Shell Plc · LSE:SHEL
Shell — Royal Dutch Shell — Q4 2020 Earnings Presentation
23 slides from Shell's earnings presentation, Feb 4, 2021
Slide 1: Fourth Quarter Results: Strong Operational Delivery in an Extraordinary Year
FOURTH QUARTER / RESULTS STRONG OPERATIONAL DELIVERY IN AN EXTRAORDINARY YEAR Royal Dutch Shell ple February 4, 2021 #MakeTheFuture
Slide 2: Jessica Uhl, Chief Financial Officer
Jessica Uhl CHIEF FINANCIAL OFFICER
Slide 3: 2020 Strong Operational Delivery in an Extraordinary Year
2020 / STRONG OPERATIONAL DELIVERY IN AN EXTRAORDINARY YEAR 2020 ACTUALS / No work+elated fatalities in Shelloperated ventures and fewer injuries than in 2019 $5 billion ADJUSTED EARNINGS / Cared for people, customers and communities A; CASH FLOW FROM $34 billion OPERATIONS / Industry-leading cash f
Slide 4: A Compelling Investment Case
A COMPELLING INVESTMENT CASE GROWTH PILLAR: TRANSITION PILLAR: UPSTREAM PILLAR: THE FUTURE OF ENERGY ENABLING OUR STRATEGY FUNDING OUR STRATEGY / Marketing /Power / Hydrogen / Biofuels / Integrated Gas _/ Chemicals & Products Focus Upstream - 9 core positions / $19 to 22 billion Cash capex in the /
Slide 5: 2020 Portfolio Highlights - Accelerating Our Strategy
er 2020 / PORTFOLIO HIGHLIGHTS - ACCELERATING OUR STRATEGY GROWTH PILLAR: THE FUTURE OF ENERGY TRANSITION PILLAR: ENABLING OUR STRATEGY UPSTREAM PILLAR: FUNDING OUR STRATEGY / First power from Borssele offshore wind farm in the Netherlands, and Final Investment Decision on CrossWind - enabling an in
Slide 6: Marketing: Strong Financial Delivery in Challenging Market Conditions
_ MARKETING / STRONG FINANCIAL DELIVERY IN CHALLENGING MARKET CONDITIONS Growing profitability in Retail and Lubricants Adjusted Earnings, $ billion Adapting our customer proposition Supporting our / >99% of Retail sites and Lubricants plants remained open 3 customers in 2020, serving customers’ ess
Slide 7: 2020 Delivering on Cash Preservation Measures
er 2020 / DELIVERING ON CASH PRESERVATION MEASURES Vs. 2019 $18 billion -25% Vs. 2019 WwW) Royal Dutch Shell | February 4, 2021 Reduction of underlying operating expenses by $3-4 billion par annum over the next 12 months since March 2020, compared with 2019 levels $37 billion $24 billion / Exceeded
Slide 8: Q4 2020 Strong Cash Flow Generation
@4 2020 / STRONG CASH FLOW GENERATION Cash flow from operations excluding working capital Free cash flow Adjusted Earnings ROACE Net debt Cash capital expenditure @ Foyer Dutch shell | February 4, 2021 PROVING FINANCIAL RESILIENCE Q4 2020 average Brent price: $44/bbl $6.6 billion $0.9 billion $0.4 b
Slide 9: Q4 2020 Financial Highlights: Adjusted Earnings
er @4 2020 / FINANCIAL HIGHLIGHTS: ADJUSTED EARNINGS Integrated Gas 2.0 11 $ billion Upstream 0.7 (0.7) ‘ Oil Products LS 0.5 Refining & Trading 0.5 (0.3) 8 Marketing 1.0 0.8 Chemicals (0.1) 04 Co Corporate (1.1) (0.8) Non-controlling interest (0.1) (0.1) 5 Adjusted Earnings 2.9 0.4 Adjusted Earning
Slide 10: Q4 2020 Financial Highlights: Cash Flow
er @4 2020 / FINANCIAL HIGHLIGHTS: CASH FLOW Integrated Gas 3.5 2.2 bale 4 Upstream 40 2.0 2 Oil Products 25 12 10 a (2.5) (0.5) Chemicals (0.0) 0.8 8 Corporate 0.3 01 ° 4 Cash flow from operations 10.3 6.3 2 CFFO excl. working capital 12.3 6.6 ® Cash flow from investing acti’ (4.9) (5.4) s SF e e °
Slide 11: 2020 Strong Operational Delivery in an Extraordinary Year
er 2020 / STRONG OPERATIONAL DELIVERY IN AN EXTRAORDINARY YEAR / No work-related fatalities in Shell-operated ventures and fewer injuries than in 2019 / Cared for people, customers and communities / \ndustry-leading cash flow from operations / Underlying opex reduced by $4 billion / Cash capex reduc
Slide 12: Upcoming Events - H1 2021
UPCOMING EVENTS - H1 2021 11 February Strategy Day 25 February = LNG Outlook & Integrated Gas Strategy 15 April ESG Update 29 April QI 2021 results May (TBD) Pre AGM engagement 18 May Annual General Meeting 26 May Upstream Investor Day
Slide 13: Thank you for your interest in Royal Dutch Shell ple. Please understand that an
Thank you for your interest in Royal Dutch Shell ple. Please understand that an investment in Royal Dutch Shell ple securities carries with it the risk that you could sustain losses as a result of your investment. Therefore, an investment in Royal Dutch Shell ple securities may not be appropriate fo
Slide 14: Definitions & Cautionary Note
DEFINITIONS & CAUTIONARY NOTE ‘Adjusted Eomings 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. Adju
Slide 15: Slide 15
Slide 16: 2020 HSSE Performance
er 2020 / HSSE PERFORMANCE Goal Zero on safety Operational spills Injuries (TRCF) per million working hours Million working hours Thousand tonnes # of spills 2 10 250 800 ! 400 ° 2010 2012 2014 2016 2018 2020 2010 2012 2014 2016 2018 2020 = TRCF Ml Working hours (RHS) = Volume of spills = Number of
Slide 17: Q1 2021 Outlook
re Ql] 2021 / 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. The first quarter 2021 outlook provides ranges for operational and financial metrics based on cur
Slide 18: Q4 2020 Prices and Margins
er Q4 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 — a 3 0 0 4 0 19Q4-20Ql_--20Q2-— «2003-2004 1904 2001 -20Q2 20032004 9Q4-20Q1_ 200220
Slide 19: Production incl. NCI A&D
/ 14 / 12 / 10 / (1.3) (0.1) (0.6) 8 6 11.1 9.1 4 2 0 2019 Production incl. A&D Other net revisions 2020 NCI
Slide 20: Upstream Portfolio & Major Projects
re UPSTREAM PORTFOLIO & MAJOR PROJECTS Project Country Shell Peak production Shell share % kboe/d operated Mero 1 [A] Brazil 20 Pierce post Depressurisation UK 93 30 v PowerNap USA 100 35 v Vito USA 63 100 v * Mero 2 [A] Brazil 20 180 Cspot Mero 3 [A] Bea 20 180 @ Permian Penguins Redevelopment Cult
Slide 21: Integrated Gas Portfolio & Major Projects
re INTEGRATED GAS PORTFOLIO & MAJOR PROJECTS Project Country Shell Peak LNG Shell share % production capacity operated kboe/d mtpa Arrow Surat Gas Australia 50 backfill Gasnor @ Barracuda Trinidad & Tobago 100 backfill v INGC O Droaon td Sokhalin Colibri Trinidad & Tobago 87 backfill v ines hates ae
Slide 22: Chemicals and Products Portfolio & Major Projects
re CHEMICALS AND PRODUCTS PORTFOLIO & MAJOR PROJECTS Project Country Shell Products Shell share % operated Pennsylvania Petrochemicals. yc (Gaieniahias 7 Complex foto clei M Ps US Dairy RNG USA 100 Renewable Fuels Scotford essmowren Under constuction = Startup 2023 cotford Il Sn... Moerdijk Enerkem
Slide 23: A Customer-Led Integrated Energy Offering
A CUSTOMER-LED INTEGRATED ENERGY OFFERING Shell offers integrated solutions to customers - from biofuels, to hydrogen, solar and wind - while using nature and technology to capture emissions from hardto-abate sectors. Here is a selection of our activities. USA Power trading Atlantic Shores 7 Offshor