$ million
Adj. Earnings ¹
Cash capex
Integrated Gas
Oil Products
Refining & Trading
Less: Non-controlling interest
Q2 2021
Q1 2021

1 Income/(loss) attributable to shareholders for Q2 2021 is $3.4 billion. Reconciliation of non-GAAP measures can be found in the unaudited results, available on www.shell.com/investors





Welcome to our second quarter 2021 results presentation. Today, Jessica and I will talk

about how we are delivering on our Powering Progress strategy, we will share an update on

our financial framework and then we will provide insights into our strong Q2 performance.

The past year has proven to be challenging. In this environment, our operations, our supply

chains and our people have shown immense resilience and we have continuously delivered

safe operations, robust business performance and unmatched cash flows. So, although

volatility in commodity prices and demand recovery might still continue for some time, we are

confident in the strength of our cash generation potential.

Therefore, we are moving to the next phase of our capital allocation framework and we are

stepping up distributions to our shareholders. We are rebasing our dividend and launching

share buybacks this quarter, which Jessica will cover in more detail in a moment.

In our Powering Progress strategy, we are moving at pace to a net-zero emissions company

purposefully and profitably. We are providing energy that the world needs today, while also

building the energy business of the future. That is what Powering Progress is about.

So today, I will share the progress we are making in three areas: hydrogen, refining and

carbon capture and storage technology - or CCS.

In hydrogen, we are building on our leading position. By 2035, we aim to achieve a doubledigit

share of sales of clean hydrogen, which is a market poised for growth.

We are currently offering our customers the opportunity to fuel with hydrogen across 50 sites

for light-duty vehicles globally. And recently, we opened the first hydrogen station for trucks

in the United States, and in the Netherlands, buses can refuel within 10 minutes. With a full

tank of 25 kilos of hydrogen, buses can travel over 400 kilometres.

These are the first steps in building an extensive hydrogen network. In Europe, we are

partnering with Daimler to roll out a hydrogen-refuelling network of 1200 kilometres which

will join three green hydrogen production hubs. We have also started up Europe's largest

PEM electrolyser in Germany for the production of green hydrogen with 10 megawatts

capacity and plans are under way to expand it to 100 megawatts.

In refining, our strategy is to concentrate our portfolio into 5 Energy & Chemicals parks by the

end of the decade, and that's from 8 refineries as of today. Our updated target reflects the

sale of the Deer Park refinery. And, even in a challenging environment for refining, we have

been making great progress in rationalising our portfolio and divesting refineries for value.

And, by divesting, closing or converting our refineries, we are reducing Shell's Scope 1 and 2

emissions from refining by around 50% since 2018.

With CCS, as part of our strategy to reduce our own carbon emissions and those of our

customers, we aim to capture and store an additional 25 million tonnes of CO2 a year by


And we have recently made announcements on two important CCS projects – Polaris at our

Scotford facility in Canada, and the Acorn project in the UK. These will help us deliver lowcarbon

energy solutions to our customers and they make important contributions to our 2035

CCS ambition.

This is tremendous progress across our business pillars in delivering our strategy and while we

transform and build the business of the future, our financial delivery remains strong.

Jessica, over to you.


Thank you, Ben.

With strong results in the previous quarters and outstanding cash generation from our

businesses, we have reduced net debt by $12 billion since Q2 last year. This resilient

performance gives us the confidence to move to the next phase of our capital allocation


We committed to increase shareholder distributions once we reduced net debt. And today

we are delivering on that commitment. Starting from Q2 2021, we are rebasing our dividend

to 24 US cents per share, an increase of 38% from Q1 2021. This rebased dividend is now at

a more meaningful level, and more in line with our cash generation track record. In addition,

we will buy back up to $2 billion of our shares in the second half of 2021. As a result, we

expect the full year 2021 shareholder distributions to be around the middle of the 20 to 30%

range of our cash flow from operations. And, from 2022, we plan to announce distributions

on a quarterly basis.

As we move into the next phase of our capital allocation, let me emphasise that our cash

priorities remain unchanged.

The first priority is disciplined base Cash capex and paying ordinary progressive dividends to

our shareholders. Base Cash capex is the minimum spend that allows us to sustain our

strategy… balancing between maintaining our assets, sustaining cash flows and investing for

growth. We expect base Cash capex to be between $19 and 22 billion per year. And we

will also grow our dividend per share by about 4% a year, subject to Board approval, in line

with our progressive dividend policy.

The second priority is ensuring we have a strong balance sheet. For that, we will target AA

credit metrics through the cycle.

That brings me to the third priority of our financial framework: additional shareholder

distributions. These incremental distributions may be in the form of share buybacks and/or

dividends. Every quarter, the Board will decide the amount of distributions above the ordinary

dividend level, looking to optimise capital allocation between shareholder returns, balance

sheet strength and accretive growth. The total distribution amount will then be tested to

ensure it falls within the 20 to 30% range of the previous four-quarter rolling CFFO, rather

than being determined by a target percentage within this range.

And finally, our fourth priority any cash surplus will be allocated in a balanced way between

additional Cash capex and continued strengthening of the balance sheet. We will allocate

the additional Cash capex in a measured and disciplined manner, and we expect to spend

more than half of it on our Growth pillar.

This brings me to our performance in Q2 2021. Once again, we delivered strong financial

results for the quarter. Our Adjusted Earnings increased to $5.5 billion, from $3.2 billion in

Q1. Our Adjusted EBITDA, was $13.5 billion on a current cost of supplies basis. And we

delivered $14.2 billion of cash flow from operations excluding working capital movements...

one of the highest levels of cash generation on record. This shows we are well positioned to

benefit from the global economic recovery. Our performance was particularly strong in

Marketing, boosted by outstanding performance in Retail. Good margin management and

growing convenience retail resulted in one of the best quarterly results for Retail in the last

decade. And our cash conversion was once again robust, across all businesses, which shows

the quality of our portfolio.

To demonstrate our strategy in action, I will highlight an important achievement from our

Upstream joint venture BGC, in Basrah, Iraq. BGC will bring energy to around a million more

homes than today, by capturing, processing and selling gas that companies in the region

would otherwise flare. And, to support this development, the IFC of the World Bank, together

with 8 international banks, is providing essential funding, a first of its kind in the Iraqi oil and

gas sector, helping the country to access international capital markets. This funding will

increase BGC’s ability to reduce greenhouse gas emissions by around 10 million tons per

annum, while materially improving local air quality. This is a great example of how our

businesses contribute to our goals of Powering Lives, by providing energy and Respecting

Nature, by reducing emissions.

And with that, let's return to Ben.


Thank you, Jessica.

Today, I hope we have shown you how Shell is changing, progressing on the goals of our

strategy and delivering value. Value today. Value tomorrow and value for decades to come.

To shareholders and to wider society. Helping society heading towards net-zero emissions.

That is our strategy. That is Powering Progress.

Thank you.

Royal Dutch Shell plc

July 29, 2021



Adjusted Earnings is the income attributable to RDS plc shareholders for the period, adjusted for the after-tax effect of oil price changes on

inventory and for identified items. In this presentation, “earnings” refers to “Adjusted Earnings” unless stated otherwise. Adjusted EBITDA

(FIFO basis) is the income/(loss) attributable to Royal Dutch Shell plc shareholders adjusted for identified items; tax charge/(credit);

depreciation, amortisation and depletion; exploration well write-offs and net interest expense. Adjusted EBITDA on a CCS basis is used to

remove the impact of price changes on our inventories in our Oil Products and Chemicals segments, therefore enabling comparisons over

time. In this presentation, “operating expenses”, “costs” and “underlying costs” refer to “Underlying operating expenses” unless stated

otherwise. Underlying operating expenses represent “operating expenses excluding identified items”. Operating expenses consist of the

following lines in the Consolidated Statement of Income: (i) production and manufacturing expenses; (ii) selling, distribution and

administrative expenses; and (iii) research and development expenses. Cash flow from operating activities excluding working capital

movements is defined as “Cash flow from operating activities” less the sum of the following items in the Consolidated Statement of Cash

Flows: (i) (increase)/decrease in inventories, (ii) (increase)/decrease in current receivables, and (iii) increase/(decrease) in current payables.

In this presentation, “capex” refers to “Cash capital expenditure” unless stated otherwise. Cash capital expenditure comprises the following

lines from the Consolidated Statement of Cash Flows: Capital expenditure, Investments in joint ventures and associates and Investments in

equity securities. Free cash flow is defined as the sum of “Cash flow from operating activities” and “Cash flow from investing activities”.

Organic free cash flow is defined as free cash flow excluding inorganic cash capital expenditure, divestment proceeds and tax paid on

divestments. In this presentation, “divestments” refers to “divestment proceeds” unless stated otherwise. Divestment proceeds are defined as

the sum of (i) proceeds from sale of property, plant and equipment and businesses, (ii) proceeds from sale of joint ventures and associates,

and (iii) proceeds from sale of equity securities. Net debt is defined as the sum of current and non-current debt, less cash and cash

equivalents, adjusted for the fair value of derivative financial instruments used to hedge foreign exchange and interest rate risks relating to

debt, and associated collateral balances. Reconciliations of the above non-GAAP measures are included in the Royal Dutch Shell plc

Unaudited Condensed Financial Report for the second quarter and half year ended June 30, 2021.

This presentation contains the following forward-looking non-GAAP measures: Cash capital expenditure and Underlying operating

expenses. We are unable to provide a reconciliation of the above forward-looking non-GAAP measures to the most comparable GAAP

financial measures because certain information needed to reconcile the above non-GAAP measures to the most comparable GAAP financial

measures is dependent on future events some of which are outside the control of the company, such as oil and gas prices, interest rates and

exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is

extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which

cannot be reconciled to the most comparable GAAP financial measures are estimated in a manner which is consistent with the accounting

policies applied in Royal Dutch Shell plc’s consolidated financial statements.

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this presentation

“Shell”, “Shell Group” and “Group” 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 Royal Dutch Shell plc and its subsidiaries in

general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or

entities. “Subsidiaries”, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to entities 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 an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

This presentation contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995)

concerning the financial condition, results of operations and businesses of 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 “aim”, “ambition”, “anticipate”, “believe”, “could”, “estimate”, “expect”, “goals”, “intend”, “may”,

“milestones”, “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 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; (m) risks associated with the impact of

pandemics, such as the COVID-19 (coronavirus) outbreak; and (n) changes in trading conditions. No assurance is provided that future

dividend payments will match or exceed previous dividend payments. 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 risk factors that may affect future results are contained in Shell’s plc’s Form 20-F for the

year ended December 31, 2020 (available at www.shell.com/investors and www.sec.gov). These risk factors also expressly qualify all

forward-looking statements contained in this presentation and should be considered by the reader. Each forward-looking statement speaks

only as of the date of this presentation, July 29, 2021. 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 presentation.

The content of websites referred to in this announcement do not form part of this announcement. We may have used certain terms, such as

resources, in this presentation that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our

filings with the SEC. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website



Ben van Beurden (CEO, Royal Dutch Shell plc) and Jessica Uhl (CFO, Royal Dutch Shell plc) hosted the results analyst webcast of the second quarter 2021 results on Thursday July 29th, at 12:30 BST (13:30 CEST and 07:30 EDT).