Imperial Oil Limited · TSX:IMO
Imperial Oil — Shareholder Meeting (April 2018)
30 slides from Imperial Oil's shareholder meeting presentation, Apr 27, 2018
Slide 1: Form 8-K Current Report
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): May 1, 2018 IMPERIAL OIL LIMITED (Exact name of registrant as specified in its char
Slide 2: Item 7.01 Regulation FD Disclosure
Item 7.01 Regulation FD Disclosure On April 27, 2018, Rich Kruger, the Company’s chairman, president and chief executive officer, gave a presentation at the Company’s annual general meeting in Calgary, Alberta (the “Presentation”) that included an update on the Company’s current operations and major
Slide 3: Item 9.01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits. (d) Exhibits. The following exhibit is furnished as part of this Current Report on Form 8-K: 99.1 A copy of the slides presented during the Presentation. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has du
Slide 4: Annual Meeting of Shareholders
Exhibit 99.1 April 27 Annual Meeting of Shareholders
Slide 5: 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 6: Meeting proceedings
Meeting proceedings Rich Kruger Chairman, President and CEO Lara Pella Corporate Secretary Imperial │ 2018 │ 3
Slide 7: Audit committee report
Audit committee report Victor Young Audit Committee Chair Imperial │ 2018 │ 6
Slide 8: Election of directors
Election of directors David Krystyna Rich Jack David Jerry Sheelagh Cornhill Hoeg Kruger Mintz Sutherland Wascom Whittaker Imperial │ 2018 │ 8
Slide 9: Shareholder proposals
Shareholder proposals Rich Kruger Chairman, President and CEO Lara Pella Corporate Secretary Imperial │ 2018 │ 9
Slide 10: Chairman’s remarks
Chairman’s remarks Rich Kruger Chairman, President and CEO Imperial │ 2018 │ 10
Slide 11: Global energy outlook
Global energy outlook Megatrends driving world’s increasing demand for energy Energy demand, quadrillion BTUs 750 Oil to remain largest energy source + 25% 500 Renewables / other Gas demand led by power generation Coal 250 Gas Policies and economics to affect mix Oil Outlook assumes major efficienci
Slide 12: Global liquids demand
Global liquids demand Increasing based on commercial transportation and chemicals growth Liquids production, mbd 120 ± 5% annual base decline 90 80% of 2040 demand from new supplies 60 Existing New Supplies needed from multiple sources 30 Requires major ongoing investment 0 2017 2040 Source: Interna
Slide 13: Canada’s opportunity
Canada’s opportunity Dual challenge to meet growing demand, reduce environmental impact World scale oil and gas resources Major new sources of competing supply Competitiveness must be addressed New technology and innovation key Imperial │ 2018 │ 13
Slide 14: Imperial’s winning formula
Imperial’s winning formula Increase cash flow, deliver industry-leading returns throughout the cycle Deliver industry Leverage Continue to Be the most Aggressively leading technology, achieve valued partner capture new performance in integration and improvements in with key opportunities and reliabi
Slide 15: Safety and operational integrity
Safety and operational integrity Priority on protecting people and ensuring effective risk management TRIR, incidents per 200,000 hours worked1 # spills 0.5 15 5-year 0.4 average 1-year 10 0.3 average best ever 5-year 0.2 average 2017 5 0.1 0.0 0 Canadian peers Imperial 5-year average 2017 1Equivale
Slide 16: 2017 results
2017 results Focused on strengthening performance and returning value to shareholders 375,000 boepd $490 million Upstream production Net income 383,000 bpd $2,763 million Refinery throughput Cash from operations 492,000 bpd $1,151 million Petroleum product sales Returned to shareholders Imperial │ 2
Slide 17: Upstream performance
Upstream performance $6.1 billion cash generated from operating activities over the last five years Production, kboed1 400 Cold Lake: industry-leading in situ 300 + 160 kbd near-term average 200 Kearl: large, long-life mining + 200 kbd2 near-term, 240 kbd post-2020 100 Syncrude: pioneer in mining 0
Slide 18: Kearl
Kearl Reliability improvements to achieve annual average production of 240 kbd1 Production, kbd1 250 200 Actions completed in 2017 + Improved ore preparation performance 150 + Enhanced piping durability 100 Progressing investments through 2019 50 + Adding supplemental crushing capacity + Installing
Slide 19: Downstream performance
Downstream performance $7.8 billion cash generated from operating activities over the last five years Volumes, kbd1 500 Petroleum product sales Premium customer offering + Quality brands and loyalty programs + Coast to coast supply and customer support Refinery 250 + Leadership in product R&D throug
Slide 20: Refining
Refining Leading performance in North America, top-tier in Canada Performance Energy Non-energy Total Net cash quartiles efficiency cash opex unit cost margin 1st 2nd 3rd 4th Imperial refineries Canadian industry ex. Imperial Source: 2016 Solomon survey, includes 96 refineries in North America (13 i
Slide 21: Fuels and lubricants marketing
Fuels and lubricants marketing Aggressively capturing new business and meeting customer needs New customer offerings + Introduction of Synergy fuels nationwide + Conversion of former Loblaw's locations to Mobil brand + Exclusive fuel partner of PC Optimum loyalty program Long-term supply agreements
Slide 22: Research and technology
Research and technology Leveraging technology to deliver economic and environmental benefits Pilot results, indexed 100 50 SAGD SA- SAGD $150-200 million annual investment 0 Capital intensity Cumulative SOR Pioneer in solvent-based technologies GHG intensity, indexed1 Industry 100 Imperial Project r
Slide 23: Value chain integration
Value chain integration Demonstrating financial resilience throughout the business cycle Cash from operating activities, $ billion Five-year average, % 5 4 3 2 1 0 2013 2014 2015 2016 2017 Imperial │ 2018 │ 23
Slide 24: Financial strength
Financial strength Unmatched balance sheet, optionality and priority access to financial markets YE 2017 debt to capital, % 50 Capital structure flexibility 25 Borrow on most attractive terms Leverage XOM relationship 0 CNQ CVE SU HSE IMO BBB+ BBB A- BBB+ AA+ Ratings1 1Based on S&P Global debt ratin
Slide 25: Shareholder distributions
Shareholder distributions $1.2 billion returned through dividends and share purchases in 2017 Annual dividend Shares outstanding, per share1, C$ millions 0.75 1,200 Reliable and growing dividends + 127 consecutive years of payment 0.50 800 + 23 consecutive years of growth + 6.5% 10-yr compound annua
Slide 26: 2018 Q1 results
2018 Q1 results Continued focus on enhancing performance and increasing shareholder returns 370,000 boepd $516 million Upstream production Net income 408,000 bpd $985 million Refinery throughput Cash from operations 478,000 bpd $384 million Petroleum product sales Returned to shareholders Imperial │
Slide 27: Why Imperial?
Why Imperial? Distinct competitive advantages that deliver long-term shareholder value Asset base Growth opportunities High quality, long-life assets across Large inventory of opportunities to the portfolio support future upstream growth Operational excellence Technology leadership Technical, operat
Slide 28: Q&A
Slide 29: Scrutineers’ report
Scrutineers’ report Lara Pella Corporate Secretary Imperial │ 2018 │ 29
Slide 30: Annual Meeting of Shareholders
April 27 Annual Meeting of Shareholders