Engine No. 1 Activist Presentation Deck | Slidebook.io

Engine No. 1 Activist Presentation Deck

May 2021, 83 slides

investor presentation | Engine No. 1

disclaimers | Engine No. 1

disclaimers | Engine No. 1

table of contents | Engine No. 1

part i executive summary the need for change at | Engine No. 1

the industry is evolving and so must carbon technologies growing long term business a failure to take even initial steps towards addressing long term business risk | Engine No. 1

has dramatically for shareholders over any relevant time period | Engine No. 1

this decline occurred while oil and gas are still the dominant forms of global energy | Engine No. 1

has pursued the most aggressive spending plans in the industry to chase production growth | Engine No. 1

board strategy eroded shareholder value before covid and left far more vulnerable | Engine No. 1

has been funding spending on low return projects by taking on large amounts of debt | Engine No. 1

this strategy has contributed to a decade of value destruction | Engine No. 1

which stands out even in a challenged industry | Engine No. 1

still has no credible plan to protect value in an energy transition | Engine No. 1

yet rather than changing its long term strategy is trying to change the subject | Engine No. 1

paints an unrealistic picture of the likelihood that carbon capture will obviate the need for change clear it is not a substitute international energy agency | Engine No. 1

and fails to accurately portray the relevance of its own carbon capture capabilities | Engine No. 1

for today and tomorrow requires real change | Engine No. 1

our nominees bring the successful and transformative energy experience that the board is missing | Engine No. 1

goff | Engine No. 1

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which remains foundational to federal new york times | Engine No. 1

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part a closer look at the issues issue failure to position for long term value | Engine No. 1

static view of the future represents poor risk management and risks continued value destruction | Engine No. 1

despite rhetoric has shown little interest in even gradually repositioning its business of transition readiness paid actual oils line | Engine No. 1

not just a climate issue a valuation issue for all long term investors | Engine No. 1

may currently be a good trade but long term goal should be becoming a good investment | Engine No. 1

while is focusing investors on its best assets many projects in portfolio offer less compelling returns | Engine No. 1

coal shows how quickly changes in demand can occur once alternative technologies provide a better product | Engine No. 1

change will surely be gradual but it is possible to begin bending the long term trajectory | Engine No. 1

with the right strategic oversight can still play a profitable role in the energy transition | Engine No. 1

issue rhetoric does not address long term business risk from emissions | Engine No. 1

has sought to obscure long term risk by distorting its long term emissions trajectory tee look | Engine No. 1

even by its own limited standards has gone backwards and aims to do worse in than | Engine No. 1

minimal investment in more advanced carbon capture mostly produces advertising | Engine No. 1

latest advertising blitz regarding a theoretical and unfunded carbon capture project lacks any real substance | Engine No. 1

despite claimed support long term strategy leaves it entirely unprepared for an actual carbon tax | Engine No. 1

a decade of promoting algae despite lack of viability shows a similar focus on advertising over reality | Engine No. 1

focusing on societal choices while trying to limit those choices is poor long term risk management | Engine No. 1

issue lack of capital allocation discipline | Engine No. 1

returns on upstream projects of have been falling for years even during times of higher prices pur wen | Engine No. 1

and peers are far more exposed to risk of declining demand than national oil companies | Engine No. 1

capital expenditures have outgrown cash generation despite declining returns | Engine No. 1

despite these dynamics has repeatedly committed to more aggressive spending than the industry | Engine No. 1

well before covid investors had turned against aggressively chasing production growth | Engine No. 1

and peers with a more disciplined risk management approach have fared much better | Engine No. 1

lack of capital allocation discipline unlikely to work any better going forward given long term uncertainty | Engine No. 1

issue little reason to trust spending discipline | Engine No. 1

clinging to plans until forced to change is not a strategy | Engine No. 1

we believe shareholders need a board that will maintain a consistent strategy of capital allocation discipline | Engine No. 1

history of shifting stances instills little confidence that board now has a coherent strategy | Engine No. 1

part fundamental issues issue lack of successful and transformative energy experience on the board | Engine No. 1

has for years filled its board with former without any energy experience | Engine No. 1

excluded nominees bring little relevant experience and track records of value destruction as board members | Engine No. 1

new directors do not fill the need for successful energy experience or fill other unmet needs | Engine No. 1

board went to great lengths to avoid adding directors with successful and transformative energy experience | Engine No. 1

the board would benefit from a range of views | Engine No. 1

attacks on our nominees cannot withstand scrutiny | Engine No. 1

attacks on our nominees cannot withstand scrutiny | Engine No. 1

attacks on our nominees cannot withstand scrutiny | Engine No. 1

issue incentives | Engine No. 1

inverse relationship between management compensation and performance for shareholders | Engine No. 1

disconnect results in part from compensation plans that can reward volumes over sustainable value | Engine No. 1

changes have also undercut effectiveness of compensation plans | Engine No. 1

part seizing the opportunity for real change ill | Engine No. 1

requires real change | Engine No. 1

board composition all nominees each add a highly relevant yet unique and complementary set of skills | Engine No. 1

long term strategy focus on profitability today while pragmatically repositioning for the future | Engine No. 1

capital allocation long term commitment to a coherent returns focused strategy | Engine No. 1

incentives better aligning performance goals to drivers of shareholder value | Engine No. 1

gradually repositioning for the future can enhance returns for long term investors | Engine No. 1

benefits of investor engagement have been tangible but preserving gains will require real change | Engine No. 1

now is the time to seize this chance to give board the experience and skills it needs to face the future | Engine No. 1

appendix analyzing long term demand projections | Engine No. 1

world view has resulted in a failure to position itself for success in lower demand scenarios | Engine No. 1

assumptions regarding impact of population growth world and the historical page change in the industry in predicting a | Engine No. 1

position on power generation | Engine No. 1

impact of falling costs for | Engine No. 1

position on electric vehicles revised upwards a era | Engine No. 1

impact of increased efficiency on demand predictions | Engine No. 1

| Engine No. 1

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Engine No. 1

Exxon Mobil

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