Shell Plc · LSE:SHEL

Shell — Royal Dutch Shell — Q3 2020 Earnings Presentation

30 slides from Shell's earnings presentation, Oct 29, 2020

  1. Slide 1: Third Quarter Results: A Compelling Investment Case

    THIRD QUARTER / RESULTS A COMPELLING INVESTMENT CASE Royal Dutch Shell ple October 29, 2020 #MakeTheFuture

  2. Slide 2: Ben van Beurden, Chief Executive Officer

    Ben van Beurden CHIEF EXECUTIVE OFFICER WwW) Royal Dutch Shell | October 29, 2020

  3. Slide 3: Definitions & Cautionary Note

    DEFINITIONS & CAUTIONARY NOTE ‘Adjusted Earnings is the income attributable to RDS ple shareholders for the period, adjusted for the aftertax effect of oil price changes on inventory and for identified items. In this presentation, "earnings" refers to “Adjusted earnings" unless stated otherwise. Adj

  4. Slide 4: A Compelling Investment Case

    N\\| ae A COMPELLING INVESTMENT CASE ™~ UPSTREAM BUSINESS: TRANSITION BUSINESSES: GROWTH BUSINESSES: FUNDING OUR STRATEGY ENABLING OUR STRATEGY THE FUTURE OF ENERGY [Integrated Gas _/ Chemicals & Products / Marketing /Power /Hydrogen / Biofuels MAKING THE FUTURE OF ENERGY = Leading and resilient cas

  5. Slide 5: Enabling strategy delivery

    Enabling strategy delivery / Customer-focused organisation / Sectoral decarbonisation teams in Integrated Gas, Marketing and New Energies / Integrated technical, digital and innovation teams / Value-driven asset management RESHAPING SHELL FOR THE FUTURE OF ENERGY Simpler, streamlined organisation /

  6. Slide 6: Jessica Uhl, Chief Financial Officer

    Jessica Uhl CHIEF FINANCIAL OFFICER Royal Dutch Shell ple @Q Foyer Dutch shell | October 29, 2020

  7. Slide 7: Clear cash allocation framework

    Clear cash allocation framework >, TARGET SHAREHOLDER DISTRIBUTIONS OF 20-30% OF CFFO Operationalising the framework Near-term Cash capex Ordinary progressive dividend / Reapportion nearterm $19-22 billion Cash capex: / 35-40% Upstream business, 35-40% Transition businesses, ~25% Growth businesses /

  8. Slide 8: Q3 2020 / Strong cash flow generation

    Cash flow from operations excluding working capital Free cash flow Adjusted Earnings ROACE Net debt Cash capex @Q Foyat Dutch shell | October 29, 2020 Q3 2020 / STRONG CASH FLOW GENERATION PROVING FINANCIAL RESILIENCE Q3 2020 average Brent price: $43/bbl $9.0 billion $7.6 billion $1.0 billion 3.9% $

  9. Slide 9: Q3 2020 / Financial Highlights: Adjusted Earnings

    Q3 2020 / FINANCIAL HIGHLIGHTS: ADJUSTED EARNINGS Integrated Gas 27 08 $ billion 5 Upstream 0.8 (0.9) 4 Oil Products 2.0 17 3 Chemicals 0.2 0.2 2 Corporate (0.8) (0.8) 1 Noncontrolling interest (0.1) (0.0) ie} Adjusted Earnings 4.8 1.0 J Earnings, $ per share 0.59 0.12 ROACE (%) 8.1 3.9 @Q Foyat Dut

  10. Slide 10: Q3 2020 / Financial Highlights: Cash Flow

    ea $bilion = 82019 3.2020 CFFO excluding working capital Q3 2019 to Q3 2020 Q3 2020 / FINANCIAL HIGHLIGHTS: CASH FLOW Integrated Gas 42 2.3 $ billion Upstream 43 21 “ Oil Products 3.1 5.1 @ 7 08 Chemicals 0.2 0.3 ° |_| P| — — a Corporate 0.4 0.5 6 ae Cash flow from operations 12.3 10.4 A CFFO excl.

  11. Slide 11: Competitive Cash Generation / Integrated Business Model Delivering Value

    ea 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 20 10 10 0 C) 2015 2016 2017 2018 2019 2020 4QR 2015 2016 2017 2018 2019 2020 HI 4QR HE Downstream _ fill Integra

  12. Slide 12: Ben van Beurden, Chief Executive Officer

    Ben van Beurden CHIEF EXECUTIVE OFFICER WwW) Royal Dutch Shell | October 29, 2020

  13. Slide 13: Shell's Climate Ambition

    SHELL’S CLIMATE AMBITION Changing our products and operations in step with society and our customers @Q Foyat Dutch shell | October 29, 2020 Own operations: Energy products: carbon Remaining customer net-zero emissions intensity in line with 1.5°C emissions: fully mitigated Reduce the emissions from

  14. Slide 14: Making the Future of Energy

    UPSTREAM BUSINESS: FUNDING OUR STRATEGY RESOURCES MAKING THE FUTURE OF ENERGY TRANSITION BUSINESSES: GROWTH BUSINESSES: ENABLING OUR STRATEGY ASSETS THE FUTURE OF ENERGY MARKETS @Q Foyat Dutch shell | October 29, 2020 ENHANCED VALUE DELIVERY THROUGH TRADING & OPTIMISATION

  15. Slide 15: Upstream, Transition and Growth Businesses

    GF UPSTREAM BUSINESS: FUNDING OUR STRATEGY Focus on advantaged core positions to maximise cash delivery and returns MAKING THE FUTURE OF ENERGY TRANSITION BUSINESSES: ENABLING OUR STRATEGY Strengthen the role of Integrated Gas and Chemicals & Products in the energy transition GROWTH BUSINESSES: THE

  16. Slide 16: Upstream Business: A More Focused, Competitive and Resilient Portfolio

    UPSTREAM BUSINESS / A MORE FOCUSED, COMPETITIVE AND RESILIENT PORTFOLIO TO DELIVER CASH UK Wi Kazakhstan I Permian Gulf of Mexico Oman ae Malaysia gg Ml Brunei BH Brazil I Core positions / Focused around 9 core positions: significant, advantaged and resilient assets with growth potential and strong

  17. Slide 17: Transition Businesses / Chemicals and Refining Delivering Integrated Value

    Men TRANSITION BUSINESSES / CHEMICALS AND REFINING DELIVERING INTEGRATED VALUE li Scotford wants WA Rheinland Norco 1] Deet Park Pulau Bukom ily # refineries 200454 Il Energy and chemical{porks — integrated refining and chemicals sites 2018 19 Hi Chemicalsonly sites 2020 14 Under consiruction 2025 ~

  18. Slide 18: Transition Businesses / Integrated Gas

    Men TRANSITION BUSINESSES / INTEGRATED GAS LNG ENABLING DECARBONISATION OF KEY MARKETS AND SECTORS Gas enabling the energy transition / New policy and favourable economics driving coal-togas switching / Growth of renewables supporting gas in the power mix / Expecting LNG demand to grow 3-4% in comin

  19. Slide 19: Growth Businesses / Marketing: Growing a Resilient Marketing Business

    Growing a resilient Marketing business GROWTH BUSINESSES / MARKETING PLATFORM FOR FURTHER GROWTH We have the scale and are leading in mobility by a distance $ billion 4 . 3 - 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 4QR N [Hl Marketing Adjusted Earnings @ Marketing as % of Shell Adjusted Earni

  20. Slide 20: Growth Businesses / Integrated Power

    GROWTH BUSINESSES / INTEGRATED POWER PORTFOLIO DELIVERING CUSTOMER CENTRIC ENERGY SOLUTIONS Trading / Decades of experience in power trading and wholesale supply / Significant scale in key markets Generation and storage / Enhancing returns through dilution premium and competitive financing / System

  21. Slide 21: Growth Businesses / Hydrogen and Biofuels

    ea GROWTH BUSINESSES / HYDROGEN AND BIOFUELS CREATING COMMERCIAL OPPORTUNITIES One of the largest blenders and distributors of biofuels Integrated value chain from electron to hydrogen molecule / Investing in advanced biofuels using alternative feedstocks such as forestry, agricultural and municipal

  22. Slide 22: A Compelling Investment Case

    ~~. ™ DN\\| dl ~~ A COMPELLING INVESTMENT CASE UPSTREAM BUSINESS: TRANSITION BUSINESSES: GROWTH BUSINESSES: FUNDING OUR STRATEGY ENABLING OUR STRATEGY THE FUTURE OF ENERGY / Integrated Gas / Chemicals & Products / Marketing / Power / Hydrogen / Biofuels MAKING THE FUTURE OF ENERGY Disciplined capita

  23. Slide 23: Slide 23

  24. Slide 24: 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

  25. Slide 25: Improved Cash Cover from Resilient Portfolio

    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

  26. Slide 26: 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

  27. Slide 27: 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

  28. Slide 28:  P   P   P  P    P

     P   P   P  P    P  P    P  P  P  P  P       P  P  P  P  P

  29. Slide 29:  P  P   P  P  P   

     P  P   P  P  P    P  P  P  P  P  P  P  P    P  P     P

  30. Slide 30:   P  P    P  P   P

      P  P    P  P   P  P     [C]   P  P  P   P 

Royal Dutch Shell — Q3 2020 Earnings Presentation on 6ix