Welcome to Houston!

1. < Welcome to Houston!

2. ENERGY FOR A CHANGING WORLD An introduction to Shell

3. We are active in more than 90 countries Worldwide, we have 93,000 full-time employees Our fuel retail network has around 43,000 service stations In a year, we sell 145 billion litres of fuel to our customers In 2010 we… produced 3.3 million barrels of oil equivalent per day; generated earnings of $20.5 billion; spent $23.7 billion on net capital investment; and spent over $1.0 billion on R&D Royal Dutch Shell plc is listed on the stock exchanges of Amsterdam, London and New York Profile Source: 2010 Annual Report and Form 20-F

4. OUR BUSINESS ENVIRONMENT

5. The energy challenge RISING GLOBAL ENERGY DEMAND 100 = world primary energy demand in 2000 CHANGING ENERGY MIX Million tonnes of oil equivalent high high low low Source: World Energy Outlook 2009

6. Shell in the U.S. • Shell has significant oil and gas production in the U.S. • The Gulf of Mexico accounts for 55% of Shell’s U.S. • production or about 250,000 barrels per day. • With about 1,600 full-time & contract employees in • the Gulf, Shell operates • six major offshore facilities • 13 manned platforms • one spar • and numerous subsea systems in the GOM. • Shell has substantial and growing onshore oil gas portfolio • in the U.S.; and is using advances in proven technologies • to tap rich resources like “tight” gas locked in shale • formations • In the summer of 2012, Shell has plans to explore • offshore Alaska where the resource potential is estimated • to be world-class.

7. Shell in the U.S. • Shell owns and operates three refineries in the U.S. with a combined capacity • of approximately 591,000 barrels per day. • Motiva, a Shell joint venture, owns and operates three refineries with a • combined capacity of 731,000 barrels per day. • In addition, Shell has four U.S. plants that manufacture 20 billion pounds of • chemicals annually for industrial use. • Shell is actively considering a number of projects to use US-produced natural • gas, such as the construction of a new chemical manufacturing facility, a • Gas-To-Liquids (GTL) facility, and micro-LNG plants to support the use of Liquid • Natural Gas (NLG) in the transportation sector. • Shell is also Involved in eight wind projects in North America.

8. 2012 US National Oil Bargaining - Outcomes Corporate IR Internal Communication

9. Topics for Discussion • Background: US Oil Industry Pattern Bargaining • Context Setting: The Year Leading Up to Negotiations • Dramatic Events and Volatility • Significant Economic, Political and Company Changes • Key Factors Impacting Oil Industry Bargaining • The USW’s Bargaining Agenda • The Settlement • Outcomes

10. US Oil Industry Pattern Bargaining History • Prior to 1966, Industry companies bargained with the Union locally and independently • In 1966, the common expiration date was established which highlighted the beginning of: • “Pattern Bargaining” • “Lead Company” concept • Amoco and Gulf were lead companies from 1966-1997 • Shell became Lead Company in 1997 bargaining: • Extension from 1998-2002 • Contract from 2002-2006 • Extension from 2006-2009 • Contract from 2009-2012 • Contract from 2012 – 2015

11. Years Leading Up To Negotiations – Dramatic And Volatile Events Nation Budget Woes Turmoil in the Middle East Unemployment Japan Fukushima Daiichi Nuclear Disaster Occupy Wall Street

12. 2011 – US Political Backdrop NLRB-Boeing fight called evidence of 'jobs blocking agenda' State Union Budget Battles Congressional Budget Battles Keystone Pipeline Politics Election Year Primaries

13. Key Factors Impacting 2012 Oil Industry Bargaining • Continued USW International Influence • BP Texas City Refinery Explosion • Deteriorating Economic Conditions from 2009 - 2010 • Signs of Recovery in 2011 • Overcapacity in the Refining business • Labor Movement – Increased Pressure on Public Sector Unions • States attempting to strip Collective Bargaining rights of Unions • Unions fight for survival, lowest membership numbers in US history • 2012 Presidential & Congressional Elections • Potential shifts in political power in Congress and possibly the White House • Negative public perception of the industry (rising gasoline prices and industry profits) • Democratic Pro Labor National Labor Relations Board(NLRB)

14. Centerpieces of 2011-12 USW National Oil Bargaining Policy Process Safety • Strong union effort to convince the public that the industry has not done enough to address process safety concerns • Aggressively pursue enforceable Health and Safety language Wages • “Substantial Increases” Health Care • Strong union effort to resist further cost shifting to the employees they represent and/or reduction in benefit levels

15. National Oil Bargaining Agreement 5:00 p.m. Tuesday, January 31, 2012

16. 2012 National Oil BargainingSummary of Significant Settlement Elements