Ben van Beurden – Barclays CEO Energy-Power Conference in New York, New York. September 3, 2014

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Ben van Beurden, Chief Executive Officer of Royal Dutch Shell plc presented at the Barclays CEO Energy-Power Conference in New York, New York.

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Ben van Beurden – Barclays CEO Energy-Power Conference in New York, New York. September 3, 2014

  1. 1. Copyright of Royal Dutch Shell plc 3 September 2014 1 BALANCING GROWTH & RETURNS Barclays CEO Energy-Power Conference SEPTEMBER 3, 2014 ROYAL DUTCH SHELL PLC
  2. 2. Copyright of Royal Dutch Shell plc 3 September 2014 2 BEN VAN BEURDEN CHIEF EXECUTIVE OFFICER ROYAL DUTCH SHELL PLC
  3. 3. Copyright of Royal Dutch Shell plc 3 September 2014 3 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, 3 September, 2014. 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.
  4. 4. Copyright of Royal Dutch Shell plc 3 September 2014 4 2014 PRIORITIES  Returns and cash flow  Competitive returns for shareholders  Take hard choices on new options  Increase asset sales  Reduce pace of growth investment  Major deep-water start-ups in 2014  Integrate 2013 acquisitions Deliver new projects Enhance our capital efficiency Improve our financial performance
  5. 5. Copyright of Royal Dutch Shell plc 3 September 2014 5  Balancing risk and reward  Strict investment hurdles and price screens drive returns ASPIRED PORTFOLIO ATTRACTIVENESS Growth & returns Opportunity scale RESILIENCE Risk, perfo rmance & uncertainty PORTFOLIO MANAGEMENT STRATEGIC INTENT RESULTS & PAY-OUT
  6. 6. Copyright of Royal Dutch Shell plc 3 September 2014 6 FUTURE OPPORTUNITIES RESOURCES PLAYS INTEGRATED DEEP-WATER GAS UPSTREAM DOWNSTREAM INVESTMENT PRIORITIES + STRATEGIC INTENT 1 Iraq, Nigeria onshore (SPDC), Kazakhstan, heavy oil, Arctic Engines  Free cash flow businesses  Maintain competitiveness  Asset integrity + selective growth Growth Priority  Global leadership established  High-grading our rich opportunity set Longer Term  Major potential; managing non-technical risks  Slower pace + capital allocation  Credible, competitive, affordable  Investment choices driven on a global thematic basis 1
  7. 7. Copyright of Royal Dutch Shell plc 3 September 2014 7 DRIVING PERFORMANCE IN SHELL Policy from 1.1.2015  Performance units New shareholding requirements  Drive bottom line focus  Credible, competitive and affordable plans  Drives decisions on spending + divestment  Individual performance management  Stronger accountability for outcomes  New shareholding requirements for senior executives CEO 7 x base pay CFO 4 x base pay Top 200 executives below Executive Committee: 1.5 x base pay Senior Executives
  8. 8. Copyright of Royal Dutch Shell plc 3 September 2014 8 0 5 10 15 20 25 0 10 20 30 40 50 2010 2011 2012 2013 Q214 -5 4Q rolling 0 5 10 15 -10 0 10 20 30 2010 2011 2012 2013 Q214 4Q rolling 0 10 20 2010 2011 2012 2013 Q214 4Q rolling IMPROVE FINANCIAL PERFORMANCE H1 2014 OUTCOME CCS earnings + ROACE excluding identified items Earnings + ROACE $ billion Cash flow $ billion Dividend + buy-back $ billion Upstream Downstream Corporate/Other Dividend declared Buy-back CFFO CFFI  Balancing returns + growth  Competitive shareholder returns  Expecting > $30 billion distributions to shareholders 2014-15 ROACE (RHS) Free cash flow (RHS) $ billion
  9. 9. Copyright of Royal Dutch Shell plc 3 September 2014 9 IMPROVE FINANCIAL PERFORMANCE OIL PRODUCTS ROACE: CCS earnings excluding identified items Resilience Attractiveness Addressing underperforming portfolio 0 2 4 6 8 10 12 0 2 4 6 8 10 12 2010 2011 2012 2013 Q214 rolling Downstream CFFO + ROACE $ billion % Exit:  Italy   Norway  Australia   Denmark  others Fix:  Motiva  Singapore fuels  Pernis + Rheinland  others Selective Growth: Chemicals China LNG for transport  Premium fuels + lubes  Refinery crude flexibility  others completed  Announced divestments 2014 year to date:  180,000 b/d refinery capacity  300,000 b/d marketing  US mid-stream MLP proposal CFFO ROACE (RHS)
  10. 10. Copyright of Royal Dutch Shell plc 3 September 2014 10 -2 0 2 4 6 8 10 2010 2011 2012 2013 2014 H1* 2014E NORTH AMERICA RESOURCES PLAYS RESTRUCTURING SHELL PORTFOLIO * 2014 H1: 12 month rolling Elba LNG LNG Canada Groundbirch Deep Basin/Kaybob Foothills/Pembina Gas-to-chemicals Appalachia Liquids rich shales (LRS) Gas monetization options Permian Dry gas Gas/LRS Resilience Attractiveness $ billion LRS Dry gas Divestments Acquisitions -50% -20% North Americas capital investment  Dry gas:  Canada LNG supply  Appalachia appraisal  Liquid rich shales:  Appraisal in Western Canada + Permian  Profitability focus Portfolio Exit:  Eagle Ford   Mississippi Lime   Rockies LRS   Deep Basin (North)   Foothills (Burnt Timber)   Appalachia (Slippery Rock)  Pinedale  Haynesville Maintain / Grow:  W. Canada gas + integration plays  Appalachia  W. Canada LRS  Permian LRS LRS Plays completed Hold or Divest
  11. 11. Copyright of Royal Dutch Shell plc 3 September 2014 11 ENHANCE CAPITAL EFFICIENCY Take hard choices on new options  More selectivity: FIDs >$500 million require CEO approval at FEED  Maturing new projects: LNG, deep-water Increase asset sales  ~$10 billion completed year-to-date  US midstream MLP proposal Reduce pace of growth investment  2014 organic spending ~$35 billion  Scrip cancellation reflects improving FCF  completed 2014+ Asset sales / license expiry  Wheatstone LNG   BC-10 dilution   North America non-core LRS   Italy Downstream   ADCO license expiry   Woodside market sell down   Australia  / Denmark / Norway Downstream  Nigeria onshore  Mature UKCS + GOM assets  Pinedale + Haynesville dry gas  Others  340,000 boed upstream  180,000 b/d refining  300,000 b/d marketing
  12. 12. Copyright of Royal Dutch Shell plc 3 September 2014 12 0 20 40 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 DELIVER NEW PROJECTS 2014 START-UPS Mars B – February 2014 start-up Mars B production ramp-up progress Cardamom: H2 2014 start-up Gumusut-Kakap: H2 2014 start-up Shell 72%, 100 kboe/d Shell 100%, 50 kboe/d Shell 33%, 135 kboe/d kboed
  13. 13. Copyright of Royal Dutch Shell plc 3 September 2014 13 CONVENTIONAL EXPLORATION PROGRESS DELIVERY 2014  Rosmari & Marjoram gas discoveries in Block SK318  New Deep-water gas potential  Shell 85%  4 near field gas discoveries in 2014 (100% success rate)  Adding gas to Malaysia heartland  Shell 30%  Deep-water oil discovery 16 km south of Appomattox  ~100 million boe  Shell 57.2%  3rd Norphlet discovery Malaysia Deep-water Gas Malaysia, Block SK408 GOM, Rydberg Deep Doo Sung rig Gorek-1 3D Noble Globetrotter 1
  14. 14. Copyright of Royal Dutch Shell plc 3 September 2014 14 0 25 50 UP STREAM DOWN STREAM CASH FLOW AND PAY-OUT Cash generation $ billion, Q214 4Q rolling Gearing + balance sheet $ billion Cash flow from operations Net cash used in investing activities Dividend and buy back 0% 10% 20% 30% 0 10 20 30 2010 2011 2012 2013 14Q2 Gearing range Net debt Gearing (RHS) 12 months rolling 0 6 12 2006 2007 2008 2009 2010 2011 2012 2013 14Q2 Dividends declared 12 months rolling Dividend track record $ billion  Scrip dividend cancelled from Q2 2014  Buy back $7-8 billion 2014-15 combined  ~$1.6 billion H1 2014
  15. 15. Copyright of Royal Dutch Shell plc 3 September 2014 15 COMPETITIVE PERFORMANCE: BALANCING GROWTH AND RETURNS 4Q ROLLING Free cash flow: cash flow from operations less cash used in investing activities; ROACE underlying: European companies: CCS basis excluding identified items. US companies: reported earnings excluding special non-operating items. Cash flow from operations $ billion Free cash flow $ billion ROACE – underlying % 0 10 20 2010 2011 2012 2013 2014 Shell Peer group  Driving competitive performance 0 20 40 60 2010 2011 2012 2013 2014 -10 0 10 20 30 40 2010 2011 2012 2013 2014
  16. 16. Copyright of Royal Dutch Shell plc 3 September 2014 16 2014 PRIORITIES  Returns and cash flow  Competitive returns for shareholders  Take hard choices on new options  Increase asset sales  Reduce pace of growth investment  Major deep-water start-ups in 2014  Integrate 2013 acquisitions Deliver new projects Enhance our capital efficiency Improve our financial performance
  17. 17. Copyright of Royal Dutch Shell plc 3 September 2014 17 QUESTIONS & ANSWERS

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