Anglo American Platinum Limited Bank of America Merrill Lynch’s 12 th annual Sun city conference March 2011
DISCLAIMER: CERTAIN FORWARD-LOOKING STATEMENTS Certain statements made in this presentation constitute forward-looking statements. Forward-looking statements are typically identified by the use of forward-looking terminology such as 'believes', 'expects', 'may', 'will', 'could', 'should', 'intends', 'estimates', 'plans', 'assumes' or 'anticipates' or the negative thereof or other variations thereon or comparable terminology, or by discussions of, e.g. future plans, present or future events, or strategy that involve risks and uncertainties. Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's control and all of which are based on the Company's current beliefs and expectations about future events. Such statements are based on current expectations and, by their nature, are subject to a number of risks and uncertainties that could cause actual results and performance to differ materially from any expected future results or performance, expressed or implied, by the forward-looking statement. No assurance can be given that such future results will be achieved; actual events or results may differ materially as a result of risks and uncertainties facing the Company and its subsidiaries. The forward-looking statements contained in this presentation speak only as of the date of this presentation and the Company undertakes no duty to, and will not necessarily, update any of them in light of new information or future events, except to the extent required by applicable law or regulation.
PLATINUM AGENDA • Market overview – Analysis of recent changes in realised basket price – Global platinum demand update - autocatalyst – Global platinum demand update – jewellery – Global platinum demand update - ETFs – Snapshot of platinum demand and supply – Snapshot of palladium demand and supply • Company overview – Strategy – Anglo Platinum at a glance – Safety performance profile – Cost management initiatives – Summary of FY10 performance – Capex analysis – 2011 outlook • Conclusion
PLATINUM MARKET OVERVIEW
MARKET OVERVIEW Realised basket price continuing to strengthen • Platinum price achieved by Angloplat in FY10 averaged US$1611/oz, up 34% year on year • Average spot platinum price increased from US$1,562/oz in FY10 YTD to US$1,797/oz in FY11 YTD*, +15% year on year • Realised average rand platinum basket price increased to R18,159, +29% year on year Anglo Platinum’s realised basket price Spot platinum price 22000 22000 1900 20000 20000 1700 Rand basket price Rand basket price 18000 18000 1500 US$/oz 16000 16000 1300 14000 14000 1100 900 12000 12000 700 10000 10000 Feb-09 Feb-09 May-09 May-09 Aug-09 Aug-09 Nov-09 Nov-09 Feb-10 Feb-10 May-10 May-10 Aug-10 Aug-10 Nov-10 Nov-10 Jan-09 Jun-09 Nov-09 Apr-10 Sep-10 Feb-11 ZAR basket price ZAR basket price FY09 average basket price FY09 average basket price FY10 average basket price FY10 average basket price Platinum spot FY09 average platinum spot FY10 average platinum spot FY10 YTD FY11 YTD 5 Source: Johnson Matthey and Anglo Platinum * YTD prices refer to prices up to 23 March 2011
MARKET OVERVIEW Autocatalyst demand recovering: Net demand for platinum up 39% in 2010 • Global light duty vehicle sales increased to c.70 million Split of gross autocataytic platinum demand 4500 4500 by region units in 2010, c.14% higher year on year 4000 4000 • Global light duty vehicle production increased from 59 3500 3500 million in 2009 to c.73 million units in 2010 3000 3000 • In Europe, diesel proportion of sales increased to 50% in 2500 2500 koz koz 15% 15% 15% 15% 17% 17% 2010, driven by increased fleet purchases 2000 2000 18% 18% • US vehicle inventories returned to historic averages of 67 1500 1500 18% 18% days in 2010 1000 1000 500 500 • Global Insight expects light duty vehicles production to 0 0 increase from 73 million units in 2010 to 96 million in 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2015, CAGR of 6% between 2011 and 2015 Europe Europe Japan Japan NA NA China China ROW ROW Global light duty vehicle production forecast Regional diesel share of light duty vehicle production Diesel vehicle production (m) 120 25 Total vehicle production (m) 60 Diesel market share (%) 100 50 20 40 80 15 30 60 10 20 40 10 5 20 Total Light Duty Vehicle Production Total Light Duty Diesel Vehicle Production Europe Japan China North Rest of World - - America 2005 2007 2009 2011 2013 2015 2017 2019 6 2010 2013 Source: Global Insight and Johnson Matthey
MARKET OVERVIEW Platinum jewellery demand remain resilient Split of gross platinum jewellery demand by region • Jewellery market remained resilient: 1.68m ounces of 3000 3000 demand in 2010 • China: 68% of gross platinum jewellery demand, 2500 2500 despite c.21% decline in 2010 due to higher metal price 2000 2000 • Recent decline in platinum price provided buying 74% 74% 48% 48% koz koz 51% 51% 68% 68% 1500 1500 51% 51% opportunity for Chinese jewellery market • Japan:14% of platinum jewellery demand, gross 1000 1000 demand remained largely flat in 2010 500 500 27% 27% 26% 26% 26% 26% 12% 12% 14% 14% • RoW: Steady demand growth supported by improved 0 0 world economic conditions. Jewellery development 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 program in India is starting to yield results Europe Europe Japan Japan NA NA China China ROW ROW SGE average daily trade Shanghai Pt Retail Price and Margins (monthly average) 200 600 180 550 160 500 RMB per gram 450 140 400 120 350 Kg 100 300 80 250 60 200 40 150 20 100 50 0 Jan-08 Jun-08 Nov-08 Apr-09 Sep-09 Feb-10 Jul-10 Dec-10 Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan -99 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 7 Monthly average volume Average Shanghai Price RMB/gram Average JM Base Price RMB/gram Source: SGE, Johnson Matthey
MARKET OVERVIEW Stronger investment demand reflects positively on the outlook • Investor inflows into ETFs remain robust despite recent decline in platinum and palladium price • Total ETF holdings of platinum and palladium at 1.4moz and 2.2moz, respectively, as at 21 March 2011 • Physical platinum held in custody for ETFs declined by a mere 3% following the Japanese earthquake – Palladium holdings declined by 5% over the same period Platinum ETF positions Palladium ETF positions ETC ZKB US ETC JB US$/oz ETC ZKB US ETC JB US$/oz 1,750,000 2,500 2,500,000 1,000 Palladium ETF ounces 1,500,000 Platinum ETF ounces 2,000 2,000,000 800 1,250,000 1,500 1,000,000 1,500,000 600 750,000 1,000 1,000,000 400 500,000 500 500,000 200 250,000 0 0 0 0 8 Source: ZBK, ETF Securities, Julius Baer and Renaissance BJM
MARKET OVERVIEW Snapshot of platinum demand and supply Global platinum supply by region • Expect platinum market to be in balance in 2011 due to 8000 8000 continued strength from autocatalyst and industrial demand, 7000 7000 resilient jewellery markets and continued investor interest 6000 6000 • Anticipate growth from the autocatalyst sector due to 5000 5000 improved recovery in Western markets and continued koz koz 4000 4000 strong growth from BRIC countries 3000 3000 • Jewellery demand to remain healthy due to continued 78% 78% 77% 77% 77% 77% 76% 76% 76% 76% penetration in China and India (in the longer term) 2000 2000 • Other industrial demand should also see robust growth, with 1000 1000 strong increases in demand from the electronics and glass 0 0 manufacturing sectors 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 South Africa South Africa Russia Russia NA NA Zimbabwe Zimbabwe Others Others • ETF demand will remain a key underpin Global platinum demand by region Global platinum demand by application 8000 8000 10000 10000 9000 9000 7000 7000 8000 8000 6000 6000 7000 7000 5000 5000 6000 6000 4000 4000 koz koz 22% 22% 25% 25% 5000 5000 koz koz 22% 22% 3000 3000 4000 4000 29% 29% 16% 16% 22% 22% 42% 42% 17% 17% 3000 3000 2000 2000 15% 15% 48% 48% 15% 15% 47% 47% 41% 41% 2000 2000 1000 1000 33% 33% 25% 25% 1000 1000 0 0 0 0 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 -1000 -1000 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 9 Autocatalyst Autocatalyst Jewellery Jewellery Chemical Chemical Other industrial Other industrial Investment Investment Europe Europe Japan Japan NA NA China China ROW ROW Source: Johnson Matthey
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