Exxon 2015 Annual Report Download - page 29

Supplying Global Growth
As a result of megatrends, such as an expanding
middle class, urbanization, and sustainability,
chemical demand is growing faster than the broader
economy. When individuals enter the middle class,
their discretionary spending increases, and their buying
habits change. People who once shopped at local
markets begin to shop at grocery stores, where
food is sold in plastic-based packaging. They start
to buy appliances and cars, which have significant
plastic content. In addition, the movement of
people from rural to urban settings produces
a net increase in households because city
households tend to have fewer people. More
households equates to increased demand for energy
and chemicals. Finally, chemical products are essential
for reducing the environmental impact of human
progress. As examples, lighter plastic components
in vehicles increase fuel efficiency, and plastic
packaging extends the life of food products,
reducing spoilage and waste. In addition, many plastic
products can also be reused or recycled.
These megatrends are most pronounced in emerging economies,
resulting in increased global trade to meet demand. With the volume
of chemical products traded between regions expanding, we plan to build
on our existing global supply chain and commercial and technical resources
to further penetrate growth markets. For example, we recently enhanced our global supply chain by updating our
enterprise management system to improve both our systems capabilities and business processes. The upgraded system
delivers enhanced data visibility, improved user interfaces, and new tools for optimization. These advances will make global
product flows to customers more robust through dynamic coordination among manufacturing, supply chain, and customer
service organizations. We are also continuing to expand our sales and marketing workforces in Asia Pacific, Latin America,
and the Middle East to better serve growing demand in these regions.
Chemical: Industry-Leading Returns(1)
(billions of dollars)
(10-year average, 2006–2015)
Revenue
(billions of dollars)
Earnings
(percent)
Return on Average Capital Employed(2)
(1) Competitor data estimated on a consistent basis with ExxonMobil and based on public information. Chemical segments only: Royal Dutch Shell and Total
(Total data only available through 2011). Dow Chemical shown on a corporate total basis.
(2) See Frequently Used Terms on pages 44 and 45.
(3) Royal Dutch Shell revenue data only available through 2014.
Eric Whetstone • Whetstone Design
EDITOR
Clark Fertitta • Investor Relations
Exxon Mobil Corporation, Irving, TX
Carol Zuber-Mallison • ZM Graphics, Inc.
studio/cell: 214-906-4162 • fax: [phone]
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chemical demand is growing faster than the broader
economy. When individuals enter the middle class,
their discretionary spending increases, and their buying
habits change. People who once shopped at local
food is sold in plastic-based packaging. They start
to buy appliances and cars, which have significant
households equates to increased demand for energy
and chemicals. Finally, chemical products are essential
for reducing the environmental impact of human
progress. As examples, lighter plastic components
reducing spoilage and waste. In addition, many plastic
These megatrends are most pronounced in emerging economies,
resulting in increased global trade to meet demand. With the volume
Halobutyl and EPDM rubbers
are used to make automotive
products, such as tire innerliners,
window and door seals,
fan belts, and radiator hoses.
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