Totalenergies Se · EURONEXT:TTE

Totalenergies — Investor Day (November 2024)

58 slides from Totalenergies's investor day presentation, Nov 4, 2024

  1. Slide 1: More energy, less emissions, growing free cash flow

    2024 More energy, less emissions, growing free cash flow October 2, 2024

  2. Slide 2: Table of contents

    Table of contents Safety Oil & Gas Integrated Power 04 | Safety moment: Digital at the service of Safety Upstream 39 | Building Integrated Power portfolio focused on 05 | Safety in continuous improvement deregulated markets 22 | Sustainable low cost, low emission portfolio 40 | On track to deliver 1

  3. Slide 3: TotalEnergies' Executive Committee

    TotalEnergies’ Executive Committee Chairman and Chief President, Strategy Executive Officer & Sustainability President, Asia President, Gas, President, Downstream Chief Financial Renewables & Power and Marketing & Services Officer President, OneTech President, Refining President, Exploration & Chemi

  4. Slide 4: Safety Moment: Digital at the service of Safety

    Safety Moment: Digital at the service of Safety Safety, a core value 100 Years of experience used to improve the safety of our operations Strong Return of Experience (REX) process Both in safety engineering and occupational safety Events from the Company & the industry Deployment of an app advising

  5. Slide 5: Safety in continuous improvement

    Safety in continuous improvement Objective zero fatality Total recordable injury rate versus peers Primary losses of containment* per million man-hours number of incidents 1. 5 150 -50% -70% 2014–2023 2014–2023 100 1. 0 50 0.58 Peers: BP, Chevron, ExxonMobil, Shell 0. 5 2014 2015 2016 2017 2018 2019

  6. Slide 6: Energy markets supporting our balanced strategy

  7. Slide 7: Need to invest in both Oil & Gas AND low-carbon

    Need to invest in both Oil & Gas AND low-carbon World Primary Energy Demand +1.5%/y PJ/d 1,750 COP28 x3 Demand Wind, Solar & Hydro Minimum supply gap Fueled by growing population with 1,500 better living standards despite energy Oil ~ -4%/y efficiency gains 1,250 natural decline 1,000 Supply Gas ~ +

  8. Slide 8: Growing oil demand through the decade

    Growing oil demand through the decade Global liquid demand and population Mb/d base 100 in 2020 +0.8% CAGR 2020-30 Demand Driven by emerging countries 100 Pace of penetration of low-carbon technologies Supply 90 Non-OPEC supply growth OPEC+ policy Constrained investment 80 2010 2015 2020 2025 2030 S

  9. Slide 9: Next LNG supply wave will impact spot gas prices and foster demand

    Next LNG supply wave will impact spot gas prices and foster demand Global LNG supply capacity & demand Mt Pre-FID 600 Supply +5-6% Tight market over the short-term, CAGR 2023–30 Post-FID high sensitivity to any supply disruption Next LNG supply wave expected Demand in 2027-29 400 Demand Existing CAG

  10. Slide 10: Growing worldwide power demand

    Growing worldwide power demand Global power demand Global electricity demand from data TWh centers, AI, and cryptocurrencies TWh +2.5% 30,000 CAGR 1200 Growing worldwide power 1000 High case RoW demand driven by: 20,000 India Electrification in emerging 800 Base case +15% countries (AC in Global Sou

  11. Slide 11: Top: CLOV, Angola; Bottom: Khirasara solar plant, India

    Top: CLOV, Angola; Bottom: Khirasara solar plant, India

  12. Slide 12: Two pillars: Oil & Gas + Integrated Power

    Two pillars: Oil & Gas + Integrated Power Peer-leading profitability Oil & Gas Integrated Power and growth Return on Average Capital Employed 12 months ending 30-Jun-24 % 15% 10% 5% 0% Deep upstream portfolio Driving value from integrated model Exxon Shell BP Chevron Delivering high-return growth, w

  13. Slide 13: Oil & Gas production growth de-risked by 2024 FIDs

    Oil & Gas production growth de-risked by 2024 FIDs ~+3%/y growth from 2025 SEC Production Mboe/d ~+3%/y Major start-ups feeding 2025-26 growth > +3% > +3% Oil Gas 2. 5 Anchor, Ballymore US GoM Fenix Argentina Mero 2-3-4 Brazil Jerun Malaysia 2. 0 Ratawi Phase 1 Iraq NFE Qatar Gas Tilenga Uganda 1. 5

  14. Slide 14: Visibility and discipline on organic Capex

    Visibility and discipline on organic Capex Organic Capex B$/y 18 Deep portfolio of growth opportunities: no need for large M&A 12 Organic Capex ~18 B$/y over 2024–26 to deliver growth in both pillars • Secured EPC contracts that mitigate project inflation risk • Flexibility to respond to changing ma

  15. Slide 15: Disciplined & sustainable capital investment strategy

    Disciplined & sustainable capital investment strategy Integrated Power Maintenance Oil 14-18 B$/y through cycles Low-carbon energies 2025-30: keeping 2 B$/y Oil 16-18 B$/y short-term downward 2025-30 Low-carbon Capex flexibility molecules Maintenance Gas LNG & Gas New projects Strategy & Outlook Cap

  16. Slide 16: LNG: de-risking exposure to spot gas price

    LNG: de-risking exposure to spot gas price TotalEnergies LNG supply and sales* Mt Developing projects with low liquefaction 40 costs, top-tier in the merit curve 30 HH Limiting exposure to spot gas prices by transforming Henry Hub LNG supply Signed in 2024 into oil-indexed sales in Asia 20 HH Brent

  17. Slide 17: Integrated Power: objective ROACE at least 12%

    Integrated Power: objective ROACE at least 12% Upstream Flexible ~30% gas production* generation Merchant Customers Clean firm power exposure ~70% Renewables Storage > 100 TWh power generation by 2030 (> 500 kboe/d) Strategy & Outlook * Reported in E&P/Integrated LNG segments O ctober 2024 – Strateg

  18. Slide 18: More energy, less emissions, growing free cash flow

    More energy, less emissions, growing free cash flow Energy production GHG emissions Free Cash Flow(3) Mboe/d B$ Low-carbon Scope 1+2 from operated facilities molecules MtCO2e Integrated ~20% Electricity Power 3 +4%/y 40 -40%(1) 20 > +10 B$ at 80 $/b +5 B$ 20 at 60 $/b 40% Gas 2 2015 2023 2030 Oil &

  19. Slide 19: TotalEnergies' employees engaged in the successful execution of the strategy

    TotalEnergies’ employees engaged in the successful execution of the strategy Committed employees… … who are also committed shareholders Agree with statement % Proud to work for my company 90% 72% Confident in TotalEnergies’ ability to achieve its transition 92% 8% 5% >65% Work in safe conditions 95%

  20. Slide 20: Growing today's free cash flow engine

    Growing today’s free cash flow engine Upstream Integrated LNG Downstream Mero 2, Brazil Courtesy of Petrobras

  21. Slide 21: Upstream

    TS TotalEnergies Upstream

  22. Slide 22: Sustainable low cost, low emission portfolio

    Sustainable low cost, low emission portfolio Rich portfolio Low cost, low emission Value over volume Production costs(1) Maintaining reserves life $/boe Profitability assessment 12 years proved reserves 15 50 $/b environment 18 years proved + probable and 10 (2) Peers 100 $/t carbon price Reserves L

  23. Slide 23: Focused on delivering major high-margin oil projects

    Focused on delivering major high-margin oil projects Top 11 projects: ~30 $/boe CFFO at 50 $/b in 2025-30, ~50 $/boe at 80 $/b Major oil projects (2024-30 start-up) Global oil projects merit curve kboe/d share op. FID FO Technical costs, $/boe Mero 2 Brazil 180 19.3% 40 Anchor US 75 37.1% Mero 3 Bra

  24. Slide 24: Suriname: launching GranMorgu

    Suriname: launching GranMorgu 12 months from end of appraisal to FID First oil expected mid-2028 Designed to minimize emissions 750 Mb 10.5 B$ ~15% IRR All-electric FPSO recoverable resources Capex at 60 $/b, incl. carry High energy efficiency: 220 kb/d 19 $/boe < 16 kg/boe waste heat recovery, HP g

  25. Slide 25: Pursuing Namibia exploration while progressing Venus development

    Pursuing Namibia exploration while progressing Venus development Block 2912 Tamboti Venus Progressing Venus engineering bia a mi ca N ri h Af 160 kb/d development t S ou Block 2913B Exploration drilling resuming in 4Q-24 Tamboti prospect, North of Venus 3B/4B Additional prospectivity South of Venus,

  26. Slide 26: Mitigating project cost inflation

    Mitigating project cost inflation Suriname Iraq FPSO: Use of contractor standards GGIP (Gas Growth Integrated Project) Contracts & Procurement Replicate proven efficient regional Design optimization: 70% plant Innovative approaches design footprint reduction • Rig ownership (Tungsten Explorer) Contr

  27. Slide 27: Maintain competitive advantage on Opex in an inflationary environment

    Maintain competitive advantage on Opex in an inflationary environment Lean & Digital Logistics & Procurement Structure costs Lean Operating model Synergies & optimization Adapt structure costs to • Innovative framework to improve cost- • Logistics bases, marine spread, production in mature affiliate

  28. Slide 28: Rio Grande LNG, USA

    Rio Grande LNG, USA

  29. Slide 29: A diversified and integrated portfolio resilient through cycles

    A diversified and integrated portfolio resilient through cycles Yamal LNG Snøhvit LNG ECA LNG(1) Cameron LNG + T4 RGLNG(1) + T4 ELNG Qatar Adnoc LNG Yemen LNG(2) Ruwais LNG(1) Oman LNG & Qalhat LNG Marsa LNG(1) +50% equity + offtake Equity production Nigeria LNG + T7(1) growth* 2023–2030 (1) In cons

  30. Slide 30: Developing projects with low liquefaction cost, top-tier in the merit curve

    Developing projects with low liquefaction cost, top-tier in the merit curve LNG projects pipeline LNG projects merit curve $/mcf DES Asia, breakeven at 11% discount Capacity share First LNG Mt/y ECA Mexico 3 16.6% 2026 under construction 12 NFE Qatar 32 6.25% 2026 NFS Qatar 16 9.375% 2028 NLNG T7 Ni

  31. Slide 31: Managing exposure to spot gas prices by transforming Henry Hub supply into oil-linked sales

    Managing exposure to spot gas prices by transforming Henry Hub supply into oil-linked sales TotalEnergies LNG TotalEnergies LNG portfolio Asian LNG contracts** signed in 2024 to date supply and sales* net exposure* Mt Mt IOCL India 0.8 Mt/y 10y from 2026 40 40 Sembcorp Singapore 0.8 Mt/y 16y from 20

  32. Slide 32: LNG cash flow growth outpaces volume growth

    LNG cash flow growth outpaces volume growth LNG sales* CFFO Mt B$ 10 80 $/b 50 x1.3 x1.2 40 80 $/b 60 $/b x1.6 30 x1.3 60 $/b 5 x2.2 20 x1.8 10 2018 2024 2028 2030 Brent ($/b) 71 | 82 82 60 | 80 60 | 80 TTF ($/Mbtu) 8 | 10 10 6|8 6|8 Average LNG Price 6 | 10 10 6|8 6|8 ($/Mbtu) LNG * Excluding spot

  33. Slide 33: Jubail refinery, KSA

    Jubail refinery, KSA

  34. Slide 34: Downstream: harvesting free cash flow while transitioning

    Downstream: harvesting free cash flow while transitioning Oil production, refining throughput and oil product sales Mboe/d Refining & Chemicals: focused Capex on low breakeven projects 2. 0 • Petrochemicals: advantaged feedstock • Low-Capex biofuels through coprocessing and conversions 1. 5 Marketin

  35. Slide 35: R&C: Delivering energy and cost saving plans to lower breakeven

    R&C: Delivering energy and cost saving plans to lower breakeven Energy Savings Fixed Costs 2023-25: 400 M$ investment in energy efficiency, Digitalization to generate execution efficiency gains electrification & heat recovery Innovative unmanned technologies ~100 M$/y > 1 Mt energy cost savings CO2e

  36. Slide 36: M&S: Generating value through competitive edges

    M&S: Generating value through competitive edges Retail Networks Lubricants EV Capitalize on core leading Profitable, low Capex business Selective growth in Europe positions in France and Africa Differentiation through high-end Growing HPC footprint in Europe, Large network in Africa to supply produc

  37. Slide 37: Producing low-cost SAF through proven pathways

    Producing low-cost SAF through proven pathways Securing competitive Focus on HEFA*: two efficient production Advancing feedstock pathways with customers Integrate with waste Coprocessing Close cooperation and residues suppliers • Leveraging existing refineries with very low upfront investment with a

  38. Slide 38: Profitably building a future cash engine

    Profitably building a future cash engine Myrtle Solar, US

  39. Slide 39: Building Integrated Power portfolio focused on deregulated markets

    Building Integrated Power portfolio focused on deregulated markets 2030 power generation By technology By geography USA Europe Solar Brazil >100 Onshore wind >100 India TWh Offshore wind TWh O&G countries CCGT ROW Deregulated markets >70% in deregulated markets where we can implement our integrated

  40. Slide 40: On track to deliver 100 GW renewables by 2030

    On track to deliver 100 GW renewables by 2030 Renewable gross installed capacity GW 100 BESS Offshore wind 80 ~80% already identified: selectivity on a large pipeline Onshore wind of projects (value over 60 volume) Balanced portfolio 40 of technologies 35 24 ~10% capacity Solar in offshore wind to 2

  41. Slide 41: Deploying our Integrated Power model to deliver Clean Firm Power in the US, UK and Germany

    Deploying our Integrated Power model to deliver Clean Firm Power in the US, UK and Germany Upstream Flexible Renewables Storage Merchant Customers gas production* generation 2024 0.5 Bcf/d 4 GW > 1 GWac gas production 1.5 GW CCGT solar & wind 300 MW BESS 20% merchant Corporate PPA 2024 2024 0.4 Bcf/

  42. Slide 42: Delivering premium Clean Firm Power through integration of renewable and flexible assets

    Delivering premium Clean Firm Power through integration of renewable and flexible assets Integration to deliver Clean Firm Power MWh Solar + wind 1 + 2 = 3 “clean” 4 3 Extra An intermittent electron has production sold on the market no utility value: needs to be Clean Firm Power complemented with fl

  43. Slide 43: Levers to reach > 12% ROACE target

    Levers to reach > 12% ROACE target > 12% A Develop & Produce better: scale and costs reduction ~10% C Portfolio Multi-year modules Capacity Reservation Agreements (Jinko, First Solar) B optimization A Merchant Capex & Opex benchmarking: US solar projects Capex in second quartile exposure Scale & Cle

  44. Slide 44: Growing profitable Integrated Power business

    Growing profitable Integrated Power business Electricity generation CFFO Company share, TWh B$ 6 >5 ~30% Flexible generation +3 B$ 100 >4 4 2.5-3 50 ~70% Renewables 2 2023 2024 2028 2030 2023 2024-26 2028 2030 Free Cash Flow positive by 2028 Integrated Power O ctober 2024 – Strategy and O utlook | 4

  45. Slide 45: Kamuthi solar plant, India

    ZZ 1 .DT KXK.M.R.SSa Legh ISS 0

  46. Slide 46: Asia: the heart of energy markets growth

    Asia: the heart of energy markets growth Asia Total Primary Energy Demand PJ/d STEPS Need to reconcile the need for more energy +2.6%/y APS and the commitment to less emissions 750 Renewables Growing population and higher living standards Net zero pledges made by largest countries Gas Growing use of

  47. Slide 47: Asia: key outlet for the coming LNG supply wave

    Asia: key outlet for the coming LNG supply wave Asia LNG market evolution TotalEnergies LNG sales to Asia Mt Mt 300 European gas crisis +8% CAGR 2015–21 30 Other Asia India Spot 200 China 20 Spot 100 Contracted 10 Japan, South Korea, Taiwan Contracted 2015 2016 2017 2018 2019 2020 2021 2022 2023 202

  48. Slide 48: India: fueling the low-cost integrated energy model

    India: fueling the low-cost integrated energy model Gas Renewables Supply Chain Positioned to capture LNG Leveraging gradual market Expanding our supplier base growth liberalization PV modules sourcing: agreement Growing LNG market led by gas 20% in AGEL with Adani Mundra Solar infrastructure develo

  49. Slide 49: Malaysia: an anchor point in South-East Asia, targeting further growth

    Malaysia: an anchor point in South- East Asia, targeting further growth Production SB Becoming operator of SK 408* Exploration 412 Jerun Phase 1: Start-up in July 2024 Gas production growth potential: • Jerun Ph 2, FID expected in 2025, startup in 2028 DW2E Marjoram • Future tie-back opportunities S

  50. Slide 50: Investing in TotalEnergies

  51. Slide 51: Low breakeven and increasing cash generation underpin higher shareholder returns

    Low breakeven and increasing cash generation underpin higher shareholder returns Breakeven* CFFO vs Brent Payout** $/b B$ % of CFFO 100 2022 > 40% 40% 40 75 2023 2024 30 50 2021 2019 30% 2004–18 25 20 2020 10 20% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 25 50 75 100 $/b 2021 2022 2023 1H24

  52. Slide 52: More energy, less emissions, growing free cash flow

    More energy, less emissions, growing free cash flow Energy production GHG emissions Free Cash Flow(3) Mboe/d B$ Low-carbon Scope 1+2 from operated facilities molecules MtCO2e Integrated ~20% Electricity Power 3 +4%/y 40 -40%(1) 20 > +10 B$ at 80 $/b +5 B$ 20 at 60 $/b 40% Gas 2 2015 2023 2030 Oil &

  53. Slide 53: Delivering strong free cash flow growth that supports growing distributions

    Delivering strong free cash flow growth that supports growing distributions 2024 CFFO sensitivities 2025-30 Cumulative CFFO B$ +2.8 B$/y for +10 $/b Brent +0.4 B$/y for +2 $/Mbtu NBP/TTF 200 < 50 $/b +0.5 B$/y for +10 $/t ERM Post-dividend breakeven > 110 B$ Free Cash Flow* at 80 $/b 150 2024 (~80 B

  54. Slide 54: Cash flow allocation

    Cash flow allocation Dividends: Share buybacks*: Net investment: +7% paid in 2023 and in 2024 10% 8 B$ in 2024 2024: 17-18 B$ At least +5% in 2025 Gearing 1H24 2 B$/qtr in 2025 2025-30: 16-18 B$/y assuming reasonable market (= 2024 buybacks) conditions > 40% payout through the cycles Payout = (divid

  55. Slide 55: Leading performance and shareholder return

    Leading performance and shareholder return Adjusted EPS Total shareholder return (TSR) CAGR 2014–2023 base 100 at 31-Dec-14 250 6% TotalEnergies 6% 200 Chevron Exxon Chevron Shell 150 BP 3% Exxon 100 BP Shell 50 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 ‘24 Investing in TotalEnergies Source: B

  56. Slide 56: Strategic consistency, growth and resilience

    More energy, less emissions, growing free cash flow Strategic consistency, growth and resilience De-risked high-margin growth LNG growth: de-risking Integrated Power: from deep upstream portfolio exposure to spot gas on the way to 12% ROACE > 40% payout through the cycles: growing dividend, sustaine

  57. Slide 57: Disclaimer and adjustment items

    These adjustment items include: 1. Special items The terms “TotalEnergies”, “TotalEnergies company” and “Company” in this document are used to designate Due to their unusual nature or particular significance, certain transactions qualifying as “special items” are excluded from the business segment T

  58. Slide 58: For more information go to

    Corporate Communications TotalEnergies SE 2, place Jean-Millier 92400 Courbevoie, France Tel.: +33 (0)1 47 44 45 46 Share capital: €5,994,199,152.50 Registered in Nanterre: RCS 542 051 180 For more information go to

TotalEnergies — Investor Day (November 2024) on 6ix