Anglo American plc · LSE:AAL
Anglo American — Bulks Seminar & Site Visit 2019
10 slides from Anglo American's conference presentation, Nov 12, 2019
Slide 1: Metallurgical Coal Markets
METALLURGICAL COAL MARKETS Rod Elliott, Head of Metallurgical Coal Marketing Bulks Seminar & Site Visit: Brisbane, 12 November 2019 Dawson
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: Premium Products to High Value Customers
PREMIUM PRODUCTS TO HIGH VALUE CUSTOMERS 3rd largest global 73Mt seaborne producer1 24Mt 23Mt 14Mt 13Mt 11Mt 10Mt BHP / Mitsubishi Teck Anglo American Coronado Glencore Peabody Yancoal China Diversified customer Atlantic & 6% base with long-term Turkey North Asia 12% 60% partners1 India 22% 33
Slide 4: Right Products, Right Customers, Right Time
RIGHT PRODUCTS, RIGHT CUSTOMERS, RIGHT TIME 3 operations2 Blending allows 3 port facilities 14 saleable products Integrated Sales and Operational Planning (ISOP): maximising value in real time 44
Slide 5: Asia Urbanisation Driving Demand Growth
ASIA URBANISATION DRIVING DEMAND GROWTH Seaborne demand growth driven by Demand shift towards quality Hard China & India Coking Coal Global seaborne demand (Mtpa) % HCC of total metallurgical coal demand 59 ~2% 350 Equivalent to 313 +25Mt 57 56 +24% 2019 2025F 2019 2025F 2035F Rest of World China In
Slide 6: India: Steel Growth Driving Demand for Seaborne Metallurgical Coal
INDIA: STEEL GROWTH DRIVING DEMAND FOR SEABORNE METALLURGICAL COAL Limited domestic metallurgical coal production pushes demand for imports +5.1% pa 85Mt 63Mt 2019 2025F ~75% of seaborne metallurgical coal imported from Australia 66
Slide 7: China: Consolidation in Steel Manufacturing
CHINA: CONSOLIDATION IN STEEL MANUFACTURING 5-10 million tonnes of HCC demand in next five years as mills move to the coast Steel making capacity shift to coastal regions to gain market access Major coking coal production area of Ansteel Shanxi CITIC Qingdao Environmental agenda, emissions reduction
Slide 8: Market Segmentation and Product Differentiation Drives Highest Value Placement of Products
MARKET SEGMENTATION AND PRODUCT DIFFERENTIATION DRIVES HIGHEST VALUE PLACEMENT OF PRODUCTS Long term agreements Target highest value opportunities 12% 20% 17% 17% 15% 12% 2019 16% 2024 Target 16% 7% 6% 7% 7% Customer base3 22% 26% Japan Korea Taiwan India China Atlantic Other 88
Slide 9: Our Quality Products
OUR QUALITY PRODUCTS High margin products Value uplift through blending Product quality split4 H1 2019 price realisation ($/t) 7% 6% Lower margin 23% 14% 12% +7% 20% 19% 187 79% 81% 38% 175 Higher margin 2012 2019 Long-term target Market5 Achieved price Thermal Domestic Thermal Export PCI HCC 99
Slide 10: Footnotes
FOOTNOTES 1. Annual Reports / Wood Mackenzie. All figures are attributable tonnes. BHP includes Mitsubishi share. 2. Jellinbah JV product marketed independently. 3. Anglo American attributable share excluding Jellinbah. 4. Anglo American attributable share including Jellinbah & domestic sales. 5. We