Good evening ladies and gentlemen

ANGLO AMERICAN DE BEERS SEMINAR 3 NOVEMBER 2014

MARK CUTIFANI, PHILIPPE MELLIER, BRUCE CLEAVER,PAT LOWERY, GARETH MOSTYN

Mark Cutifani

Ladies and gentlemen, very good to see you here. Quite a good turnout actually. Im very pleased to see you this afternoon. I am going to be relatively short because I think it is most important to get the De Beers team up under Philippe. Im just going to make a few very quick observations. Firstly, to answer the first question, De Beers fits the Anglo American portfolio like a glove. Its a firm and determined hand. Our relationship has been a long one and we do know each other like an old married couple. So if I could say that our most recent transaction, the 40% stake purchase, is a bit like renewing ones marriage vows. Today you will hear how the relationship is continuing to develop and improve, mature. And if I could say, based on the results weve seen so far were very pleased that we have renewed those vows and certainly very happy with the progress the team has made.

Anglo Americans value proposition to shareholders is a relatively simple one. We are the mining industrys diversified miner. We believe our portfolio mix will outperform our peers through the cycle as we focus on quality assets across ten commodities. Some may get nine, some may get 11; if you throw palladium in you will get ten. A mix of commodity, geography and downstream market diversity is unique in our industry, helping us manage risks and recognise opportunities not available to other industry players. Our focus on mine to market value opportunities will help us reduce cost and realise prices to support margin growth. And we have certainly seen that in the relatively short time that weve been working on both of those areas. And in De Beers you will see that story play out in a slightly different way, but nevertheless a very consistent approach in terms of what were doing across the business.

Supported by a capital discipline that we have been articulating in terms of our five key steps. Very focussed on value delivery, and of course in De Beers with the new investments that weve been talking to really incremental additions to the portfolio we see a very exciting story. So the reason why we believe the mix works is we understand the market and the nature of the diamond business. That is as Anglo American with our team. We operate in complementary jurisdictions and the breadth of the Anglo American reach supports De Beers in its strategic positioning. The new Anglo American operating model and the technical depth we are building with De Beers will support their improvement and our own improvement across the group. And if we look at the significant savings that weve made already in terms of the integration I think the value proposition is a compelling one.

Right across the board the depth that were building in the talent pool will certainly support De Beers achieve its objective. And as a final comment, Philippe reminds us with his executive committee that diamonds is not a commodity. Our involvement with De Beers does give us a unique perspective in terms of markets, and an extra string to our bow, in our view, in making sure that we are taking the learnings that they have developed over the years back into our long-term relationship model that we think is also another key differentiator that we are building in this industry. Looking at the realised prices and how we are doing against our peers in met coal and other commodities we think that relationship model is a very important one.

To simply demonstrate how far weve come in a very short period of time, De Beers has delivered a material and improved contribution to our first half earnings, as you would have seen. The De Beers team is well on the way to hitting its and our 2016 ROCE target for the group even after taking into account the price paid for the 40% stake. So at the De Beers level Im very impressed with the progress theyve made. Certainly across the board good progress on all fronts. We have seen a number of value opportunities that will help us exceed that potential we first saw back in 2012. So, again, making sure that that investment is a very strong one, or certainly one that will enhance both groups. So, without further ado, I will pass over to Philippe. I know you as well as we are very keen to hear the De Beers story.

Philippe Mellier

Thank you Mark. Now we are going to switch from a slight Australian accent to a very strong French one now. I hope you can understand what I am going to say. We are going to present and after that we will have around half an hour for Q&A at the end of the presentation.

Id just like to make some introductory comments to set the scene, and after that with the team we will move into more detail. Here I am with key members of my team, Bruce Cleaver, who is the Executive Head of Strategy, Pat Lowery, our Executive Head of Technical, and Gareth Mostyn, our Finance Director. Bruce will cover the industry and the midstream part of the business, and Pat will be covering the upstream part of the business and the financials will be with Gareth.

We all believe at De Beers that we are very well positioned for growth. In the next one hour and a half during our presentation we will try to give you a sense of why we are of this opinion. I hope that many of you have been reading very carefully the 2014 diamond insight report we recently published. I have seen that some have it. And we have provided some spare copies on your left here. I think it is going to give you a good flavour of why the industry is looking at the future and where the opportunities in the diamond pipelines are lying ahead of us. We will be very happy to take any questions you may have at the end of the presentation.

As you may have heard before, and Mark has already said, diamonds are different and diamonds are not a commodity. But they fit the profile of commodities in some ways. There are many important distinctions to be made when we compare diamonds to other products in the portfolio of Anglo American like iron or platinum. The fact that diamonds are not homogenous is one obvious example, as it means that there is inimitably more complexity in the selling and marketing of our product and an attendant requirement for more specialist knowledge when looking to maximise value of every diamond we sell.

Perhaps the most significant difference to consider today relates to motivation to buy them. People really dont need to buy diamonds in the same way as they need to buy iron for large-scale manufacturing activities like cars or infrastructure, or platinum for automotive reasons. For many reasons this insight has been the cornerstone of De Beers and the diamond industrys success in the past and today, and we have been able to employ our marketing expertise to establish a uniquely powerful emotional niche for diamonds, the famous diamond dream.

So although people may not need to buy diamonds in the same way as they need to buy iron or platinum, telling your beloved that she doesnt need a diamond engagement ring is not really an option certainly for the males that are present here today. What this means is that consumers desire for diamond jewellery is the only true source of value in the diamond industry. And understanding the consumer is therefore crucial to sustainable success in the diamond industry.

Over the course of the afternoon for the next one hour and a half we will give you an overview of the assets and the activities within De Beers. We believe this represents the investment highlights. We believe that the value of De Beers is driven by a unique combination of tangible assets, intangible assets and a highly favourable industry outlook, and our ability to capitalise on this fully as a result of our full range of activities and operating structure. We will cover that in more detail with Bruce later on.

Of course one of the most important of our tangible assets is a portfolio of mines well positioned on the cost curve with long life reserves. Pat will be going through that in much more detail. Intangible assets include our rough diamond trading expertise, our iconic brand strength the De Beers brand is clearly one of the most well-known brands around the world and outstanding relationship with key stakeholders. Each of these is fundamentally important to our ability to thrive today, as well as our potential to grow. And our growth prospects are further enhanced by a favourable industry outlook that sees growth in supply outstripped by growth in demand even in the most pessimistic outlook.

As this demand is expected to be driven substantially by the growth of middle classes in emerging markets such as China and India today, potentially Indonesia or Philippines tomorrow, this represents an important point of difference for the Anglo American portfolio. Diamond demand has spiked later in the economic cycle than other commodities, and this significantly mitigates some demand side risks. We will address each of these areas in more detail, but one more important point to make at this juncture is that when it comes to De Beers the whole is more important than the sum of the parts.

De Beers strategy is focussed on sustainably capturing the maximum value of each carat mined. This is something I repeat with the team many times a day. As consumer desire for diamond jewellery is the only true source of value in the industry we put the consumer at the start of the pipeline and then develop a holistic strategic approach to support this insight with our activities elsewhere in the value chain. And we cover most of the points in the value chain.

De Beers activities span the diamond pipeline, and this differentiates De Beers from other companies in the diamon