glen investor-day-2014-print

1 1

Tintaya concentrator, Peru

08:00 - Welcome and Overview | Ivan Glasenberg

08:20 - Finance Update | Steven Kalmin

08:45 - Copper | Telis Mistakidis

09:15 - Coal | Tor Peterson & Peter Freyberg

09:45 - Break

10:05 - Zinc | Daniel Maté & Chris Eskdale

10:35 - Nickel | Kenny Ives & Peter Johnston

11:05 - Oil | Alex Beard

11:40 - Break

12:00 - Agricultural products | Chris Mahoney

12:30 - Conclusion and Q&A

Investor Day 10 December 2014

Forward looking statements

This document contains statements that are, or may be deemed to be, “forward looking statements” which are prospective in nature. These forward looking statements may be identified

by the use of forward looking terminology, or the negative thereof such as "plans", "expects" or "does not expect", "is expected", "continues", "assumes", "is subject to", "budget",

"scheduled", "estimates", "aims", "forecasts", "risks", "intends", "positioned", "predicts", "anticipates" or "does not anticipate", or "believes", or variations of such words or comparable

terminology and phrases or statements that certain actions, events or results "may", "could", "should", “shall”, "would", "might" or "will" be taken, occur or be achieved. Such statements

are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward-looking statements are not based on historical facts, but rather on current

predictions, expectations, beliefs, opinions, plans, objectives, goals, intentions and projections about future events, results of operations, prospects, financial condition and discussions

of strategy.

By their nature, forward looking statements involve known and unknown risks and uncertainties, many of which are beyond Glencore’s control. Forward looking statements are not

guarantees of future performance and may and often do differ materially from actual results. Important factors that could cause these uncertainties include, but are not limited to, those

discussed under “Principal risks and uncertainties” of Glencore’s Annual Report 2013 and “Risks and uncertainties” in Glencore’s 2014 Half-Year Report.

Neither Glencore nor any of its associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied

in any forward-looking statements in this document will actually occur. You are cautioned not to place undue reliance on these forward-looking statements which only speak as of the

date of this document. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure and Transparency Rules of the Financial

Conduct Authority and the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited and the Listing Requirements of the Johannesburg Stock Exchange

Limited), Glencore is not under any obligation and Glencore and its affiliates expressly disclaim any intention, obligation or undertaking to update or revise any forward looking

statements, whether as a result of new information, future events or otherwise. This document shall not, under any circumstances, create any implication that there has been no change

in the business or affairs of Glencore since the date of this document or that the information contained herein is correct as at any time subsequent to its date.

No statement in this document is intended as a profit forecast or a profit estimate and no statement in this document should be interpreted to mean that earnings per Glencore share for

the current or future financial years would necessarily match or exceed the historical published earnings per Glencore share.

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. The making of this

document does not constitute a recommendation regarding any securities.

2

Ivan Glasenberg

CEO

Lion chrome smelter, South Africa

Summary

• Capital misallocation, not a lack of demand, remains a key issue

for the sector

• Clear need to differentiate by commodity – correlation has broken down

• Glencore’s positioning provides superior insulation and material price optionality

• Established portfolio of Tier one industrial assets/cost structure in the right

commodities

• Glencore Marketing is a unique, low-risk, defensive earnings driver

• Our balance sheet strategy, attributes and execution are key value creators

• Unparalleled track record of value creation since 1994, based on material

management ownership

• Our sustainability efforts are gaining traction

4

Capital allocation is a key issue for the sector

Electronic scrap recycling, Horne copper smelter, Canada

0%

2%

4%

6%

8%

10%

12%

Copper Zinc Al Ni Thermal Coal Iron Ore Oil

Previous 5 year average

2014

Demand favours base over bulk again in 2014 …

6 Source: Glencore estimates, various broker reports, Wood Mackenzie.

Global demand growth

… however, capital allocation in the sector remains iron ore centric …

7

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Glencore Peer 1 Peer 2 Peer 3 Peer 4

Met Coal Thermal Coal Iron Ore Metals Oil and Gas

Production growth 2013A -2016E (Cu equivalent)

Source: Company websites, Glencore estimates. Note, does not include commodities where production declines are expected.

-60% -50% -40% -30% -20% -10% 0% 10% 20% 30%

Copper

Zinc

Aluminium

Nickel

Coal

Iron ore

Oil

… and price performance reflects oversupply fears

8

Year to date price change

Source: Bloomberg as at 3 December 2014, Wood Mackenzie, Deutsche Bank, Glencore estimates.

Differentiation by commodity is critical

Wheat crop in Bute, Australia

Our global footprint is truly diversified …

10

… by commodity and activity …

11

Oil 26%

Copper 20%

Iron Ore 52%

Other 1%

Iron Ore 73%

Aluminium 10%

Copper 10%

Coal 2%

Diamonds 5%

Iron Ore 40%

Coal 8%

Copper 25%

Diamonds 25%

Other 2%

BHP:

Copper 38%

Zinc 4%

Nickel 7%

Coal 7%

Oil 4%

Marketing metals 25%

Marketing energy 6%

Marketing agri 13%

Corp and other (4%)

Source: company reports, EBIT H1 2014.

… with key drivers earning 98% of EBIT …

12

0 10 20 30 40 50 60 70 80 90 100

38% 4% 7% 7% 42%

Cu Deficit

“Consensus” surplus

elusive so far,

increasing downside

risk to supply in 2015/16

Zn Deficit

An additional 3-3.5Mt of

zinc supply needed over

next 5 years to balance

the market

Marketing Resilient

Defensive earnings,

less sensitive to falling

prices. Benefits from

own source production

Coal Rebalancing

Some high cost supply

shutting, new investment

delayed. Coal essential

to meet energy demand

Ni Transitioning to deficit

Balanced 2015 and

deficits thereafter,

substantial from 2018

Data: H1 2014 EBIT.

70

80

90

100

110

120

130

140

2013 2014 2015 2016 2017 2018

… supported by positive fundamentals and prices

13

Consensus price forecasts 2014=100

Source: Consensus broker research, 4 December 2014.

Nickel

Aluminium

Zinc

Copper

Iron Ore

Oil

Thermal

Coal

Established portfolio of Tier one industrial assets

Assay lab, Mount Isa Mines, Australia

Established portfolio of Tier One assets …

15

… with synergies and cost savings embedded in the commodity cost structures …

16

Cu

2016F

>$2bn

industrial merger

synergies and other

cost savings achieved

Post-integration

cost efficiencies

and focus now

ingrained in

industrial asset

structures

Q1

first quartile cost

positions achieved in

2014; further

improvements expected

Q1 Q2 Q3 Q4

FeCr

2013

2016F

Ni

2016F

Thermal Coal

2016F

Illustrative C1 metals cash cost curve / Inverse FOB cash margin thermal coal

Zn

2016F

Cu

2013

Zn

2013

Ni

2014F

… with major optionality for future brownfield growth, as and when appropriate

17

2016+ brownfield growth options

Copper

Coroccohuyaco

Mutanda Sulphides

Zinc

Mararovskoe

Dolinno

Nickel

Raglan 40ktpa

Raglan Phase II

Coal

Mt Owen extension

Rolleston Phase II expansion

GGV expansion

Optimum / Zonnebloem

Commissioning 2015

Copper

Nkana Synclinorium: new

shaft to extend section life by

25 years

DRC Power: first 162MW

refurbished turbine (G27) at

Inga

Tintaya mill restart: restart

Tintaya mill to process higher

Antapaccay ore volumes

Commissioning 2016

Copper

Antapaccay expansion:

Concentrator upgrade to

increase throughput

Oil: >800 MM bbls of risked

prospective resource potential

in Chad Chad exploration: Doseo/Borogop,

DOBI/DOI, DOH blocks

Chad development: Kibea and

nearby discoveries

Bolongo – Cameroon

Diega – Equatorial Guinea

Oil

Krim (DOB/DOI): Chad

Note: Cu equivalent annual growth including the above committed projects only of c. 5.4% expected 2014-2018.

Coal

Bulga: 20 year life extension

at current production rates

Commissioning 2017

Copper

Mopani Deeps: new shaft

infrastructure to provide a

25% increase in own source

production and a 20%

reduction in mine cash costs

Marketing – a defensive earnings driver

Chemoil terminal, Singapore

Marketing – a unique, low-risk, defensive earnings driver

19

• Relatively low cost of capital and stable cost base underpin predictable and high ROE

• Resilient earnings capability in a falling price environment

• Minimal exposure to flat price risk

• Difficult to replicate

• A key differentiator among the diversified peers

• Credit rating/cost of funds advantage relative to trading peers

• Industry leading own source production volumes create significant optionality

• Provides unrivalled global intelligence / market knowledge and insight

• Commodity direction

• Corporate activity/opportunities

• Customer and supplier behaviour

• Unique scale, diversification and skill

Marketing EBIT ($M)

0 1,000 2,000 3,000 4,000

2008

2009

2010

2011

2012

2013

2014+

Marketing EBIT ($M)

Historical

guidance

range:

$2 to $3bn

Revised

guidance

range (post

Xstrata and

Viterra):

$2.7 to $3.7bn

Sustainability gaining traction

Espinar farmer near Antapaccay/Tintaya copper mines, Peru

Governance and sustainability

Safety • Regrettably 15 fatalities year to date (26 in 2013)

• Reduction on 2013 reflects ‘SafeWork’ focus on safety

leadership, culture and implementation of Fatal Hazard

Protocols

• Significant performance improvement at DRC, Zambia,

Bolivia and Kazakhstan operations (64,500 employees

and contractors)

• Targeting ‘SafeWork’ rollout to all 200,000 employees

and contractors by February 2015 (100,000 YTD)

Governance • Consolidation of Board: A. Hayward, Chair; P. Grauer

SID; Patrice Merrin, new NED

• Published policies on bribery and corruption, carbon

and human rights

Memberships • ICMM, UN Global Compact, EITI

• Voluntary Principles on Security and Human Rights

(application in progress)

21

LTIFR(1) 2009 to 2014YTD

3.00

2.73

2.51

2.04 1.93

1.57

1.00

1.50

2.00

2.50

3.00

3.50

2009 2010 2011 2012 2013 2014YTD

Note: (1) Lost time incidents (LTIs) are recorded when an employee or contractor is unable to work following an incident. Glencore records LTIs which result in lost days

from the next calendar day after the incident whilst Xstrata recorded LTIs which resulted in lost days from the next rostered day after the incident – therefore the

combined LTI figure is not based on data of consistent definition (historically, prior to merger). LTIFR is the total number of LTIs recorded per million working hours.

Our priorities for 2015

Zinc balls, Nordenham, Germany


23

• Successfully deliver remaining key growth projects

• Koniambo, McArthur River, Katanga, Chad oil fields

• Ensure continued operating efficiency, targeting Q1 costs/margins

• Maintain strong investment grade credit rating

• Maintain disciplined deployment of capital to maximise free cash flow growth

• Glencore considers portfolio not only marginal NPV

• Confidence to:

• grow base dividend

• recycle excess capital to shareholders

• be opportunistic, but within our capital allocation framework

• Focus on continuing improvements in our health, safety, sustainability and governance performance

24 24

Thermal coal, Rolleston mine, Australia






09:45 - Break




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25








of strategy.















Steven Kalmin

CFO

La Jagua Mine, Prodeco, Colombia

Summary

• Robustly profitable industrial operations post merger integration

• Marketing enhances earnings stability, flexibility and optionality

• Rigorous focus on opex/capex and working capital

• Clear and consistent framework for capital allocation

• Expansionary capital geared to the right commodities and opportunities

• Optimal balance sheet structure for returns, liquidity and cost of capital

• We will continue to focus on return of excess capital to shareholders

• interim distribution +11%

• $1bn equity buyback now c.65% completed

27

Robustly profitable industrial operations

• $36bn expansionary capital since 2009

• Mix skewed to the “right”

commodities

• Tier 1 cost profile and resource base

for the Group’s largest commodities

and across most of the broader

portfolio

• Superior pricing vs indices due to

marketing network and infrastructure

• >$2bn of overhead and operational

cost savings post Xstrata transaction

• Sustaining capex confirmed around

$4.0bn p.a.

• expected to fall closer to $3.5bn p.a. by 2017

• no major grade issues/declines for the

foreseeable future

28

12.7

3.6

7.1

1.1

8.5

3.0

0.5

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total 2009-H1 2014

Ags

Oil

Coal

Ferroalloys/PGM

Nickel

Zinc

Copper

Expansionary capex 2009-H1 2014

Marketing enhances earnings/cashflow stability, flexibility and optionality

EBIT guidance range of $2.7-3.7bn

• Still positive but low correlation with commodity prices

• Consistent profit generator over 4 decades

• Reflects market position and diversification

• Current trading in line with this range

Highly cash flow generative

• Minimal fixed assets/capex required

• Efficient capital structure

• By itself, underpins bulk of current base distribution

Working capital effect (inversely correlated with commodity prices) ensures cashflow can be insulated in periods of lower prices

Strong track record of improving margins within industrial businesses

• Leveraging market intelligence on commodity fundamentals, including customer and supplier behaviour

29

Marketing EBIT ($M)

Historical

guidance

range:

$2 to $3bn

Revised

guidance

range (post

Xstrata and

Viterra):

$2.7 to $3.7bn

0 1,000 2,000 3,000 4,000

2008

2009

2010

2011

2012

2013

2014+

Marketing: a low risk, high ROE business

30

0

20

40

60

80

100

120

Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14

Low risk model Consolidated VaR: 1 Day 95% ($M)

37%

42%

36%

42%

30%

32%

34%

36%

38%

40%

42%

44%

2011 2012 2013 2014F

Average: 39%

Capital employed easily adjusted to price environment High ROE(1)

• >95% of marketed volumes are hedged or pre-

sold to mitigate price risk exposure

• The 2 key risks are actively managed:

• Credit risk – mitigated by: counterparty risk analysis,

extensive use of letters of credit, credit insurance and

having collateral

• Market risk – mitigated by: derivatives used to hedge

market risk assumed in physical marketing, adherence to

VaR limits, regular stress testing

• Fast turning inventory and receivables – average

conversion cycle of 32 days (30 June 2014)

Average:$33M

VaR Limit: $100M

Notes: (1) ROE calculation: refer to page 202 and 203 of Glencore’s 2013 Annual Report for assumptions and calculations. (2) Illustrative, based on $2.7bn EBIT, being the bottom end of

guidance range.

(2)

0

50

100

150

200

250

300

0

5

10

15

20

25

30

Q105

Q305

Q106

Q306

Q107

Q307

Q108

Q308

Q109

Q309

Q110

Q310

Q111

Q311

Q112

Q312

Q113

Q313

Q114

Current capital employed CCI Index (rebased to 100)

Marketing represents the physical movement of commodities from production source to customers/consumers

Sources of income (and market intelligence)

• Arbitrage opportunities – product, time, geography

• Blending strategies – optimising qualities; delivery

of products in line with contractual requirements

• Financing – working capital terms

• Risk management – manage counterparty and

market risk exposure

• Storage/warehousing – access to and having

logistics assets in strategic locations

• Freight – access to fleet, information on trade flows

• Economies of scale on all of the above

Marketing volumes 2013 H1 2014

Copper Mt 2.8 1.5

Zinc Mt 3.2 1.6

Lead Mt 0.7 0.4

Nickel Mt 226 84

Ferroalloys Mt 3.8 2.2

Alumina/aluminium Mt 13.1 6.0

Iron ore Mt 33.2 29.6

Thermal coal Mt 84.4 46.1

Crude oil/oil products Mbbls 1,113.5 547

Agricultural products Mt 68.7 30.6

Revenues $M 192,819 93,617

31

Producer

Port Shipping Warehouse Delivery to Industrial

Customers

Industrial

Consumers

Extraction Marketing Customer

Inland

storage

&

logistics 3rd party supply

Glencore’s flexible capital model

32

Capital centrally

funded and allocated

Marketing c.$20bn of capital employed

• working capital average turnover

cycle of ~30-35 days

• Quality/nature of asset base

(inventories and receivables)

allows ~80% to be debt-funded

• Marketing financing is frequently

refreshed; average duration of

debt facilities versus underlying

turn is a highly conservative 20x

• 2014 earnings benefit from Viterra

and Xstrata

• Guidance range RoE is 40%-65%

Industrial c.$90bn of capital employed

• target of 30-40% debt-funded; or

<2.5-3x Net Debt/EBITDA

• target RoE is 20-25% for new

capital/projects

• earnings to benefit from ramp-up

of Koniambo, Australia Zinc,

African copper belt, etc

• portfolio optimisation will also

boost returns on equity

Expansionary capex geared to the right commodities and opportunities

33

Focus on modular/brownfield/flexible

investment • revised Caracal capex program primarily limited to

producing assets – approval of further exploration

capex subject to market conditions and results of

nearby program

Copper equivalent production CAGR of

5.5% to 2018; >75% attributable to metals

Capex/opex under constant review: • Askaf Iron Ore project under review in response

to weaker price outlook

• suspension of Australian coal operations for three

weeks in response to low price environment

Copper equivalent growth 2014F-2018F

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Oil

Coal

Ferroalloys

Nickel

Zinc/Lead

Copper

Industrial capex $bn(1) 2013A 2014F 2015F 2016F 2017F

August 2014 forecast 11.1(2) 8.7(2) 6.6

Capitalised interest 0.28 0.19

Koniambo variance 0.38 0.21

Project suspensions (0.30)

Caracal (50% ownership increase) 0.18 0.57

Net capex deferrals/reductions (0.64) 0.63

December 2014F 8.9 7.9 6.6 4.8

Notes: (1) Excludes marketing capex. (2) Excludes Las Bambas

Industrial capex details

34

0

1

2

3

4

5

6

2014F 2015F 2016F 2017F

Metals Coal Oil Ags Capitalised interest

Expansionary capex ($bn) Sustaining capex ($bn)(1)

0

1

2

3

4

5

6

2014F 2015F 2016F 2017F

Metals Coal Ags

4.9

3.6

2.4

1.2

4.1 4.3 4.2

3.6

– 26%

Note: (1) Metals sustaining capex annual ranges: Copper $1.7-2bn, Zinc $700-900M, Nickel 250-300M, Ferroalloys c.$150M. Includes deferred stripping.

Our balance sheet advantage

Asturiana de Zinc, electrolysis plant, Spain

• Maintenance of strong Baa/BBB levels remains a financial target/priority

• Moody’s and S&P’s investment grade credit ratings at Baa2 (stable) and BBB (stable)

• Considered optimal capital structure:

• supports marketing activities –positively differentiated credit positioning from most trading competitors

• enables Glencore to efficiently grow cashflow, earnings and dividends per share

• provides abundant access to capital markets allowing efficient and prudent balance sheet and liquidity management

Robust balance sheet being further strengthened

36

$4.9bn

funds from operations in

H1 2014, up $650M

year on year

33.8%

FFO to Net debt

Minimum: >25%

Target: >30%

2.41x

Net debt to Adjusted

EBITDA

Minimum: <3x

Target: <2.5x

BBB/Baa illustrative target metrics(1)

FFO/Adj. Net Debt(2) Adj. Net Debt(2)/EBITDA

Notes: (1) Estimated rating metrics based on Glencore’s calculation of Adjusted Net debt. (2) Net debt calculated as Net Funding less Readily Marketable Inventories,

including net consideration of $5 billion from the Las Bambas disposal and the Caracal acquisition in July 2014. FFO and EBITDA are last 12 months.

20%

25%

30%

35%

40%

45%

FY

201

2

H1

201

3

FY

201

3

H1

201

4

1.75x

2.00x

2.25x

2.50x

2.75x

3.00x

3.25x

FY

201

2

H1

201

3

FY

201

3

H1

201

4

BBB+/

Baa1

BBB-

/Baa3

BBB/

Baa2

75

85

95

105

115

125

135

145

2013 2014 2015 2016 2017 2018

Optimal balance sheet structure for equity returns, liquidity and cost of capital

37

Strong Baa/BBB optimising market access and funding cost Declining weighted average funding cost (%)

Recent CDS vs peers Commodity outlook supports our rating & equity yield

Nickel

Aluminium

Zinc

Copper

Iron Ore

Oil

Thermal

Coal

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

0

100

200

300

400

500

600

700

800

900

Nov-04 Jan-06 Mar-07 May-08 Jul-09 Sep-10 Nov-11 Jan-13 Mar-14

A-Rated G-Spread

BBB-Rated G-Spread GLEN USD

and EUR

Issuance

(RHS axis)

0

50

100

150

200

250

300

350

03/05/2013 03/09/2013 03/01/2014 03/05/2014 03/09/2014

Rio Tinto

BHP

Glencore

Anglo American

Source: Bloomberg, Barclays, Glencore, consensus estimates.

2.5

3.0

3.5

4.0

4.5

2009 2010 2011 2012 2013 2014

We will continue to focus on return of excess capital to shareholders

• As a minimum base distribution to remain competitive within sector as growth phase completes

• Excess capital to be returned to shareholders in the most efficient manner via appropriate application of base distribution progression, supplemented by buyback continuation and/or special distributions

• Interim distribution +11%

• $1bn equity buyback now c.65% complete

38

Excess operating free cash flow

Source: Factset as of 5 December 2014.

14.2%

9.7%

7.8% 7.4%

3.7%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Glencore Peer 1 Peer 2 Peer 3 Peer 4

2016 consensus FCF yield

Capital structure

maintain strong

BBB/Baa credit

metrics

M&A / Brownfield

projects

screen growth

options against

capital allocation

criteria

Returns to

shareholders

including ongoing

buyback

programme

Criteria:

• risk

• return

• cash

payback

Strong BBB/Baa believed

to be the optimal rating

target supporting the

balance between our

growth strategy and

shareholder returns

• High-returning

opportunistic M&A and

brownfield growth

opportunities screened

against rigorous capital

allocation criteria

• Investment opportunities

also screened against

returns generated from

buybacks

• Generates growth in

profits and FCF

• Ongoing buyback

program should underpin

EPS accretion as well as

P/E multiple

Q&A


Our management structure

40

Nickel

Our functions structure

CEO

Ivan Glasenberg

CFO

Steven Kalmin

Metals & Minerals Energy Agriculture

Ferroalloys

Marketing

Stuart Cutler

Industrial

Gary Nagle

Marketing

Kenny Ives

Industrial

Peter Johnston

Iron Ore

Marketing

Jyothish George

Industrial

Mark Eames

Zinc

Marketing

Daniel Maté

Industrial

Chris Eskdale

Copper

Marketing &

Industrial

Telis Mistakidis

Aluminium

Marketing &

Industrial

Andrew Caplan

Coal

Marketing

Tor Peterson

Industrial

Peter Freyberg

Oil

Marketing &

Industrial

Alex Beard

Agricultural

Products

Marketing &

Industrial

Chris Mahoney

CEO

Ivan Glasenberg

CFO

Steven Kalmin

Legal

Ken Klassen

– Corporate

Development

– Treasury and

Trade Finance

– Accounting

– Insurance

– Tax

– Procurement

– Legal

– Compliance

– IT

– IS

– Health and

Safety

– Sustainable

Development

– Community

Relations

– Public Affairs

– Investor

Relations

– Group Strategy

HR

Gerda Schwindt

IT

Cyril Reol

SD

Michael Fahrbach

Risk

Management

Carlos Perezagua

Communications

and Strategy

Paul Smith

Internal Audit

Nam Phong Ho

Board Audit

Committee

Experienced management team with a proven track record of value creation

Ernest Henry copper concentrator, Australia






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of strategy.















Copper Telis Mistakidis

Alumbrera copper concentrator, Argentina

Topics

1. Glencore Copper Department

• Overview

• Description

2. Katanga Mining

• Production issues

• Power

3. Antapaccay

• Tintaya concentrator restart

• Antapaccay mini expansion

4. Copper Market – where is the surplus?

44

Glencore copper in context

• Third largest global mined copper producer and the world’s largest copper supplier

• Integrated assets (mines, smelters and refineries) and marketing

45

2013 copper production (kt)

0

500

1,000

1,500

2,000

2,500

3,000

Competitor 1 Competitor 2 Glencore Competitor 3 Competitor 4 Competitor 5 Glencore 2014Fsupply

Source: Glencore, annual reports.

Glencore copper assets

46

Mined Cu

N America 90k MT

Asia 60k MT

Australia 260k MT Africa 500k MT S America 660k MT

Horne/CCR 300k MT

Isa/Pasar 600k MT Mopani 200k MT Altonorte 300k MT

Kazzinc 70k MT

Smelter/Refinery

Capability across the copper raw materials chain

Mt Isa Cobar Antapaccay Katanga Nkana

Townsville

Altonorte Horne Pasar Mopani Mt Isa

CCR Pasar Mopani

EHM

Marketing

3rd party 3rd party

3rd party

Alumbrera

Collahuasi

Antamina

3rd party

3rd party

3rd party

Lomas Bayas

3rd party

Mopani SXEW

3rd party

Mutanda Mufulira

• Integrated industrial assets and marketing

• One million MT custom smelting and refining

• Capability to process complex concentrates with precious metals and deleterious elements.

Min

ing

S

me

ltin

g

Re

fin

ing

47

Mined production growth

48

Own source mined copper production (kt)

Note: does not include copper from Kidd, Kazzinc and Ni operations

Merger

2008 2009 2010 2011 2012 2013 2014F 2015F 2016F 2017F 2018F

Total copper Former Xstrata

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2012A 2013A 2014F 2015F 2016F 2017F

African Copper Collahuasi Antamina Other South America Australia By-product

Mined production growth by region

49

Own source mined copper production (kt)

Source: Glencore

210

165F

16

16

2 8

2

120

130

140

150

160

170

180

190

200

210

220

Cu produtionbudget

Power direct Power (indirect)& Mechanical

Electrical Projects delays Reducedsulphide / ASCu

Cu productionactual

Cu

Ca

tho

de (

‘000)

Katanga 2014 production issues

50

Standby generators deployment

51

Generating Capacity

UNITS MW

KTC 4 2

2 2

KTO 1 2

1 1

1 1

Luilu 1 2

KOV (Convert to Co-Gen) 4 7

Sub – Total 17

Co-Gen 1 (New at Luilu:leach,CCDs)

Generator farm (6.6 and 15kV) 6 10

Sub - Total 27

Co-Gen 2 (New at Luilu:EW2/3)

Generator farm (33kV) 6 10

Total 37

Now

April

Global Power Project – update

52

Description

• 450MW for Kamoto Copper Company and partners

• 350MW of new power and 1000MW transmission

from INGA to Kolwezi

• Project cost – $368M, Lots 1 to 14

• Reimbursed via 40% credit to power bills

• Additional 10% withheld for maintenance fund

• 75MW available to the population

Power milestones

• Transmission from INGA to Kolwezi from 40MW to

250MW Q1 2013

• 25MW (Nzilo) Q4 2014

• 165MW (G-27) Q4 2015

• 165MW (G-28) Q2 2017

Project status

• G27 disassembled and shipped to factory for repair

• 60% of transformers for the converter station have

passed factory acceptance. Remaining 40% to be

tested before year end. Commissioning expected

January 2016

• Synchronous condenser #2 awaiting confirmation

from SNEL, expected December 2014

• Fungurume transformer being commissioned now

Global Power Project – timeline

53

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Lot 3 Unit 3 - Nzilo Quick Fix

Lot 4 Unit G27 Inga refurbishment

Lot 5 Unit G28 Inga refurbishment

Lot 6 Convertor transformer DC Link Pole 1

Lot 7 Convertor transformer DC Link Pole 2

Lot 8 OHL PDI-SCI Reinforcement

Lot 9 Additional Harmonic filters

Lot 10 Additional Synchronous compensator

Lot 11 RO Upgrading HV equipment

Lot 12 Auto-transformer SCK-RO #1 Installation

Lot 13 Auto-transformer SCK-RO #1 Installation

Lot 14 Studies and Final design

Additional power from lots 3, 4 & 5

Additional power available on the grid 25

Cumulative power added 25

2013 2014 2015 2016 2017

25 165

165

190

165

165

355

Katanga ramp-up drives future production growth

54

Copper cathode production (kt); Capex $M

Source: Glencore

22

42

52

58

61

87

16

5

24

2

27

4

28

6

30

1

0

500

1,000

1,500

2,000

2,500

3,000

3,500

0

50

100

150

200

250

300

350

2008 2009 2010 2011 2012 2013 2014F 2015F 2016F 2017F 2018F

Cu

k T

on

ne

s

Cu Cathode Production CAPEX

Katanga ramp-up drives future production growth

55

Copper cathode production (kt); Capex $M

Source: Glencore

22

42

52

58

61

87

16

5

24

2

27

4

28

6

30

1

0

500

1,000

1,500

2,000

2,500

3,000

3,500

0

50

100

150

200

250

300

350

2008 2009 2010 2011 2012 2013 2014F 2015F 2016F 2017F 2018F

Cu

k T

on

ne

s

Cu Cathode Production CAPEX

New CM5 SAG Mill installed and commissioned

56

New oxide floatation cells installed and commissioned

57

New concentrate roaster commissioned

58

Solvent Extraction commissioned

59

200ktpa EW2 in production

60

First cathodes harvested from 80ktpa EW3 expansion

61

Antapaccay – Tintaya Concentrator Restart

Tintaya restart

• Existing Tintaya concentrator to process 20 ktpd of ore from Antapaccay mine

• Startup in May 2015

• 34kt per year Cu in concs for LOM avg. 43kt per year Cu in concs for the first 5 years

• Capex of $64M:

• Mining: $25M

• Concentrator: $27M

• Infrastructure & Other: $12M

• Capital Intensity: $1.9M per 1,000t of Cu production

• Project NPV10% of $290M

• Project IRR of 119%

• Government approvals received this month

62

Antapaccay – Incremental Plant Expansion

Expansion of Antapaccay plant:

• Process 82 ktpd of ore from Antapaccay mine using existing infrastructure in 2016

• capacity incrementally increased; 70 ktpd (design) to 77 ktpd (current) and now 82 ktpd

• total Cu in concs >200ktpa (inc Tintaya)

• 9kt per year Cu in concs for LOM avg. 11kt per year Cu in concs for the first 5 years

• Capex of $34M:

• Mining: $7M

• Plant: $27M

• Capital Intensity: $3.8M per 1,000t of Cu production

• Project NPV 10% of $140M

• Project IRR of 117 %

63

42 10

157

209

0

50

100

150

200

250

77 ktpdAntapaccay

20 ktpdTintaya

5 ktpdAntapaccay

Cu C

on

t. in

Con

c. (k

t p

er

yr)

Cu in concentrate

per year

Tier 1 asset portfolio and cost structure

64

Q1 First quartile cost

position achieved for

asset portfolio in 2014

Post-integration

cost efficiencies

achieved. Focus

now on industrial

asset structures

Q1 Q2 Q3 Q4

Illustrative Copper C1 cash cost curve

2013A

$1.65/lb

Unit mine costs drop through brownfield expansion by 2016:

• African copper: $1.60/lb • Collahuasi: $1.47/lb • Antapaccay: $1.00/lb • Antamina: $0.14/lb • Australia: $1.70/lb 2014F

$1.42/lb

2016F

$1.36/lb

c.$300M industrial merger

synergies and other

cost savings by end

2014

Copper market

Altonorte anodes, Antofagasta Port, Chile

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000Jul-0

8

Sep-0

8

No

v-0

8

Jan-0

9

Ma

r-0

9

Ma

y-0

9

Jul-0

9

Sep-0

9

No

v-0

9

Jan-1

0

Ma

r-1

0

Ma

y-1

0

Jul-1

0

Sep-1

0

No

v-1

0

Jan-1

1

Ma

r-1

1

Ma

y-1

1

Jul-1

1

Sep-1

1

No

v-1

1

Jan-1

2

Ma

r-1

2

Ma

y-1

2

Jul-1

2

Sep-1

2

No

v-1

2

Jan-1

3

Ma

r-1

3

Ma

y-1

3

Jul-1

3

Sep-1

3

No

v-1

3

Jan-1

4

Ma

r-1

4

Ma

y-1

4

Jul-1

4

Sep-1

4

LME SHFE COMEX

Global Exchange stocks are at lowest levels since 2008

66 Source: Bloomberg, Reuters

Global copper warehouse stocks are reducing further

67

722k

245k

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Jan 2013 Jun 2013 Jan 2014 Jun 2014 Dec 2014

LME COMEX SHFE CHINA BONDED

Global warehouse copper stocks (kt Cu)

Source: Bloomberg, Reuters, Glencore estimates

0

500

1,000

1,500

2,000

2,500

3,000

2006 2007 2008 2009 2010 2011 2012 2013 2014

Chinese Copper scrap imports are falling

68

19% yoy

13% yoy

Chinese copper scrap net imports (kt contained Cu)

Source: China customs data

2011 2012 2013 2013 vs

2012

2013 Jan-

Oct

2014 Jan-

Oct YoY Chg 2014E YoY Chg

Copper Cathode

Imports 2'825 3'396 3'198 (5.8%) 2'557 2'948 15.3% 3'538 10.6%

Exports 156 274 293 7.1% 246 220 (10.7%) 264 (10.0%)

Net Imports 2'669 3'122 2'905 (7.0%) 2'311 2'728 18.1% 3'274 12.7%

Domestic Production 5'197 5'824 6'840 17.4% 5'763 6'420 11.4% 7'704 12.6%

Primary 3'386 3'939 4'686 19.0% 3'755 4'316 14.9% 5'179 10.5%

Secondary 1'811 1'885 2'153 14.3% 2'008 2'104 4.8% 2'525 17.2%

Apparent Consumption 7'865 8'946 9'745 8.9% 8'074 9'148 13.3% 10'978 12.7%

Copper Scrap

Imports - gross weight 4'687 4'859 4'373 (10.0%) 3'549 3'187 (10.2%) 3'824 (12.5%)

Content 45.0% 50.0% 50.0% 50.0% 50.0%

Adjusted Imports - mtu 2'109 2'430 2'186 (10.0%) 1'774 1'594 (10.2%) 1'912 (12.5%)

Exports 2 1.5 1 (48.4%) 1 1 1 58.3%

Net Imports 2'108 2'428 2'186 (10.0%) 1'774 1'593 (10.2%) 1'911 (12.6%)

Domestic Production 924 1'064 1'226 15.2% 1'022 1'179 15.4% 1'415 15.4%

Apparent Consumption 3'032 3'492 3'412 (2.3%) 2'796 2'772 (0.9%) 3'326 (2.5%)

Chinese imports and apparent consumption

69 15% yoy Source: China customs data

China Nonferrous Metals Industry Association

Minus:

Kennecott 100k

Escondida 150k

Alumbrera 50k

Surplus

now 90k

MT?

Demand vs Supply per ICSG and Wood Mackenzie

70 Source: ICSG, Wood Mackenzie Global copper short-term outlook, November 2014

Implications of the estimates:

• Implied mine production growth of ~1 million MT between 2014 and 2015

(6% growth)

• Where is the supply coming from?

2014 2015

ICSG Apr ‘14 Estimate

~400 kt

surplus

~600 kt

surplus

ICSG Oct ‘14 Estimate

~300 kt

deficit

(Δ 700 kt lower)

~390 kt

surplus

(Δ 210 kt lower)

WoodMac Nov ‘14

Estimate

180 kt

surplus

202 kt

surplus

Copper Demand/Supply balance estimates

Latest 2015 supply forecasts may still be very optimistic

71 Source: Wood Mackenzie Global copper short-term outlook, November 2014

+320kt?

• Production double counted Frontier at Mopani. 2014 production

is 720 kt;

• Production and commissioning issues. 2015 to be 850 kt

+87kt?

• OT phase 2 not next year as company states only open pit next

year

+72kt? Where does this come from?

+328kt?

• Major projects commissioned in 2014 (DMH, Caserones, Sierra

Gorda)

• Escondida lower by ~150kt

• Codelco lower by ~90kt (cathodes)

• Toromocho operating at 25% capacity

• Las Bambas delayed to 2016

• Constancia commissioning?

+353kt?

• Major projects commissioned in 2014 (Morenci, Eagle, Mt

Milligan, Nunavik)

• Operational incidents (Mt Polley tailings dam failure – mine shut

down, Buenavista- spillage in river and schedule pushed out

into 2016)

• Kennecott lower production (100kt)

+350kt?

• Indonesian concentrates export permits

• Production and labour issues at Grasberg - operating at 80%

+50kt? Alumbrera lower production

+200kt?

• DRC running at 950kt in 2014. To go to just over 1 mt in 2015

~1.8 million MT?

2015 copper supply forecast keeps changing

22,000

22,500

23,000

23,500

24,000

24,500

25,000

2010 Q1 2010 Q3 2011 Q1 2011 Q3 2012 Q1 2012 Q3 2013 Q1 2013 Q4 2014 Q2

72

2015 supply forecast as estimated in each period (kt Cu)

Source: Wood Mackenzie Global copper long-term outlook Q1 2010 to Q3 2014, Glencore estimates

-1.6Mt

• Project deferrals;

• Commissioning delays;

• Revised mine plans.

• Brookhunt and ICSG give 390 kt surplus guidance

• Taking the previous slide, deduct 1.8 Mt = Deficit of 1.4 - 1.6 Mt for 2015?

• Consumption - the world is emerging from the biggest recession in 100 years

Make your

own mind up?

Thank you

73

Appendix: Copper asset update

Kantanga Phase V, EW3 under commissioning, DRC

Katanga expansion nearing completion

New KOV pit crusher completed

76

Installation of new concentrate stockpile shed

77

Heap leach extension complete

78

79

DRC power project

Refurbishment of Inga Unit G27, DRC

Mopani – synclinorium and deeps project update

New acid plant, Mufilira smelter, Zambia

Synclinorium – Project Site

81

Synclinorium – New Winder Main Shaft

82

Synclinorium – New Winder

83

Synclinorium – New Winder House

84

Synclinorium – Sub Station

85

Synclinorium – New Generator Building

86

Synclinorium – Loading Station – 1231m level

87

Synclinorium – Loading Station – 1231m Level

88

Synclinorium – Ventilation Shaft

89

Mufulira Deeps – Raise Bore – 500m Lift

90

Mindola Deeps – 4960L

91

92

Newlands CHPP, Australia

Draft

schedule





09:45 - Break




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93








of strategy.















Coal Tor Peterson, Peter Freyberg

Abbot Point, Australia

Delivering Leading Value

Leading Diversified Portfolio

• 170 Mtpa capacity

• Industry leading margins

• Underground/Opencut

• Export/Domestic

• Thermal/Coking

• 3 continents

Operational Excellence

• Environment

• Community

• Safety

• Equipment

• Project delivery

Market Driven

• Supply discipline

• Blending synergies

• Trading leverage

Shareholder Returns

• Expansionary capital spend down 75%

• EBITDA margin 26%

95

~$50/t

FOB cash cost

achieved in 2014

~150Mt

of consolidated

production in 2015F

c.26%

EBITDA margin in

H1 2014

c.90Mt

of marketed volumes

2014

Leading managed coal portfolio

96

Industrial assets comprise 22 coal complexes totaling 196 million tonnes capacity (170mt consolidated capacity), with operations and assets in 3 countries and key

marketing offices spread across 19 countries

0 10 20 30 40

Others

BHP

Anglo

Drummond

Glencore

Mt

COLOMBIA

0 10 20 30 40 50 60

Sasol

Exxaro

BHPB

Anglo

Glencore

Mt

SOUTH AFRICA

0 20 40 60 80 100

Anglo

Peabody

Rio Tinto

BHPB

Glencore

Mt

AUSTRALIA

#1 in high energy export coal

Significant position in export metallurgical coal

Diversified global footprint

Additional 90Mt of traded and agency tonnage

Data: Managed coal production, Australia proforma for full year Clermont. Includes export and domestic coal sales

22 operating coal complexes

Exporting equity coal through 9 ports

40Mtpa, low cost rail business

Clermont

Delivering industry leading margins

97 *Reflects publically reported June 2014 half year results of major diversified coal competitors

Glencore

Coal mining business EBITDA margin first half 2014*

Coal markets update

Thermal coal, Rolleston mine, Australia

Export thermal

Export coking

Domestic thermal

3rd Party

Responding to the market

Relatively strong marketing

contribution in challenging

environment

Supply discipline

• Considered supply response

• Flexible portfolio

Market arbitrage

• Domestic versus export

• Flexible origination

Blending synergies

• Quality control

• Tailored products

Significant marketing contribution

• Trading and freight leverage

99

A diversified portfolio (sales volumes)

Coal remains fundamental to Asian energy demand

IEA New Policies scenario by 2025

• Globally, net 440 GW of new coal fired generation capacity required

• 530 GW new capacity primarily in Asia

• 83 GW closed primarily in USA and EU

• Asian coal demand to increase by more than 1Btpa*

• 500Mtpa demand increase outside China

• Africa/Turkey and Latin American coal demand to increase by 75Mtpa*

• South Africa and Brazil as key drivers

• Resource constrained Asia drives seaborne coal demand growth

• Korea, Philippines, Malaysia, Vietnam

• Indian import growth required to supplement domestic supply

100

0

200

400

600

800

1000

1200

China India OtherAsia

Africa &Sth Am.

USA ROW

GW

2012

2020

2025

Net 440GW new coal-fired power stations

Sources: IEA WEO2014, New Policies Scenario, Current Policies Scenario * based on 2012 average global energy content 4920kcal/kg nar

A further 255 GW of coal

fired generation (800Mtpa*

coal), would be required in

Asia by 2025 under IEA

Current Policies scenario.

0 200 400 600 800 1000

USD/t

Million Tonnes

Expect further rationalisation and delayed investment

101 Source: Glencore

FOB seaborne thermal coal cash margins at current market prices (US$/t)

c.25% of seaborne supply remains cash negative • Producers with USD cost base most impacted

• USA thermal exports down 16Mt

• Indonesia bituminous exports declined 8Mt

• Short-term mine plan changes are unsustainable

Glencore export

thermal coal average

+ve

-ve

0

Investment delays will lead to price recovery

• Long term demand fundamentals

remain intact

• Demand growth is more than just a

China story

• Some high cost supplies are closing

• Resource depletion restricts supply

• New capacity investment delayed

• Positive longer term outlook

102

Vo

lum

e

Time

Seaborne thermal coal market

Historical demand

7% pa

Base demand

4.5%pa

Existing Supply

Committed Supply

Investment

required

Coal industrial business overview

We deliver – safely

104

Group coal safety performance

GCOM: pre-shift safety discussion

Emergency preparedness training

We deliver … with sustainable land outcomes

105

Liddell rehabilitation

Cattle trial on rehabilitated land

We deliver … using leading environmental technologies

106

Water treatment plant Environmental monitoring

Generation using waste gas

We deliver … value to the communities we operate in

107

Community projects Consultation Australia

Consultation Colombia Reconciliation Action Plan

We deliver through industry leading operational performance

108

Opencuts: +26% productivity Undergrounds: No.1 in Australia

Improvement in Tier 1 loading unit performance

Saleable production (Mt) based on FY13/14

We deliver by focusing on margins

• Reduced overheads

• Optimisation of underground rosters

• 20% improvement in reliability of

underground development

• Increased productivities – 26%

improvement in productivity of Tier 1

shovels & excavators

• Removal of high cost production

• Rationalisation of contractor spend

• Negotiations with key suppliers

• New production firmly in first quartile

(Ulan West, Tweefontein,

Wonderfontein, Clermont)

109

$1.8bn

cost savings through efficiencies

since 2012

Production volumes nearing steady state as legacy projects are delivered

110 *Production figures on a consolidated basis except Cerrejón 33% equity interest

Own source consolidated production (Mt)

0

25

50

75

100

125

150

175

2012A 2013A 2014F 2015F 2016F 2017F

Australia thermal SA thermal Colombia thermal Australia coking Australia SS

Coal assets – update and future opportunities

Ravensworth North, Australia

112

We deliver value in operations – Clermont case study

The past The future

Note 1: In-Pit crushing and conveying system

Value Delivered

$60m NPV

Reduced haulage costs Glencore mine planning

expertise identifies efficiencies

achievable through alternative

hauling strategies

Productivity Digger fleet consistently performed

below Glencore standards,

foregoing ~1Mtpa in annual coal

production

Increased productivity Improved fleet utilisation

Revised organisation structure

Increase production optionality

$100m NPV

Coal preparation Costly partial washing

Coal preparation Identified opportunity to

bypass all coal

$80m NPV

Haulage costs Expensive ex-pit hauls due to

relocation of IPCC1 in 2012

following operational issues

• 50:50 Joint Venture with Peabody

• Synergies realised through:

• Removal of surface boundary constraints

• Removal of stratified lease interaction

• Optimised open cut mine planning

• Access under-utilised mine and rail infrastructure

• Low capital

• Mine managed by Glencore, separate marketing

• 6 Mtpa

• 100Mt reserves

113

We deliver synergies – United / Wambo Joint Venture

Lease consolidation (red line)

Wambo CHPP

United

Coal and

Allied

Wambo

rail loop

Wambo UG

United / Wambo

(Stratified) Wambo

United / Wambo

(Stratified)

Glencore & Peabody co-operation

unlocking material value for

shareholders

Open Cut Development

Eastern Emplacement

Noise and visual bund

We work hard for our License to Operate: Bulga LOM extension

• Performance driven culture

• Detailed planning and assessment

• Clear understanding of stakeholder

engagement

- Community

- Government

• Proven track record

- Safety

- Environmental

- Community inclusion

114

Bulga Optimisation Project

Approved Dec

2014

We deliver projects – on time, on budget

115

-

2

4

6

8

-

5

10

15

2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

Str

ip r

ati

o

Pro

du

cti

on

(M

t)

ROM Product Strip ratio

Ravensworth North Tweefontein Optimisation Project Ulan West

Rav North production build up TWF – new rapid train load out Ulan West – first shear

Conclusion

116

Challenging market

- Coking coal in balance, however low prices are expected to lead to further supply reductions

- Thermal coal heading towards supply deficits

- Margins will need to increase to support any new capacity

Quality resources

- Well positioned with unrivalled optionality

Capital discipline

- Capital only invested if meets high internal return requirement

Delivering value

- Leading diversified portfolio

- Industry leading productivities

- Operational excellence

- Market driven

- Realise synergies through M & A

- Shareholder returns

Appendix

118

Supply growth exceeded demand

• Chinese repositioning creating uncertainty

Demand growth forecast at +4.5% pa

(+40Mtpa) over next 3 years

• Supply growth expected to lag

Thermal coal margins will need to increase

to support investment in new capacity

Market update – thermal coal supply and demand

119

0

200

400

600

800

1,000

1,200

2011 2012 2013 2014F 2015F 2016F 2017F

China India Japan Korea

Taiwan Germany Other

-70

-60

-50

-40

-30

-20

-10

0

10

20

2011 2012 2013 2014F 2015F 2016F 2017F

Seaborne thermal coal demand (Mt)

Supply Demand Balance (Mt)

1,076

792

880 931

946 966

1,019

Source: Glencore

Demand reduction from 2013 to 2014

• Supply growth is being constrained due to demand

growth and lower prices during 2013 / 2014

Constrained demand growth forecast

• < 2% over the next 3 years

Current metallurgical coal margins are

expected to lead to further supply

reductions

Market update – metallurgical coal supply and demand

120

0

50

100

150

200

250

300

350

400

2011 2012 2013 2014F 2015F 2016F 2017F

China India Japan Korea

Taiwan EU Other-14

-12

-10

-8

-6

-4

-2

0

2

2011 2012 2013 2014F 2015F 2016F 2017F

Seaborne metallurgical coal demand (Mt)

Supply Demand Balance (Mt)

261

280

312 301

320 326 327

Source: Glencore


Zinc ingot, Asturiana de Zinc, Spain





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122


This document contains statements that are, or may be deemed to be, “forward looking statements” which are prospective in nature. These forward looking statements may be

identified by the use of forward looking terminology, or the negative thereof such as "plans", "expects" or "does not expect", "is expected", "continues", "assumes", "is subject to",

"budget", "scheduled", "estimates", "aims", "forecasts", "risks", "intends", "positioned", "predicts", "anticipates" or "does not anticipate", or "believes", or variations of such words or

comparable terminology and phrases or statements that certain actions, events or results "may", "could", "should", “shall”, "would", "might" or "will" be taken, occur or be achieved.

Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward-looking statements are not based on historical facts, but

rather on current predictions, expectations, beliefs, opinions, plans, objectives, goals, intentions and projections about future events, results of operations, prospects, financial condition

and discussions of strategy.




Neither Glencore nor any of its associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or

implied in any forward-looking statements in this document will actually occur. You are cautioned not to place undue reliance on these forward-looking statements which only speak as

of the date of this document. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure and Transparency Rules of the

Financial Conduct Authority and the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited and the Listing Requirements of the Johannesburg Stock

Exchange Limited), Glencore is not under any obligation and Glencore and its affiliates expressly disclaim any intention, obligation or undertaking to update or revise any forward

looking statements, whether as a result of new information, future events or otherwise. This document shall not, under any circumstances, create any implication that there has been

no change in the business or affairs of Glencore since the date of this document or that the information contained herein is correct as at any time subsequent to its date.

No statement in this document is intended as a profit forecast or a profit estimate and no statement in this document should be interpreted to mean that earnings per Glencore share

for the current or future financial years would necessarily match or exceed the historical published earnings per Glencore share.



Zinc Daniel Maté, Chris Eskdale

Removing dross from top of furnace, CEZ zinc refinery, Canada

Zinc summary

Zinc market fundamentals remain strong and continue to improve

Our industry leading zinc business combines world class zinc assets with our

marketing reach and expertise

Unique combination of mines and smelters in a single company

• mined production of 1.4Mt in 2013 rising to 1.6Mt by 2016 – #1 globally

• smelter production of ~1.36Mt – #1 globally. Brings additional exposure to ~250kt zinc units

through over-recovery / escalator capture

• resource base provides weighted average mine lives >40 years on current Measured and

Indicated resource

• key growth projects provide additional zinc and cost/capital efficiencies at an attractive stage of

the price cycle

Industrial assets and marketing flows managed under one roof, two-way

information flow

• one global concentrates/metal book and one pool of knowledge.

• market input guides assets to produce the economically optimal product mix

• sharing of best practices across global zinc assets

• mine output and 3rd party tonnage flowing to destination of optimal economic return

124

Global zinc market

Concentrate loading facility for McArthur River zinc mine, Australia

World zinc metal consumption 2012A – 2019F

• Consumption growth in 2012-2014 has been c.3.7% y-o-y

• 2014 is expected to be in a deficit of 260-270kt

• Stocks (LME + SHFE and bonded warehouse in China) have declined for each of

the last 12 consecutive quarters

• This translates to incremental metal demand of 550-600kt of zinc metal per year

126

Yearly global zinc metal consumption (kt Zn)

10,000

11,000

12,000

13,000

14,000

15,000

16,000

17,000

2012 2013 2014F 2015F 2016F 2017F 2018F 2019F

Source: Glencore estimates, Wood Mackenzie, CRU.

127

Where will these units come from?

Concentrates requirement, production and deficit outlook

128

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2015 2016 2017 2018 2019

Non-China mined Zn concs production (kt Zn)

368

758

506

360 293

0

100

200

300

400

500

600

700

800

900

1000

2015 2016 2017 2018 2019

Additional Zn concs required (kt Zn)

• Approximately additional 3Mt of zinc in concentrates is needed in the next 5 years to meet

forecast metal demand (and balance the current c.260-270kt metal deficit)

• Non-Chinese mine production is forecast to add a net 600-650kt of zinc in concentrates over

2015-2019

• Non-Chinese monthly zinc mine production will start declining in Q3 2015 and flatten

afterwards

• Closure of Century and Lisheen mines is expected to remove ~600kt of zinc contained per year

• The market can only be balanced by higher Chinese mine production, further drawdowns from

metal stocks and/or yet to be approved mine projects


270 235

335

-55

185

315 310 308

205 183

368

758

506

360 293

$1,382

$3,275

$3,242

$1,875

$1,655

$2,161 $2,194

$1,948

$1,910

$2,161

0

500

1,000

1,500

2,000

2,500

3,000

3,500

-100

0

100

200

300

400

500

600

700

800

2005 2007 2009 2011 2013 2015F 2017F 2019F

Chinese mine production

• During the last 10 years, Chinese mine production has on average increased 225kt per year

• To meet global zinc metal demand, Chinese mine production would need to increase by

c.2-2.5Mt of zinc in concentrates over the next 5 years – an average of c.450-500kt per year

129

Annual change in Chinese zinc mine production (kt zinc in concentrate)

Zinc concs production

growth: 8.2%

Zinc concs production

growth: 7.5%

REQUIRED Zinc concs

production growth: 8.9%

c.450-500kt p.a.

c.225kt p.a.

LME Zn price

Zn $/t kt Zn


2014F 2016F

Mine deficit can only partially be covered by available stock

130

155

545

293

147 80

368

758

506

360

293

0

100

200

300

400

500

600

700

800

2015 2016 2017 2018 2019

Concentrate deficit

Chinese production increasebased on 3 year average

Gap between Chinese concs required and forecast (kt Zn)

0

200

400

600

800

1000

1200

1400

1600

1800

2012 2013 2014 2015 2016 2017 2018 2019

Forecast zinc metal stocks* (kt Zn)

• Assuming Chinese mine production increases c.210-220kt per year, there will be a

global deficit of c.1.0-1.5Mt of zinc in concentrates over the forecast period

• Deficit of concentrates will result in drawdown of metal stocks

• 2014 forecast inventory drawdown of 263kt

1’200 1’100


*Reported Exchange Stocks + GIAG estimate of BWHSE stocks.

c.213kt p.a.

Price is closely correlated to available stock levels

• Historically, zinc prices have responded to the upside as the “stocks:consumption” ratio approaches 3 weeks of zinc metal consumption

131

$779 $828

$1,048

$1,382

$3,275 $3,242

$1,875

$1,655

$2,161 $2,193

$1,948 $1,910

$2,161

3.6

4

3.2

1.9

0.4

0.7

1.5

3.4

4.4

5

6.5

5.6

4.4

0

1

2

3

4

5

6

70

500

1,000

1,500

2,000

2,500

3,000

3,500

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014F

LME Zn price

Stocks consumption ratio

LME zinc price ($/t) vs stocks to consumption ratio (weeks)

Inverse weeks

stocks:consumption

ratio

LME Zn price $/t

Source: Glencore estimates, Wood Mackenzie, Bloomberg, CRU.

Zinc metal stocks outlook

• Stocks are forecast to fall below the critical “stocks:consumption” inflection point of 3 weeks consumption

132

-3

-2

-1

0

1

2

3

4

5

Downside (2.8% zinc demand growth)

Base (3.8% zinc demand growth)

Upside (4.8% zinc demand growth)

Sensitivity of zinc metal stocks to global zinc demand

Feb 2016 Apr 2016 Oct 2016

Inflection point Weeks consumption


2014F 2015F 2016F 2017F 2019F 2018F

Zinc industrial overview

McArthur River zinc mine metallurgical plant, Australia

Glencore zinc assets

134

Industrial assets comprise: 24 mines, 7 zinc smelters, 6 lead smelters/refineries with operations and assets in 12 countries and key marketing offices spread across

5 continents, ~50k employees

A large long-life, low-cost, optimised asset base

Expansions – delivery of 3 Australian projects

• capex spend on budget

• Lady Loretta project ahead of schedule

“Steady State” operations

• benchmarking and subsequent cost

reduction/turnaround projects – savings of

~$50 million

• smelters – commercial and technical

integration

• cost synergies of >$100 million achieved vs.

initial integration assessment of $70 million

• zinc sustaining capex declining to normalised

levels of around $700-900 million from 2016

135

Illustrative Zinc C1 cash cost curve

Q1 Q2 Q3 Q4

Zn: 2013

61 c/lb

Zn: 2016

43 c/lb Australian expansions

underpin a sustainable

reduction in C1 cash costs 1.6Mt

low-cost zinc

production by 2016

+40 yrs

mine life, based on

current M+I resource of

c.52Mt

Note: Glencore estimated C1 cash cost in real terms.

Forecast zinc mine production profile

136

1,399 1,380

1,580 1,620 1,640

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2013A 2014F 2015F 2016F 2017F

Australia Kazzinc North America

Antamina Other Zinc Glencore Smelting Capacity

Own source contained zinc mine production (kt zinc)

Source: Glencore, smelting capacity represents 100% production.

Australian expansion projects update

Mt Isa Operations:

• Capital cost of US$245M for new hoisting shaft and

associated infrastructure

• Nov 2014 run-rate of 4.3Mtpa ore mined

• Hoist commissioning anticipated in Q1 2015

• Sustainable 4.5Mtpa ore mined run rate by Q2 2015

Lady Loretta:

• Capital cost of ~US$350M

• Project on budget with production ramping up to

1.6Mtpa by H2 2015

• 0.6Mt ore mined in 2013

• Current run-rate of 1Mtpa ore mined

McArthur River:

• Handed over to operations and commenced

commissioning in H1 2014

• Ramp-up challenges encountered during H2 2014,

particularly in relation to flotation and dewatering

circuits

• Residual issues well understood and being

addressed

• Expecting annualised zinc production of 330kt

contained metal by end Dec 2014, representing

>90% of design capacity

MRM Processing Plant

Rock bolting, Lady Loretta mine

137

Conclusion

• Zinc market fundamentals remain strong and continue to improve

• Our industry leading zinc business combines world class zinc assets with

our marketing reach and expertise • unique combination of mines and smelters in a single company

• industrial assets fully integrated into global marketing flows

• Glencore’s key growth projects provide additional zinc and cost / capital

efficiencies at an attractive stage of the price cycle

• cost position of c.61 c/lb in 2013, falling to c.43 c/lb in 2016

• zinc sustaining capex declining to normalized levels of around $700-900 million from 2016

138

Q&A

George Fisher underground mine shift change, Australia

140


Granulated nickel matte, Sudbury, Canada





09:45 - Break




11:40 - Break



141








of strategy.















Nickel Kenny Ives, Peter Johnston

Exploration drilling, Raglan, Canada

Nickel highlights

Nickel market transitioning to deficit; balanced 2015 and deficits thereafter • nickel demand growth conservatively projected at c.4.5% p.a.

• substantial deficits forecast over the outlook period

Top 3 integrated nickel producer • 2013 own source production of 98.4kt, rising to 140-150kt by 2016

• delivery of additional volumes into a growing deficit, underpinned by Koniambo ramp-up

– first quartile C1 cost position of around $3.10/lb in 2014, 2016 cost position of c.$4.00/lb

• total nickel capex declining from a peak of c.$1.9 billion in 2012 to a normalised level of

c.$300-400 million from 2016(1)

• SAFENICKEL rolled out across business

Full integration of marketing and industrial assets guides investment

decisions, M&A activity and product sales • marketed c.200kt of nickel in 2013 and 2014

• focus on profitability vs. units traded

• industry leading intelligence and unparalleled global coverage

143 Note: (1) Excludes any unapproved expansionary capital

Sustainable Development

144

Our Social License to operate is granted by our stakeholders and maintained through a strategic approach focused on delivering results

Our Strategy Our Safety (TRIFR)

14.6

13.5

10.3

10.9

7.9

6.3

5.6

6.6

2007 2008 2009 2010 2011 2012 2013 2014YTD

Health and Safety

• Safety

• Security

• Health and Hygiene

• Community Health

and Safety

Stakeholder Engagement

• Community/

Stakeholder Relations

• Internal

Communication

• Government Relations

• Media/External

Relations

Environmental Stewardship

• Energy / GHG

• Water

• Land Use / Biodiversity

• Climate Change

Social Responsibility

• Human Rights

• Corporate Social

Investment

• Local enterprise

development

• License to Market

• Impact and Opportunity

Management

• Fatality free since 2012

• Implementation of the Glencore fatal

hazard protocols at all operations.

• No major environmental incidents for

last 3 years

Nickel industrial overview

Sudbury environmental lab, Canada

Nickel assets overview

146

Operations

Raglan (Nunavik, Northern Québec, Canada)

• 4 Mines, Mill, Power plant, Concentrator

• Primary metals are nickel and copper

• Palladium/platinum, cobalt are also produced

• Employs approximately 950 people

Sudbury (Ontario, Canada)

• 2 mines, Mill and Smelter

• Primary metals are nickel, copper and cobalt

• Palladium/platinum are also produced

• Employs approximately 1,400 people

147

Operations

Murrin Murrin (Western Australia)

• Fully integrated hydro metallurgical facility producing LME grade nickel and cobalt

• Only Surviving Gen 1 HPAL plant – technology intended primarily for the treatment of Limonitic type ores

• Mines, mill, refinery, power plant

• Employs approximately 1,100 people

Nikkelverk (Kristiansand, Norway)

• Refinery

• Primary metals refined are nickel, copper, cobalt and precious metals

• Capacity to produce 92,000 tonnes of nickel per year

• Employs approximately 500 people

148

A large, long-life, low-cost optimised asset base

149

$140M

of merger cost

synergies realised by

end 2014

$4.00/lb

C1 to be achieved in

2016F

70%

reduction in capex in

2015

Q1 Q2 Q3 Q4

Illustrative Nickel C1 metals cash cost curve

2016F

$4.00/lb

2014F

$3.10/lb

140-

150kt low-cost nickel

production by 2016

+20yrs

mine life, based on

current resource of

c.13.5Mt

0

20

40

60

80

100

120

140

160

2012A 2013A 2014F 2015F 2016F 2017F

Australia Canada New Caledonia Dominican Republic

Koniambo guidance

2014: 10 to 18kt Ni

2015: 25 to 40kt Ni

2016: > 50kt Ni to nameplate capacity

Koniambo ramp-up drives future production growth

150

Own source contained nickel production (kt)

Source: Glencore

102.5

98 +100

120-135

150-160 150-160

3.9

5.3 5.5 5.5

0.8

1.7

3.0

4.0

5.0

6.0

7.0

X Boardapproval 2007

X Boardrevision 2011

G ForecastSep 2013

G ForecastDec 2014

Project execution Commissioning & ramp up

Koniambo construction complete

151

Construction cost ($ billion)

6.3

7.2

Key milestones

Commercial production line 1 September 2013

Commercial production line 2 February 2014

Power station line 1 synchronisation April 2014

Power station line 2 synchronisation September 2014

Commercial production Estimated June 2015

• Koniambo construction completed in November 2013; production ramp-up now underway

• Power station commissioning issues are expected to be corrected by the end of H1 2015 – no power constraints to production in the interim

• Ramp-up of metallurgical production is progressing well; confidence that technology will deliver nominal capacity

Integrated site – metallurgical plant (construction complete)

152

Smelting (new smelting technology)

• The metallurgical plant has been operating for over 12 months

• both lines have operated at 90% of nominal throughput

• furnace power demonstrated at 80MW (100% of design) on both lines

• fluid bed reducing process performing well

• achieving overall metallurgical expectations

• Confidence in overall technology is high

153

Hammer Mill Flash Dryer Calciner Fluid Bed Reducer

DC Furnace

Sufficient power is now available to support production

• At full nominal smelting rates, the site will demand 215MW of net power, the equivalent of all power consumed on the island of New Caledonia. The site is designed to have a total installed capacity of 404MW (including auxiliary sources)

• 2 x STG (135MW x 2), 2 x CTG (52MW x 2), Enercal (30MW) and temporary diesel turbines (3 x 20MW)

• During commissioning of the steam fired power station in late 2013, significant cracking was identified in boiler tube welds in the heat exchange section of the waste heat boilers. The piping has required remanufacturing

• Boiler tube replacement and installation schedule is on track for both units to be operational at full capacity in Q2 2015

154

Production start up has relied heavily on 2 x

52 MW Rolls Royce Combustion Turbines

3 x 20 MW temporary diesel turbines were

added in May 2014

Further divestment opportunities

155

Araguaia

• Laterite nickel/cobalt project located in Brazil

• Measured and indicated resource of 105Mt @ 1.33% Ni and an additional 18Mt of

inferred resources @ 1.3% Ni

Sipilou • Laterite nickel/cobalt project located in Ivory Coast • Joint venture with SODEMI; current Glencore stake of 94%, diluting to 85% upon

issuance of mining license

Cosmos • Consists of two underground mines (Prospero and Cosmos) and a concentrator

in Western Australia • Cosmos is currently on care and maintenance

Nickel market transitioning to deficit

Offloading Sudbury nickel matte at Nikkelverk, Norway

Market remains in surplus with LME stocks increasing

157

LME Ni inventory and price

Nickel market balance (kt)

• LME nickel price rallied to $21,200/t in May, up 52%

from the start of the year. Prices subsequently

settled in an $18,000-$20,000/t range, then declined

rapidly from Sep, along with commodities in general.

Market recently recovered most Sep/Oct losses

• The increase in price was primarily driven by the

Indonesian ban on nickel ore exports and the

anticipation of reduced nickel output

• Yet, continuous increases in LME inventory, Chinese

metal exports, higher Philippine ore exports, macro-

economic downgrades and liquidity issues in China

have all impacted sentiment and nickel prices

Source: Glencore, LME. China Customs

12,000

14,000

16,000

18,000

20,000

22,000

24,000

26,000

28,000

30,000

80

130

180

230

280

330

380

430

Jan-10 Jan-11 Jan-12 Jan-13 Jan-14

Inventory (kt) Price (US$/t)

-50

0

50

100

150

200

250

300

350

400

450

2010 2011 2012 2013 2014F

Nickel market balance

Cumulative balance

2014 Chinese metal exports (kt)

0

2

4

6

8

10

12

14

16

18

20

Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Nickel pig iron output supported by high grade ore stocks

158

Quarterly nickel pig iron production (kt)

High and Mid grade Chinese nickel ore inventory (kt)

• Significant stockpiles of Indonesian high grade ore (>1.8% Ni) were built in China prior to the export ban (27Mt HG/MG ore)

• These stockpiles, blended with Philippine ore, have supported continued high levels of Chinese nickel pig iron (NPI) production in 2014 (c.480Kt Ni) albeit with production decreasing Q on Q

• Estimated at over 20Mt at the start of the year, stockpiles of high grade ore in China are currently below 10Mt and trending towards critical levels

• Philippine shipments will decrease in the coming months due to the monsoon season. Shipments will not pick back up materially until April when Surigao area exports resume

• HG stocks will be at critical levels by April 2015 and seasonality will become a major factor going forward

Source: Glencore.

0

40

80

120

160

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4F

2013 2014

0

10

20

30

Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14

Mid grade (MG) High grade (HG)

Philippine ore supplies determine Chinese NPI outlook

159

Philippine ore exports to China (Mt)

Chinese nickel pig iron production (kt)

• With the Indonesian ban on ore exports

sustained (also confirmed by recent

Constitutional Court ruling), Chinese

inventory of Indonesian high grade ore will

ultimately deplete and NPI production will

depend on ore exports from the Philippines

• 2014 Philippine exports to China are forecast

at c.52Mt wet ore and constitute LG >50%,

MG >30% with the balance HG. Lower

average grade ores increase NPI production

costs, all things being equal

• No game changers elsewhere: New

Caledonia may supply 1-2Mtpa additional ore

to market while Guatemala may supply up to

30kt Ni contained in higher grade ore to

European FeNi plants

• Based on our projection of volume and

composition of Philippine ore supply, China’s

NPI production is forecast to fall from 480kt

Ni in 2014 to 400kt Ni in 20151 and 350-

400kt Ni over the outlook period

Source: Glencore, Note: (1) Function of HG ore carry out.

0

25

50

2013 2014F 2015F

LG <0.8% Ni LG >0.8% Ni MG HG

0

100

200

300

400

500

600

2013 2014F 2015F 2016F 2017F 2018F 2019F

0

500

1000

1500

2000

2013 2014F 2015F 2016F 2017F 2018F 2019F

Chinese NPI New projects Existing producers

Supply outlook – limited growth amid ore ban

160

• Global nickel supply in 2014 is forecast to be

relatively unchanged on 2013 as decreased

output from existing producers and Chinese NPI

is offset by increased production from new

projects

• Longer term, Chinese NPI production is forecast

at 350-400kt vs. 510kt in 2013. However,

increased supply from new projects (all going

well) should offset projected losses and overall

supply growth is forecast at c.1% p.a. to 2019

• China’s NPI dependence on lower grade ore

from the Philippines will increase production

costs

• Ramp up performances highlight the need for a

cautious outlook, with the majority of new

projects delayed due to technical,

environmental, permitting and social challenges

• We assume limited growth in actual Indonesian

NPI output. While capacity will be built in a

higher price environment, the extent and pace of

commissioning is likely to be challenged for a

variety of reasons

• We forecast less than 100kt Ni in Indonesian

NPI by 2019

Source: Glencore

Forecast nickel supply (kt)

Forecast supply from new projects (kt)

Demand outlook – solid growth in key markets

161

• “While the days of double-digit growth in China

are over, the greater size of the economy

means lower growth still translates into strong

absolute demand… It’s slower not lower.” Julian Kettle, Wood Mackenzie

• Primary nickel demand in stainless steel is

projected to increase c.5% in 2014, reflecting

growth in China, North America, Japan and

India. Longer term, we forecast global nickel

demand in stainless to increase at a rate >4.5%

p.a., predominantly driven by China (Global

CAGR 2008-2013: 9.6% p.a.)

• Activity in non-stainless applications is also

robust with nickel usage projected to increase

>8% in 2014. Going forward, non-stainless

demand growth is forecast >4% p.a., with

strong contributions from China, US and India

• Overall, we project solid nickel demand growth

of c.4.5% p.a. between 2014 and 2019 (CAGR

2008-2013: 7.1% p.a.)

• Put simply, we conservatively expect demand

will increase by 75-100Kt Ni per year

Source: Glencore

Forecast nickel demand by sector (kt)

Forecast nickel demand by region (kt)

0

500

1,000

1,500

2,000

2,500

2013 2014F 2015F 2016F 2017F 2018F 2019F

Primary nickel in non-stainless

Primary nickel in stainless

0

500

1,000

1,500

2,000

2,500

2013 2014F 2015F 2016F 2017F 2018F 2019F

China

Non China

Expanding deficits to emerge

162

• Assuming the Indonesian ban on ore exports is sustained, market deficits will emerge

• Increased supply from new projects (all going well) supports global production growth of c.1% p.a. to 2019

• With nickel demand growth projected at a conservative c.4.5% p.a., the market is expected to transition to deficit, with substantial deficits forecast from 2018

• Long run nickel pricing will largely be determined by the cost of bringing on marginal (low grade) limonite ore processing capacity

• We do not see any new low cost technologies that will alter the outlook

Source: Glencore

Forecast nickel supply/demand (kt)

Forecast nickel market balance (kt)

1,600

1,800

2,000

2,200

2,400

2013 2014F 2015F 2016F 2017F 2018F 2019F

Supply

Demand

-300

-200

-100

0

100

200

2013 2014F 2015F 2016F 2017F 2018F 2019F

Q&A

Murrin Murrin metallurgical plant, Australia






09:45 - Break




11:40 - Break



Mangara, Chad

165








of strategy.















E&P portfolio overview

166

Asset Participation

Note: * Glencore operated

Equatorial

Guinea

Participating

Interest

Block I 23.75%

Block O 25.00%

Block X 37.50%

Block V * 80.00%

Block EG 05 * 60.00%

Cameroon Participating

Interest

Matanda * 90.00%

Bolongo * 100.00%

Tilapia 23.33%

Chad Participating

Interest

DOB/DOI * 100.00%

-Mangara Field* 85.00%

-Badila Field* 85.00%

DOH * 100.00%

Doseo/Borogop* 100.00%

Morocco /

Western Sahara

Participating

Interest

Boujdour

Offshore * 38.25%

Foum Ognit 18.75%

E&P portfolio location

• 3D seismic acquisition completed to

further refine development approach

• Diega development planning well

advanced

• Partnership in discussion with the EG

Govt regarding timing for a development

Equatorial Guinea Continued production from Aseng & Alen and future development potential in Diega

167

Aseng (Block I)

Note: * Alen field is located 95% in Block O and 5% in Block I

Alen (Block O) * Diega (Block I / O)

• Active production management and strong reservoir performance at the Aseng oil field

— Plant reliability remains world class at 99% uptime

— Field has outperformed original forecast for the year

— 2014 year end production range of 37-38 kbpd

• 2014 focus has been on further

optimising the Alen facility and

successfully sidetracking one of the

Alen producing wells

— 2014 year end production range of

27-29 kbpd

— Plateau production target of

c. 31-32 kbpd (expected in Q1 2015)

2015 Outlook & Guidance Aseng Alen

Gross Production (Ave) ~33,000 bbls/day 30,000 – 31,000

bbls/day

Combined full cycle unlevered IRR from both blocks in excess of 15% at

current curve pricing

• Drilled an appraisal well (NM-3x) on a

previous discovery (1980 Gulf oil)

• Pre-drill intention was to pursue a gas

reinjection scheme and extract liquids

in phase 1

• Well flowed very rich gas condensate

(greater than anticipated) • Well testing indicated a complex

reservoir system with need for further appraisal to identify true upside potential Considering options and will be looking

to farm out/down to players who could develop this large, but complicated, resource base

Expect to book an impairment in 2014

• Oak discovery made by Glencore in

2012 1st operated well drilled by the

Company

• Three appraisal wells drilled to

determine resource potential /

commercial development opportunity Peak flow rate of 1,500 bopd from Oak

South appraisal well

• Currently shooting 3D seismic over

potential development area and

performing preliminary development

engineering studies Considering potential partnerships for

development

168

• Non-operated - (Noble Energy - operator)

• Reduced interest during the year from 33% to 23% to Woodside

• One exploration well planned for 2015 - Cheetah prospect

Cameroon – appraisal programme completed

Matanda Bolongo Tilapia

• First Glencore rainy season well executed in the Doseo Basin

• Flowed at rates up to 2,880 bopd. Estimated 6,000 bopd unrestricted natural flow • Reserves in the process of being updated based on new well and seismic data

• Validated resource base

Chad – key milestones achieved since Sep 2013 update

169

Badila Field

Kibea Appraisal

Krim Discovery

Mangara Field

• Discovery well drilled in Q4 2013. EXA application submitted and expecting

Government approval shortly

• First oil planned for Q2/Q3 2015 with a phased development scheme: • Phase 1: Truck oil to Mangara (~ 7 km) and produce through Mangara CPF (separate Krim train)

• Phase 2: Construct separate Krim production facility to expand capacity

• Badila 40,000 bfpd CPF Facility completed and commissioned in November 2014

• Total water injectivity capacity at 23,000 – 30,000 bwpd by year end

• Current production at ~ 15,000 bopd

• Mangara 15,000 bopd CPF is now completed and ready to be commissioned

• First production expected in December 2014 / January 2015

Facility expansion achieved

First oil imminent

Fast track development planned

Successful appraisal well drilled

Total Chad West - Outlook & Guidance

2015

Gross Production (Ave) 30 – 37 kbopd

Near term development & production in Western Acreage

• Focussing on near term cash flow from these three fields

• In ~18 months since the initial Glencore farm-in, two fields will have

been brought online

• Third field to follow in Q2 2015

• At current pricing, economics are robust on any incremental

forward spend on these fields

• Underlying field IRR’s >20% on a full cycle basis

• Provides an indication of future value creation

potential from exploration play

170

Mangara Field

Krim Field

Outlook & Guidance

First oil date Dec 14 / Jan 15

Reserves (audited) 70 MM bbls

Outlook & Guidance

First oil date Q2/Q3 2015


Outlook & Guidance

First oil date Sep.13


Badila Field

Capturing value from the exploration opportunity & existing discoveries in the East Discovered resource represents only ~ 25% of total audited risked resource potential

• Leaves entire exploration play at ground floor entry

• ~800 MM bbls of audited risked prospective resource

• Existing discoveries (Kibea, Maku, Tega, Sako) with resource potential of >100 MM bbls

Modular approach to exploration

• Strategy to target lowest risk prospects with greatest impact to existing facilities and strategic investment

decisions (e.g. Pipeline)

• Responded to current pricing environment with a reduced exploration capex budget

» Capex for 2015 weighted ~75%/25% in favour of Chad West development vs. Chad East exploration/appraisal

• Low cost drilling relative to offshore and greater chance of success with exploration dollars being spread across

multiple targets

• 2D & 3D seismic campaigns underway to better define targets and uncover new prospects

Currently drilling first exploration wells since acquisition

• Beche B, Lore, Sourma

171

Summary of Prospective Resources (Pmean)

Block Gross Resources (mmbbl)

Unrisked Risked

DOB/DOI (PSC 2) 328 107

DOH (PSC 3) 309 65

Doseo/Borogop (PSC 1) 3,074 648

Total 3,711 820

Conclusion

Strong cash generation from two assets in production (EG & Chad) • Equatorial Guinea

– Aseng and Alen continue to perform well with no significant capex commitments until Diega development

• Chad

– Plan to accelerate production from the 3 Western fields/discoveries (Mangara, Badila, Krim) using existing

pipeline infrastructure (Totco / Cotco)

Highly attractive value proposition from the Central & Eastern Acreage in Chad • Highly prospective basin at ground floor entry

– ~800 MM bbls of audited risked prospective resource

• Modular approach with a strategy to target lowest risk prospects with closest proximity to existing facilities entry

– Capex for 2015 weighted ~75%/25% in favour of Chad West development vs. Chad East exploration/appraisal

• Low cost / well relative to offshore and multiple opportunities for success

Disciplined approach to capital and returns • Equatorial Guinea

– Solid full field life project returns even at current spot prices

– Large amount of headroom to breakeven price

• Cameroon

– Considering options on Matanda

– Bolongo Oak development delayed until post seismic results

• Chad

– Purchase price for Caracal equivalent to independent valuation of 2P reserves only. Leaves entire exploration

play at ground floor entry

– Economics are robust on any incremental forward spend on Chad Western developments/fields

172

Oil drill rig, Chad

Q&A

Harvester at Balaklava, Australia





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175








of strategy.















Agricultural products Chris Mahoney

Shiploading at Port Giles, Australia

Agricultural products summary

• A global grain and oilseed origination, processing, storage,

handling and marketing business

• 11,700 employees

• operating in 4 regions with marketing offices in 27 countries

– marketing c.67Mt/year,

• comprising c.300 facilities including silos, ports, mills, oilseed and biofuel

processing facilities etc

– processing c.10.4Mt/year

• Our business focus, supported by logistics and processing assets,

is being in the countries of origin, particularly those with large

production and exportable surpluses

• Viterra fully integrated with significant cost savings realised

177

Glencore’s logistics infrastructure (1/2)

Illychevsk

3Mt

220kt

Tilbury

500kt

19kt

Szczecin

1.25Mt

25kt

Muuga

4.0Mt

300kt

Dunaújváros

300kt

7kt

Taman

3.5Mt

84kt

Rostov

1.25Mt

60K

Bahia Blanca

3.0Mt

210kt

Cascadia

6Mt

280kt

Prince Rupert

6Mt

230kt

Thunderbay

2Mt

500kt

Montréal

3Mt

250kt

Port Lincoln

1.9Mt

395kt

Port Giles

800kt

296kt

Pt Adelaide OH

1.9Mt

65kt

Pt Adelaide IH

850kt

338kt

Wallaroo

750kt

765kt

100%

ownership Leased Viterra JV

Name of port

• normalized annual throughput

• storage capacity

Thevenard

600kt

347kt

Newcastle

1.5Mt

150kt

Timbúes

2.7Mt

450kt

Pacific

2Mt

180kt

Grain port facilities

Note: In total 21 port facilities with cumulative 5.2Mt storage capacity. Normalized annual throughput of circa 44Mt.

Source: Company data

178

Glencore’s logistics infrastructure (2/2)

Ukraine

26 facilities

1,26Mt

Bulgaria

2 facilities

64kt

Romania

10 facilities

337kt

Russia

11 facilities

710kt

Hungary

4 facilities

240kt

Kazakhstan

3 facilities

233kt

Poland

5 facilities

180kt

Argentina

8 facilities

372kt

Uruguay

2 facilities

100kt

Canada

63 facilities

1.9Mt

Australia

109 facilities

7.8Mt

Country

• number of storage facilities

• storage capacity

Viterra

Note: In total 243 storage facilities with cumulative 13.2Mt storage capacity.

Storage facilities


179

Farming and processing assets

Facillities Commodity Production capacity Ownership Country

Crushing

Moreno 3 Sun / Soya 1.29Mt 100% Argentina

Ponta Pora 1 Soya 329kt 100% Brazil

Fokto 1 Multi 508kt 100% Hungary

Usti 1 Sun / Rape 462kt/586kt/60kt 100% Czech

Kharkov 1 Sun 320kt 80-100% Ukraine

Lubmin 1 Rape 165kt 100% Germany

Bodaczew 1 Rape / Soya 600kt/660kt 100% Poland

Ste. Agathe 1 Canola 280kt 100% Canada

Timbúes 1 Soya 6Mt 50% Argentina

Fangchenggang 1 Rapeseed 680kt 49% China

Total crushing assets 12 plants 8.6Mt

Biofuels

Biopetrol 3 Multi 850kt 100% Germany / Netherlands

Advanced Organic Materials 1 Soya 50kt 50% Argentina

Renova 2 Soya 500kt 33.3% Argentina

Total biofuels assets 6 plants 1.1Mt

Rio Vermelho 1 Sugar 3Mt ~90% Brazil

Mills

Mills 6 Wheat 1.2Mt 50-100% Brazil

Mills 4 Rice 400kt 100% Argentina, Brazil and Uruguay

Total mills assets 10 1.6Mt

Farming Farming Multi 180k hct 50-100% Australia, Argentina, Kazakhstan,

Paraguay, Russia and Ukraine

180

Distinct but interdependent businesses

• Earnings are not reliant on prices or positioning

• average VaR year to date 2014 - $8.3M, maximum $16M

• Natural ‘hedge’ within the business:

• big crops are positive for handling and oilseed processing

• crop problems/dislocation can support marketing/trading

• Lower prices = lower working capital

• working capital cycle is 49 days

• Healthy ROCE in 2014 YTD

• Sustaining capex is low; 55% current of annual depreciation

181

Global

storage /

handling

(inc. Viterra)

Farming Softseed

processing /

biodiesel

Europe

Soyabean

processing /

biodiesel

Argentina

Milling

South

America

Trading/Marketing

Agricultural products – key strengths

• In top three grain /oilseed exporters

from Russia, EU, Canada and Australia

• In top three global marketers (seaborne

trade) of wheat, durum wheat, barley,

peas/pulses, canola and sunflower

seed/oil/meal

• First class, large scale assets in

Canada, Australia, Argentina

(Timbues), Russia (Taman) and

Ukraine (Illychevsk)

• Focused on retaining a strong/flexible

trading culture

• Low overhead per tonne vs. peers

182

Wheat in Bute, South Australia

Marketing and handling update

• Prices at post financial crisis lows

• record 2013/14 US crops, good EU and FSU

production and a re-building of PRC corn stocks

due to three years of good production

• however, some new crop production issues

developing (Russia)

• Record 2013 Canadian crop (76Mt) followed

by an average 2014 crop

• September harvest lower at 60Mt, but record

carry over stocks means total availability in

2014/15 will be similar to 2013/14

• quality is very variable and may provide blending

opportunities. Rail situation has improved

• 2014 Australian crop (November harvest) will

be average, down slightly on 2013

• government is advocating open access to ports

• Port capacity additions by competitors

occurring in Australia, Ukraine, USA and

Brazil

• so far no indication of new port building in

Canada, but some country elevator additions

183

Viterra Weyburn grain silo, Australia

Farming and processing update

• Oilseed crush margins in Europe, FSU and Argentina have been reasonable

• no significant additions to crush capacity in these regions with the exception of the Ukraine

• conflict in Ukraine has forced the closure of a competitor’s plant

• EU biodiesel margins have stabilised due to capacity rationalisation

• Wheat milling margins in Brazil remain good and historically consistent

• Farming results will suffer due to lower prices in 2015 – this was mitigated in 2014 due to hedging early in the year

184

Tailem Bend bunker stack, Australia

Population demographics underpin a positive outlook

• Global demand growth supports the

business with 10 year CAGR of: – Corn: 3.5 %

– Beans: 3.3 %

– Wheat: 1.8 %

• Growth in seaborne trade exceeds

demand growth: – Corn: 4 %

– Beans: 6 %

– Wheat: 2.9 %

• 20-25% more food to be moved in

five years time

• New handling infrastructure and

processing capacity will be required

• Existing facilities should earn

attractive returns based on

replacement values

185

Ship loading Port Adelaide, Australia

Q&A

Viterra Balgonie, Regina, Canada

Appendix

Oilseed processing, logistics and marketing are integrated

Represents earnings streams

Origination

elevators /

silos

Port

elevators /

silos

Marketing/

freight

Break bulk

distribution

Rice milling Oilseed crushing Wheat flour milling Biodiesel production

• Provides supply of commodity at

farm cost price. Long term flat

price long position

• Economies of scale to ensure

best practices, machinery and

logistics sharing, low cost

producer

• Ability to hedge single and multi

year in related futures markets

• First hand source of information

on local conditions

• Elevators and port facilities have

their own earnings stream

(storage and through put fees)

• Supportive of the procurement

business enabling purchases

directly from farmers

• Up country storage capacity

critical to the purchase of

grain/oilseeds at harvest

• Crucial to ensure timely delivery

to load ports particularly in an

environment of high capacity

utilization or export bans/quotas

• Logistics delays to the last 10%

of the cargo/program delay its

entirety, cannot rely on third

parties for 100%

• Processing margin provides an

earnings stream

• Supports raw material

procurement, commodity may

be diverted for export

• Products feed into marketing

book (oilseeds, rice)

• Production margin locking and

unlocking (oilseed crush,

biodiesel)

• Milling assets provide an outlet

for wheat

• Procurement margin and carry

trades

• Intra/origin commodity arbitrage

(wheat, corn, barley, softseed)

• Inter commodity arbitrage (feed

compound raw materials, oil

complex).

• Production economics arbitrage

(oilseed crush, biofuels)

• Time spreads

• Freight arbitrage (between

vessel types) and optionality

trades

• Some flat price positions taken

based on real physical market

insight

Procurement / marketing assets Processing assets

Farming Origination and port

elevators Processing assets Marketing

Farming Marketing/

freight

Marketing activities (no assets)

188

3.7 5.7

6.8 7.8

2010 2011 2012 2013 YTD Q3 2014

Crushing & Sugar Cane prod. Biodiesel Rice milling Wheat milling

Operating track record

189

Volumes – Farming (kt)

Volumes – Processing (Mt)

675 657 587

827

674

883

571

2008 2009 2010 2011 2012 2013 YTD Q32014Wheat Barley Corn

Rapeseeds Sunflower Seeds Soybeans

Rice Peas

30 29

31

37

46

68

50

2008 2009 2010 2011 2012 2013 YTD Q32014

Grains Oil/Oilseed Sugar Cotton

Volumes marketed (Mt)


Note: (1) Includes sugarcane processing volumes of 0.4Mt in 2008, 0.9Mt in 2009, 1.12Mt in 2010 and 0.9Mt in 2011

(1)

8.4

190 190






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11:40 - Break




Ivan Glasenberg

CEO



• Successfully deliver remaining key growth projects

• Koniambo, McArthur River, Katanga, Chad oil fields

• Ensure continued operating efficiency, targeting Q1 costs/margins

• Maintain strong investment grade credit rating

• Maintain disciplined deployment of capital to maximise free cash flow growth

• Glencore considers portfolio not only marginal NPV

• Confidence to:

• grow base dividend

• recycle excess capital to shareholders

• be opportunistic, but within our capital allocation framework

• Focus on continuing improvements in our health, safety, sustainability and governance performance

192

Q&A


DVM

glen investor-day-2014-print

Economy & Finance