Anglo American plc · LSE:AAL
Anglo American — Mining Indaba 2007
13 slides from Anglo American's conference presentation, 2007
Slide 1: Anglo American's growth and investment in South Africa
Anglo American’s growth and investment in South Africa Philip Baum Anglo American South Africa Ltd 1 Anglo American South Africa Ltd
Slide 2: A once-in-a-generation confluence of positive forces?
A once-in-a-generation confluence of positive forces? • Record-high commodity prices. • Improving growth performance • Rising levels of FDI. • Search for new deposits. • Africa is the major source of many of the globe’s unexploited mineral reserves. 2 Anglo American South Africa Ltd
Slide 3: Anglo American… a focussed global mining company
Anglo American… a focussed global mining company Base Industrial Ferrous Paper and Platinum Diamonds Coal Gold Metals minerals Metals Packaging Mondi to be Shareholding separately in AGA listed reduced to in 2007 41.8% Precious metals and Bulk and Base Metals minerals 3 Anglo American South Africa L
Slide 4: Strong operational & share price performance
Strong operational & share price performance 1999-2006 • Compound annual growth rates: – EPS: 21% pa – EBITDA: 19% pa – DPS: 16% pa • Since 1999 total shareholder return (incl dividends) +275% in US$ - versus +15% in FTSE 100 • In Rand terms Anglo American share price +540% since 1999 – versus +316%
Slide 5: South Africa: one of the central pillars of the Group's current operations
South Africa: one of the central pillars of the Group’s current operations… Operating profit* Net Assets H1 2006 H1 2006 Other Other 10% 8% South Americas Africa 17% South 40% Africa 42% Americas 40% Europe Europe 33% 10% R28 747m ($4 563m) R170 347m ($27,039m) * Before special items & remeasurement
Slide 6: … and its future
… and its future • From 1999-June 2006 Anglo SA: Gross fixed capital formation (annual) American invested R129bn (R154bn in 2006 Rands) in South 250 Africa. 225 • This makes Anglo by far the largest private sector investor in 200 Anglo American – SA over this period. investment in South Africa 175 •
Slide 7: Supported by a strong project pipeline in SA and the rest of the world
Supported by a strong project pipeline Project in SA and the rest of the pipeline world Zondagsf’tn Heidelberg New Largo MacWest Elders 7 Anglo American South Africa Ltd
Slide 8: Providing significant growth potential
Providing significant growth potential African Exploration Base Platinum Iron ore +161% Coal Industrial Minerals Diamonds Unapproved Gold projects (37mtpa) +52% +36% Unapproved 5% pa growth to projects 2010 (28mtpa) Actual and approved projects Actual and 2006 approved (44mtpa) 2.7-2.8m oz Current C
Slide 9: Ownership: Major BEE Transactions and Joint Ventures
Ownership: Major BEE Transactions and Joint Ventures • Anglo American has been the catalyst in the formation of today’s leading BEE South African mining houses with an estimated market capitalisation of R43bn • Other BEE transactions: African Life (R0.3bn), JCI (R5.6bn), Johnnic (R2.6bn), Mondi Shan
Slide 10: Anglo and the SA Mining Charter
Anglo and the SA Mining Charter • Anglo has already achieved 40% HDSA participation in management, but recognises that more is needed at a senior level. • Average spend on skills development by the top 200 listed SA companies is 2.8% of payroll cost - Anglo SA is 3% of payroll. • In addition, Anglo
Slide 11: BEE Procurement and Enterprise Development
BEE Procurement and Enterprise Development • BEE procurement and business development spend (including Anglo Zimele) increased significantly from R0.8 billion in 1999 to R12.3 billion in 2006 (excluding De Beers) – up 37% from R9bn in 2005. • BEE procurement as % of total available spend continues t
Slide 12: Summary and conclusions
Summary and conclusions • South Africa is the birthplace of Anglo American and remains the cornerstone of our global operations. • Our significant investments in South Africa and strong project pipeline will ensure that South Africa retains a central position in Anglo’s operations. • Anglo embraces
Slide 13: Anglo American South Africa Ltd
13 Anglo American South Africa Ltd