Exxonmobil Energizing Change

7/23/2019 Exxonmobil Energizing Change

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ExxonMobilExxonMobilPRESENTED BY PHIL H. LATIMIER, Ph.D.PRESENTED BY PHIL H. LATIMIER

, Ph.D.


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FINAL PROJECTFINAL PROJECT

SHAREHOLDER VALUE

& CORPORATE OVERNANCE


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Hi!"o#$ o% "h Co'()n$

1882 Standard Oil Trust

Acquirement of Petroleum Interests

!" of control # $ono%ol&

John D. Rockefeller


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(.S. Su%reme )ourt ordered t*e dissolution ofStandard Oil Trust

3' Se%arate )om%anies

Jersey Standard" and "Socony

Became

Exxon and Mobil

*+**


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,e-t To /ecades

0uildin of 0usiness

Production %i%elines refinin researc*4

Since t*e end of 5orld II

6-%anded mar7et more t*an 1!! countries

1

6--on 9 $o:il ; 6--on$o:il

.> :illions $erer

,ear < 8 :illions of Sa?in


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No)-)$! ExxonMobil

Is :ased in Houston Te-as.

2!!3

Stroner 6arnin Performance o?er t*e Histor&


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Co#(o#)" M)n)#/!

Lee Raymond,

Chairman and

Chief Executive

Officer

Rex W.

Tillerson,

President

Harry

Longell,

Executive !ice

President

Edard "."alante,

#enior !ice

President


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Bo)#- Si0

# :eteen 1! and 1 mem:ers

El1"ion o% Di#1"o#!2

# S*are*olders Selection

M)n-)"o#$ R"i#'n"2# ,o director o?er =! &ears.

# Annuall& e?aluation of Performance

Bo)#-


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S")n-in Co''i""!

Co'(n!)"ion Co''i"" /isc*are t*e 0oard of /irectors res%onsi:ilities relatin to t*e e?aluation and

com%ensation of t*e )or%orationBs )*ief 6-ecuti?e Officer and ot*er seniore-ecuti?es.

Bo)#- A%%)i#! Co''i"" $onitor com%liance it* ood cor%orate o?ernance standards Identification of qualified indi?iduals to :ecome 0oard mem:ers Cecommend to t*e 0oard director nominees for election at t*e annual meetin

of s*are*olders

A-3i!o#$ Co''i"" on Con"#ib4"ion! Pro?ide o?ersi*t and direction to t*e )or%orationBs o?erall contri:utions

o:Decti?es %olicies and %rorams


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S")n-in Co''i""! 51on".6

Fin)n1 Co''i""

# Ce?ie t*e )or%orationBs financial %oliciesstrateies and ca%ital structure

# )reate re%orts and recommendations to t*e 0oardof /irectors

P4bli1 I!!4! Co''i""

# Ce?ie t*e )or%orationBs %olicies %rorams and

%ractices Ex14"i3 Co''i""

# It function *en t*e 0oard of /irectors is not insession.


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S")n-in 1o''i""! 51on".6

A4-i" Co''i""

)onduction of t*e )or%orationBs financial re%ortin %rocess.

Interit& of t*e financial statements and ot*er financial information

)or%orationBs s&stem of internal accountin and financial controls.

)or%orationBs com%liance it* leal and reulator& requirements.

Performance of t*e )or%orationBs internal audit function.

T*e inde%endent auditorsB qualifications %erformance andinde%endence.

Annual inde%endent audit of t*e )or%orationBs financial statements.


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Boo7 V)l4 8i"h!Boo7 V)l4 8i"h!


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C)l14l)"ion o% "h 8ACCC)l14l)"ion o% "h 8ACC

9::*9::*

Kd = 6.1%

Ki = 3.7%

Kp = 4.9%

Ks = 5.4%


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9::* 51on"69::* 51on"6

Kr = 5.5%

Kn = 5.9%

Ka = 3.2%


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9::99::9

Kd = 6.2%

Ki = 3.7%

Kp = 4.3%

Ks = 3.3%


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9::9 51on"69::9 51on"6

Kr = 3.3%

Kn = 3.9%

Ka = 4.05%


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9::;9::;

Kd = 6.8%

Ki = 4.3%

Kp = 6.3%

Ks = 9.3%


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9::; 51on"69::; 51on"6

Kr = 9.3%

Kn = 10.1%

Ka = 5.51%


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+.2"

Our )alculation

+.+1"


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8ih"- M)#in)l Co!" o% C)(i")l8ih"- M)#in)l Co!" o% C)(i")l

9::*9::*

Long Term Debt

at 5.55 %

Common Equity

at 5.93 %

BP Long Term DebtBP Common Equity

$ 547,,

!"eig#t .5

$ &,,

!"eig#t .'

$ &,5(,(9,44$ 77,45&,3(


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9::* 51on"69::* 51on"6


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9::99::9

Long Term Debt

at 5.( %

Common Equityat 3.'( %

BP Long Term DebtBP Common Equity

$ 39(,,

!"eig#t .49

$ &99,,!"eig#t .3&

$ '&&,(3(,3(4$ (43,(7,'5(


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9::9 51on"69::9 51on"6


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9::;9::;

Long Term Debt

at (.4 %

Common Equityat &.' %

BP Long Term Debt BP Common Equity

$ 434,,

!"eig#t .3'

$ &7,,!"eig#t .35

$ &,&5,337,5' $ 35',3&7,3('


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9::; 51on"69::; 51on"6


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In3!"'n" O((o#"4ni"i! S1h-4lIn3!"'n" O((o#"4ni"i! S1h-4l

9::*9::*


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IOS )n- 8MCC S1h-4l!IOS )n- 8MCC S1h-4l!

9::*9::*


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9::99::9


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9::99::9


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9::;9::;

IOS - 8MCC S h - lIOS - 8MCC S h - l


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9::;9::;


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FORE


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FORE


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OC6E Strateies

(%stream /onstream and c*emicals

o%erations normall& use t*e local currenc&

e-ce%t in *i*l& inflationar& countriesLatin America Sina%ore4.

)rude and natural as use (S /ollar.

$ala&sia Indonesia Anola ,ieria6quatorial Fuinea and t*e $iddle 6ast4


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OC6E Strateies

$a7es limited use of currenc& e-c*ane

contracts.

Ceduce t*e ris7 of ad?erse forein

currenc& mo?ements related to certain

forein currenc& de:t o:liations .


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OC6E Strateies

Lo ris7 in c*anes in currenc& rates

5*&G

)or%oration sie.

Feora%*ic di?ersit&.

)om%lementar& nature of t*e :usinesses.


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ExxonMobil S"#)"i!ExxonMobil S"#)"i!

$a-imiation of Profita:ilit&

# )a%ital 6-%enditure are focused

ncre!sin" #i$e ncre!sin" &lo'!ll(

ncre!sin" )echnolo"(

*+ee, f-,-re rod-c, /-!li,( Re-ireen,s

*Red-ce nironen,!l ec,s

*#!fe,( #(s,es

*oer per!,ion!l os,s

*rod-ce :i"her ;!l-es rod-c,s

*oer os, R! +!,eri!l


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Identif& and Pursue all attracti?e %erforationso%%ortunities

# Cesearc* and /e?elo%ment# !" of oil reser?es are on :& o?ernments.

# (%stream o%eration in more t*an '! countries

In?est in %roDects t*at deli?er su%erior return

# 2!!3 Ceturn of )a%ital of 21"

# 6--on is ell %ositioned for lon#term rot*.

# 6-%loration and Cesearc* in alternati?e ener&.

# In?est in oil com%an& forecast of %erformance4


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$aintain 0est in )lass o%erations in all as%ects

# Flo:all& interated Su%%l& )*ain # Strateic Alliances

Pro?ide ualit& ?alue %roducts and ser?ice to

costumers Lead Industr& in 6fficienc& and 6ffecti?eness

#2!!3


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$a-imie ?alues from leadin edetec*nolo&

# Annuall& In?estment of !! millions

Im%ro?in and $aintenance of Imae

#


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S"o17 o% M)=o# Co'("i"o#!S"o17 o% M)=o# Co'("i"o#!


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M)#7" V)l4M)#7" V)l4

RR


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R3n4!R3n4!

N" In1o'N" In1o'


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N" In1o'N" In1o'


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i *::


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P#!n1 in Mo# "h)n *::P#!n1 in Mo# "h)n *::

1o4n"#i! ...1o4n"#i! ...

6--on and $o:il merer

# Kertical Interation

Oraniational Structure

# Flo:al unctional 0asis

O%erational Intereat& $anaement S&stem

)a%italie on interation it* ot*er6--on$o:il :usiness

P i M h *::


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P#!n1 in Mo# "h)n *::P#!n1 in Mo# "h)n *::

1o4n"#i! ...1o4n"#i! ...

*ddi,ion of :-!n Ri"h,s ,o i,sor,!folio

*nolen, ,o #ocie,(

*oc!l plo(ees

*#-ppor, ,o o-ni,ies

*&lo'!l n,e"r!,ion

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Exxonmobil Energizing Change