Slide 1: Results & Outlook
Results & Outlook February 2017
Slide 2: Disclaimer
Disclaimer This document may contain forward-looking information on the Group (including (ii) Inventory valuation effect objectives and trends), as well as forward-looking statements within the meaning of the The adjusted results of the Refining & Chemicals and Marketing & Services segments Private
Slide 3: Safety, a core value
Safety, a core value Cornerstone of operational efficiency Total Recordable Injury Rate for Total and peers* Safety and operational performance go hand in hand Per million man-hours 3 3 93% 2 2 0.9 1 1 88% 2010 2016 2014 2015 2016 E&P TRIR E&P availability (%) Fatality-free for 435 days, 1 fatality
Slide 4: Integrating climate into our strategy
Integrating climate into our strategy Gradually decreasing the carbon intensity of our energy mix Global energy demand Mboe/d IEA 2°C scenario 300 Strategy in line with anticipated market trends Solar / Wind Bio-energy Hydro Nuclear • Focusing on low breakeven oil projects Coal Oil • Expanding along
Slide 5: Production cuts rebalancing oil markets
Production cuts rebalancing oil markets OPEC and non-OPEC agreement being implemented Short term supply-demand and OECD inventories Mb/d -1.8 Mb/d supply cuts Much lower industry investment since 2014 95 Supply Demand Demand remains strong ~3 Bb OECD commercial stocks Inventories still high end-2016
Slide 6: Lower prices stimulating LNG demand
Lower prices stimulating LNG demand Floating regasification units unlocking 100 Mt/y of new demand by 2025 2015-16 LNG demand Floating Storage Regasification Units (FSRU) Mt/y Global overview +7% 270 Rest of world Middle East: +90% Rest of Asia: +30% 250 China: +40% India: +30% 230 2015 2016 Existin
Slide 7: 2016 Results & 2017 Objectives
2016 Results & Patrick de La Chevardière 2017 Objectives Chief Financial Officer
Slide 8: Best-in-class results in challenging environment
Best-in-class results in challenging environment Resilient Upstream and Downstream performance 2016 Adjusted net income Adjusted net income and production B$ % change 2016 vs 2015 for Total and peers* 8.3 B$ Production 5% Marketing & Services Refining & Chemicals Gas, Renewables & Power Exploration
Slide 9: Relentlessly reducing costs
Relentlessly reducing costs Exceeding targets and accelerating competitive advantage 2016-18 Opex reduction Operating costs (ASC932) for Total and peers B$ $/boe 4 B$ 3.5 B$ Chevron Shell 2.8 B$ Downstream ExxonMobil & Corporate 10 BP 1.5 B$ Upstream 5.9 $/boe 2015 2016 2017 2018 2012 2016 Feb-16 gu
Slide 10: Maintaining discipline on investment
Maintaining discipline on investment Sustainable level of Capex for medium-term growth Capex, incl. resource renewal Optimizing design and execution, capturing deflation B$ 18.3 B$ 16-17 B$ 1.3 B$ 2.8 B$ 15-17 B$ 0.9 B$ 1.4 B$ Drilling Drilling Facilities Facilities 2016 2017 2018-20 2013 2016 2014
Slide 11: Delivering outstanding production growth
Delivering outstanding production growth Increasing 2017 production with mix of ramp-ups, new ventures and start-ups Production Production from start-ups and new ventures Mboe/d kboe/d Tempa Rossa* Ichthys* > 4% Yamal* +4.5% Edradour Glenlivet +9% Libra Pioneiro 600 Moho North 2.5 Kashagan Incahuasi
Slide 12: 136% reserve replacement rate at constant price (54 $/b)
136% reserve replacement rate at constant price (54 $/b) > 12 years of proved reserves, > 20 years of proved and probable reserves Proved reserves Bboe 11.6 11.9 Price impact 12 11.5 As per SEC rules, Surmont proved undeveloped reserves debooked at 42.82 $/b (NPV0 breakeven ~45 $/b) 0 2015 2016 2016
Slide 13: Exploration delivering promising results
Exploration delivering promising results ~500 Mboe added in 2016, improving capital efficiency 2016 2017 1.4 B$ 1.25 B$ spent 19 budget 27 wells wells Bulgaria, Black Sea Cyprus, offshore US, Egypt, North Platte onshore Myanmar, Aruba, offshore gas offshore Brazil, Malaysia, Nigeria, offshore offsho
Slide 14: Investing for the future
Investing for the future Growing profitable low carbon business and R&D budget through the cycle Gas, Renewables & Power positive contribution Investment in innovation and R&D for oil & gas* Proforma 2016 B$ 500 M$ > 9% 4.7 B$ +5% CFFO ROACE Capital employed per year 0.7 Among the largest global gas
Slide 15: High-return Downstream achieving ~7 B$ CFFO target
High-return Downstream achieving ~7 B$ CFFO target Sustainable contribution from diversified portfolio of global businesses Downstream CFFO* 2016 Downstream ROACE for Total and peers* B$ % 34% ~7 B$ ROACE 7 30% 25 $/t 2015 2016 2017 ERMI ($/t) 49 34 35 * Before working capital changes, at replacemen
Slide 16: Successfully executing 2015-17 asset sale program
Successfully executing 2015-17 asset sale program 2015-17 asset sale program ~80% complete 10 Monetizing non-core assets 5 B$ Atotech Gina Krog 12x Ebitda for Atotech, closed Jan 31, 2017 Kharyaga FUKA Laggan Fort Hills Schwedt Adding to financial strength through the cycle Turkey Atotech 2015-17 20
Slide 17: Maintaining strong balance sheet through the cycle
Maintaining strong balance sheet through the cycle Most profitable super-major Net debt-to-equity ratio % 31% 27% 28% Atotech sale ROE of 9% in 2016 at 44 $/b Gearing guidance of 20% 2.1 B$ non-recurring items in 2016 2014 2015 2016 Brent ($/b) 99 52 44 2016 Results & Outlook 16
Slide 18: Delivering our strategy
Delivering our strategy Emerging stronger after tackling 2015-16 challenges 2016 objectives Target Realized Capex, ~19 B$ 18.3 B$ incl. resource renewal Cost reduction 2.4 B$ 2.8 B$ Upstream Opex 6.5 $/boe 5.9 $/boe Production growth > 4% +4.5% Downstream CFFO* ~7 B$ 6.8 B$ 2016 net asset sales 2 B$
Slide 19: Outlook
Outlook Patrick Pouyanné Chairman and CEO
Slide 20: Outperforming peers in 2016
Outperforming peers in 2016 Most profitable super-major Adjusted net income - B$ Return on Equity 10% 8 Cash flow from operations* Upstream production growth* 5% -45% -2% * % change 2016 / 2015 Total, BP, Chevron, ExxonMobil, Shell / BG pro forma, based on public data 2016 Results & Outlook 19
Slide 21: Capitalizing on strengths to secure future growth
Capitalizing on strengths to secure future growth Taking advantage of current market conditions Maintaining discipline to reduce breakeven Taking advantage of low-cost environment • Sanctioning high-return projects • Adding attractive resources Increasing leverage to oil price Committed to creating
Slide 22: Sanctioning high-return projects in low-cost environment
Sanctioning high-return projects in low-cost environment Targeting 10 Upstream FIDs over the next 18 months Upcoming project FIDs Upstream pre-FIDs production & IRR at 50 $/b 100% capacity, Total share kboe/d net Giant projects ~350 Libra 1 Brazil 150 kb/d 20% kboe/d 400 South Pars 11* Iran 370 kboe
Slide 23: Filling post-2020 pipeline
Filling post-2020 pipeline Accessing low cost resources Deep Offshore LNG and integrated Gas Lapa* Barnett shale Brazil US Total 35% op. Total 100% Renewing > 2 Bboe resources Iara* Tellurian LNG Brazil US Total 22.5% Total 23% < 2 $/boe acquisition cost Middle East Africa Lake Albert Securing long
Slide 24: Developing major position in pre-salt Brazil
Developing major position in pre-salt Brazil Becoming operator in the Santos basin Accessing top-tier assets at a competitive price Strategic alliance with Petrobras, Upstream and Downstream Rio de Janeiro Brazil Quick return • Lapa start-up in 2016 São Paulo Libra, 650 kb/d • Iara start-up in 2018
Slide 25: Adding giant low cost assets in the Middle East
Adding giant low cost assets in the Middle East Strengthening core area with three long plateau fields ADCO, UAE Total 10% asset leader Improved fiscal terms > 3 Bboe resources 1.6 Mb/d Al-Shaheen, Qatar > 300 kboe/d production Total 30% technical leader Quick return on investment 300 kb/d > 1 B$/y
Slide 26: Growing integrated gas portfolio
Growing integrated gas portfolio Innovative approach to expand along gas value chain Developing integrated LNG portfolio Tellurian Driftwood LNG (~20%) • Low cost modular liquefaction plant • Integrated project with low cost gas Tellurian Driftwood LNG Ivory Coast regasification (34%) Ivory Coast •
Slide 27: Expanding US portfolio
Expanding US portfolio Growing Upstream operations, world-class petrochemicals ~1 B$ Cash flow from operations Barnett acquisition North Platte discovery > 500 Mb North Platte discovery in deepwater Gulf of Mexico Taking advantage of shale gas revolution Tellurian LNG Port Arthur side cracker 2016 R
Slide 28: Increasing leverage to oil price
Increasing leverage to oil price % change of 2017 CFFO for 10 $/b Brent* Sensitivity to oil price for Total and peers 15% 2018 Increasing oil-leveraged cash-accretive 2017 production 2015 2.5 B$ cash flow impact in 2017 for 10 $/b change in Brent Sensitivity growing further beyond 2017 * Total estim
Slide 29: Start-ups driving cash-accretive growth
Start-ups driving cash-accretive growth 12 projects coming on stream in 2017-18 2017-18 start-ups Average margin per barrel in 2020 % progress CFFO at 60 $/b - $/boe kboe/d Share 100% 30 Moho Nord 100 54% Libra Pioneiro 50 20% x2 Edradour-Glenlivet 35 60% Yamal LNG 450 20% Ichthys LNG 340 30% Tempa
Slide 30: Sustainable contribution from diversified Downstream
Sustainable contribution from diversified Downstream Stronger Refining coupled with competitive Chemicals and Marketing Refining CFFO 2017 Downstream CFFO B$, in 35 $/t ERMI environment 3 Marketing & Services Refining > 50% ~7 B$ Chemicals 2012 2017 Best-in-class petchems in US and Asia-Middle East
Slide 31: Leveraging world-class Asia-Middle East platforms
Leveraging world-class Asia-Middle East platforms High return expansion opportunities ~1 B$ net result in 2016 > 30% ROACE Saudi Arabia, 400 kb/d deep conversion refinery Best-in-class projects • Qatar side cracker • Korea cracker expansion • SATORP debottlenecking to > 440 kb/d Korea, 1 Mt/y cracke
Slide 32: Retail and lubricants delivering CFFO growth
Retail and lubricants delivering CFFO growth Strong European base and leading positions in high growth areas Retail and lubricants CFFO Marketing & Services key countries B$ +40% 1.5 High growth areas Europe 2012 2016 2017 Increasing sales by 4% per year 10 countries generating 75% of results 2016 R
Slide 33: Turning the corner on cash breakeven in 2017
Turning the corner on cash breakeven in 2017 Harvesting benefits of production growth and cost reduction Cash flow B$ 25 Cash flow increasing by ~1 B$ between 2016 60 $/b and 2017 in constant price environment 50 $/b 44 $/b Pre-dividend breakeven < 40 $/b in 2017 CFFO covering Capex and 2017 scrip-d
Slide 34: Committed to shareholder return
Committed to shareholder return Sustainable business model with increasing upside 5-year shareholder return for Total and peers Preserving financial flexibility in a volatile environment with scrip dividend 5% Eliminating discount on scrip dividend with Brent at 60 $/b Increasing dividend * BP, Chev
Slide 35: Capitalizing on strengths to secure future growth
Capitalizing on strengths to secure future growth Building on a stronger base Relentlessly reducing costs and maintaining Capex discipline to lower breakeven Delivering near term accretive growth and increasing leverage to oil Taking advantage of low cost environment to sanction projects and add res
Slide 36: Results & Outlook
Results & Outlook February 2017