Repsol Sa · BME:REP
Repsol Sa — Investor Presentation (September 2020)
41 slides from Repsol Sa's investor presentation, September 2020
Slide 1: Investor Update
Investor Update September 2020 0
Slide 2: Disclaimer
Disclaimer ALL RIGHTS ARE RESERVED © REPSOL, S.A. 2020 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 2. Resilience plan 2020 3. Highlights 2Q20 4. Net zero emissions 2050 5. Upstream 6. Industrial 7. Commercial and Renewables 8. Outlook 2020 9. Historic data book
Slide 4: Company overview
1 Company overview
Slide 5: New business segments aligned with strategic vision
New business segments aligned with strategic vision Company overview Upstream Industrial Commercial and Hydrocarbon Exploration • Refining Renewables and Production • Chemicals • Mobility • Trading • Lubricants • Wholesale & Gas trading • LPG • Repsol Peru • Power & Gas Yield & Focus Yield & Tier1 P
Slide 6: Repsol: a unique, integrated global position
Repsol: a unique, integrated global position Company Overview Upstream Industrial Commercial and Renewables Upstream Refining Chemical Mobility Power & Gas Production1 Refineries Total production Service stations Installed 709 Kboe/d 6 capacity2 >4,900 generation capacity ~4.7 Millions tons ~ 3 GW P
Slide 7: Worldwide presence
Worldwide presence Company Overview 8.2% Sacyr 91.8% Free Float Upstream Industrial / Commercial & Renewable Both 23% of retail shareholders 32% of institutional shareholder base managed under ESG criteria 6
Slide 8: Integrated model and portfolio flexibility to withstand crisis
Integrated model and portfolio flexibility to withstand crisis Company Overview Tier-1 Resilience Plan that stands out in 2020 self-finance commitment to face the the sector crisis: Net Debt flat vs. Dec’2019 Sustainable multi-energy project: Industry leading dividend yield decarbonization strategy
Slide 9: Increasing shareholder remuneration and full buyback of scrip
Increasing shareholder remuneration and full buyback of scrip Company Overview Dividend per share based on disbursement year CAGR +8% €/share 0.80 (1) 0.95 (1) 1.00 (1) 0.90 (1) Historic cash dividend Buybacks Historic scrip dividend Scrip dividend + buybacks 0.19 2017 2018 2019 2020 Buyback program
Slide 10: Resilience plan 2020
2 Resilience plan 2020
Slide 11: Resilience Plan delivering above original targets
Resilience Plan delivering above original targets Resilience plan 2020 Original target 1H20 captured New 2020 estimate Opex savings €350 M > €250 M €450 M Delivering above original targets Capex savings €1,000 M > €550 M €1,100 M WC optimization €800 M > €300 M €800 M Self-financed Resilience Plan 2
Slide 12: Solid financial position that covers debt maturities until 2030
Solid financial position that covers debt maturities until 2030 Resilience plan 2020 • 2 senior bonds for €1.5 Bn issued in April Reinforced liquidity position and • 2 new perpetual subordinated bonds for €1.5 Bn issued in June financial strength • Repurchase of €0.6 Bn of the €1 Bn perpetual subord
Slide 13: Highlights 2Q20
3 Highlights 2Q20
Slide 14: Upstream: immediate response to the COVID-19 crisis
Upstream: immediate response to the COVID-19 crisis through instant capex flexibility and opex efficiencies Highlights 2Q20 Instant capex flexibility Upstream production (M€ accrued investments) (kboed) 562 -62% -46 -41 38 -5 214 2Q19 2Q20 694 640 Unit opex reduction ($/boe net opex) 9.0 -12% 2Q19 E
Slide 15: Industrial businesses impacted by COVID-19
Industrial businesses impacted by COVID-19 Highlights 2Q20 • All refineries remained operational • Higher international margins Refining during the crisis offset by lower prices and Premium in the CCS unit Chemicals • 3.0 $/bbl Refining margin narrow naphtha-propane margin despite adverse indicator
Slide 16: Mobility getting back to normal, while progress in Low Carbon continues
Mobility getting back to normal, while progress in Low Carbon continues Highlights 2Q20 • Service Stations: 48% sales Lubricants, Mobility decrease 2Q20 vs. 2Q19 • Higher margins foster robust Asphalts and performance in both • Gasoline and diesel demand Specialties & businesses recovery: ~10-15% be
Slide 17: 2Q20 results
2Q20 results Highlights 2Q20 Results (€ Million) Q2 2020 Q1 2020 Q2 2019 1H 2020 1H 2019 Upstream -141 90 323 -51 646 Industrial 8 288 177 296 448 Commercial and Renewables 42 121 128 163 265 Corporate and Others -167 -52 -131 -219 -244 Adjusted Net Income -258 447 497 189 1,115 Net Income -1,997 -4
Slide 18: Net zero emissions 2050
4 Net zero emissions 2050
Slide 19: Strategy towards achieving net zero emissions in 2050
Strategy towards achieving net zero emissions in 2050 Net zero emissions 2050 New emissions reduction objectives of Carbon Our challenge: Intensity Indicator1 Lead the Energy transition in line 2025 2030 with the objective of the Paris -10% Agreement to limit the increase in -20% 2040 global tempera
Slide 20: Natural gas and energy efficiency as main levers
Natural gas and energy efficiency as main levers Net zero emissions 2050 1 Natural Gas role 2 Energy efficiency 3 Low Carbon 4 Technological developments 64% of our production Reduce our Energy Generation and Capture, usage and storage Consumption and GH commercialization of of CO2 emissions renewab
Slide 21: Upstream: cash generator in challenging price scenarios
Upstream: cash generator in challenging price scenarios Net zero emissions 2050 Upstream Portfolio improvement Capex and Exploration Energy Transition Assets Unconventional investment flexibility Emission reductions Geographical concentration and short cycle projects Methane: 25% in 2025 Ability to
Slide 22: Industrial: circularity and emission reduction
Industrial: circularity and emission reduction Net zero emissions 2050 Refining Chemical First quartile of European refining Raw materials Optimization and digitization Flexibility Emission reduction Increasing presence of circular raw material Energy efficiency Carbon intensity reduction Low emissi
Slide 23: Commercial and G&P: customer centric, multi-energy offer
Commercial and G&P: customer centric, multi-energy offer Net zero emissions 2050 Commercial Gas & Power Customer centric and integrated energy offer 7.5 GW low carbon generation target by 2025 Actual installed capacity: ~ 3 GW Innovative products and services Renewable power generation under constru
Slide 24: Upstream
— REPSOL GA glee ca Ow ives! ® Upstream
Slide 25: Four regions in the portfolio
Four regions in the portfolio Upstream North America Europe & Africa Unconventional portfolio, operatorship and High margin barrels, key development valuable midstream positions projects from exploration succes 182 kboe/d 121 kboe/d 72% 2018 23 % 2019 84% / 84% Production (kboe/d) (1) 715 709 1% / 7
Slide 26: Exploration success in core areas
Exploration success in core areas Upstream Gulf of Mexico Alaska Colombia 6 discoveries in 2020 with • US: Monument (WR 272 block) • Mitquq and Stirrup positive • Positive results of the Lorito combined gross resources of • Mexico: Polok and Chinwol discoveries results well (CPO-9 block) (deepwater
Slide 27: Industrial
ww REPSOL Industrial
Slide 28: Top quartile Refining position among European peers
Top quartile Refining position among European peers Industrial (1) 5 refineries optimized as a single system Top quartile position among European peers CORUÑA BILBAO % FCC Equivalent 100% TARRAGONA 1Q 2Q 3Q 4Q 80% 60% PUERTOLLANO 40% CARTAGENA 20% 0% 0 2 4 6 8 10 12 14 Oil pipeline Repsol Oil pipeli
Slide 29: Two major pioneering decarbonization projects
Two major pioneering decarbonization projects Industrial One of the world’s largest plants to manufacture net zero Plant for generation of gas from urban waste emissions fuels • Replacing part of Petronor’s production process Benefiting from Spain’s renewable resource to reduce the traditional fuel
Slide 30: Competitive positioning in Chemicals
Competitive positioning in Chemicals Industrial Strong and Integrated position in Spain and Portugal High flexibility of feedstocks Feedstock to crackers – LPG´s (%) ~ 60% ~50% TARRAGONA 40% (3,050 kT/y) PUERTOLLANO Total Production Ref. Europe: 25 % SINES (650 kT/y) Capacity: (1,050 KT/y) 4,750 KT/
Slide 31: Commercial & Renewables
7 Commercial & Renewables
Slide 32: Multi-energy offer with ~3 GW installed capacity of clean energy
Multi-energy offer with ~3 GW installed capacity of clean energy Commercial and Renewables More than 4,900 service stations in 5 countries International expansion in Lubricants Repsol's market share Spain • Leadership in Spain • Customer-centric with 10 million customers and strong energy brand • Ex
Slide 33: Accelerated delivery of 2025 objectives in Low Carbon
Accelerated delivery of 2025 objectives in Low Carbon Commercial and Renewables ~700 MW Hydro Installed ~1,650 MW CCGT capacity Cogeneration + 600 MW ~3 GW WindFloat Atlantic: 5 MW Generation Delta: 335 MW Under Valdesolar: 264 MW Construction Project pipeline Kappa: 127 MW 1,400 MW ~2 GW PI: 175 MW
Slide 34: Entry in Chile's renewable market
Entry in Chile's renewable market Commercial and Renewables Diversified portfolio (52% wind and 48% solar) of up to 2.6 GW Initiating international • 78 MW in operation expansion in renewables • 1.6 GW of projects under construction JV (110 MW) or in advanced development • Joint Venture with Ibereól
Slide 35: Outlook 2020
a REPSOL Outlook 2020
Slide 36: Preserving the balance sheet and investment grade
Preserving the balance sheet and investment grade Outlook 2020 FY2020 Operating Production 650 kboed • Assumes Libya producing from 4Q20 metrics Ref. margin indicator 3.8 $/bbl • Uncertain demand recovery Financial • In line with 2019 without the positive Net Debt (Dec’20) ≤ €4.2 B outlook effect of
Slide 37: Historic data book
9 Historic data book
Slide 38: Environment and Repsol group
Environment and Repsol group Historic data book MACRO ENVIRONMENT International References Unit 2017 2018 2019 Spreads vs. Brent ($/bbl) 2017 2018 2019 Brent ($/Bbl) 54.2 71.3 64.2 Maya - Brent [9.7] [10.6] [11.1] WTI ($/Bbl) 50.9 64,9 57.0 Ural - Brent [0.9] [1.1] [0.4] Henry Hub ($/MBtu) 3.1 3.1 2
Slide 39: Upstream
Upstream Historic data book Production Proven reserves Kboe/d Mboe 2017 2018 2019 2017 2018 2019 Main figures (M€) 2017 2018 2019 Europe 51 60 61 59 102 88 Adjusted Net Income 632 1,325 1,050 Latin America 348 342 333 1,490 1,419 1,196 EBIT 1,009 2,514 1,969 North America 174 175 182 504 535 619 EBI
Slide 40: Downstream
Downstream Historic data book Downstream Assets Refining capacity Refining Converson index (%) Businesss Unit 2017 2018 2019 (kbbl/d) Spain 896 63 Refining Bilbao (Petronor) 220 63 Distillation utilization Tarragona 186 44 Spain % 93.6 92.9 88 Coruña 120 66 Peru % 89.8 81.7 74.8 Puertollano 150 66 C
Slide 41: Investor Update
Investor Update September 2020 Repsol Investor Relations investor.relations@repsol.com 40