Slide 1: Preliminary Results Year Ended 31 December 2012
PRELIMINARY RESULTS YEAR ENDED 31 DECEMBER 2012 15 February 2013
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: I. Operational Performance
I. OPERATIONAL PERFORMANCE CYNTHIA CARROLL
Slide 4: Key Themes
KEY THEMES • Underlying earnings $2.8bn and underlying EPS $2.26 Underlying EPS $ 5.06 • Impairments and special items resulted in loss attributable to equity shareholders of $1.5bn 4.36 4.13 • Record production across five commodities driven by project ramp up and operational improvements; offset 2
Slide 5: Sustainable Development Performance
SUSTAINABLE DEVELOPMENT PERFORMANCE Safety Safety • Significant reduction in fatalities 1.16 1.15 Fatalities LTIFR 1.04 • Lost time injury frequency rate (LTIFR) improved by 48% 0.76 since 2006 0.64 0.64 0.60 44 40 • Strong focus on eliminating repeat incidents and reduction 28 20 17 in operational
Slide 6: Strong growth in production offset by grade decline and industrial action
STRONG GROWTH IN PRODUCTION OFFSET BY GRADE DECLINE AND INDUSTRIAL ACTION Strong year-on-year production increases Kumba Iron Ore Kolomela ramp-up, offset by unprotected strike at Sishen +4% Export metallurgical Record production driven by long wall performance coal +24% and open cut asset optimisat
Slide 7: Illegal Industrial Action - Impact on Bottom Line
ILLEGAL INDUSTRIAL ACTION - IMPACT ON BOTTOM LINE Platinum Kumba Iron Ore 2012 2012 Operating profit ($bn) (0.4) Operating profit ($bn) (0.1) EPS ($/share) (0.18) EPS ($/share) (0.02) Production (koz) (306) Approximate production loss (Mt) (5) Waste mining (Mt) (17) • Significant production losses r
Slide 8: Iron Ore and Manganese
IRON ORE AND MANGANESE • Operating profit of $2,949m, down 33% due to 23% fall in Kolomela exceeded expectations in 2012 iron ore prices, partially offset by record iron ore export sales of 39.7 Mt, up 7% kt • Kumba ownership increased by 4.5% to 69.7% 1,200 Kumba • Record Kumba production of 43.1 M
Slide 9: Metallurgical Coal
METALLURGICAL COAL • Operating profit of $405m, down 66%, due to Reduced FOB cash unit costs(1) 29% weaker met coal prices AUD$/t 20% • Record metallurgical coal production of 17.7 Mt; 111 up 24%, despite cutting low margin production 88 • Production increases driven by productivity improvements at
Slide 10: Thermal Coal
THERMAL COAL • Operating profit of $793m, down 36% Record South African export production • Record export production of 28.7 Mt, despite safety Mt stoppages, industry strikes and planned closure of 0.1 high cost production – High cost production at Goedehoop, Greenside and Kleinkopje closed and mine
Slide 11: Copper
COPPER • Operating profit of $1,687m, down 31% mainly due Improving copper production profile despite lower to lower prices and higher costs grades • Production up 10% to 660 kt despite Los Bronces kt Grade mine constraints and Collahuasi’s lower grades and throughput 800 1.2% • Los Bronces expansio
Slide 12: Nickel
NICKEL • Operating profit of $26m, down 54% Record Nickel production up 35% • Price decline of 23% and the Venezuelan kt +35% government export ban significantly impacted results 39.3 • Underlying operating profit included $59m self-insurance recovery • Record production of 39 kt, up 35%, including
Slide 13: Platinum
PLATINUM • Operating loss of $120m mainly due to lower sales and Fatalities average realised prices 25 • Significant improvement in safety performance 18 • Challenging market and economic conditions resulted in: 14 – Lower revenue 12 – Production cuts – Asset write-downs of $0.6bn 8 7 1 H2 • Illegal
Slide 14: Diamonds
DIAMONDS • Operating profit of $496m(1), down 25% Production reflects focus on maintenance and waste stripping backlogs • Driven by weak demand, partly offset by the full M carats consolidation of De Beers from August 2012 9.3 • Production of 27.9 Mct, down 2.5 Mct(2) or 8% - 8.1 8.1 7.4 7.2 product
Slide 15: II. Financials
II. FINANCIALS RENE MEDORI
Slide 16: Financial Overview
FINANCIAL OVERVIEW Underlying EPS ($/share) Key financials(1) 4.13 5.06 2.26 ($bn) 2012 2011 change 2.58 2.48 2.29 EBITDA 8.7 13.3 (35%) 1.84 Operating profit 6.2 11.1 (44%) 1.38 Effective tax rate 29.0% 28.3% 0.88 Impact of strikes: (0.20) Underlying earnings 2.8 6.1 (54%) Capex(2) 5.7 5.8 (1%) Net
Slide 17: Full Year Operating Profit Variances
FULL YEAR OPERATING PROFIT VARIANCES ($bn) 12.0 (3.9) 11.0 10.0 (2.9) Bulks 9.0 8.0 11.1 (1.0) (0.6) 0.9 0.2 (0.3) (0.5) 7.0 Traded (0.2) (0.3) (0.2) (0.1) 6.0 7.6 6.2 0.0 Actual Price(1) Exchange Inflation(2) Sales Cash Strikes(5) Depre- Associates De Other Actual 2011 volume(3) Costs(4) ciation Be
Slide 18: Operating Profit Variances: Price (Bulks)
OPERATING PROFIT VARIANCES: PRICE (BULKS) 2012 vs. 2011(1) ($m) Iron ore(3) (Mt) Metallurgical coal (Mt) Thermal coal RSA (Mt) Realised $156/t $122/t $265/t(4) $191/t(4) $114/t $92/t price 39.7 15.5 16.5 17.2 37.1 1% Export 12.3 9% 2% 24% sales 27% 13% 1% Iron ore (1,359) volume 18% 56% 91% 98% 99%
Slide 19: Operating Profit Variances: Price (Base and Precious)
OPERATING PROFIT VARIANCES: PRICE (BASE AND PRECIOUS) 2012 vs. 2011(1) ($m) Platinum price $/oz Rand/oz 1,900 Marikana 26,000 2012 platinum market price: $1,555/oz(2) Strike 2012 achieved Rand basket price: R19,764/oz(2) 1,800 24,000 1,700 22,000 1,600 20,000 1,500 Platinum (698) 1,400 Platinum mark
Slide 20: Operating Profit Variances: Sales Volume
OPERATING PROFIT VARIANCES: SALES VOLUME 2012 vs. 2011(1) ($m) Sales performance(1) (% change vs. 2011) 151 26% 88 KIO Metallurgical 223 Coal 9% (118) Platinum (5%) (42) Other(2) Platinum KIO(3) Met Coal(4) (1) Total Business Unit variance; impact of strikes at Platinum and Kumba excluded from Volum
Slide 21: Above-CPI Cash Cost Movements
ABOVE-CPI CASH COST MOVEMENTS Non controllable costs Controllable costs 11% 4% 8% 3% 5% 1% 7% 5% 2% 4% 1% 2% 1% (2%) (3%) (5%) 2007(1) 2008(1) 2009(1) 2010 2011 2012(2) (1) 2007 to 2009 excludes AngloGold Ashanti, Mondi, Highveld Steel and Tongaat-Hulett/Hulamin; 2010 onwards is for core operations
Slide 22: Group Capex and Net Debt Overview
GROUP CAPEX AND NET DEBT OVERVIEW Capital expenditure ($bn) Net debt ($bn) 5.8 5.7 Opening net debt – 1 January 2012 1.4 1.0 0.9 Operating free cash flow (7.4) 0.4 0.2 Capital expenditure 5.7 0.2 Closed out 0.2 Grosvenor projects 0.7 Cash tax paid 1.7 0.4 1.4 Minas-Rio Net interest paid 0.5 0.1 0.9
Slide 23: Diamonds
DIAMONDS Operating profit (at 100%) Accounting impact 100% Anglo attributable Price index (% indicates change on previous half year) • On acquisition of a controlling interest in De Beers on ($bn) 16 August 2012: (45%) +34% (4%) – 100% of De Beers was restated to fair value 0% 1.5 (12%) including no
Slide 24: Key Accounting Items
KEY ACCOUNTING ITEMS Impairments and other charges Minas-Rio ($bn on a post-tax basis) • On the basis of the revised capital expenditure Minas-Rio 4.0 requirements and an assessment of the full potential of phase one of the project (excluding at this stage the Platinum projects 0.6 potential for fut
Slide 25: III. Conclusion
III. CONCLUSION CYNTHIA CARROLL
Slide 26: 2012 – A Year of Significant External Challenges
2012 – A YEAR OF SIGNIFICANT EXTERNAL CHALLENGES CHALLENGES Weak economic Continued cost environment Illegal strikes inflation $3.9bn price impact on $0.5bn strike impact on $0.3bn cost inflation impact on operating profit operating profit operating profit Minas-Rio capex increase by $3bn Sa
Slide 27: A Focused Business Delivering Growth
A FOCUSED BUSINESS DELIVERING GROWTH A more streamlined commodity profile Significant reduction in fatalities % of operating profit 44 40 28 20 17 15 13 2006 2007 2008 2009 2010 2011 2012 New projects contributed $1.2bn in 2012 2007 2012 20% of operating profit Iron Ore & Manganese Metallurgical Coa
Slide 28: Resilient Portfolio with Balanced Exposure to All Stages of Development
RESILIENT PORTFOLIO WITH BALANCED EXPOSURE TO ALL STAGES OF DEVELOPMENT Long term fundamentals remain robust Unique portfolio composition Indexed intensity of use – China H1 2012 EBITDA % 2012e 1.1 1.0 0.9 Peer 1 0.8 0.7 Peer 2 0.6 0.5 Peer 3 Steel 0.4 Copper Autocat PGMs 0.3 Peer 4 Diamonds 0.2 2 4
Slide 29: Q&A
Q&A
Slide 30: Appendix
AngloAmerican APPENDIX
Slide 31: Platinum Portfolio Review: Key Proposals
PLATINUM PORTFOLIO REVIEW: KEY PROPOSALS • Reduce baseline production to 2.1–2.3 Moz pa to more closely align Significant margin compression output with expected demand while maintaining flexibility to meet potential demand upside 550 Platinum mining industry average unit cost +14% Rand platinum pri
Slide 32: Minas-Rio Review
MINAS-RIO REVIEW • Medium and long term attractiveness and strategic Beneficiation plant – 53% complete positioning of Minas-Rio remains intact • Cost and schedule review completed, including a detailed re-evaluation of all aspects of the outstanding schedule, with a focus on maximising value and mi
Slide 33: Analysis of Operating Profit
ANALYSIS OF OPERATING PROFIT $m 2012 2011 Iron Ore and Manganese 2,949 4,400 Metallurgical Coal 405 1,189 Thermal Coal 793 1,230 Copper 1,687 2,461 Nickel 26 57 Platinum (120) 890 Diamonds 496 659 Other Mining and Industrial 337 315 Exploration (206) (121) Corporate Activities and
Slide 34: Analysis of Underlying Earnings
ANALYSIS OF UNDERLYING EARNINGS $m 2012 2011 Iron Ore and Manganese 1,037 1,457 Metallurgical Coal 275 844 Thermal Coal 523 902 Copper 908 1,610 Nickel 11 23 Platinum (225) 410 Diamonds 312 443 Other Mining and Industrial 229 175 Exploration (195) (118) Corporate Activities and Una
Slide 35: Average Market Prices
AVERAGE MARKET PRICES 2012 2011 Iron ore (FOB Australia) - $/t 122 160 Thermal coal (FOB South Africa) - $/t 93 116 Thermal coal (FOB Australia) - $/t 94 121 HCC (FOB Australia average quarterly benchmark) - $/t 210 289 Copper (LME) - cents/lb 361 400 Nickel (LME) - cents/lb 794 1,035 Pl
Slide 36: Underlying Earnings Sensitivities
UNDERLYING EARNINGS SENSITIVITIES(1) Commodity / currency Change in price / exchange $m Iron ore + $10/t 157 Metallurgical coal + $10/t 102 Thermal coal + $10/t 225 Copper + 10c/lb 77 Nickel + 10c/lb 5 Platinum + $100/oz 98 Rhodium + $100/oz 14 Palladium + $10/oz 6 ZAR / USD + every 10 c movement 53
Slide 37: Regional Analysis – Operating Profit
REGIONAL ANALYSIS – OPERATING PROFIT $m 2012 2011 South Africa 3,335 6,059 Other Africa 437 501 South America 2,367 3,245 North America (138) 256 Australia and Asia 465 1,318 Europe (302) (284) Total operating profit 6,164 11,095 37
Slide 38: Capital Expenditure
CAPITAL EXPENDITURE(1) $m 2012 2011 Iron Ore and Manganese 2,077 1,659 Metallurgical Coal 1,028 695 Thermal Coal 266 190 Copper 996 1,570 Nickel 100 398 Platinum 822 970 Diamonds 94 - Other Mining and Industrial 260 225 Exploration 6 1 Corporate Activities and Unallocated Costs 29 56 Total capital e
Slide 39: Operating Profit Variances: Exchange
OPERATING PROFIT VARIANCES: EXCHANGE (1) Principally 2012 comprises CLP, GBP vs. 2011 and Euro ($m) ZAR/US$ exchange rate 9.0 945 BRL 102 8.0 7.0 6.0 2011: 7.26 2012: 8.21 5.0 Jan 2011 Jul 2011 Jan 2012 Jul 2012 Dec 2012 ZAR 885 BRL/US$ exchange rate 2.2 2.0 1.8 1.6 AUD (30) 1.4 (12) 2011: 1.67 2012
Slide 40: Liquidity Headroom and Debt Profile
LIQUIDITY HEADROOM AND DEBT PROFILE Liquidity headroom ($bn) 20.2 18.6 17.6 12.8 8.4 9.3 11.1 9.5 11.7 9.3 3.3 6.5 (14.6) (13.8) (13.1) (13.1) (17.9) 2009 2010 2011 2012 Liquidity headroom Undrawn facilities Cash Gross debt Debt repayments(1) ($bn) 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2013 2014 2015 2016 201