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Strategy and Outlook – Total SA

Total SA · Sep 25, 2018 · 41 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Strategy and Outlook – Total SA – slide 1
    Strategy and Outlook September 2018
  2. Strategy and Outlook – Total SA – slide 2
    Consistently delivering Maintaining strong discipline on costs while growing production Managing portfolio countercyclically to increase cash flow and profitability Building a responsible oil & gas and low carbon electricity…
  3. Strategy and Outlook – Total SA – slide 3
    Safety, a core value Cornerstone of operational efficiency Total Recordable Injury Rate for Total and peers* Group six key HSE priorities Per million man-hours 2 Manage risks to safeguard Prevent people, the environment and…
  4. Strategy and Outlook – Total SA – slide 4
    Supportive oil market fundamentals Supply-demand and OECD inventories Mb/d; days of demand cover +1.4 Mb/d demand in 2018* Demand strong but sensitive to price and global economic growth uncertainty Supply 95 Demand Favorable…
  5. Strategy and Outlook – Total SA – slide 5
    Strong LNG demand growth driven by Asia Constructive government policies 2015-30 LNG demand 2015-30 LNG supply Mt/y Mt/y +5% per year Other 500 500 Middle East To be Demand sanctioned Europe Under Rest of Asia…
  6. Strategy and Outlook – Total SA – slide 6
    Electricity demand to increase by 50% from 2015-40 2015-40 electricity generation TWh, range of IEA scenarios* Growth driven by non-OECD countries, 40,000 Electricity generation in particular China and India from 36,000 to…
  7. Strategy and Outlook – Total SA – slide 7
    Consistently delivering
  8. Strategy and Outlook – Total SA – slide 8
    Consistently delivering Production Opex Mboe/d /boe Announced target 10 2.6 2.2 2015 2016 2017 2015 2016 2017 Capex Cumulative asset sales B B 24 10 12 2015 2016 2017 2015 2016 2017 2018 Strategy and Outlook 8
  9. Strategy and Outlook – Total SA – slide 9
    Outstanding production growth Best-in-class growth 2018-20 Production Mboe/d 6-7% per year 3 Under development 2015-18 M&A In production 2017 2018 2020 2022 5% CAGR from 2017-22 2018 Strategy and Outlook 9
  10. Strategy and Outlook – Total SA – slide 10
    2018-20 major start-ups Delivering 600 kboe/d by 2020 kboe/d Share Country 2018-20 average cash margin Yamal LNG T1 150 29.7% Russia CFFO /boe Fort Hills 180 24,5% Canada Vaca Muerta 100 41% Op. Argentina 2018 Timimoun 30 38%…
  11. Strategy and Outlook – Total SA – slide 11
    Relentlessly reducing operating costs Opex savings vs. 2014 base Production costs (ASC 932) B /boe 5 B 9.9 4.2 B 3.7 B Downstream & Corporate 5.5 < 5.5 Upstream 2017 2018 2020 2014 2018 2020 Confirming cost saving…
  12. Strategy and Outlook – Total SA – slide 12
    Simplifying processes and organization Total Global Services generating results ONE TOTAL 400 M savings in 2017 (Opex + Capex), One Total Chair per country targeting 1 B by 2020 Cross-segment support functions 40% of procurement…
  13. Strategy and Outlook – Total SA – slide 13
    Discipline on capital investments 15-17 B per year from 2018-20 Capital investment* 2018-20 capital investment B Downstream 16-17 15-17 15-17 Exploration & Production iGRP: Integrated Gas Renewables & Power 2018 2019…
  14. Strategy and Outlook – Total SA – slide 14
    2018 Exploration: first successes of new strategy and team Ballymore, US Sururu, Brazil Shwe Yee Htun, Myanmar Glendronach, UK Total 40% Total 22.5% Total 40% Total 60% Giant deepwater oil Giant deepwater oil Offshore gas Nearby…
  15. Strategy and Outlook – Total SA – slide 15
    Downstream consistently delivering 7 B/y CFFO While selling 7 B of assets over 2015-17 Downstream CFFO B Continuously optimizing Refining & Chemicals 7 Upgrading Antwerp Debottlenecking Satorp Consistently growing Marketing &…
  16. Strategy and Outlook – Total SA – slide 16
    Driving down the breakeven Post-dividend organic breakeven /b Discipline on spend 100 High margin production Brent price Robust Downstream 50 Increasing CFFO leverage to oil price 2.8 B for 10 /b Brent in 2018 3.3 B by…
  17. Strategy and Outlook – Total SA – slide 17
    Outperforming peers in 1H 2018 Production growth 1H18 vs 1H17 Downstream ROACE rolling 12-month % % 10% 30% 0% -10% ROE rolling 12-month Net-debt-to-capital % End-2Q18, % 30% 10% 15% Peers: BP, Chevron,…
  18. Strategy and Outlook – Total SA – slide 18
    Creating value through the cycle
  19. Strategy and Outlook – Total SA – slide 19
    Countercyclical Upstream M&A creating value 25% portfolio change since 2015 Acquisitions B 7 Bboe resources added at < 2.5 /boe 2015-18 E&P 8.3 B acquisitions average Brent 50 ROACE at 60 /b (%) 10% 7-8% /b Opex (/boe) 4…
  20. Strategy and Outlook – Total SA – slide 20
    Maximizing value in the North Sea Integrating Maersk Oil assets and highgrading portfolio Maersk Oil accretive acquisition Divestment of high costs assets B Main acquisitions Tech. costs 20 /boe Main divestments Tech. costs 35…
  21. Strategy and Outlook – Total SA – slide 21
    Favorable cost environment to sanction new projects Significant spare capacity and opening new supply options Yards* & deepwater rigs** utilization rate Decrease of capital costs % Deepwater IHS Markit Q2-2018 100% 100 75% Spare…
  22. Strategy and Outlook – Total SA – slide 22
    Accelerating short cycle developments Portfolio of flexible and highly profitable projects Launching short cycle projects West Africa, sanctioning tie-back and B infill drilling opportunities 4 70 /b Usan infills Akpo…
  23. Strategy and Outlook – Total SA – slide 23
    Sanctioning high return projects to prepare future growth Launching 700 kboe/d by 2020 Arctic LNG 2 Troll, Ekofisk, 600 kboe/d, 22%* 360 kboe/d, 10% average Glendronach Johan Sverdrup 2 25 kboe/d, 60%, Op. 220 kb/d, 8% Cameron…
  24. Strategy and Outlook – Total SA – slide 24
    Building a responsible energy company on core strengths and growing markets
  25. Strategy and Outlook – Total SA – slide 25
    Integrating climate into strategy Taking into account anticipated market trends Global energy demand Mboe/d Focusing on IEA 2C oil projects scenario* with low breakeven 300 Renewables Nuclear Expanding along the Coal…
  26. Strategy and Outlook – Total SA – slide 26
    Reducing carbon intensity of our energy sales Responsible contribution to tackle climate challenge Carbon intensity Base 100 in 2015 (75 gCO2/kbtu) 100 Further improving our operations efficiency IEA NPS Growing in natural…
  27. Strategy and Outlook – Total SA – slide 27
    Oil & Gas: Building on our strengths Leveraging expertise in 7 core areas 1 Deepwater 2 LNG 3 Petrochemicals 4 Retail & Lubricants Africa 5 Market leader Middle East & North Africa 6 Partner of choice North Sea 7 2…
  28. Strategy and Outlook – Total SA – slide 28
    Leveraging deepwater expertise Reaching 500 kboe/d production by 2020 Deepwater production kboe/d Leader in Africa 500 Other US Brazil Growing in Brazil Africa 2017 2022-27 Gulf of Mexico, average the next wave 30…
  29. Strategy and Outlook – Total SA – slide 29
    Expanding along the integrated gas value chain Reporting Integrated Gas Renewable & Power segment from 2019 Production & Trading & Gas & Power Regasification Liquefaction Shipping Marketing 20 Mt/y LNG 40 Mt/y portfolio 20 Mt/y…
  30. Strategy and Outlook – Total SA – slide 30
    New wave of LNG projects located in all key supply regions Priority to low cost, brownfield projects 2025 LNG supply sources Global Market and TOTAL share Arctic LNG 2, 20 Mt/y, 22%** Giant low cost reserves Total 19.4% shareholder…
  31. Strategy and Outlook – Total SA – slide 31
    Executing Petrochemicals strategy Low cost feedstock on worldclass integrated platforms Petrochemical production* Mt/y 6 Naphtha US Borealis Nova JV New 1 Mt/y ethane cracker South Korea PE capacity increase to 1 Mt/y Cracker…
  32. Strategy and Outlook – Total SA – slide 32
    Well positioned for new IMO regulation Positive for E&P and R&C, a new opportunity for M&S Crude Oil Products value Alternative fuel Low sulfur crude value increasing HSFO decreasing, distillates increasing Development of LNG for…
  33. Strategy and Outlook – Total SA – slide 33
    M&S: Moving to growing markets Creating value through portfolio management Marketing & Services CFFO 2015-18 portfolio management B 2.5 B 3 Expanding in large, fast growing markets Growth businesses Africa retail Mexico, Egypt,…
  34. Strategy and Outlook – Total SA – slide 34
    US, a land for growth: LNG, petrochemicals, deepwater Building on abundant low cost gas resources 1.5 B/y 1 B/y 10 B CFFO Capital Strengthening US GoM deepwater position Capex Over 2018-22 employed with Ballymore, North Platte…
  35. Strategy and Outlook – Total SA – slide 35
    Building a low carbon electricity business Integrated approach: production trading and marketing From Gas to Electricity 2 GW capacity in Europe Marketing 7 M customers by 2022 5* CCGTs in France and Belgium European market…
  36. Strategy and Outlook – Total SA – slide 36
    Increasing CFFO in all segments E&P, profitably generating cash iGRP, investing for growth Downstream, robust cash B B B* 20 20 20 70 /b 60 /b 50/b 54 /b CFFO CFFO 2017 2020 2017 2020 2017 2020 * ERMI 35/t…
  37. Strategy and Outlook – Total SA – slide 37
    Delivering shareholder return
  38. Strategy and Outlook – Total SA – slide 38
    Clear visibility on cash flow growth Debt adjusted cash flow (DACF)* B 30 70 /b Strong contribution from 2018 project start-ups: Kaombo, Ichthys, Egina 3 B/y by 2020 60 /b 22.2 60 /b 50 /b Solid cash generation from…
  39. Strategy and Outlook – Total SA – slide 39
    Clear priorities for cash flow allocation for 2018-20 1 2 3 4 Capital Balance Share Dividend investment sheet buyback 10% increase Maintain 15-17 B per year over 3 years gearing < 20% 5 B over 2018-20 No scrip dilution…
  40. Strategy and Outlook – Total SA – slide 40
    Executing shareholder return policy Delivering best-in-class TSR 4-year TSR %, Total and peers* as of end August 2018 20% 2018 interim dividend increased by 3.2% 10% Share buyback: 1.5 B in 2018 on top of 2 B of scrip shares…
  41. Strategy and Outlook – Total SA – slide 41
    Consistently delivering for the benefit of shareholders Delivering on objectives Outstanding production growth Maintaining Capex discipline Best-in-class Downstream Strong cash flow growth to 2020 and clear roadmap for…

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