Totalenergies Se · EURONEXT:TTE
Totalenergies — FY2023 Earnings Presentation
33 slides from Totalenergies's earnings presentation, Feb 8, 2024
Slide 1: Executing our strategy, delivering superior returns
Executing our strategy, delivering superior returns February 7, 2024
Slide 2: 2023 Results & 2024 Objectives
2023 Results & 2024 Objectives Executing our strategy, delivering superior returns 03 | Safety moment 04 | Safety: core value 06 | Two pillars to support our energy transition strategy 15 | TotalEnergies in a new era: stronger cash flow, low breakeven, low debt 07 | Strong cash flow underpins invest
Slide 3: Safety moment
Safety moment Learning and improving from fatal accidents Life line Standby rescue diver Netherlands February 3, 2023 Torsten 55 years old Was removing spent catalyst from the walls inside a reactor, under nitrogen (industry practice). Became trapped by the collapse of a pile of catalyst. Immediate
Slide 4: Safety: core value
Safety: core value Objective zero fatality Total recordable injury rate versus peers Primary losses of containment* per million man-hours number of incidents 100 1,0 -50% Since 2018 50 0.63 Peers: BP, Chevron, Exxon, Shell 0,5 2018 2019 2020 2021 2022 2023 2020 2021 2022 2023 Safety * Tier 1+2, as d
Slide 5: Consistent energy transition strategy delivering results
TS TotalEnergies 2023 Consistent energy transition strategy delivering results
Slide 6: Two pillars to support our energy transition strategy
Two pillars to support our energy transition strategy Low cost, Top 3 global LNG Driving value low emission integrated portfolio from integration Celebrating 100 years in 2024: from oil exploration in Iraq Rich upstream Strong LNG Positive net cash to becoming a global leader projects portfolio proj
Slide 7: Strong cash flow underpins increased returns
Strong cash flow underpins increased returns 2023 CFFO and cash flow allocation B$ 36 Working capital* Debt reduction 23 B$ Adj. net income, TotalEnergies share Downstream 9 B$ Buybacks • 19% ROACE Integrated Power of which 1.5 B$ from Canada divestment • 20% Return on Equity 16.5 + Integrated LNG 7
Slide 8: Delivering on objectives
Delivering on objectives 2023 objectives Realizations More Upstream production ~2.5 Mboe/d 2.48 Mboe/d energy Production growth(1) +2% +2% LNG production growth +9% +9% Refining utilization rate 80% 81% Renewables gross installed capacity > 22 GW 22.4 GW Electricity net renewables production ~20 TWh
Slide 9: Disciplined Capex within guidance
Disciplined Capex within guidance Integrated Power 5 B$ Maintenance Oil Oil Low-carbon energies 16.8 B$ 2023 Low-carbon molecules Maintenance Gas LNG & Gas New projects 2023 Results Capex = 18.1 B$ organic investments + 6.4 B$ acquisitions – 7.7 B$ divestments February 2024 – Results and O bjectives
Slide 10: 2023: Strong performance from all segments
2023: Strong performance from all segments Upstream Downstream LNG Start-up of Block 10 (Oman), Capture high refining Rio Grande LNG (Texas) ~ +6 GW renewables Absheron (Azerbaijan) margins entry and FID Total Eren integration Entry into GGIP (Iraq) Amiral FID (KSA) Start-up of 2 FSRU Texas: 1.5 GW
Slide 11: Sustainable low-cost portfolio
Sustainable low-cost portfolio Upstream production costs* Proved reserves life index $/boe years 15 15 Exxon Exxon 10 Shell 10 Chevron Chevron Shell BP BP 5 5 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 Permanent focus on costs 141% reserves replacement in 2023 2024 objective < 5 $/b
Slide 12: 2023 results supported by growth segments
2023 results supported by growth segments Integrated LNG Integrated Power Flexible Renewables generation LNG LNG assets & Gas trading Power Power & Gas trading marketing 2021 2023 2021 2023 Sales Mt 42 44 Production TWh 21 33 o/w Renewables TWh 7 19 CFFO B$ 5.4 7.3 CFFO B$ 0.7 2.2 NOI B$ 5.6 6.2 NOI
Slide 13: Ranking on par with US majors
Ranking on par with US majors ROACE full-year 2023 5-year Total shareholder return (TSR) % CAGR, 2019–2023 20% Exxon 19% Exxon 12.6% 10% Chevron BP Chevron Shell 10% Shell 5% BP 0% 0% Proved reserves life index* Sustainalytics rating years 25 Exxon 10 12 27.3 30 Chevron Shell BP 35 Shell 5 BP Chevro
Slide 14: Advancing the strategy, positioned for continued success
TS TotalEnergies _ Advancing the strategy, e positioned for continued success
Slide 15: TotalEnergies in a new era: stronger cash flow, low breakeven, low debt
TotalEnergies in a new era: stronger cash flow, low breakeven, low debt CFFO vs Brent Breakeven(1) Net debt(2) B$ $/boe B$ 100 30 2022 40 80 2023 20 60 30 2021 2019 40 < 25 $/boe 5% 2004–18 10 Gearing 20 20 2020 10 25 50 75 100 $/b 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2019 2020 2021 202
Slide 16: 2024 oil and LNG key market drivers
2024 oil and LNG key market drivers Oil LNG Brent Global LNG demand $/b Mt/y 120 400 +6% CAGR 2015–23 100 80 60 300 40 20 200 2019 2020 2021 2022 2023 2015 2016 2017 2018 2019 2020 2021 2022 2023 Source: S&P Global Bilateral LNG Trade data – January 2024 +1.2 Mb/d global demand in 2024 according to
Slide 17: Advancing our strategy in 2024
Advancing our strategy in 2024 2024 objectives More Upstream production 2.4–2.5 +2% ex. Canada energy Upstream production costs (ASC 932) 5 $/boe LNG Sales > 40 Mt Refining utilization rate 85% Renewables gross installed capacity 28 GW Electricity net production > 45 TWh* Less Scope 1+2 from operate
Slide 18: Disciplined capital investment supporting transition
Disciplined capital investment supporting transition Integrated Power 5 B$ Maintenance Oil Oil Low-carbon energies 17-18 B$ 2024 Low-carbon molecules Maintenance Gas LNG & Gas New projects 2024 Objectives Capex = organic investments + acquisitions - divestments February 2024 – Results and O bjective
Slide 19: Focus on project delivery to fuel mid-term growth
Focus on project delivery to fuel mid-term growth Planned FIDs for 2024 Executing safely, on time, within budget Sépia 2 Brazil Major projects 0% Progress 100% First oil Atapu 2 Brazil Mero 3 Brazil end-24 Kaminho (Block 20), op. Angola Mero 4 Brazil 2025 Block 58, op. Suriname Ballymore US 2025 Str
Slide 20: New Oil & Gas projects accretive on cash margin
New Oil & Gas projects accretive on cash margin 2024 additions Increasing cash margin Upstream CFFO/boe at 80 $/b Brent and 10 $/Mbtu TTF $/boe 23 Mero 2 Brazil Tyra Denmark Producing Start-up end-March 22 21 Anchor US SapuraOMV* Malaysia Start-up Q2 20 * Subject to closing (expected by end 1H) 2022
Slide 21: Progressing development of exploration successes
Progressing development of exploration successes Mangetti Mangetti-1X 20 km Venus-2A Venus Venus-1A Oil discovery Block 2912 Venus-1X Oil prospect Block Suriname Namibia 2913B Sapakara South + Krabdagu: targeting FID end-24 Pursuing 2-rig program 200 kb/d development under study 2023 positive result
Slide 22: Strong LNG cash flow, focus on growth projects
Strong LNG cash flow, focus on growth projects Integrated LNG CFFO B$ 0.5 B$* 6 Downstream Focus on project delivery Fueling future LNG growth 0% Progress 100% COD Mozambique LNG ~3 Mt/y equity 3 Energia Costa Azul Mexico 2025 Relaunching detailed engineering, North Field East Qatar 2026 remobilizin
Slide 23: Pursuing profitable expansion of Integrated Power
Pursuing profitable expansion of Integrated Power Renewables Gross Capacity Electricity generation CFFO GW Company share, TWh B$ 30 28 > 45* 3 2.5-3 +6 40 Flexible 20 generation 2 20 10 1 > 25 Renewables 2023 2024 2023 2024 2023 2024 ~10% ROACE in 2024 2024 Objectives * Assuming 40% flexible capacit
Slide 24: Scaling up our integrated position in Texas
Scaling up our integrated position in Texas Maximize value from power price volatility Growing and volatile market Main assets Electricity generation Company share, TWh Strong population and power demand growth Infrastructure bottlenecks 6 Significant seasonality in demand and prices Flexible genera
Slide 25: Downstream: cash and transition
Downstream: cash and transition Delivering value Transitioning profitably Growing EV in Europe Refining utilization rate SAF production % kt/y No major 90% turnaround 40 80% `x2 20 70% 85% 60% 2023 2024e 2023 2024e Mixed downstream environment Refining supported by consequences of ban on Russian cru
Slide 26: Strong free cash flow and shareholder returns
Strong free cash flow and shareholder returns On track to deliver > 100 B$ FCF over 2023-28 at 80 $/b 2024 CFFO and cash flow allocation B$ 30 Buybacks > 40% CFFO payout supported by strong balance sheet 17 B$ Free cash flow 2023 dividend growth +7%: 3.01 vs 2.81 €/share Dividend 20 Buybacks for 1Q-
Slide 27: Growing steadily shareholder distributions while deleveraging
Growing steadily shareholder distributions while deleveraging Quarterly dividend Gearing ratio Buybacks €/share Excluding leases, at year-end B$ 3 0.79 +20% 20% 1.5 B$ from Canada divestment 2 0,5 10% 1 5% 0,0 0% 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2022
Slide 28: Leading performance while transitioning
Leading performance while transitioning Total shareholder return (TSR) base 100 on 1-Jan-19 200 TotalEnergies Chevron 150 Shell BP 100 50 2019 2020 2021 2022 2023 2024 Objectives Source: Bloomberg February 2024 – Results and O bjectives | 28
Slide 29: Pioneers for 100 years
Pioneers
Slide 30: Appendix
Appendix
Slide 31: Cash flow allocation
Cash flow allocation Targeting AA credit rating 2024 +7% 17–18 B$ 5% 2 B$ for 2023 final dividend and ~33% in Low-carbon Energies Gearing at end 2023 in 1st quarter 2024 2024 interim dividends: 0.79 €/sh > 40% payout through the cycles 2024 Objectives February 2024 – Results and O bjectives | 31
Slide 32: 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
Slide 33: 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: €6,030,629,587.50 Registered in Nanterre: RCS 542 051 180 For more information go to