Capital markets day 2016 presentations

Duration: 3:37

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Capital markets day 2016

Message from ben van beurden, ceo royal dutch shell

Ben van beurden to camera

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Ben van beurden

Ceo royal dutch shell

“hello, i am ben van beurden, the chief executive officer of royal dutch shell.

We are holding a capital markets day in london today and let me give you a summary of that.

It’s an important moment for us at shell. We are setting out a strategy for the next several years and this is all about reshaping shell following on from the bg acquisition, which we closed earlier this year.

There are important changes in the macro landscape that we are operating in.”

Ben van beurden voice over

“and how we see this playing out drives the strategic choices that we are making.

We expect to see robust demand for oil and gas for decades to come, in a global energy system that is in a long-term transition to lower carbon intensity.”

Vision – live action

Night time-lapse of westminster with big ben in background

Night time-lapse of large london traffic intersection

Night time-lapse of the london eye rotating

Night time-lapse of lights coming on in skyscrapers as dawn rises

Time-lapse of back of heads of commuters walking in street

Overhead shot of crowd assembled in street

Wind turbines in silhouette against sunrise

Interior of mirrored solar structure

Solar panels on roof against backdrop of city skyline

Ben van beurden to camera

“as well as low oil prices today, we are seeing higher levels of price volatility, due to geopolitical change…”

Ben van beurden voice over

“…the speed of information flows, and the pace of innovation in our sector.”

Vision – live action

Wide of servers in server room

Close up of server

Wide of server corridor in server room

Woman wearing 3d glasses in darkened room reaches out her arm to demonstrate

Wide rear view of woman demonstrating something to colleague on large coloured thermal image screen

Ben van beurden to camera

“now, i want to create a world class investment case…”

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[world class investment case]

“…for shell and our shareholders.

This means a focus on growing our free cash flow per share, improving our returns, and running the company finances in a conservative way.

Additionally, we want shell to be relevant…”

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[relevant]

“…in our industry, growing our value share.

We must continue to reduce our carbon intensity…”

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[reduce our carbon intensity]

“…and create shared value…”

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[create shared value]

“…for our customers, communities and society overall.

These are big ambitions, and there is a lot of work to do here.

By capping our capital spending to $25-$30 billion in the period to 2020…”

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[capital spending $25-$30 billion in to 2020]

“…investing in compelling and fundamentally advantaged projects, driving down costs and selling non-core positions with up to 10% of our production and 5 to 10 country positions earmarked for sale, we can reshape shell into a more focussed and a more resilient company…”

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[more focussed & more resilient]

“…with better returns and…”

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[better returns]

“…higher free cash flow per share.”

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[higher free cashflow per share]

Ben van beurden voice over

“we expect cash engines, such as conventional oil & gas, and integrated gas, to have strong free cash flow and returns, underpinning the dividends.”

Vision – stills

Aerial view of ocean rig

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[cash engines]

Screen splits into four: large screen left; three small screens right

Left screen remains ocean rig

Top right screen – background refinery, foreground piping

Middle right screen – tanker docked at tanker pier

Bottom right screen – refinery, alternate angle

Right screens wipe off

Ben van beurden voice over

“growth in chemicals, where today we have taken final investment decision on a greenfield plant in the usa and growth in deep water, especially brazil and the gulf of mexico, should result in these themes becoming cash engines early in the next decade.”

Vision - stills

Full screen of chemical tanker

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[growth]

Screen splits horizontally into three:  lower half, full-width; upper half, left and right

Lower half screen remains chemical ship

Upper left screen – chemical towers

Upper right screen – night time chemical plant

Upper screens slide up and off leaving chemical ship full-screen

Fades into ocean rig with ship

Ben van beurden voice over

“and for the future opportunities, positions that should become growth priorities in the next decade, we are driving down costs in shales basins…”

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[future opportunities]

Vision – stills

Wind turbines

Screen divides into three: large screen right, screen left upper and lower

Screen right remains wind turbines

Upper screen left – solar mirror structure

Lower screen left – row of hydrants

Left screen wipe off and fade into ben van beurden

Ben van beurden to camera

“…and we have set out a new energies strategy to succeed in the energy transition.

The bg deal is an opportunity to accelerate the reshaping of shell.

Integration is gathering pace, and today we expect to deliver more synergies there, $4.5 billion per year in 2018…”

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[bg synergies $4.5 billion per annum in 2018]

“…and we get those synergies at a faster rate.

We’ve set out a pathway for the next several years in the presentation today.

It’s ambitious…”

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[ambitious]

“…it’s transformational for the company.”

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[transformational]

“higher returns and higher free cash flow…”

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[higher returns

Higher free cash flow]

“…despite lower oil prices.

And a lower ratio of investment needed for free cash flow generation, which basically means more bang for the buck.

There’s a lot of energy and enthusiasm in the company to deliver all of this, and bg is a fantastic opportunity for us to reshape shell and to become a world-class investment case.

Thank you.”

Rolling text

[thank you for visiting our site. Please understand that an investment in royal dutch shell plc securities carries with it the risk that you could sustain losses as a result of your investment.

Therefore, an investment in royal dutch shell plc securities may not be appropriate for all investors. Accordingly, before investing in our securities we urge you to read our annual report and form 20-f and consider the risks discussed within.

You can find our annual report and form 20-f on the link next to this presentation.

Again, thank you for your interest in royal dutch shell plc]

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[definitions and cautionary note

The companies in which royal dutch shell plc directly and indirectly owns investments are separate legal entities. In this release “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 release refer to companies over which royal dutch shell plc  either directly or indirectly has control. Entities and unincorporated arrangements over which shell has joint control are generally referred to as “joint ventures” and “joint operations” respectively. Entities over which shell has significant influence but neither control nor joint control are referred to as “associates”. The term “shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by shell in a venture, partnership or company, after exclusion of all third-party interest.

This release 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’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘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 release, 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 on this release 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 risk factors that may affect future results are contained in royal dutch shell’s 20-f for the year ended december 31, 2015 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward looking statements contained in this release and should be considered by the reader.  Each forward-looking statement speaks only as of the date of this release, june 7.2016. Neither royal dutch shell plc 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 release.

With respect to operating costs synergies indicated, such savings and efficiencies in procurement spend include economies of scale, specification standardisation and operating efficiencies across operating, capital and raw material cost areas.

We may have used certain terms, such as resources, in this release 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.]

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Outro sting

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Shell pecten

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[©shell international limited 2016]