Repsol Sa · BME:REP

Repsol Sa — Investor Presentation (May 2023)

46 slides from Repsol Sa's investor presentation, May 2023

1. Slide 1: Stepping up the Transition

   Investor Stepping up the Transition Update Driving growth and value May 2023 1

2. 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

3. Slide 3: Multi-energy provider

   Multi-energy provider 4,899 Kt Petrochemical capacity (basic and derivative) 550 Kboe/d Production 1,909 Mbep 4,651 Proved Reserves Services Stations in Spain, Portugal, Peru and Mexico +1,000 24 M Recharging points Clients 5.5 M digital +1 Mbbl/d Refining Capacity 1.5 M in gas and power 3,870 MW 1,

4. Slide 4: Index

   Index 01. Path to 2030 02. Strategy 2021-2025 03. Business strategies 04. Decarbonization: Metrics and targets 05. Delivery

5. Slide 5: Path to 2030

   Path to 2030 01.

6. 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

7. 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

8. 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

9. Slide 9: Strategy 2021-25

   Strategy 2021-25: 02.

10. 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

11. Slide 11: Self-financed plan: cash generation

    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

12. 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

13. 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 Capital 200 M shares1 50 M shares4 before end July’23 reduction 100% SBB expected in SP Expected additional SBB5 later in 2023 If Price deck

14. 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 Positive Outlook October 11, 2022 5.8 Baa1 Last affirmation December 20, 2022 Stable Outlook 2.3 0.9 Dec 2021 Dec 2022 Mar 2023 Solid investment grade supported by

15. Slide 15: Business strategies

    Business strategies 03.

16. 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

17. 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

18. 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 Canada UK ‒ Alaska Nor

19. Slide 19: Progress in key projects to support future production

    Progress in key projects to support future production Upstream YME (NOR) [55%] Marcellus (USA) • Project developed and producing • 2 phases approved in 2021-2022 Alaska Pikka (USA) [49%] • FO achieved in 2021 • Phase 3 FID 2023e • Phase 1 FID taken 2022 • FO in 2026e Shenzi (USA) [28%] • Shenzi Nort

20. Slide 20: Progressing in portfolio rationalization and FIDs

    Progressing in portfolio rationalization and FIDs Upstream Portfolio rationalization FIDs 2022 Canada Spain Divestment of oil 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) Leon/Castile (G

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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

30. 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

31. 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

32. 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 6M customers >8 M as March 2023 customers Transversal by 2025 >35 M >24 M >10 M 2M loyalty Program Repsol registered Repsol digital Mobility ‒ Integrate

33. Slide 33: Repsol to develop widespread, smart, conveniently-located charging network

    Repsol to develop widespread, smart, conveniently-located charging network e-Mobility Ultra / Fast +1,000 2022 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

34. 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

35. 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 1.9 GW In operation Increased Renewables Best-in-class Equity IRR pipeline of renewable proj

36. 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 (2 plants) Technology: Technology: Additional pipeline Elena Capacity: 175 MWp Capacity: 851 MW1 Capacity: 270 MWp A

37. Slide 37: EIP - Crédit Agricole acquisition of 25% Repsol Renovables equity stake

    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

38. Slide 38: Latest acquisition helps to de-risk 2025 and 2030 capacity addition targets

    Latest acquisition helps to de-risk 2025 and 2030 capacity addition targets De-risking the ambition ABO Wind  Acquired three wind farms and two solar plants in Spain  Adds 250 MW to Repsol portfolio of renewable projects  Located in Palencia, will share interconnection infrastructures 7.7 OECD wi

39. Slide 39: Decarbonization: Metrics and targets

    Decarbonization Metrics and targets 04.

40. Slide 40: Repsol's set of key metrics and targets

    Repsol’s set of key metrics and targets, with one core metric Carbon Intensity • 2025-2030-2040-2050 w/ scope 3 included • GW renewable power generation capacity: 2025-2030*, 2040-2050** reduction • Three metrics for scope 3: primary Business metrics • Ton/yr production of renewable liquid fuels: 20

41. Slide 41: Renewed decarbonization ambition

    Renewed decarbonization ambition Carbon Intensity Indicator reduction targets [gCO2/MJ] Absolute emissions reduction (%) Scope 1&2 operated emissions [Mt CO2eq] -55% -30% 2016 2030 2016 2030 Methane intensity reduction 2025 vs 2017 (%) OLD NEW -25% Target intensity* -85% 0.20% 41 * Operated methane

42. Slide 42: Delivery

    Delivery 05.

43. Slide 43: Solid results leveraged on a strong operational performance in all divisions

    Solid results leveraged on a strong operational performance in all divisions Key messages 1Q23 Strategic progress in complex environment  Production growth supported by flexibility in unconventionals €1.9 B €1.8 B  Maximizing value in Refining thanks to tier-1 assets Adjusted Income CFFO  Closing

44. Slide 44: Shareholder remuneration at the upper end of distribution range

    Shareholder remuneration at the upper end of distribution range Outlook 2023  Strong financial position to face market volatility  Weakening of refining environment in April due to elevated levels of diesel inventories and the return of French refineries. YTD refining margin indicator of ~14 $/bbl

45. 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 2030 (MtCO2e) 30 25.4 16% 15,0% 25 14% 12% 20 16.1 9,6% 55% 10% 15 8% 36% 11.4 6% 5,0% 5,0% 10 4% 2,5% 2,9% 5 2% 1,1% Year of reference 0% 0 Real value 2016 2017 2018 2

46. Slide 46: Stepping up the Transition

    Investor Stepping up the Transition Update Driving growth and value May 2023 46

Repsol — Investor Presentation (May 2023) on 6ix