Glencore PLC 2015 Investor Update

Baar, Switzerland
10 December, 2015
Glencore plc investor update

Prepared for current and even lower commodity prices through the rapid delivery
of debt reduction measures
Today, Glencore is hosting an investor update call at 8.30am (GMT). The call will update on the
progress made against the debt reduction initiatives announced on 7 September.
Highlights include:
Positive free cash flow:
More than $2 billion of free cash flow at spot prices; Glencore will remain comfortably
free cash flow positive at materially lower price levels
Estimated 2016 EBITDA of c.$7.7bn at current prices
Strong and increasing liquidity:
Current liquidity increased to more than $14 billion and will be further enhanced as the
debt reduction plan measures are delivered
Debt reduction/capital preservation measures increased to $13 billion (previous target of

$10.2 billion) with $8.7 billion already achieved/locked-in
New net debt target of $18-19 billion by the end of 2016 (previous target of low $20s
billion):
Industrial asset cash positioning significantly enhanced:
Further reduction in capex: $5.7 billion for 2015E and $3.8 billion in 2016E, down from
$6 billion and $5 billion respectively
Production cuts have reduced overall supply and cash outlay; resources preserved for
an improved future margin environment
Marketing remains a unique, low risk defensive earnings driver:
Despite significantly lower commodity prices, Marketing adjusted EBIT for 2015E of
c.$2.5 billion; underpinned by continued strength in oil and stronger contributions from
Agriculture and Metals during the second half
2016E marketing EBIT guidance of $2.4-2.7 billion reflects lower working capital levels
and reduced copper, zinc, lead and coal volumes
Ivan Glasenberg, CEO, commented:

In September, we announced a number of measures to reduce our debt. Today we show
significant delivery on those commitments, with $8.7 billion achieved to date, and are able to
announce an increase in our net debt reduction target measures by almost $3 billion to $13
billion. Glencore is well placed to continue to be cash generative in the current environment
and at even lower prices. We retain a high degree of flexibility and will continue to review the
need to act further as required."
Page 2
Details of the call and presentation material are available on our website:
http://www.glencore.com/investors/investor-call-2015
Please dial in 5-10 minutes prior to the start time using the number / conference ID below
Confirmation Code:
1348329
London, United Kingdom:

National free phone - United Kingdom:
Johannesburg, South Africa:
National free phone - South Africa:
Hong Kong, Hong Kong:
National free phone - Hong Kong:
New York, USA:
National free phone - USA:
Sydney, Australia:
National free phone - Australia:
Zurich, Switzerland
National free phone - Switzerland:
+44(0)20 3427 1901

0800 279 4992
+2711 019 7075
0800 984 126
+8523071 3093
800 905 740
+1646 254 3362
1877 280 2342
+61(0)2 9253 5963
1800 040 158
+41(0)44 580 7216
0800 345 602
A replay of the call will be available on 10 December 2015 until 8 January 2016.
Replay Passcode:
1348329
London, United Kingdom:

Johannesburg, South Africa:
Hong Kong, Hong Kong:
Geneva, Switzerland:
New York, USA:
Sydney, Australia:
+44(0)20 3427 0598

+2711 019 7025
+8523011 4669
+41(0)22 592 7553
+1347 366 9565
+61(0)2 8014 7928
For further information please contact:

Investors
Paul Smith
Martin Fewings
Elisa Morniroli
Media
Charles Watenphul
Pam Bell
t: +41 41 709 24 87
t: +41 41 709 28 80
t: +41 41 709 28 18
m: +41 79 947 13 48
m: +41 79 737 56 42
m: +41 79 833 05 08
[email protected]
[email protected]
[email protected]
t: +41 41 709 24 62
t: +44 20 7412 3471
m: +41 79 904 33 20
m: +44 77 3031 9806
[email protected]
[email protected]
www.glencore.com
www.youtube.com/glencorevideos
Glencore is one of the worlds largest global diversified natural resource companies and a major producer
and marketer of more than 90 commodities. The Group's operations comprise of over 150 mining and
metallurgical sites, oil production assets and agricultural facilities.
With a strong footprint in both established and emerging regions for natural resources, Glencore's
industrial and marketing activities are supported by a global network of more than 90 offices located in
over 50 countries.
Page 3
Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation,
oil and food processing. We also provide financing, logistics and other services to producers and
consumers of commodities. Glencore's companies employ around 181,000 people, including contractors.
Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the
International Council on Mining and Metals. We are an active participant in the Extractive Industries
Transparency Initiative.
Forward looking statements

This announcement contains statements that are, or may be deemed to be, forward looking statements
which are prospective in nature. These forward looking statements may be identified by the use of forward
looking terminology, or the negative thereof such as outlook, "plans", "expects" or "does not expect", "is
expected", "continues", "assumes", "is subject to", "budget", "scheduled", "estimates", "aims", "forecasts",
"risks", "intends", "positioned", "predicts", "anticipates" or "does not anticipate", or "believes", or variations
of such words or comparable terminology and phrases or statements that certain actions, events or
results "may", "could", "should", shall, "would", "might" or "will" be taken, occur or be achieved. Such
statements are qualified in their entirety by the inherent risks and uncertainties surrounding future
expectations. Forward-looking statements are not based on historical facts, but rather on current
predictions, expectations, beliefs, opinions, plans, objectives, goals, intentions and projections about
future events, results of operations, prospects, financial condition and discussions of strategy.
By their nature, forward looking statements involve known and unknown risks and uncertainties, many of
which are beyond Glencores control. Forward looking statements are not guarantees of future
performance and may and often do differ materially from actual results. Important factors that could cause
these uncertainties include, but are not limited to, those discussed in Glencores Annual Report 2014 and
Risks and uncertainties in Glencores 2015 Half-Year Report.
Neither Glencore nor any of its associates or directors, officers or advisers, provides any representation,
assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking
statements in this announcement will actually occur. You are cautioned not to place undue reliance on
these forward-looking statements which only speak as of the date of this document. Other than in
accordance with its legal or regulatory obligations (including under the UK Listing Rules and the
Disclosure and Transparency Rules of the Financial Conduct Authority and the Rules Governing the
Listing of Securities on the Stock Exchange of Hong Kong Limited and the Listing Requirements of the
Johannesburg Stock Exchange Limited), Glencore is not under any obligation and Glencore and its
affiliates expressly disclaim any intention, obligation or undertaking to update or revise any forward
looking statements, whether as a result of new information, future events or otherwise. This
announcement shall not, under any circumstances, create any implication that there has been no change
in the business or affairs of Glencore since the date of this announcement or that the information
contained herein is correct as at any time subsequent to its date.
No statement in this announcement is intended as a profit forecast or a profit estimate and no statement
in this announcement should be interpreted to mean that earnings per Glencore share for the current or
future financial years would necessarily match or exceed the historical published earnings per Glencore
share.
This announcement does not constitute or form part of any offer or invitation to sell or issue, or any
solicitation of any offer to purchase or subscribe for any securities. The making of this announcement
does not constitute a recommendation regarding any securities.

Glencore PLC 2015 Investor Update

Uploaded by

Copyright:

Available Formats

Glencore PLC 2015 Investor Update

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Glencore PLC 2015 Investor Update

Uploaded by

Copyright:

Available Formats

Baar, Switzerland

Glencore plc investor update

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

Strong and increasing liquidity:

Debt reduction/capital preservation measures increased to $13 billion (previous target of

Marketing remains a unique, low risk defensive earnings driver:

Ivan Glasenberg, CEO, commented:

London, United Kingdom:

+44(0)20 3427 1901

London, United Kingdom:

+44(0)20 3427 0598

For further information please contact:

Forward looking statements

You might also like