H1 FY21 Finance and Cost Analysis

CAPITAL MANAGEMENT FRAMEWORK Our framework remains unchanged A strong balance sheet is at the core of our strategy Capital management framework Net cash/(debt) (US$M) Maximise cash flow ROIC 2,400 2,000 Competition for excess capital 1,600 Investment in our business Acquisitions 1,200 Greenfield exploration Share buy-backs Special dividends Distribute a minimum 40% of Underlying earnings as ordinary dividends Maintain safe and reliable operations and an investment grade credit rating through the cycle Cash flow priorities 800 400 H1 H2 H1 H2 H1 H2 H1 H2 H1 FY17 FY17 FY18 FY18 FY19 FY19 FY20 FY20 FY21 Framework designed to reward shareholders as financial performance improves Shareholder returns (paid and committed) (US$M) 600 500 400 300 200 100 H1 FY17 H2 FY17 H1 FY18 H2 FY18 H1 FY19 H2 FY19 Remaining capital management program On-market share buy-back Special dividends Ordinary dividends H1 FY20 H2 FY20 H1 FY21 H2 FY21e SLIDE 22 III SOUTH32

View entire presentation