Agenda 01 02 03 Unlocking Upstream Downstream the value of YPF Miguel Gutierrez Pablo Bizzotto Santiago Martnez Tanoira Chairman EVP Upstream EVP Downstream 04 05 06 Gas & Power Finance Q&A Marcos Browne Daniel Gonzlez EVP Gas &…
UNLOCKING THE VALUE OF YPF 4
YPF Stock performance since June 2012 (1) 350% 300% 250% 200% 150% 100% 50% 0% (1) Total investment return, includes gross dividends Majors: Chevron, Exxon, BP, Shell, ENI, Total YPF S.A. Brent Majors Europeans…
YPF today YPF value moving forward 6
About YPF A 95-year-old Publicly The largest World The leading downstream Fifth-largest company, traded O&G class shale player in Argentina power the largest corporation producer producer generator 3 refineries: 50% of Argentinas in…
Leading Argentine O&G company Upstream Market share breakdown (%) Downstream Market share breakdown (%) Oil Others Crude Processing 2 No. of Gas Stations 2 Production 1 18% Others: 3% 1% Others 46% 4% 5%4% 27% 4% 58% 36% 5%…
Safety is one of our core values, Safety is and our number one priority paramount Our six golden rules guide our workers and keep them safe Injury Frequency Index 0.59 9
Generating energy for our clients Our Vision Unlock the full value of YPF Energy that is both affordable Unlock the potential and value across all energy and profitable paradigms to better serve our clients in a sustainable way 10
Unlocking value Extract Develop Partner Expand Asset maximum and expand with leading our power portfolio value from our sophisticated O&G players generation management mature and cost worldwide capabilities to conventional efficient…
The YPF has opportunity The geology The best partners The corporate governance The talent The political and economic environment The market 12
Geology and partners YPF participates in 50% of the Vaca Muerta area (34% Net) 13
Corporate governance Professional Management that is independent from the Government The majority shareholder is not involved in YPF operations and decisions An active, independent Board, made up mostly of renowned energy experts and…
Talent Alignment New top management team: of the best 3 new VPs hired from the market talent 2 new VPs internally promoted Creation of CMO and CTO positions Board and Creation of Cultural and management an Executive Operational role…
The government of Argentina is proactively seeking market normalization Political Specifically in the energy sector, the government is and economic Focusing on this area as main driver of growth framework and a competitive economy…
Market Strong economy, strong demand for YPF products Continued reduction of country risk will boost investment As the Argentine economy mobilizes, so will YPF growth opportunities: YPF is a key player in the governments ambitious…
Profitable O&G production Growth Power generation Petrochemical business Renewables The Focus on Energy efficiency future: Operational Excellence and Reliable and efficient operations Sustainability YPF plan Cost reduction and…
Our targets Annual Reserve Leverage to Annual CAPEX +10% Annual production Replacement 1.5x EBITDA of 4 - 4.5 EBITDA Increase Ratio 1 Billion Increase of 5% 19
We energize and create value our clients lives for our investors 20
CONTENT 01 Unlocking the value of YPF 04 Gas & Power 02 Upstream 05 Finance 03 Downstream 06 Q&A 21
Upstream at a glance The largest shale operator outside North America with a daily production exceeding 67.4 KBOE Largest O&G producer 1.1 Bn BOE in proven Net acreage of 1.8 MM acres in Argentina reserves in the most prospective…
Profitable growth Operational Development excellence and operating costs and sustainability reduction UPSTREAM Active Resource base and portfolio Proven reserves management increase 23
We expect to increase production 25% while reducing annual CAPEX by 13% PRODUCTION CAPEX kBOE/DAY, USD MM/YEAR, 2012-2022 2013-2022 Conventional Unconventional +25% 3.9 -13% 56% 3.4 28% 100% 72% 44% 2012 2017E 2022E…
Unconventionals: we plan to increase production through strategic partnerships and expect to reduce development cost DEVELOPMENT COST(1) UNCONVENTIONAL LOMA CAMPANA, PRODUCTION USD/BOE, 2015-2022 KBOE, 2017-2022 25.3 -47% +150%…
Conventionals: we plan to partially offset natural decline with increased recovery and natural gas improvement initiatives CONVENTIONAL PRODUCTION KBOE/DAY, 2017-2022 We expect to increase the recovery factor from 20% to 23%…
We aim to increase production while reducing operating costs by 20% OPERATING 100 COSTS %, 2017-2022 -20% 80 2017E O&M Other Opex Fuels 2022E & Energy 27
As a result, we expect YPF to grow P1 reserves by 50% Increase in P1 reserves P1 RESERVES 2007-2022 +50% More projects The strategic plan takes into account only 3.5% of the current resources 2007 2012 2016 2022E 28
CONTENT 01 Unlocking the value of YPF 04 Gas & Power 02 Upstream 05 Finance 03 Downstream 06 Q&A 29
Downstream at a glance REFINING & LOGISTICS MARKETING PETROCHEMICAL +320 KBBL/day, over 50% 1 brand recognition in fuels +2.2 mm tons/year, of Argentinas total capacity and lubricants in Argentina 1 petrochemical producer in…
Reliable and efficient execution Digital Petrochemical innovation business development DOWSTREAM Customer Geographic footprint experience leverage improvement 31
Argentina is a net importer of fuels with an increasing demand, and YPF presents strong economics to sustain its leadership position ARGENTINA IS A NET FUEL IMPORTER, AND DEMAND ...YPF CAN TAKE ADVANTAGE OF ITS HAS BEEN GROWING…
In petrochemicals, we have identified opportunities to take advantage of the regional market imbalance together with shale gas growth IDENTIFIED OPPORTUNITIES THE REGION IS A NET SHALE GAS GROWTH WILL PETROCHEMICAL IMPORTER, INCREASE…
YPF has specific initiatives to improve efficiency and reliability OPEX OPTIMIZATION EXCEEDS THE INCREASE IN THE COST OF ENERGY USD/BBL, 2017-2022 CAPEX EFFICIENCY INCLUDES Energy efficiency SPECIFIC INITIATIVES Logistics savings…
We will build on our strong brand to upgrade our value proposition COMPREHENSIVE RANGE OF PRODUCTS AND SERVICES BTC INFINIA ELAION BOXES CONVENIENCE STORE A COMPLETE PRODUCT OFFERING FOR KEY INDUSTRIES STRONG BRAND 1 IN…
YPF is already working on new technologies to be prepared for the future MOBILITY ANALYTICS DIGITAL OPERATIONAL CUSTOMER TECHNOLOGY INNOVATION TECHNOLOGY 36
CONTENT 01 Unlocking the value of YPF 04 Gas & Power 02 Upstream 05 Finance 03 Downstream 06 Q&A 37
Gas and Power at a glance NATURAL GAS MEGA POWER GENERATION Supplies over 32% of the Largest liquids separation and 1.9 GW of power countrys demand fractionation plant in Argentina generation capacity METROGAS Total annual capacity…
Mid and long - term contracts secured Energy Midstream capacity efficiency increase to support increase NG growth GAS & POWER Share of renewable Power generation energy increase business growth 39
Argentinas Natural Gas market is highly developed HIGH PENETRATION IN THE TRANSPORT AND GATHERING WHILE DISTRIBUTION NATIONAL ENERGY GRID (1) ARE HIGHLY CONCENTRATED HAS HIGH CAPILLARITY %, 2017 2017 52% 50% GAS 9 MM CLIENTS (2)…
NG prices have been increasing steadily and are expected to converge to market prices WELLHEAD GAS PRICES IN ARGENTINA Market prices will be defined by: USD/MMBTU, 2012-2022 Supply demand imbalance Seasonality Subsidies Import parity…
We are developing opportunities to stimulate demand for Natural Gas DEMAND IN ARGENTINA IS HIGHLY SEASONAL(1) WE ARE DEVELOPING MMm3/d OPPORTUNITIES TO GENERATE INCREMENTAL DEMAND Jan 15 Jul15 Jan 16 Jul16 Jan 17 Jul17 INDUSTRY…
YPF plans to lead the development of an efficient midstream network to make unconventional Natural Gas growth feasible DEVELOPED A PLAN TO GROW MIDSTREAM CAPACITY GROWING NATURAL GAS PRODUCTION MMm3/d, 2017-2022 +25% 11 projects…
YPF EE plans to continue increasing its power-generation capacity THE ELECTRICITY MARKET YPF POWER GENERATION RATIONALE FOR IN ARGENTINA GW, 2017-2022 INVESTMENT DEMAND IS EBITDA growth PROJECTED TO GROW Leverage expertise 3.5% A YEAR…
CONTENT 01 Unlocking the value of YPF 04 Gas & Power 02 Upstream 05 Finance 03 Downstream 06 Q&A 45
Financial discipline Dividend Strict capital growth allocation FINANCE Active portfolio Positive free management Cash flow 46
YPF Net Debt to EBITDA ratio is below the industry average NET DEBT TO EBITDA(1) 2017 Latam 2.9 Independents 2.6 YPF 2017 2,0 Majors 1,7 YPF 2022E 1.5 Europeans 1.2 2.1 Industry average(2) (1) Source: Bloomberg.…
Return to growth by increasing cash flow and reducing leverage KEY FINANCIAL METRICS 2018-2022 EBITDA(1) CAPEX NET DEBT DIVIDEND CAGR Bn USD / YEAR TO EBITDA YIELD 2018 - 2022 2018 - 2022 Target 2022 +10% 4/4.5 1.5x 3% area…
The share price does not reflect the companys fundamental value SUM-OF-THE-PARTS VALUATION EXERCISE MARKET MULTIPLES 2017, USD/SHARE 24.21 P1 Vaca Refining Marketing Chemicals Profertil YPF EE Metrogas Others(1) Firm Net…
CONTENT 01 Unlocking the value of YPF 04 Gas & Power 02 Upstream 05 Finance 03 Downstream 06 Q&A 51
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