Report

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Contents

	Part 1: Annual Report of the Group – containing:
4	Directors’ Report
76	Auditor’s Report
86	Consolidated Financial Statement and Notes

	Part 2: Annual Report of OMV Aktiengesellschaft – containing:
213	Directors’ Report
224	Auditor’s Report
228	Financial Statements and Notes

	Part 3: Abbreviations and Definitions – containing:
258	Abbreviations and Definitions

	Part 4: Declaration of the Executive Board – containing:
262	Declaration according to § 124 (1) BörseG 2018

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Directors’ Report

4 — 75

5 — About OMV

8 — Market Outlook

11 — Strategy

18 — Sustainability

25 — Health, Safety, Security, and Environment

30 — Employees

33 — OMV Group Business Year

45 — Chemicals & Materials

53 — Fuels & Feedstock

57 — Energy

66 — Outlook

67 — Risk Management

72 — Other Information

About OMV

OMV produces and markets oil and gas as well as chemical products and solutions in a responsible way, and develops innovative solutions with a special focus on the circular economy. In 2023, Group sales amounted to EUR 39 bn. With a year-end market capitalization of around EUR 13 bn, OMV is one of Austria’s largest listed industrial companies. The majority of its roughly 20,600 employees work at its integrated European sites.

Our purpose and values

OMV’s purpose, “Re-inventing essentials for sustainable living,” is a fundamental part of our strategy for becoming a leading company in sustainable fuels, chemicals, and materials. It guides the Company like a North Star toward its goal of becoming a net-zero emissions company. To ensure this purpose is fully embraced, we have designed new values and behaviors that align with our new direction. Our new OMV Group values “We care | We’re curious | We progress” were introduced in 2023 and will guide us on our path to a more sustainable future.

Our business segments

In Chemicals & Materials, OMV is one of the world’s leading providers of advanced and circular polyolefin solutions, with total polyolefin sales of 5.7 mn t in 2023 (2022: 5.7 mn t). It is also a European market leader in base chemicals and plastics recycling. The Company supplies services and products to customers worldwide through OMV and Borealis¹, and its two joint ventures: Borouge (with ADNOC, based in the UAE and Singapore) and Baystar™ (with TotalEnergies, based in the US).
In Fuels & Feedstock, OMV operates three refineries in Europe: Schwechat (Austria) and Burghausen (Germany), both of which feature integrated petrochemical production, and the Petrobrazi refinery (Romania). In addition, OMV holds a 15% share in ADNOC Refining and in ADNOC Global Trading in the UAE. OMV’s total global processing capacity amounts to around 500 kbbl/d. Fuels and other sales volumes in Europe were 16.3 mn t in 2023 (2022: 15.5 mn t) and the retail network consisted at the end of 2023 of 1,666 filling stations (2022: 1,803) in eight European countries.
In Energy, OMV explores, develops, and produces crude oil and natural gas in its three core regions of Central and Eastern Europe, the Middle East and Africa, and the North Sea. OMV is currently in the process of divesting its E&P assets in the Asia-Pacific region.² Its activities also include the low carbon business and the entire gas business. Daily hydrocarbon production was 364 kboe/d in 2023 (2022: 392 kboe/d), with a nearly equal share of liquids and natural gas production. In the Gas Marketing & Power business, OMV markets and trades natural gas and power in several European countries, and it also includes its LNG business. It holds a 65% stake in the Central European Gas Hub (CEGH) and operates natural gas storage facilities with a capacity of around 30 TWh in Austria and Germany, and a gas-fired power plant in Romania.

Market Outlook

During 2023, central banks’ efforts to combat price rises continued with further interest rate hikes, while the conflict in Ukraine continued into a second year. The world was broadly subject to lower energy commodity prices than in 2022, resulting in easing price pressure on the consumer, especially in Europe. Nevertheless, muted growth prospects have remained a key concern in markets, including for oil, where the return of extensive market management by the OPEC+ group has become a strong driving factor for prices again. These issues are expected to remain central in 2024, while the potential for escalation in the Middle East conflict is also likely to continue to be the focus of markets.

The need to combat price rises across the economy remained a focus for governments and central banks across developed economies in 2023. A higher-rates world has provided a compelling backdrop for almost all aspects of the economy, as market participants and analysts try to understand the timing and extent of impacts as the world shifts further and further away from the low-rates environment that had persisted since the financial crisis of 2007–2009. This debate will undoubtedly continue into 2024. However, disinflationary trends across developed economies had, by the end of 2023, seen focus switch to the prospect of interest rate cuts, if price increases do continue to trend toward the target 2% level.
So far, higher rates appear to have been absorbed comfortably enough by the economy. Growth in the US has diverged from that in Europe, where a couple of major economies were facing the prospect of technical recessions at the end of 2023. However, overall pressure on business activity has so far been only moderate. Unemployment has risen slightly in most countries but has not been a cause for major concern. There had been fears in the spring that the indirect effects of rapid rate increases could impact the economy and markets in ways that were hard to predict, especially in the wake of the collapse of several mid-sized regional banks in the US and then Credit Suisse, though these fears quickly faded.
Lower energy prices have mitigated economic headwinds, with market prices for both oil and natural gas averaging much lower in 2023 than in the prior year. Both markets have continued to adapt to the massive shift that took place in 2022 and the huge associated rerouting of trade flows. European natural gas markets have remained volatile, a logical consequence of their structural dependence on a range of international sources of LNG, as well as the new, larger role of storage as a balancing factor. Nevertheless, both volatility and prices were lower than in 2022.
Meanwhile, oil prices continued to trend lower than their mid-2022 peak during the first half of 2023. The second half of 2023 saw supply reductions from OPEC and other producers, most notably Russia, contributing to a new rally in prices, which reached its peak for 2023 in Q3. Oil prices were briefly bolstered by the return of the so-called geopolitical risk premium following the outbreak of conflict between Israel and Hamas, before they declined toward the end of the year. Both active management of the oil market by OPEC+ and the structural vulnerability of the European natural gas market will remain key features of the energy landscape in 2024.
In refining, 2023 provided a very supportive environment for margins. While benchmark refining margins in Europe did not return to the extreme highs seen in 2022, they did massively exceed average levels from the prior years. The market was again characterized by persistent outperformance of middle distillates, a pattern that reemerged in the second half of the year, driven in part by the removal of significant volumes of sour crude oil from the market by OPEC+ producers. The outlook for 2024 is tempered by the likely addition of major refining capacities, as well as uncertainty over the level of oil demand growth. As of late 2023, the International Energy Agency (IEA) was estimating total global oil demand growth for 2024 at around 1 mn b/d, which would represent a marked slowdown from the preceding two years.
For the medium and longer term, the path of the energy transition and the decarbonization of the economy remain sources of contention and uncertainty. The trend toward cumulative increases in national, regional, municipal, and corporate pledges to decarbonize energy systems and economies continued again in 2023. According to the University of Oxford’s Carbon Tracker, an estimated 92% of global GDP is now covered by a net-zero pledge, a slight increase (2 percentage points) year-on-year. In the corporate world, of the largest 2,000 companies by revenue globally, a majority now have at least a proposal to achieve net-zero emissions. More than one third have a net-zero target as part of their corporate strategy.
These changes continue to be reflected in scenarios from major voices in the energy industry. The IEA, in its most recent World Energy Outlook, shows another incremental shift in projected future demand away from coal, oil, and gas and toward renewables and electricity in its STEPS scenario, which provides a view of the energy system based on current policy settings. The gap to a trajectory that achieves the maximum temperature increases described in the Paris agreement remains significant, however. Scenarios that achieve net-zero emissions for the global energy system by 2050 require even faster deployment of low-carbon technologies and associated declines in fossil fuel demand than when they first started to emerge in 2021, due to the growth in demand in the interim.

World total primary energy supply

In EJ

Source: IEA World Energy Outlook 2023

In the Stated Policies Scenario (STEPS), the average annual growth rate of 0.7% in total energy demand to 2030 is around half the rate of energy demand growth of the last decade. Demand continues to increase through to 2050.
In the Announced Pledges Scenario (APS), total energy demand flattens, thanks to improved efficiency and the inherent efficiency advantages of technologies powered by electricity – such as electric vehicles and heat pumps – over fossil-fuel-based alternatives.
In the Net-Zero Emissions by 2050 Scenario, electrification and efficiency gains proceed even faster, leading to a decline in primary energy of 1.2% per year to 2030.

Global petrochemicals¹ demand

In mn t

Source: Chemical Market Analytics by OPIS, a Dow Jones Company; fall 2023

¹ Ethylene and propylene

Oil demand for chemical production is expected to increase, primarily originating from rising demand in emerging markets and closely linked to GDP development. By 2030, oil demand for chemical production will rise by about 3% per year. Approximately 80% of chemical and plastic demand growth will be concentrated in emerging markets, mainly Asia, up to 2030 and beyond. This region represents most of the global population growth and the corresponding potential for improving living standards. For mature markets such as Europe, North America, and Japan, demand growth is anticipated to remain healthy in the long term, in line with economic development, but growth rates are expected to slow.

Global virgin polyolefin demand

In mn t

Source: Chemical Market Analytics by OPIS, a Dow Jones Company; fall 2023

Polyolefins are the largest market segment in producing plastic goods. Demand for virgin polyolefins will continue to grow at a rate above global GDP until 2030, driven by the Asian market. Polyolefins will remain essential for various industries, including packaging, construction, transportation, healthcare, pharmaceuticals, and electronics.

Global recycled polyolefin demand

In mn t

Source: Chemical Market Analytics by OPIS, a Dow Jones Company; fall 2023

The key success factor for medium- to long-term sustainable business models is growth in renewable feedstocks, bioplastics, and the development of circular solutions. Recycled polyolefin demand is expected to grow at a rate more than three times faster than global GDP until 2030, with Asia having the largest share.

Scenario analysis

OMV uses two different scenarios: the base case and the ‘net zero emissions by 2050’ case. The scenarios differ in the underlying expectations about the pace of the future worldwide decarbonization and lead to different assumptions for demand, prices and margins of fossil commodities.
- 1. The base case is built on a scenario developed by the internal Market Intelligence department and assumes that all decarbonization pledges announced by governments around the world will be implemented in full and on time. In this scenario, the temperature increase by 2100 will be limited to 1.7°C with a probability of 50%. The underlying demand and price developments of fossil commodities are in line with the IEA APS.³ The base case is used for mid-term planning as well as for estimates relating to the measurement of various items in the Group financial statements, including impairment testing of non-financial assets and the measurement of provisions.
- 2. The ‘net-zero emissions by 2050’ case which is based on a faster decarbonization path than the base case is used for calculating sensitivities to recognize the uncertainty of the pace of the energy transition and to better understand the financial risk of the energy transition on the existing assets of OMV. The assumptions used in this case are in line with the Net-Zero Emissions by 2050 (NZE) scenario modeled by the IEA.³ It shows a pathway for the global energy sector to achieve net-zero CO2 emissions by 2050 and is compatible with limiting the temperature increase to 1.5°C.

 For details on climate change-related risks and their management, see the chapter Risk Management and Note 2 of the Consolidated Financial Statements.

Strategy

OMV’s goal is to transform from an integrated oil, gas, and chemicals company into a leader in innovative sustainable fuels, chemicals, and materials, leveraging opportunities in the circular economy. The Group aims to become a net-zero emissions company by 2050 for all three scopes of greenhouse gas emissions. By taking this path, OMV expects to deliver an operating cash flow excluding net working capital effects of around EUR 6 bn by 2025 and at least EUR 7 bn by 2030, a ROACE of at least 12%, and to grow the distributions to its shareholders. Re-inventing essentials for sustainable living is OMV’s purpose.⁴

Strategic cornerstones

OMV’s goal is to transform from an integrated oil, gas, and chemicals company into a leader in innovative sustainable fuels, chemicals, and materials, leveraging opportunities in the circular economy. An integral part of the Group’s strategy is its ambition to become a net-zero emissions company by 2050 for Scope 1, 2, and 3 emissions. In view of the ongoing transformation in the energy industry and a global goal of net-zero emissions, OMV is building on its strengths and seizing opportunities to position itself competitively.

2030 strategic priorities

_►Become a net-zero emissions company by 2050; reduce Scope 1 and 2 emissions by 30% and Scope 3 emissions by 20% by 2030
_►Develop into a global leader in specialty polyolefin solutions
_►Establish a global leadership position in circular economy solutions
_►Become a leading European producer of sustainable fuels and chemical feedstocks
_►Build a low carbon business
_►Shift to gas and reduce fossil production
_►Enhance OMV’s shareholder value: deliver growth with strong financials and reward its shareholders through progressive regular dividends and special dividends

OMV is committed to becoming a net-zero emissions company by 2050 (Scopes 1, 2, and 3) and has set interim targets for 2030 and 2040, with well-defined actions to meet the 2030 targets. By 2030, OMV aims to reduce its Scope 1 and 2 emissions by 30% and its Scope 3 emissions by 20%. The Group also aims to reduce its intensity in energy supply by 20% by 2030. This will be achieved by increasing zero-carbon energy sales, increasing polyolefin recycling and sustainable feedstocks and products, and using neutralization measures such as CCS, while decreasing fossil fuel sales.
This path will enable OMV to deliver an operating cash flow excluding net working capital effects of around EUR 6 bn by 2025 and at least EUR 7 bn by 2030, a ROACE of at least 12% in the mid and long term, and continuation of its attractive shareholder distributions. These are supported by sound capital allocation priorities and a strong balance sheet, with a mid-/long-term leverage ratio of below 30%.
Building on its current strengths and a vision of leader-ship in technology and innovation, OMV will be well positioned to thrive sustainably in a world with low greenhouse gas (GHG) emissions. This strategy enhances OMV’s shareholder value, as its transformation path allows for a sustainable growth business model, showing the Group’s commitment to cutting GHG emissions and delivering strong financials and attractive shareholder distributions.
The Chemicals & Materials business will be the core growth engine of the Group. OMV aims to become a global leader in specialty polyolefin solutions, with a significantly stronger position in the Middle East, Asia, and North America. The Group will strengthen its existing polyolefins business, while also building a strong and diversified chemicals and materials portfolio by expanding into adjacent businesses and new product groups. To achieve this, OMV will target investments and initiatives that improve its returns and carbon footprint. Moreover, OMV will expand its geographical reach, pursuing high-growth markets such as Asia and North America. This will be achieved through in-market investments and partnerships based on differentiated technologies and application portfolios. Furthermore, the Company will diversify its presence beyond polyolefins by entering into specialty chemicals and materials to build leadership positions.
An important pillar of OMV’s strategy is the ambition to become a leader in renewable and circular chemicals and materials. The Group will capture the potential of emerging renewable and circular markets by leveraging its integrated technology platform and end-to-end position to develop innovative products and new business models. The circular economy is crucial for a long-term, sustainable chemicals business. Thus, a transition toward an economically viable commercial scale is needed. In this context, the Group’s target is to deliver around 2 mn t of sustainable Chemicals & Materials products by 2030. 80% of these volumes are planned to be produced in Europe, which represents around 40% of OMV’s polyolefin production capacity in Europe.
OMV also aims to become a leading innovative producer of sustainable fuels and chemical feedstocks. To achieve this, the Company will optimize the interface between fuels and chemicals by redesigning plants to maximize high-value fossil resources. The production of renewable fuels and sustainable feedstocks in all three refineries will increase to approximately 1.5 mn t. Crude oil distillation throughput in Schwechat and Burghausen is expected to decrease by 2.6 mn t. OMV aims to increase the chemical yield in Western refineries to around 24%, while diesel output should be significantly reduced by 2030. In the Petrobrazi refinery, the Group aims to build new production units for advanced biofuels and green hydrogen.
Furthermore, OMV aims to become the first choice of our customers for energy, mobility, and convenience, focusing on the sale of sustainable aviation fuels, building an EV charging network, and growing its non-fuel retail business.
In the Energy business, OMV is focusing on maximizing value and harvesting cash. OMV plans to make significant investments in low-carbon solutions, namely in around 10 TWh of renewable energy (e.g., geothermal) and around 5 mn t p.a. of CCS capacity by 2030 to reduce its GHG footprint. Until 2030, OMV gradually aims to reduce its fossil production to ~350 kboe/d by 2030, with a share of around 60% of natural gas. The Energy business will act as a cash engine for the Group and will support the transformation.

Chemicals & Materials (C&M)

2030 strategic priorities

_►Develop into a global leader in specialty polyolefin solutions
_►Grow in attractive markets, with a particular focus on North America and Asia
_►Grow sustainable chemical production capacity to up to 2 mn t
_►Establish a leading position in renewable and circular economy solutions
_►Diversify portfolio by entering adjacent products and new product groups

Demand for chemical products will continue to grow above global GDP, even in a low GHG emission world. Virgin polyolefin demand is expected to grow slightly above global GDP with a CAGR (2023–2030) of 3.6%. Most of this demand growth stems from high-growth markets in Asia and is associated with a variety of different end-user markets and applications, providing a natural hedge against the volatility of individual industries. Recycled polyolefins are projected to grow with a CAGR (2023–2030) of 12.5%, significantly above GDP, thanks to strong end-market commitments especially in the consumer goods sector, increasing regulations, and the need for end-of-life solutions for plastic waste.
Polyolefins play a critical role as eco-efficient enablers for a sustainable future, e.g., enabling lighter-weight automotive solutions and packaging that reduces food waste and increases shelf life. The current linear value chain in polyolefins faces significant challenges: mismanaged and unmanaged waste, environmental pollution, unnecessary emissions, and accumulation of microplastics. Transforming the value chain from a linear into a circular model will be one of the priorities for a sustainable chemicals business going forward. However, this requires a profound transformation to enable scale at attractive profitability. Current feedstock accessible directly from recycling is limited. For this reason, tapping into upstream and downstream feedstocks, primarily through partnerships, is critical to ensuring sufficient access to plastic waste. Partnerships with brand owners and retailers ensure attractive long-term offtake agreements with green product premiums. In addition, the future operating model needs to be set up to rapidly respond to changing customer and regulatory demands, with a primary focus on the advanced European landscape but also on the ability to quickly roll out successful blueprints globally.
OMV aims to strengthen its polyolefins business by building on existing strengths and capabilities and fully exploiting competitive advantages to grow into adjacent markets, targeting investments and initiatives that improve returns and decrease the Group’s carbon footprint.
C&M has a strong pipeline of organic growth projects in Europe, the Middle East, and North America.

Key growth initiatives include:

_►Expansion of the Burghausen naphtha-based steam cracker (2022)
_►Expansion of propylene production capacities in Belgium. Building a 750,000 t propane dehydrogenation (PDH) plant in Kallo, which is expected to start up in 2025
_►Expansion of North American footprint through Baystar JV, building a 1 mn t ethane-based cracker and expanding the polyethylene plant’s capacity to >1 mn t annually. The steam cracker started up in 2022, and the polyolefin plant Bay 3 started end of 2023.
_►Expansion of Borouge JV through the mega project Borouge 4, building an ethane-based steam cracker of 1.5 mn t and polyolefin plants with a capacity of 1.4 mn t. The steam cracker and polyolefin plants are expected to start up at the end of 2025.

The C&M business is seeking to strengthen its polyolefin and specialty product portfolio, securing attractive margins. The business aims to grow in Asia and to strengthen its North American footprint via organic and inorganic investments. In addition, to further broaden its portfolio, C&M aims to tap into adjacent pockets of value creation and develop a more broadly diversified chemicals leadership position, primarily through M&As.
Key growth initiatives via organic or inorganic investments include building a polypropylene position in North America, growing in differentiated specialty products, and growing in Asia in specialty polyolefins and circular solutions.

In addition to overall market attractiveness, strategic fit, and value creation, key investment criteria for potential diversification opportunities are sustainability and geographical footprint. A continued focus on innovation will be essential to maintaining technology leadership.

In July 2023, OMV decided to pursue negotiations with ADNOC on a potential combination of Borealis and Borouge. The transaction would create a global polyolefin company with material presence in key markets and potential for growth, accelerating OMV’s strategy implementation. Open-ended negotiations are still ongoing, aiming for equal terms under a jointly controlled, listed platform.
The Group aims to become a leader in renewable and circular chemicals and materials. To achieve this goal, the Group plans to capture emerging renewable and circular market potential by leveraging its integrated technology platform and end-to-end position to establish new products and novel business models.
The aim is to deliver approximately 2 mn t p.a. of sustainable products by 2030, with a focus on Europe: 40% of OMV’s polyolefin production capacity in Europe is planned to be sustainable. This will be accomplished by accelerating ongoing (advanced) mechanical and chemical recycling initiatives in Europe, as well as by using bio-feedstocks. The sustainable products will be the result of the increasing use of bio-monomers for polyolefins and the broader chemicals portfolio, and leveraging the close integration with OMV’s Fuels & Feedstock business. Building on its European sustainability leadership, C&M will utilize its global footprint to expand circular economy solutions globally with existing joint ventures, new growth platforms, and additional partnerships across Asian and North American assets.
OMV’s C&M business will be the major growth engine of the Group. With a portfolio of various growth initiatives, it will balance sustainability, risk, and returns and strengthen resilience against market dynamics. The C&M strategy has significant growth and value creation potential.
Total organic investments in Chemicals & Materials will average EUR 0.9 bn p.a. in 2022–2030, EUR 0.3 bn p.a. of which will be allocated to sustainable and CO₂ emissions reduction projects.

Fuels & Feedstock (F&F)

Strategic priorities

_►Increase chemical yield to 24% in Western refineries
_►Grow the production of renewable mobility fuels and sustainable chemical feedstocks to approximately 1.5 mn t, while reducing crude oil distillation throughput by 2.6 mn t
_►Market at least 700,000 t of sustainable aviation fuels
_►Invest in an EV charging network and significantly increase margin contribution from the non-fuel retail business
_►Significantly reduce absolute Scope 1, 2, and 3 emissions

Going forward, F&F will reshape its product portfolio, building on renewable mobility fuels and sustainable chemical feedstocks. The Company is focusing on safe, innovative, and ecologically and economically sustainable operations. As a result, F&F will enable the transformation to low-carbon operations and sales while maintaining strong profitability.
European fossil refining market potential is expected to decrease up to 2030, as both volumes and refining margins are forecast to be under pressure driven by the pace of the energy transition in Europe. In the same time horizon, strong growth will materialize for renewable mobility fuels, as well as sustainable chemical feedstocks. To leverage the opportunities of the ongoing energy transition, the F&F division is developing a sustainable production portfolio for renewable fuels and sustainable chemical feedstocks, such as the co-processing of biogenic feedstocks in Schwechat, reaching approximately 1.5 mn t in total by 2030. In this context, the sourcing of bio-feedstocks will be a critical success factor. 80% of OMV’s feedstock requirements for 2030 already has a clear sourcing plan. In the same time period, F&F will decrease crude oil distillation throughput in the Schwechat and Burghausen refineries, from 12.9 mn t in 2019 to approximately 10.3 mn t in 2030, in line with changing demand patterns. This adaptation will significantly reduce heating oil and diesel product output by 2030, while increasing the chemical yield to around 24% for the Western refineries. In the Petrobrazi refinery, the Group aims to build new production units for advanced biofuels and green hydrogen.
OMV will optimize the interface between oil and chemicals, with a focus on the integrated Schwechat and Burghausen sites, by reconfiguring plants and sites to maximize high-value fossil resources, and with a growing share of sustainable feedstocks for chemicals production. OMV will continue to operate its three European refineries in Austria, Germany, and Romania as an integrated system, optimizing asset utilization and maximizing margins. Furthermore, the Company is implementing energy and operational efficiency measures within the existing refinery assets to maintain a leading cost position in Europe.
OMV’s goal with its international, non-operated refining positions in the UAE (ADNOC Refining) and Pakistan (PARCO) is to improve their commercial performance. The focus in the short to mid term will be on operational excellence and performance culture at each asset. In the mid to long term, OMV will evaluate commercial options for the production of sustainable mobility fuels and chemical feedstocks.
The F&F activities in Europe secure OMV’s customer and market access. In line with changing demand patterns, as well as regulatory obligations, OMV will gradually transform its product portfolio to include more sustainable fuels and services by 2030, thereby increasing the resilience of its product mix. OMV will build a growing business for sustainable aviation fuels (SAF) in Europe by establishing new market positions in the vicinity of planned production sites. F&F strives to market at least 700,000 t of SAF by 2030. OMV will aim to grow SAF sales volumes significantly beyond the planned regulatory framework and will target the growing voluntary compliance market. Simultaneously, F&F will sustain its position of bitumen and marine fuel oil to safeguard refinery utilization, while continuing to evolve these products to lower GHG emissions.
In Retail Mobility & Convenience, OMV intends to further develop existing market potential by significantly growing the non-fuel business sector. New gastronomy and service concepts, as well as cooperation in the food logistics sector, are expected to significantly increase the volume and margin of the non-fuel business by 2030. In parallel, the Company will further increase its premium fuel share as a differentiator and significant margin generator by 2030. OMV Retail Mobility & Convenience will expand into e-mobility, building a leading position in out-of-home electric vehicle (EV) charging locations such as highway and transit refilling stations, as well as convenience hubs. With a total investment in this segment of more than EUR 400 mn by 2030, OMV will grow the profitability of the retail business as well as monetizing the value of its assets.
Total organic investments in the F&F business will average EUR 1 bn p.a. in 2022–2030, EUR 0.5 bn p.a. of which will be allocated to sustainable and carbon emissions reduction projects.
With this new strategy, OMV will accelerate the attainment of its goal of lowering GHG emissions by reducing fossil fuels, stepping up the production and marketing of renewable fuels and sustainable chemical feedstocks, and implementing energy efficiency measures.

Energy

2030 strategic priorities

_►Portfolio managed as a robust cash generator to support the Group’s transformation
_►Low-carbon business solutions will be developed, with around 10 TWh in renewable energy (e.g., geothermal) and around 5 mn t p.a. CCS, to significantly reduce absolute and relative GHG emissions
_►Production is expected to be ~350 kboe/d by 2030, excluding any potential divestments

_►Upon evaluation of its portfolio, OMV started the process of divesting its E&P assets in the Asia-Pacific region (Malaysia and New Zealand).

In the context of the ongoing energy transition and to support OMV Group’s transformation, Energy will be managed as a robust cash generator and will focus on further upgrading its competitive asset portfolio, concentrating on the three core regions: Central and Eastern Europe, the North Sea, and the Middle East and Africa. The shift of the hydrocarbon portfolio to gas will continue, with further divestments of non-core positions to improve efficiency, while the low-carbon business will be ramped up to achieve a material contribution by the end of the decade. OMV is in the process of divesting its E&P assets in the Asia-Pacific region: a 50% stake in SapuraOMV Upstream Sdn. Bhd. and 100% of the shares in OMV New Zealand Limited. On January 31, 2024, OMV has signed an agreement to divest its 50% shareholding in Malaysia’s SapuraOMV Upstream Sdn. Bhd. to TotalEnergies. The divestment is anticipated to close around the end of the first half of 2024.

Boosting value delivery and cash generation are the main goals and criteria for managing and developing the portfolio of oil and gas assets, with a strong emphasis on gas. The delivery over the mid term of key projects in the portfolio, such as the Neptun development in Romania, and the Umm Lulu SARB Phase 2 plateau extension in the UAE, will support strong cash generation by and beyond 2025. OMV expects production levels of ~370 kboe/d by 2025 and ~350 kboe/d by 2030, with a share of around 60% of natural gas, excluding any potential divestments. In order to sustain the above-mentioned production levels, ramp up the low-carbon business, and deliver strong cash generation, OMV Energy anticipates a total annual average CAPEX in 2022–2030 of around EUR 1.6 bn, EUR 0.6 bn of which is earmarked for low-carbon activities. OMV’s exploration and appraisal activities are being streamlined further, and the total annual average budget is expected to be around EUR 0.2 bn over the decade. Toward the end of the decade, oil and gas CAPEX and E&A expenditure will be reduced, thereby allowing for more capital to be allocated to ramping up the low-carbon business and the broader OMV transformation.
OMV Energy plans to reinforce the competitiveness of its portfolio and resilience through a strong focus on operational excellence, fostered by digitalization and agile ways of working, as well as portfolio optimization.
To supply its gas customers, OMV will continue to complement its own natural gas production in Norway, Austria, and Romania with third-party supply sources. The equity gas contribution to the gas sales business will decrease significantly toward the end of the decade in the Northwestern European region due to natural field decline. As needed, this will largely be replaced with green gases, such as biogas and hydrogen, primarily obtained from the markets, to reduce the carbon intensity of its product portfolio. New equity gas volumes from the Romanian Neptun project will keep volumes high in Southeastern Europe. OMV will also aim to direct an increasing share of its natural gas sales to customers from non-energy sectors, to further reduce its Scope 3 portfolio emissions.

The Group will explore a range of opportunities and portfolio choices that enhance cash flow generated by the current Energy business and support a potential accelerated transition to sustainable fuels, chemicals, and materials. These opportunities may include capturing the full value potential of the asset base, e.g., low-carbon business potential, maintaining reservoir production excellence, and optimizing costs as well as assessing and developing joint venture opportunities for selected assets without excluding inorganic options.
To reduce its operational carbon footprint, OMV Energy will pursue the phase-out of routine gas flaring and venting, reduce fugitive methane emissions, and introduce portfolio optimization measures. In addition, renewable energy projects will also be pursued for the purpose of powering OMV’s own operations. To achieve an overall reduction of both absolute and relative GHG emissions from its product portfolio, OMV Energy will leverage its existing asset base and core skills to deliver financially strong low-carbon business projects. Available opportunities will be captured to build up geothermal energy capacity that generates up to 9 TWh p.a. by 2030. In addition to geothermal, around 1 TWh from renewable power will be developed in OMV core regions with favorable sun and wind conditions to serve primarily captive demand, thereby reducing Scope 2 emissions by OMV’s own operations. The Energy business will further tap into its existing reservoirs and (sub-)surface capabilities to implement opportunities that lead to a CCS capacity of approximately 5 mn t p.a. of CO₂ net to OMV by 2030. In addition, further opportunities where OMV Energy can leverage its strengths and capabilities are being explored, e.g., hydrogen and energy storage, and will potentially be pursued in consideration of OMV’s strategic priorities.

Decarbonization strategy

2030 strategic priorities

_►Reduce OMV Group Scope 1 and 2 emissions by 30%
_►Reduce OMV Group Scope 3 emissions by 20%
_►Reduce OMV Group carbon intensity of energy supply by 20%

All reduction targets are measured against a 2019 baseline.
OMV is committed to achieving net-zero emissions (Scopes 1, 2, and 3) by 2050, with interim targets for 2030 and 2040. OMV targets are set at an absolute and intensity level with the ultimate goal of achieving net-zero emissions in Scopes 1, 2, and 3 by 2050. For Scopes 1 and 2, OMV is aiming for an absolute reduction of 30% by 2030 and of 60% by 2040. For the defined categories in Scope 3, OMV is aiming for an absolute reduction of 20% by 2030 and of 50% by 2040. In terms of reducing the carbon intensity of energy supply, OMV intends to achieve a decrease of 20% by 2030 and 50% by 2040.
OMV has also voluntarily committed to applying the Oil and Gas Climate Initiative (OGCI) framework. As a result, OMV committed to:

_►E&P methane emissions accounting shall be in line with the OGCI framework as a minimum
_►Operated E&P assets must have a source-level measurement of methane emissions (OGCI level 4) in three years’ time at the latest
_►Reduce methane intensity to 0.2% by 2025 and to 0.1% by 2030.

OMV awaits the publication of the science-based targets (SBT) methodology for the oil & gas sector toward the end of 2024 to evaluate its targets against the SBT requirements and aims to get them approved by the Science Based Target initiative (SBTi).
These emissions reductions can only be achieved with considerable effort and appropriate capital allocated: the Group has earmarked organic investments of more than EUR 13 bn for this purpose in 2022–2030, which represents around 40% of planned total organic CAPEX. All business units will build on their existing strengths and know-how on this transformation journey. Three key initiatives will be undertaken to achieve the targeted reductions by 2030:

_►Increase in Chemicals & Materials recycling and sustainable feedstocks, and delivery of approximately 2 mn t p.a. of circular products: recyclate production substituting fossil chemicals and materials production and production from biogenic feedstock
_►Increase in zero-carbon energy sales: significant increase in sustainable and biobased fuels, green gas sales, and build-up of photovoltaic electricity capacity primarily for captive use as well as geothermal energy
_►Decrease in fossil fuel sales: significant decrease in fossil fuels and a less steep decline in natural gas sales

Besides these efforts, neutralization measures will be necessary. OMV anticipates that it will use around 5 mn t of CCS capacity across all business units. All energy purchases in the C&M business segment are planned to be 100% renewable by 2030. The inorganic growth of the Chemicals & Materials business will be executed in line with OMV decarbonization targets with decarbonization pathways either in place or to be implemented following a possible acquisition.

Finance

2030 strategic priorities

_►Deliver a clean CCS Operating Result of at least EUR 6 bn by 2030

_►Generate operating cash flow excluding net working capital effects of EUR ≥7 bn by 2030
_►Target a ROACE of ≥12% in the mid and long-term
_►Ensure sound capital allocation priorities: organic CAPEX, dividend, inorganic growth, deleveraging and special dividends⁵
_►Maintain strong balance sheet, with a mid/long-term leverage ratio below 30%
_►When the leverage ratio is below 30%, distribute around 20% to 30% of operating cash flow (including net working capital effects) per year to its shareholders through its regular dividend, as a priority, and additionally, if sufficient funds are available, through special dividends
_►Commit to attractive shareholder distributions

The Group’s financial strategy aims to increase the Company’s value and shareholder return, while ensuring a robust balance sheet, along with a financially resilient portfolio that thrives in a low-carbon world and has attractive growth potential well into the future. The value-driven finance strategy operates according to a clear framework for enabling long-term profitable and resilient growth. It aims to achieve a ROACE of at least 12%, positive free cash flow after dividends, and a strong balance sheet, with a mid/long-term leverage ratio of below 30%. Further targets include a clean CCS Operating Result of at least EUR 5 bn by 2025 and EUR 6 bn by 2030, increasing clean CCS net income attributable to shareholders, operating cash flow excluding net working capital of around EUR 6 bn by 2025 and at least EUR 7 bn by 2030, and attractive shareholder distributions. When building its financial plan, OMV defined a sound capital allocation policy: first, investing in its organic portfolio; second, paying attractive dividends; third, pursuing inorganic spending for an accelerated transformation; fourth, deleveraging; and fifth, special dividends. In its capital allocation, the Group focuses on selecting the most competitive and resilient projects. The defined investment criteria include hurdle rates and payback periods by business reflecting respective risk and return profiles, as well as testing projects for their resilience and break-even versus relevant market KPIs.

To achieve its strategic goal, OMV is planning a yearly organic CAPEX of around EUR 3.5 bn for the period 2022–2030. Overall, the Group is allocating more than EUR 13 bn in this period to achieve its ambitious decarbonization targets, which represents around 40% of total organic CAPEX. In addition, OMV will consider inorganic growth in areas of strategic importance. However, this will depend on the Group’s indebtedness headroom. Moreover, the Group’s portfolio of assets can provide options through divestments to accelerate strategy execution when attractive acquisition targets in targeted growth areas become available.

The Group’s strategy, supported by disciplined capital allocation, will enable OMV to generate increasing and resilient cash flows and higher earnings. These solid financials ensure a strong balance sheet for the Group. In its financial framework, OMV has made a significant commitment to ensuring a robust balance sheet and an investment-grade credit rating. The Company aims to achieve a leverage ratio of below 30% for the mid and long term. Depending on portfolio measures, the leverage ratio can exceed 30%; however, this will then be followed by a deleveraging program to ensure the balance sheet is strengthened.
OMV seeks to align its long-term funding policy with the Company’s sustainability strategy. Therefore, OMV is assessing the opportunity of green and sustainability-linked funding, which links the cost of a financing instrument to the achievement of specific strategic sustainability targets, such as GHG emission reduction goals or sustainable polyolefin production targets.
During the strategy period, OMV is committed to delivering attractive shareholder distributions. The Group has amended its shareholder distribution policy in December 2022 and added special dividends as a new, additional instrument to the existing progressive dividend policy. The progressive regular dividend policy is maintained and unaffected by this amendment. When OMV’s leverage ratio is below 30%, OMV aims to distribute approximately 20% to 30% of the OMV Group's operating cash flow (including net working capital effects) per year to its shareholders through its regular dividend, as a priority, and additionally, if sufficient funds are available, through the new instrument of a special dividend. In case of a leverage ratio of 30% or higher, OMV’s progressive regular dividend will be maintained, but no special dividend shall be paid. The dividend payments in any given year are subject to specific dividend proposals by the Executive Board and the Supervisory Board, as well as approved by the Annual General Meeting.

Sustainability

We are committed to building a sustainable world worth living in – for everyone. Sustainability and circularity lie at the center of our Group strategy. We aim to become a net-zero business by 2050, accelerate the energy transition, and proactively expedite the transition from a linear to a circular economy. We build positive relationships with our employees, communities, suppliers, and other stakeholders, including by addressing the social and economic effects of the transition to an environmentally sustainable economy. Our Sustainability Framework is built around the three pillars Environmental, Social, and Governance (ESG).

Our Strategy 2030 is underpinned by this Sustainability Framework, with all business decisions being guided by our ambition to become a net-zero business. Within this Sustainability Framework, we have established five strategic focus areas: Climate Change, Natural Resources Management, Health, Safety, and Security, People, and Ethical Business Practices. For each of these focus areas, we have formulated concrete commitments, targets, and actions to be achieved by 2030, which represent OMV’s contribution to the UN 2030 Agenda for Sustainable Development.

OMV’s sustainability commitments and targets

Climate Change

_► Commitments:

► OMV will continuously improve the carbon efficiency of its operations and product portfolio. OMV is fully committed to supporting and accelerating the energy transition and aims to become a net-zero business by 2050 or sooner.

_►Targets 2025:

► Reduce carbon intensity of operations (Scope 1) by ≥30% vs. 2010
► Reduce carbon intensity of product portfolio (Scope 3) by >6% vs. 2010
► Achieve at least 1 mn t CO2e reductions from operated assets in 2020–2025
► Achieve an E&P methane intensity of 0.2% or lower

_►Targets 2030:

► Reduce Scope 1 and 2 emissions by ≥30% vs. 2019
► Reduce Scope 3⁶ emissions by ≥20% vs. 2019
► Reduce carbon intensity of energy supply by ≥20% vs. 2019
► Achieve an E&P methane intensity of 0.1% or lower
► Zero routine flaring and venting of associated gas as soon as possible, but no later than 2030

_►Targets 2040:

► Reduce Scope 1 and 2 emissions by ≥60% vs. 2019
► Reduce Scope 3⁶ emissions by ≥50% vs. 2019
► Reduce carbon intensity of energy supply by ≥50% vs. 2019

Natural Resources Management

_►Commitments:

► OMV is fully committed to taking action on responsible natural resources management and will proactively expedite the transition from a linear to a circular economy.
► OMV aims to minimize environmental impacts by preventing water and soil pollution, reducing emissions, efficiently using natural resources, and avoiding biodiversity disruption.

_►Targets 2025:

► Increase volume of sustainable (includes recycled and biobased) polyolefins or other chemicals production capacity to 600,000 t p.a.
► Increase reuse and recycling of waste from operations
► Reduce freshwater withdrawal

_►Targets 2030:

► Establish approx. 2 mn t p.a. sustainable (includes recycled and biobased) polyolefins or other chemicals production capacity
► Reduce natural resources use by cutting oil and gas production levels to around 350 kboe/d and reducing crude distillation throughput by 2.6 mn t
► Increase reuse and recycling of waste from operations
► Reduce freshwater withdrawal

Health, Safety, and Security

_►Commitments:

► Health, safety, and security have the highest priority in all activities. OMV is fully committed to proactive risk management in realizing its HSSE vision of “Committed to Zero Harm – Protect People, Environment, and Assets.”.

_►Targets 2025:

► Achieve a Total Recordable Injury Rate (TRIR) of around 1.0 per 1 mn hours worked
► Achieve zero work-related fatalities
► Maintain leading position in Process Safety Event Rate

_►Targets 2030:

► Stabilize the Total Recordable Injury Rate (TRIR) at below 1.0 per 1 mn hours worked
► Achieve zero work-related fatalities
► Maintain leading position in Process Safety Event Rate

People

_► Commitments:

► OMV is committed to building and retaining a talented expert team for international and integrated growth. We embrace our difference(s) and use our diversity of thought and experience as a catalyst for growth and creativity.
► OMV is committed to ensuring fair treatment and equal opportunities for all employees and has zero tolerance for discrimination and harassment of any kind.
► As a signatory to the United Nations Global Compact, OMV is fully committed to the UN Guiding Principles on Business and Human Rights, and aims to contribute to the UN’s 2030 Agenda for Sustainable Development by pursuing a social investment strategy that addresses local needs and the Sustainable Development Goals (SDGs).
► OMV is committed to contributing to a Just Transition for our employees and communities, and addressing the social and economic effects of the transition to an environmentally sustainable economy.

_►Targets 2025:

► Increase share of women at management level to 25%
► Keep high share of executives with international experience at 75%
► Train all OMV Group employees in human rights
► Assess Community Grievance Mechanism (CGM) of all sites against UN Effectiveness Criteria

_►Targets 2030:

► Increase share of women at management level to 30%
► Min. 20% female Executive Board members (stretch target 30%)
► Increase share of international management to 65%
► Keep share of executives with international experience at 75%
► Increase average number of annual learning hours to a min. of 30 hours per employee
► Increase support for employees with special needs at our main locations
► Conduct human rights assessments and develop action plans for OMV Group operations with a high level of human rights risks every five years
► Direct at least 1% of Group investment per year toward social goals (based on previous year’s reported net income attributable to stockholders of the parent)

Ethical Business Practices

_►Commitments:

► OMV strives to uphold equally high ethical standards at all locations. We aim to earn our stakeholders’ confidence by implementing a high standard of corporate governance and by maintaining high standards of transparency and predictability.
► OMV is committed to implementing sustainable procurement, which means caring about the environmental, social, and economic impacts of the services and goods the Company intends to purchase.

_►Targets 2025:

► Be an active member of Together for Sustainability (TfS, further details below) and carry out sustainability evaluations of all suppliers covering >80% of Procurement spend
► Engage with suppliers covering 80% of Procurement spend and assess their carbon footprint as a foundation to define and run joint low-carbon initiatives
► Promote awareness of ethical values and principles: conduct in-person or online business ethics training for all employees

_►Targets 2030:

► Extend sustainability evaluations to all suppliers covering 90% of Procurement spend
► Ensure all suppliers covering >80% of Procurement spend have carbon reduction targets in place

Climate change

OMV recognizes climate change as one of the most important global challenges and fully supports the goals set forth by the Paris Agreement. OMV integrates risks and opportunities related to climate change impacts into the development of the Company’s business strategy and the planning of operational activities. In this regard, OMV continuously improves the carbon efficiency of its operations and product portfolio and is fully committed to supporting and accelerating the energy transition. OMV aims to transform into a net-zero business by 2050.
OMV implements measures aimed at optimizing its operational processes, increasing energy efficiency, reducing flaring and venting, reducing methane emissions through leakage detection and repair, and improving asset integrity. As part of OMV’s commitment to the World Bank’s “Zero routine flaring by 2030” initiative, we will continue to phase out routine flaring and venting as soon as possible, but no later than 2030. For example, in 2023, a combined heat and power unit that recovers gas that would otherwise be vented and/or flared was installed in the Padina production system in Asset Moldova. As a result, an emissions reduction of approximately 18,000 t CO₂e is expected during the first full year after implementation.
To reduce our Scope 1 emissions, we are increasingly turning to renewable sources of electricity to power our operations. For instance, in 2023, 13.5 GWh of renewable electricity was generated at the OMV and VERBUND photovoltaic park in Schönkirchen, Austria. The electricity was used for ongoing operations at Austrian E&P assets within the Energy business segment. In Romania, OMV Petrom’s Cosmești and Brădești solar parks produce nearly 4 GWh of solar energy annually, which will be used to supply electricity for its ongoing operations in its Romanian E&P assets. In addition, by the end of Q4/23, PV panels were installed at nearly 500 OMV and Petrom-branded filling stations. The electricity that will be produced from these installations annually is estimated at around 9 GWh.
To reduce our Scope 2 emissions, several Power Purchase Agreements (PPAs) with renewable energy providers were signed by the OMV Group in 2023. For instance, Borealis and Finnish energy company Fortum signed a long-term PPA to source renewable energy from two onshore wind parks. Starting mid-2024, 800 GWh of renewable power will be supplied to the Borealis production operations in Porvoo, Finland, over the course of eight years.

A cornerstone of our climate strategy is increasing the share of zero-carbon products in our product portfolio, as well as decreasing fossil fuel production and sales. Oil and gas production will be decreased to around 350 kboe/d by 2030. Growth will instead come from zero- and low-carbon products, such as geothermal energy, hydrogen, and Sustainable Aviation Fuels.
In our Energy segment, the Low Carbon Business has been working on expanding our photovoltaic asset base, investigating solutions for subsurface energy storage, e.g., with hydrogen, and looking at options to explore and commercially develop geothermal energy potential in the countries where we operate. These projects are mainly in the R&D or initial investment phase.
In 2023, OMV and Wien Energie joined forces to deliver the heating transition. As part of a joint venture called “deeep,” both companies are working closely to make deep geothermal energy a reality in the greater Vienna area. The aim is to develop deep geothermal plants with an output of up to 200 MW, thereby generating climate-neutral district heating for the equivalent of up to 200,000 Viennese households. The partners are also planning to implement up to seven deep geothermal plants in Vienna as part of drilling programs. The first deep geothermal plant is to be realized together by the partners in the joint venture. The plant will generate up to 20 MW of climate-neutral district heating – in combination with heat pumps from Wien Energie. Approval procedures are currently underway and drilling is due to start toward the end of 2024. The plant is scheduled to go into operation in 2027. In addition, OMV acquired a 6.5% stake in Canadian privately owned Eavor Technologies Inc. (“Eavor”). Eavor is the leading closed-loop geothermal energy solution developer worldwide. OMV and Eavor also entered a commercial agreement to pursue large-scale deployments of Eavor-Loop™ technology in Europe and beyond. OMV’s initial focus will be on the deployment of Eavor-Loop™ in Austria and Germany.
OMV Petrom and Complexul Energetic (CE) Oltenia will begin the construction of four solar parks, which will provide a combined capacity of approximately 450 MW. The total investment required for the establishment of these four photovoltaic parks exceeds EUR 400 mn, with 70% of the funding coming from the Modernization Fund. The PV parks will be built in Ișalnița, Tismana, Roșia, and Rovinari, on the sites of the former mining operations managed by CE Oltenia. Based on current estimates, the PV parks should supply electricity to the national energy system from 2024 onward. In addition, OMV Petrom has signed an agreement to acquire a number of projects for the construction of solar parks in Teleorman county. The projects will go into the execution phase by the second quarter of 2024 and, with a total power output of 710 MW, will supply enough power for 280,000 Romanian households annually.
We are contributing to the creation of a sustainable energy system by identifying and maturing solutions, with a strong focus on markets that are hard to electrify such as heavy road transport or air travel. What these markets have in common is that they need an energy-dense yet climate-friendly fuel with the lowest possible downtime. Our portfolio focuses on waste-based and advanced biofuels, hydrogen, and e-fuels, as these offer the potential to utilize synergies with existing refinery assets and competences for a feasible scale-up and roll-out of green technologies. In 2023, OMV was already delivering SAFs to Air France-KLM, Ryanair, and the Associated Energy Group, LLC (AEG Fuels) at Vienna airport. Additional Memorandums of Understanding (MoUs) for the intended offtake of SAFs were signed with Air France-KLM and Ryanair in 2023. The total amount of intended SAF offtake between 2023 and 2030 is up to 160,000 t for Ryanair, up to 185,000 t for Wizz Air, up to 300,000 t for Air France-KLM, and more than 800,000 t for the Lufthansa Group.
Our climate targets can only be achieved with considerable effort and capital allocation. The OMV Group has earmarked investments of more than EUR 13 bn by 2030 for this purpose, representing around 40% of organic CAPEX over that period. All business units will build on existing strengths and expertise to contribute to this transformation.

Business principles and social responsibility performance

Business ethics and compliance

OMV is a signatory to the UN Global Compact and adheres to the OECD Guidelines for Multinational Enterprises. OMV’s Code of Conduct and Code of Business Ethics publicly lay out our commitments to responsible and ethical business conduct. The Code of Conduct applies to all employees. Although we are headquartered in Austria – a country with high business ethics standards – we operate in several countries in the Middle East, North Africa, Asia-Pacific, the Americas, and Europe that are defined as high risk by the Transparency International Corruption Perceptions Index. We strive to avoid the risks of bribery and corruption that are specific to our sector. We also highly value our reputation. Therefore, our highest priority is ensuring uniform compliance with our business ethics standards wherever we operate. Compliance with ethical standards is a non-negotiable value that supersedes any business interest. Absolute commitment to this objective is embedded at all levels of OMV from top management to every employee. Our business partners are also expected to share the same understanding of and commitment to ethical standards. Every Company activity, from planning business strategy to daily operations, is assessed for compliance with ethical standards, such as the Code of Conduct and Code of Business Ethics.
A dedicated cross-regional compliance organization ensures that OMV standards are consistently met across the Group. In 2023, 9,285 OMV Group employees were trained in business ethics. In addition, OMV introduced a new Ethics & Integrity Policy that defines the principles of what it means to act ethically and with integrity. This policy aims to guide the way that business is conducted within OMV, what is considered acceptable or desirable behavior, above and beyond compliance with laws and regulations. The Ethics & Integrity Policy is supported by a newly established Ethics & Integrity Committee, which shall provide reassurance that the organization is living up to its ethical values and commitments.
The Integrity Platform provides an anonymous whistleblower mechanism for OMV employees and external stakeholders, such as suppliers. They can use this platform to report issues relating to corruption, bribery, conflicts of interest, antitrust law, capital market law, public procurement, environmental protection, product and food safety and consumer protection, corporate tax regulations, and data protection.

Supplier compliance

Implementing sustainable procurement means caring about the environmental, social, and economic impacts of the goods and services the Company intends to purchase. At OMV, we aim to foster innovation, maximize value contribution, and enable supply chain growth. OMV has a Code of Conduct in place that ensures that suppliers support OMV’s principles. It is of paramount importance to our organization to be fully compliant with all applicable legal requirements, as well as with our internal safety, environmental protection, and human rights standards while managing our supply chain. OMV has a process in place to ensure that existing and potential business partners sanctioned by the EU or international organizations, such as the United Nations, are not accepted as procurement partners. In 2023, OMV’s Corporate Procurement Directive was revised. Two of the main changes were the introduction of sustainability criteria as part of the commercial evaluation and sustainability embedded in the Supplier Relationship Management process. To ensure we have a standardized approach to payment conditions for our suppliers and contractors, we have 60-day standard payment terms stipulated in the Corporate Procurement Directive.
To mitigate supply chain risks including forced labor, slavery, human trafficking, and corruption, OMV imposes the legal requirements and internal rules and standards applicable to OMV on its suppliers. Our suppliers and supply chain partners are obligated to sign and fully comply with the content of the Code of Conduct. In addition, our suppliers must accept the General Conditions of Purchase, which further detail our business standards (e.g., labor rights), as an integral part of our contractual agreements. OMV reserves the right to terminate relationships with suppliers if non-compliance is discovered or not addressed in a timely manner.
The Supplier Relationship Management Framework was rolled out in 2023. As a result, sustainability is now part of supplier segmentation, supplier performance, supplier meetings, and supplier innovation. Supplier prequalification is part of precontractual activities, during which OMV collects information from a potential supplier for the purpose of evaluating compliance with our HSSE and other sustainability requirements. The goal of the prequalification process is to screen potential suppliers before bringing them on board or during the tender stage to ensure that only those suppliers who meet our HSSE and sustainability standards can be considered for future collaboration. Following prequalification, the procurement colleagues and business representatives select the best suppliers based on a predefined set of commercial and technical criteria during a tender process. In 2023, we continued to embed sustainability elements into sourcing activities (e.g., technologically innovative elements, carbon emissions, energy efficiency KPIs, CDP and EcoVadis score) during several pilot projects.
OMV conducts supplier audits as part of the prequalification process and/or during contract execution. The aim of the audits is to measure the performance of our suppliers and define actions that will enable them to optimize their performance and meet OMV requirements. During the audits, we pay special attention to the financial stability of our suppliers, their strategy and organization, supply chain, sustainability (e.g., human rights, carbon footprint management, environmental management, certifications, and social responsibility), and their cybersecurity performance. We also carry out annual subject-specific audits on topics such as process safety, quality, and efficiency. During the supplier audits, we place great emphasis on understanding not only the management approach to the topics within the scope of the audits (e.g., HSSE aspects), but also how the topics are understood and applied by the employees on site (e.g., through discussions with workers and managers).
Since 2021, OMV has been a member of Together for Sustainability (TfS). As a joint initiative and global network of 50 companies, TfS sets the de facto global standard for the environmental, social, and governance performance of chemical supply chains. The TfS program is based on the principles of the UN Global Compact and Responsible Care^®. Being a TfS member helps OMV to further embed sustainability into its day-to-day business operations and further cascade sustainability requirements within our supply chain.
We aim to continuously manage and decrease the carbon volume of our purchased goods and services. Only by working together with our suppliers will we be able to define joint low-carbon initiatives to continuously decrease the carbon emissions in the supply chain and meet our Paris Agreement commitments. As part of its CDP Supply Chain membership, in 2023 OMV invited 394 suppliers to respond to the CDP climate change questionnaire. Suppliers were selected based on spend, estimated carbon emissions volume, and the carbon intensity of the goods and services purchased from them. In addition to reporting their emissions, we asked the suppliers whether they have carbon reduction targets in place, and invited them to share with us any initiatives or projects to reduce carbon emissions in which they would like us to participate. 71% of responding suppliers have a climate target in place (vs. 75% in 2022).

Human rights

Human rights are universal values that guide our conduct in every aspect of our activities. Our responsibilities in the area of human rights include, but are not limited to, equality and non-discrimination, decent living wages, working hours, employee representation, security, primary health care, labor rights in the supply chain, education, poverty reduction, land rights, and free, prior, and informed consent. OMV respects and supports human rights as described in the Universal Declaration of Human Rights and in internationally recognized treaties, including those of the International Labour Organization (ILO). We have been a signatory to the UN Global Compact since 2003 and are fully committed to the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. We fully support the aims of the UK Modern Slavery Act 2015 and are committed to operating our business and supply chain free of forced labor, slavery, and human trafficking. OMV considers human rights to be an important aspect of our risk management approach, which is integrated into our decision-making processes. OMV recognizes its responsibility to respect, fulfill, and support human rights in all business activities and to ensure that OMV does not become complicit in any human rights abuses as defined under current international law.
We conduct human rights risk assessments at country level to identify and assess ongoing and emerging human rights impacts and the resulting potential risks relevant to OMV business activities in the country in order to prevent and mitigate human rights risks and impacts. A total of 7,124 employees received training on human rights topics through the e-learning tool and in-person training sessions in 2023 (2022: 4,254). As professional training is essential to ensure compliance with our human rights commitment, we have set ourselves the goal of training all employees in human rights topics by 2025. In addition, internal awareness campaigns on human rights were implemented. In 2023, 19 incidents of human rights grievances were reported (2022: 35).
In late July 2022, OMV’s subsidiary Borealis was confronted with reports of alleged human trafficking practices conducted by the main contractor (IREM) and their subcontractor on a propane dehydrogenation (PDH) plant construction site in Kallo, Belgium. The practices were reported to involve exploitation, inadequate compensation, lack of social security, and poor housing conditions. Since the allegation, Borealis has taken many steps to increase oversight of the PDH construction site in Kallo, Belgium, and advance its organizational set-up both in terms of competence and governance. For instance, Borealis invested in additional capabilities and capacities to reduce the risk of social misconduct and malpractice, such as setting up and implementing a Global Social Compliance Team, with one social compliance manager across the company and three regional social compliance managers. Borealis also implemented regular alignment meetings with the social inspectorate and work authorities in Belgium and Austria. Borealis has a zero-tolerance policy for social malpractice and misconduct. A management document was implemented in the Borealis Management System (BMS), stating the company’s social compliance ambition, the framework for identifying regulatory and social compliance risks, advice on designing and implementing regulatory and legal compliance processes and controls to mitigate such risks, and how to monitor and report the effectiveness of these controls. Borealis has also implemented stricter access checks at the site gates of its production locations in Austria and Belgium, combined with more frequent and risk-based checks.
The OMV Group always seeks to improve, and is strongly committed to further strengthening its processes and mitigation measures to prevent any maltreatment and disrespect of workers’ human rights in the supply chain. At corporate level, we analyzed the HSSE and Procurement directives for contractor management and prepared a detailed checklist for human rights compliance to be used at site level. The revised human rights e-learning refers specifically to human rights in business relations, and the OMV Group Human Rights Policy Statement details our human rights commitment related to labor rights and business partners in line with business best practice and international standards. The OMV Group Human Rights Policy Statement was approved by the Executive Board of OMV Petrom in February 2023, while Borealis signed off its Human Rights Policy Statement in October 2023, with formal approval from its CEO. In addition, individual monitoring initiatives were implemented at a local level throughout the Group to ensure our suppliers’ compliance with human rights.

Community relations and development

OMV maintains an active partnership with local communities in all countries in which the Company does business and is committed to adding value to these societies. As part of OMV’s stakeholder dialogue, we have implemented Community Grievance Mechanisms (CGM) at all operating sites. In 2023, OMV registered 732 external grievances (2022: 776) from the Community Grievance Mechanisms. All of the grievances were handled in accordance with OMV’s localized community grievance management procedures, which stipulate a stringent approach to systematically receiving, documenting, addressing, and resolving grievances in all of the countries where we operate.
OMV has set the goal of aligning the CGM system at all sites with the effectiveness criteria of the United Nations Guiding Principles. We are striving to achieve this target by conducting assessments that include reviews of management processes and consultations with internal and external stakeholders. The assessments result in recommendations and tailored action plans to improve grievance management at site level. The action plans are implemented by local management and monitored by headquarters. The sites already assessed represent 93% of all registered grievances at OMV in 2023.

Health, Safety, Security, and Environment

Health, safety, security, and protecting the environment are key values at OMV. The integrity of OMV’s operating facilities, loss prevention, proactive risk management, and environmental protection are essential for attaining OMV’s HSSE mission of “Committed to Zero Harm – Protect People, Environment, and Assets.”

HSSE Strategy

To achieve this mission, the OMV Group’s HSSE Strategy was updated in 2023 to support our company’s safe and sustainable transformation journey. As we become a company with a clear focus on circular economy solutions, we will expand our product portfolio and enter new businesses and markets. This brings with it new cultural perspectives, new technologies, new risks, and the need to meet new customer demands and growing environmental requirements. The HSSE Strategy focuses on the cross-functional goals of strong HSSE commitment and leadership, supplier and contractor management, and enhanced efficiency and effectiveness of HSSE processes. The strategic HSSE goals are:

_►HSSE culture: develop a company culture where HSSE shapes decision-making at every level
_►Contractor management: develop supplier and contractor management capabilities at every level
_►HSSE management system: enhance the effectiveness and efficiency of processes, regulations, and tools
_►Health: improve workability through integrated health management
_►Occupational safety: ensure the safety, physical and mental integrity of people
_►Process safety: maintain a strong focus on traditional risk control while preparing for new technologies
_►Security and resilience: protect personnel, assets, physical information, and our Company’s reputation.
_►Environment: protect people and nature and respect the planetary boundaries (limits of planet Earth)
_►Product stewardship: continuously improve the safety and sustainability of our products throughout their life cycle to contribute to a pollution-free environment

Health and safety

In 2023, the combined Lost Time Injury Rate (LTIR) for OMV employees and contractors was 0.87 (2022: 0.78), and our combined Total Recordable Injury Rate (TRIR) was 1.37 (2022: 1.23). Regrettably, one of our contractor employees in Romania lost their life in 2023 while working for OMV. The contractor colleague in Romania died from injuries sustained during a fire.
The business segment Chemicals & Materials reached a TRIR of 3.98 (2022: 2.85). The main contributors to this high TRIR are the growth project in Kallo with 28 total recordable injuries (TRI), Stenungsund with 7 TRI, and Porvoo with 9 TRI, the latter two both having had turnarounds this year. All incidents had low actual and potential consequences but became a trigger to roll out the “B-Safe” program, which involved 4,120 people taking part in training. This training is based on behavioral safety and safety leadership, with a three-day course for all leaders including top management and a one-day session for all other employees. A strong focus was on safety culture and risk awareness, and taking care of each other. Special attention was paid to contractor HSSE management and learning from past incidents so as to prevent recurrences and embed appropriate improvement measures. In 2024, we will continue, embed, and sustain the B-Safe program. In order to improve safety culture, every location has selected focus areas based on B-Safe participants’ feedback. In addition, using lessons learned from previous acquisitions, we have strengthened our approach to integrating newly acquired facilities by establishing a strong HSSE foundation from the start, combined with a two-year integration plan. Locations identified with lower safety performance based on trends have also established a specific “get well” plan on top of their B-Safe improvement plan to address specific local challenges, led and sponsored by Borealis’ top leaders. Our focus on the prevention of serious injuries and fatalities continues, including a Group-wide approach for working at height, rolled out as a result of the findings from the tragic incident in Grandpuits in 2022. Borealis has also developed a standard task risk assessment process and global confined space procedure to standardize minimum expectations when conducting this high-risk activity. 2023 was an excellent year in process safety with only four leaks of primary containments (LOPC), without consequence for people and assets. Every LOPC is one too many, so we will continue to build on our process safety journey focusing on leading indicators, Tier 3 and Tier 4 events, and particularly on corrosion under insulation, which poses a major challenge in aging facilities.
The HSSE performance of Fuels & Feedstock in 2023 was overshadowed by a tragic fatal work accident involving a contractor employee in Romania, as mentioned above. Significant effort was put into safety campaigns and risk awareness and prevention programs in order to establish a strong and positive safety culture. This was especially the case during the planned maintenance turnarounds that took place in the Petrobrazi and Schwechat refineries. The Fuels & Feedstock TRIR came in at 0.78, slightly improved compared with the previous year (2022: 0.82). Special emphasis was placed on findings and lessons learned from previous incidents, leadership engagement, and improved contractor management. The consistent implementation of the process safety road maps drives further process excellence.
The Energy division had a TRIR of 0.95, which was better than last year’s performance (2022 TRIR: 1.09). Under the motto “back2basics,” dedicated campaigns to increase management presence and visibility of operational sites were implemented in most of our locations in 2023. The reduction of incident frequency and severity shows that constant effort on management level in combination with cross-functional collaboration on sites are the key to maximizing performance. In addition, we encountered 18 High Potential Incidents (HiPo). Learning from these is very important and can prevent serious or fatal injuries. That is why all HiPo incidents were subjected to thorough incident investigations and measures were taken to prevent recurrence.

Process Safety and Contractor Management will remain top priorities in 2024 and we will continue our efforts to improve performance. We also commit to training all operational personnel (employees and contractors) in applying the Life-Saving Rules by creating dedicated Safety Centers. Our Life-Saving Rules are in line with the IOGP and the industry and must be complied with under all circumstances.

OMV Group safety performance
In mn hours worked
	2023	2022
Company
Lost-Time Injury Rate	1.04	1.13
Total Recordable Injury Rate	1.48	1.32
Contractors
Lost-Time Injury Rate	0.80	0.62
Total Recordable Injury Rate	1.32	1.19
Total (Company and contractors)
Lost-Time Injury Rate	0.87	0.78
Total Recordable Injury Rate	1.37	1.23

The health and well-being of employees are fundamental to the success of any company, as they serve as a foundation for ensuring employee productivity. OMV continued its long tradition of offering health and prevention programs, such as cardiovascular disease prevention programs, ultrasound checks and other voluntary health checks, vaccinations (especially against flu and in some countries COVID-19), and virtual health hours, such as ideas for a healthy work-life balance or first aid measures that go far beyond legal requirements.
Also in 2023, great effort went into important safety-related activities to reduce risks and reverse the negative trend we see in OMV as a lingering effect of the COVID-19 pandemic and a clear increase in industry activity with a shortage of qualified personnel exacerbated by the geopolitical situation:

_►We have rolled out our harmonized Life-Saving Rules (LSR) across the OMV Group. This simple set of rules helps prevent fatal and severe accidents and applies to all employees and contractors. During an intensive campaign with face-to-face workshops led by line management, all employees and contractor employees were trained. Furthermore, the LSR were presented and discussed regularly during awareness programs, workshops, management walk-arounds, and safety walks, as well as during various meetings. Practical LSR trainings will be continued and delivered systematically in the Safety Centers, for which the training concept and material have been fully reviewed and updated. Based on this, existing Safety Centers will be redeveloped, and new ones created in 2024.
_►All incidents at level 3 and higher plus HiPos were investigated, and lessons learned were communicated throughout the organization. Improvement initiatives were developed and closely monitored using our HSSE reporting tool.
_►To improve the incident investigation process and ensure that the new incident investigators get the right support, we launched an “Incident Investigators Community of Practice Experience Sharing” session across the whole OMV Group in 2023. This will be continued in 2024 on a regular basis.
_►In 2023, action close out focus audits were performed to ensure the continuous improvement process. The specific objectives were to audit the close out of actions resulting from incident investigations and to audit the sharing within the organization and with contractors of (technical/safety) alerts and lessons learned.
_►Contractor HSSE management is key to the OMV Group’s safety performance. We continued the training for beneficiaries and functional experts through e-learning sessions and webinars, and we updated the internal regulations framework based on practical experience. We also held strategic supplier meetings with prime contractors to share information, experiences, and expectations. A new quarterly experience exchange forum was established to support the business across the OMV Group with information and best practice sharing related to supplier and contractor management.
_►Global HSSE training for employees and managers was delivered in the form of face-to-face training sessions, and a basic course was also offered as an e-learning course consisting of 13 modules, available in English, German, and Romanian.
_►The leading process safety performance indicators (PSPI) were updated for the OMV Group, and a dashboard was developed for management information.
_►Periodic Group Process Safety Committee meetings with Executive Board member involvement took place, during which process safety performance, achievements, and challenges were on the agenda.
_►A register containing risk reduction measures identified in various process hazard analyses (PHAs), assessments, and safety studies was established in each operated production unit and was populated with data, which also included Borealis sites.
_►A cloud-based software tool for process hazard analyses, recommendation tracking, and workflows was rolled out at OMV.
_►We supported and followed up on the implementation of process safety road maps across OMV’s ventures, assets, and refineries. In our Integrated Risk Register, we continued to analyze and prioritize process safety risks to ensure that investments effectively lead to a significant reduction in risks.
_►The Group-wide process safety knowledge- and experience-sharing platform was continued, with quarterly half-day events where up to 200 individuals participate in virtual meetings and presentations, including contributions from senior management.
_►The OMV Group HSSE reporting tool was further developed. This is a key step in our ongoing harmonization and enables us to report in one single system across the OMV Group.

Security

Corporate Security monitored an unstable geopolitical environment in 2023 combined with complex new and ongoing regional conflicts, not only in the Middle East but also in Europe. This resulted in Corporate Security continuing to invest significant resources in ensuring resilience and security in areas that we had previously considered low risk, but without losing focus on assets located in the Middle East and North Africa. In addition to the challenges of operating securely in Yemen, Tunisia, and Libya, the enduring threat of terrorist attacks in Europe and elsewhere has not diminished. Political extremism, organized crime, and the increasing convergence of cyber risks with physical threats necessitated the Corporate Security department’s unrelenting focus on a robust yet flexible security strategy to enable OMV to continue operating in dynamic environments with asymmetric threats.
The OMV Group’s internal Security Management Standard lays out a comprehensive range of security regulations, plans, procedures, measures, and systems. The document utilizes the IOGP best practice guidelines, along with other industry best practice (ASIS and UK Security Institute), to enable the OMV Group to more effectively detect, deter, protect against, prevent, record, and investigate threats. Corporate guidelines on Issue Motivated Groups (IMGs) were updated, as was a position paper on Unmanned Aerial Systems (UASs).
Management and Due Diligence Processes: The OMV Group has a unique, agile, and proven security management system that is regularly reviewed, amended, or enhanced as the situation requires.
The philosophy of collecting security information and assessing it as a preventive security instrument remains a fundamental principle of the Corporate Security strategy. This concept affords us the ability to anticipate or instantly respond to a broad spectrum of geopolitical events, regional conflicts, and isolated incidents. Effective interaction with government and local security agencies further augments this approach with the reliable corroboration of facts on the ground.
OMV’s security risk assessment platform continues to provide real-time oversight of OMV’s asset risk exposure levels and can be quickly adjusted in response to geopolitical or security events, as well as enabling the dissemination of security-critical information in real time.
The OMV Group’s human rights policies and actions remain crucial to guaranteeing a secure and harmonious working environment. We provide human rights training to local security employees and third-party contractors. Effective community engagement at a local level remains a powerful security mitigation measure in regions experiencing conflict or instability. In high-risk countries, OMV’s local security and community engagement strategies are tightly integrated, promoting effective policies, mutual respect, and transparency with all local stakeholders. In turn, they contributed directly to OMV’s stable and secure operating environment in 2023. This cooperation encourages a precautionary approach to early detection and resolution of local grievances.
To ensure the effectiveness and appropriateness of security practices within OMV’s business units, the OMV Corporate Security function conducts regular audits. These occur annually for those ventures deemed high risk; for 2023 these were Libya, Tunisia, and Yemen. Two other major audits are conducted annually, with business units being chosen based on operational requirements. In 2023, the selected areas were OMV New Zealand and the Burghausen refinery and associated tank farms at OMV Germany.
Terms of Reference are agreed with the business unit prior to commencing the audit, a thorough review then takes place including site visits, interviews, document analysis, and observations. An audit report is then drafted, shared, agreed, and then published. The report will include SMART actions, with the entire process being tracked via OMV’s HSSE reporting tool.
The Corporate Security department continued to deliver operational support to OMV ventures globally, as well as surge capacity during security challenges. In high-risk countries, OMV also utilized dedicated Country Security Managers and Asset Protection Experts on site to enhance security via additional and, where appropriate, local expertise.
In 2021, the OMV Executive Board took the decision that OMV would join the Voluntary Principles on Security and Human Rights (VPSHR), if feasible. This set of tools provides guidance on risk assessment, public safety and security, human rights abuses, and the interaction between companies and private and public security. OMV is committed to upholding human rights in all of its activities. In 2023, OMV Corporate Security completed its application to VPSHR and attended its annual conference in London. OMV is currently awaiting the results of its application. OMV will continue its engagement with the VPs, aiming to move from engaged membership to participant membership.

Environmental management

OMV’s transformation into a company with a clear focus on circular economy solutions and low-carbon energy is driven by the aim to protect people and nature and to respect the limits of planet Earth. As this transformation must go hand in hand with societies’ needs for secure and affordable energy and materials, we are at the same time striving to minimize the environmental impact of our existing operations through measures such as spill prevention, energy efficiency improvements, reduction of greenhouse gas (GHG) emissions and water withdrawals, and waste management. OMV strives to optimize processes, to use natural resources as efficiently as possible, and to reduce emissions and discharges to levels no longer considered harmful.
In 2023, there were four major hydrocarbon spills (level 3 of four; 2022: 2 spills). The total volume of hydrocarbon spilled was lower compared to the previous year. OMV continues to work on its oil spill response preparedness and capabilities.
Key environmental measures and achievements in 2023:

_►Water management plans have been established at our main operational sites to reduce water-related risks and ensure efficient and sustainable water use. At OMV Tunisia, we implemented improvement projects to reduce freshwater use and increase the safe reuse of wastewater.
_►At the Schwechat refinery, we succeeded in significantly reducing water consumption and emissions to air. More than 5% of the average annual water consumption has been saved, most of it through a new control concept for cooling water in a heat exchanger group in the ethylene plant.
_►At our FCC unit in the Schwechat refinery, the installation of an additional electrostatic precipitator module reduced dust emissions significantly.
_►At the Petrobrazi refinery, the tank modernization program continued in 2023 with the modernization of one volatile product tank and the commissioning of a new tank, according to best available technology, which will contribute to the reduction of volatile organic compound (VOC) emissions.
_►In 2023, OMV Petrom completed the surface abandonment of 656 wells and 46 facilities in the E&P division. A total of 168,882 t of contaminated soil was treated in our bioremediation plants, and 18,746 t of metal scrap was recycled by authorized companies.
_►An enhanced monitoring tool for spill prevention has been implemented at OMV Petrom. The industry-recognized digital well integrity tool was established to assess risks to the integrity of individual wells, prioritize inspections, and take appropriate mitigation actions. By the end of 2023, we had successfully completed the digitalization of 4,400 wells, which represents more than 58% of the total active wells in operation.
_►During 2023, Borealis continued its engagement in Project STOP, which aims to support cities in emerging countries in establishing cost-efficient, effective, and circular waste collection systems. By developing a blueprint and sharing its know-how, as many stakeholders as possible will be encouraged to replicate the holistic approach of Project STOP. The knowledge gained from the three city partnerships so far is now allowing the project to scale up across the Indonesian Regency of Banyuwangi. It will, positively impact the lives of up to two million residents by the end of 2026 by creating 1,000 full-time jobs and collecting 230,000 t of waste annually. In this context, Borealis has signed the UN Sustainable Ocean Principles and is a member of the UN Global Compact. For more information, visit the Project STOP website at www.stopoceanplastics.com.
_►As part of its commitment to achieving zero pellet losses in operations and the supply chain, Borealis has met all requirements to fully comply with the Operation Clean Sweep® standard and consequently put in place a comprehensive set of on-site measures that aim to prevent and respond to pellet spills, should they occur. After carrying out extensive third-party audits that comply with the Operation Clean Sweep® standard in December 2023, the first two Borealis locations achieved the Operation Clean Sweep® Certificate. Borealis aims to have all of its polyolefin locations certified according to Operation Clean Sweep® by the end of 2024.
_►The full impact of the WGC BREF (Common Waste Gas Management and Treatment Systems in the Chemical Sector) has been assessed in all locations, which resulted in an action plan to become fully compliant in the next few years.
_►We continued to work on improving our impact on nature. To achieve this, we apply the mitigation hierarchy in our projects with the following steps: Avoidance, Minimization, Restoration, Offset, and Compensation. In 2023, we initiated a Group-wide project to establish a nature and biodiversity framework for the OMV Group, as part of which we are applying the Taskforce on Nature-related Financial Disclosures’ (TNFD) approach to locate, evaluate, assess, and prepare (LEAP) to identify priority sites, evaluate impacts and dependencies, assess risks and opportunities, and prepare to respond to and to report on material nature-related issues.
_►OMV works locally with third parties on restoration and rehabilitation projects. For example, in 2023, we supported the following biodiversity-related projects in New Zealand: the Moawhitu lake and wetland regeneration project, the partnership with the Rotokare Scenic Reserve Trust, creating a predator-free reserve for the endemic hihi bird, and the partnership with the local hapū at Pohokura to restore and protect the wetlands on site.

Employees

We know that it is the combined 20,600 employees of OMV who turn the Group’s strategy into results and success. We are proud of what we have achieved together. Trust and pride in the organization fuel our employees’ energy and determination to tackle challenges and to focus on innovative solutions to make us even stronger.

OMV’s People & Culture Strategy

We developed a Group-wide People & Culture Strategy, which fully supports the transformation of OMV. At the core of the People & Culture Strategy is our purpose, i.e., “Re-inventing essentials for sustainable living” and four strategic drivers:

_►Employee Experience
_►Growing Talent
_►Organizational Evolution
_►New Ways of Working

Highlights of 2023

Following the announcement of the OMV Group’s Strategy 2030, all Human Resources (HR) functions Group-wide were renamed People & Culture (P&C) in 2022. The aim of this department is to fully support the OMV Group’s Strategy 2030 by prioritizing key aspects that enable us to unlock our organization’s full potential.
In March 2022, our Group-wide purpose, “Re-inventing essentials for sustainable living,” was launched. In support of our purpose, in May 2023 we launched our new OMV Group Values “We care | We’re curious | We progress.” Our Values were defined based on the contributions of more than 13,000 employees and leaders from across OMV, OMV Petrom, and Borealis during a series of interactions, including the Pulse Check survey, leadership interviews, mass focus groups, and workshops, where a feedback tool based on artificial intelligence was used.
To ensure the transformation of OMV will be a success, we need to adapt our current methods to fit our new aspirations. By building on our capability, we are reinventing how we lead as well as our way of working. Therefore, linked to our Purpose and Values, we implemented Group-wide Transformational Leadership Competencies (TLCs) in 2023. Our TLCs define our expectations of our leaders and complete our transformational framework to successfully drive the implementation of our strategy. The four TLCs for all leaders across the Group are “Lead self,” “Grow people,” “Drive change,” and “Deliver impact.”
In September 2023, we ran our annual Group-wide Pulse Check survey for the second time as part of our employee engagement strategy, achieving an 82% participation rate, which represents a substantial 12% increase from 2022. The results showed an increase in all dimensions, with visible positive impact in key focus areas, including 69% on the understanding of our new Values. Conclusions and subsequent actions were agreed within business units by year-end and Q1 in 2024 for implementation in 2024.
Based on the Pulse Check results from 2022, a key focus was on enhancing transparency, accessibility, and collaboration within our organization. By promoting an environment of open communication and teamwork, we strive to break down silos and ensure transparency. In order to achieve that, all leaders were asked to hold meetings with their teams to further explain the OMV Strategy 2030 and encourage dialogue.
In 2023, we updated our leadership programs with our new Values and Transformational Leadership Competencies, which were designed to support both those employees who take on new management roles and current leaders who want to upgrade their basic knowledge of leadership. For identified talents at executive level, our dedicated Leading Ahead top talent program focusing on enhancing executive leadership skills was continued, as was our program for women in leadership positions. In terms of graduate development, we offered the second tailored graduate program in Fuels & Feedstock and continued with our long-standing Integrated Graduate Development (IGD) program in the Energy segment.
We were able to expand our learning opportunities through initiatives such as the Sustainability Academy, which was launched and offers our employees an ever-growing selection of curated learning material about sustainability-related topics. This supports our employees in expanding their knowledge on ESG topics and provides them with a foundation that is needed to understand their role in our journey to net zero. Focus topics for 2023 were ESG, Climate Change, Circular Economy, Sustainable Products, and Human Rights.
To support the upskilling of technical employees, we offered specific training initiatives, for example training on low-carbon energy, geothermal, decision quality, and data science.

Number of training participants^1,2,3

	2023	2022
Austria	5,316	5,599
Romania/Rest of Europe	13,814	14,659
Middle East/Africa	779	664
Rest of the world	756	700
Total	20,549⁴	21,622

Money spent on training per region^1,2
In EUR
	2023	2022
Austria	4,012,063	3,435,294
Romania/Rest of Europe	6,703,411	5,670,768
Middle East/Africa	1,072,251	614,903
Rest of the world	504,914	369,132
Total	12,292,639	10,090,097

¹ Excluding conferences and training for external employees

²Excluding DUNATÁR, SapuraOMV, OMV Russia; DYM Solutions, mtm, Rialti, Renasci

³Number of employees who participated in at least one training session

⁴Total is less than the sum of the countries due to double count of expats

In 2024, we plan to introduce our new Employer Value Proposition (EVP). This will serve as a statement or framework that outlines what OMV stands for as an employer. It will highlight the unique qualities and benefits that we offer to our employees. Moreover, it will help us attract and engage potential candidates who align with our purpose and our OMV Group Values, and the opportunities we provide.
Following the rollout of our Transformational Leadership Competencies in 2023, a transformation leadership program will be offered, reflecting our new Values and enabling leaders to develop their leadership style.

Diversity

In 2023, the OMV Group continued its commitment to fostering Diversity, Equity, and Inclusion (DEI) within the organization. Building on the foundation laid in 2022 with the launch of the Group-wide DEI strategy for 2030, the OMV Group took significant steps to further embed these principles in its corporate culture.
The OMV Group further strengthened its DEI strategy by establishing a governance framework in 2023. The structure includes five volunteer-based workstreams, led by employees across OMV, OMV Petrom, and Borealis. These dedicated workstreams focus on gender, generations, parenting/caregiving, people with disabilities, and LGBTQI+ inclusion, thus ensuring holistic representation.
Our focus on diversity is also being actively nurtured throughout the organization today, supported by a range of training sessions, activities, and awareness campaigns. Throughout the International Women’s Week, themed #EmbraceEquity, two impactful events emphasized the distinction between equality and equity. We also received the “Family-Friendly Employer” award, underscoring dedication to work-life balance. A disability roadmap was developed following an audit by myAbility, an external auditor, with inclusion initiatives like hosting teenagers from a special needs school and participating in the International Day of People with Disabilities. Colleagues at OMV Petrom created a disability brochure, and the Works Council established a community for colleagues with disabilities and carers. Regarding LGBTQI+, the Ally Week in September promoted allyship and understanding through a panel discussion and community lunches. These initiatives demonstrate the OMV Group’s commitment to diversity, inclusivity, and fostering awareness.
OMV is committed to ensuring fair treatment and equal opportunities for all employees and has zero tolerance for discrimination and harassment of any kind. We have developed a Group-wide People & Culture Ethics Guideline, which gives more details on our clear position regarding non-discrimination in the workplace. In accordance with this guideline, we aim to provide Group-wide complaint procedures and investigation principles for any misconduct in this regard.
As a result of these measures, the percentage of women in the Group is about 28% (2022: 27%). A total of 24.4% (2022: 21.6%) of employees in advanced and executive positions are female.

Employee key figures

At the end of 2023, the OMV Group employed 20,592 people. Compared with 2022, the number of employees decreased by 7.7% to 20,592, mainly as a result of the divestment of the Borealis nitrogen business.

Employees

		2023	2022
Employees by region
Austria		5,242	5,884
Rest of Europe		13,732	14,890
Middle East & Africa		630	583
Rest of the world		988	951
Total number of employees		20,592	22,308

Diversity
Female	in %	28	27
Male	in %	72	73
Female Executives¹	in %	18	20

Number of nationalities		94	101

¹ Executives include OMV Senior Vice Presidents, OMV Petrom and Borealis Group Board members

OMV Group Business Year

In 2023, OMV achieved the second-highest clean CCS Operating Result of EUR 6 bn in its history. Furthermore, cash flow from operating activities excluding net working capital effects remained significant, amounting to EUR 4.6 bn, and the organic free cash flow totaled EUR 2.3 bn. The leverage ratio was at the same level of 8% as in the previous year. This financial strength is an excellent basis for OMV’s further strategic development into a leader in sustainable fuels, chemicals and materials while committing to delivering attractive shareholder returns.

Business environment

Macroeconomy

Global GDP growth in 2023 is estimated to decelerate further, making it one of the weakest years ever excluding those with major recessions (2001–2002, 2009, 2020) as economies continue to recover slowly from the blows of the pandemic, Russia’s invasion of Ukraine, and the cost of living crisis. Nevertheless, despite the disruption in energy and food markets caused by the war, and the unprecedented tightening of global monetary conditions to combat the highest inflation for decades, the global economy slowed but didn’t stall. The latest IMF projection expects 2023 annual GDP growth to be just above 3% with a slowing trend across the year. This estimate is significantly below 3.5% and 3.7%, which are the averages from 2022 and 2010–2019 respectively.⁷
The economic slowdown was driven by multiple factors. Excess savings resulting from the pandemic-era fiscal stimulus have been in decline in developed economies, especially in the United States, implying fewer resources for households. International tourist arrivals are approaching prepandemic levels in most regions. As recovery in tourism progresses, the boost to growth is waning. Manufacturing has also been under pressure amid declines in industrial production and investment. Additionally, as a post-pandemic trend, consumerism has been shifting back to services, while tighter credit conditions and the cost of living crisis also weighed on manufacturing.

Growth also remained uneven, with growing global divergences. The slowdown is more visible in advanced economies, while emerging economies were in general more resilient. The United States was an upside outlier in the developed cluster, as resilient consumption and investment kept the economy in better shape. On the other hand, China was a negative surprise among developing nations amid growing headwinds from its real estate crisis and weakening confidence.

As the services sector recovered and then surpassed prepandemic levels, the strong demand from labor-intensive services also translated into tighter labor markets, and higher and more persistent services inflation.

There were also regional divergences in employment. Employment and labor participation rates are estimated to exceed prepandemic trends in advanced economies but to remain significantly below them in emerging markets due to more severe output losses and much weaker social protection.
The cost of living crisis remained a major economic issue for policymakers to solve despite global annual inflation falling from 8.7% in 2022 – the highest since 1996 – to 6.9% in 2023. The spike in inflation was driven by surging energy prices between the second half of 2021 and early 2023, which had spillover effects on prices throughout value chains, while the Russia-Ukraine war caused tightness on the food markets as well. Disinflation can also be associated with falling oil and gas prices, while food prices have been showing signs of moderation. Previously, supply chains were also under pressure due to temporary yet tectonic shifts in consumption patterns; however, normalization in this area contributed to cooling inflation.
Core inflation⁸ also moderated in 2023; however, it was stickier compared to headline figures. Demand eased as COVID-19-related fiscal support was winding down; however, the effect of past price shocks was built into short-term inflation expectations, keeping core inflation more rigid. In the United States, a tight labor market contributed to elevated core inflation.
In response to elevated inflation rates, central banks started aggressive monetary tightening. The ECB, FED, and the Bank of England increased policy interest rates by 100–200 basis points in 2023. In the current cycle, the US and UK policy interest rates increased by more than 500 basis points compared to earlier lows, while in the Eurozone the increase surpassed 400 basis points by the end of 2023. The only exception was the Bank of Japan, which has kept the reference interest rate at –‍0.1% since 2016. Countries are also at different points in their hiking cycles. Advanced economies, excluding Japan, are at or near the peak, while some emerging market economies have already started easing.
Higher interest rates started to impact the economy through monetary transmission mechanisms. Lending surveys in major economies show that access to credit became considerably more difficult. Tighter credit conditions weighed on housing markets, investment, and activity, more so in countries with a higher share of variable-rate mortgages or where households are less willing, or able, to dip into their savings. Firm bankruptcies increased in the US and the Euro Area, although from historically low levels.

Oil and gas

The European Union enacted energy-related sanctions against Russia in response to its invasion of Ukraine. As a result, seaborne crude oil and certain refined petroleum products could not be imported from Russia from December 5, 2022, and February 5, 2023, respectively. A temporary exception is foreseen for imports of crude oil by pipeline into those EU member states that, due to their geographical situation, suffer from a specific dependence on Russian supplies and have no viable alternative options. Moreover, Bulgaria and Croatia specifically will benefit from temporary derogations concerning the import of Russian seaborne crude oil and vacuum gas oil, respectively.
There is also a prohibition for EU vessels to transport Russian crude oil and petroleum products to third countries. Sanctions have also prohibited the related provision of technical assistance, brokering services, or financing or financial assistance. This ban doesn't apply if the crude oil or petroleum products are purchased at or below the oil price cap.
As a result, the European share in Russian seaborne exports fell to approximately 10%, from 50–60%, while China and India became the biggest importers of Russian crude.
The Brent price fell from USD 101/bbl in 2022 to USD 83/bbl in 2023. The crude oil price has been oscillating in the USD 75–100/bbl range since August 2022, the decline in the annual average being the result of the price spike in the first half of 2022 due to the Russia-Ukraine war. 2023 started with an optimistic economic sentiment driven by Chinese recovery as the last wave of COVID-19 restrictions was lifted, which also boosted oil demand. According to the IEA, year-on-year oil demand growth was 2.4 mbbl/d in 2023, 1.8 mbbl/d of which came from China. In the second half of the year, the economic outlook started darkening, affected by the negative economic impacts of rising interest rates and falling real disposable income due to high inflation worldwide. As a result, OPEC+ had to further scale back production in order to keep markets balanced.

Crude price (Brent) – monthly average¹

In USD/bbl 'Please unpack the Result.zip and reopen this file.'

¹ ICE Brent generic 1st contract monthly average

In 2022, natural gas was at the epicenter of attention on the energy markets with record high outright prices and volatility. Even at the end of 2022, there were days when day-ahead TTF prices were nearing EUR 150/MWh, affected by stock depletion concerns during winter, as Russian imports arrived to Europe only through Turkstream and in small amounts via Ukraine. However, EU-27 inventories ended the 2022–2023 heating season at 60%, which is significantly above the seasonal average, making restocking for the 2023–2024 heating season a lot more manageable. On the one hand, it was the result of lower than expected demand as the warm winter reduced the need for heating and saving measures were also introduced, while reduced Russian supply was partially offset by LNG, mainly coming from the US. In the later part of 2023, demand remained lower than in previous years; however, it was driven by weakening macroeconomic fundamentals, weighing on the industrial use of natural gas. In 2023, EU-27 natural gas demand fell 10% compared to 2022 and 19% compared to 2019 and 2021.
Due to softer fundamentals, prices retreated significantly from historic highs and spent most of the year in the EUR 30–50/MWh range. However, these values were still 50–100% higher compared to historical terms as Europe still needed to set prices higher compared to Asian buyers in order to attract import volumes.

Refining and petrochemicals

Refinery margins remained on a healthy level in 2023 as global refinery runs were unable to match demand growth, keeping crack spreads at an elevated level. However, there were different dynamics throughout the year, predominantly driven by diesel crack spread. The first part of the year showed a falling trend from an elevated starting position as rising supplies from the Middle East exerted pressure on diesel cracks. However, in the second half of the year, OPEC+ intensified crude cuts, resulting in lower availability of medium sour grades, which has high middle distillate yields. In addition, unplanned refinery downtime lifted crack spreads in general. Naphtha crack spreads were underperforming for most of 2023, as weak polyolefin margins weighed on demand from steam crackers.
High inflation and interest rates decimated consumer disposable income in 2023, which translated into lower demand growth for petrochemical products all over the world. Economic difficulties in China were especially concerning as the country accounts for one-third of global polyethylene demand, which is by far the largest ethylene derivative. In the meantime, the butadiene market was under pressure due to lower demand from the construction and automotive segments.

Financial review of the year

Key financials

		2023	2022	Δ
Sales revenues	in EUR mn	39,463	62,298	–37%
Clean CCS Operating Result¹	in EUR mn	6,024	11,175	–46%
Clean Operating Result Chemicals & Materials¹	in EUR mn	94	1,457	–94%
Clean CCS Operating Result Fuels & Feedstock¹	in EUR mn	1,651	1,810	–9%
Clean Operating Result Energy¹	in EUR mn	4,357	8,001	–46%
Clean Operating Result Corporate & Other¹	in EUR mn	–51	–50	–2%
Consolidation: elimination of inter-segmental profits	in EUR mn	–27	–43	38%
Clean CCS Group tax rate	in %	43	48	–5
Clean CCS net income¹	in EUR mn	3,421	5,807	–41%
Clean CCS net income attributable to stockholders of the parent^1,2	in EUR mn	2,593	4,394	–41%
Clean CCS EPS¹	in EUR	7.93	13.44	–41%

Special items³	in EUR mn	–668	861	n.m.
thereof Chemicals & Materials	in EUR mn	–214	582	n.m.
thereof Fuels & Feedstock	in EUR mn	146	426	–66%
thereof Energy	in EUR mn	–586	–111	n.m.
thereof Corporate & Other	in EUR mn	–14	–36	62%
CCS effects: inventory holding gains (+)/losses (−)	in EUR mn	–130	210	n.m.
Operating Result Group	in EUR mn	5,226	12,246	–57%
Operating Result Chemicals & Materials	in EUR mn	–120	2,039	n.m.
Operating Result Fuels & Feedstock	in EUR mn	1,671	2,438	–31%
Operating Result Energy	in EUR mn	3,771	7,890	–52%
Operating Result Corporate & Other	in EUR mn	–65	–86	24%
Consolidation: elimination of inter-segmental profits	in EUR mn	–31	–35	12%
Net financial result	in EUR mn	–70	–1,481	95%
Group tax rate	in %	58	52	6
Net income	in EUR mn	1,917	5,175	–63%
Net income attributable to stockholders of the parent²	in EUR mn	1,480	3,634	–59%
Earnings Per Share (EPS)	in EUR	4.53	11.12	–59%

Cash flow from operating activities	in EUR mn	5,709	7,758	–26%
Free cash flow before dividends	in EUR mn	2,682	5,792	–54%
Free cash flow after dividends	in EUR mn	349	4,333	–92%
Organic free cash flow before dividends	in EUR mn	2,272	4,891	–54%
Organic free cash flow after dividends	in EUR mn	–61	3,432	n.m.

Leverage ratio	in %	8	8	0
Capital expenditure⁴	in EUR mn	3,965	4,201	–6%
Organic capital expenditure⁵	in EUR mn	3,748	3,711	1%
Clean CCS ROACE	in %	12	19	–7
ROACE	in %	7	17	–11

Note: As of 2023, the Gas & Power Eastern Europe business was transferred from Fuels & Feedstock to the Energy business segment and is now reported together with Gas Marketing Western Europe under “Gas Marketing & Power.” For comparison only, 2022 figures are presented in the new structure.

¹ Adjusted for special items and CCS effects; further information can be found in Note 5 – Segment Reporting – of the Notes to the Consolidated Financial Statements

² After deducting net income attributable to hybrid capital owners and net income attributable to non-controlling interests

³ The disclosure of special items is considered appropriate in order to facilitate the analysis of the ordinary business performance. To reflect comparable figures, certain items affecting the result are added back or deducted. Special items from equity-accounted companies and temporary hedging effects for material transactions are included.

⁴ Capital expenditure including acquisitions

⁵ Organic capital expenditure is defined as capital expenditure including capitalized exploration and appraisal expenditure and excluding acquisitions and contingent considerations.

Notes to key financials

Clean CCS Operating Result

Special items and CCS effects
In EUR mn
		2023	2022	Δ
Clean CCS Operating Result¹		6,024	11,175	–46%
Special items		–668	861	n.m.
thereof:	personnel restructuring	–6	–8	27%
thereof:	unscheduled depreciation/write-ups	–44	58	n.m.
thereof:	asset disposal	208	724	–71%
thereof:	other	–827	87	n.m.
CCS effects: inventory holding gains (+)/losses (–)		–130	210	n.m.
Operating Result Group		5,226	12,246	–57%

¹ Adjusted for special items and CCS effects

Clean CCS Operating Result

In EUR mn

Operating Result adjusted for special items and CCS effects, details of which are depicted in the table on the left.
2023 performance:
With a result of slightly over EUR 6 bn, OMV achieved the second best of all time clean CCS Operating Result in 2023. It declined substantially from the 2022 result by 46% due to significantly lower market prices. All three business segments had a lower contribution compared to 2022 following a less favorable market environment.

Clean CCS Group tax rate

Group tax rate adjusted for special items and CCS effects. It represents the average rate at which the Group’s profit before tax is taxed.
2023 performance:
Coming in at 43%, the clean CCS Group tax rate decreased by 5 percentage points compared to 48% in the previous year, stemming from a decreased share in the overall Group profits of the Energy segment companies located in countries with a high tax regime.

Clean CCS net income attributable to stockholders of the parent

In EUR mn

Net income attributable to stockholders of the parent, adjusted for the after-tax effect of special items and CCS.
2023 performance:
The clean CCS net income attributable to stockholders of the parent in the amount of EUR 2.6 bn decreased markedly compared to EUR 4.4 bn in 2022 following the Operating Result.

Leverage ratio

The leverage ratio is calculated by dividing net debt incl. leases through equity plus net debt incl. leases.
2023 performance:
OMV’s strong financial performance resulted in maintaining the leverage ratio in 2023 at the same level as last year at 8%. This exhibits OMV’s financial strength despite ongoing investing activities and a record dividend paid to shareholders.

Clean CCS ROACE

The clean CCS ROACE (%) is calculated as Net Operating Profit After Tax (NOPAT – as a sum of the current and last three quarters) adjusted for the after-tax effect of special items and CCS, divided by average capital employed.
2023 performance:
Driven by the strong operational performance, OMV was able to deliver a clean CCS NOPAT of EUR 3.3 bn in 2023, compared to EUR 5.7 bn in 2022. Even though the average capital employed decreased also by 6%, the substantially lower clean CCS NOPAT led to a decrease in clean CCS ROACE from 19% in 2022 to 12% in 2023.

Cash flow from operating activities excl. net working capital effects

In EUR mn

Amount of cash the OMV Group generates through its ordinary business activities which excludes effects from net working capital positions
2023 performance:
Operating cash flow excl. net working capital effects came in at EUR 4.6 bn below the EUR 9.8 bn from 2022, due to the overall weaker market environment.

Organic free cash flow before dividends

In EUR mn

The organic free cash flow is cash flow from operating activities less cash flow from investing activities excluding disposals and material inorganic cash flow components (e.g., acquisitions).
2023 performance:
An organic free cash flow before dividends of EUR 2.3 bn was recorded in 2023, 54% below prior year’s level.

Organic capital expenditure

In EUR mn

The amount is defined as capital expenditure including capitalized exploration and appraisal expenditure, excluding equity injections into at-equity and fully consolidated companies, acquisitions, and contingent considerations.
2023 performance:
Organic capital expenditure was stable at EUR 3.7 bn as the increase in investments in Fuels & Feedstock and Energy was offset by a decrease in investments in Chemicals & Materials.

Capital expenditure (CAPEX)⁹

Total CAPEX

In EUR mn

Chemicals & Materials CAPEX in 2023 included mainly the construction of the new propane dehydrogenation (PDH) plant in Kallo, the planned turnarounds at the Schwechat (Austria) and Porvoo (Finland) sites as well as construction of the ReOil^® plant in Austria. CAPEX in 2022 was mainly related to investments in the construction of the PDH plant in Belgium, which included non-cash effective CAPEX related to leases in the amount of around EUR 0.5 bn. Additionally, 2022 was impacted by the equity injection into Borouge 4 LLC to finance the Borouge 4 project, the construction of the ReOil^® plant in Austria, and the turnaround at Stenungsund (Sweden).
The increase in Fuels & Feedstock CAPEX was predominantly driven by higher investments in the aromatic unit in Petrobrazi (Romania) and the co-processing plant in Schwechat (Austria).

Energy CAPEX in 2023 was primarily directed at projects in Romania, Norway, and the United Arab Emirates. In 2022, it was mainly related to the investments in Romania, New Zealand, and Norway.
The reconciliation of total capital expenditure to the investments as shown in the cash flow statement is depicted in the following table:

Capital expenditure
In EUR mn
	2023	2022	∆
Total capital expenditure	3,965	4,201	–6%
+/– Other adjustments	–14	–47	70%
– Investments in financial assets	–215	–490	56%
Additions according to statement of non-current assets (intangible and tangible assets)	3,736	3,664	2%
+/– Non-cash changes¹	–248	–721	66%
Cash outflow from investments in intangible assets and property, plant and equipment	3,487	2,943	18%
+ Cash outflow from investments, loans and other financial assets	635	736	–14%
+ Acquisitions of subsidiaries and businesses net of cash acquired	52	—	n/a
Investments as shown in the cash flow statement	4,174	3,679	13%

¹ Non-cash changes in 2022 were mainly impacted by new leases for the construction of the new propane dehydrogenation plant in Belgium by Borealis.

Notes to the Consolidated Statement of Cash Flows

Consolidated Statement of Cash Flows (summarized)
In EUR mn
	2023	2022	∆
Cash flow from operating activities excluding net working capital effects	4,638	9,843	–53%
Cash flow from operating activities	5,709	7,758	–26%
Cash flow from investing activities	–3,027	–1,966	54%
Free cash flow	2,682	5,792	–54%
Cash flow from financing activities	–3,771	–2,660	42%
Effect of exchange rate changes on cash and cash equivalents	–25	–72	–66%
Net increase (+)/decrease (–) in cash and cash equivalents	–1,114	3,060	n.m.
Cash and cash equivalents at beginning of period	8,124	5,064	60%
Cash and cash equivalents at end of period	7,011	8,124	–14%
thereof cash disclosed within Assets held for sale	91	35	162%
Cash and cash equivalents presented in the consolidated statement of financial position	6,920	8,090	–14%
Free cash flow after dividends	349	4,333	–92%

In 2023, cash flow from operating activities excluding net working capitaleffects declined to EUR 4,638 mn (2022: EUR 9,843 mn), mainly due to a less favorable market environment. Net working capital effects came in at EUR 1,071 mn predominantly as a result of a lower price environment. Cash flow from operating activities decreased by 26% to EUR 5,709 mn (2022: EUR 7,758 mn).
Cash flow from investing activities showed an outflow of EUR –3,027 mn in 2023, compared to EUR –1,966 mn in 2022. Cash flow from investing activities in 2023 included cash inflows of EUR 661 mn related to the successful divestment of the Borealis nitrogen business and EUR 272 mn from the divestment of OMV’s filling station and wholesale business in Slovenia. In addition, there were higher cash outflows from capital expenditures compared to 2022 and investments in short-term securities.
In 2022, cash flow from investing activities included inflows from the Initial Public Offering of Borouge PLC in the amount of EUR 745 mn, a partial loan repayment from Bayport Polymers LLC of EUR 602 mn, and the divestment of the retail network in Germany of EUR 432 mn. Moreover, cash flow from investing activities in 2022 included outflows from the capital contribution to Borouge 4 LLC of EUR –408 mn, as well as cash disposed of in the amount EUR –208 mn related to the loss of control of JSC GAZPROM YRGM Development.
Cash flow from financing activities showed an outflow of EUR –3,771 mn compared to EUR –2,660 mn in 2022, mostly due to an increase in dividend payments of EUR 874 mn to EUR 2,333 mn, plus higher bond repayments.

Notes to the Consolidated Income Statement

Consolidated Income Statement (summarized)
In EUR mn (unless otherwise stated)
	2023	2022	Δ
Sales revenues	39,463	62,298	–37%
Other operating income and net income from equity-accounted investments	1,068	2,512	–57%
Total revenues and other income	40,531	64,811	–37%
Purchases (net of inventory variation)	–24,222	–39,298	–38%
Production and operating expenses incl. production and similar taxes	–4,929	–6,205	–21%
Depreciation, amortization, impairments and write-ups	–2,463	–2,484	–1%
Selling, distribution and administrative expenses	–3,006	–2,689	12%
Exploration expenses	–222	–250	–11%
Other operating expenses	–462	–1,639	n.m.
Operating Result	5,226	12,246	n.m.
Net financial result	–70	–1,481	n.m.
Profit before tax prior to solidarity contribution	5,156	10,765	n.m.
Solidarity contribution on refined crude oil	–552	—	n.m.
Profit before tax	4,604	10,765	n.m.
Taxes on income and profit	–2,687	–5,590	n.m.
Net income for the year	1,917	5,175	–63%
thereof attributable to hybrid capital owners	72	71	1%
thereof attributable to non-controlling interests	366	1,470	n.m.
Net income attributable to stockholders of the parent	1,480	3,634	–59%
Effective tax rate (%)	58	52	6

Sales to third parties 2023 (2022)

In EUR mn if not otherwise stated (prior year)

Total not consolidated sales 2023 (2022)

In EUR mn if not otherwise stated (prior year)

Sales revenues decreased by 37% to EUR 39,463 mn mainly due to substantially lower market prices. For the sales split by geographical areas, please refer to the Notes to the Consolidated Financial Statements (Note 5 – Segment Reporting).
Other operating income decreased from EUR 1,644 mn in 2022 to EUR 742 mn. 2023 was mainly impacted by EUR 221 mn gains from divestment of OMV’s filling station and wholesale business in Slovenia. 2022 contained EUR 409 mn gains from the divestment of the retail network in Germany, EUR 341 mn gains from the successful listing of Borouge PLC on ADX (the Abu Dhabi Securities Exchange) and insurance income of around EUR 200 mn with respect to the incident in the Schwechat refinery in June 2022. For further details, please refer to the Notes to the Consolidated Financial Statements (Note 7 – Other operating income and net income from equity-accounted investments).

Net income from equity-accounted investments decreased from EUR 869 mn in 2022 to EUR 326 mn in 2023 mainly due to an impairment of exploration and appraisal assets included in OMV’s initial purchase price allocation of its share in Pearl Petroleum Company Limited and a lower contribution of Abu Dhabi Oil Refining driven by decreased refining margins.

Net expenses related to depreciation, amortization, impairments and write-ups remained almost unchanged compared to last year. 2023 was mainly impacted by write-ups of EUR 186 mn related to assets in Libya and gas storage in Germany. 2022 contained a write-up of EUR 266 mn of the nitrogen business unit of Borealis based on the new offer from AGROFERT, a.s. and a net impairment amounting to EUR 117 mn based on the impairment testing in the Exploration & Production portfolio triggered by updated commodity price assumptions. For further details, please refer to the Notes to the Consolidated Financial Statements (Note 8 – Depreciation, amortization, impairments and write-ups).
Other operating expenses decreased from EUR 1,639 mn in 2022 to EUR 462 mn in 2023. 2022 was mainly impacted by the deconsolidation of investments in Russia and remeasurement of the asset from reserves redetermination rights with respect to the acquisition of interests in the Yuzhno-Russkoye field.
Net financial result improved from EUR –1,481 mn in 2022 to EUR –70 mn in 2023. The negative net financial result in 2022 predominantly stemmed from the impairment of the Nord Stream 2 loan in the amount of EUR 1,004 mn, as well as EUR 370 mn negative fair value adjustment of investments in Russia. The net financial result in 2023 improved additionally due to a higher net interest result, partly offset by a deteriorated foreign exchange result. For further details please refer to the Notes to the Consolidated Financial Statements (Note 20 – Financial assets).
Solidarity contribution on refined crude oil in Romania was introduced by the law no. 119/2023 for the approval of the Government Emergency Ordinance 186/2022 on May 12, 2023. The law introduced the obligation to pay a contribution of RON 350 for each ton of crude oil processed during 2022 and 2023. In 2023, a solidarity contribution in the amount of EUR 552 mn was recognized for the quantities of crude oil processed during 2022 and 2023. For further details, please refer to the Notes to the Consolidated Financial Statements (Note 13 – Solidarity contribution on refined crude oil).
The effective tax rate increased from 52% in 2022 to 58% in 2023 and was mainly impacted by the solidarity contribution on refined crude oil in Romania (which decreases profit before tax but is a non-deductible expense for tax purposes). For further details on the Group’s effective tax rate, please refer to the Notes to the Consolidated Financial Statements (Note 14 – Taxes on income and profit).

Notes to the Consolidated Statement of Financial Position

Consolidated Statement of Financial Position (summarized)
In EUR mn
	2023	2022	Δ
		restated¹
Assets
Non-current assets	31,559	32,384	–3%
Current assets	17,432	22,803	–24%
Assets held for sale	1,671	1,676	–0%
Equity and liabilities
Equity	25,369	26,628	–5%
Non-current liabilities	14,826	15,607	–5%
Current liabilities	9,846	14,001	–30%
Liabilities associated with assets held for sale	622	626	–1%
Total assets/equity and liabilities	50,663	56,863	–11%

¹Comparative information dated December 31, 2022, has been restated. For further details, see the Notes to the Consolidated Financial Statements (Note 3 – Accounting policies, judgments, and estimates).

Non-current assets:

Intangible assets and property, plant and equipment in 2023 were impacted, among others, by significant investments, however, this was almost offset by the reclassification of SapuraOMV to assets held for sale (Note 22 – Assets and liabilities held for sale – in the Notes to the Consolidated Financial Statements).

Equity-accounted investments decreased by EUR 626 mn to EUR 6,668 mn impacted by EUR 786 mn dividend distributions and negative FX impacts, partly offset by positive results mostly from Borouge PLC and Abu Dhabi Oil Refining Company as well as EUR 94 mn capital contributions mainly to Bayport Polymers LLC. For further details, please refer to the Notes to the Consolidated Financial Statements (Note 18 – Equity-accounted investments).

Current assets:

Inventories decreased from EUR 4,834 mn in 2022 to EUR 3,529 mn in 2023 mainly impacted by lower prices. For further details please refer to the Notes to the Consolidated Financial Statements (Note 19 – Inventories).
Decrease in derivatives from EUR 2,377 mn to EUR 742 mn was mainly related to the gas business.
Assets held for sale and liabilities associated with assets held for sale:
In 2023, these positions were primarily impacted by the completion of the Borealis nitrogen business unit sale, which was partly offset by the reclassification of the SapuraOMV disposal group to “held for sale,” following the decision to enter into negotiations with interested bidders. For further details, please refer to the Notes to the Consolidated Financial Statements (Note 22 – Assets and liabilities held for sale).

Non-current liabilities:

Bonds decrease was mainly related to short-term reclassifications of EUR 750 mn. For further details, please refer to the Notes to the Consolidated Financial Statements (Note 26 – Liabilities).

Current liabilities:

Trade liabilities decreased from EUR 5,259 mn in 2022 to EUR 3,955 mn in 2023 as a result of both lower prices and lower quantities sold.
Bonds decrease was mainly related to short-term reclassifications of EUR 750 mn, which was more than offset by the repayments in the amount of EUR 1,250 mn. For further details please refer to the Notes to the Consolidated Financial Statements (Note 26 – Liabilities).
Income tax liabilities decrease of EUR 1,590 mn related mainly to OMV Norway and was due to lower taxable income and significant payments made during the first half of 2023 with respect to the previous year.

Financial liabilities from derivatives decreased from EUR 1,263 mn to EUR 386 mn, mainly related to the gas business.

Chemicals & Materials

In the Chemicals & Materials segment, OMV is one of the world’s leading providers of advanced and circular polyolefin solutions and a European market leader in base chemicals and plastics recycling. The Company supplies services and products to customers around the globe through Borealis¹⁰ and its two joint ventures: Borouge (with ADNOC, based in the UAE and Singapore) and Baystar (with TotalEnergies, based in the United States).

At a glance

		2023	2022	∆
Clean Operating Result	in EUR mn	94	1,457	–94%
thereof Borealis excluding JVs	in EUR mn	–74	967	n.m.
thereof Borealis JVs	in EUR mn	102	332	–69%
Special items	in EUR mn	–214	582	n.m.
Operating Result	in EUR mn	–120	2,039	n.m.
Capital expenditure¹	in EUR mn	1,345	1,896	–29%

Ethylene indicator margin Europe	in EUR/t	507	560	–9%
Propylene indicator margin Europe	in EUR/t	389	534	–27%
Polyethylene indicator margin Europe	in EUR/t	322	390	–17%
Polypropylene indicator margin Europe	in EUR/t	355	486	–27%
Utilization rate steam crackers Europe		80%	74%	5
Polyolefin sales volumes	in mn t	5.69	5.66	0%
thereof polyethylene sales volumes excl. JVs	in mn t	1.63	1.69	–3%
thereof polypropylene sales volumes excl. JVs	in mn t	1.86	1.84	1%
thereof polyethylene sales volumes JVs²	in mn t	1.28	1.25	2%
thereof polypropylene sales volumes JVs²	in mn t	0.92	0.88	4%

Note: Following the successful listing of 10% of the total issued share capital of Borouge PLC on June 3, 2022, Borealis now holds a 36% stake in Borouge PLC, thus lowering financial and operational contributions as of the date of listing.

¹ Capital expenditure including acquisitions

² Pro-rata volumes of at-equity consolidated companies

Financial performance

The clean Operating Result decreased substantially in 2023 to EUR 94 mn (2022: EUR 1,457 mn). This was mainly a result of the deterioration of the chemical sector caused by a global economic slowdown and a highly inflationary environment, which led to substantially lower olefin and polyolefin indicator margins, negative inventory valuation effects, and a lower contribution from Borealis JVs. In addition, the sale of the nitrogen business to AGROFERT, a.s. was completed in early July 2023, leading to a EUR 367 mn lower result contribution compared to 2022.
The contribution of OMV base chemicals declined mainly following substantially lower olefin indicator margins. The ethylene indicator margin Europe lessened by 9% to EUR 507/t (2022: EUR 560/t), while the propylene indicator margin Europe declined significantly, by 27%, to EUR 389/t (2022: EUR 534/t). In 2023, weak demand and ample supply weighed on olefin contract prices, while propylene contract prices also experienced downward pressure stemming from high refinery throughput in Europe. Easing naphtha prices provided some support to the olefin indicator margins.
The utilization rate of the European steam crackers operated by OMV and Borealis increased to 80% (2022: 74%). While 2022 was impacted by the planned turnarounds at the Stenungsund and Burghausen steam crackers and the reduced steam cracker utilization rate in Schwechat, 2023 was affected by the planned turnarounds at the Schwechat and Porvoo steam crackers.
The contribution of Borealis excluding JVs came in considerably lower in 2023 at EUR –74 mn (2022: EUR 967 mn). Substantially lower olefin and polyolefin indicator margins, the absent contribution from the nitrogen business due to the divestment in July 2023, which impacted the result negatively by EUR 367 mn compared to 2022, and negative inventory valuation effects were the main contributors to the sharp decline. Inventory valuation effects, excluding the nitrogen business, were around EUR 160 mn lower than in 2022, and had a negative impact on the result. The Borealis base chemicals business experienced a decline that was mainly caused by weaker olefin indicator margins, although a more positive light feedstock advantage and increased utilization of the steam crackers counteracted this to a certain extent. The polyolefin business experienced a substantial decline amid the persistent weak market environment in Europe, leading to considerably lower polyolefin indicator margins and negative inventory valuation effects. A less favorable product mix as well as higher fixed costs due to the inflationary environment also impacted the result negatively. The polyethylene indicator margin Europe decreased by 17% to EUR 322/t (2022: EUR 390/t), while the polypropylene indicator margin Europe came down by 27% to EUR 355/t (2022: EUR 486/t). In 2023, polyolefin indicator margins decreased on the back of the global economic slowdown and inflationary pressure on customers. In addition, increased availability of imported volumes into Europe put pressure on margins. As a consequence, realized margins for standard products declined markedly. In contrast, realized margins for specialty products increased slightly. Polyethylene sales volumes excluding JVs declined by 3% while polypropylene sales volumes excluding JVs increased marginally, by 1%, compared to 2022. The decrease in sales volumes stemmed predominantly from the energy and health care industries, while the mobility industry experienced a slight increase. The sale of the nitrogen business to AGROFERT, a.s. was completed in early July 2023. The nitrogen business contributed EUR 339 mn to the result in 2022, while it showed a loss of EUR –28 mn in 2023.
The contribution of Borealis JVs, accounted for as OMV’s share of clean net income of the at-equity consolidated companies, declined to EUR 102 mn (2022: EUR 332 mn) following a lower contribution from Borouge and the more negative contribution from Baystar. Polyethylene sales volumes from the JVs increased slightly by 2% compared to 2022, while polypropylene sales volumes from the JVs grew by 4%. The Borouge result declined primarily due to a weaker market environment in Asia. OMV’s reduced share in Borouge following the successful listing of 10% of Borouge’s total issued share capital on June 3, 2022, also lowered financial and operational contributions compared to 2022. The pricing environment in Asia weakened compared to 2022, as new polyolefin production capacities came online amid muted Asian demand. Borouge recorded slightly higher sales volumes in 2023. At Baystar, polyethylene sales volumes saw a minor increase compared to 2022, which was also attributable to the ramp-up process for the new polyethylene unit Bay 3 in Q4/23. The Baystar ethane cracker recorded a low utilization rate due to operational challenges that continued throughout 2023. Combined with the weak market environment, increased costs due to the planned depreciation of the cracker and higher interest expenses and fixed costs resulted in a markedly negative result contribution from Baystar.
Net special items amounted to EUR –214 mn (2022: EUR 582 mn) and were mainly a result of impairments related to Borealis’ nitrogen business and Renasci N.V. Net special items in 2022 were mainly related to the successful listing of a 10% share in Borouge, leading to a gain from the disposal, and the write-up of Borealis’ nitrogen business. The Operating Result of Chemicals & Materials declined substantially to EUR –120 mn compared to EUR 2,039 mn in 2022.

Capital expenditure in Chemicals & Materials decreased to EUR 1,345 mn (2022: EUR 1,896 mn). Capital expenditure in 2022 included an equity injection to Borouge 4 of around EUR 0.4 bn and non-cash effective CAPEX related to leases in the amount of around EUR 0.5 bn, which were related to Borealis’ construction of the new propane dehydrogenation (PDH) plant in Belgium. In 2023, besides ordinary running business investments, organic capital expenditure was predominantly related to Borealis’ construction of the new PDH plant in Kallo, the planned turnarounds at the Schwechat and Porvoo sites, and the construction of the ReOil^® plant in Austria.

Business overview

In the Chemicals & Materials segment, OMV is one of the world’s leading providers of advanced and circular polyolefin solutions and a European market leader in base chemicals and plastics recycling. The Company supplies services and products to customers around the globe through OMV and Borealis and its two joint ventures: Borouge (with ADNOC, based in the UAE and Singapore) and Baystar (with TotalEnergies, based in the United States). The segment comprises the production of base chemicals integrated with OMV operated refineries in Austria and Germany, the Borealis business of base chemicals and polyolefins, and the joint ventures.
OMV announced in July 2023 that it had decided to pursue negotiations with ADNOC on a potential cooperation regarding their polyolefins businesses. Such cooperation would include a potential combination of the Borealis and Borouge businesses as equal partners under a jointly controlled, listed platform for potential growth acquisitions to create a global polyolefin company with a material presence in key markets.

Base chemicals

Base chemicals are building blocks for the chemical industry and are transformed into plastics, packaging, clothing, and many other consumer products.
While the refinery-integrated, OMV operated steam crackers in Schwechat and Burghausen mainly use naphtha as a feedstock, the steam crackers operated by Borealis in Stenungsund and Porvoo are highly flexible on the feedstock they use, employing naphtha, ethane, propane, butane, or any LPG mix. In Kallo, Borealis runs a propane dehydrogenation unit based on 100% propane feedstock.
The OMV Group produces base chemicals such as olefins (ethylene, propylene, butadiene, and high-purity isobutene) and aromatics (benzene and phenol).

_►Ethylene and propylene are important chemical building blocks for producing polyolefins (polyethylene and polypropylene), which are in turn used to manufacture a wide variety of consumer and industrial products.
_►Aromatics such as benzene are used as starting materials for heat insulating materials and consumer products, including clothing, pharmaceuticals, cosmetics, computers, and sports equipment.
_►C4s (e.g., butadiene and butene) are used in a variety of applications, with butadiene primarily used in manufacturing synthetic rubber, making it a fundamental material for the tire and automotive industries. Butenes are used in specialty chemicals, such as oxo-alcohols for plasticizers and polyols for coatings and synthetic lubricants.
_►High-purity isobutene is a feedstock for key chemical products like adhesives, lubricants, and vitamins.
_►Phenol and acetone are sold mainly to the polycarbonate and epoxy resin industries. Phenol is also used in phenolic resins and in caprolactam. Acetone is also an ingredient in solvents and MMA for PMMA (plexiglass).

Even though OMV’s European crackers were running at higher utilization rates than Europe’s average, base chemicals results were burdened by an economic downturn in Europe. The overall European performance for the year remained weak in terms of volumes and margins, falling below last year’s levels due to subdued demand throughout the supply chain from olefin to derivatives. OMV’s Profit Improvement Program partly compensated for the margin and volume shortfall. The gap between the price of ethylene and propylene widened from 2022 to 2023, as refinery throughput remained high on healthy fuel margins. While chemical demand weakened further, new capacities coming online globally created additional pressure. Moreover, in comparison to 2022, the European cracker turnaround season in 2023 turned out to be very moderate and had less impact than usual on available production capacities.
The propane dehydrogenation (PDH) margin came in low at the beginning of 2023 as a result of higher demand for propane in the winter season. Propane prices weakened in comparison to naphtha prices due to lower demand throughout the year, leading to a positive impact on PDH margins. Toward the end of 2023 PDH margins continued to be healthy, driven by high propane storage levels and a mild winter.
The butadiene indicator margin declined to historically low levels this year as a result of weak demand. Even though car sales were higher than in 2022, the tire replacement rate remained below historic averages. In December 2023, OMV and Synthos signed an MoU for the supply of sustainable butadiene for the synthetic rubber used in tire manufacturing. The sustainable butadiene will be produced in the OMV steam cracker at the Burghausen refinery in Germany, which received full ISCC PLUS certification in 2022. OMV delivered the first batch of sustainable butadiene to Synthos in 2023.
The benzene indicator margin came in below last year’s levels on the back of weak European demand. The downturn in consumer activity in almost all sectors had a negative impact on the industry.

Polyolefins

Through its subsidiary Borealis, OMV is the second-largest polyolefin producer in Europe and among the top ten producers globally. Borealis operates seven polyolefin plants located in Schwechat, Stenungsund, Porvoo, and Burghausen, where they are integrated with steam crackers, as well as in Beringen and Kallo, where they are integrated with the existing PDH facility, and in Antwerp. In addition, Borealis operates several compounding plants in Europe, the United States, South Korea, and Brazil.

The value-added polyolefin products manufactured by Borealis are the foundation of many valuable plastics applications that are an intrinsic part of modern life. Advanced Borealis polyolefins have a role to play in saving energy along the value chain and promoting more efficient use of natural resources. Borealis works closely with its customers and industry partners to provide innovative plastics solutions that create value in a variety of industries and segments. These solutions make end products safer, lighter, more affordable, and easier to recycle. In short: they enable more sustainable living. Borealis offers advanced polyolefins for virgin and circular economy solutions, servicing the following key industries: consumer products, energy, healthcare, infrastructure, and mobility.

The polyolefins market remained weak overall in 2023, but was temporarily bolstered from January to April by the spring turnaround season and optimism surrounding China’s post-COVID-19 reopening. Industry profitability plummeted in the summer months, with unprecedented levels of industry destocking due to underlying factors such as import pressure, high inventories, expectation of falling polyolefins prices, and the annual demand slowdown during the holidays. Industry profitability and operating rates fell to levels last recorded during the height of the global financial crisis of 2007–2008. While industry profitability recovered somewhat later in the year, it remained very weak.

Renewable and circular chemicals

Plastics continue to play a vital role in the economy and in our business, making our lives more efficient, convenient, and safe. Yet, when insufficient effort is made to recover and reuse plastics, most of them end up in landfill or incineration. The vision of a circular economy, where we optimize resource efficiency and reuse, recycle, and repurpose endlessly, is both a business imperative and an opportunity. Demand for recycled plastics is growing due to increasing public awareness of the importance of using resources sustainably to ensure a climate-neutral future.
The circular economy opens up new ways to reinvent the economy in the interest of preserving natural capital and minimizing waste. OMV and Borealis are pursuing various initiatives in mechanical and chemical recycling, Design for Recycling (DfR), and circular polyolefins that are manufactured with second-generation renewable feedstock. While mechanical recycling has proven to be effective and will likely remain the eco-efficient method of choice for the foreseeable future, chemical recycling will play an increasingly important role to complement it for hard-to-recycle materials and for achieving virgin-grade properties.
Borealis is cementing its position as a fully customer-centric supplier of sustainable material solutions that add value to society and accelerate the transition to a circular economy. Long an industry front-runner in circularity, Borealis continues to lead by steadily increasing the share of circular products in its overall production output. These include recycled and renewable-based polymers in its Borcycle™ C, Borcycle™ M, and Bornewables™ grade portfolios, as well as the renewable hydrocarbons in the Borvida™ family of base chemicals.

Following the certification of the Borealis polyolefin compounding site in Monza (Italy) in July 2023, all Borealis polyolefin and polyolefin compounding sites in Europe have now been ISCC PLUS certified. This mark of quality ensures traceability of critical points along the supply chain by way of objective and third-party verification. Recycling facilities operated by Renasci in Oostende (Belgium), mtm in Niedergebra (Germany), and Ecoplast in Wildon (Austria) have also been ISCC PLUS certified.
Borealis was the first virgin polyolefins player in Europe to have entered mechanical recycling by acquiring mtm plastics in 2016, and Austria-based Ecoplast in 2018. 100% owned by the Borealis Group, the combined mtm and Ecoplast output will be augmented by high-quality volumes from the recent acquisition of Rialti. Based in the Varese area of Italy, Rialti specializes in the production of sustainable polypropylene (PP) compounds with a focus on mechanically recycled PP feedstock from post-industrial and post-consumer waste. Moreover, the signing of an agreement to acquire Integra Plastics AD, an advanced mechanical recycling player based in Elin Pelin (Bulgaria) took place in November 2023. Closing of this transaction is subject to customary regulatory approvals.

As the chemical recycling process valorizes residual waste streams that would otherwise be landfilled or incinerated, it is a valuable complement to mechanical recycling. The virgin-grade quality of monomers produced in the chemical recycling process makes them suitable for use in the production of high-end polyolefin applications in food-grade consumer packaging, infrastructure, and healthcare.
OMV is currently constructing a demo plant based on its proprietary ReOil^® technology to scale up its chemical recycling capacities. The plant has a capacity of 16,000 t p.a. and is scheduled to start up in 2024. The feedstock will consist mainly of polyolefins and will be sourced initially in Austria in close cooperation with local waste management companies. Examples of such plastic waste include food packaging, plastic cups, lids from takeout coffee, and confectionery packaging. In October 2023, OMV announced the final investment decision to build an innovative sorting plant developed by Interzero, Europe’s leading provider of circular economy solutions, to produce feedstock for chemical recycling. For that purpose, OMV and Interzero established a joint venture, in which OMV holds 89.9% of the shares and 10.1% of the shares belong to Interzero. OMV will invest over EUR 170 mn in building this state-of-the-art facility in Walldürn, southern Germany. With a processing capacity of up to 260,000 t of post-consumer mixed waste plastic per year, this fully automatic sorting facility will be the first of its kind to produce feedstock for OMV’s chemical recycling on a large industrial scale. Construction began in Q4/23 and production is expected to start in 2026. As a next step, OMV aims to develop a commercially viable industrial-scale ReOil^® plant at the Schwechat refinery with a processing capacity of up to 200,000 t/year.
In addition to ongoing collaboration with OMV centered on the patented OMV ReOil^® technology, Borealis is also working closely with its upstream partner Neste and its Neste RE™ technology to take the commercialization of chemically recycled plastics to the next level. The majority stake in Renasci N.V. acquired in late 2023 also gives Borealis ample access to chemically recycled feedstock for the grades in its ISCC PLUS-certified Borcycle™ C portfolio.

Fertilizers, melamine, and technical nitrogen products

In 2020, the OMV Group announced that it had started the divestment process for the nitrogen business unit, which includes fertilizers, technical nitrogen, and melamine. Borealis completed the sale to Czech-based AGROFERT, valuing the business on an enterprise value basis at EUR 810 mn, on July 5, 2023. The sale of the Company’s share in Rosier, which operates the production sites in the Netherlands and Belgium, to Yilfert Holding was completed on January 2, 2023.

Joint ventures

Borouge (Borealis 36%, ADNOC 54%, free float 10%)

Established in 1998, Borouge is a true success story of the long-term partnership with ADNOC. The joint venture has successfully combined the leading-edge Borstar^® technology with competitive feedstock and access to growing Asian markets. Borouge runs ethane-based steam crackers with a capacity of 3.6 mn t p.a. and an olefin conversion unit, converting ethylene into propylene, with a total capacity of around 0.8 mn t p.a. In addition, Borouge operates polyolefin plants with a total production capacity of 5 mn t p.a., thereof 2.7 mn t of polyethylene, 2.2 mn t of polypropylene, and 0.1 mn t of other products. In June 2022, Borouge was listed on the Abu Dhabi Securities Exchange (ADX) with 10% of the total issued share capital. Through Borouge, the Group’s footprint reaches all the way to the Middle East, the Asia-Pacific region, the Indian subcontinent, and Africa.

Baystar (Borealis 50%, TotalEnergies 50%)

The Baystar™ joint venture with TotalEnergies in Pasadena, Texas (US) reached a most significant milestone in October 2023 with the start-up of the new 0.6 mn t p.a. Borstar^® polyethylene unit called Bay 3. This growth project has brought the proprietary technology to the US in the most advanced Borstar^® plant ever built in North America. With the completion of the USD 1.4 bn unit, Baystar™ has more than doubled its production capacity. As a fully integrated petrochemicals venture, it will supply value-added specialty polymers to the booming energy, infrastructure, and consumer product sectors in North America. In addition to the new Bay 3 unit, Baystar™ comprises two legacy polyethylene (PE) production units, Bay 1 and Bay 2, and a 1 mn t p.a. ethane-based steam cracker, which started up in 2022 and is operated by TotalEnergies in Port Arthur, Texas.

Growth projects

Borouge

The largest growth project currently underway is Borouge 4, situated within the Borouge joint venture founded by Borealis and the Abu Dhabi National Oil Company (ADNOC) in 1998. Ground was broken in 2022 for the construction of Borouge 4, the new USD 6.2 bn facility at the existing complex in Ruwais (UAE). The project has an excellent safety record thus far, with a project TRI of 1 for over 27 mn man hours. Upon completion, which is expected for the end of 2025, the Borouge 4 project will add a 1.5 mn t ethane-based steam cracker and two additional Borstar^® polyethylene (PE) units with a total capacity of 1.4 mn t. The increased production capacity of advanced base chemicals and polyolefins that will be unlocked once Borouge 4 comes on stream will further enhance its role, as it will supply large volumes to customers in the Middle East and Asia as well as feedstock to the adjacent TA’ZIZ Industrial Chemicals Zone.

Kallo

Borealis is building a propane dehydrogenation (PDH) plant in Belgium to leverage expected growth in propylene demand in Europe. PDH is a vital process step in the production of propylene from propane. As one of the most important building blocks in the entire chemical industry, propylene is the raw material used to produce polypropylene (PP). The new facility is planned to have a production capacity of 0.7 mn t p.a. of propylene and start-up is expected to take place in 2025.

Innovation and new technologies

As a pillar of a strong foundation, innovation drives transformation in all areas of business activity. Making good on the corporate purpose of “Reinventing essentials for sustainable living” requires ongoing investment in R&D.
OMV’s proprietary ReOil^® thermal cracking technology was developed to meet the European Commission’s targets for the circular economy and to fulfill future packaging recycling quotas. The ReOil^® pilot plant at the Schwechat refinery, which has a capacity of 100 kg/h, has been recycling post-consumer and post-industrial plastics into synthetic crude oil using a pyrolysis process since 2018. This synthetic crude is then processed mainly into monomers and other hydrocarbons in the Schwechat refinery. OMV and Borealis are pursuing the clear ambition of becoming a leading player in chemical and mechanical recycling technologies. In October 2023, OMV and Wood, a global leader in consulting and engineering solutions in energy and materials markets, signed a mutually exclusive collaboration agreement for the commercial licensing of OMV’s proprietary ReOil^® technology, following a Memorandum of Understanding that was signed between the two parties in November 2022.
At Borealis, proprietary technologies such as Borstar^® form the basis for material solutions that help the industry address urgent societal and environmental issues such as decarbonization, the green energy transition, and waste reduction. Its suite of technologies enables Borealis to continually expand its offer of advanced specialty polyolefins so as to capitalize on promising market opportunities in lucrative niche applications in sectors like renewable energy, mobility, health care, consumer packaging, and the circular economy.
In the renewable energy sector, Borealis’ specialty product Borlink™ has supported global cable company Nexans in harnessing the power of the North Sea for its DolWin6 project. With the successful commissioning of the project in September 2023, 90 km of HVDC cable, supplied and installed by Nexans using the new generation Borlink™ LS4258DC, now connect 900 MW of offshore wind power to land in a reliable and efficient way, with only minimal losses. Following the first commercial application in Europe, Borlink™ LS4258DC has proven itself as a grade suitable for the largest-scale industrial projects in green energy.
Together with Tratos, a leader in electrical, electronic, and fiber optic cable technology, Borealis has successfully developed the first energy cable using Bornewables™ materials, a portfolio of value-added polyolefin products manufactured with renewable feedstock. Developed to meet sustainability and energy efficiency criteria, Tratos’ Bornewables™ solution reduces CO₂ emissions by 320 kg/km compared to fossil feedstock alternatives.
In the mobility sector, Borealis introduced and commercialized Daplen™ EG108AI, a specialty polypropylene compound intended for injection molding. This high-performance material was developed and validated according to leading OEM material requirements and was successfully positioned in door panels and interior trims of new electrified passenger car models. It provides superior surface aesthetics and odor emissions while excellently balancing impact strength and stiffness.
Borealis also launched a new class of engineering polymer produced from renewably sourced feedstock: Stelora™ opens up an abundance of options for technically advanced applications requiring high heat resistance, such as in e-mobility and renewable energy generation. The introduction of the Bornewables™ line Queo™, a portfolio of polymers and elastomers based on renewable feedstock, took place in the same month.
The EverMinds™ platform founded in 2018 is one way in which Borealis is spearheading the circular economy transition. By encouraging collaboration among value chain partners and other stakeholders in the name of circularity, Borealis is facilitating the development of a broad range of eco-efficient applications across diverse industry sectors. In 2023, highlights included the development of a new monomaterial pouch for dry foodstuffs containing over 95% PP and fully compatible with mechanical recycling. Bornewables™ grades were used to enhance the circularity of BOPP film used in flexible packaging, while Bornewables™ PP for absorbent hygiene products were able to help improve the ecological footprint of nonwovens.
Innovation at Borealis is global in scope. Nearly 600 people are employed in one of three innovation hubs: the Innovation Headquarters in Linz (Austria) and the innovation centers in Porvoo (Finland) and Stenungsund (Sweden). Borealis also operates Borstar^® pilot plants for PE in Porvoo, and for PP in both Porvoo and Schwechat (Austria). Catalyst manufacturing plants in Linz and Porvoo are augmented by a pilot facility in Porvoo.
Borealis continues to head the list of patent filers in Austria. In 2023, Borealis filed 128 new priority patent applications at the European Patent Office, the same number filed as in 2022. As of December 2023, the Borealis Group holds around 12,000 individual patents or patent applications, which are subsumed in approximately 1,500 patent families. The growing number of patents is proof positive of the Group’s dedication to Value Creation through Innovation.

Digitalization

Stepping up digitalization in Chemicals & Materials is one of the key drivers for transformation. Not only will it increase the Group’s productivity and improve the customer experience, it will also support the achievement of sustainability goals. In particular, digital solutions for the circular economy of plastics will become more important for the success of the Group’s carbon neutrality journey.
For that reason, Borealis decided in 2023 to merge the Borealis Digital Studio, its digitalization incubator organization, with the Group’s IT organization. The department has been renamed Digital Solutions and is now a united and empowered function, consisting of diverse, cross-functional teams of IT professionals with profound business, project management, and platform knowledge. The team supports the delivery of the Group’s business objectives, while putting the user at the heart of every solution, whether they are customers, employees, suppliers, or others.
During 2023, Borealis further developed Neoni, a digital tool that calculates CO₂ equivalent (CO₂e) emissions for its products. The materials covered a wide range, from virgin fossil feedstock-based solutions to renewable feedstock-based grades in the Bornewables™ portfolio of circular polyolefins and the Borcycle™ portfolio of mechanically recycled polyolefins. Neoni is the first digital tool in the industry to offer CO₂e emissions data down to the grade level for polyolefins, so Borealis’ customers can make informed decisions about which materials best meet their circularity goals. This is in line with Borealis’ EverMinds™ approach to accelerating circularity by working with its value chain partners. The carbon footprint Neoni calculates includes all CO₂e emissions generated up to the moment the product leaves Borealis’ facilities. The tool offers customers the option to calculate CO₂e emissions that take place from Borealis to their own operations, making it even more useful. Having introduced Neoni in 2022, Borealis rolled out the tool during 2023 and added data on hydrocarbons, in addition to polyolefins grades. Customers can access the results from the tool on the MyBorealis customer portal.
MyBorealis is the Group’s online platform for engaging with its polyolefins customers. It is designed to blend seamlessly with Borealis’ offline commercial processes in order to enhance the customer experience. The portal supports customer service representatives and sales managers in their daily interactions with customers and puts order management at the customer’s fingertips, along with a complete library of order, product, and complaint documentation. The application works 24/7, providing instant access to up-to-date information, with ordering fully integrated with Borealis’ supply chain and IT processes. The portal supports eight languages, allowing organizations in Europe, North America, and South America to use it. By the end of 2023, 26% of the business’ order volume was placed via the portal, up from 20% at the start of the year, with almost half of customers now active on MyBorealis. Borealis looks to develop new tools that improve safety performance and support its Goal Zero objective. The Group is also exploring new digital ways of working to increase efficiency in operations, focusing on asset intelligence, field excellence, data and connectivity, and value chain optimization. Various initiatives contribute to this, including:

_►a fit-for-purpose, sustainable, and affordable technical Data & Document Management System, which enables Operations to harmonize documentation, standardize work processes, and close gaps in current tools;
_►a Mobile Operator tool that gives operators a powerful, simple, and purpose-built solution to assist them in the field;
_►an initiative to compare different ways of detecting corrosion under insulation so as to determine the best technologies;
_►a project to support the Group’s sustainability strategy by implementing a tool to structure the validation process for energy data, reducing the risk of errors and ensuring data quality and traceability.

The Group also continued its Borstar^® Digital Twin program, a set of digital solutions for Borstar^® plants, rooted in Borealis’ process expertise and built on the Group’s successful applications such as its Proprietary Advanced Process Control and Operator Training Simulators. The goal is to capture Borealis’ unique know-how and utilize it in research engineering and production process improvements, while also providing a support and collaboration platform.
The program has now started delivering its first solutions, which aim to generate significant business value by improving operations in Borealis and its joint ventures, and by enhancing Borstar^® as a leading technology.
Last but not least, in the Leonardo program Borealis continues its SAP S/4HANA journey. The program reshapes our enterprise platform to enhance agility, simplicity, and transparency, thereby supporting Borealis’ global growth and sustainability strategy by moving our business technology solution to the next generation of SAP.

Fuels & Feedstock

OMV’s Fuels & Feedstock business refines and markets fuels. It operates three inland refineries in Europe and holds a strong market position in the areas where its refineries are located, serving a strong branded retail network and commercial customers. In the Middle East, it owns 15% of ADNOC Refining and ADNOC Global Trading.

At a glance

		2023	2022	∆
Clean CCS Operating Result¹	in EUR mn	1,651	1,810	–9%
thereof ADNOC Refining & Trading	in EUR mn	314	350	–10%
Special items	in EUR mn	146	426	–66%
CCS effects: inventory holding gains/losses (–)¹	in EUR mn	–126	202	n.m.
Operating Result	in EUR mn	1,671	2,438	–31%
Capital expenditure²	in EUR mn	984	800	23%

OMV refining indicator margin Europe based on Brent^3,4	in USD/bbl	11.70	14.71	–21%
Utilization rate refineries Europe		85%	73%	12
Fuels and other sales volumes Europe	in mn t	16.29	15.51	5%
thereof retail sales volumes	in mn t	5.62	6.16	–9%

¹ Adjusted for special items and CCS effects; further information can be found in Note 5 – Segment Reporting – of the Notes to the Consolidated Financial Statements

² Capital expenditure including acquisitions

³ As of Q2/22, the refining indicator margin reflects the change in the crude oil reference price from Urals to Brent at OMV Petrom.

⁴ Actual refining margins realized by OMV may vary from the OMV refining indicator margin due to factors including different crude oil slate, product yield, and operating conditions.

Financial performance

The clean CCS Operating Result decreased to EUR 1,651 mn (2022: EUR 1,810 mn), mainly as a result of lower refining indicator margins in Europe and the Middle East and higher fixed costs caused by turnaround and maintenance activities. This was partly offset by positive supply effects, a significantly higher commercial and retail result, and lower utilities costs.
At USD 11.7/bbl, the OMV refining indicator margin Europe was strong, however, it decreased from the exceptionally high level of the prior year of USD 14.7/bbl following lower cracks for middle distillates. In 2023, the utilization rate of the European refineries increased by 12% to 85% (2022: 73%), as 2022 was impacted by the turnaround and incident at the Schwechat refinery. The turnaround at the Petrobrazi refinery and the petrochemicals turnaround in Schwechat had a negative impact on the utilization rate in 2023. At 16.3 mn t, fuels and other sales volumes in Europe increased by 5% following higher commercial sales, partly offset by lower retail sales volumes caused mainly by the missing contribution from the divested Slovenian and German retail businesses. The retail business result increased mainly due to higher fuel unit margins, as the prior year was negatively affected by price regulations, and better performance of the non-fuel business. This was only partly offset by the higher fixed costs and the missing contribution from the divested retail business. The commercial business also showed a marked improvement due to stronger margins from higher achieved term prices and the absence of price caps. Sales volumes increased compared to the year before, which was negatively impacted by the Schwechat incident.
In 2023, the contribution of ADNOC Refining & ADNOC Global Trading, accounted for as OMV’s share of clean CCS net income of the at-equity consolidated companies, was once again strong but decreased by 10% to EUR 314 mn (2022: EUR 350 mn). This was caused mainly by moderately lower refining margins and a reduced ADNOC Global Trading contribution following weaker trading margins, strongly compensated by robust operational performance at ADNOC Refining and a partial reduction of a decommissioning provision.
Net special items amounted to EUR 146 mn (2022: EUR 426 mn) and were primarily related to the sale of OMV’s filling station and wholesale business in Slovenia in June 2023, partly offset by commodity derivatives. In 2022, special items were mainly related to the sale of the German filling stations. CCS effects of EUR –126 mn were recorded in 2023 as a consequence of declining crude oil prices. The Operating Result of Fuels & Feedstock decreased significantly to EUR 1,671 mn (2022: EUR 2,438 mn).
Capital expenditure in Fuels & Feedstock amounted to EUR 984 mn (2022: EUR 800 mn). Organic capital expenditure in 2023 was mainly related to the European refineries. The increase in capital expenditure in 2023 was predominantly due to cost inflation and higher investments in the aromatic unit in Petrobrazi and the co-processing plant in Schwechat.

Business overview

The Fuels & Feedstock business segment refines crude oil and other feedstocks. Its activities include Refining, Supply and Trading, Commercial and Retail. OMV owns a total refining capacity of around 500 kbbl/d, with three wholly owned refineries in Europe and a 15% share in ADNOC Refining & ADNOC Global Trading. In Europe, refining activities are highly integrated with marketing to serve a strong branded retail network and a broad base of commercial customers. Total fuels and other sales volumes in Europe amounted to 16.29 mn t in 2023. The strongly branded retail network comprising 1,666 filling stations accounts for around 35% of sales volumes, while commercial customers are mainly from industrial transportation and construction sectors and account for the remaining sales volumes.

Refining including product supply and sales

In 2023, refining margins fell compared to the previous year, albeit from record high levels. Last year’s margin was still exceptional compared to long-term history as the refining sector has been unable to fully rebuild inventory levels, especially diesel and gasoline, that were drawn in the second half of 2021 and early 2022, as a result of faster demand recovery than supply correction. Similarly to 2022, middle distillate crack spreads were the main drivers behind refining margin developments, as missing Russian diesel on European markets remained a key theme.

In the first quarter, diesel crack spreads were retreating from unseen peaks. However, by March 2023, they fell to the upper boundary of the 2015–2019 historical range for the first time since the Russia-Ukraine war started. This was due to abundant import volumes from the East of Suez reaching Europe, substituting sanctioned Russian molecules. Although refining margins bottomed in April, profitability remained robust.

From April to August, margins trended upwards as middle distillate crack spreads bounced back above USD 200/t as import pressure eased. OPEC+ had to deepen supply cuts in order to keep markets balanced. This resulted in lower availability of medium and heavy sour grades with high yields of middle distillates. Unplanned refinery downtimes also temporarily tightened supply availability in Europe. In the meantime, the gasoline crack spread was also trending higher from an already elevated base due to the specification change to a more expensive summer grade product and higher demand from the upcoming driving season. On the contrary, the naphtha crack spread was turning negative again as the weak economic sentiment took its toll on petrochemical demand and on olefin margins in the second and third quarters.
In the fourth quarter, refining margins fell compared to values from the end of summer, but they were still approximately double the historic averages. The reduction was mainly driven by the sharp drop in gasoline crack spread due to seasonal factors. Demand started to ease as the peak driving season came to an end, while the specification switch to winter-grade gasoline also weighed on crack spreads. However, the lower US refinery utilization put a floor under the crack spread. The diesel crack spread also trended lower as weaker natural gas prices disincentivized gas-to-oil switching for industrial players, while an overall weaker economic environment also weighed on demand. Recovery in the naphtha crack spread partially offset weaker road fuel crack spreads. The improvement was supported by tighter supply availability as storms in the Black Sea limited Russian exports. Meanwhile, alternative steam cracker feedstock was also constrained as low water levels in the Panama Canal hindered LPG trade flows and increasing heating demand also absorbed the increasing amount of liquified petroleum gas molecules. Nevertheless, petrochemical demand remained constrained amid persisting pressure from the weak macroeconomic environment.
OMV’s European refineries achieved a utilization rate of 85% in 2023, which was strongly influenced by the planned turnaround activities in the Schwechat and Petrobrazi refineries.
Despite the challenging environment caused by the unstable geopolitical situation, commercial sales were at a high level. In response to active market developments and prospecting, OMV's commercial products and services have been and will continue to be expanded, including the launch of new, more sustainable products. For example, OMV made first sales of HVO100 Diesel in the Commercial Road Transport (CRT) and reseller segment. Moreover, Sustainable Aviation Fuel (SAF) contributes to a reduction of CO₂ emissions of more than 80% through the processing of regionally sourced used cooking oil. Starting with the production and sale of Sustainable Aviation Fuel (SAF) in 2022, reaching 3kt sales in 2023, OMV plans to increase production year by year until 2030. Furthermore, OMV and Microsoft signed an agreement for the purchase of Sustainable Aviation Fuel certificates (SAFc), marking the start of OMV’s new offering for corporates and supporting the decarbonization of the aviation industry.

ADNOC Refining & ADNOC Global Trading

Alongside majority shareholder ADNOC (65%) and Eni (20%), OMV (15%) is a strategic partner in ADNOC Refining. In 2023, ADNOC Refining continuously operated at a very high utilization rate its major refinery in Ruwais, which is the world’s fourth-largest refining complex with integrated petrochemicals.

In 2023, the ADNOC Refining business benefitted again from a favorable margin environment, higher than the historic average, and improved operational performance alongside continuously optimizing the project portfolio including sustainable fuels and feedstocks. ADNOC Refining has also successfully started commissioning the CFP project (Crude Flexibility Project) and expects full commercial operation in 2024. With the same ownership structure as ADNOC Refining, ADNOC Global Trading (AGT) trades the majority of ADNOC Refining’s export volumes of products and supplies non-domestic crudes, condensates, and other liquids for processing.

AGT extends the successful Fuels & Feedstock business model into key geographic regions and to strategic partners. By continuously optimizing trade flows, it allows ADNOC Refining to access competitive non-domestic feedstock sources and implement best practices in areas such as risk management.
During 2023, AGT performance was strong, continuing to pursue its business ambition and substantially growing its third-party trading. Highlights for the year included the full operation of its recently opened subsidiary in Singapore and the cooperation with ADNOC with regards to the management of LPG trade flows.

Refining capacities 2023
In kbbl/d

Schwechat (Austria)	204
Burghausen (Germany)	79
Petrobrazi (Romania)	86
ADNOC Refining (United Arab Emirates)¹	138
Total	507

¹Equivalent to OMV’s 15% share in ADNOC Refining

Retail

The retail business achieved an outstanding result in 2023 and proved again to be a stable outlet for refinery products and a robust cash generator.

Total sales were 5.6 mn t, equivalent to approximately 6.9 bn l, strongly supported by recovering premium fuel trends and ongoing growth in the cards business. At the end of the year, the network comprised 1,666 filling stations (2022: 1,803), as divestments of OMV Slovenija and Avanti Germany were completed mid-year. OMV especially benefitted from its proven multi-brand strategy in this challenging price environment. The OMV brand is positioned as a premium brand, with VIVA representing a strong shop, gastronomy, and service offering, while the unmanned Avanti brand in Austria and the Petrom brand in Romania serve price-sensitive customer groups. Sales of OMV’s premium-brand fuel MaxxMotion have recovered despite the overall consumer price environment and contributed to the overall Retail result as a high margin product. The non-fuel business continued to grow and outperformed the year 2022. In Austria and Slovakia, a new third-party store partnership with REWE was successfully implemented and rolled out with over 50 rebranded shops in 2023. In multiple countries, the loyalty system has been successfully upgraded by utilizing state-of-the-art digital solutions and over 800,000 customers have been onboarded on the new platform this year.

OMV started with electromobility implementation and rollout at the end of 2022. By the end of 2023, OMV managed to deploy more than 100 ultra-fast EV chargers in Austria, Hungary, Romania, and Slovakia. In addition, OMV Petrom announced the acquisition of Renovatio Asset Management, the owner of Romania’s leading EV charging network, with more than 400 EV charging points in Romania and plans to increase to approximately 650 by 2026. The closing of the transaction is expected to take place in the first half of 2024.

Innovation and new technologies

OMV actively explores alternative feedstocks, technologies, and fuels with the aim of developing a well-diversified, competitive future portfolio. Efforts and resources focus on chemical recycling for post-consumer plastic waste. Additional attention is given to the production of conventional and advanced biofuels, synthetic fuels, and green hydrogen as future fuels for the hard-to-electrify part of the transportation segment, and as precursors for sustainable chemicals.
OMV is in the execution phase of the co-processing project at the Schwechat refinery. This technology enables OMV to process biogenic feedstocks (e.g., rapeseed oil) together with fossil-based materials in an existing refinery hydrotreating plant during the fuel refining process. This will reduce OMV’s carbon footprint by up to 360,000 t of CO₂ per year by substituting fossil diesel. Commercial operation is planned for 2024. In 2023, OMV continued with the pilot production of Sustainable Aviation Fuel (SAF) from another co-processing route in Schwechat, and the conversion of biogenic feedstock into high-value chemicals, such as ethylene, propylene, butadiene, and benzene, in the refinery in Burghausen.
In 2023, OMV also received its first deliveries of advanced bioethanol from South America as part of a multi-year supply agreement.
OMV is assessing the potential production of advanced fuels made out of residue or waste streams and producing advanced ethylene out of ethanol (1G or 2G) as a feedstock. The principal sources of advanced fuels include the biomass fraction of mixed municipal or industrial waste, straw, animal manure, or residues from forestry and wood processing, as well as waste streams. OMV’s glycerine-to-propanol pilot plant will be commissioned in 2024. OMV also collaborates with technology providers, industry partners, and academic institutions to assess the production of advanced biofuels and chemicals.
While the above-mentioned biogenic products will predominantly be sold as fuels initially due to a mandated market, they can also be used as chemical feedstock.
OMV and its partners are working on the UpHy project with the intention of producing green hydrogen for use in the refining process. OMV is building an electrolysis plant at the Schwechat refinery for this purpose, to be powered with renewable electricity in order to produce green & low carbon hydrogen. The green hydrogen will initially be used for fuel hydrogenation, including biofuels and SAF.
OMV is leading a publicly funded project to develop a new and efficient route from synthetic methanol to sustainable aviation fuels (M2SAF). In this M2SAF project, the basic proof of concept, catalyst, and process development takes place in a consortium of industry, SMEs, and academic partners. The target is to deliver a synthetic M2SAF fulfilling the current American Society for Testing and Materials (ASTM) certification requirements in a prescreening test in liter scale in the next one and a half years.

Digitalization

In 2023, digitalization of our refineries delivered a return of more than EUR 8 mn. For example, 6,000 working hours were saved from digitalizing workflows for operational tasks. In addition, the efficiency and safety of the turnaround activities at the Schwechat and Petrobrazi refineries have increased due to the use of digital visualization and mapping technologies including 2D GIS and 3D models, which help manage the complex interdependencies of turnaround planning and delivery. Next to efficiency and safety benefits, the portfolio of digital initiatives in our refineries contributed to more than 20 kt of CO₂ reductions in 2023.
The retail loyalty application delivery rollout was extended to Austria and Bulgaria, and during 2023 doubled its users to 850,000. Loyalty members visit filling stations more often and are more likely to buy premium fuels than non-members. In addition to the EV charger rollout, the end of 2023 saw the launch of OMV’s eMotion mobile app in Austria. Drivers of electric vehicles now have a user-friendly interface to locate nearby OMV operated charging stations and a wide range of roaming community partners, manage charging sessions, and securely and easily process payments.

Energy

The Energy segment consists of E&P, the Gas Marketing & Power, and the Low Carbon Business. E&P includes exploration and production of hydrocarbons. Gas Marketing & Power operates the full natural gas value chain, with natural gas sales, logistics, and the power business activities in Romania. The Low Carbon Business concentrates on geothermal energy, Carbon Capture and Storage (CCS), and renewable power.

At a glance

		2023	2022	Δ
Clean Operating Result	in EUR mn	4,357	8,001	–46%
thereof Gas Marketing & Power	in EUR mn	609	305	100%
Special items	in EUR mn	–586	–111	n.m.
Operating Result	in EUR mn	3,771	7,890	–52%
Capital expenditure¹	in EUR mn	1,582	1,464	8%
Exploration expenditure	in EUR mn	248	202	23%
Exploration expenses	in EUR mn	222	250	–11%
Production cost	in USD/boe	9.67	8.20	18%

Total hydrocarbon production	in kboe/d	364	392	–7%
Total hydrocarbon sales volumes	in kboe/d	345	379	–9%
Proved reserves as of December 31	in mn boe	1,136	1,037	10%

Average Brent price	in USD/bbl	82.64	101.32	–18%
Average realized crude oil price^2,3	in USD/bbl	79.21	95.04	–17%
Average realized natural gas price^2,4	in EUR/MWh	29.09	53.78	–46%

¹Capital expenditure including acquisitions

² Average realized prices include hedging effects.

³ As of Q2/22, the transfer price at OMV Petrom between the Energy segment and the F&F segment is based on Brent instead of Urals.

⁴ The average realized natural gas price is converted to MWh using a standardized calorific value across the portfolio of 10.8 MWh for 1,000 cubic meters of natural gas.

Financial performance

The clean Operating Result declined to EUR 4,357 mn in 2023 (2022: EUR 8,001 mn), primarily due to negative market effects of EUR 3,070 mn as a consequence of substantially lower oil and gas prices. Sales volumes decreased more than production due to the timing of lifting schedules in Libya, Norway, and Tunisia. Moreover the missing contribution from Russia following the change in the consolidation method affected the results. The result of Gas Marketing & Power doubled to EUR 609 mn thanks to a strong contribution of Gas Marketing Western Europe, where stronger results from storage and trading and less supply losses were only partly offset by a provision for impending losses associated with secured pipeline capacity and a lower LNG contribution. The contribution of Gas & Power Eastern Europe decreased due to lower natural gas margins, but was partially offset by a better power result driven by the reversal of a provision and higher sales volumes outside of Romania.
Net special items amounted to EUR –586 mn in 2023 (2022: EUR –111 mn), with the majority arising from valuation effects of commodity derivatives in the natural gas business and due to the net effect of impairments and impairment reversals of E&P assets, partially compensated for by positive inventory valuation effects and a write-up of a natural gas storage asset in Germany. Accordingly, the Operating Result declined to EUR 3,771 mn (2022: EUR 7,890 mn).
Production cost excluding royalties increased to USD 9.7/boe in 2023 (2022: USD 8.2/boe), mainly driven by inflationary cost pressure, the change in the consolidation method of Russian operations as of March 1, 2022, a positive one-off effect related to a tax audit at OMV Petrom in Q2/22, and lower production.
The total hydrocarbon production volume decreased by 27 kboe/d to 364 kboe/d, caused partly by the change in the consolidation method of Russian operations as of March 1, 2022. Natural decline and production shutdowns in Norway and natural decline in Romania also affected production. Production increased in New Zealand after the commissioning of new wells, in the United Arab Emirates after a revision of OPEC+ quota restrictions, and in Libya where production had been affected by force majeure in 2022.
Total hydrocarbon sales volumes dropped by a larger extent than total production volumes to 345 kboe/d (2022: 379 kboe/d). The deviation between production and sales volumes is explained by the timing of lifting schedules in Libya, Tunisia, and Norway.
In 2023, the average Brent price reached USD 82.6/bbl, a decrease of 18% compared to the prior-year period. The Group’s average realized crude price declined by 17%. The average realized gas price in EUR/MWh came down by 46% to EUR 29.1/MWh, while the benchmark price at the THE declined by 66%.

Capital expenditure including capitalized E&A rose to EUR 1,582 mn in 2023 (2022: EUR 1,464 mn), a consequence of a higher activity level. Organic capital expenditure was primarily directed at projects in Romania, Norway, and the United Arab Emirates. Exploration expenditure was EUR 248 mn in 2023, up by almost a quarter from the 2022 level. It was mainly directed at activities in Malaysia, Romania, and Austria.

Production

	2023				2022
	Oil and NGL	Natural gas¹		Total	Oil and NGL	Natural gas¹		Total
	in mn bbl	in bcf	in mn boe	in mn boe	in mn bbl	in bcf	in mn boe	in mn boe
Romania²	20.0	115.7	21.4	41.4	20.9	122.0	22.6	43.5
Austria	3.0	18.0	3.0	6.0	3.3	19.7	3.3	6.6
Norway	13.4	84.5	14.1	27.5	14.7	102.2	17.0	31.7
Libya	11.2	—	—	11.2	10.4	—	—	10.4
Tunisia	1.1	13.6	2.3	3.3	0.9	14.7	2.4	3.4
Yemen	0.1	—	—	0.1	0.6	—	—	0.6
Kurdistan Region of Iraq	1.0	17.4	2.9	3.9	1.0	15.8	2.6	3.6
United Arab Emirates	16.7	—	—	16.7	15.4	—	—	15.4
New Zealand	3.6	53.8	9.0	12.6	3.0	47.1	7.8	10.8
Malaysia²	0.7	57.9	9.7	10.4	0.6	60.0	10.0	10.6
Russia	—	—	—	—	—	37.7	6.3	6.3
Total	70.7	361.0	62.3	133.0	70.8	419.2	72.1	143.0

¹To convert natural gas from cf to boe, the following conversion factor was applied in all countries: 1 boe = 6,000 cf. In Romania, the following factor was used: 1 boe = 5,400 cf.

² The figures above include 100% of all fully consolidated companies.

Business overview

The Energy segment consists of E&P, Gas Marketing & Power, and the Low Carbon Business. Its E&P activities include exploration & appraisal, development, and production of crude oil, natural gas liquids, and natural gas.
Energy operates its natural gas business across the value chain, from the wellhead to the end customer, with a fully integrated natural gas sales and logistics business. It also includes power business activities and a gas-fired power plant in Romania.
Energy plays a key role in developing the sustainable resources for the future. The Low Carbon Business concentrates on geothermal energy, Carbon Capture and Storage (CCS), and renewable power solutions.
In 2023, Energy launched the SPARK program with the aim of delivering sustained cash flow improvement. In three months, over 500 SPARK initiatives were generated and included in the Energy Business Plan. The Energy Free Cash Flow improved materially in 2023 due to successful SPARK initiatives. From 2024 onwards, that improvement is expected to increase.

E&P business

The key strategic focus of the E&P business remains to increase the share of natural gas over that of crude oil and reduce carbon intensity across the portfolio. In 2023, E&P progressed well with its major natural gas development projects: Neptun (Romania), Jerun (Malaysia), and Berling (Norway).
Total average hydrocarbon production came in at 364 kboe/d for 2023, with a natural gas share of around 47%.
A key element in OMV’s strategy in the Energy segment is to actively manage and optimize the upstream asset portfolio for the three core regions, Central and Eastern Europe, Middle East and Africa, and North Sea. In this context, on February 27, 2023, OMV announced the start of the sales process for the divestment of its E&P assets in the Asia-Pacific region: a 50% stake in Sapura OMV Upstream Sdn. Bhd. and 100% of the shares in OMV New Zealand Limited. On January 31, 2024, OMV signed an agreement to divest its 50% shareholding in Malaysia’s SapuraOMV Upstream Sdn. Bhd. to TotalEnergies for an overall cash consideration of USD 903 mn. This amount includes the full repayment of the outstanding USD 350 mn shareholder loan granted by OMV to SapuraOMV, as well as net working capital and other elements with the consideration being subject to closing adjustments. The divestment is anticipated to close around the end of the first half of 2024, in particular subject to regulatory approvals. The sales process for 100% of the shares in OMV New Zealand will continue separately.
In Yemen, the sales process for OMV’s assets in the country is ongoing.

Central and Eastern Europe

In Romania, 45 new wells and sidetracks were drilled, 497 workover jobs, and 720 subsurface abandonments were performed in 2023.
For the first time in Europe, OMV Petrom used the Ultra Short Radius (USR) technology for drilling. Applied to existing wells with available surface facilities, this technology reduces the overall CAPEX by 40–50%, compared to standard vertical wells. The first USR well was spud in 2023.
The major planned maintenance works were successfully and safely finalized, on time and on budget, for both offshore and onshore facilities. OMV Petrom continued to focus on the most profitable barrels through assessing selective divestments opportunities.
By the end of 2023, about 77% of OMV Petrom’s E&P internal electricity consumption was covered by producing electrical and thermal energy mainly out of equity gas that couldn’t be monetized and from own renewable energy sources.
In 2023, OMV Austria placed significant emphasis on several projects like the Wittau Development, Strasshof Tief 17, natural gas storage expansion, the Alkali smart oil recovery (SOR) pilot and Flysch. Wittau represents the largest natural gas discovery in Austria in 40 years. The Strasshof Tief 17 well was spud in November 2023.
The Alkali SOR pilot was commissioned in Q2/23 to inject soft water, viscous, and alkali water into the reservoirs – we expect better injectivity and increased recovery. Flysch Phase 1 is a drilling project with the aim of confirming the further development potential of hydrocarbon deposits in Flysch source rock with selected production-enhancing technologies. With the development of the 16th natural gas storage facility, OMV Austria has not only strengthened the security of supply for our customers, but has also shown how quickly OMV can respond to changing market situations.
In addition, OMV Austria continuously optimized its plants in order to reduce the CO₂ footprint. Gas optimization projects and the increased workover capacities counteract the natural decline in production and contribute to the Austrian energy supply.

Middle East and Africa

In 2023, the Middle East and Africa region delivered strong production results despite a challenging security situation in Kurdistan and Yemen and ongoing quota restrictions.
In the UAE, strong production output was achieved due to OPEC+ quota restrictions revision and the continued high uptime and reliability of the offshore facilities in Umm Lulu and SARB. In May 2023, the first delivery of Umm Lulu (ULL) crude oil to OMV’s Schwechat refinery was achieved, the first ULL cargo to Europe.
In Kurdistan, the Khor Mor drilling campaign was finalized successfully. The expansion project advanced at a great pace in 2023 and is nearing completion.
In Tunisia, stable production at the Nawara natural gas field was maintained.
In Yemen, the security situation remains challenging, with drone attacks carried out and further threats made toward crude oil shipping operations. Production was disrupted during the whole of 2023. Subsequently, ongoing projects have been paused and activities in the field reduced to maintenance, inspection, and preservation operations.

North Sea

In Norway, several new production wells came on stream during 2023. On the Gullfaks field, nine wells were delivered during the year and handed over to production.
On the Edvard Grieg field, the second infill campaign was successfully completed during the year, with two new wells and one sidetrack being delivered.
The Solveig Phase 2 project, which is a subsea tie-back to the Edvard Grieg platform, was approved by the Norwegian Ministry of Energy and is currently progressing according to plan.
OMV submitted the Plan for Development and Operation (PDO) for the Berling field development in December 2022. The development concept is a subsea production facility with tie-back to the Åsgard B platform. The PDO was approved by the Norwegian authorities in June 2023. The production of natural gas and condensate is estimated to start up in 2027/28.
The Hywind Tampen offshore wind project was officially commissioned by Crown Prince Haakon of Norway in August 2023, and the wind farm is now delivering renewable wind power to the Gullfaks field.

Asia-Pacific

In Malaysia, the Jerun natural gas project is progressing according to plan with excellent safety performance. Over 11 mn hours have been worked without accidents.
In New Zealand, OMV safely completed three major drilling campaigns to redevelop and optimize the Māui and Pohokura natural gas assets. The operations team focused on asset integrity and maintenance projects and is implementing a number of emissions reduction initiatives across OMV sites. At Pohokura, site preparations commenced for the routine turnaround occurring every four years and the drilling of an infill well in Q3/24.

Key projects

Neptun (Romania, OMV Petrom 50%)

Together with its partner Romgaz, OMV Petrom made significant progress in 2023 with regards to the development of its key growth project, Neptun Deep, first with the final investment decision (FID) and subsequently with obtaining the endorsement of the field development plan (FDP) from the regulator. In the second half of the year, the company also awarded the contracts for the main offshore facilities development and for the drilling part, which, together with some other smaller contracts signed, cover more than 80% of the execution agreements. The next steps are related to completing the award of the main contracts and obtaining all the necessary permits. OMV Petrom plans to start drilling in 2025 and have first gas in 2027. The natural gas from Neptun Deep will make Romania the largest natural gas producer in the European Union and will double the current natural gas production of OMV Petrom.

Other major projects (Romania, OMV Petrom 100%)

The successful testing of two exploration wells in 2023, together with previous years’ successful exploration well, led to the discovery of large resources, estimated at 35 mn barrels of oil equivalent. The wells are currently in experimental production; based on findings, further development wells are planned to be spud within the coming years.
In addition, projects valued at over EUR 20 mn, namely FRD Bradesti Opportunity Phase 1, Tank Farm Independenta NFA Safeguarding, and Abramut Gas Plant Revamp have been successfully matured, with the first two securing the final investment decision.

Wittau (Austria, OMV 100%)

A successful exploration discovery made by OMV near Vienna in mid-2023 was followed by fast-track maturation and concept selection. The FID is expected to be taken in 2024 after front-end engineering and tendering activities are completed.

Umm Lulu and SARB (United Arab Emirates, OMV 20%)

Development drilling continued during the year, using up to five rigs in total. Nine wells were delivered in SARB and nine wells were drilled in Umm Lulu.

Ghasha concession (United Arab Emirates, OMV 5%)

On the Dalma project, activities on the onshore and offshore Engineering, Procurement, and Construction (EPC) packages continued, with first gas targeted for 2025. The FID was attained on the Hail & Ghasha mega project and the major contracts were awarded.

Gullfaks (Norway, OMV 19%)

Norway’s first floating wind farm Hywind Tampen was completed, with the remaining four wind turbines installed and started up. Nine wells were drilled in the Gullfaks annual activity program.

Gudrun (Norway, OMV 24%)

The water injection project Gudrun Phase 2 started on the Gudrun field in the North Sea. The Improved Oil Recovery (IOR) project will increase the oil recovery from the main reservoir on the field and extend the life span of production by two years, changing the drainage strategy from pressure depletion to pressure support by water injection.

Edvard Grieg (Norway, OMV 20%)

The Edvard Grieg Infill Phase 2 project was completed as planned.
The Solveig Phase 2 subsea development is on track, with the major contracts awarded and detailed design engineering completed.

Berling (Hades/Iris) (Norway, OMV 30%)

The OMV operated offshore project achieved the FID and the Norwegian Petroleum Directorate approved the PDO. An offshore seismic acquisition campaign was completed, as was umbilical and line pipe manufacturing. Production start-up is expected in 2028.

SK408 (Malaysia, OMV 40%)

In Malaysia, the SapuraOMV operated Jerun natural gas project is progressing well and within budget. The platform jacket was completed and installed, and the six offshore wells were drilled. The 80-kilometer export pipeline was laid. Fabrication of the platform topsides is nearing mechanical completion onshore. The forecast for first gas remains Q3/24.

Exploration and appraisal highlights

In 2023, OMV, OMV Petrom, and SapuraOMV drilled fifteen exploration and appraisal wells in seven different countries. Thirteen of these wells were completed before year-end, while the other two were either drilling or testing in early January 2024.
OMV operated or participated in a number of key wells, the highlight of the year being the operated Wittau Tief natural gas discovery in the Vienna Basin, Austria. This well was successfully tested and development plans are greatly advanced. The well was completed as a future producer and the next well on the structure is scheduled for the second half of 2024. The second in a sequence of deep natural gas exploration wells in Austria was spud in the Strasshof area. Expectations are that this well will reach final target depth in Q1/24.
Two non-operated natural gas discoveries were made onshore Tunisia, which, combined with the 2022 Anbar natural gas discovery, will likely form a new concession that will tie into the OMV operated Nawara facility.
In Norway, two operated wells were drilled, both yielding uncommercial discoveries. A third infrastructure led well (Solan/Ludvig) was successfully drilled at year-end and will be completed as a producer and tied into the Gullfaks facility.
In the UAE, OMV participated in non-operated appraisal activity in the Ghasha and SARB concessions.
In New Zealand, a natural gas appraisal well on Māui East was drilled and completed as a future producer.
In Romania, OMV Petrom drilled three wells, two operated and one non-operated. One resulted in a natural gas discovery that has been completed and in production since May. The other two were dry and have been plugged and abandoned.
In Mexico, SapuraOMV participated in two non-operated exploration wells on Block 30. One was announced as a material oil discovery and plans are underway to drill an appraisal well in the second half of 2024. The second well was unable to reach the primary target due to operational issues and was plugged and abandoned.
Earlier in 2023, OMV Norge was awarded new licenses in core areas in Norway and once again applied during the APA round, with a focus on near-infrastructure natural gas opportunities.
In Bulgaria, OMV Petrom assumed operatorship of the Han Aspurah license, immediately adjacent to the recent giant natural gas discoveries in offshore Türkiye.
Exploration and appraisal expenditure increased in 2023 to EUR 248 mn (2022: EUR 202 mn), largely to accelerate the drilling of deep natural gas opportunities in Austria.

Reserves development

Proved reserves (1P) as of December 31, 2023, increased to 1,136 mn boe (thereof OMV Petrom: 424 mn boe), with a one-year Reserve Replacement Rate (RRR) of 174% in 2023 (2022: –80% due to the exclusion of reserves in Russia after OMV ceased fully consolidating and equity accounting Russian entities). The three-year rolling average RRR is 56% (2022: 40%). Significant additions to proved reserves were realized in Romania, with a commitment to executing the Neptun Deep project in the Black Sea, as well as additions in the United Arab Emirates through the maturation of the Hail and Ghasha development and encouraging reservoir performance in other producing assets. Proved plus probable reserves (2P) decreased to 1,807 mn boe (thereof OMV Petrom: 694 mn boe) as net additions, mainly in the UAE, did not fully replace produced volumes.

Gas Marketing & Power

Gas Marketing Western Europe

OMV markets and trades natural gas in eight European countries. In 2023, natural gas sales volumes amounted to 85 TWh (2022: 111.2 TWh). The foundation of the natural gas sales business is a diverse supply portfolio, which consists of equity gas from Austria and Norway (amounting to 30.7 TWh in 2023) and a variety of international suppliers. In addition to mid- and long-term activities, short-term activities at Europe’s main international trading hubs and the EU joint natural gas purchasing platform complement OMV’s supply portfolio.

Gas supply, marketing, and trading

OMV’s Gas Marketing & Trading sales activities are focused on a diverse customer portfolio in the large-scale industry and municipality segments in Austria, Germany, Hungary, the Netherlands, and Belgium. Italy, Slovenia, and France are covered by opportunistic origination activities. The LNG business is an essential pillar of our business. OMV fully utilized its allotted capacity at the Gate regasification terminal in the Netherlands. Two long-term LNG supply contracts starting from 2026 and 2029 until 2036 have been concluded and refer to non-Russian natural gas only. This makes the LNG business a very important building block for OMV’s diversification of its natural gas supply portfolio, thereby enhancing supply security.
Even in 2023, the European natural gas market was still impacted by the energy market crisis stemming from the war in Ukraine, with very volatile natural gas prices and unpredictable supply curtailments from Russia. This situation is expected to continue.
The Gas Task Force, established in 2022 to minimize the adverse effects of the war in Ukraine, is making good progress on securing a continuous and diversified supply stream. This involves regular reporting of the security of supply status regarding OMV’s portfolio in terms of the overall natural gas supply situation, storage filling levels, and a continuous definition and adjustment of hedging strategies that mitigate the inherent price risk of natural gas supply disruptions. Natural gas supply diversification strategies were defined and executed accordingly, and OMV again successfully secured additional natural gas transportation capacities. Furthermore, OMV was able to fully utilize the capacity of its storage facilities. These measures succeeded in securing OMV’s portfolio and in increasing the resilience of the supply situation for the coming years. This will mitigate the impact of erratic Russian natural gas supply on OMV’s natural gas sales portfolio in Germany and Austria.

Gas logistics

OMV operates natural gas storage facilities in Austria and Germany with a capacity of 30 TWh. Additionally, OMV holds a 65% stake in the Central European Gas Hub (CEGH), the leading natural gas trading hub in Central and Eastern Europe.
Due to the previous mild winter in 2022, European storage system operators were able to start the new storage year in April 2023 with a relatively high storage level of 56% (April 1, 2022: 27%). A significant number of new international and national legal requirements and a consistently high degree of price volatility dominated the energy market. In this challenging environment, OMV Gas Storage still managed to win several new customers in 2023, expand the design capacity, and fill the OMV storage facilities to a maximum level of 104.5% in Austria and 99% in Germany.
At the Central European Gas Hub, 575.1 TWh of natural gas was nominated at the Virtual Trading Point (VTP) in 2023. This volume corresponds to approximately 7 times Austria’s annual natural gas consumption.

Gas & Power Eastern Europe

In Q1/23, Energy integrated the Gas Marketing East business from OMV Petrom. Synergies depend on both external and internal factors, and the aim is always to deliver the best results. Gas & Power Eastern Europe is developing operations in six countries, while also having market access to other countries close to Romania.
Following an unprecedented year on the energy market in 2022, with record high prices for both natural gas and power, market prices substantially decreased in 2023, accompanied by continued volatility. In Romania, the same trend with significantly lower prices compared to 2022 did not, however, translate into demand recovery. Consumption in Romania of natural gas and power across the full year was lower compared to the previous year, with industrial users’ offtake continuing to decline throughout the year and only some uplift at the end.
Regulations introduced by Romanian authorities in 2022 were in place during 2023 as well, meaning the natural gas and power markets continued to be highly regulated.
The Gas & Power Eastern Europe natural gas sales volumes to third parties reached 37.9 TWh in 2023, 6% higher compared to 35.8 TWh in 2022, making it a very strong performance. To complement equity natural gas supply, OMV Petrom sourced valuable volumes from third parties, thus successfully covering all its diverse sales channels.
Opportunities in neighboring countries are continuously scanned. In 2023, the first natural gas purchase contract with Botaş (Türkiye) was concluded, which is valid until March 2025. A memorandum of understanding to expand collaboration in the field of liquified natural gas (LNG) in Southeast Europe was also signed, thus contributing to security of supply for our own portfolio and that of the country in question.
On the power side, the net electrical output of the Brazi power plant decreased to 4.2 TWh, –17% compared to 2022, which was a record year for production. The Brazi power plant covered around 7% of the national power generation mix, with the contribution impacted by a planned outage of the entire capacity from March to the beginning of July 2023. It was the largest planned outage since the start of operations in 2012, and included the first major inspection of the steam turbine. After the outage, the power plant delivered exceptional output, with record high production levels.
In addition, activities on neighboring power markets have been expanded, making a significant contribution to the strong power result and continuing to strengthen our regional footprint.
Significant progress was achieved on renewable projects, including the partnership with Complexul Energetic Oltenia for four PV projects with a total capacity of around 450 MW, for which the financing contracts were signed with the Ministry of Energy, and the purchase of PV project rights with a future total capacity of around 710 MW. This builds momentum in achieving our strategic targets to transition to low and zero carbon.
In January 2024, OMV Petrom announced the purchase of a 50% stake in Electrocentrale Borzesti from RNV Infrastructure, which holds around 1 GW of renewable energy projects (950 MW wind and 50 MW solar). The projects will be developed further, built, and run in collaboration with RNV Infrastructure.
Additionally, OMV Petrom and Renovatio intend to invest roughly EUR 1.3 bn, including project financing, in Romanian renewable energy by 2027. OMV Petrom’s contribution for the acquisition and development of these projects is estimated to be up to EUR 350 mn. The closing of the transactions is expected to take place in the first half of 2024, after fulfilment of certain conditions.

Low Carbon Business

In the Energy division, the Low Carbon Business (LCB) team is looking at options to explore and commercially develop geothermal energy potential, as well as carbon capture and storage (CCS) solutions. In addition, the unit is working on expanding OMV’s photovoltaic asset base. Furthermore, solutions for subsurface energy storage, e.g., with hydrogen, are being investigated. The activities in LCB have experienced considerable momentum in the past year, making a noticeable impact at both national and international levels. A variety of initiatives have started, and several projects have been launched and/or executed. These projects are mainly in the R&D or initial investment phase. The investments are expected to ramp up after 2024.

Geothermal

As one of the achievements in geothermal activities in Austria, OMV and Wien Energie have joined forces to transform the way we heat our buildings. In a joint venture called “deeep,” the two companies are working closely to make deep geothermal energy a reality in the greater Vienna area. The aim is to develop deep geothermal plants with an output of up to 200 MW, thereby generating climate-neutral district heating for the equivalent of up to 200,000 Viennese households. The partners are also planning to implement up to seven deep geothermal plants in Vienna as part of the drilling programs. The first deep geothermal plant in the area of Aspern is to be realized together by the partners in the joint venture. The plant will generate up to 20 MW of climate-neutral district heating – in combination with heat pumps from Wien Energie. Approval procedures are currently underway, and drilling is due to start toward the end of 2024. The plant is scheduled to go into operation in 2027.
New technologies are essential to accelerate growth in our low carbon business, so OMV acquired a 6.5% stake in Canadian privately owned company Eavor Technologies Inc. (“Eavor”). Eavor is the leading closed-loop geothermal energy solution developer worldwide. In addition, OMV and Eavor have entered into a commercial agreement to pursue large-scale deployments of the Eavor-Loop™ technology in Europe and beyond. The commercial agreement establishes OMV as a key partner with preferential licensing terms, access to services, and development support. OMV’s initial focus will be on the deployment of Eavor-Loop™ in Austria, Romania, and Germany. Eavor’s technology is based on a closed-loop system, installed in deep subsurface rock, whereby a working fluid is heated up by circulating it between surface and deep subsurface rock in a closed loop. The technology reduces the geological and hence operational risk significantly compared to normal hydrothermal systems with similar energy output. As Eavor-Loop™ is truly scalable and applicable in various types of geological structures, it will enable OMV to offer heat solutions for district heating networks outside of the normal hydrothermal areas and therefore complement its existing portfolio of hydrothermal projects.
OMV is constantly evaluating and maturing further opportunities and projects with regards to open- and closed-loop geothermal energy.

Carbon Capture and Storage (CCS)

CCS solutions are explored based on Energy’s subsurface knowledge, capabilities, and asset base. Aker BP and OMV (Norge) AS have entered into a collaboration agreement for CCS and have been awarded a license for CO₂ storage in accordance with the CO₂ Storage Regulations on the Norwegian Continental Shelf (NCS). The license awarded to Aker BP and OMV is located in the Norwegian North Sea and is named Poseidon. Aker BP (50%) and OMV (Norge) AS (50%) have an interest in the license, which will be operated by Aker BP. The license comes with a work program and a drill or drop decision by 2025. As a first milestone, a 3D seismic survey was successfully finalized. The Poseidon license could potentially provide storage of more than 5 mn t of CO₂ per year. The intention is to inject CO₂ captured from multiple identified industrial emitters in North-West Europe, including from Borealis’ various industrial sites in Europe.
In addition to the license that OMV holds together with Aker BP, activities are continuing on further license applications and opportunities to build up a project portfolio and establish OMV as a key player in CCS on the Norwegian Continental Shelf (NCS). OMV collaborates on these activities in line with applicable regulatory and legal requirements, in conjunction with industry and research partners.

Renewable energy (wind and solar)

The LCB team is working on expanding the renewables asset base with a focus on captive use within the OMV Group. Wherever local regulations permit, the aim is to produce renewable energy and feed it into the electricity grid for use by third parties. The potential for doing this in the countries where OMV has business operations is currently being evaluated. Several renewable power generation projects are being pursued in Romania in the Gas & Power Eastern Europe business.

 For more details, please see the Gas & Power Eastern Europe section.

Innovation and new technologies

The Energy Technology unit provides key expertise and cutting-edge technologies to ensure the achievement of OMV’s strategic goal of decarbonization and becoming a net-zero emissions company by 2050.
Technology scouting, open innovation, and development is performed by a highly integrated team covering the entire value chain of energy projects: surface, subsurface, and laboratory. This is carried out in close collaboration with all OMV business locations including OMV Petrom and OMV (Norge) AS, external partners like Wien Energie, and renowned universities like Stanford, the University of Texas, and Montanuniversität Leoben.
Multidisciplinary project teams focus on evaluating technologies and performing essential work for the energy transition by building and providing expertise for future technology applications in geothermal energy, carbon capture, utilization, and storage, plus renewable energy.
Development of state-of-the-art online monitoring, emission control technologies, artificial intelligence and machine learning subsurface workflows, and water treatment ensure safe, sustainable, and stable operations worldwide.
The Energy Technology team demonstrates its position as a reliable technology and R&D partner by delivering technology to product solutions, supporting major field developments in the UAE for ADNOC, and enabling stable natural gas production and supply through the deployment of technology for the OMV Petrom Neptun Deep project in Romania.
The OMV Tech Center & Lab (TCL) in Austria and the OMV Petrom Upstream Laboratory (ICPT) in Romania are highly specialized energy technology centers and laboratories that support all OMV assets globally to ensure safe and sustainable operations. Experts covering the fields of geosciences, physics, chemistry, geochemistry, microbiology, environmental sciences, reservoir and materials science focus on technology testing, improvement, and laboratory solutions to enable the implementation of new renewable energy technologies. Technologies that OMV successfully implements are showcased to the public at the OMV Innovation & Technology Center (ITC) in Austria.

Digitalization

The OMV Energy digitalization journey started in 2018, and since then we have brought to life innovative platforms, created a data ecosystem, and established a citizen developer community. We have built solid foundations on which we enable digital solutions, deriving value for OMV Energy.
In Q1/23, the Energy department established the Operations Cockpit in Gänserndorf, Austria. The cockpit is a multidisciplinary on-call task force, integrating our experts from various technical disciplines across the globe. They use the latest digital tools and technology to connect with and support our local teams in the field to solve operational challenges, even when separated by great distances.
The construction of the first automated onshore rig in OMV’s portfolio in Romania is well underway. The automatic rig will improve HSSE performance by moving people outside the risk zones of the rig and will increase drilling efficiency by reducing time and costs due to a more effective execution of tasks by dedicated machines. It is envisaged that the overall drilling cost per well will be cut by almost 10% and CO₂ emissions will also be reduced due to the efficiency of automation. The first well to be drilled using the new rig is due to start in Q2/24.
Leveraging the digitalization potential of OMV’s drilling activities, we formed a Joint Industry Project (Smart Shaker) and piloted technology for continuous, AI-assisted, well cuttings monitoring of drilling activities in real time. This technology will increase the safety and efficiency of our drilling operations.
In 2023, we finalised the implementation of the innovative DELFI environment across all our operated ventures. The subsurface data and interpretation platform allows multidisciplinary teams to collaborate on the same data, both on site and remotely. Over the course of the year, more than 280 users and around 1.05 petabytes of data were migrated to the new, secure, public-cloud platform using over 80 individual applications for subsurface work.
Building on our simulation services workflows, in cooperation with Stanford University, we developed and implemented AI algorithms for optimized well placement. The algorithms can handle vertical and horizontal wells, and are independent of reservoir fluids, so they will be used for future CCS and geothermal development projects as well.
After successful implementation of a waterflood modeling solution on two reservoirs in Austria (leading to an annual production volume increase of 0.75%) at the end of 2022, the solution was deployed on three more fields in Romania in 2023. The technique targets increased production and reduced water-cut and field decline by building and scaling streamlined surveillance models for optimized waterflooding.
The e-Permit2Work project seeks to digitize the permit processes across our sites, thereby increasing the efficiency, traceability, and auditability of work carried out. The solution was piloted in Austria and deployments in our operated sites will continue in 2024.

Outlook

Market environment

In 2024, OMV expects the average Brent crude oil price to be around USD 80/bbl (2023: USD 83/bbl). For 2024, the average realized gas price is anticipated to be around EUR 25/MWh (2023: EUR 29/MWh), with a THE price forecast of between EUR 30/MWh and 35/MWh (2023: EUR 41/MWh).

Group

In 2024, organic CAPEX¹¹ is projected to come in at around EUR 3.8 bn (2023: EUR 3.7 bn), including non-cash effective CAPEX related to leases of around EUR 0.2 bn.

Chemicals & Materials

In 2024, the ethylene indicator margin Europe is expected to be around EUR 490/t (2023: EUR 507/t). The propylene indicator margin Europe is forecast at around EUR 370/t (2023: EUR 389/t).
In 2024, the steam cracker utilization rate in Europe is expected to be around 85% (2023: 80%).
In 2024, the polyethylene indicator margin Europe is forecast to be around EUR 320/t (2023: EUR 322/t). The polypropylene indicator margin Europe is expected to be around EUR 320/t (2023: EUR 355/t).
In 2024, the polyethylene sales volumes excluding JVs are projected to be around 1.9 mn t (2023: 1.63 mn t). The polypropylene sales volumes excluding JVs are expected to be around 2.0 mn t (2023: 1.86 mn t).
Organic CAPEX related to Chemicals & Materials is predicted to be around EUR 1.0 bn in 2024 (2023: EUR 1.2 bn).

Fuels & Feedstock

In 2024, the OMV refining indicator margin Europe is expected to be around USD 8/bbl (2023: USD 11.7/bbl).
In 2024, fuels and other sales volumes in OMV’s markets in Europe are projected to be higher than in 2023 (2023: 16.3 mn t). Commercial margins are forecast to be below those in 2023. Retail margins are forecast to be slightly below the 2023 level.
In 2024, the utilization rate of the European refineries is expected to be around 95% (2023: 85%).
Organic CAPEX in Fuels & Feedstock is forecast at around EUR 0.8 bn in 2024 (2023: EUR 1.0 bn).

Energy

OMV expects total hydrocarbon production in 2024 to be between 330 kboe/d and 350 kboe/d (2023: 364 kboe/d), depending on the timing of the divestment of the assets in Malaysia, the situation in Libya, and also due to natural decline.
Organic CAPEX for Energy is anticipated to come in at around EUR 1.9 bn in 2024 (2023: EUR 1.5 bn).
In 2024, Exploration and Appraisal (E&A) expenditure is expected to be around EUR 200 mn (2023: EUR 248 mn).

 For information about the longer-term outlook, see the Strategy chapter.

Risk Management

As an international oil, gas, and chemicals company with operations extending from hydrocarbon exploration and production through to the trading and marketing of mineral oil products, chemical products, and natural gas, OMV is exposed to a variety of risks – including market and financial risks, operational risks, and strategic risks. The Group’s risk management processes focus on the identification, assessment, and evaluation of such risks and their impact on the Group’s financial stability and profitability. The objective of these activities is to actively manage risks in the context of the Group’s risk appetite and defined risk tolerance levels in order to achieve OMV’s long-term strategic goals.

Risk management governance

OMV recognizes the dynamic and evolving nature of its business landscape. Effective risk governance is crucial for successfully navigating through uncertainties inherent to the nature of OMV’s operations.
As an integral part of the Supervisory Board, the Audit Committee diligently oversees the implementation and efficacy of our risk management processes. By leveraging the expertise within the Audit Committee and remaining adaptive through ongoing education, the Supervisory Board reinforces its commitment to robust risk governance.

The Executive Board takes a proactive stance in overseeing and enhancing OMV’s risk management processes as well as ensuring a strong risk culture across the OMV Group. A cross-functional committee chaired by the OMV Group CFO with senior management members of the OMV Group – the Risk Committee – ensures that the risk management process effectively captures and manages material risks across the OMV Group. OMV has an effective independent Corporate Risk Management function within the CFO area that reports directly to the Executive Board and is independent from the business lines.

It is OMV’s view that the Group’s overall risk is significantly lower than the sum of the individual risks due to its integrated nature and the fact that various risks partially offset each other. The balancing effects of industry risks, however, can often lag or weaken over time. OMV’s risk management activities therefore focus on the net risk exposure of the Group’s existing and future portfolio. The interdependencies and correlations between different risks are also reflected in the Company’s consolidated risk profile. Risk management and insurance activities are centrally coordinated at the corporate level by the Treasury and Risk & Insurance Management departments. These departments ensure that well-defined and consistent risk management processes, tools, and techniques are applied across the entire organization. Risk ownership is assigned to the managers who are best suited to overseeing and managing the respective risk.
The overall objective of the risk policy is to safeguard the cash flows required by the Group and to maintain a strong investment-grade credit rating in line with the Group’s risk appetite.
Financial and non-financial risks are regularly identified, assessed, and reported through the Group’s Enterprise-Wide Risk Management (EWRM) process.
The main purpose of the OMV Group’s EWRM process is to deliver value through risk-based management and decision-making, which is ensured by applying a “three lines of defense” model (1. business management, 2. risk management and oversight functions, 3. internal audit). The assessment of financial, operational, and strategic risks helps the Group leverage business opportunities in a systematic manner. This systematic approach ensures that OMV’s value grows sustainably. Since 2003, the EWRM system has helped enhance risk awareness and improve risk management skills across the entire organization, including at subsidiaries in more than 20 countries. The OMV Group is constantly enhancing the EWRM process based on internal and external requirements, for instance developing ESG (Environmental, Social, and Governance) reporting standards and frameworks.
OMV’s EWRM process has been set up in accordance with the ISO 31000 standard and is facilitated by a Group-wide IT system supporting the established individual process steps: risk identification, risk analysis, risk evaluation, risk treatment, reporting, and risk review through continuous monitoring of changes to the risk profile. The overall risk resulting from the bottom-up risk management process is computed using Monte Carlo simulations and compared against planning data. This is further combined with a top-down approach from the senior management view to capture risks associated with the Group’s strategy. The process also includes companies that are not fully consolidated. The EWRM process uses common risk terminology and language across the OMV Group to facilitate effective risk communication, whereby ESG risks play a key role in the OMV risk taxonomy. Twice a year, the results of this process are consolidated and presented to the Executive Board and the Audit Committee of the Supervisory Board. In compliance with the Austrian Code of Corporate Governance, the effectiveness of the EWRM system is evaluated by an external auditor on an annual basis. The key financial and non-financial risks identified with respect to OMV’s mid-term planning are:

_►Financial risks, including market price risks and foreign exchange risks
_►Operational risks, including all risks related to physical assets, production risks, project risks, personnel risks, IT risks, HSSE, and regulatory/compliance risks
_►Strategic risks arising, for example, from climate change, changes in technology, risks to reputation, or political uncertainties, including sanctions

Financial risk management

Market price and financial risks arise from volatility in the prices of commodities, including the market price risks from European Emission Allowances, foreign exchange (FX) rates, and interest rates. Also of importance are credit risks, which arise from the inability of a counterparty to meet a payment or delivery commitment. As an oil, gas, and chemicals company, OMV has a significant exposure to oil, natural gas, and chemicals prices. Substantial FX exposure includes the USD, RON, NOK, NZD, and SEK. The Group has an economic net USD long position, mainly resulting from oil production sales. The comparatively less significant exposure in RON, NOK, NZD, and SEK originates from expenses in local currencies in the respective countries.

Management of commodity price risk, FX risk, European Emission Allowances

The analysis and management of financial risks arising from foreign currencies, interest rates, commodity prices, European Emission Allowances, counterparties, liquidity, and insurable risks are consolidated at the corporate level. Market price risk is monitored and analyzed centrally in respect of its potential cash flow impact using a specific risk analysis model that considers portfolio effects. The impact of financial risks (e.g., commodity prices, currencies) on the OMV Group’s cash flow and liquidity is reviewed regularly by the Risk Committee, which is chaired by the CFO and comprises the senior management of the business segments and corporate functions.
In the context of commodity price risk and FX risk, the OMV Executive Board decides on hedging strategies to mitigate such risks whenever deemed necessary. OMV uses financial instruments for hedging purposes to protect the Group’s cash flow, for example from the potential negative impact of falling oil and natural gas prices in the Energy division. In the Fuels & Feedstock and Chemicals & Materials businesses, OMV is especially exposed to volatile refining and chemicals margins, natural gas prices, and CO₂ emissions certificates, as well as inventory risks. Corresponding optimization and hedging activities are undertaken in order to mitigate those risks. They include margin hedges as well as stock hedges. An optimization, trading, and hedging risk control governance system defines clear mandates including risk thresholds for such activities.

Management of interest rate risk

To balance the Group’s interest rate portfolio, loans can be converted from fixed to floating rates and vice versa according to predefined rules. OMV regularly analyzes the impact of interest rate changes on interest income and expenses from floating rate deposits and borrowings.

Management of credit risk

Significant counterparty credit risks are assessed, monitored, and controlled at the Group and segment level using predetermined credit limits for all counterparties, banks, and security providers. The procedures are governed by guidelines at OMV Group level. In light of a challenging geopolitical and economic environment with high inflation, volatile commodity prices, rising interest rates, and distorted supply chains, special attention is paid to early warning signals like changes in payment behavior. Given the events in the banking sector in the first quarter of 2023, OMV has implemented even tighter monitoring of its banking counterparties and of respective exposures in addition to its standard credit risk management processes.

Operational risks

The nature of OMV’s business operations exposes the Group to various health, safety, security, and environmental (HSSE) risks. Such risks include the potential impact of natural disasters, as well as process safety and personal security events. Other operational risks comprise risks related to the delivery of capital projects or legal/regulatory non-compliance. All operational risks are identified, analyzed, monitored, and mitigated in accordance with the Group’s defined risk management process. Control and mitigation of assessed risks take place at all organizational levels using clearly defined risk policies and responsibilities. The key Group risks are governed centrally to ensure the Group’s ability to meet planning objectives through corporate directives, including those relating to health, safety, security, environment, legal matters, compliance, human resources, and sustainability.

Project risks

In implementing its Strategy 2030, OMV will invest in both organic and inorganic growth projects following a mature project risk management process, identifying, analyzing, and monitoring project risks on a regular basis. OMV has vast experience in managing major capital projects and mitigating project risks.

OMV may experience operational, political, technological, or other risks beyond its control, both its own and belonging to its contractual partners, which may delay or hinder the progress of its projects.

By way of example, the execution of major onshore and offshore projects in Romania, Norway, and the UAE may be affected by changes to the respective regulatory or fiscal frameworks, by the unavailability of contractors, or the lack of qualified staff. Project costs may be negatively impacted by price inflation, labor shortages, or the disruption or reorganization of supply chains. Projects, in particular in recycling and sustainable fuels and feedstocks, may be affected by insufficient availability of required feedstock supply, by the inability to commercially scale up new technologies, or by the lack of regulatory clarity. In new business areas in particular, OMV may more often invest through partnerships and joint ventures, which may expose the Company to increased governance and credit risks and may negatively impact project execution. The effect of any of these risks may have a material adverse impact on OMV’s business, results of operations, and financial condition.

ESG risk

OMV places special emphasis on five Sustainability focus areas: Climate Change; Natural Resources Management; People; Ethical Business Practices; and Health, Safety, and Security.

OMV Executive Board members regularly (at least quarterly) discuss current and upcoming environmental, climate, and energy-related policies and regulations, related developments in the fuels, chemicals, and natural gas markets, the financial implications of emission certificate trading schemes, the status of innovation project implementation, and progress on achieving sustainability-related targets. OMV focuses on assessing the potential vulnerabilities of the Company to climate change (e.g., water deficiency, droughts, floods, landslides), the impact of the Company on the environment, and the mitigation actions that will ensure a successful transition to a low-carbon environment (e.g., carbon emission reductions, compliance with new regulatory requirements). The short- and mid-term physical vulnerabilities related to climate change are identified and reported in the EWRM process. Additionally, OMV has performed a robust climate and vulnerability assessment for most of its main assets to identify its resilience to physical risks related to climate change using the Intergovernmental Panel on Climate Change (IPCC) scenarios corresponding to the time horizon suggested by the EU taxonomy.

OMV’s operations impact our employees and the communities where we operate. As a signatory to the United Nations Global Compact, OMV follows the Human Rights Due Diligence Process, including the assessment of the human rights risk associated with our current and future business activities, and taking risk management actions. This ongoing process makes use of external resources and expertise, and includes external stakeholders, in particular impacted groups.

IT risks

As OMV’s activities rely on information technology systems, the Group may experience disruption due to major cyber events. Security controls are therefore implemented across the Group to protect information and IT assets that store and process information. IT-related risks are assessed, monitored regularly, and managed actively with dedicated information and security programs across the organization. OT (Operational Technology) related risks are reflected in the assessment of process safety risks. Additionally, OMV recognizes the emergence of AI-related risks and is actively integrating measures within existing security controls to address potential disruptions and vulnerabilities associated with artificial intelligence.

Strategic risks

In order to identify strategic risks that might have potentially long-term effects on the Company’s objectives, OMV continuously monitors its internal and external environment.

Geopolitical and regulatory risks

OMV thoroughly monitors geopolitical developments, including the ongoing Russian war on Ukraine and any additional sanctions and countersanctions resulting from it, as well as recent attacks on Israel that have raised concerns about regional stability and their potential impact on OMV’s business activities. Nevertheless, it is important to note that, as it currently stands, OMV's operations in the MENA region remain unaffected by these developments.

The Company regularly reviews the impact of potential further escalations on its business activities. Continued and/or intensified disruptions in Russian commodity flows to Europe, for example, could result in further increases in European energy prices. Sanctions on Russia and countersanctions issued by Russia could lead to further disruptions in global supply chains and shortages of products related to energy, raw materials, agriculture, and metals, and consequently lead to further increases in operational costs.

In light of potential further, or even full, natural gas supply disruptions from Russia, e.g., due to discontinuation of the gas transit agreement between Ukraine and Russia, OMV has diversified both gas supply sources and gas supply routes to ensure secure energy supply to its customers. Supported by warmer than average weather in Europe, increased renewable power generation, and elevated gas price levels, households and industry have reduced gas consumption in 2023 leading to lower gas demand, and more gas in storage in Central Europe than expected. In July 2023, OMV managed to secure around 40 TWh of additional transport capacities to Austria at the transfer points Oberkappel (pipeline from Germany) and Arnoldstein (pipeline from Italy) for both the current gas year and for the period from October 1, 2023 to September 30, 2026. For the period from October 1, 2026 to September 30, 2028, OMV booked around 20 TWh of transport capacities at the aforementioned transfer points. OMV continues to closely monitor developments and regularly evaluates the potential impact on the Group’s cash flow and liquidity position.
High volatility in natural gas prices can potentially lead to peak liquidity demands to satisfy margin calls for exchange trading activities at short notice. OMV has unused committed and uncommitted credit facilities to meet such short-term requirements if needed. OMV is responding to the situation with targeted measures to safeguard the Company’s economic stability as well as the secure supply of energy.
As a direct consequence of the energy crisis in Europe, regulatory measures like regulated/capped prices for gas and power, subsidy schemes, and over-taxation or the EU solidarity contribution have been implemented in some of the countries OMV is active in. If energy prices in Europe remain at high levels, there is a risk that further regulatory and fiscal interventions may impact OMV financials.
In addition to the above-mentioned geopolitical tensions, OMV’s operations are exposed to further geopolitical risks such as the expropriation and nationalization of property, restrictions on foreign ownership, civil strife and acts of war or terrorism, and political uncertainties, for example in Libya, Yemen, or Tunisia, as well as other countries where OMV operates and has financial investments. However, OMV has extensive experience in dealing with the political environment in emerging economies. Also, possible regulatory changes may lead to disruptions or limitations in production or an increased tax burden. OMV continuously observes political and regulatory developments in all markets that affect OMV’s operations. Country-specific risks are assessed before entering new countries.

Macroeconomic risks

Geoeconomic fragmentation, trade restrictions, and disruptions to global supply chains could lead to further cost increases for OMV. Coupled with rising interest rates, this situation has the potential to also negatively impact economic growth, which in turn could affect demand for OMV’s products.

Climate change-related risks

OMV consistently evaluates the Group’s exposure to risks related to climate change, in addition to the market price risk from European Emission Allowances. Such risks comprise the potential impact of acute or chronic events like more frequent extreme weather events, systemic changes to our business model due to a changing legal framework, or substitution of OMV’s products due to changing consumer behavior. OMV recognizes climate change as a key global challenge, and therefore integrates the related risks and opportunities into the development of the Company’s business strategy. Measures implemented to manage or mitigate such risks are set out in the relevant sections of this report, particularly in Sustainability and Strategy.

Business transformation risks

OMV’s transformation into a leading provider of sustainable fuels, chemicals, and materials, as well as sustainable energy solutions, is influenced by a variety of uncertainties. Such risks include the availability of skilled employees, technology and scale-up risks, availability of sustainable feedstock in sufficient quality and quantity, and governance risks related to joint ventures and partnerships.

Personnel risks

Through systematic employee succession and development planning, OMV’s People & Culture department aims to develop and attract suitable managerial employees to meet future growth requirements and mitigate personnel risks.

 For further details on risk management and the use of financial instruments, please refer to Note 30 of the Consolidated Financial Statements.
 For further details on climate change-related risks and their management, see the OMV Sustainability Report, as well as Note 2 of the Consolidated Financial Statements.
 For further details on health, safety, security, and environmental risks, please refer to the chapter Health, Safety, Security, and Environment in the Directors’ Report.

Other Information

Information required by section 267 Paragraph 3a in connection with section 243a Paragraph 1 of the Unternehmensgesetzbuch (Austrian Commercial Code)

1. The capital stock amounts to EUR 327,272,727 and is divided into 327,272,727 bearer shares of no par value. There is only one class of shares.
2. There is a consortium agreement in place between the two core shareholders, Österreichische Beteiligungs AG (ÖBAG) and Mubadala Petroleum and Petrochemicals Holding Company L.L.C (MPPH), which provides for coordinated behavior and certain limitations on transfers of shareholdings.¹²
3. ÖBAG holds 31.5% and MPPH holds 24.9% of the capital stock.¹²
4. All shares have the same control rights.
5. Employees who are shareholders directly exercise their voting rights at the Annual General Meeting.
6. The Company’s Executive Board must consist of two to six members. The Company’s Supervisory Board must consist of at least six members elected by the Annual General Meeting and of the members nominated under section 110 Paragraph 1 of the Arbeitsverfassungsgesetz (Austrian Labor Constitution Act). Resolutions concerning the dismissal of members of the Supervisory Board pursuant to section 87 Paragraph 8 of the Aktiengesetz (Austrian Stock Corporation Act) require a simple majority of the votes cast. To approve capital increases pursuant to section 149 of the Austrian Stock Corporation Act and alterations of the Articles of Association (except those concerning the Company’s objects), simple majorities of the votes and capital represented in adopting the resolution are sufficient.
7.

7.a) As the authorized capital granted by the Annual General Meeting on May 14, 2014, expired on May 14, 2019, the Annual General Meeting decided upon a new authorized capital on September 29, 2020. Specifically, it authorized the Executive Board until September 29, 2025, to increase the share capital of OMV with the consent of the Supervisory Board – at once or in several tranches – by an amount of up to EUR 32,727,272 by issuing up to 32,727,272 new no-par value common voting shares in bearer form in return for contributions in cash. The capital increase can also be implemented by way of indirect offer for subscription after taking over by one or several credit institutions according to Section 153 Paragraph 6 of the Austrian Stock Corporation Act. The issue price and the conditions of issuance can be determined by the Executive Board with the consent of the Supervisory Board. The Annual General Meeting also authorized the Executive Board, subject to the approval of the Supervisory Board, to exclude the subscription right of the shareholders if the capital increase serves to

(i) adjust fractional amounts or

(ii) satisfy stock transfer programs, in particular long-term incentive plans, equity deferrals or other participation programs for employees, senior employees and members of the Executive Board/management boards of the Company or one of its affiliates, or other employees’ stock ownership plans.

In addition, the Supervisory Board was authorized to adopt amendments to the Articles of Association resulting from the issuance of shares according to the authorized capital.

7.b) On June 2, 2021, the Annual General Meeting authorized the Executive Board for a period of five years from the adoption of the resolution, therefore, until and including June 1, 2026, subject to the approval of the Supervisory Board, to dispose of or utilize repurchased treasury shares or treasury shares already held by the Company to grant to employees, executive employees and/or members of the Executive Board/management boards of the Company or its affiliates including for purposes of share transfer programs, in particular long-term incentive plans including equity deferrals or other stock ownership plans, and to thereby exclude the general purchasing right of shareholders (exclusion of subscription rights). The authorization can be exercised as a whole or in parts or even in several tranches by the Company, by a subsidiary (Section 189a Number 7 of the Austrian Commercial Code) or by third parties for the account of the Company.

8. As at balance sheet date, a total of 142,007 own shares (EUR 142,007), or 0.04% of the capital stock, were held. During the reporting period, 59,667 shares, equivalent to 0.02% of the capital stock, with a value of EUR 2.32 mn were used for share-based compensations. The difference of EUR 1.66 mn between this amount and the historic repurchase value was written to the capital reserve.

9. As of December 31, 2023, OMV has outstanding perpetual hybrid notes in the nominal amount of EUR 2,500 mn which are subordinated to all other creditors. According to IFRS, the net proceeds of the hybrid notes in the amount of EUR 2,483 mn are fully treated as equity because the repayment of the principal and the payments of interest are solely at the discretion of OMV.

On December 7, 2015, OMV issued hybrid notes with an aggregate principal amount of EUR 1,500 mn, in two tranches of EUR 750 mn each:

(i) The hybrid notes of tranche 1, with a first call date in 2021, were called and redeemed at their principal amount (plus interest accrued) on November 30, 2021.

(ii) The hybrid notes of tranche 2 bear a fixed interest rate of 6.250% per annum until, but excluding, December 9, 2025, which is the first call date of tranche 2. From December 9, 2025 (including), tranche 2 will bear an interest rate per annum at the relevant five-year swap rate for the relevant interest period plus a specified margin and a step-up of 100 basis points.

Interest is due and payable annually in arrears on December 9 of each year, unless OMV elects to defer the relevant interest payments. The outstanding deferred interest must be paid under certain circumstances, in particular, if the Annual General Meeting of OMV resolves upon a dividend payment on OMV shares.

On June 19, 2018, OMV issued a hybrid bond with a principal amount of EUR 500 mn. The hybrid bond bears a fixed interest rate of 2.875% per annum until, but excluding, June 19, 2024. From June 19, 2024 (including), until, but excluding, June 19, 2028, the hybrid notes will bear interest at a rate corresponding to the relevant five-year swap rate plus a specified margin. From June 19, 2028 (including), the notes will bear an interest rate per annum at the relevant five-year swap rate for the relevant interest period plus a specified margin and a step-up of 100 basis points. Interest is due and payable annually in arrears on June 19 of each year, unless OMV elects to defer the relevant interest payments. The outstanding deferred interest must be paid under certain circumstances, in particular, if the Annual General Meeting of OMV resolves upon a dividend payment on OMV shares.

On September 1, 2020, OMV issued hybrid notes with an aggregate principal amount of EUR 1,250 mn, in two tranches (tranche 1: EUR 750 mn; tranche 2: EUR 500 mn) with the following interest payable:

(iii) The hybrid notes of tranche 1 bear a fixed interest rate of 2.500% per annum until, but excluding, September 1, 2026, which is the first reset date of tranche 1. From the first reset date (including) until, but excluding, September 1, 2030, the hybrid notes of tranche 1 will bear interest per annum at a reset interest rate which is determined according to the relevant five-year swap rate plus a specified margin. From September 1, 2030 (including), the hybrid notes of tranche 1 will bear an interest rate per annum at the relevant five-year swap rate for each interest period thereafter plus a specified margin and a step-up of 100 basis points.

(iv) The hybrid notes of tranche 2 bear a fixed interest rate of 2.875% per annum until, but excluding, September 1, 2029, which is the first reset date of tranche 2. From the first reset date (including) until, but excluding, September 1, 2030, the hybrid notes of tranche 2 will bear interest per annum at a reset interest rate which is determined according to the relevant five-year swap rate plus a specified margin. From September 1, 2030 (including), the hybrid notes of tranche 2 will bear an interest rate per annum at the relevant five-year swap rate for each interest period thereafter plus a specified margin and a step-up of 100 basis points.

Interest is due and payable annually in arrears on September 1 of each year, unless OMV elects to defer the relevant interest payments. The outstanding deferred interest must be paid under certain circumstances, in particular, if the Annual General Meeting of OMV resolves upon a dividend payment on OMV shares.

The hybrid notes outstanding as of December 31, 2023, do not have a scheduled maturity date and they may be redeemed at the option of OMV under certain circumstances. OMV has, in particular, the right to repay the hybrid notes at certain call dates. Any accrued unpaid interest becomes payable when the notes are redeemed. In the case of a change of control, for example, OMV may call the hybrid notes for redemption or else the applicable interest rate will be subject to an increase according to the terms and conditions of the hybrid notes.

10. The material financing agreements to which OMV is a party and bonds issued by OMV contain typical change of control clauses.
11. There are no agreements between the Company and members of the Executive Board and Supervisory Board or employees regarding the payment of compensation in the event of a public takeover bid.
12. The most important elements of the internal control and risk management system regarding the accounting process are the following: Governance for the internal control system is defined by internal corporate regulations (ICS Directive and its Annexes). Corporate Internal Audit controls the compliance with these principles and requirements through regular audits, based on the annual audit plan approved by the Audit Committee of the Supervisory Board, or through ad hoc audits.The results of those audits are presented to the Audit Committee of the Supervisory Board. For the main “end-to-end” processes (e.g., purchase-to-pay, order-to-cash), Group-wide Minimum Control Requirements are defined. Based on a defined time plan, the implementation and the effectiveness are being monitored. The establishment of Group-wide standards for the preparation of annual and interim financial statements by means of the corporate IFRS Accounting Manual is also regulated by an internal corporate regulation. The Group uses a comprehensive risk management system. The essential processes of the financial reporting system have been identified and analyzed. In addition, the effectiveness of the risk management system is regularly evaluated by external auditors. The results of the evaluation are reported to the Audit Committee of the Supervisory Board.

Non-financial declaration according to Section 267a Austrian Commercial Code

1. In accordance with section 267a Paragraph 6 of the Austrian Commercial Code, a separate consolidated non-financial report will be issued.

Subsequent events

 Please refer to Note 39 in the Consolidated Financial Statements.

Vienna, March 5, 2024
The Executive Board

Alfred Stern m.p. Chairman of the Executive Board and Chief Executive Officer	Reinhard Florey m.p. Chief Financial Officer
Martijn van Koten m.p. Executive Vice President Fuels & Feedstock	Daniela Vlad m.p. Executive Vice President Chemicals & Materials
Berislav Gaso m.p. Executive Vice President Energy

Auditor’s Report¹³

Report on the Consolidated Financial Statements

Audit Opinion

We have audited the consolidated financial statements of

OMV Aktiengesellschaft, Vienna,

and its subsidiaries (the Group), which comprise the Consolidated Statement of Financial Position as of December 31, 2023, the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Changes in Equity and the Consolidated Statement of Cash Flows for the year then ended, and the Notes to the Consolidated Financial Statements, except for “Oil and Gas Reserve Estimation and Disclosures (unaudited)”.
In our opinion, the consolidated financial statements comply with the legal requirements and present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2023, and its consolidated financial performance and consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU, and the additional requirements pursuant to Section 245a UGB (Austrian Commercial Code) as well as other legal or regulatory requirements.

Basis for our Opinion

We conducted our audit in accordance with the EU Regulation 537/2014 (“AP Regulation”) and Austrian Standards on Auditing. These standards require the audit to be conducted in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the “Auditor’s Responsibilities” section of our report. We are independent of the audited Group in accordance with Austrian company law and professional regulations, and we have fulfilled our other responsibilities under those relevant ethical requirements. We believe that the audit evidence we have obtained up to the date of the auditor’s report is sufficient and appropriate to provide a basis for our audit opinion on this date.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, however, we do not provide a separate opinion thereon.

Disclosures on the effects of climate change and the energy transition

Refer to Note 2 – Effects of climate change and the energy transition.

Risk for the Consolidated Financial Statements

As part of its strategy 2030 presented in 2022, the Group is fully committed to supporting and accelerating the energy transition. The Group aims to achieve carbon neutrality by 2050.
In Note 2 of the consolidated financial statements the Group describes how the management considers both climate-related impacts and emission reduction targets in key areas of the consolidated financial statements and how this impacts the valuation of assets and measurement of liabilities.
OMV considers two different scenarios:

_►the base case, whose assumptions in terms of demand and oil and gas prices are consistent with IEA announced pledges scenario (APS), is used for the mid-term planning as well as for estimates for various areas of the consolidated financial statements, including impairment testing of non-financial assets and the measurement of provisions; and
_►the “net zero emissions by 2050” case, whose assumptions are consistent with the IEA net zero emissions (NZE) scenario, is used to perform a sensitivity analysis for the valuation of non-financial assets and the measurement of provisions.

These scenarios differ in the underlying expectations about the pace of the future worldwide decarbonization and lead to different assumptions for demand and prices of oil and gas as well as CO₂ prices.
The main areas impacted by the effects of climate change and the energy transition are:

_►the recoverability of assets;
_►the useful lives of assets; and
_►the valuation of provisions for decommissioning and restoration obligations.

The disclosures on the above areas have high public attention and involve a high degree of judgment and significant macroeconomic assumptions. Therefore, we have identified the disclosures on the effects of climate change and the energy transition as a key audit matter.

Our response

We evaluated the disclosures on the effects of climate change and the energy transition as follows:

_►We assessed the design and implementation of internal controls in the estimation process, with a focus on how the effect of climate change and net zero commitment was considered for the key assumptions in the impacted areas of the consolidated financial statements.
_►We implemented a climate change panel comprising a group of experienced international KPMG partners with specific climate change, technical audit and accounting expertise to provide an independent challenge to our key decisions and conclusions with respect to the key assumptions to this key audit matter.
_►We performed inquiries to understand the impacts of the net zero commitment and climate-related risks on the consolidated financial statements.
_►We evaluated whether the impact of net zero commitment, as assessed by the Group, was reflected in the respective assumptions applied in the measurement of recoverable amount of assets, the useful lives of assets, and the valuation of provisions for decommissioning and restoration obligations.
_►We compared the assumptions for oil and gas as well as CO2 prices used in the sensitivity analysis with publicly available information (the IEA net zero emissions scenario).
_►We read the Sustainability Report and assessed whether there are inconsistencies between this report and the consolidated financial statements on climate-related issues.
_►We evaluated the accuracy, completeness, and relevance of these disclosures in the consolidated financial statements.

_▸

Recoverability of oil and gas assets in property, plant, and equipment

Refer to Note 2 – Effects of climate change and the energy transition, Note 3 – Accounting policies, judgments, and estimates, Note 8 – Depreciation, amortization, impairments, and write ups, and Note 17 – Property, plant, and equipment.

Risk for the Consolidated Financial Statements

The carrying value of oil and gas assets in property plant, and equipment amounts to EUR 8,927 mn as of December 31, 2023.
The assets’ operational performance and external factors have a significant impact on the estimated future cash flows and therefore the recoverable amount of the oil and gas assets. The recoverable amount is highly judgmental and complex to estimate. The key assumptions considered by the Group in assessing the value in use include oil and gas prices, CO₂ prices, oil and gas reserves, and discount rates. As described in Note 2 and Note 3.2.j, these significant assumptions are forward-looking and can be affected by future economic and market conditions, including matters related to climate change and the energy transition.
The Group recorded a net impairment reversal of EUR 57 mn on oil and gas assets in property, plant, and equipment as of December 31, 2023.
There is a risk for the consolidated financial statements that the valuation of oil and gas assets in property, plant, and equipment is misstated.

Our response

We assessed the recoverability of oil and gas assets in property, plant, and equipment as follows:

_►We obtained an understanding and evaluated the design and implementation of key internal controls over the process for evaluating the recoverable amount of oil and gas assets. Our work included testing control activities over the identification of triggering events and the determination of key management assumptions underlying the recoverable amount of the assets tested.

Future cash flows

_►We compared the main assumptions (future oil and gas prices, future CO2 prices, production volumes, future production costs) used within the future cash flow models to those included in mid-term planning approved by the Supervisory Board.
_►We assessed the consistency of the assumptions on future productions costs by calculating cost-to-production ratios and comparing them year over year.

Price assumptions

_►We assessed the reasonableness of future short and long-term oil and gas price assumptions by comparing these to publicly available industry information, especially the IEA’s announced pledges scenario and those adopted by other energy companies.
_►We examined the CO2 price assumptions included in the future cash flows by comparing them with current market data and publicly available information (especially from the IEA).

Recoverability of oil and gas assets in property, plant, and equipment (continued)

Our response (continued)

Oil and gas reserves

_►We obtained an understanding of the Group’s Petroleum Resource Evaluation Standard and performed a walkthrough of the reserve estimation process and controls.
_►We assessed the competence, authority, and objectivity of internal reservoir engineers responsible for estimating oil and gas reserves through understanding their relevant professional qualifications and experience.
_►We compared production forecasts to the internal evaluations of proved and probable oil and gas reserves.
_►We reviewed for selected assets prior period reserve estimates made by the independent expert DeGolyer & MacNaughton and inquired differences to internal estimations.
_►We inquired for selected assets the reasons for significant changes in oil and gas reserves.

Discount rates

_►With the assistance of our valuation specialists, we assessed input assumptions for determining discount rates by comparing them with market and industry-specific benchmarks.

Other procedures

_►We assessed the management’s identification of indicators for impairments and reversals of impairment.
_►We assessed the determination of cash generating units based on how cash flows are generated and based on industry practice.
_►We verified the mathematical accuracy of the cash flow models.
_►We assessed the adequacy of the disclosures in the consolidated financial statements.

Recoverability of equity-accounted investments

Refer to Note 3 – Accounting policies, judgments, and estimates, Note 8 – Depreciation, amortization, impairments, and write-ups, and Note 18 – Equity-accounted investments.

Risk for the Consolidated Financial Statements

The carrying value of equity-accounted investments amounts to EUR 6,668 mn as of December 31, 2023, including mainly ADNOC Refining and Trading CGU (Abu Dhabi Oil Refining Company and ADNOC Global Trading LTD), “Borouge investments” (Borouge PLC and Borouge 4 LLC) and Baystar (Bayport Polymers LLC).
The assessment of the recoverable amount of equity-accounted investments requires judgment and estimates in the following areas:

_►determining whether there is an indication that the investment should be impaired, or there is an indication that an impairment loss recognized in prior periods may no longer exist or may have decreased; and
_►measuring any such impairment loss or impairment reversal.

The key assumptions considered by the Group in assessing the recoverable amount of the equity-accounted investment Baystar include margin forecasts, future production volumes, discount rates as well as perpetual growth rates. Despite the successful operational launch of the cracker of Baystar in 2022 there is still a risk remaining in relation to cash flow projections due to equipment calibration of the cracker and the operational launch of the polymerization plant “Bay 3”. In order to address this risk, the Group estimates the recoverable amount using the discounted cash flow method. Given the complexity of the impairment model, the estimation uncertainty over input data and parameters used and the immanent judgment, the recoverability of the equity-accounted investment Baystar is considered as a key audit matter.
For the investment Borouge PLC, which is listed on the Abu Dhabi stock exchange, there is a risk that the market value will fall below the carrying amount of the investment.
For the investment Borouge 4 LLC, which is in the process of constructing a chemical plant in Abu Dhabi, there is a risk of significant delays in the construction of the plant.
For the ADNOC Refining and Trading CGU there is a risk that an existing indicator for impairment is not detected.

Overall, there is a risk for the consolidated financial statements that the valuation of equity-accounted investments is misstated.

Our response

We assessed the recoverability of equity-accounted investments as follows:

_►We obtained an understanding over the process regarding the identification of indicators for impairment and the determination of key assumptions underlying the recoverable amount of the equity-accounted investments.
_►We compared the carrying amount for Borouge PLC with the proportionate market capitalization.
_►We used the Group’s documentation for Borouge 4 LLC to assess whether significant delays in the construction process had occurred and discussed with management.
_►We assessed management’s analysis of indicators for impairment for the ADNOC Refining and Trading CGU.
_►We assessed the adequacy of the disclosures in the consolidated financial statements.

For Baystar we performed the following steps:

_►We compared the main assumptions for volumes sold and industry margins used within the future cash flow models to those included in available budgets.
_►We analyzed margin forecasts with external market data and other publicly available information.
_►We challenged the assumptions in the discounted cash flow model by performing a sensitivity analysis, considering a range of likely outcomes based on various scenarios.
_►With the assistance of our valuation specialists, we assessed a range of reasonable input assumptions for determining discount rates and perpetual growth rates.
_►We verified the mathematical accuracy of the valuation models.

Valuation of provisions for decommissioning and restoration obligations

Refer to Note 3 – Accounting policies, judgments, and estimates and Note 25 – Provisions.

Risk for the Consolidated Financial Statements

Provisions for decommissioning and restoration obligations of EUR 4,148 mn are recorded in the consolidated financial statements as of December 31, 2023.
As described in Note 3.2s, the Group’s core activities regularly lead to obligations related to dismantling and removal, asset retirement, and soil remediation activities. Most of these activities are planned to occur many years in the future and may also be affected by climate-risk matters and energy transition, while decommissioning technologies, costs, and regulations are constantly changing.
The estimation of provisions for decommissioning and restoration obligations is thus a judgmental area as it involves a number of key estimates related to future costs and timing of decommissioning, inflation, and discount rate assumptions.
There is a risk for the consolidated financial statements that the valuation of provisions for decommissioning and restoration obligations is misstated.

Our response

We assessed the valuation of provisions for decommissioning and restoration obligations as follows:

_►We obtained an understanding, evaluated the design and implementation, and tested the operating effectiveness of key internal controls over the Group’s process to calculate the present value of the estimated future costs for decommissioning and restoration obligations in accordance with local regulation and requirements.
_►We assessed the completeness and accuracy of the assets subject to decommissioning and restoration obligations, especially by understanding the process to determine whether a legal or constructive obligation exists at the reporting date and by comparing the significant additions to property, plant, and equipment to the Group’s assessment of new decommissioning and restoration obligations.

Future costs and timing of decommissioning

_►We confirmed that the estimated dates used for decommissioning are consistent with assumptions in other areas, especially impairment testing on oil and gas assets and estimation of oil and gas reserves.
_►We verified the supporting evidence for any material revision in cost estimates during the period.

Discount and inflation rates

_►With the support of our valuation specialists, we analyzed inflation rates and discount rates by comparing them with market and industry-specific benchmarks.

Other procedures

_►We tested the mathematical accuracy of the decommissioning and restoration obligation calculation.
_►We assessed the adequacy of the disclosures in the consolidated financial statements.

Accounting for complex transactions in the gas supply and trading function

Refer to Note 3 – Accounting policies, judgments, and estimates, Note 30 – Risk Management, and Note 31 – Fair value hierarchy.

Risk for the Consolidated Financial Statements

The Group’s activities are exposed to a number of market risks including gas price and volume risks, which are managed using gas forward and future contracts, classified as derivative financial instruments or for which the own-use exemption is applied.
As of December 31, 2023, derivative assets related to gas sales and purchases were EUR 709 mn and derivative liabilities were EUR 386 mn.
We considered the accounting in the gas supply and trading function as a key audit matter due to the volume of gas supply and trading transactions, complexity of underlying accounting systems, significant judgements required for the own-use exemption application, and different types of transactions including those requiring offsetting adjustments due to the nature of the supply and trading contractual arrangements.
There is a risk for the consolidated financial statements that derivative assets and liabilities as well as provisions for contracts, for which the own-use exemption is applied, are misstated.

Our response

We evaluated the accounting for complex transactions in the gas supply and trading function as follows:

_►We obtained an understanding, evaluated the design and implementation, and tested the operating effectiveness of key internal controls in the gas supply and trading function.
_►We inspected significant long-term supply contract agreements.
_►We evaluated the completeness, integrity, and accuracy of gas supply and trading transactional data.
_►We assessed whether the methodology adopted for the accounting of gas trading and supply derivative financial instruments are consistent with IFRS 9 – Financial Instruments and IAS 32 – Financial Instruments: Presentation.
_►We assessed the accounting treatment of different types of supply and trading portfolios.
_►We recalculated the impact of offsetting adjustments impacting consolidated statement of financial position, consolidated income statement, and consolidated statement of comprehensive income.

Other Matter

The audit of the consolidated financial statements of OMV Aktiengesellschaft as of December 31, 2022, was performed by another auditor, who expressed an unqualified audit opinion on the consolidated financial statements dated March 9, 2023.

Other Information

Management is responsible for other information. Other information is all information provided in the annual report, other than the consolidated financial statements, the group management report and the auditor’s report.
Our opinion on the consolidated financial statements does not cover other information and we do not provide any kind of assurance thereon.
In conjunction with our audit, it is our responsibility to read this other information and to assess whether, based on knowledge gained during our audit, it contains any material inconsistencies with the consolidated financial statements or any apparent material misstatement of fact.
If, based on the work we have performed, we conclude that there is a material misstatement of fact in other information, we must report that fact. We have nothing to report in this regard.

Responsibilities of Management and the Audit Committee for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU, the additional requirements pursuant to Section 245a UGB (Austrian Commercial Code) as well as other legal or regulatory requirements and for such internal controls as management determines are necessary to enable the preparation of the consolidated financial statements that are free from material misstatement, whether due to fraud or error.
Management is also responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless management either intents to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

The Audit Committee is responsible for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our audit opinion. Reasonable assurance represents a high level of assurance, but provides no guarantee that an audit conducted in accordance with the AP Regulation and Austrian Standards on Auditing (and therefore ISAs), will always detect a material misstatement, if any. Misstatements may result from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with the AP Regulation and Austrian Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit.
Moreover:

_►We identify and assess the risks of material misstatement in the consolidated financial statements, whether due to fraud or error, we design and perform audit procedures responsive to those risks and obtain sufficient and appropriate audit evidence to serve as a basis for our audit opinion. The risk of not detecting material misstatements resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or override of internal control.
_►We obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal controls.
_►We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
_►We conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our audit report to the respective note in the consolidated financial statements. If such disclosures are not appropriate, we will modify our audit opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
_►We evaluate the overall presentation, structure and content of the consolidated financial statements, including the notes, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
_►We obtain sufficient appropriate audit evidence regarding the financial information of the entities and business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
_►We communicate with the Audit Committee regarding, amongst other matters, the planned scope and timing of our audit as well as significant findings, including any significant deficiencies in internal control that we identify during our audit.
_►We communicate to the Audit Committee that we have complied with the relevant professional requirements in respect of our independence, that we will report any relationships and other events that could reasonably affect our independence and, where appropriate, the related safeguards.
_►From the matters communicated with the Audit Committee, we determine those matters that were of most significance in the audit i.e. key audit matters. We describe these key audit matters in our auditor’s report unless laws or other legal regulations preclude public disclosure about the matter or when in very rare cases, we determine that a matter should not be included in our audit report because the negative consequences of doing so would reasonably be expected to outweigh the public benefits of such communication.

Report on Other Legal and Regulatory Requirements

Group Management Report

In accordance with Austrian company law, the Group management report is to be audited as to whether it is consistent with the consolidated financial statements and prepared in accordance with legal requirements.
Management is responsible for the preparation of the Group management report in accordance with Austrian company law and other legal or regulatory requirements.
We have conducted our audit in accordance with generally accepted standards on the audit of group management reports.

Opinion

In our opinion, the Group management report is consistent with the consolidated financial statements and has been prepared in accordance with legal requirements. The disclosures pursuant to Section 243a UGB (Austrian Commercial Code) are appropriate.

Statement

Based on our knowledge gained in the course of the audit of the consolidated financial statements and our understanding of the Group and its environment, we did not note any material misstatements in the Group management report.

Additional information in accordance with Article 10 AP Regulation

We were elected as auditors at the Annual General Meeting on May 31, 2023, and were appointed by the Supervisory Board on June 5, 2023 to audit the consolidated financial statements of the Group for the financial year ending on December 31, 2023.
We have been auditors of the Group since the consolidated financial statements at December 31, 2023.
We declare that our opinion expressed in the “Report on the Consolidated Financial Statements” section of our report is consistent with our additional report to the Audit Committee, in accordance with Article 11 AP Regulation.
We declare that we have not provided any prohibited non-audit services (Article 5 Paragraph 1 AP Regulation) and that we have ensured our independence throughout the course of the audit, from the audited Group.

Engagement Partner

The engagement partner is Mr Karl Braun.
Vienna
March 6, 2024
KPMG Austria GmbH
Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
Karl Braun m.p.
Wirtschaftsprüfer
(Austrian Chartered Accountant)

CONSOLIDATED FINANCIAL

STATEMENTS AND NOTES

86 — 211

88 — Consolidated Income Statement for 2023

89 — Consolidated Statement of Comprehensive Income for 2023

90 — Consolidated Statement of Financial Position as of December 31, 2023

92 — Consolidated Statement of Changes in Equity in 2023

94 — Consolidated Statement of Cash Flows for 2023

Notes to the Consolidated Financial Statements

95 — Basis of Preparation and Accounting Policies

114 — Segment Reporting

119 — Notes to the Income Statement

129 — Notes to the Statement of Financial Position

165 — Supplementary Information on the Financial Position

185 — Other Information

202 — Oil and Gas Reserve Estimation and Disclosures (unaudited)

211 — Executive Board

Consolidated Income Statement for 2023

Consolidated Income Statement
In EUR mn
	Note	2023	2022
Sales revenues	5, 6	39,463	62,298
Other operating income	7	742	1,644
Net income from equity-accounted investments	7, 18	326	869
Total revenues and other income		40,531	64,811
Purchases (net of inventory variation)	19	–24,222	–39,298
Production and operating expenses		–4,004	–4,542
Production and similar taxes		–925	–1,663
Depreciation, amortization, impairments and write-ups	8	–2,463	–2,484
Selling, distribution, and administrative expenses		–3,006	–2,689
Exploration expenses	8, 9	–222	–250
Other operating expenses	10	–462	–1,639
Operating Result		5,226	12,246
Dividend income	33	10	11
Interest income	12, 33	473	269
Interest expenses	12, 33	–415	–417
Other financial income and expenses¹	12, 33	–138	–1,345
Net financial result		–70	–1,481
Profit before tax prior to solidarity contribution		5,156	10,765
Solidarity contribution on refined crude oil	13	–552	—
Profit before tax		4,604	10,765
Taxes on income and profit	14	–2,687	–5,590
Net income for the year		1,917	5,175
thereof attributable to stockholders of the parent		1,480	3,634
thereof attributable to hybrid capital owners		72	71
thereof attributable to non-controlling interests		366	1,470
Basic Earnings Per Share in EUR	15	4.53	11.12
Diluted Earnings Per Share in EUR	15	4.52	11.11

¹Includes in 2022 impairment of EUR 1,004 mn related to the financing agreements for Nord Stream 2.

Consolidated Statement of Comprehensive Income for 2023

Consolidated Statement of Comprehensive Income
In EUR mn
	Note	2023	2022
Net income for the year		1,917	5,175

Currency translation differences		–542	603
Gains (+)/losses (–) arising during the year	23	–542	250
Reclassification of gains (–)/losses (+) to the income statement	7, 10	–0	354
Gains (+)/losses (–) on hedges	30	–360	40
Gains (+)/losses (–) arising during the year		–320	377
Reclassification of gains (–)/losses (+) to the income statement		–40	–338
Share of other comprehensive income of equity-accounted investments	18	–4	0
Total of items that may be reclassified (“recycled”) subsequently to the income statement		–907	643

Remeasurement gains (+)/losses (–) on defined benefit plans	25	–58	263
Gains (+)/losses (–) on equity investments	20	–2	2
Gains (+)/losses (–) on hedges that are subsequently transferred to the carrying amount of the hedged item	30	–27	–67
Share of other comprehensive income of equity-accounted investments	18	5	6
Total of items that will not be reclassified (“recycled”) subsequently to the income statement		–83	204

Income taxes relating to items that may be reclassified (“recycled”) subsequently to the income statement		83	–5
Income taxes relating to items that will not be reclassified (“recycled”) subsequently to the income statement		14	–26
Total income taxes relating to components of other comprehensive income	23	97	–30

Other comprehensive income for the year, net of tax	23	–893	817
Total comprehensive income for the year		1,025	5,992
thereof attributable to stockholders of the parent		737	4,381
thereof attributable to hybrid capital owners		72	71
thereof attributable to non-controlling interests		216	1,540

Consolidated Statement of Financial Position as of December 31, 2023

Assets
In EUR mn
	Note	2023	2022
			restated¹
Intangible assets	16	1,779	2,510
Property, plant, and equipment	17	20,081	19,317
Equity-accounted investments	18	6,668	7,294
Other financial assets	20	1,704	1,999
Other assets	21	165	115
Deferred taxes	27	1,164	1,150
Non-current assets		31,559	32,384
Inventories	19	3,529	4,834
Trade receivables	20	3,455	4,222
Other financial assets	20	2,130	3,929
Income tax receivables		48	97
Other assets	21	1,351	1,632
Cash and cash equivalents	28	6,920	8,090
Current assets		17,432	22,803
Assets held for sale	22	1,671	1,676
Total assets		50,663	56,863

¹Comparative information dated December 31, 2022, has been restated. For further details see Note 3 – Accounting policies, judgments, and estimates.

Equity and Liabilities
In EUR mn
	Note	2023	2022
			restated¹
Share capital		327	327
Hybrid capital		2,483	2,483
Reserves		15,428	16,339
Equity of stockholders of the parent		18,238	19,149
Non-controlling interests	24	7,131	7,478
Total equity	23	25,369	26,628
Provisions for pensions and similar obligations	25	966	997
Bonds	26	5,534	6,030
Lease liabilities	26	1,404	1,322
Other interest-bearing debts	26	1,043	1,359
Provisions for decommissioning and restoration obligations	25	4,079	3,714
Other provisions	25	422	377
Other financial liabilities	26	316	489
Other liabilities	26	102	124
Deferred taxes	27	962	1,194
Non-current liabilities		14,826	15,607
Trade payables	26	3,955	5,259
Bonds	26	540	1,290
Lease liabilities	26	181	155
Other interest-bearing debts	26	427	128
Income tax liabilities		859	2,449
Provisions for decommissioning and restoration obligations	25	69	82
Other provisions	25	777	939
Other financial liabilities	26	1,424	2,172
Other liabilities	26	1,613	1,527
Current liabilities		9,846	14,001
Liabilities associated with assets held for sale	22	622	626
Total equity and liabilities		50,663	56,863

¹Comparative information dated December 31, 2022, has been restated. For further details see Note 3 – Accounting policies, judgments, and estimates.

Consolidated Statement of Changes in Equity in 2023

Consolidated Statement of Changes in Equity in 2023¹
In EUR mn
	Share capital	Capital reserves	Hybrid capital	Revenue reserves	Currency translation differences

January 1, 2023	327	1,517	2,483	15,076	–370
Net income for the year	—	—	—	1,551	—
Other comprehensive income for the year	—	—	—	–46	–474
Total comprehensive income for the year	—	—	—	1,505	–474
Dividend distribution and hybrid coupon	—	—	—	–1,746	—
Share-based payments	—	3	—	—	—
Increase (+)/decrease (–) in non-controlling interests	—	—	—	—	—
Reclassification of cash flow hedges to balance sheet	—	—	—	—	—
December 31, 2023	327	1,520	2,483	14,835	–844

Consolidated Statement of Changes in Equity in 2022¹
In EUR mn
	Share capital	Capital reserves	Hybrid capital	Revenue reserves	Currency translation differences

January 1, 2022	327	1,514	2,483	12,008	–910
Net income for the year	—	—	—	3,705	—
Other comprehensive income for the year	—	—	—	206	543
Total comprehensive income for the year	—	—	—	3,911	543
Dividend distribution and hybrid coupon	—	—	—	–847	—
Share-based payments	—	4	—	—	—
Increase (+)/decrease (–) in non-controlling interests	—	—	—	5	–2
Reclassification of cash flow hedges to balance sheet	—	—	—	—	—
December 31, 2022	327	1,517	2,483	15,076	–370

¹See Note 23 – Equity of stockholders of the parent and Note 24 – Non-controlling interests



Hedges	Share of other compr. income of equity- accounted investments	Treasury shares	Equity of stockholders of the parent	Non-controlling interests	Total equity

200	–82	–2	19,149	7,478	26,628
—	—	—	1,551	366	1,917
–223	1	—	–743	–150	–893
–223	1	—	808	216	1,025
—	—	—	–1,746	–609	–2,355
—	—	1	3	—	3
—	—	—	—	36	36
23	—	—	23	9	32
–0	–81	–2	18,238	7,131	25,369



Hedges	Share of other compr. income of equity- accounted investments	Treasury shares	Equity of stockholders of the parent	Non-controlling interests	Total equity

173	–86	–3	15,505	6,491	21,996
—	—	—	3,705	1,470	5,175
–6	4	—	746	71	817
–6	4	—	4,451	1,540	5,992
—	—	—	–847	–621	–1,467
—	—	1	4	—	4
—	—	—	3	45	48
33	—	—	33	23	56
200	–82	–2	19,149	7,478	26,628

Consolidated Statement of Cash Flows for 2023

Consolidated Statement of Cash Flows
In EUR mn
	Note	2023	2022
Net income for the year		1,917	5,175
Depreciation, amortization, impairments and write ups	8	2,619	2,667
Deferred taxes	14	175	85
Current taxes	14	2,512	5,505
Income taxes paid		–3,920	–4,266
Tax refunds		41	68
Losses (+)/gains (–) from disposal of non-current assets and businesses	7, 10	–2	–344
Income from equity-accounted investments and other dividend income	7, 20, 33	–336	–879
Dividends received from equity-accounted investments and other companies	18, 37	793	812
Interest expenses	12, 33	148	154
Interest paid		–181	–182
Interest income	12, 33	–459	–264
Interest received		400	247
Increase (+)/decrease (–) in personnel provisions	25	–102	–13
Net change in other provisions and emissions certificates	2, 25	–72	–195
Other changes	28	1,106	1,274
Cash flow from operating activities excluding net working capital effects		4,638	9,843
Decrease (+)/increase (–) in inventories	19	1,320	–2,188
Decrease (+)/increase (–) in receivables	20, 21	1,043	–397
Increase (+)/decrease (–) in liabilities	26	–1,293	501
Changes in net working capital components		1,071	–2,084
Cash flow from operating activities		5,709	7,758
Investments
Intangible assets and property, plant, and equipment	16, 17	–3,487	–2,943
Investments, loans, and other financial assets	20	–635	–736
Acquisitions of subsidiaries and businesses net of cash acquired		–52	—
Disposals
Cash inflows in relation to non-current assets and financial assets		183	1,487
Cash inflows from the sale of subsidiaries and businesses, net of cash disposed	4	965	440
Cash disposed due to the loss of control		—	–214
Cash flow from investing activities		–3,027	–1,966
Repayments of long-term borrowings	28	–1,477	–1,047
Increase (+)/decrease (–) in short-term borrowings	28	40	–184
Increase in non-controlling interest	24	—	30
Decrease in non-controlling interest		–1	–1
Dividends paid to stockholders of the parent (incl. hybrid coupons)	23	–1,746	–847
Dividends paid to non-controlling interests	24	–587	–612
Cash flow from financing activities		–3,771	–2,660
Effect of foreign exchange rate changes on cash and cash equivalents		–25	–72
Net increase (+)/decrease (–) in cash and cash equivalents		–1,114	3,060
Cash and cash equivalents at beginning of year	28	8,124	5,064
Cash and cash equivalents at end of year	28	7,011	8,124
Thereof cash disclosed within Assets held for sale		91	35
Cash and cash equivalents presented in the consolidated statement of financial position		6,920	8,090

Notes to the Consolidated Financial Statements

Basis of Preparation and Accounting Policies

1 Basis of preparation

OMV Aktiengesellschaft (registered in the Austrian Register of Companies with its office based at Trabrennstraße 6–8, 1020 Vienna, Austria) is an integrated, international oil, gas, and chemicals company with activities in the divisions Chemicals & Materials, Fuels & Feedstock, and Energy.

These financial statements have been prepared and are in compliance with International Financial Reporting Standards (IFRSs) as adopted by the EU and in accordance with the supplementary accounting regulations pursuant to Sec. 245a, Para. 1 of the Austrian Commercial Code (UGB). The financial year corresponds to the calendar year.

The consolidated financial statements are in general based on the historical cost principle, except for certain items that have been measured at fair value as described in Note 3 – Accounting policies, judgments, and estimates. The accounting policies adopted are consistent with those of the previous financial year, except where otherwise indicated.

The consolidated financial statements for 2023 have been prepared in million EUR (EUR mn, EUR 1,000,000). Accordingly, there may be rounding differences.
The consolidated financial statements comprise the financial statements of OMV Aktiengesellschaft and the entities it controls (its subsidiaries) as at December 31, 2023. The financial statements of all consolidated companies are prepared in accordance with uniform Group-wide accounting policies. A list of subsidiaries, equity-accounted investments, and other investments is included under Note 40 – Direct and indirect investments of OMV Aktiengesellschaft, including consolidation method, business segment, place of business, and interest held by OMV.

The consolidated financial statements for 2023 are subject to approval and release for publication by the Supervisory Board on March 7, 2024.

2 Effects of climate change and the energy transition

OMV has considered the short- and long-term effects of climate change and the energy transition in preparing the consolidated financial statements. They are subject to uncertainty, and they may have a significant impact on the assets and liabilities currently reported by the Group.

The Group is exposed to physical climate risks as well as risks associated with the energy transition, including risks for stranded assets, decrease in demand for fossil products, and regulatory risks. The risks from climate change and their management are described in the Directors’ Report, section Risk Management.

OMV’s targets and commitments to decarbonization

In 2022, OMV defined quantitative short-, medium-, and long-term targets for its emissions reductions and committed to becoming a net-zero emissions company by 2050 (Scopes 1, 2, and 3). For Scope 1 and 2 emissions, OMV is aiming for an absolute reduction of at least 30% by 2030 and of at least 60% by 2040. For Scope 3 emissions, OMV is striving for a reduction of at least 20% by 2030 and of 50% by 2040.¹⁴ These absolute GHG emissions reductions and the increase in zero-carbon product energy sales are the key to reducing the carbon intensity of OMV’s energy supply, pursuing a decline of at least 20% by 2030 and of at least 50% by 2040.¹⁵

Voluntary carbon offset credits are only used to a limited extent. The maximum acceptable GHG emission reduction contribution from carbon offsets to achieve the absolute 2030 and 2040 GHG targets is 5% of the total absolute required emissions reduction. To achieve the net-zero status by 2050, carbon offsets shall only be used to neutralize the remaining gross emissions that can otherwise not be eliminated.
According to the most recent mid-term planning, OMV plans to invest organic capital expenditure in excess of EUR 8 bn in 2024–2028 for projects relating to sustainable business transformation, development of low-carbon business solutions, and energy efficiency measures.

Effects on estimation uncertainty

The significant accounting estimates performed by management incorporate the future effects of OMV’s own strategic decisions and commitments to having its portfolio aligned with the energy transition targets, short and long-term impacts of climate risks and the energy transition to lower carbon energy sources, together with management’s best estimate on global supply and demand, including forecast commodities prices.
Nevertheless, there is significant uncertainty surrounding the changes in the mix of energy sources over the next 30 years and the extent to which such changes will meet the ambitions of the Paris Agreement. While companies can commit to such ambitions, financial reporting under IFRS requires the use of assumptions that represent management’s current best estimate of the range of expected future economic conditions, which may differ from such targets. These assumptions include expectations about future worldwide decarbonization efforts and the transition of economies to net zero emissions.

OMV uses two different scenarios: the base case and the “net zero emissions by 2050” case. The scenarios differ in the underlying expectations of the pace of the future worldwide decarbonization and lead to different assumptions for demand, prices, and margins of fossil commodities.

The base case is built on a scenario developed by the internal Market Intelligence department and assumes that all decarbonization pledges announced by governments around the world will be implemented in full and on time. In this scenario, the temperature increase by 2100 will be limited to 1.7°C with a probability of 50%. The underlying demand and price developments of fossil commodities are in line with the Announced Pledges Scenario (APS) which was modeled by the International Energy Agency (IEA).¹⁶ The base case is used for mid-term planning as well as for estimates relating to the measurement of various items in the Group financial statements, including impairment testing of non-financial assets and the measurement of provisions.

The “net zero emissions by 2050” case which is based on a faster decarbonization path than the base case is used for calculating sensitivities in order to recognize the uncertainty of the pace of the energy transition and to better understand the financial risk of the energy transition on the existing assets of OMV. The assumptions used in this case are in line with the Net Zero Emissions by 2050 (NZE) scenario modeled by the IEA.¹⁶ It shows a pathway for the global energy sector to achieve net zero GHG emissions by 2050 and is compatible with limiting the temperature increase to 1.5°C.
For investment decisions, business cases are calculated using the price and demand assumptions according to the base case. These assumptions are the same as for mid-term planning and impairment tests. In addition, a stress test based on the commodity price assumptions of the “net zero emissions by 2050” scenario is mandatory for all investment decisions in order to assess the risk of stranded assets in this decarbonization scenario.

Recoverability of assets
The following table summarizes the carrying amounts of the Group’s intangible assets (incl. goodwill), PPE, and at-equity-accounted investments disaggregated according to the type of assets as at December 31, 2023:

Carrying amounts as of December 31, 2023
in EUR mn
	Segment	Intangible assets (incl. goodwill)	Property, plant and equipment	Equity- accounted investments

Chemical production and recycling (incl. C&M part of refineries)	C&M	975	5,643	4,747
Refining	F&F	101	3,255	1,655
Retail	F&F	23	1,129	—
Oil and gas exploration and evaluation	Energy	270	—	—
Oil and gas production	Energy	356	9,313	264
Gas storages and power plant	Energy	17	523	0
Other		38	217	2
Total		1,779	20,081	6,668

Commodity price assumptions have a significant impact on the recoverable amounts of E&A assets, PPE, and goodwill. For the impairment tests, the price set as defined for mid-term planning and derived from the base case as described above was used. Costs for CO₂ emissions are taken into account to the extent that carbon pricing schemes are in place in the respective countries. Disclosures on the impairment tests are included in Note 3.2j – Accounting policies, judgments, and estimates and Note 8 – Depreciation, amortization, impairments and write-ups.
The base case price assumptions and the EUR–USD exchange rates used for impairment testing are listed below (in 2023 real terms for 2023 and 2022 real terms for 2022):

2023 Price assumptions for base case and impairment testing

	2024	2025	2026	2027	2028	2030	2040	2050
Brent oil price (USD/bbl)	78	71	65	64	59	59	55	55
EUR–USD exchange rate	1.10	1.10	1.15	1.15	1.15	1.15	1.15	1.15
Brent oil price (EUR/bbl)	71	65	57	56	52	52	48	48
Gas price THE (EUR/MWh)	44	38	34	25	22	22	22	22
CO₂ price EUA (EUR/t)	92	99	106	112	118	130	144	144

2022 Price assumptions for base case and impairment testing

	2023	2024	2025	2026	2027	2030	2040	2050
Brent oil price (USD/bbl)	78	72	66	60	59	59	55	55
EUR–USD exchange rate	1.10	1.10	1.10	1.10	1.10	1.10	1.10	1.10
Brent oil price (EUR/bbl)	71	65	60	55	54	54	50	50
Gas price THE (EUR/MWh)	89	62	44	33	25	22	22	22
CO₂ price EUA (EUR/t)	83	89	94	99	104	117	129	107

Sensitivities based on the “net zero emissions by 2050” climate scenario have been calculated to test the resilience of assets against risks from the energy transition.
The assumptions used in the sensitivity analysis are included in the table below (prices in 2023 real terms):

2023 Price assumptions for “net zero emissions by 2050” sensitivities

	2024	2025	2026	2027	2028	2030	2040	2050
Brent oil price (USD/bbl)	58	52	47	46	45	35	26	18
EUR–USD exchange rate	1.15	1.15	1.15	1.15	1.15	1.15	1.15	1.15
Brent oil price (EUR/bbl)	53	48	41	40	39	31	22	16
Gas price THE (EUR/MWh)	29	27	25	18	16	16	13	11
CO₂ prices (EUR/t):
EUA/Advanced economies with net zero pledges	102	109	115	121	127	138	201	251
Emerging and developing economies with net zero pledges	46	54	62	69	76	89	157	201
Other emerging and developing economies	5	5	5	5	9	24	82	181

The “net zero emissions by 2050” sensitivities were calculated using a simplified method and are based on a DCF model in line with the impairment testing calculations. The cash flows of oil and gas assets are based on adjusted mid-term planning for the next five years and life of field planning for the remaining years until abandonment. The “net zero emissions by 2050” case does not include any changes to input factors other than prices and volumes. The calculation considers an earlier economic cut-off date for oil and gas fields if the revenues impacted by lower prices are not sufficient to cover the costs. But it especially does not take into account any restructurings, cost reduction measures, divestments or other changes in the business plans that are not included in the base case. The amounts presented therefore should not be seen as a best estimate of an expected impairment impact following such a scenario.
The CO₂ costs considered for oil and gas assets are based on the CO₂ prices in the IEA NZE by 2050 scenario and 100% of OMV’s share of direct emissions from 2031 onward.
The sensitivities calculated based on the “net zero emissions by 2050” case indicate that there is a risk of impairments of oil and gas assets. The carrying amounts of the oil and gas assets with proved reserves (incl. E&P at-equity investments) would have to be decreased by EUR 4.4 bn and goodwill would decrease by EUR 0.3 bn. In addition, all oil and gas assets with unproved reserves would be abandoned with a pre-tax loss of EUR 0.3 bn. Total post-tax impact on profit or loss would be EUR 3.6 bn.
As far as the C&M segment is concerned, management would not foresee negative effects on the overall demand of polyolefin solutions in the accelerated decarbonization scenario. Pricing of polyolefins is mainly driven by base chemical markets like naphtha, ethane, and propane. An accelerated change in the world’s energy landscape might lead to different price movements in those relevant base chemicals, temporarily affecting the profitability of some assets in the polyolefin value chain. Driven by the expected strong demand of polyolefin solutions, management does not foresee any substantial negative effects on the overall integrated value chain.
OMV plans to transform its European refineries so that they will stay competitive as the decarbonization of the fuels and chemical sector progresses. Crude oil distillation throughput will be decreased. The product mix will be adapted to reduce heating oil and diesel output while increasing the chemical yield. In parallel, a production portfolio of renewable fuels and sustainable chemical feedstocks will be developed. Taking into account these transformation plans, management does not foresee a significant risk that the existing refinery assets in Europe would not be recoverable in the “net zero emissions by 2050” scenario.
It is expected that declines in demand for fossil products caused by the energy transition will progress more slowly outside the European Union. The investment in ADNOC Refining is assumed to be resilient also in a Paris Agreement-aligned energy transition scenario thanks to its access to markets in the Middle East and Asia.
For retail, cash flows of less than ten years were sufficient to demonstrate the recoverability of the carrying amounts of the currently existing assets. Consequently, there was no need to perform a calculation under the “net zero emissions by 2050”.
Useful lives
The pace of the energy transition may have an impact on the remaining useful lives of assets. Fixed assets in the C&M business will be fully depreciated over the next 5 to 15 years. The depreciable fixed assets in the refineries will in average be fully depreciated over the next 9 years and in retail over the next 5 to 10 years. Demand for petroleum and chemical products is expected to stay robust over this period of time. It is therefore predicted that the energy transition will not have a material impact on the expected useful lives of property, plant, and equipment in the F&F and C&M segments.
In the Energy segment, oil and gas assets are depreciated using the unit-of-production method as described in Note 3.2h which is based on proved reserves. According to the current production plans, 40% of proved reserves as at December 31, 2023, will be left by 2030, 9% by 2040, and less than 2% by 2050. The existing oil and gas assets with proved reserves (without considering any future investments) will therefore be significantly depreciated by 2030 and, with the exception of one field, fully depreciated by 2050.

Decommissioning provisions
The carrying amounts and maturity profile of decommissioning provisions are as follows:

Estimation of maturities and cash outflows of decommissioning and restoration obligations¹
In EUR mn
	2023
	Carrying amount	Undiscounted inflated costs
≤1 year	69	78
1–10 years	1,239	1,762
11–20 years	2,421	4,673
21–30 years	233	730
>30 years	185	679
Total	4,148	7,922

¹Mainly related to decommissioning and restoration obligations in the Energy business segment

The speed of the energy transition influences the timing of the decommissioning of oil and gas facilities. In the “net zero emissions by 2050” scenario, some oil and gas fields could be shut down earlier. Given the low real interest rates used in the calculation and assuming a similar yearly abandonment capacity, there would not be any material impact on the book value of the decommissioning provisions.

For refinery and chemical sites built on owned land, no decommissioning provisions are recognized because these plants are long-lived assets that will continue to be used in an energy transition scenario. For OMV’s European refinery sites, there are significant investments planned in the next years with the goal of transforming them in the direction of renewable fuels and chemical feedstock production with deeper chemicals integration. Furthermore, ADNOC Refining is expected to continue to operate under a Paris-aligned scenario because of its favorable positioning in the market.

Deferred tax assets

In the “net zero emissions by 2050” scenario, deferred tax assets related to additional impairments would for the most part be considered recoverable. No material effects with respect to the net deferred tax asset position of the Austrian tax group would be expected.

Impact on ability to pay dividend

The management assessed the impact of the “net zero emissions by 2050” scenario on the ability of OMV Aktiengesellschaft to pay dividend. The potential impairment loss in this scenario 2023 would not impact the ability to pay dividends in 2024 because of the strong result and financial reserves at the level of the stand-alone financial statements of OMV Aktiengesellschaft which are the basis for dividend payments.

Emissions certificates and CO₂ costs

Directive 2003/87/EC of the European Parliament and the European Council established a greenhouse gas emissions trading scheme, requiring member states to draw up national plans to allocate emissions certificates. Under this scheme, affected OMV Group companies are entitled to a yearly allocation of free emissions certificates.
The New Zealand government established a greenhouse gas emissions trading scheme under the Climate Change Response Act 2002. Under this scheme, New Zealand companies are not entitled to receive free emissions certificates. OMV has purchased certificates to meet its own use liability. Apart from purchased certificates, each sale of gas to domestic customers in New Zealand creates an obligation for OMV. To meet this obligation, OMV receives emission certificates from these customers. The certificates received are treated as pass-through items.
In Germany, the Fuel Emissions Trading Act (BEHG; Brennstoffemissionshandelsgesetz) is the basis for the national emissions trading scheme for the heating and transport sectors. It obliges companies that place fuels on the market to acquire fee-based certificates from the German Emissions Trading Authority (DEHSt, Deutsche Emissionshandelsstelle). The certificates are currently not eligible for trading and there are no free allocations.

Total expensed CO₂ costs and carbon taxes amounted to EUR 368 mn in 2023 (2022: EUR 392 mn). The provisions for CO₂ emissions are presented within current other provisions and amounted to EUR 437 mn in 2023 (2022: EUR 469 mn). The accounting policies for emissions certificates are described in Note 3 – Accounting policies, judgments, and estimates.
In 2024, OMV expects to surrender 7,614 thousand emissions certificates from European Trading Scheme, 3,708 thousand BEHG certificates and 2,769 thousand NZ certificates for (not yet externally verified) emissions, of which 2,671 thousand emissions certificates are expected to be received from customers in New Zealand.

Emissions certificates¹
Number of certificates, in thousands
	2023			2022
	European Trading Scheme	NZ Trading Scheme	DE Trading Scheme	European Trading Scheme	NZ Trading Scheme	DE Trading Scheme
Certificates held as of January 1	13,569	1,901	3,183	11,731	252	3,617
Free allocation for the year	5,541	—	—	7,742	—	—
Certificates surrendered²	–9,743	–2,292	–3,504	–10,792	–2,567	–3,833
Net purchases and sales during the year	3,429	156	3,793	4,889	293	3,398
Certificates received from customers	—	2,314	—	—	3,924	—
Changes in the consolidated group³	–1,292	—	—	—	—	—
Certificates held as of December 31	11,506	2,079	3,472	13,569	1,901	3,183

¹ One certificate entitles the holder to emit 1 t of green house gases (in CO₂e) during a defined period of time.

² According to verified emissions for the prior year.

³ Relates to the sale of the nitrogen business in Borealis. For details refer to Note 4 – Changes in Group structure.

3 Accounting policies, judgments, and estimates

1) Significant judgments and estimates

Preparation of the consolidated financial statements requires management to make estimates and judgments that affect the amounts reported for assets, liabilities, income, and expenses, as well as the amounts disclosed in the notes. These estimates and assumptions are based on historical experience and other factors that are deemed reasonable at the date of preparation of these financial statements. Actual outcomes could differ from these estimates.
Significant estimates and assumptions were required in particular with regards to the effects of the climate crisis and energy transition. These estimates and assumptions are described below in Note 2 – Effects of climate change and the energy transition.
In addition, estimates and assumptions with significant impact on the OMV Group result were made with respect to oil and gas reserves, the recoverability of assets, provisions, lease contracts, and taxes on income. These are described together with the relevant accounting policies in section 2 of this note and highlighted in gray.

2) Significant accounting policies

a) Business combinations and goodwill

Business combinations are accounted for using the acquisition method. Assets and liabilities of subsidiaries acquired are included at their fair value at the time of acquisition. The non-controlling interests are measured at the proportionate share of the acquiree’s identifiable net assets.

Goodwill is calculated as the excess of the aggregate of the consideration transferred, the amount recognized for non-controlling interest in the acquiree, and the fair value of the equity previously held by OMV in the acquired entity over the net identifiable assets acquired and liabilities assumed. Goodwill is recorded as an asset and tested for impairment at least yearly. Impairments are recorded immediately through profit or loss; subsequent write-ups are not possible. Any gain on a bargain purchase is recognized in profit or loss immediately.

b) Sales revenue

Revenue is generally recognized when control over a product or a service is transferred to a customer. It is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties.
When goods such as crude oil, LNG, oil and chemical products and similar goods are sold, the delivery of each quantity unit normally represents a single performance obligation. Revenue is recognized when control of the goods has transferred to the customer, which is the point in time when legal ownership and the risk of loss have passed to the customer, and is determined on the basis of the Incoterm agreed in the contract with the customer. These sales are conducted with normal credit terms according to the industry standard.
Revenue from the production of crude oil, in which OMV has an interest with other producers, is recognized according to the sales method. This means that revenue is recognized based on the actual sales to third parties, regardless of the Group’s percentage interest or entitlement. An adjustment of production costs is recognized at average cost for the difference between the costs associated with the output sold and the costs incurred based on entitlement to output, with a counter entry in the other assets or liabilities.
In the F&F retail business, revenues from the sale of fuels are recognized when products are supplied to customers. Depending on whether OMV is principal or agent in the sale of shop merchandise, revenue and costs related to such sales are presented gross or net in the income statement. OMV is principal if it controls the goods before they are transferred to the customer, which is mainly indicated by OMV having the inventory risk. At filling stations, payments are due immediately at the time of purchase or, in the case of payments using fuel cards, in the month following the purchase.
OMV’s gas and power supply contracts include a single performance obligation that is satisfied over the agreed delivery period. Revenue is recognized according to the consumption by the customer and in line with the amount OMV has a right to invoice.
In some customer contracts for the delivery of natural gas, the fees charged to the customer comprise a fixed charge plus a variable fee depending on the volumes delivered. These contracts contain only one performance obligation which is to stand-ready for the delivery of gas over a certain period. The revenue from the fixed charges and the variable fees is recognized in line with the amount chargeable to the customer. Gas and power deliveries are billed and paid on a monthly basis.
Gas storage contracts contain a stand-ready obligation to provide storage services over an agreed period of time. Revenue is recognized according to the amount OMV has a right to invoice. These services are billed and paid on a monthly basis.
There are some customer contracts at OMV for the delivery of oil and gas and for the provision of gas storage services that have a term of more than one year. In principle, IFRS 15 requires the disclosure of the total amount of transaction prices allocated to unperformed performance obligations for such contracts. Contracts for the delivery of oil contain variable prices based on market prices on the delivery date, as is common in the oil industry. For these contracts it therefore is not possible to allocate the transaction price to unsatisfied performance obligations. For gas delivery and gas storage contracts OMV applies the practical expedient according to IFRS 15.121 (b), based on which this information need not be disclosed for contracts where revenue is recognized in the amount the entity has a right to invoice. OMV, therefore, does not disclose this information.

c) Revenues from other sources

Revenues from other sources include revenues from commodity contracts that are within the scope of IFRS 9. Sales and purchases of commodities are reported net, when the forward sales and purchase contracts are determined to be for trading purposes and not for the final physical delivery.

In addition, revenues from other sources include an adjustment of revenues because the national oil company’s profit share is considered as income tax in certain production sharing agreements in the E&P business (see Note 3.2f), and realized and unrealized results from the hedging of sales transactions.

d) Exploration expenses

Exploration expenses relate exclusively to the E&P business in the Energy segment and comprise the costs associated with unproved reserves. These include geological and geophysical costs for the identification and investigation of areas with possible oil and gas reserves and administrative, legal, and consulting costs in connection with exploration. They also include all impairments on exploration wells where no proved reserves could be demonstrated.

e) Research and development

Expenditure related to research activities is recognized as an expense in the period in which it is incurred. Research and development (R&D) expenses, which are presented in the income statement in the line Other operating expenses, include all direct and indirect materials, personnel and external services costs incurred in connection with the focused search for new insights related to the development and significant improvement of products, services and processes and in connection with research activities. Development costs are capitalized if the recognition criteria according to IAS 38 are fulfilled.

f) Exploration and production sharing agreements

Exploration and production sharing agreements (EPSAs) are contracts for oil and gas licenses in which the oil or gas production is shared between one or more oil companies and the host country/national oil company in defined proportions. Exploration expenditures are carried by the oil companies as a rule and recovered from the state or the national oil company through so-called “cost oil” in a successful case only. Under certain EPSA contracts the host country’s/national oil company’s profit share represents imposed income taxes and is treated as such for the purpose of the income statement presentation.

g) Intangible assets and property, plant and equipment

Intangible assets and property, plant and equipment are recognized at costs of acquisition or construction (including costs of major inspection and general overhauls). The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the respective asset when a decommissioning provision is recognized (see Note 3.2s). Costs for replacing components are capitalized and carrying values of the replaced parts are derecognized. Costs relating to minor maintenance and repairs are treated as expenses in the year in which they are incurred.

Intangible assets and depreciable property, plant, and equipment (except for oil and gas assets, see Note 3.2h) are amortized or depreciated on a straight-line basis over the useful economic life.

Useful life		Years

Intangible assets
Software		3–7 or license duration
Concessions, licenses, contract-related intangible assets, etc.		3–20 or contract duration
Business-specific property, plant and equipment
C&M	Chemical production facilities	15–20
F&F	Pipelines	20–30
	Storage tanks	40
	Refinery facilities	25
	Filling stations	5–20
Energy	Oil and gas wells	Unit-of-production method
	Gas power plant	8–30
Other property, plant and equipment
Production and office buildings		20–50
Other technical plant and equipment		10–20
Fixtures and fittings		3–15

h) Oil and gas assets

E&P activities are recorded using the successful efforts method. The acquisition costs of geological and geophysical studies before the discovery of proved reserves, are recognized in the period in which they are incurred. The costs of wells are capitalized and reported as intangible assets until the existence or absence of potentially commercially viable oil or gas reserves is determined. Wells that are not commercially viable are expensed. The costs of exploration wells whose commercial viability has not yet been determined continue to be capitalized as long as the following conditions are fulfilled:

_►Sufficient oil and gas reserves have been discovered that would justify completion as a production well.
_►Sufficient progress is being made in assessing the economic and technical feasibility to justify beginning field development in the near future.
_►The period for which the entity has the right to explore in the specific area has not expired.

Significant estimates and judgments: Recoverability of unproved oil and gas assets

There may be cases when costs related to unproved oil and gas properties remain capitalized over longer periods while various appraisal and seismic activities continue in order to assess the size of the reservoir and its commerciality. Further decisions on the optimum timing of such developments are made from a resource and portfolio point of view. As soon as there is no further intention to develop a discovery, the assets are immediately impaired.

Exploratory wells in progress at year-end that are determined to be unsuccessful subsequent to the statement of financial position date are treated as non-adjusting events, meaning that the costs incurred for such exploratory wells remain capitalized in the financial statements of the reporting period under review and will be expensed in the subsequent period.
License acquisition costs and capitalized exploration and appraisal activities are not amortized as long as they are related to unproved reserves, but tested for impairment when there is an indication of potential impairment. Once the reserves are proved and commercial viability is established, the related assets are reclassified into tangible assets. Development expenditure on the construction, installation, or completion of infrastructure facilities such as platforms and pipelines and drilling development wells is capitalized within tangible assets.
Once production starts, depreciation commences. Capitalized exploration and development costs are generally depreciated based on proved developed reserves by applying the unit-of-production method; only capitalized exploration rights and acquired reserves are amortized on the basis of total proved reserves, unless a different reserves basis is more adequate. Depreciation of economically successful exploration and production assets is reported as depreciation, amortization, impairment charges and write-ups.

Significant estimate: Oil and gas reserves

The oil and gas reserves are estimated by the Group’s petroleum experts in accordance with industry standards and reassessed at least once per year. In addition, external reviews are performed regularly. In 2023, the reserves of all material oil and gas assets (as of December 31, 2022), except for those in Tunisia, the Kurdistan region of Iraq (KRI), Malaysia and Yemen were externally reviewed by DeGolyer and MacNaughton (D&M). The reserves of the oil and gas assets in Tunisia, KRI, and Malaysia were externally reviewed the year before.

The results of the external reviews did not show significant deviations from the internal estimates, apart from a few exceptional cases. In the case of significant deviations, OMV performs further analysis, involving additional independent experts where necessary.

Oil and gas reserve estimates have a significant impact on the assessment of the recoverability of the carrying amounts of the Group’s oil and gas assets. Downward revisions of these estimates could lead to impairment of the asset’s carrying amount. In addition, changes to the estimates of oil and gas reserves impact prospectively the amount of amortization and depreciation.

i) Associated companies and joint arrangements

Associated companies are those entities in which the Group has significant influence, but no control or joint control over the financial and operating policies. Joint arrangements, which are arrangements of which the Group has joint control together with one or more parties, are classified into joint ventures or joint operations. Joint ventures are joint arrangements in which the parties that share control have rights to the net assets of the arrangement. Joint operations are joint arrangements in which the parties that share joint control have rights to the assets, and obligations for the liabilities, relating to the arrangement.

Investments in associated companies and joint ventures are accounted for using the equity method, under which the investment is initially recognized at cost and subsequently adjusted for the Group’s share of the profit or loss less dividends received and the Group’s share of other comprehensive income and other movements in equity.

Significant joint exploration and production activities in the E&P business in the Energy segment are conducted through joint operations that are not structured through a separate vehicle. For these joint operations, OMV recognizes in the consolidated financial statements its share of the assets held and liabilities and expenses incurred jointly with the other partners, as well as the Group’s income from the sale of its share of the output and any liabilities and expenses that the Group has incurred in relation to the joint operation. Acquisitions of interests in a joint operation, in which the activity of the joint operation constitutes a business, are accounted for according to the relevant IFRS 3 principles for business combination accounting (see Note 3.2a).
In addition, there are contractual arrangements similar to joint operations that are not jointly controlled and therefore do not meet the definition of a joint operation according to IFRS 11. This is the case when the main decisions can be taken by more than one combination of affirmative votes of the involved parties or where one other party has control. OMV assesses whether such arrangements are within or outside the scope of IFRS 11 on the basis of the relevant legal arrangements such as concession, license or joint operating agreements which define how and by whom the relevant decisions for these activities are taken. The accounting treatment for these arrangements is basically the same as for joint operations. As acquisitions of interests in such arrangements are not within the scope of IFRS 3, OMV’s accounting policy is to treat such transactions as asset acquisitions.

j) Impairment of assets

Intangible assets, property, plant and equipment (including oil and gas assets) and investments in associated companies and joint ventures are tested for impairment whenever events or changes in circumstances indicate that an asset may be impaired. Impairment tests are performed on the level of the asset or the smallest group of assets that generates cash inflows that are largely independent of those from other assets or groups of assets, called cash-generating units (CGUs).
If assets are determined to be impaired, the carrying amounts are written down to their recoverable amount, which is the higher of fair value less costs of disposal or value in use.
In assessing value in use, the estimated future cash flows are discounted to their present value using a post-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. The cash flows are generally derived from the recent budgets and planning calculations, which are prepared separately for each of the Group’s CGUs to which the individual assets are allocated.
The fair value less costs of disposal is determined on the basis of recent market transactions, if available. If no such transactions can be identified, an appropriate valuation model is used.
If the reasons for impairment no longer apply in a subsequent period, a reversal is recognized in profit or loss. The increased carrying amount related to the reversal of an impairment loss shall not exceed the carrying amount that would have been determined (net of amortization and depreciation) had no impairment loss been recognized in prior years.

Significant estimates and judgments: Recoverability of assets

Evaluating whether assets or CGUs are impaired or whether past impairments should be reversed, requires the use of various estimates and assumptions such as price and margin developments, production volumes and discount rates.

Changes in the economic situation, expectations of climate-related risks or other facts and circumstances might require a revision of these assumptions and could lead to impairments of assets or reversals of impairments within the next financial year. The management performs this analysis for each material CGU. The impairments and reversals recognized in the reporting period are presented in Note 8 – Depreciation, amortization, impairments and write-ups.

The price and margin assumptions used in impairment testing are reviewed annually by management and approved by the Supervisory Board as part of mid-term planning (MTP). They are based on management’s best estimate and consistent with external sources. Whereas prices in the near term are anchored in recent forward prices and market developments, long-term price assumptions are developed using a variety of long-term forecasts by reputable experts and consider long-term views of global supply and demand. OMV’s long-term assumptions take into consideration the impacts of climate change and the energy transition to lower-carbon energy sources (see Note 2).The key valuation assumptions for the recoverable amounts of E&P assets are prices and margins, production volumes, exchange, and discount rates. The production profiles were estimated based on reserves estimates (see Note 3.2h) and past experience and represent management’s best estimate of future production. The cash flow projections for the first five years are based on the mid-term plan and thereafter on “life of field” planning and therefore cover the whole life span of the field.

In the F&F and C&M business segments, the main assumptions for the calculation of the recoverable amounts are the relevant margins and volumes plus discount, inflation, and growth rates. The value in use calculation is based on the cash flows of the five-year mid-term plan and a terminal value.

The price sets used for the value in use calculations are included in Note 2 – Effects of climate change and the energy transition.

k) Assets held for sale

Non-current assets and disposal groups are classified as held for sale if their carrying amounts are to be realized by sale rather than through continued use. This is the case when the sale is highly probable, and the asset or disposal group is available for immediate sale in its present condition. At OMV, these conditions are normally considered not to be fulfilled before binding offers from interested parties are received.
Non-current assets and disposal groups classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell. Property, plant and equipment and intangible assets once classified as held for sale are no longer amortized or depreciated and investments in associates and joint ventures are no longer accounted for at equity.

l) Leases

As a lessee, OMV recognizes lease liabilities and right-of-use assets for lease contracts according to IFRS 16. It applies the recognition exemption for short-term leases and leases in which the underlying asset is of low value and therefore does not recognize right-of-use assets and lease liabilities for such leases. Leases to explore for and use oil and natural gas, which comprise mainly land leases used for such activities, are not in the scope of IFRS 16. The rent for these contracts is recognized as expense on a straight-line basis over the lease term.
Non-lease components are separated from the lease components for the measurement of right-of-use assets and lease liabilities. Lease liabilities are recognized at the present value of fixed lease payments and lease payments that depend on an index or rate over the determined lease term with the applicable discount rate. Right-of-use assets are recognized at the value ofthe lease liability plus prepayments and initial direct costs and presented within property, plant and equipment.

Significant estimates and judgments: Leases

OMV has a significant number of contracts in which it leases filling stations. Many of those contracts include prolongation and termination options. Prolongation options or periods after termination options are included in the lease term if it is reasonably certain that the lease will be prolonged or not terminated. When determining the lease term, the Group takes into account all relevant facts and circumstances that create an economic incentive for shortening or prolonging the lease term using the available options. When assessing the lease term of leases in filling stations for periods covered by prolongation or termination options, the assumption was applied that the lease term will not exceed 20 years.

Optional periods not taken into account in the measurement of the leases, exist mainly for E&P equipment in Romania, office buildings, a plot of land in Belgium and gas storage caverns in Germany. The prolongation option for the office buildings and the gas storage caverns can only be exercised in the distant future.

m) Non-derivative financial assets

At initial recognition, OMV classifies its financial assets as subsequently measured at amortized cost, fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVTPL). The classification depends on both the Group’s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. All regular way trades are recognized and derecognized on the trade date, i.e., the date that the Group commits to purchasing or selling the asset.

Debt instruments are mainly measured at amortized cost and to a small extent at fair value.

OMV recognizes allowances for expected credit losses (ECLs) for all financial assets measured at amortized costs. The ECL calculation is based on the external or internal credit ratings of the counterparty and associated probabilities of default. Available forward-looking information is taken into account, if it has a material impact on the amount of the valuation allowance recognized.
ECLs are recognized in two stages. Where there has not been a significant increase in the credit risk since initial recognition, credit losses are measured at twelve-month ECLs. The twelve-month ECL is the credit loss that could result from default events that are possible within the next twelve months. The Group considers a financial asset to have low credit risk when its credit risk rating is equivalent to the definition of “investment grade”.
Where there has been a significant increase in the credit risk since initial recognition, a loss allowance is required for the lifetime ECL, i.e., the expected credit losses resulting from possible default events over the expected life of a financial asset. For this assessment, OMV considers all reasonable and supportable information that is available without undue cost or effort. Furthermore, OMV assumes that the credit risk on a financial asset has significantly increased if it is more than 30 days past due. If credit quality improves for a lifetime ECL asset, OMV reverts to recognizing allowances on a twelve-month ECL basis. A financial asset is considered to be in default when the financial asset is 90 days past due, unless there is reasonable and supportable information demonstrating that a more lagging default criterion is appropriate. A financial asset is written off when there is no reasonable expectation that the contractual cash flows will be recovered.
For trade receivables and contract assets from contracts with customers, a simplified approach is adopted, where the impairment losses are recognized at an amount equal to lifetime expected credit losses. If there are credit insurances or securities held against the balances outstanding, the ECL calculation is based on the probability of default of the insurer/securer for the insured/secured element of the outstanding balance and for the remaining amount on the probability of default of the counterparty.

Non-derivative financial assets classified as at fair value through profit or loss (FVTPL) include trade receivables from sales contracts with provisional pricing and investment funds because the contractual cash flows do not solely represent payments of principal and interest on the principal amount outstanding. Furthermore, this measurement category includes portfolios of trade receivables held with an intention to sell them. These assets are measured at fair value, with any gains or losses arising on remeasurement recognized in profit or loss.

Equity instruments are either measured at fair value through profit or loss (FVTPL) or at fair value through OCI (FVOCI).OMV decided irrevocably to classify as investments at FVOCI the majority of its non-listed equity investments, which are held for strategic purposes and not trading.

OMV derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

Significant estimates and judgments: Fair value and recoverability of financial assets

The management periodically assesses the receivable related to expenditure recoverable from the Romanian state regarding obligations for decommissioning and restoration costs in OMV Petrom SA. The assessment process takes into consideration aspects such as the history of amounts claimed, documentation process-related requirements, potential litigation, and arbitration proceedings.

OMV has a contractual position toward Gazprom from the redetermination of the reserves of the Yuzhno Russkoye gas field, which was taken over as part of the acquisition of the participation in this field in 2017. According to this agreement, the volume of gas reserves in the Yuzhno Russkoye field is contractually defined and if the reserves are higher or lower than what was assumed in the agreement, either OMV could be obligated to compensate Gazprom (but would have profited in the future from higher sales volumes) or Gazprom could be obligated to compensate OMV. The payment for the reserve redetermination is linked to the actual amount of the gas reserves.

A fair value calculation based on three different scenarios, one of them based on an internal estimate by OMV, led to a positive value. In the current difficult political and legal environment in Russia, however, OMV does not expect this contractual position to be recoverable and measures this receivable with a value of zero (2022: zero).Details on the valuation of the investments measured at fair value through profit or loss in the Yuzhno Russkoye gas field can be found in Note 20 – Financial assets.

n) Derivative financial instruments and hedge accounting

Derivative financial instruments are used to hedge risks resulting from changes in currency exchange rates, commodity prices, and interest rates and for trading purposes. Derivative instruments are recognized at fair value. Unrealized gains and losses are recognized as income or expenses, except where hedge accounting according to IFRS 9 is applied.
Those derivatives qualifying and designated as hedges are either

_►a fair value hedge when hedging exposure to changes in the fair value of a recognized asset or liability,
_►a cash flow hedge when hedging exposure to variability in cash flows that is attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction, or
_►a net investment hedge when hedging the foreign exchange risk in a net investment in a foreign operation.

For cash flow hedges, the effective part of the changes in fair value is recognized in other comprehensive income, while the ineffective part is recognized immediately in the income statement. Where the hedging of cash flows results in the recognition of a non-financial asset or liability, the carrying value of that item will be adjusted for the accumulated gains or losses recognized directly in OCI.
Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognized in OCI and accumulated in the reserve for currency translation differences. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss. Gains and losses accumulated in equity are reclassified to profit or loss when the foreign operation is disposed of or sold.

Contracts to buy or sell non-financial items that can be settled net in cash or another financial instrument are accounted for as financial instruments and measured at fair value. Associated gains or losses are recognized in profit or loss. However, contracts that are entered into and continue to be held for the purpose of the receipt or delivery of non-financial items in accordance with the Group’s expected purchase, sale, or usage requirements are not accounted for as derivative financial instruments, but as executory contracts.
OMV has contracted several long-term power purchase agreements, which were entered into and continue to be held for own use. They are therefore accounted for as executory contracts.

o) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction, or production of qualified assets are capitalized until these assets are substantially ready for their intended use or sale. All other costs of borrowing are expensed in the period in which they are incurred.

p) Government grants

Government grants are recognized as income or deducted from the carrying amount of the related assets, where it is reasonable to expect that the granting conditions will be met and that the grants will be received.

q) Inventories

Inventories are recognized at the lower of cost and net realizable value. Costs incurred are generally determined based on the individual costs for goods that are not interchangeable, the average price method for oil and gas inventories, or the FIFO method for chemical products. Costs of production comprise directly attributable material and labor costs as well as fixed and variable indirect material and production overhead costs. In refineries, a carrying capacity approach is applied according to which the production costs are allocated to product groups on the basis of their relative market values at the end of the period.

r) Cash and cash equivalents

Cash and cash equivalents include cash balances, bank accounts and highly liquid short-term investments with low realization risk, i.e., negligible short-term exchange and interest risks. The maximum maturity at the time of acquisition for such investments is three months.

s) Provisions

A provision is recorded for present obligations toward third parties when it is probable that an obligation will occur, and the settlement amount can be estimated reliably. Provisions for individual obligations are based on the best estimate of the amount necessary to settle the obligation, discounted to the present value in the case of long-term obligations.

Decommissioning and environmental obligations:The Group’s core activities regularly lead to obligations related to dismantling and removal, asset retirement and soil remediation activities. These decommissioning and restoration obligations are principally of material importance in the Energy segment (oil and gas wells, surface facilities) and in connection with filling stations on third-party property. At the time the obligation arises, it is provided for in full by recognizing the present value of future decommissioning and restoration expenses as a liability. An equivalent amount is capitalized as part of the carrying amount of long-lived assets. Any such obligation is calculated on the basis of best estimates. The unwinding of discounting leads to interest expense and accordingly to increased obligations at each statement of financial position date until decommissioning or restoration. For other environmental risks and measures, provisions are recognized if such obligations are probable, and the amount of the obligation can be estimated reliably.

Significant estimates and judgments: Decommissioning provisions

The most significant decommissioning obligations of the Group are related to the plugging of wells, the abandonment of facilities, and the removal and disposal of offshore installations. The majority of these activities are planned to occur many years in the future, while decommissioning technologies, costs, regulations and public expectations are constantly changing. Estimates of future restoration costs are based on reports prepared by Group experts or by partner companies and on past experience. Any significant downward changes in the expected future costs or postponement in the future affect both the provision and the related asset, to the extent that there is sufficient carrying amount. Otherwise, the provision is reversed to income. Significant upward revisions trigger the assessment of the recoverability of the underlying asset.

Provisions for decommissioning and restoration costs require estimates of discount and inflation rates, which have material effects on the amounts of the provision. The assumptions used are disclosed in Note 25 – Provisions.

Pensions and similar obligations: OMV has both defined contribution and defined benefit pension plans. In the case of defined contribution plans, OMV has no obligations beyond payment of the agreed premiums, and therefore no provision is recognized. The reported expense corresponds to the contributions payable for the period.
In contrast, participants in defined benefit plans are entitled to pensions at certain levels and are generally based on years of service and the employee’s average compensation. These defined benefit plans expose theGroup to actuarial risks, such as longevity risk, interest rate risk, inflation risk (as a result of the indexation of the pension), and market risk. Defined benefit pension obligations are accounted for by recognizing provisions for pensions.
Employees of Austrian Group companies whose service began before December 31, 2002, are entitled to severance payments upon termination of employment or upon reaching the normal retirement age. The entitlements depend on years of service and final compensation levels. Entitlement to severance payments for employees whose service began after December 31, 2002, are covered by defined contribution plans. Similar obligations to entitlement to severance payments also exist in other countries, where the Group provides employment.
Employees in Austria and Germany are entitled to jubilee payments after completion of a given number of years of service. These plans are non-contributory and unfunded.

Provisions for pensions, severance payments and jubilee payments are calculated using the projected unit credit method, which divides the costs of the estimated benefit entitlements over the whole period of employment and thus takes future increases in remuneration into account. Actuarial gains and losses for defined benefit pension and severance payment obligations are recognized in full in the period in which they occur in other comprehensive income. Such actuarial gains and losses are not reclassified to profit or loss in subsequent periods. Actuarial gains and losses on obligations for jubilee payments are recognized in profit or loss. Net interest expenses are calculated on the basis of the net defined benefit obligation and disclosed as part of the financial result. The difference between the return on plan assets and interest income on plan assets included in the net interest expenses is recognized in other comprehensive income.

Provisions for voluntary and mandatory separations under restructuring programs are recognized if a detailed plan has been approved by management and communicated to those affected prior to the statement of financial position date and an irrevocable commitment is thereby established. Expenses related to such restructuring programs are included in the line Other operating expenses in the Consolidated Income Statement. Voluntary modifications to employees’ remuneration arrangements are recognized on the basis of the expected number of employees accepting the employing company’s offer. Provisions for obligations related to individual separation agreements that lead to fixed payments over a defined period of time are recognized at the present value of the obligation.

Significant estimates and judgments: Pensions and similar obligations

The projected unit credit method of calculating provisions for pensions, severance and jubilee entitlements requires estimates of discount rates, future increases in salaries and future increases in pensions. For current actuarial assumptions for calculating expected defined benefit entitlements and their sensitivity analysis see Note 25 – Provisions.

The biometrical basis for calculating provisions for pensions, severance and jubilee entitlements of Austrian Group companies is provided by AVÖ 2018 P – Angestellte - Rechnungsgrundlagen für die Pensionsversicherung (Biometric Tables for Pension Insurance), using the variant for salaried employees. In other countries, similar actuarial parameters are used. Employee turnover was computed based on age or years of service, respectively. The expected retirement age used for calculations is based on the relevant country’s legislation.

Provisions for onerous contracts are recognized for contracts in which the unavoidable costs of meeting a contractual obligation exceed the economic benefits expected to be received under the contract. These provisions are measured at the lower amount of the cost of fulfilling the contract and any potential penalties or compensation arising in the event of non-performance.

Significant estimates and judgments: Provisions for onerous contracts

OMV concluded several long-term, non-cancellable contracts in the past that became onerous due to the negative development of market conditions. This led to the recognition of onerous contract provisions in the Group’s financial statements for the unavoidable costs of meeting the contract obligations.

The estimates used for calculating the positive contributions that partly cover the fixed costs were based on external sources and management expectations. For more details see Note 25 – Provisions.

t) Emission allowances

Emission allowances are measured at cost and presented within other short-term assets. Certificates received free of charge from government authorities (EU Emissions Trading Scheme for greenhouse gas emission allowances) are recognized with an acquisition cost of zero.
The emissions caused create an obligation to surrender emission rights. A provision is created for this obligation, which is valued at the acquisition costs of the emissions certificates held, forward prices of open forward purchases and, for any remaining shortfall, at the market value.
OMV voluntarily changed its accounting policy for emissions certificates in the reporting period (see section 3 of this note).

u) Non-derivative financial liabilities

Liabilities are carried at amortized cost, with the exception of derivative financial instruments, which are recognized at fair value. Long-term liabilities are discounted using the effective interest rate method.

Financial guarantee contracts are recognized as a financial liability at the time the guarantee is issued. The liability is initially measured at fair value and subsequently measured at the higher of the amount of the loss allowance determined according to the expected credit losses model and the amount initially recognized less the cumulative income recognized according to IFRS 15.

v) Taxes on income and deferred taxes

In addition to corporate income taxes and trade earnings taxes, typical E&P taxes from oil and gas production like the country/national oil company’s profit share for certain EPSAs (see Note 3.2f) are disclosed as income taxes. Deferred taxes are recognized for temporary differences.

Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the unused tax losses, unused tax credits and deductible temporary differences can be utilized.

Significant estimates and judgments: Recoverability of deferred tax assets

The recognition of deferred tax assets requires an assessment of when those assets are likely to reverse, and an evaluation as to whether or not there will be sufficient taxable profits available to offset the assets when they reverse. This assessment of recoverability requires assumptions regarding future taxable profits and is therefore uncertain. At OMV, this assessment is based on detailed tax plannings that covers the life span of fields in E&P entities and a five-year period in the other entities.

Changes in the assumptions regarding future taxable profits can lead to an increase or decrease in theamount of deferred tax assets recognized, which has an impact on the net income in the period in which the change occurs.

w) Long Term Incentive (LTI) Plans and Equity Deferral

The fair value of share-based compensation expense arising from the Long-Term Incentive (LTI) Plan – OMV’s main equity settled plan – is estimated using a model based on the expected target achievements and the expected share prices. For cash-settled awards, a provision based on the fair value of the amount payable is built up over the vesting period, so that by the end of the vesting period the fair value of the bonus shares to be granted is fully provided for. The provision is remeasured at the end of each reporting period up to the date of settlement, with any changes in fair value recognized in profit or loss. For share-settled awards, the grant date fair value is recognized as an expense (including income tax), with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to subsequent changes in parameters other than market parameters.

In addition, the Equity Deferral part of the annual bonus is settled in shares. Accordingly, the related expense is recognized against equity. For share-based awards, the award is settled net of tax to the participants.

x) Fair value measurement

The fair value is the amount for which an asset or liability could be transferred at the measurement date, based on the assumption that such transfers take place between participants in principal markets and, where applicable, taking highest and best use into account.
Fair values are determined according to the following hierarchy:
Level 1: Quoted prices in active markets for identical assets or liabilities. For the OMV Group, this category will, in most cases, only berelevant for securities, bonds, investment funds and futures contracts.
Level 2: Valuation technique using directly or indirectly observable inputs. In order to determine the fair value for financial instruments within Level 2, usually forward prices of crude oil or natural gas, interest rates and foreign exchange rates are used as inputs to the valuation model. In addition counterparty credit risk and volatility indicators, if applicable, are taken into account.
Level 3: Valuation techniques such as discounted cash flow models using significant unobservable inputs (e.g., long-term price assumptions and reserves estimates).

y) Foreign currency translation

Monetary foreign currency balances are measured at closing rates, and exchange gains and losses accrued at the statement of financial position date are recognized in the income statement.

The financial statements of Group companies with functional currencies that differ from the Group’s presentation currency are translated using the closing rate method. Differences arising from statement of financial position items translated at closing rates are disclosed in other comprehensive income. Income statement items are translated at average rates for the period. The use of average rates for the income statement creates additional differences compared to the application of the closing rates in the statement of financial position, and these are directly adjusted in other comprehensive income.
The main rates applied in translating currencies to EUR were as follows:

Foreign currency translation

	2023		2022
	Statement of financial position date	Average	Statement of financial position date	Average
Bulgarian lev (BGN)	1.956	1.956	1.956	1.956
Czech crown (CZK)	24.724	24.004	24.116	24.566
Hungarian forint (HUF)	382.800	381.850	400.870	391.290
New Zealand dollar (NZD)	1.750	1.762	1.680	1.658
Norwegian krone (NOK)	11.241	11.425	10.514	10.103
Romanian leu (RON)	4.976	4.947	4.950	4.931
Swedish krona (SEK)	11.096	11.479	11.122	10.630
US dollar (USD)	1.105	1.081	1.067	1.053

3) Changes in accounting policies

The Group adopted the following new standards and amendments starting on January 1, 2023:

_►IFRS 17 Insurance Contracts and Amendments to IFRS 17
_►Amendments to IAS 1 and IFRS Practice Statement 2: Disclosure of Accounting Policies
_►Amendments to IAS 8: Definition of Accounting Estimates
_►Amendments to IAS 12: Deferred Tax related to Assets and Liabilities arising from a Single Transaction

The amendments did not have any material impact on OMV’s Group financial statements.

Amendments to IAS 12: International Tax Reform Pillar Two Model Rules

The Group has applied the mandatory temporary exception to recognizing and disclosing information about deferred tax assets and liabilities arising from Pillar Two income taxes since the amendments were published in May 2023.
The mandatory temporary exception applies retrospectively. The retrospective application does not have any impact on the Group’s consolidated financial statements because no new legislation to implement the top-up tax was enacted or substantively enacted as of December 31, 2022, in any jurisdiction in which the Group operates and no related deferred tax was recognized on that date.

Voluntary changes in accounting policies

OMV voluntarily changed its accounting policy for the presentation of purchased emissions certificates and provisions for CO₂ emissions in the balance sheet. Whereas the assets related to purchased emission certificates were netted with the provisions for CO₂ emissions in the past, OMV started presenting these items gross in the balance sheet from December 31, 2023. The reason for the change was to improve the transparency of these balance sheet items. As of December 31, 2023, this change led to an increase in other assets and other provisions of EUR 400 mn.

The following table summarizes the impact on the consolidated statement of financial position of the comparative period. A restated consolidated statement of financial position as of January 1, 2022, was not published in the primary financial statements because the change had only a minor impact on the Group's assets and liabilities.

Consolidated Statement of Financial Position
In EUR mn
	As previously reported	Adjustments	As restated
	2022
Other assets	1,198	434	1,632
Current assets	22,369	434	22,803
Total assets	56,429	434	56,863

Other provisions	505	434	939
Current liabilities	13,567	434	14,001
Total equity and liabilities	56,429	434	56,863
	2021
Other assets	621	376	997
Current assets	18,595	376	18,971
Total assets	53,798	376	54,174

Other provisions	360	376	736
Current liabilities	13,677	376	14,053
Total equity and liabilities	53,798	376	54,174

4) Amendments to IFRSs not yet mandatory

OMV has not applied the following amendments to standards that have been issued but are not yet effective. They are not expected to have any material effects on the Group’s financial statements. EU endorsement is still pending in some cases.

Amendments to IFRSs	IASB effective date

Amendments to IAS 1: Classification of Liabilities as Current and Non-Current	January 1, 2024
Amendments to IFRS 16: Lease Liability in a Sale and Leaseback	January 1, 2024
Amendments to IAS 1: Non-Current Liabilities with Covenants	January 1, 2024
Amendments to IAS 7 and IFRS 7: Supplier Finance Arrangements	January 1, 2024
Amendments to IAS 21: Lack of Exchangeability	January 1, 2025

4 Changes in Group structure

A full list of OMV investments and changes in the consolidated group can be found in Note 40 – Direct and indirect investments of OMV Aktiengesellschaft. Major changes to the consolidated Group are described below.

Chemicals & Materials

On July 5, 2023, the sale of the nitrogen business unit in the Borealis Group, including fertilizer, technical nitrogen, and melamine products, to AGROFERT, a.s. was completed, valuing the business on an enterprise value basis at EUR 810 mn. To reflect the fair value less cost of disposal, based on the Sales Purchase Agreement with AGROFERT, a.s., an impairment of EUR 57 mn was recognized. The impairment is included in the line “Depreciation, amortization, impairments and write-ups” in the consolidated income statement.

Fuels & Feedstock

On June 30, 2023, OMV closed the transaction to sell its shares in OMV Slovenija trgovina z nafto in naftnimi derivati, d.o.o. to the MOL Group. The initial purchase price before customary closing adjustments amounted to EUR 311 mn (for the 92.25% OMV stake). In 2023, the transaction led to a gain recognized in other operating income of EUR 221 mn.

Cash flow impact of changes in Group structure

Cash flow from investing activities contained an inflow of EUR 661 mn related to the divestment of the Borealis nitrogen business, consisting of EUR 849 mn consideration received less EUR 188 mn cash disposed.
The divestment of OMV’s filling station and wholesale business in Slovenia resulted in an inflow of EUR 272 mn (EUR 276 mn consideration received less EUR 4 mn cash disposed).
Further details are presented in the following tables:

Cash impact from sale of subsidiaries and businesses
In EUR mn
		2023
Consideration received		1,169
Less cash disposed of		–204
Net cash inflows from disposal of subsidiaries and businesses		965

Net assets of disposed subsidiaries and businesses
In EUR mn
	2023
Non-current assets	860
Current assets	751
Non-current liabilities	149
Current liabilities	367
Net assets	1,095

Segment Reporting

5 Segment Reporting

Changes in segment reporting

As of January 1, 2023, the Group introduced a new corporate structure, designed to fully enable the delivery of Strategy 2030. Following the reorganization and starting from Q1/23, the Group reports on the following business segments: Chemicals & Materials, Fuels & Feedstock (formerly Refining & Marketing), and Energy (formerly Exploration & Production).
As part of the introduction of the new corporate structure, Gas & Power Eastern Europe, which includes Supply, Marketing, and Trading of gas in Romania and Türkiye and one gas-fired power plant in Romania, was transferred from Fuels & Feedstock to the Energy business segment. Internal reporting and relevant information provided to the chief operating decision-maker in order to assess performance and allocate resources have been updated to reflect the current organizational structure.

Business operations and key markets

For business management purposes, OMV is divided into three operating business segments as well as the segment Corporate and Other (C&O). Each segment represents a strategic unit and operates in different markets. Each Business Segment is managed independently. Strategic business decisions are made by the Executive Board of OMV. With the exception of C&O, the reportable segments of OMV are the same as the operating segments.
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 and plastics recycling.
OMV Group has a production capacity, including joint ventures, of 7.0 mn t of base chemicals, 6.3 mn t of polyolefins and 0.4 mn t of compounding. 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 (Pasadena, United States), which has operated an ethane cracker since 2022 and started up an additional polyethylene plant using the unique Borstar^® technology in 2023.
OMV group is pursuing various initiatives in mechanical and chemical recycling and renewable polyolefins. Borealis is building a propane dehydrogenation plant in Belgium to leverage expected growth in propylene demand in Europe. The new facility will have a production capacity of 0.7 mn t of propylene. Together with ADNOC, Borealis is building Borouge 4 (Ruwais, United Arab Emirates), an ethane-based steam cracker with a capacity of 1.5 mn t (OMV share 0.6 mn t) and polyolefin plants with a capacity of 1.4 mn t (OMV share 0.6 mn t) using the unique Borstar^® technology.
The Fuels & Feedstock (F&F) Business segment refines and markets crude oil and other feedstock. It operates refineries with an annual capacity of 17.8 mn t in Schwechat (Austria), Burghausen (Germany), and Petrobrazi (Romania). In these refineries, crude oil is processed into petroleum products, which are sold to commercial and private customers.
OMV has a strong position in the markets located within the areas of its supply, serving commercial customers, and operating a retail business of 1,666 filling stations.

OMV holds minority stakes in various equity-accounted investments, the most significant being the 15% participation in ADNOC Refining (United Arab Emirates) with an annual capacity of 7.1 mn t (OMV share).

Energy engages in the business of oil and gas exploration, development and production. The activities of this business segment also cover gas supply, marketing, trading, and logistics in Western and Eastern Europe and the Group’s power business activities, with one gas-fired power plant in Romania. In addition, low carbon business activities such as geothermal energy, Carbon Capture and Storage (CCS), and further renewable power solutions are covered by the Energy business segment.

Group management, financing and insurance activities as well as certain service functions are concentrated in the Corporate & Other (C&O) segment.

One of the key measures of operating performance for the Group is the Clean CCS Operating Result. Total assets include intangible assets as well as property, plant, and equipment. Sales to external customers are split up according to geographical areas on the basis of where the risk is transferred to 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 C&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 CCS effect is eliminated from the accounting 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, and the cost of sales calculated using the weighted average method after adjusting for any changes in valuation allowances. In volatile energy markets, measuring 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 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.

Segment reporting
In EUR mn
	2023
	C&M	F&F	Energy	C&O	Total	Consoli-dation	OMV Group

Sales revenues¹	9,650	20,186	17,038	471	47,346	–7,883	39,463
Intersegmental sales	–1,305	–2,433	–3,694	–451	–7,883	7,883	—
Sales to third parties	8,345	17,753	13,344	20	39,463	—	39,463
Other operating income	129	336	208	69	742	—	742
Net income from equity-accounted investments	101	296	–71	—	326	—	326
Depreciation and amortization	541	425	1,434	40	2,439	—	2,439
Impairment losses (incl. exploration & appraisal)	126	7	231	1	365	—	365
Write-ups	—	—	189	0	189	—	189
Operating Result	–120	1,671	3,771	–65	5,257	–31	5,226
Special items for personnel restructuring	5	0	—	—	6	—	6
Special items for unscheduled depreciation and write-ups	135	—	–91	—	44	—	44
Special items for asset disposal	12	–221	—	—	–208	—	–208
Other special items	62	74	677	14	827	—	827
Special items	214	–146	586	14	668	—	668
Clean Operating Result	94	1,525	4,357	–51	5,925	–31	5,894
CCS effect	—	126	—	—	126	4	130
Clean CCS Operating Result	94	1,651	4,357	–51	6,050	–27	6,024
Segment assets²	6,618	4,508	10,488	246	21,859	—	21,859
Additions to PPE/IA³	1,110	986	1,585	54	3,736	—	3,736
Equity-accounted investments⁴	4,747	1,655	266	—	6,668	—	6,668

¹ Including intersegmental sales

² Property, plant and equipment (PPE), intangible assets (IA), not including assets reclassified to assets held for sale

³ Excluding additions to assets reclassified to held for sale and additions to decommissioning assets.

⁴ Excluding assets held for sale

Segment reporting information from 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 as reported in 2022:

Segment reporting
In EUR mn
	2022 restated
	C&M	F&F	Energy	C&O	Total	Consoli-dation	OMV Group

Sales revenues¹	13,450	22,382	35,256	424	71,512	–9,214	62,298
Intersegmental sales	–1,181	–2,525	–5,101	–407	–9,214	9,214	—
Sales to third parties	12,269	19,857	30,155	17	62,298	—	62,298
Other operating income	548	702	336	58	1,644	—	1,644
Net income from equity-accounted investments	332	477	60	—	869	—	869
Depreciation and amortization	533	396	1,504	41	2,474	—	2,474
Impairment losses (incl. exploration & appraisal)	7	14	826	7	853	—	853
Write-ups	266	68	327	—	660	—	660
Operating Result	2,039	2,438	7,890	–86	12,281	–35	12,246
Special items for personnel restructuring	—	2	1	4	8	—	8
Special items for unscheduled depreciation and write-ups	–263	–47	252	—	–58	—	–58
Special items for asset disposal	–315	–409	—	—	–724	—	–724
Other special items	–4	28	–142	31	–87	—	–87
Special items	–582	–426	111	36	–861	—	–861
Clean Operating Result	1,457	2,012	8,001	–50	11,420	–35	11,385
CCS effect	—	–202	—	—	–202	–8	–210
Clean CCS Operating Result	1,457	1,810	8,001	–50	11,218	–43	11,175
Segment assets²	5,964	3,954	11,675	234	21,826	—	21,826
Additions to PPE/IA³	1,285	805	1,533	41	3,664	—	3,664
Equity-accounted investments⁴	5,179	1,765	350	—	7,294	—	7,294

¹Including intersegmental sales

² Property, plant and equipment (PPE), intangible assets (IA), not including assets reclassified to assets held for sale

³ Excluding additions to assets reclassified to held for sale and additions to decommissioning assets.

⁴ Not including assets held for sale

Segment reporting
In EUR mn
	2022 reported
	C&M	R&M	E&P	C&O	Total	Consoli-dation	OMV Group

Sales revenues¹	13,450	28,634	30,857	424	73,365	–11,067	62,298
Intersegmental sales	–1,181	–2,818	–6,661	–407	–11,067	11,067	—
Sales to third parties	12,269	25,816	24,197	17	62,298	—	62,298
Other operating income	548	857	181	58	1,644	—	1,644
Net income from equity-accounted investments	332	477	60	—	869	—	869
Depreciation and amortization	533	422	1,478	41	2,474	—	2,474
Impairment losses (incl. exploration & appraisal)	7	15	825	7	853	—	853
Write-ups	266	68	327	—	660	—	660
Operating Result	2,039	3,392	6,936	–86	12,281	–35	12,246
Special items for personnel restructuring	—	2	1	4	8	—	8
Special items for unscheduled depreciation and write-ups	–263	–47	252	—	–58	—	–58
Special items for asset disposal	–315	–409	—	—	–724	—	–724
Other special items	–4	–321	207	31	–87	—	–87
Special items	–582	–774	460	36	–861	—	–861
Clean Operating Result	1,457	2,618	7,396	–50	11,420	–35	11,385
CCS effect	—	–202	—	—	–202	–8	–210
Clean CCS Operating Result	1,457	2,415	7,396	–50	11,218	–43	11,175
Segment assets²	5,964	4,223	11,407	234	21,826	—	21,826
Additions to PPE/IA³	1,285	826	1,512	41	3,664	—	3,664
Equity-accounted investments⁴	5,179	1,765	350	—	7,294	—	7,294

¹Including intersegmental sales

² Property, plant and equipment (PPE), intangible assets (IA), not including assets reclassified to assets held for sale.

³ Excluding additions to assets reclassified to held for sale and additions to decommissioning assets

⁴ Not including assets held for sale

In 2023, special items for unscheduled depreciation and write-ups were mainly attributable to the net effect of impairments and write-ups of E&P assets, an impairment of the Borealis nitrogen business, as well as the write-up of the natural gas storage asset in Germany. For further details on impairments and write-ups see Note 8 – Depreciation, amortization, impairments and write-ups.
Special items for asset disposals were mainly related to the sale of OMV’s filling station and wholesale business in Slovenia. For further details see Note 7 – Other operating income.
Other special items mainly consisted of temporary valuation effects and a partial impairment of exploration & appraisal assets included in OMV’s initial purchase price allocation of its share in Pearl Petroleum Company Limited (investment accounted for at-equity).

Information on geographical areas
In EUR mn
	2023			2022
	Sales to third parties	Segment assets¹	Equity- accounted investments²	Sales to third parties	Segment assets¹	Equity- accounted investments²
Austria	9,097	4,918	13	14,911	4,365	16
Belgium	814	2,384	29	987	1,950	45
Germany	6,302	1,301	30	14,102	1,200	31
New Zealand	451	676	—	598	864	—
Norway	1,045	1,056	—	1,584	1,219	—
Romania	6,728	6,013	—	10,149	5,437	—
United Arab Emirates	1,459	1,682	5,638	1,644	1,677	6,073
Rest of CEE³	5,677	568	—	7,548	554	—
Rest of Europe	5,545	1,859	24	7,454	1,848	22
Rest of the world⁴	2,344	1,072	934	3,322	2,162	1,107
Allocated	39,463	21,529	6,668	62,298	21,274	7,294
Unallocated assets	—	330	—	—	552	—
Total	39,463	21,859	6,668	62,298	21,826	7,294

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 Türkiye

⁴ Rest of the world: principally Algeria, Argentina, Brazil, Canada, Chile, China, Colombia, Cuba, Egypt, India, Libya, Malaysia, Mexico, Morocco, Nigeria, Peru,

Qatar, Russia (only until February 2022), Saudi Arabia, South Africa, South Korea, Tunisia, United States of America, and Yemen

Unallocated assets contained goodwill in the amount of EUR 330 mn (2022: EUR 342 mn) related to the cash-generating unit “Middle East and Africa” as this CGU operates in more than one geographical area. In 2022, unallocated assets also included goodwill in the amount of EUR 210 mn related to cash generating unit SapuraOMV. In 2023 the disposal group SapuraOMV was reclassified to “held for sale”. For further details, please refer to Note 22 – Assets and liabilities held for sale.

Notes to the Income Statement

6 Sales revenues

Sales revenues
In EUR mn
	2023	2022
Revenues from contracts with customers	37,451	53,827
Revenues from other sources¹	2,012	8,472
Sales revenues	39,463	62,298

¹The decrease in revenues from other sources is mainly driven by commodity trading transactions.

Revenues from contracts with customers
In EUR mn
	Chemicals & Materials	Fuels & Feedstock	Energy	Corporate & Other	OMV Group

	2023
Crude oil, NGL, and condensates	—	508	1,050	—	1,558
Natural gas and LNG	—	4	10,947	—	10,950
Fuel, heating oil, and other refining products	—	14,928	—	—	14,928
Chemical products	8,193	40	—	—	8,233
Other goods and services¹	135	872	756	18	1,782
Revenues from contracts with customers	8,329	16,351	12,753	18	37,451


	2022
Crude oil, NGL, and condensates	—	860	1,519	—	2,379
Natural gas and LNG	—	4	19,905	—	19,909
Fuel, heating oil, and other refining products	—	16,390	—	—	16,390
Chemical products	12,160	54	—	—	12,214
Other goods and services¹	126	977	1,817	16	2,935
Revenues from contracts with customers	12,286	18,285	23,240	16	53,827

¹ Mainly retail non-oil business in Fuels & Feedstock and power sales in Energy

7 Other operating income and net income from equity-accounted investments

Other operating income and net income from equity-accounted investments
In EUR mn
	2023	2022
Foreign exchange gains from operating activities	200	298
Gains from the disposal of businesses, subsidiaries, tangible and intangible assets	237	766
Residual other operating income	305	579
Other operating income	742	1,644

Income from equity-accounted investments	580	937
Expenses from equity-accounted investments	–254	–68
Net income from equity-accounted investments	326	869

Foreign exchange gains from operating activities were mainly impacted by the development of the USD foreign exchange rate in 2023 and 2022.

Gains from the disposal of businesses, subsidiaries, tangible and intangible assets related mostly to gains from divestment of OMV’s filling station and wholesale business in Slovenia. For further details see Note 4 – Changes in Group structure.

2022 gains were mostly related to gains from the sale of the filling station business in Germany (EUR 409 mn) and gains from the Borouge PLC IPO (EUR 341 mn).

Residual other operating income decreased in 2023 in relation to compensation from the Romanian state for the sale of natural gas and electricity at capped prices as well as the elimination of the subsidies supporting voluntary price reductions for the sale of diesel and gasoline. These measures were introduced in 2022 via several Government Emergency Ordinances in order to mitigate the consequences of the energy crisis.

In addition, residual other operating income included storage income related to Erdöl-Lagergesellschaft m.b.H. of EUR 42 mn (2022: EUR 34 mn). 2022 contained insurance income of around EUR 200 mn related to the incident at OMV Schwechat refinery in June 2022.

Income from equity-accounted investments was mainly impacted by the Abu Dhabi Oil Refining Company and the Borouge investments. Expenses from equity-accounted investments were predominantly stemming from Bayport Polymers LLC, as well as from an impairment within Pearl Petroleum Company Limited. For further details see Note 18 – Equity-accounted investments.

8 Depreciation, amortization, impairments and write-ups

Impairment losses are part of the income statement line “Depreciation, amortization, impairments and write-ups”, except for impairment losses related to exploration and appraisal assets, which are shown in “Exploration expenses”. The following tables provide a reconciliation to the amounts reported in the income statement.

Depreciation, amortization, impairments (excluding exploration & appraisal) and write-ups
In EUR mn
	2023	2022
Depreciation and amortization	2,439	2,474
Write-ups	–189	–660
Impairment losses (excl. exploration & appraisal)	213	670
Depreciation, amortization, impairment losses (excluding exploration & appraisal) and write-ups	2,463	2,484

Impairment losses (including exploration & appraisal)
In EUR mn
	2023	2022
Impairment losses (excl. exploration & appraisal)	213	670
Impairment losses (exploration & appraisal)	152	183
Impairment losses (including exploration & appraisal)	365	853

Depreciation, amortization, impairments and write-ups – split by function
In EUR mn
	2023	2022
Depreciation and amortization	2,439	2,474
attributable to exploration expenses	—	—
attributable to production and operating expenses	2,152	2,200
attributable to selling, distribution and administrative expenses	287	274

Write-ups	–189	–660
attributable to exploration expenses	–1	—
attributable to production and operating expenses	–116	–660
attributable to selling, distribution and administrative expenses	–72	–0

Impairment losses (incl. exploration & appraisal)	365	853
attributable to exploration expenses	158	183
attributable to production and operating expenses	203	660
attributable to selling, distribution and administrative expenses	4	10

Impairments and write-ups in Chemicals & Materials

On July 5, 2023, the sale of the nitrogen business unit in the Borealis Group, including fertilizer, technical nitrogen, and melamine products, to AGROFERT, a.s. was completed. To reflect the fair value less cost of disposal, based on the Sales Purchase Agreement with AGROFERT, a.s., an impairment of EUR 57 mn was recognized.

Additionally, the acquisition of the additional 48.55% stake in Renasci N.V. as of November 30, 2023, triggered a reassessment, which led to an impairment in the amount of EUR 54 mn, of which EUR 23 mn was allocated to the equity-accounted investment BlueAlp Holding B.V.

In 2022, a write-up of EUR 266 mn was recognized related to the sale of the nitrogen business unit of the Borealis group. The valuation was based on a binding offer from AGROFERT, a.s. dated June 2, 2022, to reflect the fair value less cost to sell.

Impairments and write-ups in Fuels & Feedstock

In 2022, there was a net write-up of EUR 67 mn of the ADNOC Refining and Trading CGU, mainly related to the impairment testing triggered by the positive near-term margin outlook for refining margins in the Middle East.

Impairments and write-ups in Energy

A write-up of EUR 114 mn was recognized in some CGUs in Libya following stabilized production in recent years. The recoverable amount, which was determined on the basis of the value in use, was EUR 821 mn. The after-tax discount rate used was 13.25%.
An impairment test was performed for the Etzel gas storage facility in Germany in 2023, resulting in a write-up of EUR 72 mn due to the improved market environment for gas storage facilities in Europe. The recoverable amount, which was determined on the basis of the value in use, was EUR 154 mn. The discount rate used was 5.25%.

Impairment losses in 2023 included impairments of EUR 152 mn mainly related to unsuccessful exploration wells and expired exploration licenses in Malaysia and Norway.

Other impairments in 2023 were primarily related to unsuccessful workovers and obsolete or replaced assets in Romania (EUR 55 mn).
In Q4/22, OMV updated its commodity price assumptions. Whereas European gas prices increased for the near and long-term, the expected production volume of some oil and gas assets in Romania decreased due to higher expected natural decline rates and operating costs increased. These effects led to pre-tax impairments of EUR 117 mn (net of write-ups) of some development and production oil and gas assets, related to assets in Romania, New Zealand, and Austria.

In 2022, impairment losses attributable to exploration and appraisal (EUR 183 mn) were mainly related to unsuccessful exploration wells and exploration licenses in Norway, New Zealand, Romania, and Australia.

Additionally, impairments in 2022 included mainly unsuccessful workovers, obsolete or replaced assets in Romania (EUR 84 mn), and a production license in Libya (EUR 70 mn).

The planned sale of OMV’s relevant operating entities in Yemen in Q2/22 led to the reclassification to “held for sale”, which triggered a pre-tax impairment of EUR 48 mn.

9 Exploration expenses

The following financial information represents the amounts included in the Group totals relating to the exploration and appraisal of oil and natural gas resources. All such activities are recorded within the Energy segment.

Exploration and appraisal of mineral resources
In EUR mn
	2023	2022
Impairment losses (exploration & appraisal)	152	183
Other exploration expenses	70	67
Exploration expenses	222	250

Net cash used in operating activities	75	103
Net cash used in investing activities	171	149

10 Other operating expenses

Other operating expenses
In EUR mn
	2023	2022
Foreign exchange losses from operating activities	182	268
Losses from the disposals of businesses, subsidiaries, tangible and intangible assets	31	685
Losses from fair value changes of financial assets	—	432
Net impairment losses on financial assets measured at amortized cost	38	43
Personnel reduction schemes	9	3
Research and development expenses	76	65
Residual other operating expenses	125	142
Other operating expenses	462	1,639

Foreign exchange losses from operating activities were mainly impacted by the development of the USD foreign exchange rate in 2023 and 2022.

Losses from the disposals of businesses, subsidiaries, tangible and intangible assets contained in 2022 mostly losses from the deconsolidation of Russian entities in the amount of EUR 658 mn.

Losses from fair value changes of financial assets in 2022 contained losses related to asset from reserves redetermination rights with respect to the acquisition of interests in the Yuzhno Russkoye field.

Net impairment losses on financial assets measured at amortized cost were mainly related to impairments of receivables in Tunisia amounting to EUR 26 mn (2022: EUR 20 mn).

Residual other operating expenses contained expenses relating to various digitalization initiatives amounting to EUR 22 mn (2022: EUR 40 mn) as well as expenses related to minimum stockholding obligation outsourced to Erdöl-Lagergesellschaft m.b.H. in the amount of EUR 46 mn (2022: EUR 45 mn).

11 Personnel expenses

Personnel expenses
In EUR mn
	2023	2022
Wages and salaries	1,365	1,314
Costs of defined benefit plans	31	30
Costs of defined contribution plans	62	77
Personnel reduction schemes	9	3
Other employee benefits	250	275
Taxes and social contributions	305	309
Personnel expenses	2,023	2,009

Share-based payments were part of other employee benefits. For further information please refer to Note 34 – Share-based payments.

Additional details on defined benefit plans are included in Note 25 – Provisions.

12 Net financial result

Interest income
In EUR mn
	2023	2022
Cash and cash equivalents	355	193
Discounted receivables	14	5
Other financial and non-financial assets	35	20
Loans	69	51
Interest income	473	269

Interest income on cash and cash equivalents in 2023 was primarily related to interest income on RON, USD and EUR bank deposits.

Interest income from loans included EUR 59 mn (2022: EUR 32 mn) from the loan agreement with Bayport Polymers LLC. In 2022, this position additionally contained EUR 17 mn related to the Nord Stream 2 financing agreement. For further details see Note 20 – Financial assets.

Interest expenses
In EUR mn
	2023	2022
Bonds	104	120
Lease liabilities	36	30
Other financial and non-financial liabilities	49	47
Provisions for decommissioning and restoration obligations	204	196
Provisions for jubilee payments, personnel reduction schemes, and other employee benefits	5	3
Provisions for pensions and severance payments	33	14
Provisions for onerous contracts	5	14
Other	3	11
Interest expenses, gross	437	435
Capitalized borrowing costs	–23	–18
Interest expenses	415	417

For further details on bonds see Note 26 – Liabilities.

For OMV Petrom SA, the unwinding expenses for decommissioning provisions are included net of the unwinding income from receivables recoverable from the Romanian state. For further details see Note 20 – Financial assets.

Interest expenses on provisions for decommissioning and restoration obligations in 2023 were impacted by unwinding effects in the amount of EUR 181 mn (2022: EUR 131 mn), the increase being due to overall higher provision levels during 2023. The remaining part of the interest expenses on provisions for decommissioning and restoration obligations related entirely to the negative reassessment effects of receivables recoverable from the Romanian state amounting to EUR 23 mn (2022: EUR 65 mn).

The interest expenses on pension provisions were netted against interest income on pension plan assets, which amounted to EUR 19 mn (2022: EUR 6 mn).

Furthermore, the interest expenses included the unwinding effects from the provisions for onerous contracts for the associated transportation commitments of OMV Gas Marketing & Trading GmbH. For further details see Note 25 – Provisions.

Capitalized borrowings costs applied to the carrying value of qualifying assets were mainly related to the propane dehydrogenation plant under construction at the Borealis production site in Kallo, Belgium, and construction of the ReOil^® and co-processing plants in Austria.

Other financial income and expenses
In EUR mn
	2023	2022
Carrying amount of sold trade and other receivables	–11,825	–10,857
Proceeds on sold trade and other receivables	11,748	10,811
Financing charges for factoring and securitization	–77	–46
Net foreign exchange gains (+)/losses (–)	–29	95
Other	–32	–1,393
Other financial income and expenses	–138	–1,345

In 2023, the net foreign exchange result was predominantly impacted by USD.

The position Other in 2023 was mainly related to negative fair value adjustments of investments in Russia in the amount of EUR 23 mn (2022: EUR 370 mn). In 2022, this position also included the impairment of the Nord Stream 2 loan (EUR 1,004 mn). For further details see Note 20 – Financial assets.

13 Solidarity contribution on refined crude oil

As a direct consequence of the energy crisis in Europe, regulatory measures like price caps, subsidy schemes, and the EU solidarity contribution have been implemented in some of the countries the OMV Group is active in. The Council Regulation (EU) 2022/1854 introduced a solidarity contribution, which was transposed into the local legislation of the member states and applies to 2022 and/or 2023.
On May 12, 2023, law no. 119/2023 for the approval of the Government Emergency Ordinance 186/2022 to implement the EU regulation regarding the solidarity contribution was published in the Official Gazette in Romania. For companies that produce and refine crude oil, the law introduced the obligation to pay a contribution of RON 350 for each tonne of crude oil processed during 2022 and 2023.
In 2023, a solidarity contribution in the total amount of EUR 552 mn was recognized for the quantities of crude oil processed during 2022 (EUR 300 mn) and 2023 (EUR 252 mn).
The aim of the EU regulation was to introduce a solidarity contribution that tackles surplus profits. However, the solidarity contribution in Romania was not based on profits but rather on quantities of processed crude oil and therefore does not fall within the scope of IAS 12 – Income taxes. Due to its specific nature, the solidarity contribution in Romania was not presented in the Consolidated Income Statement as part of the operating result, but as a separate line above the “Taxes on income and profit” line.

14 Taxes on income and profit

Taxes on income and profit
In EUR mn
	2023	2022
Profit before tax	4,604	10,765
Current taxes	2,512	5,505
thereof related to previous years	–57	37
Deferred taxes	175	85
Taxes on income and profit	2,687	5,590

Taxes on income and profit accounted for in other comprehensive income
In EUR mn
	2023	2022
Deferred taxes	–97	30
Current taxes	—	—
Taxes on income and profit accounted for in other comprehensive income	–97	30

Changes in deferred taxes¹
In EUR mn
	2023	2022
Deferred taxes January 1	–78	–87
Deferred taxes December 31	–114	–78
Changes in deferred taxes	–36	9
Deferred taxes accounted for in OCI or directly in equity	87	–38
Changes in the consolidated group, currency translation differences and other changes²	52	132
Deferred tax expenses per income statement	–175	–85
The deferred taxes per income statement comprise the following elements:
Change in tax rate	–4	–96
Release of and allocation to valuation allowance for deferred taxes	–327	–327
Adjustments within loss carryforwards (not recognized in prior years, expired loss carryforwards and other adjustments)	10	9
Reversal of temporary differences, including additions to and use of loss carryforwards	145	329

¹ Deferred tax balances also include deferred tax balances reclassified to held for sale.

²In 2022, these effects were mainly related to the deconsolidation of JSC GAZPROM YRGM Development (EUR 116 mn).

OMV Aktiengesellschaft forms a tax group in accordance with section 9 of the Austrian Corporate Income Tax Act 1988 (KStG), which aggregates the taxable profits and losses of all the Group’s main subsidiaries in Austria and possibly arising losses of one foreign subsidiary (OMV AUSTRALIA PTY LTD).
Dividend income from domestic subsidiaries is in general exempt from taxation in Austria. Dividends from EU and EEA participations as well as from subsidiaries whose residence state has a comprehensive mutual administrative assistance agreement with Austria are exempt from taxation in Austria if certain conditions are met. Dividends from other foreign investments that are comparable to Austrian corporations, for which the Group holds a 10% investment share or more for a minimum period of one year, are also excluded from taxation at the level of the Austrian parent company.

The change in the valuation allowance of deferred taxes for the Austrian tax group was reported in the income statement, except to the extent that the deferred tax assets arose from transactions or events that were recognized outside profit or loss, i.e., in other comprehensive income or directly in equity.

Based on the EU Council Regulation 2022/1854, a solidarity contribution was introduced and was transposed into the local law of the member states. It respresents a contribution for surplus profits of companies operating in the crude petroleum, natural gas, coal, and refinery sectors and was applicable for 2022 and 2023. Certain Group companies in Austria and Germany are subject to the solidarity contribution, which is calculated based on taxable profit. Details with respect to the solidarity contribution in Romania are provided in Note 13 – Solidarity contribution on refined crude oil.
In Austria, the solidarity contribution (Energy Crisis Contribution) is calculated based on the taxable profits of the relevant companies, as determined under national tax rules, that are more than 10% higher (2022: 20% higher) than the average taxable profits generated in the period 2018 to 2021.
OMV Group companies in Germany were not subject to a solidarity contribution in 2023 and 2022, as the taxable profit of the relevant companies did not exceed the average taxable profit generated in the period 2018 to 2021.
In January 2024, despite the EU rules expiring at the end of 2023, the Austrian federal government announced plans to extend the solidarity contribution retroactively into 2024. Moreover, there are intentions to further reduce the threshold for excess profits to 5% in Austria.
The effective tax rate is the ratio of income tax to profit before tax. The tables below reconcile the effective tax rate and the standard Austrian corporate income tax rate of 24% (2022: 25%) showing the major influencing factors.

Tax rate reconciliation

	2023		2022
	In EUR mn	In %	In EUR mn	In %
Theoretical taxes on income based on Austrian income tax rate	1,105	24.0	2,691	25.0
Tax effect of:
Differing foreign tax rates	1,359	29.5	2,755	25.6
Non-deductible expenses	258	5.6	612	5.7
Non-taxable income and tax incentives	–128	–2.8	–160	–1.5
Income and expenses related to equity-accounted investments	–128	–2.8	–414	–3.8
Change in tax rate	4	0.1	96	0.9
Permanent effects within tax loss carryforwards	5	0.1	–9	–0.1
Tax write-downs and write-ups on investments in subsidiaries	–1	–0.0	–430	–4.0
Change in valuation allowance for deferred taxes	327	7.1	327	3.0
Taxes related to previous years	–5	–0.1	60	0.6
Other	–108	–2.4	61	0.6
Total taxes on income and profit	2,687	58.4	5,590	51.9

Differing foreign tax rates effects in 2023 mostly related to subsidiaries operating in tax jurisdictions with high corporate income tax rates (Norway, United Arab Emirates, and Libya). Decrease in the effects related to differing foreign tax rates as compared to 2022 was mostly due to the lower profit before tax of those subsidiaries.
Non-deductible expenses related mostly to the solidarity contribution on refined crude oil in Romania and permanent effects from depreciation, depletion, and amortization. 2022 was predominantly impacted by the losses from fair value changes of financial assets and effects related to the deconsolidation of JSC GAZPROM YRGM Development.
Non-taxable income and tax incentives in 2023 mainly related to the write-up of tangible assets, while in 2022 those effects related mostly to non-taxable gains on the sale of the filling station business in Germany.
Income and expenses related to at-equity accounted investments effects in 2023 were mainly related to the share of profit from equity-accounted investments. 2022 was primarily impacted by the share of profit from equity-accounted investments and the gains from the sucessful listing of Borouge PLC on the ADX (Abu Dhabi Securities Exchange).

Effects related to the change in tax rate in 2022 mainly related to the decrease in the deferred tax rate for Austrian entities. Based on the Eco Social Tax Reform Act, which was adopted by the National Council of Austria in January 2022, the corporate income tax rate was reduced from 25% to 24% in 2023 and further to 23% from 2024 onward.

Tax write-downs and write-ups on investments in subsidiaries in 2022 were mainly related to the tax impairment of the investment in JSC GAZPROM YRGM Development.

The change in valuation allowance for deferred taxes was predominately impacted by the increase in valuation allowances on deferred tax assets in Austria. For further details see Note 27 – Deferred Taxes.

Taxes related to previous years in 2022 were mainly related to the sale of the filling stations business in Germany and effects related to differences between the functional currency and tax currency of certain subsidiaries.

Other effects in 2023 related mostly to the reversal of outside basis differences with respect to Nitro business and tax credits. Those effects were partly offset by the solidarity contribution in Austria for 2023, amounting to EUR 18 mn. 2022 was mainly impacted by the solidarity contribution in Austria (EUR 90 mn).

Global Minimum Tax

Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions in which the Group operates. Under this legislation, Group companies will be subject to Pillar Two income taxes on profits that are taxed at an effective tax rate of less than 15%. The legislation will be effective for the Group’s financial year beginning on January 1, 2024. The Group is in scope of the enacted or substantively enacted legislation and has performed an assessment of the Group’s potential exposure to Pillar Two income taxes.

The assessment of the potential exposure to Pillar Two income taxes is based on the most recent tax filings, country-by-country reporting, and financial statements of the constituent entities as well as on mid-term planning data. Based on the assessment, the Pillar Two effective tax rates in most of the jurisdictions in which the Group operates are above 15% and no material exposure to Pillar Two income taxes is expected.

As disclosed in Note 3 – Accounting policies, judgments and estimates, section 3 – Changes in accounting policies, the Group has applied the mandatory temporary exception with respect to recognition and disclosure of information about deferred taxes related to Pillar Two income taxes.

15 Earnings Per Share

Earnings Per Share (EPS)

	2023		2022
	Basic	Diluted	Basic	Diluted
Earnings attributable to stockholders of the parent in EUR mn	1,480	1,480	3,634	3,634
Weighted average number of shares outstanding	326,940,897	327,169,060	326,897,763	327,136,798
Earnings Per Share in EUR	4.53	4.52	11.12	11.11

The calculation of diluted Earnings per Share took into account the weighted average number of shares in issue following the conversion of all potentially diluting ordinary shares. This included 228,163 (2022: 239,035) contingently issuable bonus shares related to Long- Term Incentive Plans and the Equity Deferral.

Notes to the Statement of Financial Position

16 Intangible assets

Intangible assets
In EUR mn
	Concessions, software, licenses, rights	Development costs	Oil and gas assets with unproved reserves	Goodwill	Total

	2023
Development of costs
January 1	1,330	572	1,811	585	4,298
Currency translation differences	–3	–0	–28	–17	–48
Changes in the consolidated group	28	—	—	21	49
Additions	39	112	201	—	352
Transfers	20	14	–583	—	–549
Assets held for sale	–0	—	–243	–205	–448
Disposals	–28	–3	–195	—	–225
December 31	1,385	695	963	384	3,428
Development of amortization
January 1	769	86	934	—	1,788
Currency translation differences	–2	—	–21	—	–23
Amortization	93	34	0	—	127
Impairments	11	3	158	—	171
Transfers	–0	—	–14	—	–14
Assets held for sale	–0	—	–173	—	–173
Disposals	–29	–3	–195	—	–227
Write-ups	—	—	–1	—	–1
December 31	842	119	688	—	1,649
Carrying amount January 1	562	486	878	585	2,510
Carrying amount December 31	543	576	275	384	1,779


	2022
Development of costs
January 1	2,199	464	1,876	562	5,101
Currency translation differences	–236	—	36	28	–172
Changes in the consolidated group	–662	—	–36	—	–699
Additions	31	110	172	—	313
Transfers	5	—	–141	—	–136
Assets held for sale	–0	—	27	—	27
Disposals	–6	–2	–122	–6	–136
December 31	1,330	572	1,811	585	4,298
Development of amortization
January 1	979	52	909	—	1,940
Currency translation differences	–85	–0	25	—	–60
Changes in the consolidated group	–234	—	–36	—	–270
Amortization	108	31	0	—	140
Impairments	6	3	179	—	189
Transfers	–0	—	–24	—	–24
Assets held for sale	–1	—	1	—	–0
Disposals	–5	–1	–121	—	–127
December 31	769	86	934	—	1,788
Carrying amount January 1	1,220	411	967	562	3,161
Carrying amount December 31	562	486	878	585	2,510

On October 31, 2023, the Borealis Group acquired 100% of the shares in Rialti S.p.A. This led to EUR 29 mn of changes in the consolidated group, including EUR 21 mn goodwill. The fair values of the acquired assets and liabilities are preliminary and may be adjusted later. An additional EUR 29 mn was included in the consolidation group, resulting from the change of consolidation method of Renasci N.V. after Borealis increased its stake from 27.42% to 50.01% as of January 11, 2023. In 2022, the changes in the consolidated group included EUR 428 mn from the deconsolidation of JSC GAZPROM YRGM Development.

Additions to intangible assets in 2023 included EUR 37 mn (2022: EUR 37 mn) of additions for internally generated assets, mainly related to capitalized development costs.

In 2023, transfers were mainly related to OMV Petrom following the final investment decision for the Neptun Deep project. Consequently, the related oil and gas assets in the amount of EUR 483 mn were reclassified from intangible assets to property, plant, and equipment.

The intangible assets of the SapuraOMV disposal group with a total carrying amount of EUR 275 mn were reclassified to assets held for sale. For details see Note 22 – Assets and liabilities held for sale. In 2022, intangible assets amounting to EUR 27 mn were transferred back from assets held for sale, mainly related to OMV’s share in the Maari field in New Zealand.

Further details on impairmentsand write-ups can be found in Note 8 – Depreciation, amortization, impairments and write-ups.

Goodwill arising from business combinations has been allocated to the following CGUs and groups of CGUs, for impairment testing:

Goodwill allocation
In EUR mn
	2023	2022
Middle East and Africa	330	342
SapuraOMV	—	210
Goodwill allocated to Energy	330	552
Retail Slovakia	7	7
Refining Austria	26	26
Goodwill allocated to Fuels & Feedstock	33	33
Polypropylene¹	21	—
Goodwill allocated to Chemicals & Materials	21	—
Goodwill	384	585

¹ Related to the acquisition of Rialti S.p.A.

In 2023, the goodwill related to the SapuraOMV disposal group was reclassified to assets held for sale. For details refer to Note 22 – Assets and liabilities held for sale. The remaining goodwill allocated to Energy decreased due to unfavorable currency translation differences.

Goodwill impairment tests based on a value in use calculation were performed and did not lead to any impairments. For the impairment test of the goodwill allocated to the Middle East and Africa, an after-tax discount rate of 10.00% (2022: 10.47%) was used.
An after-tax discount rate of 16.42% (2022: 12.67%) related to the goodwill allocated to the Middle East and Africa would lead to zero headroom.

For details on contractual obligations for the acquisition of intangible assets, refer to Note 17 – Property, plant, and equipment.

17 Property, plant, and equipment

Property, plant, and equipment including right-of-use assets
In EUR mn
	Land and buildings	Oil and gas assets with proved reserves	Plant and machinery	Other fixtures, fittings, and equipment	Assets under construction	Total

	2023
Development of costs
January 1	3,512	26,549	12,002	2,043	2,061	46,168
Currency translation differences	–9	–700	–21	–4	–5	–738
Changes in the consolidated group	11	—	53	2	12	78
Additions	143	1,265	491	95	1,389	3,383
New obligations and change in estimates for decommissioning	4	309	12	0	—	326
Transfers	–33	592	848	121	–969	559
Assets held for sale	–6	–1,431	0	–0	–8	–1,444
Disposals	–18	–160	–195	–79	–2	–454
December 31	3,606	26,425	13,191	2,178	2,479	47,878
Development of depreciation
January 1	1,805	17,205	6,378	1,457	6	26,851
Currency translation differences	–5	–467	–6	–3	0	–480
Changes in the consolidated group	–1	—	–4	–0	—	–5
Depreciation	159	1,330	674	150	—	2,314
Impairments	0	59	29	1	12	101
Transfers	–37	16	34	2	—	14
Assets held for sale	–6	–370	—	–0	–3	–380
Disposals	–13	–158	–191	–67	–1	–429
Write-ups	–2	–116	–70	–0	—	–188
December 31	1,900	17,498	6,844	1,540	15	27,798
Carrying amount January 1	1,706	9,344	5,624	586	2,055	19,317
Carrying amount December 31	1,705	8,927	6,347	637	2,464	20,081

Property, plant, and equipment including right-of-use assets
In EUR mn
	Land and buildings	Oil and gas assets with proved reserves	Plant and machinery	Other fixtures, fittings and equipment	Assets under construction	Total

	2022
Development of costs
January 1	3,398	25,042	11,254	1,989	1,511	43,195
Currency translation differences	–17	174	–169	–3	–4	–20
Additions	111	1,244	678	51	1,268	3,352
New obligations and change in estimates for decommissioning	4	–74	–21	0	—	–90
Transfers	69	127	539	88	–690	133
Assets held for sale	–18	236	–59	–12	–10	136
Disposals	–35	–200	–220	–68	–13	–537
December 31	3,512	26,549	12,002	2,043	2,061	46,168
Development of depreciation
January 1	1,698	15,451	6,085	1,383	8	24,626
Currency translation differences	–8	18	–106	–3	0	–98
Depreciation	138	1,390	671	144	—	2,342
Impairments	6	595	8	2	8	619
Transfers	1	22	–8	6	2	24
Assets held for sale	–6	241	–55	–9	–1	170
Disposals	–24	–195	–211	–66	–9	–505
Write-ups	–0	–317	–7	—	–2	–327
December 31	1,805	17,205	6,378	1,457	6	26,851
Carrying amount January 1	1,700	9,591	5,169	606	1,503	18,569
Carrying amount December 31	1,706	9,344	5,624	586	2,055	19,317

The EUR 84 mn of changes in the consolidated group resulted mainly from the change in the consolidation method of Renasci N.V. after Borealis increased its stake from 27.42% to 50.01% as of January 11, 2023, and the acquisition by Borealis of 100% of the shares in Rialti S.p.A. on October 31, 2023.

The transfers were mainly related to OMV Petrom following the final investment decision for the Neptun Deep project. Consequently, the related oil and gas assets in the amount of EUR 483 mn were reclassified from intangible assets to property, plant, and equipment.

Property, plant and equipment with a total carrying amount of EUR 1,065 mn (2022: EUR 34 mn), mainly related to the SapuraOMV disposal group, were transferred to assets held for sale. For more details see Note 22 – Assets and liabilities held for sale.

Further details on impairments and write-ups can be found in Note 8 – Depreciation, amortization, impairments and write-ups.

Contractual obligations for acquisitions
In EUR mn
	2023	2022
Intangible assets	296	326
Property, plant, and equipment	3,345	1,410
Contractual obligations	3,640	1,736

In 2023, the contractual commitments for acquisitions of fixed assets were mainly related to activities in the segments Energy and Chemicals & Materials. The increase in commitments in 2023 was mainly related to the Neptun Deep project in Romania.

OMV as a lessee

Right-of-use assets included mainly leases for filling station sites and buildings, other land, vessels, pipelines, and office buildings. In addition, OMV leases the storage infrastructure related to the propane dehydrogenation (PDH) plant in Kallo, Belgium, a hydrogen plant at the Petrobrazi refinery in Romania, gas storage facilities in Austria and Germany, technical equipment, and vehicles.

Leases not yet commenced in 2023 but committed amounted to EUR 94 mn, mainly in the scope of the long-term charter and gas storage contracts (2022: EUR 10 mn).

Right-of-use assets recognized under IFRS 16
In EUR mn
	Land and buildings	Plant and machinery	Other fixtures, fittings and equipment	Total

	2023
January 1	581	504	149	1,233
Changes in the consolidated group¹	—	29	—	29
Additions	123	80	81	283
Depreciation	–82	–25	–69	–176
Other movements	–66	105	–11	27
December 31	556	692	149	1,397

	2022

January 1	555	42	174	771
Additions	102	498	40	640
Depreciation	–63	–35	–64	–162
Other movements	–13	–1	–2	–16
December 31	581	504	149	1,233

¹Mainly from the change in the consolidation method of Renasci N.V.

For information on lease liabilities see Note 26 – Liabilities.

18 Equity-accounted investments

Material associates and joint ventures

Borealis owns a 36% stake (2022: 36%) in Borouge PLC (PLC) and Abu Dhabi National Oil Company owns the remaining 54%. PLC is registered in Abu Dhabi and is the holding company for its 100% interest in Abu Dhabi Polymers Company Limited (Borouge) (ADP) and its 84.75% interest in Borouge Pte. Ltd. (PTE).
As of December 31, 2023, the fair value of the Group’s interest in PLC, which is listed on the Abu Dhabi Securities Exchange of the United Arab Emirates (UAE), was EUR 6,586 mn, based on the quoted market price available on the UAE stock exchange. The corresponding book value of PLC was EUR 3,653 mn as of December 31, 2023.
The “Borouge investments” (representing the total OMV share in PLC, ADP, PTE) are a leading provider of innovative, value-creating plastic solutions for the energy, infrastructure, automotive, healthcare, and agriculture industries, as well as advanced packaging applications. They are also responsible for the marketing and sales of the products produced. As joint control is exercised, Borouge investments are accounted for as a joint venture.
Bayport Polymers LLC (Baystar), registered in Pasadena (incorporated in Wilmington), passed a significant milestone in October 2023 with the start-up of the new 625,000 metric t/year Borstar^® polyethylene (PE) unit at the production site in Pasadena, Texas (United States). The goal is to deliver a broad range of products to meet the growing global demand for sustainable and highly energy-efficient plastic products. Baystar also started its operation of the new 1 mn metric t/year ethane cracker at Port Arthur, Texas (United States) in 2022. This cracker processes ethane, which is abundantly available and competitively priced in the United States and will supply the Baystar PE units. As OMV has joint control over Bayport Polymers LLC (50/50 share split) and rights to the net assets, it accounts for the company as a joint venture.

OMV also holds a 15% (2022: 15%) interest in Abu Dhabi Oil Refining Company, registered in Abu Dhabi, which runs a refinery hub with integrated petrochemicals. According to the contractual agreement between the shareholders, OMV has strong participation rights that represent a significant influence as per the definition in IAS 28. In 2022, a net write-up of EUR 67 mn was recognized for the ADNOC Refining & Trading CGU.

The tables below contain summarized financial information for the material associates and joint ventures.

Statement of comprehensive income – material associates
In EUR mn
	2023	2022
	Abu Dhabi Oil Refining Company	Abu Dhabi Oil Refining Company
Sales revenue	29,259	36,241
Net income for the year	1,187	2,054
Other comprehensive income	11	2
Total comprehensive income	1,198	2,056
Group’s share of comprehensive income	180	308

Dividends received	206	116

Statement of financial position – material associates
In EUR mn
	2023	2022
	Abu Dhabi Oil Refining Company	Abu Dhabi Oil Refining Company
Non-current assets	16,216	17,084
Current assets	3,482	3,888
Non-current liabilities	5,636	6,363
Current liabilities	749	628
Equity	13,313	13,982
Group’s share	1,997	2,097
OMV Group adjustments¹	–553	–573
Carrying amount of investment	1,444	1,524

¹ Related to impairment of investment

Statement of comprehensive income – material joint ventures
In EUR mn
	2023		2022
	Borouge investments	Bayport Polymers LLC	Borouge investments	Bayport Polymers LLC
Sales revenue	5,356	577	5,938	601
Depreciation, amortization, impairments and write-ups	–760	–135	–771	–62
Interest income	25	2	19	1
Interest expenses	–204	–107	–111	–23
Taxes on income and profit	–301	–0	–446	—
Net income for the year	815	–317	1,055	–116
Other comprehensive income	–4	—	20	—
Total comprehensive income	811	–317	1,075	–116
Group’s share of comprehensive income	280	–158	407	–58

Dividends received	455	—	592	—

Statement of financial position – material joint ventures
In EUR mn
	2023		2022
	Borouge investments	Bayport Polymers LLC	Borouge investments	Bayport Polymers LLC
Non-current assets	6,271	3,894	6,842	4,002
Current assets	1,823	352	2,758	188
thereof cash and cash equivalents	320	41	1,072	30
Non-current liabilities	3,165	2,683	4,070	2,443
thereof non-current financial liabilities (excl. other liabilities and provisions)	2,988	2,681	3,884	2,441
Current liabilities	815	343	964	352
thereof current financial liabilities (excl. trade payables, other liabilities, and provisions)	8	195	4	206
Equity	4,114	1,219	4,566	1,396
Group’s share	1,489	610	1,656	698
Goodwill	1,986	—	2,058	—
OMV Group adjustments¹	263	–24	316	–24
Carrying amount of investment	3,737	586	4,030	674

¹ OMV Group adjustments related to Borouge investments mainly referred to purchase price adjustments of EUR 377 mn (2022: EUR 448 mn) related to non-current assets and EUR 113 mn (2022: EUR 131 mn) related to non-current liabilities.

Carrying amount reconciliation
In EUR mn
	2023			2022
	Associate	Joint Ventures		Associate	Joint Ventures
	Abu Dhabi Oil Refining Company	Borouge investments	Bayport Polymers LLC	Abu Dhabi Oil Refining Company	Borouge investments	Bayport Polymers LLC

January 1	1,524	4,030	674	1,181	4,061	688
Currency translation differences	–54	–117	–22	83	248	44
Transfers	—	—	—	—	337²	—
Additions and other changes	—	—	92¹	—	—	—
Net income	178	281	–158	308	400	–58
Write-ups (+)/Impairments (–)	—	—	—	67	—	—
Other comprehensive income	2	–1	—	—	7	—
Disposals and other charges	—	—	—	—	–430³	—
Dividends distributed	–206	–455	—	–116	–592	—
December 31	1,444	3,737	586	1,524	4,030	674

¹ Refers to capital contribution.

² Mainly comprises the direct share in PTE, which is part of Borouge investments and therefore included in the material joint ventures from 2022 onwards.

³ Refers to partial disposal of ADP and PTE as a result of ADX listing in 2022.

Individually immaterial associates and joint ventures

OMV holds a 55.6% (2022: 55.6%) share in Erdöl-Lagergesellschaft m.b.H (ELG), registered in Lannach, which holds the majority of the emergency stock of crude and petroleum products in Austria. In spite of holding the majority of voting rights in the general assembly, OMV does not have control over ELG. Any major decisions on financial and operating policies are delegated to the standing shareholder’s committee, in which a quorum of two thirds of the share capital is required for decisions.

OMV has a 40% interest (2022: 40%) through Borealis in Borouge 4 LLC, registered in Abu Dhabi. The company executes the ongoing Borouge 4 project by developing an ethane-based steam cracker, two polyolefin plants, a 1-Hexene unit, a cross-linked polyethylene plant (XPLE) and an in-depth study for a carbon capture unit. It was previously part of the 40% direct interest in ADP but was scoped out of the Initial Public Offering in June 2022, and was therefore transferred to this newly founded company. However, it is intended to recontribute Borouge 4 at a later point. Given that no board-reserved matters, which affect all relevant activities, can be decided without an affirmative vote by Borealis, OMV has joint control over Borouge 4 LLC and accounts for it as a joint venture.
OMV exercises joint control over Abu Dhabi Petroleum Investments LLC (ADPINV, OMV’s interest 25%, 2022: 25%), registered in Abu Dhabi, and Pak-Arab Refinery Limited (PARCO; indirect interest of OMV amounts to 10%, 2022: 10%), registered in Karachi, and accounts for both investments at-equity. ADPINV is a holding company for its 40% interest in PARCO. As unanimous consent of the parties is required for decisions about relevant activities and OMV has rights to the net assets based on the legal structure, OMV classifies the companies as joint ventures according to IFRS 11.

Furthermore, OMV has a 10% interest (2022: 10%) in Pearl Petroleum Company Limited, registered in Road Town, British Virgin Islands, which is involved in the exploration and production of hydrocarbons in the Kurdistan region of Iraq. According to the joint venture agreement OMV has significant influence within the meaning of IAS 28, as unanimous consent is required for some strategic decisions. Therefore, Pearl is accounted for using the equity method even though OMV’s share is just 10%. In 2023, exploration & appraisal assets included in OMV’s initial purchase price allocation of its share in Pearl were partly impaired.

Through Borealis, OMV acquired additional stakes in Renasci N.V. (Renasci) in 2023. As control was obtained, Renasci is no longer classified as an associated company. Part of the identified assets of Renasci are shares in associated companies: a 21.25% share in BlueAlp Holding B.V. based in Groot-Ammers (Netherlands) and a 25% share in Petrogas International B.V. based in Eindhoven (Netherlands). For further details, please refer to Note 40 – Direct and indirect investments of OMV Aktiengesellschaft.

In 2023, an impairment was recognized for the investment in BlueAlp Holding B.V. For further details please refer to Note 8 – Depreciation, Amortization, Impairments and Write-ups.

Statement of comprehensive income for individually immaterial associates and joint ventures – Group’s share
In EUR mn
	2023		2022
	Associates	Joint ventures	Associates	Joint ventures
Sales revenue	5,797	360	5,889	461
Net income for the year	23	2	189	30
Other comprehensive income	—	—	0	–2
Total comprehensive income	23	2	190	27

Carrying amount reconciliation for individually immaterial associates and joint ventures
In EUR mn
	2023		2022
	Associates¹	Joint ventures	Associates¹	Joint ventures
January 1	568	498	541	416
Currency translation differences	–15	–33	–8	–13
Changes in the consolidated group²	7	—	–89	—
Transfers	—	—	—	–337³
Additions and other changes	—	2	24	409⁴
Net income	23	2	189	30
Impairments	–23	—	—	—
Other comprehensive income	—	—	0	–2
Disposals and other changes	–1	–2	–1	—
Dividends distributed	–102	–23	–88	–5
December 31	458	443	568	498

¹ Including associated companies accounted at-cost.

² Changes in the consolidated group in 2022 represented the deconsolidation of OJSC Severneftegazprom.

³Mainly comprises the transfer of the direct share in PTE, which is part of “Borouge investments” and therefore included in material joint ventures from 2022 onwards.

⁴ Refers mainly to the capital contribution to Borouge 4 LLC.

19 Inventories

Inventories
In EUR mn
	2023	2022
Crude oil	585	824
Natural gas	367	936
Other raw materials	639	677
Work in progress	219	231
Finished petroleum products	795	1,112
Other finished products¹	923	1,053
Inventories	3,529	4,834

¹ The balance of other finished products is mainly attributable to the finished products of the Borealis Group, i.e., polyolefins and base chemicals.

Purchases (net of inventory variation)
In EUR mn
	2023	2022
Costs of goods and materials	20,600	34,811
Inventory changes¹	3,550	4,047
Write-downs to net realizable value and write-offs of inventories	479	466
Reversal of inventory write-downs	–407	–25
Purchases (net of inventory variation)	24,222	39,298

¹ Mainly related to petrochemical products

The lines “Write-downs to net realizable value and write-offs of inventories” in 2022 and 2023 and “Reversal of inventory write-downs” in 2023 were mainly related to gas in storage.

20 Financial assets

Financial assets
In EUR mn
	Valued at fair value through profit or loss	Valued at fair value through other comprehen- sive income	Valued at amortized cost	Total carrying amount	thereof short-term	thereof long-term

	2023
Trade receivables from contracts with customers	99	—	2,571	2,670	2,670	—
Other trade receivables	—	—	785	785	785	—
Total trade receivables	99	—	3,356	3,455	3,455	—
Equity investments	1	56	—	57	—	57
Investment funds	28	—	—	28	—	28
Bonds	—	—	285	285	245	39
Derivatives designated and effective as hedging instruments	—	52	—	52	50	2
Other derivatives	890	—	—	890	692	198
Loans	—	—	910	910	5	905
Other sundry financial assets	2	—	1,610	1,612	1,139	474
Total other financial assets	921	108	2,805	3,834	2,130	1,704
Financial assets	1,020	108	6,160	7,288	5,584	1,704


	2022
Trade receivables from contracts with customers	136	—	3,351	3,487	3,487	—
Other trade receivables	—	—	735	735	735	—
Total trade receivables	136	—	4,086	4,222	4,222	—
Equity investments	24	19	—	42	—	42
Investment funds	26	—	—	26	—	26
Bonds	—	—	52	52	32	20
Derivatives designated and effective as hedging instruments	10	370	—	380	263	116
Other derivatives	2,867	—	—	2,867	2,114	753
Loans	—	—	711	711	82	628
Other sundry financial assets	—	—	1,850	1,850	1,437	413
Total other financial assets	2,927	389	2,612	5,928	3,929	1,999
Financial assets	3,063	389	6,699	10,150	8,151	1,999

Financial assets at fair value through profit or loss mainly consisted of financial assets held for trading.

Starting March 1, 2022, investments in the Russian entities JSC GAZPROM YRGM Development (YRGM) and OJSC Severneftegazprom (SNGP) were accounted for at fair value through profit or loss according to IFRS 9 following their deconsolidation, which was triggered by the Russian war on Ukraine.
As of December 31, 2022, the fair value of the investments in YRGM and SNGP was further reduced to a book value of EUR 23 mn, leading to an additional loss of EUR 370 mn in the financial result.
On December 19, 2023, the Russian President signed a decree regarding the Yuzhno-Russkoye field. According to this decree, OMV’s shareholdings in Russian entities and consequently its interests in the gas field are to be transferred to new Russian companies. Those companies will ultimately be held by the insurance company JSC SOGAZ and Gazprom. The proceeds from the transfer of the OMV interest to JSC SOGAZ are to be paid into a Russian special account. At first glance, this decree equals a unilateral and irreversible expropriation by seizing the interests of OMV in return for compensation that will be determined by Russia and placed in accounts that will eventually be under Russian control. OMV is examining the current facts and further developments and considering steps to protect its rights.

Based on this latest development and the unchanged situation with regard to the Russian war on Ukraine, OMV considers its investments in YRGM and SNGP to have a fair value of nil as of December 31, 2023, leading to a further negative fair value adjustment in the financial result for 2023 in the amount of EUR 23 mn.

The position loans in 2023 included loans and the related accrued interests under a member loan agreement with Bayport Polymers LLC in the amount of EUR 701 mn (2022: EUR 657 mn). In addition, the position included EUR 155 mn from a drawdown and the related interest accrued from a shareholder loan agreement (SHL) entered into on February 3, 2023, with Borealis AG as the lender and Borouge 4 LLC as the borrower to part finance Borouge 4 LLC’s CAPEX requirements for Borouge 4. The SHL is structured as a facility with a five-year tenor. Borealis retains the right to accelerate the prepayment of the outstanding amounts at the point of reintegration into Borouge PLC.

Other sundry financial assets included expenditure recoverable from the Romanian State amounting to EUR 399 mn (2022: EUR 326 mn) related to obligations for decommissioning and environmental costs in OMV Petrom SA. The receivables consisted of EUR 391 mn (2022: EUR 318 mn) for costs relating to decommissioning and EUR 8 mn (2022: EUR 8 mn) for costs relating to environmental remediation.
On October 2, 2020, as party in the privatization agreement, OMV AG initiated arbitration proceedings against the Romanian Ministry of Environment, in accordance with the ICC Rules, regarding certain claims unpaid by the Ministry of Environment in relation to well decommissioning and environmental restoration obligations amounting to EUR 31 mn. On August 30, 2022, the Arbitral Tribunal issued the Final Award on the arbitration and requested the Ministry of Environment to reimburse to OMV Petrom SA the amount of EUR 31 mn and related interest. In October 2022, the Ministry of Environment challenged the award at the Paris Court of Appeal, a procedure that was still ongoing as of December 31, 2023.
In Q4/22, OMV Aktiengesellschaft, as party in the privatization agreement, initiated two other arbitration proceedings against the Romanian Ministry of Environment, in accordance with the ICC Rules, which have been further consolidated in a single case, regarding certain claims unpaid by the Ministry of Environment in relation to well decommissioning and environmental remediation works. Such claims amount to EUR 47 mn and as of December 31, 2023, the arbitration procedure is ongoing.

In 2022 this position also included receivables related to insurance proceeds of around EUR 200 mn with regards to the incident at the crude distillation unit at the Schwechat refinery in June 2022, which was fully paid in 2023.

Additionally, other sundry financial assets contained receivables towards partners in the Exploration & Production business as well as seller participation notes and complementary notes in Carnuntum DAC (see Note 38 – Unconsolidated structured entities – for further details).

Equity investments measured at FVOCI
In EUR mn
	2023			2022
Investment	Fair value	Fair value adjustment through OCI	Dividend recognized as income	Fair value	Fair value adjustment through OCI	Dividend recognized as income
Eavor Technologies Inc.	34	—	—	—	—	—
Hycamite TCD Technologies Ltd.	5	—	—	—	—	—
APK Pensionskasse AG	2	–1	—	2	–0	0
Wiener Börse AG	6	–1	1	7	3	1
FSH Flughafen-Schwechat-Hydranten-Gesellschaft GmbH & Co OG	2	—	—	2	—	0
WAV Wärme Austria VertriebsgmbH	—	—	1	2	—	0
Bockatech Ltd.	5	—	—	3	—	—
Everen Limited	0	—	3	0	—	4
Other	2	—	0	2	—	0
Equity investments measured at FVOCI	56	–2	4	19	2	6

Probability of default

	Equivalent to external credit rating	Probability of default
		2023	2022
Risk Class 1	AAA, AA+, AA, AA–, A+, A, A–	0.13%	0.13%
Risk Class 2	BBB+, BBB, BBB–	0.44%	0.44%
Risk Class 3	BB+, BB, BB–	1.18%	1.18%
Risk Class 4	B+, B, B–	8.52%	8.52%
Risk Class 5	CCC/C	29.54%	29.54%
Risk Class 6	SD/D	100.00%	100.00%

For further details on credit risk management see Note 30 – Risk Management.

Impairments of trade receivables
In EUR mn
	2023	2022
January 1	65	51
Amounts written off	–3	–4
Net remeasurement of expected credit losses	41	23
Currency translation differences	–1	0
Reclassification to assets held for sale	–1	–4
Changes in the consolidated group	–0	–1
December 31	101	65

The net remeasurement of expected credit losses was mainly related to the trade receivables from contracts with customers and increased due to re-evaluation of receivables in Tunisia.

Credit quality of trade receivables
In EUR mn
	2023	2022
Risk Class 1	1,155	1,457
Risk Class 2	855	1,239
Risk Class 3	873	927
Risk Class 4	252	333
Risk Class 5	268	153
Risk Class 6	53	42
Total gross carrying amount	3,457	4,151
Expected credit losses	–101	–65
Total	3,356	4,086

Impairments of other financial assets at amortized cost
In EUR mn
	12-month ECL	Lifetime ECL not credit impaired	Lifetime ECL credit impaired	Total

	2023
January 1	10	44	1,311	1,365
Amounts written off	–1	—	–5	–6
Net remeasurement of expected credit losses	4	–11	140	133
Currency translation differences	–0	–1	–3	–5
December 31^{1, 2}	13	32	1,442	1,487


	2022
January 1	9	31	211	251
Amounts written off	0	—	–5	–5
Net remeasurement of expected credit losses	2	12	1,100	1,114
Currency translation differences	0	2	4	6
December 31^{1, 2}	10	44	1,311	1,365

¹ “Lifetime ECL credit impaired” included fully impaired gross carrying amount of loan receivables including accrued interest related to the financing agreements for the Nord Stream 2 pipeline project in the amount of EUR 1.2 bn (2022: EUR 1.1 bn).

² “12-month ECL” included an amount of EUR 1 mn (2022: EUR 1 mn) and “Lifetime ECL credit impaired” an amount of EUR 8 mn (2022: EUR 9 mn) related to expenditure recoverable from the Romanian State, which are outside the scope of IFRS 9.

Credit quality of other financial assets at amortized cost
In EUR mn
	12-month ECL	Lifetime ECL not credit impaired	Lifetime ECL credit impaired	Total	12-month ECL	Lifetime ECL not credit impaired	Lifetime ECL credit impaired	Total

	2023				2022
Risk Class 1	826	—	—	826	1,014	86	80	1,180
Risk Class 2¹	751	—	8	759	702	—	9	710
Risk Class 3	1,140	94	77	1,312	826	—	2	827
Risk Class 4	2	—	—	2	4	—	—	4
Risk Class 5²	36	—	1,245	1,281	35	—	1,112	1,147
Risk Class 6	—	—	112	112	0	—	109	109
Total gross carrying amount	2,755	94	1,442	4,292	2,580	86	1,311	3,977
Expected credit losses³	–13	–32	–1,442	–1,487	–10	–44	–1,311	–1,365
Total	2,742	62	—	2,805	2,570	42	—	2,612

¹ “12-month ECL” included an amount of EUR 401 mn (2022: EUR 327 mn) and “Lifetime ECL credit impaired” an amount of EUR 8 mn (2022: EUR 9 mn) related to expenditure recoverable from the Romanian State, which are outside the scope of IFRS 9.

² “Lifetime ECL credit impaired” included fully impaired gross carrying amount of loan receivables including accrued interests related to the financing agreements for the Nord Stream 2 pipeline project in the amount of EUR 1.2 bn (2022: EUR 1.1 bn).

³ “12-month ECL” included an amount of EUR 1 mn (2022: EUR 1 mn) and “Lifetime ECL credit impaired” an amount of EUR 8 mn (2022: EUR 9 mn) related to expenditure recoverable from the Romanian State, which are outside the scope of IFRS 9.

21 Other assets

Other assets
In EUR mn
	2023		2022
	Short-term	Long-term	Short-term	Long-term
Prepaid expenses	89	13	84	15
Advance payments on fixed assets	184	—	72	14
Other payments on account	124	25	194	16
Receivables from other taxes and social security	202	40	395	40
Contract assets	—	8	—	8
Emission rights¹	630	—	657	—
Emission rights to be received from customers¹	42	—	36	—
Other non-financial assets	81	80	194	22
Other assets	1,351	165	1,632	115

¹ For further details refer to Note 2 – Effects of climate change and the energy transition.

The increase in “Advance payments on fixed assets” is mainly attributable to the Neptun Deep project in Romania.

OMV voluntarily changed its accounting policy for the presentation of purchased emissions certificates and provisions for CO₂ emissions in the balance sheet. For more details refer to Note 3 – Accounting policies, judgments, and estimates.

“Other non-financial assets” in 2022 mainly consisted of receivables from Romanian authorities in relation to compensation for the sales of natural gas at capped prices to clients that were allocated to the Company as a Supplier of Last Resort and for electricity sales at capped prices. It also included receivables in relation to the subsidies for half of the 0.50 RON per liter voluntary price reduction for the sale of diesel and gasoline in Romania, which applied only in 2022.

22 Assets and liabilities held for sale

Assets and liabilities held for sale
In EUR mn
	Sapura OMV	Yemen
	Energy		OMV Group

	2023
Intangible assets	272	—	272
Property, plant, and equipment	1,059	8	1,067
Other assets incl. deferred taxes	4	2	6
Non-current assets	1,335	10	1,345
Inventories	1	21	22
Trade receivables	30	0	30
Other assets	153	31	184
Cash at bank and in hand	88	3	91
Current assets	272	55	327
Total assets	1,607	65	1,671
Provisions for pensions and similar obligations	—	15	15
Provisions for decommissioning and restoration obligations	6	—	6
Other liabilities incl. provisions	0	10	10
Deferred taxes	319	—	319
Non-current liabilities	325	25	351
Trade payables	208	9	217
Provisions for decommissioning and restoration obligations	2	—	2
Other liabilities incl. provisions	36	17	52
Current liabilities	245	26	271
Total liabilities	571	51	622

Assets and liabilities held for sale
In EUR mn
	Nitrogen business unit	Rosier	Total	OMV retail business Slovenia	Other	Total
	C&M			F&F			Energy	C&O	OMV Group

	2022
Intangible assets	3	0	3	0	0	0	—	—	3
Property, plant and equipment	658	4	662	121	13	134	20	3	819
Equity-accounted investments	6	—	6	—	—	—	—	—	6
Other assets incl. deferred taxes	27	1	28	—	4	4	—	—	32
Non-current assets	694	5	699	121	17	139	20	3	860
Inventories	275	33	308	46	1	48	16	—	371
Trade receivables	150	8	159	63	—	63	0	—	221
Other assets	151	2	153	6	—	6	30	—	189
Cash at bank and in hand	12	4	16	5	—	5	14	—	35
Current assets	588	47	635	120	1	121	59	—	816
Total assets	1,282	52	1,334	241	19	260	79	3	1,676
Provisions for pensions and similar obligations	49	—	49	0	—	0	14	—	63
Lease liabilities	7	1	8	27	—	27	—	—	35
Provisions for decommissioning and restoration obligations	11	—	11	0	1	1	—	—	13
Other liabilities incl. provisions and deferred taxes	37	1	38	1	—	1	20	—	59
Non-current liabilities	105	1	106	29	1	30	34	—	170
Trade payables	229	9	238	22	—	22	12	—	272
Other liabilities incl. provisions	124	3	127	43	1	44	13	—	184
Current liabilities	353	12	365	65	1	66	25	—	456
Total liabilities	458	13	471	94	2	96	59	—	626

Chemicals & Materials

On January 2, 2023, the sale of Rosier to the YILDIRIM Group’s YILFERT Holding was completed without having a material impact on the Consolidated Income Statement.
On July 5, 2023, the sale of the nitrogen business unit in the Borealis Group, including fertilizer, technical nitrogen, and melamine products to AGROFERT, a.s. was completed. For further information on the transaction see Note 4 – Changes in Group structure and on the valuation see Note 8 – Depreciation, amortization, impairments and write-ups.

Fuels & Feedstock

On May 31, 2023, OMV closed the transaction to sell 17 Avanti filling stations in Germany without having a material impact on the Consolidated Income Statement.
On June 30, 2023, OMV closed the transaction to sell its shares in OMV Slovenija trgovina z nafto in naftnimi derivati, d.o.o. to the MOL Group. The initial purchase price before customary closing adjustments amounted to EUR 311 mn (for the 92.25% OMV stake). For further details regarding the effects of the sale please refer to Note 4 – Changes in Group structure.

Energy

As of December 31, 2023, assets held for sale and liabilities associated with assets held for sale in the Energy segment were related to the SapuraOMV disposal group and Yemen operating entities.
On December 4, 2023, the Executive Board of OMV decided to enter into negotiations with interested bidders – within the framework of the ongoing competitive bidder process conducted by OMV – on the commercial terms and contractual documentation for the potential sale of 50% of the shares in SapuraOMV Upstream Sdn. Bhd. (“SapuraOMV”), which led to the reclassification to “held for sale”. The reclassification did not lead to an impairment loss. Further information is included in Note 39 – Subsequent events.
As of December 31, 2023, the remaining part of assets held for sale and liabilities associated with assets held for sale in the Energy segment was related to Yemen operating entities, which were reclassified to “held for sale” in 2022. In both 2023 and 2022, the measurement at fair value less cost of disposal led to an impairment.

23 Equity of stockholders of the parent

Capital stock

The capital stock of OMV Aktiengesellschaft consists of 327,272,727 (2022: 327,272,727) fully paid no par value shares with a total nominal value of EUR 327,272,727 (2022: EUR 327,272,727). There are no different classes of shares and no shares with special rights of control. All shares are entitled to dividends for the financial year 2023, with the exception of treasury shares held by OMV Aktiengesellschaft.
As the authorized capital granted by the Annual General Meeting on May 14, 2014 expired on May 14, 2019, the Annual General Meeting decided upon a new authorized capital on September 29, 2020. Specifically, it authorized the Executive Board until September 29, 2025 to increase the share capital of OMV with the consent of the Supervisory Board – at once or in several tranches – by an amount of up to EUR 32,727,272 by issuing up to 32,727,272 new no-par value common voting shares in bearer form in return for contributions in cash. The capital increase can also be implemented by way of indirect offer for subscription after taking over by one or several credit institutions according to Section 153 Paragraph 6 of the Austrian Stock Corporation Act. The issue price and the conditions of issuance can be determined by the Executive Board with the consent of the Supervisory Board.
Further, the Annual General Meeting authorized the Executive Board, subject to the approval of the Supervisory Board, to exclude the subscription right of the shareholders if the capital increase serves to (i) adjust fractional amounts or (ii) satisfy stock transfer programs, in particular long term incentive plans, equity deferrals or other participation programs for employees, senior employees and members of the Executive Board/management boards of the Company or one of its affiliates, or other employees stock ownership plans.
In addition, the Supervisory Board was authorized to adopt amendments to the Articles of Association resulting from the issuance of shares according to the authorized capital.

Capital reserves

Capital reserves have been formed by the contribution of funds into OMV Aktiengesellschaft by its shareholders over and above the capital stock, on the basis of their ownership relationship.

Hybrid capital

The hybrid capital recognized in equity in the amount of EUR 2,483 mn consists of perpetual, subordinated hybrid notes. According to IFRS, the net proceeds of the hybrid notes are fully treated as equity because the repayment of the principal and the payments of interest are solely at the discretion of OMV.
On December 7, 2015, OMV issued hybrid notes with an aggregate principal amount of EUR 1,500 mn, in two tranches of EUR 750 mn:

_►The hybrid notes of tranche 1, with the first call date in 2021, were called and redeemed at their principal amount (plus interest accrued) on November 30, 2021.
_►The hybrid notes of tranche 2 bear a fixed interest rate of 6.250% per annum until, but excluding, December 9, 2025, which is the first call date of tranche 2. From December 9, 2025 (including), tranche 2 will bear an interest rate per annum at the relevant five-year swap rate for the relevant interest period plus a specified margin and a step-up of 100 basis points.

Interest is due and payable annually in arrears on December 9 of each year, unless OMV elects to defer the relevant interest payments. The outstanding deferred interest must be paid under certain circumstances, in particular, if the Annual General Meeting of OMV resolves upon a dividend payment on OMV shares.
On June 19, 2018, OMV issued a hybrid bond with a principal amount of EUR 500 mn. The hybrid bond bears a fixed interest rate of 2.875% per annum until, but excluding, June 19, 2024. From June 19, 2024 (including), until, but excluding, June 19, 2028, the hybrid notes will bear interest at a rate corresponding to the relevant five-year swap rate plus a specified margin. From June 19, 2028 (including), the notes will bear an interest rate per annum at the relevant five-year swap rate for the relevant interest period plus a specified margin and a step-up of 100 basis points. Interest is due and payable annually in arrears on June 19 of each year, unless OMV elects to defer the relevant interest payments. The outstanding deferred interest must be paid under certain circumstances, in particular, if the Annual General Meeting of OMV resolves upon a dividend payment on OMV shares.
On September 1, 2020, OMV issued hybrid notes with an aggregate principal amount of EUR 1,250 mn, in two tranches (Tranche 1: EUR 750 mn; Tranche 2: EUR 500 mn) with the following interest payable:

_►The hybrid notes of tranche 1 bear a fixed interest rate of 2.500% per annum until, but excluding, September 1, 2026, which is the first reset date of tranche 1. From the first reset date (including) until, but excluding, September 1, 2030, the hybrid notes of tranche 1 will bear interest per annum at a reset interest rate which is determined according to the relevant five-year swap rate plus a specified margin. From September 1, 2030 (including), the hybrid notes of tranche 1 will bear an interest rate per annum at the relevant five-year swap rate for each interest period thereafter plus a specified margin and a step-up of 100 basis points.
_►The hybrid notes of tranche 2 bear a fixed interest rate of 2.875% per annum until, but excluding, September 1, 2029, which is the first reset date of tranche 2. From the first reset date (including) until, but excluding, September 1, 2030, the hybrid notes of tranche 2 will bear interest per annum at a reset interest rate which is determined according to the relevant five-year swap rate plus a specified margin. From September 1, 2030 (including), the hybrid notes of tranche 2 will bear an interest rate per annum at the relevant five-year swap rate for each interest period thereafter plus a specified margin and a step-up of 100 basis points.

Interest is due and payable annually in arrears on September 1 of each year, unless OMV elects to defer the relevant interest payments. The outstanding deferred interest must be paid under certain circumstances, in particular, if the Annual General Meeting of OMV resolves upon a dividend payment on OMV shares.
The hybrid notes outstanding as of December 31, 2023, do not have a scheduled maturity date and they may be redeemed at the option of OMV under certain circumstances. OMV has, in particular, the right to repay the hybrid notes at certain call dates. Any accrued unpaid interest becomes payable when the notes are redeemed. In the case of a change of control, for example, OMV may call the hybrid notes for redemption or else the applicable interest rate will be subject to an increase according to the terms and conditions of the hybrid notes.

Revenue reserves

The net income and losses of all companies, which are in the scope of consolidation are included in the Group’s revenue reserves, adjusted for the purpose of consolidation.

Treasury shares

The Annual General Meetings for the years 2000 to 2011 (with the exception of 2010) and 2019 approved the repurchase of treasury shares. The costs of repurchased shares have been reflected as a reduction in equity. Gains or losses on the re-issue of treasury shares (issue proceeds less acquisition cost) result in an increase or a reduction in capital reserves.
On June 2, 2021, the Annual General Meeting authorized the Executive Board for a period of five years from the adoption of the resolution, therefore, until and including June 1, 2026, subject to the approval of the Supervisory Board, to dispose of or utilize repurchased treasury shares or treasury shares already held by the Company to grant to employees, executive employees and/or members of the Executive Board/management boards of the Company or its affiliates including for purposes of share transfer programs, in particular long-term incentive plans including equity deferrals or other stock ownership plans, and to thereby exclude the general purchasing right of shareholders (exclusion of subscription rights). The authorization can be exercised as a whole or in parts or even in several tranches by the Company, by a subsidiary (Section 189a Number 7 of the Austrian Commercial Code) or by third parties for the account of the Company.

The gains and losses recognized directly in other comprehensive income and their related tax effects were as follows:

Tax effects relating to each component of other comprehensive income
In EUR mn
	2023			2022
	Pre-tax expense (–) income (+)	Tax expense (–) benefit (+)¹	Net-of-tax expense (–) income (+)	Pre-tax expense (–) income (+)	Tax expense (–) benefit (+)¹	Net-of-tax expense (–) income (+)
Currency translation differences	–542	–0	–542	603	–2	602
Gains (+)/losses (–) on hedges	–360	83	–277	40	–3	37
Remeasurement gains (+)/losses (–) on defined benefit plans	–58	7	–51	263	–35	228
Gains (+)/losses (–) on equity investments	–2	1	–2	2	1	3
Gains (+)/losses (–) on hedges that are subsequently transferred to the carrying amount of the hedged item	–27	6	–21	–67	8	–58
Share of other comprehensive income of equity-accounted investments	0²	n.a.	0	6²	n.a.	6
Other comprehensive income for the year	–989	97	–893	847	–30	817

¹ Including valuation allowances for deferred tax assets for the Austrian tax group. For further details please refer to Note 14 – Taxes on income and profit.

²Represents net-of-tax amounts

On May 31, 2023, the payment of a total dividend of EUR 5.05 per share was approved at the Annual General Meeting, of which EUR 2.80 per eligible share represents the regular dividend and EUR 2.25 per eligible share a special dividend. The total dividend for the financial year 2022 was paid in June 2023 and amounted to EUR 1,652 mn. In 2022, the dividend payment for the financial year 2021 amounted to EUR 752 mn (EUR 2.30 per share). The interest paid for hybrid bonds in 2023 amounted to EUR 94 mn (2022: EUR 94 mn).
On January 31, 2024, the Executive Board of OMV Aktiengesellschaft proposed a total dividend of EUR 5.05 per share for the financial year 2023. The proposed total dividend comprises a regular dividend of EUR 2.95 per share and a special dividend of EUR 2.10 per share, which are subject to approval at the Annual General Meeting in 2024.

Treasury shares

	Number of shares	In EUR mn
January 1, 2022	261,326	2.9
Disposals	–59,652	–0.7
December 31, 2022	201,674	2.2

Disposals	–59,667	–0.7
December 31, 2023	142,007	1.6

Development of number of shares in issue

	Number of shares	Treasury shares	Shares in issue
January 1, 2022	327,272,727	261,326	327,011,401
Used for share-based compensations	—	–59,652	59,652
December 31, 2022	327,272,727	201,674	327,071,053

Used for share-based compensations	—	–59,667	59,667
December 31, 2023	327,272,727	142,007	327,130,720

24 Non-controlling interests

Subgroups with material NCI
In EUR mn
	2023			2022
Subgroups	% NCI	Net income allocated to NCI	Accumulated NCI	% NCI	Net income allocated to NCI	Accumulated NCI
OMV Petrom Group	49%	398	3,848	49%	1,023	3,980
Borealis Group	25%	–21	3,021	25%	424	3,212
SapuraOMV Group	50%	–13	251	50%	21	274
Other subsidiaries	n.a.	2	10	n.a.	1	13
OMV Group	n.a.	366	7,131	n.a.	1,470	7,478

The proportion of ownership corresponds to the proportion of voting rights of the non-controlling interests (NCI) in all cases.
The main activities of the OMV Petrom Group, the largest energy company in Southeastern Europe, are oil and gas exploration and production (in Romania, Bulgaria, and Georgia), refining of crudes (in Romania), marketing of petroleum products (in Romania, Bulgaria, Serbia, and Moldova) and marketing of natural gas as well as production and sales of electricity (in Romania and neighboring countries). On November 3, 2022, OMV Petrom SA completed the share capital increase, and as a result the non-controlling interests in the OMV Petrom Group increased by EUR 39 mn. The cash received from third-party shareholders amounted to EUR 30 mn in 2022 and was shown in the Consolidated Statement of Cash Flows in the line item “Increase in non-controlling interest”.
The BorealisGroup is one of the world’s leading providers of advanced and circular polyolefin solutions, a European market leader in polyolefins recycling, and a major producer of base chemicals. The majority of Borealis’ production is located in Europe, with two overseas manufacturing facilities in the United States, one in Brazil and one in South Korea.
The SapuraOMV Group is an oil and gas company based in Malaysia with strong growth prospects consisting of sizeable discovered resources and a strong portfolio of exploration prospects. In addition to Malaysia, it has access to exploration blocks in New Zealand, Australia, and Mexico. The SapuraOMV Group has been reclassified to assets and liabilities associated with assets held for sale in 2023 (see Note 22 – Assets and liabilities held for sale).
The following tables summarize the financial information of the subgroups with material non-controlling interests:

Statement of comprehensive income of subgroups with material NCI¹
In EUR mn
	2023		2022
	OMV Petrom Group	Borealis Group	OMV Petrom Group	Borealis Group
Sales revenue	7,845	7,770	12,440	11,686
Net income for the year	815	33	2,089	1,690
Total comprehensive income	811	–438	2,079	1,941
Attributable to NCI	396	–138	1,019	488
Dividends paid to NCI	498	88	436	175

¹ Figures refer to subgroup level, i.e., including at-equity consolidation and after elimination of intercompany transactions and balances within the subgroup.

Statement of financial position as of December 31 of subgroups with material NCI¹
In EUR mn
	2023		2022
	OMV Petrom Group	Borealis Group	OMV Petrom Group²	Borealis Group
Non-current assets	7,109	11,489	6,509	11,043
Current assets	4,579	4,779	5,308	5,177
Assets held for sale	—	—	3	1,334
Non-current liabilities	2,064	2,611	1,647	2,782
Current liabilities	1,710	1,595	1,989	1,472
Liabilities associated with assets held for sale	—	—	—	471

¹ Figures refer to subgroup level, i.e. including at-equity consolidation and after elimination of intercompany transactions and balances within the subgroup.

² Comparative information dated December 31, 2022, has been restated. For further details see Note 3 – Accounting policies, judgments, and estimates.

Statement of cash flows of subgroups with material NCI¹
In EUR mn
	2023		2022
	OMV Petrom Group	Borealis Group	OMV Petrom Group	Borealis Group
Operating cash flow	2,045	945	2,299	1,572
Investing cash flow	–1,158	–359	–629	–58
Financing cash flow	–1,071	–480	–872	–824
Net increase (+)/decrease (–) in cash and cash equivalents	–198	105	795	691

¹ Figures refer to subgroup level, i.e., including at-equity consolidation and after elimination of intercompany transactions and balances within the subgroup.

25 Provisions

Provisions
In EUR mn
	Pensions and similar obligations	Decommis- sioning and restoration obligations	Other provisions	Total
January 1, 2023	997	3,796	1,316	6,110
Currency translation differences	0	–94	–4	–98
Changes in the consolidated group	1	—	–0	1
Usage and releases	–58	–304	–973	–1,336
Payments to funds	–104	—	—	–104
Allocations	138	757	855	1,751
Transfers	–9	0	8	–0
Reclassified to liabilities associated with assets held for sale¹	—	–7	–3	–10
December 31, 2023	966	4,148	1,200	6,313
thereof short-term as of December 31, 2023	—	69	777	846
thereof short-term as of January 1, 2023	—	82	939	1,021

¹ Related to the SapuraOMV disposal group. For more details refer to Note 22 – Assets and Liabilities held for sale.

Pensions and similar obligations include mainly provisions for pensions, severances, and jubilee bonuses. More information on material IAS 19 employee benefits is included in the Provisions for pensions and similar obligations section.

Decommissioning and restoration details are included in the section Provisions for decommissioning and restoration obligations.

Other provisions mainly include provisions for onerous contracts, provisions for emissions certificates, and other personnel provisions. More information is provided in the Other provisions section.

Provisions for pensions and similar obligations accounted for according to IAS 19

The following tables include details on funded and unfunded pension plans (mainly Austria, Germany, Sweden, and Belgium), severance plans (mainly in Austria), and medical plans (in Belgium).
The majority of the pension commitments of several OMV companies have been transferred to country-specific external pension funds. Pension commitments were calculated based on country- and plan-specific assumptions. Refer to Note 3 – Accounting policies, judgments, and estimates for more details.

Pensions and similar obligations
In EUR mn
	2023	2022
Present value of funded pension obligations	853	832
Fair value of plan assets	–598	–526
Provisions for funded pension obligations	255	305
Present value of unfunded pension obligations	479	470
Present value of obligations for severance and other plans	145	135
Provisions for pensions, severance, and other plans	879	910
Present value of obligations for other long-term benefits	87	87
Total provisions for pensions and similar obligations	966	997

Present value of obligations
In EUR mn
	2023		2022
	Pensions	Severance and other plans	Pensions	Severance and other plans
Present value of obligations as of January 1	1,302	135	1,639	150

Current service costs	21	4	24	10
Interest costs	46	6	18	2
Amounts recognized in the income statement	67	9	42	12

Adjustments due to changes in demographic assumptions	0	–0	–0	1
Adjustments due to changes in financial assumptions	–20	1	–334	–16
Experience adjustments	72	12	56	3
Total remeasurements of the period (OCI)	52	13	–279	–12

Actual benefit payments	–89	–13	–91	–10
Changes in the consolidated group	—	1	—	—
Currency translation differences	–1	–0	–10	0
Reclassification to liabilities associated with assets held for sale	—	—	—	–5
Present value of obligations as of December 31	1,332	145	1,302	135

Fair value of plan assets
In EUR mn
	2023	2022
Fair value of plan assets as of January 1	526	595
Interest income	19	6
Return on plan assets (OCI)	6	–39
Actual benefit payments	–57	–54
Actual employer contributions	104	18
Currency translation differences	–1	–0
Fair value of plan assets as of December 31	598	526

The majority of pension commitments are attributable to plans in Austria and Belgium and were transferred to external pension funds managed by APK Pensionskasse AG in Austria and Vivium, Towers Watson LifeSight and KBC Asset Management in Belgium. The investment of plan assets in Austria is governed by section 25 of the Austrian Pension Fund Act and the Investment Fund Act. In addition to these regulations, the investment guidelines of APK-Pensionskasse AG regulate the spread of asset allocation, the use of umbrella funds, and the selection of fund managers. The investment plans in Belgium follow the investment strategy of the respective insurance company as well as local legal regulations.
The allocation of plan assets was mainly in debt securities and insurance contracts. Aside from the insurance contracts, which are not quoted, the majority of plan assets are invested in liquid active markets for which quoted prices are available.
Expected contributions to post-employment benefit plans for the year 2024 total EUR 26 mn. Moreover, defined benefit contributions related to 2023 in the amount of EUR 24 mn are expected to be paid in 2024.

Provisions and expenses
In EUR mn
	2023		2022
	Pensions	Severance and other plans	Pensions	Severance and other plans
Provisions as of January 1	775	135	1,044	150

Current service costs	21	4	24	10
Net interest costs	27	6	12	2
Amounts recognized in the income statement	48	9	36	12

Adjustments due to changes in demographic assumptions	0	–0	–0	1
Adjustments due to changes in financial assumptions	–20	1	–334	–16
Experience adjustments	72	12	56	3
Return on plan assets	–6	—	39	—
Total remeasurements of the period (OCI)	46	13	–240	–12

Actual benefit payments	–32	–13	–37	–10
Actual employer contributions	–104	—	–18	—
Changes in the consolidated group	—	1	—	—
Currency translation differences	0	–0	–10	0
Reclassification to liabilities associated with assets held for sale	—	—	—	–5
Provisions as of December 31	734	145	775	135

Underlying assumptions for calculating pension expenses and expected defined benefit entitlements as of December 31

	2023		2022
	Pensions	Severance and other plans	Pensions	Severance and other plans
Capital market interest rate	3.25–5.00%	3.75–6.25%	3.20–5.40%	3.50–8.00%
Future increases in salaries	2.69–5.00%	3.25–4.00%	3.40–5.00%	3.40–4.90%
Future increases in pensions	1.75–3.50%	—	2.25–3.50%	—

The following actuarial assumptions for calculating pension expenses and expected defined benefit entitlements are considered as material and are stress tested within the following ranges. The increase or decrease compared to the values accounted for defined benefit obligations in relative deviation terms and in absolute values are as follows:

Sensitivities – percentage change

	2023
	Capital market interest rate		Future increases in salaries		Future increases in pensions
	+1.00%	–1.00%	+0.50%	–0.50%	+0.50%	–0.50%
Pensions	–9.65%	11.38%	1.60%	–1.54%	7.23%	–6.59%
Severance and other plans	–7.25%	8.47%	3.42%	–3.27%	—	—

Sensitivities – absolute change
In EUR mn
	2023
	Capital market interest rate		Future increases in salaries		Future increases in pensions
	+1.00%	–1.00%	+0.50%	–0.50%	+0.50%	–0.50%
Pensions	–128	151	21	–20	96	–88
Severance and other plans	–10	11	5	–4	—	—

Duration profiles and average duration of defined benefit obligations as of December 31
In EUR mn
	2023
	Duration profiles			Duration
	1–5 years	6–10 years	>10 years	in years
Pensions	392	357	582	11
Severance and other plans	52	54	38	8

Allocation of plan assets as of December 31

	2023	2022
Asset category
Equity securities	17%	15%
Debt securities	33%	29%
Cash and money market investments	5%	5%
Insurance contracts	36%	36%
Other	10%	15%
Total	100%	100%

Provisions for decommissioning and restoration obligations
The production facilities and properties of all Group companies are subject to a variety of environmental protection laws and regulations in the countries where they operate. The estimated cost of known environmental obligations has been provided in accordance with the Group’s accounting policies. Provisions for decommissioning and restoration are recognized if an obligation exists at the statement of financial position date.
Management believes that compliance with current laws and regulations and future more stringent laws and regulations will not have a material negative impact on the Group’s results, financial position, or cash flows in the near future.

Provisions for decommissioning and restoration obligations
In EUR mn
	Carrying amount
January 1, 2023	3,796
Currency translation differences	–94
New obligations	15
Increase arising from revisions in estimates	534
Reduction arising from revisions in estimates	–151
Unwinding of discounting	201
Reclassification to liabilities associated with assets held for sale	–7
Usage, disposals, and other changes	–147
December 31, 2023	4,148
thereof short-term as of December 31, 2023	69
thereof short-term as of January 1, 2023	82

The increase arising from revisions in estimates was mainly driven by decreased real interest rates for RON and EUR compared to 2022. Additional impacts stemmed from higher cost estimates, especially in Romania.

The decommissioning provisions related to the SapuraOMV disposal group were reclassified to liabilities associated with assets held for sale. For details see Note 22 – Assets and liabilities held for sale.

Main assumptions for calculating decommissioning and restoration obligations as of December 31¹

	2023
	Discount rate	Inflation rate	Real discount rate
Eurozone (EUR)	2.00–2.25%	2.25%	–0.25–0.00%
New Zealand (NZD)	4.25–4.75%	2.25%	2.00–2.50%
Norway (NOK)	3.25–3.50%	2.25%	1.00–1.25%
Romania (RON)	6.25%	3.50%	2.75%
United States (USD)	3.75–4.00%	2.00%	1.75–2.00%

¹Based on the main currencies of the underlying obligations. Multiple discount rates per currency arise due to different maturities.

A decrease of 1 percentage point in the real discount rates used to calculate the decommissioning provisions would lead to an additional provision of EUR 602 mn; in the opposite case the provision would decrease by EUR 504 mn. For the estimation of maturities and cash outflows of decommissioning and restoration obligations refer to Note 2 – Effects of climate change and the energy transition.

The provisions for decommissioning and restoration costs included obligations attributable to OMV Petrom SA amounting to EUR 1,786 mn (2022: EUR 1,397 mn). Part of the obligations is to be recovered from the Romanian state in accordance with the privatization agreement. For further information see Note 20 – Financial assets.

Other provisions

Other provisions
In EUR mn
	2023		2022
	Short-term	Long-term	Short-term	Long-term
Environmental costs	16	119	11	77
Onerous contracts	64	194	64	176
Other personnel provisions	146	9	149	18
Emissions certificates	437	—	469	—
Residual other provisions	114	100	247	105
Other provisions	777	422	939	377

As at December 31, 2023, the provision for environmental costs included EUR 57 mn relating to the provision for soil remediation at the Arpechim refinery site in Romania. The increase compared to 2022 was mainly related to the newly recognized provision at Borealis to cover future transport and removal costs of contaminated soil at the Kallo location (Belgium) in the amount of EUR 22 mn.
The provisions for onerous contracts were mainly related to associated transportation commitments of OMV Gas Marketing & Trading GmbH.
The provision for onerous contracts related to the Gate LNG obligation of OMV Gas Marketing & Trading GmbH was fully released in the course of 2023, due to favorable LNG market conditions (2022: EUR 32 mn).
At the end of 2023, the provision for the related non-cancellable transportation commitments of OMV Gas Marketing & Trading GmbH amounted to EUR 258 mn (2022: EUR 188 mn). The increase in provision was mainly driven by additional transport capacities that were booked in order to secure alternative supply routes for Austria, as well as changes in underlying parameters (tariffs, discount rate, etc.). The calculation is based on the difference between the fixed costs for using the capacities and the net profit from usage expected to be generated by using the capacities. The discount rate applied was 2.00% (2022: 2.53%). Besides the discount rate, the key assumptions are the gas prices at the relevant gas hubs which are based on forward rates or on management’s best estimates of future prices.

Other personnel provisions included short-term provisions related to personnel reduction schemes of EUR 14 mn (2022: EUR 13 mn). The remaining amount was mainly related to provisions for bonuses.

OMV voluntarily changed its accounting policy for the presentation of purchased emissions certificates and provisions for CO₂ emissions in the consolidated statement of financial positions. For more details on emissions certificates and the change to the accounting policy refer to Note 2 – Effects of climate change and the energy transition – and Note 3 – Accounting policies, judgments, and estimates respectively.

Residual other provisions decreased in 2023 mainly in connection with other risks assessed by the Group in the area of gas and power taxation in Romania.

26 Liabilities

Liabilities
In EUR mn
	2023			2022
	Short-term	Long-term	Total	Short-term	Long-term	Total
Bonds	540	5,534	6,073	1,290	6,030	7,320
Other interest-bearing debts	427	1,043	1,470	128	1,359	1,487
Lease liabilities	181	1,404	1,585	155	1,322	1,476
Trade payables	3,955	—	3,955	5,259	—	5,259
Other financial liabilities	1,424	316	1,740	2,172	489	2,662
Other liabilities	1,613	102	1,715	1,527	124	1,652
Liabilities	8,140	8,398	16,538	10,531	9,325	19,856

Other interest-bearing debts predominantly referred to bank loans, but also included private placements and other funding instruments.

Lease liabilities increased mainly due to the leasing contracts for storage infrastructure related to the propane dehydrogenation plant (PDH) in Kallo, Belgium and a new leasing contract related to a charter vessel, Navigator Aurora, to source Borealis crackers in Sweden and Finland. For further details on lease contracts please refer to Note 17 – Property, plant and equipment.

For further details on cash and non-cash effective changes in bonds, other interest-bearing debts, and lease liabilities please refer to Note 28 – Consolidated Statement of Cash Flows.

OMV participates in several supplier finance programs under which its suppliers may elect to receive early payment of their invoice from a bank by factoring their receivable from the Group to the bank. Under the arrangement, the bank agrees to pay amounts to a supplier participating in the program in respect of invoices owed by the Group and receives settlement from OMV later. The principal purpose of these programs is to facilitate efficient payment processing and enable the consenting suppliers to sell their receivables due from OMV to a bank before their maturity. The Group has not derecognized the majority of the original liabilities to which the arrangement applies because neither was legal release obtained nor was the original liability substantially modified while entering into the arrangement. Most liabilities remain within trade payables and other financial liabilities until payment. From OMV’s perspective, these arrangements do not significantly extend payment terms beyond the normal terms agreed with other suppliers that are not participating in the programs. Consequently, cash effects are included in the cash flow from operating activities.

Bonds

International corporate bonds
In EUR mn
			2023	2022
Nominal	Coupon	Repayment	Carrying amount December 31	Carrying amount December 31
EUR 750,000,000	0.00% fixed	06/16/2023	—	749
EUR 500,000,000	0.75% fixed	12/04/2023	—	500
EUR 500,000,000	1.50% fixed	04/09/2024	505	504
EUR 500,000,000	0.00% fixed	07/03/2025	499	498
EUR 300,000,000	1.75% fixed	12/10/2025	309	315
EUR 1,000,000,000	1.00% fixed	12/14/2026	997	996
EUR 750,000,000	3.50% fixed	09/27/2027	753	752
EUR 500,000,000	2.00% fixed	04/09/2028	506	506
EUR 500,000,000	1.875% fixed	12/04/2028	500	499
EUR 750,000,000	0.75% fixed	06/16/2030	749	748
EUR 750,000,000	2.375% fixed	04/09/2032	759	758
EUR 500,000,000	1.00% fixed	07/03/2034	497	496
International corporate bonds			6,073	7,320

Bonds and other interest-bearing debts

As at December 31, 2023, the OMV Group was in compliance with all financial covenants and had significant headroom compared to the thresholds stipulated by the loan agreements.

Bonds and other interest-bearing debts
In EUR mn
	2023	2022
Short-term loan financing	106	65
Short-term component of long-term financing	860	1,353
Total short-term	967	1,417
Maturities of long-term financing
2024/2023 (short-term component of long-term financing)	860	1,353
2025/2024	1,149	823
2026/2025	1,189	1,149
2027/2026	875	1,185
2028/2027	1,158	871
2029/2028 and subsequent years	2,205	3,360
Total for 2024/2023 onward	7,436	8,742

Breakdown of bonds and other interest-bearing debts
In EUR mn
		2023		2022
		Weighted average interest rate		Weighted average interest rate
Bonds and other long-term interest-bearing debts¹
Fixed rates	EUR	6,911	1.53%	8,148	1.34%
	USD	265	4.06%	319	4.24%
Total		7,176	1.63%	8,467	1.45%
Variable rates²	EUR	45	4.85%	49	3.13%
	USD	183	6.64%	190	5.04%
	Other currencies	32	0.45%	36	0.45%
Total		260	5.57%	274	4.10%
Other short-term interest-bearing debts
EUR		52	—	65	0.07%
NOK		54	—	—	—
Total		106	—	65	0.07%

¹ Including short-term components of long-term debts

² Rates at year-end

Other financial liabilities

Other financial liabilities
In EUR mn
	Short-term	Long-term	Total

	2023
Derivative financial liabilities	386	150	536
Liabilities on derivatives designated and effective as hedging instruments	33	34	67
Liabilities on other derivatives	353	116	469
Other sundry financial liabilities	1,038	166	1,204
Other financial liabilities	1,424	316	1,740


	2022
Derivative financial liabilities	1,263	353	1,615
Liabilities on derivatives designated and effective as hedging instruments	41	4	44
Liabilities on other derivatives	1,222	349	1,571
Other sundry financial liabilities	910	137	1,047
Other financial liabilities	2,172	489	2,662

The table below summarizes the maturity profile of the Group’s financial liabilities based on contractual undiscounted cash flows:

Financial liabilities (undiscounted cash flows)
In EUR mn
	≤1 year	1–5 years	>5 years	Total

	2023
Bonds	597	3,845	2,113	6,555
Other interest-bearing debt	459	857	231	1,547
Lease liabilities	219	588	1,231	2,038
Trade payables	3,955	—	—	3,955
Derivative financial liabilities	393	157	—	550
Other sundry financial liabilities¹	1,039	82	139	1,260
Financial liabilities (undiscounted cash flows)	6,662	5,529	3,713	15,904


	2022
Bonds	1,351	3,394	3,160	7,905
Other interest-bearing debts	141	1,018	393	1,552
Lease liabilities	186	514	1,131	1,831
Trade payables	5,259	—	—	5,259
Derivative financial liabilities	1,260	350	—	1,610
Other sundry financial liabilities¹	910	100	102	1,111
Financial liabilities (undiscounted cash flows)	9,107	5,375	4,786	19,268

¹Including the book value of the financial guarantees issued by Borealis to Bayport Polymers LLC; for further details on the guarantees and the maximum exposure related to it please refer to Note 30 – Risk management.

Other liabilities
In EUR mn
	Short-term	Long-term	Total

	2023
Other taxes and social security liabilities	1,168	—	1,168
Payments received in advance	79	31	109
Contract liabilities	165	66	231
Other sundry liabilities	202	5	208
Other liabilities	1,613	102	1,715


	2022
Other taxes and social security liabilities	1,040	—	1,040
Payments received in advance	57	14	71
Contract liabilities	148	79	227
Other sundry liabilities	282	32	314
Other liabilities	1,527	124	1,652

In 2023, Other taxes and social security liabilities was mainly impacted by the introduction of the solidarity tax on refined crude oil in Romania. Further details are included in Note 13 – Solidarity tax on refined crude oil.

The decrease in other sundry liabilities in 2023 was mainly impacted by lower non-financial liabilities related to oil product exchange contracts concluded between the OMV Group and the national stockholding company in Germany. Furthermore, 2022 was additionally impacted by a product exchange contract between the OMV Group and the national stockholding company in Slovakia. For more details please refer to Note 30 – Risk management.

Contract liabilities
In EUR mn
	2023	2022
January 1	227	228
Revenue recognized that was included in the contract liability balance at the beginning of the period	–140	–126
Increases due to cash received, excluding amounts recognized as revenue during the period	144	125
December 31	231	227

The contract liabilities consisted mainly of non-refundable prepayments of storage fees received from Erdöl-Lagergesellschaft m.b.H., Lannach on the basis of long-term service contracts, as well as of sold vouchers and cash received for customer loyalty programs from OMV’s retail business.

27 Deferred taxes

Deferred taxes
In EUR mn
	Deferred tax assets total	Deferred tax assets not recognized	Deferred tax assets recognized	Deferred tax liabilities

	2023
Intangible assets	141	1	140	199
Property, plant, and equipment	57	9	48	2,259
Inventories	49	—	49	34
Derivatives	81	—	81	206
Receivables and other assets	92	20	73	313
Deferred taxes reclassified to assets and liabilities associated with assets held for sale	127	124	3	319
Provisions for pensions and similar obligations	212	94	118	106
Provisions for decommissioning, restoration obligations and environmental costs	1,247	15	1,233	0
Other provisions	122	—	122	1
Liabilities	354	37	317	10
Tax impairments according to section 12 (3)/2 of the Austrian Corporate Income Tax Act (KStG)	574	—	574	—
Tax loss carryforwards	1,536	1,088	448	—
Outside basis differences	144	—	144	17
Total	4,737	1,387	3,350	3,464
Netting (same tax jurisdictions)			–2,183	–2,183
Deferred taxes reclassified to assets and liabilities associated with assets held for sale			–3	–319
Deferred taxes as per statement of financial position			1,164	962


	2022
Intangible assets	159	—	159	244
Property, plant, and equipment	120	3	117	2,564
Inventories	38	—	38	56
Derivatives	226	—	226	683
Receivables and other assets¹	85	20	65	337
Deferred taxes reclassified to assets and liabilities associated with assets held for sale	153	135	18	52
Provisions for pensions and similar obligations	204	89	116	107
Provisions for decommissioning, restoration obligations and environmental costs	1,217	14	1,203	0
Other provisions¹	152	—	152	32
Liabilities	350	0	350	16
Tax impairments according to section 12 (3)/2 of the Austrian Corporate Income Tax Act (KStG)	684	—	684	—
Tax loss carryforwards	1,635	816	819	—
Outside basis differences	120	—	120	54
Total	5,143	1,076	4,067	4,145
Netting (same tax jurisdictions)			–2,916	–2,916
Deferred taxes reclassified to assets and liabilities associated with assets held for sale			–1	–35
Deferred taxes as per statement of financial position			1,150	1,194

¹Comparative information dated December 31, 2022, has been restated. Deferred tax liabilities (DTL) related to Receivables and other asset and deferred tax assets (DTA) related to Other provisions were increased by EUR 39 mn. For more information see Note 3 – Accounting policies, judgements and estimates.

Deferred taxes were mainly related to different valuation methods, differences in impairments, write-offs, write-ups, and depreciation and amortization, as well as different definitions of costs.
The decrease in DTL related to intangible and tangible assets was mainly driven by the reclassification of SapuraOMV to “held for sale”. For further details see Note 22 – Assets and liabilities held for sale.
As of December 31, 2023, deductible temporary differences for which no DTA was recognized amounted to EUR 929 mn (2022: EUR 783 mn).

The overall net DTA position of tax jurisdictions that suffered a tax loss either in the current or preceding year amounted to EUR 503 mn, of which EUR 464 mn is attributable to the Austrian tax group (2022: EUR 682 mn, of which Austrian tax group EUR 522 mn).

In both 2023 and the previous year, a valuation allowance for the DTA of the Austrian tax group was recognized. The DTA recognized for the Austrian tax group as of December 31, 2023, reflects the expected utilization of deductible temporary differences of balance sheet items and tax losses carried forward based on the mid-term plan for the period 2024–2028. Limitation to the usage of tax losses of 75%, as stipulated by the Austrian Corporate Income Tax Act, was considered in the assessment of the recoverable DTA within and after the planning period.

As of December 31, 2023, OMV recognized tax loss carryforwards of EUR 6,257 mn before allowances (2022: EUR 6,877 mn), of which EUR 1,842 mn (2022: EUR 3,460 mn) is considered recoverable for the calculation of deferred taxes.
Eligibility of losses to be carried forward expires as follows:

Tax loss carryforwards¹
In EUR mn
	2023		2022
	Base amount (before allo- wances)	thereof not recognized	Base amount (before allo- wances)	thereof not recognized
2023	—	—	18	18
2024	2	2	2	2
2025	11	11	11	11
2026	3	3	3	3
2027	52	3	56	3
2028	2	2	—	—
After 2028/2027	2	2	2	0
Unlimited	6,185	4,393	6,784	3,379
Tax losses carryforward	6,257	4,415	6,877	3,417

¹ Tax loss carryforwards related to disposal groups reclassified to held for sale are excluded.

The majority of tax loss carryforwards not recognized referred to the Austrian tax group and France.

As of December 31, 2023, the aggregate amount of temporary differences associated with fully consolidated and equity-accounted investments for which deferred tax liabilities have not been recognized amounted to EUR 9,317 mn (2022: EUR 10,352 mn). The exception criteria as per IAS 12 for not recognizing these deferred tax liabilities is deemed to be fulfilled due to the fact that the Group is able to control or influence the relevant decisions with respect to the timing of the reversal and it is not probable that temporary differences will reverse in the foreseeable future or the Group intends to reinvest undistributed profits. Capital gains on disposals of investments may be realized on various levels of the Group depending on the structuring of potential divestments. Due to the complexity of the Group and the associated tax implications, simplifying assumptions for the calculation have been made that aim to diminish cascade effects.

Supplementary Information on the Financial Position

28 Consolidated Statement of Cash Flows

Cash and cash equivalents
In EUR mn
	2023	2022
Cash at bank and in hand	884	808
Short-term deposits	6,126	7,316
Cash and cash equivalents	7,011	8,124

Significant non-cash items

In 2022, the line “Other changes” in the consolidated statement of cash flows included non-cash effects related to the impairment of the Nord Stream 2 loan. Moreover the line contained impacts from the deconsolidation of JSC GAZPROM YRGM Development (YRGM) and OJSC Severneftegazprom (SNGP) as well as the fair value changes related to the investments in YRGM and SNGP and the contractual position toward Gazprom from the redetermination of the reserves of the Yuzhno Russkoye gas field.
In 2023 and 2022, non-cash additions to fixed assets mainly included effects of new lease contracts and the reassessment of decommissioning and restoration obligations.

Cash flow from investing activities

For details about the cash flow effect from divestments of subsidiaries and businesses please refer to Note 4 – Changes in Group structure.

Cash flow from financing activities

The line “Repayments of long-term borrowings” comprised the repayment of bonds with a nominal value of EUR 1,250 mn.

Changes in liabilities arising from financing activities (incl. liabilities associated with assets held for sale)
In EUR mn
	2023
	Bonds	Other interest- bearing debts	Lease liabilities	Total
January 1	7,320	1,487	1,524	10,331

Repayments of long-term borrowings	–1,250	–44	–184	–1,477
Decrease (–)/increase (+) in short-term borrowings	—	40	—	40
Total cash flows related to financing activities	–1,250	–3	–184	–1,437

Currency translation differences	—	–22	–4	–25
Changes in the consolidated group	—	24	–23	1
Difference between interest expenses and interest paid	3	–15	1	–11
Other changes	—	—	272¹	272
Total non-cash changes	3	–14	247	236

December 31	6,073	1,470	1,587	9,130

¹ Mainly related to new lease agreements

Changes in liabilities arising from financing activities (incl. liabilities associated with assets held for sale)
In EUR mn
	2022
	Bonds	Other interest- bearing debts	Lease liabilities	Total
January 1	8,070	1,765	1,191	11,026

Repayments of long-term borrowings	–750	–114	–183	–1,047
Decrease (–)/increase (+) in short-term borrowings	—	–184	—	–184
Total cash flows related to financing activities	–750	–298	–183	–1,230

Currency translation differences	—	31	2	33
Changes in the consolidated group	—	—	–123	–123
Difference between interest expenses and interest paid	0	–11	1	–11
Other changes	—	—	636¹	636
Total non-cash changes	0	20	515	535

December 31	7,320	1,487	1,524	10,331

¹Mainly related to new lease agreements

The total cash outflow related to lease liabilities amounted to EUR 218 mn (2022: EUR 212 mn).

As of December 31, 2023, the Group had available EUR 5,310 mn of undrawn committed borrowing facilities that can be used for future activities (December 31, 2022: EUR 5,291 mn).

Financing commitments provided to related parties are detailed in Note 37 – Related parties.

29 Contingent liabilities

OMV recognizes provisions for litigations if these are more likely than not to result in obligations. Management is of the opinion that litigations, to the extent not covered by provisions or insurance, there is either no present obligation and/or the outflow is remote and/or they will not materially affect the Group’s financial position.
OMV entered into guarantees as part of the ordinary course of the Group’s business, mainly under credit facilities granted by banks, without cash collateral. No material losses are likely to arise from these. Further information on financial guarantees is included in Note 30 – Risk management.

On April 16, 2020, the Bulgarian Commission on Protection of Competition announced the initiation of an investigation into how prices are determined on the fuel market. OMV Bulgaria EOOD is a subject of this investigation, among other major manufacturers and retailers on the Bulgarian market. During 2020, two requests for information were received from authorities and the responses were submitted in due time. There were no additional requests from the authorities in 2021, 2022, and 2023, but the investigation is not yet finalized. The sanctions for antitrust infringements are up to 10% of the total company’s turnover of the respective undertaking for the financial year prior to the sanctioning decision. At the date of these financial statements, OMV is not able to evaluate the outcome of the investigation and no provision was recorded in this respect.

As of December 31, 2023, one other proceeding was pending against OMV that related to local service contractors in one of the subsidiaries. OMV’s share of the claimed amount is around USD 330 mn. Management currently does not believe that any of the alleged matters will have a material effect on the financial position or results of operations. However, this assessment is based on assumptions deemed reasonable by management including those about future events and uncertainties. The outcome of these matters is ultimately uncertain, such that unanticipated events and circumstances might occur that might cause management to change these assumptions and give rise to a material adverse effect on the financial position in the future.

30 Risk management

Capital risk

OMV’s financial steering framework is built upon the principles of operational efficiency, capital efficiency, financing efficiency, and sustainable portfolio management. With the focus on strengthening OMV’s balance sheet, delivering a positive free cash flow and growing its profitability, the financial steering framework represents sustainable, risk-monitored and future-oriented value creation for OMV and its stakeholders.
OMV manages its capital structure to safeguard its capital base in order to preserve investor, creditor and capital market confidence, as well as to provide a sustainable financial foundation for the future operational development of the Group. OMV’s financing strategy focuses on cash flow and financial stability. Principal targets are a positive free cash flow after dividends and a strong investment grade credit rating on the basis of a healthy balance sheet and a long-term leverage ratio (defined as net debt including leases/(equity + net debt including leases) of below 30%.

Capital management – key performance measures
In EUR mn (unless otherwise stated)
	2023	2022
Bonds	6,073	7,320
Lease liabilities	1,587	1,524
Other interest-bearing debts	1,470	1,487
Debt	9,130	10,331
Cash and cash equivalents	7,011	8,124
Net debt¹	2,120	2,207
Equity	25,369	26,628
Leverage ratio² in %	8	8

¹ Including items that were reclassified to assets or liabilities held for sale

²The leverage ratio is defined as (net debt including leases)/(equity + net debt including leases).

Liquidity risk

For the purpose of assessing liquidity risk, yearly budgeted operating and financial cash flows of the Group are monitored and analyzed on a monthly basis. Thus, every month the Group generates a forecasted net change in liquidity, which is then compared to the total month end balances of money market deposits and loans, as well as to maturities of the current portfolio and the available liquidity reserves of the same month. This analysis provides the basis for financing decisions and capital commitments.
To ensure that the OMV Group remains solvent at all times and retains the necessary financial flexibility, liquidity reserves in the form of committed credit lines and short term uncommitted money market lines are maintained. As of December 31, 2023, the average weighted maturity of the Group’s debt portfolio (excluding lease liabilities) was 4.3 years (as of December 31, 2022: 4.6 years).
The OMV Group’s operational liquidity management is mainly handled via cash pooling systems, which enable optimum use of existing cash and liquidity reserves to the benefit of every individual member of the cash pooling system and the Group as a whole.
High volatility in commodity prices can potentially lead to peak liquidity demands in order to satisfy margin calls for exchange traded activities at short notice. In order to monitor and actively manage the OMV Group’s exposure to margin calls and associated liquidity risk, a number of targeted measures were implemented in 2023. Trading units of the Group are required to perform regular stress tests to evaluate the effect of predefined, extreme commodity prices on credit exposures and margin requirements. Additionally, preference is given to over-the-counter transactions vs. exchange traded instruments when entering new transactions.
Details of the OMV Group’s financial liabilities are shown in Note 26 – Liabilities.

Financial guarantee contracts

In 2023, Borealis AG granted a guarantee for the funding of Borouge 4 LLC under the Italian Export Credit Agency agreement.
In addition, Borealis and its joint venture partner TotalEnergies granted a guarantee for a Revolving Credit Facility (RCF) used by Bayport Polymers LLC (Baystar) as a liquidity instrument to conduct its ordinary cause of business.
On April 19, 2022, Bayport Polymers LLC, which is accounted for using the equity method, partially re-paid the loan to the Group in the amount of EUR 602 mn. The repayment was financed from the two tranches of senior notes in the amount of EUR 324 mn and EUR 278 mn, which mature in 2027 and 2032, respectively. Senior notes issued by Bayport Polymers LLC are fully guaranteed by Borealis AG.
Furthermore, in 2022, Borealis provided a parental guarantee for a lease of railcars.
For further details see the Credit Risk Management section.

Market risk

Derivative and non-derivative instruments are used to manage market price risks resulting from changes in commodity prices, foreign exchange rates and interest rates, which could have a negative effect on assets, liabilities or expected future cash flows.
For the purpose of mitigating market price risks, the Group enters into derivative financial instruments such as OTC swaps, options, futures and forwards.
Swaps do not involve an investment at the time the contracts are concluded; settlement normally takes place at the end of the quarter or month. The premi-ums on purchased options are payable when the contract is concluded; where options are exercised, payment of the difference between the strike price and average market price for the period takes place at contract expiration.
Commodity price risk management refers to analysis, assessment, reporting and hedging of market price risk exposure arising from non-trading and trading activities, covering production (oil, gas, power, and feedstock prices), refining (refinery margin, inventories up to a defined threshold), oil and gas marketing activities (marketing margin, inventories up to a defined threshold), and producing power (spark spreads) in addition to proprietary trading positions.
Limited proprietary trading activities may be performed for the purpose of creating market access within the oil, power, and gas markets up to a defined threshold.
Hedges are generally placed in the legal entities where the underlying exposure exists. When certain conditions are met, the Group may elect to apply IFRS 9 hedge accounting principles in order to recognize the offsetting effects on profit or loss of changes in the fair value of the hedging instruments at the same time as the hedged items.
Derivatives are mostly used for economic hedging purposes and not as speculative investments. However, where derivatives are not designated as hedging instruments (i.e., hedge accounting is not applied), they are valued at fair value through profit or loss for accounting purposes.
The following tables show the fair values of derivative financial instruments together with their notional amounts. The notional amount, recorded gross, is the amount of a derivative’s underlying asset, reference rate or index and is the basis upon which changes in the value of derivatives are measured. The notional amounts indicate the volume of the transactions outstanding at year-end and are not indicative of either the market risk or the credit risk.

Nominal and fair value of open derivative financial instruments
In EUR mn
	2023			2022
	Nominal	Fair value assets	Fair value liabilities	Nominal	Fair value assets	Fair value liabilities
Commodity price risk

Oil incl. oil products	1,120	27	–8	1,337	47	–35
Gas	31	—	—	10	—	–3
Power	411	13	–59	351	320	–2
Commodity hedges (designated in hedge relationship)¹	1,562	39	–67	1,697	367	–41

Oil incl. oil products	10,614	2	–40	7,808	5	–22
Gas	16,104	714	–386	17,730	2,365	–1,374
Power	262	47	–29	779	282	–133
Other²	190	98	–3	220	209	–2
Commodity hedges	27,171	861	–458	26,537	2,862	–1,531

Foreign currency risk

USD	159	3	–0	266	7	–0
SEK	123	7	—	157	—	–4
Foreign currency hedges (designated in hedge relationship)¹	282	10	–0	423	7	–4

USD	702	5	–11	1,207	4	–10
NOK	817	23	–0	2,493	1	–26
SEK	35	0	–0	26	0	–0
Other	153	1	–0	246	1	–4
Foreign currency hedges	1,707	29	–11	3,972	5	–39

Interest rate risk
Interest rate hedges (designated in hedge relationship)¹	100	3	—	103	6	—

¹Including ineffective part of hedges designated in a hedging relationship

²Includes derivatives for European Emission Allowances

The Group’s hedging reserve disclosed in the Consolidated Statement of Changes in Equity relates to the following hedging instruments:

Cash flow hedging – Impact of hedge accounting
In EUR mn
	Forecast purchases	Forecast sales	Foreign currency	Interest rate	Total
	Commodity price risk		Foreign currency risk	Interest rate risk

	2023
Cash flow hedge reserve as of January 1 (net of tax)	245	8	3	7	264
Gains (+)/losses (–) of the period recognized in OCI	–326	–24	5	–2	–347
Amounts reclassified to the income statement	–62	24	1	–4	–40
Amounts reclassified to the balance sheet	42	—	—	—	42
Tax effects	80	–0	–1	1	80
Cash flow hedge reserve as of December 31 (net of tax)	–21	9	7	2	–2

Hedge ineffectiveness recognized in the income statement	—	0	—	—	0

	2022
Cash flow hedge reserve as of January 1 (net of tax)	243	–9	–6	2	230
Gains (+)/losses (–) of the period recognized in OCI	360	–40	–16	7	310
Amounts reclassified to the income statement	–422	63	21	—	–338
Amounts reclassified to the balance sheet	57	—	6	—	63
Tax effects	8	–5	–3	–2	–2
Cash flow hedge reserve as of December 31 (net of tax)	245	8	3	7	264

Hedge ineffectiveness recognized in the income statement	–1	1	—	—	–1

Reserve for unrealized exchange gains (+)/losses (–) for net investment hedge¹
In EUR mn
	Foreign currency risk

	2023	2022
Reserve as of January 1 (net of tax)	–13	–5
Valuation of the USD loans	6	–13
Amounts reclassified to the income statement	—	2
Tax effects	–1	3
Reserve as of December 31 (net of tax)	–9	–13

¹Included in currency translation differences within other comprehensive income

At December 31, 2023, and December 31, 2022, the Group held the following items designated in a fair value hedge relationship:

Impact of fair value hedge accounting on the income statement and statement of financial position
In EUR mn
Hedged Item	Carrying amount	Cumulative amount of fair value hedge adjustment included in the carrying amount of the hedged item	Effective gains (+) /losses (–) of the period recognized in the income statement	Line item in the statement of financial positions
	Liabilities

	2023
Non-financial liability	28	–8	1	Other liabilities


	2022
Non-financial liability	132	2	–6	Other liabilities

At December 31, 2023, and December 31, 2022, the Group held the following cash flow, fair value, and net investment hedging relationships. The table shows the profile of the timing (maturity) of the nominal amount of the hedging instruments:

Impact of hedge accounting on the statement of financial position
In EUR mn
	Forecast purchases	Forecast sales	Recognized liability	Net investment hedge	Foreign currency	Interest hedges
	Commodity price risk			Foreign currency risk		Interest rate risk	Total

	2023
Nominal value	1,447	85	29	109	282	100	2,052
Below one year	1,251	85	29	44	282	100	1,792
More than one year	196	—	—	64	—	—	260
Fair value – assets	39		—	n.a.	10	3	52
Fair value – liabilities	66		1	n.a.	0	—	67


	2022
Nominal value	1,168	385	145	150	423	103	2,374
Below one year	999	385	145	38	423	—	1,989
More than one year	169	—	—	113	—	103	385
Fair value – assets	357		10	n.a.	7	6	380
Fair value – liabilities	37		4	n.a.	4	—	44

The fair value assets and liabilities shown above are presented in the line items Other financial assets and Other financial liabilities in OMV’s Consolidated Statement of Financial Position.

Commodity price risk

European Emission Allowances

All of OMV’s business segments are exposed to fluctuations in the price of greenhouse gas emissions (GHG emissions) under the EU Emissions Trading Scheme (ETS). European Emission Allowance purchases are always executed in due time and it is OMV’s highest priority to fulfill all legal obligations under the ETS. OMV monitors price risks from emission allowances and manages them using derivative instruments (forwards) traded bilaterally on the secondary market (known as over-the-counter or OTC transactions).

Electricity prices

OMV’s business segments are exposed to fluctuations in electricity prices and, hence, closely monitor related price risks. OMV’s business segments hedge parts of the forecasted electricity purchases using derivative instruments and power purchase agreements (PPAs) in order to smooth out the effects from potentially extreme market price movements.

Chemicals & Materials

For petrochemical production, some of the forecasted cracker feedstock purchases and finished product sales are hedged through refined oil product swaps. Cash flow hedge accounting is applied to those derivatives, except for the derivatives that are used to limit the price risk on the inventory held for immediate consumption. Contracts not designated as cash flow hedges are classified as fair value through profit or loss and stated at fair value.
Borealis hedges its forecasted electricity purchases using electricity swaps. For these derivatives cash flow hedge accounting is applied.

Fuels & Feedstock

Fuels & Feedstock is exposed to market price risks arising from trading and non-trading activities, covering production, refining and marketing activities associated with crude oil and oil products in addition to limited proprietary trading positions aiming to create market access within oil and oil product markets.

In Fuels & Feedstock, derivative instruments are used for both hedging selected product sales and reducing exposure to price risks on inventory fluctuations. Crude oil and product swaps are used to hedge the refining margin (crack spread), which is the difference between crude oil prices and bulk product prices.
Furthermore, exchange-traded oil futures as well as OTC contracts (contracts for difference and swaps) are used to hedge short-term purchase and sales market price risks.

Energy

In order to protect the Group’s result and cash flow against the potential negative impact of falling oil and gas prices, and to ensure sufficient liquidity headroom in order to enable the Group’s growth strategy, OMV uses financial derivatives to secure favorable oil and gas prices. When doing so, OMV enters into derivative positions, selling forward parts of its future production, thereby locking in future oil and gas prices and reducing exposure to market prices in the periods for which the hedges are concluded. No such hedges were concluded in 2023 and 2022.
Furthermore, operational commodity price risk management in Energy includes hedging of market price risk exposure arising from non-trading and trading activities of gas marketing (hedge of the price risk on inventory fluctuations and the differences in terms and conditions of purchases and sales), as well as limited proprietary trading positions for the purpose of creating market access within the gas markets.
For all these derivative instruments no hedge accounting was applied.

Hedge Accounting of commodity hedges in Chemicals & Materials and Fuels & Feedstock

In the Chemicals & Materials and Fuels & Feedstock business segments, OMV is particularly exposed to volatile refining margins and inventory risks. In order to mitigate these risks, appropriate hedging activities are taken, which include margin hedges, stock hedges, feedstock and commodity hedges. Additionally, cash flow hedge accounting is applied to forecast electricity purchases and forecast natural gas purchases. Furthermore, a part of the hedges conducted for future sales and purchases of the crackers has been designated as a cash flow hedge.
The risk management objective is to harmonize the pricing of product sales and purchases in order to remain within an approved range of priced stocks at all times, by means of undertaking stock hedges so as to mitigate the price exposure. The range is a defined maximum deviation from the target stock level, as set out in the Annual Plan for hedging activities.
In terms of refinery margin hedges, crude oil and products are hedged separately with the aim of protecting future margins. Endorsed mandates are documented and defined within the Annual Plan for hedging activities.
For refinery margin hedges, only the product crack spread is designated as the hedged item, buying Brent crude oil on a fixed basis and selling the product also on a fixed basis. The crack spread for different products is a separately identifiable component and can therefore represent the specific risk component designated as a hedged item. There are limits set for the volume of planned hedged sales to avoid over-hedging.
For refinery margin hedges, hedge accounting is applied to a limited extent.
In 2023, physical oil product exchange contracts were concluded between the OMV Group and national stockholding companies in Germany. In order to reduce the risk of market price fluctuations between the withdrawal and return of products, derivative swap deals (sell fix, buy floating at the time of withdrawal and buy fix, sell floating at the time of return) were concluded and designated in a fair value hedge relationship (hedge of a recognized liability). In 2022 product exchange transactions with the Austrian, German and Slovakian national stockholding company were concluded.
Stock hedges are used to mitigate price exposure whenever actual priced stock levels deviate from target levels. Forecast sales for oil products and forecast purchase transactions for crude oil and oil products are designated as the hedged item. Historically, Brent crude oil has formed the largest risk component of the stock price, however in some cases oil products are also used for stock hedges. In such cases, the Platts/Argus product price is used as the risk component. Other components like product crack spreads and other local market cost components are not hedged. The hedging relationships are established with a hedge ratio of 1:1, as the underlying risk of the commodity derivatives are identical to the hedged risk components. Hedge ineffectiveness can arise from timing differentials between derivative and hedged item delivery and pricing differentials (derivatives are valued on the future monthly average price (or other periods) and sales/purchases on the pricing on the date of the transaction/delivery).
For “Forecast purchases” and the “Hedge of a recognized liability” the hedge ineffectiveness is included in the line item Purchases (net of inventory variation) in OMV’s Consolidated Income Statement. The hedge ineffectiveness and recycling of “Forecast sales” for hedges where a risk component of the non-financial item is designated as the hedged item in the hedging relationship, is shown in line item ‘Sales revenues’ in OMV’s Consolidated Income Statement.

Foreign exchange risk management

OMV operates in many countries and currencies, therefore industry-specific activities and the corresponding foreign exchange rate risks need to be analyzed precisely. The USD represents OMV’s biggest risk exposure, due to movement of the USD against the EUR and also against OMV Group’s other main currencies (RON, NOK, NZD, and SEK). Movements of these currencies against the EUR are also significant sources of risk. Other currencies have only a limited impact on cash flow and the operating result. The transaction risk to foreign currency cash flows is monitored on an ongoing basis. The Group’s long and short net position is reviewed on a semiannual basis as a minimum and the sensitivity is calculated. This analysis provides the basis for the management of transaction risks on currencies. Since OMV produces commodities that are mainly traded in USD, the OMV Group has an economic USD long position.
FX options, forwards and swaps are mainly used to hedge foreign exchange rate risks on outstanding receivables and payables. The market value of these instruments will move in the opposite direction to the value of the underlying receivable or liability if the relevant foreign exchange rate changes. When certain conditions are met, the Group may elect to apply IFRS 9 hedge accounting principles in order to recognize the offsetting effects on profit or loss of changes in the fair value of the hedging instruments at the same time as the hedged items. Certain hedges, that refer to a forecasted currency position are therefore classified as cash flow hedges and stated at fair value through other comprehensive income.
Translation risk is also monitored on an ongoing basis at Group level and the risk position is evaluated. Translation risk arises on the consolidation of subsidiaries, associated companies and joint ventures with functional currencies different from EUR. The largest exposure results from changes in RON, USD, NOK and SEK denominated assets against the EUR.
Foreign exchange translation differences relating to these net investments are recognized in other comprehensive income.
Borealis has hedged part of its investment in a joint venture that has USD as its functional currency, by designating certain external loans in USD as hedges of the Group’s investments in its foreign operations. The hedged risk in the net investment hedge is the risk of a weakening USD against the EUR that would result in a reduction in the carrying amount of the Group’s net investment in the joint venture in USD. The EUR/USD impact on the measurement of the loans is recognized in other comprehensive income.
To assess hedge effectiveness, the Group determines the economic relationship between the hedging instrument and the hedged item by comparing changes in the carrying amount of the debt that is attributable to a change in the spot rate with changes in the net investment in the foreign operation due to movements in the spot rate (the dollar-offset method). The Group’s policy is to hedge the net investment only to the extent of the debt principal.
There is an economic relationship between the hedged item and the hedging instrument, as the net investment creates a translation risk that will match the foreign exchange risk on the USD borrowing. The Group has established a hedge ratio of 1:1, as the underlying risk of the hedging instrument is identical to the hedged risk component.

Interest rate management

OMV’s debt portfolio as of December 31, 2023 had only limited exposure to changes in interest rates, with almost all liabilities having fixed interest rates. Any future financing activities will be exposed to the prevailing market conditions at the time and this could potentially lead to higher interest expenses.
To facilitate the management of interest rate risk, OMV’s existing liabilities are analyzed in terms of fixed and floating rate borrowings, currencies and maturities. Appropriate ratios for the various categories are established and where necessary, derivative instruments are used to hedge fluctuations outside predetermined ranges.
Interest rate swaps can be used to convert fixed rate debt into floating rate debt and vice versa. The impact of interest rate swaps was not material neither in 2023 nor 2022.
The hedge ineffectiveness and recycling of interest rate swaps are both shown in the line item ‘interest expenses’ in OMV’s Consolidated Income Statement.

Interest rate benchmark reform (IBOR Reform)

All transitions from interest rate benchmarks affected by IBOR reform to alternative benchmark rates have been completed at the reporting date.

Sensitivity analysis

For open hedging contracts, sensitivity analysis is performed to determine the effect of market price fluctuations (+/–10%) on market value. The sensitivity of the OMV Group’s overall earnings differs from the sensitivity shown below, since the contracts concluded are used to hedge operational exposure.
The effect of market price fluctuations on the income statement or other comprehensive income depends on the type of derivative used and on whether hedge accounting is applied. Market price sensitivity for derivatives to which cash flow hedge accounting is applied is shown in the sensitivity table for other comprehensive income. Sensitivity to market price fluctuations for all other open derivatives is shown in the sensitivity tables for profit before tax.

Sensitivity analysis for open commodity derivatives affecting profit before tax
In EUR mn
	2023		2022
	Market price +10%	Market price –10%	Market price +10%	Market price –10%
Oil incl. oil products	–4	4	4	–4
Oil incl. oil products – designated in a hedge relationship¹	3	–3	14	–14
Gas	–34	34	10	–10
Power	2	–2	13	–13
Other²	28	–28	43	–43
Total	–4	4	83	–83

¹Includes hedging instruments designated in a fair value hedge relationship related to product swaps with the national stockholding company in Germany. For further details see section Hedge Accounting of commodity hedges in Chemicals & Materials and Fuels & Feedstock.

²Includes derivatives for European Emission Allowances

Sensitivity analysis for open commodity derivatives affecting other comprehensive income before tax
In EUR mn
	2023		2022
	Market price +10%	Market price –10%	Market price +10%	Market price –10%
Oil incl. oil products	–34	34	–39	39
Gas	2	–2	5	–5
Power	31	–31	48	–48
Commodity hedges (designated in a hedge relationship)	–1	1	15	–15

For financial instruments, sensitivity analysis is performed for changes in foreign exchange rates of currencies material to the Group. On Group level, the EUR–RON sensitivity not only includes the net RON exposure versus the EUR but also the net RON exposure versus the USD, since the USD–RON exposure can be split into EUR–RON and EUR–USD exposure. The same is true for the EUR–NOK, EUR–SEK and EUR–NZD exposure.

Sensitivity analysis for financial instruments affecting profit before tax¹
In EUR mn
	2023		2022
	10% apprecia- tion of the EUR	10% deprecia- tion of the EUR	10% apprecia- tion of the EUR	10% deprecia- tion of the EUR
EUR–RON	–12	12	8	–8
EUR–USD	1	–1	8	–8
EUR–NZD	–6	6	–2	2
EUR–NOK	7	–7	23	–23
EUR–SEK	–4	4	–3	3

¹Refers only to financial instruments and is not the same as the Group’s overall foreign exchange rate sensitivity in terms of operating result.

Sensitivity analysis for financial instruments affecting other comprehensive income before tax¹
In EUR mn
	2023		2022
	10% apprecia- tion of the EUR	10% deprecia- tion of the EUR	10% apprecia- tion of the EUR	10% deprecia- tion of the EUR
EUR–USD	28	–28	43	–43
EUR–SEK	–12	12	–16	16

¹ Including sensitivity of the net investment hedge

OMV regularly analyzes the impact of interest rate changes on interest income and expenses from floating rate deposits and borrowings. Currently, the effects of changes in interest rates are not considered to be a material risk.

Credit risk management

The main counterparty credit risks are assessed and monitored at Group and segment level using predetermined criteria and limits for all counterparties, banks, and security providers. On the basis of a risk assessment, counterparties, banks, and security providers are assigned a credit limit, an internal risk class, and a specific limit validity. The risk assessments are reviewed annually as a minimum or on an ad hoc basis. The credit risk processes are governed by guidelines at OMV Group level stipulating the Group-wide minimum requirements. The main counterparties with contracts involving derivative financial instruments have investment grade credit ratings. OMV uses commercial trade insurance for parts of its receivables in some business areas to mitigate credit risk. Due to the high economic uncertainty resulting from the current geopolitical situation, special attention is paid to early warning signals like changes in payment behavior.
Credit risk is the risk that the OMV Group’s counterparties will not meet their obligation under a financial instrument or customer contract, leading to a financial loss.

Credit risk exists in relation to the financial guarantee contracts issued by Borealis to Bayport Polymers LLC and Borouge 4 LLC, which are accounted for using the equity method, where the maximum outstanding exposure for Borealis as of December 31, 2023 amounted to EUR 1,234 mn plus interest (2022: EUR 638 mn plus interest).
In 2023, Borealis AG granted a guarantee for the funding of Borouge 4 LLC under the Italian Export Credit Agency agreement. The total guarantee amounts to EUR 1,155 mn plus interest. Based on the already drawn financing by Borouge 4 LLC the guaranteed amount as of December31,2023 totaled EUR536mn plus interest.

The guarantee granted to Bayport Polymers LLC of EUR 588 mn plus interest (2022: EUR 623 mn plus interest) terminates earliest upon payment and/or termination of the obligation in 2027 and 2032, respectively and could be called at any time.
In addition, in 2023 Borealis granted a guarantee for a Revolving Credit Facility (RCF) used by Bayport Polymers LLC as a liquidity instrument to conduct its ordinary course of business. The maximum amount of the credit facility is EUR 90 mn plus interest. At year end, the RCF was fully utilized by Bayport Polymers LLC.
Furthermore, in 2022 Borealis provided a parental guarantee for a lease of railcars by Bayport Polymers LLC with maximum exposure of EUR 20 mn (2022: EUR 15 mn).
In general, a payment under the guarantee agreement is triggered by the non-performance by the guaranteed party of the obligation covered by the guarantee. Therefore, a financial liability initially measured at fair value was recognized.

Maximum credit exposure¹
In EUR mn
	2023	2022
Trade receivables	3,455	4,222
Investments	85	69
Bonds	285	52
Derivatives	942	3,247
Loans	910	711
Other sundry financial assets	1,612	1,850
Cash and cash equivalents	6,920	8,090
Financial guarantee contracts²	1,234	623
Total maximum credit exposure	15,442	18,862

¹Excluding items reclassified to held for sale

²Maximum exposure of financial guarantee contracts based on drawdowns of financing facilities as of December 31, 2023 exclude interest accrued.

31 Fair value hierarchy

Fair value hierarchy of financial assets¹ and net amount of assets and liabilities held for sale at fair value
In EUR mn
	Carrying amount			Fair value level
	Valued at amortized cost	Valued at fair value	Total	Level 1	Level 2	Level 3	Total

	2023
Trade receivables	3,356	99	3,455	—	99	—	99
Equity investments	—	57	57	—	34	23	57
Investment funds	—	28	28	28	—	—	28
Bonds	285	—	285	—	—	—	—
Derivatives designated and effective as hedging instruments	—	52	52	—	52	—	52
Other derivatives	—	890	890	0	890	—	890
Loans	910	—	910	—	—	—	—
Other sundry financial assets	1,610	2	1,612	—	—	2	2
Net amount of assets and liabilities associated with assets held for sale	n.a.	13	13	—	13	—	13
Total	6,160	1,141	7,301	28	1,088	25	1,141


	2022
Trade receivables	4,086	136	4,222	—	136	—	136
Equity investments	—	42	42	—	—	42	42
Investment funds	—	26	26	26	—	—	26
Bonds	52	—	52	—	—	—	—
Derivatives designated and effective as hedging instruments	—	380	380	—	380	—	380
Other derivatives	—	2,867	2,867	14	2,853	—	2,867
Loans	711	—	711	—	—	—	—
Other sundry financial assets	1,850	—	1,850	—	—	—	—
Net amount of assets and liabilities associated with assets held for sale	n.a.	882	882	—	58	824	882
Total	6,699	4,334	11,032	40	3,427	866	4,334

¹Excluding assets that were reclassified to held for sale

Fair value hierarchy of financial liabilities and other liabilities at fair value¹
In EUR mn
	Carrying amount			Fair value level
	Valued at amortized cost	Valued at fair value	Total	Level 1	Level 2	Level 3	Total

	2023
Trade payables	3,955	—	3,955	—	—	—	—
Bonds	6,073	—	6,073	—	—	—	—
Lease liabilities	1,585	—	1,585	—	—	—	—
Other interest-bearing debt	1,470	—	1,470	—	—	—	—
Liabilities on derivatives designated and effective as hedging instruments	—	67	67	—	67	—	67
Liabilities on other derivatives	—	469	469	37	432	—	469
Other sundry financial liabilities	1,204	—	1,204	—	—	—	—
Other liabilities at fair value²	—	28	28	—	28	—	28
Total	14,287	564	14,851	37	528	—	564


	2022
Trade payables	5,259	—	5,259	—	—	—	—
Bonds	7,320	—	7,320	—	—	—	—
Lease liabilities	1,476	—	1,476	—	—	—	—
Other interest-bearing debt	1,487	—	1,487	—	—	—	—
Liabilities on derivatives designated and effective as hedging instruments	—	44	44	—	44	—	44
Liabilities on other derivatives	—	1,571	1,571	0	1,571	—	1,571
Other sundry financial liabilities	1,047	—	1,047	—	—	—	—
Other liabilities at fair value²	—	132	132	—	132	—	132
Total	16,589	1,747	18,336	0	1,747	—	1,747

¹Excluding liabilities that were reclassified to held for sale

²Includes hedged items designated in a fair value hedge relationship related to product swaps with the national stockholding company in Germany. 2022 included additionally hedged items designated in a fair value hedge relationship related to product swaps with the national stockholding company in Slovakia.

Financial liabilities for which fair values are disclosed
In EUR mn
	Carrying amount	Fair value	Fair value level
			Level 1	Level 2	Level 3

	2023
Bonds	6,073	5,766	5,766	—	—
Other interest-bearing debt	1,470	1,349	—	1,349	—
Financial liabilities	7,543	7,115	5,766	1,349	—


	2022
Bonds	7,320	6,747	6,747	—	—
Other interest-bearing debt	1,487	1,320	—	1,320	—
Financial liabilities	8,807	8,067	6,747	1,320	—

The table above shows the carrying amount and fair value of financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information of other financial assets and liabilities measured at amortized costs, as the carrying amount represents an adequate approximation to the fair value.

32 Offsetting of financial assets and financial liabilities

Financial assets and financial liabilities are offset only when the Group has a current and legally enforceable right to set off the recognized amounts and when there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.
OMV enters in the normal course of business into various master netting arrangements in the form of International Swaps and Derivatives Association (ISDA) agreements, European Federation of Energy Traders (EFET) agreements or other similar arrangements.

The tables below show the carrying amounts of recognized financial assets and financial liabilities that are subject to various netting arrangements. The net column would be in the Group’s statement of financial position, if all set-off rights were exercised.

Offsetting of financial assets
In EUR mn
	Note	Financial instruments (gross)	Amounts set off in the statement of financial position	Financial instruments in the statement of financial position (net)	Liabilities with right of set-off (not offset)	Net

		2023
Derivative financial instruments	20	3,359	–2,417	942	–122	820
Trade receivables	20	4,535	–1,081	3,455	–65	3,390
Other sundry financial assets	20	1,626	–13	1,612	–1	1,611
Total		9,520	–3,511	6,009	–187	5,822


		2022
Derivative financial instruments		13,466	–10,219	3,247	–547	2,700
Trade receivables		6,086	–1,864	4,222	–106	4,116
Other sundry financial assets		1,892	–42	1,850	–1	1,849
Total		21,444	–12,125	9,318	–654	8,664

Offsetting of financial liabilities
In EUR mn
	Note	Financial instruments (gross)	Amounts set off in the statement of financial position	Financial instruments in the statement of financial position (net)	Assets with right of set-off (not offset)	Net

		2023
Derivative financial instruments	26	2,953	–2,417	536	–122	415
Trade payables	26	5,035	–1,081	3,955	–65	3,890
Other sundry financial liabilities	26	1,217	–13	1,204	–1	1,203
Total		9,206	–3,511	5,695	–187	5,508


		2022
Derivative financial instruments		11,835	–10,219	1,615	–547	1,068
Trade payables		7,123	–1,864	5,259	–106	5,153
Other sundry financial liabilities		1,089	–42	1,047	–1	1,046
Total		20,046	–12,125	7,921	–654	7,267

33 Result on financial instruments

Result on financial instruments
In EUR mn
	Amount	Financial instruments at fair value through profit or loss	Equity instruments designated as measured at fair value through other comprehensive income	Financial assets at amortized cost	Financial liabilities at amortized cost

	2023
Fair value changes of financial assets and derivatives	111	111	—	—	—
Net impairment losses on financial assets	–38	—	—	–38	—
Result on financial instruments within operating result	73	111	—	–38	—

Dividend income	10	—	4	—	—
Interest income	473	—	—	473	—
Interest expenses	–415	–3	—	—	–148
Fair value changes of financial instruments	–21	–21	—	—	—
Fair value changes of FX derivatives	–191	–191	—	—	—
Financial charges for factoring and securitization	–77	–77	—	—	—
Impairments of financial instruments, net	–5	—	—	–2	—
Other	–6	–0	–1	0	–5
Result on financial instruments within financial result	–232	–292	3	471	–153


	2022
Fair value changes of financial assets and derivatives	1,029	1,029	—	—	—
Net impairment losses on financial assets	–43	—	—	–43	—
Result on financial instruments within operating result	986	1,029	—	–43	—

Dividend income	11	—	11	—	—
Interest income	269	—	—	269	—
Interest expenses	–417	–4	—	—	–161
Fair value changes of financial instruments	–374	–374	—	—	—
Fair value changes of FX derivatives	–186	–186	—	—	—
Financial charges for factoring and securitization	–46	–46	—	—	—
Impairments of financial instruments, net	–1,007	—	—	–1,007	—
Other	–12	0	—	0	–12
Result on financial instruments within financial result	–1,761	–609	11	–739	–173

The interest expenses not allocated mainly referred to the unwinding of provisions. For further details see Note 12 – Net financial result.

34 Share-based payments

Long Term Incentive (LTI) plans

LTI plans with similar conditions are granted annually to the Executive Board and selected Senior Managers in the Group. On the vesting date, shares will be granted to the participants. The number of bonus shares is determined depending on the achievement of defined performance criteria. The performance criteria and their corresponding typical weightings for the Executive Board members are defined in the Remuneration Policy and as of 2022 are as follows: Relative Total Shareholder Return (30%), Clean CCS (Current Cost of Supply) ROACE (40%), ESG targets (30%). Based on predefined criteria (e.g., fatalities, Total Recordable Injury Rate (TRIR), process safety – also in comparison to industry benchmarks), a Health & Safety Malus of between 0.8 and 1.0 is applied to the overall target achievement for Executive Board members. In case of severe incidents, the Remuneration Committee may reduce the payout to zero. For Senior Managers, as of 2022, the following performance criteria apply: Relative Total Shareholder Return (30%), Free Cash Flow (35%), and ESG targets/Transformation targets (35%). The defined performance criteria may not be amended during the performance period of the LTI plans. However – in order to maintain the incentivizing character of the program –the responsible governing body for Senior Managers has the discretion to adjust the threshold/target/maximum levels of the Free Cash Flow, in case of material changes in external factors such as oil and gas prices. The adjustment can be made in both directions.
Disbursement is made in cash or in shares. Since 2022, the OMV Petrom LTI plan payment has been made in shares only. Executive Board members and Senior Managers as active participants of the plans are required to build up an appropriate volume of shares and to hold those shares until retirement or departure from the company. For Senior Managers, if the eligibility of the LTI plan lapses but they are still in active employment with the company, the shareholding requirement expires when the last LTI plan is paid out. The shareholding requirement is defined as a percentage of the annual gross base salary, for the Executive Board, and as a percentage of the respective Target Long-Term Incentive for Senior Managers. Executive Board members have to fulfill the shareholding requirement within five years after the initial respective appointment. Until fulfillment of the shareholding requirement, disbursement takes the form of shares whilst thereafter the plan participants can decide between cash or share settlement. As long as the shareholding requirements are not fulfilled the granted shares after deduction of taxes are transferred to a trustee deposit, managed by the Company.
For payments in shares the grant date fair values are spread as expenses over the three years performance period with a corresponding increase in shareholders’ equity. In the case of assumed cash-settlements a provision is made for the expected future costs of the LTI plans on the statement of financial position date based on fair values.

Long-Term Incentive Plans

	2023 plan	2022 plan	2021 plan	2020 plan
Start of plan	01/01/2023	01/01/2022	01/01/2021	01/01/2020
End of performance period	12/31/2025	12/31/2024	12/31/2023	12/31/2022
Vesting date	03/31/2026	03/31/2025	03/31/2024	03/31/2023
Shareholding requirement
Executive Board Chairman	200% of annual gross base salary	200% of annual gross base salary	200% of annual gross base salary	200% of annual gross base salary
Executive Board Deputy Chairman	175% of annual gross base salary	175% of annual gross base salary	175% of annual gross base salary	175% of annual gross base salary
Other Executive Board members	150% of annual gross base salary	150% of annual gross base salary	150% of annual gross base salary	150% of annual gross base salary
Senior Managers	75% of the respective Target Long- Term Incentive	75% of the respective Target Long- Term Incentive	75% of the respective Target Long- Term Incentive	75% of the respective Target Long- Term Incentive
Expected shares as of December 31, 2023	357,842	287,735	501,677	—
Maximum shares as of December 31, 2023	761,728	674,776	794,894	—
Fair value of plan (in EUR mn) as of December 31, 2023¹	14	11	20	—
Provision (in EUR mn) as of December 31, 2023¹	3	5	16	—

¹ Excluding incidental wage costs

Equity Deferral

The Equity Deferral serves as a long-term compensation instrument for the members of the Executive Board that promotes retention and shareholder alignment in OMV. It combines the interests of management and shareholders via a long-term investment in restricted shares. The holding period of the Equity Deferral is three years from vesting. The plan also seeks to prevent inadequate risk-taking.
The performance criteria and their typical weightings for the Executive Board are defined in the Remuneration Policy and are as follows: Reported Net Income (40%), Free Cash Flow (30%), Operational target (15%), and ESG target (15%). Based on predefined criteria (e.g., fatalities, TRIR, and process safety – also in comparison to industry benchmarks), a Health & Safety Malus of between 0.8 and 1.0 is applied to overall target achievement. In case of severe incidents, the Remuneration Committee may reduce the payout to zero.
The Annual Bonus is capped at 180% of the target Annual Bonus. A minimum of one-third of the Annual Bonus is granted in shares. The determined bonus achievement is settled on March 31 following the end of the period whereby at the statement of financial position date the target achievements and the share price is estimated (the latter on the basis of market quotes).
Given the volatility of commodity prices and market conditions inherent to the industry, the variable remuneration plans give the Remuneration Committee the authority (in line with general practices in the Oil and Gas industry) to adjust the threshold, target, and maximum levels of the financial targets based on oil/gas prices and EUR/USD exchange rates compared with assumptions at the time the targets were set. Adjustments can be applied in both directions. They are determined by the Remuneration Committee and published in the Remuneration Report. The granted shares after deduction of taxes are transferred to a trustee deposit, managed by the Company, to be held for three years.
In 2023, expenses amounting to EUR 3 mn were recorded with a corresponding increase in equity (2022: EUR 3 mn).

Personal investment held in shares¹

	12/31/2023
Active Executive Board members
Stern	24,434
Florey	49,930
van Koten	4,385
Former Executive Board members
Pleininger²	14,933
Skvortsova³	6,636
Seele⁴	12,190
Gangl⁵	16,680
Total — Executive Board	129,188
Other Senior Managers	255,539
Total personal investment	384,727

¹Personal investment held in shares refer to open LTI plans and Equity Deferral if shares are held in the OMV trustee deposit.

²Johann Pleininger resigned from the Executive Board effective December 31, 2022.

³Elena Skvortsova resigned from the Executive Board effective October 31, 2022.

⁴ Rainer Seele resigned from the Executive Board effective August 31, 2021.

⁵ Thomas Gangl took part in the LTIP 2020 as an Executive Board member. In 2021, he took part as both Executive Board member and Senior Manager. He resigned from the Executive Board effective March 31, 2021.

Total Expenses

In 2021, Borealis implemented a transitional LTI plan for 2021 and 2022 in order to bridge the cash gaps that arise from migrating to the new three-year plan. Transitional LTI plan allowances for 2021 and 2022 are based on the same KPIs as for the three-year LTI plan but measured on an annual basis and are settled in cash. Expenses related to all share-based payment transactions are summarized in the table below.

Expenses related to share-based payment transactions¹
In EUR mn
	2023	2022
Cash settled	6	15
Equity settled	6	7
Total expenses arising from share based payment transactions	12	22

¹Excluding incidental wage costs

Other Information

35 Average number of employees

Average number of employees¹

	2023	2022
OMV Group excluding OMV Petrom Group and Borealis Group	6,724	6,664
OMV Petrom Group	7,711	7,837
Borealis Group	6,859	7,833
OMV Group	21,295	22,334

¹ Calculated as the average of the number of employees at month-end during the year

The decrease in the number of employees for the Borealis Group was mainly impacted by the sale of the nitrogen business unit in July 2023.

36 Expenses Group auditor

Expenses for services rendered by the Group auditor (including the international network within the meaning of section 271b UGB) comprised the following:

Expenses for services rendered by the Group auditor (including the international network)
In EUR mn
	2023		2022
	Group auditor	thereof KPMG Austria GmbH Wirtschafts- prüfungs- und Steuerberatungs- gesellschaft	Group auditor¹	thereof Ernst & Young Wirtschafts- prüfungsgesell- schaft m.b.H
Audit of Group accounts and year-end audit	5.40	2.38	3.47	1.58
Other assurance services	0.84	0.74	0.60	0.48
Tax advisory services	2.50	—	0.19	—
Other services	0.74	0.00	0.40	0.01
Total	9.48	3.12	4.65	2.07

¹ Borealis Group was audited by PwC Wirtschaftsprüfung GmbH, therefore not included in the expenses 2022.

37 Related parties

Under IAS 24, details of relationships with related parties and related enterprises not included in consolidation must be disclosed. Enterprises and individuals are considered to be related if one party is able to control or exercise significant influence over the business of the other. Österreichische Beteiligungs AG (ÖBAG), Vienna, holds an interest of 31.5% and Mubadala Petroleum and Petrochemicals Holding Company L.L.C., (MPPH), Abu Dhabi, holds an interest of 24.9% in OMV Aktiengesellschaft; both are related parties under IAS 24.
In 2023 and 2022, there were the following arm’s-length supplies of goods and services (including the granting of licenses for the use of technologies belonging to the Group) between the Group and equity-accounted companies, excluding past gas purchases from OJSC Severneftegazprom, which were not based on market prices but on cost plus defined margin.

Transactions with equity-accounted investments – Sales and trade receivables
In EUR mn
	2023		2022
	Sales and other income	Trade receivables	Sales and other income	Trade receivables
Abu Dhabi Oil Refining Company	1	1	2	2
ADNOC Global Trading LTD	4	0	3	1
Bayport Polymers LLC	6	3	8	3
Borouge investments¹	519	106	677	151
Borouge 4 LLC	6	2	—	—
Recelerate GmbH	3	0	—	—
EEX CEGH Gas Exchange Services GmbH	1	0	1	0
Erdöl-Lagergesellschaft m.b.H.	148	—	119	59
GENOL Gesellschaft m.b.H.	138	22	141	22
Kilpilahden Voimalaitos Oy	4	0	8	0
Société d'Intérêt Collectif Agricole Laignes Agrifluides (SICA Laignes Agrifluides)²	1	—	5	—
Total	833	135	963	237

¹ Including Borouge PLC and Borouge Pte. Ltd in 2023 as well as Abu Dhabi Polymers Company Limited (Borouge) in 2022. For more details, see Note 18 – Equity-accounted investments.

² Deconsolidated on July 5, 2023, as part of the Borealis nitrogen business unit sale. For further information, please refer to Note 4 – Changes in Group structure.

Additional sales transactions in the amount of EUR 51 mn took place with Erdöl-Lagergesellschaft m.b.H., which are not disclosed in the above table as netting with expenses was applied in the income statement.

Transactions with equity-accounted investments – Purchases and trade payables
In EUR mn
	2023		2022
	Purchases and services received	Trade payables	Purchases and services received	Trade payables
ADNOC Global Trading LTD	—	—	32	—
Bayport Polymers LLC	1	—	—	0
Borouge investments¹	377	91	416	88
Recelerate GmbH	3	0	—	—
Chemiepark Linz Betriebsfeuerwehr GmbH²	2	—	3	0
Deutsche Transalpine Oelleitung GmbH	30	3	48	7
EPS Ethylen-Pipeline-Süd GmbH & Co KG	3	—	3	—
Erdöl-Lagergesellschaft m.b.H.	60	28	208	27
GENOL Gesellschaft m.b.H.	11	1	10	2
Kilpilahden Voimalaitos Oy	99	0	116	—
Neochim AD²	—	—	5	—
OJSC Severneftegazprom³	—	—	24	—
PetroPort Holding AB	4	0	4	0
Società Italiana per l'Oleodotto Transalpino S.p.A.	4	0	2	0
Salzburg Fuelling GmbH	2	0	—	—
Total	596	125	873	124

¹Including Borouge PLC and Borouge Pte. Ltd in 2023 and Abu Dhabi Polymers Company Limited (Borouge) in 2022. For more details, see Note 18 – Equity-accounted investments.

² Deconsolidated on July 5, 2023, as part of the Borealis nitrogen business unit sale. For further information, please refer to Note 4 – Changes in Group structure.

³OJSC Severneftegazprom was deconsolidated on March 1, 2022, and reclassified to other investments at fair value through profit or loss (FVTPL).

Dividends distributed from equity-accounted investments
In EUR mn
	2023	2022
Abu Dhabi Oil Refining Company	206	116
Abu Dhabi Petroleum Investments LLC	23	5
ADNOC Global Trading LTD	96	43
Borouge investments¹	455	592
Deutsche Transalpine Oelleitung GmbH	1	1
EEX CEGH Gas Exchange Services GmbH	1	1
GENOL Gesellschaft m.b.H.	1	0
Neochim AD²	1	1
Pearl Petroleum Company Limited	—	41
Società Italiana per l'Oleodotto Transalpino S.p.A.	1	1
Transalpine Ölleitung in Österreich Gesellschaft m.b.H.	1	1
Dividend distributed from equity-accounted investments	787	803

¹ Including Borouge PLC and Borouge Pte. Ltd in 2023 and Abu Dhabi Polymers Company Limited (Borouge) in 2022. For more details, see Note 18 – Equity-accounted investments.

² Deconsolidated on July 5, 2023, as part of the Borealis nitrogen business unit sale. For further information, please refer to Note 4 – Changes in Group structure

Other balances with equity-accounted investments
In EUR mn
	2023	2022
Kilpilahden Voimalaitos Oy	52	40
Bayport Polymers LLC	701	657
Borouge 4 LLC	155	—
Loan receivables	909	697
Bayport Polymers LLC	24	29
Freya Bunde-Etzel GmbH & Co. KG	8	8
C2PAT GmbH	1	—
Other financial receivables	33	37
Borouge investments¹	8	8
Contract assets	8	8
Kilpilahden Voimalaitos Oy	11	11
Renasci N.V.	—	10
Advance payments	11	21
C2PAT GmbH & Co KG²	—	1
Bayport Polymers LLC	91	28
Borouge 4 LLC	1	—
Other financial liabilities	92	29
Erdöl-Lagergesellschaft m.b.H.	79	100
Contract liabilities	79	100
Erdöl-Lagergesellschaft m.b.H.	—	27
Other non-financial liabilities	—	27

¹ Including Borouge PLC and Borouge Pte. Ltd in 2023 and Abu Dhabi Polymers Company Limited (Borouge) in 2022. For more details, see Note 18 – Equity-accounted investments.

² Entity was deconsolidated on December 31, 2023. For more details, see Note 40 – Direct and indirect Investments of OMV Aktiengesellschaft.

As of December 31, 2023, undrawn financial commitments to Borouge 4 LLC totaling EUR 818 mn originated from a shareholder loan agreement (SHL) entered into on February 3, 2023, with Borealis AG as the lender and Borouge 4 LLC as the borrower to part finance the Borouge 4 CAPEX requirements of Borouge 4 LLC. EUR 148 mn out of the total EUR 967 mn commitment was drawn in 2023. The SHL is structured as a facility with a five-year tenor. Borealis retains the right to accelerate the repayment of the outstanding amounts at the point of reintegration into Borouge PLC. Furthermore, Borealis AG granted a guarantee for the funding of Borouge 4 LLC under the Italian Export Credit Agency agreement. The total guarantee amounts to EUR 1,155 mn plus interest. Based on the already drawn financing by Borouge 4 LLC, the guaranteed amount as of December 31, 2023 totaled EUR 536 mn plus interest.
Furthermore, Borealis granted a guarantee for a Revolving Credit Facility (RCF) used by Bayport Polymers LLC as a liquidity instrument to conduct its ordinary course of business, which was fully utilized at year-end. The maximum amount of the credit facility is EUR 181 mn plus interest, of which 50% (EUR 90 mn plus interest) is guaranteed by Borealis, while the remaining EUR 90 mn plus interest is guaranteed by the joint venture partner TotalEnergies.
In 2022, Bayport Polymers LLC repaid a loan to the Group, which was fully financed by two tranches of senior notes. Borealis provided a parental guarantee to Bayport Polymers LLC of EUR 588 mn plus interest for the full amount of the senior notes. Additionally, in 2022 Borealis provided a parental guarantee for the lease of railcars by Bayport Polymers LLC with a maximum exposure of EUR 20 mn (2022: EUR 15 mn).
Due to additional loan drawings, no undrawn financing commitments to Bayport Polymers LLC (December 31, 2022: EUR 46 mn) and Kilpilahden Voimalaitos Oy (December 31, 2022: EUR 10 mn) were reported as of December 31, 2023.

In 2023, a capital contribution to Bayport Polymers LLC amounting to EUR 92 mn was granted, of which EUR 68 mn was unpaid as of December 31, 2023, and shown as other financial liabilities.

The contract liabilities towards Erdöl-Lagergesellschaft m.b.H. are related to a long-term contract for rendering of services. In Q1/23, a non-financial liability toward Erdöl-Lagergesellschaft m.b.H. in the amount of EUR 27 mn was settled via returning goods.

Government-related entities

Based on the OMV ownership structure, the Republic of Austria has an indirect relationship with OMV via ÖBAG and is therefore, together with companies under the control of the Republic of Austria, considered a related party. In its normal course of business, OMV has arm’s length transactions mainly with Österreichische Post Aktiengesellschaft, VERBUND AG, Österreichische Bundesbahnen-Holding Aktiengesellschaft, Bundesbeschaffung GmbH, and their subsidiaries.

Via MPPH, OMV has an indirect relationship with the Emirate of Abu Dhabi, which, together with the companies under the control of Abu Dhabi, is also considered a related party. In 2023, there were supplies of goods and services, for instance to Compañía Española Distribuidora de Petróleos, S.A. (CEPSA), Abu Dhabi Company for Offshore Petroleum Operations Ltd, NOVA Chemicals Corporation (NOVA), and Abu Dhabi National Oil Company (ADNOC). Furthermore, OMV cooperates with ADNOC in several Exploration & Production arrangements and closed strategic equity partnerships with ADNOC, covering both the ADNOC Refining business and a Trading joint venture.

Key management personnel compensation

Remuneration received by active members of the Executive Board as of December 31, 2023
In EUR mn
	2023
	Stern	Florey	Gaso⁴	van Koten	Vlad⁸	Total
Short-term benefits	2.16	1.83	1.24	1.31	0.86	7.39
Fixed (base salary)	0.99	0.81	0.50	0.58	0.53	3.41
Fixed (one-off payment)	—	—	0.63⁵	—	0.26⁹	0.89
Variable (cash bonus)¹	1.16	0.97	—	0.70	—	2.83
Benefits in kind²	0.01	0.05³	0.11⁶	0.03⁷	0.07¹⁰	0.26
Post-employment benefits	0.25	0.20	0.13	0.14	0.13	0.86
Pension fund contributions	0.25	0.20	0.13	0.14	0.13	0.86
Share-based benefits	0.68	1.04	—	0.31	—	2.04
Variable (Equity Deferral 2022)	0.68	0.57	—	0.31	—	1.56
Variable (LTIP 2020)	—	0.48	—	—	—	0.48
Remuneration received by the Executive Board	3.09	3.07	1.37	1.76	0.99	10.28

¹ The variable components relate to target achievement in 2022, for which bonuses were paid in 2023.

²Including cash payments for allowances

³Including schooling costs and related taxes

⁴Berislav Gaso joined the Executive Board on March 1, 2023.

⁵Berislav Gaso received a compensation payment for forfeited remuneration in the 2023 financial year in settlement of the variable remuneration that was demonstrably forfeited due to the transfer from the MOL Group to OMV Aktiengesellschaft.

⁶Including relocation, rental costs, and related taxes

⁷Including car allowances

⁸Daniela Vlad joined the Executive Board on February 1, 2023.

⁹Daniela Vlad received a compensation payment for forfeited remuneration in the 2023 financial year in settlement of the variable remuneration that was demonstrably forfeited due to the transfer from AkzoNobel N.V. to OMV Aktiengesellschaft.

¹⁰Including relocation, rental costs, and related taxes

Remuneration received by former members of the Executive Board as of December 31, 2023
In EUR mn
	2023
	Pleininger³	Skvortsova⁵	Seele⁷	Gangl⁸	Total
Short-term benefits	1.52	1.04	0.72	—	3.28
Fixed (base salary)	0.25	0.26	—	—	0.51
Fixed (one-off payment)	0.27⁴	—	—	—	0.27
Variable (cash bonus)¹	1.00	0.70	0.72	—	2.42
Benefits in kind²	0.00	0.08⁶	—	—	0.08
Post-employment benefits	0.12	0.07	—	—	0.19
Pension fund contributions	0.12	0.07	—	—	0.19
Share-based benefits	1.26	0.55	2.16	0.44	4.40
Variable (Equity Deferral 2022)	0.65	0.31	0.32	—	1.27
Variable (LTIP 2020)	0.61	0.24	1.84	0.44	3.13
Remuneration received by former Executive Board members	2.90	1.66	2.88	0.44	7.87

¹The variable components relate to target achievement in 2022, for which bonuses were paid in 2023.

²Including cash payments for allowances

³Johann Pleininger resigned from the Executive Board effective December 31, 2022 and his contract ended on April 30, 2023.

⁴Johann Pleininger received compensation for the shortened phase-out period for the period from May 1 until August 31, 2023.

⁵Elena Skvortsova resigned from the Executive Board effective October 31, 2022 and her contract ended on June 14, 2023.

⁶Including rental, advisory costs, and related taxes

⁷Rainer Seele resigned from the Executive Board effective August 31, 2021 and his contract ended on June 30, 2022.

⁸Thomas Gangl resigned from the Executive Board effective March 31, 2021.

Remuneration received by the Executive Board
In EUR mn
	2022
	active members of the Executive Board as of December 31, 2022				former members of the Executive Board
	Stern	Pleininger²	Florey	van Koten	Skvortsova⁴	Seele⁶	Gangl⁷	Leitner⁹	Total
Short-term benefits	1.59	1.47	1.55	0.85	1.16	1.57	0.12	—	8.32
Fixed (base salary)	0.99	0.75	0.81	0.58	0.58	0.55	—	—	4.25
Variable (cash bonus)¹	0.59	0.71	0.69	0.25	0.50	1.02	0.12	—	3.87
Benefits in kind	0.01	0.01	0.05³	0.03	0.09⁵	0.01	—	—	0.20
Post-employment benefits	0.25	0.19	0.20	0.14	0.14	0.14	—	—	1.06
Pension fund contributions	0.25	0.19	0.20	0.14	0.14	0.14	—	—	1.06
Share-based benefits	0.29	1.33	1.03	0.10	0.21	3.13	0.37	0.70	7.16
Variable (Equity Deferral 2021)	0.29	0.44	0.34	0.10	0.21	0.43	0.05	—	1.85
Variable (LTIP 2019)	—	0.90	0.70	—	—	2.70	0.32⁸	0.70	5.31
Remuneration received by the Executive Board	2.12	3.00	2.78	1.10	1.51	4.84	0.49	0.70	16.54

¹The variable components relate to target achievement in 2021, for which bonuses were paid in 2022.

²Johann Pleininger resigned from the Executive Board effective December 31, 2022 and his contract ended on April 30, 2023.

³Including schooling costs and related taxes

⁴Elena Skvortsova resigned from the Executive Board effective October 31, 2022 and her contract ended on June 14, 2023.

⁵Including rental, storage costs, and related taxes

⁶Rainer Seele resigned from the Executive Board effective August 31, 2021 and his contract ended on June 30, 2022.

⁷Thomas Gangl resigned from the Executive Board effective March 31, 2021.

⁸Thomas Gangl received additionally a cash payment in the amount of EUR 0.08 mn based on the Senior Manager LTIP 2019.

⁹Manfred Leitner resigned from the Executive Board effective June 30, 2019.

Remuneration received by top executives (excl. Executive Board)¹
In EUR mn
	2023	2022
Salaries and bonuses	28.5	25.1
Pension fund contributions	1.5	1.4
Other post-employment benefits including termination benefits	2.5	1.1
Share-based benefits	6.4	5.8
Other long-term benefits	0.1	1.2
Remuneration received by top executives (excl. Executive Board)²	39.0	34.6

¹ In 2023, there were on average 51 top executives (2022: 47) based on the months of service in the Group.

² 2022 included remuneration of Martijn van Koten for his previous function as Executive Board member of the Borealis Group

The members of the Executive Board and the members of the Supervisory Board are covered by directors and officers liability insurance (D&O) and criminal legal expenses insurance. A large number of other OMV employees also benefit from these two forms of insurance, and the insurers levy lump-sum premiums, which are not specifically attributed to the Board members.

See Note 34 – Share-based payments for details on Long-Term Incentive Plans and Equity Deferral.
In 2023, remuneration expenses for the Supervisory Board amounted to EUR 1.0 mn (2022: EUR 1.1 mn).

38 Unconsolidated structured entities

OMV sells trade receivables in a securitization program to Carnuntum DAC, based in Dublin, Ireland. Although OMV continues to service the receivables, OMV does not control Carnuntum Ltd. OMV performs the collection of the receivables strictly according to the defined Credit & Collection Policy and any decisions related to overdue receivables may only be taken by the Purchaser. In 2023, OMV transferred trade receivables amounting to EUR 6,032 mn to Carnuntum DAC (2022: EUR 5,746 mn).

As of December 31, 2023, OMV held seller participation notes amounting to EUR 137 mn (2022: EUR 168 mn) and complementary notes amounting to EUR 108 mn (2022: EUR 105 mn) in Carnuntum DAC shown in other financial assets. As of December 31, 2023, the maximum exposure to loss from the securitization program was EUR 187 mn (2022: EUR 196 mn).

The seller participation notes are senior to a loss reserve and third-party investor participation. The complementary notes are senior to seller participation notes and are of the same seniority as the senior notes issued by the program. The risk retained by the OMV Group is insignificant and therefore the trade receivables sold are derecognized in their entirety. The receivables are sold at their nominal amount less a discount. The discount was recognized in profit or loss and amounted in total to EUR 53 mn in 2023 (2022: EUR 37 mn). Interest income on the notes held in Carnuntum DAC amounted to EUR 12 mn in 2023 (2022: EUR 5 mn). In addition, OMV received a service fee for the debtor management services provided for the receivables sold.

39 Subsequent events

On January 31, 2024, following a competitive bidding process, OMV signed an agreement to divest its 50% shareholding in Malaysia’s SapuraOMV Upstream Sdn. Bhd. to TotalEnergies Holdings SAS for an overall cash consideration of USD 903 mn. This amount includes the full repayment of the outstanding USD 350 mn shareholder loan granted by OMV to SapuraOMV, as well as net working capital and other elements, with the consideration being subject to closing adjustments (Economic Effective Date December 31, 2022). The divestment is anticipated to close around the end of the first half of 2024, and will be subject to regulatory approvals in particular. The remaining 50% interest is held by SapuraEnergy.

40 Direct and indirect investments of OMV Aktiengesellschaft

Changes in the consolidated group

Name of company	Registered Office	Type of Change¹	Effective date
Chemicals & Materials
Rosier France S.A.S.	Arras	Deconsolidation	January 2, 2023
Rosier Nederland B.V.	Sas van Gent	Deconsolidation	January 2, 2023
Rosier S.A.	Moustier	Deconsolidation	January 2, 2023
BlueAlp Holding B.V.²	Groot-Ammers	First consolidation (S)	January 11, 2023
Renasci Oostende Holding N.V.	Ostend	First consolidation (S)	January 11, 2023
Renasci Oostende Recycling N.V.	Ostend	First consolidation (S)	January 11, 2023
Renasci Oostende SCP N.V.	Ostend	First consolidation (S)	January 11, 2023
Renasci N.V.	Ostend	Increase in shares³	January 11, 2023
Petrogas International B.V.²	Eindhoven	First consolidation (S)	January 11, 2023
Borealis Agrolinz Melamine Deutschland GmbH	Wittenberg	Deconsolidation	July 5, 2023
Borealis Agrolinz Melamine GmbH	Linz	Deconsolidation	July 5, 2023
Borealis Chimie S.A.S.	Courbevoie	Deconsolidation	July 5, 2023
Borealis L.A.T doo, Beograd	Belgrade	Deconsolidation	July 5, 2023
Borealis L.A.T France S.A.S.	Courbevoie	Deconsolidation	July 5, 2023
Borealis L.A.T GmbH	Linz	Deconsolidation	July 5, 2023
Borealis Produits et Engrais Chimiques du Rhin S.A.S.	Ottmarsheim	Deconsolidation	July 5, 2023
Feboran EOOD	Sofia	Deconsolidation	July 5, 2023
Neochim AD²	Dimitrovgrad	Deconsolidation	July 5, 2023
Kilpilahden Voimalaitos Oy²	Porvoo	First consolidation (I)	September 30, 2023
Circular Feedstock Walldürn GmbH	Walldürn	First consolidation (A)	October 6, 2023
Rialti S.p.A.	Taino	First consolidation (A)	October 31, 2023

Fuels & Feedstock
OMV Renewable Fuels & Feedstock B.V.	Beveren	First consolidation	April 20, 2023
Avanti Deutschland GmbH	Berchtesgaden	Deconsolidation	May 31, 2023
OMV Switzerland Holding AG	Zug	Deconsolidation (I)	June 30, 2023
OMV SLOVENIJA trgovina z nafto in naftnimi derivati, d.o.o.	Koper	Deconsolidation	June 30, 2023

Energy
Preussag Energie International GmbH	Burghausen	Deconsolidation (I)	June 30, 2023
POSEIDON EXL 005 ANS⁴	Lysaker	First consolidation	July 17, 2023
Deeep Tiefengeothermie GmbH⁴	Vienna	First consolidation	October 20, 2023

Assigned to multiple segments
C2PAT GmbH & Co KG²	Vienna	Deconsolidation (M)	December 31, 2023

¹“First consolidation” refers to newly formed companies, “First consolidation (A)” indicates the acquisition of a company, “First consolidation (S)” refers to companies included in the consolidation scope due to change in ownership of the parent company, and companies marked with “First consolidation (I)” have been included in the consolidation after originally not being consolidated due to immateriality. “Deconsolidation” refers to companies that have been excluded from the Group investments following a sale, “Deconsolidation (I)” refers to companies that were deconsolidated due to immateriality while “Deconsolidation (M)” refers to companies that were deconsolidated following a merger into another Group company.

²Company (previously) consolidated at-equity

³Interest in Renasci N.V. increased from 27.42% to 50.01% which led to the change in the consolidation method from at-equity to full consolidation, and then further to 98.56%. This also led to the addition of multiple entities to the consolidated group, these entities are marked with “First consolidation (S)” in the table. For further details please refer to the paragraph below.

⁴POSEIDON EXL 005 ANS and Deeep Tiefengeothermie GmbH have been included in the consolidated Group as a joint operations and are accounted for accordingly.

On January 11, 2023, Borealis further increased its stake in Renasci N.V. (Renasci) from 27.42% to 50.01%. Following the step acquisition, Borealis has the majority of shares, all with the same rights. Borealis obtained power and control of Renasci due to the fact that the relevant activities are directed by voting rights and that the veto rights are protective rights according to IFRS 10. As a result, Borealis obtained control of Renasci in line with IFRS 10, which led to the discontinuation of the use of the equity method according to IAS 28 and the application of the rules for business combination according to IFRS 3. On November 30, 2023, Borealis acquired an additional stake of 48.55% of the shares in Renasci, leading to a total shareholding of 98.56%.
For further information on major disposals refer to Note 4 – Changes in Group structure.

Number of consolidated companies

	2023			2022
	Full consolidation	Equity consolidation	Joint operation¹	Full consolidation	Equity consolidation	Joint operation¹
January 1	123	23	4	136	22	—
Included for the first time	6	3	2	5	3	4
Change in consolidation type	1	–1	—	—	—	—
Deconsolidated during the year	–15	–2	—	–18	–2	—
December 31	115	23	6	123	23	4
thereof domiciled and operating abroad	82	18	5	88	17	4
thereof domiciled in Austria and operating abroad	10	—	—	10	—	—

¹ Accounting for OMV’s share of assets, obligations for liabilities, share of income and expenses

List of investments

List of subsidiaries, equity-accounted investments, and other investments of OMV Aktiengesellschaft with an interest of at least 20%

	Parent company	Type of consoli- dation¹	Equity interest in % as of December 31, 2023	Equity interest in % as of December 31, 2022
Chemicals & Materials
AGRIPRODUITS S.A.S., Courbevoie (BAGRFR)	BCHIFR	NC	—	100.00
AZOLOR S.A.S., Bras-sur-Meuse	BCHIFR	NC-I	—	34.00
Bayport Polymers LLC, Pasadena²	BNOVUS	AEJ	50.00	50.00
BlueAlp Holding B.V., Groot-Ammers	BRENBE	AEA	21.25
Borealis AB, Stenungsund (BABSWE)	BSVSWE	C	100.00	100.00
Borealis AG, Vienna (BORAAG)	BHOLAT	C	39.00	39.00
	OMVRM		32.67	32.67
	OMV AG		3.33	3.33
Borealis Agrolinz Melamine Deutschland GmbH, Wittenberg	BORAAG	C	—	100.00
Borealis Agrolinz Melamine GmbH, Linz (BAGMAT)	BORAAG	C	—	100.00
Borealis Antwerpen N.V., Zwijndrecht	BPOBE	C	—	90.00
	BORAAG		100.00	10.00
Borealis Argentina SRL, Buenos Aires	BORAAG	NC	98.00	98.00
	BSVSWE		2.00	2.00
BOREALIS ASIA LIMITED, Hong Kong	BORAAG	NC	100.00	100.00
Borealis BoNo Holdings LLC, Houston (BBNHUS)²	BUS	C	100.00	100.00
Borealis Brasil S.A., Itatiba	BORAAG	C	80.00	80.00
BOREALIS CHEMICALS ZA (PTY) LTD, Germiston	BORAAG	NC	100.00	100.00
Borealis Chile SpA, Santiago	BORAAG	NC	100.00	100.00
Borealis Chimie S.A.R.L., Casablanca	BORAAG	NC	100.00	100.00
Borealis Chimie S.A.S., Courbevoie (BCHIFR)	BFR	C	—	100.00
Borealis Circular Solutions Holding GmbH, Vienna (BCIRC)	BORAAG	C	100.00	100.00
Borealis Colombia S.A.S., Bogota	BORAAG	NC	100.00	100.00
Borealis Compounds Inc., Houston (BCOMUS)	BUS	C	100.00	100.00
Borealis Denmark ApS, Copenhagen	BORAAG	NC	100.00	100.00
Borealis Digital Studio B.V., Zaventem	BORAAG	NC	100.00	90.00
	BPOBE		—	10.00
Borealis Financial Services N.V., Mechelen	BORAAG	C	100.00	100.00
	BSVSWE		—	0.00
Borealis France S.A.S., Courbevoie (BFR)	BORAAG	C	100.00	100.00
Borealis Group Services AS, Bamble	BABSWE	C	100.00	100.00
Borealis Insurance A/S (captive insurance company), Copenhagen	BORAAG	C	100.00	100.00
Borealis ITALIA S.p.A., Monza	BORAAG	C	100.00	100.00
Borealis Kallo N.V., Kallo	BORAAG	C	100.00	0.06
	BPOBE		—	99.94
Borealis L.A.T Belgium B.V., Beringen	BLATAT	NC	—	100.00
Borealis L.A.T Bulgaria EOOD, Sofia	BLATAT	NC	—	100.00
Borealis L.A.T Czech Republic s.r.o., České Budějovice	BLATAT	NC	—	100.00
Borealis L.A.T doo, Beograd, Belgrade	BLATAT	C	—	100.00
Borealis L.A.T France S.A.S., Courbevoie	BFR	C	—	100.00
Borealis L.A.T GmbH, Linz (BLATAT)	BORAAG	C	—	100.00
Borealis L.A.T Greece Single Member P.C., Athens	BLATAT	NC	—	100.00
Borealis L.A.T Hrvatska d.o.o., Klisa	BLATAT	NC	—	100.00
Borealis L.A.T Hungary Kft., Budapest	BLATAT	NC	—	100.00
Borealis L.A.T Italia s.r.l., Milan	BORAAG	NC	—	100.00
Borealis L.A.T Polska Sp. z o.o., Warsaw	BLATAT	NC	—	100.00
Borealis L.A.T Romania s.r.l., Bucharest	BLATAT	NC	—	100.00
Borealis L.A.T Slovakia s.r.o., Chotin	BLATAT	NC	—	100.00
Borealis México, S.A. de C.V., Mexico City	BORAAG	NC	100.00	100.00
	BCOMUS		0.00	0.00
Borealis Middle East Holding GmbH, Vienna (BORMEH)	BORAAG	C	100.00	100.00
Borealis Plasticos, S.A. de C.V., Mexico City	BORAAG	NC	100.00	100.00
	BABSWE		—	0.00
	BCOMUS		0.00
Borealis Plastik ve Kimyasal Maddeler Ticaret Limited Sirketi, Istanbul	BORAAG	NC	100.00	100.00
Borealis Plastomers B.V., Geleen	BORAAG	C	100.00	100.00
Borealis Poliolefinas da América do Sul Ltda., Itatiba	BORAAG	NC	99.99	99.99
	BSVSWE		0.01	0.01
Borealis Polska Sp. z o.o., Warsaw	BORAAG	NC	100.00	100.00
Borealis Polymere GmbH, Burghausen (BPODE)	BORAAG	C	100.00	100.00
Borealis Polymers N.V., Beringen (BPOBE)	BORAAG	C	100.00	100.00
	BSVSWE		—	0.00
Borealis Polymers Oy, Porvoo	BORAAG	C	100.00	100.00
Borealis Polyolefine GmbH, Schwechat (BPOAT)	BORAAG	C	100.00	100.00
	BSVSWE		0.00	0.00
Borealis Polyolefins d.o.o., Zagreb	BORAAG	NC	100.00	100.00
Borealis Polyolefins S.R.L., Bucharest	BORAAG	NC	100.00	100.00
Borealis Polyolefins s.r.o., Bratislava	BORAAG	NC	100.00	100.00
Borealis Produits et Engrais Chimiques du Rhin S.A.S., Ottmarsheim	BFR	C	—	100.00
Borealis Química España S.A., Barcelona	BORAAG	C	100.00	100.00
Borealis RUS LLC, Moscow	BORAAG	NC	100.00	100.00
Borealis s.r.o., Prague	BORAAG	NC	100.00	100.00
Borealis Services S.A.S., Paris	BFR	NC	100.00	100.00
Borealis Sverige AB, Stenungsund (BSVSWE)	BORAAG	C	100.00	100.00
Borealis Technology Oy, Porvoo	BORAAG	C	100.00	100.00
BOREALIS UK LTD, Manchester	BORAAG	C	100.00	100.00
Borealis USA Inc., Houston (BUS)	BORAAG	C	100.00	100.00
Borouge 4 LLC, Abu Dhabi	BORMEH	AEJ	40.00	40.00
Borouge PLC, Abu Dhabi (BOROLC)	BORMEH	AEJ	36.00	36.00
Borouge Pte. Ltd., Singapore	BOROLC	AEJ	84.75	84.75
	BORMEH		15.25	15.25
Chemiepark Linz Betriebsfeuerwehr GmbH, Linz	BAGMAT	NC-I	—	47.50
Circular Feedstock Walldürn GmbH, Walldürn³	OMVD	C	89.90
DYM SOLUTION CO., LTD, Cheonan	BORAAG	C	100.00	99.75
Ecoplast Kunststoffrecycling GmbH, Wildon	BORAAG	C	100.00	100.00
EPS Ethylen-Pipeline-Süd Geschäftsführungs GmbH, Munich	OMVD	NC-I	15.46	15.46
	BPODE		7.73	7.73
EPS Ethylen-Pipeline-Süd GmbH & Co KG, Munich	OMVD	AEA	20.66	20.66
	BPODE		10.33	10.33
Etenförsörjning i Stenungsund AB, Stenungsund	BABSWE	C	80.00	80.00
Feboran EOOD, Sofia (BFEBGR)	BORAAG	C	—	100.00
Franciade Agrifluides S.A.S. (FASA), Blois	BCHIFR	NC-I	—	40.00
	BAGRFR		—	9.98
Hallbar Kemi i Stenungsund, Stenungsund	BABSWE	NC-I	20.00	20.00
Industrins Räddningstjänst i Stenungsund AB, Stenungsund	BABSWE	NC-I	25.00	25.00
KB Munkeröd 1:72, Stenungsund	BABSWE	NC	100.00	100.00
	BSVSWE		0.00	0.00
Kilpilahden Voimalaitos Oy, Porvoo⁴	BORAAG	AEA	20.00	20.00
mtm compact GmbH, Niedergebra	BORAAG	C	100.00	100.00
mtm plastics GmbH, Niedergebra	BORAAG	C	100.00	100.00
Neochim AD, Dimitrovgrad	BFEBGR	AEA	—	20.30
Novealis Holdings LLC, Houston (BNOVUS)	BBNHUS	C	50.00	50.00
	BSBHUS		50.00	50.00
OMV Borealis Holding GmbH, Vienna (BHOLAT)	OMVRM	C	100.00	100.00
Petrogas International B.V., Eindhoven	BRENBE	AEA	25.00
PetroPort Holding AB, Stenungsund	BABSWE	AEJ	50.00	50.00
Recelerate GmbH, Herborn	BORAAG	NC-I	50.00	50.00
Renasci N.V., Ostend (BRENBE)⁴	BCIRC	C	98.56	27.42
Renasci Oostende Holding N.V., Ostend (BRHOBE)	BRENBE	C	100.00
Renasci Oostende Recycling N.V., Ostend	BRHOBE	C	100.00
Renasci Oostende SCP N.V., Ostend	BRHOBE	C	100.00
Rialti S.p.A., Taino	BORAAG	C	100.00
Rosier France S.A.S., Arras	BROSBE	C	—	100.00
Rosier Nederland B.V., Sas van Gent	BROSBE	C	—	100.00
Rosier S.A., Moustier (BROSBE)	BORAAG	C	—	98.09
Société d'Intérêt Collectif Agricole Laignes Agrifluides (SICA Laignes Agrifluides), Monéteau	BCHIFR	NC-I	—	39.97
	BAGRFR		—	9.93
Société d'Intérêt Collectif Agricole par Actions Simplifiée de Gouaix (SICA de Gouaix), Paris	BCHIFR	NC-I	—	25.00
	BLATAT		—	0.00
Star Bridge Holdings LLC, Port Murray (BSBHUS)²	BUS	C	100.00	100.00
STOCKAM G.I.E., Grand-Quevilly	BCHIFR	NC	—	99.00
	BAGRFR		—	1.00

Fuels & Feedstock
Abu Dhabi Oil Refining Company, Abu Dhabi	OMVRM	AEA	15.00	15.00
Abu Dhabi Petroleum Investments LLC, Abu Dhabi (ADPINV)	OMVRM	AEJ	25.00	25.00
ADNOC Global Trading LTD, Abu Dhabi	OMVRM	AEA	15.00	15.00
Aircraft Refuelling Company GmbH, Vienna	OMVRM	NC-I	33.33	33.33
Autobahn - Betriebe Gesellschaft m.b.H., Vienna	OMVRM	NC-I	47.19	47.19
Avanti Deutschland GmbH, Berchtesgaden	OMVRM	C	—	100.00
BSP Bratislava-Schwechat Pipeline GmbH in Liqu., Vienna⁵	OMVRM	NC-I	26.00	26.00
BTF Industriepark Schwechat GmbH, Schwechat	BPOAT	NC	50.00	50.00
	OMVRM		50.00	50.00
Deutsche Transalpine Oelleitung GmbH, Munich	OMVD	AEA	32.26	32.26
DUNATÀR Köolajtermék Tároló és Kereskedelmi Kft., Budapest	OHUN	C	100.00	100.00
Erdöl-Lagergesellschaft m.b.H., Lannach⁶	OMVRM	AEA	55.60	55.60
GENOL Gesellschaft m.b.H., Korneuburg	OMVRM	AEA	29.00	29.00
KSW Beteiligungsgesellschaft m.b.H., Vienna (SWJS)	OMVRM	NC	—	100.00
KSW Elektro- und Industrieanlagenbau Gesellschaft m.b.H., Feldkirch	SWJS	NC-I	—	25.10
OMV - International Services Ges.m.b.H., Vienna	OMVRM	C	100.00	100.00
OMV BULGARIA OOD, Sofia	PETROM	C	99.90	99.90
	OMVRM		0.10	0.10
OMV Česká republika, s.r.o., Prague	OMVRM	C	100.00	100.00
OMV Deutschland Services GmbH, Burghausen (OMVDS)	OMVD	C	100.00	100.00
OMV Hungária Ásványolaj Korlátolt Felelösségü Társaság, Budapest (OHUN)	OMVRM	C	100.00	100.00
OMV PETROM Aviation S.R.L., Otopeni	PETROM	C	100.00	100.00
	ROMAN		0.00	0.00
OMV Petrom Biofuels SRL, Bucharest	PETROM	C	25.00	75.00
	OMVRM		75.00	25.00
OMV PETROM MARKETING SRL, Bucharest (ROMAN)	PETROM	C	100.00	100.00
OMV Refining & Marketing Middle East & Asia GmbH, Vienna	OMVRM	C	100.00	100.00
OMV Renewable Fuels & Feedstock B.V., Beveren	OMVRM	C	100.00
OMV SLOVENIJA trgovina z nafto in naftnimi derivati, d.o.o., Koper	OMVRM	C	—	92.25
OMV Slovensko s.r.o., Bratislava	OMVRM	C	99.96	99.96
OMV SRBIJA d.o.o., Belgrade	PETROM	C	99.96	99.96
	OMVRM		0.04	0.04
OMV Supply & Trading Italia S.r.l., Trieste	OMVRM	C	100.00	100.00
OMV Supply & Trading Limited, London (OTRAD)	OMVRM	C	100.00	100.00
OMV Supply & Trading Singapore PTE LTD., Singapore	OTRAD	NC	100.00	100.00
OMV Switzerland Holding AG, Zug⁴	OGI	NC	100.00	100.00
Pak-Arab Refinery Limited, Karachi	ADPINV	AEJ	40.00	40.00
Petrom-Moldova S.R.L., Chisinau	PETROM	C	100.00	100.00
Routex B.V., Amsterdam	OMVRM	NC-I	20.00	20.00
Salzburg Fuelling GmbH, Salzburg⁴	OMVRM	NC-I	50.00	33.33
Società Italiana per l'Oleodotto Transalpino S.p.A., Trieste	OMVRM	AEA	32.26	32.26
SuperShop Marketing Korlátolt Felelősségű Társaság, Budapest	OHUN	NC-I	50.00	50.00
TGN Tankdienst-Gesellschaft Nürnberg GbR, Nuremberg	OMVD	NC-I	33.33	33.33
Transalpine Ölleitung in Österreich Gesellschaft m.b.H., Matrei in Osttirol	OMVRM	AEA	32.26	32.26

Energy
Central European Gas Hub AG, Vienna (HUB)	OGI	C	65.00	65.00
Deeep Tiefengeothermie GmbH, Vienna	OGEO	PC	49.00
EEX CEGH Gas Exchange Services GmbH, Vienna	HUB	AEA	49.00	49.00
Energy Infrastructure Limited, Wellington	NZEA	C	100.00	100.00
Energy Petroleum Holdings Limited, Wellington	NZEA	C	100.00	100.00
Energy Petroleum Investments Limited, Wellington	NZEA	C	100.00	100.00
Freya Bunde-Etzel GmbH & Co. KG, Bonn	OGSG	AEA	39.99	39.99
JSC GAZPROM YRGM Development, St. Petersburg⁷	OMVEP	NC-I	—	—
OJSC Severneftegazprom, Krasnoselkup	OMVEP	NC-I	24.99	24.99
OMV (Berenty) Exploration GmbH, Vienna	OMVEP	NC	100.00	100.00
OMV (IRAN) onshore Exploration GmbH, Vienna	OMVEP	C	100.00	100.00
OMV (Mandabe) Exploration GmbH, Vienna	OMVEP	NC	100.00	100.00
OMV (NAMIBIA) Exploration GmbH, Vienna	ONAFRU	NC	100.00	100.00
OMV (NORGE) AS, Stavanger (ONOR)	OMVEP	C	100.00	100.00
OMV (Tunesien) Production GmbH, Vienna	OMVEP	C	100.00	100.00
OMV (TUNESIEN) Sidi Mansour GmbH, Vienna	OMVEP	NC	100.00	100.00
OMV (Yemen Block S 2) Exploration GmbH, Vienna	OMVEP	C	100.00	100.00
OMV (YEMEN) Al Mabar Exploration GmbH, Vienna	OMVEP	NC	100.00	100.00
OMV (YEMEN) South Sanau Exploration GmbH, Vienna	OMVEP	NC	100.00	100.00
OMV Abu Dhabi E&P GmbH, Vienna	OMVEP	NC	100.00	100.00
OMV Abu Dhabi Offshore GmbH, Vienna	OMVEP	C	100.00	100.00
OMV Abu Dhabi Production GmbH, Vienna	OMVEP	C	100.00	100.00
OMV AUSTRALIA PTY LTD, Perth (OAUST)	OMV AG	C	100.00	100.00
OMV Austria Exploration & Production GmbH, Vienna (OEPA)	OMVEP	C	100.00	100.00
OMV Austria Geothermal GmbH, Vienna (OGEO)	OGREEN	C	100.00	100.00
OMV Barrow Pty Ltd, Perth	OAUST	NC	100.00	100.00
OMV Beagle Pty Ltd, Perth	OAUST	NC	100.00	100.00
OMV Beteiligungsverwaltungs GmbH, Vienna	OMV AG	NC	100.00	100.00
OMV Bina Bawi GmbH, Vienna	PETEX	NC	100.00	100.00
OMV Block 70 Upstream GmbH, Vienna	OMVEP	NC	100.00	100.00
OMV Croatia Geothermal GmbH, Vienna	OGREEN	NC	100.00
OMV East Abu Dhabi Exploration GmbH, Vienna	OMVEP	NC	100.00	100.00
OMV Enerji Ticaret Anonim Şirketi, Istanbul⁸	OMVRM	C	100.00	100.00
OMV Exploration & Production GmbH, Vienna (OMVEP)	OMV AG	C	100.00	100.00
OMV EXPLORATION & PRODUCTION LIMITED, Douglas	OMVEP	NC	—	100.00
OMV Gas Logistics Holding GmbH, Vienna (OGI)	OMV AG	C	100.00	100.00
OMV Gas Marketing & Trading Belgium, Brussels	ECOGAS	C	100.00	100.00
OMV Gas Marketing & Trading Deutschland GmbH, Dusseldorf	ECOGAS	C	100.00	100.00
OMV Gas Marketing & Trading GmbH, Vienna (ECOGAS)	OMVRM	C	100.00	100.00
OMV Gas Marketing & Trading Hungária Kft., Budapest	ECOGAS	C	100.00	100.00
OMV Gas Marketing & Trading Italia S.r.l., Milan	ECOGAS	NC	100.00	100.00
OMV Gas Marketing Trading & Finance B.V., Amsterdam	OFS	C	100.00	100.00
OMV Gas Storage Germany GmbH, Cologne (OGSG)	OMVDS	C	100.00	100.00
OMV Gas Storage GmbH, Vienna	OGI	C	100.00	100.00
OMV Gaz Iletim A.S., Istanbul⁸	OMVRM	C	100.00	100.00
OMV Green Energy GmbH, Vienna (OGREEN)	OMVEP	C	100.00	100.00
OMV Jardan Block 3 Upstream GmbH, Vienna	OMVEP	NC	100.00	100.00
OMV Maurice Energy GmbH, Vienna	OMVEP	NC	100.00	100.00
OMV Middle East & Africa GmbH, Vienna	OMVEP	NC	100.00	100.00
OMV Myrre Block 86 Upstream GmbH, Vienna	OMVEP	NC	100.00	100.00
OMV New Zealand Limited, Wellington (NZEA)	OMVEP	C	100.00	100.00
OMV NZ Production Limited, Wellington	NZEA	C	100.00	100.00
OMV OF LIBYA LIMITED, Douglas	OMVEP	C	100.00	100.00
OMV Offshore (Namibia) GmbH, Vienna (ONAFRU)	OMVEP	NC	100.00	100.00
OMV Offshore Bulgaria GmbH, Vienna	PETROM	C	100.00	100.00
OMV Offshore Morondava GmbH, Vienna	OMVEP	NC	100.00	100.00
OMV Oil and Gas Exploration GmbH, Vienna	OMVEP	NC	100.00	100.00
OMV Oil Exploration GmbH, Vienna	OMVEP	C	100.00	100.00
OMV Oil Production GmbH, Vienna	OMVEP	C	100.00	100.00
OMV Orient Hydrocarbon GmbH, Vienna	OMVEP	NC	100.00	100.00
OMV Orient Upstream GmbH, Vienna	OMVEP	NC	100.00	100.00
OMV Petroleum Exploration GmbH, Vienna (PETEX)	OMVEP	NC	100.00	100.00
OMV Petroleum Pty Ltd, Perth	NZEA	NC	100.00	100.00
OMV PETROM E&P BULGARIA S.R.L., Bucharest	PETROM	C	100.00	100.00
OMV Petrom Energy Solution SRL, Bucharest	PETROM	NC	100.00
OMV PETROM GEORGIA LLC, Tbilisi	PETROM	C	100.00	100.00
OMV Proterra GmbH, Vienna	OEPA	NC	100.00	100.00
OMV Russia Upstream GmbH, Vienna	OMVEP	C	100.00	100.00
OMV Upstream International GmbH, Vienna (OUPI)	OMVEP	C	100.00	100.00
Pearl Petroleum Company Limited, Road Town	OUPI	AEA	10.00	10.00
PEI Venezuela Gesellschaft mit beschränkter Haftung, Burghausen	OMVEP	NC	100.00	100.00
PETROM EXPLORATION & PRODUCTION LIMITED, Douglas	PETROM	NC	100.00	99.99
POSEIDON EXL 005 ANS, Lysaker	ONOR	PC	50.00
Preussag Energie International GmbH, Burghausen⁴	OMVEP	NC	100.00	100.00
S. PARC FOTOVOLTAIC ISALNITA S.A., Târgu Jiu	PETROM	PC	50.00	50.00
S. PARC FOTOVOLTAIC ROVINARI EST S.A., Târgu Jiu	PETROM	PC	50.00	50.00
S. PARC FOTOVOLTAIC TISMANA 1 S.A., Târgu Jiu	PETROM	PC	50.00	50.00
S. SOLARIST TISMANA 2 S.A., Târgu Jiu	PETROM	PC	50.00	50.00
SapuraOMV Block 30, S. de R.L. de C.V., Mexico City	SEUPMY	C	99.00	99.00
	SEMXMY		1.00	1.00
SapuraOMV Upstream (Americas) Sdn. Bhd., Kuala Lumpur (SEAMMY)	SEUPMY	C	100.00	100.00
SapuraOMV Upstream (Australia) Sdn. Bhd., Kuala Lumpur (SEAUMY)	SEOCMY	C	100.00	100.00
SapuraOMV Upstream (Holding) Sdn. Bhd., Kuala Lumpur (SEUPMY)	SOUPMY	C	100.00	100.00
SAPURAOMV UPSTREAM (MALAYSIA) SDN. BHD., Kuala Lumpur	SEUPMY	C	100.00	100.00
SapuraOMV Upstream (Mexico) Sdn. Bhd., Kuala Lumpur (SEMXMY)	SEAMMY	C	100.00	100.00
SapuraOMV Upstream (NZ) Sdn. Bhd., Kuala Lumpur (SENZMY)	SEOCMY	C	100.00	100.00
SapuraOMV Upstream (Oceania) Sdn. Bhd., Kuala Lumpur (SEOCMY)	SEUPMY	C	100.00	100.00
SapuraOMV Upstream (Sarawak) Inc., Nassau	SEUPMY	C	100.00	100.00
SapuraOMV Upstream (Western Australia) Pty Ltd, Perth	SEAUMY	C	100.00	100.00
SapuraOMV Upstream JV Sdn. Bhd., Kuala Lumpur	SENZMY	NC	100.00	100.00
SapuraOMV Upstream Sdn. Bhd., Kuala Lumpur (SOUPMY)	OMVEP	C	50.00	50.00

Corporate & Other
ASOCIATIA ROMANA PENTRU RELATIA CU INVESTITORII, Bucharest	PETROM	NC-I	20.00	20.00
Diramic Insurance Limited, Gibraltar	OMV AG	C	100.00	100.00
OMV Clearing und Treasury GmbH, Vienna	SNO	C	100.00	100.00
OMV Finance Services GmbH, Vienna (OFS)	SNO	C	100.00	100.00
OMV Finance Services NOK GmbH, Vienna	SNO	C	100.00	100.00
OMV Finance Solutions USD GmbH, Vienna	SNO	C	100.00	100.00
OMV Insurance Broker GmbH in Liqu., Vienna⁵	OMV AG	NC	100.00	100.00
OMV International Oil & Gas GmbH, Baar	OMV AG	C	100.00	100.00
OMV Petrom Global Solutions SRL, Bucharest	SNO	C	75.00	75.00
	PETROM		25.00	25.00
OMV Solutions GmbH, Vienna (SNO)	OMV AG	C	100.00	100.00
PETROMED SOLUTIONS SRL, Bucharest	PETROM	C	100.00	100.00

Assigned to multiple segments⁹
C2PAT GmbH & Co KG, Vienna	BORAAG	AEJ	—	25.00
	OMVRM		—	25.00
C2PAT GmbH, Vienna	BORAAG	AEJ	25.00	25.00
	OMVRM		25.00	25.00
OMV Deutschland GmbH, Burghausen (OMVD)	OMVRM	C	90.00	90.00
	OMV AG		10.00	10.00
OMV Deutschland Marketing & Trading GmbH & Co. KG, Burghausen¹⁰	OMVD	C	99.99	99.99
	OMVDS		0.01	0.01
OMV Deutschland Operations GmbH & Co. KG, Burghausen	OMVD	C	99.99	99.99
	OMVDS		0.01	0.01
OMV Downstream GmbH, Vienna (OMVRM)	OMV AG	C	100.00	100.00
OMV PETROM SA, Bucharest (PETROM)	OMV AG	C	51.16	51.16

¹ Type of consolidation:

C Consolidated subsidiary

AEA Associated companies accounted at-equity

AEJ Joint venture accounted at-equity

PC Joint operation; accounting for OMV’s share of assets, obligations for liabilities, share of income and expenses

NC-I Other not consolidated investment; associated companies and joint ventures of relatively little importance to the assets and earnings of the consolidated financial statements

NC Not-consolidated subsidiary; shell or distribution companies of relative insignificance individually and collectively to the consolidated financial statements

² Incorporated in Wilmington

³ Economic share 100.00%

⁴ Type of consolidation was changed compared to 2022.

⁵ Company’s legal name changed following the initiation of liquidation.

⁶Despite majority interest not being fully consolidated, but accounted for at-equity due to absence of control.

⁷ Economic share 99.99%

⁸ Segment assignment was changed compared to 2022.

⁹Assigned to the relevant segments in the segment reporting

¹⁰ In the 2023 financial year, OMV Deutschland Marketing & Trading GmbH & Co. KG made use of the exemption provision for the preparation of the annual financial statement and director’s report, audit and disclosure pursuant to Section 264b HGB in conjunction with Section 325 HGB. The company's exemption is mentioned in its notes and published in the Federal Gazette with reference to this provision and an indication of the parent company.

All the companies that are not consolidated either have low business volumes or are distribution companies; the total sales, net income/losses, and equity of such companies represent less than 1% of the Group totals.

Material joint operations (IFRS 11)

Name	Nature of activities	Principal place of business	% ownership December 31, 2023	% ownership December 31, 2022
Nafoora – Augila¹	Onshore development of hydrocarbons	Libya	100	100
Concession 103¹	Onshore development and production of hydrocarbons	Libya	100	100
Pohokura	Offshore production of hydrocarbons	New Zealand	74	74
Neptun Deep	Offshore exploration and development for hydrocarbons	Romania	50	50
Nawara	Onshore development and production of hydrocarbons	Tunisia	50	50

¹ The percentage disclosed represents the second party share. The state-owned Libyan national oil corporation (NOC) is entitled to 88–90% of the production (“primary split”).

Other significant arrangements

Name	Nature of activities	Principal place of business	% ownership December 31, 2023	% ownership December 31, 2022
NC 115¹	Onshore development and production of hydrocarbons	Libya	30	30
NC 186¹	Onshore development and production of hydrocarbons	Libya	24	24
SK 408²	Offshore development and production of hydrocarbons	Malaysia	40	40
Aasta Hansteen	Offshore production of hydrocarbons	Norway	15	15
Edvard Grieg	Offshore production of hydrocarbons	Norway	20	20
Gullfaks	Offshore production of hydrocarbons	Norway	19	19
Sarb & Umm Lulu	Offshore development and production of hydrocarbons	Abu Dhabi	20	20
Ghasha	Offshore exploration for and development of hydrocarbons	Abu Dhabi	5	5

¹ The percentage disclosed represents the second party share. The state owned Libyan national oil corporation (NOC) is entitled to 88–90% of the production (“primary split”).

² SK408 is part of the SapuraOMV disposal group that was reclassified to held for sale.

Oil and Gas Reserve Estimation and Disclosures (unaudited)

The following tables provide supplementary information in respect of the Group’s oil and gas activities. In the absence of detailed disclosure rules in this area under IFRS, the Group has elected to voluntarily disclose the data that would have been required under the ASC 932 as if it were reporting according to US GAAP.
To the extent that information refers to financial statements data, the information is based on the primary financial statements (IFRS financial statements).
Disclosed financial data refers to the Energy operating business segment excluding gas supply, marketing, trading and logistics. Further information on OMV’s operating segments is included in Note 5 – Segment reporting.
The regional structure is presented below¹:

Romania and Black Sea	Bulgaria, Kazakhstan (until May 2021) and Romania
Austria	Austria
Russia	Russia (until February 2022)
North Sea	Norway
Middle East and Africa	Iran (evaluation on hold), Kurdistan region of Iraq, Libya, Tunisia, United Arab Emirates, Yemen
New Zealand and Australia	Australia and New Zealand
Malaysia	SapuraOMV²

¹ The regions Central and Eastern Europe (including Romania, the Black Sea and Austria) and Asia-Pacific (including New Zealand, Australia and Malaysia) listed in the Director’s Report are split further in this disclosure to provide the information in a more detailed manner.

² Including not only Malaysia but also SapuraOMV subsidiaries in New Zealand, Australia, and Mexico.

Acquisitions

There were no major acquisitions during 2023, 2022, and 2021.

Disposals and deconsolidation

There were no major disposals during 2023.
On March 1, 2022 OMV ceased to fully consolidate JSC GAZPROM YRGM Development due to the loss of control, following the Russian war on Ukraine.
On August 1, 2021, SapuraOMV Upstream Sdn. Bhd. sold its share in SapuraOMV Upstream (PM) Inc., which held interests in various producing assets located offshore Peninsular Malaysia.
On May 14, 2021, OMV Petrom finalized the sale of its 100% share in Kom-Munai LLP and Tasbulat Oil Corporation LLP (both based in Aktau, Kazakhstan).

Held for sale

On December 4, 2023 SapuraOMV was reclassified to “held for sale”. Further information is included in Note 22 – Assets and liabilities held for sale and Note 39 – Subsequent events. The Oil and Gas Reserve Estimation and Disclosures below include full amounts of the disposal group.

Non-controlling interest

As OMV holds 51% of OMV Petrom, which is fully consolidated. Figures therefore include 100% of OMV Petrom’s assets and results.

OMV has a share of 50% in SapuraOMV and it is fully consolidated; figures therefore include 100% of SapuraOMV’s assets and results.

Equity-accounted investments

OMV holds a 10% interest in Pearl Petroleum Company Limited (Middle East and Africa region).

On March 1, 2022 OMV ceased to equity account its 24.99% interest in OJSC Severneftegazprom (Russia region) due to loss of significant influence, following the Russian war on Ukraine.

The disclosures of equity-accounted investments in the tables below represent the interest of OMV in the companies.

Further information on significant impacts

2023 was significantly impacted by final investment decisions (FID) for the execution of the Neptun Deep project in the Black Sea and the Hail and Ghasha development in the United Arab Emirates.
The subsequent tables may contain rounding differences.

Tables

a) Capitalized costs

Capitalized costs represent the sum of capitalized oil and gas assets, including other intangible assets and property, plant, and equipment such as land, plant and machinery, concessions, licenses, and rights.

Capitalized costs – subsidiaries
In EUR mn
	2023	2022	2021
Unproved oil and gas properties	1,197	1,811	2,137
Proved oil and gas properties	29,501	28,240	27,611
Total	30,698	30,051	29,749
Accumulated depreciation	–20,009	–19,411	–18,136
Net capitalized costs	10,689	10,640	11,613

Capitalized costs – equity-accounted investments
In EUR mn
	2023	2022	2021
Unproved oil and gas properties	146	151	164
Proved oil and gas properties	314	292	477
Total	460	443	641
Accumulated depreciation	–193	–76	–99
Net capitalized costs	267	367	542

b) Costs incurred

Costs incurred include all costs, capitalized or expensed, during the year in the Group’s oil and gas property acquisition, exploration and development activities.

Costs incurred
In EUR mn
	Romania and Black Sea	Austria	Russia	North Sea	Middle East and Africa	New Zealand and Australia	Malaysia	Total

	2023
Subsidiaries
Acquisition of unproved properties	—	—	—	—	—	—	—	—
Exploration costs	35	61	—	62	28	25	38	248
Development costs	338	40	—	168	252	71	154	1,024
Costs incurred	373	101	—	231	280	96	191	1,272
Equity-accounted investments	—	—	—	—	33	—	—	33


	2022
Subsidiaries
Acquisition of unproved properties	—	—	—	—	—	—	—	—
Exploration costs	35	24	—	59	10	26	48	202
Development costs	327	21	—	159	171	188	102	969
Costs incurred	362	45	—	219	181	214	150	1,171
Equity-accounted investments	—	—	2	—	27	—	—	29


	2021
Subsidiaries
Acquisition of unproved properties	1	—	—	0	—	—	1	3
Exploration costs	41	6	—	81	25	26	30	210
Development costs	265	38	—	243	165	102	39	852
Costs incurred	307	44	—	324	191	128	70	1,065
Equity-accounted investments	—	—	62	—	21	—	—	83

c) Results of operations of oil and gas producing activities

The following tables represent only those revenues and expenses that occur directly in connection with OMV’s oil and gas producing operations. The results of oil and gas activities should not be equated to Energy net income since interest costs, general corporate overhead costs, other costs, and power production, gas supply, marketing, trading, and logistics are not allocated. Further information on OMV’s operating segments is included in Note 5 – Segment reporting. Income taxes are hypothetically calculated, based on the statutory tax rates and the effect of tax credits on investments and loss carryforwards.

Results of operations of oil and gas producing activities
In EUR mn
	Romania and Black Sea	Austria	Russia	North Sea	Middle East and Africa	New Zealand and Australia	Malaysia	Total

	2023
Subsidiaries
Sales to unaffiliated parties¹	6	1	—	979	635	218	268	2,107
Intercompany sales	2,452	418	—	1,064	1,646	231	—	5,812
	2,458	419	—	2,044	2,282	450	268	7,920
Production costs	–575	–94	—	–197	–181	–83	–18	–1,148
Royalties	–501	–84	—	—	–283	–46	–10	–925
Exploration expenses²	–23	–8	—	–60	–16	–8	–107	–222
Depreciation, amortization, impairments and write-ups	–475	–97	—	–333	–168	–214	–72	–1,358
Other costs³	–14	–17	—	–116	–50	–15	–19	–231
	–1,587	–300	—	–707	–698	–367	–226	–3,884
Results before income taxes	871	119	—	1,337	1,584	83	42	4,036
Income taxes⁴	–124	–42	—	–1,063	–1,273	–23	–16	–2,542
Results from oil and gas production	746	76	—	274	311	60	26	1,493
Results of equity-accounted investments	—	—	—	—	–72	—	—	–72


	2022
Subsidiaries
Sales to unaffiliated parties¹	5	–32	206	1,394	931	225	302	3,032
Intercompany sales	3,281	959	—	3,530	1,927	236	—	9,933
	3,286	927	206	4,924	2,858	461	302	12,965
Production costs	–512	–91	—	–183	–183	–87	–16	–1,071
Royalties	–1,102	–182	—	—	–312	–46	–21	–1,663
Exploration expenses²	–28	–12	—	–118	2	–53	–41	–250
Depreciation, amortization, impairments and write-ups	–845	–43	–12	–416	–424	46	–91	–1,785
Other costs³	–65	–15	–60	–131	–64	–2	–22	–359
	–2,552	–344	–72	–848	–980	–142	–191	–5,128
Results before income taxes	734	583	135	4,077	1,878	319	111	7,837
Income taxes⁴	–121	–229	–28	–3,274	–1,553	–83	–34	–5,322
Results from oil and gas production	613	354	107	803	325	237	77	2,516
Results of equity-accounted investments	—	—	3	—	56	—	—	59

Results of operations of oil and gas producing activities
In EUR mn
	Romania and Black Sea	Austria	Russia	North Sea	Middle East and Africa	New Zealand and Australia	Malaysia	Total

	2021
Subsidiaries
Sales to unaffiliated parties¹	22	–649	562	876	556	279	239	1,884
Intercompany sales	1,845	432	—	1,345	1,018	122	—	4,762
	1,868	–218	562	2,221	1,574	400	239	6,646
Production costs	–477	–78	—	–144	–146	–81	–24	–950
Royalties	–404	–66	—	—	–135	–39	–13	–658
Exploration expenses²	–43	–5	—	–108	–43	–18	–65	–281
Depreciation, amortization, impairments and write-ups	–499	–102	–70	–381	–246	–127	–101	–1,526
Other costs³	–70	–14	–329	–132	–25	–5	–21	–597
	–1,493	–265	–399	–766	–596	–270	–223	–4,012
Results before income taxes	375	–483	163	1,455	979	130	15	2,635
Income taxes⁴	–59	121	–27	–981	–750	–38	–6	–1,740
Results from oil and gas production	316	–362	135	475	229	92	10	895
Results of equity-accounted investments	—	—	24	—	31	—	—	55

¹Including hedging effects; the Austria region includes hedging effects of centrally managed derivatives (2023: nil, 2022: EUR –33 mn, 2021: EUR –675 mn).

²Including impairment losses related to exploration & appraisal

³Including inventory changes

⁴Income taxes in the North Sea and Middle East and Africa include corporation tax and special petroleum tax. Income taxes for 2023 and 2022 in Austria included the EU solidarity contribution.

d) Oil and gas reserve quantities

Proved reserves are those quantities of oil and gas, that, through analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulation before the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain. Proved oil and gas reserves were estimated based on a twelve-month average price, unless prices are defined by contractual arrangements.
Proved developed reserves are those proved reserves that can be expected to be recovered through existing wells with existing equipment and operating methods, or in which the costs of the required equipment are relatively minor compared with the cost of a new well and through installed extraction equipment and infrastructure operational at the time of the reserves estimate. It should be reasonably certain that the required future expenditure will be made to safeguard existing equipment within the current budget.
Proved undeveloped reserves are those proved reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion or substantial new investment is required in order to safeguard or replace aging facilities.

Crude oil and NGL
In mn bbl
	Romania and Black Sea	Austria	Russia	North Sea	Middle East and Africa	New Zealand and Australia	Malaysia	Total
Proved developed and undeveloped reserves – Subsidiaries
January 1, 2021	298.8	34.0	—	44.5	270.2	8.0	5.7	661.2
Revisions of previous estimates	4.2	1.0	—	17.2	30.3	7.6	4.9	65.2
Purchases	—	—	—	—	—	—	—	—
Disposals	–21.4	—	—	—	—	—	–2.4	–23.8
Extensions and discoveries	0.3	—	—	—	—	0.8	—	1.0
Production	–23.0	–3.6	—	–15.3	–24.8	–3.5	–1.7	–71.9
December 31, 2021	258.8	31.4	—	46.4	275.7	12.9	6.5	631.7
Revisions of previous estimates	–8.4	1.9	—	15.8	32.3	1.1	0.4	43.1
Purchases	—	—	—	—	—	—	—	—
Disposals	—	—	—	—	—	—	—	—
Extensions and discoveries	0.1	—	—	—	—	—	—	0.1
Production	–20.9	–3.3	—	–14.7	–27.3	–3.0	–0.6	–69.9
December 31, 2022	229.6	30.0	—	47.6	280.6	11.0	6.2	605.0

Revisions of previous estimates	–1.6	0.7	—	6.9	89.9	0.6	2.1	98.6
Purchases	—	—	—	—	—	—	—	—
Disposals	—	—	—	—	—	—	—	—
Extensions and discoveries	0.3	—	—	—	—	—	—	0.3
Production	–20.0	–3.0	—	–13.4	–29.1	–3.6	–0.7	–69.7
December 31, 2023	208.3	27.7	—	41.1	341.5	8.0	7.6	634.2


Proved developed and undeveloped reserves – Equity-accounted investments
December 31, 2021	—	—	—	—	17.5	—	—	17.5
December 31, 2022	—	—	—	—	16.0	—	—	16.0
December 31, 2023	—	—	—	—	15.1	—	—	15.1


Proved developed reserves – Subsidiaries
December 31, 2021	234.2	31.4	—	40.7	189.2	6.0	1.6	503.2
December 31, 2022	206.6	30.0	—	39.4	234.5	9.2	1.7	521.4
December 31, 2023	187.6	27.7	—	32.8	252.4	8.0	1.4	509.8


Proved developed reserves – Equity-accounted investments
December 31, 2021	—	—	—	—	14.7	—	—	14.7
December 31, 2022	—	—	—	—	15.4	—	—	15.4
December 31, 2023	—	—	—	—	13.4	—	—	13.4

Gas
In bcf
	Romania and Black Sea	Austria	Russia	North Sea	Middle East and Africa	New Zealand and Australia	Malaysia	Total
Proved developed and undeveloped reserves – Subsidiaries
January 1, 2021	940.7	155.3	—	383.6	82.4	195.3	376.3	2,133.6
Revisions of previous estimates	76.2	17.7	—	7.8	80.7	115.3	212.0	509.6
Purchases	—	—	—	—	—	—	—	—
Disposals	–22.3	—	—	—	—	—	–9.1	–31.5
Extensions and discoveries	1.5	—	—	—	—	15.4	—	17.0
Production	–130.6	–20.6	—	–102.3	–17.3	–51.8	–64.5	–387.0
December 31, 2021¹	865.5	152.4	—	289.2	145.8	274.2	514.7	2,241.7
Revisions of previous estimates	68.1	15.2	—	144.4	–1.3	9.0	–7.9	227.6
Purchases	—	—	—	—	—	—	—	—
Disposals	—	—	—	—	—	—	—	—
Extensions and discoveries	1.6	—	—	—	—	—	—	1.6
Production	–122.0	–19.7	—	–102.2	–14.7	–47.1	–60.0	–365.6
December 31, 2022¹	813.2	147.9	—	331.4	129.8	236.1	446.8	2,105.2

Revisions of previous estimates	464.3	13.7	—	37.0	195.5	–36.5	56.2	730.1
Purchases	—	—	—	—	—	—	—	—
Disposals	—	—	—	—	—	—	—	—
Extensions and discoveries	4.9	—	—	—	—	—	—	4.9
Production	–115.7	–18.0	—	–84.5	–13.6	–53.8	–57.9	–343.6
December 31, 2023¹	1,166.8	143.6	—	283.9	311.7	145.7	445.0	2,496.7


Proved developed and undeveloped reserves – Equity-accounted investments
December 31, 2021	—	—	1,167.1	—	369.2	—	—	1,536.4
December 31, 2022	—	—	—	—	303.6	—	—	303.6
December 31, 2023	—	—	—	—	292.5	—	—	292.5


Proved developed reserves – Subsidiaries
December 31, 2021	779.5	84.0	—	287.0	62.5	115.4	291.9	1,620.2
December 31, 2022	723.4	80.3	—	290.8	39.9	195.9	228.9	1,559.1
December 31, 2023	628.0	76.0	—	246.8	35.0	145.7	158.5	1,290.0


Proved developed reserves – Equity-accounted investments
December 31, 2021	—	—	1,090.7	—	278.9	—	—	1,369.7
December 31, 2022	—	—	—	—	288.3	—	—	288.3
December 31, 2023	—	—	—	—	259.3	—	—	259.3

¹ Including approximately 67.6 bcf of cushion gas held in storage reservoirs

e) Standardized measure of discounted future net cash flows

The future net cash flow information is based on the assumption that the prevailing economic and operating conditions will persist throughout the time during which proved reserves will be produced. Neither the effects of future pricing changes nor expected changes in technology and operating practices are considered.
Future cash inflows represent the revenues received from production volumes, including cushion gas held in storage reservoirs, assuming that the future production is sold at prices used in estimating year-end quantities of proved reserves (twelve-month average price). Future production costs include the estimated expenditure for production of the proved reserves plus any production taxes without consideration of future inflation. Future decommissioning costs comprise the net costs associated with decommissioning wells and facilities. Future development costs include the estimated costs of development drilling and installation of production facilities. For all three categories year-end costs without consideration of inflation are assumed. Future income tax payments are calculated on the basis of the income tax rate applicable in each of the countries in which the Group operates. The present cash value results from the discounting of the future net cash flow at a discount rate of 10% per year. The standardized measure does not purport to be an estimate of the fair value of the Group’s proven reserves. An estimate of fair value would also take into account, among many other factors, the expected recovery of reserves in excess of proved reserves, anticipated changes in future prices and costs and a discount factor representative of the risks inherent in the production of oil and gas.

Standardized measure of discounted future net cash flows
In EUR mn
	Subsidiaries and equity-accounted investments
	Romania and Black Sea	Austria	Russia	North Sea	Middle East and Africa	New Zealand and Australia	Malaysia	Total

	2023
Subsidiaries
Future cash inflows	30,238	3,656	—	6,457	28,233	1,170	2,256	72,011
Future production and decommissioning costs	–13,937	–2,276	—	–2,397	–8,842	–1,412	–622	–29,486
Future development costs	–3,184	–378	—	–512	–1,901	–86	–71	–6,131
Future net cash flows, before income taxes	13,117	1,002	—	3,549	17,491	–327	1,563	36,395
Future income taxes	–1,857	–129	—	–3,265	–12,340	168	–461	–17,884
Future net cash flows, before discount	11,260	873	—	284	5,150	–159	1,103	18,511
10% annual discount for estimated timing of cash flows	–4,546	–422	—	–11	–2,582	169	–297	–7,689
Standardized measure of discounted future net cash flows	6,714	451	—	273	2,568	10	806	10,821
Equity-accounted investments	—	—	—	—	475	—	—	475


	2022
Subsidiaries
Future cash inflows	29,864	7,435	—	14,937	26,611	2,051	2,248	83,145
Future production and decommissioning costs	–15,951	–2,766	—	–2,711	–7,771	–1,829	–690	–31,718
Future development costs	–1,424	–246	—	–631	–890	–222	–213	–3,626
Future net cash flows, before income taxes	12,489	4,422	—	11,594	17,950	0	1,345	47,800
Future income taxes	–1,724	–1,028	—	–10,465	–13,283	132	–380	–26,748
Future net cash flows, before discount	10,765	3,394	—	1,129	4,667	132	965	21,053
10% annual discount for estimated timing of cash flows	–4,718	–1,815	—	–184	–1,547	213	–296	–8,347
Standardized measure of discounted future net cash flows	6,048	1,579	—	945	3,120	345	669	12,705
Equity-accounted investments	—	—	—	—	451	—	—	451

Standardized measure of discounted future net cash flows
In EUR mn
	Subsidiaries and equity-accounted investments
	Romania and Black Sea	Austria	Russia	North Sea	Middle East and Africa	New Zealand and Australia	Malaysia	Total
	2021
Subsidiaries
Future cash inflows	17,585	3,336	2,625	5,608	16,545	1,905	1,433	49,038
Future production and decommissioning costs	–9,221	–1,612	–2,148	–2,293	–5,419	–1,647	–490	–22,831
Future development costs	–1,422	–246	—	–281	–776	–380	–257	–3,362
Future net cash flows, before income taxes	6,942	1,479	477	3,034	10,350	–122	685	22,845
Future income taxes	–577	–264	–97	–2,541	–6,893	116	–175	–10,432
Future net cash flows, before discount	6,366	1,214	380	493	3,457	–6	510	12,413
10% annual discount for estimated timing of cash flows	–3,089	–630	–71	–109	–1,100	175	–216	–5,040
Standardized measure of discounted future net cash flows	3,276	584	309	384	2,357	169	294	7,373
Equity-accounted investments	—	—	187	—	336	—	—	523

f) Changes in the standardized measure of discounted future net cash flows

Changes in the standardized measure of discounted future net cash flows
In EUR mn
	2023	2022	2021
Subsidiaries
Beginning of year	12,705	7,373	3,987
Oil and gas sales produced during the year, net of related production costs	–7,049	–4,102	–2,262
Net change in prices and production costs related to future periods	–6,538	13,243	8,231
Net change due to purchases and sales of minerals in place	—	—	–67
Net change due to extensions and discoveries	32	7	5
Development and decommissioning costs incurred during the period	823	895	657
Changes in estimated future development and decommissioning costs	–1,912	–344	–269
Revisions of previous reserve estimates	4,239	4,507	1,854
Accretion of discount	1,146	671	341
Net change in income taxes (incl. tax effects from purchases and sales)	7,539	–9,593	–4,935
Other¹	–165	48	–168
End of year	10,821	12,705	7,373
Equity-accounted investments	475	451	523

¹Contains movements in foreign exchange rates vs. the EUR. 2022 was impacted by the change of consolidation method of the Russian operations.

Vienna, March 5, 2024
The Executive Board

Alfred Stern m.p. Chairman of the Executive Board and Chief Executive Officer	Reinhard Florey m.p. Chief Financial Officer
Martijn van Koten m.p. Executive Vice President Fuels & Feedstock	Daniela Vlad m.p. Executive Vice President Chemicals & Materials
Berislav Gaso m.p. Executive Vice President Energy

Directors’ report – operational review

Business developments in 2023

Sales for the financial year 2023 were EUR 268.86 mn (2022: EUR 246.61 mn). As OMV Aktiengesellschaft is a holding company, most of the sales consist of group charges and corporate service charges billed to the subsidiaries.
The Operating Result was EUR -49.01 mn (2022: EUR -64.60 mn).
The Financial Result in 2023 was EUR 1,425.92 mn (2022: EUR 1,852.89 mn). The financial items of OMV Aktiengesellschaft as a holding company mainly consist of the dividends and other income from investments in the operating companies. Net income from investments decreased to EUR 1,428.10 mn (2022: EUR 1,957.48 mn). The dividend of OMV Petrom amounting to EUR 242.02 mn was higher than last year (2022: EUR 199.13 mn). Additionally a special dividend of OMV Petrom was distributed in the amount of EUR 288.56 mn (2022: EUR 263.61).
The contribution of companies in the Energy segment excluding OMV Petrom amounted to EUR 504.25 mn, well above the level of 2022 (EUR 72.56 mn). OMV Gas Logistics Holding GmbH and OMV Gas Marketing & Trading GmbH contributed with EUR 573.80 in the current year (2022: EUR 72.28 mn).
The contribution of companies in the Fuels & Feedstock segment excluding OMV Petrom amounted to EUR 97.45 mn and was significantly lower than in the previous year (2022: EUR 1,619.91 mn),
The companies in the Chemicals & Materials segment contributed with EUR 305.19 mn (2022: EUR 523.94 mn).
In the business year 2023 there was a capital contribution in OMV Deutschland GmbH. In the previous business year there was a capital increase in OMV Petrom and a capital contribution in OMV Switzerland Holding AG. Additionally OMV Beteiligungsverwaltungs GmbH was founded.
The cash flow from operating activities for 2023 amounted to EUR -161.45 mn (2022: EUR -115.30 mn), the cash flow from investing activities to EUR 4,555.13 mn (2022: EUR 2,938.82 mn) and the cash flow from financing activities to EUR -5,305.99 mn (2022: EUR -929.25 mn).
Net income for the year amounted to EUR 1,470.83 mn (2022: EUR 1,743.17 mn).
Total assets decreased to EUR 19,190.37 mn (2022: EUR 23,641.77 mn).
At balance sheet date, stockholders’ equity stood at EUR 6,626.56 mn (2022: EUR 6,804.35 mn). The equity ratio as of December 31, 2023, was 34.53% (2022: 28.78%).
The ratio of fixed assets to total assets was 81.36% at balance sheet date (2022: 73.02%).
Return On Equity was 21.90% (2022: 27.64%).
In 2023, the average number of employees at the holding company was 917 (2022: 871).
For definitions of these ratios, readers are referred to the glossary of abbreviations and definitions, which is an integral part of the Directors’ report.

Treasury Shares

As at balance sheet date, a total of 142,007 own shares (EUR 142,007), or 0.04% of the capital stock, were held.
For details relating to the acquisition of treasury shares please refer to the chapter “Information required by Section 243a Unternehmensgesetzbuch (Austrian Commercial Code)”.
During the reporting period, 59,667 shares, equivalent to 0.02% of the capital stock, with a value of EUR 2.32 mn were used for share-based compensations. The difference of EUR 1.66 mn between this amount and the historic repurchase value was written to the capital reserve.

Information required by section 243a
of the Unternehmensgesetzbuch
(Austrian Commercial Code)

1. The capital stock amounts to EUR 327,272,727 and is divided into 327,272,727 bearer shares of no par value. There is only one class of shares.
2. There is a consortium agreement in place between the two core shareholders, Österreichische Beteiligungs AG (ÖBAG) and Mubadala Petroleum and Petrochemicals Holding Company L.L.C (MPPH), which provides for coordinated behavior and certain limitations on transfers of shareholdings.¹⁷
3. ÖBAG holds 31.5% and MPPH holds 24.9% of the capital stock.¹⁷
4. All shares have the same control rights.
5. Employees who are shareholders directly exercise their voting rights at the Annual General Meeting.
6. The Company’s Executive Board must consist of two to six members. The Company’s Supervisory Board must consist of at least six members elected by the Annual General Meeting and of the members nominated under section 110 Paragraph 1 of the Arbeitsverfassungsgesetz (Austrian Labor Constitution Act). Resolutions concerning the dismissal of members of the Supervisory Board pursuant to section 87 Paragraph 8 of the Aktiengesetz (Austrian Stock Corporation Act) require a simple majority of the votes cast. To approve capital increases pursuant to section 149 of the Austrian Stock Corporation Act and alterations of the Articles of Association (except those concerning the Company’s objects), simple majorities of the votes and capital represented in adopting the resolution are sufficient.
7.

(i) adjust fractional amounts or

In addition, the Supervisory Board was authorized to adopt amendments to the Articles of Association resulting from the issuance of shares according to the authorized capital.

8. As of December 31, 2023, OMV has outstanding perpetual hybrid notes in the nominal amount of EUR 2,500 mn which are subordinated to all other creditors.

On December 7, 2015, OMV issued hybrid notes with an aggregate principal amount of EUR 1,500 mn, in two tranches of EUR 750 mn each:

(i) The hybrid notes of tranche 1, with a first call date in 2021, were called and redeemed at their principal amount (plus interest accrued) on November 30, 2021.

On September 1, 2020, OMV issued hybrid notes with an aggregate principal amount of EUR 1,250 mn, in two tranches (tranche 1: EUR 750 mn; tranche 2: EUR 500 mn) with the following interest payable:

9. The material financing agreements to which OMV is a party and bonds issued by OMV contain typical change of control clauses.
10. There are no agreements between the Company and members of the Executive Board and Supervisory Board or employees regarding the payment of compensation in the event of a public takeover bid.
11. The most important elements of the internal control and risk management system regarding the accounting process are the following: Governance for the internal control system is defined by internal corporate regulations (ICS Directive and its Annexes). Corporate Internal Audit controls the compliance with these principles and requirements through regular audits, based on the annual audit plan approved by the Audit Committee of the Supervisory Board, or through ad hoc audits.

The results of those audits are presented to the Audit Committee of the Supervisory Board. For the main “end-to-end” processes (e.g., purchase-to-pay, order-to-cash), Group-wide Minimum Control Requirements are defined. Based on a defined time plan, the implementation and the effectiveness are being monitored. The Group uses a comprehensive risk management system. The essential processes of the financial reporting system have been identified and analyzed. In addition, the effectiveness of the risk management system is regularly evaluated by external auditors. The results of the evaluation are reported to the Audit Committee of the Supervisory Board.

Non-financial declaration in accordance with section 243b of the Austrian Commercial Code

In accordance with sections 243b Paragraph 6 and 267a Paragraph 6 of the Austrian Commercial Code, a separate consolidated non-financial report will be issued.

Risk Management

As an international oil, gas, and chemicals company with operations extending from hydrocarbon exploration and production through to the trading and marketing of mineral oil products, chemical products, and natural gas, OMV is exposed to a variety of risks – including market and financial risks, operational risks, and strategic risks. The Group’s risk management processes focus on the identification, assessment, and evaluation of such risks and their impact on the Group’s financial stability and profitability. The objective of these activities is to actively manage risks in the context of the Group’s risk appetite and defined risk tolerance levels in order to achieve OMV’s long-term strategic goals.

Risk management governance

OMV recognizes the dynamic and evolving nature of its business landscape. Effective risk governance is crucial for successfully navigating through uncertainties inherent to the nature of OMV’s operations.
As an integral part of the Supervisory Board, the Audit Committee diligently oversees the implementation and efficacy of our risk management processes. By leveraging the expertise within the Audit Committee and remaining adaptive through ongoing education, the Supervisory Board reinforces its commitment to robust risk governance.

It is OMV’s view that the Group’s overall risk is significantly lower than the sum of the individual risks due to its integrated nature and the fact that various risks partially offset each other. The balancing effects of industry risks, however, can often lag or weaken over time. OMV’s risk management activities therefore focus on the net risk exposure of the Group’s existing and future portfolio. The interdependencies and correlations between different risks are also reflected in the Company’s consolidated risk profile. Risk management and insurance activities are centrally coordinated at the corporate level by the Treasury and Risk & Insurance Management departments. These departments ensure that well-defined and consistent risk management processes, tools, and techniques are applied across the entire organization. Risk ownership is assigned to the managers who are best suited to overseeing and managing the respective risk.
The overall objective of the risk policy is to safeguard the cash flows required by the Group and to maintain a strong investment-grade credit rating in line with the Group’s risk appetite.
Financial and non-financial risks are regularly identified, assessed, and reported through the Group’s Enterprise-Wide Risk Management (EWRM) process.
The main purpose of the OMV Group’s EWRM process is to deliver value through risk-based management and decision-making, which is ensured by applying a “three lines of defense” model (1. business management, 2. risk management and oversight functions, 3. internal audit). The assessment of financial, operational, and strategic risks helps the Group leverage business opportunities in a systematic manner. This systematic approach ensures that OMV’s value grows sustainably. Since 2003, the EWRM system has helped enhance risk awareness and improve risk management skills across the entire organization, including at subsidiaries in more than 20 countries. The OMV Group is constantly enhancing the EWRM process based on internal and external requirements, for instance developing ESG (Environmental, Social, and Governance) reporting standards and frameworks.
OMV’s EWRM process has been set up in accordance with the ISO 31000 standard and is facilitated by a Group-wide IT system supporting the established individual process steps: risk identification, risk analysis, risk evaluation, risk treatment, reporting, and risk review through continuous monitoring of changes to the risk profile. The overall risk resulting from the bottom-up risk management process is computed using Monte Carlo simulations and compared against planning data. This is further combined with a top-down approach from the senior management view to capture risks associated with the Group’s strategy. The process also includes companies that are not fully consolidated. The EWRM process uses common risk terminology and language across the OMV Group to facilitate effective risk communication, whereby ESG risks play a key role in the OMV risk taxonomy. Twice a year, the results of this process are consolidated and presented to the Executive Board and the Audit Committee of the Supervisory Board. In compliance with the Austrian Code of Corporate Governance, the effectiveness of the EWRM system is evaluated by an external auditor on an annual basis. The key financial and non-financial risks identified with respect to OMV’s mid-term planning are:

_►Financial risks, including market price risks and foreign exchange risks
_►Operational risks, including all risks related to physical assets, production risks, project risks, personnel risks, IT risks, HSSE, and regulatory/compliance risks
_►Strategic risks arising, for example, from climate change, changes in technology, risks to reputation, or political uncertainties, including sanctions

Financial risk management

Market price and financial risks arise from volatility in the prices of commodities, including the market price risks from European Emission Allowances, foreign exchange (FX) rates, and interest rates. Also of importance are credit risks, which arise from the inability of a counterparty to meet a payment or delivery commitment. As an oil, gas, and chemicals company, OMV has a significant exposure to oil, natural gas, and chemicals prices. Substantial FX exposure includes the USD, RON, NOK, NZD, and SEK. The Group has an economic net USD long position, mainly resulting from oil production sales. The comparatively less significant exposure in RON, NOK, NZD, and SEK originates from expenses in local currencies in the respective countries.

Management of commodity price risk, FX risk, European Emission Allowances

The analysis and management of financial risks arising from foreign currencies, interest rates, commodity prices, European Emission Allowances, counterparties, liquidity, and insurable risks are consolidated at the corporate level. Market price risk is monitored and analyzed centrally in respect of its potential cash flow impact using a specific risk analysis model that considers portfolio effects. The impact of financial risks (e.g., commodity prices, currencies) on the OMV Group’s cash flow and liquidity is reviewed regularly by the Risk Committee, which is chaired by the CFO and comprises the senior management of the business segments and corporate functions.
In the context of commodity price risk and FX risk, the OMV Executive Board decides on hedging strategies to mitigate such risks whenever deemed necessary. OMV uses financial instruments for hedging purposes to protect the Group’s cash flow, for example from the potential negative impact of falling oil and natural gas prices in the Energy division. In the Fuels & Feedstock and Chemicals & Materials businesses, OMV is especially exposed to volatile refining and chemicals margins, natural gas prices, and CO₂ emissions certificates, as well as inventory risks. Corresponding optimization and hedging activities are undertaken in order to mitigate those risks. They include margin hedges as well as stock hedges. An optimization, trading, and hedging risk control governance system defines clear mandates including risk thresholds for such activities.

Management of interest rate risk

To balance the Group’s interest rate portfolio, loans can be converted from fixed to floating rates and vice versa according to predefined rules. OMV regularly analyzes the impact of interest rate changes on interest income and expenses from floating rate deposits and borrowings.

Management of credit risk

Significant counterparty credit risks are assessed, monitored, and controlled at the Group and segment level using predetermined credit limits for all counterparties, banks, and security providers. The procedures are governed by guidelines at OMV Group level. In light of a challenging geopolitical and economic environment with high inflation, volatile commodity prices, rising interest rates, and distorted supply chains, special attention is paid to early warning signals like changes in payment behavior. Given the events in the banking sector in the first quarter of 2023, OMV has implemented even tighter monitoring of its banking counterparties and of respective exposures in addition to its standard credit risk management processes.

Operational risks

The nature of OMV’s business operations exposes the Group to various health, safety, security, and environmental (HSSE) risks. Such risks include the potential impact of natural disasters, as well as process safety and personal security events. Other operational risks comprise risks related to the delivery of capital projects or legal/regulatory non-compliance. All operational risks are identified, analyzed, monitored, and mitigated in accordance with the Group’s defined risk management process. Control and mitigation of assessed risks take place at all organizational levels using clearly defined risk policies and responsibilities. The key Group risks are governed centrally to ensure the Group’s ability to meet planning objectives through corporate directives, including those relating to health, safety, security, environment, legal matters, compliance, human resources, and sustainability.

Project risks

In implementing its Strategy 2030, OMV will invest in both organic and inorganic growth projects following a mature project risk management process, identifying, analyzing, and monitoring project risks on a regular basis. OMV has vast experience in managing major capital projects and mitigating project risks.

By way of example, the execution of major onshore and offshore projects in Romania, Norway, and the UAE may be affected by changes to the respective regulatory or fiscal frameworks, by the unavailability of contractors, or the lack of qualified staff. Project costs may be negatively impacted by price inflation, labor shortages, or the disruption or reorganization of supply chains. Projects, in particular in recycling and sustainable fuels and feedstocks, may be affected by insufficient availability of required feedstock supply, by the inability to commercially scale up new technologies, or by the lack of regulatory clarity. In new business areas in particular, OMV may more often invest through partnerships and joint ventures, which may expose the Company to increased governance and credit risks and may negatively impact project execution. The effect of any of these risks may have a material adverse impact on OMV’s business, results of operations, and financial condition.

ESG risk

OMV places special emphasis on five Sustainability focus areas: Climate Change; Natural Resources Management; People; Ethical Business Practices; and Health, Safety, and Security.

IT risks

As OMV’s activities rely on information technology systems, the Group may experience disruption due to major cyber events. Security controls are therefore implemented across the Group to protect information and IT assets that store and process information. IT-related risks are assessed, monitored regularly, and managed actively with dedicated information and security programs across the organization. OT (Operational Technology) related risks are reflected in the assessment of process safety risks. Additionally, OMV recognizes the emergence of AI-related risks and is actively integrating measures within existing security controls to address potential disruptions and vulnerabilities associated with artificial intelligence.

Strategic risks

In order to identify strategic risks that might have potentially long-term effects on the Company’s objectives, OMV continuously monitors its internal and external environment.

Geopolitical and regulatory risks

OMV thoroughly monitors geopolitical developments, including the ongoing Russian war on Ukraine and any additional sanctions and countersanctions resulting from it, as well as recent attacks on Israel that have raised concerns about regional stability and their potential impact on OMV’s business activities. Nevertheless, it is important to note that, as it currently stands, OMV's operations in the MENA region remain unaffected by these developments.

In light of potential further, or even full, natural gas supply disruptions from Russia, e.g., due to discontinuation of the gas transit agreement between Ukraine and Russia, OMV has diversified both gas supply sources and gas supply routes to ensure secure energy supply to its customers. Supported by warmer than average weather in Europe, increased renewable power generation, and elevated gas price levels, households and industry have reduced gas consumption in 2023 leading to lower gas demand, and more gas in storage in Central Europe than expected. In July 2023, OMV managed to secure around 40 TWh of additional transport capacities to Austria at the transfer points Oberkappel (pipeline from Germany) and Arnoldstein (pipeline from Italy) for both the current gas year and for the period from October 1, 2023 to September 30, 2026. For the period from October 1, 2026 to September 30, 2028, OMV booked around 20 TWh of transport capacities at the aforementioned transfer points. OMV continues to closely monitor developments and regularly evaluates the potential impact on the Group’s cash flow and liquidity position.
High volatility in natural gas prices can potentially lead to peak liquidity demands to satisfy margin calls for exchange trading activities at short notice. OMV has unused committed and uncommitted credit facilities to meet such short-term requirements if needed. OMV is responding to the situation with targeted measures to safeguard the Company’s economic stability as well as the secure supply of energy.
As a direct consequence of the energy crisis in Europe, regulatory measures like regulated/capped prices for gas and power, subsidy schemes, and over-taxation or the EU solidarity contribution have been implemented in some of the countries OMV is active in. If energy prices in Europe remain at high levels, there is a risk that further regulatory and fiscal interventions may impact OMV financials.
In addition to the above-mentioned geopolitical tensions, OMV’s operations are exposed to further geopolitical risks such as the expropriation and nationalization of property, restrictions on foreign ownership, civil strife and acts of war or terrorism, and political uncertainties, for example in Libya, Yemen, or Tunisia, as well as other countries where OMV operates and has financial investments. However, OMV has extensive experience in dealing with the political environment in emerging economies. Also, possible regulatory changes may lead to disruptions or limitations in production or an increased tax burden. OMV continuously observes political and regulatory developments in all markets that affect OMV’s operations. Country-specific risks are assessed before entering new countries.

Macroeconomic risks

Geoeconomic fragmentation, trade restrictions, and disruptions to global supply chains could lead to further cost increases for OMV. Coupled with rising interest rates, this situation has the potential to also negatively impact economic growth, which in turn could affect demand for OMV’s products.

Climate change-related risks

OMV consistently evaluates the Group’s exposure to risks related to climate change, in addition to the market price risk from European Emission Allowances. Such risks comprise the potential impact of acute or chronic events like more frequent extreme weather events, systemic changes to our business model due to a changing legal framework, or substitution of OMV’s products due to changing consumer behavior. OMV recognizes climate change as a key global challenge, and therefore integrates the related risks and opportunities into the development of the Company’s business strategy. Measures implemented to manage or mitigate such risks are set out in the relevant sections of this report, particularly in Sustainability and Strategy.

Business transformation risks

Personnel risks

Through systematic employee succession and development planning, OMV’s People & Culture department aims to develop and attract suitable managerial employees to meet future growth requirements and mitigate personnel risks.

Sustainability & HSSE (Health, Safety, Security and Environment)

We are committed to building a sustainable world worth living in – for everyone. Sustainability and circularity lie at the center of our Group strategy. We aim to become a net-zero business by 2050, accelerate the energy transition, and proactively expedite the transition from a linear to a circular economy. We build positive relationships with our employees, communities, suppliers, and other stakeholders, including by addressing the social and economic effects of the transition to an environmentally sustainable economy. Our Sustainability Framework is built around the three pillars Environmental, Social, and Governance (ESG).
Our Strategy 2030 is underpinned by this Sustainability Framework, with all business decisions being guided by our ambition to become a net-zero business. Within this Sustainability Framework, we have established five strategic focus areas: Climate Change, Natural Resources Management, Health, Safety, and Security, People, and Ethical Business Practices. For each of these focus areas, we have formulated concrete commitments, targets, and actions to be achieved by 2030, which represent OMV’s contribution to the UN 2030 Agenda for Sustainable Development. Read more in the Sustainability Report.
Health, safety, security, and protecting the environment are key values at OMV. The integrity of OMV’s operating facilities, loss prevention, proactive risk management, and environmental protection are essential for attaining OMV’s HSSE mission of “Committed to Zero Harm – Protect People, Environment, and Assets.”

This vision is embedded in the HSSE Policy, which is OMV’s public commitment to health, safety, security, and the environment. Our chemicals subsidiary, Borealis, is committed to implementing the guidelines of the Responsible Care Global Charter, which is the chemical industry’s voluntary initiative aimed at continuous improvement in health, safety, and environmental performance. The OMV Group HSSE strategy sets out the mid-term strategic goals and targets to support the Group’s business strategy. The HSSE Strategy 2025 is based on a framework that was developed in 2012 and has since been regularly updated. As the OMV Group comprehensively updated its transformational business strategy (OMV Strategy 2030) in 2022 and bearing in mind the substantial changes ongoing in the regulatory environment, a major review of the HSSE strategy was conducted during 2023, resulting in an updated HSSE Strategy 2030. While proven HSSE management concepts will be continued and further developed, it was identified that HSSE culture, contractor management, and parts of safety and environmental management need a stronger and updated strategic focus over the coming years.
In 2023, the combined Lost Time Injury Rate (LTIR) for OMV employees and contractors was 0.87 (2022: 0.78), and our combined Total Recordable Injury Rate (TRIR) was 1.37 (2022: 1.23). Regrettably, one of our contractor employees in Romania lost their life in 2023 while working for OMV. The contractor colleague in Romania died from injuries sustained during a fire.
The health and well-being of employees are fundamental to the success of any company, as they serve as a foundation for ensuring employee productivity. OMV continued its long tradition of offering health and prevention programs, such as cardiovascular disease prevention programs, ultrasound checks and other voluntary health checks, vaccinations (especially against flu and in some countries COVID-19), and virtual health hours, such as ideas for a healthy work-life balance or first aid measures that go far beyond legal requirements.
Also in 2023, great effort went into important safety-related activities to reduce risks and reverse the negative trend we see in OMV as a lingering effect of the COVID-19 pandemic and a clear increase in industry activity with a shortage of qualified personnel exacerbated by the geopolitical situation:

_►We have rolled out our harmonized Life-Saving Rules (LSR) across the OMV Group. This simple set of rules helps prevent fatal and severe accidents and applies to all employees and contractors. During an intensive campaign with face-to-face workshops led by line management, all employees and contractor employees were trained. Furthermore, the LSR were presented and discussed regularly during awareness programs, workshops, management walk-arounds, and safety walks, as well as during various meetings. Practical LSR trainings will be continued and delivered systematically in the Safety Centers, for which the training concept and material have been fully reviewed and updated. Based on this, existing Safety Centers will be redeveloped, and new ones created in 2024.
_►All incidents at level 3 and higher plus HiPos were investigated, and lessons learned were communicated throughout the organization. Improvement initiatives were developed and closely monitored using our HSSE reporting tool.
_►To improve the incident investigation process and ensure that the new incident investigators get the right support, we launched an “Incident Investigators Community of Practice Experience Sharing” session across the whole OMV Group in 2023. This will be continued in 2024 on a regular basis.
_►In 2023, action close out focus audits were performed to ensure the continuous improvement process. The specific objectives were to audit the close out of actions resulting from incident investigations and to audit the sharing within the organization and with contractors of (technical/safety) alerts and lessons learned.
_►Contractor HSSE management is key to the OMV Group’s safety performance. We continued the training for beneficiaries and functional experts through e-learning sessions and webinars, and we updated the internal regulations framework based on practical experience. We also held strategic supplier meetings with prime contractors to share information, experiences, and expectations. A new quarterly experience exchange forum was established to support the business across the OMV Group with information and best practice sharing related to supplier and contractor management.
_►Global HSSE training for employees and managers was delivered in the form of face-to-face training sessions, and a basic course was also offered as an e-learning course consisting of 13 modules, available in English, German, and Romanian.
_►The leading process safety performance indicators (PSPI) were updated for the OMV Group, and a dashboard was developed for management information.
_►Periodic Group Process Safety Committee meetings with Executive Board member involvement took place, during which process safety performance, achievements, and challenges were on the agenda.
_►A register containing risk reduction measures identified in various process hazard analyses (PHAs), assessments, and safety studies was established in each operated production unit and was populated with data, which also included Borealis sites.
_►A cloud-based software tool for process hazard analyses, recommendation tracking, and workflows was rolled out at OMV.
_►We supported and followed up on the implementation of process safety road maps across OMV’s ventures, assets, and refineries. In our Integrated Risk Register, we continued to analyze and prioritize process safety risks to ensure that investments effectively lead to a significant reduction in risks.
_►The Group-wide process safety knowledge- and experience-sharing platform was continued, with quarterly half-day events where up to 200 individuals participate in virtual meetings and presentations, including contributions from senior management.
_►The OMV Group HSSE reporting tool was further developed. This is a key step in our ongoing harmonization and enables us to report in one single system across the OMV Group.

Research and Development

OMV Aktiengesellschaft is not performing research and development projects itself, but coordinates the group-wide research and development projects.

Outlook

Also for the financial year 2024 OMV Aktiengesellschaft - besides a slightly negative operating result - expects positive profit contributions from its investments held.
The financial performance of OMV Aktiengesellschaft will continue to mostly reflect the structural development of OMV Group as well as the actual market environment.

Market environment

In 2024, OMV expects the average Brent crude oil price to be around USD 80/bbl (2023: USD 83/bbl). For 2024, the average realized gas price is anticipated to be around EUR 25/MWh (2023: EUR 29/MWh), with a THE price forecast of between EUR 30/MWh and 35/MWh (2023: EUR 41/MWh).

Group

In 2024, organic CAPEX¹⁸ is projected to come in at around EUR 3.8 bn (2023: EUR 3.7 bn), including non-cash effective CAPEX related to leases of around EUR 0.2 bn.

Chemicals & Materials

In 2024, the ethylene indicator margin Europe is expected to be around EUR 490/t (2023: EUR 507/t). The propylene indicator margin Europe is forecast at around EUR 370/t (2023: EUR 389/t).
In 2024, the steam cracker utilization rate in Europe is expected to be around 85% (2023: 80%).
In 2024, the polyethylene indicator margin Europe is forecast to be around EUR 320/t (2023: EUR 322/t). The polypropylene indicator margin Europe is expected to be around EUR 320/t (2023: EUR 355/t).
In 2024, the polyethylene sales volumes excluding JVs are projected to be around 1.9 mn t (2023: 1.63 mn t). The polypropylene sales volumes excluding JVs are expected to be around 2.0 mn t (2023: 1.86 mn t).
Organic CAPEX related to Chemicals & Materials is predicted to be around EUR 1.0 bn in 2024 (2023: EUR 1.2 bn).

Fuels & Feedstock

In 2024, the OMV refining indicator margin Europe is expected to be around USD 8/bbl (2023: USD 11.7/bbl).
In 2024, fuels and other sales volumes in OMV’s markets in Europe are projected to be higher than in 2023 (2023: 16.3 mn t). Commercial margins are forecast to be below those in 2023. Retail margins are forecast to be slightly below the 2023 level.
In 2024, the utilization rate of the European refineries is expected to be around 95% (2023: 85%).
Organic CAPEX in Fuels & Feedstock is forecast at around EUR 0.8 bn in 2024 (2023: EUR 1.0 bn).

Energy

OMV expects total hydrocarbon production in 2024 to be between 330 kboe/d and 350 kboe/d (2023: 364 kboe/d), depending on the timing of the divestment of the assets in Malaysia, the situation in Libya, and also due to natural decline.
Organic CAPEX for Energy is anticipated to come in at around EUR 1.9 bn in 2024 (2023: EUR 1.5 bn).
In 2024, Exploration and Appraisal (E&A) expenditure is expected to be around EUR 200 mn (2023: EUR 248 mn).

Vienna, March 5, 2024
The Executive Board

Alfred Stern m.p. Chairman of the Executive Board and Chief Executive Officer	Reinhard Florey m.p. Chief Financial Officer
Martijn van Koten m.p. Executive Vice President Fuels & Feedstock	Daniela Vlad m.p. Executive Vice President Chemicals & Materials
Berislav Gaso m.p. Executive Vice President Energy

Auditor’s Report¹⁹

Report on the Financial Statements

Audit Opinion

We have audited the financial statements of

OMV Aktiengesellschaft, Vienna

which comprise the Balance Sheet as at 31 December 2023, the Income Statement for the year then ended, and the Notes.
In our opinion, the financial statements comply with the legal requirements and present fairly, in all material respects, the financial position of the Company as at 31 December 2023 and its financial performance for the year then ended, in accordance with Austrian Generally Accepted Accounting Principles and other legal or regulatory requirements.

Basis for our Opinion

We conducted our audit in accordance with Regulation (EU) 537/2014 ("AP Regulation") and Austrian Standards on Auditing. These standards require the audit to be conducted in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the "Auditor’s Responsibilities" section of our report. We are independent of the Company, in accordance with Austrian company law and professional regulations, and we have fulfilled our other responsibilities under those relevant ethical requirements. We believe that the audit evidence we have obtained up to the date of the auditor’s report is sufficient and appropriate to provide a basis for our audit opinion on this date.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements. These matters were addressed in the context of our audit of the financial statements as a whole, however, we do not provide a separate opinion thereon.

Recoverability of shares in and loans to affiliated companies.

Refer to notes "Accounting and valuation policies", 1 " Fixed assets" and 12 " Financial income and expense".

Risk for the Financial Statements

The carrying value of shares in affiliated companies amounts to EUR 13,020 mn as of 31 December 2023, after an impairment in the amount of EUR 160 mn in 2023. The carrying value of loans to affiliated companies amounts to EUR 2,562 mn as of 31 December 2023.
The shares in and loans to affiliated companies are subject to an impairment assessment on each balance sheet date. If necessary, impairment calculations are carried out. The results of these calculations are highly dependent on estimates of future cash flows and assumptions for determining discount rates.
There is a risk for the financial statements that the valuation of shares in and loans to affiliated companies is misstated.

Our Response

We assessed the recoverability of the relevant shares in and loans to affiliated companies as follows:

_►We obtained a process understanding and evaluated the design and implementation of key internal controls regarding the impairment assessment.
_►We assessed the appropriateness of the valuation methods used for the impairment calculations.
_►We compared the future cash flows included in the impairment calculations with the approved mid-term planning.
_►With the assistance of our valuation specialists, we assessed the appropriateness of the assumptions used to determine the discount rates by comparing them with market and industry-specific benchmarks.
_►We verified the mathematical accuracy of the impairment calculations.
_►We assessed the adequacy of the disclosures in the financial statements.

Other Matter

The audit of the financial statements of OMV Aktiengesellschaft as of 31 December 2022 was performed by another auditor, who expressed an unqualified audit opinion on the financial statements dated 9 March 2023.

Other Information

Management is responsible for other information. Other information is all information provided in the annual report, other than the financial statements, the management report and the auditor’s report.
Our opinion on the financial statements does not cover other information and we do not provide any kind of assurance thereon.
In conjunction with our audit, it is our responsibility to read this other information and to assess whether, based on knowledge gained during our audit, it contains any material inconsistencies with the financial statements or any apparent material misstatement of fact.
If, based on the work we have performed, we conclude that there is a material misstatement of fact in other information, we must report that fact. We have nothing to report in this regard.

Responsibilities of Management and the Audit Committee for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with Austrian Generally Accepted Accounting Principles and other legal or regulatory requirements and for such internal controls as management determines are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Management is also responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The audit committee is responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our audit opinion. Reasonable assurance represents a high level of assurance, but provides no guarantee that an audit conducted in accordance with AP Regulation and Austrian Standards on Auditing (and therefore ISAs), will always detect a material misstatement, if any. Misstatements may result from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with AP Regulation and Austrian Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit.
Moreover:

_►We identify and assess the risks of material misstatements in the financial statements, whether due to fraud or error, we design and perform audit procedures responsive to those risks and obtain sufficient and appropriate audit evidence to serve as a basis for our audit opinion. The risk of not detecting material misstatements resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.
_►We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.
_►We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
_►We conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our audit report to the respective note in the financial statements. If such disclosures are not appropriate, we will modify our audit opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
_►We evaluate the overall presentation, structure and content of the financial statements, including the notes, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
_►We communicate with the audit committee regarding, amongst other matters, the planned scope and timing of our audit as well as significant findings, including any significant deficiencies in internal control that we identify during our audit.
_►We communicate to the audit committee that we have complied with the relevant professional requirements in respect of our independence, that we will report any relationships and other events that could reasonably affect our independence and, where appropriate, the related safeguards.
_►From the matters communicated with the audit committee, we determine those matters that were of most significance in the audit i.e. key audit matters. We describe these key audit matters in our auditor’s report unless laws or other legal regulations preclude public disclosure about the matter or when in very rare cases, we determine that a matter should not be included in our audit report because the negative consequences of doing so would reasonably be expected to outweigh the public benefits of such communication.

Report on Other Legal and Regulatory Requirements

Management Report

In accordance with Austrian company law, the management report is to be audited as to whether it is consistent with the financial statements and prepared in accordance with legal requirements.
Management is responsible for the preparation of the management report in accordance with Austrian company law and other legal or regulatory requirements.
We have conducted our audit in accordance with generally accepted standards on the audit of management reports.

Opinion

In our opinion, the management report is consistent with the financial statements and has been prepared in accordance with legal requirements. The disclosures pursuant to Section 243a UGB are appropriate.

Statement

Based on our knowledge gained in the course of the audit of the financial statements and our understanding of the Company and its environment, we did not note any material misstatements in the management report.

Additional Information in accordance with Article 10 AP Regulation

We were elected as auditors at the Annual General Meeting on 31 May 2023 and were appointed by the supervisory board on 5 June 2023 to audit the financial statements of the Company for the financial year ending on 31 December 2023.
We have been auditors of the Company since the financial statements at 31 December 2023.
We declare that our opinion expressed in the "Report on the Financial Statements" section of our report is consistent with our additional report to the audit committee, in accordance with Article 11 AP Regulation.
We declare that we have not provided any prohibited non-audit services (Article 5 Paragraph 1 AP Regulation) and that we have ensured our independence throughout the course of the audit, from the audited Company.

Engagement Partner

The engagement partner is Mr Karl Braun.

Vienna
March 6, 2024
KPMG Austria GmbH
Wirtschaftsprüfungs- und Steuerberatungsgesellschaft

Karl Braun m.p.
Wirtschaftsprüfer
(Austrian Chartered Accountant)

Financial Statements
Balance sheet as of December 31, 2023

Assets

				Note	in EUR	in EUR 1,000

					2023	2022
A.	Fixed assets			1
	I.	Intangible assets
		1.	Concessions, industrial property rights and similar rights and benefits and licenses derived therefrom		14,667,233	16,117
		2.	Payments on accounts		177,200	530
					14,844,433	16,647
	II.	Tangible assets
		1.	Land and buildings on third party land		15,951	976
		2.	Other fixtures and fittings, tools and equipment		11,317,057	9,420
					11,333,008	10,397
	III.	Financial assets
		1.	Shares in affiliated companies		13,019,781,909	13,173,471
		2.	Loans to affiliated companies		2,562,165,537	4,058,759
		3.	Securities held as fixed assets		4,506,435	4,506
		4.	Other loans		20,354	39
					15,586,474,234	17,236,775
					15,612,651,676	17,263,820
B.	Current assets
	I.	Receivables and other assets		2
		1.	Trade receivables		380,000	—
			thereof with a remaining maturity of more than one year		—	—
		2.	Receivables from affiliated companies		1,573,288,758	3,478,078
			thereof with a remaining maturity of more than one year		—	—
		3.	Other receivables and assets		73,651,537	21,665
			thereof with a remaining maturity of more than one year		—	—
					1,647,320,295	3,499,744
	II.	Securities and interests
		1.	Other securities		244,550,076	273,375
	III.	Cash on hand, checks, cash at banks			1,658,306,939	2,570,616
					3,550,177,311	6,343,734
C.	Prepaid expenses and deferred charges				25,151,538	29,727
D.	Deferred tax assets			3	2,393,847	4,484
					19,190,374,372	23,641,765

Liabilities

				Note	in EUR	in EUR 1,000

					2023	2022
A.	Shareholders’ equity			4
	I.	Nominal capital called up and paid in
			Nominal capital subscribed		327,272,727	327,273
			Nominal amount of treasury shares		–142,007	–202
					327,130,720	327,071
	II.	Capital reserves
		1.	Appropriated reserve		1,749,677,316	1,748,013
		2.	Unappropriated reserve		333,728	334
					1,750,011,044	1,748,347
	III.	Capital reserve for share based payments			13,808,980	11,890
	IV.	Revenues reserves
		1.	Unappropriated reserve		2,722,151,936	2,722,342
		2.	Reserve for treasury shares		142,007	202
					2,722,293,943	2,722,544
	V.	Unappropriated income			1,813,316,667	1,994,496
			thereof income brought forward		342,485,861	251,327
					6,626,561,353	6,804,348
B.	Provisions			5
	1.	Provisions for severance payments			10,939,935	11,361
	2.	Provisions for pensions			59,796,067	64,628
	3.	Provisions for taxes			56,854,352	26,015
	4.	Other provisions			48,833,134	73,411
					176,423,487	175,415
C.	Liabilities			6
	1.	Bonds			8,250,000,000	9,500,000
		thereof with a remaining maturity of less than one year			500,000,000	1,250,000
		thereof with a remaining maturity of more than one year			7,750,000,000	8,250,000
	2.	Amounts due to banks			154,044,802	100,043
		thereof with a remaining maturity of less than one year			54,044,802	43
		thereof with a remaining maturity of more than one year			100,000,000	100,000
	3.	Trade payables			36,369,635	38,476
		thereof with a remaining maturity of less than one year			36,369,635	38,476
		thereof with a remaining maturity of more than one year			—	—
	4.	Payables to affiliated companies			3,695,823,017	6,658,040
		thereof with a remaining maturity of less than one year			3,695,823,017	6,658,040
	5.	Other liabilities			251,152,077	365,444
		thereof with a remaining maturity of less than one year			235,231,022	345,476
		thereof with a remaining maturity of more than one year			15,921,055	19,968
	thereof with a remaining maturity of less than one year				4,521,468,477	8,292,035
	thereof with a remaining maturity of more than one year				7,865,921,055	8,369,968
					12,387,389,532	16,662,002
					19,190,374,372	23,641,765

Income statement

Income statement

				Note	in EUR	in EUR 1,000

					2023	2022
1.	Sales			7	268,857,279	246,608
2.	Other operating income			8
	a)	Income from the disposal of fixed assets			9,425,768	799
	b)	Income from the reversal of provisions			950,275	3,224
	c)	Other			1,102,006	546
					11,478,048	4,568
3.	Expenses for materials and purchased services			9
	a)	Expenses for materials			–325,876	–368
	b)	Expenses for purchased services			–62,881,402	–59,933
					–63,207,278	–60,302
4.	Personnel expenses			10
	a)	Salaries			–131,031,777	–115,145
	b)	Social benefits			–37,030,156	–43,931
		thereof expenses for pensions			–9,414,915	–18,355
		aa)	thereof expenses for severance payments and contributions to staff provision funds		–2,584,756	–3,843
		bb)	thereof expenses for statutory social security, payroll- related taxes and mandatory contributions		–23,736,586	–20,633
					–168,061,933	–159,076
5.	Depreciation and amortization
	a)	of fixed intangible and tangible assets			–9,151,767	–17,325
		thereof impairment			–303,516	–5,994
6.	Other operating expenses			11
	a)	Taxes not included in Taxes on income			–1,183,385	–960
	b)	Other			–87,740,910	–78,115
					–88,924,296	–79,075
7.	Subtotal of items 1 to 6 (Operating Result)				–49,009,946	–64,602
8.	Income from investments				1,587,990,404	2,688,614
	thereof affiliated companies				1,584,788,749	2,683,480
9.	Income from loans held as financial assets				191,246,552	175,920
	thereof affiliated companies				191,182,156	175,909
10.	Other interest and similar income				594,586,557	728,808
	thereof affiliated companies				375,681,927	238,800
11.	Income from the disposal and write-up of financial assets				—	3,418
	thereof write-up				—	3,142
12.	Expenses arising from financial assets				–159,895,404	–731,407
	thereof impairments				–159,891,279	–125,260
	thereof affiliated companies				–159,895,404	–731,407
13.	Interest and similar expenses				–788,011,336	–1,012,459
	thereof concerning affiliated companies				–229,032,270	–229,694
14.	Subtotal of items 8 to 13 (Financial result)			12	1,425,916,773	1,852,894
15.	Profit before taxation (subtotal of lines 7 and 14)				1,376,906,827	1,788,292
16.	Taxes on income			13	93,923,979	–45,122
	thereof deferred taxes				–2,202,949	–1,830
17.	Profit after taxation				1,470,830,806	1,743,169
18.	Income brought forward from previous years				342,485,861	251,327
19.	Unappropriated retained income				1,813,316,667	1,994,496

Notes

The accounts of OMV Aktiengesellschaft, Vienna, as of December 31, 2023 have been drawn up in accordance with the current version of the Austrian Commercial Code (ACC) as amended and in compliance with the general standard to provide a true and fair view of the assets, liabilities, financial position and earnings of the company.
The valuation of assets and liabilities is based on the principle of individual valuation assuming going concern.
The measures to address the climate crisis affect OMV AG to the extent that the material assets and income are related to investments in subsidiaries that are affected by significant uncertainties around the changes in the mix of energy sources over the next 30 years, particularly in the areas of Exploration & Production and Refining & Marketing.
OMV has considered the short- and long-term effects of climate change and energy transition in preparing the financial statements. In 2022, OMV defined the first time concrete short-, medium-, and long-term targets for its emissions reductions and committed to becoming a net-zero emissions company by 2050.
The significant accounting estimates performed by management incorporate the future effects of OMV’s own strategic decisions and commitments on having its portfolio adhered to the energy transition targets, short and long-term impacts of climate risks and energy transition to lower carbon energy sources together with management’s best estimate on global supply and demand, including forecasted commodities prices.
OMV’s mid term planning (MTP) is built on a scenario developed by the internal Market Intelligence department and assumes that all decarbonization pledges announced by governmens around the world are implemented in full and on time. In this scenario, the temperature rise by 2100 will be limited to 1.7°C with a probability of 50%. The underlying demand and price developments of fossil commodities are in line with the IEA APS scenario.²⁰
Based on this scenario, expectations about the future demand and prices for the relevant commodities were developed. These estimates are used for the measurement of the investments in the subsidiaries.
The attack of Russia on Ukraine on February 24, 2022, led to developments that had a significant impact on the financial statements primarily in connection with direct and indirect investments in subsidiaries which are active in the gas business in the Energy segment and are linked to OMV Aktiengesellschaft via cash pooling and profit and loss transfer agreements.
The management does not currently see the going concern of the company as being threatened by the climate crisis and the Ukraine crisis and will continue to monitor the effects of aspects of climate change and the energy transition in the future.
Taking into account the principle of prudence, the company only reported the profits realized at the balance sheet date. All identifiable risks and impending losses are taken into account.
As the parent company of the OMV Group, OMV Aktiengesellschaft also prepares separate consolidated financial statements in accordance with International Financial Reporting Standards (IFRSs). The consolidated financial statements are deposited at the Vienna Commercial Court (Commercial Register Number FN 93363z) and are published on the Internet.
The detailed disclosures are shown in the notes to the accounts. The total cost format is used for the presentation of the income statement.
The annual financial statements were prepared in euro (EUR). The presentation in the notes is in EUR 1,000 as well as EUR thousand, which may result in rounding differences.

Accounting and valuation policies

Intangible and tangible assets are capitalized at cost and amortized/depreciated on a straight-line basis.
Depreciation is based on the following useful economic lives:

Category

	Useful life
Intangible assets	4-5 years
Buildings on third party land	10-15 years
Machines and mechanical systems	4-10 years
Other fixtures and fittings, tools and equipment	4-10 years

In accordance with the relevant fiscal law provisions, a whole year’s depreciation is recognized for additions in the first half of the year, and half a year’s depreciation for additions in the second half.

Sustained and material impairments of fixed assets in excess of scheduled depreciation are recognized by write-downs.
Low-value assets up to EUR 1,000 (2022: EUR 800) are capitalized and fully written off in the year of acquisition, and are shown as additions and disposals in the statement of fixed assets.
Financial assets are carried at acquisition cost less any material impairment. Securities held as fixed assets are carried at the lower of cost or market value at the last trade date of the year. If the reasons for a previous impairment no longer apply, a write-up in the amount of the increase in value is made.
Accounts receivable and other assets are stated at cost. Non-interest bearing receivables with maturities of over one year are discounted. Foreign currency receivables are valued at the EUR reference rate of the European Central Bank on the acquisition date or at the lower EUR reference rate of the European Central Bank on the balance sheet date. All recognizable risks are accounted for by valuation allowances.
Securities and shares are stated at the lower of cost or fair value on the balance sheet date.
On the balance sheet deferred taxes are reported either under deferred tax assets or provisions for taxes and in the income statement under the item Taxes on income. A tax group was formed with effect from January 1, 2005, under section 9 KStG (Corporate Tax Act), with OMV Aktiengesellschaft as the top-tier corporation. OMV Aktiengesellschaft forms a tax group in accordance with section 9 of the Austrian Corporate Income Tax Act 1988 (KStG), which aggregates the taxable profits and losses of all the Group’s main subsidiaries in Austria and possibly arising losses of one foreign subsidiary (OMV AUSTRALIA PTY LTD). Due to group taxation, tax group members that make profits pay OMV Aktiengesellschaft tax contributions equal to the corporate tax attributable to those profits. If a tax group member with a shareholding of 100% makes an annual tax loss, OMV Aktiengesellschaft pays it a tax contribution of 24% of the transferred tax loss or the applicable corporate tax rate if different. For tax group members with a shareholding below 100% tax losses are allocated into an internal tax loss carryforward. Within this tax group, OMV Aktiengesellschaft retains the profits and losses of 10 of its domestic subsidiaries on the basis of profit and loss pooling agreements. Furthermore, OMV Aktiengesellschaft has a tax pooling agreement with all tax group companies.
The treatment of deferred tax is based on the balance sheet liability method. Recognition of deferred tax assets and liabilities is mandatory if there are temporary differences between the carrying amounts for statutory accounting and tax purposes. In principle, a fiscal option for recognizing tax loss carryforwards as deferred tax assets exists,which is not exercised.
The nominal value of the treasury shares acquired is openly deducted from the capital stock in accordance with section 229 paragraph 1a ACC. The difference between the nominal amount and the acquisition cost is offset against the revenue reserves.
OMV Aktiengesellschaft has both defined contribution and defined benefit pension plans. In the case of defined contribution plans, OMV has no obligations beyond payment of the agreed premiums, and no provision is therefore recognized. In contrast, participants in defined benefit plans are promised pensions at certain levels. Defined benefit pension obligations are accounted for by setting up provisions for pensions, or by means of payments to an external pension fund. The risks associated with these defined benefit pension plans remain with OMV.
Provisions for pensions, severance payments and jubilee payments are calculated using the projected unit credit method, which divides the costs of the estimated benefit entitlements over the whole period of employment, and takes future increases in remuneration into account. The actuarial gains and losses for the current financial year are disclosed under personnel expenses or other operating income, depending on the overall development of the provision.
Expenses from accrued interests for pension, severance and jubilee provisions together with income from pension plan assets are disclosed as part of financial income and expense.
Payments for defined pension and severance contribution plans are reported as personnel expenses.
Provisions for personnel reduction schemes are recognized with the settlement amount if a detailed plan has been approved by management prior to balance sheet date, and an irrevocable commitment is thereby established.
Provisions and long-term liabilities are measured at the settlement amounts, and projected cost increases are therefore taken into account. Provisions with recognition periods of more than one year are discounted at the market interest rate.
All risks recognizable and uncertain liabilities are provided for according to the best estimate and reported under other provisions.
Liabilities are stated at the settlement amount. Foreign currency liabilities are valued at the EUR reference rate of the European Central Bank on the date of origin or at the higher EUR reference rate of the European Central Bank on the balance sheet date.
The currency hedges concluded both with banks and with affiliates (on behalf of the affiliates) form valuation units from OMV Aktiengesellschaft’s perspective. They are therefore not disclosed in the books of OMV Aktiengesellschaft but in the affiliates’ financial statements.

Share-based payments

Long-Term Incentive (LTI) plans

LTI plans with similar conditions are granted annually to the Executive Board and selected Senior Managers in the Group. On the vesting date, shares will be granted to the participants. The number of bonus shares is determined depending on the achievement of defined performance criteria. The performance criteria and their corresponding typical weightings for the Executive Board members are defined in the Remuneration Policy, and as of 2022 are as follows: Relative Total Shareholder Return (30%), Clean CCS (Current Cost of Supply) ROACE (40%), ESG targets (30%). Based on predefined criteria (e.g., fatalities, TRIR, process safety – also in comparison to industry benchmarks), a Health & Safety Malus of between 0.8 and 1.0 is applied to the overall target achievement for Executive Board members. In case of severe incidents, the Remuneration Committee may reduce the payout to zero. For Senior Managers, as of 2022, the following performance criteria apply: Relative Total Shareholder Return (30%), Free Cash Flow (35%), and ESG targets (35%). The defined performance criteria may not be amended during the performance period of the LTI plans. However – in order to maintain the incentivizing character of the program –the responsible governing body for Senior Managers has the discretion to adjust the threshold/ target/ maximum levels of the Free Cash Flow, in case of material changes in external factors such as oil and gas prices. The adjustment can be made in both directions.
Disbursement is made in cash or in shares. Executive Board members and Senior Managers as active participants of the plans are required to build up an appropriate volume of shares and to hold those shares until retirement or departure from the company. For Senior Managers, if the eligibility of the LTI plan lapses but they are still in active employment with the company, the shareholding requirement expires when the last LTI plan is paid out. The shareholding requirement is defined as a percentage of the annual gross base salary for the Executive Board, and as a percentage of the respective Target Long-Term Incentive for Senior Managers. Executive Board members have to fulfill the shareholding requirement within five years after the initial respective appointment. Until fulfillment of the shareholding requirement, disbursement takes the form of shares whilst thereafter the plan participants can decide between cash or share settlement. As long as the shareholding requirements are not fulfilled the granted shares after deduction of taxes are transferred to a trustee deposit, managed by the Company.
For payments in shares the grant date fair values are spread as expenses over the three years performance period with a corresponding increase in shareholders’ equity. In the case of assumed cash-settlements a provision is made for the expected future expenses of the LTI plans on the statement of financial position date based on fair values.
A discount rate of 1.49% was used for the provision calculations (2022: 1.13%).

Long-Term Incentive Plans

	2023 plan	2022 plan	2021 plan	2020 plan
Start of plan	01/01/2023	01/01/2022	01/01/2021	01/01/2020
End of performance period	12/31/2025	12/31/2024	12/31/2023	12/31/2022
Vesting date	03/31/2026	03/31/2025	03/31/2024	03/31/2023
Shareholding requirement
Executive Board Chairman	200% of annual gross base salary	200% of annual gross base salary	200% of annual gross base salary	200% of annual gross base salary
Executive Board Deputy Chairman	175% of annual gross base salary	175% of annual gross base salary	175% of annual gross base salary	175% of annual gross base salary
Other Executive Board members	150% of annual gross base salary	150% of annual gross base salary	150% of annual gross base salary	150% of annual gross base salary
Senior managers	75% of the respective Target Long- Term Incentive	75% of the respective Target Long- Term Incentive	75% of the respective Target Long- Term Incentive	75% of the respective Target Long- Term Incentive
Expected shares as of December 31, 2023 (OMV Group)	357,842	287,735	501,677	—
Maximum shares as of December 31, 2023 (OMV Group)	761,728	674,776	794,894	—
Fair value of plan (in EUR 1,000) as of December 31, 2023 ¹ (OMV Group)	13,823	11,400	20,127	—
Provision (in EUR 1,000) as of December 31, 2023	544	1,930	5,706	—

¹ Excluding incidental wage costs

Equity Deferral

The Equity Deferral serves as a long-term compensation instrument for the members of the Executive Board that promotes retention and shareholder alignment in OMV. It combines the interests of management and shareholders via a long-term investment in restricted shares. The holding period of the Equity Deferral is three years from vesting. The plan also seeks to prevent inadequate risk-taking.
The performance criteria and their typical weightings for the Executive Board are defined in the Remuneration Policy and are as follows: Reported Net Income (40%), Free Cash Flow (30%), Operational target (15%), and ESG target (15%). Based on predefined criteria (e.g., fatalities, TRIR, and process safety – also in comparison to industry benchmarks), a Health & Safety Malus of between 0.8 and 1.0 is applied to overall target achievement. In case of severe incidents, the Remuneration Committee may reduce the payout to zero.
The Annual Bonus is capped at 180% of the target Annual Bonus. A minimum of one-third of the Annual Bonus is granted in shares. The determined bonus achievement is settled on March 31 following the end of the period whereby at the statement of financial position date the target achievements and the share price is estimated (the latter on the basis of market quotes).
Given the volatility of commodity prices and market conditions inherent to the industry, the variable remuneration plans give the Remuneration Committee the authority (in line with general practices in the Oil and Gas industry) to adjust the threshold, target, and maximum levels of the financial targets based on oil/gas prices and EUR/USD exchange rates compared with assumptions at the time the targets were set. Adjustments can be applied in both directions. They are determined by the Remuneration Committee and published in the Remuneration Report. The granted shares after deduction of taxes are transferred to a trustee deposit, managed by the Company, to be held for three years.
The following table refers to OMV Group:

Personal investment held in shares¹

	12/31/2023
Active Executive Board members
Stern	24,434
Florey	49,930
van Koten	4,385
Former Executive Board members
Pleininger²	14,933
Skvortsova³	6,636
Seele⁴	12,190
Gangl⁵	16,680
Total - Executive Board	129,188
Other Senior Managers	255,539
Total personal investment	384,727

¹ Personal investment held in shares refer to open LTI plans and Equity Deferral if shares are held in the OMV trustee deposit.

²Johann Pleininger resigned from the Executive Board effective December 31, 2022.

³ Elena Skvortsova resigned from the Executive Board effective October 31, 2022.

⁴ Rainer Seele resigned from the Executive Board effective August 31, 2021.

Total expenses

In 2023 expenses related to share-based payment transactions were as follows.

Expenses related to share-based payment transactions
In EUR 1,000
	2023¹	2022¹
Total expenses arising from share-based payment transactions	5,310	7,119
thereof cash settled	1,486	3,323
thereof equity settled	3,824	3,796

¹thereof EUR 950 thousand (2022: EUR 1,585 thousand) are included in item Income from the release of provisions

Notes to the balance sheet

1 Fixed assets

Movements in fixed assets in 2023 are shown in the statement of fixed assets. The Land and buildings item includes land valued at EUR nil (2022: EUR 611 thousand).
Commitments arising from the use of off-balance sheet tangible assets were as follows:

Commitments arising from the use of off-balance sheet tangible assets
In EUR 1,000
	2023	2022
Maturing in one year	265	440
Maturing in the next five years	827	969

Loans
In EUR 1,000
	2023	2022
Domestic
OMV Exploration & Production GmbH	1,962,166	3,325,203
OMV Finance Services GmbH	—	733,556
OMV Downstream GmbH	600,000	—
Erste gemeinnützige Wohnungsgesellschaft mbH	20	39
Total	2,562,186	4,058,798

Loans with maturities of up to one year amounted to EUR 600,019 thousand (2022: EUR 896,612 thousand).
In the business year a new loan was given to OMV Downstream GmbH in the amount of EUR 600,000 thousand.
In the reporting period the following loans were repaid: OMV Exploration & Production GmbH EUR 1,363,037 thousand and OMV Finance Services GmbH EUR 733,556 thousand.
The loan granted to BSP Bratislava-Schwechat Pipeline GmbH in the amount of EUR 1,646 thousand (fully impaired since 2020) was written off in 2023.

2 Accounts receivable and other assets

Accounts receivable and other assets
In EUR 1,000
	2023		2022
	≤1 year	>1 year	≤1 year	>1 year
Trade Receivables	380	—	—	—
Receivables from affiliated companies	1,573,289	—	3,478,078	—
thereof trade	24,601	—	32,645	—
thereof financing	49,887	—	699,537	—
thereof profit pooling	1,040,869	—	2,142,235	—
thereof other	457,932	—	603,662	—
Other receivables and assets	73,652	—	21,665	—
Total	1,647,320	—	3,499,744	—

The item Other receivables and assets includes EUR 16,754 thousand (2022: EUR 20,610 thousand) in corporate tax prepayments and a receivable to banks in the amount of EUR 49,990 thousand.(2022: EUR nil).
The Other receivables and assets item includes Accrued interest receivables in the amount of EUR 5,211 thousand (2022: no material amount). This income is due after balance sheet date.

3 Deferred tax assets

Deferred taxes essentially result from different valuation rules and distribution standards. Due to sufficient taxable profits in future, deferred tax assets of EUR 2,394 thousand (2022: 4,484 thousand) were recognized in the reporting period.

The valuation of deferred taxes as of December 31, 2023 was done with the future tax rate of 23 % starting with the year 2024.

The fiscal option to recognize deferred tax assets relating to loss carry forwards is not exercised.

4 Stockholders´equity

The capital stock of OMV Aktiengesellschaft consists of 327,272,727 (2022: 327,272,727) fully paid no par value shares with a total nominal value of EUR 327,272,727 (2022: EUR 327,272,727). There are no different classes of shares and no shares with special rights of control. All shares are entitled to dividends for the financial year 2023, with the exception of treasury shares held by OMV Aktiengesellschaft.
As the authorized capital granted by the Annual General Meeting on May 14, 2014 expired on May 14, 2019, the Annual General Meeting decided upon a new authorized capital on September 29, 2020. Specifically, it authorized the Executive Board until September 29, 2025 to increase the share capital of OMV with the consent of the Supervisory Board – at once or in several tranches – by an amount of up to EUR 32,727,272 by issuing up to 32,727,272 new no-par value common voting shares in bearer form in return for contributions in cash. The capital increase can also be implemented by way of indirect offer for subscription after taking over by one or several credit institutions according to Section 153 Paragraph 6 of the Austrian Stock Corporation Act. The issue price and the conditions of issuance can be determined by the Executive Board with the consent of the Supervisory Board.
Further, the Annual General Meeting authorized the Executive Board, subject to the approval of the Supervisory Board, to exclude the subscription right of the shareholders if the capital increase serves to (i) adjust fractional amounts or (ii) satisfy stock transfer programs, in particular long term incentive plans, equity deferrals or other participation programs for employees, senior employees and members of the Executive Board/management boards of the Company or one of its affiliates, or other employees stock ownership plans.
In addition, the Supervisory Board was authorized to adopt amendments to the Articles of Association resulting from the issuance of shares according to the authorized capital.
Capital reserves have been formed by the contribution of funds into OMV Aktiengesellschaft by its shareholders over and above the capital stock, on the basis of their ownership relationship
Treasury shares: The Annual General Meetings for the years 2000 to 2011 (with the exception of 2010) and 2019 approved the repurchase of treasury shares. The costs of repurchased shares have been reflected as a reduction in equity. Gains or losses on the re-issue of treasury shares (issue proceeds less acquisition cost) result in an increase or a reduction in capital reserves.

On June 2, 2021, the Annual General Meeting authorized the Executive Board for a period of five years from the adoption of the resolution, therefore, until and including June 1, 2026, subject to the approval of the Supervisory Board, to dispose of or utilize repurchased treasury shares or treasury shares already held by the Company to grant to employees, executive employees and/or members of the Executive Board/management boards of the Company or its affiliates including for purposes of share transfer programs, in particular long-term incentive plans including equity deferrals or other stock ownership plans, and to thereby exclude the general purchasing right of shareholders (exclusion of subscription rights). The authorization can be exercised as a whole or in parts or even in several tranches by the Company, by a subsidiary (Section 189a Number 7 of the Austrian Commercial Code) or by third parties for the account of the Company.

The nominal value of the treasury shares acquired is openly deducted from the capital stock in accordance with Section 229 Paragraph Number 1a Austrian Commercial Code. The difference between the nominal amount and the acquisition cost is offset against the revenue reserves. Changes in treasury shares were as follows:

Treasury shares
In EUR 1,000
	Number of shares	Cost
January 1, 2022	261,326	2,879
Disposals	–59,652	–655
December 31, 2022	201,674	2,224

Disposals	–59,667	–655
December 31, 2023	142,007	1,569

The number of shares in issue developed as follows

Number of shares in issue

	Number of shares	Treasury shares	Shares in issue
January 1, 2022	327,272,727	261,326	327,011,401
Used for share-based compensations	—	–59,652	59,652
December 31, 2022	327,272,727	201,674	327,071,053

Used for share-based compensations	—	–59,667	59,667
December 31, 2023	327,272,727	142,007	327,130,720

5 Provisions

Provisions for employee benefits are recognized in accordance with the projected unit credit method. The indexed pension commitments to employees of OMV Aktiengesellschaft were transferred to an external pension fund managed by APK-Pensionskasse AG. The defined benefit plans are generally based on years of service and the employee’s average compensation over the last five calendar years of employment.
These pension plans are non-contributory. Changes in the funding of defined benefit plans and in provisions for jubilee payments were as follows:

Development defined benefit plans and jubilee payments
In EUR 1,000
	2023			2022
	Pensions	Severance payments	Jubilee payments	Pensions	Severance payments	Jubilee payments
Present value of funded obligations	115,858	—	—	114,085	—	—
Market value of plan assets	–56,062	—	—	–49,457	—	—
Provision for funded obligations	59,796	—	—	64,628	—	—
Present value of unfunded obligations	—	10,940	8,458	—	11,361	7,139
Provision for unfunded obligations	—	10,940	8,458	—	11,361	7,139
Provision as of January 1	64,628	11,361	7,138	52,482	10,965	5,586
Expense for the year	3,237	855	1,168	12,346	2,053	1,815
Payments to funds	–8,069	—	—	–199	—	—
Benefits paid	—	–1,485	–242	—	–1,373	–173
Group transfer	—	209	394	—	–284	–89
Provision as of December 31	59,796	10,940	8,458	64,628	11,361	7,139
Interest cost	1,398	115	95	1,248	90	66
Current service cost	—	371	496	—	355	393
Expected return on plan assets	–1,415	—	—	–1,514	—	—
Recognized actuarial (gains)/losses	3,254	369	577	12,612	1,608	1,356
Expenses of defined benefit plans for the year	3,237	855	1,168	12,346	2,053	1,815

Underlying assumptions for calculating defined benefit plans and jubilee payments as of December 31:

Assumptions for calculation

	2023			2022
	Pensions	Severance	Jubilees	Pensions	Severance	Jubilees
Capital market interest rate	1.53%	1.60%	1.60%	1.25%	1.10%	1.35%
Future increases in salaries	—	5.25%¹	5.25%¹	—	4.90%¹	4.90%¹
Future increases in pensions	2.25%²	—	—	2.60%²	—	—
Long-term rate of return on plan assets	5.00%	—	—	3.00%	—	—

¹ additional increase by 5,25% (2022: 5,10%) in the first year

²additional increase by 6% (2022: no additional increase) in the first year

The biometrical basis for the calculation of provisions for pensions, severance and jubilee entitlements is provided by AVÖ 2018-P – Angestellte – Rechnungsgrundlagen für die Pensionsversicherung (Computational Framework for Pension Insurance) –, using the variant for salaried employees.
Employee turnover was estimated based on age or years of service respectively. The expected retirement age used for calculations is based on the earliest possible retirement age according to ASVG regulations.
Applying AFRAC position paper No. 27, “Personnel provisions (ACC)”, the average of the discount rate at the applicable balance sheet date and those at the six previous balance sheet dates was used to calculate the pension, severance payment and jubilee payment provisions on the basis of the average residual maturity of the total obligation.

Allocation of plan assets as of December 31

	2023		2022
	VRG IV Austria	VRG VI Austria	VRG IV Austria	VRG VI Austria
Asset category
Equity securities	18.04%	18.08%	22.93%	23.48%
Debt securities	52.53%	52.27%	46.17%	44.37%
Cash and money market investments	7.41%	7.30%	6.65%	6.62%
Other	22.02%	22.35%	24.25%	25.53%
Total	100.00%	100.00%	100.00%	100.00%

Investment policies aim to achieve an optimal investment portfolio structure and to ensure that existing entitlements are covered at all times. The investment of plan assets in Austria is governed by section 25 Austrian Pension Fund Act and the Investment Fund Act. In addition to these regulations, the investment guidelines of APK-Pensionskasse AG regulate the spread of asset allocation, the use of umbrella funds and the selection of fund managers. The plan assets are mainly invested in debt securities and shares. Alternative investments, including real estate, can total up to 25% of plan assets. Except for alternative investments, the majority of plan assets are invested in liquid active markets for which quoted prices are available. New categories of investments or the employment of a wider range of funds require the approval of the APK-Pensionskasse AG management board. Diversification of both equity and debt securities is global; however, the bulk of the debt securities is EUR-denominated or EUR-hedged.
The funds of the asset allocation and risk group VRG IV and VRG VI are invested in international equity and bond funds, alternative investment strategies (absolute return strategies, real estate and private equity) as well as money market investments. The long-term investment objective of the VRG IV and the VRG VI is to outperform their benchmark (20% global equity, 65% global bonds, 5% cash, 5% alternatives, 5% real estate) and to cover existing and future entitlement payments of the VRGs. The assets of the VRG IV and VRG VI are invested in such a manner as to ensure the security, quality, liquidity and profitability of the portfolio as a whole, as defined in the Austrian Pension Fund Act section 25. The asset allocation and the regional allocation of the VRG IV and VRG VI can and will deviate from the benchmark allocation if this is in the judgment of APK and warranted by current asset prices and/or future expected returns. To enhance the return potential, active strategies for all asset classes will be used when justified by market characteristics and/or cost/benefit considerations. The majority of the assets of the VRG IV and VRG VI are invested in liquid active markets for which quoted prices are available. An allocation to assets for which only observable but not quoted prices are available (e.g. real estate and certain absolute return strategies) is allowed when the risk return profile of such assets is believed to be favorable. Risk is managed actively and it is generally expected that the volatility and especially the drawdown risk of the VRG IV and VRG VI will be lower than that of their benchmark.
Defined benefit related contributions for 2023 to APK-Pensionskasse AG of EUR 4,975 thousand (2022: EUR 8,069 thousand) are expected for payment in the year 2024.

The provisions for taxes item comprises a corporate income tax provision for the recapture of losses by foreign tax group members at top-tier corporate level in the amount of EUR 26,015 thousand (2022: EUR 26,015 thousand).
Other provisions largely consist of the following:

Other provisions
In EUR 1,000
	2023	2022
Personnel provisions	48,659	45,084
Sundry provisions	174	28,327
Total	48,833	73,411

Personnel provisions include a provision for the Long Term Incentive Plan amounting to EUR 8,180 thousand (2022: EUR 11,549 thousand); thereof provisions with a residual term of more than one year were discounted at an interest rate of 1.49% (2022: 1.13%).
The position Other provisions does not include any other long term provisions.

6 Liabilities

Liabilities
In EUR 1,000
	2023		2022
	≤1 year	>1 year	≤1 year	>1 year
Bonds	500,000	7,750,000	1,250,000	8,250,000
Amounts due to banks	54,045	100,000	43	100,000
Accounts payable from trade	36,370	—	38,476	—
Accounts payable to affiliates	3,695,823	—	6,658,040	—
thereof trade	2,881	—	1,413	—
thereof financing	1,897,847	—	4,365,888	—
thereof cash pooling	1,564,119	—	1,189,238	—
thereof profit pooling	—	—	606,147	—
thereof other	230,976	—	495,354	—
Other liabilities	235,231	15,921	345,476	19,968
thereof taxes	165,084	—	273,705	—
thereof social security expenses (including personnel reduction plans)	7,525	15,910	7,245	19,758
Total	4,521,468	7,865,921	8,292,035	8,369,968

In the business year the EUR 500,000 thousand bond, issued in 2018 as well as the EUR 750,000 thousand bond, issued in 2020, were redeemed.
In 2022, the EUR 750,000 thousand bond, issued in 2012, was redeemed.
On December 7, 2015, OMV issued hybrid notes with an aggregate size of EUR 1,500,000 thousand, in two tranches of EUR 750,000 thousand each. Tranche 1 bore a fixed interest coupon of 5.250% until its redemption on November 30, 2021; tranche 2 bears a fixed interest coupon of 6.250% until, but excluding, December 9, 2025.
On June 19, 2018, OMV issued a hybrid bond with a size of EUR 500,000 thousand. The hybrid bears a fixed interest rate of 2.875% until, but excluding, June 19, 2024.
In September 2020, OMV issued additional hybrid bonds with a total size of EUR 1,250,000 thousand: the first tranche of EUR 750,000 thousand bears a fixed interest rate of 2,5% until, but excluding, September 1, 2026 while the second tranche with a size of EUR 500,000 thousand bears a fixed interest rate of 2,875% until, but excluding, September 1, 2029.
Accounts payable to affiliates from financing include short-term loans (money market transactions) from various subsidiary companies as part of the liquidity management of the group.

Bonds issued

	Nominal	Coupon	Date of issue	Repayment
Industrial bonds	EUR 500,000,000	1.50% fixed	April 2020	04/09/2024
	EUR 500,000,000	0.00% fixed	July 2019	07/03/2025
	EUR 1,000,000,000	1.00% fixed	December 2017	12/14/2026
	EUR 750,000,000	3.50% fixed	September 2012	09/27/2027
	EUR 500,000,000	2.00% fixed	April 2020	04/09/2028
	EUR 500,000,000	1.875% fixed	December 2018	12/04/2028
	EUR 750,000,000	0.75% fixed	June 2020	06/16/2030
	EUR 750,000,000	2.375% fixed	April 2020	04/09/2032
	EUR 500,000,000	1.00% fixed	July 2019	07/03/2034

Hybrid bonds	EUR 750,000,000		December 2015
	EUR 500,000,000		June 2018
	EUR 750,000,000		September 2020
	EUR 500,000,000		September 2020
Total	EUR 8,250,000,000

Trade payables include amounts totalling EUR 610 thousand (2022: EUR 822 thousand) that are payable to banks as part of supply chain financing.
Other liabilities include interest expenses for bonds of EUR 61,085 thousand (2022: EUR 61,540 thousand) and personnel reduction expenses of EUR 20,990 thousand (2022: EUR 24,844 thousand). These expenses will be payable after the balance sheet date.
Liabilities with maturities of more than one year include the following liabilities with maturities of more than five years: bond liabilities amounting to EUR 4,500,000 thousand (2022: EUR 5,500,000 thousand) and liabilities for personnel reduction plans amounting to EUR 3,804 thousand (2022: EUR 5,574 thousand).

Notes to the income statement

7 Sales

Sales
In EUR 1,000
	2023	2022
Domestic	220,029	202,230
Foreign	48,829	44,378
Total	268,857	246,608

The sales consist of corporate service charges paid by Group companies and of revenues generated by operational activities performed for Group companies as well as services for group companies in the areas of IT, Finance, Human Recources, Facility Management and Occupational Health.

8 Other operating income

Other operating income
In EUR 1,000
	2023	2022
Income from the disposal of fixed assets other than financial assets	9,426	799
Income from the reversal of provisions	950	3,224
Other	1,102	546
Total	11,478	4,568

The position income from disposal of fixed assets includes the gain from retirement of land in the amount of EUR 9,266 thousand (2022: EUR 722 thousand).
Other operating income includes income from the reversal of personnel provisions in the amount of EUR 950 thousand (2022: EUR 3,193 thousand). The position Other mainly includes employee deductible for office canteen, various bonuses and compensation for supervisory board functions.

9 Expenses for materials and purchased services

Expenses for materials and purchased services
In EUR 1,000
	2023	2022
Cost of materials	326	368
Cost of purchased services	62,881	59,933
Total	63,207	60,302

The expenses for purchased services mainly include services provided by third parties for ongoing activities amounting to EUR 6,453 thousand (2022: EUR 8,896 thousand) and other services provided by OMV Petrom Global Solutions SRL amounting to EUR 5,690 thousand (2022: EUR 7,175). External software services in the amount of EUR 49,419 thousand (2022: EUR 39,612 thousand) were purchased in the reporting period.

10 Personnel expenses

The item Salaries includes expenses for share based payments for which we refer to table “Expenses related to share based payment transactions” in the section Long Term Incentive (LTI) plans and Equity Deferral part of the annual bonus. Expenses related to provisions for jubilee payments amount to EUR 1,073 thousand (2022: EUR 1,749 thousand).

Expenses for severance payments, payments to occupational pension funds and expenses for pensions
In EUR 1,000
	2023	2022
Expenses for severance payments	907	2,357
Payments to employee benefit funds	1,677	1,485
Defined contribution pension expense	4,696	4,385
Defined benefit pension expense	4,719	13,970
Total	12,000	22,198

Expenses for personnel reduction programs are included in the position Expenses for severance payments amounting to EUR 167 thousand (2022: EUR 394 thousand) as well as in the position Defined benefit pension expense with an expense amounting to EUR 1,465 thousand (2022: EUR 1,358 thousand).
The breakdown of expenses for severance payments and pensions is as follows:

Expenses for severance payments and pensions
In EUR 1,000
	2023		2022
	Severance	Pensions	Severance	Pensions
Current and former members of Executive Board	209	982	218	1,062
Senior executives	152	422	295	422
Other employees	1,854	4,757	1,722	4,259
Actuarial (gains) and losses	369	3,254	1,608	12,612

11 Other operating expenses

Other operating expenses
In EUR 1,000
	2023	2022
Taxes not shown under item 16 (Taxes on income)	1,183	960
Other	87,741	78,115
Total	88,924	79,075

The Taxes item largely concerns fees paid to Austrian Financial Market Authority. Other expenses include: EUR 20,663 thousand in services delivered by OMV Group companies (2022: EUR 19,206 thousand), EUR 9,318 thousand in advertising expenditure (2022: EUR 9,363 thousand), EUR 31,567 thousand in legal and consultancy fees (2022: EUR 26,872 thousand), EUR 2,486 thousand rental expenses (2022: EUR 3,615 thousand), EUR 3,069 thousand insurance expense (2022: EUR 2,042 thousand), EUR 5,805 thousand in communication expenses (2022: EUR 5,865 thousand), leased personnel EUR 1,198 thousand (2022: EUR 1,695 thousand), EUR 2,147 thousand (2022: EUR 1,144 thousand) in travel expenses and EUR 1,612 thousand in maintenance (2022: EUR 1,361 thousand).

12 Financial income and expenses

Income from investments amounting to EUR 1,587,990 thousand (2022: EUR 2,688,614 thousand) includes EUR 1,040,869 thousand (2022: EUR 2,142,235 thousand) from profit-pooling arrangements, EUR 543,920 thousand in dividends from affiliated companies (2022: EUR 541,245 thousand) and EUR 3,202 thousand (2022: EUR 5,134 thousand) from other investment income. As of the balance sheet date, there were profit and loss pooling agreements with the following companies: OMV Solutions GmbH, OMV Downstream GmbH, OMV Insurance Broker GmbH and OMV Gas Logistics Holding GmbH.
Income from financial assets includes write-ups to financial assets amounting to EUR nil (2022: EUR 3,418 thousand), thereof EUR nil (2022: EUR 3,142 thousand) to loans and EUR nil (2022: EUR 276 thousand) write up OMV AUSTRALIA PTY LTD.
The expenses arising from financial assets include EUR nil (2022: EUR 606,147 thousand) in expenses arising from profit pooling agreements, a EUR 90,300 thousand impairment of the participation value of OMV Solutions GmbH (2022: EUR 121,000 thousand), EUR 69,200 thousand (2022: EUR 4,260) of the participation value of OMV Gas Logistic Holding GmbH as well as an impairment loss related to OMV AUSTRALIA PTY LTD in the amount of EUR 354 thousand (2022: EUR nil).

13 Taxes on income

Taxes on income
In EUR 1,000
	2023	2022
Current taxes	–96,127	43,293
thereof
allocation of provision for future tax compensation of Austrian tax group members	5,834	—
group tax member compensation	–117,928	84,442
corporate income tax group expense	25,220	–2,186
group tax member compensation from previous years	–9,253	–38,963

Deferred taxes	2,203	1,830
Total	–93,924	45,122

The reported deferred tax expense amounting to EUR 2,203 thousand (2022: EUR 1,830 thousand) mainly resulted from the reduction of deferred tax assets.
From the financial year 2024, Pillar Two legislation (“Mindestbesteuerungsgesetz”) is enacted in Austria. Similar regulations based on EU Directive 2022/2523 and the Global Anti-Base Erosion Model Rules of the OECD/G20 have been implemented in other countries in which OMV operates. Under the legislation, Group companies will be subject to a minimum taxation on profits that are taxed at an effective tax rate of less than 15%. OMV has carried out an assessment of the Group’s potential exposure to Pillar Two income taxes on the basis of the financial statements, country-by-country reporting, the most recent tax filings and mid-term planning data. Based on the assessment, no material tax expense is expected for OMV Aktiengesellschaft as the Group's ultimate parent and taxable entity in Austria.

Supplementary information

14 Interest rate risk management and derivatives

To facilitate management of interest rate risk, liabilities are analyzed in terms of fixed and floating rate borrowings, currencies and maturities. Appropriate ratios for the various categories are established, and where necessary derivative instruments are used to hedge fluctuations outside predetermined ranges.
Interest rate swaps are used from time to time to convert fixed rate debt into floating rate debt, and vice versa. In 2015 the last interest rate hedge expired, and afterwards no further interest rate derivatives were concluded.
Where necessary, the Company hedges its own and Group companies’ foreign currency risks. OMV Aktiengesellschaft has entered into hedges with banks, and partly transferred them to Group companies. As of December 31, 2023, the main exposures were related to the EUR-NOK and EUR-USD exchange rates. Foreign currency transactions are used to hedge the period until February 2024.
As of December 31 the value of transactions used to hedge foreign currency risk for Group companies, which is not recognized in the balance sheet of OMV Aktiengesellschaft due to the formation of valuation units, was as follows:

Currency derivatives: Forwards
In EUR 1,000
	2023				2022
	Fair value				Fair value
	Notional value	positive	negative	Carrying value	Notional value	positive	negative	Carrying value
EUR/CZK	24,052	115	–114	—	25 464	73	–72	—
EUR/GBP	11,073	51	–50	—	97 214	967	–962	—
EUR/HUF	127,150	273	–269	—	128 032	1 413	–1,410	—
EUR/RON	15,702	1	–1	—	8 762	15	–15	—
EUR/USD	53,713	289	–286	—	143 013	640	–634	—
USD/CZK	577	—	—	—	370	1	–1	—
USD/NOK	—	—	—	—	93 756	68	–69	—
USD/RON	57,617	265	–263	—	105 027	360	–380	—
Total	289,884	994	–984	—	601,637	3,537	–3,543	—

The effectiveness of the hedging relationship is measured retrospectively based on the correlation between the exchange rate of the hedging instrument and the exchange rate of the underlying hedged transaction. The exchange rate difference of the underlying transaction is settled by the exchange rate difference of the hedging instrument. Prospectively, the effectiveness is measured by checking the correspondence of the critical terms between the underlying transaction and the hedging transaction (critical term match).
Without hedge accounting, provisions for onerous contracts amounting to the negative fair value would have to be recognized based on the so-called ”imparity realization principle” in the amount of EUR 984 thousand (2022: EUR 3,543 thousand).
OMV Aktiengesellschaft employs currency swaps for liquidity management purposes.
.
As of December 31 the value of transactions for OMV Aktiengesellschaft was as follows:

Currency derivatives: FX Swaps
In EUR 1,000
	2023			2022

	Notional value	Fair value	Carrying value	Notional value	Fair value	Carrying value
FX Swap EUR-CZK	8,128	38	—	10,322	–45	–45
FX Swap EUR-HUF	42,160	164	—	72,909	–1,897	–1,897
FX Swap EUR-NOK	591,642	13,331	–158	2,490,418	–25,328	–25,941
FX Swap EUR-AUD	—	—	—	18,816	–30	–30
FX Swap USD-NOK	212,809	9,698	—	—	—	—
FX Swap EUR-NZD	—	—	—	7,779	–40	–40
FX Swap EUR-GBP	1,840	–1	–1	—	—	—
FX Swap EUR-USD	—	—	—	159,756	–360	–360

The fair value of the derivative instruments reflects the estimated amounts that OMV would pay or receive if the positions were closed at balance sheet date. Quotations from banks or appropriate pricing models are used to estimate the fair value of financial instruments at balance sheet date. These models apply the forward rates/forward prices and exchange rates ruling at balance sheet date, as well as volatility indicators for the price calculations. Recognition is under other provisions.

15 Governing bodies, employees and related parties

The average number of employees was:

Average

	2023	2022
Salaried employees	917	871
Total	917	871

The remuneration received by the Executive Board was made up as follows:

Remuneration received by active members of the Executive Board as of December 31, 2023
In EUR 1,000
	2023
	Stern	Florey	Gaso⁴	van Koten	Vlad⁸	Total
Short-term benefits	2,160	1,828	1,239	1,306	857	7,389
Fixed (base salary)	990	810	504	575	527	3,406
Fixed (one-off payment)	—	—	627⁵	—	264⁹	891
Variable (cash bonus)¹	1,160	967	—	702	—	2,828
Benefits in kind²	10	51³	108⁶	29⁷	66¹⁰	264
Post-employment benefits	248	203	129	144	134	857
Pension fund contributions	248	203	129	144	134	857
Share-based benefits	683	1,043	—	310	—	2,036
Variable (Equity Deferral 2022)	683	567	—	310	—	1,560
Variable (LTIP 2020)	—	476	—	—	—	476
Remuneration received by the Executive Board	3,091	3,073	1,368	1,760	991	10,282

¹The variable components relate to target achievement in 2022, for which bonuses were paid in 2023.

²Including cash payments for allowances

³Including schooling costs and related taxes

⁴Bersilav Gaso joined the Executive Board on March 1, 2023.

⁶Including relocation, rental costs,and related taxes

⁷Including car allowances

⁸Daniela Vlad joined the Executive Board on February 1, 2023.

¹⁰Including relocation, rental costs, and related taxes

Remuneration received by former members of the Executive Board as of December 31, 2023
In EUR 1,000
	2023
	Pleininger³	Skvortsova⁵	Seele⁷	Gangl⁸	Total
Short-term benefits	1,524	1,039	716	—	3,279
Fixed (base salary)	250	262	—	—	511
Fixed (one-off payment)	268⁴	—	—	—	268
Variable (cash bonus)¹	1,002	702	716	—	2,420
Benefits in kind²	4	75⁶	—	—	79
Post-employment benefits	121	72	—	—	192
Pension fund contributions	121	72	—	—	192
Share-based benefits	1,260	546	2,160	436	4,402
Variable (Equity Deferral 2022)	645	310	316	—	1,272
Variable (LTIP 2020)	615	236	1,844	436	3,131
Remuneration received by former Executive Board members	2,905	1,657	2,876	436	7,874

¹The variable components relate to target achievement in 2022, for which bonuses were paid in 2023.

²Including cash payments for allowances

³Johann Pleininger resigned from the Executive Board effective December 31, 2022, and his contract ended on April 30, 2023.

⁴Johann Pleininger received compensation for the shortened phase-out period from May 1 until August 31, 2023.

⁵Elena Skvortsova resigned from the Executive Board effective October 31, 2022, and her contract ended on June 14, 2023.

⁶Including rental, advisory costs, and related taxes

⁷Rainer Seele resigned from the Executive Board effective August 31, 2021 and his contract ended on June 30, 2022.

⁸Thomas Gangl resigned from the Executive Board effective March 31, 2021.

Remuneration received by the Executive Board
In EUR 1,000
	2022
	active members of the Executive Board as of December 31, 2022				former members of the Executive Board
	Stern	Pleininger²	Florey	van Koten	Skvortsova⁴	Seele⁶	Gangl⁷	Leitner⁹	Total
Short-term benefits	1,588	1,474	1,546	853	1,162	1,573	123	—	8,319
Fixed (base salary)	990	750	810	575	575	549	—	—	4,250
Variable (cash bonus)¹	588	712	687	249	498	1,017	123	—	3,874
Benefits in kind	10	13	49³	29	89⁵	6	—	—	195
Post-employment benefits	248	188	203	144	144	138	—	—	1,063
Pension fund contributions	248	188	203	144	144	138	—	—	1,063
Share-based benefits	285	1,335	1,032	105	209	3,125	371	697	7,159
Variable (Equity Deferral 2021)	285	436	335	105	209	427	51	—	1,848
Variable (LTIP 2019)	—	899	697	—	—	2,698	319⁸	697	5,311
Remuneration received by the Executive Board	2,121	2,997	2,781	1,102	1,515	4,835	493	697	16,540

¹The variable components relate to target achievement in 2021, for which bonuses were paid in 2022.

²Johann Pleininger resigned from the Executive Board effective December 31, 2022, and his contract ended on April 30, 2023.

³Including schooling costs and related taxes

⁴Elena Skvortsova resigned from the Executive Board effective October 31, 2022, and her contract ended on June 14, 2023.

⁵Including rental and storage costs and related taxes.

⁶Rainer Seele resigned from the Executive Board effective August 31, 2021, and his contract ended on June 30, 2022.

⁷Thomas Gangl resigned from the Executive Board effective March 31, 2021.

⁸Thomas Gangl also received a cash payment in the amount of EUR 0.08 mn based on the Senior Manager LTIP 2019.

⁹Manfred Leitner resigned from the Executive Board effective June 30, 2019.

The members of the Executive Board and the members of the Supervisory Board are covered by directors and officers liability insurance (D&O) and legal costs insurance. A large number of other OMV employees also benefit from these two forms of insurance, and the insurers levy lump-sum premiums, which are not specifically attributed to the Board members.
In 2023 remuneration expenses for the Supervisory Board amounted to EUR 1,030 thousand (2022: EUR 1,105 thousand).
OMV Aktiengesellschaft is the parent company of the OMV Group and acts as a holding company. OMV Aktiengesellschaft also provides the other Group companies with corporate financial, management and other operational services.
The arm's length principle which is applied to transactions with related parties is constantly documented and monitored. There are no significant related party transactions not at arm’s length.
Regarding the expenses for services rendered by the auditor for the year just ended, OMV Aktiengesellschaft refers to the consolidated financial statements of OMV Group.

16 Contingent Liabilities under section § 199 and other obligations under section 237 ACC

Contingent liabilities are as follows:

Contingent Liabilities
In EUR 1,000
	2023	2022
Guarantees	3,006,611	3,551,544
thereof in favor of affiliated companies	3,006,399	3,551,332

The change in contingent liabilities mainly resulted from the decrease of the guarantees issued for OMV Gas Marketing & Trading GmbH in the amount of EUR 402,854 thousand, for OMV Supply & Trading Limited in the amount of USD 75,000 thousand and for OMV Deutschland GmbH in the amount of EUR 55,000 thousand.
The following other financial commitments are not reported under liabilities or contingent liabilities:
OMV Aktiengesellschaft has given an undertaking to OMV Clearing und Treasury GmbH, which runs the Group’s clearing operations, to maintain its liquidity for the duration of its affiliation in the Group.
OMV Aktiengesellschaft has issued guarantees and letters of comfort on behalf of certain exploration, production and distribution companies in respect of the fulfillment of concession and license agreements and various other agreements of indeterminate amounts.
With a letter of financial support vis à vis OMV Gas Storage Germany GmbH, OMV Aktiengesellschaft has undertaken to provide adequate financial funding if necessary, which has been terminated in the current year effective with October 2023.
OMV Aktiengesellschaft has also provided a letter of financial support to OMV Gas Marketing & Trading GmbH to maintain its liquidity if necessary. This agreement is applicable for liabilities which fall due until June, 30, 2025.
OMV Aktiengesellschaft has a joint liability for pension obligations assumed by Group companies, as well as for additional contributions to rectify shortfalls in the funding of obligations transferred to external pension funds and bridging payments to separated employees.

17 Dividend recommendation

Unappropriated income as per the end of the year 2023 amounted to EUR 1,813,317 thousand (2022: EUR 1,994,496 thousand). Thereof an amount of EUR 23,593 thousand (2022: EUR 25,743 thousand) must not be distributed according to Section 235 of the Austrian Commercial Code.
For 2023, the Executive Board of OMV Aktiengesellschaft proposes a dividend of EUR 2.95 (2022: EUR 2.80) per eligible share, which is subject to confirmation by the Annual General Meeting. Additionally the Executive Board of OMV Aktiengesellschaft will propose a special dividend of EUR 2.10 (2022: EUR 2.25) per eligible share, which is also subject to confirmation by the Annual General Meeting. The special dividend will be distributed in addition to and at the same time as the regular dividend. The dividend for 2022 was paid in June 2023 and amounted to EUR 1,652,010 thousand (2022: EUR 752,263 thousand).

18 Subsequent events

On January 31, 2024, following a competitive bidding process, OMV signed an agreement to divest its 50% shareholding in Malaysia’s SapuraOMV Upstream Sdn. Bhd. to TotalEnergies Holdings SAS for an overall cash consideration of USD 903 mn. This amount includes the full repayment of the outstanding USD 350 mn shareholder loan granted by OMV to SapuraOMV, as well as net working capital subject to closing adjustments (Economic Effective Date December 31, 2022). The divestment is anticipated to close around the end of the first half of 2024, and will be subject to regulatory approvals in particular. The remaining 50% interest is held by SapuraEnergy.

Direct Investments by OMV Aktiengesellschaft (interest of at least 20%)

Direct Investments

	Currency	Equity as of Dec. 31, 2023	Net income/ loss in 2023	Equity interest in %
Domestic
OMV Exploration & Production GmbH, Vienna¹	in EUR 1,000	3,204,567	1,468,455	100
OMV Gas Logistics Holding GmbH, Vienna¹	in EUR 1,000	96,152	107,810	100
OMV Insurance Broker GmbH in Liqu., Vienna	in EUR 1,000	—	—	—
OMV Downstream GmbH, Vienna¹	in EUR 1,000	7,333,700	1,555,336	100
OMV Solutions GmbH, Vienna¹	in EUR 1,000	397,709	–14,277	100
OMV Beteiligungsverwaltungs GmbH, Vienna¹	in EUR 1,000	35	—	100
Foreign
Diramic Insurance Limited, Gibraltar	in EUR 1,000	108,713	3,509	100
OMV AUSTRALIA PTY LTD, Perth¹	in AUD 1,000	–169,316	519	100
OMV International Oil & Gas GmbH, Zug²	in CHF 1,000	1,596	231	100
OMV PETROM SA, Bucharest	in RON mn	37,930	3,944	51.16

¹ Tax group member under section 9 Corporate Tax Act

²Figures from 2022

Supervisory Board

Lutz Feldmann
Chairman (since May 31, 2023)
Mark Garrett
Chairman (until May 31, 2023)

Edith Hlawati

Deputy Chairwoman
Saeed Al Mazrouei
Deputy
Alyazia Ali Al Kuwaiti
Stefan Doboczky

Karl Rose

Elisabeth Stadler

Jean-Baptiste Renard

Robert Stajic

Gertrude Tumpel-Gugerell

Delegated by the Works Council:
Alexander Auer
Angela Schorna
Mario Mayrwöger (until May 31, 2023)
Nicole Schachenhofer
Hubert Bunderla
Alfred Redlich (since May 31, 2023)
In addition to internationally experienced board members and directors of the core shareholders, the Supervisory Board appointed in the Annual General Meeting is made up of highly qualified independent members, whereby OMV observes EU recommendations relating to independence.
Presidential and Nomination Committee:
Feldmann (Chairman), Hlawati (Deputy Chairwoman), Al Mazrouei (Deputy Chairman), Al Kuwaiti, Redlich, Auer
Audit Committee:
Tumpel-Gugerell (Chairwoman), Stadler (Deputy Chairwoman), Al Kuwaiti (Deputy Chairwoman), Feldmann, Stajic, Doboczky, Bunderla, Schorna, Auer
Portfolio and Project Committee:
Renard (Chairman), Stajic (Deputy Chairman), Al Mazrouei (Deputy Chairman), Al Kuwaiti, Doboczky, Rose, Auer, Redlich, Schachenhofer
Sustainability and Transformation Committee:
Doboczky (Chairman), Renard (Deputy Chairman), Stadler, Al Kuwaiti, Stajic, Schachenhofer, Schorna, Bunderla
Remuneration Committee:
Feldmann (Chairman), Hlawati (Deputy Chairwoman), Al Mazrouei (Deputy Chairman), Stadler, Tumpel-Gugerell

Executive Board

Alfred Stern

Chairman of the Executive Board
and Chief Executive Officer

Reinhard Florey

Chief Financial Officer

Martijn van Koten

Executive Vice President Fuels & Feedstock

Daniela Vlad

Executive Vice President Chemicals & Materials

Berislav Gaso

Executive Vice President Energy

Vienna, March 5, 2024
The Executive Board

Alfred Stern m.p. Chairman of the Executive Board and Chief Executive Officer	Reinhard Florey m.p. Chief Financial Officer
Martijn van Koten m.p. Executive Vice President Fuels & Feedstock	Daniela Vlad m.p. Executive Vice President Chemicals & Materials
Berislav Gaso m.p. Executive Vice President Energy

Statement of fixed assets in accordance with section 226 (1) ACC

Development of acquisition costs
In EUR 1,000
	As of Jan. 1, 2023	Additions
Intangible assets
Concessions, industrial property rights and similar rights and benefits and licenses derived therefrom	48,923	2,845¹
Payments on accounts	530	—
	49,453	2,845
Tangible assets
Land and buildings on third party land	2,710	—
Other fixtures and fittings, tools and equipment	24,744	6,454
	27,454	6,454
Financial assets
Shares in affiliated companies	17,491,270	6,200
Loans to affiliated companies	4,058,759	622,699
Securities held as fixed assets	4,506	—
Other loans	1,686	—
	21,556,221	628,899
	21,633,128	638,198

¹ Including assets taken over from affiliated companies: EUR nil (2022: EUR 17 thousand) intangible assets

_▸



Disposals	As of Dec. 31, 2023	Depreciation and amortization as of Dec 31, 2023 (cumulative)	Carrying value as of Dec. 31, 2023	Carrying value as of Dec. 31, 2022

3,278	48,290	33,623	14,667	16,117
353	177	—	177	530
3,631	48,467	33,623	14,844	16,647

615	2,095	2,079	16	976
4,702	26,696	15,378	11,318	9,420
5,317	28,791	17,457	11,334	10,397

35	17,497,435	4,477,653	13,019,782	13,173,471
2,119,292	2,562,166	—	2,562,166	4,058,759
—	4,506	—	4,506	4,506
1,665	20	—	20	39
2,120,992	20,064,127	4,477,653	15,586,474	17,236,775
2,129,940	20,141,385	4,528,733	15,612,652	17,263,820

Development of depreciation
In EUR 1,000
	As of Jan. 1, 2023	Depre- ciation	Impair- ments	Write-up	Disposals	As of Dec. 31, 2023
Intangible assets
Concessions, industrial property rights and similar rights and benefits and licenses derived therefrom	32,806	3,772	304	—	3,259	33,623
Tangible assets	—	—	—	—	—	—
Land and buildings on third party land	1,734	349	—	—	4	2,079
Other fixtures and fittings, tools and equipment	15,323	4,728	—	—	4,673	15,378
	17,057	5,077	—	—	4,677	17,457
Financial assets
Shares in affiliated companies	4,317,799	—	159,854	—	—	4,477,653
Loans to affiliated companies	—	—	—	—	—	—
Securities held as fixed assets	—	—	—	—	—	—
Other loans	1,646	—	—	—	1,646	—
	4,319,445	—	159,854	—	1,646	4,477,653
	4,369,308	8,849	160,158	—	9,582	4,528,733

Abbreviations and Definitions

ACC
Austrian Commercial Code
ACCG
Austrian Code of Corporate Governance

AGM
Annual General Meeting

bbl
Barrel (1 barrel equals approximately 159 liters)
bbl/d
Barrels per day
bcf
Billion standard cubic feet (60°F/16°C)
bn
Billion
boe
Barrel of oil equivalent
boe/d
Barrel of oil equivalent per day

CAGR
Compounded annual growth rate
CAPEX
Capital expenditure
Capital employed
Equity including non-controlling interests plus net debt
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.
CEE
Central and Eastern Europe
CEGH
Central European Gas Hub
cf
Standard cubic feet
(60°F/16°C)
CGU
Cash generating unit

Clean CCS EPS
Clean CCS Earnings Per Share are calculated as clean CCS net income attributable to stockholders divided by weighted number of shares.

Clean CCS net income attributable to stockholders
Net income attributable to stockholders, adjusted for the after-tax effect of special items and CCS
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.

Clean CCS ROACE
The clean CCS Return On Average Capital Employed is calculated as NOPAT (as a sum of current and last three quarters) adjusted for the after-tax effect of special items and CCS, divided by average capital employed (%).

C&M
Chemicals & Materials business segfment

Co&O
Corporate and Other

E&A
Exploration & Appraisal
ECL
Expected credit losses
E&P
Exploration & Production, part of Energy business segment
EPS
Earnings Per Share; net income attributable to stockholders divided by total weighted average shares

EPSA
Exploration and Production Sharing Agreement

Equity ratio
Equity divided by balance sheet total, expressed as a percentage
ESG
Environmental, Social, and Governance
EV
Electric vehicle

FCC
Fluid Catalytic Cracking; an important material conversion process
F&F
Fuels & Feedstock business segment
FVOCI
Fair value through other comprehensive income
FVTPL
Fair value through the statement of profit or loss
FX
Foreign exchange

GDP
Gross Domestic Product
GHG
Greenhouse gas

HSSE
Health, Safety, Security, and Environment
HVO
Hydrotreated vegetable oil

IASs
International Accounting Standards
IEA
Internatioal Energy Agency

IFRSs
International Financial Reporting Standards

IMF
International Monetary Fund

kbbl/d
Thousand barrels per day
kboe
Thousand barrels of oil equivalent
kboe/d
Thousand barrels of oil equivalent per day
KPI
Key Performance Indicator
KStG
Austrian Corporate Income Tax Act

Leverage ratio
Net debt divided by capital employed, expressed as a percentage
LNG
Liquefied natural gas
LPG
Liquefied petroleum gas
LTIR
Lost-Time Injury Rate per million hours worked

min
Minute
mn
Million
MPPH
Mubadala Petroleum and Petrochemicals Holding Company L.L.C.
MW
Megawatt
MWh
Megawatt hour

n.a.
Not available
NCI
Non-controlling interests
n.m.
Not meaningful
Net assets
Intangible assets, property, plant and equipment, equity-accounted investments, investments in other companies, loans granted to equity-accounted investments, and total net working capital less provisions for decommissioning and restoration obligations
Net debt
Interest-bearing debts including bonds and finance lease liabilities less liquid funds (cash and cash equivalents)
Net income
Net operating profit or loss after interest and tax
NGL
Natural Gas Liquids; natural gas that is extracted in liquid form during the production of hydrocarbons
NOPAT
Net Operating Profit After Tax
Net income
+ Net interest related to
financing
– Tax effect of net interest
related to financing
NOPAT is a KPI that shows the financial performance after tax, independent of the financing structure of the company.

ÖBAG
Österreichische Beteiligungs AG
OCI
Other comprehensive income
OECD
Organisation for Economic Cooperation and Development
OEM
Original equipment manufacturer
OPEC/OPEC+
The Organization of the Petroleum Exporting Countries (OPEC) and its allies are known as OPEC+
OTC
Over-the-counter

Payout ratio
Dividend per share divided by earnings per share, expressed as a percentage
Pearl
Pearl Petroleum Company Limited

ROACE
Return On Average Capital Employed; NOPAT divided by average capital employed expressed as a percentage

ROE
Return On Equity; net income/loss for the year divided by average equity, expressed as a percentage
RRR
Reserve Replacement Rate; total changes in reserves excluding production, divided by total production

SAF
Sustainable Aviation Fuel
Sales revenues
Sales excluding petroleum excise tax
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 the OMV Group’s reported financial performance.

t
Metric ton
THE
Trading Hub Europe, German natural gas market trading hub
toe
Metric ton of oil equivalent
TRIR
Total Recordable Injury Rate per million hours worked
TSR
Total Shareholder Return
TTF
The Title Transfer Facility (TTF) is a virtual trading point for natural gas in the Netherlands.

TWh
Terawatt hour

UAE
United Arab Emirates
Contact at Investor Relations:
OMV Aktiengesellschaft
Investor Relations
Trabrennstrasse 6–8
1020 Vienna, Austria
Tel. +43 1 40440–21600
Fax +43 1 40440–621600
investor.relations@omv.com
www.omv.com
www.twitter.com/omv
www.omv.com/socialmedia
Publisher
OMV Aktiengesellschaft, Vienna
Photos
Title: Kurt Prinz

Notes:
Figures in the tables and charts may not add up due to rounding differences. Differences between percentages are displayed as percentage points throughout the document.

In the interest of a fluid style that is easy to read, non-gender-specific terms have been used in the notes chapter of this annual report.

Disclaimer regarding forward-looking statements:
This report contains forward-looking statements. Forwardlooking statements usually may be identified by the use of terms such as “outlook,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “target,” “objective,” “estimate,” “goal,” “may,” “will” and similar terms, or by their context. These forwardlooking statements are based on beliefs, estimates and assumptions currently held by and information currently available to OMV. By their nature, forward-looking statements are subject to risks and uncertainties, both known and unknown, because they relate to events and depend on circumstances that will or may occur in the future and are outside the control of OMV. Consequently, the actual results may differ materially from those expressed or implied by the forward-looking statements. Therefore, recipients of this report are cautioned not to place undue reliance on these forward-looking statements. Neither OMV nor any other person assumes responsibility for the accuracy and completeness of any of the forward-looking statements contained in this report. OMV disclaims any obligation and does not intend to update these forward-looking statements to reflect actual results, revised assumptions and expectations, and future developments and events. This report does not contain any recommendation or invitation to buy or sell securities in OMV.

Declaration according to § 124 (1) BörseG 2018

Statement of all Legal Representatives

We confirm to the best of our knowledge that the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group as required by the applicable accounting standards and that the Group directors’ report gives a true and fair view of the development and performance of the business and the position of the Group, together with a description of the principal risks and uncertainties the Group faces.
We confirm to the best of our knowledge that the separate financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the parent company as required by the applicable accounting standards and that the directors’ report gives a true and fair view of the development and performance of the business and the position of the company, together with a description of the principal risks and uncertainties the company faces.
Vienna, March 5, 2024

Alfred Stern m.p.
Chairman of the Executive Board
and Chief Executive Officer

Reinhard Florey m.p.

Chief Financial Officer

Martijn van Koten m.p.
Executive Vice President Fuels & Feedstock
Berislav Gaso m.p.
Executive Vice President Energy

Daniela Vlad m.p.
Executive Vice President Chemicals & Materials

OMV Aktiengesellschaft
Trabrennstrasse 6 – 8
1020 Vienna, Austria
Tel. + 43 1 40440-0
info@omv.com
www.omv.com
www.omv.com/socialmedia

¹ OMV announced in July 2023 that it had decided to pursue negotiations with ADNOC on a potential cooperation regarding their polyolefins businesses. Such cooperation would include a potential combination of the Borealis and Borouge businesses as equal partners under a jointly controlled, listed platform for poten-tial growth acquisitions to create a global polyolefin company with a material presence in key markets.

² On January 31, 2024, OMV has signed an agreement to divest its 50% sharehold-ing in Malaysia’s SapuraOMV Upstream Sdn. Bhd. to TotalEnergies for an overall cash consideration of USD 903 mn. The divestment is anticipated to close around the end of the first half of 2024, and is in particular subject to regulatory approvals. The sales process for 100% of the shares in OMV New Zealand will continue separately.

³ Based on the World Energy Outlook 2022 report published by the International Energy Agency (IEA).

⁴ Note: The financial targets for 2025 are based on the following market nominal price assumptions: Brent oil price of USD 65/bbl, THE (Trading Hub Europe) gas price of EUR 22/MWh, refining indicator margin Europe of USD 4.3/bbl, ethylene/propylene indicator margin Europe of EUR 430/t, polyethylene/polypropylene indicator margin Europe of EUR 420/t. The financial targets for 2030 are based on the following market nominal price assumptions: Brent oil price of USD 70/bbl, THE (Trading Hub Europe) gas price of EUR 24/MWh, refining indicator margin Europe of USD 4.3/bbl, ethylene/propylene indicator margin Europe of EUR 500/t, polyethylene/polypropylene indicator margin Europe of EUR 480/t.

⁵ Depending on OMV’s leverage ratio, the order between inorganic growth and deleveraging can reverse.

⁶ The following Scope 3 categories are included: category 11 – Use of sold prod-ucts for energy supply, category 1 – Purchased goods (feedstocks), and catego-ry 12 – End of life of sold products for non-energy use.

⁷ IMF World Economic Outlook, January 2024

⁸ Inflation excluding food and energy

⁹Includes expenditures for acquisitions as well as equity-accounted investments and other interests; adjusted for capitalized decommissioning costs, exploration wells that have not found proved reserves, borrowing costs and other additions that by definition are not considered capital expenditure

¹⁰ OMV announced in July 2023 that it had decided to pursue negotiations with ADNOC on a potential cooperation regarding their polyolefins businesses. Such cooperation would include a potential combination of the Borealis and Borouge businesses as equal partners under a jointly controlled, listed platform for potential growth acquisitions to create a global polyolefin company with a material presence in key markets.

¹¹ Organic capital expenditure is defined as capital expenditure including capitalized Exploration and Appraisal expenditure and excluding acquisitions and contingent considerations.

¹² On December 21, 2022, Abu Dhabi National Oil Company (ADNOC) has an-nounced its plan to take over the 24.9% stake in OMV Aktiengesellschaft from MPPH, subject to regulatory approvals. On February 28, 2024, following all conditions under the share purchase agreement between MPPH and ADNOC having been fulfilled, all of the 24.90% of the shares in OMV Aktiengesellschaft were transferred from MPPH to ADNOC.

¹³ This English language audit report is a translation provided for information pur-poses only. The original German text shall prevail in the event of any discrepan-cies between the English translation and the German original. We do not accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

¹⁴ The following Scope 3 categories are included: category 11 – Use of sold prod-ucts for energy supply, category 1 – Purchased goods (feedstocks), and category 12 – End of life of sold products for non-energy use.

¹⁵ The base for the emissions reduction targets are the Group’s emissions in 2019 adjusted for the emissions of Borealis in which OMV acquired a majority stake in 2020.

¹⁶ Based on the World Energy Outlook 2022 report published by the IEA.

¹⁷ On December 21, 2022, Abu Dhabi National Oil Company (ADNOC) has an-nounced its plan to take over the 24.9% stake in OMV Aktiengesellschaft from MPPH, subject to regulatory approvals. On February 28, 2024, following all conditions under the share purchase agreement between MPPH and ADNOC having been fulfilled, all of the 24.90% of the shares in OMV Aktiengesellschaft were transferred from MPPH to ADNOC.

¹⁸ Organic capital expenditure is defined as capital expenditure including capitalized Exploration and Appraisal expenditure and excluding acquisitions and contingent considerations.

¹⁹ This report is a translation of the original report in German, which is solely valid.

²⁰ Based on the World Energy Outlook 2022 report published by International Ener-gy Agency (IEA).