ROYAL DUTCH SHELL PLCBARCLAYS NEW YORKBARCLAYS NEW YORK
NEW YORKSEPTEMBER 5, 2012
Copyright of Royal Dutch Shell plc 5 September 2012 1
SEPTEMBER 5, 2012
ROYAL DUTCH SHELL PLCROYAL DUTCH SHELL PLCBARCLAYS NEW YORKSIMON HENRYCHIEF FINANCIAL OFFICER
Copyright of Royal Dutch Shell plc 5 September 2012 2
DEFINITIONS AND CAUTIONARY NOTE
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 or SEC provenmining reserves. Resources are consistent with the Society of Petroleum engineers 2P and 2C definitions.
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities In this presentation “Shell” “Shell group” and “RoyalThe companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation Shell , Shell group and RoyalDutch 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 byidentifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies in whichRoyal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companiesin which Shell has significant influence but not control are referred to as “associated companies” or “associates” and companies in which Shell has joint control areg p p jreferred to as “jointly controlled entities”. In this presentation, associates and jointly controlled entities are also referred to as “equity-accounted investments”. The term“Shell interest” is used for convenience to indicate the direct and/or indirect (for example, through our 23% shareholding in Woodside Petroleum Ltd.) ownershipinterest 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 otherthan statements of historical fact are or may be deemed to be forward-looking statements Forward-looking statements are statements of future expectations that arethan statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that arebased on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance orevents to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning thepotential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections andassumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’,‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. There
f f ff f f ff fare 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 theforward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand forShell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmentaland physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of suchtransactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developmentsincluding potential litigation and regulatory measures as a result of climate changes; (k) economic and financial market conditions in various countries and regions; (l)including potential litigation and regulatory measures as a result of climate changes; (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 ofprojects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this presentation areexpressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-lookingstatements. Additional factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended 31 December, 2011 (available atwww.shell.com/investor and www.sec.gov ). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this
S b 20 2 N h l h Sh ll f b d d k bl bl l d f d l kpresentation, 5 September 2012. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-lookingstatement 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 inferredfrom the forward-looking statements contained in this presentation. There can be no assurance that dividend payments will match or exceed those set out in thispresentation in the future, or that they will be made at all.
We use certain terms in this presentation, such as resources, that the United States Securities and Exchange Commission (SEC) guidelines strictly prohibit us from
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We use certain terms in this presentation, such as resources, that the United States Securities and Exchange Commission (SEC) guidelines strictly prohibit us fromincluding in 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 websitewww.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.
OVERVIEW
Performance focus H1 ‘12 earnings $13 bln; EPS unchangedg gH1 ’12 asset sales $4 bln
G th d li
CONTINUOUS IMPROVEMENT
Growth deliveryH1 ‘12 underlying production growth 4%>20 projects under construction
GROWTH DELIVERY
p j
New growth optionsE di i f l
MATURE NEW OPTIONS
PERFORMANCE FOCUS
Expanding our opportunity funnelFrontier exploration buildNew integrated gas optionsNew integrated gas options
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Earnings CCS basis, earnings and EPS excluding identified items
ENERGY INVESTMENT FUNDAMENTALS
ROBUST LONGER TERM FUNDAMENTALS
energy demand outlook in million boe/d
MANAGING SHORT-TERM VOLATILITY
$/bbl $ per unit of measurement
10
12
120
140
400
gy p
8100
300
6
60
80
200
2
4
20
40100
00
20
2008 2009 2010 2011 2012 0
1980 1990 2000 2010 2020 2030 2040 2050
Brent (LHS)Henry Hub $/mmbtu (RHS)Weighted average refining margin $/bbl (RHS)
OilGas
BiomassWind
CoalNuclearSolarOther RenewablesShell activities
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Source: Shell analysis
Other Renewables
CONTINUOUS IMPROVEMENT
DOWNSTREAM: MINIMIZING UNPLANNED DOWNTIME%
UPSTREAM: WELL AND RESERVOIR MANAGEMENTOil production in ‘000 boe per day
95
10
855
75
20,000 bpd
65
02006 2007 2008 2009 2010 2011 1H2012
Oil ProductsChemicals
Implementation of structured
WRM process
65Chemicals
552002 2004 2006 2008 2010 2012EXTRACTING MORE VALUE
FROM OUR ASSETS
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Example: Oman
RECYCLING CAPITAL INTO NEW GROWTH
ACQUISITIONS 2011-2012 YTDDIVESTMENTS 2011-2012 YTD
~$12 ~$6~$12 billion
~$6 billion
UpstreamDownstream
UpstreamDownstream
Exit non-core positionsStrategic partnering; Prelude, Groundbirch
Liquids-rich shalesFrontier exploration plays
Refinery-to-terminal conversions LNG optionality
RIGOROUS FOCUS ON CAPITAL EFFICIENCY
2012 DIVESTMENTS $4 BLN
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2012 DIVESTMENTS >$4 BLN
GROWTH DELIVERY RAMPING UP NEW PROJECTS
ATHABASCA OIL SANDS, QATARGAS 4, PEARL GTL
$ billion
PEARL GTL PRODUCT SLATE BUILD-UP
thousand boe/day
400 100%
GASOLINE
NAPHTHA
LPG
NAPHTHANAPHTHANAPHTHA
200
50%
NAPHTHA
GAS OILGAS OIL
GAS OIL
GAS OIL
00
GAS OIL
KEROSENEBASE OIL
KEROSENE
BASE OIL
GAS OIL
BASE OIL
-1
0%Typical complexrefinery
BASE OILPARAFFIN PARAFFIN
-22009 2010 2011 2012 FOCUS SHIFTS FROM
CapexProduction (RHS)
FOCUS SHIFTS FROM DEVELOPMENT TO COMMERCIAL PERFORMANCE
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Shell share
MAINTAINING GROWTH MOMENTUM
UPSTREAM KEY PROJECTS UNDER CONSTRUCTION UPSTREAM INVESTMENT 2012
%
h h
AOSP Debottlenecking Clair Ph2Schiehallion Redevelopment
CorribKashagan Ph1
Eagle FordMars B
Cardamom
North America tight gasas aga
Majnoon FCP
Harweel Amal SteamUAE
Gumusut-Kakap Sabah Gas K b b
Caesar Tonga
Southern SwampForcados Yokri
Tempa Rossa
Bonga NW
BC-10 Phase 2
Kebabangan
Pluto LNG T1 (Woodside)Gorgon LNG T1-3
North Rankin 2
Prelude FLNGWheatstone LNG
Greater Western Flank Ph 1
pEuropeAmericas
Asia PacificOther
On stream H1 2012Under construction2012 H1 FID
ROBUST PROJECT FLOW + GROWTH OUTLOOKROBUST PROJECT FLOW + GROWTH OUTLOOK8 BILLION BOE UNDER CONSTRUCTION ~4 MILLION BOED 2017-18
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GROWTH DELIVERY 2012+ MAINTAINING LNG LEADERSHIP
SHELL GLOBAL LNG CAPACITY + GROWTH
million tonnes per annum
AUSTRALIA – INDONESIA
p
40Abadi FLNG
40Greater Sunrise
Prelude FLNGBrowse
l (W d d ) G T1 3
Wheatstone & Prelude
North West Shelf
20
Pluto (Woodside)
Gorgon
Gorgon T1-3North West Shelf
WheatstoneArrow
Under ConstructionProduction
Options0
2012 1H ~2020+
21 MTPA ON STREAM
p
OnstreamConstructionOptions
~21 MTPA ON-STREAM~7 MTPA UNDER CONSTRUCTION~15 MTPA FUTURE OPTIONS
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PRELUDE FLOATING LNG
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SHELL UPSTREAM AMERICAS GROWTH
TIGHT/SHALE DEEP-WATER
AOSP Debottlenecking
Eagle Ford M B
North America tight gas
North America Liquids rich shales
Carmon Creek
Lowest cost gas + integration plays
Growth focus
M B d l tUnder ConstructionOptions
Eagle Ford Mars BCardamom
VitoStonesAppomattox
integration plays
Eagleford development + new plays
Mars-B development + new options
HEAVY OIL2011 PRODUCTION HEAVY OIL2011 PRODUCTION
BC-10 Phase 2
BC-10 Massa Ph 3
Debottlenecking mining options
In-situ growth opportunities
Deep waterTight/shale
l
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opportunitiesHeavy oil
MARS-B DEVELOPMENT
Mars-B Construction, South Korea
First Oil Mars
Mars Disco-
First Oil King &
First OilDeimosS b
South Deimos
1989 1996 2000 2007 2009 2010
Mars-B FID
WestBoreas
~2015
Start-up
1989 discovery; ~900 meters water depth> 200,000 boe per day peak production Mars-B FID September 2010:
100 kb /d TLP very Europa Subsea Tie-Back
Disco-very
Disco-very
100 kboe/d TLPSouth Deimos and West Boreas tie-backs
Shell 71.5%, operator
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MATURING NEW OPTIONS:EXPLORATION & BUSINESS DEVELOPMENT
BUILDING NEW ACREAGE
‘000 km2 cumulative gross acreage cumulative spend $ billionS Eagle Ford
Miss. Lime Bakken
Fox CreekWolfcamp
15400
g g p
/ Sh
ale
LRS
Neuquen
UticaCanol
NiobraraColombia
Turkey
Exshaw
10
Tigh
t
Gas
Entry cost
FushunUkraine
Jin Qiu
Montney/Gundy
Queensland
5
200
r AcreageN S ti
Greenland AlbaniaI
Marcellus
Ab di
Fr GuianaTurkey
Yinggehai
ntio
nal
Fron
tie
g
TanzaniaNova Scotia
Brunei DW
Iraq
South Africa DWKalmykia New Zealand
Qatar (block D)Timan Pechora
Abadi
GOM
KEY WELLS IN H2 2012
002009 2010 2011 1H 2012
Conv
e
artla
nds
Brunei DW
Australia CanningGOM
Malaysia
UK
KEY WELLS IN H2 2012
Building new acreage
Hea
2010 2011 2012 1H
Nile DeltaPhilippines
ALASKAFRENCH GUIANA
GOMAUSTRALIA NWS
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Building new acreage
NEW EXPLORATION POSITIONSCONTINUED BUILD IN GULF OF MEXICO
R P llR P ll
GULF OF MEXICO: EAST GULF OF MEXICO: APPOMATTOX APPRAISAL
MC 393MC 347 MC 348
AppomattoxAppomattox
Ram-PowellRam-Powell
NE AppraisalNW AppraisalH2 ‘12
MC 348 & st
MarsMars
UrsaUrsa SW Appraisal AppomattoxDiscovery
VicksburgDiscovery
VicksburgAppraisal
VitoVito
2012 Appraisal S
Shell Leases2012 Shell access
Well PenetrationsOilWet
DC 353MC 391 MC 392 MC 393
y
H1 ‘13Appraisal
Success 2012 Shell access0 50
milesShell Production Hubs
C TFID START-UPDISCOVERY
0 1
MilesShell LeasesWet
Caesar Tonga
Mars B
Cardamom
Stones
Appomattox
Vi
LEADING DEEP WATER PLAYER
GROWTH POTENTIAL
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VitoGROWTH POTENTIAL
2005 2010 2015 2020
MATURING NEW OPTIONSNEW NORTH AMERICA INTEGRATED GAS POTENTIAL
Shell’s integrated gas capabilitiesLNG Canada
Studying 12 mtpa at Kitimat
Green corridor gas-to-transport0.3 mtpa at Jumping Pound
Equity + industry resources baseNatural hedge; oil/gas differential
Shell 40% + strategic partners
MOVABLE MODULAR LIQUEFACTION SYSTEM (MMLS)
Western Canada gas resourcesGroundbirch resource potential
Gas-to ChemicalsGas-to-transport
Groundbirch resource potential increased from 6 tcfe to >12 tcfe(Shell 80%)
GTL+ LNG Options
C t tiProjectConceptFeasibility
FID ExecuteDefineSelectAssess Start-up Operate
Ramp-up to
NORTH AMERICA GAS MONETIZATION OPTIONS
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ConstructionProject Specifications
Concept Selection
Feasibility Study
Ramp up to full capacity
FINANCIAL FRAMEWORK
30%
NET DEBT AND GEARING$ billion
CAPITAL INVESTMENT
$ billion
20
30
20%
30%
2010 2011 H1 2012
Organic Investment 24 26 14
0
10
0%
10%
2005 2006 2007 2008 2009 2010 2011 2012
Organic Investment 24 26 14
Acquisitions 7 5 1
Disposals (7) (7) (4)2005 2006 2007 2008 2009 2010 2011 2012
YTDGearing (LHS)Net Debt (RHS)
RDS VERSUS FTSE 100
Net Capital Investment 24 24 11
RDS VERSUS FTSE 100Total dividend growth rate versus 2006
30%~$32 BLN ORGANIC CAPEX 2012
0%
10%
20%
2006 2007 2008 2009 2010 2011 2012
MAINTAINING PRUDENT BALANCE SHEET
-20%
-10%2006 2007 2008 2009 2010 2011 2012
YTD
RDS dividend growth
FTSE100 dividend growth
SELECTIVE PORTFOLIO BUILD
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FTSE100 dividend growth
SUMMARY
Performance focus H1 ‘12 earnings $13 bln; EPS unchanged
CONTINUOUS IMPROVEMENT
g gH1 ’12 asset sales $4 bln
G th d liGROWTH DELIVERY
Growth deliveryUnderlying production growth 4%>20 projects under construction
MATURE NEW OPTIONS
PERFORMANCE FOCUS
p j
New growth optionsE di i f lExpanding our opportunity funnelFrontier exploration buildNew integrated gas optionsNew integrated gas options
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Earnings CCS basis, earnings and EPS excluding identified items
ROYAL DUTCH SHELL PLCBARCLAYS NEW YORK
QUESTIONS & ANSWERS
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ROYAL DUTCH SHELL PLCBARCLAYS NEW YORKBARCLAYS NEW YORK
NEW YORKSEPTEMBER 5, 2012
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SEPTEMBER 5, 2012