Imperial Oil Limited · TSX:IMO
Imperial Oil — Shareholder Meeting (May 2021)
26 slides from Imperial Oil's shareholder meeting presentation, May 4, 2021
Slide 1: 2021 Annual Meeting of Shareholders
2021 Annual Meeting of Shareholders May 4, 2021
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. Forward-looking statements can be identified by words such as believe, anticipate, intend, propose, plan, goal, s
Slide 3: Meeting proceedings
Meeting proceedings Brad Corson Chairman, President and CEO Ian Laing Corporate Secretary
Slide 4: Election of directors
David Bradley Matthew Krystyna Miranda Jack David Cornhill Corson Crocker Hoeg Hubbs Mintz Sutherland Election of directors
Slide 5: Election of auditor
Election of auditor PricewaterhouseCoopers LLP
Slide 6: Shareholder proposal
ie Imperial oil COLD LAKE © OPERATIONS CERTIFIED WILDLIFE ATWORK aa a i WILDLIFE HABITAT COUNCK, Shareholder proposal a as Imperial
Slide 7: Chairman’s remarks
Chairman’s remarks Brad Corson Chairman, President and CEO
Slide 8: Strong performance in a challenging environment
Reflecting on the past year Strong performance in a challenging environment It was a challenging year With pandemic and economic downturn Sector faced economic, environmental and regulatory pressures The Company's strengths served us well Impressive organizational talent and commitment S
Slide 9: Imperial’s COVID-19 response
Imperial’s COVID-19 response Protecting our workforce and communities; positioning for recovery Continued operations ensuring reliable energy supply Careful management of workforce health and safety Rapid testing implemented at sites, including during turnarounds Working with industry peers
Slide 10: Built to weather a challenging business environment
Built to weather a challenging business environment Exceeded reduction commitments, focused on sustainment Capital expenditures $B 2 -$0.8B, (-45%) Focus on what we can control 1 Take the long-term view 0 Maintaining balance sheet strength 2020 Plan 2020 Actual Production & manufacturing expen
Slide 11: Near-term market conditions
Near-term market conditions Demand recovery continues, remains volatile Global oil supply/demand balance mbd US$/bbl 105 80 Globally Vaccinations, economic activity increasing fuel demand 70 100 Industry production rising, OPEC+ unwinding cuts 60 Regional COVID responses continue to evolve 9
Slide 12: Corporate sustainability report highlights
Corporate sustainability report highlights Providing responsible energy solutions Environment Social Governance Developing pathways in support of a net- Collaborating with Indigenous Committed to the highest ethical and zero future communities business standards Continued focus on efficient use of P
Slide 13: Exploring pathways to net-zero
Exploring pathways to net-zero Technology enables production growth and emissions reductions Short Term Medium Term Long Term Next-generation Energy diversification Renewables and GHGi upstream technologies Ongoing Developing Evaluating • Cogeneration • Advanced in situ technologies • Blue hydrogen
Slide 14: Upstream performance
Upstream performance Demonstrated resilience through unprecedented external challenges Consistent production koebd Safely assured business continuity Rapid response to weak demand and low 400 realizations Expenses reduced ~15% vs. 2019 Capital reduced by ~55% vs. 2019 Structural cost reduc
Slide 15: Kearl journey
Kearl journey Stable, reliable operations enabling optimization phase Production Unit P&M expenses Reliability focus delivering improvements kbd $US/bbl 300 40 Resolved significant reliability ‘bad actors’ Extraction and froth treatment upgrades Supplemental crushers enabling 240+ kbd COVID
Slide 16: Industry-leading digital technology
Industry-leading digital technology Potential for $750 million of annual savings Autonomous haul systems Significant value potential $150 million delivered to date $500 million in defined opportunities Principles of digital investment: Low capital requirements First autonomous 797F globall
Slide 17: 2020 downstream performance
2020 downstream performance Demonstrated resilience through unprecedented external challenges Refinery throughput Ensured safe, reliable supply of fuel to Canadians kbd 400 Rapid response to demand weakness Expenses reduced ~20% vs. 2019 Capital reduced by ~50% vs. 2019 Product & crude sla
Slide 18: Downstream’s total package
Downstream’s total package Coast-to-coast reach, leveraging strategically advantaged assets and brands Nationwide logistics network Imperial and third-party owned sites Industry leading refiner, advantaged crude access Superior brands & sales portfolio ~2100 Retail service stations Market le
Slide 19: Chemical site integration drives efficiency
Chemical site integration drives efficiency Long-term strength with increasing demands Sales kta Profitable business with robust demand 1000 through 2020 800 Long-term demand growth for key 600 products 400 200 Refinery integration provides leading cost structure, profitability advantage 0 201
Slide 20: Financial profile
Financial profile Resilient & balanced Cash from operating activities Integrated, balanced business Growing production, long-life assets 2010-2020 Advantaged downstream Attractive Chemical business ExxonMobil relationship / scale / expertise Resilient balance sheet Downstream, Chemical a
Slide 21: Cash generation
Cash generation Capturing upside, protecting downside Cash flow from operating activities $B 5 $US 60/bbl WTI 4 $US 50/bbl WTI 3 $US 40/bbl WTI >$US 36/bbl WTI: Surplus cash 2 $US 36/bbl WTI: Sustaining capital + dividend 1 0 $US 27/bbl WTI: Cash flow from operating activities 2021-2025 period avera
Slide 22: Shareholder returns
Shareholder returns Continued focus on returning excess cash to shareholders Dividend per share, as paid Shares outstanding # shares (million) $ / share 900 1.00 CAGR = 10% 0.80 CAGR = 5% 800 0.60 0.40 700 0.20 0.00 600 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2011 2012 2013 2014 2015
Slide 23: The Imperial advantage
The Imperial advantage Delivering a winning strategy Focusing on the ‘core’ Get the most out of current high-quality, long-life assets Leveraging history as technology leader Commitment to deliver shareholder value Return cash to shareholders Strong, growing, sustainable dividend, share
Slide 24: Q&A
Q&A
Slide 25: Scrutineers’ report
Scrutineers’ report Ian Laing Corporate Secretary
Slide 26: 2021 Annual Meeting of Shareholders
2021 Annual Meeting of Shareholders May 4, 2021