#1Imperial Investor Day W March 10, 2022#2Agenda Topic Opening remarks Speaker Time Brad Corson 8:00 Chairman, President and CEO Sherri Evers Environmental/Social/Governance 8:20 VP, Commercial and Corporate Development Upstream outlook Break Downstream & Chemical outlook Financial outlook Jon Wetmore VP, Downstream Simon Younger 8:50 SVP, Upstream 9:30 9:40 Dan Lyons 10:00 CFO Closing remarks Q&A Brad Corson 10:20 Chairman, President and CEO 10:30 Imperial | 2022 2#3Opening remarks Brad Corson Chairman, President and Chief Executive Officer#4Reflections on the past year Strong results and substantial progress on strategic priorities Strong commodity prices, recovering demands > Well-positioned to benefit from recovery coming out of pandemic Outstanding operational performance ▷ Highest Upstream production on record ▷ Strong Downstream utilization and product sales, highest Chemical earnings in over 30 years Outstanding financial performance > ~$5.5B cash flow from operations, ~$4.5B free cash flow¹ > Cost efficiencies in excess of $1B vs. 2019 All-time high shareholder returns > $3B returned via dividend and buybacks Advancing low carbon solutions > Founding member of Oil Sands Pathways to Net Zero alliance ▷ Announced new GHGi reduction goal, intent to progress renewable diesel project at Strathcona refinery 13 FRI 6 SAT 14 Successfully managed health and safety of workforce during ongoing pandemic conditions ▷ Robust COVID protocols enabled uninterrupted operations and product supply ▷ Continued strong personnel and process safety performance 1 Non-GAAP financial measure - see supplemental information for definition and reconciliation 6 Imperial |2022 | 4#5What you will hear today Integrated business model drives shareholder value Delivering ■ Focus on optimizing existing assets ■ Relentless focus on costs and reliability ■ Value accretive opportunistic growth ■ The power of integration ■ Continued focus on Resiliency lowering break-evens Strength of balance sheet, liquidity through the cycle superior shareholder value Maximizing Shareholder Returns Updated GHGi reduction goals Goal of net zero by 2050 for operated oil sands ■ Continued technology and innovation focus ESG focus Investment in technology and innovation Key to delivering on cost commitments Technology solutions for meeting environmental goals Imperial | 2022 | 5#6Macro view Global supply challenges and demand recovery support continued commodity price strength ■ Global oil supply > Underinvestment during past cycle > OPEC+ struggling to meet targets > Public company growth constrained by capital allocation and energy transition priorities > Geopolitics play larger role as spare capacity shrinks ■ Global oil demand ▷ Major demand shock during early days of pandemic > Demand resilience evident as new variants arose ▷ Continued recovery likely, especially for jet fuel Global oil inventories > Global oil and product inventories well below 5-year average Imperial well-positioned to take advantage of market conditions ▷ Maximizing value from existing assets, progressing select GHG-advantaged growth Imperial |2022 | 6#7Fundamentals drive energy demand growth Further investment required in any scenario ■ Economies continue to develop and grow ▷ Increasing populations, desire for improved standard of living ▷ Energy supply evolves to meet demand projections Energy trends vary by sector, geography but demand growing ▷ Commercial transportation, chemicals drive liquids fuel demand Light duty transportation becomes more efficient ■ Global energy mix shifts to lower carbon fuels ▷ Future energy mix has large range of potential outcomes Technology and efficiency lowers energy intensity ■ Further oil and gas investment required in any scenario Imperial 2022 | 7#8Sustainability focus Canada, and Imperial, should be supplier of choice Multiple views of future energy requirements highlight oil and gas as being key part of mix ■ Canada is the most responsible producer in the world > Top ESG ratings amongst world's largest reserve holders > Leadership in sustainable development ▷ Unprecedented industry collaboration Imperial well positioned to be supplier of choice in the energy transition landscape > History of demonstrated resilience Aggressive GHG reduction goals - Underpinned by measurable goals with specific plans - Supported by long-term commitment to R&D > Technology is a strength and key to achieving ambitions Imperial | 2022 8#9ESG Sherri Evers Vice-president, Commercial and Corporate Development#10- Canada Positioned to lead the energy transition Collaborative and innovative policy landscape promotes accelerated energy solutions Progressing policy and incenting emissions reductions Advanced climate policies Net-zero ambition Expertise in carbon management Advanced regulatory systems Unprecedented industry collaboration Imperial |2022 | 10#11Imperial sustainability priorities. Advancing responsible energy solutions for a better tomorrow GHG Climate Develop pathways in support of a net-zero future ■ Mitigate emissions in our operations ■ Help our customers reduce their emissions Indigenous reconciliation Strengthen collaboration and partnerships with Indigenous communities in an effort to generate economic benefits and continue the journey of reconciliation People Cultivate a workplace where everyone feels included, diverse perspectives are valued and our people are empowered today and prepared for tomorrow Land and water Further improve environmental performance by protecting water resources and promoting biodiversity Strategic investment Meaningful investment to drive real ESG impact Imperial | 2022 | 11#12Accelerating our progress on ESG Significant strides made over the last year il д 尖 898 Working to enhance Renewable inclusion and power diversity purchase programs agreement Expanded commercial application of LASER¹ Successful startup of first boiler flue gas unit Oil Sands Pathways to Net Zero alliance January 2021 1 Liquid addition to steam for enhanced recovery 2 Progressive Aboriginal Relations Highest annual Indigenous business spend G Strathcona Accelerated silver-level PAR² certification Co-processing pilot at Sarnia and Nanticoke New goal to reduce emissions intensity at oil sands operations renewable diesel January 2022 Imperial |2022 | 12#13Risk management assessment and mitigation Robust governance and committed leadership Integration of ESG in pursuit of superior shareholder value Management committee leads integrated ESG strategy ■ Climate council established to accelerate emission reduction solutions Inclusion and diversity council working to further enable diverse perspectives ■ External ESG assessment conducted and continuous evaluation through issues and opportunity management process Shareholders and stakeholders input at all levels Risk management oversight Community Imperial Board of Directors Public policy collaboration and engagement Audit Executive resources Nominations and corporate governance and corporate responsibility Management Committee Inclusion and diversity council Business management Climate council Operations Imperial | 2022 | 13#14Indigenous reconciliation journey Striving to create lasting relationships and shared prosperity Progressive Aboriginal RELATIONS SILVER LEVEL Canadian Council for Aboriginal Business ■Committed to creating a safe space for our employees to learn, engage and better understand Executive-led Indigenous recruitment and retention working group Demonstrating commitment through business development Continued focus on expanding reach and partnership with Indigenous businesses ▷ Business development with Indigenous community partners - over $3.3B to date Imperial Suan ACTION NEAR FR Imperial | 2022 | 14#15Our climate strategy Leveraging our expertise, integration and technologies Mitigating emissions in our operations Helping our customers reduce their emissions Finding solutions with partners and policy makers 显示 TCFD guided disclosure with third-party verified GHGs Transformational technology solutions Imperial | 2022 | 15#16Advancing carbon solutions Innovating for a lower-carbon future Short term Medium term Long term A Boiler flue gas > Autonomous haul system LASER A ▸ Supporting renewable power > Carbon capture and storage > Renewable fuels > Advanced fuels and lubricants > Biofuel blending > Co-processing > Renewable fuel production > New product offerings > Sustainable aviation fuel > Oil Sands Pathways to Net Zero > Emission reduction solutions ▸ Carbon capture and storage and hubs > SA-SAGD > Next-generation in situ technologies > Low-carbon intensity hydrogen > Small modular reactors > Low-carbon intensity hydrogen > Low-carbon intensity hydrogen, small modular reactor > Carbonate fuel cell technology > Direct air capture > Bitumen beyond combustion Investing in lower-emissions, value generating solutions Imperial | 2022 | 16#17GHGi reductions in operated oil sands Driving emissions improvements through short, medium and long-term goals Our long term goal is to achieve net-zero emissions in operated oil sands by 2050 through collaboration with governments and other partners Achieved reduction in operated oil sands GHGi by 20% Between 2013 and 2016 2016 GHGi Efficiencies Renewables Low carbon CCS 2030 Goal intensity production Goal to reduce operated oil sands GHGi by 10% by 2023 relative to 2016 levels Goal to reduce operated oil sands GHGi by 30% by 2030 relative to 2016 levels Imperial | 2022 | 17#18Carbon capture and storage Pathways alliance critical enabler for a lower-carbon future Progressing Oil Sands Pathways to Net Zero alliance to support emission reduction "One of few proven technologies to help decarbonize energy-intensive industries Established regulatory framework in Alberta and world class storage capacity ■ Well positioned with extensive subsurface knowledge and reservoir management Assessing project opportunities across our facilities Expanded use can further emissions reductions associated with hydrogen and renewable fuels production Edmonton Fort McMurray Transportation line Cold Lake Joint carbon storage hub Calgary Basal Cambrian reservoir д Oil Sands Pathways to Net Zero Imperial | 2022 | 18#19New energy solutions. Keeping our communities and customers moving Helping our customers reduce their GHG emissions by working together on solutions Demand for lower-emission fuels expected to grow rapidly Producing advanced fuels that improve fuel efficiency and reduce emissions Growing our biofuel blending and distribution capabilities Piloting agricultural feedstocks to produce co-processed commercial fuel Advancing next-generation fuel offers and technologies Canadian market demand growth Indexed versus 2017,% 200 150 100 50 0 2017 2020 Source: ExxonMobil's 2021 Outlook for Energy Biofuels Asphalt Jet Diesel Gasoline Fuel oil 2025 2030 Imperial |2022 | 19#20Energy solution delivers real value to shareholders Growing our business with renewable diesel Helping our customers reduce their GHG emissions > Potential to reduce emissions by 3MT annually ▷ Sourcing hydrogen produced with CCS Building Canada's largest renewable diesel facility Clean Fuel Regulation competitive compliance opportunity Strategic project leverages existing facility for capital efficiency Supporting Canadian farmers using locally sourced biofeedstock ▷ Existing supply chain expertise and infrastructure ▷ Accessible and robust feedstock availability Producing premium fuel ▷ Blue hydrogen and biofeedstock combined with proprietary catalyst to produce high quality, low-carbon diesel Performs well in cold weather Imperial | 2022 | 20#21Continuing our progress Solutions in support of a lower carbon future 2022 (3) Expand deployment of boiler flue gas New product offerings including evaluation of sustainable aviation fuel Anticipated first deployment of SA-SAGD at Grand Rapids Potential initiation of first phase of carbon capture and storage at Cold Lake Evaluating potential to leverage low- carbon blue hydrogen in our operations Non-condensable gas field study Enhanced late- life process pilot start-up expected early 2022 Plans to manufacture renewable diesel at Strathcona refinery Pilot enhanced bitumen recovery technology Initial phase cyclic solvent process commercialization Possible small modular reactor deployment Imperial | 2022 | 21#22Upstream Outlook Simon Younger Senior vice-president, Upstream#23Upstream strategy Best-in-class producer, maximizing cash flow, positioning for a lower carbon future ■ Maximize value from long-life, low-decline assets Targeting industry-leading unit cost and reliability ■ Select, disciplined capital investments Lowering emissions through profitable investments High-impact innovation and digital solutions Operational excellence and responsible development Mahkeses LASER Project Imperial Imperial 2022 23#242021 Upstream performance Demonstrated strong operational performance and sustained improvements 2021 vs. 2019 Production (koebd) 428 +8% Cash cost¹ ($B) 4.7 +5% Unit cost¹ ($/boe) Unit cost¹ ex. energy ($/boe) 30 -3% 24 24 -10% Successfully managed COVID to avoid disruption Maintained priority on safe operations ■ Preserved capital discipline and cost focus ■ Raised production - highest in over 30 years ■ Sustained unit cost improvements Progressed GHG projects GHG intensity2 (t CO₂e/m3) .35 -12% > Mahkeses LASER, Kearl boiler flue gas On track with 10% intensity reduction target by 2023 Production Imperial share, before royalties. Energy cost includes predominantly natural gas, diesel and power. Unit cost ex. energy excludes all 2019 and 2021 energy costs. 1 Non-GAAP financial measure and ratio - see supplemental information for definition and reconciliation 2 Preliminary estimate Greenhouse gas intensity for oil sands operated assets (TIER basis, metric tonnes CO2 equivalent per cubic meter of production) Imperial | 2022 | 24#25Long-life, low-decline asset base High-quality stable production base; focused on GHG-advantaged growth Production koebd 500 400 300 200 100 0 2017 2019 2021 Kearl Cold Lake Production Imperial share, before royalties 2P reserves Imperial share, before royalties, YE 2021 NI51-101 Syncrude Other 2023 2025 ■ ~4.3 billion boe of proved and probable reserves Multi-decade production profile ▷ Low sustaining capital ■ 425-440 koebd production outlook for 2022 ■ 20% low cost volumes growth 2017-2026 Priority on GHG-advantaged investments Imperial | 2022 | 25#26Upstream cash flow outlook. Delivering value and strengthening cash flow from operating activities Average annual cash from operating activities at $US 60 WTI $B 4 2 ■ Cash flow outlook strengthened vs prior outlook by 15% (ex. market factors) ▷ Progressing cost improvements - 9% reduction > Increased production outlook - 3% increase Pipeline of highly accretive investments Improved resiliency to low prices. > Focused on lowering unit cash costs Strategy delivering results 0 Prior Outlook (21-25 avg) Volume Growth Operating Efficiencies Market Factors Current Outlook (22-26 avg) Prior outlook refers to 2020 Investor Day, $US 60 WTI scenario, $US 15 WCS differential, $US 0.75 exchange rate. Current outlook is based on $US 60 WTI, $US 12 WCS differential, $US 0.8 exchange rate. Imperial | 2022 | 26#27Upstream investment outlook Investing for value through select volume growth and GHG intensity reduction Average annual capital expenditures¹ $B 1 0 2021 2022 2023 2024 2025 2026 ■GHG / Growth Prior outlook Capital plan reduced from prior outlook Sustaining capital moderates from 2022 ▷ 5-year average of ~$5 per barrel Key sustaining projects include: > Kearl in-pit tailings > Autonomous Haul System ▷ Syncrude Mildred Lake Expansion > Cold Lake infill drilling ■ GHG-advantaged volumes and value growth: > Cold Lake Grand Rapids Phase 1 (GRP1) > Cold Lake Leming field redevelopment > Kearl boiler flue gas ▷ Kearl secondary recovery projects Sustaining 1 See supplemental information for definition Imperial | 2022 27#28Industry-leading digital approach Accelerating value with a rapidly growing digital portfolio Digital investment principles Capital-efficient ▪ Fast payback Agile development Near-term focus and wins ■>30 successful initiatives Optimizing production ■Improving reliability ■ Reducing costs Advanced analytics ■Maximize recovery and production ■ Data-driven decision making ■ Enhance worker safety and productivity Realized >$400M/yr value Established digital vision 2017 2020 2023 Note: Value represents annual benefit of cost savings and production uplift in $M CAD, before taxes and royalties. Forward looking estimates at $US 60 WTI price case. Kearl 100% basis. >$1B/yr Future potential $750M/yr 2020 Investor Day Defined projects 2026 Imperial | 2022 | 28#29Advanced analytics and work process optimization Converting data to dollars 1 Fines % Enhanced mine planning (10 15 kbd) Kearl Recovery Heat Map Grade % Leveraging data and advanced analytics to enhance mine planning and deliver incremental production Annual maintenance plan optimization (>$50M/yr) Well downtime tracker (~1 kbd) Integrating field work processes to minimize well downtime and leverage data insights Maintenance execution effectiveness ($15M/yr savings) Surveillance and failure analysis (>$40M/yr) Leveraging analytics in operations Cold Lake water balance (1+ kbd) O ° hele WYY WY LT 41.1M 323.6M 298.48M Digitization of annual maintenance planning enables 204.BOM 6.78M enhanced work prioritization and elimination Real time management and feedback on maintenance execution Progressing mathematical optimization of water flows to maximize production Imperial | 2022 | 29#30Kearl 2021 performance Demonstrated strength of Kearl asset Production kbd 250 200 2020 Unit cash costs¹ $US/bbl 30 20 Supplemental Turnaround Crushers Interval Grade & Recovery 20.56 -0.70 2021 ■ Record production in 2021 > Exceeded prior record by 40 kbd > Realized full benefit of supplemental crushers (+24 kbd) > Achieved turnaround interval extension (+7 kbd) Set new records in 9 of 12 months > Best ever month of 311 kbd set in June > Production profile optimized for seasonality ■ Unit cost¹ reduced 21% vs. 2019 ($US 28/bbl) > Step change achieved in 2020 > Further $US 0.70/bbl reduction in 2021 > $US 19.86/bbl unit cash cost¹ ex. forex and energy increase 22.42 2.56 10 FOREX 2020 0.75 Production 100% interest, before royalties Optimization Forex & Energy 2021 0.80 Energy cost includes predominantly natural gas, diesel, and power. 1 Non-GAAP financial ratio - see supplemental information for definition and reconciliation Imperial | 2022 | 30#310 100 2015-2017 200 kbd 300 Kearl journey Stable, reliable operations enabling acceleration of optimization phase 2018-2020 2021 2022 2023 Production Unit Cash Cost 2024 Production 100% interest, before royalties 1 Non-GAAP financial ratio - see supplemental information for definition and reconciliation 2025 - 2026 $US/bbl 40 20 20 0 Targeting 280 kbd in 2024, earlier than prior outlook ▷ Accelerated turnaround strategy ▷ Debottlenecking, reliability, and maintenance improvements > Enhanced mine planning and improved recovery ▷ Digital initiatives Continuing to drive down unit cash cost¹ <$20 USD/bbl > Focus on structural cost reductions > Efficient volumes growth ▷ Digital and technology targeted at cost improvement Evaluating future production potential 280-300 kbd ▷ Enhanced recovery, plant debottlenecks, mine fleet expansion Imperial | 2022 | 31#32Technology in support of Kearl volume growth Reliability and secondary recovery initiatives Advanced wear materials Coarse tailings bitumen recovery Flotation tailings bitumen recovery Hydrotransport Primary Separation Cell (PSC) Flotation Tailings Column Cells To Fines Treatment ■4 kbd production uplift Improved service life, reduced maintenance Integral part of reliability improvement ■8 kbd production benefit ■Lowers GHG intensity (-2%) ■ Successful field pilot Coarse Sands Tailings Column Cells ■ 3 kbd production uplift To Tailings ■Lowers GHG intensity (-1%) ■ Additional use of column cells technology Imperial | 2022 | 32#33Autonomous haul update Fleet conversion improving profitability and safety ■ On track to convert 55 trucks (~70%) by end of Q3 ■ Record AHS movement in 2021 > Tripled vs. 2020, >30% total material ■ Unit cash cost savings ~$US 1/bbl ■ Autonomous platform enabling optimization across broader mine mobile fleet ■ On track to be first fully autonomous oil sands. mining operator by 2023 210 CAT 797F 1 Non-GAAP financial ratio - see supplemental information for definition and reconciliation 2130 Imperial | 2022 | 33#34Kearl boiler flue gas emissions reduction technology Successful first deployment, expanding to five additional boilers ■ Innovative technology recovers waste heat from the boiler's exhaust to pre-heat process water ■ Successful startup of first unit May 2021 with additional five units by end of 2023 ■ Robust economics with significant GHG benefit Reduce up to 220,000 tonnes per year of carbon dioxide equivalent ~$40M/yr full program cost savings ■ Collaboration with Alberta government Boiler Feed Water Steam Cold Warm Process Process Water Water H-IC Condenser/ Exchanger Secondary Stack Condensed Water for use in process Imperial |2022 34#35Cold Lake 2021 performance Performance exceeding expectations and sustainable into the future Production performance kbd 150 100 kbd 150 132 140 ■ Increased production 8 kbd vs. 2020 > Water balance strategy and equipment reliability (~5 kbd) > Infill drilling and optimization (~3 kbd) ▸ Strongest reliability in past 5 years Executing on 2021 asset strategy with strong results > Started up Mahkeses LASER solvent 1Q21 > Progressed innovative "Niche" drilling program > Startup of infills at Mahihkan field Initiated construction of butane blending facility > Optimized diluent usage saving ~$20M of margin erosion Continued robust cash generation through cycles, underpinned by operating performance and selective investments 2020 Reliability Optimization Infill Drilling 2021 100 2018-2020 2021-2023 2024-2026 Imperial | 2022 | 35#36Cold Lake strategy Maximize asset value and cash flow through transformational GHG strategy Transition to lower emission technology kbd 200 100 Base Base infills Lower emissions production 2024 2027 2030 0 2021 Reduction in GHG intensity t CO₂e/m3 Strategy to sustain volumes through resilient investments, delivering competitive returns and GHG transformation > ~1.7 billion boe produced, 1.1 billion boe 2P reserves remaining Accelerating solvent technologies, while increasing profitability and reducing reliance on steam > ~24% reduction in GHG intensity vs. prior plan Technology progression LASER Start up Mahihkan 2017, Mahkeses 2021 0.5 SA-SAGD, SAGD GRP1 2024, Leming redevelopment 2025 NCG ~ 2026+ CSP ELP ~ 2028+ Evaluating 0.0 2021-2025 2026 - 2030 LASER: Liquid Addition to Steam for Enhanced Recovery, SA-SAGD: Solvent Assisted Steam Assisted Gravity Drainage, NCG: Non Condensable Gas Injection, CSP: Cyclic Solvent Process, ELP: Enhanced Late-Life Process ■Current Outlook Prior Plan 2P reserves Imperial share, before royalties, YE 2021 NI51-101 Imperial |2022 | 36#37Key Cold Lake volume sustainment investments Progressing capital-efficient projects to sustain strong production performance Niche rig drilling program Leming field redevelopment ■ Successful first deployment, >20 redrills and sidetracks to date Leverages existing infrastructure, >5 kbd by ~2024 Capital-efficient, flexible program ▷ As low as $10k/flowing bbl/d capital intensity SAGD technology to redevelop low-recovery, high-quality reservoir ■9 kbd at peak, 35% GHGi reduction vs. Cyclic Steam Stimulation ■ Efficient and resilient investment $20k/flowing bbl/d capital intensity Imperial | 2022 | 37#38Strategy underpinned by advanced in situ technologies Research and development supporting long term profitable GHG reduction Enhanced Late-Life Process, ELP CSS well Non-Condensable Gas, NCG Injector Producer Cyclic Solvent Process, CSP CSS well Infill well Solvent NCG + steam Mobilized bitumen is pumped to surface ■ Non-thermal late life process Reduce water use and GHGi by ~25% Reallocate or shut-in steam Reduce GHGi by ~70%, no water required Pilot startup 2022 Field study startup 2022 Non-thermal cyclic process Reduces GHGi by 90%, no water required Pursuing commercial scale deployment Note: CSP GHGI reduction relative to CSS, NCG and ELP reduction relative to steamflood Imperial |2022 | 38#39Cold Lake carbon capture and storage (CCS) opportunity Efficient emissions reduction, supporting Cold Lake strategy transformation Pursuing CCS emissions reduction opportunity that captures efficiencies with Cold Lake operations Evaluating capture of CO2 from combination of produced gas and flue gas streams ■ Nearby injection into Basal Cambrian Targeting startup in mid to late 2020's ■ Potential to be one of the first CCS projects within Pathways initiative Mahihkan Plant at Cold Lake Production Steam and diluent CO₂ CO₂ CO₂ Glacial Till Colorado Shales Grand Rapids Clearwater Separations L Produced gas Recycled water Heated oil and water are pumped to the surface McMurray Devonian Cambrian Produced bitumen Pipeline to market Capture CO₂ and permanently store in Basal Cambrian Imperial |2022 | 39#40Syncrude strategy Capturing value of transition to owner-operator model Production kbd 90 60 30 ■ Successful partner engagement and collaboration delivered transformational step in asset strategy ▸ Transitioned from Syncrude to Suncor as operator 2021 Synergies of $300M gross through regional efficiencies > Integrated projects, maintenance and support organizations ▷ Target savings of $200M in first 12 months. ■ Increasing volumes through reliability improvements, increased utilization and turnaround execution Targeting <$US 30/bbl unit cash costs¹ 0 2016-2019 2020 2021 2022-2026 > Driven by increased production and cost efficiencies Production Imperial share, before royalties 1 Non-GAAP financial ratio - see supplemental information for definition and reconciliation Imperial | 2022 | 40#41Future resource optionality Portfolio of growth opportunities with net-zero potential In situ GHG intensity t CO₂e/m3 0.5 Aspen Clarke Creek Fort McMurray Montney Corner ● Duvernay • Clyden 0 Industry SAGD SA-SAGD EBRT EBRT + CCS Successful lab-scale EBRT research Large inventory of in situ opportunities ▷ Aspen, Corner, Clarke Creek, Clyden Strategic approach to future development ▷ Maintain optionality while evaluating next generation in situ technologies Edmonton Calgary ■ Advancing Enhanced Bitumen Recovery Technology (EBRT) ▷ Significantly lower GHG intensity ▷ Potential for large-scale application at Aspen; improved value capture > Potential to pair with CCS for net-zero incremental production ■ Unconventional assets being marketed > Testing opportunity to capture enhanced value ▷ Aligns with strategy to focus on core oil sands assets Imperial | 2022 | 41#42Upstream summary Best-in-class producer, maximizing value, positioning for a lower carbon future Maximizing value from existing assets Sustaining efficiencies; targeting industry leading unit cost and reliability Investing for value through select volume growth and GHG intensity reduction Industry leading digital portfolio; achieved >$400M value in 2021 ■ Acceleration of Kearl volumes to 280 kbd Large portfolio of in situ opportunities with net-zero potential Imperial |2022 | 42#43Break Imperial | 2022 | 43#44Downstream and Chemical Outlook Jon Wetmore Vice-president, Downstream#45Downstream and Chemical strategy Increasing profitability across the value chain ■ Deliver industry leading performance in safety, reliability, and operations integrity Strategically invest in logistics to expand market reach, reduce costs and improve supply reliability ■ Enhance world-class Esso and Mobil brands and product offering ■ Develop a compelling lower-carbon offer, become a valued sustainability partner ■Lower emissions through profitable investments Increase refinery crude and feedstock flexibility in support of energy transition ■ Maximize the benefits of integration and molecule uplift ELECTRIC TRACED Imperial 2022 | 45#46Canadian margin environment Structurally advantaged margins, resilient through the pandemic Average monthly gasoline crack $US/bbl 80 Avg. Canadian gasoline crack Avg. US gasoline crack Average monthly diesel crack $US/bbl 80 Avg. Canadian diesel crack Avg. US diesel crack 40 40 40 40 Imperial | 2022 | 46 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 50/50 NYH/Chicago and 50/50 Toronto/Edmonton rack vs. MSW feedstock cost; Assumes $5/bbl crude tariff to Chicago, NYH & Toronto#47Canadian fuel demand update Demand continuing to recover Canadian industry demand (~% of normal*) ||| 90-95% Q4 2021 90-95% Q4 2021 65-70% 70-75% Q4 2021 20-25% 80-85% Q2 2020 Q2 2020 Q2 2020 ■ Canadian economic activity increasing ■ Omicron impacting near-term, potential for continued volatility Gasoline, diesel demand expected to recover to pre-COVID levels ■ Jet demand continues to lag with on-going global restrictions Competitive gains partly offsetting demand impacts *Domestic sales relative to pre-pandemic levels Imperial | 2022 47#48Canadian refining Canada's largest refiner with access to global technology and expertise Structurally advantaged refining business > Largest domestic refiner, strategically located assets > Fully integrated Chemical plant for optimized molecule uplift > Low overall cost structure > Access to ExxonMobil technical expertise ■ Focused on enhancing margins, flexibility and efficiency > Maximizing heavy crude processing capability > Investments in energy efficiency, renewable fuels > Minimal-cost production capacity creep ▷ Upstream diluent supply connectivity kbd 400 300 Refinery throughput and utilization 100% 50% 200 0% Throughput and utilization increasing with demand recovery 2019 2020 2021 2022 Guidance Midpoint Throughput Utilization Imperial | 2022 | 48#49Fuel, lubricant and asphalt marketing Industry leading brands and product offering creates customer pull Retail branded wholesale model provides structural advantages Industry leading site count with ~2,400 sites across Canada ▷ Capital efficient growth ▷ Strategic partnerships with best-in-class retailers ■ Portfolio of industry leading market share and global brands. > #1 Canadian retail market share1 > Mobil 1 is the world's leading synthetic motor oil brand ▷ Largest Canadian asphalt producer Elevating brand value with an enhanced offer > Differentiated, high-value products ▷ Expanded partnership with PC Optimum loyalty program ▷ Developing a compelling lower-carbon product offering > Official fuel and motor oil of the NHL 1 Combined Esso and Mobil brands, based on Kalibrate survey data for year-end 2021 Esso TM Mobil™ Synergy Imperial | 2022 | 49#50Developing a lower-carbon product offering Broad portfolio of products helping customers meet their sustainability goals ■ 75% of existing gasoline and diesel sales contain renewable content > Continuing to grow blending and distribution capability Growing portfolio of advanced fuels that improve efficiency and reduce emissions ▷ Synergy Supreme premium gasoline ▷ Esso Diesel Efficient > Esso Bio-protect > Renewable diesel ■ Advanced lubricants specifically designed to improve transportation and industrial efficiency ■ Associate member of newly formed Canadian Council for Sustainable Aviation Fuels Mobil Advanced Fuel Economy NASCAR Mobil Advanced Fuel Economy NASCAR Advanced Full Synthetic 12 ESSO FUEL TECHNOLOGY Synergy Synergy H Supreme Synergy Supreme 3X CLEANER more KM per tank C-SAF Canadian Council for Sustainable Aviation Fuels Conseil canadien des carburants d'aviation durables Imperial | 2022 | 50#51Innovation delivers shareholder value Further enhancing Imperial's Downstream offer with innovative solutions and technologies Advanced recycling Vegetable oil co-processing Collaborative product trials Battery energy storage 7044 7044 CP ENERGY STORAGE ▷ Transforming plastic waste into valuable products at scale > Evaluating potential opportunity at Sarnia site > Leveraging ExxonMobil technology and expertise ▷ Vegetable oil co-processed with conventional feedstocks ▷ Reduced carbon-intensity compared to conventional fuels ▷ Successful trials completed at Sarnia and Nanticoke > Identifying products to help customers meet business and sustainability goals ▷ 19-day product trial in collaboration with CP Rail and ExxonMobil research > Esso Diesel Efficient adopted across CP locomotive fleet, reducing emissions > Designed to charge during off-peak hours and discharge during peak ▷ Captures annual energy cost savings > Enel X building 20 MW system at Sarnia site, largest in North America Imperial | 2022 51#52Downstream investments Strategic investments in low-capital, high-return business Annual capital expenditure¹ forecast $M 600 300 2021 2022 2023 2024 2025 2026 ■Growth/GHG Prior outlook Sustaining Key project spend forecast $M 300 150 0 2022 2023 2024 SPPL ■Strathcona RD 1 See supplemental information for definition ■ Selective investing in refinery slate, production efficiency and resiliency Support and enhance strategic logistics ▷ Market opportunities, access, reliability > Efficiency capture reducing cost to supply Regulatory compliance and opportunities ▷ Biofuel manufacturing and distribution infrastructure > Energy efficiency and emissions reductions Imperial | 2022 | 52#53Sarnia products pipeline (SPPL) update Proactive investment in efficient and reliable logistics Project details: > ~$470M final investment, ~$400M spent through year-end 2021 > 63 km pipeline, restores capacity into key Toronto market > On track to be in service 2Q22 ■ SPPL creates structural value: ▷ Access to high-value, structural short Toronto area ▷ Step-change reduction in cost to supply, $40M annual savings > Ensures product supply reliability Mississauga Finch Terminal Milton Oakville CAT C Waterdown Pump Station ப Hamilton Burlington Toronto#54Strathcona renewable diesel project update Building Canada's largest renewable diesel (RD) facility Imperial building Canada's largest renewable diesel facility Combining agriculture and technology to lower emissions to support Canada's ambition to net zero Imperial Hydrogen and renewable feedstock, refined with proprietary catalyst, produces high-quality renewable diesel ■ Grassroots facility Canadian-grown crops supply feedstock ✶ More than 1 billion litres of Canadian climate ready diesel produced every year to fuel vehicles, trains and industry CO ~ 3 million tonnes/year of 2 reduced CO2 emissions Sourced hydrogen produced with carbon capture and storage technology → planting 3.7 million acres of forests in one year - half the size of Vancouver Island > ~$500M capital investment, globally competitive scale ▷ Total investment, including 3P capital investments, exceeds $1B >20 kbd of premium RD from locally grown feedstocks and low-carbon H₂ > Integrated with Strathcona refinery ~3 MT/yr CO2 reduction compared to conventional fuels ■ BC provincial support under low-carbon fuel legislation ■ Final investment decision anticipated in 2022, start-up 2024 Imperial | 2022 | 54#55Strathcona renewable diesel value proposition Capturing competitive value for shareholders CO2 capture and storage Blue hydrogen productions Renewable diesel ewable Renewable diesel Renewable diesel Crush plant 000 Feedstock Renewable diesel refining US imports ■ Canadian Clean Fuel Regulations supporting low-carbon investments > RD is an efficient pathway for hard to decarbonize sectors ▷ Canadian RD currently supplied by costly long-haul imports > Grassroots assets and co-processing both options for renewable fuels ■ Strathcona RD is cost-advantaged compared to import alternatives ▷ Strategically located reducing supply chain costs; advantaged crop sources ▷ Cost-efficient scale and integration with Strathcona refinery > Drop-in fuel using existing blending and distribution network > Specifically formulated for Canadian climates Imperial | 2022 | 55#56Downstream profitability Resilient business model, focused on increasing profitability Cash operating costs1 and refinery throughput $B 3 kbd 400 Resilient, reliable performance across the cycle 2 1 300 200 0 2019 2020 2021 Cash opex -Throughput Annual net income $B 1 0 2019 2020 2H21 1H21 2021 1 Non-GAAP financial measure - see supplemental information for definition and reconciliation Fully integrated, flexible business model ■ Further structural cost reductions achieved in 2021 Focusing on profitable volume and margin growth to capture upside > Strategic investments in efficient logistics > Volume growth in high-value markets > Refinery flexibility, margin and efficiency enhancements > Developing a compelling lower-carbon product offering Imperial | 2022 | 56#57Chemical site integration advantage Advantaged location and integration, positioned to compete in a high-growth market Feedstock Annual net income % 100 $M 450 Other HDPE injection molding price history US $/lb 120 Marcellus 300 ethane 50 150 00 90 60 60 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 2022 2016-2020 Source: Platts HDPE injection, US domestic, delivered railcar (AALBN00) off gas 0 0 30 2019-21 2019 2020 2021 Refinery Imperial | 2022 57 Robust, long-term demand growth for key chemical products Integration provides leading cost structure, profitability advantage during challenging market conditions#58Imperial Chemical produces high-value products Meeting customer demands with consistent, high-quality, differentiated products Product trials $M NPV 50 25 0 .. 2018 2019 2020 2021 2022 PL Customer-focused product development ▷ Developing unique PE grades to address customer-specific needs, capturing new sales opportunities High-density polyethylene (HDPE) for rotational and injection molding applications ■ End product uses are mostly durables, not single-use plastics Superior customer service ▷ Consistent resin quality, reliable supply ▷ Highly regarded technical service ▷ Specialty products Imperial | 2022 | 58#59Imperial's Downstream and Chemical advantage Sustainably advantaged assets, brands and products Canadian domestic fuel markets benefit from advantaged margins ■ Strategically located, highly-integrated assets with low sustaining capital requirements ■ Portfolio of superior brands and products fostering long-term customer relationships Coast-to-coast logistics network providing reliable, cost-effective market access Expanding lower-carbon product offering in support of customer sustainability goals ■ Resilient and reliable performance across the cycle, sustained structural cost reductions ■ Access to global brands, expertise and research through relationship with ExxonMobil 20 ASHCROFT 16 Imperial | 2022 | 59#60Financial Outlook Dan Lyons Chief Financial Officer#61Advantaged financial profile Resilient business model with upside leverage 10-year cash flow from operating activities Downstream, Chemical & Upstream Corporate 2021 debt-to-capital ratio¹ 50% 25% Integrated, balanced business model ▷ Growing production, long-life low decline assets ▷ Advantaged downstream, leading fuels marketer Integrated chemical business > ExxonMobil relationship / scale / expertise ■ Low corporate breakeven > Low cost volume growth ▷ Structural cost reductions Built for the full cycle > Strong balance sheet, industry leading leverage > Unhedged production, flexible refining ▷ Reliable shareholder returns 0% IMO CNQ SU CVE 1 See supplemental information for definition Imperial | 2022 | 61#62Record-setting performance in 2021 Delivered continued cash flow growth Annual cash flow from operating activities $B 6 4 2 0 all. 2016 2017 2018 2019 2020 2021 Strong integrated performance across all business lines ▷ Record cash flow from operating activities > Record Upstream production > Record Chemical earnings ▷ Continued Downstream recovery Highest-ever shareholder distributions of nearly $3B > Largest dividend increase in company history ▷ Accelerated share repurchases under NCIB Imperial | 2022 | 62#638 Cash operating costs Significant cost efficiencies achieved and maintained Annual cash operating costs¹ $B 6 4 2019 Efficiencies Volume growth Energy price 2021 1 Non-GAAP financial measure - see supplemental information for definition and reconciliation ■ Sustainable cost reductions across all business lines > Over $1B in cost efficiencies Progressing additional cost reduction opportunities ▷ Continued focus on energy efficiency ■ Cost-effective volume growth Lower corporate break-even² outlook > $US 25/bbl WTI cash break-even > $US 35/bbl WTI covers dividend and sustaining capital³ 2 Estimated average WTI crude oil price in US dollars required for cash flow from operating activities to equal total operating costs over 5 year period 2022-2026. Based on March 2022 Investor Day business environment ($US 40 WTI, $US 10 WCS differential, Downstream and Chemical margins normalized over time, $US 0.8 exchange rate) 3 Sustaining capital represents anticipated spending to maintain productive capacity of existing assets Imperial | 2022 | 63#64Capital expenditure forecast Low sustaining capital requirement with select growth opportunities Annual capital expenditure¹ forecast $B 2 0 2021 2022 2023 2024 2025 2026 ■Sustaining ■Growth/GHG ◆Prior outlook 1 See supplemental information for definition 2 Sustaining capital represents anticipated spending to maintain productive capacity of existing assets ■ 2022 target of $1.4B, down $0.2B from previous plan Sustaining capital² averages ~$1B over period ▷ Predominantly Upstream > Kearl in-pit tailings drives higher spend in 2022 ▷ Upstream sustaining capital averages ~$5/bbl High return Growth/GHG capital averages ~$0.4B ▷ Kearl debottlenecking and boiler flue gas > Cold Lake Grand Rapids and other solvent technologies > Strathcona renewable diesel Imperial |2022 | 64#65$ Re-affirming capital allocation priorities Remain committed to returning surplus cash to shareholders Dividend per share (paid basis) 1.50 0.75 0.00 2016 2017 2018 2019 2020 2021 2022 Common shares outstanding Millions of shares 900 750 600 2016 2017 2018 2019 2020 2021 ■ Reliable and growing dividend ▷ Dividend increased by 55% since beginning of 2021 ■Low sustaining capital requirements ■ Select, high-return capital-efficient investments in core assets ■ Returning surplus cash to shareholders. ▸ Fully utilize annual NCIB ▷ Supplemental returns, including potential SIB Highly attractive growth opportunities Imperial | 2022 | 65#66Record cash returned to shareholders in 2021 Robust free cash flow outlook Annual cash distributions $B 6 4 2 >100% Increase 0 2016-20 Avg 2021 Dividend ■Buyback Free cash flow profile 1,2 $B 6 4 2 0 $50 $60 $70 $80 $US WTI ◆ Prior outlook 1 Non-GAAP financial measure - see supplemental information for definition and reconciliation 22022-2026 period average, WCS differential varies with WTI price case ($US 10/$US 50, $US 12/$US 60, $US 15/$US 70 and $US 80 respectively), $US 0.80 exchange rate, Downstream and Chemical margins normalized over time Imperial | 2022 | 66#67Corporate guidance summary 2022 Annual Guidance¹ Total Capex $B 1.4 Upstream Production kboed 425-440 Kearl kbd (gross) 265-270 Cold Lake kbd 135-140 Syncrude kbd 75-80 2022 Turnaround Schedule Upstream (full-year opex and production impacts, before royalties) 1Q/2Q: Syncrude Hydrotreater, 3 kbd, $14M opex 2Q: Kearl K1 plant, 10 kbd, $70M opex (IOL share) 2Q: Cold Lake Leming, 1 kbd, $12M opex 3Q: Syncrude Coker, 7 kbd, $65M opex Refinery throughput kbd 395-405 Refinery utilization % 92-94 Downstream (full-year opex and throughput impacts) 1Q/2Q: Sarnia crude unit, 4 kbd, $2M opex 1 Production is Imperial share, before royalties except Kearl which is 100% gross basis Imperial | 2022 | 67#68Closing remarks Brad Corson Chairman, President and Chief Executive Officer#69The Imperial advantage Growing shareholder value High quality, long life assets Industry leading balance Maximizing shareholder value Resilience through cycle Shareholder returns sheet Technology leadership e imperial DANGER Synergy Synergy Synergy Synergy Synergy ESSO Synergy E205#70Our winning strategy Discipline and focus Share price performance $/share 70 60 50 40 30 20 10 0 Jan'20 Jul'20 Jan'21 Jul'21 Jan'22 Disciplined focus on existing assets ▷ Efficiency, reliability, capital efficient investment > Industry leading cost structure > Driving value in mature, competitive downstream business Progress towards ESG targets in evolving environment > Value generating investment on path to net-zero ▷ Scope 3 - working to help customers reduce their emissions ■ Shareholder returns ▷ Sustainable and growing dividend > Share repurchases Capital discipline > Selective high-return growth ▷ Support robust free cash flow Resilience through the cycle ▷ Capturing value through integration > Adapting to market dynamics Imperial |2022 | 70#71Q & A#72For more information: Dave Hughes Vice President, Investor Relations +1 587.476.4743 [email protected] imperialoil.ca in You Tube f twitter.com/Imperial Oil linkedin.com/company/Imperial Oil youtube.com/Imperial Oil facebook.com/ImperialOilLimited#73Cautionary statement Statements of future events or conditions in this report, including projections, targets, expectations, estimates, and business plans are forward-looking statements. Forward-looking statements can be identified by words such as believe, anticipate, intend, propose, plan, goal, seek, project, target, estimate, expect, strategy, outlook, schedule, future, continue, likely, may, should, will and similar references to future periods. Forward-looking statements in this report include, but are not limited to, references to being well positioned to benefit from recovery coming out of pandemic, take advantage of market conditions and be supplier for choice in energy transition landscape; a differentiated business model driving shareholder value; the long-term business outlook including demand, supply and energy mix and pathways related to greenhouse gas emissions; sustainability priorities, including is Scope 1 and 2 net zero goal by 2050 and greenhouse gas emissions intensity goals for 2023 and 2030 for its oil sands operations; the impact of ESG governance and engagement; the company's climate strategy and impact of investments and energy solutions for a lower-carbon future; the impact of the Pathways alliance; plans to construct a renewable diesel facility at Strathcona, including timing of a final investment decision and impact of renewable diesel; Upstream strategy of maximizing cash flow, positioning for lower carbon future and being a best-in-class producer; Upstream and asset specific production outlooks for 2022, and anticipated growth to 2026; cash flow from operating activities outlook and ability to strengthen cash generation; projected capital expenditures from 2022-2026; the value and impact of digital technology and innovation activities; Kearl future unit cash cost targets, production outlook of 280kbd in 2024 and evaluating future potential; autonomous haul conversion target and projected unit costs savings; boiler flue gas technology; the Cold Lake long term strategy, GHG intensity reductions, production outlook to 2030 and the timing and impact of select capital investments including CCS; Syncrude efficiencies from operator transition, increased volumes and unit cost forecast; future growth opportunities with net-zero potential; Downstream strategy to increase profitability across the value chain; industry fuel demand; strategic advantages in the Canadian downstream market and the impact of industry leading brands; the development of lower-carbon product offerings; downstream capital expenditure outlook to 2026; Sarnia products pipeline in service target and impact; Chemical integration advantage and demand growth for key products; resilient business model with upside leverage; corporate WTI breakeven outlook and progression of cost reduction opportunities; total annual capital expenditure outlook; capital allocation priorities and commitment to return surplus cash to shareholders; free cash flow scenarios at various prices; corporate guidance summary; and the company's winning strategy. Forward-looking statements are based on the company's current expectations, estimates, projections and assumptions at the time the statements are made. Actual future financial and operating results, including expectations and assumptions concerning future energy demand, supply and mix; commodity prices, foreign exchange rates and general market conditions; production rates, growth and mix across various assets; project plans, timing, costs, technical evaluations and capacities, and the company's ability to effectively execute on these plans and operate its assets; production life, resource recoveries and reservoir performance; the adoption and impact of new facilities or technologies on capital efficiency, production and reductions to greenhouse gas emissions intensity, including but not limited to next generation technologies using solvents to replace energy intensive steam at Cold Lake, boiler flue gas technology at Kearl, Strathcona's renewable diesel complex and support for and advancement of carbon capture and storage, and any changes in the scope, terms, or costs of such projects; that any required support from policymakers and other stakeholders for various new technologies such as carbon capture and storage will be provided; the amount and timing of emissions reductions; plans to mitigate climate risk and the resilience of company strategy to a range of pathways for society's energy transition; applicable laws and government policies, including taxation, restrictions in response to COVID-19 and with respect to climate change and greenhouse gas emissions reductions; that regulatory approvals will be provided in a timely manner; performance of third-party service providers; refinery utilization and product sales; cash generation, financing sources and capital structure, such as dividends and shareholder returns, including the timing and amounts of share repurchases; capital and environmental expenditures; evolution of COVID-19 and its impacts on Imperial's ability to operate its assets; and the company's ability to effectively execute on its business continuity plans and pandemic response activities could differ materially depending on a number of factors. These factors include global, regional or local changes in supply and demand for oil, natural gas, petroleum and petrochemical products, feedstocks and other market or economic conditions and resulting demand, price, differential and margin impacts; political or regulatory events, including changes in law or government policy, applicable royalty rates, tax laws, and actions in response to COVID-19; environmental regulation, including climate change and greenhouse gas regulation and changes to such regulation; failure or delay of supportive policy and market development for emerging lower emission energy technologies; the receipt, in a timely manner, of regulatory and third- party approvals; environmental risks inherent in oil and gas activities; third-party opposition to company and service provider operations, projects and infrastructure; availability and allocation of capital; availability and performance of third-party service providers; unanticipated technical or operational difficulties; transportation for accessing markets; management effectiveness and disaster response preparedness, including business continuity plans in response to COVID-19; commercial negotiations; project management and schedules and timely completion of projects; unexpected technological developments; the results of research programs and new technologies, including with respect to greenhouse gas emissions, and the ability to bring new technologies to commercial scale on a cost-competitive basis; reservoir analysis and performance; operational hazards and risks; cybersecurity incidents; currency exchange rates; the pace of regional and global economic recovery from the COVID-19 pandemic and the occurrence and severity of future outbreaks and variants; general economic conditions, including the occurrence and duration of economic recessions; and other factors discussed in Item 1A risk factors and Item 7 management's discussion and analysis of the company's most recent annual report on Form 10-K. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to Imperial. 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. Imperial | 2022 | 73#74Cautionary statement 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. 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. All reserves and contingent resources estimates provided in these materials are effective as of December 31, 2021, and based on definitions contained in the Canadian Oil and Gas Evaluation Handbook (COGEH) 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, 2021. Except as otherwise disclosed herein, reserves and contingent resource information are an estimate of the company's working interest before royalties at year-end 2021, as determined by Imperial's internal qualified reserves evaluator. Reserves are the estimated remaining quantities of commercially recoverable oil, natural gas, and related substances anticipated to be recoverable from known accumulations, as of a given date, based on the 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 that 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. Imperial | 2022 | 74#75Supplemental Information. Debt-to-capital ratio Debt, defined as the sum of "Notes and loans payable" and "Long-term debt", divided by capital, defined as the sum of debt and "Total shareholders' equity". Capital and exploration expenditures Capital and exploration expenditures (or capital expenditures) represent the combined total of additions at cost to property, plant and equipment, additions to finance leases, additional investments and acquisitions; exploration expenses on a before-tax basis from the Consolidated statement of income; and the company's share of similar costs for equity companies. Capital and exploration expenditures exclude the purchase of carbon emission credits.. Listed below are definitions of several of Imperial's key business and financial performance measures. The definitions are provided to facilitate understanding of the terms and how they are calculated. These measures are not prescribed by U.S. Generally Accepted Accounting Principles (GAAP). These measures constitute "non-GAAP financial measures" under Securities and Exchange Commission Regulation G, and "specified financial measures" under National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure of the Canadian Securities Administrators. Reconciliation of these financial measures to the most comparable GAAP financial measure, and other information required by these regulations have been provided. Non-GAAP financial measures and specified financial measures are not standardized financial measures under GAAP and do not have a standardized definition. As such, these measures may not be directly comparable to measures presented by other companies and should not be considered a substitute for GAAP financial measures. Free cash flow Free cash flow is a non-GAAP financial measure that is cash flows from operating activities less additions to property, plant and equipment and equity company investments plus proceeds from asset sales. The most directly comparable financial measure that is disclosed in the financial statements is cash flows from (used in) operating activities within the company's Consolidated statement of cash flows. This measure is used to evaluate cash available for financing activities (including but not limited to dividends and share purchases) after investment in the business. Reconciliation of free cash flow millions of Canadian dollars From Imperial's Consolidated statement of cash flows Cash flows from (used in) operating activities Cash flows from (used in) investing activities Additions to property, plant and equipment Proceeds from asset sales Loans to equity companies - net Free cash flow 2021 2020 2019 5,476 798 4,429 (1,108) (868) (1,636) 81 82 82 15 (16) (150) 4,464 (4) 2,725 Imperial | 2022 | 75#76Supplemental Information Cash operating costs (Cash costs) Cash operating costs is a non-GAAP financial measure that consists of total expenses, less costs that are non-cash in nature, including, Purchases of crude oil and products, Federal excise taxes and fuel charge, Depreciation and depletion, Non- service pension and postretirement benefit, and Financing. The components of cash operating costs include (1) Production and manufacturing, (2) Selling and general and (3) Exploration, from the company's Consolidated statement of income, and as disclosed in Attachment III of this document. The sum of these income statement lines serve as an indication of cash operating costs and does not reflect the total cash expenditures of the company. The most directly comparable financial measure that is disclosed in the financial statements is total expenses within the company's Consolidated statement of income. This measure is useful for investors to understand the company's efforts to optimize cash through disciplined expense management. Unit cash operating costs (Unit cash costs) Reconciliation of cash operating costs millions of Canadian dollars From Imperial's Consolidated statement of Income Total expenses Less: Purchases of crude oil and products Federal excise taxes and fuel charge Depreciation and depletion Non-service pension and postretirement benefit Financing Total cash operating costs 2021 2020 2019 34,307 24,796 32,055 23,174 13,293 20,946 1,928 1,736 1,808 1,977 3,293 1,598 42 121 143 54 7,132 64 6,289 93 7,467 Unit cash operating costs is a non-GAAP ratio. Unit cash operating costs (unit cash costs) is calculated by dividing cash operating costs by total gross oil-equivalent production, and is calculated for the Upstream segment, as well as the major Upstream assets. Cash operating costs is a non-GAAP financial measure and is disclosed and reconciled above. This measure is useful for investors to understand the expense management efforts of the company's major assets as a component of the overall Upstream segment. Unit cash operating cost, as used by management, does not directly align with the definition of "Average unit production costs" as set out by the U.S. Securities and Exchange Commission (SEC), and disclosed in the company's SEC Form 10-K. Components of unit cash operating cost millions of Canadian dollars Production and manufacturing Selling and general Exploration Cash operating costs Gross oil-equivalent production (thousands of barrels per day) 2021 2020 2019 Upstream (a) Kearl Cold Lake Syncrude Upstream (a) Kearl Cold Lake Syncrude Upstream (a) Kearl Cold Lake Syncrude 4,661 1,902 1,117 1,388 3,852 1,585 920 1,107 4,440 1,964 907 1,286 32 13 47 4,693 1,902 1,117 1,388 3,865 1,585 920 1,107 4,487 1,964 907 1,286 428 186 140 71 398 158 132 69 398 145 140 73 30.04 28.02 21.86 53.56 26.53 27.41 19.04 43.83 30.89 37.11 17.75 24.03 22.42 17.49 42.85 19.90 20.56 14.28 32.87 23.17 27.83 13.31 48.26 36.20 Unit cash operating cost ($/oeb) USD converted at the YTD average forex 2021 US$0.80; 2020 US$0.75; 2019 US$0.75 (a) Upstream includes Kearl, Cold Lake, Imperial's share of Syncrude and other. Imperial | 2022 | 76