Anglo American Plc · LSE:AAL
Anglo American — Investor Presentation (June 2014)
17 slides from Anglo American's investor presentation, Jun 18, 2014
Slide 1: Presentation to Socially Responsible Investment Analysts
PRESENTATION TO SOCIALLY RESPONSIBLE INVESTMENT ANALYSTS 18 JUNE 2014
Slide 2: Agenda
AGENDA • Safety briefing • Chairman’s welcome • Overview of key issues and Anglo American’s approach • 2013 performance • Q&A
Slide 3: Welcome
WELCOME SIR JOHN PARKER, CHAIRMAN
Slide 4: Overview of Performance
OVERVIEW OF PERFORMANCE MARK CUTIFANI, CHIEF EXECUTIVE
Slide 5: Sustainability and Mining
SUSTAINABILITY AND MINING Approximately $25 billion of mining projects are delayed or on hold due to sustainability and stakeholder issues • Mining in context: – Mining drives global GDP – Footprint is small relative to economic importance • Constituencies: – Shareholders – Employees – Stakeholders
Slide 6: Sustainability and Mining
SUSTAINABILITY AND MINING Good performance on sustainability issues is good for our business • The mining industry as a whole suffers from negative perceptions which both limit opportunities for investment and leave us subject to unduly onerous regulation and taxation • Poor management of environmen
Slide 7: Highlights
HIGHLIGHTS The benefits of our improvement work are starting to come through… Operating profit H2 • Group underlying operating profit of $6.6bn, up 6% 11.1 9.8 H1 • Underlying earnings down 7% to $2.7bn; EPS $ bn 6.3 6.6 $2.09 5.0 2.5 3.3 • Operating profit improvement driven by improving 3.8 3.3 pr
Slide 8: Focus on Returns - Attributable ROCE
FOCUS ON RETURNS - ATTRIBUTABLE ROCE TARGET IS 15% ROCE BY END OF 2016… Attributable ROCE(1) (%) and EBIT ($bn) 2012 to 2016 Target ($m) @ 30 June 2013 prices and FX Identified Defined Plans Achieved in 2013/Q1 2014 0.5 7.3 1.3 0.5 0.2 1.2 0.6 0.3 0.3 Focus 2014 0.9 0.6 H1 results 3.3 Delivery On Tr
Slide 9: Managing the Portfolio
MANAGING THE PORTFOLIO Focus on Tier 1 delivery and potential…Tier 2 consistency and potential… 2013 EBIT contribution in $bn Number of EBIT $bn operations 4.0- 3.8bn -40 3.0- -30 Increasing complexity with marginal benefit 2.0- -20 31 1.0- -10 19 0.7bn 19 0.1bn Tier 1 – Top Priority Tier 2 – Solid
Slide 10: Identifying Material Issues
IDENTIFYING MATERIAL ISSUES We validate our material sustainability issues with an external stakeholder panel Material Issues Our Approach Workforce health and safety Continued focus on implementing Anglo American standards. New operating model for mines will further enhance safety performance Human
Slide 11: Our People
OUR PEOPLE People are the business… • New organisational model and structures to support our business objectives, removing duplication of work and creating clarity – Grouping of commodities to recognise synergies – Centralising our marketing activity into hubs in key markets – Redesigning our Group
Slide 12: Safety
SAFETY Improved operating practices will drive the next step-change in safety • Fatality rates – we have a critical focus on management of major hazards • Total recordable rates continue to improve, reflecting good work on leadership and culture • In Q1 2014 Anglo American, for the first time ever,
Slide 13: Environment
ENVIRONMENT Successful management of environmental issues is yielding business benefits • Biggest environmental risks are water security, releases of pollution, tailings dam failure and the economic and physical impacts of climate change • Key progress points: – On track to meet or exceed our water,
Slide 14: Social Performance
SOCIAL PERFORMANCE Industry-leading social performance… • Seeking to address all aspects of social performance: − Capacity and capability at site level − Implementation of effective management systems, with a focus on human rights, engagement, metrics − Socio-economic development • New enterprise de
Slide 15: Socio-Economic Development: Leveraging Our Core Business for More Effective and Efficient Impact
SOCIO-ECONOMIC DEVELOPMENT: LEVERAGING OUR CORE BUSINESS FOR MORE EFFECTIVE AND EFFICIENT IMPACT A focus on leveraging our core business limits CSI cost… • Leveraging our $16.1 billion supply chain (over Local Procurement 100 x CSI budget) * • Ensuring that host communities have the best Local Train
Slide 16: Concluding Remarks
CONCLUDING REMARKS • Our performance is improving across the key dimensions of sustainability • Sustainability considerations have been built into the Driving Value transformation programme: – Efficiencies in how we manage sustainability issues are being identified and realised – Sustainability issu
Slide 17: Q&A
Q&A