Slide 1: 2014 Results and outlook
2014 Results and outlook February 2015
Slide 2: Safety
Safety
Slide 3: Safety and operational efficiency go together
Safety and operational efficiency go together Improving both safety and Safety performance operational efficiency TRIR and LTIR* 94 540 million man-hours 2.6 1.8 455 1.3 TRIR 0.7 LTIR 90 2012 2014 2010 2011 2012 2013 2014 Refining & Petrochemicals TRIR R&P availability (%) Improving safety performan
Slide 4: Market environment
Market environment
Slide 5: Sharp oil price decline, return to volatility
Sharp oil price decline, return to volatility Brent and ERMI Gas 100 99 $/b 15 14 $/Mbtu 50 8 $/Mbtu 5 4 $/Mbtu 19 $/t 2006 2010 2014 2006 2010 2014 Brent ($/b) ERMI* ($/t) Asia LNG proxy NBP Henry Hub Total’s response is to reduce breakevens As of 6 Feb. 2015; * European Refining Margin Indicator 2
Slide 6: Long term oil demand growth
Long term oil demand growth Oil supply-demand Mb/d, crude and NGLs Oil demand 0.6% CAGR 100 >90 $/b ~50 Mb/d new production needed by 2030, driven by decline rate and demand growth 60-90 $/b <60 $/b ~20% of new volumes require >90 $/b North America in 2014 cost environment Decline ~50 Mb/d of increm
Slide 7: Robust LNG fundamentals
Robust LNG fundamentals LNG supply-demand Mt/y LNG demand Demand to double by 2030, ~4% CAGR most of new supply not yet sanctioned 500 >14 $/Mbtu Potential New projects require adequate LNG prices projects 12-14 $/Mbtu • New LNG countries <12 $/Mbtu • US export economics Sanctioned 250 Total well po
Slide 8: Corporate outlook
Corporate outlook
Slide 9: Capitalizing on resilient fundamentals
Capitalizing on resilient fundamentals Lowest technical costs compared to peers* $/boe Leveraging Upstream strengths • Lowest technical costs among Majors 25 • Expanding cost reduction initiatives • Highest contribution from PSC among Majors • Delivering cash accretive start-ups 2005 2010 2014 Stron
Slide 10: Strong response to 2015 environment
Strong response to 2015 environment Cost reduction initiatives on Capex, Opex and exploration B$ 4 B$ ~4 B$ cash impact from cost reduction initiatives • >10% organic Capex reduction from 26.4 B$ to 23-24 B$ • 50% increase in Opex savings to 1.2 B$, including ‒ recruitment freeze in Upstream and R&P
Slide 11: Staying the course to deliver cash
Staying the course to deliver cash Group free cash flow Upstream free cash flow growth B$ compared to peers* 100 $/b Base 100 in 2014 80 $/b 10 70 $/b 70 $/b 100 2014 2015 2016 2017 2015 2017 2014 2015 2016 2017 Objective to generate >10 B$ free cash flow Leading cash flow growth driven by in 2017 w
Slide 12: 2014 results
2014 results fa) TOTAL
Slide 13: 2014 results
2014 results 2014 adjusted net income 2014 after-tax impairments Oil sands 12.8 B$ Upstream Unconventional gas 7.1 B$ European refining Refining & Chemicals Marketing & Services Corporate Other Return to production growth in 2H14 6.5 B$ after-tax impairment in 4Q14 due with CLOV start-up to changing
Slide 14: 2014 cash flow allocation
2014 cash flow allocation 2014 cash flow allocation B$ 30 B$ Acquisitions 30 B$ from operations and asset sales Change in net debt Asset sales 4.8 B$ asset sales closed Organic Organic investment reduced to investment 26.4 B$ in line with 2014 budget Cash flow from operations 31% gearing excluding b
Slide 15: Actively managing the portfolio
Actively managing the portfolio 2011-14 asset sales and acquisitions 2015-17 asset sales B$ B$ 10 B$ target 28 B$ Non-core 23 B$ Other Midstream & 4 B$ downstream signed Upstream Nigeria onshore Total Gaz In progress Simplification, Coal mines farm-outs & exits Bostik Asset sales Acquisitions End-20
Slide 16: Substantial liquidity and financial flexibility
Substantial liquidity and financial flexibility Net-debt-to-equity ratio B$ Liquidity established in advance of lower oil price • >15 B$ net cash 100 Net debt • >10 B$ credit lines Access to financial markets under favorable conditions Equity Gearing impacted by heavy investment phase and one-offs F
Slide 17: Upstream
Upstream
Slide 18: Increasing Upstream profitability
Increasing Upstream profitability Safety, cornerstone of our strategy Delivery • Executing projects on time and on budget • Growing production with major project start-ups Costs • Increasing Opex savings • Enhancing capital discipline Cash • Strong cash flow growth driven by accretive start-ups • Dy
Slide 19: 2015 production growth
2015 production growth Production >8% 8 project start-ups in 2015 • Including 3 already in production 2.15 Mboe/d New projects ADCO 125 kboe/d from new projects • ~60% Total-operated • ~60% deep offshore • ~50% PSC Successful entry into new ADCO contract ~1.5 B$ additional cash from new projects 201
Slide 20: 2014 reserve replacement rate of 100%
2014 reserve replacement rate of 100% Proved reserves Organic reserve replacement rate Bboe at year end 3-year average 111% 11.5 11.5 Portfolio 92% changes Production Additions Organic reserve replacement rate of 125% 2013 2014 2009-11 2012-14 More than 13 years of 1P and 20 years of 2P reserves 201
Slide 21: 2015 Upstream Capex and Opex
2015 Upstream Capex and Opex 2015 Capex discipline 2015 Opex reduction B$ B$ 10 23 B$ Greenfield 0.8 B$ Initial Brownfield Growth New ~20 B$ Reduction 18 6 2014 2015 2014 2015 Reducing greenfield investment Doubling 2015 Opex reduction • Utica, Zinia 2, Bonga SW… • Reducing staff to ~15,500 end-2015
Slide 22: Building momentum of cash accretive start-ups
Building momentum of cash accretive start-ups New start-ups contribution Start-ups contributing to 2017 production to 2017 production* % EPC progress of major start-ups By start-up year 600 0% 50% 100% Start-up kboe/d 2017 CLOV June 2014 2016 Eldfisk 2 Jan 2015 Ofon 2 Jan 2015 125 West Franklin 2 Ja
Slide 23: Renewing long term resources
Renewing long term resources Exploration Resource acquisition 2014 main successful wells 2015 main wells Capping exploration budget 2.5 Bboe added at <3 $/boe over 2012-14 • 2015 budget reduced by 30% to 1.9 B$ Successful entry into new ADCO contract • More selectivity to increase efficiency • 40 ye
Slide 24: Refining & Chemicals
Refining & Chemicals
Slide 25: Strong R&C results in volatile 2014 environment
Strong R&C results in volatile 2014 environment R&C adjusted net operating income and European refining breakeven B$ 2.5 x2 Reducing European breakeven <20 $/t 30 $/t Capturing high margins through increased site availability and flexibility 19 $/t Delivering cost saving programs ERMI 17 $/t 36 $/t
Slide 26: Successful R&C restructuring program
Successful R&C restructuring program Profitability roadmap ROACE in 2010 environment* Impairments Synergies 2014 Efficiencies +0.5% 13% 13% +2.5% Portfolio changes +2.5% Specialty Main chemicals platforms +0.5% +1.0% 6% Cepsa Port Arthur 450 M$ Dunkirk Antwerp achieved, Resins Normandy >400 M$ Ferti
Slide 27: Ongoing European restructuring
Ongoing European restructuring Refining & Petrochemicals European capacity index Base 100 in 2011 20% European capacity reduction 2011-17 100 95 • Closing a 5 Mt/y crude distillation unit at Lindsey 80 • Announcing in spring 2015 French refining roadmap Relentlessly enhancing competitiveness • Incre
Slide 28: Marketing & Services
Marketing & Services iis fa) TOTAL
Slide 29: Solid and resilient M&S results
Solid and resilient M&S results M&S adjusted net operating income* B$ 1.5 2010 2012 2014 2015 Brent 80 $/b 112 $/b 99 $/b Resilient results increasing through the oil cycle Opex reduction plan and strict capital discipline 1.8 B$ cash flow from operations in 2014 Repositioning towards growth areas a
Slide 30: Differentiation through leadership in Africa
Differentiation through leadership in Africa 2014 M&S net operating income Africa Market leader in Africa • 41 countries, >4,000 service stations,18% market share • Relying on local talent with proven track record Total leading presence Building on critical mass to grow in Africa in Africa • 35% of
Slide 31: Expanding high return lubricant business
Expanding high return lubricant business 2014 M&S net operating income Lubricants Strong 2014 financial performance • 30% of M&S net operating income and >25% ROACE • Low capital employed business model • ~450 M$ cash flow from operations Outpacing market growth 2014 worldwide lubricant sales • Incr
Slide 32: Key takeaways
Key take aways ~ zy y= aa ! ‘ % all eee q { a ‘ ) | ih Ms 2 ‘4 | i j _ ef ms = oars : a i \ E wT | | ie i ] I al 4 4 ‘ le | i = J M ha \ Sf i a Thied q >, 2 [| ” | | q | | i were: A : | |
Slide 33: Our strategy in key words
Our strategy in 4 key words Safety, the Group’s first priority Delivery of our roadmap in all business segments • Executing Upstream projects and delivering production • Reducing R&C exposure to Europe • Expanding M&S in growth areas Cost discipline more relevant than ever • Reducing Capex and expan
Slide 34: Competitive shareholder return
Competitive shareholder return Evolution of dividend and Brent $/b €/s 2.7 100 100 2.5 2.5 Introducing optional scrip dividend in 2015* 2.3 • 10% discount to market price 2.1 2.0 5050 1.9 Dividend policy of 50% payout on average 1.7 Strong dividend track record 0 1.5 2007 2014* Payout (%) 39 37 66 5
Slide 35: Addressing volatility and emerging stronger
Addressing volatility and emerging stronger Short-term strong response to environment • >10% reduction in Capex • 50% increase in Opex savings • 30% reduction in exploration budget • 8 B$ cash impact reducing breakeven by 40 $/b Mid-term staying the course to deliver free cash flow growth • 15 major
Slide 36: Appendices
Appendices
Slide 37: Portfolio of major projects
Portfolio of major projects Capacity Project Country Project (kboe/d) Share Op Status 2015 production growth 2014 CLOV Angola Deep offshore 160 40% Prod. Eldfisk 2 Norway Liquids/gas 70 39.9% Prod. 2.15 >8% Ofon 2 Nigeria Liquids/gas 70 40% Prod. Mboe/d New projects ADCO West Franklin Ph.2 UK Ga
Slide 38: Deep offshore, building on a core competence
Deep offshore, building on a core competence Elevated project IRRs Total-operated projects* Leading position among Majors 30% • >10% of Total’s production, >25% of Upstream results in 2014 • High tech and high return projects • Total to operate 10 FPSOs with ~1.7 Mb/d capacity by 2018 0 300 Peak pro
Slide 39: Total, a leader in Africa
Total, a leader in Africa Total production in Africa Largest producer in Largest marketer in Africa, kboe/d sub-Saharan Africa 18% market share +25% 800 Gabon Congo Angola Nigeria 2011 2014 2017 Total activities in Africa #1 deep offshore operator, 18% profitability, 3 new FPSOs to start 2016-17 ~40
Slide 40: An industry accustomed to cyclical volatility
An industry accustomed to cyclical volatility Typical supply cycle Higher oil prices Sharp oil price decline driven by Lower spare Increasing • Excess supply mainly due to increased US production capacity investments • Lower demand expectation Reducing Rising costs costs Reducing Higher Short term i
Slide 41: Disclaimer
Disclaimer This document may contain forward-looking information on the Group (including objectives (ii) Inventory valuation effect and trends), as well as forward-looking statements within the meaning of the Private The adjusted results of the Refining & Chemicals and Marketing & Services segments