-the success and the economic efficiency of oil and natural gas exploration, development and production programs, including, without limitation, those that are not controlled and/or operated by TOTAL;

-uncertainties about estimates of changes in proven and potential reserves and the capabilities of production facilities;

-uncertainties about the ability to control unit costs in exploration, production, refining and marketing (including refining margins) and chemicals;

-changes in the current capital expenditure plans of TOTAL;

-the ability of TOTAL to realize anticipated cost savings, synergies and operating efficiencies;

-the financial resources of competitors;

-changes in laws and regulations, including tax and environmental laws and industrial safety regulations;

-the quality of future opportunities that may be presented to or pursued by TOTAL;

-the ability to generate cash flow or obtain financing to fund growth and the cost of such financing and liquidity conditions in the capital markets generally;

-the ability to obtain governmental or regulatory approvals;

-the ability to respond to challenges in international markets, including political or economic conditions (including national and international armed conflict) and trade and regulatory matters (including actual or proposed sanctions on companies that conduct business in certain countries);

-the ability to complete and integrate appropriate acquisitions, strategic alliances and joint ventures;

For additional factors, please refer to "“Item 3. - 3.2 Risk factors"”, "“Item 5. Operating and financial review and prospects"” and "“Item 11. Quantitative and qualitative disclosures about market risk"”.

The Group andconducts its businesses are subjectactivities in an ever-changing environment. It is exposed to various risks relatingthat, if they were to changing competitive, economic, political, legal, social, industry,occur, could have a material adverse effect on its business, and financial conditions, including changes in such conditions. Point 3.1 ("Risk factors"condition, reputation, outlook, or the TOTAL S.A.’s share price. Points 3.1.1 (“Environmental parameters”) to 3.1.6 (“Innovation”) of chapter 3 of the 2018Universal Registration Document 2019 (starting onpage 7483) is, which are incorporated herein by reference.reference, present the significant risk factors specific to the Group, to which it believes it is exposed as of the filing date of this annual report on Form 20-F. However, the Group may be exposed to othernon-specific risks, or of which it may not be aware, or which it may be underestimating the potential consequences of, or other risks that may not have been considered by the Group as being likely to have a material adverse impact on the Group, its business, financial condition, reputation or outlook.

For additional information on these conditions,the risks to which TOTAL believes it is exposed as of the filing date of this annual report on Form 20-F, along with TOTAL’s approaches to managing certain of these risks, please refer to "“Item 5. Operating and financial review and prospects"” and "“Item 11. Quantitative and qualitative disclosures about market risk"”, as well as points 3.3 ("(“Internal control and risk management procedures"procedures”) and 3.5 ("3.6 (“Vigilance Plan"Plan”) of chapter 3 (starting onpages 8693 and93102, respectively) of the 2018Universal Registration Document 2019, which are incorporated herein by reference.

ITEM 4. Information on the company INFORMATION ON THE COMPANY

The following information providing an integrated overview of the Group from the 2018Universal Registration Document 2019 is incorporated herein by reference:

-presentation of the Group and its governance (point 1.1 of chapter 1, starting on page 4);

-the Group’s collective ambition and strategy (point 1.2 of chapter 1, on page 9);

-history, employees, integrated business model and geographic presence (point 1.3 of chapter 1, starting on page 10);

-an overview of the Group’s R&D, investment policy and sustainable development initiatives (point 1.5 of chapter 1, on page 23); and

-organizational structure (point 1.6 of chapter 1, starting on page 26

The following information providing an overview of the Group’s businesses and activities from the 2018Universal Registration Document 2019 is incorporated herein by reference:

-business overview for fiscal year 2018 (points 2.1 to 2.4 of chapter 2, starting on page 32);

-information concerning the Group’s principal capital expenditures and divestitures (point 2.5 of chapter 2, starting on page 68). See also "Item 5. Operating and financial review and prospects"; and

-geographical breakdown of the Group’s sales, property, plants and equipment, intangible assets and capital expenditures over the past three years (Note 4 to the Consolidated Financial Statements, on page 276

The following other information from the 2018Universal Registration Document 2019 is incorporated herein by reference:

-insurance policy (point 3.4 of chapter 3, starting on page 92);

-non-financial performance (points 5.1 to 5.11 of chapter 5, starting on page 179); and

-investor relations (point 6.6 of chapter 6, starting on page 239).

ITEM 4A. Unresolved staff comments UNRESOLVED STAFF COMMENTS

None.

ITEM 5. Operating and financial review and prospects OPERATING AND FINANCIAL REVIEW AND PROSPECTS

This section is the Company’s analysis of its financial performance and of significant trends that may affect its future performance. It should be read in conjunction with the Consolidated Financial Statements and the Notes thereto in the 2018Universal Registration Document 2019 (starting onpage 249281), which are incorporated herein by reference. The Consolidated Financial Statements and the Notes thereto are prepared in accordance with IFRS as issued by the IASB and IFRS as adopted by the EU.

This section contains forward-looking statements that are subject to risks and uncertainties. For a list of important factors that could cause actual results to differ materially from those expressed in the forward-looking statements, see "Cautionary“Cautionary Statement Concerning Forward-Looking Statements"Statements” starting onpage i.

Critical accounting policies and standards applicable in the future

For an overview of TOTAL’s critical accounting policies, including policies involving management’s judgment and estimates and significant accounting policies applicable in the future, refer to the Introduction and Note 1.2 ("(“Significant accounting policies applicable in the future"future”) of the Notes to the Consolidated Financial Statements in the 2018Universal Registration Document 2019 (starting onpages 260292 and262294, respectively), which is incorporated herein by reference.

5.1

TOTAL’s results are affected by a variety of factors, including changes in crude oil and natural gas prices as well as refining and marketing margins, which are all generally expressed in dollars, and changes in exchange rates, particularly the value of the euro compared to the dollar. Higher crude oil and natural gas prices generally have a positive effect on the income of TOTAL, since the Exploration & Production segment’s oil and gas business and Integrated Gas, Renewables & Power segment’s downstream gas business are positively impacted by the resulting increase in revenues. Lower crude oil and natural gas prices generally have a corresponding negative effect. The effect of changes in crude oil prices on the activities of TOTAL’s Refining & Chemicals and Marketing & Services segments depends upon the speed at which the prices of refined petroleum products adjust to reflect such changes. TOTAL’s results are also significantly affected by the costs of its activities, in particular those related to exploration and production, and by the outcome of its strategic decisions with respect to cost reduction efforts. In addition,

TOTAL’s results are affected by general economic and political conditions and changes in governmental laws and regulations, as well as by the impact of decisions by OPEC on production levels. For more information, refer to "“Item 3. - 3.2 Risk factors"”.

BenefitingIn 2019, the Group generated cash flow (DACF)⁽¹⁾ of $28.5 billion, a strong growth of $2.4 billion compared to 2018, due to a positive contribution from all segments. This performance was achieved despite the rise ofdecrease in oil prices and European gas prices of respectively 10% and 38%, corresponding to $71/ba decrease of the price environment by approximately 20% on average in 2018 compared to $54/b in 2017, while remaining volatile, the2019. The Group reported solid adjusted net income for 2019 of $13.6$11.8 billion, in 2018, an increasea decrease of 28%13%, and a return on average capital employed closeequity above 10%. The Group reduced itspre-dividend organic cash breakeven to 12%,less than $25/b.

In the highest among the majors,Upstream⁽²⁾,start-ups and a pre-dividend breakeven below $30/b.

These excellent results reflect the strong growth of more than 8% for the Group’s hydrocarbon production, which reached a record level of 2.8 Mboe/d in 2018 and led to a 71% increase in Exploration & Production’s adjusted net operating income. The year was highlighted by the start-up of Ichthys in Australia,ramp-ups including Yamal LNG in Russia deep-water projects Kaombo Norteand Ichthys in Angola andAustralia, Egina in Nigeria as well asand Kaombo in Angola, generated strong cash flow and fueled production growth of 9% for the counter-cyclical acquisitionsyear, with an increase in LNG production of Maersk Oil and new offshore licenses innearly 50%.

The Exploration & Production segment’s cash flow⁽³⁾ increased to $18 billion, despite the United Arab Emirates.

TOTAL’s net income (Group share) in 2018 increased by 33% to $11,446 million in 2018deterioration of the environment. The iGRP segment generated a cash flow⁽³⁾ of $3.7 billion, an increase of 81% compared to $8,631 million in 2017, mainly2018, mostly due to higher hydrocarbon pricesthe increase in LNG sales of nearly 60%.

The Downstream⁽⁴⁾generated a cash flow⁽³⁾ of $6.6 billion, notably due to itsnon-cyclical activities and growthdespite a decrease in refining and petrochemical margins of approximately 10% in 2019.

Net investments⁽⁵⁾ rose to $17.4 billion and reflect in particular the strategy to strengthen LNG and deep offshore, as demonstrated by the acquisition of Mozambique LNG and the launch of Arctic LNG 2 in Russia and Mero 2 in Brazil. More thanone-third of the Group’s production. Adjustments to2019 net income (Group share),investments were made in the iGRP segment, which includeleads the after-tax inventory effect, special itemsGroup’s low carbon ambition. The Group enters the gas and the impact of changesrenewables market in fair value, hadIndia in partnership with Adani and will build a negative impact of $2,113 milliongiant 800 MW solar power plant in 2018. Excluding these items, as mentioned above, adjusted net income (Group share) increased by 28% to $13,559 million in 2018, compared to $10,578 million in 2017, in line with the contribution from the segments. For additional information, refer to "- 5.2 Group results 2016-2018" and "- 5.3 Business segment reporting", below.Qatar.

In addition,2019, the Group maintained a solid financial position with gearing⁽⁶⁾ ratio of 16.7% excluding capitalized leases (20.7% including).

In accordance with the decision of the board of directors of TOTAL S.A. announced on September 24, the Group increased the 2019 final dividend by 6% to€0.68 per share. Including the interim dividends, the full-year 2019 dividend increased by 5% to€2.68 per share. Finally, the Group bought back $1.75 billion of its financial discipline. Net investments ⁽¹⁾ were $15.6 billionshares in 2018,2019.

Outlook

The environment remains volatile, given the uncertainty about hydrocarbon demand related to the outlook for global economic growth and a context of geopolitical instability.

The Covid-19 epidemic that began in line with its objective,December 2019, in China, has been impacting demand since the beginning of the first quarter 2020 and $4.2 billionhas caused oil prices to fall significantly.

In this context of oversupply, the decision on March 6, 2020 by OPEC and Russia to stop their cooperation on the markets caused crude oil prices to fall sharply, by around 30%.

A decrease in cost reduction was achieved. Debtthe average sales price of liquids of 10 dollars per barrel results over a quarter in a decrease of an adjusted cash flow (DACF) ⁽²⁾ was $26 billion in 2018, driven largely by the 31% increasenet operating income of approximately $725 million and a decrease in cash flow from Exploration & Production. Theoperating activities of approximately $825 million.

Despite the uncertainties related to Covid-19 and oil supply policies, the Group’s balance sheet was solid with a gearing ⁽³⁾ ratio of 15.5%, below the target limit of 20%.fundamentals remain strong.

The Group is continuing to expand alonghas an organic cash break-even less than 25 $/b and a controlled level of debt (gearing excluding leases of 17% as at December 31, 2019). Since 2015, it has implemented a spending discipline policy and announced in September 2019 the value chainextension of integrated gas and low-carbon electricity. With its acquisitionsavings programs beyond 2020. In addition, it has flexibility on its investment programs since almost 20% of Engie’s LNG assets TOTAL is the second largest publicly-traded playerupstream CAPEX are short cycle capex, i.e. flexible in the LNG business, and its position will be strengthened with the 2019 start-up of the Cameron LNG project. In addition, the Group accelerated its growth in low-carbon electricity, notably with the acquisition of Direct Énergie.short term.

In an environment of lower European refining margins, the Downstream relied on the availability of its units and the diversity of its portfolio to generate $6.5 billion of cash flow and profitability of more than 25%. The Group is continuingexpects to continue to implement its strategy for growth in petrochemicals by launching projects in the United States, Saudi Arabia, South Korea and Algeria. TOTAL has also continued to expand Marketing & Services in fast-growing areas, notably in Mexico, Brazil and Angola.

Conforming to the shareholder return policy announced in February 2018, the Group increased the 2018 dividend by 3.2% and bought back $1.5 billion of its shares in 2018. Given the solid financial position, which is benefiting from growing cash flow, the Board of Directors confirmed the shareholder return policy for 2019. It plans to increase the interim dividend by 3.1% to 0.66 euros per share, end the scrip dividend option following the general assembly meeting, and continue the share buyback policy in the amount of $1.5 billion in a $60/b environment.

Outlook

Since the start of 2019, Brent has traded around $60/b in a context of oil supply and demand near the record-high level of 100 Mb/d. In a volatile environment, the Group is pursuing its strategy for integrated growth along the oil, gas and low-carbon electricity chains.

The Group has clear visibility on its 2019 cash flow, supported by the strong contribution of project start-ups in 2018 and recent acquisitions.

The Group maintains financial discipline to reduce its breakeven to remain profitable across a broader range of environments. In particular, it is targeting cost reductions of $4.7 billion, projected net investments of $15-16 billion in 2019 and an Opex target of $5.5/boe.

In Exploration & Production, production is expected to grow by more than 9% in 2019, thanks to the ramp-ups of Kaombo Norte, Egina and Ichthys plus the start-ups of Iara 1 in Brazil, Kaombo South in Angola, Culzean in the UK and Johan Sverdrup in Norway. Determined to take advantage of the favorable cost environment, the Group plans to launch projects in 2019, notably including Mero 2 in Brazil, Tilenga and Kingfisher in Uganda and Arctic LNG 2 in Russia.

The Group is pursuing its strategy for profitable growth alongon the integrated gas andlow-carbon electricity chains. Effective 2019,LNG sales are expected to benefit, notably in 2020, from the Group will report the new iGRP segment (integrated Gas, Renewables & Power) which combines the Gas, Renewables & Power segment with the upstream gas andstart-ups of Yamal LNG activities currently reported within the Exploration & Production segment.

Affected by an abundance of available products, European refining margins have been very volatile since the start of the year. In 2019, the Downstream will continue to rely on its diversified portfolio, notably its integrated Refining & Chemical platforms in the U.S. and Asia-Middle Easttrain 4 as well as its non-cyclical Marketing & Services segment.Cameron LNG train 3 and are expected to be higher than 30 million tons per year.

In this context, the Group is continuing to implement its shareholder return policy announced in February 2018, by increasing the dividend in 2019 by 3.1%, in line with the objective to increase the dividend by 10% over the 2018-20 period. Taking into account its strong financial position, the Group will eliminate the scrip dividend option from June 2019. Within the framework of its program to buy back $5 billion of shares over the 2018-20 period, the Group expects to buy back $1.5 billion of its shares in 2019 in a $60/b Brent environment (for additional information concerning the Group’s dividends and dividend policy, refer to point 6.2 of chapter 6 (starting on page 229) of the 2018 Registration Document, which is incorporated herein by reference).

(2)  DACF= debt adjusted cash flow, is defined as cash flow from operating activities before changes in working capital at replacement cost, without financial charges.

(2) The Group Upstream hydrocarbons activities include the oil and gas exploration and production activities of the Exploration & Production and the Integrated Gas, Renewables & Power segments. They do not include power generation facilities based on renewable sources or natural gas such as combined-cycle natural gas power plants.

(3) "Gearing"Operating cash flow before working capital changes is defined as cash flow from operating activities before changes in working capital at replacement cost, without financial charges except those related to leases.

(6)“Gearing” refers to the net-debt-to-capital-ratio. "Net-debt-to-capital-ratio"“Net-debt-to-capital-ratio”= net debt/ (net debt + shareholders’ equity). For additional information, refer to Note 15.1(E) ("15.1 (E) (“Net-debt-to-capital ratio"ratio”) to the Consolidated Financial Statements in the 2018Universal Registration Document 2019 (onpage 325357), which is incorporated herein by reference.

For a discussion of the Group’s proved reserves, refer to point 2.52.3.1 (“Hydrocarbons reserves”) of chapter 2 of the 2018Universal Registration Document 2019 (starting onpage 6849), which is incorporated herein by reference.

(c)  Including divestments See also point 9.1 (“Oil and reimbursementsgas information pursuant toFASBAccounting Standards Codification 932”) of non-current loans.

(d)  "Net investments" = gross investments - divestments - repaymentchapter 9 of non-current loans - other operations with non-controlling interests. Forthe Universal Registration Document 2019 (starting onpage 402), which is incorporated herein by reference, for additional information on investments,proved reserves, including tables showing changes in proved reserves by region.

2019 vs. 2018

In 2019, market conditions were less favorable than in 2018. The Brent price decreased to $64.2/b on average in 2019 from $71.3/b on average in 2018, while remaining volatile. In 2019, TOTAL’s average liquids price realization⁽⁸⁾ decreased by 7% to $59.8 in 2019 from $64.3/b in 2018. TOTAL’s average gas price realization⁽⁸⁾ decreased by 20% to $3.88/Mbtu in 2019 from $4.87/Mbtu in 2018. The Group’s European refining variable cost margin (“VCM”) decreased by 9% to $34.9/t on average in 2019 compared to $38.2/t in 2018, mainly due to decreasing crude oil prices.

For the full-year 2019, hydrocarbon production was 3,014 kboe/d, an increase of 9% compared to 2,775 in 2018, due to:

The euro-dollar exchange rate averaged $1.1195/€ in 2019, compared to $1.1810/€ in 2018.

Non-Group sales were $200,316 million in 2019 compared to $209,363 million in 2018, a decrease of 4% reflecting the decreased hydrocarbon prices, partially offset by the increase of the Group’s production in 2019. In 2019,Non-Group sales decreased by 27% for the Exploration & Production segment, 5% for the Refining & Chemicals segment and 3% for the Marketing & Services segment. The Integrated Gas, Renewables & Power segment’sNon-Group sales increased by 5% in 2019.

Net income (Group share) decreased by 2% to $11,267 million in 2019 compared to $11,446 million in 2018, mainly due to lower hydrocarbon prices, partially offset by growth of the Group’s hydrocarbon production. In 2019, adjustments to net income (Group share), which include theafter-tax inventory effect, special items and the impact of changes in fair value, had a negative impact of $561 million mainly due to impairments on assets mainly located in the United States (Utica, Chinook). For a detailed overview of adjustment items for 2019, refer to point 2.5 of chapter 2 ofNote 3 to the 2018Consolidated Financial Statements in the Universal Registration Document 2019 (starting onpage 68296), which is incorporated herein by reference. In 2018, adjustments to net income (Group share), which include theafter-tax inventory effect, special items and the impact of changes in fair value, had a negative impact of $2,113 million, mainly due to an inventory effect and an impairments on Ichthys related to the sale of a partial interest by the Group, as well as the impairment of production facilities by SunPower⁽⁹⁾.

(e)  "Organic investments" =Income taxes in 2019 amounted to $5,872 million, a decrease of 9.9% compared to $6,516 in 2018, due to the relative weight and lower tax rates in the Upstream and a lower hydrocarbon price environment.

In 2019, the Company bought back 52,389,336 TOTAL shares on the market, i.e. 2.01% of the Company’s outstanding share capital as of December 31, 2019. See also “- 5.4.4 Shareholders’ equity”, below. In 2018, the Company bought back 72,766,481 TOTAL shares on the market, i.e., 2.76% of the Company’s outstanding share capital as of December 31, 2018.

Fully-diluted earnings per share was $4.17 in 2019 compared to $4.24 in 2018, a decrease of 2%.

Asset sales completed were $1,939 million for the full-year 2019, comprised notably of the payment received upon the take-over of the Toshiba LNG portfolio in the United States, the sale of the interest in the Wepec refinery in China, the sale of the Group’s interest in the Hazira terminal in India and polystyrene activities in China. Asset sales completed were $5,172 million for the full-year 2018, comprised of the sale of a 4% interest in the Ichthys project in Australia and the sale of the Group’s share of the LNGre-gas terminal at Dunkirk, as well as the sale of Joslyn in Canada, Rabi in Gabon, the Martin Linge and Visund fields in Norway, an interest in Fort Hills in Canada, SunPower’s sale of its interest in 8point3, the marketing activities of TotalErg in Italy, the Marketing & Services network in Haiti, and the contribution of the Bayport polyethylene unit in the United States to the joint venture formed with Borealis and Nova in which TOTAL holds 50%.

Acquisitions⁽¹⁰⁾ completed were $5,991 million for the full-year 2019, comprised mainly of the acquisition of Anadarko’s interest in Mozambique LNG, the acquisition of a 10%-stake in the Arctic LNG 2 project in Russia and the acquisition of Chevron’s

(8)Consolidated subsidiaries, excluding stock value variation.

(9) As at December 31, 2019, TOTAL held an interest of 46.74% in SunPower. As at December 31, 2018, TOTAL held an interest of 55.66% in SunPower, an American company listed on NASDAQ and based in California.

(10) Acquisitions net investments, excluding acquisitions, divestments and otherof operations with non-controlling interests. For additional information on investments, refer to point 2.5 of chapter 2

interest in the Danish Underground Consortium in Denmark. Acquisitions⁽¹⁰⁾ completed were $8,314 million for the full-year 2018, including $4,493 million in resource acquisitions⁽¹¹⁾, comprised of the 2018 Registration Document (starting on page 68), which is incorporated herein by reference.

(f)  "Resource acquisitions"=extension of licenses in Nigeria and the acquisition of a participating interestnetwork of service stations in an oil and gas mining property by wayBrazil, as well as notably the acquisitions of an assignment of rights and obligationsDirect Énergie, Engie’s LNG business, the increase in the corresponding permit or licenseshare of Novatek to 19.4%, interests in the Iara and related contracts, with a viewLapa fields in Brazil, two new40-year offshore concessions in Abu Dhabi, which follow the previous Abu Dhabi Marine Areas Ltd (ADMA) offshore concession, and the acquisition of offshore assets from Cobalt in the Gulf of Mexico.

The Group’s cash flow from operating activities for the full-year 2019 was $24,685 million compared to producing$24,703 million for the recoverable oil and gas.

(g)full-year 2018. The change in working capital at replacement cost for the full-year 2019, which is the increase in working capital of $1,718 million as determined usingin accordance with IFRS adjusted for thepre-tax inventory valuation effect of $446 million, was $1,272 million, compared to $174 million for the full-year 2018. Operating cash flow excluding the change in working capital at replacement cost methodfor the full-year 2019 was $174$26,432 million⁽¹²⁾, an increase of 8% compared to $24,529 million for the full-year 2018. Operating cash flow excluding the change in 2018, $1,184 million in 2017 and $(467) million in 2016. For information on theworking capital at replacement cost method, referand excluding financial charges (DACF) for the full-year 2019 was $28,501 million, an increase of 9% compared to Note 3 ("Business segment information"$26,067 million for the full-year 2018. The Group’s net cash flow⁽¹³⁾ remained stable in 2019 at $8,983 million for the full-year 2019, compared to 8,961 for the Consolidated Financial Statementsfull-year 2018. Thestart-up of strong cash flow generating projects such as Yamal LNG in Russia, Ichthys in Australia, Kaombo in Angola and Egina in Nigeria offset the 2018 Registration Document (starting on page 265)impact of lower Brent and gas prices.

See also “- 5.4 Liquidity and Capital Resources”, which is incorporated herein by reference.below.

2018 vs. 2017

In 2018, market conditions were more favorable than in 2017. The Brent price rose to $71/$71.3/b on average in 2018 from $54/$54.2/b in 2017, while remaining volatile. In 2018, TOTAL’s average liquids price realization ^(1)(14) increased by 28% to $64.2/b in 2018 from $50.2/b in 2017. TOTAL’s average gas price realization ^(2)(14) increased by 17%19% to $4.78/$4.87/Mbtu in 2018 from $4.08/$4.09/Mbtu in 2017. The Group’s European Refining MarginVCM Indicator ("ERMI") ⁽³⁾ decreased by 21%16% to $32.3/$38.2/t on average in 2018 compared to $40.9/$45.6/t in 2017.

For the full-year 2018, hydrocarbon production was 2,775 kboe/d, an increase of more than 8% compared to 2,566 in 2017, mainly due to rising crude oil prices.to:

The euro-dollar exchange rate averaged $1.1810/€ in 2018, compared to $1.1297/€ in 2017.

Non-Group sales were $209,363 million in 2018 compared to $171,493 million in 2017, an increase of 22% reflecting the increased hydrocarbon prices and Group production.Non-Group sales increased 30%by 52% for the Exploration & Production segment, 26%16% for the Integrated Gas, Renewables & Power segment, 22% for the Refining & Chemicals segment and 21% for the Marketing & Services segment.

Net income (Group share) in 2018 increased by 33% to $11,446 million in 2018 compared to $8,631 million in 2017, mainly due to higher hydrocarbon prices and growth of the Group’s production. Adjustments to net income (Group share), which include theafter-tax inventory effect, special items and the impact of changes in fair value, had a negative impact of $2,113 million in 2018, mainly due to an inventory effect and an impairmentimpairments on Ichthys related to the sale of a partial interest by the Group, as well as the impairment of production facilities by SunPower^(4)(16). For a detailed overview of adjustment items for 2018, refer to Note 3 to the Consolidated Financial Statements in the 2018Universal Registration Document 2019 (starting onpage 265296), which is incorporated herein by reference. In 2017, adjustments to net income (Group share), which included special items of $(2,213) million andafter-tax inventory valuation effect of $282 million, had a negative impact on net income (Group share) of $1,947 million. Special items in 2017 included mainly an impairmentimpairments of Fort Hills in Canada (following the operator announcement of the increase of the project’s costs), Gladstone LNG in Australia and assets in Congo, partially offset by a gain on the sale of Atotech. Excluding these items, adjusted net income increased by 28% to $13,559 million in 2018, compared to $10,578 million in 2017, in line with the contribution from the segments.

Income taxes in 2018 amounted to $6,516 million, 2.2 times higher than $3,029 million in 2017, due to the relative weight and higher tax rates in the Exploration & Production segment in a higher hydrocarbon price environment.

(2)  Consolidated subsidiaries, excluding fixed margins.stock value variation.

(3)(15) The ERMI is a Group indicator intended“PSC price effect” refers to represent the margin after variable costs for a hypothetical complex refinery located around Rotterdamimpact of changing hydrocarbon prices on entitlement volumes from production sharing and buyback contracts. For example, as the price of oil or gas increases above certain pre-determined levels, TOTAL’s share of production generally decreases.

(16) As at December 31, 2019, TOTAL held an interest of 46.74% in Northern Europe that processes a mix of crude oil and other inputs commonly supplied to this region to produce and market the main refined productsSunPower. As at prevailing prices in this region. The indicator margin may not be representative of the actual margins achieved by the Group in any period because of the Group’s particular refinery configurations, product mix effects or other company-specific operating conditions.

(4)  As of December 31, 2018, TOTAL held an interest of 55.66% in SunPower, an American company listed on NASDAQ and based in California.

expenses related to capital employed (dividends fromnon-consolidated companies, income from equity affiliates and capitalized interest expenses) and after income taxes applicable to the above. The income and expenses not included in net operating income that are included in net income are interest expenses related to long-term liabilities net of interest earned on cash and cash equivalents, after applicable income taxes (net cost of net debt andnon-controlling interests). Adjusted net operating income excludes the effect of the adjustments (special items and the inventory valuation effect) described above. For further discussion of the calculation of net operating income and the calculation of return on average capital employed (ROACE ^(1)(19)), see Note 3 to the Consolidated Financial Statements in the 2018Universal Registration Document 2019 (starting onpage 265296), which is incorporated herein by reference.

AsThe profitable growth in the gas and low carbon electricity integrated value chains is one of the key axes of TOTAL’s strategy. In order to give more visibility to these businesses, a new reporting structure for the business segments’ financial information has been implemented effective January 1, 2018, the reporting2019. The organization of the cash flow from operations atGroup’s activities is structured around the following four segments: Exploration & Production (EP), Integrated Gas, Renewables & Power (iGRP - comprising TOTAL’s integrated gas (including LNG) and low carbon electricity businesses and the upstream and midstream LNG activity that was previously reported in the EP segment), Refining & Chemicals and Marketing & Services. Certain figures for the years 2017 and 2018 have been restated in order to reflect the new reporting structure for the business segments’ financial information.

2019 vs. 2018

Non-Group sales for the EP segment level changedin 2019 were $7,261 million compared to $9,889 million in 2018, a decrease of 27%.

The EP segment’s adjusted net operating income was $7,509 million in 2019, a decrease of 12% compared to $8,547 million in 2018, due to the transferdecrease in hydrocarbon prices, despite strong production growth.

The effective tax rate decreased from 46.2% in 2018 to 41.5% in 2019, in line with the decrease in oil prices.

Adjusted net operating income for the EP segment excludes special items. In 2019, the exclusion of financial chargesspecial items had a positive impact of $929 million on the EP segment’s adjusted net operating income (for additional information, refer to Note 3 to the Corporate segment. The Corporate segment includesConsolidated Financial Statements in the Group’s holdingsUniversal Registration Document 2019 (starting onpage 296), which is incorporated herein by reference). In 2018, the exclusion of special items had a positive impact on the EP segment’s adjusted net operating income of $450 million due to impairments on assets located mainly in Algeria, Colombia and financial activities. As a result of this changeCongo (for additional information, refer to Note 3 to the Consolidated Financial Statements in reporting, the 2017 and 2016 comparative information is restated at the segment level.Universal Registration Document 2019 (starting onpage 296)).

2019 vs. 20162018

Production growth in 2019 was essentially related to thestart-up of Ichthys in Australia in the third quarter of 2018 and the successivestart-ups of Yamal LNG trains in Russia and thestart-up of the first Cameron LNG train in the United States in the second quarter of 2019.

In 2017, market conditions were more favorable than in 2016. The average realized price of liquids2019, LNG sales increased by 25%57% compared to 2018 for the same reasons and the average realized gas price by 15%.acquisition of the Engie portfolio of LNG contracts in the third quarter of 2018.

ForNon-Group sales for the full-year 2017, hydrocarbon production was 2,566 thousand barrels of oil equivalent per day (kboe/d),Integrated Gas, Renewables & Power segment in 2019 were $18,167 million compared to $17,236 million in 2018, an increase of 5% compared to 2,452 kboe/d in 2016, due to the following:

-+5% due to new start-ups and ramp-ups, notably Moho Nord, Kashagan, Edradour and Glenlivet, and Angola LNG;

-+2% portfolio effect, mainly due to taking over the giant Al Shaheen oil field concession in Qatar and acquiring an additional 75% interest in the Barnett shale in the United States, partially offset by the exit from the southern sector in the Republic of the Congo and asset sales in Norway;

-+1% related to improved security conditions in Libya and Nigeria; and

--3% due to natural field decline, the PSC price effect and OPEC quotas.

Non-Group sales for the Exploration & Production segment in 2017 were $8,477 million compared to $7,629 million in 2016, an increase of 11%.

The iGRP segment’s adjusted net operating income was $5,985$2,389 million in 2017, an increase2019, a decrease of 86%1% compared to $3,217$2,419 million in 2016, notably due to production growth, cost reductions2018, impacted by lower gas prices in Europe and an increaseAsia as well as higher depreciation, depletion and amortization expenses on new projects such as Ichthys in oilAustralia and gas prices.

The effective tax rate increased from 27.7%Yamal LNG in 2016 to 41.2% in 2017, in line with the rise in hydrocarbon prices.Russia.

Adjusted net operating income for the Exploration & ProductioniGRP segment excludes special items. TheIn 2019, the exclusion of special items had a positivenegative impact of $384 million on the iGRP segment’s adjusted net operating income in 2017 of $3,880 million. Special items mainly included impairments of Fort Hills in Canada (following(for additional information, refer to Note 3 to the operator announcement of the increase of the project’s costs), Gladstone LNG in Australia, assetsConsolidated Financial Statements in the Republic of the Congo and gas assets in the United Kingdom, as well as assets in the United States and Norway.Universal Registration Document 2019 (starting onpage 296). In 2016,2018, the exclusion of special items had a positive impact on the segment’s adjusted net operating income of $1,872$1,323 million. Special items mainly included impairments on Gladstone LNG in Australia, Angola LNGIchthys related to the sale of a partial interest by the Group and Laggan-Tormorethe impairment of production facilities by SunPower (for additional information, refer to Note 3(D) to the Consolidated Financial Statements in the United Kingdom, reflectingUniversal Registration Document 2019 (starting onpage 306), which is incorporated herein by reference).

In 2019, the decrease in gas price assumptions for the coming years.

Technical costs for consolidated affiliates, calculated in accordance with ASC 932 continued to fall, to $19.5/boe in 2017 compared to $20.4/boe in 2016. This decrease was mainly due to the reduction in production costs from $5.9/boe in 2016 to $5.4/boe in 2017.

TheiGRP segment’s cash flow from operating activities excluding financial charges, except those related to leases was $3,461 million, compared to $596 million for the full-year 2017 was $12,821 million, an increase of 30% compared2018 due to $9,866 millionstrong increases in 2016. Operatingproduction and LNG sales. In 2019, the iGRP segment’s operating cash flow for the full-year 2017 excluding the change in working capital at replacement cost and withoutexcluding financial charges, except those related to leases was $14,753$3,730 million, compared to $10,592 million in 2016, an increase of 39%.

In this context, the segment’s ROACE81% compared to $2,055 million for the full-year 2017 was 6% compared2018 due to 3% forstrong increases in production and LNG sales.

For information on the full-year 2016.

(2)  Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 932, Extractive industries - Oil and Gas.

5.3.2     Gas, Renewables & Power segment

(a)  For the definitions of "operating income" and "net operating income", refer to Note 3 to the Consolidated Financial Statements in the 2018Universal Registration Document 2019 (starting onpage 26574), which is incorporated herein by reference. See also “- 5.4 Liquidity and Capital Resources”, below.

(b)  AdjustedIn this context, the iGRP segment’s ROACE for special items. See Note 3the full-year 2019 was 6.3% compared to 7.5% for the Consolidated Financial Statements in the 2018 Registration Document (starting on page 265), which is incorporated herein by reference.

(c)  Including acquisitions and increases in non-current loans. For additional information on investments, refer to point 2.5 of chapter 2 of the 2018 Registration Document (starting on page 68), which is incorporated herein by reference.

(d)  Including divestments and reimbursements of non-current loans.

(e)  "Organic investments" = net investments, excluding acquisitions, divestments and other operations with non-controlling interests. For additional information on investments, refer to point 2.5 of chapter 2 of the 2018 Registration Document (starting on page 68), which is incorporated herein by reference.full-year 2018.

2018 vs. 2017

Non-Group sales for the Gas, Renewables & PoweriGRP segment in 2018 were $16,136$17,236 million compared to $12,854$14,804 million in 2017, an increase of 26%16%.

The iGRP segment’s adjusted net operating income was $756$2,419 million in 2018, 1.6 times25% higher than $485$1,929 million in 2017, notably due to the good performance of LNG and gas/power trading activities. The acquisitions of Direct Énergie and the LNG business of Engie account for the increase in investments to $3.5 billion in the full-year 2018, 4.4 times higher than $797 million in the full-year 2017.

Adjusted net operating income for the Gas, Renewables & PoweriGRP segment excludes special items. The exclusion of special items had a positive impact on the segment’s adjusted net operating income in 2018 of $751 $1,323��million. Special items included impairments on Ichthys related to the sale of a partial interest by the Group and the impairment of production facilities by SunPower (for additional information, refer to Note 3(D) to the Consolidated Financial Statements in the 2018Universal Registration Document 2019 (starting onpage 275306), which is incorporated herein by reference). In 2017, the exclusion of special items had a positive impact on the segment’s adjusted net operating income of $870$1,320 million.

The iGRP segment’s cash flow from operating activities excluding financial charges, except those related to leases was for the full-year 2018 was $(670)$596 million compared to $1,055$3,157 million for the full-year 2017. The increase in working capital related to the consolidation of the acquisitions of Direct Énergie and the LNG business of Engie was mainly responsible for the negative cash flow from operations in the full-year 2018. OperatingThe iGRP segment’s operating cash flow excluding the change in working capital at replacement cost and excluding financial charges was $513$2,055 million for the full-year 2018, an increasea decrease of 74%10% compared to $294$2,289 million for the full-year 2017.

For information on the iGRP segment’s investments, refer to point 2.52.6 (“Investments”) of chapter 2 of the 2018Universal Registration Document 2019 (starting onpage 6874), which is incorporated herein by reference. See also "- “- 5.4 Liquidity and Capital Resources"Resources”, below.

In this context, the iGRP segment’s ROACE for the full-year 2018 was 11%7.5% compared to 10%6.5% for the full yearfull-year 2017.

2017

2019 vs. 20162018

Refinery throughput volumes decreased by 10% in 2019 notably due to the shutdown for nearly six months of Grandpuits in France.

Non-Group sales for the Gas, RenewablesRefining & PowerChemicals segment in 20172019 were $12,854$87,598 million compared to $10,124$92,025 million in 2016, an increase2018, a decrease of 27%5%.

TheRefining & Chemicals segment’s adjusted net operating income was $485$3,003 million for the full-year 2019, a decrease of 11% compared to $3,379 million in 2017, an increase2018 notably due to a decrease of around 10% compared to $439 million in 2016.refining and petrochemical margins as well as lower throughput.

Adjusted net operating income for the Gas, RenewablesRefining & PowerChemicals segment excludes anyafter-tax inventory valuation effect and special items. TheIn 2019, the exclusion of special itemsthe inventory valuation effect had a positivenegative impact of $371 million on the Refining & Chemicals segment’s adjusted net operating income, in 2017compared to a positive impact of $870 million. Special items included an impairment concerning SunPower ⁽¹⁾ in$413 million for the United States given the depressed economic environment of the solar activity.full-year 2018. In 2016,2019, the exclusion of special items had a positive impact of $180 million on the Refining & Chemicals segment’s adjusted net operating income, compared to a positive impact of $533 million.$116 million for the full-year 2018.

TheIn 2019, the Refining & Chemicals segment’s cash flow from operating activities excluding financial charges, except those related to leases was $3,837 million compared to $4,308 million for the full-year 2017 was $1,055 million, an increase2018 due to a decrease of 79% compared to $589 millionapproximately 10% in 2016. Operatingrefining and petrochemical margins as well as lower throughput. In 2019, the Refining & Chemicals segment’s operating cash flow for the full-year 2017 excluding the change in working capital at replacement cost and withoutexcluding financial charges, was $294 millionexcept those related to leases decreased by 7% compared to $176 million in 2016, an increase of 67%.

In this context, the segment’s ROACE for the full-year 2017 was2018, from $4,388 million to $4,072 due to a decrease of approximately 10% compared to 9% forin refining and petrochemical margins as well as lower throughput.

For information on the full year 2016.

5.3.3 Refining & Chemicals segment

(a)  Includes sharesegment’s investments, refer to point 2.6 (“Investments”) of TotalErg, and African refineries reported in the Marketing & Services segment.

(b)  Based on distillation capacity at the beginningchapter 2 of the year.

(a)  For the definitions of "operating income" and "net operating income", refer to Note 3 to the Consolidated Financial Statements in the 2018Universal Registration Document 2019 (starting onpage 26574), which is incorporated herein by reference. See also “- 5.4 Liquidity and Capital Resources”, below.

(b)  Adjusted

In this context, the Refining & Chemicals segment’s ROACE for special items. See Note 3the full-year 2019 was 26.3% compared to 31% for the Consolidated Financial Statements in the 2018 Registration Document (starting on page 265), which is incorporated herein by reference.

(c)  Including acquisitions and increases in non-current loans. For additional information on investments, refer to point 2.5 of chapter 2 of the 2018 Registration Document (starting on page 68), which is incorporated herein by reference.

(d)  Including divestments and reimbursements of non-current loans.

(e)  "Organic investments" = net investments, excluding acquisitions, divestments and other operations with non-controlling interests. For additional information on investments, refer to point 2.5 of chapter 2 of the 2018 Registration Document (starting on page 68), which is incorporated herein by reference.full-year 2018.

2018 vs. 2017

Refinery throughput was stable in full-year 2018 compared to full-year 2017. Lower throughput in Europe linked to planned maintenance, notably at Antwerp during the second quarter, was offset by higher throughput outside Europe. The ERMI decreased to $32.3/t on average in 2018 compared to $40.9/t in 2017, a decrease of 21% mainly due to rising crude oil prices.

Non-Group sales for the Refining & Chemicals segment in 2018 were $92,025 million compared to $75,505 million in 2017, an increase of 22%.

The Refining & Chemicals segment’s adjusted net operating income was resilient at $3,379 million for the full-year 2018, a decrease of 11% compared to $3,790 million in 2017.

Adjusted net operating income for the Refining & Chemicals segment excludes anyafter-tax inventory valuation effect and special items. The exclusion of the inventory valuation effect had a positive impact on the segment’s adjusted net operating income in 2018 of $413 million compared to a negative impact of $298 million in 2017. The exclusion of special items had a positive impact on the segment’s adjusted net operating income in 2018 of $116 million, compared to a negative impact of $2,117 million in 2017.

TheIn 2018, the Refining & Chemicals segment’s cash flow from operating activities excluding financial charges for the full-year 2018 was $4,308 million, a decrease of 42% compared to $7,411 million for the full-year 2017. OperatingIn 2018, the Refining & Chemicals segment’s operating cash flow for the full-year 2018 excluding the change in working capital at replacement cost and excluding financial charges was $4,388 million compared to $4,728 million for the full-year 2017, a decrease of 7%.

For information on the Refining & Chemicals segment’s investments, refer to point 2.52.6 (“Investments”) of chapter 2 of the 2018Universal Registration Document 2019 (starting onpage 6874), which is incorporated herein by reference. See also "- “- 5.4 Liquidity and Capital Resources"Resources”, below.

In this context, the Refining & Chemicals segment’s ROACE for the full-year 2018 was 31% compared to 33% for the full yearfull-year 2017.

2017

2019 vs. 20162018

Refinery throughput decreasedIn 2019, petroleum product sales increased by 7% for the full-year 20172% compared to 2016 as a result of the definitive ending of distillation capacity at La Mède (France) and Lindsey (UK) and the temporary shutdown2018, notably due to Hurricane Harveybusiness developments in the United States. The ERMI increased to $40.9/t on average in 2017 compared to $34.1/t in 2016, an increase of 20% due to elevated petroleum product demand. In the fourth quarter of 2017, the ERMI was $35.5/t. Petrochemicals continued to benefit from a favorable environment albeit down compared to a year ago.African and American regions, notably Mexico and Brazil.

Non-Group sales for the RefiningMarketing & ChemicalsServices segment in 20172019 were $75,505$87,280 million compared to $65,632$90,206 million in 2016, an increase2018, a decrease of 15%3%.

The Marketing & Services segment’s adjusted net operating income was $3,790remained stable in 2019 at $1,653 million for the full-year 2017, a decrease of 10% compared to $4,195$1,652 million in 2016, notably due to the impact of Hurricane Harvey, the impact of modernization work on the Antwerp platform and the sale of Atotech in early 2017 as well as lower trading results due to the evolution of the market into backwardation ⁽¹⁾.2018.

Adjusted net operating income for the RefiningMarketing & ChemicalsServices segment excludes anyafter-tax inventory valuation effect and special items. TheIn 2019, the exclusion of the inventory valuation effect had a negativepositive impact of $14 million on the Marketing & Services segment’s adjusted net operating income, in 2017 of $298 million compared to a negativepositive impact of $500$5 million in 2016. Thefor the full-year 2018. In 2019, the exclusion of special items had a negativepositive impact of $84 million on the Marketing & Services segment’s adjusted net operating income, in 2017 of $2,117 million, consisting essentially of a gain on the sale of Atotech, compared to a positive impact of $169$31 million in 2016.for the full-year 2018.

TheIn 2019, the Marketing & Services segment’s cash flow from operating activities excluding financial charges, forexcept those related to leases decreased by 6% compared to the full-year 2017 was $7,4112018, from $2,759 million an increase of 62% compared to $4,584 million in 2016. Operating$2,604 million. In 2019, the Marketing & Services segment’s operating cash flow for the full-year 2017 excluding the change in working capital at replacement cost and withoutexcluding financial charges, except those related to leases was $4,728$2,546 million, an increase of 18% compared to $4,873$2,156 million in 2016, a decrease of 3%.

In this context, the segment’s ROACE for the full-year 2017 was 33% compared to 38% for2018.

For information on the full year 2016.

5.3.4 Marketing & Services segment

(a)  Excludes trading and bulk Refining sales, which are reported under the Refining & Chemicals segment; includes share of TotalErg.

(a)  For the definitions of "operating income" and "net operating income",segment’s investments, refer to Note 3 topoint 2.6 (“Investments”) of chapter 2 of the Consolidated Financial Statements in the 2018Universal Registration Document 2019 (starting onpage 26574), which is incorporated herein by reference. See also “- 5.4 Liquidity and Capital Resources”, below.

(b)  AdjustedIn this context, the Marketing & Services segment’s ROACE for special items. See Note 3the full-year 2019 was 22.3% compared to 25% for the Consolidated Financial Statements in the 2018 Registration Document (starting on page 265), which is incorporated herein by reference.

(c)  Including acquisitions and increases in non-current loans. For additional information on investments, refer to point 2.5 of chapter 2 of the 2018 Registration Document (starting on page 68), which is incorporated herein by reference.

(d)  Including divestments and reimbursements of non-current loans.

(e)  "Organic investments" = net investments, excluding acquisitions, divestments and other operations with non-controlling interests. For additional information on investments, refer to point 2.5 of chapter 2 of the 2018 Registration Document (starting on page 68), which is incorporated herein by reference.full-year 2018.

2018 vs. 2017

In 2018, petroleum product sales increased by 1% compared to 2017. The sale of TotalErg in Italy was offset by higher sales in the rest of the world.

Non-Group sales for the Marketing & Services segment in 2018 were $90,206 million compared to $74,634 million in 2017, an increase of 21%.

The segment’s adjusted net operating income was stable in 2018 at $1,652 million, a decrease of 1% compared to $1,676 million in 2017.

Adjusted net operating income for the Marketing & Services segment excludes anyafter-tax inventory valuation effect and special items. The exclusion of the inventory valuation effect had a positive impact on the segment’s adjusted net operating income in 2018 of $5 million compared to a positive impact of $3 million in 2017. The exclusion of special items had a positive impact on the segment’s adjusted net operating income in 2018 of $31 million compared to a negative impact of $82 million in 2017.

TheIn 2018, the Marketing & Services segment’s cash flow from operating activities excluding financial charges for the full-year 2018 was $2,759 million, an increase of 24% compared to $2,221 million in 2017. Operating cash flow for the full-year 2017. In 2018, operating cash flow excluding the change in working capital at replacement cost and without financial charges was $2,156 million compared to $2,242 million infor the full-year 2017, a decrease of 4%.

For information on the Marketing & Services segment’s investments, refer to point 2.52.6 (“Investments”) of chapter 2 of the 2018Universal Registration Document 2019 (starting onpage 6874), which is incorporated herein by reference. See also "- “- 5.4 Liquidity and Capital Resources"Resources”, below.

In this context, the Marketing & Services segment’s ROACE for the full-year 2018 was 25% compared to 26% for the full yearfull-year 2017.