2008 Annual Results Presentation Neville Nicolau Bongani Nqwababa 9 February 2009 1 2008 Annual results
2008 Highlights • Noticeable improvement in safety • Record headline earnings of R13.3 billion, up 8% • 2.39 million refined platinum ounces in line with mid year forecast • 2.22 million ounces sold • Unit operating costs per equivalent refined platinum ounce up 35.6% • New mining right conversions, ESOP in place • Global economic impacts addressed 2 2008 Annual results
2008 Annual results Safety Safety is our first value Zero is possible 3
Safety • Managed operations injury frequency rate down (LTIFR 2.03 to 1.74) • Increased safety excellence – 34 sites achieved 1 million fatality free shifts up from 11 • Anglo Group “Safety Way” management system 2.05 2.03 1.82 1.8 1.52 Significant operational safety achievements • Union: 6.6 million fatality free shifts and 10 million fall of ground fatality free shifts • Lebowa: 2 million fatality free shifts • Mortimer Smelter: 3 years and 8 months LTI free • Rustenburg Mine: 6 million fall of ground LTI / 200 000 hours fatality free shifts 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 4 2008 Annual results
Operations performance Equivalent refined platinum production from operations 2,700 9 (121) 2,600 18 83 2,500 2,471 84 1194 2,465 (60) 25 (19) (20) 5 (8) (2) 2,400 000's oz 2,300 • Turffontein closure • Flood event • Mainly purchases • Safety issues • Safety issues from Eland Platinum 2,200 • Labour issues 2,100 2,000 2007 KPM Mod Mar AS RS Mog BRPM Leb US Mot Tw ick WLTR Other 2008 purchases 5 2008 Annual results
Major challenges in 2008 Challenges Remedial Action Amandelbult flooding Returned to full production – dewatered in 8 weeks Electricity supply constraints 90% adequate for 2.39m refined ounces Turffontein rehabilitation Completed on schedule Mogalakwena concentrator Availability returned – North commissioning Smelter run-out incidents Downtime minimised – 2.39m refined ounces Safety stoppages Safety improvement plan rolled-out Input cost inflation >> CPI Manage supply chain – quick reductions 6 2008 Annual results
Short term action • 2009 – 2.4 million ounces in line with near term demand • Cost management to reduce operating costs - Achieve supply chain benefits quickly - Focus on productivity improvements - Reduce number of contract employees • Employee retrenchment avoidance measures - Freeze all non-critical appointments - No overtime - Re-skilling and re-deployment • Debt management in place • Respond to change on an ongoing basis 7 2008 Annual results
2008 Annual results Bongani Nqwababa Financial overview 8
Financial performance Year ended 31 Dec R million 2008 2007 Change � 9% Net sales revenue 50,765 46,616 � 11% Gross profit on metal sales 17,083 19,097 � 18% Gross profit margin (%) 33.7% 41.0% � 32% Effective tax rate % 23,4% 34,4% � 8% Headline earnings 13,292 12,325 � 7% Headline earnings per share (cents) 5,609 5,239 � 35% Capital expenditure 14,388 10,653 � 229% Net debt (13,459) (4,086) � 33% Full year ordinary dividends (cents) 3,500 5,200 9 2008 Annual results
Headline earnings Headline earnings increased by 8% 25,000 (5,221) 1,981 23,000 4,975 21,000 19,000 (2,055) 17,000 3,713 (1,693) R million 15,000 (293) (405) (35) 13,292 13,000 12,325 11,000 9,000 7,000 5,000 2007 Price Exchange Tax Sales Cost Inflation Associates Amortisation Interest 2008 volume & minorities 10 2008 Annual results
Headline earnings - price variance Exchange rate weaker: 25,000 Ave 2008 – R8.08/$1 (5,221) 1,981 Ave 2007 – R7.04/$1 23,000 4,975 21,000 Pt $ price up 20.6% 19,000 (2,055) Rh $ price up 19.1% 17,000 Ni $ price down 42.5% 3,713 (1,693) R million 15,000 (293) (405) (35) 13,292 13,000 12,325 11,000 9,000 7,000 5,000 2007 Price Exchange Tax Sales Cost Inflation Associates Amortisation Interest 2008 volume & minorities 11 2008 Annual results
Platinum basket price Market price movement from 2007 to 2009 40,000 35,000 R and basket price per Pt ounce 30,000 25,000 20,000 R20,780 R24,798 $2,906 $3,040 15,000 10,000 R29,848 R20,215 $3,813 $2,268 5,000 2009 H1 2008 H2 2008 2007 - 12 2008 Annual results
Tax variance Reduced taxation contributed to increased headline earnings 7,000 6,656 (877) 6,500 - 6,000 (462) - 5,500 (329) 518 illion (518) 5,000 R m 5,779 4,470 4,500 4,000 4,470 3,500 3,000 321 2007 STC election on AA Lower SA tax rate Lower SA STC tax Other 2008 96 plc dividend rate of 10% 13 2008 Annual results
Headline Earnings - volume and cost variance 25,000 Pt – R2.0bn 1,981 (5,221) Rh – R1.3bn 23,000 4,975 Other – R1.9bn Metal Purch. R2.2bn 21,000 Labour R511m 19,000 (2,055) Process material R343m 17,000 Positive stock movement 3,713 (1,693) R million kof (R1.8bn) 15,000 (293) (405) (35) 13,292 13,000 12,325 11,000 9,000 7,000 5,000 2007 Price Exchange Tax Sales Cost Inflation Associates Amortisation Interest 2008 volume & minorities 14 2008 Annual results
Operating unit costs CPI = 11.4% 50% Labour = 2.3% Higher UG2 45% Commodities = 4.4% Contractors = 3.1% 40% Sundries = 2.9% 6.5% 35.6% 35% Utilities = 2.5% 2.9% 30% 26.6% 0.4% % Increase 25% 20% 15% Increased volumes offset by grade & recovery reductions 10% 5% 0% CPI & escalation Efficiency improvements Mogalakwena Grade & Recovery R / Eq refined Pt oz 15 2008 Annual results
2008 operating margins Group average excluding KPM 58% 60% MOT AS purchased metal: 44% BRPM 53% 56% 46% 55% Group average US 50% WLTR including purchased 43% 50% A metal: 37% S 4, 45% 1 % LPM 40% RS 32% 36% 35% MDK Operating margin % 29% MOG 30% 29% 25% 20% 15% Purchased MAR Metal 12% 11% 10% 5% 0% - 239 478 717 956 1,195 1,434 1,673 1,912 2,151 2,390 Refined production ('000) 16 2008 Annual results
Net debt 20,000 19,243 (1,665) 15,000 (14,237) 10,000 5,000 R million (13,459) (4,086) (14,388) 0 - (5,000) (10,000) 85 1,759 (15,000) (20,000) Dec 2007 Cash from Tax & interest Dividends Capex Sale of Other Dec 2008 Net debt operations Investments Net debt 17 2008 Annual results
Balance sheet highlights Year ended 31 Dec R million 2008 2007 Change � 28% PPE & CWIP 46,571 36,258 � 58% Inventories 10,064 6,370 � Trade & other receivables 3,941 4,246 8% � 27% Deferred tax 11,101 8,748 � 21% Trade & other payables 4,956 4,105 � 229% Net debt 13,459 4,086 � 280% - Long term borrowings 10,313 2,713 � 11% - Short term borrowings 5,507 4,962 � 30% - Cash & cash equivalents 2,870 4,079 � 4% - Other borrowings 509 490 18 2008 Annual results
Capital management • Interim dividend of R35.00 declared per ordinary share • No final ordinary dividend • 1.6 dividend cover for the full year (2007: 1.0) • Year end net debt of R13.5 billion (2007: R4.1bn) • Long term debt R10.3 billion (2007: R2.7bn) • Committed debt facilities of R26 billion (2007: R16bn) 19 2008 Annual results
2008 Annual results Markets and outlook Neville Nicolau 20
Platinum market - price 35,000 2,400 2,200 32,500 2,000 30,000 Rand basket price per Pt ounce 1,800 $ Pt spot market price 27,500 1,600 1,400 25,000 1,200 22,500 1,000 20,000 800 600 17,500 400 H1 2008 H2 2008 2009 2007 15,000 200 12,500 0 Rand basket price $ Pt spot price 21 2008 Annual results
Speculative investment • Massive long liquidation – downside overcorrection – 2009 sentiment up NET POSITION OF PLATINUM SPECULATORS (oz ') ($/oz ) 1,600,000 2300 2200 1,400,000 2100 2000 1,200,000 1900 1800 1,000,000 1700 1600 800,000 1500 1400 600,000 1300 1200 400,000 1100 1000 200,000 900 800 0 700 Apr '07 Dec '07 Dec '08 NYMEX Tocom EFTS Price ETFs 22 2008 Annual results
Platinum market - strong fundamentals Vehicle sales (million ) • Vehicle volumes down 2006 2007 2008 Rest of world 16.5 18.9 19.6 • North America sales down 18% from China 7.3 9.0 9.8 North America 14.2 13.4 11.0 2007 to 2008 Japan 10.7 10.7 10.8 Europe 20.1 21.2 20.5 • Total sales down 2% from 2007 to 2008 Shanghai Gold Exchange – Platinum volumes 2,500 • But positive response from jewellery and 2,000 investment 1,500 • Investment bar sales in Japan up 400% 1,000 500 0 l r r e y g p t v c r r n g p t v c 7 b y 8 b y u a p l c o a p u c o e a n u e e e a J u e e 0 A u 0 A M u O N D M J O N D F M J A S F M A S n J n a a J J SGE 6 month ave Average JM base price 23 2008 Annual results
Platinum market - supply down Platinum Supply - Anglo Platinum estimates 2006 2007 2008 South Africa 5,295 5,032 4,710 Rest of world 1,535 1,530 1,368 TOTAL 6,830 6,562 6,078 • 2008 supply / demand deficit over full year • 2009 South African production declining or flat • Impact of capex and workforce reductions on future production 24 2008 Annual results
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