Identified items after tax 
             1,410         (20)         (32)         Divestment gains/(losses) 
              (94)      (2,746)        (536)         Impairments 
             (486)        (267)          (7)         Redundancy and restructuring 
                --        (994)           --         Provisions for onerous contracts 
                                                     Fair value accounting of commodity derivatives and 
               365        (864)          838         certain gas contracts 
             (110)          157        (366)         Impact of exchange rate movements on tax balances 
                25        (147)           --         Other 
             1,112      (4,881)        (104)    Impact on CCS earnings 
                                                  Of which: 
             1,112      (1,089)        (331)          Integrated Gas 
               133      (1,344)      (1,154)          Upstream 
             (227)      (2,315)          849          Oil Products 
              (41)         (14)          (2)          Chemicals 
               134        (118)          535          Corporate 
             1,112      (4,871)        (104)    Impact on CCS earnings attributable to shareholders 
                --         (10)           --    Impact on CCS earnings attributable to non-controlling 
                                                 interest 
------------------    ---------    ---------    ----------------------------------------------------------- 
 
 
 
 
 
   Page 17 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 1ST QUARTER 2021 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
 
 
   The identified items categories above may include after-tax impacts of 
identified items of joint ventures and associates which are fully 
reported within "Share of profit of joint ventures and associates" in 
the Consolidated Statement of Income, and fully reported as identified 
items before tax in the table above. Identified items related to 
subsidiaries are consolidated and reported across appropriate lines of 
the Consolidated Statement of Income. Only pre-tax identified items 
reported by subsidiaries are taken into account in the calculation of 
underlying operating expenses (Reference F). 
 
 
 
   Provisions for onerous contracts: Provisions for onerous contracts that 
relate to businesses that Shell has exited or to redundant assets or 
assets that cannot be used. 
 
   Fair value accounting of commodity derivatives and certain gas 
contracts: In the ordinary course of business, Shell enters into 
contracts to supply or purchase oil and gas products, as well as power 
and environmental products. Shell also enters into contracts for tolling, 
pipeline and storage capacity. Derivative contracts are entered into for 
mitigation of resulting economic exposures (generally price exposure) 
and these derivative contracts are carried at period-end market price 
(fair value), with movements in fair value recognised in income for the 
period. Supply and purchase contracts entered into for operational 
purposes, as well as contracts for tolling, pipeline and storage 
capacity, are, by contrast, recognised when the transaction occurs; 
furthermore, inventory is carried at historical cost or net realisable 
value, whichever is lower. As a consequence, accounting mismatches occur 
because: (a) the supply or purchase transaction is recognised in a 
different period, or (b) the inventory is measured on a different basis. 
In addition, certain contracts are, due to pricing or delivery 
conditions, deemed to contain embedded derivatives or written options 
and are also required to be carried at fair value even though they are 
entered into for operational purposes. The accounting impacts are 
reported as identified items. 
 
   Impacts of exchange rate movements on tax balances represent the impact 
on tax balances of exchange rate movements arising on (a) the conversion 
to dollars of the local currency tax base of non-monetary assets and 
liabilities, as well as losses (this primarily impacts the Upstream and 
Integrated Gas segments) and (b) the conversion of dollar-denominated 
inter-segment loans to local currency, leading to taxable exchange rate 
gains or losses (this primarily impacts the Corporate segment). 
 
   Other identified items represent other credits or charges that based on 
Shell management's assessment hinder the comparative understanding of 
Shell's financial results from period to period. 
 
   B.    Adjusted Earnings per share 
 
   Adjusted Earnings per share is calculated as Adjusted Earnings (see 
Reference A), divided by the weighted average number of shares used as 
the basis for basic earnings per share (see Note 3). 
 
   C.    Cash capital expenditure 
 
   Cash capital expenditure represents cash spent on maintaining and 
developing assets as well as on investments in the period. Management 
regularly monitors this measure as a key lever to delivering sustainable 
cash flows. Cash capital expenditure is the sum of the following lines 
from the Consolidated Statement of Cash flows: Capital expenditure, 
Investments in joint ventures and associates and Investments in equity 
securities. 
 
 
 
 
 
 
               Quarters                               $ million 
     Q1 2021      Q4 2020      Q1 2020 
     3,885        5,206        4,263    Capital expenditure 
                                        Investments in joint ventures and 
        69          269          559    associates 
        21           28          147    Investments in equity securities 
     3,974        5,503        4,970    Cash capital expenditure 
                                        Of which: 
     1,015        1,664          882          Integrated Gas 
     1,534        1,654        2,521          Upstream 
       668        1,310          580          Oil Products 
       730          830          846          Chemicals 
        28           46          141          Corporate 
----------    ---------    ---------    -------------------------------------- 
 
 
 
 
 
   Page 18 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 1ST QUARTER 2021 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
 
 
   D.    Return on average capital employed 
 
 
 
   Return on average capital employed ("ROACE") measures the efficiency of 
Shell's utilisation of the capital that it employs. Shell uses two ROACE 
measures: ROACE on a Net income basis and ROACE on a CCS basis excluding 
identified items, both adjusted for after-tax interest expense. With 
effect from the second quarter 2020, the after-tax interest expense 
adjustment is calculated using an applicable blended statutory tax rate. 
This change is implemented to eliminate the distorting volatility 
effects of the effective tax rate. There is no significant impact on 
prior periods comparatives, which therefore have not been revised. 
 
   Both measures refer to Capital employed which consists of total equity, 
current debt and non-current debt. 
 
   ROACE on a Net income basis 
 
   In this calculation, the sum of income for the current and previous 
three quarters, adjusted for after-tax interest expense, is expressed as 
a percentage of the average capital employed for the same period. 
 
 
 
 
 
 
                       $ million                                   Quarters 
                                                           Q1 2021   Q4 2020  Q1 2020 
Income - current and previous three quarters              (15,727)  (21,534)   10,252 
Interest expense after tax - current and previous 
 three quarters                                              2,728     2,822    2,854 
Income before interest expense - current and previous 
three quarters                                            (12,999)  (18,712)   13,106 
Capital employed -- opening                                278,444   286,887  292,797 
Capital employed -- closing                                269,323   266,551  278,444 
Capital employed -- average                                273,883   276,719  285,620 
ROACE on a Net income basis                                 (4.7)%    (6.8)%     4.6% 
--------------------------------------------------------  --------  --------  ------- 
 
 
 
 
 
   ROACE on a CCS basis excluding identified items 
 
   In this calculation, the sum of CCS earnings excluding identified items 
for the current and previous three quarters, adjusted for after-tax 
interest expense, is expressed as a percentage of the average capital 
employed for the same period. 
 
 
 
 
 
 
                        $ million                                    Quarters 
                                                             Q1 2021   Q4 2020  Q1 2020 
CCS earnings - current and previous three quarters          (18,125)  (19,702)   13,256 
Identified items - current and previous three quarters      (23,562)  (24,777)  (1,266) 
Interest expense after tax -- current and previous 
 three quarters                                                2,728     2,822    2,854 
CCS earnings excluding identified items before interest 
expense - current and previous three quarters                  8,165     7,898   17,376 
Capital employed -- average                                  273,883   276,719  285,620 
ROACE on a CCS basis excluding identified items                 3.0%      2.9%     6.1% 
----------------------------------------------------------  --------  --------  ------- 
 
 
   E.    Gearing 
 
   Gearing is a measure of Shell's capital structure and is defined as net 
debt as a percentage of total capital. 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. Management considers this adjustment 
useful because it reduces the volatility of net debt caused by 
fluctuations in foreign exchange and interest rates, and eliminates the 

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04-29-21 0215ET