Baar, Switzerland
10 December, 2014
Glencore plc - 2014 Investor Day
Today Glencore is hosting its 2014 Investor Day in London. In addition to the Group's outlook, senior management will provide an update on our agricultural products, coal, copper, nickel, oil and zinc businesses.
Highlights include:
· Unparalleled track record of value creation since 1994, based on material management ownership;
· Established portfolio of Tier one industrial assets with a truly diversified footprint by geography and commodity supported by positive market fundamentals;
· Robustly profitable industrial operations post merger integration;
o expansionary capital geared to the right commodities and opportunities focused on modular/brownfield investment;
o sustaining capex confirmed around $4.0bn p.a. expected to fall closer to $3.5bn p.a. by 2017;
· Marketing business that is highly cash-flow generative with unique scale, diversification and skills providing a low-risk defensive earnings driver;
· Post-integration cost efficiencies and focus now ingrained across the industrial assets, cementing mostly first quartile cost positions;
· Clear and consistent framework for capital allocation;
o continued optimisation of asset portfolio underpinned by target RoE of 20-25% for incremental industrial capital and a sustainable marketing RoE of 40-65%
· Optimal balance sheet structure for equity returns, liquidity and cost of capital;
o Strong Baa/BBB target provides such with optimal market access and funding costs;
· Glencore will continue to focus on return of excess capital to shareholders;
o USD$1bn equity buyback c.65% complete
Ivan Glasenberg, CEO, commented:
"Capital misallocation, not a lack of demand, remains a key issue for the sector resulting in a clear need to differentiate by commodity. Our established portfolio of Tier one industrial assets supported by our unique marketing business and commodity diversification provides Glencore with superior price insulation and optionality.
"Our ability to acknowledge and react accordingly to the supply/demand fundamentals across our markets has played a key role in enabling us to continue to deliver on our main objectives; the efficient deployment of capital to grow earnings, cashflow and dividend per share.
"Alongside the successful delivery of a handful of key growth projects, these objectives remain unchanged for 2015. We will continue our disciplined approach to capital allocation, based on the supply/demand fundamentals, as well as maintaining our focus on operational efficiency. These factors, underpinned by material management ownership, will enable us to maximise free cash flow growth. This will provide us with numerous options for delivering ongoing value for shareholders."
The presentations will begin at at 08:00 (UK) and close at 13:00 (UK). All presentations will be available to watch via a live webcast, details of which can be found on our website: http://www.glencore.com/investors/investor-day-2014
The webcast can be viewed at: http://www.media-server.com/m/p/eyfo3gqe
Dial in details:
Local - London, United Kingdom: +44(0)20 3427 1912
National free phone - United Kingdom: 0800 279 4992
Local - New York, USA: +1646 254 3364
National free phone - USA: 1877 280 1254
Local - Hong Kong, Hong Kong: +8523071 3092
National free phone - Hong Kong: 800 905 743
Local - Zurich, Switzerland: +41(0)43 547 8000
National free phone - Switzerland: 0800 345 603
Local - Johannesburg, South Africa: +2711 019 7076
National free phone - South Africa: 0800 984 126
Password: 2887291
For further information please contact:
Investor:
Paul Smith |
Martin Fewings |
Elisa Morniroli |
Media:
Charles Watenphul |
Finsbury |
|
About Glencore
Glencore is one of the world's largest global diversified natural resource companies. As a leading integrated producer and marketer of commodities with a well-balanced portfolio of diverse industrial assets, we are strongly positioned to capture value at every stage of the supply chain, from sourcing materials deep underground to delivering products to an international customer base.
Glencore's industrial and marketing activities are supported by a global network of more than 90 offices located in over 50 countries. Our diversified operations comprise over 150 mining and metallurgical sites, offshore oil production assets, farms and agricultural facilities. We employ approximately 200,000 people, including contractors.
Forward looking statements
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No statement in this document is intended as a profit forecast or a profit estimate and no statement in this document 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.
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