Y ANNUAL REPORT Statements of future events or conditions in this report, including projections, targets, expectations, estimates, and business plans, are forward-looking statements. Actual future results, including demand growth and energy mix; capacity growth; the impact of new technologies; capital expenditures; project plans, dates, costs, and capacities; production rates and resource recoveries; efficiency gains; cost savings; product sales; and financial results could differ materially due to, for example, changes in oil and gas prices or other market conditions affecting the oil and gas industry; reservoir performance; timely completion of development projects; war and other political or security disturbances; changes in law or government regulation; the actions of competitors and customers; unexpected technological developments; the occurrence and duration of economic recessions; the outcome of commercial negotiations; unforeseen technical difficulties; unanticipated operational disruptions; and other factors discussed in this report and in Item 1A of ExxonMobil’s most recent Form 10-K.Definitions of certain financial and operating measures and other terms used in this report are contained in the section titled “Frequently Used Terms” on pages 44 and 45. In the case of financial measures, the definitions also include information required by SEC Regulation G.“Factors Affecting Future Results” and “Frequently Used Terms” are also available on the “investors” section of our website.Prior years’ data have been reclassified in certain cases to conform to the 2012 presentation basis.To Our Shareholders 2Financial & Operating Results 4The Outlook for Energy 6Competitive Advantages 8Global Operations 28Upstream 30Downstream 32Chemical 34Corporate Citizenship 36Financial Information 39Frequently Used Terms 44Directors, Officers, and Affiliated Companies 46Investor Information 48General Information 49 The term “project” as used in this publication does not necessarily have the same meaning as under SEC Rule 13q-1 relating to government payment reporting. For example, a single project for purposes of the rule may encompass numerous properties, agreements, investments, developments, phases, work efforts, activities, and components, each of which we may also informally describe herein as a “project.”Energy is the lifeblood of prosperity. It supports higher living standards and enables people around the world to live, work, and achieve as never before. As we look to the future and the energy challenges ahead, one thing is certain: Even with growing efficiency, the world is going to need more energy. Billions of people alive today, and yet to be born, will need affordable and reliable supplies of energy to realize their hopes and aspirations. Meeting this challenge requires technological innovation and disciplined investment focused on long-term value creation. It requires a commitment to integrity and protecting the environment. Our competitive advantages – a balanced portfolio, disciplined investing, high-impact technologies, operational excellence, and global integration – position us well to help meet this challenge and create long-term value for our shareholders.Photo: Construction and fabrication activities are progressing on the Papua New Guinea Liquefied Natural Gas project with start-up scheduled for 2014.Cover Photo: The Kearl Initial Development project began commissioning activities in 2012. Following the completion of future expansion and debottlenecking projects, Kearl is expected to produce 345 thousand barrels of bitumen per day.
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2012 To Our Shareholders
An unrelenting focus on creating long-term value is the commitment we make to all who place their trust in ExxonMobil by investing in our stock. As you will read in the following pages, our unique competitive advantages and steadfast commitment to ethical behavior, safe operations, and good corporate citizenship enable us to deliver long-term value to our shareholders while helping to supply the world’s growing demand for energy.ExxonMobil’s 2012 results again demonstrated the benefits of our approach. Strong financial and operating results included earnings of $45 billion and a return on capital employed of 25 percent, which continue to lead our peer group. Robust cash generation enabled us to fund nearly $40 billion in capital and exploration expenditures to bring new energy supplies and products to the market, while distributing $30 billion to shareholders in the form of dividends and share purchases to reduce shares outstanding. Over the last five years, we distributed $145 billion to our shareholders, and dividends per share have increased by 59 percent, including a 21-percent per share increase in the second quarter of 2012.While these results demonstrate our ability to compete successfully in today’s environment, we maintain a long-term perspective in order to sustain our leadership position and continue supplying energy for generations to come. As we look to the future, we expect that greater supplies of affordable and reliable energy will continue to support job creation and contribute to opportunities for better health, education, and social welfare. Between 2010 and 2040, global energy demand is expected to grow by 35 percent, which will require the responsible development of new energy resources.ExxonMobil’s competitive advantages – a balanced portfolio, disciplined investing, high-impact technologies, operational excellence, and global integration – position us well to help meet this challenge while delivering superior results to our shareholders.Our diverse and highly competitive portfolio consistently delivers strong results. ExxonMobil’s Upstream portfolio includes an industry-leading resource base of 87 billion oil-equivalent barrels, a diverse set of producing assets, and a suite of potential projects and investments that provide opportunity for profitable growth in the future. Our success in 2012 included 2.9 billion oil-equivalent barrels of by-the-bit exploration discoveries and the replacement of 115 percent of our proved reserves, the 19th consecutive year that we replaced more than 100 percent of our production. There is also potential for significant future resource base additions from our broad base of ongoing exploration pursuits, including our Strategic Cooperation Agreement with Rosneft. In the Downstream, our world-class refining assets are geographically diverse and highly integrated with chemical and lubes manufacturing, enabling sustained industry-leading returns. We are also one of the largest chemical companies in the world, with operations in every major region and a unique mix of commodity and specialty chemical business lines. The diversity of our portfolio provides for strong earnings and robust shareholder returns across a variety of global business and economic environments.Our portfolio also offers a balanced set of high-quality investment opportunities that are tested over a wide range of market conditions and time horizons that can span decades. Our disciplined approach to investing includes world-class project 3second quarter of 2012. Rex W. Tillerson, Chairman and CEOmanagement systems that are rigorously and consistently applied around the world. The success of these systems is demonstrated by our ability to efficiently complete large, complex projects in challenging environments. Over the next five years, we plan to invest $190 billion on attractive long-term growth projects to bring new energy supplies to the market. Examples include our Kearl oil sands and offshore Hebron developments in Canada, liquefied natural gas developments in Papua New Guinea and Australia, and unconventional and deepwater investments in the United States. Vital to our success is the pursuit of new technologies. Our investments in fundamental research and development underpin the technological breakthroughs required to advance next-generation energy sources, reduce development costs, improve efficiency, and increase the value of our products. With $5 billion invested in research and development over the last five years, ExxonMobil remains an industry leader in the advancement and application of technology.Generating shareholder value requires a relentless focus on operational excellence and risk management. Exceptional employees, backed by rigorous systems, establish a culture of excellence that is reflected in the outstanding safety performance of our operations around the world. It is a culture of not accepting compromises to our values, and holding each other accountable to high standards.We also gain significant competitive advantage from integration, which enables us to maximize the value of every molecule from the wellhead to the consumer, and rapidly implement best practices around the globe. From optimizing the disposition of feedstocks and products at our integrated manufacturing sites, to leveraging our downstream expertise to increase the value of our upstream resources, our level of integration results in structural advantages that are difficult for competitors to replicate.Central to each of these competitive advantages is our commitment to integrity, ethical behavior, and making positive contributions to society. From the way we design and operate our facilities, to how we engage our business partners and stakeholders, our commitment to integrity underpins everything we do. As a leader in corporate citizenship, we are involved in the global fight against malaria, we work to expand economic opportunities for women around the world, and we strive to raise achievement in math and science in the United States and elsewhere.As you read this year’s Summary Annual Report, you will see your investment in ExxonMobil at work expanding energy supplies, creating breakthrough new technologies, and contributing to global prosperity in a safe, secure, and responsible way. The men and women of ExxonMobil remain committed to creating long-term value for our shareholders, and we look forward to continued success in the future.4
2012 Strong safety and operations performance supported by effective risk managementEarnings of $45 billion and an industry-leading return on average capital employed of 25 percentTotal shareholder distributions of $30 billion(1)Dividends per share increased 21 percent in the second quarter of 2012, the 30th consecutive year of dividend per share increasesProved oil and gas reserves additions of 1.8 billion oil-equivalent barrels, replacing more than 100 percent of production for the 19th consecutive yearProgressed Strategic Cooperation Agreement with RosneftStarted up three major Upstream liquids projects in West Africa with capacity of 350 thousand gross barrels of oil per dayCompleted construction and began commissioning activities of the Kearl Initial Development project (top left) and the Singapore Chemical Expansion project (top right)Functional Earnings and Net Income(2)UpstreamDownstreamChemicalCorporateand FinancingNet
Income(3)
Return on Average Capital Employed(1)ExxonMobil(percent)
353025
Integrated Oil Competitor Average(4)
(billions of dollars)
50403020100–3
2015105
2008200920102011201220082009201020112012
(1) See Frequently Used Terms on pages 44 through 45.
(2) Earnings after income taxes including special items (2008 and 2009).(3) Net income attributable to ExxonMobil.
(4) Royal Dutch Shell, BP, and Chevron values are on a consistent basis with ExxonMobil, based on public information.
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FINANCIAL HIGHLIGHTS(millions of dollars, unless noted)Earnings After Income Taxes
Average Capital Employed(1)Return on Average Capital Employed (%)(1)Capital and Exploration Expenditures(1)UpstreamDownstreamChemicalCorporate and FinancingTotal29,89513,1903,898(2,103)44,880139,44224,03120,148(4,527)179,09421.454.919.3N.A.25.436,0842,2621,4183539,799OPERATING HIGHLIGHTSLiquids production (net, thousands of barrels per day)Natural gas production available for sale (net, millions of cubic feet per day)Oil-equivalent production(2) (net, thousands of oil-equivalent barrels per day)Refinery throughput (thousands of barrels per day)Petroleum product sales (thousands of barrels per day)Chemical prime product sales(1) (thousands of tonnes)2,18512,3224,2395,0146,17424,157
Dividend Growth Since 1983(3)XOM
S&P 500
Consumer Price Index(4)
Total Shareholder Returns(1)XOM
S&P 500
Integrated Oil Competitor Average(5)
(dollars per share)
2.50
(percent per year)
121082.00
1.50
61.00
40.50
219831995200520125 Years10 Years20 Years(1) See Frequently Used Terms on pages 44 and 45.
(2) Natural gas converted to oil-equivalent at 6 million cubic feet per 1 thousand barrels.(3) S&P and CPI indexed to 1983 Exxon dividend.
(4) CPI based on historical yearly average from Bureau of Labor Statistics.
(5) Royal Dutch Shell, BP, and Chevron values are on a consistent basis with ExxonMobil, based on public information.
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EXXONMOBIL 2012 SUMMARY ANNUAL REPORT
The Outlook for Energy: A View to 2040Energy is critical to economic growth. In the decades ahead, affordable and reliable energy supplies will continue to play a key role in improving living standards around the world. In order to meet growing demand, new energy supplies will need to be developed in a safe and environmentally responsible manner.
ENERGY DEMAND CONTINUES TO INCREASEGlobal population recently surpassed 7 billion people for the first time in history. As the world’s population grows, so does the demand for energy. Between 2010 and 2040, worldwide energy demand is projected to increase by about 35 percent as the world’s population further expands to nearly 9 billion people. Energy demand in developing nations is expected to increase 65 percent by 2040, reflecting expanding economies and growing prosperity. And while energy will help fuel advancement in these countries, energy use per capita in 2040 is still expected to be around 60 percent less than in the OECD(1) countries.Efficiency gains are vital to our energy future. Without widespread penetration of energy-saving practices and advanced technologies, the projected 35-percent increase in global energy demand could be roughly four times that amount. Advanced vehicle technologies (e.g., hybrids) and high-efficiency natural gas power plants, for example, are expected to help countries in the OECD, including those in North America and Europe, keep energy use essentially flat even as economic output in these countries grows by 80 percent over the outlook period.TECHNOLOGY AND TRADE ARE CRITICALMeeting this rising energy demand safely and with minimal impact on the environment is a key challenge facing not only ExxonMobil, but also governments and societies around the world. Fortunately, technology is enabling the safe development of once hard-to-produce energy sources. By 2040, oil and natural gas are expected to meet about 60 percent of global demand, and an increasing share of this supply will be produced from deepwater fields and less conventional sources, such as tight oil, oil sands, and shale gas. Innovative technologies being developed and deployed by ExxonMobil are supporting the safe and economic development of these resources.International trade will also continue to play a major role in providing for the world’s energy needs, and evolving supply and demand patterns will create opportunities for new global partnerships. By 2025, North America will likely transition from a net importer to a net exporter of energy, which will create new economic growth opportunities while helping to improve living standards worldwide. The ever-changing energy landscape, advances in technology, and the opening of new markets in major regions all point to an exciting energy future for which ExxonMobil is well prepared to add significant value.Global Energy DemandOECD(1)Non-OECDGlobal Energy Mix20102040(quadrillion BTUs)1,2001,000800600400200(quadrillion BTUs)2500.8% Average growth rate per year1.7%–0.1%Energy saved throughefciency gains ~500 Quads2001501002.4%500.4%5.8%1.8%199020002010202020302040OilGasCoalNuclearBiomass(1) OECD = Organisation for Economic Co-operation and Development.Source: ExxonMobil, 2013 The Outlook for Energy: A View to 2040Wind/Hydro/Solar/GeoBiofuels7ENERGY TRADE FUELS ECONOMIC GROWTHFree trade is critical to supplying the world’s growing energy needs. It provides an efficient link between energy producers and consumers, and is vital to ensuring reliable and affordable supplies for households and businesses. Free trade also helps optimize the allocation of resources and improves living standards worldwide. Today, North America stands out as a prominent example of the dynamic nature of energy supply and demand over time. By capitalizing on advanced technologies to unlock oil and gas resources, North America will likely transition to a net energy exporter by 2025, creating new economic opportunities while supporting growing energy demand in other parts of the world.8EXXONMOBIL 2012 SUMMARY ANNUAL REPORTBalanced PortfolioOur portfolio is unmatched in quality, size, and diversity. A broad base of highly competitive resources, assets, products, and projects within each of our global businesses – Upstream, Downstream, and Chemical – leads to strong financial and operating results across changing market conditions.COMPETITIVE ADVANTAGES:9Operations in 47 countries around the world 87 billion oil-equivalent barrels in our worldwide resource basePhoto: ExxonMobil’s balanced portfolio
includes world-class refining, chemical, and lubes operations, including our integrated manufacturing complex in Beaumont, Texas.
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EXXONMOBIL 2012 SUMMARY ANNUAL REPORT
COMPETITIVE ADVANTAGES:
Balanced Portfolio
The quality, size, and diversity of our portfolio are evident across all three of our global businesses. With operations in 47 countries, we participate in the development of all major resource types and supply key markets with high-value petroleum and petrochemical products.
UPSTREAMExxonMobil’s Upstream portfolio includes high-quality exploration opportunities, an industry-leading resource base, a broad range of world-class projects, and a diverse set of producing assets. The size and diversity of our resource base are unmatched and offer strategic flexibility in our investment options. Our exploration organization focuses on expanding our base of oil and gas resources by exploring for all resource types around the globe. We combine world-class technical expertise and leading research capabilities to provide a distinct competitive advantage in discovering new resources. We also actively pursue discovered but not yet developed resources.Our success in 2012 included by-the-bit exploration discoveries in seven countries that added 2.9 billion oil-equivalent barrels to our resource base. These included discoveries in Australia, Canada, Nigeria, Papua New Guinea, Romania, Tanzania, and the United States. After adjusting for annual production, asset sales, and revisions to existing field estimates, the resource base now totals 87 billion oil-equivalent barrels. These resources represent a diverse global portfolio distributed across all geographic regions and resource types, including conventional, unconventional, and heavy oil. In addition to our balanced resource base and project portfolio, our existing oil and gas production is diversified across all major regions, including North America, Europe, Africa, the Middle East, Asia, and Australia. In North America, we produce oil and gas in Texas, Louisiana, the Gulf of Mexico, California, the mid-continent states, Alaska, offshore eastern Canada, and onshore western Canada. We also have a significant presence in Europe, including the United Kingdom, the Norwegian North Sea, the Netherlands, and Germany. In other regions, we participate in a similarly large number of countries. DOWNSTREAMExxonMobil’s Downstream portfolio includes a network of 32 refineries. We are one of the most geographically balanced petroleum refiners in the world, with approximately 45 percent of our refining capacity in North America, 30 percent in Europe, and the remainder in Asia Pacific and the Middle East. We have significant refining capacity in the mid-continent region of the United States and Canada, which positions us well to capture benefits from growing North American crude oil production. This geographic diversity provides flexibility in acquiring advantaged feedstocks and supplying refined products to major markets. In addition, we have the largest lubricant basestock production capacity in the world.We sell a wide range of petroleum products in more than 120 countries, including transportation fuels such as gasoline and diesel that are sold under our global brands Exxon, Mobil, and Esso. We are a market leader in high-value synthetic lubricants, including our Mobil 1 product line, and we continue to grow the business in key markets at rates considerably faster than that of the industry. Our high-quality products, combined with a strong refining and distribution network, position us as a leading supplier around the world.CHEMICALExxonMobil’s Chemical business produces and sells a broad portfolio of products around the globe. Efficiently produced, high-volume commodity chemicals, such as many general-purpose plastics, capture upside earnings when margins are strong and provide a low cost structure for co-located specialties production. Specialty products, including high-end polymers and lubricant additives, command a market premium due to their usefulness in higher-value applications. They also provide a stable and steadily growing earnings base throughout the market cycles that characterize the chemical business.Not unlike our Upstream and Downstream portfolios, our Chemical manufacturing operations are geographically diverse. This diversity provides us with access to a wide variety of feedstocks, and enables us to competitively supply the global market and capture regional differences in demand. For example, our U.S. Gulf Coast plants have access to ethane feedstock that is currently advantaged, allowing us to competitively supply high-demand growth markets around the world. 11ROSNEFT STRATEGIC COOPERATION AGREEMENTIn 2012, ExxonMobil continued to progress our Strategic Cooperation Agreement with Rosneft covering 31 million acres in the Kara Sea – an area similar to the size of the entire leased area in the Gulf of Mexico – and nearly 2.7 million acres in West Siberia. We are also working with Rosneft to jointly assess and develop oil and gas in the United States and Canada.Right: Seismic data were collected in the Kara Sea in 2012, and exploration drilling is expected to begin in 2014.Our geographically diverse Downstream portfolio includes a network of 32 refineries around the globe. With five refineries located in the mid-continent region of North America, including Joliet, Illinois (above), ExxonMobil is well positioned to benefit from growing crude oil production in the United States and Canada.Chemical Segment EarningsSpecialties(billions of dollars)54321Chemical 2012 Prime Product Sales(percent, tonnes)CommoditiesAmericasAsia PacicEurope/Middle East/Africa200304050607080910112012BOTHOur unique Chemical portfolio captures the benefits of scale from commodity chemicals while maximizing the value SAR and F&Oof specialty chemicals. High-volume commodities capture upside earnings when industry margins are strong, while lower-volume specialties products command a market premium and provide a stable earnings base.Reverse version on F05AReverse version on S11ACHARTIS IN!12EXXONMOBIL 2012 SUMMARY ANNUAL REPORTDisciplined InvestingOur diverse resource and asset base offers a large inventory of high-quality investment options. We carefully evaluate these opportunities across a range of market conditions and time horizons that often span decades. We advance only those projects likely to provide long-term shareholder value, and focus on the efficient use of capital to achieve superior investment returns.COMPETITIVE ADVANTAGES:28 major Upstream project start-ups between 2013 and 201725 percent return on capital employed across our worldwide operations, leading the industryPhoto: In 2012, we began production from the Kizomba Satellites Phase 1 project as part of our world-class Angola Block 15
development offshore West Africa. The project was completed ahead of schedule and with industry-leading safety performance.
We also minimized project cost by utilizing our existing floating production, storage, and offloading facilities.
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EXXONMOBIL 2012 SUMMARY ANNUAL REPORT
COMPETITIVE ADVANTAGES:
Disciplined Investing
ExxonMobil’s disciplined approach to investing focuses on the efficient use of capital. By combining rigorous standards for project assessment with proven project development expertise, we gain advantage in our investments over the long term. This discipline is applied across our entire portfolio and includes identification of key growth opportunities and divestment of assets that no longer meet our long-term objectives. Across our worldwide operations, our return on capital employed has averaged 24 percent over the last five years, and we continue to lead competition in this important measure of long-term shareholder value.
RIGOROUS STANDARDS, LONG-TERM RETURNSInvestment decisions in the energy industry are characterized by time horizons measured in decades. We test projects over a wide range of scenarios to ensure that all relevant risks – including financial, commercial, environmental, technical, and others – are properly identified, thoroughly evaluated, and effectively managed.In 2012, ExxonMobil invested nearly $40 billion to bring new energy supplies and products to the market. Exploration investments are drawn from a diverse portfolio of opportunities, allowing us to effectively manage risk. From a portfolio of more than 120 Upstream projects, we expect to develop 23 billion oil-equivalent barrels across a variety of resource types and geographic regions. Our scale and diversity allow us to selectively invest in projects most likely to deliver superior financial performance and profitable volumes growth. We plan to start up 28 major Upstream projects between 2013 and 2017, which are expected to deliver approximately 1 million net oil-equivalent barrels per day of production by 2017.Our proven project management systems ensure the efficient use of capital and lead to successful start-ups by incorporating best practices that are rigorously and consistently applied to projects around the globe. These systems employ a demanding gate review process overseen by experienced global project teams whose expertise lies in optimizing value from initial discovery through start-up. We also consider the role of technology to maximize capital efficiency. Project economics are carefully assessed, budgets are closely monitored, and reappraisals are routinely performed to further improve our performance. As a result, ExxonMobil-operated projects continue to perform at better cost and schedule certainty than those projects operated by others in which we have an interest.KEY MARKETS GUIDE DECISIONSInvestment decisions are guided by our energy outlook, which evaluates future demands and identifies key growth markets. Our Singapore Chemical Expansion project illustrates how we identify and approach new capital commitments. The project doubled our steam-cracking capacity at the site, added unparalleled feedstock flexibility, and delivered world-class energy and cost efficiencies. Our manufacturing capacity of premium products grew significantly, including several products that ExxonMobil has never before produced in this important region.The Singapore expansion was undertaken because petroleum and chemical demand is expected to rise rapidly in the Asia Pacific region. China’s petrochemical demand has grown by 15 percent per year from 1990 through 2010 and is expected to nearly double this decade. The Singapore plant positions ExxonMobil to participate in Asia’s rapidly growing markets. We are also expanding ultra-low sulfur diesel production capacity in Singapore, as well as lube oil blending capacity in China, to support rising demand for these high-value products in the region.PORTFOLIO MANAGEMENTOur disciplined approach applies not only to new investments, but also to our willingness to divest assets that no longer meet our criteria for providing long-term returns. We have a long-standing practice of regularly reviewing assets to ensure they contribute to our operational and financial objectives, and we divest assets when the sale is deemed to enhance long-term shareholder value.During 2012, we completed the sale of some of our Upstream assets, including a portion of our acreage in Angola and Norway. We also divested our Downstream and Chemical assets in Argentina, Uruguay, Paraguay, Central America, Malaysia, and Switzerland, and restructured and reduced our holdings in Japan. The transition of our U.S. retail fuel business to a more capital-efficient branded wholesaler model is also nearly complete. Over the last 10 years, we have divested or restructured Downstream interests in 19 refineries, 6,000 miles of pipeline, 191 product terminals, 37 lube oil blend plants, and more than 22,000 retail service stations. These Downstream portfolio improvements resulted in a nearly 4-percentage-point improvement in our Downstream return on capital employed.15Major Upstream Project Start-UpsLiquids1.21.00.80.60.40.2Gas(millions of oil-equivalent barrels per day, net)201220132014201520162017INVESTING FOR GROWTH AND VALUESAR and F&OUpstream Projects by Resource Type(percent, oil-equivalent barrels)Heavy Oil/Oil SandsDeepwaterUnconventionalGas & OilConventionalLNGArcticAcid/SourBOTHCHARTIS IN!Our disciplined approach to investing encompasses everything from initial project screening to the divestment of assets that no longer meet our criteria. Rigorous standards are consistently applied across our global portfolio. Our Upstream project portfolio is geographically diverse and represents all major resource types. Near-term major Upstream project start-ups, including our Arkutun-Dagi development in Russia (top right), are expected to deliver approximately 1 million net DATA as of 02/14/2013:oil-equivalent barrels per day of production by 2017. Total (Oil) Total (Gas)Our Papua New Guinea Liquefied Natural Gas project \"2012\" 0.06 0(below) is scheduled to start up in 2014 and will \"2013\" 0.20 0.01support rapidly growing global demand for natural gas.\"2014\" 0.38 0.04\"2015\" \"2016\" \"2017\" 0.54 0.72 0.80 0.150.250.27Reverse version on F07AReverse version on S15AReverse version in differentsize on F27B1.21.00.80.60.40.20.0201220132014201520162017Total (Gas)Total (Oil)16EXXONMOBIL 2012 SUMMARY ANNUAL REPORT17High-Impact TechnologiesCOMPETITIVE ADVANTAGES:ExxonMobil is an industry leader in the development and application of new technologies that create advantage across our global businesses. We pursue high-impact technologies that unlock new energy sources, reduce the cost of our projects, improve the efficiency of our operations, and increase the value of our products. $5 billion invested in research and development since 2008World-record 7.7-mile-long horizontal well drilled in 2012Photo: ExxonMobil’s Subsea Technology project pursues new systems and equipment to support the development of ultra-deepwater and arctic resources.
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EXXONMOBIL 2012 SUMMARY ANNUAL REPORT
COMPETITIVE ADVANTAGES:
High-Impact Technologies
The pursuit of new technologies is vital to our long-term success. We make substantial investments in research and development to unlock new resources, improve the efficiency of our operations, and increase the value of our products. Our ongoing commitment to advancing science and technology leads to significant competitive advantage and strengthens our reputation as a partner of choice.
UNLOCKING RESOURCE VALUEOur Upstream technologies provide advantages across the entire value chain, from early reservoir modeling to the drilling and completion of record-length wells, to safely producing oil and gas in some of the world’s harshest environments. Technology not only unlocks significant value in previously uneconomic resources, but it also reduces our environmental footprint and increases capital efficiency. For example, our patented full-wavefield inversion seismic technology, combined with high-performance computing capabilities, yields unparalleled high-definition subsurface images, a key advantage in identifying new resources and optimizing drilling and reservoir development plans.Extended-reach drilling technology enables access to challenging and complex reservoirs, reducing the number of wells needed to produce oil and gas. Notably, we have drilled 26 of the world’s 30 longest-reach wells. This includes the world-record 7.7-mile-long horizontal well that we drilled in 2012 in the challenging arctic environment near Sakhalin Island in Russia.ExxonMobil’s Subsea Technology project focuses on the development of new systems and equipment to support the development of ultra-deepwater and arctic resources. The project scope consists of more than 20 technologies for subsea processing, power generation, surveillance, and intervention that can be readily deployed. We have developed a compact separation system capable of separating oil, gas, and water at depths of up to 10,000 feet. In ultra-deep water, high external pressures prohibit subsea activities using conventional facilities. However, our advances in subsea separation are expected to provide significant safety, technical, and business benefits to ExxonMobil’s deepwater portfolio, and enable access to isolated fields that otherwise would not be developed. IMPROVING OPERATIONAL EFFICIENCYMargin improvement is a strategic priority. Advantaged technologies in our Downstream and Chemical businesses enable us to reduce our raw material cost, improve catalyst performance, and optimize utilization of our facilities. We reduce raw material cost through the application of proprietary technology in the design and operation of our integrated facilities, which expands our flexibility and allows us to process the most economic feedstocks available. For example, our advanced modeling and characterization tools enable new, lower-cost feeds to be processed while obtaining greater yields of higher-value products.Technology also supports increased production by improving reliability, removing operating constraints, and expanding market outlets. For example, our robust systems and supply chain models help us place molecules in the right market at the right time, aided by molecule management tools that enable real-time optimization of operational variables and product dispositions. In addition, advantages in catalyst technology enable “step skipping” versus traditional production routes, resulting in lower energy consumption and processing cost for the same amount of production.INCREASING PRODUCT VALUEAn understanding of our products at the molecular level enables the development of leading-edge technologies to further improve their value to our customers. For example, we have several active programs focused on providing significant fuel economy benefits in our flagship Mobil 1 AFE products, while maintaining outstanding engine protection and reducing emissions. We also employ models that help us understand how each molecule can be best utilized to produce high-value products.Technology breakthroughs also lead to the development of advanced catalysts to more efficiently upgrade a wide variety of feedstocks into higher-value proprietary products. For example, our metallocene catalysts are being used to manufacture premium chemical products for a wide range of applications including flexible packaging, consumer products, and lubricants. These products deliver sustainability benefits to customers that include reduced raw material use, improved performance, and greater energy efficiency.19ADVANTAGE THROUGH TECHNOLOGYTechnology advances will continue to reshape the world’s energy landscape. ExxonMobil’s research in fundamental science fosters safe and economic development of existing and next-generation energy sources. From solving arctic environment metallurgy challenges to developing state-of-the-art technology to better understand the molecular composition of crude oil, our research activity helps maximize the value of every molecule we produce. Technological advances in our Downstream and Chemical businesses enable us to generate a molecular-level understanding of our products in order to further improve their value to our customers.20EXXONMOBIL 2012 SUMMARY ANNUAL REPORT21Operational ExcellenceCOMPETITIVE ADVANTAGES:Maximizing shareholder value requires a relentless focus on operational excellence and effective risk management. Our management systems enable us to maintain our high operational standards by providing a framework of proven processes and best practices that are applied consistently and rigorously across our worldwide operations.10 percent improvement in refinery energy efficiency since 200245 thousand net oil-equivalent barrels per day of additional production from higher operated reliabilityPhoto: Appraisal well drilling at our Hadrian discovery in the Gulf of Mexico. Our talented workforce, backed by comprehensive management systems, forms a solid foundation for operational excellence.
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EXXONMOBIL 2012 SUMMARY ANNUAL REPORT
COMPETITIVE ADVANTAGES:
Operational Excellence
Sustaining operational excellence is critical to maximizing long-term shareholder value. Driven by our talented and committed workforce, our proven management systems are rigorously deployed around the world to improve our business performance and ensure that our high operating standards are met. These systems enable continuous improvement in our safety performance, increased reliability, and lower operating cost.
CULTURE OF EXCELLENCEOperational excellence begins with exceptional employees. Backed by comprehensive management systems, the men and women of ExxonMobil form the foundation for strong operational performance. We are proud of the culture of excellence reflected in the daily accomplishments of our employees around the world. It is a culture built by decades of past and current employees’ dedication to doing the right things, the right way, and not accepting compromises to our values.Maintaining our culture of excellence begins the day a new employee starts working for ExxonMobil. In addition to having access to the depth and breadth of experiences of employees in similar positions around the world, new employees receive intensive training that is designed to incorporate our proven best practices.Employees also receive diverse experiences and assignments enabled by our global functional organization, which encourages the sharing of information and talent. Our goal is to position employees for a long-term career so they can continue to grow and contribute to our strong experience base and develop into our next generation of leaders. This philosophy applies equally to local workforce development, where we hire and build the skills of nationals in the developing countries in which we operate.OPERATIONS INTEGRITY MANAGEMENT SYSTEMManagement systems are deployed throughout our global operations to ensure the consistent application of high operating standards. Widely regarded as a model for exceptional operational performance, ExxonMobil’s Operations Integrity Management System (OIMS) forms the cornerstone of our commitment to operational excellence and provides a solid framework to achieve safe and reliable operations.OIMS also establishes the framework for managing the safety, security, health, and environmental risks inherent in our business, and provides the structure to ensure that we meet or exceed local regulations. We continually assess the framework and its effectiveness, and incorporate learnings to further improve performance. OIMS is used consistently around the world in all of our business lines, and compliance is tested on a regular basis.RELIABILITY AND EFFICIENCYOperational excellence also involves a steadfast commitment to continuously improve the reliability and efficiency of our assets, which leads to improved profitability. We deploy rigorous reliability systems that define our high expectations for operating and maintaining equipment to preserve its integrity. Our Upstream reliability performance over the last five years demonstrates the effectiveness of our approach, with uptime more than 3 percent higher at ExxonMobil-operated assets versus assets in our portfolio operated by others. This equates to approximately 45 thousand net oil-equivalent barrels per day of additional production.Another way that our commitment to operational excellence improves our profitability is demonstrated by the efficiency of our Downstream assets. Cash operating costs at ExxonMobil refineries have been well below the industry average, driven in large part by energy efficiency. With energy representing about one-third of the operating cost of a refinery, every incremental improvement in energy efficiency results in increased margins and profitability. In 2012, we achieved best-ever energy efficiency for our global refining network, and since 2002 we have improved our refinery energy efficiency by 10 percent.23SYSTEMATIC APPROACHComprehensive management systems are rigorously and consistently applied around the globe, including at the Baton Rouge Refinery (above, left). These systems ensure that our high operational standards are met in all of our operations. Each of the 11 elements of ExxonMobil’s Operations Integrity Management System (below) contains an underlying principle and a set of expectations that apply to all ExxonMobil operations worldwide. Management is responsible for ensuring that robust systems are in place to satisfy these expectations, and compliance is tested on a regular basis.ManagementLeadership,Commitment,andAccountability2RiskAssessmentandManagement3FacilitiesDesign andConstruction4Information/DocumentationOperationsIntegrityAssessmentandImprovement15Personneland Training6OperationsandMaintenance7Managementof Change118Third-PartyServices9IncidentInvestigationand Analysis10CommunityAwareness andEmergencyPreparedness24EXXONMOBIL 2012 SUMMARY ANNUAL REPORTGlobal IntegrationThe global integration of our business lines and functional organizations creates significant advantage by enabling us to maximize the value of every molecule that we produce and rapidly deploy best practices around the globe. Our level of integration results in structural and market advantages that are difficult for competitors to replicate.COMPETITIVE ADVANTAGES:More than90 percent of Chemical operations integrated with Downstream or UpstreamMore than75 percent of refining capacity integrated with Chemical or Lubes operationsPhoto: Ethane, recovered from natural gas at facilities such as our Hawkins gas plant in Texas, is used to produce higher-value chemical products.2526
EXXONMOBIL 2012 SUMMARY ANNUAL REPORT
COMPETITIVE ADVANTAGES:
Global Integration
We derive significant value from our globally integrated business model, which enables us to maximize the value of every molecule that we produce, leverage the advantages of our organizational structure, and optimize co-located manufacturing. Our level of integration results in structural and market advantages that are difficult for competitors to replicate.
OPTIMIZING VALUE IN MANUFACTURINGIntegration enables us to maximize the value of every molecule from wellhead to consumer. For example, more than 75 percent of our refining operations are integrated with chemical or lubes manufacturing. At these integrated sites, complex models are used to decide in real-time whether molecules should be manufactured into gasoline, diesel, jet fuel, chemicals, lubricants, or other products based on current market conditions. To take advantage of the wide variety of feedstocks available at these co-located sites, we have engineered additional flexibility into our assets to further reduce our input cost. We also leverage Integrated Business Teams with representation from various business functions to ensure optimal placement of our products. Our integrated power generation and purchasing expertise enables the capture of additional value by increasing efficiency and reducing emissions. We are an industry leader in the application of cogeneration technology, with interest in five gigawatts of capacity across more than 100 installations. In 2012, we started up a new 220-megawatt cogeneration plant in Singapore and progressed projects that are expected to add more than 300 megawatts of additional cogeneration capacity in Canada and Europe.MAXIMIZING RESOURCE VALUEIntegration also maximizes value during Upstream resource evaluation and development. During the early stages of an Upstream project, our Downstream business provides technical and commercial expertise as well as world-class refining and logistics assets to enhance resource value. Commercial, technical, and supply chain support is provided to develop potential market outlets, identify and resolve challenging crude properties, and optimize logistics.Our Kearl oil sands project demonstrates the benefits of successful integration between our Upstream and Downstream organizations. Our global supply team has a broad understanding of the marketing options for new crudes, while our refining and technology organizations have the technical knowledge to optimize the processing of Kearl production. Sharing and integrating this expertise across our supply chain adds value at every stage and enhances overall resource value and returns. Our Upstream Gas and Power Marketing organization employs a worldwide team of commercial experts that maximize the value of our natural gas and natural gas liquids production. In the United Kingdom, for example, we maximize the throughput from our North Sea natural gas liquids extraction plants to provide feedstocks to our onshore Fife Ethylene Plant in Scotland. We have similar opportunities at our North American facilities that take advantage of increasing liquids-rich unconventional natural gas production.LEVERAGING ORGANIZATIONAL STRUCTUREOur integrated organizational structure also reduces our cost and improves our operations. For example, at each of our integrated sites, we have a shared site management and support services structure, which reduces overhead and administrative cost. We also leverage common utilities and infrastructure to reduce our energy and maintenance expense.Common global processes and a global functional organization also capture value by enabling the rapid deployment of best practices across our global networks, resulting in improved operations. Lessons learned and expertise gained at one site are quickly transferred to other sites, resulting in continuous improvement in all aspects of our business.27Upstream Exploration, Development,and Production Downstream Rening and MarketingChemicalManufacturing and MarketingConsumerOil to MarketRened Products• Transportation Fuels• Lubricants• Other ProductsOilReningGas ProcessingLNG LiquefactionLNG RegasicationChemical PlantNatural GasChemical Products• Commodities• SpecialtiesPower GenerationElectricityGas to MarketGREATER THAN THE SUM OF THE PARTSIntegration boosts the profit margin of each of our global businesses by maximizing the value of every molecule while minimizing cost. The value of integration between the Upstream and Downstream is demonstrated by the success of our Kearl project (right). From initial development through production, we are leveraging our world-class refining and logistics expertise to maximize the value of Kearl production. Also, with more than 75 percent of our refining operations integrated with chemicals or lubes, the combined ROCE of our Downstream and Chemical businesses consistently outperforms the competition.Rening Integration with Chemicals and LubesDownstream and Chemical Combined ROCE(1)ExxonMobilCompetitor Range(2)(percent)80(percent)40603040202010ExxonMobilSource: Parpinelli Tecnon, PIRA dataIndustry Average2008200920102011(1) See Frequently Used Terms on pages 44 and 45.(2) Royal Dutch Shell, BP, and Chevron values are on a consistent basis with ExxonMobil, based on public information.SAR and F&OBOTHCHART2012IS IN!28EXXONMOBIL 2012 SUMMARY ANNUAL REPORTGlobal OperationsAs the world’s largest publicly held oil and gas company, ExxonMobil has a diverse and balanced portfolio of high-quality resources, projects, and assets across our Upstream, Downstream, and Chemical businesses.As of December 31, 2012UPSTREAMOur Upstream business encompasses high-quality exploration opportunities across all resource types and geographies, an industry-leading resource base, a portfolio of world-class projects, and a diverse set of producing assets. We have an active exploration or production presence in 40 countries.DOWNSTREAMOur balanced Downstream portfolio includes refining facilities in 17 countries. We are the world’s largest integrated refiner and manufacturer of lube basestocks and a leading marketer of petroleum products and finished lubricants. Our high-quality products, combined with a strong global refining and distribution network, position us as a premier supplier around the world.CHEMICALExxonMobil Chemical is one of the largest chemical companies in the world. Our unique portfolio of specialty and commodity businesses delivers superior returns across the business cycle. We manufacture high-quality chemical products in 15 countries. With a major presence in Asia Pacific, we are well positioned to competitively supply the rapid chemical demand growth in this region.29UpstreamDownstreamChemicalA30
2012 The disciplined execution of ExxonMobil’s Upstream strategies, underpinned by a relentless focus on operational excellence, drives delivery of our competitive advantages and superior results.
STRATEGIES• Apply effective risk management, safety, and operational excellence• Identify and selectively capture the highest-quality resources• Exercise a disciplined approach to investing and cost management• Develop and apply high-impact technologies• Maximize profitability of existing oil and gas production• Capitalize on growing natural gas and power markets Strong safety and operational performanceIndustry-leading earnings of $29.9 billionProved oil and natural gas reserve additions of 1.8 billion oil-equivalent barrels, replacing more than 100 percent of production for the 19th consecutive yearExploration discoveries totaling 2.9 billion oil-equivalent barrels in Australia, Canada, Nigeria, Papua New Guinea, Romania, Tanzania, and the United States Three major liquids project start-ups in West Africa with a capacity of 350 thousand barrels of oil per dayCommenced commissioning activities at the 110-thousand-barrel-per-day Kearl Initial Development projectDrilled the world’s longest horizontal well (40,604 feet) at the Chayvo field, offshore RussiaSigned agreements to assess tight oil reserves in West Siberia covering nearly 2.7 million acresExpanded our United States unconventional acreage position in the prolific Bakken and emerging liquids-rich Woodford Ardmore plays by more than 275,000 net acresSigned an agreement to acquire nearly 650,000 net acres in the Montney and Duvernay unconventional plays in western Canada Earnings (millions of dollars)Liquids production (net, thousands of barrels per day)Natural gas production available for sale (net, millions of cubic feet per day)Oil-equivalent production(1) (net, thousands of barrels per day)Proved reserves replacement ratio(2)(3) (percent)Resource additions(2) (millions of oil-equivalent barrels)Average capital employed(2) (millions of dollars)Return on average capital employed(2) (percent)Capital and exploration expenditures(2) (millions of dollars)2012
2011
2010
2009
2008
29,8952,18512,3224,2391244,012139,44221.436,08434,4392,31213,1624,5061164,086129,807
26.533,091
24,0972,42212,1484,44721114,580103,287
23.327,319
17,1072,3879,2733,9321002,86073,20123.420,704
35,4022,4059,0953,9211432,23066,06453.619,734
(1) Natural gas converted to oil-equivalent at 6 million cubic feet per 1 thousand barrels.(2) See Frequently Used Terms on pages 44 and 45. (3) Proved reserves exclude asset sales. Includes non-consolidated interests and Canadian oil sands.Note: Unless otherwise stated, production rates, project capacities, and acreage values referred to on pages 30 and 31 are gross. 31
BUSINESS OVERVIEWDemand for oil and other liquid fuels is forecast to increase by about 30 percent from 2010 to 2040. Meeting this demand will require replacing normal conventional resource decline while also increasing production from deepwater, tight oil, oil sands, and natural gas liquids. In total, approximately 113 million oil-equivalent barrels per day will be required to meet liquids demand in 2040. At the same time, global demand for natural gas is likely to increase by about 65 percent. Growth in unconventional supplies is expected to account for approximately 60 percent of that increase and approach one-third of global gas supply by 2040. Meeting growing demand presents a tremendous challenge that will require a long-term view, significant investment, and continuing innovation to develop conventional and unconventional resources.Through the disciplined execution of our Upstream strategies, ExxonMobil is well positioned to help meet this challenge while delivering long-term value for our shareholders. We start by identifying and selectively capturing the highest-quality resources around the globe. In 2012, these efforts added nearly 1.8 million net acres to our exploration portfolio across all resource types and in some of the world’s most prospective areas.We then apply a disciplined approach to investing and cost management. Proven project management systems incorporate best practices from around the globe to rigorously manage our project portfolio from initial discovery to start-up. In 2012, we participated in the start-up of three major liquids projects. We plan to bring 28 major projects online between 2013 and 2017, which are expected to deliver approximately 1 million net oil-equivalent barrels per day of production by 2017.Our steadfast commitment to develop and apply high-impact technologies in areas such as subsurface imaging and well completions, allows us to find, develop, and produce new resources from some of the most challenging reservoirs and extreme environments on earth.We apply robust operations and risk management systems to maximize the profitability of our existing oil and gas production. Over the last five years, our operated facility uptime was more than 3 percent, or more than 45 thousand net oil-equivalent barrels per day, higher than fields operated by others in which we hold an interest.With our detailed knowledge of global energy markets we are also able to capitalize on growing natural gas and power markets. In 2012, we sold more than 15.2 billion net cubic feet per day of gas across 33 countries including participating in liquefied natural gas operations that delivered 61 million tonnes to global markets.Overall, our Upstream business continues to apply effective risk management, safety, and operational excellence across our integrated global businesses.Global Liquids Supply by TypeConventional Crude and CondensateTight OilOil SandsNGLs(millions of oil-equivalent barrels per day)12010080604020Global Natural Gas Production by TypeDeepwaterOther LiquidsBiofuelsConventionalUnconventional(billions of cubic feet per day)6005004003002001002000201020202030204020002010202020302040Source: ExxonMobil, 2013 The Outlook for Energy: A View to 204032
2012 ExxonMobil’s premier Downstream business comprises Refining & Supply; Fuels, Lubricants & Specialties Marketing; and a world-class Research and Engineering organization. Our integrated business model and strategies underpin our continued success throughout the business cycle.
STRATEGIES• Maintain best-in-class operations• Provide quality, valued products and services to our customers• Lead industry in efficiency and effectiveness• Capitalize on integration across ExxonMobil businesses• Maintain capital discipline • Maximize value from leading-edge technologiesIndustry-leading safety performanceZero hydrocarbon spills from owned/operated and long-term leased marine vesselsBest-ever refinery energy efficiency, driven by our Global Energy Management System and cogeneration facilitiesRecord production of ultra-low sulfur diesel (ULSD), reflecting strong operations and new hydrotreating investmentsRecord sales of our industry-leading lubricants, Mobil 1, Mobil Delvac 1, and Mobil SHCStrong earnings of $13.2 billion, reflecting an improved business environment, continued margin and efficiency capture, and portfolio optimizationReturn on average capital employed of 54.9 percent, consistently leading industry throughout the business cycleDownstream capital expenditures of $2.3 billion, including investments in growth markets, higher-value products, efficiency, and environmental improvementsCompleted the upgrade of refinery facilities in Fawley, United Kingdom, increasing ULSD production by more than 10 thousand barrels per day Earnings (millions of dollars)Refinery throughput (thousands of barrels per day)Petroleum product sales (thousands of barrels per day)Average capital employed(1) (millions of dollars)Return on average capital employed(1) (percent)Capital expenditures(1) (millions of dollars)(1) See Frequently Used Terms on pages 44 and 45.20122011201020092008
13,1905,0146,17424,03154.92,2624,4595,2146,41323,38819.12,120
3,5675,2536,41424,13014.82,505
1,7815,3506,42825,099
7.13,196
8,1515,4166,76125,62731.83,529
33
BUSINESS OVERVIEWExxonMobil Downstream is a diverse business with a global portfolio of world-class refining and distribution facilities, lube oil blend plants, and marketing operations. We are the world’s largest refiner and lube basestock manufacturer, with a balanced portfolio of assets and flexible operations that position us to capture opportunities in the high-growth Asia Pacific region as well as mature markets in North America and Europe. We hold an ownership interest in 32 refineries with distillation capacity of 5.4 million barrels per day and lubricant basestock capacity of 126 thousand barrels per day. We are an industry leader in integration with more than 75 percent of our refining operations integrated with chemicals or lubes, which provides unique optimization capability across the entire value chain. Our fuels and lubricants marketing businesses have global reach and a portfolio of world-renowned brands, including Exxon, Mobil, and Esso. Our long-standing record of technology leadership underpins the innovative products and services that deliver superior performance for customers and long-term value for shareholders.BUSINESS ENVIRONMENTBy 2040, demand for transportation fuel is expected to increase by more than 40 percent versus 2010. Relatively flat demand in developed markets is expected to be overshadowed by growth in developing markets, such as China, India, and Latin America. Transportation fuel mix will continue to shift from gasoline to diesel, driven by the expansion of commercial transportation, primarily in developing countries. Gasoline demand growth is expected to flatten with improved passenger vehicle efficiency. Lubricant demand is expected to grow by more than 1 percent per year on increased industrial activity, particularly in Asia. Within the high-value synthetic lubricants sector where we have a leading market position, demand is growing significantly faster at 6 percent per year.The addition of new refining capacity is currently outpacing global demand growth, resulting in a challenging business environment. However, with our integrated business model, world-class assets, and feedstock flexibility, we are able to capture strong downstream margins at the top of the cycle while outperforming competition at the bottom of the cycle. The benefit of these competitive advantages to our shareholders is demonstrated by our sustained industry-leading returns. Downstream Return on Average Capital Employed(1)ExxonMobil(percent)605040302010Integrated Oil Competitor Average(2)200304050607080910112012(1) See Frequently Used Terms on pages 44 and 45.(2) Royal Dutch Shell, BP, and Chevron values are estimated on a consistent basis with ExxonMobil, based on public information.34
2012 ExxonMobil Chemical has highly competitive assets, proprietary technologies, and a unique and balanced global business portfolio. Additionally, integration with ExxonMobil’s Downstream and Upstream businesses is a key differentiator that allows us to consistently outperform competition, as demonstrated by our 2012 results.
STRATEGIES• Consistently deliver best-in-class operational performance• Focus on businesses that capitalize on core competencies• Build proprietary technology positions• Capture full benefits of integration across ExxonMobil operations• Selectively invest in advantaged projects Industry-leading safety performance, including an exemplary record at our Singapore Chemical Expansion projectEarnings of $3.9 billion, supported by strong and growing premium product contributions, Middle East assets, and North America feed flexibility, allowing capture of low-cost feed and energy benefitsReturn on average capital employed of 19.3 percent, averaging 23 percent over the last 10 years and outperforming competition throughout the business cyclePrime product sales of 24.2 million tonnes, including record sales of metallocene products that provide value-added performance advantages in target applicationsCapital expenditures of $1.4 billion, with selective investments in specialty business growth, advantaged feeds, high-return efficiency projects, and low-cost debottlenecksCompleted construction of our Singapore Chemical Expansion project, the largest integrated complex in the ExxonMobil circuitApproved construction of a 400,000-tonnes-per-year specialty elastomers plant in Saudi Arabia, with our joint venture partner, to supply a broad range of synthetic rubber and related products to meet growing demand in the Middle East and AsiaFiled permit applications for a major expansion at our Texas facilities, including a new world-scale ethane cracker and polyethylene trains to meet rapidly growing global demand for premium polymers Earnings (millions of dollars)Prime product sales(1) (thousands of tonnes)Average capital employed(1) (millions of dollars)Return on average capital employed(1) (percent)Capital expenditures(1) (millions of dollars)(1) See Frequently Used Terms on pages 44 and 45.20122011201020092008
3,89824,15720,14819.31,4184,38325,00619,79822.11,450
4,91325,89118,68026.32,215
2,30924,82516,56013.93,1482,95724,98214,52520.42,819
35
BUSINESS OVERVIEWExxonMobil Chemical is one of the largest chemical companies in the world, with a unique portfolio of commodity and specialty businesses and annual sales of more than 24 million tonnes. We have world-scale manufacturing facilities in all major regions of the world, and our products serve as the building blocks for a wide variety of everyday consumer and industrial products.We process feedstocks from ExxonMobil’s Upstream and refining operations and other market sources to manufacture chemical products for higher-value end uses. We focus on product lines that capitalize on scale and technology advantages, building on an unmatched combination of advantaged feedstocks, lower-cost processes, and premium products. As a result, we have strong positions in the markets we serve, and we generate industry-leading returns throughout the business cycle.BUSINESS ENVIRONMENTWorldwide chemical demand growth was relatively flat in 2012, but we anticipate this to strengthen over time, linked to the growth of the broader economy. Most chemical demand growth is in Asia, driven by manufacturing of consumer products for both worldwide export and to serve the growing Asian middle class. These consumers are expected to purchase more packaged goods, appliances, cars, tires, and clothing, many of which are manufactured from the chemicals we produce. Asia Pacific has accounted for more than two-thirds of global demand growth since 2000, and we expect this trend to continue. Over the next decade, we expect global chemical demand to grow by 50 percent, driven by improving prosperity in developing countries.The significant Asian chemical demand growth is spurring new capacity investments around the globe, particularly in North America tied to growing supplies of ethane. Unconventional natural gas development in North America has brought significant feedstock and energy benefits to domestic chemical producers by providing both low-cost ethane feedstock as well as steam and energy savings. This has enabled North American producers to export chemical products competitively to growth markets around the world.With our global supply network of highly competitive world-scale facilities, ExxonMobil Chemical is well positioned to meet the needs of China, India, and other major growth markets. While the relative attractiveness of feedstocks changes over time, our feed flexibility and integration allow us to adapt to changing market conditions and consistently outperform competition.Industry Global Chemical DemandAsia Pacic250Industry U.S. Ethane SupplyRest of World(volume, indexed)200(millions of tonnes per annum)2001501501001005050200020102020200020102020Source: IHS Chemical and ExxonMobil estimatesSource: ExxonMobil and consultant estimates36EXXONMOBIL 2012 SUMMARY ANNUAL REPORT7,500 acres of protected wildlife habitat actively managed in 2012$330 million invested to improve energy efficiency, reduce flaring, and reduce GHG emissions in 2012Photo: Workers at our Kearl development in Canada have made it a priority to protect wildlife. In 2012, Kearl became the first oil sands mining development to receive the Wildlife Habitat Council’s Wildlife at Work certification.
37
Corporate Citizenship
ExxonMobil’s commitment to corporate citizenship underpinned the strong performance in our Upstream, Downstream, and Chemical businesses in 2012. From the way we design and operate our facilities to the way we engage our business partners and stakeholders, our unwavering focus on safety, environmental protection, and high ethical standards establishes the foundation for everything we do.
Our corporate citizenship approach focuses on addressing the challenge of sustainability – balancing economic growth, social development, and environmental protection so that future generations are not compromised by actions taken today. We are committed to making positive contributions to society’s broader sustainability objectives and managing the impact of our operations on local economies, societies, and the environment.PROTECTING SAFETY AND THE ENVIRONMENTThe safety of our operations is at the foundation of Safety Performanceour commitment to corporate citizenship. Safety is a Lost-Time Injuries and Illnessescore value for us – one that shapes our decisions every day and at every level in our operations. We are dedicated ExxonMobil Employees(1)ExxonMobil Contractors(1)to providing a safe work environment for our employees, U.S. Petroleum Industry Benchmark(2)contractors, and the communities in which we operate. (incidents per 200,000 work hours)Through our Operations Integrity Management System, 0.5we rigorously and consistently apply high standards and expectations for safety and environmental performance 0.4across our global operations. Responsible energy development – critical to social and 0.3economic progress – also requires a commitment to protecting the environment. Our environmental stewardship 0.2processes are based on detailed analyses that include environmental and social impact assessments and risk 0.1management. In response to a pre-project assessment conducted in Alaska, for example, we adjusted our plans in consideration of local traditions, including texturing and 2001020304050607080910112012coating the pipelines to mitigate glare, and building pipelines (1) Includes XTO Energy Inc. data beginning in 2011.a minimum of 2 meters above the tundra to allow caribou (2) Employee safety data from participating American Petroleum Institute companies (2012 industry data not available at time of publication).and hunters to pass. DATA as of 01/24/2013: \"XOM\" \"Contractors\" \"Benchmark\"LEADE\"01\" RSHIP I0.094 N PROCESS SAF0.125 ETY0.3While petroleum operations involve risks, they can be \"02\" 0.083 0.088 0.34effectively managed when appropriate measures are \"03\" 0.071 0.082 0.3taken. Process Safety focuses on the prevention of \"04\" 0.043 0.062 0.29fires, explosions, and releases of hazardous materials \"05\" 0.069 0.054 0.24from operating facilities. ExxonMobil is committed to “06” 0.05 0.052 0.19providing a safe work environment for our employees, “07” 0.031 0.065 0.17contractors, and the communities in which we operate. “08” 0.054 0.049 0.17Our process safety approach focuses on reducing risk “09” 0.043 0.040 0.15through the flawless execution of our Operations Integrity “10” 0.048 0.031 0.13Management System (OIMS). Rigorously deployed \"11\" 0.061 0.086 0.12throughout our global operations, OIMS establishes “12” 0.037 0.049 expectations by which our facilities are designed, operated, and maintained in order to continuously improve our safety and environmental performance.Employees monitor operations at our chemical plant in Beaumont, Texas.0.40.338
EXXONMOBIL 2012 SUMMARY ANNUAL REPORT
CONTRIBUTING TO SOCIETYOil and gas operations have the ability to positively transform communities. Our approach to engaging the stakeholders living and working near our sites demonstrates our fundamental belief that strong, informed communities lead to a stable business environment. Through public-private partnerships and ongoing stakeholder engagement, we work to improve social and economic conditions wherever we operate. In Indonesia, for example, we responded to local needs for water infrastructure through a community partnership that benefited more than 25,000 people in 20 villages. The local community maintains ownership of the initiative through a water committee that manages budgeting, construction, and water distribution. A local nongovernmental organization provided mentoring and technical assistance, while ExxonMobil contributed initial funding and ongoing support.ExxonMobil’s community water partnership has benefited more than 25,000 people in Indonesia.
SUPPORTING LOCAL ECONOMIESExxonMobil works systematically to develop local economic capacity in a way that benefits people, communities, and our business over the long term. Contributing to the economic development of local communities is an important part of our business. This strategic objective is embedded into our project plans. In 2012, for example, ExxonMobil celebrated the completion of the first offshore structures to be designed, procured, and constructed in Nigeria. The event represented years of dedication and collaboration between joint venture partners Mobil Producing Nigeria and Nigeria National Petroleum Corporation. The project supports ExxonMobil’s goal to build and maintain a reliable and globally competitive supply chain wherever we operate.To learn more about our citizenship efforts, please see the annual Corporate Citizenship Report at exxonmobil.com/citizenship.Our work with local suppliers resulted in the completion of the first offshore structures to be designed, procured, and constructed in Nigeria.
39 Dallas, Texas February 27, 2013SUMMARY OF ACCOUNTING POLICIES AND PRACTICESand liabilities. Actual results could differ from these estimates.countries with a history of high inflation and certain other countries.to the customer.LIFO). Inventories of materials and supplies are valued at cost or less.their fair value are recognized in earnings.with the offset in equity, net of deferred taxes.Supplemental Information booklet.40
EXXONMOBIL 2012 SUMMARY ANNUAL REPORT
(millions of dollars, unless noted)2012
2011
2010
Net income attributable to ExxonMobilCash flow from operations and asset salesCapital and exploration expendituresResearch and development costsTotal debt at year endAverage capital employed(1)(1)(1)44,88063,82539,7991,04211,581179,094389,68076.941,06066,47836,7661,04417,033170,721401,249
82.1
30,46051,67432,2261,01215,014145,217364,035
83.6
Market valuation at year endRegular employees at year end (thousands) 2012
2011
2010
Return on average capital employed(1) (percent)Earnings to average ExxonMobil share of equity (percent)Debt to capital (percent)(2)25.428.06.31.21.0162.424.227.39.62.60.9453.4
21.723.79.04.50.9442.2
Net debt to capital(3) (percent)Current assets to current liabilities (times)Fixed charge coverage (times) 2012
2011
2010
Dividends per common share (dollars)Dividends per share growth (annual percent)Number of common shares outstanding (millions) Average Average – assuming dilution Year endTotal shareholder return(1) (annual percent)Common stock purchases (millions of dollars)Market quotations for common stock (dollars) High Low Average daily close Year-end close(1) See Frequently Used Terms on pages 44 and 45.(2) Debt includes short-term and long-term debt. Capital includes short-term and long-term debt and total equity.(3) Debt net of cash and cash equivalents, excluding restricted cash.2.1817.81.856.3
1.744.8
4,6284,6284,5024.721,0684,8704,8754,73418.722,055
4,8854,8974,97910.113,093
93.6777.1386.5386.5588.2367.0379.7184.76
73.6955.9464.9973.12
41
(millions of dollars)2012
2011
2010
Revenues and Other IncomeSales and other operating revenue(1)Income from equity affiliatesOther incomeTotal revenues and other incomeCosts and Other DeductionsCrude oil and product purchasesProduction and manufacturing expensesSelling, general, and administrative expensesDepreciation and depletionExploration expenses, including dry holesInterest expenseSales-based taxes(1)453,12315,01014,162482,295467,02915,2894,111486,429
370,12510,6772,419383,221
265,14938,52113,87715,8881,84032732,40935,558403,56978,72631,04547,6812,80144,8809.709.70266,53440,26814,98315,5832,08124733,50339,973413,17273,25731,05142,2061,14641,0608.438.42
197,95935,79214,68314,7602,14425928,54736,118330,26252,95921,56131,39893830,4606.246.22
Other taxes and dutiesTotal costs and other deductionsIncome before income taxesIncome taxesNet income including noncontrolling interestsNet income attributable to noncontrolling interestsNet income attributable to ExxonMobilEarnings per common share (dollars)Earnings per common share – assuming dilution (dollars)(1) Sales and other operating revenue includes sales-based taxes of $32,409 million for 2012, $33,503 million for 2011, and $28,547 million for 2010. The information in the Summary Statement of Income (for 2010 to 2012), the Summary Balance Sheet (for 2011 and 2012), and the Summary Statement of Cash Flows (for 2010 to 2012), shown on pages 41 through 43, corresponds to the information in the Consolidated Statement of Income, Consolidated Balance Sheet, and the Consolidated Statement of Cash Flows in the financial statements of ExxonMobil’s 2012 Financial Statements and Supplemental Information booklet. See also Management’s Discussion and Analysis of Financial Condition and Results of Operations and other information in ExxonMobil’s 2012 Financial Statements and Supplemental Information booklet.42
EXXONMOBIL 2012 SUMMARY ANNUAL REPORT
(millions of dollars)2012
2011
AssetsCurrent assets Cash and cash equivalents Cash and cash equivalents – restricted Notes and accounts receivable, less estimated doubtful amounts Inventories Crude oil, products and merchandise Materials and supplies Other current assetsTotal current assetsInvestments, advances and long-term receivablesProperty, plant and equipment, at cost, less accumulated depreciation and depletionOther assets, including intangibles, netTotal assetsLiabilitiesCurrent liabilities Notes and loans payable Accounts payable and accrued liabilities Income taxes payableTotal current liabilitiesLong-term debtPostretirement benefits reservesDeferred income tax liabilitiesLong-term obligations to equity companiesOther long-term obligationsTotal liabilitiesCommitments and contingenciesEquity
Common stock without par value Earnings reinvestedAccumulated other comprehensive incomeCommon stock held in treasuryExxonMobil share of equityNoncontrolling interestsTotal equityTotal liabilities and equity(1) For more information, please refer to Note 16 in ExxonMobil’s 2012 Financial Statements and Supplemental Information booklet. The information in the Summary Statement of Income (for 2010 to 2012), the Summary Balance Sheet (for 2011 and 2012), and the Summary Statement of Cash Flows (for 2010 to 2012), shown on pages 41 through 43, corresponds to the information in the Consolidated Statement of Income, Consolidated Balance Sheet, and the Consolidated Statement of Cash Flows in ExxonMobil’s 2012 Financial Statements and Supplemental Information booklet. See also Management’s Discussion and Analysis of Financial Condition and Results of Operations and other information in ExxonMobil’s 2012 Financial Statements and Supplemental Information booklet.9,58234134,98710,8363,7065,00864,46034,718226,9497,668333,79512,66440438,64211,6653,3596,22972,96334,333214,6649,092331,052
3,65350,7289,75864,1397,92825,26737,5703,55523,676162,1357,71157,06712,72777,5059,32224,99436,6181,80820,061170,308
See footnote 19,653365,727(12,184)(197,333)165,8635,797171,660333,7959,512330,939(9,123)(176,932)154,3966,348160,744331,052
43
(millions of dollars)2012
2011
2010
Cash Flows from Operating ActivitiesNet income including noncontrolling interestsAdjustments for noncash transactions Depreciation and depletion Deferred income tax charges/(credits) Postretirement benefits expense in excess of/(less than) net payments Other long-term obligation provisions in excess of/(less than) paymentsDividends received greater than/(less than) equity in current earnings of equity companiesChanges in operational working capital, excluding cash and debt Reduction/(increase) – Notes and accounts receivable – Inventories – Other current assets Increase/(reduction) – Accounts and other payablesNet (gain) on asset salesAll other items – netNet cash provided by operating activitiesCash Flows from Investing ActivitiesAdditions to property, plant and equipmentProceeds associated with sales of subsidiaries, property, plant and equipment, and sales and returns of investmentsDecrease/(increase) in restricted cash and cash equivalentsAdditional investments and advancesCollection of advancesAdditions to marketable securitiesSales of marketable securitiesNet cash used in investing activitiesCash Flows from Financing ActivitiesAdditions to long-term debtReductions in long-term debtAdditions to short-term debtReductions in short-term debtAdditions/(reductions) in debt with three months or less maturityCash dividends to ExxonMobil shareholdersCash dividends to noncontrolling interestsChanges in noncontrolling interestsTax benefits related to stock-based awardsCommon stock acquiredCommon stock soldNet cash used in financing activitiesEffects of exchange rate changes on cashIncrease/(decrease) in cash and cash equivalentsCash and cash equivalents at beginning of yearCash and cash equivalents at end of year47,68115,8883,142(315)1,643(1,157)(1,082)(1,873)(42)3,624(13,018)1,67956,17042,20615,583142544(151)(273)(7,906)(2,208)2228,880(2,842)1,14855,345
31,39814,760(1,135)1,700160(596)(5,863 )(1,148)9139,943(1,401)(318)48,413
(34,271)7,65563(972)1,924––(25,601)(30,975)11,133224(3,586)1,119(1,754)1,674(22,165)
(26,871)3,261(628)(1,239)1,133(15)155(24,204)
995(147)958(4,488)(226)(10,092)(327)204130(21,068)193(33,868)217(3,082)12,6649,582702(266)1,063(1,103)1,561(9,020)(306)(16)260(22,055)
924(28,256)
(85)4,8397,82512,664
1,143(6,224)598(2,436)709(8,498)(281)(7)122(13,093)1,043(26,924)(153)(2,868)10,6937,825
The information in the Summary Statement of Income (for 2010 to 2012), the Summary Balance Sheet (for 2011 and 2012), and the Summary Statement of Cash Flows (for 2010 to 2012), shown on pages 41 through 43, corresponds to the information in the Consolidated Statement of Income, Consolidated Balance Sheet, and the Consolidated Statement of Cash Flows in ExxonMobil’s 2012 Financial Statements and Supplemental Information booklet. See also Management’s Discussion and Analysis of Financial Condition and Results of Operations and other information in ExxonMobil’s 2012 Financial Statements and Supplemental Information booklet.44
EXXONMOBIL 2012 SUMMARY ANNUAL REPORT
Frequently Used Terms
Listed below are definitions of several of ExxonMobil’s key business and financial performance measures and other terms. These definitions are provided to facilitate understanding of the terms and their calculation. In the case of financial measures that we believe constitute “non-GAAP financial measures” under Securities and Exchange Commission Regulation G, we provide a reconciliation to the most comparable Generally Accepted Accounting Principles (GAAP) measure and other information required by that rule.
Total Shareholder Return • 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.Proved Reserves • Proved reserves in this publication for 2009 and later years are based on current SEC definitions, but for prior years, the referenced proved reserve volumes are determined on bases that differ from SEC definitions in effect at the time. Specifically, for years prior to 2009 included in our five-year average replacement ratio, reserves are determined using the SEC pricing basis but including oil sands and our pro-rata share of equity company reserves for all periods. Prior to 2009, oil sands and equity company reserves were not included in proved oil and gas reserves as defined by the SEC. In addition, prior to 2009, the SEC defined price as the market price on December 31; beginning in 2009, the SEC changed the definition to the average of the market prices on the first day of each calendar month during the year. For years prior to 2009 included in our 19 straight years of at least 100-percent replacement, reserves are determined using the price and cost assumptions we use in managing the business, not the historical prices used in SEC definitions. Reserves determined on ExxonMobil’s pricing basis also include oil sands and equity company reserves for all periods.Proved Reserves Replacement Ratio • The reserves replacement ratio is calculated for a specific period utilizing the applicable proved oil-equivalent reserves additions divided by oil-equivalent production. See “Proved Reserves” above.Resources, Resource Base, and Recoverable Resources • Along with similar terms used in this report, refers to the total remaining estimated quantities of oil and gas that are expected to be ultimately recoverable. ExxonMobil refers to new discoveries and acquisitions of discovered resources as resource additions. The resource base includes quantities of oil and gas that are not yet classified as proved reserves, but which ExxonMobil believes will likely be moved into the proved reserves category and produced in the future. The term “resource base” is not intended to correspond to SEC definitions such as “probable” or “possible” reserves.Heavy Oil and Oil Sands • Heavy oil, for the purpose of this report, includes heavy oil, extra heavy oil, and bitumen, as defined by the World Petroleum Congress in 1987 based on American Petroleum Institute (API) gravity and viscosity at reservoir conditions. Heavy oil has an API gravity between 10 and 22.3 degrees. The API gravity of extra heavy oil and bitumen is less than 10 degrees. Extra heavy oil has a viscosity less than 10 thousand centipoise, whereas the viscosity of bitumen is greater than 10 thousand centipoise. The term “oil sands” is used to indicate heavy oil (generally bitumen) that is recovered in a mining operation.Capital and Exploration Expenditures (Capex) • Represents the combined total of additions at cost to property, plant and equipment and exploration expenses on a before-tax basis from the Summary Statement of Income. ExxonMobil’s Capex includes its share of similar costs for equity companies. Capex excludes depreciation on the cost of exploration support equipment and facilities recorded to property, plant and equipment when acquired. While ExxonMobil’s management is responsible for all investments and elements of net income, particular focus is placed on managing the controllable aspects of this group of expenditures.Prime Product Sales • Prime product sales are total product sales excluding carbon black oil and sulfur. Prime product sales include ExxonMobil’s share of equity-company volumes and finished-product transfers to the Downstream. (millions of dollars)20122011201020092008
Net income attributable to ExxonMobilFinancing costs (after tax) Gross third-party debt ExxonMobil share of equity companies All other financing costs – net Total financing costsEarnings excluding financing costsAverage capital employedReturn on average capital employed – corporate total44,880(401)(257)100(558)45,438179,09425.4%41,060(153)(219)116(256)41,316170,72124.2%
30,460(803)(333)35(1,101)31,561145,21721.7%
19,280(303)(285)(483)(1,071)20,351125,05016.3%
45,220(343)(325)1,48581744,403129,68334.2%
ROCE is a performance measure ratio. From the perspective of the business segments, ROCE is annual business segment earnings divided by average business segment capital employed (average of beginning and end-of-year amounts). These segment earnings include ExxonMobil’s share of segment earnings of equity companies, consistent with our capital employed definition, and exclude the cost of financing. The Corporation’s total ROCE is net income attributable to ExxonMobil excluding the after-tax cost of financing, divided by total corporate average capital employed. The Corporation has consistently applied its ROCE definition for many years and views it as the best measure of historical capital productivity in our capital-intensive, long-term industry, both to evaluate management’s performance and to demonstrate to shareholders that capital has been used wisely over the long term. Additional measures, which are more cash flow based, are used to make investment decisions.45
(millions of dollars)20122011201020092008
Business Uses: Asset and Liability PerspectiveTotal assetsLess liabilities and noncontrolling interests share of assets and liabilities Total current liabilities excluding notes and loans payable Total long-term liabilities excluding long-term debt Noncontrolling interests share of assets and liabilitiesAdd ExxonMobil share of debt-financed equity-company net assetsTotal capital employedTotal Corporate Sources: Debt and Equity PerspectiveNotes and loans payableLong-term debtExxonMobil share of equityLess noncontrolling interests share of total debtAdd ExxonMobil share of equity-company debtTotal capital employed333,795331,052302,510233,323228,052
(60,486)(90,068)(6,235)5,775182,7813,6537,928165,863(438)5,775182,781(69,794)(83,481)(7,314)4,943175,4067,7119,322154,396
(966)4,943175,406
(59,846)(74,971)(6,532)4,875166,0362,78712,227146,839
(692)4,875166,036
(49,585)(58,741)(5,642)5,043124,3982,4767,129110,569
(819)5,043124,398
(46,700)(54,404)(6,044)4,798125,7022,4007,025112,965(1,486)4,798125,702
Capital employed is a measure of net investment. When viewed from the perspective of how the capital is used by the businesses, it includes ExxonMobil’s net share of property, plant and equipment and other assets less liabilities, excluding both short-term and long-term debt. When viewed from the perspective of the sources of capital employed in total for the Corporation, it includes ExxonMobil’s share of total debt and equity. Both of these views include ExxonMobil’s share of amounts applicable to equity companies, which the Corporation believes should be included to provide a more comprehensive measure of capital employed. Exploration portion of Upstream Capex (millions of dollars)Exploration resource additions (millions of oil-equivalent barrels)Exploration resource addition cost per OEB (dollars)20122011201020092008
4,7403,7341.275,4643,9061.404,1214,7250.873,7182,8601.302,8712,2301.29
Exploration resource addition cost per oil-equivalent barrel is a performance measure that is calculated using the Exploration portion of Upstream capital and exploration expenditures (Capex) divided by exploration resource additions (in oil-equivalent barrels – OEB). ExxonMobil refers to new discoveries, and the non-proved portion of discovered resources that were acquired, as exploration resource additions. Exploration resource additions include quantities of oil and gas that are not yet classified as proved reserves, but which ExxonMobil believes will likely be moved into the proved reserves category and produced in the future. The impact of the XTO Energy Inc. merger transaction is excluded in 2010. (millions of dollars)20122011201020092008
Net cash provided by operating activitiesProceeds associated with sales of subsidiaries, property, plant and equipment, and sales and returns of investmentsCash flow from operations and asset sales56,1707,65563,82555,34511,13366,478
48,4133,26151,674
28,4381,54529,983
59,7255,98565,710
Cash flow from operations and asset sales is the sum of the net cash provided by operating activities and proceeds associated with sales of subsidiaries, property, plant and equipment, and sales and returns of investments from the Summary Statement of Cash Flows. This cash flow is the total sources of cash from both operating the Corporation’s assets and from the divesting of assets. The Corporation employs a long-standing and regular disciplined review process to ensure that all assets are contributing to the Corporation’s strategic objectives. Assets are divested when they are no longer meeting these objectives or are worth considerably more to others. Because of the regular nature of this activity, we believe it is useful for investors to consider proceeds associated with asset sales together with cash provided by operating activities when evaluating cash available for investment in the business and financing activities, including shareholder distributions. (millions of dollars)20122011201020092008
Dividends paid to ExxonMobil shareholdersCost of shares purchased to reduce shares outstandingDistributions to ExxonMobil shareholdersMemo: Gross cost of shares purchased to offset shares issued under benefit plans and programs10,09220,00030,0921,0689,02020,00029,0202,055
8,49811,20019,6981,893
8,02318,00026,0231,703
8,05832,00040,0583,734
The Corporation distributes cash to shareholders in the form of both dividends and share purchases. Shares are purchased both to reduce shares outstanding and to offset shares issued in conjunction with company benefit plans and programs. For purposes of calculating distributions to shareholders, the Corporation only includes the cost of those shares purchased to reduce shares outstanding.46
EXXONMOBIL 2012 SUMMARY ANNUAL REPORT
Directors, Officers, and Affiliated Companies*
BOARD OF DIRECTORSPeter Brabeck-Letmathe Larry R. FaulknerWilliam W. GeorgeProfessor of
Management Practice, Harvard University; Former Chairman of the Board and Chief Executive Officer, Medtronic, Inc.
(medical technology)
Jay S. Fishman Chairman of the Board and Chief Executive Officer, The Travelers Companies (property and casualty insurance)
Ursula M. BurnsChairman of the Board and Chief Executive
Officer, Xerox Corporation (business process and IT outsourcing, document technology and solutions)
Rex W. Tillerson Chairman of the Board and Chief Executive Officer
President Emeritus,
Chairman of the Board, The University of Nestlé (nutrition, health Texas at Austin; and wellness)Former President,
Houston Endowment (charitable foundation)
STANDING COMMITTEES OF THE BOARDAUDIT COMMITTEE FUNCTIONAL AND SERVICE ORGANIZATIONSUPSTREAMM.J. Boskin (Chair), P. Brabeck-Letmathe, U.M. Burns, L.R. Faulkner, S.S Reinemund
BOARD AFFAIRS COMMITTEE N.W. Duffin S.M. Greenlee R.M. Kruger S.N. Ortwein T.R. Walters J.P. Williams, Jr.
DOWNSTREAMPresident, ExxonMobil Development Company(1)President, ExxonMobil Exploration Company(1)President, ExxonMobil Production Company(1)President, ExxonMobil Upstream Research CompanyPresident, ExxonMobil Gas & Power Marketing Company(1)President, XTO Energy Inc.(1)K.C. Frazier (Chair), H.H. Fore, W.W. George, S.J. Palmisano
COMPENSATION COMMITTEE
W.W. George (Chair), J.S. Fishman, S.J. Palmisano, E.E. Whitacre, Jr.
FINANCE COMMITTEE
A.J. Kelly T.J. Wojnar, Jr. D.W. Woods
CHEMICALR.W. Tillerson (Chair), M.J. Boskin, P. Brabeck-Letmathe, U.M. Burns, L.R. Faulkner, S.S Reinemund
PUBLIC ISSUES AND CONTRIBUTIONS COMMITTEE
President, ExxonMobil Fuels, Lubricants & Specialties Marketing Company(1)President, ExxonMobil Research and Engineering CompanyPresident, ExxonMobil Refining & Supply Company(1)E.E. Whitacre, Jr. (Chair), J.S. Fishman, H.H. Fore, K.C. Frazier
EXECUTIVE COMMITTEE
S.D. Pryor
OTHERPresident, ExxonMobil Chemical Company(1)R.W. Tillerson (Chair), M.J. Boskin, W.W. George, S.J. Palmisano, S.S Reinemund
B.W. Milton President, ExxonMobil Global Services Company
47
Steven S ReinemundDean of Business,
Wake Forest University;
Retired Executive Chairman of the Board, PepsiCo (consumer food products)
Michael J. BoskinT.M. Friedman Professor of Economics and Senior Fellow, Hoover Institution, Stanford University
Henrietta H. ForeChairman of the Board and Chief Executive Officer, Holsman International (manufacturing, consulting, and investments)
Edward E. Whitacre, Jr.Kenneth C. FrazierFormer Chairman of the Board, General Motors Company (automaker); Chairman Emeritus, AT&T (telecommunications)
Chairman of the Board, President and Chief Executive Officer, Merck & Company (pharmaceuticals)
Samuel J. PalmisanoPresiding Director; Former Chairman of the Board, International Business Machines Corporation (computer hardware, software, business consulting, and information technology services)
OFFICERSR.W. Tillerson M.W. Albers M.J. Dolan A.P. Swiger S.J. Balagia K.P. Cohen W.M. Colton T.M. Fariello M.A. Farrant R.S. Franklin
Chairman of the Board(1)Senior Vice President(1)Senior Vice President(1)Senior Vice President(1)
Vice President and General Counsel(1)Vice President – Public and Government AffairsVice President – Corporate Strategic Planning(1)Vice President – Washington OfficeVice President – Human ResourcesVice President and President – ExxonMobil Upstream Ventures(1)S.M. Greenlee A.J. Kelly R.M. Kruger P.T. Mulva S.D. Pryor D.S. Rosenthal R.N. Schleckser
Vice President(1)Vice President(1)Vice President(1)Vice President and Controller(1)Vice President(1)Vice President – Investor Relations and Secretary(1)Vice President and Treasurer(1)J.M. Spellings, Jr. Vice President and General Tax Counsel(1)T.R. Walters J.J. Woodbury D.W. Woods
Vice President(1)Vice President – Safety, Security, Health & EnvironmentVice President(1)* As of February 1, 2013(1) Required to file reports under Section 16 of the Securities Exchange Act of 1934.48
EXXONMOBIL 2012 SUMMARY ANNUAL REPORT
Investor Information
SHAREHOLDER SERVICESELECTRONIC DELIVERY OF DOCUMENTSShareholder inquiries should be addressed to ExxonMobil Shareholder Services at Computershare Trust Company, N.A., ExxonMobil’s transfer agent:ExxonMobil Shareholder Services Registered shareholders can receive the following documents online, instead of by mail, by contacting ExxonMobil Shareholder Services:P.O. Box 43078 Providence, RI 02940-30781-800-252-1800 • Annual Meeting Materials• Tax Documents• Account StatementsBeneficial shareholders should contact their bank or broker for electronic receipt of proxy voting materials.ELIMINATE ANNUAL REPORT MAILINGS(Within the United States and Canada)1-781-575-2058 (Outside the United States and Canada)An automated voice-response system is available 24 hours a day, 7 days a week. Service representatives are available during normal business hours.Registered shareholders can access information about their ExxonMobil stock accounts via the Internet at computershare.com/exxonmobil.STOCK PURCHASE AND DIVIDEND REINVESTMENT PLANRegistered shareholders may eliminate annual report mailings by marking their proxy card, or by writing or calling ExxonMobil Shareholder Services.Beneficial shareholders should contact their bank or broker to eliminate annual report mailings.EXXONMOBIL PUBLICATIONSComputershare Trust Company, N.A., sponsors a stock purchase and dividend reinvestment plan, the Computershare Investment Plan for Exxon Mobil Corporation Common Stock. For more information and plan materials, go to computershare.com/exxonmobil or call or write ExxonMobil Shareholder Services.DIVIDEND DIRECT DEPOSITThe following publications are available without charge to shareholders and can be found on the Internet at exxonmobil.com. Requests for printed copies should be directed to ExxonMobil Shareholder Services.• Summary Annual Report• Annual Report on Form 10-K• Financial & Operating Review• Corporate Citizenship Report• The Outlook for Energy: A View to 2040• The LampShareholders may have their dividends deposited directly into their U.S. bank accounts. If you would like to elect this option, go to computershare.com/exxonmobil or call or write ExxonMobil Shareholder Services for an authorization form.CORPORATE GOVERNANCEOur Corporate Governance Guidelines and related materials are available by selecting “investors” on our website at exxonmobil.com.Exxon Mobil Corporation has numerous affiliates, many with names that include ExxonMobil, Exxon, Mobil, Esso, and XTO. For convenience and simplicity, those terms and terms such as Corporation, company, our, we, and its are sometimes used as abbreviated references to specific affiliates or affiliate groups. Abbreviated references describing global or regional operational organizations, and global or regional business lines are also sometimes used for convenience and simplicity. Similarly, ExxonMobil has business relationships with thousands of customers, suppliers, governments, and others. For convenience and simplicity, words such as venture, joint venture, partnership, co-venturer, and partner are used to indicate business and other relationships involving common activities and interests, and those words may not indicate precise legal relationships. Included in this Summary Annual Report are financial and operating highlights and summary financial statements. For complete financial statements, including notes, please refer to ExxonMobil’s 2012 Financial Statements and Supplemental Information booklet included in the Summary Annual Report mailing. The Financial Statements and Supplemental Information booklet also includes Management’s Discussion and Analysis of Financial Condition and Results of Operations. The “investors” section of ExxonMobil’s website (exxonmobil.com) contains the Proxy Statement and other company publications, including ExxonMobil’s Financial & Operating Review. These publications provide additional detail about the company’s global operations.The following are trademarks, service marks, or proprietary process names of Exxon Mobil Corporation or one of its affiliates: ExxonMobil, Esso, Exxon, Mobil, Mobil 1, Mobil Delvac 1, Mobil SHC, and Taking on the World’s Toughest Energy Challenges.The following third-party trademarks or service marks referenced in the text of the report are owned by the entities indicated: Wildlife at Work (Wildlife Habitat Council), PWC + Design (The Trustees of the PWC Business Trust).General InformationPRINTED IN U.S.A.Corporate HeadquartersExxon Mobil Corporation 5959 Las Colinas Boulevard Irving, TX 75039-2298Additional copies may be obtained by writing or phoning: Phone: 972-444-1000 Fax: 972-444-1505Shareholder RelationsExxon Mobil Corporation P.O. Box 140369 Irving, TX 75014-0369Market InformationThe New York Stock Exchange is the principal exchange on which Exxon Mobil Corporation common stock (symbol XOM) is traded.Annual MeetingThe 2013 Annual Meeting of Shareholders will be held at 9:00 a.m. Central Time on Wednesday, May 29, 2013, at:©2013 EXXON MOBIL CORPORATIONThe Morton H. Meyerson Symphony Center 2301 Flora Street Dallas, TX 75201The meeting will be audiocast live on the Internet. Instructions for listening to this audiocast will be available on the Internet at exxonmobil.com approximately one week prior to the event.EXXONMOBIL ON THE INTERNETA quick, easy way to get information about ExxonMobil ExxonMobil publications and important shareholder information are available on the Internet at exxonmobil.com:• Publications• Stock Quote• Dividend Information• Contact InformationWHETSTONE DESIGN• Speeches• News Releases• Investor Presentations• Corporate GovernanceCorporate Headquarters5959 Las Colinas Blvd.Irving, Texas 75039-2298exxonmobil.com
Annual Report 002CSN8214
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