Repsol Sa · BME:REP
Repsol Sa — Investor Presentation (September 2015)
42 slides from Repsol Sa's investor presentation, September 2015
Slide 1: Investor Update September 2015
Tarragona Refinery Jetty Investor Update September 2015
Slide 2: Disclaimer
Disclaimer ALL RIGHTS ARE RESERVED © REPSOL, S.A. 2015 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. Integration of Talisman Energy 3. Outlook 2015 & Efficiency Measures 4. Upstream 5. Downstream 6. Gas Natural Fenosa 7. Financial Position 8. Environmental, Social & Governance 9. Annex © 3
Slide 4: Company Overview
Company Overview 1
Slide 5: Repsol today
Company Overview Repsol today 1 million boe/d 4,700 service refining capacity stations Norway Canada Russia UK Ireland Netherlands Romania Spain Italy Portugal Bulgaria USA Morocco ~ 27,000 ~ 2.2 Billion boe Algeria Libya employees proven reserves Trinidad & Tobago Vietnam Aruba Venezuela Malaysia C
Slide 6: Repsol's Shareholders
Company Overview Repsol’s Shareholders 11.72 %(*) 11.51% 8.898.73% % Caixabank S.A. 6.035.92% % Sacyr Vallehermoso, S.A. Temasek Institutional Free Float Free Float 58.48 % Retail Investor 14.64% Institutional Free Float: 59.20% Total number of shares: 1,400.36 million 6
Slide 7: Strategic Plan 2012-2016
Company Overview Strategic Plan 2012-2016 Maximize High growth Downstream Talisman in Upstream Acquisition Growth profitability Diversification Value Creation Growing from our strengths (2012-2016) Competitive shareholder Financial strength compensation All 2012-2016 Key strategic targets achieved 7
Slide 8: Strategic Plan 2016-2020
Company Overview Strategic Plan 2016-2020 “A new Strategic Plan 2016-2020(*), focused on value creation” • Optimization & Efficiency Profitability • Maximizing integration Sustainability • Attractive value proposal • Reinforcing Upstream business Enhanced Capabilities Risk Management • Resilience to
Slide 9: Integration of Talisman Energy
Integration of Talisman Energy 2
Slide 10: Acquisition of Talisman Energy
Acquisition of Talisman Energy Growth, Diversification and Value Creation Transformational deal, upgrading Repsol's portfolio and competitive advantage achieving global scale and diversification, greater exposure to Upstream, leading new opportunities and capabilities to create value. Greater exposu
Slide 11: Integration of Talisman
Integration of Talisman New Organizational structure May 8th: Closing of the transaction The purchase price allocation has been completed Upstream division Goodwill: 2.6 billion Dollars out (4 regional areas) of which 2.1 billion Dollars are the Deferred tax liabilities Firmly supported by the
Slide 12: Outlook 2015 & Efficiency Measures
Outlook 2015 & Efficiency Measures 3
Slide 13: Outlook 2015 & Efficiency Measures
Outlook 2015 & Efficiency Measures 2015 FY EBITDA1 €5-5.5Bn Excluding the contribution of Talisman assets, the EBITDA will be similar to that of 2014, even in an oil price scenario 40 dollars lower and with no contribution from Libya DOWNSTREAM UPSTREAM Energy efficiency saving programs In a muc
Slide 14: Go Program and synergies
Outlook 2015 & Efficiency Measures Go Program and synergies GO PROGRAM + RECURRENT SYNERGIES GO PROGRAM RECURRENT SYNERGIES Renegotiation of Annual target IMPROVEMENT contracts OF OPERATING Existing INCOME IN 2016 contracts (2015) OF €500M New Increased from contracts (Expected) $220M Go Program
Slide 15: Upstream
Upstream 4
Slide 16: Upstream: A proposal for strong value creation
Upstream A proposal for strong value creation Exploration Capex: Cost Efficiency in our Operations: • Repsol invested slightly below 4.5 Renegotiation process Billion dollars in Upstream capex Existing contracts: INVERSIONES (including G&G and G&A) in 2014. • 5% in Repsol suppliers • 7% in Talisman
Slide 17: Repsol's extensive list of opportunities
Upstream Repsol's extensive list of opportunities North America Africa & Europe Eagle Ford Marcellus Duvernay Mid-continent Reggane MonArb EXPLORATION WI: ~ 31% (1) Liquid rich play Dry Gas with own egressing WI: 100% Current WI: 29.25% WI: 30% Contingent resources 60%/40% liquids- Long Term Redevel
Slide 18: Operational update: Exploration
Upstream Operational update Exploration Reserve Replacement Ratio Alaska 2010 131 % Russia 2011 162 % 2012 204 % 2013 275 % 2014 118 % Romania Algeria Brazil Bolivia 14 wells have been concluded in 2Q15, 6 of them were positive: 2 exploration wells (Algeria and USA) and 4 appraisal wells (Bolivia,
Slide 19: Operational update: Key development projects
Upstream Operational update Key development projects Lapa Sapinhoá Akacias Duvernay Lapa and Reggane progress The third well was CPO-9 block reached gross Appraisal drilling of the as planned to deliver connected to our 2nd FPSO production of 10 kboed company’s lands in the production in 4Q1
Slide 20: Repsol's growth
Upstream Repsol's growth Increase in production, capital employed and OECD production Production (Kboepd) 190 kboed • North America region +55% 660 108 kboed • Asia & Russia region 525 kboed 338 • Europe, Africa & Brazil kboed 93 kboed region kboed 269 kboed • South America region 2Q14 2Q15 JUNE Cap
Slide 21: Downstream
Downstream 5
Slide 22: Improve profitability on operational excellence and efficiency
Downstream Improve profitability on operational excellence and efficiency Refining Petrochemicals • Maximize value of integration with • Reduce energy costs refining • Fuel consumption & losses • Competitive Plan: down by 6% at 2016 • Higher-value applications • Reduce CO2 emissions • Efficiency pro
Slide 23: Increased competitiveness of Downstream business
Downstream Increased competitiveness of Downstream business Competitive Downstream business, linked to quality assets and geographical situation Integrated Margin(*) of Refining and Marketing (Repsol vs the sector) Presence in a premium market for $/bbl refining Completion of expansion and conve
Slide 24: Improved competitiveness of refining assets
Downstream Increased competitiveness of Downstream business Improved competitiveness of refining assets Oil pipeline Repsol Oil pipelines CLH % FCC equivalent 2012 100% CORUÑA BILBAO 90% 1Q 2Q 3Q 4Q 80% 70% FCC equivalente (%) 60% TARRAGONA 50% 40% 30% 20% PUERTOLLANO 10% CARTAGENA 0% 0 1.000 2.000
Slide 25: Maximizing returns and capital discipline
Downstream Maximizing returns from the business and capital discipline In 2Q15 Results call, Repsol raised again its EBITDA CCS forecast (ex G&P) for 2015 up to 3.2 – 3.4 € bn €bn/year €bn/year 3.5 3 2.5 2 1.5 1 (*) 0.5 0 2014 2015E (*) 2015E capex figure includes the investments in La Pampilla Refi
Slide 26: Gas & Power: Access to premium markets in North America
Gas & Power Access to premium markets in North America Highly seasonal business Regasification facility and midstream assets with access to premium markets in North East USA Trading activity based in our Houston headquarters 1 Bfcd traded in 2014 Regasification plant Canaport LNG Total capacit
Slide 27: Gas Natural Fenosa
Gas Natural Fenosa P 5 gasNatural ey fenosa
Slide 28: Gas Natural Fenosa: A liquid asset with growth capabilities
Gas Natural Fenosa A liquid asset, with growth capabilities and a strong cash flow generator Strong LatAm footprint, growth and strong cash generation An European leading utility company with a strong footprint and Leading Utility growth in Latin America Dividend Yield Strong cash stream for Repsol
Slide 29: Financial Position
Financial Position yy
Slide 30: Resilient credit metrics under stress scenarios
Financial Position Resilient credit metrics under stress scenarios Net Debt to Capital Liquidity Position Employed Ratio 29.8% € 8.7 Bn Repsol remains fully committed with keeping the investment grade 30
Slide 31: Credit Rating Agencies
Financial Position Credit Rating Agencies Rating Agencies underline benefits from upstream portfolio diversification and Repsol´s flexibility to maintain target leverage ratios after acquisition of Talisman Energy “Repsol´s acquisition of Talisman strengthen business profile” 8 May 2015 Fitch affirm
Slide 32: Shareholder remuneration
Financial Position Shareholder remuneration 2015 maintaining our competitive shareholder remuneration at current levels with scrip option (DY) Dividend Yield (1) : (Gross Dividends paid during year / price at the beginning of the year) (DY)+10.7% € 1.00 (2) (DY)+6.3% (DY)+6.2% € 0.96 € 0.96 € 0.96 1
Slide 33: Environmental, Social & Governance
Environmental, Social & Governance 8
Slide 34: Corporate Responsibility Model: Our commitments
Environmental, Social & Governance Corporate Responsibility Model: Our commitments Zero Accidents Embedded safety culture Commitment to Strict asset integrity procedures safety Policy on respect for human rights based on the UN Excellence in spill prevention Guiding Principles on and respo
Slide 35: Monitoring and control of the sustainability indexes
Environmental, Social & Governance Monitoring and control of the sustainability indexes Repsol has led the Oil & Gas sector for two consecutive years, in the 2011 and 2012 editions of the prestigious Dow Jones Sustainability Indexes. The company also leads the Oil & Gas sector on the European index
Slide 36: Annex
Annex 9
Slide 37: Repsol 2Q and 1H 2015 Results
Annex REPSOL 2Q and 1H 2015 RESULTS (*) (Unaudited figures) % Change January - January - % Change Results (€ Million) Q2 2014 Q1 2015 Q2 2015 Q2 15/Q2 14 June 2014 June 2015 2015/2014 Upstream 145 (190) (48) - 400 (238) - Downstream 162 534 439 171.0 452 973 115.3 Gas Natural Fenosa 159 122 105 (34.
Slide 38: Repsol 2Q and 1H 2015 Results: economic and operational data
Annex REPSOL 2Q and 1H 2015 RESULTS (*) (Unaudited figures) % Change January - January - % Change Economic data (€ Million) Q2 2014 Q1 2015 Q2 2015 Q2 15/Q2 14 June 2014 June 2015 2015/2014 EBITDA 1,025 962 1,421 38.6 2,202 2,383 8.2 EBITDA CCS 1,018 1,174 1,297 27.4 2,283 2,471 8.2 NET CAPITAL EXPE
Slide 39: Operating income by segment and business area
Annex REPSOL 2Q and 1H 2015 RESULTS (*) OPERATING INCOME BY SEGMENT AND BUSINESS AREA (Unaudited figures) QUARTERLY DATA JANUARY - JUNE € Million Q2 14 Q1 15 Q2 15 2014 2015 UPSTREAM 216 (136) (46) 657 (182) Europe, Africa & Brazil 69 - (14) 262 (14) South America 280 87 118 565 205 North America 10
Slide 40: Adjusted net income by segment and business area
Annex REPSOL 2Q and 1H 2015 RESULTS (*) ADJUSTED NET INCOME BY SEGMENT AND BUSINESS AREA (Unaudited figures) QUARTERLY DATA JANUARY - JUNE € Million Q2 14 Q1 15 Q2 15 2014 2015 UPSTREAM 145 (190) (48) 400 (238) Europe, Africa & Brazil 58 (69) 14 151 (55) South America 177 27 60 365 87 North America
Slide 41: EBITDA by segment and geographical area
Annex REPSOL 2Q and 1H 2015 RESULTS (*) EBITDA BY SEGMENT A ND GEOGRA PHICA L A REA (Unaudited figures) QUARTERLY DATA JANUARY - JUNE € Million Q2 14 Q1 15 Q2 15 2014 2015 (1) UPSTREAM 643 281 622 1,359 903 Europe, Africa & Brazil 103 59 107 335 166 South America 378 174 274 750 448 North America 19
Slide 42: Tarragona Refinery Jetty
Tarragona Refinery Jetty Investor Update September 2015