Anglo American plc · LSE:AAL
Anglo American — Bernstein Strategic Decisions Conference 2019
22 slides from Anglo American's conference presentation, Sep 25, 2019
Slide 1: Positioned for the Future
POSITIONED FOR THE FUTURE Bernstein Strategic Decisions Conference. 25 September 2019
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: Fundamental Demand Drivers Evolving
FUNDAMENTAL DEMAND DRIVERS EVOLVING Population growth Urbanisation Wealth creation ~1.4 billion global population increase by 2035 2000 2018 2035 China 2000 2018 2035 India 2000 2018 2035 Africa 2000 2018 2035 South America Rural population Urban population 33
Slide 4: Strategic Context Shaped by Multiple Factors
STRATEGIC CONTEXT SHAPED BY MULTIPLE FACTORS Social & Political Environment Technology Circular economy & sustainable consumption Autonomous vehicles Communities Climate change: Advanced manufacturing EVs & hydrogen economy Future consumers Renewable energy Mining technology 44
Slide 5: Competitive, Sustainable & Differentiated
COMPETITIVE, SUSTAINABLE & DIFFERENTIATED
Slide 6: Asset Quality Focus
ASSET QUALITY FOCUS Diamonds Copper World leader Quality growth 55% mining EBITDA margin 44% mining EBITDA margin PGMs Bulks World leader Quality products 38% mining EBITDA margin 47% mining EBITDA margin 6
Slide 7: Fundamentally Different Business
FUNDAMENTALLY DIFFERENT BUSINESS Production, productivity & unit costs 2012 to H1 2019 Number of assets 220 200 +103% 50% 180 productivity1 160 140 Production volumes2 120 100 80 108 8% 60 40 2012 2013 2014 2015 2016 2017 2018 H1 2019 Unit costs Production index - Copper Equivalent (Cu Eq)2 Producti
Slide 8: Leading Competitive Position
LEADING COMPETITIVE POSITION Competitive Sustainable Differentiated Average quality adjusted cost curve position Net debt:EBITDA Cu Eq growth2 2018-2023 ~20-25% 1.2x 47% Peer range ~15% 36% Peer 34% range Peer range 0.3x ~5% 0.2x Anglo Peers3 Anglo Peers4 Anglo Peers4 8
Slide 9: Unlocking Our Full Potential
UNLOCKING OUR FULL POTENTIAL Palladium grain Copper, nickel, steel (iron ore and metallurgical coal)
Slide 10: Step-Change in Performance & Sustainability
STEP-CHANGE IN PERFORMANCE & SUSTAINABILITY P101 Operating Model Exceeding industry best-in-class equipment & process performance FutureSmart Technical change MiningTM Game-changing technology; data analytics; sustainability Incremental improvement Step-change 10
Slide 11: Innovation Driving Sustainability
INNOVATION DRIVING SUSTAINABILITY 1900 Today Future? 40kg Cu: 0.5% Cu 6m3 water 4% Cu 1t waste 3m3 water 10 KWhr 24t waste 160 KWhr 1t ore 8t ore Ever increasing scale Precise. Predictable. Reliable 11
Slide 12: Sustainability Drives Licence to Operate
SUSTAINABILITY DRIVES LICENCE TO OPERATE Operational Fewer Access to efficiency surprises resource FutureSmart MiningTM 12
Slide 13: Growing Quality
AngloAmerican GROWING QUALITY *eS<Minas-Rio
Slide 14: Attractive High Returning Growth Options
ATTRACTIVE HIGH RETURNING GROWTH OPTIONS Strong margins Attractive returns Fast payback >50% 19-30% <5 years Within disciplined capital allocation framework Quellaveco (Copper) Marine Namibia (Diamonds) Aquila (Met Coal) 14
Slide 15: Inherent Growth in Production & Margins
INHERENT GROWTH IN PRODUCTION & MARGINS P101 Innovation Growth projects Growth in production2 ~135 108 100 2012 H1 2019 2023 Growth in margin5 30% 46% ~45-50% 6 15 15
Slide 16: Positioned for the Future
POSITIONED FOR THE FUTURE Forevermark diamonds
Slide 17: Asset Quality Plays to Global Demand Themes
ASSET QUALITY PLAYS TO GLOBAL DEMAND THEMES Diamonds Copper PGMs Bulks World leader World class growth World leader High quality niche A resilient portfolio: 57% greener & consumer commodities Consumer World Electrified World Greener World 17 17
Slide 18: Our Investment Proposition
OUR INVESTMENT PROPOSITION Competitive Differentiated Sustainable Assets Capabilities Returns “Leading capabilities actively improving a competitive, world-class asset base to drive sustainable, attractive returns” 18 18
Slide 19: Q&A: Products That Improve People's Lives
Q&A Copper: electrification supporting renewables PGMs: air quality & lower emissions Diamonds: aspiration & growing prosperity Quality bulks: modern infrastructure development PRODUCTS THAT IMPROVE PEOPLE’S LIVES 19 19
Slide 20: Safety, Health & Environment
SAFETY, HEALTH & ENVIRONMENT Safety Health Environment Group TRCFR7,8 Fatalities Occupational health – new cases7,9 Major incidents7,10 15 209 30 4.66 175 11 159 4.02 9 111 101 15 5.42 96 6 6 5 3.55 3 3.17 2.66 6 6 2.20 4 11 2 1 2013 2014 2015 2016 2017 2018 H1 2019 2013 2014 2015 2016 2017 2018 H1
Slide 21: Footnotes
FOOTNOTES 1. 2012-H1 2019 annualised. Includes impact of portfolio upgrading. 2. Copper equivalent production is calculated using long-term consensus parameters. Excludes domestic / cost-plus production. Production shown on a reported basis. Includes assets sold, closed or placed on care and mainten
Slide 22: Investor Relations
INVESTOR RELATIONS Paul Galloway [email protected] Tel: +44 (0)20 7968 8718 Robert Greenberg [email protected] Tel: +44 (0)20 7968 2124 Emma Waterworth [email protected] Tel: +44 (0)20 7968 8574
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