Anglo American Plc · LSE:AAL
Anglo American — Shareholder Meeting (April 2016)
14 slides from Anglo American's shareholder meeting presentation, Apr 21, 2016
Slide 1: Annual General Meeting 2016
ANNUAL GENERAL MEETING 2016 MARK CUTIFANI – CHIEF EXECUTIVE 21ST April 2016
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: Full Year Results 2015 – Operating Performance
FULL YEAR RESULTS 2015 – OPERATING PERFORMANCE
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS Commodity price headwinds dominate results… Underlying EBIT $2.2bn -55% ...commodity prices down 24%. EPS $0.64 -63% …........finance costs impacting. Cost reduction $1.0bn ....unit costs down 16% in US$. Capital expenditure $4.0bn -33% ….....in control SIB efficiencies.
Slide 5: Safety and Environment
SAFETY AND ENVIRONMENT Our performance improvement is led by people…for people… Loss of life (by business) SAFETY 17 Best safety performance in a full production year. 15 13 Q4 fatality free – 1 fatal incident in H2. 6 6 Modernisation strategy will support ongoing broad- 12 7 6 3 based safety
Slide 6: Operating Performance – Production
OPERATING PERFORMANCE – PRODUCTION Modest increase despite continuing cost focus and asset level restructuring… FY 2015 versus FY 2014 (% change) 25% 9% 5% 1% (1)% (3)% (12)% (19)% Nickel De Beers SA export coal & Copper (1) Met Coal Iron Ore (2) Platinum(3) Group Total Cerrejón (1) Copper normalise
Slide 7: Unit Costs – Supported by Productivity Improvements
UNIT COSTS – SUPPORTED BY PRODUCTIVITY IMPROVEMENTS Significant productivity improvements support cost reductions… Cu Equivalent production, unit cost & productivity 2015 vs 2014 Unit cost variance 140 (US$) 127 in Q4 2015 120 120 100 80 -6% 73 -13% -9% -9% 60 -23% (16%) average Cu equiv. 40 -28% 20
Slide 8: Q1 2016 Performance
Q1 2016 PERFORMANCE
Slide 9: The New Anglo American
THE NEW ANGLO AMERICAN
Slide 10: The New Anglo American
THE NEW ANGLO AMERICAN CORE PORTFOLIO of De Beers, PGMs and Copper… Global leadership in diamonds and platinum and a high quality copper business. World class suite of assets. FREE cash flow POSITIVE IN 2016 at spot prices and FX… Planned $1.9bn of cost and business improvements vs 2015. For
Slide 11: Our Core Business
OUR CORE BUSINESS Relative earnings contributions driven by scale and quality… QUALITY ASSETS 2015 EBITDA Margin (%)(1) Long life, low cost and scalable. +30% Step change in EBITDA margin for core. 23% Sustainably free cash flow positive. 30% UNIQUE END MARKET EXPOSURE Consumer exceeds infra
Slide 12: Reduced Complexity
REDUCED COMPLEXITY Large, scalable resource and low cost operations… 55 55 50 45 45 De Beers(1) Platinum Copper 40 Jwaneng Mogalakwena Chile Los Bronces 35 Botswana Orapa Amandelbult Collahuasi 30 # of mines South Venetia South • BRPM 25 Africa Africa • Mototolo • Voorspoed Projects •
Slide 13: The Disposal Processes
THE DISPOSAL PROCESSES Targeting disposals of $3-4bn for value by end of 2016… More advanced Niobium & Phosphates Some combination of these is expected to contribute to the Nickel $3-4bn target for 2016 Moranbah & Grosvenor Australian Coal - Other SA Coal - Domestic Cerrejón Platinum - non-core SA C
Slide 14: Annual General Meeting 2016
ANNUAL GENERAL MEETING 2016 MARK CUTIFANI – CHIEF EXECUTIVE 21ST April 2016