Exhibit 99.1
Imperial
September 21
2016
Investor Day
Cautionary statement
Statements of future events or conditions in these materials, including projections, targets, expectations, estimates, and business plans, are forward-looking statements. Such statements are not guarantees of future performance and involve a number of risks and uncertainties. Actual future results, including demand growth and energy source mix; production growth and mix; project plans, dates, costs and capacities; first production dates; costs to develop; production rates, production life, and resource recoveries; cost savings; product sales; financing sources; and capital and environmental expenditures could differ materially depending on a number of factors, such as changes in the price, supply of and demand for crude oil, natural gas, and petroleum and petrochemical products; availability and allocation of capital by Imperial; currency exchange rates; political or regulatory events; project schedules; commercial negotiations; regulatory and third-party approvals; unanticipated operational disruptions; unexpected technological developments; and other factors discussed in these materials and Item 1A of Imperial’s most recent Form 10-K available at www.sedar.com and www.sec.gov. Imperial’s actual results may differ materially from those expressed or implied by its forward-looking statements and readers are cautioned not to place undue reliance on them. Imperial undertakes no obligation to update any forward-looking statements contained herein, except as required by applicable law.
All financial information is presented in Canadian dollars, unless otherwise indicated.
In these materials, certain natural gas volumes have been converted to barrels of oil equivalent (BOE) on the basis of six thousand cubic feet (Mcf) to one barrel (bbl). BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf to one bbl is based on an energy-equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency ratio of 6 Mcf to 1 bbl, using a 6:1 conversion ratio may be misleading as an indication of value.
All reserves and contingent resources estimates provided in these materials are effective as of December 31, 2015, and based on definitions from the Canadian Oil and Gas Evaluation Handbook and are presented in accordance with National Instrument 51-101, as disclosed in Imperial’s Form 51-101F1 for the fiscal year ending December 31, 2015.
Except as otherwise disclosed herein, reserves and contingent resource information are an estimate of the company’s working interest before royalties at year-end 2015, as determined by Imperial’s internal qualified reserves evaluator.
Reserves are the estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, from a given date forward, based on: analysis of drilling, geological, geophysical and engineering data, the use of established technology, and specified economic conditions, which are generally accepted as being reasonable. Proved reserves are those reserves which can be estimated with a high degree of certainty to be recoverable. Probable reserves are those additional reserves that are less certain to be recovered than proved reserves.
Contingent resources do not constitute, and should not be confused with, reserves. Contingent resources are those quantities of petroleum considered to be potentially recoverable from known accumulations using established technology or technology under development, but are currently not considered to be commercially recoverable due to one or more contingencies. Contingencies that preclude the classification of Imperial’s contingent resources as reserves include, but are not limited to, the need for further design and the associated uncertainty in development costs and timelines; regulatory approvals; need for internal approvals to proceed with development; lack of market access; and the need for further delineation analysis to improve certainty of resources.
Contingent resource volumes represented in these materials are technical best estimate volumes, considered to be a realistic estimate of the quantity that may actually be recovered; it is equally likely that the actual quantities recovered may be greater or less than the technical best estimate. Estimates of contingent resources have not been adjusted for risk based on the chance of development. There is uncertainty that it will be commercially viable to produce any portion of the resource, nor is there certainty as to the timing of any such development. Significant positive and negative factors relevant to the estimate include, but are not limited to, the commodity price environment and regulatory and tax uncertainty.
The estimates of various classes of reserves (proved and probable) and of contingent resources in these materials represent arithmetic sums of multiple estimates of such classes for different properties, which statistical principles indicate may be misleading as to volumes that may actually be recovered. Readers should give attention to the estimates of individual classes of reserves and contingent resources and appreciate the differing probabilities of recovery associated with each class.
The term “project” as used in these materials can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports.
Imperial | 2016 | 2
Why Imperial?
Distinct competitive advantages that deliver long-term value
Asset base
High quality, high performing assets across the portfolio
Operational excellence
Effective technical, operational and financial risk management that enhances value
Value chain integration
Significant synergies across the full value chain including ExxonMobil relationship
Growth opportunities
A large inventory of attractive opportunities to support future upstream growth
Technology leadership
An unparalleled history of creating value through research and innovation
Shareholder value
Demonstrated commitment to delivering value in all business environments
Imperial | 2016 | 3
Energy fundamentals
Global megatrends will drive the world’s demand for energy
Population
Economy
Quality of life
Technology
Increasing populations
Growing economies
Improved living standards
Advances in energy efficiency
Imperial | 2016 | 4
Energy demand
Global demand to increase 25% by 2040, oil & gas remain key
Energy demand, quadrillion BTUs
750
+ 25%
500 Renewables1
Coal
250 Gas
Oil
0
2014 2040
Gas demand driven by power generation
+ Fastest growing major energy source
Oil remains largest energy source
+ Meets 90+% of all transportation needs
Outlook assumes major efficiencies
Source: ExxonMobil 2016 Outlook for Energy,
1Renewables include hydro, biomass / waste, nuclear and other
Imperial | 2016 | 5
Responsible development
Dual challenge to meet demand, reduce environmental impact
Safe
Reliable
Affordable
Abundant
All energy sources required
Climate policies to affect energy mix
Investments must compete globally
Technology and innovation key
Imperial | 2016 | 6
Liquids challenge
Significant new production required to offset natural decline
Global liquids production, mbd
120
90
New 50+
60 mbd
Existing
30
0
2016 2040
Global decline of 4-5% per year New supplies needed from all regions Major ongoing investment required Technology key to competitiveness
Source: International Energy Agency, ExxonMobil 2016 Energy Outlook
Imperial | 2016 | 7
Canada’s opportunity
Oil sands represent large, accessible liquids resource base
Access to world’s oil reserves
Restricted
Other
Open to private sector
Canada
(97% oil sands)
World class resources
Relative political stability
Balanced regulatory environment
Competitive fiscal terms
Leader in responsible development
Source: Oil and Gas Journal
Imperial | 2016 | 8
Global competitiveness
Highest quality oil sands competitive on a global basis
Breakeven Brent price, US$
125
100 mining
75
in situ
50
25
0
Brazil North Sea GOM West Africa Canada North America oil sands tight oil
Source: IHS, Assumes a 10% internal rate of return
Imperial | 2016 | 9
Oil sands
Unique technical and operational requirements
Production, mbd
3
2
In situ
1
Mining
0
2005 2010 2015
Production split between in situ & mining
History of technology and innovation
Economies of scale fundamental
Specialized expertise
Source: CAPP
Imperial | 2016 | 10
Business environment
Several challenges, time of uncertainty and opportunity
Commodity prices
Market access
Policy reviews
Global competition
Current period of low oil prices
Environmental, regulatory reviews
Global competitiveness pressures
Pipeline, market access uncertainties
Imperial | 2016 | 11
Scope of operations
Nationwide leadership across the full value chain
Syncrude mining
Kearl mining
Research
Cold Lake in situ
Rail terminal
Sarnia refinery
Fuels marketing
Strathcona refinery
Sarnia chemical
Nanticoke refinery
Imperial | 2016 | 12
Business model
Deliver superior, long-term shareholder value
Long-life, competitively advantaged assets
Disciplined investment and cost management
Value-chain integration and synergies
High-impact technologies and innovation
Operational excellence and responsible growth
ExxonMobil relationship
Imperial | 2016 | 13
Company priorities
Disciplined focus on performance, execution and creating value
Integrity
Execution
Performance
Integration
Base business fundamentals
+ Maximizing asset performance
+ Capturing cost and organizational efficiencies
Progressing growth opportunities
+ Developing enabling technologies
+ Creating optionality on scope and pace
Promoting industry competitiveness
+ Advocating sound, science-based policies
+ Collaborating with stakeholders
Imperial | 2016 | 14
Safety performance
Committed to a workplace where “Nobody gets hurt”
Operations
Contractors
Laboratories
Offices
Total incidents per 200,000 hours worked1
1.0
0.8
0.6
5-yr
0.4 average
2015
0.2 YTD
0.0
Canadian industry Imperial
1Equivalent to 100 workers for one year
Imperial | 2016 | 15
Organizational effectiveness
Definitive steps to enhance efficiency, increase effectiveness
Above-field personnel1, indexed %
100
Contractors - 22%
75
50
Employees
25
0
2014 2015
“Clarify. Simplify. Focus.” mindset
Realigning capacity with business need
Retaining institutional knowledge
$200M reduction in “above-field” costs
1Excludes development project personnel
Imperial | 2016 | 16
Integration & synergies
Delivering competitive advantage in all business lines
Upstream
Oil & natural gas production
Downstream
Refining & marketing products
Chemical
Commodities & specialties
IMO / XOM value-added capabilities
Equity crude placed in highest netback markets
Cost-advantaged feedstocks for refineries & chemical
Highest value sales channels for petroleum products
Multiple and optimized transportation networks
Access to industry-leading technologies and know-how
Imperial | 2016 | 17
Technology leadership
Unparalleled commitment, history of research and innovation
Canada’s first research department
Cyclic steam stimulation patent
Steam-assisted gravity drainage patent
Solvent assisted technology pilots
First lube oil hydrofining
First horizontal well in Canada
Paraffinic froth treatment patents
New Calgary research facility
IMO
$1 billion
annual R&D
spend
XOM
Lower costs
Improve performance
Reduce environmental impact
Imperial | 2016 | 18
Imperial
Upstream
Upstream portfolio
Completing period of unprecedented liquids growth
In situ
Cold Lake Growth portfolio
Mining
Kearl Syncrude
Natural gas
Unconventional growth portfolio
Research
Oil sands
Production, kbd
500
Highest liquids production since 1989
Highest total production since 1995
400
300
Gas
200
100
0
Liquids
1985
1990
1995
2000
2005
2010
2015
Imperial | 2016 | 20
Core asset growth
Large, long-life oil sands portfolio
Kearl
Mining - PFT 71% interest
Syncrude
Mining - upgrader 25% interest
Cold Lake
In situ - CSS 100% interest
Production, kbd
400
300
200
100
0
1985 1990 1995 2000 2005 2010 2015
Imperial | 2016 | 21
Cold Lake: world-class in situ operation
Best-in-class operational performance
Cyclic steam stimulation
100% IMO owned
Producing since 1985
1.7B
bbls
2P reserves1
165
kbd
average production1
Large, high quality bitumen resource
Highly efficient operation
Significant, long-term growth potential
1IMO share, before royalties
Imperial | 2016 | 22
Continuously improving resource recovery
Achieved through technology, innovation and best practices
Cold Lake demonstrated recovery, %
80
60
2010+
2000’s
40
1990’s
1980’s
20
1970’s
0
Thermal Pilots First horizontal well
Commercialization of cyclic steam stimulation
Megarow steaming 3D seismic analysis
Limited entry perforations Infill recovery processes
Liquid addition to steam Steamflood
Imperial | 2016 | 23
Maximizing steam utilization
Achieving enhanced economic, environmental performance
2008 vs. 2015, indexed %
100
75
50
25
0
Fresh water to bitumen ratio
Total fresh water use
Recycling more than 95% of water
Reducing energy intensity
Increasing production
Imperial | 2016 | 24
Industry-leading reliability
Achieved through continuous improvement
2012-15 average gas turbine1 reliability, %
100
99
98
97
96
95
+7 days annual uptime
Global fleet
Cold Lake
Leader in equipment reliability
Effective maintenance strategies
Optimizing turnaround intervals
1OEM fleet data
Imperial | 2016 | 25
Achieving lower cost per barrel
Mature, lean asset continuing to see improvements
Unit cash opex, US$ indexed %
100
75
50
25
0
Production, kbd
180
120
60
0
2014
2015
1H16
2015 industry unit cash opex, C$
Cold Lake
0
5
10
15
20
Source: FirstEnergy Capital Corp.
Imperial | 2016 | 26
Kearl: next generation oil sands mining
Driving operational performance and synergies
Mining without upgrader
71% IMO owned
Producing since 2013
3.2B
bbls
2P reserves1
220
kbd
targeted production2
Large, high-quality bitumen resource
Capturing economies of scale
Environmental leadership
1IMO share, before royalties
2Total IMO+XOM production, before royalties
Imperial | 2016 | 27
Proprietary froth treatment
Producing pipeline-quality bitumen without an on-site upgrader
Kearl
+Diluent
Bitumen
Dilbit
“Paraffinic”
froth treatment
Sediment & water
Refinery
Asphaltenes
Other
mines
Bitumen
Synthetic crude
“Naphthenic” froth treatment
Sediment & water
On-site upgrader
Refinery
Imperial | 2016 | 28
Achieving lower cost per barrel
Cost discipline, economies of scale fundamental to success
Production, kbd
150
100
50
0
Unit cash opex, US$
indexed %
100
75
50
25
0
2014
2015
1H16
More than 50% reduction in unit opex Expansion benefiting cost profile Continuing improvement efforts
Imperial | 2016 | 29
Mine performance improvement
Optimization ongoing, integrating with plant performance
2014 vs. 20151, %
100
75
50
25
0
Best-in-class
Truck
Shovel
Truck
Shovel
Availability
Effective utilization
Best-in-class availability
Utilization improving with plant uptime
Enhancing ore processing
1SMART industry data
Imperial | 2016 | 30
Plant performance improvements
Doing more with less, extracting value from plant operations
Solvent additions, indexed %
2014
2015
- 60%
0
25
50
75
100
Bitumen recovery rate1, % 2014
+ 11%
2015
0
25
50
75
100
Systematic, integrated team approach Sustainable value capture Exceeding performance expectations
1Bitumen recovery prior to asphaltene rejection
Imperial | 2016 | 31
Enhancement opportunities
Activities focused on efficient capacity creep
Existing scope
Implementation of operational learnings to enhance capacity and optimize asset
Incremental scope
Equipment upgrades and utilities integration to enhance volumes and efficiencies
Major scope
Major additions to the mine and plant that enhance Kearl’s operational scope
Imperial | 2016 | 32
Syncrude: pioneer of oil sands mining
Improvement underway to capture full potential
Mining with upgrader
25% IMO owned
Producing since 1978
1.1B
bbls
2P reserves1
76
kbd
average production1
High value, synthetic crude production Competitive mining performance Intense improvement focus
1IMO share, before royalties
Imperial | 2016 | 33
Reliability improvement
Value is driven by producing the incremental barrel
Production1, kbd
80
60 turnarounds Reliability risk management
&
40fire Planning and execution excellence
of
Impact Focus on upgrader performance
20
0
2014 2015 1Q16 2Q16
1IMO share, before royalties Imperial 2016
Syncrude focus areas
Improving resilience in a low price environment
2015 cash conservation, %
Market capture
Scope and timing
Efficiencies
US$10 per barrel opex reduction Enhanced execution of key programs Work selection and fit-for-purpose scope Workforce productivity
Imperial | 2016 | 35
Enhancement opportunities
Leveraging existing and owner-driven oil sands expertise
Reliability
Utilization of expertise, competency and equipment strategies to enhance performance
Synergy
Identify further opportunities to leverage owner-provided services with joint venture capability
Integration
Implement significant, strategic ties between major assets for mutual benefit
Imperial | 2016 | 36
Sustainable, structural savings
Driving upstream costs down with continuous improvement
Continued market capture
Ongoing rate, term negotiation
Expanded scope of reverse auctions
Productivity enhancement, alignment
Scope, structure and technology
Innovative, efficient new work approaches
Optimizing workflow, organizational synergies
Continued sound risk management
Imperial | 2016 | 37
Upstream costs per barrel
Asset portfolio remains competitive at full cost
Unit cash opex1, US$
30
20
10
0
2014 2015 1H16
- 35%
Realizing economies of scale
Implementing scope optimization
Sustainable efficiency gains
1Data as reported in company 10-K, 8-K filings
Imperial | 2016 | 38
Leader in technological advancement
Objective to improve economics, reduce environmental impact
Production
Refining
Distribution
Combustion
Well-to-wheels GHG emissions intensity, indexed %
125
100
75
Imperial breakthrough technologies
CSS dilbit
Mining synthetic
SAGD dilbit
SA-SAGD dilbit*
Kearl dilbit
Avg barrel refined in US
Other solvent technologies*
Source: IHS CERA, “Comparing GHG Intensity of the Oil Sands and the Average US Crude Oil Today”, 2014
*Imperial estimate
Imperial | 2016 | 39
Imperial’s advantage:
Research & innovation
Watch the video on Imperial’s YouTube channel
YouTube
Upstream resources
Large, high quality resource base with significant potential
In situ
Aspen
Cold Lake Exp. Growth portfolio
Mining
Non-aqueous extraction
Natural gas
Unconventional growth portfolio
Research
Oil sands
Year-end 2015 resource base, billion boe1
25
20
15
10
5
0
Contingent Resource
On Hold
Development Pending
Probable
Proved
Other
Mining
In situ
1IMO share, before royalties, definitions from the Canadian Oil and Gas Evaluation Handbook, presented in accordance with National Instrument 51-101
Imperial | 2016 | 41
In situ growth portfolio
Multiple opportunities, development planning ongoing
Aspen 100% IOL
Fort McMurray
Corner 63% IOL
Clyden 27.5% IOL
72.5% EM
Cold Lake
Expansion 100% IOL
Edmonton
Calgary
Resource potential
~5 billion barrels bitumen1,2
Top-tier quality
Enabling technology
SA-SAGD / other solvent technologies
Potential scope
Multiple phases, 55-75 kbd per phase
Estimated cost
Average ~$2B per phase
Regulatory process
Aspen application in 2013
Cold Lake Expansion application in 2016
First production
2020+
1 IMO share, before royalties
2 Resource potential consists of 0.8 billion bbls 2P Reserves, 1.7 billion bbls Contingent Resources Development Pending and 2.9 billion bbls Contingent Resources On Hold
Imperial | 2016 | 42
In situ technology advancements
SA-SAGD provides step-change improvement opportunity
Pilot results, indexed %
100
75
50
25
0
SAGD
SA-SAGD
Industry
IMO
Cumulative steam oil ratio
Initial capital per flowing barrel
Economic, environmental gains
Ability to scale efficiently
Technology ready to apply
Imperial | 2016 | 43
Aspen
First potential commercial SA-SAGD project
In situ with solvents
100% IMO owned
1st production 2020+
1.2B
barrels
resource
potential1
75K
bbl/d
gross production
per phase1
Environmental, economic technology advantages
Two phase project, ~$2 billion per phase
Progressing technical, regulatory filing 2013
1IMO share, before royalties
Resource potential consists of 0.8 billion bbls 2P Reserves and 0.4 billion bbls Contingent Resources Development Pending
Imperial | 2016 | 44
Cold Lake Expansion
Development of Grand Rapids formation with SA-SAGD
Production well
Steam and solvent (diluent) injection well
Glacial Till
Colorado Shale
Steam and solvent (diluent)
Grand Rapids
Heated bitumen flows to well
Clearwater
In situ with solvents
100% IMO owned
1st production 2020+
550M
barrels
resource
potential1
55K
bbl/d
gross
production1
Environmental assessment, consultation
One phase project, ~$2 billion initial capex
Regulatory application submitted March 2016
1IMO share, before royalties
Resource potential consists of 0.55 billion bbls Contingent Resources Development Pending
Imperial | 2016 | 45
Upstream summary
Distinct competitive advantages deliver long-term value
Asset
base
+ High quality
+ Long-life
+ Oil sands focus
Operational
excellence
+ Industry leading
+ Integrity & reliability
+ Cost efficiency
Growth
opportunities
+ Large inventory
+ In situ focus
+ Capital discipline
Technology
leadership
+ Innovation
+ Asset improvement
+ Breakthrough
Imperial | 2016 | 46
Imperial
Downstream & Chemical
Downstream & Chemical portfolio
Operational excellence and integration drive performance
Refining
Nanticoke Sarnia Strathcona
Marketing
Esso Mobil 1
Chemical
Sarnia
Research
Sarnia
Operations, %
100
75
50
25
0
10-year avg
2015
Volumes, kbd
500
250
0
Refinery utilization
Advantaged crude
Petroleum product sales
Imperial | 2016 | 48
Strong cash flow, selective investments
More than $8 billion net cash generated over the past 5 years
Net cash, C$ billion
2
1
0
2010-14 average
2015
1H16
Strong cash generating capabilities
Continued structural advantages
Low sustaining capital required
Imperial | 2016 | 49
Refining: efficient, value-driven business
Integration elevates advantage in mature industry
Nanticoke, Ontario
Sarnia, Ontario
Strathcona, Alberta
421
kbd
refining capacity
92
percent
2015 utilization
Well-positioned, competitive assets
Integrated, 100% advantaged feeds
Leveraging global best practices
Imperial | 2016 | 50
Refining ranking
Strong performance in North America, top-tier in Canada
1st Quartile
2nd Quartile
3rd Quartile
4th Quartile
Non-energy cash opex
Process unit utilization
Energy efficiency
IMO refineries
Canadian industry excluding IMO
Source: 2014 Solomon survey, includes 96 refineries in North America, 13 in Canada
Imperial | 2016 | 51
Continuous improvement
Global leadership, ongoing competitive focus
2015 refinery utilization, %
100
90
80
70
» Improvement vs. 2010
IMO
Canada*
North America
Global
Source: BP Statistical Review of World Energy 2016, company data
* Excludes IMO
Imperial | 2016 | 52
Downstream enhancements
Evaluating further value creation
Cogeneration
Strathcona | Earliest FID 2017
Capture gas-power spread
More efficient steam
Leverage carbon tax credits
Diluent Recovery Unit
Strathcona | Timing to be determined
Recycle local diluent pool
Reduce supply costs
Leverage rail terminal
Imperial | 2016 | 53
Optimizing value
Competitive advantage through scale, skill and integration
Currently shipping 400 kbd by pipeline
Crude sold to 35+ refineries worldwide
Real-time midstream optimization
Imperial | 2016 | 54
Rail terminal
Strategic asset provides options to reach high value markets
Edmonton, Alberta
Location advantage
Start-up April 2015
Joint
venture
with Kinder
Morgan
210K
bbl/d
gross
capacity
Equity crude flow assurance
Mitigation of apportionment impact
Ability to reach new, less accessible markets
Imperial | 2016 | 55
Fuels & Lubes: marketing excellence
Delivering valued products to customers nationwide
Wholesale
Commercial
Industrial
1,700+
BW
retail sites1
478
kbd
2015 sales
Focused on premium markets
High capability distributor network
Leading market share in all segments
1Full conversion to branded wholesaler (BW) model following close of sale of company-owned sites
Imperial | 2016 | 56
Retail conversion
Sale of remaining 497 company-owned sites
Company-owned, agent-operated
Pre-sale: ~30% of sites
Post-sale: 0% of sites
Imperial
Supplies fuel & brand standards
Owns real estate & facilities
Agent
Operates retail site
ESSO
Proceeds: $2.8B
Proven operators
Financial strength
Business efficiency
Growth focus
Branded wholesaler owned and operated
Pre-sale: ~70% of sites
Post-sale: 100% of sites
Imperial
Supplies fuel & brand standards
3rd party
Operates retail site
Owns real estate & facilities
Imperial | 2016 | 57
Continuous development
Committed to enhance retail offering and grow value
Existing, successful partnerships
Long-term supply agreements
Commitment to grow the Esso brand
Fuel technology development
Customer experience enhancements
Standardized loyalty programs
Imperial | 2016 | 58
Chemical: unique, commodity business
One of Canada’s leading producers of chemical products
Sarnia, Ontario
Refinery integration
Location advantage
945
kt
2015 sales
$287
million
2015 record earnings
Top-tier asset, specialty customers
Integrated manufacturing facility
Leveraging proprietary technologies
Imperial | 2016 | 59
Leadership in polyethylene
Innovation in injection and rotational molding since 1983
Outstanding resin quality
Expert technical knowledge
Solutions for complex designs
Imperial | 2016 | 60
Fully integrated with Sarnia refinery
Diversified, low-cost feedstocks enhance profitability
Feedstock mix, %
100 50 0
Propane
Midwest ethane
Refinery off gas
Spot
Cost advantaged ethane
Refinery off gas
2009-2014 2015+
Indexed %
250 200 150 100 50 0
Unit margin
Sales volume
2010
2011
2012
2013
2014
2015
Imperial | 2016 | 61
Gas cracker furnace project
Improves energy efficiency, increases high value production
Cutting-edge technology
Capacity creep
Feed-in July 2016
7%
capacity
increase
$5M
annual cost
savings
Improved energy efficiency
Reduced maintenance costs
Increased polyethylene sales
Imperial | 2016 | 62
Downstream and Chemical summary
Distinct competitive advantages deliver long-term value
Asset base
+ Location advantage
+ Operational scale
+ Low sustaining capital
Operational excellence
+ History & expertise
+ Global best practices
+ Leading reliability
Value chain integration
+ Customer focus
+ Logistics optimization
+ Advantaged feeds
Technology leadership
+ Product development
+ Customer support
+ Asset performance
Imperial | 2016 | 63
Imperial
Corporate
Financial performance
Demonstrating value of integration through the business cycle
Cash flow from operating activities, C$ billion
5 4 3 2 1 0
2011
2012
2013
2014
2015
Five-year average, %
Upstream
Downstream & other
Imperial | 2016 | 65
Capital efficiency
Maximizing investment value and life cycle performance
Return on capital employed, %
25 15 5 -5
10-year average
3-year average
IMO
HSE
SU
CNQ
CVE
Source: company publications
Imperial | 2016 | 66
Financial strength
Strong balance sheet, priority access to financial markets
2Q16 debt to capital, %
40 30 20 10 0
CNQ BBB+
HSE BBB+
SU A-
IMO AA+
CVE BBB
Ratings1
Leverage XOM relationship
Borrow on most attractive terms
Optimize use of floating rate debt
Maintain capital structure flexibility
1Based on S&P Global debt rating
Imperial | 2016 | 67
Shareholder distributions
Over $10 billion returned to shareholders in the last 10 years
2006-15 average payout ratio1, %
IMO HSE CVE SU CNQ
0 5 10 15 20 25 30 35
2006-15 total distributions, C$ billion
SU IMO HSE CNQ CVE
0 3 6 9 12
Source: company publications, Yahoo Finance
1Operating cash flow payout includes annual dividends and share repurchases as a percentage of annual cash flow from operating activities
Imperial | 2016 | 68
Share buybacks
Proven history of returning cash and preserving value
Million1
2,000
1,500
1,000
500
0
1995
2015
Shares outstanding
Repurchased 50% of shares
Non-dilutive equity strategy
Priority on shareholder interests
1Adjusted for three-for-one stock splits (May 15, 1998 and May 23, 2006)
Imperial | 2016 | 69
Dividends
Priority to pay a reliable and growing dividend
Dividend per share1, C$
0.60
0.40
0.20
0.00
2005
2010
2015
100+ years of consecutive payment
21 years of consecutive growth
5.5% 10-yr compounded growth rate
Increase to $0.15/sh payable 2Q16
1Adjusted for three-for-one stock split (May 23, 2006)
Imperial | 2016 | 70
Capital expenditures
Recently completed growth, evaluating future opportunities
Annual average, C$ billion
6 5 4 3 2 1 0
2001-2009
2010-2015
2016-2020
Kearl, Nabiye projects complete
+ Added nearly 200 kbd capacity
Sustaining capex under C$1B annually
+ Down 30+% from earlier estimates
Next tranche of growth likely in situ
+ Scope and pace to be determined
Imperial | 2016 | 71
Financial resilience
Strength provides flexibility under a range of oil prices
2016-20 annual average, C$ billion
4 3 2 1 0
Growth
Sustaining
Dividend1
$55
$45
$35
Dividend and capex
Cash flow from operations
Ability to meet highest priorities
Significant cash flow leverage
Options to pursue growth
Flexibility for new opportunities
1Dividend at current rate
Assumptions: Oil prices are US$ Brent, nominal cash flow, inflation 2.5%, FX = US$0.75 to C$1.00, continued industry production growth fundamentals
Imperial | 2016 | 72
Why Imperial?
Distinct competitive advantages that deliver long-term value
Asset base
High quality, high performing assets across the portfolio
Operational excellence
Effective technical, operational and financial risk management that enhances value
Value chain integration
Significant synergies across the full value chain including ExxonMobil relationship
Growth opportunities
A large inventory of attractive opportunities to support future upstream growth
Technology leadership
An unparalleled history of creating value through research and innovation
Shareholder value
Demonstrated commitment to delivering value in all business environments
Imperial | 2016 | 73
For more information:
imperialoil.ca | Twitter | YouTube | LinkedIn
For more detailed investor information, or to receive annual and interim reports, please contact:
Meredith C. Milne
Manager, Investor Relations
T: +1 (587) 476-4743
E: meredith.c.milne@esso.ca
Imperial Oil
505 Quarry Park Blvd SE
Calgary, Alberta T2C 5N1
Imperial
September 21 2016
Investor Day