Annual Meeting. May 28, 2008

Transcription

1 Annual Meeting May 28, 28

2 Cautionary Statement Forward-Looking Statements. Outlooks, projections, estimates, targets, and business plans in this presentation or the subsequent discussion period are forward-looking statements. Actual future results, including demand growth and mix; ExxonMobil s own production growth and mix; the amount and mix of capital expenditures; resource additions and recoveries; ;project plans, timing, costs, and capacities; revenue enhancements and cost efficiencies; and integration benefits; and the impact of technology could differ materially due to a number of factors. These include changes in long-term oil or gas prices or other market conditions affecting the oil, gas, and petrochemical industries; reservoir performance; timely completion of development projects; war and other political or security disturbances; changes in law or government regulation; the outcome of commercial negotiations; the actions of competitors; unexpected technological developments; the occurrence and duration of economic recessions; unforeseen technical difficulties; and other factors discussed here and under the heading "Factors Affecting Future Results" in the Investor section of our Web site at exxonmobil.com. See also Item 1A of ExxonMobil s 27 Form 1-K. Forward-looking statements are based on management s knowledge and reasonable expectations on the date hereof, and we assume no duty to update these statements as of any future date. Frequently Used Terms. References to resources, resource base, recoverable resources, and similar terms include quantities of oil and gas that are not yet classified as proved reserves but that we believe will likely be moved into the proved reserves category and produced in the future. The discussion of reserves in this presentation generally excludes the effects of year-end price/cost revisions and includes reserves attributable to equity companies and our Syncrude operations. For definitions of, and information regarding, reserves, return on average capital employed, normalized earnings, cash flow from operations and asset sales, and other terms used in this presentation, including information required by SEC Regulation G, see the "Frequently Used Terms" posted on the Investor section of our Web site. The Financial and Operating Review on our Web site also shows ExxonMobil's net interest in specific projects. 2

3 27 Record Results Industry-leading safety performance Record financial performance Net Income $4.6 B ROCE 32 % Cash flow from Operations and Asset Sales Total Distributions to Shareholders * Capex $56 B $36 B $21 B * Includes dividends and share purchases to reduce shares outstanding 3

4 Proven Long-Term Approach Disciplined Investment Superior Cash Flow Growth in Shareholder Value Operational Excellence Industry Leading Returns 4

5 Investing for the Future Capex by Business Line $B 3 25 Chemical / Other Downstream Upstream Geographic Capex Distribution $89 Billion Invested from 23 to 27 Russia / Caspian U.S Asia Pacific / Middle East Canada / South America 5 Africa Europe 5 '3 '4 '5 '6 '7 '8 Estimate

6 Safety Leadership Lost Time Incident Rate Incidents per 2k hours U. S. Petroleum Industry Employee Benchmark* Employee Contractor.3 U. S. Petroleum.2 Industry Contractor Benchmark*.1. '1 '2 '3 '4 '5 '6 '7 Nobody Gets Hurt 6 * 27 Industry data not available

7 World Energy Demand Primary Energy Supplies Primary Energy MBDOE Average Growth / Yr Renewables 1.3% 1.5% 2.%.9% 15 Nuclear 1.7% 1 Coal Gas 5 1.2% Oil Renewables MBDOE Wind, Solar & Biofuels Hydro/Geo 1.5% 8.7% 2.% 2.7% 15 1 Biomass/Other Wind, Solar & Biofuels MBDOE Solar Biofuels Wind 9.9% 8.7% 1.5% 7.6%

8 Protect Tomorrow. Today. Reducing environmental impact of our operations Industry leading performance Preventing spills and releases Energy efficiency and cogeneration Flare reduction Refining Energy Intensity Indexed 15 Industry 1 XOM 95 9 '2 '4 '6 '7 * Environmental performance expectations Source: Solomon * 27 Estimated Solomon survey only prepared in even years Reducing environmental impact of consumer use of energy Mobil 1 Advanced Fuel Economy Next generation tire liners Lighter weight plastics Partnerships with product manufacturers Mobil 1 Advanced Fuel Economy 8

9 Protect Tomorrow. Today. Breakthrough Solutions Identifying proprietary breakthrough technologies Efficient, cost-effective, and global scale Lithium-ion battery Advanced vehicles and fuels On-board hydrogen conversion Carbon capture and storage Strategic research / collaboration Emerging energy technologies Coal Beds Pipelines Depleted Oil & Gas Reservoirs Saline Aquifers Carbon Capture and Sequestration 9

10 Technology Leadership Delivering long-term competitive advantage Unwavering commitment to research Disciplined, focused investment more than $3.5 billion since 23 Research priorities determined by business requirements Value capture maximized through rapid, global deployment 1

11 Superior ROCE Return on Capital Employed * 5-Year Rolling Average % XOM Return on Capital Employed * 27 - Business Segments % Upstream 5 Downstream 45 Chemical Competitors '3 '4 '5 '6 '7 XOM Competitors 11 * Competitor data estimated using a consistent basis with ExxonMobil, and based on public information

12 Upstream 27 Highlights Earnings $26.5 B ROCE 42 % Production volumes 4.2 MOEBD Resource adds Proved reserves adds 2BOEB BOEB Reserves Replacement* 11 % Capex $15.7 B *Excludes year-end price/cost effects and includes Canadian oil sands operations 12

13 Upstream 27 Major Project Start-Ups Statfjord Late Life Ormen Lange Not approved Tengiz Phase 1 Waddenzee Marimba KOEBD, Net 4 RasGas Train Start-Ups 13 Rosa

14 Upstream 28 Major Project Start-Ups Starling Volve ACG Phase 3 South Hook Terminal Adriatic Terminal Qatargas II Train 4 East Area NGL II Jerneh Jerneh B B Thunder Horse RasGas Train 6 Photo not approved Saxi/Batuque KOEBD, Net Start-Ups LNG Terminal Mondo 27 Start-Ups

15 Downstream 27 Highlights Refining & Supply Record financial performance Earnings $9.6 B ROCE 38 % Refinery throughput 5.6 MBD Petroleum product sales 7.1 MBD Operational excellence continues Environmental, energy efficiency Fuels Marketing Strategic initiatives delivering results More than $1 B self-help each year 15 Lubes Marketing Nearly 5 kbd/year new distillation capacity since 1995 Global capacity growth = 1 new refinery/3 years

16 Downstream and Chemical Fujian World Class Integrated Complex 16 Fujian venture formed in mid-27 World-scale, integrated refining and chemical complex Fuels marketing JV including approximately 75 retail sites Plant expansion start-up expected in 29; Base refinery and Fuels Marketing Venture in operation Participation across value chain; crude processing through marketing

17 Chemical 27 Highlights Record financial performance Earnings $4.6 B ROCE 34 % Operational excellence continues Safety, reliability, energy efficiency Strategic initiatives delivering results Over $5M AT self-help per year Investing in advantaged growth Capex of $1.8 B 17

18 Chemical Major Growth Projects Asia Pacific / Middle East Ethylene Capacities MT Announced Sources of Advantage Existing asset base Integration and scale 4 Advantaged feedstocks Existing Premium product focus 2 Saudi Arabia Fujian XOM Competitors Qatar Singapore 18

19 Record Results Normalized Earnings $B Chemical Downstream Upstream Net Income Superior results in all business segments Commitment to operations excellence 2 Capitalizing on competitive 15 advantages '3 '4 '5 '6 '7

20 Reliable and Growing Dividends Dividends per Share $/share Distributed $36 billion over past five years Paid dividends each year for more than 1 years Annual per share increases since '3 '4 '5 '6 '7 Dividends id d per share increased 4% from 23 vs. CPI of 13% 2

21 Cumulative Share Purchases Purchases to Reduce Shares Outstanding* $B XOM Competitors Distributed $82 billion during last five years and $28 billion in 27 Reduced shares outstanding by 2% since beginning of 23 3 Flexible and efficient 2 distribution tool to manage age capital structure 1 '3 '4 '5 '6 '7 21 * Competitor data estimated using a consistent basis with ExxonMobil, and based on public information

22 Increasing Ownership Indexed Growth per Share Since 23* % 25 Increasing ownership per share Strong per share growth in key business metrics 2 15 Contributes to increased earnings per share 1 5 Production Proved Reserves Refinery Throughput Chemical Prime Product Sales *27 metric per average share vs. 23 metric per average share 22

23 Growth in Shareholder Value Shareholder Returns $K 2 ExxonMobil Competitor Average* S&P 5 Disciplined Investment t 18 Value of Growth in 16 Superior Shareholder Operational $1, Invested Cash Flow Excellence 14 Value 12 1 Industry Leading Returns Years 1 Years 5 Years Growing Competitive Advantage 23 * Shell, BP and Chevron