Totalenergies Se · EURONEXT:TTE
Totalenergies — FY2020 Earnings Presentation
55 slides from Totalenergies's earnings presentation, February 2021
Slide 1: Results and Outlook
Results and Outlook February 2021
Slide 2: TotalEnergies: More energy, Less emissions
TotalEnergies : More energy, Less emissions
Slide 3: Safety, Total's core value
Safety, Total’s core value Cornerstone of operational efficiency & sustainability Protecting our employees and partners Total Recordable Injury Rate for Total and peers* Per million man-hours 65 M masks delivered to 110 countries 1.5 7 M gloves delivered to 50 countries 1. 05 1.0 Hydroalcoholic gel
Slide 4: Transforming Total into a broad energy company: TotalEnergies
Transforming Total into a broad energy company : TotalEnergies Gases • Grow LNG (#2 player) and develop renewable gas (biogas / clean H 2) • Promote natural gas for power and mobility Renewables & Electricity • Accelerate investments in low carbon electricity primarily from renewables • Integrate al
Slide 5: Growing energy production: LNG and Electricity driving Profitable Growth
Growing energy production Mboe/d PJ/d 4 ~120 Electrons TWh Renewable gas 20 3 Gas 2 10 Renewable fuels 1 Oil 2019 2030 LNG and Electricity driving Profitable Growth 2020 Results and Outlook | 5
Slide 6: Growing sales while adapting to demand
Growing sales while adapting to demand Energy sold to our customers PJ 12,000 % in sales Electrons 15% Renewable gas 5% 50% 40% Natural Gas Renewable fuels 55% 35% Oil products 2019 2030 2020 Results and Outlook | 6
Slide 7: Reducing emissions while growing
Reducing emissions while growing Commitments to reduce Scope 3 emissions of our customers, in absolute value Scope 3 emissions* MtCO2e 400 Other regions Europe Covid 200 impact -30% Europe 2015 2020 2030 Europe: -30% by 2030 on the way to Net Zero by 2050 Worldwide: 2030 lower than 2015 * From energ
Slide 8: New commitment on Scope 1 & 2: -40% 2030 vs 2015 while growing
New commitment on Scope 1 & 2: - 40% 2030 vs 2015 while growing Scope 1 & 2 emissions from operated oil and gas facilities MtCO2e 46 Net* emissions 36 -40% < 40 vs 2015 40 Covid impact Acquisitions 3 & start-ups 25-30 since 2015 0 2015 2020 2025 2030 2050 On the way to Net Zero across Total’s worldw
Slide 9: Getting to Net Zero
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) 2020* 3 major steps to get Total to Net Zero vs 2015 Net Zero on Operations by 2050 or sooner 1 -15% (Scope 1+2) 2 Net Zero in Europe by 2050 or sooner -12% (Scope 1+2
Slide 10: Sustainability at the heart of Total's transformation
Sustainability at the heart of Total’s transformation CDP A- Best score ex aequo in O&G sector ENVIRONMENT SOCIAL GOVERNANCE MSCI A Best score ex aequo in O&G sector ISS ESG B- Only major with Prime status Climate ambition to Responsible employer: Environmental and since 2006 Net Zero no lay-offs de
Slide 11: Embedding climate ambition into financing policy
Embedding climate ambition into financing policy Sustainability Linked Bonds: the “new normal” at TotalEnergies • All new bond issues to be Climate KPI-linked • Favoring long maturities • Measurable KPIs Scope 1+2 oil & gas operated emissions Scope 3 absolute emissions and/or carbon intensity object
Slide 12: Market environment
Market environment a ee Owe www ee ee ~: meee «£2 ee Ae ee 268 i sus wesley . Yr
Slide 13: 2020 Energy demand reveals contrasted dynamics by energy
2020 Energy demand reveals contrasted dynamics by energy World GDP and demand evolution 2020 vs. 2019 (%) ~-4% ~-5% ~-9% ~+3% ~+13% World GDP Energy Oil LNG Electricity from Wind + Solar LNG and Renewables: key contributors to the energy transition Sources: IMF, WEO 2020 (IEA), Rystad Energy, BNEF a
Slide 14: Oil: risk of medium-term supply crunch
Oil: risk of medium-term supply crunch Oil supply-demand outlook to 2025 Mb/d > 10 Mb/d unidentified 2020 highlights OPEC+ quotas 100 • Effectiveness of OPEC+ in managing unpredictable ? 2020 Demand short-term oil demand Post-FID Shale supply ~5%/y Conventional net growth • Uncertainty on US shale C
Slide 15: Gas: growing LNG demand despite economic downturn
Gas: growing LNG demand despite economic downturn LNG demand 2020 highlights Mt +3% Demand +12% • LNG demand (+3%) outpacing gas (-2%) 350 in Covid crisis • Demand elasticity • Asian energy policies favoring LNG Supply • Only 2 LNG project FIDs 200 (NLNG T7, ECA) 2018 2019 2020 China +12% +11% • LNG
Slide 16: 2020: Resilient in the storm
[ 2020: Resilient in the storm
Slide 17: Investing for growth – maintaining dividend – controlling gearing
Investing for growth – maintaining dividend – controlling gearing 2020 cash flow allocation Net-debt-to-capital B$ %, Total vs. peers*, excluding leases 10 20 30 Working capital Debt 5.6 Capital 13.0 investment CFFO 15.7 Return to 7.2 shareholder Sources Uses Discipline in cash flow allocation * Est
Slide 18: Delivered action plan to weather the storm
Delivered action plan to weather the storm May 2020 Action plan Realized Reduce < 14 B$ 13 B$ Capital investment vs 18 B$ Capital Ability to flex Capex investments Maintain 2 B$ 2 B$ Renewables & Electricity Opex 1 B$ Cost savings vs. 2019 1.1 B$ Cost culture Savings vs 0.3 B$ Low-breakeven high-qua
Slide 19: Discipline on costs
Discipline on costs While preserving workforce competencies Opex savings vs. 2019 Production costs* B$ $/boe 1.6 B$ +0.5 B$ 15 1.1 B$ Exxon 1.0 B$ 9.9 Chevron 10 Shell 0.3 B$ BP 5.4 5.1 5 2020 2020 2020 2021 2014 2020 2021 initial revised Realization objective objective Accelerating Best in class ne
Slide 20: 2021: prudent capital planning in uncertain environment
2021: prudent capital planning in uncertain environment Flexibility to mobilize short cycle capex Capital investment* Capex savings 2020 B$ vs original budget of ~18 B$ B$ 17.4 ~5 B$ 13.0 12 Net acquisitions Downstream Upstream projects rescheduling Flexibility on Upstream short cycle 2019 2020 2021
Slide 21: Maintaining dividend through the cycle
Maintaining dividend through the cycle Quarterly dividends since start of oil crisis 2020 TSR* % 100% Chevron Exxon BP Chevron Exxon 50% BP Shell Shell -40% -20% Q1’20 Q2’20 Q3’20 Q4’20 Building long-term trust with shareholders * Source: Bloomberg 2020 Results and Outlook | 21
Slide 22: Positive benchmark vs peers
Positive benchmark vs peers 2020 adjusted net income* 2020 CFFO** B$ B$ 5 15 2019-20 impairments* 2020 ROE* B$ % 10 Peer group: BP, Chevron, Exxon, Shell * Estimated for peers, and for BP, excluding 7.6 B$ recurring write-off ** Excl. working capital variation 2020 Results and Outlook | 22
Slide 23: Transforming while keeping focus on HSE, delivery, cost and cash
Transforming while keeping focus on HSE, delivery, cost and cash
Slide 24: Renewables: increasing scale, growing ambition
Renewables: increasing scale, growing ambition Renewables gross installed capacity Gross portfolio to 2025 GWp GWp 10 GW In operation In construction 10 7 GW 5 35 GW Adani Green (20%) In development 2018 2019 2020 2021 Gross organic Capex ~5 B$ in 2021 2025 GW target in portfolio > 10% Equity IRR fo
Slide 25: Renewables: capturing early stage opportunities at low entry cost
Renewables: capturing early stage opportunities at low entry cost Keeping up 2020 momentum Major building block of Renewables strategy 1st steps in US Offshore wind feeding utility scale projects post 2025 pipeline 1.6 + 2.2 20% of Adani Up to GW Green Energy 1.5 GW 800 MW 3 GW 5 GW 1.5 GW Qatar Ind
Slide 26: Deep Dive in Total Renewables business
Deep Dive in Total Renewables business Total Solar Adani Green Total Distributed Total Quadran Total EREN Offshore Wind International Energy Ltd generation 100% 30% 100% 100% 20% 100% Solar in Europe, Solar and onshore Solar and onshore Solar and wind in Fixed bottom in UK Global business US and Mid
Slide 27: Renewables delivering predictable long-term cash flow
Renewables delivering predictable long-term cash flow In development In development In operation In construction to 2025 post-2025 7 GW 5 GW 23 GW 4 GW Net : 3.1 Net : 3 Net : 21 Net : 2 Covered by PPA Covered by PPA Covered by PPA Covered by PPA > 99% 90% Already 40% Average remaining Average durat
Slide 28: Renewables: delivering profitable growth
Renewables : delivering profitable growth Equity IRR > 10% through capital light model Cumulative cash flow model (equity view)* B$ Farm-downs: Development accelerating cash flow, Construction Operation increasing returns, derisking portfolio Shareholder 2018-2021 return 5 farm-downs executed France
Slide 29: Growing profitable power business
Growing profitable power business Electricity production (Group share)* Electricity Proportional EBITDA (Group share)** TWh B$ 1.0 ~20 TWh 20 14 TWh 0.5 10 Renewables Renewables 2019 2020 2021 2019 2020 2021 * From renewables and gas fired power plants ** Including proportional share of equity affil
Slide 30: Integrated LNG sales growth adding resilient cash flow
Integrated LNG sales growth adding resilient cash flow 2nd largest worldwide player CFFO* LNG sales B$ Mt/y 3.2 B$ +10% +10% 42 3 38 40 34 Spot 40 $/b Supply from 3rd party 20 Supply from equity JVs Equity JV sales to 3rd party 2019 2020 2019 2020 2021 Brent ($/b) 64 42 HH ($/Mbtu) 2.5 2.1 JKM ($/Mb
Slide 31: Progressing flagship LNG projects despite the crisis
Progressing flagship LNG projects despite the crisis Russia – Arctic LNG2 Nigeria LNG Train 7 Total 21.6%1 – 19.8 Mt/y capacity Total 15% – 7.6 Mt/y capacity Leveraging Yamal LNG success Low-cost expansion 45% progress on Train 1 end-2020 EPC contracts awarded in May 20 Carbon intensity3 33 kgCO2/bo
Slide 32: Advancing renewable gas
Advancing renewable gas Europe United States Hydrogen n°1 in France Teaming up with Clean Energy First pilot project Fonroche acquisition 50/50 JV with Clean Energy* 50/50 JV with Engie 500 GWh/y renewable gas production (7 plants) Integrated strategy: 40 MW electrolyser to produce + 4 projects tota
Slide 33: Oil E&P: strong Group cash provider
Oil E&P: strong Group cash provider Performance underpinned by high-quality assets Oil E&P Upstream adjusted net operating income B$ B$, Total and peers 4 7.6 B$ CFFO* 1.5 B$ NOI 2020 2020 Brent ($/b) 42 Oil E&P : 50% of Group CFFO Best in class results Peer group: BP, Chevron, Exxon, Shell. * Excl.
Slide 34: Short term production impacted by quotas, maintaining 2025 outlook
Short term production impacted by quotas, maintaining 2025 outlook Upstream production Mboe/d 3.3 - 3.4 Mboe/d stable Pre-FID 3.0 Projects 3 already 2.9 launched Decline New Quotas* projects & Libya Decline Quotas* & Libya Base 2 2019 2020 2021 2025 12 years of proved reserves – 60% gas – 127% 3-yea
Slide 35: Taking FIDs for large profitable oil projects despite the storm
Taking FIDs for large profitable oil projects despite the storm Mero 3 – Brazil Lake Albert – Uganda Total 20% – First oil 2024 Total 56.6%, Op. – First oil 2024 Tilenga Uganda Lake Albert Kingfisher Kenya Lake Victoria Democratic Republic of Congo EACOP Tanga Tanzania 150 kb/d (100%) capacity 230 k
Slide 36: Exploration targeting low cost development projects
Exploration targeting low cost development projects Exploration Budget 2021 800 M$ Suriname & Guyana – Keeping up the 2020 momentum Block 58 4 major Block 58 Canje Bulletwood discoveries operatorship to date Jan 2021 Orinduik Maka Central 1/3 Kwaskwasi of overall Sapakara West 2021 Explo GUYANA Kanu
Slide 37: Downstream cash flow benefiting from integration
Downstream cash flow benefiting from integration 2020 refining margins at historic low CFFO* B$ 2020 Highlights 4.7 B$ > 5 B$ Resilient petrochemical 6 Refining margin Trading overperforming 5 impact Refining & Marketing & Services Chemicals contributing solid cash flow Marketing & Growing profitabl
Slide 38: European Refining: dynamic adaptation to the market
European Refining: dynamic adaptation to the market 2020 European refining margin on variable costs $/t Covid-related action plan Reduced cash spends Reduced runs to 61% by 0.4 B$ in 2020 Voluntary shutdown of (Opex, Capex) Donges end 2020 40 Min - max 2016-19 Adapting to structural demand decline 1
Slide 39: M&S: resilience supported by strong retail business
M&S: resilience supported by strong retail business M&S fuel sales evolution* M&S CFFO** 2020 vs. 2019 (%) B$ -15% 2.5 0% Diesel B2B Sales Gasoline (incl. Aviation, Marine Fuels) -40% Retail Retail Jet -80% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2020 M&S sales: -20% vs 2019 Non-fuel co
Slide 40: Outlook
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Slide 41: Strong cash flow outlook supported by profitable projects
Strong cash flow outlook supported by profitable projects Debt adjusted cash flow (DACF) B$ ROE > 10% @50 $/b 60 $/b 30 60 $/b Growth by 2025 supported by 50 $/b • iGRP: +3 B$, driven by LNG 40 $/b and Renewables growth • Downstream: +2 B$ 20 50 $/b 50 $/b • E&P: +1 B$ 40 $/b Capturing oil price ups
Slide 42: Clear priorities for cash flow allocation
Clear priorities for cash flow allocation 1 2 3 4 Capital Balance Share Dividend investment sheet buyback 12 B$ in 2021 13-16 B$ 2022-25 Gearing < 20% Flexible at Supporting dividend higher oil prices through the cycle Renewables & Power Grade A credit rating when gearing < 20% > 20% 2020 Results an
Slide 43: Transforming Total into TotalEnergies
Transforming Total into TotalEnergies Growing profitably while getting to Net Zero Growing energy from Upgrading LNG and Renewables Climate roadmap Embedding climate Business model ambition into supporting dividend financing policy through the cycle TotalEnergies a broad energy company creating long
Slide 44: Appendix
Appendix 2020 Results and Outlook |
Slide 45: Deep Dive in Total Renewables business
Deep Dive in Total Renewables business February 2021
Slide 46: Deep Dive in Total Renewables business
Deep Dive in Total Renewables business Total Solar Adani Green Total Distributed Total Quadran Total EREN Offshore Wind International Energy Ltd generation 100% 30% 100% 100% 20% 100% Solar in Europe, Solar and onshore Solar and onshore Solar and wind in Fixed bottom in UK Global business US and Mid
Slide 47: Renewables delivering predictable long-term cash flow
Renewables delivering predictable long-term cash flow In development In development In operation In construction to 2025 post-2025 7 GW 5 GW 23 GW 4 GW Net : 3.1 Net : 3 Net : 21 Net : 2 Covered by PPA Covered by PPA Covered by PPA Covered by PPA > 99% 90% Already 40% Average remaining Average durat
Slide 48: 7 GW in Operation
7 GW in Operation Producing ~6 TWh/y of electricity By developer By technology By geography GW GW gross GW gross Gross Net* 20% France wind India Total Solar Int. 3.3 1.6 Rest of Total Quadran 1.0 0.7 Europe Total EREN 1.9 0.5 Africa Total Solar DG 0.8 0.3 Middle East North Total 7.0 3.1 80% Asia So
Slide 49: 5 GW in Construction
5 GW in Construction By technology By geography GW gross GW gross 40% France Gross Net* wind India Onshore Capacity (GW) 5 3 Rest of Europe Asia Oceania Offshore South 60% America Middle East solar 21 years average PPA duration at PPA price ~55 $/MWh * Group share 2020 Results and Outlook | 4
Slide 50: 2025 pipeline > 20 GW
2025 pipeline > 20 GW Targeting > 10% equity IRR By technology By geography GW gross GW gross 10% wind Onshore Gross Net* India France Offshore Capacity (GW) 23 21 Asia/Oceania Spain South America 90% North America Rest of Europe solar 9 GW under PPA 20 years average PPA duration at PPA price ~45 $/
Slide 51: > 20 GW covered by PPA
> 20 GW covered by PPA In operation In construction In development to 2025 Gross capacity Onshore Onshore Offshore Onshore Offshore covered by PPA (GW) Wind Solar Total Wind Wind Solar Total Wind Wind Solar Total Europe 1.3 0.5 1.8 0.3 0.8 0.3 1.4 0.3 x 3.5 3.9 Asia x 4.1 4.2 0.3 - 2.1 2.4 0.4 - 4.1
Slide 52: 4 GW offshore wind post-2025 pipeline
4 GW offshore wind post-2025 pipeline Up to 400 MW > 2,000 MW 1.5 GW UK South Korea UK Erebus/Valorous Bada Round 4 award First floating Scaling up in Scaling up in offshore wind floating fixed bottom offshore wind offshore wind 50% Total 50% Total 80% stake 50% Macquarie (GIG) 50% Macquarie (GIG) T
Slide 53: Growing profitable power generation from Renewables
Growing profitable power generation from Renewables Renewables production (Group share) Renewables Proportional EBITDA (Group share)* TWh B$ ~7 TWh 0.5 4 TWh 4 2019 2020 2021 2019 2020 2021 Targeting > 30 TWh by 2025 3 B$ Group share net debt ** * Including proportional share of equity affiliates **
Slide 54: Disclaimer
Disclaimer This document may contain forward-looking statements within the meaning of the Private Securities (ii) Inventory valuation effect Litigation Reform Act of 1995, notably with respect to the financial condition, results of operations, business The adjusted results of the Refining & Chemical
Slide 55: total.com
For more information, please visit total.com TOTAL S.E. 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