Downstream Open House: Delivering A World-Class Investment Case

Downstream Open House
Delivering a world-class investment case
Royal Dutch Shell plc

March 21, 2018
#makethefuture
Royal Dutch Shell March 21, 2018

John Abbott
Downstream Director
Royal Dutch Shell

Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves. Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC
Definitions & proved oil and gas reserves. Resources are consistent with the Society of Petroleum Engineers (SPE) 2P + 2C definitions.
The Mountains and Oceans scenarios are based on plausible assumptions and quantification, and they are designed to stretch management thinking and even to consider events that may only be remotely possible. Scenarios
cautionary note
therefore, are not intended to be prediction of likely future events or outcomes. Accordingly, investors should not rely on them when making an investment decision with regard to Royal Dutch Shell plc securities.
Operating costs are defined as underlying operating expenses, which are operating expenses less identified items. Organic free cash flow is defined as free cash flow excluding inorganic capital investment and divestment
proceeds. Unit costs for Refining and Trading are defined as operating expenses divided by refinery intake volumes. Yield on costs for Marketing are defined as CCS earnings excluding identified items divided by operating
expenses. Integrated indicative margin is defined as a theoretical margin available to be captured by our integrated portfolio of Refining and Trading assets excluding portfolio impact. Breakeven margin is defined as minimum
integrated margin required for zero earnings in Refining and Trading.. Gross margin is defined as net proceeds less cost of goods sold, on a CCS basis, and primary transport expenses. Income per site is defined as ratio of
CCS earnings excluding identified items to the total number of Retail branded sites. Sales by region is defined as sales volumes across each of the regions Americas, East and Europe & Africa. Earnings per FTE is defined as
ratio of CCS earnings excluding identified items to the number of employees in Lubricants, Aviation and Specialties. Clean CCS ROACE (Return on Average Capital Employed) is defined as defined as the sum of CCS earnings
attributable to shareholders excluding identified items for the current and previous three quarters, as a percentage of the average capital employed for the same period. Capital employed consists of total equity, current debt
and non-current debt. Capital investment comprises capital expenditure, exploration expense excluding well write-offs, new investments in joint ventures and associates, new finance leases and investments in Integrated Gas,
Upstream and Downstream securities, all of which on an accruals basis.. Divestments comprises proceeds from sale of property, plant and equipment and businesses, joint ventures and associates, and other Integrated Gas,
Upstream and Downstream investments, reported in “Cash flow from investing activities (CFFI)”, adjusted onto an accruals basis and for any share consideration received or contingent consideration recognised upon
divestment, as well as proceeds from the sale of interests in entities while retaining control (for example, proceeds from sale of interest in Shell Midstream Partners, L.P.), This presentation contains the following forward-looking
Non-GAAP measures: Organic Free Cash Flow, Free Cash Flow, Capital Investment, CCS Earnings less identified items, Operating Expenses, ROACE, Capital Employed and Divestments. 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 measure to the most comparable
GAAP financial measure is dependent on future events some which are outside the control of the company, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures consistent
with the company accounting policies and 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 measure are calculated in a manner which is consistent with the accounting policies applied in Royal Dutch Shell plc’s financial
statements. The financial measures provided by strategic themes represent a notional allocation of ROACE, capital employed, capital investment, free cash flow, organic free cash flow and underlying operating expenses of
Shell’s strategic themes. Shell’s segment reporting under IFRS 8 remains Integrated Gas, Upstream, Downstream and Corporate.
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal 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 Royal Dutch Shell plc and 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 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 “aim”, “ambition’, ‘‘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 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; and (m)
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
Royal Dutch Shell’s 20-F for the year ended December 31, 2017 (available at www.shell.com/investor 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, March 21, 2018. 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. We may have used certain terms, such as resources, in this presentation 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
Royal Dutch Shell March 21, 2018 3

Summary Key messages
 Significant and increasing cash and returns to support world-class investment case
Thrive in  Increasing portfolio resilience, leveraging technology, digitalisation and

the energy new business models
transition
 Transformational and profitable growth

World-class
 Organic free cash flow per annum:
investment
case  by 2020: $6-7 billion
 by 2025: $9-12 billion
 Capital employed by 2025: Oil Products: + 30-35%; Chemicals: +>50%
Strong
license  ROACE >15%
to operate
 Leading through the Energy Transition

2017 ~$54 2019-21** ~$60
Strategic
themes Strategic Capital employed Free ROACE
Capital employed
Free ROACE
($ bln cash flow cash flow*
delivery: themes end 2017) ($ bln p.a) (%)
($ bln)
($ bln p.a) (%)
on track
Cash engines ~59% ~14 ~9 ~70% 25-30 >10
Growth
~27% ~2 ~4 ~20% 1-2 ~5
priorities
Emerging
~6% ~(1) ~(4) ~5% (2) - (1) ~5
opportunities
Organic FCF ~15 25-30

Divestments &
acquisitions
~12 >5
Price sensitivity:
+/- $10 Brent = Total (incl.
+/- ~$6 billion CFFO Corporate)
283 ~28 ~6 ~290 30-35 ~10
* 2019 – 21: 2016 RT $60 per barrel, mid-cycle Downstream

** Includes Deep water in cash engines and Shales in growth priorities by 2020

Downstream:
Leadership Team
John Abbott Huibert Vigeveno István Kapitány Lori Ryerkerk Andrew Smith Graham van’t Hoff
Downstream Director EVP Global Commercial EVP Retail EVP Manufacturing EVP Trading & Supply EVP Chemicals
Bjorn Fermin Gerard Penning John Hollowell* Martin Bambridge* Fabian Ziegler*
EVP Downstream EVP Downstream EVP Pipelines Downstream EVP Contracting
Finance Human Resources General Counsel & Procurement
* Not present today

Downstream:
An integrated story
Chemicals Refining
Supply &
Global Commercial Trading
Customers Retail
Upstream &
Integrated Gas

Downstream: Oil and liquid demand outlook Chemicals demand outlook
Business Million barrels per day

120
Petrochemicals* demand in kT per annum
500.000
environment 110 400.000
100 300.000
Asia 52%
90 200.000
Asia 37%
80 100.000
70 0
2010 2015 2020 2025 2030 2035 2040 2000 2005 2010 2015 2020 2025 2030
Shell ‘Oceans’ scenario Shell ‘Mountains’ scenario N. America S. America Europe

IEA Current Policy scenario IEA New Policy scenario Middle East Asia Others
 Demand still expands well into the 2030s  Major growth in demand, in excess of GDP growth
 Passenger vehicles consumption represents  Chemicals enabling CO2 reduction

Demand for Oil ~25% of overall liquid hydrocarbon demand
Products and
petrochemicals is still
growing in the 2030s
* Cracker base chemicals (Aromatics, derivatives, Ethylene, Propylene and Isobutylene). Source HIS/Shell analysis

Oil Products: Global vehicle sales Global vehicle fleet
Business Million vehicles/year Million vehicles

140
environment 2.000
120
1.500
100
80
1.000
60
40
500
20
0 0
2015 2020 2025 2030 2035 2040 2015 2020 2025 2030 2035 2040
Internal combustion engine (ICE) Plug-in hybrid EV (PHEV) Battery EV (BEV)
 An aggressive EV scenario – not a forecast: one example
Company analysis

Downstream Cash engine Growth priority
Marketing Refining & Trading Chemicals
 Further strengthen
our financial
performance Capital employed: $17 billion Capital employed: $24 billion Capital employed: $15 billion
Sales volumes: 6.6 mboe/d Refinery processing: 2.6 mboe/d Sales volumes: ~18 mtpa
 Upgrading
Capital Investment: $3-4 billion
our portfolio Capital investment: $4-5 billion
 Chemicals
growth priority
Capital employed and volumes based as per end Q4 2017. Capital investment is in period 2018-2020.

Downstream Cash engine Growth priority
strategy: Marketing Refining & Trading Chemicals
A reminder
 Global #1 Brand  Large, complex integrated sites  Advantaged and flexible

 Differentiated Fuels & Lubricants in Trading hubs feedstocks
 Growth  Competitiveness  Strong product portfolio
 Non-fuels retailing  Rationalization nearing  Proprietary technology
 HSSE – a core value  Low Carbon Fuels completion  Enabling CO2 reduction
Driven through new business models, customer connectivity,

innovation and digitalisation
Source brand preference: Ipsos – Global Customer Tracker (covering 30+ markets)

Safe + reliable Process safety/environment – Downstream Personal safety – Downstream
operations # Tier 1 & 2 Process Safety Incidents

200
TRCF/million working hours
Operational 150
2
excellence 100
1
50
0 0
2011 2012 2013 2014 2015 2016 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Tier 1 Tier 2 TRCF/million working hours TRCF trendline
Refining & Trading Marketing Refining - Asset utilisation

Unit costs (Index 2013) Yield on costs (Index 2013) %
100 80
225
75 76
150
50 75 72
2013 2017 2020E 2013 2017 2020E 2010 2011 2012 2013 2014 2015 2016 2017
Asset utilisation Asset utilisation - 4-year average

Downstream Cash flow Capital employed
Financial $ billion
15
$ billion
15
$56 billion at end 2017
performance 10 10
5 5
0 0
2013 2014 2015 2016 2017
-5 -5
-10 -10
CFFO excluding working capital Working capital movement Free cash flow (RHS) Refining & Trading Marketing Chemicals
Earnings Earnings by sub-segment + ROACE

$ billion % $ billion %
25 100 10 20
20 80
15 60
 Strong cash 10 40
5 10
generation
5 20
 Competitive returns 0 0 0 0
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
-5 -20
Downstream Upstream Integrated Gas Corporate Marketing Refining & Trading Chemicals ROACE (RHS)
Earnings and ROACE on CCS basis,
excluding identified items DS as of % RDS (RHS)

Competitive Oil Products – ROACE Downstream – Cash flow from operations
performance % $ billion
15
World-class 20%
10
investment 10%
case
5
0% 0
2010 2011 2012 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Shell Peer group Shell Peer group range
Chemicals – ROACE Global brand preference

% %
30% 25
20
20%
15
10
10%
5
0% 0
2010 2011 2012 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Shell Peer group Shell Peer group
Company analysis of competitors cash flow from operations; Earnings on local GAAP basis adjusted for inventory valuation differences and excluding identified items. 2016 Capital Employed is
used as proxy for calculating 2017 ROACE. Oil products peer group excludes Total: no separate oil products disclosure. Source brand preference: Ipsos – Global Customer Tracker (covering
30+markets)
“Exposure Geographical exposure Chemicals – feedstock exposure
and resilience” Earnings per region % of feedstock
Resilient
today…and
tomorrow 2017 2025 2017 2021 2025
East
Europe & Africa
Americas Oil Gas
Marketing – earnings growth to 2025 Refining & Trading – Breakeven margin

$ billion $ per barrel
3 10
9
Capital employed 2
2025: 8
 Oil Products: +30-35%
1
7
 Chemicals: +>50%
0 6
Base growth New customers Resilient sectors New revenues 2011-2013 2014-2017 2020E
Earnings on CCS basis, excluding identified items Retail Global commercial

Offering more
and cleaner Transport Electronics Biofuels
energy Lighter vehicles, Digitalisaton Conventional and advanced

Mobility efficiency CNG/LNG
solutions Construction
Energy & water
Light & Heavy Duty Vehicles
Fuel additives,
Insulation and Low temperature detergents and Marine
energy efficiency
New businesses
Hydrogen CCS, Emissions Trading,
Network development District heating, Solar
Electricity
Smart and fast charging
offer for EVs
Nature-based and
technology solutions
to offset CO2 emissions

Innovation
& Customer
Technology Digitising the core New business models

Shell is developing
and adapting the  Chemicals technology R&D  Data analytics  LubeChat
technology of the
 Improvement to refining  Technology use in monitoring  Pilots: Fitcar, TapUp, AccuPort
future, building
on our customer technologies and operation of plants,
 Connected customers
connectivity terminals and vessels
 New fuels and lubes (e.g. Jaguar Land Rover,
development Shell app)

Summary Key messages
 Significant and increasing cash and returns to support world-class investment case
Thrive in  Increasing portfolio resilience, leveraging technology, digitalisation and

the energy new business models
transition
 Transformational and profitable growth

World-class
 Organic free cash flow per annum:
investment
case  by 2020: $6-7 billion
 by 2025: $9-12 billion
 Capital employed by 2025: Oil Products: + 30-35%; Chemicals: +>50%
Strong
license  ROACE >15%
to operate
 Leading through the Energy Transition

Marketing
István Kapitány
EVP Retail
Royal Dutch Shell

Shell has the Earnings: Marketing
most profitable $ billion

Earnings split (2017)
ROACE 26%
Marketing
businesses in 4
the industry EU +
Africa
Americas
Chemicals
2 Balanced
portfolio2
East
0 Refining &
2013 2014 2015 2016 2017 Trading
Shell Peer group Others
 Customers first Marketing Global

+$1.4 billion  Top line growth through differentiation commercial
Retail
2017 vs 2013
 Active portfolio management
earnings growth
 Simplification & Offshoring
Downstream
Earnings and ROACE on CCS basis, excluding identified items; Peer group: BP and Total, published annual reports, Shell analysis
2 - Geographic distribution of Marketing earnings in 2017. Retail includes Raizen Combustiveis
Shell retail is # of sites worldwide of selected retailers1
the #1 mobility
retailer GAP
ZARA
Carrefour
Total Aslam Khoso – Global Service Champion Winner 2016
30M+
Shell
Starbucks
BP
Customers per day
Shell Reference industry IOCs

70
Markets
+ 44K+
Locations
1 – Source: Latest published company annual reports:
Sites (in thousands): BP: ~18; Total: ~16.5; Gap: ~1.6; Zara: ~2.2; Carrefour: ~12; Starbucks: ~27
Retail includes Raizen Combustiveis
Shell retail has Earnings: retail Gross margin contribution
grown strongly $ billion ROACE

24%
since 2013 2 >7%
Main-grade fuel
CAGR
1 50% Convenience retail

V-Power™
Fleet solutions
Loyalty
0
2013 2017
 Differentiated Programmes Yield on cost Income per site

 Active Portfolio Management Index (2013=100) Index (2013=100)

200 200
154 131
100 100
+~$600 million 100 100
2017 vs 2013 Selected retailers1

earnings growth
0 0
2013 2017 2020 2013 2017
1 - Source: Latest published company annual reports for Carrefour, Couche Tard, Sainsbury’s, Starbucks, Tesco and Walmart. Earnings and ROACE on CCS basis, excluding identified items; Retail
includes Raizen Combustiveis. CAGR: compound annual growth rate

Shell retail Brand value1 Preferred IOC across 62 countries2
success is built $ billion
upon brand
and 39 51
differentiation
Total
30 BP
Coca-Cola
28 Nike
Esso
Chevron
21 Total
20 BP
Mobil
1 - Source: Brand Finance Global 500 (2018)
2 - Source: IPSOS, Global Customer Tracker – Shell analysis based on GCT, an independent survey conducted by Ipsos across 62 markets in 2017

V-Power™ is the best selling premium fuel in the world
V-Power™ penetration: branded sales Iconic partners
%
20%
10%
0%
2013 2015 2017 2020E
US ‘street price’ for premium fuels2 Market share: premium fuels in the UK3
$ per gallon
Shell
Esso
BP
Sainsburys
Tesco
Morrisons
Others
Shell Major Minor Regional Hypermarket
1 – Source: Shell estimate based on number of markets and sites selling Shell V-Power™ and extrapolated from public data where available 2 - Source – 16M+ transactions. Period: 21st Feb 2017 – 15 Feb 2018. Source: OPIS – Oil Price Information Service (2018)
3 - Source: Kantar Worldpanel Petrol Service report (2017) – based on 2K UK Motorists surveyed across a 12-month period

Shell is the
>7 Million
#1
largest global
provider of Shell cards are accepted
in >200,000 roadside
solutions for locations worldwide
Active Shell cards
business fleets Network
2 Million
Customers served every day
Fleet of trucks Fleet of cars/vans

$2+ billion road services turnover Digital offers & Mobility Services
Quality and low emission fuels CO2 offsetting & electric mobility
Management information, advanced
Growing through car-sharing, ride-sharing
controls & security and leasing

Securing our position as the leading global mobility retailer
Our 5 Ambitions by 2025
1 2 3 4 5
50% 20% >50% Every customer 100%
Share of Of our fuels Reduction in carbon Treated like a Of Shell service
margin from margin from low intensity of Shell guest at Shell service stations committed to
non-fuels retail at emission energy service stations at stations and in the reduce waste & benefit
company sites solutions at company sites digital world local communities
company sites

Significantly
growing our
convenience
retail business
Growth in # of stores
Shell convenience store - Singapore Broaden our range of coffee and food offers
>5,000
Basket check out in 5 seconds (pilot with Developing unmanned cashier with
IBM) – United Kingdom Bingo Box Technology - China
2017 - 2020 2020 - 2025 2017 - 2025

Leading through
the energy
transition
with tangible
actions
Hydrogen network development – USA & Germany 20+ ‘recharge’ locations – UK & The Netherlands
500 ultra-fast charge posts with IONITY in next 2 years – Europe Integrated charging solutions

Innovating with award winning digital solutions for our customers
Shell Motorist App active in In-car payments with Jaguar Land Mobile payment in UK, Turkey, Fuel delivery to your door in NL
36 markets and voted the Best Rover and General Motors Germany, China and US with a ‘Tap’ on your phone
Mobile App1 available to customers2
1- Shell App: Gold Award for Best Mobile App experience in EMEA in Dec 2017 by Mobile Marketing Association; GLOMO Award Winner for Best use of mobile for Retail, Brands & Commerce in Feb 2017 by Mobile World Congress - GSMA. 2- Available
from UK 2015, Turkey 2016, DE & China 2017 and US 2018
Outlook to Earnings: retail
2025 aiming $ billion
ROACE 24% >20% >20%

for significant New revenues 4
growth in retail Grow convenience retail

5,000 new stores
New offers
Resilient sectors 2
Grow fleet solutions
New customers
5,000 new sites: China, India,
Indonesia, Mexico and Russia 0
2013 2017 Growth levers 2020 Growth levers 2025
+>$1.5 billion
2025 vs 2017
earnings growth
Grow Base
V-Power™
5,000 new sites
40M+ 90+ 55K+
Customers Markets Locations
Earnings and ROACE on CCS basis, excluding identified items

Marketing
Huibert Vigeveno
EVP Global Commercial
Royal Dutch Shell

Global Lubricants - global lubricants market share1 Aviation - sales by region (in 2017)
commercial: % Europe & Africa
the B2B arm of 10% East
Shell Americas
5%
0%
ExxonSupplier BP TOTAL
Mobil
Specialties - sales by region (in 2017)

Europe & Africa
1M+ 150
East
Americas
B2B customers Markets

 Attractive industries
 Fully integrated
 Resilient
#1
in Lubricants
1 – Source: Kline & Company (2017)

Global Earnings: global commercial
commercial $ billion
2 ROACE  Premium & organic growth
delivered 26%
exceptional > 6%
 Supply chain footprint
returns 1
CAGR

0
2013 2017
Yield on cost1 Earnings per FTE

Index (2013=100) Index (2013=100)
212
200 200
Selected retailers1 150
+>$300 million 100

100
100
100
2017 vs 2013
earnings growth
0 0
2013 2017 2020 2013 2017
1 - Source: Latest published company annual reports - Akzo Nobel, Fuchs, Valeo, Valvoline & World Fuel Services. Earnings and ROACE on CCS basis, excluding identified items. CAGR:
compound annual growth rate

Shell lubricants Brand share of preference1 - markets worldwide* Volume share2 – comparison with BP and Total
success is built
on technology, Consumer
brand and Exxon

Mobil
people BP
Commercial
20%
16% 14%
Resilient Industrial
Sectors
Passenger Car Motor Oils

Shell Peer Group
Exxon
Mobil
1 in 9 engine or 36%
equipment, world- BP
wide, is protected 21%
by Shell lubricants 10%
Heavy Duty Engine Oils
1 – Source: Kantar Millward Brown (H1 ’17) – PCMO (22K respondents), HDEO (9K respondents) *- PCMO: USA, China, India, Russia, Brazil, Germany, Indonesia, Canada, Thailand, Egypt
and Malaysia; HDEO: USA, China, India, Russia, Brazil, Thailand, Egypt, Pakistan, Vietnam, Argentina and Colombia. 2 – Source: Kline & Company (2017)
Shell lubricants PCMO market: brand preference in China1 Supply chain footprint in China
Tianjin
is the IOC 40 NGG
market leader Zhapu
in China
MOBIL North
20 TsingYi
CASTROL East
West
Preference
SINOPEC Operation Unit CN, HK
South
Zhuhai
Lube Oil Plant 5
Grease Plant 1
TOTAL Distributor Center 5
0
0 Awareness 20 40 60 80 GTL Terminal 1
Flavex Process 1
Oil Terminal
 Exceptional local team
 Digital leadership
Shell market share2

in China in 2016:  Retail integration
8,5%
1 – Source: Millward Brown (2017 Q3) Motorist Loyalty Tracker 中国市场品牌调研- 6288 respondents annually in 33 cities in China
2 – Source: Kline & Company (2017)
Our unique
DEEP TECHNICAL
EXPERTS,
global customers
footprint can
grow further
Passenger Car Motor Oil1

Premium volume development
10
7 out of 10 largest car
manufacturers choose 5 Base oil manufacturing plants
Shell lubricants Lubricants & grease blending plants
Customer operations
0
R&D Centre
Market Shell
1 – Source: Kline & Company – Passenger Car Motor Oils with a viscosity of 0W and 5W, Compound Annual Growth Rate (2013-2017)

2017 2025
Strengthening
our position as +24%
a world class Industrial LubeChat
B2B business Production1
+25%
Fitcar
ICE Vehicles2
+36%
Skypad
Aircrafts3
+27% AccuPort
Ship capacity4
1 – Source: Oxford Economics (2018); 2 Source: Shell analysis based on aggressive EV scenario; 3 – Source: Shell analysis; 4 – Source: Shell analysis – Ship capacity - Dead weight tonnage

Outlook to Earnings: global commercial
2020 is very $ billion

3
ROACE 26% >25% >25%
strong with New revenues
exceptional Accelerate digital and services
growth
returns 2
Resilient sectors
$1 billion investment in
technology
1
New customers
Grow market share in China,
India, Indonesia, Mexico and
Russia 0
2013 2017 Growth levers 2020 Growth levers 2025
+>$1 billion
2025 vs 2017
earnings growth
Grow Base
2x market growth in premium
Expand airport presence
1M+ 150 #1
B2B customers Markets In lubricants
Earnings and ROACE on CCS basis, excluding identified items

Retail and Earnings: retail + global commercial
 Strongest business
global performance in peer
$ billion
ROACE 25% >20% >20%
commercial are group
exceptional  Attractive industries, >7%

6
superior returns
performers  Resilient in the 2020s
CAGR
0
2013 2017 Growth 2020 Growth 2025
Global Commercial Retail
+>$2.5 billion
2025 vs 2017 40M+ 150+ #1
earnings growth Customers/day Markets In the industry
Earnings and ROACE on CCS basis, excluding identified items; CAGR: compound annual growth rate

Refining & Trading
Lori Ryerkerk & Andrew Smith
EVP Manufacturing & EVP Trading & Supply
Royal Dutch Shell

Refining & Trading:
Fully integrated and highly dynamic global system

Fredericia
Scotford FEP/Stanlow (JV)
MOSCOW
CALGARY LONDON ROTTERDAM
Chemicals, Puget Sound

Sarnia
Pernis
Moerdijk
Rheinland
Schwedt (JV)
Refining & Trading Miro (JV) BEIJING

Martinez Pennsylvania
HOUSTON
Deer Park (JV) Mobile
Portfolio
Karachi
Geismar Norco Al Jubail (JV)
Convent DUBAI Nanhai (JV)
SHELL
WEST
Tabangao (JV)
SINGAPORE
Pulau Bukom
Legend Jurong Island
Refinery
Chemical plant
Chemicals & integrated refining site

Durban
Crude & product trading hub
XYZ Trading offices Buenos Aires

Chemical Site under construction
Consolidated footprint Increased refining complexity1

Refinery capacity in thousand barrels per day (100%) Shell refining portfolio
average refining complexity

600 Competitor refining portfolio
Bubble size represents total
Retaining competitive, 500
equity capacity.
2.9 million barrels per day
integrated and more 400
2017
complex sites in 300 2001
trading hubs and 200
advantaged markets 100
0
100 200 300 400
Retained site 2017 Exits 2005–17 average refinery capacity (thousand barrels per day)
1 - Company analysis of external data.

Chemicals,
Refining & Trading Oil Products
Integration “Make-Buy-Blend”
Product blending
Best selection of
& supply
purchased and Marketing
produced components
Highest value
Refining Crude and Trading
feedstock, equity & supply
and non-equity
Integration and Crude &

flexibility release feedstock Highest-margin feedstocks from
refinery or market
the value of supply optimisation Chemicals
chain optionality Oil-chemicals manufacturing
Integration

Chemicals,
Refining & Trading Shell terminals
US Gulf Coast Shell refineries
Northeast
& Northeast volume growth
+30 thousand
barrels per day
Hurricane Harvey
response business
Significant and continuity for
sustainable value customers
uplift created Norco
by integrated Convent
re-optimisation
of the eastern Operating Convent
US value chain FCCU for another “Make-Buy-Blend”
turnaround cycle optimisation and
+$150-200 million exports
per annum margin

Past Present Future
Norco manufacturing
 Motiva streams managed  Integration in Shell’s portfolio Short term
complex at arm’s length  Catalyst reformulation to
Refining &  Under-optimised assets
 Integrated economics drive real
time optimisation of streams
maximise utilization of integrated
value chain
Chemicals
Long term
integration  Capital projects to increase
integrated profitability
Norco integrated Refining & Chemicals value – gross margin

$ million per annum
100
80
Optimizing Refining
and Chemicals as an 60
integrated value chain
expected to unlock 40
>$70 million per
annum additional 20
margin
0
Past Present Short Term Long Term

Process safety & environment – Downstream Personal safety – Downstream
Delivering # Tier 1 & 2 process safety incidents TRCF/million working hours
operational
180
160
2
excellence 140
120
100
80 1
60
40
20
0 0
2011 2012 2013 2014 2015 2016 2017
Tier 1 Tier 2 TRCF/million working hours TRCF trendline
Asset utilisation – Refining Unit cost – Refining & Trading

% utilisation Index (2013 =100)
81
100
80
79
78
Improving safety, 75
77
reliability and cost
76
efficiency in our
operations 75
74 50
2010 2011 2012 2013 2014 2015 2016 2017 2013 2017 2020E
Asset utlisation Asset utilisation - 4-year average

Margin Refining & Trading – Breakeven margin
resilience and $ per barrel

10  Delivering more resilient and
stability 9
less volatile margin from a
high graded and integrated
8
portfolio
7
6
2011-2013 2014-2017 2020E
Integrated indicative margin

$ per barrel
14  Forward view based on

12 average of the last ten years,
10
covers most of typical
8
6 volatility: $10.40 per barrel
4
2  Rule-of-thumb: $ per barrel
0 margin = +/- ~$600 million
earnings
Actual margin 2008-2017 Average margin Indicative margin

Building Investing in refinery resilience Strengthening the core
resilience for  Bottom of barrel upgrading

the future Growth
 Crude flexibility
Capital investment:
 Logistics and integration
$ 2-3 billion per year
Non- and little (2018-2020 average)  Low sulphur fuel oil (IMO) preparedness
discretionary
spend
New solutions Low carbon solutions
Biofuels
 Energy efficiency initiatives Blending
Shell refineries
Strengthening the core and businesses
 Green energy
assets while building
capability through  Cogeneration
technology advances Asset Low Renewable
Carbon Carbon Power
to adapt to a changing Offsets Solutions Offerings
energy world
3rd Party offerings,

new value chains
Nature
Based
Solutions
Chemicals
Graham van’t Hoff
EVP Chemicals
Royal Dutch Shell

Positioning in the competitive landscape
Growth priority Base Chemicals/ Performance Solutions
Chemicals Intermediates
CONSUMERS
FEEDSTOCKS
Pure Chemical
Add Differentiation
Companies
 Top 10 producer
of Ethylene
 Top 5 producer  Access to advantaged feedstock  Customised solutions
of Propylene  Process technologies  Product-materials innovation
 Top 5 producer  Big integrated projects  Production close to markets
of Benzene
 Large scale  Medium scale projects

Chemicals
Strategy Advantaged Strong product & Excellence every day
First class footprint
feedstock customer portfolio & HSSE
Access advantaged feedstock Monetize with competitive advantage
 A highly profitable
hydrocarbon
upgrader Technology

Chemicals
Technology
leader
 OMEGA (MEG - Polyesters)
Technology focus  SMPO (Styrene Monomer – Insulation / Polyols - Foams)

and operating  SHOP (Detergents)
expertise create  DPC/PC (Diphenyl carbonate – Phone casings)
winning position  Technology licensing and catalyst sales combine to create strong long-term value
Shell Chemicals proprietary technologies leverage key skills and experience to create
market leading positions

Chemicals Earnings – Chemicals Competitive performance – ROACE 4Q rolling
Financial and $ billion $/barrel %

3 120 30
competitive Average: $107
performance 25
2 80 20
15
Average: $50
1 40 10
Ensure robust 0 0 0
performance under 2010 2011 2012 2013 2014 2015 2016 2017 Q4 Q4 Q4 Q4 Q4 Q4
different market 2012 2013 2014 2015 2016 2017
conditions and grow Earnings Average Brent oil price (RHS) Shell DOW/UCC
base business ExxonMobil LBI
Average earnings 2010 - 2016
Earnings and ROACE on CCS basis, excluding identified items; Shell ROACE calculations for 2012 has been restated for the impact of IAS 19; source: company reports, Shell analysis

Chemicals
$500 million per annum
Competitiveness
Unit margin
Volume growth
Organisational,
operational and Costs
cultural
improvements
deliver sustainable
annual earnings
increases Operational excellence

Under construction
Chemicals
425,000 metric tonnes Remains on track to begin
Growth
 
additional Alpha Olefins commercial production in 2H
capacity 2018
projects  Geismar site will become
Geismar, USA
largest AO facility in the world
 New liquids cracker and  Start-up of cracker and new

derivatives units downstream units in 1H 2018
 Capacity: ~1.2 million metric  SMPO/POD on-track for
tonnes ethylene per annum 2019/2020 start-up
Nanhai, China  50/50 JV CNOOC
 Greenfield FID 2016  Main construction phase started

in late 2017
 Capacity: ~1.5 million metric
tonnes ethylene per annum and
polyethylene derivatives
Pennsylvania, USA
Feedstock mix
2025
Gas
2006 2010 2010 2016+
Liquid
Nanhai USGC Singapore China
go-light + USA
strategy

Chemicals  Improve base business
Organic growth  Expand current base portfolio
 Adding to portfolio – growth
Earnings + ROACE
$ billion %
4 20
Targets aspiration 15
per year mid-’20s:

 Earnings: 2 10
~$3.5 – 4 billion
 Cash flow: 5
~$5 – 6 billion
 Base capex: 0 0
2009 2010 2011 2012 2013 2014 2015 2016 2017 ~2025
~$1 – $1.5 billion
Earnings ROACE (RHS)
Earnings and ROACE on CCS basis, excluding identified items; Shell ROACE calculations for 2012 has been restated for the impact of IAS 19

John Abbott
Downstream Director
Royal Dutch Shell

Downstream
Delivering a Downstream:
world-class Thrive in
the energy  Customer-centric
investment transition
case
 Uniquely integrated
World-class  Competitive
inv estment case
 Resilient
Strong
 Leading through the energy transition
license
to operate
 Delivering profitable growth

Questions &
Answers
John Abbott Huibert Vigeveno Istvan Kapitany Lori Ryerkerk

Downstream Director EVP Global Commercial EVP Retail EVP Manufacturing
Andrew Smith Graham van’t Hoff Bjorn Fermin Gerard Penning

EVP Trading & Supply EVP Chemicals EVP Downstream EVP Downstream
Finance Human Resources


Downstream Open House: Delivering A World-Class Investment Case

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Downstream Open House

Delivering a world-class investment case

Royal Dutch Shell plc

Royal Dutch Shell March 21, 2018

Royal Dutch Shell March 21, 2018

Royal Dutch Shell March 21, 2018 3

Thrive in  Increasing portfolio resilience, leveraging technology, digitalisation and

 Transformational and profitable growth

 Leading through the Energy Transition

Royal Dutch Shell March 21, 2018 4

Organic FCF ~15 25-30

* 2019 – 21: 2016 RT $60 per barrel, mid-cycle Downstream

Royal Dutch Shell March 21, 2018 5

* Not present today

Royal Dutch Shell March 21, 2018 6

Royal Dutch Shell March 21, 2018 7

Business Million barrels per day

Shell ‘Oceans’ scenario Shell ‘Mountains’ scenario N. America S. America Europe

 Passenger vehicles consumption represents  Chemicals enabling CO2 reduction

Royal Dutch Shell March 21, 2018 8

Business Million vehicles/year Million vehicles

 An aggressive EV scenario – not a forecast: one example

Royal Dutch Shell March 21, 2018 9

Marketing Refining & Trading Chemicals

Royal Dutch Shell March 21, 2018 10

 Global #1 Brand  Large, complex integrated sites  Advantaged and flexible

Driven through new business models, customer connectivity,

Royal Dutch Shell March 21, 2018 11

operations # Tier 1 & 2 Process Safety Incidents

Refining & Trading Marketing Refining - Asset utilisation

Asset utilisation Asset utilisation - 4-year average

Royal Dutch Shell March 21, 2018 12

Earnings Earnings by sub-segment + ROACE

Royal Dutch Shell March 21, 2018 13

Shell Peer group Shell Peer group range

Chemicals – ROACE Global brand preference

Shell Peer group Shell Peer group

and resilience” Earnings per region % of feedstock

Marketing – earnings growth to 2025 Refining & Trading – Breakeven margin

Earnings on CCS basis, excluding identified items Retail Global commercial

Royal Dutch Shell March 21, 2018 15

energy Lighter vehicles, Digitalisaton Conventional and advanced

Royal Dutch Shell March 21, 2018 16

Technology Digitising the core New business models

Royal Dutch Shell March 21, 2018 17

Thrive in  Increasing portfolio resilience, leveraging technology, digitalisation and

 Transformational and profitable growth

 Leading through the Energy Transition

Royal Dutch Shell March 21, 2018 18

Royal Dutch Shell March 21, 2018

most profitable $ billion

Shell Peer group Others

 Customers first Marketing Global

Total Aslam Khoso – Global Service Champion Winner 2016

Shell Reference industry IOCs

grown strongly $ billion ROACE

1 50% Convenience retail

 Differentiated Programmes Yield on cost Income per site

 Simplification & Offshoring

2017 vs 2013 Selected retailers1

Royal Dutch Shell March 21, 2018 22

success is built $ billion

Royal Dutch Shell March 21, 2018 23