Slide 1: Fourth Quarter 2019 Results
FOURTH QUARTER 2019 RESULTS Delivering a world-class investment case Royal Dutch Shell ple January 30, 2020 #MakeTheFuture
Slide 2: Ben van Beurden, Chief Executive Officer
\ ‘ ‘\S SN Ben van Beurden ive Officer Chief Execut © ‘Foyat Dutch shel | Jonuory 30, 2020
Slide 3: Definitions & cautionary note
Definitions & cautionary note Georing is defined os net debt {current ond noncurrent debt ess cash ond cosh equivolents, odjuted forthe fir vlue of dervotve financil instruments used to hedge foreign exchange and interest rate risks relating to debt, ond associated collateral bolonces) os a percenta
Slide 4: Key messages
2019 Key messages Thrive in the energy = World-class investment case transition Competitive cash flow generation led by marketfacing businesses Over $25 billion distributed through dividends and share buybacks in 2019 Disciplined execution of capital programme World-class = Thrive in the energy tran
Slide 5: HSSE performance
2019 HSSE performance WA) Royal Dute! Shell | January 30, 2020 Goal Zero on safety Operational spills Injuries (TRCF) per million working hours Million working hours Thousand tonnes. # . Cars| oS TX 250 0 0 0 0 2009 2011 2013-2015. 2017—S «2019 2009 = 2011 2013 «2015. 2017,-—S 2019 =TRCF Il Working
Slide 6: Strategic themes
Strategic themes Competitively positioned for the future of energy i's Core Upstream themes Ol Strong cash generation Fully sustain through the coming decades Ls Leading Transition themes iN 02 Extend leadership Capitalise on Energy Transition ve ‘ Emerging Power theme 03 Capture value from evolving
Slide 7: Strategic themes: progress in 2019
Strategic themes Progress in 2019 Core Upstream themes Leading Transition themes Emerging Power theme High graded portfolio with competitive delivery Leading portfolio in Deep Water with strong development funnel >70% of 2018-19 FIDs are Best-in-class or Top Quartile for Unit Development Cost Resili
Slide 8: Capital efficiency and project delivery
Capital efficiency and project delivery World-class capital efficiency driving lower capital spend World-class capital efficiency factory UDC reduction = Systematic and rigorous scope challenge $ perboe = Efficient execution focus 20 = Supply chain transformation ee 10 = Technology reduces scope or
Slide 9: Capital efficiency and project delivery
and project delivery Capital efficienc 2019 Upstream and Integrated Gas projects a A MJ Permian & Fox Creek “ [1 Salym Southern Hub U Pierce J 1 Tempa Rossa fa: Sirs © Rabab Harweel a Integrated Project ———— |¥] £6 development ra) LL C1 Basrah __ A 1 PowerNap growth projects 1 bored 7 — | Gumusut Ka
Slide 10: Retail
Retail Delivering on growth strategy in 2019 vs. 2017 Extending our lead as the world’s largest y retailer W Royal D II | January 30, 2020 New revenues > 1,500 new convenience stores 10% higher global nonfuels margin Resilient sectors > 8 million active cards in the past 12 months Successful conveni
Slide 11: Generating clean electricity
Generating clean electri ty = Acquired EOLFI, a floating wind developer = Acquired 49% interest in ESCO Pacific, one of the most successful solar developers in Australia = Growing our clean generation capacity from wind and solar: = Installed capacity: 700 MW (Shell share) = In development capacity:
Slide 12: 2019 highlights: Proof points
2019 highlights Proof points Strongly = Refreshed strategic themes - strong positioned customer focus through Leading Transition for the future themes and Emerging Power theme. AW) of ener gy = Net Carbon Footprint - 2016 baseline data and 2017-18 progress published Shell = Nature-based solutions -
Slide 13: Financial summary: 2019 actuals and 2020 outlook
2019 2019 Financial ACTUALS 2020 MD19 OUTLOOK summary $20.1 billion ORGANIC FREE $14.8 billion SHARE BUYBACKS Inception to date $28 - 33 billion $25 billion total programme (2018+) 6.9% ROACE ~10% 29.3% GEARING ~25% $23.9 billion CASH CAPEX $24 - 29 billion lower end of the range Royal Dutch Shell |
Slide 14: World-class investment case
World-class investment case Strategic themes delivery $ billion per annum Conventional Oil and Gas = Deep Water Shales Core Upstream themes [| Integrated Gas Chemicals Oil Products Leading Transition themes & Power Emerging Power theme Total incl. Corporate & Other Total (IFRS 16) incl. Corporate &
Slide 15: Reshaping Shell: people strategy and cost management
People strategy Cost management Reshaping Shell to deliver a world-class investment case Deliver more Sustaining cash 2020 cash capex ~50% of cash Growth pivots more than $10 billion capex spend of expected to be capex to be towards customer of divestments in $20 billion per at the lower end investe
Slide 16: Jessica Uhl, Chief Financial Officer
Jessica Uhl Chief Financial Officer © ‘Foyat Dutch shel | Jonuory 30, 2020
Slide 17: Q4 2019 financial highlights: summary
Q4 2019 Q4 2019 average Brent price: $63/bbl Downstream margins lower than historical average Financial highlights: summary Cash flow f ti Sean ation excluding working capital $12.3 billion = Negative working capital movements of $2.0 billion Frae cash flow $5.4 billion = Of which $3.9 billion organ
Slide 18: Progressing delivery for 2019-20
Q4 2019 Progressing delivery for 2019-20 2019 full year = 8 major project FIDs = 12 major project startups = >10 divestments completed and/or announced ll | January 30, 202 Project delivery 2 2 FIDs Startups = Final investment decisions taken: = Malikai phase 2 of the deep-water development in Malay
Slide 19: Financial highlights: earnings
Q4 2019 Financial highlights: earnings ll | January 30, 2 of which $ billion Q4 2018 Q42019 IFRS 16 impact Integrated Gas 24 2.0 +0.05 Upstream 1.9 08 +0.02 Downstream 21 14 +0.03 Corporate & non-<ontrolling interest (0.7) (1.2) 016 Earnings 5.7 2.9 0.06 Earnings, $ per share 0.69 0.37 0.01 ROACE (%
Slide 20: Financial highlights: cash flow
Q4 2019 Financial highlights: cash flow ell | January 30, of which $ billion Q4 2018 Q42019 IFRS16 impact Integrated Gas 5.8 3.5 +039 Upstream 69 42 +0.22 Downstream 8.8 2.3 +0.93 Corporate 0.6 0.3 Cash flow from operations 22.0 10.3 41.55 Cash flow from operations 12.9 12.3 +155 excl. working capit
Slide 21: Financial highlights: trend
Q4 2019 Financial highlights: trend Earnings & ROACE $ billion % 25 10 20 8 6 4 5 2 aoe Ee 2 2015 2016 2017 2018 2019 i Upstream I Downstream G \FRS 16 impact Integrated Gas [ll Corporate + NCI == ROACE (RHS) == ROACE preJFRS 16 (RHS) = 2019 earnings of $16.5 billion = Negligible impact of IFRS 16 =
Slide 22: World-class investment case delivery
World-class investment ca delivery Thrive in the energy transition World-class investment case Strong licence to operate Sustain and grow value Financial resilience through the cycle Increase shareholder distributions 22
Slide 23: Summary
Summary Thrive in the energy transition World-class investment case Strong licence to operate = World-class investment case Competitive cash flow generation led by marketfacing businesses Over $25 billion distributed through dividends and share buybacks in 2019 Disciplined execution of capital progr
Slide 24: Ben van Beurden, Jessica Uhl: Q&A
Ben van Beurden Jessica Uhl Chief Executive Officer Chief Financial Officer Royal Dutch Shell | Jonuary 30, 2020
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Slide 26: Preliminary results: SEC proved reserves
Preliminary results SEC proved reserves position Reserves performance Proved reserves 2019 vs. 2018 2019 RRR 65% Sitonboe 2019 RRR (excl. A&D) 76% " 3-year average RRR 48% 10 (14) 02) [J 3-year average RRR (excl. A&D) 90% Reserves/Production at end 2019 ~8.0 years ° billion boe 2017 2018 2019 ° Prod
Slide 27: Commodity prices and margins
Commodity prices and margins ch Shell | January 30, 2020 Brent Henry Hub $/bbl $/MMBtu 5 4 3 > Dan ww 1 0 2016 2017 2018 2020-2021 2022 2024 =. 2025 = Brent historical data = *" ~MDI9 assumption = Brent forward curve Chemicals cracker industry margins 2016 2017 2018 2020 2021 2022 = 2024 =— 2025 ==
Slide 28: Outlook
Outlook QI 2020 outlook Integrated Gas = Production is expected to be 950-980 thousand boe/d = LNG liquefaction volumes are expected to be 9.0-9.5 million tonnes Upstream = Production is expected to be 2,625-2,775 thousand boe/d Downstream = Refinery availability is expected to be 90%-94% = Oil Prod
Slide 29: Prices and margins
Q4 2019 Prices and margins Shell oil & gas realisations Industry refining margins Industry chemicals margins $ per barrel $ permscf $ per barrel $ pertonne 80 6 18 1000 15 6 800 60 2 4 ° 600 40 306 rn 400 3 2 20 0 ; 200 3 0 0 6 0 18Q4 «19. 19Q2_s«193_—Ss«19 18Q4sW9Q]_——s9QD_—s-19QB._—S19QA 1804 19Q,
Slide 30: Integrated Gas results
Q4 2019 Integrated Gas results W Royal Dutch Shell | January 30, 2020 Earnings Q4 2018 to Q4 2019 $ billion 3 Environment Choice olf a H ' ~(0) ' 0.1 ' on 0.1 ~0 2 f a — ! (0.3) o1 1 ' ° | c = o é x & e “ € & Individual categories presented excluding IFRS 16 impact; IFRS 16 impact on individual cate
Slide 31: Upstream results
Q4 2019 Upstream results W Royal Dutch Shell | January 30, 2020 Earnings Q4 2018 to Q4 2019 $ billion Environment Choice 2 01 Ln (0.4) (0.3) 1 (0.5) 02 0 (0.4) ) se F ° st = é xe se eS) oe eS ow < Individual categories presented excluding IFRS 16 impact; IFRS 16 impact on individual categories: Cost
Slide 32: Downstream results
Q4 2019 Downstream results W Royal Dutch Shell | Januory 30, 2020 Earnings Q4 2018 to Q4 2019 Earnings mix $ billion $ billion 3 10 2 02 7 5 i = (0.4) 0 0 xe 2 8 2016 2017 & < as Marketing Refining & Trading I Chemicals Individual categories presented excluding IFRS 16 impact; IFRS 16 impact on indi
Slide 33: Financial highlights: IFRS impact
Q4 2019 Financial highlights: IFRS 16 impact Post-IFRS 16 Pre-IFRS 16 aoe ccldig noi cont $123billion $10.8billion « $1.5 billion, as lease payments now reported in CFFF Free cash flow $5.4billion $4.0billion = $1.4 billion, due to higher CFFO Returns Earnings $2.9 billion $3.0 billion" Operating le
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