Dr Kelemen BélaMOL Group Refining VP

2011. február 17. Veszprém

A MOL CSOPORTÉS HELYE A VILÁG OLAJIPARÁBAN

Oil industry - roots reach far back

3

Outline

► The driving force of the oil industry

► MOL Group – some highlights

► Upstream at a glance

► Downstream at a glance

Newhall Refinery California 1876;

1860. 15 refineries as a tea can 1. gasoline – air pollution2. Petroleum (75%) – the product3. Mazut- Heavy fuel oil - useless

capacity: 1-100 barrel/day

Beginnings of the refining industry

1910s: demand changes shapeFORD Model T, the turnaround point of mass motorization

• First assembly line production

• Produced from 1908 to 1927

• 16 500 000 cars sold total

• Only 93 minutes to assemble a car

• Price : $300 (about $3,400 in 2006 inflation-adjusted dollars

• In 1914, Ford, with 13,000 employees, produced about 300,000 cars while 299 other companies with 66,350 employees produced about 280,000 vehicles.

"Any customer can have a car painted any color that he wants so long as it is black." 5

Oil and military: a matrimony sealed by 2 world warsSince WWI, oil and politics go hand in hand

H.M.S. Queen Elisabeth, 1912 French tanks, 1917

WWII: the first globally fought war with internal combustion vehicles having the decisive role

Motorization in US and Europe

Growth of economy – growth of fuel consumption

Austria

China

Croatia

Czech Republic

Germany

Hungary

Italy

Poland

Romania

RussiaSerbia

Slovakia

Slovenia

0

100

200

300

400

500

600

700

800

0 5000 10000 15000 20000 25000 30000 35000 40000 45000

Cars/1000 habitants

GDP PPP

Car penetration curve

GDP/capita, ppp

(*) HEATING, SOLID FUELS, LUBRICANTS, ASPHALTS, PACKAGING

(30-40%)

CRUDEOIL

Distillation

Vacuumdistillation

LPG (4-5 %)

Naphtha (8-15%)

Kerosene (5-8%)

Fuel Oil(0-20%)

Gas treating

Gasoline reformulation

Desulfurisation

Residue Conversion

H2CrackingHeating Oil

Gasoline (30-40%)

Diesel

Coke & Bitumen(5-15%)

TRANSPORTFUELS

CHEMICAL FEEDSTOCK

OTHERS(*)

Tipical crude processing

9

Refining process: focus on motor fuels, yet flexibility is limited

Proved oil reserves at end 2008 (thousand million barrels)

Source: BP Statistical Review of World Energy 2009

~ 1250 thousand million barrels or 164 thousand million tons in total

Upstream global trends: massive demand boosts crude price

…and supply struggles to keep track, boosting prices and acquisition costs

Massive demand growth in Asia is expected to continue…

0

1

2

3

4

5

6

0

20

40

60

80

100

120

2005 2006 2007 2008 2009

Brent

Weighted avg. implied 2P reserve value

M&A implied reserve value has grown even more than crude price (USD/bbl)

78

79

80

81

82

83

84

85

86

87

Jan-0

3Ju

l-03

Jan-0

4Ju

l-04

Jan-0

5Ju

l-05

Jan-0

6Ju

l-06

Jan-0

7Ju

l-07

Jan-0

8Ju

l-08

Jan-0

9Ju

l-09

Jan-1

0

-1.5

-1

-0.5

0

0.5

1

1.5

2

2.5

3

3.5

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Global demand growth in 2010 exceeded all expectations, growth set to continue (million b/d) Global supply has been almost flat for years (million b/d)

Source: EIA

Source: IEA Source: EIA

Source: Herold

China: past examples hint at a runaway demand increase (million b/d)

11

0

200

400

600

800

Free Partly Free Not Free

Bill

ion

Bar

rels

Complexity and risk are to increase in upstream generally

12

► IOCs and independents are pushed towards the immature frontiers of upstream activity

► Technological complexity and extreme conditions require significant R&D and operational excellence

► Increasing project number and decreasing project size leads to more and more complex operational structures

Deeper wells

4.42 4.70 5.59+26%

2003 2007

10.379.959.53

2000

+9%

• Deeper wells require more drilling services

• Deeper wells require additional tool changes throughout the well program (e.g., additional strings of casing, additional bits)

• Penetration rates decrease substantially at greater depths due to harder rocks and higher rock stresses

Deep Water

Oil sands

Heavy oil

Middle East IOR

Arctic

Increasingly capital intensive environments

1990

164

2001

+6%

89

1990

104

2001

-8%

245

1990

10

2001

-4%

14

R/P ratio

Mbbl

Projects/yr

…with shorter longevity

…which are smaller…

More projects per year…

Onshore

Offshore

Global average well depth‘000 feet

Deeper wells

4.42 4.70 5.59+26%

2003 2007

10.379.959.53

2000

+9%

• Deeper wells require more drilling services

• Deeper wells require additional tool changes throughout the well program (e.g., additional strings of casing, additional bits)

• Penetration rates decrease substantially at greater depths due to harder rocks and higher rock stresses

Deep WaterDeep Water

Oil sandsOil sands

Heavy oilHeavy oil

Middle East IOR

Middle East IOR

ArcticArctic

Increasingly capital intensive environments

1990

164

2001

+6%

89

1990

104

2001

-8%

245

1990

10

2001

-4%

14

R/P ratio

Mbbl

Projects/yr

…with shorter longevity

…which are smaller…

More projects per year…

Onshore

Offshore

Global average well depth‘000 feet

►The average political risk of upstream investment is expected to increase

► Access to acreage will presumably be limited

Freedom in countries with the 12 largest oil reserves

13

Oil macro challenges

World oil demand and supply change

-1

0

1

2

3

4

2001 2002 2003 2004 2005 2006 2007 2008 2009

Mill

ion

bb

l/day

Consumption growth Supply growth

Source: Platts, EIA

► Stricter EU environmental regulations

► Widening gap between high and low quality products

► Dieselisation in Europe

► Increasing crude price…

► …driven by demand shock and slow supply adjustment

► Soaring exploration and production costs

Advanced management approach needed

Oil price

GasolineGasoilHFO

USD/t

14

Outline

► The driving force of the oil industry

► MOL Group – some highlights

► Upstream at a glance

► Downstream at a glance

1515

16

Small in the world…

Size of the logos are according to companies’ revenue in 2007

…so USA consumes MOL’s yearly refinery production in a week

…on the other hand Shell is „only” 9 times bigger then us regarding refinery capacity

The four oil giant in order of 2007 revenue

MOL Group covers ca. 0.5% of World total oil consumption: 480 th bbl/d vs cca. 85 000 th bbl/d

1.2.

3.4.

5%0,6%

Refinery capacities in the World

Shell MOL Group (incl. INA) other

17

Strong in the region

FuelsLPGBitumenChemical prod.Fleet CARD

4 American countries 4 Asian

countries

4 African countries

MOL Group sales directions

North Africa

Total sold volume*

19.9 Mt

Share of products in sales volumes

71%

19% 6%4%

Fuels

LPG

Bitumen

ChemicalProducts

*INA 47,1% owned but fully consolidated; data include INA 2010H2 sales vols

2008 sales

Hungary55%

Croatia21%

Slovakia8%

International16%

Strategic evolution of Mol Group from 2000 onwards

More international, more diversified, more efficient

2000 2005 20152010

Becoming a leading regional downstream player

International E&P expansion

Financial stability amid the recession

E&P-led growth, Regional stronghold in R&M

EBITDA by region

EBITDA by segment

Total 2010 EBITDA:USD 2.4 bn

E&P61%

R&M26%

G&P13%

18

► Leading European low cost onshore producer *

► One of the lowest lifting cost among European USplayers **

► Outstanding exploration drilling success rate

► Proved track recorded of successful project execution from geological surveys till massive production at major projects

► In house drilling and oil service companies

Upstream► Top refinery assets with one of the highest net cash

margin in Europe for a decade***

► Proven track record in cutting edge asset development and leveraging DS profitability

► Optimized joint DS value chain with 5 refineries and 2 petchem units

► Exceptional distribution system to serve markets

► Continuous efficiency improvement programs with USD …mn saved via … GJ/tonne energy intensity reduction between 2005 and 2010 (at 2010 prices)

Downstream

19* Herold

More efficient

** WoodMackenzie study (2003-2009)

What we achieved in the last 5 years

USD/boe Unit Lifting costs

4,7 5,0 5,78,2 6,1

11,6 9,5 11,0 13,1 11,2

05

101520253035

2005 2006 2007 2008 2009

peers avg.

23,2 25,7

16,8

27,621,3

12,2 11,7 11,117,6

8,0

-505

101520253035

2005 2006 2007 2008 2009

peers* avg

Net income per unitUSD/boe

20

The success of MOL Downstream Platts Award

► Platts* Global Energy Award has remunerates the best energy companies for 10 years, in 18 categories in 2008

► International judge has selected the finalists and decided about the winner

• 50 % of group EBITDA comes from Refining and Marketing• Record high EBIT of RM (USD 935 mn)• Europe top refineries regarding NCM• Outstanding Petchem results

2007 – Outstanding performance in each field

• Improve refining capabilities - starting hydrocrack project• Two bio-diesel plants in production • 2nd generation bio-diesel research with universities• Biologically degradable polymers

• Unique group wide supply chain management• Continuous efficiency improvement in operation • Sustainable development approach embedded in daily work and on strategic horizon

Three pillars to achieve goals:• Organic growth – asset development• Acquisition – IES, Tifon, INA consolidation• Partnerships – Oman Oil Comp.; CEZ

Financial result

Operation excellence Strategic vison

Innovation

21

#1 among European refiners since several yearsAmong 99 European refineries, MOL's Net Cash Margin is the highest

Source: Lehman Brothers

Non-USA downstream profit per bbl (H1 2006)

0 2 4 6 8 10

Eni

Chevron

ExxonMobil

Total

Group

ConocoPhillips

BP

Shell

Repsol YPF

OMV

PKN

MOL

US$/bbl

2006

22

R&M in MOL Group and its current Business Structure

Upstream Gas & Power Downstream Petrochemicals

Slovnaft ( 98.4 %)

INA ( 47.16%)

TVK ( 94.9%)

IES (100%)

Tifon (100%)

Energopetrol (67% with INA)

Roth (75%)

MOL Románia (100%)

FGSZ Zrt (100%)

MMBF Zrt (62%)

MOL Energy Trade (100%)

MOL-CEZ Zrt. (50%)

International Expl. Co.-s

ZMB (50%)

GES (100%)

Geoinform Kft (50%)

MOL Austria (100%)

Group Supply Chain Management

CommercialRefiningLogistics DS Development

Integration of resources, harmonizing and optimizing activities in all time horizons

Slovnaft Ceska R (100%)Slovnaft Polska (98%)MOL Slovenia (100%)

Intermol (100%)Mineralkontor, München (100%)

DOWNSTREAM

Integrated portfolio based on 3 pillars

UPSTREAM NEW ENERGY

► 665 MMboe SPE 2P reserves

► 135.5 Mboe/day production

► Producing in 7 countries

► Exploration in 14 countries

► 70-year experience in CEE, international presence for 20 years

►Significant reserve and productionbase with further exploration potential in the CEE region

►Well-positioned player in the Middle East/Central Asia

► 5 refineries

► 470,000 bbl/day refining capacity

► 1600+ filling stations

► Extensive crude and product pipeline system

► Strong landlocked position with access to the Mediterranean region

► 2 plants in Hungary and Slovakia

► 880 kt ethylene capacity

► 1.2 Mt polymer capacity

► The largest integrated olefin and polymer player in CEE

E&P R&M Petchem Gas Storing & Power

► 1.9 bcm capacity of UGS

► EUR-base return on storage

► Good geographical position

► Evaluate possible enter to power business

► NEV projects

Gas Transmission

Crude to plastic integrationUnbundling

23

Gas value chain

Electricity supply

► TSO in Hungary

► 5,560 km high pressure gas pipeline

►Hungarian + international transit

► Good geographical position

24

Outline

► The driving force of the oil industry

► MOL Group – some highlights

► Upstream at a glance

► Downstream at a glance

Russia

25

Production activities in 7 countries

Croatia, HungaryReserves: 373.2 MMboeProduction: 91,950 boepd

Hayan BlockReserves:55.9 MMboe Production:4,110 boepd

CroatiaReserves:62.3 MMboeProduction:14,140 boepd

ZMB Reserves: 43.2 MMboeProduction: 14,970 boepdBaitugan Reserves: 63.6 MMboeProduction: 3,040 boepd Matjushkinskiy BlockReserves: 30.5 MMboeProduction: 2,040 boepd Surgut-7 BlockReserves9.1 MMboe

Tal BlockReserves:13.8 MMboe Production:1,400 boepd

CEE onshore

Syria

Other International

CEE offshore

Pakistan

EgyptRas Qattara, West Abu Gharadig, North Bahariya, Sidi Rahman Angola3/05 Block, 3/85 Block,3/91 BlockTotal reserves:10.6 MMboeTotal production:3,860 boepd

Note: preliminary, non-audited SPE 2P reserves and pro forma production. Reserves and production of non-consolidated projects are not highlighted

Kazakhstan

Pakistan

Russia

26

Exploration activities in 15 countries

FederovskoyeRecoverable resource potential*:50 MMboe

CroatiaINAgip, EdINARecoverable resource potential*:15 MMboe

Tal, Margala & Margala North, Karak BlocksRecoverable resource potential*:150 MMboe

CEE onshore

Syria

CEE offshore

Hungary, CroatiaRecoverable resource potential*:145 MMboe

Aphamia BlockRecoverable resource potential*:25 MMboe

Other International

Cameroon, Angola, Namibia, Egypt, Yemen, Oman, IndiaRecoverable resource potential*:500 MMboe

Kurdistan Region of Iraq

Akri-Bijeel, ShaikanRecoverable resource potential*:590 MMboe

Matjushkinskiy, Surgut-7 BlocksRecoverable resource potential*:160 MMboe

* working interest recoverable resources to be drilled in 2010-12Note: further potential from non-consolidated projects, service contracts and unconventional projects

27

Outline

► The driving force of the oil industry

► MOL Group – some highlights

► Upstream at a glance

► Downstream at a glance

Danube

Bratislava

Swechat

LitvinovKralupyIngolstadt

Bayernoil

Gdansk

Plock

Burghausen

Sisak

RijekaBosanski Brod

Novi Sad PancevoMantua

Porto Marghera

S.M. Trecate

Sannazaro

Cremona

Busalla

Arpechim

Onesti

Petrotel

Petrobrazi

Rompetrol

Tough refining environment in Central Eastern EuropeSupply areas of regional refineries significantly overlap

Group refinery

Competing refinery

Tough refining environment in Central Eastern EuropeSupply areas of regional refineries significantly overlap

Danube

Bratislava

Swechat

LitvinovKralupyIngolstadt

Bayernoil

Gdansk

Plock

Burghausen

Sisak

RijekaBosanski Brod

Novi Sad PancevoMantua

Porto Marghera

S.M. Trecate

Sannazaro

Cremona

Busalla

Arpechim

Onesti

Petrotel

Petrobrazi

Rompetrol

Group refinery

Competing refinery

Tough refining environment in Central Eastern EuropeSupply areas of regional refineries significantly overlap

Danube

Bratislava

Swechat

LitvinovKralupyIngolstadt

Bayernoil

Gdansk

Plock

Burghausen

Sisak

RijekaBosanski Brod

Novi Sad PancevoMantua

Porto Marghera

S.M. Trecate

Sannazaro

Cremona

Busalla

Arpechim

Onesti

Petrotel

Petrobrazi

Rompetrol

Group refinery

Competing refinery

31

Continuous improvement of technology to retain leadershipYield structure in the last 40 years, Danube Refinery

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1965 1975 1985 1995 2005 2008

LPG

Gasoline

Naphtha

Jet Fuel

Middle Distillate

Chemical other products

Base Oils

Fuel Oil

Bitumen

Others

Bratislava Refinery 1980 - 1992 - 2001

Long term tendencies justify move towards complexity and diesel

•GDP is the main driver of dieselisation•diesel growth potential unchanged as

• no real alternative in freight transportation;• Passenger car penetration is still growing; • Dieselisation of private car stock also

continues•Increasing role of biocomponents, but bio-blending has a limited impact on diesel, due to massive demand growth (+12 Mt till 2020)

• EURO V Motor Fuel Specifications in SEE as well• Tightening marine fuel specification (0.1% m/m% by 1st Jan 2015 in ECA*) is expected in the Mediterranean as well• Environmental regulations force power plants to switch to alternative fuels from fuel oil

Tightening product quality regulations punish heavyproducts and simple refineries

Stable diesel growth on strategic horizon in CEE

35000

40000

45000

50000

55000

60000

65000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Room for further projects both on mid term (Phase 2) and on strategic horizont (DR HCK)

Diesel deficit remains/grows in CEE even after planned refinery projects

Refinery supply

Bio Supply

Regional imbalance

World oil demand growth by products

-1000

100200300400

2015 2020 2015 2020 2015 2020 2015 2020

Word FSU + Asia OECD Rest

Light distillates (naphtha/mogas)Middle distillate (gas oils/ jet)Fuel oil

2.3% CAGR (2010-2020)

Complexity is still crucial and diesel oriented projects are supported both from global (crack spread) and local (market) point of view in CEE

World oil demand growth by products

33

34

2010-2012 CAPEX: USD 2.0 bn

Quality leadership in Europe

►Introduction of sulphur free motor fuels►EU2009 requirements fulfilled in 2005►Compliance with bio-fuel and environmental regulations

Improve efficiency and focus on environment►Introduction of SCM philosophy►Improving the efficiency of energy utilization►Modernizing waste water treatment►Reduction of CO2, SO2 NOx emission

Huge investments for proper answers Investments aim to improve product yield, quality and efficiency

Expansion / Yield Improvement

Clean Fuels

Efficiency Improvement

Compliance

Sustain Operation

LPG

NaphtaMotor Gasoline

Middle Distillates Fuel Oil Bitumen

OtherOther chemical products

Ref. yield, 2010 E Ref. Yield, 2012E Long Term Target

Solid basis with outstanding organic growth opportunities

Bratislava RefienryCapacity: 6.1 Mtpy (122 thbbpd)NCI: 11.5

Danube RefienryCapacity: 8.1 Mtpy (161 thbbpd)NCI: 10.6

SN PetrochemicalsEthylene Capacity: 220 ktpyPolymer Capacity: 435 ktpy

Rijeka RefienryCapacity: 4.5 Mtpy (90 thbbpd)NCI: 9.1

Sisak RefienryCapacity: 2.2 Mtpy (44 thbbpd)NCI: 6.X

Mantova RefienryCapacity: 2.6 Mtpy (52 thbbpd)NCI: 8.4

35

Refining

Logistics NetworkXxx depot in xxx countries XX km oil and yyy km product pipeline

Logistics Distribution

Wholesale20% regional market share22.1 Mt sales volumePresence in 12 countries, market leader in 4 countriesXx % captive market

Petrochemicals

Retail Network1600+ FS7 brands in 11 countriesXx Mt total fuel salesAvr. throughput: 2.8 Mlpy19 % captive market for REF

TVK PetrochemicalsEthylene Capacity: 660 ktpyPolymer Capacity: 765 ktpy

Yy Mt external sales volumeXx % captive market for refineries

• the key DS player of the region • proved track record to develop and operate the most efficient refinery assets • region-wide LOG and WS network serve the market• strong captive manket supported by RET and PET• integrated business model through the whole value chain to exploit group level synergies

Strong asset base operated on adjacent market

NaphtaMotor GasolineMiddle Distillates

LPGBlack prd. + Sulphur

MOL Group refinery yield (2011) and sales volume increase in Mt

2007 2008 2009 2010

22.1

12.113.1 15.6

30%

16%

4%6%

3%9%

22%

46%

10%

45%

Retail – 1641 filling stations in 11 countries

36• Fully consolidated companies

• Market share data as Q4

•Retail captive market (2008)

70%

30%

85%

15%

•MOL excl. INA •INA

► Regional network operates under multi-brand structure with 3 international (MOL, Slovnaft, INA), 4 country-specific (IES, TIFON, ROTH, EP) brands

► 3.6 Mt fuel sales in the region

► 3.0 ml/yr throughput/station as regional average in own network

•Supply radius

Country Filling station(Sep 2009) Market share

Croatia (INA) 43 + 437

Hungary 363

Slovakia 209

Italy 220

Romania 135

Austria 47

Czech Republic 28

Serbia 32

Bosnia and Herzegovina (INA) 64 + 44

Slovenia (INA) 12 + 6

Montenegro 1

37

Key Figures of R&M Business

MOL Group Downstream (2009)

Sales volume 19.9 million tonnes*(incl. petchem feedstock transfer)

Processed crude oil 16.8 million tonnes * from this domestic 1,05 million tonnes*

Other raw material 2.86 million tonnes*EBITDA 113.1 bn HUF / 565 million USD*Capital Employed 700 bn HUF / 3,5 bn USD**Headcount* ~ 6000 empl.*

* INA 47,1% owned but fully consolidated; data include INA 2010H2 data** w/o INA

38

Key Features of the Duna Refinery (2009)

Area: 800 acres

Distillation capacity: 8.1 Mt/year

Processed crude (2008): 7 Mt/year

Number of plants: 49

Nelson complexity index: 10.6

Share of light products* in output: 78 %

Mechanical availability of plants: 97,2 %

Annual energy consumption: 600 th MWh

Number of employees: 1359

*LPG, naphtha, gasolines, gasoils, JET

39

Extended Supply Chain – Seven Units Optimization Model

Improvement potentials

Bratislava Refinery

Danube RefinerySisak Ref

Rijeka Refinery

Mantova Refinery

Mitigated risk of captured regional market supply by Global SCM control – continuous market supply

Increased utilization of the local unbalanced unit capacities by optimized transfers between the 5 refineries and 2 Petchem units

Increased global capacities by harmonization of refinery’ turn-around, maintenance activity

Decreased logistic costs by harmonizing common assets (tanks, pipeline network, railcars, ports), and integrating the local distribution system

Optimisation of seasonal product surplus channelling by sea exit – IES/Porto Marghera, Rijeka

Global supply chain optimization instead of individual refinery’ local suboptimum - boosting annual sales

40

Thank you for your attention

Backup

421990

1994 New MTBE plant, FCC revamp

1996

1992

1997 Gasoline blending

2001

1999

2003

2005

Bio-ETBE, New GHDS FCC

HDS TAME, Hydrogen unit

LN Isomerization revamp,Reformate redistillation

Euro-IVlimits 2005-

Euro-IIIlimits 2000-

Restructuring of gasoline production

2000 Delayed Coker, Hydrogen unit

Euro-V limits, 2009-

Tempo gasolines

EVO99 gasoline

EVOneo gasoline

MOL gasoline quality development: proactive steps

New units and revamps in Danube Refinery

43

Key Drivers of MOL Competitive position

•Pipeline connection•Own pipeline in HU •Alternative Adriatic route

Diversifica-tion of alternative suplly sources

•Heavier, sour crude: Brent-Ural spread•Domestic production

Sustain Domestic crude oil production

•Top complexity•Outstanding white product yield

Hydrocrack project increase further mid. dist. YieldUpgrading INA refineries

• Significant inland premium•Control key domestic infrastructures

INA ensure sea connection

• Strict maintenance by SSC

On-site power plants will increse energy eff. and security

•Complex logistics system•HR capabilities

Depot system in key export markets

KEY

STR

ENG

THIM

PRO

VMEN

TS

Integrated supply chain management along the whole value chain

44

Wood Mackenzie MOL

0

2

4

6

8

10

12

Configuration Crude Cost Location Crude Delivery Efficiency ProductDespatch

SCM

Key Drivers of Competitive PositionRefinery configuration is the single biggest driver of refinery competitive position but crude cost, crude delivery & location remain key to overall refinery profitability

Delta Best refinery vs Worst Refinery

$/bbl

Worst

Best

• Support long term refinery development by optimization• Common optimization of Downstream and Petchem• Joint optimization of group refineries (transfers)• Common operational supply and distribution scheduling (daily optimization already)

Additional advantage applying Supply Chain Management philosophy

45

Biofuels – managing sustainable criteria for biofuels will be essential for fuel suppliers

Update low bioblend scenarios

(E5/10, B5/B7) to meet the

targets

10% GHG intensity reduction target will force all fuel suppliers in the EU

to sell biofuels with the best GHG performance

REN e% target will force fuel suppliers through national

legislation to sell biofuels to meet national obligations

Biocomponent need will increase from 0.4 Mtpa in 2008 to 1 Mtpa by 2013 for MOL

Diesel: Challenging value chain

FAME production in MOL joint ventures (Rossi, Meroco) by 250 kt/yearMost efficient, integrated FAME production capabilities in CEE

Gasoline: Large scale of available capacities

Mid-term supply contracts with local ethanol suppliers

► Develop and maintain balanced and integrated positions along the entire value chain

► Monitor further opportunities for a diversified generation portfolio potentially including renewable sources

Long-term vision for New EnergyExpand into power to be a winner of decarbonization and to fully exploit existing G&P assets

► Policy push to fight climate change will require decarbonized power generation

► Coal-to-gas switch is by far the cheapest decarbonization option (with gas being a bridging fuel)

New Energy strategy

► Strong E&P equity gas portfolio to be utilized in Hungary, Croatia and potentially in Northern Iraq

► Key infrastructure assets along the G&P value chain

► Excellent geographical position of MOL Group's core markets to serve as a gas hub

Macro trends: climate change Key strengths to build upon

46

Crude supply security managed by diversification

Key opportunities for MOL group:►Continuous supply of MOL and SLOVNAFT refineries from Russia ►Flexible management of stock transfers between the two refineries►Purchase of crude oil cargoes through Adriatic Pipeline for refinery optimization►Opportunity to further harmonize crude purchase with IES

► EU export expected to be stable► Opportunity to extend long term supply contracts

Burgas – Alexandropolis pipeline projectTotal capacity: 15-24-35 Mt/y in 3 phases

First oil: 2009

Baltic Pipeline System 1-2Current capacity: 75 Mt/y

Total planned capacity 150 Mt/yEstimated finish construction: end of 2008

Primorsk crude export 2006: 62,5 Mt

Black Sea crude export 2006: 49 Mt

AdriaIES

Pipeline crude export 2006: 62,8 Mts

Adria

Source : IEA 2005

North America

-2 Mt

Africa

- 8 Mt

Asia

- 2 Mt

Latin America

- 7 Mt

25F.S.U.

+ 32 Mt

Middle East

+ 10 Mt

Europe

- 23 Mt

3 3

2

1

1

3

21

2

2

2

2

3

2

48

Demand not at the same place as supplyMain Diesel Trade Movements in 2007 (million tons)

Demand not at the same place as supplyMain Gasoline Trade Movements in 2007 (million tons)

49

19North

America

- 31 Mt

Africa

- 8 Mt

Asia-Pacific

+ 4 Mt

Latin America

+ 6 Mt

6 4

3

4

FSU

+ 8 Mt

1

Middle East

- 8 Mt2

Source : IEA 2005

1

1

3

2

1

1

Europe

+29 Mt