Anglo American Plc · LSE:AAL

Anglo American — Bank of America Merrill Lynch 2016 Global Metals, Mining & Steel Conference

16 slides from Anglo American's conference presentation, May 10, 2016

  1. Slide 1: The New Anglo American

    THE NEW ANGLO AMERICAN Bank of America Merrill Lynch 2016 Global Metals, Mining & Steel Conference: 10 May 2016

  2. 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

  3. Slide 3: The New Anglo American

    THE NEW ANGLO AMERICAN  CORE PORTFOLIO - De Beers, PGMs and Copper.  NON-CORE PORTFOLIO - managed for cash or disposal.  FREE cash flow POSITIVE IN 2016.  NET DEBT target < $10bn by end 2016.  CAPITAL DISCIPLINE as cash flow improves in 2017 and beyond. 3

  4. Slide 4: Our Core Portfolio

    OUR CORE PORTFOLIO 2015 EBITDA vs. Revenue ($bn)(1) QUALITY ASSETS De Beers 2015 EBITDA ($bn) Copper  Long-life, low-cost and scalable. Samancor Kumba Coal - Australia Platinum Nickel Cerrejón Coal - South Africa (2)  Sustainably free cash flow positive. Niobium & Phosphates Cu.Eq Production 250kt

  5. Slide 5: Reduced Portfolio Complexity

    REDUCED PORTFOLIO COMPLEXITY 70 68 Core Portfolio De Beers(1) Platinum Copper 45  Jwaneng  Mogalakwena Chile  Los Bronces Botswana # of mines  Orapa  Amandelbult 35  Collahuasi South  Venetia South • BRPM Africa Africa • Mototolo • Voorspoed • Debmarine Projects • Quellaveco 16 • Modikwa Nami

  6. Slide 6: Balanced Portfolio Exposure

    BALANCED PORTFOLIO EXPOSURE Core EBITDA by commodity (pro forma 2016)(1) EBITDA by demand driver (pro forma 2016) Platinum 31% Diamonds 13% 42% Infrastructure 26% 27% Copper Core revenue by destination (pro forma 2016)(2) Consumer 46% 78% RoW 19% 21% North America Industrial 13% EU 14% Energy 12% 29

  7. Slide 7: De Beers – Best Assets in Attractive Commodity

    DE BEERS – BEST ASSETS IN ATTRACTIVE COMMODITY Diamond mining industry margin curve UPSTREAM LEADERSHIP  Best-in-class mining assets – large, long-life, Ratio of C1 costs to revenue 1.2 De Beers Assets scalable and low cost. 1.0 0.8  Strong government partnerships – Botswana 0.6 and Namibia. 0.4 0

  8. Slide 8: Platinum – Best Platinum Portfolio

    PLATINUM – BEST PLATINUM PORTFOLIO Platinum net cash cost curve – 2015(1) PLATINUM LEADERSHIP Net cash cost (US$/Pt oz) AAP Mines/JVs for exit  The Tier 1 portfolio of assets. Modikwa Unki  Mogalakwena lowest-cost primary producer. By-product Mototolo Amandelbult  Scalable production base with lo

  9. Slide 9: Copper – Highly Competitive Position with Growth

    COPPER – HIGHLY COMPETITIVE POSITION WITH GROWTH Top 10 Producing Mines (2015 Cu kt) WORLD CLASS ASSETS Escondida  Attractive combination of scale, life and cost positions. Morenci Collahuasi Chuquicamata  Extensive high-quality resources underpin organic El Teniente growth opportunities. Los Bron

  10. Slide 10: Asset Quality – Underpins Long Term Return Potential

    ASSET QUALITY – UNDERPINS LONG TERM RETURN POTENTIAL De Beers Platinum Copper Production capacity of at least 35m carats Focus on high margin Mogalakwena Long-term potential to double production Gahcho Kué - ~4.2m carats (100%) Mogalakwena – expansion >600koz Quellaveco project Venetia underground p

  11. Slide 11: Performance Improvement to Date

    PERFORMANCE IMPROVEMENT TO DATE Safety - Fatalities SAFETY – improved 60% to 2015 13  Fatal incident rates lower than top 5 companies …first time in 99 years. 6 7 1 2 2012 2015 Q1 2016 Production per employee: Cu equivalent (Index 2012= 100) PRODUCTIVITY – up 30% since 2012 120 130 100  Operating

  12. Slide 12: Drivers to Positive Free Cash Flow in 2016 & Beyond

    DRIVERS TO POSITIVE FREE CASH FLOW IN 2016 & BEYOND 2016 $1.9bn improvement – split by BU (%) Lower Capital expenditure ($bn)(1) 6.0 Copper Corp./Exp. 5% $1bn 16% Platinum 3.3 4.0 16% $0.5bn <3.0 1.9 NNP 16% ~2.5 0.9 0.7 5% 26% Coal De Beers 1.9 16% 1.4 Kumba 2014 2015 2016F 2017F Project spend Stri

  13. Slide 13: Targeting $3-4bn of Disposals in 2016

    TARGETING $3-4BN OF DISPOSALS IN 2016 More advanced Transactions announced Rustenburg Australian Coal (Callide, Dartbrook, Foxleigh) Some combination of Niobium & Phosphates these is expected to contribute to the Moranbah & Grosvenor $3-$4bn target for 2016. Nickel SA Coal - Domestic Cerrejón Austra

  14. Slide 14: Targeting Net Debt of Below $10bn by End 2016

    TARGETING NET DEBT OF BELOW $10BN BY END 2016 Target Net Debt Evolution DEBT IMPERATIVES  Medium-term target - solid investment grade rating. $12.9bn $3-4bn − <2.5 x EBITDA at net debt.  End 2016 net debt target of <$10bn. <$10bn To come from cash generation and disposals ~$6bn 2016 DELIVERABLES 

  15. Slide 15: Driving Change…Defining Our Future

    DRIVING CHANGE…DEFINING OUR FUTURE 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…  Planned $1.9bn of cost and business improvements vs 2015.  Forecast $4.8

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