2011 strategy update - March 15, 2011

ROYAL DUTCH SHELL PLC

INVESTOR PRESENTATION

LONDON
MARCH 15, 2011

1 Copyright of Royal Dutch Shell plc 15/03/2011


PETER VOSER
CHIEF 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 and 2010 data, and includes both SEC proved oil and gas reserves and SEC proven
mining reserves for 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 2008) excluding changes resulting from acquisitions, divestments and year-
average 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
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 potential litigation and regulatory measures as a result of climate changes; (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 31 December, 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, 15 March 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
production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as resources and
oil in place, 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.


ROYAL DUTCH SHELL
STRATEGY UPDATE


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

4

3

2

Customer and Profitability & 1
partner focus performance
0
'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
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 cashflow through cycle
 Investing for growth; competitive payout
 Substantial cashflow 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
2006 2007 2008 2009 2010
UPSTREAM CORPORATE
DOWNSTREAM DIVESTMENTS/OTHER

CURRENT COST OF SUPPLY EARNINGS


2010 PERFORMANCE

PRIORITIES 2010 DELIVERY

 CCS earnings $18 bln (+56% 2009-10)
PERFORMANCE FOCUS  $2 bln underlying cost savings
 $7 bln asset sales / $7 bln acquisitions

 6 new project start-ups; oil & gas volumes + 5%
NEW WAVE OF PRODUCTION
 Launched 2 new deep water projects
GROWTH
 2010 organic reserves replacement ratio 133%

 Exploration success; 9 new discoveries; 2.3 bln
boe
PROJECT OPTIONS  Business development: tight gas, coal bed
methane, Iraq
 Brazil retail & biofuels joint venture

CURRENT COST OF SUPPLY EARNINGS EXCLUDING IDENTIFIED ITEMS


ROYAL DUTCH SHELL
PERFORMANCE FOCUS


PEFORMANCE FOCUS
COST IMPROVEMENT
UPSTREAM COSTS (> $1.5 BLN 2008-10 COST SAVINGS) GROUP COSTS
$/Bbl $ Bln
FX
20
PENSIONS
45 PROVISIONS

40 COST SAVINGS

35

15 30
2009 2010
2008 2009 2010

DOWNSTREAM COSTS (> $2.5 BLN 2008-10 COST SAVINGS) CONTINUOUS IMPROVEMENT
$/Bbl $/Mt
 Offshoring
17 200

180  Global contracting & procurement
160  Simplification & standardization
16
140

120

15 100
2008 2009 2010
OIL PRODUCTS CHEMICALS (RHS)
UNIT COST CHARTS SHOW UNDERLYING COSTS: EXCLUDES PENSIONS, FX, PROVISIONS


PEFORMANCE FOCUS
DOWNSTREAM
THREE KEYS TO WINNING DOWNSTREAM EARNINGS

CCS Earnings - $ Bln $/Bbl
Operational Excellence 8
8
 Brand 6 6

 Cost discipline 4 4
2 2
 Improving manufacturing availability 0
0
 Asset integrity -2
-4 -2
03 04 05 06 07 08 09 10
-6 -4
Concentrating the Portfolio GLOBAL INDUSTRY
REFINING MARKETING & TRADING
REFINING MARGIN
 Re-focused asset base CHEMICALS DIVESTMENT & OTHERS (RHS)
 Maximize value in heartlands DOWNSTREAM CAPITAL EMPLOYED

Selective Growth $67 Billion MARKETING & TRADING
 Marketing + selective manufacturing
 Product innovation CHEMICALS

 Brazil, Middle East and Asia Pacific 2010
REFINING

GLOBAL REACH & FULL VALUE CHAINS


PEFORMANCE FOCUS
DOWNSTREAM: COST + OPERATIONAL PERFORMANCE
EXAMPLE: PROCESS EFFICIENCY COST REDUCTION

Business-2-Business: Unit margin & costs to serve
150% 20

~ $15
 2009+10: > $2.5 billion underlying cost reduction
15
100% • Headcount: - 5,000
~ $8 10
 2011-12: $1 billion underlying cost reduction
50% ~$3.5 5 • Headcount reduction
0% 0 • Efficiency gains + C&P
2005 2010 2015 E • Business model changes
B2B unit margin Cost to Serve ($/transaction) [RHS]

DOWNSTREAM AVAILABILITY LEAN MANUFACTURING

95% Refining costs index
110%
CHEMICALS
-11%
100%

90%
REFINING

80%
90%
2008 2009 2010
2006 2007 2008 2009 2010

EXCLUDES PORTFOLIO EFFECTS


PEFORMANCE FOCUS
DOWNSTREAM: REFOCUSING MANUFACTURING
FOCUS ON LARGE INTEGRATED SITES PORTFOLIO CHANGE*

Shell refining capacity – Mln bbl/d Refinery capacity Kbbl/d (100%)
4.7
5
-30%
4 3.3
3
400  > 700,000 bbl/d exited since end-2009
2  1.6 million bbl/d exited since 2002
1
300
 Larger scale + increased sophistication
0
2002 2006 2009 2011 YTD* 2012
EUROPE & AFRICA AMERICAS ASIA PACIFIC
200
INCREASING REFINERY SCALE

Kbbl/d
100
200

150 0
EXITS 2002-2011 YTD

100 2009-2012 exit programme completed
2002 2006 2010 2012
AVERAGE REFINERY SIZE On-going portfolio management
* SUBJECT TO SUCCESSFUL COMPLETION OF ANNOUNCED DEALS


PEFORMANCE FOCUS
DOWNSTREAM: REFOCUSING MARKETING
RETAIL GROWTH PORTFOLIO CHANGE SINCE END-2009*
Retail sales volume - Bln litres

135

130

125

120
2007 2008 2009 2010
MARKETING REFOCUS
DIRECT INDIRECT/PART EXIT EXITS

100% CHANGE SINCE 2009

2009-11 DIRECT TO INDIRECT/PART EXIT
INDIRECT
50% DIRECT

0% 42 markets switched to indirect
'09 '10 '11 '12 '09 '10 '11 '12 '09 '10 '11 '12 '09 '10 '11 '12
YTD* YTD* YTD* YTD*
structure/part exit
Retail Lubricants Aviation Fuels Bulk Fuels
sites markets markets markets
Rationalization continues
* SUBJECT TO SUCCESSFUL COMPLETION OF ANNOUNCED DEALS


PEFORMANCE FOCUS
DOWNSTREAM: CASHFLOW AND RETURNS
DOWNSTREAM CASH FLOW

$ Bln
40
Focus on cashflow
 Free cashflow underpins Upstream growth + payout
8
30 2006-10
 Business mix supports through-cycle performance
~$21 billion 6 2010
20  Growth potential
4 ~$6 billion
10
2

0 0
2006-10 2010
CASH FLOW FROM OPERATIONS EX. WORKING CAPITAL
NET CAPITAL INVESTMENT

DOWNSTREAM RETURNS

25% Enhancing returns
20%  Sharp fall-off in profitability 2009-10
15% • Weak refining environment
10%

5%  Aiming for ROACE>WACC in downturns
0%  Enhancing returns through cycle
1992 1995 1998 2001 2004 2007 2010 • Availability, costs, portfolio change
Annual 5 year average
CCS EARNINGS EXCLUDING IDENTIFIED ITEMS


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 Malikai
25 10
8 Pearls (CMOC) 8 AOSP debottleneck
NA tight gas
Schiehallion
Gorgon Mars-B
Clair
NA tight gas BC-10 Phase2
15
10 11 11
Pearl GTL
AOSP-Exp 1 QG-4
Sakhalin Gjoa Oman EOR
BC-10 Perdido Schoonebeek
5 9 9 Gbaran Ubie 10 Others
NA tight gas

-5
2008 2009 2010
ON-STREAM UNDER CONSTRUCTION STUDY PRODUCTION

~10 billion barrels on stream
~11 billion barrels under construction
~10 billion barrels new options


GROWTH DELIVERY
SEC PROVED RESERVES POSITION
2008-10 RESERVES ADDITIONS

2010 RESERVES PERFORMANCE
 2010 organic3 RRR 133%
Canada
Denmark, Germany,UK Russia  Reserves life at end 2010 ~11 years

USA
2008-10 RESERVES AVG. PERFORMANCE
Oman Brunei  Organic additions ~2.0 billion boe
Brazil Nigeria  Production ~1.2 billion boe
Australia  Organic reserves replacement 164 %

MAJOR RESERVES ADDITIONS NET RESERVES 1,2

RESERVES REPLACEMENT 2008-10 2010 BILLION BOE 2008 2009 2010
ORGANIC 3 164% 133% ORGANIC RESERVES ADDITIONS 1.1 3.2 1.7

PRODUCTION 1.2 1.2 1.2
REPORTED 165% 110%
NET RESERVES 11.9 14.1 14.2
1 Reserves attributable to Royal Dutch Shell shareholders
2 Based on year end prices for 2008, and based on 12-month average price for 2009 and 2010
2008 reserves includes proven minable oil sands
3 Excludes acquisitions, divestments and year-average price impact


GROWTH DELIVERY
DELIVERING ON NEW PROJECTS
KEY POST-FID PROJECTS RESOURCES
2010 - Bln boe

Gjoa P 30
Study
AOSP-1 P Schoonebeek P
NA Port Arthur 20  ~11 billion Boe
Tight gas P Iraq FCP/IPT resources
Perdido P Qatargas 4 P Pearl GtL Singapore Under  20 Upstream
Chemicals P 10 Construction start-ups 2011-14
Mars B Qarn Alam Gumusut-Kakap
Gbaran Ubie Ph 1 P planned
Bonga Onstream
NW Amal Steam North Rankin B 0
BC-10 Ph 2 Gorgon
Pluto IMPACT OF KEY START-UPS
T1-3
(Woodside)
Kboe/d
OIL & GAS 1000
START-UP DATE
INTEGRATED GAS 2010-11
REFINING & CHEMICALS 2012-13 500
2014+
P ONSTREAM

0
2010 2011-2012 2013-2014 2015+
11 billion boe resources under construction :
„10-‟11 START UPS „12-‟13 START UPS
> 800 kboe/d potential 2014 ‟14 + START UPS

ENTITLEMENT AT $80/BBL


GROWTH DELIVERY
INTEGRATED GAS
PEARL GTL (QATAR) QATARGAS 4 (QATAR) GORGON (AUSTRALIA)
Pearl GtL plant under construction Inaugural Qatargas 4 cargo arriving at Shell Barrow Island
Hazira Regasification Terminal

 Commissioning underway; ~12  7.8 mtpa LNG + 70 kboe/d  3 LNG trains; 15 mtpa
months start-up condensates
 Carbon capture & storage
 1.6 bcf/d wet gas:  First gas into plant – Jan 2011
 Exploration upside
• 120 kboe/d NGL/ethane  First LNG export – Feb 2011
 Shell 25%
• 140 kboe/d GTL  Shell 30%
 100% Shell in partnership with QP

Part of Shell’s new integrated gas potential of ~500 kboe/d 2015


GROWTH DELIVERY
DEEPWATER
MARS-B (GULF OF MEXICO) BC-10 PHASE 2 (CAMPOS, BRAZIL) GUMUSUT-KAKAP (MALAYSIA)
Development concept Phase 1 FPSO Construction yard at Johor Bahru

 TLP capacity ~100 kboe/d  Peak production ~30 kboe/d  Peak production ~135 kboe/d
 New resources at Mars field  Argonauta O-North field  Semi submersible Floating
 West Boreas + South Deimos  Tie-back to Phase 1 FPSO Platform System

 Water depth 950 meters  Water depth 1,600 meters  Water depth 1,200 meters

 Shell 72% (operator)  Shell 50% (operator)  Shell 33% (operator)

Part of Shell’s new deepwater potential of ~200 kboe/d 2015


GROWTH DELIVERY
HEAVY OIL & EOR
AOSP-1 (CANADA) SCHOONEBEEK (NETHERLANDS) PDO (OMAN)
AOSP Jackpine mine Schoonebeek EOR development Qarn Alam steam development

 AOSP-1 mine expansion 2010 -  Started up Jan 2011  Qarn Alam steam injection
adds ~100 kboe/d  Steam injection for 20 kboe/d  Harweel miscible gas flood
 Upgrader expansion H1-2011  ~120 mln bbls potential over  Amal Steam
 255 kboe/d capacity built in 25 years  Increased recovery factors:
~10 years  Shell 30% (operator) <10% to >30%
 Next focus: optimization +  ~90 kboe/d 100% peak
debottlenecking production potential
 Shell 60% (operator)  Shell 34%
New heavy oil potential of ~90 kboe/d 2013-14


GROWTH DELIVERY
NORTH AMERICA TIGHT GAS
PRODUCTION GROWTH
Kboe/d Mmscf/d 2011 investment: ~$3 billion; >400 wells
2,000
300 Deep Basin
Canada
1,500 Foothills
200 Groundbirch
1,000
Pinedale
100 Haynesville USA
500
Marcellus
0 0 Eagleford
2006 2007 2008 2009 2010 2011 2012
SHELL ASSET BREAK EVEN PRICE Groundbirch 40 Tcfe resources potential
$/mcfe – End 2010 Deep Basin

8 Foothills
Expected gas
6
price range Pinedale
4
2 Marcellus

0
Eagle Ford Haynesville JV
Mature plays Emerging plays Total

BREAKEVEN PRICE ENTRY COST

Growth potential: ~ 300 kboe/d 2012; >400 kboe/d potential 2015


GROWTH DELIVERY
UPSTREAM PROFITABILITY + PRODUCTION
OIL & GAS PRODUCTION GROWTH PRODUCTION SPLIT
Kboe/d
Regional Thematic
4,000
100% 100%
90%
80%
75%
70%
60%
3,500
50% 50%
40%
30%
25%
20%
10%

3,000 0% 0%
2009 2010 2011 2012 2014 2010 2014 2010 2014

ASIA PACIFIC OTHER HEAVY OIL & EOR TIGHT GAS
OIL & GAS 2010 ASSET SALES SOUR INTEGRATED GAS
AMERICAS EUROPE
DEEPWATER TRADITIONAL

Continuing to high-grade portfolio through new investments + disposals
ENTITLEMENT AT $80/BBL; OUTLOOK ASSUMES LICENSE EXTENSIONS + 2010 ANNOUNCED ASSET DISPOSALS


ROYAL DUTCH SHELL
MATURING NEXT GENERATION
PROJECT OPTIONS


MATURING NEXT GENERATION OF PROJECT OPTIONS
ADDING NEW RESOURCES
EXPLORATION & ACQUISITIONS EXPLORATION SPEND

$ Bln

3 AMERICAS
OTHER
2 ASIA PACIFIC
EUROPE

1

0
EAGLEFORD EAST RESOURCES 2010 2011
APPOMATTOX
SOUTH DEIMOS AMAL SE
CARDAMOM DEEP 2010/11 average exploration spend
GERONGGONG

ACME

BC-10 MASSA BREDERODE ARROW
BMS-54: HEAVY OIL & EOR
GATO-DO-MATO
INTEGRATED GAS
2010 DEEPWATER
DISCOVERY TRADITIONAL
APPRAISAL TIGHT GAS
NEW EXPLORATION/
RESOURCES ENTRY


EXPLORATION & BUSINESS DEVELOPMENT
TOTAL POTENTIAL RESOURCES MOVEMENTS 2010 EXPLORATION RESOURCES ADDITION

Bln boe resources/potential

8 100% 100% 100%

80% 80%
6 75%
GAS
EAST 60% 60%
4 ARROW 50%
IRAQ 40% 40%
2 25%
20% 20%
OIL
0
0% 0% 0%

-2 ' 10 ' 10 ' 10
'08 '09 '10 TIGHT GAS
EXPLORATION KEY ACQUISITON/NEGOTIATED ENTRY AMERICAS
DEEPWATER
ASIA PACIFIC
DISPOSALS PRODUCTION INTEGRATED GAS
OTHER
TRADITIONAL

 2010 exploration & deals add ~6 bln boe potential  2010 exploration adds ~2.3 bln boe at < $2/boe
 2010 exploration + acquisition cost < $2/boe  3 year average finding cost at < $2/boe

Adding new resources at low cost – growth potential


LNG OUTLOOK: AUSTRALIA IN FOCUS

Prelude Floating LNG
 2007 discovery Arrow Energy LNG

 Targeting FID in 2011 Greater Sunrise
• Environmental approval received
• FEED progressing
• Field Development Plan submitted Prelude
 3.6 mtpa LNG, 0.4 mtpa LPG and 1.3 mtpa condensate
Browse
 Shell 100%

Arrow Energy LNG Project
 2010 acquisition: coal bed methane Pluto (Woodside)

 Currently supplying >20% of Queensland‟s gas
North West Shelf
 Targeting LNG FEED 2011
• 1st phase 2 trains ~8 mtpa LNG
Gorgon
 Shell-PetroChina 50-50%
PRODUCTION UNDER CONSTRUCTION POTENTIAL

~11 mtpa potential new LNG capacity in Australia


MIDDLE EAST POTENTIAL & NOC PARTNERING
MAJNOON (IRAQ) QATAR CHEMICALS KIDAN (SAUDI-ARABIA)

 ~38 billion boe oil in place  MOU signed in December  Multi-TCF sour gas opportunity
 FCP ~2012: 175 kboe/d (Shell) 2010  New seismic + wells planned
 Long-term production potential  Up to 1.5 mln tonnes mono-  Shell - Saudi Aramco 50-50%
1.8 mln boe/d ethylene glycol plant under Joint Venture
consideration
 Assessing full field options
 Could yield up to 2 mln tonnes
• Discrete, modular steps per annum finished product
• First potential FID ~2013+


CHINA GROWTH + PARTNERSHIPS

China

Changbei tight
gas

Daning CBM
Jinqiu + Fushun
tight gas Jinqiu drill-pad
SHELL CHINA
Nanhai –
Chemicals Shell – Qatar Kboe/d Mtpa
Petroleum-PetroChina
International
refining proposal 60 Oil & gas 2
Oil products
Syria : Shell – CNPC JV Chemicals (RHS)
UPSTREAM PRODUCTION
40
Qatar: block D UPSTREAM POTENTIAL
exploration Shell- 1
PetroChina DOWNSTREAM
20
2010 PROGRESS

Arrow CBM to LNG
Shell - PetroChina 0 0
2003 2004 2005 2006 2007 2008 2009 2010


MATURING NEW PROJECTS
OIL & GAS RESOURCES
2010 Resources in Bln boe
TIGHT GAS – N. AMERICA PRELUDE - AUSTRALIA

Longer-term upside

30
 >10 billion boe ARROW - AUSTRALIA APPOMATTOX - USA
resources
 > 30 new projects
 > 1 mln boe/d
STUDY potential 2018-20...
20

 ... and maturing Long-term growth and investment
UNDER further options
 Options to flex annual spending with macro
CONSTRUCTION
10
 Capex and growth outcomes
Investment decisions driven by
ON  Portfolio fit
STREAM
 Affordability
0
 Profitability

Portfolio can support profitable growth to ~2020



FINANCIAL FRAMEWORK
UPDATE

SIMON HENRY
CHIEF FINANCIAL OFFICER


CONTINUOUS IMPROVEMENT

CONTRACTING & PROCUREMENT DOWNSTREAM PORTFOLIO OFFSHORING

Procurement from emerging markets # of Retail sites „000 # of staff in shared service centres
$Mln # of Suppliers 120%
3,000 160
40
8,000

120
30
2,000 6,000

100%
80 20 4,000

1,000
40 10 2,000

0 0 0 80% 0
2008 2009 2010 2008 2009 2010 2006 2007 2008 2009 2010
BEING QUALIFIED DIRECT SITES INDIRECT SITES
SPEND SUPPLIERS
QUALIFIED COSTS (RHS)

 Sourcing from China, India,  Low cost indirect operating model  Shifting support functions to low
Russia and Mexico  Margin retention + enhancement cost shared service centres
 Up to 20 % savings versus • brand  Reducing headcount in higher
market alternatives cost locations
• customer focus
 High end specifications • differentiated products


ASSET SALES + CAPITAL EFFICIENCY

ASSET SALES PROGRESS 2010 & 2011 YTD ~$30 BILLION DIVESTMENTS – 5 YEARS
$ Bln Cumulative

30
Upstream
CORPORATE
 85 kboe/d production
UPSTREAM
 Woodside reduction, South Texas, GOM, SPDC DOWNSTREAM
licences, Statfjord 20

Downstream
 > 700 kbbl/d refining capacity exit announced
10
 Marketing switch to indirect structures/part exit
Greece, New Zealand, Finland, Sweden,
Central America, Africa, others
0
06 07 08 09 10

Allocating capital to high impact growth
Exit from late-life + non-core positions


CONVERTING INVESTMENT TO CASHFLOW: 2009-12

INVESTING FOR NEW GROWTH
$ Bln $ Bln

60 60

50 50

40 40
OTHER
30 30

20 20 CANADA
2011
10 10 START-UPS
QATAR
0 0
2007 2008 2009 2010 2011E 2012E 2010
CAPITAL UNDER
CAPITAL UNDER CONSTRUCTION EXPLORATION & EVALUATION CONSTRUCTION

AOSP debottle ph-1
Pearl GtL Gumusut-Kakap Caesar Tonga Malakai
AOSP Expansion I Port Arthur Mars-B Prelude FID / DEALS
Clair
Qatargas 4 Duvernay East Resources
Schiehallion
Singapore Chemicals Gorgon LNG BC-10 Phase 2 NA tight gas
QatarGas 4 2012-13
Nigeria T6 NWS T5 Sakhalin Perdido
Pearl GtL Corrib BC-10 Ph 2
Ormen Lange Afam Gas BC-10 AOSP mine AOSP upgrader Gumusut-Kakap 1.8 BAB/SAS START-UPS
Changbei Ursa Princess Singapore Gbaran Ubie Schoonebeek Port Arthur Kashagan Ph 1
Waterflood Chemicals Ph 1 Oman EOR Majnoon FCP North Rankin 2

ITALIC: PLANNED


REBALANCING THE FINANCIAL FRAMEWORK
SURPLUS CASHFLOW THROUGH THE CYCLE
2009 2010 2012E
$ Bln $ Bln $ Bln
2009-12 targets
~50% @ $60 scenario
50 50 50 >80% @ $80 scenario
SOURCES USES
$80/bbl
40 40 $80/bbl 40
$60/bbl

30 30 30

$62/bbl
20 20 20

10 10 10

0 0 0

$/bbl BRENT FREE CASH FLOW

CASH FLOW FROM OPERATIONS EXCL. NET ACQUISITIONS
MOVEMENTS IN WORKING CAPITAL
ASSET SALES CAPITAL INVESTMENT (2012 ON NET BASIS)

TARGETS ASSUME IMPROVED DOWNSTREAM AND NATURAL GAS
ENVIRONMENT 2009-2012

CAPITAL SPENDING + OUTLOOK

UPSTREAM NET CAPITAL INVESTMENT
% Capital investment $ Bln
30
100%
EXPLORATION

80% OTHERS HEAVY OIL & EOR
20
TIGHT GAS
EUROPE SOUR
60%
ASIA PACIFIC DEEPWATER 10
40% AMERICAS
INTEGRATED GAS
20% 0
TRADITIONAL 2009 2010 2011 2012-14
0%
2007-10 2011-14 2007-10 2011-14 NET CAPITAL INVESTMENT

DOWNSTREAM 2012-14 INVESTMENT CHOICES & FLEXIBILITY
% Capital investment
100%

80%
 Divestments up to $3 bn/year; capital efficiency
60%
MARKETING  FID pace + industry costs drive capex range
40%
REFINING
 Tight gas + exploration spend flexibility
20% CHEMICALS

0%
2007-10 2011-14
2012-14 CAPITAL INVESTMENT EXCLUDES IRAQ FULL FIELD DEVELOPMENTS


MATURING NEW PROJECTS: 2011-12

Linnorm

Schiehallion Redev
Clair Phase 2
AOSP
Debottlenecking Canada Fram
Quest CCS
Kazakhstan
Tempa Rossa Syria China
US Onshore CMOC
Appomattox Majnoon & West Qurna FFD
Gulf of Mexico
Cardamom Deep Oman
Saudi Arabia
Stones Fr Guiana Philippines
Vito Rabab/Harweel
Erha North Ph3
Bonga SW Sabah Gas KBB
Malikai
Prelude Sunrise
NWS - GWF
Arrow Energy LNG
Brazil Australia

2011 2011-12 2011-12
EXPLORATION FEED TARGET FID TARGET


FINANCIAL FRAMEWORK

CASH PERFORMANCE

 ~50-80% CFFO increase 2009-12
($60-$80 oil price scenarios)
 Surplus cash flow 2012 at $60/bbl

INVESTMENT
PAY-OUT
 $25-27 bln net capex /year
 Dividend linked to results  Up to $3 bln asset sales/year
 Scrip dividend option 2012+
 ~$10 billion expected 2011  Affordability, profitability,
portfolio

BALANCE SHEET

 0 – 30% gearing through cycle
 Balance sheet underpins
investment
 Capital employed grows
steadily

Competitive returns – cash generation – growth investment
CFFO TARGETS ASSUME IMPROVED DOWNSTREAM AND NATURAL GAS ENVIRONMENT 2009-2012



PETER VOSER
CHIEF EXECUTIVE OFFICER


OUTLOOK

PRIORITIES 2011-12 OUTLOOK

 $1 billion Downstream cost savings
PERFORMANCE FOCUS  Continuous improvement embedded in Shell
 Up to $8 bln asset sales; capital efficiency

 >20 projects under construction
NEW WAVE OF PRODUCTION  +6% production 2010-12
GROWTH
 On track for 2012 cashflow targets

 Studying > 30 new projects; 10 FIDs planned
2011-12
PROJECT OPTIONS  Upstream growth potential to ~2020
 Selective Downstream growth

Competitive performance – Profitable growth – Sharper delivery


ROYAL DUTCH SHELL
STRATEGY UPDATE
Q&A


ROYAL DUTCH SHELL
STRATEGY UPDATE

APPENDIX
RESERVES & PROJECTS


2008-2010 RESERVES SUMMARY
RESERVES IN MLN BOE

Movements 2008 2009 2010
Organic1 reserves additions 1,132 3,158 1,653
Year end price effect 19 260 -198
Production -1,189 -1,187 -1,242
Acquisition & divestment 13 2 -85
Total subsidiaries and affiliates movements 1,164 3,420 1,370
Year end positions
Total subsidiaries and affiliates reserves 11,912 14,145 14,273
Minority interests 12 13 24
RESERVES REPLACEMENT RATIOS
Net Shell reserves2 11,900 14,132 14,249

2008 2009 2010 2008-10
RRR Organic 95% 266% 133% 164%
RRR Organic incl. price effects 97% 288% 117% 167%
RRR Reported 98% 288% 110% 165%

1 Excludes acquisitions, divestments and year-average price impact
2 Reserves attributable to Royal Dutch Shell shareholders
Based on year end prices for 2008, and based on 12-month average price for 2009 and 2010
2008 proved volumes include reserves from Minable Oil Sands


KEY PROJECTS UNDER CONSTRUCTION
Start up Project Country Shell Share Peak Production LNG 100% Products Category Shell
% kboe/d Capacity Operated
mtpa
2010-11 AOSP EXP 1 P CANADA 60 100 
GBARAN UBIE PH 1 P NIGERIA 30 250 
GJOA P NORWAY 12 105
NORTH AMERICA TIGHT GAS P USA/CANADA Various ~150 * 
PEARL GTL QATAR 100 320 140 kbbl/d GTL 
PERDIDO P USA 35 100 
PLUTO LNG T1 (WOODSIDE) AUSTRALIA 22 140 4.3
QARN ALAM EOR OMAN 34 40
QATARGAS 4 LNG P QATAR 30 280 7.8
SCHOONEBEEK P NETHERLANDS 30 20 
SHELL EASTERN PETROCHEMICALS P SINGAPORE 100 800 kta ehtylene DS 
2012-13 AMAL STEAM OMAN 34 20
1.8 BAB THG & HB2 UAE 9.5 80
BC-10 PH 2 BRAZIL 50 30 
CORRIB IRELAND 45 55 
GUMUSUT-KAKAP MALAYSIA 33 135 
HARWEEL OMAN 34 40
KASHAGAN PHASE 1 KAZAKHSTAN 16.8 300
MAJNOON FCP/WEST QURNA IPT IRAQ 45/15 > 30 * 
NORTH RANKIN 2 AUSTRALIA 21 268
PORT ARTHUR REFINERY EXPANSION USA 50 325 DS
SAS ABU DHABI 9.5 115
2014+ BONGA NW NIGERIA 55 45 
MARS-B, W. BOREAS & S. DEIMOS USA 72 100 
GORGON LNG T1-3 AUSTRALIA 25 440 15

DEEPWATER TIGHT GAS SOUR
TRADITIONAL INTEGRATED GAS HEAVY OIL &
* SHELL SHARE EOR
MAJNOON + W. QURNA VOLUMES REFLECT FCP/IPT


STUDYING STRONG PORTFOLIO OF PRE-FID OPTIONS
POTENTIAL 2014-2020 START-UPS
Phase Project Country Shell share Peak production LNG (100%) Theme Shell operated
100% capacity
Kboe/d mtpa
CONCEPT Appomattox USA 80 100 
SELECTION Bonga North Nigeria 55 105 
Bonga South West Nigeria 44 200 
Bosi Field Development Nigeria 44 130
Stones USA 35 45 
DEEPWATER
Vito USA 48 100 
HEAVY OIL &
AOSP Debottlenecking Ph2&3 Canada 60 50 
EOR
Carmon Creek Ph1 Canada 100 40 
Rabab/Harweel Oman 34 40
INTEGRATED GAS
Arrow Energy LNG Australia 50 160 ~8 TIGHT GAS
Browse (BCT) LNG Australia 21 310 > 10
NLNG Train 7 Nigeria 26 220 8.4 TRADITIONAL
NWS Gas- GWF- Phase A Australia 21 110 SOUR
Sunrise LNG Australia 35 120 ~4
Fram UK 28 35 
Majnoon FFD/West Qurna FFD Iraq 45/15 >150* 
Linnorm Norway 30 50 
Pearls -Khazar Kazakhstan 55 50
Kashagan Ph2 Kazakhstan 17 530
DESIGN Erha North Ph3 Nigeria 44 40
Malikai Malaysia 35 60 
Cardamom Deep USA 100 30 
Sabah Gas: KBB/KME Malaysia 30 130
AOSP Debottlenecking Ph1 Canada 60 35 
Prelude Australia 100 110 3.6 
Gbaran Ubie Ph2 Nigeria 30 200 
North American tight gas USA/Canada Various >500 ** Various
Clair Ph2 UK 28 105
Schiehallion Redevelopment UK 36 130
Tempa Rossa Italy 25 45

* SHELL SHARE
** TOTAL SHELL PORTFOLIO; SUBJECT TO INVESTMENT PACE


2008-2010 DRILLING PERFORMANCE

Start up Well name Country Shell Share Location Water depth Oil/Gas Shell
% Operated

2008 Auezov-1 Kazakhstan 55 Offshore ~10m O
Deep Basin West, BCG Canada ~ 70% Onshore - G 
Groundbirch Canada 100 Onshore - G 
Haynesville US, Louisiana 50 Onshore - G 
Libra-1 Australia 65 Offshore ~120m OG 
ML-J206T1 Malaysia 35 Offshore ~65m OG
2009 Achilles-1 Australia 25 Offshore ~4535m G
Cardamon Deep US, GoM 100 Offshore ~870m OG 
Concerto Australia 100 Offshore ~280m G 
Gro Norway 50 Offshore ~1380m G 
Kentish Knock Australia 50 Offshore ~1220m G
Satyr Australia 25 Offshore ~1100m G
Vito US, GoM 55 Offshore ~1,200m O 
West Boreas US, GoM 100 Offshore ~960m O 
2010 Acme-1 Australia 33 Offshore ~878m G
Amal SE Oman 33 Onshore - O
Appomattox US, GoM 80 Offshore ~2200m O 
Brederode-1 Australia 50 Offshore ~1387m G
Cardamon Deep US, GoM 100 Offshore ~870m OG 
Gato do Mato Brazil 80 Offshore ~2000m O 
Geronggong-2 Brunei 50 Offshore ~1000m O 
Massa Brazil 50 Offshore ~1600m O 
South Deimos US, GoM 100 Offshore ~960m O 


ROYAL DUTCH SHELL
STRATEGY UPDATE

APPENDIX
SUPPORTING SLIDES UPSTREAM


UPSTREAM STRATEGY

TECHNOLOGY, INTEGRATION AND SCALE

Build Resource Base
 Global exploration
 Focused acquisitions
 Continued portfolio high grading

Accelerate Resources to Value
 Grow profitable production
 Top Quartile project delivery 2010

 Operational excellence & cost leadership  3.3 million boe/d production (+5%)
 ~14 billion boe reserves
Competitive Differentiation  ~25 countries
 Integrated Gas leadership
 $25 billion cashflow
 Technology + partnerships
 $21 billion net capital investment


UPSTREAM GLOBAL OVERVIEW

KEY ASSET OVERVIEW

Ormen
Lange
Groundbirch West Shetland Salym
North Sea
Athabasca
Oil Sands Corrib Netherlands
Kashagan Sakhalin
Tempa Rossa
Marcellus Changbei
Aera Haynesville
Egypt Iraq
Qatar
Gulf of Mexico UAE
Oman
MLNG Philippines
REPORTING SEGMENT Nigeria Malakai / Sabah
Nigeria SPDC Brunei, BLNG
AMERICAS Gabon Gumusut-Kakap
Deepwater
EUROPE
ASIA PACIFIC
OTHERS: Deepwater Brazil
RUSSIA/CIS/MIDDLE EAST/AFRICA Prelude
Arrow Energy LNG
Gorgon
KEY FIELDS/PROVINCES/LNG VENTURES NWS
UNDER CONSTRUCTION
DESIGN


UPSTREAM REGIONAL OUTLOOK - EUROPE

KEY PROJECTS FINANCIALS
$ Bln

10 CFFO CAPEX

5

0
2006 2007 2008 2009 2010
Gjoa Platform, Norway
OIL & GAS PRODUCTION
Kboe/d
1000
2011+
• Schoonebeek
• Corrib
500
• Clair Phase 2
• Tempa Rossa

0
2009 2010
Oil production - Schoonebeek UNITED KINGDOM NORWAY DENMARK
NETHERLANDS ITALY OTHER
The Netherlands


UPSTREAM REGIONAL OUTLOOK - AMERICAS

$ Bln
20
CFFO CAPEX

10

0
2006 2007 2008 2009 2010

Kboe/d
1000
2011+
• AOSP Exp 1
• Perdido
500
• Onshore gas
• Mars B
• BC10 Ph2
0
2009 2010
Tight Gas drilling Espirito Santo FPSO USA CANADA BRAZIL ARGENTINA OTHER
Groundbirch Canada BC-10 Brazil


UPSTREAM REGIONAL OUTLOOK – ASIA PACIFIC

$ Bln
10
CFFO CAPEX

5

0
Changbei – Tight Gas 2006 2007 2008 2009 2010
China
Kboe/d
1000
2011+
• Pluto (Woodside)
• Gumusut-Kakap
500 • Gorgon T1-3
• Prelude
• Arrow Energy LNG
• Malakai
0
2009 2010
AUSTRALIA MALAYSIA BRUNEI CHINA OTHER
Prelude FLNG


UPSTREAM REGIONAL OUTLOOK – MIDDLE EAST,
RUSSIA, CIS, AFRICA
$ Bln
20
CFFO CAPEX

10

0
Pearl GTL 2006 2007 2008 2009 2010
Qatar
Kboe/d
1500
2011+
1000 • Qatargas 4
• Pearl GtL
• Oman EOR
500 • Bonga NW
• Majnoon
• West Qurna 1
0
2009 2010
Gbaran Ubie NIGERIA OMAN ABU DHABI OTHER
Nigeria


2011 strategy update - March 15, 2011

2011 strategy update - March 15, 2011

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