Skip to main content JULY 2015 INVESTOR PRESENTATION – Anglo American Plc | Shale Experts
Loading...
Pm

JULY 2015 INVESTOR PRESENTATION – Anglo American Plc

Anglo American Plc · Jul 24, 2015 · 53 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 1
    INTERIM RESULTS SIX MONTHS ENDED 30 JUNE 2015 24 July 2015 Kolomela mine Kumba Iron Ore
  2. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 2
    FINANCIAL HIGHLIGHTS A solid set of results despite significant commodity headwinds prices down...offset by improved Underlying EBIT 1.9bn -36% production and costs. EPS 0.70/share -30% Capital expenditure 2.1bn -22% actions…
  3. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 3
    FOCUS ON DELIVERY We are delivering on our Driving Value initiatives Delivered 2013, 2014 & H1 2015 MAJOR PROJECTSon track and below budget Minas-Rio commissioning on track. 1.7bn Grosvenor ahead of schedule. Barro Alto furnaces…
  4. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 4
    EBITDA MARGIN PRESERVATION Commodity basket price has fallen 25% EBITDA margin (%) versus indexed basket price 120 60% EBITDA Margin (%) Indexed Performance 100 45% 80 75 30% 60 29% 15% 27% 25% 25% 40 0%…
  5. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 5
    EBITDA MARGIN PRESERVATION Stability in EBITDA margins reflects volume growth EBITDA margin (%) versus indexed basket price and unit cost performance 120 60% 109 EBITDA Margin (%) Indexed Performance 100 100 45% 78 80…
  6. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 6
    FOCUS ON THE CONTROLLABLES We are accelerating our turnaround work with focus on costs NEXT 18 MONTHSimprovements accelerated Target H2 2015 & 2016 800m operating cost reduction. 1.5bn 300m support cost reduction. 400m production…
  7. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 7
    SUPPORT COST REDUCTION OF 300M BY END OF 2016 Right-sizing the business for the current operating environment Employee and contractor numbers -7% = 500m saving 162,000 (300m by end 2016) Support -31% 151,000 Operations 13,000…
  8. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 8
    FINANCIALS Ren Mdori
  9. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 9
    2015 RESULTS Price declines have driven revenues lower Key financials Price variance 1 Jan to 30 Jun 2015 bn H1 2015 H1 2014 Change Underlying EBITDA 3.3 4.3 -24% Underlying EBIT 1.9 2.9 -36% -5%(4) Effective tax rate 28.0%…
  10. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 10
    H1 2015 EBIT VARIANCE Improved operational performance H1 2015 vs. H1 2014 (bn) Bulks (1.3) (0.3) 0.6 (0.1) (0.3) Base & 0.1 2.9 0.7 Precious (0.6) 1.9 1.5 11% H1 2014 Price(1) Currency Inflation(2) Sales Cash De…
  11. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 11
    GROUP CAPITAL EXPENDITURE Continued focus on reduction in committed spend and optimisation of SIB capex Capital expenditure (bn) Guidance (bn)(1) 2015 2016 Capex excludes operating cash profits and losses capitalised Capital…
  12. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 12
    NET DEBT PROFILE Despite lower prices Net debt (bn) Net debt profile (bn) Opening net debt 1 January 2015 12.9 -0.5 Cash flow from operations (2.8) 13.5 13.0 - 13.5 10.0 - 12.0 Capital expenditure(1) 2.1 Cash tax paid 0.3…
  13. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 13
    IMPAIRMENTS Impairments to Minas-Rio and Coal assets bn Impairment(1) Iron Ore (/t CFR China 62% Fe)(2) Minas-Rio 2.5 100 Coal Australia 0.6 -36% Peace River Coal 0.2 Total 3.3 80 The first six months of 2015 have seen…
  14. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 14
    OPERATIONAL PERFORMANCE Mark Cutifani
  15. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 15
    OPERATING PERFORMANCE SAFETY We continue to target zero harm in safety and health Loss of life (by business) We deeply regret the loss of five colleagues to 17 incidents in Australia, Brazil and South Africa. 15 13 6 Focus on…
  16. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 16
    OPERATING PERFORMANCE ENVIRONMENT & SOCIAL Major reduction in emissions and spills reflects focus Environmental incidents (levels 3 to 5) (1) Leadership standards have set new expectations around how we run the business. 30 27 Focus…
  17. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 17
    OPERATING PERFORMANCE PRODUCTION Strong recovery in Platinum, solid Thermal Coal and ramp-up at Minas-Rio H1 2015 versus H1 2014 (% change) +55% +11% +8% +2% -3% -6% -10% -34% Platinum Iron Ore Coal Export De Beers…
  18. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 18
    OPERATING PERFORMANCE UNIT COSTS Productivity improvements and cost reductions across the business Local currency unit cost decreases with FX helping lower US unit costs. (Local currency) (US) +8% +9% +4% -1% -3% -4% -5%…
  19. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 19
    KUMBA Lower prices and higher waste stripping Realised price Unit cost Underlying Production Capex ROCE Sishen waste Export sales (FOB) (FOB) EBIT H1 2015 22.6 Mt 61/t 33/t 513m 274m 32% 108 Mt 23.2 Mt vs. -1% -41% -4% -57% -10%…
  20. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 20
    KUMBA DELIVERED CASH COST 22% LOWER Kumba reconfigured to operate in a 45/tonne environment Operations reconfigured to achieve Kumba delivered full cash cost including SIB (/t) lower cost of production: Material revision to Sishen…
  21. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 21
    MINAS-RIO Solid ramp-up performance to date Realised price Unit cost Underlying Production Capex ROCE Sales Ramp-up (FOB) (FOB) EBIT H1 15 3.0Mt 50/wmt 97/wmt (11)m 555m (1)% 2.6Mt 33% complete vs. H1 14 nm nm nm -22% -45% (1)pp nm…
  22. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 22
    COAL Despite lower metallurgical and thermal coal pricing Export prod. FOB price Unit cost Underlying SA UG OEE(2) Grasstree Capex ROCE met / thermal met / thermal met / thermal(1) EBIT benchmark LW cutting rate H1 2015 10.2Mt / 17.3Mt…
  23. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 23
    COAL UNIT COST REDUCTION Productivity led unit cost reductions in Australia Coal Australia: FOB unit cost (ex royalties) A/tonne SA: export mines FOR unit cost (ex royalties) R/tonne 95 87 -13% -7% 85 357 (5) (13) (12) 332 (6)…
  24. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 24
    COPPER Lower prices and water restrictions impact H1 earnings Underlying Production Realised price C1 unit cost Capex ROCE Material mined Sales EBIT H1 15 356 kt 253c/lb 166c/lb 174m 309m 5% 199 Mt 344 kt vs. H1 14 -10% -18% +4% -77%…
  25. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 25
    NICKEL Furnace rebuilds ahead of schedulewith first furnace now operating at design Underlying Barro Alto Production (1) Realised price C1 unit cost (2) Capex ROCE Sales (1) EBIT re-build (3) H1 15 13.0kt 568c/lb 494c/lb 0m (17)m 0%…
  26. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 26
    PLATINUM Operational recovery, post prolonged strike Equ. ref. Realised Underlying Unit cost Capex ROCE Pt sales Headcount production Basket price EBIT H1 15 1,108 koz 2,157/oz 1,627/oz 272m 179m 7% 1,159 k/oz 47,548 vs. H1 14 +55%…
  27. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 27
    PLATINUM PERFORMANCE IMPROVEMENT Cash operating margin reaches 54% at Mogalakwena, with minimal capital invested Mogalakwena cash operating margin (%) (1) Rustenburg - headcount -31% 1,532 24,000 1,485 1,386 16,500 1,160…
  28. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 28
    DE BEERS Solid operating and cost performance Underlying (3) Average index Production(1) Realised price Unit cost(2) Capex ROCE Sales (Cons.) EBIT price H1 15 15.6Mct 206/ct 103/ct 576m 363m 12% 13.3Mct 139 vs. H1 14 -3% +7% -10% -25%…
  29. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 29
    DIAMOND SECTOR CHALLENGES Several issues have impacted the diamond pipeline Market observations Polished inventories: higher than normal at the start of the year, weaker Q4 2014 and grading lab suffered a major backlog. Consumer…
  30. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 30
    A SLIMMED DOWN HIGH QUALITY DIVERSIFIED PORTFOLIO Focus on larger, higher margin operations Number of operations(1) Total labour force (000)(2) Production (Cu eq. tonnes 000)(1)(2)(3) -27% +3% -35% 55 4,629 151 4,495 40…
  31. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 31
    PORTFOLIO QUALITYCOMPETITIVE POSITIONS Reflecting current project completions and portfolio restructure Aggregate Business Unit cost curve position - 2014 De Beers Jwaneng With After With Before Copper Quellavecodisposals…
  32. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 32
    HIGHER MARGIN BUSINESS POST CHANGE Like-for-like EBITDA margins increase to 29% post divestments EBITDA margin (%) 35% Further 6% EBITDA improvement 27% 25% 29% Post divestments 2014 H1 2015 H1 2015 (like-for-like…
  33. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 33
    ACHIEVEMENTS IN H1 2015 We have focused on driving operations and reducing costs PRODUCTION Up 8%.....despite mine closures. OPERATING UNIT COSTS Down 5% in local currencies14% in USD. CAPITAL SPEND Down 22%...driven by…
  34. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 34
    CREATING THE ANGLO AMERICAN OF THE FUTURE We are accelerating our restructuring initiatives DELIVERY Delivered 1.7bn EBIT improvement up to the end of June 2015. Production growth in H115 of 8% (Cu eq.) and USD unit costs reduced by…
  35. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 35
    APPENDIX
  36. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 36
    PRODUCTION OUTLOOK(1) 2013 2014 2015 2016 2017 Copper (2) 775Kt 748kt 720-750kt 720-750kt 710-740kt 25-30kt Nickel 34kt 37kt 40-45kt 42-45kt Previously 20-25 Mt 44Mt 47Mt 49Mt Iron ore (Kumba)(3) 42Mt 48Mt Previously 47-48Mt…
  37. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 37
    PRICE VARIANCE H1 2015 vs. H1 2014 EBIT variance (m) Indexed commodity prices (1 Jan 2015 = 1) 1.1 Variance 1 Jan to 30 Jun 2015 Other 122 Platinum (365) (250) 1.0 precious Base & Diamonds (5)% (1) (7)% Copper…
  38. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 38
    PRICE VARIANCE BULKS Iron ore sales(1) (Mt) Metallurgical coal sales(2) (Mt) Export Met Coal Sales Export Coal Sales (Mt) (Mt) Realised Realised 104/t 61/t 117/t 100/t price(3) price(4) 9.2 8.8 11.1 11.6 28% 34% 23% 28% 61%…
  39. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 39
    EXCHANGE VARIANCE H1 2015 vs. H1 2014 (m) Rand weakened 10% compared to 2014 H1 2014 average H2 2014 average H1 2015 average 702 10.70 11.00 11.92 13.0 Other(1) 70 ZAR / USD 12.0 CLP 72 11.0 10.0 2014 average 10.85 H1…
  40. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 40
    SALES VOLUME VARIANCE H1 2015 vs. H1 2014 (m) Sales volume performance (% change vs. H1 2014) 16% 11% KIO 193 +8%(4) Coal RSA 53 Increase in Other copper equivalent production Copper (134) (5)% (11)% De Beers…
  41. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 41
    RECONCILIATION OF TOTAL CAPITAL EMPLOYED TO AVERAGE ATTRIBUTABLE CAPITAL EMPLOYED bn 30 Jun 2015 31 Dec 2014 30 June 2014 31 Dec 2013 Net assets 27.7 32.2 38.4 37.4 Less: financial asset investments (1.3) (1.3) (1.5) (1.5) Add: net debt…
  42. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 42
    ATTRIBUTABLE ROCE H1 2015 H1 2014 Business Unit Average Average Attributable Attributable Attributable Attributable attributable capital attributable capital EBIT(1) (bn) ROCE(2) (%) EBIT(1) (bn) ROCE(2) (%) employed (bn) employed…
  43. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 43
    EARNINGS SENSITIVITIES(1) Sensitivities analysis Impact of movement Commodity / Currency Movement H1 2015 average on EBIT (m) Iron Ore (62% CFR China) +/- 10/t 60 230 Hard Coking Coal (FOB Australia) +/- 10/t 113 66 Pulverised Coal…
  44. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 44
    AVERAGE MARKET PRICES H1 2015 H1 2014 Change Iron ore (62% Fe CFR)(1) - /t 60 111 (46)% Thermal coal (FOB South Africa) - /t 62 77 (19)% Thermal coal (FOB Australia) - /t 63 76 (13)% HCC (FOB Australia average quarterly…
  45. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 45
    PRICE AND FX ASSUMPTIONS FOR ROCE TARGET Commodity and currency 30 June 2013 30 June 2015(1) Iron Ore 62% Fe CFR(2) 116/t 60/t Thermal FOB South Africa 74/t 59/t Thermal FOB Australia 78/t 63/t HCC FOB Australia 145/t(3) 110/t…
  46. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 46
    DRIVING VALUE 1.9BN RUN RATE SAVINGS ACHIEVED Attributable EBIT bn 30 June 2013 prices and FX 1.5 7.3bn 1.6 1.0 5.9bn 0.9 1.0 3.3bn 1.9bn of attributable EBIT to be delivered in 2015 2012 Projects Asset Value Disposals and…
  47. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 47
    CAPITAL EXPENDITURE(1) m H1 2015 H1 2014 Change Kumba Iron Ore 274 305 (10)% Iron Ore Brazil 555 1,007 (45)% Coal 416 436 (5)% Copper 309 312 (1)% Nickel (17) (25) 32% Niobium and Phosphates 25 107 (77)% Platinum 179 244 (27)% De…
  48. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 48
    DEBT MATURITY PROFILE AT 30 JUNE 2015 Debt repayments (bn) at 30 June 2015 4.3 3.6 2.9 1.9 2.0 1.9 1.7 1.8 0.1 H2 2015 2016 2017 2018 2019 2020 2021 2022 2023+ BNDES Subsidiary Euro Bonds US Bonds Other Bonds De…
  49. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 49
    DE BEERS: KEY FINANCIAL METRICS H1 H1 H2 FY USbn 2015 2014 2014 2014 Revenue(1) 3.0 3.8 3.2 7.0 Rough diamond sales 2.7 3.5 3.0 6.5 Element Six and other 0.3 0.3 0.2 0.5 Production costs (0.6) (0.7) (0.6) (1.3) Purchases of diamonds…
  50. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 50
    DE BEERS: SUPPLEMENTARY DATA BY KEY MINE (1 OF 2) H1 H1 H2 FY 2015 2014 2014 2014 Jwaneng Waste mined (Mt) 55.1 58.5 56.7 115.2 (50%/19.2% economic interest) Ore mined (Mt) 4.2 5.0 5.6 10.6 Material treated (Mt) 4.3 3.9 4.6 8.5…
  51. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 51
    DE BEERS: SUPPLEMENTARY DATA BY KEY MINE (2 OF 2) H1 H1 H2 FY 2015 2014 2014 2014 Venetia Waste mined (Mt) 19.1 21.7 19.9 41.6 Ore mined (Mt) 2.0 2.7 3.2 5.9 DBCM (74%) Material treated (Mt) 2.9 2.9 2.6 5.5 Grade (cpht)(2) 48…
  52. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 52
    ROCE AND ATTRIBUTABLE ROCE DEFINITION Return on capital employed (ROCE) ROCE is a ratio that measures the efficiency and profitability of a companys capital investments. It displays how effectively assets are generating profit for the…
  53. JULY 2015 INVESTOR PRESENTATION – Anglo American Plc – slide 53
    INVESTOR RELATIONS London Paul Galloway Tel: +44 20 7968 8718 Ed Kite Tel: +44 20 7968 2178 Sarah McNally Tel: +44 20 7968 8747

From the store

Browse maps, data & reports in the Shale Experts store