Slide 1: Second Quarter 2020 Results
SECOND QUARTER 2020 RESULTS Decisive actions and strong performance deliver cash Royal Dutch Shell ple July 30, 2020 #MakeTheFuture
Slide 2: Ben van Beurden, Chief Executive Officer
\ ‘ ‘\S SN Ben van Beurden ive Officer Chief Execut © Foyot Dutch shel | July 30, 2020
Slide 3: Definitions & cautionary note
Definitions & cautionary note ‘Adjusted earings is the income attributable to RDS ple shareholders forthe period, adjusted forthe aftertax effect of ol price changes on inventory and for identified items. In this presentation, “earings” refers to “Adjusted earnings" unless stated otherwise. Adjusted
Slide 4: Key messages
Key messages Q2 results Cash preservation Strengthening the balance sheet = Integrated portfolio enabling resilient earnings and cash generation = Cash flow from operations excluding working capital of $6.5 billion = Strong value delivery through trading and optimisation capabilities = Decisive acti
Slide 5: HSSE performance
H] 202 HSSE performance W)) Royal Dutch Shell | July 30, 2020 Goal Zero on safety Operational spills Injuries (TRCE) per million working hours Million working hours Thousand tonnes # 2 10 250 800 ; 7 / woo 3 0 0 0 0 2010 «2012, 2014. 2016-2018. = 20H 2010 «2012, «2014-2016. 2018 = 20H1 =TRCF Il Work
Slide 6: Redefining our operations and processes under a 'new normal'
Redefining our operations and processes under a ‘new normal’ = Finance close process was executed virtually and completed faster than any quarter before = Apps replacing cards for fleet solutions customers in India and China = Audits executed virtually, providing quicker, realtime feedback and reduc
Slide 7: Reducing operating expenses
Reducing operating expenses On track to deliver reduction in underlying Decisive actions Underlying operating expenses $ billion Redesigning operating models and reshaping intoa more customer-focused and efficient organisation Further leveraging Shell Business Operations 10 Selective voluntary sever
Slide 8: Strong capital discipline
Strong capital discipline On track to reduce cash capital expenditure to $20 billion or below in 2020 W Royal Dutch Shell | July 30, Decisive actions Stop Lake Charles LNG, US MNG joint venture, Russia Refining growth projects Defer Final investment decisions: a Whale, US Gulf of Mexico = Cambo and
Slide 9: Prudent capital allocation
Prudent capital allocation Cash capital expenditure post 2020 dependent on macroeconomic environment Cash capital expenditure $ billion 30 20% Stable 25 environment 20 a Recessionary environment 15 10 5 ° 2018 2019 2020 plan 20208 2021E $ billion per annum Conventional Oil & Gas Deep Water Shales Co
Slide 10: Cash allocation priorities
Cash allocation priorities Protect value Grow value and distributions Additional capital expenditure Priorities Ordinary Capital Debt for cash >» Interest dividend expenditure reduction Additional shareholder distributions = $20 billion or lower ™ Maintaining AA credit metrics through the cycle for
Slide 11: Jessica Uhl, Chief Financial Officer
Jessica Uhl Chief Financial Officer © Foyot Dutch shel | July 30, 2020
Slide 12: Financial highlights: summary
Q? 2020 Q2 2020 average Brent price: $30/bbl Downstream margins lower than historical average Financial highlights: summary Cash i generation cadence oon $6.5 billion = Negative working capital movements of $4.0 billion = Of which $(0.3) billion organic free cash flow Free cash flow = $0.7 billion o
Slide 13: Financial highlights: earnings
Earnings Q2 2019 to Q2 2020 $ billion Q2 2019 Q2 2020 . $ billion Financial ; 4 . . Integrated G 17 0.4 highlights: megrae earnings Upstream 13 (1.5) 3 Oil Products 1.3 2.4 Chemicals 0.1 0.2 2 Corporate (0.8) (0.8) 15 ' | Non-controlling interest (0.1) (0.0) (0.3) Adjusted earnings 3.5 0.6 ° 0.1 = E
Slide 14: Revised price and margin outlook
Q2 20 Revised price and margin outlook = Impairments are a result of the revised medium and long-term price and @Q2 2020 impairments (post-tax) refining margin outlook reflecting the current macroeconomic Integrated Gas $8.2 billion environment as well as expected energy supply and demand Upstream $
Slide 15: Financial highlights: cash flow
Q2 Financial highlights: cash flow $ billion Q2 2019 Q2 2020 Integrated Gas 3.4 27 Upstream 5.5 0.3 Oil Products 1.3 (0.4) Chemicals 1.3 0.7 Corporate (0.4) (0.8) Cash flow from operations 11.0 2.6 Cash flow from operations 10.5 6.5 excl. working capital Cash flow from investing activities (4.2) (2.
Slide 16: Sector-leading cash flow generation
Sector-leading cash flow generation W)) Royal Dutch Shell | July 30, 2020 CFFO excluding working capital CFFO excluding working capital $ billion $ billion 60 60 « Zs .° —__— ‘fi [ | : _a = 2016 2017 2018 2019 200240R 2016 2017 2018 2019 2002 4QR Upstream Bh Downstream Peer range Integrated Gas J Co
Slide 17: Shell: A compelling investment proposition
Shell: A compelling investment proposition Thrive in the energy transition World-class investment case Strong licence to operate High-quality businesses Leading LNG business Worldclass deep-water assets High-return global Marketing business Unique trading and optimisation capabilities Proven executi
Slide 18: Upcoming events
Upcoming events: ~ Q3 2020 results - 29 October 2020 ~ Q4 2020 results - 04 February 2021 ~ Strategy Day - 11 February 2021 Ben van Beurden Jessica Uhl Chief Executive Officer Chief Financial Officer Royal Dutch Shell | July 30, 2020
Slide 19: Slide 19
Slide 20: Sector-leading cash flow generation
Sector-leading cash flow generation Free cash flow yield % 12 2015 2016 2017 2018 2019 QI 2020 Peer range Shell Free cash flow yield defined as free cash flow divided by average market capitalisation for the period. Free cash flow corrected for interest paid (CFFF) for Shell. Peer group WwW) Royal D
Slide 21: Financial highlights: trend
Q2 2020 (4@ rolling) average Brent price: $51/bbl Financial highlights: trend Earnings & ROACE Cash flow Gearing $ billion % $ billion $ billion % 25 0 © 100 40 20 8 40 75 30 15 6 50 20 10 , 5 . | 25 10 0 2 0 7 0 0 ° ° 2016 «= 2017,— «2018 —S 2019S 202 2016 = -2017,— «2018S 2019S 202 20 © 2016 2017
Slide 22: Outlook
Outlook Q3 2020 outlook = Asa result of COVID-19, there continues to be significant uncertainty in the macro- economic 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 vo
Slide 23: Prices and margins
Q2 202 Prices and margins Shell oil & gas realisations Industry refining margins Industry chemicals margins $ per barrel $ permscf $ per barrel $ pertonne 80 6 18 1000 15 6 800 60 2 4 ° 600 40 3.6 400 3 2 20 ° aN ; 200 3 0 0 6 0 1902 1903194. 201-2002 19021903. 194 0Q.—S—s(202 1902-1903, 194. 201200
Slide 24: P P P P P
P P P P P P P P P P P P P P P
Slide 25: > ~ P P P P P
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Slide 26: > ~ P P P P
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Slide 27: Global LNG demand below expectation due to unprecedented market conditions
Global LNG demand below expectation due to unprecedented market conditions Europe absorbed incremental LNG supply as Asian demand weakened HI 2020 global LNG demand H1 2020 global LNG supply MT MT 160 80 120 60 80 40 in i ; 0 (CC LI Asia Europe Rest of world Australia Russia Qatar Rest of world Actu
Slide 28: Changing market conditions triggering a global supply response
Changing market conditions triggering a global supply response Russian pipe gas exports! US production and LNG feedgas Rest of world LNG supply BCM BCM MT 200 15 85 40 8% 2 82 150 30 4% | = _! [ 9 79 = 100 20 Nal | | 0% : ° [1 = ll 50 10 4% 3 73 co) : 70 Oo EERE EE 8% 2019 2020 JunI8 —Decl8. = Jun]
Slide 29: Reduced supply growth expected globally
Reduced supply growth expected globally Revised outlook for 2020 global LNG market LNG supply growth range by country LNG demand growth range by region MTPA MTPA 25 25 20 20 Y Will, "8 P| "8 10 10 YW 5 5 WUYHHH . Le 0 LE Y 0 VL ey 5 Le 5 Hs 10 | 10 15 1S Australia us Russia Others Asia Europe Americ