Slide 1: Results and Outlook
Results and Outlook February 2018
Slide 2: Safety, a core value
Safety, a core value Cornerstone of operational efficiency Total Recordable Injury Rate for Total and peers* Per million man-hours 2 Continuing to improve safety performance Contractors across all segments 1 0.9 Strong focus on major industrial risks Staff Strengthening engagement with our main supp
Slide 3: Responsible energy major
Responsible energy major Leadership on transparency and collective action Transparency and engagement Leadership and collective action Annual report since 2016 UN SDG Pioneer driving Integrating climate into partnerships in our strategy low-carbon investments Support to TCFD, Oil & Gas Climate Initi
Slide 4: Integrating climate into strategy
Integrating climate into strategy Taking into account anticipated market trends Global energy demand Mboe/d Focusing on IEA 2°C oil projects scenario* with low breakeven 300 Solar / Wind Bio-energy Hydro Nuclear Expanding along the Coal gas value chain Oil Natural gas Growing profitable 2016 2040 lo
Slide 5: Price recovery driven by robust demand and OPEC-NOPEC policy
Price recovery driven by robust demand and OPEC-NOPEC policy Volatility in energy markets Brent ($/b) Gas prices ($/Mbtu) 20 100 Henry Hub 15 NBP JKM (Far East LNG) 10 50 5 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Oil demand increased by 1.6 Mb/d in 2017 LNG demand increased by 10% in 2017
Slide 6: 2017 results and 2018 objectives
2017 results and 2018 objectives
Slide 7: Strong 2017 results
Strong 2017 results Best-in-class profitability with ROE > 10% Adjusted net income Return on Equity B$ % +28% 10.6 B$ 10% Marketing & Services 8.3 B$ Refining & Chemicals Gas, Renewables & Power Exploration & Production Corporate 2016 2017 Brent ($/b) 44 54 ERMI ($/t) 34 41 * Peers: BP, Chevron, Exx
Slide 8: Growing free cash flow generation
Growing free cash flow generation Increasing leverage to oil price in line with guidance Cash flow allocation Organic free cash flow B$ B$ 10 > 10 B$ Asset sales Debt reduction 5 Asset acquisitions CFFO 21.1 14.4 Organic investment 2015 2016 0 2017 Cash dividend Sources Uses -5 Brent ($/b) 52 44 54
Slide 9: Continuing to deliver strong production growth
Continuing to deliver strong production growth In line with 5% CAGR target for 2016-22 Production growth Mboe/d 3 14 major start-ups in 2017-18* +6% +5% Managing decline rate at ~3% 2,5 95% reserve replacement rate in 2017 • 101% excluding sales and acquisitions • 5-year average > 100% • > 12 years
Slide 10: Competitive advantage on cost
Competitive advantage on cost Lowest production costs Opex savings Production costs (ASC 932) B$ $/boe 5 B$ > 4 B$ 3.7 B$ 15 Downstream & Corporate Chevron Exxon Shell 9.9 10 Upstream 7.4 BP 5.4 5.9 5 2017 2018 2020 2014 2017 Feb 17 guidance: 3.5 B$ 4 B$ Feb 17 guidance: 5.5 $/boe Continued improvem
Slide 11: Investing with discipline
Investing with discipline Sustainable Capex underpinning legacy and growth projects Organic Capex 2018 Capital investment* B$ B$ ~14 B$ 14.4 B$ Downstream E&P development projects Gas Renewables & Power E&P producing assets 2017 2018 Exploration & resource renewal Feb 17 guidance: 14-15 B$ 13-15 B$
Slide 12: Launching > 10 high return projects in 2017-18
Launching > 10 high return projects in 2017-18 Leveraging optimized designs and low cost environment Main project FIDs Net capacity & IRR for projects at 60 $/b Working interest, 100% capacity kboe/d net Sanctioned in 2017 400 Absheron 1 Azerbaijan 40% op. 35 kboe/d kboe/d Vaca Muerta Argentina 41%
Slide 13: New exploration strategy beginning to deliver results
New exploration strategy beginning to deliver results 2018 budget of 1.2 B$ Successful results in 2017 • Ballymore major oil discovery (US GoM) • Proving commerciality of Preowei (Nigeria) • Confirming Vaca Muerta world class oil & gas resources (Argentina) Entering key hotspots at competitive cost
Slide 14: Best-in-class Downstream
Best-in-class Downstream Sustainable 7 B$ cash flow from operations Downstream CFFO Downstream ROACE for Total and peers* B$ % ~7 B$ 31% ROACE 7 30% 25 $/t 2015 2016 2017 2018 ERMI ($/t) 49 34 41 35 * Peers: BP, Chevron, ExxonMobil, Shell – based on public data 2017 Results and Outlook 14
Slide 15: Strengthening balance sheet
Strengthening balance sheet Lowering gearing through the cycle Net-debt-to-equity Net-debt-to-capital for Total and peers** % End-2017, % 31% 28% 30% 27% Petrobras 20% 12% Alliance* 14% 10% 2014 2015 2016 2017 Brent ($/b) 99 52 44 54 1.9 B$ non-recurring items in 2017 Best-in-class gearing * Closed
Slide 16: Delivering on objectives
Delivering on objectives 2017 objectives Target Realized Organic Capex 14-15 B$ 14.4 B$ Cost reduction 3.5 B$ 3.7 B$ 5.5 5.4 Upstream Opex $/boe $/boe Production growth > 4% +5% Downstream CFFO ~ 7 B$ 6.9 B$ 2015-17 disposal program 10 B$ > 10 B$ Organic pre-dividend < 30 $b 27 $/b breakeven 2017 Re
Slide 17: Outperforming peers in 2017
Outperforming peers in 2017 Upstream net income per barrel Downstream ROACE $/b % 6 30% Group ROE Net-debt-to-capital % End-2017, % 40% 10% 20% Peers: BP, Chevron, ExxonMobil, Shell – based on public data 2017 Results and Outlook 17
Slide 18: Outlook
Outlook
Slide 19: Resetting the company through the cycle
Resetting the company through the cycle Operational excellence across all segments Production Organic free cash flow Mboe/d B$ +20% +8.5 B$ 6.7 2.57 2.15 -1.8 2014 2017 2014 2017 Brent ($/b) 99 54 Production cost (ASC932) Net-debt-to-equity $/boe % -45% -17 pts 9.9 31% 5.4 14% 2014 2017 2014 2017 20
Slide 20: Taking advantage of the cycle to prepare the future
Taking advantage of the cycle to prepare the future Upgrading portfolio and launching profitable projects Production Upstream CFFO Mboe/d B$ +5% +6 B$ CAGR 15 2.6 2017 2022 2017 2022 Brent ($/b) 54 60 LNG growth Downstream free cash flow Mt/y B$ x2.5 ~30% > 40 3.9 16 2017 2022 2017 2022 2017 Results
Slide 21: Upgrading portfolio
Upgrading portfolio Building on our strengths Acquisitions and divestments 2015-17 Middle East & North Africa B$ ADCO, Al-Shaheen, South Pars 11 North Sea Maersk Oil acquisition Maersk Oil (shares and debt) Africa 10 Moho Nord, Egina, Kaombo start-ups 10 B$ asset sale program Deep offshore completed
Slide 22: Expanding legacy position in Middle East – North Africa
Expanding legacy position in Middle East – North Africa Adding giant long plateau, low cost resources 3 B$ 800 CFFO kboe/d in 2020 production at 60 $/b in 2020 Enhancing core positions • ADNOC partnership, Sonatrach partnership Iraq FID Halfaya 3 • Launching Halfaya 3 22.5% Entering attractive asset
Slide 23: Rejuvenating North Sea portfolio
Rejuvenating North Sea portfolio Combining operational skills of Total and Maersk Oil ~ 3.5 B$ 500 CFFO kboe/d Highgrading the portfolio in 2020 production at 60$/b in 2020 • Acquiring large low breakeven assets • Divesting high cost assets West of Maersk Oil integration Shetland Alwyn Martin Linge
Slide 24: The leader in Africa
The leader in Africa Unique presence across the continent > 9 B$ ~ 750 E&P + M&S CFFO kboe/d in 2020 production Moho Nord started up in 2017 at 60 $/b in 2020 Egina and Kaombo to start up in 2018 C9 Launching Lake Albert, Zinia 2, Ikike in 2018 ROP Preparing future Preowei Ikike Egina Owowo Lake Alb
Slide 25: Building new core area at competitive cost in Brazil
Building new core area at competitive cost in Brazil Leveraging deep offshore expertise to prepare future growth > 1 B$ > 100 CFFO kboe/d in 2022 production at 60 $/b in 2022 > 1 Bboe pre-salt resources being developed Wahoo, 20% Itaipu, 27% Rio de Janeiro São Paulo Developing giant low-breakeven Li
Slide 26: Engie LNG acquisition, step change in fast growing market
Engie LNG acquisition, step change in fast growing market #2 LNG player managing > 10% of worldwide market 2020 LNG portfolio Mt/y for Total*, BP, Chevron, ExxonMobil and Shell Taking advantage of strong LNG demand • +7% in 2016, +10 % in 2017 • 5%/y 2018-25 driven by Asia, notably China + Leveragin
Slide 27: Leading LNG player with global reach
Leading LNG player with global reach Leveraging size and flexibility in increasingly commoditized market 2020 portfolio* Mt/y spot 40 Snøhvit Yamal Isle of Grain 3rd party South Hook Zeebrugge purchase Regas Montoir Dunkirk access Fos Cameron Driftwood Idku Altamira Hazira Nigeria Qatargas Adgas Yem
Slide 28: Expanding high return petrochemicals
Expanding high return petrochemicals Building on worldclass integrated platforms Petrochemical projects Growing US petrochemicals Borealis Nova JV New ethane cracker New polyethylene unit Expanding worldclass 2 B$/y CFFO by 2020* Daesan platform Cracker expansion Polyethylene expansion Antwerp Addin
Slide 29: Continuing to grow Marketing & Services
Continuing to grow Marketing & Services Diversified, non-cyclical source of sustainable cash flow Marketing & Services CFFO B$ + 100M$ per year + 100M$ per year 2 2014 2017 2020 Expanding retail and lubricants in large, fast growing markets First Total service station in Mexico 2017 Results and Outl
Slide 30: Committed to shareholder return
Committed to shareholder return
Slide 31: Visibility on growing cash flow
Visibility on growing cash flow Strong balance sheet Debt adjusted cash flow (DACF)* B$ Cash-accretive production growth 30 +6 B$ • +2 B$ from Maersk and Brazil 60 $/b • +2.5 B$ from Ichthys, Egina and Kaombo 22.2 50 $/b • CFFO from major start-ups > 30 $/boe 54 $/b Increasing leverage to oil price
Slide 32: Increasing dividend
Increasing dividend Free cash flow yield significantly above dividend yield Organic free cash flow and dividend per share $/share Growing dividend by 10% over 3 years 5 • From 2.48 €/share in 2017 to 2.72 €/share in 60 $/b 2020 2.7 50 $/b Increasing first 2018 interim dividend by 3.2% 54 $/b • From
Slide 33: Shareholders to benefit from oil price upside through share buyback
Shareholders to benefit from oil price upside through share buyback Up to 5 B$ share buyback over 2018-20 • Subject to oil price recovery • In addition to scrip shares buy back 2017 Results and Outlook 33
Slide 34: Clear priorities for cash flow allocation for next 3 years
Clear priorities for cash flow allocation for next 3 years 1 2 3 4 Capital Balance Share Dividend investment sheet buyback 10% increase Maintain 15-17 B$/y Capex over 3 years gearing < 20% Up to 5 B$ over 2018-20 subject to oil price recovery No scrip dilution grade A credit rating 2017 Results and
Slide 35: Growing cash and increasing return to shareholders
Growing cash and increasing return to shareholders Maintaining discipline while pursuing an ambitious strategy Delivering growth • Operational excellence • Leadership on costs • Cash-accretive production growth Preparing the future • Upgrading portfolio and launching profitable projects • Integrated
Slide 36: Appendix
Appendix
Slide 37: 2017-19 major start-ups
2017-19 major start-ups kboe/d Share Country Kashagan 370 16.8% Kazakhstan Moho Nord 100 54% Op. Rep. of Congo Edradour-Glenlivet 35 60% Op. UK 2017 Libra Pioneiro 50 20% Brazil Yamal LNG 450 20% Russia Fort Hills 180 26% Canada Tempa Rossa 55 50% Op. Italy Ichthys LNG 340 30% Australia Vaca Muerta
Slide 38: Disclaimer
Disclaimer This document may contain forward-looking information on the Group (including (ii) Inventory valuation effect objectives and trends), as well as forward-looking statements within the meaning of the The adjusted results of the Refining & Chemicals and Marketing & Services segments Private