Anglo American Plc · LSE:AAL
Anglo American — FY2004 Earnings Presentation
15 slides from Anglo American's earnings presentation, Feb 28, 2005
Slide 1: Anglo American: Meeting the World's Needs, 2004 Annual Results
ANGLO AMERICAN MEETING THE WORLD’S NEEDS 28 February 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)
Slide 2: Highlights
Highlights • Record results: - Headline earnings up 59% at $2,689m • Cash generation (EBITDA) up by $2.3bn to $7,110m • Total dividend up 30% at 70c per share • Record performances from Base and Ferrous Metals • $1.5bn of projects completed: $4.7bn project pipeline on track • Ongoing optimisation of
Slide 3: Headline earnings by business unit
Headline earnings by business unit 6% 12% 9% 18% 6% 25% 10% 14% 14% 23% 13% 10% 16% 12% 14% 39% 2003 2004 Platinum Gold Diamonds Coal Base Metals Industrial Minerals Paper and Packaging Ferrous and Industries 3 2004 Annual Results
Slide 4: Balance sheet
Balance sheet $m 31/12/2004 31/12/2003 Shareholders’ Funds 24,998 19,772 Net Debt: South Africa 3,337 3,145 Rest of World 4,784 8,121 5,488 8,633 Minority Interests 4,620 3,396 Total Capital 37,739 31,801 Net Debt/Total Capital 21.5% 27.1% ROCE 13.4% 10.7% EBITDA/Total Capital 20.4% 17.3% 4 2004 Ann
Slide 5: EBITDA increases across the Group
EBITDA increases across the Group $1,626m 1,600 1,400 $1,249m 1,200 $996m 1,000 $867m 800 $686m $688m $701m $624m 600 400 +12% +36% +8% +9% +29% +2% +183% +186% 200 0 Industrial Coal Diamonds Gold Platinum Paper and Ferrous Base 2003 Minerals Packaging Metals and Metals 2004 Industries 5 2004 Annual
Slide 6: 2004: Improved cashflow returns
2004: Improved cashflow returns Cash flow return 35.0% 30.0% 31.8% 25.0% Group: 20.4% 24.9% 20.0% 23.3% Group: 17.3% 20.5% 18.8% 15.0% 16.2% 16.8% 14.6% 10.0% 5.0% 0.0% Platinum Industrial Gold Paper and Ferrous Diamonds Coal Base Minerals Packaging Metals and Metals Industries 2004 Cash flow return
Slide 7: Our strategy for growth
Our strategy for growth GROWTH THROUGH GROWTH THROUGH VALUE FROM COST PROJECTS ACQUISITIONS CUTTING AND EFFICIENCIES Grow shareholder value Invest where Invest in NPV+ we have core opportunities competence Ability to identify, acquire and develop world-class asset positions Business Cost of World-cl
Slide 8: Successful project execution
Successful project execution GROWTH THROUGH PROJECTS • Commenced commissioning in March 2004 • Under budget Skorpion Collahuasi Rosario • Expected to achieve design Zinc capacity (800,000tpa) well Copper ahead of schedule $454m $288m Buxton • World’s first solvent extraction treatment • Commissioned
Slide 9: Successful project execution
Successful project execution GROWTH THROUGH PROJECTS Ruzomberok • Fully commissioned ahead of schedule during 2004 Pulp and Paper • Improved smelting recoveries and unit cost reduction $233m ACP • $233m paper and pulp expansion completed end 2004 Platinum • Additional 110,000t of paper and 105,000t
Slide 10: Substantial long term project portfolio
Substantial long term project portfolio GROWTH THROUGH APPROVED: UNAPPROVED: PROJECTS $4.7bn $8bn QUELLAVECO SISHEN SOUTH Copper Iron ore MEREBANK COLLAHUASI OBUASI DEEPS SIGUIRI EXPANSION $174m ISIBONELO Gold $52m Copper $65m RICHARDS BAY W.L. TAILINGS GAMSBERG MORRO SEM $235m INYANDA TICOR 2 $186m
Slide 11: Transforming the asset base
Transforming the asset base GROWTH THROUGH ACQUISITIONS $15bn acquired M an Fr Co to an s al An 99- ts Bl An (19 Co glo 20 ch u er e x an Ass be gl 99- l o G o 04) ac co Ba pam o m (1 s h Pl 200 bi ld Ru ell C La 9 C m ac k Sh ma m i nd at 4 Di he a Sy o De ities As ity zo oa in Ro N Ku ar in ) an i
Slide 12: Record cost savings and efficiencies
Record cost savings and efficiencies VALUE FROM COST CUTTING AND EFFICIENCIES $1.2bn since 2002 TARGETED $250m 2002 ACHIEVED $279m TARGETED $200m 2003 ACHIEVED $335m TARGETED $250m 2004 ACHIEVED $554m 2005 TARGETED $350m 12 2004 Annual Results
Slide 13: 2004: Cost savings from all operations
2004: Cost savings from all operations VALUE FROM COST CUTTING AND EFFICIENCIES $554m….. Offsetting real cash cost increases $m 160 $144m 140 120 $103m 100 $80m 80 $63m $51m $64m 60 $47m 40 20 0 Platinum Gold Coal Base Metals Industrial Paper and Ferrous and Materials & Supplies Labour Minerals Pack
Slide 14: Outlook
Outlook • Positive global environment for commodities • China growth story continues but OECD leading indicators point to a slower pace of growth • Weak US dollar: actively managing the cost base • Anglo’s product and geographic diversity, organic growth and strong cash generation to underpin perfor
Slide 15: Anglo American: Meeting the World's Needs
ANGLO AMERICAN MEETING THE WORLD’S NEEDS 23 February 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)