Glencore plc

Good morning, good afternoon. Thank you for joining us. Welcome to our half-year 2023 financial results. Presenting today will be Gary Nagel and Stephen Kalman. And I'll hand over to Gary to commence the call.

Thanks, Martin. Good morning to all of you or those who are dialing in from other parts of the world. Good afternoon, good evening. As Martin said, I'm joined here by Steve. Peter Fraser is also with us on the industrial side if there's any questions on that. But I think let's kick off straight into the presentation. And if we go to slide four, as we normally do on our financial scorecard, looking at the first half, a real solid set of results for the first half of the year. It's very easy to be a bit caught up in some of the negative variances that we see on that slide, given the tremendous year we had in 2022 with extremely high energy prices huge arbitrage opportunities, huge volatility. But if you look at the results as a whole for 2023 versus some of our history, and if we exclude 2022, it's the best first half we've had in the last 10 years. Of course, as we know, 2022 was an exceptional year because of the circumstances of the year. But this has been a very solid and, in fact, record-breaking first half of the year. So drilling down into some of the numbers, and Steve will obviously get into more detail on that later, we've achieved an adjusted EBITDA for the year of $9.4 billion, $7.4 billion of that coming out of our industrial asset business. And on the marketing side, an adjusted marketing EBIT of $1.8 billion. As we've said, that's annualizing above the top end of our range. We normally guide a range of 2.2 to 3.2 billion for the year. We've guided that we would exceed the top end of our range and guided between 3.5 and 4 billion for the full year. So we're nicely on track to meet that guidance for the full year and a very solid and strong set of results on the marketing side of $1.8 billion. The business remains highly cash generative. And during the first half of the year, the cash generated by operating activities was just short of $8.5 billion, which has allowed us to return additional cash to our shareholders. So today we're announcing a $2.2 billion top-up shareholder return. That's broken up between $1 billion in cash dividends and $1.2 billion in share buyback. Steve will take you through the details of how we calculate that versus our formulaic capital returns policy. There's a slide on that later in the presentation. But when we add that to the existing returns that we've already announced for 2023, that gives us $9.3 billion that we're returning back to shareholders for 2023. So a really strong and solid set of results to be able to repay our shareholders, provide them good returns on their investment, and in a very strong business. Moving on to slide five. where we have our ESG scorecard. On the environmental side, and starting there during the course of the year, the early part of the year, we published updates on our progress in three main areas, that being climate, water, and nature. And those who haven't seen those reports or haven't been able to review them in detail, I encourage you to have a look at our 2022 climate report, which is a standalone report, as well as our 2022 sustainability report, we really drill down into the details on those three major areas as well as other areas of our business and provides real transparency on how we approach our ESG and in particular environmental side of our business. On the social side, our first and primary goal every day that we go to work and we wake up every morning is to keep

keep our people safe.