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Merrill Lynch Conference

ANGLO AMERICAN A WORLD OF DIFFERENCE Merrill Lynch Conference 12 May 2004.

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Merrill Lynch Conference

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  1. ANGLO AMERICAN A WORLD OF DIFFERENCE Merrill Lynch Conference 12 May 2004 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) Order 2001 (the “Order”) or (b) high net worth entities, and other persons to whom it may otherwise lawfully be communicated, falling within Article 49(1) of the Order (all such persons together being referred to as “relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. Merrill Lynch Conference

  2. Why Anglo American? • High quality assets • Financial strength • Strong cashflow returns • Investing for growth

  3. Platinum 12% Industrial Minerals 16% Diamonds 23% Paper and Packaging 22% Ferrous & Industries 6% Gold 10% Base Metals 12% Coal 14% Diversified Profile Geographic headline earnings mix - 2003 Headline earnings by business unit - 2003 Rest of World 22% Europe 26% Americas 18% South Africa 34%

  4. Shareholder value • Significant increase in shareholder value since 1999¹ ¹Total Shareholder Return (TSR) with dividends reinvested

  5. Strategy Focused strategy based on: • Growth through projects • Growth through acquisitions • Value from cost cutting and efficiencies

  6. m ozs ’000 tonnes 2.36 709 85 2.02 600 2,0 424 1,6 45 200 Copper +67% Platinum +17% 1,2 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003 m tonnes ’000 tonnes 47 87 50 30 40 62 30 20 Coal +40% Nickel +57% 10 0 1999 2000 2001 2002 2003 m carats ’000 tonnes 43.9 45 2,4 400 360 2,2 350 300 31.45 35 105 800 40 1,8 250 200 121 150 400 65 30 1,4 100 25 Diamonds +40% Zinc +197% 50 25 1,0 20 0 0 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003 Production Growth Through organic growth and acquisition AA plc has shown significant production growth in most of its products

  7. m tonnes 000 tonnes 1600 67.2 2,381 26.7 923 Aggregates +152% Packaging Papers +158% 1999 1999 1999 1999 2000 2000 2000 2000 2001 2001 2001 2001 2002 2002 2002 2002 2003 2003 2003 2003 1400 1200 m tonnes Units m 2,723 1000 800 1.04 600 80 50 400 70 0.59 200 611 60 0 Phosphates +76% Industrial sacks +346% 3000 3000 40 10 2500 2500 30 2000 2000 20 1999 2000 2001 2002 2003 1500 1500 1000 1000 500 500 0 0 0 000 tonnes 1,490 1,5 1800 1500 1200 560 900 1,0 0,5 600 UCWF +166% 300 0 0 1999 2000 2001 2002 2003 Production Growth Through organic growth and acquisition AA plc has shown significant production growth in most of its products m m² 1,683 700 Corrugated Packaging +140%

  8. Growth through Projects A balanced $6bn approved Project Portfolio Kleinkopje $56m Merebank $150m Isibonelo $65m W.L. Tailings $186m Buxton $173m Key: Base Metals Diamonds Paper & Packaging Industrial Minerals Platinum Coal Gold Ferrous Metals Skorpion $454m Ticor $191m Finsch $130m Richards Bay $221m Moab Khot. $690m Cerrejón $17m HBMS 777 $276m Black Mtn $110m PMR Expan. $99m Collahuasi $288m Ruzomberok $233m TauTona $169m RPM Ph 2 $444m ACP Project $250m Dartbrook $55m RPM Ph 1 $210m Grasstree $106m BRPM $317m Twickenham $343m Mponeng $191m 2004 2005 2006 2007 2008 Selected major authorised projects. 100% of subsidiaries and AA plc’s share of JV’s and associates. Full production dates.

  9. An extensive unapproved Project Pipeline NAME PRODUCT LOCATION ESTIMATED COST ($BN) • WESTERN COMPLEX COAL SOUTH AFRICA 0.3 • MORRO SEM BONE NICKEL BRAZIL 0.7 • GAMSBERG ZINC SOUTH AFRICA 1.0 • QUELLAVECO COPPER PERU 0.9 • BARRO ALTO NICKEL BRAZIL 0.7 • SISHEN SOUTH IRON ORE SOUTH AFRICA 0.3 • HOPE DOWNS IRON ORE AUSTRALIA 1.2

  10. Exposure to China Operations & Projects Trading: $1.1bn • Tarmac quarry • Boart mining equipment manufacturing • Paper and packaging plants • Coal and platinum exploration Other $170m Platinum $420m Gold $120m Iron Ore $130m Diamonds $250m

  11. Key acquisitions: Delivering value Mondi Europe Acquired: since 1999 Price: $1.7bn EBITDA/Total Cap: 23% Tarmac Acquired: Mar 2000 Price: $1.1bn EBITDA/Total Cap: 16% Syktyvkar Acquired: Mar 2002 Price: $0.3bn EBITDA/Total Cap: 23% Coal Colombia & CDG Acquired: 1997- 2002 Price: $0.5bn EBITDA/Total Cap: 21% Minera Sur Andes Acquired: Nov 2002 Price: $1.3bn EBITDA/Total Cap: 16% Shell Coal Acquired: 2000 Price: $0.9bn EBITDA/Total Cap: 18%

  12. Delivering Value fromCost Savings 2003

  13. Key Financials • Group Turnover: $24.9bn • EBITDA: $4.79bn • Headline Earnings: $1,694m • Gearing: 26.6% Single A credit rating

  14. 900 850 800 750 10.00 Average price: 692 $/oz 700 9.50 650 9.00 600 8.50 550 8.00 Platinum +28% 500 7.50 7.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 6.50 6.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average price: 363 $/oz 2.00 1.90 Gold +17% 1.80 1.70 440 Average A$/US$: 1.53 Jan Feb Apr Jun Aug Oct Nov Dec Mar May Jul Sep 1.60 420 1.50 400 380 1.40 1.30 360 110 Average price: 81 c/lb 1.20 340 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 100 1.10 320 A$/US$ 17% stronger 90 1.00 300 80 Copper +14% 70 60 Jan Feb Apr Jun Aug Oct Nov Dec Mar May Jul Sep 50 Currency & commodity impact Negative impact of weaker US$: $578m ..only partially compensated by positive impact from stronger prices: $400m Average ZAR/US$: 7.55 ZAR/US$ 28% stronger Percentages shown represent the change from average 2002 to average 2003

  15. Anglo Base Metals • Radical restructuring of portfolio • Strong focus on improving capital and operating efficiency • Attractive low cost brownfield expansion opportunities • Good greenfield project pipeline • Well positioned to benefit from upturn in base metal prices

  16. A Radical Restructuring 2001 2004 COLLAHUASI (44%) HBMS (100%) MANTOS BLANCOS (99.9%) MANTOVERDE (99.9%) CODEMIN (90%) BLACK MOUNTAIN (100%) PALABORA (29%) NAMAKWA SANDS (100%) LOMA DE NÍQUEL (91%) BARRO ALTO (100%) LISHEEN (62%) COLLAHUASI (44%) HBMS (100%) MANTOS BLANCOS (99.9%) MANTOVERDE (99.9%) CODEMIN (90%) BLACK MOUNTAIN (100%) PALABORA (29%) NAMAKWA SANDS (100%) LOMA DE NÍQUEL (91%) BARRO ALTO (100%) MINERA SUR ANDES (100%) SKORPION (100%) LISHEEN (100%) CORE KONKOLA (33%) ANACONDA (23.7%) BINDURA (52.9%) SALOBO (50%) NKOMATI (25%) BCL (23%) TATI (43.4%) SOLD Blue – Core and acquisitions Red – Disposals

  17. Copper Market Overview

  18. Competitive Position C1 Cost (2004 c/lb) 100 2003 Copper Mine Direct Cash C1 Operating Costs (c/lb) as a function of Annual Mine Output ('000 t) 90 Individual Mine Output shown by Area of Circle 80 (Normal Costing, Paid Production) 4 70 1. Collahausi (44%) 2. Los Bronces (100%) 3. El Soldado (100%) 4. Mantos Blancos (100%) 3 5. Mantoverde (100%) 60 5 50 2 1 40 30 20 10 Grasberg (Cu/Au) Annual Copper Mine Production ('000 t, paid) 0 0 200 400 600 800 1000 1200

  19. Acquisitions: Minera sur Andes • Acquired for US$1.3 bn in November 2002 • 2003 operating profit US$128m and ROCE 10% (at an average Cu price of 81 c/lb) • US$17m p.a. of synergies identified to date – full benefit from 2004 onwards • Additional proven and probable reserves identified to date 368Mt @ 0.75 % Cu (2.76 Mt contained Cu) • Agreement signed with Andina to exploit synergies

  20. Copper Project Pipeline • Collahuasi Rosario Project: Maintains production >400,000t/y; Further major expansion potential • Bronces expansion phase I: Incremental 14,000 t/y Cu • El Soldado “big pit”: Incremental 12,500 t/y Cu, extends life to 2022 • Chagres smelter debottlenecking: 158,000 to 184,000 t/y anode • Bronces expansion phase II: incremental 180,000 t/y Cu • Quellaveco project

  21. Zinc • Significant zinc producer (360,000 tpa) • $454m Skorpion project set to be one of lowest cost producers • Lisheen ownership increased to 100% • Exports from China constrained by concentrate shortage • Longer term outlook influenced by significant mine depletion and limited new investment

  22. AngloGold Ashanti • AngloGold/Ashanti $1.4bn merger completed • Combined annual production c.7m oz • Strong reserve position: 84 m ozs • Significant potential at Obuasi Deeps

  23. Anglo Platinum • Global leader in PGMs – c. 40% Pt mkt share • Platinum demand remains robust • Pt production in 2006 forecast at 2.9m oz (+26% from 2003) • $2bn capital investment programme

  24. Coal • Strong thermal and coking markets • Constraints on Chinese and Indonesian thermal coal availability   • Australian H1 production impacted by Moranbah North – recovery to full output H2 • Cerrejón set to increase by 6m tpa to 28m tpa by 2007

  25. IMD and Paper and Packaging Industrial Minerals • Largest UK producer of aggregates & blacktop • $200m of acquisitions in continental Europe since 2000 - now the leading aggregates producer in Czech Republic and the leading paver producer in Poland (new EU entrants) • New quarry in China being commissioned • Buxton cement plant successfully commissioning Paper and Packaging • Key product lines: • Uncoated Woodfree Paper; • Packaging (industrial, corrugated and flexible)  • Highest ROCE within European paper and packaging sector Strong Cash Generation • IMD + Paper and Packaging combined EBITDA of $1.5 bn

  26. Value creation Cost of capital 8-12% Value destruction Paper and Packaging Sales growth vs. ROCE 1999-2003P* - Average pre-tax return on capital employed (ROCE), % - 20 Mondi 15 Sappi SCA 10 UPM Domtar M-Real Stora Enso J. Smurfit 5 MeadWestvaco Int’l Paper Average growth rate 8.0% 0 -10 0 10 20 30 - Average sales growth in USD, %/a - Size of the bubble is relative to the sales in USD in 2003 * 2003 figures from preliminary results Source : Jaakko Pöyry

  27. Iron ore: A new market • Acquired 67% of Kumba Resources • 4th largest exporter of iron ore • Significant expansion potential:- • SA – Sishen South (± 10 mtpa) • Australia – Hope Downs (± 25 mtpa)

  28. Outlook • Macro outlook positive • Geographic and commodity diversity will underpin performance • Strong EBITDA generation, good growth for 2004

  29. ANGLO AMERICAN A WORLD OF DIFFERENCE Merrill Lynch Conference12 May 2004 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) Order 2001 (the “Order”) or (b) high net worth entities, and other persons to whom it may otherwise lawfully be communicated, falling within Article 49(1) of the Order (all such persons together being referred to as “relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. Merrill Lynch Conference

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