Shell PLC · LSE:SHEL
Shell — Royal Dutch Shell — Shareholder Meeting (May 2019)
33 slides from Shell's shareholder meeting presentation, May 21, 2019
Slide 1: Annual General Meeting 2019
Annual General Meeting 2019 Royal Dutch Shell plc May 21, 2019 #makethefuture Royal Dutch Shell May 21, 2019
Slide 2: Chad Holliday, Chair
Chad Holliday Chair Royal Dutch Shell plc Royal Dutch Shell May 21, 2019 2
Slide 3: Definitions and cautionary note
This presentation contains data and analysis from Shell’s new Sky scenario. Unlike Shell’s previously published Mountains and Oceans exploratory scenarios, the Sky scenario is based on the assumption that society reaches the Paris Agreement’s goal of holding Definitions and the rise in global averag
Slide 4: 2018 Reports
2018 Reports Royal Dutch Shell May 21, 2019 4
Slide 5: Royal Dutch Shell May 21, 2019
Royal Dutch Shell May 21, 2019 55
Slide 6: #makethefuture
#makethefuture Shell Eco-marathon, Rotterdam, Netherlands Royal Dutch Shell May 21, 2019 6
Slide 7: Global population
Global World population population Billions of people Billions of people 11 11 10 10 9 9 8 8 7 6 5 4 2000 2010 2020 2030 2040 2050 UN Low variant UN Medium variant UN High variant Royal Dutch Shell May 21, 2019 7
Slide 8: Energy is the golden thread
Golden thread “Energy is the golden thread that connects economic growth, social equity and environmental sustainability.” Ban Ki-Moon Former UN Secretary-General Royal Dutch Shell May 21, 2019 8
Slide 9: Strategic ambitions
Strategic ambitions Thrive in the energy transition World-class investment case Strong Focus on delivering licence strong results to operate Royal Dutch Shell May 21, 2019 9
Slide 10: #makethefuture
#makethefuture Ford Model-T, Model T, 1920 Royal Dutch Shell May 21, 2019 10
Slide 11: #makethefuture
#makethefuture Starship truck – prototype Royal Dutch Shell May 21, 2019 11
Slide 12: Catalysts
Catalysts Catalyst samples, Shell Technology Centre Bangalore, India Royal Dutch Shell May 21, 2019 12
Slide 13: AI Drilling
AI Drilling Engineers discussing geological information for drilling plans, Houston, USA Royal Dutch Shell May 21, 2019 13
Slide 14: Autonomous ships
Autonomous ships Marine Autonomous Surface Ship (MASS), Gibraltar Royal Dutch Shell May 21, 2019 14
Slide 15: Strong societal licence to operate
Strong societal licence to operate Shell has a long Good Trusted history of caring No harm products company Royal Dutch Shell May 21, 2019 15
Slide 16: Ben van Beurden, Chief Executive Officer
Ben van Beurden Chief Executive Officer Royal Dutch Shell plc Royal Dutch Shell May 21, 2019 16
Slide 17: Strategic ambitions 2018
Strategic 2018 ambitions ◼ Portfolio reshaped, positioned for long-term resiliency Thrive in the energy ◼ Focus on asset resilience and longevity through the energy transition transition ◼ Growth in areas that will be essential in the energy transition World-class ◼ Strong financial delivery and str
Slide 18: Financial Summary
2018 Financial Summary 21.4 Earnings ($ billion); EPS +34% vs. 2017 49.6 Cash flow from operations excluding working capital ($ billion) 39.4 Free cash flow ($ billion) 8.7 ROACE1 (%) 20.3 Gearing (%) Earnings and ROACE on CCS basis, excluding identified items. All data on pre-IFRS basis. 1 2018 ROA
Slide 19: Cash allocation
Financial framework Cash allocation Buybacks ◼ Intention to purchase $25 billion by the end of 2020 Surplus ◼ Subject to further progress with debt reduction and oil price CFFO conditions ◼ $25-30 billion per annum, organic & inorganic Capital ◼ 2018: $25 billion investment ◼ 2019: within the $25-30
Slide 20: Free cash flow performance and payout
Financial framework Distributions from free cash flow Free cash flow $ billion performance $99/bbl $54/bbl $71/bbl $60/bbl and payout Available for share buybacks and debt reduction 2019-2021: ample capacity for debt reduction and share 2014 2017 2018 2019-2021 buybacks average Divestment proceeds l
Slide 21: HSSE performance
2018 Goal Zero on safety Operational spills HSSE Injuries – TRCF1 (per million working hours) million working hours Thousand tonnes # performance TRCF Working hours (RHS2) Volume of spills Number of spills (RHS) Upstream flaring Process safety Million tonnes CO2-equivalent Number of incidents Goal Z
Slide 22: NAM
50:50 joint venture June September between Shell and January Heads of Agreement Final report on 6000 ExxonMobil Earthquake Zeerijp MEAC1, ExxonMobil, outstanding damage claims to with a force of 3.4 Shell; signed MEAC NAM on the Richter scale February October Gas production Presentation ‘Nationaal l
Slide 23: Update for investors
OPL 245 Update for investors Responsible investor briefing – April 11, 2019 April 11, 2019 Ben van Beurden, Chief Executive Officer, Sir Nigel Sheinwald, Non-Executive Director and Chair of the Corporate and Social Responsibility Committee, Harry Brekelmans, Projects & Technology Director, Donny Chi
Slide 24: Net Carbon Footprint ambition
Net Carbon Footprint ambition Ambitions: ◼ Reduce Net Carbon Footprint of our energy products by ~20% by 2035 ◼ Be in line with society Net Carbon Footprint by 2050 Royal Dutch Shell May 21, 2019 24
Slide 25: Power value chain
Power value chain SUPPLY AND CUSTOMERS OPTIMISATION GENERATION Multiple parties are active on Leverage portfolio flexibility and Not all products are supplied by Shell, the demand side arbitrage opportunities some are purchased from third parties ◼ New Motion ◼ Shell Energy North America ◼ US onshor
Slide 26: Strategic ambitions 2018
Strategic 2018 ambitions ◼ Portfolio reshaped, positioned for long-term resiliency Thrive in the energy ◼ Focus on asset resilience and longevity through the energy transition transition ◼ Growth in areas that will be essential in the energy transition World-class ◼ Strong financial delivery and str
Slide 27: Annual General Meeting 2019
Annual General Meeting 2019 Royal Dutch Shell plc May 21, 2019 #makethefuture Royal Dutch Shell May 21, 2019
Slide 28: Royal Dutch Shell May 21, 2019
Royal Dutch Shell May 21, 2019
Slide 29: Achieving the Paris Agreement will require huge changes
Change Achieving the Paris consumption Agreement will patterns require huge changes in society’s relationship with energy… Reduce Store greenhouse Maximise remaining gas energy emissions efficiency emissions … Society will need to act in all areas. Use lower carbon energy Royal Dutch Shell May 21, 2
Slide 30: We all have a role to play: air and road travel
We all have a role to play…illustrations for air and road travel Change consumption Maximise energy Use lower carbon Store remaining patterns efficiency energy emissions Produce lighter, more Supply low carbon Air Less air Users to offset fuel-efficient planes. fuels: Bio-Kerosene, travel travel/tra
Slide 31: Our Net Carbon Footprint ambition focuses where we have most influence
Our Net Carbon Footprint ambition focuses where we have most influence… Baseline Operational Natural efficiency Renewable gas shift …we will sell fewer power products with higher Biofuels Electric emissions, and more Mobility products with lower or no CCS Natural sinks emissions. In 2019, we set a 3
Slide 32: We all have a role to play: heavy industry and housing
We all have a role to play…illustrations for the heavy industry and housing Change consumption Maximise energy Use lower carbon Store remaining patterns efficiency energy emissions Consume less? Help shift from coal to Heavy Optimise use of Produce different gas. Supply electricity Application of In
Slide 33: We all have a role to play: light and heavy industry
We all have a role to play…illustrations for light and heavy industry Change consumption Maximise energy Use lower carbon Store remaining patterns efficiency energy emissions Light Accept a smaller Upgrade and electrify Supply electricity industry range of clothing? machinery. More Use of circular f