Results and Outlook February 2019
Consistently delivering Delivering on objectives Outstanding production growth • Capex and Opex discipline • Best-in-class Profitability • Strong cash flow growth underpins shareholder returns Integrating along the oil, gas and low carbon electricity value chains to capture upside ts e Attractive portfolio in hand to deliver the ts strategy post-2020 ts 1 2 2018 Results and Outlook 2
Safety, Total’s core value Cornerstone of operational efficiency Total Recordable Injury Rate for Total and peers* Saft (battery business) TRIR** Per million man-hours Per million man-hours 2 10 1 5 0.9 ts e 2013 2018 2016 2017 2018 ts ts 4 fatalities in 2018 Successfully implementing Total safety culture 1 2 * Group TRIR excl. Specialty Chemicals ** Acquired Saft in 2016 and integrated in Total reporting since 2017 Peers: BP, Chevron, ExxonMobil, Shell 2018 Results and Outlook 3
Oil market volatility Supply-demand and OECD inventories Mb/d, days of demand cover +1.3 Mb/d demand in 2018* 100 Increasing demand but sensitive to price and emerging market growth Supply Demand Growing supply: opposing trends OPEC & Russia announced 1.2 Mb/d • production cuts Debottlenecking US shale supply • Nov. 2018: 59.6 days Venezuela, Libya and export from Iran • Underinvestment in the industry • ts 85 e 2010 2018 ts ts Market fundamentally volatile 1 2 * Source: IEA 2018 Results and Outlook 4
Strong LNG demand growth driven by Asia Supportive government policies for natural gas 2015-30 LNG demand 2015-30 LNG supply Mt/y Mt/y 5% CAGR Other 500 500 Needs to be Middle East sanctioned 9% CAGR Europe Demand Under construction Rest of Asia 250 250 China Existing supply Japan Korea Taiwan ts e 2015 2018 2025 2030 2015 2018 2025 2030 ts ts +10% in 2018 (China +41%) Opportunity for low breakeven projects 1 2 2018 Results and Outlook 5
2018 results: consistently delivering
Consistently delivering strong results Best-in-class profitability with ROACE and ROE at 12% Adjusted net income Return on average capital employed (ROACE) B$ % 15% +28% 13.6 B$ Marketing & Services 10.6 B$ Refining & Chemicals 10% 8.3 B$ Integrated Gas, Renewables & Power* Exploration & Production* ts 5% Cost of net debt e ts 2016 2017 2018 Targeting 12% ROE at 60 $/b ts Brent ($/b) 44 54 71 1 iGRP: integrated LNG (upstream and midstream) + GRP assets 2 * E&P and iGRP restated for 2016-18 Peers: BP, Chevron, ExxonMobil, Shell – based on public data Segments include minority interests and allocation of Corporate costs 2018 Results and Outlook 7
Growing cash flow generation Increasing contribution from high margin new projects 2018 cash flow allocation Organic free cash flow B$ B$ > 15 B$ 10 CFFO 24.7 15.6 Capital investment 5 1.5 Buyback 2015 2016 7.7 2017 2018 Dividend ts e Sources Uses -5 ts Brent ($/b) 52 44 54 71 ts Organic pre-dividend breakeven < 30 $/b 1 2 2018 Results and Outlook 8
Exploration delivery underway Budget ~ 1.2 B$ in 2019 Opening a world-class play Novatek in Russia Discoveries in core area in South Africa #2 operator in the North Sea (Total, shareholder with 19.4%) 11B-12B Block NAMIBIA Glendronach (Total 60% Op) Alwyn Sheltand Gas Plant North-Obskoye Johan Sverdrup Yamal LNG Arctic LNG 2 SOUTH AFRICA Culzean Salmanov Jurassic Glengorm Elgin Franklin (Total 25%) Ekofisk Brulpadda 11B-12B Block (Total 45% Op) DUC Outeniqua Basin Nyakhartinskoye ts Recent discovery Recent discovery Total Acreage Recent discovery e Prospects Major facilities Projects with Total 0 100km 200km ts ts Significant gas condensate & light oil discovery > 20 Tcf discovered in 2018 Glengorm gas condensate discovery 1 Four other prospects ~250 Mboe , Maersk Oil portfolio North-Obskoye largest global discovery > 10 Tcf 2 Potential resources of ~1 Bboe Source: Novatek, Wood Mackenzie 2018 Results and Outlook 9
M&A highgrading portfolio and renewing reserves Strong 2018 proved reserve replacement of 157% 2018 E&P M&A and License extensions Proved and probable reserves B$ Bboe Maersk Oil (shares & debt) +1.4 Bboe 10 20 5 Main assets: Main assets: • Adnoc offshore • Martin Linge • Iara • Fort Hills • Lapa • Ichthys ts 10 e Additions Asset Sales 2017 2018 ts Organic cash ts breakeven ($/boe) <30 ~40 70% of 2P reserves in 8 countries, including 4 OECD 1 countries: Australia, Canada, Norway & USA 2 Note: 2P reserves as per SPE 2018 Results and Outlook 10
Downstream: best-in-class >25% ROACE Diversified portfolio generating stable cash flow Downstream CFFO 2018 Downstream CFFO B$ % ~6.5 B$ Refining Chemicals 7 ts 2016 2017 2018 e Marketing & Services ts ERMI ($/t) 34 41 32 ts Maintaining strong CFFO Non-cyclical M&S 1 while selling 8 B$ assets over 2015-18 Expanding Petrochemicals in US, Asia and MENA* 2 * Middle East & North Africa 2018 Results and Outlook 11
Strong balance sheet Delivering on objective to maintain gearing < 20% Net-debt-to-capital IFRS 16 impact in 2019 % 22% 21% Gearing ~+3% 15.5% Capital employed +5 to 6 B$ 12% DACF ~+1 B$ Adjusted net income ~0 ts 2015 2016 2017 2018 e ts ts 2.1 B$ non-recurring items in 2018 1 2 2018 Results and Outlook 12
Delivering on objectives 2018 objectives Target Realized ~ 16 B$ 15.6 B$ Capital investment > 4 B$ 4.2 B$ Cost reduction 5.5 5.7 Upstream Opex $/boe $/boe Production growth 6% 8% Downstream CFFO ~ 7 B$ 6.5 B$ ts Dividend increase 3.2% 3.2% e 5 B$ 1.5 B$ ts Share buyback ts 2018-20 2018 1 2 2018 Results and Outlook 13
Outperforming peers in 2018 Production growth Downstream ROACE % % 30% 5% Group ROACE Net-debt-to-capital -4% % % 15% 20% ts e ts ts 1 5% 2 Peers: BP, Chevron, ExxonMobil, Shell – based on public data 2018 Results and Outlook 14
Discipline and cash flow growth
Delivering outstanding production growth Best-in-class 5% CAGR for 2017-22 Production* growth Mboe/d > +9% 8 major start-ups in 2018-19 • Egina, Kaombo North, Ichthys 3 and Yamal LNG ramp-ups +8% • Iara 1, Kaombo South, Culzean and Johan Sverdrup start-ups 2.5 > 40% increase in LNG production Short cycle projects contributing ~60 kboe/d in 2019 ts 2 e 2017 2018 2019 Managing decline rate at ~3% ts ts 1 2 * EP + iGRP production 2018 Results and Outlook 16
Capital investment discipline 2019 capital investment Capital investment* B$ % Downstream 15.6 15-16 15-17 iGRP: Exploration Integrated & Production Gas Renewables & Power ts e 2018 2019 2020 Guidance ts Feb 2018 ~16 15-17 15-17 ts 1-2 B$ net acquisitions 1 2 * Organic Capex + net acquisitions iGRP: integrated LNG (upstream and midstream) + GRP assets 2018 Results and Outlook 17
Maintaining discipline on Opex Competitive advantage on cost Opex savings vs. 2014 base Production costs (ASC 932) B$ $/boe > 5 B$ 4.7 B$ 4.2 B$ 15 Downstream & Corporate 9.9 10 7.4 Upstream 5.9 5.7 5.4 5 ts 2018 2019 2020 e 2014 2018 ts ts Continuing to cut costs Targeting 5.5 $/boe in 2019 1 2 2018 Results and Outlook 18
Clear visibility on cash flow growth Debt adjusted cash flow (DACF)* B$ Strong contribution from 2018 project start-ups 30 70 $/b 3 B$ in 2019** from Kaombo, Ichthys, Egina • 26.1 60 $/b 71 $/b 22.2 Solid cash generation from acquisitions 50 $/b 2.5 B$ in 2019** from Maersk Oil, Brazil and 54 $/b • Adnoc offshore Capturing oil price upside, 2019 sensitivity 3.2 B$ for 10 $/b liquid realized price ts 10 2017 2018 2019 e ts ts +8 B$ in 2020 at 60 $/b vs. 2017 1 2 * ERMI = 35 $/t ** At 60 $/b 2018 Results and Outlook 19
Clear priorities for cash flow allocation 2018-20 1 2 3 4 Capital Balance Share Dividend investment sheet buyback Maintain 10% increase 15-17 B$ per year gearing < 20% 5 B$ over 2018-20 over 2018-20 grade A credit rating ts e 2019 vs. 2017: +6.5% 2018: 1.5 B$ ts Ending scrip dividend ts 2019: 1.5 B$ at 60 $/b 1 from 2019 AGM 2 2018 Results and Outlook 20
Preparing for future growth
Integrating climate into strategy Taking into account anticipated market trends Global energy demand Mboe/d Focusing on IEA 2 ° C oil projects scenario* with low breakeven 300 Renewables Expanding Nuclear along the Coal gas value chain Oil Natural gas Developing ts profitable & e 2017 2040 sizeable low carbon ts electricity ts business 1 2 * IEA Sustainable Development Scenario 2018 Results and Outlook 22
Oil & Gas: Building on our strengths Leveraging expertise in 7 core areas 1 2 3 4 Deepwater LNG Petrochemicals Retail & Lubricants Africa 5 Market leader Middle East & North Africa 6 ts Partner of choice e ts North Sea ts 7 1 #2 operator 2 2018 Results and Outlook 23
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