Royal Dutch Shell is a multinational oil and gas company founded in 1907 through the merger of Royal Dutch Petroleum Company and Shell Transport and Trading Company. It operates in over 90 countries and produces 3.1 million barrels of oil equivalent per day. Shell has a long history of oil production and supplying the Allied forces during World Wars I and II. It is currently one of six oil supermajors and has diversified into renewable energy. Shell engages in corporate social responsibility initiatives and had $451 billion in revenue in 2013.

1. 1
Presentation 1
Royal Dutch Shell
Section D

2. 2

3. History
Royal Dutch Petroleum Company
Founded in 1890, after licensed by King William III of the Netherlands to
work on petroleum wells in The Dutch East Indies
+
Shell Transportation and Trading Company
Antique business importing and selling sea shells, founded in 1897 in London
=
Royal Dutch Shell Group
Created in February 1907
Merger was largely driven by the need to compete globally
Ownership ratio between the Netherlands and Britain 60:40
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4. Introduction
 HQ: Netherlands, Registered office: London
 Largest company in the world in the Oil & Gas industry, 1 of 6
“Supermajors”
 Royal Dutch Shell’s revenue was equivalent to 84% of Netherland’s
GDP in 2013, valuing USD 555.8 Billion
 Dynamic in all area of Oil & Gas Industry
Exploration Production Refining
Distribution & marketing Petrochemicals Power generation
3

5. Introduction (Continued)
 90 countries, 44,000 service stations, 92,000 employees
 3.1 million barrels of oil equivalent produced per day
 Topped the 2013 Fortune global Top 500 list
 2014: Second in terms of revenue in the Financial Times list
 Ventured into renewable energy resource market recently
Biofuel Wind Natural Gas
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4

6. World War I Period (1914-1918)
 Main supplier to the British Expeditionary Force
 Sole supplier of aviation fuel
 Supplied 80% of British Army’s TNT
 Volunteered all it’s shipping to British Admiralty
Inter-war Period
(1919-1939)
 1920: Leading oil company
globally
 11% of the world’s crude oil
supplier
 Owned 10% of tanker tonnage
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5

7. Inter-war Period (1919-1939)
“You cannot carry on a war without oil. The capital of the Netherlands
East Indies is Britain and America, and the Dutch Government-in-exile
has fled to England; so I think it will be impossible to obtain oil... by
peaceful means.”
- Hara Yoshimichi, President of the Privy Council, Japan
“This all shows that the Netherlands East Indies are slowly but
certainly becoming an object which must be taken into account
in world affairs. The Netherlands East Indies, 25 years ago a
friendly corner in the Pacific, are now a card in the game of which
note must be taken.”
- Bataviaasche Nieuwsblad (Dutch colonial newspaper) on 28th
November, 1936
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6

8. World War II (1939-1945)
 Shell Chemical Company specifically manufactured Butadiene
for synthetic rubber
 Used in military truck tyres
 Continued production and supply of aviation fuel to Britain
 Under then Chairman Henry Deterding, pro-Nazi stance was
taken by Royal Dutch Shell
 Massive financial support by Fascist Deterding to Adolf Hitler
 After his death in 1939 during combat the company was Pro-
Allies
 Lost 87 Shell ships in enemy action
 Lost £90 million due to their “Scrotched Earth” protocol
 Origin of “You can be sure of Shell” tagline to rebuild confidence
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7

9. Organization Hierarchy
Board of
Directors
Chairman of
the Board &
Managing
Director
Vice
Chairman of
the Board
Deputy
Managing
Directors
Strategic
corporate
planning &
development
Administration
and Human
Resources
Finance Marketing
Refinery
Manufacturing
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8

10. Jorma Ollila
Chairman of
the Board
2006
Ben van
Beurden
Chief Executive
Officer
2014
Simon Henry
Chief Financial
Officer
2009
Matthias
Bichsel
Projects&
Technology
Director
2009
John Abbott
Downstream
Director
2013
Hugh Mitchell
Chief Human
Resources &
Corporate
Officer
2009
Andrew
Brown
Upstream
Director
2012
CurrentExecutiveBoard
10
9

11. Products
 Shell Bitumen
 Cost effective and
sustainable solutions
 Shell LPG
 Dimethylether (DME) main
constituent
 Shell Marine Products
 Specialized lubricants for air
compressor, axles, bearings
 Grease
 Card services
 Shell Fuel Card for Businesses
 Shell Credit Card
 Fuels
 Shell Nitrogen Enriched fuel
 V-Power fuel
 Oil and Lubricants
 For cars and bikes
 Heavy-duty vehicles
 Shell Chemicals
 Petrochemicals used in plastics,
rubbers, fibers, foams
 Further used in textile, paints, mattress
industries
 Shell Aviation
 Fuel and lubricants
 Turbine and Piston Engine oil
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10

12. Competitors
Exxon
Mobil
Revenue:
$428.3
billion
Daily
production:
6.4 million
barrels
Reserves: 13.6
billion barrels
of Oil
Equivalent
Chevron
Corp.
Revenue:
$222.5
billion
Daily
production:
2.6 million
barrels
Reserves: 11.3
billion barrels
of Oil
Equivalent
British
Petroleum
Revenue:
$375.5
billion
Reserves:
18.1 billion
barrels of Oil
Equivalent
Daily
production:
4.1 million
barrels
Total SA
Revenue:
$237.0
billion
Daily
production:
3.4 million
barrels
Reserves:
11.5 billion
barrels of Oil
Equivalent
Royal
Dutch
Shell
Revenue:
$451.2 billion
Daily
production:
3.1 million
barrels
Reserves: 13.6
billion barrels
of Oil
Equivalent
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11

13. Corporate Social Responsibility
 Shell Foundation, established in 2000
 Initial endowment from Shell group: $250 million
 Annual donations: $15 million
 Voluntary social investment globally: $159 million
 CSR programs include:
Aspire:
Program for SMEs in Africa
Assistance and Business
Capital
Excelerate:
Modern energy services to the
poor
India and Bangladesh
GACC:
Global Alliance for Clean Cookstoves
$6 million in 3 years
Tackle harmful smoke caused by open
fires or inefficient stoves
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12

14. Financial Data & Endorsements
 Total revenue: $451.2 billion
 Operating income: $26.87 billion
 Profit: $16.38 billion
 Total asset: $357.51 billion
 Total equity: $180.04 billion
 Current stock price (London Stock
Exchange): £2403.5
 Sponsors of F1 racing Ferrari
team and cars, since 1970
 Belgian Grand Prix title sponsor
 Title sponsors for Asia Talent Cup
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13

15. References
 Clee, DJ. “Royal Dutch – Shell: 1919-1946” [Slide 5,6,7]
 http://en.wikipedia.org/wiki/Royal_Dutch_Shell [Slide 2,3,4,11,13]
 www.shell.com [Slide 10,12]
 http://royaldutchshellplc.com/2011/03/31/you-can-be-sure-of-shell-
the-biggest-confidence-trick-in-history/ [Slide 7]
 http://www.reuters.com/finance/stocks/companyOfficers?symbol=R
DSb.L&WTmodLOC=C4-Officers-5 [Slide 8,9]
 http://www.londonstockexchange.com/exchange/prices-and-
markets/stocks/prices-search/stock-prices-
search.html?nameCode=RDSA [Slide 13]
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16. 16
Presentation 2
Royal Dutch Shell
Section D

17. Recapitulation
 Royal Dutch Petroleum Company + Shell Transportation and Trading
Company = Royal Dutch Shell Group (1907)
 One of six “Supermajors”
 Shell during World War I, Interwar Period & World War II: Advent of You can
trust Shell
 Organizational Hierarchy: Global and Regional
 Current Executive Board
 Shell’s major product offerings
 Competitors: Exxon Mobil, Chevron Corp., British Petroleum and Total SA
 Corporate Social Responsibility Initiatives
 Financial Data
 Endorsements
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1

18.  The world’s largest industry in terms of dollar value
 Includes global processes of: exploration, extraction, refining, transporting,
marketing and retailing of petroleum products
 Divided into 3 major operational strata: Upstream, Midstream and Downstream
 World consumes 30 billion barrels (4.8 km³) of oil annually
 Oil accounts for a large percentage of the world’s energy consumption: low of 32%
(Europe and Asia), high of 53% (Middle East)
 “Supermajor” companies oil produce <15% of total world supply
 National oil companies control >80% of the world's reserves of oil and natural gas
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The Petroleum Industry
2

19. 19
The Petroleum Industry
Country wise Oil Production in the decade between 1960 to 2006
3

20. 20
Global “Cartels” & Shell’s Region-wise Revenue
4

21. Competitors’ Operational Analysis (2013)
Exxon
Mobil
Downstream:
206,794m
GBP
Upstream:
23,567m
GBP
Corporate:
126m
GBP
Chevron
Corp.
Downstream:
111,999m
GBP
Upstream:
15,481m
GBP
Corporate:
217m
GBP
British
Petroleum
Downstream:
224,011m
GBP
Corporate:
600.73m
GBP
Upstream:
17,943m
GBP
Sinopec
Downstream:
128,799m
GBP
Upstream:
23,741m
GBP
Corporate:
133.46m
GBP
Royal
Dutch
Shell
Downstream:
258,286m
GBP
Upstream:
30,297m
GBP
Corporate:
97.88m
GBP21
5

22. Company Percentage Valuation (USD)
Shell Oman Marketing 100.0% 13,636,350
Shell Pakistan Ltd. (SHEL) 76.1% 230,591,556
Hankook Shell Oil Co. Ltd. 53.8% 348,007,975
Shell Refining Company (FOM) Berhad 51.0% 263,297,700
Shell Oman Marketing Company SAOG 46.1% 238,909,290
Showa Shell Sekiyu KK 35.8% 1,501,054,181
Companhia de Gas de Sao Paulo-Comgas 22.8% 481,169,466
Codexis (CDXS) 14.4% 11,703,970
Chesapeake Energy Corp. 100.0% 20,000,000,00022
Shell’s Acquisitions & Holdings
6

23. Name Percentage
Institutional Shareholders (999) 13.29%
Necigef Nederlands Centraal Inst Giraal Effectenverkeer BV 43.8%
BlackRock Investment Management (UK) Ltd. 3.54%
State Administration of Foreign Exchange 1.90%
The Vanguard Group, Inc. 1.41%
Scottish Widows Investment Partnership Ltd. 1.34%
Legal & General Investment Management Ltd. 1.34%
State Street Global Advisors Ltd. 1.01%
BlackRock Fund Advisors 0.84%
SSgA Funds Management, Inc. 0.83%
Franklin Mutual Advisers LLC 0.80%
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Who Owns Shell?
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24. 24
Shell: The Last 4 Years
2013 (in mill
USD)
2012 (in mill
USD)
2011 (in mill
USD)
2010 (in mill
USD)
Total revenue 451,235.00 467,153.00 470,171.00 368,056.00
Operating
Income
26,870.00 37,722.00 42,598.00 32,197.00
R&D 6,596.00 4,411.00 3,389.00 3,055.00
Gross Profit 69,650.00 71,213.00 73,574.00 84,880.00
Possible reasons for drastic drop in Revenue in
2012-13:
 Political turmoil in the oil-producing Middle
East
 Particularly in Syria, Egypt, Lebanon (Gulf
nations)
 Highly price sensitive industry
 Affected all major players similarly: “trend”
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25. 25
Shell In India
 Largest international investor in India’s energy
sector: Invested US$1billion
 1928: Burmah-Shell Oil Storage and Distributing
Company of India Ltd. Import and Marketing of
kerosene
 1932, 15th Oct: Civil aviation arrived in India –
Shell fueled J.R.D. Tata’s solo flight from
Karachi to Mumbai
 1950s: Introduced LPG as cooking fuel to Indian
homes
 Shell Lubricants became 100% subsidiary of
Royal Dutch Shell by acquiring minority stake of
Bharat Petroleum
 Corporate Office: Gurgaon; 6 regional offices
 2000 fuel retail stations, 250 distributors, 400
board members
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26. 26
Analysis of Safety Measures
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27. References
 Shell Analyst Management Day London [Slide 10]
 http://www.shell.com/ind/aboutshell/shell-businesses/india-business-structure/lubes-
india.html [Slide 9]
 http://www.nasdaq.com/symbol/rds.a/ownership-summary#ixzz3BnDRtYlr [Slide 7]
 http://www.4-traders.com/ROYAL-DUTCH-SHELL-PLC-4005177/company/ [Slide 4,7]
 http://www.4-traders.com/EXXON-MOBIL-CORPORATION-4822/company/ [Slide 5]
 https://www.google.com/finance?q=NYSE%3ARDS.B&fstype=ii&ei=3e4AVKDyDsO9lAWUtIDYDQ
[Slide 8]
 http://en.wikipedia.org/wiki/Petroleum_industry [Slide 2,3]
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28. Presented by:
Naima Haque (2014169)
Nikunj Gulati (2014179)
Pankhuri Kasera (2014189)
Pragna Kunda (2014199)
Pulkit Agarwal (2014209)
Rakesh Choudhary (2014220)