AngloAmerican Results Presentation Deck slide image

AngloAmerican Results Presentation Deck

Footnotes 1. Recordable incidents. Data relates to subsidiaries and joint operations over which Anglo American has management control. Since 2018 data for fatalities, TRCFR and environmental metrics excludes results from De Beers' joint operations in Namibia and Botswana. Total Recordable Cases Frequency Rate per million hours. New cases of occupational disease. Environmental incidents are classified in terms of a 5-level severity rating. Incidents with medium, high and major impacts, as defined by standard internal definitions, are reported as level 3-5 incidents. In 2020, we launched a new integrated social performance management system (Social Way 3.0) which has raised performance expectations and has resulted in continued improvement i our social performance. Sites are expected to have implemented the Social Way 3.0 by the end of 2022. While sites are assessed annually against all requirements applicable to their context, for consistency during the transition period, the metric reflects performance against the Social Way foundational requirements. Copper equivalent production is calculated using long-term consensus parameters. 2021 copper equivalent production is normalised to reflect the demerger of the South Africa thermal coal operations, the sale of our interest in Cerrejón and the closure of the manganese alloy operations. Growth was calculated in Q4 2021 with reference to a 2021F baseline. Future production levels are indicative and subject to final approval. Metrics on an underlying basis - before special items and remeasurements adjusted to include the Group's attributable share of associates' and joint ventures' results. Margin represents the Group's underlying EBITDA margin for the mining business. It excludes the impact of non-mining activities (eg PGMs purchases of concentrate, sale of non-equity product by De Beers, 3rd_ party trading activities performed by Marketing) & at Group level reflects Debswana accounting treatment as a 50/50 joint operation. Mining margin for De Beers on a stand alone basis is based on proportionate consolidation of mining businesses in De Beers only. Copper equivalent unit costs are shown on nominal terms and calculated as the total USD cost base divided by copper equivalent production. 2021 copper equivalent unit cost is normalised to reflect the demerger of the South Africa thermal coal operations, the sale of our interest in Cerrejón and the closure of the manganese alloy operations. Attributable ROCE is defined as attributable underlying EBIT divided by average attributable capital employed. It excludes the portion of the return and capital employed attributable to non-controlling interests in operations where the Group has control but does not hold 100% of the equity. Base metals consists of Copper (Chile and Peru) and Nickel. Bulks excludes thermal coal businesses. 234 3. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Approval received from the Resources Safety and Health Queensland in February 2022. Based on 2021 forecast as of Q4 2021. Source: Wood Mackenzie; AAP; De Beers; CRU; McKinsey MineSpans. Excludes non-AA mined commodities (e.g., zinc, bauxite). Excludes non-mining activities (e.g., petroleum, alumina/aluminium processing, marketing). Incorporates 2014 data for diamonds. Greater improvements than peers for our portfolio of commodities. Of the $3.6bn base dividend in respect of the financial year 2021, $2.1bn was paid during the year as an interim ordinary dividend and the remainder will be paid in H1 2022. $0.8bn of the $1.0bn 2021 share buyback programme had been completed at 31 December 2021. The cumulative amount of $12.3bn since 2017 includes the full 2021 base dividend of $3.6bn and all additional special dividends and share buybacks declared as at February 2022. 16. Sustaining attributable free cash flow is defined as net cash inflows from operating activities net of 15. Anglo American 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. capital expenditure (sustaining/lifex only), net interest paid, dividends paid to minorities and capital repayment of lease obligations. Group EBITDA also includes thermal coal, exploration expenditure and unallocated corporate costs. Price variance calculated as increase/(decrease) in price multiplied by current period sales volume. Inflation variance calculated using CPI on prior period cash operating costs that have been impacted directly by inflation. Cost plus volume. Volume: increase/(decrease) in sales volumes multiplied by prior period EBITDA margin (ie flat unit costs, before CPI). Cost: change in total USD costs, again, before CPI inflation. For assets with no prior period comparative (eg in ramp up) all EBITDA is included in the volume variance. Net impact of production and sales disruption and recovery due to Covid-19 as well as PGMs ACP recovery - both excluded and shown separately. Other includes the impact of items such as deferred stripping and stock movements. Cash expenditure on property, plant and equipment including related derivatives, net of proceeds from disposal of property, plant and equipment and includes direct funding for capital expenditure from non- controlling interests. Shown excluding capitalised operating cash flows. Consequently, for Quellaveco, reflects attributable share of capex, see appendix. Opening Net Debt and prior year comparatives have been restated by $0.1bn following an amendment to the definition of Net Debt to exclude variable vessel leases. Taxes and royalties include all taxes and royalties both borne and collected by the Group. This includes corporate income taxes, withholding taxes, mining taxes royalties, employee taxes and social security contributions and other taxes, levies and duties directly incurred by the Group, as well as taxes incurred by other parties (eg customers and employees) but collected and paid by the Group on their behalf. Figures disclosed are based on cash remitted, net of entities consolidated for accounting purposes, plus a proportionate share, based on the percentage shareholding, of joint operations. Taxes borne and collected by associates and joint ventures are not included. Numbers are rounded and not all countries are included on the map where not material (eg Canada & Peru) and hence, rounding differences occur to Group total. For 2021, Peru amounted to $22 million. Cumulative 2021 cost & volume improvement in EBITDA is impacted by above-CPI cost inflation of ~$0.3bn and is included within the total target. Capital employed on an attributable basis. 2030 target based on an absolute reduction in GHG emissions across the business vs 2016 baseline adjusted for structural changes. 2020 Energy and GHG (Scope 1 & 2) savings are calculated relative to projected 'business as usual' consumption levels. For more information on carbon neutral targets see Sustainable Performance presentation from 29 October 2021. Targets and guidance as announced on 7 May 2020. For more information on carbon neutral targets see Sustainable Performance presentation from 29 October 2021. 100% basis. 300kt average annual production over first ten years. 400kt production brought forward is gross of a 200kt offset from Covid. Based on ramp-up year and production volumes of 100-150kt. 2022 is a ramp-up year and therefore unit costs range significantly and are highly dependent on production start date, and subject to further Covid-19 impacts. Growth options that are not yet approved. The margin reflects the targeted potential margin for our growth and lifex projects. Long-term target for 'Sustaining attributable free cash flow'/ average attributable capital employed. 34
View entire presentation