Totalenergies Se · EURONEXT:TTE
Totalenergies — FY2022 Earnings Presentation
32 slides from Totalenergies's earnings presentation, Feb 8, 2023
Slide 1: 2022 Results & 2023 Objectives
2022 Results &2023 Objectives Global strengths, global results February 8, 2023
Slide 2: Table of contents
2022 Results & 2023 Objectives Table of contents 03 | Safety: core value 04 | 2022: get the most out of the assets…and prepare the future…while lowering our emissions 05 | TotalEnergies entering a new era: record cash generation and deleveraged balance sheet 07 | Tailwind in each commodity business
Slide 3: Safety: core value
Safety: core value TRIR continuous improvement but 3 fatalities in 2022 per million man-hours Burkina Faso – M&S April 27, 2022 1,0 26 years old Electrocuted by an overhead medium voltage power line during a rebranding phase of a service-station 0.67 For all stations and sites with overhead power li
Slide 4: 2022: get the most out of the assets and prepare the future
2022: get the most out of the assets… Integrated LNG Oil Smart M&A 82% utilization rate +30 kboe/d, > 700 M$ CFFO in 2022 86% regas utilization rate Capturing high refining margins 48 Mt LNG sales … and prepare the future +3.5 Mt/y LNG production by 2028 Namibia, Suriname 50% acquisition – 25 GW in
Slide 5: Entering a new era: record cash generation and deleveraged balance sheet
TotalEnergies entering a new era: record cash generation and deleveraged balance sheet B$ $/b $/boe B$ 50 120 100 30 Gas surplus(2) 100 40 80 80 20 30 60 60 20 40 40 10 10 20 20 0 0 2004 2008 2012 2016 2020 2021 2022 2014 2015 2016 2017 2018 2019 2020 2021 2022 2019 2020 2021 2022 1. Before working
Slide 6: Unique match between TotalEnergies' position, execution and energy markets
2022 Unique match between TotalEnergies’ position, execution and energy markets
Slide 7: Tailwind in each commodity business
Tailwind in each commodity business Oil $/b Gas / LNG $/Mbtu 120 101 60 avg. 40 avg. 100 TTF 40 80 JKM 20 34 Brent avg. 60 40 10 6.5 avg. 20 Henry Hub 2018 2018 2019 2019 2020 2020 2021 2021 2022 2022 2023 2018 2018 2019 2019 2020 2020 2021 2021 2022 2022 2023 Refining $/t European Electricity €/MWh
Slide 8: Delivering on objectives
Delivering on objectives 2022 objectives Realizations Upstream production 2.9 Mboe/d 2.8 Mboe/d Refining utilization rate 80% 82% LNG sales 44 Mt 48 Mt Renewables gross installed capacity 16 GW 17 GW Electricity net production 27 TWh 33 TWh Scope 1+2 from operated facilities 41.8 MtCO2e 39.7 MtCO2e
Slide 9: 2022 results supported by 2 growth segments
2022 results supported by 2 growth segments Splitting iGRP into 2 new segments: Integrated LNG and Integrated Power Integrated LNG Integrated Power Flexible Renewables LNG generation LNG assets & Gas trading Power Power & Gas trading marketing Biogas and H2 2022 iLNG indicators 2022 iPower indicator
Slide 10: 2022 record results and profitability
2022 record results and profitability & IFRS net income B$ 40 40 40 IFRS net income - 14.8 Russian impairments 20 20 20 Return on Equity 20.5 IFRS net income ROACE 0 0 0 1 2 2022 Brent ($/b) 101 Av. LNG price ($/Mbtu) 15.9 NBP ($/Mbtu) 32 Eur. Ref. Margin ($/t) 94 2022 Results February 2023 — Result
Slide 11: 2022 record cash flow
2022 record cash flow Strong contribution from all segments B$ E&P cash engine: 50,000 iPower 2.7 Special dividend Record-high iLNG: Working capital 40,000 iLNG 7.0 Buybacks Downstream outperformance: 30,000 Downstream 14.5 Debt reduction Integrated Power reached 20,000 DACF Exploration & Production
Slide 12: Accelerating investment to seize opportunities in favorable markets
Accelerating investment to seize opportunities in favorable markets B$ New projects 4 B$ 15 Smart M&A: Short cycle Clearway, acceleration Brazil ToR 2022 Maintenance 10 Feb-22 guidance Organic Net acquisitions Realized 2022 Results * Capital investment = organic Capex + acquisitions – disposals Febr
Slide 13: Keeping cost inflation under control
Keeping cost inflation under control $/boe Maintenance costs +5% Deepwater drilling +2% 15 Energy costs +50% 2022 TotalEnergies’ costs contained thanks to global portfolio and contractual strategy 10 Peers Investment criteria kept unchanged 5 Profitability assessed at 50 $/b, 100 $/t CO2 Capex+Opex
Slide 14: Delivering superior results and returns while growing and transforming the Company
Delivering superior results and returns while growing and transforming the Company % % (no dividend cut in 2020) 100% 80% 98% 33.4% 75% BP Exxon 60% Chevron 50% 40% 48% 25% Shell 20% 0% 0% % 28 30% 30 25% 28.2% 30.1 20% 15% 10% 5% 0% 40 1. Net cash flow = Cash flow from operating activities – Cash f
Slide 15: 2023 Executing the strategy
TS TotalEnergies 2023 Executing the strategy
Slide 16: 2023 oil market key drivers
2023 oil market key drivers Demand Supply + China reopening and easing Impact of sanctions on Russian lockdown restrictions crude and refined products IEA 2023 global demand growth forecast at +1.9 Mb/d versus 2022 to 101.7 Mb/d, OPEC+ discipline exceeding 2019 demand at 100.6 Mb/d Headwinds for US
Slide 17: European gas driving LNG and power markets
European gas driving LNG and power markets Mt Up to Supply 450 +15 gap Up to +48 +25 ? 400 -16 410 -10 400 379 350 Mt LNG equivalent 150 67 300 100 115 130-140 LNG imports 250 50 100 44 Russian pipe Up to 20? gas imports (up to 25 bcm) 2021 2022 2023e 200 2021 Europe China Other 2022 Europe China 20
Slide 18: 2023: actively deploying our strategy
2023: actively deploying our strategy… Integrated LNG Refining & Chemicals Integrated Power (37.5%) (100% acquisition) World-class petrochemical Transaction multiple negotiated 2 FSRU in Lubmin and integrated complex in 2016 Le Havre 1.5 B$ equity investment Increasing footprint and 50% capacity boo
Slide 19: 2023 cash flow allocation priorities
2023 cash flow allocation priorities buybacks (~5% capital) 2022 financial year dividend 4 B$ in Low-carbon Energies Gearing vs 2021 special dividend for 2022 final dividend Targeting and 2023 interim dividends buybacks in 1Q23 5 B$ in Low-carbon Energies credit rating 2023 Objectives February 2023
Slide 20: Capital investment supporting the transition
Capital investment supporting the transition in Low-carbon Energies in new projects 2023 Objectives Capex = organic investments + acquisitions - asset sales February 2023 — Results and O bjectives | 20 ‘LNG Adventure’ LNG carrier
Slide 21: Increasing LNG and oil drive 2023 production growth
Increasing LNG and oil drive 2023 production growth Mboe/d 2,5 ` -8% Domestic Thailand gas Myanmar 2,0 Terneftegaz 1,5 +5% Oil Courtesy of Petrobras Brazil Oman Brazil Azerbaijan 1,0 Piped gas to proved reserves 0,5 Europe 2022 Reserves Replacement Ratio (excl. Novatek) +9% Ichthys LNG • at 2021 pri
Slide 22: Growing integrated LNG portfolio
Growing integrated LNG portfolio Benefiting from unique access to European premium market Growing LNG regas capacity in Europe Mt/y Yamal (~15% market share) 45 Spot + Mt Spot flexible 20 2 FSRU 30 Europe 10 86% Existing utilization capacity + Flexible rate (Spot index - HH) 15 Long term 2022 2023 A
Slide 23: Integrated Power: growing production and results
Integrated Power: growing production and results GW Company share, TWh B$ 30 1,5 40 20 30 1,0 > 22 Renewables 20 17 10 0,5 10 4 4 Flexible capacity 0,0 End-2022 End-2023 2022 2023 2022 2023 2023 Objectives * Before working capital variation February 2023 — Results and O bjectives | 23
Slide 24: Namibia: 300 M$ will tell the tale
Namibia: 300 M$ will tell the tale Largest* discovery worldwide in 2022: a potential new Golden Block Q1 Q2 Q3 Q4 Namibia Rig 1 Nara-1A appraisal Venus-1A appraisal Nara-1 + DST + DST Rig 2 Venus-1A Venus-1 South DST DST Africa Block 2912 37.8% op. Venus Nara-1 Venus-1A Venus-1 Block 2913B 40% op. 5
Slide 25: On track for Canadian assets spin-off
On track for Canadian assets spin-off Best way to maximize value for shareholders SpinCo Calendar Introducing a new Canadian independent E&P with growth potential (but not aligned with TotalEnergies low-carbon strategy) Vote at Annual Shareholders’ Meeting • Surmont (50%): top-tier asset, stable lon
Slide 26: Sustaining strong cash flow generation
Sustaining strong cash flow generation +1 B$ Underlying Cash Flow growth in 2023 +1 B$ B$ 100 $/b 40 Capturing oil and gas price upside 80 $/b 2023 CFFO Sensitivity 20 for +10 $/b Brent 0 for +2 $/MBtu NBP/TTF 2021 2022 2023 Brent ($/b) 71 101 80 100 NBP ($/Mbtu) 16 32 20 30 Eur. Ref. Margin ($/t) 1
Slide 27: Shared Value: Caring for our customers, caring for our people
Shared Value: Caring for our customers, caring for our people Supporting our customers Sharing value with our employees 2022 1 month's salary bonus for all (up to 6,000 €/pp) Massive fuel rebate program + gas voucher(1): > 500 M€ Salary increase taking into account inflation in each country > 65,000
Slide 28: Appendix
Appendix
Slide 29: Major Upstream projects
Major Upstream projects Capacity W.I. FID Start-up Oil projects kboe/d date Mero 2-3-4 Brazil 3x 180 19.3% 2019-21 2023-25 Anchor USA 75 37.1% 2019 2024 Begonia Angola 30 30% op. 2022 2024 Lake Albert Uganda-Tanz. 230 56.7% op. 2022 2025 Tyra re-development Ballymore USA 75 40% 2022 2025 Cameia-Golf
Slide 30: Major Integrated Power projects
Major Integrated Power projects Capacity W.I. FID COD Solar projects Gross MW net date Myrtle USA 380 100% 2021 2023 Daggett Solar (Clearway) USA 627 11% 2021 2023 Danish Fields USA 720 100% 2021 2024 Seagreen Hill Solar 1 USA 520 100% 2022 2024 West of Orkney Outer Dowsing MFG Phase 1 (AGEL) India
Slide 31: Adjustment items and definitions
These adjustment items include: 1. Special items Due to their unusual nature or particular significance, certain transactions qualified as “special items” are excluded from the business segment figures. In general, special items relate to transactions that are significant, infrequent or unusual. How
Slide 32: 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: €6,547,828,212.50 Registered in Nanterre: RCS 542 051 180 For more information go to