Anglo American Plc · LSE:AAL
Anglo American — ESG Presentation (March 2016)
29 slides from Anglo American's sustainability presentation, Mar 15, 2016
Slide 1: 2015 Sustainable Development Performance
2015 SUSTAINABLE DEVELOPMENT PERFORMANCE Presentation to Investors. 15 March 2016
Slide 2: Contents
CONTENTS • CHAIRMAN’S WELCOME • SUSTAINABILITY IN OUR BUSINESS STRATEGY • 2015 RISKS AND PERFORMANCE • Q&A 2
Slide 3: Chairman's Welcome
CHAIRMAN’S WELCOME Sir John Parker
Slide 4: Chairman's Welcome: Improved performance
CHAIRMAN’S WELCOME Improved performance… Loss of life (by business) Our year in review 17 13 15 Best safety performance in a full production year. 12 6 6 Q4 fatal-free, 1 fatal incident in H2. 7 6 3 2 Improvements in environmental incidents reflect 2011 2012 2013 2014 2015 operations planning
Slide 5: Materiality Process
MATERIALITY PROCESS A structured process… …ensures comprehensive identification of risks. 5
Slide 6: Sustainability in Anglo American's Strategy
SUSTAINABILITY IN ANGLO AMERICAN’S STRATEGY Mark Cutifani
Slide 7: Why Sustainable Development Matters
WHY SUSTAINABLE DEVELOPMENT MATTERS Mining impacts on sustainable development in many ways… Our concept of sustainability is broad, and encompasses: • health and safety • environment • socio-economic and political factors • employee development and wellbeing • productivity • costs • returns Thro
Slide 8: Our Strategy
OUR STRATEGY Sustainable development is interwoven in the Anglo American strategy… OUR WORLD The global and industry context in which we operate including the expectations of our shareholders and stakeholders OUR AMBITION What we want to achieve and the key elements to do this HOW WE DELIVER What we
Slide 9: Key Challenges
KEY CHALLENGES Our business needs to address key challenges… 1. Strengthen our balance 2. Achieve Zero Harm and 3. Meet shareholder sheet by reducing costs minimize our impacts on the expectations everywhere and realising environment value via disposals 4. Nurture talent and sound 5. Generate cash a
Slide 10: Our Ambition
OUR AMBITION In 2016 we will focus on transforming our business… Asset portfolio A world class core portfolio of assets in De Beers, platinum group metals (PGMs) and copper. Highly competitive assets positioned to deliver robust profitability and cash flows through the cycle. Bulk commodities
Slide 11: How We Deliver and Measure Success
HOW WE DELIVER AND MEASURE SUCCESS
Slide 12: How We Deliver and Measure Success
HOW WE DELIVER AND MEASURE SUCCESS We have focused on our four strategic imperatives… Our four strategic imperatives, set out in 2014, provide the framework for how we deliver… 1. Focus 2. Focus 3. Enhance core 4. Create a high the portfolio on delivery business processes performance culture Now wit
Slide 13: The New Anglo American Core Portfolio
THE NEW ANGLO AMERICAN 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 at spot prices and FX… Planned $1.9bn of cost and business improvements vs 2015. For
Slide 14: Focus the Portfolio
FOCUS THE PORTFOLIO We are focused on those assets that offer us the greatest competitive advantage… To achieve this, we will: Move focus away from the bulks, where our asset positions are less competitive. Focus on our global leadership positions in diamonds and PGMs and world class copper asse
Slide 15: Focus the Portfolio: Core Portfolio
FOCUS THE PORTFOLIO Our core portfolio of large, scalable resources and low cost operations… 55 55 50 45 De Beers Platinum Copper 45 • Jwaneng • Mogalakwena Chile • Los Bronces 40 Botswana • Orapa • Amandelbult 35 • Collahuasi # of mines 30 South • Venetia South • BRPM Africa Africa • Mototolo • Voo
Slide 16: Safety and Health
SAFETY AND HEALTH Safety and health remain at the top of our agenda… We deeply regret the loss of six members of our workforce in 2015. New cases of occupational disease and incident rates continue to decline. Our first ‘full production’ fatality free quarter in Q4 demonstrates that zero harm
Slide 17: Environment
ENVIRONMENT Incidents are declining and efficiencies growing… 2020 water target already 325 energy, carbon and business improvement projects exceeded. implemented through ECO2MAN programme. 16% reduction against business as usual. 2011-2015 GHG target exceeded. 2011-2015 energy target met. 2
Slide 18: Water
WATER We are targeting to reduce our water demand and footprint impacts… Water security 75% of our operations are located in high water risk regions. water balances at critical sites reviewed and additional efficiency measures identified (Los Bronces tailings water recovery). alternate water s
Slide 19: GHG Emissions
GHG EMISSIONS Hold the increase in global average temperature to well below 2˚C… The transition path to a low carbon world will influence the demand and markets for our products current downstream GHG emissions from thermal coal combustion ˜108Mt/pa. our portfolio re-structure reduces the foss
Slide 20: Political
POLITICAL Risk mitigation and stakeholder engagement has been a focus… Effective political engagement We have maintained effective political engagement in-country and across all levels of government: this reflected in the measured political response from governments to our portfolio and asset re
Slide 21: Global Issues
GLOBAL ISSUES Engagement at international level… We have also demonstrated our commitment to our values / wider goals, as a leading member of the international business and development community, supporting e.g.: the UN Sustainable Development Goals. the Climate Change agreement in Paris in De
Slide 22: Socio-Political
SOCIO-POLITICAL Social performance remains an area of focus… New version of the Social Way, our community performance standards, came into force in 2015. Significant improvements over baseline. Have almost eliminated material non-compliances. Biggest improvements seen in South America, African
Slide 23: People
PEOPLE Restructuring of the workforce being executed successfully… Focus is on creating a leaner and more effective function structure that provides value-adding expert leadership and governance to sites. All indirect roles reviewed in 2015. Led to significant reduction in numbers and greater
Slide 24: Restructuring the Organisation
RESTRUCTURING THE ORGANISATION Employee numbers will reduce… Employee and contractor numbers Total headcount -21% 162,000 151,000 13,000 128,000 128,000 11,500 68,000 50,000 10,000 50,000 ≤5,000 End Disposals Restructuring Core 2013 2014 2015 Core 2015 Anglo American Support Operations Notes: Exclud
Slide 25: Unit Costs – Supported by Productivity Improvements
UNIT COSTS – SUPPORTED BY PRODUCTIVITY IMPROVEMENTS Significant productivity improvements supported cost reductions… Cu Equivalent production, unit cost & productivity 2015 vs 2014 Unit cost variance 140 127 in Q4 2015 (US$) 120 120 100 80 -6% -13% -9% -9% 73 60 -23% (16%) average Cu equiv. 40 -28%
Slide 26: 2015 Financial Results
2015 FINANCIAL RESULTS Falling commodity prices dominate financial results… …as $1.3 billion of cost and productivity improvements mitigate impact. 26
Slide 27: Performance Summary
AngloAmerican PERFORMANCE SUMMARY
Slide 28: 2015 Scorecard
2015 SCORECARD We have come a long way since 2012… SAFETY…………..………………………….over 50% reduction in incident rates. ENVIRONMENT…………………….…….…over 70% reduction in incident rates. SOCIO-POLITICAL……..SA govt relations reset, improved social performance. PEOPLE……………..…….20% improvement in productivi
Slide 29: Q&A
Q&A