ANNUAL REPORT 2014ECONOMIC, SOCIAL AND ENVIRONMENTAL PERFORMANCEDOWNSTREAMUPSTREAM* As of 31 December 2014MEMBERS OF KEY FINANCIALAND OPERATING DATAKEY OPERATING DATAKEy UPSTREAM DATA* 2013 2014 13/14 (%)Total gross hydrocarbon reserves, SPE 2P (MMboe) 576 555 (4)Total hydrocarbon producton (mboepd) 104 98 (6)KEy DOwNSTREAM DATA* 2013 2014 13/14 (%)Total crude oil product sales (kt) 19,373 17,852 (8)Total retail fuel sales (m litre) 4,292 4,323 1Petrochemical products (kt) 1,302 1,126 (14)KEy GAS MIDSTREAM DATA* 2013 2014 13/14 (%)Hungarian natural gas transmission (m cm) 10,916 11,556 5.9ENVIRONMENTAL AND SOCIAL PERFORMANCE DATA** 2013 2014 13/14 (%)Carbon Dioxide (CO2) emissions (Mt) 6.2 5.8 (4.9)Lost tme injury frequency (LTIF) 1.5 1.0 (33.3)Total score in the Dow Jones Sustainability Index assessment 66 68 3* Detailed data analysis are in the Management Discussion and Analysis chapter.** Detailed data analysis are in the Supplementary And Sustainability Informaton chapter.2010201120122013201420102011201220132014OPERATING CASH FLOW (USD mn)GEARING (%)1,821 31.31,857282,01324.92,748161,787Producton 20142P Reserves*19.6555mboe18$ 4.7Refned Product and Petchem SalesMOL GROUP AT A GLANCEOWNERSHIP STRUCTUREService statons 2014*1.734 MtpaCapitalisaton USD bn*98 mboe/dThe Companys sharecapital amounts to HUF 104,519,063,578repre-sented by104,518,484pieces registered ordinaryshares of theseriesA with a parvalueof HUF 1,000and 578pieces registered ordinary shares of theseries C with a parvalueof HUF 1,001and onepiece registered votng preference share of the series B with a par value ofHUF 1,000 that enttles the holder thereof to preferental rights as spec-ifed in the present Artcles of Associaton. The "B" series share is ownedby the Hungarian Government.wehavepresented theownership structureof MOL Plc.,as at31 December 2014.Please note, that data above do not fully refect the ownership structure in the Share Register. The registraton is not mandatory. The shareholder may exercise its rights towards the company, if the shareholder is regis-tered in the Share Register.Accordingto theArtcles of Associaton no shareholderorshareholder group may exercise more than 10% of the votng rights.KEY FINANCIAL DATA - IFRS (HUF BN)* 2013 2014 13/14 (%) 2014 (USD MN)***Net revenue 5,400 4,867 (10) 20,975EBITDA 521 408 (22) 1,776CCS EBITDA 516 511 (1) 2,183 o/w Upstream 356 270 (24) 1,165o/w Downstream 157 206 32 874 o/w Gas Midstream 59 37 (37) 157Proft for the year atributable to equity holders of the parent21 4 (81) 47Operatng cash fow 615 435 (29) 1,787Capital expenditures and investments 270 534 99 2,277Return On Capital Employed (ROACE) % **(4) (0.1) N.A.* Detailed data analysis are in the Management Discussion and Analysis chapter.** Based on proft afer taxes*** Each month in 2014 is translated on its actual monthly average HUF/USD NBH rate01230123010203020102011201220132014CCS EBITDA (USD mn)2,7393,0632,5242,3082,183Foreigninvestors (mainly insttutonal)29.86MOL Invest Kf.(treasury shares)2.72Domestc privateinvestors5.55Domestc insttutonalinvestors6.15ING Bank N.V.4.99Magnolia FinanceLimited5.75OTP Bank Plc.5.89OmanOil(Budapest)Limited7.00Hungarian State (MNV Zrt.)24.74CEZ MH B.V.7.3501MOL GROUP INTEGRATED REPORTINGhis integrated Annual Report is a summa-ryof the performance of MOL Group in 2014. Integrated reportng in MOL Group means presentngtheeconomic, social and environmental aspects of the value creaton process in onecomprehensive report. MOL Group is commited to transparencyand considers integrated reportng to be the most efcient method for providing an overview of its performance to share-holders and to other interested stakeholders. Financialinformatonisdisclosedinthisreportin accordancewiththeInternatonalFinancialReport-ing Standards (IFRS).Sustainabilityreportngmeetsthecomprehensive requirements of the Global Reportng Initatves G4 sustainability reportng guidelines (including the Oil and Gas Sector Supplement). The scope and content isalsopreparedwithconsideratongiventoIPIE-CAsVoluntaryGuidanceonSustainabilityReport-ing and the materiality assessment. In the materiali-ty assessment, sustainability topics that are relevant fortheoilandgasindustryhavebeenrankedand classifedaccordingtotheirimportancerelatveto externalandinternalstakeholders.Thisreportis MOL Groups Communicaton on Progress according to the United Natons Global Compact.Thereportpresentshistoricalinformatonwhen-ever it is necessary to put annual performance into context.Thecontentofthisannualreportisalso availableinanelectronicformatonamicrosite (www.molgroup.info/annualreport2014).ThisannualreportispreparedinbothEnglishand Hungarian.Intheeventofanydiscrepancies,the English version takes precedence.FurtherinformatonanddisclosuresaboutMOL Group: www.molgroup.infoTMOL Group Integrated ReportingOVERVIEWMOL Group Integrated Reportng1About Us2Leter from the Chairman CEOand the Group CEO6Our businesses in pictures8Interview with Norbert Michelisz18OUR BUSINESSES AND OVERVIEW OF THE ENVIRONMENTOverview of the macroeconomic and industry environment22Upstream24Downstream36Gas Midstream - Natural Gas Transmission46MANAGEMENT DISCUSSION AND ANALYSISManagement Discussion and Analysisof 2014 Business Operatons52FINANCIAL STATEMENTS AND NOTESIndependent Auditors' Report82Consolidated Financal Statements (IFRS)84Notes to the Financial Statements92Historical Financial Informaton (IFRS)170SUPPLEMENTARY AND SUSTAINABILITY INFORMATIONConsolidated Operatng Performance Data174Consolidated Sustainability Performance Data (GRI G4)186Notes to Sustainability Performance190Independent Auditor's Report (Sustainability)221CORPORATE GOVERNANCECorporate governance226Integrated corporate risk management236Board of Directors238Executve Board244Supervisory Board248Report of the Supervisory Board250Corporate and Shareholder Informaton252Glossary256Shareholder Informaton260Table of contents262MOL GROUP IS NOWON A JOURNEYTO TRANSFORM THEBUSINESS.WE HAVEBIG AMBITIONSAND POTENTIALFOR GROWTH,WHICH WE WILLACHIEVE BYCOMBINING SCALE,PROFESSIONALISMAND KNOW-HOW,WITH ENERGY,INNOVATION,AND A WILLINGNESSTO LOOK FOR DIFFERENT,BETTER WAYSOF WORKING.01ContentsMOLGroupisanintegratedinter-natonaloilandgascompany, workingintheupstreamand downstreamsectors,actvein around40countriesacrossthree contnents,withadynamicinternatonalworkforce of nearly 27,500 people and a track record of more than 100 years in the industry.In the past the focus was on downstream primarily, however,wealsoseegreatgrowthpotentalin upstream,andweareleveragingtheexpertseof our people to realise these opportunites. wehaveleadpositonsinourhomemarketsin Central Eastern Europe, but to realize our ambitons and grow in new markets for the future, we are now on a journey to transform the business. we're constantly working towards being the invest-mentofchoiceinoursector,thepartnerofchoice inourindustry,andtheemployerofchoiceforthe brightest and the best.we have big ambitions and potential for growth, which we will achieve by combining scale, profes-sionalismandknow-how,withenergy,inno-vation,andawillingnesstolookfordifferent, better ways of working.To be the energy of positive change.A passionate ambition to be the best. The courage to challenge, in order to fnd a better way. The positive power of working together towards a shared success.What drives us all in MOL GroupWhat connects us across the whole MOL Group40COUNTRIES ACROSS THREE CONTINENTSDYNAMIC INTERNATIONAL WORKFORCEINTEGRATED INTERNATIONAL OIL AND GAS COMPANY27,500PEOPLE100YEARS IN THE INDUSTRYOVER03About usOUTLOOK2014 was a challenging year, but the strength and resilience of MOLs integrated business model meant that we could deliver great results even as oil prices halved. Looking ahead, having achieved the right balance between Upstream and Down-streamwill allowMOL to maintain and growits proftability even at reduced oil prices. Although a low oil price is a challenge, its is equally an opportunity, as our increasingly integrated busi-ness model is well-positoned to take advantage of changes in the market, as the strength of our balance sheet will allow us to seek new atrac-tve inorganic opportunites should opportu-nites arise. For Upstream, we will contnue to increase producton in the coming years, keeping the reserves replacement rato at current levels or above, while aiming to maintain a strict cost control. As for Downstream, a lowoil price is posi-tve, but given the long term structural trends likely to shape the sector, MOL cannot rely on a favourable cyclical environment as the driver of proftability. As such, the Next Downstream Programwill target additonal efciency improve-ments, whilst the extension of the petrochem-icals valuechain and the expansion of theretail network will further contribute to a sustain-able growth in proftability. Ultmately, behind all growth and proftability targets lies a robust fnancial foundaton, which will contnue to be the frms highest priority, as we seek to lay the foun-datons for future growth in 2015 and beyond. USD 2 bnCLEAN EBITDATARGET IN 2015UPSTREAM:AROUND10%PRODUCTIONGROWTH IN 2015GROUP:DOWNSTREAM:ADDITIONAL USD0.5 bn GROWTHBY 2017 TO REACH USD 0.9 bn NORMALIZED FREE CASH FLOWAwardsERE Recruitng Excellence AwardfromERE.net for Best CollegeRecruitng Programs 1st place1stPLACETraining & Development ExcellenceAward fromAsia Employer BrandingInsttute for Best LeadershipDevelopment Programs for Top andMiddle Management1stPLACELeadership 500 AwardfromHR.comfor LeadershipDevelopment Excellence1stPLACEBest Corporate Governancein Croata / World Finance,Britsh fnancial newspaper1stPLACE1stPLACEAward for the quality ofservice at the petrol statonsHeraklea agencyEnergy Globe Natonal Award(EGNA) (the frst zero-carbon, solar-powered sustainable servicestaton in the world)1stPLACEMOL Hungarys New Europe FoundatonsChild Healing Programreceived the Hungarian Donors ForumSupport programwith the highest impact award3rdPLACEINA was ofcially awarded recognitonwith an Employer Partner Certfcatefor its excellence in human resourcesmanagement. (for the 4th year in a row)Employer Partner CertfcateRecogniton for contributon of businesssector to the development of volunteering/ Volunteer Centre Osijek with the support of The Council for the Development ofVolunteering.Class A ranking in Bisnode Groupsfnancial analysis2014 - one Golden Index in thecategory "Expert support andassistance in organizaton ofstudent projects"The rubber-bitumen received theHungarian Natonal Ecolabel / Hungarian Ecolabelling Organisaton / Hungarian Ecolabelling OrganisatonCarbon saving special award ofAblakon bedobot pnz / KVETAssociaton1stPLACEVIA BONA- ,,Great employerSlovnaf was awardedby Forbes magazine as oneof TOP Slovak brands2nd place Good Practce Awards / EU-OSHAwith cooperaton of Slovak Natonal Labour Inspectorate2ndPLACE05About usLETTER FROMTHE CHAIRMAN CEO AND GROUP CEOWeareproudtosaythatMOLGroup delivered a strong set of fnancial and operatonal results in 2014 despite a toughexternalenvironment,with geopolitcaleventsunfoldingand oilpricesdroppingdramatcally.Our2014fnancialand operatonalresultsaretestmonytothestrengthand resilienceofMOLGroupsintegratedbusinessmodel, which has clearly demonstrated its value.Looking back we have managed to deliver strong results despite the drastc fall in oil prices we experienced during thesecondhalfoftheyear.wevirtuallymaintained ourCleanEBITDAlevel(amereonepercentdecline), preserved our strong cash generatng positon, grew our capitalexpenditureandkeptourgearingandindebted-ness ratos at historical lows, while being fully commited to maintaining our dividend distributon.MILESTONES ACHIEVED IN UPSTREAMwe are proud to acknowledge that the Upstream division has achievedgreat milestones during thelast year. wedeliv-ered a strong EBITDAdespite the drastc fall in oil prices and managed to turn a corner, startng to increase producton afer recent years of decline and exceeding our original 2014 producton target. At the same tme we surpassed the 100%organic reserve replacement rato, whilst the disposal and acquisiton of diferent assets allowed us to optmize our internatonal E&P portolio further and establish our positon in a hub of technology know-how, the North Sea. Finally, our new senior internatonal Upstream manage-ment was established during the year and major organ-izatonal changes were implemented, further laying the foundatons for future growth of the division.EXCEPTIONAL PERFORMANCE IN DOWNSTREAMOurDownstreamdivisionhasdeliveredtrulyexcep-tonalperformancein2014,exceedingallourprevious expectatonsespeciallyinthesecondhalfoftheyear. EBITDAincreasedconsiderably,withallourdivisions refning,retailandpetrochemicalssignifcantly improvingtheircontributon.TheNewDownstream Programacomprehensiveefciencyprogramwhich waslaunchedin2011wassuccessfullycompleted in2014,fullydeliveringonourpromises.Clearlyan improvedmacroenvironmenthasbeenbenefcial,but theoutstandingresultsthattheDownstreamdivision has delivered during 2014 is fundamentally the result of thecontnuousefortstoimprovefromwithin,proving that through contnual transformaton and innovaton we have become an even stronger Downstream player.CHALLENGING CONTEXT IN 2015Although the combinaton of a low oil price environment andaturbulentgeopolitcalsceneposecertainchal-lengesfortheindustry,wearelookingintothefuture with great confdence. MOL Group is undergoing consid-erable changes and, as we embark on many excitng new projects, we contnue to have a very strong fnancial posi-tonandtostriketherightbalancebetweenUpstream andDownstream.Thisbodeswellforthelong-term success of the Group. SIGNIFICANT GROWTHInUpstream,wearedeterminedtocontnueincreasing productoninthecomingyearswithourexistngport-folio,targetngsubstantalgrowthinourinternatonal operatons,whilebeingfullydeterminedtomaintain disciplined cost control across all of our operatons. And althoughalowoilpriceenvironmentisachallenge,we believe that we can beneft from it as the strength of our balance sheet will allow us to seek new inorganic oppor-tunites.Finally,giventhepositveimpactofourglobal managementteam,wearedeterminedtoatractaddi-tonalhighly-qualifedinternatonalprofessionalswho cancontributetodevelopinglong-termperformance within the division.ADDITIONAL EFFICIENCY IMPROVEMENTSAs for Downstream, we are all very proud of the results achieved, but we will under no circumstances put all our faith in an improving macro environment and ride on the backofacyclicalrecovery.wewillcontnuetoimple-ment structural changes to put Downstream on an even strongerfootng,cementngourpositonasoneofthe mostsuccessfulintegratedbusinessesinEurope.The launchofourNextDownstreamProgramdemonstrates ourresolveforfurtherprogressaswetargetadditonal efciencyimprovements,simultaneouslybeneftng fromseveralmajorgrowthprojectsandsowingthe seeds for future growth. The extension of the value chain inpetrochemicalswillstrengthenourpositonamong Europeanpetrochemicalproducers,whilethecontn-uous expansion of our retail network will consolidate our leading positon in the region. we are hopeful that these initatveswilltranslateintosustainablegrowthinprof-itability, very strong cash fow generaton and improved returns during the coming years. STRONG FINANCIAL POSITIONBehindallofMOLGroupspastachievementsand futureaspiratonsliesastrongfnancialfoundaton, whichwillcontnuetobeourhighestpriority.Thisis thereasonwhy,asaboard,wedevoteagreatdealof tmetoassessing,debatngandchallenginginvestment proposalsfrommanagement,whilstcloselymonitoring progressandperformance.weareasdeterminedas evertokeepourrobustfnancialpositon,leavingour increasinglyintegratedbusinessmodelwell-positoned to take advantage of changes in the market and deliver theresultsandvaluecreatonthatourshareholders rightully expect from us. MOLGroupslong-termsuccesscanonlybeachieved throughtheintegratonofenvironmentalandsocial maters into our daily operatons. This year, we reported the lowest injury rate ever achieved, whilst our energy efciencyprogramsresultedinasavingofmorethan 300,000tonsofCO2annuallycomparedto2011base-line. And whilst we are very encouraged by these posi-tveresults,ourefortsaddressingenvironmentaland socialtopicswillremainofutmostimportanceinthe futureasweaimforaplaceinthetop20%ofoiland gascompaniesasmeasuredbysustainabilityperfor-mance.Consideringthefundamentalimportanceof transparencytothemarket,ournon-fnancialperfor-mance will contnue to be reported in line with leading externalinitatvessuchastheprinciplesoftheUN Global Compact and overseen by dedicated board-level and executve bodies.MAKING A POSITIVE DIFFERENCEwefeelveryprivilegedtoleadthisexceptonalorgani-zaton.Almost30,000talentedanddedicatedindivid-ualsledbyafantastcandtransformedmanagement teamhavedeliveredgreatresultsthroughouttheyear, achieving the Groups objectves and providing value for both shareholders and stakeholders alike. As we embark onanewyear,welookforwardwithgreatconfdence, fully convinced that we are on the right path.we truly believe that MOL Group makes a positve difer-encewhereveritoperates,andwearedeterminedto partcipateinandaddvaluetothelocalcommunites, regions and host countries in which we live and work. wewouldliketothankallouremployeesfortheir dedicationandhardworkaswellasourpartners, customersandsuppliersfortheirexcellentcoopera-tion throughout the year.Letter from the Chairman CEO and Group CEOZsolt HERNDI Chairman and CEO, MOL GroupJzsef MOLNRGroup Chief Executive Officer, MOL Group07 07big ambitions and potentialfor growthKovcs Tams MTI09Upstreamdedicated to further increase efciencyDownstream11natural gas transmission activity provides stable returns13Midstreamfocus on top talentsthe employerof choice forthe brightest andthe best15HRcommitted to doing business responsibly and sustainably17SustainabilityInterviewNORBERT MICHELISZ FUELED BY AMBITION TO BE THE BESTTHISyEARyOUARESTARTINGyOUR4THwTCC SEASONwITHMOLGROUPSSUPPORT.HOwDO yOUFEELABOUTTHEPARTNERSHIPANDHOw DOES IT BENEFIT yOU?It's been a long traditon that MOL Group is supportng outstanding talents both in the energy industry and in sport and I can really relate to that. In my opinion, in both felds, - to be successful-, you have to perform at maximum level. This striving for excellence is the basis of my enthusiasm for motorsport, and this may have been the motvaton for MOL as well, to support tech-nicalsports.Especially,thatthecompanyhasclose testomotorsport,asPantaDistribuzioneS.p.A.,a MOLGroupmembercompanyistheofcialfuel supplierforwTCC.Myfeldrequireshugestamina, dedicaton and efort, qualites that are of the highest esteem both in business and sport.yOURPASSIONFORSPEEDANDPERFORMANCE ISKEyINyOURCARRIER.wHEREDOESITCOME FROMANDHOwDOESITINSPIREyOUFOR FURTHER SUCCESS?Ifollowedanunusualtracktoentermotorsports. Beforestartngmyrealracingcareer,Ihadbeen trainingmyselfthroughcomputersimulatongames. Myunclewaspassionateaboutrallying,hebuiltmy frstracingcarIwasnteven7atthetme!Thats howIgotpoisedbymotorsportandsincethen,it hasbeenimpossibletogetmeoutfrombehindthe wheel.Ialwayshadtheambitontocompeteonan inter natonal feld and I am delighted that MOL Group sharesthisambiton,oneofthemostimportant elements of this ideal partnership. HOwDOESMOLGROUPSSUPPORTENABLEyOU TO ASPIRE FOR MORE?Iconstantlychallengemyselfandmycompeti-tors through courage, discipline and ambition and thesevaluesarecloselyinlinewithMOLGroups corporate philosophy. Achieving my lifes dream in partnership with a company that shares the same valuesofexcellencethatIdo,isalwaysuplifting. with MOL Groups generous support, I was able to achieve the most significant victory in the history of Hungarian motor racing. wHAT ARE yOUR THOUGHTS ABOUT THE SEASON AHEAD OF US?That is a very valid queston, because last year was a special year for me andI contnue tostrive for my life-long ambiton to be the best in 2015 too. This tme, I really want to excel and I knowexactly what I want to achieve!FACTSNORBERT MICHELISZBORN: 08/08/1984NATIONALITY: HungarianCURRENT COMPETITION: World Touring CarChampionship (WTCC)WINS: 3POLES: 2BEST FINAL PLACE:4th (2014)CARRIERS HIGHLIGHTS:Hungarian Suzuki Swift Cup champion (2006)Hungarian Renault Clio Cup champion (2007)Hungarian SEAT Len Cup champion (2009)SEAT Len Eurocup champion (2009)WTCCRookie Challengechampion (2010)WTCCYokohamaDrivers Trophychampion (2012)WTCC(2014)Hungarian State Crossof Merit (2014)I KNOW EXACTLYWHATI WANT TOACHIEVE!19OUR BUSINESSES AND OVERVIEWOF THE ENVIRONMENT21Our businesses and overview of the environmentOVERVIEW OF THE MACROECONOMIC AND INDUSTRY ENVIRONMENTWORLD ECONOMYGlobal growth is stll under its pre-crisis level and itisexpectedtoremainthere.withtheexcep-ton of India, all of the large emerging economies experienced declining growth in 2014. In China, underlying real indicators are showing aworsepicturethanheadlineGDP.Thecoun-trysoveralldebtlevelislarge,especiallyfor anemergingeconomy.Creditandinvestment basedgrowthiscomingtoanend,andslower growth is likely in the coming decade.OECDcountriesperformedbeterin2014,all the major economies managed to increase their GDPgrowth(withtheexceptonofJapan).The US economy performs best among majors due to cheap energy, healthier fnancial insttutons and generally beter fundamentals.TheEurozoneisalsooutofitsrecession; however,growthisstllweakandthenew quanttatveeasingprogrammealonedoesnot seemtobeenoughtoacceleratetheregion. Meanwhilethereturntogrowthandeasingof fnanceshasdecreasedtheappetteforstruc-tural reforms. In additon to the stll unresolved creditcrisisonitsperiphery(mostimportantly in Greece), the European Union has to deal with a new situaton by its eastern borders. Sanctons against Russia and increased uncertainty in the regionhavesofarhadlimitedefectsonEuro-peaneconomies;however,along-lastngopen confictdecreasesgrowthexpectatons.The Eurozonesoutlookisthereforestllcloudedby uncertainty,weakgrowthandpersistngpolit-ical tensions.eries while the refnery overhang is stll massive, especially in the OECD. European Downstream is inanespeciallydifcultpositon.Ithasneither thefast-growinglocalmarketsofAsianorthe cheap hydrocarbons the United States enjoys. In2014,refnerymarginsrecoveredsome-what from depressed 2013 levels, refnery shut-downscontnuedthroughouttheyeardespite thefactthataround10%ofEuropeancapacity hadalreadyshutdownbetween2008-2012. AccordingtotheIEA,roughlyafurtherquarter ofEuropeanrefningcapacitymaybeatriskof closure by 2035.CENTRAL AND EASTERN EUROPEMost Central and Eastern European (CEE) coun-tries experienced moderate GDP growth in 2014. However, there are distnct regional diferences between dynamic markets (such as Poland) and relatvely weak economies (such as Croata). The recessionwas over inthe Eurozone as a whole, and that had a positve efect on the region as well.Duetorelatvelygoodeconomicgrowth, regional motor fuel demand grew in 2014. More-over, this may contnue in 2015 as low prices can boost demand.HUNGARYHungarys GDP grew by 3.6% in 2014. Neverthe-less, GDP is stll lower than its 2008 peak and last years relatvely high growth was based on one-ofs, such as a record draw of EU-funds. Medium termgrowthpotentaliscertainlylower:public debtandspendingremainhigh,banklending isstlllacklustre.Dieseldemandgrewby9% andgasolinedemandby3.4%in2014,possibly thanks to the constructon sector and infrastruc-tural developments and to lower oil prices in the second half of the year.CROATIACroataseconomyremainedweakin2014,the sixthconsecutveyearwithoutgrowth.Given weakdomestcdemandincludinglacklustre investment actvity, a short-term rebound seems unlikely.Unemploymentremainspersistently highataround17%,whereasfallinginfaton signals weak domestc demand with no recovery in sight for household credit. The country accord-ingly experienced a 5% gasoline demand drop in 2014,whiledieselconsumptonstagnated.On amoreoptmistcnote,industrialproductonis beneftng from EU entry as is to a lesser extent export growth which could boost GDP growth.SLOVAKIASlovakia managed to consolidate its government budgetsincethecrisisanddonemajorreforms andausteritymeasures.Duetothesemeas-ures,Slovakiaexperienced2.3%GDPgrowthin 2014 (IMF). On the fipside, unemployment is stll relatvely high at around 14%. Gasoline demand grewby2.5%in2014,whereasdieseldemand grew by a sizable 5.7%, mainly due to favorable economic environment and the oil price decline.GLOBAL ENERGY MARKETS & UPSTREAMThemostimportanteventof2014wasdef-nitelytheoilpricedeclinethatstartedinJune andcontnuedevenin2015.Themostimpor-tantcausesofthedeclinewereweakglobal oildemand,momentarilylesssupplydisrup-tonsandmostimportantlytheUSshaleoil boom.Asbothdemandandsupplyarerigidin theshortrun,largepriceswingsareneededto balanceasuddenchangeinconditons.Shale oilproductonismoreresponsivethanconven-tonal producton, hence by the end of the year US unconventonal producton growth and espe-cially investments started slowing. ThepriceofBrentcrudeaveragedUSD99per barrelin2014.Asmentonedearlier,demand increase was smaller than antcipated: according totheInternatonalEnergyAgency,globaloil demandincreasedby0.7MMbpd,reaching 92.5MMbpd.Allofthedemandincreasecame from emerging markets, whereas OECD demand slightly declined in 2014.Non-OPEC producton grew by 2 MMbpd, from which US growth was 1.6 MMbpd. The US produc-ton growth alone was more than double the global demand growth in 2014. In additon, OPEC countries decided not to cut their producton.DOWNSTREAMTheDownstreamsegmentisundergoinga profound transformaton. More and more unpro-cessedliquidhydrocarbonsarebypassingrefn-Regional GDP growth, 2011-2014543210-1-2-301.63.22.01.10.9(0.5)3.62.3(1.0)(1.7)(2.0)2011201220132014Croata HungarySlovakiaOverview of the macroeconomic and industry environment23UPSTREAMMOLGroupUpstreamhasover75years ofmainlyonshoreproductonexperience, andisactvelyworkingtoexpanditsport-foliowithadditonalofshoreactvites.Our portolioconsistsofoilandgasexploraton andproductonassetsin13countrieswith producton actvity in 8 countries.MOL Group remains commited to ensuring safeoperatonsthatprotectpeopleand theenvironment,andareinaccordance withtheprinciplesofsustainabledevel-opment.weaimtokeeptheorganic reservereplacementratoabove100%on athreeyearaverage,whiletargetngfat todecliningunitcostacrossallcountries where we operate. we intend to achieve a productongrowthrateofatleast10-15% per annum. In 2014, we managed to reverse thedecliningtrendinourproductonand arenowfrmlyonagrowthpath.In2015, weaimtorampuptotalorganicproduc-tonto105-110mboepd,10%abovethe 2014level.Growthwillbefuelledbynew producton additons from: (1)THENORTHSEAREGION.TheCladhan development is now almost on track for frst oilinH22015,thusaddingtothebarrels producedbyrecentlyacquiredproducing felds. (2) THE KURDISTANREGIONOFIRAq. Following the approval of the Field Devel-opment Plan in 2014, commercial produc-ton started from the Akri-Bijeel block. In the Shaikan block, a second producton facility was completed in 2014, enabling total block producton capacity to reach 40 mboepd. we expect a gradual increase in producton from both the Akri-Bijeel and Shaikan blocks, following debotlenecking actvites onsurface facilites and the te-in of newwells. WE HAVE MADE SIGNIFICANT STEPS TOWARDS OPTIMISING AND BROADENING THE MOL GROUP UPSTREAM PORTFOLIO, WITH THE OBJECTIVES OF IMPROVING TOTAL PRODUCTION, EXTENDING KNOW-HOW AND BALANCING OVERALL UPSTREAM RISK PROFILE.Alexander Dodds Executive Vice President, Group Exploration and Production2014HIGHLIGHTSPERFORMANCE

Production on the rise since mid-2014, 98 mboepd average productiondelivered in 2014, exceeding original targets

2P reserves of 555 MMboeat 2014 year-end

Organic reservesreplacement ratioof 103% with a reserveslife index of 15 years

Exploration spending increased by 60%compared to 2013

Unit OPEX kept ata competitive levelof USD 8.4/boe

Successfully finalising the major organisational restructuringof MOL Group UpstreamPORTFOLIO

Mitigating productiondecline and maximising cash flow generation in the matured CEE region

Diversified portfolioensures presence in the worlds key oil and gas regions, such as the North Sea, the Kurdistan Regionof Iraq, CIS countriesand Pakistan

Successfully closed two deals in the UK North Sea region

Started commercial production in theAkri-Bijeel block in the Kurdistan Region of Iraq

Balancing risk and seeking new exploration and development opportunities arising from the current oil price environmentW hat have been the most important tasks for MOL Group Upstream in 2014?MOLGrouphassetoutonanambitous journeytorenewitsGroupExploraton& Producton business, focusing on the improve-ment of three key pillars: our people, processes andportolio.Oneofourmainachievements in the last year and a half has been the restruc-turingoftheE&Porganisaton:wesuccess-fully completed our senior management team, addingexperiencedinternatonalmanagers, and also recruited crucial senior level experts. wemovedfromanasset-basedtoaregion-basedorganisatonalstructure,whichallows ustobemoreefcientintermsofhowwe makeuseofourpeopleandhowwemanage our processes. we have made signifcant steps towardsoptmisingandbroadeningtheMOL GroupUpstreamportolio,withtheobjec-tves of improving total producton, extending know-how and balancing overall upstream risk profle.Alexander Dodds Executve Vice President, Group Exploraton and ProductonUpstream25(3) THECEEREGION. The CEE region, including Hungary and Croata, will remain the backbone of MOL Groups producton in the upcoming fve to ten years. we aim to mitgate the producton decline and maximise cash fow, focusing on ef-ciency improvement measures and reducing unit producton costs. In Hungary, our objectve is to keep producton decline below 5%. Meanwhile in Croata, major development projects will enable us to increase producton. The achievement of planned growth targets will be underpinned by further improvement in our capabilitesandafocusonportoliooptmisa-ton, through both organic and inorganic means. ThroughINA,wehaveatrackrecordofmore than16yearsofshallowofshoreexperience, and we also intend to develop further our know-howinotherregions.Thefruitulrelatonships we have built in the industry, with local commu-nites,andwiththegovernmentsofcountries whereweoperateenableustooperatesafely andmoreefciently,whichisespeciallyimpor-tant in politcally unstable environments.wehaveanestablishedpresenceandthrivingpart-nerships in the MEA region, Pakistan, and the CIS. followin2015.IntheMargalaNorthblock, thefrstexploratonwelltoexplorebelow theMainBoundaryThrustintheMargala Hillswasspudded.(3)InKazakhstan,MOL increased its 2P reserves to 60 MMboe afer thesuccessfulcompletonoftheappraisal programmeinFedorovskyblock.More-over,discoverywasmadeintheBashkirian reservoiroftheRozhkovskyfeldandnego-tatonswithKazakhStateAuthoritesare underway to extend our exploraton license. (4) In Hungary, MOL was awarded three new exploratonlicencesintwobidrounds.(5) InCroata,twoblocksweregrantedtoINA intheFirstOfshoreBidRound,andINAis duetobidforlicencesintheFirstOnshore Bid Round.TheNorthSeaareawillremainafocusof MOLGroupbusinessdevelopment,with ambitonstoextendourpresenceinthis region.Moreover,wecontnuetoseeknew exploratonanddevelopmentopportunites inourcoreCEEcountries,aswellasinthe MEA region and CIS countries. MOL Group is wellpositonedtoutliseopportunitesthat arisefromthecurrentloweroilpriceenvi-ronment,whichenablesustobalancerisk and seek new exploraton and development opportunites.Following the divestments of Russian assets in 2013/14, our actve portolio management approach contnues. As a key inorganic step, MOL Group entered the North Sea region, and in 2014 successfully closed two deals. This strategic development allows MOL Group not only to increase the overall producton level and enhance its ofshore experience, but also to decrease the average politcal risk profle of the Upstream portolio. The North Sea area refon serves a new hub of technology know-howfromwhich the whole Group will beneft. MOL Group remains commited to its explora-ton strategy as the basis of long-termsustain-able growth. weactvelyseekopportunitestoenhance ourinternatonalexploratonport-foliothroughbothorganicandinorganic steps.(1)Inthe28thUKBidRound,MOL Groupacquiredfourexploratonlicences. (2)InPakistan,exploratonactviteswill contnueintheTALandKarakblocks.The frstexploratonwelldrilledintheGhauri block has already resulted in an oil discovery in2014,andearlyproductonactviteswill THROUGH ITS NORTH SEA EXPANSION, MOL GROUPS PRESENCE HAS BEEN FIRMLY ESTABLISHED ON THE GLOBAL MAP OF OFFSHORE E&P IN A STABLE, LOWER RISK AREA. MOREOVER, FOLLOWING THE CLOSING OF THE SECOND M&A TRANSACTION, WE WILL BENEFIT FROM PRONOUNCED OPERATIONAL SYNERGIES ON THE NORTH-SEA PORTFOLIO.Alexander Dodds Executive Vice President,Group Exploration and ProductionUpstream27THE MIDDLE EAST, ASIA AND AFRICAMOLGrouphasstrengtheneditspresencein theseregionsbyexpandingitsportolioand carrying out accelerated work programmes. In the Kurdistan Region of Iraq, the Field Devel-opmentPlanfortheoperatedAkri-Bijeel blockwasofciallyapproved,andcommer-cial producton on the block has started. MOL Grouphasaclose,long-termco-operatonin Kurdistan with the Regional Government and wearecommitedtomaintainingourpres-ence in the Kurdistan Region of Iraq. AkeymilestonewasreachedforMOLGroup with the ofcial approval of the Akri-Bijeel block FieldDevelopmentPlan(FDP)bytheMinistry ofNaturalResources.Thiswasfollowedby thestartofcommercialproductonfromthe Bijeel-1ProductonFacility.Moreover,exten-siveparalleldrillingandwelltestngactvi-tes resulted in an improved understanding of the complexites of the reservoirs in the Bijeel feld. In the Bakrman area, a 3D seismic survey ofthediscoverywascompletedandthefrst appraisalwell,Bakrman2,reacheditstarget Triassicdepth,showingabeter-than-antc-ipatedstructure.IntheShaikanblock,the second producton facility (PF-2) became oper-atonal.Theblockhasbeenproducingfrom sevenwellsthroughtwoproductonfacilites, with total producton capacity of 40 mboepd. InthePakistaniTALblock,sixdiscoveries havebeenmadesince1999.Processingfacil-ites in the TAL block, including the Makori Gas ProcessingFacility(commissionedin2014) achievedgrossblockproductonofapproxi-mately77mboepd.TheMamikhelandMara-mzaifeldswere declaredcommercialin2014 anddevelopmentplansweresubmitedto the Government of Pakistan. Drilling actvites increasedfromtworigoperatonstofourin the operated blocks, with three rigs deployed intheTALblock.Fourwellswerespudded and their completon is expected in 2015, two wereexploratoryandtwoweredevelopment wells.Threenewwellscameintoproduc-ton.IntheKarakblock,extendedwelltest productonfromtheHalini-1exploratonwell contnued.Thelocatonsoftwoexploraton wells to be drilled in 2015 were identfed. The frst exploraton well was drilled in the Ghauri blockin2014,resultnginanoildiscovery. IntheMargalaNorthblocks,drillingofthe frstexploratonwellcommenced.Thisisthe frstwellbeingdrilledinthenorthernpartof thePotwarBasin(NorthofMBT),andisthus expectedtohaveasignifcantimpactonthe future exploraton approach in the area.MOL Group will contnue to expand its positon in exploraton in Pakistan.In Oman, MOL Group contnued pre-drilling exploraton actvites with the completon of G&Gstudies, performing a 2D/3Dseismic acqui-siton campaign, seismic processing and partal interpretaton of seismic data. we also started preparatons for drilling of the frst exploraton well, expected to be spudded in Q4 2015. THE CIS REGION Anintensivefelddevelopmentprogramme is underway in the Russian Baitugan block. In Kazakhstan,wemovetowardsdevelopment phase in the Fedorovsky block following addi-tonal reserve bookings in 2014. InRussia,MOLGroupdivested49%of sharesinBaiTexLLCtotheTurkishPetro-leumCorporaton(TPAO)inApril2014.In ordertooptmiseoperatonsandestab-lishstrategicpartnerships,MOLGroup remainedtheoperator,withamajority stake. In the Baitugan Block, the 2014 devel-opmentdrillingprogrammewascarriedout with4-6rigs.Constructonofinfeldinfra-structure was fnished and 52 producing and injectonwellsweredrilledtocontnuelast yearsproductongrowth.Intheyerilkinsky block,completonof3Dseismicinterpreta-tonin2014confrmedtheblocksexplora-tonpotental, andthe frstexploratonwell is planned for Q3 2015. In the Matjushkinsky block,thefocusremainedonexploraton, KEY ACHIEVEMENTS IN 2015 WE INTEND TO INCREASE PRODUCTION FURTHER AND COMPLETE THE INFORMATION ACQUISITION CAMPAIGN, WHICH SHOULD SERVE AS VALUABLE INFORMATION FOR FURTHER DELINEATION OF THE RESERVOIR IN THE AKRI-BIJEEL BLOCK IN THE KURDISTAN REGION OF IRAQ.Carl Grenz Chief Operating Officer, Exploration and Productionincludingtheinterpretatonoftherecent 2Dseismicsurvey,expectedtoclarifythe remaining potental of the block.IntheFedorovskyblockinKazakhstan,a success fulappraisalprogramwascomplet-ed in May 2014. Based on the testng results oftheU-24appraisalwell,anewdiscov-erywasmadeintheBashkirianreservoir of the Rozhkovsky feld. Afer an independ-entreserveaudit,MOLGroupbookedan additonal24MMboereservesandnow holds60MMboeofreservesintheblock. Kazakh state authorites have approved the declaraton of commerciality. In 2015, MOL Groupwillproceedwithpreparatonsto beginthefrstphaseofthedevelopment project. Upstream29THE CENTRAL EASTERN EUROPEAN REGION TheCEEregion,whereMOLGrouphas morethan75yearsofE&Pexperience, hassuccessfullypreserveditscorerolein theGroupsUpstreamportolio.Strategic focusisplacedonmaximisingrecovery from matured felds, mitgatng producton decline, maximising cash fow and building on extensive know-how, whilst taking steps tooptmisetheportolioandimprovecost efciency.THE NORTH SEA WILL REMAIN A FOCUS AREA FOR MOL GROUPS BUSINESS DEVELOPMENT. MOL GROUP IS WELL POSITIONED TO UTILISE OPPORTUNITIES THAT ARISE FROM THE CURRENT LOW OIL PRICE ENVIRONMENT, WHICH ENABLES US TO BALANCE RISK AND SEEK NEW EXPLORATION AND DEVELOPMENT OPPORTUNITIES.Brian Glover Senior Vice President, Exploration & Business DevelopmentIN THE CEE REGION, MOL GROUP SUCCESSFULLY USES ITS TECHNICAL EXPERIENCE AND KNOW-HOW TO COUNTERBALANCE DECLINING MATURE PRODUCTION.Mike Pausche Senior Vice President, Field Operationsto expand its acreage, MOL Group contracted for the Szeged Basin west concession and the Jszberny geothermal block in the First Bid Round. Furthermore, in the Second Bid Round announced in June 2014, MOL Group was awarded the Okny Eastern concession block.INAs main goal is to stop the natural decline inCroataandevenincreaseproducton in2015.INAsefortshavealreadyyielded positveresultsascrudeoilproducton inCroatahasincreasedforthefrsttme inmorethanadecade,largelyduetothe successfulwelloptmisatonprogramme. Acceleratedonshoreexploratonanddevel-opmentactvitesconductedoverthepast yearsinCroatahavealreadyresultedina moderated,5%productondeclineratein 2014.Animportantmilestonewasreached in the Ivani-utca EOR project as the permit fortrialworkonCO2injectonintheIvani FieldwasobtainedfromtheMinistry.2015 will bring completon of the frst phase of the EOR project with a positve efect on produc-tonintheIvanifeld,andthestartofCO2 injectonintheutcafeld.Ofshoredevel-opment drilling actvites contnued in 2014. Five development wells were drilled, yielding 1.6mboepdinincrementalgasproduc-tonforINA.Gasproductonstartedatthe IzabelafeldinJuly2014,andattheIkaJZ feld in November 2014. To further enhance the exploraton portolio, INA bid for licences oferedintheFirstOfshoreBidRoundand wassubsequentlyawardedtwoexploraton blocks, South Adriatc 25 and South Adriatc 26.INAwillproceedwithnegotatonsand thesigningofthePSAAgreement.INAhas also expressed its interest in licences ofered in the First Onshore Bid Round, the award of which will follow in Q1 2015.THE NORTH SEAIn2014,MOLGroupcloseddealswith WintershallandPremierOil,andwas awarded of four exploraton licences in the 28th UK Bid Round. MOL Group entered the UK North Sea basin aferacquiringaportolioofnon-oper-atedofshoreassetswith14licencesfrom GermanBASFGroupmemberwintershall. Atthattme,theCladhandevelopmentwas already underway, and the Catcher develop-ment was being progressed to feld approval status.TheCladhandevelopmentisnow almost complete and should be on track for frstoilinH22015.Catcherhasbeenfully approvedandismovingforwardwithfrst wellsplannedfordrillinginQ22015and theFPSOconstructoninJapanunderway. December2014sawcompletonofthe acquisiton of shares in the Scot, Telford and RochellefeldsfromPremier.In2014,MOL Groupwasawardedfourfrmblocksinthe 28th UK Bid Round.ThestrategicstepstakenintheNorthSea region allow MOL Group not only to increase its reserves and overall producton, but also to simultaneously decrease the politcal risk profleofMOLGroupsUpstreamportolio. EntryintotheNorthSeaareaalsoenables MOLGrouptoenhanceshallowofshore experienceandcreateanewhub.wesee room for cost efciency improvements in the supplychainandhaveestablishedaproac-tve and collaboratve relatonship with oper-ators to help reduce costs in the low oil price environment.Through contnuous implementaton of new projects, MOL Group seeks to achieve its stra-tegic goal in Hungary to limit the producton decline rate to 5%. As part of the conventonal exploraton program, gas and gas conden-sate discoveries were made. Theunconven-tonal exploraton project contnued in the Derecske Basin. In additon, 11 feld devel-opment projects were completed and fve new development wells were drilled. To ease the pressure of declining producton on unit producton costs, an extensive cost optmi-saton programme has commenced. In order Upstream31CLIMATE CHANGE ENVIRONMENTHEALTH AND SAFETYCOMMUNITIESHUMAN CAPITALECONOMIC SUSTAINABILITYENVIRONMENT2010 2011 2012 2013 2014Hazardous waste (t) 22,58725,24021,2819,3749,135 Hazardous waste/producton (kg/toe) 5.15.54.92.22.3 Non-hazardous waste (t) 37,09227,76143,07968,64073,560 Non-hazardous waste/producton (kg/toe) 8.36.19.916.318.5 waste reused or recycled (t) 33,50124,33928,45134,66933,976 Reuse or recycle rato (%)56 46 44 44 41 2010 2011 2012 2013 2014Fatalites own staf00100 Fatalites contractors 15* 023 * Five contractors and a third-party fatalites due to non-HSE event (fre fght in Pakistan)2010 2011 2012 2013 2014Community investments in E&P (HUF m) (Total MOL Group without INA Group)92 163 191 354 2342011 2012 2013 2014*Headcount 6,760 6,946 6,432 3,863Female (%) 14 13 14 17Turnover rate (%) 9.7 10.6 5.3 7.0Training cost per capita (HUF th) 78 72 84 111Training hours per capita (hours) 28 20 28 31*Crosco is excluded from E&P data from 20142010 2011 2012 2013 2014Reserve Life Index (years) (SPE 2P)* 11 13 15 15 16Organic Reserve Replacement Rate (%) (SPE 2P)* 15 217 19 18 103Research & Development expenditure (HUF mn) 597 715 730 486 286*Contains INA total reserves. Producton fgures contain Total MOL Group including INA, except y2009 which contains MOL Group and INA producton y2009 H2.SUSTAINABILITY HIGHLIGHTS

Enhanced Oil Recovery project in Croata, which will increase oil recovery and substantally reduce carbon-dioxide (CO2) emissions, has obtained its operatng licenses. Afer fnalising re-lining work-over operatons on both CO2 injecton wells and water disposal injec-ton units, pilot injecton into 12 wells in Ivanic Grad commenced. By the end of 2014, a total of 27,045,379 m3 of CO2 had been injected, resultng in a 50 thousand ton reducton in CO2 emissions.

Begun in 2013, comprehensive water studies were fnalised in 2014 for two operatonal blocks; one in Pakistan and another one in the Kurd-istan Region of Iraq, both considered to be located in a water-scarce area. Bearing in mind further operatonal development in both areas - especially the likelihood of water-intensive drilling operatons - further recommendatons were made in order to ensure a sustainable supply of water and to protect water bodies throughout both blocks.

E&P actvites ofen take place in or adjacent to natural, protected areas.In2014,MOLGroupconductedacomprehensivesurveyto beter identfy sites that are critcal from a biodiversity perspectve. The fndings show that MOL Groups general exposure is moderate, but some of the operatonal sites in Hungary and Croata are located onareaswithNatura2000protecton,andinCroatathreemajor sitesarelocatedinbiodiversity-critcal(protectednatureconser-vaton or water sensitve) areas. Accordingly, operatonal plans for 2015includethepreparatonofBiodiversityActonPlansforthe sitesconsideredtobebiodiversitycritcal.Forinternatonaloper-atons, an Acton Plan coveringall three of the critcal sites for the period 2014-2016 has already been developed in Pakistan, and the frst part of this plan has been fnalised.

InE&PoperatonsoutsideEurope,alargeamountofcrudeoil istransportedbyroad.Inorderthatownstafandcontractor employeestobeterunderstandandmanagetheriskstheyface withroadsafety,MOLPakistanconductedacomprehensiveroad riskassessmentforcondensate/crudetransportatonfromfeld operatonstotransferringfacilites.AnewHSEpre-screening andHSEpre-qualifcatoncriteriahavealsobeenintroducedfor contractorsregardingroadtransportaton.Thisshouldhelpiden-tfy contractors with the best safety performance.

In the Kurdistan Region of Iraq, Kalegran B.V. has completed iden-tfyingthemostmaterialsocialissues,stakeholderconcernsand related social impacts of its operatons. The outcome of the process isaso-calledStakeholderEngagementandSocialInvestment Strategy. Six key areas were identfed as being crucial to locals. The main areas of concern are addressed in initatves for water Devel-opment, Agriculture, Educaton, youth Empowerment and Tourism. Theassessmentandpre-planningprocessfortheproposedinit-atveswillbeimplementedinthenearfutureandisduetobe completed in 2015.

In 2014, MOL Group launched UPPP, a new internatonal E&P talent acquisitonprogram.Intotal,972teamsenteredtheprogram, most of them from Pakistan, the Kurdistan Region of Iraq, the UK, HungaryandCroata.ThreePakistaniteamsmadetheirwayinto the top ten and some of them won monetary prizes and an oppor-tunity to work as part of MOL Group.Specifc energy consumptonEnergy consumpton/producton Exploraton & Producton without INAEnergy consumpton/producton total Exploraton & ProductonEnergy consumpton/producton 2013 OGP average20151050200150100500pieces mn m3m3/toe m3765432102.01.51.00.5water withdrawal1.00.80.60.40.20250200150100500Mt CO2 equivalent kg/toeGHG emissions/producton total E&PGHG emissions 2013 OGP averageGHG emissions/producton E&P without INAGHG emissions E&P INAGHG emissions E&P without INAGHG emissionsNumber and volume of spills (>1m3)Lost Time Injury Frequency Rate2.01.51.00.50pieces/ mnworking hoursLost tme injury frequency Exploraton & Producton without INALost tme injury frequency total Exploraton & ProductonData refer to total MOL Group but only operatonally controlled companies, therefore Joint Ventures (INA ofshore, Syria, Egypt and Angola) are excluded; data covers 82% ofproducton. The excepton is Economic Sustainability data which covers total MOL Group.water withdrawal/producton - Exploraton & Producton without INAwater withdrawal / producton - total Exploraton&ProductonTotal water withdrawal Exploraton & Producton INATotal water withdrawal Exploraton & Producton without INAVolume of spills Exploraton and Producton without INAVolume of spills total Exploraton and ProductonNumber of spills - Exploraton and Producton INANumber of spills - Exploraton and Producton without INA201020112012201320143.02.52.01.51.0GJ/toe20102011201220132014201020112012201320142010201120122013201420102011201220132014Upstream33MOL GROUPEXPLORATIONPRODUCTION* MOL fnalised the sale of 49% stake in BaiTex LLC (holder of the hydrocarbon licenses for the Baituganskoye feld) in early 2014.SPE 2P reserves 555 MMboeProduction (2014) 97.5 mboepdPORTFOLIO ELEMENTSCEEREGION KURDISTANREGIONOFIRAQPAKISTANProduction: 76.8 mboepdReserves (2P): 318.4 MMboeProduction: 1.9 mboepdReserves (2P): 15.4 MMboe** Shaikan block reservesShaikanAkri-BijeelBaituganyerilkinskyMatjushkinskyProduction: 7.7 mboepdReserves (2P): 74.5 MMboeFedorovskyNorth KarpovskyReserves (2P): 60.4 MMboeEGYPTTalKarakMargala NorthMargalaGhauriProduction: 6.6 MboepdReserves (2P): 13.4 MMboeEast yidma &Sidi Rahman andRizk Development LeasesRas QattaraNorth Bahariyawest Abu GharadigProduction: 2 mboepdReserves (2P): 2.5 MMboeROROHUHHRHRRussiaKazakhstanPakistanOmanIraqSyriaEgyptAngolaCameroonUK9%Condensate45%Gas46%Oil8%Condensate56%Gas36%OilKhor Mor ChemchemalKAZAKHSTAN RUSSIA*HUUpstream35DOWNSTREAMCOMPETITIVE ADVANTAGEMOL Groups Downstream division is made up of diferent business actvites that are part of anintegratedvaluechain. This valuechainturns crudeoil intoarangeof refnedproducts, which are moved and marketed for domestc, indus-trial and transport use. The products include, among others, gasoline, diesel, heatng oil, aviaton fuel, lubricants, bitumen, sulphur and liquefed petroleum gas (LPG). In additon, it produces and sells petrochemicals worldwide and holds a leading positon in the petrochem-ical sector in the Central Eastern Europe region.OurSixproductonunitmodel,optmised by Supply Chain Management, benefts from thesynergistcoperatonsofourcomplex assetbase.Ourhighnetcashmargin-producing refneries in Hungary and Slovakia makethemostoftheirgeographicalloca-tons, as well as their well-balanced product andcustomerportolios.MOLGroupPetro-chemicals brings distnct advantages to MOL Groupsrefnerieswhilstdeliveringhigh quality products to our customers.For MOL Groups refneries that canbesupplied from the sea, feedstock optmisaton ensures that we select the most appropriate rawmate-rials froma wide slate of crude oil types. Based onactual crudeoil market trends and, as aresult of supply chain optmisaton, between 2012 and 2014 we achieved a contnuous increase in alternatve crude processing in our refneries, compared to the Urals. Crude and raw mate-rials supplies and low-cost product distributon are achieved through our extensive pipeline systemand increased storage depot coverage. Our diverse logistcs network, combined with well-positoned commercial actvites, remains a key advantage in capturing sales margin reve-nues and reaching end customers.IN 2014, NOT ONLY THE GROUP LEVEL DOWNSTREAM PERFORMANCE, BUT ALL MAJOR BUSINESSES WITHIN DOWNSTREAM HAVE INCREASED. I AM CONFIDENT THAT WE ARE ON THE RIGHT PATH, AND KNOW THAT OUR PEOPLE HAVE THE ABILITY TO REACH ALL THE 2017 TARGETS THAT HAVE BEEN SET.Ferenc Horvth Executive Vice President, Group DownstreamHIGHLIGHTS

MOL Group Downstream is a diverse business with a global portfolio of refining and petrochemical facilities, wholesale and retail operations, including logistics supported by an optimised, integrated supply chain

Six production units with total capacity of 20.9 mtpa refining and 2.1 mtpa petrochemicals per annum

Sales of 16.7 mtpa refined products and 1.1 mtpa petrochemicals to our wholesale customers worldwide

Retail presence with1,734 service stationsin 11 countries

All main Downstream segments improved their contribution in 2014, resulting in a clean CCS EBITDA improvement of 32% overall in 2014

MOL Group Petrochemicals clean EBITDA tripled compared with 2013

Highest organic CAPEX of the last five years in 2014

Strong Downstream results are clear evidence of the successful completion of the New Downstream Program: USD 500-550 m in efficiency improvements realised up to 2014Downstreamshowedoutstandingresults in2014,whatisyourtakeonthisimproved performance?Especiallythesecondpartoftheyearwas quitearobustforMOLGroupDownstream. I'mveryhappytostatethatallRefningand Marketng,RetailandPetrochemicalsbusi-nessesincreasedtheirperformancelastyear. wereachedUSD870millionofcleanEBITDA lastyear,whichisanimprovementofover 30%andwassupportedbytheUSD500m New Downstream Program efciency improve-ment. I'm very glad to report today that, based onlastyear'snumbers,wehavereachedthe target we announced, to ourselves, and also to our shareholders, in 2012.weareaimingtomaintainandbuildfurther our regional stronghold model, which consists ofthreemainpillars.Oneishowweare handlingandwhatwearedoingwithour assets, the second is our markets and the third one is our colleagues." Ferenc Horvth Executve Vice President, Group DownstreamDownstream37COMPLETION OF NEW DOWNSTREAM PROGRAM 20122014MOLGroupDownstreamsuccessfully completeditsNewDownstreamProgram, implementedduring2012-2014,bymaking signifcantefciencyimprovementsacross theentreareaofoperatons.Aparadigm shif was achieved by making radical changes acrossallelementsoftheintegrateddown-streamvaluechain;fromcrudeselecton throughRefningandPetrochemicalsto wholesaleandRetail.Throughmorethan 300initatves,thedivisionmanagedto improveitsefciency,ensuremorefexible operatons and maximise its revenues, whilst maintaining strict cost control.Inlinewithoriginalplans,USD150mn, almost30%ofthetotaltarget,wasdeliv-eredduring2012.In2013,thesecondyear oftheprogramme,USD400mnCCSEBITDA improvementswereachievedcompared to2011.In2014,thethirdandfnalyear oftheNewDownstreamProgram,USD 500-550mnEBITDAimprovementwas achievedcomparedto2011,withpropor-tonalcontributonsfromMOLGroup companies.Outstandingresultswereseen inenergymanagement,savingalmostUSD 100mnthroughvolumereducton,optmi-saton of energy sources and beter contract management;aswellasinproductonfexi-bility and yield improvement. This brought in an additonal USD 100mn by utlising alterna-tve feedstock and pushing producton units of all sites for beter yields. Atthesametime,weoptimisedour productandmarketportfolio,producing morevaluableproductsandplacingthem onthemostprofitablemarkets.wealso achievedasignificantimprovementin retail margin. Contnuing the successful model of the New DownstreamProgram,theDownstream divisionisnowreadytoaddressthechal-lengesofaneconomicenvironmentthatis stllunsetledbyimplementnganewasset andmarketefciencyprogrammewhich will support the achievement of MOL Group Downstreams strategic goals.MAPPING AND OPTIMISINGOUR STRONG PRODUCTION ASSET PORTFOLIO Alltheproducton-relatedHSEtargetsset for 2014 have been achieved. 2014 SD & HSE Acton Plan completon was 92% as some of the actons have been rescheduled for 2015. The overall Lost Time Injury Frequency (LTIF) ratedecreaseddramatcallyby68%,from 3.5 in 2010 to 1.12 in 2014.LEANoperatoncontnuedsuccessfullyin our Bratslava and Danube refneries and was successfully extended to our TVK site. Since 2013,wehaveidentfedslightlyoverEUR 17mn worth of benefts in the area of yields and energy. In2014,thehighestorganicCAPEXofthe last fve years went on key strategic projects andamajorturnaroundoftheBratslava Refnery.OurstreamlinedCAPEXnotonly sustainedtheoperatonsofourassets,but alsoensuredthatefciencyimprovement projects could be implemented.RegardingCAPEXin2014,thefocuswas mainlyongrowthprojects.Partofour petrochemicalsbusinessstrategywasto strengthencompettvenessthrougha broader and higher-quality product portolio, andtoincreaseourmarketshareincaptve markets. So the constructon of the new 220 kt/yearLDPEunitinBratslavacontnued onscheduleduring2014,withtotalinvest-ment of more than USD 340mn. The new unit willincreaseproductonfexibility,improve productqualityandensurehighernaphtha of-takefromtherefneryfromtheendof 2015onwards.Inlate2014,anoutstanding milestonewasreachedduringtheproject when1millionman-hourswithoutaLost TimeInjurywerecompleted.AtTVK(our petrochemicalscompanyinHungary),the constructon works of a 130 kt/year capacity butadieneextractonunitforatotalinvest-mentofUSD150mareontrack,andthe projectreachedseveralmajormilestones in2014asconstructonofthefrststorage tankwasfnishedinAugust,andinstalla-tonofpipelinesandotherequipmentwere completedasplannedinDecember.The unit,whichwillproducefeedstockmate-rialforsynthetcrubberforcartyres,and further improve the proftability of the petro-chemicals business, is expected to reach the commissioningphaseinQ22015andstart commercial operatons during Q3 2015.FROM A PRODUCTION POINT OF VIEW, OUR AIM IS TO OPERATE HIGHLY EFFICIENT, TOP-QUALITY REFINERIES, INCREASE AVAILABILITY BY OVER 1% AND IMPROVE WHITE PRODUCT YIELD BY 2.5%. IN PETROCHEMICALS, WE ARE GOING TO INCREASE, AND DEVELOP FURTHER ALONG THE FULL VALUE CHAIN.Miika Eerola Senior Vice President, Group DownstreamProductionKEY ACHIEVEMENTSDOWNSTREAM HAS SET NEW FINANCIAL TARGETS AND WHAT I CAN ANNOUNCE IS THAT, WITH THE SUPPORT OF OUR NEXT DOWNSTREAM PROGRAM, WE WILL ACHIEVE USD 1.3-1.4BN EBITDA BY END OF 2017, WHILST OUR NORMALISED FREE CASH FLOW SHOULD REACH AROUND USD 900MN.Ferenc Horvth Executive Vice President, Group DownstreamDownstream39contnued to be driven by a signifcant uplifin Hungary. Group motor fuel sales dropped bothincoremarketsandinthewiderCEE region(excludingItaly)mainlyduetothe plannedSlovnafmajorturnaroundinQ2 2014andthelimitedavailabilityof0.1 sulphur content imported gasoil. AspartoftheMOLGroupDownstream strategy,theSupply&Salesbusinessline hascountryconceptsforeachmarket we are already present in or plan to build a presence in, setng the pace for the coming threeyears.Thekeydriverbehindthese actonplansistomaximiseourgrowth potentalineachmarket,eitherinvolume orinmarginrevenue.TheMOLGroup salesandmarketngstrategyfocuseson increasingsalesintheCEEregion,where theCompanyenjoysmajoradvantagesdue to its central positon in landlocked markets, anditsexpertunderstandingofcustomer requirements.InlinewiththeconversionoftheMantua refneryintoalogistcshub,MOLGroupis fullycommitedtocontnuingitswholesale actvitesintheItalianmarketandworking hardonimprovingitsmarketpositon.In January2014,MOLGroupDownstream kicked of the transformaton of the Mantua refneryandswitchedoperatonstothird partysupply.InOctober,thefrstproduct vessel arrived at the port in Venice to supply this newly transformed Mantua operaton.InMay2014,MOLGroupannouncedthe acquisiton of ENIs Czech, Slovak and Roma-nianbusiness,includingsignifcantwhole-sale positons.InJune2014,weoversawthearrivalof thefrstproductcargoinConstantaport, ensuringourRomanianwholesaleactvites weresupportedbymorediversifedsupply lines.InaccordancewithMOLGroupsgrowth strategy,wearecontnuingtooptmiseour logistcsnetworkinRomania.TheTileagd depotstoragecapacitywasupgradedand cross-country deliveries from Hungary were started. In 2013, the frst constructon phase ofthe60kt/yearcapacityGiurgiuterminal was completed on the bank of the RiverDanube.In2014,MOLGroupfnalisedthe third phase of the upgrade.In 2014, Retail further increased its contribu-ton to Downstream results, generatng 35% higherEBITDAcomparedtotheprevious year, achieved mainly by fuel margin growth. Total retail sales volumes (including LPG and lubricantsvolumes)increasedby1%year-on-year due to the expanded service staton networkintheCzechRepublicandstrong demand recovery in Hungary and Slovakia.HungarianandSlovakianimprovedsales resultsarebalancingthenegatveimpact ofanexcisedutyincreaseinRomaniaand decrease in fuel demand in Croata.Premiumfuelshareincreaseinmostof ournetworkssignifcantlycontributedto double-digit fuel margin growth.OurregionalRetailmarketcoverageand customerbasehasbeenfurtherextended by acquisiton projects: (1) A purchase agree-ment has been signed with ENI for its down-streambusinessesintheCzechRepublic, SlovakiaandRomania,includingretail IN LINE WITH OUR NEW RETAIL STRATEGY, OUR FOCUS IS TO TURN OUR FILLING STATIONS INTO SELLING POINTS. WE WILL PRESENT RELEVANT AND DIFFERENTIATED FUEL AND NON-FUEL OFFERS AND SERVICES BY KNOWING OUR CUSTOMERS BETTER. WE WILL ALSO GROW OUR MARKET PRESENCE THROUGH ADDITIONAL ACQUISITIONS WITHIN CEE.Lars Hglund Senior Vice President, Group Retailnetworksand(2)theLukoilretailnetwork wasacquiredintheCzechRepublic.In 2015, as a result of integratng the acquired network,MOLCeskawillbecomethethird largest player on the Czech market.ANewRetailStrategicDirectonhasbeen setdownforthe2015-2017periodinline withourDownstreamStrategy.Retailaims to be the customers frst choice in fuel and convenience retailing and be a power brand inourcoremarkets.Theinitatvesoutlined inthestrategyhavebeenincludedinthe 2015-2017businessplan,andourplans forcapitalexpendituremeanfundamental changesinourofering,design,operaton andmarketngcommunicatons.Theretail organisatonhasalsobeenstrengthened byseveralkeyrecruitmentsduring2014, increasingourabilitytodeliveronournew strategic directon and priorites.The mechanical completon of the Friendship Ipipelinehasbeenreached,whichwillbe followedbycommissioningandsubsequent test runs in Q1 2015. The Bratslava refnery mayreceivethefrstcrudecargofromthe Adriatc Sea during 2015.In October 2013, as a consequence of the negatve economic environment that the refning business was facing in Italy, MOL Group announced its decision to convert its Mantua refnery into a product logistcs hub in order to maintain efcient and proftable operatons in Italy. Progressive transformaton of the Mantua refnery was completed in Q3 2014 and operatons commenced in line with the newbusiness model in Q4 2014.UTILISING AND FURTHER EXPANDING OUR REGIONAL WHOLESALE, RETAIL AND LOGISTICS NETWORK In2014,weexperienced4%aggregate domestcmarket(Hungary,Slovakia, Croata)growth,whilethewiderCEEmotor fuelmarketremainedbroadlyinlinewith lastyearslevels.Theincreaseindemand FOR WHOLESALE, WE ARE GOING TO INCREASE OUR MARKET SHARE IN CAPTIVE MARKETS AND INCREASE SALES VOLUMES TO 150% OVER OWN-PRODUCED MOTOR FUELSbel Galcz Senior Vice President, Group Supply & SalesDownstream41ENVIRONMENT HEALTH AND SAFETYCLIMATE CHANGEENVIRONMENTENVIRONMENTHEALTH AND SAFETYHUMAN CAPITALECONOMIC SUSTAINABILITYREFINING 2010 2011 2012 2013 2014Hazardous waste (t) 42,142 43,163 45,036 42,215 50,075Hazardous waste/producton (t/kt) 1.9 2.0 2.2 2.1 2.9Non-hazardous waste (t) 25,862 27,184 19,547 92,639 56,649Non-hazardous waste/producton (t/kt) 1.2 1.2 1.0 4.5 3.2waste re-used/recycled (t) 41,846 45,730 42,222 114,403 85,346Re-use/recycle rato (%) 62 65 65 85 80REFINING 2010 2011 2012 2013 2014Fatalites - own staf 1 0 0 0 0Fatalites contractors 0 0 0 0 12010 2011 2012 2013 2014wholesale customer satsfacton MOL Plc. (%) 88 86 88 86 86wholesale customer satsfacton INA* (%) 84 84 83 82 80wholesale customer satsfacton Slovnaf (%)** 90 90 82 82 82* INA in 2013 restated.** New measurement not made in Slovnaf in 2014, values reported are from 2013.2010 2011 2012 2013 2014Total Downstream Research and Development expenditures (HUF mn) 1,626.2 1,467.7 1,380.0 1,604.5 1,306.0Research and Development expenditures on renewables (HUF mn) 572.5622.8515.4 656.7267.9DOwNSTREAM (incl. Petchem and Retail) 2010* 2011 2012 2013 2014Headcount 9.055 15.785 15.398 15.027 15.292Male (%) 75.8 79.2 79.7 79.6 79.9Female (%) 23.4 20.8 20.3 20.4 20.1Turnover rate (%) 7.3 6.0 8.8 7.0 6.5Petchem Refning Petchem Refning Petchem Refning Petchem+Refning Petchem+RefningTraining cost per capita (HUF th) 9 68 56 54 44 63 44 42 Training hours per capita (hours)4 25 36 22 40 26 21 27 *without INA in 2010.SUSTAINABILITY SUMMARY Energy efciency improvements are of key importance both to busi-ness success and to reducing the ecological footprint of operatons. with the New Downstream Programs energy efciency projects, signifcant achievements have been made in this feld. The most important 35 projects saved an estmated 230 thousand tons in CO2 emissions per year by the end of 2014 compared to the baseline year 2011. The fnancial savings generated by these projects alone amounts to more than HUF 10bn, while the improvement over 2013 fgures is also signifcant. Total CO2 footprint is, of course, afected by other factors, such as changes in producton and portolio. Airemissionshavebeenfurtherdecreasedacrossrefningoper-atonsasaresultofbothtechnologyimprovementsandopera-tonalchanges.Emissionsofnitrogen-oxides(NOx)acrossMOL Grouprefningoperatonsamountedto3.4thousandtonnesin 2014, while these emissions were as much as 5.3 thousand tons per yearbefore2013.Projectsresultnginthisdecreaseincludetech-nology improvements and also the enhancement of monitoring and control systems. TherewerenoLTIs(LostTimeInjuries)duringtheyearatmajor constructonsites(Low-densitypolyethyleneprojectinSlovnafand the Butadiene Extracton project in TVK). Sadly one contractor fatality did occur at the Duna Refnery during lifing operatons. AchievingandmaintainingapositveSafetyCultureisoneofthe maingoalsforMOLDownstreambusiness.Tothisend,several programs were introduced in 2014. One example is the Perfect Day Program in Refning and Petrochemicals businesses that tracks and monitors safety performance without using any defned targets, in thepositvespiritofcreatngabest-in-classcompettonbetween operatonalsites,andcelebratngmilestonesthatareachieved. Anotherexampleisthebehaviour-basedProgramZer0safety program in the Logistcs division, as part of which a safety culture assessment was undertaken at fve companies in 2014. TheTechnicalCapabilityDevelopment(Petroskills)program contnued in 2014. More than 950 employees were covered by the programintheRefning,PetrochemicalsandLogistcsdivisions. Thecompetency-baseddevelopmentprocessresultsintargeted training and development investments. The ultmate objectve is to enhance operatonal excellence and operatonal safety. The Bratslava Refnery of Slovnaf started a community engage-ment program called Responsible Neighbour. The program involves publishing a series of leafets about refnery operatons for neigh-bouring communites. These contain informaton related to refnery processes and their impact that may concern local residents who live around Slovnaf, such as faring, water polluton, odours, smoke and noise. The documents have also been sent to local authorites and NGOs and are available on the public website of the company.543210210190170150GJ/toetonnes/kilotonnesRefning CO2 emissionsPetrochemicals CO2 emissions Mt t CO2/t HVCCO2emissions PetrochemicalsSpecifc CO2 emissions Petrochemicals2.01.51.00.5050004500400035003000250013,50013,00012,50012,00011,50011,00010,5001.041.031.031.021.021.011.011.00Total CO2emission - Refning INACO2emission/producton total RefningCO2emission/producton Refning without INATotal CO2emission - Refning withouth INASpecifc Energy ConsumptonGj/kt (refning)Gj/kt (petrochemicals)Specifc energy consumpton Refning without INASpecifc energy consumpton total Refning Specifc energy consumpton Petrochemicals*According to Solomon defnitons6,0005,0004,0003,0002,0001,0000NOx emissionstonnesNOx emissions/producton Refning without INANOx emissions/producton total RefningNOx Refning INANOx Refning without INA0.300.250.200.150.100.050tonnes/kilotonnes0.80.60.40.202010201120122013201420102011201220132014 201020112012201320142010201120122013201420102011201220132014 20102011201220132014SO2 emissions 14,00012,00010,0008,0006,0004,0002,0000SO2emissions/producton Refning without INASO2emissions/producton total RefningSO2 Refning INASO2 Refning without INAtonnestonnes/kilotonnesTotal and relatve water withdrawals5,0004,0003,0002,0001,0000100806040200m3/kt mn m3water withdrawal/producton Refning without INAwater withdrawal/producton total RefningTotal water withdrawal Refning INATotal water withdrawal Refning without INA4.003.002.001.000.0020102011201220132014Lost Time Injury Frequency rateNo./m working hoursLost Time Injury Frequency Refning without INALost Time Injury Frequency total Refning 20102011201220132014 Number and volume of spills (>1m3)2520151050No. m3Volume of spills Refning without INAVolume of spills total RefningNumber of spills Refning INANumber of spills Refning without INA5004003002001000Downstream43DownstreamCAPACITY IN MT/Y NCI INDEXDuna Refnery 8.1 10.6Bratslava Refnery 6.1 11.5Rijeka Refnery 4.5 9.1Sisak refnery 2.26.1REFININGLOGISTICSCRUDE PIPELINESCAPACITY IN MT/YFriendship (Slovakian part, owned by Transpetrol) 22.0Friendship I (bidirectonal total 129 km)3.5Friendship II7.9Adria (Hungarian part) 10.0Algy2.0Porto Marghera Mantova 2.6Adria JANAF (12% owned by INA) 20.0Product depots (units)36Product Pipeline system:MOL 1,356 km 8.2SN 484 km 2.5NUMBER OF FILLING STATIONSHungary364Croata 434Italy129Slovakia214Romania159Bosnia and Herzegovina102Austria57Serbia42Czech Republic192Slovenia40Montenegro1Total1734RETAILPETROCHEMICALSPRODUCTIONCAPACITY IN KT/YTVK - Ethylene 660TVK - Polyolefn 765SPC- Ethylene 220SPC - Polyolefn 435Pipelines capacity in kt/yFeedstock and product pipelines 2,700Ethylene (Kazincbarcika) 160Ethylene (Kalush) 100Domestic and core marketsRefineryPetrochemical PlantOil pipelinePetchem pipelinesEthylene pipelineProduct depotPolandCzech RepublicSlovakiaRomaniaHungaryCroataSerbiaBosnia andHerzegovinaSloveniaItalyAustriaBRATISLAVA REFINERYDANUBE REFINERYSPCTVKSISAK REFINERYRIjEKA REFINERYOURFILLINGSTATIONS45PORTFOLIO ELEMENTS45NATURAL GAS TRANSMISSION FGSZ LTDFGSZLtdiscurrentlytheonly companyinHungarythatholds anaturalgastransmission system operators license. Aside from domestc natural gas trans-mission actvity, FGSZ also performs transit actvitesforSerbia,Bosnia-Herzegovina, aswellascrossborderdeliveriestowards Romania and Croata and the Ukraine.In Hungary, FGSZ Fldgzszllt Zrt. (FGSZ Natural Gas Transmission Private Company Limited by Shares, in short form FGSZ Ltd, and referred to as FGSZ) is currently the onlycompanyto hold a transmission system operator license. Its actvity is carried out under market conditons regulated by law. Aside from domestc natural gas transmis-sion, FGSZ also performs transit actvites for Serbia, Bosnia-Herzegovina, as well as cross border deliveries towards Romania, and Croata and Ukraine. In internatonal compar-ison, the Companys pipeline network repre-sents the highest technology standards. FGSZ ranks among the regions companies of stra-tegic importance. Its dynamismand efciency make the Company one of Europes most signifcant transmission systemoperators.Thepipelinedevelopmentsofstrategic importancecarriedoutbyFGSZinrecent yearssafeguardtheCompanysfuture, establish its role as a regional distributor, as well as ensuring Hungary has a safe, environ-mentfriendlyandcompettvelypricedgas supply.wearepreparedtofacethechal-lenges,tasksandrequirementsderiving fromtheestablishmentofamarketwhich isliquid,integratedanddiversifedinterms of its resources, and which is also supported bytheEuropeanUnion.Ourstrategicgoals necessitatefurtherefcientandwell-planned infrastructure developments.HIGHLIGHTS

5,784 km pipeline system

1domestic, 4 import entry points, nearly 400 exit points

6 regional centers,6 compressor stations

World-class systems operation centre in Sifok, HungaryNatural Gas Transmission47promotethecreatonof thedomestc liquidgas market. The transformaton of the gas market is allowing domestc consumers to access gas sources competng against each other in the region, and thus to optmise their portolios in line with their possibilites.As the frst step in our strategic investments between 2006and2010,wesignifcantlyincreasedEastern import capacity in line with the development of our strategicstoragefacility.wealsoconstructedthe Hungarian-Croatan and Hungarian-Romanian inter-connectors.Thesecondstageofstrategicinvestmentsplanned forthe2011-2020periodincludesdevelopmentin thenorth-westandnorth-east.FGSZisplanningto expandexistngimportcapacitesfromthewest, alongwithinternalimprovementstoguarantee security of supply for the Trans-Danubia region inde-pendently of the HAG pipeline.In2012,theCompanyconcludedacooperaton agreementwithUKRTRANSGAZfornaturalgas transmission from Hungary to Ukraine, as the result ofwhichithasprovidedtheoptonofnaturalgas transmissiontoUkraineonaninterruptblebasis since the spring of 2013.FGSZhassetthegoalofguaranteeingthepossi-bilitytoimportnaturalgasfromeverydirectonin theinterestofsecurityofsupply,andofbecoming anintegralpartoftheregionthatsurroundsit bymakingitsexistngcross-borderconnectons bi-directonal. Developing the opton for gas supply from Romania was an important step in this regard. Althoughcapacityopenedinthefrststageonly allowsforthedeliveryofasmalleramount,FGSZ anditsRomanianpartnerareworkingtogetherto expandthissignifcantly.Hungarysgassupplywill besetonamoresecurefootngbytheconnecton ofsouthernandsouth-eastern,theneastern,and fnally northern and western gas sources. Thelong-termstrategicinvestmentsofFGSZ makeitpossibleforHungarytoleaveitscurrent peripheral role in gas transmission and to develop into a regional gas distribution center in the next decade.REGULATED TRANSMISSION TARIFF CHANGESThetransmissiontarifsessentallyremainedthe samebothincontentandinsizein2014.However, therehavebeensomechangesintherulesthat governtheapplicatoninthespiritoftheprep-aratonfortheEU-levelharmonisatonofappli-cablesystemusageregulatons(CAMNC),which willenterintoforcein2015,andthetarifsystem. In this context, the authority responsible for setng prices, the Hungarian Energy and Public Utlity Regu-latoryAuthority,rearrangedentryandexitfees, whichdidnotincreasethetotalearningsofFGSZ butcanfacilitatemoreefectvecostmanagement forthesystemsusers.Inadditon,anewproduct (quarterly capacity) and a new pricing for short-term capacity booking were also introduced into the regu-laton. As an additonal regulatory change in 2014, a newrule(interruptblepricing)wassetinorderto encouragesystemuserstoincreasestoredquant-tes, which will have a signifcant fnancial impact on FGSZ mainly in 2015.Theofcialcostreviewthatbeganin2013wasnot fnished in 2014, so the regulatory cycle that began on 1 January 2010 is stll in efect.FGSZsRegionalBookingPlatform(RBP),anIT capacityallocationapplicationdevelopedunder aEuropeanUnionproject,whichisaHungarian-RomanianpilotinaccordancewithCommis-sionRegulation(EU)No984/2013establishinga Network Code onCapacity Allocation Mechanisms inGasTransmissionSystemsandsupplementing Regulation(EC)No.715/2009oftheEuropean ParliamentandoftheCouncil,waslaunchedat theendof2014.Thisapplicationissuitablefor running CAM NC compliantcapacity auctions not only at the cross-border or domestic points found inFGSZssystem,butalsoatanyothernetwork point, even those independent of the cooperating national natural gas transmission system.COMPETITIVE ADVANTAGES

GEOGRAPHICLOCATION:FGSZalsoplaysakey role in terms of regional transit transmission.

qUALITYASSURANCE:In1997,auditedand certfed quality management systems were put in placeatFGSZ.Since2014,thesehavebeenoper-atngasanintegratedsystemwiththefollowing components: Quality Management System (QMS), TechnicalSafetyManagementSystem(TSMS), Informaton Security Management System (ISMS), CalibratonLaboratoryManagementSystem (CLMS) and welding Management System (wMS).In2014,FGSZsuccessfullycompletedtwointe-grated inspectons carried out by SGS Hungria Kf. in accordance with the ISO 9001:2008 and the ISO/IEC 27001:2005 standards.The accreditaton process for the calibraton labo-ratorysactvityisunderwayinaccordancewith theprovisionsofMSZENISO/IEC17025:2005.In 2014,theNatonalAccreditatonBoardreviewed andaccepteddocumentatonsubmitedinJune 2013.Theaccreditatonwilllikelybeacquiredin 2015.In 2014, FGSZ began to create and implement the EnergyManagementSystem(EMS)inaccordance with the ISO 50001 standard, which is expected to be completed by 5 December 2015.

Stablecashfow:TheoperatonofFGSZshigh-pressurenaturalgastransmissiongridofapprox-imately5,800kmcoveringtheentreterritory ofHungaryandthenon-discriminatorysaleof its capacites and supplementary services provide stable cash-fow for the MOL-Group.KEY ACHIEVEMENTS quintuple Best Employer FGSZhaspartcipatedonBestEmployerSurveyof Aon Hewit since 2009. FGSZ has been Best Employer in Hungary fves tmes and Best Employer in Central Eastern Europe on three occasions.OUTLOOKEuropean dimensionsFGSZ is interested in creatng a more efcient gas market restng, on several pillars. Therefore, in the 10-year period between 2015 and 2024, it wishes to partcipate in comprehensive infrastructure devel-opments at both Hungarian and internatonal level to Natural Gas Transmission49PUSZTAEDERICSSIFOK CENTERKPOLNSNYKGELLNHZABABCSAVECSSSZANKKARDOSKTALGYSZREG ZSANAVROSFLDKECSKEMTKENDERESHAJDSZOBOSZLENDRDNEMESBIKKMISKOLCBEREGDARCTISZAVASVRISLOVENI ACROATI ASERBI AMOSONMAGYARVR MOSONMAGYARVR MOSONMAGYARVRSLOVAKI ABTADRVASZERDAHELYBEREKFRDZSMBOK ROMANI APORTFOLIO ELEMENTS(Volume data at 15C)2014 (cubic meters)Total quantty of natural gas measured at the entry and exit points:20.9 billionInjecton through cross-border pipelines:10.5 billionBeregszsz: 6.4 billionHAG:4.1 billionCsandpalota:0.1 millionSystem interconnector Vecss 4 (MGT>FGSZ)*2.4 millionDelivery from storage at receipt points:4.9 billionInjecton:3.2 billionwithdrawal:1.7 billionAt upstream pipeline connectons:3.2 billionInjecton:2.5 billionInjecton circuit withdrawal:0.7 billionDelivery through cross-border pipelines:2.3 billionTransit and export:2.3 billionSystem interconnector Vecss 4 (FGSZ>MGT) *4.5 millionTOTAL PERFORMANCE IN 2014(Testvrisg, sszefogs) Entry point(cubic meters)Annual frm capacity 20.5 billionDaily frm peak capacity 56.3 millionAnnual interruptble capacity 5.5billionDaily interruptble peak capacity15 millionExit point Annual interruptble capacity 6.1 billionDaily interruptble peak capacity 16.8 millionUKRAINIAN/HUNGARIAN INTERCONNECTORExit point(cubic meters)Annual frm capacity 1.7 billionDaily frm peak capacity 4.8 millionEntry point Annual frm capacity 0.1 billionDaily frm peak capacity0.24 millionAnnual interruptble capacity 1.7 billionDaily interruptble peak capacity 4.8 millionHUNGARIAN/ROMANIAN INTERCONNECTORExit point(cubic meters)Annual frm capacity 2.6 billionAnnual interruptble capacity 4.4 billionDaily frm peak capacity 7.2 millionDaily interruptble peak capacity 12.0 millionEntry point Annual frm capacity0 billionAnnual interruptble capacity7 billionDaily frm peak capacity0 millionDaily interruptble peak capacity 19.2 millionHUNGARIAN/CROATIAN INTERCONNECTOR2014 (cubic meters)Total without strategic withdrawal 177.8 millionof which interruptble 47.8 millionImport98.6 millionof which interruptble 41.3 millionTransit 11.3 millionStorage for commercial purpose 59.6 millionof which interruptble 6.5 millionStorage for strategic purpose20.0 millionDomestc producton 8.3 millionDAILY ENTRY PEAK CAPACITY OF THE NATURAL GAS TRANSMISSION SYSTEM14 Entry points(cubic meters)Annual frm capacity 1.7 billionDaily frm peak capacity 8.3 millionDOMESTIC PRODUCTION (cubic meters)Annual frm capacity 1.2 billionDaily frm peak capacity20 millionCAPACITY OF UNDERGROUND STORAGESOF STRATEGIC PURPOSES5 entry points(cubic meters)Annual frm capacity 5.1 billionDaily peak capacity 59.6 millionof which interruptble 6.5 millionCAPACITY OF UNDERGROUND STORAGES OF COMMERCIAL PURPOSES(from HAG pipeline directon) Entry point(cubic meters)Annual frm capacity 4.4 billionDaily frm peak capacity 12.1 millionAnnual interruptble capacity 0.8 billionDaily interruptble peak capacity 2.3 millionAUSTRIAN/HUNGARIAN INTERCONNECTORExit point(cubic meters)Annual frm capacity 4.8 billionDaily frm peak capacity 13.2 millionHUNGARIAN/SERBIAN INTERCONNECTOR* quantty of natural gas during test periodNATURAL GAS TRANSMISSION PLANTCOMPRESSOR STATIONIMPORT ENTRy POINTPRODUCTIONSTORAGESTORAGE FOR STRATEGIC PURPOSESGAS TRANSFER STATIONGAS PIPELINE 1000mmGAS PIPELINE 600 mmGAS PIPELINE 300 mmGAS PIPELINE < 300 mmNatural Gas Transmission51MANAGEMENT DISCUSSIONAND ANALYSIS53Management Discussion and AnalysisMANAGEMENT DISCUSSION AND ANALYSIS OF 2014 BUSINESS OPERATIONSSUMMARY OF 2014 RESULTS In 2014, MOL Group delivered a clean CCS EBITDA of HUF 511bn (or USD 2.2bn) which is a mere 1%decrease in HUF terms compared to 2013.In Upstream, the 24% or HUF 86bn decrease, excluding special items, wasmainlyatributabletoaloweroilprice,thenaturaldeclineof matured assets and adverse regulatory changes. The combined efect ofaregulatedgaspricereductonanddoubledroyaltesinCroata reached HUF 20bn in 2014. Moreover, the impact of asset divestures in Russia (ZMB in Q3 2013 and 49% of BaiTex LLC in Q1 2014) has only been partally mitgated by new asset purchases in the North Sea and intensifedfelddevelopmentactvitesinourinternatonalopera-tons. However, the Upstream division met its strategic targets, deliv-ered the producton level forecasted, and lower lifing costs in 2014 on a like-for-like portolio basis. The Downstreamdivisions clean CCS results were 32%ahead of similar fgures in 2013. MOL Groups refnery margin, as well as the integrated petrochemical margin, widened, which, together with beter retail performance, supported the results. The implementaton of efciency improvement measures also played a keyrole in theoutstanding results. In 2014, MOL Group successfully completed its three-year New Downstream Program, which delivered a USD 500mn improvement, hence elevatng the results. However, a few planned and unplanned shutdowns and the non-recurring costs of the Mantua Refnery conver-sion hindered the full capture of more favourable market conditons.Gas Midstreams contributon was more than 37% lower than a year ago. This signifcant drop was a result of an enforced gas inventory sale due to regulatory changes in Croata, and a lack of revenue fromstorage following the sale of MMBF in Q4 2013. In 2014, MOL Group generated HUF 422bn operatng cash fow, before working capital changes, which was 16% behind the 2013 value. The decrease refects the fact that reported EBITDA shrank (by HUF 113bn) well ahead of clean CCS fgures on a similar basis (down by HUF 5bn).

Upstream: The Upstream divisions EBITDA, excluding special items, reachedHUF270bn-lowerthan2013sperformanceby24%. Thiswasnegatvelyafectedby:(1)loweraveragerealisedhydro-carbonpricesduetounfavourablechangesinoilandgasprices; (2)thereductonoftheregulatedgaspriceanddoubledroyaltes in Croata; (3) lower producton from matured CEE assets and due to Russian divestures (ZMB in Q3 2013 and 49% of BaiTex LLC in Q1 2014); (4) higher exploraton costs in relaton to accelerated interna-tonal work programmes; and (5) an increase in Q1 2013 Upstream performance by HUF 8bn non-recurring revenue due to a modifca-ton to the transfer parity of Croatan crude oil.

Downstream:InDownstream,clean-CCS-basedEBITDAcame in32%strongerandamountedtoHUF206bn.Theimprovement was supported by: (1) a 23% uplif of the integrated petrochemical margin;(2)asignifcantlyimprovedretailcontributonsupported by a sales increase in core countries and higher captured margins; (3) the widening Group refnery margin by over 1 USD/bbl, (4) posi-tve sales margins development; and (5) the implementaton of New Downstream Efciency measures.

Gas Midstream: In 2014, EBITDA, excluding special items, amounted to HUF 37bn, 37% lower compared to the base period. This signif-cant drop is a result of an enforced gas inventory sale due to regu-latory changes in Croata and lack of storage revenues following the saleoftheHungarianstorageunit(MMBF)inQ42013(HUF21bn contributoninthebaseperiod).TheHungariangastransmission business delivered solid results in light of a further cut in regulated returns in November 2013.

CorporateandotherdivisionsdeliveredanEBITDAimprovement ofHUF21bnin2014andamountedtoHUF(22bn).Beyondcost-cutngmeasuresinthecorporatecentre,thiswasmostlyatrib-utable to higher contributons from oil service companies due to a beter utlisaton rate of rigs.

Net fnancial expenses rose to HUF 104bn in 2014 compared to HUF 58bn in the base period, mainly as a result of the weakening HUF, whichwasmostlyrepresentedinnetforeignexchangelosseson borrowings and payables.

CAPEX spending reached HUF 534bn in 2014, of which HUF 135bn targetedinorganicinvestmentsmainlythroughthecompletonof NorthSeaacquisitonsandaretailnetworkacquisitoncomposed of44statonsintheCzechRepublic.OrganicCAPEXamountedto HUF 399bn. Consistent with our strategy, organic CAPEX spending wasskewedtoUpstreamwithHUF205bnspent.Downstream CAPEXgrewnearly100%year-on-yearandorganicexpenditure amounted to HUF 173bn, 44% of which relates to the constructon of the Butadiene plant, the LDPE4 unit and the reconstructon of the Friendship I crude oil pipeline, while the remaining 56% is made up by maintenance, sustain, legal and efciency spending.

Operatngcashfowbeforeworkingcapitalchangesdropped by16%toHUF422bnmostlyduetolowerUpstreamcashgene- raton. Operatng cash fow amounted to HUF 435bn (lower by 29% comparedtothebaseperiod),whichalsorefectedhighercash outlows in the working capital lines.

The decreasing trend of indebtedness ratos stopped, however stll remained on favourable levels. The slight increase is partally due to cash outlow regarding the current years upstream and retail asset acquisitons, and partally due to FX changes. The Net gearing rato increasedto19.6%attheendoftheperiod,increasingbyclose to4percentagepointsagainstthebaseperiod,whilenetdebtto EBITDA reached 1.31 by the end of the year.55Management Discussion and Analysis KEY FINANCIAL DATA BY BUSINESS SEGMENT NET SALES REVENUES Fy 2013 Fy 2014 Fy 2013 Fy 2014(HUF mn) (HUF mn) (USD mn)5(USD mn)5Upstream 608,258514,092 2,7192,215Downstream 4,847,9694,410,471 21,67219,008Gas Midstream385,522232,806 1,7231,006Corporate and other 201,009217,220 899932Total6,042,7585,374,589 27,01323,161Total External Net Sales Revenue 5,400,417 4,866,607 24,141 20,975EBITDAFy 2013 Fy 2014 Fy 2013 Fy 2014(HUF mn) (HUF mn) (USD mn)5(USD mn)5Upstream 367,005285,784 1,6411,233Downstream 108,49295,512 485428Gas Midstream55,93037,020 250157Corporate and other (42,201) (23,509) (189) (99)Inter-segment transfers231,83213,557 14257Total 521,058408,364 2,3291,776EBITDA EXCL. SPECIAL ITEMS3Fy 2013 Fy 2014 Fy 2013 Fy 2014(HUF mn) (HUF mn) (USD mn)5(USD mn)5Upstream 356,498270,381 1,5941,165Downstream 134,579110,795 602488Clean CCS-based DS EBITDA3,4156,827 206,333 701 874Gas Midstream58,78137,019 263157Corporate and other (42,201) (21,532) (190) (91)Inter-segment transfers2(13,431) 13,558 (60) 57Total* 494,226 410,221 2,2091,776 Clean CCS-based EBITDA3,4516,474 510,607 2,308 2,183OPERATING PROFITSFy 2013 Fy 2014 Fy 2013 Fy 2014(HUF mn) (HUF mn) (USD mn)5(USD mn)5Upstream 142,43275,275 637352Downstream (169,659) (31,579) (758) (113)Gas Midstream34,00923,532 15299Corporate and other (62,351) (43,525) (279) (184)Inter-segment transfers236,94116,377 16569Total (18,628) 40,080 (83) 223OPERATING PROFITS EXCL. SPECIAL ITEMS3 Fy 2013 Fy 2014 Fy 2013 Fy 2014(HUF mn) (HUF mn) (USD mn)5(USD mn)5Upstream 175,290110,301 784485Downstream 6,986(306) 3110Gas Midstream36,86023,532 16599Corporate and other (62,351) (40,835) (279) (174)Inter-segment transfers2(8,322) 16,377 (37) 69Total 148,463 109,069 664489* In 2014, the intersegment line contains HUF 4,848mn (USD 21mn) non-recurring inventory loss related to methodology changes, which impacted the Group CCS line.Notes and special items listed in Appendix I and II.STRATEGIC OUTLOOK FOR MOL GROUP IN 2015 The year 2014 was challenging not only for MOL Group, but for the whole oil & gas sector, with the oil price plunging by almost half. Despite a tough external environment, MOL Group managed to deliver strong results reaching USD 2.2bn Clean CCS EBITDA. Furthermore, we managed to sustain a strong cash fow generatng ability, growing our capital expenditures to an all-tme high, while keeping gearing and indebtedness at relatvely low levels of 19.6% and 1.31x respectvely.The last twelve months have demonstrated that MOL Group is well protected against sharp drops in oil prices, and will contnue to be for the foreseeable future, given the strength and resilience of our integrated business model. Having achieved the right balance between Upstream and Down-stream(eachcontributng53%and40%respectvelytoGroupCCSEBITDAin2014),willallow MOL Group is expected to reach around USD 2bn CCS Group EBITDA for 2015, even at around a 60 USD/bbl price environment. During2014,MOLGroupinvesteditshighestleveloforganicCAPEX(USD1.7bn)ofthepast fve years, to fuel its future growth. For 2015, we foresee a USD1.5-1.8bn CAPEX level, retaining furtherfexibilityduetoacombinatonofscopeadjustments,thepotentalefectsofloweroil prices on key partners and increased scrutny and evaluaton of projects.In line with our conservatve fnancial policy, organic CAPEX is expected to be covered by oper-atng cash fow.For Upstream, 2014 producton reached 98 mboepd, ahead of our original target of 91-96 mboepd. Producton has been growing since mid-2014 and we expect the contnuaton of this trend in 2015. TheUpstreamportolioinitscurrentformwillbeabletodeliveraproductonlevelof105-110 mboepdfor2015.Furthermore,MOLGroupsurpassedthe100%organicreservereplacement rato, reaching a level of 103% during 2014. we are aiming to maintain this level going forward. At the same tme we intend to maintain rigorous discipline to keep lifing costs in a fat to declining range country by country. For 2015, we expect total CAPEX for Upstream to reach USD 0.9bn, of which a ffh will be earmarked for exploraton projects. MOLGroupwantstocontnueitsactveportoliomanagementapproach,whichwefollowed during 2013 and 2014 when we disposed of some assets in Russia and entered into the North Sea regions through acquisiton of several non-operated ofshore assets. AlthoughacontnuedlowoilpriceposesagreatchallengeforUpstream,webelievethatMOL Group can beneft from the lower oil price environment by seizing atractve new opportunites in the markets where we operate. while there is no rush to do so, a healthy balance sheet and an overall strong fnancial positon allows us to be ready to act in case the right opportunity presents itself, as we aim to balance further the portolio in terms of country risk, and seek new accretve exploraton and development opportunites to grow our internatonal E&P portolio. Downstreamdeliveredstrongresultsduring2014,reportngCCSEBITDAofUSD0.87bn,an increase of 25% in USD terms compared to 2013.