Imperial Oil Limited · TSX:IMO
Imperial Oil — Shareholder Meeting (May 2020)
31 slides from Imperial Oil's shareholder meeting presentation, May 5, 2020
Slide 1: Imperial Annual Meeting of Shareholders
Exhibit 99.1 Imperial Annual Meeting of Shareholders May 1
Slide 2: Cautionary statement
Imperial 2020 2 Cautionary statement Statements of future events or conditions in this presentation, 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,
Slide 3: Meeting proceedings
Imperial 2020 3 Meeting proceedings Brad Corson Ian Laing Chairman, President and CEO Corporate Secretary
Slide 4: Election of Auditor
Imperial 2020 4 Election of Auditor PricewaterhouseCoopers LLP
Slide 5: Election of directors
Imperial 2020 5 Election of directors David Brownell David Cornhill Brad Corson Krystyna Hoeg Miranda Hubbs Jack Mintz David Sutherland
Slide 6: Chairman's remarks
Imperial 2020 6 Chairman’s remarks Brad Corson Chairman, President and CEO
Slide 7: Imperial's COVID-19 response
Imperial 2020 7 Imperial’s COVID-19 response The health and safety of our workforce and our communities is our top priority Continued operations to ensure supply of energy to Canadians Enhanced cleaning, health screening and PPE at our work sites Minimizing non-essential on-site personnel to support
Slide 8: Near-term view - current issues
Imperial 2020 8 Near-term view –current issues Unprecedented demand reduction due to COVID-19 Near-term global energy demand has decreased dramatically Estimates evolving and are highly uncertain Significant oil price decline Driven by OPEC+ actions and COVID-19 demand destruction Price rec
Slide 9: Near-term view - Imperial's response
Imperial 2020 9 Near-term view -Imperial’s response Business-critical work continues to ensure essential supply of energy $500 million reduction in capital spending Primarily through adjusted pacing of work $500 million reduction in operating expenses Adjusting turnaround scopes, other efficie
Slide 10: The importance of energy
Imperial 2020 10 The importance of energy Petroleum products support essential services, produce critical supplies Transportation and power generation  Critical to keeping supply chains moving Fuel for emergency vehicles first responders rely on Power generation to keep economy running Petr
Slide 11: Energy and society
Imperial â”,2020 â”,11 Energy and society New Production Required Access to safe, affordable, reliable and abundant energy critical to human developmentSource:2018 U.N. Human Development Reports,2019World Bank DataBank; ExxonMobil analyses Energy demand per capita (1000 BTU/person/day)Human developm
Slide 12: ESG performance of global reserve holders
Imperial â”,2020 â”,12 miningin situ Canada sets the standard among top global reserves holders Yale index -Environmental020406080100CanadaUSVenezuelaRussiaKuwaitUAEIranSaudi Arabia Libya Iraq ïµJoint report by Yale and Columbia universities ïµRanks 180 countries on 24 performance parameters02040608
Slide 13: ESG at Imperial
Imperial â”,2020 â”,13 ESG at Imperial New Sustainability Report outlines Imperial’s commitment to responsible growthïµ Environmental Reduced GHG emissions intensity (GHGi) in operated oil sands by more than 20% over the past six years Target to reduce GHGi by additional 10% by 2023 compared t
Slide 14: Imperial's operations
Imperial â”,2020 â”,14 Imperial’s operations High quality, integrated, balanced, coast-to-coast asset portfolio Syncrude mining Kearl mining Cold Lake in situ Rail terminal F&L marketing Strathcona refinery Sarnia chemical Sarnia refinery Nanticoke refinery Research Distribution network Upstream pro
Slide 15: Imperial's business model
Imperial â”,2020 â”,15 Imperial’s business model Deliver superior, long-term shareholder value ï,¡Long-life, competitively advantaged assets ï,¡Disciplined investment and cost management ï,¡Value chain integration and synergies ï,¡High-impact technologies and innovationï,¡ Operational excellence and
Slide 16: Safety performance
Imperial â”,2020 â”,16 Safety performance5-year average incident rate Industry-leading performance and commitment to ‘Nobody gets hurt’*2014-2018 Total Recordable Incident Rate = Incidents per 200,000 hours worked Source: company reports Rate*0.000.200.400.600.80HSECNQCVESUIMO2019
Slide 17: 2019 results
Imperial â”, 2020 â”, 17 2019 results Focus on strengthening performance and returning value to shareholders$2,200 million Net income$4,429 million Cash from operations$2,004 million Returned to shareholders353,000 bpd Refinery throughput475,000 bpd Petroleum product sales398,000 boepd Upstream prod
Slide 18: Upstream assets
Imperial â”,2020 â”,18 Upstream assets High-quality resource base with over 25-year proved reserves life Production Kearl Mining -PFT71% interest Syncrude Mining -Upgrader25% interest Cold Lake In situ –CSS/other100% interest koebd Proved reserve life based on 2019 production Production through 2019
Slide 19: Kearl performance
Imperial â”,2020 â”,19ïµ Successfully commissioned 2 new crushers Record first quarter production of 226 KBD March production of 248 KBDïµ Addresses key area of reliability Significant mitigation of Q1 downtimeïµ Capital efficient production growth Expect US $4 per barrel expense reducti
Slide 20: Downstream assets
Imperial â”,2020 â”,20 2009201420190100200300400500Downstream assets Canada’s largest refiner and petroleum product marketer Volumes Strathcona refinery191 kbd capacity Sarnia refinery119 kbd capacity Nanticoke refinery113 kbd capacity Fuels marketing Coast-to-coast product sales Refinery throughput
Slide 21: Downstream strength
Imperial â”,2020 â”,21 ïµHigh-performing refineries ïµAdvantaged crude and attractive markets ïµMarket-leading scale and integration Downstream strength Positioned for continued industry-leading performance ïµStrong brands and loyalty ïµHigh-value sales growth ïµRobust cash flow
Slide 22: Chemical
Imperial â”,2020 â”,22 ïµCost-advantaged feedstocks ïµHigh-value specialty resins ïµWell located to access customers ïµAdded global capacity impacting marginsFeedstock0501002017-19 Other Marcellus ethane Refinery off gas % Chemical Integrated petrochemical site produces high-value products used in e
Slide 23: Technology and innovation
Imperial â”,2020 â”,23 ïµSignificant research and development program ïµTwo research centers in Canada ïµAbility to leverage ExxonMobil ïµExtensive lab and field testing ïµNext-generation commercial technologies Technology and innovation Unparalleled commitment and achievement throughout 140-year hi
Slide 24: Digital transformation
Imperial â”,2020 â”,24 ïµDigital foundation established 2017-2019ïµInvesting in a portfolio of opportunitiesïµ Autonomous haul program ramping upïµ>$500 million of additional value potential Digital transformation Productivity enhancement across the portfolio GPS RADAR Laser sensor GPS Radar 3D sens
Slide 25: Growing value
Imperial â”,2020 â”,25 Growing value Improving performance and resiliency in lower price environments Downstream & Chemical Upstream Annual cash from operations $BWTI, US$/Bbl01020304050607001234520152016201720182019Cash Flow WTI
Slide 26: Financial strength
Imperial â”,2020 â”,26 CNQCVESUHSEIMO020401.Maintain strong balance sheet2.Pay reliable and growing dividend3.Invest in high value projects4.Return surplus cash to shareholders Financial strength Strong balance sheet, optionality and access to financial markets December 31, 2019 debt to capital Rati
Slide 27: Shareholder returns
Imperial â”,2020 â”,27 Shareholder returns Long-standing priority to return cash to shareholders Dividend per share Paid basis$0.000.200.400.600.801.00200920142019600650700750800850900Year-end2016201720182019Year-end2019Shares outstanding millions
Slide 28: Why Imperial
Imperial â”,2020 â”,28 Why Imperial Distinct competitive advantages that deliver long-term shareholder value140 year Canadian history with exceptional people and expertise High-quality upstream assets with significant growth potential Advantaged downstream assets with strong ongoing performance Syne
Slide 29: Q&A
Imperial Q&A
Slide 30: Scrutineers' report
Imperial â”,2020 â”,30 Scrutineers’ report Ian Laing Corporate Secretary
Slide 31: Annual Meeting of Shareholders
Annual Meeting of Shareholders May 1