ENGLISH ADVANCING TR ADE TRAFIGURA GROUP CORPORATE BROCHURE

Transcription

1 ENGLISH ADVANCING TR ADE TRAFIGURA GROUP CORPORATE BROCHURE

2 ADVANCING TR ADE BUSINESS HIGHLIGHTS* $127.6bn 169.5mmt ** $39.6bn Group revenue Combined volume of commodities traded Total assets 74% 120.4mmt $46.2bn+ Oil and Petroleum Products revenue as a percentage of Group income Oil and Petroleum Products total volume traded Financial lines available to Trafigura 26% 11.3mmt 2,350+ Metals and Minerals revenue as a percentage of Group income Metals total volume traded Shipping and chartering fixtures per year 37.8mmt 5,326 Minerals total volume traded Average number of employees over the year Trafigura Beheer B.V. and the companies in which it directly or indirectly owns investments are separate and distinct entities. In this publication, the collective expressions Trafigura, Trafigura Group, the Company and the Group may be used for convenience where reference is made in general to those companies. Likewise, the words we, us, our and ourselves are used in some places to refer to the companies of the Trafigura Group in general. These expressions are also used where no useful purpose is served by identifying any particular company or companies. * Trafigura s financial year runs from 1 October, 2013 to 30 September, ** Million metric tonnes.

3 OVERVIEW ADVANCING TRADE 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 or an end-user, our focus, commitment and global resources can get you closer to your markets. These pages set out what we do and how we add value. CONTENTS Overview 02 How we re advancing trade around the world 06 Trafigura at a glance 08 Trafigura s global network 10 Business model and structure Performance capabilities 12 Oil and Petroleum Products Trading 16 Metals and Minerals Trading 18 Shipping and Chartering 20 Puma Energy 22 Developing markets in Papua New Guinea 24 DT Group 26 Impala Terminals 28 Accessing markets through Porto Sudeste 30 Mining Group 32 Galena Asset Management Corporate responsibility 34 Sustaining trade 38 Trafigura Foundation TRAFIGURA CORPORATE BROCHURE 01

4 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. 02 TRAFIGURA CORPORATE BROCHURE

5 OVERVIEW Advancing trade GLOBALLY AND AT SCALE Singapore In volume and across the world at the heart of the global economy. Trafigura is active in 36 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. Customers for oil and petroleum products include electric utilities, refiners, majors and National Oil Companies. Metal and minerals customers range from mining companies to smelters, refined metals retailers and industrial manufacturers. Malaysia Advancing trade with EXCELLENT END- TO-END SERVICES Aligning our resources with your priorities. Trafigura is privately owned and fully independent. We relish that status. It means we stay focused on what our customers want. 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. TRAFIGURA CORPORATE BROCHURE 03

6 OVERVIEW Advancing trade by INVESTING IN INFR ASTRUCTURE Brazil Strategically located infrastructure that 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, buy ships and develop mines whatever it takes to help trade flow. Impala Terminals ports and terminals enable the transportation of US coal down the Mississippi, oil exports from Colombia, concentrates exports from Mexico and Peru, and iron ore out of Brazil. Our midstream and downstream investment, Puma Energy, manages storage, import terminals and distribution on five continents. 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 with over 130 banks. Our strong balance sheet generates economies of scale, supports infrastructure investment and allows us to finance production. Our prudent approach to risk management unlocks access in volatile markets. 04 TRAFIGURA CORPORATE BROCHURE

7 OVERVIEW Advancing trade BY IMPROVING COMPETITIVENESS China Reducing trading costs and extending service. In its early years, Trafigura was one of a few trading firms that challenged the traditional dominance of big institutions in commodity markets. In the process, we helped to redefine the way commodities were traded. Today, we are an agile, responsive business operating in fluid, fast-changing markets. Our continued success depends on consistently delivering leading-edge services. We develop trade routes and product categories. We improve logistics. We introduce new counterparties and strengthen connections between suppliers and end-users. We continually innovate to make markets more efficient. Democratic Republic of Congo Advancing trade SUSTAINABLY Long-term partnership built on firm foundations. Trust is imperative in any long-term relationship and it has to be earned. We work closely with host governments, project partners and local communities to generate lasting shared value. We put down roots wherever we operate. We work closely with local communities to gain their confidence and earn their trust. This is the right way to do business; and it makes sense from a commercial perspective, because we rely on local knowledge. We subscribe to the latest international health, safety, environmental and social standards. We are constantly developing best practice as a source of competitive advantage. TRAFIGURA CORPORATE BROCHURE 05

8 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. REGIONAL INFORMATION MIDDLE EAST 9% Proportion of oil and petroleum products revenue attributable to region 3 Offices 24 Employees AFRICA Impala Terminals is one of Africa s leading logistics specialists for non-ferrous concentrates and refined metals 12 Offices 827 Employees EUROPE 4.4mmt Projected volumes processed in 2015 at MATSA mine, Spain 12 Offices 1,306 Employees 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, Montevideo, Moscow, Mumbai and Singapore. Metals and Minerals We are one of the world s largest metals and minerals traders. 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. We negotiate off-take agreements with miners and smelters and invest in logistics to improve market access for our clients. 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 mmt Oil and Petroleum Products volume traded 49.1mmt Metals and Minerals volume traded 2,350+ Shipping and Chartering fixtures * Financials relevant to Shipping and Chartering are consolidated within Oil and Petroleum Products/Metals and Minerals trading activities. 06 TRAFIGURA CORPORATE BROCHURE

9 DIVISIONAL PERFORMANCE OVERVIEW Group revenue (USD billion) 150 Oil and Petroleum Products volume traded (mmt) 150 Metals and Minerals volume traded (mmt) Metals Minerals LATIN AMERICA 150,000 Annual truckloads of concentrates replaced by conveyor belt in Callao, Peru 20 Offices 1,995 Employees NORTH AMERICA 100,000 bbls Daily crude oil throughput capacity from Rio Bravo, Texas pipeline 5 Offices 348 Employees ASIA & AUSTRALIA 1-24 tonnes Standard lot size on Lykos online platform for metal procurement in India 13 Offices 826 Employees INDUSTRIAL AND FINANCIAL ASSETS Puma Energy** Storage capacity: 5.6m m 3 Throughput volumes: 19.9m m 3 Service stations: 1,800+ DT Group Countries of operation: 5 Owned vessels: 4 Total assets: USD2.9bn Impala Terminals Countries of operation: 20+ Terminals: 25+ Storage capacity: 1.3m m 2 + Mining Group Ore extracted at MATSA: 2.3mmt Ore extracted at Catalina Huanca: 0.6mmt Galena Asset Management Liquid trading strategies: USD1.7bn+ Credit strategy: USD104m+ Real asset strategy: USD407m+ 48.8% ownership 50% ownership 100% ownership 100% ownership $2.2bn Total funds under management, including managed accounts 7,000+ employees*** 200 employees 1,624 employees 1,269 employees 11 years in operation ** Effective 16 September, 2013, Trafigura held 48.79% in Puma Energy. Puma Energy was deconsolidated at the end of the 2013 financial year at which point Trafigura ceased to control Puma Energy. *** All non-puma Energy employee numbers represent average annual totals. TRAFIGURA CORPORATE BROCHURE 07

10 OVERVIEW TRAFIGURA S GLOBAL NETWORK With 65 offices in 36 countries, Trafigura s network extends to every corner of the globe. Our international, end-to-end services connect producers and consumers worldwide. This spread highlights some achievements in CALGARY GENEVA TRAFIGURA, US Trafigura successfully sells 80 percent of its share of an oil storage terminal network in Corpus Christi, US, for USD860 million. Trafigura retains a 20 percent stake and long-term commercial rights to use the terminal, whilst freeing up capital for reinvestment in other business activities. STAMFORD HOUSTON MEXICO CITY IMPALA TERMINALS, COLOMBIA 1.5mmt Impala Terminals builds Barrancabermeja river-port as part of its multimodal logistics and infrastructure project along the Magdalena River. It will have the capacity to handle 1.5 million tonnes of cargo a year. MATSA, SPAIN Trafigura s Mining Group inaugurates the new Magdalena mine. Lying just 8 kilometres from our existing MATSA asset, the mine represents the first significant metals find in Spain for decades. The EUR300 million expansion plan is nearing completion, including a new treatment plant that will almost double production from 2.3 to 4.4 million tonnes during LIMA IMPALA TERMINALS, BRAZIL Impala Terminals and Mubadala Development Company jointly purchase a majority stake of Porto Sudeste near Rio de Janeiro. The iron ore terminal represents the Group's largest construction project to date and will have the capacity to handle 50 million tonnes (mmt) a year, with the potential to upscale to 100mmt in the future. More on page TRAFIGURA CORPORATE BROCHURE MONTEVIDEO IMPALA TERMINALS, PERU Impala Terminals inaugurates Peru s most modern mineral concentrates terminal in Callao after a total investment of USD80 million in the first stage of an expansion project. A 500 percent improvement in productivity at the terminal is expected as a result of the investment.

11 OV E RV I E W KEY l Oil and Petroleum Products l Metals and Minerals l Other Trafigura offices TRAFIGURA, CHINA Trafigura agrees to acquire a 30 percent equity stake in the Jinchuan Group s newly established copper smelter in Fangchengang, People s Republic of China. MOSCOW GALENA, SWITZERLAND $400m Galena Asset Management announces the close of its first Private Equity Resources Fund with USD400 million of total committed and invested assets. The fund will invest in smalland medium-sized metals and mining companies, which are in an expansion phase. BEIJING SHANGHAI TRAFIGURA, JAPAN $250m MUMBAI Trafigura raises JPY25.5 billion (USD250 million) through its first significant long-term Yendenominated loan. This was backed by nine Japanese banks. SINGAPORE JOHANNESBURG TRAFIGURA, SINGAPORE Trafigura raises SGD200 million through its first Singapore Dollar perpetual subordinated bond. The bond was priced at 7.5 percent and listed on the Singapore Stock Exchange, drawing strong support from Singapore-based private banks and funds. PUMA ENERGY, PAPUA NEW GUINEA Puma Energy acquires InterOil s midstream and downstream assets for USD525 million in a significant expansion into Papua New Guinea, making Puma Energy one of the country s main fuel suppliers. More on page 22 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 We negotiate off-take agreements with oil producers, refiners, mining companies and smelters. We invest in logistics that improve market access for our suppliers. STORE We store petroleum products at Puma Energy and other third-partyowned tankage. We store metals and minerals at Impala Terminals and third-party-owned facilities. BLEND We blend physical commodities to regional, market and customer specifications in strategically located terminals and warehouses around the world. DELIVER 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. ADVANCING TRADE: HOW WE CREATE VALUE BY ACCESSING MARKETS We focus energy and resources on activities that make trade work better. We continually invest in high-quality infrastructure. We build innovative, end-to-end services to bridge the gap between buyers and sellers more effectively. BY DEVELOPING MARKETS We contribute to the global economy by finding new ways to trade. We identify and act on arbitrage opportunities. We bring in new counterparties, and develop product categories and trading routes. Our activities help to create more efficient markets, reducing long-term costs for participants. BY SERVICING MARKETS Trafigura s services add value at every stage of the supply chain. We offer technical advice and financial support. We build infrastructure and devise logistics to streamline and simplify transportation for our clients. BY SUSTAINING MARKETS Responsible trade drives economic and social progress. We aim to conduct our activities so as to benefit communities where we operate. BY MAKING THE CASE FOR GLOBAL TRADE As a specialist independent trading house, Trafigura is well placed to take on an advocacy role. We communicate the economic and social benefits of global trade generally and, more specifically, the positive role that Trafigura plays. 10 TRAFIGURA CORPORATE BROCHURE

13 ... OUR STRUCTURE DELIVERS IT OVERVIEW Trafigura s core business is physical trading and logistics. Our assets and investments complement and enhance this activity. The chart below graphically represents the centrality of trading to our approach. Strategic investments in storage and logistics capabilities create arbitrage opportunities. As firm believers in the benefits of local rather than central control, we structure these investments as standalone businesses.* Downstream Owned vessels Midstream PUMA Liquid trading strategies *** ENERGY Credit strategies GALENA ASSET MANAGEMENT ** Real Asset strategies IMPALA TERMINALS Ports and terminals Transport assets Multimodal logistics Voyage charter FR EIGH T W ET OIL AND PETROLEUM PRODUCTS TRADING METALS AND MINERALS TRADING GROUP MINING Owned mines Time charter Trading DT GROU P DRY FR EIGH T Voyage charter Technical advisory Time charter Shipping Infrastructure Investments * The size of each segment is not indicative of percentage of ownership or contribution to Trafigura s bottom line. ** Galena Asset Management s teams operate wholly independently of Trafigura, but benefit from the Group s insights into global supply and demand. *** 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 by volume of oil and petroleum products, handling 2.5 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 capabilities around the world. Global trading teams are based in Geneva, Houston, Montevideo and Singapore and are supported by offices in Beijing, Calgary, Johannesburg, Moscow and Mumbai. 74% 120.4mmt Contribution to global revenue Total volume traded Oil and Petroleum Products total volume traded (mmt) SERVICE AND PERFORMANCE The US shale oil and gas revolution has had far-reaching effects across the energy spectrum. After years of shortages, today s world is well supplied with oil, and has more than enough refining capacity to meet global demand. Trafigura has the inherent strengths and the agility to respond effectively to these new market realities. As a global trading house we have a detailed overview of macro and micro trends. As physical traders, we gain first-hand experience of economic fundamentals as they play out on the ground. Our emphasis on service and performance resonates with customers. We invest in world-class assets and logistics to streamline and simplify physical delivery. Our trading desks work together on their customers behalf. They are constantly looking for new ways to enhance service levels 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. We operate primarily as physical traders. We source oil from a variety of counterparties including public production companies, oil majors and National Oil Companies. We also provide distribution solutions for producers, and assist refineries by supplying tailored shipments and specialist financing. Trafigura s crude team has built strong technical capabilities. This, combined with our deep understanding of physical flows, allows us to identify complex technical issues and respond rapidly to changing market dynamics for non-standard crude oil opportunities. We have continued to expand our US footprint. In addition to our long-standing blending hub in St James, we now utilise our logisticsbased offering in Texas. This includes exclusive access to throughput from the Rio Bravo pipeline and the Corpus Christi terminal. These activities underpin a growing US domestic lease business. We deal on a regular basis with well over 50 local producers and have scope to continue to expand. Globally, we store and transport in excess of a million of barrels of crude oil per day. We have a thriving business in Africa encompassing both significant exports and imports. In Asia, our volumes continue to grow and we are an active participant in both sweet and sour grade trading. This business is expected to expand as we continue to grow our assets in the region. In Europe, we control tankage at strategic locations and supplement this with short- and long-term leases. We have access to long-term supplies of tradable oil streams and use this to further expand our relationships with regional refiners. GASOLINE The gasoline team manages one of the world s largest seaborne gasoline books. We also have extensive, strategically-located tankage. It is a combination that allows us to deliver great service and optimal performance. We source, store, blend and deliver cost-effective gasoline solutions to customers worldwide. Within the gasoline trading team, we have an active market presence in aromatics, primarily as a blending component. 12 TRAFIGURA CORPORATE BROCHURE

15 PERFORMANCE CAPABILITIES Corpus Christi oil storage facility, Texas, US. We have built up key relationships in every core trading region of the world, including National Oil Companies, major refiners, and numerous downstream partners. The majority of our customers are long-term partners. Many choose to renew and expand their business, based on our solid performance, bespoke customer service and fair pricing. We operate major blending hubs on the Gulf Coast, in the Mediterranean and in 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. FUEL OIL Our fuel oil trading team combines global presence, market knowledge and efficient logistics to connect producers and end-users. Our teams deploy interlocking skills. Origination teams on the ground develop relationships with power generators and bunker fuel traders. Traders monitor macro-economic and market-led patterns and trends. Analysts assess potential blending strategies. We optimise flows and blends to reflect changing patterns of demand. Currently, around 47 percent of global fuel oil supply is used in bunkers, 30 percent in power generation and the remainder for refinery feedstocks. We focus on aligning our blends with specific pockets of demand. We serve the main fuel centres of Singapore, Dubai and Rotterdam. We also have long-term supply contracts to Caribbean countries and are West Africa s biggest bunker fuel supplier. Regulatory changes are driving a general move towards lowsulphur grades and we are increasing the low-sulphur portion of our portfolio in line with global trends. MIDDLE DISTILLATES Our mid-distillates trading operation covers jet fuel, diesel and gas oil. Our teams lease storage globally and use tankage to blend products to local specifications and premium-priced fuels. We trade the full range of distillates, from low to high sulphur. Our well integrated teams are able to shift trading style and focus in line with changing market conditions. Key to our success is the ability to coordinate activities globally and to interact with other parts of the Group to bring customers integrated solutions. We liaise closely with other trading desks and work alongside our biodiesel traders to deliver blends that meet bespoke criteria. We spot-charter and time-charter a wide range of tonnage through our Shipping and Chartering desk. In order to achieve greater physical arbitrage, we charter large tankers. Our teams lease floating storage vessels to provide prompt supply for customers with limited storage. NAPHTHA The abundance of shale gas is generating large stocks of naphtha in the US; much of it is exported. We are one of the world s most active naphtha traders and one of the few with access to a US export facility in Corpus Christi, Texas. We are developing trade flows to the Far East, South America and Europe. We source, store and blend all the most actively demanded products and grades. Our naphtha teams operate in Singapore, Geneva and Houston with regional offices managing origination and business development. We work with colleagues in Dubai, Montevideo, Puerto Rico and West Africa. We focus on building long-term relationships and make a point of working with our customers to meet their changing needs. Our product coverage allows us to take advantage of naphtha s high substitutability. We monitor relative pricing and shifting demand patterns from petrochemical companies. Close working relationships with our gasoline traders and the LPG desk allow us to assess relative pricing for different products and grades. TRAFIGURA CORPORATE BROCHURE 13

16 CONDENSATES Trafigura is a leading international condensates trader. The desk sources both clean and dirty condensate from oil and gas producers and has term off-take agreements in Africa, the Far East, the Middle East, Russia, the former Soviet Union and South America. It uses terminals for blending and building or breaking bulk in the Arabian Gulf, the Baltic region, and the Far East. We are creating new markets for condensates. Some of our customers previously had no use for this versatile product, but we are finding applications at units such as refineries, splitters, petrochemical plants and power generation facilities. US legislation to allow the export of condensates is currently under review. We are maintaining optionality for the business. We retained rights to output from the EF90 condensate splitter as part of the sale of our majority stake in the Corpus Christi terminal in Texas. We have joined forces with Magellan Midstream Partners to build a 50,000 barrel a day condensate splitter at Corpus Christi. This facility is scheduled to open in LIQUEFIED PETROLEUM GAS (LPG) The LPG market is evolving rapidly; we are growing our geographic reach and market share. We trade propane, butane, isobutane and some mixed LPG. Trading volumes will increase further in 2015 when the LPG export terminal at Corpus Christi in Texas becomes fully operational, as Trafigura retains commercial rights to its output. The US is consolidating its position as the world s biggest LPG exporter. Our traders link major production areas in the US Gulf, the Middle East, Africa, the North Sea and the Mediterranean with demand from Asia, Northwest Europe, Latin America and the Caribbean. A strong logistical system supports our trading activities. Effective vessel rotations and higher trading volumes allow us to respond quickly to changes in the market and in our clients requirements. We supply territories where bottled gas is popular and are especially active in West Africa and Latin America. We lease tankage at strategic locations and supply Puma Energy s LPG terminals throughout the world. We work closely with dedicated LPG chartering specialists and oversee a wide range of tonnage everything from small pressurised or semi-refrigerated tankers to Panamax Gas Carriers and Very Large Gas Carriers (VLGCs). We invest in world-class assets and logistics to streamline and simplify physical delivery. Our trading desks work together on their customers behalf. They are constantly looking for new ways to enhance service levels. LIQUEFIED NATURAL GAS (LNG) Trafigura is the world s leading independent trader in one of the fastest growing energy markets. The LNG team is based in Geneva, and supported worldwide. It works closely with the LPG, natural gas and coal desks. LNG s complex logistics require substantial capital expenditure from market participants, setting high barriers to entry for producers, end-users and shippers. In the past, this has also obliged industry players to commit to long-term contracts. Now, as infrastructure is put in place, the spot market is becoming more active and freely traded volumes are growing. We expect the LNG markets to reach a tipping point during this decade and are acting now to be sure we are ready. We have the marketing expertise, the financial strength, the geographic coverage and the understanding of product flows required to succeed in these markets. 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. Knowledge of the different regulatory systems, feedstock prices and quality parameters around the globe is key to successful trading. We track interactions between agricultural commodities, energy markets and regulatory authorities across the world. 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 anywhere in the world, wherever there is an economic or mandated requirement. Our customers include oil majors, refineries and downstream suppliers. Oil vessel, Cape Town, South Africa. 14 TRAFIGURA CORPORATE BROCHURE

17 PERFORMANCE CAPABILITIES Corpus Christi oil storage facility, Texas, US. TRAFIGURA CORPORATE BROCHURE 15

18 PERFORMANCE CAPABILITIES METALS AND MINERALS TRADING Trafigura is one of the world s largest metals and mineral traders. We are building global connectivity between miners, smelters, and refined metal fabricators: benefiting from economies of scale. Our global trading teams are based in Geneva, Montevideo, Singapore and Stamford and are supported by offices in Johannesburg, Lima, Mexico City, Mumbai and Shanghai. 26% 49.1mmt Contribution to global revenue Total volume traded Metals and Minerals total volume traded (mmt) Metals* Minerals* STREAMLINED SUPPLY CHAINS AND ECONOMIES OF SCALE We are constantly looking for better ways to connect producers with end-users. In today s well-supplied markets our competitive advantage stems from our ability to deliver cost-effectively right across the globe. We are scaling up our business wherever we can. We are benefiting from increasing economies of scale as our traded volumes grow. We participate in off-take agreements and develop downstream outlets that underpin volume growth. We form strategic alliances and invest in infrastructure that streamlines and simplifies supply chains. We are investing for the long term. CONCENTRATES AND ORES Trafigura is a market leader in copper, lead and zinc concentrate trading, and a leading alumina 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 and India. We work closely with our partners to develop long-term relationships and to guarantee consistent, high-quality supplies. We offer financial assistance to miners through off-take agreements and strategic alliances. The Trafigura Mining Group provides technical support, including geological surveys and drilling consultancy services. On the demand side, we are focusing on long-term partnerships with smelters and refineries to create a more coherent supply chain for our customers. Through Impala Terminals, we invest in first-class logistics and infrastructure we facilitate the safe, prompt passage of product to market. We combine our warehousing, blending and transport capabilities to aggregate base tonnage, to align to specific requirements and to transport to Western Europe, China, Southeast Asia and Japan. * Metals include non-ferrous metal concentrates and refined metals. Minerals include coal, iron ore and others. 16 TRAFIGURA CORPORATE BROCHURE

19 PERFORMANCE CAPABILITIES Bowie Resource Partners, Dugout Canyon Mine, US. REFINED METALS Trafigura is a world-leading participant in the global refined metals market. We trade copper, aluminium, zinc, lead, tin and nickel. We are developing a new line of business in precious metals. We mainly trade London Metals Exchange (LME)-grade metals in their refined form, such as cast copper rod and aluminium billet. The refined metals and the concentrate teams collaborate closely, using a variety of tools to facilitate trading, including structured finance and tolling models. Unlike many other Western metal traders, we operate in China through a domestic trading subsidiary. Today, around 40 percent of total refined metals demand is within China. Our domestic sales teams sell directly to end-users. In India, we also sell to small and medium-sized manufacturers through Lykos, our online refined metals procurement platform. We maintain a global presence, offering our trading services in the major hubs. Our knowledge on the ground allows us to source metals swiftly and cost-effectively worldwide. Being active globally allows us to match supply with demand efficiently. COAL We have steadily built up traded volumes in recent years to become a top-three coal trading company. Our focus is on developing incisive trading solutions via efficient delivery methods. As volumes have increased so too have our economies of scale, increasing our ability to take advantage of global arbitrage. We apply these approaches across a full range of thermal coal qualities in all the major points of origin and across all the major global sales markets. Beyond pure trading, we have access to trade flows through our strategic alliance with Bowie Resource Partners and in our logistics positions on the Mississippi, in Indonesia and in China. The Galena Asset Management Private Equity Resource Fund s joint venture ownership of Bowie Resource Partners provides access to 14 million tonnes annually of consistent quality coal from four mines in Colorado and Utah. With Impala Terminals Burnside facility on the Mississippi now fully operational, we have ready access to a 15 million tonne capacity terminal, which consolidates our logistics position and ability to source, optimise, and market the full range of coal qualities in the region. In China, our domestic subsidiary, Transcoal, adds an extra dimension to our trading, with scope for over 3 million tonnes annually of both domestic and international coal sales into challenging markets along the Yangtze River. In Indonesia, we have developed two sub-bituminous thermal coal brands, TEK and TSK. Based on close management of a complex supply chain, these coal products present our customers in Asia s fast-growing power generation sector with reliable deliveries and consistent quality. In South Sumatra, we have recently invested, together with our partner Titan, in the construction of a road and a port that will link the Muara Esim mining area to the Musi river. When this project is completed, it will enable the export of 12 million tonnes of coal. IRON ORE We trade the whole spectrum of iron ore products and grades, including fine, low-grade and high-grade lump. 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 smaller mining concerns in India, South Africa, Mexico and Chile. In China, our sales teams have built up strong contacts with mills and local trading houses. Impala Terminals global network provides our business with an important competitive advantage. In particular, its joint ownership with Mubadala Development Company of the 50 million tonne capacity Porto Sudeste Terminal is connecting Brazil s iron ore miners with international markets. TRAFIGURA CORPORATE BROCHURE 17

20 PERFORMANCE CAPABILITIES SHIPPING AND CHARTERING Trafigura Maritime Logistics provides freight services to Trafigura s various commodity trading teams and third-party clients. Shipping and chartering operations 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. 2,350+ Shipping and Chartering fixtures per year 2014 Wet and Dry Freight Activity Wet Dry Tonnage shipped 60mmt (1) 33mmt (2) Number of fixtures 1, Average time-charter fleet (3) 40 (3) (1) Includes both internal and external usage as well as tonnes Re-Let to other owners/operators. (2) Includes 21mmt external customer tonnage. (3) A vessel on hire for longer than 3 months. 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 CIF (Cost, Insurance and Freight) instead of FOB (Free On Board) terms. COLLABORATING WITH TRADING TEAMS Trafigura s commodity trading teams work closely with our freight desks. Our commodity traders rely on real-time freight pricing to structure physical arbitrage opportunities. Our freight specialists quote fixed freight prices and use their market knowledge to maintain open and hedged positions. Commodities traders use freight pricing to fix delivery costs and price transactions accurately. Our freight professionals maintain a continuing dialogue with the various trading desks. Knowledge of traders requirements helps to 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 CIF (Cost, Insurance and Freight) instead of FOB (Free On Board) terms. CHARTERING AND DERIVATIVES MARKETS Our freight trading teams time-charter vessels and negotiate spot fixings, as required, to manage Trafigura s physical freight positions. They also trade physical freight with external clients and are highly active in the derivatives market. 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 dead-weight-tonne (DWT) tankers. The vessels trade in every market segment, including crude, clean, dirty, LNG and LPG. We fix vessels on spot voyages, utilise COAs (Contracts Of Affreightments) 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. 18 TRAFIGURA CORPORATE BROCHURE

21 We use tanker Forward Freight Agreements (FFAs) to lock into fixed freight prices and hedge part of our shipping exposure. We typically sell paper against various cargo sizes on specific routes largely performed by our time-charter fleet. We ensure we conform to the most rigorous safety and environmental standards. Many of our customers are regular counterparties for Trafigura. All the majors have strict vetting protocols. They will only trade with companies whose assets and procedures meet their best practice. PERFORMANCE CAPABILITIES VESSEL SCREENING POLICY 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. Every vessel we charter must have earned at least two oil major approvals using the Oil Companies International Marine Forum (OCIMF) Ship Inspection Report (SIRE) Programme within the previous six-month period. And we go further. Trafigura s strict vessel screening policy makes safety a top priority. We will only charter double-hulled tankers for period and spot fixings and for our storage business. We are one of very few trading houses to insist on double-hulled vessels. We also have an age-limitation policy, restricting chartering to ships that are less than 25 years old. We also make sure that an accredited member of the International Association of Classification Societies (IACS) classifies all our vessels. We incur additional costs by imposing such high minimum specifications on our fleet, but the knowledge for ourselves and our partners that cargoes are conveyed as safely and cleanly as possible more than justifies the extra expense. 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. Our freight exposure is actively managed using a portfolio of physical and derivative freight positions. We are active in the FFA market and trade bunker swaps to minimise our risk and exposure to large fluctuations in the freight market. Internally, we act as a service centre to the Metals and Minerals Trading Division. Externally, we offer freight services to third-party customers including miners, steel mills and other trading houses. Typical oil vessel within our fleet, Bahamas, Caribbean. TRAFIGURA CORPORATE BROCHURE 19

22 PERFORMANCE CAPABILITIES PUMA ENERGY Puma Energy is a global oil and petroleum products distribution company, backed by strong infrastructural resources, in close to 45 countries across five continents. The company handles over 34 million m 3 of oil products annually via a network of 79 bulk storage terminals, 41 airports and more than 1,800 service stations, with downstream sales volumes close to 14 million m 3 in m m 3 + 1,826 Storage capacity New employees in m m 3 1,800+ Throughput volumes Service stations FUELLING PROGRESS Puma Energy is fuelling progress by transporting 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 Energy s unique business model focuses on international reach and downstream delivery. It integrates fuel supply structures and invests in infrastructure to maximise its opportunities in high-growth markets. It is tapping into energy needs in fast-growing markets in Africa, Central and Latin America, the Caribbean and Asia Pacific. Trafigura owns 48.8 percent of the company. Puma Energy operates independently, but gains synergies from Trafigura s access to global fuel markets. Its second largest shareholder, Sonangol, also provides strong financial and industrial backing, particularly across Africa. GROWING ORGANICALLY AND THROUGH ACQUISITION Puma Energy has an ambitious, entrepreneurial culture. The company has experienced notable organic and acquisition-led growth. At the end of 2014, gross margin is expected to reach USD1.42 billion, up from USD1.16 billion at the end of Puma Energy s fixed asset base has also increased significantly to USD4.1 billion in September, Puma Energy has a proven ability to incorporate new businesses into its portfolio. It has demonstrated this repeatedly in its existing markets in Africa, Central America and Southern Africa, as well as in new territories and regions. The recent acquisition of Interoil s Papua New Guinea (PNG) midstream and downstream businesses in 2014 adds to its portfolio of assets in high-growth economies and complements existing Asia Pacific holdings in Vietnam, Malaysia, Indonesia and Australia. In the past, Puma Energy was known for its successes in emerging economies. Today, its largest retail networks are in fast-growing, developed economies. It now sells fuel through over 1,800 retail sites in the Americas, Africa and Australasia. Puma Energy s rapid growth in Asia Pacific demonstrates the strength of its business model in developed economies. Multiple acquisitions established its presence in 2013; it is now one of Australia s largest independent fuel retailers and a major wholesale distributor across the region. In 2014, it opened its second fuel import terminal in Mackay, North Queensland, having invested USD70 million in its construction just a year earlier. * All figures estimated as of 30 September, Puma Energy s financial year runs from 1 January to 31 December. 20 TRAFIGURA CORPORATE BROCHURE

23 PERFORMANCE CAPABILITIES Puma Energy bitumen terminal, Langsat, Malaysia. 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. Significant ongoing investment here has grown throughput of light oils, shale oil, petrochemicals, LPG, gasoline and aviation fuels. A global network of regional facilities supplements the hub terminals. In Africa, for instance, the network includes a recently expanded 120,000m 3 storage terminal at Walvis Bay, Namibia, and growing operations in Tanzania and in Mozambique. Puma Energy is fuelling progress by transporting oil products to parts of the world where they make a real difference to people s lives. 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. It works closely with multinational businesses such as Castel Group and Coca-Cola. Puma Energy s fuel delivery services support economic development and national infrastructure programmes. In lubricants, it is now the world s largest distributor of Castrol products. Puma Energy s recent acquisition of Trafigura s bitumen supply assets has confirmed its status as a leading integrated global bitumen distributor. It now has 16 dedicated bitumen terminals including those in Angola, Central America, Malaysia, Vietnam, and Spain. It supplies mining businesses and has long-term contracts with large power generation companies around the world. Multinational construction companies like Odebrecht 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. Puma Energy s aviation business continues to grow. Puma Aviation International now has operations in 41 airports in 15 countries. It services major international carriers, such as Delta, Air France/KLM, Qatar Airways as well as the US Air Force. TRAFIGURA CORPORATE BROCHURE 21

24 VALUE CREATION: DEVELOPING MARKETS IN PAPUA NEW GUINEA CHALLENGE ACCESSING AND DEVELOPING MARKETS IN PAPUA NEW GUINEA Image: Puma Energy service station in Australia. 22 TRAFIGURA CORPORATE BROCHURE

25 SOLUTION TRAFIGURA IS INVESTING ACROSS THE SUPPLY CHAIN Papua New Guinea s (PNG) wealth of natural resources including oil, gas, copper and precious metals has enabled strong economic development in recent years. Large-scale private investment in mining, additional LNG production capacity and liberalisation in strategic sectors are driving rapid GDP growth. This is estimated at 6 percent for 2014 and the World Bank is predicting that GDP will grow by as much as 20 percent in PNG has made important progress in key areas of structural reform, but considerable scope remains for a company such as Trafigura, already very active in the Asia Pacific region, to accelerate private sector-led growth. In July 2014, Puma Energy became the largest fuel supplier. With its acquisition of InterOil s midstream and downstream businesses in PNG, it gained a 28,000 barrel per day refinery and 52 service stations as well as fuel depots, terminals and aviation sites. If PNG is to capitalise fully on its potential, the development of the country s transport network will be key. The fast and efficient passage of natural resources to international markets will be critical. Trafigura s extensive experience of operating in developing markets and proven aptitude for challenging environments will play a central role in building the country s long-term growth. $525.6m Puma Energy acquisition of InterOil's midstream and downstream assets in Papua New Guinea 20% Forecast real GDP growth in 2015 (World Bank) PERFORMANCE CAPABILITIES For further information please visit TRAFIGURA CORPORATE BROCHURE 23

26 PERFORMANCE 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. 200 $2.9bn People employed globally Total assets 4 $5.3bn Owned vessels Sales revenue INVESTING IN AFRICA S FUTURE DT Group acts as an incubator and investment vehicle for a range of businesses, focusing mainly on Angola. The Group is a 50:50 joint venture, leveraging the market capabilities and financial strength of Trafigura and the incisive local knowledge and networks of leading Angolan management and investment firm, Cochan. DT Group s co-owners facilitate its activities by contributing specialist expertise and substantial capital. Its flexible business model allows it to seed, incubate and scale-up a wide array of projects. It is helping to develop new markets in Angola and beyond by participating in ambitious and transformative projects. DEVELOPING MARKETS IN ANGOLA Angola is a country with enormous potential. It has a growing population and abundant natural resources, but it still lacks infrastructure and is overly dependent on energy exports. The Government is investing in projects to diversify the economy beyond the oil sector. DT Group is involved in key sectors that support Angola s economic development. The Group maintains flexibility by bringing international specialists and local partners together for each of its projects. DT Group activities span three main areas. It provides trading services that leverage Trafigura s international presence to connect Angola with global markets. It operates logistics businesses that manage infrastructure and transportation. In the natural resource arena, it is developing agriculture and mineral assets. TRADING SERVICES Two subsidiaries, DTS Refining and DTS Commercial, trade crude oil, gasoil, gasoline, jet and bunker fuel with Sonangol, Angola s State energy company. SHIPPING FLEET DT Group s fleet of four bunkering vessels is chartered mainly to Sonangol Distribuidora. Its vessels transport gasoil and fuel oil bunkers from storage facilities in Luanda to Angola s offshore platforms and supply vessels. Trafigura and Puma Energy s shipping operations teams also manage DT Group vessels on time-charter around the West African coast. 24 TRAFIGURA CORPORATE BROCHURE