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TotalEnergies SE 6-K, filed Jul 30, 2020

TotalEnergies SE (TTE)

6-K 2020-07-30 For: 2020-06-30
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Added on April 07, 2026

About this 6-K

TotalEnergies SE filed this 6-K on July 30, 2020.

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OFFOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

July 30, 2020

Commission File Number 001-10888

TOTAL SE

(Translationof registrant’s name into English)

2, place JeanMillier

La Défense 6

92400 Courbevoie

France

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒             Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):   ☐

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):   ☐

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM F-3 (NOS. 333-224307, 333-224307-01, 333-224307-02 AND 333-224307-03) OF TOTAL SE, TOTAL CAPITAL INTERNATIONAL, TOTAL CAPITAL CANADA LTD. AND TOTAL CAPITAL AND THE REGISTRATION STATEMENT ON FORM S-8 (333-238000) OF TOTAL SE, AND TO BE PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.

TOTAL SE is providing on this Form 6-K its results for the second quarter of 2020 and six months ended June 30, 2020, and a description of certain recent developments relating to its business, as well as a capitalization table as of June 30, 2020.

Table of Contents

TABLE OF CONTENTS

SIGNATURES
EXHIBIT INDEX
EX-99.1: Results for the Second Quarter of 2020 and Six Months Ended June 30, 2020
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EX-99.2: Recent Developments
EX-99.3: Capitalization and Indebtedness
EX-101: XBRL Document
Table of Contents

EXHIBIT INDEX

Exhibit 99.1 Results for the Second Quarter of 2020 and Six Months Ended June 30, 2020
Exhibit 99.2 Recent Developments
Exhibit 99.3 Capitalization and Indebtedness
Exhibit 101 XBRL Document
Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

TOTAL SE
Date: July 30, 2020 By: /s/ ANTOINE LARENAUDIE
Name:  Antoine LARENAUDIE
Title:    Group Treasurer

EX-99.1

Exhibit 99.1

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

The financial information on pages 1-17 of this exhibit concerning TOTAL SE and all of its direct and indirect consolidated companies located in or outside of France (collectively, “TOTAL” or the “Group”) with respect to the second quarter of 2020 and six months ended June 30, 2020 has been derived from TOTAL’s unaudited consolidated balance sheets as of June 30, 2020, unaudited statements of income, comprehensive income, cash flow and business segment information for the second quarter of 2020 and six months ended June 30, 2020 and unaudited consolidated statements of changes in shareholders’ equity for the six months ended June 30, 2020 presented on pages 18-32 and 36-42 of this exhibit.

The following discussion should be read in conjunction with the aforementioned financial statements and with the information, including TOTAL’s audited consolidated financial statements and related notes, provided in TOTAL’s Annual Report on Form 20-F for the year ended December 31, 2019, filed with the Securities and Exchange Commission (“SEC”) on March 20, 2020, as amended on April 14, 2020.

A. KEY FIGURES
2Q20 1Q20 2Q19 2Q20vs2Q19 in millions of dollars (except earnings per share and number ofshares) 1H20 1H19 1H20vs1H19
--- --- --- --- --- --- --- ---
25,730 43,870 51,242 -50% Non-Group sales 69,600 102,447 -32%
821 2,300 3,589 -77% Adjusted net operating income^(a)^from business<br>segments 3,121 7,002 -55%
(209) 703 2,022 ns • Exploration & Production 494 3,744 -87%
326 913 429 -24% • Integrated Gas, Renewables & Power 1,239 1,021 +21%
575 382 715 -20% • Refining & Chemicals 957 1,471 -35%
129 302 423 -70% • Marketing & Services 431 766 -44%
(447) 732 812 ns Net income (loss) from equity affiliates 285 1,523 -81%
(3.27) (0.01) 1.00 ns Fully-diluted earnings per share ($) (3.29) 2.16 ns
2,598 2,601 2,625 -1% Fully-diluted weighted-average shares (millions) 2,598 2,622 -1%
(8,369) 34 2,756 ns Net income (Group share) (8,335) 5,867 ns
2,201 2,523 3,028 -27% Organic investments^(b)^ 4,724 5,811 -19%
721 1,102 402 +79% Net acquisitions^(c)^ 1,823 709 x2.6
2,922 3,625 3,430 -15% Net investments^(d)^ 6,547 6,520 -
3,479 1,299 6,251 -44% Cash flow from operations 4,778 9,880 -52%
Of which:
431 (884) (317) ns • (increase)/decrease in working capital^(e)^ (453) (3,287) ns
(499) (512) (501) ns • financial charges (1,011) (1,004) ns

From 2019, data takeinto account the impact of the new rule IFRS16 “Leases”, effective January 1, 2019.

(a) Adjusted results are defined as income using replacement cost, adjusted for special items, excluding the impact ofchanges for fair value. See pages 3 et seq. “Analysis of business segment results” below for further details.
(b) “Organic investments” = net investments excluding acquisitions, asset sales and other operations with non-controlling interests.
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(c) “Net acquisitions” = acquisitions—assets sales—other transactions with non-controlling interests (see page 15).
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(d) “Net investments” = organic investments + net acquisitions (see page 15).
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(e) The change in working capital as determined using the replacement cost method and, effective second quarter of 2019,including organic loan repayments from equity affiliates, and, effective first quarter of 2020, including capital gain from renewable projects sale was $331 million in 2Q20, $(2,717) million in 1Q20, $(456) million in 2Q19, $(2,386) million in1H20 and $(2,860) million in 1H19. Effective second quarter of 2019, organic loan repayments from equity affiliates are defined as loan repayments from equity affiliates coming from their cash flow from operations. For information on the replacementcost method, refer to the second paragraph of “B. Analysis of business segment results”. See also “C. Group results – Cash Flow”. The reconciliation table for different cash flow figures is set forth under “CashFlow” on page 16 of this exhibit.
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1

Environment* — liquids and gas price realizations, refining margins

2Q20 1Q20 2Q19 2Q20 vs2Q19 1H19 1H20 vs1H19
29.6 50.1 68.9 -57 % Brent (/b) 40.1 66.0 -39 %
1.8 1.9 2.5 -30 % Henry Hub (/Mbtu) 1.8 2.7 -33 %
1.7 3.1 4.1 -59 % NBP (/Mbtu) 2.4 5.2 -54 %
2.1 3.6 4.9 -57 % JKM (/Mbtu) 2.9 5.8 -50 %
23.4 44.4 63.7 -63 % Average price of liquids (/b)<br>Consolidated subsidiaries 33.8 61.2 -45 %
2.61 3.35 3.82 -32 % Average price of gas (/Mbtu)<br>Consolidated subsidiaries 2.99 4.16 -28 %
4.40 6.32 5.69 -23 % Average price of LNG (/Mbtu)<br>Consolidated subsidiaries and equity affiliates 5.42 6.42 -16 %
14.3 26.3 27.6 -48 % Variable cost margin – European refining, VCM (/t) 21.0 30.6 -31 %

All values are in US Dollars.

*The indicators are shown on page 17.

The average LNG sales price fell by 30% in the second quarter 2020 compared to the previous quarter. The share of volumes sold at spot prices increased in the second quarter 2020 compared to the first quarter 2020 due to deferrals of LNG liftings by long-term contract buyers, while the average selling price of long-term LNG contracts decreased by only 16% due to the delayed impact of lower oil prices.

Production*

2Q20 1Q20 2Q19 2Q20 vs2Q19 1H20 1H19 1H20vs1H19
2,846 3,086 2,957 -4 % Hydrocarbon production (kboe/d) 2,966 2,951 -
1,315 1,448 1,407 -7 % ●   Oil (including bitumen)<br>(kb/d) 1,381 1,416 -2 %
1,531 1,638 1,549 -1 % ●   Gas (including condensates and<br>associated LNG) (kboe/d) 1,584 1,535 +3 %
2Q20 1Q20 2Q19 2Q20 vs2Q19 1H20 1H19 1H20vs1H19
2,846 3,086 2,957 -4 % Hydrocarbon production (kboe/d) 2,966 2,951 -
1,553 1,699 1,624 -4 % ●   Liquids<br>(kb/d) 1,626 1,627 -
7,045 7,560 7,309 -4 % ●   Gas<br>(Mcf/d)** 7,302 7,238 +1 %

* Group production =production of Exploration & Production segment (EP) + production of Integrated Gas, Renewables & Power segment (iGRP).

** 2Q19 and 1H19 datarestated.

Hydrocarbon production was 2,846 thousand barrels of oil equivalent per day (kboe/d) in the second quarter 2020, a decrease of 4% year-on-year, comprised of:

● -5% due to OPEC+ quotas, notably in the United Arab Emirates, Nigeria, Angola and Kazakhstan, as well as voluntary<br>reductions in Canada and disruptions in Libya.
● -1% due to gas demand in the context of the pandemic.
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● +1% due to lower prices.
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● +4% due to the start-up and ramp-up of<br>new projects, notably Culzean in the United Kingdom, Johan Sverdrup in Norway, Iara in Brazil and Tempa Rossa in Italy.
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● -3% due to the natural decline of fields.
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2

B. ANALYSIS OF BUSINESS SEGMENT RESULTS

The financial information for each business segment is reported on the same basis as that used internally by the chief operating decision-maker in assessing segment performance and the allocation of segment resources. Due to their particular nature or significance, certain transactions qualifying as “special items” are excluded from the business segment figures. In general, special items relate to transactions that are significant, infrequent or unusual. In certain instances, certain transactions such as restructuring costs or asset disposals, which are not considered to be representative of the normal course of business, may qualify as special items although they may have occurred in prior years or are likely to recur in following years.

In accordance with IAS 2, the Group values inventories of petroleum products in its financial statements according to the First-In, First-Out (FIFO) method and other inventories using the weighted-average cost method. Under the FIFO method, the cost of inventory is based on the historic cost of acquisition or manufacture rather than the current replacement cost. In volatile energy markets, this can have a significant distorting effect on the reported income. Accordingly, the adjusted results of the Refining & Chemicals and Marketing & Services segments are presented according to the replacement cost method in order to facilitate the comparability of the Group’s results with those of its competitors and to help illustrate the operating performance of these segments excluding the impact of oil price changes on the replacement of inventories. In the replacement cost method, which approximates the Last-In, First-Out (LIFO) method, the variation of inventory values in the statement of income is, depending on the nature of the inventory, determined using either the month-end price differential between one period and another or the average prices of the period. The inventory valuation effect is the difference between the results under the FIFO and replacement cost methods.

The effect of changes in fair value presented as an adjustment item reflects, for trading inventories and storage contracts, differences between internal measures of performance used by TOTAL’s management and the accounting for these transactions under IFRS, which requires that trading inventories be recorded at their fair value using period-end spot prices. In order to best reflect the management of economic exposure through derivative transactions, internal indicators used to measure performance include valuations of trading inventories recorded at their fair value based on forward prices. Furthermore, TOTAL, in its trading activities, enters into storage contracts, the future effects of which are recorded at fair value in the Group’s internal economic performance. IFRS, by requiring accounting for storage contracts on an accrual basis, precludes recognition of this fair value effect.

The adjusted business segment results (adjusted operating income and adjusted net operating income) are defined as replacement cost results, adjusted for special items, excluding the effect of changes in fair value. For further information on the adjustments affecting operating income on a segment-by-segment basis, and for a reconciliation of segment figures to figures reported in TOTAL’s interim consolidated financial statements, see pages 26-32 of this exhibit.

The Group measures performance at the segment level on the basis of adjusted net operating income. Net operating income comprises operating income of the relevant segment after deducting the amortization and the depreciation of intangible assets other than leasehold rights, translation adjustments and gains or losses on the sale of assets, as well as all other income and expenses related to capital employed (dividends from non-consolidated companies, income from equity affiliates and capitalized interest expenses) and after income taxes applicable to the above. The income and expenses not included in net operating income that are included in net income are interest expenses related to long-term liabilities net of interest earned on cash and cash equivalents, after applicable income taxes (net cost of net debt and non-controlling interests). Adjusted net operating income excludes the effect of the adjustments (special items and the inventory valuation effect) described above.

3

B.1.    Integrated Gas, Renewables & Power segment (iGRP)

Liquefied natural gas (LNG) production and sales and low carbon electricity

2Q20 1Q20 2Q19 2Q20 vs2Q19 Hydrocarbon production for LNG 1H20 1H19 1H20vs1H19
520 552 559 -7 % iGRP (kboe/d) 536 538 -
66 73 73 -10 % ●   Liquids (kb/d) 69 70 -
2,471 2,611 2,680 -8 % ●   Gas (Mcf/d)* 2,541 2,570 -1 %
2Q20 1Q20 2Q19 2Q20 vs2Q19 LNG in Mt 1H20 1H19 1H20 vs1H19
10.4 9.8 8.5 +22 % Overall LNG sales 20.2 16.3 +24 %
4.3 4.7 4.1 +7 % ●   including sales from equity<br>production** 9.0 7.8 +15 %
8.7 7.8 6.7 +29 % ●   including sales by TOTAL from<br>equity production and third party purchases 16.5 12.7 +30 %

* 2Q19 and 1H19 datarestated.

** The Group’s equity production may be sold by TOTAL or by joint ventures.

2Q20 1Q20 2Q19 2Q20 vs2Q19 Low carbon electricity 1H20 1H19 1H20 vs1H19
5.1 3.0 2.6 +97 % Gross renewables installed capacity (GW)* 5.1 2.6 +97 %
2.9 2.9 2.4 +23 % Net low carbon power production (TWh)** 5.9 5.0 +16 %
5.9 5.9 5.5 +7 % Clients gas and power – BtB and BtC (Million)* 5.9 5.5 +7 %
26.7 47.8 27.4 -3 % Sales gas and power – BtB and BtC (TWh) 74.5 75.3 -1 %
* Capacity at end of period.
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** Solar, wind, biogas, hydroelectric and CCGT plants.
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Hydrocarbon production for LNG was stable in the first half 2020 compared to last year.

Total LNG sales increased by 22% in the second quarter 2020 compared to last year, notably due to an increase in trading activities. For the first half 2020, total sales increased by 24% year-on-year for the same reason and due to the ramp-up of Yamal LNG and Ichthys plus the start-up of the first two Cameron LNG trains in the US.

Gross installed renewable power generation capacity rose to 5.1 GW in the second quarter 2020, a strong 97% increase year-on-year, notably due to the acquisition in India of 50% of a portfolio of more than 2 GW from the Adani Group.

The Group continues to implement its strategy to integrate along the gas and electricity chain in Europe and has seen the number of its gas and electricity customers grow during the quarter to 5.9 million, a 7% increase compared to a year ago. Sales of gas and electricity decreased by 3%, impacted by lower demand linked to the lockdown in Europe.

4

Results

2Q20 1Q20 2Q19 2Q20 vs2Q19 in millions of dollars 1H20 1H19 1H20 vs1H19
3,313 5,090 3,789 -13 % Non-Group sales 8,403 10,208 -18 %
(1,074) 358 215 ns Operating income (716) 537 ns
21 399 661 -97 % Net income (loss) from equity affiliates and other items 420 1,041 -60 %
322 8 (450) ns Tax on net operating income 330 (623) ns
(731) 765 426 ns Net operating income 34 955 -96 %
1,057 148 3 x352 Adjustments affecting net operating income 1,205 66 x18
326 913 429 -24 % Adjusted net operating income* 1,239 1,021 +21 %
(69) 248 195 ns • including income from equity affiliates 179 450 -60 %
618 646 442 +40 % Organic investments 1,264 935 +35 %
433 1,137 159 x2.7 Net acquisitions 1,570 559 x2.8
1,051 1,783 601 +75 % Net investments 2,834 1,494 +90 %

*Detail ofadjustment items shown in the business segment information starting on page 26 of this exhibit.

Adjusted net operating income for the iGRP segment was $326 million in the second quarter 2020, down 24% year-on-year. The results are mainly due to the sharp drop in gas prices compared to the second quarter 2019.

In the first half 2020, adjusted net operating income for the iGRP segment was $1,239 million, an increase of 21% compared to last year, notably due to the strong 24% growth in LNG sales.

Adjusted net operating income for the Integrated Gas, Renewables & Power segment excludes special items. In the second quarter 2020, the exclusion of special items had a positive impact of $1,057 million on the segment’s adjusted net operating income, compared to a positive impact of $3 million in the second quarter 2019. In the first half 2020, the exclusion of special items had a positive impact of $1,205 million on the segment’s adjusted net operating income, compared to a positive impact of $66 million in the first half 2019.

In the second quarter 2020, the segment’s operating cash flow excluding the change in working capital at replacement cost^1^ and excluding financial charges, except those related to leases was $555 million, a decrease of 36% compared to $869 million in the second quarter 2019, mainly due to the sharp drop in gas prices compared to the second quarter 2019. In the first half 2020, the segment’s operating cash flow excluding the change in working capital at replacement cost^^and excluding financial charges, except those related to leases was $1,407 million, a decrease of 5% compared to $1,479 million in the first half 2019.

In the second quarter 2020, the segment’s cash flow from operating activities excluding financial charges, except those related to leases was $1,389 million, 2.2 times greater than $641 million in the second quarter 2019. In the first half 2020, the segment’s cash flow from operating activities excluding financial charges, except those related to leases was $900 million, a decrease of 41% compared to $1,533 million in the first half 2019.

B.2.    Exploration & Production segment

Production

2Q20 1Q20 2Q19 2Q20vs2Q19 Hydrocarbon production 1H20 1H19 1H20vs1H19
2,326 2,534 2,398 -3 % EP (kboe/d) 2,430 2,413 +1 %
1,487 1,626 1,551 -4 % ●   Liquids<br>(kb/d) 1,557 1,557 -
4,574 4,949 4,629 -1 % ●   Gas<br>(Mcf/d) 4,761 4,668 +2 %

^1^ Operating cash flow excluding the change in working capital at replacement cost provides information on underlying cash flow without the short-term impacts of changes in inventory and other workingcapital elements at replacement cost. For information on the replacement cost method, refer to “B. Analysis of business segment results”, above. The reconciliation table for different cash flow figures is set forth under “CashFlow” on page 16 of this exhibit.

5

Results

2Q20 1Q20 2Q19 2Q20 vs2Q19 in millions of dollars (except effective taxrate) 1H20 1H19 1H20 vs1H19
992 1,582 2,273 -56% Non-Group sales 2,574 4,067 -37%
(7,983) 859 2,967 ns Operating income (7,124) 5,919 ns
17 423 173 -90% Net income (loss) from equity affiliates and other items 440 367 -20%
56.6% 59.6% 39.5% Effective tax rate* 69.6% 44.0%
398 (454) (1,161) ns Tax on net operating income (56) (2,585) ns
(7,568) 828 1,979 ns Net operating income (6,740) 3,701 ns
7,359 (125) 43 x171 Adjustments affecting net operating income 7,234 43 x168
(209) 703 2,022 ns Adjusted net operating income** 494 3,744 -87%
48 390 239 -80% • including income from equity affiliates 438 452 -3%
1,112 1,572 1,995 -44% Organic investments 2,684 3,953 -32%
311 (6) 204 +52% Net acquisitions 305 242 +26%
1,423 1,566 2,199 -35% Net investments 2,989 4,195 -29%
* “Effective tax rate” = tax on adjusted net operating income / (adjusted net operating income - income fromequity affiliates - dividends received from investments - impairment of goodwill + tax on adjusted net operating income).
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** Detail of adjustment items shown in the business segment information starting on page 26 of this exhibit.
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The Exploration & Production segment’s adjusted net operating loss was $209 million in the second quarter compared to adjusted net operating income of $2,022 million a year ago due to the sharp drop in oil and gas prices and lower production.

The Exploration & Production segment’s adjusted net operating income fell to $494 million in the first half 2020 from $3,744 million in the first half 2019 due to the sharp drop in oil and gas prices.

Adjusted net operating income for the Exploration & Production segment excludes special items. In the second quarter 2020, the exclusion of special items had a positive impact of $7,359 million on the segment’s adjusted net operating income, compared to a positive impact of $43 million in the second quarter 2019. In the first half 2020, the exclusion of special items had a positive impact of $7,234 million on the segment’s adjusted net operating income, compared to a positive impact of $43 million in the first half 2019.

In the second quarter 2020, the segment’s operating cash flow excluding the change in working capital at replacement cost^^and excluding financial charges, except those related to leases was $1,810 million, a decrease of 63% compared to $4,882 million in the second quarter 2019 for the same reasons aforementioned above with respect to the adjusted net operating income for the second quarter. In the first half 2020, the segment’s operating cash flow excluding the change in working capital at replacement cost^^and excluding financial charges, except those related to leases was $4,386 million, a decrease of 52% compared to $9,128 million in the first half 2019.

In the second quarter 2020, the segment’s cash flow from operating activities excluding financial charges, except those related to leases was $910 million, a decrease of 76% compared to $3,768 million in the second quarter 2019. In the first half 2020, the segment’s cash flow from operating activities excluding financial charges, except those related to leases was $4,833 million, a decrease of 37% compared to $7,704 million in the first half 2019.

6

B.3.    Downstream (Refining & Chemicals andMarketing & Services segments)

Results

2Q20 1Q20 2Q19 2Q20 vs2Q19 in millions of dollars 1H20 1H19 1H20 vs1H19
21,419 37,198 45,180 -53% Non-Group sales 58,617 88,170 -34%
866 (1,190) 934 -7% Operating income (324) 2,747 ns
(13) (47) 222 ns Net income (loss) from equity affiliates and other items (60) 361 ns
(259) 303 (124) ns Tax on net operating income 44 (580) ns
594 (934) 1,032 -42% Net operating income (340) 2,528 ns
110 1,618 106 +3.8% Adjustments affecting net operating income 1,728 (291) ns
704 684 1,138 -38% Adjusted net operating income* 1,388 2,237 -38%
457 277 557 -18% Organic investments 734 876 -16%
(20) (30) 38 ns Net acquisitions (50) (93) ns
437 247 595 -27% Net investments 684 783 -13%

* Detail ofadjustment items shown in the business segment information starting on page 26 of this exhibit

In the second quarter 2020, the Downstream segment’s operating cash flow excluding the change in working capital at replacement cost^^and excluding financial charges, except those related to leases was $1,488 million, an increase of 4% compared to $1,432 million in the second quarter 2019. In the first half 2020, the Downstream segment’s operating cash flow excluding the change in working capital at replacement cost^^and excluding financial charges, except those related to leases was $2,552 million, a decrease of 18% compared to $3,118 in the first half 2019.

In the second quarter 2020, the Downstream segment’s cash flow from operating activities excluding financial charges, except those related to leases was $1,899 million, a decrease of 16% compared to $2,269 million in the second quarter 2019. In the first half 2020, the segment’s cash flow from operating activities excluding financial charges was $317 million, a decrease of 84% compared to $1,963 in the first half 2019.

Refining & Chemicals segment

• Refinery and petrochemicals throughput and utilization rates

2Q20 1Q20 2Q19 2Q20vs  2Q19 Refinery throughput and utilization rate* 1H20 1H19 1H20 vs1H19
1,249 1,444 1,595 -22% Total refinery throughput (kb/d) 1,347 1,729 -22%
205 255 447 -54% • France 230 520 -56%
595 756 679 -12% • Rest of Europe 676 751 -10%
449 433 469 -4% • Rest of world 441 458 -4%
59% 69% 77% Utilization rates based on crude only** 64% 83%

*Includes refineries in Africa reported in the Marketing & Services segment.

** Based on distillation capacity at the beginning of theyear.

• Petrochemicals production and utilization rates

2Q20 1Q20 2Q19 2Q20 vs2Q19 Petrochemicals production andutilization rate 1H20 1H19 1H20<br><br><br>vs1H19
1,391 1,386 993 +40% Monomers* (kt) 2,778 2,386 +16%
1,193 1,202 1,127 +6% Polymers (kt) 2,395 2,424 -1%
84% 83% 64% Vapocracker utilization rate** 83% 75%
* Olefins
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** Based on olefins production from steamcrackers and their treatment capacity at the start of the year.
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7

Refinery throughput volumes decreased by 22% in the second quarter and in the first half of 2020 year-on-year, mainly due to prolonging the planned shutdown at Feyzin in France, the decision to not restart Grandpuits after a major turnaround given the drop in demand and the shutdown of the distillation unit at the Normandy platform following an incident at the end of 2019.

Monomer production was:

● Up by a strong 40% in the second quarter compared to a year ago. In the second quarter 2019, it was 993 kt due to planned<br>maintenance on the steamcrackers at Daesan in South Korea and Port Arthur in the United States.
● Up 16% in the first half 2020 for the same reasons.
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Polymer production was:

● Up 6% in the second quarter 2020 compared to a year ago. It was 1,127 kt in the second quarter 2019 due to planned<br>maintenance of the steamcracker upstream of the polymer units at Daesan in South Korea.
● Stable in the first half with a decrease of only 1% for the same reasons and taking into account the closure of the<br>polystyrene site at El Prat in Spain and the planned maintenance at the Qatofin platform in Qatar in the first quarter 2020.
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Results

2Q20 1Q20 2Q19 2Q20<br><br><br>vs  2Q19 in millions of dollars 1H20 1H19 1H20 vs1H19
9,433 18,523 22,509 -58% Non-Group sales 27,956 44,220 -37%
632 (1,268) 484 +31% Operating income (636) 1,728 ns
(35) (57) 111 ns Net income (loss) from equity affiliates and other items (92) 260 ns
(132) 335 46 ns Tax on net operating income 203 (246) ns
465 (990) 641 -27% Net operating income (525) 1,742 ns
110 1,372 74 +49% Adjustments affecting net operating income 1,482 (271) ns
575 382 715 -20% Adjusted net operating income* 957 1,471 -35%
302 168 353 -14% Organic investments 470 593 -21%
(15) (36) (58) ns Net acquisitions (51) (182) ns
287 132 295 -3% Net investments 419 411 +2%

*Detail ofadjustment items shown in the business segment information starting on page 26 of this exhibit.

Adjusted net operating income for the Refining & Chemicals segment decreased by 20% to $575 million in the second quarter 2020 compared to a year ago. The decrease was notably due to an even more severely degraded refining margin environment in the second quarter 2020 and low plant utilization of 59%, partially offset by resilient petrochemical margins and outperformance of the trading activities. In the first half 2020, adjusted net operating income was $957 million, down 35% compared to a year ago. This decrease was notably linked to the degraded refining margin environment in the first half 2020 and to the weak plant utilization rate of 64%, partially offset by resilient petrochemical margins and very good performance of the trading activities.

Adjusted net operating income for the Refining & Chemicals segment excludes any after-tax inventory valuation effect and special items. In the second quarter 2020, the exclusion of the inventory valuation effect had a positive impact of $86 million on the segment’s adjusted net operating income, compared to a positive impact of $1 million in the second quarter 2019. In the second quarter 2020 the exclusion of special items had a positive impact of $24 million on the segment’s adjusted net operating income, compared to a positive impact of $73 million in the second quarter 2019. In the first half 2020, the exclusion of the inventory valuation effect had a positive impact of $1,371 million on the segment’s adjusted net operating income, compared to a negative impact of $344 million in the first half 2019. In the first half 2020, the exclusion of special items had a positive impact of $111 million on the segment’s adjusted net operating income, compared to a positive impact of $73 million in the first half 2019.

In the second quarter 2020, the segment’s operating cash flow excluding the change in working capital at replacement cost^^and excluding financial charges, except those related to leases was $996 million, an increase of 24% compared to $806 million in the second quarter 2019, for the reasons aforementioned with respect to the decrease in the adjusted net operating income for the second quarter 2020 in addition to the receipt in the second quarter 2020 of the dividend from HTC. In the first half 2020, the segment’s operating cash flow excluding the change in working capital at replacement cost^^and excluding financial charges, except those related to leases was $1,670 million, a decrease of 13%

8

compared to $1,910 in the first half 2019, for the reasons aforementioned with respect to the decrease in the adjusted net operating income for first half 2020.

In the second quarter 2020, the segment’s cash flow from operating activities excluding financial charges was $1,080 million, a decrease of 35% compared to $1,658 million in the second quarter 2019. In the first half 2020, the segment’s cash flow from operating activities excluding financial charges was $(103) million compared to $1,120 million in the first half 2019.

B.4.    Marketing & Services segment

Petroleum product sales

2Q20 1Q20 2Q19 2Q20 vs2Q19 sales in kb/d* 1H20 1H19 1H20 vs1H19
1,301 1,656 1,860 -30% Total Marketing & Services sales 1,478 1,848 -20%
740 906 1,004 -26% • Europe 823 1,008 -18%
561 750 856 -34% • Rest of world 656 840 -22%

*Excludes tradingand bulk refining sales.

Petroleum product sales volumes fell by 30% in the second quarter 2020 and by 20% in the first half 2020 year-on-year notably due to the impact of the lockdown on demand.

Results

2Q20 1Q20 2Q19 2Q20 vs  2Q19 in millions of dollars 1H20 1H19 1H20 vs1H19
11,986 18,675 22,671 -47% Non-Group sales 30,661 43,950 -30%
234 78 450 -48% Operating income 312 1,019 -69%
22 10 111 -80% Net income (loss) from equity affiliates and other items 32 101 -68%
(127) (32) (170) ns Tax on net operating income (159) (334) ns
129 56 391 -67% Net operating income 185 786 -76%
- 246 32 ns Adjustments affecting net operating income 246 (20) ns
129 302 423 -70% Adjusted net operating income* 431 766 -44%
155 109 204 -24% Organic investments 264 283 -7%
(5) 6 96 ns Net acquisitions 1 89 -99%
150 115 300 -50% Net investments 265 372 -29%

*Detail ofadjustment items shown in the business segment information starting on page 26 of this exhibit.

Adjusted net operating income for the Marketing & Services segment was $129 million in the second quarter 2020, a drop of 70% due to the decrease in volumes. It decreased by 44% in the first half 2020 compared to last year for the same reason.

Adjusted net operating income for the Marketing & Services segment excludes any after-tax inventory valuation effect and special items. In the second quarter 2020, the exclusion of the inventory valuation effect had a positive impact of $9 million on the segment’s adjusted net operating income, compared to a positive impact of $25 million in the second quarter 2019. In the second quarter 2020, the exclusion of special items had a negative impact of $9 million on the segment’s adjusted net operating income, compared to a positive impact of $7 million in the first half 2019. In the first half 2020, the exclusion of the inventory valuation effect had a positive impact of $163 million on the segment’s adjusted net operating income, compared to a negative impact of $27 million in the first half 2019. In the first half 2020, the exclusion of special items had a positive impact of $83 million on the segment’s adjusted net operating income, compared to a positive impact of $7 million in the first half 2019.

In the second quarter 2020, the segment’s operating cash flow excluding the change in working capital at replacement cost^^and excluding financial charges, except those related to leases was $492 million, a decrease of 21% compared to $626 million in the second quarter 2019. In the first half 2020, the segment’s operating cash flow excluding the change in working capital at replacement cost^^and excluding financial charges, except those related to leases was $882 million, a decrease of 27% compared to $1,208 million in the first half 2019.

9

In the second quarter 2020, the segment’s cash flow from operating activities excluding financial charges was $819 million, an increase of 34% compared to $611 million in the second quarter 2019. In the first half 2020, the segment’s cash flow from operating activities excluding financial charges was $420 million, a decrease of 50% compared to $843 million in the first half 2019.

C. GROUP RESULTS

Net income (Group share)

In the second quarter 2020, net income (Group share) was $(8,369) million, a decrease compared to $2,756 million in the second quarter 2019. In the first half 2020, net income (Group share) was $(8,335) million, a decrease compared to $5,867 million in the first half 2019.

Adjusted net income excludes the after-tax inventory effect, special items and the impact of changes in fair value^2^.

Adjusted net income (Group share) was:

● $126 million in the second quarter 2020, compared to $2,887 million a year ago due to lower Brent prices,<br>natural gas prices and refining margins as well as the impact of the Covid-19 crisis on demand.
● $1,907 million in the first half 2020 for the same reasons.
--- ---

Total adjustments affecting net income^3^were $(8,495) million in the second quarter 2020, including $(8,101) million for impairments.

Fully-diluted shares

The number of fully-diluted shares was 2,605 million on June 30, 2020.

Acquisitions - Asset sales

Acquisitions were:

● $857 million in the second quarter 2020, comprised notably of finalizing the acquisition in India of 50% of a<br>portfolio of installed solar activities from Adani Green Energy Limited as well as the acquisition of interests in Blocks 20 and 21 in Angola.
● $2.5 billion in the first half 2020, comprised of the elements above as well as the finalization of the acquisition<br>of 37.4% of Adani Gas Limited in India and the payment for a second tranche linked to taking the 10% stake in the Arctic LNG 2 project in Russia.
--- ---

Asset sales were:

● $136 million in the second quarter 2020.
● $678 million in the first half 2020, comprised notably of the sales of Block CA1 in Brunei, the Group’s<br>interest in the Fos Cavaou regasification terminal in France, and 50% of a portfolio of solar and wind assets by Total Quadran in France.
--- ---

Cashflow

The Group’s cash flow from operating activities was $3,479 million, a decrease of 44% compared to $6,251 million in the second quarter 2019. The Group’s cash flow from operating activities was $4,778 million in the first half 2020, a decrease of 52% compared to $9,880 million in the first half 2019.

The change in working capital at replacement cost in the second quarter 2020, which is the (increase)/decrease in working capital of $431 million as determined in accordance with IFRS adjusted for the pre-tax inventory valuation effect of $(42) million, was $389 million, compared to $(357) million in the second quarter 2019. The change in working capital at replacement cost in the first half 2020, which is the (increase)/decrease in working capital of $(453) million as determined in accordance with IFRS adjusted for the pre-tax inventory valuation effect of $(1,838) million, was $(2,291) million, compared to $(2,761) million in the first half 2019.

^2^ Details shown onpage 15 of this exhibit.<br> <br>^3^ Details shown on pages 15 and 26-32 of this exhibit.

10

In the second quarter 2020, operating cash flow excluding the change in working capital at replacement cost was $3,148 million, a decrease of 53% compared to $6,707 million in the second quarter 2019. This operating cash flow includes organic loan repayments from equity affiliates, effective second quarter 2019, and capital gain from renewable projects sale, effective first quarter 2020. In the first half 2020, operating cash flow excluding the change in working capital at replacement cost was $7,164 million, a decrease of 44% compared to $12,740 million in the first half 2019.

In the second quarter 2020, operating cash flow excluding the change in working capital at replacement cost, without financial charges (DACF)^4^ was $3,647 million, a decrease of 49% compared to $7,208 million in the second quarter 2019. In the first half 2020, operating cash flow excluding the change in working capital at replacement cost, without financial charges (DACF) was $8,175 million, a decrease of 41% compared to $13,744 million in the first half 2019.

The Group’s net cash flow^5^ was:

● $226 million in the second quarter 2020 compared to $3.3 billion a year ago due to the decrease in operating<br>cash flow before working capital changes in the context of sharply lower oil and gas prices. It remains positive thanks to the decrease in net investments.
● $0.6 billion in the first half 2020 compared to $6.2 billion year-on-year due to the decrease in operating cash flow before working capital changes of $5.6 billion in the context of sharply lower oil and gas prices.
--- ---

D. PROFITABILITY

Return on equity for the twelve months ended June 30, 2019, was 7.5%.

in millions ofdollars 07/01/2019 -  06/30/2020 04/01/2019 -  03/31/2020 07/01/2018 -  06/30/2019
Adjusted net income 8,214 11,079 13,125
Adjusted shareholders’ equity 109,448 113,607 117,787
Return on equity (ROE) 7.5% 9.8% 11.1%

Return on average capital employed was 7% for the twelve months ended June 30, 2020.

in millions ofdollars 07/01/2019 -  06/30/2020 04/01/2019 -  03/31/2020 07/01/2018 -  06/30/2019
Adjusted net operating income 10,125 13,032 15,087
Adjusted capital employed 145,621 150,418 145,247
ROACE 7.0% 8.7% 10.4%

E. 2020 SENSITIVITIES*

Change Estimated impacton adjusted netoperating income Estimatedimpact on cash  flow fromoperations
Dollar +/- 0.1 $ per € -/+ 0.1 B$ ~0 B$
Average Liquids Price** +/- 10$/b +/- 2.9 B$ +/- 3.3 B$
European gas price – NBP ($/Mbtu) +/- 1 $/Mbtu +/- 0.35 B$ +/- 0.35 B$
Variable cost margin, European refining (VCM) +/- 10 $/t +/- 0.5 B$ +/- 0.6 B$

*Sensitivities are revised once per year upon publication of the previous year’s fourth quarter results. Sensitivities are estimates based on assumptions about the Group’s portfolio in 2020. Actual results could vary significantly fromestimates based on the application of these sensitivities. The impact of the $-€ sensitivity on adjusted net operating income is essentially attributable to Refining & Chemicals. Please find the indicators detailed page 17.

** In a 60 $/b Brent environment.

^4^ DACF = debt adjusted cash flow, is defined as cash flow from operating activities before changes in workingcapital at replacement cost, without financial charges.

^5^ Net cash flow = operating cash flow beforeworking capital changes - net investments (including other transactions with non-controlling interests).

11

F. SUMMARY AND OUTLOOK

Oil prices strengthened since the beginning of June, reaching around 40 $/b, benefiting from strong compliance with the OPEC+ quotas and the decline of hydrocarbon production in the United States and Canada as well as a recovery in demand.

The oil environment, however, remains volatile, given the uncertainty around the extent and speed of the global economic recovery post-Covid-19.

The Group demonstrates discipline in the implementation of its 2020 action plan:

  • Net investments below $14 billion,

  • Savings of $1 billion on operating costs compared to 2019.

TOTAL will continue to profitably grow in low carbon electricity, particularly in renewables, with close to $2 billion of investments in 2020.

In LNG, TOTAL anticipates significant deferred liftings in the third quarter and expects the decline in oil prices observed in the second quarter to have an impact on long-term LNG contract prices in the second half of the year.

Considering the implementation of the OPEC+ quotas and the situation in Libya, the Group now expects 2020 production to be between 2.9 Mboe/d and 2.95 Mboe/d, with a low point in the third quarter during the summer season. The ramp up of Iara’s second FPSO in Brazil will contribute to production growth in the last part of the year. In the Downstream, high inventory levels continue to weigh on refining margins and utilization rates. In the Marketing & Services segment, activity in Europe returned to 90% of its pre-crisis level since June and the Group anticipates that it will remain at a comparable level in the coming months.

The Group’s priority is to generate a level of cash flow (DACF) that allows it to continue to invest in profitable projects, to preserve an attractive shareholder return and to maintain a strong balance sheet. To this end, the Group’s teams are focused on the four priorities of HSE, operational excellence, cost reduction and cash flow generation.

12

FORWARD-LOOKING STATEMENTS

This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements arebased on the beliefs and assumptions of the management of TOTAL and on the information currently available to such management. Forward-looking statements include information concerning forecasts, projections, anticipated synergies, and otherinformation concerning possible or assumed future results of TOTAL, and are often, but not always, preceded by, followed by, or otherwise include the words “believes”, “expects”, “anticipates”, “intends”,“plans”, “targets”, “estimates” or similar expressions.

Forward-looking statements are not assurances ofresults or values. They involve risks, uncertainties and assumptions. TOTAL’s future results and share value may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine these resultsand values are beyond TOTAL’s ability to control or predict. Except for its ongoing obligations to disclose material information as required by applicable securities laws, TOTAL does not have any intention or obligation to updateforward-looking statements after the distribution of this document, even if new information, future events or other circumstances have made them incorrect or misleading.

You should understand that various factors, certain of which are discussed elsewhere in this document and in the documents referred to in, or incorporated byreference into, this document, could affect the future results of TOTAL and could cause results to differ materially from those expressed in such forward-looking statements, including:

• material adverse changes in general economic conditions or in the markets served by TOTAL, including changes in theprices of oil, natural gas, refined products, petrochemical products and other chemicals;
• changes in currency exchange rates and currency devaluations;
--- ---
• the success and the economic efficiency of oil and natural gas exploration, development and production programs,including without limitation, those that are not controlled and/or operated by TOTAL;
--- ---
• uncertainties about estimates of changes in proven and potential reserves and the capabilities of production facilities;
--- ---
• uncertainties about the ability to control unit costs in exploration, production, refining and marketing (includingrefining margins) and chemicals;
--- ---
• changes in the current capital expenditure plans of TOTAL;
--- ---
• the ability of TOTAL to realize anticipated cost savings, synergies and operating efficiencies;
--- ---
• the financial resources of competitors;
--- ---
• changes in laws and regulations, including tax and environmental laws and industrial safety regulations;
--- ---
• the quality of future opportunities that may be presented to or pursued by TOTAL;
--- ---
• the ability to generate cash flow or obtain financing to fund growth and the cost of such financing and liquidityconditions in the capital markets generally;
--- ---
• the ability to obtain governmental or regulatory approvals;
--- ---
• the ability to respond to challenges in international markets, including political or economic conditions, includinginternational armed conflict, and trade and regulatory matters;
--- ---
• the ability to complete and integrate appropriate acquisitions, strategic alliances and joint ventures;
--- ---
• changes in the political environment that adversely affect exploration, production licenses and contractual rights orimpose minimum drilling obligations, price controls, nationalization or expropriation, and regulation of refining and marketing, chemicals and power generating activities;
--- ---
• the possibility that other unpredictable events such as labor disputes or industrial accidents will adversely affect thebusiness of TOTAL; and
--- ---
• the risk that TOTAL will inadequately hedge the price of crude oil or finished products.
--- ---

For additional factors, you should read the information set forth under “Item 3. -3.2 RiskFactors”, “Item 4. Information on the Company”, “Item 5. Operating and Financial Review and Prospects” and “Item 11. Quantitative and Qualitative Disclosures about Market Risk” in TOTAL’s Form 20-F/A for the year ended December 31, 2019.

13

OPERATING INFORMATION BY SEGMENT

Group production (Exploration & Production + iGRP)

2Q20 1Q20 2Q19 2Q20 vs<br> <br>2Q19 Combined liquids and gas production by<br><br><br>region (kboe/d) 1H20 1H19 1H20 vs<br> <br>1H19
1,032 1,097 997 +3% Europe and Central Asia 1,064 993 +7%
653 701 686 -5% Africa 677 691 -2%
641 681 703 -9% Middle East and North Africa 661 695 -5%
314 372 358 -12% Americas 343 365 -6%
206 235 214 -4% Asia-Pacific 220 207 +6%
2,846 3,086 2,957 -4% Total production 2,996 2,951 -
699 753 750 -7% • includes equity affiliates 726 730 -
2Q20 1Q20 2Q19 2Q20 vs<br> <br>2Q19 Liquids production by region (kb/d) 1H20 1H19 1H20 vs<br> <br>1H19
381 404 328 +16% Europe and Central Asia 392 340 +15%
514 555 549 -6% Africa 534 545 -2%
494 516 546 -9% Middle East and North Africa 505 534 -5%
127 178 160 -20% Americas 153 168 -9%
37 47 41 -10% Asia-Pacific 42 40 +5%
1,553 1,699 1,624 -4% Total production 1,626 1,627 -
199 214 225 -12% • includes equity affiliates 207 221 -6%
2Q20 1Q20 2Q19 2Q20 vs<br> <br>2Q19 Gas production by region (Mcf/d) 1H20 1H19 1H20 vs<br> <br>1H19
3,506 3,734 3,639 -4% Europe and Central Asia 3,620 3,532 +2%
706 746 703 - Africa* 726 749 -3%
818 912 866 -6% Middle East and North Africa 865 885 -2%
1,047 1,092 1,107 -5% Americas 1,069 1,104 -3%
968 1,076 994 -3% Asia-Pacific* 1,022 968 +6%
7,045 7,560 7,309 -4% Total production* 7,302 7,238 +1%
2,698 2,905 2,868 -6% • includes equity affiliates* 2,802 2,762 +1%

*2Q19 and 1H19 data restated

Downstream (Refining & Chemicals and Marketing & Services)

2Q20 1Q20 2Q19 2Q20<br> <br>vs<br><br><br>2Q19 Petroleum product sales by region (kb/d) 1H20 1H19 1H20 vs<br> <br>1H19
1,449 1,771 2,018 -28% Europe 1,610 2,020 -20%
463 683 751 -38% Africa 573 705 -19%
861 766 846 +2% Americas 814 842 -3%
433 444 536 -19% Rest of world 439 576 -24%
3,208 3,663 4,152 -23% Total consolidated sales 3,435 4,143 -17%
366 497 535 -32% • includes bulk sales 432 546 -21%
1,541 1,510 1,757 -12% • includes trading 1,525 1,749 -13%
2Q20 1Q20 2Q19 2Q20 vs2Q19 Petrochemicals production* (kt) 1H20 1H19 1H20 vs<br> <br>1H19
1,275 1,272 1,318 -3% Europe 2,547 2,734 -7%
637 664 475 +34% Americas 1,301 1,089 +19%
672 652 327 x2.1 Middle East and Asia 1,324 987 +34%

*Olefins, polymers

14

ADJUSTMENT ITEMS

Adjustment items to net income (Group share)

2Q20 1Q20 2Q19 in millions of dollars 1H20 1H19
**** (8,321) (334) (56) Special items affecting net income (Group share) **** (8,655) (70)
**** - - - • Gain (loss) on asset sales **** - -
**** (20) (80) (31) • Restructuring charges **** (100) (33)
**** (8,101) - (57) • Impairments **** (8,101) (57)
**** (200) (254) 32 • Other **** (454) 20
**** (94) (1,414) (28) After-tax inventory effect: FIFO vs. replacement cost **** (1,508) 360
**** (80) 1 (47) Effect of changes in fair value **** (79) (69)
**** (8,495) (1,747) (131) Total adjustments affecting net income **** (10,242) 221

INVESTMENTS — DIVESTMENTS

2Q20 1Q20 2Q19 2Q20 vs<br><br><br>2Q19 in millions of dollars 1H20 1H19 1H20 vs<br><br><br>1H19
2,201 2,523 3,028 -27% Organic investments (a) 4,724 5,811 -19%
162 135 185 -12% ●  Capitalized<br>exploration 297 417 -29%
733 279 370 +98% ●  Increase in non-current loans 1,012 500 x2
(58) (117) (254) ns ●  Repayment of non-current loans, excluding organic loan repayment from equity affiliates* (175) (388) ns
(47) (105) - ns ● Change in debt from renewable projects (Group<br>share) (152) - ns
857 1,644 614 +40% Acquisitions (b) 2,501 1,284 +95%
136 542 212 -36% Asset sales (c) 678 575 +18%
22 61 - ns ● Change in debt from renewable projects (partner<br>share) 83 - ns
- - - ns Other transactions with non-controlling interests (d) - - ns
2,922 3,625 3,430 -15% Net investments(a+b-c-d) 6,547 6,520 -
(41) 7 (99) ns Organic loan repayment from equity affiliates* (e) (34) (99) ns
69 166 - ns Change in debt from renewable projects financing** (f) 235 - ns
22 24 - ns Capex linked to capitalized leasing contracts (g) 46 - ns
2,928 3,774 3,331 -12% Cash flow used in investing activities<br><br><br>(a+b-c+e+f-g) 6,702 6,421 +4%

*Effective second quarter 2019, organic loan repayments from equity affiliates are defined as loan repayments from equity affiliates coming from theircash flow from operations.

**Change in debt from renewable projects (Group share and partner share).

15

CASH FLOW

2Q20 1Q20 2Q19 2Q20 vs<br>2Q19 in millions of dollars 1H20 1H19 1H20<br>vs1H19
3,647 4,528 7,208 -49% Operating cash flow before working capital changes w/o financial charges (DACF) 8,175 13,744 -41%
(499) (512) (501) ns ●  Financial<br>charges (1,011) (1,004) ns
3,148 4,016 6,707 -53% Operating cash flow before working capital changes (a) 7,164 12,740 -44%
431 (884) (317) ns ●  (Increase) decrease in<br>working capital (453) (3,287) ns
(42) (1,796) (40) ns ●  Inventory<br>effect (1,838) 526 ns
(17) (44) - ns ●  Capital gain from<br>renewable projects sale (61) - ns
(41) 7 (99) ns ●  Organic repayment of<br>loans from equity affiliates (34) (99) ns
3,479 1,299 6,251 -44% Cash flow from operations 4,778 9,880 -52%
2,201 2,523 3,028 -27% Organic investments (b) 4,724 5,811 -19%
947 1,493 3,679 -74% Free cash flow after organic investments, w/o net asset sales(a-b) 2,440 6,929 -65%
2,922 3,625 3,430 -15% Net investments (c) 6,547 6,520 -
226 391 3,277 -93% Net cash flow (a-c) 617 6,220 -90%

GEARING RATIO*

in millions of dollars 06/30/2020 03/31/2020 06/30/2019
Current borrowings 16,154 18,521 16,221
Net current financial assets (6,159) (6,412) (3,110)
Net financial assets classified as held for sale - - -
Non-current financial debt 61,540 48,896 45,394
Non-current financial assets (2,431) (1,133) (771)
Cash and cash equivalents (29,727) (21,634) (26,723)
Net debt (a) 39,377 38,238 31,011
of which leases 7,383 7,309 7,015
Shareholders’ equity – Group share 101,205 112,006 116,862
Non-controlling interests 2,334 2,428 2,362
Shareholders’ equity (b) 103,539 114,434 119,224
Net-debt-to-capital ratio = a/(a+b) 27.6% 25.0% 20.6%
Net-debt-to-capital ratio excluding leases 23.6% 21.3% 16.8%

*The net-debt-to-capital ratios include theimpact of the new IFRS 16 rule, effective January 1, 2019.

16

RETURN ON AVERAGE CAPITAL EMPLOYED

Twelve months ended June 30, 2020

in millions ofdollars Exploration &<br>Production Integrated<br>Gas,<br>Renewables &<br>Power Refining &Chemicals Marketing& Services
Adjusted net operating income 4,259 2,607 2,489 1,318
Capital employed at 06/30/2019* 90,633 37,290 12,300 8,535
Capital employed at<br>06/30/2020*                                       <br> 79,096 43,527 12,843 8,366
ROACE 5.0% 6.5% 19.8% 15.6%

Twelve months ended March 31, 2020

in millions ofdollars Exploration &<br>Production Integrated<br>Gas,<br>Renewables &<br>Power Refining &Chemicals Marketing& Services
Adjusted net operating income 6,490 2,710 2,629 1,612
Capital employed at 03/31/2019* 90,051 37,235 13,153 8,255
Capital employed at 03/31/2020* 85,622 44,236 12,878 8,764
ROACE 7.4% 6.7% 20.2% 18.9%

* At replacement cost (excluding after-tax inventory effect).

MAIN INDICATORS

$/€ Brent    (/b) Averageliquids price*(/b) Average gasprice*(/Mbtu) Average LNGprice**(/Mbtu) Variable costmargin,European  refining*** (/t)
Second quarter 2020 1.10
First quarter 2020 1.10

All values are in US Dollars.

* Sales in $ / sales in volume for consolidated subsidiaries (excluding stock value variation).

** Sales in $ / sales in volume for consolidated subsidiaries and equity affiliates (excluding stock value variation). This indicator reflects the combined effect ofsales volumes and prices of long-term contracts and spot sales. The share of spot sales volumes increased in the second quarter of 2020 compared to the first quarter 2020 due to deferments of some LNG uplifts by some long term contract buyers, whilethe average long-term contract price was only reduced by 16% because of deferred impact of the oil price decrease.

*** This indicator represents the averagemargin on variable costs realized by TOTAL’s European refining business (equal to the difference between the sales of refined products realized by TOTAL’s European refining and the crude purchases as well as associated variable costs,divided by refinery throughput in tons).

Disclaimer: Data is based on TOTAL’s reporting and is not audited. To the extent permitted by law, TOTAL SE disclaims all liability from the use of the main indicators.

17

CONSOLIDATED STATEMENT OF INCOME

TOTAL

(unaudited)
(M)(a) 1^st^ quarter2020 2^nd^ quarter2019
Sales 25,730 **** 43,870 **** **** 51,242 ****
Excise taxes (4,168) (5,293 ) (6,040 )
Revenues from sales 21,562 38,577 45,202
Purchases, net of inventory variation (12,025) (28,068 ) (30,390 )
Other operating expenses (6,321) (6,944 ) (7,078 )
Exploration costs (114) (140 ) (170 )
Depreciation, depletion and impairment of tangible assets and mineral interests (11,593) (3,635 ) (3,661 )
Other income 362 580 321
Other expense (108) (420 ) (189 )
Financial interest on debt (530) (569 ) (568 )
Financial income and expense from cash & cash equivalents 50 (155 ) (42 )
Cost of net debt (480) (724 ) (610 )
Other financial income 419 188 326
Other financial expense (161) (181 ) (188 )
Net income (loss) from equity affiliates (447) 732 812
Income taxes 484 37 (1,571 )
Consolidated net income (8,422) **** 2 **** **** 2,804 ****
Group share (8,369) 34 2,756
Non-controlling interests (53) (32 ) 48
Earnings per share () (3.27) (0.01 ) 1.01
Fully-diluted earnings per share () (3.27) (0.01 ) 1.00

All values are in US Dollars.

(a) Except for per share amounts.

18

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

TOTAL

(unaudited)
(M$) 2^nd^ quarter2020 1^st^ quarter2020 2^nd^ quarter2019
Consolidated net income **** (8,422) **** 2 **** **** 2,804 ****
Other comprehensive income
Actuarial gains and losses (356) 133 (223 )
Change in fair value of investments in equity instruments 90 (164 ) 74
Tax effect 101 (15 ) 59
Currency translation adjustment generated by the parent company 1,780 (1,976 ) 1,057
Items not potentially reclassifiable to profit and loss **** 1,615 **** (2,022 ) **** 967 ****
Currency translation adjustment (919) (21 ) (619 )
Cash flow hedge 231 (1,524 ) (246 )
Variation of foreign currency basis spread 14 56 43
Share of other comprehensive income of equity affiliates, net amount 296 (1,223 ) (135 )
Other - 3 1
Tax effect (78) 445 69
Items potentially reclassifiable to profit and loss **** (456) **** (2,264 ) **** (887 )
Total other comprehensive income (net amount) **** 1,159 **** (4,286 ) **** 80 ****
Comprehensive income **** (7,263) **** (4,284 ) **** 2,884 ****
Group share (7,253) (4,171 ) 2,797
Non-controlling interests (10) (113 ) 87

19

CONSOLIDATED STATEMENT OF INCOME

TOTAL

(unaudited)
(M)(a) 1^st^ half2019
Sales 69,600 **** 102,447 ****
Excise taxes (9,461) (12,121 )
Revenues from sales 60,139 90,326
Purchases, net of inventory variation (40,093) (60,111 )
Other operating expenses (13,265) (13,803 )
Exploration costs (254) (458 )
Depreciation, depletion and impairment of tangible assets and mineral interests (15,228) (7,127 )
Other income 942 568
Other expense (528) (398 )
Financial interest on debt (1,099) (1,129 )
Financial income and expense from cash & cash equivalents (105) (70 )
Cost of net debt (1,204) (1,199 )
Other financial income 607 486
Other financial expense (342) (383 )
Net income (loss) from equity affiliates 285 1,523
Income taxes 521 (3,480 )
Consolidated net income (8,420) **** 5,944 ****
Group share (8,335) 5,867
Non-controlling interests (85) 77
Earnings per share () (3.29) 2.17
Fully-diluted earnings per share () (3.29) 2.16

All values are in US Dollars.

(a) Except for per share amounts.

20

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

TOTAL

(unaudited)
(M$) 1^st^ half2020 1^st^ half2019
Consolidated net income **** (8,420) **** 5,944 ****
Other comprehensive income
Actuarial gains and losses (223) (59 )
Change in fair value of investments in equity instruments (74) 107
Tax effect 86 14
Currency translation adjustment generated by the parent company (196) (474 )
Items not potentially reclassifiable to profit and loss **** (407) **** (412 )
Currency translation adjustment (940) 187
Cash flow hedge (1,293) (373 )
Variation of foreign currency basis spread 70 54
Share of other comprehensive income of equity affiliates, net amount (927) 253
Other 3 2
Tax effect 367 107
Items potentially reclassifiable to profit and loss **** (2,720) **** 230 ****
Total other comprehensive income (net amount) **** (3,127) **** (182 )
Comprehensive income **** (11,547) **** 5,762 ****
Group share (11,424) 5,637
Non-controlling interests (123) 125

21

CONSOLIDATED BALANCE SHEET

TOTAL

June 30,2020 March 31,2020 December 31,2019 June 30,2019
(M$) (unaudited) (unaudited) (unaudited)
ASSETS
Non-current assets
Intangible assets, net 33,114 32,823 33,178 29,229
Property, plant and equipment, net 104,925 113,254 116,408 118,063
Equity affiliates : investments and loans 27,470 26,998 27,122 26,473
Other investments 1,627 1,660 1,778 1,660
Non-current financial assets 2,431 1,133 912 771
Deferred income taxes 7,257 6,694 6,216 6,022
Other non-current assets 2,539 2,537 2,415 2,306
Total non-current assets **** 179,363 **** 185,099 **** **** 188,029 **** **** 184,524 ****
Current assets
Inventories, net 12,688 11,556 17,132 16,410
Accounts receivable, net 13,481 18,029 18,488 20,349
Other current assets 17,155 19,429 17,013 15,958
Current financial assets 6,570 7,016 3,992 3,536
Cash and cash equivalents 29,727 21,634 27,352 26,723
Assets classified as held for sale 421 421 1,288 -
Total current assets **** 80,042 **** 78,085 **** **** 85,265 **** **** 82,976 ****
Total assets **** 259,405 **** 263,184 **** **** 273,294 **** **** 267,500 ****
LIABILITIES & SHAREHOLDERS’ EQUITY
Shareholders’ equity
Common shares 8,159 8,123 8,123 8,301
Paid-in surplus and retained earnings 107,934 119,935 121,170 123,351
Currency translation adjustment (13,265) (14,431 ) (11,503 ) (11,177 )
Treasury shares (1,623) (1,621 ) (1,012 ) (3,613 )
Total shareholders’ equity - Group share **** 101,205 **** 112,006 **** **** 116,778 **** **** 116,862 ****
Non-controlling interests **** 2,334 **** 2,428 **** **** 2,527 **** **** 2,362 ****
Total shareholders’ equity **** 103,539 **** 114,434 **** **** 119,305 **** **** 119,224 ****
Non-current liabilities
Deferred income taxes 10,346 10,462 11,858 11,486
Employee benefits 3,612 3,260 3,501 3,375
Provisions and other non-current liabilities 19,487 19,452 20,613 21,629
Non-current financial debt 61,540 48,896 47,773 45,394
Total non-current liabilities **** 94,985 **** 82,070 **** **** 83,745 **** **** 81,884 ****
Current liabilities
Accounts payable 19,198 22,123 28,394 27,059
Other creditors and accrued liabilities 24,790 25,102 25,749 22,686
Current borrowings 16,154 18,521 14,819 16,221
Other current financial liabilities 411 604 487 426
Liabilities directly associated with the assets classified as held for sale 328 330 795 -
Total current liabilities **** 60,881 **** 66,680 **** **** 70,244 **** **** 66,392 ****
Total liabilities & shareholders’ equity **** 259,405 **** 263,184 **** **** 273,294 **** **** 267,500 ****

22

CONSOLIDATED STATEMENT OF CASH FLOW

TOTAL

(unaudited)
(M$) 2^nd^ quarter2020 1^st^ quarter2020 2^nd^ quarter2019
CASH FLOW FROM OPERATING ACTIVITIES
Consolidated net income (8,422) 2 2,804
Depreciation, depletion, amortization and impairment 11,701 3,730 3,819
Non-current liabilities, valuation allowances and deferred taxes (796) (661 ) 239
(Gains) losses on disposals of assets (131) (209 ) (191 )
Undistributed affiliates’ equity earnings 978 (587 ) (168 )
(Increase) decrease in working capital 431 (884 ) (317 )
Other changes, net (282) (92 ) 65
Cash flow from operating activities **** 3,479 **** 1,299 **** **** 6,251 ****
CASH FLOW USED IN INVESTING ACTIVITIES
Intangible assets and property, plant and equipment additions (2,409) (2,364 ) (2,881 )
Acquisitions of subsidiaries, net of cash acquired - (188 ) (208 )
Investments in equity affiliates and other securities (136) (1,534 ) (437 )
Increase in non-current loans (733) (295 ) (370 )
Total expenditures **** (3,278) **** (4,381 ) **** (3,896 )
Proceeds from disposals of intangible assets and property, plant and equipment 219 44 155
Proceeds from disposals of subsidiaries, net of cash sold 12 142 (1 )
Proceeds from disposals of non-current investments 20 295 58
Repayment of non-current loans 99 126 353
Total divestments **** 350 **** 607 **** **** 565 ****
Cash flow used in investing activities **** (2,928) **** (3,774 ) **** (3,331 )
CASH FLOW USED IN FINANCING ACTIVITIES
Issuance (repayment) of shares:
- Parent company shareholders 374 - 449
- Treasury shares (2) (609 ) (1,279 )
Dividends paid:
- Parent company shareholders (1,928) (1,882 ) (2,935 )
- Non-controlling interests (76) - (93 )
Net issuance (repayment) of perpetual subordinated notes - - -
Payments on perpetual subordinated notes (134) (97 ) (175 )
Other transactions with non-controlling interests (22) (48 ) -
Net issuance (repayment) of non-current debt 15,430 42 2,331
Increase (decrease) in current borrowings (6,604) 2,785 37
Increase (decrease) in current financial assets and liabilities 449 (2,995 ) (164 )
Cash flow from (used in) financing activities **** 7,487 **** (2,804 ) **** (1,829 )
Net increase (decrease) in cash and cash equivalents **** 8,038 **** (5,279 ) **** 1,091 ****
Effect of exchange rates 55 (439 ) 200
Cash and cash equivalents at the beginning of the period 21,634 27,352 25,432
Cash and cash equivalents at the end of the period **** 29,727 **** 21,634 **** **** 26,723 ****

23

CONSOLIDATED STATEMENT OF CASH FLOW

TOTAL

(unaudited)
(M$) 1^st^ half2020 1^st^ half2019
CASH FLOW FROM OPERATING ACTIVITIES
Consolidated net income (8,420) 5,944
Depreciation, depletion, amortization and impairment 15,431 7,535
Non-current liabilities, valuation allowances and deferred taxes (1,457) 379
(Gains) losses on disposals of assets (340) (364 )
Undistributed affiliates’ equity earnings 391 (474 )
(Increase) decrease in working capital (453) (3,287 )
Other changes, net (374) 147
Cash flow from operating activities **** 4,778 **** 9,880 ****
CASH FLOW USED IN INVESTING ACTIVITIES
Intangible assets and property, plant and equipment additions (4,773) (5,585 )
Acquisitions of subsidiaries, net of cash acquired (188) (208 )
Investments in equity affiliates and other securities (1,670) (1,190 )
Increase in non-current loans (1,028) (500 )
Total expenditures **** (7,659) **** (7,483 )
Proceeds from disposals of intangible assets and property, plant and equipment 263 163
Proceeds from disposals of subsidiaries, net of cash sold 154 146
Proceeds from disposals of non-current investments 315 266
Repayment of non-current loans 225 487
Total divestments **** 957 **** 1,062 ****
Cash flow used in investing activities **** (6,702) **** (6,421 )
CASH FLOW USED IN FINANCING ACTIVITIES
Issuance (repayment) of shares:
- Parent company shareholders 374 450
- Treasury shares (611) (1,770 )
Dividends paid:
- Parent company shareholders (3,810) (4,765 )
- Non-controlling interests (76) (93 )
Net issuance (repayment) of perpetual subordinated notes - -
Payments on perpetual subordinated notes (231) (315 )
Other transactions with non-controlling interests (70) (150 )
Net issuance (repayment) of non-current debt 15,472 3,581
Increase (decrease) in current borrowings (3,819) (1,489 )
Increase (decrease) in current financial assets and liabilities (2,546) (58 )
Cash flow from (used in) financing activities **** 4,683 **** (4,609 )
Net increase (decrease) in cash and cash equivalents **** 2,759 **** (1,150 )
Effect of exchange rates (384) (34 )
Cash and cash equivalents at the beginning of the period 27,352 27,907
Cash and cash equivalents at the end of the period **** 29,727 **** 26,723 ****

24

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

TOTAL ****

(unaudited)
Common shares issued Paid-insurplus andretainedearnings Currencytranslationadjustment Treasury shares Shareholders’equity - Group<br>Share Non-<br>controllinginterests Totalshareholders’equity
(M$) Number Amount Number Amount
As of January 1, 2019 **** 2,640,602,007 **** **** 8,227 **** **** 120,569 **** **** (11,313 ) **** (32,473,281 ) (1,843 ) **** 115,640 **** **** 2,474 **** **** 118,114 ****
Net income of the first half 2019 - - 5,867 - - - 5,867 77 5,944
Other comprehensive income - - (366 ) 136 - - (230 ) 48 (182 )
Comprehensive Income **** - **** **** - **** **** 5,501 **** **** 136 **** **** - **** - **** **** 5,637 **** **** 125 **** **** 5,762 ****
Dividend - - (3,875 ) - - - (3,875 ) (93 ) (3,968 )
Issuance of common shares 26,281,753 74 1,271 - - - 1,345 - 1,345
Purchase of treasury shares - - - - (32,331,446 ) (1,770 ) (1,770 ) - (1,770 )
Sale of treasury shares^(a)^ - - - - 4,010 - - - -
Share-based payments - - 103 - - - 103 - 103
Share cancellation - - - - - - - - -
Net issuance (repayment) of perpetual subordinated notes - - (5 ) - - - (5 ) - (5 )
Payments on perpetual subordinated notes - - (207 ) - - - (207 ) - (207 )
Other operations with<br><br><br>non-controlling interests - - - - - - - (150 ) (150 )
Other items - - (6 ) - - - (6 ) 6 -
As of June 30, 2019 **** 2,666,883,760 **** **** 8,301 **** **** 123,351 **** **** (11,177 ) **** (64,800,717 ) (3,613 ) **** 116,862 **** **** 2,362 **** **** 119,224 ****
Net income of the second half 2019 - - 5,400 - - - 5,400 94 5,494
Other comprehensive income - - (293 ) (326 ) - - (619 ) 20 (599 )
Comprehensive Income **** - **** **** - **** **** 5,107 **** **** (326 ) **** - **** - **** **** 4,781 **** **** 114 **** **** 4,895 ****
Dividend - - (3,855 ) - - - (3,855 ) (22 ) (3,877 )
Issuance of common shares 106,750 - (6 ) - - - (6 ) - (6 )
Purchase of treasury shares - - - - (20,057,890 ) (1,040 ) (1,040 ) - (1,040 )
Sale of treasury shares^(a)^ - - (219 ) - 4,274,938 219 - - -
Share-based payments - - 104 - - - 104 - 104
Share cancellation (65,109,435 ) (178 ) (3,244 ) - 65,109,435 3,422 - - -
Net issuance (repayment) of perpetual subordinated notes - - 1 - - - 1 - 1
Payments on perpetual subordinated notes - - (146 ) - - - (146 ) - (146 )
Other operations with<br><br><br>non-controlling interests - - 55 - - - 55 108 163
Other items - - 22 - - - 22 (35 ) (13 )
As of December 31, 2019 **** 2,601,881,075 **** **** 8,123 **** **** 121,170 **** **** (11,503 ) **** (15,474,234 ) (1,012 ) **** 116,778 **** **** 2,527 **** **** 119,305 ****
Net income of the first half 2020 - - (8,335 ) - - - (8,335 ) (85 ) (8,420 )
Other comprehensive income - - (1,327 ) (1,762 ) - - (3,089 ) (38 ) (3,127 )
Comprehensive Income **** - **** **** - **** **** (9,662 ) **** (1,762 ) **** - **** - **** **** (11,424 ) **** (123 ) **** (11,547 )
Dividend - - (3,799 ) - - - (3,799 ) (76 ) (3,875 )
Issuance of common shares 13,179,262 36 338 - - - 374 - 374
Purchase of treasury shares - - - - (13,236,044 ) (611 ) (611 ) - (611 )
Sale of treasury shares^(a)^ - - - - 3,680 - - - -
Share-based payments - - 96 - - - 96 - 96
Share cancellation - - - - - - - - -
Net issuance (repayment) of perpetual subordinated notes - - - - - - - - -
Payments on perpetual subordinated notes - - (143 ) - - - (143 ) - (143 )
Other operations with<br><br><br>non-controlling interests - - (63 ) - - - (63 ) (7 ) (70 )
Other items - - (3 ) - - - (3 ) 13 10
As of June 30, 2020 **** 2,615,060,337 **** **** 8,159 **** **** 107,934 **** **** (13,265 ) **** (28,706,598 ) (1,623 ) **** 101,205 **** **** 2,334 **** **** 103,539 ****

^(a)^Treasury shares related to the restricted stock grants.

25

INFORMATION BY BUSINESS SEGMENT

TOTAL

(unaudited)
2nd quarter 2020 Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(M)
Non-Group sales 992 3,313 9,433 11,986 6 - 25,730
Intersegment sales 3,097 301 2,956 107 31 (6,492 ) -
Excise taxes - - (469 ) (3,699 ) - - (4,168 )
Revenues from sales 4,089 **** **** 3,614 **** **** 11,920 **** **** 8,394 **** **** 37 **** **** (6,492 ) **** 21,562 ****
Operating expenses (2,405 ) (3,406 ) (10,895 ) (7,931 ) (315 ) 6,492 (18,460 )
Depreciation, depletion and impairment of tangible assets and mineral interests (9,667 ) (1,282 ) (393 ) (229 ) (22 ) - (11,593 )
Operating income (7,983 ) **** (1,074 ) **** 632 **** **** 234 **** **** (300 ) **** - **** **** (8,491 )
Net income (loss) from equity affiliates and other items 17 21 (35 ) 22 40 - 65
Tax on net operating income 398 322 (132 ) (127 ) (26 ) - 435
Net operating income (7,568 ) **** (731 ) **** 465 **** **** 129 **** **** (286 ) **** - **** **** (7,991 )
Net cost of net debt (431 )
Non-controlling interests 53
Net income - group share **** (8,369 )
2nd quarter 2020 (adjustments)(a) Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Non-Group sales - (18 ) - - - - (18 )
Intersegment sales - - - - - - -
Excise taxes - - - - - - -
Revenues from sales - **** **** (18 ) **** - **** **** - **** **** - **** **** - **** **** (18 )
Operating expenses (27 ) (199 ) (48 ) 5 (36 ) - (305 )
Depreciation, depletion and impairment of tangible assets and mineral interests (7,338 ) (953 ) - - - - (8,291 )
Operating income (b) (7,365 ) **** (1,170 ) **** (48 ) **** 5 **** **** (36 ) **** - **** **** (8,614 )
Net income (loss) from equity affiliates and other items (57 ) (217 ) (63 ) (5 ) - - (342 )
Tax on net operating income 63 330 1 - 12 - 406
Net operating income (b) (7,359 ) **** (1,057 ) **** (110 ) **** - **** **** (24 ) **** - **** **** (8,550 )
Net cost of net debt 33
Non-controlling interests 22
Net income - group share **** (8,495 )
(a) Adjustments include special items,<br>inventory valuation effect and the effect of changes in fair value.
(b) Of which inventory valuation effect
- On operating income - - (26 ) (16 ) -
- On net operating income - - (86 ) (9 ) -
2nd quarter 2020 (adjusted) Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Non-Group sales 992 3,331 9,433 11,986 6 - 25,748
Intersegment sales 3,097 301 2,956 107 31 (6,492 ) -
Excise taxes - - (469 ) (3,699 ) - - (4,168 )
Revenues from sales 4,089 **** **** 3,632 **** **** 11,920 **** **** 8,394 **** **** 37 **** **** (6,492 ) **** 21,580 ****
Operating expenses (2,378 ) (3,207 ) (10,847 ) (7,936 ) (279 ) 6,492 (18,155 )
Depreciation, depletion and impairment of tangible assets and mineral interests (2,329 ) (329 ) (393 ) (229 ) (22 ) - (3,302 )
Adjusted operating income (618 ) **** 96 **** **** 680 **** **** 229 **** **** (264 ) **** - **** **** 123 ****
Net income (loss) from equity affiliates and other items 74 238 28 27 40 - 407
Tax on net operating income 335 (8 ) (133 ) (127 ) (38 ) - 29
Adjusted net operating income (209 ) **** 326 **** **** 575 **** **** 129 **** **** (262 ) **** - **** **** 559 ****
Net cost of net debt (464 )
Non-controlling interests 31
Adjusted net income - group share **** 126 ****
2nd quarter 2020 Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Total expenditures 1,606 1,170 307 174 21 3,278
Total divestments 204 89 22 26 9 350
Cash flow from operating activities 910 1,389 1,080 819 (719 ) 3,479

All values are in US Dollars.

26

INFORMATION BY BUSINESS SEGMENT

TOTAL

(unaudited)
1st quarter 2020 Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(M)
Non-Group sales 1,582 5,090 18,523 18,675 - - 43,870
Intersegment sales 5,564 594 6,095 89 28 (12,370 ) -
Excise taxes - - (650 ) (4,643 ) - - (5,293 )
Revenues from sales 7,146 **** **** 5,684 **** **** 23,968 **** **** 14,121 **** **** 28 **** **** (12,370 ) **** 38,577 ****
Operating expenses (3,643 ) (4,992 ) (24,841 ) (13,799 ) (247 ) 12,370 (35,152 )
Depreciation, depletion and impairment of tangible assets and mineral interests (2,644 ) (334 ) (395 ) (244 ) (18 ) - (3,635 )
Operating income 859 **** **** 358 **** **** (1,268 ) **** 78 **** **** (237 ) **** - **** **** (210 )
Net income (loss) from equity affiliates and other items 423 399 (57 ) 10 124 - 899
Tax on net operating income (454 ) 8 335 (32 ) 28 - (115 )
Net operating income 828 **** **** 765 **** **** (990 ) **** 56 **** **** (85 ) **** - **** **** 574 ****
Net cost of net debt (572 )
Non-controlling interests 32
Net income - group share **** 34 ****
1st quarter 2020 (adjustments)(a) Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Non-Group sales - 2 - - - - 2
Intersegment sales - - - - - - -
Excise taxes - - - - - - -
Revenues from sales - **** **** 2 **** **** - **** **** - **** **** - **** **** - **** **** 2 ****
Operating expenses (10 ) (119 ) (1,589 ) (346 ) (55 ) - (2,119 )
Depreciation, depletion and impairment of tangible assets and mineral interests - - - - - - -
Operating income (b) (10 ) **** (117 ) **** (1,589 ) **** (346 ) **** (55 ) **** - **** **** (2,117 )
Net income (loss) from equity affiliates and other items 128 (75 ) (208 ) - - - (155 )
Tax on net operating income 7 44 425 100 - - 576
Net operating income (b) 125 **** **** (148 ) **** (1,372 ) **** (246 ) **** (55 ) **** - **** **** (1,696 )
Net cost of net debt (101 )
Non-controlling interests 50
Net income - group share **** (1,747 )
(a) Adjustments include special items,<br>inventory valuation effect and the effect of changes in fair value.
(b) Of which inventory valuation effect
- On operating income - - (1,578 ) (218 ) -
- On net operating income - - (1,285 ) (154 ) -
1st quarter 2020 (adjusted) Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Non-Group sales 1,582 5,088 18,523 18,675 - - 43,868
Intersegment sales 5,564 594 6,095 89 28 (12,370 ) -
Excise taxes - - (650 ) (4,643 ) - - (5,293 )
Revenues from sales 7,146 **** **** 5,682 **** **** 23,968 **** **** 14,121 **** **** 28 **** **** (12,370 ) **** 38,575 ****
Operating expenses (3,633 ) (4,873 ) (23,252 ) (13,453 ) (192 ) 12,370 (33,033 )
Depreciation, depletion and impairment of tangible assets and mineral interests (2,644 ) (334 ) (395 ) (244 ) (18 ) - (3,635 )
Adjusted operating income 869 **** **** 475 **** **** 321 **** **** 424 **** **** (182 ) **** - **** **** 1,907 ****
Net income (loss) from equity affiliates and other items 295 474 151 10 124 - 1,054
Tax on net operating income (461 ) (36 ) (90 ) (132 ) 28 - (691 )
Adjusted net operating income 703 **** **** 913 **** **** 382 **** **** 302 **** **** (30 ) **** - **** **** 2,270 ****
Net cost of net debt (471 )
Non-controlling interests (18 )
Adjusted net income - group share **** 1,781 ****
1st quarter 2020 Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Total expenditures 1,659 2,291 226 160 45 4,381
Total divestments 121 344 79 46 17 607
Cash flow from operating activities 3,923 (489 ) (1,183 ) (399 ) (553 ) 1,299

All values are in US Dollars.

27

INFORMATION BY BUSINESS SEGMENT

TOTAL

(unaudited)
2nd quarter 2019 Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(M)
Non-Group sales 2,273 3,789 22,509 22,671 - - 51,242
Intersegment sales 7,586 632 8,293 139 36 (16,686 ) -
Excise taxes - - (761 ) (5,279 ) - - (6,040 )
Revenues from sales 9,859 **** **** 4,421 **** **** 30,041 **** **** 17,531 **** **** 36 **** **** (16,686 ) **** 45,202 ****
Operating expenses (4,205 ) (3,878 ) (29,168 ) (16,844 ) (229 ) 16,686 (37,638 )
Depreciation, depletion and impairment of tangible assets and mineral interests (2,687 ) (328 ) (389 ) (237 ) (20 ) - (3,661 )
Operating income 2,967 **** **** 215 **** **** 484 **** **** 450 **** **** (213 ) **** - **** **** 3,903 ****
Net income (loss) from equity affiliates and other items 173 661 111 111 26 - 1,082
Tax on net operating income (1,161 ) (450 ) 46 (170 ) 64 - (1,671 )
Net operating income 1,979 **** **** 426 **** **** 641 **** **** 391 **** **** (123 ) **** - **** **** 3,314 ****
Net cost of net debt (510 )
Non-controlling interests (48 )
Net income - group share **** 2,756 ****
2nd quarter 2019 (adjustments)(a) Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Non-Group sales - (59 ) - - - - (59 )
Intersegment sales - - - - - - -
Excise taxes - - - - - - -
Revenues from sales - **** **** (59 ) **** - **** **** - **** **** - **** **** - **** **** (59 )
Operating expenses - (54 ) (43 ) (34 ) - - (131 )
Depreciation, depletion and impairment of tangible assets and mineral interests (43 ) (11 ) (10 ) - - - (64 )
Operating income (b) (43 ) **** (124 ) **** (53 ) **** (34 ) **** - **** **** - **** **** (254 )
Net income (loss) from equity affiliates and other items - 407 (49 ) (7 ) - - 351
Tax on net operating income - (286 ) 28 9 - - (249 )
Net operating income (b) (43 ) **** (3 ) **** (74 ) **** (32 ) **** - **** **** - **** **** (152 )
Net cost of net debt (4 )
Non-controlling interests 25
Net income - group share **** (131 )
(a) Adjustments include special items,<br>inventory valuation effect and the effect of changes in fair value.
(b) Of which inventory valuation effect
- On operating income - - (6 ) (34 ) -
- On net operating income - - (1 ) (25 ) -
2nd quarter 2019 (adjusted) Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Non-Group sales 2,273 3,848 22,509 22,671 - - 51,301
Intersegment sales 7,586 632 8,293 139 36 (16,686 ) -
Excise taxes - - (761 ) (5,279 ) - - (6,040 )
Revenues from sales 9,859 **** **** 4,480 **** **** 30,041 **** **** 17,531 **** **** 36 **** **** (16,686 ) **** 45,261 ****
Operating expenses (4,205 ) (3,824 ) (29,125 ) (16,810 ) (229 ) 16,686 (37,507 )
Depreciation, depletion and impairment of tangible assets and mineral interests (2,644 ) (317 ) (379 ) (237 ) (20 ) - (3,597 )
Adjusted operating income 3,010 **** **** 339 **** **** 537 **** **** 484 **** **** (213 ) **** - **** **** 4,157 ****
Net income (loss) from equity affiliates and other items 173 254 160 118 26 - 731
Tax on net operating income (1,161 ) (164 ) 18 (179 ) 64 - (1,422 )
Adjusted net operating income 2,022 **** **** 429 **** **** 715 **** **** 423 **** **** (123 ) **** - **** **** 3,466 ****
Net cost of net debt (506 )
Non-controlling interests (73 )
Adjusted net income - group share **** 2,887 ****
2nd quarter 2019 Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Total expenditures 2,257 857 363 383 36 3,896
Total divestments 60 349 70 85 1 565
Cash flow from operating activities 3,768 641 1,658 611 (427 ) 6,251

All values are in US Dollars.

28

INFORMATION BY BUSINESS SEGMENT

TOTAL

(unaudited)
1st half 2020 Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(M)
Non-Group sales 2,574 8,403 27,956 30,661 6 - 69,600
Intersegment sales 8,661 895 9,051 196 59 (18,862 ) -
Excise taxes - - (1,119 ) (8,342 ) - - (9,461 )
Revenues from sales 11,235 **** **** 9,298 **** **** 35,888 **** **** 22,515 **** **** 65 **** **** (18,862 ) **** 60,139 ****
Operating expenses (6,048 ) (8,398 ) (35,736 ) (21,730 ) (562 ) 18,862 (53,612 )
Depreciation, depletion and impairment of tangible assets and mineral interests (12,311 ) (1,616 ) (788 ) (473 ) (40 ) - (15,228 )
Operating income (7,124 ) **** (716 ) **** (636 ) **** 312 **** **** (537 ) **** - **** **** (8,701 )
Net income (loss) from equity affiliates and other items 440 420 (92 ) 32 164 - 964
Tax on net operating income (56 ) 330 203 (159 ) 2 - 320
Net operating income (6,740 ) **** 34 **** **** (525 ) **** 185 **** **** (371 ) **** - **** **** (7,417 )
Net cost of net debt (1,003 )
Non-controlling interests 85
Net income - group share **** (8,335 )
1st half 2020 (adjustments)(a) Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Non-Group sales - (16 ) - - - - (16 )
Intersegment sales - - - - - - -
Excise taxes - - - - - - -
Revenues from sales - **** **** (16 ) **** - **** **** - **** **** - **** **** - **** **** (16 )
Operating expenses (37 ) (318 ) (1,637 ) (341 ) (91 ) - (2,424 )
Depreciation, depletion and impairment of tangible assets and mineral interests (7,338 ) (953 ) - - - - (8,291 )
Operating income (b) (7,375 ) **** (1,287 ) **** (1,637 ) **** (341 ) **** (91 ) **** - **** **** (10,731 )
Net income (loss) from equity affiliates and other items 71 (292 ) (271 ) (5 ) - - (497 )
Tax on net operating income 70 374 426 100 12 - 982
Net operating income (b) (7,234 ) **** (1,205 ) **** (1,482 ) **** (246 ) **** (79 ) **** - **** **** (10,246 )
Net cost of net debt (68 )
Non-controlling interests 72
Net income - group share **** (10,242 )
(a) Adjustments include special items,<br>inventory valuation effect and the effect of changes in fair value.
(b) Of which inventory valuation effect
- On operating income - - (1,604 ) (234 ) -
- On net operating income - - (1,371 ) (163 ) -
1st half 2020 (adjusted) Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Non-Group sales 2,574 8,419 27,956 30,661 6 - 69,616
Intersegment sales 8,661 895 9,051 196 59 (18,862 ) -
Excise taxes - - (1,119 ) (8,342 ) - - (9,461 )
Revenues from sales 11,235 **** **** 9,314 **** **** 35,888 **** **** 22,515 **** **** 65 **** **** (18,862 ) **** 60,155 ****
Operating expenses (6,011 ) (8,080 ) (34,099 ) (21,389 ) (471 ) 18,862 (51,188 )
Depreciation, depletion and impairment of tangible assets and mineral interests (4,973 ) (663 ) (788 ) (473 ) (40 ) - (6,937 )
Adjusted operating income 251 **** **** 571 **** **** 1,001 **** **** 653 **** **** (446 ) **** - **** **** 2,030 ****
Net income (loss) from equity affiliates and other items 369 712 179 37 164 - 1,461
Tax on net operating income (126 ) (44 ) (223 ) (259 ) (10 ) - (662 )
Adjusted net operating income 494 **** **** 1,239 **** **** 957 **** **** 431 **** **** (292 ) **** - **** **** 2,829 ****
Net cost of net debt (935 )
Non-controlling interests 13
Adjusted net income - group share **** 1,907 ****
1st half 2020 Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Total expenditures 3,265 3,461 533 334 66 7,659
Total divestments 325 433 101 72 26 957
Cash flow from operating activities 4,833 900 (103 ) 420 (1,272 ) 4,778

All values are in US Dollars.

29

INFORMATION BY BUSINESS SEGMENT

TOTAL

(unaudited)
1st half 2019 Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(M)
Non-Group sales 4,067 10,208 44,220 43,950 2 - 102,447
Intersegment sales 15,302 1,259 16,310 301 63 (33,235 ) -
Excise taxes - - (1,537 ) (10,584 ) - - (12,121 )
Revenues from sales 19,369 **** **** 11,467 **** **** 58,993 **** **** 33,667 **** **** 65 **** **** (33,235 ) **** 90,326 ****
Operating expenses (8,234 ) (10,287 ) (56,502 ) (32,178 ) (406 ) 33,235 (74,372 )
Depreciation, depletion and impairment of tangible assets and mineral interests (5,216 ) (643 ) (763 ) (470 ) (35 ) - (7,127 )
Operating income 5,919 **** **** 537 **** **** 1,728 **** **** 1,019 **** **** (376 ) **** - **** **** 8,827 ****
Net income (loss) from equity affiliates and other items 367 1,041 260 101 27 - 1,796
Tax on net operating income (2,585 ) (623 ) (246 ) (334 ) 124 - (3,664 )
Net operating income 3,701 **** **** 955 **** **** 1,742 **** **** 786 **** **** (225 ) **** - **** **** 6,959 ****
Net cost of net debt (1,015 )
Non-controlling interests (77 )
Net income - group share **** 5,867 ****
1st half 2019 (adjustments)(a) Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Non-Group sales - (86 ) - - - - (86 )
Intersegment sales - - - - - - -
Excise taxes - - - - - - -
Revenues from sales - **** **** (86 ) **** - **** **** - **** **** - **** **** - **** **** (86 )
Operating expenses - (112 ) 449 40 - - 377
Depreciation, depletion and impairment of tangible assets and mineral interests (43 ) (11 ) (10 ) - - - (64 )
Operating income (b) (43 ) **** (209 ) **** 439 **** **** 40 **** **** - **** **** - **** **** 227 ****
Net income (loss) from equity affiliates and other items - 413 (47 ) (7 ) - - 359
Tax on net operating income - (270 ) (121 ) (13 ) - - (404 )
Net operating income (b) (43 ) **** (66 ) **** 271 **** **** 20 **** **** - **** **** - **** **** 182 ****
Net cost of net debt (8 )
Non-controlling interests 47
Net income - group share **** 221 ****
(a) Adjustments include special items,<br>inventory valuation effect and the effect of changes in fair value.
(b) Of which inventory valuation effect
- On operating income - - 486 40 -
- On net operating income - - 344 27 -
1st half 2019 (adjusted) Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Non-Group sales 4,067 10,294 44,220 43,950 2 - 102,533
Intersegment sales 15,302 1,259 16,310 301 63 (33,235 ) -
Excise taxes - - (1,537 ) (10,584 ) - - (12,121 )
Revenues from sales 19,369 **** **** 11,553 **** **** 58,993 **** **** 33,667 **** **** 65 **** **** (33,235 ) **** 90,412 ****
Operating expenses (8,234 ) (10,175 ) (56,951 ) (32,218 ) (406 ) 33,235 (74,749 )
Depreciation, depletion and impairment of tangible assets and mineral interests (5,173 ) (632 ) (753 ) (470 ) (35 ) - (7,063 )
Adjusted operating income 5,962 **** **** 746 **** **** 1,289 **** **** 979 **** **** (376 ) **** - **** **** 8,600 ****
Net income (loss) from equity affiliates and other items 367 628 307 108 27 - 1,437
Tax on net operating income (2,585 ) (353 ) (125 ) (321 ) 124 - (3,260 )
Adjusted net operating income 3,744 **** **** 1,021 **** **** 1,471 **** **** 766 **** **** (225 ) **** - **** **** 6,777 ****
Net cost of net debt (1,007 )
Non-controlling interests (124 )
Adjusted net income - group share **** 5,646 ****
1st half 2019 Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Total expenditures 4,282 1,975 648 527 51 7,483
Total divestments 89 574 239 157 3 1,062
Cash flow from operating activities 7,704 1,533 1,120 843 (1,320 ) 9,880

All values are in US Dollars.

30

Reconciliation of the information by business segment with Consolidated Financial Statements

TOTAL

(unaudited)

Consolidated
2^nd^ quarter 2020 statement
(M$) Adjusted Adjustments^(a)^ of income
Sales **** 25,748 **** **** (18 ) **** 25,730 ****
Excise taxes (4,168 ) - (4,168 )
Revenues from sales 21,580 (18 ) 21,562
Purchases net of inventory variation (11,842 ) (183 ) (12,025 )
Other operating expenses (6,199 ) (122 ) (6,321 )
Exploration costs (114 ) - (114 )
Depreciation, depletion and impairment of tangible assets and mineral interests (3,302 ) (8,291 ) (11,593 )
Other income 240 122 362
Other expense (103 ) (5 ) (108 )
Financial interest on debt (527 ) (3 ) (530 )
Financial income and expense from cash & cash equivalents (3 ) 53 50
Cost of net debt (530 ) 50 (480 )
Other financial income 419 - 419
Other financial expense (160 ) (1 ) (161 )
Net income (loss) from equity affiliates 11 (458 ) (447 )
Income (Expense) taxes 95 389 484
Consolidated net income **** 95 **** **** (8,517 ) **** (8,422 )
Group share 126 (8,495 ) (8,369 )
Non-controlling interests (31 ) (22 ) (53 )
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fairvalue.
Consolidated
2^nd^ quarter 2019 statement
(M$) Adjusted Adjustments^(a)^ of income
Sales **** 51,301 **** **** (59 ) **** 51,242 ****
Excise taxes (6,040 ) - (6,040 )
Revenues from sales 45,261 (59 ) 45,202
Purchases net of inventory variation (30,295 ) (95 ) (30,390 )
Other operating expenses (7,042 ) (36 ) (7,078 )
Exploration costs (170 ) - (170 )
Depreciation, depletion and impairment of tangible assets and mineral interests (3,597 ) (64 ) (3,661 )
Other income 253 68 321
Other expense (117 ) (72 ) (189 )
Financial interest on debt (564 ) (4 ) (568 )
Financial income and expense from cash & cash equivalents (42 ) - (42 )
Cost of net debt (606 ) (4 ) (610 )
Other financial income 326 - 326
Other financial expense (188 ) - (188 )
Net income (loss) from equity affiliates 457 355 812
Income (Expense) taxes (1,322 ) (249 ) (1,571 )
Consolidated net income **** 2,960 **** **** (156 ) **** 2,804 ****
Group share 2,887 (131 ) 2,756
Non-controlling interests 73 (25 ) 48
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fairvalue.

31

Reconciliation of the information by business segment with Consolidated Financial Statements

TOTAL

(unaudited)

Consolidated
1^st^ half 2020 statement of
(M$) Adjusted Adjustments^(a)^ income
Sales **** 69,616 **** **** (16 ) **** 69,600 ****
Excise taxes (9,461 ) - (9,461 )
Revenues from sales 60,155 (16 ) 60,139
Purchases net of inventory variation (37,949 ) (2,144 ) (40,093 )
Other operating expenses (12,985 ) (280 ) (13,265 )
Exploration costs (254 ) - (254 )
Depreciation, depletion and impairment of tangible assets and mineral interests (6,937 ) (8,291 ) (15,228 )
Other income 820 122 942
Other expense (294 ) (234 ) (528 )
Financial interest on debt (1,094 ) (5 ) (1,099 )
Financial income and expense from cash & cash equivalents (13 ) (92 ) (105 )
Cost of net debt (1,107 ) (97 ) (1,204 )
Other financial income 607 - 607
Other financial expense (341 ) (1 ) (342 )
Net income (loss) from equity affiliates 669 (384 ) 285
Income (Expense) taxes (490 ) 1,011 521
Consolidated net income **** 1,894 **** **** (10,314 ) **** (8,420 )
Group share 1,907 (10,242 ) (8,335 )
Non-controlling interests (13 ) (72 ) (85 )
(a) Adjustments include special items, inventory valuation effect and the effect of changes in fairvalue.
Consolidated
1^st^ half 2019 statement of
(M$) Adjusted Adjustments^(a)^ income
Sales **** 102,533 **** **** (86 ) **** 102,447 ****
Excise taxes (12,121 ) - (12,121 )
Revenues from sales 90,412 (86 ) 90,326
Purchases net of inventory variation (60,533 ) 422 (60,111 )
Other operating expenses (13,758 ) (45 ) (13,803 )
Exploration costs (458 ) - (458 )
Depreciation, depletion and impairment of tangible assets and mineral interests (7,063 ) (64 ) (7,127 )
Other income 453 115 568
Other expense (190 ) (208 ) (398 )
Financial interest on debt (1,121 ) (8 ) (1,129 )
Financial income and expense from cash & cash equivalents (70 ) - (70 )
Cost of net debt (1,191 ) (8 ) (1,199 )
Other financial income 486 - 486
Other financial expense (383 ) - (383 )
Net income (loss) from equity affiliates 1,071 452 1,523
Income (Expense) taxes (3,076 ) (404 ) (3,480 )
Consolidated net income **** 5,770 **** **** 174 **** **** 5,944 ****
Group share 5,646 221 5,867
Non-controlling interests 124 (47 ) 77

(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

32

TOTAL

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FIRST SIX MONTHS 2020

(unaudited)

1) Accounting policies

The consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and IFRS as published by the International Accounting Standards Board (IASB).

The interim consolidated financial statements of TOTAL SE and its subsidiaries (the Group) as of June 30, 2020, are presented in U.S. dollars and have been prepared in accordance with International Accounting Standard (IAS) 34 “Interim Financial Reporting”.

The accounting principles applied for the consolidated financial statements at June 30, 2020, are consistent with those used for the financial statements at December 31, 2019, with the exception of standards or amendments that must be applied for periods beginning January 1, 2020.

On January 1, 2020, the Group applied the amendments to IFRS9 and IFRS7 relating to the IBOR reform. The amendments modify some specific hedge accounting requirements to provide relief from potential effects of the uncertainty caused by the IBOR reform, and therefore maintain the hedge accounting qualification of interest rate derivatives. The Group is currently assessing the future impacts of these index changes.

The preparation of financial statements in accordance with IFRS for the closing as of June 30, 2020 requires the executive management to make estimates, assumptions and judgments that affect the information reported in the Consolidated Financial Statements and the Notes thereto.

These estimates, assumptions and judgments are based on historical experience and other factors believed to be reasonable at the date of preparation of the financial statements. They are reviewed on an on-going basis by management and therefore could be revised as circumstances change or as a result of new information.

The main estimates, judgments and assumptions relate to the estimation of hydrocarbon reserves in application of the successful efforts method for the oil and gas activities, asset impairments, employee benefits, asset retirement obligations and income taxes. These estimates and assumptions are described in the Notes to the Consolidated Financial Statements as of December 31, 2019.

The interim consolidated financial statements are impacted by the Covid-19 and oil crises described in note 7 Other risks and contingent liabilities. The Group has taken this environment into account in its estimates, notably those relating to inventory valuation, asset impairments, employee benefits and income taxes.

As of June 30, 2020, the Group has decided to revise the price assumptions used for its assets impairment tests. Based on these new assumptions, asset impairments were recorded during the period. In line with its new Climate Ambition announced on May 5, 2020, which aims at carbon neutrality, the Group has reviewed its oil assets that can be qualified as “stranded”, and therefore has decided to impair its oil sands assets in Canada. These impairments and revised assumptions are presented in note 3.4 Asset impairment.

Moreover, the value of petroleum and petrochemical inventories that are measured, according to the FIFO (First-in, First-Out) method, deteriorated as a result of the significant decrease in prices during the quarter, especially in the Refining and Chemicals business segment.

Different estimates, assumptions and judgments could significantly affect the information reported, and actual results may differ from the amounts included in the Consolidated Financial Statements and the Notes thereto.

Furthermore, when the accounting treatment of a specific transaction is not addressed by any accounting standard or interpretation, the management applies its judgment to define and apply accounting policies that provide information consistent with the general IFRS concepts: faithful representation, relevance and materiality.

33

2) Changes in the Group structure

2.1) Main acquisitions and divestments

➣ Integrated Gas, Renewables & Power
• On February 28, 2020, TOTAL finalized the acquisition of 37.4% interest in Adani Gas Limited, one of the four<br>main distributors of city gas in India. To acquire 37.4% of equity shares of Adani Gas Limited, TOTAL launched a tender offer to public shareholders on October 14, 2019 that ended on January 14, 2020, then acquired the remaining shares<br>from Adani on February 27 and 28, 2020.
--- ---
➣ Exploration & Production
--- ---
• On March 31, 2020, TOTAL finalized the sale of its subsidiary Total E&P Deep Offshore Borneo BV which holds<br>an 86.95% interest in Block CA1, located 100 kilometers off the coast of Brunei, to Shell.
--- ---

2.2) Divestment projects

➣ Exploration & Production
• In May 2020, TOTAL confirmed its commitment to completing the sale of its UK North Sea<br>non-core assets, first announced in July 2019. TOTAL and Norway-based private equity investor HitecVision have successfully renegotiated the financial terms of the deal to respond to the current<br>environment – while Petrogas is no longer part of the transaction. Subject to necessary approvals, the parties expect to complete the transaction by the third quarter of 2020.
--- ---
• At June 30, 2020, the assets and liabilities have been respectively classified in the consolidated balance sheet<br>in “asset classified as held for sale” for an amount of $421 million and “liabilities classified as held for sale” for an amount of $328 million. The concerned assets mainly include intangible and tangible assets.<br>
--- ---

3) Business segment information

Description of the business segments

Financial information by business segment is reported in accordance with the internal reporting system and shows internal segment information that is used to manage and measure the performance of TOTAL and which is reviewed by the main operational decision-making body of the Group, namely the Executive Committee.

The operational profit and assets are broken down by business segment prior to the consolidation and inter-segment adjustments.

Sales prices between business segments approximate market prices.

The organization of the Group’s activities is structured around the four followings segments:

- An Exploration & Production segment;
- An Integrated Gas, Renewables & Power segment comprising integrated gas (including LNG) and low carbon<br>electricity businesses. It includes the upstream and midstream LNG activity;
--- ---
- A Refining & Chemicals segment constituting a major industrial hub comprising the activities of refining,<br>petrochemicals and specialty chemicals. This segment also includes the activities of oil Supply, Trading and marine Shipping;
--- ---
- A Marketing & Services segment including the global activities of supply and marketing in the field of<br>petroleum products;
--- ---

In addition the Corporate segment includes holdings operating and financial activities.

34

Adjustment items

Performance indicators excluding the adjustment items, such as adjusted operating income, adjusted net operating income, and adjusted net income are meant to facilitate the analysis of the financial performance and the comparison of income between periods.

Adjustment items include:

(i) Special items

Due to their unusual nature or particular significance, certain transactions qualified as “special items” are excluded from the business segment figures. In general, special items relate to transactions that are significant, infrequent or unusual. However, in certain instances, transactions such as restructuring costs or assets disposals, which are not considered to be representative of the normal course of business, may be qualified as special items although they may have occurred within prior years or are likely to occur again within the coming years.

(ii) The inventory valuation effect

The adjusted results of the Refining & Chemicals and Marketing & Services segments are presented according to the replacement cost method. This method is used to assess the segments’ performance and facilitate the comparability of the segments’ performance with those of its competitors.

In the replacement cost method, which approximates the LIFO (Last-In, First-Out) method, the variation of inventory values in the statement of income is, depending on the nature of the inventory, determined using either the month-end prices differential between one period and another or the average prices of the period rather than the historical value. The inventory valuation effect is the difference between the results according to the FIFO (First-In, First-Out) and the replacement cost methods.

(iii) Effect of changes in fair value

The effect of changes in fair value presented as adjustment items reflects for some transactions differences between internal measure of performance used by TOTAL’s management and the accounting for these transactions under IFRS.

IFRS requires that trading inventories be recorded at their fair value using period end spot prices. In order to best reflect the management of economic exposure through derivative transactions, internal indicators used to measure performance include valuations of trading inventories based on forward prices.

TOTAL, in its trading activities, enters into storage contracts, which future effects are recorded at fair value in the Group’s internal economic performance. IFRS precludes recognition of this fair value effect.

Furthermore, TOTAL enters into derivative instruments to risk manage certain operational contracts or assets. Under IFRS, these derivatives are recorded at fair value while the underlying operational transactions are recorded as they occur. Internal indicators defer the fair value on derivatives to match with the transaction occurrence.

The adjusted results (adjusted operating income, adjusted net operating income, adjusted net income) are defined as replacement cost results, adjusted for special items and the effect of changes in fair value.

35

3.1) Information by business segment

1st half 2020 Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Non-Group sales 2,574 8,403 27,956 30,661 6 - 69,600
Intersegment sales 8,661 895 9,051 196 59 (18,862 ) -
Excise taxes - - (1,119 ) (8,342 ) - - (9,461 )
Revenues from sales 11,235 **** **** 9,298 **** **** 35,888 **** **** 22,515 **** **** 65 **** **** (18,862 ) **** 60,139 ****
Operating expenses (6,048 ) (8,398 ) (35,736 ) (21,730 ) (562 ) 18,862 (53,612 )
Depreciation, depletion and impairment of tangible assets and mineral interests (12,311 ) (1,616 ) (788 ) (473 ) (40 ) - (15,228 )
Operating income (7,124 ) **** (716 ) **** (636 ) **** 312 **** **** (537 ) **** - **** **** (8,701 )
Net income (loss) from equity affiliates and other items 440 420 (92 ) 32 164 - 964
Tax on net operating income (56 ) 330 203 (159 ) 2 - 320
Net operating income (6,740 ) **** 34 **** **** (525 ) **** 185 **** **** (371 ) **** - **** **** (7,417 )
Net cost of net debt (1,003 )
Non-controlling<br>interests 85
Net income - group share **** (8,335 )

All values are in US Dollars.

1st half 2020 (adjustments)(a) Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Non-Group sales - (16 ) - - - - (16 )
Intersegment sales - - - - - - -
Excise taxes - - - - - - -
Revenues from sales - **** **** (16 ) **** - **** **** - **** **** - **** **** - **** **** (16 )
Operating expenses (37 ) (318 ) (1,637 ) (341 ) (91 ) - (2,424 )
Depreciation, depletion and impairment of tangible assets and mineral interests (7,338 ) (953 ) - - - - (8,291 )
Operating income (b) (7,375 ) **** (1,287 ) **** (1,637 ) **** (341 ) **** (91 ) **** - **** **** (10,731 )
Net income (loss) from equity affiliates and other items 71 (292 ) (271 ) (5 ) - - (497 )
Tax on net operating income 70 374 426 100 12 - 982
Net operating income (b) (7,234 ) **** (1,205 ) **** (1,482 ) **** (246 ) **** (79 ) **** - **** **** (10,246 )
Net cost of net debt (68 )
Non-controlling<br>interests 72
Net income - group share **** (10,242 )
(a) Adjustments include special items,<br>inventory valuation effect and the effect of changes in fair value.
(b) Of which inventory valuation effect
- On operating income - - (1,604 ) (234 ) -
- On net operating income - - (1,371 ) (163 ) -
1st half 2020 (adjusted) Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Non-Group sales 2,574 8,419 27,956 30,661 6 - 69,616
Intersegment sales 8,661 895 9,051 196 59 (18,862 ) -
Excise taxes - - (1,119 ) (8,342 ) - - (9,461 )
Revenues from sales 11,235 **** **** 9,314 **** **** 35,888 **** **** 22,515 **** **** 65 **** **** (18,862 ) **** 60,155 ****
Operating expenses (6,011 ) (8,080 ) (34,099 ) (21,389 ) (471 ) 18,862 (51,188 )
Depreciation, depletion and impairment of tangible assets and mineral interests (4,973 ) (663 ) (788 ) (473 ) (40 ) - (6,937 )
Adjusted operating income 251 **** **** 571 **** **** 1,001 **** **** 653 **** **** (446 ) **** - **** **** 2,030 ****
Net income (loss) from equity affiliates and other items 369 712 179 37 164 - 1,461
Tax on net operating income (126 ) (44 ) (223 ) (259 ) (10 ) - (662 )
Adjusted net operating income 494 **** **** 1,239 **** **** 957 **** **** 431 **** **** (292 ) **** - **** **** 2,829 ****
Net cost of net debt (935 )
Non-controlling<br>interests 13
Adjusted net income - group share **** 1,907 ****
1st half 2020 Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Total expenditures 3,265 3,461 533 334 66 7,659
Total divestments 325 433 101 72 26 957
Cash flow from operating activities 4,833 900 (103 ) 420 (1,272 ) 4,778

All values are in US Dollars.

36

1st half 2019 Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Non-Group sales 4,067 10,208 44,220 43,950 2 - 102,447
Intersegment sales 15,302 1,259 16,310 301 63 (33,235 ) -
Excise taxes - - (1,537 ) (10,584 ) - - (12,121 )
Revenues from sales 19,369 **** **** 11,467 **** **** 58,993 **** **** 33,667 **** **** 65 **** **** (33,235 ) **** 90,326 ****
Operating expenses (8,234 ) (10,287 ) (56,502 ) (32,178 ) (406 ) 33,235 (74,372 )
Depreciation, depletion and impairment of tangible assets and mineral interests (5,216 ) (643 ) (763 ) (470 ) (35 ) - (7,127 )
Operating income 5,919 **** **** 537 **** **** 1,728 **** **** 1,019 **** **** (376 ) **** - **** **** 8,827 ****
Net income (loss) from equity affiliates and other items 367 1,041 260 101 27 - 1,796
Tax on net operating income (2,585 ) (623 ) (246 ) (334 ) 124 - (3,664 )
Net operating income 3,701 **** **** 955 **** **** 1,742 **** **** 786 **** **** (225 ) **** - **** **** 6,959 ****
Net cost of net debt (1,015 )
Non-controlling<br>interests (77 )
Net income - group share **** 5,867 ****
1st half 2019 (adjustments)(a) Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Non-Group sales - (86 ) - - - - (86 )
Intersegment sales - - - - - - -
Excise taxes - - - - - - -
Revenues from sales - **** **** (86 ) **** - **** **** - **** **** - **** **** - **** **** (86 )
Operating expenses - (112 ) 449 40 - - 377
Depreciation, depletion and impairment of tangible assets and mineral interests (43 ) (11 ) (10 ) - - - (64 )
Operating income (b) (43 ) **** (209 ) **** 439 **** **** 40 **** **** - **** **** - **** **** 227 ****
Net income (loss) from equity affiliates and other items - 413 (47 ) (7 ) - - 359
Tax on net operating income - (270 ) (121 ) (13 ) - - (404 )
Net operating income (b) (43 ) **** (66 ) **** 271 **** **** 20 **** **** - **** **** - **** **** 182 ****
Net cost of net debt (8 )
Non-controlling<br>interests 47
Net income - group share **** 221 ****
(a) Adjustments include special items,<br>inventory valuation effect and the effect of changes in fair value.
(b) Of which inventory valuation effect
- On operating income - - 486 40 -
- On net operating income - - 344 27 -
1st half 2019 (adjusted) Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Non-Group sales 4,067 10,294 44,220 43,950 2 - 102,533
Intersegment sales 15,302 1,259 16,310 301 63 (33,235 ) -
Excise taxes - - (1,537 ) (10,584 ) - - (12,121 )
Revenues from sales 19,369 **** **** 11,553 **** **** 58,993 **** **** 33,667 **** **** 65 **** **** (33,235 ) **** 90,412 ****
Operating expenses (8,234 ) (10,175 ) (56,951 ) (32,218 ) (406 ) 33,235 (74,749 )
Depreciation, depletion and impairment of tangible assets and mineral interests (5,173 ) (632 ) (753 ) (470 ) (35 ) - (7,063 )
Adjusted operating income 5,962 **** **** 746 **** **** 1,289 **** **** 979 **** **** (376 ) **** - **** **** 8,600 ****
Net income (loss) from equity affiliates and other items 367 628 307 108 27 - 1,437
Tax on net operating income (2,585 ) (353 ) (125 ) (321 ) 124 - (3,260 )
Adjusted net operating income 3,744 **** **** 1,021 **** **** 1,471 **** **** 766 **** **** (225 ) **** - **** **** 6,777 ****
Net cost of net debt (1,007 )
Non-controlling<br>interests (124 )
Adjusted net income - group share **** 5,646 ****
1st half 2019 Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Total expenditures 4,282 1,975 648 527 51 7,483
Total divestments 89 574 239 157 3 1,062
Cash flow from operating activities 7,704 1,533 1,120 843 (1,320 ) 9,880

All values are in US Dollars.

37

2nd quarter 2020 Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Non-Group sales 992 3,313 9,433 11,986 6 - 25,730
Intersegment sales 3,097 301 2,956 107 31 (6,492 ) -
Excise taxes - - (469 ) (3,699 ) - - (4,168 )
Revenues from sales 4,089 **** **** 3,614 **** **** 11,920 **** **** 8,394 **** **** 37 **** **** (6,492 ) **** 21,562 ****
Operating expenses (2,405 ) (3,406 ) (10,895 ) (7,931 ) (315 ) 6,492 (18,460 )
Depreciation, depletion and impairment of tangible assets and mineral interests (9,667 ) (1,282 ) (393 ) (229 ) (22 ) - (11,593 )
Operating income (7,983 ) **** (1,074 ) **** 632 **** **** 234 **** **** (300 ) **** - **** **** (8,491 )
Net income (loss) from equity affiliates and other items 17 21 (35 ) 22 40 - 65
Tax on net operating income 398 322 (132 ) (127 ) (26 ) - 435
Net operating income (7,568 ) **** (731 ) **** 465 **** **** 129 **** **** (286 ) **** - **** **** (7,991 )
Net cost of net debt (431 )
Non-controlling<br>interests 53
Net income - group share **** (8,369 )
2nd quarter 2020 (adjustments)(a) Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Non-Group sales - (18 ) - - - - (18 )
Intersegment sales - - - - - - -
Excise taxes - - - - - - -
Revenues from sales - **** **** (18 ) **** - **** **** - **** **** - **** **** - **** **** (18 )
Operating expenses (27 ) (199 ) (48 ) 5 (36 ) - (305 )
Depreciation, depletion and impairment of tangible assets and mineral interests (7,338 ) (953 ) - - - - (8,291 )
Operating income (b) (7,365 ) **** (1,170 ) **** (48 ) **** 5 **** **** (36 ) **** - **** **** (8,614 )
Net income (loss) from equity affiliates and other items (57 ) (217 ) (63 ) (5 ) - - (342 )
Tax on net operating income 63 330 1 - 12 - 406
Net operating income (b) (7,359 ) **** (1,057 ) **** (110 ) **** - **** **** (24 ) **** - **** **** (8,550 )
Net cost of net debt 33
Non-controlling<br>interests 22
Net income - group share **** (8,495 )
(a) Adjustments include special items,<br>inventory valuation effect and the effect of changes in fair value.
(b) Of which inventory valuation effect
- On operating income - - (26 ) (16 ) -
- On net operating income - - (86 ) (9 ) -
2nd quarter 2020 (adjusted) Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Non-Group sales 992 3,331 9,433 11,986 6 - 25,748
Intersegment sales 3,097 301 2,956 107 31 (6,492 ) -
Excise taxes - - (469 ) (3,699 ) - - (4,168 )
Revenues from sales 4,089 **** **** 3,632 **** **** 11,920 **** **** 8,394 **** **** 37 **** **** (6,492 ) **** 21,580 ****
Operating expenses (2,378 ) (3,207 ) (10,847 ) (7,936 ) (279 ) 6,492 (18,155 )
Depreciation, depletion and impairment of tangible assets and mineral interests (2,329 ) (329 ) (393 ) (229 ) (22 ) - (3,302 )
Adjusted operating income (618 ) **** 96 **** **** 680 **** **** 229 **** **** (264 ) **** - **** **** 123 ****
Net income (loss) from equity affiliates and other items 74 238 28 27 40 - 407
Tax on net operating income 335 (8 ) (133 ) (127 ) (38 ) - 29
Adjusted net operating income (209 ) **** 326 **** **** 575 **** **** 129 **** **** (262 ) **** - **** **** 559 ****
Net cost of net debt (464 )
Non-controlling<br>interests 31
Adjusted net income - group share **** 126 ****
2nd quarter 2020 Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Total expenditures 1,606 1,170 307 174 21 3,278
Total divestments 204 89 22 26 9 350
Cash flow from operating activities 910 1,389 1,080 819 (719 ) 3,479

All values are in US Dollars.

38

2nd quarter 2019 Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Non-Group sales 2,273 3,789 22,509 22,671 - - 51,242
Intersegment sales 7,586 632 8,293 139 36 (16,686 ) -
Excise taxes - - (761 ) (5,279 ) - - (6,040 )
Revenues from sales 9,859 **** **** 4,421 **** **** 30,041 **** **** 17,531 **** **** 36 **** **** (16,686 ) **** 45,202 ****
Operating expenses (4,205 ) (3,878 ) (29,168 ) (16,844 ) (229 ) 16,686 (37,638 )
Depreciation, depletion and impairment of tangible assets and mineral interests (2,687 ) (328 ) (389 ) (237 ) (20 ) - (3,661 )
Operating income 2,967 **** **** 215 **** **** 484 **** **** 450 **** **** (213 ) **** - **** **** 3,903 ****
Net income (loss) from equity affiliates and other items 173 661 111 111 26 - 1,082
Tax on net operating income (1,161 ) (450 ) 46 (170 ) 64 - (1,671 )
Net operating income 1,979 **** **** 426 **** **** 641 **** **** 391 **** **** (123 ) **** - **** **** 3,314 ****
Net cost of net debt (510 )
Non-controlling<br>interests (48 )
Net income - group share **** 2,756 ****
2nd quarter 2019 (adjustments)(a) Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Non-Group sales - (59 ) - - - - (59 )
Intersegment sales - - - - - - -
Excise taxes - - - - - - -
Revenues from sales - **** **** (59 ) **** - **** **** - **** **** - **** **** - **** **** (59 )
Operating expenses - (54 ) (43 ) (34 ) - - (131 )
Depreciation, depletion and impairment of tangible assets and mineral interests (43 ) (11 ) (10 ) - - - (64 )
Operating income (b) (43 ) **** (124 ) **** (53 ) **** (34 ) **** - **** **** - **** **** (254 )
Net income (loss) from equity affiliates and other items - 407 (49 ) (7 ) - - 351
Tax on net operating income - (286 ) 28 9 - - (249 )
Net operating income (b) (43 ) **** (3 ) **** (74 ) **** (32 ) **** - **** **** - **** **** (152 )
Net cost of net debt (4 )
Non-controlling<br>interests 25
Net income - group share **** (131 )
(a) Adjustments include special items,<br>inventory valuation effect and the effect of changes in fair value.
(b) Of which inventory valuation effect
- On operating income - - (6 ) (34 ) -
- On net operating income - - (1 ) (25 ) -
2nd quarter 2019 (adjusted) Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Non-Group sales 2,273 3,848 22,509 22,671 - - 51,301
Intersegment sales 7,586 632 8,293 139 36 (16,686 ) -
Excise taxes - - (761 ) (5,279 ) - - (6,040 )
Revenues from sales 9,859 **** **** 4,480 **** **** 30,041 **** **** 17,531 **** **** 36 **** **** (16,686 ) **** 45,261 ****
Operating expenses (4,205 ) (3,824 ) (29,125 ) (16,810 ) (229 ) 16,686 (37,507 )
Depreciation, depletion and impairment of tangible assets and mineral interests (2,644 ) (317 ) (379 ) (237 ) (20 ) - (3,597 )
Adjusted operating income 3,010 **** **** 339 **** **** 537 **** **** 484 **** **** (213 ) **** - **** **** 4,157 ****
Net income (loss) from equity affiliates and other items 173 254 160 118 26 - 731
Tax on net operating income (1,161 ) (164 ) 18 (179 ) 64 - (1,422 )
Adjusted net operating income 2,022 **** **** 429 **** **** 715 **** **** 423 **** **** (123 ) **** - **** **** 3,466 ****
Net cost of net debt (506 )
Non-controlling<br>interests (73 )
Adjusted net income - group share **** 2,887 ****
2nd quarter 2019 Integrated Gas,<br><br><br>Renewables<br> <br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Intercompany Total
(M)
Total expenditures 2,257 857 363 383 36 3,896
Total divestments 60 349 70 85 1 565
Cash flow from operating activities 3,768 641 1,658 611 (427 ) 6,251

All values are in US Dollars.

39

3.2) Reconciliation of the information by business segment with consolidated financial statements

1st half 2020 Adjustments^(a)^ Consolidated<br><br><br>statement of<br> <br>income
(M)
Sales 69,616 **** **** (16 ) **** 69,600 ****
Excise taxes (9,461 ) - (9,461 )
Revenues from sales 60,155 (16 ) 60,139
Purchases net of inventory variation (37,949 ) (2,144 ) (40,093 )
Other operating expenses (12,985 ) (280 ) (13,265 )
Exploration costs (254 ) - (254 )
Depreciation, depletion and impairment of tangible assets and mineral interests (6,937 ) (8,291 ) (15,228 )
Other income 820 122 942
Other expense (294 ) (234 ) (528 )
Financial interest on debt (1,094 ) (5 ) (1,099 )
Financial income and expense from cash & cash equivalents (13 ) (92 ) (105 )
Cost of net debt (1,107 ) (97 ) (1,204 )
Other financial income 607 - 607
Other financial expense (341 ) (1 ) (342 )
Net income (loss) from equity affiliates 669 (384 ) 285
Income taxes (490 ) 1,011 521
Consolidated net income 1,894 **** **** (10,314 ) **** (8,420 )
Group share 1,907 (10,242 ) (8,335 )
Non-controlling interests (13 ) (72 ) (85 )
(a) Adjustments include special items, inventory valuation effect and the effect of changes<br>in fair value.
1st half 2019 Adjustments^(a)^ Consolidated<br><br><br>statement of<br> <br>income
(M)
Sales 102,533 **** **** (86 ) **** 102,447 ****
Excise taxes (12,121 ) - (12,121 )
Revenues from sales 90,412 (86 ) 90,326
Purchases net of inventory variation (60,533 ) 422 (60,111 )
Other operating expenses (13,758 ) (45 ) (13,803 )
Exploration costs (458 ) - (458 )
Depreciation, depletion and impairment of tangible assets and mineral interests (7,063 ) (64 ) (7,127 )
Other income 453 115 568
Other expense (190 ) (208 ) (398 )
Financial interest on debt (1,121 ) (8 ) (1,129 )
Financial income and expense from cash & cash equivalents (70 ) - (70 )
Cost of net debt (1,191 ) (8 ) (1,199 )
Other financial income 486 - 486
Other financial expense (383 ) - (383 )
Net income (loss) from equity affiliates 1,071 452 1,523
Income taxes (3,076 ) (404 ) (3,480 )
Consolidated net income 5,770 **** **** 174 **** **** 5,944 ****
Group share 5,646 221 5,867
Non-controlling interests 124 (47 ) 77
(a) Adjustments include special items, inventory valuation effect and the effect of changes<br>in fair value.

All values are in US Dollars.

40

Consolidated
2^nd^ quarter 2020 statement
(M$) Adjusted Adjustments^(a)^ of income
Sales **** 25,748 **** **** (18 ) **** 25,730 ****
Excise taxes (4,168 ) - (4,168 )
Revenues from sales 21,580 (18 ) 21,562
Purchases net of inventory variation (11,842 ) (183 ) (12,025 )
Other operating expenses (6,199 ) (122 ) (6,321 )
Exploration costs (114 ) - (114 )
Depreciation, depletion and impairment of tangible assets and mineral interests (3,302 ) (8,291 ) (11,593 )
Other income 240 122 362
Other expense (103 ) (5 ) (108 )
Financial interest on debt (527 ) (3 ) (530 )
Financial income and expense from cash & cash equivalents (3 ) 53 50
Cost of net debt (530 ) 50 (480 )
Other financial income 419 - 419
Other financial expense (160 ) (1 ) (161 )
Net income (loss) from equity affiliates 11 (458 ) (447 )
Income taxes 95 389 484
Consolidated net income **** 95 **** **** (8,517 ) **** (8,422 )
Group share 126 (8,495 ) (8,369 )
Non-controlling interests (31 ) (22 ) (53 )
(a) Adjustments include special items, inventory valuation effect and the effect of changesin fair value.
Consolidated
2^nd^ quarter 2019 statement
(M$) Adjusted Adjustments^(a)^ of income
Sales **** 51,301 **** **** (59 ) **** 51,242 ****
Excise taxes (6,040 ) - (6,040 )
Revenues from sales 45,261 (59 ) 45,202
Purchases net of inventory variation (30,295 ) (95 ) (30,390 )
Other operating expenses (7,042 ) (36 ) (7,078 )
Exploration costs (170 ) - (170 )
Depreciation, depletion and impairment of tangible assets and mineral interests (3,597 ) (64 ) (3,661 )
Other income 253 68 321
Other expense (117 ) (72 ) (189 )
Financial interest on debt (564 ) (4 ) (568 )
Financial income and expense from cash & cash equivalents (42 ) - (42 )
Cost of net debt (606 ) (4 ) (610 )
Other financial income 326 - 326
Other financial expense (188 ) - (188 )
Net income (loss) from equity affiliates 457 355 812
Income taxes (1,322 ) (249 ) (1,571 )
Consolidated net income **** 2,960 **** **** (156 ) **** 2,804 ****
Group share 2,887 (131 ) 2,756
Non-controlling interests 73 (25 ) 48

(a) Adjustments include special items, inventory valuation effect and the effect of changes in fair value.

41

3.3) Adjustment items

The detail of the adjustment items is presented in the table below.

ADJUSTMENTS TO OPERATING INCOME
(M) Exploration<br><br><br>&<br> <br>Production Integrated<br><br><br>Gas,<br> <br>Renewables<br><br><br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Total
2nd quarter 2020 - - (26 ) (16 ) - (42 )
- (100 ) - - - (100 )
- (10 ) (7 ) - - (17 )
(7,338 ) (953 ) - - - (8,291 )
(27 ) (107 ) (15 ) 21 (36 ) (164 )
Total **** (7,365 ) **** (1,170 ) **** (48 ) **** 5 **** **** (36 ) **** (8,614 )
2nd quarter 2019 - - (6 ) (34 ) - (40 )
- (59 ) - - - (59 )
- - - - - -
(43 ) (11 ) (10 ) - - (64 )
- (54 ) (37 ) - - (91 )
Total **** (43 ) **** (124 ) **** (53 ) **** (34 ) **** - **** **** (254 )
1st half<br>2020 - - (1,604 ) (234 ) - (1,838 )
- (98 ) - - - (98 )
(10 ) (18 ) (7 ) - - (35 )
(7,338 ) (953 ) - - - (8,291 )
(27 ) (218 ) (26 ) (107 ) (91 ) (469 )
Total **** (7,375 ) **** (1,287 ) **** (1,637 ) **** (341 ) **** (91 ) **** (10,731 )
1st half<br>2019 - - 486 40 - 526
- (86 ) - - - (86 )
- - - - - -
(43 ) (11 ) (10 ) - - (64 )
- (112 ) (37 ) - - (149 )
Total **** (43 ) **** (209 ) **** 439 **** **** 40 **** **** - **** **** 227 ****

All values are in US Dollars.

42

ADJUSTMENTS TO NET INCOME, GROUP SHARE
(M) Exploration<br><br><br>&<br> <br>Production Integrated<br><br><br>Gas,<br> <br>Renewables<br><br><br>& Power Refining<br><br><br>&<br> <br>Chemicals Marketing<br><br><br>&<br> <br>Services Corporate Total
2nd quarter 2020 - - (83 ) (11 ) - (94 )
- (80 ) - - - (80 )
- (10 ) (10 ) - - (20 )
(7,272 ) (829 ) - - - (8,101 )
- - - - - -
(77 ) (131 ) (14 ) 10 12 (200 )
Total **** (7,349 ) **** (1,050 ) **** (107 ) **** (1 ) **** 12 **** **** (8,495 )
2nd quarter 2019 - - (3 ) (25 ) - (28 )
- (47 ) - - - (47 )
- (14 ) (17 ) - - (31 )
(43 ) (6 ) (8 ) - - (57 )
- - - - - -
- 86 (48 ) (6 ) - 32
Total **** (43 ) **** 19 **** **** (76 ) **** (31 ) **** - **** **** (131 )
1st half<br>2020 - - (1,364 ) (144 ) - (1,508 )
- (79 ) - - - (79 )
(3 ) (22 ) (75 ) - - (100 )
(7,272 ) (829 ) - - - (8,101 )
- - - - - -
51 (256 ) (36 ) (71 ) (142 ) (454 )
Total **** (7,224 ) **** (1,186 ) **** (1,475 ) **** (215 ) **** (142 ) **** (10,242 )
1st half<br>2019 - - 341 19 - 360
- (69 ) - - - (69 )
- (16 ) (17 ) - - (33 )
(43 ) (6 ) (8 ) - - (57 )
- - - - - -
- 74 (48 ) (6 ) - 20
Total **** (43 ) **** (17 ) **** 268 **** **** 13 **** **** - **** **** 221 ****

All values are in US Dollars.

3.4) Asset impairment

Impairments relate to certain cash-generating units (CGUs) for which indicators of impairment have been identified, due to changes in operating conditions or the economic environment of the activities concerned.

For the calculation of impairment tests of its assets, TOTAL set in 2019 a price scenario with a 2050 Brent price of 50$/b, in line with the “well below 2°C” scenario of the IEA. This scenario is described in the Universal Registration Document (note 3 of chapter 8).

Given the drop of the oil price in 2020, TOTAL decided to revise the price assumptions over the next years and selected the following profile of the Brent price: 35$/b in 2020, 40$/b in 2021, 50$/b in 2022, 60$/b in 2023; gas prices have been adjusted accordingly.

For the longer term, TOTAL maintains its analysis, that the weakness of investments in the hydrocarbon sector since 2015 accentuated by the health and economic crisis of 2020 will result by 2025 in insufficient worldwide production capacities and a rebound in prices. Beyond 2030, given technological developments, particularly in the transport sector, TOTAL anticipates oil demand will have reached its peak and Brent prices should tend toward the long-term price of 50$/b, in line with the IEA’s SDS scenario.

The average Brent prices over the period 2020-2050 thus stands at 56.8$2020/b.

The future operational costs were determined by taking into account the existing technologies, the fluctuation of prices for petroleum services in line with market developments and the internal cost reduction programs effectively implemented.

The future cash flows are estimated over a period consistent with the life of the assets of the CGUs. They are prepared post-tax and take into account specific risks related to the CGUs’ assets. They are discounted using a 7% post-tax discount rate, this rate being the weighted-average cost of capital estimated from historical market data.

The CGUs of the Exploration & Production segment are defined as oil and gas fields or groups of oil and gas fields with industrial assets enabling the production, treatment and evacuation of the oil and gas. For the first half year 2020, impairments of assets were recognized over CGUs of the Exploration & Production segment for an impact of $(1,878) million in operating income and $(1,798) million in net income, Group share. Impairments recognized in 2020 mainly relate to Canadian oil sands assets.

The CGUs of the Integrated Gas, Renewables & Power segment are subsidiaries or groups of subsidiaries organized by activity or geographical area, and by fields or groups of fields for upstream LNG activities. For the first half year 2020, the Group recorded impairments on CGUs in the Integrated Gas, Renewables & Power segment for $(953) million in operating income and $(829) million in net income, Group share. Impairments recognized in 2020 relate to assets located in Australia.

The CGUs of the Refining & Chemicals segment are defined as legal entities with operational activities for refining and petrochemicals activities. No significant impairment has been recorded for the CGUs of the Refining & Chemicals segment in the first half year 2020.

The CGUs of the Marketing & Services segment are subsidiaries or groups of subsidiaries organized by geographical area. No significant impairment has been recorded for the CGUs of the Marketing & Services segment in the first half year 2020.

In addition, in line with its new Climate Ambition announced on May 5, 2020, which aims at carbon neutrality, TOTAL has reviewed its oil assets that can be qualified as stranded, meaning with reserves beyond 20 years and high production costs, whose overall reserves may therefore not be produced by 2050. The only projects identified in this category are the Canadian oil sands projects of Fort Hills and Surmont.

For impairment calculations, TOTAL has decided to take into account only proven reserves on these two assets – unlike general practice which considers so-called proven and probable reserves. This leads to an additional exceptional asset impairment of $(5,460) million in operating income and $(5,474) million in net income, Group share.

Overall, asset impairments were recorded on the second quarter 2020 for an amount of $(8,291) million in operating income and $(8,101) million in net income, Group share, including $(6,988) million on Canadian oil sands assets alone.

These impairments were qualified as adjustment items of the operating income and net income, Group share.

As for sensitivities of the Exploration & Production segment:

- a decrease by one point in the discount rate would have a positive impact of approximately $0.2 billion on impairments<br>recorded in operating income and $0.2 billion on impairments recorded in net income, Group share;
- an increase by one point in the discount rate would have an additional negative impact of approximately $1.5 billion<br>on impairments recorded in operating income and $1 billion on impairments recorded in net income, Group share;
--- ---
- a variation of (10)% of the oil and gas prices over the duration of the plan would have an additional negative impact<br>of approximately $2.9 billion on impairments recorded this quarter in operating income and $1.7 billion on impairments recorded in net income, Group share.
--- ---

As for sensitivities of upstream LNG activities and CGUs including a material goodwill:

- a decrease by one point in the discount rate would have a positive impact of approximately $0.6 billion on impairments<br>recorded in operating income and $0.5 billion on impairments recorded in net income, Group share;
- an increase by one point in the discount rate would have an additional negative impact of approximately $0.8 billion<br>on impairments recorded in operating income and $0.6 billion on impairments recorded in net income, Group share;
--- ---
- a variation of (10)% of the oil and gas prices over the duration of the plan would have an additional negative impact<br>of approximately $1.9 billion on impairments recorded this quarter in operating income and $1.5 billion on impairments recorded in net income, Group share.
--- ---

43

4) Shareholders’ equity

Treasury shares (TOTAL shares held directly by TOTAL SE)

In accordance with the shareholder return policy over 2018-2020 implemented since February 2018, the Company repurchased its own shares until the announcement of the suspension of the share buyback program on March 23, 2020, in the context of the sharp decrease in the crude oil price.

TOTAL SE has also repurchased shares to be allocated to free share grant plans.

As of June 30, 2020, TOTAL SE directly holds 28,706,598 TOTAL shares, representing 1.10% of its share capital, which are deducted from the consolidated shareholders’ equity and allocated as follows:

Shares to be cancelled(1) 23,284,409
including shares repurchased during Q4 2019 11,051,144
Including shares repurchased during Q1 2020 12,233,265
Shares to be allocated as part offree share grant plans (2) 5,422,189
including the 2017 Plan 4,356,044
including the 2018 Plan 1,001,529
including shares intended to be allocated to new share purchase options plans or to new<br>share performance plans 64,616
Total Treasury shares(1)+(2) 28,706,598

Dividend

The Shareholders’ meeting of May 29, 2020 approved the distribution of a dividend of €2.68 per share for the 2019 fiscal year and the payment of a final dividend of €0.68 per share given the three interim dividends that had already been paid. The Board of directors of May 4, 2020 decided to offer the shareholders the option to receive the final 2019 dividend in cash or in new shares of the Company with a discount of 10%, each choice being exclusive of the other.

Dividend 2019 First interim Second interim Third interim Final
Amount €0.66 €0.66 €0.68 €0.68
Set date April 25, 2019 July 24, 2019 October 29, 2019 May 29, 2020
Ex-dividend date September 27,<br>2019 January 6, 2020 March 30, 2020 June 29, 2020
Payment date October 1^st^, 2019 January 8, 2020 April 1^st^, 2020 July 16, 2020
Option for the scrip dividend
Issue price - - - €28.80^(1)^
Number of sharessubscribed - - - 38,063,688

^(1)^This price is equal to 90% of the average Euronext Paris opening prices of the TOTAL shares for the twenty trading days preceding the Shareholders’ Meeting of May 29, 2020, reduced by the amount of the final dividend and rounded up to the nearest cent.

Furthermore, the Board of directors, during its July 29, 2020 meeting, set the second interim dividend for the fiscal year 2020 at €0.66 per share, equal to the first interim dividend. The ex-dividend date of this interim dividend will be on January 4, 2021 and it will be paid in cash exclusively on January 11, 2021.

Dividend 2020 First interim Second interim
Amount €0.66 €0.66
Set date May 4, 2020 July 29, 2020
Ex-dividend date September 25, 2020 January 4, 2021
Payment date October 2, 2020 January 11, 2021

44

Earnings per share in Euro

Earnings per share in Euro, calculated from the earnings per share in U.S. dollars converted at the average Euro/USD exchange rate for the period, amounted to €(2.98) per share for the 2^nd^ quarter 2020 (€(0.01) per share for the 1^st^ quarter 2020 and €0.89 per share for the 2^nd^ quarter 2019). Diluted earnings per share calculated using the same method amounted to €(2.98) per share for the 2^nd^ quarter 2020 (€(0.01) per share for the 1st quarter 2020 and €0.89 per share for the 2^nd^ quarter 2019).

Earnings per share are calculated after remuneration of perpetual subordinated notes.

Other comprehensive income

Detail of other comprehensive income is presented in the table below:

(M$) 1^st^ half 2020 1^st^ half 2019
Actuarial gains and losses (223 ) (59 )
Change in fair value of investments in equity instruments (74 ) 107
Tax effect 86 14
Currency translation adjustment generated by the parent<br>company (196 ) (474 )
Sub-total items not potentially reclassifiable to profit andloss (407 ) (412 )
Currency translation adjustment (940 ) 187 ****
- unrealized gain/(loss) of the period (907 ) 233
- less gain/(loss) included in net income 33 46
Cash flow hedge (1,293 ) (373 )
- unrealized gain/(loss) of the period (1,317 ) (303 )
- less gain/(loss) included in net income (24 ) 70
Variation of foreign currency basis spread 70 **** 54 ****
- unrealized gain/(loss) of the period 42 25
- less gain/(loss) included in net income (28 ) (29 )
Share of other comprehensive income of<br><br><br>equity affiliates, net amount (927 ) 253 ****
- unrealized gain/(loss) of the period (936 ) 265
- less gain/(loss) included in net income (9 ) 12
Other 3 **** 2 ****
Tax effect 367 **** 107 ****
Sub-total items potentially reclassifiable to profit andloss (2,720 ) 230 ****
Total other comprehensive income, netamount (3,127 ) (182 )

45

Tax effects relating to each component of other comprehensive income are as follows:

1^st^ half 2020 1^st^ half 2019
(M$) Pre-tax    amount Tax effect Net amount Pre-taxamount Tax effect Net amount
Actuarial gains and losses (223 ) 56 (167 ) (59 ) 16 (43 )
Change in fair value of investments in equity instruments (74 ) 30 (44 ) 107 (2 ) 105
Currency translation adjustment generated by the parent company (196 ) - (196 ) (474 ) - (474 )
Sub-total items not potentially reclassifiable to profit andloss **** (493 ) **** 86 **** **** (407 ) **** (426 ) **** 14 **** **** (412 )
Currency translation adjustment (940 ) - (940 ) 187 - 187
Cash flow hedge (1,293 ) 389 (904 ) (373 ) 125 (248 )
Variation of foreign currency basis spread 70 (22 ) 48 54 (18 ) 36
Share of other comprehensive income of equity affiliates, net amount (927 ) - (927 ) 253 - 253
Other 3 - 3 2 - 2
Sub-total items potentially reclassifiable to profit andloss **** (3,087 ) **** 367 **** **** (2,720 ) **** 123 **** **** 107 **** **** 230 ****
Totalother comprehensive income **** (3,580 ) **** 453 **** **** (3,127 ) **** (303 ) **** 121 **** **** (182 )

5) Financial debt

The Group has issued bonds during the first six months of 2020:

- Bond 1.491% maturing in April 2027 (EUR 1,500 million);
- Bond 1.994% maturing in April 2032 (EUR 1,500 million);
--- ---
- Bond 0.952% maturing in May 2031 (EUR 500 million);
--- ---
- Bond 1.618% maturing in May 2040 (EUR 1,000 million);
--- ---
- Bond 3.127% maturing in May 2050 (USD 2,500 million);
--- ---
- Bond 2.986% maturing in June 2041 (USD 800 million);
--- ---
- Bond 3.386% maturing in June 2060 (USD 800 million).
--- ---

The Group reimbursed bonds during the first six months of 2020:

- Bond 4.750% issued in 2014 and maturing in January 2020 (NZD 100 million);
- Bond 2.125% issued in 2014 and maturing in January 2020 (CAD 100 million);
--- ---
- Bond Euribor 3 months + 30 basis points issued in 2014 and maturing in March 2020 (EUR 1,000 million);<br>
--- ---
- Bond Euribor 3 months + 31 basis points issued in 2013 and maturing in May 2020 (EUR 300 million);<br>
--- ---
- Bond 4.450% issued in 2010 and maturing in June 2020 (USD 1,250 million).
--- ---

In April 2020, the Group has also put in place a new committed syndicated credit line with banking counterparties for an amount of USD 6,350 million and with a 12-month tenor (with the option to extend twice by a further 6 months at TOTAL’s hand).

46

6) Related parties

The related parties are principally equity affiliates and non-consolidated investments.

There were no major changes concerning transactions with related parties during the first six months of 2020.

7) Other risks and contingent liabilities

TOTAL is not currently aware of any exceptional event, dispute, risks or contingent liabilities that could have a material impact on the assets and liabilities, results, financial position or operations of the Group, other than those mentioned below.

Health and oil crises

During the second quarter, the Group faced exceptional circumstances: the COVID-19 health crisis with its impact on the global economy and the oil market crisis with Brent falling sharply to 30 $/b on average, gas prices dropping to historic lows and refining margins collapsing due to weak demand.

Oil prices strengthened since the beginning of June, reaching around 40$/b, benefiting from strong compliance with the OPEC+ quotas and the decline of hydrocarbon production in the United States and Canada as well as a recovery in demand.

The oil environment, however, remains volatile, given the uncertainty around the extent and speed of the global economic recovery post-Covid-19.

The Group demonstrates discipline in the implementation of its 2020 action plan:

- Net investments below $14 billion,
- Savings of $1 billion on operating costs compared to 2019.
--- ---

TOTAL will continue to profitably grow in low carbon electricity, particularly in renewables, with close to $2 billion of investments in 2020.

In LNG, TOTAL anticipates significant deferred liftings in the third quarter and expects the decline in oil prices observed in the second quarter to have an impact on long-term LNG contract prices in the second half of the year.

Considering the implementation of the OPEC+ quotas and the situation in Libya, the Group now expects 2020 production to be between 2.9 Mboe/d and 2.95 Mboe/d, with a low point in the third quarter during the summer season. The ramp up of Iara’s second FPSO in Brazil will contribute to production growth in the last part of the year. In the Downstream, high inventory levels continue to weigh on refining margins and utilization rates. In Marketing, activity in Europe returned to 90% of its pre-crisis level since June and the Group anticipates that it will remain at a comparable level in the coming months.

The Group’s priority is to generate a level of cash flow that allows it to continue to invest in profitable projects, to preserve an attractive shareholder return and to maintain a strong balance sheet. To this end, the Group’s teams are focused on the four priorities of HSE, operational excellence, cost reduction and cash flow generation.

Yemen

In Yemen, the deterioration of security conditions in the vicinity of the Balhaf site caused the company Yemen LNG, in which the Group holds a stake of 39.62%, to stop its commercial production and export of LNG and to declare force majeure to its various stakeholders in 2015. The plant has been put in preservation mode.

8) Post-closing events

There was no post closing event.

47

EX-99.2

Exhibit 99.2

RECENT DEVELOPMENTS

“TOTAL” or the “Group” as used in this exhibit refer to TOTAL SE collectively with its direct and indirect consolidated subsidiaries located in or outside of France.

Total Gabon divests its portfolio of mature non-operated assets

On July 30, 2020, TOTAL announced that its 58% owned affiliate Total Gabon signed an agreement with Perenco to divest its interests in seven mature non-operated offshore fields, along with its interests and operatorship in the Cap Lopez oil terminal. The transaction remains subject to approval by the Gabonese authorities.

The price to be paid by Perenco is expected to be between $290 million and $350 million, depending on future Brent prices. The production divested by Total Gabon amounted to approximately 8,000 SEC barrels of oil per day in 2019.

List of assets included in the transaction
Area Field Total Gabon’s<br> <br>Interests Total Gabon’sinterest after thetransaction Operator
Grondin Grondin 65.275% 0% Perenco Oil &<br> <br>Gas Gabon
Gonelle 65.275% 0%
Barbier 65.275% 0%
Mandaros 65.275% 0%
Torpille Girelle 65.275% 0%
Pageau 65.275% 0%
Hylia 37.5% 0%
Cap Lopez oil terminal 100% 0% Total Gabon

TOTAL announces third significant discovery in Block 58 offshore Suriname

On July 30, 2020, TOTAL announced that it and Apache Corporation have made a significant third discovery with the Kwaskwasi-1 well, in Block 58 off the coast of Suriname. This follows previous discoveries at Maka Central in January and Sapakara West in April 2020.

The Kwaskwasi-1 exploration well was drilled by Apache, as operator with 50% working interest, with TOTAL as the joint venture partner with 50% working interest. The next and fourth exploration well is expected to be drilled should be back-to-back on the Keskesi prospect. TOTAL is expected to take over as operator of the Block after the drilling of the fourth well.

In early 2021, an appraisal campaign is expected to be carried out to better characterize the 2020 discoveries, along with an additional exploration campaign.

TOTAL maintains the second 2020 interim dividend at €0.66/share

The Board of Directors met on July 29, 2020, and declared the distribution of the second 2020 interim dividend at €0.66/share, stable compared to the first 2020 interim dividend. This interim dividend will be paid in cash exclusively, according to the following timetable:

Shareholders ADS holders
Ex-dividend date January 4, 2021 December 30, 2020
Payment date January 11, 2021 January 25, 2021

Short term price revision and Climate Ambition: TOTALannounces exceptional $8 billion asset impairments including $7 billion in Canadian oil sands

For the calculation of impairment tests of its assets, TOTAL set in 2019 a price scenario with a 2050 Brent price of 50$/b, in line with the “well below 2 °C” scenario of the International Energy Agency (IEA) This scenario is described in the 2019 Annual Report on Form 20-F (note 3 of Chapter 8 of Exhibit 15.1).

Given the drop in the oil price in 2020, TOTAL decided to revise the price assumptions over the next years and selected the following profile for the Brent price: 35$/b in 2020, 40$/b in 2021, 50$/b in 2022 and 60$/b in 2023; gas prices have been adjusted accordingly.

For the longer term, TOTAL maintains its analysis that the weakness of investments in the hydrocarbon sector since 2015 accentuated by the health and economic crisis of 2020 by is expected to result by 2025 in insufficient worldwide production capacities and a rebound in prices. Beyond 2030, given technological developments, particularly in the transportation sector, TOTAL anticipates oil demand will have reached its peak and Brent prices should tend toward the long-term price of 50$/b, in line with the IEA SDS scenario.

The average Brent price over the period 2020-2050 thus stands at 56.8$2020/b.

As a result of this short-term price revision, TOTAL recognized in the second quarter 2020 an exceptional asset impairment charge of $2.6 billion, mainly on Canadian oil sands assets for $1.5 billion and LNG assets in Australia for $0.8 billion, both being giant projects with high construction costs. These limited impacts (less than 2% of TOTAL’s overall assets) reflect the strength of the Group’s balance sheet.

In addition, in line with its new Climate Ambition announced on May 5, 2020, which aims at carbon neutrality, TOTAL has reviewed its oil assets that can be qualified as “stranded”, meaning with reserves beyond 20 years and high production costs, whose overall reserves may therefore not be produced by 2050. The only projects identified in this category are the Canadian oil sands projects Fort Hills and Surmont.

For impairment calculations, TOTAL’s Board of Directors has decided to take into account only proven reserves on these 2 assets – unlike the general practice which considers both proven and probable reserves. This leads to an additional exceptional asset impairment of $5.5 billion. Consequently, TOTAL will take into account for its proven and probable reserves in Canada only the proved reserves. The proved and probable reserves life of the Group is thus reduced from 19.0 to 18.5 years. In addition, TOTAL will not approve any new project of capacity increase on these Canadian oil sands assets. Finally, still consistent with the Climate Ambition announced on May 5, 2020, TOTAL decided to withdraw from the Canadian Association of Petroleum Producers considering the misalignment between their public positions and those of the Group.

Overall, the exceptional asset impairments that will therefore be taken into account in the second quarter of 2020 amount to $8.1 billion, including $7 billion on Canadian oil sands assets alone, impacting the gearing ratio of the Group by 1.3%.

Egypt: TOTAL announces gasdiscovery in shallow waters

On July 28, 2020, TOTAL announced that TOTAL, bp and Eni (as the Operator) have made a gas discovery with the Bashrush well on the North El Hammad license, located eleven kilometers off the Egyptian coast.

The well encountered gas in high quality sandstones of the Abu Madi formation. A production test was conducted with flow rates of up to 32 million standard cubic feet of gas per day (MMscf/d), limited by testing facilities. It is estimated that future deliverability per well could be up to 100 MMscf/d, along with up to 800 barrels of condensate per day. Future plans foresee development through tie-in to nearby existing infrastructures.

TOTAL holds a working interest of 25% in the North El Hammad license, alongside operator ENI (37.5%) and BP (37.5%).

TOTAL and Indian Oil Form Joint Company in India to offer high-quality bitumenderivatives

On July 27, 2020, TOTAL announced the formation with Indian Oil Corporation, India’s largest refiner and marketer of petroleum products, of a 50/50 joint venture (JV) company that will manufacture and market high-quality bitumen derivatives and specialty products for the growing road-building industry in India.

The two companies have already an established business relationship in India, notably in LPG and fuel additives businesses.

The new JV will combine the R&D and marketing strengths of both Indian Oil and Total to manufacture and market innovative bitumen formulations and superior quality products such as polymer-modified bitumen, crumb rubber modified bitumen, bitumen emulsions and other specialty products. The JV plans to set up manufacturing units across the country with cost-effective logistics solutions, keeping innovation, safety and sustainability at the helm of its operations. The JV will also explore possibilities to cater to other South Asian markets.

The demand for aggregate material and manufactured material for the highway construction and rehabilitation sector in India is very high, especially for good-quality bitumen derivatives. The JV intends to offer high-spec products using sustainable technologies.

United Kingdom: TOTAL Sells the Lindsey Refinery

On July 27, 2020, TOTAL announced it signed an agreement to sell the Lindsey refinery and its associated logistic assets, as well as all of the related rights and obligations, to the Prax Group.

Located in Immingham (Lincolnshire) in England, the Lindsey refinery has an annual production capacity of 5.4 million tons. This acquisition will make Prax – an independent British group specialising in the trade and sale of oil products and in possession of a growing network of 150 service stations and numerous supply chain assets – more integrated and competitive in the United Kingdom and will secure its local supply.

The sale is expected to be finalized by the end of the year, once the conditions of the sale have been satisfied.

TOTAL announced the signing of Mozambique LNG project financing

On July 17, 2020, TOTAL announced the signing of a $14.9 billion senior debt financing agreement for Mozambique LNG. This project is the country’s first onshore LNG development. It includes the development of the Golfinho and Atum natural gas fields located in Offshore Area 1 concession and the construction of a two-train liquefaction plant with a total capacity of 13.1 million tons per annum.

Mozambique LNG represents a total expected post-FID investment of approximately $20 billion. The project financing amounts to $14.9 billion and includes direct and covered loans from 8 Export Credit Agencies (ECAs), 19 commercial bank facilities, and a loan from the African Development Bank.

Total E&P Mozambique Area 1 Limitada, a wholly owned subsidiary of TOTAL, operates Mozambique LNG with a 26.5% participating interest alongside ENH Rovuma Área Um, S.A. (15%), Mitsui E&P Mozambique Area1 Limited (20%), ONGC Videsh Rovuma Limited (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%).

Results of the option to receive the final 2019 dividend in shares

The Shareholders’ Meeting of TOTAL, held on May 29, 2020, offered the option for shareholders to receive the final 2019 dividend of 0.68 euro per share in cash or in new shares of the Company.

The share price for the new shares issued in payment of the final 2019 dividend was set on May 29, 2020 at €28.80. This price is equal to 90% of the average opening prices of the shares on Euronext Paris for the twenty trading days preceding the Shareholders’ Meeting, reduced by the net amount of the final dividend, and rounded up to the nearest euro cent.

The period to exercise the option ran from July 1^^to July 10, 2020 included. At the end of the option period, 62% of rights were exercised in favour of receiving the payment for the final 2019 dividend in shares. As a result, 38,063,688 new shares were issued, representing 1.46% of the Company’s share capital based on the share capital as of June 30, 2020.

The settlement and delivery of the new shares as well as their admission to trading on Euronext Paris occurred on July 16, 2020. The new shares carry immediate dividend rights and were fully assimilated with existing TOTAL shares.

The cash dividend to be paid to the shareholders who did not elect to receive the final 2019 dividend in shares amounts to €663 million and the date for the payment in cash was set for July 16, 2020.

Brazil: Production ramp-up on Iara with the start-up of the second Floating Production Storage and Offloading

On June 26, 2020, TOTAL and its partners announced the start-up of the Floating Production Storage and Offloading (FPSO) P-70 of the Iara cluster (Block BM-S-11A), located in the deepwater Santos Basin pre-salt offshore Brazil. With a productive capacity of up to 150,000 barrels of oil per day, this new unit doubles the overall production capacity of the Iara cluster – initiated in November 2019 on the Berbigão field with the FPSO P-68 – and is expected to produce the reserve of the Atapu field.

The BM-S-11A license comprises parts of the fields of Sururu, Berbigão and Atapu. TOTAL acquired a working interest of 22.5% in Block BM-S-11A on January 12, 2018 as part of the strategic alliance with Petrobras, becoming a partner alongside operator Petrobras (42.5%), Shell Brasil Petróleo Ltda. (25%) and Petrogal Brasil S.A. (10%).

Algeria: TOTAL andSonatrach extend their partnership in liquefied natural gas

On June 25, 2020, TOTAL and Sonatrach signed an agreement to renew their partnership in the field of liquefied natural gas (LNG). This agreement notably allows the extension of the existing supply contracts for 3 additional years in order to provide an expected 2 million tons per year of Algerian LNG to the French market, primarily through an LNG terminal at Fos Cavaou. The agreement also includes the sub-charter of an LNG tanker of TOTAL by Sonatrach.

FORWARD-LOOKING STATEMENTS

This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements arebased on the beliefs and assumptions of the management of TOTAL and on the information currently available to such management. Forward-looking statements include information concerning forecasts, projections, anticipated synergies, and otherinformation concerning possible or assumed future results of TOTAL, and are often, but not always, preceded by, followed by, or otherwise include the words “believes”, “expects”, “anticipates”, “intends”,“plans”, “targets”, “estimates” or similar expressions.

Forward-looking statements are not assurances ofresults or values. They involve risks, uncertainties and assumptions. TOTAL’s future results and share value may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine these resultsand values are beyond TOTAL’s ability to control or predict. Except for its ongoing obligations to disclose material information as required by applicable securities laws, TOTAL does not have any intention or obligation to updateforward-looking statements after the distribution of this document, even if new information, future events or other circumstances have made them incorrect or misleading.

You should understand that various factors could affect the future results of TOTAL and could cause results to differ materially from those expressedin such forward-looking statements, including:

• material adverse changes in general economic conditions or in the markets served by TOTAL, including changes in theprices of oil, natural gas, refined products, petrochemical products and other chemicals;
• changes in currency exchange rates and currency devaluations;
--- ---
• the success and the economic efficiency of oil and natural gas exploration, development and production programs,including without limitation, those that are not controlled and/or operated by TOTAL;
--- ---
• uncertainties about estimates of changes in proven and potential reserves and the capabilities of production facilities;
--- ---
• uncertainties about the ability to control unit costs in exploration, production, refining and marketing (includingrefining margins) and chemicals;
--- ---
• changes in the current capital expenditure plans of TOTAL;
--- ---
• the ability of TOTAL to realize anticipated cost savings, synergies and operating efficiencies;
--- ---
• the financial resources of competitors;
--- ---
• changes in laws and regulations, including tax and environmental laws and industrial safety regulations;
--- ---
• the quality of future opportunities that may be presented to or pursued by TOTAL;
--- ---
• the ability to generate cash flow or obtain financing to fund growth and the cost of such financing and liquidityconditions in the capital markets generally;
--- ---
• the ability to obtain governmental or regulatory approvals;
--- ---
• the ability to respond to challenges in international markets, including political or economic conditions, includinginternational armed conflict, and trade and regulatory matters;
--- ---
• the ability to complete and integrate appropriate acquisitions, strategic alliances and joint ventures;
--- ---
• changes in the political environment that adversely affect exploration, production licenses and contractual rights orimpose minimum drilling obligations, price controls, nationalization or expropriation, and regulation of refining and marketing, chemicals and power generating activities;
--- ---
• the possibility that other unpredictable events such as labor disputes or industrial accidents will adversely affect thebusiness of TOTAL; and
--- ---
• the risk that TOTAL will inadequately hedge the price of crude oil or finished products.
--- ---

For additional factors, you should read the information set forth under “Item 3. -3.2 RiskFactors”, “Item 4. Information on the Company”, “Item 5. Operating and Financial Review and Prospects” and “Item 11. Quantitative and Qualitative Disclosures about Market Risk” in TOTAL’s Form 20-F/A for the year ended December 31, 2019.

EX-99.3

Exhibit 99.3

CAPITALIZATION AND INDEBTEDNESS OF TOTAL

(unaudited)

The following table sets out the unaudited consolidated capitalization and long-term indebtedness, as well as short-term indebtedness, of the Group as of June 30, 2020, prepared on the basis of IFRS. Currency amounts are expressed in U.S. dollars (“dollars” or “$”) or in euros (“euros” or “€”).

At June 30, 2020
(in millions of dollars)
Current financial debt, including current portion of non-current financial debt
Current portion of non-current financial debt 7,452
Current financial debt 8,612
Current portion of financial instruments for interest rate swaps liabilities 245
Other current financial instruments — liabilities 166
Financial liabilities directly associated with assets held for sale —
Total current financial debt 16,565
Non-current financial debt 61,540
Non-controlling interests 2,334
Shareholders’ equity
Common shares 8,159
Paid-in surplus and retained earnings 107,934
Currency translation adjustment (13,265 )
Treasury shares (1,623 )
Total shareholders’ equity — Group share 101,205
Total capitalization and non-current indebtedness 165,079

As of June 30, 2020, TOTAL SE had an authorized share capital of 3,647,642,159 ordinary shares with a par value of €2.50 per share, and an issued share capital of 2,615,060,337 ordinary shares (including 28,706,598 treasury shares from shareholders’ equity).

As of June 30, 2020, approximately $7,477 million of the Group’s non-current financial debt was secured and approximately $54,063 million was unsecured, and all of the Group’s current financial debt of $8,612 million was unsecured. As of June 30, 2020, TOTAL had no outstanding guarantees from third parties relating to its consolidated indebtedness. For more information about TOTAL’s off balance sheet commitments and contingencies, see Note 13.1 of the Notes to TOTAL’s audited Consolidated Financial Statements in its Annual Report on Form 20-F for the year ended December 31, 2019, filed with the Securities and Exchange Commission on March 20, 2020, as amended on April 14, 2020.

Except as disclosed herein, there have been no material changes in the consolidated capitalization, indebtedness and contingent liabilities of TOTAL since June 30, 2020.

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