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1 Copyright of Royal Dutch Shell plc 13 March, 2014

BALANCING GROWTH & RETURNS MANAGEMENT DAY 2014

13 MARCH 2014 ROYAL DUTCH SHELL PLC


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 (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, 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, 13 March, 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.


BEN VAN BEURDEN CHIEF EXECUTIVE OFFICER

ROYAL DUTCH SHELL PLC


EXECUTING A CONSISTENT, LONG-TERM STRATEGY

Unrelenting focus on HSSE

Technology, integration and scale

Disciplined capital investment by strategic theme

Growth in cash flow through-cycle

Competitive shareholder returns

Shearwater platform North Sea, UK


AGENDA

Ben van Beurden Chief Executive Officer

Simon Henry Chief Financial Officer

John Abbott Downstream Director

Marvin Odum Upstream Americas Director

Question & answer session

Panel break-outs:

Projects & Technology + Upstream International

Upstream Americas

Downstream


FOCUS ON SAFETY 2013 UPDATE

Goal Zero on safety Injuries – TRCF/million working hours

Spills - operational Volume in thousand tonnes

Energy intensity - refineries Energy Intensity Index (EEITM)

million working hours

Working hours (RHS) TRCF

HSSE priority

Performance + transparency

Process safety trend Number of incidents

Tier 1 incidents Tier 2 incidents


Balancing risk and reward

Strict investment hurdles and price screens drive returns

ASPIRED PORTFOLIO

ATTRACTIVENESS

Growth & returns

Opportunity scale

RESILIENCE

Risk, performance &

uncertainty

PORTFOLIO MANAGEMENT

STRATEGIC INTENT

RESULTS & PAY-OUT


FUTURE OPPORTUNITIES

RESOURCES PLAYS

DEEP-WATER INTEGRATED 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


FINANCIAL PERFORMANCE TRACK RECORD

Earnings $ billion CCS

Cash flow from operations $ billion

Total capital investment $ billion

Payout $ billion

Dividend declared Buyback Organic capital investment

Upstream Downstream Corporate Identified items

Acquisitions


FINANCIAL PERFORMANCE COMPETITIVE POSITION

EPS on reported CCS basis

Earnings per share growth – 3 years % growth 2010-2013

Cash flow per share growth – 3 years

Total shareholder return – 3 years 2013 ROACE

ROACE: earnings on reported local GAAP basis

Shell Competitors

% growth 2010-2013

% growth 2010-2013


Changing emphasis in 2014

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


IMPROVE FINANCIAL PERFORMANCE: RESPONDING TO NEW MARKET DYNAMICS

North America resources plays Oil Products

Geelong refinery, Australia Groundbirch, Canada

~$80 billion capital employed

Financial performance not acceptable

Multi-year turn-around Priorities: Portfolio restructuring + potential write-downs Cost reduction + margin improvement Invest for financial resilience + selective growth


IMPROVE FINANCIAL PERFORMANCE CONTINUED DRIVE ON COST EFFICIENCY

Enterprise framework agreements (EFAs) cumulative # EFAs negotiated

Price positioning of EFAs EFA prices vs. range of quotes received from market

Supply chain efficiency:

~$65 billion / year spend

Standardisation + replication:

Platforms, subsea equipment, facilities

Drilling efficiency:

Rig contracts

Repeatable wells + design

EFA price

%


IMPROVE FINANCIAL PERFORMANCE IN UPSTREAM ENGINE

Production decline halted

focus on up-time

reservoir development

sub-surface dynamics

Innovative EOR schemes

2012-13 impacted by high levels of maintenance

2013 maintenance downtime 50 kboe per day (vs. 35 kboe per day downtime in 2012)

Address late life assets: fix or divest

PDO Oman

UK North Sea kboe per day, Shell share kboe/day, Shell share

2012:117kboe/d

2013: 91kboe/d

Actual production assumed production with continued decline


IMPROVE FINANCIAL PERFORMANCE DRIVE TO FURTHER ENHANCE INTEGRATED GAS PROFITABILITY

Includes LNG + GTL; earnings excluding identified items

Increasing Shell’s managed sales Total LNG volumes in mtpa

Shell’s LNG portfolio

LNG Peru

Altamira

Baja

Nigeria

Hazira

NWS Pluto

QG-4

Elba

Spain

Prelude Gorgon

Atlantic LNG

Oman

Sakhalin

Malaysia

Brunei

Cove Point

LNG supply

Under construction

Regasification

Trading flows

2014

2013 >25 mtpa

>30 mtpa

2017 ~40 mtpa

$ billion

Integrated Gas financial performance

Earnings ~400%

Earnings CFFO ROACE (RHS) JV marketed Shell directly managed

QG4 Pearl GTL

Pluto LNG North Rankin

Repsol LNG Elba Gorgon T1-3 Prelude FLNG

North West Shelf Sakhalin


2014 PRIORITIES












DECONSTRUCTING OUR PORTFOLIO

2013 $ billion CCS earnings CFFO

Organic capital

investment

Capital employed ROACE

Engi

nes

5 8 5 64 7%

6 10 7 17 36%

Gro

wth

Prio

ritie

s 9 12 6 57 17%

3 5 9 23 15%

Long

er T

erm

(4) 0 6 25 (12)%

1 3 5 32 3% FUTURE

OPPORTUNITIES1

RESOURCES PLAYS

DEEP-WATER

INTEGRATED GAS

UPSTREAM ENGINE

DOWNSTREAM ENGINE Mature + drives free cash flow

Profitable + growing

Returns impacted by growth spend

CCS earnings excluding identified items; ROACE based on CCS earnings excluding identified items 1 Iraq, Nigeria onshore (SPDC), Kazakhstan, Arctic, heavy oil


ENHANCE CAPITAL EFFICIENCY TAKE HARD CHOICES

FEED FID On stream

Explore

Feasibility study

Identify & Assess Select Define Execute On stream

12 billion boe 7 billion boe 11 billion boe

Hard choices on growth projects: US GTL Alaska LNG FID pause in Asia Pacific

AOSP debottlenecking Wheatstone Cove others

~$8 billion capital investment ~$27 billion capital investment

Low cost options + Early high-grading Increase predictability Flawless execution of major spend

2014


ENHANCE CAPITAL EFFICIENCY MAKING OUR PLANS CREDIBLE, COMPETITIVE, AFFORDABLE

~150 performance units implemented

Targeted growth spend

Address underperforming assets

Increase divestment of non-core positions

Sharpen our focus:

Asset sales

Wheatstone LNG

BC-10 dilution

UA resources plays

Nigeria onshore

Norway DS

Italy DS

Australia DS

Others

Resilience

Attr

activ

enes

s

Keep and grow

Fix or divest

Exit

$15 billion divestments 2014-15


IDENTIFY/ASSESS

US GTL - CANCELLED Gorgon LNG T4 - PAUSE Sunrise LNG - PAUSE

ENHANCE CAPITAL EFFICIENCY CAPITAL CEILINGS + OPTION SET DRIVE HARD CHOICES

Integrated Gas

EXECUTE

Gorgon LNG T1-3 Prelude FLNG Wheatstone - SOLD MMLS LNG (Elba)

SELECT

Arrow LNG - REDESIGN Browse LNG - REDESIGN Abadi LNG ph2 LNG Canada Sakhalin T3

DEFINE

Abadi LNG ph1

ON STREAM

Atlantic LNG Brunei LNG Malaysia LNG Nigeria LNG Northwest Shelf Oman LNG Peru LNG Pluto Qatargas 4 Sakhalin LNG

MTPA: 17.6 MTPA: 0.9 MTPA: 7.5 MTPA: 26.1 START

UP FID

Shell share equity liquefaction capacity in mtpa


ENHANCE CAPITAL EFFICIENCY 2013-14 CAPITAL SPENDING

Total capital investment $ billion

Future opportunities Resources plays

Downstream (incl. Corporate)

Europe Deep-water Africa/Middle East/CIS

Asia Pacific Americas

Upstream Integrated gas Upstream engine Downstream (incl. Corporate)

Strict capital ceilings

More competitive returns


2014 PRIORITIES












PROJECT MANAGEMENT + BENCHMARKING

IPA – Independent Project Analysis by Industry Benchmarking Consortium

IPA project benchmark Upstream project status Construction time elapsed %

1Q 2Q 3Q 4th Quartile

Upstream cost Downstream cost

Oversight and accountability

Track record

Construction time elapsed %


Perdido Singapore: Chemicals North America: tight gas Gbaran-Ubie Gjoa AOSP-1

West Qurna Schoonebeek Raízen North America: tight gas Qatargas 4 LNG Pearl GTL Qarn Alam

Harweel Caesar Tonga ph1 Gumusut-Kakap (early

production) Pluto LNG North America: tight gas Eagle Ford

Majnoon FCP BC-10 ph2 Kashagan Basrah gas comp. North Rankin Amal steam AOSP debottlenecking

Repsol LNG acquisition Mars B Petai Cardamom Gumusut-Kakap others

DELIVER NEW PROJECTS TRACK RECORD 2010-14

Gumusut-Kakap

Raízen

2010 2011 2012 2013 2014

Key Upstream project start-ups: Pearl GTL

Consistent delivery of new projects

2013 impact: $9 billion CFFO from 2010+ start-ups

Production growth from key start-ups

kboe per day $ billion

Production Cash flow from operations (RHS)


CONVENTIONAL EXPLORATION PORTFOLIO + THEMES

Increased focus in our exploration spending

Spend including deals

($ billion)

Resources/potential added1

(billion boe) Oil & gas split (%)

2011-2013 2011-2013 2013 performance

ARCTIC ~2 0 Alaska drilling pause

FRONTIER Under explored basins

~4 0.9

(95% oil, 5% gas) Albania: Shpirag-2 Brazil: Libra access

HEARTLANDS New plays in Shell producing basins

~8 2.6

(25% oil, 75% gas)

GOM: Vicksburg Australia: Kentish Knock Nigeria: Zabazaba appraisal

NEAR FIELD High value

~1 0.4

(35% oil, 65% gas)

19 near field discoveries Nigeria (SPDC), Oman, Egypt,

Netherlands, Brunei, Australia

Prospect size

(million boe)

Time to development

(years)

15+

10+

3+

<3 5-50

50-250

>250

>500

1 includes acquisitions


GLOBAL RESOURCES PLAYS BUILDING CAPABILITIES IN LONG TERM OPPORTUNITY

Total resources plays capital investment

E&A On stream

Gas Liquids Rich

2013 production 0.3 mboe/d

2014 exploration spend $3 billion

2013 exploration and appraisal success

$ billion

Resources + potential

Future potential

On stream

Execute (under construction)

Select/Define

14.4 billion boe

Americas International

Liquids rich shales (underlined)

ACCESS Tunisia

EXPLORATION Pembina Turkey Colombia Russia Sichuan Germany Ukraine

APPRAISAL/PILOT Argentina Kaybob Permian Appalachia Changbei 2 Oman

DEVELOPMENT Early Groundbirch

Mature Pinedale Haynesville Foothills Deep Basin Changbei

Western Canada

Colombia

Argentina Neuquen

Lower 48 USA

Germany Ukraine

Turkey

Oman Sichuan

Changbei

Arrow

Changbei 2

Russia

Future potential = discovered + prospective resources

Tunisia


SIMON HENRY CHIEF FINANCIAL OFFICER



FINANCIAL FRAMEWORK AND PRIORITIES

Priorities for cash

1. Debt service

2. Dividends: growth policy

3. Capital investment: disciplined through cycle growth

4. Return surplus cash: buy-backs

CASH PERFORMANCE

CFFO drives investment + payout

INVESTMENT

Affordability, profitability, portfolio

PAY-OUT

Dividend linked to business results

BALANCE SHEET

0 – 30% gearing through cycle

Conservative balance sheet underpins financial framework


UP STREAM

DOWN STREAM

CASH FLOW AND PAY-OUT

Cash generation $ billion

Dividend track record $ billion

Strong balance sheet $ billion

Cash flow from operations Asset sales

Capex + equity acc. investments

$ billion 2011-13 2013

UP STREAM

DOWN STREAM

Acquisitions

Dividend and buy back

Gearing range

Net debt

Dividends declared

Gearing (RHS)

12 months rolling

Strong balance sheet

Generating surplus cash

Dividend track record


CASH FLOW + RETURNS

ROACE %, 4Q rolling

Cash flow from operations $ billion, 4Q rolling

Shell

peer group peer group Shell

ROACE: earnings on reported local GAAP basis


DECONSTRUCTING OUR CAPITAL INVESTMENT

2014 organic capital investment

$ billion

Balancing growth + returns

Exploration + pre-FID

Key growth projects

Care + maintain

Smaller growth projects

Preparing new options

Driving new upstream growth

Maintaining competitive cash generation


SEC PROVED RESERVES POSITION

1 Excludes acquisitions, divestments and price impacts 2 Reserves attributable to Royal Dutch Shell shareholders

2013 Reserves performance

2013 RRR 131%

2011-13 RRR 91%

Reserves life at end 2013 ~11.5 years

2011-13 Reserves average performance

Organic1 additions ~1.4 billion boe

Production ~1.2 billion boe

Organic reserves replacement 112%

Reserves Replacement

SEC proved reserves

Major reserves additions

2011-13 Reserves additions

2011-13 2013

Organic 112% 123%

Organic incl. price effects 95% 127%

Net Reserves2 91% 131%

(billion boe) 2011 2012 2013

Organic reserves additions 1.5 1.0 1.5

Production 1.2 1.2 1.2

Net Reserves2 14.2 13.6 13.9


Carmon Creek ph1&2 Rabab Harweel Erha North ph2 BC-10 ph3 Stones Groundbirch

billion boe

RESOURCES UPDATE

Longer-term upside

2009 2010 2011 2012 2013

On stream Execute (under construction)

Select/Define Production

NWS Gas NR2 BC-10 ph2 Amal Steam Majnoon FCP

Vito BMS-54 Zabazaba Appomattox Permian

Converting resources to production… 2013 resources by theme

Deep-water Integrated gas Upstream engine

Resources plays Future opportunities

Rebuilding on stream resources 2009-13


Start-up 2013 start-up 2014-2015 2016-2018

Bukom ECC debottleneck Bukom cogeneration Jack St.Malo pipeline Singapore LOBP

Westward-Ho pipeline

Amal Steam Corrib

Clair ph2 Schiehallion Redevelopment Tempa Rossa Rabab Harweel integrated

project

North Rankin 2 Gorgon LNG T1-3 Prelude FLNG MMLS LNG (Elba)

BC-10 ph2 Mars-B Cardamom Gumusut Kakap Sabah Gas KBB Bonga North West Petai

BC-10 ph3 Malikai Stones Erha North ph2

North America tight gas + liquids rich shales

AOSP debottlenecking Kashagan ph1 Majnoon FCP Basrah Gas Company

Southern Swamp AG Gbaran-Ubie ph2 Trans Niger loopline Carmon Creek ph1+2 Forcados Yokri

Peak production (kboe/d)

200 335 560

NEW START-UPS 2013-2018

29 major projects

Strong project flow

Production @ $80 Brent scenario; Shell share at peak

Bonga North West

Gumusut-Kakap

Shell operated FUTURE

OPPORTUNITIES

RESOURCES PLAYS

DEEP-WATER

INTEGRATED GAS

UPSTREAM ENGINE

DOWNSTREAM ENGINE


BALANCING GROWTH + RETURNS

Outlook assumes 2013 macro; ROACE CCS earnings excluding identified items

Positive outlook for ROACE + CFFO

Near-term growth: deep-water, upstream engines, future opportunities

Integrated gas growth 2016+

Restructure resources plays + downstream

ROACE (%)

Downstream engine Upstream engine

Integrated gas Deep-water


Bubble size represents 2013 capital employed

CFFO in billion $ 2013 ROACE

2013

2015/16 potential


JOHN ABBOTT DOWNSTREAM DIRECTOR



DOWNSTREAM STRATEGY

Developing and sustaining competitive advantage through…

Advantaged feedstock +

supply

Improving our footprint

Differentiated Products +

Customer Offer

Distinguished Brand

Priority to improve our financial performance


DOWNSTREAM MACRO LANDSCAPE

1 Ethylene + propylene + benzene

Oil Products

Structural refining overcapacity

Liquids rich shales changing the dynamics

Efficiency and mogas displacement in transportation fuels

Challenging competitive landscape

Chemicals

Chemicals demand growth robust

Significant feedstock price movements

North America re-emerges as chemicals exporter

Growth opportunity

Excess industry refining capacity million bpd

Base1 chemicals growth potential Domestic demand in million tonnes per annum

Spare capacity Global average refining margin (RHS)

North America Europe South America Middle East Asia Others

$/bbl


DOWNSTREAM OPERATIONAL EXCELLENCE CONTINUOUS IMPROVEMENT

Port Arthur expansion included from 2013

Focus on HSSE continues

Injuries – TRCF/million working hours

Capital discipline $ billion

Operating performance % unplanned downtime

Brand Global brand preference

million working hours

Refining

Working hours TRCF

Chemicals Shell Other majors

Source: Ipsos – Global Customer Tracker (covering 30+ markets)

Non-growth Oil Products

Growth Chemicals


DOWNSTREAM FINANCIAL RESULTS

CCS earnings excluding identified items

Earnings + cash flow $ billion

Capital employed + ROACE $ billion

Free cash flow $ billion

CFFO excl. WC movements Working capital movements

Capital investment Acquisitions

Free cash flow (RHS)

Improved Chemicals performance

Challenging Oil Products results

Priority to improve ROACE, CFFO & FCF

2012 2013 2011 2010 2009

% $ billion

Potential

Potential

Asset sales

Earnings CFFO

CFFO average 2011-13

Capital Employed ROACE (RHS)

ROACE average 2011-13 (RHS)


DOWNSTREAM COMPETITIVE LANDSCAPE

Earnings excluding identified items; peer group: XOM, LBI, DOW, BP, RDS

Downstream ROACE

Chemicals ROACE

2009 2010 2011 2012 2013

Shell Chemicals Peer group range

Earnings on local GAAP basis adjusted for inventory valuation differences and excluding identified items; peer group: Chevron, Total, BP, XOM, RDS

Peer group range Shell Downstream

Chemicals turn-around

Legacy asset positions

Complex competitive drivers


CHEMICALS TURNAROUND

Restated for IAS19, 2008 ROCE, CCS earnings excluding identified items

Investment in advantaged feedstock

Refocused on strong core + concentrated footprint

Performance units management

Returns recovery + growth opportunities

Shift to advantaged feedstock Improving ROACE $ billion

Capital employed Chemicals ROACE Chemicals (RHS)

Advantaged liquids Advantaged gas

Generic liquids Generic gas

2007 2013

%


~16%

Shell Chemicals:

Base chemicals + derivatives

Advantaged feedstock

Bulk sales to industrial customers

Major improvements delivered


OIL PRODUCTS PERFORMANCE

Restated for IAS19, 2008 ROCE, CCS earnings excluding identified items

2008 – 2013

Reduced footprint + costs

Port Arthur expansion

Added Brazil biofuels + East marketing growth

Returns remain under pressure

Portfolio restructuring ROACE remains low $ billion

Capital employed ROACE (RHS) Refining capacity Marketing

-10%

-20 %

%


Million b/d Million b/d

~6%

-0.4 Mb/d

-45 countries


PORTFOLIO SEGMENTATION + PERFORMANCE

Downstream businesses 2013 CFFO ($ billion)

2013 ROACE (%)

New segmentation into >80 performance units

Action plans to improve returns + CFFO or exit

Focus on cost efficiency

Targeted investment

Bubble size = capital employed

-5% 10%

-20% >40% Chemicals

Merchant refining

Integrated refining

+ marketing value chain

Fuels marketing

Biofuels

Lubricants

ROACE based on CCS earnings excluding identified earnings


SHARPER FOCUS ON UPGRADING OUR PORTFOLIO

Downstream asset sales $ billion

Portfolio change

Resilience

Attr

activ

enes

s

Selective Growth: Chemicals China LNG for transport Premium fuels + lubes Biofuels Refinery crude flexibility

and product slate others

Fix: Motiva Singapore fuels Pernis + Rheinland others

Exit: Italy Norway Australia others

Optimise footprint + potential impairments

Integrated value capture

Selective investment in growth markets

Capital discipline and project delivery

agreements year-to-date


IMPROVING PERFORMANCE OF KEY ASSETS

Bukom – performance turnaround Scotford – building on sustained performance Refinery unplanned downtime in %

High margin refinery

Integrated upstream + downstream

Integration value: $4/bbl upstream + $3/bbl chemicals

New debottlenecking potential

Over-supplied fuels market

Improving efficiency; advantaged liquids feedstock; energy costs

Cogeneration + cracker debottlenecking projects 2015

Unplanned downtime 3-year rolling average


OIL PRODUCTS GROWTH IN KEY MARKETS

Largest IOC retail network in China

> 1000 sites in multiple joint ventures

Largest IOC by lubricants market share

Shell’s 2nd largest lubes market globally

Leading lubes brand among IOCs, with #1 brand share preference for Shell Helix and Rimula

Growth potential

Shell branded retail network ~4800 sites

Brazil’s #1 sugar-ethanol player

Global #1 sugar-ethanol player (sugarcane based)

Growth opportunities Operational excellence Brown field expansions Production of 2nd generation ethanol

China marketing growth Brazil - Raízen JV billion litres million tonnes billion R$ (local curr) #

Number of operating sites Fuels volume

Volume (million litres)

Fuels volume sold Sugarcane crushed NIBIAT


DOWNSTREAM STRATEGY

Developing and sustaining competitive advantage through…

Priority to improve our financial performance

Renewed focus on upgrading our portfolio

Returns + free cash flow improvement

Advantaged feedstock +

supply

Improving our footprint

Differentiated Products +

Customer Offer

Distinguished Brand


MARVIN ODUM UPSTREAM AMERICAS DIRECTOR



UPSTREAM AMERICAS STRATEGY

Major OECD growth potential for Shell

Substantial and diverse resources base

Deep-water Industry leadership

Heavy Oil Mining and in-situ

Resources Plays Portfolio repositioning

Integrated Gas Monetizing gas

Arctic Long-term potential

Profitable + competitive today Potential

Priorities to deliver our deep-water and heavy oil growth projects

Establish resources plays and integrated gas profitability

Drive sharper cost focus and capital efficiency across our operations


UPSTREAM AMERICAS PORTFOLIO SUBSTANTIAL UNDEVELOPED UPSTREAM RESOURCES

Resources

Deep-water Resources plays

Heavy oil

On stream Execute (under construction) Select/Define

11.7 billion boe

Production million boe per day

Deep-water Resources plays Heavy oil

Capital investments $ billion

Deep-water Resources plays Heavy oil

Pre-FID/other

+2% -20%

Resources Plays

Deep-water

Gas monetization options

Heavy Oil

Western Canada dry gas

Appalachia dry gas

Carmon Creek In Situ

Stones, Appomattox, Vito

Libra

LNG Canada

Gas-to-chemicals

Elba LNG

Major undeveloped resources


UPSTREAM AMERICAS PORTFOLIO FINANCIALS DIVERSE BUSINESSES & MATURITY

2013 $ billion Earnings1 CFFO Organic capital

investment Capital

employed ROACE

1 3 6 15 10%

2 3 2 19 9%

(3) (0) 5 24 (10)%

(1) (1) 1 3 n.a.

(0) (0) 0 0 n.a.

RESOURCES PLAYS

DEEP-WATER

HEAVY OIL

INTEGRATED GAS

ARCTIC

1 Earnings excluding identified items; ROACE based on earnings excluding identified items

Growing + competitive

Delivering new growth 2014+

Future Potential

Restructuring resources plays

Growth options


UPSTREAM AMERICAS FINANCIAL DRIVERS

Earnings excluding identified items

Earnings 2011 to 2013 Balance sheet $ billion

On stream Under construction

Resources plays Deep-water

Non productive leases Heavy oil/Arctic

LRS

$3.7 billion clean DD+A 2013

$ billion

GAS

2013 CFFO $5.3 billion

Earnings + balance sheet impacted by growth portfolio

2013 clean DD&A Upstream Americas $6.3 billion, of which $3.7 billion in resources plays

2013 2011

- 0.9

-1.4

0.5

- 0.5

- 0.3

- 0.6

- 0.8

3.4

- 0.9

Long term growth

- 0.3


NORTH AMERICA RESOURCES PLAYS PORTFOLIO & STRATEGY

North Americas capital investment $ billion

Dry gas Acquisitions LRS Divestments

-50%

-20%

Portfolio

Established in gas plays

Liquids rich shales exploration

Restructuring and redefining growth

Portfolio and spending reduction

Exploration & appraisal in LRS sweetspots

Define gas monetization opportunities

Resources + potential

Future potential

On stream

Execute (under construction)

Select/Define

11.5 billion boe

Future potential = discovered + prospective resources

Haynesville

Elba LNG

LNG Canada

Groundbirch Deep Basin/Kaybob

Foothills/Pembina

Pinedale Gas-to-chemicals

Appalachia

Liquids rich shales Announced divestment


Rockies LRS

Permian

Eagle Ford

Mississippi Lime

Dry gas Gas/LRS


LIQUIDS RICH SHALES EXPLORATION AND APPRAISAL

Frontier exploration program since 2010

Move to more focused & segmented de-risking

Positive early results in Duvernay (Kaybob) and Wolfcamp (Permian)

Exit from non-material acreage

LRS production Thousand boe/day

Drilling focus in sweet spots Cumulative # of wells >1000boe/d potential

Rig count Number of rigs

Duvernay Permian Other Liquids Associated gas Permian Canada Announced divestments

Groundbirch Kaybob

Pembina

Rockies LRS

Permian

Eagle Ford

Mississippi Lime

Liquids rich shale Announced divestments


DRY GAS ASSESSING MONETIZATION OPPORTUNITIES

Gas production Rig count

Major resources position

Drill to maximize use of existing infrastructure

Addressing underperforming assets

Acquisition overhang

Scale & cost reduction

Retaining portfolio with cost and integration advantage

thousand boe/day Number of rigs

Gas Associated liquids

Pinedale

Groundbirch

Appalachia

Deep Basin

Haynesville

Foothills

LNG Canada

Groundbirch Deep Basin

Foothills

Pinedale Gas-to-chemicals

Appalachia

Gas Gas monetization options

Haynesville

Elba LNG


Resilience

Attr

activ

enes

s

0%

20%

40%

60%

80%

100%

0 20 40 60 80 100

RESOURCES PLAYS MAJOR REVIEW OF PORTFOLIO UNDERWAY

Staff reduction

Drilling cost learning curve Drilling costs

-30%

2013 2014E

Shell employees

Contractor

Reduction in Shell + contractor staff

Field office closures

Supply chain + drilling performance

Portfolio

Exit: Eagle Ford Mississippi Lime Rockies LRS

Fix or Divest: Appalachia Deep Basin Pinedale Haynesville Foothills

Grow: Permian Kaybob Pembina Argentina – Vaca Muerta Groundbirch

LRS Plays Groundbirch Eagle Ford Duvernay (Kaybob) Haynesville

Number of wells drilled


LNG CANADA PROGRESSING TO FID

2 x ~6 mtpa first phase

Kitimat site agreement

25-year export license secured (24 mtpa)

Environmental assessment process initiated

Joint venture: Shell (40%), Kogas, Mitsubishi, PetroChina

TransCanada Pipelines (TCPL) to build, own & operate

~700km pipeline

Filed environmental assessment application

Public consultation and open houses underway

Access to competitive supply

LNG Canada Coastal GasLink pipeline


HEAVY OIL DELIVERY & GROWTH

Delivery of production + financial step-up

Cost focus + footprint management

AOSP: Quest CCS development

In Situ: Carmon Creek FID 80 kboe/d

Oil Sands unit cost $/bbl

Net Production kboe/d

Cash operating cost excluding energy Energy Oil sands In Situ Aera

Assets

AOSP – JV ~225 kboe/d Shell 60%

In Situ – Shell ~20 kboe/d Shell 100%

Aera – JV ~135 kboe/d Shell 52%

-17% +22%


UPSTREAM AMERICAS INTEGRATION & POTENTIAL

Refinery/ chemical plant

Upstream positions

Midstream positions/capacity

Refinery with LTO capability


LNG Canada Carmon Creek

LRS

AOSP

Scotford

Western Canada gas

Proposed Energy East Pipeline

Sarnia Appalachia

Gas to chemicals

Elba LNG

Ho-Ho

Motiva refineries

Deer Park

Permian

Permian Express

Martinez

Puget Sound

Proposed midstream positions/capacity

End to end value chain linkage

Efficient evacuation route to market

Advantaged refining position

Mobile


2013 downtime

Mars Corridor Auger Brazil

LEADING POSITION IN DEEP-WATER

Deep water unit operating cost (Gulf of Mexico) $/bbl

Capital investment

$ billion

Production

Kboe/d

Gulf of Mexico Brazil Other

Base Exploration*

Track record of delivery + cost performance

2014 project start-ups drive new growth

Divestments Growth

Source: Rystad *2013 includes Libra $1.3 billion

Unit cost range Shell unit cost


DEEP-WATER GULF OF MEXICO PROJECT DELIVERY

Payback achieved February 2014

First producer in the Paleogene (Lower Tertiary)

100 kboe/d (Shell ~34% operator)

First oil more than 6 months ahead of schedule

Shell’s 6th and largest TLP in GOM

100 kboe/d by 2016 (Shell 71.5% operator)

Perdido – 2010 start-up Mars B – February 2014 start-up

0

150 kboed

100

50

’10 ’11 ’12 ’13 ’14


DEEP-WATER GULF OF MEXICO NEW PROJECTS

Execute (under construction) On stream

Select/Define

Auger

Mars

Ursa Nakika

Brutus

Perdido

Vito ~100 kboe/d potential >300 million boe resources Shell 51.33% (operator)

Appomattox ~150 kboe/d hub potential Integrating Vicksburg A discovery Resources increased 100mmboe to >600

million boe Shell ~80% (operator) FEED started late 2013

Stones ~50 kboe/d FPSO >250 million boe resources Shell 100% (operator) FPSO under construction 2016 start-up

Caesar Tonga

Cardamom Deep

Mars B W.Boreas, S. Deimos

100 km Cardamom Deep ~50 kboe/d Shell 100% (operator) Tie back to Auger 2014 start-up

Stones FPSO

Growth outlook1:

178 kboe/d on stream in 2013 + Mars B start-up 2014

100 kboe/d under construction

170 kboe/d new options

FID Discovery

Cardamom

Stones

Appomattox/Vicksburg

Vito

Start-up

1 Shell share


Project flow 2013 2014 2015 2016/2017

Heavy Oil

Deep-water

Resources Plays

Integrated Gas

UPSTREAM AMERICAS OUTLOOK

S Carmon Creek

S Elba LNG

S

S Stones

S Vito

Cardamom

F F

Appomatox

BC-10 ph3

LRS asset sales

S F Start-up FID – final investment decision

F Carmon Creek

LNG Canada

LRS de-risking

S

Mars B

FEED – front end engineering & design

phase 1

F LNG Canada

Cost repositioning

Gas integration decisions

Pathways to growth for each strategic theme

S

BC-10 ph2


UPSTREAM AMERICAS STRATEGY

Major OECD growth potential for Shell

Substantial and diverse resources base

Deep-water Industry leadership

Heavy Oil Mining and in-situ

Resources Plays Portfolio repositioning

Integrated Gas Monetizing gas

Arctic Long-term potential

Profitable + competitive today Potential

Priorities to deliver our deep-water and heavy oil growth projects

Establish resources plays and integrated gas profitability

Drive sharper cost focus and capital efficiency across our operations


BEN VAN BEURDEN CHIEF EXECUTIVE OFFICER



2014 PRIORITIES












QUESTIONS & ANSWERS MANAGEMENT DAY


KEY UPSTREAM PROJECTS UNDER CONSTRUCTION

Deep-water Integrated gas


Upstream engine


PRE-FID UPSTREAM OPTIONS POTENTIAL 2014-2020 START-UPS

Deep-water Integrated gas


Upstream engine


IDENTIFYING NEW CHEMICALS GROWTH POTENTIAL

Qatar chemicals Gas-to-chemicals US Saudi Arabia Iraq others…

2006 Nanhai

2010 USGC go-light strategy

Future options…

Current Potential

2010 Singapore

Portfolio + options

North America

Asia

Europe

Middle East

Al-Karaana petrochemicals complex (2050 ktpa)

2015+ Derivatives expansion in Jurong and USGC

Pennsylvania cracker + PE

Jurong derivatives (380 ktpa)

Shell Base Chemicals 2013 capacity

Strengthening our core

Growing our footprint

Crackers + derivatives

Scotford HCU debottleneck

China refining + chemicals

Sadaf expansion


DELIVER NEW PROJECTS 2014 START-UPS

Mars B, Shell 72%, 100 kboe/d Cardamom, Shell 100%, 50 kboe/d

Gumusut-Kakap, Shell 33%, 135 kboe/d Repsol LNG acquisition, 4.2 mtpa


Production decline halted

focus on up-time

reservoir development

sub-surface dynamics

Innovative EOR schemes

IMPROVE PERFORMANCE IN UPSTREAM ENGINES OPERATIONAL EXCELLENCE: OMAN

PDO Oman kboe/day, Shell share

Qarn-Alam: enhanced oil recovery project: on stream 2011

Actual production assumed production with continued decline


IMPROVE PERFORMANCE IN UPSTREAM ENGINES IMPACT OF MAINTENANCE IN UK NORTH SEA

UK ‘000 boe per day, Shell share

2012-13 impacted by high levels of maintenance

2013 maintenance downtime 50 kboe per day (vs. 35 kboe per day downtime in 2012)

Address late life assets: fix or divest

2013 Clair, Pierce, Schiehallion, Brent, Gannet, Curlew

2012 Nelson, Anasuria, Shearwater, Pierce, Brent/Penguin, Curlew, Clair, Guillemot

2014 start-ups: Pierce, Gannet, Shearwater

2012: 117kboe/d

2013: 91kboe/d


ROBUST LNG MARKET DYNAMICS

Source: HH-Nymex, NBP-Argus, Brent-ICE, Japan Landed-CERA

LNG import countries

Regional gas prices $/mmbtu

LNG supply $/mmbtu

1990 2013 2020

Japan landed LNG price National balancing point (UK)

Henry hub (US) Brent

Importing countries (RHS) Exporting countries (RHS)

Volumes sold FID On stream

Shell

Nigeria LNG

Oman LNG Malaysia Tiga

North West Shelf Sakhalin

Prelude FLNG

Pluto

Malaysia Dua

Gorgon North Rankin 2

Diverse and growing market

Regional price variations

QG4


INTEGRATED GAS PORTFOLIO LEVERAGING SHELL’S SCALE AND MARKET GROWTH

* Includes feed gas from non-integrated ventures

Priorities

Integrate Repsol LNG acquisition

Deliver Prelude + Gorgon

Hard choices on next options

2013: ~0.7* mboe/d; 20 mtpa LNG

Capital investment $ billion

Shell global LNG growth Equity liquefaction capacity in mtpa Year end equity liquefaction capacity in mtpa

Liquefaction Regas

GTL

Hazira

Gorgon Prelude

On stream Under construction

2013 ~2020+ 2007

Under construction Options

On stream

Repsol LNG acquisition

Repsol LNG acquisition Repsol LNG acquisition Organic capital investment

Shell LNG leadership

2014

2013 2017 Repsol acquisition (2014+)

Elba (MMLS)


INTEGRATED GAS DEVELOPMENTS UNDER CONSTRUCTION: AUSTRALIA

3.6 mtpa LNG + 1.7 mtpa NGLs

Development drilling commenced Sep 2013

Hull afloat Nov 2013

Darwin supply base > 50% complete

Shell 67.5% (operator)

~15 mtpa: 3 trains

Expansion potential

Shell 25% (Chevron operator)

Prelude Floating LNG Gorgon


GLOBAL DEEP-WATER LEADING IOC DEEP-WATER PORTFOLIO

Established production leadership

Standardized developments & production technology

Frontier exploration potential

2013: 0.3 mboe/d

Organic capital investment

$ billion

Perdido Spar, Gulf of Mexico

On stream Under development Exploration

Gulf of Mexico Cardamom Stones

Brazil BC-10 ph3

Nigeria Bonga NW Erha North ph2

Malaysia/Brunei Gumusut-Kakap Malikai Sabah Gas

Kebabangan KBB Petai


IDENTIFY/ASSESS

Libra

ENHANCE CAPITAL EFFICIENCY MANAGING PROJECT FLOW

Deep-water

EXECUTE

Bonga NW Cardamom Sabah gas-KBB Gumusut-Kakap Erha North ph2 Stones BC-10 ph3 Malikai

SELECT

BMS-54 Bosi field development Vito Zabazaba

DEFINE

Appomattox Bonga Main ph3 Bonga North Bonga Southwest Geronggong

ON STREAM

Brazil Gulf of Mexico Nigeria deep-water Brunei deep-water Malaysia deep-water

~235 kboe/d at peak 2013: ~300 kboe/d

START UP

FID


IRAQ

Majnoon Basrah Gas company

First major green field development in Iraq in 30 years

Start-up in Q3 2013 - currently producing >200 kboe per day

Cost recovery triggered, following the successful completion of 90 day test run in 2013

BGC: largest flare reduction project in the world delivering gas to domestic market

On stream1 May 2013; 320 mmscf/day

Current processing capacity 500 mmscf/day

2 billion scf/day potential


NIGERIA

Bonga + Erha fields

Nov 2005: Bonga start-up; Nigeria’s first deep-water project

~90 kboe/day (Shell 2013)

2014: Bonga NW start-up

Shell 55%

Jan ‘14: delivered 3000th LNG cargo

4.4 mtpa (Shell 2013)

Atlantic markets with Asian optionality

80-100 kboe/d divestment program underway

Focus on gas

~180 kboe/day (Shell 2013)

Focados Yokri, Southern Swamp, Gbaran-Ubie ph2 and TNP loopline under construction

Deep-water Nigeria LNG Onshore (SPDC JV)

2010-12 divestments

SPDC OMLs


IN-SITU HEAVY OIL GROWTH CARMON CREEK

2013 FID on 80 kboe/d

1.5 billion barrels of resources

Vertical steam drive integrated with cogen

100% produced water re-cycled

100% Shell

Development overview Transportation options

Central Processing Facilities Site Preparation

Carmon Creek

Quebec

To USGC

Hardisty

Proposed and existing pipelines Proposed East Energy pipeline Tankers

Edmonton

200 miles


SHELL ARCTIC & NEAR ARCTIC

CANADA

RUSSIA

KAZAKHSTAN

NORWAY

GREENLAND

UNITED STATES

SALYM

KASHAGAN

SAKHALIN

NORTH POLE

ORMEN LANGE

BAFFIN BAY

NIGLINTGAK

CHUKCHI

BEAUFORT

KANUMAS

NORWAY BARENTS

Alaska, Chukchi

Greenland, Baffin Bay

Norway, Ormen Lange

Russia, Sakhalin

Russia, Salym

Kazakhstan, Kashagan


UPSTREAM AMERICAS HSSE

2013 performance:

Personal injury rate reduced by 30%

Process safety incidents reduced by ~50%

Add photo

Focus on HSSE continues Process safety Number of incidents Injuries – TRCF/million working hours million working hours

Working hours (RHS) TRCF Tier 1 incidents Tier 2 incidents


0

1

2

2009 2010 2011 2012 2013 2014 2015

PROJECTS + TECHNOLOGY: COMPETITIVE PROJECTS

Cost benchmarking from IPA Upstream International & International benchmarking consortium

Standardization lead time: subsea trees Upstream/ Downstream IPA cost benchmark

$ billion cumulative

Value through standardization: subsea components

UA subsea spend w/o standardization UA subsea spend

Realized savings ~$200 million or 20%

1Q 2Q 3Q 4th Quartile

Upstream facilities cost Index Downstream cost effectiveness

Current mandatory benchmarking for major projects

Standardization and replication to hold down cost

Improvement in front end loading

Transfer of knowledge

Competitive projects performance

Peers EFA Standardization effect

months

6-12 months acceleration


0

25

50

75

0 5000 10000 15000

PROJECTS + TECHNOLOGY: WELLS

Rushmore data

Average age of Shell fleet ~10 years

Declining to ~5 years by 2016

High technology fleet (dual BOP’s, Bully rig)

BOP R&D with Transocean

‘000 $/day Ultra deep-water rig rates Example: Malaysia drilling cost

Major IOC competitors Shell contracts

Competitive drilling costs

Well costs in $ million

Depth (ft)

4th quartile

3rd quartile

2nd quartile

Top quartile

Best in class

Competitors 2000-2012 Shell 2010 Shell 2013


CONVENTIONAL EXPLORATION PORTFOLIO + SPEND

Reloading our acreage portfolio

‘000 km2

Exploration spend

$ billion

Substantial dry hole costs in 2013

Exploration spend ~$4 billion 2014

Drilling 16 basins in 2014

2014 key frontier tests

Albania, Benin, Brazil, China offshore, Gabon

Exploration & Appraisal Acreage/deals

Turkey Black Sea Australia Norway Brazil Brunei Nova Scotia

South Africa Albania Benin China

Tanzania

New Zealand Indonesia Malaysia

French Guiana

GOM Greenland

Guyana Italy

Norway Alaska Colombia Australia

Albania, Shpirag -2 discovery


2013 CONVENTIONAL EXPLORATION HIGHLIGHTS

2013 entry into giant pre-salt discovery

2014: spudding 2 wells

Extended well test by end-2016

Shell 20%

Deep-water oil discovery

>100 million boe

Shell 75%

Part of a future Appomattox development > 600 million boe (was 500

million boe)

~30 mln boe discovered

Single well with 6 sidetracks

On-stream in 2013

Shell 50%

Frontier: Brazil, Libra entry

Heartland: GOM, Vicksburg “A”

NFE: Brunei, Iron Duke


EXPLORATION + APPRAISAL: KEY WELLS 2014-2015

Albania: follow-up exploration

US GoM: Mars Basin, Mesozoic, Miocene, Paleogene plays

Brunei Nigeria

Outer Canning + Exmouth

Neuquen LRS

China

Gabon: pre-salt

Ukraine

North America LRS

‘14 ‘15

Turkey Black Sea

Yinggehai

Malaysia

Tanzania

New Zealand

Oman LRS

Russia LRS

Arrow CBM South Africa Orange Basin

Canada: Nova Scotia deepwater

Denmark

Benin: transform margin

Egypt

Indonesia

Norway

Netherlands

Frontier Heartlands

Turkey LRS

Brazil including Libra

2014 drilling in 16 conventional basins + 9 resources plays

2014 conventional spend $4.2* billion (2013 $5.8 billion)

2014 resources plays spend $3.1 billion (2013 $3.5 billion)

Conventional

Resources plays

* Includes Alaska


BALANCING GROWTH & RETURNS MANAGEMENT DAY 2014

13 MARCH 2014 ROYAL DUTCH SHELL PLC

BALANCING GROWTH & RETURNS - Shell Global | Shell Global · Spills - operational Volume in thousand...

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