Slide 1: 2022 Preliminary Results
2022 Preliminary Results 15 February 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
Overview 2022
Slide 4: 2022 scorecard
OVERVIEW 2022 scorecard Financial ($bn) Industrial Marketing 34.1 +60% 24.0 +83% • Higher coal prices and addition of Cerrejón minority interests • Record 2022 performance, benefitting from extraordinary Adj.EBITDA(1) Equity FCF(2) underpinned the 59% increase in physical and financial market EBITDA
Slide 5: 2022 ESG scorecard
OVERVIEW 2022 ESG scorecard Environment Social Governance Progressing our climate strategy: Our ambition is to prevent Commitment to be a responsible and fatalities, occupational diseases ethical operator wherever we work • Significantly expanded our inventory of MACC opportunities in 2022 and injur
Slide 6: Financial performance
Financial performance 2022
Slide 7: Financial scorecard
2022 FINANCIAL PERFORMANCE Financial scorecard $bn 2022 2021 Chg Adj. EBITDA(1) 34.1 21.3 60% Industrial Adj. EBITDA 27.3 17.1 59% Marketing Adj. EBIT 6.4 3.7 73% Net Income 17.3 5.0 248% Net Income 18.9 9.1 107% pre-sig. items Funds from operations 28.9 17.1 70% Cash generated by 32.9 16.7 97% oper
Slide 8: Industrial: Adjusted EBITDA $27.3bn
2022 FINANCIAL PERFORMANCE Industrial: Adjusted EBITDA $27.3bn Industrial Assets Metals and Minerals segment Energy Products segment • Adjusted EBITDA up 59% to $27.3bn • Adjusted EBITDA of $9.3bn, • Adjusted EBITDA of $18.6bn, up • Primarily comprising a $13.0bn down $2.7bn, largely reflecting $13.
Slide 9: Industrial: Adjusted EBITDA bridge
2022 FINANCIAL PERFORMANCE Industrial: Adjusted EBITDA bridge + 0.9 - 3.6 + 0.7 + 0.0 + 12.2 27.3 17.1 2021 Price Volume Cost FX Other 2022 Price: +$12.2bn: Volume: +$0.9bn: Cost: -$3.6bn: FX: +$0.7bn: Primarily stronger average Mainly additional Cerrejón Primarily ‘commodity’ linked inflationary Pr
Slide 10: Industrial: Copper
2022 FINANCIAL PERFORMANCE Industrial: Copper Lower EBITDA in line with reduced production and realised prices y/y 2023 • Production -12%, reflecting the sale of Ernest Henry, Operating 2022 Chg 2021 Guidance geotechnical constraints at Katanga, and lower Production (kt) 1'058.1 -12% 1'195.7 1’040 ±
Slide 11: Industrial: Zinc
2022 FINANCIAL PERFORMANCE Industrial: Zinc Reduced zinc contribution driven by lower production and various non-cash cost impacts y/y 2023 • Production -16%, reflecting the disposal/cessation of Operating 2022 Chg 2021 Guidance South American operations, closure of Matagami Production (kt) 938.5 -1
Slide 12: Industrial: Nickel
2022 FINANCIAL PERFORMANCE Industrial: Nickel Stronger nickel contribution supported by higher prices y/y 2023 Operating 2022 Chg 2021 Guidance • Production +5%, reflecting operation of both Production (kt) 107.5 5% 102.3 112 ± 5 production lines at Koniambo, as well as normalised Murrin Murrin volu
Slide 13: Industrial: Coal
2022 FINANCIAL PERFORMANCE Industrial: Coal Strong performance underpinned by high prices y/y 2023 • Production +7%, primarily reflecting higher production Operating 2022 Chg 2021 Guidance from Cerrejón (33% to 100%), following acquisition of minority interests. On a like for like basis, overall Gro
Slide 14: Marketing: Adjusted EBIT $6.4bn
2022 FINANCIAL PERFORMANCE Marketing: Adjusted EBIT $6.4bn 2022 Adjusted EBIT of $6.4 billion, up 73% p/p Energy Products: Metals and Minerals: • Strong performance amid the extraordinary conditions $5.2bn, +273% $1.6bn, -34% impacting financial and physical commodity markets, as already tight post-
Slide 15: Capital allocation: Balance sheet
2022 FINANCIAL PERFORMANCE Capital allocation: Balance sheet Capital structure provides strength and flexibility • Committed available liquidity of $13.0bn $bn 2022 2021 Chg • FFO up 70% to $28.9 bn Funds from operations 28.9 17.1 70% • Net funding and Net debt of $27.5bn and $0.1bn Net funding 27.5
Slide 16: Capital allocation: Balance sheet - change in Net debt & working capital
2022 FINANCIAL PERFORMANCE Capital allocation: Balance sheet - change in Net debt & working capital Higher net working capital during the period reflects materially higher oil, coal and gas prices and their elevated market 2022 movement in Net debt ($bn)(1) volatilities Marketing accounted for c.$5.
Slide 17: Capital allocation: Shareholder returns
2022 FINANCIAL PERFORMANCE Capital allocation: Shareholder returns Shareholder return framework $10bn Optimal Net debt level of $10 billion with deleveraging below this cap periodically returned to shareholders via special Grounded on a formulaic base distribution, topped up as the distributions/buy
Slide 18: Capital allocation: Business reinvestment
2022 FINANCIAL PERFORMANCE Capital allocation: Business reinvestment 2022 Net purchase and sale of PP&E 2022 Net capex cash ($M) • $4.5bn net capex cash outflow, +19% p/p • Investment in energy transition commodities: +500 -299 +63 c.75% metals in 2022 2023-2025 Industrial capex average $5.6bn p.a.
Slide 19: Guidance
20235 Guidance
Slide 20: 2023F Mine unit cash costs/margins
2023 GUIDANCE 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 0.91 0.28 6.10 67.4 $0.66/lb ex Au $4.66/lb ex Koniambo Elevated 2023F cost position Lower 2023F unit cost after Elevated unit cost ref
Slide 21: Illustrative spot annualised cashflows
2023 GUIDANCE Illustrative spot annualised cashflows(1) Copper Adj.EBITDA $5.9bn 904kt Cu @ $2.98/lb margin Group Adj.EBITDA $22.6 Zinc Adj.EBITDA $1.7bn 692kt Zn @ $1.14/lb margin bn Nickel Adj.EBITDA $1.5bn 112kt Ni @ $5.91/lb margin Illustrative spot FCF Coal Adj.EBITDA $10.6 $9.3bn 110Mt Coal @
Slide 22: Uniquely positioned: energising today | advancing tomorrow
Uniquely positioned energising today | advancing tomorrow
Slide 23: Energising today | advancing tomorrow
UNIQUELY POSITIONED energising today | advancing tomorrow The right strategy The right business model • Sector leading climate ambition • Responsive and flexible business model that to be a net-zero total emissions adapts to the challenges and opportunities of company by 2050(1) the future and custo
Slide 24: Appendix
Appendix
Slide 25: February 2023 announced shareholder returns calculation
APPENDIX February 2023 announced shareholder returns calculation(1) $bn Marketing Industrial Corporate Total EBITDA 6.8 27.3 34.1 Unrealised inter-segment profit adjustment 1.2 1.2 Net cash interest allocation -0.6 -0.5 -1.1 Cash tax allocation -0.5 -5.4 -5.9 Viterra (earnings less dividend) -0.3 -0
Slide 26: Distribution timetable
APPENDIX Distribution timetable $0.20 per share first tranche of 2022 base distribution + H1 2023 $0.02 per share first tranche of top-up cash distribution Applicable exchange rate reference date (Johannesburg Stock Exchange (JSE) 26 April Applicable exchange rate announced on the JSE 28 April Last
Slide 27: 2022 costs/margin reconciliation
APPENDIX 2022 costs/margin reconciliation(1) Cu Production (kt) 1058.1 Copper from other depts (kt) -140.2 Net production (kt) 917.9 Net relevant sales (kt) 915.8 Realised copper price (c/lb) 364 Group Unit cash cost (c/lb) -80.3 FY margin (c/lb) 283.7 FY margin ($/t) 6255 Copper EBITDA ($M) 5728 $b
Slide 28: 2023F illustrative spot annualised FCF
APPENDIX 2023F illustrative spot annualised FCF Cu 2023F production (kt) 1040.0 Copper from other depts (kt) -149.0 Group (1) Net production (kt) 891.0 Forecast sales (kt) 904.0 Spot LME Cu (96% payable) (c/lb) 390 Unit cash cost guidance (c/lb) -91 $bn FY margin (c/lb) 298 FY margin ($/t) 6577 Illu
Slide 29: Viterra, a record year across the network
Viterra, a record year across the network FY 2022 104 MMT $55 bn $2.6 bn $1.0 bn $400 m Sales volumes Sales Adjusted Net Income Total dividend Outlook and focus Unaudited figures revenues EBITDA paid • Markets remain elevated above 2020 levels, with high Strong margins and operational performance se
Slide 30: 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 31: Energising today | advancing tomorrow
APPENDIX energising today | advancing tomorrow Our markets Our business Our value • Underinvested, • Unique position in • Flexible business destocked with strong producing, recycling, model that adapts demand growth sourcing, marketing and quickly to changing distributing the conditions and is • Eas
Slide 32: Ethics and compliance
APPENDIX Ethics and compliance We are Our Group Compliance team, committed to We have dedicated which is independent of the upholding a We have made business, supports the substantial resources significant investments implementation of the programme culture of over the last few years in compliance p
Slide 33: Simplifying and aligning our industrial portfolio
APPENDIX Simplifying and aligning our industrial portfolio Extensive review of industrial portfolio • Base portfolio aligned around key long-life low-cost future facing assets/regions • Monetisation and recycling of capital back into the business • Improved ESG risk profile and management focus • Fo
Slide 34: Commodity shortages are looming; significant mine development is lagging
APPENDIX Commodity shortages are looming; significant mine development is lagging IEA net zero emissions pathway is but increasing mine supply is and the industry remains wary of short >50Mt of copper by 2030 … challenging given heightened multi-billion dollar investment country and operational risk
Slide 35: We have a significant pipeline of copper organic growth options
APPENDIX We have a significant pipeline of copper organic growth options Significant brownfield Competitive capital Long-term copper Continuing programme to organic growth efficient growth with base portfolio of identify/build/manage the optionality in key the majority of projects c.1Mt with >1.0Mt
Slide 36: Accelerating the circularity of critical minerals
APPENDIX Accelerating the circularity of critical minerals Growing our global recycling As a major producer/marketer of battery metals we are seeking footprint in our core and new to accelerate circularity of critical minerals markets – 2022 progress Ni, Co Refining Mining pCAM Britannia Refined Met
Slide 37: Supplying the energy needs of today
APPENDIX Supplying the energy needs of today With at least 12 coal mine Our pathway to Net-zero scope 1+2+3 CO2e emissions(1) closures by 2035, we are on track to reduce our Scope 1+2+3 2019 2026 2035 2050 CO2e emissions by 15% by 2026 373Mt -15% -50% Net- and by 50% by 2035(1) zero • The energy tra
Slide 38: Supplying the energy needs of today
APPENDIX Supplying the energy needs of today Abatement is one of our decarbonisation strategy Surat Blue hydrogen project – pre-feasibility pillars Concurrently, we are studying the potential use of the Our CTSCo Carbon Capture and Storage Project achieved Wandoan coal resource as feedstock for prod
Slide 39: MACC opportunities
APPENDIX MACC opportunities Inventory of MACC decarbonisation opportunities doubled again in 2022 Our larger assets are well positioned for Value accretive Scope 1+2 Declining coal volumes lower our sourcing renewable energy abatement opportunities exposure to bulk commodity expected to be funded wi
Slide 40: Abatement initiatives – active studies/projects across industrial portfolio
APPENDIX Abatement initiatives – active studies/projects across industrial portfolio Renewable Power Altonorte Australian Coal Boshoek Koniambo Asturiana Purchasing Lomas Bayas South African Coal Lion Nikkelverk Nordenham Antapaccay Rustenburg Kazzinc Pasar Wonderkop Mt Isa Cobar Renewable Power Cob
Slide 41: Industrial: copper business unit outlook
APPENDIX Industrial: copper business unit outlook Largely steady base business; modest decline in copper production from other Glencore departments • Ongoing alignment of the copper business around long-life, low-cost assets in South America and Africa: Katanga, Mutanda, Collahuasi, Antamina and Ant
Slide 42: Industrial: zinc business unit outlook
APPENDIX Industrial: zinc business unit outlook Relatively stable outlook, with the 2025 production decline reflecting end of mine life closures • Simpler portfolio – Bolivian, Argentinian and Peruvian assets divested over the last two years • Industrial zinc business now oriented towards larger, lo
Slide 43: Industrial: nickel business unit outlook
APPENDIX Industrial: nickel business unit outlook Ex-Koniambo production growth over the outlook period reflects commissioning of the Canadian life extension projects • INO production troughs in 2023, before the Canadian extension projects reverse this trend • Major project delivery - Raglan Phase 2
Slide 44: Industrial: coal business unit outlook
APPENDIX Industrial: coal business unit outlook Stable production outlook • 2022 production heavily constrained by Australian weather, Cerrejón blockades and South African rail logistics • External impacts assumed to be less impactful from 2023, countering portfolio depletion over the 3-year outlook
Slide 45: Footnotes
APPENDIX Footnotes Slide 21, 28: 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 13 February 2023, by-products and FX as at 1 F
Slide 46: For more information
APPENDIX For more information 2022 Preliminary Results 46