Engine No. 1 Activist Presentation Deck slide image

Engine No. 1 Activist Presentation Deck

Benefits of investor engagement but preserving gains will require real change Indexed Share Price "After [Engine No. 1] kicked off a proxy fight against Exxon's board yesterday, the oil giant quickly responded, including by promising to provide updates on efforts to address climate change." - New York Times, Jan. 28, 2021 210% 190% 170% 150% 130% 110% 90% 70% 50% "ExxonMobil is considering further cuts to capital expenditure, changes to its board and more investment in sustainable technologies... The potential changes surfaced hours after Engine No 1, which launched a proxy battle with the group in December, announced that it had formally nominated four independent director candidates to Exxon's board." The Financial Times, Jan. 27, 2021 OCT. 9, 2020 CNBC report regarding reports of activist at XOM 1-Oct-20 16-Oct-20 31-Oct-20 NOV. 30, 2020 XOM reduces capital expenditure program by ~$10bn per year 2022-2025 DEC. 14, 2020 XOM announces new emissions intensity reduction targets DEC. 7, 2020 Engine No. 1 letter to board have been tangible, 15-Nov-20 30-Nov-20 15-Dec-20 30-Dec-20 ExxonMobil "ExxonMobil has outperformed Chevron after [Engine No. 1] launched its campaign." Bloomberg, Feb. 22, 2021 FEB. 2, 2021 XOM enhances focus on capital expenditure discipline and announces formation of new business segment - Low Carbon Solutions "[CalSTRS] is backing Engine No. 1 and other investors formed a coalition to push Exxon into making more sweeping changes. In the face of that pressure, Exxon has cut its spending plans and disclosed updated emissions targets." Reuters, March 1, 2021 MAR. 3, 2021 New 2025 production target of flat production (vs. prior -25% growth) Source: Bloomberg data as of 1-Apr-2021. Quote Sources: Dealbook Newsletter (Jan. 28, 2021). What's scaring Exxon Mobil? New York Times. Akshat Rathi & Kevin Crowley (Feb. 22, 2021). Exxon Pushed by Activist Investor to Set Net-Zero Climate Goal. Bloomberg. Derek Brower, Justin Jacobs & James Fontanella-Khan. (Jan. 27, 2021). Exxon considers capex cuts and board shake-up. Financial Times. Svea Herbst-Bayliss & Jennifer Hiller (Mar. 1, 2021). Exxon names Ubben, Angelakis to board amid investor pressure for change. Reuters. 14-Jan-21 29-Jan-21 13-Feb-21 28-Feb-21 15-Mar-21 30-Mar-21 Chevron REENERGIZE EXXON// 74
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