Anglo American Plc · LSE:AAL
Anglo American — Non-Deal Roadshow (November 2004)
14 slides from Anglo American's roadshow presentation, November 2004
Slide 1: Anglo Coal Investor Roadshow
ANGLO AMERICAN A WORLD OF DIFFERENCE Anglo Coal Investor Roadshow November 2004 This presentation is being made only to and is directed only at (a) persons who have professional experience in matters relating to investments falling within Article 19(1) of the Financial 1 Services and Markets Act 200
Slide 2: Key Facts
Key Facts ► 14% of AA plc’s 2003 Headline 2003 EBITDA by Region earnings, 11% (H1 2004) ► Geographically diverse 34% earnings base 44% 22% ► EBITDA US$500 m (2003), US$280 m (H1 2004) Australia South Africa South America ► Total free cash generated since 1999 US$1.5 bn2 2 Anglo American plc
Slide 3: Anglo Coal relative to its peers
Anglo Coal relative to its peers 250 200 Mt - Saleable Production Export Metallurgical 150 Export Thermal Domestic 100 50 0 EI ta y ol l B l o dy a a a se nt hu A HP tra Co s Co o on Ti as ab en Xs B h o C M io Pe rc Sh l ng R A A 3 Source: Publicly available data Anglo Coal is 6th largest…..but 4th
Slide 4: Location Map
Location Map London Marketing Office Beijing Representative Office Venezuela South Africa Export Export Dom estic Export Export Dom estic Mine Mine Met Therm al Met Therm al CdG X X Goedehoop X X Attributable Production (2003) 2 Mt Kleinkopje X X X Australia Bank X X X Export Export Dom estic Em plo
Slide 5: Market shares of largest suppliers
Market shares of 5 largest suppliers Export T hermal Coal Export Metallurgical Coal 52% 69% 6% 5% 5% 7% 7% 4% 24% 7% 4% 10% Anglo Coal Anglo Coal Xstrata Xstrata BHPB BHPB (includes Mitsubishi) PT Bumi Canada (Fording & Teck) Rio Tinto Rio Tinto Others Others 5 Source: Publicly available data & Angl
Slide 6: EBITDA & ROCE
EBITDA & ROCE US$ m 31% 600 26% 16% 30% 500 25% 400 17% 15% 16% 20% 300 15% 200 10% 100 5% 0 0% 1999 2000 2001 2002 2003 H1 2004 South Africa Australia South America ROCE EBITDA ROCE ► CAGR 26% ► ROCE affected by – coal prices, FX rates ► EBITDA return (1999 to H1 2004) ~ 28% and production ► Target
Slide 7: EBITDA Margin
EBITDA Margin ► EBITDA Margin comparable with competitors EBITDA Margin ► 35% (2002), 28% (2003), 26% 40% (H1 2004) 35% 30% ► Margins in 2003 were 25% negatively impacted by 20% lower coal prices & stronger 15% 10% FX rates 5% 0% ► 2004 margin impacted by Anglo Coal Rio Tinto BHPB Xstrata production
Slide 8: World Energy Consumption - by Fuel
World Energy Consumption - by Fuel 700 In 2003…. • World primary energy Nuclear- 5% 600 consumption increased by 2.9% Renew - 3% • For the second year running, Gas - 26% coal was the fastest growing fuel, 500 increasing by 6.9%, driven by China, Russia, Japan and North EJ America 400 Oil - 41% More
Slide 9: Seaborne Thermal Coal Market in 2003/2004
Seaborne Thermal Coal Market in 2003/2004 Freight Rates surge on Typical lull in buying the back of Chinese during European 100 demand and ship supply. summer. European heat wave drives Richards Bay/Rotterdam 95 prices up route goes to US$28/t 90 • Hydro shortage compared to US$8/t in 85 • High airc
Slide 10: Seaborne Metallurgical Coal Price Evolution
Seaborne Metallurgical Coal Price Evolution Spot Prices at 80 +US$100/t for Japanese Fiscal Year marginal tonnage 75 Australia/Japanese Steel Mill HCC “Reference Price” FOB Queensland 70 65 US$/t Nominal 60 55 50 45 40 35 30 1982 1983 1984 1986 1997 1999 2000 2001 2002 2003 2004 1985 1987 1988 1989
Slide 11: Project Pipeline
Project Pipeline Russia China Cerrejon Indonesia US$50 m 2 Mtpa Export Thermal Kayuga Grasstree 2007* Isibonelo Mafube US$55 m US$106 M US$65 m 4 Mtpa 4 Mtpa 5 Mtpa Export Thermal Export Met Sasol Western 2005* 2007* 2006* Complex * Year of full production Dawson Lake 11 Valley Lindsay An exciting m
Slide 12: New Business Development
New Business Development ► Coal Bed/Mine Methane ► Moura (Australia) ► Waterberg (South Africa) ► German Creek (Australia) Long lead time ► VPLP ► Victorian Power & Liquids Project High capital ► Power and low sulphur diesel ► Carbon capture & storage New skills ► Government support Potential high r
Slide 13: Outlook
Outlook 2004 ► Sound operating performance across operations in all regions ► Operational problems at Moranbah North ► Higher costs ► inflationary pressures ► weaker US$ ► Higher average realised prices versus 2003 Thus, H2 2004 will be stronger than H1 2004 2005 ► Positive outlook – price & operati
Slide 14: Summary
Summary World Class Assets Operational Excellence Market Driven Russia People & Skills Development China New Business Development Venezuela Indonesia Colombia Australia South Africa 14 14 Anglo American plc