Repsol : 28/07/2016 Webcast 2Q2016

WEBCAST - CONFERENCE CALL‌‌‌‌‌‌‌‌‌‌‌‌

Second Quarter 2016 Results

July 28th, 2016

© Repsol Investor Relations

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© REPSOL, S.A. 2016

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This document contains statements that Repsol believes constitute forward-looking statements which may include statements regarding the intent, belief, or current expectations of Repsol and its management, including statements with respect to trends affecting Repsol's financial condition, financial ratios, results of operations, business, strategy, geographic concentration, production volume and reserves, capital expenditures, costs savings, investments and dividend payout policies. These forward-looking statements may also include assumptions regarding future economic and other conditions, such as future crude oil and other prices, refining and marketing margins and exchange rates and are generally identified by the words "expects", "anticipates", "forecasts", "believes", estimates", "notices" and similar expressions. These statements are not guarantees of future performance, prices, margins, exchange rates or other events and are subject to material risks, uncertainties, changes and other factors which may be beyond Repsol's control or may be difficult to predict. Within those risks are those factors and circumstances described in the filings made by Repsol and its affiliates with the Comisión Nacional del Mercado de Valores in Spain and with any other supervisory authority of those markets where the securities issued by Repsol and/or its affiliates are listed.

Repsol does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that the projected performance, conditions or events expressed or implied therein will not be realized.

In October 2015, the European Securities Markets Authority (ESMA) published the Guidelines on Alternative Performance Measures (APM), of mandatory application for the regulated information to be published from 3 July 2016. Information and disclosures related to APM used on the present Q2 2016 Webcast Presentation are included in Appendix I "Alternative Performance Measures" of the Interim Management Report

© for the six-month period ended 30 June 2016 2

Second Quarter 2016 Results

1. Progress of the Strategic Plan

2. Market Environment and operational highlights

3. Quarterly and financial results

4. Conclusions

   ©

   Progress of Strategic Plan 1

   Progress of Strategic Plan

   Update

   • Challenging macro scenario

   • Results in line with strategy

   • UPSTREAM

     • Lower commodity prices compared to 2Q15

     • Increase in production volumes

     • Lower exploration expenses

   • DOWNSTREAM

     • Maintenance at Cartagena and Tarragona refineries  Capacity Utilization

     • Strong Chemical business

     • Higher contribution from Commercial businesses

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Strategic Commitments Follow up

Efficiency & Synergies Program



Investment Flexibility



Divestments & Management Portfolio



1. Includes projected proceed on agreed transactions and other operations.

2. 2016 Annual Budget.

   Target	1H16
   CF Neutrality BE ($/boe) (3)	~40	~40
   E&P FCF BE ($/boe)	~65	~65

   Value & Resilience

   

3. FCF after interests and dividends (0.5€/share out of 0.8 €/share expected for this year)

   Target	Actual
   Investment Grade	Maintain	Maintain

   Finance Commitments

   

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   2

   Market environment and

   operational activity

   Market environment Brent - $/boe

   50,00

   45.5

   40,00

   33.9

   30,00

   20,00

   10,00

   1Q 2016

   2Q 2016

   0,00

   Jan Feb Mar Apr May Jun

   Exchange Rate - $/€ Henry Hub - $/Mbtu

   1,00

   1,05

   1.10

   1,10

   3,00

   2,50

   2.0

   2.1

   2,00

   1,15

   1,20

   1Q 2016

   2Q 2016

   1.13

   1,50

   1,00

   1Q 2016

   2Q 2016

   © Jan Feb Mar Apr May Jun

   Jan Feb Mar Apr May Jun 8

   Operational Activity

   Production

   +33%

   (+) Ramps-ups of:

   • Cardon IV (Venezuela)

     525*

     kboed

     697

     kboed

   • Sapinhoa (Brazil)

(+) Higher contribution from Gudrun (Norway)

(+) Higher production in Peru

* TalIsman production included since May 8th

Partially offset by:

-2%

(-) Shut-down of the Varg field (Norway)

714

kboed

697

kboed

(-) Maintenance work in T&T

(-) Increased royalties do to higher prices in South East Asia PSCs

9

©

Development projects

Sapinhoá & Lapa

Brazil

• Sapinhoá: Ramp-up of the second FPSO is expected in second half of 2016

• Lapa: First oil is expected in 3Q16 (ahead of schedule).

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  Operational activity

  Development projects

  MonArb & Flyndre/Cawdor UK

   First oil expected in the first half of 2017

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  Operational activity

  Development projects

  Marcellus

  USA

  • Higher production YoY.

  • Cash breakeven close to $2/Mbtu

  • Cash generative at current prices

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