Repsol Sa · BME:REP
Repsol Sa — ESG Presentation (January 2020)
50 slides from Repsol Sa's sustainability presentation, January 2020
Slide 1: Walking the talk on energy transition
Walking the talk on energy transition January 2020 = REPSOL
Slide 2: All rights reserved
ALL RIGHTS ARE RESERVED © REPSOL, S.A. 2019 Repsol, S.A. is the exclusive owner of this document. No part of this document may be reproduced (including photocopying), stored, duplicated, copied, distributed or introduced into a retrieval system of any nature or transmitted in any form or by any mean
Slide 3: Index
Company overview Sustainability as part of Repsol’s DNA Climate Change Corporate Governance Annexes
Slide 4: Company Overview
Ul Lompany Overview
Slide 5: Delivering value growth through the cycle
01 Company overview Delivering value growth through the cycle 1. Increasing shareholder returns 2. Growing our portfolio profitably Dividend per share 8% p.a. growth with full buyback of shares Growth across all value-creation metrics, at any oil price Dividend target fully covered at $50/bbl
Slide 6: Repsol: a unique, integrated global position
01 Company overview Repsol: a unique, integrated Global Position Multy-energy company ~715 kboe/d production ~2.3 billion boe proved reserves1 Gas to oil ratio: 73% of the reserves and 63% of the production Sacyr 1 Million bbl/d refining capacity Free Float ~2.6 Millions tons of base chemicals3 capa
Slide 7: Key metrics to 2020 @ $50/Bbl Brent flat
01 Company overview Key metrics to 2020 @ $50/Bbl Brent flat Production CFFO EPS DPS 2.6% CAGR +€1.9B growth +€0.6/share growth 8% CAGR CAGR kboe/d 2.6% CAGR 750 CAGR CAGR +8% 750 +12% DPS paid 695 +12% on year 1.0 € Billion 6.5 EPS 2.0 €/share €/share 0.8 4.6 1.4 Scrip dividend Scrip dividends 0.2
Slide 8: Growing our portfolio profitability
01 Company overview Growing our portfolio profitability 2019E (B€) +0.3 +0.33 +0.08 +0.133 +0.12 +0.06 +1.0 UPSTREAM DOWNSTREAM CORPORATION +1 B€ + 0.8 B€ + 0.1 B€ 2017 CFFO1 New RISE (efficiency & International Profitability Expand & Low Corporate & 2020 CFFO @50 $/bbl production Digital Program)2
Slide 9: Strategic Plan fully funded at $50/bbl
01 Company overview Strategic Plan fully funded at $50/bbl - Strategic progress Fully funded at $50/bbl keeping a strong financial position Total Group’s Free Cash Flow breakeven, excluding inorganic capex and divestments, was 54 $/bbl in Sources of cash Uses of cash 2018, in line with our strategic
Slide 10: Sustainability as part of Repsol's DNA
02 Sustainability as part of 10
Slide 11: Sustainability as part of Repsol's DNA
02 Sustainability as part of Repsol’s DNA Established on Approved by the Existence of a Approved on June 2017 Aligned with the May 27th, 2015 Board of Directors on Sustainability model and it is reviewed consecution of the December 2015 and approved by the annually. It establishes Sustainable update
Slide 12: Repsol's Global Sustainability Plan: main axes
02 Sustainability as part of Repsol’s DNA Repsol’s Global Sustainability Plan: main axes Our ambition: zero Accidents Embedded safety culture Repsol will be a net zero emissions 33,33% of women on the Board of Directors Strict asset integrity procedures company by 2050 reaching our target
Slide 13: Safe operations
02 Sustainability as part of Repsol’s DNA Safe operations Our ambition: zero accidents We have established targets to reduce PSIR1 and occupational safety (LTIFR2 and TRIR3) 2 fatalities in 2018 (accidents in transport activities in Spain) Occupational Safety 1-2 Process Safety Incident Rate3 LTIFR
Slide 14: Safe operations
02 Sustainability as part of Repsol’s DNA Safe operations Culture Project: Developed our own evaluation methodology on safety culture, Make headway with the implementation of the Company's aiming to identifying strong and weak points. The results enable the Crisis Plan by carrying out a crisis m
Slide 15: Ethics and Transparency
02 Sustainability as part of Repsol’s DNA Ethics and Transparency Our ambition: No cases of corruption in the activities carried out by the Repsol Group A new Code of Ethics and Business Allows employees and third parties to A formal framework of regulations, Conduct was approved by the Board
Slide 16: Ethics and Transparency
02 Sustainability as part of Repsol’s DNA Ethics and Transparency Our ambition: No cases of corruption in the activities carried out by the Repsol Group Its duty is to manage the compliance Strengthening the role of compliance It enshrines the company’s commitment to of the Repsol Group’s Ethi
Slide 17: Ethics and Transparency: tax
02 Sustainability as part of Repsol’s DNA Ethics and Transparency Our ambition: Achieve public recognition as a responsible and transparent company in tax matters 01 Responsible compliance Application of the Spanish Code of Good Tax Practices 04 Prevention of significant tax risks Incorporation
Slide 18: People: respect for Human Rights and community relations
02 Sustainability as part of Repsol’s DNA People: respect for Human Rights and community relations Committed to UN Guiding Principles on Business and Human Rights “Protect, Respect and Remedy”. Global Framework and management system, compliant with leading International Standards (International
Slide 19: People
02 Sustainability as part of Repsol’s DNA People Our ambition: to achieve and maintain strong relationships with communities based on trust Repsol recognizes and respects the unique nature of Repsol carries out human rights impact assessments as indigenous, tribal and aboriginal peoples and thei
Slide 20: Human Rights and community relations: best practices
02 Sustainability as part of Repsol’s DNA People: respect for Human Rights and community relations: Best practices No-go decision after performing a human rights impact Repsol and the United Nations Development Program will assessment in La Guajira (Colombia) collaborate to promote sustainable devel
Slide 21: Environment
02 Sustainability as part of Repsol’s DNA Environment Our ambition: neutral environmental impact of natural resource management Established contact with more than 300 external companies that can contribute to the definition and start-up of projects Generation of new circular projects in the fiel
Slide 22: Environment: water, biodiversity and ecosystem services
02 Sustainability as part of Repsol’s DNA Environment WATER BIODIVERSITY AND ECOSYSTEM SERVICES Repsol has defined the 2025 strategic actions to achieve a sustainable Prevention and minimization of any negative environmental impact in all our management of water : operations: • First O&G company to
Slide 23: Innovation and technology
02 Sustainability as part of Repsol’s DNA Innovation and technology RESEARCH AND DEVELOPMENT CORPORATE VENTURING: FUND 2016-2020 New Technologies E&P 200 +230 20 patents registered 4% Circular Economy projects researchers Advanced Mobility 21% in 2018 25% 190 84 85M€ Reliability in operations 7% par
Slide 24: Repsol and the Low Carbon transition
03 Repsol and the 24
Slide 25: Our view on energy transition
03 Repsol and the Low Carbon transition Our view on energy transition These programs pursue long- term targets which have been made public in order to facilitate their progress by the stakeholders. At Repsol we believe that two global goals have to be pursued: • To fight against climate In this sens
Slide 26: Governance
03 Repsol and the Low Carbon transition Governance Sustainability Committee created in 2015 The Board of Directors, at the proposal of the At least twice a year, or as often as necessary, the CEC and the Sustainability Committee, approves the strategy for Sustainability Committee review information
Slide 27: Scenario Analysis
03 Repsol and the Low Carbon transition Strategy Scenario Analysis Our ambition: to position ourselves in a scenario compatible with Paris Agreement 2ºC • Improving efficiency and saving energy: The most cost effective method of reducing GHG emissions is to save energy • Reducing emissions from powe
Slide 28: 2018-2020: Thriving in the energy transition
03 Repsol and the Low Carbon transition Strategy 2018- 2020: Thriving in the energy transition First company in its industry to set this ambitious goal in line with the Paris Agreement’s climate challenge Supply energy (GJ) with the lowest possible emissions (CO2) Repsol has stablished new goals
Slide 29: Strategy: natural gas and energy efficiency
03 Repsol and the Low Carbon transition Strategy 01. WE PROMOTE THE ROLE OF NATURAL GAS 03. ENERGY EFFICIENCY • 63% of our production and 73% of our reserves are gas • Our objective: to reduce 3 million tons CO2 eq for the period 2018– • Committed to mitigate methane emissions associated with our 20
Slide 30: Strategy: low-emissions business
03 Repsol and the Low Carbon transition Strategy 05. LOW-EMISSIONS BUSINESS 2.9 GW total installed capacity and additional planned projects for ~2.7 GW (1 GW • Developing high value-added products aimed at in operation by 2022) improving people’s quality of life, well-being and safety ( Pol polyols,
Slide 31: Low emissions business: roadmap to 2025
03 Repsol and the Low Carbon transition Strategy Low emissions business: roadmap to 2025 Leverage our industrial self consumption Strong brand and ~10M clients base with Technical capabilities and experience as the largest gas consumer in Spain direct contact in managing large scale projects • Creat
Slide 32: Accelerated delivery of 2025 objectives in low carbon generation
03 Repsol and the Low Carbon transition Accelerated delivery of 2025 objectives in low carbon generation installed capacity MW MW retail customers MW wind farm in Zaragoza wind farm in Palencia and Valladolid solar project in Cadiz solar project in Badajoz Iberian Peninsula largest offshore
Slide 33: Risk Management
03 Repsol and the Low Carbon transition Risk Management Repsol has an Integrated In Europe, current in force, includes a number of key Risk Management System directives, notably the Directive that regulates the Emissions Trading System (EU-ETS). Specifically, in place, enabling the the EU-ETS sche
Slide 34: Risk Management
03 Repsol and the Low Carbon transition Risk Management European Commission has also introduced the 2030 Energy and Climate package with more demanding regulations on EU ETS: Repsol has an Integrated - by 2030: at least -40% below 1990 GHG levels Risk Management System - by 2050: EU leaders have c
Slide 35: Risk Management
03 Repsol and the Low Carbon transition Risk Management Changes in the end use of energy, either as a result of Wide-ranging mobility offer including alternative fuels (e.g Autogas). Already Incorporating sustainable biofuels into our products. Leaders in 01 natural market dynamics, those driven
Slide 36: Metrics and Targets
03 Repsol and the Low Carbon transition Metrics and Targets -3 Mt CO2eq by 2025 -25% by 2025 -50% of routine Baseline: 2017 Baseline: 2017 flaring by 2025 Baseline: 2018 SHARING BEST PRACTICES AND REPSOL ZERO ROUTINE TECHNOLOGY DEVELOPMENT FLARING ENDORSEMENT 1 2 Minimize routine Ensure that new fla
Slide 37: Corporate Governance
aah oO: i = Al ware Corporate Governance
Slide 38: Shareholder structure
04 Corporate Governance Shareholder structure Sacyr M shares as Free Float of December 2019 of retail shareholders1 of institutional shareholder base managed under ESG criteria As of May 2019 38
Slide 39: Board of Directors
04 Corporate Governance Board of Directors The company's Board of Directors recognizes that a solid commitment to corporate governance is critical to establishing trust and credibility with investors. Independents make up 53.3% of the Board. Non Executive Directors make up 93,3% of the Board • None
Slide 40: Board of Directors
04 Corporate Governance Board of Directors The roles of the CEO and Chairman have been fully separated since 2014 • Repsol recognizes that having a diverse Board in terms of gender, nationality and skills can add value to the decision-taking process • As to gender diversity and after the appointment
Slide 41: Board of Directors
04 Corporate Governance Board of Directors The Company continues improving the disclosure on the remuneration issues and the implementation of international best practices The Remuneration Report is submitted annually to the General Shareholders Meeting. On 2019 AGM the Report was approved by 95.6
Slide 42: Annexes
05 Annexes 42
Slide 43: Safety indicators
05 Annexes Safety indicators 140 3,5 0.85 0.89 0.92 2.95 120 3 0.69 0.71 2.38 0.59 100 2,5 2.25 80 2 1.59 60 1,5 1.46 1.43 40 1 0.58 0.78 0.79 0.66 0.63 1.01 20 0,5 0.6 0.92 1.12 0.73 0.78 0.76 0 0 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 Own Emp
Slide 44: Climate reporting and partnership
05 Annexes Climate reporting and partnership Moving from stakeholder engagement to partnerships Historical results 2010 2011 2012 2013 2014 2015 2016 2017 2018 OGCI is an industry-driven initiative officially launched at the UN Climate Summit in 2014. It aims to catalyze action on climate change. Tr
Slide 45: Main Sustainability Indexes and Initiatives
05 Annexes Main Sustainability Indexes and Initiatives FTSE4Good Index and FTSE Russell ESG Rating 2019-2018 IR Magazine Awards: Repsol recognised as Ethibel Sustainability Index (ESI) Excellence Europe, and the Ethibel one of the best five companies in Communication with Sustainability Index
Slide 46: Repsol and the Low Carbon transition: metrics and objectives
05 Annexes Repsol and the Low Carbon transition: metrics and objectives GHG emissions reduction (Millions of Tons of C02) 1.76 Mt GHG avoided between 2014 and 2018. Achieved 85% of 2014- 2020 objective 4.9 Mt GHG avoided between 2006 and 2018 3 Mt CO2 eq emissions reduction target by 2025 46
Slide 47: Board of Directors: composition
05 Annexes Board of Directors: composition Chairman Antonio Vice Chairman Manuel Brufau Manrique Maite Ballester CEO Josu Jon Teresa Imaz García-Milá Independent Director (53.33%) Rene Isabel Dahan Proprietary Director (20%) Torremocha Executive Director( 6,67%) J. Robinson Ignacio West External Dir
Slide 48: Board Committees: composition
05 Annexes Board Committees: composition Chairman Teresa García-Milá Antonio Brufau Independent Director Vicechairman Henri Philippe Manuel Reichstul Proprietary Director Chairwoman Manrique Isabel Torremocha Maite Executive Director J. Robinson Ignacio Ballester West Martín External Director Luis S
Slide 49: Repsol Investor Relations contact details
Repsol Investor Relations contact details: Mr. Ramon Álvarez- Pedrosa, Director of Investor Relations ralvarezp@repsol.com + 34 91 7536315 Ms. Leticia Padura, Investor Relations ESG Manager lpadurafn@repsol.com +34 91 7535988 Ms. Sara Elizalde, Investor Relations ESG Analyst sara.elizalde@repsol.com
Slide 50: Walking the talk on energy transition
Walking the talk on energy transition December 2019 50