Anglo American Plc · LSE:AAL

Anglo American — BMO 25th Global Metals & Mining Conference 2016

16 slides from Anglo American's conference presentation, Feb 29, 2016

  1. Slide 1: The New Anglo American

    THE NEW ANGLO AMERICAN BMO 25th Global Metals & Mining Conference 29 February 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 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

  4. Slide 4: Our Core Business

    OUR CORE BUSINESS Relative earnings contributions driven by scale and quality… 2015 EBITDA vs. Revenue ($bn)(1) Demand drivers (pro forma 2016 EBITDA) De Beers Infrastructure Consumer Industrial Energy Food 2015 EBITDA ($bn) 13% Copper 26% Samancor Kumba Coal - Australia Platinum 46% 78% Nickel Coal

  5. Slide 5: Core Business Profile - People

    CORE BUSINESS PROFILE - PEOPLE Focus on fewer, but larger, more productive assets… Organisational structure Total headcount (‘000s) (1)(2) 128 Chief Executive Mark Cutifani 68 50 10 De Beers Copper Bulks Platinum Philippe Duncan Seamus Chris Griffith Mellier Wanblad French End 2015 Disposals Restruc

  6. Slide 6: Reduced Complexity

    REDUCED COMPLEXITY Large, long life, scalable resource and low cost operations… 55 55 50 45 45 De Beers(1) Platinum Copper 40  Jwaneng  Mogalakwena Chile  Los Bronces 35 Botswana  Orapa  Amandelbult  Collahuasi 30 # of mines South  Venetia South • BRPM 25 Africa Africa • Mototolo • Voorspoed

  7. Slide 7: De Beers

    DE BEERS Industry leadership across the pipeline… Diamond mining industry margin curve UPSTREAM LEADERSHIP Ratio of C1 costs to revenue 1.2 1.0 De Beers Assets  Best-in-class mining assets – large, long life with scalable production and low cost. 0.8 0.6  Strong government partnerships – Botswana

  8. Slide 8: Platinum

    PLATINUM We are the leading PGM company and moving further down the cost curve… 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 platinum assets. Modikwa Unki Mototolo  Mogalakwena lowest cost dedicated producer.

  9. Slide 9: Copper

    COPPER Highly competitive position in copper… Top 10 Producing Mines (2015 Cu kt) WORLD CLASS ASSETS Escondida Morenci  Attractive combination of scale, life and cost positions. Collahuasi Chuquicamata El Teniente  Extensive high-quality resources underpin substantial Los Bronces brownfield growth

  10. Slide 10: The Disposal Processes

    THE DISPOSAL PROCESSES Targeting disposals of $3-4bn for value by end of 2016… More advanced Niobium & Phosphates Some combination of these is expected to contribute to the Nickel $3-4bn target for 2016 Moranbah & Grosvenor Australian Coal - Other SA Coal - Domestic Cerrejón Platinum - non-core SA C

  11. Slide 11: Unit Costs – Supported by Productivity Improvements

    UNIT COSTS – SUPPORTED BY PRODUCTIVITY IMPROVEMENTS Significant productivity improvements support cost reductions… Cu Equivalent production, unit cost & productivity 2015 vs 2014 Unit cost variance 140 (US$) 127 in Q4 2015 120 120 100 80 -6% 73 -13% -9% -9% 60 -23% (16%) average Cu equiv. 40 -28% 20

  12. Slide 12: EBIT Improvement in 2015 and Beyond

    EBIT IMPROVEMENT IN 2015 AND BEYOND We are now targeting $1.9bn of EBIT improvement in 2016… Incremental EBIT improvement ($bn) 3.4 1.0 1.9 Volume reduced in response to market 0.8 Additional EBIT conditions improvement 1.3 1.1 0.8 1.3 2015 Improvements De Beers 2015 volume 2016 Improvement Target 2

  13. Slide 13: Incremental Cash Flow Improvement in 2016

    INCREMENTAL CASH FLOW IMPROVEMENT IN 2016 $1bn additional cash flow identified… 2016 free cash flow ($bn) 0.4 $1.0bn 0.4 0.0 0.3 0.2 0.2 0.8 Working capital: $0.3bn Project capex: $0.2bn (1.0) 2016: As at EBIT improvement Taxes Capex & Cash flow post Price and FX spot 2016: Latest view Investor Day

  14. Slide 14: Net Debt Target

    NET DEBT TARGET Targeting net debt of below $10bn by end 2016… Target net debt evolution Net Debt Considerations $12.9bn $3-4bn  Medium-term target - solid investment grade rating.  ~$6bn net debt @ spot for core portfolio. <$10bn  End 2016 net debt target of <$10bn. To come from cash generation

  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 at spot prices and FX…  Planned $1.9bn of cost and business improvements vs

  16. Slide 16: Questions

    QUESTIONS

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