Anglo American plc · LSE:AAL
Anglo American — ESG Presentation (June 2008)
34 slides from Anglo American's sustainability presentation, Jun 17, 2008
Slide 1: Anglo American's Sustainable Development Performance 2007
Anglo American’s Sustainable Development Performance 2007 Presentation to the financial community 17 June 2008 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
Slide 2: Agenda
Agenda Chairman’s Overview 1. Group Strategy 2. Investment of Choice • Financial and strategic highlights 3. Partner of Choice • Environmental management • Social performance 4. Employer of choice • Safety • Human resource development and transformation 5. Questions and answers 2
Slide 3: Chairman's Overview
Chairman’s Overview Sir Mark Moody-Stuart 3
Slide 4: Chairman's Overview
Chairman’s Overview • Commodity prices supported by high demand and sluggish supply response – Longer permitting – Community engagement/consent – Water supply issues – Energy constraints – Skills shortages • Largely positive outcome to UN work on Business and Human Rights • Need to respond to driver
Slide 5: Group Strategy
Group Strategy Cynthia Carroll 5
Slide 6: Action on Safety
Action on Safety • Phased shutdown and workforce retraining at Rustenburg Platinum Mine • Two senior leadership conferences on safety • Tripartite safety summit • Increased management focus and resources • Clear commitment to zero harm • Care, respect and dignity at the core 6
Slide 7: A Strong Safety Record = Strong Operating Performance
A Strong Safety Record = Strong Operating Performance • Step change in safety practices being 30 rolled out 25 20 Fatalities • Significant fall in fatalities 15 • Three pillars for our programmes: 10 5 0 H1 '07 H2 '07 YTD '08 Zero Harm Simple, non- Zero Mindset No Repeats negotiable standards 7
Slide 8: From 'Old Anglo' to 'One Anglo'
From ‘Old Anglo’ to ‘One Anglo’ • Limited co-operation • Increased integration between business units and knowledge sharing • Numerous standards • Common standards and and policies policies • Limited exploitation of • Development of shared synergies services Ambition: To Be the Leading Global Mining
Slide 9: A Focused Mining Group
A Focused Mining Group Old Anglo Platinum Diamonds Coal Base Ferrous Ferrous Industrial Gold Paper & Metals Metals Industries Minerals packaging New Anglo Platinum Diamonds Coal Ferrous Metals Base Metals • World’s leading producer of platinum group metals and diamonds • Major and growing force in c
Slide 10: Strategic Highlights
Strategic Highlights • SA Mineral Rights Conversions • Delivering organic growth in core business • Commissioned: – Dawson (coal) – Sishen (iron ore) • Approved: – Copper: Los Bronces, Collahuasi de-bottlenecking – Coal: Zondagsfontein – Platinum: Twickenham1 • Acquired – Copper: Michiquillay, Pebbl
Slide 11: Investment of Choice
Investment of Choice Cynthia Carroll 11
Slide 12: A Strong 5 Year Performance
A Strong 5 Year Performance • Earnings per share: 30% CAGR • Dividend per share: 18% CAGR • Return on Capital Employed increased to 37.8% 37.8 4.40 32.4 3.73 2.58 19.2 1.87 14.6 1.20 10.7 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Earnings per share (US $) ROCE (%) 12
Slide 13: 2007 Financial Highlights
2007 Financial Highlights • Record financial performance – Increased operating profit, up 12% to $8.9bn from core operations1 – Record operating profit on a total Group basis of $10.1bn – Underlying earnings up 5% at $5.8bn – Cost savings at $380m2 • Significant cash returned to investors – Final di
Slide 14: Leading Project Pipeline
Leading Project Pipeline 2010 / 2011 2012 / 2013 2014 and Beyond Los Collahuasi Quellaveco Bronces Expan. 2 Minas-Rio Pebble Zondags- fontein Minas-Rio Phase I expansion Jacaré Amandel- Lebowa Barro bult Michiquillay Sishen Alto Sishen Expan. 2 Sishen Pellets Collah. Expan. 1 South Cerrejon Elders S
Slide 15: Partner of Choice
Partner of Choice Dorian Emmett Edward Bickham 15
Slide 16: Comprehensive Framework of Policies
Comprehensive Framework of Policies Biodiversity Whistle- Climate blowing Change Security Community and Human Engagement Rights Safety Health HIV/AIDS Environment Human Rights* * Our commitment to the Universal Declaration of Human Rights is included in our Business Principles. More detailed policy
Slide 17: Management Standards and Guidance
Management Standards and Guidance Comprehensive Supported by World Class Guidance Documents Suite of “Anglo Way” Standards Exploration Operation Closure SAFETY SAFETY OCCUPATIONAL OCCUPATIONAL HEALTH HEALTH ENVIRONMENT* ENVIRONMENT* • Integrated Sustainable Development Planning SOCIAL++ SOCIAL Guide
Slide 18: Energy and Climate Change
Energy and Climate Change • Redoubled focus on energy efficiency • Responding to energy constraints in South Africa and Chile • Development of the innovative FOOTPRINT model: – Innovative measurement and tracking tool will allow variance tracking in a rapidly evolving business – Based on financial v
Slide 19: Water Management
Water Management • Group “Waterways” summit held • To align our divisional water management strategies and focus on conservation of scarce water resources and prevention of pollution • Adaptation of FOOTPRINT model to measure water efficiency for internal monitoring and external reporting • Commissi
Slide 20: Biodiversity / Land Stewardship
Biodiversity / Land Stewardship • 2003 Target – all operations to have a Biodiversity Action Plan • Focus on sensitive biodiversity and risks and opportunities • 2004 Group Guideline on how to compile a Biodiversity Action Plan • 2005 Group biodiversity peer review. Target 10 sites per year • 2005:
Slide 21: Distribution of Benefits - 2007
Distribution of Benefits - 2007 Total: $28.4 billion • The benefits of our operations are widely distributed • Total taxes generated by Anglo = $3.833 billion • Effective corporation tax rate is 33% * Includes income and other taxes paid by employees, but excludes taxes paid by shareholders on divid
Slide 22: Geographic Distribution
HD BG8can Geographic Distribution VALUE ADDED REGIONALLY Suppliers (MANAGED COMPANIES) $ MILLIONS 15,000 q 12,000 a _—————— 9,000 6,000 3,000 . Suppliers: total 11,042 | e Africa 4,921 c — | e Europe 3,399 , ; e North America 138 e Africa 6,807 — e South America 4,621 South Ameri 1,698 Europe 1,687
Slide 23: Social Initiatives
Social Initiatives • SEAT 2 rollout • HIV/AIDS: –intention to provide ART to dependents –innovative community projects • Awards for enterprise development: –Zimele small business hub structure –Chile EMERGE 23
Slide 24: Social Initiatives
Social Initiatives • Increasing focus on social performance during early stages: –Pebble • Independently facilitated stakeholder dialogue • Established Pebble Fund –Michiquillay, Peru –Quellaveco, Peru • Global partnerships with CARE International and Fauna and Flora International 24
Slide 25: Resettlement
Resettlement South Africa – Anglo Platinum • Mothlotlo resettlement 85% complete • Significant improvement in housing and community infrastructure • Intense consultation • Better and more agricultural land • Water issues • Post-resettlement economic development and monitoring Colombia – Cerrejon Coa
Slide 26: Engaging with Governments
Engaging with Governments • Improved relationship with South African Government and partnerships on: – safety – enterprise development – maths and science education • In Chile leadership recognised on: – enterprise development – climate change – workforce diversity • Established Government Relations
Slide 27: Employer of Choice
Employer of Choice Russell King 27
Slide 28: Safety
Safety • Safety – a core value Zero Mindset • Safety Risk Management Programme • Peer review programme to assess No Repeats quality and learning spread Simple, non- • Anglo Fatal Risk Standards negotiable • Global standards implemented standards over 3 years 28
Slide 29: Anglo Safety Risk Management Process
Anglo Safety Risk Management Process PURPOSE To establish and embed a world class ‘One Anglo’ safety risk management process that delivers radical improvement in safety for all our people VISION All our people make the right decisions affecting safety. Process Comms Deployment/ Capacity Verification
Slide 30: The Anglo Fatal Risk Standards
The Anglo Fatal Risk Standards AFRS Programme Objective: to achieve a step change in the control of fatal risks in order to eliminate fatal incidents This will be accomplished by: • The development of Group- wide standards based on global mining experience • Upgrade of current practices to meet new
Slide 31: The Anglo Fatal Risk Standards
The Anglo Fatal Risk Standards AFRS Programme Outcomes: • Uniform risk acceptability throughout Anglo • Consistent and sustainable risk control measures in place • Step forward in systems and procedures commonality in line with the “One Anglo” approach • More opportunities for synergies and efficien
Slide 32: Women in Mining
Women in Mining • We continue to seek better representation of women at all levels • Women in Mining programmes started in 2004 • 15 percent of managers are female – Women are now 17 percent of management in South Africa – Progress in Chile, Brazil and Australia • We will set targets for female part
Slide 33: Education and Training
Education and Training • Training costs were about 5 percent of total employment costs in 2007: – 1,180+ bursaries – 1,977 apprenticeships – 656 other trainees • Anglo Platinum investing $40 million in new centre to train 1,200 people per annum • Increased support for basic education in South Africa
Slide 34: Thank you / Questions
AN aN e Thank you ¢e Questions