Slide 1: Investor Update
Investor Update May 8th, 2020 0
Slide 2: Disclaimer
Disclaimer ALL RIGHTS ARE RESERVED © REPSOL, S.A. 2020 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
Slide 3: Agenda
1. Company overview 2. Resilience plan 2020 3. Operational highlights 1Q20 4. Net zero emissions 2050 5. Upstream 6. Industrial 7. Commercial and Renewables 8. Outlook 2020 9. Historic data book
Slide 4: Company overview
ally . a REPSOL Company overview
Slide 5: Repsol: a unique, integrated global position
Repsol: a unique, integrated global position Company Overview Upstream Industrial Commercial and Renewables Upstream Refining Chemical Mobility Gas&Power Installed Refineries Total production Service stations Production generation capacity 6 capacity2 >4,900 ~709 kboe/d ~3 GW ~4.7 Millions tons Refi
Slide 6: Worldwide presence
Worldwide presence Company Overview 8.2% Sacyr 91.8% Free Float Upstream Downstream Both 23% of retail shareholders 30% of institutional shareholder base managed under ESG criteria 5
Slide 7: Integrated model and portfolio flexibility to withstand crisis
Integrated model and portfolio flexibility to withstand crisis Company Overview Tier-1 Resilience Plan that stands out in 2020 self-finance commitment to face the the sector crisis: Net Debt flat vs. Dec’2019 Sustainable multi-energy project: Industry leading dividend yield decarbonization strategy
Slide 8: Increasing shareholder remuneration and full buyback of scrip
Increasing shareholder remuneration and full buyback of scrip Company Overview Dividend per share based on disbursement year CAGR +8% €/share 0.80 (1) 0.95 (1) 1.00 0.90 (1) Historic cash dividend Buybacks Historic scrip dividend Scrip dividend + buybacks 0.19 2017 2018 2019 2020 Buyback program in
Slide 9: Resilience plan 2020
2 Resilience plan 2020
Slide 10: Expected savings of ~2.2 B€ in a challenging macro scenario
Expected savings of ~2.2 B€ in a challenging macro scenario Resilience plan 2020 Public Domain Companies’ Cuts over 2019 CFFO Resilience Plan 2020(1) 73% Opex and WC • Opex €350 M 54% Capex Cuts • Capex €1,000 M (60% in Upstream) Buybacks Cuts • Working Capital €800 M Dividends Cuts 30% 29% 29% Euro
Slide 11: Through capex, opex cuts and working capital release
Through capex, opex cuts and working capital release Resilience plan 2020 1 Capex Savings of €1 B in 2020 2020 2020 New Reduction 2 Budget budget WC Savings of €0.8 B in 2020 Company capex €3.8 B €2.8 B -26% Change in payment methods Upstream Lower inventories in Refining Capex -35% Displacement of
Slide 12: Solid financial position that covers obligations beyond 2024
Solid financial position that covers obligations beyond 2024 Resilience plan 2020 As of March 2020 Total liquidity (€B) Debt Maturities covers 1.6x 8.1 short-term Committed Credit Lines 2.7 debt maturities and long term beyond 2024, Cash & Equivalents 5.3 5.0 3.2 without need 2.1 of refinancing Liqu
Slide 13: Operational highlights 1Q20
3 Operational highlights 1Q20
Slide 14: Upstream production increases Y-o-Y
Upstream production increases Y-o-Y Operational highlights 1Q20 (Kboed) +52 -3 710 700 -13 -27 Europa & Latin North Asia, Africa America America Russia & Rest of the world 1Q19 1Q20 Higher volumes in Eagle Ford, Marcellus and the first oil in Buckskin in June 2019 partially offset by lower gas deman
Slide 15: Resilient performance of Industrial businesses
Resilient performance of Industrial businesses Operational highlights 1Q20 Refining • 4.7 $/bbl refining margin indicator Premium in the CCS unit margin despite volatile environment and lower utilization rates • 82% distillation utilization Chemicals • International margins improvement Cracker downt
Slide 16: Commercial and Renewables
Commercial and Renewables Operational highlights 1Q20 Mobility • COVID-19 negatively impacting sales since mid-March • Robust performance: higher margins and international businesses Lubricants contribution • Negative impact from lower regulated bottle margins and a LPG mild winter • Growing retail
Slide 17: 1Q20 results
1Q20 results Operational highlights 1Q20 Results (€ Million) Q1 2020 Q1 2019 Upstream 90 323 Industrial 288 271 Commercial and Renewables 121 137 Corporate and Others (52) (113) Adjusted Net Income 447 618 Net Income (487) (1) 608 Financial data (€ Million) Q1 2020 Q1 2019 Operating Cash Flow 596 1,
Slide 18: Net zero emissions 2050
4 Net zero emissions 2050
Slide 19: Strategy towards achieving net zero emissions in 2050
Strategy towards achieving net zero emissions in 2050 Net zero emissions 2050 New emissions reduction objectives of Carbon Our challenge: Intensity Indicator1 Lead the Energy transition in line with the objective of the Paris 2025 2030 -10% Agreement to limit the increase in -20% 2040 global tempera
Slide 20: Natural gas and energy efficiency as main levers
Natural gas and energy efficiency as main levers Net zero emissions 2050 1 Natural Gas role 2 Energy efficiency 3 Low Carbon 4 Technological developments 64% of our production Reduce our Energy Generation and Capture, usage and storage Consumption and GH commercialization of of CO2 emissions renewab
Slide 21: Upstream: cash generator in challenging price scenarios
Upstream: cash generator in challenging price scenarios Net zero emissions 2050: Upstream Upstream Portfolio improvement Capex and Exploration Energy Transition Assets Unconventional investment flexibility Emission reductions Geographical concentration and short cycle projects Methane: 25% in 2025 A
Slide 22: Industrial: circularity and emission reduction
Industrial: circularity and emission reduction Net zero emissions 2050: Industrial Refining Chemical First quartile of European refining Raw materials Optimization and digitization Flexibility Emission reduction Increasing presence of circular raw material Energy efficiency Carbon intensity reductio
Slide 23: Commercial and G&P: customer centric, multi-energy offer
Commercial and G&P: customer centric, multi-energy offer Net zero emissions 2050: Commercial and Gas & Power Commercial Gas & Power Customer centric and integrated energy offer 7.5 GW low carbon generation target by 2025 Actual installed capacity: ~ 3 GW Innovative products and services Renewable po
Slide 24: New business segments aligned with strategic vision
New business segments aligned with strategic vision Net zero emissions 2050 Upstream Industrial Commercial and Hydrocarbon Exploration • Refining Renewables and Production • Chemicals • Mobility • Trading • Lubricants • Wholesale & Gas trading • LPG • Repsol Peru • Gas & Power Yield & Focus Yield &
Slide 25: Upstream
REPSOL Upstream
Slide 26: 4 core regions in the portfolio
4 core regions in the portfolio Upstream North America Europe & Africa Unconventional portfolio, operatorship and High margin barrels, key development valuable midstream positions projects from exploration succes 182 kboe/d 121 kboe/d 72% 2018 23 % 2019 84% Production (kboe/d) 715 709 1% / 69% 1P Re
Slide 27: Exploration success in core areas
Exploration success in core areas Upstream Gulf of Mexico Alaska Colombia 6 discoveries in 2020 with • US: Monument (WR 272 block) • Mitquq and Stirrup positive • Positive results of the Lorito combined gross resources of • Mexico: Polok and Chinwol discoveries results well (CPO-9 block) (deepwater
Slide 28: Industrial
a IREPSOL Industrial
Slide 29: Top quartile position among European peers
Top quartile position among European peers Industrial: Refining 5 refineries optimized as a single system Top quartile position among European peers (1) CORUÑA % FCC Equivalent BILBAO 100% TARRAGONA 1Q 2Q 3Q 4Q 80% 60% PUERTOLLANO 40% CARTAGENA 20% 0% 0 2 4 6 8 10 12 14 Oil pipeline Repsol Oil pipel
Slide 30: Competitive positioning in Chemicals
Competitive positioning in Chemicals Industrial: Chemical Strong and Integrated position in Spain and Portugal High flexibility of feedstocks Feedstock to crackers – LPG´s (%) ~ 60% ~50% TARRAGONA 40% (3,050 kT/y) PUERTOLLANO Total Production Ref. Europe: 25 % SINES (650 kT/y) Capacity: (1,050 KT/y)
Slide 31: Commercial & Renewables
7 Commercial & Renewables
Slide 32: Multi-energy offer with ~3 GW installed capacity of clean energy
Multi-energy offer with ~3 GW installed capacity of clean energy Commercial and Renewables More than 4,900 service stations in 5 countries International expansion in Lubricants Repsol's market share Spain • Leadership in Spain • Customer-centric with 10 million customers and strong energy brand • Ex
Slide 33: Accelerated delivery of 2025 objectives in Low Carbon Generation
Accelerated delivery of 2025 objectives in Low Carbon Commercial and Renewables: Gas & Power ~700 MW Hydro Installed ~1,650 MW CCGT capacity + 600 MW Cogeneration ~3 GW WindFloat Atlantic: 5 MW Generation Delta: 335 MW PI: 255 MW Project Under pipeline Sigma: 204 MW development 1,400 MW CCGT ~2 GW V
Slide 34: Outlook 2020
—_ REPSOL Outlook 2020
Slide 35: Preserving the balance sheet and investment grade
Preserving the balance sheet and investment grade Outlook 2020 FY2020 Operating Production ~ 650 kboed • Value over volume. 630 Kboed without Libya metrics Ref. margin indicator ~ 4 $/bbl • Demanding macroeconomic environment Financial Net Debt (Dec’20) €4.2 B • Flat year-on-year outlook Dividend 1
Slide 36: Historic data book
9 Historic data book
Slide 37: Environment and Repsol group
Environment and Repsol group Historic data book MACRO ENVIRONMENT International References Unit 2017 2018 2019 Spreads vs. Brent ($/bbl) 2017 2018 2019 Brent ($/Bbl) 54.2 71.3 64.2 Maya - Brent [9.7] [10.6] [11.1] WTI ($/Bbl) 50.9 64,9 57.0 Ural - Brent [0.9] [1.1] [0.4] Henry Hub ($/MBtu) 3.1 3.1 2
Slide 38: Upstream
Upstream Historic data book Production Proven reserves Kboe/d Mboe 2017 2018 2019 2017 2018 2019 Main figures (M€) 2017 2018 2019 Europe 51 60 61 59 102 88 Adjusted Net Income 632 1,325 1,050 Latin America 348 342 333 1,490 1,419 1,196 EBIT 1,009 2,514 1,969 North America 174 175 182 504 535 619 EBI
Slide 39: Downstream
Downstream Historic data book Downstream Assets Refining capacity Refining (kbbl/d) Converson index (%) Businesss Unit 2017 2018 2019 Spain 896 63 Refining Bilbao (Petronor) 220 63 Distillation utilization Tarragona 186 44 Spain % 93.6 92.9 88 Coruña 120 66 Peru % 89.8 81.7 74.8 Puertollano 150 66 C
Slide 40: Investor Update
Investor Update May 8th, 2020 Repsol Investor Relations investorsrelations@repsol.com 39