Anglo American plc · LSE:AAL
Anglo American — Non-Deal Roadshow (October 2006)
16 slides from Anglo American's roadshow presentation, October 2006
Slide 1: Creating Long Term Shareholder Value
CREATING LONG TERM SHAREHOLDER VALUE October 2006 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) Order 20
Slide 2: Highlights
Highlights • New CEO Cynthia Carroll appointed • Strong financial performance • Restructuring programme on track • Strong organic growth potential • $7.5bn ongoing capital return programme 22 October 2006
Slide 3: New CEO Appointed
New CEO Appointed • Cynthia Carroll appointed CEO • Joins Anglo American in January 2007, becomes CEO on 1 March 2007 • Strong operational and restructuring track record • Currently President of Alcan Primary Metal Group, accounting for some 75% of Alcan’s earnings • US citizen, qualified geologist
Slide 4: H1 2006 results
H1 2006 $bn H1 2006 H2 2005 change • Operating profit up 52% Operating profit 4,563 2,993 +52% Underlying earnings 2,502 1,699 +47% • Cost savings and efficiency 2.58 savings of $261m 1.70 (+44%) EPS ($) • Capital discipline: $7.5bn 1.40 return of capital 1.18 H1 2005 H2 2005 H1 2006 44 October 2006
Slide 5: Divisional overview
Divisional overview EBIT by division H1 2005 H1 2006 Mondi Mondi Gold 4% Gold 7% Base Metals AIM 6% 5% AIM 23% 3% 6% Diamonds 6% Base Metals Diamonds Coal 39% 9% 8% Platinum 13% Coal Ferrous 12% 14% Ferrous Platinum 25% 20% $2,993m $4,563m 55 October 2006
Slide 6: Evolution of borrowings and financial ratios
Evolution of borrowings and financial ratios 2002 2003 2004 2005 June 2006 Gearing 23.1% 26.6% 22.9% 17.0% 11.0% $bn Debt 8.6 8.3 5.6 5.0 2.7 $bn 2002 2003 2004 2005 Jun-06 Net (Acq)/Disposal (3.7) (0.7) 0.9 0.5 1.1 Capex (2.1) (3.0) (3.2) (3.3) (1.5) Fx Impact (0.1) (0.7) (0.7) 0.5 0.2 66 October 2
Slide 7: Strategic progress
Strategic progress • Shareholding in AGA reduced to 41.8% • Plans being developed for demerger of Mondi • Tarmac in depth review completed; restructuring underway • Sale of Highveld to Evraz and Credit Suisse announced • Unbundling of Hulamin from Tongaat-Hulett group progressing • $7.5bn ongoing ca
Slide 8: Strategy update: AngloGold Ashanti
Strategy update: AngloGold Ashanti Shareholding in AGA reduced from 50.9% to 41.8% Registered secondary offering of 16.3 million shares plus 3.4 million shares under a greenshoe option completed in April 2006 Proceeds of $978 million Shares sold at a 21.4% premium to price pre 26 October 200
Slide 9: Strategy update: Mondi
Strategy update: Mondi Plans being developed for demerger of Mondi - Legal and financial structures in place - Senior management team in place - Sir John Parker appointed as Non-Executive Chairman Discussions with regulatory authorities ongoing Likely timing: early 2007 99 October 2006
Slide 10: Strategy update: Tarmac
Strategy update: Tarmac Restructuring review completed Clearly defined scope of activities & geographic focus Disposals in UK, Hong Kong, India, Germany virtually completed Restructuring programmes in place $50m business improvement targeted over next 3 years Growth New market entry in
Slide 11: Strategy update: Highveld Steel
Strategy update : Highveld Steel Sale of Anglo’s 79% holding in Highveld to Evraz and Credit Suisse for $678m announced on 14 July 2006 Initial 49.8% stake sold for a total of $412m. Evraz has option to purchase remaining 29.2% stake for $266m, subject to competition approval Based on R/$ exch
Slide 12: Significant base metal potential
Significant base metal potential Unapproved base metal projects • Copper – potential to increase production by 60% • Nickel – potential to increase production by over 100% • Zinc – potential to increase production by 80% Copper ‘000 tonnes Nickel* ‘000 tonnes Collahuasi 1,000 Rosario Oeste Current 1
Slide 13: Significant coal potential
Significant coal potential Coal pipeline mt mt 120 30 Saddler's Creek 115 MacWest Heidelberg 25 Dawson expansion 110 Saddler's Creek Elders Moranbah South 105 20 Grosvenor 100 New Largo 95 15 Lake Lindsay Dawson 90 Zondagsfontein Actual and Mafube 10 approved 85 Dawson projects Cerrejon 1&2 Actual a
Slide 14: Significant iron ore potential
Significant iron ore potential Iron ore projects mt 100 Current 80 production: 31mt Faleme Pellets Unapproved projects 60 SEP 2 Phase 1 Phoenix (37mtpa) Sishen South 40 Thabazimbi SEP extension SEP 1 Actual and 20 approved projects Sishen (44mtpa) 0 2005 2007 2009 2011 2013 2015 14 14 October 2006
Slide 15: Platinum projects on track
Platinum projects on track Platinum production growth PPRust North m oz Expansion project 4 approved H1 06 - $692m 3.6 Open pit 3.2 230 000 additional 2.8 oz of refined platinum pa in 2009 • 2.45m oz in 2005 2.4 • 2.7 - 2.8m oz in 2006 • 5% growth thereafter 2 2004 2005 2006 2007 2008 2009 201
Slide 16: Summary
Summary • A successful first half • Record earnings • Additional buyback of $4bn; special dividend of $1bn • Significant progress in delivering strategic goals • Significant growth prospects underpinned by project pipeline • Strong second half forecast should metal prices stay at or close to current