Slide 1: 2023 Half-Year Results
2023 Half-Year Results 8 August 2023
Slide 2: Important Notice Concerning This Document Including Forward Looking Statements
IMPORTANT NOTICE CONCERNING THIS DOCUMENT INCLUDING FORWARD LOOKING STATEMENTS This document contains statements that are, or may be deemed to be, “forward-looking statements” which are prospective in nature. Such statements may include, but are not limited to, statements in respect of trends in com
Slide 3: Overview H1 2023
Overview H1 2023
Slide 4: 2023 First-half scorecard
OVERVIEW 2023 First-half scorecard Financial ($bn) Marketing Industrial 9.4 -50% 8.4 -54% • Strong H1 performance, • Despite materially lower energy Adj. Cash generated by annualising above our long-term prices and cost headwinds from EBITDA(1) operating activities(2) guidance range, albeit 52% lowe
Slide 5: 2023 First-half ESG scorecard
OVERVIEW 2023 First-half ESG scorecard Environment Social Governance Supporting our ambition to be a leader Our ambition is to prevent Under agreements with DOJ, Glencore in environmental performance, we have fatalities, occupational diseases has appointed the two independent published updates on ou
Slide 6: Financial performance H1 2023
Financial performance H1 2023
Slide 7: Financial scorecard
H1 2023 FINANCIAL PERFORMANCE Financial scorecard $bn H1 2023 H1 2022 Chg Adj. EBITDA(1) 9.4 18.9 -50% Industrial Adj. EBITDA 7.4 15.0 -51% Marketing Adj. EBIT 1.8 3.7 -52% Net Income 4.6 12.1 -62% Net Income 4.2 10.8 -61% pre-sig. items Cash generated by operating 8.4 18.3 -54% activities(2) Net ca
Slide 8: Industrial: Adjusted EBITDA $7.4bn
H1 2023 FINANCIAL PERFORMANCE Industrial: Adjusted EBITDA $7.4bn Industrial Assets Metals and Minerals Energy Products • Adjusted EBITDA of $7.4bn, down from • Adjusted EBITDA of $3.1bn, down 48% • Adjusted EBITDA of $15.0bn in H1 2022 compared to the prior period $4.7bn, down from • The period-on-p
Slide 9: Industrial: Adjusted EBITDA bridge
H1 2023 FINANCIAL PERFORMANCE Industrial: Adjusted EBITDA bridge $bn - 5.7 - 1.3 15.0 - 1.1 + 0.4 + 0.1 7.4 H1 2022 Price Volume Cost FX Other H1 2023 Price: -$5.7bn: Volume: -$1.3bn: Cost: -$1.1bn: FX: +$0.4bn: Primarily weaker average Mainly reduced Cerrejón volumes Primarily ‘commodity’ linked in
Slide 10: Industrial: Copper
H1 2023 FINANCIAL PERFORMANCE Industrial: Copper EBITDA impacted by lower cobalt realisations • Production -4%, consistent with our expectations around H1 y/y H1 2023 mine sequences at Collahuasi and Antamina Operating 2023 Chg 2022 Guidance Production (kt) 488.0 -4% 510.2 1’040 ± 30 • Significant u
Slide 11: Industrial: Zinc
H1 2023 FINANCIAL PERFORMANCE Industrial: Zinc Reduced zinc contribution primarily driven by H1 y/y H1 2023 lower prices and higher reported costs Operating 2023 Chg 2022 Guidance • Production -10%, mainly reflecting the 2022 Production (kt) 434.7 -10% 480.7 950 ± 30 disposals of the South American
Slide 12: Industrial: Nickel
H1 2023 FINANCIAL PERFORMANCE Industrial: Nickel Nickel contribution impacted by lower own source volumes and higher costs H1 y/y H1 2023 Operating 2023 Chg 2022 Guidance • Production -20%, primarily reflecting the supply Production (kt) 46.4 -20% 57.8 112 ± 5 chain impacts of 2022’s prolonged Ragla
Slide 13: Industrial: Coal
H1 2023 FINANCIAL PERFORMANCE Industrial: Coal Lower EBITDA in line with lower coal H1 y/y H1 2023 prices Operating 2023 Chg 2022 Guidance • Production broadly unchanged, noting Production (Mt) 54.2 -2% 55.4 110 ± 5 the closure of Newlands during the Thermal FOB cash costs ($/t)(1) 77.1 2% 75.4 72.6
Slide 14: Marketing: Adjusted EBIT $1.8bn
H1 2023 FINANCIAL PERFORMANCE Marketing: Adjusted EBIT $1.8bn H1 2023 Adjusted EBIT of $1.8 billion, Energy Products: Metals and Minerals: down 52% p/p $1.0bn, -66%, $0.8bn, -18%, • Strong performance, annualising above in a return to a more reflecting generally less our long-term guidance range, bu
Slide 15: Capital allocation: Balance sheet
H1 2023 FINANCIAL PERFORMANCE Capital allocation: Balance sheet Capital structure provides strength and flexibility • Committed available liquidity of $12.9bn • Cash generated by operating activities(1): $8.4bn, down 54% H1 • Materially higher taxes paid, reflecting the lag effect, of settlement in
Slide 16: Balance sheet - change in Net debt & working capital
H1 2023 FINANCIAL PERFORMANCE Capital allocation: Balance sheet - change in Net debt & working capital H1 2023 movement in Net debt Progressive normalisation of 2022’s ($bn)(1) extreme market dislocations and volatility supported a significant release of Marketing net working Other, Jun 2023 capital
Slide 17: Capital allocation: Shareholder returns $10bn
H1 2023 FINANCIAL PERFORMANCE Capital allocation: Shareholder returns $10bn Optimal Net debt level of $10 billion with deleveraging below Top-up calculation(2) $bn this cap periodically returned to shareholders via special distributions/buybacks as appropriate(1) Net debt at 30 June 2023 1.5 + H1 20
Slide 18: Capital allocation: Business reinvestment $2.5bn
H1 2023 FINANCIAL PERFORMANCE Capital allocation: Business reinvestment H1 2023 Net capex cash ($M) H1 2023 Net purchase and sale of PP&E +198 -340 • $2.5bn net capex cash outflow, +21% p/p +133 2023-2025 Industrial capex average $5.6bn p.a., unchanged from guidance earlier in the year 2’478 2’469 •
Slide 19: Supporting the global ambition to decarbonise
Supporting the global ambition to decarbonise energising today | advancing tomorrow
Slide 20: Capital allocation: Business reinvestment
SUPPORTING THE GLOBAL AMBITION TO DECARBONISE Capital allocation: Business reinvestment Investing in our transition metals portfolio – H1 2023(1) Acquisition from Norsk Hydro: Acquisition from Pan American Silver Corp: Agreement with Polymet to acquire the • 30% equity stake in Alunorte S.A. • 56.25
Slide 21: Energising today | advancing tomorrow
SUPPORTING THE GLOBAL AMBITION TO DECARBONISE energising today | advancing tomorrow Major critical Leading Accelerating Supplying the Sourcing minerals copper the circularity energy needs and portfolio producer of metals of today Marketing with key large-scale and long- with >1.0Mt per annum mostly
Slide 22: Appendix
Appendix
Slide 23: 2023F Mine unit cash costs/margins
APPENDIX 2023F Mine unit cash costs/margins(1) Copper Zinc Nickel Coal $/lb total cash cost $/lb total cash cost $/lb total cash cost $/t Thermal FOB cash cost 1.32 0.35 8.50 72.6 $0.76/lb ex Au $6.13/lb ex Koniambo Elevated 2023 unit costs reflect H1 unit cost impact of lower Elevated unit costs re
Slide 24: Illustrative spot annualised FCF
APPENDIX Illustrative spot annualised FCF Industrial (6) ($bn) Copper(1) Zinc(2) Nickel(3) Coal(4) Other(5) Marketing Group Primary production 1040.0kt 950.0kt 112kt 110Mt Production from other -140.0kt -151.0kt departments Payability deduction -125.0kt Net relevant production 900.0kt 674.0kt 112kt
Slide 25: H1 2023 costs/margin reconciliation
APPENDIX H1 2023 costs/margin reconciliation(1) Industrial Copper Zinc Nickel Coal Other Marketing Group Primary production 488.0kt 434.7kt 46.4kt 54.2Mt Production from other -57.7kt -77.0kt departments Payability deduction -57.7kt Net relevant production 430.4kt 300.0kt 46.4kt 54.2Mt Net relevant
Slide 26: Capital allocation: Shareholder returns framework
APPENDIX Capital allocation: Shareholder returns framework Predictable minimum shareholder returns grounded on a formulaic base distribution, topped up as the balance sheet allows 1 2 Shareholder returns calculation flowsheet Full-year Half-year Base Top-up results results Distribution Shareholder I
Slide 27: Distribution timetable – second tranche
APPENDIX Distribution timetable – second tranche $0.20 per share second tranche of 2022 base distribution + $0.02 per share second tranche of February 2023 top-up cash distribution + H2 2023 $0.08 per share August 2023 top-up cash distribution Applicable exchange rate reference date (Johannesburg St
Slide 28: Footnotes
APPENDIX Footnotes Slide 22: Totals may not add due to rounding. (1) Copper spot annualised Adjusted EBITDA calculated basis mid-point of 2023 production guidance on Slide 10 adjusted for copper produced by other departments. Spot copper price as at 28 July 2023, adjusted for 96% payability, by-prod