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Agenda Overview 2010 Results Strategy Achievements Main Highlights Outlook and Conclusions 2
Overview
Overview us$/ Exchange rate USD/EUR 1.5 1.4 1.3 2009 2010 1.2 1.1 1 Q 2 Q 3 Q 4 Q The EUR depreciated 5% against the USD 4
Overview Repsol s oil mix vs. Brent us$/bbl 90 80 70 Brent Repsol s oil mix 60 50 40 30 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Average price of Repsol s oil mix increased 26.7% and Brent 28.8% 5
Overview Repsol s gas mix vs. Henry Hub us$/mbtu 6 5 4 3 2 Henry Hub Repsol s gas mix 1 0 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Average price of Repsol s gas mix increased 17% and Henry Hub 10% 6
Overview Refining Margin Indicator Repsol s Integrated R&M Margin vs. Sector us$/bbl 5.0 5,0 us$/bbl 6.0 4.0 4,0 3.0 3,0 2010 4.0 Repsol 2.0 2,0 1.0 1,0 0.0 0,0 1Q 2Q 3Q 4Q 2009 2.0 0.0 2010 Sector Slight recovery in refining margins Repsol s integrated margin doubles Sector average 7
Overview Prices in Argentina Prices at the pump Average exchange rate AR$/USD us$/m 3 AR$/us$ 1,000 900 800 Gasoline Diesel 4.5 4.0 3.5 2010 2009 700 3.0 600 2.5 500 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 2.0 1Q 2Q 3Q 4Q Argentina: convergence between local and international prices 8
2010 Results
2010 Results Net Income Adjusted Net Income Million Million 5,000 4,000 3,000 +201% 4,693 2,500 2,000 1,500 +55% 2,360 2,000 1,000 1,524 1,000 0 1,559 2009 2010 500 0 2009 2010 Net Income was 4,693 MEUR 10
2010 Results Operating Income Adjusted Operating Income Million Million 8,000 6,000 +135% 7,621 6.000 4.000 +67% 5,213 4,000 2,000 3,244 2.000 3,128 0 2009 2010 0 2009 2010 Strong growth in all business units 11
2010 Results Million 2009 2010 Adjusted E&P 884 1,473 Adjusted LNG 50 127 Adjusted Downstream 1,014 1,475 Adjusted YPF 789 1,625 Adjusted GAS NATURAL FENOSA 745 849 Adjusted Corporate and others (354) (336) Adjusted Operating Income 3,128 5,213 Adjusted Financial expenses (468) (858) Adjusted Income before income tax and income of associates 2,660 4,355 Adjusted Income for the period 1,689 2,624 Adjusted Minority interests (165) (264) Adjusted Income attributable to equity holders of the parent 1,524 2,360 Non recurrent Income after taxes 35 2,333 Income attributable to equity holders of the parent 1,559 4,693 12
2010 Results Upstream Adjusted Operating Income Million 2,000 1,500 1,000 606 243 (137) 45 (168) 1,473 500 884 0 2009 Price Volume Exploration costs Exchange rate Depreciation and Others 2010 Upstream adjusted operating income increased 67% 13
2010 Results Downstream Adjusted Operating Income Million 2,000 1,500 1,000 99 39 277 34 131 (119) 1,475 500 1,014 0 2009 Refining Activity Marketing Chemicals Exchange rate Inventory effect Others 2010 Downstream adjusted operating income increased 46% 14
2010 Results YPF Adjusted Operating Income Million 2,500 2,000 1,500 1,000 394 762 (42) (23) 40 (353) 58 1,625 500 789 0 Exports 2009 Increase in Sales and Gas Costs Exchange Others 2010 Domestic Market and products Purchases linked to international rate prices volumes prices YPF adjusted operating income increased 106% 15
2010 Results Gas Natural Fenosa Adjusted Operating Income Million 800 +14% 600 400 745 849 200 0 2009 2010 Gas Natural Fenosa adjusted operating income increased 14% 16
2010 Results Financial position Net Debt Million 5,000 4,000 3,000 4,905-65% 2,000 1,000 0 1,697 2009 2010 Figures excluding Gas Natural Fenosa Net Debt (excluding preferent shares) = Gross Debt Financial investments Cash and Cash equivalents Net debt was reduced by more than 3.2 B 17
2010 Results Dividends / sh. 0.50 0.60 0.72 1.00 1.05 0.85 1.05* 2004 2005 2006 2007 2008 2009 2010 (*) 2010 Total dividend. Includes the interim dividend announced in november and the amount to be confirmed by AGM. Dividend increased 23.5% 18
2010 Results Stock Market View % 130 120 110 Repsol +25% Peer Group +11.5% 100 90 Ibex 35-11% 80 70 Jan 1st 2010 Jan 1st 2011 April 14th 2011 Better performance than IBEX 35 and Peer group 19
Strategy Achievements
Strategy Achievements Upstream Organic production grew 3% in 2010 Increase in Reserve Replacement Ratio. In 2010 was 131% Investments in 2010: 1,126 MEUR Annual Investment Average 2010-2014: 1,800 MEUR 25-30 exploratory wells per year in 2010-2014 period Transformation of the Upstream business 21
Strategy Achievements Downstream Two large projects to be on stream in 2011 71% of total investment budget already spent Creation of a new area to develop biofuels and alternative energies Best-in-class Assets in Downstream 22
Strategy Achievements Capturing the hidden value of YPF Liquids prices moving towards import parity Contention of oil decline Oil RRR above 100% in 2010 Shale oil & gas Creating a vertically integrated leader in gas and power Working on the objectives set in the 2010 2014 framework Progress in enhancing financial structure 23
Strategy Achievements Repsol-Sinopec: alliance in Brazil to create one of Latin-America s largest private energy groups, valued at 17.8 BUSD. Repsol will retain 60% of the company. Divestments in YPF: progress in the strategy to rebalance the asset portfolio Sale of more than 10% to institutional investors and funds in last months Launch of a Public Offering up to 7.7% Other divestments in 2010: Refap, CLH, Diversified and well-balanced portfolio 24
Main Highlights
Main Highlights Upstream: Exploration Renewing our acreage position 30 new exploration blocks Venezuela Perla 1 (Cardón IV) Perla 2 Perla 3 Colombia Cosecha Z Cosecha Y Norte Capachos Sur 1 Calamaro 1 Peru Kinteroni (Bloque 57) Kinteroni-2 Bolivia Huacaya X1 RGD 22 US GoM Buckskin Brazil Guará Iguazú Piracucá Panoramix Abaré Oeste Vampira Piracucá 2 Creal B Carioca NE Spain Lubina Montanazo Morocco Anchois 1 Libya Y1 (NC 186) Barracuda (NC 202) A1 130/4 (NC 115) Algeria AZSE-2 (Reggane) AL-2 (Berkine) KLS-1 (Reggane) OTLH-2 (Ahnet) TGFO-1 (Ahnet) Sierra Leone Venus B1 Mercury 1 2008 2009 2010 2011 Operated by Repsol 34 discoveries in 2008-2011 period MBoe Exploration Blocks 800 600 400 200 0 400 300 348 +4%* 362 200 2009 2010 (*) Net of acreage relinquishment New contingent resources * 101 Total 06-10: 2 BBoe 294 362 599 715 2006 2007 2008 2009 2010 (*) Contingent resources evaluated on August 2010, considering 40% dilution in Brazil assets. Brazil evaluated by independent consultant. 26
Main Highlights Upstream: Brazil Exploratory concession in 16 blocks: more than 9,600 km 2 of total acreage 6 exploratory tests in 2010 and 3 drills at early 2011 Guara North confirmed the great potential of the area. Production will start in 2013 Appraisal well drilled successfully in Carioca Albacora Leste increases significantly the potential of surplus reserves New discovery in Piracucá. Production will start in 2015 Brazil: great value and growth generator 27
Main Highlights Upstream: Peru Exploratory concession in 8 blocks: more than 49,800 km 2 of total acreage Net production of 7 MBoe New exploratory concessions in Faja Plegada Subandina Start of development stage in the Southern part of Kinteroni (Block 57). First gas on stream in 2012 Start of natural gas supply from blocks 56 and 88 to the Peru LNG liquefaction plant Peru: value all along the gas chain 28
Main Highlights Upstream: Venezuela Exploratory concession in 9 blocks: more than 4,550 km 2 of total acreage Total Production: 14 MBoe Entry into production project Barua-Motatán. 40% Stake Carabobo Project 11% Stake One of the areas in the world with more undeveloped reserves Heavy oil reserves for Spanish refining system Expected to reach a maximum production of 400.000 bbl/d for 40 years Cardón IV Perla is the biggest field in Latin-America A great potential of resources confirmed after drilling tests at Perla 2 and Perla 3 (2010) and Perla 4 (2011) First gas production on stream in 2014 Venezuela: discovery of the biggest gas field in Latin-America 29
Main Highlights Upstream: Bolivia Exploratory concession in 29 blocks: more than 11,750 km 2 of total acreage Total net production: 7.7 MBoe Margarita-Huacaya: Operator 37.5% stake FID of Phase 1 Production of 8.3 Mm 3 /d in 2012 (Phase I) To be the main supplier of bolivian gas to Argentina Expected to boost seven times the actual gas processing capacity at the end of 2013 (Phase I+ Phase II) Bolivia: gas supply to Argentina 30
Main Highlights Upstream: USA Exploratory concession in 283 blocks in offshore areas: more than 6,300 km 2 of total acreage Net production of 11 MBoe (Shenzi field) Shenzi s investment plan to maintain production plateau between 100,000 and 120,000 boed. Drilling activities already started In 2011, test drilling will be resumed in Buckskin Consolidation of activity in Alaska: entry in exploration blocks with 70% stake in North Slope near big production fields. Previous stake in offshore blocks in Beauford Sea and Chukchi Sea New blocks offshore in Gulf of Mexico and onshore in Louisiana USA: being in the vanguard of technology 31
Main Highlights LNG: consolidation year Peru LNG Start in June 2010 Capacity 4.4 MTon/year Biggest investment in Peru s history: 3,800 MUSD Exclusive commercialization of the entire production Competitive access to Eastern Pacific Coast Argentina Repsol supplied 8 cargoes during 2010 Expect 10 during 2011 Canaport Construction work on the third storage tank was completed in May In 2010, the terminal received 25 cargoes Plant regasification volumes peaked at 0.8 TBtu/d Supply agreement with Qatargas Corea Supply agreement with Kogas. Shipment of 1.9 bcm of gas equivalent to Korea from the Peru LNG terminal First LNG contract in the Far East LNG: making the most of our investments 32
Main Highlights Downstream Cartagena: investment 3,250 M Distillation capacity Middle distillates production Conversion Capacity increase of 100 kbpd to 220 kppd (kbpd) +16% (2010 basis) +25% (Equivalent FCC %) +47% New hydrocracker (2.5 Mtpa) and new coker (3 Mtpa). Conversion improvement (FCC eq.) to 76% from 0%. 776 896 100 125 43 63 On stream: 4Q 2011 Petronor: investment 850 M 2010 2012 2010 2012 2010 2012 New coker unit (2 Mtpa). Conversion improvement (FCC eq.) of 32% to 63% On stream: 4Q 2011 Downstream: solid cash generation from premier integrated position in the European downstream 33
Main Highlights Downstream: New Energies Strengthen Repsol s commitment to developing sustainable energy solutions Identify opportunities, promote projects and develop initiatives which can provide synergies with Repsol s ongoing business Bioenergy Adquisition of a 20% stake in AlgaEnergy Setting-up Kuosol to develop a pioneer project to obtain bioenergy and biodiesel from jatropha Renewable generation and mobility Adquisition of a 47% stake in Orisol Association with EVE to build and to operate the vehicles recharging network CO 2 management and energy efficiency CO 2 capture and storage Energy efficiency: short-term tool for controlling emissions New, profitable, sustainable in time and less carbon intensive, energetic solutions 34
Main Highlights YPF: Moving Forward Million boe 25,000 Oil Kboed 300 Production and Reserves Replacement Ratio 100% 20,000 15,000 10,000 24,340 RF: 35.7% average at the world s main basins 250 52% 76% 69% RF: 20.2% 5,000 0 4,909 200 Original oil in place Agregate Output 2006 2007 2008 2009 2010 Improve the recovery factor in existing fields Crude Oil production stabilisation and RRR > 100% as efficiently as possible to increase production 35 25%
Main Highlights YPF: moving forward Tight gas 4 wells were drilled with initial production of 100,000 m3/day of gas per well Estimated resource base of 4.5 TCF in the Southern part of Loma La Lata Shale gas & oil Several vertical wells drilled in Vaca Muerta formation have confirmed oil and gas resources. Oil production level 200-400 bbl/d Backen and Eagle Ford basins in the US would be good analogous to some of our findings Non-conventional Resources open a new growth wave 36
Main Highlights Environmental Sustainability Gold Class Company in the SAM Sustainability Yearbook For a fith consecutive year, Repsol amongst the best companies in the Dow Jones Indexes Repsol s climate change strategy is considered one of world s best, according to the Climate Disclosure Leadership (CDLI) and Climate Performance Leadership (CPLI) indexes Repsol wins Emissions Reporting Transparency Award (Environmental Investment Organization) Repsol is considered one of the world s best companies in sustainability and environment 37
Main Highlights Diversity and People Inclusion Repsol receives the Discapnet award from the Once Foundation for their commitment to disabled people Repsol wins Best Private Company Award for its development and recruiting policies for people with disabilities A role model among Spanish companies having more than 2% of its employees with disabilities in its workforce It is Spain s largest accessible service station network and one of the biggest in Europe Repsol is one of the best companies in contribution to the development of people with disabilities and their inclusion into the workforce 38
Outlook and Conclusions
Outlook and Conclusions Our Roadmap I/R (Libia) FID: 2007 Production: 75 kboed Sale of 15% stake to Petersen Group Shenzi (USA GoM) FID: 2006 Production: 121 kboed Canaport Start up: 3Q 2009 Capacidad: 10 Bcma Another year of value creation Repsol Brasil Capital Increase Peru LNG Start up: 2Q 2010 Capacity: 6 Bcma Sale of 4.2% stake to institutional investors Crude RRR 72% 70% 100% Start up of key Downstream projects Refineres Bilbao / Cartagena (Spain) Start up: 4Q11 Lubina- Montanazo (Spain) FID (2009) Production: 5,6 kboed Kinteroni (Peru) FID: 2009 Production: 40 kboed FID (2010) Incremental Production: 11 Mm 3 /d FID (2010) Production: 250 kboed Next wave of profitable growth Carabobo (Venezuela) FID pending (2012) Production: 400 kboed Margarita / Cardon IV Huacaya (Bolivia) Guará (Brazil) Piracucá (Brazil) (Venezuela) Portfolio: Divestment FID pending (2011) Production: 8 Mm 3 /d in 2014 Operations: Improvement of recovery factor and development of unconventional resources Reggane (Algeria) FID: 2009 Production: 8 Mm 3 /d FID Pending (2011) Production: 25 kboed GoM USA Buckskin Shenzi G-104 and Shenzi-8: increase the potential of the current fields and the North Flank Brazil Carioca, Abaré, Abaré west and Iguazú in BM-S- 9 Albacora Leste pre-salt Panoramix: New discovery in BMS-48 Morocco Tangier-Larache, first discovery success in Moroccan offshore Sierra Leona y África Occidental Venus B-1, first offshore discovery in an unexplred area New Energies Biofuels, alternative energies, bioenergy Start up 2008 2009 2010 2011 2012 2013 2014 2015 beyond RRR Reserves (Mboe) 65% 94% 131% 110% 1067 1060 1099 All production data refers to plateau production (*) Considering 40% dilution in Brazil assets Production (kboed) Add. Resources (Mboe/year) 333 333 344 3-4% CAGR 362 599 715(*) +275 Mboe per year Liquids Gas LNG 40
Outlook and Conclusions Conclusions Positioned for growth Portfolio optimization Sound financial position Accomplishing the transformation of Repsol Upstream into the Group s growth engine through key attractive current projects Leverage on strong recent exploration track record to create value from current exploration pipeline Benefit from enhanced best-in-class Downstream assets to capitalize market recovery Geographical Balance Core Assets consolidation Strong balance sheet to fund future growth Large and stable dividend from YPF and Gas Natural Cash generated will allow us to fund investments, increase dividends and improve the leverage ratio 41
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AGM 2011 Resolution Proposals POINTS REGARDING THE ANNUAL ACCOUNTS, THE MANAGEMENT BY THE BOARD AND THE REELECTION OF THE ACCOUNTS AUDITOR First. Review and approval, if appropriate, of the Annual Financial Statements and the Management Report of Repsol YPF, S.A., of the Consolidated Annual Financial Statements and the Consolidated Management Report, for the fiscal year ended 31st December 2010, of the proposal of application of its earnings. Second. Revision and approval, if appropriate, of the management of the Board of Directors of Repsol YPF, S.A. corresponding to the fiscal year 2010. Third. Appointment of the Accounts Auditor of Repsol YPF, S.A. and of its Consolidated Group for the fiscal year 2011. POINTS REGARDING THE AMENDMENTS OF THE ARTICLES OF ASSOCIATION AND OF THE REGULATIONS OF THE GENERAL SHAREHOLDERS MEETING Forth. Modification of articles 9, 11, 19, 24, 27, 29, 44, 50 and 56 of the Bylaws; and of the articles 3, 5, 8, 13, 14 and 15 of the Regulations of the General Shareholders' Meeting. Fifth. Modification of article 52 of the Bylaws, regarding the application of profit/loss of the fiscal year. Sixth. Modification of articles 40 and 35 of the Bylaws, regarding the internal positions and meetings of the Board of Directors. 43
AGM 2011 Resolution Proposals POINTS REGARDING THE COMPOSITION OF THE BOARD OF DIRECTORS Seventh. Re-election of Mr. Antonio Brufau Niubo as Director. Eighth. Re-election of Mr. Luis Fernando del Rivero Asensio as Director. Ninth. Re-election of Mr. Juan Abelló Gallo as Director. Tenth. Re-election of Mr. Luis Carlos Croissier Batista as Director. Eleventh. Re-election of Mr. Ángel Durández Adeva as Director. Twelfth. Re-election of Mr. José Manuel Loureda Mantiñan as Director. Thirteenth. Appointment of Mr. Mario Fernández Pelaz as Director. POINTS REGARDING THE PROGRAMS OF PARTICIPATION IN THE SHARE CAPITAL OF THE COMPANY Fourteenth. Delivery Plan Shares to the Beneficiaries of Multi-Annual Programs. Fifthteenth. Stock Acquisition Plan 2011-2012. 44
AGM 2011 Resolution Proposals POINT REGARDING THE AUTHORISATION AND EXPRESS DELEGATION REQUIRED FOR THE BOARD OF DIRECTORS Sixthteenth. Delegation to the Board of Directors of the power to issue fixed rate, convertible and/or exchangeable securities for company shares or exchangeable for shares in other companies, as well as warrants (options to subscribe new shares or to acquire shares in circulation of the company or other companies). Fixing the criteria to determine the bases and modes of conversion and/or exchange and attribution to the Board of Directors of the powers to increase capital by the amount necessary, as well as to totally or partially exclude the pre-emptive subscription rights of the shareholders of said issues. Authorisation for the company to guarantee securities issued by its subsidiaries. To leave without effect, in the portion not used, the seventh resolution of the General Shareholders' Meeting held on 16 June 2006. POINT REGARDING GENERAL MATTERS Seventeenth. Delegation of powers to supplement, develop, execute, rectify and formalize the resolutions adopted by the General Shareholders' Meeting. 45
Disclaimer This document contains statements that Repsol YPF believes constitute forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements may include statements regarding the intent, belief, or current expectations of Repsol YPF and its management, including statements with respect to trends affecting Repsol YPF s financial condition, financial ratios, results of operations, business, strategy, geographic concentration, production volume and reserves, as well as Repsol YPF s plans, expectations or objectives with respect to capital expenditures, business, strategy, geographic concentration, 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. 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 YPF s control or may be difficult to predict. Repsol YPF s future financial condition, financial ratios, results of operations, business, strategy, geographic concentration, production volumes, reserves, capital expenditures, costs savings, investments and dividend payout policies, as well as future economic and other conditions, such as future crude oil and other prices, refining margins and exchange rates, could differ materially from those expressed or implied in any such forward-looking statements. Important factors that could cause such differences include, but are not limited to, oil, gas and other price fluctuations, supply and demand levels, currency fluctuations, exploration, drilling and production results, changes in reserves estimates, success in partnering with third parties, loss of market share, industry competition, environmental risks, physical risks, the risks of doing business in developing countries, legislative, tax, legal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, wars and acts of terrorism, natural disasters, project delays or advancements and lack of approvals, as well as those factors described in the filings made by Repsol YPF and its affiliates with the Comisión Nacional del Mercado de Valores in Spain, the Comisión Nacional de Valores in Argentina, and the Securities and Exchange Commission in the United States. These documents are available on Repsol YPF s website (www.repsol.com). In light of the foregoing, the forward-looking statements included in this document may not occur. Repsol YPF 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. This document does not constitute an offer to purchase, subscribe, sale or exchange of Repsol YPF s or YPF Sociedad Anonima s respective ordinary shares or ADSs in the United States or otherwise. Repsol YPF s and YPF Sociedad Anonima s respective ordinary shares and ADSs may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended. 46
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