Repsol Sa · BME:REP

Repsol Sa — Q3 2016 Earnings Presentation

47 slides from Repsol Sa's earnings presentation, 2016

1. Slide 1: Investor Update 3Q 2016

   Investor Update 3Q 2016 Repsol Investor Relations

2. Slide 2: Disclaimer

   — REPSOL Disclaimer ALL RIGHTS ARE RESERVED REPSOL, S.A. 2016 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 f

3. Slide 3: 1. Company Overview 2. Key strategic lines 2016-2020 3. Progress of Strategic Plan

   1. Company Overview 2. Key strategic lines 2016-2020 3. Progress of Strategic Plan 4. Upstream 5. Downstream 6. Gas Natural Fenosa 7. Financial Outlook 8. 2016 Outlook

4. Slide 4: Company Overview

   Company Overview

5. Slide 5: 3Q16 key messages

   Company overview 3Q16 key messages   • •  • • •  • • 5

6. Slide 6: Repsol today - An integrated company operating across the entire value chain

   Company overview Repsol today - An integrated company operating across the entire value chain 6

7. Slide 7: Repsol's shareholders

   Company overview Repsol’s shareholders 10.05% 8.34% 4.87% 76.74% 19.65% 7

8. Slide 8: Key strategic lines 2016-2020

9. Slide 9: Value and resilience

   Key strategic lines 2016-2020 Value and resilence 9

10. Slide 10: Shift from growth to value

    Key strategic lines 2016-2020 Shift from growth to value // // kboepd 1,000 • 800 x2 • 600 400 200 • 0 2014 2016 2020 Portfolio 2020 organic management production 10

11. Slide 11: Additional Investment reduction for 2016 and 2017 around €1.8B

    Key strategic lines 2016-2020 Additional Investment reduction for 2016 and 2017 around €1.8B // Group annual Investment (1) // • • + • • (2) Upstream Downstream & Corporation 11

12. Slide 12: Strict accountability on Efficiency Program

    Key strategic lines 2016-2020 Strict accountability on Efficiency Program • • • • (*) 12

13. Slide 13: Synergies from Talisman integration are already being delivered

    Key strategic lines 2016-2020 Synergies from Talisman integration are already being delivered • • • • • 13

14. Slide 14: Breakevens

    Key strategic lines 2016-2020 Breakevens 14

15. Slide 15: Self-financed Strategic Plan even under the stress scenario

    Key strategic lines 2016-2020 Self-financed Strategic Plan even under the stress scenario • • •  • ̴ 15

16. Slide 16: Progress of Strategic Plan

17. Slide 17: Strategic Commitments Follow up

    Progress of Strategic Plan Strategic Commitments Follow up       (*)      17

18. Slide 18: Strategic Commitments Follow up

    Progress of Strategic Plan Strategic Commitments Follow up      18

19. Slide 19: Portfolio management

    Progress of Strategic Plan Portfolio management • • • • • • • • • • • • • • • 19

20. Slide 20: Upstream

21. Slide 21: Upstream core regions in the portfolio

    UPSTREAM 3 core regions in the portfolio • • • • • • • • • (*) 21

22. Slide 22: An extensive pipeline of organic opportunities

    UPSTREAM An extensive pipeline of organic opportunities • • • • • • • North America • Eagle Ford Marcellus • (USA) (USA) • WI: ~31% in basin WI: ~89% and 37% in JV Brazil Africa & Europe • Duvernay GoM / Sapinhoa MonArb / • Lapa Reggane (Canada) Mid-continent (former Guara) (former Carioca) (Algeria

23. Slide 23: Projects activity in 2016

    UPSTREAM Projects activity in 2016 23

24. Slide 24: Operational activity. Development projects

    UPSTREAM Operational activity. Development projects              24

25. Slide 25: Portfolio management: Flexibility to optimize capital allocation

    UPSTREAM Portfolio management: Flexibility to optimize capital allocation 25

26. Slide 26: Portfolio management: Capex

    UPSTREAM Portfolio management: Capex 26

27. Slide 27: E&P Cost Efficiency Program

    UPSTREAM E&P Cost Efficiency Program // Levers // €1.1 B/y • savings • • by 2018 • • • ~€0.6 B/y Capex • • • + • • ~€0.5 B/y Opex • • • 27

28. Slide 28: Examples of improvements in Talisman legacy assets

    UPSTREAM Examples of improvements in Talisman legacy assets • • • • • 28

29. Slide 29: Downstream

    Downstream -)

30. Slide 30: Sustainable cash flow generator

    DOWNSTREAM Sustainable cash flow generator  ̴           →     30

31. Slide 31: Downstream to provide sustainable value

    DOWNSTREAM Downstream to provide sustainable value • • • • • 31

32. Slide 32: Repsol's refining margin indicator evolution

    DOWNSTREAM Repsol’s refining margin indicator evolution Base Repsol Crack Index1 2005-2020 Repsol Refining margin index evolution ($/bbl) ($/bbl) 10 -28% 10 8.8 0.5 8 8 6.4(*) 4.0 6 6.6 6 0.7 4 3.0 4 Avg. 3.6 4.3 2 2.7 2 4.3 2.7 1.5 0 0 High margins Low margins 2015 2016-20 2015 Refining Margin Esti

33. Slide 33: Fundamentals support sustained Repsol refining margins

    DOWNSTREAM Fundamentals support sustained Repsol refining margins Lower Opex  Lower oil and gas prices Growing refined  Average demand growth of 1.2% for 2016-2020 on top of strong 2015 demand products demand  Spain fuels demand growth at 4% in 2015 European refineries at high  Lower EU effectiv

34. Slide 34: Downstream efficiency and margin improvement program

    DOWNSTREAM Downstream efficiency and margin improvement program ~ // Projects // // Levers // // EBIT increase by 2018 // • Energy cost reduction • Improved planning to increase crude supply flexibility ~€250 M/y • Operations optimization including fixed-cost reductions • Increased asphalt productio

35. Slide 35: 2016-2020 Downstream strategy

    DOWNSTREAM 2016-2020 Downstream strategy European Integrated Margin of R&M Average investments €B/y 2.0 1.5 1.0 D&A 0.5 0.0 Repsol position 35

36. Slide 36: Gas Natural Fenosa

    gasNatural ey fenosa Gas Natural Fenosa

37. Slide 37: Strong profitability with long term vision

    Gas Natural Fenosa Strong profitability with long term vision 20% of valuable stake in a leading gas & power company Stable dividend with growth potential (*) Strong profitability performance (well above wacc and not linked to oil price) Provides strategic optionality for stronger role of gas and re

38. Slide 38: Financial Outlook

    ror 4 Financial oUtLOOK

39. Slide 39: Financial Strategic Plan 2016-2020

    Financial outlook Financial Strategic Plan 2016-2020 Sound track record Resilient Plan with Conservative in managing adverse stronger business profile financial policy conditions 39

40. Slide 40: Business Resilience

    Financial outlook Business Resilience 3.6 3.6 2.4 2.3 1.4 1.4 -0,3 -0.2 Upstream Downstream Corporation & Repsol others 40

41. Slide 41: 9M2016 Net Debt evolution

    Financial outlook 9M2016 Net Debt evolution 41

42. Slide 42: Sources of liquidity as of 30th Sep 2016

    Financial outlook Sources of liquidity as of 30th Sep 2016 42

43. Slide 43: Strong liquidity coverage

    Financial outlook Strong liquidity coverage 1.9 x 7.9 Operating committed Credit Lines Structural committed Credit Lines Cash & Equivalents 1 1 43

44. Slide 44: Delivery of Commitments

    Financial outlook Delivery of Commitments • • • • • • • 44

45. Slide 45: 2016 Outlook

46. Slide 46: 2016 Outlook

    > 2016 Outlook REPSOL v Divestment program progressing ahead of schedule, transactions worth ~€5 billion announced since start of strategic plan. v Efficiency and Synergy project set to deliver €1.4 billion in benefits in 2016. v_ Savings are being delivered faster than originally expected v¥ Ontrac

47. Slide 47: Repsol Investor Relations

    Investor Update 3Q 2016 Repsol Investor Relations

Repsol — Q3 2016 Earnings Presentation on 6ix