Stichting Shell Pensioenfonds mei 2010VERTROUWELIJK

Shell Pension Fund Netherlands

19th May 2010

Relationship: Employer - Employees – Pension Fund

Stichting Shell Pensioenfonds

Employer / admitted companies

StichtingShell Pensioenfonds

Employee

Pension agreement in (collective) employment contractExecution agreement

Trust deed / Regulations

Stichting Shell Pensioenfonds 3MEI 2010VERTROUWELIJK

Pension Fund organization

Shell Pension Fund Foundation (SSPF)Pension arrangements of Group companies in the NetherlandsBoard of AdministratorsParticipants’ Council

Shell Pension Fund Management (SPN) - 20 staffSPN has been appointed as Director, administers the pension arrangements and advises the board of SSPF and the employer Supervisory Board

Shell Asset Management Company (SAMCo) - 120 staff SAMCo has been appointed as the asset manager for SSPFSupervisory Board

Stichting Shell Pensioenfonds 4MEI 2010VERTROUWELIJK

SSPF Board of administrators (BoA)

Parity representation of employees and employersFour representatives of the member companies Four representatives of the employeesMembers BoA appointed by SPNV (employee representatives on recommendation of the Central Staff Council)The BoA shall address the interests of all Pension Fund members and all other interested parties and ensure that they can feel represented in a balanced manner.

Stichting Shell Pensioenfonds 5MEI 2010VERTROUWELIJK

Participants Council (PC)

The PC advises the BoA on important matters with regard to the Fund, either on request or on their own initiative.Twelve members, appointed by Shell Petroleum NVRepresentatives of fund members in active service are nominated by the Central Staff Council of Shell in the NetherlandsRepresentatives of retired fund members (including fund members with an early deferred pension) are nominated by the Shell Pensioners Club (VOEKS)Composition as per 1/5/2007: 4 active participants, 8 pensioners

Stichting Shell Pensioenfonds 6MEI 2010VERTROUWELIJK

Additional governance requirements from 1st January 2008

Based on principles of good Pension Fund Governance agreed between social partners and the pensions sector Transparency and accountability key issues2 additional bodies were instituted: - Tripartite Accountability council: employees, employer and pensioners - Internal Supervisory committee: independent experts

Stichting Shell Pensioenfonds 7MEI 2010VERTROUWELIJK

SSPF key data

Participantsactive 11.226(15% outside Netherlands)deferred 7.010(13% outside Netherlands)pensioners 19.300( 7% outside Netherlands)

Admitted companiesNetherlands 23Abroad 170 in 57 countries

Pension schemesShell 12Billiton 8

Liabilities € 12,500 billionAssets € 15,400 billion

Data ultimo 2009

Stichting Shell Pensioenfonds 8MEI 2010VERTROUWELIJK

Funding principles and asset management

Based on Dutch Solvency regime High commitment from Employer/sponsorSponsor provides high level Pension fund management guidelines and risk and funding targetsGuarantee from sponsor in case of insolvencyAdvanced ALM model and strategic asset allocation High equity ratio and international diversification in portfolio In company professional asset management

Stichting Shell Pensioenfonds 9MEI 2010VERTROUWELIJK

Pension as important benefit

Shell differentiates pay for performance, ‘benefits’ and so called ‘facilities’ Shell focuses more and more on reward for achievement (performance based pay)‘Benefits’ are part of Employee Value Propostion: “to recruit and retain staff”. Retirement benefits are included in this EVP.‘Facilities’ provide the employee comfort, but are not included in the employee’s decision on joining, staying or leaving the company.

Stichting Shell Pensioenfonds 10MEI 2010VERTROUWELIJK

The Shell scheme in brief

Target retirement age 65Actual retirement age: choice of any age between 55 and 65 and between 65 and 70 with employer consent Old age pension based on final salaryPartner pension is 70% of old age pensionOrphan pension is 14% of total partner pension Incapacity pension: percentage of salary Flexibility in benefitsBenefit indexation ambition conditional on financial condition fundEmployee contribution: minimum 2% of salary, 8% on salary above € 75.000Employer contribution for 2007: 31,6 % of total salary bill

Stichting Shell Pensioenfonds 11MEI 2010VERTROUWELIJK

Old age pension (OAP)

Pension formula: OAP = pension years x pension base x accrual percentageAccrual percentage:1.1 % of pension base up to € 28,5062 .0 % of pension base between € 28,506 and € 63,6591,75 % of pension base between € 63,659 and € 106,5781,5 % of pension base above € 106,578

Stichting Shell Pensioenfonds 12MEI 2010VERTROUWELIJK

Partner pension

Life long partner pension: 70% of old age pension In case of death in service, projected years between death and age 65 are included in calculationApplies to:- married partners- legally registered partners - cohabitating partners registered with the pension fund Supplementary partner pension for partners under age 65 of 1.6% of € 28,506 for each pension accrual year: compensation for not qualifying for State widow benefit and not yet receiving State old age benefit:

Stichting Shell Pensioenfonds 13MEI 2010VERTROUWELIJK

Orphan pension

Orphan pension: 14% of total partner pensionChildren under age 18 qualify If in full time education up to age 24If both parents have died: orphans pension is doubled

Stichting Shell Pensioenfonds 14MEI 2010VERTROUWELIJK

Incapacity pension

Granted if earning capacity is less than 20% Assessment is made by medical doctor appointed by the Board of AdministratorsBenefit: 100% of salary up to € 63,659

70% of salary above € 63,659 Benefit is paid until reaching age 65Pension accrual continues At reaching age 65 old age pension is based on number of years in active service + number of years in receipt of incapacity pension