#125 AUGUST 2022 EIII ΙΙΙΞ SOUTH 32 South32 Limited (Incorporated in Australia under the Corporations Act 2001 (Cth)) (ACN 093 732 597) ASX/LSE/JSE Share Code: S32 ADR: SOUHY ISIN: AU000000S320 south32.net 2022 FULL YEAR FINANCIAL RESULTS PRESENTATION South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY) (South32) will hold a conference call at 8.30am Australian Western Standard Time to discuss the attached 2022 full year financial results presentation materials, the details of which are as follows: Conference ID: Please pre-register for this call at link. A presentation is attached. Following the conference call a recording will be available on the South32 website (https://www.south32.net/investors-media/investor-centre/financial-operational-results). Separately a video presentation by South32 Chief Executive Officer, Graham Kerr, will be made available on the South32 website (https://www.south32.net/investors-media/investor-centre/financial-operational-results). About us South32 is a globally diversified mining and metals company. Our purpose is to make a difference by developing natural resources, improving people's lives now and for generations to come. We are trusted by our owners and partners to realise the potential of their resources. We produce commodities including bauxite, alumina, aluminium, copper, silver, lead, zinc, nickel, metallurgical coal and manganese from our operations in Australia, Southern Africa and South America. With a focus on growing our base metals exposure, we also have two development options in North America and several partnerships with junior explorers around the world. Investor Relations Ben Baker T +61 8 9324 9363 M +61 403 763 086 E [email protected] Media Relations Jamie Macdonald T +61 8 9324 9000 M +61 408 925 140 E [email protected] Miles Godfrey T +61 8 9324 9000 M E +61 415 325 906 [email protected] Further information on South32 can be found at www.south32.net. Approved for release by Graham Kerr, Chief Executive Officer JSE Sponsor: The Standard Bank of South Africa Limited 25 August 2022 Registered Office Level 35 108 St Georges Terrace Perth WA 6000 Australia ABN 84 093 732 597 Registered in Australia#22022 FULL YEAR FINANCIAL RESULTS 25 August 2022 »{m\ ΙΙΙΞ ΙΙΙΞ SOUTH32#3IMPORTANT NOTICES III SOUTH32 This presentation should be read in conjunction with the "Financial Results and Outlook - year ended 30 June 2022" announcement released on 25 August 2022, which is available on South32's website (www.south32.net). Figures in italics indicate that an adjustment has been made since the figures were previously reported. FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements, including statements about trends in commodity prices and currency exchange rates; demand for commodities; production forecasts; plans, strategies and objectives of management; capital costs and scheduling; operating costs; anticipated productive lives of projects, mines and facilities; and provisions and contingent liabilities. These forward-looking statements reflect expectations at the date of this presentation, however they are not guarantees or predictions of future performance or statements of fact. They involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materially from those expressed in the statements contained in this presentation. Readers are cautioned not to put undue reliance on forward-looking statements. South32 makes no representation, assurance or guarantee as to the accuracy or likelihood or fulfilment of any forward-looking statement or any outcomes expressed or implied in any forward-looking statement. Except as required by applicable laws or regulations, the South32 Group does not undertake to publicly update or review any forward-looking statements, whether as a result of new information or future events. Past performance cannot be relied on as a guide to future performance. South32 cautions against reliance on any forward-looking statements or guidance, particularly in light of the current economic climate and the significant volatility, uncertainty and disruption arising in connection with COVID-19. The denotation "e" refers to an estimate or forecast year. NON-IFRS FINANCIAL INFORMATION This presentation includes certain non-IFRS financial measures, including Underlying earnings, Underlying EBIT and Underlying EBITDA, Underlying revenue, Underlying net finance costs, Underlying depreciation and amortisation, Underlying operating costs, Underlying income tax expense, Underlying royalty related tax expense, Basic Underlying earnings per share, Underlying effective tax rate, Underlying EBIT margin, Underlying EBITDA margin, Underlying return on capital, Free cash flow, net debt, net operating assets and ROIC. These measures are used internally by management to assess the performance of our business, make decisions on the allocation of our resources and assess operational management. Non-IFRS measures have not been subject to audit or review and should not be considered as an indication of or alternative to an IFRS measure of profitability, financial performance or liquidity. NO OFFER OF SECURITIES Nothing in this presentation should be read or understood as an offer or recommendation to buy or sell South32 securities, or be treated or relied upon as a recommendation or advice by South32. RELIANCE ON THIRD PARTY INFORMATION Any information contained in this presentation that has been derived from publicly available sources (or views based on such information) has not been independently verified. The South32 Group does not make any representation or warranty about the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation or forecast by South32. NO FINANCIAL OR INVESTMENT ADVICE SOUTH AFRICA South32 does not provide any financial or investment 'advice' as that term is defined in the South African Financial Advisory and Intermediary Services Act, 37 of 2002, and we strongly recommend that you seek professional advice. MINERAL RESOURCES AND ORE RESERVES Information in this presentation that relates to Ore/Coal Reserve or Mineral/Coal Resource estimates for all operations and projects was declared as part of South32's annual Resource and Reserve declaration in the FY21 Annual Report (www.south32.net) issued on 3 September 2021 and prepared by Competent Persons in accordance with the requirements of the JORC Code. South32 confirms that it is not aware of any new information or data that materially affects the information included in the original announcements. All material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. South32 confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement. Illawarra Metallurgical Coal Production Target cautionary statement: The Coal Resources and Coal Reserves estimates underpinning the Production Target have been prepared by Competent Persons and reported in accordance with the JORC Code. The Coal Resources and Coal Reserves estimates are available to view in South32's FY21 Annual Report (www.south32.net) published on 3 September 2021. The stated Production Target is based on South32's current expectations of future results or events and should not be solely relied upon by investors when making investment decisions. Further evaluation work and appropriate studies are required to establish sufficient confidence that this target will be met. Resource life is estimated using Mineral Resources (extracted from South32's FY21 Annual Report published on 3 September 2021 and available to view on www.south32.net) and Exploration Target (details of which are available in the "Hermosa Project Update" announcement published on 17 January 2022), converted to a run-of-mine basis using conversion factors, divided by the nominated run-of-mine production rate on a 100% basis. Whilst South32 believes it has a reasonable basis to reference this resource life and incorporate it within its Production Targets, it should be noted that resource life calculations are indicative only and do not necessarily reflect future uncertainties such as economic conditions, technical or permitting issues. Resource life is based on our current expectations of future results and should not be solely relied upon by investors when making investment decisions. Clark Deposit scoping study cautionary statement: The scoping study referred to in this presentation is based on the original announcement "Hermosa Project Update" released on 17 January 2022 and is available to view on www.south32.net. South32 confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. Taylor Production Targets cautionary statement: The information in this presentation that refers to Production Target and forecast financial information is based on Measured (20%), Indicated (62%), Inferred (14%) Mineral Resources and Exploration Target (4%) for the Taylor Deposit. The Mineral Resources underpinning the Production Target have been prepared by a Competent Person in accordance with the JORC Code. All material assumptions on which the Production Target and forecast financial information is based is provided in the "Hermosa Project Update" announcement released on 17 January 2022. There is low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the Production Target will be realised. The potential quantity and grade of the Exploration Target is conceptual in nature. In respect of Exploration Target used in the Production Target, there has been insufficient exploration to determine a Mineral Resource and there is no certainty that further exploration work will result in the determination of Mineral Resources or that the Production Target itself will be realised. The stated Production Target is based on South32's current expectations of future results or events and should not be solely relied upon by investors when making investment decisions. Further evaluation work and appropriate studies are required to establish sufficient confidence that this target will be met. South32 confirms that inclusion of 18% of tonnage (14% Inferred Mineral Resources and 4% Exploration target) is not the determining factor of the project viability and the project forecasts a positive financial performance when using 82% tonnage (20% Measured and 62% Indicated Mineral Resources). South32 is satisfied, therefore, that the use of Inferred Mineral Resources and Exploration Target in the Production Target and forecast financial information reporting is reasonable. Peake Exploration Target: The information is this presentation that relates to Exploration Target for Peake is extracted from "Hermosa Project Update" released on 17 January 2022 and is available to view on www.south32.net. The information was prepared by a Competent Person in accordance with the requirements of the JORC Code. South32 confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. South32 confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement. Flux Exploration Target: The information is this presentation that relates to Exploration Target for Flux is extracted from "South32 Strategy and Business Update" released on 18 May 2021 and is available to view on www.south32.net. The information was prepared by a Competent Person in accordance with the requirements of the JORC Code. South32 confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. South32 confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement. SLIDE 2#4IMPORTANT NOTICES III SOUTH32 EARNINGS RECONCILIATION The Group's statutory profit after tax increased by US$2,864M from a loss of US$195M to a record US$2,669M in FY22. Consistent with our accounting policies, various items are excluded from the Group's statutory profit/(loss) to derive Underlying earnings. The total adjustments to derive Underlying EBIT (US$243M) shown in the table below include the recognition of indirect tax assets following the restart of the Brazil Aluminium smelter (US$77M pre-tax) and a net impairment loss of non-financial assets (US$145M pre-tax) primarily related to our Eagle Downs Metallurgical Coal development option (US$183M pre-tax) partially offset by an impairment reversal for Brazil Aluminium (US$42M pre-tax). Profit/(loss) to Underlying EBITDA reconciliation1,2 Profit/(loss) before tax and net finance costs Adjustments to derive Underlying EBIT: Significant items Sierra Gorda joint venture adjustments Manganese joint venture adjustments (Gains)/losses on the consolidation or disposal of interests in operations Net impairment loss of financial assets Net impairment loss of non-financial assets FY22 FY213 3,724 (94) ཕྱིཊྛཱ, 。ཁྱཻ ཡྻུཾ, སྒྱེ (77) (55) 44 216 210 (9) Exchange rate (gains)/losses on the restatement of monetary items (50) 26 145 764 (Gains)/losses on non-trading derivative instruments, contingent consideration and other investments measured at fair value through profit and loss Major corporate restructures (52) (37) 23 Total adjustments to derive Underlying EBIT 243 1,133 Underlying EBIT 3,967 1,039 788 817 4,755 1,856 Underlying depreciation and amortisation Underlying EBITDA Profit/(loss) to Underlying earnings reconciliation1,2 Profit/(loss) after tax Total adjustments to derive Underlying EBIT Total adjustments to derive Underlying net finance costs Total adjustments to derive Underlying income tax expense Underlying earnings FY22 FY213 2,669 (195) 243 1,133 (124) 34 (186) (483) 2,602 489 SLIDE 3#5FY22 OVERVIEW Our favourable commodity mix and recent portfolio improvements, supported record earnings and shareholder returns in FY22 • Record earnings, free cash flow from operations" and ROIC • • • • Record shareholder returns of US$1.3B (a), equal to ~10% of our market capitalisation (b) Balance sheet returned to a net cash position following substantial investments, transforming our portfolio Increased our critical metals exposure, adding copper and growing our low-carbon aluminium capacity by >100%5 Expected to deliver 14% copper equivalent production6 growth in FY23 • Advanced our growth pipeline, delivering study milestones for our development options and increasing our investment in exploration to discover our next generation of mines SIDE Notes: a. b. In respect of the June 2022 financial year. Includes fully franked dividends (interim ordinary US$405M, final ordinary US$648M and final special US$139M) and on-market share buy-back of US$128M. Based on South32's market capitalisation as at 19 August 2022. 4,628 million shares outstanding, a closing share price of A$4.19 and an AUD: USD exchange rate of 0.69. IIIE SOUTH32#6FINANCIAL SCORECARD Net profit after tax US$2.9B to US$2.7B Underlying earnings US$2.1B to US$2.6B 3.0 Ordinary H1 FY22 Total dividends 1272% to 8.7 25.7 US cps Ordinary H2 Special H2 FY22 Shareholder returns (a) US$1.3B Underlying EPS 1444% to 56.0 US cps Underlying EBITDA 1156% to US$4.8B Group operating margin +20.7% to 47.1% Capital management program ↑ US$156M Net cash at 30 June 2022 US$538M Free cash flow 210% to US$2.6B Notes: a. 14.0 Dividends US$1.2B On-market share buy-back US$128M with US$250M remaining Return on invested capital ↑23.9% to 30.1% In respect of FY22, which includes fully franked dividends (interim ordinary US$405M, final ordinary US$648M and final special US$139M) and on-market share buy-back of US$128M. SLIDE 5 III SOUTH32#7WORKING SAFELY TRIF 8,9 8,9 TRILF The most important commitment we make at South32 is that everyone goes home safe and well 5.9 6.0 5.3 4.2 4.3 FY20 FY21 FY22 2.2 1.8 1.3 1.5 FY20 1.1 FY21 South32 (including South Africa Energy Coal and TEMCO) South32 (adjusted) FY22 SOUTH32 • We tragically lost one of our colleagues, Mr Desmin Mienies, a contractor who was fatally injured while undertaking electrical work at our Wessels Mine at South Africa Manganese in November 2021 • We have commenced the implementation of our three-year Safety Improvement Program, launched our revised internal safety standard and a new contractor management standard TRIF decreased by 12%, however we did not achieve our 20% reduction target ICMM International Council on Mining & Metals SLIDE 6#8OUR FY22 SUSTAINABILITY PERFORMANCE HIGHLIGHTS Protecting and respecting our people Lazz Delivering value to society Notes: a. • • . Commenced our Safety Improvement Program to achieve a step-change in our safety performance Finalised our Inclusion and Diversity standard and implemented additional controls to mitigate sexual harassment risk across our business Managing our environmental impact . Set new water efficiency targets for operations in baseline water stress III SOUTH32 • Continued implementation of the Global Industry Standard on Tailings Management across our business • Committed to a pilot program on the Taskforce on Nature-related Financial Disclosures with the ICMM Increased our community investment spend by ~40% to US$31M Completed cultural heritage exposure reviews for operating regions outside of Australia 15 Addressing climate change Progressed decarbonisation and energy transition options in support of our medium-term target(a) Completed an update of our assessments of the physical risks of climate change across our operated assets • Developed our internal social performance standard, strengthening the requirements for social performance across our business Established a modern slavery working group to support delivery of our commitments Our progress is being recognised in our third-party ESG ratings: SUSTAINALYTICS a Morningstar company ESG INDUSTRY TOP RATED Rating: SUSTAINALYTICS Medium risk (July 2022)10 ESG Risk Rating placement: 8 out of 169 companies in the Diversified Metals industry MSCI Rating: ↑ A (May 2022)11 Operating ethically and responsibly • 2022 There are five interconnected pillars that underpin our approach to sustainability Medium-term target to reduce operational greenhouse gas emissions by 50% from FY21 levels by 2035. SLIDE 7#9OUR FY22 INCLUSION AND DIVERSITY PROGRESS We are improving our performance across the majority of our objectives, and have updated our medium term targets for all of our gender metrics to >40% by 2030(a) Total employees who are women 19.0% 18.4% 19.2% FY20 FY21 FY22 Black People 12 in our South African management team 61.9% 55.0% 52.4% Women on our Board Women on our Lead Team 44.0% 44.4% 37.5% 37.5% 37.5% 37.5% FY20 FY21 FY22 Women in Senior leadership¹³ FY20 FY21 FY22 Women in Operational leadership¹4 36.0% 32.1% 29.6% 20.4% 18.0% 18.3% FY20 FY21 FY22 FY20 FY21 FY22 Notes: a. With Women in Senior Leadership >40% by 2028. VISION 40:40 FY20 FY21 FY22 CGe CEOs for Gender Equity CHAMPIONS OF CHANGE COALITION SLIDE 8 SOUTH32#10OUR FY22 PROGRESS IN ADDRESSING CLIMATE CHANGE Notes: a. の Decarbonising our operations Reshaping . our portfolio Partnering with others We progressed decarbonisation activities designed to address our largest exposures • • Completed a PFS for the mud-washing project at Worsley Alumina targeting a 295kt (or ~7%) (a) reduction in operational GHG emissions, while continuing to evaluate options to convert the refinery's energy source Relined our first pots utilising the AP3XLE energy efficiency technology at Hillside Aluminium, and progressed study work for options to secure low-carbon electricity Awarded a A$15M grant from the New South Wales government for a commercial pilot Ventilation Air Methane abatement facility at Illawarra Metallurgical Coal, in collaboration with the CSIRO We took significant steps to increase our exposure to metals critical for a low-carbon future Completed the acquisition of a 45% interest in the Sierra Gorda copper mine • Expanded our low-carbon aluminium capacity by >100% Completed the zinc-lead-silver Taylor Deposit PFS using low-carbon design principles and advanced options for our battery-grade manganese Clark Deposit Continued our investment in exploration with more than 25 partnerships and projects targeting base metals We established new partnerships for collective action on climate change Progressed initiatives targeting supply chain emissions, signing a sustainability-linked contract with Klaveness for caustic soda shipping to Worsley Alumina Received provisional certification under the Aluminium Stewardship Initiative at Mozal Aluminium Refinanced our US$1.4B revolving credit facility as a sustainability-linked loan Our Climate Change Action Plan will be subject to a non-binding advisory vote at our 2022 Annual General Meeting Compared to Worsley Alumina's operational GHG emissions of ~3.75Mt in FY21. SLIDE 9 IIIE SOUTH32#11FINANCIAL RESULTS 26 ΞΙΙΙ ΙΙΙΞ SOUTH32#12FY22 PERFORMANCE ANALYSIS Our operations delivered to revised plans, enabling the Group to capitalise on significant price tailwinds and deliver a record 47% operating margin FY22 Underlying EBITDA contribution by commodity(a)(b)(c) Aluminium Alumina Copper Zinc-lead-silver 20% 31% 15% Aluminium & alumina operating margin .34% 31% 28% 25% 23% Copper operating margin(c) Zinc-lead-silver operating margin 55% 55% 53% 33% Nickel 9% Manganese ore 12% 8% Metallurgical coal 11% 3%--- FY20 FY21 Includes 4 months Aluminium FY22 Alumina FY20 FY21 FY22 FY20 FY21 FY22 of Sierra Gorda Group operating margin7,(d) 37% 33% 26% 22% Nickel 47% FY18 FY19 FY20 FY21 FY22 operating margin Manganese ore operating margin¹ Metallurgical coal operating margin(b) 57% 53% 47% 46% 40% 36% 26% 12% 64% FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 Notes: a. b. Presented on a proportional consolidation basis and excludes manganese alloys, Hermosa, and Group and unallocated costs. Metallurgical coal comprises Illawarra Metallurgical Coal, including energy coal by-product volumes. C. Copper comprises Sierra Gorda, including molybdenum, gold and silver by-product volumes. d. Group operating margin reflects our material EAI on a proportional consolidation basis and an ownership interest of 54.6% for South Africa Manganese ore. SLIDE 11 SOUTH32#13EARNINGS ANALYSIS (US$M) 1,039 Our record Underlying EBIT was supported by our favourable commodity mix and further portfolio improvements 3,666 728 Improvement in profitability from portfolio changes 160 75 16 (40) South Africa Energy Coal divestment Sierra Gorda acquisition Other 15 Brazil Aluminium smelter restart costs I I 56 56 167 31 114 211 35 55 155 1,210 3,967 Uncontrollable (+US$2,827M) I ! Net finance costs and ! income tax expense 17 i J 2,602 FY22 Underlying earnings SLIDE 12 SOUTH32#14FY21 cost base 5,627 392 FY21 third party product cost 19 COST ANALYSIS (US$M) We realised the benefit of exiting lower margin businesses and limited the increase in our controllable costs to less than 2% of the Group's total cost base J I Increase in costs due to inflation i FY21 adjusted cost base 5,235 99 56 Foreign exchange impact on costs Market traded consumables and price-linked costs 20 Uncontrollable (+US$839M) Inflation 728 40 167 127 iCost base reduction from portfolio changes I 109 I 29 40 I I I (61) (912) Smelter power costs indexation Other inflationary impacts I I South Africa Energy Coal divestment TEMCO divestment Other 18 Brazil Aluminium smelter restart costs Sierra Gorda costs since acquisition I 114 795 Controllable costs Portfolio changes Other21 8 FY22 adjusted cost base 5,401 FY22 third party product cost 19 SLIDE 13 FY22 cost base22 570 5,971 SOUTH32#15MARKET TRADED CONSUMABLES AND PRICE-LINKED COSTS Inflation has been most acute in our smelter raw material inputs, freight and caustic soda, while higher commodity prices translated into increased royalty payments EIII SOUTH32 YoY increase of US$728M in market traded consumables and price-linked costs 20 (US$M) Increase in raw materials T 166 I 103 36 27 Petroleum coke Pitch & Coal ATF I 152 148 132 70 70 60 00 Raw materials Freight Royalties Caustic soda Power and diesel Other23 FY22 total expenditure23 5% 15% 15% 39% US$2.4B 14% 12% SLIDE 14#16FY21 net cash 406 Free cash flow from continuing operations excluding capital expenditure (US$M) CASH FLOW ANALYSIS and been invested to transform our portfolio Record free cash flow from operations has delivered record shareholder returns Net distributions from manganese and Sierra Gorda EAls 321 559 2,799 1,420 Capital expenditure24 Acquisition of a 45% interest in Sierra Gorda Acquisition of a 16.6% interest in Mozal Aluminium 114 Dividends paid 099 On-market share buy-back 128 SLIDE 15 Shareholder returns (US$788M) Other25 107 FY22 net cash 538 SOUTH32#17OUR BALANCE SHEET Our balance sheet returned to a net cash position following transformational portfolio activity, before our commitment to return a further US$1B to shareholders June 2021 net cash/(debt) (US$M) June 2022 net cash/(debt) (US$M) 2,500 2,000 1,500 1,000 500 2,500 2,000 1,500 1,000 US$406M 500 US$538M | I US$1,037M remaining to be returned I (500) (500) Cash Debt FY21 net cash Cash Debt FY22 net cash i Final Ordinary dividend Special dividend I We continue to prioritise a strong balance sheet and investment grade credit rating through the cycle Remaining capital management program I Our liquidity position remains strong, with US$2.4B cash on hand 26 and an undrawn US$1.4B revolving credit facility 27 We issued US$700M in 10 year Senior Unsecured Notes (Notes) in April 2022 with a 4.35% coupon to support the acquisition of Sierra Gorda 28 Total debt of US$1.8B is long-dated and includes: - ~US$700M Notes due in 2032 US$556M Worsley Alumina cogeneration lease expiring in 203929 US$335M in cash managed on behalf of our manganese JV Our balance sheet remains modestly geared with a leverage ratio 0.226 SOUTH32 (US$499M) Adjusted net debt SLIDE 16#18CAPITAL MANAGEMENT FRAMEWORK Our capital management framework is unchanged Capital management framework Maximise cash flow ROIC Competition for excess capital - Investment in our business - Acquisitions - Greenfield exploration - Share buy-backs - Special dividends Distribute a minimum 40% of Underlying earnings as ordinary dividends Maintain safe and reliable operations and an investment grade credit rating through the cycle A strong balance sheet is at the core of our strategy Our framework is designed to reward shareholders as our financial performance improves Net cash/(debt) prior to dividend commitments (US$M) FY22 1,200 30.1% Cash flow priorities 800 400 H1 FY19 FY19 H2 H1 FY20 H2 H1 H2 H1 H2 FY20 FY21 FY21 FY22 FY22 Shareholder returns (a) (US$M) 2,000 46% 52% 49% 81% 66% 46% 1,800 1,600 1,400 1,200 1,000 800 600 400 200 FY17 FY18 FY19 FY20 FY21 FY22 Remaining capital management program On-market share buy-back Special dividends Notes: a. Ordinary dividends O Total dividend pay-out ratio Shareholder returns refers to dividends declared in respect of each period and on-market share buy-back amounts paid during each period. Remaining capital management program refers to the balance remaining on our on-market share buy-back program as at the time of release of this presentation. SLIDE 17 III SOUTH32#19OUR SHAREHOLDER RETURNS Our flexible capital management program has been active since FY17 US$0.5B returned in special dividends (a) and US$1.5B via our on-market share buy-back, reducing shares on issue by 13% Cumulative EPS 30 (LHS) and South32 share price (RHS) (US cents per share from 31 December 2016, LHS; A$/share, RHS) 140 Program expanded by a further US$156M to US$2.3B, leaving US$250M to be returned 120 100 80 60 40 20 H2 FY17 H1 FY18 EPS H2 FY18 H1 FY19 H2 FY19 EPS (without share buy-back) H1 FY20 H2 FY20 H1 FY21 South32 share price H2 FY21 H1 FY22 Average buy-back price H2 FY22 Returns to shareholders (US$M) 211 334 III SOUTH32 5.50 5.00 4.50 4.00 Average buy-back price. 3.50 A$2.93 per share 3.00 A 9% discount to the volume weighted average price on our 2.50 trading days 2.00 1.50 93 161 167 114 192 77 112 234 60 68 Share buy-back 378 317 344 140 108 48 67 257 405 787 Dividends (b) Notes: a. Including fully franked special dividend of US$139M resolved to be paid in respect of H2 FY22. b. Ordinary and special dividends resolved to be paid in respect of the period. SLIDE 18#20SOUTH32 Cerro Matoso MADE IN COLOMBIA NIE SOUTH32 Cerro Matoso MADE IN COLOMBIA E OUTH32 o Matoso \ COLOMBIA III INE SOUTH32 ELLI SOUTH32 Cerro Matoso MADE IN COLOMBIA IIIE SOUTH32 Cerro Matoso MADE IN COLOMBIA UTH32 o Matoso IN COLOMBIA OUTLOOK MADE O BIA#21OUR GROWING PRODUCTION PROFILE We expect our recent investments and the execution of improvement projects to lift Group copper equivalent production by 14% from our FY22 baseline Illustrative Group production profile Copper equivalent (CuEq) production (kt) Growth profile by source (%) FY22 +14% 30% 30% 21% 19% FY23e Our 45% interest in Sierra Gorda Restart of Brazil Aluminium with 100% renewable power Additional 16.6% shareholding in Mozal Aluminium Improvement projects and capacity creep at our existing operations SLIDE 20 SOUTH32#22PRODUCTION GUIDANCE Aluminium (kt) Nickel (kt) 1,190 1,269 982 992 20% growth in FY23 with higher share of Mozal Aluminium and restart of Brazil Aluminium smelter 41.7 43.5 43.5 34.1 FY21 FY22 FY23e FY24e FY21 FY22 FY23e FY24e Alumina (kt) Manganese ore (Mwmt) 5,361 5,395 5,400 5.6 5.4 5.4 SA Mn guidance for FY24 not provided 5,288 Both refineries expected to sustain production above nameplate capacity in FY23 3.4 FY21 FY22 FY23e FY24e Copper equivalent³¹ (kt) 30.6 89.0 Sierra Gorda guidance for FY24 not provided FY21 FY22 FY23e FY24e Zinc equivalent³² (kt) 239.0 236.1 233.4 224.2 FY21 FY22 FY23e FY24e Sierra Gorda expected to achieve higher throughput, benefitting from the de-bottlenecking project Cannington expected to benefit from the optimised mine configuration accelerating access to higher-grade material FY21 FY22 FY23e FY24e Cerro Matoso's plant availability expected to return to normalised levels, while the OSMOC project mitigates natural grade decline III SOUTH32 Australia Manganese expected to increase primary production while the PC02 circuit operates above nameplate capacity South Africa Manganese (SA Mn) will continue to optimise volumes and its use of higher cost trucking Metallurgical and energy coal (Mt) 6.2 5.7 1.5 0.8 6.5 LLLI FY21 FY22 4.6 0.9 0.7 FY23e FY24e Production expected to recover in FY23 with fewer longwall moves and a recovery from wet weather, subject to maintaining labour productivity as we negotiate Enterprise Agreements at Appin Expected to decline to 5.3Mt in FY24 as Dendrobium moves into a new mining area Metallurgical coal Energy coal SLIDE 21#23OPERATING UNIT COSTS PERFORMANCE AND GUIDANCE III SOUTH32 Worsley Alumina (US$/t)33 +8% 296 274 256 H1 FY22 H2 FY22 FY23e Hillside Aluminium (US$/t) 1,935 2,318 H1 FY22 H2 FY22 Guidance not provided FY23e FY23 guidance +8% from H2 FY22 Significantly higher caustic soda prices and an increase in planned consumption, combined with increased freight costs, partially offset by a weaker Australian dollar Guidance not provided Will continue to be influenced by the price of raw material inputs, the South African rand and inflation-linked energy costs Brazil Alumina (non-operated) (US$/t) 262 312 H1 FY22 H2 FY22 Mozal Aluminium (US$/t) 2,008 2,429 H1 FY22 H2 FY22 Guidance not provided FY23e Guidance not provided Lower volumes and costs to recover from the unloader outage, added to higher raw material and energy costs in FY22 FY23 costs will continue to be influenced by energy prices and raw material inputs, including caustic soda Guidance not provided Guidance not provided Will continue to be influenced by the price of raw materials inputs, the South African rand and inflation-linked energy costs FY23e SLIDE 22#24OPERATING UNIT COSTS PERFORMANCE AND GUIDANCE Sierra Gorda (non-operated) (US$/t)33,34 14.6 --+1% 14.8 FY23 guidance +1% from H2 FY22 H1 FY22 Cannington (US$/t)33,34 128 H2 FY22 139 H2 FY22 H1 FY22 Cerro Matoso (US$/lb)33 4.56 4.11 -7% +9% FY23e Efficiencies from the plant de-bottlenecking project, more than offset by higher diesel prices and labour costs Australia Manganese ore (US$/dmtu)33,35 1.94 1.79 H1 FY22 H2 FY22 +7% 2.08 FY23e South Africa Manganese ore (US$/dmtu) 33,35 -6% I FY23 guidance -7% from H2 FY22 2.83 129 Higher throughput from the optimised mine plan and weaker Australian dollar, more than offset higher energy prices 2.63 2.66 FY23e 4.97 H1 FY22 H2 FY22 FY23e FY23 guidance +9% from H2 FY22 Higher price-linked royalties and energy prices, and impact of prior year's one-off royalty provision adjustment, more than offset the benefit of additional volumes H1 FY22 H2 FY22 Illawarra Metallurgical Coal (US$/t)33 123 FY23e -10% I 129 116 H1 FY22 H2 FY22 FY23e III SOUTH32 FY23 guidance +7% from H2 FY22 Higher labour and contractor costs and increased activity associated with a higher strip ratio, combined with higher diesel prices, partially offset by a weaker Australian dollar FY23 guidance -6% from H2 FY22 Drawing down previously built low-cost inventory from the barrier pillar project and a weaker South African rand FY23 guidance -10% from H2 FY22 Higher volumes and a weaker Australian dollar to more than offset labour and energy cost inflation SLIDE 23#25CAPITAL EXPENDITURE GUIDANCE (INCLUDING EAI) SOUTH32 We are increasing our investment to support productivity, portfolio changes and future growth in attractive end markets FY23e Safe and reliable(a) (US$M) US$785M FY23e Improvement and life extension(a) (US$M) US$170M FY23e Growth (US$M) Aluminium value chain Base metals Manganese ore Metallurgical coal Includes a full year of Sierra Gorda and increased investment at Illawarra Metallurgical Coal to support the transition to a single longwall at Appin from FY25 Comprises: Productivity and improvement (US$90M) Life extension (US$50M) Decarbonisation (US$30M) Notes: a. Inclusive of our manganese and Sierra Gorda EAls. US$290M Investment at Hermosa for critical path dewatering, Taylor feasibility and Clark study costs SLIDE 24#26CAPITAL PROJECTS PIPELINE We have a pipeline of projects phased from pre-feasibility through to execution Operation Safe and reliable capital Illawarra Metallurgical Coal Project Transition to Appin single longwall Improvement and life extension capital Worsley Alumina Worsley Alumina Worsley Alumina Brazil Alumina Brazil Alumina Hillside Aluminium Sierra Gorda Sierra Gorda Cerro Matoso Australia Manganese South Africa Manganese Growth capital Hermosa New mining areas Mud-washing Coal to gas conversion De-bottlenecking Phase 2 MRN life extension AP3XLE De-bottlenecking Fourth line expansion OSMOC project Eastern Leases Rail infrastructure Taylor Deposit Hermosa Ambler Metals Notes: a. PFS FS Clark Deposit Arctic Deposit Execution FY23 Productivity and improvement Life extension FY24 Decarbonisation Project milestones are conditional on regulatory and internal investment approvals, and are subject to change. FS means feasibility study. PFS means pre-feasibility study. FY25 Commentary III SOUTH32 Appin single longwall to deliver efficiencies from FY25 Subject to regulatory approval FS expected in FY23 FS for first boiler conversion expected in FY23 ~4% expected increase in plant capacity from H1 FY26 PFS expected in late CY22 Implemented with pot relining over FY23-FY28 ~6% expected increase in plant capacity from Q2 FY23 FS expected in mid CY23 In execution, may trigger mine contract extension 36 FS expected in Q2 FY23 FS expected in FY23 FS expected in mid CY23 PFS selection study expected in late CY22 Arctic PFS underway by the Joint Venture SLIDE 25#27ILLAWARRA METALLURGICAL COAL Dendrobium proposed mine plan 1.5 Area 3B Previously mined Development consent Coal Reserves Area 3C Longwall 23 Longwall 21 Longwall 22 Longwall 21A 4.5 km Area 3A Longwall 19 Longwell 19A Appin proposed mine plan Measured Coal Resources Indicated Coal Resources Inferred Coal Resources Previously mined LW719 LW718 LW717 LW716 LW715 LW714 LW713 LW712 LWT Single longwall configuration Hybrid longwall configuration LW710A LW 905 LW710B Illawarra Metallurgical Coal complex FY23 saleable production expected to be 7.4Mt with Operating unit costs of US$116/t Between FY24 and FY28 (a) (b) we expect the current configuration to deliver on average: • • Annual saleable production of ~5.5Mt Operating unit costs of between US$105/t to US$120/t, with further improvements targeted to bring sustainably to the bottom of the range III SOUTH32 FY23 Safe and reliable capital expenditure is expected to be US$263M, with our annual spend to remain elevated until Appin's transition to a single longwall in FY25 Dendrobium mine Elected to not proceed with the DND project, with expected returns from the US$700M up-front capital estimate insufficient to support an investment, relative to alternatives for the complex Focussed on continuing to optimise Dendrobium within approved domains (Areas 3A, 3B and 3C) Saleable production is expected to step down from 3.6Mt in FY23 to an average of ~1.5Mtpa between FY24 and FY28, reflecting expectations for increased gas drainage in Area 3C Appin mine Transition to a single longwall at Appin from FY25 is expected to bring further operating and capital efficiencies • Includes planned work to invest ~US$260M (c) to install additional ventilation capacity that will enable mining to continue in Area 7 until at least 2039 (b)(d) Based on average between FY24 and FY28, on a real basis with a AUD:USD exchange rate of 0.69, with outcomes to vary depending on the timing of longwall moves. Production Target for Illawarra Metallurgical Coal (FY24 to FY28) is based on 23% Proved and 52% Probable Coal Reserves and 20% Measured and 5% Indicated Coal Resources from Wongawilli, and 11% Proved and 89% Probable Coal Reserves from Bulli. Refer to important notices (slide 2) for additional disclosure. Subject to Board approval, based on an AUD:USD exchange rate of 0.69. Expenditure has been incorporated in Safe and reliable capital guidance for FY23 (-US$60M) and FY24 (~US$80M). Production Target and forecast financial information for the Appin mine at Illawarra Metallurgical Coal is based on Proved (11%) and Probable (89%) Coal Reserves from Bulli. Notes: a. b. ة ن فـ d. 1.5 3 4.5 km SLIDE 26#28OUR COMMODITY DEMAND IN A LOW-CARBON WORLD Demand across our commodities will be well supported by a rapid transition to a low-carbon future 2050e average commodity demand in 1.5°C scenario versus base case37 100 150 (Index 2020 = 100) 200 Aluminium Alumina 250 300 1.5°C scenario anchored on rising electric vehicle (EV) penetration (from 4% to 100%) and proliferation of renewables generation (6x to 20TW) from 2020 to 2050e Aluminium benefits from higher intensity of use in EVs, substitution of plastics in packaging and increasing use in renewables Aluminium intensity in EVs is ~40% higher than internal combustion engine (ICE) vehicles (from 111kg/car in 2020 to 256kg/car in 2050e) due to light-weighting Copper is a key metal used in EVs, charging infrastructure and renewable energy Copper intensity in EVs is ~3x that of ICE vehicles (23kg/car) Copper intensity for offshore wind generation is ~12x that of coal and gas installations Zinc protects metals against corrosion Notes: a. b. Zinc Copper - Wind and solar energy could increase >10x by 2050e in 1.5°C scenario, equivalent to adding 3x the capacity of the USA each year SOUTH32 Additional demand in 1.5°C scenario Reduction in demand in 1.5°C scenario - Zinc intensity in offshore wind and solar installations is ~300x and 200x higher, respectively, than in autos (10kg/car) Zinc demand could double to 24Mt by 2040, akin to adding three Taylor sized projects (a) each year in an environment when supply is declining Lead impacted by reduced demand for lead batteries in motor cars as ICE fleet is phased out by 2050e, partly offset by higher demand for use in energy storage systems Manganese benefits from higher use in infrastructure to improve steel quality and also has the potential to displace cobalt in lithium-ion batteries with ~7x higher intensity in manganese-rich (b) cathode chemistries than nickel-based chemistries Base case Lead Manganese Based on Taylor Deposit pre-feasibility study with 130kt per annum steady state payable zinc production. Refer to important notices (slide 2) for additional disclosure. Manganese-rich chemistry is represented by NMX 370 with seven parts of manganese, compared to nickel-rich chemistry represented by NMC 811 with one part in manganese. SLIDE 27#29ALUMINIUM MARKET III SOUTH32 Rising energy and raw material costs have lifted and steepened the cost curve Aluminium cost curve (CY21 and CY22)(a) (US$/t) 4,000 Low inventories and higher energy prices expected to provide near-term price support Aluminium price and stocks (US$/t, LHS; kt, RHS) 4,500 Rising demand underpinned by energy transition and cap to Chinese capacity is expected to provide further tailwinds, particularly in a 1.5°C scenario LME Stock SHFE Stock 14,000 3,500 4,000 LME Price SHFE Price(a) 12,000 3,000 3,500 2,500 Spot price US$2,376/t(b) with ~30% of the supply loss-making 3,000 10,000 2,500 2,000 CY21 cost curve 1,500 1,000 500 China Europe ■Middle East & Africa Americas Other Source: CRU Notes: a. b. Illustrates business costs which represent cash costs net of premiums (normalised to LME index price). Spot price as of 19 August 2022. 2,000 1,500 1,000 500 2002 2006 2010 2014 2018 2022 Source: LME, SHFE (Shanghai Futures Exchange) Notes: a. SHFE prices refer to SHFE excluding VAT of 13% (from 1 April 2019), 16% (from May 2018) and 17% prior to that. SLIDE 28 8,000 6,000 4,000 2,000#30ALUMINA MARKET EIII SOUTH32 Significant increases to caustic soda and energy prices are challenging margins at less efficient refineries with ~35% of global supply currently loss-making Alumina cost curve (CY21 and CY22)(a) Increased Chinese demand expected to more than offset capacity additions and ex-China smelter curtailments in the near term Alumina prices (US$/t) 600 500 (US$/t) 600 500 400 400 Spot price US$330/t (b) with ~35% of the supply loss-making 300 CY21 cost curve 300 200 100 China - domestic bauxite Middle East & Africa China imported bauxite Americas ■Europe Other Source: CRU Notes: a. b. Illustrates business costs which represent cash costs net of premiums (normalised to FOB Australia price). Spot price as of 19 August 2022. Concurrent supply disruptions inside 200 and outside of China Russia-Ukraine conflict Return of Chinese buying interest expected 100 Platts China Shanxi Ex-works (CFR Equivalent) Platts CFR China Aug-21 Nov-21 Source: Platts, South32 Analysis Feb-22 May-22 Aug-22 SLIDE 29#31COPPER MARKET III SOUTH32 While new supply is coming online and near-term surpluses are expected, low visible inventories are providing price support Copper prices and warehouse inventories (US$/t, LHS; kt, RHS) 12,000 Long term demand outlook supported by renewable energy additions and rising electric vehicle penetration 2040e supply and demand gap equivalent to ~1Mt of new supply each year Regional mine production capability versus primary demand (Mt Cu) 35 1200 New mine supply required to close gap, despite higher assumed scrap recycling 10,000 8,000 6,000 4,000 2,000 30 1000 CAGR 2021-2025e: 4.5% 25 800 20 600 15 400 10 200 5 CAGR 2026e-2040e: (4.0%) 2018 2019 2020 2021 2022 2021 ILME (RHS) SHFE (RHS) ICOMEX (RHS) ―LME Copper Price (LHS) 2027e Total production capability 2033e 2039e Primary demand Source: Datastream, LME, SHFE, COMEX, South32 analysis Source: Wood Mac LTO Q2 2022, South32 analysis SLIDE 30#32ZINC MARKET III SOUTH32 Rapid renewables deployment and the requirement to protect wind and solar infrastructure could see zinc demand double over the next two decades Zinc primary demand (kt Zn) 25,000 We expect China's supply to have peaked with environmental regulations and falling grades limiting future potential mines Primary zinc demand in a 1.5°C scenario increasing 2x to 24Mt 6x increase in renewable energy capacity to 2050, with wind and solar increasing by 10x and 14x respectively 2030e supply and demand gap equivalent to more than three new Hermosa Taylor(a) sized projects required each year Chinese mine supply growth and zinc price (kt Zn, LHS; US$/t, RHS) 600 Limited Chinese mine supply growth despite sustainably higher zinc prices post-2016 China accounted for 32% of global primary supply in 2021, the single biggest contributor by country 6,000 20,000 15,000 10,000 5,000 +100% 2020 2040e ■Construction and infrastructure ■Consumer goods and machinery ■Transportation Additional demand in a 1.5°C scenario Source: South32 analysis Notes: a. 400 200 -200 4,000 2,000 -400 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 YTD Aug-22 annualised Chinese mine supply growth (LHS) ―LME Zinc Price (RHS) Source: South32 analysis, LME Based on Taylor Deposit pre-feasibility study with 130kt per annum steady state payable zinc production. Refer to important notices (slide 2) for additional disclosure. SLIDE 31#33MANGANESE MARKET III SOUTH32 Current preference for high-grade ores and a widening premium being driven by higher Chinese energy prices Rising electric vehicle penetration and adoption of manganese-rich chemistries expected to add to overall demand Long term price expected to be set by marginal South African supply transitioning underground over time China manganese ore imports by grade (40% Mn normalised) (Mt, LHS; share by grade %, RHS) 10 8 10 6 2 Scarcity of high-grade supply supporting the premium for this ore Manganese ore price and China port stocks by grade (US$/dmtu; Mt) 9 50% 7 40% 30% 8 ∞ 65+ 3 4 20% 2 10% 1 Q1 CY20 CY20 CY20 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Feb-21 May-21 Aug-21 Nov-21 Feb-22 May-22 Aug-22 CY20 CY21 CY21 CY21 CY21 CY22 CY22 High-grade port stocks High-grade Mid-grade Low-grade Share of high-grade (RHS) Source: GTA customs 44% Mn ore, CIF Tianjin Source: Fastmarkets, Ferroalloy.net Mid-grade port stocks 37% Mn ore, CIF Tianjin Low-grade port stocks SLIDE 32#34METALLURGICAL COAL MARKET III SOUTH32 Recent price decline driven by weak pig iron output (particularly in Europe) combined with easing supply constraints Metallurgical coal price and arbitrage (US$/t) Improvement in Indian spot demand and Chinese steel sector recovery will be key for near-term price support Ability of supply to meet rising Asian demand in the long term is constrained by challenges with infrastructure, financing and approvals Australia and North American metallurgical coal exports(a) (Mt) 700 600 500 400 300 200 100 European energy and raw material prices dampened demand and India imposed steel export duty Australia ■North America 300 China and ex-China pig iron output declined China imposed ban on Australian coal imports Aug-18 Aug-19 Aug-20 Prem Low Vol HCC FOB Australia Source: Platts, World Steel Association, South32 Analysis Notes: 250 200 150 100 Russia- Ukraine conflict 50 North American supply remained inelastic despite higher prices Aug-21 Aug-22 (b) 2018 2019 2020 2021 2022 Prem Low Vol HCC CFR China Source: IHS Markit (S&P Global) Commodities at Sea, South32 analysis a. b. Metallurgical coal trade flow includes HCC, semi-soft coking coal and PCI. YTD July 2022 annualised. SLIDE 33#35STRATEGY AND PORTFOLIO SOUTH32#36OUR STRATEGY கு OPTIMISE our business by working safely, minimising our impact, consistently delivering stable and predictable performance and continually improving our competitiveness. 0 UNLOCK the full value of our business through our people, innovation, projects and technology. IDENTIFY and pursue opportunities to sustainably reshape our business for the future, and create enduring social, environmental and economic value. Our simple strategy is underpinned by a disciplined approach to capital management SLIDE 35 III SOUTH32#37OUR PORTFOLIO We have an attractive commodity mix and a growth pipeline in metals critical to a low-carbon future IIIE SOUTH32 We expect 14% volume growth in FY23 Our next phase of growth is expected to come from our world class base metals development options in North America Ambler Metals JV Cerro Matoso MRN Bauxite Brazil Alumina Worsley Alumina Sierra Gorda Brazil Aluminium Hermosa project Aluminium value chain Copper Nickel Australia Manganese Cannington Mozal Aluminium Illawarra Metallurgical Coal South Africa Manganese Hillside Aluminium Advancing greenfield exploration partnerships and prospects in: Zinc-lead-silver United States Manganese ore Metallurgical coal Canada Argentina Peru Australia Ireland We are investing to discover our next generation of mines with over 25 exploration programs Project pipeline Brownfield options in study phase Worsley Alumina decarbonisation and life extension MRN bauxite mine life extension Hillside low-carbon electricity Sierra Gorda fourth line expansion Sierra Gorda brownfield oxide project Australia Manganese Eastern & Southern Areas South Africa Manganese expansion & logistics Greenfield growth options in study phase Hermosa Taylor and Clark Deposits Ambler Metals Arctic Deposit SLIDE 36#38DELIVERING ON OUR STRATEGY • Optimise our business • 0 Unlock the full value of our business Identify and pursue opportunities to create value Continued our strong operating performance in FY22: • Group copper equivalent production 6 99% of revised guidance • Worsley Alumina continued to operate above nameplate capacity, achieving record production Hillside and Mozal Aluminium continued to test their maximum technical capacity, despite higher load-shedding • Cannington transitioned to 100% truck haulage, while beating previously increased production guidance Established innovative logistics solutions across multiple operations to respond to ongoing freight markets challenges Achieved strong price realisations in our manganese business, as we optimised our sales mix in South Africa and delivered GEMCO's low cost PC02 material into favourable markets Continued to optimise the Illawarra Metallurgical Coal complex, reaching the decision to not proceed with the DND project Unlocked further opportunities: . Progressed Group decarbonisation studies to deliver our emissions reduction targets • Submitted an Environmental Review Document to develop new mining areas at Worsley Alumina . Sanctioned the De-bottlenecking Phase Two project at Brazil Alumina • Continued installing AP3XLE energy efficiency technology at Mozal Aluminium and commenced its rollout at Hillside Aluminium SOUTH32 • • Developed the higher-grade Q&P satellite deposit and achieved mechanical completion of the OSMOC improvement project at Cerro Matoso, which may satisfy our option to extend the mining contract by 15 years 36 Progressed the Eastern Leases feasibility study and our Southern Areas exploration program at Australia Manganese Completed the sale of four non-core base metals royalties to Anglo Pacific Group Plc for a consideration of up to US$200M38 Significant progress reshaping our portfolio with metals critical for a low-carbon future: • Added copper exposure with the acquisition of a 45% interest in Sierra Gorda . • • • Increased our low-carbon aluminium 39 production capacity by >100%, acquiring an additional share of Mozal Aluminium and participating in the restart of Brazil Aluminium Acquired an additional interest in the MRN bauxite mine, further aligning bauxite supply requirements within our Brazilian aluminium value chain 40 Completed a pre-feasibility study for the zinc-lead-silver Taylor Deposit, and advanced study work on the battery-grade manganese Clark Deposit, at our Hermosa project Continued our investment in more than 25 exploration partnerships and projects targeting base metals Subsequent to the end of the year, acquired a 9.9% interest in Aldebaran Resources Inc, owner of the Altar copper project in Argentina SLIDE 37#39| OUR FUTURE GROWTH THROUGH DEVELOPMENT & DISCOVERY IIIE SOUTH32 We are increasing our exploration commitment to discover our next generation of base metals mines in targeted regions ALASKA Exploration projects, partnerships or options Copper Nickel Polymetallic Zinc Ambler Metals Jupiter Roosevelt project ● Maguire EMX Royalty Corp (multiple projects) Hermosa I NORTHERN AUSTRALIA I Adventus Mining Corporation (multiple projects) Encounter Resources (Jessica & Carrara)- Iffley I I Harry's Lake AusQuest⚫ (multiple projects) - AusQuest (Morrisey) I I ARGENTINA | AusQuest (Balladonia) I I I I I Minsud Resources (Chita Valley) I Sable Resources (Don Julio) I Aldebaran Resources investment I 1 I AusQuest (Jubilee Lake) Watchie Bore AusQuest (Hamilton) Exploration spend (US$M) FY22 FY23e Greenfield exploration 26 44 Capitalised exploration (excl. EAI) 33 55 incl. Hermosa 19 28 incl. Ambler Metals 11 17 SLIDE 38 I#40HERMOSA PROJECT Hermosa land package Potential to be a globally significant producer of metals critical to a low-carbon future Patented Unpatented Prospects Deposits Flux Prospect Taylor Deposit N Peake Prospect High Corridor Priority -------- 0 1 2 3 4 5 Km Clark Deposit Area acquired in FY22 ☐ Notes: a. Refer to important notices (slide 2) for additional disclosure. SOUTH32 Taylor Deposit Zinc-lead-silver development option Clark Deposit Battery-grade manganese product potential Exploration A highly prospective land package . • PFS demonstrated potential for a sustainable, low cost operation with 20+ year initial resource life (a) in the first quartile of the industry's cost curve Estimated US$1.7B capital to build a conventional 4.3Mtpa plant and dual shaft access mine with associated infrastructure Final investment decision expected in mid CY23 Scoping study(a) has confirmed the potential to produce battery-grade manganese into rapidly-growing markets Manganese expected to benefit from the decision by the United States Government to invoke the Defense Production Act, supporting the production of critical minerals We are reviewing options to potentially accelerate our development studies for Clark Multi-year geophysics programs have defined a highly prospective corridor within the broader land package High-grade copper-lead-zinc-silver mineralisation intersected at the Peake prospect (a), south of the Taylor Deposit Planning to drill the Flux prospect(a) in early CY23, located down-dip of an historic mining area SLIDE 39#41HERMOSA PROJECT Study work and critical path infrastructure development progressing to plan WTP2 and dewatering well construction Link-Belt Link-Belt 80160 III SOUTH32 Development studies • Taylor feasibility study on-track for completion mid CY23 Clark PFS selection study on-track for completion end CY22 Water • State permits received to complete dewatering program Dewatering is a critical path item to first production which will enable access to both the Taylor and Clark orebodies 6 of the 9 required dewatering wells, ahead of shaft sinking, are expected to be completed in FY23 Construction of the second water treatment plant (WTP2) to support orebody dewatering is underway and expected to be commissioned in Q4 FY23 Tailings storage • We have established the first of two state-of-the-art dry stack tailings storage facilities Power Discussions ongoing to secure 100% renewable energy from local providers SLIDE 40#42HERMOSA PROJECT - TAYLOR CAPITAL EXPENDITURE III SOUTH32 Our FY23 investment in orebody dewatering, studies and early site works was included in our Taylor PFS capital estimate PFS pre-production capital expenditure (a) (US$M) Indirect costs of US$470M Dewatering of ~US$225M Surface facilities of ~US$440M Mining of US$565M ~US$1.7B total of which of which of which FY23e Growth capital expenditure (US$M) FY23e US$55M Work across the broader Hermosa project including Clark study costs US$30M is included in FY23e Taylor FS costs US$110M is included in FY23e WTP2, dewatering wells, piping systems and dewatering power infrastructure US$95M is included in FY23e Engineering and initial construction ahead of shaft sinking Work to support power infrastructure and road construction Direct costs Mining Surface facilities Dewatering Other project costs (b) Indirect costs Indirect costs include EPCM, owner's costs and contingency Notes: a. b. Refer to market release "Hermosa project update" dated 17 January 2022. Capital estimate reflects assumptions for key inputs including steel, cement and labour as at H1 FY22. Additional costs incurred during study phase and work across the broader Hermosa project, including at Clark. SLIDE 41#43HERMOSA EXPLORATION POTENTIAL A highly prospective regional land package with the potential for future discoveries Taylor near-mine exploration • 138Mt Mineral Resource with a • zinc equivalent grade of 8.61% (a) A highly prospective mineralised system, open at depth and laterally We have defined an Exploration Target of 10 to 95Mt, with a mid case of ~45Mt(a) Peake prospect • High-grade copper-lead-zinc-silver mineralisation, south of Taylor • • Potential for a continuous system connecting Taylor and Peake 5 exploration drill holes planned in CY22, with 2 holes currently underway Notes: a. Refer to important notices (slide 2) for additional disclosure. Hermosa high priority corridor 00 Flux Prospect Patented Unpatented Prospects Deposits Peake Prospect N 2 Km Taylor Deposit ☆ Corridor High Priority SOUTH32 Regional exploration • • Land tenure increased by 119% since acquisition, consolidating the most prospective areas North-west to south-east trending high priority corridor with multiple prospects, identified using surface geophysics, soil sampling and mapping, aligned to historic mining areas Clark Deposit Flux prospect Downdip of a historic mining area in carbonates with the potential to host Taylor-like mineralisation • Expect to drill in early CY23 • Program expected to include up to ~5,500m of diamond drilling SLIDE 42#44SUMMARY We produce metals critical to a low-carbon future We expect to deliver 14% copper equivalent production6 growth in FY23 Our world class development options have the potential to increase volumes into structurally attractive markets Our consistent execution is underpinned by our disciplined capital allocation and strong balance sheet AMBLER METALS Copper, Zinc, Lead, Silver & Gold Roosevelt project (South32) Jupiter project Maguire project EMX Royalty Corp (multiple projects) HERMOSA CERRO MATOSO Zinc, Lead, Silver & Manganese Nickel OSMOC O Operation or development option ▲ Brownfield project ☐ Exploration project, partnership or option Aluminium value chain. Copper Nickel Zinc-lead-silver Manganese ore Metallurgical coal BRAZIL ALUMINA - MRN BRAZIL ALUMINA - ALUMAR Alumina AusQuest (multiple projects) SIERRA GORDA Bauxite MRN life extension BRAZIL ALUMINIUM - ALUMAR Aluminium Adventus Mining Corporation (multiple projects) Copper, Molybdenum, Gold & Silver De-bottlenecking and fourth line Brownfield oxide Sable Resources Minsud Resources HOTAZEL MANGANESE MINES Manganese ore Expansion and logistics Aldebaran Resources MOZAL ALUMINIUM Aluminium AP3XLE HILLSIDE ALUMINIUM Aluminium III SOUTH32 CANNINGTON Silver, Lead & Zinc Harry's Lake (South32) AusQuest Watchie Bore (South32) GEMCO Manganese ore Eastern Leases and Southern Areas Encounter Resources (multiple projects) AusQuest WORSLEY ALUMINA Alumina Decarbonisation and life extension AusQuest AusQuest Iffley (South32) ILLAWARRA METALLURGICAL COAL Metallurgical Coal SLIDE 43#45SUPPLEMENTARY INFORMATION ΞΙΙΙ III= SOUTH32#46EARNINGS SENSITIVITIES III SOUTH32 EBIT sensitivities +/- 10% Annualised estimated impact on FY23e Underlying EBIT of a 10% change in commodity prices or currency(a) US$M 375 Aluminium (b) Metallurgical coal (c) Alumina (b) Manganese ore Nickel 245 214 102 86 82 Copper Silver 26 23 Lead Zinc Australian dollar South African rand Brazilian real Colombian peso Chilean Peso 22 211 135 35 27 11 Notes: a. The sensitivities reflect the annualised estimated impact on FY23e Underlying EBIT of a 10% movement in FY22 actual realised prices for all operations except for Brazil Aluminium which is based on FY22 average index price for aluminium, and FY22 actual average exchange rates applied to FY23 volumes and costs. b. C. Aluminium sensitivity does not include the Group consolidation impact of inter-company alumina sold on index. Aluminium sensitivity is shown without any associated increase in alumina pricing. Includes metallurgical and energy coal at Illawarra Metallurgical Coal. SLIDE 45#47OPERATING UNIT COSTS Operating unit costs FY21 H1 FY22 H2 FY22 FY22 FY22 guidance41 FY22 actual vs. FY22 guidance (5%) 0% Worsley Alumina (US$/t) 214 256 274 265 265 Brazil Alumina (non-operated) 203 262 312 288 (US$/t) Guidance not provided Cannington 34 (US$/t) 124 128 139 133 131 Cerro Matoso 4.01 4.11 4.56 4.34 4.49 (US$/lb) Illawarra Metallurgical Coal 87 123 129 126 126 (US$/t) Australia Manganese35 1.52 1.79 1.94 1.86 1.88 (FOB, US$/dmtu) South Africa Manganese 35 2.48 2.63 2.83 2.73 2.79 (FOB, US$/dmtu) Hillside Aluminium 1,631 1,935 2,318 2,137 52% (US$/t) Mozal Aluminium 1,702 2,008 2,429 2,243 (US$/t) Foreign exchange Price-linked costs (including royalties)42 Controllable costs Raw material inputs Other O FY22 actual vs. FY22 guidance % movement O≤5% of guidance O>5% of guidance Cost breakdown FY22 48% 52% 48% 5% EIII SOUTH32 Commentary to guidance or FY21 Higher caustic soda prices offset by a weaker Australian dollar Lower volumes and costs to recover from the bauxite ship unloader outage, added to higher raw material and energy costs Weaker Australian dollar and lower price- linked royalties more than offset by lower throughput as we built run of mine stocks Lower price-linked royalties and weaker Colombian peso Lower price-linked royalties and weaker Australian dollar offset by lower sales volumes Higher sales volumes and a weaker Australian dollar Higher sales volumes and a weaker South African rand Significant rise in raw material input costs including alumina, coke and pitch, and energy cost inflation Significant rise in raw material input costs including alumina, coke and pitch, and energy cost inflation SLIDE 46#48OPERATING UNIT COSTS GUIDANCE FY23 guidance vs. Operating unit costs H2 FY22 actual FY22 FY23 Guidance 33 FY22 actual (10%) 0% 10% 20% Worsley Alumina 274 265 296 (US$/t) Brazil Alumina (non-operated) 312 288 (US$/t) Guidance not provided Cannington 34 139 133 129 (US$/t) Cerro Matoso 4.56 4.34 4.97 (US$/lb) Illawarra Metallurgical Coal 129 126 116 (US$/t) Australia Manganese35 1.94 1.86 2.08 (FOB, US$/dmtu) South Africa Manganese 35 2.83 2.73 2.66 (FOB, US$/dmtu) Hillside Aluminium (US$/t) Mozal Aluminium (US$/t) Smelter raw material basket costs (% of LME Aluminium)43 Commentary III SOUTH32 Significantly higher caustic soda prices and consumption, and increased freight costs, partially offset by a weaker Australian dollar Will continue to be influenced by energy and raw material input prices, including caustic soda Higher throughput from the optimised mine plan and a weaker Australian dollar, to more than offset higher energy prices Higher price-linked royalties and energy prices, and the impact of the prior year's one-off royalty adjustment (+US$0.13/lb), more than offsetting additional volumes Higher volumes and a weaker Australian dollar to more than offset labour and energy cost inflation Higher labour and contractor costs and rising strip ratio, combined with higher diesel prices, more than offsetting a weaker Australian dollar Continued use of higher cost trucking, offset by draw down of previously built low-cost inventory from the barrier pillar project and a weaker South African rand 6 month averages 80% 2,318 2,137 50% 41% 41% 38% 34% 36% 37% 60% 40% Will continue to be influenced by the price of raw material inputs, the South African rand and inflation-linked energy costs 2,429 2,243 20% Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Foreign exchange Price-linked costs (including royalties)42 Controllable costs ◇ FY23 guidance vs. FY22 actual % movement O≤5% of prior year actual O>5% of prior year actual SLIDE 47#49ALUMINIUM SMELTER COST BREAKDOWN Hillside Aluminium H1 FY22 cost breakdown Mozal Aluminium H2 FY22 cost breakdown H1 FY22 cost breakdown H2 FY22 cost breakdown Electricity Raw materials Electricity Raw materials Labour Pot relining 5% 2% 12% 18% 23% Pot relining Labour 17% 24% 22% 21% 29% 4% Other(a) Other(a) 3% 3% 3% US$1,935/t US$2,318/t US$2,008/t 3% 2% US$2,429/t Notes: a. 151 52% | I HoH impact on costs (US$/t) 35 9 5 52% (10) Alumina Coke Pitch ATF Electricity Other primarily relates to inventory movements and freight. I 53% 107 80 | I 52% HoH impact on costs (US$/t) I | 38 12 7 Alumina Coke Pitch ATF Electricity I SLIDE 48 III SOUTH32#50CLOSURE & REHABILITATION PROVISIONS South32 Group Closure and rehabilitation FY22 FY21 provisions by operation (South32 share) US$M US$M Worsley Alumina 822 825 Brazil Alumina (non-operated) 28 40 Brazil Aluminium (non-operated) 6 6 Americas I Hillside Aluminium(a) 186 206 I Mozal Aluminium 75 49 I I Cannington Cerro Matoso 318 232 Australia 103 115 Illawarra Metallurgical Coal 215 206 Hermosa I Profit and loss impact (+US$41M) 67 2 Balance sheet45 (+US$35M) III SOUTH32 5 19 35 Americas I I Australia 33 31 Southern Africa Southern Africa Eagle Downs Metallurgical Coal 7 7 FY21 Discount rate change Total 1,793 1,717 Discount release (C&R unwind)44 Decrease during year Foreign exchange Balance sheet FY22 Notes: a. Includes the Bayside aluminium smelter. SLIDE 49#51UNDERLYING INCOME TAX EXPENSE III SOUTH32 FY22 FY213 Underlying income tax expense reconciliation and Underlying effective tax rate¹,2 US$M US$M Underlying EBIT profit/(loss) 3,967 1,039 Include: Underlying net finance revenue/(costs) (155) (170) Remove: Share of (profit)/loss of immaterial equity accounted investments Underlying profit/(loss) before taxation 2 9 3,814 878 Income tax expense/(benefit) Tax effect of earnings adjustments to Underlying EBIT Tax effect of earnings adjustments to net finance costs Exchange rate variations on tax balances Tax effect on significant items Sierra Gorda joint venture statutory adjustment income tax Sierra Gorda joint venture statutory adjustment royalty related tax Manganese joint venture statutory adjustments income tax Manganese joint venture statutory adjustments royalty related tax Total adjustments to derive Underlying income tax expense Underlying income tax expense/(benefit) Underlying effective tax rate (ETR) including royalty related tax 31.7% 1,024 (103) 32 247 (13) (7) (20) 66 (26) 1 4 153 124 55 53 186 483 1,210 380 43.3% SLIDE 50#52UNDERLYING NET FINANCE COSTS III SOUTH32 FY22 FY213 Underlying net finance costs reconciliation¹,2 US$M US$M Unwind of discount applied to closure and rehabilitation provisions Change in discount rate on closure and rehabilitation provisions (83) (72) 3 7 Interest on lease liabilities Other Discontinued operations (54) (55) (21) (7) (43) Underlying net finance costs (155) (170) Add back earnings adjustment for exchange rate variations on net debt 40 (52) Sierra Gorda joint venture adjustments"6 62 Manganese joint venture adjustments" 22 18 Total adjustments to derive net finance costs 124 (34) Net finance costs (31) (204) SLIDE 51#53CAPITAL EXPENDITURE GUIDANCE Capital expenditure excluding exploration and intangibles (South32 share) Worsley Alumina Brazil Alumina Brazil Aluminium Hillside Aluminium Mozal Aluminium Cannington Cerro Matoso Illawarra Metallurgical Coal Safe and reliable capital expenditure (excluding EAI) Worsley Alumina Brazil Alumina Cerro Matoso Illawarra Metallurgical Coal Other operations Improvement and life extension capital expenditure (excluding EAI) Hermosa Growth capital expenditure Total capital expenditure (excluding EAI) Total capital expenditure (including EAI) Capital expenditure for EAI excluding exploration and intangibles (South32 share) Sierra Gorda Australia Manganese South Africa Manganese Safe and reliable capital expenditure (EAI) Sierra Gorda Australia Manganese South Africa Manganese Improvement and life extension capital expenditure (EAI) Total capital expenditure (EAI) EIII SOUTH32 FY22 FY23e US$M US$M 47 45 51 50 10 20 30 10 17 43 60 18 40 177 263 367 515 8 00 1 44 19 19 4 12 3 19 15 58 85 97 290 97 290 522 890 684 1,245 36 205 56 50 14 15 106 270 45 43 14 5 28 56 85 162 355 SLIDE 52#541. 2. 3. 34567 4. 5. 6. 7. 8. 9. FOOTNOTES SOUTH32 South Africa Manganese ore has been reported as a 54.6% interest (previously 60%) reflecting our Metalloys manganese alloy smelter (60% interest) having been placed on care and maintenance, and aligning with our interest in Hotazel Manganese Mines (HMM). South32 has a 44.4% ownership interest in HMM. 26% of HMM is owned by a B-BBEE consortium comprising Ntsimbintle Mining (9%), NCAB Resources (7%), Iziko Mining (5%) and HMM Education Trust (5%). The interests owned by NCAB Resources, Iziko Mining and HMM Education Trust were acquired using vendor finance with the loans repayable via distributions attributable to these parties, pro rata to their share in HMM. Until these loans are repaid, South32's interest in HMM is accounted at 54.6%. During the current financial reporting period the internal reporting of the Group's consolidated financial results was changed. The underlying information reflects the Group's interest in material equity accounted joint ventures and is presented on a proportional consolidation basis, which is the measure used by the Group's Board and management to assess their performance. FY21 comparative information has been restated to reflect this change. FY21 includes TEMCO and discontinued operation South Africa Energy Coal. Including distributions from our manganese and Sierra Gorda EAls. Based on FY24 production guidance of 179kt at Brazil Aluminium and 370kt at Mozal Aluminium, compared to prior capacity of 273kt at Mozal Aluminium. Group FY22 (1,374kt) and FY23e (1,568kt) copper equivalent production was calculated using FY22 realised prices for all operations except for Brazil Aluminium which is based on the FY22 average index price for aluminium. Operating margin comprises Underlying EBITDA excluding third party product EBITDA, divided by revenue excluding third party product revenue. Metrics describing health, safety, environment, people and community related performance in this presentation apply to 'operated operations' that have been wholly owned and operated by South32, or that have been operated by South32 in a joint arrangement. Total Recordable Injury Frequency (TRIF): (The sum of recordable injuries x 1,000,000) + exposure hours. This is stated in units of per million hours worked for employees and contractors. Total recordable illness frequency (TRILF): (The sum of recordable illnesses x 1,000,000) + exposure hours. To ensure that incident classification definitions are applied uniformly across our workforce, we have adopted the United States Government Occupational Safety and Health Administration (OSHA) and the International Council on Mining and Metals (ICMM) guidelines for the recording and reporting of occupational injuries and illnesses. 10. In July 2022, South32 received an ESG Risk Rating of 23.9 from Sustainalytics and was assessed to be at medium risk of experiencing material financial impacts from ESG factors. Copyright ©2022 Sustainalytics. All rights reserved. This presentation contains information developed by Sustainalytics (www.sustainalytics.com). Such information and data are proprietary of Sustainalytics and/or its third party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers. 11. In May 2022, South32 received a rating of A (on a scale of AAA - CCC) in the MSCI ESG Ratings assessment. 12. Generic term meaning Africans, Coloureds and Indians who are citizens of the Republic of South Africa by birth or descent; or who become citizens of the Republic of South Africa by naturalisation before 27 April 1994 or on or after 27 April 1994 and who would have been entitled to acquire citizenship by naturalisation prior to that date. 13. The Senior Leadership Team includes Presidents and Vice Presidents reporting to members of the South32 Lead Team. 14. The Operational Leadership Team includes all General Managers and Managers reporting to Vice President Operations, and all Managers reporting to General Managers at an operation. 15. Other includes improvement in profitability from an increased ownership in Mozal Aluminium since 31 May 2022, closure of the Bayside Aluminium smelter and the divestment of TEMCO, partially offset by Metalloys' being placed on care and maintenance. 16. Other includes lower depreciation and amortisation at Illawarra Metallurgical Coal and the recognition of historical tax credits at Brazil Alumina. 17. Underlying net finance costs and Underlying income tax expense are actual FY22 results, not year-on-year variances. 18. Other includes increases in costs from an increased ownership in Mozal Aluminium, partially offset by cost savings associated with the Metalloys manganese alloy smelter having been placed on care and maintenance and costs related to the closed Bayside Aluminium smelter. 19. FY21 third party product cost is US$35M for aluminium, US$10M for alumina, US$137M for coal, US$35M for manganese, US$84M for freight services and US$91M for raw materials. FY22 third party product cost is US$102M for aluminium, US$17M for alumina, US$108M for coal, US$40M for manganese, US$138M for freight services and US$165M for raw materials. 20. Market traded consumables and price-linked costs excludes the impact of smelter power costs. 21. Other includes the elimination of marketing purchases. 22. Cost base includes EAIS and excludes Other income. FY22 includes a US$96M adjustment for Other income and other accounting related adjustments to reconcile to Underlying revenue minus Underlying EBITDA (FY21 includes a US$160M adjustment for Other income and other accounting related adjustments to reconcile to Underlying revenue minus Underlying EBITDA). 23. Other (FY22 expenditure) includes bauxite consumption at Brazil Alumina. Other (YoY increase) includes accounting related adjustments. 24. 25. 26. Excludes our manganese and Sierra Gorda EAIS. Includes intangibles and capitalised exploration. Other primarily includes vendor support provided as part of the divestment of South Africa Energy Coal, foreign exchange movements on net cash and capitalised lease liabilities. Cash and debt balances, and equity are as at 30 June 2022. 27. Refer to market release "South32 secures sustainability-linked revolving credit facility" dated 15 December 2021. 28. Refer to market release "South32 prices US$700M of Senior Notes" dated 8 April 2022. 29. Worsley Alumina lease liability for two multi fuel cogeneration units commenced in 2014 with a tenor of 32 years (incorporating a 7-year extension option). 30. EPS refers to Underlying earnings per share since inception of the capital management program. Cumulative EPS is calculated as the sum of Underlying earnings over time, divided by shares outstanding with or without the share buy-back. SLIDE 53#55FOOTNOTES III SOUTH32 31. Sierra Gorda's copper equivalent production (kt) was calculated by aggregating revenues from copper, molybdenum, gold and silver, and dividing the total Revenue by the price of copper. FY22 realised prices for copper (US$3.50/lb), molybdenum (US$18.48/lb), gold (US$1,934/oz) and silver (US$23.5/oz) have been used for FY22 and FY23e. 32. Zinc equivalent (kt) was calculated by aggregating revenues from payable silver, lead and zinc, and dividing the total Revenue by the price of zinc. FY22 realised prices for zinc (US$3,248/t), lead (US$2,046/t) and silver (US$21.0/oz) have been used for FY21, FY22, FY23e and FY24e. 33. FY23 Operating unit cost guidance includes royalties (where appropriate) and the influence of exchange rates, and includes various assumptions for FY23, including: an alumina price of US$364/t; an average blended coal price of US$265/t for Illawarra Metallurgical Coal; a manganese ore price of US$6.40/dmtu for 44% manganese product; a nickel price of US$9.94/lb; a silver price of US$22.11/troy oz; a lead price of US$2,059/t (gross of treatment and refining charges); a zinc price of US$3,480/t (gross of treatment and refining charges); a copper price of US$4.07/lb (gross of treatment and refining charges); a molybdenum price of US$16.95/lb (gross of treatment and refining charges); a gold price of US$1,860/troy oz; an AUD:USD exchange rate of 0.69; a USD:ZAR exchange rate of 16.62; a USD: COP exchange rate of 3,851; and a reference price for caustic soda; all of which reflected forward markets as at June 2022 or our internal expectations. 34. Sierra Gorda and Cannington Operating unit cost is Revenue less Underlying EBITDA divided by ore processed. Periodic movements in finished product inventory may impact Operating unit costs as related marketing costs may change. 35. FOB ore Operating unit cost is Revenue less Underlying EBITDA, freight and marketing costs, divided by ore sales volume. 36. 37. Cerro Matoso has a license to operate to 1 August 2029 under terms of Contract 051-96M, with the option of a 15-year term extension to 2044. In FY21, we developed a scenario in which global warming is assumed to be limited to 1.5°C above pre-industrial levels and analysed the potential impacts on commodity demand. In this scenario the world transitions to a low-carbon economy at a much faster rate than in our base case (which is a probable trajectory of at least 2°C warming). The chart illustrates projected long-term commodity demand in the 1.5°C scenario compared to our base case. Refer to market release "Financial Results and Outlook Year Ended 30 June 2022" dated 25 August 2022. Sale price includes US$103M in cash payments, US$82M of Anglo Pacific shares and contingent payments of up to US$15M. 39. Refers to aluminium produced using renewable power. 38. 40. Refer to media release "South32 completes acquisition of additional interest in Mineração Rio do Norte" dated 2 May 2022. 41. FY22 Operating unit cost guidance includes royalties (where appropriate) and the influence of exchange rates, and includes various assumptions for FY22, including: an alumina price of US$399/t; an average blended coal price of US$382/t for Illawarra Metallurgical Coal; a manganese ore price of US$6.07/dmtu for 44% manganese product; a nickel price of US$10.60/lb; a silver price of US$24.22/troy oz; a lead price of US$2,308/t (gross of treatment and refining charges); a zinc price of US$3,461/t (gross of treatment and refining charges); an AUD:USD exchange rate of 0.73; a USD:ZAR exchange rate of 15.06; a USD: COP exchange rate of 3,843; and a reference price for caustic soda; all of which reflected forward markets as at March 2022 or our internal expectations. Price-linked costs reflect commodity price-linked and market traded consumables costs. 42. 43. Sources: LME, Baiinfo, Aladinny, AZ China, CRU, Platts, Jacobs. Calculation assumes 1t of aluminium, 1.9t alumina, 0.35t coke, 0.075t pitch and 0.02t aluminium tri-fluoride. 44. Unwind of discount applied to closure and rehabilitation provisions. 45. Balance sheet movement (+US$35M) reflects the net impact of a US$167M increase in provisions as a result of amounts capitalised for changes in costs and estimates related to open mines, and a US$19M increase in provisions as a result of portfolio changes, partially offset by a US$127M decrease in provisions associated with the capitalisation of foreign exchange impacts on restatement of closure provisions relating to open sites, a US15M decrease in provisions as a result of amounts capitalised from changes in discount rates, and a US$9M decrease as a result of utilisation. 46. The underlying information reflects the Group's interest in material equity accounted joint ventures and is presented on a proportional consolidation basis, which is the measure used by the Group's management to assess their performance. The joint venture adjustments reconcile the proportional consolidation to the equity accounting position included in the Group's consolidated financial statements. The denotation (e) refers to an estimate or forecast year. The following abbreviations have been used throughout this presentation: billion (B); cents per share (cps); dry metric tonne (dmt); Dendrobium Next Domain (DND); earnings before interest and tax (EBIT); earnings before interest, tax, depreciation and amortisation (EBITDA); free on board (FOB); feasibility study (FS); financial year (FY); greenhouse gas (GHG); Illawarra Metallurgical Coal (IMC); inclusion and diversity (I&D); million (M); Mineração Rio do Norte (MRN); Ore Sorting and Mechanical Ore Concentration (OSMOC); pre-feasibility study (PFS); return on invested capital (ROIC); Tasmanian Electro Metallurgical Company (TEMCO); total recordable injury frequency (TRIF); total recordable illness frequency (TRILF); United States (US) and year to date (YTD). SLIDE 54#56ΞΙΙΙ ΞΙΙΙ SOUTH32