Exxon Mobil Corporation · NYSE:XOM
Exxon Mobil — Proxy Contest (May 2021)
25 slides from Exxon Mobil's proxy contest presentation, May 19, 2021
Slide 1: Growing Shareholder Value in a Lower-Carbon Future: Summary
GROWING SHAREHOLDER VALUE IN A LOWER-CARBON FUTURE: SUMMARY May 2021GROWING SHAREHOLDER VALUE IN A LOWER-CARBON FUTURE: SUMMARY May 2021
Slide 2: Cautionary statement
Cautionary statement FORWARD-LOOKING STATEMENTS. Outlooks; projections; goals; estimates; discussions of earnings, cash flow, and margins; descriptions of strategic plans and objectives; planned capital and cash operating expense reductions and the ability to meet or exceed announced reduction objec
Slide 3: ExxonMobil has right strategy and financial plan for shareholders
ExxonMobil has right strategy and financial plan for shareholders Uniquely positioned to sustainably meet the world’s energy needs in a lower-carbon future 1 • Invest in low-carbon to expand opportunities in energy’s long-term future – Low Carbon Solutions business will help address society’s ambiti
Slide 4: ExxonMobil's Board is committed to strong oversight
ExxonMobil’s Board is committed to strong oversight Engine No. 1 has not put forward any new ideas and does not have a plan to create value 3 • Our Board has played an important role in overseeing our strategy and has continually refreshed Led by strong, itself with relevant expertise to support the
Slide 5: IPCC expects a diverse energy mix in achieving 2°C
IPCC expects a diverse energy mix in achieving 2°C Multiple potential pathways to 2°C lead to wide range of projections 2040 ENERGY MIX IN IPCC LOWER 2°C SCENARIOS Quadrillion BTUs (Quads) High IPCC 2040 Wind/Solar Lower 2°C energy demand Bioenergy • Substantial efficiency gains range 19% Low-carbon
Slide 6: ExxonMobil developing technologies to reduce emissions
ExxonMobil developing technologies to reduce emissions Available alternatives do not fully meet needs of hard-to-decarbonize sectors, requiring innovation EXXONMOBIL FOCUS ON SOLUTIONS FOR IPCC 2040 DEMAND ACTIONS TODAY TOMORROW Oil and Gas Wind • Providing natural gas to Coal POWER replace coal• Fu
Slide 7: Pursuing low-carbon opportunities with large addressable markets
Pursuing low-carbon opportunities with large addressable markets Leveraging core skills and existing assets to capture markets with strongest fit and high growth 2040 MARKET SIZE, GROWTH, AND FIT WITH EXXONMOBIL COMPETENCIES Trillion USD 1 Total Addressable Market: 2040 1 Size = Total Addressable Ma
Slide 8: Uniquely positioned to succeed in carbon capture
Uniquely positioned to succeed in carbon capture Leveraging position as the global CCS leader in a ~$2 trillion addressable market by 2040 1 CUMULATIVE CO CAPTURE VOLUME SINCE 1970 2 • Leverages history and experience at scale Million tonnes 1 − #1 in the world for CO capture; 9 Mta capacity 2 2 − #
Slide 9: Reducing emissions consistent with the goals of Paris
Reducing emissions consistent with the goals of Paris ExxonMobil’s plan to 2025 consistent with 2°C pathway, while NDCs fall short 1,2,3 EXXONMOBIL AND SOCIETY’S EMISSIONS Percent reduction versus 2016 1 Society’s emissions Paris submissions by signatory nations result in societal emissions that are
Slide 10: Significant investment required to meet oil and gas demand
Significant investment required to meet oil and gas demand 1 IEA forecasts incremental $12 trillion investment in oil and gas needed in its <2°C scenario “Sharp spending cuts and project delays are already constraining supply growth across the globe… In the absence of stronger policy action, global
Slide 11: Industry-leading Upstream resource investment portfolio
Industry-leading Upstream resource investment portfolio 1 Capital program prioritizes low cost-of-supply opportunities that generate >10% returns at ≤$35/bbl 1 UPSTREAM RESOURCE INVESTMENTS Brent $/bbl required to generate the cost-of-supply plus 10% return $45 Developing projects at less than $40/b
Slide 12: Developing the world's most attractive upstream portfolio
Developing the world’s most attractive upstream portfolio Projects deliver industry-leading returns and outsized value according to Wood Mackenzie WOOD MACKENZIE UPSTREAM PORTFOLIO COST-OF-SUPPLY AND RETURNS 1 Size = NPV10 Projects in ExxonMobil’s Current Portfolio MOST ATTRACTIVE 60% ExxonMobil’s n
Slide 13: Delivered ~$3 billion of structural cost reductions in 2020
Delivered ~$3 billion of structural cost reductions in 2020 Value chain restructuring enabled accelerated efficiency capture; additional $3 billion by 2023 ORGANIZATIONAL RESTRUCTURING DRIVING EFFICIENCIES Organizational restructuring – end to end oversight for each business unit, efficiencies Captu
Slide 14: Investments drive strong earnings growth
Investments drive strong earnings growth Cost reductions and advantaged investments enhance earnings power across a range of prices / margins 1,2 EARNINGS GROWTH $55/bbl real Brent Billion USD and 10yr high • Delivering structural cash Opex reductions across Downstream and Chemical margins the corpo
Slide 15: Board driving strategic change in transitioning market
Board driving strategic change in transitioning market Consistently refreshed to have the skillsets needed to guide the business through challenging cycles Board Oversight Focus Areas 2017 2018 2019 2020 2021 Annual Strategy Review Annual Energy Outlook Corporate Annual Corporate plan and budget app
Slide 16: Shareholder engagement informs board actions
Shareholder engagement informs board actions Have continued to adopt best practices in ESG, responding to shareholder input Shareholder Feedback Actions Taken Results • Since 2016 we have published an Energy and Carbon • Increases transparency on climate initiatives and alignment Summary and enhance
Slide 17: Recent additions deepen board expertise and perspective
Recent additions deepen board expertise and perspective Additional experience in energy, capital allocation, investor perspective, climate and transition Wan Zulkiflee Michael J. Angelakis Jeffrey W. Ubben Appointed Jan 2021 Appointed Mar 2021 Appointed Mar 2021 Former President & CEO, Former CFO, C
Slide 18: Vote the Blue Card
Vote the Blue Card ü ü ü ü ü ü ü ü ü ü 18Vote the Blue Card ü ü ü ü ü ü ü ü ü ü 18
Slide 19: Supplemental Information
Supplemental Information 19Supplemental Information 19
Slide 20: Supplemental information: forward-looking statements assumptions
Supplemental information IMPORTANT INFORMATION AND ASSUMPTIONS REGARDING CERTAIN FORWARD-LOOKING STATEMENTS. Forward-looking statements contained in this presentation regarding the potential for future earnings, cash flow, margins, ROCE, returns, addressable markets, and cash operating expenses are
Slide 21: Supplemental information: Non-GAAP and other measures
Supplemental information NON-GAAP AND OTHER MEASURES. With respect to historical periods, reconciliation information is provided in the Frequently Used Terms available on the Investor page of our website at www.exxonmobil.com under the heading News & Resources for certain terms used in this presenta
Slide 22: Definitions and non-GAAP financial measure reconciliations, continued
Supplemental information DEFINITIONS AND NON-GAAP FINANCIAL MEASURE RECONCILIATIONS, CONTINUED Return on average capital employed (ROCE). ROCE is a performance measure ratio. From the perspective of the business segments, ROCE is annual business segment earnings divided by average business segment c
Slide 23: Supplemental information: Other information
Supplemental information OTHER INFORMATION. All references to production rates, project capacity, resource size, and acreage are on a gross basis, unless otherwise noted. This presentation includes a number of third party scenarios such as the 74 Lower 2°C scenarios, made available through the IPCC
Slide 24: Supplemental information: footnotes
Supplemental information Slide 3 Slide 9 1) Through periods ending 4/15/2021 1) Global CO2 emissions: Global Carbon Budget 2020; Friedlingstein et al (2020); 2) Based on company filings and EM analysis of publicly available information including energy-related and cement processing CO2 emissions. 3)
Slide 25: Important Additional Information Regarding Proxy Solicitation
Important Additional Information Regarding Proxy Solicitation Exxon Mobil Corporation (“ExxonMobil”) has filed a definitive proxy statement and form of associated BLUE proxy card with the U.S. Securities and Exchange Commission (the “SEC”) in connection with the solicitation of proxies for ExxonMobi