201111030800 Glencore Presentation

8/12/2019 201111030800 Glencore Presentation

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London, 3rd November 2011


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Glencore investment ro osition

Uni ue market osition in inte rated tradin

High growth and return, diversification

Significant barriers to entry

Best in class equity value creation track record From $1.2 bn in 1996 to $45 bn equity currently

Best in class alignment between management and shareholder interests

Owners not renters of assets

Best in class volume growth in industrial assets

Portfolio on time / to budget

row r ves mar e ng opera ons

Robust balance sheet / cash generation

Glencore is the best in class way to gain exposure to structural growth in global commodity demand

GLENCOE I 2


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Glencore at a lance

Integrated commodity producer and marketer

Integrated commodity producer and marketer, active inevery step of the supply chain

One of the worlds largest physical marketers for thema or y o s core commo es

Diversified industrial asset portfolio - complementssourcing, distribution and marketing operations

Robust financial and operational track record through

Zinc / copper /lead

Alumina /

Metals and Minerals

Oil

Coal / coke

Energy Products

Grains

Oils / oilseeds

Agricultural Products

e cyc e

Experienced management team - proven track record ofprofitability, value creation and risk management

aluminium

Ferroalloys /nickel / cobalt /iron ore

152

184

Key financials Key statistics

($ bn) More than 57,500 employees (including over 2,700 in

marketing operations) spread across over 40 countries

ey nves men s n non-

listed companies:

50.7% Kazzinc

73.1% Mopani

6.8 6.23.9 3.3

6.2 5.3

7.76.6

106106ey nves men s n

listed companies:

34.4% Xstrata

74.8% Katan a

40.0% Mutanda

100% Prodeco

100% Murrin Murrin (4)

Reven ue Ad justed EBITDA Ad justed EBIT

2008 2009 2010 H1 2011 (annualised)

.

29% Optimum Coal

8.8% UC Rusal

54.2% Century Aluminum (3)

(1) (2) (1) (2)

GLENCOE I 3

E&P portfolio (various shareholdings)o es: xc u ng excep ona ems(2) Adjusted EBITDA and adjusted EBIT includes associates and dividend income(3) Including 9.8% two cash-settled total return swaps(4) As of recent successful Minara takeover


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Glencore overview

Unique Global Infrastructure

Xstrata

Xstrata Xstrata

Rusal

Century

CompaniesRecylex Biopetrol

Century

XstrataVarious RussneftCompanies

Kazzinc /Altyntau

Portovesme

Xstrata

Sherwin

Chemoil

Xstrata Pasar

Perkoa

Xstrata

Los Quenuales

Xstrata

Xstrata

Rusal

Rusal

Mutanda

E&P Initiatives

Rio Vermelho

Shanduka /

Cobar

Sinchi Wayra

Punitaqui

Zinc/Copper

Xstrata

Alumina/AluminiumCoalNickel Grain Oil

Main OfficesOfficesIndependent Offices

GLENCOE I 4

nc opper s ra a c e s ra a oa s ra a oys en ury


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Full inte ration throu h the value chain Position throughout the value chain allows Glencore to capture value at each stage

Producers typically more focused on sale of own products than third-party marketing while other marketing peers do

Glencores core competencies span the value chain

Marketing, Marketing,Processing /Upstream

era

ls

orage an re g orage an re g

Zinc /copper /lead

etalsan

dMin

Ferroalloys /

Alumina /aluminium

uc

tsOil

nickel /cobalt / iron ore

Energy

Pro

d

Coal / coke

n/a n/a

Agri.

Pro

duc

ts Agriculturalproducts

GLENCOE I 5Significant presence Lesser presence

Key:


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Si nificant barriers to entr

Insight into market flows and access to real-time information across the globe

Scale and globalreach

Large scale and global sourcing and distribution of commodities is working capital intensive

Ability to fund investments in production facilities and industrial activities

Access to financingand riskmana ement skills

Ability to secure sourcing arrangements through facilitation of producer and/or consumerfinancing

nsures a re a e supp y o commo es

Enhances credibility with producers and customers alike where reliability and performanceare sought after attributes

Long-termsupplier / customerrelationship

Significant intellectual capital, which is generally challenging and time-consuming to createin, or transfer to, a new organization is a key competitive advantage on the marketing side ofthe business

Human capital

Global eo ra hic and diversified commodit mix which is difficult and ex ensive toreproduce but important to long-term sustainable success

geographic and

commodity mix

Distinctive factor vis--vis majority of other commodity marketersVertical inte ration

Provides stable source of supply and unique insight into the critical industrial production partof the commodity value chain

GLENCOE I 6


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Best in class value creation track record

19902008

Establishment ofGlencore focusedon physicalmarketing ofcommodities

Transition into anintegrated producer withacquisition of US smelterand Peruvian mine

Acquisition of astake in Xstrata(then SudelektraAG)

IPO ofGlencore

First public bondissue of $950m

Merger of Katanga and Nikanorresulting in a 8.5% holding in thecombined entity

Purchase of initial 40% stake inVasilkovskoye Gold (via Kazzinc)

Acquisition ofmajority stake inKazzinc

2002

Substantial

1980s 1990s 2000s 2010s1970s

2007

Selected

1993 / 94

Management

1995

Glencore2009 20101981

Acquisition of a Dutch

2009

Government a rovesGlencorecoal assetscontributed toformingXstrata plc

Glencorealuminium &alumina assetscontributed tocreate UC

Rusal

buyout(MBO)

acquires firstbuilding blockof Prodeco

$2.3bnconvertiblebond

grain trading company,foundation of AgriculturalProducts division

start of West Africanhydrocarbon projectsdevelopment phase

After management buy-out..

$1.2 bn

to current 2011

$45 bn

Value creation+3650%

GLENCOE I 7

.+50% FTSE 100


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Track record of value creation achieved by world class management team

%

Last 10 years RoE range (1)

61%

58%

50% 51%

45%

36%34%

38%

21%19%

21%

15% 15%

18%15% 15%

11% 13%

4%6%5%

Averages

Note: (1) Net Income / average equity excl. minority interests. Data based on last 10 full reported financial years. Length of historical period for some peers is limited

GLENCOE I 8

by availability of publicly disclosed financials. Glencore pre-expectionals.


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Performance is less correlated to commodity prices than peers

Marketing has made a profit every year since completion of the management buyout

Resilient model throughout the cycle

Marketing income is less correlated to commodity prices than that of diversified miners, with key profitdrivers being

Margin per unit of commodity, rather than based on absolute value

Service-like fee income

Uniquely positioned for geographical, product and time arbitrages

Market volatility and forward curve / spread opportunities

Unparalleled geographic and product diversification

Scale and market share

Economies of scale in sourcing, transportation, storage, insurance, finance and risk management

Limited directional trading strategies, including the ability to profit in falling markets

GLENCOE I 9


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Best in class alignment management and shareholder interests

Glencore management has considerably more skin in the game compared to peers

16.82%18%

14%

16%

10%

12%

O/S

4%

6%

0.02% 0.02% 0.11% 0.01% 0.25%

0%

2%

on o n o s ra a ng o mer can reepor encore

Glencore total employee ownership currently 83%

GLENCOE I 10


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Control of hi h ualit industrial assets

Prodeco Kazzinc Katanga

Major fully integrated zinc, copper and goldproducer in Kazakhstan, 50.7% owned by Glencore

8 mines, 2 zinc smelters, 1 lead smelter, 1 coppersmelter commenced in 2011, precious metal plantand auxiliary units

Large-scale copper-cobalt project in theDemocratic Republic of Congo, 74.8% ownedby Glencore

Listed on the Toronto Stock Exchange

Open pit and underground mining, ore

Thermal coal project in Colombia, 100%Glencore ownership

Two open-pit mines (Calenturitas and LaJagua) and owned rolling stock and portfacilities (1)

100% of VasGold recovery of 450 - 500k ozp.a. expected

48% of Novoshirokinskoe - expanding from450k MT p.a. to 600k MT p.a. mine designcapacity within 2 - 3 years

, -winning plant

Production expected to increase to c. 308k MTof copper, 8k MT of cobalt and 22k MT ofcobalt contained in cobalt hydroxide by 2015

Reserves and Resources

p.a. in 2010 to 19.9m MT in 2013 and 20.7mMT by 2015

Saleable reserves of 337m MT, totalresources of 540m MT

rec ous me a s rom o er azz nc m nes

Reserves (proven and probable, contained metal):

3,122k MT Zn

471k MT Cu

855k MT Pb

eserves prove an pro a e97.0m MT ore (4.2 %TCu, 0.5 %TCo)

Resources (measured and indicated)287.4m MT ore (4.0 %TCu, 0.5 %TCo)

Resources (inferred)180.2m MT ore (2.3 %TCu, 0.3 %TCo)

11.8 m toz Au

77.3 m toz Ag

280,000,

350,000,

20

25

Production profile

Thermal Coal (m MT)

Production profile

Copper (k MT)

300

350

800

1'000

Production profile

Gold (k oz) Zinc (k MT)

Gold Zinc

70,000,

140,000,

210,000,

5

10

15

50

100

150

200

200

400

600

GLENCOE I 11

,0,

200820092010201120122013201420152008 2009 2010 2011 2012 2013 2014 201500

2008 2009 2010 2011 2012 2013 2014 2015

Notes: (1) Licence to operate the port renewed on an annual basis until Puerto Nuevo is completed.


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Control of hi h ualit industrial assets

Mutanda West African Oil Assets Mopani Two fields under development offshore Equatorial

Guinea

Aseng: first oil expected Q4 2011 at an estimatedrate of 50,000 barrels per day; Glencore stake23.8%

Alen: first oil expected Q4 2013 at an estimatedrate of 37,500 barrels per day; Glencore stake 25%

Both fields operated by US listed Noble Energy,

Houston Further discoveries in Block I and O as well as

substantial exploration potential

Glencore owns 73.1% of Mopani, with theremainder of the business owned by FirstQuantum Minerals Ltd. (16.9%) and ZambiaConsolidated Copper Mines InvestmentHoldin s Plc 10%

Glencore owns 50% of Samref Congo Sprlwhich in turn holds an 80% ownershipinterest in Mutanda Mining Sprl

Glencore is the operator

Integrated mining and processing operation inthe Copperbelt region of Zambia, producingcopper and cobalt metal. It can process oxideand sulphide copper-cobalt concentrates

produced by Katanga and Mutanda. Mo ani also roduces sul huric acid which is

cobalt producer; operations located in theprovince of Katanga in the DRC

Mutanda is being developed to produceapproximately 110,000 tonnes p.a. of

copper and approximately 23,000 tonnes ,

used in the leaching operations at Katangaand Mutanda.

Operations are located in the cities of Kitweand Mufulira.

. .as of 2012

Potential for further production increasethrough merger with Kansuki

100

120 280

Production profile

Copper (k MT)

Production profile

Copper (k MT)

20'000

25'000

Production profile

(bbls / d)

20

40

60

80

70

140

5'000

10'000

15'000

GLENCOE I 12

0

2008 2009 2010 2011 2012 2013 2014 2015

0

2008 2009 2010 2011 2012 2013 2014 2015

0

2008 2009 2010 2011 2012 2013 2014 2015


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Industrial roduction rowth

Cu equivalent

' '

1'800'000Additional potential growth

from Kansuki and

1'400'000

1'600'000

Approved

1'000'000

1'200'000expans onprojects

600'000

800'000

200'000

400'000

0

2008 2009 2010 2011E 2012E 2013E 2014E

GLENCOE I 13

Mopani E&P Prodeco Kazzinc Katanga Mutanda Kansuki Agricultural


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Ke Financial Hi hli hts

Revenue 92'120 70'007 32%

Adjusted EBITDA(1) 3'845 2'635 47%

Adjusted EBIT(2) 3'303 2'197 50%

Glencore income(3) 2'450 1'558 57%

Operating cash flow before working capital changes 2'472 1'809 37%

Funds from operations (FFO)(4) 2'145 1'372 56%

Net Debt 8'287 14,756(5) (44)%

FFO to Net Debt(6) 49.6% 22.6%(5) 119.0%

(1) Adjusted EBITDA is revenue less cost of goods sold, less selling and administrative expenses, plus share of income from associates and joint controlled entities, plus dividend income,plus depreciation and amortisation.

(2) Adjusted EBIT is Adjusted EBITDA less depreciation and amortisation.(3) Pre other significant items(4) FFO is Operating cash flow before working capital changes less net interest paid, less tax paid, plus dividends received from associates

GLENCOE I 14

(6) Last 12 months


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Robust Balance Sheet(1)

Investment rade credit ratin has stren thened further:

Moodys LT: Baa2 ST: P-2 Outlook: Stable

S&P LT: BBB ST: A-2 Outlook: Stable

Gross Debt $24.1bn $30.6bn

Strong credit metrics going into H2

$10.4bn of cash and committed undrawn unsecured

Net Funding $22.5bn $29.1bn

Net Debt $8.3bn $14.8bn

credit lines

Additional > $2bn available liquidity under committedGearing 22% 43%

nven ory an rece va es orrow ng ase ac es

$1.3bn working capital release in Q2 2011

FFO to Net Debt 50% 23%

Net Debt to Adjusted1.1x 2.4x

Average VaR (1 day 95%) in H1 2011 was $48m (H1

2010: $37m)

Adjusted EBITDA to

Net Interest8.3x 6.9x

Average variable cost of funds improved by ca. 50 bps

since IPO

GLENCOE I 15(1) All definitions as per Interim Report 2011


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Workin ca ital flows enhance resilience

In a scenario of declining commodity prices, the release in working capital compensates for drop inearnings

The cash inflows preserve liquidity and position Glencore to capitalise on investment opportunitiesarising for example through a market downturn

Q2 2008 Q1 2009:

20,000

. Rapid fall in commodity prices from the mid-2008 peaks Glencores operations released c.$8bn of CCE, more than

offsetting any impact of the fall in profitability.

230

16,000

ase

d)

loye

d(US$m

)

180

8,000

12,000

CCIIndex

(re

en

tcap

ita

lemp

1304,000

Curr

80-

Q103

Q203

Q303

Q403

Q104

Q204

Q304

Q404

Q105

Q205

Q305

Q405

Q106

Q206

Q306

Q406

Q107

Q207

Q307

Q407

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q111

Q211

Current capital employed CCI Index (rebased)

GLENCOE I 16Note: Current capital employed defined as current assets less accounts payable, income tax payable and other financial liabilities.


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Ke statistics

Glencore operates significant industrial and marketing activities across the various businesssegments

Marketing activities Industrial activities

Operational

Glencore

Main activitySourcing, distribution

and marketing

Controlled and non-controlled investments in

producing anddevelopment assets

A leading integratedproducer and marketer

of commodities

Geographicalpresence

Over 40 countries Over 30 countries

Employees Over 2,700 Over 54,800(1)

Over 40 countries

Over 57,500

Financial

H1 11 Revenues Total assets: $81.4 bn$92.1bn

H1 11 EBITDA $3.8bn

H1 11 EBIT $3.0bn$2.3bn

Glencore shareholders funds: $29.0 bn

$3.3bn Standard & Poors: BBB (stable)

(3)H1 Net income $2.5bn(2) Moodys: Baa2 (stable)

GLENCOE I 18

Notes: (1) Marketing employees includes managers, support staff and employees in global offices.(2) Excludes exceptional items


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Marketin illustration arbitrage opportunities

Glencore has the ability to implement and execute any combination of the following arbitrage opportunities

Geographical1 Timing3Product2

Gasoline

Ethanol

Corn Vegoil

BiodieselEnergydistributor

Gasoil

Triangulation of freightmovements and regionalsupply/demand dynamics allow

Diverse commodity range, supplybase and extensive storage,handling and processing capabilities

Glencore is able to benefit frominefficiencies in the shape of theforward price curves

for capitalisation and executionof value add and profitenhancing transactions

enable exploitation of pricedifferentials across various products

Glencore enters into generic and Differences in grade, e.g. blending Carry trades booked in contango

contracts with various industry

participants Extensive and global commodity

books provide opportunities to

requirements at a lower overall cost

Locking in processing margins totake advantage of price differentialsbetween unprocessed and

,comparatively lower financing and

storage costs than that implied bythe forward curve

Glencore can benefit from avert cargos an enter nto

swap agreements to optimisephysical delivery schedule

Optimisation of existing

contracts results in reduced

processe pro uct

Substituting products where an end-product can be produced from avariety of commodities (e.g. animal

feed)

ac war at on mar et y pr c ngsales contracts as early as possibleand deferring the quotation periods(QPs) of supply contracts

xamp es

GLENCOE I 19

shipping costs and higher profitmargins compared to standardtrades


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Marketin illustration geographical arbitrage

Vanilla transaction executed by various

industry participants

Vanilla transaction executed by various

industry participants

premium profit margins achieved by Glencore due to its extensive and

global alumina book with insight into freight movements

premium profit margins achieved by Glencore due to its extensive and

global alumina book with insight into freight movements

Glencore enters into anexclusive 10 year purchaseagreement from an Aluminarefinery in theMediterranean basin.

Glencore enters into acontract to supply aluminato a Black Sea customer(B)

The logical origin to supply

Approached by a largeproducer with commitmentsto deliver alumina into theMediterranean, Glencoreswaps its Mediterranean

Glencore has an existingalumina supply commitmentto Iceland (D), typicallysourced from Jamaica (E).

Jamaican alumina (E) isthen finally shipped to theBlack Sea customer (B)resulting in a higher margin

existing contracts existing contracts

alumina is from A. Net of

freight costs, the salesagreement is priced atpremium to the purchasecontract thereby locking ina modest margin.

Alumina (A) for Northern

European Alumina (C) inexchange for the freightdifferential

n g o e swap

agreement, Glencorerecognises the benefit ofsupplying the new NorthernEuropean Alumina (insteadof the Jamaican) to Icelanddue to reduced shi in

encore s a y o

optimise freight andrationalisation of existingcontracts allow it to lock ina higher profit margin on astandard trade

costs.

B C D B

AA

C

E

A

Extensive and global alumina book provide flexibility to enhance profit margins

Glencores reputation as a secure and reliable counterparty present additional opportunities to optimise existing contracts

Triangulation of global freight movements allow Glencore to capitalise and execute value add and profit enhancing trades

GLENCOE I 20


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Marketin illustration product arbitrage

Glencores diverse commodity range and processing ability enables it to exploit price differentials

across various products, for example

s ng erences n gra e, e.g. en ng eren gra es oge er o mee con rac requ remen s aa lower overall cost

Locking in processing margins to take advantage of price differentials between unprocessed andprocessed product

Substituting products where an end-product can be produced from a variety of commodities (e.g.animal feed)

Illustrative example - Agriculture

After 3 months, relative Glencore improve their

Scenario Catalyst Outcome1 32

Gasoline mean Glencore calculatesthat the margin wouldimprove with a blend of 75%rapeoil and 25% soyoil

rapeoil and buyingsoyoil

Ethanol BiodieselEnergy

distributor

Corn VegoilGasoil

Different vegoil blends (rapeoil, soyoil, palmoil) produceBiodiesel with different quality specifications and hencemarket values

GLENCOE I 21

ase on mon orwar pr ces encore ca cu a e anoptimal Biodiesel producers margin with a feedstock of100% rapeoil


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Marketin illustration time arbitrage

Glencore is able to benefit from inefficiencies in the shape of the forward price curves

In a contango market, Glencore can book carry trades, benefiting from its comparatively lowernanc ng an s orage cos s an a mp e y e orwar curve

Glencore can also benefit from a backwardation market by pricing sales contracts as early aspossible and deferring the quotation periods (QPs) of supply contracts

Time arbitrage is dependent on the existence of liquid forward and futures markets and competitive

access to storage and financing

Illustrative example - Oil in a contango market

Glencore purchases 3 month forward Glencore sells At maturity Glencore

Scenario1 Outcome4Glencores strategy3Catalyst2

$75 each

barrel

at $80, resulting in aprofit beforefinancing, storageand other

of oil

Profit per barrel is $5less say $3 ofCurrent value Forward price

$85 transaction costs of

$5

,and other

transaction costs

$75

$80

$75 / bbl $80 / bbl

Spot 3mforward

$70

GLENCOE I 22


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Marketin illustration freight & logistics

Glencores freight and logistics operations are key to supporting marketing strategies, understandingtrade flows and adding additional value, for example

y e ng a e o p ys ca y ranspor an s ore pro uc s o a e a van age o preva ng mar econditions

The scale of operations ensures low cost transportation, often allowing Glencore to win contracts byoffering a lower unit price CIF (Cost, Insurance, Freight) than competitors

Illustrative example - General

Scenario1 Outcome3Glencores strategy2

Market price of a commodityin location X is $100

Glencore is able to operateat lower unit costs for freight

due to scale, experience and

Glencore can offer a CIFprice of say $106-$110 and

still win the contract as reva ng mar et transport

cost to ship the commodityto location Y is $10, total CIFprice is $110

vert ca ntegrat on owest cost prov er

Market = $10 / unit Glencore = $6 / unit

GLENCOE I 23


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World class mana ement and Board

Highly experienced Board of Directors and management team

Simon MurrayIndependent Non Executive Chairman

Aged 71

Executive Chairman of GEMS

Board member of Richemont and

Independent Non Executive DirectorsExecutive Directors

Essar Energy

Ivan Glasenberg Peter Coates

Aged 65

40 years of experience in theresource industry

Anthony Hayward

Aged 54

Former CEO of BP

Board member of TNK-BP and

Leonhard Fischer

Aged 48

CEO of RHJ International andformer CEO of Wintherthur

Aged 54

BoD Member since 2002

CEO of Glencore since 2002

Santos and AmalgamatedHoldings

par ner o nves ors,founder of Vallares

em er o e oar s o u usBaer Gruppe, AXA Konzern and

Arecon

years w encore

CFOSteven Kalmin

INEDWilliam Macaulay

INEDLi Ning

GLENCOE I 24

ge Chairman and CEO of First

Reserve

Chairman of Dresser-Rand

Executive Director of Henderson

Land Development Company

Director of Hong Kong (Ferry)Holdings

ge CFO of Glencore since 2005

12 years with Glencore

201111030800 Glencore Presentation

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