Shell on track with strategy to improve performance and growth
The Hague, 15th March 2011.

At its annual Investor Day in London today, Shell will highlight progress on its
strategic plan to deliver profitable growth for shareholders.
Rapid economic development in non-OECD countries is driving sustained, and long
term demand growth for all forms of energy. Regulatory and political
uncertainties are adding to price and cost volatility in this long term trend.
In this era of ‘volatile transitions’, Shell is in the midst of an ambitious
phase of new growth investment, developing new sources of energy. Shell’s
activities provide low cost, safe and reliable energy supplies for our
customers, world-wide.
Shell’s three-year strategic plan, outlined a year ago, is building the
foundations for profitable growth for shareholders in the future. We are
improving near-term competitive performance, and delivering a new wave of
production growth.
For the next wave of growth, to 2020 we have over 30 new projects on the drawing
board which will generate new options for the medium term, for the integrated
energy company of the future.
Chief Executive Officer Peter Voser commented. “We have made good progress in
2010. Our profitability is improving, and we are on track for our growth
targets. There is more to come from Shell.”
Shell is on track to deliver its strategic targets by 2012, namely for a 50-80%
increase in cashflow from operations 2009-2012, in $60-$80 oil price and
improved Downstream and natural gas environment.  These targets were defined in
early 2010 against the context of the global economic downturn, in order to
generate surplus cashflow for shareholders through-cycle. The targets are
underpinned by one of the most substantial portfolios of new oil & gas projects
in our industry today.
In the first year of delivery against this three year strategic plan – 2010 –
Shell saw some $10 billion, or 40% improvement in operating cashflow to $33
billion, lower costs, higher oil & gas production, and continued progress with
Downstream restructuring. This was a strong all-round performance in 2010.

Key points from Shell’s annual strategy update
Performance focus
Cost reduction and operating efficiency are a key part of Shell’s business, to
ensure profitability for our shareholders and competitive energy prices for our
customers.  As a result of Shell’s actions, underlying costs fell by $2 billion
in 2010, with further scope for multi-billion dollar underlying cost reductions
in 2011-12 through continuous improvement programmes.
Shell continues to sell non-core positions to enhance capital efficiency, and as
part of funding for future investment. Asset sales proceeds have exceeded $30
billion in the last five years, and are expected to be up to $5 billion in 2011.

Downstream remains an important business for Shell, generating over $21 billion
of free cashflow in the last five years, from a leading global portfolio. The
company is redoubling its efforts to improve returns in Downstream. The bulk of
the 2010-12 asset sales programme in Downstream has been completed, with
transactions since end-2009 reducing refining capacity by over 700,000 b/d,
reducing our marketing footprint, and generating $4.7 billion of disposals
proceeds, including the recently-announced disposal plans for UK refining and
Africa marketing.
Programmes to streamline the global Downstream organization continue, with more
than $2.5 billion of cost take out in 2009 and 2010, and a new target for a
further $1 billion Downstream cost reduction for 2011-12 announced today.  This,
combined with the benefits of improved operating performance and selective
growth should deliver attractive returns across the cycle.

New wave of production growth
As a result of its sustained growth investment, Shell has delivered an organic
Reserve Replacement Ratio of 133% for 2010, and a total proved reserves to
production ratio of 11.5 years (for further information see Reserves
Supplement).
New Upstream start-ups increased Shell’s 2010 resources on stream to 10 billion
boe, a headline increase of 1 billion boe, in a portfolio that produced some 1.2
billion boe in 2010. New investment decisions, such as Mars B in the Gulf of
Mexico, maintained Shell’s resources base for new projects under construction at
11 billion. The company has 20 new upstream projects under construction, which
will add over 800,000 boe/d, driving the target for 3.5 million boe/d of
production for 2012, a 6% increase compared to 2010.
Shell has today set a new target for 3.7 million boe/d of production for 2014,
an increase of some 12% from 2010 levels, amongst the highest growth rates in
our sector.

Maturing next generation of project options
2010 exploration & appraisal activity added some 2.3 billion boe of new
resources, at a competitive cost of less than $2/boe. Discoveries in the Gulf of
Mexico and Australia, and successful wells in North America tight gas underpin
this 2010 performance.
In 2010, acquisitions and business development added further potential
resources, in the US Marcellus tight gas and Eagle Ford liquids-rich shale gas,
Iraq oil, and Australia coal bed methane.
Shell has negotiated agreements with three National Oil Companies in 2010 – in
China, Qatar and Saudi Arabia – covering new natural gas potential, and
continuing Shell’s long history of partnering with National Oil Companies.
Shell believes that its current Upstream portfolio can support growth to 2020,
with studies underway on over 10 billion boe of resources, an increase of some 2
billion boe from 2009 levels. Shell is assessing over 30 new projects with
production potential of over 1 million boe/d, and maturing further options,
spanning activities in tight gas, deep water, LNG and traditional resources, in
a world-wide, and industry-leading portfolio.

Outlook
Shell expects over $100 billion of net capital investment for 2011-14, some
$25-$27 billion per year, in line with previous guidance, to underpin the
Upstream growth profile, and Shell’s Downstream strategy.
2011 has started well, with the start up of new LNG at Qatargas 4,  and the
restart of refinery catalytic crackers at the Port Arthur at end-2010 and at
Pernis in February 2011.  These projects, combined with the expected 2011
start-up of Pearl gas-to-liquids in Qatar, and new oil sands upgrading capacity
in Canada, underpin Shell’s production and financial growth targets for 2012.
Shell continues to mature new options for future growth investment, with plans
to drill 25 high potential exploration wells in 2011. The company is planning to
take final investment decision on some 10 new projects in 2011-12, including
Prelude Floating LNG in Australia, debottlenecking of the AOSP project in Canada
oil sands, and deep water oil & gas developments at the Cardamon discovery in
the Gulf of Mexico and at Malikai in Malaysia.

Supplement: Reserves update
On an SEC basis, Shell in 2010 added 1,370 million boe of proved oil and gas
reserves before production, of which 1,197 million boe comes from Shell
subsidiaries and 173 million boe is associated with the Shell share of equity
accounted investments. With 2010 production of 1,242 million boe, our headline
Reserves Replacement Ratio was 110%. Organic Reserves Replacement Ratio, which
excludes the impact of oil price movements in the year, acquisitions and
divestments, was 133%.
Reserves additions in 2010 include 113 million boe in additions from new fields
in North America, Asia, Europe, Africa and Oceania. Proved reserves additions
were made across the global Shell portfolio.
At end 2010, net proved reserves attributable to Shell shareholders were 14,249
million boe, an increase of 117 million boe from end-2009, after taking into
account 2010 production. As a consequence, Shell’s reserves to production ratio
was 11.5 years at the end of 2010.
Further information is provided in our Annual Report and 20F, which has been
filed today.
Enquiries
Shell Investor Relations
The Hague - Tjerk Huysinga: + 31 70 377 3996
USA – Ken Lawrence: +1 713 241 2069
Shell Media Relations
International, UK, European Press: +31 70 377 3600
DEFINITIONS AND CAUTIONARY NOTE:
Reserves: Our use of the term “reserves” in this presentation means SEC proved
oil and gas reserves for all 2009 and 2010 data, and includes both SEC proved
oil and gas reserves and SEC proven mining reserves for 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 2008) excluding changes resulting from
acquisitions, divestments and year-average 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 24% 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, 2010
(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, 15 March 2011. 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.

END