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1 * IFNOT:ARCHIVE_PAGE * * END:IF * No puedes leer este correctamente? Míralo en tu NAVEGADOR Dear * FNAME *, The upcoming newsletter contains a video in which I offer an overview of the results for the full year I also want to share with you the main details of the progress of Repsol s Strategic Plan. I encourage you to take a look at it. Enjoy our newsletter! abautistaf.ir@repsol.com Interview of the month Angel Bautista, Director of Investor Relations, offers an overview of the results for the full year Trending topic Progress of Repsol's Strategic Plan. Figures of the period Consult Repsol s fourth quarterly figures for 2015 file:///volumes/working/repsol_inversores/2016/03.newsletters/investors/02.febrero/index.html 1/10

2 FAQs The latest Frequently Asked Questions to our IR team On the road Consult our activities in March and April. Official Notice Repsol guarantees that the information contained in this section is exactly the same as the forwarded to the CNMV, CNV, SEC and OTCQX Press Releases Consult the latest news about the Company. Angel Bautista, Director of Investor Relations, offers an overview of the results for the full year Our net adjusted income stood at 1.8 Bn, 9% more than in This result is supported by a very strong downstream business. Isolating the effect of the acquisition of Talisman, Repsol was able, with a 50% lower Brent price, to reduce its net debt by 1 Bn which shows the resilience of the company to this low price scenario. We have adjusted our July dividend payment to 0.3 euro per share due to the weaker price enviroment and we will be dinamic regarding our file:///volumes/working/repsol_inversores/2016/03.newsletters/investors/02.febrero/index.html 2/10

3 dividends in the future. Progress of Repsol's Strategic Plan Last October Repsol released its Strategic Plan which is based on two main objectives: value shifting from growth to value delivery, to get the maximum profitability from each investment and resilience create value under any price scenario. These two objectives will be achieved through portfolio management and efficiency. All these measures will allow Repsol to reduce its breakeven to $/bbl and generate cash flow (10 B in the stress scenario and 20 B in the base case scenario)* during the five years of the plan to pay off debt and maintain its shareholder compensation policy. During these months Repsol has progressed better than expected in achieving its objectives: delivering its synergy & efficiency program and going forward with its selective divestment package. But crude and gas prices have been lower than expected. Considering the continued price weakness, Repsol has reviewed the projections of the base and stress cases, revisiting them under an even lower oil and gas price scenario. (Revised base case starts with 40 dollars in 2016 and ramps up to 85 dollars by Updated stress case goes down to 40 dollars in 2016 and 2017, and remains flat at 50 dollars for the remainder of the period). Repsol is adapting and adjusting quickly to this low price scenario, and has enacted additional measures to reinforce the achievement of its strategic objectives, which remains unchanged: Acceleration of the implementation and increase of synergiesfrom the integration of Talisman. Approximately 400 million dollars annually have been identified (compared to the 220 million dollars initially forecasted and 350 million dollarscommunicated in October) of which more than 50% havealready been implemented. This improvement comes mostly from the repurchassman bonds executed in December, which reduces ourannual interest payments by 65 million dollar's file:///volumes/working/repsol_inversores/2016/03.newsletters/investors/02.febrero/index.html 3/10

4 e are also capturing significant synergies in areas likepeople and Organization, IT, from the high grading of our exploration portfolio and in other areas like, for example, our corporate insurance program. Revisiting the efficiency program. Synergies and efficiency measures will reach approximately 1.1 billion euros in 2016,more than 50% of the objective of 2.1 billion euros outlined in the Strategic Plan for An additional reduction in total investments for 2016 to a totalof 3.9 billion euros. In 2017 the investment level is expected to keep at the same level as in Overall, Repsol is reducing its cumulative investment for 2016 and 2017 by around 1.8 billion euros, compared to the figure of its Strategic Plan. Most of the optimization in Capex comes from our Upstream, where we expect to invest around 3 billion Euros in 2016, excluding exploration G&G and G&A. The reduction arises from a combination of lower exploration,our efficiency program with its associated opex and capex optimization and deflation capture, as well as deferringnon critical investments in development and producing assetswhile keeping a production level at around 700 thousand boe<./p> Expansion and acceleration of the divestment of non strategic assets, always under the principle of protecting the value of each asset. As a result in 2016 Repsol is anticipating the delivery of its key strategic targets and materially reducing its break evens. Repsol expects to achieve, at 40 dollars Brent, cash neutrality in the next two years, after paying dividends and interests. This is unique in our sector, one of the lowest cash break even among our peers, and will allow the company to generate cash flow (10 B under the revised stress scenario) for debt and dividends. 1. Scenario used (stress): Brent $50/bbl, HH $3.5/Mbtu and Repsol refining margin indicator of $6.4/bbl, from 2016 to Base case scenario starting at Brent = $65/bbl and HH = $3.5/Mbtu in 2016, increasing to $75/bbl and $4.0/Mbtu in 2017, $85/bbl and $4.6/Mbtu in 2018, $90/bbl and $4.7/Mbtu in 2019 and $91.8/bbl and $4.8/Mbtu in 2020, with a constant refining margin of $6.4/bbl. Consult Repsol's fourth quarterly figures for 2015 file:///volumes/working/repsol_inversores/2016/03.newsletters/investors/02.febrero/index.html 4/10

5 The last Frequently Asked Questions to our IR team Debt Maturities and liquidity file:///volumes/working/repsol_inversores/2016/03.newsletters/investors/02.febrero/index.html 5/10

6 The gross debt maturities in the short term were 4.3 billion (including interests).the Group s liquidity at the end of the fourth quarter of 2015 stood above 9 billion (including undrawn credit lines: short term 678 million and long term 5,574 million).moreover, our liquidity covers our short term maturities by more than 2 times. Repsol has just announced that it will reduce capex for 2016 even further, from 4.9 Bn to 3.9 Bn. Where does this reduction come from? The CapEx for 2016 is reduced to 3.9 Bn. The split by business is as follows: 2.9 Bn in Upstream, 0.9 Bn in Downstream and 0.1 Bn in Corporate & Others. Most of the optimization in Capex comes from our Upstream, where we expect to invest around 2.9 billion in 2016 (excluding G&G and G&A). The reduction arises from a combination of lower exploration, our efficiency program, as well as deferring non critical investments in development and producing assets, while keeping a production level at around 700 thousand boe per day. Our exploration capex for 2016, (including a G&G and G&A of around file:///volumes/working/repsol_inversores/2016/03.newsletters/investors/02.febrero/index.html 6/10

7 US$300 million), falls to just around US$800 million versus our previous guidance of US$1 billion. The capex optimization will have no impact on our production profile, as we are benefiting from the end of the previous investment cycle from Repsol s legacy assets, as well as from a strong performance of legacy Talisman assets. What feedback can you give us from the meetings you have had with the rating agencies? We have recently met with the Credit Rating Agencies. We do it in a recurrent, fluent and transparent manner; as we did when we announced the acquisition of Talisman and with the presentation of our Strategic Plan The battery of measures presented recently should be enough to maintain the investment grade. We have a track record of delivery in front of the Credit Rating Agencies. During the last 4 months Repsol has been able to execute more than 3 Bn, either of divestment or CapEx reduction that are linked to M&A activity, compared with the 1 Bn agreed previously with the Credit Rating Agencies. Moreover, we have over delivered on the synergies committed to them and. Therefore, we feel confident that we will maintain our investment grade. In the light of the dividend cut announced today, can you clarify Repsol s dividend policy? Repsol has announced a dividend cut only for the interim dividend to be paid in July The gross dividend to be paid will be of 0.3 euro per share, maintaining the scrip option. That means that in 2016 we will pay 0.8 euro per share. The dividend policy of a company must be dynamic and in accordance with both the macro context and the results of that company. Repsol regards as a prudent measure to adapt July s dividend to the current circumstances. Repsol continues committed with providing an attractive shareholders remuneration. Consult our activities in March and April file:///volumes/working/repsol_inversores/2016/03.newsletters/investors/02.febrero/index.html 7/10

8 Having announced the FY 2015 results, the IR team will get on the road to continue with the communication to investors and markets in general. In March, the Head of IR will attend a meeting with investors at Banco Sabadell offices in Madrid. During April, the Senior Management and the head of IR will be attending The Bank of America Merrill Lynch Oil & Gas Investor Forum in London. Meanwhile other members of the team will also be marketing in Genève at the Iberian Conference organized by Mirabaud and AERI and in Madrid at Exane BNP Paribas Spain Investor Day. On April, 22nd, Management of different Swedish companies will visit Repsol Campus. The group will be headed by the Head of Sustainable Value Creation at First Swedish National Pension Fund. The purpose of their visit is to attend a presentation about Repsol best practices in Sustainability, that will be conducted by Company Management. Repsol guarantees that the information contained in this section is exactly the same as the forwarded to the CNMV, CNV, SEC and OTCQX. file:///volumes/working/repsol_inversores/2016/03.newsletters/investors/02.febrero/index.html 8/10

9 the CNMV, CNV, SEC and OTCQX. Webcast presentation of 4Q2015 and full year results. The Company announces the sale of its offshore wind power business in the United Kingdom to SDIC Power of China for 238 million euros. Press release on the results for the fourth quarter and full year Consult the latest news about the Company Repsol divests Eagle Ford stake and acquires Norwegian producing assets Repsol named Energy Company of the Year by Platts Repsol amortizes part of Talisman's debt and reduces its financing costs by 65 million dollars a year Repsol sells its piped gas business in Northern Spain and Extremadura for 136 million euros file:///volumes/working/repsol_inversores/2016/03.newsletters/investors/02.febrero/index.html 9/10

10 Repsol, S.A All rights reserved. Legal notice Código de comunicación: ms78lo90ms. file:///volumes/working/repsol_inversores/2016/03.newsletters/investors/02.febrero/index.html 10/10