THE NEXT WAVE OF VALUE: IMPLEMENTING GLOBAL BUSINESS SERVICES Mick Myers General Manager, Shared Business Services Minerals & Metals Group (MMG) Mick.Myers@mmg.com

15th Annual Australasian Shared Services & Outsourcing Week,

Melbourne 17thApril 2012

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Disclaimer

The information contained in this presentation is intended solely for your personal reference and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organisation/firm) or published, in whole or in part, for any purpose. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. It is not the intention to provide, and you may not rely on this presentation as providing, a complete or comprehensive analysis of the Company’s financial or trading position or prospects. The information contained in this presentation should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect material developments which may occur after the date of the presentation. None of the Company nor any of its respective affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss or damage howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation.

This presentation includes forward-looking statements. Forward-looking statements include, but are not limited to, the company’s growth potential, costs projections, expected infrastructure development, capital cost expenditures, market outlook and other statements that are not historical facts. When used in this presentation, the words such as "could," “plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward-looking statements. Although Minmetals Resources Limited (“MMR”) believe that the expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.

This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in the United States or any other jurisdiction and no part of it shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation thereto, nor does this presentation constitute a recommendation regarding the securities of the Company. This presentation is not for distribution in the United States. Securities may not be offered or sold in the United States absent registration or exemption from registration under the US Securities Act. There will be no public offering of the Company’s securities in the United States.

Agenda

Who is MMG?

Global Services to support Agile Businesses

Regional Hubs to Support Emerging Markets

Managing the Transition

Embracing the Journey to GBS

Clearing the Pathways to Success

Engaging Global Business Owners

Decision Support Tools

A brief look at the payback on ERP investments

A look to the future…

Company and Speaker Profile

MMG

• Revenue of ~US$2.2b and NPAT of ~US$0.5b in 2011.

• Employs 3,500 people at its mining operations in Australia & Asia.

• The world’s second largest producer of zinc and a major producer of copper,

gold & silver with exploration programs in North America & Asia.

• Core values: Safety, Integrity, Action, Results.

Mick Myers

• Leads MMG’s SBS which includes Financial, Procurement, Property and HR

Services delivered by a team in Melbourne, Vientiane (Laos) & Vancouver

(Canada). Currently Integration Manager of corporate offices of Anvil Mining.

• Ex GM Finance @ MMG – Corporate Accounting & Reporting, Tax & Treasury.

Joined the group in 2004, experienced de-merger of smelting group & float of

Nyrstar in 2007, merger with Oxiana in 2008 and acquisition of MMG by CMN in

2009, then business combination with MMR & listing on Hong Kong exchange.

• Previously with Deloitte - led IFRS Implementation Project @ Telstra and has

extensive experience in enterprise risk, forensic and assurance services.

• Board member of Australasian Shared Services Association (“ASSA”)

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A bit about MMG…

Major Top 3 of mid tier resource companies within 5 years

Major group projects in Australia, Canada & Africa

International

Operations in Australia, Africa and Asia

Listed on the Hong Kong Stock Exchange – current market cap ~ US$3b

Exploration in Australia, Canada, USA, Chile, Indonesia, Africa, Jamaica

Diversified

Base Metals

Primary products include Copper, Zinc, Gold, Silver and Lead

Nickel, Bauxite / Alumina

Upstream Mining – open cut and underground

First stage processing – not smelting

Our Vision: Building the next generations’ leading, global diversified minerals and metals company

“Shared Services underpins MMG’s business model”

The Way We Operate – the “MMG Way”

Business Model Our business model aims to drive the bottom line cost for the company as low as possible:

Only do what we need to do on site – focus on Safety, Volume and Cost.

Aggregate everything else we do into support hubs.

Continuously improve our operations, service and support

Operating Model

The business model will be implemented by the way we operate:

Articulates what is done by group and what is done on site

Defines functions and roles

Defines specific accountabilities

MMG Management System The operating model will be implemented by MMG’s specific rules and processes:

One common set of policies and

standards.

Standard and simple processes

and business information

Standard and simple

organisation structure

Regional hubs to support growth in emerging markets

Legend:

Development / Exploration Assets

Dugald River (Australia) Zinc/lead/silver (development)

Izok Corridor Project (Canada) Zinc/copper/lead/silver (development)

Mutoshi (DRC) Copper

Exploration areas Australia, Indonesia, Canada,, Africa

Bauxite exploration Jamaica

Production Assets

Sepon (Laos) Copper/gold

Century (Australia) Zinc/lead/silver

Golden Grove (Australia) Zinc/copper/lead/gold/silver

Rosebery (Australia) Zinc/copper/lead/gold/silver

Kinsevere (DRC) Copper

Operating assets

Development assets

Exploration areas

Current shared service centres

“Shared services must evolve to support the business’ growth plans – or risk being left behind!”

Proposed shared service centres

The evolutionary path from Shared to Global Business Services (GBS)

Competitive differentiation 5

4

2

1 Process Definition

Process Integration

Process Optimisation

Process Control

Process Maturity

5-10 years We are at best practice We are considered a market leader – ie in top quartile world wide. We are known as being: Dynamic in responding to business and market needs through our processes

> 10 years We are the Toyota of the mining industry. We are known as being: The industry defers to us regarding process excellence

We are a function based organisation. We see process is something back office do. We begin : our journey to define our processes – current state is siloed

2-5 years We have caught up with our peers. We are showing signs of excellence in some areas. We are known as: having successfully integrated processes across functions, eg Employee Services

1-2 years We have a clear strategic plan around process and quality. No longer optional. Managers rewarded on meeting process objectives. We have : An emerging culture of continuous improvement, measurement and process conformance

Time

3

June 2009 Today

What sort of SSC suits your business?

2010

2012 2014

Agile business systems are essential to meet customer needs & expectations of management

Building “A” Quadrant Systems is crucial to the success of Global Business Systems

A range of systems exist to underpin productive behaviour

Embracing cultural diversity is crucial for success

At MMG we seek to gain the Competitive EdgeTM

The push for continuous improvement requires awareness of the Culture Change Curve

Embracing the Journey to GBS

© 2011 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

Companies are Refining How They Leverage and Drive Value From Their Services Organization

Global Business ServicesTraditional Shared Services

Stage

3

Stage

2

Stage

1Function-

Centric

Process/ServiceCentric

Value-Centric

Maturity

Strategic Business

EnablementBusiness Intelligence, Collaboration,

Capability, Flexibility/Agility

Operating ExcellenceDecision Support, Cash Optimization,

response Time, Error Rates

Complexity

ReductionEliminate, Simplify, Automate,

Consolidate, Globalize

• Functionally focused & owned platform

• Standardization

• Process improvement

• Automation

• Shared services centric

• Functional-oriented platform

• Multiple functions

• Individual SLAs

• Performance technology improvements

• Enterprise standards

• Knowledge COE

• Use of BPO & managed services outsourcing

• Service-oriented independent platform

• Service catalog-centric

• Balanced scorecard performance

• Non-traditional knowledge COE

• Commercial performance profile

• Innovation

Continuous

Commercial

Assessment

(Global, cross-functional, transactional and

specialist services oriented)

Navigating the HMS GBS requires awareness of the potential perils

Data

inaccuracy

Hidden “roles” in the business

Inability to

adjust to

changing

conditions

IT

problems

Poor

service

quality Lack of

business

unit

support Ability to opt out of GBS

Poor communications

Clear pathways to a successful GBS model

Obtain the mandate

from EXCO and set a

clear vision of shared

service model

Engage at each

turning point in

transformation

journey Review baseline model

and target activities that

should be in scope of

Shared Services

Strong business case for change

Visible and authentic leadership

Structure teams for success

Agree Service Levels

Communicate

Building GBS requires the commitment of the business and discipline to execute the model

“The most frequent reason for shared services failure is the lack of executive support and absence

of an explicit mandate.”

Engaging Global Process Owners

Sites Operations

Group Functions eg SBS

Global Process Owners

Process Owners are accountable

for sustainability of processes: • Process design and governance

• Stakeholder engagement

• Manage the change journey

Functional Managers accountable for

results: • Benefits case and realisation

• Leading the change and make it happen

• Identifying continuous opportunities to

improve

THE KEY IS EXECUTING TOGETHER! Functional Managers and Process Owners have the responsibility to contribute

• One-on-one proactive engagement

• Visible leadership to confirm alignment

• Escalate to EXCO if there is no consensus

Clear benefits from establishing Global Process Owners

MMG has established Process Owners for Global Business Processes to drive the model

Other Council

Members

General Manager

Organisational

Effectiveness (Chair),

Cliff Parker

General Manager

Strategic Performance,

Charles Reis

General Manager

Shared Business

Services,

Mick Myers

Chief Information Officer,

Peter McLure

General Manager

Enterprise Risk,

Richard Hearn

Manager MMG

Management System,

Patricia Bunde

Data mining & conversion are the commodities of trade for the future GBS

Balancing the Payback on ERP investments – processing speed / efficiency vs enterprise value

Initial investment

Ongoing support

Initial payback

Continuous improvement

Intangible benefits

Strategy

Operational

Transactional

Essential infrastructure

The justification for major ERP investment usually stems from...

Strategic: we need to do this thing to support a

new business strategy

Operational: we need to do this to provide

information needed by the business to operate

Transactional: If we do this we will displace “x”

staff or we will achieve a lower unit cost for core

processes

Essential infrastructure: we need to do this thing

to allow the business to grow rapidly

A look to the future-state GBS…..

© 2011 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

Future State GBS Model seeks to maximise the Leverage and impact of Services by Making it an Enterprise-Wide Competency

• Organisation – function focus shifts to strategy, grow &

protect; GBS accountable for all phases of service Design,

Build & Run activities for areas in scope including selected

Knowledge COEs

• Governance – integrated and horizontally focused

• Opportunity – maximum transaction and skill

leverage; focused enterprise approach including

agility & operations/service excellence

• Challenges – demands high level of global

integration

Building a World Class Global Business Service

Set a clear plan –

establish strategic

intent & alignment

with the business

ExCo sponsorship

well-defined

governance &

voice of customer

Recruit & retain

employees – blend

technical, relationship

builders & challengers Consolidate, Standardise,

Integrate & Automate

Build flexibility &

capability of team,

rotate through the

business

Embed culture

of continuous

improvement

Outcome

World

Class everyday

Transparent reporting of

performance & review SDM

Finally … Join the Club

Australian Shared Services Association (“ASSA”)

is a professional industry member based association committed to representing the

collective voice of the shared services profession, offering members:

• Networking events and forums

• Participate in value for money benchmarking studies and review previous studies

• Accredited Training conducted in partnership with AIM

• Access to a knowledge library on up to date articles on Shared Services

• Access to companies with varying degrees of shared services maturity

• Conference and partner discounts

• Representing the profession through a single voice for Shared Services

For further information: www.assa.net.au

Questions?