Anglo American Plc · LSE:AAL
Anglo American — Investor Presentation (December 2021)
46 slides from Anglo American's investor presentation, Dec 10, 2021
Slide 1: Investor update, 10 December 2021
Investo 10 December 2021 Anglo American
Slide 2: Cautionary statement
Cautionary statement Disclaimer: This presentation has been prepared by Anglo American plc (‘Anglo American’) and comprises the written materials/slides for a presentation concerning Anglo American. By attending this presentation and/or reviewing the slides you agree to be bound by the following con
Slide 3: Our 'WeCare': Covid and resilience
Our ‘WeCare’: Covid and resilience Responsible & holistic approach protecting lives & livelihoods in our workforce & commu Robust operating protocols & controls Rigorous testing approach Mental health support Active support to drive vaccine uptake Anglo American
Slide 4: SHE performance - drive for a safe & healthy future
SHE performance - drive for a safe & healthy future Safety Health Environment — Group TRCFR'? [ij Fatalities’ 2016 2017 2018 2019 2020 YTD 2021 Elimination of Fatalities Taskforce ..driving our improvement journey Culture focus on behaviours ..fequired for step to zero and sustainability Anglo Ameri
Slide 5: Driving towards a sustainable future
Driving towards a sustainable future Greener World Cu Eq production® Electrified World Consumer World Future Le » Diamonds Copper PGMs Nickel & manganese Crop nutrients High quality iron ore Met coal Thermal coal Anglo American Transition enabling Exit announced or complete
Slide 6: By 2040 - operations carbon neutral & 50% cut in Scope 3
By 2040 - operations carbon neutral & 50% cut in Scope 3 Operations carbon neutral by 2040 Scope 1&2 CHG emissions 1030 goal - 30% reduction of 2016 2018 2 2022e 20240 «= 2026e ~—=«-202Re ©2080 ©0328 © 20B4e «2086020380. Bi Fossifucls Ml Elecicity purchased [ll Diesel [ll Fugiive ethene emissions ll
Slide 7: 2021 - solid performance, reiterating operating guidance
2021 - solid performance, reiterating operating guidance Diamonds Base Metals PGMs ui} Rh Pa A = aT 78 Ir Pt i | iridium Platinum Ongoing demand recovery Solid Copper performance Production on track Robust Iron Ore performance Strong YTD sight sales Los Bronces water challenges Strong ACP performanc
Slide 8: Slide 8
Slide 9: Balanced, disciplined and sustainable approach
Balanced, disciplined and sustainable approach Cash returns Attractive growth (e) $10.3bn ~18% Dividends & buybacks since 2017 Production growth by ~20235 Resilient balance sheet Strong margin 0.1x ~45-50% H1 2021 Net debt:EBITDA® Target mining EBITDA margin’® Anglo American
Slide 10: 2021 full year guidance
2021 full year guidance Capex"! H2 cash returns ~$5.2bn Lower due to Covid deferrals Unit cost, FX neutral’ ~$4bn Ordinary, special & buyback $0.7 bn of $1bn buyback completed!2 Production “ 10% Due to above CPI inflation & production disruptions Up 16% on total basis Anglo American SS 7% Driven by
Slide 11: Capex continues to be impacted by Covid
Capex continues to be impacted by Covid Capex"! $bn Woodsmith Collahuasi . decal 2021 impacted by Covid delays Growth & supply chain disruption Lifex ~$0.8bn carried over to future years SIB increases driven by major investment projects Baseline ae pro) ini + Lifex sustaining ~$3.0bn long-term SIB I
Slide 12: Inflationary pressures offset by volume increases
Inflationary pressures offset by volume increases 2022 forecast unit costs '% NS -4% Higher inflation and input costs offset higher production volumes Inflation ~O% Above CPI inflation set to continue Anglo American General inflationary pressures: * Input cost prices * Supply chain disruption * Tax
Slide 13: Cost and volume target increased by $0.5 billion
Cost and volume target increased by $0.5 billion 2021F delivery vs 2017 Delivered improvement Anglo American $3.5-4.5bn (prev. $3.0-4.0bn) Upto $2.5bn 2023 target Projects: 2022-23 Quellaveco Marine Diamonds Namibia Technology & Innovation: 2020-23+ v Predictive Maintenance Bulk Ore Sorting rollout
Slide 14: Value-adding, future-enabling growth
Value-adding, future-enabling growth >90% growth capex ~50% margin® allocated to future-enabling products projects focus on high quality, low-cost assets Cu Eq production® +35% 18% (prev. 20%) Baseline portfolio ~2023 ~2025 ~2030° MM Met Coal Ml lron Ore ME PGMs Ml Copper Hl Crop Nutrients 4 Anglo A
Slide 15: Simple conversion of existing divider. Looks a bit old fashioned now I think
Simple conversion of existing divider. Looks a bit old fashioned now I think compared to the rest of the fresh, modern style
Slide 16: Innovative technologies in development
Innovative technologies in development Anglo American Advanced Process Control ¥ Delivered at Minas Rio, Los Bronces, Kumba & Mogalakwena + Upto 40% improvement in stability & productivity Bulk Ore Sorting v Deployed in Copper, Nickel and PGMs + Potential grade uplift 5%-20% + Energy, water and cost
Slide 17: Met Coal operations set to ramp back up
Met Coal operations set to ramp back up Production * Moranbah back uprunning; Grosvenor restart prep completed * 2022 guidance 20-22Mt, with focus on safety & stability * 2022 unit costs of ~$80/t High quality product * Premium products: ~85% premium HCC and ~15% PCI" Moranbah-Grosvenor debottleneck
Slide 18: Building a world class copper business
Building a world class copper business Anglo American Strong fundamentals + Three world class assets, each with significant endowment options Disciplined growth with future potential * Quellaveco, long life, low cost greenfield project * Collahuasi implementing the 5" ball mill * Los Bronces undergr
Slide 19: Quellaveco remains on time and on budget
Quellaveco remains on time and on budget Quellaveco Greenfield copper project v Ontrack for 2022 delivery despite Covid challenges + First ore delivered October 2021 + Processing plant - Line 1 nearing completion + Water dam complete - provider of fresh water to communities * 100% renewable electric
Slide 20: Quellaveco looking ahead
Quellaveco looking ahead ~12 month ramp up Mid 2022 First production Commercial production 2023 Future Expansion options * Ontrack * Ontrack * Mid & long term Guidance 2022F 2023F 2024F yv_ ~10% CuEq growth (~300ktpa’’) Production (kt) ( 120-1 60 320-370 320-370 vy Since approval, first 5 years’ uni
Slide 21: Woodsmith project update
Woodsmith project update Woodsmith fr Mining method Ventilation Marketing Prior design Hybrid model Scheduled post =‘ Value in use possible estimated expansion . Anglo American — Continuous Required earlier Value in use . assumption miner due to mining opportunities method identified . Anglo America
Slide 22: Quality portfolio complemented by high value growth options
Quality portfolio complemented by high value growth options” Moranbah-Grosvenor (Metallurgical Coal) - ~2025 Mogalakwena (PGMs) - ~2025 ~$0.3bn capex onwashplant >15% IRR +2.5Mtpa saleable tonnes Number of options being considered Studies expect to complete H1 2022 World class resource with 50 yr as
Slide 23: Ongoing shaping of the Discovery portfolio
Ongoing shaping of the Discovery portfolio Focused on future-enabling metals & minerals: copper, nickel and PGMs Leading Mineral Systems Science District-scale positions in compelling search space Zambia - ” ey _-® South Africa v ? - ° @B Highlighted Anglo American Discovery presence Portfolio diver
Slide 24: Our investment proposition
Q&A Our investment proposition Differentiated capabilities Competitive Sustainable assets returns Strong cost position Technology-led $3.5-4.5bn EBITDA improvement +35% long term growth? Sustainability leader Disciplined capital allocation To ask a question, Standard International Dial-in: UK +44 (0
Slide 25: Footnotes
PON 29 1 Footnotes Recordable incidents. Data relates to subsidiaries and joint operations over which Anglo American has management control. Since 2018 data for fatalities, TRCFR and environmental metrics excludes results from De Beers’ joint operations in Namibia and Botswana. Total Recordable Case
Slide 26: AngloAmerican
AngloAmerican
Slide 27: Guidance summary
Guidance summary Earnings (numbers in brackets are previous guidance) Capex' (numbersin brackets are previous guidance) Other (numbers in brackets are previous guidance) Volumes See slide 28-29 Unit costs See slide 30 2021 depreciation Pec 2022 depreciation $3.0-3.2bn - 31-33%" 2021 effective tax ra
Slide 28: Production outlook
Production outlook Units 2019 2020 2021F 2022F 2023F —-2024F (new) Diamonds’ Met 31 25 ~32 30-33 30-33 30-33 Copper? kt 638 647 650-660 (pres 200 950) (ores ae 910-1,020 Platinum Group Metals? Moz 44 38 ~43 (prev 2.48) (prev 48) 41-45 Iron ore* Mt 66 61 prev oe 3 (prev. 65. os 67 (prev. 66. 0498 677
Slide 29: Production outlook — supplementary guidance
Production outlook — supplementary guidance Units 2019 2020 2021F 2022F 2023F 2024F (new) Chile: 560-600 ; (prev.580-640) Chile:590-650 Chile: 590-650 Copper kt 638 647 650-660 (290- Peru:120-160 Pe"¥:320379 bey: 320-370 (prev. 100-150) Pt 1.8 Pt:~2.0 pdieaa bhteaa Pt: 1.9-2.1 Platinum Group Metals-
Slide 30: Unit costs performance by Business Unit
Unit costs performance by Business Unit De Beers (US$/ct)' 2020 2021F 2022F Iron Ore (FOB US$/t)* ~34 E 2020 2021F 2022F Copper (C1 USc/Ib)? 2020 2021F 2022F Met Coal (US$/t)> Ei 380 2020 2021F 2022F PGMs (US$/PGM oz)* Bee 2020 2021F 2022F Nickel (C1 USc/Ib)é ~450 2020 2021F 2022F Note: Unit costs a
Slide 31: Capex continues to be impacted by Covid (new and previous guidance)
Capex continues to be impacted by Covid (new and previous guidance) Capex'($bn) 1.2-1.7 (prev. 1.5-2.0) mE OaiES) Woodsmith : (prev. 1.5-2.0) Collahuasi desal 1.2 =O.) pe. 0 Collahuasi Growth ery ~07 desal —> (prev.-0.9) Lifex ~05 (prev. ~0.6) Baseline sustaining 2021F 2022F 2023F 2024F Long-term I
Slide 32: Life extension capex
Life extension capex Major components of lifex' ($bn) Guidance ~0.5 Kolomela (Iron Ore) Venetia (Diamonds) ~0.2 03 Mototolo (PGMs) OS OS Aquila (Met Coal) 2021F 2022F 2023F 2024F Lifex projects - subject to disciplined capital allocation framework Capex (pa) Volume (pa) From! LOM extension Forecast
Slide 33: Breakdown of projects driving growth capex
Breakdown of projects driving growth capex Major components of growth capex'($bn) Guidance ~1.2 1.0-1.5 1.2-1.7 1.5-2.0 +0.6 Woodsmith +0.7 Woodsmith Namibia (Diamonds) Mogalakwena (PGMs) Quellaveco (Copper) ~ Sishen (Iron Ore) Ape Collahuasi Phase 1° (Copper) Moranbah-Grosvenor (Met ac) Technology
Slide 34: Attractive greenfield and brownfield options
Attractive greenfield and brownfield options Growth capex’ ($bn) Long life greenfields and fast returning brownfields Capex Volume (pa) From! Forecast Returns Payback IRR Margin Quellaveco (Copper) $2.7bn to $2.8bn2 +300kt2 2022 ~4 years >15% >50% Marine Namibia (Diamonds) ~$0.2bn> +0.5Mct® 2022 ~3
Slide 35: Quellaveco financial modelling
Quellaveco financial modelling Ownership Anglo American 60%, Mitsubishi 40% Fully consolidated with a 40% minority interest Shareholder loans from minority shareholder consolidated in Anglo American net debt Accounting treatment Project capex (nominal)! $5.3-5.5 billion (100% basis - Anglo American
Slide 36: Quellaveco accounting - ramp up & commercial production
Quellaveco accounting - ramp up & commercial production First ore, ramp up and commissioning 2022 Production C1 unit cost - nominal Accounting treatment considerations First ore: October 2021, Commissioning: mid-2022 followed by 12-month ramp up 120-1 60kt (prev. 100-150kt) ~$1.25/lb! * Inventory re
Slide 37: Quellaveco accounting - debt
Quellaveco accounting - debt After the initial $0.8bn equity injection by Mitsubishi, the project is now funded 60:40 through shareholder debt Group net debt by the end of the project is expected to include ~$1.9bn debt from Mitsubishi (40% of shareholder debt); whichis funded from their 40% share o
Slide 38: Simple conversion of existing divider. Looks a bit old fashioned now I think
Simple conversion of existing divider. Looks a bit old fashioned now I think compared to the rest of the fresh, modern style
Slide 39: Our Purpose 'Re-imagine mining to improve people's lives'
Our Purpose ‘Re-imagine mining to improve people’s lives’ Technology & Digitalisation Sustainability Sustainable Mining Plan & eaty BS 88 Taner environment communities Concentrating Water-less iti the Mine™ Mine Trusted corporateleader Collaborative Regional Development RY 3 3 ae. } Regional GP span
Slide 40: Our Sustainable Mining Plan at the heart of our strategy
Our Sustainable Mining Plan at the heart of our strategy Social Governance I [— Trusted TT Environment | I O Healthy Environment ©] climate change QZ) Biodiversity &Q. Health and wellbeing [Ey Policy advocacy © Livelihoods ge Ethical value chains Thriving Communities 0 Q] 0 Corporate Leader 2 Accoun
Slide 41: Active route to a greener world
Active route to a greener world 2020 2021-22 2030 2040 ?- + + + 8% SAThermal Coaldemerger 30% 30% Carbon completed - , : neutral ity energy improvement in absolute reduction efficiency! Cerrejon sale of shareholding Vv energy efficiency? in GHG emissions? across our in progress . operations* 22% 100
Slide 42: Operations carbon neutral by 2040
Operations carbon neutral by 2040 Scope 1 &2- GHG emissions South America renewable energy Three Solar PV plants in South Africa _ 2030 goal- 30% reduction of GHG emissions vs 2016! Hydrogen trucks pilot Regionally integrated solar and wind in South Africa Southern Africa electrical supply predomina
Slide 43: Ambition: 50% reduction in Scope 3 emissions by 2040
Ambition: 50% reduction in Scope 3 emissions by 2040 Scope 3 GHG emissions p74 Production | | growth in future | I enabling Thermal coal | | duct mines divested | | prea’ | ! Our ambition: 14 50% Met coal reduction lron ore Production growth Steel value chain outpaces steel value decarbonisation cha
Slide 44: Summary inventory of our Scope 3 emissions
Summary inventory of our Scope 3 emissions Scope 3 - GHG emissions 115Mmt 77% of our emissions driven by steelindustry : Total Scope 3 emissions Leased Investments Capital Business Transportation Use of sold assets goods travel & distribution products Purchased Transportation Franchises Operational
Slide 45: A sustainable, responsible & transparent business
A sustainable, ESG ratings responsible & transparent business Momoerot Dow Jones Sustainability Indices Fonsroby na SAP Global A 78/100 Only diversified miner to be included in both European & World Index (top 10% of global companies) a ©) sustainatytics MSCl ae ‘A’ rated ‘Prime’ rated Joint top div
Slide 46: Simple conversion of existing divider. Looks a bit old fashioned now I think
Simple conversion of existing divider. Looks a bit old fashioned now I think compared to the rest of the fresh, modern style
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