South32 Ltd. · ASX:S32
South32 — Shareholder Meeting (November 2015)
38 slides from South32's shareholder meeting presentation, Nov 18, 2015
Slide 1: South32 Annual General Meeting
For personal use only SOUTH32 ANNUAL GENERAL MEETING • DAVID CRAWFORD, AO • CHAIRMAN • 18 NOVEMBER 2015 • PERTH, WESTERN AUSTRALIA
Slide 2: Emergency Procedure
For personal use only • EMERGENCY PROCEDURE SLIDE 2
Slide 3: Please turn mobile phones off or switch to silent
For personal use only PLEASE TURN MOBILE PHONES OFF OR SWITCH TO SILENT
Slide 4: Welcome to Country
For personal use only WELCOME TO COUNTRY BARRY MCGUIRE
Slide 5: Important Notices
• IMPORTANT NOTICES • The purpose of this presentation is to provide general information about South32 Limited. This presentation should be read in conjunction with the Annual Financial Report as at 30 June 2015 and the other announcements made by South32 in accordance with its continuous disclosure
Slide 6: Introducing Our Board and Company Secretary
For personal use only • INTRODUCING OUR BOARD AND COMPANY SECRETARY David Crawford, AO Dr Futhi Mtoba CHAIRMAN Graham Kerr Dr Xolani Mkhwanazi CHIEF EXECUTIVE OFFICER Frank Cooper, AO Peter Kukielski CHAIR OF THE RISK AND AUDIT COMMITTEE Wayne Osborn Nicole Duncan CHAIR OF THE REMUNERATION COMMITTEE
Slide 7: Introducing Our Executive Committee
For personal use only • INTRODUCING OUR EXECUTIVE COMMITTEE Graham Kerr Ricus Grimbeek CHIEF EXECUTIVE OFFICER PRESIDENT AND CHIEF OPERATING OFFICER, AUSTRALIA Dale Calhoun Brendan Harris CHIEF PEOPLE OFFICER CHIEF FINANCIAL OFFICER Nicole Duncan Paul Harvey CHIEF LEGAL OFFICER AND COMPANY SECRETARY
Slide 8: Conduct of Meeting
For personal use only • CONDUCT OF MEETING SLIDE 8
Slide 9: Chairman's Address
For personal use only DAVID CRAWFORD, AO CHAIRMAN’S ADDRESS
Slide 10: Our Story So Far
For personal use only • OUR STORY SO FAR • South32 has had a truly historic beginning • 18 May 2015 – Listed in Australia, Johannesburg and London • 25 May 2015 – Demerger from BHP Billiton • 24 August 2015 – Annual Results for FY2015 • We are proud of our heritage • High quality, well maintained po
Slide 11: Setting the Agenda
For personal use only • SETTING THE AGENDA OUR PURPOSE Our purpose is to make a difference by developing natural resources, improving people’s lives now and for generations to come. We are trusted by our owners and partners to realise the potential of their resources. OUR STRATEGY Our strategy is to
Slide 12: The Right People and Governance
For personal use only • THE RIGHT PEOPLE AND GOVERNANCE • Our people are fundamental to achieving our ambitions • Our Board has collective experience in mining, refining, smelting, mineral processing and project development • Our Executive team is focused on sector- leading total shareholder returns
Slide 13: Running Our Business Differently
For personal use only • RUNNING OUR BUSINESS DIFFERENTLY Our focus is on maximising total shareholder returns Our regional model is a key enabler We have a simple approach to capital management We are committed to safe and reliable operations We intend to distribute a minimum of 40 per cent of under
Slide 14: The Road Ahead
For personal use only • THE ROAD AHEAD SLIDE 14
Slide 15: CEO's Presentation
For personal use only GRAHAM KERR CEO’S PRESENTATION
Slide 16: Hitting the Ground Running
For personal use only • HITTING THE GROUND RUNNING Fast tracking our regional model Putting the right teams in place MAXIMISING Right sizing our systems and processes RETURNS FOR SHAREHOLDERS Driving organisational and cultural change Implementing a simple business strategy SLIDE 16
Slide 17: Safety Is Our Core Value
For personal use only • SAFETY IS OUR CORE VALUE • Safety isn’t just another priority – it is our core value • A single fatality is unacceptable and not what South32 is about • All of our people must return home safe and well to their families at the end of their shift • To make a step change in our
Slide 18: Strong Performance
For personal use only • STRONG PERFORMANCE PRO FORMA EBIT +56% TO US$1B STRONG BALANCE SHEET RECORD PRODUCTION NET DEBT US$196M PRO FORMA UNDERLYING (AS OF Q1 FY2016) EARNINGS +41% TO US$575M SIMPLE STRATEGY TO REDUCE CONTROLLABLE SUSTAINING CAPITAL MAXIMISE RETURN ON COSTS BY US$350M P.A. BY EXPEND
Slide 19: A Simple Strategy to Maximise Returns
For personal use only • A SIMPLE STRATEGY TO MAXIMISE RETURNS OUR STRATEGY Our strategy is to invest in high quality metals and mining operations where our distinctive capabilities and regional model enable us to stretch performance in a sustainable way. By maintaining financial discipline and conti
Slide 20: Our Regional Model Is a Key Enabler
For personal use only • OUR REGIONAL MODEL IS A KEY ENABLER Corporate functions1 Australian Region African Region Reduce layers of management Worsley Illawarra Alumina Metallurgical Coal Aggregate functional support South Africa Mozal Aluminium Aluminium Foster relationships Australia Cerro Manganes
Slide 21: Creating Value
For personal use only • CREATING VALUE Our operating model is delivering results • Our operations are being run differently • Our financial approach is disciplined • Our people are talented and motivated SLIDE 21
Slide 22: Formal Business
For personal use only DAVID CRAWFORD, AO FORMAL BUSINESS
Slide 23: Resolution: Financial, Directors' and Auditor's Reports
For personal use only • RESOLUTION 1 • FINANCIAL REPORT, DIRECTORS’ REPORT AND AUDITOR’S REPORT • To receive and consider the Financial Report, Directors’ Report and Auditor’s Report, as set out in the Company’s Annual Report for the financial year ended 30 June 2015. SLIDE 23
Slide 24: Resolution: Election of Xolani Mkhwanazi
For personal use only • RESOLUTION 2 • ELECTION OF XOLANI MKHWANAZI AS A DIRECTOR • To consider and, if thought fit, pass the following resolution as an ordinary resolution: • “That Dr Xolani Mkhwanazi, who was appointed as Director on 2 July 2015 and who ceases to hold office in accordance with rul
Slide 25: Resolution 2: Proxy Votes Received
For personal use only • RESOLUTION 2: PROXY VOTES RECEIVED • RESOLUTION 2: ELECTION OF DIRECTOR – XOLANI MKHWANAZI FOR 2,770,660,079 96.79% OPEN 45,882,354* 1.61% AGAINST 45,892,931 1.60% ABSTAIN 8,708,264 *Open votes includes 35,988,001 votes held by the Chairman / Board SLIDE 25
Slide 26: Resolution: Re-election of David Crawford
For personal use only • RESOLUTION 3 • RE-ELECTION OF DAVID CRAWFORD AS A DIRECTOR • To consider and, if thought fit, pass the following resolution as an ordinary resolution: • “That Mr David Crawford is re-elected as a Director of the Company.” SLIDE 26
Slide 27: Resolution 3: Proxy Votes Received
For personal use only • RESOLUTION 3: PROXY VOTES RECEIVED • RESOLUTION 3: RE-ELECTION OF DIRECTOR – DAVID CRAWFORD FOR 2,779,197,217 97.06% OPEN 45,451,617* 1.59% AGAINST 38,861,318 1.35% ABSTAIN 7,601,959 *Open votes includes 35,571,009 votes held by the Chairman / Board SLIDE 27
Slide 28: Resolution: Appointment of Auditor
For personal use only • RESOLUTION 4 • APPOINTMENT OF AUDITOR • To consider and, if thought fit, pass the following resolution as an ordinary resolution: • “That for the purposes of section 327B of the Corporations Act 2001 (Cth) and for all other purposes, KPMG, having been nominated by a sharehold
Slide 29: Resolution 4: Proxy Votes Received
For personal use only • RESOLUTION 4: PROXY VOTES RECEIVED • RESOLUTION 4: APPOINTMENT OF AUDITOR FOR 2,800,249,596 97.78% OPEN 45,864,558* 1.60% AGAINST 17,910,975 0.62% ABSTAIN 7,077,115 *Open votes includes 35,899,523 votes held by the Chairman / Board SLIDE 29
Slide 30: Resolution: Adoption of the Remuneration Report
For personal use only • RESOLUTION 5 • ADOPTION OF THE REMUNERATION REPORT • To consider and, if thought fit, pass the following non-binding resolution as an ordinary resolution: • “That the Remuneration Report for the year ended 30 June 2015 be adopted.” • Votes on this resolution are advisory only
Slide 31: Resolution 5: Proxy Votes Received
For personal use only • RESOLUTION 5: PROXY VOTES RECEIVED • RESOLUTION 5: ADOPTION OF THE REMUNERATION REPORT FOR 2,650,954,837 93.08% OPEN 45,177,748* 1.59% AGAINST 151,884,829 5.33% ABSTAIN 12,969,412 *Open votes includes 35,322,857 votes held by the Chairman / Board SLIDE 31
Slide 32: Resolution: Grant of Awards to Executive Director
For personal use only • RESOLUTION 6 • GRANT OF AWARDS TO EXECUTIVE DIRECTOR • To consider and, if thought fit, pass the following resolution as an ordinary resolution: • “That approval be given, for the purposes of ASX Listing Rule 10.14 and for all other purposes, to grant equity awards to the Chi
Slide 33: Resolution 6: Proxy Votes Received
For personal use only • RESOLUTION 6: PROXY VOTES RECEIVED • RESOLUTION 6: GRANT OF AWARDS TO EXECUTIVE DIRECTOR FOR 2,706,534,887 94.67% OPEN 45,043,668* 1.57% AGAINST 107,512,637 3.76% ABSTAIN 12,048,377 *Open votes includes 35,290,785 votes held by the Chairman / Board SLIDE 33
Slide 34: Resolution 7: Approval of Leaving Entitlements
For personal use only • RESOLUTION 7: • APPROVAL OF LEAVING ENTITLEMENTS • To consider and, if thought fit, pass the following resolution as an ordinary resolution: • “That for a period of 3 years commencing from the date this resolution is passed approval be given for all purposes, including Part 2
Slide 35: Resolution 7: Proxy Votes Received
For personal use only • RESOLUTION 7: PROXY VOTES RECEIVED • RESOLUTION 7: APPROVAL OF LEAVING ENTITLEMENTS FOR 2,756,416,473 96.44% OPEN 44,967,046* 1.58% AGAINST 56,531,041 1.98% ABSTAIN 13,228,941 *Open votes includes 35,343,026 votes held by the Chairman / Board SLIDE 35
Slide 36: Please complete your voting cards
For personal use only Please complete your voting cards
Slide 37: Meeting Close
For personal use only MEETING CLOSE • SOUTH32 ANNUAL GENERAL MEETING • 18 NOVEMBER 2015 • PERTH, WESTERN AUSTRALIA
Slide 38: For personal use only
For personal use only