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1
Overview
2010 Results
Strategy Achievements
Main Highlights
Outlook and Conclusions
Agenda
2
Overview
The EUR depreciated 5% against the USD
Overview
4
Exchange rate USD/EUR
2009
2010
1.1
1.2
1.3
1.4
1.5
us$/€
1 Q 2 Q 3 Q 4 Q
Average price of Repsol’s oil mix increased 26.7% and Brent 28.8%
Repsol’s oil mix vs. Brent
Repsol’s oil mixBrent
us$/bbl
30
40
50
60
70
80
90
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10
Overview
5
Average price of Repsol’s gas mix increased 17% and Henry Hub 10%
Repsol’s gas mix vs. Henry Hub
Repsol’s gas mix
us$/Mbtu
0
1
2
3
4
5
6
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10
Henry Hub
Overview
6
Overview
Repsol’s integrated margindoubles Sector averageSlight recovery in refining margins
Repsol’s Integrated R&M Margin vs. Sector
2.0
4.0
6.0
0.02010
us$/bbl
Repsol
Sector
7
Refining Margin Indicator
0,0
1,0
2,0
3,0
4,0
5,0
1Q 2Q 3Q 4Q
us$/bbl
2009
2010
0.0
1.0
2.0
3.0
4.0
5.0
Argentina: convergence between local and international prices
Prices at the pump
Gasoline
500
600
700
800
900
1,000
1Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10
us$/m3
2Q09
Diesel
Average exchange rate AR$/USD
2009
2.0
2.5
3.0
3.5
4.0
4.5
1Q 2Q 3Q 4Q
AR$/us$
2010
8
OverviewPrices in Argentina
2010 Results
2010 Results
Net Income was 4,693 MEUR
Net Income
+201%
Million €
1,000
2009 20100
2,000
3,000
4,000
5,000
1,559
4,693
Adjusted Net Income
+55%
Million €
500
2009 20100
1,000
1,500
2,000
2,500
1,524
2,360
10
2010 Results
Strong growth in all business units
Operating Income
+135%
3,244
7,621
Million €
2,000
2009 20100
4,000
6,000
8,000
Adjusted Operating Income
+67%
3,128
5,213
Million €
2.000
4.000
6.000
2009 20100
11
2010 Results
12
2009Million € 2010
Adjusted E&P 884 1,473Adjusted LNG 50 127
Adjusted YPF 789 1,625
Adjusted Corporate and others (354) (336)
Adjusted Operating Income 3,128 5,213Adjusted Financial expenses (468) (858)Adjusted Income before income tax and income of associates 2,660 4,355
Adjusted Income for the period 1,689 2,624Adjusted Minority interests (165) (264)
Adjusted Downstream 1,014 1,475
Adjusted GAS NATURAL FENOSA 745 849
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 4,6931,559
Upstream adjusted operating income increased 67%
884
1,473
606243
(137) (168)
45
Million €
0
500
1,000
1,500
2,000
2009 Price Volume Explorationcosts
Exchange rate
Depreciationand Others
2010
2010 ResultsUpstream Adjusted Operating Income
13
2010 ResultsDownstream Adjusted Operating Income
Downstream adjusted operating income increased 46%
1,014
39277
13134
(119) 1,47599
Million €
0
500
1,000
1,500
2,000
2009 RefiningActivity
Marketing Chemicals Exchange rate
Inventoryeffect
Others 2010
14
2010 ResultsYPF Adjusted Operating Income
YPF adjusted operating income increased 106%
789
762 40 58
1,625(353)(42)
394(23)
Exportsand products
linked to internationalprices
Million €
Increase in Domestic Market
prices
Sales andPurchasesvolumes
Costs Exchange rate
Others0
500
1,000
1,500
2,000
2,500
2009 Gas 2010
15
2010 ResultsGas Natural Fenosa Adjusted Operating Income
Gas Natural Fenosa adjusted operating income increased 14%
745849
Million €
0
200
400
600
800
2009 2010
+14%
16
2010 ResultsFinancial position
Net debt was reduced by more than 3.2 B€
Figures excluding Gas Natural FenosaNet Debt (excluding preferent shares) = Gross Debt – Financial investments – Cash and Cash equivalents
Million €
0
1,000
2,000
3,000
4,000
5,000
2009 2010
4,905
1,697
-65%
Net Debt
17
2010 ResultsDividends
Dividend increased 23.5%
(*) 2010 Total dividend. Includes the interim dividend announced in november and the amount to be confirmed by AGM.
1.051.00
0.720.60
0.85
0.50
1.05*€/ sh.
2008200720062005 20092004 2010
18
2010 ResultsStock Market View
Better performance than IBEX 35 and Peer group
Peer Group +11.5%
Ibex 35 -11%
19
Repsol +25%
100
110
120
130
90
80
70
%
April 14th 2011Jan 1st 2010 Jan 1st 2011
Strategy Achievements
• 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 AchievementsUpstream
• 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 AchievementsDownstream
Strategy Achievements
• Liquids prices moving towards import parity• Contention of oil decline• Oil RRR above 100% in 2010• Shale oil & gas
Capturing the hidden value of YPF
• Working on the objectives set in the 2010 – 2014 framework• Progress in enhancing financial structure
Creating a vertically integrated leader in gas and power
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, …
24Diversified and well-balanced portfolio
Main Highlights
Main HighlightsUpstream: Exploration
34 discoveries in 2008-2011 period
Renewing our acreage position30 new exploration blocks
348
362
+4%*Exploration Blocks
200
300
400
2009 2010(*) Net of acreage relinquishment
New contingent resources*
Total 06-10: 2 BBoe
(*) Contingent resources evaluated on August 2010, considering 40% dilution in Brazil assets. Brazil evaluated by independent consultant.
MBoe
2006 2007 2008 2009 20100
200
400
600
800
101
294362
599715
Venus–B1
Mercury 1
Sierra Leone
20082009
Operated by Repsol
2010
2011AlgeriaAZSE-2 (Reggane)
AL-2 (Berkine)KLS-1 (Reggane)OTLH-2 (Ahnet)TGFO-1 (Ahnet)
BoliviaHuacaya X1RGD 22
BrazilGuaráIguazúPiracucáPanoramixAbaré OesteVampiraPiracucá 2Creal B
Carioca NE
Cosecha Y Norte
ColombiaCosecha Z
Capachos Sur 1Calamaro 1
VenezuelaPerla 1(Cardón IV)Perla 2Perla 3
BuckskinUS GoM
MoroccoAnchois 1
SpainLubinaMontanazo
LibyaY1 (NC 186)
Barracuda (NC 202)A1 130/4 (NC 115)
PeruKinteroni(Bloque 57)
Kinteroni-2
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Main HighlightsUpstream: Brazil
Brazil: great value and growth generator
• Exploratory concession in 16 blocks: more than 9,600 km2 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
27
Main HighlightsUpstream: Peru
Peru: value all along the gas chain
• Exploratory concession in 8 blocks: more than 49,800 km2 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
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Venezuela: discovery of the biggest gas field in Latin-America
• Exploratory concession in 9 blocks: more than 4,550 km2 of total acreage• Total Production: 14 MBoe• Entry into production project Barua-Motatán. 40% Stake
Main HighlightsUpstream: Venezuela
29
• 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 for40 years
Carabobo Project
• 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
Cardón IV
Bolivia: gas supply to Argentina
• Exploratory concession in 29 blocks: more than 11,750 km2 of total acreage
• Total net production: 7.7 MBoe
Margarita-Huacaya:
• Operator 37.5% stake
• FID of Phase 1
• Production of 8.3 Mm3/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)
Main HighlightsUpstream: Bolivia
30
USA: being in the vanguard of technology
• Exploratory concession in 283 blocks in offshore areas: more than 6,300 km2 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 alreadystarted
• 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
Main HighlightsUpstream: USA
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Main HighlightsLNG: consolidation year
LNG: making the most of our investments
• 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
Peru LNG
• 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
Corea
• 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
Canaport
• Repsol supplied 8 cargoes during 2010
• Expect 10 during 2011
Argentina
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Main HighlightsDownstream
33
Downstream: solid cash generation from premier integrated position in the European downstream
• New coker unit (2 Mtpa). Conversion improvement (FCC eq.) of 32% to 63%
• On stream: 4Q 2011
Petronor: investment 850 M €
• Capacity increase of 100 kbpd to 220 kppd
• New hydrocracker (2.5 Mtpa) and new coker (3 Mtpa). Conversion improvement (FCC eq.) to 76% from 0%.
• On stream: 4Q 2011
Cartagena: investment 3,250 M €
+16%
Distillation capacity
20122010
(kbpd)
776
896
Middle distillates production
2010 2012
(2010 basis) +25%
100
125
Conversion
20122010
(Equivalent FCC %) +47%
43
63
Main HighlightsDownstream: New Energies
New, profitable, sustainable in time and less carbon intensive, energetic solutions34
• Adquisition of a 20% stake in AlgaEnergy• Setting-up Kuosol to develop a pioneer
project to obtain bioenergy and biodiesel from jatropha
Bioenergy
• 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
• Adquisition of a 47% stake in Orisol• Association with EVE to build and to operate
the vehicles recharging network
Renewable generation and mobility• CO2 capture and storage• Energy efficiency: short-term tool for
controlling emissions
CO2 management and energy efficiency
Kboed
2006 2007 2008 2009 2010200
250
300
Main HighlightsYPF: Moving Forward
Improve the recovery factor in existing fieldsas efficiently as possible to increase production 35
Oil
Crude Oil production stabilisation and RRR > 100%
Production and Reserves Replacement Ratio
25%
52%
76% 69%
100%
RF: 20.2%
RF: 35.7% average at the world’s main basins
24,340
Million boe
0
5,000
10,000
15,000
20,000
25,000
Original oil in place Agregate Output
4,909
Non-conventional Resources open a new growth wave
• 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
Tight gas
• 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
Shale gas & oil
Main HighlightsYPF: moving forward
36
Repsol is considered one of the world’s best companies in sustainability andenvironment
•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)
Main HighlightsEnvironmental Sustainability
37
Repsol is one of the best companies in contribution to the development of peoplewith disabilities and their inclusion into the workforce
• Repsol receives the Discapnet award from the Once Foundation for their commitment to disabledpeople
• Repsol wins “Best Private Company” Award for its development and recruiting policies for peoplewith 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
Main HighlightsDiversity and People Inclusion
38
Outlook and Conclusions
65% 94% 131% 110%
1067 1060 1099
333 333 344 3-4% CAGR
362 599 715(*) +275 Mboe per year
Outlook and ConclusionsOur Roadmap
40
(*) Considering 40% dilution in Brazil assetsAll production data refers to plateau production
FID pending (2011)Production:
8 Mm3/d in 2014
FID (2010)Production:250 kboed
Carioca, Abaré, Abaré west and Iguazú in BM-S-9 Albacora Leste pre-saltPanoramix: New discovery in BMS-48
Repsol Brasil Capital Increase
Sale of 4.2% stake toinstitutional investors
Kinteroni (Peru)
FID (2010)Incremental Production:11 Mm3/d
FID: 2009Production:40 kboed
FID pending (2012) Production:400 kboed
FID Pending (2011)Production:25 kboed
Margarita / Huacaya (Bolivia) Guará (Brazil) Piracucá (Brazil)
Shenzi(USA GoM)
FID: 2006 Production:121 kboed
Canaport
Start up:3Q 2009
Capacidad: 10 Bcma
Peru LNG
Start up: 2Q 2010 Capacity: 6 Bcma
FID (2009)Production:5,6 kboed
Lubina-Montanazo
(Spain)
GoM USA
Cardon IV(Venezuela)
Carabobo(Venezuela)
Reggane(Algeria)FID: 2009
Production: 8 Mm3/dStart up: 4Q11
Refineres Bilbao / Cartagena
(Spain)
Another year of value creation
Start up of key Downstream
projects
Next wave of profitable growth
FID: 2007 Production:75 kboed
I/R (Libia)
BuckskinShenzi G-104 and Shenzi-8: increase the potentialof the current fields and the North Flank
Tangier-Larache, first discovery success in Moroccan offshore
Brazil
Morocco
Sierra Leona y África Occidental
Biofuels, alternative energies, bioenergyNew Energies
Liquids Gas LNG
2012 2013 2014 2015 beyond 2008Start up 2009 2010 2011
RRR
Sale of 15% staketo Petersen Group
Portfolio: Divestment
Operations: Improvement of recovery factor and development of unconventional resources
Venus B-1, first offshore discovery in an unexplred area
Crude RRR 72% 70% 100%
Reserves (Mboe)
Production (kboed)
Add. Resources (Mboe/year)
Cash generated will allow us to fund investments,increase dividends and improve the leverage ratio
Outlook and ConclusionsConclusions
• 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
41
Positioned for growth
Portfolio optimization
Sound financial position
42
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
AGM 2011 Resolution Proposals
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.
Disclaimer
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