2003 interim results

2003 Interim Results

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.

ANGLO AMERICANADDING VALUE TO

NATURAL RESOURCES

8 August 2003

2 2003 Interim Results

H1 ‘03

$0.61

Headline earnings up 2% at $856m despite stronger rand

Outstanding contribution from Diamonds, strong performances from European Paper and Packaging and Industrial Minerals offset lower Platinum, Gold and Coal

Interim dividend maintained at 15 US cents per share

Strong EBITDA of $2.4bn up 9%: EBITDA interest cover 14x

Cost savings & efficiency gains: $127m

Key Financials

H1 ‘02

$0.60

Headline EPS


6

7

8

9

10

11

12

13

Jan Feb Mar Apr May Jun6

7

8

9

10

11

12

13

Jan Feb Mar Apr May Jun

Rand/US$ Exchange Rate

R/$

Average8.03

Average10.99

SA Rand 27% stronger vs. US$

Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun

H1 2002 H1 2003

11.96

10.37

8.58

7.48


Europe30%

H1 2003H1 2002

SouthAfrica54%

Headline Earnings -

Rest ofWorld18%

Americas7%

Europe21%

SouthAfrica30%

Americas12%

Rest ofWorld28%

Geographic Diversity


H1 2003H1 2002

Platinum19%

Ferrous &Industries

6%

BaseMetals

4%

Gold12%

Diamonds20%Coal

17%

IndustrialMinerals

11%

Paper andPackaging

18%

Platinum13%

Ferrous &Industries

5%

BaseMetals

7%

Gold10%

Diamonds29%

Coal13%

IndustrialMinerals

13%

Paper andPackaging

21%

Headline Earnings - ProductDiversity


Europe30%

SouthAfrica36%

30 June 2003

Balanced Asset Mix -

Net attributable operating assets, including investment in associates & JVs

Americas20%

Rest ofWorld14%

Geographic Diversity


2003 2004 2005 2006 2007 2008Major authorised projects. Full project list included in appendix. 100% of subsidiaries and AA plc’s share of JV’s and associates. Full production dates.

Key:

Base Metals

Diamonds

Paper & Packaging

Industrial Minerals

Platinum

Coal

Gold

Cerrejón$50m Moab Khot.

$690m

Polokwane$190m

Modikwa$311m

2009

CC&V$203m

Collahuasi$288m

ACP Project$250m

Skorpion$454m

Finsch$126m

Buxton$173m

Internal Growth

A Well-balanced $6bn Project Portfolio

RPM Ph 2$444m

HBMS 777$276m

RPM Ph 1$210m

RPM Tailings$186m

Mponeng$191m

Goiás$147m

Capcoal$106m

BRPM$317m

TauTona$169m

PMR Expan.$99m

Kleinkopje$56m

Kriel$65m

Dartbrook$55m

Black Mtn$110m

Ruzomberok$233m

Richards Bay$221m


Safety performance continues to show encouraging improvements

LTIFR improves 22% from 2002 total

Fatal incidents levels unchanged from equivalent period last year – area for intensive focus

Good progress made in rolling out ART for HIV/AIDS infected employees - around 500 employees already receiving ART - with encouraging results

Social Responsibility

Review of FinancialsTony Lea



$m H1 ‘03 H1 ‘02Profit for the financial period 760 767

Exceptional items 7 (11)

Amortisation of goodwill 98 82

Related tax & minority interests (9) 2

Headline earnings for the period 856 840

Headline Earnings


Headline Earnings Variances

30 82

(231) (46)

159

(112)

127

(21)

840 856

28

0

200

400

600

800

1,000

1,200

H1 2002 Price Inflation Exchange Volum e Cashcost

Non-cashcost

Interest DBI Structural& Other

H1 2003

$m


Headline Variance: Exchange

Group Total: -$231m

(231)(9)

(25)

(19)(16)

(65)

(44)

(44)

14(23)

(300)

(250)

(200)

(150)

(100)

(50)

-Platinum Coal AngloGold

Paper &Packaging

Base M etals

Corporate&

ExplorationFerrousM etals Industries

IndustrialM inerals Total


Pre-tax Cost Savings: $127m

Operatingefficiencies

$84m

$55m

$19m

$3m$7m

MaintenanceAdmin & Overhead

LabourMaterials & Supplies

Procurement

$29m

$26m

$2m

Restructuring& synergies

$4m$8m

$1m$14m

$2m


Balance Sheet

$m 30/06/2003 31/12/2002Shareholders’ Funds 18,371 16,261Net Debt: South Africa 1,062 12 Rest of World 5,927 6,989 5,566 5,578

Minority Interests 2,454 2,304Total Capital 27,814 24,143

Net Debt/Total Capital 25.1% 23.1%ROCE 12.7% 17.5%EBITDA/Total Capital 18.8% 23.6%


Cash Flow Analysis

H1 ‘03 H1 ‘02Operating cash flow 1,286 1,381Dividends from JVs & assocs. 203 115Operating cash flow including

dividends from JVs & assocs. 1,489 1,496Net interest & other dividend income (75) 55Taxation (413) (567)Disposal of fixed assets 40 272Available cash flow 1,041 1,256Dividend paid - company & minorities (739) (724)Net acquisitions & disposals (315) (1,752)Capital expenditure - maintenance (547) (271)

- expansionary (625) (579)Other (226) (128)Movements in net debt (1,411) (2,198)Net debt at start of the period (5,578) (2,018)Net debt at end of the period (6,989) (4,216)

Review of OperationsTony Trahar



Highlights - Diamonds

Record headline earnings - up 49% to $248m

DTC sales of $2.92bn up 3%

Operating cash flow of $1,115m

Anglo total dividends for 2002: $126m (2001: $71m)

De Beers net debt reduced by $2,225m to $927m in 1½ years

De Beers debt refinanced at attractive rates H1 ‘03

$248m

H1 ‘02

$166m

Headline earnings up 49%


Headline earnings: $107m

Lower earnings primarily due to strong SA rand/dollar exchange rate

Mine production up 10%

Temporary increase in pipeline stock levels result in reduced production of refined metal

AA plc holding in Anglo Platinum at 72.25%

3.5m oz target remains in place

Continued rand strength: Project timing & funding under review

Highlights - Platinum

H1 ‘03

$107m

H1 ‘02

$158m

Headline earnings down 32%


Highlights - Gold

H1 ‘03

$82m

H1 ‘02

$100m



Gold production steady at 2.8m ozs despite lower grades

Lower contribution due to stronger rand

Hedge book continues to reduce - down 17% to 8.7m oz

AngloGold/Ashanti merger proposal under consideration by Government of Ghana

$117m new expansion projects at TauTona will deliver 1.8m oz over the next 10 years


Highlights - Coal


Lower export thermal coal prices and stronger rand & Australian dollar drive earnings lower

Sales volumes increased 5% to 43.0 mtpa

Australia operating profit increases by 29% to $74m, helped by steady coking coal prices and production

Cerrejón commences expansion to 28 mtpa from 22 mtpa

H1 ‘03

$107m

H1 ‘02

$142m



Highlights - Base Metals


Disputada performs well - initial headline contribution $39m

Losses in zinc offset by higher contribution from copper, nickel & niobium

Skorpion zinc project commissioning; first metal produced in May

Restructuring continues: Anaconda Nickel and Bindura Nickel sold

H1 ‘03

$60m

H1 ‘02

$37m



Highlights - Industrial Minerals


EBITDA up by 23% to $250m

Increased earnings on the back of higher UK margins and improved European performance

New Copebrás phosphate plant performing well

$173m Buxton cement plant to be completed end 2003

H1 ‘03

$113m

H1 ‘02

$89m



Highlights - Paper and Packaging


Strong performance from Mondi Europe despite economic downturn

Cost reductions, profit-improvement initiatives and strong Euro boost performance

$221m expansion of Richards Bay mill announced

$600m in expansionary projects underway H1 ‘03

$178m

H1 ‘02

$153m




Difficult trading conditions with weaker SA domestic markets and impact of strong SA rand

Avmin stake disposed of for $231m

Stake in Kumba 20.1%, right to acquire further shares subject to SA Competition Tribunal approval

Highlights - Ferrous Metals

H1 ‘03

$42m

H1 ‘02

$41m



Outlook remains challenging

While geopolitical tensions have reduced somewhat following Iraq war, low growth forecasts for US, Japan and Europe

Prospect of a continued strong rand/US$ exchange rate concerning

Continued focus on cost savings and efficiency improvements

Anglo’s product & geographic asset mix and strong project pipeline will continue to underpin performance in years ahead

Outlook


NATURAL RESOURCES

8 August 2003


Additional Information Handout Only



Key Dates

Currency Conversion

Ex-dividend (JSE)

Ex-dividend (LSE)

Record date

Payment of Interim Dividend

Annual Results

5 August 2003

18 August 2003

20 August 2003

22 August 2003

15 September 2003

25 February 2004


H1 ‘03 H1 ‘02

Gold 349 302

Platinum 654 515

Palladium 207 370

Rhodium 557 952

Copper 75 72

Nickel 379 298

Zinc 35 36

Coal: thermal (RSA - API 4 index average) 25.75 27

Coal: coking 45 44

Market Prices


US$m

10% change in gold price ± 31

10% change in platinum price ± 32

10% change in palladium price ± 4

10% change in coal price ± 54

10% change in copper price ± 55

10% change in nickel price ± 10

10% change in zinc price ± 17

10% movement in diamond revenue ± 45

10% change in pulp price ± 4

10% movement in SA rand/US$ ± 109

10% movement in AUD/US$ ± 18

10% movement in Euro/US$ ± 11

Headline Earnings Sensitivities

Estimated sensitivities represent 6 month outlook. Excludes the impact of translation of monetary assets & liabilities and the effect of any hedging activities. Stated after tax at marginal rate. Pulp sensitivity depends on recoveries. Diamond sensitivity dependent on consistent volumes, mixes and pricing.


1 Gold incremental production is total additional capacity over life of project. Capex converted to US$ on date of project approval.2 Nominal 3 Incremental production is a per year amount once full production is reached. Capex converted at date of project approval.

Projects

Gold Total additional Production FullApproved

Approved production1 commences prod. capex $m2

Mponeng 4.0m oz 2004 2005 191TauTona - Expansion project 2.3m oz 2004 2005 52TauTona - VCR A & Pillar & CLR <120L 1.8m oz 2005 2008 117Cripple Creek & Victor 2.8m oz 2002 2002 203Moab Khotsong 4.1m oz 2003 2008 690

Total 15.0m oz 1,253

Industrial Minerals Total additional Production FullApproved

Approved production3 commences prod. capex $m

Goiás (completed under budget) 455,000 t 2002 2003 147Buxton Cement Plant 425,000 t 2003 2004 173

Total 320


Platinum Total additional Production Full ApprovedApproved production1 commences prod. capex

$m2

ACP Convertor Phase 1 Meet 2003 2004 250PMR Plant Expansion expansion 2002 2005 99Slag Cleaning Furnace requirements 2003 2003 34Rustenburg UG2 Phase 1 395,000 oz 2002 2006 210

Rustenburg UG2 Phase 23

306,000 oz 2003 2007 444RPM Tailings Retreatment 120,000 oz 2004 2006 186Bafokeng-Rasimone Mine (BRPM) 254,000 oz 1999 2004 317Modikwa Mine 162,000 oz 2002 2003 311Polokwane Smelter 650,000 t 2003 2003 190

concentrate

Total 2,041

1 Incremental production is a per year amount once full production is reached.2 Capex converted at date of project approval.3 Replacement ounces

Projects


1 Incremental production is a per year amount once full production is reached. Capex converted at date of project approval. 2 To maintain & expand production levels at German Creek & Dartbrook. Incremental tonnes - German Creek (1.6m tpa) & Dartbrook (0.9m tpa).3 Extends HBMS life to 2018

Projects

Coal Total additional Production Full Approved


Kleinkopje Expansion 1.3m tpa 2003 2005 56Greenside Expansion 1.0m tpa 2003 2005 17Cerrejón Sur exploration 8Cerrejón 2.0m tpa 2004 2007 50Kriel South Project 5.0m tpa 2005 2007 65German Creek - Capcoal (Grasstree)2 3.9m tpa 2006 2007 106Dartbrook (Kayuga) 3.6m tpa 2004 2005 55Lake Lindsay exploration 35

Total 16.8m tpa 392

Base Metals Total additional Production Full Approved

Approved production commences prod. capex $m

HBMS 777 Project3 2003 2004 276Black Mountain Deeps 45,000 t Zn 2004 2005 110Collahuasi Rosario Project 2002 2004 288Skorpion 150,000 t Zn 2003 2004 454

Total 1,128


1 Incremental production is a per year amount once full production is reached. Capex converted at date of project approval2 60,000 t increase in cut size capacity plus 16,000t additional production of UCWF paper

Projects

Paper and Packaging Total additional Production Full Approved


Frantschach: Steti PM3 20,000 t 2003 2003 20Frantschach: Swiecie Pulp Mill 50,000 t 2004 2004 13Ruzomberok: Pulp Mill 103,000 t 2004 2005 129Ruzomberok: PM18 Expansion 100,000 t 2003 2004 104Richards Bay: BEKP Line 145,000 t 2005 2005 221Merebank: PM2 Rebuild 40,000 t 2003 2003 26

Total 513

Total converting Production Full Approved

Approved capacity commences prod. capex $m

Ybbstal: Flex 05 60,000 t2 2004 2005 51Frantschach: Inncoat Foils - 2003 2003 11Syktyvkar: A4 Cutter 150,000 t 2003 2003 15Merebank: A4 Cutter 92,000 t 2002 2003 12

Total 89


Projects

Diamonds Total additional Production Full Approved

Current projects production1

commences prod. capex $m

2

!Gariep 3m carats 2003 2004 32Finsch Block 4 16m carats 2003 2007 126Venetia Upgrade 1.5m carats pa 2003 2004 1BB1E Premier 3m carats 2004 2007 12Elizabeth Basy Upgrade 2m carats 2004 2004 24

Total 24m carats 195 +1.5m carats pa Venetia

Under review

C-Cut Premier 110m carats 2007 2011 454Finsch Tailings 6m carats 2004 2004 16Snap Lake 19m carats 2007 2008 315Victor 6m carats 2007 2008 305

Total 141m carats 1,090

1 Total additional production shown for the life of the project. Shown on a 100% basis.2 Approved capex is AA plc’s effective attributable share (48.65%), converted to US$ at R7.80=US$1, C$1=US$0.74


$m H1 ‘03 H1 ‘02

Platinum 107 158Gold 82 100Diamonds 248 166Coal 107 142Base Metals 60 37Industrial Minerals 113 89Paper and Packaging 178 153Ferrous Metals 42 41Industries (1) 9Exploration (39) (32)Corporate Activities1 (41) (23)

Headline Earnings 856 840

Analysis of Headline Earnings

1 includes Gold Fields


$m H1 ‘03 H1 ‘02

Platinum 204 389Gold 180 197Diamonds 378 242Coal 172 232Base Metals 98 127Industrial Minerals 136 113Paper and Packaging 357 291Ferrous Metals 74 66Industries 30 52Exploration (50) (40)Corporate Activities1 (45) (88)

Operating Profit2 1,534 1,581

Analysis of Operating Profit

1 includes Gold Fields

2 after operating exceptional items


$m H1 ‘03 H1 ‘02

Platinum 394 229Gold 117 107Coal 74 41Base Metals 155 146Industrial Minerals 136 159Paper and Packaging 233 132Ferrous Metals 22 8Industries 37 25Other 4 3

Total 1,172 850

Capital Expenditure


Headline Variance: Price

Group Total: +$127m

62

(37)

22127

26

8

(1)

28

19

0

20

40

60

80

100

120

140

160

180

AngloGold FerrousMetals

BaseMetals

IndustrialMinerals

Paper &Packaging

Platinum Industries Coal Total

$m


Headline Variance: Volume

Group Total: +$28m

31

(19)

3

28

8

1

(10)12

2

0

10

20

30

40

50

60

Paper &Packaging

Coal Industries Platinum IndustrialMinerals

FerrousMetals

AngloGold BaseMetals

Total

$m


Operating Profit Variance

136

(439)

123

62

(49)

284

(211) 1,534

47

1,581

500

700

900

1,100

1,300

1,500

1,700

1,900

2,100

H1 2002 Price Inflation Exchange Volume CashCost

Non-cashCost

DBI Structural& Other

H1 2003

$m

Operating profit after operating exceptional items


Regional Analysis

Operating profit after operating exceptional items

Operating Profit$m H1 ‘03 H1 ‘02

South Africa 548 864Rest of Africa 299 262Europe 409 210Americas 187 171Australasia 91 74

1,534 1,581


Operating Cost Reconciliation

Subsidiary & JV Operating Costs $mH1 2002 operating costsSubsidiaries (5,756)JVs (share of turnover less operating profit) (401) (6,157) Inflation (235) Exchange (1,222) Volume (260) Depreciation & amortisation (49) Acquisitions & disposals (414) Operating impairments (28) Other costs recovered through revenues (62) Ramp up operations, costs higher than inflation & other (65)H1 2003 operating costs before cost savings (8,492) Cost saving initiatives 127H1 2003 Operating costs

Subsidiaries (7,979)JVs (share of turnover less operating profit) (386) (8,365)


$m

IAS net profit (published) 148STC adjustment 12 Movement on unrealised profit on FEC 2Exploration 11Prior year stock adjustment change in AP accounting policy 13Exceptional items (8)Weighted average exchange impact 2

180Minority interest (51)Depreciation on assets revalued on acquisition (22)

UK GAAP contribution to headline earnings 107

Anglo Platinum Reconciliation


$m

IAS Headline earnings (published)1

140Exploration 18Minority interest (76)

UK GAAP contribution to headline earnings 82

AngloGold Reconciliation

1 before unrealised non-hedge derivatives


Ordinary Preference$m Total shares shares

DBI headline earnings (100%) 414 - -UK GAAP adjustments 58 - -DBI headline earnings - UK GAAP (100%) 472 417 55

AA plc’s 45% ordinary share interest 188 188 -Additional 3.65% ordinary share interest 15 15 -AA plc’s portion of preference shares 45 - 45

AA plc headline earnings 248 203 45

De Beers Reconciliation


EBITDA Reconciliation

$m H1 ‘03 H1 ‘02Net cash inflow from operating activities1,286 1,381Share of EBITDA of JVs & associates 800 588Working capital adjustments 375 290Differences in adjustments for (17) (22)

exceptionals & non-cash EBITDA 2,444 2,237


EBITDA by Business: H1 ‘03

$m

PlatinumGoldDiamondsCoalBase MetalsIndustrial MineralsPaper & PackagingFerrous MetalsIndustriesOther

Total

Operating Profit(incl JVs

& Associates)

204180378172

98136357

7430

(95)

1,534

EBITDA

303323411256235250523115

89 (61)

2,444

ExcludeExceptional

Items

12

12

Add Back SubsidiariesDepreciation

9087

-64

10986

1481429

6

633

Add Back JVs& Associates Depr. & Amort.

128331828

29

262817

190

Add Back SubsidiariesAmortisation

816

-2-

26912

11

75


EBITDA by Business: H1 ‘02

$m

PlatinumGoldDiamondsCoalBase MetalsIndustrial MineralsPaper & PackagingFerrous MetalsIndustriesOther

Total

Operating Profit(incl JVs

& Associates)

389197242232127113291

6652

(128)

1,581

EBITDA

445324266302179203407

9595

(79)

2,237

ExcludeExceptional

Items

(46)

30

(16)

Add Back SubsidiariesDepreciation

4481

-515767

1049

178

438

Add Back JVs& Associates Depr. & Amort.

431241741

18

2025

-

171

Add Back SubsidiariesAmortisation

815

-2-

224-1

11

63


NATURAL RESOURCES

8 August 2003


2003 interim results

Documents