One size does not fit all

Laszlo Varro, MOL Group

Agenda

► MOL’s way to international expansion

► How we have been doing it

► Conclusions

2

3

MOL Group today

Slovnaft ( 98.4 %)

INA ( 25.0%+1 share)

TVK ( 94.9%)*

*direct and indirect influence

► One of the best performingintegrated energy companiesin the world

► Leader in core markets ofHungary, Slovakia and inCroatia via INA

► State of the art asset baseserving a high growthdownstream region

► Highly successfulregional partnerships:Slovnaft, TVK, INA

► Management withoutstanding track record inoperational integration andefficiency improvement

► Market cap as of 04/06/2007USD 14 000 million

UPSTREAM (E&P)Gas

TransmissionE&P

DOWNSTREAM (R&M)

PetrochemicalsR&M

MOL Plc.

Operational integration

36,6

10,0

5,5

6,7

5,5

8,4

8,3

9,2

10,0Foreign investors (mainly institutional)

MFB Invest ZrtOTP Bank Nyrt

BNP Paribas

MOL Plc (treasury shares)Magnolia

Domestic investors

OMVBank Austria AG

Shareholding structure (%)(approximate) (10.09.2007)

0

2 000

4 000

6 000

8 000

10 000

12 000

1991 1995 1999 2005 2010

m USD

Market capitalization

Expansion beyond regional

boundaries

Transformation to a regional leader

Stabilization after

privatisation

Prepare for privatization

Successful transformation from a state-owned conglomerate to a leading regional private oil company

4

Acquisition of

36.2% ofSlovnaft

Gain control over Slovnaft

(stake 70.0%)

Acquisition of Shell

Romanian Retail Sites

Acquisition of

25.0% in INA

Acquisition of 22.5% stake in

Kazakh exploration block (Federovsky)

Acquisition of

Austrian Roth

company

Closing ofShell

Romaniaacquisition

Sale of Gas

Distribution

Acquisition of 32.9% of TVK

Gain control over TVK

(stake 34.5%)

ZMB JV signed

Acquisition of Austrian

storage facility

98.4% stake in Slovnaft

through public offer

Increasing stake to 27.5% in

Kazakh Federovsky

Block

MOL & INA acquired 67.5% of

Energopetrol

Acquisition of BaiTex,

Surgut-7

2000 2001 2002 2003 2004 2005 2006

Way to inorganic growth

5

ALGLBA

EGY PAK

KAZ

OM

YEM

SYR

ANG

RUS

RO

PRODUCTION

EXPLORATION

INA

Potential newcore markets

MOL

CRH

I

H

CR

Truly international operation in Upstream (exploration and production)

6

We are stepping out of our conventional Downstream region

PL

D

A

CZ

RO

BIH

SLO

SCG

BG

UKR

TR

AL

I

MK

HR

SK

GR

H

+6.5%

+3.2%

+3.1%

+3.1%

+3.2%

+3.2%

+3.7%

+6.0%

+3.2%

+3.6%

+7.1%

+3.9%+6.5%

+5.0%

+4.0%

Conventional investment markets

New targets

7

Expected motor fuel demand CAGR 2006 - 2010

+2.0%

+2.0%

Agenda

8

► MOL’s way to international expansion

► How we have been doing it

► Conclusions

MENTALMENTALCHANGECHANGE

INTERNATIONALINTERNATIONALEXPANSIONEXPANSION

INTERNATIONALINTERNATIONALEXPANSIONEXPANSION

INTERNALINTERNALCAPABILITIESCAPABILITIES

ONE SIZE DOES NOT FIT ALLONE SIZE DOES NOT FIT ALL

Market oppotunintyMarket oppotuninty

9

Building blocks of international expansion strategy

STRONG STRONG DOMESTICDOMESTICPOSITIONPOSITION

Mental change: Talents are distributed equally on planet

10

Why others not us?Why others not us?

from OPPORTUNISTIC from OPPORTUNISTIC …….. …….. to SYSTEMATIC to SYSTEMATIC

Confident REGIONALLY

DISCIPLINED corporate operation

Concentrate on COST

Become truly INTERNATIONAL

Develop an INTEGRATIVE corporate structure

Nurture DIVERSITY

Emphasize superior internal and external CUSTOMER service

Change while keeping our existing strengths: effective, result-oriented, adaptive, aspirational

PEOPLEPEOPLE

ORGANIZATIONORGANIZATION

CULTURECULTURE

FOCUSFOCUS

Create value through HOMOGENITY

Executing mental change Develop new capabilities

11

► Favourable geographical position

► Sole refiner in Hungary with 3

operating refineries

► Pipeline based supply with alternative

route (Adria)

► Dominant player in wholesale (cca.

80% market share)

► Market leader in retail

(cca. 40% market share)

► Balanced portfolio of international

upstream assets

► New management focusing on value

creation and efficieny improvement

Leveraging strong domestic market position – MOL in ‘99

D

PL

A

CZ

RO

BIH

SLO

SCG

BG

UKR

AL

I

MK

H

MOL depots used MOL refineries

Friendship oil pipelines Adria oil pipeline Product pipeline

12

Capability Development to Ensure International Operational Excellence 

13

OPERATIONAL CSF

1. Strengthen cooperation and integration with INA

2. Triple E&P production via international acquisitions

3. Double R&M production & sales4. Maintain quality leadership in

refining5. Develop central role in Gas

Transmission6. Diversify and sustain our crude oil

supply7. Establish a sustainable, scaleable

Retail operation and brand structure8. Achieve our efficiency improvement

targets

CAPABILITY CSF

9. Improve our ability to acquire new businesses & partners

10. Integrate new businesses quickly and efficiently

11. Become an international player

12. Develop change management and continuous improvement culture

INA ZMB Roth Slovnaft Shell Romania

Acquired ownership

25% 50% 75% 98.4% 100%

Business Downstream

& upstream

Upstream Downstream Downstream Downstream

Country Croatia +

subsidiaries

Russia Austria Slovakia + subsidiaries

Romania

Deal size Large Large Small Large Medium

FTE ~10 000 400 75 ~4 000 ~100

Assets Refineries, depos, FSs, upstream

assets

Oil field -production

Depo, FSs, tank cars

Refinery, depos, FSs

FSs, depo

Company acquisition

Strategic partnership

Joint-venture Yes Yes Yes

Partner Croatian government

Russneft Owner retained 25%

No, 1.6% free float No

Depth of integration

Close partnership, co-ordinated

actions

Joint-ventureOrganisational

structure remained intact

Integrated operation

Merged into MOL Romania

Keeping name / brand name

Yes n.a. Yes Yes No

„One size does not fit all” – adapting to local conditions is key for successful international expansion

14

Agenda

15

► MOL’s way to international expansion

► How we have been doing it

► Conclusions

„Must have”-s and „Can be”-s of becoming international

16

► Market opportunity is there

► We can have added value

► Synergy potential is important

► We have the capabilities (or

can build up) to capture value

creation opportunities

► Investment size

► Investment structure

► Rights

► Partners

► Ownership share

► Depth of integration

► Brand

We invest only if: We can be flexible at:We invest only if: We can be flexible at:

Why to doWhy to do How to doHow to do