Phillips 66 · NYSE:PSX
Phillips 66 — Shareholder Meeting (May 2021)
18 slides from Phillips 66's shareholder meeting presentation, May 12, 2021
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders GREG GARLAND Chairman & Chief Executive Officer May 12, 2021 San Francisco Refinery RODEO, CA
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Wo
Slide 3: Board of Directors
Board of Directors Greg C. Garland Gary K. Adams Julie L. Bushman Lisa A. Davis Charles M. Holley John E. Lowe Denise L. Ramos Glenn F. Tilton Marna C. Whittington 3 As of April 1, 2021.
Slide 4: Executing the Strategy
Executing the Strategy Operating Excellence Committed to safety, environmental stewardship, reliability and cost discipline Growth Enhancing our portfolio by capturing growth in Midstream, Chemicals and lower-carbon opportunities Returns Improving returns by maximizing earnings through investments i
Slide 5: 2020 Performance Highlights
2020 Performance Highlights Operating Excellence • Company best and industry leading safety and environmental performance • Advanced digital innovation across business segments Growth • Completed Gray Oak Pipeline and Sweeny Hub Phase 2 expansion • Announced Rodeo Renewed project and established Eme
Slide 6: Operating Excellence
Operating Excellence Total Recordable Rates Industry Safety Metrics Industry Average (Incidents per 200,000 hours worked) (Incidents per 200,000 hours worked) Phillips 66 CPChem DCP Midstream 1.03 0.11 .91 Agricul., Food All Construction Petchem. Prof. Petroleum Phillips 66 .83 Crop Manufact. Manufa
Slide 7: Incentives Align With Sustainable Value Creation
Incentives Align With Sustainable Value Creation Enhanced 2021 compensation design Annual Incentive Program Metrics Long-Term PSP1 Metrics to increase environment weighting 50% operational sustainability from 5% to 15%, adding two metrics: • Low-Carbon Priorities: advancing lower-carbon Environment
Slide 8: Sustainability Supports Long-Term Resilience
Sustainability Supports Long-Term Resilience Enhancing Our Business Model for a Lower-Carbon Future Operating Excellence Operating excellence Environmental is foundational to Stewardship sustainability (E) Reducing our environmental footprint Financial and advancing climate change solutions Performa
Slide 9: Emerging Energy
Emerging Energy Providing Energy and Improving Lives Establishing a lower-carbon business platform Commercializing and implementing emerging energy technology Leveraging commercial acumen and leadership in research and innovation Continuing capital discipline and emphasis on returns Organic solar ce
Slide 10: Renewable Fuels
Renewable Fuels Enhancing Our Business Model for a Lower-Carbon Future Rodeo capacity to produce 8 MBD; expected full refinery conversion to produce 50+ MBD by 1Q 2024 Humber co-processing capacity to produce 3 MBD from used cooking oil; planned 5 MBD by 2024 Ryze 11 MBD supply and offtake agreement
Slide 11: Innovation at Phillips 66
Innovation at Phillips 66 Agile. Efficient. Smart. Capitalizing on research and development capabilities through our Energy Research and Innovation group Advancing solid oxide fuel cells, organic photovoltaic polymers, next-gen batteries and renewable fuels Developing carbon mitigation, hydrogen and
Slide 12: High-Performing Organization
High-Performing Organization Culture. Capability. Performance. 100% of Board meetings include talent management discussion 45% of workforce are Millennial / Generation Z Vision 822,000 training hours for employees annually Providing Energy. Improving Lives. 98% retention of all employees 98% retenti
Slide 13: Making a Difference Where We Live and Work
Making a Difference Where We Live and Work 14,300 employees live our values every day 522,000 hours volunteered in local communities since 2012 $52 million in matching gifts and volunteer grants since 2012 2,543 organizations received donations through matching gifts in 2020 $225 million to organiza
Slide 14: Distributions
Distributions Annual Dividend Secure, competitive and growing dividend ($ per share) • 20% CAGR with nine increases1,2 3.50 3.60 3.10 Committed to shareholder distributions 1.89 2.18 2.45 2.73 1.33 • Returned $2 B in 2020 through dividends and 13 14 15 16 17 18 19 20 share repurchases • Repurchased
Slide 15: Total Shareholder Return
Total Shareholder Return Total Shareholder Return Since IPO Operating Excellence (%) 340% PSX +245% 300% S&P 100 +265% Growth 260% Peers +171% 220% 180% Returns 140% 100% Distributions 60% 20% -20% High-Performing Organization May-12 May-13 May-14 May-15 May-16 May-17 May-18 May-19 May-20 May-21 15
Slide 16: Ferndale
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Slide 17: Our Energy in Action
Our Energy in Action The 2021 Sustainability Report will be released mid-2021. The 2020 report can be found at phillips66.com/sustainability. The Company’s inaugural 2020 Human Capital Management Report was released in March 2021. The full report can be found at phillips66.com/hcmr. 17 The 2020 Year
Slide 18: Footnotes
Footnotes Date Conventions 20 is as of December 31, 2020, or the 12-month period ended December 31, 2020, as applicable, except as otherwise noted. Slide 6 Industry averages are from: Phillips 66 – American Fuel & Petrochemical Manufacturers (AFPM) refining data, Chevron Phillips Chemical Company LL