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2016 Shareholders’ Meeting Presentation

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2016 Annual Shareholders’ Meeting, Tuesday, May 24

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2016 Shareholders’ Meeting Presentation

  1. 1. 2016 Annual Shareholders’ Meeting – total.com 2016 Annual Shareholders’ Meeting
  2. 2. Introduction Patrick Pouyanné
  3. 3. Group Results & Performance Patrick de La Chevardière
  4. 4. 2016 Annual Shareholders’ Meeting – total.com 4 47% decline in oil price in 2015 Oil price (Brent, $/b) 0 50 100 2006 2010 2016 First quarter 2016 average2015 average 52 $/b 34 $/b
  5. 5. 2016 Annual Shareholders’ Meeting – total.com 5 Resilient results in a challenging economic environment Adjusted net income B$ Change in adjusted net income % change 2015 vs 2014 for Total and peers* 10.5 B$ 2015 Upstream Refining & Chemicals Marketing & Services Other -65% -40% -15% Brent -18% -47% * BP, Chevron, ExxonMobil, Shell – public data
  6. 6. 2016 Annual Shareholders’ Meeting – total.com 6 Strong production growth Production Mboe/d Historic 9.4% production growth in 2015 1 3 2014 2015 2016 2017 2019 +5% per year 2014-19 +9.4% +4% 2.35 2.15 GLNG, Australia Moho Nord, Congo Laggan-Tormore, UK Termokarstovoye, Russia
  7. 7. 2016 Annual Shareholders’ Meeting – total.com 7 Strong contribution from Downstream Downstream cash flow from operations B$ 8 2011 2012 2013 2014 2015 Refining margin ($/t) 19 4917 36 18 4 Refining Lubricants Renewables Retail network
  8. 8. 2016 Annual Shareholders’ Meeting – total.com 8 Discipline on investments Exiting intensive investment phase Industry deflation Strict discipline on new projects Organic Capex 2014 2015 2016 2017+ 26 B$ 23 B$ < 19 B$ 17-19 B$ ~30%
  9. 9. 2016 Annual Shareholders’ Meeting – total.com 9 Discipline on costs Opex reduction B$ 2015 Opex savings target surpassed >1.2 0.8 1.5 2.4 >3 Revised 2015 target Achieved 2015 Initial 2015 target New 2016 target 2017 target Upstream Downstream Other
  10. 10. 2016 Annual Shareholders’ Meeting – total.com 10 Maintaining a robust balance sheet Net debt-to-equity ratio % Solid cash flow generation in 2015 Access to financial markets on attractive terms 2014 2015 28% 99 52 31% Brent ($/b)
  11. 11. 2016 Annual Shareholders’ Meeting – total.com 11 -20% Best performance among Majors in 2015 Adjusted net income* Cash flow from operations* Production growth* Return on equity 10% 10% -20% * % change 2015 vs 2014 for Total, BP, Chevron, ExxonMobil, Shell – public data
  12. 12. 2016 Annual Shareholders’ Meeting – total.com 12 Continued performance in Q1 2016 -25% 0%500 1,000 0 ** % change Q1 2016 vs Q1 2015 for Total, BP, Chevron, ExxonMobil, Shell – public data Adjusted net income* Upstream adjusted net operating income* * M$, for Total, BP, Chevron, ExxonMobil, Shell – public data and Total analysis Cash flow from operations** -20% Brent Downstream adjusted net operating income** Refining margin
  13. 13. Governance and Compensation Patricia Barbizet
  14. 14. 2016 Annual Shareholders’ Meeting – total.com 14 Evolution of the Group’s governance Board’s decision to recombine Chairman and CEO positions Appointment of a Lead Independant Director • Oversees the efficient running of the company’s governance structure • Relationships with shareholders
  15. 15. 2016 Annual Shareholders’ Meeting – total.com 15 An active and involved Board Board of Directors Specialized Committees 9 meetings 95% attendance rate 4 Committees: • Audit • Governance & Ethics • Compensation • Strategic 94% attendance rate 15 meetings
  16. 16. 2016 Annual Shareholders’ Meeting – total.com 16 Role of the Board in the Group’s key projects The Board approves main projects and reviews information on significant investments • January 27, 2015: information regarding extension of the ADCO concession The Board meets on industrial sites to continually improve the relevance of its decisions • October 28, 2015: meeting held in Abu Dhabi, visit of the ADCO site Example of the extension of the ADCO concession in Abu Dhabi
  17. 17. 2016 Annual Shareholders’ Meeting – total.com 17 New Directors Two appointments proposed to shareholders’ vote Maria van der Hoeven Former Executive Director of the International Energy Agency, Dutch Jean Lemierre Chairman of the Board of BNP Paribas, French
  18. 18. 2016 Annual Shareholders’ Meeting – total.com 18 Director representing Employee Shareholders Appointment of the candidate receiving the highest number of votes Charles Keller FCPE Total Actionnariat France, French Werner Guyot Nominated by the employee shareholders voting on an individual basis, German Renata Perycz FCPE Total Actionnariat International Capitalisation, Polish Approved by the Board of Directors
  19. 19. 2016 Annual Shareholders’ Meeting – total.com 19 Complementary skills and diverse profiles Board members following the 2016 Annual Shareholder’s Meeting 54% women nationalities 6 80% independence 12 members Upon voting of the resolutions approved by the Board
  20. 20. 2016 Annual Shareholders’ Meeting – total.com 20 Components of the compensation policy Amount set at the beginning of the fiscal year Fixed Linked to the performance of the past year Variable Linked to the results of the next 3 years Long-term compensation
  21. 21. 2016 Annual Shareholders’ Meeting – total.com 21 Compensation due for 2015 Patrick Pouyanné Chairman & CEO from December 19, 2015 Thierry Desmarest Chairman of the Board until December 18, 2015 Fixed €1,200,000 Variable €1,814,400 Long-term compensation 48,000 performance shares that may be vested after a minimum duration of 3 years under performance conditions Director’s fees €82,500
  22. 22. 2016 Annual Shareholders’ Meeting – total.com 22 Fixed compensation due to Patrick Pouyanné for 2015 Determined by the Board of Directors, on the recommendation of the Compensation Committee Criteria taken into account • Level of responsibilities • Practices of comparable sized companies Fixed portion increased to €1,400,000 in 2016 as Chairman & CEO €1,200,000 Fixed portion
  23. 23. 2016 Annual Shareholders’ Meeting – total.com 23 Variable compensation due to Patrick Pouyanné in 2015 Criteria taken into account * Max. increased to 180% for 2016 Economic performance Allocated (% of base salary) Max. (% of base salary) HSE / CSR Cost reduction Personal contribution 100% 88.2% 16% 14% 16% 16% 33% 33% Variable amount €1,814,400 • Max.: 165% of base salary* • Allocated: 151.2% of base salary
  24. 24. 2016 Annual Shareholders’ Meeting – total.com 24 Commitments to Patrick Pouyanné 25% of annual compensation 2 years of compensation Forced termination payment Retirement benefit Supplementary pension plan subject to performance conditions • Supplementary pension plan amount: 18.61% of annual compensation • Acquisition of pension rights subject to performance conditions, per year of service (up to 20 years): < 1.8% of compensation • Plan applying to all executive directors within the Company OR
  25. 25. Strategy & Perspectives Patrick Pouyanné
  26. 26. 2016 Annual Shareholders’ Meeting – total.com 26 BrentTotal share 20 40 60 80 100 120 140 160 2013 20162014 2015 20 40 60 80 100 120 140 160 avr.-13 oct.-13 avr.-14 oct.-14 avr.-15 oct.-15 Attractive 5.5% shareholder return in 2015 Share price (with dividends reinvested) and Brent € - Base 100
  27. 27. Statutory Auditors’ Reports Yvon Salaün, Ernst & Young
  28. 28. Question & Answer session
  29. 29. Resolutions put to vote
  30. 30. Closing
  31. 31. 2016 Annual Shareholders’ Meeting – total.com 31 SHAREHOLDERS’ MEETING STRASBOURG, MAY 31ACTIONARIA INVESTOR FAIR PARIS, NOVEMBER 18-19 SHAREHOLDERS’ MEETING TOURS, NOVEMBER 28 SHAREHOLDERS’ MEETING GENEVA, SEPTEMBER 1 SHAREHOLDERS’ MEETING LYON, OCTOBER 11 SHAREHOLDERS’ MEETING LONDON, NOVEMBER 23 NEXT ANNUAL SHAREHOLDERS’ MEETING ON MAY 26, 2017 Upcoming individual shareholders’ events

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