Anglo American Plc · LSE:AAL
Anglo American — Anglo American Platinum — Johannesburg Indaba 2016
21 slides from Anglo American's conference presentation, Oct 5, 2016
Slide 1: South Africa's Platinum Mining Industry: Stimulating Platinum Demand
SOUTH AFRICA’S PLATINUM MINING INDUSTRY WHAT IS BEING DONE TO STIMULATE PLATINUM DEMAND Johannesburg Indaba – Wednesday 5th October Chris Griffith CONFIDENTIAL 1
Slide 2: Recap – The End Use Sectors for Platinum
Platinum end use share RECAP – THE END USE SECTORS FOR PLATINUM Over 40% of total platinum The automotive sector Demand is from the automotive sector accounts for ~60% of the PGM value pool Demand end use shares, 2016f Price 1092 684 630 (USD/oz) Gross % of Demand Pt Pd Rh Value (2015) Autocat 3 076
Slide 3: Platinum Automotive Market Overview
Automotive recap PLATINUM AUTOMOTIVE MARKET OVERVIEW AUTOMOTIVE MARKET EXPECTED TO GROW Forecast annual light duty vehicle production (millions) (17) 120 11m • Internal combustion engine market expected to 100 grow despite lower market share in the future 3m 80 85m • PGM demand forecast to be robust
Slide 4: The Role of the Platinum Guild International (PGI)
Jewellery demand growth HOW IS THE INDUSTRY STIMULATING DEMAND FOR PLATINUM JEWELLERY THE ROLE OF THE PLATINUM GUILD INTERNATIONAL (PGI) • The PGI is an organisation funded by leading South African platinum producers and refiners • Founded in 1975, PGI has been providing information, sales support a
Slide 5: Historical Track Record in Growing Demand for Platinum Jewellery
Jewellery demand growth HISTORICAL TRACK RECORD IN GROWING DEMAND FOR PLATINUM JEWELLERY China and India being the US$ gain in China over nominal GDP markets with the highest growth potential Rest Of World: 7% Japan: 10% USA: 7% India: 6% China: 69% Platinum jewellery market share by region Jeweller
Slide 6: China: Market Development Strategy
Jewellery demand growth CHINA: MARKET DEVELOPMENT STRATEGY LEVERAGING PLATINUM’S STRENGTH IN BRIDAL TO EXPAND ACQUISITION ACROSS A LIFETIME OF LOVE GIFTING OCCASIONS Mom to Post BF to GF Bridal Marriage Tier 1-3 Daughter Urban 30m 21m 4.2 mpa 45m population Giver Parent Boyfriend Husband Husband Occ
Slide 7: Plenty of Room to Grow Platinum Demand in Core Jewellery Demographic
Jewellery demand growth WHAT THE RESEARCH INTO THE JEWELLERY MARKET SHOWS US PLENTY OF ROOM TO GROW PLATINUM DEMAND WITHIN CORE JEWELLERY DEMOGRAPHIC BY LEVERAGING PLATINUM’S STATUS AS A SYMBOL OF LOVE 2m ounces per year @ average 4g per piece of 16m pieces of jewellery @ average 1.4 platinum jewell
Slide 8: India: A Market with Extraordinary Potential
Jewellery demand in India WHAT THE RESEARCH INTO THE JEWELLERY MARKET SHOWS US INDIA: A MARKET WITH EXTRAORDINARY POTENTIAL Indian platinum jewellery The oldest civilization is home to the youngest population market has grown 10 times in 7 years • 70% of the population < 45 years Year Troy Ounces Br
Slide 9: Unlocking the Indian Wedding Market with Platinum Evara
Jewellery demand in India UNLOCKING THE INDIAN WEDDING MARKET WITH PLATINUM EVARA – ENGAGING INDIA’S MODERN BRIDE *70% OF THE POPULATION < 45YEARS The platinum promise: Consumer Blessings of eternal love Brand Platinum: Wedding occasion accounts for Symbol of love | Modernity | 60% of the market Sta
Slide 10: Platinum Evara – Video
Jewellery demand in India UNLOCKING THE INDIAN WEDDING MARKET WITH PLATINUM EVARA – VIDEO “MY DAUGHTER IS AS PRECIOUS AS A SON, HER WEDDING IS NOT ABOUT GIVING HER AWAY BUT WELCOMING A NEW SON AND EXPANDING OUR FAMILY” Evara programme tapping unmet needs in bridal journey CONFIDENTIAL 10
Slide 11: Leveraged Marketing by the PGI
Jewellery demand growth LEVERAGED MARKETING BY THE PGI Campaign examples from around the world selling CONFIDENTIAL 11
Slide 12: WPIC Focuses on Developing the Platinum Investment Market
Investment demand WPIC FOCUSES ON DEVELOPING THE PLATINUM INVESTMENT MARKET • Provide investors with objective and reliable platinum market data and insights • Stimulate investor demand for physical platinum through targeted market development • Members: Anglo Platinum, Aquarius*, Impala, Lonmin, No
Slide 13: WPIC Support Market Development Through Investment Product-Driven Demand Growth
Investment demand WPIC SUPPORT MARKET DEVELOPMENT THROUGH INVESTMENT PRODUCT-DRIVEN DEMAND GROWTH WPIC mandate • Global access to investors, regulators and partners • Impartial addressing of investor concerns allows • Active engagement to achieve improved market commentary • Targeted product and mar
Slide 14: WPIC-Valcambi Partnership for Platinum Bar Holdings
Investment demand WPIC- VALCAMBI PARTNERSHIP FOR PLATINUM BAR HOLDINGS • Valcambi – leading global precious metals refiner • Global funding, stocking and marketing partnership with WPIC commenced • Partnership enhances the Valcambi distribution network’s ability to offer platinum and effectively pre
Slide 15: WPIC & BullionVault Create an Online Market Place
Investment demand WPIC & BULLIONVAULT CREATE AN ON-LINE MARKET PLACE • BullionVault is the world’s biggest online marketplace for buying, selling and storing physical gold and silver bullion • More than 60,000 private investors from around the world have invested in gold or silver through BullionVau
Slide 16: Platinum Coins – Filling the Gap Between Listed and Physical Metal
Investment demand PLATINUM COINS – FILLING THE GAP BETWEEN LISTED AND PHYSICAL METAL HOLDINGS • Bullion coin custodial certificates licensing agreement with Rand Merchant Bank • The Vienna Philharmonic is a range of coins produced by the Austrian Mint • Through the WPIC’s activities, a platinum coin
Slide 17: WPIC and Mitsubishi Lift Promotion of Platinum ETF in Japan
Investment demand WPIC AND MITSUBISHI LIFT PROMOTION OF PLATINUM ETF IN JAPAN Japan ETF assets and platinum price (yen/g) • Japan is a key hub for precious metals investment Pt price yen/g • ‘Fruit of Platinum’: Mitsubishi UFJ Trust and Banking Corporation (MUTB) • ETF growth in addition to signific
Slide 18: Anglo American Platinum's Market Development Activities
AAP Market Development ANGLO AMERICAN PLATINUM’S MARKET DEVELOPMENT ACTIVITIES Overview of our existing market development activities FC : Fuel cell Leveraged funding Direct into Indirect investment and/or Investment universities/ Direct investment Equity investment advocacy programmes, leveraging m
Slide 19: Direct Investment in Promising Technologies That Create Demand for PGMs
AAP Market Development DIRECT INVESTMENT IN PROMISING TECHNOLOGIES THAT CREATE OR FACILITATE DEMAND FOR PGMS - Strategic investment in technologies that Fuel cells Investment create or facilitate the demand for PGMs focus Platinum - R1.5B fund Fuel cells PGM - Market related returns Platinum investm
Slide 20: Mass Adoption of Fuel Cells Dependent on Overcoming 3 Barriers
AAP Market Development MASS ADOPTION OF FUEL CELLS BROADLY DEPENDANT ON TIMEOUSLY OVERCOMING 3 BARRIERS Infrastructure accessibility Consumer acceptance Cost competitiveness Supporting infrastructure must be Consumer perception around safety, Fuel cells applications must achieve convenient and acces
Slide 21: Closing Remarks
Market Development CLOSING REMARKS Past performance has shown the success of market development Industry supported development focuses on jewellery, investment and industrial market development Hyundai Fuel Cell Electric Vehicle Development won’t happen by chance and needs active programmes and mark