Slide 1: Shell Insights: Integrated Gas Business Update
#PoweringProgress @ } \ Shell ple WAEL SAWAN Feb 2022 INTEGRATED GAS, RENEWABLES AND ENERGY SOLUTIONS DIRECTOR SHELL INSIGHTS: INTEGRATED GAS BUSINESS UPDATE
Slide 2: Definitions & Cautionary Note
DEFINITIONS & CAUTIONARY NOTE {Adjusted Eorings isthe income attributable to Shell ple shareholders fr the period, adjusted forthe aftertax effect ofl pice changes on inventory and for identified items. In this presentation, “earnings” refers to "Adjusted Earnings” unless stated otherwise. Adjusted
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: Bringing an Unmatched Portfolio of Clean Energy Solutions
BRINGING AN UNMATCHED PORTFOLIO OF CLEAN ENERGY SOLUTIONS TO ENABLE CUSTOMERS’ DECARBONISATION JOURNEYS GROWTH PILLAR: TRANSITION PILLAR: UPSTREAM PILLAR: THE FUTURE OF ENERGY ENABLING OUR STRATEGY FUNDING OUR STRATEGY / Marketing / Renewables and Energy Solutions / Integrated Gas _/ Chemicals and P
Slide 5: LNG Outlook
LNG OUTLOOK ENERGY SECURITY, EMISSIONS AND ECONOMIC GROWTH IN ASIA TO DRIVE FUTURE LNG DEMAND = Gas has an important role in the journey to netzero - as a partner to renewables for grid stability and an immediate option to lower emissions in hardto-lectrify energy demand sectors = LNG needed for dec
Slide 6: Integrated Gas Strategy
INTEGRATED GAS STRATEGY WORLD LEADER IN LNG: RESILIENT CASH GENERATION INTO A LOWER CARBON FUTURE Lead the market = Leverage world-class innovation, flexibility and LNG trading capabilities = Value chain optimisation from customers to assets creates superior value delivery = Grow footprint in low ca
Slide 7: Lead the Market: Creating Value with an Unmatched Portfolio
LEAD THE MARKET CREATING VALUE WITH AN UNMATCHED PORTFOLIO AND INTEGRATED NETWORKS Leading the global LNG market = Supplied 64 mtpa to customers in 2021. Leading LNG supplier to China = World's largest trading portfolio, with >50 LNG carriers on charter delivering to customers = Largest global LNG b
Slide 8: Lead the Market: Integration Delivers Value to Customers
LEAD THE MARKET INTEGRATION DELIVERS VALUE TO CUSTOMERS AND SHELL IN KEY COUNTRIES AND VALUE CHAINS Integration with Marketing and Australian customer energy demand Main supplier to China, the largest Trading in GTL met with integrated supply chain and fastest growing LNG market = Proprietary Shell
Slide 9: Lead the Market: Supporting Customer Decarbonisation
LEAD THE MARKET SUPPORTING CUSTOMER DECARBONISATION { i] > | | Offering low carbon products to our customers = Industry and heavy transport decarbonisation through investments in hydrogen = In China for the endto-end value chain = In Germany for the Rhineland electrolyser = Road transport can be dec
Slide 10: Run the Business: Good Performance in Multiple Assets in 2021
RUN THE BUSINESS GOOD PERFORMANCE IN MULTIPLE ASSETS IN 2021, OTHERS CATCHING UP ON MAINTENANCE AND EXPERIENCING SUPPLY DISRUPTIONS Shelkmanaged vessels remained virtually Covid- free since start of pandemic Swift global best practice sharing on managing operations safely Full compliance with emergi
Slide 11: Run the Business: Good 2021 Results
RUN THE BUSINESS GOOD 2021 RESULTS OVERCOMING SUPPLY DISRUPTIONS AND PRICE VOLATILITY = Consistent and resilient |G earnings over the past 5 years = 2021 showing strong results however with significant quarterly results volatility Volatile price environment throughout 2021 Term supply disruptions wi
Slide 12: Run the Business: Addressing Operational Greenhouse Gas Emissions
RUN THE BUSINESS ACTIVELY ADDRESSING OPERATIONAL GREENHOUSE GAS EMISSIONS Cutting operational emissions = Pearl GTL, Qatar: significant emissions reductions already achieved, further reductions and other improvements planned through innovative catalysts = QGC, Australia: reduced venting from dehydra
Slide 13: Grow the Business: Optimising Capital to Create Value
GROW THE BUSINESS OPTIMISING CAPITAL TO CREATE VALUE Unit technical cost reduced $ per MMBtu 8 6 4 2 0 eee 2015 2016 2017 2018 «2019 2020 2021 Structural decrease in cost = UTC stable below target of $5/MMBtu set in 2015 = $4 billion per annum selective investment in competitive LNG assets, includin
Slide 14: Shell ple | February 21, 2022
Shell ple | February 21, 2022
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Slide 16: Integrated Gas Portfolio & Major Projects
INTEGRATED GAS PORTFOLIO & MAJOR PROJECTS Peak LNG . Shell . ay Shelk Pr t C ducti ns uy shore pfedusion capacity porated Under construction ~ Startup 2022-2023 Arrow Surat Gas Australia 50 backfil Colibri Trinidad & Tobago 87 backfil v 5 i il INGC O Dragon‘ mega Sakhalin C2rgen=Jansz Australia 25 b
Slide 17: Integrated Gas: Update SD21 Targets - Progress Made
INTEGRATED GAS UPDATE SD21 TARGETS - PROGRESS MADE Targets ~20% Opexreduction by 2022 vs 2019 3 mtpa Develop new LNG markets by 2025 < $5/MMBtu Unit Technical Cost 14% - 18% Average project IRR WwW) Shell ple | February 21, 2022 Progress Underlying 2021 IG Opex 15% lower than 2019 On track to delive
Slide 18: Definitions
DEFINITIONS Average Integrated Gas project IRRs The capital weighted average project forwarclooking unlevered expected rate of return where NPV equals zero, calculated at FID for pref ID projects. For Upstream and Integrated Gas price assumption of $60 per barrel Brent real terms 2020. Adjusted Earn