TotalEnergies SE (TTE) Earnings Call Transcript & Summary

[Interpreted] Ladies and gentlemen, dear shareholders, hello. After 2 years during which the General Shareholders' Meeting was held with -- we are happy, all of us, to welcome you to this General Shareholders' Meeting at the Salle Pleyel. For members of your Board and of the Executive Committee are present in the first row of this room, and I want to thank you by allowing the shareholders to take part in the important decisions of the company this is a strong moment of expression of the shareholder democracy, and this matters to us. To promote this, we wanted to put the necessary means to allow you to participate remotely. You can follow it directly through its retransmission live on totalenergies.com. The shareholders who follow this live cannot participate in the vote but they were able to vote beforehand through vote access. We want to thank them, and we encourage you to use the system in order to promote the shareholder dialogue and to better take into account the expectations of the shareholder you have had the possibility to send us between the 9th of May and the 20th of May questions, which are not written questions as per the law, but we've received several and this meeting will allow us to address a few of these questions in the limited of the time we have today. Like every year, we will dedicate significant time to answer the largest number of questions possible that you wanted to ask. For those who are present here, Salle Pleyel and for all of the questions that were posted on the platform. I also want to inform you that we have journalists present in this room. I welcome everybody who is interested to see the shareholders and I declare this meeting open. I will make a comment for those who are connected remotely to this meeting to say that the conditions of access to Salle Pleyel are complicated. There's a limited number of shareholders who were able to make it. Even if we're not responsible for this, I want to apologize for those who wanted to come in person who were not able to come but the meeting can happen normally because a certain number of shareholders are present, and I am now going to proceed to the legal formalities. So we are going to form the bureau of this assembly. FCPE, TotalEnergies Actionnariat France represented by [indiscernible] who is present as well as Amundi, represented by [ Mr. Edouard Dubois ] who is also present have accepted to be auditors of this assembly. They have the largest number of votes amongst the shareholders present in the room. I want to thank them, and I declare the bureau constituted. I want to nominate as Secretary, Mr. Jean-Pierre Sbraire, your CFO, who's right next to me. After the provisional vote, 28,001 shareholders are present. They are -- so this represents 1,912,945,246 votes. This number of shares being superior to the legal quorum for an ordinary and extraordinary shareholder meeting. So we are exceeding [ 68.87% ]. So the document that were available on the desk are in the hands of the Secretary. The documents that are necessary in the regulation were shared with those who requested them. I want to remind you that the general shareholders meeting is meeting to deliberate on the points of the agenda, which are on Page 4 of the brochure that is made available to you at the entrance of the room. The reports are in this brochure and in the documents that are available to you. In these conditions we are not going to read them in full. We are now going to proceed with a certain number of presentations that will show you the content of the various reports submitted to the assembly and talk about the various topics we want to cover. Jean-Pierre Sbraire, your CFO, will talk about the financial statements of 2021 and the beginning of 2022. Financially, in 2021, there was a rebound linked to the global recovery and our model showed its relevance and allow us to really take a full benefit of this favorable environment. The auditors will also talk about the various reports established during -- for this assembly during video recorded. Then Marie-Christine Coisne-Roquette will talk about the governance of this assembly. She will talk about the Board and its work and present the Board members that are being renewed. Mark Cutifani, the Chair of the Compensation Committee, will also -- have also a prerecorded segment. We prerecorded this so we can subtitle it in French. He will talk about compensation elements for the Chairman and CEO. I will then talk about the strategy of the company and its highlight. Before I yield the floor to the Financial Director, we are going to show a video concerning safety, which is the core value of this company at the heart of our industrial project. [Presentation]

[Interpreted] Good morning, everyone. I have the pleasure to present you with the results of 2021 for TotalEnergies. As Patrick Pouyanné said in his introduction, 2021 was marked by a rebound of the economic activity on the global level. During the second quarter of 2021, which was translated by a strong demand in petrol and gas -- oil and gas. This led an increase in prices to exceptional levels for those concerning gas at the summer of 2021 and increased by metrological factors. The level for prices of petro -- gas and oil has reached levels that we had in the second quarter of 2020. In this context, our multi-energy context has shown its relevance and showed how we could fully take advantage of this favorable environment, namely in LNG and electricity, but also, of course, in oil, which, as you know, finances our transformation. In 2021 the results and profitability of the company were therefore a high increase compared to 2020, a year that was struck conversely by the strong impact of the COVID crises. The net results was EUR 13 million in 2021, and the profitability of the own funds reached 17% and of those of average capital employed almost 14%. This shows clearly the great quality of our portfolio and our operations. All segments contributed to this performance. First of all, exploration and production, which, of course, benefited from a favorable environment supported by the increase in prices of oil and gas with a net adjusted result higher than $10 million. The LNG activity recorded a net adjusted result close to $6 million. These results rely on our LNG portfolio integrated on the global level, taking advantage of the oil and gas prices that are increased, but also the trading activity, the renewables and electricity, although only at the beginning, have provided a positive contribution in terms of net adjusted results, supported by the market of electricity in Europe. The upstream was especially touched by the COVID pandemic in 2021 but high margins in petrochemistry and the return to results before the crisis for marketing and services despite sales volumes that have decreased led to a net adjusted result for marketing and services at $3.5 billion. Let's now move to the cash flow. In 2021, we saw the company almost made $30 million of cash flow, almost double what we had in 2020. They lead to a strong contribution increasing of LNG. The exploration and production was a strong contributor of cash flow with a gross margin of almost $19 billion in 2021 with investments over the year of $6 billion upstream, therefore, generated a net cash flow of $12 billion over the year. Our activity in LNG integrated on the global level contributed after -- at $6 billion of cash flow, which shows that the growth of our volumes and the expansion along the value LNG chain supports the activity to a level that is structurally higher. The upstream resisted well. We added more than $3 billion cash flow to the company and in renewables and electricity, it contributed positively in terms of cash flow with almost $1 billion for the first time in TotalEnergies' history. In this context, we have more than doubled EBITDA with $42 billion better than 2020. As you know, mastering breakeven is at the heart of our sustainability. We have, therefore, decreased our organic cash breakeven with the dividend below $25 million in 2021. This breakeven point helps us capture fully the environment with these higher prices. This is what we have been able to show in 2021, and this is what we will show in the accounts that we have published in -- we will publish in the first quarter of 2022. This breakeven point will help us be resilient to disruptions of the market in the future. So how have we allocated this cash flow? The cash flow we generated, this $29 billion in 2021 as defined by the Board of Directors. In this environment, which remains volatile, we invested in a disciplined manner, $13.3 billion in -- so 2021. So we were cash full because of the uncertainties due to the COVID crisis. $13.3 billion of investments. This means that 45% of the $29.1 billion of gross margins were in sales -- finance and reinvested in profitable and sustainable projects to show that TotalEnergies is a multi-energy company. We invested half of our investments to maintain the basis of our activity, the upstream in oil and downstream oil and another part for growth in LNG and renewable electricity. This represents 25% of investment. Therefore, more than $3 billion in 2021, with mainly the share of 20% in Adani Green, a developer for renewable projects in India for $2 billion at the beginning of 2021. We also invested in new decarbonated molecules in projects to produce biofuels, biogas, circular economy and plastic. On the other hand, we continue to reduce our net debt and decrease the debt ratio to 15.3% at the end of 2021. It was 21.7% at the end of 2020. Having a solid statement is the first line of defense since we are a company that is exposed to the price of commodities. It is therefore a clear priority that we have to reduce the debt ratio when we are at a high position in the cycle overall materials. We have allocated 33% cash flow. The $29 billion I've mentioned before as recurring to invest to shareholders just after the investment expenses in the form of a dividend, $8.2 billion, plus $1.5 billion buyout of shares during the fourth quarter of 2021. Let's now look at the performance per sector. First of all, upstream. TotalEnergies continues to be among the majors -- the hydrocarbon producer with low-cost hydrocarbons in terms of production cost per barrel with very low emissions in terms of CO2 per barrel produced. Since 2014, you can see we are at $5 equivalent per barrel. At the same time, the gas emissions, CO2 emissions and Scope 1 and 2, assets operated upstream reduced to 17 kilograms of CO2 per oil barrel equivalent. The mastering of operational expenses and the decrease of CO2 emissions are in key indicators of efficiency and the proof of sustainability of our operations. This clearly represents an advantage that we want to keep during the years, and I will confirm that all of the TotalEnergies teams at all levels of the company are mobilized to maintain these performances. Let's now look at upstream. The cash flow upstream was at $5.5 billion, an increase of 17% compared to 2021. But below the level before the crisis in 2019. Our refinery activities have suffered from a decrease of demand in oil products, especially for road fuels and air fuels in line with the lockdowns and due to the pandemic. In Europe, the refinery margins have remained low, impacted also during the second quarter by -- semester by the cost of energy. We, therefore, were able to adjust things consequently and the treatment of our refineries. The petrochemistry, on the other hand, has provided very good results, taking advantage of the support in markets and polymers using the health products and equipment for security, which contributed to fight against COVID-19. The marketing and services saw its cash flow decrease in 2020 or had seen it in 2020 due to the sanitary crisis. In 2021, as you can see, they recovered the level before crisis at $2.6 billion. We were at $2.5 billion in 2019 before the crisis. Thus, it is important to underline this that between 2019 and 2020, sales -- marketing and services have gone down by 20%. This illustrates clearly the success of the strategy of selectivity and arbitration of the M&S portfolio between volumes with low margins and emissions of Scope 3. The invest in upstream have been established at $2.2 billion in 2021. Upstream therefore -- downstream generated $3.3 billion in net cash flow 2021, which helped the company with this integrated model and downstream to have -- to the net cash flow of the company and thus despite the COVID crisis. Let's now move to the integrated gas renewables and power IGRP and the LNG activity first. For this, this activity generated, as you saw -- see it here on screen a cash flow of $5.6 billion. So a leap of 75% compared to the previous year. These results rely on an LNG portfolio of the company that is integrated on the global scale. This portfolio is the fruit of development and a growth during the last years, which make TotalEnergies a world leader in LNG. Sales in LNG have therefore reached 42 million tons in 2021, increase of more than 20% compared to levels before COVID crisis. Thanks to this wide portfolio and integration, we are able to capture the rebound of prices in oil and gas and fully take advantage of our trade activities. Therefore, 2021 was the proof of the growth of volumes and expansion all along the value chain and LNG value chain that it supports the activity in a structurally higher level. Second pillar of integrated gas renewables and power. Renewable activities and link to electricity. The growth of the company in this activities is accelerating with investments -- net investments for more than $3 billion in 2021. Therefore, we extended our global presence to 70 countries, and we added more than 10 gigawatts of gross capacity in our renewable portfolio in 2021. Thus, at the end of 2021, our portfolio in renewables and electricity reached 43 gigawatts in capacity, 10 gigawatts in production, 7 in -- so 10 in installed, 7 in construction and 26 in development. In 2021, the performances of this activity, renewables and electricity exceeded our expectations. The net production of electricity exceeded 21 terawatts, a leap of 50% compared to the previous year. And you can see this production is slightly ahead from our forecast. In addition to this strong growth in renewable energies, we benefited from the increase of electricity -- flexible electricity production based on gas linked to the addition of 4 CCGT plants, 2 in France, 2 in Spain at the end of 2020. Of course, we also benefited from the exceptional volatility of markets, better activity, trading activity in electricity was able to capture the EBITDA proportional share for TotalEnergies of the renewable and electricity activity established at $1.4 billion in 2021, thus 2.5x the level of the previous year and over our expectations. This exceeded -- this reflects the lever reflect effect linked to the integration we put in place and the activity that helps us take advantage of the favorable market conditions. Zoom on our performance during the first quarter 2022. The good performances of 2022 amplified during 2022, helped by favorable environment and supported by the company fundamentals. The rebound of energy prices noticed during the second semester 2021 pursued during the first quarter of 2022 in the contrast of strong geopolitical tensions due to the war in Ukraine. The IFRS result was $4.9 billion, with a provision of $4.1 million concerning namely the Arctic 2 projects in LNG in Russia. The profitability of own capital or average capital use established at 18% at the end of March on over 12 months. We've realized a sale financing gross margin of $11.6 billion and a free cash flow of $5.8 billion. This helped us reduce the debt ratio of the company on 31st March, 2022 at 12.5%. This slide helps us compare our performance of TotalEnergies in 2021 with that of our peers. As you can see, TotalEnergies was #1 for profitability of own capital with 17% on 2021. We also indicated in this slide, the Sustainalytics notation, the more the score is low, the more the risk is judged as weak as well. You see we are better positioned than competition. This reflects our efforts achieved in this area along the years. In 2021, we changed more than 33% of the -- we returned 33% of this gross sale financial margins to shareholders through dividends and buybacks of shares thus positioning us in line with our European peers and American peers. So the return to shareholder -- those over 3 years was at 12%, placing us far behind our European peers. Last point now on dividend, clearly indicates the health of the company and a pillar of shareholder remuneration. The Board of Directors of TotalEnergies defined as its priorities in terms of cash flow allocation, the support of dividend through the economic cycles. Thus the dividend wasn't reduced during the peak of the crisis in 2021 contrarily to most of our peers and a lot of companies around the world. For the year 2021, the Board of Directors suggest to establish the dividend set at EUR 2.64 per share. This would represent one of the greatest yields of the CAC 40 for 2021 and a yield -- an average gross yield of dividend of 5.9% over these last 10 years. For 2022, the Board of Directors defined a policy of return to shareholders, including an increase of the provisions of dividends of 5%, taking into account the structural growth of cash flow generated by the LNG activity and the electricity activity that I mentioned before. I will now give the floor to Mr. [indiscernible] from Ernst & Young for him to present the different reports established by the auditors.

[Interpreted] Ladies and gentlemen, dear shareholders, it is my pleasure to present in the name of the auditors, E&Y, KPMG the reports that we've established for you. These reports for the period of 2021 are amongst the documents made available to you. These are the report on the consolidated and corporate accounts of the period. The report on the regulated agreements and the report on the potential operations. I'm now going to present the essential points of the reports on the annual and consolidated accounts. Our audit and diligence have taken into account the specificities of your company. Our work according to our professional standards give a reasonable assurance that we have not seen any significant anomalies. Our report is presented in pages of 574 to 577 of the universal registration document. We have appointed to this as well as the work we have done. In our report, we have shown the key point of the audit for the securities and the debt and the work that we've done with this. In line with the first resolution of your assembly, we certify the corporate accounts of the period of 2021. We have no observations on the management report and the report of the Board on the governance. Concerning the consolidated accounts, our report is showed between Page 374 and Page 389 of the universal registration document. We've taken into account the specificities of your company in terms of activities, organization, accounting rules and fight against corruption schemes. We were regularly kept informed of the -- we regularly kept the Board informed with our work. We have presented the 3 key points of the audit for 2021. The first one is new this year. These points have related to the impact of the climate change and the energy transition on the financial statements in line with the resolution approved on the general shareholders' meeting on the 28th of May 2021 in terms of energy transition and carbon neutrality. Secondly, the valuation of the depreciation of the noncurrent assets of the exploration and production activities of the EP and integrated gas renewables and power IGRP divisions and to the estimate of the proven reserves and proven developed reserves of hydrocarbons for EP and for IGRP. In conclusion of our work and in liaison with the second resolution of your meeting. We certify without reservations, the consolidated accounts of the company that are being presented to you for the period of 2021. The fifth resolution covers the regulated conventions. This is presented in Page 68 of the universal registration document. It clarifies the absence of such agreements. The convention for making the free premises available for Alliance United Way was already mentioned in the previous shareholders' meeting. In line with the resolution, we have admitted a report on the operations of the capital. We have not had any observation on the modalities and the observation in the report provided to the Board. During the use of these various authorization in line with Resolution 17 to 22, we could establish if the case may be additional report to finalize these capital operations led by your Board. There you have it. Ladies and gentlemen, these are the summaries of our various reports for 2021. Thank you for your attention.

[Interpreted] I'm now going to give the floor to Marie-Christine Coisne-Roquette, reference Board member who is going to present the [indiscernible] company.

[Interpreted] Dear shareholders, good morning. I'm very happy to be able to talk to you today after 2 years of not holding -- of holding the general assembly behind closed doors due to COVID. All the Board Members are present today and therefore, bringing testimony of their mobilization for the key moments in the life of this company. I do have the pleasure to present to you as the reference Board member, the activities led by the Board for the good governance of this company in 2021. First of all, your Board has 4 specialized committees, audit, governance and ethics, remuneration strategies and social responsibilities. These committees were strongly mobilized because the Board gathered 9 times in 2020 with a presence rate of 100% of the Board members and 18 working sessions with more 99% of participation rate. Those participation rate are very high and as you will realize, bringing testimony as if needed of the very strong level of implication of Board members in the life of this company. My mission as a reference board member is to be the privileged spokesperson of the CEO and guaranteed well in the functioning of governance within the body and also participating to the relationship and building that relationship with Board members notably on the governance of this company. As in 2020, we held a meeting of the Independent Board members that I presided as a reference Board member and during meeting we exchanged on the strategic stakes for this company and its functioning. Coming to the composition of your Board. As you know, TotalEnergies evolved in a very competitive industry. An industry that is moving in order to answer and be up to par with all the challenges in terms of energy transition. In order to accompany this transition to a multi-energy company, your company can rely on a diverse Board member in terms of gender, 6 women, 8 men; in terms of nationalities, 5 nationalities are represented in this Board and a diversity of competencies and expertise, thanks to the variety of profiles of the 14 Board members composing the Board. In this world, where energy is vital for the development of the economies where energy is indispensable to day-to-day life, the expertise of Board member of the company such as TotalEnergies need to cover various domains, aiming at a good understanding and a good analysis of the strategic of the environment and the guidelines and the setting of guidelines for the company. This is why your Board members have a various and complete expertise and vast majority of them in the big company, the big international companies and other parts of them having very recognized competencies in the field of energy and industry and more in the health of the Board members also have the significant expertise in governance and risk management. Furthermore, many of them, of us have experience in the field of sustainable development and climate. The Board has decided to strengthen its competencies -- the competencies of the members offering a training program, which is at the same time collective and individual. The last item on the composition of the Board, its level of independence. As you can see on that slide, we have 82% of members of independents. And I would like to recall you the definition of independents. We set the limit of the mandate to a total duration of 12 years. This duration, which is combined with the AFEP-MEDEF Code seems very appropriate to the long-term objectives in terms of energy for these companies. We need continuity, we need independence and autonomy. And these need of continuity within the Board also leads us to suggest the renewable of mandates of Ms. Lise Croteau, here present; Jean Lemierre, here present, too; and Maria Van der Hoeven. This renewal have mandates is suggested for a new period of 3 years. And I would also like to salute the word of Ms. Valérie Della Puppa Tibi of which mandated as a representative of the employees in the Board come to an end at the end of the assembly and you will also have to designate a new Board member -- staff Board member to replace Ms. Della Puppa Tibi. Four candidates were suggested and the Board decided to accept the candidacy of Ms. Emma de Jonge here present, too. I have the pleasure to interview those 4 candidates for this position to our Board member before the Board agrees and approves the candidacy of Ms. Emma de Jonge. Ms. Emma de Jonge is of Dutch citizenship, and she will make it possible for the Board to have the opinion of a non-French member. The candidacy was suggested by the common fund -- common fund TotalEnergies Actionnariat France, which is the most represented fund in the shareholding of this company. The other candidate, Ms. Marina Delendik designated by the [indiscernible] TotalEnergies Capital. Mr. Alexandre Garrot elected as a candidate by the trade -- by the staff member and Ms. Agueda Marin designated as candidate by the same fund, Actionnariat International Capitalisation. You will have the opportunity to share all those candidates in a video that will be displayed after my intervention. Coming to the words of the Board in the implementation of the transformation strategy of this company. Please remind, as you can see on the left-hand side of this chart in May 2020, TotalEnergies announced its ambition to reach carbon neutrality by 2050 together with the company. A year later, in May 2021, your Board decided and took the initiative to submit to the approval of general assembly a resolution linked to the ambition of your company in the field of sustainable development and energy transition towards carbon neutrality supporting this very strongly last year. We also indicated that the easy part the strategy, the transformation strategy also of TotalEnergies. In our yearly seminar, your Board decided to invite external upheaval to benefit from an outside look on the climate and sustainable development within this strategy. After discussing with Christiana Figueres, the former Executive Secretary of the UN FCCC for companies, the Board invited in October 2021 Mr. Fatih Birol, the Director of the International Agency of Energy, IAE to understand the net zero scenarios of this organization, complementing the yearly seminar. The Board decided to formalize in December 2021, a program training of the Board members on climate as indicated previously. In March last year according to its commitment in the resolution docs in May 2021, the Board have decided to adopt the strategic report, sustainability and climate progress report 2022 through which the reports on all the progress made by the company in the implementation of its ambition in terms of sustainable development and energy transition towards company strategy. Your Board therefore decides and sanction following this report to take a new initiative in terms of discussion and dialogue with the shareholders given a new resolution is submitted to your vote today in order to vote on this report and the progress made. But given this question of energy transition is at the heart of the strategy of this company, the Board decided such consultation be yearly as the approval of the accounts of this company. As a reference Board member, I regularly meet with shareholders to exchange on the strategy of your company. And in April last year -- in April this year our discussions were affecting to by the report, sustainability and climate report of which the completeness received by all of the people. I have the opportunities to talk to you. The debate on climate and energy, sometimes triggers some controversy. Some thing of the brutal stop of oil, they dream about it. But this is not desirable given the demand in terms of energy. We need to understand the opinion of the vast majority trying to right balance in time and in topics. The strategy of TotalEnergies is a long-term strategy, as you will certainly have understood and it will need time to bear its fruit. The transformation of your company experience and our governance with all the members of the Board here presence that I would like to read confirms it and the competency. Thank you very much for your attention.

[Interpreted] I'd now like to suggest here the candidates of which the renewal of mandates are submitted to the vote of this General Assembly. Jean Lemierre, Maria Van der Hoeven and Lise Croteau as well as the candidates that were just presented by Marie-Christine in her speech.

[Interpreted] Ladies and gentlemen, good morning. My name is Lise Croteau, I'm Canadian. I hold a Master of Accounting and have more than 30 years of experience in the field of renewable energies. I was CFO in Hydro-Québec, a member of the management. It wasn't until May 2018 responsible for financial integrity, governance and risk management of this major integrated company producing, manufacturing and distributing electricity for the whole of Quebec. I was elected in the general assembly in May 2019, and I, therefore, thereby participate to the work of the Board. And the acceleration of the transformation of becoming TotalEnergies with its clear ambitions and clear objective in terms of renewable development and sustainable developments and carbon neutrality in line with the objectives of the company. I do have financial expertise and a strong experience in the renewable energies. And I would like to ask you to vote for a second mandate as a Board member of TotalEnergies to continue this transformation, which has very well started. Thank you very much for your attention and your trust.

[Interpreted] Dear shareholders since 2016, I have been a member of this Board member and since 2021. I'm also presenting the Audit Committee. The transparency in the ESG topics, the turnover and the transformation of this company become all the more relevant as we speak. Those are very important topics in light of the acute results are indispensable to pay dividends but also to invest in low-carbon electricity coming from gas and renewable energies. TotalEnergies has identified climate stake a couple of years ago and incorporated in its strategic guidelines. We have developed the vision for carbon neutrality by 2050. And being an energy's stakeholders, we've an integrated presence on all the line of products which represents for TotalEnergies a major asset. It is obvious for you as shareholders and for all the stakeholders that the company -- that the company does what it says. I'm proud of your trust and I hope I'll be up to par in the 3 years to come.

[Interpreted] Good morning. I'm Jean Lemierre, I'm the President and the Chair of the Board of BNP Paribas and I've been a member of this Board since 2016. I do take part to the Strategy Committee and the CSR Committee. Providing good energy to the company is an essential assignment. We have to do it respecting the sustainability objectives among which the decarbonation to which the Board fully subscribed. TotalEnergies uses this integrated value creation model and good management and collaborators. Over the past few years, I have dedicated special attention with my colleagues to the diversification of the activities of this company to put it in full arm with the objective of climate change. I would like to pursue these efforts, thanks to the profits of the existing assets, this at the service of the company, the shareholders and the collaborators in the moving environment. Thank you so much for your trust and for listening to me.

[Interpreted] Ladies and gentlemen, shareholders, hello. My name is Emma de Jonge. I am a Dutch citizen and France is my home country now. I want to thank the Board for having agreed to my application. As far as I'm concerned, after a few years within the IT of Capgemini, I have joined our beautiful company in 1990. I took several positions as project manager, a purchaser and internal consultant with IT. Then I was working in project management and change management in international contact for operational divisions. If you grant me your trust, I would be honored to contribute to the work of the Board with my experience in the digital as a support to digital transition -- to energy transition and to my commitment to fair transition. Thank you.

[Interpreted] Hello. My name is Agueda Marin Rodriguez. I'm an employee of the company for the past 25 years. I'm currently in charge of HR division and IT systems with TotalEnergies Marketing in Spain. I am the Country Chair for the capital increase, and I'm part of the Board of the employee shareholders. I am aware of the shareholder issues for TotalEnergies. I'm ready to contribute my experience as well as a novel international vision and continue my commitment to the employees and the company. Thank you.

[Interpreted] Hello. My name Marina Delendik. I'm an employee of TotalEnergies for the past 13 years. I'm in charge of doing a legal intelligence on investment project for exploration and production. I'm a specialist of corporate law, and I work with managers, HR, finances and tax specialist. I would like to become a Board member representing the employee shareholders of TotalEnergies, and I'm convinced that I would be a great Board member. Thank you very much.

[Interpreted] Dear shareholders of TotalEnergies, hello. My name is Alexandre Garrot. I've been part of the company for 12 years now, and I currently work as a senior economist for renewable and electricity. Our challenges, the challenges of the energy sectors are huge. My objective here is a dual one. To participate actively to the activities of the Board in order to accelerate this transition and on the other hand to be the link between shareholder employees to capitalize on this transition. For this, I have my competencies to listen, to convince and my knowledge of participative processes.

[Interpreted] Very well. After having listened to each of the candidate explain why they wanted the Board members and why our Board members wanted their mandates renewed, we are now going to listen to Mark Cutifani as Head of the Compensation Committee. Mark has recorded his sequence. Mark will speak in English. So the sequence is subtitled into French.

Dear shareholder, since the shareholders meeting on May 28, 2021, I've had the honor of chairing the Compensation Committee alongside Marie-Christine Coisne-Roquette and Valerie Della Puppa Tibi. Jacques Aschenbroich will join us after this shareholders' meeting and Angel Pobo will replace Valerie to represent employees. Today, on behalf of the Board of Directors, I'm very pleased to present the company's 2021 compensation policies and the 2022 compensation policy for the Chairman and Chief Executive Officer. As I wrote to you in our letter published in our universal reference document, the role of the Compensation Committee is to examine and make recommendations to the Board of Directors concerning the compensation policies for senior executives. The implementation of the compensation policies for the Executive Committee includes the evaluation of performance for the Executive Director. At the same time, we must make sure we maintain a direct link between business performance and executive compensation. Our Compensation Committee is committed to seeking and taking feedback from the shareholders into account in the definition and implementation of the compensation systems for the company's senior executives. This year, the Compensation Committee met 3 times and formulated a number of recommendations to the Board of Directors. Following the outcome of the vote on Resolution 13, at the shareholders' meeting on May 28, 2021, the Compensation Committee met to analyze in detail the proposed changes to the compensation policy for the new term of office of the Executive Director giving significant consideration to the comments of the shareholders and the proxy advisers. The Board of Directors thus decided to implement the decisions voted at the shareholders meeting and wish to reiterate that the proposed changes to the compensation policy were intended to ensure that it reflects and rewards the achievement of the target set, encourages overperformance and is competitive with the panel of companies of comparable size. The key decision-making parameters considered were both fairness in terms of competitive position while also rewarding performance, while ensuring the compensation policy for the management is aligned with the interest of shareholders. The Board of Directors considered that Mr. Patrick Pouyanné is recognized as a significant leader and innovator within the industry and has demonstrated his capacity to implement the substantial and successful changes required for the company to ensure its long-term success. TotalEnergies is now considered by the market to be 1 of the 4 runners in the quest to deliver carbon neutrality through the implementation of a profound transformation of its business models. The targeted change is both significant and will be delivered within a relatively short time frame. The Chairman and Chief Executive Officer proposed a bold strategy to the Board of Directors with very ambitious change targets. The implementation of this new strategy, supported by the Board of Directors has been made possible by the solid foundations contained within a flexible organization model put in place over the last 5 years. There is no doubt the progress the executive has made in positioning TotalEnergies for long-term transformation and business success. Regarding the compensation of your directors, 2 resolutions are submitted for your approval. Resolution #10, on the left-hand side of the screen, concerns the approval of information relating to the 2021 compensation of directors. This amount is set for each director on the basis of his or her actual attendance at each Board or Committee meeting. The maximum annual compensation package was set by the shareholders meeting last year at EUR 1.75 million. In accordance with the rules of attendance, the amount of the 2021 compensation was therefore EUR 1.745 million. The resolution #11 on the right-hand side of the screen submits for your approval the 2022 compensation policy for the directors. This policy set by your Board in July 2017 remains unchanged with a maximum annual amount of EUR 1.75 million. Now let's turn to the 2021 compensation of your Chairman and Chief Executive Officer, which is composed by a fixed compensation, a variable compensation and the performance shares. In 2021, the fixed compensation paid to Mr. Patrick Pouyanné amounted to EUR 1.4 million as noted during the last shareholders' meeting. The variable compensation which the payment is conditional to the approval of resolution #12, amounted to EUR 2.506 million. That is 179% of the annual fixed compensation out of the maximum of 180% awarded after strict compliance of the results of the economic parameters and the evaluation of the CEO's personal contribution. Lastly, 90,000 performance shares have been granted to the CEO subject to performance conditions. The final numbers of shares granted will depend on TotalEnergies' share performance and the annual change in net cash flow per share compared to its main competitors. The organic breakeven point before dividends and the evolution in greenhouse gas emissions from TotalEnergies' operated oil and gas facilities. The final allocation of these shares will only take place in 3 years' time. I will now conclude this presentation with the 2022 compensation policy for the Chairman and Chief Executive Officer, which is set out in Resolution #13 submitted for your approval. To make sure that our compensation policy is competitive, Mr. Patrick Pouyanné compensation was reviewed like every year, and compared with that of its competitors and with the national market. The results of this detailed analysis, which is included further in the reference document, enabled the Board to reinforce its belief that the structure and components of the proposed policy for 2022 were at the appropriate level. To this end, the Board of Directors took into consideration the size, scope and complexity of the company's global operation in its current and projected configurations. Second, the extent of changes needed in the company's strategy as well as any changes that will be needed to improve its competitive position that market developments, in general, and trends in executive compensation. And also, the increasing importance of ESG challenges for the entire financial community and how the corporation needs to take into account each of these issues in its compensation structure for its executives; also, shareholders' expectations and the need to obtain their support for the proposed changes. With regard to the proposed compensation policy for the fiscal year 2022, the Compensation Committee has therefore recommended to the Board of Directors it maintains the compensation policy for the Chairman and Chief Executive Officer, as approved by the shareholders' meeting on May 28, 2021. On this basis, the main proposed changes were: a change in base salary from EUR 1.4 million to EUR 1.55 million, effective as from January 1, 2022, and for the whole duration of the term of office. It should be recalled that this increased decision was taken by the Board of Directors taking into account that the base salary had not been reviewed since 2016. This rise, therefore, corresponds to an annual increase since 2016 of approximately 1.7% to be compared with the average pay rise budget for employees in the Socle Social Commun scope, which is approximately 15,000 employees in France, of 2.38% per year over the same period. In addition, the Mercer benchmark showed that the positioning of the base salary at EUR 1.4 million and of the total cash compensation was slightly below the median in comparison with the panel of 24 international energy companies. A change in the variable compensation structure allowing for overperformance according to quantitative financial criteria was also included. The purpose of this change is to encourage the Chairman and Chief Executive Officer to exceed these financial targets. However, taking into account feedback from shareholders, the Compensation Committee recommended to the Board of Directors to update some of the limits of the financial targets to ensure that they were ambitious and even overstretch for overperformance. As a reminder, the share of financial criteria remains nonetheless capped at 110% of the base salary. The variable compensation can reach a maximum of 180% of the fixed compensation, 140% based on quantifiable targets and 40% based on qualitative criteria. It should be noted that the so-called ESG criteria, such as the steering of the strategy towards carbon neutrality, the profitable growth in renewables and electricity, and the CSR performance accounts for 39% of the CEO's variable compensation. An increase in the number of performance shares attributable to the Chairman and CEO in fiscal years 2021, 2022 and 2023 to 90,000, 100,000 and 110,000 shares, respectively, to be better aligned with market levels and to better reconcile the interest of the Chairman and CEO and of the company's shareholders. In the same spirit, the Board of Directors, on the recommendation of the Compensation Committee, has decided, starting with the 2021 long-term compensation plan, to require the Chairman and Chief Executive Officer to hold 50% of the shares that will be definitively granted to him at the end of the vesting period in registered form until the end of his term of office. This obligation is more restrictive than the one that existed in the company previously and those observed within CAC 40. In addition to these elements and following a request from shareholders for greater transparency, the Board of Directors has decided to strengthen its compensation policy by providing a framework for the granting of golden hellos and by clarifying the rules for the treatment of performance shares upon the departure of the beneficiary. On behalf of the Compensation Committee, I would like to thank you for your feedback and support, which we will continue to seek in our regular reviews and improvements of our compensation policies to make sure that they are aligned with the interest of our shareholders and fully meet all legal requirements. Thank you for your attention.

Ladies and gentlemen, dear shareholders, hello. It is with pleasure that I meet with you after 2 years during which we've had to held our general shareholders remotely because of the COVID. I want to thank the shareholders, who wanted to join us to take part in this general shareholders' meeting and who were able to do it because we hold this moment of dialogue dear because it's a strong moment. And once again, I want to apologize to those who were not able to join us. But I know that because this shareholders meeting is stream live, they can benefit from the various comments and presentations that we make to shed a light on the strategy of the company. And I want to welcome everybody who is following this live on our website. This year, we wanted to capitalize during the best -- on the best practices set up during COVID to give you the opportunity to share your expectations and questions before our meeting by putting online a platform on which that you can raise your question. We're going to be able to use them. Your Secretary, Jean-Pierre Sbraire, is going to relay the questions that were asked on the platform, and I will gladly take these questions. On this opportunity, I also want to salute the 1,300,000 individual shareholders that are not employees that we have in Europe and the U.S. in 2021. They've increased by 150,000, representing 13.5% of the capital. So with the employees, it's about 20% of the capital of TotalEnergies that is held by personnel -- by individual people. So as Jean-Pierre Sbraire has said, 2021 has shown a strong rebound of global economy, which has translated by a strong rebound in the demand for oil and gas. This has triggered an increase in price to exceptional levels concerning gas starting with the summer of 2021. We entered during 2021 with a lot of uncertainty linked to the health crisis, but we benefited from a favorable environment. And we were able to make the best of it with great results because of the availability of all of our businesses. And once again, I want to thank all of the employees of TotalEnergies, who were mobilized everywhere throughout the world during this particular period of the COVID crisis. With their remarkable efforts and their daily commitments, we were able to ensure the continuity of our business to serve our clients by providing them essential energy -- products that they needed. The richness of a company like yours can be measured by the quality of the employees that compose it and that are its sole. And I'm deeply conscious of this. As we started 2022 with a certain degree of serenity and as normal life on the health basis was being confirmed, a new major crisis has unfortunately become a reality. Dear shareholders, in this day of General Shareholders' Meeting, I would like to first come back to the egregious events that are happening in Ukraine and reaffirm our strong condemnation of the military aggression of Russia against Ukraine, which has tragic consequences for the Ukrainian populations and threatens peace in Europe. Given the business that we have developed over 15 years in Russia, we have publicly announced responsible action principles that we use to manage these activities in relation with Russia. I want to remind you that we have no direct operational businesses in Russia. We are shareholders of Russian projects, of Russian societies in which we have invested since 2011 through the Novatek private company, Yamal LNG and Arctic LNG 2 projects. And we are managing contract to market and liquefied natural gas to Europe or to Asia. Our first responsible action principle is to strictly respect European, international, current and future sanctions, whatever the consequences for the management of these assets in Russia. These sanctions define the framework through which European authorities are setting their relationship with Russia in the energy sector. We are an actor of energy security in Europe, and we need to continue to this. But we need to be able to draw all the consequences, whatever they are, including discontinuation of our business with Russia if European authorities want to no longer use Russian energies. This is why we've started to progressively suspend our business in Russia while ensuring the safety of our employees, but by pulling the support that we contributed to Russian companies through our secondees. In the same way, given the difficulty to have a supply of certain components, we have decided to stop our business in bitumen at the end of April in Russia, and lubricants and batteries that will stop in July. Our second principle is to no longer contribute capital for developing projects in Russia because we no longer consider that Russia is a stable framework for long-term investment. This is why we've decided to provision in our accounts and reserves the LNG Arctic 2 (sic) [ Arctic LNG 2 ] projects given the uncertainties that we have on the technological and financial sanctions on the capacity to carry out this project. This represented a loss of $4.1 billion for the first quarter 2022. Our third principle is not to take decisions which, would have an effect to inverse the objective of sanctions and -- against Russia and now to transfer value to Russian interests by pulling out of our assets precipitously. The current context of European sanctions and Russian loss to control foreign investment in Russia would provide TotalEnergies to find a non-Russian [ buyer ] to take its minority shares in Russia. Abandoning these shares would contribute to invest Russian investors. This is an obvious contradiction with the objective of the sanctions. Furthermore, abandoning these shares in which TotalEnergies is a minority shareholder would have 0 impact on the functioning of the company's concern and on their revenue because they are managed autonomously with their own employees. However, if we need to continue to ensure the security of the energy supply of the European continent in gas by supplying it with gas from the plant of Yamal Energy within the framework of long-term contract that we need to continue to honor, while European governments feel that Russian gas is still necessary, we have taken the decision to no longer sign or renew contracts to purchase oil and oil products from Russia, ending them at the end of 2022, which is when our contracts come to term. We are capable to ensure the supply of our refineries and our service stations in Europe without using Russian oil or diesel. Dear shareholders, I want to underscore how much your company was mobilized to support Ukraine and Ukrainians. From the first 2 hours of the conflict, the company said that it would support the population and the refugees in Ukraine, its employees, but not just -- but also the authorities in Ukraine by providing them with some fuel. To be as close as we could to the needs of the population, we have contributed financial and logistic means to several aid program and to associations for an amount of EUR 10 million. Here, I want to recognize our employees who throughout the world have made financial donations to support Ukraine and refugees. These donations were matched by your company to contribute to the solidarity. And if shareholders have also made donations, please let us know because we will match them euro for euro. This context of the geopolitical crisis has translated by a lot of attention on the oil and gas market. Prices were high, as I said, before the war. And they rose to exceptional levels since the war, given the uncertainties, but also given the real impact of sanctions on the production of oil and oil products in Russia. And this has an impact on the spending power of our clients. This is why TotalEnergies has decided to commit to its clients in France to limit the increase of the cost of energy in their daily lives. Because of the increase of price of gas, we decided in February to give a gas check of EUR 100 to our clients, who were undergoing energy deficiency. We also want to support the spending power of French citizens. And that's why we've announced in February 10 centimes per liter of rebate in service stations, first in rural areas, then throughout France starting in April. TotalEnergies is going to continue supporting its clients in France. We will continue this 10 centime per liter rebate in 123 service stations of TotalEnergies located on French motorways, where we welcome [ 17 ] million clients during July and August, which are the summer vacation during which the French particularly use their vehicles. I hope our competitors will follow us in our will to help the French. The prices are shown at the entry of the motorways, and the French people will be able to see the difference. Dear shareholders, these actions are important in our eyes because they help our consumers, but they also demonstrate that solidarity matters to us. We create value, a lot of value. But we share it, we share with our clients. But also, we share it with our employees. Our French employees of the common social core have had wage measures with an increase of their wages by 3.5%. And they've also had an energy check for EUR 150. Our French employees also have more than EUR 9,000 of profit sharing, an increase of EUR 3,300, which is a 56% increase compared to 2021. This is the employee dividend, we call it the participation. All of the employees throughout the world have received a bonus of $500 at the end of '21 and an energy check of $100 in March of 2022. Of course, we're tracking the evolution of inflation. And the next wage measure will take this increase into account if it helps. I also want to say that the countries also have benefited from the increase of these prices, because in 2021, 30% of the added value was paid to the various countries in which Total operates. We have paid more -- an increase of $10 billion compared to 2020. Sharing value also concerns you as shareholders. In 2021, you've received 20% of the added value of the company, an amount equivalent to that paid to the employees. You have noted that your Board, as Jean-Pierre Sbraire reminded you, has decreased -- an increase of 5% of the first payment of the dividend in 2022 to bring it to 69 centimes per action. I want to remind you that the dividend of TotalEnergies has never gone down since 1982, even as your company went through major crises like that of COVID. It is a strong trust in the company from your Board to maintain the payments of the dividend. But in this period of the transformation of the company, it is key in our eyes to keep and reinforce the trust of our shareholders in our company, because the context of high prices allows us to have excellent results and cash flow as Jean-Pierre Sbraire presented with the financials of the first quarter. This allows us to accelerate our strategy of transformation on which I would like to come back in the second part of my speech. Your Board wanted to reaffirm when it published the results of the first quarter that there was a priority to allocate the additional cash flow to accelerate this transformation. The operation that we've announced this morning to acquire 50% of the U.S. company, Clearway, which is one of the 5 top players of -- in renewables in the United States for an amount of $2.4 billion does illustrate this acceleration. As you know, your company has committed itself to a strategy of transformation, which was incarnated in 2021 through our change of name. Total became TotalEnergies to meet the dual challenge of sustainable development and transition energy to carbon neutrality by 2050 together with society. The transformation of TotalEnergies is going to continue to speed up because the decade between [ 2020 ] and 2030 is a decade of transformation and the decade that is going to establish TotalEnergies as a major player of decarbonized energy. On the one hand, an integrated utility from the production of renewable energy to distribution through storage and trading, with the ambition that this new electricity business represent 15% to 20% of the company by 2030. And on the other hand, a producer and distributor of decarbonized molecules, such as biofuels, biogas, biomethane, hydrogen, e-fuels, bioplastics, that the transition -- the energy transition needs. Current events in Europe reminds everybody the triangle that is the base of the demand for energy. Energy needs to be reliable, safe and available. It is what we call the safety of supply. Energy needs to be affordable and cheap because if it is expensive, this essential need impacts the spending power of the client. It must be sustainable and compatible with the objectives of the Paris Accord to maintain the increase in temperature well below 2 degrees. This is the mission of TotalEnergies, to provide everybody an available, affordable and sustainable energy. For the upcoming debate -- decade, the growth of TotalEnergies relies predominantly on 2 energies: renewable electricity on the one hand and LNG on the other. You will note that this strategy supports the policy that was laid out by Europe to ensure its energy security, to ensure the supply of Europe and LNG, to replace Russian gas by this and to accelerate the production of renewable energy and of decarbonized molecules like hydrogen, on the other hand. With this perspective, I want to underscore also the strong growth of the TotalEnergies in the U.S. over the past 5 years, relying on these 2 energies at the heart of our transformation, LNG and renewable electricity. This is a perfect illustration of the transformation strategy that we're leading. In 2021, we became the greatest exporter of LNG in the U.S. with the plant of Cameron LNG, which is now used at full capacity, but also, the purchases that we've done with Freeport LNG and the plant in Chenya. We have really benefited from the strong increase of LNG on a global scale, first in Asia in the summer of 2021, then in Europe. And during the winter of 2022, we were able to supply Europe by using the regasification capacities that we have in Europe at a maximum, representing 15% of European capacity. So we really are using here the acquisition that we've made of the LNG portfolio from ENGIE in 2018, making TotalEnergies the second private player of the global LNG market because we're managing about 10% of this global market. We've also announced in the beginning of 2022 some new projects to grow in U.S. LNG. We've also decided with our partners to accelerate the project to extend Cameron LNG. And the final investment decision will take place at the end of 2023. And it will also be having a program -- a project to capture and store carbon alongside it. We also have made progress on our projects in Mexico with the projects, Costa Azul and Vista Pacifico. Of course, this is possible if methane emissions are brought to a strict minimum. This is why in our sustainability and climate report that the Board have presented to you, we have announced that our ambition was to get to 0 methane. And we were planning to reduce our methane emissions by 80% between now and 2030, after already reducing them by 50% between 2010 and 2020. It is only under this condition that we'll be able to call LNG an energy of transition because it allows the reliability of electricity production and come as a substitute for coal, which emits CO2. The second pillar of our growth strategy in the U.S. are renewables. We've made our first steps in renewable farms in 2021 through 2 operations, representing 4 gigawatts of solar, predominantly in Texas. At the beginning of this year, we're changing dimension, because during the first 5 months of the year, we've announced several operations, bringing our portfolio to more than 25 gigawatts by 2030. The objective being that the U.S. would represent 25% of our ambition of 100 gigawatts in renewables by then. Growth in marine offshore wind with 2 concessions obtained off the coast of New York, New Jersey and in North Carolina for 4 gigawatts. Growth in solar with the acquisition of Core Solar and the industrial and commercial business of SunPower for an additional 4 gigawatts, and a major growth with the Clearway operation, which represents 15 gigawatts in wind, solar and storage. Our transformation strategy, I can say, comes with a remodeling of the geopolitics of our portfolio in order to reassure our shareholders, less Russia, more U.S. As far as oil is concerned, our strategy is to adapt ourselves to anticipating a decrease of demand by 2030, especially in Europe, with the increase of decarbonized mobility, which is to say electric vehicles. Concretely, we feel that the sale of our oil products will decrease by 30% over the next 10 years. And therefore, the Scope 3 for oil of the company will also decrease by 30%. According to our commitments, we limit our new investments to oil projects with low cost and low emissions. And we're pulling out from mature assets that are not strategic, with high costs and emissions. To meet this ambitious objectives for this company are strong commitments for TotalEnergies. It is a commitment of financial performance, of a fair share of the value created, but also transparency with our shareholders. And that's the third part of what I had to share with you. Because your company sometimes works in countries with a sensitive political context, we want to be referenced as a responsible operator and employer. For this, we rely on action principles that are at the core of our behavior and our code of conduct, which are safety, but also respecting others and transparency, as we commit to society. These principles apply to all of our operations throughout the world. Respecting others is a value at the heart. And respecting others also is respecting human right. And this is something that is a collective requirement for us -- for all of us. Your company applies the best practices that are based on the directive principle of the United Nations pertaining to human rights. We are deploying action plans that are adapted to prevent risks that are identified and remedy to potential impact of our activities. In order to make progress and to support as we collaborate with external experts, we also work with government, local communities and NGOs. This dialogue allows us to have concrete operations in the field to prevent, act, change our approach and positions in complicated environment. It was the case in Myanmar. On the 21st of January 2022, your company announced its decision of pulling out from Myanmar. This decision was taken without any sanctions published by international authorities. But because of the context that kept degrading in terms of human right and in terms of the rule of law, we felt that the situation in this country did not allow us to contribute positively in a sufficient way. And so we have decided that we would start pulling out from Myanmar without any financial counterpart. Since we announced that we would pull out, your company has been taken adequate measures to make sure that it was pulling out responsibly vis-a-vis its stakeholders, especially its employees, as well as the local communities that we had been supporting for a long time. This pullout will be full by the end of July, according to the modalities of -- in the contract of concession that we have with Myanmar. We have enough time to make sure that we can pull out responsibly and in organized fashion. In Myanmar, like in all of the other countries where we operate, we want to listen to our partners and local players. Transparency is a rule of contact for TotalEnergies in its commitment to society whatever the issue. And it is part of our will to want to promote a fair transition. The quality and the sustainability of our relationship with stakeholders in the field is key. We want to work with local populations. And our projects are developed to meet the needs of a territory of a country and to contribute to the well-being of our populations. I wanted to mention our projects in Uganda and Tanzania that are regularly criticized by NGOs. These are major industrial projects for these 2 countries. The announcement in February 22 of launching this development is a part of our commitments that is exemplary in terms of sustainability. It is a oil project with a low carbon intensity, creating value for the countries and local community and a net gain in terms of biodiversity. They are part of a very sensitive environmental and societal context. We are fully aware of this, and we take this into consideration. As I said last year, our commitment is to apply the best international standards and to be transparent as to all of the actions that we're implementing. Designing these projects, we wanted to particularly focus on informing and having a dialogue with all of the stakeholders. More than 70,000 people were interviewed during the environmental and societal impact studies and more than 20,000 meetings were organized with the populations concern and the organization from civil society. We don't want to hide anything. Quite the contrary, we've communicated with civil society all of the reports and -- that we've carried out. And we published these on our website. And I invite you to read them, to judge the way in which we operate in Uganda and Tanzania. And yes, I recognize we still have progress to make. Nobody is perfect, and especially clearly in our way to explain these projects in the way in which we integrate these environmental and societal things in these projects. But our objective is clear, to develop this natural resource, in the respect of our best international standards, our code of conducts and our value. Dear shareholders, it is within this framework of transparency that your Board have committed to talk about its actions in terms of the climate. Last year, the Board wanted to consult you on the ambition of the society in terms of sustainability and energy transition to carbon neutrality as well as on the objectives defined by 2030. With your vote, you had widely supported this innovative change as well as the strategy of transformation of TotalEnergies. The Board had committed to report to you every year about the progress made on our road map. The Board has also published a report in March called Sustainability and Climate Progress report 2022. Following this, the Board has decided to submit this report to a consultative vote to allow you to express your opinion on the ambitions of the company in these aspects as well as to the additional commitments that we've taken for this new report. Like your Board said last year, this consultation meets a lot of expectations and contributes to the dialogue between the company and its shareholders, but in a specific competency of the Board. The Board is fully on board to set up the strategic orientation of the company, but it also wants the opinion of its shareholders. This report on which you will have to vote meets a simple objective, which is to demonstrate how our ambition is translated in the implementation of our strategy, in our investment decision, but also to share what we did in 2021, which are milestones and proofs on our path of transformation to meet our 2030 objective and our ambition of being carbon neutral by 2050 together with society. This report is also an opportunity to be more educational and transparent on our climate objectives, on our progress, on the relevance of our objective, and our capacity to meet them and exceed them, and show our stakeholders that we're already on the right path. Because, as we've committed, we are reviewing every year with your Board the relevance of our ambition, the adequacy of our strategy and our ambition to reduce GHG emissions. We analyze them when we look at the progress of international and national policies, scenarios in terms of decarbonization trajectory, advances in terms of low-carbon technologies and other evolutions in -- of society in terms of energy transition. This is why we submitted it to your vote in 2021. I think that this is new. It's new amongst the oil and gas majors. We are submitting our Vision 2050 of TotalEnergies net 0 together with society producing for half renewable energy for quarter new molecules that are decarbonized coming from biomass or renewable energy and for quarter hydrocarbons that will have residual emissions captured, recycled or compensated. This is not a mirage, and this is not greenwashing. It is anchored in quantifiable objectives to reduce our greenhouse gas emissions. I won't come back to our objectives in terms of reducing methane because I've mentioned them already. We've made significant progress on our objectives. In 2021, we've reduced the emissions of our operated facilities by 20% compared to 2015. In 2021, we sold our customer an energy mix with a carbon intensity reduced by 10% since 2015. And in 6 years, it's significant, and the proof of our commitment and our determination to fight against climate change. Some feel that we don't go fast enough. To prepare this general shareholders' meeting, we have received 2 requests to -- for resolutions to be placed on the agenda from shareholder groups who feel that we should add to our climate objectives. So we, of course, welcomed the challenge, and we've looked at it with great attention. The first one aimed to have additional information on the climate to give the investors more possibility for the investors to evaluate the strategy of energy transition of their company. Following discussion with the shareholders as well as with the representative of the investor coalition, Climate Action 100+, we have committed to publish the additional information in our next sustainability and climate annual report 2023 and to submit this report to a consultative vote in the general shareholders meeting every year, such as we're doing this year. Following these dialogues, this group of shareholders was satisfied and pulled out its resolution. And for me, it's an example of a successful shareholder dialogue. Your Board received a second request from a group of investor gathered around the MN Investor, who was supposed to be present today. After looking at this proposal cautiously, your Board decided to not put it on the agenda, because beyond a formal issue with regards to its filing, it is against the legal rules of splitting of the competencies between the various bodies of the company. This resolution wanted to modify the bylaws of the company and it encroached on the competency of the Board to set the strategy of the company. We had informed the MN investor of the specificity of the French right on the respective competencies of the Board and the General Shareholders Meeting. And we have sent him a letter detailing this. This is why we did not keep this. The definition of the strategy of the company is the prerogative of the Board. It exerts this competency in terms of -- or the orientations of the company as to energy transition. We listen, we debate, we look at everybody's opinion. And once again, this is the reason behind this innovative vote of last year and our decision to renew it this year and for the upcoming years. This is why even if for legal reason, we decided to not include this in the resolution. We've encouraged them to ask a question during the shareholders' meeting to continue this dialogue together. Ladies and gentlemen, dear shareholders, as a conclusion, I want to say that TotalEnergies has really measured the challenges of the upcoming years. We have committed to supply energy to an ever-increasing population while limiting the impact of our activities on climate warming. For this, we have started to transform our industrial model. This transformation is going to continue to speed up over the next several years to meet our objectives: more energy, less emissions, always more sustainable, always more profitable for all of our stakeholders. Thank you for your attention.

Let's now move on to the Q&A session. There are written question. 9 shareholders ask written questions in the framework of the regulations. The forum for responsible investment to [indiscernible], Mr. Ali from Greenpeace France; Mr. [indiscernible] Reclaim France. These questions provided to -- will be consulted on the website, energy -- totalenergies.com under the General Shareholder Meeting, written questions. In order to open the debate, I'd like to provide these. We are not going to read the questions -- these written questions. There are -- for some, there are 2 or 3 questions. But for others, there are 50 questions. So you will understand that if I took all the time necessary to do so, it would be impossible. I'd like to mention that those who provided questions outside of the regulatory framework will receive answers in the second time. I will open up to questions now. An exchange will be held during this assembly. And the Financial Director and reference will be here to answer to them, the members of the COMEX as well to answer to the shareholders. We will spend the time necessary. Given the special situation, because only a limited number of shareholders who are able to enter the room, I don't know if some would like to ask questions. Of course, I will give them the floor as a priority. If -- we will also be able to use the Internet platform. And for those shareholders who weren't able to come into the room, but they have sent questions to us anyhow, and what I suggest is that the Secretary will be their interpreter in order for me to be able to provide answers. Let's see, first of all, if we have people in the room with questions. Shareholders, the lady here, I will listen to you. You have the honor to begin. Let me just grab my glass of water. Thank you, Marie-Christine. She's making sure I stay in good health. Very well. Please go ahead.

Hello. I am here to talk about the journalists -- maintain of your position in Russia. Doesn't it represent a risk for your reputation, for the group's reputation?

I believe that I have clearly expressed myself on this topic. When we say maintaining our presence, I'd like to say we have no present. We are shareholders, and this is very different. We have no direct activity in Russia. As I explained, we have contracts, long-term contracts, the LNG for Yamal that I [ risk for $50 million ], which is outside of sanctions. We didn't want to claim. This contract also plans that if sanctions are decided, it will be stopped. And this is what we will do. We are steering this position towards Russia. And with the principles I enumerated, it is very clear, for the good reason I mentioned, is that in oil and gas, in energies, in general, we do work on the long term and we will need stability there. On the current activities, we are taking measures successively to stop our activity. But by considering also the mission that is ours, to ensure the energy security in Europe as the governments in Europe call us to. The question you ask is a very legitimate question. It is the purpose for dialogue, it's important. And I think Marie-Christine had the occasion during her interviews with shareholders to mention the topic as well. And I can tell you that the great majority of shareholders we met with, not all, understand the positions we adopted because the first mission is to protect the value by assessing the risk. It is -- I'll be honest with you. We saw an impact of Russia on the share of TotalEnergies. And for 2 months now, because I think we've explained our position, only one regret, it wasn't obvious. Maybe we communicated too slowly about our position, but this was the object of important discussions with the Board. And as I said before, making decisions when hurrying and when there's too much emotion, this could have led us to regret it later. So we needed to think about it carefully. These are not simple positions. And maybe Marie-Christine will add information about reputation in Russia.

Yes. I was very strongly struck that shareholders listen carefully to the explanations of our CEO. And they found them really balanced and reasonable to master the paradoxical and contradictory elements in the situation. So I perceived something very positive and supportive to the position of TotalEnergies.

As I said in my speech, if sanctions are imposed, we will leave. Very well. Do we have any other questions in the room? No more questions. So now I suggest that Jean-Pierre, as our Secretary, will read the questions we received from MN.

The first question is the following the Board of TotalEnergies decided not to write for the next assembly the proposals suggested by MN. Why was such a decision made? In 2021, there is no significant change provided nor for the regulatory? If the Board doesn't enable by a -- with a constraining vote to work on climate, will it be possible to add a consultative one with the investors? In the report on climate, TotalEnergies, you provide an analysis of the 1.5 degree, IEA analysis, will you not use it to define your new strategy in the future and your objectives to reduce carbon emission? Why aren't you using the IEA scenario for your objectives to reduce your carbon emissions? As investors and clients, we engage. We committed to align our portfolios and the subline companies with the trajectory of the 1.5 degrees. TotalEnergies doesn't align its objective to reduce the carbon emissions and its strategy on this trajectory. When will TotalEnergies align its objectives and strategy to reduce the emissions to follow the Paris agreement? And could you tell us what is your agenda for this -- the time line?

3 questions. The first is a legal question. Why has the Board not decided to add this resolution? It's a resolution that was rejected, it's -- 85% in 2020. It also aimed at modifying the statutes of the company. I'd like to mention that there's no obligation. And at the time, the Board had mentioned that in its refusal to agree for this resolution, that this resolution was problematic due to the questions of competencies. Its legal aspects were underlined by the Board. In 2020, the decision at the time to submit the proposal of resolution was explained by the will to supply a framework for dialogue, the dialogue with shareholders about climate. Since then, there were several initiatives that were provided and made. There was clearly formal license. The Board itself proposed that to be consultative voting, a consultation that I reminded you about, you know it well, and took the initiative to offer a second. There is, as I mentioned in my speech, the desire of the Board to fully use its confidence in terms of strategy and for the energy transition and the climate objectives of the company. And from this, it was legitimate -- it seem legitimate to hold to the legal framework within which we exert the competencies and not to add this resolution. I'd like to say that this resolution was a real problem for our -- and risk for our company because it was aiming at inscribing objectives which, in fact, I'd like to remind you, the Paris agreement are imposed to states. They do not apply directly to companies. And the transposition of the Paris agreement in the statutes of the company opens up, obviously, to a legal field of, where possible compensation that is huge and dangerous. I'd like to say it clearly at the same time for the companies and shareholders. Therefore, there were legal reasons, but there are also deeper reasons. The second question consists, if I remember well, it is about the trajectory of the 1.5 degrees. Why do we not take into account the IEA scenario? The report, you have a full page in which we have explained. And I believe that not many companies have done this. We have said how we assess the [indiscernible] said that the Board decided to listen to the CEO of the IEA during a session to find the information and to understand the approach. As we explained, this scenario is designed from -- with the arrival point. In 2050, to be net 0, we totally, fully agree. We have done it. And in the report, we submitted. When we described TotalEnergies net 0 by 2050, we are -- we added our energy mix with respect to what they imagine as a net 0 world of energy by 2050. So for the point of arrival, we totally agree. And the way in which we assess the quality of our report. And we took into consideration the price hypothesis that the IEA suggest $25 per barrel, because with net 0 at 2050, we would have too much oil available compared to the demand. And we decided, therefore, as we are explaining, that the test -- the resilience test -- the impairment test of our assets that we carry out are done with price trajectories that can and take into account the assumptions of the IEA for 2040. We have studied it. And where we disagree, and I -- it's difficult for me to understand very honestly, that why the financial community considers that this net 0 community of the IEA becomes a Bible. To my knowledge, the way to achieve this net 0 will be result of the offer policy, our ability to accelerate together the design of the decarbonated energy, but also the ability we will have to help evolve the demand of our consumers. There's offer on one side and the consumers on the other, but offers for mobility. And the way in which planes, trains, trucks and ships use energy, it is not us that decide upon it, but the drivers of these engines they decide it. So where we step aside the analysis, we -- there's a arrival point. And if we look at the situation today and the arrival point, it's not linear. Life is not linear. And demand will not be either. The demand will not decrease as the IEA scenario says by 30% in the next 10 years, the demand in oil and gas. That is not true. The demand, I can tell you, is stable, and it even increased. And I don't want to confront IEA with the contradictions. But for the moment, things are still increasing. So you need to look at this. And if we followed the IEA trajectory, if we reduced the offer by 30% in oil and gas, the prices won't be at $25 -- $300, $500. Let's be responsible. The arrival point we -- the purpose, we accept. But the trajectory, no. And we will not take it into consideration because I'd like to remind you of TotalEnergies, we are part of TotalEnergies, a company, we have the ambition to be net 0 in 2050. The company wants to be net 0. And I described how we will do it. The world will -- will it be at 1.5 degree? I do not know. This is a different subject. And today, there are investors who say, and the question is an interesting one, we have decided that we wanted our portfolio of investments follow this trajectory, very well. But we want all of the companies to do so. Let's leave all of the companies do if they want, and then up to the investors to judge if what we are doing corresponds to the clients' expectations to the portfolio. And this is why we accepted this famous engagement or commitment of the first resolution to give our investors all of the elements they need. They say we will need more elements. The report, next year, we'll provide you with the complementary element. And it's very legitimate. Of course, I'll say let's be responsible. If you, our shareholder of TotalEnergies, is that you support the strategy. If you considered it's not good for you, then everybody is free not to keep these shares. And one of the investors wrote to us, it happened, he said, if we don't renounce petro -- oil exploration, he would retrieve from the shareholding. But I accept this position. And I'd like him to accept ours.

To align our strategy...

I think I've just explained it once again. One point, the question, how are your objectives for the 2050 horizons? How are they relevant? We carried out work this year. It's very original. We solicited 2 external experts. The Carbon 4 company, very well known, and the Energy Center of the University of Colombia, to try to assess if our objective for Scope 1 plus 2, minus 40%, was relevant compared to the trajectory that the countries who commits to net 0 themselves -- gave themselves for Scope 1 and 2. A continent like Europe, everybody says it's net 0, only talks about the Scope 1 and 2. They only talk about European emissions. They do not talk about emissions that are imported, and I'll come back to that. Which -- so net 0 of Europe is the preliminary to Scope 1 and 2 for TotalEnergies. This work has been carried out. And the experts said that they assess that net 0 countries and only by 2050 had a decrease by between minus 39 or 40. That's where we stand, and I think that's relevant. So if we're asked the question, what about your Scope 3? I will be very clear for that. Europe for Scope 3, that would be to take into account all the important emissions. And today, European consumers import a lot of products coming from China, Asia, other countries. These emissions, we do not count on the European level in our ambition. And I'll be clear. If I -- the only way I have independently from the shares -- the actions that we carried out and the commitment for the reductions of oil for Scope 3, we want to anticipate an evolution of the decrease in demand in Europe. If we want to decrease Scope 3 by 40%, only one way to do it, to sell all of our networks of gas stations, but there will be a happy buyer. And people who still be there, they will come to the gas stations. But look at the results. The results will not be in TotalEnergies, but elsewhere. So this, by doing so, I'm not saying we're not responsible. We have a responsibility to act on demand. This means deploying networks of charging stations for people to have electric vehicles. It means supporting our clients. But I do not believe, and I'd like to find an expert who will say that the demand for oil and gas products will decrease by 30% in 10 years, I will bet anything.

Another question from DWS on the auditors. KPMG audit your company since 1998 and Ernst & Young since 2014. The Board recommends to renew the mandate of Ernst & Young and would like to replace KPMG by PwC. They consider the regular rotation of auditors as a reasonable measure to have a reliable, independent and critical evaluation. So what are your projects concerning the rotation of EY because they've been there for a long time?

Well, the answer is very simple. We have not renewed KPMG. So the Audit Committee, chaired by Maria van der Hoeven has done its work after many years. I agree with the comment that is made. KPMG had remained auditors for 24 years. So the rules did -- have changed. The position is quite simple. Ernst & Young, if approved by the general shareholders' meeting, will have a mandate of 6 years, will not be renewed after that. So the answer is very clear, we won't renew Ernst & Young after the 6 years of this mandate if you do approve this mandate today.

A new question on climate from Mr. Torben Maffait Hansen from PFA. TotalEnergies is one of the 3 oil and gas company that have a long-term objectives that are validated by a transition pass-through initiative on a benchmark of 1.5 degree. No other oil and gas company has had its short and medium-term ambitions validated. What are the obstacles that provide -- that prevent Total from reaching this intermediate goal recognized by a third-party? Well, I wanted to salute Mr.Hansen , who is an investor coming from Denmark. He came, but he was not able to get into the room, so he's asked Jean-Pierre to ask the question. In his question, there's an important information I have not highlighted until now. The initiative -- transition path initiative on which many investors rely to evaluate the trajectories, has recognized that TotalEnergies was one of the only 3 oil and gas companies to have a long-term ambition that is coherent with a 1.5-degree trajectory. This comforts the fact that this energy transition is going along the right path. There were other recent reports, including CVP climate, that had us in the top 3 in this matter. Our transformation strategy is recognized. I know that we're attacked, but strategy is recognized by the people who closely watch these issues. The question raised here is, is there today a way to validate intermediate objectives? There is none, because the oil and gas sector does not have today what we call the SBTI, the science-based target initiatives. The body in question did not pronounce himself on this, and I think they're struggling to do so. So the question is, can we get it done by third party. I'm open to this. I am going to describe what we've done with Carbon 4, and Colombia University, it was exactly the same approach. I would like to be able to reaffirm that the objective a 40% decrease on Scope 1 and 2 is compatible. So we are comforted. But if we're told it's not minus 40, but minus 45. No worries, will go look for minus 45. It is a dynamic. It's not an exact science. However, I want to remind everybody that in the IPCC report, in order to get to 1.5 degrees, there are 75 different tracks, not 1, 75. I don't know why we're told the 1 that is linear. I've never seen a linear world, trying to see since in 2015, if we're living in a linear world between COVID and the war in Ukraine, we live in a world of extreme volatility. There are 75 ways of getting there. But I'm taking the point. If I'm asked today, what are the most complex elements, I think that there are 2 in order to be able to accelerate. The first one is the evolution of demand. We need to act on this. We need public policies to act on this. It's clear. In terms of energy efficiency, we see the impact of public policies on Europe with no emissions regulation on OEMs, we would not have gone so far to -- and so fast to electric vehicles, we'll need this for transport of merchandise tomorrow. So we need the politicians to support us in this. We're going to look for ways to validate the fact that our trajectory for Scope 1 plus 2 is the right one. I've given my reservation earlier on Scope 3. Even if I have to say that Scope 3 doesn't depend just on us. It depends on everybody. And as I repeat, if the states don't consider scope 3, I really wonder how companies would get there and the scope 3 of the Fed Energies really depends on the customers of TotalEnergies and our capacity to influence them. Going back to 2 questions of Mr. Simon [indiscernible] on the Uganda and Tanzania [Indiscernible] first. When you envisage to start construction in Uganda. And second question what were the measures that currently placed [indiscernible] to make sure that we that there would be no loss in biodiversity on endangered species linked to the development of these project. First of all, this is a topic that I talk in my speech, but this is of course something that is much widely spread in the news. Regarding production, production is foreseen by beginning of 2021 because project was launched in 2022 and in this project, Uganda and Tanzania decided to work with the TotalEnergies. They decided it because it was another possible partner -- because we are worrying of the environmental norms and standards and the protection of biodiversity. So there was a choice by sovereign states. And we do also have an obligation vis-a-vis those states to accomplish the mission that was given to us. Some say this is a new oilfield. Indeed. But production will last 15 to 20 years. And this new oilfield is compatible with the investment criteria that we have where the net 0 scenario by 2050. And I find this trial quite surprising. When we know that it's -- and when we say that Tanzania and Uganda, we do not have a right to develop and use the natural resources when we as western countries estimates that too much carbon has been emitted and that they need to do without their natural resources. There would be much more coherent if we offer to compensate and offset all of the benefits that we can take from it. We are also aware of the pace of these projects, which is a land in projects. Of course, this is much more difficult to get in place than sea projects, manage-high prices because we cross territories that belong to people, so there is a lot of work that needs to be done, quite a few work of course that regards large number of people. And in my opinion, if you ask me it would be very interesting to ask immediately that this is something that we're going to see just in weeks to come, to go to those local population. See if as where it holds the vast majorities against this project. And in the reality this is not the case. The vast majority of people in Uganda are in favor of this project, and they will take benefit from this project, including when these people need to be relocated, building new houses. Of course, there is always a group of people who are against these kind of projects. And these are easy to focus on those people, but 99% of the people with whom we work on the field, in order to accompany them in the relocation, the [Indiscernible] relocation for the building of the pipes are in favor of what we're doing or what we're planning to do, and they will see as they see significant improvement of the living conditions. So I do invite everyone and we'll organize, this is really necessary. We will invite people to go see what's happening on field in Uganda. It is very easy to resize when you are in Paris back home. On biodiversity, and we are fully aware, we do want to ensure biodiversity. We are willing to have a net profit in terms of biodiversity, we are relying that for on experts. So first thing is to avoid. Then we need to reduce as much as we can. And if we cannot avoid or reduce as much as we can impact. We will try to compensate to offset them. This is what we mean by investing when the project had a footprint in the natural resource and natural parts of approximately 10% of concerned surface, but reduced it to 1%. We're now seeing 2 certain zones and areas of development. How are we going to achieve these net gain. Committing in the [Indiscernible] to increase the number of ventures. In those natural reserves in -- there's a lot of poaching. And there is a deficit, so there are effects to biodiversity every single day that happens in that [Indiscernible] because there is a deficit in all these states for the authorities to control this happening in natural reserves. What we're currently working on -- the authorities in Uganda is asking to increase the number of ventures like future [Indiscernible] of all these natural reserves. And the more people you have for biodiversity, the higher the chances to preserve the species. We are also working in very close collaboration with IUCN experts on the questions of [Indiscernible]. I met these experts, and we understood that contrary to the image and the idea that we have with [indiscernible], we realized that distractions happen everyday. The forests are being destroyed, and this has an impact on the population of chimpanzees. We are seeing with those experts how we can reconstruct those forest to make sure that chimpanzees can move around freely. Of course, we're not going to teach those experts. We need their knowledge to understand how we can act, and we have committed to restore more than 8,000 hectares of tropical forest and create ecological corridors. We are also working on a symbolic project to reinsert the black rhino in Uganda, which is not an easy project. These are the very practical levers that we put in place. We can, of course, point the finger at what's wrong, but we also need to look at what would contribute to. These projects in Uganda. We do have a lot of crisis and there is this [indiscernible] the profits, sorry, for [indiscernible]. But how can you ensure that the profits taken by the Ugandan states will go in the benefits of the population, the property of the population. So we want to look at what we can contribute to. We at TotalEnergies, we can produce and manufacture all in Uganda. But we can also be one of the major stakeholders to renewable energy in Uganda. We will identify the projects, and we can also bring something very concrete to the populations. For my colleagues, you know Africa better than I do, they're saying it would be good to have a [indiscernible] well, by village. If this is something we can do as TotalEnergies to make sure that these project benefits to the Ugandan population, I'm ready to connect -- that's a part of the profit that we make based on these projects, be reinvested in Uganda to fulfill the primary needs of the population. This is why I wanted to say on Uganda. A question from Mr. [Jean-Pico] on the Ukrainian prices. What measures did you take or will you take to replace the impact of crude in European refineries and [indiscernible] that has a major impact on the price of decisions for the city of France. This is a major topic. By end of 2022, we have already taken a major measure. We will not interview on the spot market. We will not buy Russian crude on the Russian market. We're not the only one. Others are also doing it, and it has major impact on the Russian production, which is struggling to find markets, including the Russian refining system, of course, Russian refineries did not have extensive -- infinite extensive -- extensible storage capacities and need to use their own installations. So the reason it will have impact on the market for the price of diesel, the price has significant increased in Europe, so no spots. We will stop as soon as possible the contracts that we have. We have reached [Indiscernible] contract in March. I can give you for yours for Leuna where you're using 900,000 tons of Russian crude. Leuna is a refinery in Eastern Germany, which is located on the Friendship pipeline that was built back at the time of the Soviet Union. All the refineries are built along these pipeline that was very ferrying to by Russian crews, 900,000 tons which is full capacity for October 2021. We were at 800 in February 2022, and we were at 550 in May 2022. So we went down from 900 to 550. And by December 2022, that will remain 430, if there is no additional session and 0 as of 2023. Where will crude come from? First, we have to find out the route. We have identified these other routes. Three of the pipes in that route [indiscernible] in Poland. TotalEnergies out of security and safety has built for years because we're already a bit careful having just [indiscernible] depending on one route. We have those capacities 700,000 tons going from Davos to Leuna. So we do have crude produced a bit [indiscernible] in the world to feed [indiscernible]. They will -- this will cost a little bit more than the Russian crude that you're currently discussing with the [indiscernible] because there is another refinery interest in Eastern Germany. And we're looking at that possibility to know whether we can find the 100,000 and 200,000 tons that we're still missing. this will be prioritized on the Northern sea. We do have a refinery in sector in Norway. In April 2022, we have provisions mainly more from the North sea. We can also users from Northern Africa, so this is for crude diesel. We, as TotalEnergies, we are imparting Russian diesel in France. You know that we do have a deficit and we were indeed importing diesel from Russia. We do have a refinery in Saudi Arabia, of which we have 37.5% and we do have an access to the products of this refinery. We want to bring the products of this refinery back to Europe in order to feed all the special services. We also have major trading teams at TotalEnergies that will be fully modernized to bring diesel to the old content. If we are asked to cover the whole continent, I can't do it. We have to be realistic. This of course comes with the cost. But we will be able to feed those service stations in diesel. And if we go -- if we can go even further, we will do it, we were asked by the French government to act as an intermediary. To look at the logistics between producers and other distributors in France, we are currently looking at the possibilities that we have to help secure the supply interest. Two questions on the payback. The first one on the buyback of [indiscernible] why not increasing the dividend rather than buying those shares back. It would be better for the reliable shareholders. So 3.5% of the shareholding. If we have 3% of the shareholding, we will be able to increase dividend. All the buybacks that were necessary are a way to maintain the growth for the future. We have decided on 5% [Indiscernible], and I hope we'll be able to continue on this trajectory for the years to come. As we said 2 to 3 years ago, the portfolio is increasing. So buybacks are not the alpha and omega for the capital allocation. Of course, the Board said it and repeated it, reiterated it, everything that you can do to, it's very good, take it. We have more cash flow. And this, of course, has an impact on other items, and we're currently working on other topics on this line. But to negotiate this person to person. Of course, it takes time to make sure that the economic condition fulfill our profitability standards. We do not want to spend money uselessly. We are buying back, and we're using this with the Board when there is additional profits to share it with the shareholders. You're company has one main priority not to increase the dividend. If we do increase dividend and there is COVID in next year or prices are decreasing, there will be a YoYo effect. So this does not seem to be right way to do things, even though 5% is really good. If you have 5% a couple of times, that will be a lot. So would you have a measured policy corresponding to the strategy of the company. But once again, buybacks are to be understood as the future growth of your dividends. So this is a virtuous circle. And this is how you have to see it. When we buy shares back, we do contribute to dividends to shareholders. Another question from Mr. [indiscernible]. The price of shares is lower than 15 years ago. Thus wrapping up all of the activities. I have looked at it. I've looked at the price of the share in 2006, 2007. It was close to EUR 58. We're at EUR 52, EUR 53. So first comment we're getting close to it. It is better than the [Indiscernible] during COVID or [Indiscernible] 2 months ago. So we're encouraged by the current price. We have made them and calculate its -- the return to the shareholders of people who bought shares 15 years ago. If they got shares 15 years ago, they will have received 4.25% in 15 years. So this is not a bad investment. I think the price of insurance was low -- the entry price was lower 15 years ago than it is now. And the profitability yield on dividends is even at 5%, 6% now. So TotalEnergies is not about investment at all. And what I would like to also notice with deep interest is that part of the investors are saying that we're not doing enough and that we should renounce and that we should refuse the new, old projects have increased tensions within TotalEnergies over the past years. And they do not like commission, but they like dividends, which is normal for shareholders. Next question, [indiscernible] claim finance on the finance policy. March last year, TotalEnergies contracted loan of $8 billion. Could you please give us clarification on these loan and the reasons why TotalEnergies need to act like this?

I will take this opportunity because my colleague, the CEO of BNP Paribas, have the same question saying that we -- that the French banks were secretly financing Uganda with $8 billion. This is not how things happen. The financial world is much more compliant. This is a short-term loan, what we call a revolving loan. Because in February, March after the Ukrainian conflict, the gas and oil markets were very volatile. And do you have what we -- margin calls reaching very high level. And when Jean-Pierre told me, I would like to have EUR 1 billion cash flow. I told him, we're going to look for solutions. So your company found and took measures to reduce the attrition by as closing the margins. So this is short-term loan. The commitment to banks is not to do finance all projects. And I'm going to see the whole truth. We have used EUR 3 billion, and we have paid it back. So EUR 3 billion on this line of credits used by Jean-Pierre and the catchment team and finance team of Jean-Pierre. They were paid back to the banks. And in no occasion, it is just to enter the security and safety of the function of oil and gas markets. And many companies share these constraints. We, as a major stakeholder, did not want to be defaulting. So thank the banks for trusting us. There was no direct or indirect impact on our capacity to finance long-term project, because they are not the same projects. So for this answer, I would like to put an end into some kind of fantasy saying that there will be part of us hiding things and acting secretly. We used EUR 3 billion and we paid it back. And once again, we made the necessary measures in order to avoid repeating it in the future. We have reciprocal guarantees without the needing [indiscernible] for the organized merchandise have more guarantees. So this is a bit technical, but this is how we work on energy markets. Once again, our main concern was to make sure that those markets will go functioning very well.

Another question on our transformation and the evolution of our markets. By 2025, the car fleet will change for about 1/3 minimum and we'll have more electric vehicles, so less need for oil. This represents more than 1/3 of your sales today. Will you be able to continue to pay a dividend between 5% and 6%.

Well, I hope so, that's why we're accelerating transformation. There'll be less revenue for oil. So we need more revenue from electricity and decarbonized energy, and that's the whole strategy of the company. We need to be simple and clear. Yes, we accept this idea, and we're facing it. Today, we have sales revenue that are significant, but this is why we need the support of the shareholders to accelerate a new poll for revenue and cash flow. Last year, the EBITDA that we drew from the electricity business is EUR 1.5 billion. It's the first time we exceed EUR 1 billion, and we want this division with the electricity business to be cash positive by 2030 in order to be able to pay future dividends. in my answer, I feel that we're guaranteeing 5% growth per year during 10 years, maybe not. We say that we have a portfolio that continues to help us grow the dividend. If you want 5% and you believe that, at least buy a lot of shares from TotalEnergies.

Question on electric vehicles [indiscernible],what is the plan to convert service stations for 2 electric cars? .

That's a good question. That depends on the service stations. For the motorway stations, we have committed very quickly to this because we're equipping them with fast charging points. We are determined there. We're winning more motorway stations because of our charging points. We have about 40% of the fleet of service stations in France. We have a plan that we're deploying to have charging points in cities, Paris and towards London, Singapore, Brussels. We're going to see how the business models in these different cities work, because we need users there around the urban areas like Paris. And I said it in Tulos recently, what we imagine is to develop electric hubs. So centers, they're completely dedicated to charging points to not have gasoline and electricity alongside, because we have a lot of taxis, for instance, are switching to electricity, and this will allow us to be more efficient in the offer that we provide. So maybe 3 or 4 major electricity hub around Paris and in the large city in France to have at least 1, where we have questions is the more rural service stations because they already have a fragile balance, so we don't want to close them. And it's probable that in rural areas, people have homes, and it's easy to set up a charging point. And I think they'll switch very quickly to electric vehicles because they'll see a gain in their consumption. So I encouraged them to look at this very quickly. So the more delicate part is how we transition service stations in the rural areas, and that's a quick answer. I think we're going to take one final question because I'm supposed to finish at 1 and now go further.

Well, to wrap up, it's a good question to conclude. Antonio Manso. How do you see TotalEnergies in 50 years?

Well, we kind of threw a shelf of the deep end with 30 years, which wasn't bad in the report. I think it was a way to show concretely what a net 0 company was by 2050. So -- and 50 years further down. I invite you to read this report. It's really interesting to be net 0. We made some calculation and I'm looping back to the infamous AI scenario. They are not saying that there's no oil and gas. They're saying that there's 25% of oil and gas. And because there's this oil and gas, we'll need to store 5 billion or 6 billion tons of carbon per year to be net 0. So we've taken the 25%, not because we are oil and gas druggies, but because we feel that oil and gas is part of this transition. Yes, at the end, our energy will be much more electric in 2050 than it is today. We need to electrify economy, but clients want electricity that works all the time, and gas allows this complementarity, but we need methane emission to go to 0. And we've been working on this for several years. We have technologies to bring it to 0. We can do it. We will do it at least for TotalEnergies. And I hope that all of the actors and the gas chain have the same ambition that we said. 20% of hydrocarbons, so we need to be able to capture and store or recycle. You can recycle CO2 by doing e-fuels tomorrow or e-plastic. You can imagine having hydrogen plus CO2 to create raw materials provided CO2 becomes not anthropogenic, but biogenic, we need to fix the CO2. It's about 100 million tons that we need to be able to store. So we need to develop storage capacities, not for us, for our customers to offer this to other industrialists and to contribute to the 5 billion ton, 2% is about the weight of the TotalEnergies in the energy world. So 500 million tons should be our ambition in carbon capture and storage, and we need to see how to get this. There's also renewable electricity, which is major. So the electricity business will dominate within TotalEnergies by 2050 from more than 50%. And then all of the decarbonized molecule is a mix of e-fuels, biogas, biomethane, methanol, ammonia, and we can see that tomorrow's mobility ships, trucks, planes, need liquid fuel for reasons of storage. It might not be oil anymore. It will be a mix of biofuels and other energies that I've described. Methanol or ammonia for ships, for instance, that's what we'll do. We need to change. To do this, we are not going to solve everything in 10 years, but our ambition is that between now and 2030. We have 100 gigawatts of renewables. You'll see that we accelerate it. We accelerated this morning with the acquisition of Clearway with close to 12 or 15 gigawatts. It's not small, and we have the means to do others. We just need to find the players that we trust who are the right partners for this ambition. So I'm convinced that TotalEnergies' is net 0 in 2050 is a reality and so that our shareholders are reassured, it is a company that will produce dividend and continue to do what we've been doing since 1982, to not decrease the dividend and to grow it. And thank you for your questions. I think since it's 12:30, according to the time line that we have, I just need to look at the script, we need to move to the vote for the resolutions. I just wanted to clarify that the present sheet by the centralizer of the assembly, the shareholders present are -- so we have about 1.77 billion shareholders with 1.91 billion shares. We are close to 67%. And thus, we can vote the resolutions for the ordinary and extraordinary meeting. The resolutions that are 1 through 16, as well as the ABC resolution, not agreed by your Board must have majority of the votes to be adopted. The resolutions for the extraordinary meeting, which are 17 to 23 need the vote to the 2/3 to be adopted. In application of the law the votes that are nil or abstentions are not taken into account. The shareholders having voted before the shareholders' meeting by correspondence or via the access platform have 1.84 billion voting rights, and we thank them for it. With Jean-Pierre Sbraire. Before I give the floor to Jean-Pierre for the resolutions, the vote is done through the electronic pad that was handed to you when you registered. A very easy video shows you how to explain it. If there's any issue, raise your hand and you have attendance that will help you with this. Please return your tablet at the beginning -- at the entry of the room. To vote the resolutions of the shareholder meeting, you were handed a tablet. It is strictly personal and is only used for this meeting. When you have the announcement of the vote of resolution, the voting window is shown automatically on your tablet even if it's paused. To vote, it is very simple. Push on the button that is the one of your choice or abstain against. Press on okay to validate your choice before the voting time comes to an end. Once your vote is validated, you can no longer modify it. Thank you for returning your tablet as you exit the hall.

I give the floor to Jean-Pierre, the Secretary for the text. The text of the resolution are between Page 31 and 40 of the brochure available at the beginning of the room. So I will not read them in extenso, each resolution will be identified by its number and summarized before it's put to a vote. Resolution 1. The first resolution is the approval of the corporate accounts of TotalEnergies SE for 2021 with a benefit of profit of EUR 6.868 billion. The vote is now open. [Voting]

The vote is now closed. The resolution is adopted with 99.499% of the votes. Second resolution is the approval of the consolidated accounts for 2021 with a net profit for TotalEnergies of $16.03 billion. The vote is now open. [Voting]

The vote is now closed. The resolution is adopted with 98.98%. Third resolution. Third resolution is the allocation of the revenue of TotalEnergies SE with a dividend per share of 2,064 for 2021, given the 3 interim payments of 0.66. The remainder is EUR 6.66 per share on -- it will be paid on the 1st of July 2022. The vote is now open. [Voting]

The vote is now closed. The resolution is adopted at 99.86%. Our shareholders appreciate the dividend. Resolution 4 authorizes your Board to carry out buybacks or assessment of shareholders of the company according to the law and the modalities you can see on the screen. This authorization will be granted for 18 months from today. The vote is now open. [Voting]

The vote is now closed. The resolution is approved at 99.2%. Resolution 5 approves the special report of the auditors on the convention articles L 225 and 38 and follows the code of commerce. The vote is now open. [Voting]

The vote is now closed. The resolution is adopted at 99.96%. Resolution 6 is the renewal of the mandate of Ms. Lise Croteau as a Board member for a duration of 3 years. The vote is now open. [Voting]

The vote is now closed. The resolution is adopted at 94.5%. Congratulations, Lise. Resolution 7 is the renewal of the mandate of Mrs. van der Hoeven as a Board member for a duration of 3 years, and the vote is now open. [Voting]

The vote is now closed. The resolution is adopted at 93.39%. Congratulations to Maria, who is the Head of our Audit Committee. Resolution 8 is the renewal of Mr. Jean Lemierre for a duration of 3 years as a Board member. The vote is now open. [Voting]

The vote is now closed. The resolution is adopted with 93.49%. Congratulations Jean for his continuous participation in the Board. Well, I need to read something. Resolution 9 A, B and C concern the nomination of a Board member representing the employee shareholders according to Article L205. Resolution 9 was agreed upon by the Board. Resolution A, B and C were not agreed by the Board. As Marie-Christine Coisne-Roquette explain to you. So you need the greatest amount of votes. So I will launch the result of the vote concerning resolutions vote A, B and C after the vote of resolution C. We will proceed to the 3. So Resolution 9 is the nomination of a Board member representing employee shareholders for Ms. Emma de Jonge who was designated by the surveillance Board of TotalEnergies Actionnariat France who holds 4% of the capital of the company. The Board agreed to her application. The vote is now open. [Voting]

The vote is now closed. Resolution 8 is the nomination of a Board member Marina Delendik for a duration of 3 years. Ms. Marina Delendik was nominated by the Council of Surveillance of TotalEnergies International. This Resolution 8 was not agreed upon by the Board. The vote is now open. [Voting]

The vote is now closed. Resolution B has been nomination of Board member representing the employees, Mr. Alexandre Garrot. So it is the individual vote shareholder. Resolution B was not agreed upon by the Board. The vote is now open. [Voting]

The vote is now closed. Resolution C is the nomination of a Board member Ms. Agueda Marin was designated a candidate by the Surveillance Board of FCPE TotalEnergies Actionnariat International Capitalisation that have 38.8 million shares. Resolution C was not agreed upon by the Board. The vote is now open. [Voting]

The vote is now closed. And so the result is featured on your screen. Ms. Emma de Jonge receives 1,811,755,807 votes, is elected. Congratulations, Emma, for your election to the Board of the TotalEnergies company that you've served faithfully several years now. Moving on to 10th resolution to approve the information relative to remuneration of the [indiscernible] mentioned in Article L. 22-10-9 of the French Commercial Code for companies in the universal registration document of 2021 Chapter 4, dot 4.1.2 and 4.2.1. The vote is open. [Voting]

The vote is closed. The resolution has been adopted with 94.391%. The 11th resolution is to approve the remuneration policy applicable to the Board members in the report for the company or in the universal document 2021 Chapter 4.131. We underline that the remuneration of the Board members and mobilities of these defined by the Board remains unchanged. The vote is open. [Voting]

The vote is now closed. The resolution has been adopted with 99% of the votes. For the 12th resolution, approval of fixed element variables and exceptional composing the total remuneration and advantages of all nature during the year 2021 are attributed for this year for Mr. -- the CEO of your company. They are presented in the company documents during the universal registration document of the company in Chapter 4, 4.321. The vote is open. [Voting]

The vote is now closed. The resolution is adopted with 81.249%. Thank you shareholders, for your trust. The 13th resolution is to approve the remuneration policy applicable to the CEO as presented in the report for the company -- in the universal document 4.3.2.2. The vote is now open. [Voting]

The vote is now closed. The resolution is adopted with 79.904%. Thanks to Mark and the remuneration committee for all of their work. The 14th resolution has the renewal of the Ernst and Young audit cabinet for 6 years. The vote is now open. [Voting]

The vote is now closed. The resolution is adopted with 93.768%. The 15th resolution is to appoint the PricewaterCoopers audit as auditors. The vote is now open. [Voting]

The vote is now closed. The resolution is adopted with 98.78%. Welcome to PricewaterhouseCoopers as auditors. [Voting]

The vote is now closed. Now the 16th resolution is to emit a favorable advice on the sustainability and climate progress report 2022. Looking at the progress achieved in terms of sustainable development and energy transition towards carbon neutrality and the objectives in this aspect for the Horizon 2030 by completing its ambition. The vote is now open. [Voting]

The vote is now closed. This resolution is adopted with 88.89%. I would like to comment and say that after 92% last year, 89% this year, shareholders are supporting the strategy implemented by TotalEnergies with a large majority. Thank you. The 17th resolution is to delegation of competence to the Board to increase the capital through ordinary actions or benefit of bonuses or others to maintain the preference rights of the shareholders. The vote is now open. [Voting]

The vote is now closed. The resolution is adopted with 95.83% of the votes. Resolution 18 is a delegation of the competencies to the Board to increase the capital within offer to the public through ordinary shares and/or securities giving access to the capital of the company with a cancellation of the rights. [Voting]

The vote is now closed. The resolution is adopted at 84.96%. Resolution 19 is to grant a dedication of competence to the Board to emit via an offer to some investors or qualified investors, ordinary shares and/or securities giving access to the capital of society with a cancellation of the rights issue. The vote is now open. [Voting]

The vote is now closed. Resolution is adopted with 83.73%. Resolution 20 is a delegation of competencies to the Board to increase the number of securities in case of increase in the capital with a cancellation of the rights for shareholders. The vote is open. [Voting]

The vote is now closed. The resolution is adopted with 82.94%. Resolution 21 is to grant powers to the Board to increase the capital to compensate the in-kind support to the company with the cancellation of rights issue. The vote is open. [Voting]

Vote is now closed. The resolution is adopted with 80.05%. Resolution 22 is a delegation of competencies to the Board to do capital increase reserved to the employees or the people who are part of a savings plan for the company or the group. The vote is now open. [Voting]

The vote is now closed. And the resolution is adopted at 92.5%. Resolution 23 is the authorization to the Board for a period of 25 years to reduce the capital with reduction by 5% in order to give your company maximum latitude for its share buyback program. And this for a duration of 5 years. The vote is now open. [Voting]

The vote is now closed. And the resolution is approved at 92.86%. This wraps up the vote of the resolutions which were all adopted during this general shareholders meeting, and I thank the shareholders for expressing their votes. All of the resolutions being submitted, please return your tablets. The detail of the votes by resolution will be put online on totalenergies.com under the tab of General Shareholders Meeting 2022 in order to continue to improve these shareholders' meeting, please return your evaluation that were given to you when you signed in. The next meeting is on the 26th of May 2023. Thank you for your participation. I will make one last comment because we had shareholders meeting exceptional with the quality of the climate because there were very few people present in the room. I regret, first of all, that the individual shareholders who wanted to be present, couldn't be present. I would have wanted to have a debate, including with the people who want to be activist because the sequence, even if we took questions from the platform. This has now led to the debate that we can certainly have on these questions. Some organizations wanted to prevent access to the room. Once again, I'm not certain that in a democracy, this is the best attitude to have, including vis-a-vis the company. We respect all the point of views, but it's through dialogues that we make progress and convince one another. I can tell you that if I believe 7 years ago, when I became the Chairman and CEO that today, we would be called TotalEnergies that we invest 25% to 30% of our funds in renewables, I would not have believed it. And that's the reality of what is happening within TotalEnergies. And I think that's the best proof that we can contribute to the comments made. You noted that the infamous climate resolution for which the worst was announced was supported by 89% of the shareholders and the company continues to move forward as demonstrated by the operation we did this morning. It is moving along the right path and that's what's most important for me, for all of the employees and for all of the Board. Thank you very much. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]