We provide services to various segments—cargo and passenger transportation, agriculture, mining, railways, and industry—and invest in solutions for intelligent fleet management and financial management, such as Shell Box Empresas, a 100% digital platform that is free of charge and uses proprietary technology, and 'Expers', a product developed in partnership with Endered.

In May 2020, we started operations at the new terminal in the Itaqui port complex in the Industrial Complex of São Luís (MA). These activities will increase the supply of fuels to the North and Northeast of Brazil and reduce logistics costs, directly benefiting the supply in Maranhão, Amazonas, Piauí, Pará, Tocantins, and Mato Grosso.

In total, nearly R$200 million was invested in the largest private base we have ever built and operated, which should become the primary site for importing oil products and exporting ethanol, interconnecting private refiners in Brazil and abroad. The structure has the capacity to handle 1.5 billion liters of fuel per year and can store up to 80 million liters of gasoline A and Diesel S10 and S500. It also provides positive socio-economic impacts, generating almost 1,000 direct jobs and 500 indirect jobs during the construction period, as well as 50 direct jobs linked to the operation and preferred hiring of materials and services from the region.

In the aviation sector, we supply the main airlines and business aviation customers who show their loyalty through the Shell Aeroclass program, which recognizes pilots and mechanics for choosing the best products. Through the app, aircraft fueling can be scheduled, ensuring service at the desired time and greater agility throughout the process. In addition, by scheduling and refueling with Shell fuels, the pilot or mechanic earns points that can be redeemed for prizes, experiences, discounts, and even cash—all directly on our partner's website.

In retail, we market fuels at Shell service stations all over Brazil and in Argentina through reseller partners. We also invest to increase the portfolio by taking differentiated products to the service stations, such as Shell V-Power and Shell Evolux. Seeking the best result for retailers, we invest in research to improve our offerings and develop differentiated products, encompassing all stages of consumer interaction. These include reinforcing at each harvest the Shell brand’s Humanology concept, which offers the best of technology for the service of people by delivering a differentiated experience and more human service, while always seeking customer satisfaction.

The concept gained even more relevance during the COVID-19 pandemic, when several actions were taken to combat the spread of the disease such as the “Abastecidos de Música” ("Fueled with Music") campaign, which motivated anonymous people and independent artists to give musical performances from their homes, helping neighbors to rediscover the pleasure in their household routines. The host of this action was singer Ivete Sangalo, who instructed people to post their videos with the hashtag #AbastecidosDeMusica and share a little bit of their story. Five people were selected, and their stories were told throughout Brazil. They also participated in a livestream with Ivete Sangalo on her Instagram account.

This initiative shows that self-care also needs to extend to emotional and mental aspects. From the beginning of the pandemic, we ran the “Abastecidos de Cuidados” ("Fueled with Care") campaign featuring various actions—from communication about hygiene to encouraging the use of the Shell Box app for payment at stations to provide reduced physical contact. The Shell Box is another example that represents the Humanology concept (see more here).

Truck drivers also receive special attention from Shell. Through the Clube Irmão Caminhoneiro Shell , Shell aims to be the best travel buddy on the road and in the lives of these professionals. The initiative has more than 350,000 members throughout the country, and in May 2020, as part of the "Highway Heroes" promotion, we raffled off a brand-new Mercedes Benz Actros 2546 truck. For every R$200 spent in fueling at Shell gas stations, participants won a lucky shell. Fueling with Shell Evolux Diesel was worth double.

In Argentina, we produce and sell lubricants, grease, and specialty products for vehicles and agricultural and industrial equipment. In this segment, we focus on the changes in each sector in order to provide quality products that ensure greater efficiency. To learn more, click here. In 2021, Shell was once again recognized as the world's leading supplier of lubricants, according to Kline & Company's 2020 Market Analysis and Assessment report by Global Lubricants. The report covers the main markets, segments, and product types. Shell products have maintained their global leadership position for 14 consecutive years in the three categories of lubricants evaluated: consumer automotive, commercial automotive, and industrial.

Also in our neighboring country, our refinery in Buenos Aires has the capacity to process around 4,800,000 m³ of crude oil per year and to store up to 850,000 m³. The refinery has gained prominence for its management and operational processes, positioning us as one of the best in the industry in South America. The operation was the first of its kind in Latin America to have an ISO 14000 certified environmental management system.

Another characteristic of the operation in Argentina is the marketing of fuels for all types of seagoing vessels. The products in this segment meet the specifications of the International Maritime Organization (IMO 2020) and aim to provide our customers with a competitive advantage that allows them to be at the forefront of their business.

In 2020, we announced a plan for investments in our assets in Argentina, which involves the allocation of US$715 million over the next three years for the development of a new fuel production line; an increase in processing capacity; and several projects to modernize units and processes and improve energy efficiency. We also plan to expand the network of service stations and other industrial segments, as well as logistics and sales projects for Argentina and the region.

The investment plan aims to generate more than 4,000 new jobs in the country and will have an impact on small- and medium-sized domestic companies, since more than 3,000 new contracts are expected to be signed.

Intelligence

The operation required to meet the geographical challenges imposed by wide distribution coverage is complex, and it has created the need for assertive solutions in which technology plays a key role in monitoring the volume of actions that are typical of this operation.

To monitor the different technologies embedded in our contracted fleets of trucks and ferries—monitoring cameras, fatigue sensors, and tracking devices, among others—we created an Operational Control Center (CCO), which receives signals and information from all these devices, enabling the implementation of corrective, preventive, and predictive actions.

A highlight of these technologies are the fatigue sensors, equipment that registers signs of driver fatigue based on behavioral analysis and information from vehicle movements and road conditions. Upon identification of risky driving behavior, audible alerts are automatically triggered in the vehicle’s cab to draw the driver's attention to the importance of safety and focus while driving.

Other procedures include monitoring drivers' journeys and continuous driving, speeding, sudden braking, and travel flows, as well as standardizing and handling the alerts generated. The Center has access to reports on all alerts, and these documents are used to guide strategic actions in the quest for Zero Accidents (see more here).

By centralizing all the data from each link of this network, we generate insights based on proprietary information that support decision making in both the short and long term. This allows us to guarantee the quality and integrity of the product throughout the journey, including punctuality and end-to-end traceability up to delivery.

Proximity

Shell Select convenience stores have always enhanced our customers' experience when they stop for gas at service stations. They also contributed to the formation of Grupo Nós, a joint venture we established in the 2019/2020 harvest with FEMSA Comércio, which is a multinational leader in the convenience and proximity stores segment in Latin America.

Our goal is to lead the Brazilian convenience and proximity market and be recognized as the most reliable chain. The convenience segment at fuel stations has high growth potential in Brazil, a country with one of the lowest penetration rates in the world (less than 20%).

With an eye on this opportunity, in recent years we have developed new generations of Shell Select stores with robust investments focused on simplified operations, lower operating costs, and a more intuitive customer experience. This resulted in an average increase in sales of approximately 20% compared to the previous format.

With this joint venture, the Shell Select brand will further strengthen its value proposition to franchisees and consumers with a broader offering, synergies between operating models, digital transformation, and efficiency in logistics. Convenience stores will continue to operate exclusively at Shell service stations under franchise or owned stores

In the proximity segment, we plan to grow through the OXXO markets, well known for its more than 19,000 stores spread across Latin America. The first OXXO market in Brazil opened its doors in December in the Campinas city center (SP) with a more competitive structure and more variety. It offers bakery items (with in-house production of bread), confectionary, beverages, groceries, and hygiene and cleaning products, all of which are restocked daily. The refrigerators have a walk- in cooler mechanism, through which the products are replaced from behind, ensuring that the beverages are always chilled for consumers, one of the main differentiators in the market. It also has a complete food service, with a great variety of snacks, sandwiches, pizzas, ready-to-eat meals, desserts, and hot and cold beverages.

As a company that offers convenience and proximity to Brazilians' shopping routine, Grupo Nós will boost job creation during the economic and labor market recovery.