1. Hernádi Zsolt Elnök- Vezérigazgató, MOL Group From a national player to an integrated international company Keeping up with the new environmental challenges continuously Heti Válasz- Figyelő konferencia 2008.november 26.

2. Agenda ► Journey so far, the main drivers ► How could we achieve our goals? ► The way forward 2

3. Starting point: state owned – national oil company Main characteristics: Inward looking Engineering driven Lack of business mentality Unclear investment criteria: financial, political, security Management instability Internal focus BUT: good technical and operational knowledge base 3

4. Privatization and regionalization Facing new challenges, new business approach… 4 psychological barriers: ►Cross the border ►Venture out from the region ►Venture out from the conventional oil business ►Step out form conventional corporate models ►State control is not a solution, it is a problem ►BUT: a Hungarian national firm is not viable in a global market  Access to capital  Project management  HR ►The choice: linger in state ownership; sell the assets to a multi or build a Hungary based multinational 4

5. Growth beyond regional borders Becoming a regional market leader Stabilization Preparations for privatization MOL history: Within 15 years MOL became from a state owned socialist corporation in international arena acknowledged player of the energy sector State property 0 19911995199920052010 5

6. MOL Group Cash Cow Step out of core regions Step out of core activities Step out of the existing business culture, structures ► generate cash ► return excess cash to shareholders ► step out of core regions in DS&US ► build up new international capabilities ► enter new businesses even unrelated to oil & gas with or without partners ► find appropriate partner to invest jointly and to prevent from unfriendly takeover What were the drivers? The way forward…? Need to be increasingly innovative in transaction structures and corporate governance models 6

7. MOL first mover in regional consolidation: acquisitions and partnerships 200020012003200220042005 Exploration rights in Oman Acquisitio n of 100% in Surgut- 7 Acquisition of 100% in BaiTex Acquisition of 100% in Matjushkinskay a Acquisition of 100% Tifon 20062007 Sale of Natural Gas Business Acquisition of 67% in Energopetrol (with INA) Exploration rights in Pakistan Increasing influence in TVK to 94.85% Acquisition of 100% IES Acquisition of 40% interest in a new offshore block in Cameroon Production Sharing Contract with the Kurdistan Regional Government Acquisitio n of 36.2% of Slovnaft Gain control over Slovnaft (stake 70.0%) Acquisitio n of Shell Romania n Retail Sites Acquisition of 25.0% in INA 98.4% stake in Slovnaft through public offer Acquisition of Austrian Roth company Closing of Shell Romania acquisitio n Acquisition of 32.9% of TVK Gain control over TVK (stake 34.5%) ZMB JV signed Acquisition of Austrian storage facility Acquisition of 22.5% stake in Kazakh exploration block (Federovsky) Increasing stake to 27.5% in Kazakh Federovsky Block Joint-venture agreement with CEZ 2008 Strategic co- operation with Oman Oil Company (OOC) 7

8. Key drivers ► Management with outstanding track record in operational integration and efficiency improvement ► Technology leadership: further investments to stay ahead of the pack ► Good timing of investment decisions ► High quality asset base ► Opportunity to purchase heavier, sour crude raw material ► High refinery complexity provides outstanding product slate ► Significant market position supported by complex logistics in a ‘landlocked’ environment ► Supply chain optimization along the whole value chain (refineries, petchem, retail) Crucial factor: state of the art asset base 8 Net Cash Margin (USD/bbl) in Europe by companies, 2007* Net Cash Margin (USD/bbl) in Europe by refineries, 2007* *Source: WoodMackenzie – European and Russian refiners, Net Cash Margin in 2007

9. To manage our transactions we have to develop our internal resources and be abreast of the environmental challenges as well 9 Key factors of our success At the same time keep up with the external environmental challenges continuously These are to be developed permanently Strong vision Settlement of internal resources Settlement of internal resources Focused approach Focused approach Management capabilities Management capabilities

10. The external environment has changed- Global economic downturn in reference to MOL 10 ► Falling oil price ► Macroeconomic change ► Weaker domestic demand: secondary effects on downstream sales margins ► Tightening liquidity Instinctive first reaction of the typical companies: everybody is panic-stricken

11. What can you do when alone in the dark? Stopping – lawnmower method Let’s reduce expenses at whatever cost ► Command & control ► Considering employees, development, innovation as cost-only factors ► Restricted future – development limited ► Sends a wrong message to employees: you are not a partner but an enemy ► Risk-taking related to market change MOL’s answer is different…:transformative change! Running – blind flying method Let’s continue and increase investments ► Command & control ► Reduces amount of cash, the flexibility of the company ► Frightens investors ► Sends a wrong message to employees: no cost control 11

12. MOL manages the crisis in an other way than the others do Changing the crisis into opportunity and chance Sustainable governance & business development = 12 The crisis might be the best opportunity to implement structural reforms for long term sustainable growth

13. We always want to win – so we do it another way Leadership of the management ► Save your future – think long-term ► Be quick and flexible - follow and adapt to changes continuously ► Step out of the box – answer challenges proactively ► Be cooperate – involve, rely on and lead employees ► Reassure investors – keep strong fundamentals, reappraise opportunities & strategy ► Improve efficiency – reconsider expenses and investments including all type of possible return and added value (indirect-direct, short & long term) Enhanced trust & credibility among all stakeholders 13

14. Continuous growth to position MOL for the post- crisis upswing Cost efficiency and CAPEX- discipline Sound, well-managed stress-resistant core business Post-crisis business approach Our aim is not the survival but to be among the best for the future as well 14

15. Thank you for your attention!