Human Capital Management Report

H U M A N C A P I TA L M A N AG E M E N T

2020 REPORT

Phillips 66 at a glance With a unique portfolio of assets in the Midstream, Chemicals, Refining, and Marketing and Specialties businesses, we process, transport, store and market fuels and products globally. Our work contributes to meeting the world’s growing energy needs. Affordable, reliable and abundant energy is essential to sustaining human health and well-being and improving the global standard of living.

Midstream

Chemicals*

Refining

Marketing and Specialties

22,000

28

2.2

7,590

miles of U.S. pipeline systems

global manufacturing facilities

2

million barrels per day (BPD) of crude throughput capacity**

research and development centers in the U.S.

branded U.S. outlets

1,700

branded international outlets

Our strategy has a proven track record of delivering long-term value.

Operating Excellence Committed to safety, environmental stewardship, reliability and cost efficiency while protecting shareholder value

High-Performing Organization Building capability, pursuing excellence and doing the right thing

Growth Enhancing our portfolio by capturing growth opportunities in Midstream and Chemicals, as well as low-carbon opportunities in Emerging Energy

Returns Improving returns by maximizing earnings from existing assets and investing capital efficiently

Distributions Committed to financial strength, disciplined capital allocation, dividend growth and share repurchases

As of Jan. 1, 2021 *50% joint venture interest in Chevron Phillips Chemical Company (CPChem) LLC **Includes our share of equity affiliates

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PHILLIPS 66

2020 HUMAN CAPITAL MANAGEMENT REPORT

Letter from our Chairman and CEO

4

Our approach to human capital management

6

Our Culture 8 Building on what makes us great

Pandemic Response and Social Unrest 16 Creating unity amid a global pandemic, natural disasters and social unrest

Employee Experience 22 Fostering a sense of belonging for the long term

Employee Well-Being 30 Enabling our workforce to thrive

Celebrating Success 38 Recognizing and rewarding our high-performing organization

Labor Relations and Policies 44 Doing the right thing, always Appendix

48

Our 14,300 employees are excited about the future of energy.

Headquarters HOUSTON, TX

CONTENTS

3

Energy to thrive A letter from our Chairman and CEO To our employees, communities and shareholders, I am proud to introduce our inaugural Human Capital Management Report. At no time in our history have we faced an Greg onslaught of challenges like the ones our nation, our industry and our company faced in 2020: a pandemic, social unrest, political discord, unprecedented volatility in the market and a series of natural disasters. It’s equally true that we saw the best in our 14,300 employees. The year revealed in our people a remarkable ability to innovate, solve problems creatively, work together and achieve excellence.

Garland

Despite the challenges of 2020, our teams persevered, and it shows in our accomplishments. Here are a few highlights: •

Record safety and environmental performance

•

Successful startup of the Gray Oak Pipeline, the largest pipeline project in company history

•

Plans to build one of the world’s largest renewable fuels plant at our Rodeo Refinery in San Francisco

•

Digital transformation of our refinery operations using innovative technologies

We deliver exceptional performance because we are a high-performing organization. Our people are among the brightest in the industry. We value their unique perspectives and know we achieve better results when we embrace diversity. Creating an environment where all employees can thrive helps our company play a pivotal role as we work to solve one of the most important issues of our time: how to meet the world’s growing energy needs while achieving a lower-carbon future.

The products we make provide the fuel, power and consumer goods that make our everyday lives safer, healthier and more comfortable. We are providing energy and improving lives. We will do this well into the future as we embrace and develop new technologies to allow for cleaner and smarter energy production.

We are proud of what we have accomplished so far, and we know that we are not done.

We are committed to getting better every day and that our people share in our success.

In safety, honor and commitment,

Greg Garland Chairman and CEO

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PHILLIPS 66 2020 HUMAN CAPITAL MANAGEMENT REPORT

A CONVERSATION WITH SONYA REED Senior Vice President, Human Resources and Corporate Communications

Sonya Reed

This is the company’s inaugural Human Capital Management Report. What do you hope stakeholders learn about Phillips 66?

We’re excited to showcase the great work happening across our company and our people’s commitment to shaping a culture that will position us to help lead the energy future. We have 14,300 employees who genuinely believe in the value, importance and impact of our products globally. With our strong foundation and our eyes on the future, Phillips 66 will continue to be a great place to build a career for a long time to come.

How has 2020 adjusted the company’s priorities?

A year like we just experienced tests our ability to operate as a high-performing organization, but it also reinforces who we are. We are an organization motivated by our vision of providing energy and improving lives — a vision that extends beyond the products and services we deliver to the people and communities where we live and operate. The year 2020 didn’t adjust our priorities: It reinforced and accelerated them. We are more committed to our employees’ health and safety and sense of belonging than ever before.

Where does Phillips 66 have the biggest opportunities to grow in relation to its human capital management priorities?

We are setting the tone at the top for what it means to truly seek out different perspectives and to understand, listen and adjust. Living these words in our behaviors every single day takes practice, and it will become ingrained in our DNA, much like safety. That’s what I’m most excited about.

What is the ultimate goal of the company’s human capital management strategy?

To connect our people to purpose and to one another in order to create, innovate and thrive. We have challenges ahead of us and complex problems to address, but we have clarity of vision, a commitment to our values, an inclusive culture, and well-defined goals and expectations of behaviors at every level, all of which will ensure that we achieve exceptional results.

FROM OUR LEADERS

5

Our approach to human capital management The board of directors actively engages with our executive leadership on human capital management strategies and often challenges us to explore new opportunities and approaches.

Human capital encompasses a range of topics, which are covered by specific board committees.

•

The Public Policy and Sustainability Committee reviews policies, programs and practices regarding health, safety and environmental protection and advises on social impact, corporate responsibility and sustainability matters

•

The Human Resources and Compensation Committee oversees initiatives and strategies in the areas of inclusion and diversity, management succession planning, talent management, and human capital and directs our executive compensation programs

•

The Nominating and Governance Committee selects and recommends director candidates to the board with a focus on ensuring a robust set of diverse skills, experiences and backgrounds

•

The Audit and Finance Committee oversees the integrity of the company’s accounting policies, internal controls, financial statements and financial reporting practices. It reviews significant risk exposures and management’s monitoring, control and reporting of such exposures and monitors compliance with legal and regulatory requirements, including our Code of Business Ethics and Conduct

The full charters for each committee can be found in the Investors section of Phillips66.com.

Senior leaders regularly collaborate with each committee to keep directors informed, measure progress against goals, identify potential risks and develop meaningful solutions. Board members also periodically visit our sites and meet with employees to stay connected to our corporate culture. The board’s engagement across the breadth of human capital management topics demonstrates the value Phillips 66 places on our people.

Board of Directors

45% 91%

women independent

Left to Right: John Lowe, Gary Adams, Charles Holley, Victoria Tschinkel, Marna Whittington, Greg Garland, Glenn Tilton, Lisa Davis, Julie Bushman, Denise Ramos, Harold McGraw

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PHILLIPS 66 2020 HUMAN CAPITAL MANAGEMENT REPORT

KEY PRINCIPLES •

Our people are bonded by our vision of providing energy and improving lives and our core values of safety, honor and commitment. These principles guide who we are and what we stand for

•

Our company strategy centers in part on our high-performing organization, which recognizes that our people are key to our success. It is defined by our culture, capability and performance

•

We value our people. They are our greatest resource. We are committed to creating an inclusive environment that attracts and retains exceptional and diverse talent. We support professional development and career growth from the moment an employee joins Phillips 66 to when they retire

•

Our Energy in Action sets behavioral expectations for everyone that preserve what makes Phillips 66 great and challenges us to evolve in ways that make us better. It is how we treat each other, our customers and our communities, and its impact can be experienced throughout our organization

•

Our commitment to safety and operating excellence makes us an industry leader in safety performance

•

We support our employees when they need us

•

We integrate evaluations, incentives and benefits into our performance-based Total Rewards strategy

A collaboration space at headquarters HOUSTON, TX

We are proud to provide information about our human capital management practices, and we look forward to sharing progress in years to come.

OUR APPROACH

7

OUR CULTURE

PANDEMIC RESPONSE AND SOCIAL UNREST

EMPLOYEE EXPERIENCE

EMPLOYEE WELL-BEING

CELEBRATING SUCCESS

Our Culture

Oklahoma City Terminal storage OKLAHOMA CITY, OK

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PHILLIPS 66 2020 HUMAN CAPITAL MANAGEMENT REPORT

LABOR RELATIONS AND POLICIES

Building on what makes us great

OUR CULTURE

9

OUR CULTURE

PANDEMIC RESPONSE AND SOCIAL UNREST

EMPLOYEE EXPERIENCE

EMPLOYEE WELL-BEING

CELEBRATING SUCCESS

LABOR RELATIONS AND POLICIES

Safety is at the forefront of everything we do It is our goal to send everyone home safely, every day. Operating excellence — including personal and process safety, environmental stewardship, and asset reliability — is critical to meeting our corporate strategy of growth, returns and distributions. Our view is that safety is not defined by the absence of failure but by the presence of positive controls and a willingness to learn.

In 2020, we achieved record safety and environmental performance.

Phillips 66 has been a company for almost nine years, and our rich 140-year heritage has helped shape who we are, what we believe and who we strive to be.

Our culture is a proven differentiator. Our core values of safety, honor and commitment define who we are and what we stand for.

Phillips 66 has an unrelenting commitment to the safety of our people and our communities. We are proud to be one of the energy industry’s safest and most reliable companies.

In 2020, we achieved record safety and environmental performance. Our Total Recordable Rate (TRR) of 0.11 was 30 times lower than the overall U.S. manufacturing average and lower than the 2019 refining industry and other industries.

Ferndale Refinery Incident Management Assistance Team (IMAT) Drill FERNDALE, WA

TOTAL RECORDABLE RATE (TRR) BY INDUSTRY TRR industry average (All industries including private, state and local government)

5

4

3

2

1 0.11 0

Retail Food manufacturing trade

Construction

Motion picture, video industries

Sources: Bureau of Labor Statistics, 2019 data; Phillips 66, 2020 data

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PHILLIPS 66 2020 HUMAN CAPITAL MANAGEMENT REPORT

Electric power generation, transmission, distribution

Petroleum refineries

Phillips 66

STOP-WORK AUTHORITY All employees and contractors have the responsibility and authority to stop work any time there is an unsafe condition, practice or hazard involving themselves, the people around them or the environment. We train our whole workforce to “stop when unsure.” No employee or contractor will ever receive negative consequences for using their stop-work authority in good faith, even if it turns out that there is no hazard.

Every person walking through our gates has the right to stop unsafe work, and if the job can’t be done safely, then we just shouldn’t do it.”

GREG GARLAND Chairman and CEO

HEALTH, SAFETY & ENVIRONMENT MANAGEMENT SYSTEM (HSEMS) HSEMS grounds our continuous evaluation of our operations to maintain and improve safety and reliability. Our health, safety and environment commitment is reflected in our investment in asset maintenance/integrity and safety training.

Process safety meeting WESTLAKE, LA

LIFE SAVING RULES In conjunction with the HSEMS, our 10 Life Saving Rules (LSR) Program is fundamental to our safety culture. All employees are trained on LSR, which are clear, concise and apply to all routine and critical activities.

•

Protect against falls and dropped objects

•

Verify line-up and containment

•

Control hazardous energy

•

Follow safe rigging and lifting practices

•

Operate vehicles and industrial equipment responsibly

•

Perform excavations safely

•

Assess and mitigate hazards before working

•

Properly plan and execute hot work

•

Work in confined spaces safely

•

Maintain safety system protection

OUR CULTURE

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OUR CULTURE

PANDEMIC RESPONSE AND SOCIAL UNREST

EMPLOYEE EXPERIENCE

EMPLOYEE WELL-BEING

CELEBRATING SUCCESS

LABOR RELATIONS AND POLICIES

Preserving the best of who we are while shaping an organization for the future Our workforce is evolving, and our business is transforming, which enables us to purposefully shape our culture to adapt to change and capture emerging opportunities.

OUR ENERGY IN ACTION Our Energy in Action (OEIA) is a common set of behavioral expectations for all employees that preserves what makes Phillips 66 great and challenges us to become better. OEIA is how we treat each other, our customers and our communities. It is grounded in the voices of our employees, which has enabled rapid buy-in throughout the organization.

Together with our values, the principles of OEIA govern our behaviors, influence how we make decisions and help us be intentional about seeking different perspectives. We model and measure against these principles by integrating them into our practices, including succession management and talent reviews, performance management, and recruiting.

Work for the greater good.

Create an environment of trust.

Seek different perspectives.

Achieve excellence.

We embrace our values as a common bond.

We depend on each other to do our jobs.

We create space for possibilities.

We challenge ourselves and never settle.

Be a good neighbor and use resources wisely.

Build relationships by understanding the experience of others.

Examine the risks and challenge the status quo.

Acknowledge and rebound from our mistakes.

Be open to new ways of thinking.

Embrace change and adapt quickly.

Speak up and share our unique expertise.

Be curious and pursue lifelong learning.

Listen and make sure everyone is heard.

Leave things better for the next person.

Prioritize the big picture interests of the company.

Work across teams, business units and functions.

Hold ourselves accountable for our words, work and actions.

rovide and welcome P real-time feedback.

Treat everyone as a contributing team member.

Resolve differences quickly and move forward.

Don’t let self-interest come first.

Don’t say one thing and do another.

Don’t simply accept the “way we have always done things.”

Don’t avoid difficult decisions.

Living our values earns us the confidence of our business partners, communities and co-workers.

Trusting each other makes us more productive and agile.

Championing inclusion enables us to innovate and thrive.

Continuing to improve ensures we deliver extraordinary performance.

79%

of employees believe the leadership teams within their business unit have shown a commitment to modeling Our Energy in Action.

Source: 2020 employee pulse survey

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PHILLIPS 66 2020 HUMAN CAPITAL MANAGEMENT REPORT

Building an inclusive culture and enhancing representation A diverse workforce, powered by an environment of inclusion, expands our ability to collaborate, innovate and differentiate performance. Inclusion and diversity are critical to driving a high-performing organization and living Our Energy in Action.

At Phillips 66, we lead with inclusion because in its absence, diversity cannot thrive. We promote environments free of biases where all employees feel valued, respected and supported.

Inclusion and Diversity is not a standalone initiative. It is embedded in the behaviors we expect from every employee, every day, always.”

NATACHA BUCHANAN Director, Inclusion & Diversity

We view diversity as the visible and less-visible differences that shape social identity and drive behaviors — from differences in gender, race, ethnicity, age, national origin and disability, to sexual orientation, education and religion. Seeking different perspectives, backgrounds, lifestyles and cultures propels the organization forward and enables us to reach our full potential.

We are taking a leader-led approach to make sustainable change in inclusion and diversity. We’re embedding it into our business processes and performance evaluations, much like we do for safety, and we hold our leaders accountable for results.

Our Executive Inclusion & Diversity Council sets and monitors the execution of our company’s inclusion and diversity strategy. The council is led by our Chairman and CEO Greg Garland and comprised of members of our Executive Leadership Team and leaders from business units and functions. Council members also serve as executive champions and global sponsors of our Employee Resource Groups (ERGs) to actively engage with and understand the experiences of our employees.

Los Angeles Refinery LOS ANGELES, CA

OUR CULTURE

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OUR CULTURE

PANDEMIC RESPONSE AND SOCIAL UNREST

EMPLOYEE EXPERIENCE

EMPLOYEE WELL-BEING

CELEBRATING SUCCESS

LABOR RELATIONS AND POLICIES

Driving business outcomes and supporting each other through our Employee Resource Groups Our Employee Resource Groups (ERGs) focus on engaging and developing our people, attracting top talent and building internal networks that serve the communities where we live and work.

They are forums for sharing different perspectives and raising awareness around identity and belonging. Each ERG is supported by local and global executive leadership.

9

ERGs

50+

Asian American Network Black Employee Network Hispanic Network Native American Network New Hire Network PRIDE66 U.K. Inclusion & Diversity Network Veterans Network Women’s Network

OUR PRIDE IN PRIDE66 We believe it’s important to be who you are and bring your whole self to work. Our ERG for LGBTQ+ employees and allies, PRIDE66, leads the way. What started as two networks in our corporate offices quickly has expanded to the field, including a virtual network during the pandemic.

PRIDE66 educates and provides resources to become better allies for the LGBTQ+ community through their Out & Equal LGBTQ+ Terminology and Ally Development series. Houston and Bartlesville PRIDE66 chapters have participated in their annual Pride parades.

In 2020, the company celebrated National Coming Out Day for the first time to recognize the importance of embracing people for who they truly are and to create more advocates for equality.

PRIDE66 at the 2019 Houston Pride Parade HOUSTON, TX

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chapters

PHILLIPS 66 2020 HUMAN CAPITAL MANAGEMENT REPORT

Workforce diversity enhances our high-performing organization Our efforts to build a more diverse and inclusive workforce shine through in our impressive 97% retention rate of underrepresented minority and female employees.

Our leaders focus on three levers to enhance representation across the organization: acquisition, retention and promotion. The data trends below demonstrate our commitment to progress.

Our commitment to progress

8%

improvement in women in professional roles, globally since 2013

23%

improvement in underrepresented minorities in the U.S. since 2013

U.S. (%)

GLOBAL (%)

American Indian/ Alaskan

Two or More Races

Native Hawaiian/ Other Pacific Islander

Total Underrepresented Minorities

Women

Hispanic

Black

Asian/ Pacific Islander

10.8

7.2

4.5

2.4

1.0

0.4

26.3

20.9

People Leaders

7.6

4.4

4.4

2.5

0.5

0.2

19.6

18.8

Non-People Leaders

11.5

7.8

4.5

2.4

1.1

0.4

27.7

21.3

Full Workforce

Data reflects Phillips 66 workforce excluding Sentinel Transportation, LLC as of Dec 31, 2020

Women’s Network event at the Sweeny Refinery OLD OCEAN, TX

OUR CULTURE

15

OUR CULTURE

PANDEMIC RESPONSE AND SOCIAL UNREST

EMPLOYEE EXPERIENCE

EMPLOYEE WELL-BEING

CELEBRATING SUCCESS

LABOR RELATIONS AND POLICIES

Pandemic Response and Social Unrest

Hurricane Laura response at Lake Charles Refinery WESTLAKE, LA

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PHILLIPS 66 2020 HUMAN CAPITAL MANAGEMENT REPORT

Creating unity amid a global pandemic, natural disasters and social unrest

PANDEMIC RESPONSE AND SOCIAL UNREST

17

OUR CULTURE

PANDEMIC RESPONSE AND SOCIAL UNREST

EMPLOYEE EXPERIENCE

EMPLOYEE WELL-BEING

CELEBRATING SUCCESS

LABOR RELATIONS AND POLICIES

Living our vision: Providing Energy. Improving Lives.

When a crisis strikes, an organization with a solid foundation and a strong culture can lean on its vision and values as a guiding compass. That is exactly what we did at Phillips 66 in 2020.

Amid a global pandemic, natural disasters and social unrest, Phillips 66 led efforts to support and protect our employees, their families and our communities. Continuing to operate as a critical infrastructure industry, we also provided fuel for frontline workers and emergency responders, and our chemicals business made the petrochemicals necessary for medical syringes, gloves, food packaging and other essential supplies.

OPERATING IN A GLOBAL PANDEMIC We did not have any company-wide reductions in workforce, furloughs or salary or benefit reductions.

Our field employees demonstrated our values of safety, honor and commitment by continuing to work across our network of pipelines, terminals, refineries and lubricants facilities. Our office-based employees pivoted quickly and adapted to new ways of working remotely. We accelerated the adoption of digital technology and smart, collaborative work. During this stressful time, the company also increased access to mental health resources by offering free telemedicine and behavioral health services throughout 2020.

We implemented enhanced measures to protect our workforce while providing essential services including:

18

•

“Layers of protection” approach aligned with the Centers for Disease Control and Prevention (CDC) and local government guidance

•

Accommodations made to protect our employees with high-risk health conditions (self or family) and pregnant employees

•

In-house medical services team, including a full-time physician and registered nurses to provide health guidance and lead contact tracing processes

•

Virus Prevention Hub intranet site to provide employees with up-to-date information on CDC guidance, health and safety protocols, pertinent data, and regular updates from leadership

•

Feedback loops from employees that helped us adjust safety protocols, policies and communications accordingly

•

Arrangements for most of our U.S. locations to be COVID-19 vaccine distribution points once the vaccine becomes available in 2021

PHILLIPS 66 2020 HUMAN CAPITAL MANAGEMENT REPORT

Temperature checks at headquarters entrance HOUSTON, TX

SUPPORTING OUR COMMUNITIES DURING A TIME OF NEED Phillips 66 donated more than $6 million to COVID-19 and natural disaster relief efforts, supporting local food banks, safe school reopening efforts, and healthcare and frontline workers.

Our 2020 company-sponsored United Way campaign was our largest employee giving campaign in company history. Phillips 66, our employees and our retirees donated $4.6 million to 11 United Way organizations across the United States.

$6 $4.6

million donated to COVID-19 and natural disaster relief million donated to United Way

2020 Bayway Refinery interns LINDEN, NJ

HONORING OUR COMMITMENT TO 2020 SUMMER INTERNS We are a company that stands behind our word, always. We chose to honor the commitments we made to 181 college students by following through with our Summer of 66 internship program in 2020.

We quickly pivoted to a hybrid virtual/in-person model.

Most of our 80 engineering interns in Refining and Midstream were able to participate in person, getting hands-on problem solving experience. In the virtual model, interns contributed to existing real-world projects, participated in virtual tours of our assets, and expanded their networking reach.

We rely on our internship program to feed our university hire pipeline. In 2020, we had our most diverse intern class ever, and 97% of our 2021 incoming university hires were recruited from the program.

Phillips 66’s commitment to continuing its intern program despite the pandemic demonstrates its understanding of how valuable the experience is for college students considering a career in energy.”

VICTORIA CARROLL Louisiana Tech University student and process engineering intern, Lake Charles Refinery PANDEMIC RESPONSE AND SOCIAL UNREST

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OUR CULTURE

PANDEMIC RESPONSE AND SOCIAL UNREST

EMPLOYEE EXPERIENCE

EMPLOYEE WELL-BEING

CELEBRATING SUCCESS

LABOR RELATIONS AND POLICIES

Accelerating our inclusion and diversity journey in response to social unrest Phillips 66 has been taking steps to address racial equality and advance an inclusive and diverse culture, but the events of 2020 highlighted the need to accelerate change.

In response, we developed tools and resources for leaders to host Candid Conversations on Race across the company. These personal and powerful conversations played a pivotal role in uniting our workforce, brought greater understanding to our inclusion and diversity journey, and engaged leadership to help ignite change.

We conducted CEO and leadership town halls to affirm our unwavering commitment to our values and make clear that racism, in any form, will not be tolerated at Phillips 66.

Fireside chat with Chairman and CEO Greg Garland hosted by the Black Employee Network HOUSTON, TX

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PHILLIPS 66 2020 HUMAN CAPITAL MANAGEMENT REPORT

Phillips 66 is a place where everyone is treated with respect and dignity and where we champion the betterment of all.”

GREG GARLAND Chairman and CEO

Responding to natural disasters Just two weeks after Hurricane Laura went through Louisiana, repairs were underway and much of the Lake Charles Refinery was without power. Still, employees raised the American flag on Sept. 11, 2020, in remembrance of 9/11.

Bob Herman, Executive Vice President, Refining, held a town hall in memory of the day and to acknowledge the recent hardships of the refinery’s workforce.

Hurricanes and wildfires caused destruction across many parts of the United States in 2020. Communities where we live and work were impacted.

Phillips 66 supported close to 800 employees affected by the natural disasters through $2.5 million in emergency cash and $3.7 million in hardship loans. We also donated more than $1 million to charitable relief efforts in Louisiana and California.

Our Lake Charles Manufacturing Complex (LCMC) in Louisiana persevered through two hurricanes just six weeks apart. Phillips 66 donated generators, air conditioning units, carbon monoxide detectors and other critical supplies to the impacted communities.

Lake Charles Refinery WESTLAKE, LA

PANDEMIC RESPONSE AND SOCIAL UNREST

21

OUR CULTURE

PANDEMIC RESPONSE AND SOCIAL UNREST

EMPLOYEE EXPERIENCE

EMPLOYEE WELL-BEING

CELEBRATING SUCCESS

Employee Experience

Commercial floor at headquarters HOUSTON, TX

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PHILLIPS 66 2020 HUMAN CAPITAL MANAGEMENT REPORT

LABOR RELATIONS AND POLICIES

Fostering a sense of belonging for the long term

EMPLOYEE EXPERIENCE

23

OUR CULTURE

PANDEMIC RESPONSE AND SOCIAL UNREST

EMPLOYEE EXPERIENCE

EMPLOYEE WELL-BEING

CELEBRATING SUCCESS

LABOR RELATIONS AND POLICIES

From recruitment to retirement and the moments in between We welcome people from all backgrounds and offer rewarding career paths in operations, maintenance, engineering, finance, research and other specialties. Our diverse and integrated value chain provides many crossfunctional career opportunities. You can work in an office or be hands-on in the field. You can be in leadership or lead peers informally. Each of us has a role to play, and we depend on each other to do our jobs well.

Our workforce at a glance

14,300 employees*

TYPES OF WORK

LOCATIONS

33% Operations

90% United States 72% Field 28% Houston, Texas, headquarters and Bartlesville, Oklahoma offices

20% Maintenance Crafts 7% Engineering

17%

people leaders

7% Finance

7% United Kingdom

5% Information Technology

2% Germany/Austria

4% HSE/Project Management

1% Canada/China/UAE/Singapore

4% Marketing and Sales

37%

3% Commercial

represented by a labor union

2% Research and Development 15% Other

AGE 4% 20-24 Gen Z 25-29 41% Millennial 30-34 35-39 39% Gen X

40-44 45-49 50-54

16% 55-59 Boomer 60+ 0%

10%

20%

*Including ~700 Sentinel Transportation, LLC employees

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PHILLIPS 66 2020 HUMAN CAPITAL MANAGEMENT REPORT

Recruiting top talent and developing a diverse workforce to deliver global energy solutions Our recruiting processes are designed to be strategic, sustainable and measurable. We use tactics that enable us to connect and develop meaningful relationships with prospective hires. Our digital recruiting capabilities enhance our ability to reach an expanded network of top experienced and university candidates. To ensure diverse candidate pools for open positions, we are expanding the use of blind resumes, consistent interview experiences via digital platforms, interview guides and gender-neutral job descriptions.

NEW HIRES 46% Operations/ Maintenance Crafts

We have a dedicated University Recruiting team that cultivates on-campus relationships with administrators, faculty and students. We’re also expanding our network and relationships with technical schools to strengthen our future pipeline of critical craft talent. In addition, our recruiting efforts span the STEM organizations we support, such as the Society of Women Engineers, National Society of Black Engineers and the National Action Council for Minorities in Engineering.

Phillips 66 sponsors and participates in Hiring Our Heroes Corporate Fellowship Program, an innovative 12-week program that provides transitioning service members with professional training and hands-on experience in the civilian workforce.

36% Experienced Professional

18% University

Fuel cell laboratory at the Phillips 66 Research Center BARTLESVILLE, OK

DEVELOPING FUTURE TALENT THROUGH CORPORATE GIVING AND PARTNERSHIPS Developing the great minds that will shape the future of energy starts at the university level. We have several core engineering universities we recruit from and give back to, like the Georgia Institute of Technology. Phillips 66 supports the university with annual corporate giving, including funding to enhance campus inclusion and diversity efforts.

This year, Phillips 66 is collaborating with Georgia Tech to develop renewable energy technology through a $3 million grant from the U.S. Department of Energy.

The grant will help advance the development and commercial feasibility of high-performance reversible solid oxide fuel cells, which are a lower-carbon option for electricity and hydrogen generation.

This technology is one of many Phillips 66 is pursuing as part of its commitment to a sustainable, lowercarbon energy future.

EMPLOYEE EXPERIENCE

25

OUR CULTURE

PANDEMIC RESPONSE AND SOCIAL UNREST

EMPLOYEE EXPERIENCE

EMPLOYEE WELL-BEING

CELEBRATING SUCCESS

LABOR RELATIONS AND POLICIES

Industry-leading internship program is a pipeline for diversity Investment in our internship program sets us apart and is an essential part of building a successful organization.

We provide paid internships at every major global location, offering students meaningful, hands-on opportunities to learn and play a role in our success. Our employees also give their time and talent to mentor college students seeking career advice.

2020 was our most diverse recruiting year ever.

42%

women among intern class

47%

women among university new hires

Data reflects Phillips 66 U.S. workforce

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PHILLIPS 66 2020 HUMAN CAPITAL MANAGEMENT REPORT

37%

underrepresented minorities among intern class

31%

underrepresented minorities among new hires

Proactively developing our people Our culture fosters an environment where everyone can grow, contribute and raise the bar on their performance year after year. We provide career development opportunities at all levels.

•

Comprehensive onboarding program for new hires, with core curriculum

•

Skill and business-unit specific training programs, including programs for commercial-facing new hires and early-career engineers

•

Classroom and on-demand learning opportunities

•

Intentional rotational assignments

•

Robust people leader coaching and a virtual People Leader Hub platform for connecting, sharing and learning from others

We believe that talent development is a collaboration between our people leaders and employees.

Talent Management Teams (TMTs) consist of people leaders within our businesses who are responsible for identifying and developing talent.

•

TMTs select employees to move into rotational roles and take on special assignments

•

Cross-section of people leaders discuss talent and opportunities to ensure equity and fairness of promotions and opportunities

It’s about creating customized employee development plans that recognize who they are and what they need to reach their full potential.”

BRENDA BRINSON General Manager, Talent Management

SUCCESSION PLANS FOR ALL KEY ROLES For senior executive roles, the board of directors has oversight of our succession plans as we prepare for long-term business sustainability. The board cultivates connections with our executive leaders to build relationships and gain knowledge of potential successors.

Our thoughtful approach to succession planning enables people leaders to help employees gain the necessary skills and experience, so they’re ready when new opportunities emerge.

100%

succession bench utilization for all senior leader retirements

Humber Refinery Training Facility SOUTH KILLINGHOLME, U.K.

EMPLOYEE EXPERIENCE

27

OUR CULTURE

PANDEMIC RESPONSE AND SOCIAL UNREST

EMPLOYEE EXPERIENCE

EMPLOYEE WELL-BEING

CELEBRATING SUCCESS

LABOR RELATIONS AND POLICIES

Equipping, engaging and empowering our people We work hard to ensure people feel valued, heard and respected.

We recognize the importance of equipping our employees with the right tools, engaging them in innovative ways of working, and empowering them to deliver our vision.

To thrive, it is critical for employees to develop and see progress in their careers. We work hard to ensure people feel valued, heard and respected. We cultivate an environment of ongoing feedback to listen and adjust to the needs of our workforce.

The engagement and culture survey (VIEWPOINT) is companywide and performed every two years. It is an employee listening tool that allows us to gather feedback, communicate results and take action for meaningful change. We also do periodic employee pulse polls as needed.

We believe in continuous coaching conversations as an important one-on-one connection point between each employee and their people leader. The intent is to have greater transparency in feedback, clarity on strengths, growth opportunities and alignment on progress. It’s one of the ways we’re operationalizing inclusion and equity.

Our internal communication tools, including digital and mobile apps, engage employees with company strategy, provide leadership visibility and allow for recognition opportunities. We also host town halls, and leaders often visit our field locations to stay connected with employees.

Headquarters HOUSTON, TX

2020 employee experience by the numbers

15%

of workforce was promoted 17% women 16% underrepresented minorities

28

2%

annual voluntary resignation rate

98%

retention of high performers

PHILLIPS 66 2020 HUMAN CAPITAL MANAGEMENT REPORT

54

hours per year, per employee invested in training

44%

of internal transfers are development moves

Glacier Pipeline (Subterranean) CUT BANK, MT

EMPLOYEE EXPERIENCE

29

OUR CULTURE

PANDEMIC RESPONSE AND SOCIAL UNREST

EMPLOYEE EXPERIENCE

EMPLOYEE WELL-BEING

CELEBRATING SUCCESS

Employee Well-Being

Headquarters sport court HOUSTON, TX

30

PHILLIPS 66 2020 HUMAN CAPITAL MANAGEMENT REPORT

LABOR RELATIONS AND POLICIES

Enabling our workforce to thrive

EMPLOYEE WELL-BEING

31

OUR CULTURE

PANDEMIC RESPONSE AND SOCIAL UNREST

EMPLOYEE EXPERIENCE

EMPLOYEE WELL-BEING

CELEBRATING SUCCESS

LABOR RELATIONS AND POLICIES

Supporting the well-being of our employees and their families Our benefits options care for our employees’ physical, emotional, financial and social well-being and that of their families, including domestic partners.

PHYSICAL WELL-BEING In addition to competitive and comprehensive medical, dental and vision plans, we offer a range of health and fitness resources.

•

Second opinion and treatment decision support

•

Health coaching

•

Free on-site biometric screenings

•

On-site fitness and wellness centers at more than 10 U.S. sites including our Houston, Texas, headquarters and Bartlesville, Oklahoma offices

•

Well-Being Incentive Program provides the opportunity to earn up to $650 in payroll credits for completing various wellness activities

•

Fitness reimbursement of up to $500

•

94% $4

of U.S. employees enrolled in our best-in-class medical plans million paid out under the Well-Being Incentive and Fitness Reimbursement programs

Our Total Rewards offering is designed for our diverse and evolving workforce. Our benefits support a culture where our employees can be their best.”

ALEX SHABET General Manager, Total Rewards

Well-being ambassador at each U.S. refinery and terminal location

ATTENTION TO PHYSICAL WELLNESS SPANS OUR GLOBAL NETWORK •

Our 1,200+ employees in Europe enjoy numerous wellness benefits and a team approach to physical fitness

•

Our Germany offices sponsor multiple team competitions, including bowling and golf tournaments, teams for marathons and triathlons, and rowing and sailing clubs

•

Our Humber Refinery in the U.K. has an on-site medical clinic and physiotherapy through private medical insurance. Several sports clubs are available for employees, including walking, cycling, golf and workout groups

Headquarters Wellness Center HOUSTON, TX

32

PHILLIPS 66 2020 HUMAN CAPITAL MANAGEMENT REPORT

EMOTIONAL WELL-BEING We support our employees and their families as they navigate everyday challenges and life’s most special and extraordinary events.* Providing critical mental health resources: •

•

The Employee Assistance Plan helps employees and their dependents manage stress, address mental health issues, and cope with personal or family challenges. It includes five free counseling sessions per issue, per year The Behavioral Health and Substance Abuse benefit is available to all employees and eligible dependents who are enrolled in a Phillips 66 healthcare plan.

It covers psychiatric care, inpatient treatment and longer-term outpatient counseling

Supporting parents and assisting with family care: •

Up to 12 weeks of paid leave for birth mothers**

•

Up to two weeks of paid leave for mothers and fathers after the birth or adoption of a child

•

Fertility benefits of up to $20,000 for medical coverage and $10,000 for prescription drug coverage

•

Up to $3,000 to help with adoption expenses

•

Mothers-at-work accommodations, including nursing rooms

•

Back-Up Family Care provides short-term in-home and center-based care for children and adults

•

Caregiver Assistance Program for families with dependents with learning, social and behavioral challenges

Enabling employees to be their true authentic selves: Gender transition support is offered through medical, pharmacy, and counseling benefits and connection to community resources. We also facilitate discussions between the employee, their colleagues and their people leader to ensure a supportive work environment.

Phillips 66 Corporate Sponsorship, Barbara Bush Library Family Place SPRING, TX

Spectrum Lubricants Plant SELMER, TN *United States only, subject to collective bargaining agreements **10 weeks of short-term disability plus two weeks of parental leave

EMPLOYEE WELL-BEING

33

OUR CULTURE

PANDEMIC RESPONSE AND SOCIAL UNREST

EMPLOYEE EXPERIENCE

EMPLOYEE WELL-BEING

CELEBRATING SUCCESS

LABOR RELATIONS AND POLICIES

FINANCIAL WELL-BEING We support financial well-being and help our employees realize their short- and long-term financial goals.

•

Most employees have access to a company- or state-provided pension plan. All U.S. employees participate in a company-provided pension plan once they have achieved one year of service

•

In addition to a pension plan, Phillips 66 provides employees with a savings plan.* The companysponsored 401(k) savings plan matches employee contributions dollar for dollar up to 6% of eligible pay. The company also contributes a discretionary Success Share contribution up to 6% of pay once a year. In the United Kingdom, our employees participate in our Share Incentive Plan, supporting wealth accumulation

$107 $350

million in U.S. savings plan matches in 2020 thousand average 401(k) balance

We also provide access to other income security benefits such as accidental death and dismemberment insurance and 100% companypaid, basic life insurance, short-term disability insurance and basic long-term disability coverage*

•

For employees who are enrolled in a medical plan with a health savings account, the company contributes up to $1,000 annually depending on eligible dependents*

•

Financial coaching is also available through a thirdparty vendor to help employees and their families on the path to financial well-being*

$263 $8.3

Commercial floor at headquarters HOUSTON, TX

*United States only

34

•

PHILLIPS 66 2020 HUMAN CAPITAL MANAGEMENT REPORT

million provided to employees through the Success Share since 2015 million company contribution to employee Health Savings Accounts in 2020

Trees for Houston volunteer event HOUSTON, TX

Habitat for Humanity volunteer event hosted by New Hire Network HOUSTON, TX

SOCIAL WELL-BEING We enhance our employees’ ability to give back to their communities in meaningful and personal ways.

•

Our Matching Gift Program matches employee contributions to eligible 501(c)(3) charitable organizations dollar for dollar up to $15,000. Retirees and retired directors’ contributions are matched up to $7,500

•

Our Volunteer Grant Program provides a company contribution for each hour up to $4,000 annually that a Phillips 66 employee or spouse dedicates to an eligible nonprofit organization

•

Regular full- and part-time employees may take two paid days per year to volunteer*

•

Annually, our Dependent Scholarship Program provides up to 66 $16,000 in scholarship to dependents to help with the cost of higher education

*United States only, subject to collective bargaining agreements

Commitment to our communities since 2012

520

thousand employee volunteer hours

456

dependent scholarships awarded with a value of $5.9 million

$52

million donated to organizations through the Matching Gift and Volunteer Grant programs

EMPLOYEE WELL-BEING

35

OUR CULTURE

PANDEMIC RESPONSE AND SOCIAL UNREST

EMPLOYEE EXPERIENCE

EMPLOYEE WELL-BEING

CELEBRATING SUCCESS

LABOR RELATIONS AND POLICIES

Phillips 66 changed my life.

A letter from a Phillips 66 employee Two years ago, I hit a low. Personal stress had taken a toll on my health. Walking into work had become a chore because arthritis in my ankles and knees was so inflamed. My biometrics were pushing prediabetes, my blood pressure was high and my weight was at a peak.

During a management training one day, the facilitator used the phrase, “you can only control what you can control,” and that hit home. At that point, I decided to make a change.

In just two years, the tools and benefits provided by Phillips 66 enabled me to significantly lower my BMI and lose 140 pounds. I am stronger and more athletic than I have ever been.

Phillips 66 is a good company and a great place to work. The company has made a difference in my life through the services provided and the encouragement that people can change and grow. Thank you for that. My family, team and friends get to benefit from the improvements that you enabled in me.

With gratitude, A Phillips 66 Midstream employee

Wellness Center Facility BARTLESVILLE, OK

36

PHILLIPS 66 2020 HUMAN CAPITAL MANAGEMENT REPORT

EMPLOYEE WELL-BEING

37

OUR CULTURE

PANDEMIC RESPONSE AND SOCIAL UNREST

EMPLOYEE EXPERIENCE

EMPLOYEE WELL-BEING

CELEBRATING SUCCESS

Celebrating Success

Fuel cell laboratory at the Phillips 66 Research Center BARTLESVILLE, OK

38

PHILLIPS 66 2020 HUMAN CAPITAL MANAGEMENT REPORT

LABOR RELATIONS AND POLICIES

Recognizing and rewarding our high-performing organization

CELEBRATING SUCCESS

39

OUR CULTURE

PANDEMIC RESPONSE AND SOCIAL UNREST

EMPLOYEE EXPERIENCE

EMPLOYEE WELL-BEING

CELEBRATING SUCCESS

LABOR RELATIONS AND POLICIES

Continuously raising the bar on what it means to deliver exceptional results Our employees accomplish great things every day, and we’re committed to recognizing their achievements in support of a high-performing organization. Our Total Rewards programs have financial and nonfinancial rewards to recognize businesses, teams and individuals who drive the execution of our corporate strategy.

Phillips 66 believes in equal pay for equal work, and we have policies and practices that keep us aligned to that goal.

•

We pay our employees fairly based on the market rates for their roles, experience and performance

•

We regularly benchmark compensation against peer companies to keep our pay levels competitive. People leaders and functional Talent Management Teams (TMTs) apply consistent

$167,000

standards to evaluate employee performance and determine promotions and development opportunities that help everyone reach their full potential •

We have a pay-for-performance philosophy.

Our employees share in our success through rewards programs, like our annual Variable Cash Incentive Program (VCIP) and Restricted Stock Unit (RSU) Program

•

Our executives are compensated to ensure we drive a high-performing organization

•

Our median employee received more than $167,000 in total compensation and benefits in 2020, illustrating our commitment to pay competitively and reward performance

in total compensation and benefits for our median employee Sweeny Refinery OLD OCEAN, TX

40

PHILLIPS 66 2020 HUMAN CAPITAL MANAGEMENT REPORT

Recognizing exceptional performance We believe that pausing to celebrate success moves us forward to achieve more.

This happens via two key recognition programs.

GOLDEN SHIELD AWARDS The Golden Shield Awards is the company’s highest honor. This annual recognition program celebrates outstanding employee performance that delivers superior results for the company while demonstrating our values and the principles of Our Energy in Action.

Employees at every level are encouraged to submit nominations in categories built around our business strategies, value, innovation and exceptional individual contributions, using a peer-based nominations system.

A cross-functional group of leaders evaluates the peerto-peer nominations before the Executive Leadership Team selects the winners. The program culminates in an annual ceremony to publicly celebrate the winners’ achievements. Winners and nominees are also celebrated at a local level within their business unit.

2020 was a record year for the Golden Shield Award program, with the most nominations and awards in company history. Two special award categories were added in 2020 to recognize extraordinary efforts related to COVID-19/Hurricane Laura and Innovation.

430

nominations

18

winning teams

12

categories

In a year marked by challenges and change, our ability to persevere, remain humble and recognize each other’s efforts is admirable.”

GREG GARLAND Chairman and CEO

SPECIAL RECOGNITION AWARD (SRA) We also use SRAs to acknowledge individual or team achievements and contributions that bring value to the company. An SRA can come in the form of cash or noncash awards and reinforces the behaviors and outcomes that set the standard for our future performance.

Team meeting at headquarters HOUSTON, TX

CELEBRATING SUCCESS

41

OUR CULTURE

PANDEMIC RESPONSE AND SOCIAL UNREST

EMPLOYEE EXPERIENCE

EMPLOYEE WELL-BEING

CELEBRATING SUCCESS

LABOR RELATIONS AND POLICIES

We’re proud to be recognized as a great place to work.

Phillips 66 awards recognition

Forbes America’s Best Employers for Diversity 2020

Military Times Recognized as a Best for Vets Employers

Human Rights Campaign Foundation Recognized as a Best Place to Work for LGBTQ Equality

American Fuel & Petrochemical Manufacturers 5 Distinguished Safety Awards: Bayway Refinery | Ferndale Refinery | Lake Charles Refinery| Santa Maria Refinery | Borger Refinery The first time in American Fuel & Petrochemical Manufacturers history for a single company to win this many awards.

Corporate Equality Index Earned a perfect SCORE on 2021 Corporate Equality Index for satisfying criteria in: Nondiscrimination policies across business entities Equitable benefits for LGBTQ workers and their families Supporting an inclusive culture Corporate social responsibility four central pillars

42

PHILLIPS 66 2020 HUMAN CAPITAL MANAGEMENT REPORT

Bayway Refinery LINDEN, NJ

CELEBRATING SUCCESS

43

OUR CULTURE

PANDEMIC RESPONSE AND SOCIAL UNREST

EMPLOYEE EXPERIENCE

EMPLOYEE WELL-BEING

CELEBRATING SUCCESS

LABOR RELATIONS AND POLICIES

Labor Relations and Policies

Excel Paralubes, Lake Charles Refinery WESTLAKE, LA

44

PHILLIPS 66 2020 HUMAN CAPITAL MANAGEMENT REPORT

Doing the right thing, always

LABOR RELATIONS AND POLICIES

45

OUR CULTURE

PANDEMIC RESPONSE AND SOCIAL UNREST

EMPLOYEE EXPERIENCE

EMPLOYEE WELL-BEING

CELEBRATING SUCCESS

LABOR RELATIONS AND POLICIES

Collaborative relationships drive us forward It’s our goal to create and maintain collaborative relationships with unions and works councils in support of achieving a high-performing organization and operating excellence. Safety is a priority that unites all employees, represented and non-represented, and that’s why our efforts to enhance our safety culture are inclusive of everyone.

We respect the rights of our U.S.-represented employees to bargain collectively under the National Labor Relations Act, as well as other country-specific laws and requirements for international locations. We are committed to bargaining in good faith and to negotiating agreements that provide attractive and competitive levels of compensation, benefits and working conditions for our represented employees and are fair, equitable and enable each business unit to compete in an increasingly challenging global market.

37% ~200 49

of U.S. workforce or 4,700 union-represented employees work in Refining, Midstream and Lubricants employees are represented by works councils in Austria, United Kingdom and Germany total managed collective bargaining agreements

We execute our work honorably, guided by key principles and policies

It is our responsibility to uphold our code — to set a high standard for ourselves and be seen by our peers, customers, business partners, investors and communities as a company that does the right thing, always.”

Part of being a great place to work means respecting everyone. Our employees experience this through our culture, and it’s guided by our Code of Business Ethics and Conduct.

GREG GARLAND Chairman and CEO

All employees, including people leaders, participate in annual training, during which they must attest that they will comply with the code. Phillips 66 senior financial officers adhere to both this and a Supplemental Code of Ethics.

Other key policies also address how we conduct our business with respect for all people and the environment, our accountability and responsibility to communities, and our commitments to ethical and trustworthy relationships.

Human Rights Position Health, Safety and Environment Policies Business Partner Principles of Conduct Inclusion & Diversity Position Gray Oak Pipeline Wink Facility WINK, TX

46

PHILLIPS 66 2020 HUMAN CAPITAL MANAGEMENT REPORT

HUMAN RIGHTS POSITION

Recognizing and respecting the dignity of all human beings Our position is informed by the Universal Declaration of Human Rights. We believe business has a role in promoting respect for human rights throughout the world. We conduct our operations within our sphere of influence and business role, according to our company values, ethics and policies. Specifically, we will not hold any person in slavery or servitude or use forced or indentured labor nor engage in human trafficking, and we shall seek to ensure that our supply chains are free of such practices.

national origin, race, religion, gender/sex conditions (including pregnancy, childbirth, breastfeeding or related medical status), sexual orientation, or any other legally protected status.

BUSINESS PARTNER AND SUPPLIER ETHICS

Choosing business partners objectively and fairly and dealing honestly with them Our business partners are expected to work with Phillips 66 employees in a way that upholds our standards. Business partners and suppliers who enter into contracts with Phillips 66 are expected to comply with contractual obligations and expectations in our Business Partner Principles of Conduct.

WHISTLEBLOWER POLICY

Empowering everyone to act with honor Employees, suppliers and customers are empowered to raise questions or concerns about our operations and business practices without fear of punishment. They are asked and expected to report behaviors that they believe violate the company Code of Business Ethics and Conduct. Various federal and state laws provide legal protection to certain types of whistleblowers. Additionally, Phillips 66 has a policy of non-retaliation, which helps foster an ethical workplace and a culture of integrity.

TOLL-FREE GRIEVANCE OR ETHICS HELP LINE 855-318-5390

ANTI-HARASSMENT POLICY

Maintaining a comfortable work environment The company is committed to maintaining a work environment that is free of all forms of unlawful conduct and harassment. This includes a prohibition of any actions by employees, supervisors or management who abuse an individual’s dignity as well as other objectionable conduct, including harassing or discriminating actions that interfere with another employee’s performance. Such conduct is unacceptable and will not be tolerated.

NONDISCRIMINATION POLICY

Committing to fair and nondiscriminatory treatment for all employees The company’s policy is to provide equal employment opportunity for all qualified people without regard to ancestry, age, physical or mental disability, genetic information, gender identity, gender expression, marital status, medical condition, military or veteran status,

Wood River Refinery ROXANA, IL

LABOR RELATIONS AND POLICIES

47

Appendix U.S. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION STATISTICS (%)

TOTAL EMPLOYEES

2017

2018

2019

2020

22

21

21

21

21

Hispanic or Latino

9

10

10

11

11

Black or African American

7

7

7

7

7

Asian

4

4

4

4

4 2

Women

American Indian or Alaskan Native

3

3

3

2

Two or More Races

0.3

1

1

1

1

Native Hawaiian or Pacific Islander

0.2

0.2

0.3

0.4

0.3

Total Representation

24

24

26

26

26

White

76

76

74

74

74

2016

2017

2018

2019

2020

20

22

21

19

24

Hispanic or Latino

3

3

7

7

8

Black or African American

2

2

3

3

3

Asian

3

5

5

7

5

American Indian or Alaskan Native

5

6

5

5

5

Two or More Races

0

0

0

0

0

EXECUTIVE/SENIOR OFFICIALS AND MANAGERS Women

Native Hawaiian or Pacific Islander

0

0

0

0

0

Total Representation

13

15

21

21

21

White

88

85

79

79

79

2016

2017

2018

2019

2020

19

19

18

19

19

Hispanic or Latino

7

7

7

8

8

Black or African American

5

5

4

5

4

Asian

4

4

4

4

4

American Indian or Alaskan Native

2

2

2

2

2

Two or More Races

0.4

0.5

0.3

0.4

0.5

Native Hawaiian or Pacific Islander

FIRST/MID-LEVEL OFFICIALS AND MANAGERS Women

0.1

0.1

0.3

0.3

0.3

Total Representation

17

18

18

19

19

White

83

82

82

81

81

2016

2017

2018

2019

2020 32

PROFESSIONALS

32

32

33

33

Hispanic or Latino

7

8

8

8

8

Black or African American

6

5

6

6

6

Asian

8

8

8

8

9

American Indian or Alaskan Native

3

3

3

3

2

Two or More Races

0.3

1

1

1

1

Native Hawaiian or Pacific Islander

0.2

0.2

0.2

0.2

0.2

Total Representation

24

25

26

26

26

White

76

75

74

74

74

Women

48

2016

PHILLIPS 66 2020 HUMAN CAPITAL MANAGEMENT REPORT

OPERATING EXCELLENCE

PERSONAL SAFETY

2016

2017

2018

2019

2020

Total Recordable Rate (TRR)1 (incidents per 200,000 work-hours)

0.15

0.14

0.14

0.15

0.11

0.33

0.32

0.30

0.33

0.04

0.04

0.05

0.03

0.08

0.08

0.08

0.08

0

1

1

0

0

Fatality rate4 (fatalities per 100,000 full-time workers)

0.00

3.00

3.03

0.00

0.00

PROCESS SAFETY

2016

2017

2018

2019

2020

0.02

0.03

0.05

0.06

0.02

0.06

0.08

0.06

0.06

0.13

0.13

0.13

0.14

0.17

0.19

0.17

0.16

AFPM Benchmark2 Lost Workday Case Rate3 (incidents per 200,000 work-hours) AFPM Benchmark2 Fatalities4 (#)

Tier 1 Process Safety Event rate

5

AFPM Benchmark2 Tier 2 Process Safety Event rate

5

AFPM Benchmark2

0.02

0.12

1 TRR as defined by the Occupational Safety and Health Administration (OSHA). Includes employees and contractors.

2 AFPM refers to American Fuel & Petrochemical Manufacturers, U.S. refining benchmark. Some 2020 benchmarking data not available at time of publication.

3 Also known as Lost Time Incident Rate. Includes employees and contractors.

4 Includes employees and contractors. Calculated according to U.S. Bureau of Labor Statistics (BLS) methodology.

5 Tier 1 and Tier 2 Process Safety Events as defined by the American Petroleum Institute RP-754.

This document contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Words and phrases such as “is anticipated,” “is estimated,” “is expected,” “is planned,” “is scheduled,” “is targeted,” “believes,” “continues,” “intends,” “will,” “would,” “objectives,” “goals,” “projects,” “efforts,” statements about strategies and statements that include similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements included in this document are based on management’s expectations, estimates and projections as of the date they are made. These statements are not guarantees of future performance, and you should not unduly rely on them as they involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include fluctuations in NGL, crude oil, and natural gas prices, and petrochemical and refining margins; unexpected changes in costs for constructing, modifying or operating our facilities; unexpected difficulties in manufacturing, refining or transporting our products; lack of, or disruptions in, adequate and reliable transportation for our NGL, crude oil, natural gas, and refined products; potential liability from litigation or for remedial actions, including removal and reclamation obligations under environmental regulations; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; potential disruption of our operations due to accidents, weather events, including as a result of climate change, terrorism or cyberattacks; general economic and political developments including: armed hostilities; expropriation of assets; changes in governmental policies relating to NGL, crude oil, natural gas or refined petroleum products pricing, regulation or taxation; and other political, economic or diplomatic developments, including those caused by public health issues and outbreaks; the impact of adverse market conditions or other similar risks to those identified herein affecting Phillips 66 Partners, as well as the ability of Phillips 66 Partners to successfully execute its growth plans; and other economic, business, competitive and/or regulatory factors affecting Phillips 66’s businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

Photos of individuals were captured prior to March 2020 or while social distancing.

Originally published March 2021.

21-0012 2021 © Phillips 66 Company. All rights reserved.

APPENDIX

49

To the employees of Phillips 66 — We salute you for providing the essential energy that kept our communities and the world going in 2020.

THANK YOU