Repsol Sa · BME:REP
Repsol Sa — Investor Presentation (November 2023)
46 slides from Repsol Sa's investor presentation, November 2023
Slide 1: Stepping up the Transition
Investor Stepping up the Transition Update Driving growth and value November 2023 1
Slide 2: Disclaimer
Disclaimer ALL RIGHTS ARE RESERVED ©REPSOL,S.A. 2023 This document contains information and statements that constitute forward-looking statements about Repsol. Such estimates or projections may include statements about current plans, objectives and expectations, including statements regarding trends
Slide 3: Multi-energy provider
Multi-energy provider 550 Kboe/d 4,899 Kt Petrochemical capacity (basic and derivative) Production in 2022 600 Kboe/d Expected in 2023 4,651 1,909 Mbep Services Stations in Spain, Portugal, Peru and Mexico Proved Reserves +1,000 Recharging points 24 M Clients +1 Mbbl/d 5.5 M digital Refining Capacit
Slide 4: Index
Index 01. Path to 2030 02. Strategy 2021-2025 03. Business strategies 04. Decarbonization: Metrics and targets 05. Delivery
Slide 5: Path to 2030
Path to 2030 01.
Slide 6: Ambitious transformation journey to thrive in Energy Transition
Ambitious transformation journey to thrive in Energy Transition De-carbonize New operating the portfolio Profitable Four verticals model FCF growth New partnerships Path to 2030 Advantaged Value transformation crystallization Towards Net Zero emissions Leading investor proposition 6
Slide 7: Decarbonization is an opportunity to build business platforms as technology evolves
Decarbonization is an opportunity to build business platforms as technology evolves 2025-2030 +2030 2020-2025 Advanced biofuels, biogas and recycling Industrial transformation Renewable hydrogen Synthetic fuels (e-fuels) Hybrid plants Renewable generation Stationary energy storage Low carbon power r
Slide 8: Repsol 2030: A more sustainable, balanced and profitable company
Repsol 2030: A more sustainable, balanced and profitable company Transforming the company's portfolio CE 2019 CE 2025 CE 2030 8% 7% 10% 5 % Low Carbon Retail 2% 12% 25% 34% 37% 35% 10 % Low Carbon Industrial 55% 44% 30% CE Total: €31 B 2030 Ambition Updated 2030 2% % Low Carbon Businesses 40%1 45% a
Slide 9: Strategy 2021-25
Strategy 2021-25: 02.
Slide 10: Delivering financial targets while transforming the company
Delivering financial targets while transforming the company Ambition 21-25 2021 - 2022 2023 - 2025 Ensuring strong Accelerating transformation and delivering performance and financial strength growth In an uncertain economic and commodities environment ‒ Efficiency & capital discipline ‒ Portfolio o
Slide 11: Self-financed plan
Self-financed plan Cash generation Cumulative sources and uses of cash, 2021-2025 (B€) 2021-2025 B-even post-dividends ($/bbl) Shares buyback Divestments1 29.4 29.4 & Optionalities 1.4 1.4 2.0 0.4 0.6 5.0 4.7 4.4 Dividends Financials2 $50/bbl 9.3 FCF BE Updated Capex 2021-20253 (inc. SBB) CFFO 12.6
Slide 12: Legacy and new businesses driving portfolio performance along the Transition
Legacy and new businesses driving portfolio performance along the Transition Contribution to portfolio financial profile 21-25 Capital Employed 2025 21-25 Capital Investment 1. Industrial includes Refining Spain and Peru R&M, Chemicals, Trading & Wholesale Gas businesses Note: Corporate values not c
Slide 13: Leading distribution and clear capital allocation framework
Leading distribution and clear capital allocation framework Capital allocation 21-25 Resilient shareholder remuneration Capital allocation priorities 2022 2023 2024 Capital 200 M shares1 50 M shares cancelled in July’23 New Strategic Update reduction 100% SBB expected in SP 60 M shares3 before year
Slide 14: Preserving strong financial structure
Preserving strong financial structure BBB+ Last affirmation Net debt1 evolution November 16, 2022 Stable Outlook €B BBB+ Last affirmation Stable Outlook June 1, 2023 5.8 Baa1 Last affirmation December 20, 2022 Stable Outlook 2.3 1.9 0.9 0.8 Dec 21 Dec 22 Mar 23 Jun 23 Sept 23 Solid investment grade
Slide 15: Business strategies
Business strategies 03.
Slide 16: Setting the new business priorities
Setting the new business priorities Upstream Industrial Customer Low Carbon Generation Yield and Focus Yield and New Platforms Yield and Transformation Business Build 16
Slide 17: Repsol E&P priorities 2021-25
Repsol E&P priorities 2021-25 1 FCF as a priority (Leading FCF B-even) 2 Resilient Value delivery 3 Focused portfolio 4 Tier 1 CO2 emissions − FCF breakeven <$40/bbl − Top leading project − Value over volume − Emissions intensity − Low capital intensity and profitability • Flexible production level
Slide 18: Focus portfolio and capex allocation: Playing to our core areas
Focus portfolio and capex allocation: Playing to our core areas Upstream Portfolio span reduction from >25 to <14 countries ambition Highly selective new exploration strategy Successful track record discovering additional resources Alaska Norway in productive basins recently UK ‒ Alaska North Slop
Slide 19: Progress in key projects to support future production
Progress in key projects to support future production Upstream Marcellus (USA) YME (NOR) [55%] • Project developed and producing • 2 phases approved in 2021-2022 Alaska Pikka (USA) [49%] • Phase 3 FID 2023e • FO achieved in 2021 • Phase 1 FID taken 2022 • FO in 2026e Shenzi (USA) [28%] • Shenzi Nort
Slide 20: Progressing in portfolio rationalization and FIDs
Progressing in portfolio rationalization and FIDs Upstream Portfolio rationalization FIDs 2022 - 2023 Canada Spain Divestment of oil and gas assets Cease of production Russia AROG JV v Karabashsky Eurotek- Yugra Karabashsky ASB Geo Pikka Unit (Alaska) Eagle Ford 3rd phase (US) 3Q22 3Q22 Cypre (T&T)
Slide 21: High grading portfolio supporting carbon intensity reduction
High grading portfolio supporting carbon intensity reduction Upstream Repsol to become tier 1 lowest carbon intensity High growth new barrels with lower with a 75% reduction of scope 1+2 emissions emission intensity Emissions reduction Emissions intensity per barrel produced (kgCO2/boe) New producti
Slide 22: EIG's acquisition of 25% Repsol Upstream equity stake for $3.4 B
EIG’s acquisition of 25% Repsol Upstream equity stake for $3.4 B Upstream: Value crystallization through partnerships Transaction structure Equity payment to Repsol Enterprise Value for Repsol Upstream of $19.0 B $3.4B • Net Financial Debt $5.6 B • $13.4 B resulting Equity value EIG’s acquisition of
Slide 23: Setting the new business priorities
Setting the new business priorities Upstream Industrial Customer Low Carbon Generation Yield and Focus Yield and New Platforms Yield and Transformation Business Build 23
Slide 24: Maximizing yield and developing the next wave of profitable growth
Maximizing yield and developing the next wave of profitable growth Industrial Strategy 2021-25 Refining1 Chemicals Trading ‒ ‒ ‒ 1 Net Cash Margin 1Q Solomon and Wood Mackenzie Differentiation with high value products Maximize the integration and value from assets Yield ‒ Advantaged position ‒ Growt
Slide 25: Transformation of our sites into multi-energy hubs
Transformation of our sites into multi-energy hubs Low Carbon Products Multi-energy hubs that fit into a more sustainable future 1.9 GWeq 2 Mton +20% Increased renewable H2 Low carbon fuels1 Recycled ambition by 2030 by 2030 polyolefins by 2030 +40% increased 2025 ambition to 1.3 Mton of low car
Slide 26: Ambition to become a leader in renewable H2 in the Iberian Peninsula
Ambition to become a leader in renewable H2 in the Iberian Peninsula Renewable Hydrogen Clear ambition1 to become Iberian leader Basque Electrolyzers Synthetic Fuels Corridor 2.5 Renewable H2 capacity under development [GWeq] (Bilbao) Elec. 1 MW 2023 10 Multi-production 2024 100 MW Gross technology
Slide 27: Repsol becoming an advantaged producer of low carbon fuels
Repsol becoming an advantaged producer of low carbon fuels Low carbon fuels Repsol best positioned for sustainable Reaching > 2 Mta of low carbon With a multi-technology and raw biofuels production fuels in 20301 material approach Low carbon fuels gross production (Mta) Use of wastes as feedstock Al
Slide 28: Transformation of our sites into multi-energy hubs
Transformation of our sites into multi-energy hubs New Low Carbon Business key projects Advanced Biofuels Plant in Cartagena E fuels Demo plant in Bilbao Ecoplanta in Tarragona New demo plant of synthetic fuels from CO2 and Urban Waste recovery by gasification (Enerkem technology) renewable hydrogen
Slide 29: Setting the new business priorities
Setting the new business priorities Upstream Industrial Customer Low Carbon Generation Yield and Focus Yield and New Platforms Yield and Transformation Business Build 29
Slide 30: Strong and growing profits and cash generation
Strong and growing profits and cash generation Customer Strategy 2021-25 Mobility leader in Key Longstanding Iberian continuous High-growth power foundations Energy Leader customer business transformation Multi-energy Cross-sell to current customers and channels, adding new services (E-Mobility, Ene
Slide 31: Building on our advantages
Building on our advantages Customer transformation A differentiated multi-energy customer centric view 8 Million +1,000 355 Mobility E-mobility Home Digital clients by 2025 Public PoR by 2022 in Solar communities by Biofuels & end of 2022 synthetic fuels Power & Gas Iberia Unique position to serve
Slide 32: Launching Repsol's Transversal Loyalty Program
Launching Repsol's Transversal Loyalty Program to orchestrate customer-centric multienergy approach across customer base Engage customers repsol.es >7 M customers >8 M as Oct 2023 customers Transversal by 2025 >10 M 2M loyalty Program >35 M >24 M Repsol customers Repsol registered Repsol digital Mob
Slide 33: Repsol to develop widespread, smart, conveniently-located charging network
Repsol to develop widespread, smart, conveniently-located charging network e-Mobility 2022 Ultra / Fast +1,000 chargers every public 50km chargers Committed to develop a charging network in Iberia focused in fast and ultrafast chargers in main transport corridors Connected Energies Innovative prog
Slide 34: Setting the new business priorities
Setting the new business priorities Upstream Industrial Customer Low Carbon Generation Yield and Focus Yield and New Platforms Yield and Transformation Business Build 34
Slide 35: Developing a competitive renewable player with international platforms
Developing a competitive renewable player with international platforms Low Carbon Generation 20 GW >10% Accelerating our ambitions from a sizeable, tangible and technologically and geographically diversified 2.3 GW In operation As of Sept 23 Increased Renewables Best-in-class Equity IRR pipeline of
Slide 36: Strong portfolio of advanced stage projects with short term material growth
Strong portfolio of advanced stage projects with short term material growth and robust profitability Spain Chile US Hydroelectric plants Delta I Capacity: 699 MWp Capacity: 335 MWp PI Technology: Technology: Additional pipeline Elena Capacity: 417 MWp Capacity: 964 MW1 Capacity: 270 MWp Antofagasta
Slide 37: EIP - Crédit Agricole acquisition of 25% Repsol Renovables equity stake for €0.9 B
EIP - Crédit Agricole acquisition of 25% Repsol Renovables equity stake for €0.9 B Value crystallization through partnerships Transaction Overview1 Equity payment to • Price implied valuing Repsol’s renewables business at €4.4 B, including debt Repsol • Partnership with reputable, experienced invest
Slide 38: Latest acquisitions help to de-risk 2025 and 2030 capacity addition targets
Latest acquisitions help to de-risk 2025 and 2030 capacity addition targets De-risking the ambition ASTERION ENERGIES CONNECTGEN Renewable developer with a multi-technology approach and full in-house development capabilities, especially in US onshore wind projects 7.7 OECD Countries 20 GW pipeli
Slide 39: Decarbonization Metrics and targets
Decarbonization Metrics and targets 04.
Slide 40: How to assess the climate credentials of energy companies?
How to assess the climate credentials of energy companies? Repsol’s set of key metrics and targets Carbon Intensity • 2025-2030-2040-2050 w/ scope 3 included • • GW renewable power generation capacity: 2025-2030 t/yr production of renewable liquid fuels: 2025-2030 Indicator reduction • Different agg
Slide 41: Climate change: Renewed decarbonization ambition
Climate change: Renewed decarbonization ambition Repsol decarbonization pathway Carbon Intensity Indicator reduction targets [gCO2/MJ] Absolute emissions reduction (%) Scope 1&2 operated emissions [Mt CO2eq] Scope 1,2&3 net emissions [Mt CO2eq] -55% -30% Net Absolute -100% Net 2016 2030 2050 2016 20
Slide 42: Delivery
Delivery 05.
Slide 43: Strategic progress underpinned by solid earnings and cash flow generation
Strategic progress underpinned by solid earnings and cash flow generation Key messages 3Q23 Robust quarterly results Higher O&G prices and stronger refining margins €1.1 B €1.3 B Cash impact of Maxus settlement and Spanish windfall tax Adjusted Income CFFO Working capital outflow of €0.9 B +33
Slide 44: Confirmed shareholder distributions for 2023. Dividend increase in Jan'2024
Confirmed shareholder distributions for 2023. Dividend increase in Jan’2024 Outlook 2023 Refining margin Sustained middle distillate spreads and 11 $/bbl lower energy costs indicator Upstream ~ 600 Kboe/d Avg. 600 Kboe/d YTD production 80 $/bbl Brent Cash Flow from > €7 B 2.7 $/Mbtu Henry Hub Operat
Slide 45: Progress towards 2025 and 2030 decarbonization targets
Progress towards 2025 and 2030 decarbonization targets Decarbonization delivery (SP 21-22) % reduction CII 2025 Scope 1+2 reduction (MtCO2e) 30 25.4 16% 15,0% 25 14% 20 12% 16.1 55% 9,6% 10% 36% Absolute 15 8% 11.4 6% 5,0% 5,0% 10 4% 2,5% 2,9% 5 100% 2% 1,1% Net Year of reference 0% 0 Real value 201
Slide 46: Stepping up the Transition
Investor Stepping up the Transition Update Driving growth and value November 2023 46