ENGLISH ADVANCING TR ADE TRAFIGURA GROUP CORPORATE BROCHURE

Transcription

1 ENGLISH ADVANCING TR ADE TRAFIGURA GROUP CORPORATE BROCHURE

2 BUSINESS HIGHLIGHTS * $97.2bn198.4mmt** $39.1bn Group revenue Combined volume of commodities traded Total assets 67%146.3mmt $46.9bn+ Oil and Petroleum Products revenue as a percentage of Group income Oil and Petroleum Products total volume traded Financial lines available to Trafigura 33%12.8mmt 2,744 Metals and Minerals revenue as a percentage of Group income Metals total volume traded Shipping and chartering fixtures per year 39.3mmt5,248 Minerals total volume traded Average number of employees over the year * Trafigura s financial year runs from 1 October 2014 to 30 September ** Million metric tonnes.

3 ADVANCING TR ADE OVERVIEW Trafigura is one of the world s leading independent commodity trading and logistics houses. Every day, around the world, Trafigura is advancing trade. We are developing markets, investing in infrastructure, building connections and cementing alliances. We see global trade as a positive force and we go further to make trade work better. Whether you re a producer, an existing partner or an end-user, our focus, commitment and global resources can get you closer to your markets. In these pages we set out what we do and how we can add value for your business. CONTENTS Overview 02 Trafigura at a glance 04 How we re advancing trade around the world 10 Business model and structure Performance capabilities 12 Oil and Petroleum Products Trading 18 Metals and Minerals Trading 22 Shipping and Chartering 24 Puma Energy 26 DT Group 28 Impala Terminals 32 Mining Group Corporate responsibility 36 Investing in responsible trade 38 Trafigura Foundation TRAFIGURA CORPORATE BROCHURE 01

4 OVERVIEW TRAFIGURA AT A GLANCE Trafigura s core business is physical trading and logistics; our assets and investments complement and enhance these activities. Trafigura is managed through a global network of companies with central hubs and regional offices. TRADING ACTIVITIES Oil and Petroleum Products We are one of the world s largest traders by volume of oil and petroleum products. We operate in a fragmented market where no single company has a leading position. Trafigura is one of the few oil and petroleum products traders with global presence and comprehensive coverage of all major markets. Supported by offices worldwide, our Oil and Petroleum Products Division operates from regional offices in Beijing, Calgary, Geneva, Houston, Johannesburg, Mexico City, Montevideo, Moscow, Mumbai and Singapore. Metals and Minerals We are one of the world s largest metals and minerals traders. We negotiate offtake agreements with miners and smelters and invest in logistics through our subsidiary, Impala Terminals, to improve market access for our clients. Supported by offices worldwide, our Metals and Minerals Division operates from regional offices in Geneva, Johannesburg, Lima, Mexico City, Montevideo, Mumbai, Shanghai, Singapore and Stamford mmt Oil and Petroleum Products volume traded 52.1mmt Metals and Minerals volume traded DIVISIONAL PERFORMANCE DIVISIONAL PERFORMANCE Oil and Petroleum Products volume traded (mmt) Shipping and Chartering* Our Shipping and Chartering desk is closely integrated into Trafigura s business model, providing freight services to the commodity trading teams internally and trading freight externally for third parties. Operations are based in regional offices in Athens, Geneva, Houston, Montevideo and Singapore. All post-fixture operations are managed from our Athens office Metals and Minerals volume traded (mmt) 2,744 Shipping and Chartering fixtures * Financials relevant to Shipping and Chartering are consolidated within Oil and Petroleum Products/Metals and Minerals trading activities. Metals Minerals 02 TRAFIGURA CORPORATE BROCHURE

5 INDUSTRIAL AND FINANCIAL INVESTMENTS OVERVIEW DT Group DT Group is a joint venture between Trafigura and Cochan Ltd. It develops markets in sub-saharan Africa, with a particular focus on Angola. It works closely with international and local partners in the logistics, trading and natural resources sectors. Impala Terminals Impala Terminals is a multimodal logistics provider focused on export-driven emerging markets. It owns and operates ports, port terminals, warehouses and transport assets. It has particular expertise in providing efficient logistic solutions in challenging environments. Mining Group The Mining Group manages mining operations, develops projects, conducts technical audits of existing and potential partner projects and provides advisory and support services to Trafigura s trading desks, trading partners and Galena Asset Management. Galena Asset Management Galena Asset Management provides investors with specialised alternative investment solutions through its range of commodity funds. It operates independently, but benefits from the Group s insights into the global supply and demand of commodities. Puma Energy** Trafigura is a 48.8 percent shareholder in Puma Energy, a global oil and petroleum products distribution company. The company manages over 18 million m 3 throughput volumes of oil products via its network of 89 bulk storage terminals, 53 airports and over 2,250 service stations. 50% 100% 100% 100% 48.8% ownership ownership ownership ownership ownership 151 1,794 1, ,500+ employees* employees employees years in operation employees REGIONAL INFORMATION NORTH AMERICA EUROPE MIDDLE EAST ASIA & AUSTRALIA 5 Offices 246 Employees 14 Offices 1,252 Employees 3 Offices 22 Employees 13 Offices 948 Employees LATIN AMERICA 29 Offices 2,199 Employees AFRICA 11 Offices 581 Employees * All employee numbers represent average annual totals. ** Puma Energy was deconsolidated at the end of the 2013 financial year at which point Trafigura ceased to control Puma Energy. l Regional & Hub offices. TRAFIGURA CORPORATE BROCHURE 03

6 OVERVIEW HOW WE RE ADVANCING TR ADE AROUND THE WORLD Trafigura helps make trade happen. We move physical commodities from where they are plentiful to where they are most needed reliably, efficiently and responsibly. We are one of the world s leading trading firms. We have built a global business on service and performance. 04 TRAFIGURA CORPORATE BROCHURE

7 OVERVIEW Advancing trade by OPTIMISING PHYSICAL TR ADING AND LOGISTICS Colombia Connecting counterparties reliably, efficiently and responsibly. We have built a global business in pursuit of one basic task making trade flow better. We approach it single-mindedly, bringing all our energy and resources to bear. We source, store, blend and deliver commodities according to precise customer specifications. We manage diverse risks and complex operational issues. We deploy market knowledge, industry expertise and world-class infrastructure. Our trading teams have the agility, intellect and ambition to succeed in increasingly regulated markets. Switzerland Advancing trade GLOBALLY AND AT SCALE At scale, across the world we re at the heart of the global economy. Trafigura is active in 37 countries on six continents. Our global network supports our trading activities. Each of our offices has access to the knowledge, resources and support of the Trafigura Group. We continually invest in systems and processes that equip us to operate effectively in complex markets. Customers for oil and petroleum products include electric utilities, refiners, major producers and state-owned oil companies. Metals and minerals customers range from mining companies to smelters, refined metals retailers and industrial manufacturers. TRAFIGURA CORPORATE BROCHURE 05

8 OVERVIEW Advancing trade with INTEGRATED SOLUTIONS US Simple, cost-effective and tailored to your needs. Our services add value at every stage of the supply chain. We access hard-to-reach locations and offer technical advice and financial support. We build infrastructure and devise logistics to streamline and simplify transportation. We operate at scale through state-of-the-art terminals. We deliver on time, on-spec commodities wherever they are needed. Singapore Advancing trade with FINANCIAL STRENGTH AND RESILIENCE A trading partner you can rely on, even in the toughest times. Trafigura raises funds in the US, Europe and Asia-Pacific, and has lending arrangements in place at 126 banks. Our strong balance sheet generates economies of scale, supports infrastructure investment and gives us scope to support production with prepayment agreements. Our prudent approach to risk management unlocks access in volatile markets. 06 TRAFIGURA CORPORATE BROCHURE

9 OVERVIEW Advancing trade by INVESTING IN INFR ASTRUCTURE Brazil Strategically located infrastructure gets you closer to global markets. We invest in ports, terminals and logistics to enhance our physical trading activities. We build warehouses and storage facilities, operate truck and barge fleets, purchase and charter ships, and develop mines whatever it takes to make trade flow better. Impala Terminals moves coal along the Mississippi, transports oil from Colombia s heartland, concentrates from Mexico and Peru, and iron ore out of Brazil. Our midstream and downstream energy partner, Puma Energy, manages storage and import terminals on five continents. US Advancing trade by STRENGTHENING SUPPLY CHAINS Reducing trading costs and extending services. Trafigura has built a global presence by challenging the status quo. We operate in fluid, fast-changing markets. To succeed, we need to stay agile and responsive. Sustained success depends on consistently delivering leading-edge services. We never stop investing in innovation. We develop trade routes and product categories. We improve logistics. We introduce new counterparties to global opportunities and strengthen connections between suppliers and end-users. TRAFIGURA CORPORATE BROCHURE 07

10 OVERVIEW Advancing trade with ENDURING CUSTOMER RELATIONSHIPS Bahamas Aligning our resources with your long-term priorities. Trafigura is privately owned and fully independent. We relish that status. It keeps us focused on what our customers want. We work to develop strong, self-sustaining relationships with our customers. We do that by understanding and then meeting their needs. As a Trafigura customer you have a commercial partner that prioritises your interests. We don t just focus on the deal, we configure our business to fit your changing trading requirements. Tanzania Advancing trade with STRATEGIC PARTNERSHIPS Strong relationships are built on firm foundations. Strategic alliances with carefully selected partners extend the scope of our activities. Financial partners invest alongside us. Industrial partners contribute valuable, complementary skills and resources. We are making more progress alongside our partners. We are buying and building terminals, storage, and productive and processing capacity. We are integrating assets, boosting performance and realising gains. 08 TRAFIGURA CORPORATE BROCHURE

11 OVERVIEW Advancing trade by PROMOTING TR ANSPARENCY India Driving performance and stakeholder engagement. We believe that transparency comes in many forms from being open about financial performance, to driving deeper stakeholder engagement, to improving monitoring and reporting within the organisation and across our supply chain. As a major facilitator of global trade, we also believe that natural resource wealth should be an important engine for economic growth that contributes to sustainable development and poverty reduction. Being open about how we manage natural resources gives the populations in countries where we operate the tools to hold governments and business to account. Zambia Advancing trade SUSTAINABLY Generating lasting shared value with local communities. Trust is the most precious commodity. It has to be earned one day at a time. We consult regularly with local communities. We work hard to gain and sustain their confidence. This is the right way to do business and it makes commercial sense. Our social licence to operate is reliant on local goodwill. Maintaining high safety and environmental standards is a prerequisite. We put down roots wherever we operate. We work closely with host governments, project partners and local communities to ensure that the benefits of trade are shared. TRAFIGURA CORPORATE BROCHURE 09

12 BUSINESS MODEL AND STRUCTURE OUR BUSINESS MODEL CREATES VALUE Our vision is of an increasingly interconnected and prosperous world in which commodities pass seamlessly from their points of origin to points of need. WHAT WE DO We connect producers and end-users of commodities by performing transformations in space, time and form. We use our market knowledge, logistics and infrastructure to move physical commodities from places where they are abundant to where they are in demand. Transformations in space, time and form SOURCE STORE BLEND DELIVER We negotiate offtake agreements with oil producers, refiners, mining companies and smelters. We invest in logistics that improve market access for our suppliers. We store petroleum products at owned and third-party tankage. We store metals and minerals at Impala Terminals and third-partyowned facilities. We blend physical commodities to regional, market and customer specifications in strategically located terminals and warehouses around the world. We operate efficient, safe and high-quality logistics. We move commodities by barge, truck, rail, pipeline and vessel in support of our core trading activities and for third parties. RELIABLY We take a long-term perspective. We act as partner to nations, corporations and communities. We earn their trust and build sustained shared value. EFFICIENTLY We build infrastructure and develop logistics to streamline and simplify transportation. Operating at scale, we deliver on time, on-spec commodities wherever they are needed. RESPONSIBLY Health, safety, environmental and community (HSEC) concerns guide our planning and dictate decision making. Our robust approach to risk management lowers the risk of participating in commodity markets. ADVANCING TRADE: HOW WE CREATE VALUE BY MAKING MARKETS WORK We use our global network and market intelligence to connect supply and demand for commodities at the best prices and ensure delivery in the right place, at the right time, to the right specification. BY OPTIMISING THE SUPPLY CHAIN We have developed leading logistical capabilities enabling us to source, store, blend and deliver oil and petroleum products, metals and minerals reliably and efficiently anywhere in the world. BY MANAGING RISK Our business model is resilient in the most volatile market conditions. We systematically hedge price risks and have created systems and processes that enable us to manage a complex range of operational and financial risks. BY INVESTING IN INFRASTRUCTURE We have invested in high-quality infrastructure that supports our trade flows, such as oil storage facilities, warehouses, ports and transport. BY SUPPORTING OUR CLIENTS Our strong financial resources give us the capacity to add value for our customers through integrated solutions incorporating trading, finance, infrastructure investment and risk management in the physical commodity sector. BY SUSTAINING MARKETS We aim to conduct our activities in a way that benefits local communities and society at large. Responsible trade drives economic and social progress. 10 TRAFIGURA CORPORATE BROCHURE

13 OUR STRUCTURE DELIVERS VALUE OVERVIEW Trafigura s core business is physical trading and logistics. Strategic investments in industrial and financial assets complement and enhance this activity. We structure these investments as standalone businesses.* TRADING ACTIVITIES Time charter Voyage charter WET Owned vessels FREIGHT Owned mines MINING GROUP Technical advisory Voyage charter Midstream Downstream PUMA ENERGY OIL AND METALS PETROLEUM AND PRODUCTS MINERALS TRADING TRADING FREIGHT DRY Time charter Trading Shipping Infrastructure GROUP DT Investments logistics Multimodal IMPALA TER MINALS Transport assets Ports and terminals * The size of each segment is not indicative of percentage of ownership or contribution to Trafigura s bottom line. ** Puma Energy is a separate company to Trafigura, percent of its share capital is owned by Trafigura. TRAFIGURA CORPORATE BROCHURE 11

14 PERFORMANCE CAPABILITIES OIL AND PETROLEUM PRODUCTS TR ADING Trafigura is one of the world s largest independent traders of oil and petroleum products, handling more than 3 million barrels a day. It is one of the few independent energy traders with a global presence and comprehensive product coverage, as well as extensive logistical and storage capability around the world. Global trading teams based in Beijing, Calgary, Geneva, Houston, Montevideo, Moscow and Singapore are supported by offices in Johannesburg, Mexico City and Mumbai mmt 67% Total volume traded Contribution to global revenue Oil and Petroleum Products total volume traded (mmt) Trafigura has the inherent strengths and the agility to respond effectively to fast-changing markets. We invest in world-class assets and logistics to streamline and simplify physical delivery. SERVICE AND PERFORMANCE As a global trading house we have a detailed overview of macro and micro trends. As physical traders, we experience economic fundamentals first hand. Oil and petroleum products markets are becoming more regulated and more transparent. The heightened volatility, lower prices and contango price structures we saw in 2015 presented new trading opportunities and sharpened the demand for excellent logistical and risk management services. Trafigura has the inherent strengths and the agility to respond effectively to fast-changing markets. We invest in world-class assets and logistics to streamline and simplify physical delivery. Our integrated, global trading desks focus on delivering relevant, distinctive and innovative services and outstanding performance. CRUDE In the crude oil market, we use our global presence, market knowledge and logistics capabilities to balance supply and demand, optimise supply chains and service the needs of our customers around the world. Globally, we store and transport over one and a half million barrels of crude daily. Trafigura s crude team has strong technical capabilities. This, combined with our deep understanding of physical flows, allows us to respond rapidly to changing market dynamics and non-standard crude oil opportunities. We source oil from a variety of counterparties including public production companies, oil majors and national oil companies (NOCs). We also provide distribution solutions for producers, and assist refineries by supplying tailored shipments and specialist financing. We have a substantial North American business with a longstanding blending hub in Louisiana and a logistics-based offering in Texas. Our extensive US domestic lease activity in the Eagle Ford Shale and the Permian regions continues to expand. Our thriving business in Africa encompasses both significant exports and imports. In Asia, we are an active participant in both sweet and sour grade trading. We continue to grow our assets in the region. We control tankage at strategic locations in Europe and supplement this with short- and long-term leases. We have access to long-term supplies of tradable oil streams and excellent relationships with regional refiners. 12 TRAFIGURA CORPORATE BROCHURE

15 PERFORMANCE CAPABILITIES Medium-range oil vessel, Bahamas. GASOLINE The gasoline team manages one of the world s largest seaborne gasoline books. We have an active market presence in components and extensive, strategically located tankage. We source, store, blend and deliver cost-effective gasoline solutions to our customers around the world, emphasising great service and optimal performance. We have built up key long-standing relationships with NOCs, major refiners, and downstream partners in every core trading region. We maintain major blending hubs on the Gulf Coast, in the Mediterranean and Singapore and lease tankage globally. We have a considerable ocean-bound charter fleet and are active in the pipeline trade. These assets give us the capacity to respond to our customers with considerable flexibility. Our integrated offering in the Americas is built on strong relationships with US refiners and substantial storage capacity in the Gulf and Caribbean basin. We have some significant customers in Mexico, Colombia and Brazil and we supply fuel to Puma Energy s extensive distribution network in Central America. FUEL OIL Our fuel oil trading team combines global presence, market knowledge and efficient logistics to connect producers and end-users. We serve the needs of our customers by blending in and shipping between our 14-million barrel global network of leased and owned storage facilities in Rotterdam, Singapore, Fujairah, Panama and Houston. Our trading and operations teams work closely with customers to bring value to the supply chain. Together with our team of analysts we are positioning ourselves to capture opportunities in changing market conditions. MIDDLE DISTILLATES Middle distillates are traded in integrated global markets. Trafigura s network operates from desks in Singapore, Geneva and Houston, managing flows between refining and export centres in the US, Middle East and Asia and the diesel import markets of Africa and Europe. Our mid-distillates trading operation covers jet fuel, diesel and gas oil. It leases storage globally and uses tankage to blend products to local specifications and premium-priced fuels. We trade the full range of distillates, from low to high sulphur. NAPHTHA Trafigura is one of the world s most active naphtha traders and one of the few with a US export facility. We source, store and blend all the most actively demanded products and grades, supporting trade flows to the Far East, South America, Africa and Europe. Our naphtha teams operate in Singapore, Geneva and Houston with local offices managing origination and business development. We work with colleagues in Dubai, Montevideo, Puerto Rico and West Africa. We focus on long-term relationships and work with our customers to meet changing needs. Our broad product coverage allows us to take advantage of naphtha s high substitutability. The naphtha teams work closely with the gasoline and LPG desks to assess relative pricing for different products and grades. TRAFIGURA CORPORATE BROCHURE 13

16 The Golar Ice (left), chartered by Trafigura, supplying LNG cargo to a Floating Storage and Regasification Unit (FSRU) off the coast of Egypt. CONDENSATE Trafigura is the largest condensate trader globally and the only independent trading company with a dedicated condensate desk. We trade in all parts of the world, bringing to market a wide variety of grades. We use terminals in the Arabic Gulf, the Baltic region and the Far East for blending, and building or breaking bulk. We have offtake agreements with numerous oil and gas producers. We are developing new uses for condensates with a diverse customer base that includes refineries, splitters and petrochemical facilities. LIQUEFIED PETROLEUM GAS (LPG) Trafigura is a leading trader in the rapidly evolving LPG market. The US is consolidating its position as the world s biggest LPG exporter. Trafigura is a producer, shareholder and has exclusive throughput rights at the Buckeye Partners terminal hub (a 1.1 million barrel storage, production and export facility in Corpus Christi, Texas). Our global presence and very strong logistical system support our trading activities. Effective vessel rotations, high-traded volumes, and rapid decision making allow us to prioritise clients requirements and respond quickly to changing market conditions. As an LPG producer and controlling our own storage facilities we are able to tailor cargo specifications to suit a wide range of customers, from petrochemical consumers and blenders to autogas and bottled gas consumers. In addition to our facility in South Texas we work closely with our industrial investment, Puma Energy, who own and operate LPG storage and distribution networks in strategic locations throughout the world. Working alongside our traders we have a specialised team of LPG operations and chartering professionals who manage a large and rapidly evolving fleet of LPG tankers, ranging from small pressurised up to Very Large Gas Carriers (VLGCs). LIQUEFIED NATURAL GAS (LNG) Trafigura is the world s leading independent trader in this rapidly growing energy market. The LNG team is based in Geneva, Singapore and Houston. It works closely with our regional offices as well as our natural gas and coal desks. Trafigura s LNG trading activity is well diversified globally with a focus on Latin America, Europe, Middle East, Africa and Asia. In spite of weak growth over the past few years, the LNG industry has been undergoing a liquidity revolution allowing independent traders to increasingly add value. In part, this is due to the uncertainty of new supply and the emergence of new buyers. Our strategy is to maintain profitable volume growth, to provide innovative and flexible products to our clients and to invest opportunistically in infrastructure where we can add value. BIODIESEL We are committed to promoting biodiesel as a sustainable alternative to fossil fuel-based diesel and are active on all the major international trade routes. Our biodiesel desk manages a significant proportion of the traded volumes in this complex market. The biodiesel desk is fully integrated within our global distillates team. We source supplies globally, both directly from agribusinesses and through the professional markets. We have built strategic partnerships with producers in the Americas, Europe and Asia. We have the ability to blend, store and transport biodiesel and ethanol anywhere in the world. Our customers include oil majors, refineries and downstream suppliers. 14 TRAFIGURA CORPORATE BROCHURE

17 PERFORMANCE CAPABILITIES LPG vessel at Corpus Christi terminal, Texas, US. TRAFIGURA CORPORATE BROCHURE 15

18 CORPUS CHRISTI: TERMINAL AND CONDENSATE SPLITTER STRATEGY EXTENDING OPTIONALITY BY INVESTING IN INFR ASTRUCTURE 16 TRAFIGURA CORPORATE BROCHURE

19 IMPLEMENTATION OUR JOINT VENTURE WITH BUCKEYE POSITIONS US TO TAKE ADVANTAGE OF CHANGING MARKET CONDITIONS IN US OIL AND PETROLEUM MARKETS PERFORMANCE CAPABILITIES In 2014, we sold a controlling stake of our Corpus Christi terminal complex to Buckeye Texas Partners (BTP). Buckeye Partners now owns 80 percent of this joint venture; we retain a 20 percent equity interest. The sale released USD860 million for reinvestment in other business activities. Strategically, we have retained exclusive commercial rights to use the terminal. BTP s vertically integrated system of midstream assets is strategically located on the Gulf Coast, in Corpus Christi, Texas, close to Eagle Ford production, one of the most prolific and economically advantageous shale plays in the US. The terminal has 6 million barrels of tankage for varied energy products, including crude oil, LPG, distillate and naphtha. There is pipeline connectivity to Eagle Ford and a deep-draft marine terminal that accommodates ocean-going vessels. It also includes one of the largest refrigerated LPG storage facilities in the US. In 2015, BTP commissioned a state-of-the-art condensate splitter. This 50,000 barrel per day processing facility is the second standalone splitter to be completed in the US and gives us the ability to refine crude and condensate locally and export the products globally. Energy markets are volatile and highly cyclical. To operate successfully across the cycle we need to maintain significant flexibility in our trading portfolio. This thinking underpinned Trafigura s initial investment in the Corpus Christi terminal. By retaining our rights to make use of this infrastructure we have maintained our optionality to transport crude oil or products to the best available home. In addition, we secured a reliable partner and operator with strong safety credentials and extensive experience. Buckeye Partners LP has been a specialist in this sector for over a century. Our partnership with Buckeye connects us with a company that operates well over 100 terminals in the US. Being aligned with such a business will enhance our ability to move into new US markets quickly when opportunities arise. 6m Barrel storage capacity 50,000bpd Capacity condensate splitter Trafigura and Buckeye Partners LP s new condensate splitter at Corpus Christi Facility, Texas, US. Main image: New condensate splitter and refrigerated LPG storage units at Corpus Christi Facility, Texas, US. TRAFIGURA CORPORATE BROCHURE 17

20 PERFORMANCE CAPABILITIES METALS AND MINERALS TRADING Trafigura is one of the world s largest metals and minerals traders. We are building global connectivity between miners, smelters and refined metal fabricators. Global trading teams are based in Geneva, Montevideo, Singapore and Stamford and supported by offices in Johannesburg, Lima, Mexico City, Mumbai and Shanghai. 33% 52.1mmt Contribution to global revenue Total volume traded Metals and Minerals total volume traded (mmt) Metals Minerals Trafigura is investing for the long term together with our strategic financial partners. By growing traded volumes we stand to benefit from increasing economies of scale. We are scaling up our business where we can STRATEGIC PARTNERSHIPS AND ECONOMIES OF SCALE Slower Chinese growth and the managed transition from export-led manufacturing towards domestic consumption and services has had a big knock-on effect, with the inevitable deep reductions in demand for international metals and minerals. Simultaneously, regulators worldwide are tightening controls as they seek to tackle climate change and cap emissions. These factors make for difficult short-term trading conditions, but there will also be value-based investment opportunities for committed market participants. Trafigura is investing for the long term together with our strategic financial partners. By growing traded volumes we stand to benefit from increasing economies of scale. We are scaling up our business where we can. We are offering financial assistance to producers through offtake agreements and developing downstream outlets that underpin volume growth. We enter strategic alliances and invest in infrastructure that streamlines and simplifies supply chains. CONCENTRATES Trafigura is the market leader in copper, lead and zinc concentrates trading, and a leading alumina and nickel trader. We source copper, lead and zinc from resource-rich areas in Africa, Australia, Canada, China, Europe, Indonesia, South America and the US. Our alumina comes from refineries in Australia, Brazil, China, Europe, India and Jamaica. Our Geneva-based trading teams are supported by regional and local offices around the world. We work closely with our partners to develop long-term relationships and to guarantee a consistent, highquality service and reliable supplies. On the demand side, we are creating a more coherent supply chain for our customers using geographical and quality arbitrages. Some significant investments are furthering volume growth. Our joint venture with Mubadala of Abu Dhabi is overseeing a doubling in capacity at the MATSA concentrates mining complex in Spain. The mine links to our state-of-the-art logistics and warehousing operation at Huelva. In China, in a significant strategic partnership with Jinchuan Group, we have acquired a minority stake in a new copper smelter and signed offtake agreements covering both copper concentrates and refined metals. 18 TRAFIGURA CORPORATE BROCHURE

21 PERFORMANCE CAPABILITIES Copper cathodes, Ndola, Zambia. In lead and zinc concentrates, we are building on our market leadership by sticking to our established strategy of carefully selecting counterparties and maintaining mutually beneficial long-term relationships with suppliers and producers. We are also developing strategic partnerships with aluminium smelters, involving the sale of alumina and the purchase of aluminium. In 2015, Trafigura established a trading operation for nickel concentrates and mixed hydroxide intermediate product (MHP). This new trading desk is laying the foundations for a long-term sustainable business by growing volumes, and diversifying its geographical scope and customer base. We are already the second largest trader by volume. Through Impala Terminals, we are investing in first-class logistics and infrastructure to facilitate the safe, prompt passage of product to market. We combine our warehousing, blending and transport capabilities to aggregate base tonnage, align blends with specific import and customer requirements, and transport products to Western Europe, China, South East Asia, the US, Russia and Japan. REFINED METALS Trafigura is the world s second largest independent refined metals trader. Our refined metals department trades seven distinct commodities copper cathodes, copper blister, aluminium, lead, zinc, nickel and silver. We also trade semi-finished products such as copper wire rods and aluminium billets. The refined metals and concentrates teams collaborate closely, using a variety of tools to facilitate trading, including structured finance and tolling models. Around 40 percent of total refined metals demand is from China. Unlike many other Western metal traders, we operate through a domestic trading subsidiary in the country. We maintain a global presence. Our knowledge on the ground allows us to source metals swiftly and cost-effectively worldwide. In India, our online refined metals procurement platform, Lykos, is changing the way small- and medium-sized manufacturers buy metal. Refined metals are traditionally short term, with almost all contracts being fixed on an annual basis. Increasingly, we are negotiating multi-year contracts and building long-term trading relationships with key counterparties. IRON ORE We trade the whole spectrum of iron ore products and grades, including fine, low-grade and high-grade lump and pellet feed. Our origination teams operate in all the main exporting countries. We use our extensive international network to connect specific buyers with particular grades of stock. We deal with the major producers in key exporting countries such as Australia and Brazil as well as with smaller mining concerns in India, South Africa, Mexico and Chile. Our sales teams in China have built up strong contacts with steel mills and local trading houses. We have expanded our value proposition to global steel producers by sourcing coking coal for them through the coal desk. Impala s terminal network provides the business with an important competitive advantage. The 50-million tonne capacity Porto Sudeste export facility south of Rio de Janeiro in Brazil, jointly controlled with Mubadala, commenced operations in August The facility provides a vital international gateway for miners in the country s iron ore quadrangle. COAL We have steadily built up traded volumes in recent years to become one of only two truly global market operators. Our focus is on developing advantageous origination strategies, novel trading flows, and innovative delivery methods. We apply these approaches across the full range of thermal coal qualities, in all the major points of origin, and across all the major global sales markets. We also serve coking coal customers across the world and are growing our presence in coke and petcoke. The coal market has become more challenging in the context of weaker Chinese growth, competition from alternative energy sources, and a less favourable regulatory environment in various countries. Nevertheless, the market continues to generate opportunities for Trafigura, given our global sales network and our strength and reliability as a contractual counterparty. Our positions continue to evolve with changing trade patterns and pricing among various qualities. Our approach remains fundamentally unchanged: presenting valuable intermediation and logistics services to our clients and exercising arbitrage opportunities presented by an extensive physical trading position. TRAFIGURA CORPORATE BROCHURE 19

22 JINCHUAN GROUP: STRATEGIC PARTNER STRATEGY JOINING FORCES TO CONSOLIDATE MARKET LEADERSHIP 20 TRAFIGURA CORPORATE BROCHURE

23 IMPLEMENTATION TRAFIGURA HAS EMBARKED ON A JOINT VENTURE WITH JINCHUAN GROUP TO ACQUIRE A SHARE IN ONE OF ITS MAJOR CHINESE COPPER SMELTERS Trafigura and Jinchuan Group enjoy a healthy business relationship founded on trust and mutual respect. We have built closer ties over several years by striving for consistently excellent service. In 2015, we became a shareholder in a subsidiary of Jinchuan Group, acquiring a stake in one of China s largest standalone copper smelters, in Guangxi province. Our 30 percent shareholding is linked to a multi-year commercial agreement. Trafigura will deliver 30 percent of the new facility s concentrates and offtake 30 percent of its copper cathode production. The partnership brings together two companies with solid credentials and complementary strengths in the copper market. The new entity combines strong capabilities in metals production, raw materials sourcing, product marketing, financing, risk management and logistics. Jinchuan is China s third largest copper producer. Its heartland is in the north west of the country, from where it serves the domestic market. However, high transportation costs to and from that location, along with supply concerns about domestically produced raw materials, have constrained its business model. In 2013, it completed construction of a 400,000 tonnes per year smelting facility on China s south coast. The smelter is ideally located for cost-effective access to concentrates available from offshore suppliers. It is also perfectly positioned to sell its products to both the domestic and export markets. Trafigura s strong network of offshore concentrates suppliers will allow the joint venture to optimise its raw materials sourcing pool. Our chartering department will give it logistical economies of scale. The joint venture will also have access to our pool of international financing contacts helping bring down its overall cost of financing and diversify its financing channels. Our risk management capabilities will help it trade effectively in today s volatile markets. China currently accounts for 65 percent of Trafigura s copper concentrates sales, a proportion set to increase as growth in the global copper market is centralised in China. In securing such a renowned and strongly established long-term partner in China, Trafigura takes its metals business to the next level. With this transaction, it became the first international trading firm to make a major co-investment in a Chinese domestic smelting business. The partnership has raised our profile in the copper market and the two companies are actively discussing broader cooperation in future. 400,000t Smelting capacity per annum PERFORMANCE CAPABILITIES Inside Jinchuan Group s copper smelting facility in Fangchenggang, China. Main image: Copper electrorefining at Jinchuan Group s copper smelting facility in Fangchenggang, China. TRAFIGURA CORPORATE BROCHURE 21

24 LOGISTICS CAPABILITIES SHIPPING AND CHARTERING Trafigura Maritime Logistics fleet of owned and chartered vessels transports essential raw materials and commodities across the world s oceans. Its wet and dry freight teams operate both as service providers securing competitive and reliable freight for in-house oil, and metals and minerals traders, and as profit centres in their own right. All commercial shipping and chartering activities are managed out of Trafigura s key regional offices. All post-fixture operations, which include issuing voyage orders, completing stowage plans, negotiating with port agents and handling demurrage claims are managed centrally from our Athens office. 2,744 Shipping and Chartering fixtures per year (2014: 2,350+) 2015 Wet and Dry Freight Activity Wet Dry 95mmt Tonnage shipped (1) + 11mmt (1)(a) 32mmt (2) 2014: 60mmt (1) 2014: 33mmt (2) Number of fixtures Average time-charter fleet 1, : 1, : (3) + 9 (4) 40 (3) 2014: (3) 2014: 40 (3) (1) Includes both internal and external usage to other owners/operators. (a) Additional 11mmt includes small tankers, bitumen and gas tonnage previously not registered in (2) Includes 21mmt external customer tonnage. (3) A vessel on hire for longer than 3 months. (4) Gas related time-charters for longer than 3 months. With more than 20 years experience as the exclusive carrier of Trafigura Group cargo, we understand the importance of a reliable freight partner when moving essential raw materials and commodities. A RELIABLE PARTNER FOR OCEAN FREIGHT TRANSPORT Trafigura Maritime Logistics is a provider of ocean freight services carrying multiple commodities on various ship types and sizes worldwide. We use both time and voyage charters to adapt to our customers needs and deliver cargo reliably and efficiently. With more than 20 years experience as the exclusive carrier of Trafigura Group cargo, we understand the importance of a reliable freight partner when moving essential raw materials and commodities. CAREFUL RISK MANAGEMENT Our freight trading teams lease time-chartered vessels and negotiate spot fixings to manage physical freight positions for Trafigura and its customers. Our global presence gains us strong insights into freight and commodity market trends. We manage risk using bunker swaps and Forward Freight Agreements (FFAs). COLLABORATING WITH TRADING TEAMS Our commodity traders rely on real-time freight pricing to structure transactions for their customers. Freight specialists are often embedded in our trading teams. Our freight professionals are in constant dialogue with the various trading desks. Knowledge of traders requirements helps shape freight trading strategy and capacity planning. Trafigura s trading and freight activities also combine to extend Trafigura s service to customers. Our clients can elect to buy commodities and freight together, on Cost, Insurance and Freight (CIF) instead of Free On Board (FOB) terms. WET AND GAS FREIGHT We charter a range of tanker tonnage to meet our physical delivery requirements for the worldwide transportation of oil and petroleum products. Our wet freight desks deal in all vessel sizes, from 2,000 to 300,000 deadweight tonnes (DWT) tankers. The vessels trade in every market segment, including crude, clean, dirty, LNG and LPG. We fix vessels on spot voyage, negotiate Contracts Of Affreightments (COAs) and run a portfolio of time-charter ships with period commitments spanning 30 days to three years. We work closely with Puma Energy, especially in Africa and Latin America, to manage delivery schedules and optimise fleet utilisation. The wet freight desk trades ships around the world fixing both external and internal cargoes, aiming always to maximise the inherent value of the trading platform. 22 TRAFIGURA CORPORATE BROCHURE

25 PERFORMANCE CAPABILITIES Stena Primosk oil tanker. DRY FREIGHT Around 35 percent of Trafigura s annual shipped tonnage is in dry bulk commodities such as coal, iron ore and mineral concentrates. These cargoes are shipped using a combination of time charter and voyage charter. We control on average 40 ships on time charter and 50 ships on voyage charter at any one time. Internally, we act as a service centre to Trafigura s Metals and Minerals trading desks. Externally, we offer freight services to thirdparty customers including miners, steel mills and other trading houses. RESPONSIBLE SHIPPING As a trading company that regularly buys and sells cargo from and to oil majors, we make sure we meet their rigorous standards for shipping and freight. And we go further, with strict rules governing certification and vessel quality. A strict vessel screening policy makes safety top priority. We use both internal and external vessel vetting services to make sure that we only charter vessels that are technically suitable for the intended trade. We require every vessel we charter to have earned at least two approvals from oil majors using the Oil Companies International Marine Forum (OCIMF) Ship Inspection Report (SIRE) Programme over the previous six-month period. We also specify that any tanker we charter must be double-hulled. We have an age-limitation policy that limits chartering to ships that are less than 25 years old. And we ensure that all our vessels are classified by an accredited member of the International Association of Classification Societies (IACS). TRAFIGURA CORPORATE BROCHURE 23

26 STRATEGIC PARTNERSHIP PUMA ENERGY Puma Energy is a global oil and petroleum products distribution company backed by strong infrastructural resources in 46 countries across five continents. The company manages over 18 million m 3 throughput volumes of oil products via its network of 89 bulk storage terminals, 53 airports and over 2,250 service stations. Its downstream sales volumes reached close to 19 million m 3 in m m m m 3 Storage capacity Throughput volumes in ,500+ 2,250+ Employees Retail sites FUELLING PROGRESS Puma Energy is Trafigura s leading downstream trading partner for oil and petroleum products. It operates independently but gains synergies from our access to global fuel markets. Trafigura owns 48.8 percent of the company. Puma Energy is fuelling progress by getting oil products to parts of the world where they make a real difference to people s lives. It has built a successful global business by doing the simple things well. It delivers product when and where it is needed, and invests in storage, supply systems and people to make that happen. This is a new breed of oil major. Puma s unique business model focuses on international reach and downstream delivery. It integrates fuel supply structures and invests in infrastructure to maximise opportunities in high-growth markets. It is tapping into energy needs in Africa, Central and Latin America, the Caribbean, Asia Pacific and Europe. Puma Energy storage facility in Mackay, Australia. 24 TRAFIGURA CORPORATE BROCHURE

27 PERFORMANCE CAPABILITIES Puma Energy service station, Botswana. GROWING ORGANICALLY AND THROUGH ACQUISITION Puma Energy has an ambitious, entrepreneurial culture. The company has expanded rapidly though a combination of organic growth and acquisition. It has repeatedly proven its ability to incorporate new businesses into its portfolio, both in existing markets and in new territories and regions. Puma Energy built its reputation with a track record of successful growth in emerging economies. Today, some of its largest retail networks are in fast-growing developed economies. It built a substantial presence in Australia with multiple acquisitions in In 2015, it acquired BP s bitumen operations. It is one of the country s largest independent retailers and a major wholesale distributor across the region. GLOBAL HUB TERMINALS AND REGIONAL STORAGE Strategically located bulk storage terminals provide the backbone for Puma Energy s fuel distribution businesses. The Bayamón terminal in Puerto Rico serves the US, Caribbean and Central American markets. Other terminals are in the Jebel Ali Free Zone in the UAE and off the southern coast of Malaysia at the epicentre of global trade routes. The company has strong midstream capabilities at the Sillamäe and Paldiski terminals in Estonia. It is investing here to grow throughput of light oils, shale oil, petrochemicals, LPG, gasoline and aviation fuels. A global network of regional facilities supplements the hub terminals. In the UK, the network includes a recently acquired 1.4 million m 3 storage facility at Milford Haven, one of the largest sea-fed, terminals in North-West Europe. In Africa, it is completing major construction projects in Mozambique and Angola. In 2015, it opened the world s largest conventional buoy mooring (CBM) facility in Luanda Bay, providing security of fuel supply to and from Angola and Africa. PRODUCT DIVERSIFICATION Business lines and retail customers around the world trust Puma Energy to deliver high-quality fuels safely, reliably and at a fair price. It has extensive business-to-business distribution networks and contracts with oil majors and leading oil traders. Its fuel delivery services support economic development and national infrastructure programmes. In lubricants, it is the world s largest distributor of Castrol products. It is a leading integrated global bitumen distributor with facilities in Angola, Central America, Malaysia, Vietnam, Spain, Australia and the UK. The company supplies mining businesses and has long-term contracts with large power generation companies around the world. Multinational construction companies rely on Puma Energy fuels in multiple territories. It is the exclusive fuel supplier to the Panama Canal Authority for the Panama Canal expansion programme. The aviation business continues to grow. Puma Aviation International now has operations in 53 airports in 19 countries. It services major international carriers, such as Delta, Air France/KLM, Qatar Airways as well as the US Air Force. For further information please visit TRAFIGURA CORPORATE BROCHURE 25

28 INVESTMENT CAPABILITIES DT GROUP DT Group is a joint venture between Trafigura and Cochan. It develops markets in sub-saharan Africa, with a particular focus on Angola. It works closely with international and local partners in the logistics, trading and natural resources sectors. With offices in Geneva, Luanda and Singapore, DT Group s interests span trading, shipping infrastructure, asset management, logistics and mining. 151 $1.8bn People employed globally Total assets 4 $3.9bn Owned vessels Sales revenue INVESTING IN AFRICA S FUTURE DT Group is developing and growing a range of businesses predominantly focused on Angola. The Group is a 50:50 joint venture leveraging the market capabilities and financial strength of Trafigura together with the local knowledge networks and specialist expertise of Cochan. DT Group s flexible business model allows it to seed, develop and scale up a wide array of projects. It is helping to develop new markets in Angola and beyond by participating in transformative projects in infrastructure, logistics and economic diversification. DT Group Ana Nzinga vessel off the coast of Angola. 26 TRAFIGURA CORPORATE BROCHURE