Slide 1: Third Quarter Results: A Compelling Investment Case
THIRD QUARTER / RESULTS A COMPELLING INVESTMENT CASE Royal Dutch Shell ple October 29, 2020 #MakeTheFuture
Slide 2: Ben van Beurden, Chief Executive Officer
Ben van Beurden CHIEF EXECUTIVE OFFICER Royal Dutch Shell ple QD eval Dutch shall | Cctobor 29,2020 Ladies and gentlemen, welcome and thank you for being with us today. Today we present the third quarter results. And we want to give you an update on our strategic direction, ahead of our Strategy Day
Slide 3: Presentation outline and speakers
Jessica will then lay out our priorities for cash allocation and she will also cover the highlights of our third quarter results. Lastly, | will give you a more detailed update on our businesses and how our strategic direction translates into our portfolio choices and our ability to thrive in the en
Slide 4: Definitions & Cautionary Note
DEFINITIONS & CAUTIONARY NOTE ‘Adjusted Earnings isthe income atibuteble to RDS ple sherholdes for the period, odjusted forthe ctertax eect of ol pice changes on ventory end oriented items. nhs presentation, “earings refers to “Adjusted eomings” ules sted otherwise. Adjusted earings pe shore i ‘calc
Slide 5: A Compelling Investment Case
™ A COMPELLING INVESTMENT CASE UPSTREAM BUSINESS: TRANSITION BUSINESSES: GROWTH BUSINESSES: FUNDING OUR STRATEGY ENABLING OUR STRATEGY THE FUTURE OF ENERGY J Integrated Gas / Chemicals & Products / Marketing /Power / Hydrogen / Biofuels / Focus Upstream-9 core positions 1 $19 to 22 billion Cash cape
Slide 6: Portfolio discipline and shareholder distributions
Now, that portfolio will change over time. We will remain disciplined on capital and will also relentlessly high-grade our portfolio through divestments. Something that will not change, is our focus on targeting AA-equivalent credit metrics through the cycle. Another thing that will not change is ou
Slide 7: Reshaping Shell for the Future of Energy
™ RESHAPING SHELL FOR THE FUTURE OF ENERGY Enabling strategy delivery Simpler, streamlined organisation Competitive, affordable costs / Customerfocused organisation / Reduced layers, simplified ways of working / Competitive unit cost for resourcedriven businesses / Sectoral decarbonisation teams in
Slide 8: Jessica Uhl, Chief Financial Officer
Jessica Uhl CHIEF FINANCIAL OFFICER Royal Dutch Shell ple @Q Royal Dutch Shell | October 29, 2020 Thank you Ben.
Slide 9: Target Shareholder Distributions of 20-30% of CFFO
™ TARGET SHAREHOLDER DISTRIBUTIONS OF 20-30% OF CFFO Clear cash allocation framework Operationalising the framework / Reapportion nearterm $19-22 billion Cash capex: Neartarm|(Cashicapest / 35-40% Upstream business, 35-40% Transition businesses, ~25% Growth businesses / Inorganic capex included in r
Slide 10: Net debt reduction and cash allocation priorities
And once we have reduced our net debt to this level, we target to further increase total shareholder distributions to be, in total, in the range of 20 to 30% of our cash flow from operations, through dividends and share buybacks. Once we have achieved this level of shareholder distributions, additio
Slide 11: Q3 2020 / Strong Cash Flow Generation
™ Q3 2020 / STRONG CASH FLOW GENERATION PROVING FINANCIAL RESILIENCE Q3 2020 average Brent price: $43/bbl Cash flow from operations excluding working capital $9.0 billion / Positive working capital movements of $1.4 billion, CFFO of $10.4 billion eanecthf ORT / Of which $6.7 billion organic free cas
Slide 12: Q3 2020 Financial Highlights: Adjusted Earnings
a Q3 2020 / FINANCIAL HIGHLIGHTS: ADJUSTED EARNINGS Integrated Gas 27 Upstream 0.8 Oil Products 2.0 Chemicals 0.2 Corporate (0.8) Non-controlling interest (0.1) Adjusted Earnings 4.8 Earnings, $ per share 0.59 ROACE (%) 8.1 @Q veya1 Dutch shell | October 29, 2020 0.8 Adjusted Earnings Q3 2019 to Q3
Slide 13: Q3 2020 Financial Highlights: Cash Flow
a Q3 2020 / FINANCIAL HIGHLIGHTS: CASH FLOW CFFO excluding working capital Q3 2019 to Q3 2020 Integrated Gas 42 2.3 $ billion Upstream 4.3 2) ‘4 Oil Products 3.1 o1 @ Chemicals 0.2 03 ° [| Corporate 0.4 0.5 5 6a) Cash flow from operations 12.3 10.4 4 CFFO exel. working capital 12.1 9.0 2 Cash flow f
Slide 14: Competitive Cash Generation / Integrated Business Model
a COMPETITIVE CASH GENERATION / INTEGRATED BUSINESS MODEL DELIVERING VALUE Balanced CFFO excluding working capital Leading CFFO in the sector $ billion $ billion 50 60 50 40 40 30 30 ~ 20 S._ 20 S 10 10 ~ 0 ° 2015 2016 2017 2018 2019 2020 4QR 2015 2016 2017 2018 2019 2020 HI 4QR Hi Downstream Ml Int
Slide 15: Ben van Beurden
en van Beurden CHIEF EXECUTIVE OFFICER Royal Dutch Shell ple Thanks Jessica. 15
Slide 16: Shell's Net-Zero Emissions Ambition
SHELL’S Own operations: Energy products: carbon Remaining customer net-zero emissions intensity in line with 1.5°C emissions: fully mitigated Reduce the emissions from the Reduce the Net Carbon Footprint? of — Work with customers to reduce the manufacture of all our products! to the energy products
Slide 17: Making the Future of Energy
a MAKING THE FUTURE OF ENERGY UPSTREAM BUSINESS: TRANSITION BUSINESSES: GROWTH BUSINESSES: FUNDING OUR STRATEGY ENABLING OUR STRATEGY THE FUTURE OF ENERGY RESOURCES ASSETS MARKETS @Q veya1 Dutch shell | October 29, 2020 So, this is how our strategy translates to each one of our businesses. As you ca
Slide 18: Making the Future of Energy: Business Priorities
| “a MAKING THE FUTURE OF ENERGY UPSTREAM BUSINESS: FUNDING OUR STRATEGY Focus on advantaged core positions to maximise cash delivery and returns Winning with value over volume / Highgraded, differentiated portfolio building on strengths / Capital and exploration spend concentrated on core positions
Slide 19: New business models in power, hydrogen and biofuels
It means establishing new business models in power, in hydrogen and in biofuels. Across these three business types we are building our future. We are building with prudence, yes, and also with confidence and with conviction. | will now cover each business in a bit more detail, starting with Upstream
Slide 20: Upstream Business: A More Focused, Competitive Portfolio
UPSTREAM BUSINESS / A MORE FOCUSED, COMPETITIVE AND RESILIENT PORTFOLIO Cost and capital efficiency TO DELIVER CASH $ perboe ° ao 30% UK HiKazakhstan 8 48% Permian fe) I Gulf of Mexico Oman “4 = Unit operating cost = Unit development costs wh Malaysia gg Mt Brunei CFFO excluding working capital per
Slide 21: Transition Businesses / Chemicals and Refining
| ie TRANSITION BUSINESSES / CHEMICALS AND REFINING DELIVERING INTEGRATED VALUE ; = * A A i Scotford py Rae WPM Rheinland 4 TRADING Resnt product oe. OPTIMISATION WF Norco = Deet Park , PulauBukom Mp el # refineries a * 2004 54 ~ = = & oe 8 fh I Energy and chemicals parks ~ integrated refining and c
Slide 22: Transition Businesses / Integrated Gas
| Me TRANSITION BUSINESSES / INTEGRATED GAS LNG ENABLING DECARBONISATION OF KEY MARKETS AND SECTORS Gas enabling the energy transition Leading position ING available for sale in 2019 (mtpa) / New policy and favourable economics driving coaltogas switching so / Growth of renewables supporting gas in
Slide 23: Market leader in LNG
We already are the market leader in LNG and we have an unmatched LNG supply portfolio and a large, diverse customer base. That gives us a solid competitive advantage which will allow us to grow the value of this business. And our trading and optimisation capabilities in LNG have been built over deca
Slide 24: Growth Businesses / Marketing
™ GROWTH BUSINESSES / MARKETING PLATFORM FOR FURTHER GROWTH Growing a resilient Marketing business We have the scale and are leading in mobility by a distance $ billion % # markets 5 70 140 120 MeDonalds e 60 100 Starbucks Shell 4 a — 80 © © aa Total ~ 50 60 ee Carrefour ® a 40 aa 40 20 2 Rg S—bxorM
Slide 25: Marketing strategy and cross-selling with Power
So, our strategy for Marketing is to use our leading position to grow even further as the demand for mobility and convenience will only grow. But we also intend to make the most of cross-selling opportunities with our Power business. 25
Slide 26: Growth Businesses / Integrated Power
GROWTH BUSINESSES / INTEGRATED POWER PORTFOLIO DELIVERING CUSTOMER CENTRIC ENERGY SOLUTIONS Trading Generation and storage / Decades of experience in power trading and wholesale supply / Enhancing returns through dilution premium and ancing / Significant scale in key markets / System integration e.g
Slide 27: Why Shell can capture power opportunities
Integration in our customer offering, with the ability to cross-sell products and integration across a whole spectrum of power businesses to maximise value. But you may ask: why is Shell the right company to capture these opportunities? | will tell you why. We are not starting from scratch in Power.
Slide 28: Growth Businesses / Hydrogen and Biofuels
a One of the largest blenders and distributors of biofuels Integrated value chain from electron to hydrogen molecule GROWTH BUSINESSES / HYDROGEN AND BIOFUELS CREATING COMMERCIAL OPPORTUNITIES / Investing in advanced biofuels using alternative feedstocks such as forestry, / Around 50 hydrogen retail
Slide 29: A Compelling Investment Case
A COMPELLING INVESTMENT CASE UPSTREAM BUSINESS: TRANSITION BUSINESSES: GROWTH BUSINESSES: FUNDING OUR STRATEGY ENABLING OUR STRATEGY THE FUTURE OF ENERGY J Integrated Gas / Chemicals & Products / Marketing /Power / Hydrogen / Biofuels @Q Royal Dutch Shell | October 29, 2020 22 There are three things
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Slide 31: A Customer-Led Integrated Energy Offering
A CUSTOMER-LED INTEGRATED ENERGY OFFERING Shell offers integrated infers toaret f NORWAY UNITED KINGDOM — GERMANY NETHERLANDS TURKEY JAPAN Solutions fo customers = orn YF Tetospart “Ue Shel Enea Reto H,, Hystogen stations NoordzeeWind 108MW 22 power trading 2B power wading biofuels, to hydrogen, sol
Slide 32: Improved Cash Cover
IMPROVED CASH COVER FROM RESILIENT PORTFOLIO Cash distributions Dividend cover $ billion % aD oan $52 $54 $64 $46 95 300 250 200 150 100 50 a 0 2015 2017 2019 2020 4ar 2015 2017 2019 2020 40R © Organic FCF Il Cash dividend 1 Free cash flow cover ¢ Average Brent es . price per barrel Divestment proce
Slide 33: Q4 2020 Outlook
Ma OUTLOOK/ Q4 2020 OUTLOOK / Asaresult of COVID-19, there continues to be significant uncertainty in the macroeconomic conditions with an expected negative impact on demand for oil, gas and related products. Furthermore, recent global developments and uncertainty in oil supply have caused further v
Slide 34: Q3 2020 Prices and Margins
Q3 2020 / PRICES AND MARGINS Shell oil & gas realisations Industry refining margins Industry chemicals margins $ per barrel $permscf $ per barrel $ per tonne 80 6 8 1000 15 a 800 60 2 4 9 600 40 3 6 400 > 3 20 0 ; 200 3 0 0 4 0 19Q319@4. 2001S «2002-2003 19Q3 «194. 20Q1_--20Q2-—S(20098 19@3'19@4.-20
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