Analysts’ Open Day · Slovnaft in preparation for year 2005 specifications Exceeding EU product specifications . 17 Highly profitable refineries Source: Wood Mackenzie’s 1999

1

MOLMOL--Slovnaft partnershipSlovnaft partnership““First step on the road to becoming a regional championFirst step on the road to becoming a regional champion””

Analysts’ Open Day28 February, 2001 - Bratislava

2

AgendaSlovnaft introduction

General Market Information and Production Overview

Business Overview

Financial Information

Joint Strategy, Synergies and Improvement Targets

Q&A session

Slavomir HatinaSlovnaft CEO and Chairman

Vratko KassovicSlovnaft VP Strategy

Béla CsehSlovnaft VP Sales and Marketing

Heimo TomannSlovnaft CFO

Zoltán ÁldottMOL CSO

3

Slovnaft IntroductionSlovnaft Introduction

Slavomir HatinaSlovnaft

CEO and Chairman of the Board

4

Slovnaft Group’s position� High quality refining configuration

� Unrivalled domestic market share

� Strategically positioned to capture growing Polish, Czech and

Austrian oil product markets

� Listed on the Bratislava Stock Exchange (Reuters: SNFT.BV)

8

36

142

29

8

3

Slovakian State MOLInstitutional investorsPrivate investorsSlovbenaSlovintegraBONY

Shareholding structure (approximate %)

5

Partnership rationale

� Leading position, dynamic role in Europe’s fastest growing downstream markets

� Creating a superior regional refining and marketing group through financial and operational excellence

� Focus on value creation and realisation of synergies� Transfer MOL’s financial and restructuring

experience� Combined industry knowledge and financial

strength

6

HumanHumanResourcesResources

JolanaJolanaPetrasovaPetrasovaSlovnaftSlovnaft

StrategyStrategy

VratkoVratkoKassovicKassovicSlovnaftSlovnaft

C E OC E OSlavomir HatinaSlavomir Hatina

SlovnaftSlovnaft

ProductionProduction

Jan Jan KavecKavecSlovnaftSlovnaft

FinanceFinance

HeimoHeimoTomannTomann

MOLMOL

CorporateCorporateServicesServicesLászlóLászlóFeketeFeketeMOLMOL

RetailRetailNetworkNetworkKárolyKárolyRobákRobákMOLMOL

MarketingMarketing

Béla CsehBéla CsehMOLMOL

Management Team

• Four Vice-Presidents nominated by MOL

• 14 key management positions filled with MOL delegates

• New management structure operational from January, 2001

Board of directors4 Slovnaft, 4 MOL

Supervisory board

7

Employees of Slovnaft Group

� Rationalisation of parent company and subsidiaries will

be reviewed by end-2001

� High level of education

01 0002 0003 0004 0005 0006 0007 0008 0009 000

1998 1999 2000

Slovnaft Subsidiaries

8 0827 540

7 106

8

General Market Information and General Market Information and Production OverviewProduction Overview

Vratko KassovicSlovnaft

VP Strategy

9

Demand upside potential

Source: Petrofinance Country Profiles 2000

0

100

200

300

400

500

600

SK H PL CZ SLO B F A D I

cars

/100

0 pe

ople

0

0,5

1

1,5

t/ pe

ople

Cars/1000 people, (l.h. scale) Motor fuel consumption per capita (r.h. scale)

10

Growing gasoline market

Market 2000: 13.9 Mt2003: 15.2 Mt

Annual growth: 3%

demand: 5500 ktCAGR: 5.5%/year

demand: 800 ktCAGR: 3%/year



demand: 2020 ktCAGR: -4%/year




PL

CZ

SK H

ROA

HR

SLO

11

Strong demand for diesel

Market 2000: 24.0 Mt2003: 26.2 Mt

Annual growth: 3.5%






demand: 1800 ktCAGR: 5%/year demand: 2640 kt

CAGR: 2%/year


PL

CZ

SK H

ROA

HR

SLO

12

� Austria– continues to be a net importer in diesel– OMV's supplies to Hungary and Slovakia will continue, mostly to its captive

market � limited threat

� Poland– Net importer of motor fuels– Heavy refining investments completed, improvement in product quality– Lack of strong logistic background for major refiners

� Czech Republic– Production of motor fuels increasing due to new FCC investments– Significant market share held by Slovnaft– Logistics: direct threat to Slovakia

� Croatia– INA, with limited financial resources and it’s "step by step" approach in

quality-issues � limited threat to MOL

Competitive situation

13

� Austria– Schwechat refinery - capacity of 210,000 bpd– FCC & Visbreaking refinery, including Steam cracker

� Poland– Plock refinery – capacity of 260,000 bpd, complex refinery with FCC,

HCK, RHC, including Steam cracker– Gdansk refinery – capacity of 72,000 bpd, HC

� Czech Republic– Litvínov – capacity of 96,000 bpd, HC, TC, including steam cracker– Kralupy – capacity of 66,000 bpd, FCC, MTBE

� Croatia– Rijeka refinery – capacity of 150,000 bpd, FCC, production of fuels,

lubricants, bitumens and chemicals

� Slovnaft : 110,000 bpd ; MOL Duna: 165,000 bpd

The Main Competing refineries

Abbreviations: FCC–fluid cat. cracking, HC–hydrocracking, MHC-mild hydrocracking, RHC-residue hydrocracking, TC-thermal cracking, MTBE-methyl,terc-butyl ether,

14

��

��

High complexity, high value products

%

Source: Petrofinance - Country Profiles 2000

* residue hydrocracking completed early 2000** delayed coker to be completed in 2001

** *Comparative conversion ratios

0

10

20

30

40

50

60

Austria INA Czech Rep. Poland Duna Slovnaft

15

Gasoil desulphurisation in b/dCrude capacity b/d * 100Calculation:

Good position to meet EU standards

Comparative desulphurisation index

0

10

20

30

40

50

Austria INA Czech Rep. Poland Duna Slovnaft

16

Parameters Unit EU 2000 HEU AEU SKEU Slovnaft CZ PL

Gasoline

Vapour pressure(in summer) kPa max. 60 60 60 60 60 70 70

Sulphur content ppm max. 150 150 150 150 20-40 500 500

Benzene content % V/V max. 1 1 1 1 0.4-0.8 5 5

Aromatic content %V/V max. 42 42 42 42 30-40 - -

Diesel

Density kg/m3 max. 845 845 845 845 835-840 860 860

Sulphur content ppm max. 350 350 350 350 280-300 500 500

Cetane number min. 51 51 51 51 51-52 49 49

%V/V

*EU in index means the given country undertakes to introduce EU specifications;Slovnaft in preparation for year 2005 specifications

Exceeding EU product specifications

17

Highly profitable refineries

Source: Wood Mackenzie’s 1999 multi-client study ‘The Future of European Refining’

Impr

ovin

g A

uto-

Oil

Pos

ition

IncreasingNet Cash Margin

Median RefinerNet Cash Margin

Median RefinerAuto-Oil Position

Duna

Bratislava

18

Slovnaft – key strengths

� Market leadership in Slovakia� Significant market share in Czech republic� Well positioned for growing Polish market � High level of complexity and EU quality products� Integrated, balanced refining and petrochemical

assets� Reliable and economical utilities production –

power, heat, water� Production integrated with distribution network

19

Production OverviewProduction Overview

20

AtmosphericDistillation(2 units)

VacuumDistillation(2 units)

Hydrocracker

FCC

LC Finer

Hydrotreaters(3 units)

Gas Plant(2 units)

C 5 /C 6 Isomerisation

CatalyticReformer

VGOHydrotreater

MTBE Alkylation

Light naphtha

Propylene

Vacuumresidue

Atmosphericresidue

Heavynaphtha

Light naphtha

Heavynaphtha

LPG

EthaneFeedstock toEthylene Plant

Feedstock toAromatics Plant

Polypropyleneand Cumene

feedstock

Aromatics discards

C 4 s fromEthylene Plant

Fuel oil

Diesel

Kerosene

Gasoline

LPG

Crudeoil

SelectiveHydrogenation

Existing process units

New process unitsadded by HPRU Project

LubricantsPlant feedstock

Vacuum gas oil

LCO

Slurryoil

Bitumen

Asphalt Plant

Note: Hydrogen production units and flows of hydrogen-rich gas not shown

Feedstock ton-Alkanes Plant

n-Alkanes raffinate

Lube extracts

Reformate

Refinery configuration

21

Key refinery parameters(Plant as of 2000) Annual Capacity Utilisation Start-up Technology

Kt %Atm. distillation No 5 2700 97 1967 DomesticAtm.-vac. distillation No 6 2700 102 1971 DomesticVGO Hydrocracker 800 102 1990 UNOCALCCR Reformer 800 83 1998 UOPC5/C6 Isomerisation 250 64 1992 UOPGO Hydrotreaters 1800 94 1962-1973 DomesticGas plant 400 48 1962-1982 DomesticAsphalt Oxidation 270 16 1987 DomesticLube Oils 100 39 1962 DomesticHPRU: Residue Hydrocracker 1200 81 2000 ABB FCC 850 81 1999 UOP VGO Hydrotreater 1000 93 1999 UOP Alkylation 165 81 1999 Stratco MTBE 55 61 1999 IFP S recovery 90 57 1998 Stork

22

Yield after (2001)Yield before (1999)

� Investment of USD 526 mn to convert heavy fuel oil into higher value products by heavy petroleum residue upgrading

� LC-Fining technology supplied by ABB Lummus. Chiyoda, Mitsubishi, Stork, Raytheon were selected contractors

� Gross margin impact of HPRU is around 1.8 USD/bbl

Major upgrade completed

18 %

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,0005,500

kt

20 %

37 %

23 %OthersFuel oilJetGasoilGasoline

33 %

48 %

3 %16 % %%

18%

23

Petrochemical PlantsE th y le n e

P la n tE th a n e

L P G

L ig h tn a p h th a

H e a v yn a p h th a

P h e n o l

L D P E

P ro p y le n e

C 4 s to S e le c tiv eH y d ro g e n a tio n

L D P E P la n ts(3 u n its )

P o ly p ro p y le n e

P o ly p ro p y le n eP la n ts (2 u n its )

E th y le n e

B u te n e s

R e fo rm a te

A ro m a tic sP la n t

E th y le n eO x id e

E th y le n eG ly c o ls

E th y le n e o x id e

E th y le n e g ly c o ls

E th y lB e n ze n e

E th y lb e n ze n eB e n ze n e

T o lu e n e , x y le n e s

A c e to n eC u m e n e

H y d ro tre a te r

K e ro s e n e

n -A lk a n e sP la n t

n -A lk a n e s

R a ffin a te tod ie s e l b le n d in g

A ro m a tic s d is c a rd s tog a s o lin e b le n d in g

C u m e n e P h e n o l / A c e to n e

S o lv e n ts

P yro lys isG a so lin e

24

Key Petrochemical plant parameters

Plant (as of 2000) Annual Capacity Utilisation Start-up Technologykt %

Ethylene Plant 200 103 1975 LummusLDPE 168 111 1964-1977 ICI, Eth. PlastiquePP 70 114 1972-1981 ChissoAromatics Plant 400 68 1973 LurgiEthylene Oxide 40 114 1976 ShellPhenol/Acetone 35 97 1966 Domesticn-Alkanes 55 86 1989 UOP

25

Production targets

� Aiming to run Bratislava Refinery above 90% utilisation� Maintain high quality level of products� Further reduction in processing costs� Improve Health, Safety and Environment performance

26

Business OverviewBusiness Overview

Béla CsehSlovnaft

VP Sales and Marketing

27

Crude oil supply structure� Russian Export Blend Crude Oil via

Friendship pipeline� Adria pipeline connection (4 mn tpa) via MOL� Crude oil storage – Slovnaft 190 000 m3,

Transpetrol 100 000 m3 (store Slovnaft�s crude in its facilities)

� Transpetrol (capacity 21 mn tpa)� Average transport and storage fee is around

0.4 USD/bbl within Slovakia

28

Transportation and storage

29

Capacities of transportation(m3/h) and storage (m3)

7 1004800 (2 700)9 20033 000Diesel

190 000Crude oil

7 560 (4 860)3 450 (2 780)14 500 (10 200)30 000Storage :

Gasoline

---150barges

--180180pipeline

190150400195road

250-180280Output : rail

150-3601 200pipeline

15095400Input : rail

StožokKapušanyKla�anyBratislava

30

Competitive products logisticsExcellent geographical location

� 3 dynamically growing markets well within reach� direct pipeline contact to Czech Republic� Danube river transport possibility to Austria and between the

two refineries

Efficiency improvement opportunities identified� Slovnaft-Benzinol integration� outsourcing of non-core activities

02468

101214

pipeline rail barge truck

USD

/t/1

00 k

m

2000 2003

31

Gasoline supply-demand balance 1999-2003F

1 000 kt g as o line in

20001999 2001 2002 2003

Reg ion total

408-647

6511,465 1,575

32

Gasoil supply-demand balance 1999-2003F

1 000 kt gas oil in

20001999 2001 2002 2003

Reg ion to tal

-2 170-2 705 -2 220 -2 680 -3 188

33

� Market leadership and price setting role in Slovakia

� Significant exporter to surrounding countries

� Outstanding, reliable product quality

� Knowledge and experience of the market and customers

� Integrated company with a strong asset/capital base

� Comprehensive/integrated services

Strong position in wholesale

34

Group sales by market - (2000)

By volume 4 686 kt

32%

68%

By revenues USD 1 453 mn

34%

66%

Domestic Export

35

Group sales by product - (2000)

By volume

21%

3%1%1%

29%

43%2%

By revenue

1%2%

8%

3%

17%

30%

39%

Gasoil GasolineJET LubricantsLDPE PPother

36

Domestic sales by product and channel

0

500

1,000

1,500

2,000

2,500

1997 1998 1999 2000 2001F

kt

other

Aviation fuel

Fuel oil

Gasoline

Diesel

0500

1000150020002500

1997 1998 1999 2000 2001F

kt Other

multinational

transport

industry

agriculture

37

Export sales by product and market

0500

1,0001,5002,0002,5003,0003,5004,000

1997 1998 1999 2000 2001F

ktother

Aviation fuel

Fuel oil

Gasoline

Diesel

0

1000

2000

3000

4000

1997 1998 1999 2000 2001F

ktOther

Austria

Hungary

Poland

Czech R.

38

Slovnaft´s wholesale market share

50

60

70

80

90

1997 1998 1999 2000

SK %

0

10

20

30

40CZ, PL %

SK gasolines SK diesel CZ gasolinesPL gasolines CZ diesel PL diesel

39

Business OverviewBusiness Overview

Retail OverviewRetail Overview

40

Historical background

� Before 1949 the service station network operator wasSlovnaft‘s predecessor Apollo

� 1949 - Separation of businesses :Slovnaft - refiningBenzinol – retail activities

� 1992 - 87 service stations and 3 distribution terminalstransferred from Benzinol to Slovnaft

� 1995 Benzinol acquisition by Slovnaft� From 1998 Slovnaft Benzinol became Slovnaft‘s retail operator� From 2000 onwards MOL - Slovnaft partnership

41

Current status

Sales in 2000:• Motor fuels 445 mn litres

Network in Slovakia :• 316 Service stations

(105 under Slovnaft 211 under Benzinol logo)

• 314 CoDo, 1 DoDo, 1 CoCo• 72% cash transaction, 25%

Slovnaft-Benzinol cards, 3% other

05

101520

Shop Lubes Services

USD mn

42

Market share in Slovakia (2000)

5%

2%

1%

2%

1%

25%47%

4%

10%

3%

Slovnaft Benzinol

ACORD

SHELL

Transpetrol

OMV

TAMOIL

CONOCO

ESSO

MOL

Other

By number of sites

28%

4%

10%2%18%

1%

1%

2%

2%

32%

By volume sold

43

Potential to grow throughput

Average sales1.6 mil. litres/year

0 50 100 150 200

0 - 1.5

1.5 - 3.0

3.0+

mil.

lite

rs /

year

/ st

atio

n

No. of stations

44

Non-fuel sales revenues potential

0

2

4

6

8

1999 2000

US

cent

/per

lite

r fu

el so

ld

Shop Services

45

Growth from services offered

Nonstop

WC

CREDITCARD

CHANGE

46

Growth potential in the region

316 sites

3 sites

2 sites

40 sites

47

Growth from Fuel Cards� Fuel card program for fleets:

– 5000 customers, 50 000 cards, 110 mn litres fuel sales� Card Categories

– Gold card - both fuels and services– Silver card - only fuels– „Prezent” card – prepaid chipcard

� Card acceptance:– 316 Slovnaft Benzinol stations– 250 competitor stations

48

„BONUS“ loyalty vs. other transactions

• 100 000 loyalty cards (Bonus) issued• 40% of transactions involved the loyalty system

40%

60%

BONUSOther transactions

49

Improvement of the existing network

� Customer satisfaction

- customer focus

- improve quality of service and operational standards

- redesign the station’s interior to create customer

friendly atmosphere

� Network rationalisation

- focus on improving throughput and adding sites with

high throughput potential

- rationalisation of low performing sites

50

Objectives of network development

� Increase of the average throughput from 1.6 mn litres/year to 2.5 mn litres/year within 3 years

� Build new high throughput sites and reconstruct minimum 13 sites/year in Slovakia

� Extend the network with greenfield investment and acquisitions in South-Poland and the Czech Republic

� Review Ukrainian position

51

� Increase throughput and profitability of stations with marketing

tools and improved product mix

� Develop conditions of operational form (CoDo), establish more

effective co-operation with dealers/operators

� Increase non-fuel sales through convenience store and fast food

� Flexible, selective pricing for fuels and shop products

� Develop and extend customer loyalty

� Joint MOL/Slovnaft development of the fuel card system, mutual

acceptance, further increase of the customer base

Future steps

52

Financial InformationFinancial Information

Heimo TomannSlovnaft

Chief Financial Officer and VP Finance

53

Financial highlights of Slovnaft

* Preliminary, unaudited figures for year 2000** Capital Employed = Total assets - (L-t financial investments +

investment in process + S-t investments and cash + total current liabilities) + S-t debt

*** EBITDA Margin = EBITDA / Net Sales Revenues**** ROACE = Operating Profit / Av. Capital Employed

IAS group figures (mn USD) 1998 1999 * 2000 % 99/00Net Sales Revenues 985 1 036 1 552 50Operating Profit 109 73 175 140EBITDA 156 136 249 83Profit after Taxation 7 (58) 54 n.a.CAPEX 278 61 21 (66)** Capital Employed (year end) 1 076 880 940 7

*** EBITDA margin (%) 15.8 13.1 16.0 22**** ROACE (%) 10.8 8.1 20.2 149

54

Gearing and Debt StructureDebt stucture (end-2000)Total debt: USD 422 mnNet debt /(net debt+ equity)

0%

10%

20%

30%

40%

50%

60%19

98

1999

2000

2001

E

2002

E

2003

E

Slovnaft

Long term gearing target 30 - 40 %

Long Term56%

Short Term44%

Others17%

USD74%

EUR9%

55

CAPEX development

• Refinery modernisation completed in 2000• Focus on retail network upgrade and expansion• 2002 and 2003 indicative numbers only, under review

0

50

100

150

200

250

300

1998A 1999A 2000A 2001P 2002E 2003E

USD

mn

56

Key financial targets for 2002

(*) ROACE= Operating profit/average capital employed

(**) Gearing= net debt/(net debt+equity)

� EBITDA margin: 15%

� ROACE (*): 20%

� Gearing (**) keep within target range including any potential acquisitions

57

New Finance organisation� New organisation: Treasury, Controlling, Accounting&Tax,

Resource Allocation

� CFO with international industry experience + 5 Finance Professionals from MOL in key finance positions from 2001

� Focus on increasing shareholder value and realisation of synergies and improvements

� Focus on controlling and treasury:� Debt restructuring using MOL’s capital injection� Risk management policy and cash pooling in preparation � Revised Controlling structure based on segmented MIS� Strict Capital budgeting

58

Joint Strategy, Joint Strategy, Synergies and Improvement TargetsSynergies and Improvement Targets

Zoltán Áldott MOL

Chief Strategy Officer,Slovnaft

Vice-Chairman of the Board

59

MOL and Slovnaft together will have a leading position in Europe’s fastest growing markets

� Larger size, higher stability, better market reach

� Better geographical coverage of Southern Poland and Czech Republic

� Fast modernisation and efficiency improvements

� Utilisation of synergies

� Petrochemical integration and consolidation

� Cost-effective joint technological developments (economies of scale)

The winning combination

MOL/Slovnaftpartnership

State-of-the-arttechnology

Restructuringexperience of MOLapplied to Slovnaft

Strongest Europeandownstream growth

Financialstrength

Unrivalled marketshares in the region

Platform for furtherregional expansion

60

Synergies and efficiency improvements

� MOL - Slovnaft partnership : substantial synergy effects to be realised

� Identified Synergy and Improvement effects in Slovnaft add up toUSD 10 mn in 2001 and USD 28 mn p.a. from 2002 onwards

� Upside potential: Further areas of potential synergy and improvement identified at high level but not planned in detail (USD 11 – 25 mn p.a. from 2002 onwards)

� All effects are improvements against the initial pre-MOL business plan.

61

Areas of synergies & efficiency improvement

� Production

� Marketing

� Retail

� Logistics

� Finance

62

Identified effects in 2001 – by area

12.9

1.6

4.63.3

0

10

20

30

Production Marketing Retail Logistics Corp.Services

andFinance

US

D M

illio

ns

63

Identified effects from 2002 onwards

7.6

7.0

5.1

5.8

5.7

0

10

20

30

Production Marketing Retail Logistics Corp.Services and

Finance

US

D M

illio

ns

64

Details of identified areas - 1

Production � Production rationalisation

� Technological improvements in certain areas

� Stage 1 of joint production optimisation with MOL

Marketing and Commercial Sales, Logistics � Optimise and harmonise marketing approach in overlapping markets

� Improve sales planning and controlling process

� Integrate Benzinol and Slovnaft logistics

� Optimise rail and road transportation

65

Retail• Revise non-fuel business strategy

• Joint operation of MOL’s Slovakian network

• Revise fuel card acceptance policy

• Standardise network construction and maintenance

Corporate Services and Procurement • Standardise procurement processes

• Common purchase of chemicals, additives, other materials and services including IT

• Common investment implementation procedures

• Joint Auto-Oil II project planning and implementation


66

Finance • Reduce interest cost due to reduced debt level (capital injection)

• Better conditions for remaining debt

• Cash Pool-implementation (Slovnaft Group and later with MOL)

• Integrate risk-policy and operations

• Common insurance negotiations, captive insurance with MOL


67

� Joint crude purchases

� Production (joint optimisation of refinery and lubricants production stage 2, common R&D and maintenance)

� Integration of subsidiaries, increased efficiency

� Increased efficiency in all Slovnaft operations, improved systems and processes, reduced headcount, outsourcing of non-core activities

Further upside to be substantiated:

asas 68

Summary of identified and potential benefits

10

28

Min. + 11

Max. + 25

USDmn

0

10

20

30

40

50

60

70

2001 from 2002 onwards

Identified Potential min Potential max

69

Jointly agreed strategic priorities

� Crude supply strategy

� Joint logistics

� Co-ordinated marketing strategies

� Regional sales build-up

� Retail modernisation, expansion into Poland

� Refining capex (Auto Oil II)

� Lubricants strategy (combined with MOL’s)

� Petrochemical developments

� Rationalisation of non-core investment portfolio

70

Petrochemical OverviewPetrochemical Overview

71

Significant Synergies in ChemicalsRefining/Petrochemical interfaceCompensation of CF cyclesFeedstock supply flexibility (optimisation, seasonality)

Site integrationFocus on products per siteSales and marketing performance leverageEfficiency improvement at unit levelCo-ordinated expansion and development

PartnershipsFeedstock co-ordination

Market stabilisation (supply-demand balance, market positioning )

Quantification of benefits started on MOL/TVK/Slovnaft level

72

MOL - Slovnaft petrochemical portfolio

� Focused on the olefin-polyolefin value chain

� TVK and Slovnaft represent strong regional market shares

Product Producer Capacity (kt) Benchmarking of assets in 2000Ethylene TVK 360 Leader

Slovnaft 200 AveragePropylene TVK 185 Leader

Slovnaft 90 AverageSlovnaft (FCC) 50 Leader refining technology

MOL (FCC) 70HDPE TVK 190 LeaderLDPE TVK 115 Average

Slovnaft 168 Below averagePP TVK 280 Above average

Slovnaft 70 Smaller units

MOL is already an integrated regional oil company with chemical activities

Leader refining technology

73

Polimers - regional supply/demand structure

Polymers balance in 2000

100 kt Polyethylenes

100 kt Polypropylene

100 kt PVC

MOL’s target market will be increasingly net importer

74

LEGEND

SLOVNAFT

MOL

TVK

SALES

NON EXISTING / TO BE DIVESTED

Status and opportunities

� Until recently limited, except as feedstock supplier• Now important stakes/control in Slovnaft and TVK� Refining/petrochemical optimisation and integration

will benefit corporate performance

PLASTICSPOLY-OLEFINSOLEFINSFEEDSTOCKS

(from refining)

INTER-MEDIATES

AROMA-TICS

75

SummarySummary

76

Progress and next steps

� Detailed targets have been set

� Detailed action plan for synergy realisation will be completed by mid 2001

� Develop detailed elements of new strategy:� co-ordinated development activities� rationalisation� efficiency improvementwith expected completion date of end 2001

77

Implications for MOL

� Transaction confirmed as earnings accretive� Stabilised market position� Possibility for further consolidation� Production and marketing cost-cutting by jointly

optimised operation� Co-operation is going smoothly, exceeding expectations� Strong leverage of different skills and knowledge base

78

Summary of Slovnaft’s strategy

Slovnaft’s main strategic goals

� Strengthen domestic & Czech market position� Develop market position in surrounding countries, special

emphasis on southern Poland� Apply European fuel quality specifications� Strengthen competitive position by applying modern

technology & processes in refining and petrochemical production

� Fully exploit synergies with MOL as a strategic partner� Be a reliable partner to all stakeholders

Documents

Analysts’ Open Day · Slovnaft in preparation for year 2005 specifications Exceeding EU product specifications . 17 Highly profitable refineries Source: Wood Mackenzie’s 1999