analyst webcast presentation royal dutch shell third quarter 2012 results

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Copyright of Royal Dutch Shell plc 1 November, 2012 1 THIRD QUARTER 2012 RESULTS THE HAGUE NOVEMBER 1, 2012 ROYAL DUTCH SHELL PLC

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Simon Henry, Chief Financial Officer of Royal Dutch Shell plc hosted a webcast for analysts of the third quarter 2012 results on Thursday November 1, 2012.

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Page 1: Analyst webcast presentation Royal Dutch Shell third quarter 2012 results

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THIRD QUARTER 2012 RESULTS

THE HAGUE NOVEMBER 1, 2012

ROYAL DUTCH SHELL PLC

Page 2: Analyst webcast presentation Royal Dutch Shell third quarter 2012 results

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THIRD QUARTER 2012 RESULTS

SIMON HENRY CHIEF FINANCIAL OFFICER

ROYAL DUTCH SHELL PLC

Page 3: Analyst webcast presentation Royal Dutch Shell third quarter 2012 results

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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 23% 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 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 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, 2011 (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, 1 November 2012. 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. We use certain terms in this presentation, such as discovery potential, that the United States Securities and Exchange Commission (SEC) 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.

DEFINITIONS AND CAUTIONARY NOTE

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Performance focus Q3 earnings $6.6 billion; EPS -6 % ~ $6 billion asset sales year-to-date Growth delivery New projects ramping up 3 new Final Investment Decisions New growth options Exploration + appraisal success Selective acquisitions + new acreage

SUMMARY

GROWTH DELIVERY

MATURE NEW OPTIONS

CONTINUOUS IMPROVEMENT

PERFORMANCE FOCUS

Page 5: Analyst webcast presentation Royal Dutch Shell third quarter 2012 results

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Q311 Q411 Q112 Q212 Q312 -2

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Q311 Q411 Q112 Q212 Q312 -200

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Q311 Q411 Q112 Q212 Q312

SHELL OIL & GAS REALISATIONS INDUSTRY REFINING MARGINS INDUSTRY CHEMICALS MARGINS

$/barrel $/barrel $/tonne $/mscf

Oil Gas (RHS)

US West Coast US Gulf Coast coking Rotterdam complex Singapore

US ethane Western Europe naphtha NE/SE Asia naphtha

PRICES & MARGINS

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Q3 2011 TO Q3 2012

$ billion

Earnings CCS basis, earnings and EPS excluding identified items

Q3 2012 FINANCIAL HIGHLIGHTS

Q3 2011 Q3 2012

UPSTREAM 5.4 4.9

DOWNSTREAM (CCS) 1.8 1.7

BUSINESS SEGMENTS TOTAL 7.2 6.6

CORPORATE & MINORITIES -0.2 0.0

CCS NET EARNINGS 7.0 6.6

CCS EARNINGS, $ PER SHARE 1.12 1.05

CASH FROM OPERATIONS 11.6 9.5

SHARE BUY BACKS 0.8 0.1

DIVIDENDS 2.6 2.8

DIVIDEND, $ PER SHARE 0.42 0.43

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Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 0

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Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012

EARNINGS

$ billion

Earnings excluding identified items

OIL AND GAS PRODUCTION

million boe/day million tonnes

Other Upstream Integrated gas

Oil Gas LNG sales (RHS)

UPSTREAM PERFORMANCE

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Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 3

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Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012

EARNINGS

$ billion

Earnings excluding identified items

AVAILABILITY AND SALES VOLUMES

% availability volume

Oil Products Chemicals

Refinery availability Chemicals availability Oil Product sales (mln bbl/d) Chemicals sales (mln tonnes)

DOWNSTREAM PERFORMANCE

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TEMPA ROSSA FID Italy onshore oil 45 kboed Shell 25%

Upstream Downstream

DELIVERING GROWTH PROGRESS H2 2012

CHANGBEI PSC amendment Expansion of onshore

gas

QATAR CHEMICALS FEED for ethylene

cracker and 1.5 mtpa MEG

FRAM FID UKCS FPSO development 35 kboed Shell 32% (operator)

QUEST CCS FID >1 mtpa carbon

capture + storage at Scotford

Appomattox SW

FID FEED

EAGLE FORD 1st oil &gas processing

facility on-stream (23 kboed capacity)

Development continuing

Exploration/Appraisal success

NEW GAS DISCOVERIES MALAYSIA + AUSTRALIA Tukau Timur Deep Satyr-2/4

CRUX CONSOLIDATION AGREEMENT JV Nexus Energy, Shell,

Osaka gas Shell 80% (operator)

3 FIDs, 1 PROJECT INTO FEED 2 DISCOVERIES; 1 APPRAISAL

Page 10: Analyst webcast presentation Royal Dutch Shell third quarter 2012 results

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GASNOR LNG for transport

GABON DEEPWATER Exploration acreage 25% dilution to CNOOC Shell 75%

Acquisition New acreage

REFRESHING THE PORTFOLIO: A&D + NEW ACREAGE ACQUISITIONS + DIVESTMENTS H2 2012

BROWSE Pre-FID LNG opportunity Increased Shell stake $0.5 bn + asset swap

PERMIAN BASIN $1.9 billion acquisition 618,000 acres LRS 26 kboed production Growth potential

DRAUGEN + BERYL North Sea heartland $0.8 billion acquisition Increased Shell stakes

Divestment/Dilution

Holstein exit (5 kboed) NIGERIA SPDC ONSHORE JV OML40/34 exit $0.5 billion divestment 20 kboed production

CHINA Yinggehai

offshore exploration

UKRAINE new exploration

YEAR-TO-DATE $6 BILLION ACQUISITIONS, $6 BILLION DIVESTMENTS

Page 11: Analyst webcast presentation Royal Dutch Shell third quarter 2012 results

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2009 2010 2011 2012 Q3

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BUSINESS 12 MONTH CASH PERFORMANCE $ billion

Cash flow from Operations excl. net movements in working capital Asset sales Acquisitions

NET DEBT AND GEARING $ billion

Gearing (LHS) Net Debt (RHS)

GROUP 12 MONTHS CASH PERFORMANCE $ billion

Capex (excl. acquisitions) + Equity Acc. Investments Dividend Buy-backs

FINANCIAL FRAMEWORK

Upstream Downstream

Sources

Uses

Sources

Sources Uses

Uses

Gearing range

CASH GENERATION + POTENTIAL

PRUDENT BALANCE SHEET

SELECTIVE A&D

Page 12: Analyst webcast presentation Royal Dutch Shell third quarter 2012 results

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Performance focus Q3 earnings $6.6 billion; EPS -6 % ~ $6 billion asset sales year-to-date Growth delivery New projects ramping up 3 new Final Investment Decisions New growth options Exploration + appraisal success Selective acquisitions + new acreage

SUMMARY

GROWTH DELIVERY

MATURE NEW OPTIONS

CONTINUOUS IMPROVEMENT

PERFORMANCE FOCUS

Page 13: Analyst webcast presentation Royal Dutch Shell third quarter 2012 results

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QUESTIONS & ANSWERS THIRD QUARTER 2012 RESULTS

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THIRD QUARTER 2012 RESULTS

THE HAGUE NOVEMBER 1, 2012

ROYAL DUTCH SHELL PLC