2010 ir factsheet english

8/9/2019 2010 Ir Factsheet English

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ROYAL DUTCH SHELL plc2010 INVESTOR FACTSHEET


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Upstream International manages the upstreambusiness outside the Americas. It searches or and recoverscrude oil and natural gas, liquefes and transports gas and

operates the upstream and midstream inrastructurenecessary to deliver oil and gas to market. UpstreamInternational also manages the global LNG business andthe wind business in Europe. The activities are organisedwithin geographical units, some business-wide managedactivities and supporting activities.

Upstream Americas manages the upstream business inNorth and South America. It searches or and recoverscrude oil and natural gas, liquefes and transports gasand operates the upstream and midstream inrastructurenecessary to deliver oil and gas to market. Upstream

Americas also extracts bitumen rom oil sands that isconverted into synthetic crude oil. Additionally, it managesthe US based wind business. It comprises operationsorganised into business-wide managed activities andsupporting activities.

Downstream manages Shells manuacturing, distributionand marketing activities or oil products and chemicals.

These activities are organised into globally managedclasses o business, including chemicals, some regionallyand globally managed activities and supporting activities.

Manuacturing and supply includes refning, supply andshipping o crude oil. Marketing sells a range o productsincluding uels, lubricants, bitumen and liquefed petroleumgas (LPG) or home, transport and industrial use. Chemicalsproduces and markets petrochemicals or industrialcustomers, including the raw materials or plastics, coatingsand detergents used in the manuacture o textiles, medicalsupplies and computers. Downstream also trades Shellsow o hydrocarbons and other energy related products,supplies the Downstream businesses, markets gas andpower and provides shipping services. Downstream alsooversees Shells interests in alternative energy (excluding

wind) and CO2 management.

Projects & Technoloy manages the delivery o Shellsmajor projects and drives the research and innovation tocreate technology solutions. It provides technical servicesand technology capability covering both Upstream andDownstream activities. It is also responsible or providingunctional leadership across Shell in the areas o saetyand environment and contracting and procurement.

OUR BUSINESS

2 ROAL DUTC SELL PLC

gAS AND

ELECTRICITY

n Industrial use

n Domestic use

REFINED OIL

PRODUCTS

n (Bio) Fuelsn Lubricantsn Bitumen

n Liquefedpetroleum gas

CHEICAL

PRODUCTS

USED FOR

n Plastics

n Coatings

n Detergents

A

B

C DE

F

H

J

K

I

L

Ng

n Exploring or oil and gas A

n Developing felds B

n Producing oil and gas C

n Mining oil sands D

n Extracting bitumen E

n Liqueying gas by cooling (LNG) F

n Regasiying LNG G

n Converting gas to liquid products

(GTL) H

n Generating wind energy I

n Refning oil into uels and lubricants J

n Producing petrochemicals K

n Developing biouels L

n Trading M

n Retail sales N

n Managing CO2 emissions

n Supply and distribution

n Business-to-business sales

UPSTREA DOWNSTREA


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ROAL DUTC SELL PLC 3

STRATEgY

Our strategy seeks to reinorce our position as a leader inthe oil and gas industry in order to generate competitiveshareholder returns while helping to meet global energydemand in a responsible way. Intense competition willremain or access to resources by our Upstream businessesand new markets by our Downstream businesses.We believe our technology, project-delivery capability andoperational excellence will remain key dierentiators or ourbusinesses. In Upstream, we ocus on exploration or newoil and gas reserves and developing major projects whereour technology and know-how adds value to the resourceholders. In our Downstream businesses, our emphasisremains on sustained cash generation rom our existingassets and selective investments in growth markets. We willcontinue to ocus on capital and cost discipline. We expect

around 80% o our capital investment in 2010 to be in ourUpstream projects. In Downstream, we aim to maintainrelatively steady capital employed.

Meeting the growing demand or energy worldwide inways that minimise environmental and social impact is amajor challenge or the global energy industry. We arecommitted to improving energy efciency in our ownoperations, supporting customers in managing their energydemands and continuing to research and developtechnologies that increase efciency and reduce emissionsin oil and gas production.

Our commitment to technology and innovation continues tobe at the core o our strategy. As energy projects becomemore complex and more technically demanding, webelieve our technical expertise will be a deciding actor inthe growth o our businesses. Our key strengths include thedevelopment and application o technology, the fnancialand project-management skills that allow us to deliver largeoil and gas projects, and the management o integratedvalue chains. We leverage our diverse and global businessportolio and customer-ocused businesses built around thestrength o the Shell brand.

OUTLOOK

We have defned three distinct layers or Shells strategydevelopment: near-term perormance ocus, medium-term

growth delivery and maturing next generation projectoptions.

PERFORANCE FOCUS

We will work on continuous improvements in operationalexcellence, with an emphasis on saety, asset perormanceand operating costs. We have frm plans in place or $1billion o cost savings in 2010, and sta reduction o some2,000 positions by the end o 2011. We expect assetsales o up to $3 billion per year as Shell exits rom

non-core positions across the company.

2010 STRATEGY UPDATE

PEARL GAS TO LIID PLANT IN ATAR


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ROAL DTCH PETROLEM COMPAN, RDSAADR & DO JONES INDSTRIAL AERAGE

ROAL DTCH PETROLEM COMPAN, RDSA & AEX SHELL TRANSPORT & TRADING, RDSB & FTSE

INVESTMENT HIGHLIGHTS

CAPITAL EMPLOYED

CUMULATIVE BUYBACKS AND DIVIDENDS

EARNINGS (*)

PRODUCTION GROWTH

SHARE PERFORMANCE

UPSTREAM CORPORATE

DIVESTMENTS/OTHERSDOWNSTREAM

(*)CURRENT COST OF SUPPLY EARNINGS

$ Billion

2005

35

30

25

20

15

10

5

0

-5 2006 2007 2008 2009

ROAL DUTC SELL PLC 5

$ Billion

UPSTREAM

DOWNSTREAM

2005 2012

200

150

100

50

0

2005 2006 2007 2008 2009

BUYBACK

DIVIDENDS

0

20

40

60

80

$ Billion

OIL & GAS PRODUCTIONPRODUCTION FORECAST AT $70/b

2009 2010 2012 2014

4,000

Kboe/d

3,000

2,000

1,000

60

80

100

120

140

Index (End 2004 = 100)

AEX

2005 2006 2007 2008 2009

160

l lR oyal Du tc h P etr ol eum comp any and RDS A AMSTERDAM l l

l

Index (End 2004 = 100)

60

80

100

120

140

160

2005 2006 2007 2008 2009

l ll l Shell Trading & Transport and RDSB LONDON

FTSE 100 l

Index (End 2004 = 100)

60

80

100

120

140

160

2005 2006 2007 2008 2009

Royal Dutch Petroleum company and RDSA ADR NEW YORKl l ll

DJ Industrial average


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6 ROAL DUTC SELL PLC

DONSTREAM TRANSPORTATION - ASTRALIA

SHELL EMPLOEE AT RETAIL SITE ATARGAS-4 NDER CONSTRCTION

Courtesy o atargas


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2010 ir factsheet english

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