16th October 2013

16th October 2013

Presented by: Sponsored by:

Presenting your speakers

Susie West

Founder and CEO

sharedserviceslink

Christopher Stevens

Global Process Manager

Shell Oil Company

Questions

• Send me your question early and I will put it to the Chris

• Use this opportunity to get the answers/info you seek

• The sooner you send me the question, the more likely it will

be asked

• Remember to stay on for Q&A in the last 10 minutes of the

show

Context

• Shared services organisations are striving to become world

class

• This means looking at service in a way that hasn’t been

examined before and in particular:

– Your talent in your organisation

– Your communication and understanding and awareness with

your customer

– Your technology platform

– Your alignment with company objectives

Finance Operations and the Journey to World Class Performance - the Shell Story

COPYRIGHT OF SHELL INTERNATIONAL LTD

Agenda

What ‘World Class Performance

means to Shell

About Shell

Finance Operations Today

The Journey to World Class

Performance

What next

Summary

COPYRIGHT OF SHELL INTERNATIONAL LTD 8

DEFINITIONS AND CAUTIONARY NOTE

Resources: Our use of the term “resources” in this announcement includes quantities of oil and gas not yet classified as Securities and Exchange Commission of the United

States ("SEC") proved oil and gas reserves or SEC proven mining reserves. Resources are consistent with the Society of Petroleum Engineers 2P and 2C definitions.

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this announcement "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 announcement refer to companies in which 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

announcement, 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 23 per cent shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or

company, after exclusion of all third-party interest.

This announcement contains forward looking statements concerning the financial condition, results of operations and businesses of Shell and the Shell Group. 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 and the Shell Group 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", "seek", "should", "target", "will" and similar terms and phrases. There are a number of

factors that could affect the future operations of Shell and the Shell Group and could cause those results to differ materially from those expressed in the forward looking

statements included in this announcement, 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. All forward looking statements contained in this announcement 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 Shell's 20-F for the year ended 31 December 2011 (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 announcement, March 15, 2012. Neither Shell nor any of its subsidiaries nor the Shell Group

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 announcement.

Shell may have used certain terms, such as resources, in this announcement that the SEC strictly prohibits Shell from including in its filings with the SEC. U.S. investors

are urged to consider closely the disclosure in Shell's 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.

9 COPYRIGHT OF SHELL INTERNATIONAL LTD

ROYAL DUTCH SHELL FINANCE OPERATIONS (FO)


What World Class Performance Means



About Shell

Recognised for

technical innovation

and mega-project

delivery

Producing the

equivalent of 2,300

barrels of oil every

minute

Active in alternative

energies such as

biofuels and wind

Committed to social

and environmental

sustainability

Partners in innovation

with Ferrari F1 team

Selling transport fuel

to some 10 million

customers a day

One of the world’s best-

known brands

Employs 90,000 people in

more than 80 countries




Finance Operations Today


FO today is key to the global finance function’s three-way partnership

FINANCE IN THE BUSINESS

Business Intimacy

FINANCE OPERATIONS

Operational Excellence

FINANCE FUNCTIONAL AREAS

Deep specialist expertise

14

One of the largest & most progressive branded captive finance operations organisations in the world

5,500+ staff, more than half the

finance function

Covering 90+ countries, all RDS

business & functions

Externally benchmarked to world-

class standards

Award-winning for excellence in

improvement & innovation

Embracing sustainable working and

diversity


A globally connected and complementary network enabling a multitude of benefits


FIVE KEY LOCATIONS

MANILA 2004

KUALA LUMPUR 2000

GLASGOW 1998

KRAKOW 2006

CHENNAI 2007

% STAFF & YEAR ESTABLISHED BY

CENTRE

16

Cash application

/allocation, credit

assessments, debt

chasing & recovery,

partner/customer

billing

A process-based organisation DA

TA

Accounts payable,

travel and

entertainment

expenses,

corporate credit

card EX

PEND

ITURE

Financial and

management

reporting and

analysis

REPO

RTIN

G &

ANAL

YSIS

REVE

NUE

Master reference

data quality

assurance and

improvement

Managing trading

settlements and

hydrocarbon

inventory HYDR

OCAR

BON

Direct and indirect

taxation reporting

and filing

TAX


Stretching the boundaries of operational excellence

Data quality assurance

Management information, planning and analysis

Local statutory reporting

Trading settlements

Stock accounting


Delivery on a global scale: One year in numbers...

Handling $95

billion of external

spend

Supporting

52,000 corporate credit

cards

Reconciling $5

billion worth of

fuel card transactions

Accounting for $9

billion in capital and

assets

Processing over $1

trillion of

incoming receipts

Reconciling $7

trillion (absolute) of

assets & liabilities per quarter



Accountable to CFO for performance

Reporting against three tiers of

standardised top-quartile targets

Measuring effectiveness, efficiency, and

compliance

Applying “measure, review & improve”

approach

Embracing Visual Management (VM) in

“grass-roots” operations

Managing performance with top-quartile flight-paths (no Service Level Agreements)

20


Embracing Continuous Improvement (CI) to sustain top-quartile performance

Unlocking significant business value and cost

improvement

Leveraging Lean Sigma methodology; trained

1700+ Green, Black & Master Black Belts

Embedded in day-to-day operations and process

improvement - in a sustainable way

Playing a leading role in the Group’s emerging CI

journey

21


Operating 5,000+ key controls / 60% of RDS controls framework

Performing at 100% design effectiveness, 95% operating effectiveness

Responsible for end-to-end scope: design, deployment, operation, assurance

Enabling transformational improvements

Enhancing and streamlining audit engagements

An authority on managing risk & controls

22


Investing in…

“Sustainable working” initiatives - work-life

balance, resilience

“Goal-zero” safety programmes - road safety,

personal security on late shifts

Local communities – charity visits &

fundraising, Project Better World, Earthwatch,

Shell Ecomarathon

Keeping health, safety, security, environment and social performance (HSSE&SP) high on our agenda

23



The Journey to World Class

Performance

HACKETT BENCHMARK, 2006 “Bottom Quartile”

Emerging from large-scale transformation as an agile, lean and professional team

Response:

People - build use of shared services (from 14 to

50%+), develop capabilities, nurture talent

Processes - standardise, improve, embed

single-point accountability

Systems - consolidate into standard global ERP

platforms, leverage investment

Behaviours - embed a continuous improvement

(CI) mindset and structured ways-of-working


Effectiven

ess

Efficiency

H

H

L

L

40% PEER COST GAP

1Q

1Q

2013

2006

25

Learnings & Recommendations

• Resource and manage as a significant change programme

• Generate joint accountability for success

• Define migration approach upfront

• Apply structured migration methodology; use dedicated resources

• Take pragmatic approach; apply robust consultation & communications

Migration & Implementation

• Secure senior leader buy-in

• Be clear on rationale & objectives

• Create a scalable & sustainable footprint

• Define target activities & functions

• Recognise risk & reward of established scale

Strategy

26

• Implement clear governance framework with well-defined metrics

• Benchmark and calibrate with external connectivity

• Consider sustainability - focus on ‘what’ and ‘how’

• Create structured continuous improvement (CI) capability

• Embed Visual Management (VM) in “grass-roots” operations

Performance Management

• Create a unique culture, with appropriate communications style (gen

X,Y)

• Position as collaborative business partners

• Match competencies with needs

• Integrate with the business to build connectivity, knowledge, credibility

• Implement a two-way talent exchange early

People & Culture

Learnings & Recommendations

27

ROYAL DUTCH SHELL FINANCE OPERATIONS (F0)

What next?


COPYRIGHTOF SHELL INTERNATIONAL LTD

Within our organisation (incl. social media, video technology)

With our business partners

With the outside world

Improving connectivity

29

Extending the reach of Continuous Improvement to maximise business impact

COPYRIGHT OF ROYAL DUTCH SHELL

Predominantly Shared

Service Centre scope

Limited business

knowledge required

Cost focus

End-to-end beyond

finance

Value & cost focus

Extensive business

partnering & knowledge

essential

2008 2012+

30

Releasing untapped value from process & data

Five big end-to-end processes are

key to unlocking significant value

Intelligence and insights from

information and data are largely

unharnessed

A Group-wide initiative aims to

extract this “hidden” value

FO is providing CI, data & process

management expertise


Peter Voser, CEO:

“For a complex

company like Shell,

one way we can

become more

competitive is by

better utilising the

tools we have to do

our work. That is,

improving our

processes and how

we utilise data.”

31

Knowing, developing & retaining our top talent


IN DEMAND

Strong leaders and

supervisors

Specialist and business

knowledge

OUR APPROACH

All staff: exciting jobs,

learning and development,

inspirational leadership,

sustainable & responsible

working

Top talent: dynamic careers,

international mobility, stretch

assignments, development by

senior leaders

32

ROYAL DUTCH SHELL FINANCE OPERATIONS (F0)

Summary


Summary of Shell Success

Embed the change journey as part

of the broader strategic direction

Make it tangible with externally

benchmarked metrics

Manage the talent pipeline. Critical

roles influence perception

Global processes provide strategic

advantage today. Tomorrow they

will provide data & insights to

differentiate performance


Questions?

Presented by: Sponsored by:

Next on sharedserviceslink.com

Webinar programme

14th November

REGISTER NOW


Webinar programme

20th November 25

th November 28

th November


Conference programme

October 2013 November 2013 March 2014

Documents

16th October 2013