Repsol Sa · BME:REP
Repsol Sa — ESG Presentation (February 2020)
39 slides from Repsol Sa's sustainability presentation, February 2020
Slide 1: Walking the talk on energy transition
Walking the talk on energy transition February 2020 = REPSOL
Slide 2: All rights are reserved
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 by any mean
Slide 3: Index
Company overview Sustainability as part of Repsol’s DNA Repsol and the Low Carbon transition Corporate Governance Annexes
Slide 4: Company Overview
Ul Lompany Overview
Slide 5: Delivering value growth through the cycle
01 Company overview Delivering value growth through the cycle 1. Increasing shareholder returns 2. Growing our portfolio profitably Dividend per share 8% p.a. growth with full buyback of shares Growth across all value-creation metrics, at any oil price Dividend target fully covered at $50/bbl
Slide 6: Repsol: a unique, integrated Global Position
01 Company overview Repsol: a unique, integrated Global Position Multy-energy company ~715 kboe/d production ~2.3 billion boe proved reserves1 M shares as of December 2019 Gas to oil ratio: 73% of the reserves and 63% of the production 1 Million bbl/d refining capacity Sacyr Free Float ~2.6 Millions
Slide 7: Key metrics to 2020 @ $50/Bbl Brent flat
01 Company overview Key metrics to 2020 @ $50/Bbl Brent flat EPS Production CFFO +€0.6/share DPS 2.6% CAGR +€1.9B growth growth 8% CAGR CAGR kboe/d 2.6% CAGR 750 CAGR CAGR +8% 750 +12% DPS paid 695 +12% on year 1.0 € Billion 6.5 EPS 2.0 €/share €/share 0.8 4.6 1.4 Scrip dividend 0.2 Scrip dividends
Slide 8: Growing our portfolio profitability
01 Company overview Growing our portfolio profitability 2019E (B€) +0.3 +0.33 +0.08 +0.133 +0.12 +0.06 +1.0 UPSTREAM DOWNSTREAM CORPORATION +1 B€ + 0.8 B€ + 0.1 B€ 2017 CFFO1 New RISE (efficiency & International Profitability Expand & Low Corporate & 2020 CFFO @50 $/bbl production Digital Program)2
Slide 9: Sustainability as part of Repsol's DNA
02 Sustainability as part of 9
Slide 10: Sustainability as part of Repsol's DNA
02 Sustainability as part of Repsol’s DNA Established on Approved by the Approved by the Approved on June 2017. Aligned with the May 27th, 2015 Board of Directors on Corporate Executive It establishes specific consecution of the December 2015 and Committee on goals from 2020 to Sustainable updated o
Slide 11: Repsol's Global Sustainability Plan: main axes
02 Sustainability as part of Repsol’s DNA Repsol’s Global Sustainability Plan: main axes Our ambition: zero Accidents Embedded safety culture Repsol will be a net zero emissions company by 33,33% of women on the Board of Directors Strict asset integrity procedures 2050 reaching our target
Slide 12: Safe operations
02 Sustainability as part of Repsol’s DNA Safe operations Our ambition: zero accidents We have established targets to reduce occupational safety (LTIFR1 and TRIR2) and PSIR3 2 fatalities in 2018 (accidents in transport activities in Spain) Occupational Safety 1-2 Process Safety Incident Rate3 LTIFR
Slide 13: Safe operations
02 Sustainability as part of Repsol’s DNA Safe operations Culture Project: Developed our own evaluation methodology on safety culture, Make headway with the implementation of the Company's aiming to identifying strong and weak points. The results enable the Crisis Plan by carrying out a crisis m
Slide 14: Ethics and Transparency
02 Sustainability as part of Repsol’s DNA Ethics and Transparency Our ambition: No cases of corruption in the activities carried out by the Repsol Group Allows employees and third parties to ask A new Code of Ethics and Business Its duty is to manage the compliance of the questions and report
Slide 15: People: Human Rights and community relations
02 Sustainability as part of Repsol’s DNA People: Human Rights and community relations Committed to UN Guiding Principles on Business and Human Rights “Protect, Respect and Remedy” Global Framework and management system, compliant with leading International Standards (International Finance Corpo
Slide 16: People
02 Sustainability as part of Repsol’s DNA People Our ambition: to achieve and maintain strong relationships with communities based on trust, mutual respect and shared value through active dialogue with communities Repsol recognizes and respects the unique nature of Repsol carries out human right
Slide 17: Environment
02 Sustainability as part of Repsol’s DNA Environment WATER BIODIVERSITY AND ECOSYSTEM SERVICES Prevention and minimization of any negative environmental impact in all our 34% reused water as against withdrawn water operations: Repsol has defined the 2025 strategic actions to achieve a sustainab
Slide 18: Innovation and technology
02 Sustainability as part of Repsol’s DNA Innovation and technology RESEARCH AND DEVELOPMENT CORPORATE VENTURING: FUND 2016-2020 New Technologies E&P 200 +230 20 patents registered 4% Circular Economy projects researchers Advanced Mobility 21% in 2018 25% 190 84 85M€ Reliability in operations 7% par
Slide 19: Repsol and the Low Carbon transition
03 Repsol and the 19
Slide 20: Governance
03 Repsol and the Low Carbon transition Governance Sustainability Committee created in 2015 The Board of Directors, at the proposal of the At least twice a year, or as often as necessary, the CEC and the Sustainability Committee, approves the strategy for Sustainability Committee review information
Slide 21: Strategy towards being a net zero emissions company by 2050
03 Repsol and the Low Carbon transition Strategy towards being a net zero emissions company by 2050 Our challenge: to position ourselves in a scenario compatible with Paris Agreement 2ºC Repsol has established new goals for the reduction of its carbon intensity indicator from a 2016 baseline: 10%
Slide 22: Strategy
03 Repsol and the Low Carbon transition Strategy 01. WE PROMOTE THE ROLE OF NATURAL GAS 03. ENERGY EFFICIENCY • 63% of our production and 73% of our reserves are gas • We set up and deploy ambitious energy efficiency programs to reduce • Committed to mitigate methane emissions associated with our en
Slide 23: Strategy: Low-emissions business
03 Repsol and the Low Carbon transition Strategy 05. LOW-EMISSIONS BUSINESS 2.9 GW total installed capacity Developing high value-added products (Pol polyols, Additional planned projects for ~2.7 GW (1 GW in operation by Rubber, EVA) 2022) Capability for more than 35% light feedstocks (LPG)
Slide 24: Low emissions business: roadmap to 2025
03 Repsol and the Low Carbon transition Strategy Low emissions business: roadmap to 2025 Leverage our industrial self consumption Strong brand and ~10M clients base Technical capabilities and experience as the largest gas consumer in Spain with direct contact in managing large scale projects • Creat
Slide 25: Accelerated delivery of 2025 objectives in low carbon generation
03 Repsol and the Low Carbon transition Accelerated delivery of 2025 objectives in low carbon generation Developing a strong position in Spain with 2.9 GW of installed capacity 335 MW 25 MW 255 MW 264 MW 126 MW 204 MW on the Iberian Peninsula. 25
Slide 26: Risk Management
03 Repsol and the Low Carbon transition Risk Management Repsol operates in areas with strict legislative requirements for energy and carbon. Pursuant to the Paris Agreement, countries’ commitments will have a significant impact on climate policies In Europe, including a number of key Repsol has
Slide 27: Metrics and Targets
03 Repsol and the Low Carbon transition Metrics and Targets -3 Mt CO2eq by 2025 -25% by 2025 -50% of routine Baseline: 2017 Baseline: 2017 flaring by 2025 Baseline: 2018 SHARING BEST PRACTICES AND REPSOL ZERO ROUTINE TECHNOLOGY DEVELOPMENT FLARING ENDORSEMENT 1 2 Minimize routine Ensure that new fla
Slide 28: Corporate Governance
aah oO: i = Al ware Corporate Governance
Slide 29: Board of Directors
04 Corporate Governance Board of Directors The company's Board of Directors recognizes that a solid commitment to corporate governance is critical to establishing trust and credibility with investors Independents make up 53.3% of the Board. Non Executive Directors make up 93,3% of the Board • None o
Slide 30: Board of Directors
04 Corporate Governance Board of Directors The roles of the CEO and Chairman have been fully separated since 2014 • Repsol recognizes that having a diverse Board in terms of gender, nationality and skills can add value to the decision-taking process • As to gender diversity and after the appointment
Slide 31: Board of Directors
04 Corporate Governance Board of Directors The Company continues improving the disclosure on the remuneration issues and the implementation of international best practices The Remuneration Report is submitted annually to the General Shareholders Meeting. On 2019 AGM the Report was approved by 95.6
Slide 32: Board of Directors: composition
04 Corporate Governance Board of Directors: composition Chairman Antonio Vice Chairman Manuel Brufau Manrique Maite Ballester CEO Josu Jon Teresa Imaz García-Milá Independent Director (53.33%) Rene Isabel Dahan Proprietary Director (20%) Torremocha Executive Director( 6,67%) J. Robinson Ignacio West
Slide 33: Board Committees: composition
04 Corporate Governance Board Committees: composition Chairman Teresa García-Milá Antonio Brufau Independent Director Vicechairman Henri Philippe Manuel Reichstul Proprietary Director Chairwoman Manrique Isabel Torremocha Maite Executive Director J. Robinson Ignacio Ballester West Martín External Di
Slide 34: Annexes
05 Annexes 34
Slide 35: Climate reporting and partnership
05 Annexes Climate reporting and partnership Moving from stakeholder engagement to partnerships Historical results 2010 2011 2012 2013 2014 2015 2016 2017 2018 OGCI is an industry-driven initiative officially launched at the UN Climate Summit in 2014. It aims to catalyze action on climate change. Tr
Slide 36: Main Sustainability Indexes and Initiatives
05 Annexes ‘Repsol is one of the 2 companies in Oil&Gas Main Sustainability Indexes and Initiatives sector that comes into alignment with the Paris Agreement before 2050’ 2019 2018 INDUSTRY RATING DISTRIBUTION Level 4 Level 4 25% (max. score) (max. score) 18% 14% 14% 11% 11% 7% TBA Nov 2019 B (band
Slide 37: Repsol and the Low Carbon transition: metrics and objectives
05 Annexes Repsol and the Low Carbon transition: metrics and objectives GHG emissions reduction (Millions of Tons of C02) 1.76 Mt GHG avoided between 2014 and 2018. Achieved 85% of 2014- 2020 objective 4.9 Mt GHG avoided between 2006 and 2018 3 Mt CO2 eq emissions reduction target by 2025 37
Slide 38: Repsol Investor Relations contact details
Repsol Investor Relations contact details: Mr. Ramon Álvarez- Pedrosa, Director of Investor Relations ralvarezp@repsol.com + 34 91 7536315 Ms. Leticia Padura, Investor Relations ESG Manager lpadurafn@repsol.com +34 91 7535988 Ms. Sara Elizalde, Investor Relations ESG Analyst sara.elizalde@repsol.com
Slide 39: Walking the talk on energy transition
Walking the talk on energy transition February 2020 39