Innovative Businesses and Services
In the fast-changing world, new consumer habits and technological developments are transforming the business and consumer demand. As part of our MOL Group 2030 strategy, we recognized that managing successful service-type businesses requires different approach from the industrial operational logic. In this spirit, in 2016 we decided to transfer our retail activities from Downstream to a newly established Innovative Businesses and Services business line in order to seize arising opportunities. This new umbrella organization includes business activities and ventures which are not directly connected to the traditional oil and gas industry,but serve individual consumers and industrial customers as well. The long-term vision of Innovative Businesses and Services is driven by customers’ behaviour and needs. MOL Group would like to become a connected and innovative solution provider, building on its extensive customer and network base.
Innovative businesses and services consist of two pillars: Consumer Services and Industrial Services.
The success and profitability of our current Consumer Services business have been defined by fuel retailing for the past 75 years. On the back of our strong refining and logistics capabilities and widespread legacy network, we have built a leading fuel retail operation in the CEE region, with a 10 million retail customer base and one million daily transactions. MOL Group owns numerous service companies covering oil field services, asset operations and maintenance management. The Industrial Services business unit was established to provide these services for internal customers across MOL Group in an integrated manner, while aiming to offer them to third-party companies as well.
Despite healthy growth of fuel consumption in Central Eastern Europe in the past several years, advancements in technology and new consumer habits have fundamentally changed what has so far been considered fuel retailing. Looking at the next five years, fuel consumption is still expected to grow in CEE, however, our long-term outlook is that fossil fuels will lose their monopolistic dominance by the end of the next decade.
At MOL, we realized that we need to go beyond the current offer to thrive in this new environment. Therefore, as part of MOL Group 2030 strategy, we will transform our retail operations by tapping into growing areas of consumer demand and take part in the reinvention of transportation in CEE.
Key Facts and Figures
- USD 471m EBITDA
- 54 mn cups of coffee sold
- ~900+ Fresh Corner sites (out of ~1,900 total sites)
- Increasing gross margin contribution of Consumer goods to 29%
- ~85 mn passenger km sold within mobility services
Consumer services currently consist of 3 main pillars:
The strategic goal of Industrial Services is twofold: to further increase the quality and level of services provided to internal customers as well as to utilize our vast knowledge to create additional value for external customers. Moreover, MOL Group is committed to gradually extend its industrial services portfolio and enhance participation and partnerships within these sectors.