Totalenergies Se · EURONEXT:TTE
Totalenergies — Investor Day (September 2020)
60 slides from Totalenergies's investor day presentation, September 2020
Slide 1: From Net Zero ambition to Total strategy
From Net Zero ambition to Total strategy September 2020
Slide 2: Safety, Total's core value
Safety, Total’s core value Cornerstone of operational efficiency & sustainability Coping with the Covid-19 health crisis Total Recordable Injury Rate for Total and peers* Per million man-hours 1.5 Our employees 1. 1.0 05 Our customers Contractors 0.8 Our operations Group Staff 0. 0.5 73 2015 2016 20
Slide 3: Increasing energy while decreasing carbon
Increasing energy while decreasing carbon
Slide 4: Global trends underpinning evolution of energy markets
Global trends underpinning evolution of energy markets Natural Gas • Key in energy transition, available, affordable and complement to renewables • LNG driving growth • Will get greener with biogas and H2 Growing population in emerging countries aiming at higher living standards Electricity leading
Slide 5: Our Ambition: Getting to Net Zero
Our Ambition : Getting to Net Zero Total shares the ambition to get to Net Zero by 2050 together with society for its global business (Scope 1+2+3) 3 major steps to get Total to Net Zero Net Zero on Operations by 2050 or sooner 1 (Scope 1+2) 2 Net Zero in Europe by 2050 or sooner (Scope 1+2+3) 60% o
Slide 6: Transforming Total into a broad energy company
Transforming Total into a broad energy company Natural Gas • Grow LNG (#2 player) and develop biogas / clean H2 • Promote natural gas for power and mobility Electricity • Accelerate investments in low carbon electricity primarily from renewables • Integrate along the electricity value chain (product
Slide 7: Growing energy production
Growing energy production Mboe/d PJ/d 4 ~120 Electrons TWh Biogas 20 3 Gas 2 10 Biofuel 1 Oil 2019 2030 LNG and Electricity driving Profitable Growth 2020 Strategy and Outlook | 7
Slide 8: Reducing emissions
Reducing emissions New Commitments on Scope 3 emissions of our customers, in absolute value Scope 3 emissions* MtCO2e 400 Emerging world Europe 200 -30% Europe 2015 2030 Europe: -30% by 2030 on the way to Net Zero by 2050 Worldwide : 2030 lower than 2015 * From energy products used by our customers
Slide 9: Growing sales while adapting to demand
Growing sales while adapting to demand Energy sold to our customers PJ/y 12,000 % in sales Electrons 15% Biogas, H2 5% 50% 40% Natural Gas Biofuels 55% 35% Oil products 2019 2030 2020 Strategy and Outlook | 9
Slide 10: Aligning investments to become a broad energy company
Aligning investments to become a broad energy company Capital investments % Oil & Gas LNG Bio-businesses Renewables & Electricity 2015-20 2021-25 2026-30 Renewables & Electricity (B$/y) 1.5 >2 >3 % of Group Capex 10% > 15% > 20% 2020 Strategy and Outlook | 10
Slide 11: Increasing cash flow with double digit profitability
Increasing cash flow with double digit profitability CFFO* B$ 40 20 Oil & Gas LNG Renewables & Electricity 2H19-1H20 2025 2025 Brent ($/b) 51 50** 60** ROE > 10% at 50 $/b by 2025 * From businesses ** Same refining margin vs. 2H19-1H20 2020 Strategy and Outlook | 11
Slide 12: Competitive advantages to become a broad energy company
Competitive advantages to become a broad energy company Building on legacy expertise to grow in Renewables and Electricity Customer proximity Global reach / global brand Trading expertise in oil, gas and electricity Integration Gas to Power Offshore expertise Project management Worldwide footprint O
Slide 13: One Tech: integrating all technical expertise to support transformation
One Tech: integrating all technical expertise to support transformation Concentrating all Bringing expertise to Group’s technical support new energy expertise growth One Tech In place by Fostering innovation Summer 2021 and cross fertilization > 3,300 Engineers in a central organization 2020 Strateg
Slide 14: Increasing energy in gases, electrons and liquids
Increasing energy in gases, electrons and liquids
Slide 15: Gases
Gases
Slide 16: Resilient LNG demand growth
Resilient LNG demand growth Medium-term LNG supply & demand Mt/y Strong +10%/y 2015-19 growth supported by coal-to-gas switch 500 Demand growth Sanction delayed +7% growth in 1H20 vs. 1H19 +5 to 7%/y despite Covid-19 To be sanctioned Under construction Project sanction delays due to crisis will tigh
Slide 17: Prominent position across the integrated LNG value chain
Prominent position across the integrated LNG value chain LNG global portfolio Yamal LNG 50 Mt/y Snøhvit LNG Arctic LNG 2* LNG sales by 2025 Rotterdam Cove Point LNG Skikda ECA LNG Arzew ELNG Cameron LNG + T4 Sohar LNG Freeport LNG Sabine Pass LNG Qatargas Qalhat LNG & Oman LNG Adnoc LNG Oman Yemen L
Slide 18: Flagship LNG projects fueling 2025 growth
Flagship LNG projects fueling 2025 growth < 3.5 $/Mbtu cost delivered to Asia Russia - Arctic LNG2 Nigeria LNG Train 7 Mozambique LNG Total 21.6%* - First LNG end-2023 Total 15% - First LNG 2023 Total 26.5% - First LNG 2024 Leveraging Yamal LNG success Low cost expansion World-class gas resource Low
Slide 19: A rich portfolio to feed low cost LNG growth post-2025
A rich portfolio to feed low cost LNG growth post-2025 LNG production Mt/y Russia giant Mozambique giant Arctic resources Area 1 resources 40 20 US brownfield trains Papua LNG (Cameron, ECA) 2020 2025 2030 Large resource base providing options to deliver production growth by 2030 2020 Strategy and O
Slide 20: Growing integrated LNG positions
Growing integrated LNG positions 2nd largest worldwide player LNG sales Supply by source Mt/y % 100% Supply from ~x2 3rd party Spot 60 50% Supply from equity JVs 30 Equity JV sales to 3rd party 2020 2025 2030 2020 2025 Creating value from scale and arbitrage 2020 Strategy and Outlook | 20
Slide 21: Europe: developing a customer portfolio to pull LNG value chain
Europe: developing a customer portfolio to pull LNG value chain 2025 Customers CCGT (~5 GW) ~2 Mt consumed Midstream Supply Regasification capacities LNG Portfolio 11 Mt/y out of 20 Mt/y 11 Mt/y out of 45 Mt/y Marketing (4 M gas customers) ~9 Mt sold 2020 Strategy and Outlook | 21
Slide 22: Integrated LNG delivering cash flow growth
Integrated LNG delivering cash flow growth Creating value from scale and arbitrage CFFO B$ 60 $/b 4 50 $/b 40 $/b 2 2019 2025 Brent ($/b) 64 50 NBP ($/Mbtu) 4.9 5 JKM ($/Mbtu) 5.5 5.5 2020 Strategy and Outlook | 22
Slide 23: Relentlessly reducing methane emissions
Relentlessly reducing methane emissions < 0.1% Intensity* of Upstream methane emissions operated Gas Mt CO2e assets -45% 2 2010 2015 2019 2025 Near Zero emissions * Volume CH 4 / volume of net gas export 2020 Strategy and Outlook | 23
Slide 24: Green Gas: decarbonizing natural gas with Biogas and H2
Green Gas: decarbonizing natural gas with Biogas and H2 Biomethane Clean hydrogen Production TWh/y 6 4 2 Blending natural gas with clean H2 for CCGT Producing clean H2 for industries and processes 2025 2030 Supplying clean H2 for buses, trains, private fleets… trucks in the future Supplying > 10% of
Slide 25: Electrons
lElectrons
Slide 26: Low carbon electricity: growing and integrating along the chain
Low carbon electricity: growing and integrating along the chain 2025 Production CCGT ~5 GW* Trading ~20 TWh net Supply & Aggregation 2025 Customers Marketing 9 M customers ~80 TWh Renewables Storage 35 GW* ~30 TWh net Grid balancing * Gross capacity 2020 Strategy and Outlook | 26
Slide 27: Renewables: strengthening the Group business model and adding long-term value
Renewables: strengthening the Group business model and adding long-term value Predictable cash flow Capital light model with long term upside > 10% ü Guaranteed PPA, CfD 1 Development ü Corporate PPA 5-6% opportunities 2 Leverage (70/30) ü Upsides • Tail value beyond PPA 3 Farm Down (~50%) • Green H
Slide 28: Building on 2020 dynamic to raise the bar
Building on 2020 dynamic to raise the bar +10 GW in 2020 with equity return > 10% Gross renewable capacity GW 35 GW 40 30 Spain Yet to find 20 France Wind Solar 10 Qatar Seagreen In development India In construction In operation* Already in 2025 portfolio Capturing profitable opportunities with low
Slide 29: Growing low carbon electricity production
Growing low carbon electricity production Electricity net production TWh/y kboe/d 120 500 50 TWh 60 250 2020 2025 2030 Gas fired power plants Renewables Building a world leader in renewables: 35 GW* in 2025, +10 GW/y beyond 2025 * Gross capacity 2020 Strategy and Outlook | 29
Slide 30: Global footprint for building a unique renewables portfolio
Global footprint for building a unique renewables portfolio Europe 15,000 MW Middle East US 2,000 MW 3,000 MW China 3,000 MW Rest of Asia 2,000 MW Africa India 1,000 MW 6,000 MW South America 3,000 MW Presence by 2025 New regions rebalancing Group geopolitical profile 2020 Strategy and Outlook | 30
Slide 31: Pioneer in floating offshore wind technology
Pioneer in floating offshore wind technology Up to 1,500 MW Up to 400 MW > 2,000 MW UK UK South Korea Seagreen Erebus Bada One of the largest UK First floating offshore Scaling up in offshore wind projects wind floating offshore wind 51% Total / 49% SSE 80% stake 50% Total/50% Macquarie 3.7 B$ proje
Slide 32: Visibility on Renewables & Power value creation
Visibility on Renewables & Power value creation Production NOI TWh net 50 TWh B$ 1 B$ 11 TWh 0.2 B$ 2019 2020 2021 2022 2023 2024 2025 2019 2020 2021 2022 2023 2024 2025 CFFO Capital employed B$ B$ > 1.5 B$ 15 B$ 6 B$ 0.1 B$ 2019 2020 2021 2022 2023 2024 2025 2019 2020 2021 2022 2023 2024 2025 2020
Slide 33: Liquids: value over volume
Liquids: value over volume
Slide 34: Oil markets: low investments to trigger price rebound
Oil markets: low investments to trigger price rebound Upstream investments* B$/y Underinvestment ~ 700 Fewer FID in 2020 ~ 400 ~ 300 4-5%/y decline rate Uncertain shale oil dynamic 2014 2017-19 2020 Annual capacity of sanctioned projects** Mb/d Reduced supply 1.9 0.25 Supportive for oil price medium
Slide 35: Integrating along the oil value chain
Integrating along the oil value chain Mb/d 2 Biofuels 1 2019 2025 2030 Liquid production Refining capacity Oil product sales Adapt refining capacity and sales to demand in Europe Growing biofuels 2020 Strategy and Outlook | 35
Slide 36: Constantly highgrading portfolio to increase resilience
Constantly highgrading portfolio to increase resilience 30% Upstream portfolio change over 2015-20 Group cash breakeven* Upstream production costs** 120 > 100 $/b 10 90 5 $/boe 60 5 30 < 25 $/b 2014 2016 2018 2020-25 2014 2016 2018 2020-25 Capex efficiency and resilient Downstream Permanent focus on
Slide 37: Middle East and North Africa low cost oil underpinning Group resilience
Middle East and North Africa low cost oil underpinning Group resilience at 40 $/b #1 IOC oil producer in MENA** > 650 < 3.5 ~10% kboe/d $/boe 2020 ROACE production* 2020+ Opex at 35 $/b in 2020 Libya Iraq Qatar Waha, 16.3% Halfaya, 22.5% Al-Shaheen, 30%, op. El Sharara 12-15% ~40% of Group oil resou
Slide 38: Building material position in low cost Brazil pre-salt deep offshore
Building material position in low cost Brazil pre-salt deep offshore ~1.5 B$ >150 ~4.5 CFFO kboe/d $/boe ~1 Bboe pre-salt resources in 2025 production Opex ASC932 at 50 $/b in 2025 2021+ Developing giant low-breakeven Rio de Janeiro São Paulo Mero and Iara fields BRAZIL C-M-541, 30%* Op. Mero, 20% L
Slide 39: Exploration focusing on low development cost
Exploration focusing on low development cost Budget capped at 1 B$/y WoodMac most admired High Impact and low cost explorer* Nearby facilities Suriname – Block 58 Central North Sea – Nearby Exploration Canje 10 0m Glengorm Culzean N OR Orinduik Maka Central UK WAY Elgin- Sapakara West 10 GUYANA Kwas
Slide 40: Large portfolio of profitable low cost oil projects
Large portfolio of profitable low cost oil projects Countercycle 2020 FIDs Mero 3 – Brazil Total 20% - First oil 2024 > 15% ~16 $/boe • • Production 150 kb/d (100%) Giant reserves IRR at 50 $/b avg. technical Ekofisk cost* • Technical costs <20 $/b • > 20% IRR at 50 $/b • Carbon intensity 23 kgCO2/b
Slide 41: Net zero by 2050 or sooner across Total's worldwide operations
Net zero by 2050 or sooner across Total’s worldwide operations Scope 1 & 2 emissions from operated oil and gas facilities All sites mobilized Mt/y – CO2e on carbon footprint reduction 50 46 41.5 < 40 40 Acquisitions Developing strong internal & start-ups from 2015 low-carbon culture 25 All levers ac
Slide 42: Becoming a leader in renewable diesel
Becoming a leader in renewable diesel Capturing synergies with existing assets Renewable diesel production Mt/y Converting Developing on Co-processing existing assets existing platforms 5.0 La Mède: 500 kt/y 300 kt/y in Europe, Evaluating 500 kt/y starting-up over project on Daesan Zero oil platform
Slide 43: Decreasing Scope 3 emissions of our customers by adapting energy sales to market evolution
Decreasing Scope 3 emissions of our customers by adapting energy sales to market evolution
Slide 44: Actively shaping demand
Actively shaping demand Adapting to customers, shifting sales to gas and electricity • Promote renewables and gases Power • Develop storage solutions generation • No more fuel oil sold to power generation from 2025 • EVs • CNG, LNG, biogas and H2 Mobility • Biofuels • SAF for the future • Promote na
Slide 45: Growing biofuels in our sales mix
Growing biofuels in our sales mix Biofuel sales kboe/d 300 ü Largest biofuel retailer in Rest of Europe the world ü Actively promoting E85 in France 150 Europe ü Expanding biofuels retail in Brazil 2019 2025 2030 Biofuels representing 10 to 15% of fuel sales by 2030 2020 Strategy and Outlook | 45
Slide 46: Gases for mobility
Gases for mobility LNG bunker fuel Natural Gas Hydrogen for marine transportation for road transportation for road transportation Building global supply chain for > 500 NGV stations in the US1 26 hydrogen stations in Germany LNG bunker fuel Expanding NGV. By 2025: (> 25% of the H2 MOBILITY Long-term
Slide 47: Developing top tier positions in Electric mobility value chain
Developing top tier positions in Electric mobility value chain Committing over 1 B$ in the next 10 years Investing in battery manufacturing Positioning on EV charging segments 2020 JV with PSA in Europe 15,000 operated charging points end-2019 • Phased project with pilot in SAFT factory B2B/B2G: suc
Slide 48: Ambition for our global Scope 1+2+3
Ambition for our global Scope 1+2+3 Emissions reduction, Net Carbon Intensity of energy products sold to our customers a cross industry effort Base 100 in 2015 Realized Ambition vs. 2015 -6% -60% CO2 > -15% -35% or more 100 100 90 Airline companies 22 tCO2 * 80 70 60 Plane Airports manufacturer 22 t
Slide 49: Meeting our customers demand: growing sales while reducing emissions
Meeting our customers demand : growing sales while reducing emissions Energy sold to our customers Scope 3 emissions* PJ/y MtCO2e 12,000 15% Electrons 400 Biogas, H2 5% Emerging world 40% 50% Natural Gas 200 -30% Biofuels Europe 55% 35% Oil products 2019 2030 2015 2030 Commitment for Europe: -30% by
Slide 50: Resilience & Growth underpinning investment case
Resilience & Growth underpinning investment case
Slide 51: Be excellent on what we control
Be excellent on what we control Cash breakeven < 25 $/b in 2020 HSE Delivery Costs Cash 2020 Strategy and Outlook | 51
Slide 52: Capital investment: discipline and flexibility
Capital investment: discipline and flexibility Capital investment* B$ Renewables & Electricity 13-16 • Growing share with > 15% of < 14 Group Capex over 2021-25 < 12 • Confirming floor > 2 B$/y 2021 • Facing uncertainty • Preserving flexibility with > 30% not committed 2020 re vised 2021 2022-25 Bre
Slide 53: Cost reduction: accelerating and increasing efforts in all segments
Cost reduction: accelerating and increasing efforts in all segments Opex savings vs. 2019 base Exercising Leveraging contracts favorable flexibility market 2 B$ 1 B$ Optimizing Digital operations & logistics Feb. 2020 guidance Freezing recruitments Streamlining 2020 2023 Excl. new HQ staff energies
Slide 54: Upstream production: value over volume
Upstream production: value over volume LNG projects driving 2021+ profitable growth Production kboe/d ~2%/y Pre-FID Quotas* impact in 2020: Projects already 100 kboe/d 3 launched +40% LNG production growth over 2020-25 2 Base Low 3%/y decline thanks to ~50% of long plateau with no decline (LNG, Midd
Slide 55: Delivering cash flow growth
Delivering cash flow growth Debt adjusted cash flow (DACF) B$ ROE >10% @ 50$/b 60 $/b +5 B$ 50 $/b 25 at 50 $/b 40 $/b 51 $/b 40 $/b 10 2H19-1H20 2021** 2025* * Same European Refining margin than realized 2H19-1H20 (30 $/t) ** Brent 40 $/b – NBP 4.5 $/Mbtu - HH 2.5 $/Mbtu – European Refining margin
Slide 56: Clear priorities for cash flow allocation
Clear priorities for cash flow allocation 1 2 3 4 Capital Balance Share Dividend investment sheet buyback 13-16 B$ over 2022-25 Gearing < 20% Flexible at Supported higher oil prices at 40 $/b Renewables & Power Grade A credit rating when gearing < 20% > 2 B$ 2020 Strategy and Outlook | 56
Slide 57: Actively engaged in ESG
UN Global Actively engaged in ESG Compact LEAD Company Environment / Climate Social Governance New by-laws: Board Overcoming Covid-19 with Getting to Net Zero ambition overseeing Social and solidarity. No layoffs. Environmental stakes Lead Independent Director Transparency Safety as a value. directl
Slide 58: Transforming Total into a broad energy company
Transforming Total into a broad energy company Growing profitably while decreasing emissions Growing energy production from LNG and Renewables • Capitalizing on competitive advantages to thrive profitably in Renewables & Electricity • High-quality low-cost hydrocarbon assets and strong discipline on
Slide 59: Disclaimer
Disclaimer This document may contain forward-looking statements within the meaning of the Private Securities However, in certain instances, transactions such as restructuring costs or asset disposals, which are not Litigation Reform Act of 1995, notably with respect to the financial condition, resul
Slide 60: total.com
For more information, please visit total.com TOTAL SE Investor Relations 10 Upper Bank Street, Canary Wharf London E14 5BF United Kingdom Share capital: 6,632,810,062.50 euros 542 051 180 RCS Nanterre Reception: +33 (0)1 47 44 45 46 total.com Investor Relations: +44 (0)207 719 7962