WorldReginfo - b9b4675a-8c34-4072-8076-3089309954ec - WorldReginfo ANGLO AMERICAN PLATINUM LIMITED PLATINUM AMERICAN ANGLO INTEGRATED REPORTINTEGRATED 2015 DRIVING CHANGE, DEFINING OUR FUTURE ANGLO AMERICAN PLATINUM LIMITED INTEGRATED REPORT 2015 DRIVING CHANGE, DEFINING OUR FUTURE At a time when the mining sector continues to face LIVING OUR VALUES considerable external challenges, we are demonstrating our ability to deliver on our clearly defined strategy. SAFETY We take personal accountability to ensure that we work By focusing on that which is within our control and and live safely establishing the foundations for long-term continuous CARE AND RESPECT We treat each other with respect and dignity in words improvement, we are beginning to see the positive outcomes and actions of our strategy. We are focused on shaping our business for INTEGRITY a sustainable future – driving the necessary change to We walk the talk – our actions are consistent with our become more robust, responsive and competitive. words ACCOUNTABILITY As we continue to focus our strategy on value and not Individual accountability drives team and business volume, we are repositioning our portfolio of assets and accountability exiting non-core assets, continuing to focus on market COLLABORATION We align and collaborate across functions to ensure growth opportunities while our operations aim to deliver collective high performance on their full potential. INNOVATION Innovation is key to our future and is a central part of our drive for sustainability Integrated report 1 2 3 Front cover images 1 Dr Judy Dlamini – Anglo American plc director, at 4 Mogalakwena North concentrator – new ore sorting plant. 4 6 Mogalakwena Mine. 5 Rope shovel risk assessment – Mogalakwena North pit 5 2 Underground – new technology in locomotives improves – Cut 8 – left to right – Christo Botha (supervisor), Carlos safety performance at Tumela 1 shaft. Guni (boilermaker) and Gerald Bosch (pit supervisor). INTEGRATED REPORT 2015 INTEGRATED REPORT 2015 DRIVING CHANGE, DRIVING CHANGE, DEFINING OUR FUTURE DEFINING OUR FUTURE 3 Water filtration – Mogalakwena North concentrator. 6 Priming charged blast holes in Mogalakwena North pit in preparation for blasting – Ernest Nkoana (junior mining ANGLO AMERICAN PLATINUM LIMITED ANGLO AMERICAN PLATINUM LIMITED engineer for AEL). 7 9 Back cover images 7 Willie van Loggerenberg at the Phoenix slurry pump, 10 Bathopele Mine – surface infrastructure – conveyors 10 Amandelbult concentrator. taking reef from Bathopele’s silo to concentrators. 8 11 8 View of Unki Mine concentrator float cell section – left is 11 Doing a pre-work assessment before operating a Pit Viper Wilfred Zikhali (general hand) and right is Eswell Gandiwa 351 drill rig are Elmond Lekota (mining engineering (milling team leader). graduate) and Elias Bambo (drill rig operator). Anglo American Platinum Limited Anglo American Platinum Limited Incorporated in the Republic of South Africa Incorporated in the Republic of South Africa Date of incorporation: 13 July 1946 Date of incorporation: 13 July 1946 Registration number: 1946/022452/06 Registration number: 1946/022452/06 JSE code: AMS – ISIN: ZAE000013181 JSE code: AMS – ISIN: ZAE000013181 www.angloamericanplatinum.com www.angloamericanplatinum.com A member of the Anglo American plc group A member of the Anglo American plc group www.angloamerican.com www.angloamerican.com 9 300-tonne haul trucks at Mogalakwena North pit. Find us on Facebook Find us on Facebook Follow us on Twitter Follow us on Twitter WorldReginfo - b9b4675a-8c34-4072-8076-3089309954ec OUR BUSINESS GROUP PERFORMANCE GROUP PERFORMANCE CONTENTS Our business Net debt Number of fatalities Our business 1 Group performance 2 Our approach to reporting 4 Material issues R 6 Chairman’s letter 12.8 bn 2 8 At a glance 10 Our history 2015 R12.8 bn 2015 2 12 Our board 14 Our executive committee 2014 R14.6 bn 2014 3 16 Our business model Headline earnings Total recordable case frequency Business context rate (TRCFR) 18 Operational flow chart 20 Our strategy journey R 22 Performance against strategic priorities 0.1 bn 1.52 24 Our external environment 28 Stakeholder expectations and issues 2015 R0.1 bn 2015 1.52 30 Our approach to risk management 33 Direct value added to South Africa 2014 R0.8 bn 2014 1.22 34 Chief executive officer’s review Headline earnings per share Energy consumption million GJ Performance review 38 Financial review 44 Five-year financial review R 46 Operations review 0.41 25.178 GJm 63 Process overview 66 Greenfield projects 2015 R0.41 2015 25.179 GJm 67 Ore reserves and mineral resources review 2014 R3.01 2014 22.633 GJm Governance Total capital expenditure Total new water use Mm3 70 Corporate governance report Committee reports 76 Audit and risk committee report 3 78 Social, ethics and R 33.192 Mm transformation committee report 5.2 bn 80 Nomination committee report 2015 R5.2 bn 2015 33.192 Mm3 81 Safety and sustainable development committee report 2014 R6.9 bn 2014 27.091 Mm3 84 Remuneration report EBITDA GHG emissions Financial review mt CO equivalent 100 Directors’ responsibilities and approval of 2 the annual financial statements 101 Company secretary’s certificate R 102 Summarised consolidated (1.5 bn) 5.878 kt financial statements 2015 R(1.5 bn) 2015 5.878 kt 103 Independent auditor’s report 104 Summarised consolidated 2014 R5.7 bn 2014 5.364 kt statement of comprehensive income 105 Summarised consolidated EBIT Cash generated by operations statement of financial position 106 Summarised consolidated statement of cash flows R R 107 Summarised consolidated (6.6 bn) 10.9 bn statement of changes in equity 108 Notes to the summarised 2015 R(6.6 bn) 2015 R10.9 bn consolidated financial statements 116 Analysis of shareholders 2014 R0.8 bn 2014 R7.9 bn Shareholder information 117 Notice of annual general meeting 121 Form of proxy 122 Notes 123 Summary of the rights established in terms of section 58 of the Act 124 Annual general meeting explanatory notes 127 Shareholders’ diary 128 Administration WorldReginfo - b9b4675a-8c34-4072-8076-3089309954ec Anglo American Platinum Limited Integrated Report 2015 1 OUR BUSINESS OUR APPROACH TO REPORTING OUR APPROACH TO REPORTING This integrated report is our primary communication to stakeholders. While it is prepared mainly for providers of capital and shareholders, financial information is balanced with commentary on our most material sustainability issues to present a holistic view of the company. REPORTING PRINCIPLES AND APPROACH Our integrated report is guided by the framework of the International Integrated Reporting Council (IIRC), published in December 2013. Specifically, our disclosure considers the guiding principles of this framework: CONSISTENCY AND STRATEGIC FOCUS ACCOUNTABILITY RELIABILITY AND CONNECTIVITY OF COMPARABILITY AND FUTURE Our leaders are COMPLETENESS INFORMATION Year-on-year ORIENTATION accountable for Our chief executive This report provides comparisons Insight on how our the company’s officer provides a holistic view of the demonstrate progress strategy influences our actions, and are the assurance that this company – including in achieving our ability to create value custodians of the report includes financial, operational strategic goals, in the short, medium Amplats governance all our material and non-financial although readers and long term. framework. The priorities in a balanced aspects. should note that 2014 leadership section on way, and without performance was For more information on page 70 details our material error. For more information on strategic focus and connectivity of information significantly impacted future orientation governance structures See page 3 by the strike in the first See pages 20 and 21 and the key issues For more information on reliability and completeness half which may distort they dealt with during See page 3 comparisons. the year. For more information on accountability See pages 70 to 74 This report covers the 12 months to 31 December 2015 and follows a similar report for the year to 31 December 2014. We also comply with the JSE Listings Requirements and principles set out in the King Code of Corporate for South Africa (King III). Our King III application register can be found on www.angloamericanplatinum.com/kingthree/register For corporate and compliance information, please see administration on page 128. Other sources of information You can find this report and additional information, including our sustainability performance in our sustainable development report, on our corporate website. For more information, please go to www.angloamericanplatinum.com/investors/annual-reporting/2015 WorldReginfo - b9b4675a-8c34-4072-8076-3089309954ec 2 Anglo American Platinum Limited Integrated Report 2015 Throughout this report, and in supplementary information on our website, we focus on the Our business relationships between factors, both external and internal, that enable Amplats to create value. ANNUAL FINANCIAL STATEMENTS REPORT CONTENT The audited annual financial statements present statutory and We define our material issues as those with the greatest real and regulatory information required by the company’s stock exchange potential impact – both positive and negative – on achieving our listings. business objectives. These may be related to our internal or external environments (page 24), significant risks and opportunities identified They are prepared in accordance with the International Financial in our integrated risk management process (page 30), or issues