Slide 1: Re-shaping Shell, to create a world-class investment case
Re-shaping Shell, to create a world-class investment case Downstream Day – Societe Generale John Abbott – Downstream Director Royal Dutch Shell plc May 11, 2017 #makethefuture Royal Dutch Shell May 11, 2017
Slide 2: John Abbott, Downstream Director
John Abbott Downstream Director Royal Dutch Shell plc Royal Dutch Shell May 11, 2017
Slide 3: Definitions & cautionary note
Definitions & Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves. Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil and gas reserves. Resources are consistent with t
Slide 4: Energy challenge
Energy challenge Growing population Global population will increase from around 7.4 billion today to nearly 10 billion by 2050, with 67% living in cities Rising demand Global energy demand will likely be almost 60% higher in 2060 than today, with 2 billion vehicles on the road (800 million today) On
Slide 5: Let's make the future
Strategy “Let’s make the future” STRATEGIC Focus portfolio on resilient positions Invest in advantaged projects World-class investment case Value chain integration FCF/share + ROCE growth Leader: value + Conservative financial influence management OPERATIONAL Reducing our Shared value Reset cost and
Slide 6: Driving strategy in multiple time horizons
Driving strategy Cash engines: today Growth priorities: 2016+ Future opportunities: 2020+ in multiple time horizons Funds dividends + balance sheet Cash engines 2020+ Material value + upside Affordable growth in Competitive + resilient Path to profitability advantaged positions Strong free cash flow
Slide 7: Downstream
Downstream Cash engine Growth priority Marketing Refining & Trading Chemicals Improve our financial Differentiated products Full integration with trading Feedstock plays performance Brand leverage + customer offer Improve retained assets Capacity growth Upgrading our portfolio Selective growth Reduc
Slide 8: Downstream financial performance
Downstream Earnings + ROACE Cash flow financial $ billion 10 % $ billion 15 performance 20 10 5 0 2013 2014 2015 2016 17Q1 -5 4Q rolling Cash flow excluding working capital 5 10 -10 Working capital movements Free cash flow Capital employed $55 billion as at end Q117 Refining & trading Marketing 0 0
Slide 9: Improving our Downstream footprint and performance
Improving our Portfolio change Earnings + ROACE Downstream $ billion % Backbone / grow: footprint and Chemicals 10 20 China performance LNG for transport Premium fuels + lubes Refinery crude flexibility 2016: others Fix: Showa Shell Singapore - manufacturing USGC restructuring post Motiva JV 5 Attra
Slide 10: Optimization of footprint
Oil Products Showa Shell divestment Motiva JV split SADAF Optimization of footprint SADAF Petrochemicals facility, Kingdom of Saudi Arabia Sale of ~33% of Showa Shell Integrate retained assets with Sale of 50% petrochemicals Sekiyu KK to Idemitsu Shell SADAF joint venture to SABIC Lubricants and fue
Slide 11: Chemicals
Chemicals Base Ethylene Higher Styrene Propylene Solvents Phenol chemicals oxide/ olefins monomer oxide glycols feedstock for brake fluids sunscreen polystyrene insulation pharmaceuticals plywood packaging films foam for plastic bottles shower gel fridge insulation paints kitchen carrier bags beddin
Slide 12: Chemicals
Chemicals Increasing standards of living driving growth Innovative solutions that support a lower carbon future Cold wash laundry Modern home Lightweight detergents insulation plastics in cars Petrochemicals are the key ingredients for thousands of essential products Faster growth than GDP, Oil and
Slide 13: Chemicals growth priority
Growth priority Earnings + ROACE Under construction Chemicals $ billion % 425,000 tonnes additional Alpha Olefins capacity 2 20 Geismar, USA 15 New liquids cracker and derivatives units 1 10 Capacity: ~1.2 million tonnes ethylene per annum Nanhai, China 50/50 JV CNOOC 5 Greenfield FID 2016 Capacity:
Slide 14: Refining and Trading: investing in selective growth
Investing in selective growth Refining 1,055,000 bpd 875,000 bpd 460,000 bpd and Trading Fredericia Scotford (100%) (100%) Mizue (Toa) (2%) Sarnia (100%) London Rotterdam Yamaguchi (1%) Calgary Puget Sound Yokkaichi (3%) (100%) Pernis (100%) Miro (32%) Beijing Retain competitive sites Rheinland (100
Slide 15: Shell Oil Products – marketing
Investing in selective growth Marketing – ROACE Marketing – free cash flow Shell Oil Products % $ billion – marketing 30% 6 20% 4 10% 2 0% 0 2013 2014 2015 2016 17Q1 4Q 2013 2014 2015 2016 17Q1 4Q rolling rolling No.1 market share in global retail + global lubricants ROACE on CCS basis, excluding id
Slide 16: Retail - 2016
Oil Products Retail - 2016 Royal Dutch Shell May 11, 2017 16
Slide 17: Retail's 5 ambitions for 2025
Oil Products Retail’s 5 ambitions for 2025 1 2 3 4 5 50% 20% LOWER EVERY 100% CARBON CUSTOMER Increase margin Fuels margin from Reduce carbon Treated like a Sites committed to share from low-emission intensity of our guest on site & in local communities convenience retail energy solutions retail out
Slide 18: Downstream
Downstream Cash engine Growth priority Marketing Refining & Trading Chemicals Improve our financial Differentiated products Full integration with trading Feedstock plays performance Brand leverage + customer offer Improve retained assets Capacity growth Upgrading our portfolio Selective growth Reduc
Slide 19: Questions & Answers
Questions & Answers Royal Dutch Shell May 11, 2017
Slide 20: Re-shaping Shell, to create a world-class investment case
Re-shaping Shell, to create a world-class investment case Downstream Day – Societe Generale John Abbott – Downstream Director Royal Dutch Shell plc May 11, 2017 #makethefuture Royal Dutch Shell May 11, 2017
Slide 21: Royal Dutch Shell May 11, 2017
Royal Dutch Shell May 11, 2017