Shell Plc · LSE:SHEL

Shell — Royal Dutch Shell — Q2 2019 Earnings Presentation

29 slides from Shell's earnings presentation, Aug 1, 2019

  1. Slide 1: Second Quarter 2019 Results

    SECOND QUARTER 2019 RESULTS Delivering a world-class investment case Royal Dutch Shell ple August 1, 2019 #MakeTheFuture

  2. Slide 2: Ben van Beurden, Chief Executive Officer

    \ ‘ ‘\S SN 2019 Ben van Beurden ive Officer Chief Execut © ‘royal Dutch shell | August 1,

  3. Slide 3: Definitions & cautionary note

    Definitions & cautionary note Gearing is defined as net debt (current and non-current debt less cash and cash equivalents, adjusted for the fair value of derivative financial instruments used to hedge foreign exchange and interest rate risks relating to debt, and associated collateral balances) as a

  4. Slide 4: Key messages

    Key messages Thrive in = Q2 2019 the energy Challenging macro environment impacting earnings transition Good cash flow generation On track to deliver additional $5 billion CFFO by end of 2020 = Strong portfolio World-class Portfolio positioned for value growth investment case Continued to reshape ou

  5. Slide 5: HSSE performance

    H] 2019 HSSE performance WA) Royal Dutch Shell | August 1, 2019 Goal Zero on safety Operational spills Injuries (TRCF) per million working hours Million working hours Thousand tonnes # 2 10 500 i 400 5 LN 250 2009 2011 2013 2015 2017 19H1 2009 2011 2013 2015 2017 19H1 WB rRcr Working hours (RHS) = V

  6. Slide 6: Financial summary

    H1 2019 Financial summary Royal Dutch Shell | August 1, 2019 H1 2019 ON TRACK 2020 OUTLOOK $9.6 billion $9.3 billion Inception to date ORGANIC FREE CASH FLOW SHARE BUYBACKS $28-33 billion $25 billion 2018-20 8.2% ROACE ~10% 27.6% GEARING ~25% $10.9 billion CASH CAPEX $24-29 billion Outlook at $60 pe

  7. Slide 7: Project delivery, Portfolio delivery

    Project delivery Portfolio delivery H] 2019 Delivery on track for 3 2 2 4 2019-20 FIDs Startups Exploration Divestments SUCCESSES = Final investment decisions taken: = Exploration successes: = Basrah Gas Company growth programme = Blacktip in US Gulf of Mexico = Mero-2 FPSO in Brazil’s pre-salt = Ki

  8. Slide 8: Global Commercial

    Global Commercial Working with our customers to innovate in mobility, energy and digital Energy @ Reducing the i f i ind g the impact of road paving EFlids on air quality Shell = Shell Bitumen FreshAir reduces SOx and CarCare . NOx emissions and particulate matter by ARF BABAR [= - 40% compared with

  9. Slide 9: Jessica Uhl, Chief Financial Officer

    Jessica Uhl Chief Financial Officer © Foyer Dutch shell | August 1, 2019

  10. Slide 10: Financial highlights: summary

    Q2 2019 average Brent Q2 2019 g price: $69/bbl Financial highlights: summary Cash flow f ti Seen ation excluding working capital $10.5 billion = Positive working capital movement of $0.6 billion Free cash flow $6.9 billion = Of which $6.2 billion organic free cash flow Returns Earnings $3.5 billion

  11. Slide 11: Earnings bridge

    6 4 0.2 0.3 (0.1) ~(0) ~(0) (1.2) (0.3) 4.7 2 3.5 0

  12. Slide 12: Cash flow from operations bridge

    14 12 1.0 10 0.2 0.8 0.3 8 (3.1) (0.3) 6 11.6 10.5 4 2 0

  13. Slide 13: Returns and gearing charts

    25 10 60 100 30 20 8 75 40 20 15 6 50 10 4 20 10 5 2 25 0 0 0 0 0 -5 -2 2015 2016 2017 2018 19Q2 2015 2016 2017 2018 19Q2 -20 2015 2016 2017 2018 19Q2 4QR 4QR ◼ ◼ ◼ ◼ ◼ ◼ ◼

  14. Slide 14: Outlook: Organic free cash flow

    Outlook Organic free cash flow on track for 2020 outlook Organic free cash flow $ billion = On track to deliver 2020 outlook of $28-33 billion organic 35 free cash flow $0 = Normalised organic free cash flow excludes effects of IFRS 16 os and working capital movements 20 = New projects provide free

  15. Slide 15: Project delivery

    Q2 2019 Project delivery On track to deliver additional $5 billion CFFO from new projects by end of 2020 ) Royal Dutch Shell | August 1, 2019 Appomattox - first oil Prelude - first LNG cargo - — = Gulf of Mexico hub development ramping production = Floating LNG facility offshore Australia, with capa

  16. Slide 16: Key messages

    ll | August 1, 2019 = Q2 2019 the energy Challenging macro environment impacting earnings Thrive in transition Good cash flow generation On track to deliver additional $5 billion CFFO by end of 2020 = Strong portfolio World-class Portfolio positioned for value growth investment case Continued to res

  17. Slide 17: Ben van Beurden and Jessica Uhl

    Ben van Beurden Jessica Uhl Chief Executive Officer Chief Financial Officer © Foyer Dutch shell | August 1, 2019

  18. Slide 18: Slide 18

  19. Slide 19: Outlook

    Outlook Q3 2019 outlook Q3 2018 - Q3 2019 OUTLOOK: Year-ago baseline reflects Shell’s earnings seasonality Integrated Gas = Production volumes: expected to be at a similar level = LNG liquefaction volumes: expected to increase slightly compared with the third quarter 2018, mainly due to new project

  20. Slide 20: Refining margins by region

    US West Coast US Gulf Coast coking Western Europe naphtha Rotterdam complex NE/SE Asia naphtha Singapore

  21. Slide 21: Integrated Gas results

    Q2 2019 Integrated Gas results (WY) Royol Dutch shell | August 1, 2019 Earnings Q2 2018 to Q2 2019 $ billion 3 Environment Choice 2 02) ! 0. : ! ~(0) i tom “0 = _— ' (0.1) (0.1) 1 ' 0 i Ss & oe of & & ¢ & 2 we 2 RS Individual categories presented excluding IFRS 16 impact; IFRS 16 impact on individua

  22. Slide 22: Upstream results

    Q2 2019 Upstream results (WY) Royol Dutch shell | August 1, 2019 Earnings Q2 2018 to Q2 2019 $ billion 2 Environment Choice 104 ' ~O \ 03 — ' (0) ' (0.3) 1 (03) | (0.1) : (0.2) 0 ! i & & < s < = J s s&s * 3 Individual categories presented excluding IFRS 16 impact; IFRS 16 impact on individual catego

  23. Slide 23: Downstream results

    Q2 2019 Downstream results W Royal Dutch Shell | August 1, 2019 Earnings Q2 2018 to Q2 2019 Earnings mix $ billion $ billion 2 lo (0.2) 0.2 ~o 2016 2017 2018 Q22019 4Q rolling Marketing Refining & Trading i Chemicals Individual categories presented excluding IFRS 16 impact; IFRS 16 impact on individ

  24. Slide 24: Financial highlights: IFRS impact

    Q2 2019 Financial highlights: IFRS 16 impact Post-lFRS16 —_Pre-IFRS 16 Cash flow f ti Seen ation excluding working capital $10.5billion $9.4 billion» $1. bilion, as lease payments now reported in CFF Frae cash flow $6.9billion $5.8billion = $1.1 billion, due to higher CFFO Returns Earnings $3.5billi

  25. Slide 25: Projects: Delivery on track for 2020

    Projects Delivery on track for 2020 On track to deliver additional $5 billion CFFO from new projects by end of 2020 (WY) Royol Dutch shell | August 1, 2019 Key projects Deep Water Brazil (8 FPSOs) Gulf of Mexico (Cardamom, Mars, Stones, Kaikias) Malikai Gumusut Kakap Ph! Brazil - Lula North (P-67) A

  26. Slide 26:   P    P  P  P   P

      P    P  P  P   P   P  P  P   P         P  P  P   P

  27. Slide 27: ~ ~  P  P  P   P   P

    ~ ~  P  P  P   P   P   P  P   P      P  P  P    P  P   P  P 

  28. Slide 28: ~ ~  P   P       

    ~ ~  P   P        P      P   P   P  P  P    P    P

  29. Slide 29: Organic free cash flow

    ORGANIC FREE CASH FLOW Full Year Half Year $ million Q1 2018 Q2 2018 Q3 2018 Q4 2018 2018 Q1 2019 Q2 2019 2019 Cash flow from operating activities 9,472 9,500 12,092 22,021 53,085 8,630 11,031 19,661 Cash flow from investing activities (4,294) 29 (4,082) (5,312) (13,659) (4,622) (4,166) (8,788) Free

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