FORM 10-K IMPERIAL OIL LIMITED

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PART I Page Item 1. Business...........................................................................................................................................3 Financial Information by Operating Segments......................................................................................3 Natural Resources..........................................................................................................................4 Petroleum and Natural Gas Production..........................................................................................4 Land Holdings............................................................................................................................9 Exploration and Development.......................................................................................................9 Petroleum Products.......................................................................................................................11 Supply....................................................................................................................................11 Refining..................................................................................................................................11 Distribution..............................................................................................................................12 Marketing................................................................................................................................12 Chemicals....................................................................................................................................13 Research.....................................................................................................................................13 Environmental Protection...............................................................................................................13 Human Resources.........................................................................................................................13 Competition..................................................................................................................................13 Government Regulation..................................................................................................................14 The Company Online.....................................................................................................................14 Item 2. Properties........................................................................................................................................15 Item 3. Legal Proceedings.............................................................................................................................15 Item 4. Submission of Matters to a Vote of Security Holders..............................................................................15 PART II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities...........................................................................................................15 Item 6. Selected Financial Data......................................................................................................................16 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation..............................16 Item 7A. Quantitative and Qualitative Disclosures About Market Risk....................................................................26 Item 8. Financial Statements and Supplementary Data.......................................................................................26 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure............................31 Item 9A. Controls and Procedures....................................................................................................................31 PART III Item 10. Directors and Executive Officers of the Registrant.................................................................................32 Item 11. Executive Compensation....................................................................................................................35 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters...............43 Item 13. Certain Relationships and Related Transactions.....................................................................................44 Item 14. Principal Accountant Fees and Services...............................................................................................44 PART IV Item 15. Exhibits and Financial Statement Schedules..........................................................................................45 Index to Financial Statements ........................................................................................................................F-1 Management’s Report on Internal Control over Financial Reporting ....................................................................F-2 Auditors’ Report...........................................................................................................................................F-2 All dollar amounts set forth in this report are in Canadian dollars, except where otherwise indicated. The following table sets forth (i) the rates of exchange for the Canadian dollar, expressed in U.S. dollars, in effect at the end of each of the periods indicated, (ii) the average of exchange rates in effect on the last day of each month during such periods, and (iii) the high and low exchange rates during such periods, in each case based on the noon buying rate in New York City for cable transfers in Canadian dollars as certified for customs purposes by the Federal Reserve Bank of New York. 2004 2003 2002 2001 2000 (Dollars) Rate at end of period............................................................. 0.8310 0.7738 0.6329 0.6279 0.6669 Average rate during period................................................ 0.7702 0.7186 0.6368 0.6444 0.6725 High................................................................................................. 0.8493 0.7738 0.6619 0.6697 0.6969 Low................................................................................................. 0.7158 0.6349 0.6200 0.6241 0.6410 On February 28, 2005, the noon buying rate in New York City for cable transfers in Canadian dollars as certified for customs purposes by the Federal Reserve Bank of New York was $0.8133 U.S. = $1.00 Canadian. 2
This report contains forward looking information on future production, project start ups and future capital spending. Actual results could differ materially as a result of market conditions or changes in law, government policy, operating conditions, costs, project schedules, operating performance, demand for oil and natural gas, commercial negotiations or other technical and economic factors. PART I Item 1. Business. Imperial Oil Limited was incorporated under the laws of Canada in 1880 and was continued under the Canada Business Corporations Act (the “CBCA”) by certificate of continuance dated April 24, 1978. The head and principal office of the Company is located at 111 St. Clair Avenue West, Toronto, Ontario, Canada M5W 1K3; telephone 1-800-567-3776. Exxon Mobil Corporation owns approximately 69.6 percent of the outstanding shares of the Company with the remaining shares being publicly held, with the majority of shareholders having Canadian addresses of record. In this report, unless the context otherwise indicates, reference to the “Company” includes Imperial Oil Limited and its subsidiaries. The Company is Canada’s largest integrated oil company. It is active in all phases of the petroleum industry in Canada, including the exploration for, and production and sale of, crude oil and natural gas. In Canada, it is one of the largest producers of crude oil and natural gas liquids and a major producer of natural gas, and the largest refiner and marketer of petroleum products. It is also a major supplier of petrochemicals. The Company’s operations are conducted in three main segments: natural resources (“upstream”), petroleum products (“downstream”) and chemicals. Natural resources operations include the exploration for, and production of, crude oil and natural gas, including upgraded crude oil and crude bitumen. Petroleum products operations consist of the transportation, refining and blending of crude oil and refined products and the distribution and marketing thereof. The chemicals operations consist of the manufacturing and marketing of various petrochemicals. Financial Information by Operating Segments (under U.S. GAAP) 2004 2003 2002 2001 2000 External revenues (1): (millions) Natural resources.......................................... $ 3,734 $ 3,424 $ 2,677 $ 3,155 $ 3,262 Petroleum products........................................ 17,545 14,764 13,396 13,105 13,788 Chemicals..................................................... 1,216 994 955 930 945 Corporate and other........................................ (35) 26 14 63 56 $22,460 $19,208 $17,042 $17,253 $18,051 Intersegment sales: Natural resources........................................... $ 2,891 $ 2,224 $ 2,217 $ 2,166 $ 2,638 Petroleum products........................................ 1,666 1,294 1,038 1,300 1,332 Chemicals..................................................... 293 238 209 245 228 Total revenues: Natural resources.......................................... $ 6,625 $ 5,648 $ 4,894 $ 5,321 $ 5,900 Petroleum products........................................ 19,211 16,058 14,434 14,405 15,120 Chemicals .................................................... 1,509 1,232 1,164 1,175 1,173 Corporate and other........................................ (35) 26 14 63 56 Net income (2): Natural resources......................................... $ 1,487 $ 1,143 $ 1,042 $ 941 $ 1,165 Petroleum products....................................... 500 407 127 353 313 Chemicals.................................................... 100 37 52 23 59 Corporate and other (3) /eliminations................. (35) 118 (7) (94) (129) $ 2,052 $ 1,705 $ 1,214 $ 1,223 $ 1,408 Identifiable assets at December 31 (4): Natural resources.......................................... $ 6,875 $ 6,418 $ 6,014 $ 5,390 $ 5,294 Petroleum products....................................... 5,570 5,290 5,127 4,425 4,829 Chemicals.................................................... 498 440 428 384 381 Corporate and other/eliminations....................... 1,084 189 434 689 762 $14,027 $12,337 $12,003 $10,888 $11,266 Capital and exploration expenditures: Natural resources ......................................... $ 1,113 $ 1,007 $ 986 $ 746 $ 434 Petroleum products....................................... 283 478 589 339 232 Chemicals.................................................... 15 41 25 30 13 Corporate and other........................................ 34 33 12 - - $ 1,445 $ 1,559 $ 1,612 $ 1,115 $ 679 (1) Export sales are reported in note 2 to the consolidated financial statements on page F-11. (2) These amounts are presented as if each segment were a separate business entity and, accordingly, include the financial effect of transactions between the segments. Intersegment sales are made essentially at prevailing market prices. (3) Includes primarily interest charges on the debt obligations of the Company, interest income on investments and intersegment consolidating adjustments. (4) The identifiable assets in each operating segment represent the net book value of the tangible and intangible assets attributed to such segment. 3
Page 1: SECURITIES AND EXCHANGE COMMISSION
Page 5 and 6: The Company’s average daily produ
Page 7 and 8: The Province of Alberta, in its cap
Page 9 and 10: Land Holdings At December 31, 2004
Page 11 and 12: etaining its 70 percent interest in
Page 13 and 14: Chemicals The Company’s Chemicals
Page 15 and 16: Item 2. Properties. Reference is ma
Page 17 and 18: Petroleum products The downstream c
Page 19 and 20: Petroleum Products Net income from
Page 21 and 22: Capital and exploration expenditure
Page 23 and 24: (c) (d) (e) The amount by which acc
Page 25 and 26: operating methods) applied to (3) t
Page 27 and 28: The following table sets forth the
Page 29 and 30: Crude oil and natural gas liquids C
Page 31 and 32: Changes in Standardized Measure of
Page 33 and 34: Name and current principal occupati
Page 35 and 36: Item 11. Executive Compensation. Di
Page 37 and 38: (1) K.C. Williams was on a loan ass
Page 39 and 40: date. The Company will pay the reci
Page 41 and 42: Payments to employees who retire Pe
Page 43 and 44: For selected executives, the execut
Page 45 and 46: PART IV Item 15. Exhibits and Finan
Page 47 and 48: (3) Deferred Share Unit Plan. (Inco
Page 49 and 50: INDEX TO FINANCIAL STATEMENTS Pages
Page 51 and 52: Consolidated statement of income mi
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Consolidated balance sheet millions
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Notes to consolidated financial sta
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Exhibit (23)(ii)(A) Consent of Inde
Page 71 and 72:
Exhibit (31.1) Certifications I, Ti
Page 73 and 74:
Exhibit (32.1) Certification of Per
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FORM 10-K IMPERIAL OIL LIMITED

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