Month: July 2021

        Thursday 29 July 2021

TURNOVER INCREASES 26% IN THE FIRST HALF OF 2021

AKWEL (FR0000053027, AKW, PEA-eligible), the automotive and HGV equipment and systems manufacturer specialising in fluid management and mechanisms, has posted consolidated turnover of €487.6m in the first half of 2021, up by 26.0% compared to the first half of the previous year. Activity remains down by -13.9% compared to the first half of 2019.

Consolidated turnover (1 January to 30 June 2021)

In € millions – unaudited	2021	2020	Variation	Like-for-like variation(1)
1st quarter	273.3	273.5	-0.1%	+6.3%
2nd quarter	214.3	113.5	+88.7%	+99.7%
1st half-year	487.6	387.0	+26.0%	+33.7%

⁽¹⁾   Comparing like-for-like figures.

On first half, AKWEL saw its turnover increase by 88.7% when comparing published figures (99.7% when taking exchange rates and scope as constants). The group’s quarterly turnover is to be compared with a second quarter of 2020 in which worldwide vehicle production virtually ceased for two months and was down by -21.7% compared to 2019. Procurement difficulties for the main raw materials and electronic components are affecting the organisation of the entire supply chain, resulting in unplanned production stoppages among the manufacturers.

Breakdown of first half turnover by production zone:

• France: €138.8m (+25.6%)
• Europe (excluding France) and Africa: €153.4m (+29.9%)
• North America: €121.8m (+25.1%)
• Asia and the Middle East (including Turkey): €70.4m (+19.2%)
• South America: €3.2m (+64.4%)

On a like-for-like basis, AKWEL continues to outperform its benchmark markets in its two main regions of operation, in Europe and North America.

On 30 June, the AKWEL group had a record positive net cash position, at €95.9m (excluding debts on lease obligations) after disbursement of the dividend.

In view of the tensions observed with raw materials and electronic components, visibility remains particularly poor for the whole international automotive industry in 2021. AKWEL confirms that it is expecting to see activity increasing over the year underway, in view of the favourable base effect for 2020, but remaining below that of the year 2019.

An independent, family-owned group listed on the Euronext Paris Stock Exchange, AKWEL is an automotive and HGV equipment and systems manufacturer specialising in fluid management and mechanisms, offering first-rate industrial and technological expertise in applying and processing materials (plastics, rubber, metal) and mechatronic integration. Operating in 20 countries across every continent, AKWEL employs almost 10,500 people worldwide. Euronext Paris – Compartment B – ISIN: FR0000053027 – Reuters: AKW.PA – Bloomberg: AKW:FP

Attachment

• 2021-07-29_AKWEL_TO-H1-2021_short_EN

SHANGHAI, China, July 30, 2021 (GLOBE NEWSWIRE) — Junshi Biosciences (HKEX: 1877; SSE: 688180), a leading innovation-driven biopharmaceutical company dedicated to the discovery, development and commercialization of novel therapies, announced today that the National Medical Products Administration (NMPA) of China has accepted its supplemental New Drug Application (sNDA) for toripalimab in combination with platinum-containing chemotherapy as the first-line treatment for patients with locally advanced or metastatic esophageal squamous cell carcinoma (ESCC). It is the fifth NDA submitted for toripalimab in China.

The supplemental NDA is based on the JUPITER-06 study (Clinicaltrials.gov identifier: NCT03829969), which is a randomized, double-blind, placebo-controlled Phase III clinical study led by Professor Ruihua Xu from Sun Yat-sen University Cancer Center. A total of 514 patients were enrolled. The co-primary endpoints were progression-free survival (PFS) as assessed by the Blinded Independent Review Committee (BICR) and overall survival (OS). Secondary endpoints included the PFS assessed by investigator, objective response rate (ORR), disease control rate (DCR), duration of response (DOR), and safety. Based on the results of the interim analysis, the Independent Data Monitoring Committee (IDMC) determined that the co-primary endpoints of PFS and OS have crossed the prespecified efficacy boundaries and that toripalimab combined with standard chemotherapy as the first-line treatment significantly prolonged the PFS and OS of patients with advanced or metastatic ESCC, compared with placebo combined with standard chemotherapy. Data from the JUPITER-06 study will soon be presented at the 2021 ESMO Annual Meeting.

“As an innovation-driven biopharma company who follows the ‘In China, For Global’ strategy, Junshi Biosciences focuses on tumor types that are 1) highly prevalent in China; 2) responsive to immunotherapy; and 3) where there is urgent unmet need for better and safer treatments. China is one of the countries with the highest incidence and mortality of esophageal cancer in the world, and there is a clear and substantial unmet clinical need.” Dr. Patricia Keegan, Chief Medical Officer of Junshi Biosciences, said, “The results of JUPITER-06 study showed that compared with chemotherapy, toripalimab in combination with chemotherapy significantly improved both progression-free survival (PFS) and overall survival (OS) for patients with advanced or metastatic ESCC, regardless of their PD-L1 expression status. We will continue to work closely with the NMPA to make this exciting new treatment option available for patients with advanced or metastatic ESCC as soon as possible.”

About Esophageal Cancer
Esophageal cancer is a primary malignant tumor of the esophageal mucosa epithelium, which is one of the most common cancers in the world. According to data released by GLOBOCAN 2020, esophageal cancer was the seventh most common malignant tumor in the world and the sixth leading cause of cancer death in 2020. Approximately 320,000 new esophageal cancer cases and approximately 300,000 deaths due to esophageal cancer occurred in China, with the incidence and death rates ranking fifth and fourth among all malignant tumors, respectively. Esophageal squamous cell carcinoma and adenocarcinoma are the two main histological subtypes of esophageal cancer. Esophageal squamous cell carcinoma is the main subtype in China, accounting for 90% of all esophageal cancer. For patients with advanced or metastatic esophageal squamous cell carcinoma, the current standard first-line treatment is platinum-based chemotherapy, but the 5-year overall survival rate is less than 20%.

About Toripalimab
Toripalimab is the first domestic anti-PD-1 monoclonal antibody obtaining marketing approval in China. So far, more than thirty company sponsored clinical studies covering more than fifteen indications have been conducted globally, including in China and the United States. On 17 December 2018, toripalimab obtained a conditional approval from the National Medical Products Administration (the “NMPA”) for the second-line treatment of patients with unresectable or metastatic melanoma. In December 2020, toripalimab injection was successfully included in the updated National Reimbursement Drug List. In February 2021, the sNDA for toripalimab for the treatment of patients with recurrent or metastatic nasopharyngeal carcinoma after failure of at least two lines of prior systemic therapy has been granted a conditional approval by the NMPA. In the same month, the sNDA for toripalimab combined with cisplatin and gemcitabine as the first-line treatment for patients with locally recurrent or metastatic nasopharyngeal carcinoma was accepted for review by the NMPA. In March 2021, toripalimab received Breakthrough Therapy Designation for the first-line treatment of advanced mucosal melanoma by the NMPA. In April 2021, the sNDA for toripalimab for the treatment of patients with locally advanced or metastatic urothelial carcinoma who failed platinum-containing chemotherapy or progressed within 12 months of neoadjuvant or adjuvant platinum-containing chemotherapy has been granted a conditional approval by the NMPA. Toripalimab has also been included in the Guidelines of the Chinese Society of Clinical Oncology (CSCO) for the Diagnosis and Treatment of Melanoma, the Guidelines of CSCO for the Diagnosis and Treatment of Head and Neck Tumors, the Guidelines of CSCO for the Diagnosis and Treatment of Urothelial Carcinoma and other indications.

In March 2021, Junshi Biosciences started a rolling submission of a Biologics License Application for toripalimab for the second-line treatment of recurrent or metastatic nasopharyngeal carcinoma to the US Food and Drug Administration (“FDA”). Currently, toripalimab has been granted 1 Breakthrough Therapy, 1 Fast Track, and 3 Orphan Drug Designations by the FDA for the treatment of mucosal melanoma, nasopharyngeal carcinoma, and soft tissue sarcoma.

About Junshi Biosciences
Founded in December 2012, Junshi Biosciences is an innovation-driven biopharmaceutical company dedicated to the discovery, development and commercialization of innovative therapeutics. The company has established a diversified R & D pipeline comprising 28 innovative drug candidates and 2 biosimilars, with five therapeutic focus areas covering cancer, autoimmune, metabolic, neurological, and infectious diseases. Junshi Biosciences was the first Chinese pharmaceutical company that obtained marketing approval for anti-PD-1 monoclonal antibody in China. Its first-in-human anti-BTLA antibody for solid tumors was the first in the world to be approved for clinical trials by the FDA and NMPA and its anti-PCSK9 monoclonal antibody was the first in China to be approved for clinical trials by the NMPA. In early 2020, Junshi Biosciences joined forces with the Institute of Microbiology Chinese Academy of Science and Eli Lilly to co-develop JS016 (etesevimab), China’s first neutralizing fully human monoclonal antibody against SARS-CoV-2. JS016 administered with bamlanivimab has received Emergency Use Authorization (EUA) from the US FDA in February 2021 for the treatment of recently diagnosed, mild to moderate COVID-19 in patients who are at a high risk of progressing to severe COVID-19 and/or hospitalization. The JS016 program is a part of our continuous innovation for disease control and prevention of the global pandemic. Junshi Biosciences has over 2,000 employees in the United States (San Francisco and Maryland) and China (Shanghai, Suzhou, Beijing and Guangzhou). For more information, please visit: http://junshipharma.com.

Contact Information

IR Team:
Junshi Biosciences
info@junshipharma.com
+ 86 021-2250 0300

Solebury Trout
Bob Ai
bai@soleburytrout.com
+ 1 646-389-6658

PR Team:
Junshi Biosciences
Zhi Li
zhi_li@junshipharma.com
+ 86 021-6105 8800

Second Quarter 2021 Highlights

• Total revenue of $801.1 million, up 30% year over year
• Product revenue of $298.3 million, up 41% year over year
• Service revenue of $502.8 million, up 24% year over year
• Billings of $960.9 million, up 35% year over year¹
• Deferred revenue of $2.91 billion, up 27% year over year
• GAAP operating margin of 18.4%
• Non-GAAP operating margin of 25.4%¹
• GAAP diluted net income per share of $0.82
• Non-GAAP diluted net income per share of $0.95¹
• Cash flow from operations of $418.2 million
• Free cash flow of $394.7 million, a Fortinet quarterly record¹

SUNNYVALE, Calif., July 29, 2021 (GLOBE NEWSWIRE) — Fortinet® (Nasdaq: FTNT), a global leader in broad, integrated and automated cybersecurity solutions, today announced financial results for the second quarter ended June 30, 2021.

“We delivered our highest quarterly billings growth in over five years, led by the Americas and EMEA regions, while continuing to invest across our product portfolio,” said Ken Xie, Founder, Chairman, and Chief Executive Officer. “Fortinet’s customers are seeing the value in our holistic platform approach, which delivers integrated and automated security across a company’s on-premise network, endpoints, and cloud edges. We are pleased with our strong business momentum heading into the second half of the year and are delighted to once again raise full-year revenue and billings guidance.”

Financial Highlights for the Second Quarter of 2021

• Revenue: Total revenue was $801.1 million for the second quarter of 2021, an increase of 29.7% compared to $617.6 million for the same quarter of 2020.
• Product Revenue: Product revenue was $298.3 million for the second quarter of 2021, an increase of 40.8% compared to $211.9 million for the same quarter of 2020.
• Service Revenue: Service revenue was $502.8 million for the second quarter of 2021, an increase of 23.9% compared to $405.7 million for the same quarter of 2020.
• Billings¹: Total billings were $960.9 million for the second quarter of 2021, an increase of 35.1% compared to $711.5 million for the same quarter of 2020.
• Deferred Revenue: Total deferred revenue was $2.91 billion as of June 30, 2021, an increase of 26.7% compared to $2.29 billion as of June 30, 2020.
• GAAP Operating Income and Margin: GAAP operating income was $147.5 million for the second quarter of 2021, representing a GAAP operating margin of 18.4%. GAAP operating income was $118.8 million for the same quarter of 2020, representing a GAAP operating margin of 19.2%.
• Non-GAAP Operating Income and Margin¹: Non-GAAP operating income was $203.3 million for the second quarter of 2021, representing a non-GAAP operating margin of 25.4%. Non-GAAP operating income was $170.3 million for the same quarter of 2020, representing a non-GAAP operating margin of 27.6%.
• GAAP Net Income and Diluted Net Income Per Share: GAAP net income was $137.5 million for the second quarter of 2021, compared to GAAP net income of $113.8 million for the same quarter of 2020. GAAP diluted net income per share was $0.82 for the second quarter of 2021, based on 167.1 million diluted weighted-average shares outstanding, compared to GAAP diluted net income per share of $0.69 for the same quarter of 2020, based on 165.4 million diluted weighted-average shares outstanding.
• Non-GAAP Net Income and Diluted Net Income Per Share¹: Non-GAAP net income was $158.7 million for the second quarter of 2021, compared to non-GAAP net income of $136.6 million for the same quarter of 2020. Non-GAAP diluted net income per share was $0.95 for the second quarter of 2021, based on 167.1 million diluted weighted-average shares outstanding, compared to $0.83 for the same quarter of 2020, based on 165.4 million diluted weighted-average shares outstanding.
• Cash Flow: Cash flow from operations was $418.2 million for the second quarter of 2021, compared to $247.0 million for the same quarter of 2020.
• Free Cash Flow¹: Free cash flow was $394.7 million for the second quarter of 2021, compared to $216.1 million for the same quarter of 2020.

Guidance

For the third quarter of 2021, Fortinet currently expects:

• Revenue in the range of $800 million to $815 million
• Billings in the range of $940 million to $960 million
• Non-GAAP gross margin in the range of 77.5% to 78.5%
• Non-GAAP operating margin in the range of 24.5% to 25.5%
• Diluted non-GAAP net income per share in the range of $0.90 to $0.95, assuming a non-GAAP effective tax rate of 21%. This assumes a diluted share count of 169 million to 171 million.

For the fiscal year 2021, Fortinet currently expects:

• Revenue in the range of $3.210 billion to $3.250 billion
• Service revenue in the range of $2.045 billion to $2.075 billion
• Billings in the range of $3.870 billion to $3.920 billion
• Non-GAAP gross margin in the range of 77.0% to 79.0%
• Non-GAAP operating margin in the range of 25.0% to 27.0%
• Diluted non-GAAP net income per share in the range of $3.75 to $3.90, assuming a non-GAAP effective tax rate of 21%. This assumes a diluted share count of 168 million to 170 million.

These statements are forward looking and actual results may differ materially. Refer to the Forward-Looking Statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Our guidance with respect to non-GAAP financial measures excludes stock-based compensation, amortization of acquired intangible assets and gain on intellectual property matter. We have not reconciled our guidance with respect to non-GAAP financial measures to the corresponding GAAP measures because certain items that impact these measures are uncertain or out of our control, or cannot be reasonably predicted. Accordingly, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort.

¹ A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures”.

Conference Call Details

Fortinet will host a conference call today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the earnings results. The call can be accessed by dialing (877) 303-6913 (domestic) or (224) 357-2188 (international) with conference ID # 7026909. A live webcast of the conference call and supplemental slides will be accessible from the Investor Relations page of Fortinet’s website at https://investor.fortinet.com and a replay will be archived and accessible at https://investor.fortinet.com/events-and-presentations. A replay of this conference call can also be accessed through August 5, 2021 by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) with conference ID # 7026909.

Third Quarter 2021 Virtual Conference Participation Schedule:

• Oppenheimer’s 24th Annual Technology, Internet & Communications Conference
  August 10, 2021
• KeyBanc Capital Markets’ Technology Leadership Forum
  August 11, 2021
• 2021 Colliers Institutional Investor Conference (Investor Relations Only)
  September 9, 2021

Members of Fortinet’s management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Fortinet’s conference presentations are expected to be available via webcast on the company’s web site. To access the most updated information and listen to the webcast of each event, please visit the Investor Relations page of Fortinet’s website at https://investor.fortinet.com. The schedule is subject to change.

About Fortinet (www.fortinet.com)

Fortinet (Nasdaq: FTNT) secures the largest enterprise, service provider, and government organizations around the world. Fortinet empowers its customers with complete visibility and control across the expanding attack surface and the power to take on ever-increasing performance requirements today and into the future. The Fortinet Security Fabric platform can address the most critical security challenges and protect data across the entire digital infrastructure, whether in networked, application, multi-cloud or edge environments. Both a technology company and a learning organization, the Fortinet Network Security Institute has one of the largest and broadest cybersecurity training programs in the industry. Learn more at https://www.fortinet.com, the Fortinet Blog or FortiGuard Labs.

Copyright © 2021 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiCore, FortiMail, FortiSandbox, FortiADC, FortiAI, FortiAP, FortiAppEngine, FortiAppMonitor, FortiAuthenticator, FortiBalancer, FortiBIOS, FortiBridge, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCASB, FortiCenter, FortiCentral, FortiConnect, FortiController, FortiConverter, FortiCWP, FortiDB, FortiDDoS, FortiDeceptor, FortiDirector, FortiDNS, FortiEDR, FortiExplorer, FortiExtender, FortiFirewall, FortiFone, FortiGSLB, FortiHypervisor, FortiInsight, FortiIsolator, FortiLocator, FortiLog, FortiMeter, FortiMoM, FortiMonitor, FortiNAC, FortiPartner, FortiPenTest, FortiPhish, FortiPortal, FortiPresence , FortiProtect, FortiProxy, FortiRecorder, FortiReporter, FortiSASE, FortiScan, FortiSDNConnector, FortiSIEM, FortiSDWAN, FortiSMS, FortiSOAR, FortiSwitch, FortiTester, FortiToken, FortiTrust, FortiVoice, FortiVoIP, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLCOS and FortiWLM. Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.

FTNT-F

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding demand for our products and services, guidance and expectations around future financial results, including guidance and expectations for the third quarter and full year 2021, statements regarding the momentum in our business and future growth expectations and objectives and statements regarding growth in market demand. Although we attempt to be accurate in making forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based such that actual results are materially different from our forward-looking statements in this release. Important factors that could cause results to differ materially from the statements herein include the following: general economic risks, including those caused by the COVID-19 pandemic; negative impacts from the COVID-19 pandemic on sales, billings, revenue, demand and buying patterns, component supply and ability to manufacture products to meet demand in a timely fashion, and costs such as possible increased costs for shipping and components; global economic conditions, country-specific economic conditions, and foreign currency risks; competitiveness in the security market; the dynamic nature of the security market and its products and services; specific economic risks worldwide and in different geographies, and among different customer segments; uncertainty regarding demand and increased business and renewals from existing customers; uncertainties around continued success in sales growth and market share gains; actual or perceived vulnerabilities in our supply chain, products or services, and any actual or perceived breach of our network or our customers’ networks; longer sales cycles, particularly for larger enterprise, service providers, government and other large organization customers; the effectiveness of our salesforce and failure to convert sales pipeline into final sales; risks associated with successful implementation of multiple integrated software products and other product functionality risks; risks associated with integrating acquisitions and changes in circumstances and plans associated therewith, including, among other risks, changes in plans related to product and services integrations, product and services plans and sales strategies; sales and marketing execution risks; execution risks around new product development and introductions and innovation; litigation and disputes and the potential cost, distraction and damage to sales and reputation caused thereby or by other factors; cybersecurity threats, breaches and other disruptions; market acceptance of new products and services; the ability to attract and retain personnel; changes in strategy; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organizations; technological changes that make our products and services less competitive; risks associated with the adoption of, and demand for, our products and services in general and by specific customer segments, including those caused by the COVID-19 pandemic; competition and pricing pressure; product inventory shortages for any reason, including those caused by the COVID-19 pandemic; risks associated with business disruption caused by natural disasters and health emergencies such as earthquakes, fires, power outages, typhoons, floods, health epidemics and viruses such as the COVID-19 pandemic, and by manmade events such as civil unrest, labor disruption, international trade disputes, international conflicts, terrorism, wars, and critical infrastructure attacks; tariffs, trade disputes and other trade barriers, and negative impact on sales based on geo-political dynamics and disputes and protectionist policies; any political and government disruption around the world, including the impact of any future shutdowns of the U.S. government; and the other risk factors set forth from time to time in our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q and our other filings with the Securities and Exchange Commission (SEC), copies of which are available free of charge at the SEC’s website at www.sec.gov or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this release, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events.

COVID-19 Impact

While the broader implications of the COVID-19 pandemic on our employees and overall financial performance remain uncertain, we have seen certain impacts on our business and operations, results of operations, financial condition, cash flows, liquidity and capital and financial resources. Going forward, the situation is uncertain, rapidly changing and hard to predict, and the COVID-19 pandemic may have a material negative impact on our future periods, including our results for the three months ending September 30, 2021, our annual results for 2021, and beyond. To highlight the uncertainty remaining for the third quarter and full year 2021, it should be noted that, due to customer buying patterns and the efforts of our sales force and channel partners to meet or exceed quarterly quotas, we have historically received a substantial portion of each quarter’s sales orders and generated a substantial portion of each quarter’s billings and revenue during the last two weeks of the quarter. If we experience significant changes in our billings growth rates, it will impact product revenue in the current quarter and FortiGuard and FortiCare service revenues in subsequent quarters, as we sell annual and multi-year service contracts that are recognized ratably over the contractual service term. In addition, the broader implications of the pandemic on our business and operations and our financial results, including the extent to which the effects of the pandemic will impact future results and growth in the cybersecurity industry, remain uncertain. The duration and severity of the economic downturn from the pandemic may negatively impact our business and operations, results of operations, financial condition, cash flows, liquidity and capital and financial resources in a material way. As a result, the effects of the pandemic may not be fully reflected in our results of operations until future periods.

Non-GAAP Financial Measures

We have provided in this release financial information that has not been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). These non-GAAP financial and liquidity measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with peer companies, many of which present similar non-GAAP financial measures to investors.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables below.

Billings (non-GAAP). We define billings as revenue recognized in accordance with GAAP plus the change in deferred revenue from the beginning to the end of the period, less any deferred revenue balances acquired from business combination(s) during the period. We consider billings to be a useful metric for management and investors because billings drive current and future revenue, which is an important indicator of the health and viability of our business. There are a number of limitations related to the use of billings instead of GAAP revenue. First, billings include amounts that have not yet been recognized as revenue and are impacted by the term of security and support agreements. Second, we may calculate billings in a manner that is different from peer companies that report similar financial measures. Management accounts for these limitations by providing specific information regarding GAAP revenue and evaluating billings together with GAAP revenue.

Free cash flow (non-GAAP). We define free cash flow as net cash provided by operating activities minus purchases of property and equipment and excluding any significant non-recurring items, such as proceeds from intellectual property matter. We believe free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after capital expenditures and net of proceeds from intellectual property matter, can be used for strategic opportunities, including repurchasing outstanding common stock, investing in our business, making strategic acquisitions and strengthening the balance sheet. A limitation of using free cash flow rather than the GAAP measures of cash provided by or used in operating activities, investing activities, and financing activities is that free cash flow does not represent the total increase or decrease in the cash and cash equivalents balance for the period because it excludes cash flows from significant non-recurring items, such as proceeds from intellectual property matter, investing activities other than capital expenditures and cash flows from financing activities. Management accounts for this limitation by providing information about our capital expenditures and other investing and financing activities on the face of the cash flow statement and under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” in our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K and by presenting cash flows from investing and financing activities in our reconciliation of free cash flow. In addition, it is important to note that other companies, including companies in our industry, may not use free cash flow, may calculate free cash flow in a different manner than we do or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of free cash flow as a comparative measure.

Non-GAAP operating income and operating margin. We define non-GAAP operating income as operating income plus stock-based compensation, impairment and amortization of acquired intangible assets, less gain on intellectual property matter and, when applicable, other significant non-recurring items in a given quarter, such as non-recurring gains or losses on litigation-related matters. Non-GAAP operating margin is defined as non-GAAP operating income divided by GAAP revenue. We consider these non-GAAP financial measures to be useful metrics for management and investors because they exclude the items noted above so that our management and investors can compare our recurring core business operating results over multiple periods. There are a number of limitations related to the use of non-GAAP operating income instead of operating income calculated in accordance with GAAP. First, non-GAAP operating income excludes the items noted above. Second, the components of the costs that we exclude from our calculation of non-GAAP operating income may differ from the components that peer companies exclude when they report their non-GAAP results of operations. Management accounts for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP operating income and evaluating non-GAAP operating income together with operating income calculated in accordance with GAAP.

Non-GAAP net income and diluted net income per share. We define non-GAAP net income as net income or loss plus the items noted above under non-GAAP operating income and operating margin. In addition, we adjust non-GAAP net income and diluted net income per share for gains or losses on investments in privately held companies and a tax adjustment required for an effective tax rate on a non-GAAP basis, which differs from the GAAP effective tax rate. We define non-GAAP diluted net income per share as non-GAAP net income divided by the non-GAAP diluted weighted-average shares outstanding. We consider these non-GAAP financial measures to be useful metrics for management and investors for the same reasons that we use non-GAAP operating income and non-GAAP operating margin. However, in order to provide a more complete picture of our recurring core business operating results, we include in non-GAAP net income and non-GAAP diluted net income per share, the tax adjustment required resulting in an effective tax rate on a non-GAAP basis, which often differs from the GAAP tax rate. We believe the non-GAAP effective tax rates we use are reasonable estimates of normalized tax rates for our current and prior fiscal years under our global operating structure. The same limitations described above regarding our use of non-GAAP operating income and non-GAAP operating margin apply to our use of non-GAAP net income and non-GAAP diluted net income per share. We account for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP net income and non-GAAP diluted net income per share and evaluating non-GAAP net income and non-GAAP diluted net income per share together with net income or loss and diluted net income per share calculated in accordance with GAAP.

FORTINET, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in millions)
	June 30, 2021				December 31, 2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	1,879.3			$	1,061.8
Short-term investments	1,233.9				775.5
Accounts receivable—net	584.6				720.0
Inventory	149.8				139.8
Prepaid expenses and other current assets	60.6				43.3
Total current assets	3,908.2				2,740.4
LONG-TERM INVESTMENTS	246.6				118.3
PROPERTY AND EQUIPMENT—NET	506.5				448.0
DEFERRED CONTRACT COSTS	347.8				304.8
DEFERRED TAX ASSETS	271.2				245.2
GOODWILL AND OTHER INTANGIBLE ASSETS—NET	127.9				124.6
OTHER ASSETS	150.7				63.2
TOTAL ASSETS	$	5,558.9			$	4,044.5
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	132.0			$	141.6
Accrued liabilities	168.8				149.2
Accrued payroll and compensation	164.7				145.9
Deferred revenue	1,533.0				1,392.8
Total current liabilities	1,998.5				1,829.5
DEFERRED REVENUE	1,372.4				1,212.5
INCOME TAX LIABILITIES	95.2				90.3
LONG-TERM DEBT	987.5				—
OTHER LIABILITIES	55.1				56.2
Total liabilities	4,508.7				3,188.5
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Common stock	0.2				0.2
Additional paid-in capital	1,245.8				1,207.2
Accumulated other comprehensive income (loss)	(0.1		)		0.7
Accumulated deficit	(195.7		)		(352.1		)
Total stockholders’ equity	1,050.2				856.0
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	5,558.9			$	4,044.5

FORTINET, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited, in millions, except per share amounts)
	Three Months Ended								Six Months Ended
	June 30, 2021				June 30, 2020				June 30, 2021				June 30, 2020
REVENUE:
Product	$	298.3			$	211.9			$	539.0			$	404.2
Service	502.8				405.7				972.4				791.1
Total revenue	801.1				617.6				1,511.4				1,195.3
COST OF REVENUE:
Product	115.6				84.4				206.9				160.7
Service	71.3				50.7				136.6				103.1
Total cost of revenue	186.9				135.1				343.5				263.8
GROSS PROFIT:
Product	182.7				127.5				332.1				243.5
Service	431.5				355.0				835.8				688.0
Total gross profit	614.2				482.5				1,167.9				931.5
OPERATING EXPENSES:
Research and development	106.6				82.1				203.8				162.4
Sales and marketing	326.9				253.8				630.9				513.8
General and administrative	34.4				28.9				66.4				57.7
Gain on intellectual property matter	(1.2		)		(1.1		)		(2.3		)		(37.9		)
Total operating expenses	466.7				363.7				898.8				696.0
OPERATING INCOME	147.5				118.8				269.1				235.5
INTEREST INCOME	1.2				4.0				2.3				13.2
INTEREST EXPENSE	(4.5		)		—				(5.8		)		—
OTHER INCOME (EXPENSE)—NET	0.8				0.9				(1.2		)		(7.1		)
INCOME BEFORE INCOME TAXES	145.0				123.7				264.4				241.6
PROVISION FOR INCOME TAXES	7.5				9.9				19.7				23.2
NET INCOME	$	137.5			$	113.8			$	244.7			$	218.4
Net income per share:
Basic	$	0.84			$	0.70			$	1.50			$	1.31
Diluted	$	0.82			$	0.69			$	1.47			$	1.29
Weighted-average shares outstanding:
Basic	163.3				161.6				163.2				166.1
Diluted	167.1				165.4				166.7				169.8

FORTINET, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in millions)
	Six Months Ended
	June 30, 2021				June 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	244.7			$	218.4
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	102.1				93.7
Amortization of deferred contract costs	81.8				64.5
Depreciation and amortization	36.2				35.4
Amortization of investment premium (discounts)	2.9				(0.4		)
Other	0.3				5.5
Changes in operating assets and liabilities:
Accounts receivable—net	135.6				44.5
Inventory	(20.1		)		(17.9		)
Prepaid expenses and other current assets	(16.4		)		(15.2		)
Deferred contract costs	(124.8		)		(91.1		)
Deferred tax assets	(25.8		)		13.6
Other assets	(11.8		)		0.7
Accounts payable	(9.5		)		9.7
Accrued liabilities	21.3				6.5
Accrued payroll and compensation	18.7				8.9
Other liabilities	(1.2		)		5.6
Deferred revenue	300.1				184.0
Net cash provided by operating activities	734.1				566.4
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investments	(1,262.5		)		(399.3		)
Sales of investments	71.4				130.0
Maturities of investments	600.3				548.1
Purchases of property and equipment	(75.6		)		(58.5		)
Investment in privately held company	(75.0		)		—
Payments made in connection with business combination, net of cash acquired	(10.3		)		(3.1		)
Other	—				(0.4		)
Net cash provided by (used in) investing activities	(751.7		)		216.8
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term borrowings, net of discount and underwriting fees	989.4				—
Payments for debt issuance costs	(2.4		)		—
Repurchase and retirement of common stock	(91.6		)		(1,046.0		)
Proceeds from issuance of common stock	15.8				15.7
Taxes paid related to net share settlement of equity awards	(76.0		)		(58.9		)
Other	(0.1		)		(0.1		)
Net cash provided by (used in) financing activities	835.1				(1,089.3		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	817.5				(306.1		)
CASH AND CASH EQUIVALENTS—Beginning of period	1,061.8				1,222.5
CASH AND CASH EQUIVALENTS—End of period	$	1,879.3			$	916.4
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for income taxes—net	$	48.3			$	18.3
Operating lease liabilities arising from obtaining right-of-use assets	$	21.1			$	5.9

Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures
(Unaudited, in millions, except per share amounts)

Reconciliation of net cash provided by operating activities to free cash flow

	Three Months Ended
	June 30, 2021				June 30, 2020
Net cash provided by operating activities	$	418.2			$	247.0
Less: Purchases of property and equipment	(23.5		)		(30.9		)
Free cash flow	$	394.7			$	216.1
Net cash provided by (used in) investing activities	$	(278.2	)		$	212.2
Net cash provided by (used in) financing activities	$	(120.9	)		$	(168.9	)

Reconciliation of GAAP operating income to non-GAAP operating income, operating margin, net income and diluted net income per share

	Three Months Ended June 30, 2021												Three Months Ended June 30, 2020
	GAAP Results				Adjustments				Non-GAAP Results				GAAP Results				Adjustments				Non-GAAP Results
Operating income	$	147.5			$	55.8		(a)	$	203.3			$	118.8			$	51.5		(b)	$	170.3
Operating margin	18.4		%						25.4		%		19.2		%						27.6		%
Adjustments:
Stock-based compensation					53.5												49.6
Amortization of acquired intangible assets					3.5												3.7
Gain on intellectual property matter					(1.2		)										(1.1		)
Litigation-related matter					—												(0.7		)
Tax adjustment					(34.6		)	(c)									(28.7		)	(c)
Net income	$	137.5			$	21.2			$	158.7			$	113.8			$	22.8			$	136.6
Diluted net income per share	$	0.82							$	0.95			$	0.69							$	0.83
Shares used in diluted net income per share calculations	167.1								167.1				165.4								165.4

(a) To exclude $53.5 million of stock-based compensation and $3.5 million of amortization of acquired intangible assets, offset by a $1.2 million gain on intellectual property matter, in the three months ended June 30, 2021.
(b) To exclude $49.6 million of stock-based compensation and $3.7 million of amortization of acquired intangible assets, offset by a $1.1 million gain on intellectual property matter and a $0.7 million adjustment for a litigation-related matter in the three months ended June 30, 2020.
(c) Non-GAAP financial information is adjusted to an effective tax rate of 21% and 22% in the three months ended June 30, 2021 and 2020, respectively, on a non-GAAP basis, which differs from the GAAP effective tax rate.

Reconciliation of total revenue to total billings

	Three Months Ended
	June 30, 2021				June 30, 2020
Total revenue	$	801.1			$	617.6
Add: Change in deferred revenue	159.8				93.9
Total billings	$	960.9			$	711.5

Investor Contact:	Media Contact:
Peter Salkowski	Sandra Wheatley
Fortinet, Inc.	Fortinet, Inc.
408-331-4595	408-391-9408
psalkowski@fortinet.com	swheatley@fortinet.com

The Hague, July 29, 2021

“We are stepping up our shareholder distributions today, increasing dividends and starting share buybacks, while we continue to invest for the future of energy. The quality of Shell’s operational and financial delivery and strengthened balance sheet have given the Board confidence to rebase the dividend per share from Q2 2021 onwards to 24 US cents. We are also launching $2 billion of share buybacks, which is targeted to be completed by the end of this year.

Total shareholder distributions for 2021 are expected to be around the middle of the 20-30% range of CFFO from the previous four quarters. Our progressive dividend policy to grow dividends per share by 4% annually, subject to Board approval, remains unchanged.”

Royal Dutch Shell Chief Executive Officer, Ben van Beurden

STEPPING UP DISTRIBUTIONS TO OUR SHAREHOLDERS

• Another quarter of strong operational and financial delivery, with $14.2 billion CFFO excl. WC and $5.5 billion Adj. Earnings.
• Shell moves to the next phase of the capital allocation framework, consistent with our Powering Progress strategy:
  • Dividend rebased to 24 US cents per share, an increase of over 38% from Q1 2021; maintaining ~4% annual growth
  • Share buybacks targeted at $2 billion in the second half of 2021
  • Targeting AA credit metrics through the cycle; $65 billion net debt milestone retired
• Disciplined cash capex: remains below $22 billion in 2021.

$ million		Adj. Earnings1	Adj. EBITDA (CCS)	CFFO ex. WC	CFFO	Cash capex
Integrated Gas		1,609	3,364	4,350	3,761	880
Upstream		2,469	6,714	5,444	5,056	1,696
Oil Products		1,299	2,608	3,365	2,213	882
Refining & Trading		112	676
Marketing		1,187	1,932
Chemicals		670	1,036	1,225	1,133	895
Corporate		(399)	(101)	(208)	454	30
Less: Non-controlling interest		115	115
RDS	Q2 2021	5,534	13,507	14,176	12,617	4,383
	Q1 2021	3,234	11,490	12,683	8,294	3,974

¹ Income/(loss) attributable to shareholders for Q2 2021 is $3.4 billion. Reconciliation of non-GAAP measures can be found in the unaudited results, available on www.shell.com/investors.

$ billion	Q2 2020	Q3 2020	Q4 2020	Q1 2021	Q2 2021
Divestment proceeds	0.7	0.9	0.2	3.4	1.3
Free cash flow	0.2	7.6	0.9	7.7	9.7
Net debt	77.8	73.5	75.4	71.3	65.7

Q2 2021 FINANCIAL PERFORMANCE DRIVERS

INTEGRATED GAS, RENEWABLES AND ENERGY SOLUTIONS

Key data	Q1 2021	Q2 2021	Q3 2021 outlook
Realised liquids price ($/bbl)	55.74	58.97	—
Realised gas price ($/mscf)	5.41	6.32	—
Production (kboe/d)	967	938	870 – 920
LNG liquefaction volumes (MT)	8.16	7.49	7.4 – 8.0
LNG sales volumes (MT)	16.38	15.92	—

• Adjusted Earnings and CFFO benefited from higher realised prices, partly offset by lower trading and optimisation margins.
• Trading and optimisation contributions to earnings were significantly below average, mainly due to supply disruptions.
• Strong cash conversion, with CFFO excluding working capital of $4.3 billion, benefiting from variation margin inflows in gas and power trading.
• Q3 2021 production and LNG liquefaction volumes outlook is impacted by maintenance activities.

UPSTREAM

Key data	Q1 2021	Q2 2021	Q3 2021 outlook
Realised liquids price ($/bbl)	55.17	62.53	—
Realised gas price ($/mscf)	3.64	4.31	—
Liquids production (kboe/d)	1,579	1,558	—
Gas production (mscf/d)	5,126	4,082	—
Total production (kboe/d)	2,462	2,262	2,100 – 2,250

• Higher Adjusted Earnings than in Q1 2021, driven by higher prices and a one-off release of a non-cash tax provision of approximately $600 million.
• Continued strong cash conversion, with CFFO excluding working capital of $5.4 billion.
• Production 8% below Q1 2021, driven by gas demand seasonality and increased maintenance.
• Q3 2021 total production is expected to be impacted by lower seasonal gas demand.

OIL PRODUCTS

Key data	Q1 2021	Q2 2021	Q3 2021 outlook
Sales volumes (kb/d)	4,164	4,552	4,300 – 5,300
Refining & Trading sales volumes (kb/d)	1,944	2,145	—
Marketing sales volumes (kb/d)	2,220	2,406	—
Refinery utilisation (%)	72	76	73 – 81
Global indicative refining margin ($/bbl)	2.69	4.17	—

• Strong Marketing earnings driven by improved retail unit margins and volumes.
• Improved refining margins as well as higher intake and utilisation than in Q1 2021.
• Trading and optimisation contributions to earnings were average.
• Marginally higher operating expenses than in Q1 2021, driven by recovery in volumes.
• Strong cash conversion with CFFO excluding working capital of $3.4 billion.

CHEMICALS

Key data	Q1 2021	Q2 2021	Q3 2021 outlook
Sales volumes (kT)	3,583	3,609	3,600 – 3,900
Manufacturing plant utilisation (%)	79	82	77 – 85

• Higher base chemicals margins due to higher utilisation, partly offset by lower intermediate margins resulting from lower spreads in key value chains.
• Marginally higher operating expenses than in Q1 2021, driven by maintenance catch-up.
• Strong cash conversion including timing impact of dividends from joint ventures and associates.

CORPORATE

Key data	Q1 2021	Q2 2021	Q3 2021 outlook
Adjusted Earnings ($ million)	(666)	(399)	(600) – (700)

• Corporate segment Adjusted Earnings were a net expense of around $400 million, impacted by favourable movements in deferred tax positions.
• The latest full year estimate for Corporate Adjusted Earnings is lowered to a net expense of $2,300 – 2,600 million. This excludes the impact of currency exchange rate effects.
• Net debt decreased by $5.5 billion to $65.7 billion in Q2 2021 driven by higher cash flow from operations partly offset by a working capital outflow.

UPCOMING INVESTOR EVENTS

28 October 2021

Third quarter 2021 results and dividends

USEFUL LINKS

Q2 2021 results materials and share buyback announcement

Quarterly Databook Q2 2021

Dividend announcement Q2 2021

Q2 results webcast registration

ALTERNATIVE PERFORMANCE (NON-GAAP) MEASURES

This announcement 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 Royal Dutch Shell plc’s operating performance and ability to retire debt and invest in new business opportunities. Royal Dutch Shell plc’s management uses these financial measures, along with the most directly comparable GAAP financial measures, in evaluating the business performance.

This announcement contains a forward-looking Non-GAAP measure for cash capital expenditure. We are unable to provide a reconciliation of this forward-looking Non-GAAP measure to the most comparable GAAP financial measure because certain information needed to reconcile the Non-GAAP measure to the most comparable GAAP financial measure 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 measure 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 estimated in a manner which is consistent with the accounting policies applied in Royal Dutch Shell plc’s consolidated financial statements.

CAUTIONARY STATEMENT

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

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this announcement “Shell”, “Shell Group” and “Group” 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 Royal Dutch 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 announcement refer to entities over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations”, respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. 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 announcement 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”, “could”, “estimate”, “expect”, “goals”, “intend”, “may”, “milestones”, “objectives”, “outlook”, “plan”, “probably”, “project”, “risks”, “schedule”, “seek”, “should”, “target”, “will” 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 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; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak; 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 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 risk factors that may affect future results are contained in Royal Dutch Shell plc’s Form 20-F for the year ended December 31, 2020 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this announcement and should be considered by the reader. Each forward-looking statement speaks only as of the date of this announcement, July 29, 2021. Neither Royal Dutch 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 announcement.

The content of websites referred to in this announcement does not form part of this announcement.

We may have used certain terms, such as resources, in this announcement 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 announcement 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, 2020 were published in Shell’s Annual 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 information in this announcement does not constitute the unaudited condensed consolidated interim financial statements which are contained in Shell’s second quarter 2021 and half year unaudited results available on www.shell.com/investors.

CONTACTS

• Media: International +44 207 934 5550; USA +1 832 337 4355

RALEIGH, N.C., July 29, 2021 (GLOBE NEWSWIRE) — Workplace Options (WPO), a global provider of integrated employee wellbeing solutions, today announced key findings from its wellbeing study.

The study measured 24,000 participants over a three-month period and was focused on employee mental health issues. The findings are part of an initiative that WPO plans to share quarterly to identify global workplace wellbeing trends.

Based on the study, findings reveal that 32 percent of employees contacting the service centers seeking emotional support were experiencing workplace issues. The top three issues identified were workplace stress (45 percent), conflict/tension (24 percent), and performance issues (16 percent).

“We believe this data will help CEOs and other company leaders better understand the issues faced by their employees and, therefore, respond with more relevant solutions,” shares Alan King, President and CEO of WPO. “Our study clearly shows that workplace stress and conflict need greater attention.”

According to WPO’s Vice President of Clinical Crisis & Specialty Services, Dr. Kennette Harris, individuals experiencing workplace issues or conflict may have physical and emotional symptoms that impact their work performance.

“Stomach issues, fatigue, and headaches are common physical symptoms associated with stress, while irritability, anxiety, and apathy are common emotional reactions,” shares Dr. Harris. “Over the long-term, unmanaged stress can contribute to a number of health issues, including cardiovascular disease, anxiety, and depression.”

The study revealed that the most frequently reported emotional symptom was stress (55 percent), followed by anxiety/panic (19 percent).

Decreased productivity and increased absenteeism, which often accompany workplace stress and conflict, are key concerns among employers, especially in countries that are currently struggling with staffing in the wake of COVID-19. WPO’s workplace wellbeing study found that of the employees reporting workplace concerns, one out of three reported they missed at least one day of work as a result. In fact, the average number of workdays missed was 18.

According to WPO’s report, the countries with the highest rates of absenteeism due to workplace issues are the following:

1. United Kingdom: 47%
2. France: 15%
3. United States: 10%

WPO offers several services to support employees dealing with work-related stress, including counseling and mindfulness training. Earlier this year, WPO launched Revive, a program designed to support employees facing burnout or at risk of burnout.

WPO has harnessed data from its service centers as a global service provider and created a sophisticated, interactive, real-time reporting dashboard built especially for clients to analyze and utilize the data to maximize their wellbeing programs.

For more information about WPO’s services, the study, and the client dashboard, visit www.workplaceoptions.com.

About Workplace Options

Workplace Options helps employees balance their work, family, and personal needs to become healthier, happier, and more productive, both personally and professionally. The company’s world-class employee support, effectiveness, and wellbeing services provide information, resources, referrals, and consultation on a variety of issues ranging from dependent care and stress management to clinical services and wellness programs.

Drawing from an international network of credentialed providers and professionals, Workplace Options is the world’s largest integrated employee support and work-life services provider. Service centers in the U.S., Canada, UK, Ireland, Portugal, France, Belgium, UAE, Singapore, Japan, China, India, and Indonesia support more than 70 million employees across 116,000 organizations and more than 200 countries and territories.

To learn more, visit www.workplaceoptions.com.

Marsha Fisher
Marsha.fisher@workplaceoptions.com
800.699.8011 x 71428

A photo accompanying this announcement is available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/38f47c20-5b8c-4af2-b1ce-9a684d0a777c