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Copyright of Royal Dutch Shell plc 3 September 2014 1 
BALANCING GROWTH & RETURNS 
Barclays CEO Energy-Power Conference 
SEPTEMBER 3, 2014 
ROYAL DUTCH SHELL PLC
Copyright of Royal Dutch Shell plc 3 September 2014 2 
BEN VAN BEURDEN 
CHIEF EXECUTIVE OFFICER 
ROYAL DUTCH SHELL PLC
Copyright of Royal Dutch Shell plc 3 September 2014 3 
DEFINITIONS & CAUTIONARY NOTE 
Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves. 
Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil and gas reserves. Resources are consistent with the Society of 
Petroleum Engineers 2P and 2C definitions. 
Organic: Our use of the term Organic includes SEC proved oil and gas reserves excluding changes resulting from acquisitions, divestments and year-average pricing impact. 
Resources plays: our use of the term ‘resources plays’ refers to tight, shale and coal bed methane oil and gas acreage. 
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for 
convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those 
who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell 
companies” as used in this presentation refer to companies in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a 
controlling influence. The companies in which Shell has significant influence but not control are referred to as “associated companies” or “associates” and companies in which Shell has joint control 
are referred to as “jointly controlled entities”. In this presentation, associates and jointly controlled entities are also referred to as “equity-accounted investments”. The term “Shell interest” is used for 
convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest. 
This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical 
fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and 
assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. 
Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, 
beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, 
‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. There are a number of 
factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this 
presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; 
(e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and 
targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and 
regulatory developments including potential litigation and regulatory measures as a result of climate changes; (k) economic and financial market conditions in various countries and regions; (l) 
political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the 
reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary 
statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal 
Dutch Shell’s 20-F for the year ended 31 December, 2013 (available at www.shell.com/investor and www.sec.gov ). These factors also should be considered by the reader. Each forward-looking 
statement speaks only as of the date of this presentation, 3 September, 2014. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking 
statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking 
statements contained in this presentation. There can be no assurance that dividend payments will match or exceed those set out in this presentation in the future, or that they will be made at 
all. 
We use certain terms in this presentation, such as discovery potential, that the United States Securities and Exchange Commission (SEC) guidelines strictly prohibit us from including in filings with the 
SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain this form from the SEC by 
calling 1-800-SEC-0330.
Copyright of Royal Dutch Shell plc 3 September 2014 4 
2014 PRIORITIES 
 Returns and cash flow 
 Competitive returns for shareholders 
 Take hard choices on new options 
 Increase asset sales 
 Reduce pace of growth investment 
 Major deep-water start-ups in 2014 
 Integrate 2013 acquisitions 
Deliver new 
projects 
Enhance our 
capital efficiency 
Improve our 
financial 
performance
Copyright of Royal Dutch Shell plc 3 September 2014 5 
 Balancing risk and reward 
 Strict investment hurdles and price screens drive returns 
ASPIRED 
PORTFOLIO 
ATTRACTIVENESS 
Growth & returns 
Opportunity scale 
RESILIENCE 
Risk, perfo rmance & 
uncertainty 
PORTFOLIO MANAGEMENT 
STRATEGIC INTENT 
RESULTS & 
PAY-OUT
Copyright of Royal Dutch Shell plc 3 September 2014 6 
FUTURE 
OPPORTUNITIES 
RESOURCES 
PLAYS 
INTEGRATED DEEP-WATER 
GAS 
UPSTREAM DOWNSTREAM 
INVESTMENT PRIORITIES + STRATEGIC INTENT 
1 Iraq, Nigeria onshore (SPDC), Kazakhstan, heavy oil, Arctic 
Engines 
 Free cash flow businesses 
 Maintain competitiveness 
 Asset integrity + selective growth 
Growth Priority 
 Global leadership established 
 High-grading our rich opportunity set 
Longer Term 
 Major potential; managing non-technical risks 
 Slower pace + capital allocation 
 Credible, competitive, affordable 
 Investment choices driven on a global thematic basis 
1
Copyright of Royal Dutch Shell plc 3 September 2014 7 
DRIVING PERFORMANCE IN SHELL 
Policy from 1.1.2015 
 Performance units New shareholding requirements 
 Drive bottom line focus 
 Credible, competitive and affordable plans 
 Drives decisions on spending + divestment 
 Individual performance management 
 Stronger accountability for outcomes 
 New shareholding requirements for senior 
executives 
CEO 7 x base pay 
CFO 4 x base pay 
Top 200 executives below 
Executive Committee: 
1.5 x base pay 
Senior 
Executives
Copyright of Royal Dutch Shell plc 3 September 2014 8 
0 
5 
10 
15 
20 
25 
0 
10 
20 
30 
40 
50 
2010 2011 2012 2013 Q214 
-5 4Q rolling 
0 
5 
10 
15 
-10 
0 
10 
20 
30 
2010 2011 2012 2013 Q214 
4Q rolling 
0 
10 
20 
2010 2011 2012 2013 Q214 
4Q rolling 
IMPROVE FINANCIAL PERFORMANCE 
H1 2014 OUTCOME 
CCS earnings + ROACE excluding identified items 
Earnings + ROACE 
$ billion 
Cash flow 
$ billion 
Dividend + buy-back 
$ billion 
Upstream 
Downstream 
Corporate/Other 
Dividend declared Buy-back 
CFFO CFFI 
 Balancing returns + growth 
 Competitive shareholder returns 
 Expecting > $30 billion distributions to shareholders 
2014-15 
ROACE (RHS) Free cash flow (RHS) 
$ billion
Copyright of Royal Dutch Shell plc 3 September 2014 9 
IMPROVE FINANCIAL PERFORMANCE 
OIL PRODUCTS 
ROACE: CCS earnings excluding identified items 
Resilience 
Attractiveness 
Addressing underperforming portfolio 
0 
2 
4 
6 
8 
10 
12 
0 
2 
4 
6 
8 
10 
12 
2010 2011 2012 2013 Q214 
rolling 
Downstream CFFO + ROACE 
$ billion % 
Exit: 
 Italy  
 Norway 
 Australia  
 Denmark 
 others 
Fix: 
 Motiva 
 Singapore fuels 
 Pernis + Rheinland 
 others 
Selective Growth: 
Chemicals 
China 
LNG for transport 
 Premium fuels + lubes 
 Refinery crude flexibility 
 others 
completed 
 Announced divestments 2014 year to date: 
 180,000 b/d refinery capacity 
 300,000 b/d marketing 
 US mid-stream MLP proposal 
CFFO ROACE (RHS)
Copyright of Royal Dutch Shell plc 3 September 2014 10 
-2 
0 
2 
4 
6 
8 
10 
2010 2011 2012 2013 2014 H1* 2014E 
NORTH AMERICA RESOURCES PLAYS 
RESTRUCTURING SHELL PORTFOLIO 
* 2014 H1: 12 month rolling 
Elba LNG 
LNG 
Canada 
Groundbirch 
Deep Basin/Kaybob 
Foothills/Pembina 
Gas-to-chemicals 
Appalachia 
Liquids rich shales (LRS) 
Gas monetization options 
Permian 
Dry gas 
Gas/LRS 
Resilience 
Attractiveness 
$ billion 
LRS Dry gas Divestments Acquisitions 
-50% 
-20% 
North Americas capital investment  Dry gas: 
 Canada LNG supply 
 Appalachia appraisal 
 Liquid rich shales: 
 Appraisal in Western Canada + Permian 
 Profitability focus 
Portfolio 
Exit: 
 Eagle Ford  
 Mississippi Lime  
 Rockies LRS  
 Deep Basin (North)  
 Foothills (Burnt Timber)  
 Appalachia (Slippery 
Rock) 
 Pinedale 
 Haynesville 
Maintain / Grow: 
 W. Canada gas + 
integration plays 
 Appalachia 
 W. Canada LRS 
 Permian LRS 
LRS Plays 
completed 
Hold or Divest
Copyright of Royal Dutch Shell plc 3 September 2014 11 
ENHANCE CAPITAL EFFICIENCY 
Take hard choices on new options 
 More selectivity: FIDs >$500 million 
require CEO approval at FEED 
 Maturing new projects: LNG, deep-water 
Increase asset sales 
 ~$10 billion completed year-to-date 
 US midstream MLP proposal 
Reduce pace of growth investment 
 2014 organic spending ~$35 billion 
 Scrip cancellation reflects improving FCF 
 completed 
2014+ Asset sales / license expiry 
 Wheatstone LNG  
 BC-10 dilution  
 North America non-core LRS  
 Italy Downstream  
 ADCO license expiry  
 Woodside 
market sell down  
 Australia  / Denmark / 
Norway Downstream 
 Nigeria onshore 
 Mature UKCS + GOM assets 
 Pinedale + Haynesville dry gas 
 Others 
 340,000 boed upstream 
 180,000 b/d refining 
 300,000 b/d marketing
Copyright of Royal Dutch Shell plc 3 September 2014 12 
0 
20 
40 
Jan-14 
Feb-14 
Mar-14 
Apr-14 
May-14 
Jun-14 
DELIVER NEW PROJECTS 
2014 START-UPS 
Mars B – February 2014 start-up 
Mars B production ramp-up progress 
Cardamom: H2 2014 start-up 
Gumusut-Kakap: H2 2014 start-up 
Shell 72%, 100 kboe/d 
Shell 100%, 50 kboe/d Shell 33%, 135 kboe/d 
kboed
Copyright of Royal Dutch Shell plc 3 September 2014 13 
CONVENTIONAL EXPLORATION PROGRESS 
DELIVERY 2014 
 Rosmari & Marjoram gas 
discoveries in Block SK318 
 New Deep-water gas potential 
 Shell 85% 
 4 near field gas discoveries in 
2014 (100% success rate) 
 Adding gas to Malaysia 
heartland 
 Shell 30% 
 Deep-water oil discovery 16 km 
south of Appomattox 
 ~100 million boe 
 Shell 57.2% 
 3rd Norphlet discovery 
Malaysia Deep-water Gas Malaysia, Block SK408 GOM, Rydberg Deep 
Doo Sung rig Gorek-1 3D Noble Globetrotter 1
Copyright of Royal Dutch Shell plc 3 September 2014 14 
0 
25 
50 
UP 
STREAM 
DOWN 
STREAM 
CASH FLOW AND PAY-OUT 
Cash generation 
$ billion, Q214 4Q rolling 
Gearing + balance sheet 
$ billion 
Cash flow from 
operations Net cash used in investing activities 
Dividend and buy back 
0% 
10% 
20% 
30% 
0 
10 
20 
30 
2010 2011 2012 2013 14Q2 
Gearing 
range 
Net debt Gearing (RHS) 
12 months 
rolling 
0 
6 
12 
2006 2007 2008 2009 2010 2011 2012 2013 14Q2 
Dividends declared 12 months 
rolling 
Dividend track record 
$ billion 
 Scrip dividend cancelled from Q2 2014 
 Buy back $7-8 billion 2014-15 combined 
 ~$1.6 billion H1 2014
Copyright of Royal Dutch Shell plc 3 September 2014 15 
COMPETITIVE PERFORMANCE: BALANCING GROWTH AND RETURNS 
4Q ROLLING 
Free cash flow: cash flow from operations less cash used in investing activities; 
ROACE underlying: European companies: CCS basis excluding identified items. US companies: reported earnings excluding special non-operating items. 
Cash flow from operations 
$ billion 
Free cash flow 
$ billion 
ROACE – underlying 
% 
0 
10 
20 
2010 2011 2012 2013 2014 
Shell Peer group 
 Driving competitive performance 
0 
20 
40 
60 
2010 2011 2012 2013 2014 
-10 
0 
10 
20 
30 
40 
2010 2011 2012 2013 2014
Copyright of Royal Dutch Shell plc 3 September 2014 16 
2014 PRIORITIES 
 Returns and cash flow 
 Competitive returns for shareholders 
 Take hard choices on new options 
 Increase asset sales 
 Reduce pace of growth investment 
 Major deep-water start-ups in 2014 
 Integrate 2013 acquisitions 
Deliver new 
projects 
Enhance our 
capital efficiency 
Improve our 
financial 
performance
Copyright of Royal Dutch Shell plc 3 September 2014 17 
QUESTIONS & ANSWERS

More Related Content

Ben van Beurden – Barclays CEO Energy-Power Conference in New York, New York. September 3, 2014

  • 1. Copyright of Royal Dutch Shell plc 3 September 2014 1 BALANCING GROWTH & RETURNS Barclays CEO Energy-Power Conference SEPTEMBER 3, 2014 ROYAL DUTCH SHELL PLC
  • 2. Copyright of Royal Dutch Shell plc 3 September 2014 2 BEN VAN BEURDEN CHIEF EXECUTIVE OFFICER ROYAL DUTCH SHELL PLC
  • 3. Copyright of Royal Dutch Shell plc 3 September 2014 3 DEFINITIONS & CAUTIONARY NOTE Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves. Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil and gas reserves. Resources are consistent with the Society of Petroleum Engineers 2P and 2C definitions. Organic: Our use of the term Organic includes SEC proved oil and gas reserves excluding changes resulting from acquisitions, divestments and year-average pricing impact. Resources plays: our use of the term ‘resources plays’ refers to tight, shale and coal bed methane oil and gas acreage. The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as “associated companies” or “associates” and companies in which Shell has joint control are referred to as “jointly controlled entities”. In this presentation, associates and jointly controlled entities are also referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest. This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory measures as a result of climate changes; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended 31 December, 2013 (available at www.shell.com/investor and www.sec.gov ). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, 3 September, 2014. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. There can be no assurance that dividend payments will match or exceed those set out in this presentation in the future, or that they will be made at all. We use certain terms in this presentation, such as discovery potential, that the United States Securities and Exchange Commission (SEC) guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain this form from the SEC by calling 1-800-SEC-0330.
  • 4. Copyright of Royal Dutch Shell plc 3 September 2014 4 2014 PRIORITIES  Returns and cash flow  Competitive returns for shareholders  Take hard choices on new options  Increase asset sales  Reduce pace of growth investment  Major deep-water start-ups in 2014  Integrate 2013 acquisitions Deliver new projects Enhance our capital efficiency Improve our financial performance
  • 5. Copyright of Royal Dutch Shell plc 3 September 2014 5  Balancing risk and reward  Strict investment hurdles and price screens drive returns ASPIRED PORTFOLIO ATTRACTIVENESS Growth & returns Opportunity scale RESILIENCE Risk, perfo rmance & uncertainty PORTFOLIO MANAGEMENT STRATEGIC INTENT RESULTS & PAY-OUT
  • 6. Copyright of Royal Dutch Shell plc 3 September 2014 6 FUTURE OPPORTUNITIES RESOURCES PLAYS INTEGRATED DEEP-WATER GAS UPSTREAM DOWNSTREAM INVESTMENT PRIORITIES + STRATEGIC INTENT 1 Iraq, Nigeria onshore (SPDC), Kazakhstan, heavy oil, Arctic Engines  Free cash flow businesses  Maintain competitiveness  Asset integrity + selective growth Growth Priority  Global leadership established  High-grading our rich opportunity set Longer Term  Major potential; managing non-technical risks  Slower pace + capital allocation  Credible, competitive, affordable  Investment choices driven on a global thematic basis 1
  • 7. Copyright of Royal Dutch Shell plc 3 September 2014 7 DRIVING PERFORMANCE IN SHELL Policy from 1.1.2015  Performance units New shareholding requirements  Drive bottom line focus  Credible, competitive and affordable plans  Drives decisions on spending + divestment  Individual performance management  Stronger accountability for outcomes  New shareholding requirements for senior executives CEO 7 x base pay CFO 4 x base pay Top 200 executives below Executive Committee: 1.5 x base pay Senior Executives
  • 8. Copyright of Royal Dutch Shell plc 3 September 2014 8 0 5 10 15 20 25 0 10 20 30 40 50 2010 2011 2012 2013 Q214 -5 4Q rolling 0 5 10 15 -10 0 10 20 30 2010 2011 2012 2013 Q214 4Q rolling 0 10 20 2010 2011 2012 2013 Q214 4Q rolling IMPROVE FINANCIAL PERFORMANCE H1 2014 OUTCOME CCS earnings + ROACE excluding identified items Earnings + ROACE $ billion Cash flow $ billion Dividend + buy-back $ billion Upstream Downstream Corporate/Other Dividend declared Buy-back CFFO CFFI  Balancing returns + growth  Competitive shareholder returns  Expecting > $30 billion distributions to shareholders 2014-15 ROACE (RHS) Free cash flow (RHS) $ billion
  • 9. Copyright of Royal Dutch Shell plc 3 September 2014 9 IMPROVE FINANCIAL PERFORMANCE OIL PRODUCTS ROACE: CCS earnings excluding identified items Resilience Attractiveness Addressing underperforming portfolio 0 2 4 6 8 10 12 0 2 4 6 8 10 12 2010 2011 2012 2013 Q214 rolling Downstream CFFO + ROACE $ billion % Exit:  Italy   Norway  Australia   Denmark  others Fix:  Motiva  Singapore fuels  Pernis + Rheinland  others Selective Growth: Chemicals China LNG for transport  Premium fuels + lubes  Refinery crude flexibility  others completed  Announced divestments 2014 year to date:  180,000 b/d refinery capacity  300,000 b/d marketing  US mid-stream MLP proposal CFFO ROACE (RHS)
  • 10. Copyright of Royal Dutch Shell plc 3 September 2014 10 -2 0 2 4 6 8 10 2010 2011 2012 2013 2014 H1* 2014E NORTH AMERICA RESOURCES PLAYS RESTRUCTURING SHELL PORTFOLIO * 2014 H1: 12 month rolling Elba LNG LNG Canada Groundbirch Deep Basin/Kaybob Foothills/Pembina Gas-to-chemicals Appalachia Liquids rich shales (LRS) Gas monetization options Permian Dry gas Gas/LRS Resilience Attractiveness $ billion LRS Dry gas Divestments Acquisitions -50% -20% North Americas capital investment  Dry gas:  Canada LNG supply  Appalachia appraisal  Liquid rich shales:  Appraisal in Western Canada + Permian  Profitability focus Portfolio Exit:  Eagle Ford   Mississippi Lime   Rockies LRS   Deep Basin (North)   Foothills (Burnt Timber)   Appalachia (Slippery Rock)  Pinedale  Haynesville Maintain / Grow:  W. Canada gas + integration plays  Appalachia  W. Canada LRS  Permian LRS LRS Plays completed Hold or Divest
  • 11. Copyright of Royal Dutch Shell plc 3 September 2014 11 ENHANCE CAPITAL EFFICIENCY Take hard choices on new options  More selectivity: FIDs >$500 million require CEO approval at FEED  Maturing new projects: LNG, deep-water Increase asset sales  ~$10 billion completed year-to-date  US midstream MLP proposal Reduce pace of growth investment  2014 organic spending ~$35 billion  Scrip cancellation reflects improving FCF  completed 2014+ Asset sales / license expiry  Wheatstone LNG   BC-10 dilution   North America non-core LRS   Italy Downstream   ADCO license expiry   Woodside market sell down   Australia  / Denmark / Norway Downstream  Nigeria onshore  Mature UKCS + GOM assets  Pinedale + Haynesville dry gas  Others  340,000 boed upstream  180,000 b/d refining  300,000 b/d marketing
  • 12. Copyright of Royal Dutch Shell plc 3 September 2014 12 0 20 40 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 DELIVER NEW PROJECTS 2014 START-UPS Mars B – February 2014 start-up Mars B production ramp-up progress Cardamom: H2 2014 start-up Gumusut-Kakap: H2 2014 start-up Shell 72%, 100 kboe/d Shell 100%, 50 kboe/d Shell 33%, 135 kboe/d kboed
  • 13. Copyright of Royal Dutch Shell plc 3 September 2014 13 CONVENTIONAL EXPLORATION PROGRESS DELIVERY 2014  Rosmari & Marjoram gas discoveries in Block SK318  New Deep-water gas potential  Shell 85%  4 near field gas discoveries in 2014 (100% success rate)  Adding gas to Malaysia heartland  Shell 30%  Deep-water oil discovery 16 km south of Appomattox  ~100 million boe  Shell 57.2%  3rd Norphlet discovery Malaysia Deep-water Gas Malaysia, Block SK408 GOM, Rydberg Deep Doo Sung rig Gorek-1 3D Noble Globetrotter 1
  • 14. Copyright of Royal Dutch Shell plc 3 September 2014 14 0 25 50 UP STREAM DOWN STREAM CASH FLOW AND PAY-OUT Cash generation $ billion, Q214 4Q rolling Gearing + balance sheet $ billion Cash flow from operations Net cash used in investing activities Dividend and buy back 0% 10% 20% 30% 0 10 20 30 2010 2011 2012 2013 14Q2 Gearing range Net debt Gearing (RHS) 12 months rolling 0 6 12 2006 2007 2008 2009 2010 2011 2012 2013 14Q2 Dividends declared 12 months rolling Dividend track record $ billion  Scrip dividend cancelled from Q2 2014  Buy back $7-8 billion 2014-15 combined  ~$1.6 billion H1 2014
  • 15. Copyright of Royal Dutch Shell plc 3 September 2014 15 COMPETITIVE PERFORMANCE: BALANCING GROWTH AND RETURNS 4Q ROLLING Free cash flow: cash flow from operations less cash used in investing activities; ROACE underlying: European companies: CCS basis excluding identified items. US companies: reported earnings excluding special non-operating items. Cash flow from operations $ billion Free cash flow $ billion ROACE – underlying % 0 10 20 2010 2011 2012 2013 2014 Shell Peer group  Driving competitive performance 0 20 40 60 2010 2011 2012 2013 2014 -10 0 10 20 30 40 2010 2011 2012 2013 2014
  • 16. Copyright of Royal Dutch Shell plc 3 September 2014 16 2014 PRIORITIES  Returns and cash flow  Competitive returns for shareholders  Take hard choices on new options  Increase asset sales  Reduce pace of growth investment  Major deep-water start-ups in 2014  Integrate 2013 acquisitions Deliver new projects Enhance our capital efficiency Improve our financial performance
  • 17. Copyright of Royal Dutch Shell plc 3 September 2014 17 QUESTIONS & ANSWERS