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Copyright of Royal Dutch Shell plc 30 January, 2014 1
FOURTH QUARTER 2013 RESULTS
30 JANUARY 2014
ROYAL DUTCH SHELL PLC
Copyright of Royal Dutch Shell plc 30 January, 2014 2
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 (for example, through our 23% shareholding in Woodside Petroleum Ltd.) 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, 2012 (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, 30 January, 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.
DEFINITIONS AND CAUTIONARY NOTE
Copyright of Royal Dutch Shell plc 30 January, 2014 3
BEN VAN BEURDEN
CHIEF EXECUTIVE OFFICER
ROYAL DUTCH SHELL PLC
Copyright of Royal Dutch Shell plc 30 January, 2014 4
‘GOAL ZERO’ ON SAFETY
injuries – TRCF/million working hours million working hours
TRCF
Working hours
UNRELENTING FOCUS ON HSSE
PERFORMANCE + TRANSPARENCY
Copyright of Royal Dutch Shell plc 30 January, 2014 5
SHELL STRATEGY
Prelude, November 2013
 Unrelenting focus on HSE
 Technology, integration and scale
 Disciplined capital investment by strategic theme
 Growth in cash flow through-cycle
 Executing a consistent, long term strategy
 Competitive shareholder returns
Copyright of Royal Dutch Shell plc 30 January, 2014 6
EARNINGS
$ billion
CASH FLOW
$ billion
Cash flow from operations
Asset sales
Capex
Acquisitions
2011-2013 DELIVERY
Upstream
Downstream
Corporate
Identified items
Dividend
Buy-backs
PRIORITY TO IMPROVE FINANCIAL PERFORMANCE
2012 20132011
Copyright of Royal Dutch Shell plc 30 January, 2014 7
Shell full year 2013, peer group 2013 12-month rolling to 2013Q3
ROACE: reported earnings local GAAP, 3 year rolling average. Shell 2011-2013, peer
group as 2011-2013Q3 12 months rolling basis
CASH FLOW FROM OPERATIONS
$ billion
Shell
peer group
ROACE
%
COMPETITIVE CASH FLOW + RETURNS
peer group
Shell
 DISCIPLINED THROUGH CYCLE INVESTMENT DRIVES FINANCIAL GROWTH
 COMPETITIVE CFFO BUILDUP + FURTHER POTENTIAL
Copyright of Royal Dutch Shell plc 30 January, 2014 8
Deliver new
projects
 Returns and cash flow
 Competitive returns for shareholders
 Hard choices on new projects
 Increase divestment of non-core assets
 Reduce pace of growth investment
 Major deep water start-ups in 2014
 Integrate 2013 acquisitions
 Operational performance and project delivery
Improve our
financial
performance
Enhance our
capital efficiency
2014 PRIORITIES
 CHANGING EMPHASIS IN 2014
Copyright of Royal Dutch Shell plc 30 January, 2014 9
RESOURCES PLAYS RESTRUCTURING OIL PRODUCTS RESTRUCTURING
 50% reduction in operating theatres
 Gas focussed on to integrated plays
 Growth liquids
IMPROVE OUR FINANCIAL PERFORMANCE:
RESPONDING TO MARKET DYNAMICS IN OIL PRODUCTS + NORTH AMERICA ONSHORE
 Reorganising value chain accountability
 Exit from non-core portfolio
 Growth chemicals
 PORTFOLIO RESTRUCTURING + POTENTIAL WRITE-DOWNS
 COST REDUCTION
 MORE SELECTIVE ON GROWTH OPPORTUNITIES
Regional refinery hubs
Operating theatres
Elba LNG
Gas-to-Chemicals
LNG
Canada
Announced divestment
Integration options




Portfolio reduction



Northeast BC
Deep Basin/Foxcreek
Foothills
US Rockies
Appalachia
Mississippi
Lime
Haynesville
Permian
Eagle Ford
Copyright of Royal Dutch Shell plc 30 January, 2014 10
Prelude
dilution 
Wheatstone
Browse
LNG onshore 


IMPROVE OUR CAPITAL EFFICIENCY:
SHARPENING OUR FOCUS
Option re-framing
Downstream
ASSET SALES
$ billion
Eagle Ford
Harburg refinery
Czech refinery
Nigeria
SPDC leases
Arrow LNG
FID postponed
Exit
Niobrara
Sandwash Basin
Mississippi Lime
Mongstad/Pernis swap 
Italy downstream reduction
Fram
Linnorm
 HARD PORTFOLIO CHOICES
 $15 BILLION ASSET SALES 2014-15
Norway downstream reduction
Downstream
Upstream
Upstream
2013+ divestments}
Ohio Utica 
Completed
Gulf Coast GTL 
Copyright of Royal Dutch Shell plc 30 January, 2014 11
Engines
 Free cash flow plays
 Asset integrity + selective growth
Growth Priority
 Global leadership
 Strong project flow
Longer Term
 Major potential with surface challenges
 Slower pace + capital allocation
IMPROVE CAPITAL EFFICIENCY:
2014 INVESTMENT PRIORITIES
 CREDIBLE, COMPETITIVE, AFFORDABLE
 INVESTMENT CHOICES DRIVEN ON A GLOBAL THEMATIC BASIS
 REDUCED PACE OF GROWTH INVESTMENT
1 Iraq, Nigeria, Kazakhstan, heavy oil, Arctic
FUTURE
OPPORTUNITIES
RESOURCES
PLAYS
DEEP-WATERINTEGRATED
GAS
UPSTREAM DOWNSTREAM
1
Copyright of Royal Dutch Shell plc 30 January, 2014 12
DELIVER NEW PROJECTS:
TOP 4 START-UPS 2014
Mars-B  Preparing for start-up
Gumusut-Kakap
 Subsea systems tie-in
completed. H2 ‘14 start-up
Cardamom
 Auger facility upgrades
ongoing. H2 ’14 start-up
Repsol LNG
 Transaction completed
Jan’14, integration ongoing
Gumusut-Kakap FPS, 135 kboe/d, Shell 33%Cardamom, 50 kboe/d, Shell 100%
Mars-B, 100 kboe/d, Shell 72%
Copyright of Royal Dutch Shell plc 30 January, 2014 13
Indexed 2000=100, dividends paid in year
Excludes $1.7 billion payout to former shareholders of Royal Dutch as part of the 2005 unification.
RDS dividend per share in USD
Inflation (US CPI, Annual Average)
 Q1 2014 DIVIDEND
$0.47/SHARE, > +4%
 SHARE BUY BACK
LEADING DIVIDEND TRACK RECORD
Copyright of Royal Dutch Shell plc 30 January, 2014 14
SIMON HENRY
CHIEF FINANCIAL OFFICER
ROYAL DUTCH SHELL PLC
Copyright of Royal Dutch Shell plc 30 January, 2014 15
2013 PERFORMANCE
Majnoon, July 2013
2013 delivery
 CCS earnings $19 bln; CFFO $40 bln
 7 new start-ups
 Iraq oil & gas, BC-10 ph 2, North Rankin
gas, others
Acquisitions to enhance portfolio
 Repsol LNG, Libra, ‘engines’ bolt-ons
Decisive on portfolio
 Non-core asset sales:
 Oil Products
 Nigeria onshore
 North America LRS
 US GTL cancelled
Earnings excluding identified items
Copyright of Royal Dutch Shell plc 30 January, 2014 16
Earnings CCS basis, Earnings excluding identified items
EARNINGS 2012 TO 2013
2012 2013
$ billion
UPSTREAM 20.1 15.1
DOWNSTREAM (CCS) 5.3 4.5
CORPORATE & MINORITIES (0.2) (0.1)
CCS NET EARNINGS 25.3 19.5
CCS EARNINGS, $ PER SHARE 4.03 3.10
CASH FROM OPERATIONS 46.1 40.4
SHARE BUY BACKS 1.5 5.0
DIVIDENDS 11.0 11.3
DIVIDEND, $ PER SHARE 1.72 1.80
2013 FINANCIAL HIGHLIGHTS
EARNINGS 2012 TO 2013
$ billion
Copyright of Royal Dutch Shell plc 30 January, 2014 17
EARNINGS 2012 TO 2013
$ billion
Earnings CCS basis, Earnings excluding identified items
EARNINGS Q4 2012 TO Q4 2013
$ billion
2013 FINANCIAL HIGHLIGHTS
Environment Choice Environment Choice
0.0
Copyright of Royal Dutch Shell plc 30 January, 2014 18
UPSTREAM
million boe/day million tonnes
Oil
Gas
LNG Sales (RHS)
DOWNSTREAM
% availability volume
Refinery availability
Chemicals availability
Oil products sales (million b/d)
Chemicals sales (million tonnes)
UPSTREAM
 Q4-Q4 underlying decline 3%1
 Growth from NA LRS, Iraq, Malaysia
 40 kboe/d Nigeria sabotage Q4-Q4
 95 kboe/d maintenance Q4-Q4
DOWNSTREAM
 Q4-Q4 underlying OP volumes lower, Chemicals
volumes similar
Q1 – Q1 OUTLOOK
 Nigeria operating challenges
 Production impact:
 ADCO licence expiry 155 kboe/d
 NAM curtailment 60 kboe/d
 Maintenance 50 kboe/d
 Increased exploration charges
 Increased Upstream DD&A
 Reduced refinery availability
OPERATIONAL PERFORMANCE + OUTLOOK
1 Excludes Nigeria security , PSC price effect + asset sales
Copyright of Royal Dutch Shell plc 30 January, 2014 19
CFFO
Asset sales
GROUP 12 MONTHS CASH PERFORMANCE
$ billion
Capex Dividend
Buy-backs
CASH PERFORMANCE + PAYOUT
Sources Uses
GEARING AND PAY OUT
$ billion %
Free cash flow (FCF)
Gearing (RHS)
Dividend
Buyback
BUSINESS 12 MONTH CASH PERFORMANCE
$ billion
Acquisitions
Upstream Downstream
Sources Uses
Sources Uses
30
15
0
 2013 ACQUISITION IMPACTS
 2014 FCF EXPANSION POTENTIAL
Copyright of Royal Dutch Shell plc 30 January, 2014 20
$ billion cumulative
Previous outlook set in 2012 for 2012-15: CFFO $175-$200 billion; net capital investment $120-$130 billion @ $80-$100 oil prices
Cash flow from operations
Net capital investment
FINANCIAL PERFORMANCE
2012-2013
 CFFO impacted by macro,
portfolio + choices +
performance
 Net capital investment lifted by
acquisitions
Dividends distributed + buy-backs
Previous target framework 2012-15
Copyright of Royal Dutch Shell plc 30 January, 2014 21
FINANCIAL FRAMEWORK AND PRIORITIES
CASH
PERFORMANCE
CFFO drives
investment + payout
INVESTMENT
Affordability,
profitability,
portfolio
PAY-OUT
Dividend linked to
business results
BALANCE SHEET
0 – 30% gearing
through cycle
Priorities for cash
1. Debt service
2. Dividends: growth policy
3. Capital investment: disciplined through
cycle growth
4. Return surplus cash: buy-backs
CONSERVATIVE BALANCE SHEET
UNDERPINS FINANCIAL
FRAMEWORK
Copyright of Royal Dutch Shell plc 30 January, 2014 22
PORTFOLIO DEVELOPMENT 2013
Acquisition /
entry
Exit
Discovery
Final Investment
Decision
Start-up
 Nigeria on-shore
asset sales
 G/U Phase 2
 TNP loop-line
 Carmon Creek
 AOSP debottlenecking
 Basrah Gas Company
 Majnoon
 Kashagan
 North America asset
sales
 Coulomb North
 BC-10 pre-emption
 Libra entry
 Vicksburg discovery
 Zabazaba-4 appraisal
 Erha North Ph2
 Stones
 BC-10 Massa Ph3
 BC-10 Phase 2
 Repsol LNG
 Elba LNG JV
 Abadi LNG
 Prelude dilution
 Browse onshore
 Gulf Coast GTL
 Wheatstone LNG
 Kentish Knock gas
discovery
 North Rankin
Redevelopment
 Beryl & Schiehallion
 Bab Sour gas
 Albania Shpiraq-2
 Amal Steam
 Poland: retail
 Geelong
 Italy
 Harburg refinery
 Pernis/Mongstad
swap
 Singapore
Chemicals
 Gulf Coast GTT
 Great Lakes GTT
Group
delivery
$8 billion $2 billion 4 discoveries 9 FIDs 7 start-ups
UPSTREAM
ENGINE
INTEGRATED
GAS
RESOURCES
PLAYS
DEEP-WATER
FUTURE
OPPORTUNITIES
DOWNSTREAM
ENGINE
(completed)




Copyright of Royal Dutch Shell plc 30 January, 2014 23
INCREASING SHELL’S MANAGED SALES + TRADING OPTIONS
SHELL PORTFOLIO SHELL LNG LEADERSHIP
Year end equity liquefaction capacity in mtpa
REPSOL LNG ACQUISITION
QG-4
Altamira
Cove Point
Elba
Baja Hazira
Spain
NWSPluto
Sakhalin
Oman
Malaysia
+ Brunei
Nigeria
Peru LNG
Atlantic LNG
Gorgon
Repsol portfolio
LNG supply
Prelude
Re-gasification
Under construction
Shell:
Trading flows
2014
Shell directly managed
Joint venture marketed
total LNG volumes in mtpa
2013
2017
Repsol acquisition (2014+)
2013
>25 mtpa >30 mtpa
Copyright of Royal Dutch Shell plc 30 January, 2014 24
$ billion
INVESTING FOR LONG TERM GROWTH
FUTURE
OPPORTUNITIES
RESOURCES
PLAYS
DEEP-WATER
INTEGRATED
GAS
UPSTREAM
DOWNSTREAM
LONGER
TERM
GROWTH
PRIORITY
ENGINES
1 Announced acquisitions (Repsol, Basrah Gas capital injection)
 2013 -14 INVESTMENT LIFTED BY
ACQUISITIONS
 ORGANIC SPENDING REDUCTION
2014
TOTAL CAPITAL INVESTMENT FY
2012
FY
2013
FY
2014E
$ billion
ORGANIC CAPEX 32 38 ~35
ACQUISITIONS 5 8 2
1
TOTAL CAPITAL INVESTMENT 37 46 37
Copyright of Royal Dutch Shell plc 30 January, 2014 25
BEN VAN BEURDEN
CHIEF EXECUTIVE OFFICER
ROYAL DUTCH SHELL PLC
Copyright of Royal Dutch Shell plc 30 January, 2014 26
Deliver new
projects
 Returns and cash flow
 Competitive returns for shareholders
 Hard choices on new projects
 Increase divestment of non-core assets
 Reduce pace of growth investment
 Major deep water start-ups in 2014
 Integrate 2013 acquisitions
 Operational performance and project delivery
Improve our
financial
performance
Enhance our
capital efficiency
2014 PRIORITIES
 CHANGING EMPHASIS IN 2014
Copyright of Royal Dutch Shell plc 30 January, 2014 27
QUESTIONS & ANSWERS
FOURTH QUARTER 2013 RESULTS
Copyright of Royal Dutch Shell plc 30 January, 2014 28
FOURTH QUARTER 2013 RESULTS
30 JANUARY 2014
ROYAL DUTCH SHELL PLC

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Webcast presentation Royal Dutch Shell plc fourth quarter and full year 2013 results

  • 1. Copyright of Royal Dutch Shell plc 30 January, 2014 1 FOURTH QUARTER 2013 RESULTS 30 JANUARY 2014 ROYAL DUTCH SHELL PLC
  • 2. Copyright of Royal Dutch Shell plc 30 January, 2014 2 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 (for example, through our 23% shareholding in Woodside Petroleum Ltd.) 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, 2012 (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, 30 January, 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. DEFINITIONS AND CAUTIONARY NOTE
  • 3. Copyright of Royal Dutch Shell plc 30 January, 2014 3 BEN VAN BEURDEN CHIEF EXECUTIVE OFFICER ROYAL DUTCH SHELL PLC
  • 4. Copyright of Royal Dutch Shell plc 30 January, 2014 4 ‘GOAL ZERO’ ON SAFETY injuries – TRCF/million working hours million working hours TRCF Working hours UNRELENTING FOCUS ON HSSE PERFORMANCE + TRANSPARENCY
  • 5. Copyright of Royal Dutch Shell plc 30 January, 2014 5 SHELL STRATEGY Prelude, November 2013  Unrelenting focus on HSE  Technology, integration and scale  Disciplined capital investment by strategic theme  Growth in cash flow through-cycle  Executing a consistent, long term strategy  Competitive shareholder returns
  • 6. Copyright of Royal Dutch Shell plc 30 January, 2014 6 EARNINGS $ billion CASH FLOW $ billion Cash flow from operations Asset sales Capex Acquisitions 2011-2013 DELIVERY Upstream Downstream Corporate Identified items Dividend Buy-backs PRIORITY TO IMPROVE FINANCIAL PERFORMANCE 2012 20132011
  • 7. Copyright of Royal Dutch Shell plc 30 January, 2014 7 Shell full year 2013, peer group 2013 12-month rolling to 2013Q3 ROACE: reported earnings local GAAP, 3 year rolling average. Shell 2011-2013, peer group as 2011-2013Q3 12 months rolling basis CASH FLOW FROM OPERATIONS $ billion Shell peer group ROACE % COMPETITIVE CASH FLOW + RETURNS peer group Shell  DISCIPLINED THROUGH CYCLE INVESTMENT DRIVES FINANCIAL GROWTH  COMPETITIVE CFFO BUILDUP + FURTHER POTENTIAL
  • 8. Copyright of Royal Dutch Shell plc 30 January, 2014 8 Deliver new projects  Returns and cash flow  Competitive returns for shareholders  Hard choices on new projects  Increase divestment of non-core assets  Reduce pace of growth investment  Major deep water start-ups in 2014  Integrate 2013 acquisitions  Operational performance and project delivery Improve our financial performance Enhance our capital efficiency 2014 PRIORITIES  CHANGING EMPHASIS IN 2014
  • 9. Copyright of Royal Dutch Shell plc 30 January, 2014 9 RESOURCES PLAYS RESTRUCTURING OIL PRODUCTS RESTRUCTURING  50% reduction in operating theatres  Gas focussed on to integrated plays  Growth liquids IMPROVE OUR FINANCIAL PERFORMANCE: RESPONDING TO MARKET DYNAMICS IN OIL PRODUCTS + NORTH AMERICA ONSHORE  Reorganising value chain accountability  Exit from non-core portfolio  Growth chemicals  PORTFOLIO RESTRUCTURING + POTENTIAL WRITE-DOWNS  COST REDUCTION  MORE SELECTIVE ON GROWTH OPPORTUNITIES Regional refinery hubs Operating theatres Elba LNG Gas-to-Chemicals LNG Canada Announced divestment Integration options     Portfolio reduction    Northeast BC Deep Basin/Foxcreek Foothills US Rockies Appalachia Mississippi Lime Haynesville Permian Eagle Ford
  • 10. Copyright of Royal Dutch Shell plc 30 January, 2014 10 Prelude dilution  Wheatstone Browse LNG onshore    IMPROVE OUR CAPITAL EFFICIENCY: SHARPENING OUR FOCUS Option re-framing Downstream ASSET SALES $ billion Eagle Ford Harburg refinery Czech refinery Nigeria SPDC leases Arrow LNG FID postponed Exit Niobrara Sandwash Basin Mississippi Lime Mongstad/Pernis swap  Italy downstream reduction Fram Linnorm  HARD PORTFOLIO CHOICES  $15 BILLION ASSET SALES 2014-15 Norway downstream reduction Downstream Upstream Upstream 2013+ divestments} Ohio Utica  Completed Gulf Coast GTL 
  • 11. Copyright of Royal Dutch Shell plc 30 January, 2014 11 Engines  Free cash flow plays  Asset integrity + selective growth Growth Priority  Global leadership  Strong project flow Longer Term  Major potential with surface challenges  Slower pace + capital allocation IMPROVE CAPITAL EFFICIENCY: 2014 INVESTMENT PRIORITIES  CREDIBLE, COMPETITIVE, AFFORDABLE  INVESTMENT CHOICES DRIVEN ON A GLOBAL THEMATIC BASIS  REDUCED PACE OF GROWTH INVESTMENT 1 Iraq, Nigeria, Kazakhstan, heavy oil, Arctic FUTURE OPPORTUNITIES RESOURCES PLAYS DEEP-WATERINTEGRATED GAS UPSTREAM DOWNSTREAM 1
  • 12. Copyright of Royal Dutch Shell plc 30 January, 2014 12 DELIVER NEW PROJECTS: TOP 4 START-UPS 2014 Mars-B  Preparing for start-up Gumusut-Kakap  Subsea systems tie-in completed. H2 ‘14 start-up Cardamom  Auger facility upgrades ongoing. H2 ’14 start-up Repsol LNG  Transaction completed Jan’14, integration ongoing Gumusut-Kakap FPS, 135 kboe/d, Shell 33%Cardamom, 50 kboe/d, Shell 100% Mars-B, 100 kboe/d, Shell 72%
  • 13. Copyright of Royal Dutch Shell plc 30 January, 2014 13 Indexed 2000=100, dividends paid in year Excludes $1.7 billion payout to former shareholders of Royal Dutch as part of the 2005 unification. RDS dividend per share in USD Inflation (US CPI, Annual Average)  Q1 2014 DIVIDEND $0.47/SHARE, > +4%  SHARE BUY BACK LEADING DIVIDEND TRACK RECORD
  • 14. Copyright of Royal Dutch Shell plc 30 January, 2014 14 SIMON HENRY CHIEF FINANCIAL OFFICER ROYAL DUTCH SHELL PLC
  • 15. Copyright of Royal Dutch Shell plc 30 January, 2014 15 2013 PERFORMANCE Majnoon, July 2013 2013 delivery  CCS earnings $19 bln; CFFO $40 bln  7 new start-ups  Iraq oil & gas, BC-10 ph 2, North Rankin gas, others Acquisitions to enhance portfolio  Repsol LNG, Libra, ‘engines’ bolt-ons Decisive on portfolio  Non-core asset sales:  Oil Products  Nigeria onshore  North America LRS  US GTL cancelled Earnings excluding identified items
  • 16. Copyright of Royal Dutch Shell plc 30 January, 2014 16 Earnings CCS basis, Earnings excluding identified items EARNINGS 2012 TO 2013 2012 2013 $ billion UPSTREAM 20.1 15.1 DOWNSTREAM (CCS) 5.3 4.5 CORPORATE & MINORITIES (0.2) (0.1) CCS NET EARNINGS 25.3 19.5 CCS EARNINGS, $ PER SHARE 4.03 3.10 CASH FROM OPERATIONS 46.1 40.4 SHARE BUY BACKS 1.5 5.0 DIVIDENDS 11.0 11.3 DIVIDEND, $ PER SHARE 1.72 1.80 2013 FINANCIAL HIGHLIGHTS EARNINGS 2012 TO 2013 $ billion
  • 17. Copyright of Royal Dutch Shell plc 30 January, 2014 17 EARNINGS 2012 TO 2013 $ billion Earnings CCS basis, Earnings excluding identified items EARNINGS Q4 2012 TO Q4 2013 $ billion 2013 FINANCIAL HIGHLIGHTS Environment Choice Environment Choice 0.0
  • 18. Copyright of Royal Dutch Shell plc 30 January, 2014 18 UPSTREAM million boe/day million tonnes Oil Gas LNG Sales (RHS) DOWNSTREAM % availability volume Refinery availability Chemicals availability Oil products sales (million b/d) Chemicals sales (million tonnes) UPSTREAM  Q4-Q4 underlying decline 3%1  Growth from NA LRS, Iraq, Malaysia  40 kboe/d Nigeria sabotage Q4-Q4  95 kboe/d maintenance Q4-Q4 DOWNSTREAM  Q4-Q4 underlying OP volumes lower, Chemicals volumes similar Q1 – Q1 OUTLOOK  Nigeria operating challenges  Production impact:  ADCO licence expiry 155 kboe/d  NAM curtailment 60 kboe/d  Maintenance 50 kboe/d  Increased exploration charges  Increased Upstream DD&A  Reduced refinery availability OPERATIONAL PERFORMANCE + OUTLOOK 1 Excludes Nigeria security , PSC price effect + asset sales
  • 19. Copyright of Royal Dutch Shell plc 30 January, 2014 19 CFFO Asset sales GROUP 12 MONTHS CASH PERFORMANCE $ billion Capex Dividend Buy-backs CASH PERFORMANCE + PAYOUT Sources Uses GEARING AND PAY OUT $ billion % Free cash flow (FCF) Gearing (RHS) Dividend Buyback BUSINESS 12 MONTH CASH PERFORMANCE $ billion Acquisitions Upstream Downstream Sources Uses Sources Uses 30 15 0  2013 ACQUISITION IMPACTS  2014 FCF EXPANSION POTENTIAL
  • 20. Copyright of Royal Dutch Shell plc 30 January, 2014 20 $ billion cumulative Previous outlook set in 2012 for 2012-15: CFFO $175-$200 billion; net capital investment $120-$130 billion @ $80-$100 oil prices Cash flow from operations Net capital investment FINANCIAL PERFORMANCE 2012-2013  CFFO impacted by macro, portfolio + choices + performance  Net capital investment lifted by acquisitions Dividends distributed + buy-backs Previous target framework 2012-15
  • 21. Copyright of Royal Dutch Shell plc 30 January, 2014 21 FINANCIAL FRAMEWORK AND PRIORITIES CASH PERFORMANCE CFFO drives investment + payout INVESTMENT Affordability, profitability, portfolio PAY-OUT Dividend linked to business results BALANCE SHEET 0 – 30% gearing through cycle Priorities for cash 1. Debt service 2. Dividends: growth policy 3. Capital investment: disciplined through cycle growth 4. Return surplus cash: buy-backs CONSERVATIVE BALANCE SHEET UNDERPINS FINANCIAL FRAMEWORK
  • 22. Copyright of Royal Dutch Shell plc 30 January, 2014 22 PORTFOLIO DEVELOPMENT 2013 Acquisition / entry Exit Discovery Final Investment Decision Start-up  Nigeria on-shore asset sales  G/U Phase 2  TNP loop-line  Carmon Creek  AOSP debottlenecking  Basrah Gas Company  Majnoon  Kashagan  North America asset sales  Coulomb North  BC-10 pre-emption  Libra entry  Vicksburg discovery  Zabazaba-4 appraisal  Erha North Ph2  Stones  BC-10 Massa Ph3  BC-10 Phase 2  Repsol LNG  Elba LNG JV  Abadi LNG  Prelude dilution  Browse onshore  Gulf Coast GTL  Wheatstone LNG  Kentish Knock gas discovery  North Rankin Redevelopment  Beryl & Schiehallion  Bab Sour gas  Albania Shpiraq-2  Amal Steam  Poland: retail  Geelong  Italy  Harburg refinery  Pernis/Mongstad swap  Singapore Chemicals  Gulf Coast GTT  Great Lakes GTT Group delivery $8 billion $2 billion 4 discoveries 9 FIDs 7 start-ups UPSTREAM ENGINE INTEGRATED GAS RESOURCES PLAYS DEEP-WATER FUTURE OPPORTUNITIES DOWNSTREAM ENGINE (completed)    
  • 23. Copyright of Royal Dutch Shell plc 30 January, 2014 23 INCREASING SHELL’S MANAGED SALES + TRADING OPTIONS SHELL PORTFOLIO SHELL LNG LEADERSHIP Year end equity liquefaction capacity in mtpa REPSOL LNG ACQUISITION QG-4 Altamira Cove Point Elba Baja Hazira Spain NWSPluto Sakhalin Oman Malaysia + Brunei Nigeria Peru LNG Atlantic LNG Gorgon Repsol portfolio LNG supply Prelude Re-gasification Under construction Shell: Trading flows 2014 Shell directly managed Joint venture marketed total LNG volumes in mtpa 2013 2017 Repsol acquisition (2014+) 2013 >25 mtpa >30 mtpa
  • 24. Copyright of Royal Dutch Shell plc 30 January, 2014 24 $ billion INVESTING FOR LONG TERM GROWTH FUTURE OPPORTUNITIES RESOURCES PLAYS DEEP-WATER INTEGRATED GAS UPSTREAM DOWNSTREAM LONGER TERM GROWTH PRIORITY ENGINES 1 Announced acquisitions (Repsol, Basrah Gas capital injection)  2013 -14 INVESTMENT LIFTED BY ACQUISITIONS  ORGANIC SPENDING REDUCTION 2014 TOTAL CAPITAL INVESTMENT FY 2012 FY 2013 FY 2014E $ billion ORGANIC CAPEX 32 38 ~35 ACQUISITIONS 5 8 2 1 TOTAL CAPITAL INVESTMENT 37 46 37
  • 25. Copyright of Royal Dutch Shell plc 30 January, 2014 25 BEN VAN BEURDEN CHIEF EXECUTIVE OFFICER ROYAL DUTCH SHELL PLC
  • 26. Copyright of Royal Dutch Shell plc 30 January, 2014 26 Deliver new projects  Returns and cash flow  Competitive returns for shareholders  Hard choices on new projects  Increase divestment of non-core assets  Reduce pace of growth investment  Major deep water start-ups in 2014  Integrate 2013 acquisitions  Operational performance and project delivery Improve our financial performance Enhance our capital efficiency 2014 PRIORITIES  CHANGING EMPHASIS IN 2014
  • 27. Copyright of Royal Dutch Shell plc 30 January, 2014 27 QUESTIONS & ANSWERS FOURTH QUARTER 2013 RESULTS
  • 28. Copyright of Royal Dutch Shell plc 30 January, 2014 28 FOURTH QUARTER 2013 RESULTS 30 JANUARY 2014 ROYAL DUTCH SHELL PLC