4 – Segment Reporting Fields of Activity Changes in segment reporting Starting with Q1/21 the OMV Group structure was reorganized, which involved splitting and expanding former operating Business Segment Downstream into two areas: Refining & Marketing and Chemicals & Materials. Internal reporting and the relevant information provided to the chief operating decision-maker in order to assess performance and allocate resources has been updated to reflect the current organization structure. Business operations and key markets For business management purposes, OMV is divided into three operating Business Segments: Exploration & Production, Refining & Marketing, and Chemicals & Materials, as well as the segment Corporate and Other (Co&O). Each segment represents a strategic unit with different products and markets. Each Business Segment is managed independently. Strategic business decisions are made by the Executive Board of OMV. With the exception of Co&O, the reportable segments of OMV are the same as the operating segments. Exploration & Production (E&P) engages in the business of oil and gas exploration, development and production and focuses on the regions Central and Eastern Europe, North Sea, Middle East and Africa and Asia-Pacific. The Refining & Marketing (R&M) Business Segment refines and markets crude and other feedstock. It operates the refineries Schwechat (Austria), Burghausen (Germany) and Petrobrazi (Romania) with an annual capacity of 17.8 mn t. In these refineries, crude oil is processed into petroleum products, which are sold to commercial and private customers. Furthermore, it operates across the gas value chain with a successful gas sales and logistics business in Europe. OMV markets storage capacities in Austria and Germany. The business segments’ activities also cover supply, marketing, and trading of gas in Europe and Turkey and the Group’s power business activities, with one gas-fired power plant in Romania. OMV has a strong position in the markets located within the areas of its supply, serving commercial customers, and operating a retail business of approximately 2,100 filling stations. OMV holds minority stakes in various equity-accounted investments, the most significant one is the 15% participation in ADNOC Refining (United Arab Emirates) with annual capacity of 7.1 mn t OMV share. The Chemicals & Materials (C&M) Business Segment is one of the world’s leading providers of advanced and circular polyolefin solutions and a European market leader in base chemicals, fertilizers, and plastics recycling. Since the full consolidation of Borealis in 2020, OMV has a production capacity, including joint ventures, of 7.0 mn t base chemicals, 5.8 mn t polyolefins, 0.4 mn t compounding and 4.3 mn t fertilizers. The majority of production is located in Europe, with two overseas manufacturing facilities in the United States, one in Brazil and one in South Korea. In addition, OMV holds minority stakes in various equity-accounted investments, the most significant ones being Borouge (United Arab Emirates) a Borealis’ joint venture with ADNOC that operates the largest petrochemical complex in the world and the Baystar joint venture (United States) which serves the customer base in the North American markets. A new plant based on Borstar technology on the site in Pasadena is currently under construction. OMV group is pursuing various initiatives in mechanical and chemical recycling and renewable polyolefins. Group management, financing and insurance activities and certain service functions are concentrated in the Corporate & Other (Co&O) segment. One of the key measures of operating performance for the Group is Clean CCS Operating Result. Total assets include intangible assets as well as property, plant and equipment. Sales to external customers are split up by geographical areas on the basis of where the risk is transferred to the customers. The net revenues of commodity trading activities within the scope of IFRS 9 and hedging results are reported in the country in which the reporting subsidiary is located. Accounting policies of the operating segments are the same as those described in the summary of significant accounting policies, with certain exceptions for intra-group sales and cost allocations by the parent company, which are determined in accordance with internal OMV policies. Management is of the opinion that the transfer prices of goods and services exchanged between segments correspond to market prices. Business transactions not attributable to operating segments are included in the results of the Co&O segment. The disclosure of special items is considered appropriate in order to facilitate analysis of ordinary business performance. To reflect comparable figures, certain items affecting the result are added back or deducted. These items can be divided into four subcategories: personnel restructuring, unscheduled depreciation and write-ups, asset disposals and other. Furthermore, to enable effective performance management in an environment of volatile prices and comparability with peers, the Current Cost of Supply (CCS) effect is eliminated from the result. The CCS effect, also called inventory holding gains and losses, is the difference between the cost of sales calculated using the current cost of supply based on purchases from the most recent month and the cost of sales calculated using the weighted average method, after adjusting for any changes in valuation allowances. In volatile energy markets, measurement of the costs of petroleum products sold based on historical values (e.g. weighted average cost) can have distorting effects on reported results. This performance measurement indicator enhances the transparency of results and is commonly used in the oil industry. OMV, therefore, publishes this measure in addition to the Operating Result determined according to IFRS. (XLSX:) Download Segment reporting In EUR mn 2021 E&P R&M C&M Co&O Total Consolidation OMV Group Sales revenues1 6,712 25,928 11,618 376 44,634 (9,079) 35,555 Intersegmental sales (4,828) (2,780) (1,109) (361) (9,079) 9,079 — Sales to third parties 1,884 23,148 10,509 14 35,555 — 35,555 Other operating income 347 274 249 63 933 — 933 Net income from equity-accounted investments 55 12 534 — 600 — 600 Depreciation and amortization 1,396 429 535 41 2,401 — 2,401 Impairment losses (incl. exploration & appraisal) 325 718 495 0 1,538 — 1,538 Write-ups 0 3 — — 4 — 4 Operating Result 2,439 922 1,828 (74) 5,115 (51) 5,065 Special items for personnel restructuring 14 7 — 9 30 — 30 Special items for unscheduled depreciation and write-ups 100 713 483 — 1,297 — 1,297 Special items for asset disposal (209) (7) — (6) (223) — (223) Other special items 492 (204) (87) 9 210 — 210 Special items 398 509 396 12 1,315 — 1,315 CCS effect — (430) — — (430) 12 (418) Clean CCS Operating Result 2,837 1,001 2,224 (62) 5,999 (39) 5,961 Segment assets2 12,217 3,989 5,283 241 21,730 — 21,730 Additions in PPE/IA3 1,251 621 724 28 2,624 — 2,624 Equity-accounted investments4 429 1,325 5,133 — 6,887 — 6,887 1 Including intra-group sales 2 Property, plant and equipment (PPE), intangible assets (IA), not including assets reclassified to assets held for sale 3 Excluding additions in assets reclassified to held for sale and additions to decommissioning assets 4 Excluding assets held for sale Segment reporting information of earlier periods has been adjusted consequently to comply with IFRS 8.29. The tables below depict the segment reporting information as restated after the reorganization and reported in 2020: (XLSX:) Download Segment reporting In EUR mn 2020 restated E&P R&M C&M Co&O Total Consolidation OMV Group Sales revenues1 3,705 13,996 2,884 352 20,937 (4,387) 16,550 Intersegmental sales (2,178) (1,345) (515) (348) (4,387) 4,387 — Sales to third parties 1,527 12,651 2,368 4 16,550 — 16,550 Other operating income 180 265 1,391 56 1,892 (15) 1,877 Net income from equity-accounted investments 31 (202) 210 — 38 — 38 Depreciation and amortization 1,335 444 147 39 1,965 — 1,965 Impairment losses (incl. exploration & appraisal) 1,452 9 0 0 1,462 — 1,462 Write-ups 120 111 — — 230 — 230 Operating Result (1,137) 592 1,568 (56) 967 83 1,050 Special items for personnel restructuring 31 4 — 5 39 — 39 Special items for unscheduled depreciation and write-ups 1,185 (101) — — 1,084 — 1,084 Special items for asset disposal (9) (9) — (1) (19) — (19) Other special items 75 84 (1,049) 5 (885) — (885) Special items 1,282 (22) (1,049) 9 220 — 220 CCS effect — 425 — — 425 (10) 416 Clean CCS Operating Result 145 996 519 (47) 1,612 74 1,686 Segment assets2 12,662 3,955 5,767 262 22,646 — 22,646 Additions in PPE/IA3 1,150 509 251 28 1,938 — 1,938 Equity-accounted investments4 389 1,912 6,020 — 8,321 — 8,321 1 Including intra-group sales 2 Property, plant and equipment (PPE), intangible assets (IA), not including assets reclassified to assets held for sale 3 Excluding additions in assets reclassified to held for sale and additions to decommissioning assets 4 Not including assets held for sale (XLSX:) Download Segment reporting In EUR mn 2020 reported U/S D/S Co&O Total Consolidation OMV Group Sales revenues1 3,705 15,082 352 19,139 (2,589) 16,550 Intrasegmental sales (2,178) (63) (348) (2,589) 2,589 — Sales to third parties 1,527 15,019 4 16,550 — 16,550 Other operating income 180 1,656 56 1,892 (15) 1,877 Net income from equity-accounted investments 31 7 — 38 — 38 Depreciation and amortization 1,335 591 39 1,965 — 1,965 Impairment losses (incl. exploration & appraisal) 1,452 10 0 1,462 — 1,462 Write-ups 120 111 — 230 — 230 Operating Result (1,137) 2,160 (56) 967 83 1,050 Special items for personnel restructuring 31 4 5 39 — 39 Special items for unscheduled depreciation and write-ups 1,185 (101) — 1,084 — 1,084 Special items for asset disposal (9) (9) (1) (19) — (19) Other special items 75 (965) 5 (885) — (885) Special items 1,282 (1,071) 9 220 — 220 CCS effect — 425 — 425 (10) 416 Clean CCS Operating Result 145 1,514 (47) 1,612 74 1,686 Segment assets2 12,662 9,721 262 22,646 — 22,646 Additions in PPE/IA3 1,150 760 28 1,938 — 1,938 Equity-accounted investments4 389 7,932 — 8,321 — 8,321 1 Including intra-group sales 2 Property, plant and equipment (PPE), intangible assets (IA), not including assets reclassified to assets held for sale 3 Excluding additions in assets reclassified to held for sale and additions to decommissioning assets 4 Not including assets held for sale In 2021 special items for unscheduled depreciation and write-ups were mainly driven by non-cash impairment charges related to ADNOC Refining, E&P assets and the nitrogen business of Borealis. For further details on impairments see Note 7 – Depreciation, amortization, impairments and write-ups. Special items for asset disposals were mainly stemming from a gain from the sale of the stake in the Norwegian oil field Wisting. Other special items mainly consisted of non-cash valuation effects of financial assets, especially related to the reassessment of reserves redetermination rights of the Yuzhno Russkoye field in Russia, and temporary hedging effects in Exploration & Production. In Refining & Marketing and Chemicals & Materials other special items were mainly related to temporary hedging effects. In 2020 other special items in Exploration & Production mainly consisted of the reassessment of reserves redetermination rights related to the field Yuzhno Russkoye and temporary hedging effects. Refining & Marketing mainly included temporary hedging effects. Chemicals & Materials other special items were mainly related to revaluation effects for previously held 36% shares in Borealis AG triggered by the acquisition of 39% additional shares. (XLSX:) Download Information on geographical areas In EUR mn 2021 2020 Sales to third parties Allocated assets1 Equity-accounted investments2 External sales Allocated assets1 Equity-accounted investments2 Austria 5,326 4,207 14 3,466 4,388 78 Germany 8,499 1,061 31 3,268 1,105 33 Romania 4,433 5,628 — 3,456 6,106 — Norway 1,003 1,508 — 584 1,675 — Russia 642 592 117 448 619 102 New Zealand 443 550 — 402 607 — United Arab Emirates 784 1,671 5,352 325 1,479 6,874 Rest of CEE3 5,246 556 — 2,878 639 6 Rest of Europe 6,823 3,140 45 1,126 3,187 21 Rest of the world4 2,356 2,289 1,328 598 2,343 1,207 Subtotal 35,555 21,201 6,887 16,550 22,148 8,321 Not allocated assets — 529 — — 498 — Total 35,555 21,730 6,887 16,550 22,646 8,321 1 Property, plant and equipment (PPE), intangible assets (IA), not including assets reclassified to assets held for sale 2 Equity-accounted investments are allocated based on the seat of the registered office of the parent company, not including assets held for sale 3 Including Turkey 4 Rest of world: Principally Algeria, Argentinia, Brazil, Chile, China, Colombia, Egypt, India, Libya, Malaysia, Marocco, Mexico, Nigeria, Peru, South Africa, South Korea, Singapore, Tunisia, United States of America and Yemen Not allocated assets contained goodwill in amount of EUR 322 mn (2020: EUR 297 mn) related to the cash-generating unit ‘Middle East and Africa’, EUR 198 mn (2020: EUR 183 mn) related to the cash generating unit ‘SapuraOMV’ and EUR 9 mn (2020: EUR 18 mn) related to the cash-generating unit ‘Refining West’ as these CGUs are operating in more than one geographical area. schließen Co&O Corporate and Other schließen R&M Refining & Marketing business segment schließen t Metric ton schließen C&M Chemicals & Materials business segment schließen Clean CCS Operating Result Operating Result adjusted for special items and CCS effects. The Group clean CCS Operating Result is calculated by adding the clean CCS Operating Result of Refining & Marketing, the clean Operating Result of other segments and the reported consolidation effect adjusted for changes in valuation allowances, in case the net realizable value of the inventory is lower than its cost. schließen IFRSs International Financial Reporting Standards schließen Special items Special items are expenses and income reflected in the financial statements that are disclosed separately, as they are not part of underlying ordinary business operations. They are being disclosed separately in order to enable investors to better understand and evaluate OMV Group’s reported financial performance. schließen CCS/CCS effects/inventory holding gains/(losses) Current Cost of Supply; inventory holding gains and losses represent the difference between the cost of sales calculated using the current cost of supply and the cost of sales calculated using the weighted average method after adjusting for any changes in valuation allowances in case the net realizable value of the inventory is lower than its cost. In volatile energy markets, measurement of the costs of petroleum products sold based on historical values (e.g., weighted average cost) can have distorting effects on reported results (Operating Result, net income, etc.). The amount disclosed as CCS effect represents the difference between the charge to the income statement for inventory on a weighted average basis (adjusted for the change in valuation allowances related to net realizable value) and the charge based on the current cost of supply. The current cost of supply is calculated monthly using data from supply and production systems at the Refining & Marketing level. schließen Special items Special items are expenses and income reflected in the financial statements that are disclosed separately, as they are not part of underlying ordinary business operations. They are being disclosed separately in order to enable investors to better understand and evaluate OMV Group’s reported financial performance. 3 – Changes in group structureNotes to the Income Statement
