Anglo American Plc · LSE:AAL
Anglo American — ESG Presentation (June 2010)
35 slides from Anglo American's sustainability presentation, Jun 22, 2010
Slide 1: Delivering Sustainable Value – 2009 Sustainable Development Performance
22 June 2010 Delivering Sustainable Value – 2009 Sustainable Development Performance
Slide 2: Agenda
Agenda 11. Chairman’s Overview – Sir John Parker, Chairman 22. Overview of the Year – Cynthia Carroll, Chief Executive 33. Investment of Choice – Cynthia Carroll, Chief Executive 44. Partner of Choice – Anji Hunter, Group Head of Government and Social Affairs and Dorian Emmett, Group Head of Safety
Slide 3: Chairman's Overview
Chairman’s Overview AMERICAN
Slide 4: Chairman's Overview
Chairman’s Overview Safety and sustainable development remain a priority for Anglo American throughout the economic cycle • Economy – medium and long-term outlook remains strong • Continuing importance of sustainable development • Safety performance • Boosting commitments to host communities • Busin
Slide 5: Overview of the Year
ANGLO AMERICAN Overview of the Year
Slide 6: Safety
Safety An unrelenting focus on safety is delivering results, with many examples of world class performance emerging across Anglo American • Fatalities reduced to 20 – 55 percent improvement over 2006 – Q1 2010 67% below Q1 2009 • LTIFR down to 0.76 – 52 percent improvement over 2007 • 92% of sites,
Slide 7: Social and environmental performance
Social and environmental performance Stakeholder relations Environment • Anglo Social Way rolled-out, • Number of level 2 environmental incidents benchmarking undertaken across the dropped from 143 in 2008 to 65 in 2009 Group • Anglo Environment Way self-assessments, • New government relations proce
Slide 8: Ethical safeguards
Ethical safeguards In 2009 we updated our Business Principles and launched a new Business Integrity policy to strengthen protection against corruption • Good Citizenship Business Principles updated and re-launched at annual suppliers conference in 2009 • New Business Integrity policy launched – Stre
Slide 9: Integrating safety and sustainable development
Integrating safety and sustainable development • Suite of four S&SD “Anglo Way” documents completed and implementation well under way – Anglo Safety, Occupational Health, Environment and Social Ways – Assessments against the new environmental and social standards completed at each operation in 2009
Slide 10: Strong operational performance in 2009
Strong operational performance in 2009 Decisive action taken to position the Group to benefit from the recovery • Group operating profit of $5.0 bn; EBITDA $6.9bn, EPS $2.14 • Higher volumes for Copper, Iron Ore, Platinum and Nickel • Significant restructuring achieved at Anglo Platinum and De Beers
Slide 11: New operating structure
New operating structure Divisional Headquarters • 7 focused business units – Copper, Nickel & Iron Ore Brazil in South America – Thermal Coal, Kumba Iron Ore & Platinum in South Africa HQ & Other – Met Coal in Australia Mining & Industrial • Management layer removed • Corporate headcount reduced by
Slide 12: Investment of Choice
Investment of Choice AMERICAN
Slide 13: A unique and well diversified portfolio
A unique and well diversified portfolio A well balanced portfolio across precious, bulks & base Anglo American core businesses 2009 revenue1 (US$b) 2009 Net Assets2 % Precious 33% Bulks Bulks 44% Precious Diamonds 44% Diamonds Iron Ore & 38% 4% 1.7 Manganese Iron Ore & 3.4 Manganese 29% Platinum Pla
Slide 14: Stable returns - even in turbulent times...
Stable returns - even in turbulent times... Outperforming the mining industry Historic Group net margin Op. profit Net Margin % Anglo operating profit US$b Anglo net margin 12 Industry net margin 30% 23% 24% 23% 10 25% 8 18% 20% 15% 15% 6 15% 10.1 10.1 9.8 4 6.4 10% 5.0 4.7 2 5% 0 0% 2004 2005 2006
Slide 15: Volume growth: A key differentiator
Volume growth: A key differentiator Projects will increase production by over 33% by 2013 Existing Approved Projects in Production + Projects + conceptual 200 stage 180 +90% Indexed production growth (2009 = 100) 160 140 120 +33% 100 Nickel 80 Copper 60 PGM 40 Met Coal 20 Thermal Coal Iron Ore 0 200
Slide 16: Partner of Choice
Partner of Choice & AMERICAN
Slide 17: Economic contribution
Economic contribution Despite the economic conditions we generated significant benefits for governments and other stakeholders
Slide 18: Economic contribution
Economic contribution Geographic distribution of economic benefits, 2009 (managed companies). Total taxes borne and collected of $2.9 billion
Slide 19: Community development
Community development We maintained our commitments to host communities, and continued to grow social investment resources at a time of greater need • CSI spend grew to $82.5 million – Up from $76 million in 2008 – 2.2% of pre-tax profits • Continue to grow our highly effective enterprise developmen
Slide 20: Anglo Social Way – underlying commitments
Anglo Social Way – underlying commitments The Social Way applies across the full lifecycle of our operations Respect human, IP, gender etc rights Identify and manage social impacts Engage employees and stakeholders Deliver lasting, positive net benefit Efficiently utilise resources Obey all laws and
Slide 21: Social performance
Social performance 2009 saw a significant strengthening of our social performance management systems • Anglo Social Way approved in April 2009 – World-class management systems – Benchmarking completed for all existing operations. 70% compliance overall with new standards. Improvement plans now in pl
Slide 22: Social – operational and project issues
Social – operational and project issues Social risks at operations and projects continue to be managed effectively • Michiquillay, Peru – Despite community vote in favour of exploration, access difficulties have delayed progress • Pebble Project, Alaska – Independent stakeholder dialogue process bei
Slide 23: Environment
Environment Consistent approach to environmental management • Anglo Environment Way – Sets out our ambition on environmental management – Vol 2: Performance Standards approved in 2009 – Benchmarking against standards completed in 2009 and improvement plans drafted • Mine closure – Focus on planning
Slide 24: Climate change and energy
Climate change and energy Disposal of non-core assets has reduced our carbon footprint. Energy efficiency and generation opportunities offer scope for value creation 24
Slide 25: Climate change and energy
Climate change and energy We continue to seek market and technology solutions to the challenges posed by energy security concerns and climate change • Energy efficiency programme – All sites to produce marginal abatement cost curves for energy and carbon – Energy saving projects to be integrated int
Slide 26: Water management
Water management Secure supplies of water are critical to our operations and projects • Like-for-like water consumption reduction of 6% achieved • 27 level 2 (medium priority) environmental incidents relating to water in 2009 • Reviewing expansion of eMalahleni treatment plant from 25 to 50 Ml per d
Slide 27: Land and waste management
Land and waste management Land stewardship integrates biodiversity and social issues • Land management – 981,154 ha under company charge – 85,415 ha disturbed due to mining – 11,650 ha rehabilitated to date • Biodiversity – 60 sites peer reviewed for biodiversity Rehabilitated land at Kleinkopje Col
Slide 28: Employer of Choice
Employer of Choice S AMERICAN
Slide 29: Safety
Safety 2009 saw a major improvement in our safety performance. We remain of the view that anything less than Zero Harm is unacceptable 29 NB LTI rate is per 200,000 hours
Slide 30: Safety
Safety Building on safety successes to date • Long term safety strategy developed, reflecting different levels of safety maturity across the group • Safety priorities 2009-2014 identified as competence and development, learning and improvement (from incidents and other internal and external sources
Slide 31: HIV/AIDS
HIV/AIDS Strengthened commitment HIV Indicators (31 March 2010) • Revised HIV/AIDS policy end 2008 No. of employees 70,741 – Extending HIV/AIDS prevention, care, support & treatment to employees’ dependents HIV prevalence 17% • Excellence Award for Thermal Coal from Est no. HIV +ve employees 12,238
Slide 32: Health
Health Ensuring the systems, infrastructure and understanding within the Group to prevent occupational disease and achieve zero harm to health • Holistic approach to health – Risk-based evaluation of fitness for work and medical surveillance; emphasis on Prevention – Access to Care, Support, Treatme
Slide 33: Human resources
Human resources Restructured Group has created headcount efficiencies, but with increased investment in future skills to prepare us for growth • Headcount reduction substantially complete • Retraining and other support offered to where appropriate – Anglo Platinum portable skills training • Investme
Slide 34: Diversity
Diversity We are continuing to enhance the diversity of our workforce around the world • Transformation in South Africa and women in mining remain the biggest issues • HDSAs in management in South Africa now 46% (up from 45% in 2008) • 5,700 South African employees benefited from ABET, 2,600 from po
Slide 35: Question and Answer Session
. . G Question and Answer Session & AMERICAN