Shell PLC · LSE:SHEL
Shell — Royal Dutch Shell — Shareholder Meeting (May 2015)
31 slides from Shell's shareholder meeting presentation, May 19, 2015
Slide 1: Balancing Growth and Returns: 2015 Annual General Meeting
BALANCING GROWTH AND RETURNS 2015 ANNUAL GENERAL MEETING ROYAL DUTCH SHELL 19 MAY 2015 Copyright of Royal Dutch Shell plc 19 May, 2015 1
Slide 2: Definitions & Cautionary Note
DEFINITIONS & CAUTIONARY NOTE NOT FOR RELEASE, PRESENTATION, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION. The information set out in this presentation is not intended to form t
Slide 3: Jorma Ollila, Chairman
JORMA OLLILA CHAIRMAN ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 19 May, 2015 3
Slide 4: The World in 2050
THE WORLD IN 2050 Rising energy demand, supply pressure, climate change Population Vehicles Rising standards 9 billion people, 2 billion vehicles Many millions of people will rise 75% living in cities (currently 800 million) out of energy poverty; with higher (2 billion more than today) living stand
Slide 5: Shell in 2014
SHELL IN 2014 Shell produces 2% of world’s oil OIL AND GAS PROVIDE 50%1 OF Shell produces 3% of world’s gas WORLDS ENERGY 43,000 retail sites Total capital CCS earnings2: Social investment: Salaries: $16 investment: $37 $22.6 billion $0.2 billion billion billion 94,000 employees Taxes & royalties
Slide 6: Oil Market + Shell Response
OIL MARKET + SHELL RESPONSE Oil supply Shell response Million barrels of oil per day Long-term $70 - $90 - $110 Brent oil price screens unchanged Planning for low prices 2015+; uncertain recovery timing Hard choices on our growth pipeline + options Opportunity to reduce costs Source: IEA est
Slide 7: Sustainability
SUSTAINABILITY Helping to shape a more sustainable energy future Sharing wider benefits where we operate Running a safe, efficient, responsible and profitable business www.shell.com/sustainability Copyright of Royal Dutch Shell plc 19 May, 2015 7
Slide 8: Unrelenting Focus on HSSE
UNRELENTING FOCUS ON HSSE ‘Goal Zero’ on safety Injuries TRCF/million working hours Million working hours Working hours TRCF Copyright of Royal Dutch Shell plc 19 May, 2015 8
Slide 9: Transparency
TRANSPARENCY Sustainability reporting 1997 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Revenue transparency Nigeria spills website Oil sands performance report Nigeria briefing notes CDP Climate change1 Sustainability report 1 Previously called Carbon Disclosure Project Copyright of
Slide 10: Shareholder Resolution: Climate Change Disclosure
SHAREHOLDER RESOLUTION: CLIMATE CHANGE DISCLOSURE RESOLUTION INFORMATION REQUEST 2013 2014 2015 Ongoing emissions management Asset portfolio resilience to post-2035 scenarios Low-carbon R&D and investment strategies Strategic KPIs and executive incentives Public policy position I
Slide 11: Shell Greenhouse Gas Website
SHELL GREENHOUSE GAS WEBSITE Information on climate change Information on emissions Additional information on resolution on climate change during the year www.shell.com/ghg Copyright of Royal Dutch Shell plc 19 May, 2015 11
Slide 12: Competitive Position
FINANCIAL PERFORMANCE COMPETITIVE POSITION Earnings per share growth – 3 years Shell Competitors Cash flow per share growth – 3 years % growth 2011-2014 % growth 2011-2014 240 Total shareholder return – 3 years 2014 ROACE % growth 2011-2014 EPS on reported CCS basis ROACE: earnings on reported local
Slide 13: Shell + BG: A Compelling Combination
SHELL + BG: A COMPELLING COMBINATION Accelerates deep water + LNG strategy Accretive to earnings and cash flow per share1 Complementary portfolios: synergy opportunity Enhanced portfolio: springboard to high-grade Shell + BG Improved cash flow enhances future dividends + buyback potential
Slide 14: Ben van Beurden, Chief Executive Officer
BEN VAN BEURDEN CHIEF EXECUTIVE OFFICER ROYAL DUTCH SHELL PLC 19 MAY 2015 Copyright of Royal Dutch Shell plc 19 May, 2015 14
Slide 15: Strategy and Investment Priorities
STRATEGY AND INVESTMENT PRIORITIES Grow cash flow + deliver competitive returns Competitive financial performance Capital efficiency Project delivery Capital allocation by global themes ENGINES GROWTH PRIORITIES LONGER TERM UPSTREAM DOWNSTREAM INTEGRATED DEEP WATER RESOURCES FUTURE GAS PLAYS OPPORTU
Slide 16: Balancing Growth and Returns
2014 DELIVERY BALANCING GROWTH AND RETURNS CCS earnings $22.6 billion; CFFO $45.0 billion Improve our financial Dividend $12 billion + share buyback $3 billion performance Restructuring in Oil Products + North America resources plays Moderated spending + growth Enhance our capital efficiency
Slide 17: Investment Priorities
INVESTMENT PRIORITIES Capital investment 2015 organic capital investment $ billion Longer term Growth priorities Engines Organic Acquisitions Moderating our capital spending Safe and reliable operations remain our priority 2014 acquisitions: Repsol LNG Copyright of Royal Dutch Shell plc 19 May,
Slide 18: Portfolio Restructuring
COMPETITIVE FINANCIAL PERFORMANCE PORTFOLIO RESTRUCTURING Resources plays Oil Products Upstream engine Restructuring $77 billion capital employed Copyright of Royal Dutch Shell plc 19 May, 2015 18
Slide 19: Top Start-ups 2014
DELIVER NEW PROJECTS TOP 4 START-UPS 2014 Repsol, Atlantic LNG in Trinidad & Tobago Mars-B, capacity >100 kboe/d, Shell 72% Cardamom, 50 kboe/d, Shell 100% Gumusut-Kakap FPS, 135 kboe/d, Shell 33% Copyright of Royal Dutch Shell plc 19 May, 2015 19
Slide 20: BG: A Strong Strategic Fit with Shell Portfolio
BG: A STRONG STRATEGIC FIT WITH SHELL PORTFOLIO Production BG impact million boe/d Longer term: Kazakhstan: Karachaganak adds to growth potential North America shales bolt-on FUTURE OPP.1 RESOURCES PLAYS Growth priorities: DEEP WATER LNG: combination of two world class portfolios Brazil deep
Slide 21: Reducing Onshore Nigeria Footprint
REDUCING ONSHORE NIGERIA FOOTPRINT Restructuring onshore footprint Nigeria onshore portfolio 2010 – 2015 divested 11 OMLs OML4 OML40 OML38 Legend OML41 Concessions – SPDC Legal Divested Concessions FIDs OML42 OML34 OML20 OML26 Targeted investments: gas and pipelines OML43 OML30 OML45 Forcados Yokr
Slide 22: Nigeria: SPDC Joint Venture Performance
NIGERIA: SPDC JOINT VENTURE PERFORMANCE 2014 overview Widespread oil theft remains a challenge Ongoing security challenges for people and assets Illegal fitting on NCTL at Opomakri, January 2015 SPDC JV spills Production Thousand tonnes kboe/day (SPDC) operational spills vol. operational spills
Slide 23: Alaska Exploration
ALASKA EXPLORATION 2015 Chukchi Sea 2 rig programme 28 support vessels Chukchi Sea Exploration Plan approved Final permits pending Transocean Polar Pioneer 2012 learnings + actions Upgraded contractor management Certified Arctic Containment System (ACS) Improved incident command system
Slide 24: Oil Sands
OIL SANDS Quest Carbon Capture and Storage Footprint - mining Targets oil sands emissions from Scotford upgrader north-east of Edmonton Expected start up 2015 1 mtpa CO2 Copyright of Royal Dutch Shell plc 19 May, 2015 24
Slide 25: NAM Joint Venture / Groningen – Netherlands Gas
NAM JOINT VENTURE / GRONINGEN – NETHERLANDS GAS Key focus areas Study work and hazard risk assessments Intensive stakeholder management and dialogues Innovative collaboration Government decisions taken Production restriction €1.2 billion mitigation programme www.namplatform.nl 2012-2014 ea
Slide 26: Climate Change
CLIMATE CHANGE Natural gas Carbon capture & storage Biofuels Energy efficiency Copyright of Royal Dutch Shell plc 19 May, 2015 26
Slide 27: Oil Supply & Demand
OIL SUPPLY & DEMAND Supply & demand Transport underpins oil demand, million barrels of oil per day despite electric vehicle growth Oceans1 Substantial supply gap IEA current policies Mountains1 70 million barrels per day IEA new policies 80% replacement of today’s production IEA 450 Equiva
Slide 28: Ongoing Emissions Management
ONGOING EMISSIONS MANAGEMENT Energy intensity Emissions Flaring performance Gj/tonne Index Million tonnes CO2 equivalent Million tonnes hydrocarbon flared (energy required to produce a tonne of oil equivalent) Upstream excl. Oil Sands Refining Chemicals Direct Indirect1 Rest of the World Nigeria 2
Slide 29: Low Carbon R+D and Investment Strategies
LOW CARBON R+D AND INVESTMENT STRATEGIES A Commercial operation1 Gas R&D B Technology demonstration/research Exploration C Used in Shell operations FEED FID CCS LNG 7.7mtpa On stream LNG 6.5mtpa LNG 7.4mtpa LNG 24mtpa GTL LNG for Transport Peterhead (1 mtpa) Gorgon Quest Biofuels (3-4 mtpa) (>1 mtpa
Slide 30: Dividend + Share Price Record
DIVIDEND + SHARE PRICE RECORD Competitive payout Share price 2014 Dividend $ billion RDSB 2010 2011 2012 2013 2014 2015E RDSB FTSE Copyright of Royal Dutch Shell plc 19 May, 2015 30
Slide 31: Balancing Growth and Returns: 2015 Annual General Meeting
BALANCING GROWTH AND RETURNS 2015 ANNUAL GENERAL MEETING ROYAL DUTCH SHELL 19 MAY 2015 Copyright of Royal Dutch Shell plc 19 May, 2015 31