2. 2
Agenda
• Cynthia Carroll, CEO:
– Operational review of 2008
– Positioning Anglo American through the cycle
• René Médori, FD:
– Financial review of 2008
• Cynthia Carroll:
– Outlook
• Question and Answer session
4. 4
Summary
• Strong performance in 2008
– Major improvement in safety record
– Record operating profit from core operations
– Secured new order mining rights across Anglo American’s businesses in South Africa
• Substantial progress on our key strategic initiatives
– New $1 billion operating profit target from Asset Optimisation
– Continued delivery on cost reduction programmes
– Further portfolio restructuring and enhancements
• Significant reduction of commodity prices in H2
• Positioning Anglo American through the cycle
– 2009 capital expenditure reduced by over 50%
– Cost reduction programme underway
– Dividend payments suspended
– Long term growth options preserved, new projects well timed to
enter production from 2011
5. 5
Safety
Fatality Rate
LTIFR
2007 2008
• Continued downward trend in fatalities
• 17% improvement in Lost Time Injury
Frequency Rate
• Virtually all major divisions progressed
towards eliminating fatalities and improved
lost time injury rate performance
• Examples of outstanding achievements:
— Anglo Platinum’s Union Mine in South Africa:
more than 6 million fatality-free shifts
— Barro Alto nickel project in Brazil: 966 days
without a Lost Time Injury
— Anglo Ferrous Brazil: 3.5 million hours without a
Lost Time Injury
40
27
Anglo Managed Operations
1.27
1.05
Anglo Managed Operations
6. 6
Record core operating profit
• More than tripling of operating profit in Coal
with record production in all major locations
• Doubling of operating profit in Ferrous Metals
and Industries with record production of iron
ore and manganese ore and alloys
• Strong financial performance in Base Metals
and Platinum despite rapidly deteriorating H2
pricing environment
Base Metals
24%
Platinum
22%
Ferrous
27%
Coal
22%
Diamonds
5%
2008 Split of Operating Profit(1)
Base Metals
46%
Platinum
29%
Ferrous
13%
Coal
7%
Diamonds
5%
2007 Split of Operating Profit(1)
(1) Core operations excluding Corporate Activities and Unallocated costs and Exploration costs
7. 7
Precious
• Refined platinum production of 2.39m oz,
despite flooding at Amandelbult, Eskom load
shedding and safety stoppages
• Improved H2 08: refined production of 1.39m oz;
+38% vs. H1 08 and +8% vs. H2 07
• Targeting 2.4m oz refined platinum production
in FY09
• Production of 48.1 m carats, 6% lower than
2007
• Operating profit (Anglo share) up 5% to $508m
• Three new mines opened in FY08: Snap Lake,
Victor and Voorspoed
• 2009 production will be significantly reduced
2007 2008 2007 2008
Platinum Diamonds
Operating Profit ($m) Operating Profit ($m)
2,697
2,226
484 508
8. 8
Base Metals and Industrial Minerals
• Record production volumes at Los Bronces,
Mantoverde; higher production at Collahuasi
• Sharply lower H2 demand and pricing
environment combined with higher input
costs (e.g. fuel, power, sulphur and sulphuric
acid) for the year
• Targeting 5% growth in copper production in
2009; other base metals production flat
(1) Includes Nickel, Niobium, Mineral Sands and Phosphates
Zinc
Nickel(1)
Copper
2007 2008
4,338
2,505
• Held market share in difficult UK markets
• Successfully maintained Tarmac
International’s operating profit year-on-year
• $101m of cost savings generated
2007 2008
474
228
Base Metals Industrial Minerals
Operating Profit ($m) Operating Profit ($m)
9. 9
• Record operating profit of $2.9bn
– Higher iron ore production, up 13% to 36.7mtpa
at Kumba Iron Ore; higher iron ore and
manganese ore prices, partially offset by higher
costs of fuels & lubricants, labour and mobile
crushing
• Acquired control of Minas-Rio and Amapá
• FY09 production +14% at Kumba Iron Ore,
driven by Sishen Expansion Project
Bulks
• Record operating profit of $2.2bn
– Higher met coal production and higher met and
thermal coal prices, partially offset by higher
royalties, port & rail costs and fuel & power costs
• Rapid decline in global steel production
continues to affect demand for met coal
• Thermal coal demand remains relatively
strong
• FY09 production to decrease year-on-year
2007 2008
2,240
614
South
America
Australia
South
Africa
Coal Ferrous Metals and Industries
Operating Profit ($m)
2007 2008
2,935
1,432
Kumba
Iron Ore
Samancor
Manganese
Other
Operating Profit ($m)
11. 11
Near-term market weakness
• Strong demand across core commodities in H1 08 has softened
• Since mid-2008, markets characterised by deteriorating demand,
increasing stocks and rapidly declining prices
• Demand for commodities in 2009 is likely to remain weak
900
1100
1300
1500
1700
1900
2100
2300
H1 08 H2 08
$/oz
Platinum price
1.00
1.50
2.00
2.50
3.00
3.50
4.00
Copper price
H1 08 H2 08$/oz
$1,526/oz
Jan
$2,069/oz
Jul
$922/oz
Dec
$3.01/lb
Jan
$3.94/lb
Jul
$1.32/lb
Dec
12. 12
Addressing near-term challenges
• Actions taken to deal with rapidly changing price environment and
increased level of gearing
• Ensuring cash preservation and maximising value for shareholders
• Optimisation programmes continue to drive cost and efficiency
improvements
• Long term growth options preserved: new projects well timed to enter
production from 2011
13. 13
(I) Conserving cash through capex reduction
• Completed a wide-ranging review of capital expenditure following the
unprecedented decline in commodity prices
• 2009 capital expenditure plans reduced more than 50% to $4.5bn,
including $1.3bn stay-in-business capex (74% of depreciation)
• Reducing pressure on balance sheet and maintaining flexibility for
future growth when commodity outlook improves
Actions taken
4.5TOTAL GROUP
1.3
Group stay-in-
business
Zondagsfontein Q2 2009—0.4Coal
+12 months to Q2 2012Minas-Rio Phase 10.9Ferrous Metals
+8 months to Q4 2011
+12 months to Q1 2011
Los Bronces
Barro Alto1.4Base Metals
2011-2017
Amandelbult No.4 Shaft
Twickenham
Styldrift0.6Platinum
New project timeframe(1)
Projects affected
Targeted 2009
project capex
($bn)Business Unit
(1)First production date
14. 14
(II) Production cuts
• Reduced platinum output: target of 2.4 million ounces for FY09
• Plans to grow metallurgical coal production by 10% for FY09 halted;
production to be marginally below FY08
• FY09 thermal coal production to decrease by 2 mt year-on-year
• Significantly reduced diamond production
• Production levels will be monitored against economic developments
and further cuts will be made if necessary; creating maximum
flexibility for the future
Actions taken
15. 15
(III) Reducing our cost base
• Group cost savings: $348 million achieved in 2008, including $217
million from Procurement
• Headcount reductions: expected 19,000 reduction in 2009, in line with
growth and development plans
• Aggressive supply chain management to capture full benefits from
recent reduction in input costs
Actions taken
16. 16
(IV) New Asset Optimisation target of $1 billion
• Asset Optimisation and Procurement to deliver total benefits of
$2 billion over three years
• Significant progress made during year:
– Roll out of AOS structures now complete across all business units
– Appointed AOS managers in each division
– Global AOS information management platform being developed to aide
knowledge and best practice sharing
• Emerging common themes across business units:
– Mine planning and execution
– Capital projects management
– Asset management
– Equipment performance
– Metals recovery quality and market link
Actions taken
17. 17
Favourable cost positions across the group
• Majority of production in lower half of cost curve:
– 66% of our copper production is in the lower half of the industry C1 cost curve,
improving to c. 80% post completion of Los Bronces expansion
– Iron Ore production at Sishen in 1st quartile of cost curve
– 90% of thermal coal production in 1st quartile of cost curve; 95% of Hard Coking
Coal production in 1st half of cost curve
• Cost reductions at Anglo Platinum through:
– Productivity improvements
– Restructuring of large mines into smaller units
– Reduction of contractor headcount
– Supply chain benefits
• Continued investment in and development of assets in lower half of
cost curve in attractive markets
• Actions designed to ensure we create long term value for our
shareholders
18. 18
Recap of key messages
• Record core operating profit
• Major safety improvements
• $1 billion three-year Asset Optimisation target set
• Decisive actions taken to address market challenges
28. 28
Overview of committed financing
Summary of the Group’s bonds and committed bank facilities
2012$0.9bn$2.5bnCore facility2
2011$4.5bn$4.5bnAcquisition facility
2009$1.1bn$2.9bnBridge loan facility
20184$0.0bn$0.6bnBNDES3
$13.4bn$19.0bnTotal bonds & committed
facilities
2009-2018$2.5bn$3.5bnOther committed facilities
$10.3bn$15.9bnTotal committed facilities
2009-2012$0.3bn$0.3bnOther Bonds
$3.1bn$3.1bnTotal Bonds1
2010$0.4bn$0.4bnGBP 300m Bond
2015$1.6bn$1.6bnEUR 1,000m Bond
2018$0.8bn$0.8bnGBP 400m Bond
$1.9bn
Facility
amount
$1.3bn
Utilisation at
31Dec 08
2009-2013AASA Bank Facilities2
AA plc bank facilities
MaturityDescription
1Including the impact of interest rate and currency swaps
2Deductions to provide back-up for outstanding Commercial Paper of $1.1bn
3Dedicated Barro Alto financing
4Amortising profile
Refinancing in 2009/2010
•Anglo American’s only significant maturing
debt facility in 2009 is a $3 billion revolving
bank facility, of which $1.1 billion was drawn
at 31/12/08. In addition, the GBP 300m Bond
matures in December 2010
Committed bank facilities:
•$0.5 billion (due April 2009)
•$1.5 billion (due March 2010)
•$2.3 billion (due 2012 and beyond)
Agreement to provide shareholder
loan of $500m (Anglo share $225m)
Undrawn committed facilities and cash
•At 31 December, the Group had over $7 billion
undrawn committed facilities and cash, after
making deductions to provide back-up for
outstanding Commercial Paper
•In addition, the Group has a $1 billion
dedicated, committed financing facility for Minas-
Rio, subject to certain disbursement conditions
30. 30
Market outlook
• Markets are expected to remain weak and uncertain in the short term
• However, medium-to-longer term market fundamentals remain attractive
• We continue to invest in profitable growth with a bias towards copper,
export bulks and platinum
31. 31
Future production growth is well-timed
Copper
2009 2010 2011 2012 2013
Note: Selected approved projects
*Production represents average over first ten years of the project
**Replacement production
Los Bronces
+173ktpa*
Barro Alto
36ktpa
Minas Rio
26.5Mtpa
Sishen South
9Mtpa
Amandelbult
No. 4 Shaft**
271kozpa
Seaborne
Iron Ore
Twickenham
180kozpa
Nickel
Platinum Full production
2016-2019
32. 32
Major growth projects in:
• Copper
• Iron ore
• Coal
Anglo American growth profile
2008 2012
500
900
Ktpa
650
2008 2012
50
75
Mtpa
40
90
100
Mtpa
115
Copper production growth
Iron ore production growth
Coal production growth
2010
2010
2008 20122010
Well timed to enter
production in 2011
33. 33
Outlook
• Weak current market conditions, but medium-to-longer term fundamentals
remain attractive
• Anglo well placed to create long term shareholder value
37. 37
Underlying earnings sensitivities
US$m
10% change in platinum price + 144
10% change in palladium price + 22
10% change in coal price + 349
10% change in copper price + 275
10% change in nickel price + 50
10% change in zinc price + 45
10% change in iron ore price + 88
10% change in SA rand / US$ + 279
10% change in AUD/US$ + 110
10% change in GBP/US$ + 14
10% change in Chilean Peso/US$ + 45
Stated after tax at marginal rate
Sensitivities are the average of the positive and negative and reflect the impact of a 10% change in average prices received and exchange rates during 2008
38. 38
Analysis of underlying earnings
$m 2008 2007
Base Metals 1,369 3,100
Platinum 1,313 1,299
Ferrous Metal & Industries 1,396 605
Coal 1,581 490
Diamonds 256 239
Industrial Minerals 173 384
Exploration (200) (145)
Corporate Activities & Unallocated Costs (651) (495)
Paper & Packaging - 189
Gold - 95
Underlying Earnings 5,237 5,761
Underlying earnings is profit attributable to equity holders before special items and remeasurements and
including share of underlying earnings of associates
39. 39
Analysis of operating profit
$m 2008 2007
Base Metals 2,505 4,338
Platinum 2,226 2,697
Ferrous Metal & Industries - core 2,843 1,210
Coal 2,240 614
Diamonds 508 484
Exploration (212) (157)
Corporate Activities & Unallocated Costs (345) (292)
Core 9,765 8,894
Ferrous Metal & Industries – non core 92 222
Industrial Minerals 228 474
Paper & Packaging - 324
Gold - 202
Operating Profit 10,085 10,116
Operating profit before special items and remeasurements and including share of operating profit from
associates
40. 40
Regional analysis
Operating Profit
$m 2008 2007
South Africa 5,107 4,291
Rest of Africa 467 693
Europe (183) 513
Americas 2,956 3,942
Australasia & Asia 1,738 151
Total 10,085 9,590
Operating profit prepared on a continuing business basis (excludes Paper & Packaging and AngloGold Ashanti in 2007) before special items and remeasurements
and including share of operating profit from associates
41. 41
Capital expenditure
$m 2008 2007
Base Metals 1,494 610
Platinum 1,563 1,479
Ferrous Metal & Industries 831 470
Coal 933 1,052
Industrial Minerals 301 274
Paper & Packaging - 186
Other 24 46
Total 5,146 4,117
Capital Expenditure relates to cash expenditure on tangible assets
42. 42
Operating profit variance: Exchange
Variances are stated for core operations excluding associates: Base Metals, Platinum, Coal, Diamonds, Ferrous Metals (Kumba Iron Ore, Scaw Metals, Anglo
Ferrous Brazil)
$ million
1,215
29204
36
264
Platinum Coal Base Ferrous Corporate Total
682
