Summary

INTERIM MANAGEMENT REPORT OF MOL GROUP FIRST QUARTER 2012

First quarter 2012 results

In Q1 2012 EBITDA excluding special items (HUF 175 bn) was 6% below that of the previous year, however, higher by 15% compared to the previous quarter. Operating profit excluding special items (HUF 101 bn) dropped by 17% compared to Q1 2011 as a result of lower hydrocarbon production in Upstream and worsening external conditions in Downstream business. However, it is better by 60% than in the previous quarter as Downstream turned back to profitable after the loss making Q4 2011.

In Q1 2012 Upstream operating profit, excluding special items, decreased by 15% compared to the last quarter mainly due to the lower hydrocarbon transfer in Croatia towards the Sisak refinery. Hungarian performance was also heavily weighed by regulated gas prices. There has not been any revenue from Syria since October 2011, where INA announced “force majeure” on February 27, 2012. Downstream delivered better result compared to Q4 2011 due to moderately better external environment while optimization of feedstock selection and refinery operation had also positive impacts. However, depressed demand and further eroding petrochemical margin put pressure on results. In Gas Midstream, seasonally stronger quarter of domestic gas transmission business was offset by deeper losses at INA’s gas trading unit.

Mr Zsolt Hernádi, MOL Chairman-CEO commented:

“2012 is expected to be a challenging year especially when considering the announced “force majeure” in Syria or the tough refinery and petrochemical environment. Nevertheless, we believe MOL Group is well-positioned to realize an outstanding mid-term growth.

We have put strong efforts into exploration activities in Hungary, Croatia and Kurdistan Region of Iraq, at the same time our investment programs in Russia and Kazakhstan to develop the recently booked reserves have been accelerated as well. In the CEE region, especially in Croatia, EOR projects with significant investments are also in progress.

As a response to the extremely depressed Downstream business environment, a comprehensive program has been designed and launched in order to increase the profitability of the Downstream division, which will ensure the leading position of our core assets in the future, too. The new program aims to reach USD 500 - 550 million EBITDA improvement in the upcoming three years.”

► Upstream operating profit, excluding special items decreased by 11% to HUF 78 bn in Q1 2012 compared to the same period of last year. Positive effects of 19% higher realized hydrocarbon prices and stronger USD was overwhelmed by more negative effects such as (1) the severe impact of regulated Hungarian natural gas price for household costumers (2) lower CEE production level (mainly natural decline and severe weather conditions at Croatian offshore) and no realisation of any Syrian revenue since last October. Royalties on Hungarian production of MOL amounted to HUF 27 bn, which is 9% higher compared to the base period.

► Downstream realised an operating profit excluding special items of HUF 21 bn in Q1 2012, down by 45% compared to Q1 2011 results. Year-on-year profitability was negatively influenced by external factors, like tighter Brent-Ural spread or more depressed demand on products. Improving product slate with increased yield of marketable motor fuels just partly mitigated the negative effect of depressed environment. However, improved feedstock selection and refinery operation already had some positive impact which, along with a mild improvement in external conditions, led to an improvement compared to the operating loss of HUF 40 bn realized in Q4 2011, excluding special items.

► Gas Midstream segment’s operating profit, excluding special items accounted for HUF 12 bn in Q1 2012 decreased by 33% compared to Q1 2011. The most important positive profit contributor remained the FGSZ Ltd (gas transmission business), significant profit increase was driven by the termination of gas tariff freezing, which negatively influenced the base period. However Croatian Prirodni Plin (gas trading business) burned the segment results with HUF 15 bn operating loss.

► The net financial expenses were HUF 4.7 bn versus HUF 28.4 bn gain in Q1 2011. In Q1 2012 a re-translation loss on net investments of HUF 37.9 bn was set-off by the same amount of foreign exchange gain on designated bank loans (both accounted for in the translation reserve, within equity).

► CAPEX spending was HUF 38 bn (11% higher than in the previous year) in the first quarter of 2012. The investments focused on CEE region, Russia and Kurdistan Region of Iraq in Upstream, on Thermal Power Plant revamp at Bratislava refinery in Downstream.

► Operating cash outflow decreased by 32% compared to Q1 2011 and amounted to HUF 11.4 bn. Operating cash flow before movements in working capital decreased by 11% to HUF 159 bn.

► Net debt position increased to HUF 919 bn during the year, resulting in a 29.0% gearing ratio as of 31^th March 2012 compared to 28.0% at the end of 2011.