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Presentation 1

Royal Dutch Shell

Section D

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History

Royal Dutch Petroleum CompanyFounded in 1890, after licensed by King William III of the Netherlands to

work on petroleum wells in The Dutch East Indies

+

Shell Transportation and Trading CompanyAntique business importing and selling sea shells, founded in 1897 in London

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Royal Dutch Shell GroupCreated in February 1907

Merger was largely driven by the need to compete globally

Ownership ratio between the Netherlands and Britain 60:40

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Introduction

HQ: Netherlands, Registered office: London

Largest company in the world in the Oil & Gas industry, 1 of 6

“Supermajors”

Royal Dutch Shell’s revenue was equivalent to 84% of Netherland’s

GDP in 2013, valuing USD 555.8 Billion

Dynamic in all area of Oil & Gas Industry

Exploration Production Refining

Distribution & marketing Petrochemicals Power generation

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Introduction (Continued)

90 countries, 44,000 service stations, 92,000 employees

3.1 million barrels of oil equivalent produced per day

Topped the 2013 Fortune global Top 500 list

2014: Second in terms of revenue in the Financial Times list

Ventured into renewable energy resource market recently

Biofuel Wind Natural Gas

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World War I Period (1914-1918)

Main supplier to the British Expeditionary Force

Sole supplier of aviation fuel

Supplied 80% of British Army’s TNT

Volunteered all it’s shipping to British Admiralty

Inter-war Period

(1919-1939)

1920: Leading oil company

globally

11% of the world’s crude oil

supplier

Owned 10% of tanker tonnage

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Inter-war Period (1919-1939)

“You cannot carry on a war without oil. The capital of the Netherlands

East Indies is Britain and America, and the Dutch Government-in-exile

has fled to England; so I think it will be impossible to obtain oil... by

peaceful means.”

- Hara Yoshimichi, President of the Privy Council, Japan

“This all shows that the Netherlands East Indies are slowly but

certainly becoming an object which must be taken into account

in world affairs. The Netherlands East Indies, 25 years ago a

friendly corner in the Pacific, are now a card in the game of which

note must be taken.”

- Bataviaasche Nieuwsblad (Dutch colonial newspaper) on 28th

November, 1936

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World War II (1939-1945)

Shell Chemical Company specifically manufactured Butadienefor synthetic rubber

Used in military truck tyres

Continued production and supply of aviation fuel to Britain

Under then Chairman Henry Deterding, pro-Nazi stance wastaken by Royal Dutch Shell

Massive financial support by Fascist Deterding to Adolf Hitler

After his death in 1939 during combat the company was Pro-Allies

Lost 87 Shell ships in enemy action

Lost £90 million due to their “Scrotched Earth” protocol

Origin of “You can be sure of Shell” tagline to rebuild confidence

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Organization Hierarchy

Board of Directors

Chairman of the Board &

Managing Director

Vice Chairman of the Board

Deputy Managing Directors

Strategic corporate planning &

development

Administration and Human Resources

Finance MarketingRefinery

Manufacturing

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Jorma OllilaChairman of

the Board

2006

Ben van

BeurdenChief Executive

Officer

2014

Simon HenryChief Financial

Officer

2009

Matthias

BichselProjects&

Technology

Director

2009

John AbbottDownstream

Director

2013Hugh MitchellChief Human

Resources &

Corporate

Officer

2009

Andrew

BrownUpstream

Director

2012

Curre

nt E

xecutiv

e B

oard

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Products

Shell Bitumen

Cost effective and

sustainable solutions

Shell LPG

Dimethylether (DME) main

constituent

Shell Marine Products

Specialized lubricants for air

compressor, axles, bearings

Grease

Card services

Shell Fuel Card for Businesses

Shell Credit Card

Fuels

Shell Nitrogen Enriched fuel

V-Power fuel

Oil and Lubricants

For cars and bikes

Heavy-duty vehicles

Shell Chemicals

Petrochemicals used in plastics,

rubbers, fibers, foams

Further used in textile, paints, mattress

industries

Shell Aviation

Fuel and lubricants

Turbine and Piston Engine oil11

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Competitors

Exxon Mobil

Revenue: $428.3 billion

Daily production: 6.4 million

barrels

Reserves: 13.6 billion barrels

of Oil Equivalent

Chevron Corp.

Revenue: $222.5 billion

Daily production: 2.6 million

barrels

Reserves: 11.3 billion barrels

of Oil Equivalent

British Petroleum

Revenue: $375.5 billion

Reserves: 18.1 billion

barrels of Oil Equivalent

Daily production: 4.1 million

barrels

Total SA

Revenue: $237.0 billion

Daily production: 3.4 million

barrels

Reserves:

11.5 billion barrels of Oil Equivalent

Royal Dutch Shell

Revenue: $451.2 billion

Daily production: 3.1 million

barrels

Reserves: 13.6 billion barrels

of Oil Equivalent

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Corporate Social Responsibility

Shell Foundation, established in 2000

Initial endowment from Shell group: $250 million

Annual donations: $15 million

Voluntary social investment globally: $159 million

CSR programs include:

Aspire:

Program for SMEs in Africa

Assistance and Business

Capital

Excelerate:

Modern energy services to the

poor

India and Bangladesh

GACC:

Global Alliance for Clean Cookstoves

$6 million in 3 years

Tackle harmful smoke caused by open

fires or inefficient stoves13

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Financial Data & Endorsements

Total revenue: $451.2 billion

Operating income: $26.87 billion

Profit: $16.38 billion

Total asset: $357.51 billion

Total equity: $180.04 billion

Current stock price (London Stock

Exchange): £2403.5

Sponsors of F1 racing Ferrari

team and cars, since 1970

Belgian Grand Prix title sponsor

Title sponsors for Asia Talent Cup

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References

Clee, DJ. “Royal Dutch – Shell: 1919-1946” [Slide 5,6,7]

http://en.wikipedia.org/wiki/Royal_Dutch_Shell [Slide 2,3,4,11,13]

www.shell.com [Slide 10,12]

http://royaldutchshellplc.com/2011/03/31/you-can-be-sure-of-shell-

the-biggest-confidence-trick-in-history/ [Slide 7]

http://www.reuters.com/finance/stocks/companyOfficers?symbol=R

DSb.L&WTmodLOC=C4-Officers-5 [Slide 8,9]

http://www.londonstockexchange.com/exchange/prices-and-

markets/stocks/prices-search/stock-prices-

search.html?nameCode=RDSA [Slide 13]

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Presentation 2

Royal Dutch Shell

Section D

Recapitulation

Royal Dutch Petroleum Company + Shell Transportation and Trading

Company = Royal Dutch Shell Group (1907)

One of six “Supermajors”

Shell during World War I, Interwar Period & World War II: Advent of You can

trust Shell

Organizational Hierarchy: Global and Regional

Current Executive Board

Shell’s major product offerings

Competitors: Exxon Mobil, Chevron Corp., British Petroleum and Total SA

Corporate Social Responsibility Initiatives

Financial Data

Endorsements

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The world’s largest industry in terms of dollar value

Includes global processes of: exploration, extraction, refining, transporting,

marketing and retailing of petroleum products

Divided into 3 major operational strata: Upstream, Midstream and Downstream

World consumes 30 billion barrels (4.8 km³) of oil annually

Oil accounts for a large percentage of the world’s energy consumption: low of 32%

(Europe and Asia), high of 53% (Middle East)

“Supermajor” companies oil produce <15% of total world supply

National oil companies control >80% of the world's reserves of oil and natural gas

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The Petroleum Industry

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The Petroleum Industry

Country wise Oil Production in the decade between 1960 to 2006

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Global “Cartels” & Shell’s Region-wise Revenue

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Competitors’ Operational Analysis (2013)

Exxon Mobil

Downstream:

206,794m

GBP

Upstream:

23,567m

GBP

Corporate:

126m

GBP

Chevron Corp.

Downstream:

111,999m

GBP

Upstream:

15,481m

GBP

Corporate:

217m

GBP

British Petroleum

Downstream:

224,011m

GBP

Corporate:

600.73m

GBP

Upstream:

17,943m

GBP

Sinopec

Downstream:

128,799m

GBP

Upstream:

23,741m

GBP

Corporate:

133.46m

GBP

Royal Dutch Shell

Downstream:

258,286m

GBP

Upstream:

30,297m

GBP

Corporate:

97.88m

GBP21

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Company Percentage Valuation (USD)

Shell Oman Marketing 100.0% 13,636,350

Shell Pakistan Ltd. (SHEL) 76.1% 230,591,556

Hankook Shell Oil Co. Ltd. 53.8% 348,007,975

Shell Refining Company (FOM) Berhad 51.0% 263,297,700

Shell Oman Marketing Company SAOG 46.1% 238,909,290

Showa Shell Sekiyu KK 35.8% 1,501,054,181

Companhia de Gas de Sao Paulo-Comgas 22.8% 481,169,466

Codexis (CDXS) 14.4% 11,703,970

Chesapeake Energy Corp. 100.0% 20,000,000,00022

Shell’s Acquisitions & Holdings

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Name Percentage

Institutional Shareholders (999) 13.29%

Necigef Nederlands Centraal Inst Giraal Effectenverkeer BV 43.8%

BlackRock Investment Management (UK) Ltd. 3.54%

State Administration of Foreign Exchange 1.90%

The Vanguard Group, Inc. 1.41%

Scottish Widows Investment Partnership Ltd. 1.34%

Legal & General Investment Management Ltd. 1.34%

State Street Global Advisors Ltd. 1.01%

BlackRock Fund Advisors 0.84%

SSgA Funds Management, Inc. 0.83%

Franklin Mutual Advisers LLC 0.80%

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Who Owns Shell?

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Shell: The Last 4 Years2013 (in mill

USD)

2012 (in mill

USD)

2011 (in mill

USD)

2010 (in mill

USD)

Total revenue 451,235.00 467,153.00 470,171.00 368,056.00

Operating

Income26,870.00 37,722.00 42,598.00 32,197.00

R&D 6,596.00 4,411.00 3,389.00 3,055.00

Gross Profit 69,650.00 71,213.00 73,574.00 84,880.00

Possible reasons for drastic drop in Revenue in

2012-13:

Political turmoil in the oil-producing Middle

East

Particularly in Syria, Egypt, Lebanon (Gulf

nations)

Highly price sensitive industry

Affected all major players similarly: “trend”

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Shell In India

Largest international investor in India’s energy

sector: Invested US$1billion

1928: Burmah-Shell Oil Storage and Distributing

Company of India Ltd. Import and Marketing of

kerosene

1932, 15th Oct: Civil aviation arrived in India –

Shell fueled J.R.D. Tata’s solo flight from

Karachi to Mumbai

1950s: Introduced LPG as cooking fuel to Indian

homes

Shell Lubricants became 100% subsidiary of

Royal Dutch Shell by acquiring minority stake of

Bharat Petroleum

Corporate Office: Gurgaon; 6 regional offices

2000 fuel retail stations, 250 distributors, 400

board members

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Analysis of Safety Measures

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References

Shell Analyst Management Day London [Slide 10]

http://www.shell.com/ind/aboutshell/shell-businesses/india-business-structure/lubes-

india.html [Slide 9]

http://www.nasdaq.com/symbol/rds.a/ownership-summary#ixzz3BnDRtYlr [Slide 7]

http://www.4-traders.com/ROYAL-DUTCH-SHELL-PLC-4005177/company/ [Slide 4,7]

http://www.4-traders.com/EXXON-MOBIL-CORPORATION-4822/company/ [Slide 5]

https://www.google.com/finance?q=NYSE%3ARDS.B&fstype=ii&ei=3e4AVKDyDsO9lAWUtIDYDQ

[Slide 8]

http://en.wikipedia.org/wiki/Petroleum_industry [Slide 2,3]

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Presented by:

Naima Haque (2014169)

Nikunj Gulati (2014179)

Pankhuri Kasera (2014189)

Pragna Kunda (2014199)

Pulkit Agarwal (2014209)

Rakesh Choudhary (2014220)