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GLENCORE PLC - GLN - Glencore plc Investor Update

Release Date: 10/12/2015 08:00
Code(s): GLN     PDF:  
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GLN - Glencore plc Investor Update

GLENCORE PLC
(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
HKSE Share Code: 805HK
ISIN: JE00B4T3BW64

Baar, Switzerland
10 December, 2015

                               Glencore plc – investor update
       Prepared for current and even lower commodity prices through the rapid delivery
                                  of debt reduction measures

Today, Glencore is hosting an investor update call at 8.30am (GMT). The call will update on the
progress made against the debt reduction initiatives announced on 7 September.

Highlights include:

Positive free cash flow:

   -   More than $2 billion of free cash flow at spot prices; Glencore will remain comfortably
       free cash flow positive at materially lower price levels

   -   Estimated 2016 EBITDA of c.$7.7bn at current prices

Strong and increasing liquidity:

   -   Current liquidity increased to more than $14 billion and will be further enhanced as the
       debt reduction plan measures are delivered

Debt reduction/capital preservation measures increased to $13 billion (previous target of
$10.2 billion) with $8.7 billion already achieved/locked-in

New net debt target of $18-19 billion by the end of 2016 (previous target of low $20s
billion):

Industrial asset cash positioning significantly enhanced:

   -   Further reduction in capex: $5.7 billion for 2015E and $3.8 billion in 2016E, down from
       $6 billion and $5 billion respectively

   -   Production cuts have reduced overall supply and cash outlay; resources preserved for
       an improved future margin environment

Marketing remains a unique, low risk defensive earnings driver:

   -   Despite significantly lower commodity prices, Marketing adjusted EBIT for 2015E of
       c.$2.5 billion; underpinned by continued strength in oil and stronger contributions from
       Agriculture and Metals during the second half

   -   2016E marketing EBIT guidance of $2.4-2.7 billion reflects lower working capital levels
       and reduced copper, zinc, lead and coal volumes

Ivan Glasenberg, CEO, commented:
“In September, we announced a number of measures to reduce our debt. Today we show
significant delivery on those commitments, with $8.7 billion achieved to date, and are able to
announce an increase in our net debt reduction target measures by almost $3 billion to $13
billion. Glencore is well placed to continue to be cash generative in the current environment –
and at even lower prices. We retain a high degree of flexibility and will continue to review the
need to act further as required."

Details of the call and presentation material are available on our website:
http://www.glencore.com/investors/investor-call-2015

Please dial in 5-10 minutes prior to the start time using the number / conference ID below

Confirmation Code:                                  1348329

London, United Kingdom:                             +44(0)20 3427 1901
National free phone - United Kingdom:               0800 279 4992
Johannesburg, South Africa:                         +2711 019 7075
National free phone - South Africa:                 0800 984 126
Hong Kong, Hong Kong:                               +8523071 3093
National free phone - Hong Kong:                    800 905 740
New York, USA:                                      +1646 254 3362
National free phone - USA:                          1877 280 2342
Sydney, Australia:                                  +61(0)2 9253 5963
National free phone - Australia:                    1800 040 158
Zurich, Switzerland                                 +41(0)44 580 7216
National free phone - Switzerland:                  0800 345 602

A replay of the call will be available on 10 December 2015 until 8 January 2016.

Replay Passcode:                                    1348329

London, United Kingdom:                             +44(0)20 3427 0598
Johannesburg, South Africa:                         +2711 019 7025
Hong Kong, Hong Kong:                               +8523011 4669
Geneva, Switzerland:                                +41(0)22 592 7553
New York, USA:                                      +1347 366 9565
Sydney, Australia:                                  +61(0)2 8014 7928

For further information please contact:

Investors
Paul Smith           t: +41 41 709 24 87   m: +41 79 947 13 48   paul.smith@glencore.com
Martin Fewings       t: +41 41 709 28 80   m: +41 79 737 56 42   martin.fewings@glencore.com
Elisa Morniroli      t: +41 41 709 28 18   m: +41 79 833 05 08   elisa.morniroli@glencore.com
Media
Charles Watenphul    t: +41 41 709 24 62   m: +41 79 904 33 20   charles.watenphul@glencore.com
Pam Bell             t: +44 20 7412 3471   m: +44 77 3031 9806   pam.bell@glencore.co.uk
 
www.glencore.com
www.youtube.com/glencorevideos

Glencore is one of the world’s largest global diversified natural resource companies and a major producer
and marketer of more than 90 commodities. The Group's operations comprise of over 150 mining and
metallurgical sites, oil production assets and agricultural facilities.

With a strong footprint in both established and emerging regions for natural resources, Glencore's
industrial and marketing activities are supported by a global network of more than 90 offices located in
over 50 countries.

Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation,
oil and food processing. We also provide financing, logistics and other services to producers and
consumers of commodities. Glencore's companies employ around 181,000 people, including contractors.

Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the
International Council on Mining and Metals. We are an active participant in the Extractive Industries
Transparency Initiative.

SPONSOR
Absa Bank Limited (acting through its Corporate and Investment Banking Division)

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