Shell PLC · LSE:SHEL
Shell — Royal Dutch Shell — Non-Deal Roadshow (September 2007)
36 slides from Shell's roadshow presentation, Sep 20, 2007
Slide 1: Delivery and Growth: Leveraging a Sustainable Portfolio
DELIVERY AND GROWTH LEVERAGING A SUSTAINABLE PORTFOLIO ROXANNE DECYK PARIS, 20 SEPTEMBER 2007
Slide 2: Disclaimer Statement
DISCLAIMER STATEMENT This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking s
Slide 3: Who We Are
DELIVERY AND GROWTH LEVERAGING A SUSTAINABLE PORTFOLIO WHO WE ARE
Slide 4: Royal Dutch Shell plc
ROYAL DUTCH SHELL PLC GLOBAL ENERGY COMPANY • Europe’s largest company by market cap (~$240 billion) • World’s 2nd largest private energy & petrochemicals company by market cap • Operating in more than 130 countries • Serving 25 million retail customers per day • 108.000 staff • A leader in integrat
Slide 5: Unified Board, Corporate Governance
UNIFIED BOARD, CORPORATE GOVERNANCE DELEGATION OF AUTHORITY ROYAL DUTCH SHELL PLC BOARD Audit Committee Nomination Remuneration Social and Succession Committee Responsibility Committee Committee CHIEF EXECUTIVE AND EXECUTIVE COMMITTEE Businesses Functions • Exploration and • Finance Production • Leg
Slide 6: Worldwide Presence
WORLDWIDE PRESENCE EXPLORATION OIL PRODUCTS GAS & POWER ALTERNATIVE & PRODUCTION & CHEMICALS ENERGIES Malaysia V-power Diesel LNG Site Nigeria Offshore Wind Netherlands Canada Oil Sands India Retail Station China Coal Gasification Hydrogen Iceland Gulf Of Mexico Chemicals China LNG Shipping Advanced
Slide 7: What We Do: Meeting the Energy Challenge
DELIVERY AND GROWTH LEVERAGING A SUSTAINABLE PORTFOLIO WHAT WE DO… MEETING THE ENERGY CHALLENGE
Slide 8: Growth Energy Demand
GROWTH ENERGY DEMAND RISING GLOBAL ENERGY DEMAND CHANGING ENERGY MIX 100= Global primary energy demand 2000 Million barrels oil equivalent per day 300 400 HIGH 350 300 200 LOW 250 200 150 100 100 50 0 0 2000 2025* 2050* 2000 2025* REST OF THE WORLD COAL NUCLEAR OECD OIL LARGE SCALE HYDRO GAS ALTERNA
Slide 9: Strategy on Track
STRATEGY ON TRACK STRATEGY CONTEXT MORE UPSTREAM, GROWTH ENERGY DEMAND PROFITABLE DOWNSTREAM • Cash generation + reinvestment • Portfolio choices • Environment + sustainability • Unconventionals + renewables COMPETITIVE • Competition • Downstream includes chemicals RETURNS PRIORITIES DELIVERY + GROW
Slide 10: Major Growth Hubs and Key Progress
MAJOR GROWTH HUBS AND KEY PROGRESS AOSP / Peace River Sakhalin Ormen Lange Kashagan Pinedale Port Arthur Pearl Qatargas 4 MAJOR GROWTH HUBS Singapore chemicals DOWNSTREAM BC-10 Australia UPSTREAM > 100,000 BOE/D 50,000 – 100,000 BOE/D 9 Royal Dutch Shell share, gross basis, Pre and post FID projects
Slide 11: Stronger Implementation Capabilities
STRONGER IMPLEMENTATION CAPABILITIES NEW HIRES DEEPENING PROFESSIONALISM 7,000 • Group Chief Technologist • Shell Technology India 6,000 • Project Academy • Commercial Academy 5,000 STRONG GROWTH IN BOTH GRADUATE 4,000 AND EXPERIENCED HIRES 3,000 IN 2006 2,000 • 1,500 graduates • 4,500 experienced h
Slide 12: Technology and Innovation
TECHNOLOGY AND INNOVATION NON STOP INNOVATION MEETING CHALLENGES NEW HORIZONS • LNG • Deepwater • Wind, Solar • Catalysts • Tight Gas • Biofuels, Hydrogen • Seismic Imaging • GTL Fuel • Coal-To-Liquids • Smart Wells • Coal Gasification • Oil Shale CO2 SOLUTIONS 11
Slide 13: How We Do It: In a Responsible Way
DELIVERY AND GROWTH LEVERAGING A SUSTAINABLE PORTFOLIO HOW WE DO IT… IN A RESPONSIBLE WAY
Slide 14: Our Sustainable Development Journey
OUR SUSTAINABLE DEVELOPMENT JOURNEY As part of the Shell Business Principles, we commit to contribute to sustainable development. This requires balancing short and long term interests, integrating economic, environmental and social considerations into business decision-making. 13
Slide 15: The Business Case
THE BUSINESS CASE LOWERING RISK AND IMPROVING FINANCIAL PERFORMANCE • TALENT • INNOVATION ACCESS • COST REDUCTION FROM ECO EFFICIENCY • REPUTATION OPERATIONAL EXCELLENCE • LOYAL CUSTOMERS & BRAND ACCEPTANCE • RISK CONTROL • PORTFOLIO FIT 14
Slide 16: Embedding Sustainable Development
EMBEDDING SUSTAINABLE DEVELOPMENT GOVERNANCE TOOLS REPORTING & ASSURANCE • Shell General Business • Shell-wide remuneration • Internal assurance Principles scorecard (SD 20%) • Group wide policies, • Key performance indicators • External Review Committee standards and commitments • HSE Management Sy
Slide 17: Implementation on Local Level and in Projects
IMPLEMENTATION ON LOCAL LEVEL AND IN PROJECTS Example: ATHABASCA OIL SANDS • IMPACT ASSESSMENTS Benefits for local people Livelihood impacts Health Safety Security, violence and conflict Cultural and community lifestyle impacts Economic impacts • STAKEHOLDER ENGAGEMENT Example: SAKHALIN • SOCIAL PER
Slide 18: Recognized Leadership Sustainable Development
RECOGNIZED LEADERSHIP SUSTAINABLE DEVELOPMENT • In FTSE4Good and Dow Jones Sustainability Index since their inception • No. 1 energy company in Accountability Transparency Index • Carbon Disclosure Project – included in climate leadership index since its inception • Goldman Sachs Global Energy Envir
Slide 19: How We Do It: CO2 Management and Alternative Energies
DELIVERY AND GROWTH LEVERAGING A SUSTAINABLE PORTFOLIO HOW WE DO IT… CO2 MANAGEMENT AND ALTERNATIVE ENERGIES
Slide 20: Leadership in CO2 Management
LEADERSHIP IN CO2 MANAGEMENT MANAGING OUR OWN CO2 EMISSIONS ADDRESSING CO2 INTENSITY • Increasing gas and LNG supply BASELINE EMISSIONS • CO2 sequestration / EOR • Clean coal technologies Improving efficiency • Biofuels Reducing flaring Leading designs • Renewables & Hydrogen CO2 for enhanced oil re
Slide 21: Alternative Energy (Gas & Power)
ALTERNATIVE ENERGY (GAS & POWER) SOLAR • NEW GENERATION THIN FILM TECHNOLOGY (CIS) • Improved efficiency • 20 MW facility under construction solar WIND ENERGY • DEVELOPER, OWNER & OPERATOR • ~ 412 MW INSTALLED CAPACITY • Noordzee wind on stream • Mount storm under construction wind energy 20
Slide 22: Alternative Energy (Downstream)
ALTERNATIVE ENERGY (DOWNSTREAM) HYDROGEN • WORLD’S LARGEST PUBLIC TRANSPORT JV (THE NETHERLANDS) • DEMONSTRATION PROJECTS IN US, EUROPE, ASIA Hydrogen BIO AND XTL SYNTHETIC FUEL SOLUTIONS • LARGEST DISTRIBUTOR WORLDWIDE • LEADING IN 2ND GENERATION: • IOGEN – CELLULOSE ETHANOL • CHOREN – BIOMASS TO L
Slide 23: Leading in Current and Future Bio-fuels
LEADING IN CURRENT AND FUTURE BIO-FUELS TECHNOLOGIES FOR TOMORROW Sunflower Rapeseed Soya Food crops Bio-esters Diesel CHOREN Conversion Biomass Diesel + Residues to Liquids 2nd generation Wheat Sweet corn Sugar cane IOGEN Enzymatic Mogas + Residues hydrolysis 2nd generation Cellulose, ethanol Food
Slide 24: Themes & Projects
DELIVERY AND GROWTH LEVERAGING A SUSTAINABLE PORTFOLIO THEMES & PROJECTS 1. SOCIAL INVESTMENT 2. HUMAN RIGHTS & BIODIVERSITY 3. SPILLS & SAFETY 4. PROJECTS: Sakhalin Athabasca Zerogen Australia CO2 Emissions Project Qatar Pearl Gas to Liquids Clean Coal Technology
Slide 25: Social Investment
SOCIAL INVESTMENT POSITIVE CONTRIBUTION TO COMMUNITIES AND COUNTRIES WHERE IT OPERATES CORPORATE • Shell Livewire – young entrepreneurs community • Shell centenary scholarship fund IN COUNTRIES • Local community development programmes in more than 100 countries SHELL FOUNDATION • Shell Foundation $2
Slide 26: Human Rights & Biodiversity
HUMAN RIGHTS & BIODIVERSITY SUPPORT HUMAN RIGHTS • Signatory to key international codes e.g. UN Global Compact, Voluntary Principles on Security and Human Rights • Danish Institute for Human Rights Compliance Assessment Tool for risk and issue assessment COMMIT TO BIODIVERSITY • Industry first with
Slide 27: Spills, Safety
SPILLS, SAFETY SPILLS FATALITIES* ‘000 tonnes 100 million working hours 30 16 25 14 12 20 10 15 8 10 6 4 5 2 0 0 97 98 99 00 01 02 03 04 05 06 97 98 99 00 01 02 03 04 05 06 TOTAL SABOTAGE OPERATIONAL HURRICANE TOTAL ROAD OPERATIONAL TARGET 2005 TARGET 2006 * Fatal accident rate employees and contrac
Slide 28: Sakhalin II: Our Actions
SAKHALIN II OUR ACTIONS CONTRIBUTING TO DEVELOPMENT RUSSIA AND SAKHALIN • Two new offshore oil & gas • ~$400 million infrastructure upgrade Sakhalin Island platforms • $100 million Sakhalin Regional Development Fund • Russia's first LNG plant • $ 27 million fund for SD and SI projects • Phase II pea
Slide 29: Oil Sands - Our Actions
OIL SANDS - OUR ACTIONS • Long-term cumulative environmental and social impact assessment • Reduced Shell's Oil Sands Portfolio IN SITU OIL RESOURCES environmental • ~ 55 bln barrels oil footprint by design in place Peace River Athabasca • Green house gas MINING RESOURCES management • growth potenti
Slide 30: Carbon Capture and Storage: ZeroGen Project (Australia)
CARBON CAPTURE AND STORAGE ZEROGEN PROJECT (AUSTRALIA) PROJECT DESCRIPTION • World 1st CO2 capture & storage coal power project in design • Integrated coal-based gasification plant, Rockhampton • 200km CO2 pipeline • CO2 storage in reservoir ~2km below surface Queensland • Resulting in low CO2 Rockh
Slide 31: Demonstration Project in Rotterdam: Managing CO2 Emissions
DEMONSTRATION PROJECT IN ROTTERDAM MANAGING CO2 EMISSIONS PERNIS REFINERY FUEL CELL BUS Hydrogen CO2 DIRECT CO2 SALES MINERALISATION SEQUESTRATION 30
Slide 32: Qatar Pearl Gas to Liquids: Clean Fuel
QATAR PEARL GAS TO LIQUIDS: CLEAN FUEL EMISSIONS REDUCTIONS Example: Particulates; Emissions [mg/km] GTL fuels trials China 30 20 10 0 EU IV Diesel Shell GTL emissions <10ppm Fuel limit sulphur PEARL GTL PROJECT GTL FUEL • Final investment decision Q2 2006 • Most cost-efficient alternative fuel to r
Slide 33: Clean Coal Technology for the Future
CLEAN COAL TECHNOLOGY FOR THE FUTURE 15 licenses in China – 5 onstream Dongting construction complete Dec 06 (Sinopec JV) Buggenum (250 MW): since 1994 Nuon new license (600 MW) Powerfuel new license (900 MW) Stanwell Zerogen (Australia) Coal to liquids opportunities BUSINESS DEVELOPMENT COAL GASIFI
Slide 34: Investing for the Future
INVESTING FOR THE FUTURE % CAPITAL EMPLOYED UNDER CONSTRUCTION CAPITAL EMPLOYED RISK PROFILE 25% 20% 15% 2007 10% 5% 2012-2014 0% COMPETITORS AVG. SHELL HIGH LOW INTERMEDIATE VERY LOW 2006 Maplecroft Political Risk Index 33
Slide 35: Investment and Choices
INVESTMENT AND CHOICES CUMULATIVE DIVESTMENT PROCEEDS ($BLN) CAPITAL SPENDING ON TRACK ($BLN) H107 2007 25 ORGANIC 11 24-25 20 NET ACQUISITION/(DISPOSAL) (3) (5) SAKHALIN (4) (4) 15 SHELL CANADA 7 7 10 NET CAPITAL SPENDING 11 22-23 5 0 2004 2005 2006 2007 H1 UPSTREAM DOWNSTREAM OTHER 34
Slide 36: Q2 2007 Highlights
Q2 2007 HIGHLIGHTS SATISFACTORY RESULTS • Q2 2007 CCS earnings per share increased 22% • Good operating performance PORTFOLIO PROGRESS • Major projects on track • Disposals programme adds focus STRATEGY ON TRACK • Competitive cashflow • Capital discipline 35
Royal Dutch Shell — Non-Deal Roadshow (September 2007) on 6ix