Repsol Sa · BME:REP
Repsol Sa — Investor Presentation (March 2023)
48 slides from Repsol Sa's investor presentation, March 2023
Slide 1: Stepping up the Transition
Investor Stepping up the Transition Update Driving growth and value March 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 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,
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: 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
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 Capital 200 M shares1 50 M shares4 before reduction 100% SBB expected in SP end July’23 If Price deck 4 Extra shareholder distribution impro
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 2021 2022 Solid investment grade supported by Rating Agencies 1. I
Slide 15: Business strategies
Business strategies 03.
Slide 16: Setting the new business priorities
Setting the new business priorities Upstream Industrial Customer-centric 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 Canada UK ‒ Alaska Nor
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
Slide 20: Progressing in portfolio rationalization and FIDs
Progressing in portfolio rationalization and FIDs Upstream Portfolio rationalization FIDs 2022 Spain 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 (GoM) 3Q22 Vietnam 2Q22 Block 46 C
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 emission intensity Emissions reduction Emissions intensity per barrel produced (kgCO2/boe) New production pushes down emission
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 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 25% Worki
Slide 23: Setting the new business priorities
Setting the new business priorities Upstream Industrial Customer-centric 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 ambition2 to become Iberian leader Renewable H2 capacity under development [GWeq] Multi-technology approach New ambitions3 1.9 GWeq providing flexibility, and optimizing production Electrolysis Biomethane P
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: 25/25 decarbonization program with strong contribution to margin improvement
25/25 decarbonization program with strong contribution to margin improvement and CO2 reduction Maximizing energy efficiency with attractive returns New low carbon business selected projects C43: Waste & UCOs Investment Capacity Industrial energy efficiency treatment plant 250 kta Sustainable biofuel
Slide 29: Setting the new business priorities
Setting the new business priorities Upstream Industrial Customer-centric 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-Centric Businesses 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 servic
Slide 31: Building on our advantages
Building on our advantages Customer Centric 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
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 >8 M customers Transversal by 2025 >35 M >24 M >10 M 2 M1 loyalty Program Repsol registered Repsol digital Mobility ‒ Integrated customer data Home app
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 A very synergistic business with public attractive economics for Repsol 50km chargers The economics of E-Mobility & home power consumption are even Committed to develop a mor
Slide 34: Setting the new business priorities
Setting the new business priorities Upstream Industrial Customer-centric 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 Accelerating our ambitions from a sizeable, tangible 20 GW >10% and technologically and geographically diversified pipeline of renewable projects Increased Renewables Best-in-class Equity IRR capacity by 203
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 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 Anto
Slide 37: Hecate acquisition
Hecate acquisition De-risking the ambition Well-diversified footprint across the Early and mid term projects The acquisition of a stake in Hecate Energy allows Repsol most attractive US energy markets… to create a high growth renewable platform with strong 16.8 GWdc development capabilities in the U
Slide 38: 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 Overview Equity payment to • Price implies valuing Repsol’s renewables business at €4.4 B, including debt Repsol • Partnership with reputable, experienced investo
Slide 39: Asterion acquisition helps to de-risk 2025 and 2030 capacity addition targets
Asterion acquisition helps to de-risk 2025 and 2030 capacity addition targets De-risking the ambition 7.7 OECD GW Countries Wind/ €560 Solar million1 Balance (1) Price to be paid, once closed, includes also a contingent payment of €20 million additional to this figure 39
Slide 40: Decarbonization: Metrics and targets
Decarbonization Metrics and targets 04.
Slide 41: Repsol's key metric and target driving our strategy
Repsol’s key metric and target driving our strategy Carbon Intensity Indicator reduction targets (gCo2/MJ) 41
Slide 42: Repsol's set of key metrics and targets, with one core metric
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- reduction 2050** • Three metrics for scope 3: primary • Ton/yr production of renewable liquid fuels: 2025-2030*, 2040-
Slide 43: Delivery
Delivery 05.
Slide 44: Strong strategic delivery towards long-term targets
Strong strategic delivery towards long-term targets Key messages 2022 Accelerating transformation ▪ Strategic partnerships in Upstream and Renewables crystallize value and liberate capital to accelerate shift to Low Carbon (~ €4.3 B combined proceeds) €6.7 B €8.9 B ▪ High-grading Upstream portfolio
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 16% 15,0% 25.4 14% 25 36% 12% 20 16.1 9,6% 10% 55% 8% 15 11.4 6% 5,0% 5,0% 10 4% 2,9% 2,5% 5 2% 1,1% Year of reference SP 21-22 0 0% 2016 2017 2018 201
Slide 46: Organic cash flow generation supports increased distributions and capex
Organic cash flow generation supports increased distributions and capex Outlook 2023 80 $/bbl Brent Cash Flow from ~ €8 B 4 $/Mbtu Henry Hub Operations 9 $/bbl Refining margin indicator 47% Upstream Organic Capex ~ €5 B 23% Industrial 30% Commercial and Renewables +11% dividend to 0.70 €/share Share
Slide 47: Investment focus on Upstream and Low Carbon initiatives
Investment focus on Upstream and Low Carbon initiatives Capex 2023 Organic Capex 35% in Low Carbon initiatives 2023 86% in OECD countries ~ €5 B Upstream ~ 70% in projects with FID already taken > 80% in production growth projects 47% > 60% in North America 1st phase of Pikka. Additional wells in Ma
Slide 48: Stepping up the Transition
Investor Stepping up the Transition Update Driving growth and value March 2023 48