Page 24 - Suncor AR English

SUNCOR OVERVIEW

2. SUNCOR OVERVIEW

Suncor is an integrated energy company headquartered in Calgary, Alberta, Canada. We are strategically focused on
developing one of the world’s largest petroleum resource basins – Canada’s Athabasca oil sands. In addition, we explore

for, acquire, develop, produce and market crude oil and natural gas in Canada and internationally; we transport and
refine crude oil, and we market petroleum and petrochemical products primarily in Canada. Periodically, we market third-

party petroleum products. We also conduct energy trading activities focused principally on the marketing and trading of
crude oil, natural gas and byproducts. For a description of Suncor’s business segments, refer to the Segment Results and

Analysis section of this MD&A.

Suncor’s Strategy
We are committed to delivering competitive and sustainable returns to shareholders by focusing on capital discipline,

operational excellence and long-term profitable growth, and by leveraging our competitive differentiators; an
industry-leading Oil Sands resource base, a proven integrated model, financial strength, industry expertise and a

commitment to sustainability. Key components of Suncor’s strategy include:

• Profitably operate and develop our resources – Suncor’s growth portfolio is focused on projects that are expected to
provide long-term profitability for the company. The company’s significant resource base and industry expertise at Oil

Sands has laid the groundwork for achieving this growth. Suncor’s economies of scale have also allowed us to focus
on near-term oil sands growth through low-cost debottlenecking and expansion projects.

• Optimize value through integration – From the ground to the gas station, Suncor optimizes its profit through each

step of the value chain. As upstream production grows, securing access to global pricing through the company’s
refining operations and midstream logistics network helps to maximize profit on each upstream barrel.

• Achieve industry leading unit costs in each business segment – Through our focus on operational excellence, we’re
aiming to get the most out of our operations. Driving down costs and a continued focus on reliability will help to

achieve this.

• Industry leader in sustainable development – We’re focused on delivering triple bottom line sustainability, which means
leadership in environmental performance, social responsibility and creating a strong economy. We are committed to

our environmental goals that go beyond compliance in the areas of land reclamation, air emissions, freshwater use
and energy efficiency.

2013 Highlights
Return of cash to shareholders increases by over 25%.

Suncor shareholders received approximately $2.8 billion in
Suncor reports strong financial results.
cash from the company during 2013 through share
• Net earnings for 2013 were $3.911 billion, compared
to $2.740 billion in 2012.
repurchases and dividends, a 25% increase over the prior
year, reinforcing Suncor’s commitment to its shareholders.

• Operating earnings(1) for 2013 were $4.700 billion, • The company returned $1.1 billion in dividends, reflecting
compared to $4.847 billion in 2012.
the 54% increase to Suncor’s quarterly dividend
• Cash flow from operations(1) for 2013 was
announced in early 2013, and $1.7 billion through the

$9.412 billion, compared to $9.733 billion in 2012.
repurchase of 49.5 million common shares in 2013, at a
weighted average price of $33.84 per share.
• ROCE(1) (excluding major projects in progress) was 11.5%
for the twelve months ended December 31, 2013,
• On February 3, 2014, Suncor’s Board of Directors
compared to 7.2% for the twelve months ended approved a 15% increase to its quarterly dividend to
December 31, 2012. ROCE for the twelve months ended
$0.23 per common share and authorized additional
December 31, 2013 increased over the same period of share repurchases of up to $1 billion.
2012 primarily due to an after-tax impairment charge of

$1.487 billion relating to the Voyageur upgrader project
that reduced ROCE for the twelve months ended

December 31, 2012 by approximately 4%.

20 SUNCOR ENERGY INC. ANNUAL REPORT 2013