annual roundtable - shell global | shell global · 4/24/2017 · annual roundtable socially...

Royal Dutch Shell April 24, 2017

Royal Dutch Shell plcApril 24, 2017

Annual roundtableSocially Responsible Investors

#makethefuture


Ben van BeurdenChief Executive OfficerRoyal Dutch Shell

Royal Dutch Shell April 24, 2017 3

Cautionary note This presentation contains data from Shell’s New Lens Scenarios. The New Lens Scenarios are a part of an ongoing process used in Shell for 40 years to challenge executives’ perspectives on the future business environment. We base them on plausible assumptions and quantifications, and they are designed to stretch management to consider even events that may only be remotely possible. Scenarios, therefore, are not intended to be predictions of likely future events or outcomes and investors should not rely on them when making an investment decision with regard to Royal Dutch Shell plc securities.

It is important to note that Shell’s existing portfolio has been decades in development. While we believe our portfolio is resilient under a wide range of outlooks, including the IEA’s 450 scenario, it includes assets across a spectrum of energy intensities including some with above-average intensity. While we seek to enhance our operations’ average energy intensity through both the development of new projects and divestments, we have no immediate plans to move to a net-zero emissions portfolio over our investment horizon of 10-20 years.

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to “joint ventures” and “joint operations” respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2016 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this presentation and should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, April 24, 2017. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. This presentation may contain references to Shell’s website. These references are for the readers’ convenience only. Shell is not incorporating by reference any information posted on www.shell.com. We may have used certain terms, such as resources, in this presentation that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.


Agenda 09:30 – 10:45 Presentation

Ben van Beurden

Donny Ching

Hans Wijers

Guy Outen

10:45 – 11:30 Q&A

11:30 – 12:00 Coffee break

12:00 – 14:00 Panel sessions Q&A (35 minutes each, 5 minutes to rotate)

14:00 – 14:45 Lunch

4


Panels

Projects and Technology, Joint Ventures

Upstream Safety and Environment

Strategy including New Energies, climate change and CO2 management

Harry Brekelmans Director Projects and Technology

Sami Iskander EVP Joint Ventures

Babs Omotowa VP Safety & Environment Upstream

Osagie Okunbor Managing Director SPDC

Rupert Thomas VP Environment

Guy Outen EVP Strategy & Portfolio

Angus Gillespie VP CO2

David Hone Chief Climate Change Advisor

5

PANEL A PANEL B PANEL C


Donny ChingLegal DirectorRoyal Dutch Shell


OPL 245Chronology of Events (1)

Phase 1

1998 - Malabu awarded licence for OPL 245

March 2001 - Shell Nigeria Ultra Deep (“SNUD”) farms in

Representations and warranties were provided on ownership of Malabu

Federal Government Nigeria (“FGN”) consented

Phase 2

July 2001 - FGN revokes the Malabu Licence

May 2002:

SNUD bids for and is awarded OPL 245 by FGN and later signs a PSC with Nigerian National Petroleum

Corporation (“NNPC”)

Signature bonus ($209 million) is placed in escrow pending outstanding disputes with Malabu

SNUD conducts exploration and appraisal work programme



Phase 2 (continued)

Various litigations follow:

May 2002 - SNUD commenced International Chamber of Commerce arbitration proceedings against

Malabu.

August 2002 - Malabu commenced proceedings against FGN, Shell Nigeria Exploration and Production

Company (“SNEPCO”), SNUD and other Shell parties in New York federal court

May 2003 - (following a petition by Malabu), the Nigerian House of Representatives issued a report

concluding: (i) OPL 245 was legally awarded to Malabu, (ii) the revocation of Malabu’s licence should be

set aside, (iii) SNUD should pay $550 million compensation to Malabu. SNUD appeals

September 2003 - Malabu commenced proceedings in Nigeria against FGN, NNPC and SNUD for a

declaration that the award of OPL 245 to Malabu was valid, a declaration that the award to SNUD was

invalid, and damages of $100 million


OPL 245

Chronology of Events (3)

Phase 3

December 2006 - FGN settles litigation with Malabu and reallocates the licence to Malabu

Malabu and SNUD now have competing legal rights to the Block

April 2007 - SNUD commences Bilateral Investment Treaty arbitration against the FGN for wrongful

expropriation

2008 - FGN seeks resolution, negotiations commence



Phase 4

2010 - negotiations now include ENI

Settlement with FGN - negotiations are conducted with Attorney General of FGN, the Minister of Petroleum

Resources, the Minister of Finance and senior NNPC officials

April 2011 - settlement is achieved. FGN receives $1.3bln:

Signature bonus ($207.96 million) is released by SNUD to FGN from 2003 escrow funds in return for the

licence

SNEPCO pays $110.40 million to ENI (Nigerian Agip Exploration (“NAE”) ) ($25.40 million interest on

the escrow, plus $85 million)

NAE pays $1,092.04 million to FGN for settling all outstanding claims on the Block

FGN agrees to indemnify SNEPCO and NAE from any other claims on the Block

SNEPCO and NAE hold the licence 50/50. NAE is operator


OPL 245Agreements of April 2011

Heads of Agreement between NAE and SNUD and SNEPCO: allocation of the payments due to FGN

Block 245 Resolution Agreement: FGN, NNPC, SNUD, SNEPCO and NAE

Payments to FGN and award of the licence

FGN indemnifies SNEPCO and NAE against competing claims

Key fiscal terms of future PSC

Block 245 Resolution Agreement: FGN and Malabu. Payment to Malabu; settlement of claims

Block 245 Resolution Agreement: FGN and SNUD. Settlement of claims

Settlement submission to Court of Appeal, Abuja: SNUD, SNEPCO, Malabu and Nigerian House of

Representatives (“NHR”). Withdrawing SNUD and SNEPCO appeals against a 2003 NHR report in favour of

Malabu


OPL 245Shell Review

Debevoise & Plimpton LLP, an international law firm, was retained by the Shell Group

Debevoise conducted and led an investigation which included staff from the law firm and Shell’s Business

Integrity Department

Periodic updates to senior management, Audit Committee and RDS Board

Final report to RDS Board in July 2016

Findings shared with authorities during 2016


OPL 245Shell response

“Given this matter is currently under investigation, it would be inappropriate to comment on specifics. However,

based on our review of the Prosecutor of Milan's file and all of the information and facts available to Shell, we

do not believe that there is a basis to prosecute Shell. Furthermore, we are not aware of any evidence to support

a case against any former or current Shell employee. If the evidence ultimately proves that improper payments

were made by Malabu or others to then current government officials in exchange for improper conduct relating

to the 2011 settlement of the long standing legal disputes, it is Shell’s position that none of those payments were

made with its knowledge, authorization or on its behalf.

We are taking this matter seriously and are fully co-operating with the relevant authorities. This includes when

appropriate having shared the key findings of an investigation led by Debevoise & Plimpton LLP, an independent

international law firm. We have also accurately reported on OPL 245 in our annual reports.

Shell attaches the greatest importance to business integrity. It’s one of our core values and is a central tenet of

the Business Principles that govern the way we do business.”


ESG Programme SRI programme

SRI annual roundtable

Ongoing engagement + roadshows

SRI themed site visits

Governance programme

Remuneration committee roadshows

Chairman roadshows

AGM

2016: ESG Board engagement day

www.shell.com/esg


Transition 2016 + delivery 2017+

Continued drive to re-shape Shell

Consolidated BG into Shell

Progressing 4 levers: cost reductions, capital

spend, divestments and project start-ups

From 8 towards 7 strategic themesLeader: value +

influence

Reducing our carbon

intensity

Shared value with society

World-class investment case

FCF + ROCE growth

Conservative financial

management


Leading in transparencyRDS Reporting

2017 update

A- in 2016 CDP

Inclusion in the Dow Jones Sustainability Index

Increased disclosure on Human Rights

Revenue transparency reporting (June 2017)

Engagement with Taskforce on Climate-related Financial Disclosures (TCFD)


Health, Safety, Security & Environment

Process safety is central in achieving Shell’s goal of zero harm to

people and the environment

Managed by combining asset integrity principles with a risk

management approach, supported by visible safety leadership

Asset Integrity Principles Risk Management Approach Process Safety Performance


Goal Zero on safety

Energy intensity - refineries

Spills - operational

Process safety

19

HSSE Performance Injuries – TRCF/million working hours

Energy Intensity Index (EEITM)

Volume in thousand tonnes

Number of incidents

HSSE Priority Performance +

transparency BG included from February

1, 2016

million working hours Number of spills

Working hours (RHS)TRCF

Tier 1 incidents Tier 2 incidents

NumberVolume


Embedding a safety cultureSafety Leadership

Our Commitment

Visible leadership commitment at all levels

Collaboration with peers, partners,

contractors, communities, and regulators

Emphasis on care

Responsible Partner

Brazil: Shell + Petrobras

Pro-active sharing of learnings

Joint support to implement well control assurance

tool and integrity management system


Permian

Infrastructure investment reduces

truck hauling

Formation of Permian road

safety coalition

21

Committed to reducing exposureRoad Transport

Petroleum Development Oman

Introduced centralized journey

control room

Better able to monitor

performance and adherence

Ensuring employees and drivers have the best safety skills possible

Investment in community road safety programmes

Our Approach

Reduce number of journeys

Road safety requirements

Learn and share from incidents

PDO, OmanDrones in Australia Permian Central Processing Facility


Contractor Safety Management

Number of fatalities

Injuries per million working hours

Total recordable case frequency (TRCF)

Contractors are critical to achieve Goal Zero

> 190,000 contractors

Represent 65% of total exposure hours

Perform most high risk activities

Evolving contractor management strategy

EmployeesContractors Contractors Employees

#


Ongoing emissions management

Data on a 100% operated basis unless otherwise specified1 Energy required to produce a tonne of oil equivalent. 2 Indirect emissions were not recorded before 2009

GJ/tonne1

Energy intensity

Million tonnes hydrocarbon flared

Million tonnes CO2 equivalent

Emissions

"Zero Routine Flaring by 2030“ initiative

Start-up gas capturing at Majnoon, Iraq and

gas reinjection in Malaysia in 2016

2016 numbers include BG from February 1, 2016

www.shell.com/ghg

Upstream excl. oil sands, LNG, GTL Refining Chemicals

Index

-34%

Flaring performance

Rest of WorldNigeria

Indirect (scope 2)2Direct (scope 1)


NigeriaHSSE performance

Improved operational oil spill numbers and safety

performance over 2016

Lower oil theft volumes and sabotage related spills

despite resurgence in militant activity

Progress on Nigerian government-led multi-

stakeholder UNEP clean-up efforts

Reduced onshore footprint

Targeted investments: domestic gas

Widespread oil theft + sabotage remains a challenge

2016 beneficiaries ‘Cradle to Career’ Scholarship

Workers inspecting Koroama Non Associated Gas Facility


Hans WijersChairman of the Corporate Social Responsibility CommitteeRoyal Dutch Shell


CSRC topics

Nigeria

Greenhouse gas metrics in remuneration

Asset integrity and process safety

Induced seismicity

Kazakhstan

2016 areas of focus

Nigeria

Process safety (including BG assets)

CO2-related trends and developments

Post-COP21 landscape

Shared value

Security

2017 areas of focus

Lula FPSO Cidade de Saquarema, Brazil (NOV)A Shell technician conducting integrity checks on Shearwater, Aberdeen, Scotland


Strategy drives change

Remuneration follows and supports strategy

27

Rewarding performance in line with delivery of strategy GHG metrics in Remuneration

* Solomon’s utilised equivalent distillation capacity

CSRC input into updated Remuneration policy

Bonus reflects progress in reducing GHG in 3 key businesses

CEO personal performance agreement includes progress in New Energies

Scorecard aligned for staff and Directors

Annual bonus scorecard design

Cash flow from operating activities Operational excellence Sustainable development

2016 2017

2% Water use

4% Oil spill volumes

4% Energy intensity

5% Process safety

5% Process safety

5% Personal safety

5% Personal safety

10% GHG management

10% Environment

10% Safety

Upstream flaring in million tonnes CO2e

Refining GHG intensity measured in tonne CO2e per UEDC *

Chemicals GHG Intensity measured in tonne CO2e per tonne of chemicals production


Ener

gy T

rans

ition

Board and future business environment

Diverse input in Board meetings to stretch thinking and inform decision making

Beliefs Uncertainties

Mega Trends Macroeconomics

Market

Dig

italis

atio

nIndustry

28

Example:

Sustained era of transition & volatility

Emerging markets drive Global GDP increases

Example:

Political tensions & regional instability

Impact of digital technology

Example:

Hydrocarbon demand growth + supply required

Renewables contribution increases significantly

Example:

Key pricing mechanisms

Energy transitions impact

Example:

Technology & scale alone insufficient

Example:

Winning business models & capabilities


Shell sustainability in action

Safety and environmental performance in

Karachaganak, Kazakhstan

Shell Biofuels business and 2G biofuels

technologies

Shell Hydrogen projects in core markets in North

West Europe and North America

Karachaganak Processing Complex, KPO, Kazakhstan Retail station offering hydrogen, Germany

IH2 advanced biofuels demonstration facility, India


Energy challenge

Source: UN Population Fund; UN World population Prospects (2015 revision); World Urbanisation Prospects (2014 revision); IEA, Energy Technology Perspectives 2015; Shell New Lens Scenarios

Growing populationGlobal population will increase from around 7.4 billion today to nearly 10 billion by 2050, with 67% living in cities

Rising demandGlobal energy demand will likely be almost 60% higher in 2060than today, with 2 billion vehicles on the road (800 million today)

Ongoing supplyRenewable energy could triple by 2050, but we will still need large amounts of oil and gas to provide the full range of energy products we need

Mitigating climate changeNet-zero emissions is a potentially achievable societal ambition

Growing global demand for energy as population and living standards increase


Shell’s activities in the energy transitionWorld-class investment case Developing our gas business Biofuels business

Advocate CO2 pricing Scenarios thought leadership Coalitions & government advisory

New Energies business

Developing CCS R&D in low carbon technologies Shell Technology Ventures


Not considered in best interests

of Company

Engaged with Follow This on

timeline for energy transition

ahead of resolution filing

Majority of shareholders voting

voted against

Resolution ignored timescale

and impact for profitability

Unwise to tie Shell to any single

mandate

Shareholder resolutions

* Notice of Meeting for the 2017 AGM with full response to the Shareholder Resolution published on www.shell.com/agm on April 20, 2017

“Strategic resilience for

2035 and beyond”

2015 “Aiming For A”

“Shell will become a renewable

energy company”

2016 “Follow-this.org”

“Shell will set targets to reduce

scope 1, 2 + 3 GHG emissions”

2017 “Follow-this.org”

Supported by Board +

shareholders

Builds on previous Shell

disclosures

Report-out in full in 2016

Ongoing engagement with

IIGCC resolution sub-group

Not considered in best interests

of Company *

Shell supports the aspiration of

transitioning towards a net-

zero emissions world by 2050

Shell’s strategy is resilient to the

envisaged implementation of

the Paris agreement

Participating in the energy

transition e.g. through gas

Targeting a single supplier will

not accelerate transition

33

http://www.shell.com/agm


Supporting the Paris agreement

Supplying LNG to Pakistan, displacing liquid fuels used for power generation increases

Shell’s Scope 3 emissions, but reduces the emissions from power generation with a net

saving of an estimated 2 mt CO2 equivalents per annum per 1mt of LNG sold

Supplying 60 kt LNG per annum as a power source for two cruise ships, replacing

liquid fuels, increases Shell’s Scope 3 emissions, but saves emissions of an estimated

48 kt CO2 equivalents per annum

Basrah Gas Company, by gathering and processing gas otherwise flared by other

producers, increases Shell’s Scope 1 and Scope 3 emissions, but reduces Scope 1

emissions from gas flaring by other producers by up to an estimated 10 mt CO2

equivalents per annum

Examples how Shell’s activities can help work with others towards meeting the aspiration of the Paris agreement

We will work together with governments and stakeholders towards meeting this aspiration

We commit to report on steps taken


Portfolio resilience to energy transition

Global energy demand, million boe per day

IEA ‘450’ scenario

GHG and energy management plans at asset level

Oil products:By 2025, significantly increase low-emission fuels Shell offers to customers

Conventional oil and gas:Drive for top quartile CO2 efficiency and lowest cost per barrel

Integrated gas:Working across the value chain to unlock demand for cleaner and cost-competitive fuel

Deep water:Target lowest break-even price projects for resilient production

Chemicals:Shell's output could be used in products that enable CO2 savings

Shales:An advantaged asset base with short cycle investment

New energies:Exploring, de-risking and establishing portfolio positions with a clear path to profitability

Gas

Oil

Coal

Bio-energy

Hydro

Other renewables

Nuclear

35

Examples of resilience in strategic themes

Source: World Energy Outlook 2016

After the Oil Sands divestment the number of strategic themes will be reduced from 8 to 7IEA 450


Supporting energy transitionIntegrated Gas

http://www.shell.com/energy-and-innovation/natural-gas/liquefied-natural-gas-lng/lng-outlook.html

OCGT: Open cycle gas turbine. CCGT: Closed cycle gas turbine.

Average time required to come online, minutes

Gas emits around 50% less CO2 than coal

LNG emits around 40% less CO2 than coal

Air pollution benefits by using gas over coal

Supporting renewable generation growth

lb/MWh gross

Addressing local air quality concerns

Shell published LNG outlook February 2017

Negligible emissions from gas

Coal Emissions, Supercritical Pulverized Coal Boiler

Natural Gas CCGT

Negligible emissions from gas


Retail’s 5 ambitions for 2025Oil Products

37

50%

Increase margin share from

convenience retail to 50%

20%

Fuels margin from low-emission

energy solutions

LOWER CARBON

Reduce carbon intensity of our

retail outlets by at least 50%

EVERY CUSTOMER

Treated like a guest on site & in the digital world

100%

Sites committed to local communities

unified by a global social

cause

1 2 3 4 5


Chemicals

Petrochemicals are the key ingredients for thousands of essential products

Faster growth than GDP

Shell produces important petrochemical building blocks

Some products made from petrochemicals can enable CO2 savings over their lifetime

Increasing standards of living driving growth Innovative solutions that support a lower carbon future

Petrochemicals play a vital role in meeting the growing population’s demands

Cold wash laundry detergents

Modern home insulation

Lightweight plastics in cars

38


Delivering resilient production Upstream

CO2 efficient production with the lowest unit cost, from an advantaged asset base

Drive top quartile operational performance

“Fit for the Future” drive for top quartile CO2 intensity and cost

competitiveness

Target low break-even price projects for future development

New projects to deliver top quartile CO2 intensity and zero

flared/vented associated gas

De-prioritise developments with high CO2 intensity

GHG energy management plans to be in place for all assets

Deliver energy optimisation

Reduce methane contribution and fugitive emissions

Examples

Flaring reduction projects in Nigeria, Malaysia and Iraq

Investments in venting reduction for EOR in Bokor Malaysia

Gumusut-Kakap, Malaysia

39


Methane emissions

Advocate for policies to support economy-wide methane reduction

Staff using Infrared camera to check for methane leaks

Shell methane management:

Working to better detect methane emissions

Range of initiatives to reduce methane emissions

Detect and repair programmes

Flaring and venting reduction

Methane <5% of Shell’s emissions

Collaborating on methane:

Climate and Clean Air Coalition (CCAC)

EPA Natural Gas STAR programme

Eurogas

Natural and bio Gas Vehicle Association

Oil and Gas Climate Initiative (OGCI)


Guy OutenEVP Strategy & Portfolio Royal Dutch Shell


Shell scenariosIdentifying emerging challenges to guide us through change

Scenarios stretch our perspectives and help us to make crucial choices in uncertain times

‘13: New Lens

Scenarios ‘13 New Lenses on Future

Cities ‘14

A Better Life with a

Healthy Planet:

Pathways to Net-Zero

Emissions ‘16

Changing sources of

influence & decision

making power

Era of volatile

energy

transitions

Social fragmentation &

cohesion dilemmas; re-

emergence of State impact

‘01: Energy Needs,

Choices and Possibilities:

Scenarios to 2050

‘08: Shell energy

scenarios to 2050

‘92: Global Scenarios ‘92-’20


‘95: Long Term Energy Scenarios


‘02: People and

Connections Scenarios

‘05: Global

Scenarios to 2025

1965-1980

First scenarios

Trends

‘07: Signals &

Signposts

Globalisation, liberalisation,

technology diffusion; environmental

pressures; Asian growth

‘11: Signals &

Signposts

Publications

Internal unpublished scenarios focused on specific developments and challenges

42


Beliefs and uncertainties

43

Ener

gy T

rans

ition

Beliefs Uncertainties

Mega Trends Macroeconomics

Market

Dig

italis

atio

n Industry

Example:

Sustained era of transition & volatility

Emerging markets drive Global GDP increases

Example:

Political tensions & regional instability

Impact of digital technology

Example:

Hydrocarbon demand growth + supply required

Renewables contribution increases significantly

Example:

Key pricing mechanisms

Energy transitions impact

Example:

Technology & scale alone insufficient

Example:

Winning business models & capabilities

Scenarios influence beliefs that inform strategy and business decisions


Leverage brand, reach and core competencesShell strongly positioned

Changing landscape

Energy Transition & Mobility Shifts

Digitalization & other disruptors

Shifts in Demographics & Consumer behaviours

Global Retail

Global #1 Retailer

One of the largest B2B payment player

Global Commercial

Global #1 Lubricants marketer

Strong OEM relationships

Trading and New Energies

Leading, global energy & carbon trader

Biofuels and Hydrogen mobility

Brand, capability and scale

#1 energy brand

Financial capability

Innovation and partnering

Global footprint and local experience

Key trends potentially re-shape several industries

44


Leader: value +

influence

Reducing our carbon intensity

Shared value with

society

World-class investment case

Shell’s strategy#makethefuture

45

People and safety

Winning Capabilities

AspiredFuture

AspiredPortfolio

World-class investment case Leader: value + influence Reducing our carbon intensity Shared value with society

Customer Centricity Commercial Value Delivery Technology Commercialisation Project Delivery Operational Excellence

CashEngines

FutureOpportunities

GrowthPriorities


New energies strategyEmerging strategy

Advanced Biofuels

Renewable Power

Hydrogen

Customer Solutions

Opportunity dependent Aim to grow investment to

up to $1 bln by 2020


Questions & Answers

Ben van BeurdenChief Executive Officer

Hans WijersChair of the CSRC



Additional information


Low carbon opportunities


Nigeria environmental performance

*SPDC JV = 30% Shell, 55% NNPC, 10% Total, 5% Agip; all data on 100% basis unless stated

Thousand tonnes

Clean-up + UNEP progress:

Niger-delta kick-off event

Governance structure progress and initial SPDC JV

payment for restoration fund done

Cooperation with ICUN on remediation

Oil spill prevention + remediation:

Theft protection mechanisms improved

Daily overflights + surveillance via GMoUs

Remediation and certification efforts ongoing (92

sites remediated in 2016)

Social performance initiatives to address

underlying cause (Livewire training programmes,

alternative livelihood initiatives)

SPDC JV* spills

k boe/day

Shell share of SPDC production

2016 vs 2015

52% decline in number sabotage-related spills

56% reduction in number operational spills

volume of operational spills number of operational spills >100kg (RHS)

volume of sabotage spills number of sabotage spills >100kg (RHS)

#


NAMA 50:50 JV with Shell & ExxonMobil

2017 progress:

Damage claims handling now managed by the

“Nationaal Coordinator Groningen”. NAM at arm’s

length and focusing on its core activities

NAM is working hard to ensure safe gas production,

mitigate the impacts of gas production and offering

new perspective to the residents of the region

www.nam.nl

Government decisions

Current cap: 24 bcm per year. The government

will review production on an annual basis

The Minister of Economic Affairs announced on

April 19, 2017 that he will prepare measures to

reduce gas production by a further 10% for the

gas-year 2017/2018

NAM must submit a new production plan before

1 Oct 2020

Opening of earthquake proof school in Loppersum

Damage repair in Westeremden

52


Brent decommissioning

* In today’s money

10 year stakeholder engagement, plans shared

with 180 organisations, including environmental

groups and NGOs

Brent Delta Topside plan approved:

Target date single lift: May 2017

Over 97% planned to be recycled

Full Brent Field Decommissioning Programme:

60 day public consultation closed April 10,

2017

Next steps: review and respond to the

comments received

The science that underpins Shell’s conclusions

has been validated by an Independent Review

Group

Brent has created and sustained thousands of jobs, contributed more than £20bn in tax revenue* and provided the UK with a substantial amount of its oil and gas.


Water management

Water management plans in water scarce areas

Describing the long-term risks to water

availability

Describe and define measures to minimise use of

fresh water or recommend alternatives

Involved in working groups with organisations such

as the World Business Council for Sustainable

Development and IPIECA

Million cubic metres

Fresh water withdrawn by Shell

Agriculture remains the primary source of global

water demand

In 2014, primary energy production and power

generation were responsible for:

Around 10% of total water withdrawal

Less than 4% of total water consumption

Source: IEA World Energy Outlook 2016 figure 9.1 and table 9.1.

Global water use

Nimr Reed waterplant, Oman


Connected carExample

Pay for fuel from your Jaguar or Land Rover

dashboard

True world first (scale) amongst super majors.

OEMs are reaching out to Shell as a preferred

partner due to our digital capability and 43,000

retail outlets globally

Launched February 2017 at 600 stations in UK

annual roundtable - shell global | shell global · 4/24/2017 · annual roundtable socially...

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