Slide 1: Strategy and Outlook
Strategy and Outlook September 2017
Slide 2: 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
Slide 3: Capitalizing on strengths to secure future growth
Feb. 2017 Capitalizing on strengths to secure future growth Taking advantage of current market conditions Maintaining discipline to continue to reduce breakeven Taking advantage of low-cost environment • Sanctioning high-return projects • Adding attractive resources Increasing leverage to oil price
Slide 4: Markets dominated by oil price volatility
Markets dominated by oil price volatility Supply-demand and OECD inventories Mb/d Demand growth strong due to low price +1.6 Mb/d demand in 2017* Supply subject to opposing trends Supply • OPEC / non-OPEC cuts 95 Demand • Production increasing in US shale, Libya, Nigeria 2011-14 average: 2.7 Bb Inve
Slide 5: Global LNG demand growing, led by Asia
Global LNG demand growing, led by Asia Leveraging technology to reduce costs along the gas value chain 2005-25 LNG demand 2015-30 LNG supply Mt/y Mt/y +5% per year To be 400 400 sanctioned +6% Other per year Middle East Demand Europe Under construction Rest of Asia China Existing supply Japan Korea
Slide 6: Integrating climate into strategy
Integrating climate into strategy Becoming the responsible energy major Global energy demand Mboe/d Focusing on oil IEA 2°C scenario* projects with low breakeven 300 Solar / Wind Bio-energy Hydro Nuclear Expanding Coal along the gas value chain Oil Natural gas Growing profitable 2016 2035 low-carbon
Slide 7: Delivering on targets, creating competitive advantage
Delivering on targets, creating competitive advantage
Slide 8: Safety, a core value
Safety, a core value Cornerstone of operational efficiency Total Recordable Injury Rate for Total and peers* Continuously improving safety and processes Per million man-hours 3 2 1 2010 June 2017 1 fatality in 2017 (1 in 2016) Golden rules for Safety * Group TRIR excl. Specialty Chemicals and Saft P
Slide 9: Delivering best in class production growth
Delivering best in class production growth Leveraging start-ups, ramp-ups and new ventures Production 2014-1H17 production growth for Total and peers* Mboe/d % ~5% 20% +4.5% 2.5 +9% 2.0 2014 2015 2016 2017 Achieving target of 5% per year 2014-20 * Peers: BP, Chevron, ExxonMobil, Shell including BG a
Slide 10: Relentlessly reducing costs
Relentlessly reducing costs Sustainable savings from structural changes Group Opex savings Production costs (ASC 932) B$ $/boe 3.6 B$ 9.9 7.4 < 5.5 2.8 Downstream & Corporate $/boe 5.9 1.5 Upstream 2015 2016 2017 2014 2015 2016 2017 Previous guidance: 3.5 B$ Previous guidance: 5.5 $/boe 2017 Strateg
Slide 11: Delivering superior Downstream performance
Delivering superior Downstream performance Fully capturing margins and maintaining competitive advantage Downstream CFFO Downstream ROACE for Total and peers* B$ % ~7 B$ 8 30% 1H17 2012 2013 2014 2015 2016 2017 2012 1H17 ERMI ($/t) 36 18 19 49 34 37 * Peers: BP, Chevron, ExxonMobil, Shell – based on
Slide 12: 10 B$ asset sale program completed
10 B$ asset sale program completed High-grading portfolio 2015-17 Bostik asset sale Atotech program 10% Fort Hills Gina Krog 20% Kharyaga 10 B$ 20% Laggan-Tormore FUKA Totalgaz Schwedt refinery Geosel TotalErg SPMR Turkey retail Onshore Nigeria Mature Gabon 10% Incahuasi Upstream Downstream Midstrea
Slide 13: Strengthening balance sheet through the cycle
Strengthening balance sheet through the cycle Organic pre-dividend breakeven ~35 $/b Organic free cash flow Net-debt-to-equity ratio B$ % 5 20% 31% 28% 27% > 2 B$ normalized* for resource acquisition 2015 2016 0 1H17 2014 2015 2016 June 2017 Brent ($/b) 52 44 52 Brent ($/b) 99 52 44 52 -5 * 1H17 FCF
Slide 14: Continuing to outperform peers in 1H17
Continuing to outperform peers in 1H17 Upstream net income per barrel Downstream ROACE $/b % 6 30% Group ROE Payout ratio % % 10% 100% Peers: BP, Chevron, ExxonMobil, Shell – based on public data 2017 Strategy and Outlook 13
Slide 15: Creating value through excellence and profitable growth
Creating value through excellence and profitable growth
Slide 16: Strongly positioned to create long term value
Strongly positioned to create long term value Benefiting from integrated business model Maintaining strong discipline on costs and investment selection to reduce breakeven Taking advantage of the low cycle environment Extending production growth of 5% per year until 2022 Building steadily a profitab
Slide 17: Strengthening the portfolio through the cycle
Strengthening the portfolio through the cycle >4 Bboe low breakeven resources added since 2015 USA Acquisition of 23% in Tellurian Driftwood LNG USA Acquisition of 75% in Barnett (Total participation 100%) Algeria Partnership with Sonatrach Iran USA (TFT 35%, Timimoun 37.7%) South Pars 11 Borealis N
Slide 18: Acquiring an attractive portfolio with Maersk Oil
Acquiring an attractive portfolio with Maersk Oil Adding high quality assets offering growth in core areas Main assets acquired* ~ 1 billion barrels, >85% in OECD countries Johan Sverdrup, 8.44% Culzean, 49.99%, op. Quad 9, 30-100%, op. & non-op. Golden Eagle, 31.56% Net production of 160 kboe/d in
Slide 19: Investing with discipline for future growth
Investing with discipline for future growth Flexibility to launch new projects and manage portfolio Capex excluding resource acquisition 2017-20 average annual net resource acquisition B$ B$ ~14 B$ 13-15 B$* 2 1 B$ Sales 2017 2018-20 DRO* Net resource Previous guidance: 14-15 B$ 13-15 B$ acquisition
Slide 20: Increasing Opex savings from 4 B$ to 5 B$
Increasing Opex savings from 4 B$ to 5 B$ Relentlessly reducing costs 2018-20 Opex savings plan 5 B$ 4 B$ Extending cost reduction program to 2020 Downstream & Corporate Delivering >200 M$ of cost synergies from Maersk Oil Upstream Central procurement delivering across the board savings 2018 2020 20
Slide 21: Strong production growth
Strong production growth 5% CAGR to 2022 including Maersk Oil addition Production kboe/d Total & Total Maersk Oil 4% CAGR 5% CAGR 2016-22 2016-22 2,452 2016 2022 2022 2017 Strategy and Outlook 20
Slide 22: Delivering cash-accretive start-ups
Delivering cash-accretive start-ups > 700 kboe/d additional production by 2020 Major start-ups Average Total cash margin at 50 $/b % progress CFFO - $/boe kboe/d Share 100% Kashagan 370 16.8% Moho North 100 54% 25 2 0 Edradour-Glenlivet 35 60% 1 Libra Pioneiro 50 20% 7 ~2X Yamal LNG 450 20% Fort Hil
Slide 23: Sanctioning high return projects in low cost environment
Sanctioning high return projects in low cost environment 13 FIDs by end-2018 Main project FIDs Net capacity & IRR for TOTAL projects at 50 $/b Working interest, 100% capacity kboe/d net TOTAL projects > 350 Absheron 1 Azerbaijan 40% op. 35 kboe/d kboe/d Vaca Muerta Argentina 41% op. 100 kboe/d Halfa
Slide 24: Short cycle development opportunities
Short cycle development opportunities More than 20 projects providing Capex flexibility >1 ~7 >20% Bboe net $/boe IRR UK, reserves development at 50 $/b Elgin Franklin cost infills USA, Barnett, Nigeria Tahiti infills Akpo infills Bonga infills Qatar, Al Shaheen Angola infills Clov infills Argentina
Slide 25: Enhancing exploration portfolio with new opportunities
Enhancing exploration portfolio with new opportunities > 1.5 Bboe risked potential added on core and growth areas since 2015 Budget Wells 1.25 B$ ~35 per year per year in 2017-18 Bulgaria Greece Polshkov Cyprus United States North Platte Egypt Mexico Mauritania Aruba Senegal Block A6 French Guyana M
Slide 26: Growing E&P free cash flow
Growing E&P free cash flow Free cash flow*, incl. 1 B$/y net resource acquisition B$, at 50 $/b Starting up high cash margin projects 5 +5 B$ Maintaining strict investment discipline Benefiting from free cash flow accretive Maersk Oil assets 2017 >3 B$ cash flow impact in 2019 for 10 $/b 2019 2022 c
Slide 27: Integrated gas delivering >2 B$ free cash flow by 2022
Integrated gas delivering >2 B$ free cash flow by 2022 Sustainable benefits from long plateau production Integrated gas free cash flow at 50 $/b B$ +5% 2x +10% per year Gas & LNG per year 2 production trading portfolio B2B/B2C sales 2017 2019 2022 Targeting 5% market share of LNG trading Capturing f
Slide 28: Developing a profitable low carbon business
Developing a profitable low carbon business Gas, Renewables & Power targeting 500 M$ free cash flow by 2022 Growing Gas & Power marketing Growing downstream renewables Number of customers and sites supplied Total EREN (solar, wind) Nanao SunPower 27 MW 3 Million 1.3 GW Miyako B2C Shams 25 MW 110 MW
Slide 29: Increasing Downstream free cash flow by >40% by 2022
Increasing Downstream free cash flow by >40% by 2022 Growth opportunities in petrochemicals and marketing Downstream FCF*, incl. 500 M$ net acquisitions 2017 Downstream cash flow from operations B$ Marketing Refining +1.5 B$ & Services 5 ERMI 25 $/t Chemicals 2017** 2019 2022 ERMI $/t 37 35 35 Non-c
Slide 30: Increasing R&C organic free cash flow by >30%
Increasing R&C organic free cash flow by >30% Expanding petchems, selectively upgrading platforms, reducing costs R&C organic free cash flow* B$ 3 B$ +1 B$ >25% > 30% Free cash flow Free cash flow ROACE in 2017 4 2017-2022 2012 2017 2022 ERMI ($/t) 36 37 35 * In 2017 petrochemical environment 2017 S
Slide 31: Increasing M&S organic free cash flow by 50%
Increasing M&S organic free cash flow by 50% Well diversified, non-cyclical source of cash flow M&S organic free cash flow B$ +100 M$ 1 B$ +0.5 B$ >20% Free cash flow per year Free cash flow ROACE in 2017 1.5 2017-22 +100 M$ per year 2012 2017 2022 Expanding retail and lubricants 2017 Strategy and O
Slide 32: Growing Group free cash flow
Growing Group free cash flow Reducing pre-dividend breakeven to <30 $/b by 2019 Free cash flow* at 50 $/b B$ 10 60 $/b Removing discount on scrip dividend at closing of Maersk Oil acquisition Covering full cash dividend from 2019 at 50 $/b ROE >10% at 50 $/b by 2020 2017 2018 2019 2020 FCF Dividend
Slide 33: Excellence, growth, cash
Excellence, growth, cash Implementing strategy to create value and generate superior returns Managing with discipline • Sustainably reducing breakeven < 30 $/b Investing for profitable growth • Production growth 2016-22: + 5%/year Increasing free cash flow in all segments • Covering all-cash dividen