Imperial Oil Limited · TSX:IMO
Imperial Oil — Shareholder Meeting (April 2017)
27 slides from Imperial Oil's shareholder meeting presentation, Apr 28, 2017
Slide 1: Annual General Meeting
April 28 Annual General Meeting
Slide 2: Cautionary statement
Cautionary statement Statements of future events or conditions in this report, including projections, targets, expectations, estimates, and business plans are forward-looking statements. Actual future financial and operating results, including demand growth and energy source mix; production growth a
Slide 3: Meeting proceedings
Meeting proceedings Rich Kruger Chairman, President and CEO Lara Pella Corporate Secretary
Slide 4: Audit Committee report
Audit Committee report Victor Young Committee Chair
Slide 5: Meeting proceedings
Meeting proceedings Rich Kruger Chairman, President and CEO Lara Pella Corporate Secretary
Slide 6: Election of directors
Election of directors Victor David Jerry Krystyna Sheelagh Rich Jack Young Sutherland Wascom Hoeg Whittaker Kruger Mintz
Slide 7: Chairman's remarks
Chairman’s remarks Rich Kruger Chairman, President and CEO
Slide 8: Global energy demand
Global energy demand Expected to increase 25% by 2040, oil & gas remain key Quadrillion BTUs 750 Megatrends drive growth + 25% Renewables / 500 other Gas demand led by power generation Coal 250 Gas Oil remains largest energy source Oil Outlook assumes major efficiencies 0 2015 2040 Source: ExxonMobi
Slide 9: Liquids demand
Liquids demand Significant new production required to offset decline Global production, mbd 120 Supply growth Natural decline without investment 90 Decline replacement 80% of demand from new supplies 60 Existing New Supplies needed from all sources 30 Requires major ongoing investments 0 2015 2040 S
Slide 10: Responsible development
Responsible development Dual challenge to meet demand, reduce environmental impact Technology and innovation key Climate policies to affect energy mix Canadian oil sands part of solution Investments must compete globally Imperial │ 2017 │ 10
Slide 11: Business environment
Business environment Ongoing challenges, time of uncertainty and opportunity Continued low global prices Evolving policies and regulations Global competitiveness pressures Progress on market access Imperial │ 2017 │ 11
Slide 12: Company priorities
Company priorities Base business performance and creating value Focus on business fundamentals Disciplined cost management Progress growth opportunities Advocate for competitive policy Imperial │ 2017 │ 12
Slide 13: Safety and operational integrity
Safety and operational integrity Leading performance, effective risk management Incidents per 200,000 hours worked1 # of spills 0.6 30 5-year average 0.4 20 1-year best ever 0.2 10 record low 0.0 0 Canadian Imperial 2012-14 2015 2016 peers average 1Equivalent to 100 workers for one year Imperial │ 2
Slide 14: 2016 results
2016 results Strengthened core assets, relentless cost management 386,000 boepd $2.2 billion Upstream production Net income 362,000 bpd $2.0 billion Refinery throughput Cash from operations 484,000 bpd $1.3 billion Petroleum product sales Cost reductions versus plan Imperial │ 2017 │ 14
Slide 15: Upstream
Upstream Growing production, driving unit costs down Production1, Cash opex, kboepd US$/boe 400 30 Completed growth projects 300 20 Improving asset performance 200 10 Capturing market savings 100 Enhancing organizational efficiency 0 0 2014 2015 2016 1IMO share, before royalties Data as reported in
Slide 16: Refining
Refining Operational excellence and integration drive performance Throughput, kbd1 400 + 11 kbd 300 Application of global best practices 200 Rigorous and disciplined cost control 100 Significant downstream cash generation 0 10-year 3-year average average 1For the years ending 2016, excludes Dartmout
Slide 17: Petroleum product sales
Petroleum product sales Growing sales through long-term supply agreements kbd1 500 + 29 kbd 400 Delivering high-quality products 300 Establishing valued relationships 200 100 Enhancing customer experience 0 10-year 3-year average average 1For the years ending 2016 Imperial │ 2017 │ 17
Slide 18: Capital efficiency
Capital efficiency Maximizing investment value and life-cycle performance Return on capital employed, % 25 20 10-year average1 15 10 2016 5 0 IMO HSE CNQ SU CVE -5 Source: company publications 1For the years ended 2016 Imperial │ 2017 │ 18
Slide 19: Financial strength
Financial strength Industry-leading balance sheet, access to financial markets Year-end 2016 debt to capital, % 40 30 Capital structure flexibility 20 Most attractive borrowing terms 10 Leverage XOM relationship 0 CNQ CVE SU HSE IMO BBB+ BBB A- BBB+ AA+ Ratings1 1Based on S&P Global debt rating Impe
Slide 20: Shareholder distributions
Shareholder distributions Over $10 billion returned to shareholders in the last 10 years Dividend per share1, C$ 0.60 100+ years of consecutive payments 0.40 22 years of consecutive growth 0.20 6.3% 10-year compounded growth rate Repurchased 50% of shares since 1995 0.00 2006 2016 1Declared basis, a
Slide 21: Financial resilience
Financial resilience Strength provides flexibility under a range of oil prices 2016-20 annual average, C$ billion 4 $55 3 Ability to meet highest priorities $45 2 Growth Significant cash flow leverage 1 Sustaining $35 Flexibility for new opportunities Dividend1 0 Dividend Cash flow and capex from op
Slide 22: Future opportunities
Future opportunities Large, high quality resource base with significant potential Year-end 2016 resource base, billion boe1 25 Other 22 billion barrels of oil equivalent1 20 Contingent In situ project applications submitted 15 Resource Mining 10 On Hold Investment scope, pace to be determined Develo
Slide 23: Technology leadership
Technology leadership Unparalleled commitment, history of research and innovation Well-to-wheels GHG emissions intensity, indexed % 125 Production Imperial breakthrough technologies Refining 100 Distribution 75 CSS Mining SAGD SA-SAGD Kearl Avg barrel Other solvent dilbit synthetic dilbit dilbit* di
Slide 24: Why Imperial?
Why Imperial? Distinct competitive advantages that deliver long-term value Asset base Growth opportunities High quality, high performing assets A large inventory of attractive opportunities across the portfolio to support future upstream growth Operational excellence Technology leadership Effective
Slide 25: Question period
Question period Rich Kruger Chairman, President and CEO
Slide 26: Scrutineers' report
Scrutineers’ report Lara Pella Corporate Secretary
Slide 27: Annual General Meeting
April 28 Annual General Meeting