RECOMMENDED COMBINATION WITH BG GROUP 8 APRIL 2015 ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 8 April, 2015 1
JORMA OLLILA CHAIRMAN ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 8 April, 2015 3
ANDREW GOULD CHAIRMAN BG GROUP PLC Copyright of Royal Dutch Shell plc 8 April, 2015 4
BEN VAN BEURDEN CHIEF EXECUTIVE OFFICER ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 8 April, 2015 5
SHELL + BG: A COMPELLING COMBINATION Accelerates deep water + LNG strategy Accretive to earnings and cash flow per share Complementary portfolios: synergy opportunity Enhanced portfolio: springboard to high-grade Shell + BG…
SUMMARY TERMS AND METRICS 0.4454 Shell B shares and 383p in cash per BG share1 Represents a value per BG ordinary share of 1350p, a premium of 52%2 Values BG equity at 47.0 billion3 BC-10, Brazil BG shareholders to own 19% of…
SHELL + BG UPSTREAM COMBINATION North Sea Kazakhstan Atlantic basin LNG Australia LNG Brazil deep water Shell BG Complementary fit Main BG office locations Key uplift Enhanced position in our growth priorities:…
BG A STRONG STRATEGIC FIT WITH SHELL PORTFOLIO Production BG impact million boe/d Key BG producing assets Longer term: Kazakhstan Kazakhstan: Karachaganak adds to growth potential 2% Lower 48 North America shales bolt-on FUTURE…
SHELL + INTEGRATED GAS A leading global player Shell integrated gas performance billion QG4 Sakhalin Pluto LNG North Rankin Repsol LNG Strong returns; growing business Pearl GTL Core strength for Shell Earnings + 470%…
INTEGRATED GAS SHELL + BG NEW GROWTH IN IOC LEADERSHIP PORTFOLIO Combi- 2014* Shell BG nation Equity LNG UK liquefaction 26 7 33 Spain Sakhalin capacity (mtpa) Sabine Pass Cove Point Elba QG-4 Lake Charles LNG delivered Baja…
LNG: NORTH AMERICA AND ATLANTIC BASIN Options: North America North America LNG in Canada LNG Canada + W. Canada gas Prince Rupert Gulf Coast export options Upstream gas Appalachia Upstream gas Shell BG Overlap Haynesville…
LNG: AUSTRALIA AND TANZANIA Options: Australia Queensland Australia - Queensland Prelude Browse Cash flow growth from QCLNG Gorgon BG Bowen Shell Bowen Further growth potential QCLNG Arrow Energy BG: 8 mtpa: QCLNG ramping up…
SHELL + DEEP WATER DEEPENING OF COMPETITIVE POSITION + CAPABILITY Decades track record in project delivery High returns; growing portfolio Cost leadership + profitable CFFO in billion Shell deep water Production 390 kboe/d;…
SHELL IN BRAZIL: STRONG PRESENCE ACROSS THE VALUE CHAIN ACTIVE IN BRAZIL 100 YEARS Downstream: a leading + Deep water: a leading player Libra JV: 2013+ established brand 1998+ 1 sugar-ethanol player 2013+ Bijupir-Salema: 2003 812…
DEEP-WATER BRAZIL SHELL + BG IOC LEADERSHIP IN WORLD-CLASS OIL PROVINCE Shell position Production BC-10 thousand boe per day Bijupir-Salema Shell: 3 exploration Shell BG Combination /appraisal wells drilled 8-12 billion…
UPSTREAM ENGINE: NEW MOMENTUM Managed decline of legacy positions Upstream engine production (2014) thousand boe per day BG* Shell (kboe/d) (kboe/d) UK 105 90 overlap Norway 28** 160 Bolivia 48 - India 18 - new production…
ENLARGED UPSTREAM PORTFOLIO SPRINGBOARD FOR FURTHER PORTFOLIO HIGH-GRADING Company-wide drive to improve performance Impact of BG combination Shell: 2014 2015 YTD delivery New mix: profitable, ramped-up end of decade Grow 160 kboe/d…
SIMON HENRY CHIEF FINANCIAL OFFICER ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 8 April, 2015 19
RECAP OF TERMS AND KEY CONDITIONS 0.4454 Shell B shares and 383p in cash per BG share* Equity increase: 1,532 million new B shares* Election option for A shares BC-10, Brazil Mix and match election between cash and shares…
SHELL + BG KEY METRICS 2014 Proved reserves Production million boe million boe/d +20% +25% Shell/ Shell/ BG* BG ROACE Cash flow from operations % billion +15% Shell Combination Shell/ BG Shell BG other majors *…
FINANCIAL FRAMEWORK AND PRIORITIES Revised priorities for cash Grow cash flow from operations + free cash flow 1. Debt reduction Credit rating a priority: debt pay-down 2. Dividends Dividend policy 3. Buybacks + capital…
GROW CASH FLOW + FREE CASH FLOW Synergies Asset sales Capital Growth investment 2.5 billion in 30 billion Reduce organic LNG + deep water 2018* 2016-2018…
SYNERGIES + EXPLORATION SPEND REDUCTION: SHELL + BG Corporate, administrative, Operating costs savings SG&A organization and IT operational Complementary presence in 15 countries efficiencies Combining Shell + BG capabilities…
STEP UP ASSET SALES Asset sales Increased asset sales: 30 billion 2016-2018 billion Divestment from combined portfolio Opportunity to reshape the company Shell Combination Copyright of Royal Dutch Shell plc 8 April, 2015…
CONTINUE TO MODERATE ORGANIC CAPITAL INVESTMENT Capital investment Reducing spending 2013+ billion Rich opportunity funnel + growth spend Deferrals, cancellations, divestments Supply chain opportunities Expecting < 40…
DIVIDEND + BUYBACK POTENTIAL Shell dividends Dividend policy unchanged billion Track record Expected dividend 2015 1.88/share 2016 at least 1.88/share Scrip dividend expected to be withdrawn 2017 Dividends announced Shell…
EXPECTED TIMELINE Early 16: Conclude transaction following regulatory + shareholder approvals 2016: Consolidate BG and Shell Launch 30 billion asset sales + 2.5 billion synergies programme Prioritize debt pay-down 2016+…
BEN VAN BEURDEN CHIEF EXECUTIVE OFFICER ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 8 April, 2015 30
SHELL + BG: A COMPELLING COMBINATION Accelerates deep water + LNG strategy Accretive to earnings and cash flow per share Complementary portfolios: synergy opportunity Enhanced portfolio: springboard to high-grade Shell + BG…
QUESTIONS & ANSWERS COMBINATION WITH BG GROUP Copyright of Royal Dutch Shell plc 8 April, 2015 33
RECOMMENDED COMBINATION WITH BG GROUP 8 APRIL 2015 ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 8 April, 2015 35
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