Media webcast presentation Royal Dutch Shell second quarter and half year results 2011

1 Copyright of Royal Dutch Shell plc 28/7/2011

ROYAL DUTCH SHELL PLC SECOND QUARTER 2011 RESULTS

THE HAGUE JULY 28, 2011



PETER VOSER CHIEF EXECUTIVE OFFICER


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 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 24% 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, 2010 (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, 28 July 2011. 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 these forms from the SEC by calling 1-800-SEC-0330.

http://www.shell.com/investor

http://www.sec.gov/


PERFORMANCE

STRATEGY PRIORITIES

Competitive performance – Profitable growth – Sharper delivery

• Q2 2011 CCS earnings $6.6 billion • Growth performance • Asset sales progress

• Started up three major projects: Qatargas 4, Pearl GTL Train1, AOSP-1

• Innovation, full value chain, long-life returns

• New upstream investment for medium term growth • Raízen joint venture

Q2 & H1 SUMMARY

EARNINGS CCS BASIS EXCLUDING IDENTIFIED ITEMS


PERFORMANCE FOCUS CONTINUOUS IMPROVEMENT

50/50 JV with CNPC • Tight gas development requires „000‟s of wells • Sourcing rigs, services and drilling equipment from

China • Integrated plan to drill and complete repeatable,

low cost wells

EXAMPLE: TIGHT GAS WELLS MANUFACTURING JV

5

Continuous improvement

Cost focus

Operational excellence

Capital efficiency

Simplification


DIVESTMENT PROCEEDS ASSET SALES PROGRESS 2011 YTD

PERFORMANCE FOCUS CAPITAL EFFICIENCY

$ BLN - CUMULATIVE

DOWNSTREAM

UPSTREAM

CORPORATE

Allocating capital to high impact growth

Exit from late-life + non-core positions

Divestment /exit announced

Downstream

Stanlow

14 countries Africa

Chile

GOM Assets

Cano Sur

Wildcat Hills /Woodenhouse

Clyde

Pakistan South Texas

Upstream

U.S. Car Care

Nigeria

Deal Complete

LPG business worldwide

Harburg refinery

Altamira

BM-S-8

Dominican Republic


DELIVERING NEW GROWTH PROJECT START-UPS 2011 NEW START-UPS IN 2011

* PEAK PRODUCTION; SHELL SHARE: $80 OIL PRICE SCENARIO

• Successful ramp-up of 7.8 mtpa project • > 30 cargoes shipped to 11 countries • Part of Shell‟s 20.5 mtpa world-wide LNG portfolio

• Mine expansion on-stream Q3 2010; Upgrader Q2 2011 • Full ramp-up expected H2 2011 • Next steps: debottlenecking of 255,000 b/d project; Quest CCS

• Train 1 ramping up; 6 of 12 GTL reactors on stream • First shipments of GTL products June 2011 • Train 2 start-up by end 2011

7

Qatargas 4

Canada oil sands: AOSP-1 Upgrader

Qatar: Pearl GTL

>400,000 boe/d* for Shell ~ $30 bln capital investment

Innovative technology, full value chain, long-life returns


NA Tight Gas • Continued growth programmes

AOSP DEBOTTLENECKING: 1st FID • 10 kboe/d; Shell 60%; Shell operated

SABAH GAS KBB FID • 130 kboe/d; Shell 30% • Part of Kebabangan Cluster PSC

MATURING NEW OPTIONS H1 2011 DELIVERY

PRELUDE FLNG FID • 110 kboe/d; Shell 100%; Shell operated • 3.6 mtpa LNG, 1.3 mtpa condensate, 0.4 mtpa LPG

CARDAMOM FID • 50 kboe/d; Shell 100%; Shell operated • Production through Auger platform

UPSTREAM

Cardamom/Auger platform Gulf of Mexico

DOWNSTREAM

Raízen, Brazil

Prelude, Australia RAIZEN • 50/50 Shell/Cosan JV • Biofuels in Brazil; ~4500 retail stations • Shell 2nd generation biofuels technology

2010 – H1 2011 investment decisions > 400,000 boe/d* potential

* PEAK PRODUCTION; SHELL SHARE: $80 OIL PIRCE SCENARIO

UK RETAIL ACQUISITION • 254 sites; improved network

SCHIEHALLION REDEVELOPMENT FID • 145 kboe/d; Shell 36%


MATURING NEW PROJECTS BRAZIL MARKETING AND BIOFUELS

Raízen – Sugarcane harvesting

Marketing JV

• ~4,500 retail sites; ~10% of Shell world-wide portfolio

• Rebranding and enhanced customer offering

• Synergies + growth potential

Biofuels JV

• Leading Brazil and Top 5 global ethanol player

• > 30 kbd ethanol production capacity

• > 80 kbd potential ~ 5 years

• Shell world-wide trading opportunities

• Next generation technologies

Retail Brazil

50-50 SHELL-COSAN



SIMON HENRY CHIEF FINANCIAL OFFICER


$/BARREL $/MSCF

SHELL OIL & GAS REALISATIONS

INDUSTRY REFINING MARGINS

PRICES AND MARGINS

$/BARREL

INDUSTRY CHEMICALS MARGINS

• Q2 2011 CHEMICAL MARGINS: BASED ON AVAILABLE PRICES/MARGINS AT THE END OF THE QUARTER

$/TONNE

11

US WEST COAST

US GULF COAST COKING ROTTERDAM COMPLEX

SINGAPORE

US ETHANE

WESTERN EUROPE NAPHTHA

NE/SE ASIA NAPHTHA

GAS (RHS)

OIL

* Q211 SINGAPORE MARGIN IS ZERO

12 Copyright of Royal Dutch Shell plc 28/7/2011 12

Q2 2011 FINANCIAL HIGHLIGHTS CCS EARNINGS ($ BILLION) Q2 2010 TO Q2 2011

EARNINGS CCS BASIS, EARNINGS AND EPS EXCLUDING IDENTIFIED ITEMS

Q2 11 Q210

UPSTREAM 5.4 3.3

DOWNSTREAM (CCS) 1.1 1.2

BUSINESS SEGMENTS TOTAL 6.5 4.4

CORPORATE & MINORITIES 0.1 (0.2)

CCS NET EARNINGS 6.6 4.2

CCS EARNINGS, $ PER SHARE 1.05 0.69

CASH FROM OPERATIONS 10.0 8.1

DIVIDENDS 2.6 2.4

DIVIDEND, $ PER SHARE 0.42 0.42

$ BILLION


UPSTREAM PERFORMANCE

EARNINGS OIL & GAS PRODUCTION

$ BILLION MILLION BOE/D

OTHER UPSTREAM INTEGRATED GAS

EXCLUDING IDENTIFIED ITEMS

CONTROLLABLE


DOWNSTREAM PERFORMANCE

CCS EARNINGS AVAILABILITY AND SALES VOLUMES

EXCLUDING IDENTIFIED ITEMS

$ BILLION % AVAILABILITY VOLUME

OIL PRODUCTS CHEMICALS

OIL PRODUCT SALES (MLN BBLS/D) CHEMICALS AVAILABILITY

REFINERY AVAILABILITY CHEMICALS SALES (MLN TONNES)


$ Bln 2009

2010 H1 2011 2011 Target

Organic investment 31 24 10 ~28

Acquisitions 1 7 2 ~2.5

Disposals (3) (7) (4) ~(5)

Net Capital Investment

29 24 8 ~25-27

Gearing %

BALANCE SHEET CAPITAL INVESTMENT

INVESTMENT AND BALANCE SHEET

Gearing range

Sustained growth investment $25 - $27 bln net capex 2011 – 2014 Prudent balance sheet management



PETER VOSER CHIEF EXECUTIVE OFFICER


SUMMARY

• Q2 2011 CCS earnings $6.6 bln (EPS +52% Q2-Q2) • Oil and gas volumes 3.0 mln boe/d; + 2% Q2-Q2 excluding disposals • $4.4 billion asset sales year-to-date

• Start-ups: Qatargas 4, Pearl GTL Train 1, AOSP-1 • > 400 kboe/d*; $30 bln investment • Innovation, full value chain, long-life returns

• > 400 kboe/d* new projects launched 2010-H1 2011 • Raízen joint venture

EARNINGS CCS BASIS EXCLUDING IDENTIFIED ITEMS * PEAK PRODUCTION; SHELL SHARE: $80 OIL PRICE SCENARIO



Q&A



THE HAGUE JULY 28th, 2011

Investor Relations

Media webcast presentation Royal Dutch Shell second quarter and half year results 2011