Investor Presentaiton
SUPPLEMENTAL INFORMATION
DEFINITIONS AND NON-GAAP FINANCIAL MEASURE RECONCILIATIONS, CONTINUED
Structural cost savings (also structural cost reductions, structural cost efficiencies). Structural cost savings describe decreases in the below expenses as a result of
operational efficiencies, workforce reductions and other cost saving measures that are expected to be sustainable compared to 2019 levels. Relative to 2019, estimated
cumulative annual structural cost savings totaled $4.9 billion, of which $1.9 billion was achieved in 2021. The total change between periods in expenses below will reflect
both structural cost savings and other changes in spend, including market factors, such as energy costs, inflation, and foreign exchange impacts, as well as changes in activity
levels and costs associated with new operations. Structural cost savings are stewarded internally to support management's oversight of spending over time. This measure is
useful for investors to understand the Corporation's efforts to optimize spending through disciplined expense management. Forward-looking estimates of structural cost
savings are based on Company plan, and may include management adjustments.
Consolidated Statement of Income line items targeted for structural cost savings
Production and manufacturing expenses
Selling, general and administrative expenses
Exploration expenses, including dry holes
Total
2021
2020
2019
(millions of dollars)
36,035
30,431
36,826
9,574
10,168
11,398
1,054
1,285
1,269
46,663
41,884
49,493
Total shareholder return (TSR). Measures the change in value of an investment in stock over a specified period of time, assuming dividend reinvestment. We calculate
shareholder return over a particular measurement period by: dividing (1) the sum of (a) the cumulative value of dividends received during the measurement period, assuming
reinvestment, plus (b) the difference between the stock price at the end and at the beginning of the measurement period; by (2) the stock price at the beginning of the
measurement period. For this purpose, we assume dividends are reinvested in stock at market prices at approximately the same time actual dividends are paid. Shareholder
return is usually quoted on an annualized basis.
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