Slide 1: 2010 Sustainable Development Performance
2010 SUSTAINABLE DEVELOPMENT PERFORMANCE Hosted by Sir John Parker, Chairman, and Cynthia Carroll, Chief Executive 25 May 2011
Slide 2: Agenda
AGENDA • Safety Briefing • Chairman’s Welcome • Chief Executive’s Review • 2010 Sustainable Development Performance • Biodiversity in Focus: Fauna & Flora International • Q & A Session
Slide 3: Chairman's Welcome
CHAIRMAN’S WELCOME SIR JOHN PARKER
Slide 4: Chief Executive's Review
CHIEF EXECUTIVE’S REVIEW CYNTHIA CARROLL
Slide 5: Continuing Our Drive to Zero Harm
CONTINUING OUR DRIVE TO ZERO HARM • Sustained focus on safety management Fatalities delivering further improved results 50 44 40 66% reduction 40 • LTIs more than halved since 2007 30 28 20 20 15 10 • Operations targeting Total Recordable Injury 0 improvements as broader indicator 2006 2007 2008 200
Slide 6: HIV/AIDS
HIV/AIDS • 12,000 employees in southern Africa HIV positive • 94% of employees in this region participated in voluntary HIV testing and counselling • 59% participating in HIV Disease Management Programme • Providing expertise and resources to strengthen community health systems • $3m pledged to the
Slide 7: Communities and Socio-Economic Development
COMMUNITIES AND SOCIO-ECONOMIC DEVELOPMENT • Continued strong progress in implementation of the Social Way in 2010. Only 15% non-compliance 2010 Social Way Compliance • Group-wide complaints and grievance procedure 50% launched in line with Ruggie recommendations 45% • Standardised set of output KPI
Slide 8: Anglo American: Real Mining. Real People. Real Difference.
AngloAmerican Real Mining. Real People. Real Difference.
Slide 9: Environment
ENVIRONMENT • New climate change and water policies published • Number of level two environmental incidents dropped from 65 to 61 • Water consumption lower • Energy consumption and CO2 emissions were slightly higher in 2010 • Biodiversity action plan peer reviews at seven sites • Reduce, reuse and r
Slide 10: Increasing External Recognition in 2010
INCREASING EXTERNAL RECOGNITION IN 2010 • Gold Class status in Dow Jones Sustainability Index • Platinum status in Business in the Community Corporate Responsibility Index • Prestigious national awards for safety including: –Barro Alto named as safest mine in Brazil –Isibonelo Colliery won Departmen
Slide 11: 2010 Financial Results
2010 FINANCIAL RESULTS • Group operating profit of $9.8bn, up 97% Operating Profit • Underlying earnings of $5bn and EPS $4.13, 6 5.4 5 4.4 93% increase 4 2.8 • Asset optimisation and procurement 3 2.1 programmes delivering $3bn, far exceeding 2 expectations 1 0 • $3.3bn of proceeds received from di
Slide 12: Strong Organic Growth in Most Attractive Commodities
STRONG ORGANIC GROWTH IN MOST ATTRACTIVE COMMODITIES 100% 200 Indexed production growth (2009 = 100) 180 160 50% 140 120 100 Nickel Copper 80 60 PGM 40 Met Coal Thermal Coal 20 Iron Ore 0 2009 2015 Outlook 12
Slide 13: Delivering Near Term Growth
DELIVERING NEAR TERM GROWTH Barro Alto, Brazil 13
Slide 14: Opportunities Ahead
OPPORTUNITIES AHEAD Approved Feasibility Future Growth Options Venetia 7 V6 Underground S 7S AS \Cerrejon Phase 1 Landau Replacement Elders New Vaal Waterberg oc&uG — Extension New m4 ~ Denmark Corrajon Phase 2 Limpopo rie! Extension Extension New Largo e lron Ore and Manganese e@ Copper e Platinum
Slide 15: Health and Safety
HEALTH AND SAFETY DORIAN EMMETT
Slide 16: Occupational Health
OCCUPATIONAL HEALTH • Management framework and system –Two new Group Standards addressing noise and inhaled hazards –Quality of existing controls and scale of risk assessed through independent audits • Continued focus on health incident reporting and performance improvement –Rise in number of low-le
Slide 17: HIV/AIDS
HIV/AIDS • Policy and approach HIV INDICATORS 2010 –More than 90% of employees in southern Africa check status annually No. of employees 90,473 –HIVDMP on target at 59% HIV+ve employees • Investing knowledge and resources in HIV prevalence 16.5% community healthcare Number HIV+ve employees (estimate
Slide 18: Safety
SAFETY • Strategy for driving continuous improvement – Ensuring that the fundamentals of safety management are consistently embedded, – Learning from fatalities and high potential incidents remains an urgent priority – Implementing project to identify and develop S&SD skills, knowledge and capabilit
Slide 19: HR
HR • Organisational Development and Headcount – Implementation of the major reorganisation has been completed – Decrease of 9,426 in overall headcount figures (including contractors) • Transformation and Diversity – Good progress has been made in relation to transformation in South Africa – The repr
Slide 20: Communities
COMMUNITIES ANJI HUNTER
Slide 21: Community Relations
COMMUNITY RELATIONS Social issues increasingly integrated into core business process: • Projects. Social risks and opportunities integrated into project reviews in 2010 • Business development. Government relations and community risks and opportunities now a standing part of acquisition and disposals
Slide 22: Local Procurement
LOCAL PROCUREMENT • Anglo American’s first local procurement policy launched in 2010. Built on four principles: 1. Opportunities exist across the whole supply chain 2. Local procurement should be inclusive and target less privileged groups 3. No compromise on quality, safety, environmental or delive
Slide 23: Business and Human Rights
BUSINESS AND HUMAN RIGHTS • Endorsement of Prof John Ruggie’s “Protect, Respect, Redress” framework expected in 2011 • Anglo American is well-placed to address these recommendations: –Long-term signatory to the Voluntary Principles. During 2010 1,267 Anglo American security staff received human righ
Slide 24: Environment
ENVIRONMENT DORIAN EMMETT
Slide 25: Climate Change & Energy
CLIMATE CHANGE & ENERGY “We aim to achieve the maximum economically sustainable energy and carbon savings in our business and the use of our products” • Saving energy and driving operational excellence: New management tool supporting identification of projects to save energy and reduce carbon • Redu
Slide 26: Water
WATER “As a water steward, our aim is to maximise the value of water resources while seeking to achieve no long term net harm where we operate” Water strategy and policy enable leadership: • Saving water: Driving operational excellence through water action plans – Water Efficiency Target Tool (WETT)
Slide 27: Biodiversity
BIODIVERSITY “We endeavour to minimise the negative impacts of our activities and drive positive outcomes in terms of land management and biodiversity” • Managing biodiversity: The Environment Way requires operations to have biodiversity action plans in place where it poses a significant risk or opp
Slide 28: Mining and Biodiversity
MINING AND BIODIVERSITY PIPPA HOWARD, FAUNA AND FLORA INTERNATIONAL
Slide 29: FFI – Anglo American Strategic Biodiversity Partnership
Innovative conservation since 1903 FFI – ANGLO AMERICAN STRATEGIC BIODIVERSITY PARTNERSHIP Pippa Howard SRI Investors Meeting 25 May 2011
Slide 30: Are Biodiversity & Ecosystem Services a Material Issue for Investors?
ARE BIODIVERSITY & ECOSYSTEM SERVICES A MATERIAL ISSUE FOR INVESTORS? Innovative conservation since 1903 “Companies and their investors have long taken ecosystems services for granted, as if they came for free. Yet recent pressures on natural resources suggest that in future such services will start
Slide 31: Biodiversity Is an Issue on the Move
BIODIVERSITY IS AN ISSUE ON THE MOVE Innovative conservation since 1903 Climate Change 1000 Perceived impact in Billions of dollars Economic disparity Global governance failure Chronic disease Water Security Floods Food Security Biodiversity Loss – 2011 Terrorism Biodiversity Loss – 2009 50 Unlikely
Slide 32: The Role of Business in Managing Biodiversity
THE ROLE OF BUSINESS IN MANAGING BIODIVERSITY Innovative conservation since 1903 • Advice on biodiversity policy and strategy • Biodiversity risk & opportunity assessment • Biodiversity action plans • Capacity building & Communications • Environmental Markets – REDD+, PES 32
Slide 33: Benefits to Business for Managing Biodiversity
BENEFITS TO BUSINESS FOR MANAGING BIODIVERSITY Innovative conservation since 1903 • Shorter and less contentious permit cycles • License to operate and continued access to land • Manage reputational risk – legacy issues • Access to finance • Increased investor confidence – IFC et al • Involvement in
Slide 34: Benefits to Business for Managing Ecosystem Services
BENEFITS TO BUSINESS FOR MANAGING ECOSYSTEM SERVICES Innovative conservation since 1903 • Water provisioning from a healthy ecosystem • Energy security and healthy ecosystem and function (hydropower) • Storm flow attenuation and erosion control • Maintaining the assimilative capacity of the receivin
Slide 35: Partnership Programme
PARTNERSHIP PROGRAMME DEVELOPMENT Innovative conservation since 1903 LEADERSHIP Integration into full mine cycle Environmental Markets Risk & Opp Assessment – global assessment VALUE creation Anglo Biodiversity White ongoing core Paper & Strategy engagement with Bus -FFI BAP reviews Anglo Environmen
Slide 36: Thank You
Innovative conservation since 1903 THANK YOU