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  • 1. Copyright of Royal Dutch Shell plc April 24, 2013 1 INVESTING FOR SUSTAINABLE GROWTH LONDON APRIL 24, 2013 ROYAL DUTCH SHELL PLC
  • 2. Copyright of Royal Dutch Shell plc April 24, 2013 2 DEFINITIONS AND CAUTIONARY NOTE 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 over which Royal Dutch Shell plc either directly or indirectly has control. Companies over which Shell has joint control are generally referred to “joint ventures” and companies over which Shell has significant influence but neither control nor joint control are referred to as “associates”. In this presentation, joint ventures and associates may also be 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.) 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. 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, 2012 (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, [insert date]. 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. 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. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.
  • 3. Copyright of Royal Dutch Shell plc April 24, 2013 3 ROYAL DUTCH SHELL PLC INVESTING FOR SUSTAINABLE GROWTH PETER VOSER CHIEF EXECUTIVE OFFICER
  • 4. Copyright of Royal Dutch Shell plc April 24, 2013 4 AGENDA Plenary Presentation & Q&A: Peter Voser and Chad Holliday: 9:00 – 10:00 Coffee & pastry break: 10:00 -10:35 Q&A (40 min each, 5 minute break): 10:40 – 13:40 Group A: North America update + Project delivery & safety: Marvin Odum and Matthias Bichsel Group B: Scenarios: Jeremy Bentham Group C: Oil Sands, Climate change: Lorraine Mitchelmore and Angus Gillespie Group D: Nigeria and RDS environmental policy, Water and Partnerships: Mutiu Sunmonu and Allard Castelein Lunch (all together): 13:40 - 14:30
  • 5. Copyright of Royal Dutch Shell plc April 24, 2013 5 SAFETY + ASSET INTEGRITY STANDARD ASSET INTEGRITY MANAGEMENT Integrity Leadership Technical Integrity Design Integrity Operating Integrity  Promoting Chronic Unease to avoid complacency  Technical process safety discipline team  Improving worksite hazard awareness 400 500 600 700 800 900 0 1 2 3 4 5 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 ‘GOAL ZERO’ ON SAFETY injuries – TRCF/million working hours million working hours Working hours TRCF MWCC testing (6,900 ft), GOM, July 2012
  • 6. Copyright of Royal Dutch Shell plc April 24, 2013 6 SRI FIELDTRIPS & ENGAGEMENTSUSTAINABILITY REPORTING TRANSPARENCY Nigeria, 2012 www.shell.com/sri
  • 7. Copyright of Royal Dutch Shell plc April 24, 2013 7 0 10 20 30 STRATEGY LONGER TERM GROWTH PRIORITY ENGINES ORGANIC CAPEX 2013 $ billion FUTURE OPPORTUNITIES RESOURCES PLAYS DEEP-WATER INTEGRATED GAS UPSTREAM DOWNSTREAM UPSTREAM  Growth strategy; price upside  Priority: deep-water, integrated gas, resources plays DOWNSTREAM  Optimize re-shaped portfolio  Selective growth CLIMATE CHANGE  Grow gas and biofuels  CCS and energy efficiency FINANCIAL OUTLOOK  Investing for growth and competitive payout  Through-cycle returns and risk management
  • 8. Copyright of Royal Dutch Shell plc April 24, 2013 8 ROYAL DUTCH SHELL PLC INVESTING FOR SUSTAINABLE GROWTH CHAD HOLLIDAY NON EXECUTIVE DIRECTOR CHAIRMAN CORPORATE & SOCIAL RESPONSIBILITY BOARD COMMITTEE
  • 9. Copyright of Royal Dutch Shell plc April 24, 2013 9 ACTIVITIES OF THE CSRC 2012 Activities  Nigeria Visit  Gannet platform, North Sea 2013 Plans  Alaska / Arctic  Local stakeholder engagement  Government and regulatory  Karoo, South Africa  Tight gas Gannet “A” platform, UK North Sea Whaling ceremony, Nuiqsut, Alaska
  • 10. Copyright of Royal Dutch Shell plc April 24, 2013 10 PARTNERSHIPS WORKING TOGETHER  Leverage outside expertise  Scientific organizations  NGOs  Governmental bodies EXAMPLE: IRAQ - MAJNOON  IUCN and Wetlands International  Government capacity strengthening  Biodiversity preservation  Marshes classified as Wetland of International Importance (Ramsar) Environmental Social Majnoon, June 2012 Majnoon, natural flooding, February 2013 MULTI STAKEHOLDER APPROACH
  • 11. Copyright of Royal Dutch Shell plc April 24, 2013 11 REVENUE TRANSPARENCY SHELL POLICY  Commitment to transparency  Country-level tax disclosure  Working with host governments  EITI board position MANDATORY REPORTING LEGISLATION  Implementation ongoing  Definitions of “project” and useful information  Potential conflict with host country laws and current contracts  Choice of which law to follow  Competitive disadvantage ~$25 BLN TAXES & ROYALTIES ~$85 BLN EXCISE TAX COLLECTED IN 2012 LEADERSHIP IN TAX TRANSPARENCY www.shell.com/payments
  • 12. Copyright of Royal Dutch Shell plc April 24, 2013 12 SCENARIO COMPARISON NEW LENS SCENARIOS Oil Gas Biomass/Biofuels Wind Coal Nuclear Other Renewables Solar 0 250 500 750 1,000 Exajoules 2000 2030 2060  40 years of scenarios  Designed to stretch management thinking  Testing business models  Contrasting plausible views of the future  Are not a forecast SCENARIOS IN SHELL
  • 13. Copyright of Royal Dutch Shell plc April 24, 2013 13 ROYAL DUTCH SHELL PLC INVESTING FOR SUSTAINABLE GROWTH PETER VOSER CHIEF EXECUTIVE OFFICER
  • 14. Copyright of Royal Dutch Shell plc April 24, 2013 14 POTENTIAL FUTURE WATER FOOTPRINT GLOBAL SHELL INITIATIVES  CEO Water Mandate  World Business Council for Sustainable Development OPERATIONAL LEVEL ACTIONS WATER-ENERGY-FOOD Groundbirch reclaimed water facility, Canada High: Medium: Low: Resources Plays Future Opportunities Upstream Engine Deep Water Downstream Engine Integrated Gas
  • 15. Copyright of Royal Dutch Shell plc April 24, 2013 15 GAS CCS BIOFUELS ENERGY EFFICIENCY CLIMATE CHALLENGE Global Manufacturing Raizen, BrazilSakhalin LNG, Russia Quest, Scotford complex, Canada
  • 16. Copyright of Royal Dutch Shell plc April 24, 2013 16 OIL OIL GAS GAS 0 1 2 3 4 SHELL PRODUCTION Million boe/d GAS Production Split Price Exposure 2011 2017/18 Production Split Expected Price Exposure OIL PRICE LINKED AFFORDABLE ABUNDANT ACCEPTABLE OIL PRICE LINKED 2012 0 200 400 600 800 1000 1200 CCGT USC Old Coal IGCC CARBON EMISSIONS Kg C02/MWhr CCGT: Combined Cycle Gas Turbine IGCC: Coal Integrated Gasification Combined Cycle USC: Ultra Super Critical Coal CCS: Carbon Capture & Storage With CCS Traditional
  • 17. Copyright of Royal Dutch Shell plc April 24, 2013 17 RAIZEN: BRAZIL  JV formed 2011, 50-50 Shell/Cosan  ~4,500 retail sites  2.2 bln litres ethanol capacity/yr SHELL  Sold 7.7 bln litres of biofuels in 2012  97% independently certified or met our own sustainability clauses BIOFUELS Bonsucro Certified Mills 2011 2012 Mechanically Harvested Cane 2011 2012 0 50 100 150 200 250 H2 '11 H1 '12 H2 '12 $ million SHELL EARNINGS FROM RAIZEN 2012 PROGRESS
  • 18. Copyright of Royal Dutch Shell plc April 24, 2013 18 QUEST CCS  FID September 2012  1 mln tonnes/yr C02 capture and storage potential  Reduce up to 35% of upgrader emissions  Safe storage certification by DNV (1st time for a CCS project)  Expected onstream 2015 CARBON CAPTURE AND STORAGE (CCS) & ENERGY EFFICIENCY ENERGY INTENSITY 85 90 95 100 105 0 0.5 1 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 Upstream excl. Oil Sands & GTL Refining Index Chemicals Index Upstream – gigajoules/tonnes production Index EXAMPLE: PULAO BUKOM  ~$230 mln co-gen investment FID’d 2012  C02 savings of ~0.1mtpa when onstream  Manufacturing wide rollout of Energy management software Quest CCS project, Canada oil sands
  • 19. Copyright of Royal Dutch Shell plc April 24, 2013 19 0 100 200 300 400 500 2005 2006 2007 2008 2009 2010 2011 2012 0.0 0.5 1.0 2008 2009 2010 2011 2012 PERSONAL SAFETY INDICATORS per million working hours Shell in Nigeria TRCF (total recordable case frequency) All data on a Shell operated basis SHELL IN NIGERIA 2012 PROGRESS  Significant operational spill volume reduction  Remediation backlog essentially cleared  Forcados Yokri & Southern Swamp AGG/Domestic gas FID’s 0 20 40 60 80 0 2 4 6 8 2006 2007 2008 2009 2010 2011 2012 thousand tonnes SPDC: OPERATIONAL SPILLS volume of spills: number of spills (RHS): # REMEDIATION PERFORMANCE # of spills sites No. Spills in Year all causes Total Outstanding
  • 20. Copyright of Royal Dutch Shell plc April 24, 2013 20 NIGERIA: SPDC JV FLARING SPDC = 30% Shell, 55% NNPC, 10% Total, 5% Agip; all data on 100% basis SPDC JV FLARE VOLUMES & INTENSITY MMscf per day Mscf/bbl 0.0 0.2 0.4 0.6 0.8 1.0 1.2 0 300 600 900  AGG/Dom gas FIDs  Completion in 2014/2015; ~ $4 billion  Gas gathering, facility upgrades and new oil production  When complete this should take SPDC JV flaring intensity below current global industry average FORCADOS YOKRI & SOUTHERN SWAMP Southern Swamp, Proposed gas plant at Tunu Flaring Flaring intensity (RHS) 2000 – 2012: 80% REDUCTION IN FLARING
  • 21. Copyright of Royal Dutch Shell plc April 24, 2013 21 NIGERIA OIL THEFT Illegal refining, Imo River, Q3 2011 Attempted theft, Trans Niger Pipeline, Q3 2012 Large scale illegal refining along the Nembe Creek trunk line, Q1 2013
  • 22. Copyright of Royal Dutch Shell plc April 24, 2013 22 NIGERIA SPDC: INDUSTRIAL SCALE CRUDE THEFT Niger Delta wide UN theft estimate of 150,000 bbl/d or ~55,000,000 bbl/year 2012 Spills due to sabotage on SPDC rights of way or from SPDC facilities 24,545 bbl 2012 Operational Spills 1,359 bbl 0 75 150 kbbl per day Measured as stolen from SPDC trunk lines: ~60,000 bbl/d or ~22,000,000 bbl/year ~70% recovery of spilled oil during cleanup in 2012
  • 23. Copyright of Royal Dutch Shell plc April 24, 2013 23  2 top holes drilled  >20 vessels and 2,000 employees/ contractors, ~12,000 employee rotations  Positive support from community  Kulluk rig incident  2013 pause in activity 2012 ALASKA PERFORMANCE DRILLING FLUID BLOW OUT PREVENTER CAPPING STACK ARCTIC CONTAINMENT SYSTEM 1 1 2 2 3 4 3 4 MULTIPLE DRILLING BARRIERS Photo credit to Unified Command 300 km Kulluk towed to safe harbour in Kiliuda Bay, Jan. 2013
  • 24. Copyright of Royal Dutch Shell plc April 24, 2013 24 BRENT DECOMMISSIONING  Brent has produced 2 billion bbls of oil and 5.8 tcf of gas  Brent “Delta” ceased production Dec 31st 2011  3 other platforms continue to produce  Well abandonments already started  Decommissioning plan to DECC Q1 2014 STAKEHOLDER ENGAGEMENT  12 stakeholder dialogue sessions  Brent “E-News”  Independent review group for studies  The Environmental Council provides facilitation for stakeholder engagement  Cell Management stakeholder task group  www.shell.co.uk/brentdecom Brent size comparison with Canary Wharf Brent field schematic, UK North Sea
  • 25. Copyright of Royal Dutch Shell plc April 24, 2013 25 RESOURCES PLAYS TIGHT GAS/LIQUIDS RICH SHALE 2012 DEVELOPMENTS  Center for Sustainable Shale Development (CSSD) launched  Shell one of two founding industry partners; eNGOs, foundations  15 audited performance standards  Appalachia region  GHG quantification work on-going with EDF and University of Texas Austin  China operational build-up
  • 26. Copyright of Royal Dutch Shell plc April 24, 2013 26 SUSTAINABLE DEVELOPMENT EMBEDDED IN SHELL STRATEGY  Building trust  Communities, Society, Industry  Taking Action  Cleaner energy, CCS, water  Partnerships and Principles  Multi-stakeholder approach  Environmental, Social “As part of the Shell Business Principles, we commit to contribute to sustainable development. This requires balancing short and long term interests, integrating economic, environmental and social considerations into business decision-making.” Shell General Business Principles Reed bed filtration, PDO, Oman
  • 27. Copyright of Royal Dutch Shell plc April 24, 2013 27 QUESTIONS & ANSWERS INVESTING FOR SUSTAINABLE GROWTH
  • 28. Copyright of Royal Dutch Shell plc April 24, 2013 28 INVESTING FOR SUSTAINABLE GROWTH LONDON APRIL 24, 2013 ROYAL DUTCH SHELL PLC