Treasurer s s Department 2005/06 Recruiting

Transcription

1 Treasurer s s Department 2005/06 Recruiting

2 Global Energy Industry Growth World oil and gas demand growing Chemical business expanding Independent power growing Dynamic Environment Rapid advances in technology Competitive landscape changing dramatically Abundant Opportunities Vast new areas being opened up for development Emerging markets hold enormous potential customer base Critical role for finance to meet the challenges of the industry 2

3 Industry Themes Financial Objectives Shareholder value Financial strength/flexibility High return on capital employed Constancy of Purpose Capital intensive business Long term horizon Geopolitical dynamics Consolidation Economies of scale Geographical diversification Large scale initiatives Technology Alternative fuels Liquefied Natural Gas (LNG) Gas to Liquids (GTL) Deepwater drilling Real time information 3

4 2004 Financial Highlights Financial - 20 year shareholder return: 16%/yr. - Assets: $195 billion - Revenues: $298 billion ( 04)( # 2 Fortune Global Net Income: $25.3 billion ( 04)( $15.5 billion (1H 05) #1 Fortune Global One of seven AAA-rated US companies - Largest non-government owned petroleum company 4

5 Employing Cutting Edge Technology 5

6 Keys To Our Success Strategies, Operating Philosophies and Competitive Strengths - Strategies Disciplined approach to capital investment Profitable growth in selected areas and businesses Most efficient competitor Leading-edge edge technologies Operational excellence Continuous improvement - Philosophies Methods are as important as results - Competitive Strengths Exceptionally high quality people Unsurpassed functional and geographic diversity Strong global brands, leading positions in key business segments Well-positioned for the future 6

7 ExxonMobil at a Glance Upstream (Houston, TX.) Exploration Development Production Gas Marketing Upstream Research Supported by: Exxon Mobil Corporation (Worldwide HQ in Irving, Texas) Chemicals (Houston, TX.) Downstream (Fairfax, VA.) Refining & Supply Fuels Marketing Lubricants & Petroleum Specialties Research and Engineering Ten staff and service functions-- --including Treasurer s - Operate in over 200 countries - Employs 85,000 people - Produce 2.6M barrels of oil, 9.9BCF of gas daily - Petroleum product sales: 8.2M barrels daily - #1 among global petrochemical companies 7

8 Scope of Operations: 200 countries Upstream (~40 countries) Sales Net Income ~10% ~65% Resource base of 73 billion oil equivalent barrels Proved reserves: 22 billion oil equivalent barrels World s s largest non-government gas producer World s s largest non-government gas reserves holder Industry leader in upstream investments and technology Largest power producer in Hong Kong Downstream (~200 countries) Premier refiner and marketer of petroleum products 45 refineries in 25 countries Strong fuels/lubes brand recognition ~80% ~20% Chemicals (Sales in 150+ countries) ~10% ~15% 90% of asset base in businesses with #1 or #2 position Strong synergies with Downstream 8

9 International Exposure - More than two thirds of ExxonMobil s s assets are outside the U.S. - Wide range of complex financial and managerial challenges Norway U.K. Netherlands Calgary Toronto Belgium France Virginia Texas Bermuda Azerbaijan Kazakhstan Germany Italy Qatar Sakhalin Japan Venezuela Nigeria Brazil Thailand Malaysia Hong Kong Chile Angola Argentina Saudi Arabia Singapore Indonesia Australia 9

10 The Business Environment - Capital-intensive intensive $113 billion in capital employed - Long-term, high risk opportunities - Significant risk to manage - forex - inflation - physical - cost - price - tax/fiscal/legal - environmental - interest rate - political - technology - Size and diversity tend to steer us towards bearing risk typically self-insure maintain very large deductibles for 3rd party coverage rarely use derivatives to transfer risk; never for speculation 10

11 Corporate Treasurer s s Organization Vice President and Treasurer Assistant Treasurer Global Shared & Corporate Services Business/Credit Services Global Cash Mgmt. Risk Mgmt./ Insurance Benefits Finance & Invstmt. Affiliate Finance Corporate Capital Markets & Planning Upstream Treasurer Chemicals Treasurer Dwnstrm Treasurer Irving Houston Fairfax Affiliate Treasurer s Organization XXXXXXX 11

12 Our Challenge - Financing The Business - Enhance shareholder returns through prudent use of leverage - Manage capital structure to avoid constraints on the business - Minimize financing costs while balancing risk - Manage cash flows centrally to minimize risk and maximize return - Undertake attractive financing critical to project success LONG HISTORY OF FINANCIAL INNOVATION XXXXXXX 12

13 ExxonMobil Treasury Careers Maximizing Your Potential First few years Next few years Later Many start in HQ - Dallas, Texas Assignments in: Capital Markets & Planning Affiliate Finance Benefits Finance & Investment Risk Mgmt & Insurance Global Cash Mgmt Assignments in Business Services / Regional Offices Houston Fairfax Domestic & international assignments of increasing responsibility Affiliates Segment HQs HQ - Dallas 13

14 ExxonMobil Treasury Careers Designed for long-term growth - Focus on executive development - Promotion from within; development through job rotation - Development and high expectations to achieve personal success - Collegial, supportive peer environment - Employees are partners in career decisions - Balance quality of life with professional career Literally, a world of opportunity exists with a multitude of international opportunities 14

15 Projects in Corporate HQ in Irving - Capital Markets & Planning Capital structure Competitor analysis Debt portfolio management Scope: $16G Capex $9G Consolidated Debt - Affiliate Finance Affiliate borrowing Worldwide corporate structure Scope: 200 Countries - Benefits Finance & Investment Funding policies Investment strategies In-house asset management Scope: $35G Benefit Obligations $18G Plan Assets - Global Cash Management Banking, cash Commercial paper Foreign exchange Scope: $300G Revenues - Risk Management & Insurance Manage corporate risks Affiliate insurance & claims Scope: Worldwide 15

16 $600 Million Chad Cameroon Project Finance - Project to develop and transport landlocked oil 1 billion barrels recoverable oil Requires 650 mile pipeline through Cameroon Total project cost: $3.7 billion - Objective: Mitigate project risk - Financing is highly complex Gov t multilateral lending agencies Legal structure Timing/ability to repatriate funds Domestic and int l l taxation Partner financing issues Contractor selection Degree of leverage Local political considerations 16

17 ExxonMobil Culture - Analytical, intellectual, probing - Long-term approach - Unwavering ethics - Collegial - partners with colleagues, operations and senior management - Consensus building - Premium on candor - Independent-minded - Many investment banking functions managed in-house - Dedication to shareholder value 17

18 Why ExxonMobil? Unparalleled Opportunity - Unrivaled international opportunities for people with strong financial backgrounds - Dynamic, capital-intensive, intensive, technology-driven industry - Challenging career opportunities with global scope - Commitment to long-term career growth - Opportunities aligned with abilities, efforts - Competitive, contribution based compensation 18

19 ExxonMobil Financial Management Careers What we are looking for... - Well-developed communications and interpersonal skills - Excellent analytical skills - Geographic mobility - Creativity and innovation - Demonstrated leadership capability - Flexibility to handle multiple tasks 19