Exxon Mobil Corporation · NYSE:XOM
Exxon Mobil — Shareholder Meeting (April 2023)
33 slides from Exxon Mobil's shareholder meeting presentation, Apr 24, 2023
Slide 1: Meeting the world's energy needs and reducing emissions
Meeting the world’s energy needs and reducing emissions ESG summary for shareholder engagements ExxonMobil Research Center April 2023 Clinton, New Jersey
Slide 2: Cautionary statement
Cautionary statement Outlooks; projections; plans; ambitions; estimates; and descriptions of strategic plans and objectives are forward-looking statements. Similarly, emission-reduction roadmaps are dependent on future market factors, such as continued technological progress and policy support, and
Slide 3: Table of contents
LAW (D. Kern) TO BE UPDATED Table of contents 04 2022 highlights 05 Create sustainable solutions that improve quality of life and meet society’s evolving needs 06 Supporting a lower-emissions future for society 07 Uniquely positioned to meet the world’s energy needs and reduce emissions 08 Positioni
Slide 4: 2022 highlights
2022 highlights 2022 financial performance It’s an “and” equation: meeting the world’s needs and reducing emissions & o $56 billion in earnings Upstream production growth despite significant divestments and o 87% total shareholder return 25 Koebd Sakhalin-1 expropriation in Russia o 25% return on ca
Slide 5: Create sustainable solutions that improve quality of life and meet society's evolving needs
Create sustainable solutions that improve quality of life and meet society’s evolving needs Strategic priorities Leading performance Industry leader in operating and financial performance Essential partner Value through win-win solutions for our customers, partners, and broader stakeholders Advantag
Slide 6: Supporting a lower-emissions future for society
Supporting a lower-emissions future for society 1 3 2030 Emission-reduction plans Emission-reduction roadmaps o 20-30% reduction in corporate-wide GHG intensity o Roadmaps for major operated assets were completed in 2022; we’ll update them as needed to reflect technology, market, policy and other de
Slide 7: Uniquely positioned to meet the world's energy needs and reduce emissions
Uniquely positioned to meet the world’s energy needs and reduce emissions Life cycle approach (LCA) Helping customers reduce their emissions o To evaluate impact on society’s overall GHG emissions, it is critical to consider: o Innovative solutions to improve modern life 6 o Society’s evolving needs
Slide 8: Positioning for a lower-emissions future
Positioning for a lower-emissions future Large markets with high-return potential We’re investing ~$17 billion in lower-emission investments in 2022-2027 o All energy sources remain important across IPCC Lower 2°C and IEA NZE scenarios o ~60% is focused on reducing our own emissions. ~40% is directe
Slide 9: Resilient through the energy transition
Resilient through the energy transition 1,2,3 International Energy Agency (IEA) NZE scenario analysis Validating strategy resiliency o Our business is positioned for growth even in an aggressive decarbonization pathway o Driven by growth potential for chemicals, lower-emission fuels, carbon capture
Slide 10: High-performance plastics and advanced recycling
High-performance plastics and advanced recycling Addressing plastic waste Plastic waste advanced recycling plans o Founding member of the Houston Recycling Collaboration to increase o Plan to build ~1 billion pounds of annual advanced recycling capacity globally by year- access to plastic recycling
Slide 11: Constructive policy critical for lower emissions
Constructive policy critical for lower emissions 1 Potential greenhouse gas abatement options based on ExxonMobil emissions-reduction roadmaps supporting our net-zero ambitions With current global policies With current global policies and Without policies 2 potential U.S. IRA incentives Without poli
Slide 12: Political contributions and lobbying
Political contributions and lobbying Lobbying and advocacy Climate lobbying o We engage in lobbying in the United States at the federal and state levels to o Recognizing that sound government policies are required and can act as an accelerator for advocate our positions on issues that affect our Cor
Slide 13: Independent and diverse board
1 Independent and diverse board Board oversight Focused on growing long-term shareholder value o Company’s strategy and planning o Business-related risks and opportunities Michael J. Angelakis Susan K. Avery Angela F. Braly o Chairman & CEO, Atairos o President Emerita, Woods Hole o Former Chairman,
Slide 14: Executive compensation
Executive compensation Compensation program design 1 CEO compensation benchmarking o Investment decisions and management of risk play out over long periods of time. Decisions made today often materialize o Evolution of pay 2020-2022 demonstrates strength of program years from now, requiring our exec
Slide 15: Investing in people
Investing in people Goals 2022 Highlights Strategic talent objective We have a diverse and engaged workforce and provide every individual unrivalled opportunities for personal and professional growth with impactful work meeting • Significantly expanded stock program for professional employees, re-en
Slide 16: 2022 accomplishments
2022 accomplishments Execution of our strategy drove strong results Leading performance | Essential partner | Advantaged portfolio | Innovative solutions | Meaningful development 1 • Industry-leading 2022 financial performance driven by strong operating results • Grew production to meet global needs
Slide 17: 2022 industry-leading financial results
2022 industry-leading financial results Earnings Total shareholder return Return on capital employed $56 billion 87% 25% 3 Earnings ex. identified items of $59 billion; leading peers highest one-year ROCE since 2012; leading 1,2 2 leading peers peers Cash flow from operations Structural savings Shar
Slide 18: Response to 2022 passing shareholder proposal on scenario analysis
Response to 2022 passing shareholder proposal on scenario analysis Our response to the ‘22 majority vote for a Report on Scenario Analysis (Item 8) GHG emissions pricing where ExxonMobil operates or invests o We, and members of the Board, engaged with shareholders, including the o The greenhouse gas
Slide 19: Board recommends voting for items 1-3 and 1-year frequency on item 4
Board recommends voting for items 1-3 and for 1-year frequency on item 4 For item 1: election of 12 directors For item 3: advisory vote to approve executive compensation - “say on pay” o The Board refreshment process is led by the Nominating and Governance o We continue to listen and respond to shar
Slide 20: Board recommends voting against items 5-7
Board recommends voting against items 5-7 Against item 5: establish a new board committee on decarbonization risk Against item 7: additional carbon capture and storage and emissions report o The Board and several of its committees actively oversee the development of the o This is one of 10 new repor
Slide 21: Board recommends voting against items 8-9
Board recommends voting against items 8-9 Against item 8: additional direct methane measurement Against item 9: establish a scope 3 target and reduce hydrocarbon sales o We are a leader in advocating for strong measurement, reporting, and verification o In our view, this proposal reflects the propon
Slide 22: Board recommends voting against items 10-11
Board recommends voting against items 10-11 Against item 10: additional report on worst-case spill and response plans Against item 11: GHG reporting on adjusted basis o The requested information is already publicly available in published reports prepared o The resolution narrowly focuses on divestme
Slide 23: Board recommends voting against items 12-13
Board recommends voting against items 12-13 Against item 13: report on plastics under SCS scenario Against item 12: report on asset retirement obligations (AROs) under IEA NZE scenario o Through responsible manufacturing, advanced recycling solutions, and collaboration o The ‘23 ACS provides enhance
Slide 24: Board recommends voting against items 14-16
Board recommends voting against items 14-16 Against item 14: litigation disclosure beyond legal and accounting requirements Against item 16: energy transition social impact report o We already disclose material litigation risks and account for financial contingencies o The requested report is unnece
Slide 25: Climate Action 100+ Net Zero Company Benchmark
Climate Action 100+ Net Zero Company Benchmark 1 CA100+ assessment for ExxonMobil (October ‘22) should not be relied upon Our view on why ExxonMobil and CA100+ are misaligned o The CA100+ benchmark was cited in ISS’s 2022 Proxy Analysis & Benchmark o Our ’23 ACS report (page 94) highlights that the
Slide 26: ExxonMobil
26 EXXONMOBIL 26
Slide 27: Supplemental information: footnotes
Supplemental information Slide 04, continued (2022 highlights) Footnotes 7. Applies to Scope 1 and 2 greenhouse gas emissions from operated assets. Emission metrics are based on assets operated by ExxonMobil using performance and plan data for full-year 2022 available as of March 1, 2023. Slide 04 (
Slide 28: Supplemental information: footnotes
Supplemental information Slide 08 (Positioning for a lower-emissions future) Footnotes 1. Total addressable market based on ExxonMobil analysis of the IPCC’s Sixth Assessment Report Scenarios Database hosted by IIASA for carbon capture and storage, wind, solar, hydrogen, nuclear, biofuels, geotherma
Slide 29: Supplemental information: footnotes
Supplemental information Slide 11 (Constructive policy critical for lower emissions) Footnotes 1. With advances in technology and the support of clear and consistent government policies, we aim to achieve net- zero operated Scope 1 and 2 greenhouse gas emissions by 2050. We have also set a goal to b
Slide 30: Supplemental information: footnotes
Supplemental information Slide 21, (Board recommends voting against items 8-9) Footnotes 1. Applies to Scope 1 and 2 greenhouse gas emissions from operated assets. Emission metrics are based on assets operated by ExxonMobil using performance and plan data for full-year 2022 available as of March 1,
Slide 31: Operating costs and calculation of structural cost savings
Supplemental information Operating costs and cash operating expenses / calculation of structural cost savings 2019 2022 Components of operating costs From ExxonMobil’s Consolidated statement of income (U.S. GAAP) Production and manufacturing expenses 36.8 42.6 Selling, general and administrative exp
Slide 32: Reconciliation of 2022 GAAP earnings to non-GAAP earnings
Supplemental information Reconciliation of 2022 GAAP earnings to 2022 non-GAAP earnings U/S EP CP SP C&F TOTAL 2021 GAAP Earnings / (Loss) $15.8 ($0.3) $7.0 $3.3 ($2.6) $23.0 Announced divestments 0.5 - - 0.6 (0.0) 1.1 Impairments (0.8) - - - - (0.8) Contractual provisions (0.3) - - - - (0.3) Severa
Slide 33: Definitions and non-GAAP financial measure reconciliations
Supplemental information Definitions and non-GAAP financial measure reconciliations Structural savings (also structural cost savings, structural cost reductions, structural efficiencies). Structural savings (also structural cost savings, structural cost reductions, structural efficiencies). Structur