anglo american a world of difference

2004 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 AMERICANA WORLD OF DIFFERENCE

5 August 2004

2004 Interim Results2

Highlights

Record H1: - Earnings up 52% at $1,304m

- EPS up 49% at 91c per share

EBITDA up by $1bn to $3,433m

Record performances from Base and Ferrous Metals

Cost cutting and efficiencies of $248m (2003:$127m)

Interim dividend up 27% at 19c per share


Headline earnings by business unit

5%

17%

11%

35%

11%16%

17%

9%

Platinum Gold Diamonds Coal Base Metals

Industrial Minerals Paper & Packaging Ferrous & Industries

10%

7% 13%

29%

13%

5%

24%*

13%

H1 2003 H1 2004

*NB:Headline earnings for Paper and Packaging have been adjusted for the 6 months ended 30 June 2003 as net interest for wholly owned operations in Paper and Packaging is now accounted for centrally within Corporate Activities


15%

29%41%

15%

Geographic headline earnings mix

H1 2004

Europe South Africa

Americas Rest of World

H1 2003

30%

30%12%

28%


$2,377$2,237

$2,444

$3,433

H1 2001 H1 2002 H1 2003 H1 2004

Strong cash generation into 2004

EBITDA – up 40%


-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

1996 1997 1998 1999 2000 2001 2002 2003 2004

%

The economic cycle - where are we?

OECD industrial production

Source: MSU


55

555

1055

1555

2055

2555

3055

3555

1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004100

120

140

160

180

200

220

240

260

Falling inventories, rising prices

Total LME inventories & MG base metals index

Source: UBS

LME inventories (kt)

MG base metals

Nickel, Aluminium, Copper LME inventoriesMG Base Metal Index Cash – Price Index

MG base metals

LME inventories (kt)


H1:Robust commodity prices

80

100

120

140

160

180

200

220

240

260

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

* API4 FOB Richards Bay Source: MSU

H1 2004

H1 2003

Coal *

Copper

Platinum

Zinc

Gold


Strategy for growth

Growth through projects

Growth through acquisitions

Value from cost cutting and efficiencies


2004 2005 2006 2007

Siguri$52m

Finsch$130m

Buxton$173m

RPM Ph 1$210m

W.L. Tailings$186m

Mponeng$191m

Grasstree$106m

TauTona$52m

PMR Expan.$99m

Kleinkopje$56m

Isibonelo $65m

Dartbrook$55m

Black Mtn$110m

Ruzomberok$233m

Richards Bay$235m

Merebank$150m

Ticor 2$54m

RPM Ph 2$444m

Skorpion$454m

ACP Project$250m BRPM

$317m

HBMS 777$276mCollahuasi

$288m

Cerrejón$17mCopebras

$22m

Approved $6bn project portfolio

Chagres$21m

Anglo Platinum AngloGold AshantiDiamonds Coal Base Metals Industrial Minerals Paper & Packaging Ferrous Metals

Ticor 1$137m

El Soldado$80m

Twickenham$343m

Kroondal$138m

Unki$84m

Selected major authorised projects. 100% of subsidiaries and AA plc’s share of JV’s and associates. Full production dates.


Quellaveco Copper (Peru)

Barro Alto Nickel (Brazil)

Hope Downs* Iron ore (Australia)

Morro Sem BoneNickel (Brazil)

Western Complex

Gamsberg Zinc

Sishen South Iron ore

Obuasi Deeps (Ghana)

Pandora

Los Bronces expansionCopper (Chile)

Collahuasi expansionCopper (Chile)

Dawson Valley (Australia)

Sishen ExpansionIron ore

Lake Lindsay (Australia)

$2.0bnSouth Africa

$2.5bnSouth America

$2.6bnRest of the World

Longer term unapproved project portfolio

Anglo Platinum AngloGold AshantiDiamonds Coal Base Metals Industrial Minerals Paper & Packaging Ferrous Metals

Snap Lake (Canada)

*It is anticipated that final Kumba Board approval to proceed will be sought before the end of the year


Actively managing the asset base

• Mining acquisitions for cash at current

stage in the cycle unlikely

• But opportunities in IMD/Paper &

Packaging:

– Acquisition of Frantschach minority

• Sale of Gold Fields stake ($1.18bn)

1.3

0.9

Acquisitions Disposals

H1 cash acquisitions and disposals ($bn)


$4m $10m$3m $22m$1m

$40m

$116m

$52m

Procurement Operating efficiencies

Maintenance Admin & overhead Labour Materials & supplies

Cost savings and efficiency improvements: $248m

$188m

$60m


REVIEW OF FINANCIALS

Tony Lea


Headline earnings

$m H1 ’04 H1 ’03

Profit for the financial period 1,709 760

Exceptional items (535) 7

Amortisation of goodwill 112 98

Related tax & minority interests 18 (9)

Headline earnings for the financial period 1,304 856

EPS (cents per share) 91 61

DPS (cents per share) 19 15

125%

%ch

52%

49%

27%


Headline earnings variances

(40)(31)

(105) (20)(53)

(216)

866

(28)

856

1,30475

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

H1 2003 Price Exchange Inflation Volume Cashcost

Non-cashcost

Interest DBI Structural& Other

H1 2004

$m


Headline variance: Exchange

(3)

5(35)

7

(36)

(37)

(100)

(216)(17)(250)

(200)

(150)

(100)

(50)

-Platinum

BaseMetals Gold Coal

Corporate &Exploration

Ferrous &Industries

IndustrialMinerals

Paper &Packaging Total

Group total = -$216m

$m


Headline variance: Price

509

86682

120

15

(71)172

39

0

100

200

300

400

500

600

700

800

900

1,000

Base Metals Platinum Coal Ferrous &Industries

Gold IndustrialMinerals

Paper &Packaging

Total

Group total = +$866m$m


$m 30/06/2004 31/12/2003

Shareholders’ Funds 22,531 19,772

Net Debt:

South Africa 2,702 3,145

Rest of World 6,028 8,730 5,488 8,633

Minority Interests 4,160 3,396

Total Capital 35,421 31,801

Net Debt/Total Capital 24.6% 27.1%

ROCE 13.7% 10.7%

EBITDA/Total Capital 20.4% 17.3%

Balance sheet


H1 ‘04 H1 ‘03

EBITDA 3,433 2,444

Share of EBITDA of JVs & associates (938) (800)

Increase in working capital (467) (375)

Provisions & other non cash 47 17

Operating cash flow 2,075 1,286

Dividends from JVs & associates 147 203 Operating cash flow including

dividends from JVs & associates 2,222 1,489

Net interest & other dividend income (140) (75)

Taxation (246) (413)

Disposal of fixed assets 56 40

Available cash flow 1,892 1,041

Dividends paid - company & minorities (686) (739)

Net acquisitions & disposals 618 (315)

Capital expenditure - maintenance (673) (547)

- expansionary (724) (625)

427 (1,185)

Other (524) (226)

Increase in net debt (97) (1,411)

Cash flow analysis


REVIEW OF OPERATIONS

Tony Trahar


Highlights – Base Metals

• Higher prices, acquisitions and new projects boost performance

• Minera Sur Andes contributes $194m

• Commissioning of Collahuasi Rosario project ($654m) ahead of schedule and under budget

• Skorpion at 85% of design capacity - full production set for end 2004

• ROCE (annualised) of 23.5% 60

455

H1 '03 H1 '04

Headline earnings up 658% ($m)


Highlights – Paper and Packaging

• European markets impacted by strong Euro and slower growth

• Bauernfeind (€344m) and Frantschach minority (€320m) acquired

• Structure: creation of single global UCWF and packaging businesses

• Ruzomberok and Mondi SA expansions on track and within budget

• Previous reporting basis 2004: headline earnings of $174m (H1 2003: $178m*)

205*

226

H1 '03 H1 '04


*NB:Headline earnings for Paper and Packaging have been adjusted for the 6 months ended 30 June 2003 as net interest for wholly owned operations in Paper and Packaging is now accounted for centrally within Corporate Archives


Highlights – Diamonds

• Solid performance from De Beers

• DTC sales of $2.98bn up 2%

• Operating cashflow of $870m

• Net Debt (including preference shares) reduced by 34% to $1,169bn

• Preference share redemption of $175m

• US Department of Justice settlement in July

248

217

H1 '03 H1 '04

Headline earnings down 13% ($m)


Highlights – Ferrous Metals and Industries

• Improved prices for iron ore, steel, manganese, ferrochrome and vanadium

• Strong performances from Highveld, Scaw and Samancor; improved results from Boart and Terra

• First fully consolidated contribution from Kumba

• Kumba: attractive iron ore growth opportunities

41

207

H1 '03 H1 '04



Highlights – Coal

• South African & South American earnings up significantly (+116%)

• Australian earnings impacted by– A$ strength– Moranbah – production resumption in H2

• H2 realised prices higher than H1

• Proposed Western Complex joint venture announced in May 2004

• Drilling commenced on Xiwan Lease Area (China) on 1 July 2004

107

147

H1 '03 H1 '04



Highlights – Platinum

• Revenues increased due to higher

prices and greater sales volumes

• Platinum production up 26.6% at

1.16m oz (excluding pipeline

movements, up 7.8%)

• Cost initiatives gain momentum

• Target of 2.45m oz in 2004 remains

on track

107

139

H1 '03 H1 '04



Highlights – Industrial Minerals

• Solid performance despite difficult UK markets

• Strengthening market conditions in Czech Republic and Poland

• Copebrás operating profit doubled due to market strength and contribution from new Goiás plant

• New Buxton cement plant (UK) operating at capacity

113 114

H1 '03 H1 '04

Headline earnings stable ($m)


Highlights – Gold

• Lower earnings on the back of strong

rand and lower production at Morila

• Cash costs of $260/oz

• AngloGold Ashanti transaction

completed in April - integration of

assets progressing well

• Acquisition of 29.9% stake in Trans-

Siberian Gold

82

66

H1 '03 H1 '04

Headline earnings down 20% ($m)


Outlook

Positive global environment for commodities

US/Japan GDP growth encouraging

China set for soft landing?

European growth remains sluggish

Anglo’s product and geographic diversity

to underpin performance


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 RESOURCES5 August 2004


ADDITIONAL INFORMATION

Handout only


Key Dates

• Currency Conversion

• Ex-dividend (JSE)

• Ex-dividend (LSE)

• Record date

• Payment of Interim Dividend

• Annual Results

2 August 2004

16 August 2004

18 August 2004

20 August 2004

21 September 2004

23 February 2005


Market Prices

$m H1 ‘04 H1 ‘03

Gold 401 349

Platinum 850 654

Palladium 248 207

Rhodium 696 557

Copper 125 75

Nickel 619 379

Zinc 48 35

Coal: thermal (RSA - API 4 index average) 49.15 25.75


US$m

10% change in gold price ± 3610% change in platinum price ± 5110% change in palladium price ± 710% change in coal price ± 8110% change in copper price ± 7710% change in nickel price ± 910% change in zinc price ± 2010% change in pulp price ± 410% movement in SA rand/US$ ± 24910% movement in AUD/US$ ± 2910% movement in Euro/US$ ± 1410% movement in £/US$ ± 17

Headline Earnings Sensitivities

Estimated sensitivities represent 6 month outlook. Excludes the effect of any hedging activities. Stated after tax at marginal rate. Pulp sensitivity depends on recoveries.


Projects

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.

Gold Life of mine Production Full ApprovedApproved production1 commences prod. capex $m2

Mponeng 4.8m oz 2004 2007 191

TauTona - Expansion project 0.5m oz 2004 2006 52

TauTona - VCR A & Pillar & CLR <120L 2.4m oz 2005 2010 117

Moab Khotsong 4.9m oz 2003 2011 690

Siguri - CIP project 2.1m oz 2005 52

Total 14.7m oz 1,102

Industrial Minerals Total additional Production Full ApprovedApproved production3 commences prod. capex $m

Buxton Cement Plant 500,000 t 2004 2004 173

Copebras 121,000 t 2005 2005 22

Total 195


Projects

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

Platinum Total additional Full ApprovedApproved production1 prod. capex $m2

ACP Convertor Phase 1 2004 250

PMR Plant Expansion 2005 121

Rustenburg UG2 Phase 1 360,000 oz 2007 210

Bafokeng Rasimone Mine (BRPM) 250,000 oz 2005 317

W. Limb Tailings Retreatment 120,000 oz 2008 186

Rustenburg UG2 Phase 23 306,000 oz 2009 444

Twickenham 160,000 oz 2009 343

Kroondal 280,000 oz 2006 138

Unki 58,000 oz 2008 84

Total 2,093

Meet expansion


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 2018.4 Extends El Soldado life to 2027

Coal Total additional Production Full ApprovedApproved production1 commences prod. capex $m2

Kleinkopje Expansion 1.3m tpa 2004 2004 56Greenside Expansion 1.0m tpa 2003 2004 17Cerrejón 2.0m tpa 2005 2007 17Isibonelo 5.0m tpa 2005 2006 65German Creek - Capcoal (Grasstree)2 3.9m tpa 2006 2006 106Dartbrook (Kayuga) 3.7m tpa 2004 2004 55Total 16.9m tpa 316

Base Metals Total additional Production Full ApprovedApproved production commences prod. capex $m

HBMS 777 Project3 2003 2004 276Black Mountain Deeps 2004 2006 110Collahuasi Rosario Project 2004 2004 288Skorpion 150,000 t Zn 2003 2004 454El Soldado pit extension4 2008 2008 80Codemin II 4,000 t Ni 2005 2005 67Total 1,275


Projects

1 Incremental production is a per year amount once full production is reached. Capex converted at date of project approval. 2 Made up of 20,000t pulp and 10,000t paper.3 60,000 t increase in cut size capacity plus 16,000t additional production of UCWF paper.

Paper and Packaging Total additionalProduction FullApprovedApproved production1 commences prod.capex $m1

Ruzomberok: Pulp Mill 105,000 t 2004 2005 129

Ruzomberok: PM18 Expansion 100,000 t 2003 2004 104

Richards Bay: BEKP Line 145,000 t 2004 2005 235

Merebank: PM31 Rebuild 160,000 t 2005 2006 150

Total 618

Total convertingProduction FullApprovedApproved capacity3 commences prod.capex $m

Ybbstal: Flex 05 60,000 t³ 2004 2005 51

Total 51


Projects

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%).

Diamonds Total additional Production Full ApprovedCurrent projects production1 commences prod. capex $m2

Finsch Block 4 17m carats 2004 2006 130

BB1E Cullinan 5m carats 2004 2007 12

Elizabeth Bay Upgrade 2m carats 2004 2004 27

Total 24m carats 169

Estimated

Under review / awaiting approval capex $m2

C-Cut Cullinan 97m carats 2009 2014 473

C-Cut BA West Lower Cullinan 18m carats 2009 2012 45

Finsch Block 5 16m carats 2009 2010 180

Finsch Plant Upgrade 2m carats 2006 2007 32

Snap Lake 19m carats 2007 2008 282

Victor 6m carats 2008 2008 321

Total 158m carats 1,333


Projects

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

Ferrous Metals and IndustriesTotal additional Production Full Approved

Approved production1 commences prod. capex $m1

Sishen – up current classifier 1 000 ktpa 2004 2004 13

Ticor: Mineral Sands Furnace 1 125 kt slag 2003 2006 137

Ticor: Mineral Sands Furnace 2 125 kt slag 2003 2007 54

Total 204

EstimatedAwaiting approval capex $m

Hope Downs 25 mtpa Sishen Expansion 10 mtpa - Sishen South 9 mtpa 300


Analysis of Headline Earnings

$m H1 ‘04 H1 ‘03

Platinum 139 107

Gold 66 82

Diamonds 217 248

Coal 147 107

Base Metals 455 60

Industrial Minerals 114 113

Paper and Packaging¹ 226 205

Ferrous Metals 207 41

Exploration (42) (39)

Corporate Activities¹² (225) (68)

Headline Earnings 1,304 856

¹Headline earnings for Paper and Packaging have been adjusted for the 6 months ended 30 June 2003 as net interest for wholly owned operations in Paper and Packaging is now accounted for centrally within Corporate Activities² Includes Gold Fields


Analysis of Operating Profit

$m H1 ‘04 H1 ‘03

Platinum 320 204

Gold 133 180

Diamonds 350 378

Coal 196 172

Base Metals 565 98


Paper and Packaging 320 357

Ferrous Metals and Industries 387 104

Exploration (56) (50)

Corporate Activities1 (112) (45)

Operating Profit2 2,248 1,534

1 includes Gold Fields.2 after operating exceptional items.


Capital Expenditure

$m H1 ‘04 H1 ‘03

Platinum 292 394

Gold 227 117

Coal 64 74

Base Metals 127 155


Paper and Packaging 409 233

Ferrous Metals and Industries 144 59

Other 7 4

Total 1,397 1,172


Headline variance: Volume

Group total = +$75m

5

37

75

14

27

(17)

(20)29

0

20

40

60

80

100

120

Platinum Paper &Packaging

Base Metals FerrousMetals &

Industries

IndustrialMinerals

Gold Coal Total

$m


107

1,195

106

(188) (33) (62)(411)

2,248

1,534

500

1,000

1,500

2,000

2,500

3,000

H1 2003 Price Exchange Inflation Volume CashCost

Non-cashCost

Structural& Other

H1 2004

Operating Profit Variance

$m

Operating profit after operating exceptional items


Regional Analysis

$m H1 ‘04H1 ‘03

South Africa 777 548

Rest of Africa 241 299

Europe 416 409

Americas 723 187

Australasia 91 91

2,2481,534

Operating profit


$m

H1 2003 operating costs

Subsidiaries (7,979)

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

Inflation (247)

Exchange (945)

Volume (279)

Depreciation & amortisation (81)

Structural changes (775)

Operating impairments 12

Costs higher than inflation & other (176)

H1 2004 operating costs before cost savings (10,856)

Cost saving initiatives 248

H1 2004 Operating costs

Subsidiaries (10,279)

JVs (share of turnover less operating profit) (329) (10,608)

Operating Cost Reconciliation

Subsidiary & JV Operating Costs


Anglo Platinum Reconciliation

$m

IAS net profit (published) 217STC adjustment (9) Movement on unrealised profit on FECs (9)Exploration 11Profit on assets exchanged not recognised for UK GAAP (10)Net exceptional items 22Weighted average exchange impact 3Other 4

229Minority interest (58)Depreciation on assets revalued on acquisition (32)

UK GAAP contribution to headline earnings 139


AngloGold Ashanti Reconciliation

$m

IAS Headline earnings (published)1 111

Exploration (excluding joint ventures) 19

Amortisation on bond discount 5

Depreciation on assets revalued on acquisition (5)

Minority interest (64)

UK GAAP contribution to headline earnings 66

1 Before unrealised non-hedge derivatives and fair value losses on interest rate swaps


Ordinary Preference$m Total shares shares

DBI headline earnings – IFRS (100%) 424 - -

GAAP adjustments (14) - -

DBI headline earnings - UK GAAP (100%) 410 357 53

AA plc’s 45% ordinary share interest 161 161 -

Additional 3.65% ordinary share interest 13 13 -

AA plc’s portion of preference shares 43 - 43

AA plc headline earnings 217 174 43

De Beers Reconciliation


Operating Profit Exclude Add Back Add Back Add Back JVs$m (incl JVsExceptional Subsidiaries Subsidiaries & Associates

& Associates) Items Depreciation Amortisation Depr. & Amort. EBITDA

Platinum 320 - 149 8 2 479

Gold 133 - 143 18 23 317

Diamonds 350 - - - 45 395

Coal 196 - 68 2 20 286

Base Metals 565 - 118 - 35 718

Industrial Minerals 145 - 105 30 1 281

Paper & Packaging 320 - 184 14 14 532

Ferrous Metals & Industries 387 - 127 3 46 563

Other (168) - 7 12 11 (138)

Total 2,248 - 901 87 197 3,433

EBITDA by Business: H1 ‘04


Operating Profit Exclude Add Back Add Back Add Back JVs$m (incl JVsExceptional Subsidiaries Subsidiaries & Associates

& Associates) Items Depreciation Amortisation Depr. & Amort. EBITDA

Platinum 204 90 8 1 303

Gold 180 12 87 16 28 323

Diamonds 378 - - 33 411

Coal 172 64 2 18 256

Base Metals 98 109 - 28 235

Industrial Minerals 136 86 26 2 250

Paper & Packaging 357 148 9 9 523

Ferrous Metals & Industries 104 43 3 54 204

Other (95) 6 11 17 (61)

Total 1,534 12 633 75 190 2,444

EBITDA by Business: H1 ‘03


ANGLO AMERICANADDING VALUE TO

NATURAL RESOURCES5 August 2004

anglo american a world of difference

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