Shell Plc · LSE:SHEL
Shell — Royal Dutch Shell — Investor Day (February 2021)
78 slides from Shell's investor day presentation, Feb 11, 2021
Slide 1: Shell Strategy Day 2021
SHELL STRATEGY DAY 2021 Royal Dutch Shell ple February 11, 2021 #PoweringProgress
Slide 2: Powering Progress: Our Strategy
POWERING PROGRESS OUR STRATEGY SHELL STRATEGY DAY 2021
Slide 3: The Shell Investment Case
THE SHELL INVESTMENT CASE GENERATING SHAREHOLDER VALUE Growing value through a dynamic portfolio and disciplined capital allocation POWERING PROGRESS Our strategy to accelerate the transition to netzero emissions, purposefully and profitably RESPECTING NATURE Protecting the environment, reducing was
Slide 4: Delivering the Strategy
DELIVERING THE STRATEGY OUR VISION FOR THE FUTURE OF ENERGY #POWERINGPROGRESS GROWTH PILLAR: TRANSITION PILLAR: UPSTREAM PILLAR: THE FUTURE OF ENERGY ENABLING OUR STRATEGY FUNDING OUR STRATEGY MARKETS ASSETS RESOURCES Enhanced value delivery through trading and optimisation WwW) Royal Dutch Shell |
Slide 5: Capital Allocation: Our Plan
CAPITAL ALLOCATION OUR PLAN SHELL STRATEGY DAY 2021
Slide 6: Delivering the Strategy - Driving Growth and Returns
CAPITAL ALLOCATION DELIVERING THE STRATEGY - DRIVING GROWTH AND RETURNS ATTRACT CAPITAL Competitive shareholder returns Balance sheet strength MANAGE RISK Resilient portfolio Strength and diversity of cash flow GROW VALUE Advanced products and customer solutions Grow cash flow Growing value through
Slide 7: Disciplined Approach Across Levels
CAPITAL ALLOCATION DISCIPLINED APPROACH ACROSS LEVELS Maximise value = Ensure balance sheet strength = Reward shareholders = Invest in growth in a measured and disciplined way Invest in the most competitive projects = Pursue projects with sector Maintain a balanced leading returns PORTFOLIO and robu
Slide 8: Target Shareholder Distributions of 20-30% of CFFO
CAPITAL ALLOCATION TARGET SHAREHOLDER DISTRIBUTIONS Enterprise level approach &) OF 20-30% OF CFFO Clear capital allocation framework Near-term Cash capex Ordinary progressive dividend AA credit metrics through the cycle Additional shareholder distributions Ath Capex growth PRIORITY Continued balanc
Slide 9: Balanced Approach to Investment Decisions Across Pillars
CAPITAL ALLOCATION BALANCED APPROACH TO INVESTMENT Portfolio level approach & DECISIONS ACROSS PILLARS GROWTH PILLAR: TRANSITION PILLAR: UPSTREAM PILLAR: THE FUTURE OF ENERGY | ENABLING OUR ENERGY FUNDING OUR STRATEGY Business models Process technologies Asset management INNOVATION Customer solution
Slide 10: Well-Positioned for the Future of Energy Through Differentiated Strengths
CAPITAL ALLOCATION WELL-POSITIONED FOR THE FUTURE OF ENERGY Portfolio level approach & THROUGH DIFFERENTIATED STRENGTHS DIFFERENTIATED STRENGTHS VALUE DRIVERS SHIFTING WITH STRATEGY hea Advantaged assets Advanced products = Customer insight and scale Resource positions Market positions = Sectoral de
Slide 11: Capex Evolving Towards Growth Pillar
CAPITAL ALLOCATION CAPEX EVOLVING TOWARDS GROWTH PILLAR Portfolio level approach & SUSTAINING OUR STRATEGY - Net debt above $65 billion Coen ppor Cua Lier Cash Priority: Strengthen balance sheet and maintain ~4% dividend per share growth annually, subject to Board approval = Cash capex of $19-22 bil
Slide 12: Consistent Application of Investment Decision-Making at Project Level
CAPITAL ALLOCATION CONSISTENT APPLICATION OF INVESTMENT Project level approach 6) DECISION-MAKING AT THE PROJECT LEVEL VALUE-ACCRETIVE INVESTMENTS = Most competitive opportunities = Returns in excess of cost of capital = Integrated value COMPETITIVE SECTORLEADING RESILIENT RETURNS BALANCED CASH FLOW
Slide 13: Differentiated Return Expectations by Business
CAPITAL ALLOCATION DIFFERENTIATED RETURN EXPECTATIONS Project level approach 6) BY BUSINESS GROWTH PILLAR: TRANSITION PILLAR: UPSTREAM PILLAR: THE FUTURE OF ENERGY ENABLING OUR STRATEGY FUNDING OUR STRATEG' Marketing Renewables and Integrated Gas Chemicals Upstream Energy Solutions and Products TYPI
Slide 14: Diversified Cash Flow Evolves with Shift in Business Models
CASH POTENTIAL DIVERSIFIED CASH FLOW EVOLVES WITH SHIFT IN BUSINESS MODELS Track record of sector-leading CFFO Future-proofing our cash flows $ billion 60 50 2015 2016 2017 2018 2019 2020 Historical Net debt Beyond 2025 5-year average >$65 billion Peerrange = Shell Wi Upstream Ml Transition fl Growt
Slide 15: Diversified and Resilient Cash Generation Across the Cycle
CASH POTENTIAL DIVERSIFIED AND RESILIENT CASH GENERATION ACROSS THE CYCLE $ billion $55 50 40 30 20 Historical 5-year average $50 Medium term $60 Medium term = Medium-term cash flow sensitivities per $10/bbl Brent movement Upstream: CFFO impact $4 billion Integrated Gas: CFFO impact $2 billion = Cas
Slide 16: Carbon: Our Plan
CARBON OUR PLAN SHELL STRATEGY DAY 2021
Slide 17: Our Carbon Targets
CARBON OUR CARBON TARGETS OUR CLIMATE TARGET NET ZERO BY 2050 FROM 1.7 GTPA TO ZERO Netzero emissions energy business by 2050 Total carbon emissions from energy sold including all emissions (Scopes 1, 2 and 3) peaked in 2018 at around 1.7 Gtpa and will in step with society be brought down to 0 by 20
Slide 18: Intensive Customer Collaboration Sector by Sector
CARBON INTENSIVE CUSTOMER COLLABORATION SECTOR BY SECTOR Getting the energy system on a path to net zero will require coordinated action between energy providers, energy users and governments, working together over the next decades to define rapid, realistic, decarbonisation pathways, sector by sect
Slide 19: Examples of Energy Transition Milestones by 2030
CARBON EXAMPLES OF ENERGY TRANSITION MILESTONES BY 2030 = a) & Operational efficiency! = Eliminating routine flaring = Maintaining methane emissions intensity <0.2% (2025) Natural gas shift = Oil production peaked in 2019, expected to decline 1-2% per annum ® No new frontier exploration entries anti
Slide 20: Actions to Support Delivery Through Accountability
CARBON ACTIONS TO SUPPORT DELIVERY THROUGH ACCOUNTABILITY Governance & transparency Accountability Present Energy Transition plan for advisory shareholder vote every 3 years from 2021 onwards. Annual advisory shareholder vote on progress against the plan. Aligning with external standards Work with t
Slide 21: Growth Pillar: Delivering Through Three Pillars
GROWTH PILLAR DELIVERING THROUGH THREE PILLARS SHELL STRATEGY DAY 2021
Slide 22: Marketing: Performing Strongly and a Platform for Future Growth
MARKETING PERFORMING STRONGLY AND A PLATFORM FOR FUTURE GROWTH Strategic delivery on track; resilient growth through cycle Differentiated offerings contributing >50% Adjusted Earnings ___ % of Shell 2020 gross margin contribution in % $ billion ‘Adjusted Earnings v 100 100 6 ° 80 Main-grade Mainstre
Slide 23: Profitably Decarbonising with Our Customers
MARKETING PROFITABLY DECARBONISING WITH OUR CUSTOMERS AS WE ARE DELIVERING ON 2025 GROWTH AMBITIONS 2020 delivery ~30 million ~46,000 1/9 on average >12,000 >60,000 WwW) Royal Dutch Shell | February 11, 2021 2025 targets 40 million Customers served at retail service stations daily 55,000 Shel-brande
Slide 24: Scale and Customer Access That Others Aspire to Build
MARKETING WE ALREADY HAVE THE SCALE AND CUSTOMER ACCESS THAT OTHERS ASPIRE TO BUILD Most valuable brand in the industry $ billion BP Starbucks 21.4 38.4 o-e Total McDonalds 18.1 33.8 « Differentiated customer propositions = Highest brand share preference WwW) Royal Dutch Shell | February 11, 2021 42
Slide 25: Mobility Offer of the Future
r MARKETING - MOBILITY OFFER OF THE FUTURE Shell Hydrogen WE WILL PROFITABLY EVOLVE OUR OFFER, INCREASE OUR —— CUSTOMER SPEND AND HELP TO DECARBONISE MOBILITY - Convenience retail & Food kiosk Shell Recharge >30k —up10 100% charge points. carbon emissions |[@ at Shell Recharge reduction for EV by 20
Slide 26: Foundation to Grow Low-Carbon Fuels Profitably
MARKETING SHELL HAS THE FOUNDATION TO GROW LOW-CARBON FUELS PROFITABLY RENEWABLE NATURAL GAS FOR ROAD TRANSPORT Took FID on two RNG production opportunities and Shell's first R-CNG dispensary in California and signed two agreements in Los Angeles for the supply of RCNG AVIATION Selling sustainable a
Slide 27: Integrated Power Portfolio - Customer-Centric Energy Solutions
RENEWABLES AND ENERGY SOLUTIONS INTEGRATED POWER PORTFOLIO - DELIVERING CUSTOMER-CENTRIC ENERGY SOLUTIONS = Anew Shell business established in 2016 = More than 650 professionals, around a third being external hires with experience across the power sector, and more than 3,400 staff in Shell portfolio
Slide 28: A Customer-First Strategy - Integrated Clean Energy Systems
RENEWABLES AND ENERGY SOLUTIONS A CUSTOMER-FIRST STRATEGY - INTEGRATED CLEAN ENERGY SYSTEMS DRIVE HIGHER RETURNS Simplifying customer decarbonisation journeys by offering integrated energy solutions Leveraging Shell’s core advantages in power: = Existing global customer base with significant ambitio
Slide 29: Shell's Clean Power-as-a-Service Offer
RENEWABLES AND ENERGY SOLUTIONS SHELL’S CLEAN POWER-AS-A-SERVICE OFFER - SIMPLIFYING THE NET-ZERO JOURNEYS OF OUR CUSTOMERS Current market FOOTPRINT DIGITAL Power-as-a-Service Customers under pressure to decarbonise in an increasingly complex energy market ei oniconiinevetomarcsnetearcteconenicella
Slide 30: Creating a Clean Hydrogen Market
RENEWABLES AND ENERGY SOLUTIONS CREATING A CLEAN HYDROGEN MARKET TO SERVE INDUSTRY AND HEAVY-DUTY TRANSPORT Clean hydrogen! global demand projections Our hydrogen strategy Million tonnes per annum = Orchestrate integrated hydrogen hubs to serve industry and heavy-duty 696 transport, anchored on Shel
Slide 31: Orchestrating Integrated Hydrogen Hubs
RENEWABLES AND ENERGY SOLUTIONS CREATING A CLEAN HYDROGEN MARKET BY ORCHESTRATING INTEGRATED HYDROGEN HUBS Timeline Taking a phased approach Proof points! Step 0 - Building capability Building on our expertise of handling molecules, established a funnel of clean hydrogen projects and a leading hydro
Slide 32: Integrated Clean Energy Systems Driving Higher Returns
RENEWABLES AND ENERGY SOLUTIONS INTEGRATED CLEAN ENERGY SYSTEMS DRIVING HIGHER RETURNS = The energy system increasingly needs system-wide optimisation and the integration of flexible assets including the optimisation of customers’ own assets ® Shell's capabilities to match supply and demand for all
Slide 33: Integrated Clean Energy Systems - Rotterdam Example
RENEWABLES AND ENERGY SOLUTIONS INTEGRATED CLEAN ENERGY SYSTEMS - ROTTERDAM EXAMPLE = Customercentric approach = Digitally-enabled product platforms = Customerdemandbacked asset development Example: Rotterdam Clean Energy Hub = Our offtake agreement from the Hollandse Kust (Noord) wind farm (759 MW
Slide 34: Integrated Clean Energy Systems Enabled by Digital Capabilities
RENEWABLES AND ENERGY SOLUTIONS INTEGRATED CLEAN ENERGY SYSJEMS - ENABLED BY DIGITAL CAPABILITYES = Since 2015, the number of internetconnected devices has wx quadrupled = In parallel, the growth of cloudbased technology has enabled more flexible processing and accelerated software development = The
Slide 35: Power-as-a-Service Strategy Targeting Greater Than 10% Unlevered IRR
RENEWABLES AND ENERGY SOLUTIONS OUR POWER-AS-A-SERVICE STRATEGY TARGETING GREATER THAN 10% UNLEVERED IRR SHELL’S BASE SHELL’S DIGITAL A COMPETITIVE, BUSINESS MODELS + INTEGRATION APPROACH == __HIGHER-RETURN BUSINESS Strong fundamentals Creating higher margins Business-, digital and energy system int
Slide 36: Creating Value Through Customer Solutions: ERM Power
RENEWABLES AND ENERGY SOLUTIONS CREATING VALUE THROUGH CUSTOMER SOLUTIONS ERM POWER - AUSTRALIA | = Acquired in Q3 2019 = Secondlargest commercial and industrial retailer of electricity in Australia (more than 20% market share) = Established customer solutions platform across generation, trading and
Slide 37: Integrated Power Strategy - Regional Leadership 1/2
RENEWABLES AND ENERGY SOLUTIONS INTEGRATED POWER STRATEGY - OPERATING MODEL FOCUSED ON REGIONAL LEADERSHIP 1/2 United States = One of the top three power wholesale traders in North America Energy solutions = Growing portfolio of commercial and industrial customers and PPAs with customers including W
Slide 38: Integrated Power Strategy - Regional Leadership 2/2
RENEWABLES AND ENERGY SOLUTIONS INTEGRATED POWER STRATEGY - OPERATING MODEL FOCUSED ON REGIONAL LEADERSHIP 2/2 Australia = A fully integrated position built through a series of acquisitions and leveraging the Shell brand = Significant synergies with our natural gas business Energy solutions = Achiev
Slide 39: Carbon-Neutral Solutions Enabled by Nature-Based Projects
RENEWABLES AND ENERGY SOLUTIONS A LEADING PROVIDER OF CARBON-NEUTRAL SOLUTIONS ENABLED BY NATURE-BASED PROJECTS A portfolio of carbon credits to meet current and future customer demand Robust screening process We maintain a rigorous internal screening process to ensure the projects we invest in and
Slide 40: Developing CCS to Accelerate Decarbonisation
RENEWABLES AND ENERGY SOLUTIONS DEVELOPING CCS TO ACCELERATE DECARBONISATION Shell is working on CCS opportunities that enable: , J Norway Canada Netherlands Australia UK Industrial Cluster Announced CCS projects I Operational or postfD projects I PreflD projects Bioenergy with CCS Decarbonising sec
Slide 41: Transition Pillar: Delivering Through Three Pillars
TRANSITION PILLAR DELIVERING THROUGH THREE PILLARS SHELL STRATEGY DAY 2021
Slide 42: LNG Demand to Grow as Gas Provides More and Cleaner Energy
INTEGRATED GAS LNG DEMAND TO GROW AS GAS PROVIDES MORE AND CLEANER ENERGY LNG needed to connect natural gas Reduce CO, and improve air quality supply and demand growth Estimated LNG trade voli in 2040, million t = Natural gas emits between 45% and 55% less GHG than coal when used —- a al ae to gener
Slide 43: World Leader in LNG: Resilient Cash Generation
INTEGRATED GAS WORLD LEADER IN LNG: RESILIENT CASH GENERATION INTO THE FUTURE Lead the market Run the business Grow the business = Leverage world-class innovation, flexibility and LNG = Unmatched portfolio optionality and resilience; = Selective investment in competitive LNG assets, trading capabili
Slide 44: Pathways to Net-Zero for Natural Gas
INTEGRATED GAS PATHWAYS TO NET-ZERO FOR NATURAL GAS Help customers offset emissions through carbon-neutral LNG = Delivered the first 7 carbonneutral LNG cargoes to customers in Asia = Enough to power nearly | million homes for a year = Gas sold to commercial and industrial customers and used to make
Slide 45: Gas Continues to Provide More and Cleaner Energy
INTEGRATED GAS GAS CONTINUES TO PROVIDE MORE AND CLEANER ENERGY Reduce CO, and improve air quality Reduce methane emissions = Natural gas emits between 45% and 55% less GHG than coal when = Lead a coalition of companies used to generate electricity and less than one-tenth of the air pollutants and c
Slide 46: Global LNG - More Markets, Growing Demand
INTEGRATED GAS GLOBAL LNG - MORE MARKETS, GROWING DEMAND LNG DEMAND EXPECTED TO GROW, UP TO 4% PER YEAR UNTIL 2040 LNG needed to connect natural gas supply and demand growth Estimated LNG trade volume in 2040, million tonnes WwW) Royal Dutch Shell | February 11, 2021 e@ Demand e@ Supply Sources: She
Slide 47: Extend Our Lead in a Growing LNG Market
INTEGRATED GAS EXTEND OUR LEAD IN A GROWING LNG MARKET Leverage world-class trading portfolio = Supplied 70 mtpa of LNG to customers in 2020. Leading supplier to China = Diverse portfolio with varying contract duration, flexibility and indexation = 37 countries supplied from global portfolio with a
Slide 48: Grow Our Unmatched LNG Supply Portfolio
INTEGRATED GAS GROW OUR UNMATCHED LNG SUPPLY PORTFOLIO Unit technical cost $ per MMBtu 8 2015 2016 = 2017 2018 2019 += 2020 Competitive funnel of opportunities = Selective investment in competitive LNG assets; including backfill and expansion options = Unit technical cost reduced by around 40% to $4
Slide 49: Integrated Energy Solutions in Queensland, Australia
INTEGRATED GAS INTEGRATED ENERGY SOLUTIONS IN QUEENSLAND, AUSTRALIA LNG export & domestic gas sales serve local and global customers ... 7.8 MT QGC sold globally 2.5 BCM domestic sales >>> 0.5 BCM arrow eiprlelic@Ge ... with power retailing established and a solid customer base ... em 17 TWh annual
Slide 50: Creating an Integrated Gas & Power Value Chain in India
INTEGRATED GAS CREATING AN INTEGRATED GAS & POWER VALUE CHAIN IN INDIA = Transforming a traditional LNG regas business into a fully owned and integrated Shell value chain = Supporting India to increase the share of natural gas in its primary energy consumption from 6% towards its aspired target of 1
Slide 51: Low-Carbon Solutions Through Integrated Energy and Chemicals Parks
CHEMICALS AND PRODUCTS DELIVERING LOW-CARBON SOLUTIONS THROUGH INTEGRATED ENERGY AND CHEMICALS PARKS Transition to 6 core Energy and Chemicals Parks = Delivering synergies through integrating Refining and Chemicals, bringing customers and assets together = Expanding to low-carbon product offerings W
Slide 52: Growing Leadership in Performance Chemicals
CHEMICALS AND PRODUCTS GROWING LEADERSHIP IN PERFORMANCE CHEMICALS Chemicals enable everyday life and decarbonisation of society etl, BE Energy savers Care Save energy use and help Protecting, caring reduce CO, emissions for and healing us Connecting us In the home Connect us all and help Help make
Slide 53: Transforming Our Assets for the Customer of the Future
CHEMICALS AND PRODUCTS TRANSFORMING OUR ASSETS FOR THE CUSTOMER OF THE FUTURE Reducing fuel production at Energy and Chemicals Parks mtpa I Base oils and bitumen © Chemicals i Fuels 2020 2030 Increase performance chemicals at a higher margin mtpa Circular chemicals I Performance chemicals I Intermed
Slide 54: Upstream Pillar: Delivering Through Three Pillars
UPSTREAM PILLAR DELIVERING THROUGH THREE PILLARS SHELL STRATEGY DAY 2021
Slide 55: Upstream: Delivering Today's Energy While Funding Tomorrow's
UPSTREAM DELIVERING THE ENERGY OF TODAY WHILE FUNDING THE ENERGY OF TOMORROW Uk Wi Kazakhstan I Permian Il Gulf of Mexico Oman BE Nigeria Molaysio jg Ml Brunei Wi Brazil I Core positions WwW) Royal Dutch Shell | February 11, 2021 SUSTAINING CASH DELIVERY INTO THE 2030s Focusing the portfolio = Prior
Slide 56: Upstream: Operating Responsibly, Delivering Competitively
UPSTREAM DELIVERING THE ENERGY OF TODAY WHILE FUNDING THE ENERGY OF TOMORROW Operating responsibly = Actively reducing GHG emissions from our operations = Ontrack to eliminate routine flaring by 2030. Achieved more than 60% reduction since 2016 = Maintaining methane emissions intensity <0.2% = Reduc
Slide 57: Performance Improvement
UPSTREAM PERFORMANCE IMPROVEMENT Unit Development Cost Gyparlien 15 a } . | (e) 2015 2016 2017 2018 2019 2020 = UDC reduced by more than 50% since 2015 = Ambition to further reduce UDC by ~10% by 2025 through simplification, standardisation, and replication across the portfolio WwW) Royal Dutch Shel
Slide 58: Operational Response and Portfolio Options for Onshore Oil in Nigeria
UPSTREAM ACTIVELY REVIEWING OUR OPERATIONAL RESPONSE AND PORTFOLIO OPTION FOR ONSHORE OIL IN NIGERIA = Onshore footprint reduced by 50% since 2010 = A focused operational response by SPDC has resulted in notable improvements on spills in 2020 = Total volume spilled is the lowest recorded since 2011
Slide 59: Capital Allocation: Break-out
CAPITAL ALLOCATION BREAK-OUT SHELL STRATEGY DAY 2021
Slide 60: Dynamic Capital Allocation at the Portfolio Level
CAPITAL ALLOCATION DYNAMIC CAPITAL ALLOCATION Portfolio level approach C) AT THE PORTFOLIO LEVEL 7—_——~_ Explore scenarios oo = Pace of energy transition 9 = GDP growth, commodity Appraise/Adjust supply and demand = Measure progress = Apply Ecuiings Portfolio allocation objectives / | | | Apply stra
Slide 61: Disciplined Capital Allocation at the Project Level
DISCIPLINED CAPITAL ALLOCATION Project level approach CAPITAL ALLOCATION © AT THE PROJECT LEVEL PORTFOLIO CAPITAL ALLOCATION Renewables and Integrated Chemicals Marketing Energy Solutions Gas and Products. Upstream IRR hurdle rates 15% >10% 12% 12% 18% Integrated Power \ ) Y Net present value Capita
Slide 62: Upstream Focused on Core Positions: Whale Development
CAPITAL ALLOCATION UPSTREAM FOCUSED ON CORE POSITIONS WHALE DEVELOPMENT GULF OF MEXICO = Operated by Shell (60%) = Discovery in 2017, FID in 2021 = Production facility capacity of 100 kboe/d and 200 MMScf/d = Water depth of ~8000 feet = GHG intensity <0.065 tCO,eq/tHC WwW) Royal Dutch Shell | Februa
Slide 63: Highly Profitable Global Retail Portfolio
CAPITAL ALLOCATION HIGHLY PROFITABLE GLOBAL RETAIL PORTFOLIO Project level approach 6) Strong financial performance through dynamic Global investment programme capital allocation and consistent project delivery to execute strategic priorities Actual cash returns! against original investment plan New
Slide 64: Optimising Returns in Integrated Power: Borssele III & IV
CAPITAL ALLOCATION OPTIMISING RETURNS IN INTEGRATED POWER BORSSELE III & IV OFFSHORE WIND FARM Blauwwind = Operated by Blauwwind Consortium, Shell share 20% = Reached first power in 2020 = 732 MW capacity wind farm in the Netherlands WwW) Royal Dutch Shell | February 11, 2021 Project level approach
Slide 65: Powering Progress: Our Strategy
POWERING PROGRESS OUR STRATEGY SHELL STRATEGY DAY 2021
Slide 66: The Shell Investment Case
THE SHELL INVESTMENT CASE GENERATING SHAREHOLDER VALUE Growing value through a dynamic portfolio and disciplined capital allocation POWERING PROGRESS Our strategy to accelerate the transition to netzero emissions, purposefully and profitably RESPECTING NATURE Protecting the environment, reducing was
Slide 67: Slide 67
Slide 68: Pace of Digital Adoption Is Accelerating
PACE OF DIGITAL ADOPTION IS ACCELERATING AT AN ALMOST EXPONENTIAL RATE DIGITALISATION AND AI TO DRIVE EFFICIENCY IN OUR EXISTING BUSINESSES Strong foundation, capabilities and collaborations with industry leaders to accelerate the value from digitalisation: L3trn ~350 INDUSTRY COLLABORATION Staff in
Slide 69: Shell Energy Transformation Scenarios: All Three Pathways Decarbonise
SHELL ENERGY TRANSFORMATION SCENARIOS ALL THREE PATHWAYS DECARBONISE - THE ISSUE IS SPEED 2100 GLOBAL AVERAGE SURFACE TEMPERATURE RISE VS. 1850-1900 15°C en, Sky 1.5.7 23°C / S\Waves i Vasc land H Pislan Is \ 1 CUMULATIVE SINKS USING TECHNOLOGY AND NATURE TO 2100 Carbon capture Human-induced and sto
Slide 70: Energy Demand Grows and the Energy System Decarbonises
SHELL ENERGY TRANSFORMATION SCENARIOS ENERGY DEMAND GROWS AND THE ENERGY SYSTEM DECARBONISES - THE ISSUE IS SPEED Energy demand rises, with Sky 1.5 levelling off CO, emissions decline towards net-zero, but the late-century pace varies Total primary energy CO2 emissions EJ/year Gt CO2/year 1600 50 14
Slide 71: Action Accelerators
SHELL ENERGY TRANSFORMATION SCENARIOS ACTION ACCELERATORS Sky 1.5 Scenario Total final consumption of energy + carbon removals EJ/year (final energy) 1200 1000 800 600 400 (0) 2000 2020 2040 Electricity consumption predominantly from renewable sources WwW) Royal Dutch Shell | February 11, 2021 P Imp
Slide 72: Strategy Day 2021 Disclosure Overview (1/3)
STRATEGY DAY 2021 DISCLOSURE OVERVIEW (1/3) GROWTH PILLAR: TRANSITION PILLAR: UPSTREAM PILLAR: THE FUTURE OF ENERGY ENABLING OUR STRATEGY FUNDING OUR STRATEGY ~$3 billion $23 billion ~$4 billion $45 billion ~$8 billion Net debt>$65 bilion $19-22 billion ~25% 35.40% 35.40% Cash capex Net debt <$65 bi
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Slide 74: Strategy Day 2021 Disclosure Overview (3/3)
STRATEGY DAY 2021 DISCLOSURE OVERVIEW(3/3) Integrated Gas Opex reduction of ~20% by 2022 vs. 2019 >20% share in LNG bunkering sales by 2030 >7 mtpa of new LNG capacity onstream by the middle of the decade Develop 3 mtpa of new LNG markets by 2025 Project competitiveness: UTC <$5/MMBtu WwW) Royal Dut
Slide 75: Thank you for your interest in Royal Dutch Shell plc
Thank you for your interest in Royal Dutch Shell ple. Please understand that an investment in Royal Dutch Shell ple securities carries with it the risk that you could sustain losses as a result of your investment. Therefore, an investment in Royal Dutch Shell ple securities may not be appropriate fo
Slide 76: Cautionary Note
CAUTIONARY NOTE This presentation contains the following forwardlooking NonGAAP measures: Adjusted Earnings, Cosh capital expenditure, Underlying operating expenses, and Divestment proceeds. We ore unable to provide a reconciliation ofthe above forwardlooking NonGAAP measures to the most comparable
Slide 77: Definitions
DEFINITIONS Adjusted Earnings Income attributable to RDS ple shareholders for the period, adjusted for the after-tax effect of oil price changes on inventory and for identified items. Average project IRRs The capital weighted average project forward-looking unlevered expected rate of return where NP
Slide 78: Abbreviations
ABBREVIATIONS BEP Breakeven price Capex Capital expenditure Ces Carbon capture and storage CFFO excluding WC Cash flow from operations excluding working capital FID Final Investment Decision GHG Greenhouse gas emissions GTL Gastoliquids IRR Internal rate of return LNG liquefied natural gas NCF Net C