Repsol Sa · BME:REP
Repsol Sa — Investor Presentation (December 2019)
47 slides from Repsol Sa's investor presentation, December 2019
Slide 1: Investor Update December 2019
Investor Update December 2019
Slide 2: Disclaimer
Disclaimer , REPSOL ALL RIGHTS ARE RESERVED REPSOL, S.A. 2019 Repsol, S.A. is the exclusive owner of this document. No part of this dacument may be reproduced [including photocopying), stored, duplicated, copied, distributed or introduced into a retrieval system of any nature or transmitted in any f
Slide 3: Delivering value growth through the cycle
Delivering value growth through the cycle i Company overview Strategic progress Upstream update Downstream & Low Carbon update Digitalization & efficiencies Financing Conclusions & key targets on On FW NY Historic data book
Slide 4: Company overview
ih . REPSOL Company overview
Slide 5: Shareholder base: retail and ESG-managed institutional
• 17% of retail shareholders 2 • ~30% of institutional shareholder base managed under ESG criteria
Slide 6: Strategy 2018-2020
Strategy 2018-2020 , Company overview REPSOL 1. Increasing shareholder returns © 2. Growing our portfolio profitably ii * 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 $50/bbl * Downstream
Slide 7: Strategic progress
Strategic progress
Slide 8: Solid 3Q19 & 9M19 cash generation in a challenging scenario
Solid 3Q19 & 9M19 cash generation in a challenging scenario ae Strategic progress Ranvot Brent Price (USD/Bbl) Refining Margin Indicator (USD/Bbl) 75.2 6 9 72.1 67 5.5 68.9 64.6 48 | af : L 3Q18 2919 3919 9M18 9m19 3Q18 2919 3919 9M18 9M19 Henry Hub (USD/MBtu) Exchange rate (USD/€) 1.19 1.16 1.12 1.
Slide 9: Strong Operating Cash Flow delivery
Strong Operating Cash Flow delivery a Strategic progress REPSOL OCF* 22% higher year on year in a challenging scenario Upstream: Value over volume. FCF BE <50$/Bbl ane 1 #22% 1 ane 1 Brent: 10% lower 3.4 2.4 9M18 9M19 9M18 9M19 Downstream: OCF 83% higher year on year Net Debt: +€1.4 Bn impact from t
Slide 10: ROACE and CAGR targets at $50/bbl Brent
At $50/bbl flat Brent CAGR: + 12% 1 ROACE 6% +3 % >9% >10% @ $60/bbl
Slide 11: Increasing shareholder remuneration and full buyback of scrip
Increasing shareholder remuneration and full buyback of scrip &, Strategic progress REPSOL Dividend per share based on disbursement year €/share 0.80“) uw @ Historic cash dividend = g @ Historic scrip dividend E=) > a = @ Scrip dividend + buybacks a 0.19 2017 2018 2019 2020 Buyback program in 2018:
Slide 12: Additional 5% share capital reduction
Additional 5% share capital reduction Strategic progress ¥ Self-funded plan at 50 dollars Brent = Y Increase shareholder remuneration to 1 €/share with scrip option and buyback v Increase Total Shareholder Return 5% Share capital reduction* Y Cancelation of treasury shares Y Disbursement > € 1B [at
Slide 13: Strategy towards achieving net zero emissions in 2050
Strategy towards achieving net zero emissions in 2050 Strategic progress 2018- 2020: Thriving in the energy transition Defining a global carbon intensity indicator: t CO,/GJ Supply energy (GJ) with the lowest possible emissions (CO,) Indicator a tco. Starting Point Company “business as usual” Carbon
Slide 14: Upstream update
ww REPSOL Upstream update
Slide 15: Core regions in the portfolio
Core regions in the portfolio Upstream Unconventional portfolio, operatorshipand valuable midstream positions 175 kboe/d 73% 79% Regional scale, exploration record and cultural fit KO 295 kboe/d 4 82% 18% / 42% Production (kboe/d) 2,355 » 2,34 1P Reserves (mbce) RRR (%] a rr) un + a4 Total productio
Slide 16: Progressing on our short-cycle projects
Progressing on our short-cycle projects Upstream Pipeline of Repsol’s short-cycle projects... DUVERNAY YME * In 2018 the redevelopment received the approval from local autharities. + Fast track development with FO in 2020 MARCELLUS * Low breakeven asset * Scale synergies; low cast replacement barrel
Slide 17: Improving Upstream returns with profitable growth
Improving Upstream returns with profitable growth Upstream Value for volume ---#2.6% ~ Production CAGR C value to \votume } Portfolio rotation with high-grading objectives: kboe/d + Increasing Norway position * Unconventional rationalization 2017 2018 2020 $0.7B CFFO per year 1.0 Revenues 0.3 OPEX 0
Slide 18: New opportunities: attractive pipeline in the Gulf of Mexico
New opportunities: attractive pipeline in the Gulf of Mexico Upstream Buckskin First Oil (June 14th 2019) Last example of Repsol development strategy - 79 $/bbl 3 é F 5 a 8 : Ho Bl $/bbL Hf : P| a 38 $/bbl 8 Jani6 sep-16 FID: Decl6 First Oil (Previous operator] co Key partner Llog aligned with Repso
Slide 19: New opportunities: Indonesia a value creation history
New opportunities: Indonesia a value creation history = Upstream Sakakemang: largest discovery in 18 years in Indonesia | Sakakemang| |B Exploration [5 Production * Repsol is located in the best spot to meet an increasing gas demand * Top explorers in Indonesia; existing remaining exploration portfo
Slide 20: Working on our 2020+ project pipeline
Working on our 2020+ project pipeline Upstream Mid and Long-term projects with attractive returns and phased developments Duvernay (Canada) + 10 wells were drilled in 2018. * Current focus on de-risking Ferrier East and expected FID is anticipated within the next 12 months <$50/bbL Alaska (US) +2 ap
Slide 21: Working on our 2020+ project pipeline: Accelerating Alaska
Working on our 2020+ project pipeline: Accelerating Alaska all Upstream Nanushuk path to success Huge interests in prolific formation PikKa Unit >s00 Mboe (2c) FID slated for mid-2020 Phase | FO in 2022 (30 Kboed) FFD in 2024 qi g Pikka East Expected FO 2025 Horseshoe west i Expected FO 2027 H ‘ Hor
Slide 22: Building strong exploration portfolio in core areas
Building strong exploration portfolio in core areas —¥ Upstream REPSOL Indonesia Norway Gulf of Mexico Guyana, Brazil Alaska * Sakakemang discovery, | - Telesto discovery in the * Blacktip discovery inthe USGoM | - exploration well in Kanuku block spudded in | . i at least 2 TCF of North Sea (12-28
Slide 23: Downstream & Low Carbon Update
Downstream & Low carbon Update
Slide 24: World-class position
World-class position —_ Downstream & Low Carbon cere > * High performing integrated and regional leader * 1 million bbl/d of refining capacity * Highly competitive EU 19 in Solomon NCM benchmark and fully invested for IMO? * Capability for more than 35% light feedstock (PGs) * Key positions in high
Slide 25: • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 26: Top quartile position among European peers
Top quartile position among European peers Downstream - Refining 5 refineries optimized as a single system BCORUNA Le iLgag « PUERTI anf? CARTAGENA Gil pipeline Repsol == Oil pipelines CLH Fully invested, well prepared to capture IMO effect Y Repsolhas the largest coking capacity in Europe (25% coki
Slide 27: IMO 2020 will change relative prices of crude oil and products
IMO 2020 will change relative prices of crude oil and products a Downstream - Refining IMO compliance is guaranteed... ..and brings a structural change 8 Total Bunkering business volumes 85% 4 3 2 of total fuel consumption is concentrated in only 1 25% of the vessels. Most owned by largest 25 compan
Slide 28: IMO: Repsol's Spanish refining system perfectly positioned
IMO: Repsol’s Spanish refining system perfectly positioned i Downstream - Refining ial REPSOL Repsol: Top European player in conversion Diesel-HSFO crack spread > 40$/BbL =—=Med Diesel Crack oo >40 $/bbl 09 e: Wood Mackenzie, Re 2020-2022: Reduce turnarounds Refining in Spain can operate without pro
Slide 29: Competitive positioning
Competitive positioning Downstream - Chemicals Iberian Peninsula petrochemical sites sol Joint Venture > > ail Tarragona coll, Production capacity (rhousand tons) ethylene la alll Propylene 64 eutadiene 18s ETBEMMTBE 0 a Poutenns Petrochemical sites Polyethylene os Poliypropylene 505 jate products 9
Slide 30: More than service stations
More than service stations Downstream- Commercial businesses Tae eileen 4.900 FUEL MARKET SHARE : > 5 0 expanding our Service Stations Countries SPAN 37 Zo (#1) ci 65 M Mobility business >1,000 ParrusaLD & Of [#2] ien ae M y roace -2O% Operated sites PerUPB% (#2) Loyalty cards Differentiation and WH
Slide 31: Low Carbon: Strengthening position as multi-energy supplier
Low Carbon [Strengthening Repsol’s position as a multi-energy supplier D wy it cad @ Low carbon generation Retail gas & power Operated business Focus on liberalized Profitable businesses Integrated business Customer centric Multi-energy supplier Synergistic position Enhancing capabilities F > , id a
Slide 32: Ambition to develop a new operated business
Ambition to develop a new operated business =, Low Carbon REPrOL Repsol is swapping a €5-6B exposure to a medium ... To an operated and synergistic position in low carbon businesses through GNF... carbon businesses Gas . Non-operated ; . Operated business with full synergies Natural ° Nosynergies ex
Slide 33: Roadmap to 2025
Roadmap to 2025 Low Carbon Top capability Roadmap Leverage our industrial self consumption as the largest gas consumer in Spain Create a successful wholesale gas business, ensuring a competitive gas supply Developing new business through gas flexibility Deliver a competitive gas offer for our future
Slide 34: Accelerated delivery of 2025 objectives in Low Carbon
Accelerated delivery of 2025 objectives in Low Carbon Low Carbon = @ _~ tag ——— sees . Navia @ Ss Developing a strong position in Spain pecs @ Petronor with 2.9 GW of installed capacity Aguayo £ Aguilar cw Exploring Ey Opportunities 6 Ea ] y Pipeline 2.7 \ ) Valdesolar | ( Se —_ \ Puertollano Instal
Slide 35: Digitalization & efficiencies
ww REPSOL Digitalization & EfFICIENCIeS
Slide 36: Digitalization and efficiency as levers for cash flow growth
Digitalization and efficiency as levers for cash flow growth Digitalization & efficiencies ny Upstream Better maintenance, reduction of logistics and decommissioning costs and initiatives in gas commercialization (ie Corporate Lower corporate costs =| Downstream Improving integrated margin, process
Slide 37: Digitalization and efficiency initiatives
Digitalization and efficiency initiatives Digitalization & efficiencies: Examples it Upstream = Industrial al. Marketing L Corporate * Integrated Operations Center (IOC) Integrated real-time control room identifying trends and anomalies over the medium term, improving safety, production and efficien
Slide 38: Financing
ww REPSOL FINBACING
Slide 39: Liquidity: cash, undrawn credit lines and term deposits
1.7 x Term deposits w/ immed.availab. * Undrawn Credit Lines Cash & Equivalents
Slide 40: Conclusions & Key targets
ww REPSOL Conclusions & Key targets
Slide 41: On track to deliver 2020 strategic objectives
On track to deliver 2020 strategic objectives Conclusions & key targets 1. Increasing shareholders returns © 2. Growing our portfolio profitability * Removing dilution associated to the scrip dividend . oe a and increasing our dividend in 2018 and 2019 Strong OCF generation: on track to deliver 2019
Slide 42: Key metrics to 2020 @ $50/Bbl Brent flat
Key metrics to 2020 @ $50/Bbl Brent flat Conclusions & key targets Production CFFO EPS 2.6% CAGR +€1.9B growth +€0.6/share growth CAGR_» Keoers ——~ 2.6% es a esha a = CAGR +12% CAGR +12% 750 695 4 So 6.5 2.0 2017 2020 2017 2020 2017 2020 +17% CAGR vs 2017 W/o 2017 GNF results Note: EPS considering A
Slide 43: Historic data book
Q 7 tam w--- Historic data D00K
Slide 44: Environment and Repsol group
Environment and Repsol group Historic data book MACRO ENVIRONMENT International References Unit 2016 2017 2018 Spreads vs. Brent ($/bl) 2016 «2017 2018 Brent (seb) 43.7 54.2 71.3 Maya - Brent fie) [97] fos) wT (ed) 43.5 50.9 84,9 Ural- Brent fz] fos} fal Henry Hub (smetu) 25 3.1 3.1 Gasoline - Brent
Slide 45: Upstream
Upstream Historic data book Production Proven reserves Kboe/d Mboe 2016 207 2018 «S06 20172018 Europe 52 51 60 62 59 12 Latin America 342 348 342 1,525 1,490 1419 North America 182 174 175 496 504 535 Africa 7 38 58 125 128 129 Asia 98 8 73 174 174 154 Total 6390 695 715 2,382 2,355 2,340 Realized p
Slide 46: Downstream
Downstream , Historic data book REPSOL Downstream Assets —Fermng capacity — Refining ree) Converson index (%) Businesss Unit 2016 2017 2018 ‘Spain 896 63 Refining Bilbaa (Petronar) 220 63 Distillation utilization Tarragona 186 4a Spain % 880 936 929 Corua 120 66 Pew % 689 898 817 Puertollano 150 66
Slide 47: Repsol Investor Relations
Investor Update December 2019 re Repsol Investor Re! eae =. ah ‘ome investorsrelations@repsol.com — *