Imperial Oil Limited · TSX:IMO
Imperial Oil — Investor Day (April 2023)
76 slides from Imperial Oil's investor day presentation, Apr 19, 2023
Slide 1: Imperial Investor Day, April 19, 2023
ess Imperial Investor Day April 19, 2023
Slide 2: Emergency evacuation route
Emergency evacuation route 16th Floor (By Emergency Exit Stairwell B Fire Alarm ¢ Fire Extinguisher B: Fire/Security Phone Q Women’s Restroom fg) Men’s Restroom First Aid Box “2| AED Located on the 27th Fir Fireman’s/Service Elevator “ar psa tein sobs pes tl Ur FecPiesel atte sees of oe camtitercons
Slide 3: Agenda
.- Agenda Topic Speaker Opening remarks Sustainable solutions Upstream outlook Break Downstream & Chemical outlook Financial outlook Closing remarks Q&A Brad Corson Chairman, president and chief executive officer Sherri Evers Vice-president, commercial and corporate development Simon Younger Senior
Slide 4: Opening remarks
Opening remarks Brad Corson Chairman, president and chief executive officer \ imperial | 2023
Slide 5: Strong operations underpinned record financial results in 22
Strong operations underpinned record financial results in 2022 Priority on safe and reliable operations, cost efficiencies, and capital discipline Strategy remains focused on Maximizing value from existing assets Progressing value-accretive growth opportunities Imperial | 2023 [J
Slide 6: Record shareholder returns in 2022
Record shareholder returns in 2022 Efficiently returning cash * 28 consecutive year of growth = 63% year-on-year growth $0.9B Dividends $/share = 45% share price appreciation $6.4B Share buybacks , * ~14% shares repurchased ~ = 5% NCIB, 2 SIB’s for $4B 48% Total shareholder
Slide 7: 2022 operational achievements
Best-ever lost time Best-ever second half Five consecutive quarters Highest annual production incident rate production at Kear! above 140 KBD at Cold Lake in Syncrude’s history DQ of ey Record refinery Record distillate Caripletioner Sanctioned 20KBD utilization production Samia Products Pipeline St
Slide 8: Opportunities in the energy transition
Opportunities in the energy transition Meeting Canada’s energy needs in a lower carbon future Imperial’s goal for reducing greenhouse % *: gas intensity of operated oil sands 0; faciities by 2030 compared with 2016 Approved project to construct Announced company-wide goal largest renewable diesel fa
Slide 9: Current business environment
Current business environment Supply challenges, demand growth, energy transition impacting global energy mix Global oil supply Capital constraints, energy transition driving underinvestment, challenging new supply Geopolitics play larger role as spare capacity shrinks Global oil demand Demand return
Slide 10: What you will hear today
What you will hear today i Well-positioned for the future siliency Investment in Delivering superior Engaged through the technology and shareholder in energy cle innovation value transition The value of integration Technology solutions for Optimizing Expanded GHGi Relentless focus on costs meeting s
Slide 11: Sustainable solutions
Sustainable solutions Sherri Evers Vice-president, commercial and corporate development \ Imperial | 2023 i] i
Slide 12: Canada — focused on sustainability
Canada — focused on sustainability Strong track record from a secure and reliable energy supplier Pragmatic policies with fiscal support (@) Net zero ambition Expertise in carbon management Advanced regulatory systems @) (2) Unprecedented industry collaboration (®) Collaboration with Indigenous Peop
Slide 13: Our climate strategy
Our climate strategy Leveraging our expertise, integration and technologies Transformational technology solutions S Continuing TCFD disclosure with third-party verified GHGs Imperial | 2023
Slide 14: Imperial climate goals
Imperial climate goals Recently announced company-wide net zero by 2050 goal ¢ 107 @ On track tO — Goal to reduce operated oil sands Company-wide goal to meet emissions GHG emissions achieve net intensity 10% intensity b zero emissions reduction goal 30% by eel wn Heopersted for operated oll sands S
Slide 15: Imperial net zero by 2050
Imperial net zero by 2050 Robust planning and emission reduction roadmaps identified Supportive policy environment Technological advancements Investment in innovation Indigenous partnerships Low Cl production ccs Lower Cl fuels Future advancements Company-wide goal to achieve net zero emissions by 2
Slide 16: Leveraging our strengths
Leveraging our strengths Evaluating low carbon solutions businesses that capitalize on core capabilities ( } Hydro Large e@ Oil refining and sales Market Size? (2050) Nuclear ® Qwirg Ox sor@ LOW CARBON SOLUTIONS Low Imperial capabilities fit" High + Assessed on 3-point scale across asset, capabiliti
Slide 17: Advancing carbon solutions
Advancing carbon solutions Innovating for a lower-carbon future Ongoin Kost Boles Heoere: Flue Gas Haul Trucks ~) Pathways Supporting Renewable Power ‘Co-processing EBRT & CSP. Sustainable Advanced Aviation Fuel Recycling Bitumen Fuel Cells Direct Air Carbon Fibre Capture ‘SMRs! "Small modular react
Slide 18: Transformational collaboration
Transformational collaboration Enabling sustainable solutions in support of lower-carbon future = RD product trial at Kearl Progressing pilot project at historic Leduc field oe) Engaged in cross-industry development discussions for SAF eo {) EV charging service option for Esso and Mobil branded reta
Slide 19: Pathways to Net Zero Alliance
Pathways to Net Zero Alliance Unprecedented collaboration, resources and progress Pathways Alliance key milestones achieved October 2021 October 2022 Q1 2023 Pathways interim Pore space Commercial negotiation alignment funding agreement evaluation awarded Drilled 2 evaluation wells | | | June 2021 A
Slide 20: Pathways phase
Pathways phase 1 Effective fiscal policies and regulatory framework required for continued phase 1 progress Pathways foundational project schedule with effective fiscal policies and regulatory framework in place 2024 2027 First hub injection (Imperial & others) Capital commitment to prosraeipa | | |
Slide 21: Continued momentum
Continued momentum Sustainable solutions in support of lower carbon future Canada remains positioned to lead as a sustainable, secure and reliable global energy supplier Imperial on track to meet 2023 climate goal Plans identified to achieve 2030 goals and net zero emissions by 2050, requiring: Supp
Slide 22: Upstream outlook
Upstream outlook Simon Younger Senior vice-president, upst
Slide 23: Upstream strategy
Upstream strategy Best-in-class producer, maximizing cash flow, positioning for a lower carbon future Maximize value from long-life, low-decline assets Targeting industry-leading unit cash cost and reliability Select, disciplined capital investments Lowering emissions through profitable investments
Slide 24: 2022 Upstream performance
2022 Upstream performance Continued strong operational performance and foundation for future success Kearl Recovered from extreme cold weather, record performance in 2H Continued Autonomous Haul ramp-up, converting entire mine to autonomous operating zone (65 trucks converted by year end) Second Boi
Slide 25: Kearl winterization strategy
Kearl winterization strategy Maintaining reliability through extreme winter conditions Comprehensive response to 2022 extreme cold weather Analysis and learnings used to enhance winter operating procedures Early maintenance to ensure reliability and availability of resources during winter months Str
Slide 26: Long-life, low-decline asset base
Long-life, low-decline asset base High-quality stable production base; focused on GHG-advantaged growth Production koebd 500 400 300 200 100 ° 2017 2019 2021 2023 2025 2027 BB Kear! BB Syrcrude [i Unconventional I Cold Lake BE Other Production Imperial share, befor 2 reserves Imperial share, befor i
Slide 27: Upstream cash flow outlook
Upstream cash flow outlook Delivering value and strengthening cash flow from operating activities Average annual cash from operating activities $B ° Strong cash flow in 2022 5 Outlook for robust cash flows across a range of price cases i Pipeline of highly accretive investments B Focused on industry
Slide 28: Upstream investment outlook
Upstream investment outlook Investing for value through select volume growth and GHG intensity reduction Average annual capital expenditures’ Sustaining capital moderates from 2022 $B 5-year average of ~$5 per barrel 15 Key sustaining projects include: Kearl In-pit Tailings Cold Lake Infill Drilling
Slide 29: Industry-leading digital initiatives
Industry-leading digital initiatives Accelerating value with a continually expanding digital portfolio Digital investment principles: « Capital-efficient « Fast payback » Agile development >$1.1B Near-term focus and wins > 40 successful initiatives . 7 . Optimizing production and GHGi Smart sensor i
Slide 30: Digital technology enabling value
ue Digital technology enabling va | J Unlocking our full potential Field on Aras on =e || Se enhanced softwere to rtm any Sade | and Al to sensors, ppbinize ' make enabling production: better production = a uptime decisions optimization Full sites laser scanned, connected data at our fingertips Sche
Slide 31: Kearl performance
Kearl performance Building on a decade of improvement Production and unit cash costs" kbd $US/bbl 200 Extreme cold weather Recovered from extreme cold weather in 30 1H ‘22 with strong performance in 2H a Highest single day production 360 kbd on Dec. 29 20 Best-ever 2H production, 278 kbd 263 100 211
Slide 32: Kearl journey
Kearl journey Optimization phase continuing kbd 300 = Extreme cold — Le On track to deliver 280 kbd in 2024 weather = oF Reliability and maintenance improvements Improved recovery through digital and crusher enhancements Evaluating opportunities to increase to 300 kbd in future 200 2022 Reliability
Slide 33: Autonomous haul update
Autonomous haul update First fully autonomous oil sands mining operator May 2022 converted full mine pit to autonomous operating zone Step change safety improvement Continuously raising the bar on daily mine material movement records 65 haul trucks converted to date, with remaining trucks expected t
Slide 34: Cold Lake performance
Cold Lake performance Performance exceeding expectations and sustainable into the future Production performance kbd 150 100 kbd 150 too 4 2021 2018-2020 Decline Mahihkan Drilling 2021-2023 Optimization 2022 2024-2027 Highest annual production since 2018 Strong performance from new Mahihkan infills (
Slide 35: Transition to lower emission profile
Transition to lower emission profile kod mBase MLASER mGRP1 mLemingSAGD mFutureSA-SAGD mCSP 50 0 2020 2023 2026 2030 Next generation technology GHGi" SS LASER SAGD SA-SAGD EBRT ‘LASER, SA-SAGD, EBRT and CSP are Imperial patented technologies 2Non-GAAP financial ratio - see supplementalinformation fo
Slide 36: Key Cold Lake volume sustainment investments
Key Cold Lake volume sustainment investments Progressing capital-efficient, economically attractive projects to sustain strong production Grand Rapids Phase 1 Leming SAGD Future SA-SAGD 15 kbd advantaged production 9 kbd advantaged production at peak 50 kbd advantaged production by 2030 40% GHGi red
Slide 37: Cold Lake carbon capture and storage (CCS)
Cold Lake carbon capture and storage (CCS) Efficient emissions reduction, supporting Cold Lake strategy transformation Pursuing CCS emissions reduction opportunity that captures efficiencies with Cold Lake operations Geographically and geologically advantaged to be an early mover in CCS Feasibility
Slide 38: Syncrude update
Syncrude update Building momentum following operator transition Production kbd 80 60 40 20 0 Capturing value through owner-operator model $300M in efficiencies achieved to date, evaluating further synergies Increased asset utilization through improved reliability and interconnect pipeline Best-ever
Slide 39: Future resource optionality
Future resource optionality Portfolio of growth opportunities with net zero potential EBRT Overview Large inventory of in situ opportunities Aspen, Corner, Clarke Creek, Clyden Strategic approach to future development Maintain optionality while evaluating next generation in situ technologies Promisi
Slide 40: Upstream summary
Upstream summary Best-in-class producer, maximizing value, positioning for a lower carbon future Maximizing value from existing assets Robust cash flow across a range of price outlooks, resilient at low prices Investing for value through select volume growth and GHG intensity reduction Industry-lead
Slide 41: Break
ess Imperial Break
Slide 42: Downstream and Chemical outlook
Downstream and Chemical outlook Jon Wetmore Vi
Slide 43: Downstream and Chemical strategy
Downstream and Chemical strategy Increasing profitability across the value chain Deliver industry-leading performance in safety, reliability and operations integrity Strategically invest in logistics to expand market reach, reduce costs and improve supply reliability Enhance world-class Esso and Mob
Slide 44: Structurally advantaged Canadian margin environment
Structurally advantaged Canadian margin environment —— Robust margins throughout the commodity cycle Average gasoline crack $US/bb! 80 60 Advantaged logistics 40 0 2022 Avg 2012-2021 Avg mUS Gasoline Crack — m CDN Gasoline Crack Proximity to crude Average diesel crack $US/bbl 80 60 40 Import parity
Slide 45: Canadian fuel demand update
Canadian fuel demand update Robust liquid fuel demand for decades © Significant gasoline demand through 2035 Advantaged refining, logistics and branding allows for growth in gasoline market share through 2035 Continued advantage in coast-to-coast ethanol distribution Strong EV growth expected FLO pa
Slide 46: Canadian refining
Canadian refining Canada’s largest refiner with access to global technology Structurally advantaged refining business Largest domestic refiner, strategically located assets Fully integrated Chemical plant for optimized molecule uplift Low overall cost structure Access to ExxonMobil expertise Sustain
Slide 47: Fuel, lubricant and asphalt marketing
Fuel, lubricant and asphalt marketing Industry-leading brands and product offering creates customer pull Retail branded wholesale model provides structural advantages Industry-leading site count with ~2,400 sites across Canada Targeting capital efficient market share growth Strategic partnerships wi
Slide 48: Strathcona renewable diesel project
Strathcona renewable diesel project Building Canada’s largest renewable diesel (RD) facility Scope 20 kbd renewable diesel production at Imperial Strathcona Refinery ~3 MT annual CO2 reduction in transportation sector compared to conventional fuels! Status Final Investment Decision approved $720M pr
Slide 49: Strathcona renewable diesel project
Strathcona renewable diesel project Advantaged project is value accretive Increasing demand for renewable diesel in Canada Layered Canadian and British Columbia regulations! create demand for lower carbon intensity (Cl) transportation Fuels el distribution Growing demand for renewable diesel as drop
Slide 50: Innovation delivers shareholder value
Innovation delivers shareholder value Further enhancing Imperial’s advantage with innovative solutions and technologies Advanced recycling Transforming plastic waste into valuable products at scale Evaluating potential opportunity at Sarnia site Leveraging ExxonMobil technology and expertise Targeti
Slide 51: Downstream investments
Downstream investments Strategic investments in low-capital, high-return business Average annual capital expenditures" $M 600 Increase in growth spend due to Strathcona RD project 400 = Continuing selective investing in refinery slate, production efficiency and resiliency te) 2022 2023 2024-2027 Sup
Slide 52: Downstream profitability
Downstream profitability Resilient business model, focused on increasing profitability Annual net income $B 4 Resilient, reliable performance across the cycle Expanding geographic reach enabling record refinery utilization and profitability in 2022 Fully integrated, flexible business model Focusing
Slide 53: Advantaged chemicals business
Advantaged chemicals business Positioned for income generation throughout the commodity cycle Annual net income sm Integration = with refinery and upstream 300 Proximity ant to feeds and market 100 Premium Products to meet specific customer needs C) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 54: Chemicals - integration and proximity
Chemicals - integration and proximity Advantaged integration, located near customers and feedstock Fully integrated, flexible business model Integration provides leading cost structure and profitability advantages Heavy integration with Sarnia and Nanticoke refineries yey Supplier of specialty solve
Slide 55: Chemicals - premium products
Chemicals - premium products Meeting customer needs with consistent, high-quality, differentiated products Produce high-density polyethylene (HDPE) for rotational and injection molding applications End product uses are mostly durables, not single-use plastics Brands Advanced recycling opportunity In
Slide 56: Imperial's Downstream and Chemical advantage
Imperial’s Downstream and Chemical advantage —— Sustainably advantaged assets, brands and products Canadian domestic fuel markets benefit from advantaged margins Strategically located, highly-integrated assets with low sustaining capital requirements Portfolio of superior brands and products fosteri
Slide 57: Financial outlook
Financial outlook Dan Lyons Chief financial officer
Slide 58: Financial profile
Financial profile Resilient business model with upside leverage ‘TOSysar cassie freer operating ectivities Integrated, advantaged business model Upstream: low-cost growth, long-life low decline assets Downstream: advantaged margins and logistics pakiencart Chemicals: integration, proximity, premiums
Slide 59: 2022 results summary
2022 results summary Achieved record performance while strengthening core businesses Annual cash flows from operating activities $B 12 4 all =) 2017 2018 2019 2020 2021 2022 Strongest year in company history Highest ever Downstream utilization Highest ever second half Kear! production Record earning
Slide 60: Cash operating costs
Cash operating costs Energy prices drove increased operating costs Annual cash operating costs" $B 9 | Key drivers of increased operating costs 50% increase in energy cost with rising commodity prices 5% average inflationary pressure on non-energy costs Laser-focused on lowering unit cash operating
Slide 61: Capital expenditure forecast
Capital expenditure forecast Low sustaining capital, attractive growth investments Annual capital expenditure’ forecast $B 2 2023 target of $1.7B, up $0.2B from prior outlook Strathcona renewable diesel accretive logistics scope Cold Lake Grand Rapids phase 1 acceleration Sustaining capital? average
Slide 62: Capital allocation priorities
Capital allocation priorities Committed to returning surplus cash to shareholders Dividend per share (paid basis) and shares outstanding $ Millions of shares 2.00 1,000 1.00 0.00 : i | | 2017-2018 = 2019-2020 750 a 500 2021 © 2022-2023 mmm Dividend paid +9——=Shares outstanding Shareholder payout, 5
Slide 63: Free cash flow
Free cash flow Financial discipline and capital efficient volume growth support free cash flow outlook Annual cash distributions Free cash flow’? profile $B $B 8 8 6 6 4 4 | | i o EH = L 0 2016-20 Avg 2021 2022 $60 $70 $80 $90 $100 mDividend mBuyback gus WTl | Non-GAAP financial measure ~ see supple
Slide 64: Corporate guidance
Corporate guidance 2023 Annual Guidance" 2023 Turnaround Schedule Total Capex $B Upstream Production kboed Kearl kbd (gross) Cold Lake kbd Syncrude kbd Refinery throughput kbd Refinery utilization % ' Production is Imperial share, before royalties except Kearl which is 100% gross basis 17 410 - 430
Slide 65: Closing remarks
Closing remarks Brad Corson Chairman, president & chief executive \ | Imperial | 2023 a
Slide 66: A disciplined strategy
A disciplined strategy Maximizing shareholder value Continue to focus on existing asset base Optimization and debottlenecking, getting the most out of our existing assets Value accretive opportunistic growth Disciplined financial management Target industry-leading cost structure Remain robust throug
Slide 67: Why Imperial
Why Imperial L I Confidence in the future High quality, long life, low decline upstream assets Continued growth through focus on optimization, debottlenecking Advantaged downstream assets Integrated across value chain Low cost, high return growth Progressing value accretive projects, maintaining opt
Slide 68: ess
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Slide 69: For more information
ess Imperial For more information: Dave Hughes Vice-president, investor relations +1 587.476.4743 dave.a.hughes@exxonmobil.com imperialoil.ca twitter.com/ImperialOil linkedin.com/company/|mperial-Oil youtube.com/ImperialOil 0000 facebook.com/ImperialOilLimited
Slide 70: Cautionary statement
.- Cautionary statement Forward statements: Statements of future events or conditions in this report, including projections, goals, expectations, estimates, business plans and descriptions of strategic and emission reduction goals are forward-looking statements, Similarly, emission-reduction pathway
Slide 71: Cautionary statement
.- Cautionary statement “These factors include global, regional or local changes in supply and demand for oil, natural gas, petroleum and petrochemical products, feedstocks and other market factors, economic conditions or seasonal fluctuations and resulting demand, price, differential and margin imp
Slide 72: Cautionary statement
.- Cautionary statement In these materials, certain natural gas volumes have been converted to barrels of oil equivalent (BOE) on the basis of six thousand cubic feet (Mci) to one barrel (bbl). BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcfto one bbl is bas
Slide 73: Supplemental information
.- Supplemental information Debt-to-capital ratio Debt, defined as the sum of “Notes and loans payable” and “Long-term debt”, divided by capital, defined as the sum of debt and "Total shareholders! equity’ Capital and exploration expenditures Capital and exploration expenditures (or capital expendit
Slide 74: Supplemental information
.- Supplemental information Cash operating costs (Cash costs) Cash operating costs is a non-GAAP financial measure that consists of total expenses, less Purchases of crude oil and products, Federal excise taxes and fuel charge, Financing and costs that are non-cash in nature, including Depreciation
Slide 75: Supplemental information
.- Supplemental information Unit cash operating costs (Unit cash costs) Unit cash operating costs is 2 non-GAAP ratio. Unit cash operating costs (unit cash costs) is calculated by dividing cash operating costs by total gross oil-equivalent production, and is calculated for the Upstream segment, as w
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