Totalenergies Se · EURONEXT:TTE
Totalenergies — Total — Investor Day (September 2015)
31 slides from Totalenergies's investor day presentation, September 2015
Slide 1: Strategy & Outlook
Strategy Notes & Outlook September 2015 Strategy &2015 Outlook
Slide 2: Table of contents
Table of contents Safety, our first priority 2 Selection of slides from 4 focus sessions on investor day Competitive performance across business cycles 3 Upstream Opex reduction 19 Strong discipline on organic Capex 5 Operations: revisiting operating models and logistics 20 Strong discipline on Opex
Slide 3: Safety, our first priority
Safety, our first priority Cornerstone of operational excellence Total Recordable Injury Rate Per million man-hours for Total and peers* Global HSE and security management system 3 Accountability throughout the -12%/y organization Compensation linked to safety performance Reducing costs, no compromi
Slide 4: Competitive performance across business cycles
Competitive performance across business cycles Demonstrating robustness of integrated business model Adjusted net income % change 1H15 vs 1H14 for Total and peers* Brent -47% 0% Upstream resilience • Growing oil & gas production • First mover on costs -50% • PSCs resistant to lower price environment
Slide 5: Strong discipline on organic Capex
Strong discipline on organic Capex Controlling capital employed Organic Capex and DD&A B$ 28 B$ 23-24 26 B$ B$ 25 20-21 25 B$ 17-19 DD&A B$ 10 10 2013 2014 2015 2016 2017 2018 2019 2017+ 2015 Strategy & Outlook 5
Slide 6: Strong discipline on Opex
Strong discipline on Opex Cost reduction plan increased by 50% 2015 Opex reduction 2015-17 Opex reduction Contribution to operating results - B$ Contribution to operating results - B$ >1.2 B$ 3 B$* Corporate 66% achieved +50% >0.8 2 800 2000 2000 Upstream >1.2 0.8 Downstream 0 0 0 1H15 2015 2015 201
Slide 7: Strong production growth to 2019
Strong production growth to 2019 Benefiting from low decline rate Production Mboe/d ~5% 3 per year 6-7% 2014-19 per year 2014-17 2.15 1 2014 2015 2017 2019 2014 @ 99 $/b, 2015-19 @ 60 $/b 2015 Strategy & Outlook 7
Slide 8: Increasing reliability across business segments
Increasing reliability across business segments Leveraging R&C achievement Improving R&C availability Restoring Upstream production efficiency % Operated assets - % 95% 95% >3% >3% 90% 90% 85% 85% 2012 2014 2015 2014 2016 2017 Action plan launched in 2012 to achieve 94% Reducing unplanned production
Slide 9: Upstream cash flow from operations
Upstream cash flow from operations Growing cash generation through project delivery and increased efficiency Upstream cash flow from operations B$, at 60 $/b 80 $/b 20 20 major start-ups by 2019 1.8 B$ Opex reduction by 2017 >3% increase in production efficiency by 2017 0 2015 2017 2019 2015 Strateg
Slide 10: Strong Downstream performance
Strong Downstream performance Taking advantage of restructuring Downstream cash flow from operations B$ +20%* 2015-19 Capturing favorable 2015 margins 6 25 $/t Investing 3-4 B$ per year on core assets • Selectively expanding petrochemicals on major integrated platforms • Growing retail and lubricant
Slide 11: European Downstream delivering results
European Downstream delivering results Consistently achieving objectives European repositioning since 2011 Schwedt Refocused European portfolio • R&C reducing capacity by 20% end-2016 Stalybridge Lindsey • M&S exiting businesses below critical mass 1 cracker Antwerp 2016 & polymer line Executing act
Slide 12: Portfolio management integrated into strategy
Portfolio management integrated into strategy Maintaining 2015-17 asset sale program of 10 B$ 2015-17 asset sales B$ 10 B$ 5 Ability to find strategic buyers to maximize value Bostik FUKA Continuing to sell non-core assets SPDC Geosel TCSA Laggan Totalgaz Schwedt Turkey Selective resource acquisitio
Slide 13: Covering dividend organically at 60 $/b from 2017
Covering dividend organically at 60 $/b from 2017 Capital discipline and production growth driving free cash flow Organic free cash flow B$, at 60 $/b 80 $/b Strong balance sheet to bridge 2016 10 100% cash dividend at 60 $/b from 2017 Committed to shareholder return 0 2015* 2017 2019 Free cash f lo
Slide 14: Long term vision
Long term vision Committed to oil & gas integrated business model, investing in new energies Allocation of capital employed Positioning in new energies Downstream Upstream Taking advantage of fast growing renewable energy market to build a profitable business Targeting organic production growth of 1
Slide 15: Preparing the future with technological excellence
Preparing the future with technological excellence Global R&D investment of 1 B$ per year, growing at 3% per year Seismic imaging Deep offshore LNG Pangea supercomputer Subsea separation and Arctic LNG development upgraded to 6.7 petaflops multiphase pumps Lubricants Petrochemicals Improving engine
Slide 16: Operations: revisiting operating models and logistics
Operations: revisiting operating models and logistics Focusing on improving efficiency New operating model Executing logistics action plan Angola Block 17 - headcount Nigeria - 100% operated savings - M$ 40 Synergies -30% Fuel Campaign teams consumption 500 & smart rooms 20 CLOV Pazf lor Fewer vesse
Slide 17: Supply chain: reducing costs through contract renegotiations
Supply chain: reducing costs through contract renegotiations Already achieving savings of up to 30% Negotiated rate and fee reduction examples -40% -30% -20% -10% 0% Marine logistics Seismic acquisition Well services Rigs Rotating equipment Subsea services Tubulars Operations & maintenance Engineeri
Slide 18: Structure costs: company-wide initiatives
Structure costs: company-wide initiatives Building leaner organizations Lean model for mature fields UK - staff and contractor headcount -20% Reducing global headcount 1,000 • Cutting numbers and rates of contractors • Aligning manpower to activity levels • Freezing recruitment 500 Addressing all st
Slide 19: Tackling drilling costs
Tackling drilling costs Optimizing rig fleet and drilling operations Managing rig count Improving well execution Operated rigs Dalia, Angola - drilling time per well 120 60 100 100% 50 50 80 Actions since 40 -35% Jan 2015 60 30 25 Lower Optimizing Rig NPT* operations sequence 40 20 10 20 Committed 0
Slide 20: Building a more resilient and profitable Upstream
Building a more resilient and profitable Upstream Global cost reduction program targeting sustainable change Reducing Opex per barrel $/boe Back to basics 10 • Investing with discipline through “good enough” design 7 $/b • Revising operating models and increasing efficiency Changing culture sustaina
Slide 21: Drilling top value creation prospects while managing risks
Drilling top value creation prospects while managing risks Renewing >0.5 Bboe per year with finding costs <3 $/boe High-graded conventional exploration potential by play thematics and regions * Balanced high-impact drilling strategy Deltas • 50% in core and emerging basins • 25% near-field explorati
Slide 22: 2016-18 high-impact exploration program
2016-18 high-impact exploration program Targeting >1.5 Bboe over 3 years Wells targeting >500 Mboe* Wells targeting 100-500 Mboe* * 100% mean resources 2015 Strategy & Outlook 26
Slide 23: A global LNG player active in all markets
A global LNG player active in all markets Yamal Snøhvit South Hook Dunkirk Fosmax US exports Altamira Hazira Nigeria Papua Yemen project Qatargas 1 & 2 Adgas Bontang Qalhat Angola Oman Liquef action GLNG Ichthys Long term purchase Regasif ication Long term sale 2015 Strategy & Outlook 27
Slide 24: Profitable and growing LNG business
Profitable and growing LNG business Maximizing value from integration of upstream and trading Total #3 in LNG* LNG contribution to Upstream in 2020 Mt/y 30% of net operating income Trading from third 20% of party purchases production 15 Trading from Upstream production LNG plant direct sales 2014 20
Slide 25: Maximizing value of Upstream LNG production
Maximizing value of Upstream LNG production Resilient contracts through the oil cycle 2014 Upstream LNG sales by area LNG contract price reviews Mt/y 13 1212 Rest of world 11 North America No price review 10 Europe 9 8 2015-19 7 6 5 Asia 4 3 2 1 0 Af ter 2020 Contractual Realized destination destina
Slide 26: Well positioned to seize new opportunities in LNG
Well positioned to seize new opportunities in LNG Leveraging size and flexibility to capture margins Trading arbitrage Trading portfolio evolution $/Mbtu Mt/y >2x 15 NBP Spot HH 2014: 8 2014: 4 1H15: 7 Flexible 1H15: 3 JKM destination Regas capacity 2014: 14 1H15: 8 Fixed Long term destination sales
Slide 27: Deep offshore in Africa
Deep offshore in Africa Culture of continuous innovation GIRASSOL ROSA AKPO CLOV Angola Angola Nigeria Angola First giant deep of f shore 20 km tie-back to First all-electric FPSO, Subsea multi-phase FPSO, innovative Girassol FPSO f our-stage separation pumps, variable speed riser towers drive techn
Slide 28: E&P in Africa: continuing to deliver value
E&P in Africa: continuing to deliver value Securing the future through operational excellence and project delivery Africa SEC production Africa E&P cash flow from operations kboe/d B$, at 60 $/b 20% 9 >40% 800 8 700 7 600 6 500 5 400 4 300 3 200 2 100 1 0 0 2015 2017 2019 2015 2017 2019 Producing sa
Slide 29: A bright future for the Group in Africa
A bright future for the Group in Africa Capitalizing on the fastest growing continent Group cash flow from operations in Africa B$, at 60 $/b 10 >40% 0 2015 2017 2019 Deeply rooted for more than 80 years Growth supported by a booming continent Local management with specific know-how 2015 Strategy &
Slide 30: 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
Slide 31: total.com
For more information, please visit total.com TOTAL S.A. Investor Relations 10 Upper Bank Street, Canary Wharf London E14 5BF United Kingdom Share capital: 6,035,891,002.50 euros 542 051 180 RCS Nanterre Reception: +33 (0)1 47 44 45 46 total.com Investor Relations: +44 (0)207 719 7962