Imperial Oil Limited · TSX:IMO
Imperial Oil — Shareholder Meeting (April 2016)
35 slides from Imperial Oil's shareholder meeting presentation, Apr 29, 2016
Slide 1: Annual Meeting of Shareholders
April 29, 2016 Annual Meeting of Shareholders Delivering superior, long-term value Imperial │ 2016 │ 1
Slide 2: Meeting proceedings
Meeting proceedings Rich Kruger, Chairman, President and CEO Lara Pella, Corporate Secretary
Slide 3: Emergency procedures
Emergency procedures Lara Pella, Corporate Secretary
Slide 4: Meeting proceedings
Meeting proceedings Rich Kruger, Chairman, President and CEO Lara Pella, Corporate Secretary
Slide 5: Audit Committee report
Audit Committee report Victor Young, Committee Chair
Slide 6: Meeting proceedings
Meeting proceedings Rich Kruger, Chairman, President and CEO Lara Pella, Corporate Secretary
Slide 7: Election of directors
Election of directors Victor David Krystyna Sheelagh Rich Jack Jerry Young Sutherland Wascom Hoeg Whittaker Kruger Mintz
Slide 8: Chairman's remarks
April 29, 2016 Annual Meeting of Shareholders Chairman’s remarks Imperial │ 2016 │ 8
Slide 9: Business environment
Business environment Significant time of change and uncertainty Prolonged period of low oil prices Distressed upstream industry Continued market access constraints Federal and provincial government changes International focus on climate Imperial │ 2016 2015 │ 9
Slide 10: Imperial's priorities
Imperial’s priorities Focus on the things most within our control Safety and operational integrity Cost management Asset performance Project execution Value of integration Imperial │ 2016 2015 │ 10
Slide 11: Safety performance
Safety performance Committed to a workplace where “Nobody gets hurt” Incidents per 200,000 hours worked1 1.0 5-year rate 0.8 2015 0.6 0.4 best ever 0.2 0.0 Canadian Imperial industry 1Equivalent to 100 workers for one year Imperial │ 2016 │ 11
Slide 12: Environmental performance
Environmental performance Focused on operational integrity, incident prevention # of spills 40 30 20 record low 10 0 2011 2012 2013 2014 2015 Imperial │ 2016 │ 12
Slide 13: Environmental leadership
Environmental leadership Substantial progress in water management, reclamation Kearl mining Cold Lake in situ 80% 95%+ of water recycled from of water recycled from within operations within operations 100+ 1.6M hectares progressively trees and shrubs reclaimed to date planted since 1999 Imperial ││
Slide 14: 2015 results
2015 results Resiliency in a challenging business environment Upstream production Net income 366 kboepd $1.1B Refinery throughput Cash flow 386 kbpd $2.2B Petroleum product sales Cost reductions 478 kbpd $1.5B Imperial │ 2016 │ 14
Slide 15: Cost management
Cost management Aggressively pursuing cost reductions and efficiencies Market capture Spending selectivity $1.5B cost reductions in 2015 Innovative solutions versus earlier plans Workforce productivity Internal efficiencies Imperial │ 2016 │ 15
Slide 16: Kearl
Kearl Expansion project enhancing overall performance Gross bitumen production, kbd Unit cash cost, % 220 100 165 110 50 55 0 0 2014 1Q15 2Q15 3Q15 4Q15 Imperial │ 2016 │ 16
Slide 17: Kearl
Kearl “Design one, build multiple” strategy delivers results Construction time Capital cost months $ billions 40 15 22% reduction 10 30% reduction 20 5 0 0 Initial Expansion Initial Expansion Imperial ││ 2016 Imperial 2015 │ 17
Slide 18: Kearl Initial development to expansion: delivering upstream excellence
Kearl Initial development to expansion: delivering upstream excellence Watch the video on Imperial’s YouTube channel Imperial │ 2016 │ 18
Slide 19: Cold Lake
Cold Lake Industry-leading performance, growth potential Bitumen production Unit cash cost kbd % 8% increase 160 100 13% reduction 80 50 0 0 2014 2015 2014 2015 Imperial │ 2016 │ 19
Slide 20: Edmonton rail terminal
Edmonton rail terminal Strategic investment to ensure market access Joint venture with Kinder Morgan 210 kbd unit train capacity Start-up April 2015 Imperial ││ 2016 Imperial 2015 │ 20
Slide 21: Maximizing downstream value
Maximizing downstream value Advantaged feedstocks and integrated product marketing Imperial │ 2016 │ 21
Slide 22: Downstream integration & operational excellence
Downstream integration & operational excellence Watch the video on Imperial’s YouTube channel Imperial │ 2016 │ 22
Slide 23: Retail fuels
Retail fuels Completing conversion to branded wholesaler operating model 497 company-owned sites sold for $2.8B Focus on continuing to deliver quality fuels Committed to growing the Esso brand nationwide Retaining marketing and loyalty programs Imperial │ 2016 2015 │ 23
Slide 24: Chemical business
Chemical business Highly profitable, top-tier polyethylene manufacturer Earnings, $ millions 300 record high Low cost feedstocks New gas cracker furnace 150 0 2010 2011 2012 2013 2014 2015 Imperial │ 2016 2015 │ 24
Slide 25: Total shareholder return
Total shareholder return Industry-leading performance throughout the business cycle % Imperial Competitor S&P/TSX Energy 5 average Index +3% 0 -6% -6% -5 -9% -10 -21% -23% -15 2015 -20 3 year -25 Note: annualized return calculated for the one and three year period including dividends reinvested Impe
Slide 26: Shareholder distributions
Shareholder distributions Over $10 billion returned to shareholders in the last 10 years Cash flow payout (2006-2015), % 40 30 20 10 0 IMO HSE CVE SU CNQ Source: company publications Cash flow payout includes annual dividends and share repurchases as a percentage of annual cash flow from operating a
Slide 27: Dividends
Dividends Reliable and growing Annual distributions, $ per share 0.60 125 years of consecutive 0.30 payment 21 years of consecutive 0.00 growth 06 07 08 09 10 11 12 13 14 15 Note: dividends shown on a paid basis Imperial │ 2016 │ 27
Slide 28: Industry-leading capital efficiency
Industry-leading capital efficiency Maximizing investment value Return on capital employed, % 30 10-year average 2015 15 0 IMO HSE SU CVE CNQ -15 Source: company publications Imperial ││ 2016 Imperial 2016 │ 28
Slide 29: Responsible energy development
Responsible energy development Dual challenge to meet demand, minimize environmental impact All energy sources required Safe Reliable Investments must compete globally Technology and innovation key Affordable Abundant Imperial │ 2016 │ 29
Slide 30: Imperial's future opportunities
Imperial’s future opportunities Large total resource base to support long-term growth Existing 23 billion barrels of oil equivalent1 operations New in situ project applications submitted Additional potential Development planning Investment scope and pace to be determined New technologies to enhance
Slide 31: Technology leadership
Technology leadership Lower GHG emissions, improved resource recovery Indexed well-to-wheels GHG emissions intensity, % 125 Imperial proprietary technologies 100 75 California CSS Mining Venezuela SAGD SA-SAGD Kearl Average barrel CSP heavy dilbit synthetic Boscan dilbit dilbit* dilbit refined in U.
Slide 32: Imperial's priorities
Imperial’s priorities Focus on the things most within our control Safety and operational integrity Cost management Asset performance Project execution Value of integration Imperial │ 2016 2015 │ 32
Slide 33: Question period
Question period
Slide 34: Scrutineers' report
Scrutineers’ report Lara Pella, Corporate Secretary
Slide 35: Annual Meeting of Shareholders
April 29, 2016 Annual Meeting of Shareholders Delivering superior, long-term value Imperial │ 2016 │ 35