OMV Petrom S A : Group 2023 Annual Report including consolidated financial statements

OMV Petrom Annual Report 2023

Contents

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Contents

OMV Petrom Annual Report 2023

Who we are

Every single day, OMV Petrom makes people's lives better.

Every single day, OMV Petrom produces and supplies the energy for millions of people - for their comfort, their need for mobility, or their passion to travel.

Energy is part of our lives: fuels are the basis for mobility, gas is used for heating homes, and electricity powers the appliances that make our lives easier. Behind all this stands the energy of OMV Petrom.

OMV Petrom leverages on the industry's expertise in Romania, as one of the first oil producing countries in the

world. At the same time, it successfully applies innovation and technical know-how to contribute to improving the quality of life, while transforming itself into a lower-carbon integrated energy company.

We produce energy in all its forms: fuels, gas, and electricity.

Safely. Securely. Responsibly.

Today and tomorrow.

The energy for a better life

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OMV Petrom Annual Report 2023

Who we are

OMV Petrom is the largest integrated energy producer in Southeastern Europe. The company is active along the entire energy value chain: from exploration and production of oil and gas, to refining and fuels distribution, and further on to power generation and marketing of gas and power.

The company is organized into three operationally integrated business segments - Exploration & Production, Refining & Marketing, Gas & Power. OMV Petrom's integrated business model provides financial resilience due to synergies and natural hedging against oil and gas price volatility.

In Exploration & Production (E&P), OMV Petrom is present in Romania, Bulgaria and Georgia. Our expertise varies from deep onshore and offshore exploration to mature fields and shallow offshore production.

In 2023, our portfolio consisted of 424 mn boe proved (1P) reserves and around 41 mn boe hydrocarbon production (thereof 2.8 mn tons of crude oil and natural gas liquids and 3.3 bn cubic meters of natural gas).

In Refining & Marketing (R&M), we operate the Petrobrazi refinery, which has a capacity of 4.5 mn tons per year and can process OMV Petrom's entire Romanian equity crude oil. We are present on the oil products retail market through a network of 780 filling stations located in Romania, Moldova, Bulgaria, and Serbia. These filling stations are operated under two brands: Petrom and OMV. In some of our filling stations in Romania, Bulgaria and Serbia we complemented the offer to our customers by installing charging points for electric vehicles (end-2023: 272 charging points, partially in partnerships). In 2023, the R&M business segment recorded 5.5 mn tons of refined product sales, of which 3.1 mn tons were retail sales.

In Gas & Power (G&P), we are engaged in electricity production, as well as gas and power sales. In Romania, we operate the Brazi gas fired power plant, which has a capacity of 860 MW. We carry out gas and power marketing operations in six countries, while expanding market access in Romania's geographical proximity. In 2023, the segment recorded gas sales volumes of 46.8 TWh (thereof 37.9 TWh to third parties), the equivalent of 4.4 bcm, and generated 4.2 TWh of electricity.

Every day, millions of people and thousands of businesses in Romania and in the region use our energy. OMV Petrom's fuels and energy products enable mobility, provide heat for daily living and working, and form the basis for a variety of plastics and high-end petrochemical products.

OMV Petrom has a long tradition of sustainable and responsible behavior in delivering energy with the purpose of improving people's lives. Sustainability for OMV Petrom means creating long-term value for our customers and shareholders, while being an innovative company and an employer of choice. We conduct our business in a responsible way, respecting the environment and adding value to the communities in which we operate.

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An integrated energy company

OMV Petrom Annual Report 2023

Who we are

Our business model

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OMV Petrom Annual Report 2023

Who we are

OMV Petrom is the largest integrated energy producer in Southeastern Europe and the second-largest Romanian company listed on the Bucharest Stock Exchange, with a market capitalization of EUR 7.2 bn at the end of 2023.

The company has a leading position in the fuels and natural gas markets in Romania and an important contribution to the country's security of electricity supply.

OMV Petrom's success is based on its integrated business model, operational excellence and financial discipline, which are key in generating sustainable growth and attractive returns for our shareholders.

Our proposition to shareholders is clear: growth in investment, increase in profitability and dividends - all while securing a sustainable long-termbusiness through our energy transition.

We aim to maintain a disciplined capital approach, while investing close to EUR 11 bn and achieving a ROACE of more than 12% in 2030. We expect this to strengthen Romania's and Southeastern Europe's security of supply, as well as the EU's energy resilience.

We target to more than double our Clean CCS Operating Result in 2030 compared to 2020 and we are confident that this will allow us to increase base dividends by 5 to 10% per annum over the decade, in line with profits. In a favorable market environment and at management discretion, special dividends may also be distributed, provided that the company's investment plans are funded. These elements

are the main pillars of our attractive dividend policy: "OMV Petrom is committed to deliver a competitive shareholder return throughout the business cycle, including paying a progressive dividend, in line with the financial performance and investment needs, considering the long-term financial health of the company".

Sustainability remains at the core of our actions, as mitigating climate change is a strategic priority for our business, and we are committed to be part of the solution for the transition to cleaner energy.

Our long-term goal is to achieve net zero operations by 2050. We target to reduce Scope 1 to 3 intensity emissions by about 20% until 2030 compared to 2019.

To help achieve this, we plan to invest approximately EUR 2 bn in innovation and new technologies, mainly in hydrogen and carbon capture and storage.

In total, we expect that about a third of our cumulated investments will be into low and zero carbon new businesses.

Since privatization, OMV Petrom has provided a stable base for Romania's economy as a reliable energy supplier, a major employer, and a significant contributor to the state budget.

OMV Petrom will continue to consider its employes a priority, while also focusing on creating value for its customers by enhancing their satisfaction and experience.

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Why invest in OMV Petrom

OMV Petrom Annual Report 2023

Who we are

OMV Petrom Annual Report 2023

Who we are

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1 Fuels refer only to retail diesel and gasoline; OMV Petrom estimates based on National Institute of Statistics and Romanian Energy Regulatory Authority.

Partner for Romania

OMV Petrom Annual Report 2023

Company

Dear Shareholders,

2023 was a strong year of execution which characterized OMV Petrom's agility and resilience. We completed major steps in our 2030 Strategy, 2023 representing a turning point in our transformation journey. We contributed significantly to the security of Romania's energy supply by diversifying our supply sources and carrying out important planned turnarounds in the context of heightened geopolitical risk, caused by the conflict in the Middle East and the ongoing Russia-Ukraine conflict.

Despite the steep decline in commodity prices, following the unprecedented highs of 2022, the demand only started to improve in the fourth quarter of 2023. As an Executive Board, we have had a great deal to navigate this environment and I am very grateful to all our colleagues for their achievements and steadfast commitment.

Many key project milestones were achieved in 2023 as we deliver on our Strategy 2030 ambitions. Our Neptun Deep flagship project made notable progress with final investment decision taken in June and the awarding of more than 80% of the execution agreements by the year end. We also continued to roll out our renewable power and e-mobility portfolios. In our traditional activities, we partly offset the decline in hydrocarbon production, better than initially expected, we increased our gas sales despite the depressed market, we successfully finalized the turnarounds of our key downstream assets and we finalized the rollout of myAuchan

stores in Petrom-branded filling stations a year ahead of schedule.

People safety is of paramount importance to us and we have a strong safety record. Sadly, however, we did experience a fatality in 2023 having lost a contractor's employee in a fatal accident during the refinery turnaround. Every loss is a tragedy and we express our sincere condolences to our colleague's family. Our express focus is to return to a zero fatality rate in 2024, in line with our "Committed to Zero Harm - Protect People, Environment, and Assets" vision.

Our carbon intensity index decreased by around 11% and we achieved a decrease in methane intensity by 73%, both vs. 2019. Our overarching ambition is to reduce the carbon intensity of our operations by 30% in 2030, compared to 2019 level.

Our strong operational performance enabled us to contribute significantly to the economic and social development of our communities. We ramped up our investments to RON

4.7 bn. This was achieved despite continuing to operate in a high inflationary environment and weaker market fundamentals, as reflected by the decline in Clean CCS Operating Result to RON 8.5 bn, in line with the 37% sales decline. Our resilience to macroeconomic headwinds is further illustrated by a decline in operating cash flow of only 11% to RON 10 bn. This performance allowed us to remain one of the largest contributors to the Romanian state budget, with RON 16 bn, yet 19% lower yoy. We also take pride in having made social contributions of around RON 200 mn to various health, educational and environmental projects in 2023.

Our ability to generate solid cash flow provided the foundation for distributing our historical-high dividends last year, with a competitive yield of 19.6%, reflecting also the second special dividend distributed to shareholders. Total dividends paid in 2023 amounted to RON 5.1 bn. Furthermore, the market's confidence in OMV Petrom's performance led to share price appreciation of 37% over the year, outperforming the main local index by five percentage points and the sector average by 39 percentage points. Together with dividends, this led to a total shareholder return of 56% in 2023.

Based on our 2023 results, the Executive Board has proposed a gross base dividend of RON 0.0413/share for the 2023 financial year, up 10% yoy. The Executive Board has also announced its intention to propose an additional special dividend in 2024, the third in the company's history. The base dividend proposal was approved by the

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Statement of the Chief Executive Officer