Sustainability Update Conference Call & Webcast July 15, 2015
Forward-Looking Information Both these slides and the accompanying oral presentation contain certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) and comparable legislation in other provinces. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Teck to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements include statements relating to management's expectations with respect to our business and sustainability strategies, our sustainability goals and expectation that we will achieve them in the established timeframes. These forward-looking statements involve numerous assumptions, risks and uncertainties and actual results may vary materially. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general business and economic conditions, technological solutions, receipt of regulatory approvals and ongoing relations with interested parties. The foregoing list of assumptions is not exhaustive. Events or circumstances could cause actual results to differ materially. Factors that may cause actual results to vary include, but are not limited to: regulatory action, changes in laws and governmental regulations, development and use of new technology, natural disasters and adverse weather conditions, changes in commodity prices, general business and economic conditions, and the future operation and financial performance of the company generally. Certain of these risks are described in more detail in Teck’s annual information form available at www.sedar.com and in public filings with the SEC. Teck does not assume the obligation to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws. Under no circumstances should the information contained herein be considered an offer to sell or a solicitation of an offer to invest in securities. 2
Agenda About Us Welcome Our Approach to Sustainability 2014 Highlights Performance & Next Steps Questions 3
About Us 4
About Us # 1 Producer of steelmaking Top ten copper coal in North America miner in the # 2 Seaborne exporter of Americas steelmaking coal globally #3 zinc miner in the Building world an energy business Implementing a Safety is our comprehensive core value Sustainability Strategy 5
About Us • Headquartered in Vancouver, Canada, with operations in the Americas • Strategy focused on long life assets in stable jurisdictions • Sustainability: Key to managing risks and developing opportunities 6
Safety Performance • Developed and implemented a new High-Potential Risk Control strategy at all operations • Total reportable injury frequency 25% lower than 2013 • High-potential incident frequency rate down by 22% year-over-year 7
Operational Performance • Achieved record throughput at Antamina, record zinc production at Red Dog mine and record steelmaking coal production • Executed a number of major capital projects: • Mill Optimization Project at Highland Valley Copper • Restarted Pend Oreille mine • New acid plant at our Trail Operations 8
Financial Performance Balance Sheet Remained Strong in 2014 Revenues $8.6 billion Gross Profit $2.9 billion (before depreciation & amortization) Adjusted Profit $452 million Dividends Paid $0.90 per share 9
Our Approach to Sustainability 10
Our Sustainability Strategy • In 2011, we launched our formal sustainability strategy • Organized around 6 focus areas representing our most material sustainability challenges and opportunities • Set short-term (2015) and long-term (2030) goals and vision for each area • On track to achieve all of our 2015 goals this year 11
Our Approach to Materiality • Comprehensive materiality review of sustainability strategy every five years to inform long-term strategy • Annual materiality assessment process to identify and address current issues Our Annual Materiality Process Reviewing Quantifying Receiving Soliciting Developing with internal impacts feedback internal materiality and external under G4 from COI feedback matrix sources Guidelines panel 12
2014 Highlights 13
Community: Creating mutual benefits • Delivering shared value: providing local employment and economic benefits • Minimizing negative impacts: including those affecting the local environment and social landscape • Respect and transparency: Developing and maintaining trust-based relationships with local communities 2014 Highlights Completed Human Rights Assessments at all operations 10 formal agreements reached with Indigenous Peoples in 2014 14
Case Study Community Environmental Panel in Andacollo • Concerns expressed by community group regarding dust • Formed a joint community-Teck Environmental Panel to: o Facilitate dialogue o Share data and information o Work together on solutions • Community still has questions & concerns • But we now have a shared space to communicate and focus on shared environmental priorities 15
Case Study Working with Indigenous Peoples in the Arctic • Red Dog celebrated 25 years in 2014 • Unique agreement between Teck as operator and NANA who own the land • Benefits: $1 billion in proceeds for NANA from the mine 51% of employees are NANA shareholders Protecting subsistence way of life Long life, world class zinc mine 16
Biodiversity: Achieving a net positive impact Achieving a net positive impact: • Avoid impacts where possible • Minimize impacts that are unavoidable • Rehabilitate affected areas • Offset any residual impacts 2014 Highlights Completed Biodiversity Management Plans at 8 operations to date Completed significant land/habitat conservation actions in the Elk Valley and Quintette regions 17 17
Case Study Caribou Recovery Program • Supported regional multi- stakeholder initiative to address declining caribou in northeast BC • Caribou identified and transported to a remote, secure penning site to give birth • 9 calves born in protective shelter in 2014; 7 born in 2015 18
Water: Looking at the entire watershed • Moving towards a watershed-based approach to our use and management of water • Established company wide and site- specific water balances • Water conservation, reuse and recycling is a priority 2014 Highlights Operations have developed site-specific water targets. Government approval of our Elk Valley Water Quality Plan in British Columbia 19
Case Study Elk Valley Water Quality Plan • Developed a groundbreaking watershed-based approach to managing water quality near our five steelmaking coal operations in B.C. • Over 160 written feedback submissions received during consultation and 700 pieces of science-based advice from expert panel • Government-approved plan includes water treatment facilities, water diversions, R&D and monitoring 20
Energy: Improving efficiency, reducing emissions Importance of energy to Teck: • One of our most significant operational expenditures • Rising cost of carbon is a key issue for us to monitor and manage • Recognize industry’s role in reducing GHGs and addressing climate change 2014 Highlights Reduced GHG emissions by 170 kt to the end of 2014 Reduced energy consumption at existing operations by 1,050 terajoules since 2011 16.8 MW of alternative energy generation 21
Case Study Improving Efficiency, Reducing GHGs • Haul truck efficiency initiatives cut diesel use by 10M litres and GHG emissions by 30,000 tonnes per year • Diesel cost savings of ~$10M per year • Undertaking pilot project to evaluate converting haul trucks to LNG/diesel blend • Potential to reduce annual coal fleet fuel use by $27M, and GHG emissions by 35,000 tonnes 22
Performance and Path Forward 23
Sustainability Performance and Metrics Examples Community Energy • Percentage of local employees in senior • Direct and indirect GHG emissions management roles • Energy and carbon intensity for • Feedback received by Communities of steelmaking coal production Interest • Total energy use • Percentage of spending on locally based suppliers Our People Biodiversity • Voluntary turnover number by age and • Area reclaimed each year gender • Total area of disturbance to date • Total Recordable Injury Frequency • Lost Time Injury Frequency (LTIF) Water Materials Stewardship • New water use • Hazardous waste recycled on and off- site • Water reused/recycled • Non-hazardous waste recycled on and • Total water inputs/outputs off-site Visit www.tecksustainability.com to: access performance data, compare progress against our goals, and view material topics 24
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