Shell Plc · LSE:SHEL
Shell — Investor Day (October 2022)
38 slides from Shell's investor day presentation, Oct 6, 2022
Slide 1: Shell Insights Marketing Update
SHELL INSIGHTS MARKETING UPDATE October 6th, 2022 POWERING PROGRESS
Slide 2: Cautionary Note
CAUTIONARY NOTE The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this presentation “Shell”, “Shell Group” and “Group” are sometimes used for convenience where references are made to Shell plc and its subsidiaries in general. Likewise, the word
Slide 3: Marketing Leadership Team
M A R KETING MARKETING LEADERSHIP TEAM Huibert Vigeveno István Kapitány Machteld de Haan Carlos Maurer Downstream Director EVP Mobility EVP Global Lubricants EVP Sectors & Decarbonisation Shell plc | October 6, 2022 3
Slide 4: Agenda
AGENDA Opening remarks & Scene Setting 14:00 – 14:15 BST With Huibert Vigeveno, Downstream Director Mobility Business 14:15 – 14:30 BST With István Kapitány, EVP Mobility Question and Answer Session 14:30 – 14:50 BST With Huibert Vigeveno, Downstream Director and István Kapitány, EVP Mobility 14:50
Slide 5: Marketing
MARKETING Shell plc | October 6, 2022 5
Slide 6: The Shell Investment Case
M A R KETING THE SHELL INVESTMENT CASE GENERATING SHAREHOLDER VALUE Growing value through a dynamic portfolio and disciplined capital allocation POWERING PROGRESS RESPECTING N A T U R E Our strategy to accelerate the POWERING LIVES Protecting the environment, reducing waste and transition to net-zer
Slide 7: Platform for Growth
M A R KETING PLATFORM FOR GROWTH A WORLD-LEADING CUSTOMER-FACING BUSINESS Mobility – Making customers’ life journeys Lubricants – Keeping the world progressing Sectors & Decarbonisation – Profitably better as the most valuable brand in the industry1 as #1 lubricants solutions provider2 helping our c
Slide 8: Resilient Performance with Low Carbon Business Focus
M A R KETING RESILIENT PERFORMANCE WITH LOW CARBON BUSINESS FOCUS Resilient performance through the macro Focusing on low carbon products and services Adjusted Earnings As % of Total Marketing spend and adjusted earnings for the period (2019-2021) $ billion 8 $23 billion ~$5-6 billion 4-8 years Low
Slide 9: Marketing Major Projects
M A R KETING MARKETING MAJOR PROJECTS Shell Shell- Project Country Products share % operated Under construction – Start-up 2022-2023 Shell Galloway USA 100 Renewable Fuels – RNG LanzaJet USA 15.4 Renewable Fuels Varennes Carbon Varennes Carbon Recycling Canada 40 Renewable Fuels Biofuels Plant Rot
Slide 10: Competitive Advantages in Brand, Differentiation and Customer Access
M A R KETING COMPETITIVE ADVANTAGES IN BRAND, DIFFERENTIATION AND CUSTOMER ACCESS Most valuable brand in the industry Differentiated offerings contributing ~60% $ billion % Gross Margin 2021 +4% pts +12% pts since 2017 since 2017 100% 50 +18% 46 brand Main-grade Mainstream value1 Fuels Lubricants vs
Slide 11: Integrated Portfolio Enabling Decarbonisation
M A R KETING INTEGRATED PORTFOLIO ENABLING DECARBONISATION CUSTOMER INTEGRATION ASSET INTEGRATION DECARBONISING OUR CUSTOMERS' VALUE CHAIN CUSTOMER BACK – PRODUCING WHAT THROUGH INTEGRATED OFFERS OUR CUSTOMERS REQUIRE THROUGH THE STRENGTH OF OUR VALUE CHAIN ENERGY AND RENEWABLE CARBON CHEMICAL POWER
Slide 12: Profitably Decarbonising with Our Customers to Deliver Growth Ambitions
M A R KETING PROFITABLY DECARBONISING WITH OUR CUSTOMERS AS WE AIM TO DELIVER GROWTH AMBITIONS Strategic Levers Delivery 2025 Targets Customers served at mobility locations daily New revenues New convenience stores ~32 million 40 million New sectors and services Shell-branded mobility locations
Slide 13: Mobility
MOBILITY Shell plc | October 6, 2022 13
Slide 14: Mobility: István Kapitány
MOBILITY István Kapitány Executive Vice President for Mobility Shell plc plc | October 6, 2022 Shell 14
Slide 15: A Leading Mobility Platform
MOBILITY A LEADING MOBILITY PLATFORM BRAND VALUE1 Shell MOST VALUABLE Tesla $50 BRAND IN THE billion INDUSTRY... Coca-Cola Nike bp # OF RETAIL LOCATIONS2 Shell AND ONE OF THE McDonald's BIGGEST RETAILERS... Starbucks ~46k ExxonMobil bp TotalEnergies Couche-Tard WITH THE CUSTOMERS SERVED AT MOBILITY
Slide 16: Profitable Growth Through Differentiated Offers and Delivery Discipline
MOBILITY PROFITABLE GROWTH THROUGH DIFFERENTIATED OFFERS AND DELIVERY DISCIPLINE Continued earnings growth Robust margins through oil price cycle1 Adjusted earnings $/bbl $ cents per L $ billion 120 7 19% growth 4 100 6 8% CAGR 80 5 3 60 4 2 40 3 Brent (per $bbl) Fuels margin 1 20 2 0 0 1 2013 2017
Slide 17: Growing Value in an Attractive Market
MOBILITY - CONVENIENCE RETAIL GROWING VALUE IN AN ATTRACTIVE MARKET Strong margin growth in convenience retail (CR) Continued location growth Convenience retail margins $million1 1100+ Shell Café sites 1100 ~2500 additional stores since 2017 since 2021 launch 1000 15K 900 12.5K 800 10K >1500 stores
Slide 18: Loyalty Programs as Differentiator Driving Value Growth
MOBILITY - LOYALTY LOYALTY PROGRAMS AS DIFFERENTIATOR DRIVING VALUE GROWTH Hard-to-replicate loyalty program with continued growth in reach Fuel Charging 84 million1 84 25 markets 25 + 32 million +5 H1 2022 H1 2022 Convenience Lubes Retail Ferrari experience 52 20 Rewards Jan Jan 2020 2020 Value upl
Slide 19: Enabling Business Customers to Decarbonise
MOBILITY - FLEET SOLUTIONS ENABLING BUSINESS CUSTOMERS TO DECARBONISE Robust P&L contribution Global scale and proprietary platform Mobility Average Adjusted Earnings 2017-2021 100% 28% ~8.5 million active Fleet cards 600K+ 46 markets ~220 million +800k vs. 2020 locations accepting 50% with direct p
Slide 20: Building the Mobility Offer of the Future by Leveraging Differentiators
MOBILITY – EV CHARGING BUILDING THE MOBILITY OFFER OF THE FUTURE BY LEVERAGING DIFFERENTIATORS Leveraging competitive differentiators Aiming to become a global leader… Shell operated EV charge points >500k1 Customer Access thousand charge points +102% operated 100 charge points by 2025 80 60 40 Glob
Slide 21: Material Progress in Achieving EV Charging Growth
MOBILITY – EV CHARGING MATERIAL PROGRESS IN ACHIEVING EV CHARGING GROWTH Global presence and differentiating capabilities… ...driving early-stage utilisation and profitability… Utilisation rates for H1’221 China >20 850+ Europe 4-15% 19-26% Markets with EV charging Shell Recharge professionals Ameri
Slide 22: Q&A Session
Q&A SESSION Shell plc | October 6, 2022 22
Slide 23: Lubricants
LUBRICANTS Shell plc | October 6, 2022 23
Slide 24: Lubricants: Machteld de Haan
LUBRICANTS Machteld de Haan Executive Vice President for Global Lubricants Shell plc | October 6, 2022 24
Slide 25: Essential, Attractive and Growing Value Pool
LUBRICANTS ESSENTIAL, ATTRACTIVE AND GROWING VALUE POOL Lubricants keep the world progressing across sectors Industrial Commercial Road Transport Automotive New Fluids Global lubricants market expected to grow well into 2030s and beyond Overall Industrial Passenger car New fluids lubricants lubrican
Slide 26: Advancing Strategic Delivery, with Rateable Growth Underpinned by Global Presence
LUBRICANTS ADVANCING STRATEGIC DELIVERY, WITH RATEABLE GROWTH UNDERPINNED BY GLOBAL PRESENCE Advancing towards 2025 growth commitments Resilient despite external volatilities Adjusted Earnings Base oil price1 & Unit Margin indexed against 2013 $ billion 2 1,600 10% CAGR 120 1,400 100 1.6 Base oil pr
Slide 27: Hard-to-Replicate Differentiators Across the Value Chain
LUBRICANTS HARD-TO-REPLICATE DIFFERENTIATORS ACROSS THE VALUE CHAIN DEEP CUSTOMER ~1 million customers across sectors and working with Global coverage via Shell and ACCESS ACROSS 16/20 biggest auto OEMs distributor staff >15K SECTORS LEVERAGING Most preferred brands1 across respective segments Techn
Slide 28: Differentiators Driving Profitability
LUBRICANTS DIFFERENTIATORS DRIVING PROFITABILITY Higher value contribution through premium products Leadership in industrial segment Gross Margin contribution Industrial lubricants market share 20211 Leading brand share preference across sectors2 +$300 million in premium gross Shell margin since 201
Slide 29: Transforming from Lubricants to Fluid Solutions Leadership
LUBRICANTS TRANSFORMING FROM LUBRICANTS TO FLUID SOLUTIONS LEADERSHIP Building early competitive edge in new fluids Growing fluid management solutions EV & Battery Fluids Thermal Solutions Jiffy Lube US workshop chain Bespoke co-development with Commercial and/or Technical 10 of the biggest OEMs glo
Slide 30: Sectors & Decarbonisation
SECTORS & DECARBONISATION Shell plc | October 6, 2022 30
Slide 31: Sectors & Decarbonisation: Carlos Maurer
SECTORS & DECARBONISATION Carlos Maurer Executive Vice President for Sectors & Decarbonisation Shell plc | October 6, 2022 31
Slide 32: Decarbonisation Solutions Are Being Developed Sector by Sector
SE C TORS & D E C A RBONISATION DECARBONISATION SOLUTIONS ARE BEING DEVELOPED SECTOR BY SECTOR Commercial Road Construction & Mining & Agriculture & Aviation & Marine Oil & Gas Transport Road Quarrying Forestry Established businesses Shell Aviation Shell Construction & Road Low Carbon Fuels fuels >1
Slide 33: Our Customers Are Making Commitments to Tackle Climate Change
SE C TORS & D E C A RBONISATION OUR CUSTOMERS ARE MAKING COMMITMENTS TO TACKLE CLIMATE CHANGE SIGNIFICANT CHALLENGE & OPPORTUNITY FROM >30% Fortune 500 Policy pressure HARD TO ABATE SECTORS is building in companies have climate targets2 key markets 9% Aviation 9% Shipping 12% Chemicals 12% Other Ind
Slide 34: Shell's Decarbonisation Solutions
SECTORS & DECARBONISATION DEDICATED TEAMS WORK ON HIGHEST VALUE ENTERPRISE ACCOUNTS BRINGING SIGNIFICANT CO2e REDUCTIONS ACROSS A CUSTOMER’S VALUE CHAIN Other (Travel, Hypothetical example of a customer emissions profile split per business activity Use of Capital Goods, Raw Materials Sourcing Manufa
Slide 35: Collaborating with Global Brands to Accelerate Progress
SE C TORS & D E C A RBONISATION COLLABORATING WITH GLOBAL BRANDS TO ACCELERATE PROGRESS PENSKE BRIDGESTONE DHL . EV chargers installed in 7 states for E-Transit Circular and sustainable chemicals for tire Shell Recharge Infrastructure to DHL fleet production Express in Europe 20 million+ gallons ren
Slide 36: Scalable Innovation Delivers Decarbonisation Solutions Sector by Sector
SE C TORS & D E C A RBONISATION SCALABLE INNOVATION DELIVERS DECARBONISATION SOLUTIONS SECTOR BY SECTOR Charge-On Innovation Challenge Shell electrification solution for heavy duty off-road vehicles. Diesel-powered haul truck fleets are responsible for up to 80% of mines emissions Shell Aviation She
Slide 37: Q&A Session
Q&A SESSION Shell plc | October 6, 2022 37
Slide 38: Slide 38