ROYAL DUTCH SHELL PLC UPDATES ON STRATEGY TO IMPROVE PERFORMANCE AND TO GROW
The Hague, 16th March 2010
•	Shell today said it was entering a new period of growth, and outlined plans to
sharpen up performance and reduce costs.
•	Upstream production is expected to reach 3.5 million barrels of oil equivalent
per day (mboe/d) in 2012, an increase of 11% from 2009.
•	In addition, the company is assessing over 35 new projects from some 8 billion
barrels of oil equivalent resources (boe), which should underpin Upstream growth
to 2020.
•	Downstream continues to focus on profitability, with plans to exit 15% of
refining capacity and 35% of retail markets, and growth investment to enhance
the quality of manufacturing and marketing portfolios.
•	As new projects come on stream, the company expects cash flow from operations
will increase by around 50% from 2009 to 2012 in a $60/bbl oil price world, and
by over 80% with $80/bbl oil prices.

CEO Peter Voser commented: "These are exciting times for Shell. We are poised to
deliver a new wave of financial and production growth. We are making substantial
investments in new projects to drive Shell’s financial performance going
forward. Shell should be in a surplus cash flow position in 2012, after capital
investment and dividend payments, assuming $60 oil prices and a more normal
environment for natural gas prices and downstream.”
Voser continued: "We are moving into a delivery window across the next five
years, and beyond that, we have a tremendous opportunity set for the 2015-2020
timeframe. We will put the emphasis on financial performance - cash generation
and returns.
Upstream, we have built up strong foundations in activities like gas-to-liquids
(GTL), oil sands and liquefied natural gas (LNG). Looking out to 2020, I expect
Shell’s exploration to underpin new upstream growth, especially in North America
and Australia, with additional barrels from development-led projects.
Downstream, we are making substantial investments in new refining and
petrochemicals capacity. Once these projects are on stream, I expect the
downstream growth emphasis will switch to further strengthening our marketing
for the next several years."

Peter Voser mapped out three distinct layers for Shell’s strategy development:
nearer-term performance focus, medium-term growth delivery, and maturing next
generation project options.

PERFORMANCE FOCUS
•	Continuous improvements in operating performance, with an emphasis on safety,
asset performance and operating costs, including firm plans for $1 billion of
cost savings in 2010, and staff reduction of some 2,000 positions by end-2011.
•	Asset sales of $1-3 billion/year as Shell exits from non-core positions across
the company.
•	New initiatives expected to improve on Shell’s industry-leading Downstream by
focusing on the most profitable positions and growth potential. Shell has plans
to exit from 15% of its world-wide refining capacity, 35% of the company’s
current retail markets, and is taking steps to further improve its chemicals
assets.

GROWTH DELIVERY
•	Shell has some 11 billion boe of new oil & gas resources under construction,
and selective downstream growth opportunities. This is one of the most ambitious
investment programmes in the industry.
•	Net capital investment is expected to be $25-$27 billion/year for 2011-14,
with up to $3 billion/year of asset sales, and $25-$30 billion/year of organic
investment. Annual spending will be driven by the timing of investment decisions
and the near-term macro outlook as Shell invests for long-term growth.
•	Cash flow from operations excluding net working capital movements was $24
billion in 2009. Shell expects cash flow to grow by around 50% from 2009-2012
assuming a $60 oil price and a more normal environment for natural gas prices
and downstream margins. In an $80 world, 2012 cash flow should be at least 80%
higher than 2009 levels.
•	Downstream, Shell is adding new chemicals capacity in Singapore and refining
capacity in the US, and making selective growth investment in marketing.
•	Oil & gas production is expected to average 3.5 million boe/d in 2012,
compared to 3.15 million boe/d in 2009, an increase of 11%, in line with
previous guidance of 2-3% average annual growth rates, and with confidence in
further growth beyond 2012.
•	As a result of its growth investment, Shell made proved reserves additions of
3.4 billion boe in 2009. With 2009 production of 1.2 billion boe, this resulted
in a Reserve Replacement Ratio of 288%, and a total proved reserves to
production ratio of ~12 years.

MATURING NEXT GENERATION PROJECT OPTIONS
•	Shell has built up a substantial portfolio of options for the next wave of
growth in the company. This portfolio has been designed to capture price upside,
and minimize the company’s exposure to industry challenges from cost inflation
and political risk.
•	Exploration delivered 2.4 billion boe of new resources in 2009, including new
barrels in the Gulf of Mexico, North America tight gas, and Australia. This was
the best year for exploration in a decade.
•	In North America, Shell has made great progress with tight gas, adding 8
trillion cubic feet equivalent (tcfe) of resources in 2009, bringing the
company’s total to 21 tcfe (3.7 billion boe). Tight gas production increased by
over 60% in 2009 to 110,000 boe/d, with potential for >400,000 boe/d from
today’s portfolio.
•	In the Gulf of Mexico, the company has established at least three new
production hubs, at Vito, Stones and in the Mars area, with >150,000 boe/d
production potential for Shell.
•	Australia should underpin Shell’s next tranche of LNG developments, within a
world-wide options set for a possible further 10 million tonnes per year (mtpa)
of capacity by 2020, which could take Shell’s total capacity to ~35 mtpa.
•	In Canada, we retain options for further heavy oil expansion, with the
nearer-term priority on improving operating efficiency and facilities
debottlenecking.
•	Shell’s pre-FID option set for fields that could come on stream by 2020 has
reached 8 billion boe of resources, with over 35 substantial new projects that
can sustain growth to 2020.

DIVIDEND
Shell has revisited its payout policy, in line with major competitors and market
trends. Shell aims to grow the dividend in US dollars through time in line with
its view of the underlying business earnings and cash flow of the group. In
addition, the company intends to introduce a scrip dividend option, subject to
approvals at the next AGM, so that investors can opt to receive new shares
rather than cash dividends. These changes will enhance both Shell’s financial
flexibility, and the potential for the dividend payout to be more closely linked
to Shell’s profitability. The dividend for Q1 2010 is expected to be
$0.42/share, and is expected to be unchanged from 2009 to 2010.

OUTLOOK
Commenting on the growth outlook, Voser said: “Our 2009 earnings were sharply
reduced by the recession, despite Shell's self-help programmes and $2 billion of
cost savings. Although oil companies have been cushioned from the recession by
OPEC's action on quotas and oil prices, Shell has been disadvantaged recently,
due to our higher exposure to refining and natural gas, where margins are
hard-wired to the economy. This has come in a period where our spending is at
historically-high levels, as we invest for medium-term growth.
Near-term pressures on downstream and gas margins remain. However, the
medium-term upstream fundamentals are robust, we expect oil to trade typically
in a $50-$90 range, and to trend to the upside. In natural gas, cleanest of all
fossil fuels, the medium term fundamentals are also attractive for Shell.
However, the global refining industry may be in over-supply for some time.
Shell's strategy is centred on strong operating performance and sustained
investment for organic growth. That strategy is robust, despite the difficult
economic environment. But the company had become too complicated and slower to
respond than we’d like.
So we are sharpening up.
The priorities are for a more competitive performance, for growth, and for
sharper delivery of strategy. We have more to do to drive out cost and improve
the operating performance in the company.”
Voser concluded: “We have come a long way in 2009, and I see tremendous
opportunities for Shell in the future.”

SUPPLEMENT: RESERVES UPDATE
In 2009 the United States Securities and Exchange Commission modernized their
oil and gas regulations.  Most significantly, the new rules allow synthetic
crude oil reserves to now be considered oil and gas reserves.  Previously
synthetic crude oil reserves were permitted to be disclosed only as proven
minable oil sands reserves.  In 2009 we had a record year in adding proved oil
and gas reserves.   Excluding previously disclosed proven minable oil sands
reserves, we added 3,420 million barrels of oil equivalent (boe) proved oil and
gas reserves in 2009.  With 2009 production of 1,187 million boe, our Reserve
Replacement Ratio (RRR) was 288%.
On an SEC basis, Shell added 4,417 million boe of proved oil and gas reserves
before production, of which 3,632 million boe comes from Shell subsidiaries and
785 million boe is associated with the Shell share of equity accounted
investments. Included in the 4,417 million boe is 1,630 million boe of synthetic
crude oil reserves. Last year, we had reported 997 million boe of proven minable
oil sands reserves as of December 31, 2008. As a result of the SEC rule changes
these proven minable oil sands reserves have been converted to synthetic crude
oil proved reserves and are included in the 1,630 million boe. Accordingly we
will no longer be reporting proven minable oil sands reserves. The increase of
4,417 million boe of proved oil and gas reserves also includes approximately 270
million boe associated with other SEC changes in proved reserves reporting.
Furthermore, for the first time we have included 599 million boe proved reserves
associated with future production that will be consumed in operations (for
example, as fuel gas). Finally, the total additions reflect a net positive
impact from commodity price changes of approximately 260 million boe proved
reserves.
Reserves additions in 2009 include additions from new fields in the Gorgon LNG
project in Australia, deepwater developments in the Gulf of Mexico (Perdido and
Auger), the BC-10 offshore project in Brazil and an extension to the Muskeg
River synthetic oil project in Canada.
Proved reserves additions were also made across the global Shell portfolio
including Nigeria, Netherlands, Qatar, Kazakhstan, China, Malaysia and Russia.
At end 2009, net proved reserves attributable to Shell shareholder were 14.1
billion boe, an increase of 2.2 billion boe from end-2008, including synthetic
crude oil, and after taking into account 2009 production. As a consequence,
Shell’s reserves to production ratio has increased from 10.0 years at end 2008
to 11.9 years at end-2009.
Further information is provided in our Annual Report and 20F, which has been
filed today.

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DEFINITIONS AND CAUTIONARY NOTE
Reserves: Our use of the term “reserves” in this presentation means SEC proved
oil and gas reserves for all 2009 data, and includes both SEC proved oil and gas
reserves and SEC proven mining reserves for 2007 and 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 2007 and 2008) excluding changes resulting
from acquisitions, divestments and year-end 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 34% 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, 2009
(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, 16 March 2010. 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.