Repsol Sa · BME:REP
Repsol Sa — Investor Presentation (May 2015)
36 slides from Repsol Sa's investor presentation, May 2015
Slide 1: Investor Update May 2015
Investor Update May 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. Upstream 3. Downstream 4. Gas Natural Fenosa 5. Financial Position 6. Environmental, Social & Governance 7. Annex © 3
Slide 4: Company Overview
Company Overview 1 4
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 %(*) 8.89 % Caixabank Sacyr 6.03 % Temasek Institutional Free Float Free Float Retail Shareholders 58.48 % 14.91% Total number of shares: 1,374.69 million (*) On 11th November 2013 CaixaBank launched a €594m 3-year Mandatory Exchangeable Bond into Repsol
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” PERFORMING BUSINESSES • Optimization & Efficiency Profitability • Maximizing integration SHAREHOLDER PORTFOLIO Sustainability RETURN MANAGEMENT • Attractive value proposal • Reinforcing Upstream
Slide 9: Upstream
Upstream 2 9
Slide 10: Acquisition of Talisman Energy
Acquisition of Talisman Energy Transformational deal, upgrading Repsol's portfolio and competitive advantage achieving global scale and diversification, greater exposure to Upstream, leading growth platforms and enhanced capabilities to create value. Growth Greater exposure to Upstream, leading grow
Slide 11: Acquisition of Talisman Energy: Price and Trading Multiples
Acquisition of Talisman Energy Price and Trading Multiples The transaction offers competitive multiples for Repsol, especially considering the long term value of the asset EV/EBITDA 2015E (x) [1] EV/2013 1P & 2P reserves ($/boe) [2] 6 18 5 15 4 12 3 9 5.0 15.4 2 6 10.4 1 3 0 0 Talisman at US$ 8 Tali
Slide 12: Repsol's reserves and production
Upstream Repsol's reserves and production Increase in production, reserves, operated assets and OECD production Reserves 1P/2P (MBoe) Production 2014 (Kboepd) +47% +85% 1P 2P 355 656 1,539 2,384 2,270 3,537 Before deal After deal Before deal After deal Operated production (%) OECD production (%) +23
Slide 13: Greater exposure to Upstream, leading growth platforms
Upstream Greater exposure to Upstream, leading growth platforms Repsol's growth will be accelerated by an extensive list of development opportunities North America Africa & Europe Eagle Ford Marcellus Duvernay Mid-continent Reggane MonArb (USA) (USA) (Canada) (USA) (Algeria) (UK) EXPLORATION WI: ~ 3
Slide 14: Diversification: significant enhancement of Repsol's upstream business
Upstream Diversification: significant enhancement of Repsol’s upstream business geographic diversification Before Deal After Deal Upstream WHOLE COMPANY 10% 7% Downstream Upstream 1 15% 11% GNF 37% Downstream Corporate GNF 1 55% 27% Capital Employed in 38% Corporate Upstream from 38% to 58% Capital
Slide 15: Value Creation: Deal provides enhanced capabilities to create value
Upstream Value Creation: Deal provides enhanced capabilities to create value What Talisman brings to Repsol World class explorer Experienced production operator Deep water exploration experience and portfolio Unconventional experience and portfolio Broad international portfolio Broad international p
Slide 16: A proposal for strong value creation
Upstream A proposal for strong value creation Exploration Capex: Cost Efficiency in our 2015 (E) USD 1.2bn/year Operations: INVERSIONES Including drilling, G&A and G&G 1Q15: Cost reduction of 5.7%. year on year in the upstream operating cost (*) 35 % Exploration Capex reduction VALUE CREATION New or
Slide 17: Exploration
Exploration Repsol standalone plans to drill 21 exploratory wells in 2015, with a great percentage of low risk appraisals Norway Alaska Russia Canada Romania Spain Algeria GoM Libya Peru THREE YEAR ROLLING Angola Brazil AVERAGE: RRR: 198% Reserve Replacement Ratio 2010 131 % 2011 162 % 2012 204 % 20
Slide 18: Downstream
Downstream 3 18
Slide 19: 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 20: 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 in Europe (Repsol vs the sector) Presence in a premium market for refining Completion of expansion and c
Slide 21: Improved competitiveness of refining assets
Downstream Increased competitiveness of Downstream business Improved competitiveness of refining assets Oil pipeline Repsol Oil pipelines CLH % FCC equivalent CORUÑA BILBAO 100% 1Q 2Q 3Q 4Q 80% TARRAGONA 60% 40% 20% PUERTOLLANO CARTAGENA 0% 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 [2] Europe Mbpd
Slide 22: Maximizing returns from the business and capital discipline
Downstream Maximizing returns from the business and capital discipline In 1Q15 Results conference call, Repsol raised its EBITDA CCS forecast (ex G&P) for 2015 up to 2.8 – 3 € bn R&M EBITDA CCS R&M CAPEX €bn/year €bn/year (*) 2014 2015E 2014 2015E Higher margins largely derived from Downstream inves
Slide 23: 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 24: Gas Natural Fenosa
Gas Natural Fenosa P 4 gasNatural y fenosa
Slide 25: 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 Leading Utility and growth in Latin America Dividend Yield Strong cash stream for Repsol
Slide 26: Financial Position
Financial Position 5 26
Slide 27: Net debt pro forma post Talisman deal
Financial Position Net debt pro forma post Talisman deal Resilient credit metrics under stress scenarios Net Debt Estimated Post Deal Repsol remains fully committed with keeping the investment grade 27
Slide 28: 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 29: Shareholder remuneration
Financial Position Shareholder remuneration 2015 maintaining our competitive shareholder remuneration at current levels with scrip option (DY) Dividend Yield (1) : (Gross Dividend during Year / closing price at the end of the period) (DY)+13%(2) € 1.00 (DY)+5.7% € 0.485 € 0.96 € 0.477 € 0.484 (3) 1.
Slide 30: Environmental, Social & Governance
Environmental, Social & Governance 6 30
Slide 31: Corporate Responsibility Model: Our commitments
Environmental, Social & Governance Corporate Responsibility Model: Our commitments Zero Accidents Embedded safety culture Excellence in spill prevention Policy on respect for human and response rights based on the UN Guiding Optimized water&waste Principles on Business and management Human
Slide 32: Monitoring and control of the sustainability indexes
Environmental, Social & Governance Monitoring and control of the sustainability indexes The consistency and commitment of our work has led to recognition of the company's firm commitment to continually improving its performance. Our Company has won recognition for its energy efficiency and carbon ma
Slide 33: Annex
Annex 7 33
Slide 34: Repsol Standalone 1Q 2015 Results
Annex REPSOL STANDALONE 1Q 2015 RESULTS Note: Repsol Group made the decision in 2014, prompted by the business reality and in order to make its disclosures more comparable with those in the sector, to disclose as a measure of the result of each segment the recurring net operating profit at current c
Slide 35: Repsol Standalone 1Q 2015 Results
Annex REPSOL STANDALONE 1Q 2015 RESULTS 35
Slide 36: Investor Update
Investor Update May 2015