Shell Plc · LSE:SHEL
Shell — Investor Day (February 2021)
16 slides from Shell's investor day presentation, February 2021
Slide 1: Integrated Gas Strategy deep dive
OW > a AY) INTEGRATED GAS Strategy deep dive Royal Dutch Shell ple February, 2021 #PoweringProgress
Slide 2: Cautionary Note
CAUTIONARY NOTE This presentation contains the following forwardlooking NonGAAP measures: Adjusted Earnings, Cosh capital expenditure, Underlying operating expenses, and Divestment proceeds. We ore unable to provide a reconciliation ofthe above forwardlooking NonGAAP measures to the most comparable
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: Well-positioned for the future of energy through differentiated strengths
WELL-POSITIONED FOR THE FUTURE OF ENERGY THROUGH DIFFERENTIATED STRENGTHS DIFFERENTIATED STRENGTHS VALUE DRIVERS SHIFTING WITH STRATEGY hea Advantaged assets Advanced products = Customer insight and scale Resource positions Market positions = Sectoral decarbonisation approach p P Customer value chai
Slide 5: Gas continues to provide more and cleaner energy
GAS CONTINUES TO PROVIDE MORE AND CLEANER ENERGY Reduce CO, and improve air quality Reduce methane emissions = Lead a coalition of companies and civil society to continuously reduce methane emissions = Natural gas emits between 45% and 55% less GHG than coal when used to generate electricity and les
Slide 6: Pathways to net-zero for natural gas
PATHWAYS TO NET-ZERO FOR NATURAL GAS Help customers offset emissions through carbon-neutral LNG = Delivered the first 7 carbonneutral LNG cargoes to customers in Asia = Enough to power nearly | million homes for a year = Gas sold to commercial and industrial customers and used to make hydrogen for r
Slide 7: Integrated clean energy systems driving higher returns
INTEGRATED CLEAN ENERGY SYSTEMS DRIVING HIGHER RETURNS = The energy system increasingly needs system-wide optimisation and the integration of flexible assets including the optimisation of customers’ own assets ® Shell's capabilities to match supply and demand for all our customer use cases and energ
Slide 8: World leader in LNG: resilient cash generation into the future
WORLD LEADER IN LNG: RESILIENT CASH GENERATION INTO THE FUTURE Lead the market = Leverage world-class innovation, flexibility and LNG trading capabilities = Grow market footprint by creating new markets and embracing new customers = Build material LNG for transport business by 2030 with >20% share i
Slide 9: Extend our lead in a growing LNG market
EXTEND OUR LEAD IN A GROWING LNG MARKET Leverage world-class trading portfolio = Supplied 70 mtpa of LNG to customers in 2020. Leading supplier to China = Diverse portfolio with varying contract duration, flexibility and indexation = 37 countries supplied from global portfolio with a fleet of 60 LNG
Slide 10: Grow our unmatched LNG supply portfolio
GROW OUR UNMATCHED LNG SUPPLY PORTFOLIO Unit technical cost $ per MMBtu 8 2015 2016 2017 2018 2019 2020 Competitive funnel of opportunities = Selective investment in competitive LNG assets; including backfill and expansion options = Unit technical cost reduced by around 40% to $4.8/MMBtu since 2015
Slide 11: Integrated energy solutions in Queensland, Australia
Full suite of energy INTEGRATED ENERGY SOLUTIONS IN demands served through QUEENSLAND, AUSTRALIA integrated value chains ... and renewable energy investments supply core customer demand ... LNG export & domestic gas sales aE serve local and global customers ... 120 MW solar farm being built C) Since
Slide 12: Creating an integrated gas & power value chain in India
CREATING AN INTEGRATED GAS & POWER VALUE CHAIN IN INDIA = Transforming a traditional LNG regas business into a fully owned and integrated Shell value chain = Supporting India to increase the share of natural gas in its primary energy consumption from 6% towards its aspired target of 15% by 2030 LNG
Slide 13: Q&A
Q&A Royal Dutch Shell ple
Slide 14: Global LNG - more markets, growing demand
INTEGRATED GAS GLOBAL LNG - MORE MARKETS, GROWING DEMAND LNG DEMAND EXPECTED TO GROW, UP TO 4% PER YEAR UNTIL 2040 LNG needed to connect natural gas supply and demand growth Estimated LNG trade volume in 2040, million tonnes WwW) Royal Dutch Shell | February 25, 2021 e@ Demand e@ Supply Sources: She
Slide 15: LNG demand to grow as gas provides more and cleaner energy
INTEGRATED GAS LNG DEMAND TO GROW AS GAS PROVIDES MORE AND CLEANER ENERGY LNG needed to connect natural gas Reduce CO, and improve air quality supply and demand growth Estimated LNG trade voli in 2040, million t = Natural gas emits between 45% and 55% less GHG than coal when used —- a al ae to gener
Slide 16: Strategy Day 2021 Disclosure Overview (3/3)
STRATEGY DAY 2021 DISCLOSURE OVERVIEW(3/3) Integrated Gas Opex reduction of ~20% by 2022 vs. 2019 >20% share in LNG bunkering sales by 2030 >7 mtpa of new LNG capacity onstream by the middle of the decade Develop 3 mtpa of new LNG markets by 2025 Project competitiveness: UTC <$5/MMBtu WwW) Royal Dut