Registration document 2007 - Total.com

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9 Statutory auditors’ report on the consolidated financial statements This is a free translation into English of the statutory auditors’ report issued in French and is provided solely for the convenience of English speaking users. The statutory auditors’ report includes information specifically required by French law in such reports, whether modified or not. This information is presented below the opinion on the consolidated financial statements and includes an explanatory paragraph discussing the auditors’ assessments of certain significant accounting and auditing matters. These assessments were considered for the purpose of issuing an audit opinion on the consolidated financial statements taken as a whole and not to provide separate assurance on individual account captions or on information taken outside of the consolidated financial statements. This report should be read in conjunction with, and construed in accordance with, French law and professional auditing standards applicable in France. For the year ended December 31, 2006 To the shareholders, In compliance with the assignment entrusted to us by the Annual General Shareholder’s Meeting, we have audited the accompanying consolidated financial statements of TOTAL S.A. for the year ended December 31, 2006. The consolidated financial statements have been approved by the Board of Directors. Our role is to express an opinion on these financial statements based on our audit. I. Opinion on the consolidated financial statements We conducted our audit in accordance with professional standards applicable in France. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and results of the Group as at December 31, 2006 in accordance with IFRSs as adopted by the European Union. II. Justification of our assessments In accordance with the requirements of article L.823-9 of the Commercial Code relating to the justification of our assessments, we bring to your attention the following matters: Some accounting principles applied by TOTAL involve a significant amount of judgments and estimates principally related to the application of the successful efforts method for the oil and gas activities, the depreciation of long-lived assets, the provisions for dismantlement, removal and environmental costs, the evacuation of retirement obligations and the determination of the current and deferred taxation. Detailed information relating to the application of these accounting principles is given in the notes to the consolidated financial statements. Our procedures relating to the material judgments or estimates made by the management and which can result from the application of these accounting principles enabled us to assess their reasonableness. The assessments were made in the context of our audit of the consolidated financial statements taken as a whole, and therefore contributed to the formation of the unqualified opinion expressed in the first part of this report. III. Vérification spécifique In accordance with professional standards applicable in France, we have also verified the information given in the Group management report. We have no matters to report as to its fair presentation and conformity with the consolidated financial statements. Paris La Défense, April 3, 2007 168 Appendix 1 – Consolidated financial statements Statutory auditors’ report on the consolidated financial statements TOTAL – Registration Document 2006 The statutory auditors KPMG Audit ERNST & YOUNG Audit Département de KPMG S.A. René Amirkhanian Gabriel Galet Philippe Diu
Consolidated statement of income TOTAL (in M€) (a) Appendix 1 – Consolidated financial statements Consolidated statement of income For the year ended December 31, 2006 2005 2004 Sales (notes 4 & 5) 153,802 137,607 116,842 Excise taxes (21,113) (20,550) (21,517) Revenues from sales 132,689 117,057 95,325 Purchases net of inventory variation (note 6) (83,334) (70,291) (56,020) Other operating expenses (note 6) (19,536) (17,159) (16,770) Exploration costs (note 6) (634) (431) (414) Depreciation, depletion, and amortization of tangible assets and leasehold rights (5,055) (5,007) (5,095) Operating income (note 4) Corporate (545) (467) (349) Business segments* 24,675 24,636 17,375 Total operating income 24,130 24,169 17,026 Other income (note 7) 789 174 3,138 Other expense (note 7) (703) (455) (836) Financial interest on debt (1,731) (1,214) (702) Financial income from marketable securities & cash equivalents 1,367 927 572 Cost of net debt (364) (287) (130) Other financial income (note 8) 592 396 321 Other financial expense (note 8) (277) (260) (227) Income taxes (note 9) (13,720) (11,806) (8,603) Equity in income (loss) of affiliates (note 12) 1,693 1,173 1,158 Consolidated net income from continuing operations (Group without Arkema) 12,140 13,104 11,847 Consolidated net income from discontinued operations (Arkema) (note 32) (5) (461) (698) Consolidated net income 12,135 12,643 11,149 Group share ** 11,768 12,273 10,868 Minority interests and dividends on subsidiaries’ redeemable preferred shares 367 370 281 Earnings per share (euros) (b) 5.13 5.23 4.50 Diluted earnings per share (euros) *** (b) 5.09 5.20 4.48 * Adjusted operating income from business segments 25,166 23,468 17,039 Adjusted net operating income from business segments 12,377 11,912 9,126 ** Adjusted net income 12,585 12,003 9,131 ***Adjusted diluted earnings per share (euros) (b) 5.44 5.08 3.76 (a) Except for per share amounts. (b) 2004 and 2005 amounts are recalculated to reflect the four-for-one stock split that took place on May 18, 2006. Earnings per share from continuing and discontinued operations are disclosed in Note 32 to the consolidated financial statements. 9 TOTAL – Registration Document 2006 169
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Registration Document 2006
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Registration Document 2006 This is
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Key figures Selected financial info
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116,842 Key figures Operating and m
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Refined product sales including Tra
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Business overview History and strat
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Upstream TOTAL’s Upstream segment
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Exploration & Production Exploratio
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Production For the full year 2006,
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Presentation of production activiti
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Europe Business overview Exploratio
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Africa TOTAL has been present in Af
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this zone through its subsidiaries
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North America Since 2004, TOTAL has
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Trinidad & Tobago TOTAL holds a 30%
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TOTAL also has a 50% interest in th
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Europe TOTAL’s production in Euro
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K6-GT platform, in anticipation of
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The Group also holds a 20% interest
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Gas & Power The Gas & Power divisio
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Asia Pacific The Hazira re-gasifica
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In Morocco, Temasol, in which TOTAL
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Refining & Marketing As of December
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Refined products The table below se
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capacity oil recycling plant in Fra
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In 2006, the principal market bench
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Base Chemicals TOTAL’s Base Chemi
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Specialties TOTAL’s Specialties s
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Investments Main investments made o
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Property, Plant and Equipment TOTAL
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Board of Directors Executive Commit
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Management Report of the Board of D
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Market environment 2006 2005 2004 E
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Upstream results Liquids and gas pr
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Downstream results For the full yea
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Liquidity and capital resources Lon
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Research and development Research a
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Trends and outlook Outlook Since th
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Risk Factors Market risks p. 76 •
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The Group has implemented strict po
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The non-current debt in dollars des
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Grande Paroisse An explosion occurr
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Myanmar Under the Belgian “univer
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Risk management Risk evaluations le
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TOTAL, like other major internation
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Insurance and risk management Organ
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Corporate Governance Board of Direc
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Daniel Bouton 56 years old. Inspect
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Bertrand Jacquillat 62 years old. A
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Michel Pébereau 64 years old. Hono
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Management General Management On Ma
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Corporate Governance Compensation o
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Pensions and other commitments (Art
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Within this framework, the Board’
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Members of the Audit Committee may
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Messrs. Bouton, Collomb, Desmarais,
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establishes and maintains procedure
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Employees, Share Ownership, Stock O
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Corporate Governance Employees, Sha
Page 119 and 120: TOTAL stock options Corporate Gover
Page 121 and 122: Corporate Governance Employees, Sha
Page 123 and 124: Corporate Governance Employees, Sha
Page 125 and 126: Restricted share plans as of Decemb
Page 127 and 128: TOTAL and its shareholders Listing
Page 129 and 130: Four-for-one stock split The Genera
Page 131 and 132: Information Summary TOTAL and its s
Page 133 and 134: Dividends Dividend policy In accord
Page 135 and 136: Share buybacks The General Meeting
Page 137 and 138: Summary table of transactions compl
Page 139 and 140: cancels and replaces the unused por
Page 141 and 142: which was approved by the French Co
Page 143 and 144: Shareholder structure Distribution
Page 145 and 146: Non-resident individual taxpayers e
Page 147 and 148: The Committee also worked on the co
Page 149 and 150: 2007 Calendar February 14 Results f
Page 151 and 152: Financial information Historical fi
Page 153 and 154: Additional information Financial in
Page 155 and 156: General information Share capital p
Page 157 and 158: Pursuant to this authorization, the
Page 159 and 160: Potential capital as of December 31
Page 161 and 162: General information Share capital J
Page 163 and 164: Directors’ Charter and Committees
Page 165 and 166: Other matters Employee incentives a
Page 167 and 168: Information on holdings General inf
Page 169: Statutory auditors’ report on the
Page 173 and 174: Consolidated statement of cash flow
Page 175 and 176: On February 13, 2007, the Board of
Page 177 and 178: G. Earnings per share Earnings per
Page 179 and 180: equal to the market price. For unli
Page 181 and 182: The net periodic pension cost is re
Page 183 and 184: (iii) Portion of intangible assets
Page 185 and 186: A. Information by business segment
Page 187 and 188: Appendix 1 - Consolidated financial
Page 195 and 196: ADJUSTMENTS TO OPERATING INCOME 200
Page 197 and 198: In 2006, gains and losses on sales
Page 201 and 202: Property, plant and equipment prese
Page 203 and 204: 14) Other non-current assets As of
Page 205 and 206: The variation of the weighted-avera
Page 207 and 208: 18) Employee benefits obligations P
Page 209 and 210: The components of the net periodic
Page 211 and 212: 20) Financial debt and related fina
Page 215 and 216: Impact on net income The amount of
Page 217 and 218: 23) Commitments and contingencies A
Page 219 and 220: Other guarantees given Non-consolid
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Appendix 1 - Consolidated financial
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25) Payroll and staff For the year
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The classification by strategy and
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B) Financial instruments related to
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29) Market risks Oil and gas market
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As a result of its policy for manag
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3) The Group has recorded provision
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Appendix 1 - Consolidated financial
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53.2% 95.7% Elf Aquitaine 99.5% 100
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Oil and gas reserves p. 238 • Cha
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Changes in liquids reserves Appendi
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Changes in liquids and gas reserves
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Costs incurred in oil and gas prope
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Appendix 2 - Supplemental oil and g
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Other information Accounting for ex
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Appendix 3 - TOTAL S.A. Special aud
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(Free translation of a French langu
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Balance Sheet (TOTAL S.A.) Appendix
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Statement of changes in Shareholder
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2) Property, plant and equipment As
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6) Shareholders’ equity A) Common
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7) Contingency reserves As of Decem
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11) Translation adjustment The appl
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20) Commitments As of December 31 (
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TOTAL share purchase options plans
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Appendix 3 - TOTAL S.A. Parent comp
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List of marketable securities held
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Distribution of earnings 2006 Net d
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Social and environmental informatio
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AVERAGE COMPENSATION PER MONTH - TO
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Environment Pursuant to French law
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Consolidated financial information
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European Cross Reference List 10. C
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TOTAL S.A. Registered Office: 2, pl
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Registration document 2007 - Total.com

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