Income Tax Expense (Benefit)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Royal Dutch Shell PLC, income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Charge in respect of current period	14,044)	18,316)	22,551)	22,519)	16,891)
Adjustment in respect of prior periods	(287)	266)	171)	490)	(507)
Current taxation	13,757)	18,582)	22,722)	23,009)	16,384)
Relating to the origination and reversal of temporary differences, tax losses and credits	(318)	(1,064)	698)	2,295)	(2,030)
Relating to changes in tax rates	19)	(108)	247)	(45)	(60)
Adjustment in respect of prior periods	126)	(344)	(218)	(784)	576)
Deferred taxation	(173)	(1,516)	727)	1,466)	(1,514)
Taxation charge	13,584)	17,066)	23,449)	24,475)	14,870)

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

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Item	Description	The company
Current taxation	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Royal Dutch Shell PLC current taxation decreased from 2012 to 2013 and from 2013 to 2014.
Deferred taxation	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Royal Dutch Shell PLC deferred taxation decreased from 2012 to 2013 but then increased from 2013 to 2014 not reaching 2012 level.
Taxation charge	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Royal Dutch Shell PLC taxation charge decreased from 2012 to 2013 and from 2013 to 2014.

Royal Dutch Shell PLC, components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Decommissioning and other provisions	3,721)	2,007)	1,881)	4,011)	4,311)
Losses carried forward	6,006)	3,087)	1,088)	1,029)	979)
Property, plant and equipment	(7,194)	(1,551)	(273)	(1,761)	(2,463)
Retirement benefits	3,787)	1,338)	366)	368)	375)
Other	1,811)	904)	983)	1,085)	2,159)
Deferred tax assets	8,131)	5,785)	4,045)	4,732)	5,361)
Decommissioning and other provisions	5,167)	6,221)	5,590)	3,333)	3,517)
Losses carried forward	3,310)	5,358)	3,712)	2,219)	1,657)
Property, plant and equipment	(21,041)	(25,582)	(23,639)	(18,310)	(15,909)
Retirement benefits	973)	1,725)	(1,320)	(1,544)	(1,539)
Other	(461)	335)	67)	(347)	(1,114)
Deferred tax liabilities	(12,052)	(11,943)	(15,590)	(14,649)	(13,388)
Net deferred tax assets (liabilities)	(3,921)	(6,158)	(11,545)	(9,917)	(8,027)

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

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Item	Description	The company
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Royal Dutch Shell PLC deferred tax assets increased from 2012 to 2013 and from 2013 to 2014.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Royal Dutch Shell PLC net deferred tax assets (liabilities) increased from 2012 to 2013 and from 2013 to 2014.

Royal Dutch Shell PLC, deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
	Deferred tax assets	8,131)	5,785)	4,045)	4,732)	5,361)
	Deferred tax liabilities	12,052)	11,943)	15,590)	14,649)	13,388)

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Royal Dutch Shell PLC deferred tax assets increased from 2012 to 2013 and from 2013 to 2014.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Royal Dutch Shell PLC deferred tax liabilities decreased from 2012 to 2013 but then slightly increased from 2013 to 2014.

Royal Dutch Shell PLC, adjustments to financial statements

US$ in millions

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Adjustment to Total Assets
Total assets (as reported)	353,116)	357,512)	360,325)	345,257)	322,560)
Less: Noncurrent deferred tax assets, net	8,131)	5,785)	4,045)	4,732)	5,361)
Total assets (adjusted)	344,985)	351,727)	356,280)	340,525)	317,199)
Adjustment to Total Liabilities
Total liabilities (as reported)	180,330)	176,364)	170,398)	174,254)	172,780)
Less: Noncurrent deferred tax liabilities, net	12,052)	11,943)	15,590)	14,649)	13,388)
Total liabilities (adjusted)	168,278)	164,421)	154,808)	159,605)	159,392)
Adjustment to Equity Attributable To Royal Dutch Shell Plc Shareholders
Equity attributable to Royal Dutch Shell plc shareholders (as reported)	171,966)	180,047)	188,494)	169,517)	148,013)
Less: Net deferred tax assets (liabilities)	(3,921)	(6,158)	(11,545)	(9,917)	(8,027)
Equity attributable to Royal Dutch Shell plc shareholders (adjusted)	175,887)	186,205)	200,039)	179,434)	156,040)
Adjustment to Income Attributable To Royal Dutch Shell Plc Shareholders
Income attributable to Royal Dutch Shell plc shareholders (as reported)	14,874)	16,371)	26,592)	30,918)	20,127)
Add: Deferred income tax expense (benefit)	(173)	(1,516)	727)	1,466)	(1,514)
Income attributable to Royal Dutch Shell plc shareholders (adjusted)	14,701)	14,855)	27,319)	32,384)	18,613)

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

Royal Dutch Shell PLC, Financial Data: Reported vs. Adjusted

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Royal Dutch Shell PLC, adjusted financial ratios

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Net Profit Margin
Reported net profit margin	3.53%	3.63%	5.69%	6.58%	5.47%
Adjusted net profit margin	3.49%	3.29%	5.85%	6.89%	5.06%
Total Asset Turnover
Reported total asset turnover	1.19	1.26	1.30	1.36	1.14
Adjusted total asset turnover	1.22	1.28	1.31	1.38	1.16
Financial Leverage
Reported financial leverage	2.05	1.99	1.91	2.04	2.18
Adjusted financial leverage	1.96	1.89	1.78	1.90	2.03
Return on Equity (ROE)
Reported ROE	8.65%	9.09%	14.11%	18.24%	13.60%
Adjusted ROE	8.36%	7.98%	13.66%	18.05%	11.93%
Return on Assets (ROA)
Reported ROA	4.21%	4.58%	7.38%	8.96%	6.24%
Adjusted ROA	4.26%	4.22%	7.67%	9.51%	5.87%

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Royal Dutch Shell PLC adjusted net profit margin ratio deteriorated from 2012 to 2013 but then slightly improved from 2013 to 2014.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Royal Dutch Shell PLC adjusted total asset turnover ratio deteriorated from 2012 to 2013 and from 2013 to 2014.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Royal Dutch Shell PLC adjusted financial leverage ratio increased from 2012 to 2013 and from 2013 to 2014.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Royal Dutch Shell PLC adjusted ROE deteriorated from 2012 to 2013 but then slightly improved from 2013 to 2014.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Royal Dutch Shell PLC adjusted ROA deteriorated from 2012 to 2013 but then slightly improved from 2013 to 2014.

Royal Dutch Shell PLC, Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions)
Income attributable to Royal Dutch Shell plc shareholders	14,874)	16,371)	26,592)	30,918)	20,127)
Revenue	421,105)	451,235)	467,153)	470,171)	368,056)
Profitability Ratio
Net profit margin¹	3.53%	3.63%	5.69%	6.58%	5.47%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted income attributable to Royal Dutch Shell plc shareholders	14,701)	14,855)	27,319)	32,384)	18,613)
Revenue	421,105)	451,235)	467,153)	470,171)	368,056)
Profitability Ratio
Adjusted net profit margin²	3.49%	3.29%	5.85%	6.89%	5.06%

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

¹ Net profit margin = 100 × Income attributable to Royal Dutch Shell plc shareholders ÷ Revenue
= 100 × 14,874 ÷ 421,105 = 3.53%

² Adjusted net profit margin = 100 × Adjusted income attributable to Royal Dutch Shell plc shareholders ÷ Revenue
= 100 × 14,701 ÷ 421,105 = 3.49%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Royal Dutch Shell PLC adjusted net profit margin ratio deteriorated from 2012 to 2013 but then slightly improved from 2013 to 2014.

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions)
Revenue	421,105)	451,235)	467,153)	470,171)	368,056)
Total assets	353,116)	357,512)	360,325)	345,257)	322,560)
Activity Ratio
Total asset turnover¹	1.19	1.26	1.30	1.36	1.14
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenue	421,105)	451,235)	467,153)	470,171)	368,056)
Adjusted total assets	344,985)	351,727)	356,280)	340,525)	317,199)
Activity Ratio
Adjusted total asset turnover²	1.22	1.28	1.31	1.38	1.16

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 421,105 ÷ 353,116 = 1.19

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 421,105 ÷ 344,985 = 1.22

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Royal Dutch Shell PLC adjusted total asset turnover ratio deteriorated from 2012 to 2013 and from 2013 to 2014.

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions)
Total assets	353,116)	357,512)	360,325)	345,257)	322,560)
Equity attributable to Royal Dutch Shell plc shareholders	171,966)	180,047)	188,494)	169,517)	148,013)
Solvency Ratio
Financial leverage¹	2.05	1.99	1.91	2.04	2.18
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	344,985)	351,727)	356,280)	340,525)	317,199)
Adjusted equity attributable to Royal Dutch Shell plc shareholders	175,887)	186,205)	200,039)	179,434)	156,040)
Solvency Ratio
Adjusted financial leverage²	1.96	1.89	1.78	1.90	2.03

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

¹ Financial leverage = Total assets ÷ Equity attributable to Royal Dutch Shell plc shareholders
= 353,116 ÷ 171,966 = 2.05

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted equity attributable to Royal Dutch Shell plc shareholders
= 344,985 ÷ 175,887 = 1.96

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Royal Dutch Shell PLC adjusted financial leverage ratio increased from 2012 to 2013 and from 2013 to 2014.

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions)
Income attributable to Royal Dutch Shell plc shareholders	14,874)	16,371)	26,592)	30,918)	20,127)
Equity attributable to Royal Dutch Shell plc shareholders	171,966)	180,047)	188,494)	169,517)	148,013)
Profitability Ratio
ROE¹	8.65%	9.09%	14.11%	18.24%	13.60%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted income attributable to Royal Dutch Shell plc shareholders	14,701)	14,855)	27,319)	32,384)	18,613)
Adjusted equity attributable to Royal Dutch Shell plc shareholders	175,887)	186,205)	200,039)	179,434)	156,040)
Profitability Ratio
Adjusted ROE²	8.36%	7.98%	13.66%	18.05%	11.93%

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

¹ ROE = 100 × Income attributable to Royal Dutch Shell plc shareholders ÷ Equity attributable to Royal Dutch Shell plc shareholders
= 100 × 14,874 ÷ 171,966 = 8.65%

² Adjusted ROE = 100 × Adjusted income attributable to Royal Dutch Shell plc shareholders ÷ Adjusted equity attributable to Royal Dutch Shell plc shareholders
= 100 × 14,701 ÷ 175,887 = 8.36%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Royal Dutch Shell PLC adjusted ROE deteriorated from 2012 to 2013 but then slightly improved from 2013 to 2014.

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions)
Income attributable to Royal Dutch Shell plc shareholders	14,874)	16,371)	26,592)	30,918)	20,127)
Total assets	353,116)	357,512)	360,325)	345,257)	322,560)
Profitability Ratio
ROA¹	4.21%	4.58%	7.38%	8.96%	6.24%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted income attributable to Royal Dutch Shell plc shareholders	14,701)	14,855)	27,319)	32,384)	18,613)
Adjusted total assets	344,985)	351,727)	356,280)	340,525)	317,199)
Profitability Ratio
Adjusted ROA²	4.26%	4.22%	7.67%	9.51%	5.87%

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

¹ ROA = 100 × Income attributable to Royal Dutch Shell plc shareholders ÷ Total assets
= 100 × 14,874 ÷ 353,116 = 4.21%

² Adjusted ROA = 100 × Adjusted income attributable to Royal Dutch Shell plc shareholders ÷ Adjusted total assets
= 100 × 14,701 ÷ 344,985 = 4.26%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Royal Dutch Shell PLC adjusted ROA deteriorated from 2012 to 2013 but then slightly improved from 2013 to 2014.

Royal Dutch Shell PLC (NYSE:RDSA)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Royal Dutch Shell PLC, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Royal Dutch Shell PLC, Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)