Exxon Mobil Corporation · NYSE:XOM
Exxon Mobil — Investor Day (March 2010)
105 slides from Exxon Mobil's investor day presentation, Mar 17, 2010
Slide 1: March 11, 2010 Analyst Meeting
March 11, 2010 New York Stock Exchange Exhibit 99.2
Slide 2: Cautionary Statement
Cautionary Statement Outlooks, projections, estimates, targets, business plans, and other statements of future events or conditions in this presentation or the subsequent discussion period are forward-looking statements. Actual future results, including demand growth and mix; ExxonMobil’s own produc
Slide 3: Agenda
Agenda Agenda AM Welcome David Rosenthal Vice President, Investor Relations Corporate Rex Tillerson Chairman and CEO Upstream Mark Albers Senior Vice President Andy Swiger Senior Vice President Downstream Don Humphreys Senior Vice President Mike Dolan Senior Vice President Chemical Mike Dolan Senior
Slide 4: ExxonMobil 2010 Analyst Meeting
ExonMobil Taking on the world’s toughest energy challenges 2010 Analyst Meeting |
Slide 5: 2009 Results
2009 Results * Includes dividends and share purchases to reduce shares outstanding **Determined on ExxonMobil’s basis and including asset sales ExxonMobil delivered strong results during a year of significant challenges. Industry-leading safety performance Solid financial performance • Earnings $19.
Slide 6: Safety
Safety 0.0 0.1 0.2 0.3 0.4 '05 '06 '07 '08 '09 2009 safety performance continued to lead the industry Our Vision: Nobody Gets Hurt Committed to maintaining and improving our performance Lost Time Incident Rate U.S. petroleum industry contractor benchmark* U.S. petroleum industry employee benchmark*
Slide 7: Environmental Performance
Environmental Performance '05 '06 '07 '08 '09 Strong environmental management Improving energy efficiency Reducing flaring, spills, and releases Protect Tomorrow. Today. Hydrocarbon Flaring from Upstream Oil and Gas Production We are committed to reducing our impact on the environment while expandin
Slide 8: Earnings
Earnings '05 '06 '07 '08 '09 Industry-leading results in all business segments Commitment to operational excellence Capitalizing on competitive advantages ExxonMobil earned $19.3 billion in 2009 during a period of volatile and challenging industry conditions. Earnings Excluding Special Items $ B Ups
Slide 9: Return on Capital Employed
Return on Capital Employed XOM CVX RDS BP Strength of integrated portfolio Consistent execution of business model Disciplined investment through the business cycle Return on Average Capital Employed* Upstream Downstream Chemical Percent * Competitor data estimated on a consistent basis with ExxonMob
Slide 10: Cash Flow
Cash Flow $28.4 billion in 2009 Reduction in-line with lower commodity prices and margins Funded all attractive investments and dividends * Excludes asset sales Cash Flow from Operating Activities* $ B Strong cash flows underpin our investment plans and shareholder distributions. '05 '06 '07 '08 '09
Slide 11: Capex
Capex '05 '06 '07 '08 '09 Capex by Business Line $ B We invested record levels of Capex, despite the economic downturn, growing the business for the long term. Invested over $110 billion during the past five years Maintained capital efficiency Executing business plans Upstream Downstream Chemical
Slide 12: Dividends
Dividends Dividend growth through the cycle Per share increase of 57% over the last five years • Average growth 9.4% per year • U.S. inflation average 2.6% per year* Annual per share increases since 1983 We provide reliable and growing dividends through the business cycle. Dividends per Share $ 0.00
Slide 13: Share Purchases
Share Purchases $119 billion distributed over the last five years Reduced shares outstanding by 26% since the beginning of 2005 Effective way to distribute value for shareholders In 2009, we distributed $18 billion to shareholders through share purchases. Cumulative Purchases to Reduce Shares Outsta
Slide 14: Increasing Ownership
Increasing Ownership -20 -10 Production Proved Reserves Refinery Throughput Strong per share growth in key business metrics Ahead of competition Growth per Share Since 2005* Strong business results and share purchases increase per share ownership for our shareholders. Percent XOM BP CVX RDS ** * Com
Slide 15: Value per Share
Value per Share '05 '06 '07 '08 '09 2009 EPS $3.98 per share EPS 44% higher than without share purchases* Ongoing benefit to all shareholders Percent Impact of Share Purchases on EPS Since ExxonMobil Merger Earnings per share is enhanced by our share purchase program. * Average shares outstanding re
Slide 16: Business Environment
Business Environment Financial markets stabilizing Pace of economic recovery uncertain Near-term supply / demand balance linked to economic recovery Uncertain commodity prices and depressed margins Some competitors re-evaluating near-term business plans ExxonMobil is well-positioned for the unique s
Slide 17: Energy Demand to 2030
Energy Demand to 2030 Global energy mix will remain relatively stable to 2030 • Fossil fuels continue to provide Strong growth in natural gas • Driven by power generation Energy Demand Quadrillion BTUs Oil Coal Gas Other* '05–'30 Annual Growth Rate to 2030 0.5% 1.8% 1.2% 1.9% * Other includes nuclea
Slide 18: Energy Demand to 2030
Energy Demand to 2030 Global energy mix will remain relatively stable to 2030 • Fossil fuels continue to provide about 80% of the world’s energy Strong growth in natural gas • Driven by power generation Energy savings in 2030 about twice the growth in projected energy use Energy Demand Quadrillion B
Slide 19: Investment Plan
Investment Plan '08 '09 '10 '11 - '14 Average $ B Capex by Business Line Estimate Estimate Range Progressing large inventory of high -quality projects Aggressively pursuing cost reduction opportunities Delivering advantaged projects Upstream Upstream Downstream Downstream Chemical / Other Chemical /
Slide 20: ExxonMobil Strengths
ExxonMobil Strengths Portfolio quality Global integration Discipline and consistency Value maximization Long-term perspective Industry leadership through the business cycle ExxonMobil’s strengths form the foundation of our business and sustain our success. Underpinned by superior technology, organiz
Slide 21: Upstream Overview
Upstream Overview Mark Albers Senior Vice President Andy Swiger Senior Vice President
Slide 22: 2009 Upstream Highlights
2009 Upstream Highlights Earnings $17.1 B ROCE 23.4 % Production volumes 3.9 MOEBD Resource adds 2.9 BOEB Proved reserves adds* 2.0 BOEB Capex $20.7 B We maintained our industry-leading earnings position, delivered superior returns, and added profitable volumes to our resource base. * ExxonMobil bas
Slide 23: Upstream Strategies
Upstream Strategies Ensure operational integrity: best-in-class performance Identify and selectively pursue the highest-quality exploration opportunities Invest in projects that deliver superior returns Maximize resource value through highest-impact technologies and integrated solutions Maximize pro
Slide 24: 2009 Resource Base
2009 Resource Base Unconventional Gas Arctic High-quality resources in all geographic regions Continued to grow our resource base through: • By-the-bit drilling success • Undeveloped resource capture • Improved recovery from existing fields ExxonMobil has the industry’s largest, high-quality resourc
Slide 25: 2009 Resource Base Increase
2009 Resource Base Increase U.S. Gulf of Mexico Canada Horn River Canada Athabasca We added 3.9 BOEB to our resource base from consistent by-the-bit success, undeveloped resource capture, and additional field recovery. U.S. West Texas U.S. Marcellus U.K. North Caspian Canada Hibernia Angola Nigeria
Slide 26: 2009 Acreage Acquisition
2009 Acreage Acquisition Norway Canada Horn River Poland Turkey Indonesia Onshore Indonesia Offshore Vietnam We acquired material acreage positions across the world in highly prospective plays. Heavy Oil/Oil Sands Unconventional Gas Conventional Deepwater 2009 Acreage Captures Hungary Canada Athabas
Slide 27: Key Exploration Wells
Key Exploration Wells We are executing a major exploration program focused on high-potential opportunities. Planned wells 2010 / 2011 Brazil Canada Orphan Australia Angola Nigeria Indonesia Onshore Libya Indonesia Offshore Turkey Philippines U.S. Eagle Ford U.S. Gulf of Mexico Canada Horn River U.S.
Slide 28: U.S. – Gulf of Mexico
U.S. – Gulf of Mexico Keathley Canyon Walker Ridge Amery Terrace Sigsbee Escarpment Green Canyon Garden Banks 2.2 million net acres with exposure to Pliocene, Miocene, and Paleogene plays Successful Hadrian discovery Progressing Julia development planning Drilling and seismic acquisition program in
Slide 29: U.S. – Marcellus
U.S. – Marcellus Growing acreage position • 290K gross acres Cost effective acquisition Active exploration/appraisal program • Production testing under way We have established a material position in this high-quality U.S. shale gas play.
Slide 30: Canada – Horn River
Canada – Horn River Acquisition cost 40% less than industry average Ramping up drilling and seismic activities Building infrastructure for year-round access We achieved early entry and have established the leading acreage position in this emerging high-potential shale gas basin.
Slide 31: Canada – Firebag
Canada – Firebag Firebag North acquisition, extended existing strong position Potential synergies with Kearl Attractive acquisition cost under $0.20/OEB Active winter exploration program Successful acquisition of additional oil sands acreage in a world-class resource area. Firebag North Firebag Kear
Slide 32: Philippines – Sulu Sea
Philippines – Sulu Sea Successful exploration in frontier basin utilizing our extensive deepwater capabilities. Successful Dabakan-1 wildcat well • Encountered hydrocarbons in multiple reservoir intervals Multiple prospects remaining to be drilled • Additional wildcat well in 2010
Slide 33: Black Sea Exploration
Black Sea Exploration ExxonMobil Acreage We have established a significant acreage position in the Black Sea and have commenced an active deepwater exploration program. Largest IOC acreage holder Completed large-scale seismic surveys Multiple exploration play tests planned for 2010/2011 Turkey Russi
Slide 34: Major Project Inventory
Major Project Inventory Major Project Distribution by Region Americas Africa Asia Pacific Russia / Caspian Middle East Europe Percent, number of projects Develop 24 net BOEB, across all regions and resource types Industry-leading project management capabilities Cost-effective implementation High-imp
Slide 35: 2009 Project Start-ups
2009 Project Start-ups Delivered eight major start-ups with forecast production of 400 KOEBD net in 2010. Tyrihans South Hook LNG Terminal Qatargas 2 Train 5 RasGas Train 6 Piceance Phase 1 Qatargas 2 Train 4 Adriatic LNG Terminal Al Khaleej Gas Phase 2
Slide 36: Project Execution
Project Execution Our rigorous, high-quality project management processes consistently deliver industry-leading project execution performance. Unmatched ability to implement complex projects Deliver projects faster than our competitors Track record of superior cost and schedule delivery ExxonMobil O
Slide 37: Near-Term Project Start-Ups
Near-Term Project Start-Ups Twelve major project start-ups planned between 2010 and 2012. Arctic Sakhalin-1 Odoptu Deepwater Pazflor LNG RasGas Train 7 Deepwater Kizomba Satellites Conventional Kipper / Tuna LNG Golden Pass Terminal Oil Sands Kearl Phase 1 Conventional Nigeria Satellites Ph 1
Slide 38: Major Project Production Outlook
Major Project Production Outlook QG 2 Train 4 & 5, RG Train 6, AKG Ph 2 RG Train 7, Kearl Ph 1 Kashagan Ph 1 Syncrude Aurora Nth PNG LNG Kearl Ph 2 Gorgon Jansz 0.0 0.4 0.8 1.2 1.6 '09 '10 '11 '12 '13 '14 '15 Significant long-plateau production contribution from our major projects supports our long-
Slide 39: Canada – Kearl Oil Sands Project
Canada – Kearl Oil Sands Project Mining Treatment Oil Sands Diluted Bitumen Market 2012 - Phase 1 Phase 3 Phase 2 The efficient development of Kearl, coupled with the highest-quality resource, delivers the lowest-cost oil sands development. Highest -quality oil sands resource Proprietary bitumen tre
Slide 40: Papua New Guinea – PNG LNG Project
Papua New Guinea – PNG LNG Project High-quality 9 TCF gross resource Two-train 6.6 MTA LNG plant Secured long-term SPAs Anticipate start-up in 2014 We will develop the PNG LNG project utilizing our global LNG experience, and grow our presence in the attractive Asia Pacific gas market.
Slide 41: Indonesia – Banyu Urip Project
Indonesia – Banyu Urip Project Achieved early oil start-up in August 2009, 20 KBD capacity Full field development to deliver 165 KBD Evaluating gas commercialization We are progressing full field development of this significant conventional oil project in Indonesia.
Slide 42: Upstream Research and Development
Upstream Research and Development Delivering advantaged technologies across our business and progressing significant breakthrough research. Recently commercialized breakthrough technologies delivering benefits Developing high-reward technologies for the future Imaging Oil Shale Extraction Drilling F
Slide 43: Resource Recovery
Resource Recovery Reservoir management best practices applied globally Technology application • Reservoir characterization • Improved reservoir recovery • Efficient development and operation Global opportunity prioritization delivering profitable volumes Proven track record of maximizing recovery th
Slide 44: Abu Dhabi – Upper Zakum
Abu Dhabi – Upper Zakum Pursuing innovative development approach • Artificial islands • Extended-reach drilling • Targeted well completions ExxonMobil Technology Center established, co-located with the operating organization Applying high-impact technology and cost effective design to maximize recov
Slide 45: Iraq – West Qurna-1
Iraq – West Qurna-1 Signed agreement in January 2010 • Effective date March 1, 2010 Completed initial production tests Leveraging global experience to achieve significant production ramp- up ExxonMobil is well-positioned to redevelop this field to achieve its maximum potential. Iraq West Qurna-1
Slide 46: Capital Spending
Capital Spending Pursuit of quality exploration opportunities Disciplined project investment Selective investment in existing operations to add value ExxonMobil’s financial strength allows ongoing investment in our portfolio, positioning us for future growth. $ B Upstream Capex Exploration Major New
Slide 47: Operational Excellence
Operational Excellence Standardize Integrate Operate and Maintain Plan and Execute - Global best practice deployment delivers superior reliability and life cycle cost performance. Achieving superior reliability • Operated uptime 2% higher than assets operated-by-others Relentless focus on cost manag
Slide 48: Production Outlook
Production Outlook Project Volumes Base Production Long-Plateau '09 '10 '11 '12 '13 Production outlook delivered by strong base performance, high-quality projects, and new resource potential. '09 '10 '11 '12 '13 Total Production Outlook MOEBD, net New Resource Additions Conventional Flow Streams New
Slide 49: 2009 Gas Marketing Activities
2009 Gas Marketing Activities New SPA’s Sales Start -ups Project Milestones Major 2009 Activities Alaska Pipeline Project Piceance Ph 1 South Hook Terminal Adriatic LNG Terminal PetroChina, Sinopec Petronet Tepco, Osaka Gas CPC Gorgon Jansz Qatar Mega - Trains, Al Khaleej Ph 2 Nigeria Domestic Power
Slide 50: Gas Marketing Position
Gas Marketing Position Significant gas portfolio of quality operations and advantaged projects, spans all major markets, resource types, and contract structures. Projected Gas Sales Portfolio 69 TCF proved gas reserves* Diverse global portfolio Range of contracts ensures market access optionality Ad
Slide 51: Reserves Replacement
Reserves Replacement * Reserves based on SEC pricing bases, includes oil sands and equity companies; excludes asset sales. ** Costs incurred in property acquisition & exploration plus development activities, divided by proved oil-equivalent reserves additions, including purchases. Competitor data es
Slide 52: Cost Management
Cost Management Mature contracting strategies • Capturing savings • Mitigated market impact Underpinned by operational excellence and disciplined approach We have effectively mitigated cost growth through the business cycle, delivering superior cost management. '04 '05 '06 '07 '08 Total Costs per OE
Slide 53: Growth per Share
Growth per Share Significantly enhanced share value over 5-year period Annual average per share increase: • Production 6% • Reserves 8%** Underpinned by superior and consistent reserves replacement Delivered best production growth per share versus competition. '05 '06 '07 '08 '09 Production per Shar
Slide 54: Earnings per Barrel
Earnings per Barrel * Competitor data estimated on a consistent basis with ExxonMobil, and based on public information Strength of portfolio Benefit of disciplined approach Delivered over $2/BBL above nearest competitor over 5-year period Underlying profitability of portfolio continues to ensure ind
Slide 55: Upstream Return on Capital Employed
Upstream Return on Capital Employed * Competitor data estimated on a consistent basis with ExxonMobil, and based on public information Our disciplined approach continues to deliver industry-leading returns through business cycles. 2009 ROCE 23% Maintained consistent leadership position Underpinned b
Slide 56: LNG
LNG ExxonMobil is a significant LNG producer with a strong global position. Adriatic LNG Terminal, Italy
Slide 57: Unconventional Gas
Unconventional Gas Our active exploration is building a leading global unconventional gas portfolio, and we are leveraging our technology to maximize asset value. Horn River Basin, Canada
Slide 58: Acid/Sour Gas
Acid/Sour Gas Controlled Freeze Zone technology has the potential to commercialize additional sour gas resources and assist meeting the global GHG challenge. Controlled Freeze Zone ™ Demonstration Plant, Wyoming, U.S. TM
Slide 59: Arctic
Arctic We are well-placed to deliver our portfolio of projects, applying our experience and proprietary technology in this challenging environment. Sakhalin-1 Odoptu, Russia
Slide 60: Heavy Oil / Oil Sands
Heavy Oil / Oil Sands We have extensive oil sands experience and a high-quality project portfolio. Cold Lake, Alberta, Canada
Slide 61: Deepwater
Deepwater Our industry-leading deepwater development capabilities will be deployed to commercialize discoveries from our active exploration program. Kizomba C Mondo FPSO, Angola
Slide 62: Conventional
Conventional Our attractive conventional assets are developed efficiently to maximize value, with best practices leveraged globally. Jerneh B, Malaysia
Slide 63: Upstream Summary
Upstream Summary Largest, highest-quality opportunity portfolio Successfully growing the portfolio Lowest life-cycle cost, exploration to production Proprietary suite of industry-leading technologies Uniquely positioned for attractive growth ExxonMobil is well-positioned to continue to deliver super
Slide 64: Downstream Overview
Downstream Overview Don Humphreys Senior Vice President Mike Dolan Senior Vice President
Slide 65: 2009 Downstream Highlights
2009 Downstream Highlights ExxonMobil delivers industry-leading Downstream ROCE. Earnings $ 1.8 B ROCE % Refinery Throughput 5.4 MBD Petroleum Product Sales 6.4 MBD Capex $3.2 B
Slide 66: Downstream Industry Environment
Downstream Industry Environment OECD Non-OECD '05 '10 '15 '20 '25 '30 Transportation Energy Demand MOEBD Source: ExxonMobil Outlook for Energy: A View to 2030 Long-term demand growth driven by developing countries Investments in new capacity impacting supply / demand balances Significant regulatory
Slide 67: Downstream Strategies
Downstream Strategies Maintain best-in-class operations, in all respects Provide quality, valued products and services to our customers Lead industry in efficiency and effectiveness Capitalize on integration with other ExxonMobil businesses Selectively invest for resilient, advantaged returns Maximi
Slide 68: Downstream Strengths
Downstream Strengths Our Downstream strengths provide long-term competitive advantage. Technology Leadership Integration Capital Discipline Global Functional Organization Operational Excellence Efficiency
Slide 69: Downstream Business Overview
Downstream Business Overview Refining & Supply Fuels Marketing Lubricants & Specialties Global refiner Highly integrated sites Diesel & cogen investments 6.3 MBD refining capacity Diverse portfolio U.S. retail transition Robust B2B businesses 28,000 retail sites Global brands Synthetic technology Gr
Slide 70: Fuels Marketing
48% 8% 7% 37% Fuels Marketing Diverse sales channels provide secure, ratable, and profitable outlets for our refineries. Access to broad spectrum of customer channels Global systems, work processes, and best practices Integrated Business Teams drive highest -value outlets Global Fuels Marketing Sale
Slide 71: Operating Cost Efficiency – Fuels Marketing
Operating Cost Efficiency – Fuels Marketing Operating Expense Global resources drive lower operating expenses • Functional organization • Systems • Processes Continuous focus on optimizing productivity Global solutions enhance ability to meet customer needs Indexed ExxonMobil’s competitive cost adva
Slide 72: Capital Productivity – Fuels Marketing
Capital Productivity – Fuels Marketing Average Capital Employed Indexed Productivity (Sales/Avg. Capital Employed) Indexed Asset optimization initiatives and productivity increases underpin improved results. '05 '06 '07 '08 '09 '05 '06 '07 '08 '09 Focusing on long-term, sustainable growth areas High
Slide 73: Lubricants & Specialties
Lubricants & Specialties Select Market Investments Efficient global business models Product Technology Basestock Manufacturing Well-positioned to capture value growth Integration advantages • Refining • Chemical Our Lubricants & Specialties business adds value by leveraging integration, technology,
Slide 74: Brands and Technology – Lubricants & Specialties
Brands and Technology – Lubricants & Specialties Source: ExxonMobil estimates based on available industry data and public information; YE Market leader in high-value synthetic lubes Legacy of technology leadership Global and reliable distribution network Globally recognized brands and leading-edge t
Slide 75: Operating Efficiency – Lubricants & Specialties
Operating Efficiency – Lubricants & Specialties -60 -40 -20 '05 '07 '09 Operational excellence Optimized asset base Consistent global processes Productive world-class workforce Operating Efficiencies Number, Percent Change Our focus on operating efficiencies drives long-term competitive advantage. P
Slide 76: Growth – Lubricants & Specialties
Growth – Lubricants & Specialties ExxonMobil Industry ExxonMobil Industry Synthetic Lubricants Sales Growth Percent Change versus 2005 Source: ExxonMobil estimates based on available industry data and public information * Passenger, commercial, and industrial finished lubricants Developing Markets S
Slide 77: Refining & Supply
Refining & Supply XOM BP RDS Industry Average Average Refinery Size KBD Refineries 60% larger than industry* • Most conversion capacity • High -performing assets • Efficient and cost effective • Disciplined operations • Proven project management skills Largest lube basestock capacity ExxonMobil is t
Slide 78: Integration – Refining & Supply
Integration – Refining & Supply Integration with Chemicals or Lubes Percent Integrated molecular optimization Higher-value products Common site management, utilities, and infrastructure Our integration with Chemicals or Lubes reduces costs and increases margins. XOM RDS Industry BP Source: Calculate
Slide 79: Feed Flexibility – Refining & Supply
Feed Flexibility – Refining & Supply Challenged Crudes* Throughput, Indexed * Crudes discounted in market due to properties that make them challenging to process Lower-cost feedstocks improve margins Technology advantages • Virtual molecular assays • Expanding feed flexibility Processing 2X industry
Slide 80: Operating Cost Efficiency – Refining & Supply
Operating Cost Efficiency – Refining & Supply '04 '06 '08 '09 Source: Solomon Associates fuels refining benchmarking data through '08 available on even years; data at constant foreign exchange rates and energy prices; ExxonMobil estimate for '09; Data indexed to ExxonMobil ('04) Unit Cash Operating
Slide 81: Energy Efficiency – Refining & Supply
Energy Efficiency – Refining & Supply '04 '06 '08 '09 Source: Solomon Associates fuels refining benchmarking data through '08 available on even years; ExxonMobil estimate for '09; Data indexed to ExxonMobil ('04) Energy Intensity ExxonMobil Cogeneration investments Global Energy Management System En
Slide 82: Personnel Efficiency – Refining & Supply
Personnel Efficiency – Refining & Supply '04 '06 '08 '09 Personnel Indexed ExxonMobil Industry Our scale, global processes, and talented workforce drive superior productivity. High-quality workforce Extensive automation Global support / networks Standardized, state-of-the-art training Source: Solomo
Slide 83: Downstream Technology Leadership
Downstream Technology Leadership Legacy of technology leadership Near-term technologies include: • Advanced catalysts and processes • Heavy oil characterization and conversion • Energy efficiency / management Longer-term opportunities include: • Gasification • On-board hydrogen generation • Second g
Slide 84: Downstream Portfolio Management
Downstream Portfolio Management Average Capital Employed $B '99 '04 '09 We actively manage our capital employed through all parts of the business cycle. Disciplined capital management Robust portfolio management processes Significant portfolio activities* • 10 refineries • 5,000 miles of pipeline as
Slide 85: Downstream Return on Capital Employed
Downstream Return on Capital Employed '00 '02 '04 '06 '08 '09 Proven business strategies Leveraging corporate strengths Well-managed portfolio * Competitor data estimated on a consistent basis with ExxonMobil, and based on public information ** BP, RDS and CVX ExxonMobil Percent Return on Average Ca
Slide 86: Chemical Overview
Chemical Overview Mike Dolan Senior Vice President
Slide 87: 2009 Chemical Highlights
2009 Chemical Highlights One of the three largest chemical companies in the world Earnings $2.3 B ROCE 13.9 % Sales volume 24.8 MT Capex $3.1 B ExxonMobil Chemical financial performance exceeded our major chemical competitors.
Slide 88: Global Demand
Global Demand -3 '95 '00 '05 '10 '15 Global demand growth above GDP Driven by penetration into new markets and material substitution • Significant sustainability benefits Asia Pacific 60% of future growth Our products feed a wide range of growing markets and applications. Commodities Demand and Glob
Slide 89: Chemical Industry
Chemical Industry '90 '95 '00 '05 * ExxonMobil estimates; Includes Polyethylene, Polypropylene, and Paraxylene Industry recovering from weak demand Additional capacity coming on stream Near -term margins weakened Chemical industry capacity utilization and margins are cyclical. Key Chemical Commodity
Slide 90: Chemical Strategies
Chemical Strategies Unique portfolio of global businesses Integration across ExxonMobil operations Relentless focus on operational excellence Disciplined investment in advantaged projects Technology leadership The consistent execution of our strategies over multiple business cycles is the foundation
Slide 91: Business Portfolio
Business Portfolio '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 Commodities capture upside earnings potential at peak of cycle Specialties provide stable earnings base Over 90% of our businesses have a #1 or #2 global market position Our portfolio captures the benefits of scale from commodities while max
Slide 92: Integration and Feed Flexibility
Integration and Feed Flexibility Our ability to extract value from integration is a competitive advantage. Crude and Feedstocks Commodities and Specialties Molecules upgraded to highest value Assets with unparalleled feed flexibility Shared facilities / best practices Refinery Chemical Plant
Slide 93: Operational Excellence
Operational Excellence '03 '05 '07 '03 '05 '07 Continuous improvement across business cycles Operating Costs * North America Steam Cracker Fixed Costs, Indexed ExxonMobil Industry Energy Intensity * Global Steam Cracker Energy Intensity, Indexed ExxonMobil Industry Global functional organization lev
Slide 94: Asia Pacific Growth
Asia Pacific Growth XOM RDS TOT CVX DOW We have been a key supplier in Asia Pacific and are increasing our capacity to meet future demand growth. Asia Pacific / Middle East Capacity Ethylene & Paraxylene Million Metric Tons Asia Pacific 60% of future growth Middle East exports strategic to support A
Slide 95: Advantaged Growth Projects
Advantaged Growth Projects Lower-Cost Processes Premium Products Advantaged Feeds Our major investments maximize returns through a unique combination of advantaged feeds, lower-cost processes, and premium products. Singapore Expansion Significant feed flexibility Qatar Petrochemical Complex Ethane S
Slide 96: Chemical Technology
Chemical Technology Advantaged feeds • High level of feed flexibility Lower-cost manufacturing processes • Advanced processes and catalysts • Improved energy efficiency and reliability Premium products • Innovative, higher-value products Development and deployment of industry-leading chemical techno
Slide 97: Chemical Return on Capital Employed
Chemical Return on Capital Employed '95 '97 '99 '01 '03 '05 '07 '09 Consistent strategy execution Unique scale and integration Unmatched financial performance ExxonMobil Chemical has outperformed our major competitors across the last cycle. Return on Average Capital Employed* Percent ExxonMobil Majo
Slide 98: Summary
Summary Businesses optimized together to maximize shareholder value Combined – average annual results • $8.8B earnings • 22% ROCE ExxonMobil has unequaled performance across the Downstream and Chemical platforms. * ** *** Return on Average Capital Employed* - Percent XOM XOM Downstream Chemical Comp
Slide 99: Summary
Summary Rex Tillerson Chairman and CEO
Slide 100: Proven Business Model
Proven Business Model ExxonMobil’s business model delivers superior results and provides a unique, competitive advantage.
Slide 101: Risk Management
Risk Management Financial Geopolitical Environmental Technology We manage risk with well-developed processes and Board oversight.
Slide 102: Shareholder Value
Shareholder Value -2 20 years 10 years 5 years * RDS, CVX and BP Percent Annualized Shareholder Returns Financial results and stock market returns are best viewed over a longer time-frame, consistent with our investment horizon. ExxonMobil Competitor Average* S&P 500
Slide 103: ExxonMobil
ExxonMobil Industry-leading portfolio of businesses and assets Disciplined and consistent approach across the business Commitment to technology leadership Superior financial flexibility Relentless focus on maximizing long-term value Uniquely well-positioned for the future ExxonMobil is strong, resil
Slide 104: XTO Energy Transaction – Strategic Incentives
XTO Energy Transaction – Strategic Incentives The agreement between ExxonMobil and XTO Energy will provide long-term benefits to shareholders in both companies. Outstanding resource base Extensive unconventional technical capabilities and operating expertise Complements ExxonMobil’s strengths Signif
Slide 105: XTO Energy Transaction – Status Update
XTO Energy Transaction – Status Update The regulatory clearance process is proceeding as planned. Proxy Shareholder approval Regulatory clearance Timing