WINTERSHALL DEA Q2 2020 RESULTS PRESENTATION MARIO MEHREN (CEO), PAUL SMITH (CFO) AUGUST 19, 2020
Q2 2020 RESULTS PRESENTATION DISCLAIMER This document has been prepared by Forward-Looking Statements Non-GAAP and Non-IFRS Financial Measures Wintershall Dea GmbH (“the Company”) for This document includes projections and other This document contains certain non GAAP and information purposes only. “forward - looking statements”, which are based non IFRS measures and ratios, including for The information contained in this document has on expectations of the Company’s management example EBITDAX, net debt and adjusted net not been independently verified and no and projections about future events and income that are not required by, or presented in representation or warranty, express or implied, financial performance as of the date of the accordance with, any GAAP or IFRS. is made as to, and no reliance should be placed presentation. These forward-looking statements These non GAAP and non IFRS measures and on, the fairness, accuracy, completeness or involve a number of risks, uncertainties, and ratios may not be comparable to similarly titled correctness of the information or opinions assumptions about the Company and its measures used by other companies and have contained herein. None of the Company or any subsidiaries, which are beyond the control of the limitations as analytical tools and should not be of their respective affiliates, advisors, or Company. In light of these risks, uncertainties considered in isolation or as a substitute for representatives shall have any liability and assumptions, actual results may not occur analysis of our operating results as reported whatsoever (in negligence or otherwise) for any or may differ materially from those predicted in under IFRS or any GAAP. loss whatsoever arising from any use of this the forward-looking statements and from the document, or its contents, or otherwise arising in past performance of the Company. As a result, connection with this document. you should not rely on these forward-looking statements. The Company accepts no obligation This document does not constitute, or form part to update any forward-looking statements set of, an offer or invitation to purchase any forth herein or to adjust them to future events securities and neither it nor part of it shall form or developments. the basis of, or be relied upon in connection with, any contract or commitment whatsoever. PAGE 2
TBU Q2 2020 HIGHLIGHTS PAGE 3
Q2 2020 RESULTS PRESENTATION MACROECONOMIC BACKDROP TTF PRICE DEVELOPMENT($/MSCF) BRENT PRICE DEVELOPMENT ($/BBL) Quarterly 7.1 3.6 4.7 2.1 63 69 62 63 50 30 4.8 3.7 averages 80 8 70 60 6 50 40 4 30 20 2 10 0 0 Jan 19 Apr 19 Jul 19 Oct 19 Jan 20 Apr 20 Jul 20 Jan 19 Apr 19 Jul 19 Oct 19 Jan 20 Apr 20 Jul 20 SOURCE: HEREN/ARGUS/PLATTS; FX CONVERSION ACCORDING TO ECB PAGE 4
Q2 2020 RESULTS PRESENTATION SECOND QUARTER PERFORMANCE OPERATIONAL FINANCIAL HEALTH AND SAFETY 254 606 EBITDAX 0.58 LTIF Production (1) mboe/d € million Q2 2019 (2) : 614 mboe/d Q2 2019 (2) : €683 million Q2 2019: 0.36 -294 3.5 Production Cost Free Cash Flow 1.57 TRIR $ per boe Q2 2019 (2) : $4.1/boe € million Q2 2019 (2) : €33 million Q2 2019: 3.49 90 367 Adj. Net Income CAPEX (3) Q2 2019 (2) : €330 million € million € million Q2 2019 (2) : €465 million EXCLUDING LIBYA ONSHORE PRODUCTION 1) LIKE-FOR-LIKE PRESENTATION, AGGREGATING THE INCOME STATEMENT OF THE WINTERSHALL GROUP FOR APRIL 2019 (IN THE NEW REPORTING STRUCTURE), THE INCOME STATEMENT OF THE DEA GROUP FOR APRIL 2019 (IN THE NEW REPORTING STRUCTURE) AND THE 2) INCOME STATEMENT OF THE WINTERSHALL DEA GROUP FOR MAY - JUNE 2019, EFFECTS FROM THE PURCHASE PRICES ALLOCATION ONLY INCLUDED FROM 1 MAY 2019 ONWARDS PAGE 5 INCLUDING CAPITALIZED EXPLORATION AND ACQUISITIONS 3)
Q2 2020 RESULTS PRESENTATION DELIVERING ON CRISIS ACTIONS IMPLEMENTED CONTINUING TOP PRIORITIES DECISIVE MEASURES TO DELIVER Production and development capex Protecting our people No material impact to production ✓ budget reduced by 30% Business continuity ✓ Exploration budget reduced by 20% Record low production costs of Balance sheet $3.5/boe in Q2 achieved ✓ Opex budget reduced by 10% Positive free cash flow outlook for 2020 ✓ Dividend suspended PAGE 6
Q2 2020 RESULTS PRESENTATION SECOND QUARTER OVERVIEW Strong operational performance - Stable production - 2020 project delivery on track - Two near field discoveries in Norway - - Evaluation of Mexico discoveries and follow-up potential ongoing Financial performance impacted by low commodity prices - €776 million post -tax impairment charge taken Delivering on crisis actions - Spending cuts on track - Record low production costs at $3.5/boe Forecasting Free Cash Flow positive Full Year Outlook - Temporary tax incentives in Norway DVALIN DEVELOPMENT CONCEPT Reaffirmed credit ratings at Baa2/BBB (neg/sta) PAGE 7
FINANCIAL AND OPERATIONAL RESULTS PAGE 8
Q2 2020 RESULTS PRESENTATION RESULTS SUMMARY Unit Q2 2020 Q2 2019 (2) Environment Production (1) mboe/d 606 614 Brent $/boe 30 69 Gas TTF $/mscf 2.1 4.8 EBITDAX € million 254 683 Financial Results Operating Cash Flow € million 99 494 Capex (3) € million 367 465 Free Cash Flow € million -294 33 Adjusted Net income (4) € million 90 330 Balance Sheet 30.06.2020 31.03.2020 Liquidity Net Debt € million 5,999 5,713 Leverage Ratio (LTM) x 2.9 2.3 Liquidity € million 1,797 2,441 (5) (1) EXCLUDING LIBYA ONSHORE PRODUCTION; THE PERIOD Q2 2019 COMPRISES PRODUCTION FOR WINTERSHALL DEA GROUP ON AL LIKE-FOR-LIKE BASIS (AGGREGATING PRODUCTION FOR WINTERSHALL GROUP FOR APRIL 2019, THE PRODUCTION FOR DEA GROUP FOR APRIL 2019 AND THE PRODUCTION FOR WINTERSHALL DEA GROUP FOR MAY – JUNE 2019) ON A WORKING INTEREST BASIS; INCLUDING PROPORTIONAL PRODUCTION FROM AT EQUITY ACCOUNTED COMPANIES LIKE-FOR-LIKE PRESENTATION, AGGREGATING THE INCOME STATEMENT OF THE WINTERSHALL GROUP FOR APRIL 2019 (IN THE NEW REPORTING STRUCTURE), THE INCOME STATEMENT OF THE DEA GROUP FOR APRIL 2019 (IN THE NEW REPORTING STRUCTURE) AND THE INCOME STATEMENT OF THE WINTERSHALL DEA GROUP FOR MAY - (2) JUNE 2019, EFFECTS FROM THE PURCHASE PRICE ALLOCATION ONLY INCLUDED FROM 1 MAY 2019 ONWARDS. INCLUDING CAPITALIZED EXPLORATION AND ACQUISITIONS (3) (4) ADJUSTED FOR SPECIAL ITEMS LIKE IMPAIRMENT LOSSES AND EXPENSES RELATED TO THE MERGER SUCH AS RESTRUCTURING AND INTEGRATION AS REPORTED, INCLUDING WORKING CAPITAL LINES SIGNED AFTER QUARTER END (5)
Q2 2020 RESULTS PRESENTATION PRODUCTION PRODUCTION (1) (WI, MBOE/D) Q2 2020 PRODUCTION (1) COMPOSITION Brent % Gas 72% 72% 71% 73% 73% 73% Crude 17% 638 626 626 Russia 614 606 589 38% Gas 75 74 70 606 76 74 80 41 55 49 48 46 Europe 18% 59 (mboe/d) Spot Gas 306 300 280 307 287 264 7% 9% Other Non- 10% Europe Gas Russia Argentina Condensate 210 207 205 200 199 186 Gas Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 ~36% of total production linked directly to spot Brent and European gas prices Northern Europe Russia MENA Latam INCLUDES PRODUCTION FROM AT-EQUITY ACCOUNTED COMPANIES, EXCLUDING LIBYA ONSHORE VOLUMES (1) PAGE 10
Q2 2020 RESULTS PRESENTATION REALIZATIONS GAS ($/MSCF) LIQUIDS ($/BOE) -48% -53% 55 2.3 26 1.2 41 19 Q2 2019 Q2 2020 Q2 2019 Q2 2020 (1) Realized price Realized price, excl. Russian condensate -57% TTF BRENT -56% 4.8 2.1 30 69 ($/MCF) ($/BBL) AVERAGE REALIZED LIQUIDS PRICE INCLUDING OIL PRICE HEDGE RESULT 1) PAGE 11
Q2 2020 RESULTS PRESENTATION PROFITABILITY EBITDAX (€ MILLION) ADJUSTED NET INCOME (€ MILLION) -63% -73% 683 78 65 95 330 105 254 58 27 379 43 90 37 118 -39 -29 Q2 2019 Q2 2020 Q2 2019 Q2 2020 Northern Europe Russia Latam MENA Midstream Other PAGE 12
Q2 2020 RESULTS PRESENTATION COST PERFORMANCE PRODUCTION COST EVOLUTION ($/BOE) PRODUCTION AND OPERATING EXPENSES Other Production 32% 5.7 Costs 40% 5.4 €333 4.3 million 4.1 3.5 28% Cost of Trade Goods (1) 2017 2018 2019 Q2 2019 Q2 2020 COST OF TRADE GOODS INCLUDES PRIMARILY TRADING ACTIVITIES. OTHER PRIMARILY INCLUDES TRANSPORT FEES AND LEASES AND OTHER COST OF SALES 1) PAGE 13
Q2 2020 RESULTS PRESENTATION CASH FLOW DEVELOPMENT AND BALANCE SHEET CASH FLOW BRIDGE (€ MILLION) NET DEBT POSITION (€ MILLION) 99 Leverage -393 2.9x -294 6,463 WIGA Group cash pooling 156 -464 deconsolidation 385 effect 1,091 1,904 -313 33 -70 5,999 4,018 Other 447 (1) BoP Cash Operating CF Investing CF Free CF Financing CF Other EoP Cash Total debt Cash, cash eq. and financial Net debt receivables from cash pooling Bonds Debt to Banks At-equity Liability Leasing Liability INCLUDING FX AND CHANGE OF CONSOLIDATION (1) PAGE 14
Q2 2020 RESULTS PRESENTATION LIQUIDITY AND DEBT MATURITY PROFILE LIQUIDITY EVOLUTION (€ MILLION) STABLE DEBT MATURITY PROFILE (€ MILLION) (3) € 2.44 billion € 1.80 billion 1,000 1,000 1,000 1,000 942 942 450 (1) WCL 450 900 (2) RCF Cash 900 1,091 447 Q1 2020 Q2 2020 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Senior Notes Term Loans WORKING CAPITAL LINES SIGNED IN APRIL 2020 (1) UNDRAWN COMMITTED RCF, DUE 2025 (2) INCLUDES ONLY EXTERNAL DEBT; TERM LOANS DENOMINATED IN USD WITH NOMINAL SIZE $1,050 MILLION EACH, BUT DRAWN BOTH IN USD AND EUR (3) PAGE 15
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