Slide 1: Shell Insights: Energy Transition Strategy Shareholder Engagement
SHELL INSIGHTS ENERGY TRANSITION STRATEGY SHAREHOLDER ENGAGEMENT 7 May 2021
Slide 2: Definitions & Cautionary Note
DEFINITIONS & CAUTIONARY NOTE In this presentation, “operating expenses", “costs” and “underlying costs" refer to “Underlying operating expenses” unles stated otherwise. Underlying operating expenses represent “operating expenses excluding identified items", Operating expenses consist ofthe followin
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: Delivering the Strategy
DELIVERING THE STRATEGY OUR VISION FOR THE FUTURE OF ENERGY #POWERINGPROGRESS GROWTH PILLAR: TRANSITION PILLAR: UPSTREAM PILLAR: THE FUTURE OF ENERGY ENABLING OUR STRATEGY FUNDING OUR STRATEGY MARKETS ASSETS RESOURCES Enhanced value delivery through trading and optimisation WwW) Royal Dutch Shell |
Slide 5: Our goal to become a net-zero energy business by 2050
Wy) OUR GOAL to become a NET-ZERO ENERGY BUSINESS BY 2050 in step with society OUR CARBON TARGETS for ALL ENERGY WE SELL, SCOPE 1, 2 & 3 REDUCING NET CARBON INTENSITY 68% 20% 45% 100% Carbone Absclunarbo g' gCO2e/M 2023 2030 2035 2050 2016 baseline 1.7 gtpa 2016 baseline REDUCING ABSOLUTE CARBON EMI
Slide 6: Our Targets: Short, Medium and Long Term
OUR TARGETS: SHORT, MEDIUM AND LONG TERM ALIGNING OUR TARGETS WITH PARIS Shell's carbon intensity targets gCO;e/MI 100 Change in accounting BB iPcc 1.5°C scenarios range (Shell mitigation only) boundary to include all Hl IPCC 1.5°C scenarios range (Shell and customer mitigation) 80 oe mitigation act
Slide 7: Examples of Energy Transition Milestones by 2030
CARBON EXAMPLES OF ENERGY TRANSITION MILESTONES BY 2030 = a) & Operational efficiency! = Eliminating routine flaring = Maintaining methane emissions intensity <0.2% (2025) Natural gas shift = Oil production peaked in 2019, expected to decline 1-2% per annum ® No new frontier exploration entries anti
Slide 8: Our Strategy to Accelerate the Transition to a Net-Zero Energy Business
OUR STRATEGY TO ACCELERATE THE TRANSITION TO A NET-ZERO ENERGY BUSINESS OUR GOAL: Net zero by 2050, in step with society, aligned with Paris OUR CLIMATE TARGETS: ALL ENERGY SOLD SCOPES 1,2&3 ALIGNING OUR BUSINESS WITH PARIS: REDUCING NET ABSOLUTE EMISSIONS CARBON INTENSITY REDUCTION FROM 1.7 GTPA TO
Slide 9: Marketing: Profitably Decarbonising with Our Customers
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 10: 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 11: 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 12: 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 13: 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 14: Portfolio: Divestments Target of $4 Billion per Annum
PORTFOLIO DIVESTMENTS TARGET OF $4 BILLION AVERAGE PER ANNUM ALREADY ACHIEVED IN THE FIRST QUARTER Hi 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 HB Announced divest
Slide 15: Capital Allocation: Well-Positioned for the Future of Energy
CAPITAL ALLOCATION WELL-POSITIONED FOR THE FUTURE OF ENERGY Portfolio level approach & THROUGH DIFFERENTIATED STRENGTHS DIFFERENTIATED STRENGTHS VALUE DRIVERS SHIFTING WITH STRATEGY hea Advantaged assets Advanced products = Customer insight and scale Resource positions Market positions = Sectoral de
Slide 16: Capital Allocation: Capex Evolving Towards Growth Pillar
CAPITAL ALLOCATION CAPEX EVOLVING TOWARDS GROWTH PILLAR SUSTAINING OUR STRATEGY -~ Net debt above $65 billion Cash Priority: Strengthen balance sheet and maintain ~4% dividend per share growth annually, subject to Board approval = Cash capex of $19-22 billion per annum Minimum capex to deliver the s
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