Slide 1: 2023 Preliminary Results: Energising today, Advancing tomorrow
2023 Preliminary Results Energising today Advancing tomorrow
Slide 2: Important notice
Important notice This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any securities. Glencore has not finalised its 2023 Annual Report and Glencore’s independent accounting firm has not completed it
Slide 3: Overview
Overview 2023
Slide 4: 2023 scorecard
OVERVIEW 2023 scorecard Financial ($bn) Marketing Industrial 17.1 -50% 4.9 • A strong performance, exceeding our long-term guidance range, • Coal provided strong results given continued high energy prices, albeit Adj.EBITDA1 Net debt but below last year’s exceptional lower year-on-year, reflecting t
Slide 5: 2023 ESG scorecard
OVERVIEW 2023 ESG scorecard Environment Social Governance Progressing our climate strategy: Our ambition is to prevent fatalities, Commitment to be a responsible and • 2026/2035 Scope 1+2+3 industrial occupational diseases and injuries ethical operator wherever we work emissions reduction targets on
Slide 6: 2023 portfolio scorecard
OVERVIEW 2023 portfolio scorecard Significant portfolio evolution in 2023 – aiming to simplify and align our portfolio around longer-life, lower-cost assets that enable us to produce, recycle and market the commodities needed for the energy transition Acquisitions Sale/disposal/C&M $6.9bn for 77% of
Slide 7: Financial performance
Financial performance 2023
Slide 8: Financial scorecard
2023 FINANCIAL PERFORMANCE Financial scorecard $bn 2023 2022 Chg Adj. EBITDA1 17.1 34.1 -50% Industrial Adj. EBITDA 13.2 27.3 -52% Marketing Adj. EBIT 3.5 6.4 -46% Net Income 4.3 17.3 -75% Net Income 6.7 18.9 -65% pre-significant items Funds from operations 9.55 28.9 -67% Cash generated by operating
Slide 9: Industrial: Adjusted EBITDA $13.2bn
2023 FINANCIAL PERFORMANCE Industrial: Adjusted EBITDA $13.2bn Industrial Assets Metals and Minerals Energy Products • Adjusted EBITDA of $13.2bn, down • Adjusted EBITDA of $5.4bn, down 41% • Adjusted EBITDA of from $27.3bn in 2022 compared to the prior period $8.5bn, down from • The period-on-perio
Slide 10: Industrial: Adjusted EBITDA bridge
2023 FINANCIAL PERFORMANCE Industrial: Adjusted EBITDA bridge $bn - 13.1 27.3 - 0.0 - 1.3 + 0.5 - 0.2 13.2 2022 Price Volume Cost FX Other 2023 Price: -$13.1bn: Volume: -$27M: Cost: -$1.3bn: FX: +$0.5bn: Primarily weaker average Recovery from 2022 weather Primarily ‘commodity’ linked inflationary im
Slide 11: Industrial: Key commodity scorecard
2023 FINANCIAL PERFORMANCE Industrial: Key commodity scorecard Copper Zinc Nickel Coal 2022 2023 % chg 2022 2023 % chg 2022 2023 % chg 2022 2023 % chg Production1 1.06Mt 1.01Mt -5% 0.94Mt 0.92Mt -2% 108kt 98kt -9% 110Mt 114Mt 3% Unit cash cost (pre by-product) 185c/lb 220c/lb 19% 321c/lb 308c/lb -4%
Slide 12: Marketing: Adjusted EBIT $3.5bn
2023 FINANCIAL PERFORMANCE Marketing: Adjusted EBIT $3.5bn 2023 Adjusted EBIT of $3.5bn, down 46% p/p Energy Products: Metals and Minerals: • Marketing delivered strong results, in a return to $1.7bn, -67%, $1.7bn, +5%, a more normal backdrop, following the elevated in a return to a more reflecting
Slide 13: Capital allocation: Balance sheet - change in Net debt & working capital
2023 FINANCIAL PERFORMANCE Capital allocation: Balance sheet - change in Net debt & working capital 2023 movement in Net debt ($bn)1 Leases and other, +$0.9bn Dec 2023 Distributions Net debt, and +$4.9bn Dec 2022 Buybacks, Net debt, +$10.1bn +$0.1bn FFO, Net investments -$9.5bn (M&A), +$0.5bn Net ca
Slide 14: Capital allocation: Shareholder returns
2023 FINANCIAL PERFORMANCE Capital allocation: Shareholder returns Shareholders returns framework Shareholder return framework Grounded on a formulaic base distribution, topped up as the balance sheet allows, reflecting the future maintenance, of a $5bn net debt cap1 periodically returned to shareho
Slide 15: Capital allocation: Business reinvestment
2022 FINANCIAL PERFORMANCE Capital allocation: Business reinvestment Oil Copper 2023 Industrial capex and net purchase and sale of PP&E Coal • Industrial segment capex of $6.0bn, +26%, in line with prior guidance • 2023 increase substantially relates to Copper: ◦ Collahuasi is the largest contributo
Slide 16: Guidance
2024 Guidance
Slide 17: Production guidance
2024 GUIDANCE Production Key commodities 2024-2026 production guidance range 2027-30 Annual average 2023A 2024F 2025F 2026F Trends 2024-2026 Higher: basis KCC recovery from c.220ktpa (assumed in Gold(koz) 634 Copper(kt)1 1010 950-1010 900-960 910-970 2025/26) to c.260ktpa+ likely growth project volu
Slide 18: 2024F Mine unit cash costs/margins
2024 GUIDANCE 2024F Mine unit cash costs/margins1 Copper Zinc Nickel Coal $/lb total cash cost $/lb total cash cost $/lb total cash cost $/t Thermal FOB cash cost 1.50 Lower, but still elevated, 2024F 0.05 Lower 2024F net unit cash cost 4.89 Significant reduction in 2024F net 66.8 Lower 2024F unit c
Slide 19: Illustrative spot annualised EBITDA and FCF
2024 GUIDANCE Illustrative spot annualised FCF Industrial ($bn) ($bn) Copper2 Zinc3 Nickel4 Coal5 Other Marketing6 Group Coal:EVR7 Group+EVR Primary production1 950-1010kt 900-950kt 80-90kt 105-115Mt 20Mt Production from other -141.2kt -84.0kt departments Payability deduction -135.0kt Net relevant p
Slide 20: Positioned for the future
Positioned for the future energising today | advancing tomorrow
Slide 21: Electricity demand and grid investment
POSITIONED FOR THE FUTURE energising today | advancing tomorrow Global electricity demand is growing … … but despite accelerating investment in … underpinning the role of fossil fuel base and is projected to increase a further 55% renewable energy3, global investment in load electricity in the energ
Slide 22: Energy transition demand momentum
POSITIONED FOR THE FUTURE energising today | advancing tomorrow: energy transition demand momentum 2023 double digit growth rates in China’s … offset weak consumption elsewhere to China’s transition demand expected to key metals-consuming sectors1 … keep 2023 global demand growth positive3 remain su
Slide 23: Copper supply tightens
POSITIONED FOR THE FUTURE energising today | advancing tomorrow: while copper supply tightens 2024 copper mine supply forecasts have fallen almost 1.4Mt Metal exchange stocks remain close to historical lows2 over the last year1 2024 monthly copper mine supply forecast change (kt) 100 Days consumptio
Slide 24: Steelmaking coal and the energy transition
POSITIONED FOR THE FUTURE energising today | advancing tomorrow High-quality steelmaking coal also Long-term fundamentals supports the energy transition as an Global steel production by process1 essential input into steel production 100% needed for certain renewable energy 90% infrastructure 80% 70%
Slide 25: Portfolio growth optionality
POSITIONED FOR THE FUTURE Building an industry leading copper portfolio >1Mt optionality3 Portfolio growth optionality Our copper portfolio has been reset for growth • Sale/disposal of non-core assets now largely complete: Mopani, El Pachon Ernest Henry and Cobar (c.$2bn anticipated proceeds, includ
Slide 26: Energising today, advancing tomorrow: summary
POSITIONED FOR THE FUTURE energising today | advancing tomorrow Major Leading Accelerating Supplying the Sourcing portfolio of copper the circularity energy needs and transition producer of metals of today Marketing commodities with >1.0Mt per annum mostly as a major recycler of end-of-life through
Slide 27: Appendix
Appendix
Slide 28: February 2024 announced shareholder returns calculation
APPENDIX February 2024 announced shareholder returns calculation1 $bn Marketing Industrial Corporate Total EBITDA 3.9 13.2 17.1 Unrealised inter-segment profit adjustment 0.3 0.3 Cash net interest allocation -0.6 -0.7 -1.3 Cash tax allocation -0.1 -7.0 -7.1 Viterra (earnings less dividend) -0.1 -0.1
Slide 29: 2023 Industrial capex by category
APPENDIX 2023 Industrial capex by category Ferro Total Industrial Capex ($M) Copper Zinc Nickel1 alloys Aluminium Coal Oil 2023 Major Equipment Overhaul 155 89 18 6 268 537 Infrastructure Includes: Bulga 147 205 77 3 Pit Top support 154 585 Smelters/Refineries 187 159 61 45 equipment, HVO 0 64 516 f
Slide 30: Distribution timetable
APPENDIX Distribution timetable First tranche of 2023 base distribution - ($6.5 cents/share) H1 2024 Applicable exchange rate reference date (Johannesburg Stock Exchange (JSE) 19 April Applicable exchange rate announced on the JSE 22 April Last day to effect removal of shares cum distribution betwee
Slide 31: 2023 costs/margin reconciliation
APPENDIX 2023 costs/margin reconciliation1 Industrial Copper Zinc Nickel Coal Other Marketing Group Primary production 1010.1kt 918.5kt 97.6kt 113.6Mt Production from other -120.2kt -156.6kt departments Payability deduction -117.3kt Net relevant production 889.9kt 644.5kt 97.6kt 113.6Mt Net relevant
Slide 32: Ethics and compliance
APPENDIX Ethics and compliance We are Our Group Compliance team, We have taken committed to significant steps and which is independent of the upholding a We have made business, supports the dedicated substantial significant investments implementation of the programme culture of resources over the la
Slide 33: Industrial: copper business unit
APPENDIX Industrial: copper business unit, pre-valuable growth options (slide 25) Largely steady base business; modest decline in copper production from other Glencore commodity departments • Copper business focused around long-life, low-cost assets in South America and Africa: KCC, Mutanda, Collahu
Slide 34: Industrial: zinc business unit
APPENDIX Industrial: zinc business unit Relatively stable outlook, with the 2026 production decline reflecting end of mine life closures • Simpler portfolio: Bolivia, Argentina and Peru assets divested; sale process for Volcan underway • Industrial zinc business now oriented towards larger, longer-l
Slide 35: Industrial: nickel business unit
APPENDIX Industrial: nickel business unit Largely steady production profile over the outlook period • INO volumes to trend higher, with delivery of the Onaping Depth life extension project expected to restore overall production capacity back to c.100ktpy from 2027 • Stable Murrin Murrin production p
Slide 36: Industrial: coal business unit
APPENDIX Industrial: coal business unit Near-term stable production outlook (ex-EVR) • 2023 production recovery reflected higher productivity in South Africa and a year-over-year easing in certain external factors that constrained capacity in 2022, such as wet weather and blockades • Acquisition of
Slide 37: Footnotes
APPENDIX Footnotes Slide 19: Totals may not add due to rounding. (1) Illustrative EBITDA calculation based on the mid-point of the production guidance range (2) Copper spot annualised Adjusted EBITDA calculated basis mid-point of 2024 production guidance on Slide 17 adjusted for copper produced by o
Slide 38: For more information
For more information 2023 Preliminary Results 38
Slide 39: End
End www.glencore.com 2023 Preliminary Results 39