Shell PLC · LSE:SHEL

Shell — Royal Dutch Shell — Investor Day (June 2016)

80 slides from Shell's investor day presentation, Jun 7, 2016

  1. Slide 1: Capital markets day 2016: Re-shaping Shell

    Capital markets day 2016 Re-shaping Shell, to create a world-class investment case Royal Dutch Shell plc June 7, 2016 “Let’s make the future” Royal Dutch Shell | June 7, 2016

  2. Slide 2: Ben van Beurden, Chief Executive Officer

    Ben van Beurden Chief Executive Officer Royal Dutch Shell plc Royal Dutch Shell | June 7, 2016

  3. 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

  4. Slide 4: Key messages

    Key messages RE-SHAPING PORTFOLIO MANAGING THE SHELL PRIORITIES DOWN-CYCLE  Create a world class  Cash engines  Pulling levers to manage investment case financial framework  today’s free cash flow  Grow free cash flow per  Re-set our costs  Growth priorities share, higher ROCE  deep water an

  5. Slide 5: Breakout Q&A panels

    Breakout Q&A Upstream + Projects & Technology panels  Andrew Brown – Upstream Director  Peter Sharpe – EVP Wells Andrew Brown Peter Sharpe Downstream  John Abbott – Downstream Director  Istvan Kapitany – EVP Retail John Abbott Istvan Kapitany Integrated Gas  Maarten Wetselaar – Integrated Gas D

  6. Slide 6: Substantial + long lasting shifts in energy

    Industry context Global population Growth in oil & gas demand Energy system in transition Substantial + long lasting World needs shifts in energy more energy; less CO2 landscape 2000 2050 From 7 to 9 billion by 2050 Global energy demand to 75% will live in cities double between 2000 & 2050 Customer

  7. Slide 7: "2 degree world"

    “2 degree Global energy mix IEA ‘450’ scenario world” Global energy demand, million boe per day 300 Other renewables Oil 32% Nuclear Coal 29% Bio-energy Hydro Gas 21% 200 13.7 9.4 Coal btoe btoe Bio-energy 10% Energy Primary Nuclear 4% energy consumption Gas 100 supply Renewables 4% Losses + Oil 4.3

  8. Slide 8: "Let's make the future"

    Strategy “Let’s make the future” Strategic Operational Focus portfolio on Reset cost and capital Shell ambition: resilient positions spending Create a  World-class investment case world-class  Relevant in our industry + Invest in advantaged investment case First class execution growing value share

  9. Slide 9: BG deal delivery

    Re-shape Shell BG deal delivery Shell reset Oil price uplift  Synergies: $4.5 billion 2018 >$10 billion  Asset value ahead of expectation  Considerable upside potential:  Oil price recovery  Shell reset Consideration Today Pre-completion view paid Valuation based on forward curves / consensus @

  10. Slide 10: Significant changes delivered

    Track record $35 billion 8% $35 billion $22 billion 2013-15 >> Significant Free cash flow ROACE Dividend & buybacks Divestments changes delivered Capital employed in $ billion, end 2013 / Q1 2016 2013 Today 300 Corporate  BG acquisition: Corporate Deep water + LNG growth accelerated Integrated Gas

  11. Slide 11: Driving strategy in multiple time horizons

    Re-shape Shell Cash engines: Growth priorities: Future opportunities: Driving strategy today 2016+ 2020+ in multiple time Funds dividends + balance sheet Cash engines 2020+ Material value + upside horizons Affordable growth in Competitive + resilient Path to profitability advantaged positions Strong

  12. Slide 12: Cash flow performance

    Capital Employed Cash flow Free cash flow + ROACE Re-shape Shell Cash Engines $23 billion Cash flow $140 billion 12 % ROACE performance $87 billion Net debt movement 2013-15 & other $4 billion Interest & other $4 billion Growth Priorities $24 billion $0 billion 11 % Free $39 billion cash flow Cash d

  13. Slide 13: Capital allocation

    Capital investment Re-shape Shell $ billion 2016 2017-18 Capital $ billion 50 Oil products 3 3-4 allocation -35% Conventional 5 5-6 oil + gas Cash engines Integrated gas 6 4-5 30 Oil sands mining <1 <1 25 25 Deep water 8 6-7 Growth priorities Chemicals 3 3-4 Shales 2 2-3 Future  Reducing capital in

  14. Slide 14: Cash engines

    Re-shape Shell Conventional oil + gas Cash engines  High grade portfolio  Exploration to maintain running room Integrated Gas  Moderate capacity growth rate  Prioritise for cash delivery Oil Products  Strengthen the retained core  Selective marketing growth Oil sands mining  Improve macro res

  15. Slide 15: Integrated Gas from growth priority to cash engine

    Re-shape Shell Liquefaction capacity Integrated Gas Period-end in million tonnes per annum from growth Sakhalin 45 2018 30 priority to cash 15 Sabine Pass engine QG-4 0 2000 2005 2010 2015 Nigeria Oman Brunei Equatorial Atlantic LNG Guinea Malaysia LNG liquefaction volumes LNG Peru Million tonnes pe

  16. Slide 16: Growth priorities

    Re-shape Shell Deep water Growth priorities  Growth in advantaged geology  Brazil + GOM in focus  Multi-billion barrels potential Chemicals  Advantaged feedstock + growth markets  USA + China growth Royal Dutch Shell | June 7, 2016 16

  17. Slide 17: Deliver profitable growth

    Re-shape Shell Chemicals capacity Deep water production Deliver Million tonnes per annum, ethylene Thousand boe per day profitable 8 1000 growth 800 6 600 4 400 2 200 0 0 2015 2020 2015 2020 On-stream Under construction On-stream Under construction FEED  Advantaged feed stocks + Shell technology 

  18. Slide 18: Future opportunities

    Re-shape Shell Shales Future  ~12 billion barrels resources + potential opportunities  Mature to ‘growth priority’ New energies  Energy transition themes  Explore + invest for longer term Royal Dutch Shell | June 7, 2016 18

  19. Slide 19: New energies

    Future opportunities New energies Investment context New energies Mobility Renewables transition growth New fuels Digital Energy Increasing platforms Transition electrification Integrated Connected energy customer solutions Disruptive Greater business customer models choice  Hydrogen & biofuels  W

  20. Slide 20: Expectation: end of decade

    Re-shape Shell 2013-15 ~$90 2019-21 ~$60 Expectation: Capital Free ROACE Capital Free ROACE employed cash flow employed cash flow end of decade ($ bln end ‘15) ($ bln p.a) (%) ($ bln) ($ bln p.a.) (%) Oil products 5 12 >5 ~15 Conventional oil + gas -1 13 ~5 ~10 CASH ENGINES Integrated gas 4 13 >5 ~1

  21. Slide 21: Simon Henry, Chief Financial Officer

    Simon Henry Chief Financial Officer Royal Dutch Shell plc Royal Dutch Shell | June 7, 2016

  22. Slide 22: Financial framework

    Financial framework Cash Performance  Creating value for shareholders through cycle CFFO + Divestments  Pulling levers today to manage the financial framework Pay-out Investment Dividends + Attractiveness, Buybacks resilience  Multi-year timescales and planning Balance Sheet  Positioning to cove

  23. Slide 23: Portfolio

    Integration with BG LNG Oil and gas production Portfolio Equity liquefaction capacity in million tonnes per annum Million boe per day 50 4 25 2 0 0 Shell + BG Exxon Chevron Total BP Exxon Shell + BG Chevron Total BP 2015 2018 Liquids Gas Oil & gas proved reserves - 2015 billion boe 30 20  BG transa

  24. Slide 24: BG portfolio is delivering

    Integration with BG  BG production Q1 2016: 0.8 mboed (+25% Q1-Q1) BG portfolio is delivering  Asset availability 93%  Reducing capital spend Increasing production Reducing capital investment Thousand boe per day $ billion +25% 800 3 600 2 400 1 200 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q

  25. Slide 25: Integration timeline

    Integration with BG Integration 15 February 2016 End 2016 timeline BG acquisition Integration completed completed August 2015 Day 30 Day 60 Day 90 Today  Joint integration  Deliver safe, efficient operations  Combine best practices and retain best staff planning team established  Management anno

  26. Slide 26: Synergies update

    Integration with BG Synergies update Synergies  Corporate, administrative, $ billion update SG&A organisation and IT operational efficiencies 4 Additional synergies Procurement  Procurement spend1 3 Marketing & Reduced costs  2 shipping 1 Exploration  Reduced activity via BG combination 0 2016 2

  27. Slide 27: Cash flow priorities 2016-18

    Manage down-cycle Cash flow 1 2 3 priorities 2016-18 Priorities Buybacks Debt reduction Dividends for cash & capital investment Reduce capital Reduce Deliver new Divestments investment operating costs projects  Powerful levers to underpin financial framework Royal Dutch Shell | June 7, 2016 27

  28. Slide 28: Divestments

    Manage down-cycle 2016-18 Divestments program Divestments $ billion  Portfolio simplification and 30 high-grading 2016-18 announced:  Showa Shell  Earmarked for disposal  Maui pipeline 20  Denmark marketing   Up to10% of oil + gas  Malaysia refining production  Motiva JV end  ~5-10 oil + g

  29. Slide 29: Deliver new projects

    Manage down-cycle  Significant oil & gas + Deliver new Downstream production under Thousand boe per day* Million tonnes per annum projects construction 1200 15  Capex to free cash flow 800 10  High margin / price upside 400 5 barrels 0 0 2014-15 2016-17 2018+ 2014-15 start-ups 2018+ start-ups 201

  30. Slide 30: Significant reduction in project flow

    2013 2014 2015 2016 2017+ Track record Oil sands mining Carmon Creek  Significant Shales Deep water Shales Appomattox  reduction in Integrated Gas Bonga South West Arrow Greenfield LNG  project flow Elba LNG Browse LNG  US GTL  Wheatstone LNG  Abadi redesign MLNG Dua JVA  LNG Canada Lake Char

  31. Slide 31: Reduced exploration spend

    Reduced Exploration expenditure exploration $ billion 8 spend 7 6 5.5 5  $3 billion reduction 4 ~2.5 ~2.5 2 0 2013 2014 2015 2016E 2017/18 avg Heartlands Frontier BG  Material reduction in exploration spend  BG acquisition + recent Shell discoveries reduces our requirement for exploration  More

  32. Slide 32: Lower & more predictable capital investment

    Manage down-cycle Capital investment Lower & more $ billion; excludes BG acquisition in 2016 predictable 60 58 capital 47 -35% investment 40 36 $25-30 billion 29 20 0 2013 2014 2015 2016E 2017 - 20 avg Base + short cycle Committed growth projects Growth options/exploration BG  Planning for $25-$30

  33. Slide 33: Reduce operating cost

    Manage down-cycle Operating cost Reduce $ billion operating cost 60 50 48 46 -20% 40 40 20 $40 billion 0 2013 2014 2015 end-2016 run-rate Shell BG  Substantial reductions delivered  “Lower for ever” mindset + BG synergies  Staff, supply chain + contractors  Divestments , growth, FX impacts Royal

  34. Slide 34: Pulling levers to manage financial framework

    Manage down-cycle 2016-18 levers Pulling levers to Reduce Reduce manage Divestments capital investment operating costs Deliver new projects financial framework 2015 baseline: 2017-2018 $ billion Shell + BG 2016 potential Trend to 40  Reducing our cash break-even Operating costs 46 Multi-billion p.a

  35. Slide 35: John Abbott, Downstream Director

    John Abbott Downstream Director Royal Dutch Shell plc Royal Dutch Shell | June 7, 2016

  36. Slide 36: 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  Sele

  37. Slide 37: Downstream financial performance

    Downstream Earnings + ROACE Cash flow financial $ billion 10 % $ billion 15 20 performance 10 5 10 5 0 0 0 2012 2013 2014 2015 16Q1 2012 2013 2014 2015 16Q1 4Q rolling 4Q rolling Marketing Chemicals Cash flow excluding working capital Refining & trading ROACE (RHS) Working capital movements Free cas

  38. Slide 38: Oil Products

    Financial performance Stronger results from smaller portfolio Oil Products Million barrels/day $ billion $ per barrel  Advantaged feedstock + supply 4 8 8  Asset sales -20% -30% +25%  Products + brand 3 6 6 2 4 4 1 2 2 0 0 0 Refining capacity Marketing volumes 2007 2015 2007 2015 Oil products ear

  39. Slide 39: Improving our Downstream footprint and performance

    Improving our Portfolio change Asset sales Downstream Backbone / grow: $ billion footprint and  Chemicals  China 4  Australia DS performance  LNG for transport  Premium fuels + lubes  Italy DS  Refinery crude flexibility  MLP  others  others  Denmark  3  MLP Fix:  Showa Shell  Netherl

  40. Slide 40: Optimization of footprint

    Oil Products Motiva JV restructuring Showa Shell divestment Optimization Terminals (26) – Saudi Aramco of footprint Terminals (9) – Shell Ethanol Hub Refinery Showa Shell Sekiyu K.K. Kawasaki Refinery, Japan Port Norco Arthur Convent  Exit from JV with Saudi Aramco  Sale of ~33% of Showa Shell Sek

  41. Slide 41: Shell Oil Products – marketing

    Investing in selective growth Shell Oil Products – marketing Marketing - ROACE Marketing – free cash flow Global retail - Global lubes - premium product penetration premium products penetration % $ billion % % 30% 5 30% 30% 4 20% 20% 20% 3 2 10% 10% 10% 1 0% 0 0% 0% 2012 2013 2014 2015 16Q1 2012 201

  42. Slide 42: Chemicals

    Growth priority Chemicals demand outlook Geographic balance Chemicals Million metric tonnes1 Million metric tonnes Ethylene and Propylene 400 North America 2016 Europe 300 Asia Pacific & Middle East 200 Feedstock balance Million metric tonnes Ethylene and Propylene 100  Strengthening our core 2016

  43. Slide 43: Chemicals

    Growth priority Ethylene capacity Under construction Chemicals Million metric tonnes Pennsylvania  425,000 tonnes additional cracker Alpha Olefins capacity Bukom 8 start-up Nanhai I USGC Nanhai II Geismar, USA restructuring 6  New liquids cracker and derivatives units  Capacity: ~1.2 million tonn

  44. Slide 44: Downstream competitive landscape

    Downstream Downstream ROACE Oil Products ROACE competitive % % 30 landscape 30 20 20 10 10 0 0 2011 2012 2013 2014 2015 Q1 2016 2011 2012 2013 2014 2015 Q1 2016 Shell Peers Chemicals ROACE Brand % Global brand preference 30 20% 15% 20 10% 10 5% 0 0% 2011 2012 2013 2014 2015 Q1 2016 2011 2012 2013 20

  45. Slide 45: Andrew Brown, Upstream Director

    Andrew Brown Upstream Director Royal Dutch Shell plc Royal Dutch Shell | June 7, 2016

  46. Slide 46: Upstream

    Upstream Cash engine Growth priorities Future opportunities Conventional oil & gas Deep water Shales  Maintain resilience  Advantaged growth,  Large resource base  Track record + competitive portfolio  Drive improvement  Future growth priority  Lowering cost further  Improve competitiveness

  47. Slide 47: Upstream financial performance

    Upstream Earnings by strategic theme Earnings by geography financial $ billion $ per barrel 120 $ billion 10 10 performance 60 5 5 0 0 0 -5 -60 -5 2013 2014 2015 16Q1 2012 2013 2014 2015 16Q1 4Q rolling 4Q rolling Conventional oil + gas Shales Rest of the world Americas Deep water Other Brent (RHS)

  48. Slide 48: Reducing costs + improving performance

    Reducing costs Upstream costs + improving $ billion 15 $ per barrel 30 -8% performance -15%  Reduce costs + headcount 2014+ Upstream  >5,000 staff + contractor positions 10 20  Exit ‘tail’ assets  Potentially 5-10 country exits 5 10 - 0 2014 2015 2016E Operating costs Unit cost BG Royal Dutch Sh

  49. Slide 49: Upstream: Fit for the future

    Upstream Conventional oil & gas Deep water Shales “Fit for the future” Availability Availability Unit operating costs $/boe 100% 100% 20 -35% 80% 80% 10 60% 60% 40% 40% 0 0 15 30 45 60 0 10 20 2014 2015 2016E Direct unit operating costs $/boe1 Direct unit operating costs $/boe1 2014 2015 2016 Q1 201

  50. Slide 50: Americas shales

    Americas shales Average drill and complete costs – LRS wells Resources Maturing a new growth option $ million per well ~12 billion boe -50% 2020+ 12 Western Canada Gas Western Canada LRS 8 Appalachia 4 Reserves Permian Contingent resources - 0 Argentina development pending 2013 2014 2015 2016 Q1 Hay

  51. Slide 51: Deep water

    Deep water Reducing drilling costs Lowering capital intensity Shell + BG deep water growth Example Gulf of Mexico Capital efficient + profitable # drilling days $ thousand $ per boe break-even cost (examples) Thousand boe per day growth Variable spread 75 rate + drilling 1000 200 750 -30% materials

  52. Slide 52: Deep water Brazil: step change in Shell position

    Pre-salt FPSOs delivery1 Deep water Brazil: On-stream Pending development On-stream Replicant owned step change in Exploration 6. Iracema N. chartered Chartering under Chartered Shell position evaluation 5. Iracema S. 4. Sapinhoá N. Berbigão 3. Lula NE. Lapa Libra EWT /Sururu2 Lula W. Libra 2. Sapin

  53. Slide 53: Deep water Gulf of Mexico

    Kepler North Coulomb Appomattox Deep water Gulf Production Thousand boe per day  2016 discovery  ~20 kboe/d  ~175 kboe/d potential Drilling 300  Tie-back to Na Kika  Tie-back to Na Kika  ~650 million boe resources of Mexico moratorium  Shell 50%  Shell 100% (operator)  Shell 79% (operator)

  54. Slide 54: Conventional oil + gas

    Conventional oil Selective growth + gas Thousand barrels per day 300 Clair ph2 Tempa Rossa others Significant cash engine for Shell 200 Corrib Kashagan Sabah gas Schiehallion 100 Knarr G-U ph2 others 0 2014-15 2016-17 2018-19 ~2020 Schiehallion FPSO Start-ups: 2014-15 2016-17 2018+ Capital investmen

  55. Slide 55: Track record + exploration strategy

    2016 targets Track record + Heartlands UK Russia exploration Netherlands Germany Frontier Canada Albania strategy USA Egypt Oman China Trinidad &Tobago Nigeria Brunei Malaysia Tanzania Prospect Time to size production Resources added 2010-2015 (million boe) (years) Heartland Resources (billion boe)

  56. Slide 56: Upstream

    Upstream Cash engine Growth priorities Future opportunities Conventional oil & gas Deep water Shales  Maintain resilience  Advantaged growth,  Large resource base  Track record + competitive portfolio  Drive improvement  Future growth priority  Lowering cost further  Improve competitiveness

  57. Slide 57: Maarten Wetselaar, Integrated Gas Director

    Maarten Wetselaar Integrated Gas Director Royal Dutch Shell plc Royal Dutch Shell | June 7, 2016

  58. Slide 58: Integrated Gas

    Integrated Gas Cash engine Future opportunities Integrated Gas New energies LNG Gas-to-Liquids Oil + gas production Sakhalin LNG Liquefaction Pearl GTL Qatargas 4 Marketing & trading Muscat LNG Regasification  Focus on:  Cash + returns Hazira, India: LNG jetty  Create + secure new demand  IOC le

  59. Slide 59: Integrated Gas financial performance

    Integrated Gas Earnings Capital employed financial $ billion $91 billion as at Q1 2016 performance 10 5 In service Under construction 0 2012 2013 2014 2015 2016 Q1 4Q rolling Cash flow + ROACE LNG plant availability $ billion % % 15 30 100 10 20 90 5 10 80 0 0 70 2012 2013 2014 2015 2016 Q1 Q115 Q21

  60. Slide 60: LNG supply + demand

    LNG supply + Global LNG supply + demand outlook Demand growth drivers 2015-2030 demand Million tonnes per annum 2030 ~10% Downstream LNG 500 ~15% New LNG markets 400 300 ~20% Newly importing LNG markets* 200 100 ~55% Established LNG markets 0 2000 2005 2010 2015 2020 2025 2030 In operation Under con

  61. Slide 61: LNG: Shell + BG

    LNG: Shell + BG Sakhalin Sabine Pass QG-4 Oman Nigeria Brunei Atlantic LNG Equatorial Guinea Malaysia Equity capacity LNG Peru Gorgon Long-term offtake agreement NWS Pluto QCLNG Spot offtake in 2015 Deliveries in 2015 LNG volumes Liquefaction capacity Million tonnes per annum Capacity at year-end in

  62. Slide 62: LNG pricing

    LNG pricing Shell LNG sales + pricing linkage Regional gas prices Million tonnes per annum (2015 basis, Shell +BG) $ per mmbtu 60 25 50 20 40 15 30 Term contracts 10 20 (2-20 years) ~80% 5 10 0 0  Continued demand for oil + Sources Deliveries 2005 2007 2009 2011 2013 2015 gas hub linked LNG pricing

  63. Slide 63: Developing new LNG markets

    Developing new  Portfolio of opportunities to Growing and diversifying market: Asia LNG markets market LNG Million tonnes per annum 300  Regas terminals 200  Create a new value chain in 100 LNG to transport 0 2000 2005 2010 2015 2020 2025 Japan Taiwan China Malaysia Korea India Indonesia Others T

  64. Slide 64: Moderating our growth rate: Shell + BG LNG

    Moderating our Options FEED Under construction On stream LNG sales growth rate: Shell + BG LNG Abadi Arrow Lake Charles Gorgon T2-3 Gorgon T4 LNG Canada Prelude NLNG T7 Sabine Pass T2-4* Sakhalin T3 Prince Rupert Elba* Browse QCLNG T3 others* Tanzania LNG Prelude 2018 Option recycled Gorgon 2016  R

  65. Slide 65: New energies

    New energies Exploring new opportunities New fuels Integrated Connected energy customer solutions New fuels Integrated energy Connected customer  Winning company in the solutions energy transition  Cleaner transportation  NL + USA wind  Connected mobility  Established credentials:  Biofuels +

  66. Slide 66: Ben van Beurden, Chief Executive Officer

    Ben van Beurden Chief Executive Officer Royal Dutch Shell plc Royal Dutch Shell | June 7, 2016

  67. Slide 67: Transformation

    2013-2015 2019-2021 Transformation average average ROACE 8% ~10% CREATE A WORLD CLASS INVESTMENT CASE Organic free cash flow $5 billion p.a. $20-25 billion p.a. Brent ~$90 ~$60 Improved capital Capital efficiency: Less cost + fewer Portfolio growth: efficiency: reduced 2013 spending people with BG t

  68. Slide 68: Questions & Answers

    Questions & Answers Royal Dutch Shell | June 7, 2016

  69. Slide 69: Projects under construction

    Start up Project Country Shell share Peak LNG 100% Products Legend Theme Shell Projects under (direct & Production Capacity indirect) % 100% mtpa Operated construction kboe/d 2016-17 Forcados Yokri Interagted Project (FYIP) Nigeria 30 50  Conventional oil + gas  Gbaran-Ubie Ph2 Nigeria 30 150  Co

  70. Slide 70: Pre-FID options

    Phase Project Country Shell share Peak LNG 100% Products Legend Theme Shell Pre-FID options (direct & Production Capacity indirect) % 100% mtpa Operated kboe/d SELECT Kaikias United States 100 40  Deep water  Libra pilot FPSO Brazil 20 150  Deep water LNG Canada T3-4 Canada 50 13  Integrated gas

  71. Slide 71: HSSE performance

    HSSE Goal Zero on safety Spills - operational performance Injuries – TRCF/million working hours million working hours Volume in thousand tonnes 10 4 800 5 2 600 0 400 0 '05 '07 '09 '11 '13 '15 16Q1 '05 '07 '09 '11 '13 '15E 16Q1 TRCF Working hours (RHS) Energy intensity – refineries Process safety En

  72. Slide 72: Financial performance

    Manage down-cycle Earnings + ROACE Cash flow Financial $ billion % $ billion $ billion performance 30 15 45 45 20 10 30 30 10 5 15 15 0 0 0 0 2012 2013 2014 2015 16Q1 2012 2013 2014 2015 16Q1 -10 4Q rolling -5 -15 4Q rolling -15 Upstream Downstream ROACE (RHS) CFFO Free cash flow (RHS) Integrated ga

  73. Slide 73: Deliver new projects

    Deliver new Project status projects Construction time elapsed % Pennsylvania cracker Project management Geismar AO4 Pernis solvent de-asphalting Appomattox Baronia/Tukau Timur Coulomb Rabab Harweel Integrated Project Nanhai China Chemicals Southern Swamp Tempa Rossa Prelude FLNG Berbigao Clair Ph2 G

  74. Slide 74: Permian Delaware Basin

    NEW MEXICO Permian Wolfcamp EUR improvement Delaware Basin % 300 +130% 200 100 0 2013 2014 2015 TEXAS Wolfcamp well cost improvement SHELL LEASES $ million 20  Premier LRS play in North America -60%  ~300,000 net acres with >5,000 well locations 10  Multiple areas de-risked + ready for developmen

  75. Slide 75: Marketing led growth

    Oil products: Marketing led growth Europe 9,000 North America 16,000 Retail presence Marketing growth # Retail sites  Marketing led growth Africa 2,000  Growth in China, India, East 9,000 Indonesia, Russia and Latin America 7,000 Mexico  Retail presence in 70 countries + 43,000 sites Royal Dutch

  76. Slide 76: Improving our refining footprint

    Refining projects Canada - Scotford NW Europe – Pernis Improving our refining footprint Scotford, Canada Pernis, The Netherlands  Quest carbon capture + storage (CCS) start-up 2015  Pernis: aromatics project  High return projects  Hydrocracker debottlenecking  Pernis: solvent de-asphalting impr

  77. Slide 77: Oil sands mining

    Oil sands mining Energy intensity Canada AOSP Shell unit operating costs GJ per tonne produced $ per barrel 60 6 40 -50% 4 20 2 0 0 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 Q116 Cash operating cost excl. energy DD&A (clean) Energy  Focus on emissions management  Successful turna

  78. Slide 78: LNG: Australia

    LNG: Australia North West Shelf (1989) Queensland Curtis (2015) Gorgon LNG (2016) Prelude FLNG (2018)  16.3 mtpa LNG  8.5 mtpa LNG  15.6 mtpa LNG  5.3 mtpa LNG + NGLs  First Australian LNG  2010: FID  2009: FID  2011: FID  Operating since 1970s  2014: first LNG  2016 : first LNG  LNG ves

  79. Slide 79: BG portfolio: Australia + Brazil

    Integration with BG Queensland LNG Brazil pre-salt BG portfolio: Thousand boe per day # Thousand boe per day FPSO Cidade de Maricá Cidade Itaguaí Q1 2016 Australia + Brazil 200 T2 start up Nov 2015 40 200 Q3 2015 150 30 150 1st LNG Train 1 Dec 2014 100 20 100 50 10 50 0 0 0 2015-Jan 2016-Jan 2014-Ja

  80. Slide 80: Capital markets day 2016: Re-shaping Shell

    Capital markets day 2016 Re-shaping Shell, to create a world-class investment case Royal Dutch Shell plc June 7, 2016 “Let’s make the future” Royal Dutch Shell | June 7, 2016

Royal Dutch Shell — Investor Day (June 2016) on 6ix