Royal Dutch Shell plc second quarter 2014 results analyst webcast presentation

Copyright of Royal Dutch Shell plc 1 August, 2013 1
DELIVERING INNOVATIVE &
COMPETITIVE PERFORMANCE
Lubricants Zhuhai blending and filling plant, China, 2009
SECOND QUARTER 2013 RESULTS
ROYAL DUTCH SHELL PLC
1 AUGUST 2013

BC-10, offshore Floating Production Storage and Offloading facility, Brazil, 2013
PETER VOSER
CHIEF EXECUTIVE OFFICER

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 (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’’,
‘‘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, 2012 (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, 1 August, 2013. 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.
DEFINITIONS AND CAUTIONARY NOTE

Q2 2013 results
 Q2 underlying earnings $4.6 billion; EPS -21%
 CFFO $12.4 billion
 Q2 2013 dividend $0.45 per share
 Nigeria security challenges
Growth delivery
 Maturing new options
 5 major start-ups to come in ‘13-’14:
 >$4 billion/year CFFO potential*
Capital discipline + long term approach
 >$3 billion buy-back completed; $4-5 billion ’13
 Pace of asset sales to increase
 Refocusing in Nigeria and North America shales
SUMMARY
Mars-B platform sail-away to final location, July 2013
*$100/bbl Brent scenario 2015+
(Kashagan phase 1, Mars-B, Gumusut-Kakap, Cardamom, Repsol LNG)

NIGERIA
Fire on the 24” TNP, Bodo West; April 2013
Illegal refinery, Krakrama; October 2012
NLNG Blockade, June/July 2013
LARGE SCALE CRUDE THEFT AND ASSOCIATED DAMAGE
LNG GAS SUPPLY DISRUPTION + BLOCKADE

FLNG Prelude Keel laying, S Korea, 2013
SIMON HENRY
CHIEF FINANCIAL OFFICER

SHELL OIL & GAS REALISATIONS INDUSTRY REFINING MARGINS INDUSTRY CHEMICALS MARGINS
$/barrel $/barrel $/tonne$/mscf
Oil
Gas (RHS)
US West Coast
US Gulf Coast coking
Rotterdam complex
Singapore
US ethane
Western Europe naphtha
NE/SE Asia naphtha
PRICES & MARGINS

Q2 2013 FINANCIAL PERFORMANCE
Earnings CCS basis; earnings and EPS excluding identified items
$ billion
Q2
2012
Q2
2013
$ billion
UPSTREAM 4.5 3.5
DOWNSTREAM (CCS) 1.3 1.2
CORPORATE & MINORITIES -0.1 -0.1
CCS NET EARNINGS 5.7 4.6
CCS EARNINGS, $ PER SHARE 0.92 0.73
CASH FROM OPERATIONS 13.3 12.4
SHARE BUY BACKS 0.9 1.9
DIVIDENDS 2.8 2.8
DIVIDEND, $ PER SHARE 0.43 0.45
EARNINGS Q2 2012 TO Q2 2013

UPSTREAM
million boe/day million tonnes
Oil
Gas
LNG Sales (RHS)
DOWNSTREAM
% availability volume
Refinery availability
Chemicals availability
Oil products sales (mln bbl/d)
Chemicals sales (million tonnes)
UPSTREAM
 Growth from Pearl GTL, Malaysia and Australia
 Nigeria sabotage
 Royalty reporting change
 Q2-Q2 underlying growth +2%
DOWNSTREAM
 Chemicals: planned downtime in Europe and
North America
 Underlying volume decrease
Q2 2013 OPERATIONAL PERFORMANCE

EARNINGS Q2 2012 TO Q2 2013
$ billion
Q2 2013 EARNINGS
Environment Choice
Q3 2013 OUTLOOK
 CONTINUED NIGERIA
DOWNTIME
 INCREASED UPSTREAM
MAINTENANCE:
~35 KBOE/D Q3-Q3
 ~$1.3 BILLION
EXPLORATION CHARGE
 HIGHER CHEMICALS
AVAILABILITY Q3-Q3

GROUP UPSTREAM DOWNSTREAM/CORPORATE
12 MONTHS CASH PERFORMANCE
$ billion $ billion $ billion
CFFO ex WC movements Acquisitions
Dividend
Buybacks
Capex
Asset Sales
Working capital movements
BALANCING CASH GENERATION, INVESTMENT + PAYOUT

BALANCE SHEET
$ billion
Non productive leases
Under construction
Heavy oil / Arctic
Deep water
FINANCIAL PERFORMANCE (12 MONTHS ROLLING)
kboe/day
$ billion
Earnings (clean)
Capex
Production (bottom axis scale)
UPSTREAM AMERICAS FINANCIALS
GROWTH PORTFOLIO
CASH GENERATION $5 BLN CFFO – 12 MONTHS
EARNINGS IMPACTED BY GROWTH COSTS
On stream Resources plays
200 4000
2012 acquisitions

PORTFOLIO DEVELOPMENT Q2 2013
Acquisition / entry
Notable discovery /
option progress
FID Start-ups
Divestment /
(Project re-
framing)
 G/U Phase 2
(215 kboe/d)
 TNP loop-line
(45 kboe/d)
 Basrah Gas
Company
 Nigeria
onshore review
 North America
review
 Vicksburg discovery
 Zabazaba-4 appraisal
 Stones
(50 kboe/d)
 Additional 5%
equity: Abadi
FLNG (35%)
 Repsol LNG
anti-trust clearance
 FEED LNG import
facility Philippines
 Bab Sour gas
(40%)
 Poland: ~100
Retail stations
UPSTREAM
ENGINE
INTEGRATED
GAS
RESOURCES
PLAYS
DEEP-WATER
FUTURE
OPPORTUNITIES
DOWNSTREAM
ENGINE
3 FINAL INVESTMENT DECISIONS; FURTHER PORTFOLIO PROGRESS

FREE CASH FLOW AND PAYOUT
$ billion
Free cash flow Dividend
Buyback
NET DEBT AND GEARING
$ billion
Gearing (LHS) Net Debt (RHS)
FINANCIAL FRAMEWORK
Gearing
range
2012-15 OUTLOOK:
CFFO $175-$200 BILLION
NET CAPEX $120-130 BILLION
* CFFO and capex outlook @$80-$100/bbl Brent and assumes improved US gas and
Downstream environment from 2012; CFFO excludes working capital movements
$ billion 2012-H1 2013 2012-15 Outlook*
Cash flow from operations 70 175-200
Net Capital Investment 49 120-130
 2013 net capex ~$40 billion
 Repsol LNG closing H2 ‘13
 New investments + options: Stones
(100%), Elba, gas to transport, others
 Includes ~$3 billion non-cash items

BC-10, offshore Floating Production Storage and Offloading facility, Brazil, 2013
PETER VOSER
CHIEF EXECUTIVE OFFICER

OUTLOOK
LONGER TERM
GROWTH
PRIORITY
ENGINES
FUTURE
OPPORTUNITIES
RESOURCES
PLAYS
DEEP-WATER
INTEGRATED
GAS
UPSTREAM
DOWNSTREAM
$ billion
2013 ORGANIC CAPEX
 FINANCIAL MANAGEMENT OF STRONG
PROJECT PIPELINE
 DIVIDEND COMMITMENT
 CAPITAL CEILING DRIVES HARD CHOICES

MARS B TLP SECURED ON LOCATION
Mars B extends Mars field life to 2050+
Mars + satellites ~1 billion boe
TLP towed to location in July
Start-up on schedule for 2014
100 kboe per day
Shell 71.5% (operator)
STONES FINAL INVESTMENT DECISION MAY 2013
Gulf of Mexico Lower Tertiary reservoir
>250 million boe
FPSO design
Start-up 2016 -17
50 kboe per day
Shell 100% (operator)
DEEP WATER GULF OF MEXICO
PROGRESS H1 2013
Mars-B TLP July 2013 Stones: FPSO model with disconnectable buoy

NORTH AMERICA RESOURCES PLAYS
REFOCUSSING OUR SHALES PORTFOLIO
CAPEX
$ billion
PRODUCTION
million boe per day bcfe per day
LRS Dry gas
Divestments Acquisitions
Liquids Gas
PORTFOLIO WILL BE REFOCUSED
 MATERIALITY
 FEWER SHALES OPERATING THEATRES
 BEST INTEGRATION OPTIONS
Gas
Liquids Rich Shales
Integration options/projects
GTL
Elba LNG
Gas-to-Chemicals
LNG to
Transport
LNG Canada

BASRAH GAS COMPANY, IRAQ NIGERIA SPDC
 $3.9 billion new 2013 investment in pipelines
and LNG feed gas
 2008-2012 divestments $1.8 billion (Shell)
 Strategic review of eastern onshore licenses
 ~80-100 kboe/d divestments potential (Shell)
 Shell Nigeria: focus on deep water + gas
 JV commenced operations 1st of May ‘13
 Processing 450 million scfe/day gas
 2 billion scfe/day potential
 Value driven; no volume entitlement
FUTURE OPPORTUNITIES
IRAQ GAS JV; NEW SPDC NIGERIA INVESTMENTS
Divestment completed
SPDC JV
Khor Al Zubair NGL plant Basrah, Iraq, Q2 2013
2012-13 FIDs
TNP loopline
Gbaran-Ubie phase 2
FYIP
Southern Swamp
NLNG
50 km

KASHAGAN DEVELOPMENT PHASE 1 OVERVIEW D ISLAND
 300 kboed average production
 2 train development; 2 year ramp-up sequence
 Shell 16.81%; production operations delegated
to Shell and KMG
KASHAGAN START-UP
Train 2
Train 1
Raw gas
compressors
Well heads
Living quartersUtilities
2013 H2: START-UP OF PRODUCTION FACILITIES
Kashagan, D island facilities, April 2013
D islandBolashak onshore Offshore flare lit 07/13
50km

Kashagan phase 1  Commencing start-up 2013 H2
Gumusut-Kakap  Platform loaded out to final location
Mars-B
 Topsides fitted
 TLP secured on location
Cardamom
 Installation of subsea manifold and
umbilical completed
 Tie-in to Auger platform underway
Repsol LNG  Completion 2013 H2
TOP 5 PROJECT START-UPS ‘13-’14
INTEGRATED
GAS
FUTURE
OPPORTUNITIES
DEEP-WATER
DEEP-WATER
DEEP-WATER
*$100/bbl Brent scenario, 2015+
>$4 BILLION/YEAR* CFFO POTENTIAL FOR SHELL

Q2 2013 results
 Q2 underlying earnings $4.6 billion; EPS -21%
 CFFO $12.4 billion
 Q2 2013 dividend $0.45 per share
 Nigeria security challenges
Growth delivery
 Maturing new options
 5 major start-ups to come in ‘13-’14:
 >$4 billion/year CFFO potential*
Capital discipline + long term approach
 >$3 billion buy-back completed; $4-5 billion ’13
 Pace of asset sales to increase
 Refocusing in Nigeria and North America
SUMMARY
Mars-B platform sail-away to final location, July 2013
*$100/bbl Brent scenario 2015+
(Kashagan phase 1, Mars-B, Gumusut-Kakap, Cardamom, Repsol LNG)

Groundbirch and Gundy, Canada, Upstream Americas, 2013
QUESTIONS & ANSWERS

Lubricants Zhuhai blending and filling plant, China, 2009
1 AUGUST 2013

Royal Dutch Shell plc second quarter 2014 results analyst webcast presentation

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