Challenges of the energy transition & EV charging Vector ... · Junction City biogas plant, USA (Oregon) sonnen*, Germany GI Energy, USA Rheinland Hydrogen Electrolyser, Germany Shell

Copyright of Shell International B.V.

Challenges of the energy transition & EV charging

Vector eMobility Engineering DayApril 2019

Copyright of Shell International B.V. 1


Definitions & cautionary note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal 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 over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to “joint ventures” and “joint operations” respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect 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’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ 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 [report], 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 regulatory measures addressing climate change; (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. No assurance is provided that future dividend payments will match or exceed previous dividend payments. 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 risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2016 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this presentation and should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, 16 April 2019. Neither Royal Dutch Shell plc 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. This presentation may contain references to Shell’s website. These references are for the readers’ convenience only. Shell is not incorporating by reference any information posted on www.shell.com. We may have used certain terms, such as resources, in this presentation that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our 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.

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Copyright of Shell International B.V. 3Copyright of Shell International B.V.

◼ The world needs to produce more energy with fewer

greenhouse gas emissions if global society is to meet

its development and environmental goals.

◼ Achieving these goals will require significant shifts

in the way the world produces and uses energy over

the course of this century.

◼ Shell’s long-term success relies on our ability to provide

much-needed energy and related products in a way

that is commercially competitive as well as socially

and environmentally responsible.

Our approach


◼ Focus areas: EV charging, biofuels and hydrogen

New Fuels

◼ Low-carbon generation and storage

◼ Optimization, trading & marketing

◼ Customer solutions, including electric mobility

Power

NoordzeeWind, The Netherlands

. 4

Cutting across New Energies:

▪ Nature Based Solutions- investing in credits from natural sinks and supporting market development

▪ Shell Ventures- Shell’s corporate venture arm, investing in promising technologies and business models

▪ Digital Businesses- piloting apps to give customers choice and control over their daily activities

New Energies covers both solutions for power and new fuels supplemented by 3 specialist areas

Copyright of Shell International B.V. 5

GenerationCustomer solutions Optimization

Power


Shell New Energies is developing a full suite of new energies & EV charging solutions across the value chain….

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Royal Dutch Shell

Company type: Oil major

Company location: NetherlandsEnergy

procurement

Energy management

PV Non-PV Microgrid

Demand

response &

VPP

Storage EV charging P2P trading

In-house capability 1 1 0 0 0 1 0 0 0

Merger & acquisition 1 0 1 1 1 2 2 2 0

Joint venture 0 0 0 0 0 0 0 0 0

Strategic investment 0 1 4 0 1 2 2 1 0

Product partnership 0 2 0 0 0 0 0 0 0

Distribution agreement / joint offering 0 0 0 0 0 0 0 0 0

On-site generation

Overview: 2 4 5 1 2 5 4 3 0

Source: BNEF Decentralised Energy Strategy Mapper March 2019

Legend:

In-house capability or M&A

Partnership or strategic investment

No activity


….. is leading the market when compared to it’s peer group…

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Energy procurement

Energy management

PV Non-PV Microgrid

Demand

response &

VPP

Storage EV charging P2P trading

On-site generation

00

0 0 0 0

1 1 3

1

2

0 1 3BP 0 1 1 0 00

0 0 0 0Exxon 0 0 0

Chevron 0 0 0 0

TOTAL 0 3 3 1

1Royal Dutch Shell 2 4 5

0

3 02 5 4

Source: BNEF Decentralised Energy Strategy Mapper March 2019

Legend:

In-house capability or M&A

Partnership or strategic investment

No activity


….and continues to execute a strong growth strategy Shell New Energies Investments, Acquisitions and Ventures

KEY

Energy Solutions Solar

Digital Businesses New Fuels

Energy Access Shell Ventures

Wind

*

**

Minority investment, JV or consortium

Product launch date

Blauwwind, Netherlands

Sense Home Monitor, USA

Kite Power Systems, UK

NewMotion, NL (HQ)

Hydrogen Stations, UK & California

SBI BioEnergy, Canada

IH2, India

First Utility, UK (HQ)

SolarNow*, Uganda (base)

SteamaCo*, UK (base)

Sunseap, Singapore (HQ)

Innowatts, USA

Greentown Labs, USA

Fare Pilot**, UK (HQ)

Connected Freight**, Philippines

Silicon Ranch*, USA

Cleantech Solar*, Singapore

Moerdijk, Netherlands

Atlantic Shores Offshore Wind*, USA

Mayflower Wind Energy*,USA

TetraSpar*, Norway

Light and heavy duty hydrogen stations, USA (California)

Junction City biogas plant, USA (Oregon)

sonnen*, Germany

GI Energy, USA

Rheinland Hydrogen Electrolyser, Germany

Shell Energy Inside**, USA

Husk Power*, India (base)

SunFunder*, Kenya (base)

HyET, NL

Axiom Exergy, USA

Ample, USA

WonderBill**, UK

Greenlots, USA

2017 20182016SHELL NEWENERGIESESTABLISHED 2019

Makani, USA

TetraSpar*, Norway

sonnen, GermanyLimejump, UK


….a strategy acknowledged by the industry.

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New Fuels

ElectricMobility

HydrogenBiofuels Gas for transport


Active is EVs charging infrastructure and

technology

Active in hydrogen electric

Conventional & advanced biofuels

Offering gas to liquids (GTL) and liquefied natural gas (LNG)

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DRAFT DOCUMENT

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Electric mobility


Shell is creating an ecosystem to serve EV drivers, with the home and energy a vital part

CLEAN POWER GENERATION

ENERGY

TRADING

UTILITIES

LOCATIONS

(“MISSIONS”)

@ HOME

@ WORK

@ DESTINATION

ON-THE-GO

SOLAR

WIND

RNG

DRIVERS

(B2C, B2B)

DIGITAL MSP

CHARGING

POINTS

EV ‘FUELS’ RETAILING ECOSYSTEM

Or through RFID card, contactless or Euroshell

Plus access to over 100,000 charge posts

Access through our digital MSP

Convenience fast charging at our Retail sites

INTEGRATED POWER ECOSYSTEM

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OUR PUBLIC CHARGING NETWORK

NOTE: Images are selective examples only from a growing portfolio


Innovation & Digital

Shell’s ambition

14

Storage

Utility Scale Renewables

Grid Integration & Trading

Smart Charging

Commercial Power Supply

Residential Power Supply

Smart Charging & Load Balancing

Home Solar

Distributed Renewables &

MicrogridsShell/NewMotion Cloud Services

Shell & 3rd Party Network

Mobility Services

Home Work On the Go

Provide energy and mobility products that help customers reduce their emissions

Energy Storage


Overview of existing EV products and services in Europe

Hardware - NewMotion charge points

Complete package with installation and maintenance with 24/7 helpline

Home Work On-The-Go

Home✓ Online transaction overview

✓ Automatic reimbursement of

energy costs for lease drivers

✓ Community sharing

✓ Enabling energy services

Work✓ Charger availability displayed

✓ Smart load balancing across

chargers

✓ Utilisation management

✓ Facility management and group

charging

On-The-Go✓ Financial settlement

✓ Location & availability overview

✓ Route planning

✓ Green charging

✓ Monthly overview

NewMotion Services

1

3

Card/App access to Shell/NewMotion & 3rd party network

Access to network of 100.000 charge points

2


Shell E Mobility: charging & energy services to power customer journeysThe EV at the heart of the new energy ecosystem

16

Charging at home/work

Smart grid integration

Charging on the go/destinations

◼ A full suite of home and work charging solutions for fleets,leasecos, B2Bs and private drivers.

◼ Constant innovation in a rapidly developing arena e.g. trials forfleets without home based charging.

◼ Solutions for PHEV drivers & fleets wishing to offset CO2.

◼ Shell Recharge: fast-charging posts on Shell forecourts inthe UK, the Netherlands & Germany with more to come

◼ An IONITY partner, we also plan to offer 500 ultra-fast charging postsacross 10 European countries.

◼ NewMotion card offers access to over 100,000 chargeposts in Europe.

◼ Smart charging is at the core of our offer – creating value to thegrid and to the customer.

◼ Experience in controlling & trading charging in US (CA), UK, NL &Germany.

◼ A leading V2X player.


FIVE CHALLENGES

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◼ Scale: more & cleaner energy for all

◼ TWO transitions happening at the same time: Energy & Mobility

◼ Route to value

◼ Providing customers with a choice of energy for mobility

◼ Predicting customer behaviour: speed & timing


Thank you!

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Documents

Challenges of the energy transition & EV charging Vector ... · Junction City biogas plant, USA (Oregon) sonnen*, Germany GI Energy, USA Rheinland Hydrogen Electrolyser, Germany Shell