Imperial Oil Limited · TSX:IMO
Imperial Oil — Shareholder Meeting (May 2018)
27 slides from Imperial Oil's shareholder meeting presentation, May 1, 2018
Slide 1: Annual Meeting of Shareholders
Exhibit 99.1 April 27 Annual Meeting of Shareholders
Slide 2: Cautionary statement
Cautionary statement Statements of future events or conditions in this report, including projections, targets, expectations, estimates, and business plans are forward-looking statements. Actual future financial and operating results, including demand growth and energy source mix; production growth a
Slide 3: Meeting proceedings
Meeting proceedings Rich Kruger Chairman, President and CEO Lara Pella Corporate Secretary Imperial | 2018 | 3
Slide 4: Audit committee report
Audit committee report Victor Young Audit Committee Chair Imperial | 2018 | 6
Slide 5: Election of directors
Election of directors David Cornhill Richu Kruger Jack Mintz David Sutherland Sheelagh Whittaker Krystyna Hoeg Jerry Wascom Imperial Imperial | 2018 | 8
Slide 6: Shareholder proposals
Shareholder proposals Rich Kruger Chairman, President and CEO Lara Pella Corporate Secretary Imperial | 2018 | 9
Slide 7: Chairman's remarks
Chairman’s remarks Rich Kruger Chairman, President and CEO Imperial | 2018 | 10
Slide 8: Global energy outlook
Global energy outlook Megatrends driving world’s increasing demand for energy Energy demand, quadrillion BTUs 750 500 250 2016 2040 Oil to remain largest energy source Gas demand led by power generation Policies and economics to affect mix Outlook assumes major efficiencies 0 Source: ExxonMobil 2018
Slide 9: Global liquids demand
Global liquids demand Increasing based on commercial transportation and chemicals growth Liquids production, mbd 120 90 60 30 0 2017 2040 ±5% annual base decline 80% of 2040 demand from new supplies Supplies needed from multiple sources Requires major ongoing investment Source: International Energy
Slide 10: Canada's opportunity
Canada’s opportunity Dual challenge to meet growing demand, reduce environmental impact World scale oil and gas resources Major new sources of competing supply Competitiveness must be addressed New technology and innovation key Imperial | 2018 | 13
Slide 11: Imperial's winning formula
Imperial’s winning formula Increase cash flow, deliver industry-leading returns throughout the cycle Deliver industry leading performance in reliability, safety and operations integrity Leverage technology, integration and ExxonMobil to differentiate versus competition Continue to achieve improvemen
Slide 12: Safety and operational integrity
Safety and operational integrity £ Priority on protecting people and ensuring effective risk management 1 Equivalent to 100 workers for one year Imperial | 2018 | 15
Slide 13: 2017 results
2017 results Focused on strengthening performance and returning value to shareholders $490 million Net income 3,000 bpd Refinery throughput $2,763 million Cash from operations © 492,000 bpd Petroleum product sales ©, $1,151 million Returned to shareholders 0 Imperial | 2018 | 16
Slide 14: Upstream performance
Upstream performance $6.1 billion cash generated from operating activities over the last five years 1 Gross production, Imperial’s interest 2Gross production, 100% interest (71% Imperial’s share) Cold Lake: industry-leading in situ + 160 kbd near-term average Kearl: large, long-life mining + 200 kbd
Slide 15: Kearl
Kearl Reliability improvements to achieve annual average production of 240 kbd1 250 200 150 100 50 0 2014 2015 2016 2017 2018e 1019e 2020e Actions completed in 2017 + Improved ore preparation performance + Enhanced piping durability Progressing investments through 2019 + Adding supplemental crushing
Slide 16: Downstream performance
Downstream performance $7.8 billion cash generated from operating activities over the last five years Volumes, kbd1 500 250 Refinery throughput Petroleum product sales 0 2009 2011 2013 2015 2017 Premium customer offering + Quality brands and loyalty programs + Coast to coast supply and customer supp
Slide 17: Refining
Refining Leading performance in North America, top-tier in Canada Performance Energy Non-energy quartiles efficiency cash opex Total unit cost Net cash margin 1st 3rd 4th Source: 2016 Solomon survey, includes 96 refineries in North America (13 in Canada) Imperial | 2018 | 20
Slide 18: Fuels and lubricants marketing
Fuels and lubricants marketing Aggressively capturing new business and meeting customer needs New customer offerings + Introduction of Synergy fuels nationwide + Conversion of former Loblaw’s locations to Mobil brand + Exclusive fuel partner of PC Optimum loyalty program Long-term supply agreements
Slide 19: Research and technology
Research and technology wSRJ Leveraging technology to deliver economic and environmental benefits $150-200 million annual investment Pioneer in solvent-based technologies Project regulatory applications submitted 1 Boone World Heavy OH Conference, industry reports, internal estimates Imperial | 2018
Slide 20: Value chain integration
Value chain integration Demonstrating financial resilience throughout the business cycle 1 Five-year average, % 5 4 3 2 1 2013 2014 2015 2016 2017 Cash from operating activities, $ billion Upstream Downstream & Chemical Imperial | 2018 | 23
Slide 21: Financial strength
Financial strength , an Unmatched balance sheet, optionality and priority access to financial markets YE 2017 debt to capital, % 50 Ratings1 Capital structure flexibility Borrow on most attractive terms Leverage XOM relationship 1 Based on S&P Global debt rating, as of February28,2018 Imperial | 201
Slide 22: Shareholder distributions
Shareholder distributions $1.2 billion returned through dividends and share purchases in 2017 0.75 0.50 0.25 0.00 2003 2010 2017 1,200 800 400 0 Reliable and growing dividends + 127 consecutive years of payment + 23 consecutive years of growth + 6.5% 10-yr compound annual growth Expanded buyback pro
Slide 23: 2018 Q1 results
2018 Q1 results Continued focus on enhancing performance and increasing shareholder returns 370,000 boepd Upstream production 408,000 bpd Refinery throughput 478,000 bpd Petroleum product sales $516 million Net income $985 million Cash from operations $384 million Returned to shareholders Imperial |
Slide 24: Why Imperial?
Why Imperial? Distinct competitive advantages that deliver long-term shareholder value Operational excellence Technical, operational and financial risk management that enhances value Value chain integration Synergies across the full value chain including ExxonMobil relationship Asset base High quali
Slide 25: Q & A
Q & A
Slide 26: Scrutineers' report
Scrutineers’report Lara Pella Corporate Secretary Imperial | 2018 | 29
Slide 27: Annual Meeting of Shareholders
April 27 Annual Meeting of Shareholders