FY22 Overview & Safety Program Update
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34567
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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.
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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).
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Other (FY22 expenditure) includes bauxite consumption at Brazil Alumina. Other (YoY increase) includes accounting related adjustments.
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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.
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