MOL GROUP PETROCHEMICALS MOL PETROCHEMICALS & SLOVNAFT THE LARGEST PLASTIC RAW MATERIAL PRODUCER IN CENTRAL EUROPE Open Doors Customer Meeting Egerszalók, 19.09. 2017 Peter Haltenberger Group Petrochemicals Business Unit Director

MOL GROUP… Core activities Is AN INTEGRATED, INTERNATIONAL OIL AND GAS COMPANY Is HEADQUARTERED IN BUDAPEST, HUNGARY Has a TRACK RECORD OF OVER 100 YEARS IN THE INDUSTRY Has LEAD POSITIONS IN OUR HOME MARKETS WITHIN CENTRAL EASTERN EUROPE Core activities CcS EBITDA CONTRIBUTION OF THE MAIN SEGMENTS IN 2016 (USD MN) ALL FINANCIAL DATA FROM 2016 UPSTREAM DOWNSTREAM GAS MIDSTREAM 675 1453 194

Key financial figures (2016) CCS EBITDA CAPEX CAPITALISATION NET REVENUE USD 2.15 BN USD 1.1 BN USD 7.3 BN USD 12.6 BN Operating Cash flow (USD BN) 2011 1.857 2012 2.014 2013 2.748 2014 1.863 2015 2.088 2016 1.843

8 8 UPSTREAM 75 years of experience in exploration and production Oil and gas exploration and production assets in 13 countries Core areas: CEE, Middle East & Pakistan, North Sea, Russia MOL 2030 strategy targets self funding and value generating business in a low oil price environment Committed to ensure safe, responsible and sustainable operations EXPLORATION PRODUCTION 8 8

6 DOWNSTREAM 4 refineries and 2 petrochemical plants Transforms crude oil into a range of refined products for domestic, industrial and transport use The products include, among others, gasoline, diesel, heating oil, aviation fuel, lubricants, bitumen, sulphur and liquefied petroleum gas Produce and sell petrochemicals worldwide and hold a leading position in the petrochemical sector in the Central Eastern Europe region PRODUCTION UNITS 6

CONSUMER SERVICES Own network of around 2,000 service stations under 7 brands across 10 countries in Central & South Eastern Europe SERVICE STATIONS ~2000 1 0 COUNTRIES

PETROCHEMICAL VALUE CHAIN Raw materials processed in 2016: 2,200 ktons Polymer sales in 2016: 1000 ktons Naphta, LPG, Gasoil, Propylene Ethylene, Butadiene sales Polyolefins Steam crackers Polymer units LDPE HDPE PP Plastic Producers MOL GROUP Downstream, Refining pygas, H2, i-butene Olefins Petrochemical plants Refinery Current annual feedstock transfer of 2.2 Mt from Refining to Petrochemicals… … and 530 kt from Petrochemicals to Refining The crude supply of MOL Refineries is ensured by pipelines from Russia and from Adriatic see as alternative. LPG: Liquefied Petroleum Gas

MOL Petrochemicals, Tiszaújváros site Slovnaft, Bratislava site PRODUCTion MOL Petrochemicals, Tiszaújváros site Slovnaft, Bratislava site Steam Cracker 2 290 ktpa Linde 2004 Steam Cracker 220 ktpa ABB Lummus 1975 Steam Cracker 1 370 ktpa Linde 1975 LDPE 2 65 ktpa BASF 1991 BDE 130 ktpa 2015 HDPE 2 220 ktpa Mitsui 2004 HDPE 1 200 ktpa Philips 1986 PP 4 180 ktpa Himont 1999 PP 3 100 ktpa Himont 1989 POLYETHYLENE (LD/HD) 40 ktpa ICI 1976 LDPE 3 90 ktpa CDF 1977 PP-3 255 ktpa Dow 2005 POLYPROPYLENE OLEFINS R E F I N E R I E S Ethylene sales ethylene propylene naphtha gasoil LPG by-products LDPE 4 220 ktpa Basell 2016 Crude C4 Butadiene sales

THE BIGGEST PLASTIC RAW MATERIAL PRODUCERS IN CE LDPE capacities in Europe HDPE capacities in Europe PP capacities in Europe Source: Nexant Butadiene capacities in Europe MOL Group Polymers is in TOP 10 European polymer producers and the biggest producer in Central Europe. Our competitive advantages Efficient assets Up-to-date product portfolio Integrated and optimized feedstock supply Strong regional position Proximity to rapid growth regions of Eastern Europe 2015 Capacity data

4.5 % Market share in Europe european player in polymer business 19 % Market share in CE 10 % Market share in CEE 4.5 % Market share in Europe Sales office We sold 999 kilotons polymer in 2016 to 45 countries (from Mexico to China) to ~ 1600 customers in 8 segments (from Automotive to Packaging) via sales offices operating in seven countries – in Germany, Poland, Italy, Austria, Romania, Croatia and Ukraine - as MOL subsidiaries. Frissíteni szükséges 2016-os keresleti adatokkal CEE: Central and eastern Europe CE: Central Europe

Petchem industry OUTLOOK Forecasting strong, 3%-5% global growth potential Other than ethylene derivatives are attractive for European naphtha based producers The global petchem industry continues to experience major disruptions. On the demand side a shift to faster growing Asian markets; on the supply side shale gas developments in the US and coal in China have altered the feedstock mix for petchem producers. These trends are challenging the business models for the key buliding blocks in the industry: E and its derivatives will be continued to be oversupplied from US based on cheap shale gas. EU crackers –which still rely on more expensive naphtha as feedstock must streamline their operations to improve efficiency and develop new higher value derivatives. P market will continue to experience supply constraints on short term and in response US companies should consider integrating upstream into new on-purpose routes. European producers need to rely on tight integration with refineries and product and feedstock innovation to remain competitive. BD value chain has been among the most significantly affected by the supply/demand movements, resulting in extreme price volatility. The primary reason is that the butadiene market is far smaller and minor changes in supply or demand can significantly alter the overall balance. In the coming years the most significant factor affecting the market is the growing tire industry in Asia, whose automotive market is booming driven by growth of middle class population. Aromatics: continue to be in short supply (due to closure of refineries and decreasing share of naphtha crackers), challenging refiners to increase yield/production and users of aromatics investing in stand-alone reformate units to secure supply.

Future of current assets olefins Steam cracker efficiency and reliability programme HDPE HDPE-1 lifetime extension project old unit, running from 1986 future after 2020: investment options under investigation unimodal or bimodal operation mode possibilities LDPE Mpc ldpe-2 product portfolio upgrade focus on more value-added grades after start-up SN LD4 unit Ktpa: kilotonnes per annual CAPEX: capital expenditure PP SN PP capacity intensification project increase up to ~280-300 ktpa

130 ktpa 220 ktpa 60 ktpa Extending the Petrochemicals Value Chain LDPE4 130 ktpa USD ~150mn Butadiene USD ~350mn 220 ktpa Synthetic rubber Ktpa: kilotonnes per annual CAPEX: capital expenditure 60 ktpa

FORWARD INTEGRATION OPTIONS ALONG THE PROPYLENE VALUE CHAIN Polyols – an attractive propylene derivative FORWARD INTEGRATION OPTIONS ALONG THE PROPYLENE VALUE CHAIN STRATEGIC OBJECTIVES Others II. Polyol I. Polypropylene Further analyses is in progress to recognize other attractive specialties Global market size: 26 mt/y Covers various segments Other Propylene Derivatives Semi-Commodity Polymer Global market size: 7 mt/y Investment into propylene oxide based polyols is targeted LTE: lifetime extension The biggest propylene derivative is PP which is a commodity polymer used in wide range of application segments from automotive to packaging, also representing ~ 50 % of MOL polymer sales. The economic unit size of a new PP plant is 300kt/year therefore moving towards PP and capturing market growth potential would require on-purpose propylene production since the amount of propylene available from own assets is insufficient to reach that level. The only lucrative option to produce significant amount of propylene is through propane conversion. In this case we would be exposed to external propane purchases limiting our ability to leverage feedstock integration. Furthermore a landlocked producer would have significant cost disadvantage against coastal units mainly due to transportation cost. Our primary diversification target shall be the polyol business. Polyol is the second biggest & dynamically growing derivative of propylene. It is a semi-commodity polymer priced as engineering plastics with main applications in automotive, packaging, construction, furniture and bedding. It is a dynamically growing and high-margin business where we could use both our regional competitive advantages as well as our own feedstock basis. This chain offers attractive investment options for MOL Group, with significantly more opportunities for specialties than the polyolefins currently produced by MOL. One step further other propylene derivatives offer a wide range of further opportunities with specialty and semi-specialty products besides the above mentioned two options. In order to explore other attractive directions MOL Group keeps on further investigating its options. This could mean further investments already in the next 5 years but it may be too early to define this at this stage. Forward integration into higher value added products, debottlenecking and LTE of existing units is planned Global market size : 58 mt/y Commodity Polymer

THANK YOU FOR YOUR ATTENTION