Shell Plc · LSE:SHEL
Shell — Royal Dutch Shell — Shareholder Meeting (May 2017)
34 slides from Shell's shareholder meeting presentation, May 23, 2017
Slide 1: Annual General Meeting 2017
Annual General Meeting 2017 Royal Dutch Shell plc May 23, 2017 #makethefuture Royal Dutch Shell May 23, 2017
Slide 2: Chad Holliday, Chairman
Chad Holliday Chairman Royal Dutch Shell Royal Dutch Shell May 23, 2017
Slide 3: Definitions and Cautionary note
Definitions and This presentation contains data from Shell’s New Lens Scenarios. The New Lens Scenarios are a part of an ongoing process used in Shell for 40 years to challenge executives’ perspectives on the future business environment. We base them on plausible assumptions and quantifications, and
Slide 4: Energy challenge
Energy challenge “Energy is the golden thread that connects economic growth, social equity, and environmental sustainability” Ban Ki-Moon Former UN Secretary General, April 2012 Royal Dutch Shell May 23, 2017
Slide 5: Energy challenge
Energy challenge “Energy is the golden thread that connects economic growth, social equity, and environmental sustainability” Ban Ki-Moon Former UN Secretary General, April 2012 “The ability to question rather than cling to old beliefs is vital for tackling the energy challenge” Ben van Beurden CEO
Slide 6: Energy challenge
Energy challenge Growing population Global population will increase from around 7.4 billion today to nearly 10 billion by 2050, with 67% living in cities Rising demand Global energy demand will likely be almost 60% higher in 2060 than today, with 2 billion vehicles on the road (800 million today) On
Slide 7: Shell's strategy
Shell’s strategy World-class investment case FCF + ROCE growth Leader: value Conservative financial + influence management Reducing our Shared carbon value with intensity society Royal Dutch Shell May 23, 2017 7
Slide 8: Shell's reporting
Leading in transparency Shell’s reporting Sustainability report available online at: http://reports.shell.com/sustainability-report/2016/ Infographic on Shell’s transition to cleaner energy available online at: http://www.shell.com/investors/environmental-social-and-governance/sri-news-presentations
Slide 9: United Nations Sustainable Development goals
United Nations Sustainable Development goals Royal Dutch Shell May 23, 2017
Slide 10: Examples of Shell contributing to the Sustainable Development goals
Examples of Shell z contributing to the Sustainable Development goals Access to energy programme: Batak tribe Livewire: Cherish Optical Center, Nigeria Goal 13: Climate Action New lens scenarios: Surat city study Quest CCS, Canada Royal Dutch Shell May 23, 2017
Slide 11: Energy transition
Energy transition LNG express station, Rotterdam H2 mobility, Wuppertal, Germany IH2 advanced biofuels, Bangalore Developing our gas business New energies Low-carbon R+D Royal Dutch Shell May 23, 2017
Slide 12: Summary
Summary World-class investment case FCF + ROCE growth Leader: value Conservative financial + influence management Reducing our Shared carbon value with intensity society Royal Dutch Shell May 23, 2017 12
Slide 13: Ben van Beurden, Chief Executive Officer
Ben van Beurden Chief Executive Officer Royal Dutch Shell Royal Dutch Shell May 23, 2017
Slide 14: Summary
Summary Actively re-shaping Shell Shell + BG completed February 2016 World-class Integrated BG investment case FCF/share + ROCE growth Transformation and reshape of Shell in progress Leader: value Conservative financial Divestment momentum + influence management Reducing our Shared carbo
Slide 15: Key messages – Momentum of delivery
Key messages – RE-SHAPING PORTFOLIO IMPROVING Momentum of SHELL PRIORITIES RESILIENCE delivery Create a world-class Cash engines Pulling levers to manage investment case financial framework today’s free cash flow Grow free cash flow per Re-set our costs Growth priorities share, higher
Slide 16: Cash flow priorities 2016-18
Manage down-cycle Cash flow 1 2 3 priorities 2016-18 Priorities Buybacks Debt reduction Dividends for cash & capital investment Powerful levers to underpin Reduce capital Reduce Deliver new Divestments financial framework investment operating costs projects Royal Dutch Shell May 23, 2017 16
Slide 17: Earnings and cash flow momentum
Q1 2017 Earnings and $ billion $ billion cash flow momentum Strong cash flow momentum continued from 2016 into Earnings 2017 Cash flow from operations excluding working capital Cash flow from operations excluding working capital – 4-quarters rolling (RHS) Earnings on CCS basis, excluding identified
Slide 18: HSSE Performance
HSSE Goal Zero on safety Spills - operational Performance Injuries – TRCF/million working hours million working hours Volume in thousand tonnes Number of spills TRCF Working hours (RHS) Volume Number Energy intensity - refineries Process safety Energy Intensity Index (EEITM) Number of incidents HS
Slide 19: Netherlands Gas
Groningen earthquakes 2017 progress: Netherlands Gas Damage claims handling now managed by “Nationaal Coordinator Groningen”. NAM is working hard to ensure safe gas production, and to mitigate the impacts of gas production. Government decisions Damage repair in Westeremden Current cap: 24 bcm
Slide 20: Emissions
Emissions Shell Flaring performance Million tonnes hydrocarbon flared 2015 endorsed the World Bank’s 4 -34% Initiative to Reduce Global Gas Flaring "Zero Routine Flaring by 2030“ 3 Start-up gas capturing at Majnoon, Iraq and gas reinjection in Malaysia 2 1 0 '07 '08 '09 '10 '11 '12 '13 '14 '15
Slide 21: Shareholder resolutions
Shareholder 2015 “Aiming For A” 2016 “Follow-this.org” 2017 “Follow-this.org” resolutions “Strategic resilience for “Shell will become a renewable “Shell will set targets to reduce 2035 and beyond” energy company” scope 1, 2 + 3 GHG emissions” Supported by Board + Not considered in best interest
Slide 22: A global emissions snapshot (estimated 2015)
A global Greenhouse gas emission sources Primary energy sources emissions snapshot (estimated 2015) 2015 2015 Residential, services and others Energy source: Transport Gas Nuclear Industry Oil Solar Livestock, agriculture and land use Coal Wind Total emissions: 52 GTCO2e Electricity and heat product
Slide 23: Plausible energy mix in an emerging net-zero emissions world
Plausible energy mix in an emerging 2015 net-zero emissions world, Emerging towards the end Net-Zero of the century Emissions World Energy source: Gas Nuclear With Carbon Capture and Storage Oil Solar Energy use will roughly double Fossil Coal Wind Bioenergy Other Assumes 50% electrification of end
Slide 24: Balancing emissions: Net-Zero
Balancing emissions Net-Zero Remaining Carbon use and GHG emissions sequestration Emissions from fossil fuels (CCS, forestry, etc.) Types of carbon removal (balancing): Carbon use (e.g. bitumen on Geological storage (e.g. Land use change (e.g. roads) industrial CCS in Canada) reforestation projects)
Slide 25: Portfolio resilience to energy transition
Portfolio IEA ‘450’ scenario Examples of resilience in strategic themes resilience to Global energy demand, million boe per day Oil products: By 2025, significantly increase low-emission energy transition Other renewables fuels Shell offers to customers Conventional oil and gas: Nuclear Drive for to
Slide 26: Oil Products: Retail's ambitions for 2025
Retail’s 5 ambitions for 2025 Oil Products 1 2 3 4 5 50% 20% LOWER EVERY 100% CARBON CUSTOMER Increase margin Fuels margin from Reduce carbon Treated like a Sites committed to share from low-emission intensity of our guest on site & in local communities convenience retail energy solutions retail out
Slide 27: New energies strategy
New energies Advanced Biofuels Hydrogen strategy Emerging strategy Renewable Power Customer Solutions Opportunity dependent Aim to grow investment to up to $1 bln by 2020 Royal Dutch Shell May 23, 2017 27
Slide 28: Dividend + share price record
Dividend + share Dividend declared Share price - 2016 till now price record $ billion 1/1/2016 = 100% 16 160% 150% 12 140% 130% 8 120% 110% 4 100% 90% 0 80% 2010 2011 2012 2013 2014 2015 2016 Jan Jan Jul Oct Apr Jun Apr Mar Feb Dec Mar May Feb Aug 1/1/16 Sep Nov Shell 10,314 10,452 10,806 11,346 11,
Slide 29: Chad Holliday, Chairman
Chad Holliday Chairman Royal Dutch Shell Royal Dutch Shell May 23, 2017
Slide 30: Update for investors
OPL 245 www.shell.com/investors Update for investors Royal Dutch Shell May 23, 2017 30
Slide 31: Ben van Beurden, Chief Executive Officer
Ben van Beurden Chief Executive Officer Royal Dutch Shell Royal Dutch Shell May 23, 2017
Slide 32: Supporting the Paris agreement
Supporting the Examples how Shell’s activities can help work with others towards meeting the aspiration of the Paris agreement Paris agreement Supplying LNG to Pakistan, displacing liquid fuels used for power generation increases Shell’s Scope 3 emissions, but reduces the emissions from power genera
Slide 33: Annual General Meeting 2017
Annual General Meeting 2017 Royal Dutch Shell plc May 23, 2017 #makethefuture Royal Dutch Shell May 23, 2017
Slide 34: Royal Dutch Shell May 23, 2017
Royal Dutch Shell May 23, 2017