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Title: 2024Q4 Presentation

Duration: 00:10:25

Description: Video footage of the presentation of the result of the Q4 2024

[Background music begins]

Geometric, yellow shapes rotate on a white background. The grey outline of the Shell logo ripples before the Shell logo fades onto the screen in the lower left-hand corner. The ripples continue as the logo fades away and grey on-screen text appears.

[Text Displays]

Fourth Quarter & Full Year 2024

Results

Solid Cashflow Generation; Resilient Distributions

Shell plc

30^th January 2025

#PoweringProgress

[Video footage]

Medium close shot of Wael Sawan and Sinead Gorman speaking directly to the camera.

Wael Sawan

Welcome everyone. Today, Sinead and I will present Shell’s fourth quarter and full year 2024 results.

[Video footage]

Medium close shot of Wael Sawan from waist upwards as he continues to speak.

Wael Sawan

2024 was another strong year for Shell.

[Text Displays]

Wael Sawan. Shell CEO.

Wael Sawan

Despite some softness in our Q4 earnings impacted by some non-cash items, this year we delivered the second highest cash flow from operations in our history.

[Video footage]

Close up shot of Wael Sawan as he continues speaking directly to the camera.

Wael Sawan

The culture that we are building with a focus on performance, discipline and simplification has been key to achieving these results…

[Video footage]

The camera pans to the right and white on-screen text underlined in yellow on a grey transparent box appears.

[Text Displays]

Performance

Discipline

Simplification

Wael Sawan

…enabling us to make great progress in delivering more value with less emissions.

[Video footage]

Previous text on grey transparent box fades and a new transparent grey box with on screen text appears.

[Text Displays]

More value

Less emissions

[Video footage]

Medium close shot of Wael Sawan from waist upwards as he continues to speak.

Wael Sawan

Let me start with safety, which remains our top priority.

[Video footage]

Close up shot of Wael Sawan as he continues speaking directly to the camera.

Wael Sawan

Whilst I’m pleased with the improvements we’ve seen in personal safety this year, we must continue to do more on process safety and focus on delivering the fundamentals.

[Video footage]

Two male workers wearing Shell uniforms and protective headgear talk in a warehouse.

Wael Sawan

We will focus on returning to the downward trend of previous years…

[Video footage]

A close-up of a drone. An orange robot walks on four legs past an open door leading onto an industrial area. A white container opens and a drone flies out.

Wael Sawan

…including leveraging new technologies such as sensors, robotics and AI. These technologies have already started to have an impact…

[Video footage]

A close up of computer screens. Four people look at many different computer screens showing the images being captured by drones.

Wael Sawan

…but there is so much more running room to go…

[Video footage]

The camera pans across an industrial site, followed by a close-up of a yellow robot rolling through the site.

Wael Sawan

…and I’m encouraged by the progress that we are starting to see.

[Video footage]

Medium close shot of Wael Sawan from waist upwards as he continues to speak.

Wael Sawan

Now on to Capital Markets Day 2023 and the progress that we are making against our targets.

[Video footage]

Close up shot of Wael Sawan as he continues speaking directly to the camera.

Wael Sawan

CMD23 was an important milestone for us and, due to the efforts of so many across the organisation, we are ahead of schedule across the majority of our key targets and ambitions…

[Video footage]

The grey outline of the Shell logo ripples on the left side and black on-screen text on four white boxes appears. The box in the top left displays an image of a hand holding a coin between thumb and forefinger.

[Text Displays]

Shareholder distributions of 30-40% of CFFO through the cycle

[Video footage]

The box in the top right displays an image of a card with a flower on it. The head of the flower is in the shape of a coin.

[Text Displays]

>6% p.a. absolute free cash flow growth through 2030¹

[Video footage]

The box in the bottom left displays an image a hand, palm facing upwards, holding a flower. The head of the flower is in the shape of a coin.

[Text Displays]

>10% p.a. FCF/share growth through 2025¹

[Video footage]

The box in the bottom right displays an image a card. On the card there is a bar graph with three yellow bars and a dollar sign.

[Text Displays]

Structural cost reduction of $2-3 billion by end-2025

Wael Sawan

…starting with structural costs where we achieved a reduction of $3.1 billion by the end of 2024, one year ahead of our end 2025 target date, and above the range of $2-3 billion that we set in 2023.

[Video footage]

The grey outline of the Shell logo ripples on the left side and black on-screen text appears. In the middle of the screen, there’s a bar with numbers that go from 1 to 3. The bar starts as grey but then turns yellow from numbers 1 to 3. The section from 2 to 3 is highlighted with black horizontal strokes, showing the target range.

[Text Displays]

Structural cost reduction

Target

$ BILLION

[Video footage]

Medium close shot of Wael Sawan from waist upwards as he continues to speak.

Wael Sawan

The first year of these reductions was more heavily weighted towards portfolio actions, but we have now entered the phase that increasingly leans towards reducing costs through performance initiatives and simplification.

[Video footage]

Close up shot of Wael Sawan as he continues speaking directly to the camera.

Wael Sawan

On CAPEX, I’m really proud of the discipline that we have shown, whether that be through the pausing of projects such as our biofuels project in Rotterdam or passing on opportunities that did not meet our high bar for investment.

[Video footage]

Medium close shot of Wael Sawan from waist upwards as he continues to speak. The shot changes to a US city street view followed by an image reading NEW YORK STOCK EXCHANGE. The Shell logo is visible on stock exchange screens and the shot pans to a wider view of the stock exchange, including an aerial view with multiple Shell logos visible. The shot cuts to a medium close shot of Wael Sawan from waist upwards as he continues to speak.

Wael Sawan

At CMD23, we lowered our CAPEX range from previous years, and in 2024, because of our focus on value creation, our CAPEX number ended below the lower end of our guidance.

[Video footage]

Close up shot of Wael Sawan as he continues speaking directly to the camera.

Wael Sawan

All of this, together with our improved operational performance, enabled us to outperform our targets for absolute cash flow growth and free cash flow per share growth.

[Video footage]

The camera pans to the right and black on-screen text in two white boxes appears. The top box displays an image of a card with a flower on it. The head of the flower is in the shape of a coin.

[Text Displays]

>6% p.a. absolute free cash flow growth through 2030¹

[Video footage]

The bottom box displays an image a hand, palm facing upwards, holding a flower. The head of the flower is in the shape of a coin.

[Text Displays]

>10% p.a. FCF/share growth through 2025¹

[Video footage]

Medium close shot of Wael Sawan from waist upwards as he continues to speak.

Wael Sawan

And we have distributed this additional cash to our shareholders.

[Video footage]

Close up shot of Wael Sawan as he continues speaking directly to the camera.

Wael Sawan

At CMD23, we increased our distribution range from 20 to 30% of CFFO to 30 to 40% and we have delivered at the top end of that range.

[Video footage]

The camera pans to the right and black on-screen text in a white box appears. The box displays an image of a hand holding a coin between thumb and forefinger.

[Text Displays]

Shareholder distributions of 30-40% of CFFO through the cycle

[Video footage]

The grey outline of the Shell logo ripples on the left side and white on-screen text on a grey transparent box appears.

[Text Displays]

2024 Total Shareholder Returns

>$22.5 BILLION

Wael Sawan

In 2024, we returned more than $22.5 billion to our shareholders, primarily through buybacks, just as we said we would. All of this, while further strengthening our balance sheet.

[Video footage]

Close up shot of Wael Sawan as he continues speaking directly to the camera.

Wael Sawan

Moving forward, we will continue to preferentially allocate incremental capital to buybacks, given the attractiveness of our shares, which are underpinned by the significant progress that we are making as an organisation.

[Video footage]

Medium close shot of Wael Sawan from waist upwards as he continues to speak.

Wael Sawan

Now, let’s look at how we are delivering less emission alongside more value.

[Video footage]

Close up shot of Wael Sawan as he continues speaking directly to the camera.

Wael Sawan

In 2024, we abated more than one million tonnes of Co2 from our operations.

[Video footage]

High-speed footage of people working onsite. A structure is transported next to another structure. 

Wael Sawan

This allowed us to keep our total scope one emissions roughly flat compared with last year, despite increased asset utilisation.

[Video footage]

A large LNG Co2 carrier ship sails next to a city harbour. The shot changes to an ariel view of the ship sailing into the harbour, followed by a smaller red and black boat. Next, an ariel view of a tractor driving through a field of solar panels.

Wael Sawan

To date, we have achieved 60% of the reductions required to meet our 2030 target.

[Video footage]

An ariel shot of many fields of solar panels. The shot changes to a digger working in an industrial area. Next, an aerial shot of the area. The shot changes to two workers wearing overalls and PPE working onsite. Next, another worker works onsite holding a rod. Three workers wearing PPE are having a discussion onsite. A drone takes off and flies through the sky while a worker looks at the images it captures on their laptop.

Wael Sawan

Methane emissions remained well below our 0.2% target for 2025, and routine flaring remained flat year-on-year…

[Video footage]

Close up shot of Wael Sawan as he continues speaking directly to the camera.

Wael Sawan

…and we achieved a reduction in the net carbon intensity of the products that we sell, moving us closer to our target of a 15-20% reduction by 2030 compared with 2016 levels.

[Video footage]

Medium close shot of Wael Sawan from waist upwards as he continues to speak.

Wael Sawan

Progress against our carbon targets will not always be linear, but our plans are clear, and we have shown that when we commit to something, we deliver it.

[Video footage]

Close up shot of Wael Sawan as he continues speaking directly to the camera.

Wael Sawan

Let’s now move on to the progresses that we’ve made on strengthening our portfolio.

[Video footage]

Aerial view of a rig at sea. Shot changes to an aerial view of a large ship at sea.

[Text Displays]

Mero-3

Courtesy of Petrobras

Wael Sawan

In our deepwater business, we saw WHALE and Mero-3 come on line, adding significant production volumes.

[Video footage]

An overhead view of a rig with a helipad. The shot changes to a pan of the rig out at sea.

[Video footage]

Medium close shot of Wael Sawan from waist upwards as he continues to speak.

Wael Sawan

At CMD23…

[Video footage]

Close-up shot of two workers in orange overalls working on a rig.

Wael Sawan

…we said we would deliver new projects with more than 5,000 barrels of oil equivalent a day…

[Video footage]

A shot of a rig out at sea as the sun is setting. The camera pans to the left and white on-screen text underlined in yellow on a grey transparent box appears.

[Text Displays]

>500 kboe/d

at peak production

2025

Wael Sawan

…of peak production by the end of 2025.

[Video footage]

Medium close shot of Wael Sawan from waist upwards as he continues to speak.

Wael Sawan

Today, we’ve delivered over 80% of that, with 2025 just beginning.

[Video footage]

Close up shot of Wael Sawan as he continues speaking directly to the camera.

Wael Sawan

In addition, we took a final investment decision on Bonga North in Nigeria this quarter, a project that’s expected to deliver peak production of 110,000 barrels of oil per day…

[Video footage]

The camera pans to the right and white on-screen text underlined in yellow on a grey transparent box appears.

[Text Displays]

>110 kboe/d

at peak production

Wael Sawan

…another example demonstrating the strength and attractiveness of our project funnel.

[Video footage]

Medium close shot of Wael Sawan from waist upwards as he continues to speak.

Wael Sawan

Earlier in 2024 we also further strengthened our leading integrated gas portfolio through the acquisition of Pavilion.

[Video footage]

Shot of a large ship and three smaller boats out at sea.

Wael Sawan

We entered into the Ruwais LNG project in Abu Dhabi…

[Video footage]

Aerial view of a gas complex plant near a shore.

Wael Sawan

…and we took final investment decisions on a number of important projects such as Manatee and Trinidad and Tobago.

[Video footage]

Medium close shot of Wael Sawan from waist upwards as he continues to speak.

Wael Sawan

And we continue to look for innovative ways to unlock value across our existing portfolio.

[Video footage]

Aerial view of three red ships and a large white ship berthed in a city harbour.

Wael Sawan

In the North Sea, we recently announced an incorporated join venture with Equinor…

[Video footage]

Aerial view of a blue ship next to a rig with four small ships berthed there. There are two wind turbines in the distance.

Wael Sawan

…adopting a new business model to deliver more value from our existing �鶹��ý assets.

[Video footage]

Aerial view of a rig with a helipad. Two ships are berthed on the rig.

[Video footage]

Medium close shot of Wael Sawan from waist upwards as he continues to speak.

Wael Sawan

In downstream and renewables, we continue to strengthen and high grade our portfolio.

[Video footage]

Close up shot of Wael Sawan as he continues speaking directly to the camera.

Wael Sawan

In mobility, we completed the divestment of Shell Pakistan, helping us achieve our Capital Markets Day aim of disposing of 500 sites annually.

[Video footage]

Close up shot of a light blue flag blowing in the wind. The shot expands to include two EV gas pumps at a petrol station.

Wael Sawan

At the same time, we have now installed more that 70,000 EV public charge points globally…

[Video footage]

High-speed footage of multiple cars charging at a Shell EV Recharge point in China. Next, a close up of an EV charging point. A woman puts the pump into the EV charging point. The shot changes to a close up of the pump charging the car and the EV charging point. The camera zooms out.

Wael Sawan

…achieving yet another aim one year ahead of schedule.

[Video footage]

Close up shot of Wael Sawan as he continues speaking directly to the camera.

Wael Sawan

In renewables and energy solutions, we completed the acquisition of a combined cycle power plant in Rhode Island, and we are progressing well with the construction of our Holland Hydrogen One project…

[Video footage]

Close up shot of workers working on the construction of the Holland Hydrogen One project. Next, a high-speed shot of the construction going from day to night. The shot zooms out and we see three wind turbines in the background.

Wael Sawan

…which will be Europe’s largest renewable hydrogen plant once operational. And in chemicals, we took a final investment decision to expand our CSPC petrol chemicals joint venture with CNOOC and Daya Bay, China.

[Video footage]

Close up shot of Wael Sawan as he continues speaking directly to the camera.

Wael Sawan

We are focussing the portfolio in areas where we can create value whilst also ensuring that we take opportunities to high grade and all of these decisions are leading to improve delivery across the company.

[Video footage]

Medium close shot of Wael Sawan from waist upwards as he continues to speak.

Wael Sawan

And with that, I’ll hand over to Sinead, who will tell you more about our financial results and financial framework.

[Video footage]

Medium close shot of Wael Sawan and Sinead Gorman speaking directly to the camera.

[Video footage]

Medium close shot of Sinead Gorman from waist upwards as she continues to speak.

Sinead Gorman

Thank you, Wael. Let’s start with adjusted earnings…

[Video footage]

White on-screen text underlined in yellow on a grey transparent box appears.

[Text Displays]

Q4 2024 Adjusted Earnings

$3.7 BILLION

Sinead Gorman

…where we delivered $3.7 billion this quarter.

[Text Displays]

Sinead Gorman. Shell CFO.

Sinead Gorman

Whilst cash flow was strong, adjusted earnings reflected a lower macro and non-cash items such as well write-offs in addition to lower trading and optimisation.

[Video footage]

Close up shot of Sinead Gorman as she continues speaking directly to the camera.

Sinead Gorman

This was partly offset by another quarter of strong operational performance.

[Video footage]

White on-screen text underlined in yellow on a grey transparent box appears.

[Text Displays]

Q4 2024 CFFO

$13.2 BILLION

Sinead Gorman

Our cash flow from operations was some $13.2 billion despite normal Q4 cast outflows…

[Video footage]

Medium close shot of Sinead Gorman from waist upwards as she continues to speak.

Sinead Gorman

…such as the annual payments for the biofuel programmes.

[Video footage]

Close up shot of Sinead Gorman as she continues speaking directly to the camera.

Sinead Gorman

I mentioned the strong operational performance this quarter, but if we take a step back and look at 2024, it was a year of improvements across the organisation.

[Video footage]

Medium close shot of Sinead Gorman from waist upwards as she continues to speak.

Sinead Gorman

Integrated gas and upstream performance improved year-on-year.

[Video footage]

Overhead shot of a ship at sea. Aerial view of a ship spraying out water into the sea creating a rainbow. A large ship is berthed in the background.

Sinead Gorman

At Prelude and QGC, we achieved record availability, resulting in their highest ever production.

[Video footage]

Shot of a power plant. The shot changes to another industrial site.

Sinead Gorman

In chemicals, we saw improved utilisation thanks to the ramp up of all three units at Shell Polymers Monaca.

[Video footage]

Close up shot of Sinead Gorman as she continues speaking directly to the camera.

Sinead Gorman

And in marketing, we achieved the strongest annual adjusted earnings since 2020…

[Video footage]

The camera pans to the right and white on-screen text underlined in yellow on a grey transparent box appears.

[Text Displays]

Marketing Adjusted Earnings

$3.9 BILLION

Sinead Gorman

…at some $3.9 billion, just missing our end 2025 target despite a higher oil price than premised.

[Video footage]

The screen is split into three different images. The image at the top is of a Shell Lubricants lorry driving through a mountainous landscape. The image in the bottom left is of two bottles of Shell Helix City and the image in the bottom right is of a person pouring Shell Helix Extend into a funnel.

Sinead Gorman

Mobility and Lubricants had a great year with Lubricants delivering its highest result.

[Video footage]

Medium close shot of Sinead Gorman from waist upwards as she continues to speak.

Sinead Gorman

All of this enabled us to achieve a full year adjusted earnings total of $23.7 billion…

[Video footage]

The grey outline of the Shell logo ripples on the left side and white on-screen text on a grey transparent box appears.

[Text Displays]

2024 Adjusted Earnings

$23.7 BILLION

Sinead Gorman

…and on cash we generated $54.7 billion of CFFO, our second-best year on record…

[Video footage]

The grey transparent box with white on-screen text fades and a new one appears.

[Text Displays]

2024 CFFO

$54.7 BILLION

Second-highest result ever.

[Video footage]

The grey transparent box with white on-screen text fades and a new one appears.

[Text Displays]

2024 FCF

$39.5 BILLION

Sinead Gorman

…whilst our free cash flow was $39.5 billion, higher than 2023 despite the lower price environment.

[Video footage]

Close up shot of Sinead Gorman as she continues speaking directly to the camera.

Sinead Gorman

Moving to our financial framework…

[Video footage]

The grey outline of the Shell logo ripples on the left side and white on-screen text on a grey transparent box appears.

[Text Displays]

2024 Cash CAPEX

$21.1 BILLION]

Sinead Gorman

Our 2024 cash CAPEX totalled $21.1 billion. We were able to invest for growth across the businesses, whilst also maintaining a high bar for investment.

[Video footage]

Medium close shot of Sinead Gorman from waist upwards as she continues to speak.

Sinead Gorman

Our cash CAPEX range for the full year 2025 is expected to be lower than our 2024 range.

[Video footage]

Close up shot of Sinead Gorman as she continues speaking directly to the camera.

Sinead Gorman

We will provide more specific guidance at our upcoming Capital Markets Day.

[Video footage]

Medium close shot of Sinead Gorman from waist upwards as she continues to speak.

Sinead Gorman

We further strengthened our balance sheet and reduced net debt by $4.7 billion year-on-year…

[Video footage]

The grey outline of the Shell logo ripples on the left side and black on-screen text appears. In the middle of the screen, there’s a bar with numbers that go from 38 to 44. First, the numbers 38, 40, 42 and where 43 would be are highlighted in yellow. Then, the highlighted section slides to the left to highlight only the number 38 and just beyond it.

[Text Displays]

2024 Net Debt

38 40 42 44

$4.7 BILLION

Sinead Gorman

…whilst absorbing additional leases from major projects such as LNG Canada.

[Video footage]

Close up shot of Sinead Gorman as she continues speaking directly to the camera.

Sinead Gorman

We continued to deliver compelling shareholder distributions. Today we announced another $3.5 billion share buyback programme…

[Video footage]

The camera pans to the right and white on-screen text underlined in yellow on a grey transparent box appears.

[Text Displays]

Share buyback programme

$3.5 BILLION

Sinead Gorman

…which we expect to complete by the Q1 results announcement in May.

[Video footage]

The grey outline of the Shell logo ripples on the left side and black on-screen text appears. A graph titled Cumulative announced buybacks over 13 QUARTERS is in the middle of the screen. The y axis shows the numbers 0, 10, 20, 30, 40 and 50. The unit $bn is next to the y axis. The x axis shows the quarters Q4, 2022 Q1, Q2, Q3, Q4, 2023 Q1, Q2, Q3, Q4 and 2024 Q1, Q2, Q3 Q4. A yellow line starting from zero increases across the years up to the number 50, representing $50 bn.

[Text Displays]

Cumulative announced buybacks over

13 QUARTERS

$bn

0 10 20 30 40 50

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2022 2023 2024

Sinead Gorman

This is the thirteenth consecutive quarter in which we have announced $3 billion or more in buybacks.

[Video footage]

Close up shot of Sinead Gorman as she continues speaking directly to the camera.

Sinead Gorman

In addition, earlier today, we also announced a 4% increase in our dividend…

[Video footage]

The camera pans to the right and white on-screen text underlined in yellow on a grey transparent box appears.

[Text Displays]

Dividend per share

+4%

Sinead Gorman

…in line with our progressive dividend policy, delivering even more value to our shareholders. And with that, I’ll hand back to Wael.

[Video footage]

Medium close shot of Wael Sawan from waist upwards as he continues to speak.

Wael Sawan

Thank you, Sinead. 2024 was a strong year for Shell and we made significant progress towards our targets.

[Video footage]

Close up shot of Wael Sawan as he continues speaking directly to the camera.

Wael Sawan

I’m proud of the hard work and dedication demonstrated across the organisation that has driven these achievements.

[Video footage]

Medium close shot of Wael Sawan from waist upwards as she continues to speak.

Wael Sawan

Our operational performance has improved. We’ve brought some outstanding projects on line and we’ve taken final investment decisions that will help strengthen Shell for years to come.

[Video footage]

Close up shot of Wael Sawan as he continues speaking directly to the camera.

Wael Sawan

Putting aside our strong delivery, 2024 was also an important year for us given the external context.

[Video footage]

Medium close shot of Wael Sawan from waist upwards as she continues to speak.

Wael Sawan

We’re pleased with the Dutch court’s ruling in favour of Shell in the MD case. We continue to believe our strategy in the right one for the global energy transition and as a result we will deliver more value with less emissions.

[Video footage]

Close up shot of Wael Sawan as he continues speaking directly to the camera.

Wael Sawan

As we build on the momentum that we have created, we aim to be THE investment case through the energy transition.

[Video footage]

Medium close shot of Wael Sawan from waist upwards as she continues to speak.

Wael Sawan

Now, I’d like to highlight two upcoming events. First, our annual LNG Outlook, which will be published on the 25 February.

[Video footage]

White on-screen text underlined in yellow on a grey transparent box appears.

[Text Displays]

LNG Outlook: February 25^th

Wael Sawan

And then, on the 25 March…

[Video footage]

Shot of an old building in New York flying a Shell Flag. White on-screen text underlined in yellow on a grey transparent box appears.

[Text Displays]

CMD 2025: March 25^th

Wael Sawan

…we will host our Capital Markets Day in New York…

[Video footage]

Close up shot of Wael Sawan as he continues speaking directly to the camera.

Wael Sawan

…where I really hope you can all join us as we outline the next steps of our journey.

[Video footage]

Medium close shot of Wael Sawan from waist upwards as she continues to speak.

Wael Sawan

Thank you.

[Text Displays]

Thank you for your interest in Shell plc. Please understand that an investment in Shell plc securities carries with it the risk that you could sustain losses as a result of your investment. Therefore, an investment in Shell plc securities may not be appropriate for all investors. Accordingly, before investing in our securities we urge you to read our Annua Report and Form 20-F and consider the risk discussed within. You can find our full disclaimer on the next slide in this presentation. You can download the full presentation slides, including the disclaimer, and our �鶹��ý Report and Form 20-F at

Shell plc | January 30^th, 2025

[Disclaimer]

Definitions & cautionary note

This presentation includes certain measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles (GAAP) such as IFRS, including Adjusted Earnings, Adjusted EBITDA, CFFO excluding working capital movements, Cash capital expenditure, free cash flow, Divestment proceeds and Net debt. This information, along with comparable GAAP measures, is useful to investors because it provides a basis for measuring Shell plc’s operating performance and ability to retire debt and invest in new business opportunities. Shell plc’s management uses these financial measures, along with the most directly comparable GAAP financial measures, in evaluating the business performance.

This presentation may contain certain forward-looking non-GAAP measures such as capital expenditure and divestments. We are unable to provide a reconciliation of these forward-looking non-GAAP measures to the most comparable GAAP financial measures because certain information needed to reconcile those non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside the control of Shell, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Shell plc’s consolidated financial statements.

“Adjusted Earnings” is the income attributable to Shell plc shareholders for the period, adjusted for the after-tax effect of oil price changes on inventory and for identified items, and excludes earnings attributable to non-controlling interest. In this presentation, “earnings” refers to “Adjusted Earnings” unless stated otherwise. We define “Adjusted EBITDA“ as “Income/(loss) for the period“ adjusted for current cost of supplies; identified items; tax charge/(credit); depreciation, amortisation and depletion; exploration well write-offs and net interest expense. All items include the non-controlling interest component. In this presentation, “operating expenses”, “costs” and “underlying costs” refer to “Underlying operating expenses” unless stated otherwise. Underlying operating expenses represent “operating expenses excluding identified items”. Operating expenses consist of the following lines in the Consolidated Statement of Income: (i) production and manufacturing expenses; (ii) selling, distribution and administrative expenses; and (iii) research and development expenses. Cash flow from operating activities excluding working capital movements is defined as “Cash flow from operating activities” less the sum of the following items in the Consolidated Statement of Cash Flows: (i) (increase)/decrease in inventories, (ii) (increase)/decrease in current receivables, and (iii) increase/(decrease) in current payables. In this presentation, “capex” refers to “Cash capital expenditure” unless stated otherwise. Cash capital expenditure comprises the following lines from the Consolidated Statement of Cash Flows: Capital expenditure, Investments in joint ventures and associates and Investments in equity securities. Free cash flow is defined as the sum of “Cash flow from operating activities” and “Cash flow from investing activities”. Organic free cash flow is defined as free cash flow excluding inorganic cash capital expenditure, divestment proceeds, and tax paid on divestments. In this presentation, “divestments” refers to “divestment proceeds” unless stated otherwise. Divestment proceeds are defined as the sum of (i) proceeds from sale of property, plant and equipment and businesses, (ii) proceeds from sale of joint ventures and associates, and (iii) proceeds from sale of equity securities. Net debt is defined as the sum of current and non-current debt, less cash and cash equivalents, adjusted for the fair value of derivative financial instruments used to hedge foreign exchange and interest rate risks relating to debt, and associated collateral balances. Reconciliations of the above non-GAAP measures are included in the Shell plc Unaudited Condensed Financial Report for the fourth quarter and the full year ended December 31, 2024. 

The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this presentation “Shell”, “Shell Group” and “Group” are sometimes used for convenience where references are made to Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to entities over which Shell plc either directly or indirectly has control. The term “joint venture”, “joint operations”, “joint arrangements”, and “associates” may also be used to refer to a commercial arrangement in which Shell has a direct or indirect ownership interest with one or more parties. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest. 

This presentation contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of 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 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 “aim”; “ambition”; ‘‘anticipate’’; ‘‘believe’’; “commit”; “commitment”; ‘‘could’’; ‘‘estimate’’; ‘‘expect’’; ‘‘goals’’; ‘‘intend’’; ‘‘may’’; “milestones”; ‘‘objectives’’; ‘‘outlook’’; ‘‘plan’’; ‘‘probably’’; ‘‘project’’; ‘‘risks’’; “schedule”; ‘‘seek’’; ‘‘should’’; ‘‘target’’; ‘‘will’’; “would” and similar terms and phrases. There are a number of factors that could affect the future operations of 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 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, judicial, 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; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak, regional conflicts, such as the Russia-Ukraine war, and a significant cybersecurity breach; and (n) 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 Shell plc’s Form 20-F for the year ended December 31, 2023 (available at /investors/news-and-filings/sec-filings.html 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 - January 30, 2025. Neither 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.

All amounts shown throughout this presentation are unaudited. The numbers presented throughout this presentation may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures, due to rounding. 

Also, in this presentation we may refer to Shell’s “Net Carbon Intensity” (NCI), which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell’s NCI also includes the emissions associated with the production and use of energy products produced by others which Shell purchases for resale. Shell only controls its own emissions. The use of the terms Shell’s “Net Carbon Intensity” or NCI are for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and NCI targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target, as this target is currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target. 

The contents of websites referred to in this presentation do not form part of this presentation.

We may have used certain terms, such as resources, in this presentation that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC.  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. 

The financial information presented in this presentation does not constitute statutory accounts within the meaning of section 434(3) of the Companies Act 2006 (“the Act”). Statutory accounts for the year ended December 31, 2023, were published in Shell’s �鶹��ý Report and Accounts, a copy of which was delivered to the Registrar of Companies for England and Wales, and in Shell’s Form 20-F. The auditor’s report on those accounts was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report and did not contain a statement under sections 498(2) or 498(3) of the Act. The statutory accounts for the year ended December 31, 2024 will be delivered to the Registrar of Companies for England and Wales in due course.

The information in this presentation does not constitute the unaudited condensed consolidated financial statements which are contained in Shell’s fourth quarter 2024 and full year 2024 unaudited results available on www.shell.com/investors.

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[Shell logo] Shell plc | January 30^th, 2025

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