Keep improving efficiency and preparing the future Leveraging integrated business model Tackling short term challenges Positioning Total strongly for the medium term Creating long term shareholder value 2016 Strategy &…
Continued volatility as oil market rebalances Industry investments reduced from 700 B in 2014 to 400 B in 2016 Short term supply-demand and OECD inventories Supply-demand outlook to 2020 Mb/d Mb/d 5 5-10 Mb/d unidentified 100…
Overcapacity impacting short term gas prices Long term outlook for gas and LNG remains favorable Gas prices Gas supply-demand /Mbtu Bcm 20 +2% per year 4,000 15 to be sanctioned shale 10 sanctioned 3% Decline New…
Tackling short-term challenges Being excellent at everything we can control Safety, Delivery, Cost and Cash
Safety, a core value Cornerstone of operational excellence Establishing one central and global 345 HSE organization A powerful tool with 230 experienced staff to be even more effective across whole organization…
Increasing Opex savings from 3 B to 4 B Locking in sustainable efficiencies 2015-18 Opex reduction B 4 B 3 B Corporate 2.4 B Downstream 1.5 B Upstream Achieved 2016 2017 2018 2015 2016 Strategy & Outlook 7
Total Global Services, new source of efficiency Service provider to business units IT (2013) Facility Creating new economies of scale management Accounting across the Group Total Global Services IT savings of 100 M already…
Committed to strong Capex discipline Sustainable Capex level from 2017 Capex, including resource renewal Upstream costs, Brent price B Base 100 in 2010, /b /b 18-19 B 15-17 B 100 -30% 50 0 2016 2017-20 2006 2008 2010…
Capturing deflation and simplifying design Zinia 2: marginal deep offshore field made profitable Reducing costs on Zinia 2 B -50% Simplifying subsea layout 2.8 B 2.8 Taking advantage of market effect Design 1.4 B Market…
Strong production growth Average growth of 5% per year 2014-20 Production Mboe/d +1-2% per year +5% post-2020 per year 2014-20 9 start-ups in 2015 4% +9% 4 projects already started up in 2016 2.35 10 projects under…
Focusing on cash generation Operational excellence and project delivery CFFO Downstream CFFO from Upstream start ups from 2015 B B 10 +2.5 B 10 7 B 2012 2016 2017 2020 ERMI (/t) 36 35 Brent (/b) 60 60 NBP (/Mbtu) 5.5 5.5…
Outperforming peers in first half 2016 Strong performance across all segments Adjusted net income - B Return on Equity 4 10% Cash flow from operations before working capital Upstream production growth* changes* 5.00% 5%…
Positioning Total strongly for the medium term Lowering breakeven of oil portfolio Expanding along gas value chain Capitalizing on customer-focused culture Developing low-carbon energy business
Oil, positioning Upstream on low cost assets Managing the portfolio to reduce breakeven Adding low cost assets Reducing exposure on high cost assets Al-Shaheen, 90 kb/d* Qatar, Total 30% Giant conventional offshore oil field Fort…
Oil, focusing Downstream on best-in-class assets Consolidating 7 B cash flow from operations and ROACE 20% Building on Downstream strength Restructuring Downstream base Satorp Saudi Arabia, Total 37.5% World-class, delivering as…
Growing integrated gas, Upstream Diversified portfolio of gas developments Yamal LNG - Russia West of Shetlands - UK Total 20%, 130 kboe/d* Total 60%, 50 kboe/d* Ichthys LNG - Australia Barnett - United States Total 30%, 110…
Growing integrated gas, Downstream Capturing margin along full value chain Marketing efforts to access new customers Launching 1 Mt/y ethane side cracker at Port Arthur Developing LNG customer base Expanding B2B and B2C…
Capitalizing on customer-focused culture M&S growing retail and lubricants at 4% per year 2 in retail outside North America Retail network Number of retail stations, Total and peers* Lubricants 30,000 4 million clients per day…
Developing a profitable segment in low-carbon business Dedicated organization to grow gas and renewables 5% of 2016 capital employed Developing downstream gas markets Gas and power Solar marketing 3 B 0.5 B Building an integrated…
Implementing strategy through portfolio management Asset sales & acquisitions B Aligning asset base with ambition in oil, 5 gas and renewables Monetizing non-core assets Fort Hills FUKA Geosel Atotech Saft Laggan GAPCO…
Integrating 2C roadmap into strategy Gradually decreasing the carbon intensity of our production mix Areas of focus to reduce CO2 emissions Bt CO2 Focusing on oil projects with low breakevens 50 s usual ess a Renewable Busin…
Creating shareholder value To be the most profitable European integrated major
Reducing cash breakeven Cash flow B 30 80 /b 2016 cash flow breakeven at 60 /b including 50 /b 2 B net asset sales CFFO covering 2017 Capex (including resource renewal) and dividend cash-out at 55 /b 2016 2017 2020 Ending…
Priority to profitability and strong balance sheet Resilient to volatile price environment Net debt-to-equity ratio % 30% Targeting ROE 10% at 60 /b Long term gearing guidance of 20% Buyback scrip shares 2014 2015…
Attractive return in a volatile market 5.8% dividend yield over past 12 months Total and peers share price with dividend reinvested and Brent Base 100, January 2013 100 Peers* Brent Jan 2013 Jan 2014 Jan 2015 Jan 2016…
Keep improving efficiency and preparing the future Leveraging integrated business model Tackling short term challenges Positioning Total strongly for the medium term Creating long term shareholder value Committed to…
Exploration & Production
Growing Upstream value Maximizing returns from existing assets Operational excellence Cost discipline Profitability & cash 2016 Strategy & Outlook 29
Improving operational performance Sustained efficiency gains across our operations Production efficiency* operated assets West Africa deep offshore drilling % Non-productive time % 95% 4% -25% 17.8 16.0 90% 13.4 85%…
Further driving down E&P Opex Reinforcing competitive advantage on costs Operating costs (ASC932) Operating costs (ASC932) for Total and peers /boe /boe 20 9.9 10 -50% Chevron 7.4 Shell ExxonMobil 6 5 10 BP 2014 2015…
Cementing a lean cost culture Systematic and disciplined approach delivering sustainable results Consistently challenging our processes 2014-16 UK opex savings Setting global best practices Supply Chain Angola FPSOs joint operating…
Capturing further cost deflation in 2016 Examples of reductions achieved through renegotiation and new tenders -60% -50% -40% -30% -20% -10% 0% Marine logistics Seismic acquisition Well services Sept 2015 Rigs Sept 2016…
Delivering project start-ups 900 kboe/d from start-ups and sanctioned projects Yamal LNG Fort Hills Termokarstovoye West of Shetlands Martin Linge Surmont 2 West Franklin 2 Eldfisk 2 Kashagan Tempa Rossa Timimoun…
Al Shaheen redeveloping giant mature field Total 30%, Qatar 25-year concession effective mid-2017 300 kb/d, long plateau Low breakeven oil project, free cash flow positive from year one Maximizing oil recovery through…
Yamal delivering worldclass LNG project Total 20%, Russia 16.5 Mt/y capacity, 3 LNG trains 95% of LNG committed Targeting start-up by end-2017 First train 80% complete 90% of wells drilled for start-up 18 B-equivalent…
Libra unlocking deep offshore value Total 20%, Brazil 3-4 Bb resources in North West panel alone with excellent well productivity Start-up of 50 kb/d EWT vessel in 2017 Phased development with FID of first FPSO planned in…
Uganda advancing giant onshore field Total 33% Uganda Hoima Agreement on export pipeline route Kampala through Tanzania Nairobi 25-year production license awarded Kenya Lamu Moving toward FID, capturing deflation…
Gas, Renewables & Power
From gas to power Gas, renewable and power markets becoming more integrated Global power generation, source IEA TWh 1.5% CAGR 30,000 Gas becoming largest primary source Solar Wind of power Biofuels Hydro Renewables growing…
Developing a complementary portfolio Building on a base of quality assets 5% of 2016 capital employed Gas and power Solar marketing 3 B Global trading for gas and LNG 0.5 B Gas and power B2B marketing in Europe and Lampiris…
Growing integrated gas portfolio Capturing full value chain margin Integrated gas portfolio Bcm/y +20% x2 x2 +50% +70% 80 Gas representing half of Group reserves Growing portfolio, developing new markets Signed 2 Mt/y long…
Unlocking new LNG demand Opening new markets Floating Storage Regasification Units (FSRU) LNG new markets World overview Mt/y 150 Africa Middle East Southeast Asia Latin America Existing Under construction Proposed…
Expanding gas and power marketing Growing demand for combined offering Growing presence in European B2B and B2C Number of B2B sites supplied 800,000 x7 2012 2015 2020 Existing Developing B2C 2016 Strategy & Outlook 44
SunPower, a high quality platform in solar Leading integrated player Decentralized power generation 2 in US residential Solar cell and panel production Deploying 350-450 MW in 2016 12% market share Power plant design,…
Energy storage, key to growing profitable renewables Solid cash generation to boost future growth Saft 2015 cash flow allocation M 110 Other 100 years of history 850 M revenue in 2015 Dividend and Leadership on 75% of revenue…
Adapting pace of growth to deliver profits Leveraging integrated portfolio to maximize value Cash flow from operations B 1 Expanding downstream gas Building a profitable business in fast growing renewables 1 B CFFO per…
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