2017 Shareholder meeting Morton H. Meyerson Symphony Center May - PowerPoint PPT Presentation

2017 Shareholder meeting Morton H. Meyerson Symphony Center May 31, 2017

Robust strategy in a dynamic market Brent Today’s market long on supply  $/Barrel 150 Growing demand  Dynamic markets, expect continued  volatility 100 Plans robust for any price environment  50 0 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 Source: Platt’s ExxonMobil 2017 shareholder meeting 2

World-class workforce delivering enduring value proposition Operational Portfolio of Technology Financial Efficient cost Value chain excellence opportunities leadership strength integration structure Superior reliability High-quality Enhancing long- Balance sheet Optionality allows Relentless focus and execution assets; large term value provides financial on costs and capture of the through disciplined inventory of through flexibility across capital efficiency highest value for approach and accretive innovation and the cycle each molecule effective risk investments discovery management ExxonMobil 2017 shareholder meeting 3

Long-term focus on rigorous capital allocation yields highest returns in the industry Upstream ROCE and Volumes 1 Downstream & Chemical ROCE and Petroleum Product Sales 1 ROCE '07 to '16 Average ROCE '07 to '16 Average Percent Percent 30 30 25 25 20 20 Chevron BP Chevron 15 15 Shell Total Total 10 10 Shell BP 5 5 2.0 2.5 3.0 3.5 4.0 4.5 2.0 3.0 4.0 5.0 6.0 7.0 2016 Volumes (MOEBD) 2016 Petroleum Product Sales (MBD) 1 Competitor data estimated on a consistent basis with ExxonMobil and based on public information. RDS 2008-2012 capital employed restated in 2013. 2016 Chemical sales not included: ExxonMobil 24.9 MT; Shell 17.3 MT; BP 14.2 MT ExxonMobil 2017 shareholder meeting 4

Addressing growing global demand Delivering benefits to society  Addressing the dual challenge:  − Providing affordable and reliable energy − Mitigating climate risk Creating shareholder value  ExxonMobil 2017 shareholder meeting 5

Affordable energy solutions are required to advance global prosperity U.N. Human Development Index 2014 Index 1.00 United States Norway X 0.75 People Living standards Oman China Bangladesh India = Nigeria 0.50 0.25 OECD Non-OECD 0.00 10 100 1000 10000 Energy needs 2014 Energy use per capita (thousand BTU/person/day) Source: United Nations, ExxonMobil estimates ExxonMobil 2017 shareholder meeting 6

Middle class to reach more than 5 billion people Energy demand Demand growth 2015-2040 Quadrillion BTUs Quadrillion BTUs Demand without efficiency 1,200 160 1,000 Energy Americas efficiency Mid East 120 800 Africa 600 80 Other AP Non-OECD 400 India 40 200 China OECD 0 0 Non-OECD 2000 2020 2040 Source: ExxonMobil 2017 The Outlook for Energy: A View to 2040 ExxonMobil 2017 shareholder meeting 7

All forms of energy are required to meet global needs Global mix of fuels Forecast Quadrillion BTUs Solar, Wind, and Biofuels 750 Nuclear Hydro Gas 500 Oil 250 Coal Biomass 0 1850 1900 1950 2000 2040 Source: Smil, Energy Transitions (1800-1960), ExxonMobil 2017 The Outlook for Energy: A View to 2040 ExxonMobil 2017 shareholder meeting 8

Global energy-related emissions are likely to peak and gradually decline Energy-related CO 2 emissions  Reducing direct emissions Billion tonnes 40  Helping consumers reduce emissions Estimate of Paris submissions  Committed research to progress technology 30 breakthroughs Rest of non-OECD India  Effective policy to reduce risks at minimal societal cost 20 China 10 OECD 0 2000 2020 2040 Source: ExxonMobil 2017 The Outlook for Energy: A View to 2040; UNFCCC COP21 Synthesis Report 2015; ExxonMobil analysis ExxonMobil 2017 shareholder meeting 9

Committed to research and contributing to solutions Research objectives:  − Fundamental science − Proprietary long-range technology − Inform policy decisions Collaborate with researchers at universities  and national labs Participate in IPCC, National Research Council  Active policy engagement, e.g. Climate  Leadership Council ExxonMobil 2017 shareholder meeting 10

Innovation enhances supply options and enables efficiency savings Global average intensity Technology unlocks new solutions  Index 2015 1.4 …and reduces CO 2 and energy intensity  1.2 − Natural gas reduces emissions − Lightweight packaging 1.0 − Lower-emission, higher-efficiency fuels and CO 2 / Energy lubricants 0.8 Pursuing reliable, scalable, affordable, and  0.6 Energy / GDP sustainable alternatives 0.4 CO 2 / GDP 0.2 0.0 1970 1980 1990 2000 2010 2020 2030 2040 Source: ExxonMobil 2017 The Outlook for Energy: A View to 2040 ExxonMobil 2017 shareholder meeting 11

Meeting IEA scenarios requires more than $11 trillion of investment Liquids supply/demand 1 Moebd 100 Reflects Paris submissions (IEA New Policies +87 80 Scenario) Moebd Natural decline in 60 absence of further ~2ºC investment Existing +57 pathway Supplies Moebd 40 (IEA 450 Scenario) 20 Existing Supplies 0 2015 2040 2040 Additional supplies needed 1 Based on IEA sources, excludes biofuels and includes NGLs ExxonMobil 2017 shareholder meeting 12

Leveraging technology to bring benefits to shareholders and society Responsibly meeting needs for affordable and reliable energy  Addressing environmental sustainability  Investing in communities  Highgrading asset and investment portfolio  Pursuing next-generation technologies  ExxonMobil 2017 shareholder meeting 13

35 consecutive years of per-share dividend growth Annual dividend growth rate Annual dividend up 8.8% per year over the  Percent last 10 years 12 '07 to '16 Announced 2Q17 dividend of $0.77 per  '12 to '16 share, up 2.7% from previous quarter 2016 8 Flexible share purchase program  More than $370B returned to shareholders  4 since the merger of Exxon and Mobil 1 0 0 0 0 S&P XOM CVX RDS TOT BP 2 1 Includes dividends and share purchases to reduce shares outstanding 2 TOT’s growth rates based on dividends in Euros; 2015 Dividend adjusted for timing impacts from implementation of scrip dividend program Source: Bloomberg ExxonMobil 2017 shareholder meeting 14

Risk management maintains license to operate and creates value  Ensuring personnel and process safety − Best-ever safety performance in 2016  Maintaining excellence in operations and project execution  Effectively managing security and geopolitical risks  Minimizing environmental impact ExxonMobil 2017 shareholder meeting 15

Understanding and addressing the needs of communities  Actively engage with stakeholders  Focus on human rights, community relations, and indigenous peoples  Local hiring, training, and supplier development  Strategic community investments in long-term social programs Education Malaria initiative Investing in women ExxonMobil 2017 shareholder meeting 16

Strategic choices across all business lines More than 100 projects in development 30% reduction near-term Upstream project costs 30% uplift cash generation from Downstream & Chemical projects 1 Conventional Increasing feedstock and logistics flexibility Heavy Oil Upgrading molecule value LNG Increasing higher-value products Note: ExxonMobil is supporting the State of Alaska as it progresses Alaska LNG 1 Incremental 2020 cash flow from operations of 17 projects with 2016-2019 start-up (estimate based on corporate plan price assumption and trendline estimates), versus 2016 cash flow from operations (base business) ExxonMobil 2017 shareholder meeting 17

Growing opportunity base in the United States Evolving portfolio since XTO acquisition,  about 700 KOEBD production 1 Montney/ Duvernay Growth in liquids-rich resources  Bakken Advantaged Permian position  Uinta / Piceance Utica/ Large, price-resilient inventory of drilling  Marcellus opportunities Raton Fayetteville San Juan 1 M net acres Ardmore/ Marietta Permian 1 Liquids-prone Capturing significant efficiency gains and Barnett  Haynesville Gas-prone applying technology Freestone Eagle Ford 1 Includes unconventional and conventional production / acreage operated by XTO ExxonMobil 2017 shareholder meeting 18

Significant opportunities from wellhead to customer Growing U.S. unconventional production  Investing in advantaged logistics and  manufacturing Advantaged feedstock, high-value sales  Optionality to maximize value  ExxonMobil 2017 shareholder meeting 19

Meeting global demand with leading Downstream and Chemical portfolios Expanding capacity on the U.S. Gulf Coast  Growing advantaged crude and gas processing  Manufacturing new, high-value products  Improving logistics capabilities  ExxonMobil 2017 shareholder meeting 20

Accelerated value capture High-potential exploration program  − Supported by proprietary seismic imaging technology More than 1.5 BOEB recoverable resource  discovered Progressing multi-phase development scope  KBD gross 300 Future potential 150 Liza Phase 2 Liza Phase 1 0 Sea floor view ExxonMobil 2017 shareholder meeting 21