Repsol Sa · BME:REP
Repsol Sa — Investor Presentation (April 2015)
48 slides from Repsol Sa's investor presentation, April 2015
Slide 1: Investor Update Strategic Plan 2012-2016
Investor Update Strategic Plan 2012-2016 “Growing from our strengths” Repsol. Investor Relations April 2015
Slide 2: Disclaimer
Disclaimer 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 by any means without the prior written permi
Slide 3: Index
1. 2. 3. 4. 5. 6. 7. 8. 9. eH o Company Overview Repsol: A Transformation Story Acquisition of Talisman Energy Upstream Downstream Gas Natural Fenosa Financial Position Environmental, Social & Governance Summary Annex INDEX
Slide 4: Company Overview
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Slide 5: Core Businesses: Upstream, Downstream
Russia Core Businesses Non Operated Shareholding Upstream Downstream Gas Natural Fenosa ©
Slide 6: Repsol's Shareholders
Repsol’s Shareholders REPSOL Company Overview mw Caixabank m Sacyr m Temasek m Free Float 12 % Retail Total number of shares as of April 2015: 1,374.69 million * On 11" November 2013 CaixaBank launched a €594m 3-year Mandatory Exchangeable Bond into Repsol shares (2.5% of share capital) © 6
Slide 7: Repsol: A Transformation Story
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Slide 8: 2012-2016 Key strategic targets
silly 2012-2016 Key strategic targets REPSOL Repsol: A Transformation Story r " Production growth 2011-164): > 7% = Strong FCF from the Downstream CAGRU Business ® RARE 2011-2016: > 120% [+120% vs. average 2008-2011) = Downstream average capex: = Upstream average capex: High growth €0.7bn/year (-50%
Slide 9: Key project start-ups
FID [1] Start up © Upstream Downstream GNL
Slide 10: Acquisition of Talisman Energy
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Slide 11: Talisman: A major Canadian listed upstream company
Talisman: A major Canadian listed upstream company with a globally diversified portfolio Q) Dual-listed E&P company with core assets in North America, the Asia Pacific region, Colombia and Northern Europe Headquartered in Calgary, Alberta, Canada Approximately 2,800 highly trained employees in 18 co
Slide 12: Transaction Overview
i. Transaction Overview REPSOL @ Repsol S.A. (“Repsol”) to acquire 100% of Talisman Energy Inc. (“Talisman”) outstanding! 1 . 1 Transaction | common shares structure | ' 1 @Structured as Planof Arrangement age ne nena neneneneeenetenenenetalehetetetatenetetetetenetetatenetetatetenetetetatetetstetqne
Slide 13: Strategic Rationale
Strategic Rationale oll REPSOL Strategic Rationale Value Diversification : creation Transformational deal, upgrading Repsol's portfolio and competitive advantage achieving global scale and diversification, greater exposure to Upstream, leading growth platforms and enhanced capabilities to create val
Slide 14: Production, Reserves, Operatorship, OECD
Production, Reserves, Operatorship, OECD le > production REPSOL Operated production [%) 7 poy ie 1 55% t--| eo --/23p.p.----) ween ! I fonneeee v 1 i 42% Q, 1P 2P 1P 2P UWE Before Deal After Deal Before Deal After Deal Production 2014E (Kboepd) OECD production (%) Before Deal After Deal Before Deal
Slide 15: Significant enhancement of upstream geographic diversification
Significant enhancement of Repsol’s upstream = business geographic diversification REPSOL — | —_ TALISMAN + —& N ER GY REPSOL REPSOL Capital Whole 38% Employed in from Company 30% Upstream 45% 58% 38% to 58% Hl Upstream [ij Downstream [ij cnr CE: ~36 BS CE: ~52 BS Upstream Division Capital Employed
Slide 16: Complementary capabilities
Adds new plays, skills & technology Se Complementary capabilities REPSOL — TALISMAN REPSOL EN ER GY = Experienced production operator - Unconventional experience and portfolio Broad international portfolio with strong focus on North America and South East Asia = Great legacy assets and contingent re
Slide 17: Portfolio management: opportunities to optimize capital allocation
© conservative estimate Portfolio management: Opportunities to &, optimize capital allocation REPSOL A broader portfolio together with a sound financial position provides a better capacity to create and unlock value through portfolio management, allocating capital to the most valuable projects and a
Slide 18: A strategic combination to accelerate growth
A strategic combination to accelerate growth, —<@% diversify asset base and drive shareholder value rerron y, Talisman acquisition consistent with Repsol strategy to strengthen Repsol’s upstream business while providing a platform for future growth JY Creating Value: IRR above WACC JY ) Creates a tr
Slide 19: Competitive multiples for Repsol
The transaction offers competitive multiples for Repsol, especially REPFO# considering the long term value of the asset | | Price and Trading Multiples ae EV/EBITDA 2015E (x)? EV/2013 1P & 2P reserves ($/boe) 2 5 15 4 12 3 9 4 2 6 4 1 34 o | Oo; Talisman at US$ 8 Talisman at US$ 5 Talisman at US$ 8
Slide 20: Net debt pro forma post Talisman deal
all Net debt proforma post Talisman deal cl ope . . . REPSOL Resilient credit metrics under stress scenarios Net Debt Estimated Post Deal!) Net Debt & / EBITDA [x] & 4) 23 (€bn) 68 12.8 19 . 4] 19 hl , : . . . , Repsol Net Debt 31 Talisman Net Debt Purchase Price Estimated Net 2014 2015 2016 2017 De
Slide 21: Upstream
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Slide 22: Countries with drilling activity during 2014
Countries with drilling activity during 2014 REPSOL 34 wells finalized in 2014 i Mauritania “« Offshore Liberia Colombia ; Angola, Bolivia Brazil ibi [onan nanan nanan oy Namibia 1 = 12 wells witha i ‘ gee result in 2014 | Reserve Reolacement Ratio f | Operated 1 | Operated & non operated Non operat
Slide 23: Focus on Exploration
Setting the basis for the new waves of growth — Focus on Exploration REPSOL 2015 exploration strategy based on lower risk than in previous years. Reserve Replacement Ratio Exploration Capex : THREE YEAR ROLLING AVERAGE : 2015 (E) USD 1.2bn/year 2015 (E) trying to reduce high risk exploration: RRR: 1
Slide 24: Growth projects
Russia AROG • (Russia) – 6 50 Kboed – WI: 49% USA - FO: 2012 – – Mid-continent Capex 12-16: €0.4bn (USA) – 3 20 Kboed(1) – net production(1) - – FO: 2012 – Africa & Europe Capex 12-16: €2.3bn Reggane Lubina-Montanazo – 4 (Algeria) 5 (Spain) • Brazil 48 Kboed WI: 29.25% 5 Kboed WI: 100-75% – Sapi
Slide 25: Delivering Growth
Targets REPSOL Delivering Growth CAGRY) >7% 2012-2016 Reserve Replacement Ra In 2014 average production [ 2013: 346 kboed RRR 2014 198% growth of 2.5%. With Libya at : : 2014: 355 kboed Reserves 2014 1,539 Mboe normal levels, 8% increase in production ' Contingent Resources 2013 2.1Bn boe ' Continge
Slide 26: Downstream
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Slide 27: Improve profitability on operational excellence and efficiency
silly Improve profitability on operational excellence eo and efficiency Maximize return on investment and cash generation 1 ™ Reduce energy costs | O Fuel consumption & losses down by 6% at | 2016 | ™ Reduce CO; emissions by 15% at 2016 ™ Operational excellence program in refineries ! = Maximize val
Slide 28: Downstream strategy 2010-2014
silly hw ae Downstream strategy 2010-2014: REPSOL Increased competitiveness of Downstream business Competitive Downstream business, linked to quality assets and geographical situation Integrated R&M margin (Repsol vs. Sector) ™ Presence in a premium market for refining Completion of expansion and co
Slide 29: Improved competitiveness of refining assets
Downstream strategy 2010-2014: Increased competitiveness of Downstream business Improved competitiveness of refining assets Oil pipeline Repsol == Gil pipelines CLH a CORUNA _@ BILBAO TARRAGONA CARTAGENA ™ Increased competitiveness of refining assets ™ Top quartile position among European peers alon
Slide 30: Maximizing returns and capital discipline
silly Maximizing returns from the business and REPSOL capital discipline R&M EBITDA CCS R&M CAPEX €bn/year €bn/year 4 4. 3 —e* -7 30 uc uc uc - - - - “7 al 1 Po TE eee eee eee > () 0+ it} } 7 , 2014 2015E Higher margins largely derived from Downstream investment cycle H expansion and conversion proj
Slide 31: Gas & Power
i. Gas & Power REPSOL Access to premium markets in North America ™ Highly seasonal business ™ Regasification facility and midstream assets with ! access to premium markets in North East USA H 1 ™ Trading activity based in our Houston headquarters H EBITDA 9M14: 238 ME Regasification plant Canaport L
Slide 32: Gas Natural Fenosa
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Slide 33: Gas Natural Fenosa
i. GAS NATURAL FENOSA REPSOL A liquid asset, with growth capabilities and a strong cash flow generator Strong LatAm footprint, growth and strong cash generation An European leading utility company with a strong footprint and Leading Utility growth in Latin America Dividend Yield Strong cash stream f
Slide 34: Financial Position
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Slide 35: Financial Position
© silly oe e e e —_ Financial Position REPSOL Financial Discipline: self-financed strategic plan High Liquidity Sound Financial Position € 9.844 bn | 2013 | 4Q14 Liquidity Short term maturities Ml Cash and equivalents Ml = Undrawn credit lines Note: liquidity position as of Decernber 31%* 2014. 35
Slide 36: Commitments with Investment Grade
silly . . > Commitments with Investment Grade REPSOL Hybrid bonds In order to reinforce Repsol’s capital structure and support an investment grade rating Repsol will issue up to €5bn of hybrid bonds“), non-dilutive for equity investors, in several tranches: > 18 of April, Issuances for a total amoun
Slide 37: Credit rating agency reports
´ ´ Moody´s, 19 December 2014 Standard & Poors, 18 December 2014 Fitch, 22 December 2014 ´
Slide 38: Focus on Rating and Liquidity
Focus on Rating and Liquidity Commitment to investment grade rating Liquidity above investment needs for Talisman L FY 2014 results © — REPSOL Strong track record of prudent financial policy, with a clear focus to strengthen Repsol’s capital structure: = Financial actions post YPF expropriation = Si
Slide 39: Repsol in figures: Shareholder remuneration
2. Repsol in figures REPSOL Shareholder remuneration “2015 maintaining our competitive shareholder remuneration at current levels with the scrip option” €2,50 5 Dividend Yield (DY) ™ = (Gross Dividend during Year / closing price at the end of the period) #13% coo | (DY) #13% €150 4 o e1on [DY] +5.7%
Slide 40: Environmental, Social & Governance
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Slide 41: Corporate Responsibility Model
silly y Corporate Responsibility Model REPSOL Our commitments Y Zero Accidents v¥ Embedded safety culture Commitment to — - v Excellence in spill prevention v Policy on respect for human safety q and response fights based on the UN Guiding YO Y Optimized water&waste Principles on Business and manage
Slide 42: Monitoring and control of the sustainability indexes
silly a Monitoring and control of the sustainability REPSOL indexes The consistency and commitment of our work has led to recognition of the company's firm commitment to continually improving its performance. Dow Jones 7) TEP Sustainability Indices ] In Collaboration with RobecoSAM «@® )~=©=9 FT SEA
Slide 43: Summary
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Slide 44: Summary
) aw Summary REPSOL Repsol has achieved all 2012-2016 strategic goals. YPF’s monetization allows Repsol to inorganically accelerate further growth in the upstream, further diversification in the asset base and further shareholder value. = Balancing our capital employed: ™ Upstream as growth engine ™
Slide 45: Annex
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Slide 46: Repsol in figures
© Repsol in figures 2. REPSOL (Unaudited figures) January - January - Results (€ Million) 4Q 2013 4Q.2014 joayaens —— — ee Upstream 162 185 4 (39.9) Downstream 21 190 370 - 479 1,012 111.3 Gas Natural Fenosa 99 92 67 (32.3) 458 441 (3.7) Corporate and others (159) (52) (71) 55.3 (574) (335) 41.6 ADJ
Slide 47: Market capitalization
As of April 8th 2015 MARKET CAPITALIZATION 23,658 ©
Slide 48: Strategic Plan 2012-2016
Investor Update Strategic Plan 2012-2016 “Growing from our strengths” Repsol. Investor Relations April 2015