Exxon Mobil Corporation · NYSE:XOM
Exxon Mobil — Proxy Contest (May 2021)
30 slides from Exxon Mobil's proxy contest presentation, May 5, 2021
Slide 1: Growing Shareholder Value in a Lower-Carbon Future: Supplement
GROWING SHAREHOLDER VALUE IN A LOWER-CARBON FUTURE: SUPPLEMENT May 2021
Slide 2: Cautionary statement
Cautionary statement FORWARD-LOOKING STATEMENTS. Outlooks; projections; goals; estimates; discussions of earnings, cash flow, and margins; descriptions of strategic plans and objectives; planned expense reductions and the ability to meet or exceed announced reduction objectives; plans to reduce futu
Slide 3: Engine No. 1 is attempting to mislead investors
Engine No. 1 is attempting to mislead investors Attacks appear designed to deflect attention from Engine No. 1’s lack of an alternate plan for the future Engine No. 1’s presentation contains criticism of ExxonMobil’s plan, but no ideas to create future value • Engine No. 1’s platform: - Don’t invest
Slide 4: Attacks on ExxonMobil's energy transition strategy are false
Attacks on ExxonMobil’s energy transition strategy are false Data on energy demand and oil production growth deliberately misleading; ignore ExxonMobil public statements Engine No. 1 Assertion Reality • ExxonMobil has been actively preparing for a lower-carbon future for many years  We regularly
Slide 5: Claim that ExxonMobil does not believe in energy transition is false
Claim that ExxonMobil does not believe in energy transition is false ExxonMobil has disclosed a range of oil and gas demand scenarios to investors Engine No. 1 Assertion As Presented in ExxonMobil’s March 2020 Investor Day  ExxonMobil believes oil and gas demand will continue to increase Reality
Slide 6: Engine No. 1 ignores or belittles ExxonMobil's technology
Engine No. 1 ignores or belittles ExxonMobil’s technology Despite years of investments and demonstrated capability to apply lower-carbon technology, at scale Engine No. 1 Assertion As Presented in ExxonMobil’s April 2021 Investor Presentation  ExxonMobil has failed to plan for a lower-carbon futu
Slide 7: Criticism of low-carbon technology investment levels is misleading
Criticism of low-carbon technology investment levels is misleading ExxonMobil is investing far more in lower-carbon than in oil and gas, relative to current market size Engine No. 1 Assertion As Presented in ExxonMobil’s 1Q 2021 Earnings Presentation  ExxonMobil believes oil and gas demand will c
Slide 8: Claims that ExxonMobil is growing volumes, not value, are false
Claims that ExxonMobil is growing volumes, not value, are false Engine No. 1 uses out-of-date data and ignores ExxonMobil disclosures to investors Engine No. 1 Assertion As Presented at ExxonMobil’s March 2021 Investor Day  ExxonMobil is spending aggressively to materially grow volumes over value
Slide 9: Criticism of ExxonMobil's carbon capture strategy ignores the facts
Criticism of ExxonMobil’s carbon capture strategy ignores the facts ExxonMobil is the leader in carbon capture and the only company to capture more than 120 MT of CO2 Engine No. 1 Assertion Reality • Carbon capture is proven technology, and will play a critical role in achieving < 2°C pathway  En
Slide 10: Engine No. 1 ignores ExxonMobil's leadership in CCS
Engine No.1 ignores ExxonMobil’s leadership in CCS IPCC, IEA, and others recognize the need for carbon capture – Engine No. 1 is an outlier Engine No. 1 Assertion As presented in ExxonMobil’s April 2021 Investor Presentation  Carbon capture is vaporware Reality Carbon capture is deployed globa
Slide 11: Criticism of ExxonMobil's emission reductions is misleading
Criticism of ExxonMobil’s emission reductions is misleading ExxonMobil’s emissions reductions are consistent with goals of the Paris Agreement Engine No. 1 Assertion Reality • ExxonMobil is reducing the emissions we control consistent with the goals of the Paris Agreement  We are committed to red
Slide 12: Engine No. 1's analysis of ExxonMobil's performance is misleading
Engine No. 1’s analysis of ExxonMobil’s performance is misleading Uses out-of-date data, ignores price cycles, and does not provide accurate comparison to proxy peers Engine No. 1 Assertion Reality • ExxonMobil has one of the strongest S&P ratings in the S&P 500 and has reduced debt by 9% since 2Q20
Slide 13: Engine No. 1's criticism of debt and credit rating is misleading
Engine No. 1’s criticism of debt and credit rating is misleading Ignores the impact of the pandemic and ExxonMobil’s industry-leading credit rating vs. proxy peers Engine No. 1 Assertion Reality TOTAL DEBT Raised debt to build liquidity in early 2020 at less Billion USD • than 3% weighted average in
Slide 14: Engine No. 1's assessment of ExxonMobil's breakeven is inaccurate
Engine No. 1’s assessment of ExxonMobil’s breakeven is inaccurate Capital flexibility allows dividend to be maintained at ~$45/bbl1, versus Engine No. 1’s claim of $87/bbl Engine No. 1 Assertion As presented at ExxonMobil’s March 2021 Investor Day  ExxonMobil has breakeven price of $87/bbl in 202
Slide 15: Engine No. 1's criticisms of performance ignore impact of business cycles
Engine No. 1’s criticisms of performance ignore impact of business cycles Engine No. 1 is either misrepresenting the facts or doesn’t understand the industry Engine No. 1 Assertion Reality PRICES / MARGINS • Analysis of “value destruction”  ExxonMobil has destroyed 2010—2020 completely ignores th
Slide 16: TSR criticism is based on selecting inappropriate starting and ending dates
TSR criticism is based on selecting inappropriate starting and ending dates Engine No. 1 attempting to take credit for improvements driven by ExxonMobil actions, years in the making Engine No. 1 Assertion Reality • Engine No. 1 has intentionally chosen time periods that understate ExxonMobil’s perfo
Slide 17: Engine No. 1's evaluation of ExxonMobil's portfolio is inaccurate
Engine No. 1’s evaluation of ExxonMobil’s portfolio is inaccurate endorsed Engine No. by 1’s the assessment Board and includes disclosed ~ to $60 investors billion of spend not included in ExxonMobil’s 2021 – 2025 capex plan Engine No. 1 Assertion As Presented in ExxonMobil’s April 2021 Investor Pre
Slide 18: Engine No. 1's criticisms of board ignore company's complexity
Engine No. 1’s criticisms of board ignore company’s complexity Adding Engine No. 1 candidates would pose a clear risk to shareholder value and ExxonMobil’s plans Engine No. 1 Assertion Reality • ExxonMobil has a world-class, diverse and independent board with unmatched expertise to guide success in
Slide 19: Engine No. 1's engagement raises questions about their motivation
Engine No. 1’s engagement raises questions about their motivation Refused offer to discuss Company’s plans and demanded “four seats or face a proxy fight” Engine No. 1 Assertion Reality • Engine No. 1 has rejected ExxonMobil’s genuine offers of constructive engagement  Company principals and advi
Slide 20: Appendix
Appendix 20
Slide 21: Other ways Engine No. 1 is attempting to mislead on climate
Other ways Engine No. 1 is attempting to mislead on climate Source: ExxonMobil Outlook for Energy 2019 Engine No. 1 Assertion (Investor Presentation May 2021) Reality Changes in demand can occur quickly once alternative technologies provide a better product (slide 30) Engine No. 1 asserts that Exxon
Slide 22: Other ways Engine No. 1 is attempting to mislead on climate (Climate White Paper)
22 Other ways Engine No. 1 is attempting to mislead on climate Engine No. 1 Assertion (March 2021 Climate White Paper) Reality The energy transition means the end of carbon-based fuels Electric Vehicles can replace half of all oil demand and will mean the end of the oil and gas industry Third party
Slide 23: Supplemental Information
Supplemental Information 23
Slide 24: Supplemental information: forward-looking statements
Supplemental information IMPORTANT INFORMATION AND ASSUMPTIONS REGARDING CERTAIN FORWARD-LOOKING STATEMENTS. Forward-looking statements contained in this presentation regarding the potential for future earnings, cash flow, margins, ROCE, returns, addressable markets, available cash from operations,
Slide 25: Supplemental information: Non-GAAP and other measures
Supplemental information NON-GAAP AND OTHER MEASURES. With respect to historical periods, reconciliation information is provided in the Frequently Used Terms available on the Investor page of our website at www.exxonmobil.com under the heading News & Resources for certain terms used in this presenta
Slide 26: Definitions and non-GAAP financial measure reconciliations, continued
Supplemental information DEFINITIONS AND NON-GAAP FINANCIAL MEASURE RECONCILIATIONS, CONTINUED Return on average capital employed (ROCE). ROCE is a performance measure ratio. From the perspective of the business segments, ROCE is annual business segment earnings divided by average business segment c
Slide 27: Supplemental information: Other information
Supplemental information OTHER INFORMATION. This presentation includes a number of third party scenarios such as the 74 Lower 2°C scenarios, made available through the IPCC SR 1.5 scenario explorer data, and the IEA’s Stated Policies Scenario as well as the IEA’s Sustainable Development Scenario. Th
Slide 28: Supplemental information: footnotes and sources
Supplemental information Slide 4 1) Total Addressable Market figures: ExxonMobil analysis of IPCC SR 1.5 scenario explorer data on Lower 2°C scenarios for CO2, H2, and Biofuels. Volumes and prices in the Lower 2°C scenarios were used, where available, to calculate an estimate of the market revenue.
Slide 29: Supplemental information: footnotes and sources
Supplemental information Slide 15 1) Source: S&P Global Platts. 2) Source: ICE. Equal weighting of Henry Hub and NBP. 3) Source: S&P Global Platts and ExxonMobil analysis. Equal weighting of U.S. Gulf Coast (Maya – Coking), Northwest Europe (Brent – Catalytic Cracking), and Singapore (Dubai – Cataly
Slide 30: Important Additional Information Regarding Proxy Solicitation
Important Additional Information Regarding Proxy Solicitation Exxon Mobil Corporation (“ExxonMobil”) has filed a definitive proxy statement and form of associated BLUE proxy card with the U.S. Securities and Exchange Commission (the “SEC”) in connection with the solicitation of proxies for ExxonMobi