Shell PLC · LSE:SHEL
Shell — Q2 2021 Earnings Presentation
29 slides from Shell's earnings presentation, Jul 29, 2021
Slide 1: Second Quarter 2021 Results
#PoweringProgress L ye" m @) oe SECOND QUARTER 2021 RESULTS STEPPING UP DISTRIBUTIONS TO OUR SHAREHOLDERS Royal Dutch Shell ple July 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: Powering Progress: Q2 2021 Key Messages
POWERING PROGRESS Q2 2021 KEY MESSAGES = Building strong customer partnerships across sectors to move to net zero = Dividend rebased to 24 US cents per share = Progressive dividend policy remains = Startup of Refhyne, Europe’s largest PEM unchanged electrolyser, producing green hydrogen in = Share b
Slide 5: Capital Allocation - Next Phase
CAPITAL ALLOCATION - NEXT PHASE TARGET SHAREHOLDER DISTRIBUTIONS OF 20-30% OF CFFO Clear capital allocation framework Operationalising the framework = $19-22 billion Cash capex to sustain our strategy Marketing ~$3 billion; Renewables and Energy Solutions $2-3 billion; Integrated Base Cash capex Gas
Slide 6: 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 7: Building Strong Customer Partnerships to Move to Net Zero
POWERING PROGRESS BUILDING STRONG CUSTOMER PARTNERSHIPS TO MOVE TO NET ZERO BHP LNG supply agreement to fuel BHP’s chartered vessels to reduce emissions, supporting the decarbonisation of the shipping industry Microsoft Progress on alliance with Shell providing Microsoft 300+ MW of renewable energy,
Slide 8: 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-Power™ + Lubricants ™ New locations Decarbo
Slide 9: Renewables and Energy Solutions
RENEWABLES AND ENERGY SOLUTIONS INTEGRATED CLEAN ENERGY SYSTEMS: HIGHER FUTURE RETURNS Targets Q2 progress examples = Atlantic Shores, 50:50 JV with EDF, providing 1.5 GW of renewable energy to 700 thousand homes in New Jersey, US Integrated Power & Becoming o lealng provider of clean >560 TWh Power
Slide 10: 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 Grow the business ™ Selective investment in competitive LNG. assets ™ Greater value, volume and option
Slide 11: Chemicals and Products
CHEMICALS AND PRODUCTS INTEGRATED ENERGY AND CHEMICALS PARKS DELIVERING LOWER- CARBON PRODUCTS Chemicals Parks = Delivering synergies, bringing customers and assets together Focus on sustainable chemicals = Developing sustainable product offering Grow chemicals as an enabler = Increasing margins thr
Slide 12: Transforming Refining Portfolio into 5 Energy and Chemicals Parks
CHEMICALS AND PRODUCTS TRANSFORMING OUR REFINING PORTFOLIO INTO 5 INTEGRATED ENERGY AND CHEMICALS PARKS Number of refineries 54 9 14 8 5 i Fredericia 0 MScotford Pernis lll PCK Schwedt Puget Sound ill mSottic Rheinland» Miro Martinez il | omnee Newel Mobile Al Jubail 2004 = 2018.»=— 2020» 22021-2025
Slide 13: Upstream
UPSTREAM DELIVERING THE ENERGY OF TODAY WHILE FUNDING THE ENERGY OF TOMORROW Focusing the portfolio ™ Maximising value from lean positions: develop into core, harvest for cash or divest ™ Focusing exploration on core positions Delivering competitively O lesdingdacesercrd celina projects portfolio ™
Slide 14: Portfolio: Divestment Proceeds in First Half 2021
PORTFOLIO DELIVERING DIVESTMENT PROCEEDS OF $4.7 BILLION IN THE FIRST HALF OF 2021 Bl Duvernay shales gw 9707 milion Puget Sound $350 million Mobile refinery $75 million Deer Park refinery $596 million Hi Completed divestments Hi Announced divestments, not yet completed WwW) Royal Dutch Shell | July
Slide 15: HSSE Performance
H1 2021 HSSE PERFORMANCE Goal Zero on safety Operational spills Injuries (TRCF) per million working hours Million working hours 2 800 1 400 0 0 2010 2012 2014 2016 2018 2020 = TRCF lll Working hours (RHS) Upstream flaring Thousand tonnes # of spills 10 250 5 S\N 0 0 2010 2012 2014 2016 2018 2020 = V
Slide 16: Q2 2021 Financial Results
Q2 2021 FINANCIAL RESULTS STRONG RESULTS DRIVEN BY ROBUST e272 02 eve tage Bre nu pice OPERATIONS AND RESILIENT PORTFOLIO $3.4 billion $5.5 billion $13.5 billion $14.2 billion $4.4 billion $9.7 billion $65.7 billion WwW) Royal Dutch Shell | July 29, 2021 $69/bbl « Identified items include posttax im
Slide 17: Q2 2021 Financial Results: Strong Cash Conversion
Q2 2021 FINANCIAL RESULTS STRONG CASH CONVERSION Adjusted Earnings Q1 2021 to Q2 2021 Cash conversion Q2 2021 $ billion ° 0.2 re) — oe CI — = => 4 01 -0 ~O 2 ie} a 2 é > a se re) o s oo os o WwW) Royal Dutch Shell | July 29, 2021 $ billion 16 1.0 0.8 12 . — a 6.0 [| (0.3) (0.8) 12 8 08 | | 4 (o) ~ <
Slide 18: Strong Cash Flow Generation Resulting in Net Debt Reduction
Q2 2021 FINANCIAL RESULTS STRONG CASH FLOW GENERATION RESULTING IN NET DEBT REDUCTION Net debt Q1 2021 to Q2 2021 Working capital movements Q2 2021 $ billion $ billion 80 0 44 13 et ee 60 oe (14.2) (1.3) of ° , LJ — (2.4) (0.1) 20 3 fe) 4 st a RS 2 sf > > ° $ > ee e 8 aN se £ F&F FF SC Sh KF YP A ws
Slide 19: Integrated Gas, Renewables and Energy Solutions
Q2 2021 FINANCIAL RESULTS Quarterly Databook available on www.shell.com/investors INTEGRATED GAS, RENEWABLES AND ENERGY SOLUTIONS Q3 2021 outlook Adjusted Earnings Cash conversion Q2 02 16 5 = Production is expected to be approximately 03 00 4 i! P =o or) 870-920 thousand boe/d due to the impact of
Slide 20: Upstream
Q2 2021 FINANCIAL RESULTS UPSTREAM Quarterly Databook available on www.shell.com/investors Adjusted Earnings Cash conversion Q2 Q3 2021 outlook ae = Production is expected to be approximately 35 _ - ; || 7 54 2,100 - 2,250 thousand boe/d, reflecting lower 09 seasonal gas demand. & § : Z 3 * oe 25 ss
Slide 21: Oil Products
Q2 2021 FINANCIAL RESULTS OIL PRODUCTS Adjusted Earnings Cash conversion Q2 Quarterly Databook available on www.shell.com/investors Q3 2021 outlook $ billion $ billion & » ee e + $ fs os & £ DY Oe xX a - of a oe = & & eo ¢ es & oe oe & gh FS FF KS ss s oF sx Ff S s ie ua we FF 6 s * e e é = Strong M
Slide 22: Chemicals
Q2 2021 FINANCIAL RESULTS | CHEMICALS Bus pashan Adjusted Earnings Cash conversion Q2 Q3 2021 outlook = Manufacturing plant utilisation is expected to be x0 3 wo ue 6 1,225 anrately FOR 70 me eo veg 06 1006 22 2 gy approximately 77% - 85%. § . 40 82 5 a | _ = Sales volumes are expected to be approxi
Slide 23: Cash Potential: Integrated Business Model Delivering Value
CASH POTENTIAL INTEGRATED BUSINESS MODEL DELIVERING VALUE Balanced CFFO excluding working capital Track record of sector-leading CFFO $ billion 50 40 | | | | i ; ; 1 S 6 ° 2015 2016 2017 2018 2019 2020 HI Downstream _ [ll Integrated Gas Il Upstream WwW) Royal Dutch Shell | July 29, 2021 @2 2021 4Qro
Slide 24: 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 “Ke Unie contaon- Sup 2009 Wi Kazakhstan Jerun Malaysia 30 95 Mero 2 [A] Brazil 20 180 Perm
Slide 25: 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 26: Chemicals and Products Portfolio & Major Projects
CHEMICALS AND PRODUCTS PORTFOLIO & MAJOR PROJECTS Project Country Shell Products Shell share % operated Pennsylvania Petrochemicals yea a en ee ee, Complex -5 mtpa Polyethy M Pefeiss Shell Bovarius USA 100 Renewable Fuels- RNG Scotford il lossmorran @ a : Shell Junction City USA 100 Renewable Fuels-
Slide 27: A Customer-Led Integrated Energy Offering
t A CUSTOMER-LED INTEGRATED ENERGY OFFERING Shell offers integrated solutions to customers - from biofuels, to hydrogen, solar and wind - while using nature and technology to capture emissions from hardto-abate sectors. Here is a selection of our activities. & Mobility “CE Energy solutions rayne @ S
Slide 28: Upcoming and Past Events
Upcoming events Past events 28 October Q3 2021 results Annual ESG update Remuneration roadshow Q1 2021 LNG outlook and IG strategy Strategy Day 2021 Enhanced Quarterly Disclosures Shell Insights: Upstream Strategy } . 3) A WwW) Royal Dutch Shell | July 29, 2021 ©, Other useful links: Annual and Quar
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