Shell Plc · LSE:SHEL
Shell — Q1 2021 Earnings Presentation
37 slides from Shell's earnings presentation, Apr 29, 2021
Slide 1: First Quarter Results
#PoweringProgress e (@) e ve FIRST QUARTER RESULTS IN POLE POSITION TO BENEFIT FROM ECONOMIC RECOVERY Royal Dutch Shell ple April 29, 2021
Slide 2: 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 3: The Shell Investment Case
THE SHELL INVESTMENT CASE GENERATING SHAREHOLDER VALUE Growing value through a dynamic portfolio and disciplined capital allocation POWERING PROGRESS Our strategy to accelerate the transition to netzero emissions, purposefully and profitably RESPECTING NATURE Protecting the environment, reducing was
Slide 4: Q1 2021 Key Messages
POWERING PROGRESS Q1 2021 KEY MESSAGES = Progressing on achieving netzero emissions = Adjusted Earnings of $3.2 billion, capturing a First energy company to submit its Energy by providing choices to customers for the upside from higher oil prices Transition Strategy to shareholders for decarbonising
Slide 5: Delivering the Strategy
DELIVERING THE STRATEGY OUR VISION FOR THE FUTURE OF ENERGY #POWERINGPROGRESS GROWTH PILLAR: TRANSITION PILLAR: THE FUTURE OF ENERGY ENABLING OUR STRATEGY / Marketing / Renewables and Energy Solutions / Integrated Gas / Chemicals and Products MARKETS ASSETS UPSTREAM PILLAR: FUNDING OUR STRATEGY RESO
Slide 6: Marketing
MARKETING PROFITABLY DECARBONISING WITH OUR CUSTOMERS Strategic levers New revenues ™ New convenience stores ® Digital and Services New customers ™ Market share growth in China, India, Indonesia, Mexico, Russia = New locations Grow base = Premium growth: V-Powe ™ New locations Decarbonise mobility &
Slide 7: Renewables and Energy Solutions
RENEWABLES AND ENERGY SOLUTIONS INTEGRATED CLEAN ENERGY SYSTEMS: HIGHER FUTURE RETURNS Integrated Power = Becoming a leading provider of clean Poweras-a-Service Clean Hydrogen = Aiming to replicate the scale, flexibility and success of our LNG market position Carbon capture and storage = Develop com
Slide 8: Integrated Gas
INTEGRATED GAS WORLD LEADER IN LNG: RESILIENT CASH GENERATION Lead the market = Grow market footprint by creating new markets and embracing new customers = Build material LNG for transport business Run the business = Unmatched portfolio optionality and resilience = Aiming to grow value from GTL prod
Slide 9: Chemicals and Products
CHEMICALS AND PRODUCTS INTEGRATED ENERGY AND CHEMICALS PARKS DELIVERING LOWER-CARBON PRODUCTS Transition to Energy and Chemicals Parks = Delivering synergies, bringing customers and assets together Reduce commodity exposure = Transforming to reduce emissions (Scope 3) from the products we sell Focus
Slide 10: Upstream
UPSTREAM DELIVERING THE ENERGY OF TODAY WHILE FUNDING THE ENERGY OF TOMORROW Targets QI progress examples Focusing the portfolio = Continued strong performance with 92% controllable = Maximising value from lean ~80% availability in the first quarter for our deep-water operated positions: develop int
Slide 11: Portfolio
PORTFOLIO DIVESTMENTS TARGET OF $4 BILLION AVERAGE PER ANNUM ALREADY ACHIEVED IN THE FIRST QUARTER i Gasnor H Duvernay shales I Fredericia refinery $707 million ll Egypt Western Dessert $646 million @ OML17 $533 million HE QGC infrastructure Hi Completed divestments $2.5 billion Hi Announced divestm
Slide 12: Q1 2021 Financial Results
QI 2021 FINANCIAL RESULTS STRONG CASH FLOW GENERATION PROVING Sei/ebh ePrees FINANCIAL RESILIENCE $5.7 billion = Includes restructuring provision for Reshape of $0.5 billion $3.2 billion a Strong earnings driven by higher oil prices and higher margins $11.5 billion = New measure introduced with effe
Slide 13: Q1 2021 Financial Results: Strong Cash Conversion
QI 2021 FINANCIAL RESULTS STRONG CASH CONVERSION Adjusted Earnings Q4 2020 to QI 2021 Cash conversion Q1 2021 $ billion $ billion 4 4 17 06 0.3 — a 03 =—s = a 12 ie || (0.4) (07) a (03) . om ~(0) 2 ° é > of ee sm noe WwW) Royal Dutch Shell | April 29, 2021 Left graph: information presented on a CCS
Slide 14: Q1 2021 Financial Results: Net Debt Reduction
Ql 2021 FINANCIAL RESULTS STRONG CASH FLOW GENERATION RESULTING IN NET DEBT REDUCTION Net debt Q4 2020 to Q1 2021 Working capital movements Q1 2021 $ billion $ billion 80 0 40. 13 08 13 70 44 ———__ a a ] (127) ay 2 40 3 (3.4) (0.1) ° i LJ (10) 0 5 2 e Ss RD + > > ° ‘ aN 2 @ g > sv ‘a Ss a ¥ \o éé Ss
Slide 15: Integrated Gas, Renewables and Energy Solutions
Ql 2021 FINANCIAL RESULTS INTEGRATED GAS, RENEWABLES AND ENERGY SOLUTIONS Adjusted Earnings Cash conversion Q1 Quarterly Databook available on www.shell.com/investors Q2 2021 outlook $ billion ° FS © ° © $ billion PS r) 5 e SF € Oy & os LY — , - x & & ey © s s o x Fe Sg ce dB 0? fo S fo) a = eS “« &
Slide 16: Upstream
QI] 2021 FINANCIAL RESULTS UPSTREAM un gprgatae Adjusted Earnings Cash conversion Q1 Q2 2021 outlook = Production is expected to be approximately 2,150 - 03 2,350 thousand boe/d, reflecting lower seasonal 03 10 10 54 01 ° ; 61 02 | 3301 — To gas demand and divestment impacts. $ billion 8 le I I ° ie
Slide 17: Oil Products
QI] 2021 FINANCIAL RESULTS OIL PRODUCTS Adjusted Earnings Cash conversion Q1 Quarterly Databook available on www.shell.com/investors Q2 2021 outlook 0.2 00 06 —= gf 09 0.0 Sor SF EA DOMO L S SL << FS PD FL RY SF FPO wr SS ot & s FS SF F © ¥ Pe & SG = es = Refinery utilisation is expected to be appro
Slide 18: Chemicals
QI] 2021 FINANCIAL RESULTS CHEMICALS Bus pashan Adjusted Earnings Cash conversion Q1 Q2 2021 outlook = Manufacturing plant utilisation is expected to be 233 1,274 i °% - B49 75 oN 730 277 2 32 1,041 | H 1,045 approximately 76% - 84%. 210 3 4 = Chemicals sales volumes are expected to be approximately
Slide 19: Cash Potential
CASH POTENTIAL INTEGRATED BUSINESS MODEL DELIVERING VALUE Balanced CFFO excluding working capital Track record of sector-leading CFFO $ billion $ billion 50 60 40 %° 40 30 30 20 20 10 10 0 ) 2015 2016 2017 2018 2019 2020 2021 2015-2016 = 2017S 2018._~=— 2019» 2020S 1 2021 4Qrolling 4Qrolling Downstr
Slide 20: Capital Allocation
CAPITAL ALLOCATION TARGET SHAREHOLDER DISTRIBUTIONS OF 20-30% OF CFFO Ath PRIORITY WwW) Royal Dutch Shell | April 29, 2021 Clear capital allocation framework Near-term Cash capex Ordinary progressive dividend AA credit metrics through the cycle Additional shareholder distributions Capex growth Conti
Slide 21: Powering Progress: Improving Transparency
POWERING PROGRESS IMPROVING TRANSPARENCY FOR ALL STAKEHOLDERS = Comprehensive suite of annual reports and publications = First energy company to submit its Energy Transition Strategy to shareholders for advisory vote at the Annual General Meeting = Published a statement on corporate political engage
Slide 22: Enhancing Disclosures: Quarterly Databook
ENHANCING DISCLOSURES AND IMPROVING TRANSPARENCY QUARTERLY DATABOOK a Introducing additional quarterly disclosures and modelling guidance as of QI 2021 = EBITDA and FCF reconciliation for each segment = New businessspecific disclosures and annual guidance linked to key value drivers = Responding to
Slide 23: Enhancing Disclosures: What Is New?
ENHANCING DISCLOSURES AND IMPROVING TRANSPARENCY . WHAT IS NEW? Quarterly Databook available EBITDA and FCF walks Quarterly disclosures on key value Modelling guidance for each business drivers Income/los eribuable wo Royal Duch hel ple shareholders lessened ems cnribtobe to Royal Duh Sal plc sharsh
Slide 24: Reporting Segmentation
ENHANCING DISCLOSURES AND IMPROVING TRANSPARENCY REPORTING SEGMENTATION Current segments Businesses Future segments Strategic pillars Chemicals Chemicals Integrated Gas Renewables and Energy Solutions Integrated Gas Upstream Upstream Corporate WwW) Royal Dutch Shell | April 29, 2021 Chemicals & Prod
Slide 25: Integrated Gas Disclosures
ENHANCING DISCLOSURES AND IMPROVING TRANSPARENCY INTEGRATED GAS Value drivers Quarterly Databook disclosures Modelling guidance Realised price - liquids NEW Realised price - natural gas NEW IG-specific earnings and CFFO sensitivities for Brent and JCC-3 NEW Liquids and natural gas production by regi
Slide 26: Integrated Gas: Valuing Oil and Gas Production
ENHANCING DISCLOSURES AND IMPROVING TRANSPARENCY INTEGRATED GAS - VALUING OIL AND GAS PRODUCTION Integrated Gas price exposure (2020) Realised prices vs. markers and Adjusted Earnings Integrated Gas liquids & production gas split WwW) Royal Dutch Shell | April 29, 2021 Destination LNG 49% 448 kboe/d
Slide 27: Upstream Disclosures
ENHANCING DISCLOSURES AND IMPROVING TRANSPARENCY UPSTREAM Value drivers Quarterly Databook disclosures Modelling guidance = Realised price - liquids NEW = Upstream-specific earnings & cash sensitivities for Brent, HH, EU TTF NEW = Realised price - natural gas NEW = ~70% of Upstream production is in
Slide 28: Oil Products - Marketing
ENHANCING DISCLOSURES AND IMPROVING TRANSPARENCY OIL PRODUCTS - MARKETING Value drivers Quarterly Databook disclosures Modelling guidance = Perunit gross profit by class of business NEW = Gross profit (revenue less purchases costs) is a key profitability driver of EBITDA as = Retail the business res
Slide 29: Oil Products - Refining and Trading
ENHANCING DISCLOSURES AND IMPROVING TRANSPARENCY OIL PRODUCTS - REFINING AND TRADING Value drivers Quarterly Databook disclosures Modelling guidance = Global indicative refining marginis an approximation of global gross refining unit Global indicative refining margin NEW. margin = Refining-specific
Slide 30: Oil Products - Indicative Refining Margin
ENHANCING DISCLOSURES AND IMPROVING TRANSPARENCY OIL PRODUCTS - INDICATIVE REFINING MARGIN Crude markers Global indicative refining margin Brent (25.0)% NWE $/obl Urals (13.0)% i Canada Mixed Sweet Blend (11.0)% 5 USGC Light Louisiana Sweet (24.5)% a Middle East Dubai (24.5)% 4 Product markers 2 Nap
Slide 31: Chemicals Disclosures
ENHANCING DISCLOSURES AND IMPROVING TRANSPARENCY CHEMICALS Value drivers Quarterly Databook disclosures Modelling guidance = Industry margins to be used as indication of the impact of market conditions vs. = Base Chemicals - Cracker Industry Margins Previous quarters = Actual performance can vary fr
Slide 32: Upcoming Events
Upcoming events 4 May 7 May 18 May 25 May 29 July e WwW) Royal Dutch Shell | April 29, 2021 ) Introduction to Enhanced Quarterly Disclosures Shell Insights: Energy Transition Strategy 2021 Annual General Meeting Shell Insights: Upstream Strategy Q2 2021 results Past events Annual ESG update Remunera
Slide 33: Slide 33
Slide 34: Upstream Portfolio & Major Projects
UPSTREAM PORTFOLIO & MAJOR PROJECTS Project Country Shell Peak production Shell share % kboe/d operated Mero 1 [A] Brazil 20 180 Pierce post Depressurisation UK 93 30 v PowerNap USA 100 35 v Vito USA 63 100 v um Underconsvcion Sip 2028¢ Kazakhstan Jerun Malaysia — 30 95 Mero 2 [A] Brazil 20 180 Perm
Slide 35: Integrated Gas Portfolio & Major Projects
INTEGRATED GAS PORTFOLIO & MAJOR PROJECTS INGCO Dragon Sakhalin Lake Charles nee > Cove Point . ee eringtei L Gibraltar =o _ Costa Azul i Elba Island " mSEI Altamira ie @ AING ; NING @ Singapore m 4 sMDS anc cae ‘A Bolivia I q Gorgon QCING @ Liquefaction plants © Liquefaction plants under constructi
Slide 36: Chemicals and Products Portfolio & Major Projects
CHEMICALS AND PRODUCTS PORTFOLIO & MAJOR PROJECTS Mossmorran @ Pemnis Scotford cotford i a Moerdijk O Pennsylvania Norco Deer Park . Geismar @ Nanhai Pulau Bukom Ly Jurong Island I Energy and chemicals parks - Integrated refining and chemicals sites © Chemicalsonly sites O Sites under construction W
Slide 37: A Customer-Led Integrated Energy Offering
t A CUSTOMER-LED INTEGRATED ENERGY OFFERING ff d soluti NORWAY UNITED KINGDOM — GERMANY NETHERLANDS Shell offers integrated solutions YF Tetospart “le Sil Emery Ret H, Hysioge lotions NoordzeeWind 108MW to customers - from biofuels, to § comer? Hudson Energy REFHYNE electrolyser** Blouwwind 731.5MW_