Slides
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10 September 2025 CLIMATE CHANGE ACTION PLAN BRIEFING
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SLIDE 2 • This presentation should be read in conjunction with the “Climate Change Action Plan 2025” released on 28 August 2025, which is available on South32’s website (www.south32.net). • FORWARD-LOOKING STATEMENTS AND SCENARIO ANALYSIS • This presentation contains forward-looking statements, including but not limited to statements regarding climate change, energy transition scenarios, carbon pricing and climate-related targets, goals and commitments. These forward-looking statements reflect South32’s current expectations, best estimates and assumptions as at the date of this presentation. A range of variables could cause actual results or trends to differ materially from the statements we have made, including but not limited to: financial and economic conditions in various countries; fluctuations in demand, price, or currency; operating results; development progress including approvals; risks, including physical, technology and carbon emissions reductions risks; industry competition; loss of market for South32’s products; legislative, fiscal, and regulatory developments; the conduct of joint venture participants and contractual counterparties, and estimates relating to cost, engineering, reserves and resources. These forward-looking statements are not guarantees or predictions of future performance or outcomes, or statements of fact, involve known and unknown risks and uncertainties, and may rely on assumptions that may or may not prove to be correct or eventuate, or be impacted by additional factors to any assumptions disclosed, which may cause actual results to differ materially from those expressed in this presentation. South32 makes no representation, assurance or guarantee as to the accuracy, completeness or likelihood of fulfilment of any forward-looking statement, any outcomes expressed or implied in any forward-looking statement or any underlying assumptions on which it is based. • Except as required by applicable laws or regulations, South32 does not undertake to publicly update or review any forward-looking statements. South32 cautions against reliance on any forward-looking statements or guidance, particularly in light of the long time horizon which this presentation discusses and the inherent uncertainty in possible policy, market and technological developments in the future. Past performance cannot be relied on as a guide to future performance. • NON-IFRS FINANCIAL INFORMATION • This presentation includes certain non-IFRS financial measures, including Underlying earnings and Underlying EBITDA, Operating margin, Free cash flow, return on invested capital and net cash/debt. These measures are used internally by management to assess the performance of our business, make decisions on the allocation of our resources and assess operational management. Non-IFRS measures have not been subject to audit or review and should not be considered as an indication of or alternative to an IFRS measure of profitability, financial performance or liquidity. • NO OFFER OF SECURITIES • Nothing in this presentation should be read or understood as an offer or recommendation to buy or sell South32 securities, or be treated or relied upon as a recommendation or advice by South32. • RELIANCE ON THIRD PARTY INFORMATION • Certain information contained in this presentation is based on information prepared by third parties. South32 has not sought to independently verify information obtained from public and third-party sources and makes no representations or warranties as to accuracy, completeness, reasonableness or reliability of such information. • NO FINANCIAL OR INVESTMENT ADVICE – SOUTH AFRICA • South32 does not provide any financial or investment 'advice' as that term is defined in the South African Financial Advisory and Intermediary Services Act, 37 of 2002, and we strongly recommend that you seek professional advice. • MINERAL RESOURCES AND ORE RESERVES • Information in this presentation that relates to Ore Reserve and/or Mineral Resource estimates for all operations and projects was declared as part of South32’s annual Resource and Reserve declaration in the FY25 Annual Report (www.south32.net) issued on 28 August 2025 and prepared by Competent Persons in accordance with the requirements of the JORC Code. South32 confirms that it is not aware of any new information or data that materially affects the information included in the original announcements. All material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. South32 confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. IMPORTANT NOTICES
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ACKNOWLEDGEMENT OF COUNTRY
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AGENDA SLIDE 4 GRAHAM KERR Chief Executive Officer KELLY O’ROURKE Chief Legal, External Affairs and Sustainability Officer 1. Climate Change Action Plan 2025 2. A portfolio for the global energy transition 3. Working to reduce our emissions 4. Strengthening our resilience to climate impacts 5. Summary and Q&A
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Strengthen our resilience to climate impactsSupport emissions reduction across our value chain SLIDE 5 OUR CLIMATE CHANGE ACTION PLAN 2025 We have matured our approach to climate change to reflect progress, learnings and updated risks, while remaining broadly consistent with our inaugural CCAP Position our portfolio for the energy transition Reduce our operational emissions Taking climate action Key enablers Government engagement Governance and reporting Climate risk management Support a just transition
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OUR PURPOSE AND STRATEGY Our purpose To make a difference by developing natural resources, improving people’s lives now and for generations to come. We are trusted by our owners and partners to realise the potential of their resources. We optimise our business by working safely, minimising our impact, consistently delivering stable and predictable performance, and continually improving our competitiveness. • Our purpose is underpinned by a simple strategy We unlock the full value of our business through our people, innovation, projects and technology. We identify and pursue opportunities to sustainably reshape our business for the future, and create enduring social, environmental and economic value.SLIDE 6
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ADDRESSING CLIMATE CHANGE Repositioning our portfolio, working to reduce emissions and strengthening our resilience to climate impacts Notes: a. The goals of the Paris Agreement underpin government efforts to limit global temperature rise to well below 2 degrees this ce ntury and to pursue efforts to limit the increase to 1.5 degrees. b. Target is defined as an intended outcome in relation to which we have identified one or more pathways for delivery of that ou tcome, subject to certain assumptions or conditions. c. Goal is defined as an aspiration to deliver an outcome for which we have not identified a pathway for delivery, but for which efforts will be pursued towards achieving that outcome, subject to certain assumptions or conditions. d. Refers to substantially lower levels of GHG emissions when compared to the current state. Where used in relation to South32’s products or portfolio, it refers to enhancement of existing methods, practices and technologies to substantially lower the level of embodied GHG emissions as compared to the current state. Our journey addressing climate change: Committed to supporting the goals of the Paris Agreement(a) Set a target(b) to halve our net operational emissions (Scope 1 and 2) by FY35, relative to FY21 levels Expanded our net zero by 2050 goal(c) to include Scope 3 emissions Repositioned our portfolio toward minerals and metals critical to the energy transition Invested in energy efficiency and decarbonisation projects Since our last Climate Change Action Plan (CCAP) in 2022 we have: Commenced development of the first stage of our regional scale Hermosa project Sold Illawarra Metallurgical Coal (IMC), reducing our transition risk and Scope 3 emissions Converted two of Worsley Alumina's coal-fired boilers to natural gas as an interim step Continued working with stakeholders towards securing low-carbon(d) energy for Hillside Aluminium Enhanced our analysis, understanding and disclosure of transition and physical climate change risks SLIDE 7
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Portfolio repositioned towards minerals and metals critical to the world’s energy transition Commodities Applications Portfolio opportunities Aluminium value chain Lightweight metal for electric vehicles (EV), power transmission, construction and packaging Base metals Used in EVs and renewable power infrastructure, distribution and storage Manganese Required for steel production and recycling, plus emerging demand in EV batteries South32 FY25 Underlying EBITDA(a) New mining areas at Worsley Alumina Energy transition projects and electrification studies at Worsley Alumina AP3XLE implementation and work to secure low-carbon electricity at Hillside Aluminium Large-scale, long-life Taylor zinc-lead-silver project under construction Copper growth options at Sierra Gorda including fourth grinding line and stockpiled oxide material 20+ greenfield exploration partnerships and options in highly-prospective regions Life extension options at Australia Manganese Potential to produce battery-grade manganese at Clark for the North American EV market A PORTFOLIO FOR THE ENERGY TRANSITION 51% 9% 23% 13% 4% Notes: a. Presented on a proportional consolidation basis. Excludes Hermosa, third party product and Group and Unallocated EBITDA. FY25 excludes IMC following its divestment in August 2024, and our Manganese EAI as Australia Manganese was temporarily suspended due to Tropical Cyclone Megan. b. On 7 July 2025, South32 entered into a binding agreement for the sale of Cerro Matoso to an entity owned by CoreX Holding B.V. Refer to market release "Agreement to divest Cerro Matoso" dated 7 July 2025. Copper Aluminium Zinc-lead-silver Nickel(b) Alumina SLIDE 8
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Demand for most of our commodities is expected to rise through the energy transition A PORTFOLIO FOR THE ENERGY TRANSITION Accelerated Transition(b) Fragmented Transition(b) Primary demand Primary demand Risks and opportunities Aluminium value chain ▲ ▲ ▲ ■ Increasing demand associated with renewable energy infrastructure and EVs ■ Possible substitute for plastics in packaging and other applications ■ Recycling improvements Copper ▲ ▲ ■ Increasing demand in electricity-related technologies and rising EV adoption ■ Recycling improvements Zinc ▲ ▲ ▲ ▲ ■ Higher zinc galvanisation for renewable energy and climate-resilient construction ■ Limited recycling growth due to carbon intensity compared to primary production ■ Downstream zinc processing exposed to higher carbon prices Lead ▼ ▼ ■ Lead-acid batteries widely used in automative systems and critical infrastructure ■ Primary demand expected to decline as conventional vehicles are phased out Manganese ▲ - ■ Widely used in renewables and EVs to improve the quality and strength of steel ■ Limited recycling due to economic and technical constraints ■ Decarbonisation pressures may increase demand for alternatives to steel ▲ Positive ▼ Negative ■ Risk■ Opportunity- Neutral Future modelled primary demand, by scenario1,(a) SLIDE 9 Notes: a. Triangles illustrate CAGR estimates for modelled commodity demand (2025 to 2040) under each scenario, assuming no action is t aken to mitigate potential risks. Estimates of demand change are based on scenario -specific assumptions (see slide 25) and are subject to uncertainty. The transition scenarios may evolve differently than shown, leading to materially different demand impacts. b. Accelerated Transition scenario is based on a 1.5°C temperature rise (2100) and Fragmented Transition scenario is based on a 2.8 °C temperature rise (2100).
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Directing 100% of our capital expenditure towards transition materials(a) A PORTFOLIO FOR THE ENERGY TRANSITION 0 200 400 600 800 1,000 1,200 1,400 1,600 FY22 FY23 FY24 FY25 FY26e Aluminium value chain Base metals Manganese ore Metallurgical coal South32 Group capital expenditure(b) (US$M) SLIDE 10 Acquired and commenced construction of Hermosa’s Taylor zinc-lead-silver project Acquired 45% interest in the Sierra Gorda copper mine Sold IMC, unlocking value and capital to invest in base metals Progressing a pipeline of base metals growth options Notes: a. CA100+ Net Zero Standard for Diversified Mining, defines transition materials into two categories which include Key Transitio n Materials (KTMs) and Other Transition Materials (OTMs). KTMs include lithium, copper, nickel, cobalt for example, while OTMs include aluminium, alumina and bauxite, silver, zinc, manganese and lead for example (both lists are not exhaustive). b. Excludes Group and unallocated capital expenditure.
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OUR CAPITAL MANAGEMENT FRAMEWORK Maintain safe and reliable operations and an investment grade credit rating through the cycle Competition for excess capital Distribute a minimum 40% of Underlying earnings as ordinary dividends Cash flow priorities Maximise cash flow ROIC Our capital management framework considers investments and strategic decisions, including those designed to support our Climate Change Action Plan Portfolio improvements • Acquired a 45% interest in Sierra Gorda, adding copper to our portfolio • Acquired, studied and approved Hermosa’s Taylor zinc-lead-silver project • Progressing a pipeline of base metals options in study and exploration phases Decarbonisation expenditure • Capital expenditure during our CCAP 2022 (FY23 to FY25) was US$71M, including implementing AP3XLE at our Southern African smelters and energy transition projects at Worsley Alumina • Developing on-balance-sheet renewables, firming capacity and associated infrastructure falls outside our strategy and core capabilities • Some projects will be assessed within safe and reliable capital, for example if related to mitigating physical risks of climate change or compliance with regulatory requirements • Past examples include our investment in water infrastructure and energy efficiency projects SLIDE 11
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ADDRESSING EMISSIONS AND STRENGTHENING RESILIENCE
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0 5 10 15 20 25 FY22 FY23 FY24 FY25 Operational emissions (Mt CO2-e) Worsley AluminaHillside Aluminium Mozal Aluminium Other 22.0 21.7 20.3 20.7 Notes: a. Aluminium produced in a process that results in less than 4t CO2 -e Scope 1 and Scope 2 GHG emissions per tonne of aluminium. b. Based on our assessment of potential future operational emissions intensity using the Skarn Zinc Mine GHG and Energy Intensit y Curve Generator (v1.0 May 2025). Operational emissions are concentrated in our aluminium value chain OUR OPERATIONAL EMISSIONS Hillside Aluminium 58% • Energy efficient smelter operating at technical capacity • Fourth quartile emissions intensity due to electricity from Eskom grid Worsley Alumina 16% • First quartile of emissions intensity curve, benefitting from higher quality bauxite • Fuel switching as an interim step, with full electrification in the long-term Mozal Aluminium 17% • Historically low-carbon aluminium(a) with electricity from hydro-power • Drought conditions resulted in significant Eskom back-up electricity in FY25 Other 9% • Base metals operations have materially lower emissions intensity • Taylor has the potential to be among the lowest intensity zinc mines globally(b) SLIDE 13
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OUR PREFERRED PATHWAY TO ACHIEVE OUR FY35 TARGET Our target to halve our net operational emissions by FY35(a) requires multi-stakeholder support to secure large-scale, reliable and affordable low-carbon electricity for Hillside Aluminium Notes: a. Relative to our FY21 baseline. b. Our preferred pathway excludes emissions associated with exploration and development projects that have not yet reached final investment decision. SLIDE 14 (b)
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Scope 1 Scope 2 Scope 1 + 2 HILLSIDE ALUMINIUM Working to secure large-scale, reliable and affordable low-carbon electricity • A comprehensive solution is required to enable a blended tariff that combines large-scale renewable energy with firming capacity • Continue to engage with Eskom and other government stakeholders with the aim to establish an affordable, low-carbon electricity solution Next steps • Relined 57% of the smelter’s pots using AP3XLE technology, delivering further gains in energy efficiency • Continued to work with the South African government, Eskom and other potential partners to identify options to secure low-carbon electricity • Investigated off-site renewable options, which highlighted challenges such as substantial, high-cost firming capacity required to ensure reliable energy supply • Explored nuclear energy attributes to reduce potential carbon tariff exposure Progress and learnings since our 2022 CCAP Hillside FY25 operational emissions (Mt C02-e) 12% 12.0Mt CO2-e SLIDE 15 88% An efficient smelter operating at technical capacity Electricity from carbon-intensive Eskom grid
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WORSLEY ALUMINA • Progress studies to convert remaining coal-fired boilers to natural gas, considering developments in the WA energy sector and just transition planning for Collie • Progress steam electrification studies and technology pathways to support the electrification of steam generation and calcination • Engage proactively with Western Power and industry on options for increasing renewable transmission capacity to the refinery • Maintain our annual process to identify high-potential energy and process efficiency initiatives for further evaluation • Converted two of five coal-fired boilers to natural gas as an interim step, supporting an ~12% decrease in operational emissions from FY21 levels • Concept study identified full electrification as the refinery’s long-term decarbonisation path, subject to renewable energy access, technology commercialisation and SWIS (b) infrastructure upgrades • Progressed study work on efficiency projects, however technical constraints and commercial viability concerns have impacted some projects Fuel switching as an interim step while we progress our steam electrification study Next steps Progress and learnings since our 2022 CCAP SLIDE 16 Operational emissions (average)(a) ~75% ~20% Notes: a. Remaining 5% of operational emissions includes emissions from diesel consumption, Scope 2 emissions and other immaterial emis sions sources. b. South-West Interconnected System. Decarbonisation pathways Operational emissions sources Gas, coal and biomass Alumina Steam for Bayer process Calcination ↓ ↓ Coal to gas boiler conversion as an interim step Steam electrification and renewables Low-carbon calcination
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OUR SCOPE 3 EMISSIONS Portfolio reshaping has reduced our transition risk and contributed to an ~80% reduction in Scope 3 emissions 116.5 54.2 22.7 FY19 FY24 Cat 11: Sale of IMC Cat 10 : Alumina Cat 10: Manganese Cat 1: Emissions factors FY25 Scope 3 emissions FY19 to FY25 (Mt C02-e) Exited SAEC, TEMCO and Metalloys, and enhanced calculation methodology FY25 Scope 3 emissions by position in our value chain (excludes IMC) (a) (b) Notes: a. Improved tracking of alumina sales and updated emission factors from the global average factor to country - or asset-specific emission factors. b. Lower sales volumes at Australia Manganese, alongside the adoption of the latest global average emission intensity for proces sing of manganese ore. c. We have upgraded spend-based emission factors with supplier-specific and global-average product emission factors for several emis sions-intensive purchased goods. Upstream (24%) Downstream (76%) 61% 7% 2% 30% Alumina Aluminium Copper Manganese Processing of sold products ■ Purchased goods and services (including capital goods) ■ Fuel and energy-related activities ■ Upstream transportation and distribution ■ Downstream transportation and distribution ■ Processing of sold products ■ Investments (c) SLIDE 17
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Risk management • Incorporate climate-related skills and expertise into our risk management processes RESILIENCE TO CLIMATE IMPACTS Strengthening our capabilities to adapt and respond to physical climate change impacts through five key initiatives SLIDE 18 1 . 2 . 3 4 5 Present-day resilience Future resilience Enhance weather and climate forecasting Integrate physical risk insights into our insurance program Embed adaption into key business processes Share climate risk insights to help strengthen community resilience
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Effective responses to climate change must address sustainability-related risks and opportunities SUPPORTING A JUST TRANSITION • Continuing to deliver our economic development and social investment plans • Implementing the community-related components of our Climate Adaption and Resilience Plan • Engaging with stakeholders to secure a comprehensive low-carbon energy solution for Hillside Aluminium and on issues related to a just energy transition in South Africa • Continuing to participate in the Collie Just Transition Working Group led by the Western Australian Government SLIDE 19 Multi-stakeholder collaboration Net zero pathways Governance and transparency Community resilience Workforce evolution Our just transition guiding principles Embedding these principles into our approach
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SUMMARY Repositioned our portfolio and lowered transition risk SLIDE 20 Advancing low-carbon solutions through stakeholder collaboration Growing our base metals production Strengthening resilience to physical climate impacts Committed to reporting our progress Addressing the risks and opportunities of climate change has been central to our strategy since day one
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Q&A We will now be opening the session up to questions If you would like to ask a question please pause the broadcast and click the link for audio questions Note that there may be a short delay in switching between the broadcast and audio platforms If you experience any problems then please disconnect the audio line, return to the video broadcast and submit your questions via the textbox For more information please refer to our 2025 Annual Reporting Suite Climate Change Action Plan Annual Report Climate-related Risk and Reporting Methodology Sustainability Databook Sustainability Standards and Frameworks Index SLIDE 21
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SUPPLEMENTARY INFORMATION
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TRANSITION RISK KEY SCENARIO ASSUMPTIONS AND INPUTS SLIDE 23 Accelerated Transition Fragmented Transition Temperature (2100) 1.5°C 2.8°C Global CO2 emissions Global CO2 emissions (including non-energy sources) fall below zero by 2050 (i.e. net-negative). Global CO2 emissions decline but do not achieve net zero by 2050. Global explicit carbon price (real Jan 2025) US$200/tCO2 by 2040 increasing to US$253/tCO2 by 2050, based on a combined influence of abatement cost and policy. US$68/tCO2 from FY40 onwards. Policy Immediate policy action and international cooperation to scale decarbonisation technologies with large-scale investments (including in emerging economies). Ad hoc and uncoordinated international cooperation, with climate policies becoming more ambitious and effective over time. Geopolitical tensions and protectionist policies prevail. Energy Final energy consumption declines modestly over time, supported by uptake of low emissions technologies across key sectors and improved energy efficiency. Final energy consumption continues to rise, with energy efficiency improvements and uptake of low emissions technologies occurring at a slower rate. Electricity Share of electricity in final energy consumption doubles by 2050, exceeding 50%. Electricity share rises, but more gradually, with a slower transition away from fossil fuels. Power generation Near complete decarbonisation by 2050 and almost tripling of power generation growth. Solar and wind account for nearly 39% of total power generation in 2030, and 80% by 2050. Solar and wind generation increases, but at a moderated pace aligned with existing energy and climate policy action. Electric Vehicles (EVs) Rapid EV adoption, 100% (79 million units) by mid-2030s. Shared mobility substitutes some private car ownership. Slower EV penetration due to weaker policy, infrastructure limitations and regional disparities in affordability and access.
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SLIDE 24 FOOTNOTES 1. We use transition risk scenario analysis to stress test how different market and policy environments may affect our portfolio across a range of plausible climate futures. A scenario consists of a set of assumptions narrating a pathway towards a particular outcome. It is not intended as a forecast, but rather a tool to enhance critical thinking by highlighting elements of potential pathways and outcomes. This approach enables us to identify risks and opportunities, assess strategy and business model resilience, and inform mitigation actions, strategic planning and investment decisions. The denotation (e) refers to an estimate or forecast year. •The following abbreviations have been used throughout this presentation: equity accounted investment (EAI); environmental, social and governance (ESG); electric vehicle (EV); financial year (FY); greenhouse gas (GHG); International Financial Reporting Standards (IFRS); million (M) and United States (US).