fourth quarter and full year results 2010 - february 3, 2011

ROYAL DUTCH SHELL PLCROYAL DUTCH SHELL PLCFOURTH QUARTER AND FULL YEAR 2010 RESULTS

THE HAGUEFEBRUARY 3rd, 2011

1 Copyright of Royal Dutch Shell plc 03/02/2011


PETER VOSERCHIEF EXECUTIVE OFFICER


DEFINITIONS AND CAUTIONARY NOTE

Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves for all 2009 data, and includes both SEC proved oil and gas reserves and SEC proven mining reserves for 2007 and 2008 data. 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.Organic: Our use of the term Organic includes SEC proved oil and gas reserves and SEC proven mining reserves (for 2007 and 2008) excluding changes resulting from acquisitions, divestments and year-end pricing impact.

To facilitate a better understanding of underlying business performance, the financial results are also presented on an estimated current cost of supplies (CCS) basis as applied for the Oil Products and Chemicals segment earnings. Earnings on an estimated current cost of supplies basis provides useful information concerning the effect of changes in the cost of supplies on Royal Dutch Shell’s results of operations and is a measure to manage the performance of the Oil Products and Chemicals segments but is not a measure of financial performance under IFRS.

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

ll fl h h h h ll h f fl b l f d d d h h h ll h lcontrolling 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. F d l ki i l d h hi i h i l f R l D h Sh ll k i k d i ’ iForward-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 potential litigation and regulatory measures as a result of climate changes; (k) economic and financial market conditions in various countries

d i (l) liti l i k i l di th i k f i ti d ti ti f th t f t t ith t l titi d l d t i th l f j t d d land 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, 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, 3 February, 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.

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


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 use 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.

PERFORMANCE

STRATEGY PRIORITIES 2010 RESULTS

20CCS EARNINGS $ BILLION

PERFORMANCE FOCUS

15

NEW WAVE OF PRODUCTION GROWTH

10

MATURING NEXT GENERATION OF

5

EARNINGS EXCLUDING IDENTIFIED ITEMS

MATURING NEXT GENERATION OF PROJECT OPTIONS 0


Competitive performance – Profitable growth – Sharper delivery

PERFORMANCE FOCUS: COSTS

PERFORMANCE FOCUS


MATURING NEXT GENERATION OF PROJECT OPTIONS

UNDERLYING COSTS

• 2010 delivery• Corporate reorganization

U d l i d i f $2 0 bl45

$ BILLIONFXPENSIONSPROVISIONS • Underlying costs reduction of $2.0 bln

• -$4 bln (10%) since 2008

35

40

45 PROVISIONS

COST SAVINGS

OFFSHORING TO LOW COST SHARED SERVICE CENTERS

• Continuous improvement• Offshoring• Global contracting & procurement

EXAMPLE: STANDARDIZATION

302009 2010

6

8

10

OFFSHORING TO LOW COST SHARED SERVICE CENTERS

‘000s STAFF• Simplification & standardization

0

2

4

6


2006 2007 2008 2009 2010

CONTINUOUS IMPROVEMENT:CAPITAL EFFICIENCY

PERFORMANCE FOCUS



CUMULATIVE

~$30 BILLION DIVESTMENTS – 5 YEARS

$ BILLION

ASSET SALES PROGRESS 2010 & 2011 YTD

30

US retail

Harburg

Finland & Sweden

Statfjord

Heide RefineryDOWNSTREAM

UPSTREAM

CORPORATE

20

US retail

Nigeria

SyriaGreece

El Salvador

South Texas

Panama & Costa Rica

GOM assets

10

N g

New Zealand

21 countriesAfrica

Chile10 % Woodside

0

06 07 08 09 10

Divestment Deal Complete


DELIVERING NEW GROWTHPERFORMANCE FOCUS



6 NEW START-UPS IN 2010 ON TRACK FOR STRATEGIC TARGETS

On track for strategic targets• Production growth

11% il & d i 2009 12• +11% oil & gas production 2009-12• 3.5 mln boe/d 2012; ~3.7 mln boe/d 2014

• Cashflow growth• + 50-80% 2009 – 12*Tight gas, North America Perdido, USA

Example: Gbaran Ubie (100%) Nigeria

START-UP PERFORMANCE

100ACTUALPLAN

kboe/dSingapore Chemicals AOSP Jackpine mine, Canada

Example: Gbaran Ubie (100%), Nigeria

0

50

MAY JUN JUL AUG SEP OCT NOV DEC

GJOA PLACEHOLDER


MAY JUN JUL AUG SEP OCT NOV DEC

*$60-$80 OIL PRICE SCENARIO, 2012 ASSUMES NORMALIZED DOWNSTREAM AND NATURAL GAS ENVIRONMENT

2010Gbaran Ubie, Nigeria Gjoa, Norway

QATAR: PROJECTS ON TRACKMAJOR START-UPS 2011

PERFORMANCE FOCUS



PEARL GTL: MAJOR CONSTRUCTION COMPLETE

•Commissioning underway; ~12 months start-up•Sequential start-up of two trains•2012 f ll GTL it hi d

Air separation unit

•2012 full GTL capacity achieved•1.6 bcf/d wet gas

•120 kboe/d NGL/ethane•140 kboe/d GTL products

Sh ll 100% i hi i h Q P l

Sales products

•Shell 100% in partnership with Qatar Petroleum

QATARGAS 4: STARTING UPLNG train

•First gas into plant – Jan 2011•LNG ramp-up H1 2011•7-8 mtpa + 70 kboe/d condensate•Shell 30%

LNG train

Shell 30%


First steam from boilers

EXPLORATION TO PRODUCTION2010 PERFORMANCE

PERFORMANCE FOCUS



DISCOVERY APPRAISAL FID

2010 FIDs2010 FIDs• MARS B, Gulf of Mexico

•~100,000 boe/d TLP capacity (Shell 72%)•BC-10 Phase 2, Brazil

•~30,000 boe/d (Shell 50%)

GULF OF MEXICO• 3 discoveries & 1 appraisal success•~450 mln boe resources (Shell)• Appomattox (Shell 80%), Cardamom Deep (Shell 100%), South Deimos (Shell 72%)• Vito appraisal (Shell 55%)

BRAZIL• BC-10 Massa (Shell 50%)

• Oil discovery, Campos Basin• Potential for BC-10 Phase 3

• Gato do Mato, BMS-54 (Shell 80%)

AUSTRALIA• 2 offshore gas discoveries• Acme (Shell 33%), Brederode (Shell 50%)

l l ( h ll )

, ( )• Oil discovery, Santos Basin• New wells planned to assess commerciality


• Clio-3 appraisal (Shell 33%)Mars-B TLP MARS-B TLPBC-10 FPSO

MATURING NEW PROJECT OPTIONSBUSINESS DEVELOPMENT: 2010 PERFORMANCE

PERFORMANCE FOCUS



CHINA TIGHT GAS• JinQiu PSC: 4,000 km2 tight gas• Fushun JAA: 4,000 km2 shale gas

2010 PROGRESS

Fushun JAA: 4,000 km shale gas• North Shiloh CBM, Ordos basin• Drilling in all 3 licenses

Sugar cane harvesting, Brazil

SHELL/COSAN JV• 50/50, ~4500 Retail Stations

IRAQ MAJNOON OIL FIELD• DPSC signed Shell 45%

Drill pad in JinQiu, China

ARROW ENERGY• PetroChina and Shell• 7-8 mtpa CBM-LNG potential

EAST RESOURCES• Marcellus shale• 70 wells drilled since acquisition

• Biofuels in Brazil• Shell 2nd generation biofuels tech•JV start-up planned April 1st

EAGLE FORD• Condensate rich shale• 6 wells drilled since acquisition

• DPSC signed, Shell 45%• Targeting 175 kboe/d ~ 2012• Current production: 65 kboe/d

GREENLAND OFFSHORE• Block “Anu”, Shell 41%• Block “Napu” Shell 46%


• 6 wells drilled since acquisition

NEW EXPLORATION/RESOURCES ENTRY

Block Napu , Shell 46%• 20,000 km2, Shell operated

OPERATIONAL EXCELLENCE

100% 100%

LNG RELIABILITYOIL & GAS PRODUCTION RELIABILITY

70%

80%

90%

70%

80%

90%

70%

2006 2007 2008 2009 2010

DOWNSTREAM AVAILABILITY SAFETY PERFORMANCE

70%

2006 2007 2008 2009 2010

REFINING - % OF EQUIVALENT DISTILLATION CAPACITY INJURIES - TRCF PER MILLION WORKING HOURS

94%

96%

3

4

CHEMICALS

REFINING % OF EQUIVALENT DISTILLATION CAPACITY INJURIES TRCF PER MILLION WORKING HOURSCHEMICALS - % OF MAXIMUM CAPACITY

90%

92%

1

2

REFINING


2006 2007 2008 2009 2010 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10

EMPLOYEES AND CONTRACTORS PER MILLION WORKING HOURS; SHELL OPERATED FACILITIES


SIMON HENRYCHIEF FINANCIAL OFFICER


PRICES AND MARGINS

$/BARREL $/MSCF

SHELL OIL & GAS REALIZATIONS INDUSTRY REFINING MARGINS

7

$/BARREL

INDUSTRY CHEMICALS MARGINS

$/TONNE

12 600

670

80

8

10

400

500

560

70

4

6

200

300

4

5

50

60

2

0

2

0

100

200

450 -2 0

US WEST COAST ROTTERDAMUS ETHANEWESTERN EUROPE NAPHTHAGAS (RHS)OIL


•Q4 2010 CHEMICAL MARGINS: BASED ON AVAILABLE PRICES/MARGINS AT THE END OF THE QUARTER

13

US GULF COAST SINGAPOREWESTERN EUROPE NAPHTHA

NE/SE ASIA NAPHTHA

G S ( S)O

Q4 2010 FINANCIAL HIGHLIGHTS

5

CCS EARNINGS ($ BILLION) CCS EARNINGS Q4 2009 TO Q4 2010

Q4 10 Q4 09

$ BILLION

4

UPSTREAM 3.4 2.8

DOWNSTREAM (CCS) 0.5 (0.4)

BUSINESS SEGMENTS TOTAL 3.9 2.4

CORPORATE & MINORITIES 0.2 0.4

2

3

CORPORATE & MINORITIES 0.2 0.4

CCS NET EARNINGS 4.1 2.8

CCS EARNINGS, $ PER SHARE 0.67 0.45

1

2CASH FROM OPERATIONS 5.5 5.7

DIVIDENDS 2.6 2.6

DIVIDEND, $ PER SHARE 0.42 0.42

0


EARNINGS CCS BASIS, EARNINGS AND EPS EXCLUDING IDENTIFIED ITEMS

UPSTREAM PERFORMANCE

EARNINGS OIL & GAS PRODUCTION

$ BILLION MILLION BOE/D

4

5 3.4

33.2

CONTROLLABLE

1

23.0

0

Q409 Q110 Q210 Q310 Q410

2.8

OTHER UPSTREAM INTEGRATED GAS


EXCLUDING IDENTIFIED ITEMS

OTHER UPSTREAM INTEGRATED GAS

DOWNSTREAM PERFORMANCE

1 57100

CCS EARNINGS AVAILABILITY AND SALES VOLUMES

$ BILLION % AVAILABILITY VOLUME

1

1.5

695

0

0.5590

1

-0.5

3

4

80

85

-1

Q409 Q110 Q210 Q310 Q410

380

Q409 Q110 Q210 Q310 Q410

OIL PRODUCTS OIL PRODUCT SALES (MLN BBLS/D)REFINERY AVAILABILITY


EXCLUDING IDENTIFIED ITEMS

CHEMICALS CHEMICALS AVAILABILITY CHEMICALS SALES (MLN TONNES)

CASH PERFORMANCE 12 MONTHS

5035

BUSINESSES GROUP

$ BILLION $ BILLION

UPSTREAM DOWNSTREAM SOURCES USES

40

25

30 SOURCES

USES

20

30

15

20

SOURCES

105

10USES

00

CASH FLOW FROM OPERATIONS EXCL. NET MOVEMENTS IN WORKING CAPITAL CAPEX (EXCL. ACQUISITIONS) + EQUITY ACC. INVESTMENTS

ACQUISITIONS


PAY-OUTASSET SALES

INVESTMENT AND BALANCE SHEET

30%

GEARING %

BALANCE SHEET

Gearing range

CAPITAL EMPLOYED $ BILLION RETURN %

40%200

0%

10%

20%

Gea g a ge

20%

50

100

150

0%

Q405 Q406 Q407 Q408 Q409 Q410

CAPITAL INVESTMENTCAPITAL INVESTMENT $ BILLION

OTHERCAPITAL IN SERVICE

ROACE RETURN ON CAPITAL IN SERVICE

0%0

2005 2006 2007 2008 2009 2010

$ Bln2009 2010

TARGET2010 2011E

Organic investment 31 ~28 24 28

Acquisitions 1 ~7 7 1.61

MIDDLE EASTAFRICA, CIS

ASIA-PACIFIC UPSTREAM20

30

q

Disposals (3) (>2) (7) Up to 5

Net Capital Investment 28 ~33 24 25-27

AMERICAS

EUROPE

DOWNSTREAM

U S M

0

10


1 COSAN (BRAZIL DOWNSTREAM & BIOFUELS JV)

2010 2011E


PETER VOSERCHIEF EXECUTIVE OFFICER


SUMMARY

STRATEGY PRIORITIES 2010 DELIVERY

•2010 CCS earnings $18 bln (EPS +56%)

PERFORMANCE FOCUS

g $ ( )•Oil & gas volumes 3.3 mln boe/d (+ 5%)•$2 bln underlying cost savings•$7 bln asset sales

•6 new start-ups 2010•Qatargas 4 starting up; Pearl GTL on track•Launched 2 new deep water projects


•$7 bln acquisitions•New resource plays: Iraq oil, unconventional gas

p p j

MATURING NEXT GENERATION OF p y q , g•Exploration success; 8 new discoveries•Brazil retail & biofuels joint venture



Competitive performance – Profitable growth – Sharper deliveryEARNINGS CCS BASIS, EARNINGS AND EPS EXCLUDING IDENTIFIED ITEMS


Q&A



THE HAGUEFEBRUARY 3rd, 2011


fourth quarter and full year results 2010 - february 3, 2011

Investor Relations

presentation shell

term shell

shell subsidiaries

shell group

forwardlooking statements

shell h significant

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gas reserves