Slide 1: Repsol's Green Bond Framework
Repsol’s Green Bond Framework Committed to a low-emissions future
Slide 2: Disclaimer
Disclaimer ALL RIGHTS ARE RESERVED © REPSOL, S.A. 2017 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. Our commitments to sustainability 3. Green Bond Framework 4. Financial Position 5. Conclusions © 3
Slide 4: Company Overview
Company Overview 1 4
Slide 5: Through the value chain and across the globe
Through the value chain and across the globe Company overview and strategy Both Our shareholders (**) Upstream main projects Core businesses: Upstream and Downstream ~700 kboepd ~1 Million bpd refining production capacity ~2.4 billion boe 20% stake in GNF proved reserves (*) (*) As of 31/12/2016 (**
Slide 6: Sustainable value and resilience
Repsol today Strategic Plan 2016-2020 PORTFOLIO MANAGEMENT VALUE • Capex flexibility • Shift from growth to value delivery • Portfolio rationalization • Competitive and sustainable shareholder remuneration EFFICIENCY RESILIENCE • Integrated model • Synergies and company-wide Efficiency Program • Sel
Slide 7: 2016 - A year of strategic progress
2016 - A year of strategic progress Company overview and strategy Group FCF breakeven Divestments $/Bbl 50 ~48 ~ 13% • 10% stake in GNF € 1.9 Bn ~42 ̴ 60 Target: ~40 • Piped LPG € 0.7 Bn 40 ̴ 43 • Tangguh € 0.3 Bn 30 • TSP € 0.1 Bn • Others (eg: LPG Ecuador and Peru) € 0.6 Bn 20 2015 2016 TOTAL CASH
Slide 8: Key messages 1Q 2017
Key messages 1Q 2017 Company overview and strategy Continued delivery on strategic objectives Bn€ ~6.5 ~6.5 (X) 1.1 ~1.1 1.7 Strong EBITDA CCS generation Net Debt/EBITDA in line with projections (1) Upstream Downstream Kboe/d 693 USD/Bbl 7.1 ~680 6.4 Production volumes ahead of plan Refining margin
Slide 9: Our commitments to Sustainability
Our commitments to Sustainability 2
Slide 10: Our commitments to sustainability
Our commitments to sustainability Commitment to safety Commitment to Zero Accidents by 2020 Embedded safety culture Strict asset integrity procedures Respect for human rights Excellence in environmental management Policy on respect for human rights and Excellence in spill prevention and re
Slide 11: Energy Efficiency and Climate Change
Our commitments to sustainability Promoting a low emissions strategy Energy Efficiency and Climate Change Our position on climate change • At Repsol, we share society’s concern over the effect that human activity is having on climate and we believe that two global goals have to be pursued: To figh
Slide 12: Energy Efficiency and Climate Change: emissions objective
Our commitments to sustainability Promoting a low emissions strategy Energy Efficiency and Climate Change Our objective: to avoid 1,9 million tons of GHG emissions annual run rate by 2020. Board of Directors Commitment Josu Jon Imaz. CEO, Repsol • “We must be ambitious in our emission reduction targ
Slide 13: Moving from stakeholder engagement to partnerships
Our commitments to sustainability Promoting a low emissions strategy Energy Efficiency and Climate Change Moving from stakeholders engagement to partnerships Investors Roadshow Sustainability Report Carbon Pricing • Repsol hosts periodic meetings with Environmental, Social and Governance (ESG) inves
Slide 14: Green Bond Framework
Green Bond Framework 3
Slide 15: Green Bond Framework: Description
Green Bond Framework Description Repsol Green Bond Framework has been developed with the aim of providing transparency, disclosure, integrity and clarity to investors, and follow the ICMA’s Green Bond Principles • Repsol’s Green Bond Framework objective is to avoid GHG emissions through the implemen
Slide 16: Green Bond Principles Compliance
Green Bond Framework Green Bond Principles Compliance Repsol Green Bond Framework complies with the ICMA’s four core Green Bond Principles: • Proceeds will be allocated to investment projects aimed to decrease GHG emissions by 1.2 millions of tons of CO2eq. The GHG emissions reduction plan includes
Slide 17: Financial Position
Financial Position 4
Slide 18: Financial Position
Financial Position Financial Strategic Plan 2016 - 2020 Sound track record Resilient Plan with stronger Conservative in managing adverse business profile financial policy conditions Commitment to reduce debt and maintain investment grade The three Rating Agencies, Standard & Poor’s, Moody’s and Fitc
Slide 19: Net Debt Evolution
Financial Position Net Debt Evolution €Bn 12 3.2 0.5 10 8 (3.8) (3.6) 6 11.9 4 8.1 2 0 Net Debt 31st Operating Cash Capex Dividends Paid Divestments Net Debt 31st Dec 2015 Flow & Others Dec 2016 Targeting FCF Breakeven at $40/Bbl 19
Slide 20: Strong Liquidity Position
Financial Position Strong Liquidity Position Bn€ 10.6 10.7 9.3 Operating 9.2 committed Credit Lines 0.5 7.2 Structural committed 3.9 Credit Lines 5.5 3.9 Cash & 4.9 Equivalents 3.9 1.6 1.7 2.0 1.4 0.1 Liquidity as of 2017 2018 2019 2020 2021 2022 31st Dec 2016 Liquidity covers long term debt maturit
Slide 21: Conclusions
Conclusions • Strategy to create sustainable value and resilience through the integrated model and flexibility • Maintenance of investment grade is fundamental to our long term strategy however the objective is to obtain a credit rating of BBB stable thanks to a conservative financial policy • Long
Slide 22: Green Bond Framework
Green Bond Framework For ESG enquiries speak to us by calling (+34) 91 753 55 48, or alternatively, you can send us an email to investorsrelations@repsol.com 22
Slide 23: Annexes
Annexes 5
Slide 24: External review highlights
Green Bond Framework External review highlights “Vigeo Eiris confirms that a Bond intended by Repsol to be a “Green Bond” with positive contribution to sustainable development, would be aligned with the Green Bond Principles. Vigeo Eiris reaches a reasonable level of assurance on the Bond contributi
Slide 25: Categories and technical typologies
Green Bond Framework Categories and technical typologies Category 1: Energy Efficiency • Upgrade of equipment: Heat Our facilities consume large amount of energy and this energy is produced in heat equipments as boilers, furnaces, etc. Their operation and improvement is a key issue in order to impro
Slide 26: Examples of eligible projects
Green Bond Framework Examples of eligible projects Replacement steam turbine 621KT-51 by Air preheater modifications in Coker and Vacuum furnaces units electric motor with speed mechanical regulation • Conversion units furnaces were design with air preheaters in • Raw Gas Compressor (621K-51) is the