VP Planning Royal Dutch Shell plc by Hein van den Wildenberg
1. CULTURE EATS STRATEGY
2 December 2010
Maastricht University
Hein van den Wildenberg
VP Planning Royal Dutch Shell plc
1 December 2010
1 December 2010 1
2. AGENDA
Shell, een korte introductie
Voorbeelden van het belang van cultuur/gedrag in Shell
De rol van Finance
Stellingen
1 December 2010 2
3. DISCLAIMER STATEMENT
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 the Shell’s products; (c) currency fluctuations; (d) drilling
and production results; (e) reserve 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 20-F for the year ended December 31,
2009 (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, 2.12.2010. 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.
The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved
reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing
economic and operating conditions. We may have used certain terms in this presentation that SEC's 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.
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4. SHELL IN GETALLEN
FINANCIAL METRICS EMPLOYEES
REVENUE $ 278 BILLION INCOME $ 12.7 BILLION
AVERAGE NUMBERS 2009
Rounded to the nearest thousand
Upstream 23,000
Downstream 62,000
DIVIDENDS DECLARED PER SHARE $ 1.68 EARNINGS PER SHARE $ 2.04 Corporate* 16,000
Total 101,000
Source: 2009 Annual Report and Form 20-F
GLOBAL RANKING BY REVENUE INDUSTRY MARKET CAPITALISATION
Rank 2009 revenues ($ million) 2009 profits ($ million)
Wal-Mart Stores 1 408,214 14,335
Shell 2 285,129 12,518
ExxonMobil 3 284,650 19,280
BP 4 246,138 16,578
Toyota 5 204,106 2,256
Japan Post Holdings 6 202,196 4,849
Sinopec 7 187,518 5,756
State Grid 8 184,496 -343
AXA 9 175,257 5,012
China National Petroleum 10 165,496 10,272
Source: Fortune Global 500, 2010
1 December 2010 4
5. WERELDWIJDE SPREIDING MEDEWERKERS IN 2009
(IN ‘000)
EMPLOYEES BY COUNTRY
(AVERAGE NUMBERS), source: 20-F
2009
Argentina 3
Australia 3
Brazil 2
Canada 6
China/Hong Kong 4
France 1
Germany 5
India 2
Malaysia 7
Morocco 1
The Netherlands 9
Nigeria 2
Norway 1
Philippines 3
Poland 2
Qatar 1
Singapore 3
South Africa 2
Thailand 1
UK 8
USA 22
Draft and of World
Rest subject to review 13 1 December 2010 5
5
7. OUR STRATEGY
“ we want to be the most competitive and innovative energy company in the world”
NEXT GENERATION PROJECT
OPTIONS
• Upstream growth potential to ~2020
2012-13 • 8 bln boe resources; 35 new projects
• Financial growth in focus
PRODUCTION GROWTH
• +11% Upstream growth 2009-12
• Enhanced Downstream portfolio
• Cashflow growth:~50-80% 2009-12
2010-11
PERFORMANCE FOCUS
• Improved operating performance
• $1 billion 2010 cost reduction
• Downstream restructuring
SHARPER DELIVERY – PROFITABLE GROWTH – DIFFERENTIATING TECHNOLOGY
COMMERCIAL
EXTERNAL FOCUS DELIVERY SPEED SIMPLICITY
MINDSET
Draft and subject to review 1 December 2010 7
8. THE ENERGY CHALLENGE
RISING DEMAND SECURITY OF SUPPLY ENVIRONMENT & SOCIETY
Population growth End of ‘easy oil’ Hydrocarbons remain
dominant
Economic growth Resource nationalism
CO2 consequences
More affluent society More unconventionals
9 billion people… 2 billion cars….. 70% of people in cities
Draft and subject to review 1 December 2010 8
9. DEMAND GROWTH AND SUPPLY TRANSITION
RISING GLOBAL ENERGY DEMAND CHANGING ENERGY MIX
100 = global primary energy demand 2000 Million barrels oil equivalent per day
300 400
high
300
low
200
high
low
200
100
100
0 0
2000 2025* 2050* 2000 2025*
OIL NUCLEAR
GAS LARGE SCALE HYDRO
COAL ALTERNATIVE ENERGY
* Shell estimates
Draft and subject to review 1 December 2010 9
10. ALGEMENE BELEIDSUITGANGSPUNTEN VAN SHELL
Gemeenschappelijke kernwaarden van oprechtheid, integriteit en respect voor
mensen
Bijdragen aan duurzame ontwikkeling
Erkennen verantwoordelijkheid jegens aandeelhouders, klanten, medewerkers,
met degenen met wie wij zaken doen en jegens de samenleving
“…reduce the environmental
“Long-term profitability is impact of our operations, products
essential…” and services…”
“…be good neighbours…
“…balancing short and long manage the social impacts of our
term interests…” activities… enhance benefits to
local communities…”
“…integrating economic,
“…regular dialogue and
environmental and social
engagement with our
considerations into business
stakeholders is essential…”
decision-making…”
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11. CODE OF CONDUCT= GEDRAGSCODE
Om te helpen
kernwaarden en
beleidsuitgangs-
punten na te leven
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12. DIVERSITY & INCLUSION
Diversity: all the ways we differ (age, gender, ethnicity,
thought styles, religion, sexual orientation, education, ...)
Inclusion: creating a working culture where differences
are valued
Why?
Attract and retain the best
Increase productivity
Stronger customer/market focus
Various levers to achieve success
Measures of success
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13. SAFETY CULTURE
Goal Zero, no harm to people, no significant incidents
Supported by 3 behaviours: Comply, Intervene, Respect
Safety:
Personal safety 12 Life Saving Rules
Process safety suite of tools
“I believe that an organization with all the right systems and tools in place to
manage and reduce risks to people and processes will fall short if it does not
also have a culture where safety is seen and felt in every aspect of the
organization. The systems, processes and culture all must work together.”
Marvin Odum, president Shell Oil Company, November 9
National Commission on the Deepwater Horizon Oil Spill and Offshore Drilling
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14. SHELL PEOPLE SURVEY
Anonieme enquete, jaarlijks uitgevoerd door derde partij
Hoe staat het met de algehele betrokkenheid van de
medewerkers staat – wat gaat goed, waar is verbetering nodig
Vragen in de trant van: wat vindt een medewerker van de
algehele koers van Shell, de kwaliteit van haar leiding en of
naar Shell’s waarden en Algemene Beleidsuitgangspunten
wordt gehandeld.
Ook vragen over: gerichtheid op klanten en externe
stakeholders, de besluitvorming, vereenvoudiging,
communicatie en overleg.
Uitkomsten zijn beschikbaar tot op verschillende niveaus in
organisatie en worden actief gebruikt bij formuleren
verbeterplannen etc.
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16. ROL VAN FINANCE
De balans vinden ...
tussen controls en vertrouwen
Business Performance management
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17. STELLING 1
• Cultuur/Gedrag krijgt (te) weinig aandacht in
opleidingen als RC/EMFC
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18. STELLING 2
• Een goede strategie, die slecht gedragen wordt door de
organisatie is niet goed...
Maar een slechte strategie, die volledig door de
organisatie wordt omarmd, is niet beter...
1 December 2010 18