Repsol Sa · BME:REP
Repsol Sa — ESG Presentation (October 2015)
49 slides from Repsol Sa's sustainability presentation, October 2015
Slide 1: Growing from our strengths in a sustainable way
Repsol Growing from our strengths in a sustainable way October, 2015
Slide 2: Disclaimer
Disclaimer ALL RIGHTS ARE RESERVED © REPSOL, S.A. 2015 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 • Talisman Acquisition • Vision, Values and Strategies • Repsol Today 2. Main challenges in Repsol 3. Our commitments with sustainability 4. Sustainability plans 5. Corporate Governance 6. Annexes Repsol S.A.EM Division of Economy, Finance and Development. 03/09/2015 © 3
Slide 4: Company Overview
Company Overview 1 4
Slide 5: Talisman Acquisition: Strategic Rationale
1. Company Overview:Talisman Acquisition Talisman Strategic Rationale Acquisition Maximize Downstream Financial strength profitability Growing from our strengths (2012-2016) Growth Competitive High growth Diversification Talisman shareholder in Upstream Acquisition Value Creation compensation A tran
Slide 6: Talisman Acquisition: Strategic Rationale
1. Company Overview:Talisman Acquisition Talisman Strategic Rationale Acquisition Operated Production OECD Production + 23 + 25 p.p. p.p. 21% 44% 11% 36% Repsol Repsol + Talisman Repsol Repsol + Talisman Increase in operated assets and OECD production ~27,600 ~24,500 employees employees Nr. Employee
Slide 7: Talisman Acquisition: The New Repsol
1. Company Overview:Talisman Acquisition Talisman The New Repsol Acquisition World class explorer Experienced operator Deepwater exploration experience Unconventionals experience Strong Focus on LatAm Focus on North America and South East Asia Growth in Exploration and Development Assets and conting
Slide 8: Vision, Values & Strategy
1. Company Overview: Vision, Values & Strategy Vision,Values & Strategic Guidelines Strategy o Optimization & Efficiency o Maximizing integration PERFORMING BUSSINESS Profitability SHAREHOLDER RETURN PORTFOLIO MANAGEMENT Sustainability o Attractive value proposal o Reinforcing Upstream business Enha
Slide 9: Repsol Today
1. Company Overview: Repsol Today 1 million boe/d 4,700 service refining capacity stations Norway Canada Russia UK Ireland Netherlands Romania Spain Italy Portugal Bulgaria USA Morocco Algeria ~ 27,000 ~ 2.2 Billion boe Libya employees proven reserves Trinidad & Tobago Vietnam Aruba Venezuela Iraq M
Slide 10: Main Challenges in Repsol
Main Challenges in Repsol 2 10
Slide 11: Main challenges in Repsol: Indigenous communities
2. Main challenges in Repsol Indigenous communities in Bolivia, Perú, Ecuador, Alaska and Colombia Defined policies and procedures Internal Guidance for due diligence processes and grievance mechanisms Non-contacted indigenous tribes procedures First O&G company operating in Latin America
Slide 12: Main challenges: Deepwater offshore and political risk
2. Main challenges in Repsol Offshore deepwater safety • Members of: Oil Spill Response (OSR), Joint Industry Project (JIP) of IPIECA 1 Deepwater and OGP 2, and Global Well Containment Response Strategy Offshore • Emergency response in place • Strict asset integrity procedures Brazil, GoM, Africa,
Slide 13: Main challenges: Arctic and shale
2. Main challenges in Repsol Arctic operations • Norway/Barents Sea: Not qualified as arctic operations. North-sea-type operations • Alaska North Slope: onshore activity Arctic • Russia: onshore activity • Alaska Chukchi Sea: We will not carry forward any operation • Beaufort Sea: no operations in
Slide 14: Our commitments with Sustainability
Our commitments with Sustainability 3 14
Slide 15: Our commitments with sustainability
3. Our commitments with sustainability Zero Accidents Embedded safety culture Strict asset integrity procedures Commitment to safety Excellence in spill Policy on respect for prevention and response human rights based on the Optimized water&waste UN Guiding Principles on management Busin
Slide 16: Commitment to safety: zero accidents
3. Our commitments with sustainability Commitment to safety Our objective: zero accidents Sistematic Risk Management Zero fatalities since 2013 Proper management of our facilities risks from design to abandonment Operations control through work permits and identification of critical elements
Slide 17: Commitment to safety: embedded safety culture
3. Our commitments with sustainability Commitment to safety Our objective : Embedded safety culture Target: “Changing the culture of Safety and Environment through the people leading the organization, whose behavior should serve as an example for all the employees” •HSE leadership Plan defined and 2
Slide 18: Excellence in environmental management: spill prevention
3. Our commitments with sustainability Excellence in environmental management Our objective : zero spills Various measures have been implemented to prevent accidental spills, both in the upstream and downstream divisions: o Reviewed procedures Excellence in spill o Improved management systems prev
Slide 19: Environmental management: emergency response
3. Our commitments with sustainability Excellence in environmental management 2015 Achievements o Finalized and Distributed the Incident Management Handbook o Signed Contract with Oil Spill Response Limited (OSRL) for Global Dispersants Stockpile Emergency o Repsol-Talisman Global Emergency Respon
Slide 20: Environmental management: water management
3. Our commitments with sustainability Excellence in environmental management Our objective: Application of best practices for water management NEW APPROACH: Water as a strategic resource Strengthening local management with a global and homogeneous vision Application of standards and best practices
Slide 21: Environmental management: waste reduction
3. Our commitments with sustainability Excellence in environmental management Our new objective: reduce waste by 50 kt by 2020 Initial objective of 14,5 kilotons waste reduction comfortably outstripped by the company in 2014: a waste reduction of 29 kilotons has been already achieved • Waste reducti
Slide 22: Environmental management: biodiversity action plans
3. Our commitments with sustainability Excellence in environmental management Our objective : biodiversity action plans implemented on all sensitive areas Threats to biodiversity in all of our assets and upstream projects have been evaluated: • Definition of risk indicators for biodiversity • BAP1 s
Slide 23: Promoting a low carbon strategy
3. Our commitments with sustainability Promoting a low carbon strategy Transport electrification Biofuels • Repsol helps to reduce CO2 emissions through the use of • IBIL (50% owned by Repsol Nuevas Energías) first biofuels, including bioethanol in gasolines and biodiesel and recharging operator for
Slide 24: Low carbon: reduce 1.9 million tons of CO2 by 2020
3. Our commitments with sustainability Promoting a low carbon strategy Our objective : to reduce 1,9 million tons of CO2 by 2020 Achievement of our 2006-2013 target to reduce CO2 emissions by 2.5 million tons. The company comfortably outstripped the objective met in 2012, attaining a final reduction
Slide 25: Non-fossil fuel energy initiatives
3. Our commitments with sustainability Promoting a low carbon strategy Non-fossil fuel energy initiatives Mainly Offshore Wind Energy projects Taking part in the project of Principle Power Inc. (PPI). First company in the world able to design, install and operate a floating semi-submerged struct
Slide 26: Our position on Climate Change
3. Our commitments with sustainability Our position on Climate Change In Repsol we believe that two global goals have to be pursued: To mitigate climate change and To provide access to affordable energy in order to support economic growth and development We set up and deploy ambitious energy
Slide 27: Our view on Stranded assets
3. Our commitments with sustainability Our view on Stranded assets Repsol collaborates pro-actively as a member of the Climate Change Working Group of IPIECA (the global oil and gas association for environmental and social issues) Concerning the concept of stranded assets we would like to highligh
Slide 28: Anti corruption / Ethical conduct
3. Our commitments with sustainability Anti corruption/ Ethical conduct Repsol is committed to fighting against corruption in all its forms and establishing mechanisms to prevent corrupt or fraudulent activities Ethics and Conduct On line training available to employees Regulation Channels in pl
Slide 29: Transparency
3. Our commitments with sustainability Transparency Transparency is a key value for Repsol and a guarantee of the company’s ethical performance, its commitment to ensuring that all financial and non-financial information is complete and accurate, and its willingness to engage in dialogue with all st
Slide 30: Respect for Human Rights
3. Our commitments with sustainability Respect for Human Rigths Policy on respect Based on the UN Guiding Principles on Business and for human rights Human Rights Development of internal guidance Due diligence processes for Grievance Mechanisms By year-end 2014, the number of people to have
Slide 31: Sustainability Plans
Sustainability Plans 4 31
Slide 32: Sustainability plans: Influence Area and Operations
4. Sustainability plans Influence Area Operations Added complexity Climate change Global Stakeholders Human rights Supply chain How to widen the view? How to include all stakeholders? How to involve the whole organization? 32
Slide 33: CSR Model
4. Sustainability plans CSR Model Stakeholders’ Aligning performance to List of actions: expectations on Repsol expectations Sustainability plans CSR Committees: Include multidisciplinary executive members which make decisions on the actions to close the gap with expectations which compose the susta
Slide 34: Sustainability plans: Progress
4. Sustainability plans Progress Nº of committees 16 574 693 800 Nº of actions 14 427 700 12 600 10 500 8 400 278 6 61 300 4 200 2 100 0 5 5 13 15 15 0 2011 2012 2013 2014 2015 Actions are related to closing the gap in a variety of topics: Sustainability plans approved in the year – 2015 Nº of Actio
Slide 35: Corporate Governance
Corporate Governance 5 35
Slide 36: Shareholder structure
5. Corporate Governance Shareholder structure 11.72 %11,51% (*) 8.89 % 8,73% Caixabank S.A. 6.03 % 5,92% Institutional Sacyr Vallehermoso, S.A. Free Float 58.48 % Temasek Retail Investor 14,64% 73,84% Free Float Institutional Free Float: 59,20% Total number of shares: 1,400.36 million (*) On 11th No
Slide 37: Board of Directors
5. 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. Directors may not hold more Repsol currently has no than 4 mandates in other overboarded Directors
Slide 38: Board of Directors: Separated CEO/Chairman, Diversity
5. Corporate Governance Board of Directors Separated CEO/Non Executive Chairman, Diversity and Transparency The roles of the CEO and Chairman have been separated as of April 30, 2014 with the appointment of Mr. Josu Jon Imaz as CEO. In 2015, the Company has continued implementation of this progr
Slide 39: Annexes
Annexes 6 39
Slide 40: Main KPI Evolution: Social Indicators
Annexes Main KPI Evolution Social Indicators 2012 2013 2014 1 Repsol personnel (number) 23.995 24.214 24.460 Number of fatalities 4 0 0 Personnel covered by collective agreement (percentage) 57 57 56 Female staff (percentage) 32 32 33 Women in management posts (percentage) 15 15 15 Women on the Boar
Slide 41: Main KPI Evolution: Environmental Indicators
Annexes Main KPI Evolution Enviromental Indicators 2012 2013 2014 Spills > 1 barrel Number of spills that reach the environment 29 14 17 Volume of hydrocarbon spills that reach the environment (tons) 6.091 15 316 1 Energy and Carbon Management 2 Energy consumption (106 GJ) 178,5 176,8 178,4 3 Direct
Slide 42: Safety indicators
Annexes Safety indicators Lost time injury frequency Total recordable injury frequency Own Employees rate Contractors Employees rate Combined 4 3,5 0,91 0,85 3 0,59 2,5 2 1,5 1 0,5 3,39 2,59 2,38 1 0,84 0,6 0,55 0,92 0,78 0 2012 2013 2014 2012 2013 2014 Zero Fatalities in 2014 Main OHSAS 18001 c
Slide 43: Excellence in environmental management: spills
Annexes Excelence in Enviromental management Our objective : zero spills Number of Hydrocarbon Spills (1) 35 30 25 20 15 10 5 29 14 17 0 2012 2013 2014 (1) Includes spills in excess of one barrel that reach the environment (either the water or land on which we perform our operations) 43
Slide 44: Repsol 2Q and 1H 2015 results
Annexes Repsol 2Q and 1H 2015 results (*) (Unaudited figures) % Change January - January - % Change Results (€ Million) Q2 2014 Q1 2015 Q2 2015 Q2 15/Q2 14 June 2014 June 2015 2015/2014 Upstream 145 (190) (48) - 400 (238) - Downstream 162 534 439 171.0 452 973 115.3 Gas Natural Fenosa 159 122 105 (3
Slide 45: Repsol 2Q and 1H 2015 results: economic and operational data
Annexes Repsol 2Q and 1H 2015 results (*) (Unaudited figures) % Change January - January - % Change Economic data (€ Million) Q2 2014 Q1 2015 Q2 2015 Q2 15/Q2 14 June 2014 June 2015 2015/2014 EBITDA 1,025 962 1,421 38.6 2,202 2,383 8.2 EBITDA CCS 1,018 1,174 1,297 27.4 2,283 2,471 8.2 NET CAPITAL EX
Slide 46: Main Sustainability Indexes and Initiatives
Annexes Main Sustainability Indexes and Initiatives Repsol has led the Oil & Gas sector for two consecutive years, in the 2011 and 2012 editions of the prestigious Dow Jones Sustainability Indexes. The company also leads the Oil & Gas sector on the European index (DJSI Europe). 46
Slide 47: Main Sustainability Indexes and Initiatives: CDLI
Annexes Main Sustainability Indexes and Initiatives Repsol is the leading oil and gas company in 2012 for carbon management, according to the Climate Disclosure Leadership Index (CDLI), comprising the top 50 international companies in communication and transparency on climate change 2009 2010 2011 2
Slide 48: Thank you
Repsol Contact details: • Ms. Victoria Velasquez, Deputy Director Investor Relations- ESG vvelasquezo@repsol.com +34 91 7534474 • Ms. Leticia Padura, Investor Relations Officer lpadurafn@repsol.com +34 91 7535988 THANK YOU © Repsol S.A.EM Division of Economy, Finance and Development. 03/09/2015
Slide 49: Repsol
Repsol Growing from our strengths in a sustainable way October, 2015