Anglo American : Annual Report and Financial Statements for the year ended 31 December 2022

Integrated Annual Report 2022

Re-imagining mining to improve people's lives

Overview

Strategic Report

plcIntegrated Annual Report 2022

Transforming the very nature of mining for a safer, smarter, more sustainable future.

Using more precise technologies, less energy and less water, we aim to reduce our environmental footprint for every ounce, carat and kilogram of precious metal or mineral.

We are combining smart innovation with the utmost consideration for our people, their families, local communities, our customers, and the world at large - to better connect precious resources in the ground to all of us who need and value them.

And we are working together to develop better jobs, better education and better businesses, building brighter and healthier futures around our operations in host communities and ultimately for billions of people around the world who depend on our products every day.

Our metals and minerals help unlock a cleaner future for our planet and meet the needs of a growing population, from homes and electronics, to food and luxuries - these are future-enabling products.

Revenue						Underlying EBITDA◊	Operating profit
$35.1 bn	$14.5 bn	$9.2 bn
2022					$35.1 bn	2022				$14.5 bn	2022				$9.2 bn
2021							$41.6 bn	2021						$20.6 bn	2021							$17.6 bn
Underlying earnings per share◊	Profit attributable to equity shareholders	Net debt◊
$4.97						$4.5 bn	$6.9 bn
2022				$4.97			2022			$4.5 bn	2022							$6.9 bn
2021							$7.22	2021						$8.6 bn	2021				$3.8 bn
Total dividends per share	Attributable free cash flow◊	Group attributable ROCE◊
$1.98						$1.6 bn	30%
2022			$1.98		$4.19	2022		$1.6 bn	2022					30%
2021						2021						$7.8 bn	2021					43%
Number of fatalities	Total recordable injury frequency rate (TRIFR)	Level 4-5 environmental incidents

Anglo American

Cover image

Business intelligence analyst Janeth Fabian Chavez, at Quellaveco copper mine in Peru, consults the Work Execution Platform app on her mobile phone. The app - developed internally - makes it faster and simpler for frontline mine workers to execute work orders, raise work requests and conduct operation checklists on site.

2			2.19			0
2022		2	2022		2.19	2022	0
2021		2	2021			2.24	2021	0

• Alternative Performance Measures
  Words with this symbol ◊ are defined in the Alternative Performance Measures section of the Integrated Annual Report on pages 310-315.

Contents

Strategic Report

02	Our business at a glance
04	Chairman's statement
06	Chief Executive's statement
08	Our business model
09	Our value chain
10	Purpose to value
11	Creating value for our stakeholders
14	How we make decisions
16	Understanding our stakeholders
20	Our material matters
22	Looking at global trends
25	Reflecting stakeholder views
	in our Board decision making
26	Key decisions made in 2022
28	Strategy: portfolio
36	Strategy: innovation

140 Board visits

1. Stakeholder engagement

1. Sustainability Committee report

1. Nomination Committee report

1. Audit Committee report

1. Directors' remuneration report

1. At a glance

1. Directors' remuneration policy

1. Annual report on directors' remuneration

1. Statement of directors' responsibilities

Financial statements and other financial information

206	Independent auditors' report
214	Primary statements
218	Notes to the financial statements
296	Financial statements of the
	Parent Company

Our reporting suite	Social channels
	AngloAmerican
	@angloamerican
	angloamericanplc
You can find this report and others, including the	angloamerican
Sustainability Report, the Climate Change Report, our Tax
and Economic Contribution Report, and the Ore Reserves	Anglo American
and Mineral Resources Report, on our corporate website.

• For more information, visit:angloamerican.com/investors/annual-reporting

56	Strategy: people
64	Capital allocation
67	Managing risk effectively
74	Key performance indicators
78	Marketplace review
80	Group financial review
84	De Beers
88	Base Metals
95	Platinum Group Metals (PGMs)
99	Bulk Commodities
108	Crop Nutrients
111	Corporate and other
112	Non-financial information
	disclosures and footnotes
114	Disclosures related to the
	recommendations of the TCFD
120	Streamlined energy and
	carbon reporting

Governance

1. Chairman's introduction

1. Directors

1. Executive management

1. Board roles and responsibilities

1. Board operations

1. Board activity

1. Board effectiveness in 2022

299	Summary by operation
301	Key financial data
302	Exchange rates and commodity prices

Ore Reserves and Mineral Resources

1. Estimated Ore Reserves

1. Estimated Mineral Resources

Other information

308 Glossary of terms

1. Alternative performance measures

1. Production statistics

1. Quarterly production statistics
2. Non-financialdata

1. Directors' report

1. Shareholder information
2. Other Anglo American publications and legal disclaimers

The Strategic Report forms part of the Anglo American plc Integrated Annual Report for the year ended

31 December 2022 and should be read in conjunction with the Governance section and Financial Statements of the Integrated Annual Report.

Basis of reporting

The Anglo American plc Integrated Annual Report for the year ended 31 December 2022 is produced in compliance with UK regulations. Additionally, we have compiled this report using the Guiding Principles and Content Elements set out in the International Integrated Reporting Council's Framework.

Integrated Reporting aims to demonstrate how companies create value sustainably over time, for a range of stakeholders - consistent with Anglo American's Purpose, business approach and strategy. This report, therefore, includes a comprehensive overview of our material matters, in the eyes of our stakeholders, and the impact these matters have on the value we create.

Measuring performance

Throughout the Strategic Report we use a range of financial and non-financial measures to assess our performance. A number of the financial measures are not defined under IFRS so they are termed 'Alternative Performance Measures' (APMs). We have defined and explained the purpose of each of these measures

Non-Financial Information Disclosures

Non-financial information in this report includes subsidiaries and joint operations over which the Anglo American Group has management or acts as operator. It does not include independently managed operations, such as Collahuasi and Samancor,

nor does it include De Beers' non-managed joint operations in Namibia and Botswana, unless specifically stipulated.

on pages 310-315, where we provide more detail, including reconciliations to the closest equivalent measure under IFRS. These APMs should be considered in addition to, and not as a substitute for, or as superior to, measures of financial performance, financial position or cash flows reported in accordance with IFRS.

Units

'Tonnes' are metric tonnes, 'Mt' denotes million tonnes, 'kt' denotes thousand tonnes, 'Mct' denotes million carats and 'koz' denotes thousand ounces; '$' and 'dollars' denote US dollars and 'cents' denotes US cents.

Forward-looking statements, third-party information and Group terminology

This document includes references to the

Anglo American Group, forward-looking statements and third-party information. For information regarding the Anglo American Group, forward-looking statements and such third-party information, please refer to the IBC of this document.

We comply with all relevant non-financial reporting requirements, including those contained in sections 414CA and 414CB of the Companies Act 2006; the Financial Stability Board's Task Force on Climate- related Financial Disclosures (TCFD); and the Streamlined Energy and Carbon Reporting (SECR) rules. The tables on pages 112 and 115-120

are intended to guide stakeholders to where the relevant non-financial information is included within our Strategic Report and other externally available Anglo American plc publications.

Anglo American plcIntegrated Annual Report 202201

business at a glance

Our business at a glance

Anglo American is a leading global mining company with a world class portfolio of mining and processing operations and undeveloped resources, providing tailored materials solutions for our customers, with more than 105,000 people working for us around the world.

Our

Strategic Report

Anglo American plcIntegrated Annual Report 2022

North America

850 employees(1)

$68 m wages and benefits paid(2) $34 m taxes and royalties(3) $141 m local procurement spend(4)

Peru

1,000 employees(1) $132 m wages and benefits paid(2) $43 m taxes and royalties(3) $1,218 m local procurement spend(4)

1 Canada

Product groups*
Diamonds
Copper	1 Peru
Nickel
Platinum Group Metals
Iron Ore	3 Chile
Steelmaking Coal
Manganese
Crop Nutrients

Brazil	Europe
4,000 employees(1)	3,000 employees(1)
$165 m wages and benefits paid(2)	$639 m wages and benefits paid(2)
$384 m taxes and royalties(3)	$383 m taxes and royalties(3)
$993 m local procurement spend(4)	$801 m local procurement spend(4)

	Chile		South Africa
	4,400 employees(1)		41,100 employees(1)
	$398 m wages and benefits paid(2)		$1,681 m wages and benefits paid(2)
	$1,044 m taxes and royalties(3)		$2,053 m taxes and royalties(3)
	$2,815 m local procurement spend(4)		$5,205 m local procurement spend(4)
	1
			United			Finland
			Kingdom

2 Botswana	Zimbabwe 1
2 Namibia

Singapore

Brazil 2 1

South Africa

1 2 5 1

Australia/Asia

3,000 employees(1) $517 m wages and benefits paid(2) $939 m taxes and royalties(3) $1,769 m local procurement spend(4)

Other Africa

6,650 employees(1)

$330 m wages and benefits paid(2) $1,013 m taxes and royalties(3) $631 m local procurement spend(4)

Shanghai

Australia 1 5

02

• Number within dot denotes number of operations, shown by product.

See page 113 for footnotes.

We provide many of the essential

metals and minerals that are fundamental to the transition to a low carbon economy and enabling a cleaner, greener, more sustainable world, as well as meeting the growing consumer-driven demands of the world's developed and maturing economies. And we do so in a way that not only generates sustainable returns for our shareholders, but that also strives to make a real and lasting positive contribution to society as a whole.

• Our overview video gives a complete introduction to what we do and our ambitions for the future
  See https://youtu.be/cYUz_h97X0A

• More detailed information and maps can be found in the business unit reviews
  See pages 84-111

				Base Metals
Diamonds		Copper		Nickel
$1,417 million		$2,182 million	$381 million
Underlying EBITDA◊		Underlying EBITDA◊	Underlying EBITDA◊
10%		15%			3%
Group underlying EBITDA◊		Group underlying EBITDA◊	Group underlying EBITDA◊
34.6 Mct		664 kt	39.8 kt
Production (100% basis)(5)		Production: Copper	Production: Nickel

				Bulk Commodities
	Iron Ore			Steelmaking Coal	Manganese
	$3,455 million	$2,749 million	$378 million
	Underlying EBITDA◊	Underlying EBITDA◊	Underlying EBITDA◊
24%	19%			3%
	Group underlying EBITDA◊	Group underlying EBITDA◊	Group underlying EBITDA◊
	37.7 Mt	15.0 Mt	3.7 Mt
	Production: Iron ore -	Production: Steelmaking	Production: Manganese ore
	Kumba	coal
	21.6 Mt
	Production: Iron ore
	- Minas-Rio

PGMs

$4,417 million

Underlying EBITDA◊

30%

Group underlying EBITDA◊

4,024 koz

Production: PGMs

Crop Nutrients

$(44) million

Underlying EBITDA◊

Woodsmith is a greenfield project

Corporate and other

$(440) million

Underlying EBITDA◊

Anglo American plcIntegrated Annual Report 202203