Investor Day - Xstrata

Glencore’s flexible capital model• Two distinct pools of capital centrally funded and allocated• Marketing• Industrial• Marketing: ~$20bn of capital employed• working capital average turnover cycle of ~35 days• target for 80% debt-funded• Marketing debt is frequently refreshed; average duration of debt facilities versus use is a highlyconservative 20x• 2013 earnings benefit from Viterra and Xstrata• target RoE is 40%-65%• Industrial: ~$100bn of capital employed• target of 30-40% debt-funded; or < 3x Net Debt/EBITDA• target RoE is 20-25% for new capital/projects• earnings to fully benefit from ramp-up of Koniambo, Optimum, E&P, African copper belt, Prodeco,etc• portfolio optimisation will also boost returns on equity33