Registration Document 2005 - Total.com

2
Europe
Business overview
Downstream - Refining & Marketing
In 2004, the Group completed implementing its program to unify
its network under the TOTAL brand. Coupled with a new corporate
identity program to provide higher visibility for the TOTAL brand,
this program has led to a more coherent and effective commercial
strategy.
TOTAL is among the leaders in Europe for fuel-payment cards, with
approximately 3 million holders in 16 European countries. In 2005,
more than 4.54 Mm 3 of motor fuels were sold and paid by card,
compared to 4.41 Mm 3 in 2004 and 4.32 Mm 3 in 2003.
TOTAL has a network of 435 AS24-branded retail stations
dedicated to professional transporters in 17 European countries.
In France, the TOTAL-branded network provides extensive
national coverage and offers a broad range of quality retail station
services and a diverse selection of other products, such as the
“Bonjour” convenience stores, while benefiting from customer
loyalty programs. Elf-branded retail stations offer quality fuels and
basic services at prices that are particularly competitive. As of
December 31, 2005, the TOTAL-branded network consisted of
approximately 3,000 retail stations in France, while the Elf-branded
network included nearly 300 retail stations. TOTAL also markets
fuels at nearly 2,000 Elan-branded retail stations located in rural
areas.
Elsewhere in Europe, TOTAL is developing its network of stations
in Belgium, Luxembourg, the Netherlands, Germany, the UK, Italy,
Portugal and, through its 45.3% interest in the Spanish company
Cepsa, Spain. In 2003 and 2004 the Group took steps to focus
its European marketing activities in certain countries where it had
a significant market share. These steps included acquiring service
stations in Germany from Shell-DEA in 2004 in exchange for
service stations in France, the Czech Republic and Hungary and
concluding an agreement with Agip Petroli and Galp in 2003 to sell
TOTAL-branded stations in Spain in exchange for service stations in
Italy and Portugal.
In France in 2005, there was an important round of renewals of
motorway service station concessions, concerning a total of 58
motorway concessions including 17 belonging to TOTAL. The
Group obtained 12 concessions that it considers to be of high
strategic value because of their size and location. In Germany,
the major restructuring program launched in 2004 was continued
in 2005 with the rationalization of the network’s portfolio and the
development of non-fuel sales. In the UK, the restructuring program
launched in 2003 has had a positive impact and a second phase
aiming to further rationalize sites and to develop non-fuel sales will
continue in 2006.
In April 2005, TOTAL launched two new high-performance fuels,
branded TOTAL EXCELLIUM 98 and TOTAL EXCELLIUM diesel,
in France, Belgium, Italy, the Netherlands, the UK and Turkey.
44 TOTAL - Registration Document 2005
These “new generation” fuels reduce fuel consumption and carbon
dioxide emissions, decrease exhaust emissions (in particular
carbon monoxide), reduce the noise level upon ignition and clean
sensitive engine parts such as injectors and inlet valves. The
EXCELLIUM range of products demonstrates TOTAL’s commitment
to developing innovative and economical technological solutions to
respond to its customers needs. At the end of 2005, the results of
this initiative, in terms of market penetration, were better than those
originally targeted.
In 2005, TOTAL began distributing a urea-based additive called
AdBlue for European professional transport vehicles. This product
destroys nitrogen oxide in truck exhaust systems in order to meet
current and future environmental standards (Euro IV and Euro V).
In June 2005, TOTAL inaugurated the first French service station
marketing urea, near Lyon. From 2006 to 2008, TOTAL will supply
AdBlue in 25 European countries through a network of 400 retail
outlets, including 200 in France.
The Group renewed its partnership agreements with
car manufacturers Renault and Peugeot in 2005. These
agreements concern research and development (for fuels and
lubricants), commercial relations with dealerships and motor sports
sponsoring.
Africa
As of December 31, 2005, TOTAL was present in more than
40 African countries and had interests in seven refineries.
In 2005, TOTAL strengthened its position in Africa by signing an
agreement to acquire the marketing and distribution affiliates of
ExxonMobil in 14 African countries (Chad, Djibouti, Eritrea, Ethiopia,
Ghana, Guinea Conakry, Liberia, Malawi, Mauritius, Mozambique,
Sierra Leone, Togo, Zambia and Zimbabwe). These acquisitions
are now effective (with the exception of an interest in Zambia
which is still subject to the approval of anti-competition authorities).
This acquisition includes 500 service stations and 29 terminals
and depots with a capacity of 380,000 m 3 . With this agreement,
TOTAL is reinforcing its presence in western African countries,
consolidating its positions in eastern Africa and becoming the
largest marketer of petroleum products in Africa.
Asia
As of December 31, 2005, TOTAL is present in 14 Asian countries
and has an interest in the refinery at Dalian in China.
In March 2005, TOTAL signed a joint-venture agreement with
Sinochem in China to develop a network of 200 retail stations in
Beijing and the area to the north of the city. The total investment
for this project should be approximately $120 million. Three service
stations were operating as of December 31, 2005. A second jointventure
with Sinochem for the creation of 300 service stations in