marvin odum - credit suisse 20th annual energy summit in vail, colorado, february 24, 2015

1 Copyright of Royal Dutch Shell plc 24 February, 2015

CS VAIL ENERGY CONFERENCE BALANCING GROWTH & RETURNS

24 FEBRUARY 2015 ROYAL DUTCH SHELL PLC


MARVIN ODUM UPSTREAM AMERICAS DIRECTOR

ROYAL DUTCH SHELL PLC


DEFINITIONS & CAUTIONARY NOTE

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 the Society of Petroleum Engineers 2P and 2C definitions.

Organic: Our use of the term Organic includes SEC proved oil and gas reserves excluding changes resulting from acquisitions, divestments and year-average pricing impact.

Resources plays: our use of the term ‘resources plays’ refers to tight, shale and coal bed methane oil and gas acreage.

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate 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 in which Royal 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 companies in which Shell has significant influence but not control are referred to as “associated companies” or “associates” and companies in which Shell has joint control are referred 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 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’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ 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 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 of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. 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 factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended 31 December, 2013 (available at www.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 presentation, 24 February, 2015. Neither Royal Dutch Shell 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. There can be no assurance that dividend payments will match or exceed those set out in this presentation in the future, or that they will be made at all.

We use certain terms in this presentation, such as discovery potential, that the United States Securities and Exchange Commission (SEC) guidelines strictly prohibit us from including 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 website www.sec.gov. You can also obtain this form from the SEC by calling 1-800-SEC-0330.


400

600

800

0

2

4

'04 '06 '08 '10 '12 '140

5

10

'04 '06 '08 '10 '12 '14E

92

96

100

104

'04 '06 '08 '10 '12 '140

200

400

2012 2013 2014

FOCUS ON HSSE 2014 UPDATE

Injuries – TRCF/million working hours

Goal Zero on safety Injuries – TRCF/million working hours

Spills - operational Volume in thousand tonnes

Energy intensity – refineries Energy Intensity Index (EEITM)

Process safety Number of incidents

million working hours

Working hours (RHS) TRCF

HSSE priority

Performance + transparency Tier 1 incidents Tier 2 incidents


50

100

150

200

1/1/05 2006 2008 2010 2012 2014

EXECUTING A CONSISTENT, LONG-TERM STRATEGY

Unrelenting focus on HSSE

Technology, integration and scale

Disciplined capital investment by strategic theme

Growth in cash flow through cycle

Competitive shareholder returns

Total shareholder returns growth – 10 years Index 1/1/2005 =100

2014+ drive to rebalance growth and returns

Shell S&P500 FTSE100


0

100

200

300

400

1990 2010 2030 2050

2050 outlook

Population increases from 7 to 9 billion

Enabled by cheap and reliable energy

Realities

Requirement to mitigate climate change

Oil supply -70% by 2030 without new investment

Key role of gas & CCS

ENERGY TRANSITIONS

Long-term energy supply mix Million boe per day

Gas

Biomass Wind

Coal Nuclear Other renewables Solar

Shell activities Oil

Energy transitions underway

+50%

+50%


Oil market downturn

Entering 2015 with low oil prices

Requirement for $500 billion industry investment in upstream oil during 2014-20

Under-spending amplifies price spike risks

Shell response

Long-term $70 - $90 - $110 Brent oil price screens unchanged

Planning for low prices 2015+; uncertain recovery timing

Hard choices on our growth pipeline + options

Opportunity to reduce costs

0

20

40

60

80

100

2014 decline growth 2020

OIL MARKET + SHELL RESPONSE

Source: IEA estimates

Oil supply Million barrels of oil per day


-5

0

5

10

15

-10

0

10

20

30

2010 2011 2012 2013 20140

5

10

15

20

25

0

10

20

30

40

50

2010 2011 2012 2013 2014

0

10

20

30

0

10

20

2010 2011 2012 2013 2014

FINANCIAL PERFORMANCE 2014 DELIVERY

CCS earnings + ROACE excluding identified items

Earnings + ROACE $ billion

Cash flow $ billion

Dividend, buyback + gearing $ billion

%

%

Upstream Downstream

Corporate/Other

Dividend announced Buyback

CFFO CFFI ROACE (RHS)

Free cash flow (RHS)

Gearing (RHS)

$ billion

Gearing range

Well-positioned into oil market downturn

Asset sales delivered ahead of oil price decline

Enhanced free cash flow + lower gearing


2014 DELIVERY BALANCING GROWTH AND RETURNS

CCS earnings excluding identified items

CCS earnings $22.6 billion; CFFO $45.0 billion Dividend growth + buyback Restructuring in Oil Products + North America

resources plays

Moderated spending + growth Improved free cash flow; reduced gearing Early completion of 14-15 divestment plan

4 operated deep-water start-ups Repsol LNG integration: >$1 billion CFFO impact New options in FEED; improved exploration

Improve our financial performance

Enhance our capital efficiency

Deliver new projects


PRIORITIES 2015+

Choices on new options

Supply chain management

Managing affordability + financial flexibility

Preserving our competitive growth pipeline in downturn

Continued ramp-up of 2014 start-ups

2015 transition year into 2016/17+ growth

Returns and cash flow

Competitive returns for shareholders

Restructuring underperforming businesses

Cost reduction programmes

Competitive financial performance

Capital efficiency Project delivery


INVESTMENT PRIORITIES + PERFORMANCE

1 Iraq, Nigeria onshore (SPDC), Kazakhstan, Arctic, heavy oil

Engines (Downstream, Upstream engine)

Free cash flow businesses

Maintain competitiveness

Asset integrity + selective growth

Growth priority (Integrated Gas, deep water)

Global leadership established

High-grading our rich opportunity set

Longer term (resources plays, future opportunities1)

Major potential; managing non-technical risks

Slower pace + capital allocation

Investment choices driven on a global thematic basis Assets tested for attractiveness + resilience

-5

0

5

10

15

-20% 0% 20% 40%ROACE (%)

CFFO in billion $

Downstream engine

Upstream engine

Integrated gas

Deep water

Resources plays Future opportunities

2014 (Brent $99/bbl)

2013 (Brent $109/bbl)

Bubble size represents year-end capital employed


-5

0

5

10

15

2011 2012 2013 20140.0

0.2

0.4

0.6

0.8

2011 2012 2013 2014

UPSTREAM AMERICAS PORTFOLIO

Production million boe per day

Deep-water Resources plays Heavy oil

Capital investment $ billion

Deep-water Resources plays Heavy oil Pre-FID/other

+30% -20%

Resources plays Deep-water

Gas monetization options Heavy oil

Western Canada dry gas + LRS

Appalachia dry gas

AOSP + in-situ

Gulf of Mexico

Brazil

LNG Canada

Gas-to-chemicals

Elba LNG

Integration potential

Completed divestments

AERA heavy oil

Permian LRS Argentina

Eastern Canada

Colombia

Resources

Deep-water Resources plays

Heavy oil

8.8 billion boe

Major undeveloped resources

Completed divestments


COMPETITIVE FINANCIAL PERFORMANCE RESTRUCTURING RESOURCES PLAYS PORTFOLIO

Production excludes volumes from divestments

Production kboe per day

Capital investment $ billion

E&A On-stream

Gas Liquids Rich

Colombia

Argentina Neuquen

Ukraine

Oman Sichuan

Changbei

Arrow CBM

Changbei 2

Russia

Americas International

0

50

100

150

200

2011 2012 2013 20140

2

4

6

2013 2014 2015E

Liquids Gas

Permian

Appalachia

W. Canada LRS

W. Canada gas

2014: North America portfolio restructured ($3.3 billion asset sales / 110 kboe/d)

2015+: International portfolio reduction

+ possible write-downs Potential to further reduce

spending

Tunisia

-30%

` Germany

Algeria Turkey


DEEP-WATER GULF OF MEXICO PROJECT FLOW

Execute (under construction) On stream

Select/Define

Auger

Mars

Ursa

Nakika

Brutus

Vito ~100 kboe/d potential >300 million boe resources Shell 51.33% (operator)

Appomattox >150 kboe/d potential >700 million boe resources Shell ~80% (operator)

Caesar Tonga

Cardamom

Mars B

100 km

Growth outlook1:

228 kboe/d on stream in 2014

50 kboe/d under construction

>170 kboe/d new options 1 Shell share

Rydberg ~100mmboe

discovery Shell ~57%

(operator)

2014/15 exploration success

Ram Powell

Stones FPSO

Kaikias Oil discovery; appraisal

well spudded Shell 100% (operator)

Perdido Stones ~50 kboe/d FPSO >250 million boe resources Shell 100% (operator) FPSO under construction 2016 start-up

Gettysburg Oil discovery,

evaluating results Shell 80%

(operator)

Powernap Oil discovery plus

down-dip sidetrack oil discovery , evaluating results

Shell 50% (operator)


NORTH AMERICA LNG PROGRESSING TO FID

2 x 6.5 mtpa first phase

25-year export license for 24 mtpa in place

Joint venture agreement signed

FEED contract awarded

Joint venture: Shell (50%), Kogas, Mitsubishi, PetroChina

Two phased liquefaction project with up to 2.5 mtpa capacity

Joint venture 49% Shell + 51% Kinder Morgan

Shell will be single LNG off-taker (100%)

FERC application filed in March 2014

FEED completed

LNG Canada Elba LNG


SHELL ARCTIC & NEAR ARCTIC

CANADA

RUSSIA

KAZAKHSTAN

NORWAY

GREENLAND

UNITED STATES

SALYM

KASHAGAN

SAKHALIN

NORTH POLE

ORMEN LANGE

BAFFIN BAY

NIGLINTGAK

CHUKCHI

BEAUFORT

KANUMAS

NORWAY BARENTS

Alaska, Chukchi

Greenland, Baffin Bay

Norway, Ormen Lange

Russia, Sakhalin

Russia, Salym

Kazakhstan, Kashagan


0%

50%

100%

Growth priorities unchanged

Driving competitive cash flow

CAPITAL EFFICIENCY INVESTMENT PRIORITIES

1 Resources plays, Majnoon, infill drilling

Organic capital investment Investment themes

0%

50%

100%

Growth priorities: 40%

Longer term: 25%

Engines: 35%

2015 organic capital

investment

50%

10%

40%

Pre-FID large project options

Base

Short-cycle projects1

Post-FID large projects

Conventional exploration

2015 organic capital

investment CFFO impact

of 2015 investment

’15-’16 ’17-’18

‘19+


0

70

140

0

25

50

0

4

8

12

2006 2007 2008 2009 2010 2011 2012 2013 2014

CASH PERFORMANCE + PAY-OUT

Cash flow $ billion

Cash flow from operations Cash flow from investments1

2014 dividend and buyback $15 billion

2015 dividend ~$12 billion

Buybacks in 2015 subject to oil prices

Gearing likely to increase in 2015

$ billion Gearing and pay-out

Dividend track record

$ billion

Dividends announced

2012-2014 2014

Dividend Free cash flow

%

-10%

0%

10%

20%

30%

-10

0

10

20

30

2009 2010 2011 2012 2013 2014

Gearing (RHS) Buybacks

Pay-out

Dividend is dividend announced

1 Includes MLP proceeds


PRIORITIES 2015+

Choices on new options

Supply chain management

Managing affordability + financial flexibility

Preserving our competitive growth pipeline in downturn

Continued ramp-up of 2014 start-ups

2015 transition year into 2016/17+ growth

Returns and cash flow

Competitive returns for shareholders

Restructuring underperforming businesses

Cost reduction programmes

Competitive financial performance

Capital efficiency Project delivery


QUESTIONS & ANSWERS

marvin odum - credit suisse 20th annual energy summit in vail, colorado, february 24, 2015

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