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Anglo American Interim Results 2019
ANGLO AMERICAN PLC (THE "COMPANY")
REGISTERED OFFICE: 20 CARLTON HOUSE TERRACE, LONDON SW1Y 5AN
REGISTERED NUMBER: 3564138 (INCORPORATED IN ENGLAND AND WALES)
LEGAL ENTITY IDENTIFIER: 549300S9XF92D1X8ME43
ISIN: GBOOB1XZS820
JSE SHARE CODE: AGL
NSX SHARE CODE: ANM
25 July 2019
Anglo American Interim Results 2019
Sustained business performance delivers 19% increase in underlying EBITDA to $5.5 billion
Mark Cutifani, Chief Executive of Anglo American, said: "We are building on the improvements we have
embedded across our business and benefiting from our diversification as stronger prices for certain products
more than offset price weaknesses elsewhere, generating a 19% increase in underlying EBITDA to $5.5 billion
and a 22% ROCE. The strength of our balance sheet and disciplined capital allocation support our investment
in highly attractive organic growth while delivering a 27% dividend increase, in line with our 40% payout ratio,
and our intention to return up to $1 billion through a share buyback.
"Our determination to reach and sustain zero harm is our most pressing challenge. No degree of financial
performance is worth a life, however, and in the first six months of 2019, regrettably three of our colleagues
died in workplace safety incidents, two of which were vehicle related. Two additional fatal transport incidents
in Chile in late June and early July caused the loss of ten of our colleagues and are being urgently investigated.
The safety of our people - at work or travelling to and from home - is paramount and we have instructed
additional wide-ranging measures, including with all those who provide transport services to us.
"Our focus on efficiency and productivity, driven by our Operating Model implementation, is continuing to
deliver improvements. Compared to 2012, our productivity(1) per employee more than doubled, driving a
16 point increase in Mining EBITDA margin(2) to 46% and placing us amongst the very best in the industry. We
expect our targeted cost and volume benefit for 2019 - adjusted to $0.4 billion to reflect our decision to pull
back production at De Beers - to come through in the second half of the year, building upon the $4.6 billion of
annual underlying EBITDA improvement delivered since 2012. And looking ahead, we are committed to
delivering the additional $3-4 billion annual underlying EBITDA run-rate improvement by 2022, relative to 2017.
"Anglo American is a resilient and highly competitive business with a clear asset-led strategy. Our focus is on
unlocking the very significant additional potential that we see within the business - and to do it safely and
responsibly. Our world-class portfolio benefits from a range of high margin, high return, fast payback organic
growth options, sequenced over time, particularly in those products that will supply a cleaner, more electrified
world and that satisfy the consumer-led demands of a fast-growing global middle class."
Financial highlights - six months ended 30 June 2019
- Generated underlying EBITDA* of $5.5 billion, a 19% increase, and $1.3 billion of attributable free
cash flow*
- Delivered profit attributable to equity shareholders of $1.9 billion, a 46% increase
- Net debt* increased to $3.4 billion following adoption of IFRS 16. Net debt of 0.3x underlying EBITDA
- Targeting full year 2019 cost and volume improvements of $0.4 billion adjusted for De Beers production
- Increased interim dividend of $0.62 per share, equal to 40% of first half underlying earnings*
- Share buyback - intention to return up to $1 billion
- Basic headline earnings per share of $1.48 compared to $1.03 in the comparative period
Year ended 30 June 2019 30 June 2018 Change
US$ million, unless otherwise stated
Revenue 14,772 13,698 8%
Underlying EBITDA* 5,451 4,577 19%
Mining EBITDA margin* 46% 41%
Attributable free cash flow* 1,325 1,606 (17)%
Profit attributable to equity shareholders of the Company 1,883 1,290 46%
Underlying earnings per share* ($) 1.58 1.23 28%
Earnings per share ($) 1.48 1.02 45%
Dividend per share ($) 0.62 0.49 27%
Group attributable ROCE* 22% 19%
Terms with this symbol * are defined as Alternative Performance Measures (APMs). For more information on the APMs used by the
Group, including definitions, please refer to page 61 in the full announcement (link below).
Short form announcement
This short form announcement is the responsibility of the directors of Anglo American plc and is a summary
of the information in the detailed results announcement available on
https://senspdf.jse.co.za/documents/2019/JSE/ISSE/ANAAL/IntRes2019.pdf and on the group's website
https://www.angloamerican.com/investors/financial-results-centre
This announcement does not contain full details and any investment decision in relation to the Company's
shares should be based on the full announcement. The full announcement is available to inspect, at no
charge, at the Company's registered office: 20 Carlton House Terrace, London SW1Y 5AN and the office of
the sponsor during standard office hours.
The financial data disclosed above relates to Anglo American and/or its shares.
The Company has a primary listing on the Main Market of the London Stock Exchange and secondary
listings on the Johannesburg Stock Exchange, the Botswana Stock Exchange, the Namibia Stock Exchange
and the SIX Swiss Exchange.
JSE share code: AGL ISIN: GBOOB1XZS820
Sponsor
Rand Merchant Bank (A division of First Rand Bank Limited)
Cnr Fredman Drive and Rivonia Road, Sandton, 2196
25 JULY 2019
For further information, please contact:
Media Investors
UK UK
James Wyatt-Tilby Paul Galloway
james.wyatt-tilby@angloamerican.com paul.galloway@angloamerican.com
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968 8718
Marcelo Esquivel Robert Greenberg
marcelo.esquivel@angloamerican.com robert.greenberg@angloamerican.com
Tel: +44 (0)20 7968 8891 Tel: +44 (0)20 7968 2124
South Africa Emma Waterworth
Pranill Ramchander emma.waterworth@angloamerican.com
pranill.ramchander@angloamerican.com Tel: +44 (0)20 7968 8574
Tel: +27 (0)11 638 2592
Sibusiso Tshabalala
sibusiso.tshabalala@angloamerican.com
Tel: +27 (0)11 638 2175
Notes to editors:
Anglo American is a global diversified mining business and our products are the essential ingredients in almost every
aspect of modern life. Our portfolio of world-class competitive mining operations and undeveloped resources provides
the metals and minerals to meet the growing consumer-driven demands of the world's developed and maturing
economies. With our people at the heart of our business, we use innovative practices and the latest technologies to
discover new resources and mine, process, move and market our products to our customers around the world.
As a responsible miner - of diamonds (through De Beers), copper, platinum and other precious metals, iron ore, coal
and nickel - we are the custodians of what are precious natural resources. We work together with our key partners and
stakeholders to unlock the sustainable value that those resources represent for our shareholders, the communities and
countries in which we operate and for society at large. Anglo American is re-imagining mining to improve people's lives.
http://www.angloamerican.com
Date: 25/07/2019 08:00:00
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