presentacion esg 2014 - repsol · namibia, angola: offshore 2. main challenges in repsol ......

REPSOL

Growing from our strengths in a sustainable way

Repsol S.A.EM Division of Economy, Finance and Development. 7/01/2015

2

Disclaimer

ALL RIGHTS ARE RESERVED

© REPSOL, S.A. 2014

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 means without

the prior written permission of Repsol, S.A.

This document does not constitute an offer or invitation to purchase or subscribe shares, in accordance with the provisions of the

Spanish Securities Market Law (Law 24/1988, of July 28, as amended and restated) and its implementing regulations. In addition,

this document does not constitute an offer of purchase, sale or exchange, nor a request for an offer of purchase, sale or exchange

of securities in any other jurisdiction.

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, the Comisión Nacional de Valores in

Argentina, the Securities and Exchange Commission in the United States 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.

The information contained in the document has not been verified or revised by the Auditors of Repsol.

© 3

1. Company Overview

2. Main challenges in Repsol

3. Our commitments with sustainability

4. Sustainability plans

5. Corporate Governance

6. Annexes

Main KPI Evolution

Repsol’s Technology applied to operations

Repsol’s R&D: anticipating the future

Integrated Risk Model

Main Sustainability Indexes and Initiatives

Repsol S.A.

Company

Overview

5

1. Company Overview: Repsol Today

Note: Additionally our Marketing activity extends to South East Asia

Main challenges

in Repsol

7

Indigenous communities in Bolivia, Perú, Ecuador, Alaska and Colombia

Policy

Due dilligence

Grievance mechanisms

Non-contacted indigenous tribes procedures

Ecuador, Peru, Bolivia, Alaska &

Colombia

First O&G company operating in Latin America with an official policy

explicitly supporting indigenous rights protected by ILO Covenant 169,

including right to free, prior and informed consultation (FPIC)

Team of 40+ people dedicated to dialogue and relations with

indigenous communities, 35% women, in Peru, Bolivia, Ecuador, USA

and Colombia.

UNPD entered into in Colombia: intention to develop a master

agreement and to apply it to the rest of indigenous communities.

Signed agreements in most areas, ongoing dialogue and consultation

with all communities, currently no major disagreements.

Controversies focused on indigenous tribes living in isolation: working

with special preventive measures in Block 88 Peru.

Peru grievance mechanism pilot finished to update company

guidelines.


Reshaping portfolio Balance of exposure to OECD countries : US, Canada, Norway,

Europe

Custom made approach

Russia: Low profile, local alliances

Latin America: work closely with local governments

North Africa: limited activity to maintain current position

Namibia, Angola: offshore


Offshore deepwater safety

Political risk

Non-operated run by experienced operators: Petrobras, Chevron,

BHP, Statoil, Eni

Members of: Oil Spill Response (OSR), Joint Industry Project (JIP)

project of IPIECA and OGP, and Global Well Containment Response

Strategy

Strict asset integrity procedures

Emergency response in place

Deepwater Offshore

Brazil, GoM, Africa, Canada and others

8

Artic operations

Artic

Norway/Barents Sea: Not qualified as arctic operations. North-sea-

type operations

Alaska North Slope: onshore activity

Russia: onshore activity

Alaska Chukchi Sea: We will not carry forward any operation

Beaufort Sea: no operations in the medium term


9

Our commitments

with sustainability


11

Commitment to safety

Excelence in environmental management

Promoting a low carbon strategy

Ethical conduct

Anti-corruption

Transparency

Respect for human rights

1.19 1.00 0.60 1.02 0.84 0.55

1.09

0.91

0.59

2011 2012 2013

12



Our objective : zero accidents

Lost time injury frequency rate Total recordable injury frequency rate

Sistematic Risk Management

Proper management of our facilities risks from design to abandonment.

Operations control through work permits and identification of critical elements of our

facilities.

Special focus on deep water drilling: facilities integrity and design and proper response

procedures.

Own Employees

Contractors Employees

Combined

Zero fatalities in 2013

3,56 3,39 2,59 0

0,5

1

1,5

2

2,5

3

3,5

4

2011 2012 2013

13



Our objective : zero accidents

Focus on our main accidentability sources

Incident and near-misses management: lessons learnt and procedure adjustments.

Audits: 502 audits performed in 2013.

Certifications: 54 out of 65 facilities certified through OHSAS 18001 in 2013.

Target: “Changing the culture of Safety and Environment through the people

leading the organization, whose behavior should serve as an example for all the

employees”

14

Our objective : Embedded safety culture



2012-2013

• HSE Leadership Plan, based on three pilars:

• Training in safety culture: over 3,000 people have attended any of the 120 editions held in 11 countries. Training programs tailored to each business and aimed at intermediate managers and other groups.

• Internal Communication: Awareness of the 8 defined behaviours leading HSE.(*)

• Development: Mainstreaming of HSE aspects as a criteria in all development tools of the company.

2014

Progress

• Culture Project:

• Definition of Repsol´s HSE Culture attributes and of maturity levels to be achieved.

• Development of a methodology to diagnose the HSE culture level.

• Diagnosis HSE 2014 Leadership: Dupont Survey • Improvement in the results: RSC (Relative Strength Culture) 15 points higher than 2010 results.

Next Steps

• Action Plan 2015-2020 to diagnose culture levels throughout the operational sites.

• Defining action plans based on the diagnosis results tailored to each operational site .

(*) 1)Individual responsibility 2) Example 3) Incidents are avoidable 4)Leaders in safety 5)Enforce by recognition 6) Decision-

making driven by safety 7) Be systematic with improvement 8) Immediate correction.

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Our objective : zero spills

Excellence in spill prevention and response

Various measures have been implemented to prevent accidental spills, both in the

upstream and downstream divisions

Work was also carried out to develop an early detection system for oil spills, using

proprietary technology that uses advanced detection software and complex

algorithms to interpret spill signals.

37 29 14 0

5

10

15

20

25

30

35

40

2011 2012 2013

Number of Hydrocarbon Spills (1)

(1) Includes spills in excess of one barrel that reach the environment (either the water or land on which we perform our operations)

2013 Milestones:

• To bring internal standards into line with international best practices

• To create a group of experts in emergency management and establish the

functions and roles played by the new multidisciplinary emergency response team

• To establish emergency response rooms and centers in Madrid, Houston, Lima

and Río de Janeiro

During 2014 the scheduled training sessions and drill exercises have been carried out.

Emergency response: Global critical management program

16


Excellence in environmental management

Corporate

Support Level

Business

Support Level

Facility

Support Level

Crisis Management

Incident Response & Business Continuity

CMT

BST

IMT TRT

2012-2013

• Development of a proprietary tool for identifying risks associated with water management assessing aspects of both the environment and internal management at each site, based on the GEMI Local Water Tool.

2014 Progress

• Consolidation of the tool and development of a water management map (baseline) for the activities of refining, chemicals and upstream.

• Diagnosis of the situation of the operational sites and assessment of associated risks.

Next Steps

• Preparation of the Action Plan for improving water management for the period 2015-2020.

17



Our objective: Application of best practices for water management

NEW APPROACH:

Water as a strategic resource

Strengthening local management with a global and homogeneous vision

Application of standards and best practices

New objective defined for the 2014-2020 period involving all our business

areas

18



Our objective : reduce waste by 14,5 kt by 2020

2012-2013

• 2014-2020 objetive definition:

• Company’s waste map redesigned.

• Downstream activities: 14.5 kilotons reduction.

• Upstream activities: Implementation of Environmental Performance Practices (EPP), mainly aimed to the management of drilling cuttings

2014

Progress

• Fulfillment of the actions aimed to reduce the riskiness of the waste that we generate.

Next Steps

• Compliance and revision of the potential reduction of some of the actions identify for the periods 2015-2020.

• Implementation of good practices which derive from the action plan in other parts of the Company where the implementation is viable: possibility of implementing at Peru “La Pampilla” refinery some of the actions already adopted in Spain.

19


Excellence in environmental management

Threats to biodiversity in all of our assets and upstream projects have been

evaluated:

Our objective : biodiversity action plans implemented on all sensitive areas

2012-2013

• Development of a methodology for qualitative assessment of risks to biodiversity in assets and projects.

• Starting the BAP (Biodiversity Action Plans) for Caipipendi area (Bolivia).

• Definition of risk indicators for biodiversity and implementation of BAPs.

• BAP in Peru, Ecuador Trinidad & Tobago and Bolivia with 96% of implementation.

• 100% of E&P sites have been evaluated and 44% qualified with some type of biodiversity risk.

2014

Progress

• Pilot ecosystem services in the area of influence of Sagari (Block 57, Peru):

• Identification of impacts and dependencies of the Company and the communities on ecosystem services.

• Identification of priority ecosystem services, risks and opportunities, and definition of the action plan.

Next Steps

• Inclusion of ecosystem services criteria into the management system.

20



Proactive development of new technologies

Repsol early detection of oil spills: detects oil spills without human intervention. System

working in offshore Spain rigs.

Asphalt recycling and low temperature installation technology diminishes waste and

emissions

At Repsol, we develop lubricants from renewable, biodegradable and non-toxic sources

as a way of reducing our environmental footprint.

Optimize heating oil to obtain a product better-suited to the most advanced boiler

technologies reducing emissions by 30%

21



Our objective : to reduce 1,9 milion tonnes of CO2 by 2020

2012-2013

• Definition of a new target: 1.9 million tons of CO2 reduction emissions for 2014-2020 (2010 baseline).

• 100 investments and operating improvement measures were verified across all the company’s operations in 2013 resulting in a reduction of 5 million GJ.

• ISO 50001: In 2013, Cartagena, Tarragona, and La Pampilla (Peru) refineries obtained certification, as did the chemicals unit of the Puertollano industrial complex.

2014 Progress

• Repsol continues implementing a global energy management system (EnMS) for the whole company under ISO 50001 standard. Thereby seven facilities have been verified so far, including Block 16 an Upstream facility located in Ecuador (January 2014).

Next Steps

• Repsol is developing a plan in order to identify and mitigate methane emissions in its operating assets.

• The company continues on the track to verify the entire GHG inventory following ISO 14064 standard.

• An EnMS plan is being spread through our industrial facilities.

• Focused on the identification and development of energy efficiency initiatives and low emissions technologies.

Achievement of our 2006-2013 target to reduce CO2 emissions by 2.5 million

tons. The company comfortably outstripped the objective met in 2012 due

the reductions accumulated over those years, attaining a reduction of 3

million tons of CO2 at the end of the period



Non-fossil fuel energy initiatives

Biofuels

Transport electrification: 85 new charging points in 2013

Renewable electricity generation

Wind Power

Repsol Nuevas Energías UK developes three offshore

wind energy projects at Scottish coast:

o Inch Cape through the company Inch Cape Offshore

Limited (ICOL) Total installed capacity of up to 784 MW

The plant will have a maximum of 110 turbines, in a

total area of 150 km2.

Consent obtained from the Marine Scotland in

October 2014

o Moray Offshore Renewables Ltd (MORL) Installed capacity of up to 1,116 MW, generated by

186 turbines

The total area is estimated to cover 295 km2.

Consent obtained from the Marine Scotland in March

2014

o Beatrice Offshore Windfarm Limited (BOWL) Total installed capacity of up to 750 MW, generated

by 140 turbines, to be installed over an area of 132

km2

Consent obtained from the Marine Scotland in March

2014

Investment contract obtained in April 2014

Transport Electrification

IBIL, the company 50% owned by Repsol Nuevas

Energías, and EVE (Basque Energy Board), continues

to develop a charging network for electric vehicles in

Spain. IBIL is the first recharging operator for electric

vehicles registered with the National Energy

Commission that provides private recharging services

(in residential and company garages), as well as public

(in public car parks, shopping centers and oil stations).

Nowadays, IBIL has implemented a control center to

monitor and manage all aspects of infrastructure and

business.

22

In Repsol we believe that two global goals have to be pursued:

To mitigate climate change and

To provide access to affordable energy in order to support

economic growth and development

We set up and deploy ambitious energy efficiency programs to reduce

energy consumption and GHG emissions as one of the key elements of

our strategy. These programs pursue long term targets which has been

made public in order to facilitate their progress by the stakeholders.

We are convinced that innovation and technological development are

essential for ensuring reliable and sustainable energy supply in the long

term.

23


Our position on Climate Change

Repsol collaborates pro-actively as a member of the Climate Change Working Group of

IPIECA (the global oil and gas association for environmental and social issues).

Concerning the concept of stranded assets we would like to highlight some key points:

24


Our view on Stranded assets

Reserves differ from resources: Oil and

gas company valuations emphasize

proven and commercial reserves that will

be produced over the next 10 to 15 years.

Not all fossil fuels are the same: Oil, coal

and gas are different in key aspects

relevant to the unburnable carbon and

stranded assets concepts.

Developing and deploying innovative

technology: Oil and gas companies will

continue to play their part in discovering

and developing technologies to meet the

challenges of supplying energy to billions

of people, while reducing CO2 emissions.

Repsol integrates CO2 risk into its business planning

Focus on energy efficiency and having natural gas as 65% of total reserves will ensure a

robust portfolio in climate constrained future

Ethics and Conduct Regulation

On line training available to employees

Ethics Committee

Channels in place to enable all employees or third parties to submit queries relating to the Ethics and Conduct Regulation and report any potential incidents of non-compliance

in a fully confidential manner

Audit and Control Corporate Division

Supports non-compliance investigation

Evaluates control processes efficiency

Anti-corruption policy

Applies to employees , partners, contractors and suppliers

Crime Prevention Model

A formal framework of regulations, procedures and controls that provide a means of reasonably ensuring that the risks of crimes being committed are suitably identified,

monitored, evaluated and controlled

25


Anti corruption/ Ethical conduct

Repsol is committed to fighting against corruption in all its forms and establishing

mechanisms to prevent corrupt or fraudulent activities.

Support for initiatives to promote financial transparency in the international extractive sector and in the countries where we operate

We support EITI since it foundation in 2003:

We belong to the Peru chapter and cooperate with Trinidad Tobago working group.

Adherence to the Code of Best Tax Practices, evidencing our opposition to the use of non-transparent tax structures

Adherence to the register of EU lobbies, which is part of the European Commission’s transparency initiative

Continuous improvement on remuneration disclosure

Disclosure of engagement report

26


Transparency

Transparency is a key value for Repsol and a guarantee of the company’s ethical

performance, its commitment to ensuring that all financial and non-financial

information is complete and accurate, and its willingness to engage in dialogue with

all stakeholders.

Policy on respect for human rights

Based on the UN Guiding Principles on Business and Human Rights

Development of internal guidance for:

Due diligence processes

Grievance mechanisms

Training : 11,300 hours of training to 3,694 employees since 2012 in human rights.

1,000 hours of direct training to 250 employees in 2014

27



28



Monitoring

and control

Developing

KPIs

Follow-up

Supporting BU

in the

implementation

process

3 projects

ongoing

Several

forecasted

projects

Developing

internal

guidance

on how to

carry on

HRIA

4 HRIA projects

concluded with

the support of

specialized third

parties

HUMAN RIGHTS IMPACT ASSESSMENTS (HRIA)

Especific

Human Right

Impact

Assessment

projects

Pilot projects

to get

learnings and

experience

TRAINING AND AWARENESS (communication campaigns, specific workshops in 4 countries in 2014 and new workshops forecasted for 2015

Integrating Human

Rights into

Environmental

Impact Assessment

Processes

ESHIA standard

which includes

HRIA approved

Mandatory

worldwide

For all BU

2011 2012 2013 2014 2015

29



Monitoring

and control

Supporting BU

in the

implementation

process

Developing

guidance on

how to implement

an operational-

level

grievance

mechanism

OPERATIONAL-LEVEL GRIEVANCE MECHANISMS (GM)

Pilot project

in Peru in

cooperation with

IPIECA Review

an existing

GM in

Bolivia

TRAINING AND AWARENESS (communication campaigns, specific workshops in 4 countries in 2014 and new workshops forecasted for

2015)

Identification process

of the number of

existing grievance

mechanisms

2011 2012 2013 2014 2015

1 project of

developing a new

GM ongoing

Additional

projects of

improving the

effectiveness of

the GM forecasted

Develop a questionaire for the diagnosis

of the effectiveness

Improving the effectiveness of the

existing grievance mechanisms in Repsol

E&P operations

38

operational-

level

grievance

mechanims

identified

Developing KPIs

Developing an IT

system for Repsol

Group

Follow-up

30



MAJOR MILESTONES REGARDING INDIGENOUS COMMUNITIES

2008 2009 2010 2011 2013 2014

Policy

approval

Developing

Standard

Social

Performance

Reviews in

Perú &

Bolivia

Publicly

Committing

Action Plan

Social

Performance

Review in

Ecuador

Civil Society

field trip to

block 16

Ecuador

2012

Long-term

agreement

in Bolivia

Agreement

with United

Nations

Development

Program

in Colombia

Free, Prior

Informed

Consultation

process

in

Colombia

Long-term

agreement

in Perú –

block 57

Internal auditing

in Perú –

community

relations

Disseminating internally and externally and including provisions in contracts

Sustainability

Plans

32

Added complexity: o Climate change

o Global Stakeholders

o Human rights

o Supply chain


How to widen the view?

How to include all

stakeholders?

How to involve the

whole organization?

Operation

Influence area

33

CSR Model

CORPORATE COUNTRY OPERATION

Stakeholders’

expectations on Repsol

List of actions:

Sustainability plans

Aligning performance to

expectations

CSR Committees: Include multidisciplinary executive members

which make decisions on the actions to close

the gap with expectations

which compose the sustainability plan

3 levels of implementation:


34


Progress

Actions are related to closing the gap in a variety of topic:

5 5 13 15

61

278

427

574

0

2

4

6

8

10

12

14

16

0

100

200

300

400

500

600

700

2011 2012 2013 2014

Nº of committees

Nº of actions

Sustainability plans approved in the year – 2013 - Nº of Actions

Governance 60

Human Rights 53

Labor Practices 96

Environment 99

Fair operating practices 101

Consumer issues 21

Community involvement and development 144

Total 574

35

Corporate

Governance

36


Shareholder Structure

6.41%

Total number of shares as of November 2014: 1,350.27 million.

11,89

9,05

6,14

72,92 Free Float

11.89

9.05

6.14

72.92

Caixabank Sacyr Temasek Free Float

(*) On 11th November 2013 CaixaBank launched a €594m 3-year Mandatory Exchangeable Bond into Repsol shares (2.5% of share capital)

(*)

12 % Retail

37


Board of Directors

6.41%

Directors may not hold more than 4

mandates in other listed companies

Repsol currently has no overboarded

Directors

Presence of External Directors

The majority of the Board (80%) consists of External Directors

Market Practice: The tendency is to decrease the presence of Executive directors

Rotation of independent

Directors

None of the Independent Directors have been on the Company’s board for more than 12 years

Implementation of the international standard (12 years cap) in our legal framework

% of Board independence

At least 1/3 of the Board is independent

Market Practice: Unified Good Governance Code recommends having 1/3 of the Board Independent

% of Committee

Independence

Audit and Control Committee: Composed exclusively of independent directors

Nomination and Compensation Commitee: Majority independent / Chairman is independent

Strategy, Investments and CSR: Composed exclusively of external directors

The company's Board of Directors recognizes that a solid commitment to corporate governance

is critical to establishing trust and credibility with investors.

38


Board of Directors

Gender Diversity

Female directors make up 8.33% of the Boards External Directors

Repsol has committed to increase the proportion of women in leadership positions in Spain to 29% by 2020

Repsol’s Board recognizes that the presence of foreign Directors can add value to the decision-taking process

In line with the multinational nature of Repsol, the Board is committed to include foreign born members with solid international experience, such as Henri Philippe Reichstul (Brazil) and Rene Dahan (Dutch)

Geographical diversity

Separated roles of CEO

and Chairman

The roles of the CEO and Chairman have been separated as of April 30, 2014 with the appointment of Mr. Josu Jon Imaz as CEO.

In addition: 1/3 of the Board consists of Independent Directors and all Board committees, with the exception of the Executive Committee, are composed exclusively of external Directors only.

Transparency on

remuneration

The Company continues improving the disclosure on the remuneration issues and the implementation of international best practices.

The Annual Remuneration Report is submitted for consultation vote to the General Shareholders Meeting. On 2014 AGM the Report was approved by the 96,9% of the share capital present on the meeting.

Since 2009 to 2014 the increase of the fix pay for Directors has only increased 2.5% in total

The Company has committed to apply the limit of 2 years severance payment when proposing the appointment of new Executive Directors.

Separated CEO/Chairman, Diversity and Transparency

40

Annexes

Main KPI Evolution

Social 2011 2012 2013

Repsol personnel (number) 23,623 23,995 24,214

Accident frequency rate (Repsol and contractor staff) [10] 1.1 0.9 0.6

Training in safety and occupational health (hours) 139,915 217,899 208,891

Deaths (number) 2 4 0

Personnel covered by collective agreement (percentage) 58 57 57

Women staff (percentage) 31 32 32

Women in management posts (percentage) 14 15 15

Women on the Board of Directors (number) 2 2 2

Total turnover rate (percentage) [11] 5 8 7

Investment in training (millions of euros) 16.38 19 19.63

Training per employee (hours) 40 42 40

Repsol staff who receive performance evaluations (percentage) 36 38 60

Disabled persons (number) 462 543 654

Teleworking staff (number) 716 1,037 1,222

Incidents of discrimination (number) 1 3 2

Voluntary social investment (millions of euros) 24.87 25.05 24.58

Local purchases as percentage of total purchases 84.59 83.4 85.3

Evaluations of the performance of contractors and suppliers (number) 1,238 940 1,261

Audits on contractors and suppliers (number) 132 144 171

Expenditure on private and public security (millions of dollars)[12] 86.9 40.62 44.11

Litigation due to allegations of anticompetitive behavior (Number of cases initiated) [13] 0 0 2

Communications received under the Ethics and Conduct Regulation (number) [14] 6 14 8

Dismissals for failure to comply with the Ethics and Conduct Regulation (number) 81 88 69

[10] Measured as the number of lost-time accidents and fatal accidents accumulated during the year, per million hours worked.

[11] Total number of persons leaving the company/total personnel on 31 December of each year. Data for 2011 have been restated in relation to the expropriation of YPF.

[12] Data for 2011 includes expenditure corresponding to YPF, and are therefore not comparable with those of 2012 and 2013.

[13] In 2012, no penalty proceedings were conducted on account of anticompetitive behavior by Repsol Group companies, for an amount equal to or greater than five million euros. For further details on

the 2012 data, see the Annual Consolidated Accounts Report, Note 18, “Current and non-current provisions”, Note 35, “Liabilities, contingencies and commitments” and Note 36, “Information on the

environment”.

[14] Data includes only communications related to the Ethics and Conduct Regulation received through the communication channel with the Ethics Committee.

Environmental 2011 2012 2013 Comments

Atmospheric emissions (metric tons)

SO2 (2) 50,131 36,949 34.263

In 2013 our SO2 emissions decreased by 7% compared to the previous year. Refineries and chemical plants were the

most important contributors. Sines reduced its emission in a 50%.

NOx 32,922 33,566 37.155 Emissions of NOx increased by 10% due to an increase in upstream drilling activities

NMVOC (2) 41,809 42,885 41.755

CO 8,804 8,696 10.283

Particulates 2,235 1,655 1.807

TOTAL 135,901 123,751 125.263

Water management (metric tons)

Fresh water withdrawn 61,156 56,243 60.414 An increase of a 7% in the water withdrawn due to the increase in the E&P activity

Discharged 39,728 38,925 40.100

Reused 6,971 8,375 9.473 13% increase in 2013, Main imptovement reached in refineries

Produced 56,758 58,556 60.578

Injected 51,976 53,678 57.831

Discharges (metric tons)

Hydrocarbons 151 259 460

In the second part of 2013 Trinidad and Tobago had problems with the water treatment plant. Because of this, there was

an increase in this parameter.

Suspended solids 1,594 1,581 1.265

Suspended solids and chemical oxygen demand decreased mainly in Tarragona chemical plant (maintenance shutdown

in semester 2)

COD 10,758 8,752 7.944

Suspended solids and chemical oxygen demand decreased mainly in Tarragona chemical plant (maintenance shutdown

in semester 2)

Waste management (metric tons)

Hazardous waste (3) 118,734 80,775 66.315

During 2013, the amount of hazardous waste treated decreased by 18% compared to 2012.. The commercial area has

developed succesfull plans to reduce its wastes. In 2013 , the amount of wastes included wastes from maintenance shut

downs (Puertollano) and conditioning plans of soils.

Non-hazardous waste 93,195 52.580 182.693

A strong increase in nonhazardous waste due to two factors:

• A conditioning plan of soils in La Pampilla refinery

• Dismantling activities in Petronor refinery.

Spills (4)

Number of hydrocarbon spills greater

than one barrel that reach the

environment

37 29 14

An important reduce in 2013 of both the number and the volume of the Hidrocarbon spills

Volume of hydrocarbon spills that reach

the environment (metric tons) 503 6,091 15

Environmental fines /sanctions (M€) (5) 0 0 0

1) In order to establish common bases for comparison over time, data for previous years have been adjusted in line with changes in the company's asset structure. The criteria for changing the baseline are included in oil-industry guidelines

(API/IPIECA/OGP). In March 2012, the Government of Argentina expropriated Repsol's majority holding in YPF, as a result of which 2012 inventories and those of previous years have been adjusted, eliminating the data from expropriated

facilities.

(2) For data on emissions from mobile sources, only those associated with own transport are included.

(3) Operational hazardous waste . Doesn´t include drilling wastes (cuttings and mud)

(4) We report spills greater than one barrel that have reached the environment.

(5)Arising from litigation or administrative proceedings finalized and paid in the year, with an amount equal to or greater than materiality thresholds set in the individual litigation letters of Group companies.

For further details on the 2012 data, see the Annual Consolidated Accounts Report, Note 34“Contingencies, commitments and Liabilities” and Note 36 “Environmental information”.

Annexes

Main KPI Evolution

41

42

Main Figures

Annexes

43

Main Figures

Annexes

Economic data (€ Million) 3Q 2013 2Q 2014 3Q 2014% Change

3Q14/3Q13

January -

September

2013

January -

September

2014

% Change

2014/2013

EBITDA 1.026 1.025 1.047 2,0 3.241 3.249 0,2

CAPITAL EXPENDITURES 716 860 961 34,2 2.112 2.549 20,7

NET DEBT 7.117 2.392 1.998 (71,9) 7.117 1.998 (71,9)

EBITDA / NET DEBT (x) - - 2,10 - - 2,17 -

MARKET CAPITALIZATION

Operational data 3Q 2013 2Q 2014 3Q 2014% Change

3Q14/3Q13

January -

September

2013

January -

September

2014

% Change

2014/2013

LIQUIDS PRODUCTION (Thousands of bbl/d) 135 122 141 4,7 145 131 (9,3)

GAS PRODUCTION (*)

(Millions of scf/d) 1.172 1.216 1.261 7,6 1.176 1.221 3,8

TOTAL PRODUCTION (Thousands of boe/d) 344 338 366 6,4 354 349 (1,5)

CRUDE OIL REALIZATION PRICE ($/Bbl) 89,0 87,8 84,3 (5,3) 89,7 85,9 (4,2)

GAS REALIZATION PRICE ($/Thousands scf) 3,8 4,0 3,6 (5,3) 4,0 3,9 (1,1)

DISTILLATION UTILIZATION Spanish Refining (%) 80,9 83,5 84,8 4,8 80,3 81,0 0,9

CONVERSION UTILIZATION Spanish Refining (%) 101,1 100,6 106,6 5,4 100,1 101,4 1,3

REFINING MARGIN INDICATOR IN SPAIN ($/Bbl) 2,6 3,1 3,9 50,0 3,0 3,6 20,0

As of September 30th 2014

25,385

44

Annexes

Repsol’s Technology applied to operations

Technology in E&P operations

Technology in Downstream

At Repsol we are continuously researching

into how to generate new products that meet

the needs of our customers and society as a

whole

Repsol Technology Center is the core where we focus our

R+D. More than 400 researchers work day after day at the

Repsol Technology Centre to improve on products and

preserve the environment

Kaleidoscope Project

The Kaleidoscope Project has been named one of the five most innovative projects in the world by the American Institute of Electrical and Electronics Engineers, a body known for following new technologies. It works 15 times faster than other technologies for seismic processing.

Sherlock Project

The Sherlock Project integrates knowledge of geology,

geochemistry and high-resolution analytical chemistry. Its

objective is to characterize the different elements of a

petroleum system in order to reduce the geological risk

and increase the exploratory success rate.

HEADS Project

Repsol has created the HEADS (Hydrocarbon Early

Automatic Detection System) safety system. It is the first of

its kind in the world and it can automatically detect

hydrocarbon leaks in the sea, with a response time of

under 2 minutes.

AutoGas Direct Liquid Injection

A new technology for transportation. The result of a development and implementation of a Repsol discovery, that enhance the sustainablity of fossil fuels in automotive industry by lowering CO2 emissions a 15%, whithout particle generation, meeting EU 2020 target of 95gCO2/km.

HVO

The introduction of this technology for hydrotreating vegetable oils enables the production of a renewable fuel in refinieries, meeting European specifications for this kind of product and improving economic sustainability in refining process.-

Excalibur Project

A methodology that improves field development where little

or no information is available, through 3D simulation and

patented mathematics algorithms.

Annexes

45

Repsol’s R&D: anticipating the future

At Repsol we believe that through research and innovation, with technology, we are able

to create a smart new energy model that anticipates the supply of sustainable and

competitive energy.

Reducing CO2 emissions by giving this gas

a use, is one of the objectives of the

research program. Replacing conventional

materials derived from crude oil by

secondary raw materials (CO2 byproduct of

refineries), to obtain CO2-based

polycarbonates.

Advanced biotechnology to develop a new

generation of biofuels from sustainable

energy crops and other micro organisms,

optimized for more efficient new engines.

Advanced R&D in electric vehicles and

energy storage, to be part of the

technological changes and anticipate

future strategies on electric mobility

We have developed a new generation of environmentally friendly

plastics for greenhouses, and are now developing technology* to

obtain plastics that repair themselves automatically and

independently after suffering damage, recovering their initial

aesthetic and mechanical properties.

The self-repairing plastics will give an important boost to

productivity in different sectors thanks to the maintenance savings

they will bring about, as well as environmental benefits, occupational

safety improvements and greater comfort for end users

*This technology is also being applied in the development of self-healing

asphalts

We are also involved in

R&D projects using

new materials like

graphene, to develop

new energy storage

models for

transportation.

Advanced technology in asphalts

designed to capture NOx emissions

from cars, in order to have cleaner air in

urban areas.

46

Annexes


FINANCIAL RISKS

Liquidity

Market

Counterpart

STRATEGIC RISKS

Macroeconomics

Geopolítics Competitors Regulation Partners

Image and reputation

Portfolio management

Innovation and development

Corporate governance

OPERATIONAL RISKS

Ethics and conduct

People and organisation

Information systems

Suppliers and contractors

Operational excellence

Project management

Accidents and singular events

Compliance

Our Company is exposed to numerous risks

which can influence the achievement of the

Strategic Plan.

47

Annexes


An Enterprise Risk Management (ERM) System creates certainty in order to attain the

goals of the Strategic Plan through a systematic approach to risk portfolio management.

ISO 31000: 2009 Risk Management

Principles and Guidelines on Implementation

Establishing the context

Risk Identification

Risk Analysis

Risk Evaluation

Risk Treatment

Co

mm

un

icati

on

an

d c

on

su

ltati

on

Mo

nit

ori

ng

an

d r

ev

iew

Risk Assessment

Risk Acceptance

No

No

Yes

Yes

RISK DECISION POINT 1

Assessment satisfactory

RISK DECISION POINT 2

Treatment satisfactory

ECIIA* / FERMA**

Three Lines of Defense Model

*European Confederation of Institutes of Internal Auditors

** Federation of European Risk Management Associations

1st LINE OF DEFENSE 2nd LINE OF DEFENSE 3rd LINE OF DEFENSE

Management

Controls

Internal

Control

Measures

Financial Control

Security

Risk Management

Quality

Inspection

Compliance

Internal

Audit

Executive Committee Audit Committee

Board of Directors

Shareholders

Our ERM System is being upgraded in order to align it with international standards:

48

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 (DJSI Europe).

Annexes


49

Repsol is the leading oil and gas company in 2012 for carbon management, according to the Climate

Disclosure Leadership Index (CDLI), comprising the top 50 international companies in communication

and transparency on climate change

Our Company has won recognition for its energy efficiency and carbon management three times in

the last six years.

Annexes


2009 2010 2011 2012 2013 2014

Maximum Energy sector

score 88 90 92 98 98 100

Minimum score for Energy

sector companies to be

eligible for the CDLI

79 88 90 95 97 98 *

Repsol’s score 75 88 89 98 98 96

Repsol´s evolution CPLI - A B A- B B

70

75

80

85

90

95

100

105

2009 2010 2011 2012 2013 2014

Maximum Energy sector score

Minimum score for Energysector companies to beeligible for the CDLI

Repsol’s score

(*) Since 2014 leaders are identified by geographical area and not globally as in previous years. According to 2014 score, Repsol is among the companies with the highest

score in transparency of the Energy sector.

©

THANK YOU

©

Repsol Contact details:

• Ms. Victoria Velasquez, Deputy Director Investor Relations- ESG.

[email protected]

+34 91 7534474

• Ms. Leticia Padura,Investor Relations Officer.

[email protected]

+34 91 7535988

mailto:[email protected]

mailto:[email protected]

REPSOL

Growing from our strengths in a sustainable way

Repsol S.A.EM Division of Economy, Finance and Development. 7/01/2015

presentacion esg 2014 - repsol · namibia, angola: offshore 2. main challenges in repsol ......

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