H1 FY21 Finance and Cost Analysis

OPERATING UNIT COST GUIDANCE EIII SOUTH32 Operating unit costs H1 FY21 actual FY21 prior guidance21 FY21 adjusted guidance FY21 new guidance 16 (15%) (5%) FY21 new guidance vs. FY21 prior guidance 5% Commentary 15% Worsley Alumina 204 205 209 210 (US$/t) Stronger Australian dollar partially offset by lower caustic prices Brazil Alumina (non-operated) (US$/t) 206 Guidance not provided Guidance not provided Cost profile will continue to be influenced by the Brazilian real, prices for energy and raw material inputs Illawarra Metallurgical Coal 77 84 89 83 (US$/t) Increased production guidance to more than offset a stronger Australian dollar Australia Manganese17 (FOB, US$/dmtu) 1.39 1.48 1.56 South Africa Manganese17 2.28 2.25 2.46 2.44 (FOB, US$/dmtu) Cerro Matoso 3.79 3.97 4.15 4.10 (US$/lb) 1.49 Stronger Australian dollar partially offset by equipment productivity Stronger South African rand and on-going use of higher cost trucking partially offset by cost efficiencies and lower price-linked royalties Higher price-linked royalties and electricity prices partially offset by increased volumes Cannington 18 (US$/t) 124 111 123 123 Stronger Australian dollar and higher price-linked royalties Smelter raw material basket cost inflation (% of LME Aluminium) 24 80% Hillside Aluminium (US$/t) 1,536 60% Mozal Aluminium (US$/t) 41% 38% 6 month averages While Operating unit cost guidance is not provided for our aluminium smelters their cost profile will continue to be influenced by the South African rand and the price of raw material inputs 40% 1,585 20% Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Controllable costs Foreign exchange Price-linked costs (including royalties) 23 O FY21 new vs. FY21 prior guidance % movement O≤ 5% of guidance O>5% of guidance SLIDE 35

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