Shell PLC Capital Markets Day Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Biraj Borkhataria - RBC Capital Markets - Analyst : Hi, thanks for the presentation. It's Biraj Borkhataria, RBC. The slide that kind of stuck out to me was slide 10, where you addressing head on 20% of your capital employed is basically not generating adequate returns or negative returns in this case. And I mean there's different answers to rectify that issue across the segments that you've outlined. But could you just walk us through in a bit more detail how you expect the path to go from minus 2% ROCE in those segments to a more adequate return? And then the second question is just on kind of market perception. So you've been on this journey since CMD '23, Sprint 1, you could argue is quite successful. Shares have outperformed the peers but largely due to the earnings performance rather than the multiple. So as you're thinking about the journey going forward, is it now the time to start thinking about doing something more radical in terms of value unlock? Or is that more of a discussion for a few years down the line as you develop this track record? Thank you.

Question: Biraj Borkhataria - RBC Capital Markets - Analyst : Hi. Thanks for taking the question. It's Biraj, RBC. It's a specific one on mobility. So the kind of slides you put forward, you show a 50% increase in the gross margin in the last five years, and then going forward it's a underlying increase in the gross margin in absolute terms. If I look at the last five years in terms of kind of bottom line, that gross margin improvement doesn't look like it's come through in the net income number at least. I know volumes are down a bit, but it doesn't look like the volumes explain the story. So could you just help me understand the gap between gross margin and net margin and why that would be different going forward?