Shell CFO Discusses Financial Strategy and Outlook

ROYAL DUTCH SHELL PLC

PREMIUM CONFERENCE
SOCIETE GENERALE

PARIS
30 NOVEMBER 2011

1 Copyright of Royal Dutch Shell plc 30 November 2011


SIMON HENRY
CHIEF FINANCIAL OFFICER


DEFINITIONS AND CAUTIONARY NOTE

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 or SEC proven mining
reserves. Resources are consistent with the Society of Petroleum Engineers 2P and 2C definitions.

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‟‟, “scheduled”, „„estimate‟‟, „„expect‟‟, „„goals‟‟, „„intend‟‟, „„may‟‟, „„objectives‟‟,
„„outlook‟‟, „„plan‟‟, „„probably‟‟, „„project‟‟, „„risks‟‟, „„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 factors that may affect future results are contained in Royal Dutch Shell‟s Annual Presentation / Form 20-F for the year ended December
31, 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, 30 November 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.

We may have used certain terms 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.


ENERGY OUTLOOK

GLOBAL ENERGY MIX

Mln Boe/d

Industry outlook
400
 Hydrocarbons dominate outlook

300
 Growth required in all sectors of energy mix
 Energy policy + sustained investment

200

Shell
100  Crude oil & oil products
 Natural gas & LNG
0  Biofuels, wind, carbon capture + storage
1980 1990 2000 2010 2020 2030 2050
 Petrochemicals
OIL BIOMASS COAL
GAS WIND NUCLEAR
SOLAR
SHELL ACTIVITIES
OTHER RENEWABLES

SHELL ESTIMATES


SHELL

‘GOAL ZERO’ ON SAFETY

Injuries – TRCF per million working hours Million working hours

5 900

4 800

3 700

2 600

1 500

Customer and Profitability & 0 400
'01 '02 '03 '04 '05 '06 '07 '08 '09 '10 H1
partner focus performance WORKING HOURS (RHS) TRCF 11

Sustainability & Value added
growth technology
 Focus on personal and process safety
 Industry leader in Sustainable Development

EMPLOYEES AND CONTRACTORS PER MILLION WORKING HOURS; SHELL OPERATED FACILITIES


STRATEGY & CAPITAL ALLOCATION

STRATEGY CAPITAL INVESTMENT

$ Bln

Upstream
150
 Profitable growth; price upside
 >80% of total capital spending
 Sustained exploration investment
100

Downstream UPSTREAM

 Stable capital employed
 Fewer refineries; upgrade chemicals assets 50

 More concentrated marketing positions
DOWNSTREAM

Financial outlook 0
2007-10 2011-14
 Generating surplus cash flow through cycle
 Investing for growth; competitive payout
 Substantial cash flow growth

Growth Investment – Through Cycle Returns


FINANCIAL PERFORMANCE AND PRIORITIES

EARNINGS PRIORITIES

$ Bln

35

30
PERFORMANCE FOCUS

25

20

15 NEW WAVE OF PRODUCTION
GROWTH
10

5

0
MATURING NEXT GENERATION OF
PROJECT OPTIONS
-5
2007 2008 2009 2010 Q1-Q3 '11

UPSTREAM CORPORATE
DOWNSTREAM DIVESTMENTS/OTHER

CURRENT COST OF SUPPLY EARNINGS


ROYAL DUTCH SHELL
PERFORMANCE FOCUS


PERFORMANCE FOCUS

CONTINUOUS IMPROVEMENT EXAMPLE: CAPITAL EFFICIENCY

Asset sales - $ Bln (cumulative)
40 CORPORATE
UPSTREAM
30 DOWNSTREAM
Cost focus
20

10

0
07 08 09 10 Q1-Q3 2011
Continuous Operational
Simplification
improvement excellence
EXAMPLE: WELLS MANUFACTURING JV WITH CNPC

Capital
efficiency


DOWNSTREAM VALUE CHAINS

Retail

Business-to-
Refining Business

Supply &
Distribution

Chemicals Lubricants

Chemicals

Trading

3 keys to winning
Operational excellence – Concentrating the portfolio – Selective growth


DOWNSTREAM PORTFOLIO + PERFORMANCE

REFINERY PORTFOLIO REDUCTION MARKETING REFOCUS

Refinery capacity Mln bbl/d (100%)
100%
5 4.7 -30%
4
3.3 50%
3
2
1 0%
'09 '10 '11 '12 '09 '10 '11 '12 '09 '10 '11 '12 '09 '10 '11 '12
0 YTD YTD YTD YTD
2002 2006 2009 2011 YTD* 2012 Retail Lubricants Aviation Fuels Bulk Fuels
sites markets markets markets
EUROPE & AFRICA AMERICAS ASIA PACIFIC DIRECT INDIRECT/PART EXIT EXITS

CHEMICALS EARNINGS BRAND STRENGTH

$ Bln % Global Brand Preference
2

20

15
1
10

5

0 0
2005 2006 2007 2008 2009 2010 Q1-Q3
Q2 2010 Q2 2011
2011
SOURCE: GLOBAL BRAND TRACKER


GROWTH DELIVERY
BIOFUELS GROWTH: BRAZIL
GLOBAL BIOFUELS GROWTH POTENTIAL RAìZEN JOINT VENTURE

Kboe/d production
Marketing JV
3,000 SOYBEAN RAPESEED
PALM OIL OTHER  ~4,500 retail sites; ~10% of Shell world-
2,000
CORN SUGARCANE wide portfolio
 ~19% market share in Brazil
1,000
 Rebranding and enhanced customer
offering
0
2005 2010 2015 2020  Synergies + growth potential

RAìZEN: LARGEST IOC BIOFUELS PRODUCER
Biofuels JV
Brazilian sugarcane ethanol  Leading Brazil and Top 5 global ethanol
player
lowest CO2
• > 30 kbd ethanol production capacity
most sustainable of today‟s biofuels • > 80 kbd potential ~ 5 years
most cost competitive  Shell world-wide trading opportunities

2nd generation technology portfolio


ROYAL DUTCH SHELL
GROWTH DELIVERY


GROWTH DELIVERY
CONVERTING RESOURCES TO PRODUCTION
Bln Boe resources
Longer-term upside
35 NA tight gas
Australia
Cardamom Deep
Appomattox Prelude 
Prelude Vito AOSP debottleneck 
25 10
8 Pearls (CMOC) 8 Schiehallion 
Cardamom 
NA tight gas 
Gorgon Mars-B
Clair Ph2 
NA tight gas BC-10 Phase2
15
10 11 11
AOSP-Exp 1 Pearl GTL 
Sakhalin Gjoa QG-4 
BC-10 Perdido Schoonebeek 
5 9 9 Gbaran Ubie 10 Oman EOR
NA tight gas Others

-5
2008 2009 2010
ON-STREAM UNDER CONSTRUCTION STUDY PRODUCTION
 2011 PROGRESS

Maintaining Upstream momentum


GROWTH DELIVERY
2011 START-UPS
INNOVATIVE TECHNOLOGY, FULL VALUE CHAIN, LONG-LIFE RETURNS

Canada - Scotford upgrader

Qatar - Pearl

Qatar – Qatargas 4 LNG shipment

~ $30 bln capital investment
>400,000 boe/d* for Shell
Underpins target for 3.1 - 3.5 mln boe/d 2009-12
* PEAK PRODUCTION; SHELL SHARE: $80 OIL PRICE SCENARIO


GROWTH DELIVERY
LAUNCHING NEW UPSTREAM PROJECTS
2010 + 2011 YEAR-TO-DATE INVESTMENT DECISIONS
Cardamom – USA Sabah Gas Kebabangan (KBB) - Malaysia
50 kboe/d; 100% Shell 130 kboe/d; 30% Shell; PSC

Clair Ph2
AOSP Debottlenecking Schiehallion
1st FID
NA tight gas (various)

Cardamom Mars-B

Mars-B – USA Prelude FLNG – Australia
100 kboe/d; 72% Shell Sabah Gas KBB 110 kboe/d; 100% Shell

Prelude FLNG
BC-10 Phase 2 Wheatstone

2010-11 FIDs: >400,000 boe/d* potential
* PEAK PRODUCTION; SHELL SHARE
ENTITLEMENT AT $80/BBL; 2014 OUTLOOK ASSUMES LICENCE EXTENSIONS + 2010 ANNOUNCED ASSET SALES

GROWTH DELIVERY
DEEPWATER UNDER CONSTRUCTION
MARS-B (GULF OF MEXICO) BC-10 PHASE 2 (CAMPOS, BRAZIL) CARDAMOM (GULF OF MEXICO)
Development concept Phase 1 FPSO Surface System and Subsea View

 TLP capacity ~100 kboe/d  Peak production ~30 kboe/d  Peak production ~50 kboe/d
 West Boreas + South Deimos  Argonauta O-North field  Tie back to Auger platform
 Water depth 950 meters  Water depth 1,600 meters  Water depth 830 meters
 Shell 72% (operator)  Shell 50% (operator)  Shell 100% (operator)

Part of >250 kboe/d deepwater production under construction


GROWTH DELIVERY
AUSTRALIA LNG UNDER CONSTRUCTION
PRELUDE FLOATING LNG GORGON LNG

 First FID ever on Floating LNG  Greenfield LNG on Barrow Island
 110 kboe/d peak production  3 x 5 MTPA LNG trains and domestic gas plant
 3.6 mtpa LNG capacity + condensate/LPG  Carbon capture and storage 4 mtpa
 2007 discovery; 2011 FID  Shell 25%
 Shell 100% (operator)

Part of 9 mtpa under construction


ROYAL DUTCH SHELL
MATURING NEXT GENERATION
PROJECT OPTIONS


MATURING NEXT GENERATION OF PROJECT OPTIONS
ADDING NEW RESOURCES
EXPLORATION & BUSINESS DEVELOPMENT ADDING NEW RESOURCES AT LOW COST

Bln boe
2008

Canada - Duvernay Kazahkstan - Auezov
2009 Australia – Iago 2 Nigeria - Offshore 6

GoM – Cardamom Australia – Libra 1 <$2/boe entry cost

GoM - Vito GoM – West Boreas Brunei – ML-J206T1
Norway – Fram US - Haynesville 4

Canada – Groundbirch

Australia - Concerto ACQUISITION
2
Australia - Arrow
DISCOVERY

EXPLORATION
US - East Resources PROSPECT
0
GoM – South Deimos
US - Eagle Ford Brazil – Massa
GoM – Appomattox Australia - NWS F. Guyana - Zaedyus -2
Brazil – Gato do Matto China – Tight gas Brunei '08 '09 '10

2010 Brunei - Geronggong USA - GoM Alaska
2011/12 Brazil - DW EXPLORATION ACQUISITION/NEGOTIATED ENTRY

DISPOSALS PRODUCTION


DRILLING TECHNOLOGY UNLOCKS NEW GROWTH

NORTH AMERICA CHINA + AUSTRALIA JVs WITH PETROCHINA

Groundbirch
Changbei tight gas
Deep Basin
Foothills North
Shilou CBM

Pinedale

Marcellus Daning CBM

Jinqiu tight gas
Eagle Ford Haynesville JV

Fushun tight gas

ACREAGE

TIGHT GAS

COAL BED METHANE

Arrow Energy
LNG

China: Changbei drilling rig


MATURING NEXT GENERATION OF PROJECT OPTIONS
MATURING NEW PROJECTS
INVESTMENT OPTIONS

Appomattox - USA
Arrow - Australia
Long-term growth and investment
 Options to flex annual spending with macro
 Capex and growth outcomes

Tight Gas – N. America Qatar Chemicals
Investment decisions driven by
 Portfolio fit
 Affordability
 Profitability
Vito - USA Gbaran Ubie Ph2 - Nigeria

Portfolio can support profitable growth to ~2020



FINANCIAL FRAMEWORK


INVESTMENT PROGRAMME

UPSTREAM DOWNSTREAM
% Capital investment % Capital investment

100% 100% 100%
EXPLORATION

80% HEAVY OIL & EOR
75% 75%
TIGHT GAS

SOUR
60%
DEEPWATER
50% 50%
40%
INTEGRATED GAS

25% 25%
20%
TRADITIONAL

0% 0% 0%
2007-10 2011-14 2007-10 2011-14 2007-10 2011-14
OTHERS AMERICAS
CHEMICALS MARKETING REFINING
EUROPE ASIA PACIFIC

Sustained growth investment
Capital discipline
2012-14 CAPITAL INVESTMENT EXCLUDES IRAQ FULL FIELD DEVELOPMENTS


CONVERTING INVESTMENT TO CASHFLOW

INVESTING FOR NEW GROWTH DELIVERING CASHFLOW GROWTH

$ Bln
50 $/bbl BRENT

$105/bbl
60 $80/bbl
40
$60/bbl
50

30
40
$62/bbl
30
20

20
10
10

0 0
2007 2008 2009 2010 2011E 2012E 2009 Q1-Q3 2011 2012
(12 months rolling) target

CAPITAL UNDER CONSTRUCTION EXPLORATION & EVALUATION CASH FLOW FROM OPERATIONS EXCL. NET CAPITAL
NET MOVEMENTS IN WORKING CAPITAL INVESTMENT
(2009-12 average)

Rebalancing financial framework into surplus cashflow
Maintaining growth investment and competitive payout
CASH FLOW TARGETS ASSUME IMPROVED DOWNSTREAM AND NATURAL GAS ENVIRONMENT 2009-
2012

OUTLOOK

PRIORITIES 2011-12 OUTLOOK

 Continuous improvement embedded in Shell
PERFORMANCE FOCUS
 Asset sales; capital efficiency

 2011 start-ups: >400kboe/d*; $30bn
NEW WAVE OF PRODUCTION investment
GROWTH  Selective Downstream growth
 Cashflow and production targets

MATURING NEXT GENERATION OF  >400kboe/d* new projects launched 2010-11
PROJECT OPTIONS  Upstream growth potential to ~2020

Competitive performance – Profitable growth – Sharper delivery
* PEAK PRODUCTION; SHELL SHARE: $80 OIL PRICE SCENARIO


ROYAL DUTCH SHELL
PREMIUM CONFERENCE
SOCIETE GENERALE
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Shell CFO Discusses Financial Strategy and Outlook

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