Transcript No Slide Title

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
Why Anglo American?
Anglo American plc
Anglo Platinum
74.1%
AngloGold
47%
De Beers
45%
Coal
100%
Base Metals
100%
Industrial
Minerals
100%
Paper and
Packaging
100%
Ferrous Metals
and Industries
100%
 High quality assets
 Financial strength
 Strong cashflow returns
 Investing for growth
2
Diversified Profile
Geographic headline
earnings mix - 2003
Rest of
World
22%
Europe
26%
Headline earnings by
business unit - 2003
Industrial
Minerals
16%
Paper and
Packaging
22%
Americas
18%
South
Africa
34%
Ferrous &
Industries
6%
Coal
14%
Platinum
12%
Diamonds
23%
Base
Metals
12%
Gold
10%
3
Shareholder value
 Significant increase in shareholder value since 1999¹
225
200
175
150
125
100
75
50
May Jul
99 99
Sep Nov Jan Mar May Jul
99 99 00 00 00 00
Sep Nov Jan Mar May Jul
00 00 01 01 01 01
Sep Nov Jan Mar May Jul
01 01 02 02 02 02
AAL TSR Rebased
Sep Nov Jan Mar May Jul
02 02 03 03 03 03
Sep Nov Jan Mar
03 03 04 04
FTSE100 TSR Rebased
¹Total Shareholder Return (TSR) with dividends reinvested
4
Strategy
Focused strategy based on:
 Growth through projects
 Growth through acquisitions
 Value from cost cutting and
efficiencies
5
Production Growth
m ozs
2,2
2,0
1,6
1,4
1,2
Platinum +17%
1,0
1999
2000
2001
2002
2003
m tonnes
105
87
85
62
45
Coal +40%
25
1999
2000
2001
2002
m carats
2003
43.9
45
Through
organic
growth and
acquisition
AA plc has
shown
significant
production
growth in
most of its
products
600
424
400
200
Copper +67%
0
1999
2000
2001
2002
’000 tonnes
40
31.45
2003
47
50
30
30
20
10
Nickel +57%
0
1999
2000
2001
2002
2003
’000 tonnes
400
360
350
40
35
709
800
2.02
1,8
65
’000 tonnes
2.36
2,4
300
250
200
30
150
121
100
25
Diamonds +40%
20
1999
2000
2001
2002
2003
Zinc +197%
50
0
1999
2000
2001
2002
2003
6
Production Growth
m tonnes
000 tonnes
80
3000
67.2
70
2,381
2500
60
26.7
50
40
30
20
Aggregates +152%
10
0
1999
2000
2001
2002
2003
m tonnes
1,5
1.04
1,0
0.59
0,5
Phosphates +76%
0
1999
2000
2001
2002
000 tonnes
2003
1,490
1600
1400
Through
organic
growth and
acquisition
AA plc has
shown
significant
production
growth in
most of its
products
2000
923
1500
1000
500
Packaging Papers +158%
0
1999
2000
2001
2002
2003
Units m
2,723
3000
2500
2000
1500
611
1000
Industrial sacks +346%
500
0
1999
2000
2001
2002
m m²
2003
1,683
1800
1500
1200
1000
800
600
400
1200
560
900
600
UCWF +166%
200
0
1999
700
2000
2001
2002
2003
300
0
Corrugated Packaging +140%
1999
2000
2001
2002
2003
7
Growth through Projects
A balanced $6bn approved Project Portfolio
Kleinkopje
$56m
Buxton
$173m
Skorpion
$454m
Collahuasi
$288m
Richards Bay
$221m
HBMS 777
$276m
BRPM
$317m
Isibonelo
$65m
Moab Khot.
$690m
PMR Expan.
Ruzomberok
$99m
$233m
ACP Project
$250m
2004
Merebank
$150m
Dartbrook
$55m
W.L. Tailings
$186m
Ticor
$191m
Finsch
$130m
Black Mtn
$110m
TauTona
$169m
RPM Ph 1
$210m
Cerrejón
$17m
RPM Ph 2
$444m
Base Metals
Diamonds
Paper & Packaging
Industrial Minerals
Platinum
Coal
Gold
Ferrous Metals
Grasstree
$106m
Twickenham
$343m
Mponeng
$191m
2005
Key:
2006
2007
2008
Selected major authorised projects. 100% of subsidiaries and AA plc’s share of JV’s and associates. Full production dates.
8
An extensive unapproved
Project Pipeline
NAME
PRODUCT
LOCATION
ESTIMATED COST ($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
9
Exposure to China
Operations & Projects
Trading: $1.1bn
 Tarmac quarry
Other
$170m
 Boart mining equipment
manufacturing
 Paper and packaging
plants
 Coal and platinum
exploration
Platinum
$420m
Gold
$120m
Iron Ore
$130m
Diamonds
$250m
10
Key acquisitions:
Delivering value
Mondi Europe
Tarmac
Acquired: Mar 2000
Price: $1.1bn
EBITDA/Total Cap: 16%
Acquired: since 1999
Price: $1.7bn
EBITDA/Total Cap: 23%
Syktyvkar
Coal Colombia &
CDG
Acquired: Mar 2002
Price: $0.3bn
EBITDA/Total Cap: 23%
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%
11
Delivering Value from
Cost Savings
2003
Targeted
Achieved
2002 $250m
$279m

2003 $200m
$335m

2004 $250m
12
Key Financials
 Group Turnover: $24.9bn
 EBITDA: $4.79bn
 Headline Earnings: $1,694m
 Gearing: 26.6%
Single A credit rating
13
Currency & commodity impact
900
850
10.00
9.50
9.00
8.50
Average ZAR/US$: 7.55
8.00
7.50
7.00
6.50
6.00
ZAR/US$ 28% stronger
Negative
impact of
weaker US$:
$578m
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2.00
1.90
1.80
1.70
1.60
1.50
1.40
1.30
1.20
1.10
1.00
Average A$/US$: 1.53
A$/US$ 17% stronger
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
800
750
Average price: 692 $/oz
700
650
600
Platinum +28%
550
500
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
440
..only partially
compensated
by positive
impact from
stronger
prices:
$400m
420
400
Average price: 363 $/oz
380
360
340
Gold +17%
320
300
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
110
100
90
Average price: 81 c/lb
80
70
Copper +14%
60
50
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Percentages shown represent the change from average 2002 to average 2003
14
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
15
A Radical Restructuring
2001
2004
COLLAHUASI (44%)
COLLAHUASI (44%)
HBMS (100%)
HBMS (100%)
MANTOS BLANCOS (99.9%)
MANTOS BLANCOS (99.9%)
MANTOVERDE (99.9%)
CODEMIN (90%)
CORE
MANTOVERDE (99.9%)
CODEMIN (90%)
BLACK MOUNTAIN (100%)
BLACK MOUNTAIN (100%)
PALABORA (29%)
PALABORA (29%)
NAMAKWA SANDS (100%)
NAMAKWA SANDS (100%)
LOMA DE NÍQUEL (91%)
LOMA DE NÍQUEL (91%)
BARRO ALTO (100%)
BARRO ALTO (100%)
LISHEEN (62%)
MINERA SUR ANDES (100%)
SKORPION (100%)
LISHEEN (100%)
KONKOLA (33%)
ANACONDA (23.7%)
BINDURA (52.9%)
SALOBO (50%)
SOLD
NKOMATI (25%)
BCL (23%)
TATI (43.4%)
Blue – Core and acquisitions
Red – Disposals
16
Copper Market Overview
Refined Copper Stocks * (left scale)
and LME Prices (right scale)
1500
150
1250
1000
110
750
90
500
70
'Nominal' cents per pound
thousand tonnes
130
250
* LME + Comex
0
jan 92
50
jan 93
jan 94
jan 95
jan 96
jan 97
jan 98
jan 99
jan 00
jan 01
jan 02
jan 03
jan 04
c
17
Competitive Position
100Cost (2004 c/lb)
C1
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%)
5. Mantoverde (100%)
3
60
5
50
2
1
40
30
20
10
Annual Copper Mine Production ('000 t, paid)
Grasberg
(Cu/Au)
0
0
200
400
600
800
1000
1200
18
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
19
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
20
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
21
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
22
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
23
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
24
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
25
Paper and Packaging
Sales growth vs. ROCE 1999-2003P*
- Average pre-tax return on capital employed (ROCE), % -
20
Mondi
15
Value
creation
Sappi
SCA
Cost of capital
8-12%
10
UPM
Stora Enso
5
Domtar
M-Real
J. Smurfit
Value
destruction
MeadWestvaco
Int’l Paper
Average growth rate 8.0%
0
-10
0
10
20
30
- Average sales growth in USD, %/a -
* 2003 figures from preliminary results
Source : Jaakko Pöyry
Size of the bubble is relative
to the sales in USD in 2003
26
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)
27
Outlook
 Macro outlook positive
 Geographic and commodity diversity will
underpin performance
 Strong EBITDA generation, good growth for
2004
28
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