Totalenergies Se · EURONEXT:TTE
Totalenergies — Investor Day (September 2021)
75 slides from Totalenergies's investor day presentation, September 2021
Slide 1: Building a sustainable multi-energy company
Building a sustainable multi-energy company September 2021
Slide 2: Executive committee presenters
Patrick Pouyanné Jean-Pierre Sbraire Chairman and Chief Executive Officer Chief Financial Officer Helle Kristoffersen Namita Shah President, Strategy & Sustainability President, OneTech* * supervising People & Social Engagement Stéphane Michel Nicolas Terraz President, Gas, Renewables & Power Presid
Slide 3: Safety, operational excellence and sustainable development
Safety, operational excellence and Total recordable injury rate for TotalEnergies and peers* Safety sustainable development go together Per million man-hours Respect of human rights is a Respect for Others cornerstone of our Code of Conduct Our commitment to fight against Zero Tolerance corruption a
Slide 4: More energy, always more sustainable
TotalEnergies’ purpose is to supply more affordable, more available and cleaner energy to as many people as possible Always more More energy sustainable 4 September 2021 - Strategy and Outlook Less emissions
Slide 5: Building a multi-energy company to benefit all our stakeholders
Building a multi-energy company to benefit all our stakeholders Oil • Focusing on low-cost and low GHG emissions developments • Developing carbon capture and storage Strategy supported by shareholders Natural Gas • Consolidating our leading positions as a top 3 low-carbon LNG company • Minimizing me
Slide 6: September 2021 - Strategy and Outlook
6 September 2021 - Strategy and Outlook
Slide 7: Production growth: driven by LNG and Electricity
Biofuel Biogas, H2 Renewables Oil Domestic and pipe gas CCGT Production growth: LNG PJ/d driven by LNG and Electricity to 10 by 2030 5 2019 2025 2030 2019 2025 2030 2019 2025 2030 6 September 2021 - Strategy and Outlook
Slide 8: Energy sales mix by 2030
Biofuel Biogas, H2 Energy sales : Oil Domestic and pipe gas LNG PJ/d Oil products LNG over the decade -30% ~ x2 Sales mix by 2030 : 10 oil x3 gas 5 electricity 5% biomass, H2 2019 2025 2030 2019 2025 2030 2019 2025 2030 7 September 2021 - Strategy and Outlook
Slide 9: Capex 2022-2025: 13-15 B$/y
~50% Maintenance 13-15 B$/y 2022-2025 ~50% Growth 8 September 2021 - Strategy and Outlook
Slide 10: Iraq project as proof of concept
Gas gathering & treatment Solar Recover gas currently flared to supply 1 GW by 2025, 25-year PPA Iraq project as power generation: 1.5 GW by 2026, growing to 3 GW Over -100 Mt CO2eq1 from flaring reduction Supply Basra regional grid Developed and operated by TotalEnergies proof of concept Developed
Slide 11: September 2021 - Strategy and Outlook
11 September 2021 - Strategy and Outlook
Slide 12: Ambitions 2030 objectives vs 2015
Ambitions 2030 objectives vs 2015 Net emissions on operated oil and gas facilities (Scope 1+2) Scope 3 worldwide emissions Carbon intensity (2) (Scope 3) (Scope 1+2+3) (1) Related to the use by our customers of energy products sold for end-use (2) Average carbon intensity of energy products used by
Slide 13: On the way to Net Zero across worldwide operations
- 40% Scope 1+2 emissions from operated oil and gas facilities MtCO2e Developing strong 46 Net* low-carbon culture emissions -40% Track CO2 <40 40 vs 2015 across all our operations Acquisitions & start-ups since 2015 25-30 Relentlessly reduce methane emissions to near-zero Manage our portfolio Devel
Slide 14: Carbon capture and storage and nature-based solutions
Northern Lights Aramis NEP* Norway Netherlands UK TotalEnergies 33% TotalEnergies 50%, co-operator TotalEnergies 17% Onshore and offshore infrastructure for storage in the Carbon Storage Endurance reservoir, a large- scale saline aquifer Investing 100 M$/y 4 MtCO2/y by 2026 > 400 MtCO2 storage capac
Slide 15: Anticipating customers demand: growing sales while reducing emissions
lower Energy sold to our customers Net carbon intensity* (Scope 1+2+3) Scope 3 worldwide emissions*** PJ/d Base 100 in 2015 MtCO2e +15% Realized > -20% -8%** 100 24 24 400 30 2019 2030 2015 2020 2030 2015 2030 Anticipating our customers demand: growing sales while reducing emissions * Average carbon
Slide 16: Favoring substitution, promoting renewables, decarbonizing transport
Favoring substitution Promoting renewables Decarbonizing transport Promote alternatives to oil products Scale-up corporate PPAs EVs CNG, LNG, biogas and H2 Biofuels and SAF 15 September 2021 - Strategy and Outlook
Slide 17: A European company leveraging EU Green Deal opportunities
-30% Scope 1+2+3 emissions in Europe* MtCO2e -30% TotalEnergies welcomes the “Fit for 55 package” 250 and supports: Generalization of carbon price Massive development of renewables Strong infrastructure development (high-power electric charging points, hydrogen valleys and corridors) Low carbon and
Slide 18: September 2021 - Strategy and Outlook
18 September 2021 - Strategy and Outlook
Slide 19: Committed to a just energy transition
Integrating SDGs into our strategy, projects and operations SUSTAINABLE AND AFFORDABLE ENERGY Leading the transformation of the energy model to Committed to a combat climate change and meet energy needs just energy transition PEOPLE WELL-BEING Being a reference as an employer and a responsible opera
Slide 20: Highest ESG scores among IOC peers
Highest ESG scores among IOC Peers and competitive with Utilities Bloomberg CDP MSCI ESG ISS ESG Sustainalytics S&P ESG Refinitiv Transition Climate Score IOC Peer* Rank 1st ex. 2nd ex. 1st ex. 3rd 1st 1st 1st score A- A B- 27.3 72/100 90/100 8.4/10 Utilities** average score A- AA C+ 26.8 81/100 75/
Slide 21: Myanmar: context, dilemma and actions taken
CONTEXT ACTIONS TAKEN TotalEnergies operates the Yadana Field Publicly condemned the coup through a joint statement and MGTC pipeline, used for generating with the Myanmar Centre for Responsible Business 50% of Yangon’s electricity and supplying 12% of Thailand’s gas Discontinued the A6 block gas di
Slide 22: Uganda and Tanzania project underway
Project underway – First oil 2025 Human rights : Applying best standards for land acquisition Development of Tilenga and Kingfisher 6,400 ha to be acquired, 723 households to be oil resources in Uganda (230 kb/d) and relocated, 18,800 impacted stakeholders EACOP midstream project (1,400 km Process c
Slide 23: Biodiversity ambition and commitments
Our ambition and commitments No oil or gas exploration or extraction in UNESCO’s world natural heritage sites No oil field operations in Arctic sea ice areas Biodiversity action plans for new projects and existing sites A net positive impact on biodiversity for each new project on sites of priority
Slide 24: Palm oil no longer used at La Mède refinery by 2023
CONTEXT ACTIONS TAKEN Controversies around deforestation Banned palm oil integration into biofuels sold and loss of biodiversity linked to the use in France since January 2020 of palm oil Change in taxation from the French <100 kt will be used in 2021 despite a 300 kt maximum authorization governmen
Slide 25: Minimizing environmental and social footprint: Arctic LNG
CONTEXT ACTIONS TAKEN Arctic LNG 2 project of 3 liquefaction trains Project applies strictest international standards (3×6.6 Mtpa nominal capacity) under construction of which Equator Principles and IFC Performance Standards under scrutiny of Export Credit Agencies TotalEnergies holds a 10% direct i
Slide 26: Methane emissions reduction
ACHIEVEMENTS ACTIONS TAKEN Eliminate routine flaring by 2030 Increase frequency of Leak Detection & Repair campaigns CH4 intensity for operated gas assets Develop cutting edge multitech measurement platform, CO2 & CH4 proprietary sensor, satellite detection Install closed flare systems, exclude gas
Slide 27: Create an environment allowing women and men to develop
OUR AMBITION ACTIONS TAKEN Create an environment Women represented 41% of permanent hires in 2020, up from 33% in 2014 allowing women and All recruitment shortlists must include women men to express and Guaranteed equal pay since 2010: regular audits develop their potential Conducted to control BY 2
Slide 28: September 2021 - Strategy and Outlook
28 September 2021 - Strategy and Outlook
Slide 29: Supporting employees through the transition
Regular pulse surveys at macro Monthly thematic webinars and roundtables and micro level on energy transition projects Comprehensive support for Systematic managerial communication managers of all teams: coaching, on emblematic projects of the company co-development Communication by and for peers on
Slide 30: A new central organization: OneTech
1. Adapt to the new Company industrial activities A new central organization 2. Better develop, retain and attract talents in place since 1st September 3. Foster and accelerate innovation Integrating all the technical expertise of the Company to support transformation Mobilize our technical resource
Slide 31: World class technical expertise
Experts in floating structures Chemical and process Cryogenics experts (LNG) Geologists Metocean data specialists engineers for H2 liquefaction Drillers Offshore wind E fuels Hydrogen Carbon capture and storage World class expertise in project management 30 September 2021 - Strategy and Outlook
Slide 32: September 2021 - Strategy and Outlook
32 September 2021 - Strategy and Outlook
Slide 33: Liquids demand and supply: 3 to 5 Mb/d needed
Liquids demand Supply Mb/d Conventional oil decline ~ -4%/year Brownfield developments 100 reducing decline to ~ -2%/year Uncertainty on shale production growth Our estimate: 80 3 to 5 Mb/d New greenfield conventional projects to be sanctioned by end-2022 needed to meet 2025 demand 60 Compared with
Slide 34: Upstream production growth
Upstream production Mboe/d +3%/y LNG: +6%/y 3 ~2.85 to be sanctioned LNG 2021-23 impact of OPEC quotas and 2 Domestic & Covid Capex reduction Pipe Gas Mozambique LNG 1 postponed to 2026 Oil 2021 2023 2025 2026 33 September 2021 - Strategy and Outlook
Slide 35: Brazil, Uganda, Iraq: resilient low-cost projects
BRAZIL UGANDA IRAQ Mero (20%) Lake Albert (56.7% op.) Ratawi (assumes 50% op.) Criteria for new hydrocarbon projects Profitability evaluated at 50 $/b with 40 $/t1 carbon price and 100 $/t from 2030 Focus on low-cost projects 4 x 150 kb/d 230 kb/d 140 Mcf/d & 210 kb/d by 2026 First oil 2022-25 First
Slide 36: Low production costs: targeting 5$/boe OPEX
2020-21 divestments Oil Gas Divested assets metrics VestProcess oil pipes Quad 15&30 $29 47 kg /boe CO2eq/boe Dunga* Sarsang* Technical costs Emissions Chinook Mukhaizna Petrocedeño OML17 Brunei CA-1 Gabon non-operated assets* proceeds vs ~200 M$/y net cash flow** Wahoo GLNG infrastructure productio
Slide 37: Free cash flow and short-cycle projects
B$/y, 2022-26 average 80 $/b Short-cycle projects upside 15 60 $/b In portfolio 50 $/b Free cash flow at 50 $/b ~1 Bboe reserves 10 >5 B$/y ~4 $/boe average Capex 30 $/b 5 6 rigs* reactivated in 2021-22 Ability to flex Capex CFFO Net Investments demonstrated in 2020 * operated perimeter 36 September
Slide 38: Adapting refining capacity and oil product sales
Oil product sales Refining capacity Oil production Adapting Refining Biofuels capacity and oil product Mboe/d sales to oil production 2 Selectively arbitraging lowest margin oil product sales 1 Promoting/substituting low-carbon sales, growing biofuels 2019 2030 2019 2030 2019 2030 Reducing Scope 3 w
Slide 39: Refining: adapting to demand evolution in Europe
Refining: adapting to demand evolution in Europe European oil products demand European refining sites Mb/d Lindsey 2021 Sale -30% Schwedt 2015 Refinery Sale of interests 12 Biorefinery Dunkirk 2010 Closure Grandpuits 2020 Zero-crude platform conversion La Mède 2015 Biorefinery conversion 2019 2025 2
Slide 40: Increasing share of biofuels
Biofuels world consumption Mboe/d 4 x2 Renewable diesel (HVO) Renewable diesel production by 2025 Biodiesel ester (FAME) Increasing share of biofuels 2 in road transportation Biogasoline Emerging market for sustainable aviation fuels (SAF) Pioneering synthetic fuels from 2010 2019 2025 2030 green H2
Slide 41: Clean hydrogen projects
Clean H2 projects Northern Carbon storage project Lights* 300 kt H2/y * Sanctioned Blue H2 project Zeeland - 90 kt H2/y Green H2 project Northern Endurance • CO2 capture on SMR grey hydrogen consumption Partnership • H2ero green project linked to Antwerp - 35 kt H2/y Aramis offshore wind farm • Part
Slide 42: Petrochemicals: expanding profitably in polymers markets
Petrochemicals: expanding profitably in dynamic polymers markets Petrochemicals CFFO B$ 2 > +0.5 B$ US - JV Borealis Algeria - JV Sonatrach Biopolymers (50%) (49%) JV Corbion (50%) Ethane cracker and PE line (1 Mt) PDH/PP unit (0.5 Mt) Thailand plant (75 kt) – 2018 France plant (100 kt) – 2024 2021-
Slide 43: Being a partner in our customer's carbon neutrality journey
Being a partner in our customer’s carbon neutrality journey 7-8 Mt/y biofuel sales avoided through substitution by 2025 with super fast chargers EV operated charge points in Europe increasing share of biomethane Committing in LNG bunker fuel over 2021-25 biojet production 42 September 2021 - Strateg
Slide 44: Being selective on oil product sales
Being selective on oil product sales Oil product sales and Scope 3 emissions in Europe* MtCO2e Arbitraging portfolio for low margin/high CO2 sales 250 - 30% Eliminate low margin sales to resellers Focus on high value airport locations Discontinue sale of fuel oil to power generation from 2025 2015 2
Slide 45: Electric mobility: battery manufacturing and EV charge
Being as recognized in tomorrow’s electric mobility as in today’s fuel market Battery manufacturing (TotalEnergies/Saft) EV Charge Investing in EV battery manufacturing in Europe operated charge points* by 2025 ACC (Automotive Cells Company) 33/33/33 JV with Stellantis and Positioning TotalEnergies
Slide 46: Marketing & Services: retail, B2B, new energies
Marketing & Services CFFO B$ +100 M$/y New energies* Retail Lubricants Grow value Develop non-fuel revenues through premium products 2.0 B2B New Energies Build on 1M customers portfolio for Mobility to develop low-carbon markets 2020 2026 * Electric-mobility, Natural Gas for Vehicle (NGV), LNG bunke
Slide 47: September 2021 - Strategy and Outlook
47 September 2021 - Strategy and Outlook
Slide 48: China LNG demand growth
LNG supply & demand Mt/y +5-7%/y demand 2020-25 +10%/y China LNG demand growth Pre-FID demand Under construction 400 2015-19 H1 2021 vs H1 2019 + Existing supply 200 2020-25 2015 2019 2020 2025 47 September 2021 - Strategy and Outlook
Slide 49: LNG global portfolio
LNG global portfolio Yamal LNG Snøhvit LNG Arctic LNG 2 (1) Rotterdam Cove Point LNG Skikda LNG sales by 2025 Arzew ELNG Cameron LNG + T4 (2) ECA LNG (1) Sohar LNG (2) Sabine Pass LNG Qatargas Qalhat LNG & Oman LNG Freeport LNG Adnoc LNG Oman Yemen LNG Equity production Nigeria LNG + T7 (1) Singapor
Slide 50: LNG production
LNG Production Mt/y 40 x2 Russia giant Mozambique Russia giant Mozambique giant 30 Arctic resources Area-1 resources Arctic resources Area-1 resources Mozambique LNG, NLNG T7 20 Arctic LNG 2, ECA US Brownfield trains US Brownfield trains 10 (Cameron, ECA) Papua LNG (Cameron, ECA) 2020 2025 2026 2030
Slide 51: Developing new markets through local partnerships
Developing new uses and markets through local partnerships India Adani up to 3 Mt/y China Shenergy up to 1.4 Mt/y Brazil Compass up to 3 Mt/y Bunkering CMA-CGM 0.6 Mt/y 50 September 2021 - Strategy and Outlook
Slide 52: Creating value from global scale and arbitrage
Creating value from global scale and arbitrage LNG sales CFFO Mt/y B$ by 2025 Spot Trading upside +5$/Mbtu NBP 40 Supply from Asset +5$/Mbtu 4 60 $/b upside JKM 3rd party Supply from 50 $/b 20 equity JVs 50 $/b 50 $/b* Equity JV sales to 3rd party 2021 2025 2026 2021 2025 2025 Brent 67 50/60 50 NBP
Slide 53: Priority on methane emissions reduction
LNG plants Gas fields LNG transport Avoid & reduce Technology Priority on Methane emissions reduction Partnerships - Electrification, energy efficiency & CCS Relentless carbon footprint reduction Coalition for the Energy of the Future Ambition to reduce full chain carbon intensity by 20% by 2030 52
Slide 54: Biogas development in Europe and US
Europe ~1.3 TWh/y by 2025 US ~0.7 TWh/y by 2025 N°1 in France (>10% market share) Teaming up with Clean Energy TotalEnergies Biogaz France 50/50 JV with Clean Energy 500 GWh/y biogas production (7 plants) Integrated strategy: renewable gas production, 400 GWh/y in development (4 advanced projects) b
Slide 55: Kick-start clean hydrogen and develop mass production
1 Kick-start clean hydrogen to cover our refining demand 2 Develop mass production of low-cost carbon-free H2 Blue H2, NH3 from competitive gas (partnership with Novatek in Russia) Green H2 in areas with low cost of renewable electricity R&D on H2/ammonia/e-fuels as transportation carrier 3 Act on h
Slide 56: Scaling profitable global business
Scaling profitable global business 56 September 2021 - Strategy and Outlook
Slide 57: Renewables growing in all regions
Global solar and wind capacity Capacity increase by technology 2020-30 GW GW > 4500 RoW GW Solar South America Onshore Wind RoAsia Offshore Wind India 4,000 USA Europe China 2,000 2020 2025 2030 Renewables growing Solar capturing 60% / in all regions Wind 40% of growth Reference:TotalEnergies Outloo
Slide 58: Renewable projects in operation and construction
Presence in operation and/or construction Seagreen, 1140 MW Champagne Conlinoise, 17 MW M-Kat, 100 MW Nanao, 27 MW Oberon, 194 MW Yunlin, 640 MW Santa Isabel, 190 MW Kiamal, 257 MW Vientos Los Hercules, 97 MW Prieska, 86 MW Al Kharsaah, 800 MW Kamuthi, 779 MW 57 September 2021 - Strategy and Outlook
Slide 59: Gross installed capacity
Gross installed capacity GW 35 GW Storage Ramping up 2025 ~6 GW ~65% 30 Wind 2024 20 2023 > 10 per year from 2022 of 35 GW already GW 2022 Solar covered by PPA 10 2021 In construction and 2025 development* * As of June 30, 2021 58 September 2021 - Strategy and Outlook
Slide 60: 35 GW by 2025, 50 GW by 2030
100 by 2030 75 Selective M&A ~3% of global market growth Building on offshore wind 35 GW Develop new geographies Building on TotalEnergies 50 global footprint Strong renewable presence 25 Replicating 2021-25 growth 6 GW per year in Europe, India, US 50 new renewable explorers based in 50 legacy coun
Slide 61: A global footprint to build a unique renewables portfolio
Renewable explorers network THE REX NETWORK Countries including some Total Eren presence new local explorers of the REX network operational by end-2021 SCOPE OF ACTIVITIES A global footprint to build a unique renewables portfolio Solar Wind Energy storage 60 September 2021 - Strategy and Outlook
Slide 62: Offshore wind: USA, Europe, Asia
USA Europe Asia JV with EnBW for next round on United Kingdom South Korea US East Coast (offshore wind Seagreen: up to 1.5 GW Bada > 2 GW development supported by COD 2023-24 Target FID 2024 (0.5 GW) Biden policy) 50% TotalEnergies / 50% SSE EBL obtained mid-2021 50% TotalEnergies / 50% GIG JV with
Slide 63: Greening all power used by European and US operations
2020 2021 2025 Greening all power used by Already announced Target our European and US operations 62 September 2021 - Strategy and Outlook
Slide 64: Portfolio mix and equity IRR
> 10% 1 Deregulated markets 8-10% Equity IRR post farm-down Growing power trading teams to enhance returns through integration 4-6% 2 Leveraging Corporate PPA opportunity 3 Regulated markets > 15% Equity IRR post farm-down Accessing higher return markets thanks 4 to TotalEnergies’ global footprint T
Slide 65: Developing customer portfolio
Developing customer portfolio CCGT Trading & aggregation Supply Europe USA Regulated markets Developing major trading 9 M Customers capacities in main deregulated markets 80 TWh Firm power France, Spain, Belgium, UK 2025 data * Gross capacity 64 September 2021 - Strategy and Outlook
Slide 66: Growing electricity production 4x over 2020-25
Electricity production (Company share)* > 50 Renewables TWh CCGT 2021-2025 50 Cumulative Capex: EBITDA* ~15 B$ ~ 3.5 B$ in 2025 Gross investments: ~35 B$ ~ 20 TWh 25 NOI CFFO ~1.5 B$ in 2025 ~ 2 B$ in 2025 2020 2021 2025 Growing production 4x Toward positive net cash over 2020-25 flow by 2030 * From
Slide 67: September 2021 - Strategy and Outlook
67 September 2021 - Strategy and Outlook
Slide 68: EBITDA and gearing versus Majors and Utilities
Ebitda 2021* versus Majors and Utilities B$ Majors Utilities 50 25 0 Gearing 2Q21 vs. Majors and Utilities* % 60% Majors Utilities 30% 0% *2x 1H 2021. Majors: BP, Shell, Chevron, Exxon. Utilities: Enel, Engie, Iberdrola, EnBW, Nextera 67 September 2021 - Strategy and Outlook EBITDA estimated for BP,
Slide 69: Capital investment and capital employed: 50% growth, 50% maintenance
Capital Investment* Capital Employed B$ B$ 75 17.4 13-15 Exploration & Production 15.6 13 12-13 50 LNG 25 Downstream Renewables & Electricity 0 2018 2019 2020 2021 2022-25 2015 2020 2025 50% growth - 50% maintenance * Capital investment = Organic Capex + acquisitions – disposals 68 September 2021 -
Slide 70: Delivering >1 B$ additional savings by 2023
Opex saving vs. 2019 base 3 2.3 Digital OneTech B$ 2 1.6 B$ Optimizing Highgrading 1.1 operations portfolio B$ & logistics 1 Exploration Exercising and production Streamlining contract HQ staff flexibility 0 2020 2021 2023 Delivering > 1 B$ additional savings by 2023 69 September 2021 - Strategy and
Slide 71: Underlying cash flow growth and ROE
Debt adjusted cash flow (DACF) B$ +5 B$ underlying cash flow growth 30 2021-26 supported by: 60 $/b 60 $/b Renewables and Power: +1.5 B$ LNG: +1.5 B$ 20 50 $/b 50 $/b ROE > 12% @ 50$/b from 2025 50 $/b* Significant upside to oil and gas prices 10 2021 2025 2026 +3.2 B$ CFFO for 10 $/b crude price Br
Slide 72: Maintaining discipline
Maintaining discipline Increase supported by Grade A credit rating Sharing up to 40% 13-15 B$ 2022-25 underlying long-term surplus cash flow cash flow growth above 60 $/b Renewables & Power Supporting dividend Gearing < 20% 1.5 B$ in 4Q 2021 ~ 3 B$/y through the cycle 71 September 2021 - Strategy an
Slide 73: TotalEnergies Investment Case
Strong balance sheet with low cost of debt Engaged in profound transformation Strong and reliable cash generation Fast growing renewables & electricity business Capacity to maintain dividend through the cycle Well advanced in emission reduction Recognized ESG leader TotalEnergies Investment Case Low
Slide 74: Disclaimer and forward-looking statements
The entities in which TotalEnergies SE directly or indirectly owns a shareholding are separate and independent legal entities. The terms These adjustment items include: “TotalEnergies”, “TotalEnergies company” and “Company” used in this document are generic and used for convenience to designate (i)
Slide 75: For more information go to
Corporate Communications TOTAL SE 2, place Jean-Millier 92400 Courbevoie, France Tel.: +33 (0)1 47 44 45 46 Share capital: €6,601,073,322.50 Registered in Nanterre: RCS 542 051 180 For more information go to