TotalEnergies SE Ordinary Shares

So welcome, everybody, for this presentation of 2025 results and the objective for 2026. We are from London. It is sunny, like it's sun for the shares of TotalEnergies until we speak. So we'll see after that, after this call. And I'm happy to be here today with the executive committee members. You know all of them, but not Catherine. Catherine, you could stand up, which is our new member in charge of people and social engagement and all global services. That's Catherine. And there's another person which is next to us that you need to know, which is Arnaud Le Foll. Arnaud is our deputy CFO. You will have a chance to listen to him today. We'll make a presentation in two big parts and two focus in the middle, so to change. So Jean-Pierre will introduce the first. We'll have, of course, safety moment. It will be done. And the, I would say, safety sustainability part will be done by Nicolas Terrasse, our president upstream. Then we'll have Jean-Pierre who will make review of the 2025 results. Then two small focus. One, Namibia by Arnaud. Because Arnaud, before to be deputy CFO, was the one in charge of the negotiation of Namibia. Let's have the opportunity to let him listen to him. And then Stéphane will come in the focus of data centers, AI, from as a way as a business for us but also what we do internally so just to focus and then i will take the last part about what are the objectives for 2026 so it should be normally if we are respecting the timing not sure it should be one hour one hour five minutes we'll see uh but be patient when you have time to ask your question so nicola flow is yours to connect over here

Good afternoon, everyone. So first, let me take a minute for a sustainability moment. We thought for this sustainability moment, we'd share with you a very concrete illustration on what we're doing to fight methane emissions. And to fight methane emissions, the first step is to detect them. So what we did last year is we installed in all our sites a network of detection and monitoring system, fixed, continuous. And what you see in the footage here is a picture or video taken in Argentina, in Neuquén. And we are just commissioning an infrared camera. And this infrared camera detected what is not a fire, but it's a... It's methane, and in fact, it's methane coming from underground, from a pipeline which had a pinhole, a very small hole, and was leaking methane in fairly modest quantities. Still, this was detected. This was, of course, immediately fixed. So the pipeline was excavated on the leakage fixed. But this really illustrates the role and benefit of permanent methane detection to reach near zero methane emissions, which are objective by 2030. So let me now move to safety. So you see on the slides, we are on a journey of continuous improvement in safety, both for safety at work and for process safety. So for safety at work, you see on the left part of the slide our total recordable injury rate, which has been continuously decreasing. And last year, we... We were below 0.5 event per million man hour. So I think we are pleased to be ahead of our peer group. We are not happy, in fact, is that we had one fatality last year. This happened in Angola. during the offloading of drilling casings from a rig to a platform supply vessel, where one person working on board the supply vessel was crushed by those drilling pipes. Manoj Kumar, he was 51 years old, he was married, he had one child. And after the accident, what we did is what we owed to him, which is to take very strong action to reinforce the safety of deck operations on board our supply vessels by putting more physical barriers, steel frames for pipe offloading operations, but also by taking very strong organizational measures in terms of supervision of the dock operations on board our supply vessels. For process safety and the prevention of major risk, it's illustrated on the right part of the slide with a reduction of the number of primary losses of containment on our sites, which have been decreased by 60% since And so we are continuing to work on that front. Today, more than ever, we want to ensure everyone working on our sites, either staff or contractors, can return home safely. And we aim to achieve zero fatality in our operations. I am now coming to our emissions. On here, we are really pleased that in 2025, we reached and even exceeded all our emission reduction targets. So I spoke about methane just before. Now we are at minus 65% in our methane emissions compared to 2020. We had a target of minus 60%. And as I mentioned, we are monitoring this super closely in order to reach near zero methane in three, four years. For greenhouse gas, looking at our scope one and two, greenhouse gas emissions, you see that last year for oil and gas operations, we reduced the emission by one million ton compared to 2024. And we have a cumulative reduction of 38%. Also, the gradual evolution of our sales mix is driving down the lifecycle carbon intensity of our products, of the products we're selling. And you see the figure here, minus 19% in 2025 compared to where we were in 2015. On the last point, but not the least one, is that we've invested $1 billion in energy efficiency improvement program over 23, 25. This is paying off. It's paying off with a reduction in our emissions, because the actions implemented through this program resulted in a reduction of 2 million tons of CO2 equivalent emissions less. But it's also paying off in terms of dollars, because this program has generated around $200 million annually of energy and CO2 savings from hundreds, in fact, of actions on our various sites. So this was about emissions. And now I'm going to hand back the floor to Jean-Pierre.

Thank you very much. Good afternoon. So I will present to you the 2025 results and I think the key achievement of the year. So you know we have a pretty well-balanced strategy, integrated strategy, anchored on two pillars. The first one, oil and gas, and the second one, gas and LNG. Let me go through the main achievements of 2025, so starting with oil and gas and oil in particular. So you see that you know that we started up two main oil and gas fields, one in the US with Ballymore, another one, another deep offshore development in Brazil with Merufor. Nanibia, it's a very clear achievement of 2025 year. So entering in the block, till now operated by GALP, supporting the Mopan discovery. So entering into that block, of course, is a very clear achievement, confirming this Nanibia as a new, I would say, golden province for total energy. Arnaud will come back on that to give you more details about that. To prepare the future, so we have reloaded our portfolio, exploration portfolio. You see here the different geographies in which we are very active in 2025. On the gas and LNG side, Rio Grande, so with FID, we sanctioned the project, the fourth train in Rio Grande project, with an additional 1.5 million tons per year of additional LNG of tech. Acquisition of additional interest in Malaysia. So you know that we entered into Malaysia very recently. So confirming the willingness of Total Energy to build a hub that is perfectly positioned to supply the gas market in Asia in the coming years. And continuing the integration, the upstream gas integration in the US with additional acquisition of dry gas in another . And on top of that, end of 2025, we announced the agreement with Neonext, in fact, to merge our upstream assets with those of Neonext, creating one of the largest oil and gas, or the major oil and gas players in the UK, aiming to deliver synergies. So to summarize, yes, we grow. We are a growing company. So you see here the figures. 2025, 4% upstream growth. You know that the guidance were above 3%. So we are largely above the guidance. At the same time, we keep the discipline. I will come back on the CAPEX. Here you see the figure for OPEX, OPEX per barrel. So the best OPEX per barrel among our peers. $5 per barrel. Of course, it's very important for us to keep this advantage to face a possible low price environment. And very, very important in our views, the fact that we were able to deliver 120% proof reserve replacement rates. That means that we, the proof reserve we have at the end of the year, at the end of 2025, will cover 12 years of 2025 production. On the other pillar, so integrated power, so another year of delivery of our strategy, more than 20% net power production growth, both coming from renewable and from CCGT, from flexible assets. We mentioned here three main achievements of the year. You know the agreement we signed with DPH that will, in fact, accelerate our gas-to-power integration in Europe, supposed to be closed mid of 2026. Stefan will come back on that. So we surfed, I would say, on the wave created by data center to sign 6 terawatt per year PPA with data center, in fact. And implementing our model. So at COD, as you know, we recycle the capex, the capital. And so we successfully signed. different in the UK, in Greece, in Portugal, in France, in 25, recycling the equivalent of $2 billion. Scorecard for 2025. Clearly, we are a growing company, delivering of our objectives. First, more energy, growing energy, clear growth regarding energy production. 5% when you combine the growth coming from oil and gas and the growth coming from electricity. More specifically on the oil and gas, I already mentioned the fact that we achieved close to 4% growth. You know that the targets were above 3%. And for electricity net production, we increased the production by almost 20% between 2024 and 2025, reaching more or less 50 TWh in 2025. Refining utilization rates. So we were clear that during the first semester, ASC has to face some technical incidents, problem of reliability of some of the assets in France or in the US. The second semester, this has been fixed. And so given this performance during the second semester, you see that globally, all in all, over the full year, so refining utilization rate were in line with the targets we had. LNG cells are growing 10% more compared to last year, in line with the growth in production. And finally, on this topic, more energy. So renewable growth installed capacity. So 24 gigawatts of growth renewable capacity at the end of the year. We were at 26 gigawatts end of 24. That means that in the course of 2025, we're able to put into production 8 gigawatts of additional growth renewable capacity. And it is the pace we need to achieve 8 gigawatts per year to achieve the target we have for 2030. So more energy, less emissions. I will not come back on the figures, because already Nicolas presented that. Just to mention, to summarize, that we are able to lower the emissions, maintain scope one and scope two on our operations, while at the same time being a growing company, 5% more energy produced in 2025. More energy, less emissions is good, but it's better, of course, to grow the free cash flow to supply the shareholder returns. We have, of course, two main drivers. The first one, maintaining the discipline on OPEX and maintaining this differentiation advantage we have, having OPEX per barrel at $5 per barrel. And CAPEX, we'll come back on that later. So we were, of course, in the guidance at $17.1 billion. So globally, the CFFO, I think, was not exactly at the level we anticipated when we gave the objective 25, but not very far at $28 billion. So delivering, in our view, a robust cash flow in 2025. So now some figures regarding this 2025 performance. So starting on the left-hand side of the slides, the cash flow and the contribution of the different business units to this performance. So $28 billion of cash flow generated by your operation. You see here the different contributions of exploration and production. Traduction of the growing cash flow and the fact that I will comment that later, the cash flow are accretive. The growth is accretive. Second portion, integrated LNG. So suffering in 2025 in markets with low volatility, but compensating for the downward in prices by additional production. I mentioned to you 10% growth regarding production and sales. Integrated power at $2.6 billion, so in line with our expectations. So we have the target to have a cash flow above $2.5 billion for 2025. And downstream, $6.2 billion, so both ARC and marketing and services. I think it's a demonstration of the resilience of the company and the integration between ERC and marketing and services. Once again, with better utilization rate during the second semester downstream, ERC was able to capture the good margin that we benefited from in the second part of the year. The uses, so I think the yellow parts of the graph, So we used slightly above $17 billion for CapEx, so both organic CapEx acquisition minus divestments. 8 and the shareholder returns with two components, the first one being dividends, so 8.1. So it's the cash outs linked to the dividend taken into account via fixed rates we have in the course of 2025. So it's growing dividends. And we execute the program for an amount of $7.5 billion globally on the full year. The net adjusted income reached $15.6 billion. And so we continue to deliver the best-in-class profitability, so return on equity at $13.6 billion, and the best-in-class ROAC at 12.6%. The net income EFRA, so after taking into account non-recurring adjustments, it's $13.1 billion for 2025. And this has been done. Maintaining strong balance sheets, so the gearing at the end of the year were below 15%, so at 14.7%. So globally, total shareholder return 15.6%, so dividend plus buyback, so representing a payout. When you compare this return to shareholder to the cash flow we generated in 2025, so it's a payout close to 55%. Now, CapEx. So I already mentioned that. So discipline, of course, maintained through the year 2025. So the guidance, 15 to 15.5. And so the final figure, 15.1. 16, sorry. 16. 17, sorry. 17.1, yes. And so this, you see the repetition, the splits between the different businesses. So more or less one-third devoted to new oil and gas projects, and close to 3.5 billion to low-carbon energy, the main component of that being integrated power. This figure is the translation, the traduction, of $16.8 billion spent on organic capex, so the spending on the existing portfolio, the existing assets, plus 3.9 devotee to acquisition, minus 3.6 to divestments. So that means that the M&A was quite balanced in 2025. But if you add the two figures, you end up with a figure at $7.5 billion. So that means that we continue to be very active on our portfolio, divesting mature assets and replacing them by assets with better performance and implementing our strategy regarding, in particular, integrated power. So the main acquisition we made for Integrated Power is VSB, the German renewable player. So I already mentioned the US, Malaysia, and on the opposite side, divestment. So it's mature assets in Nigeria, in Congo, in Nkosa, just to give you these two examples, in Argentina, Vakumerta. assets, and on top of that, all the countries I already mentioned regarding the implementation of our strategy, the recycling of the CapEx, the capital for integrated power. We sold our investment in the US and in Europe. Let's move in more details to look at the upstream performance in 2025. So once again, a growth by 4%. And feed it by, of course, a low decline. We benefited for our portfolio of a decline by around 4% per year. And on top of that, as you know, we have a very deep portfolio. And so in 2025, we were able to put on production additional barrels that globally contributed to 150,000 barrels of oil equivalent per day. And this production is accretive. So it's the demonstration. So we increase the production by 4%. But in a constant environment, we increase the upstream cash flow by 10%. What does it mean? That means that the baseline for our portfolio has, in this environment, $70 per barrel for Brent and $12 per million BTU for gas. So it generates $19 per barrel of CFFO. And the new projects, so I have a list, by the way, on the right-hand side of the slides. So this 150,000-barrel equivalent of additional production has, on average, More than $30 per barrel. So that means that, of course, with the new production, we increase the creativity of the portfolio. And so the difference between this $30 per barrel with the $19 per barrel for the baseline created an additional $700 million in 2025 regarding the CFFO. So integrated LNG, well, it's clear that in 2025, we had a narrowing spread between Asian markets and European markets, so the spread between the GKM and TTF that is lower than before. in most of the cases, below $0.5 per million BTU. So why? Because the market is more efficient. And so now, for obvious reasons, saving freight costs, the US LNG went in 2025 mainly to Europe, and on the opposite, Middle East LNG went majorly to Asia. So in that market, of course, it's generated less possibility of arbitrage between the two markets. And on top of that, we had low volatility. All in all, thanks to the growth, the 10% growth in production and sales I already mentioned for integrated LNG, we were able to more or less offset the low price environment, the low volatility environment, posting for integrated LNG CFA4 in 2025, $4.7 billion, so only 4% below 2024 CFA4. Integrated power, so we continue the execution of the strategy. I think you have here the figure of the progression, the increase between 2021 and 2025, so more than doubling the production between multiplied by three or multiplied by four CFFO and net operating income. And at the end of 2025, we have the ROHA close to 10%. Thank you. So we execute the strategy. Once again, we farm down different assets to recycle the capex, the capital. We sign this EPA acquisition, accelerating our integration in Europe. And we scale up data business with additional relations with tech, signing a PPA with data center to supply them with electricity. So a good achievement, confirming the objective we have for this business segment in 2025. Ordinary share. So you know that on the 8th of December of 2025, I think we will open a new chapter in the history of total energy in the US. So now our ordinary share, so the same share as the share that is listed in Paris is now listed on the Nile, so allowing, in fact, investors to buy the same share either in Paris or in the US. And by the way, by doing that, we have a listing almost around the clock from 9 AM in Paris time to 4.30 in New York time. The objective is clear. We will ease the life of our investors by doing that. We will, of course, try to reach new shareholders that were not able or that do not want to invest in total energy for the air. And so it's the objective we have in the coming months to try to capture additional investors through wealth manager and financial advisors. And on top of that, by the way, by doing that, we have an option to use this listing, these shares listed in New York as a currency for a potential M&A in the U.S. So the scorecards, the benchmark, the performance of total energy compared to the performance of our peers with four main metrics, the first one being the ROAC. Once again, we are the best in class in terms of ROAC. I think for the fourth consecutive years, in our view, it's a clear demonstration that we can be a leader in the transition while delivering top profitability ROAC. Second TSR, so Total Shareholder Returns, Best TSR in 2025 at 28%, so meaning that if you have invested in total share on the 31st December 2024, at the end of 2025, considering the reinvestment of the dividends, you will have a gain of 28%. Proved reserves life index, so very good and very differentiation factor compares mainly to Chevron, Shell, and BP. So we maintain the 12-year reserves. Very good achievements, meaning that with the reserves we have in our portfolio, we are comfortable to feed the growth beyond 2030. An upstream production cost, low cost, $5 per barrel. So it's a clear competitive advantage that we want to keep. I think I will end the presentation by this slide. I've already commented the TSR, so you know pretty well the policy of Total Energy regarding the dividend, so in contributing to this TSR. So in 2025, the performance of the share was best in class, plus 20%. So we strongly believe that our share continues to be under-evaluated. This is, in our view, an illustration that the strategy of total energy is now well understood by the market. And to summarize, growth, accretive growth, discipline on cost, maintain capex as anticipated, and maintaining opex per barrel at low level. And on top of that, delivering all the growth we have in mind on both pillar, oil, oil and gas, on one hand. integrated power on the other. Thank you.