COVER STORY HEADLINE EPS AND DPS EBITDA Los Bronces, at an altitude of more than US cents US$ billion 3,000 metres in the Andes, forms the 125 5 major part of a suite of copper operations 125 123 120 4.8 4.8 in Chile acquired in late 2002. The mine, ANGLO 4.7 4.6 114 which produces more than 200,000 tonnes 100 4 of copper a year, has enormous reserves and resources and considerable growth potential. 84 75 3 3.1 ANGLO AMERICAN PLC AMERICAN 50 2 54.0 20 Carlton House Terrace 47.5 49.0 51.0 London SW1Y 5AN 37.5 England 25 1 Telephone +44 (0)20 7698 8888 A WORLD OF 0 0 Fax +44 (0)20 7698 8500 99 00 01 02 03 99 00 01 02 03 Registered number 3564138 Headline earnings per share www.angloamerican.co.uk DIFFERENCE Dividends per share GEOGRAPHIC EARNINGS MIX GEOGRAPHIC ASSET MIX(1) % % 5 7 26 7 17 30 16 18 34 40 Europe Rest of Africa Europe Rest of Africa South Africa Australia and Asia South Africa Australia and Asia Americas Americas SHARE PRICE PERFORMANCE VS FTSE 100 POSITION IN THE FTSE 100 Indexed (May 99 = 100) FTSE 100 ranking 160 10 140 120 15 100 80 20 60 ANNUAL REVIEW 2003 40 25 ACROSS SIX CONTINENTS 02 CHINA’S CENTURY 06 20 0 30 NEW PRODUCTS AND NEW IDEAS 08 SAFETY, 99 00 01 02 03 99 00 01 02 03 HEALTH AND ENVIRONMENT & CORPORATE SOCIAL Anglo American RESPONSIBILITY 12 CHAIRMAN’S STATEMENT 14 FTSE 100 CHIEF EXECUTIVE’S STATEMENT 16 OPERATIONS £100 invested in Anglo American at the time of its (1) Represents net attributable operating REVIEW 22 THE BOARD 26 BUSINESS UNIT HEADS 28 listing in May 1999 would at the end of 2003 be assets, including investment in associates worth £153* as compared with £71* if invested and joint ventures. SUMMARY FINANCIAL STATEMENT 30 in the FTSE 100 Index over the same period. *Excluding dividends COVER STORY HEADLINE EPS AND DPS EBITDA Los Bronces, at an altitude of more than US cents US$ billion 3,000 metres in the Andes, forms the 125 5 major part of a suite of copper operations 125 123 120 4.8 4.8 in Chile acquired in late 2002. The mine, ANGLO 4.7 4.6 114 which produces more than 200,000 tonnes 100 4 of copper a year, has enormous reserves and resources and considerable growth potential. 84 75 3 3.1 ANGLO AMERICAN PLC AMERICAN 50 2 54.0 20 Carlton House Terrace 47.5 49.0 51.0 London SW1Y 5AN 37.5 England 25 1 Telephone +44 (0)20 7698 8888 A WORLD OF 0 0 Fax +44 (0)20 7698 8500 99 00 01 02 03 99 00 01 02 03 Registered number 3564138 Headline earnings per share www.angloamerican.co.uk DIFFERENCE Dividends per share GEOGRAPHIC EARNINGS MIX GEOGRAPHIC ASSET MIX(1) % % 5 7 26 7 17 30 16 18 34 40 Europe Rest of Africa Europe Rest of Africa South Africa Australia and Asia South Africa Australia and Asia Americas Americas SHARE PRICE PERFORMANCE VS FTSE 100 POSITION IN THE FTSE 100 Indexed (May 99 = 100) FTSE 100 ranking 160 10 140 120 15 100 80 20 60 ANNUAL REVIEW 2003 40 25 ACROSS SIX CONTINENTS 02 CHINA’S CENTURY 06 20 0 30 NEW PRODUCTS AND NEW IDEAS 08 SAFETY, 99 00 01 02 03 99 00 01 02 03 HEALTH AND ENVIRONMENT & CORPORATE SOCIAL Anglo American RESPONSIBILITY 12 CHAIRMAN’S STATEMENT 14 FTSE 100 CHIEF EXECUTIVE’S STATEMENT 16 OPERATIONS £100 invested in Anglo American at the time of its (1) Represents net attributable operating REVIEW 22 THE BOARD 26 BUSINESS UNIT HEADS 28 listing in May 1999 would at the end of 2003 be assets, including investment in associates worth £153* as compared with £71* if invested and joint ventures. SUMMARY FINANCIAL STATEMENT 30 in the FTSE 100 Index over the same period. *Excluding dividends HEADLINE EARNINGS NET OPERATING ASSETS CAPITAL EXPENDITURE BY BUSINESS UNIT BY BUSINESS UNIT BY BUSINESS UNIT A SNAPSHOT OF % % % 6 12 6 16 21 22 10 20 OUR BUSINESSES 33 16 23 11 16 11 7 15 11 12 12 14 14 7 Platinum Gold Diamonds Coal Base Metals Industrial Minerals Paper and Packaging Ferrous Metals & Industries OUR BUSINESS PROFILEPRODUCTS AND USES STRATEGY SIGNIFICANT EVENTS DURING 2003 PLATINUM Anglo Platinum is the world leader in platinum Platinum is mainly used in jewellery and as Anglo Platinum plans to grow market demand for PGMs, expand supply Anglo Platinum has slowed down its expansion programme mainly due Ownership group metals (PGMs) and the world’s largest a component in autocatalysts. It is also used into that growth and optimise value in current operations. Principally to the strong rand/dollar exchange rate’s impact on cash generated 74.1% primary producer of platinum, accounting for in the chemical, electrical, medical, glass and through Johnson Matthey plc, Anglo Platinum has made significant from operations and project returns. Its long term strategy to expand about 40% of world production. petroleum industries. investments in research and development into new uses for PGMs. production to meet the growing market for PGMs remains in place. GOLD AngloGold produces approximately 6 million Gold is used primarily for fabrication and bullion AngloGold plans to secure the world’s best reserves and In August 2003, AngloGold announced a proposed merger with Ashanti Ownership ounces of gold a year. It has a global presence, investment. Fabricated gold has a variety of uses, to grow the company into the global gold equity of choice. Goldfields, bringing together the financial and technical resources 54.5% with 19 operations in eight countries, and plays a most obviously in jewellery but also in electronics, It is a leading exponent in expanding the market for gold. of AngloGold with the reserve base and growth potential of Ashanti vigorous role in the downstream marketing of gold. dentistry, medals and official coins. to create a combination strategically placed for sustained value growth. DIAMONDS* De Beers accounts for about 45% by value of global The vast majority of natural diamond production De Beers continues to drive demand for diamonds through its The Supplier of Choice initiative was launched in July 2003 and Ownership rough diamond production. Through The Diamond by value is gem quality rough that is sold for use in advertising and marketing focus on expanding diamonds’ share aims to stimulate consumer demand for diamond jewellery at 45% Trading Company, it is the world’s largest supplier jewellery, with some natural stones being used for of the luxury-goods sector. retail level by addressing the issues that have historically inhibited and marketer of gem diamonds. industrial purposes e.g. cutting and other applications. growth in the diamond business. COAL Anglo Coal is one of the world’s largest private sector About 40% of all electricity generated in the world Anglo Coal plans to maintain and grow a balanced and profitable In May 2003, Anglo American reached agreement with Sasol to Ownership coal producers and exporters, producing thermal is powered by coal. Coal is a key raw material for mix of metallurgical and thermal coal assets, supplying international develop the Kriel South coal reserves in South Africa. The coalfield 100% and metallurgical coals. It has mining operations in 70% of the world’s steel industry and an important markets in the Mediterranean-Atlantic and Indo-Pacific basins as is expected to yield an estimated 200 million tonnes of thermal coal South Africa, Australia, Colombia and Venezuela. fuel for other industries such as the cement sector. well as appropriate local customers. for supply to Sasol Synfuels over 20 years. BASE METALS Anglo Base Metals comprises copper, nickel, Copper is used primarily in wire and cable and Anglo Base’s strategy is to find, acquire, develop and operate The wholly owned Skorpion zinc mine and refinery in southern Ownership zinc and mineral sands operations and projects in also in brass tubing and pipes. Zinc is used long life, low cost assets. It aims to increase capital and operating Namibia was officially opened in September 2003. The mine will 100% South America, southern Africa, Ireland and Canada. predominantly in galvanising, and nickel mostly efficiency through continuous improvement and innovation in produce 150,000 tonnes per year of special high grade zinc and in the production of stainless steel. order to earn superior returns throughout the metal price cycle. will be one of the lowest cost zinc mines in the world. INDUSTRIAL Anglo Industrial Minerals is the no.1 UK producer Tarmac is involved in the production of crushed Tarmac’s strategy is to generate superior returns by growing the In 2003, its centenary year, Tarmac made ten acquisitions totalling MINERALS of aggregates and asphalt and a significant producer rock, sand and gravel, asphalt, concrete and mortar, margins in its business. This will be achieved through increased $100 million in the UK and continental Europe. The new phosphate Ownership of ready-mixed concrete. Its interests are principally concrete products, lime and cement. Copebrás is a focus on customer service, further cost control and productivity plant in Brazil was completed in February 2003 and was officially 100% in the UK, continental Europe and Brazil. Brazilian producer of phosphate fertilizers. improvements. opened in April 2003 by the Brazilian president ‘Lula’ da Silva. PAPER AND Anglo Paper and Packaging, operating under the The operations manufacture pulp, graphic papers, The focus is on converted paper and packaging products for Mondi acquired Bauernfeind’s corrugated paper and packaging business PACKAGING Mondi name, is an integrated paper and packaging packaging papers, board and converted packaging, industrial and consumer markets based upon highly efficient and Copamex’s industrial sack business (the latter subject to competition Ownership group with operations and interests in Europe, as well as solid wood products.