Final Results

Total Fina Elf. 13 June 2001 Final 2000 results Net income excluding non-recurring items +128% to 7,637 million euros Dividend increased to 3.3 euros per share (+ 40%) Paris, March 14, 2001 - The Board of Directors of TotalFinaElf, chaired by CEO Thierry Desmarest, met on March 13, 2001, to review and close the consolidated accounts for the Group's 2000 results. The final 2000 results are in line with the preliminary results reported following the Board of Directors meeting on January 30, 2001. The Board of Directors also reviewed and closed the accounts of the parent company. Net income (Group share) excluding non-recurring items rose to 7,637 million euros in 2000, a 128% increase compared to pro forma 1999. Reported net income (Group share) was 6,904 million euros in 2000, an increase of 97%. Earnings per share excluding non-recurring items rose to 10.80 euros in 2000 from 4.77 euros in pro forma 1999. Operating income from business segments excluding non-recurring items rose to 14,884 million euros in 2000, a 134% increase as compared to pro forma 1999 . Net operating income from business segments excluding non-recurring items (1) amounted to 8,035 million euros in 2000. The 2000 environment was favorable for the oil industry. The oil price increased strongly as well as refining margins and the dollar exchange rate. The average Brent oil price rose by 58% to $28.5/b in 2000 from $18/b in 1999. European refining margins increased by 145% to $23.8/t in 2000 from $9.7/t in 1999. The dollar appreciated relative to the euro in 2000 (+16%), averaging an exchange rate of 0.92 dollar per euro. Changes in market parameters had a combined positive impact of 7.3 billion euros on operating income. The combination of growth and synergies/productivity programs increased 2000 operating income by 1.2 billion euros, in line with the announced program to improve operating income over the period 1999-2003 by 4.4 billion euros per year by 2003. (1) net operating income = operating income + equity in income (loss) of affiliates + dividends received + other income (expense) + increase in capitalized interest - taxes (excluding interest impact) - amortization of goodwill and intangibles The return on capital employed for the business segments (ROCE) increased to 21% in 2000 from 11.5% in pro forma 1999. In 2000, investments were maintained at a high level of 8,339 million euros. TotalFinaElf bought back 11.9 million shares between September and December 2000. The fully-diluted weighted average number of shares for 2000 was 707.1 million. The net-debt-to-equity ratio was reduced to 32.9% at year-end 2000 versus 49.7% at pro forma year-end 1999. Return on equity (ROE) rose to 27% in 2000 from 13% in pro forma 1999. Consolidated accounts TotalFinaElf (French GAAP - Article 215) In million euros 2000 1999 pro forma Change Sales 114,577 75,035 + 53% Operating income from business 14,884 6,354 + 134% segments excluding non-recurring items (1) Net operating income from business 8,035 n.a. - Segments (excluding non-recurring items) Net income (Group share) 7,637 3,349 + 128% excluding non-recurring items (2) Net income (Group share) 6,904 3,496 + 97% Earnings per share (euros) 10.80 4.77 + 126% excluding non-recurring items Cash flow from operating 13,389 7,012 +91% activities (3) Investments 8,339 8,495 -2% Divestments (4) 3,241 1,750 + 85% based on selling price (1) impact of non-recurring items on operating income: 2000: restructuring charges (-64 MEuro), FAS 121 (-269 MEuro) and other items (-49 MEuro) 1999 : FAS 121 (-343 MEuro) and restructuring charges (-252 MEuro) (2) impact of non-recurring items on net income: 2000: restructuring charges (-247 MEuro), impairments (-459 MEuro), early retirement plans (-222 MEuro), gains on asset sales (+358 MEuro) and other items (-163 MEuro). 1999: gains on asset sales (+1,132 MEuro), FAS 121 (-453 MEuro), early retirement plans (-31 MEuro), restructuring charges (-295 MEuro) and Corporate charges (-206 MEuro). (3) includes the negative impact related to coverage of certain pension benefit plans 494 MEuro (4) includes the reimbursement of long-term loans for 606 MEuro in 2000 and 420 MEuro in 1999 UPSTREAM Operating income from the Upstream segment, excluding non-recurring items, rose to 10,113 million euros, a 146% increase compared to pro forma 1999. The Upstream segment fully benefited from the sharp rise in oil prices and the stronger dollar. Net operating income from the Upstream segment, excluding non-recurring items, was 4,841 million euros in 2000. The return on capital employed (ROCE) for Upstream rose to 29% in 2000, a strong increase from 1999. Upstream production rose to 2,124 mboe/d in 2000 from 2,065 mboe/d in pro forma 1999, a net increase of 3%. The underlying growth rate was 6% excluding the impact of asset sales and the negative price effect on production volumes for PSC and buy-back contracts. In 2000, liquids production declined by 2% to 1,433 mb/d, and gas production rose by 13% to 3,758 Mcfd. Proved reserves continued to grow in 2000, rising by 3% to 10,762 Mboe from 10,455 Mboe in pro forma 1999. Based on the 2000 average production rate, these reserves represent 14 years of production. The 1998-2000 three-year average reserve replacement rate for consolidated subsidiaries was 189%, which compares favorably to that of the other majors. For consolidated subsidiaries, the 1998-2000 three-year average reserve replacement cost remained at a low and competitive level of $3.7/boe. Following another very good year for exploration, the 1998-2000 three-year average finding cost decreased further to a competitive level of £0.7/boe- Upstream key figures 2000 1999 pro forma Change * Production (mboe/d) 2,124 2,065 +3% - Liquids (mb/d) 1,433 1,468 -2% - Gas(Mcfd) 3,758 3,322 + 13% * Reserves (Mboe) * 10,762 10,455 +3% - Liquids (Mb) * 6,960 6,868 +1% - Gas(Bcf) 20,705 20,253 +2% * Operating Income (MEuro) 10,113 4,119 + 146% excluding non-recurring items * Net operating income (MEuro) 4,841 n.a. - excluding non-recurring items * Investments (MEuro) 5,639 5,132 + 10% Downstream Downstream operating income excluding non-recurring items tripled to 3,144 million euros in 2000 from 1,046 million euros in pro forma 1999. The Downstream segment fully benefited from the upsurge in refining margins and the stronger dollar. On the other hand, marketing margins were squeezed because of rising prices. Of the 2.1 billion euro increase in operating income, 70% resulted from the changes in market parameters and 30% from internal synergies and productivity gains. Net operating income from the Downstream segment, excluding non-recurring items, was 2,232 million euros in 2000. The return on capital employed (ROCE) for Downstream rose to 19%, a strong increase from 1999. In 2000, refinery throughput was stable at 2,411 mb/d, including 2,109 mb/d from Europe. Refined product sales volumes fell slightly to 3,695 mb/d in 2000 from 3,830 mb/d in pro forma 1999. Integration of refinery management and continued efforts to lower costs enabled the Downstream segment to lower the breakeven point for its refineries to $10/t (based on major products). Downstream key figures 2000 1999 Change pro forma * Refinery throughput(1) (mb/d) 2,411 2,411 - * Refined product sales(2) (mb/d) 3,695 3,830 -4% * Operating Income (MEuro) 3,144 1,046 +201% excluding non-recurring items * Net operating income (MEuro) 2,232 n.a. - excluding non-recurring items * Investments (MEuro) 1,163 1,281 -9% (1) Including share of Cepsa and the US Big Spring refinery through July 2000 (2) Including trading and share of Cepsa CHEMICALS Chemical sales rose by 21% to 20,843 million euros in 2000 from 17,268 million euros in pro forma 1999. Operating income excluding non-recurring items rose by 37% to 1,627 million euros from 1,189 million euros in 1999. For the year, higher petrochemical margins led to a 0.2 billion euro increase in operating income versus pro forma 1999. During the first half of 2000, Chemicals benefited from a favorable economic environment: sustained activity for Asia and Europe and continued growth in the United States. In the second half of the year, however, the beginning of an economic slowdown hurt certain sectors, particularly the Polymers. Chemicals were also affected by an increase in raw material prices which could not be fully passed on to consumers. Intermediates & Performance Polymers showed strong resilience to declining margins. Specialties continued to grow in a favorable environment. Net operating income from the Chemicals segment, excluding non-recurring items, was 962 million euros in 2000, The return on capital employed (ROCE) for Chemicals (excluding the impact of 143 million euros of goodwill amortization) was 10% in 2000, an increase from 1999. Chemicals key figures (MEuro) 2000 1999 pro forma Change Sales 20,843 17,268 +21% Operating income 1,627 1,189 + 37% excluding non-recurring items Net operating income 962 n,a. - excluding non-recurring items Investments 1,353 1,666 -19% PARENT COMPANY TOTAL FINA ELF S.A. ACCOUNTS AND PROPOSED DIVIDEND The parent company TotalFinaElf reported earnings of 3,012 million euros for 2000 as compared to 916 million euros for 1999. The Board of Directors of TotatFinaElf, after closing the accounts, has decided to propose at the May 17, 2001, General Assembly a dividend of 3.3 euros per share, representing an increase of 40.4% from the previous year, to which will be added the avoir fiscal (French tax credit) pursuant to the terms in force. The payment date for the proposed cash dividend will be May 29, 2001. OUTLOOK The 2001 investment budget of 9.4 billion euros represents an increase from the level of 2000 investments and will give priority to Upstream growth, maintain strict financial discipline for Downstream and provide selective growth for Chemicals. The budget is split 71% for Upstream (including approximately 1 billion euros for the acquisition of gas and power assets in South America), 12% for Downstream and 17% for Chemicals. TotalFinaElf will maintain an ongoing divestment program expected to average 2.5 billion euros per year. The 2001 share repurchase program targets 2% of the Company's shares and may be adjusted for changes depending on market parameters. During the first months of 2001, market parameters have remained favorable, with oil prices and the dollar staying at relatively high levels. In this context, TotalFinaElf's activities continue to progress well. 2000 SEGMENT HIGHLIGHTS UPSTREAM In Europe, development continued on the Elgin-Franklin fields (TotalFinaElf-operated 46.2%). Following the installation of the production, utilities and quarters platform on site in July 2000, the hook-up to wellhead platforms and commissioning operations are progressing well. First production is expected at the end of the first quarter 2001. In the CIS, the OKIOC consortium (TotalFinaElf 14.28%) made a major hydrocarbon discovery with the exploration well, Kashagan East 1, in the northeast Caspian Sea in Kazakhstan. A second exploration well, Kashagan West 1, was started in October 2000. The results from this well are expected in the spring of 2001, In Africa, the magnitude of the Akpo discovery in 2000 on the deep offshore OPL 246 (TotalFinaElf-operated 24%) in Nigeria has been confirmed with two appraisal wells. In Angola, on Block 17 (TotalFinaElf-operated 40%), two new discoveries, Jasmim and Perpetua, were made in 2000, making 10 discoveries thus far on this block. Development of the Girassol field continued. First production is scheduled for year-end 2001, with a target production plateau of 200 mb/d to be reached in 2002. Basic engineering studies for the development of the Dalia field were launched in December 2000. On Block 14 (TotalFinaElf 20%), production on the Kuito field, which started up at the end Of 1999, is continuing to grow with the launch of Phase 1C of the development. Also on Block 14, a new discovery, Lobito, was made in 2000. In the Middle East, on the Oman LNG project (TotalFinaElf 5.54%) the first two trains of the Qalhat liquefied natural gas plant with a capacity of 6.6 Mt/year started up in 2000. The first cargo of LNG left the terminal in April 2000 for delivery to South Korea. In Iran, on South Pars 2-3 (TotalFinaElf-operated 40%), development work continued with production start-up scheduled for the first quarter 2002. In the Far East, development of the Tunu and Peciko fields (TotalfinaElf-operated 50%) in Indonesia continued, leading to an increase in production from 340 mboe/d in 1999 to approximately 440 mboe/d in 2000. In South America, the Sincor project (TotalFinaElf-operated 47%) in Venezuela is progressing on schedule. The initial production phase started in December 2000 with 40 mb/d of extra-heavy oil production that is diluted with a lighter crude and marketed as such. The upgrader is due to start up at year-end 2001, allowing a future plateau production level of 180 mb/d of processed high-quality synthetic crude. In Bolivia, on Block XX West (TotalFinaElf-operated 41%), delineation of the Itau discovery was continued with the Itau X2 well, which led to the discovery of additional gas reserves in early 2001. On the San Alberto permit (TotalFinaElf 15%), initial development was completed in December 2000 and production started up in January 2001. This initial phase will lead to gas production of up to 6 Mm3/d for export to Brazil. In North America, in the deep offshore Mississippi Canyon Corridor, a decision was made to develop the Aconcagua (TotalFinaElf-operated 50%) and Camden-Hills (TotalFinaElf 16.67%) gas fields, located in water depths of 2,100 meters as well as the King's Peak field. TotalFinaElf is the operator of the Canyon Express transport system that will link these fields to Canyon Station. In Gas and Power, TotalFinaElf continued to develop its presence in the fast-growing Southern Cone region, where the company already ranks among the largest producers and reserve holders of natural gas. In 2000, TotalFinaElf acquired a 9.7% interest in the Brazilian part of the Bolivia-Brazil gas pipeline, which will supply the rapidly developing markets in south and southeast Brazil from its gas reserves in Bolivia. The Group also acquired the Southern Cone pipeline interests of Transcanada Pipelines Ltd. In November 2000, TotalFinaElf concluded an agreement with AES Corporation to acquire all its power generation assets in Argentina from the Chilean company GENER, thus gaining an installed capacity of approximately 4,200 megawatts. In the Upstream, the Group disposed of some non-strategic assets, including the UKCS 4th round and the Emeraude field in Congo. Production by region In mboe/d 2000 1999 pro forma Europe 735 716 Africa 624 601 Americas 174 196 Far East 197 181 Middle East 92 91 Company share of equity affiliates and 302 280 non-consolidated subsidiaries Total production 2,124 2,065 DOWNSTREAM In European refining, implementation of the refinery hub concept in 2000 led to integrated management of neighbouring facilities and will continue to generate synergies. This management concept allows optimized logistics on a larger base, supply integration, product exchanges, and also exploits the benefits of the integration of refining with the Group's other operations, particularly petrochemicals. In marketing, as a result of the mergers, TotalFinaElf is the leader in West Europe, as comprised by the six largest markets (France, Spain, Benelux, United Kingdom, Germany, Italy). In Africa, TotalFinaElf is now the co-leader on the continent with activities in more than 40 countries and a network market share above 10% in more than 30 countries. The TotalFinaElf network market share in all of Africa is now greater than 20%. In Asia, TotalFinaElf continued in 2000 a selective development program for specialty products and retail marketing. In August 2000, TotalFinaElf disposed of the Big Spring refinery in Texas and associated assets and, at year-end 2000, completed agreements satisfying the divestments required by the European Commission for its approval of the merger of TotalFina and Elf Aquitaine, These agreements relate to the safe of interests in certain oil pipelines and refined product depots, the opening of the refueling infrastructures at the Lyon and Toulouse airports, the sale of 70 highway service stations under the TOTAL, FINA and ELF brands, and ELF sale in France of Elf Antargaz and the associated LPG logistics. Refined product sales by region In mb/d 2000 1999 pro forma Europe 2,915 3,045 Africa 276 271 Americas 356 357 Middle East 68 92 Far East 63 53 Rest of world 17 12 Total sales* 3,695 3,830 * includes trading and share of Cepsa Number of service stations At December 31 2000 1999 pro forma Europe 11,721 12,018 France 5,859 6,038 United Kingdom 1,664 1,765 Benelux 1,168 1,140 Germany 1,205 1,242 Italy 1,293 1,318 Spain & Portugal 251 242 Switzerland 190 194 Central Europe 91 79 Africa 3,395 3,259 United States 0 1,682 Rest of world 1,015 968 CEPSA * 1,564 1,593 Total 17,695 19,520 * total number of Cepsa service stations, TotalFinaElf holds 45.3% of Cepsa CHEMICALS In Petrochemicals & Plastics, the major projects initiated in 1999, in Europe and the United States, have now entered their implementation phase, including the steamcracker at Port Arthur (Texas) and the ethylene pipeline linking the Carling steamcracker to the Viriat storage facilities in France. In the United States, the construction of plants adjoining the steamcracker and the refinery in Fort Arthur (butadiene extraction, indirect alkylation...), part of a joint venture between TotalFinaElf, BASF and SHELL, was confirmed. In Europe, the proposed expansion of the Carting steamcracker (France) was launched. This expansion, combined with the steamcracker's enhanced energy efficiency, will come on stream at the end of 2001 TotalFinaElf exited Appryl, its polypropylene joint venture with BP. Under the terms of the agreement reached with BP, TotalFinaElf took over the Gonfreville site, where capacity was increased to 200 mt/y at the end of 2000 and the compounds activities for automotive applications. TotalFinaElf and BP also set up a manufacturing joint venture on the Lavera site, with production split between both partners. Intermediates & Performance Polymers continued to grow, recording steady increases in sales and operating income. Specialties enjoyed strong growth in 2000, boosted by dynamic markets, like electronics, automotive and transportation, and by targeted external growth operations. Hutchinson completed two acquisitions in 2000. The first, Barry Controls, has enabled Hutchinson to join the leaders in both the American and world market sector of industrial and aerospace anti-vibration products. The second, Soke, has strengthened Hutchinson's market share in the consumer markets of Central Europe. ATOTECH (electroplating) acquired the assets of the American company McGean Rohco in the electroplating and anti-corrosion sector. This operation has made the company the market leader in the United States and further developed its position worldwide. In Paints and Adhesives, new organizational structures resulting from mergers have been put in place. In addition, the Group disposed of certain Chemical assets, notably the Oleochemicals and Metal & Aviation. In billions of euros 2000 1999 pro forma Change * Sales by sector - Petrochemicals & plastics 8.0 5.5 + 45% - Intermediates & performance polymers 5.3 4.6 + 15% - Specialties 7.5 7.2 + 4%(2) * Operating Income by sector (1) - Petrochemicals & plastics 0.55 0.16 + 244% - Intermediates & performance polymers 0.48 0.46 + 4% - Specialties 0.62 0.57 + 9%(3) (1) excluding non-recurring items (2) + 16% excluding the inks,sold in 1999 (3) +17% excluding the inks 2, place de la Coupole La Defense 6 92 400 Courbevoie France Tel.: 33(1)47 44 58 53 Fax : 33(1)47 44 58 24 Ladislas PASZKIEWICZ Samia NEDIR Pascal BREANT Robert HAMMOND (New York) Tel. : (1)212 922 3065 Fax : (1)212 922 3074 TOTAL FINA ELF SA. Capital 7 404 657 980 euros 542 051 180 R.C.S. Nanterre www.totalfinaelf.com

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