The Shareholders' Newsletter #74 Summer 2024

Dear Shareholders,

It was a pleasure to see you at the Annual Shareholders’ Meeting, held this year at the Tour Coupole, our corporate headquarters, in La Défense. That was a first, and I’m aware that not everything went smoothly, starting with our strict access controls that made for a slow entry process, and I apologize to all those who were forced to wait before being able to access the event. We will learn from this initial experience so we can improve our arrangements for the event in coming years, including the video link between the two rooms. Nonetheless, I’m pleased that we could hold the event in a peaceful environment, because I especially value this opportunity for shareholder dialogue, a high point in the Company’s calendar.

Despite a less favorable economic environment than in the previous year, 2023 was a successful year for your Company, one in which our multi-energy strategy proved its relevance. For the second consecutive year, TotalEnergies was the most profitable of the majors, with an average return on capital employed of 19%, demonstrating the financial strength of our business model. That performance is the outgrowth of a strategy built on two key pillars: hydrocarbons, which are still the energy for today, and electricity, the energy at the heart of decarbonization and the energy transition. This year, we will be investing a further $5 billion in electricity and renewables, a level of capital expenditure we expect to maintain over the decade. And we have clear profitability objectives for those new businesses, which will also support a rising dividend.

As you know, since 2020 your Company has been embarked on an ambitious strategy of balanced transformation that combines profitable growth and sustainable development. And once again this year, 80% of you expressed your approval of the Sustainability & Climate 2024 Progress Report, which describes our progress in carrying out our ambitions for sustainability and the energy transition. Alongside the Board of Directors, I thank you for your commitment and support.

You have also decided to reappoint Jacques Aschenbroich as Lead Independent Director and Glenn Hubbard as an independent director. Additionally, the Board of Directors has renewed my appointment as Chairman and Chief Executive Officer, and I am extremely honored by the trust that you and the Board have placed in me. It is an enormous responsibility and one that I am conscious of each day, given the challenges we must tackle collectively to build a more sustainable energy future.

Our primary responsibility is to create and share value. The Company is in sound financial health, with a low debt level, which provides not only for our resilience in the event of falling prices but also for an attractive shareholder return policy. The average annual gross return to shareholders, which stands at nearly 10% over the past decade-the best among the majors-is evidence of that.

In 2023, that return represented nearly 46% of cash flow, or more than $16 billion, partly comprising the dividend proposed at this Annual Shareholders’ Meeting of €3.01 euros per share-a 7.1% increase over the previous fiscal year-and the remainder consisting of share buybacks.

Your Board of Directors, bolstered by the Company’s excellent results, has also approved a 7% increase in the first interim dividend for fiscal year 2024, to €0.79 per share, as well as the share buyback policy of $2 billion per quarter, meaning $4 billion for the first half of 2024. I am delighted to see that these decisions have been well received by the markets, because in this year of our centenary, TotalEnergies’ share performance is at an historic high.

In conclusion, with your support and that of our entire workforce, we are determined to maintain our clear, balanced transition strategy so that TotalEnergies can meet the challenge of the coming decades, as it did throughout the twentieth century. We will uphold that strategy and implement it openly and transparently: more energy, fewer emissions, on behalf of everyone: our employees, our customers and you, our shareholders.

Thank you for your confidence and your loyalty.