Totalenergies Se · EURONEXT:TTE
Totalenergies — Investor Day (September 2022)
46 slides from Totalenergies's investor day presentation, Sep 28, 2022
Slide 1: 2022 Strategy & Outlook
2022 Strategy & Outlook Growing shareholder returns while transitioning to a multi-energy company September 28, 2022 DOHA LNG Carrier
Slide 2: Table of contents
04 | Safety: core value 06 | 2021 economic recovery created market tensions, exacerbated in 2022 by war in Ukraine 21 | A global and integrated LNG top player 07 | Oil market tightened by low investment and crises 22 | Unique position to benefit from Europe’s new gas demand 08 | Europe: end of Russi
Slide 3: Executive Committee
Patrick Pouyanné Chairman and Chief Executive Officer President, Refining & Chemicals Helle Kristoffersen President, Strategy & Sustainability Chief Financial Officer President, Gas, Renewables & Power President, OneTech, People & Social Engagement President, Marketing & Services President, Explorat
Slide 4: Safety: core value
per million man-hours 1.5 Zero Continuously fatalities reducing the TRIR 1.0 0.73 Preventing Maintaining 0.5 2018 2019 2020 2021 the occurrence and promoting of major industrial the health of BP, Chevron, ExxonMobil, Shell accidents our employees 3 fatalities in 2022* * as of September 2022 Septembe
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Slide 6: Supportive macro: energy demand and oil price
energy demand growth Oil price % $/b 7% 5.9% 5% +6.1% after 2020 recession, created tension on 100 supply chains even before the war 3% +2.9% +3.2% driven by 1% 1% ? 50 on 2022 and 2023 -1% Central banks countering inflation with -3.1% -3% -4.9% -5% 2019 2020 2021 2022 2023 GDP: PPP annual growth (%
Slide 7: Oil market tightened by low investment
B$ Additions 0.75 & closures* - Mb/d 0.5 400 Investment 0.25 needed Additions 0 Closures -0.25 200 -0.5 Investment forecast -0.75 -1 -1.25 2015 2016 2017 2018 2019 2020 2021 2022e 2023e 2015 2016 2017 2018 2019 2020 2021 2022e 2023e Pandemic exacerbated low industry investment Pandemic accelerated c
Slide 8: A new ~100 Mt/y market for LNG
Mt Mt 600 Demand 200 Pre-FID Usable regas capacity Under construction Additional 400 100 LNG imports to fill Russian gap Existing supply LNG imports as anticipated before crisis 0 200 2021 2022 2023 2024 2025 2026 2027 2021 2022 2023 2024 2025 2026 2027 A new ~100 Mt/y market for LNG (25% of LNG wor
Slide 9: Power: the fastest growing energy market globally
GW B$ 1,500 5,000 Required annual RoW investment 4,000 1,000 USA 3,000 Growth 2015-20 Europe 2,000 500 1,000 China 33% 0 2021 2025 2030 2015 2020 Annual investment to 2030 Power: the fastest growing energy market globally (+5.6% in 2021) ~700 B$ annual investment in renewable power and electric netw
Slide 10: Growing shareholder returns while transitioning to a multi-energy company
— TotalEnergies Growing shareholder returns while transitioning toa multi-energy company C Russia excluded from outlook +)
Slide 11: Unique match between strategy and market trends
Oil LNG Electricity & Renewables 50% Upstream portfolio change since 2015: accretive acquisitions (Maersk in 2018, Brazil Acquisition of Engie LNG portfolio in 2018 35 GW by 2025 fully secured in 2021), divestment from high-cost/high- emission assets Future growth opportunities: Qatar, US, PNG, Port
Slide 12: Historic high cash generation and zero net debt
B$ $/b $/boe B$ 50 120 30 Gas surplus(2) 100 100 40 80 80 20 30 60 60 20 40 40 10 10 < 10% 20 20 0 0 2004 2008 2012 2016 2020 2021 2x1H22 2014 End-2022 End-2014 Mid-2022 End-2022 Excluding Russia 1. Before working capital variation Growing returns while transitioning 2. Gas surplus cash flow generat
Slide 13: Growing returns while transitioning
Growing returns while transitioning September 2022 - Strategy and Outlook | 13
Slide 14: Special reward to shareholders: exit Canadian oil sands
SpinCo to hold Surmont + Fort Hills, plus midstream and trading-related activities Listing on TSX TotalEnergies to retain minority shareholding temporarily to smooth Surmont & Fort Hills transition Asset with growth potential not fitting with TotalEnergies’ low- May 2023 carbon strategy 2022 CFFO >
Slide 15: A decade of growth and transformation
PJ/d (excluding Russia) PJ/d (excluding Russia) Oil New molecules Maintaining the engine of the transformation Aligning sales to demand & production Electricity 20 20 New molecules Gas Electricity Growing LNG production without Russia LNG Sustaining domestic production LNG Electricity & Renewables 1
Slide 16: Accelerating capital investment
New greenfield Invest in LNG to address growing & Exploration demand 33% Accelerate in energy transition businesses: > 4 B$ in 2022 Increasing carbon reduction program: 1 B$/y in energy efficiency, CCS, NBS, methane,… Piloting Capex level vs. price volatility within 14-18 B$/y range Growing returns
Slide 17: Countering inflation through discipline and efficiency
Keep strict investment criteria Maintain best in class position Strong focus on energy costs Switch from natural gas to LPG $/boe Profitability assessment natural gas reduction 15 vs. 1H21 in our European refineries** ExxonMobil environment carbon price 10 Chevron Energy saving special program Focus
Slide 18: Delivering cash flow growth supporting dividend growth
B$ 30 at 60 $/b and 10 $/Mbtu 25 2022 CFFO sensitivity +3.2 B$/y at 50 $/b and 8 $/Mbtu for +10 $/b Brent 20 +0.5 B$/y** for +2 $/MBtu NBP/TTF 15 2021 2027 including without Russia Russia * CFFO excluding working capital variation, restated to 50 $/b Brent, 8 $/Mbtu TTF/NBP, 3 $/Mbtu HH Growing retu
Slide 19: Progress toward Net Zero and emissions reduction
2015 2021* 2025 2030 Mt CO2e 46 37 < 40 Mt Scope 1+2 net emissions > -40% vs 2015 -20% Under review on operated kt CH4 94 49 Methane emissions -50% -80% activities vs 2020 -23% Routine flaring Mm3/d 2.3(1) 0.7 < 0.1 0 100 Scope 3 intensity in 2015 - -8% > -10% > -20% for indirect Mt CO2e 350 285 Sco
Slide 20: TotalEnergies
TotalEnergies
Slide 21: A global and integrated LNG top player
Yamal LNG Snøhvit LNG #1 Freeport LNG Cove Point LNG US LNG exporter > 10 Mt Arzew Skikda ECA LNG (1) Cameron LNG + T4 ELNG Sohar LNG Vista Pacifico Sabine Pass LNG Qatar Qalhat LNG & Oman LNG Corpus Christi Adnoc LNG Yemen LNG (2) Equity production Angola LNG Nigeria LNG + T7 (1) Mozambique Papua L
Slide 22: Unique position to benefit from Europe's new gas demand
#2 producer in the North Sea #1 LNG regas capacity (15% market share) kboe/d Mt/y Netherlands 200 Denmark 20 2 FSRU projects Norway Existing 100 10 capacity UK 2021 2022 2023 2026 2021 2022 2023 2026 Short-cycle increasing 2022 production From 50% (2021) to >90% utilization (2022) Brownfield develop
Slide 23: New opportunities fueling LNG growth without Russia
Mt/y 25 20 Qatar NFE North Field East & North Field South Cameron Ph. 2, ECA ECA 15 NLNG T7 10 5 Russia Papua LNG Giant Area-1 resources Papua LNG 2021 2027 2030 including without without Russia Russia Russia Gas September 2022 - Strategy and Outlook | 23
Slide 24: Profitably expanding in Qatar
Mt/y, TotalEnergies share North 4 Field Longstanding partner of Qatar South Leveraging European regas capacity North Field Total Capex of 3.5 B$ 2 East (estimate TotalEnergies share) ~1.3 Bboe (TotalEnergies share over 27 years) Qatargas 2 Train 5 2022 2024 2026 2028 2030 Gas September 2022 - Strate
Slide 25: Growing integrated LNG portfolio and cash flow
Mt/y B$ 4 40 Russia at 50 $/b Spot Russia Other LT supply 2 20 Equity production 2021 2027 2021 2027 including without including without Russia Russia Russia Russia * CFFO excluding working capital variation, restated to 50 $/b Brent, 8 $/Mbtu TTF/NBP, 9 $/Mbtu JKM Gas September 2022 - Strategy and
Slide 26: Oil: Leveraging high-graded portfolio
Slide 27: Leveraging our oil portfolio
kboe/d (TotalEnergies share) 200 Sépia Atapu Iara Maersk Oil, 5 years on Growing in Brazil 100 Mero Lapa (op.) 5 B$ equity + 2.5 B$ debt Successful bid in a 60 $/b environment (Dec ‘21) 2021 2022 2023 2024 2025 2026 High quality oil assets: Contributing 2022 CFFO >700 M$ • North Sea (Johan Sverdrup)
Slide 28: Short-cycle investment capturing high prices
kboe/d (100%) Infills & tie-backs 400 Angola Block 17* Short-cycle projects 200 Block 17 CFFO 2020 2021 2022 2023 2024 2025 2026 • 2022: > 2 B$ at 90 $/b • 2023-26: ~1.5 B$/y at 80 $/b, > 1 B$/y at 50 $/b M$ (TotalEnergies share) 3 FIDs in 2022: CLOV Phases 2 & 3, Begonia Controlling costs through r
Slide 29: Developing new oil projects
Uganda-Tanzania Cameia-Golfinho Exploration discoveries Tilenga (upstream) + EACOP (pipeline) Blocks 20 & 21 (80% op.) • Drilling start end-2022 70 kboe/d FPSO Venus (Namibia) • Biodiversity program in action • Giant oil and gas discovery • Appraisal and testing beginning 2023 Block 58 (Suriname) Ap
Slide 30: Growing cash flow to 2027
Mboe/d B$ 1.5 Russia at 50 $/b Russia 10 1 5 0.5 0 2021 2027 2021 2027 including without including without Russia Russia Russia Russia Oil * CFFO excluding working capital variation, restated to 50 $/b Brent, 8 $/Mbtu TTF/NBP and 3 $/Mbtu HH September 2022 - Strategy and Outlook | 30 Al-Shaheen, Qat
Slide 31: Refining & Chemicals: delivery and transformation
Reinforce competitiveness Grow in Petrochemicals Invest in low-carbon products From 64% to > 80%, capturing margin-high Startup in 2022, 1 Mt/y ethylene capacity, Priority to SAF, targeting 10% market environment full monomer / polymer integration share by 2030 (1.5 Mt/y) Priority to waste & residue
Slide 32: Marketing & Services: growing value while transitioning
Transition retail Support our customers’ energy transition Develop top tier positions in e-mobility Targeting 150,000 EV charging points > 50% of retail CFFO in Europe by 2026 • No more fuel oil sold to power generation from 2025 > 800 HPC sites on main corridors ~1,000 stations converted into multi
Slide 33: New molecules for energy transition
Ambition: become a leader Targeting 1 Mt/y of high value Targeting 20 TWh/y Ambition: pioneer in mass in renewable diesel and SAF circular polymers in 2030 biomethane production in 2030 production of clean hydrogen SAF market share in 2030 Mechanical recycling Strong demand for bio-LNG Partnership w
Slide 34: Deploying CCS strategy
Incorporating CCS in our assets Offering Carbon Transport & Storage services Avoid emissions in greenfield projects Build a profitable, scalable business • North Field East & South (Qatar) and reduce Scope 3 emissions by offering CCS solutions to our customers • Papua LNG North Sea core area Reduce
Slide 35: Electricity & Renewables: Creating value from integration
Aan. Electricity & Renewables Creating value from integration
Slide 36: Creating value from integration in electricity
Producing Maximizing value through Developing at low cost storage and trading customer portfolio Investing in cost-competitive projects Targeting ~30% merchant Addressing customer green electricity worldwide with > 10% ROE needs with Corporate PPAs production in deregulated markets Expanding distrib
Slide 37: Renewables: highly valuable portfolio built through selective transactions
India 20% in 2021 2 B$ paid in 2021 worth USA 1.6 B$ cash payment while leveraging partial sale of Sunpower 50% in 2022 net valuation for the 2 listed entities Worldwide Option to acquire 100% Exercising call option at in 2023 Worldwide Organic platform after financing and farm-down Electricity & Re
Slide 38: Secured portfolio of 35 GW by 2025
GW GW 40 40 Storage RoW Non- operated Solar India 20 20 Europe Operated Offshore wind USA Onshore wind 2022 In construction In late 2025 By technology By geography development Electricity & Renewables September 2022 - Strategy and Outlook | 38 Champagne Conlinoise wind farm, France
Slide 39: Growing profitable Electricity & Renewables business
Company share, TWh Company proportional share, B$ 80 5 In 2027: 60 CFFO Renewables (> +1.5 B$ vs 2021) 40 ROE for Renewables 20 Flexible generation 2021 2022 2025 2027 2021 2022 2025 2027 Electricity & Renewables September 2022 - Strategy and Outlook | 39
Slide 40: Investing in TotalEnergies
Investing in TotalEnergies
Slide 41: Compelling investment case
Low cost, low emission oil & gas portfolio Increasing attractive and sustainable capturing upside from high energy prices return to shareholders Lowest cost producer - breakeven < 25 $/boe 35%-40% payout through the cycles #2 player in LNG – global LNG portfolio leveraged Cash flow growth will suppo
Slide 42: Appendix
Appendix
Slide 43: Shareholders
% Treasury shares 1.5% 5% 14% Company employees 7% 42% 19% Institutional 78% shareholders % Individual shareholders 13% 20% Shareholders Data as of 30 June 2022 September 2022 - Strategy and Outlook | 43
Slide 44: ESG ratings
MSCI ESG Sustainalytics ISS ESG S&P Global CDP CDP Refinitiv rating ESG Risk rating Corporate rating ESG Climate Change Water AAA Negligible risk A+ 100 100 A A 86 AA 83 81 79 A- A- A- Medium risk 25 70 B A A Medium risk 30 Average B- Prime B- B- Utilities2 49 C+ High risk 33 Average peers D O&G1 CC
Slide 45: Adjustment items and definitions
These adjustment items include: 1. Special items Due to their unusual nature or particular significance, certain transactions qualified as “special items” are excluded from the business segment figures. In general, special items relate to transactions that are significant, infrequent or unusual. How
Slide 46: For more information go to
Corporate Communications TotalEnergies SE 2, place Jean-Millier 92400 Courbevoie, France Tel.: +33 (0)1 47 44 45 46 Share capital: €6,547,828,212.50 Registered in Nanterre: RCS 542 051 180 For more information go to