Slide 1: Impact of IFRS accounting standards
Impact of IFRS accounting standards Investor Relations - www.total.com April 2005 Exhibit 99.6
Slide 2: Executive summary
Executive summary Limited impact of transition on shareholders' equity as of January 1, 2004: -1.2 B€ Temporary increase of gearing Continue performance reporting using replacement cost No material impact of IFRS application on 2004 adjusted net income and 2004 ROACE using replacement cost 1 Fr IFRS
Slide 3: Main impacts of transition to IFRS on 2004 financial statements
Main impacts of transition to IFRS on 2004 financial statements
Slide 4: Implementation of IFRS as of January 1, 2004: major transition options selected by Total
Implementation of IFRS as of January 1, 2004 : major transition options selected by Total Business combinations Employee benefits Currency translation adjustment Financial instruments No restatement of past business combinations (pooling of interests for Petrofina and Elf mergers) Recognition of acc
Slide 5: Limited impact of transition on shareholders' equity
Limited impact of transition on shareholders' equity FR IFRS MO 30.4 30.4 28.4 25.9 25.4 25.4 25.4 24.4 24.4 5 7 2.5 0.5 0.5 0.5 1 Shareholders' equity (as of January 1, 2004) French GAAP Inventories Treasury shares Employee benefits Fixed assets Financial instruments Others IFRS IAS 2 IAS 32 IAS 19
Slide 6: 2004 adjusted net income: French GAAP to IFRS
2003 2004 MO 9 9 9 9.1 0.2 0.1 2004 adjusted net income French GAAP Share-based payments IFRS IFRS 3 IFRS 2 +0.2 (0.1) 9.1 9.0 Goodwill amortization 4 Goodwill no longer amortized but tested for impairment annually +0.2 B€ impact on 2004 adjusted net income mainly in Corporate and Chemicals segment
Slide 7: Impact of IFRS application on 2004 net income
Impact of IFRS application on 2004 net income Fr IFRS MO 9.6 9.6 9.7 9.6 9.6 10.1 10.9 0.2 0.1 0.1 0.5 0.8 2004 net income French GAAP Share based payments IFRS +0.2 (0.1) 10.9 9.6 Fixed assets 5 Inventories Equity affiliates +0.5 +0.8 B€ (0.1) Goodwill amortization Impact from FIFO inventory valuat
Slide 8: Inventory valuation: FIFO vs replacement cost
Inventory valuation: FIFO vs replacement cost Accounting policy : income statement and balance sheet using FIFO Applies mainly to Downstream segment Transition impact in 2004 Increase in shareholders' equity by 1 B€ as of January 1,2004 Increase of 0.5 B€ on 2004 net income due to the rising crude a
Slide 9: Treasury shares
Treasury shares Shares held to cover share purchase options 7 Transition impact in 2004 : decreases shareholders' equity and increases net debt by 1.4 B€ Progressive reduction of this effect as the last share purchase plan expires in 2010 Scope : 9.6 million common shares out of 635 million common s
Slide 10: Employee benefits
Employee benefits Selected option at the transition date : accumulated surplus/deficit of pension plans definitively recognized on balance sheet Transition impact in 2004 Decrease in shareholders' equity by 0.5 B€* leading to small positive impact on net income 8 Further recognition of actuarial gai
Slide 11: Fixed assets
Fixed assets Component based approach : applies to refineries and petrochemical units Transition impact on shareholders' equity as of January 1, 2004: +0.2 B€ No significant impact on operating income going forward (provision accruals replaced by depreciation) Impairment of assets Transition impact
Slide 12: Impact of IFRS on performance reporting
Impact of IFRS on performance reporting
Slide 13: Presentation of consolidated statement of income under IFRS
Presentation of consolidated statement of income under IFRS New format of income statement based on a 2004 CNC* recommendation compatible with IFRS (Performance Reporting project) Will facilitate reconciliation of the income statement with the business segment information (see appendix 1) Financial
Slide 14: Convergence of sales presentation with US GAAP
Convergence of sales presentation with US GAAP Trading: sales / purchases presented on a net basis 22 B€ reduction in sales and operating expenses in 2004 Convergence with US GAAP (EITF 02-03) Presentation of excise taxes eases benchmarking 11 B€ 2004 Sales French GAAP Trading sales Excise taxes pre
Slide 15: Conclusion
Conclusion 2 TOTAL April 2005 Investor Relations - win total com
Slide 16: IFRS impact on gearing
IFRS impact on gearing Increase in gearing as of December 31, 2004 : +4% Cancellation of treasury shares +5.4 % Other IFRS restatements -1.4 % Temporary effect of cancellation of treasury shares Maintain net-debt-to-equity ratio around 25%-30% under IFRS IFRS French GAAP 12 % Net debt-to-equity rati
Slide 17: Limited IFRS impact on business segments and Group ROACE
Limited IFRS impact on business segments and Group ROACE Continue performance reporting using replacement cost ROACE targets set in Feb. 2005 unchanged 13 Q1 2005 results under IFRS released on May 4, 2005 with comparative Q1 2004 U D C G Fr 5.834 2.302 0.656 9.419 IFRS 5.859 2.331 0.767 9.52 2004 n
Slide 18: Appendix
Appendix
Slide 19: Appendix 1: 2004 consolidated statement of income under IFRS
Appendix 1: 2004 consolidated statement of income under IFRS 14 M€ French GAAP IFRS Sales 144,217 121,998 Excise taxes (21,517) (21,517) Revenues from sales 122,700 100,481 Cost of goods sold and inventory variation (81,496) (58,556) Other operating expenses (19,231) (19,103) Exploration expenses (4
Slide 20: Appendix: 2004 net operating income and average capital employed by business segment
Appendix 2 : 2004 net operating income and average capital employed by business segment 2004 average capital employed** 15 M€ Upstream Downstream Chemicals Group French GAAP 5,834 2,302 656 9,419 Goodwill amortization 9 25 68 161 Share-based payments - - - (138) Other adjustments 16 4 43 78 IFRS 5,8
Slide 21: Forward-looking statements disclaimer
This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, business, strategy and plans of Total. Such statements are based on a number of assumptions that could ultim