royal dutch shell plc barclays new ......are a number of factors that could affect the future...

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


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


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


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


Source: Shell analysis

Other Renewables


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


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


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


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


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


PRELUDE FLOATING LNG


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


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


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


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


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


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


FTSE100 dividend growth

SUMMARY

Performance focus H1 ‘12 earnings $13 bln; EPS unchanged


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


Earnings CCS basis, earnings and EPS excluding identified items

ROYAL DUTCH SHELL PLCBARCLAYS NEW YORK

QUESTIONS & ANSWERS


ROYAL DUTCH SHELL PLCBARCLAYS NEW YORKBARCLAYS NEW YORK

NEW YORKSEPTEMBER 5, 2012


SEPTEMBER 5, 2012

royal dutch shell plc barclays new ......are a number of factors that could affect the future...

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