Outlook on strategic horizont

MOL continuously adjusts its operation to the external environment and became more international, more efficient and more upstream driven in the recent years. In 2010 approximately half of the Group EBITDA was generated outside Hungary, and two-third of total EBITDA was achieved at the Upstream division. Downstream integration strengthened in order to reinforce our regional stronghold position. WE expect the continuation of these tendencies. We aim to exploit the significant organic growth potential of our integrated portfolio by operating the existing asset base on maximum efficiency which integration of operation with INA remains the main driver.

In upstream the main objective for the forthcoming years will be to maximize the value of our existing portfolio, which is a solid basis for further growth with sizeable production in 7 countries and exploration potential in 11 countries. The focus will be on completing high return/early cash generative appraisal and development projects in Syria, CEE, Pakistan, Kurdistan Region of Iraq and Russia to increase production levels, contributing significantly to Group-level EBITDA, growth. Finally, we are carrying out extensive and intensifying exploration activity to further increase our reserve base and create the basis for further production growth beyond 2013.

Regarding the downstream business MOL Group’s main goal is to reinforce its regional stronghold position by focusing on market driven developments and efficiency improvement thus exploiting the gradually improving environment. The Group aim to elevate Rijeka refinery to similar levels represented by our key refinery assets.

In addition, we will focus to extend our well-recognised efficiency to the whole Group. In Upstream the focus will remain on Croatian onshore areas where the targeted USD 50 mn EBITDA improvement was already delivered in 2010 while in Downstream we target to reach USD 280 mn annual EBITDA improvement from 2013 versus 2009, major part of which is coming from harmonising the operation of 5 refineries and 2 petrochemical units under one integrated supply chain management system and improved energy management and maintenance processes.