Anglo American Plc · LSE:AAL
Anglo American — Shareholder Meeting (April 2017)
13 slides from Anglo American's shareholder meeting presentation, Apr 24, 2017
Slide 1: Annual General Meeting 2017
ANNUAL GENERAL MEETING 2017 MARK CUTIFANI – CHIEF EXECUTIVE 24 April 2017
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
Slide 3: Full Year Results 2016 – Operating Performance
FULL YEAR RESULTS 2016 – OPERATING PERFORMANCE
Slide 4: Delivering Change, Building Resilience
DELIVERING CHANGE, BUILDING RESILIENCE 1 Delivering on • Free cash flow target exceeded…$2.6bn vs $0.4bn. commitments • Net debt at $8.5bn…………..well below $10bn target. 2 Operational • Operating model driving productivity improvements. improvement • EBITDA margin up 5% points…despite lower prices. 3
Slide 5: Delivering on Our Commitments
DELIVERING ON OUR COMMITMENTS Actual Target EBITDA(1) $6.1bn $4.5bn(2) Cost & volume improvements $1.5bn $1.6bn ~ Capital expenditure(3) $2.5bn <$2.7bn Attributable free cash flow $2.6bn $0.4bn(2) Net debt $8.5bn <$10bn Net debt / EBITDA(1) 1.4x <2.5x Note: Based on targets set in February
Slide 6: Safety & Environment
SAFETY & ENVIRONMENT Safety: Loss of life and TRCFR(1) Safety Group TRCFR 1.3 • Fatal incidents extremely disappointing – focus on 1.1 0.8 0.9 critical controls post restructuring. 15 0.7 13 11 • 24% improvement in total recordable injury rates is 6 6 encouraging. • Innovation programme supports ong
Slide 7: Margins Improving 5% Points Despite Lower Prices
MARGINS IMPROVING 5% POINTS DESPITE LOWER PRICES Indexed prices (1 Jan 2015 = 1)(1) and EBITDA margins Margin focus EBITDA margin Basket price Average annual • EBITDA and free cash flow improved through: basket price Portfolio upgrading. Index 1.1 26% Improved productivity and costs. Lower ind
Slide 8: Productivity Improvements Ongoing
PRODUCTIVITY IMPROVEMENTS ONGOING 110 108 1. Includes benefits of portfolio upgrading. 2. Cu Equiv (Copper-equivalent) is calculated using long-term consensus parameters. Excludes domestic / cost-plus production. Production shown on a reported basis. 8 3. Unit cost includes only AA’s equity share of
Slide 9: Q1 2017 Performance
Q1 2017 PERFORMANCE
Slide 10: Delivering Change, Building Resilience
DELIVERING CHANGE, BUILDING RESILIENCE Nujoma vessel, Debmarine Namibia
Slide 11: Building a Resilient Business
BUILDING A RESILIENT BUSINESS De Beers Platinum Copper Bulks and Other Minerals Jwaneng Mogalakwena Sishen Botswana Iron ore and Kolomela Orapa Los Bronces Amandelbult Chile manganese Minas-Rio Venetia • Samancor South Africa South • BRPM Collahuasi • Voorspoed Africa • SA Therma
Slide 12: Delivering Change, Building Resilience
DELIVERING CHANGE, BUILDING RESILIENCE • Creating a high quality, long life asset portfolio. Operational improvement • Operating model to help drive margins. • Focused on cash flow generation. • Disciplined capital management. Balance sheet discipline • Reinstatement of dividend targeted for the end
Slide 13: Mark Cutifani – Chief Executive
ANNUAL GENERAL MEETING 2017 MARK CUTIFANI – CHIEF EXECUTIVE 24 April 2017