Anglo American plc · LSE:AAL
Anglo American — Investor Presentation (November 2006)
29 slides from Anglo American's investor presentation, Nov 28, 2006
Slide 1: Creating Value for South Africa
CREATING VALUE FOR SOUTH AFRICA Media & Analysts Lunch 28 November 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 (Financi
Slide 2: Anglo American Group: 10 Years of Structural Transformation
Anglo American Group: 10 Years of Structural Transformation 2 Slide 2 Media & Analysts Lunch – 28 November 2006
Slide 3: The Old Anglo – A Complex Structure
The Old Anglo – A Complex Structure 50% 29.4% De Beers Centenary AG 5.2% 23.4% B1 Main St NOM 52% Anamint 13.7% 23.7% 9.5% 8% 6.8% Oppenheimer Family SA Mutual Debswana Diamond 10.2% 10% 5.3% Foreign Shareholders 6.3% De Beers Anglo 8.5% 8.2% 49.7% 6.5% 44.5% West Deep MINORCO 35.8% 43% 8.3% Sanlam
Slide 4: Now transformed into a $70bn global, focused mining company
Now transformed into a $70bn global, focused mining company Base Metals Market Market cap: cap: May May 1999 1999 Market Market cap: cap: Nov Nov 2006 2006 $20bn $20bn Industrial $71bn $71bn Coal Minerals $15.6bn of $11.6bn of acquisitions since disposals since 1999 1999 Diamonds Ferrous Metals Plat
Slide 5: Transformation of Anglo American South Africa - Ongoing Progress
Transformation of Anglo American South Africa - Ongoing Progress 5 Slide 5 Media & Analysts Lunch – 28 November 2006
Slide 6: Anglo American in South Africa Since plc listing in 1999
Anglo American in South Africa Since plc listing in 1999 South Africa’s Largest Private Sector Investor R Shareholder value created 350bn (increase in market value of AA plc shares) Total SA Sales 507bn 1999 - 2005 Total export sales 290bn Net capital inflows after dividends 67bn Total payroll spend
Slide 7: Transformation: Ownership – Major BEE Transactions and Joint Ventures
Transformation : 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 R40bn • Other BEE transactions: African Life, JCI, Johnnic, Mondi Shanduka, Scaw
Slide 8: Anglo committed to HDSA empowerment and transformation
Anglo committed to HDSA empowerment and transformation • Value of Anglo HDSA transactions R64 billion (2006 money) – R35 billion via HDSA transactions and R29 billion HDSA procurement • Anglo was instrumental in the formation of today’s leading BEE mining houses in South Africa • Anglo’ has made exc
Slide 9: AngloGold Ashanti: Began empowerment initiatives prior to Mining Charter
AngloGold Ashanti: Began empowerment initiatives prior to Mining Charter • AngloGold Ashanti completed a number of asset sales to companies owned by HDSAs in the past seven years. These sales transferred 20% of AngloGold Ashanti’s attributable production in SA to HDSAs • In addition, AngloGold will
Slide 10: Anglo Coal: Began empowerment initiatives prior to Mining Charter
Anglo Coal: Began empowerment initiatives prior to Mining Charter • Current 21% HDSA participation (Eyesizwe and Leeuw Mining). Proposed BEE transactions increase empowerment to over 26% • Anglo Coal has approached BEE ownership through two methods: 9 Transferring numerous smaller reserves to HDSA c
Slide 11: Anglo Coal: Significant Black Empowerment
Anglo Coal: Significant Black Empowerment • In 2001 Anglo Coal waived its participation rights in the RBCT expansion in order to give black economic empowerment partners a meaningful stake in this world class export facility • Richards Bay Coal Terminal expansion from 72 Mtpa to 92 Mtpa of which at
Slide 12: Exxaro: Largest black owned, managed and controlled Company
Exxaro : Largest black owned, managed and controlled Company • Significant support by Anglo and Kumba • Meaningful and sustainable BEE introduced into Kumba through: – Creation of Exxaro with coal, heavy minerals, zinc and iron ore assets (market capitalisation of R20 billion) – Partial separation a
Slide 13: Exxaro: Largest black owned, managed and controlled Company
Exxaro : Largest black owned, managed and controlled Company • 26% HDSA shareholding in Sishen Iron Ore Company on day one • Women’s groups will hold approximately 17.8% of BEE Holdco • Exxaro has an attractive investment case with significant growth potential: – 2nd Largest titanium slag producer g
Slide 14: De Beers: Broad Based BEE transaction
De Beers: Broad Based BEE transaction • 26% equity interest for R3.8 billion in De Beers SA sold to Ponahalo • This transaction has created a new generation broad based, black empowerment company • Innovative Broad Based transaction as Ponahalo is: – 50% De Beers SA based employees and pensioners –
Slide 15: Anglo Platinum: Further Empowerment Transactions Developing
Anglo Platinum: Further Empowerment Transactions Developing • Anglo Platinum’s strategy has focused on HDSA participation at an operational / asset level - enabling skills and knowledge transfer & providing empowerment partners with sustainable access to future growth • Offset principle applies (som
Slide 16: Mondi BEE Transactions
Mondi BEE Transactions • Mondi initiated the first major BEE transactions in the South African paper and packaging sector • In 2004, Mondi concluded a R1.1 billion newsprint BEE transaction with Shanduka with BEE ownership of: – 42% Shanduka; and – 8% other broad based BEE • In 2005, Mondi concluded
Slide 17: Employee ownership
Employee ownership • Anglo is committed to ensuring that employees are an integral part of its transformation strategy • ESOPs are being implemented across the Group as specific circumstances dictate: 9 Mondi ESOP enables employees to participate in 4% of Mondi Shanduka Newsprint and 5% of Mondi Pac
Slide 18: BEE Procurement & Enterprise Development
BEE Procurement & Enterprise Development 18 Slide 18 Media & Analysts Lunch – 28 November 2006
Slide 19: BEE Procurement and Enterprise Development
BEE Procurement and Enterprise Development • BEE procurement and business development spend (including Anglo Zimele) increased significantly from R0.3 billion in 1998 to R9 billion in 2005 (excluding De Beers) • 2005 HDSA procurement as % of total available spend continues to increase from 17% (2004
Slide 20: Anglo Zimele Business Development
Anglo Zimele Business Development Anglo Zimele • Investments collectively turned over R561 million in 2005 from R264 million in 2004 • Currently invested in 38 businesses employing over 2900 people Anglo Khula Mining Fund • Investments collectively turned over R216 million in 2005 from R87 million i
Slide 21: Anglo American – A Leader in Corporate Social Responsibility
Anglo American – A Leader in Corporate Social Responsibility 21 Slide 21 Media & Analysts Lunch – 28 November 2006
Slide 22: Chairman's Fund Special Projects & HIV/AIDS Partnerships
Chairman’s Fund Special Projects & HIV/AIDS Partnerships • The Anglo Chairman’s Fund is a dedicated instrument through which the Anglo Group companies are committed to the upliftment and development of South African communities • Since 1999 the Anglo Chairman’s Fund and the AngloGold Ashanti Fund an
Slide 23: Anglo American's Commitment to Growth in South Africa
Anglo American’s Commitment to Growth in South Africa 23 Slide 23 Media & Analysts Lunch – 28 November 2006
Slide 24: Anglo's investment in mining in SA
Anglo’s investment in mining in SA • Anglo’s restructuring and BEE deals have released large amounts of capital for reinvestment in South Africa • Since 1999 Anglo has invested R123.8 billion (R144.5 billion in 2005 Rands) in new projects, expansion and capital replacement, in the process directly a
Slide 25: A Strong SA Project Portfolio
A Strong SA Project Portfolio $3.2bn of approved projects MEREBANK LEBOWA $174m SEP Extension $179m SASA marine $195m $52m ISIBONELO MARIKANA JV INYANDA $65m $18m MAFUBE $30m $132m TICOR 2 MOAB PPRUST NORTH FINSCH $54m KHOTSONG $692m $130m $288m BLACK MTN $110m VOORSPOED MPONENG $80m KROONDAL $80m $
Slide 26: Significant Coal Potential
Significant Coal Potential Coal pipeline mt 120 Saddler's Creek 115 MacWest Heidelberg 110 Elders 105 Future SA projects could 100 add an additional 25mtpa New Largo 95 if approved 90 Zondagsfontein Mafube 85 Dawson Cerrejon 1&2 Actual production & 80 approved projects 75 Current 81.3mt (89mtpa by 2
Slide 27: Significant Iron Ore Potential
Significant Iron Ore Potential Iron ore projects mt 100 80 Current production: 31mt Faleme Unapproved Pellets projects (37mtpa) 60 SEP 2 Phase 1 Phoenix Sishen South SEP extension 40 Thabazimbi SEP 1 Actual and approved projects 20 (44mtpa) Sishen 0 2005 2007 2009 2011 2013 2015 27 Slide 27 Media &
Slide 28: Anglo: World Leader in Platinum
Anglo: World Leader in Platinum Platinum production growth – PPRust North $1.1bn of approved Pt projects Replacement project approved in 2005 m oz 4 Expansion project approved in H1’06 – 3.6 total - $692m (R5.3bn) 3.2 Open pit 2.8 • 2.45m oz in 2005 230 000 additional 2.4 • 2.7 - 2.8m oz in
Slide 29: Anglo American remains fully committed in South Africa
Anglo American remains fully committed in South Africa: 1. To transformation & meeting BEE requirements 2. To training & developing high calibre black & HDSA management 3. To remaining the leader in corporate social responsibility through the Anglo Chairman’s Fund 4. To developing share ownership pa
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