Anglo American plc · LSE:AAL
Anglo American — H1 2005 Earnings Presentation
10 slides from Anglo American's earnings presentation, Aug 4, 2005
Slide 1: Anglo American: Meeting the World's Needs
ANGLO AMERICAN MEETING THE WORLD’S NEEDS 4 August 2005 This presentation is being made only to and is directed only at (a) persons who have professional experience in matters relating to investments falling within Article 19(1) of the Financial Services and Markets Act 2000 (Financial Promotion) Ord
Slide 2: Highlights
Highlights Record First Half: - Headline earnings up 43% at $1,784m Interim dividend rebased to 28c up 47% Cash generation (EBITDA) up 25% at $4,249m Strong performances from Base and Ferrous Metals; increased contributions from Platinum and Coal Cost cutting and efficiencies up 22% at $30
Slide 3: A robust first half performance
A robust first half performance Headline earnings 1,784 $m 1,248 Headline earnings more 840 856 than doubled since H1 2002….. H1 2002 H1 2003 H1 2004 H1 2005 …underpinned by EBITDA 4,249 continued strong cashflow $m 3,400 2,237 2,444 generation H1 2002 H1 2003 H1 2004 H1 2005 3 2005 Interim Resu
Slide 4: Margins and returns rising
Margins and returns rising Operating margin EBITDA return on capital 17.4% 24.5% 14.7% 21.2% 11.6% 17.3% 2003¹ 2004 H1 2005 2003¹ 2004 H1 2005² ¹2003 figures are UK GAAP ²annualised basis 4 2005 Interim Results
Slide 5: Portfolio developments
Portfolio developments Project pipeline strengthened - Sishen iron ore expansion ($365m) approved - Snap Lake diamond project ($230m) approved - Victor diamond project ($356m) approved (subject to EA approval ) - Mototolo JV ($100m) and Lebowa Merensky ($179m) projects announced - Barro Alto nicke
Slide 6: Substantial long term project portfolio
Substantial long term project portfolio APPROVED: UNAPPROVED: $5.1bn $8.0bn QUELLAVECO SISHEN SOUTH ISIBONELO Copper Iron ore MEREBANK $65m SIGUIRI $174m MOAB 2 RICHARDS BAY $52m CERREJÓN 2 COLLAHUASI Gold $235m INYANDA $43m EXPANSION TICOR 2 Copper OBUASI DEEPS RPM PH 2 $30m $54m Gold $169m GAMSBER
Slide 7: Substantial long term project portfolio
Substantial long term project portfolio Base Metals Platinum Gold Ferrous Paper and Coal Diamonds Packaging Approved: $300m Approved: $791m Approved: $1.3bn Approved: $700m Approved: $622m Approved: $646m Approved: $716m Grasstree ($106m) Finsch ($130m) Black Mountain ($110m) Lebowa ($179m) Moab Kho
Slide 8: Balance sheet
Balance sheet $m 30/6/2005 31/12/2004 AA plc Equity Holders’ Funds 22,067 23,125 Minority Interests 4,182 4,588 Net Debt: South Africa 2,620 3,381 Rest of World 4,410 7,030 4,862 8,243 Total Capital 33,279 35,956 Net Debt/Total Capital 21.1% 22.9% ROCE 17.6% 14.6% EBITDA/Total Capital 24.5% 21.2% 8
Slide 9: Summary
Summary • Strong first half: Record earnings and dividend • Record cash generation of $4,249m • Metal markets well underpinned – positive outlook for H2 earnings • Continued robust Chinese growth and prospects for OECD improvement • Further projects, growth opportunities and asset optimisations are
Slide 10: Anglo American: Meeting the World's Needs
ANGLO AMERICAN MEETING THE WORLD’S NEEDS 4 August 2005 This presentation is being made only to and is directed only at (a) persons who have professional experience in matters relating to investments falling within Article 19(1) of the Financial Services and Markets Act 2000 (Financial Promotion) Ord