Imperial Oil Limited · TSX:IMO
Imperial Oil — Investor Day (May 2011)
100 slides from Imperial Oil's investor day presentation, May 26, 2011
Slide 1: Imperial Oil – Sustained Energy Leadership
Imperial Oil – Sustained Energy Leadership Welcome Toronto May 26, 2011
Slide 2: Agenda
Agenda 9 am 10:45 - 11:30 Welcome Imperial Oil – Sustained Energy Leadership Upstream Downstream and Chemical Finance Summary remarks and Q&A Mark Stumpf Manager, investor relations/planning & analysis Bruce March Chairman, president and chief executive officer Glenn Scott Senior vice-president reso
Slide 3: Cautionary Statement
Cautionary Statement This presentation contains forward -looking information on future production, project start-ups and future capital spending. Actual results could differ materially due to changes in project schedules, operating performance, demand for oil and gas, commercial negotiations or othe
Slide 4: Our Business
Imperial Oil – 2011 Investor Meeting Our Business
Slide 5: 2010 results
2010 results Industry leading safety Double digit returns in each business segment Long history of excellent safety performance Sound environmental results Strong bottom -line Earnings: $2.2 billion Return on capital employed: 21% Cash flow from operations: $3.4 billion Investing through the cycle o
Slide 6: Safety leadership
Safety leadership Nobody Gets Hurt Lost time incident rate incidents per 200k hours employee contractor 0.50 0.40 0.30 0.20 0.10 0.00 Downstream industry benchmark* Upstream industry benchmark** `05 `06 `07 `08 ‘09 ‘10 * Canadian Petroleum Products Institute (2010 data not available) ** Canadian Ass
Slide 7: Environmental business planning
Environmental business planning Protect Tomorrow. Today. Rigorous environmental planning and stewardship Actions Conserve: Energy efficiency Reduce: Fresh water use Spills and releases Flaring & emissions Land-use footprint Reclaim & reuse: Return to productive use
Slide 8: Environmental performance
Environmental performance Upstream solution gas flaring intensity less than half of the next lowest operator Hydrocarbon flaring mcf/d 4 3 2 1 0 2006 2007 2008 2009 2010 Upstream Downstream and Chemical Operational excellence Industry leading performance across all business units and sites Rigorous
Slide 9: Earnings
Earnings Continued strong performance across all businesses Net income per share (diluted basis) $ / share 4 3 2 1 0 2006 2007 2008 2009 2010 Focus on operational excellence Relentless operating expense control Capitalizing on competitively advantaged asset base Upstream Downstream Chemicals
Slide 10: Superior ROCE
Superior ROCE Sustained industry -leading return on capital employed Return on capital employed % 50 40 30 20 10 0 2006 2007 2008 2009 2010 source: Bloomberg IMO HSE CVE CNQ SU Strength of asset base Focus on extracting maximum value from each asset Disciplined investment 2010 ROCE > 30% ex Kearl as
Slide 11: ROCE strong in all business lines
ROCE strong in all business lines ROCE target: double digit returns in all business segments year average ROCE 60% 40% 20% 0% Chemical Upstream Downstream 0 1 2 3 4 5 6 7 8 9 10 year average capital employed – billion $
Slide 12: Superior shareholder returns
Superior shareholder returns Providing superior long-term returns to shareholders Toronto Stock Exchange % 20 15 10 5 0 year 10 year 20 year source: Bloomberg,TMX—10 and 20 year annualized returns to December 31, 2010, 5 year to February 28, 2011 IMO S&P/TSX Energy Index S&P/TSX Composite Index
Slide 13: Imperial Oil – energy for years
Imperial Oil – energy for 130 years Leading the development of energy in Canada 69.6% owned by ExxonMobil Competitive advantages Discipline and consistency Portfolio quality Organizational capability Superior technology Balance sheet strength
Slide 14: Proven business model
Proven business model Leading the development of energy in Canada with a business model that is proven to deliver throughout the business cycle Disciplined Investment ExcellenceOperational Industry -Leading Returns - Impact HighTechnologies Growth in Shareholder Value Flawless execution Grow profita
Slide 15: Coast to coast to coast
Coast to coast to coast An integrated company providing energy products and innovation in North America Beaufort Taglu Norman Wells Horn River Kearl Athabasca Syncrude Strathcona Tight oil Cold Lake Dartmouth Sable Sarnia Nanticoke exploration major upstream production development fuels & lubes mark
Slide 16: Leveraging the ExxonMobil relationship
Leveraging the ExxonMobil relationship Only publicly traded company in Canada with this level and depth of global support Strategic alignment Management systems honed worldwide Superior project management Best practices transfer Training and development World scale operations
Slide 17: Leveraging the ExxonMobil relationship
Leveraging the ExxonMobil relationship Access to $1 billion per year in research and development Shared leading edge technology Fundamental research Scale-up to commercial Across all business segments
Slide 18: Business fundamentals
Business fundamentals Imperial Oil is positioned to prosper Growing world population; strong GDP growth in developed and developing nations Long-term demand forecasts for oil, gas and petrochemicals remain robust Energy demand up with economic activity, strongly mitigated by efficiency Continued str
Slide 19: Global energy demand to 2030
Global energy demand to 2030 Technical advances in efficiency and renewables critical, yet oil and gas will continue to supply about 60% of the world’s energy needs Primary energy Quadrillion BTUs 700 600 500 400 300 200 100 0 1980 2005 2030 Renewables Nuclear Coal Gas Oil Economic90 progress drivin
Slide 20: Global liquids supply / demand
Global liquids supply / demand Investing in opportunities to supply Canada and the world’s energy needs mb/d Significant new production required to offset field decline Need for supply from many new sources, including oil sands International Energy Agency – World Energy Outlook 2010
Slide 21: North America energy demand & supply
North America energy demand & supply While demand for refined products may have peaked, the requirements for gas to generate electricity grow Total by fuel Quadrillion BTUs 120 100 80 60 40 20 0 1980 2005 2030 Renewables Biomass Nuclear Coal Gas Oil Total by sector Quadrillion BTUs 120 100 80 60 40
Slide 22: e GHG intensive power generation to renewable forms later in the century
e GHG intensive power generation to renewable forms later in the century
Slide 23: U.S. demand for energy
U.S. demand for energy Canada is by far the largest supplier of energy to the U.S.; liquids exports from Canada to U.S. expected to grow Top countries—USA energy imports Quadrillion BTUs 6 4 2 0 Coal Electricity Natural gas Products Crude 2009, U.S. Energy Information Agency, net by commodity and co
Slide 24: Canada – attractive investment climate
Canada – attractive investment climate Canada remains an excellent jurisdiction to do business Positive attributes Stable democracy Encourages resource development Welcomes private investment Adept regulators Challenges remain Regional inflation Labour availability
Slide 25: Industry Risks
Industry Risks The energy industry faces multiple uncertainties and risks. Well developed processes, procedures and people are required to manage risks
Slide 26: Risk management approach
Risk management approach Common expectations for addressing risk inherent in our business Capable, committed workforce with clear accountabilities Well developed and clearly defined policies and procedures High standards of design to reduce or eliminate risk Employee and contractor training Systemat
Slide 27: Risk management approach
Risk management approach Imperial Oil employs multiple management systems to lower risk across the businesses, forming a foundation for strong financial and operating results Operations Integrity Management System Facilities Integrity Management System Controls Integrity Management System ExxonMobil
Slide 28: Responsible resource development
Responsible resource development Imperial Oil continues to be at the forefront, working with stakeholders on public policy, continually improving operations and investing in technology reclamation at Syncrude air emissions cogeneration
Slide 29: Oil sands – responsible development
Oil sands – responsible development Proven gains in water use efficiency at Cold Lake, committed to a further 30% improvement fresh water to bitumen ratio 5.0 4.0 3.0 2.0 1.0 0.0 1975 1980 1985 1990 1995 2000 2005 2010 Cold Lake water use Water Volume (m3/d) 80,000 60,000 40,000 20,000 Total Fresh W
Slide 30: Oil sands – responsible development
Oil sands – responsible development Kearl – the next generation of technology Technology/approach Proprietary paraffinic froth treatment Compensation lakes Cogeneration Progressive reclamation Water storage on site Impact on environment Reduce GHGs: process bitumen once instead of twice in an upgrad
Slide 31: Oil sands – responsible development
Oil sands – responsible development Cold Lake Nabiye – building on technology expertise Latest well pad design to minimize footprint Adding cogeneration capacity to reduce GHG emission intensity Applying the latest in improved sulphur removal technology
Slide 32: Oil sands – responsible development
Oil sands – responsible development Latest technologies—Greenhouse gas emissions on par with the average of all crudes refined in the U.S. Wells-to-wheels greenhouse gas emissions Canadian oil sands: mined dilbit Average US barrel consumed California heavy oil Nigerian light crude Canadian heavy Ven
Slide 33: Oil sands – research and development
Oil sands – research and development At our Calgary Research Centre, scientists’ work is focused on extraction efficiency while minimizing environmental impacts In-situ processes Non-aqueous extraction Centre for Oil Sands Innovation at University of Alberta Game changing technology focus Industry c
Slide 34: Non-aqueous extraction
Non-aqueous extraction A potential game-changer, non-aqueous extraction would virtually eliminate the need for water and tailings ponds Oil Sands Bitumen Solid Agglomerates
Slide 35: Public advocacy – oil sands development
Public advocacy – oil sands development Balance economic, social and environmental aspects Ensure all perspectives are heard and science is front and centre Leadership position in CAPP CAPP pan-continental communication plan Legislators, regulators, academia, community leaders CAPP Roundtables Commu
Slide 36: Imperial strengths
Imperial strengths Underpinned by superior technology, financial strength and a long-term focus industry leadership through the business cycle Discipline and consistency Portfolio quality Integration and capability Embarking on a growth strategy
Slide 37: Upstream – Doubling Production
Imperial Oil – 2011 Investor Meeting Upstream – Doubling Production
Slide 38: Upstream business
Imperial Oil Upstream business Operational excellence and continued growth in oil sands in the medium term and natural gas in the longer term 2010 Results Earnings ROCE Production* Oil production* Oil sands production* Capex $1.7 billion 21% 294 kboed 247 kbd 217 kbd $3.8 billion
Slide 39: Upstream assets
Upstream assets Premier producing assets, exciting development opportunities and potentially large exploration plays Beaufort Taglu Norman Wells Horn River Syncrude Tight oil Kearl Athabasca Cold Lake exploration key production development Sable
Slide 40: Upstream strategy
Imperial Oil Upstream strategy Apply technology to find and responsibly development and operate advantaged oil and gas resources in Canada Identify and selectively capture the highest -quality exploration opportunities Invest in projects that deliver superior returns Maximize profitability of existi
Slide 41: Operational excellence
Operational excellence Focus on execution excellence leads to industry leading safety, environmental performance and reliability year average production % of capacity Cold Lake MacKay River Foster Creek Christina Lake Primrose/Wolf Lake Peace River Surmont Jackfish Firebag Orion Long Lake Tucker 0%
Slide 42: Oil sands – an accessible resource
an accessible resource Oil sands – an attractive opportunity for investment Canada’s oil sands – World oil resource billion barrels 300 250 200 150 100 50 0 Canada’s Oil Sands Rest of World 52% 48% Source: Oil & Gas Journal Ar i uda S
Slide 43: Imperial Oil – over years of oil sands experience
Imperial Oil – over 40 years of oil sands experience Imperial Oil continues to pioneer oil sands development
Slide 44: Oil sands – in-situ and mining
Oil sands – in-situ and mining Oil sands have been a major part of production volumes Imperial’s oil sands production* kbd 200 150 100 50 0 Syncrude Cold Lake 1980 1990 2000 2010 Patented in-situ recovery technology in 1960’s In-situ pilots led to commercial development of Cold Lake Original owner o
Slide 45: Added proved reserves
Added proved reserves Organic growth driving proved reserves growth Equivalent to almost 25 years of current production Billions oil equivalent barrels 2000 2010 additions production * Imperial Oil interest after royalties 2010 reserves 33% higher than 2000 Added 1.7 billion boe of proved reserves I
Slide 46: Added non-proved resource
Added non-proved resource Non-proved resource – over 120 years of production coverage Billions oil equivalent barrels 14 12 10 8 6 4 2 0 additions proved to converted 2000 2010 2010 resource over 40% higher than 2000 through organic growth Added 5.5 billion boe of new resource Exploration Delineatio
Slide 47: High quality portfolio
High quality portfolio Development opportunities position us well for decades to come Proven Reserves / Non-proved Resource* billion oil equivalent barrels 14 12 10 8 6 4 2 0 mineable oil sands in-situ heavy oil conventional, incl. frontier 2010 proved 2010 non-proved * after royalties mineable oil
Slide 48: Adding to the resource base
Adding to the resource base Employing latest technology to find large, high quality resource opportunities Over 500,000 acres added in the past 4 years at advantaged prices Leveraged financial strength during market down-turn Includes: Over 170,000 acres in the Horn River Oil sands land Shale gas an
Slide 49: Oil sands and gas resources drive production growth
Oil sands and gas resources drive production growth With a 40% growth in oil sands production by 2013, Imperial is well positioned to more than double Upstream production by 2020 Production Outlook* kboed* 600 400 200 0 oil sands conventional new gas oil sands conventional 2010 2013 2020 * Imperial
Slide 50: Highly oil weighted
Highly oil weighted Oil weighting to grow as oil sands developments come on stream Production* % 100 75 50 25 0 Gas Oil 2000 2005 2010 2015 * Imperial Oil interest before royalties
Slide 51: Cold Lake – a premier in-situ asset
Cold Lake – a premier in-situ asset With over 1 billion barrels already produced, Cold Lake is poised for another expansion and sustained production for decades to come Cold Lake production* kbd 200 160 120 80 40 0 Pilots Maskwa Mahihkan Mahkeses Nabiye Long-life, highly profitable, 100% interest Te
Slide 52: In-situ recovery enhancement
In-situ recovery enhancement Technology key to unlocking, sustaining and building in-situ production Demonstrated recovery (%) at Cold Lake 60 50 40 30 20 10 0 1977 1987 1997 2007-2012 2020+ In-situ recovery enhancements Late life cycle technologies Liquid Addition to Steam for Enhanced Recovery (LA
Slide 53: LASER
LASER Liquid Addition to Steam for Enhanced Recovery now commercialized Improved recovery Produced Oil Cumulative LASER CSS 2 3 4 5 Years Gain Diluent injected with steam Enhances recovery in later cycle wells cycle improvement: About 35% increase in recovered oil Approximately 25% GHG reduction
Slide 54: Next generation technologies
Next generation technologies Pilot facilities installed and operating in Cold Lake to test three new recovery techniques Steam Flood CSP (Cyclic Solvent Process) existing CSS wells become producers only new steam infill injectors SA-SAGD (Solvent -Assisted SAGD)
Slide 55: Nabiye expansion at Cold Lake
Nabiye expansion at Cold Lake Using a proven staged development model, Nabiye is the next phase of growth at Cold Lake: + 30 kbd Nabiye Mineral Lease Approved Development Area Developed Pads Near Term Development
Slide 56: Syncrude – a premier mining asset
Syncrude – a premier mining asset Long-life asset with further potential IOL share production* kbd 80 60 40 20 0 2000 2002 2004 2006 2008 2010 Mining / upgrading joint venture 25% Imperial ownership Largest oil sands facility in the world 10% of Canada’s oil production Leadership and management serv
Slide 57: Kearl – a premier oil sands asset
Kearl – a premier oil sands asset High-quality oil sands resource coupled with proprietary technology and world-class execution capability provide long-life earnings contribution ore grade (%) 12.5 Increasing Mining Efficiency 12.0 Ore superior projects 11.5 Quality 11.0 Increasing 10.5 10.0 12 11 1
Slide 58: Kearl Initial Development
Kearl Initial Development The initial development is on schedule for start-up in late 2012 Control Extraction Utilities Building South Tank Farm North Tank Farm Froth Treatment Over 65% complete Detailed design and procurement complete Fabrication 85% Construction about 50% complete
Slide 59: Kearl – Initial Development + Expansion
Kearl 345 kbd – Initial Development + Expansion Design one, build many development plan Kearl Development Plan kbd 400 300 200 100 0 Regulatory Approval @ 345 kbd Expansion Initial Development Reconfigured from 3 phases to Initial Development and Expansion Incorporates Alberta’s Directive 74 issued
Slide 60: Long-life asset
Long -life asset High quality oil sands project with low unit development cost Kearl Comparison kbd 300 GOM Deepwater 200 100 0 Expansion Initial Development Revenue Components at 2010 Oil Price $ per OEB Earnings / Government Take Bitumen Discount Operating Cost Development Kearl Earnings / Governm
Slide 61: Unconventional shale gas
Unconventional shale gas Horn River area, British Columbia With ExxonMobil, large position at 340,000 net acres Imperial Oil / ExxonMobil
Slide 62: Horn River production pilot
Horn River production pilot Field work underway to optimize productivity and cost structure Objective: establish full field business case Demonstrate well productivity Provide cost confidence Assess well spacing Scope Central pad with 8 multi-frac wells Pipeline to third party infrastructure Start-u
Slide 63: Mackenzie gas project
Mackenzie gas project Objective – a commercially sound project National Energy Board approval a key milestone Fiscal discussions with federal government pending Imperial Oil, Taglu S A U Norman Wells Northwest Territories Alberta the project: 6 TCF natural gas, onshore from three fields (Imperial Oi
Slide 64: Western Canada tight oil potential
Western Canada tight oil potential Potential for material position Large legacy land position in the Western Canada Basin Multiple plays exist over IOL lands Industry active Particularly Cardium Play Horizontal multi-stage frac technology key to opening tight oil plays in historically active areas
Slide 65: Beaufort Sea
Beaufort Sea Large, highly prospective opportunity Cross-conveyed ExxonMobil, Imperial and BP positions – ExxonMobil operator Participating in NEB Arctic drilling regulations process Technical evaluations ongoing
Slide 66: Additional Athabasca acreage for 2020+
Additional Athabasca acreage for 2020+ Exciting mining and in-situ opportunities—next generation of advantaged production Almost 250,000 acres Various interests
Slide 67: Downstream and Chemical
Imperial Oil – 2011 Investor Meeting Downstream and Chemical
Slide 68: 2010 highlights
2010 highlights Strong results in a challenging market Strong financial performance Earnings ROCE Refinery throughput Net petroleum product sales $0.4 billion 13 % 444 kbd 442 kbd Focus on operational excellence Maintaining capital discipline Results underpinned by technology, efficiency, integratio
Slide 69: Leader in refining, marketing, and chemicals
Leader in refining, marketing, and chemicals Strong businesses in every segment Refining & conversion capacity—#1 Fuels marketing – #2 Finished lube oil—#1 Solvents—#1 Asphalt—#1 Rotational molding polyethylene—#1 Dartmouth Strathcona Nanticoke Sarnia downstream retail / distribution refinery lube b
Slide 70: Downstream & Chemical industry environment
Downstream & Chemical industry environment Global demand steadily rising driven by developing countries; demand for refined products in North America flat to down Global Product growth averages about 1% per year through 2030 Diesel demand growing, gasoline demand slowing Specialty chemicals growth c
Slide 71: Downstream and Chemical strategies
Downstream and Chemical strategies A culture of continuous improvement through Self-Help drives superior results Relentless focus on best-in-class operations Provide valued and high quality products and services to our customers Lead industry in efficiency and effectiveness Capitalize on integration
Slide 72: North American refining capacity
North American refining capacity Business environment continues to be challenging Capacity utilization currently the same as the early ‘90’s
Slide 73: Leading Canadian refining capacity
Leading Canadian refining capacity Value creation out of every barrel of crude oil Refining capacity (kbd) Husky Suncor Imperial Oil conversion capacity* crude capacity 0 100 200 300 400 500 Largest refining and conversion capacity in Canada Conversion capacity grown 17% since 1998 Advantaged integr
Slide 74: Refining Self-Help
Refining Self-Help Improving up-time is key to sustaining strong performance Indexed unplanned capacity loss and costs % 120 100 80 60 40 20 0 2006 2007 2008 2009 2010 Total cost (ex energy price) Unplanned downtime Continuous improvement employing global best practices Reliable supplier Reduce cost
Slide 75: Refining – cost advantaged
Refining – cost advantaged Relentless focus on operations 120 110 100 90 80 Energy intensity index Canada ex. IOL IOL 2002 2004 2006 2008 2009 2010 Personnel index 160 140 120 100 80 Canada ex. IOL IOL 2002 2004 2006 2008 2009 2010 • constant energy price and forex source: 2002-2008 Solomon, 2009, 2
Slide 76: Fuels Marketing structural advantage
Fuels Marketing structural advantage Integration with refining to maximize earnings industrial and wholesale retail Strong brand Market leader in all segments National network Efficient supply chain Low unit cash cost of operations fuel sales marine / aviation
Slide 77: Fuels Marketing Self-Help
Fuels Marketing Self-Help Continually optimizing channels to markets selective investment asset restructuring improve productivity cost efficiency
Slide 78: Best-in-class retail operations
Best-in-class retail operations Leader in productivity and cost Site productivity 2000=100 150 125 100 75 50 25 0 2000 2003 2007 2008 2009 2010 best-in-class Retail cash cost 2000=100 150 125 100 75 50 25 0 2000 2003 2007 2008 2009 2010 best-in-class 49% increase in site productivity Best-in-class c
Slide 79: Retail offer
Retail offer Leading edge non-fuel offer drives revenue growth Retail fuels volume also growing Retail growth % Indexed retail non-fuel sales Indexed retail sales volume 2006 2007 2008 2009 2010 Strong brand partnerships Tim Hortons Aeroplan Royal Bank Proprietary loyalty offers Esso Extra Speedpass
Slide 80: Lubricants and Specialties
Lubricants and Specialties Growing flagship brands in Canada Structurally advantaged with integrated manufacturing Optimized supply chain Canadian distributor for Mobil Super and leading synthetic, Mobil 1 Network of technical specialists
Slide 81: Lubricants – Synthetic growth rate
Lubricants – Synthetic growth rate Synthetic lubricants penetrating all parts of the lubricants market in Canada Mobil 1 volume growth since 2005 cumulative growth % 100 200520062007200820092010 Introduced Mobil Super in 2008 Mobil Delvac 1 – synthetic for commercial vehicles also high growth rate 3
Slide 82: Chemical business
Chemical business Anchored by a world class polyethylene plant with advantaged natural gas based feedstock Chemical profitability ROCE % 40 20 0 2006 2007 2008 2009 2010 Fully integrated with Sarnia refinery for flexibility to maximize overall earnings Marcellus shale gas liquids opportunity for add
Slide 83: Chemical business
Chemical business High return business with growth opportunities Premium products % of total volume 22 20 18 16 2004 2005 2006 2007 2008 2009 2010 Growth in high margin / differentiated products Fully optimized with ExxonMobil’s chemical business Sarnia strategically located near customer base
Slide 84: Downstream and Chemical – business strategy
Downstream and Chemical – business strategy Generating cash to fund Upstream growth Cumulative net cash generation billion $ 3 2006 2007 2008 2009 2010 Source of cash Selectively invest for resilient, advantaged returns Technology synergies with the Upstream
Slide 85: Finance—Flexibility
Imperial Oil – 2011 Investor Meeting Finance—Flexibility
Slide 86: Risk management
Risk management Key focus of all levels of management Strategic Reporting Operational Reputation Financial, Environmental, and Regulatory Performance Compliance Operational excellence Cost focus Credit management Staged & disciplined development of projects and new technology Long-term planning hori
Slide 87: Consistent financial approach
Consistent financial approach Consistent management approach focused on managing risks in a volatile commodity price environment Disciplined identification and design of investment opportunities Cash directed to fund attractive projects Excellent project management and control No special purpose ent
Slide 88: Governance and ethics
Governance and ethics member Board of Directors: five independent directors, 1 from ExxonMobil and 1 employee director Ethics policy and business practices apply to all employees and directors Full disclosure, straightforward and transparent reporting Program depth and follow-through—a distinguishin
Slide 89: Continually improving base business, offsetting inflation
Continually improving base business, offsetting inflation Nominal overhead costs flat corporation wide since 2000 Indexed cost above field % 200 150 100 50 0 Efficiencies captured actual actual 2000 2010 Long term consistent focus on operating expense at the business and corporate level Improved sta
Slide 90: Operational excellence
Operational excellence Total operating costs flat Total operating* cost billion $ Upstream Downst ream Chemical 2008 2009 2010 * Production and manufacturing + selling and general Efficiencies pursued in all segments and all business areas Adapt to the business environment Improved reliability key
Slide 91: Cash utilization
Cash utilization The first and best use of cash is to fund high quality investment opportunities billion $ 5 3 2 1 0 Dividends Capital and Exploration Share Buy-backs 2006 2 007 2 008 2009 2 010 Priorities Dividends Fund all quality opportunities Develop advantaged projects Share re-purchases
Slide 92: Asset management
Asset management Ongoing program to manage low performing assets – no writedowns Divestment proceeds million $ 2006 2007 2008 2009 2010 Active management Non-strategic Near end of life conventional oil and gas properties
Slide 93: Reliable and growing dividends
Reliable and growing dividends Steady year over year growth in dividend payment Annual paid dividends per share $ / share 0.50 0.40 0.30 0.20 0.10 0.00 2006 2007 2008 2009 2010 Paid dividends each year for more than 110 years Paid dividends per share increased each year since 1994 Paid dividends per
Slide 94: Solid financial position
Solid financial position Retain balance sheet flexibility to take advantage of opportunities Debt to capital % 50 40 30 20 10 0 2006 2007 2008 2009 2010 Cash flow billion $ 4 3 2 1 0 Progressed Kearl Initial Development when others stopped construction and delayed investments Acquired shale gas and
Slide 95: Capex vs operating cash flow
Capex vs operating cash flow Cash flow largely providing funds for growth projects million $ 5000 4000 3000 2000 1000 2006 2007 2008 2009 2010 2011 2012 Capex Actual cash flow Cumulative cash flow well above capital requirements Some debt required in the short-term
Slide 96: Financial strength enables growth
Financial strength enables growth Imperial Oil plans to spend $35 – 40 billion dollars this decade on Upstream growth projects Capital and exploration expense million $ 5000 4000 3000 2000 1000 0 2008 2009 2010 2011 2012+ Disciplined investment strategy Resilience through business cycles Supported b
Slide 97: Retaining balance sheet flexibility
Retaining balance sheet flexibility Even with growth in capital spending, retaining flexibility to take advantage of any opportunities that may arise and debt free by 2020 Debt to capital % 0 8 0 9 1 0 1 1 1 2 13 1 4 1 5 1 6 1 7 18 1 9 2 0 2 0 20 2 0 2 0 20 2 0 2 0 20 2 0 2 0 2 0 2 0 20 oil @ $100 /
Slide 98: Summary Remarks
2011 Investor Meeting Summary Remarks
Slide 99: Imperial Oil – long term growth
Imperial Oil – long term growth Relentless focus on maximizing long-term shareholder value Industry leadership through the business cycle Canada’s leading portfolio of energy businesses, assets and opportunities Continuous improvement of base business Commitment to technology leadership Superior fin
Slide 100: For more information
For more information www.imperialoil. ca. For more detailed investor information, or to receive annual and interim reports, please contact: Mark L. Stumpf Manager, Investor Relations/Planning & Analysis Imperial Oil Limited 237 Fourth Avenue SW Calgary, Alberta T2P 3M9 Email: mark.l.stumpf@esso. ca