Anglo American : HALF YEAR FINANCIAL REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2022

HALF YEAR FINANCIAL REPORT

for the six months ended 30 June 2022

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28 July 2022

Anglo American Interim Results 2022

Portfolio quality supports underlying EBITDA of $8.7 billion

Financial highlights for the six months ended 30 June 2022

• Underlying EBITDA* of $8.7 billion
• Profit attributable to equity shareholders of $3.7 billion
• Net debt* of $4.9 billion (0.3 x annualised underlying EBITDA): cash generation partially offset by investment in asset resilience and growth
• $1.5 billion interim dividend, equal to $1.24 per share, consistent with our 40% payout policy
• Quellaveco commissioned on time and on budget: multi-decade new copper operation expected to produce 300,000 copper equivalent tonnes per year on average over first 10 years

Duncan Wanblad, Chief Executive of Anglo American, said: "Anglo American's differentiated combination of portfolio quality and growth optionality, underpinned by our operating model and innovation track record, continues to position us strongly through the current market volatility and longer term cycle. Our unwavering focus is on driving consistent performance across our operations - which starts with the safety and health of our employees - and progress towards our full suite of sustainability ambitions. As we progressed through the first half, we began to regain operational momentum while also adjusting to the considerable challenges posed by Covid-19 related absenteeism, disrupted supply chains and logistics corridors, weather extremes and geopolitically-led economic volatility.

"Against that backdrop, we generated underlying EBITDA of $8.7 billion in the first six months, our second highest for a half year, albeit a 28% decrease compared to the record first half of 2021. Attributable free cash flow of $1.6 billion was driven largely by strong prices in the first quarter that declined towards the end of the period in tandem with increasing cost inflation. Despite those headwinds and our operational challenges, in steelmaking coal and iron ore in particular, that reduced our planned production output, our return on capital employed of 36% stayed well above our targeted 15% through-the-cycle return and our mining EBITDA margin remained at a healthy 52%. Our commitment to capital discipline and to a strong and flexible balance sheet is paramount to remain resilient to the external environment and retain optionality for value-adding growth. At the end of June, net debt of $4.9 billion, or 0.3 x annualised underlying EBITDA, reflects the cash generation of the business, partially offset by our investments in our existing assets and future growth. Our $1.5 billion interim dividend of $1.24 per share is in line with our 40% payout policy.

"We continue to make progress on our long term safety journey. There is no doubt, however, that the operational changes necessary to help protect the health of our employees during the last two years require us to apply additional targeted effort to regain our momentum of continuous improvement. I am also sad to report that we lost one colleague in March in an equipment lifting incident in Australia. It is simply unacceptable to lose a life at work and we are determined to eliminate workplace fatalities once and for all. This is my number one priority.

"Looking ahead, growing the value of our business by progressing asset development options is the foundation of our organic margin-enhancing volume growth potential of 30%(1) over the next decade. More than a third of this growth comes from our newly commissioned Quellaveco copper operation. With our customer proposition almost entirely oriented around future-enabling metals and minerals, we are well positioned to play a critical role in the decarbonisation of global energy and transport systems, alongside good progress in meeting our own ambitious emissions targets, thereby delivering enhanced value for our shareholders and stakeholders across society."

Six months ended	30 June 2022	30 June 2021	Change
US$ million, unless otherwise stated
Revenue	18,111	21,779	(17) %
Underlying EBITDA*	8,701	12,140	(28) %
Mining EBITDA margin*	52 %	61 %
Attributable free cash flow*	1,564	5,641	(72) %
Profit attributable to equity shareholders of the Company	3,680	5,188	(29) %
Basic underlying earnings per share* ($)	3.11	4.30	(28) %
Basic earnings per share ($)	3.03	4.18	(28) %
Interim dividend per share ($)	1.24	1.71	(27) %
Additional returns per share ($)	-	1.60
Total dividend and buyback per share ($)	1.24	3.31	(47) %
Group attributable ROCE*	36 %	49 %

Terms with this symbol * are defined as Alternative Performance Measures (APMs). For more information, refer to page 86.

1. Copper equivalent volume growth vs. 2021 copper equivalent production.

Anglo American plc Press Release 2022

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Anglo American Interim Results

Sustainability performance

Key sustainability performance indicators(1)

Anglo American tracks its strategic progress using KPIs that are based on our seven pillars of value: safety and health, environment, socio-political, people, production, cost, and financial. In addition to the financial performance set out above and our operational performance on pages 6-39, our performance for the first four pillars is set out below:

			30 June 2021(2)		Target
Pillar of value	Metric	30 June 2022	Target	achieved
Safety and	Work-related fatal injuries(3)	1	0	Zero	Not
health					achieved
	Total recordable injury	2.36	2.34	Year-on-year reduction	Not
	frequency rate per million				achieved
	hours(3)
	New cases of occupational	0	8	Year-on-year reduction	On track
	disease
	Employees potentially exposed	17,944	18,983	Year-on-year reduction	On track
	to noise over 85 dBA(4)(5)
	Employees potentially exposed	1,090	827	5% reduction year-on-year	Not
	to inhalable hazards over the				achieved
	occupational exposure limit
	(4)(5)
Environment	Energy consumption	32.7	35.3	Improve energy efficiency	On track
	(million GJ)(5)			by 30% by 2030
	GHG emissions - Scopes 1 & 2	5.0	6.3	Reduce absolute GHG	On track
	(Mt CO2e)(5)			emissions by 30% by 2030
	Freshwater withdrawals	12.5	15.7	Reduce freshwater	On track
	(million m3)(5)(6)			abstraction in water scarce
				areas by 50% by 2030
	Level 4-5 environmental	0	0	Zero	On track
	incidents(5)
Socio-	Social Way 3.0	49 %	23 %	Full compliance with Social	Behind
political	implementation(7)(8)			Way 3.0 by end 2022	schedule
	Local procurement spend	6.1	5.9
	($bn)(9)
	Taxes and royalties ($m)(10)	3,491	3,303
	Jobs supported by Enterprise	147,374	137,777
	and Supplier Development
	(ESD) initiatives(7)(11)
People	Women in management	31 %	28 %	To achieve 33% by 2023	On track
	Women in the workforce	24 %	23 %
	Voluntary labour turnover	2.3 %	2.5 %	< 5%	On track

1. Sustainability performance indicators for the six months to 30 June 2022, and the comparative period, are not externally assured, unless otherwise stated.
2. 2021 data includes Thermal Coal South Africa until the date of the Thungela demerger on 4 June 2021, unless otherwise stated.
3. Prior period safety data is externally assured and includes data for the six months to 30 June 2021. The TRIFR presented for H1 2021 has been restated to reflect the final 2021 externally assured safety statistics.
4. Reflects the number of employees who work in environments where there is potential for exposure above the exposure limit. All employees working in such environments are issued with protective equipment to prevent occupational illness. Prior period data excludes Thermal Coal South Africa.
5. Energy, GHG emissions and water-withdrawal data for the current period and prior period is shown to end of May. Occupational exposure data for the current period is to the end of May 2022, and to the end of June for the prior period. Energy, GHG emissions, occupational exposure, and Level 4-5 environmental incidents data for the prior period is externally assured.
6. Water metric and data have been revised in line with our freshwater definition. Data represents total Group water withdrawals.

• Anglo American plc Press Release 2022

Anglo American Interim Results	Sustainability Performance

1. Data presented for the years ended 31 December 2021 and 2020.
2. While sites are assessed annually against all requirements applicable to their context, for consistency during the transition period, the metric reflects performance against the Social Way foundational requirements. For further information on progress, see page 4.
3. Local procurement spend relates to spend within the country where an operation is located. The basis of calculation has been amended to more closely reflect the Group's financial accounting consolidation, i.e. 100% of subsidiaries and a proportionate share of joint operations, based on Anglo American's shareholding. The prior period comparative has been restated to reflect the new basis of preparation.
4. Taxes and royalties include all taxes and royalties both borne and collected by the Group. This includes corporate income taxes, withholding taxes, mining taxes and royalties, employee taxes and social security contributions and other taxes, levies and duties directly incurred by the Group, as well as taxes incurred by other parties (e.g. customers and employees) but collected and paid by the Group on their behalf. Figures disclosed are based on cash remitted, net of entities consolidated for accounting purposes, plus a proportionate share, based on the percentage shareholding, of joint operations. Taxes borne and collected by associates and joint ventures are not included. Prior year comparatives have been restated.
5. Includes the following enterprise development programmes: Crescer (Brazil), Emerge Chile (Chile), Emerge Peru (Peru), Takura (Zimbabwe), Tokafala (Botswana) and Zimele (South Africa). Data refers to the cumulative number of businesses and jobs supported since programme inception.

Safety

Anglo American's most important priority is always safety - keeping our colleagues safe and well. Making sure every employee returns home at the end of each day, better for having worked at Anglo American, is our vision for safety and health across the business. We continue to make progress on our long term safety journey, including further developing our broader safety processes and procedures. Sadly, however, we lost one colleague at a managed operation in a fatal incident in Australia and one colleague at an independently managed joint venture operation in South Africa in the first half of the year. We are unconditional about safety, and we will not rest until zero harm is achieved and sustained across our business. We have shown it can be done for long stretches of time and now we must make it permanent. Everyone is a leader in safety and has a role to play in delivering an injury-free and fatality- free workplace.

Our Elimination of Fatalities Taskforce has, since 2018, supported a 93% reduction in fatal incidents over the last decade. The core programme is 82% complete with a material focus on Supply Chain Safety, Contractor Management, and Fatigue Management.

Our total injury frequency rate tracked up marginally again, after multiple years of progressive improvement, reflecting the changed operating configurations necessary to manage Covid-19 that tend to disrupt planned work routines. To stop, reflect and stand up for safety, all business units participated in a people-focused Global Safety Reset during April and May, led by supervisors. Significant focus is also being placed on leading indicators, specifically, increased high potential hazard (HPH) reporting, on-time investigations and action management, rigorous critical-control monitoring, and people-centric technology implementation.

Health

Our health focus remains on helping keep our people protected from Covid-19, while sustaining our work to continuously improve our key health measures. The pandemic is continuing to challenge us but, encouragingly, although case rates remain high in many places, a combination of less severe variants and much higher levels of vaccination (particularly in our organisation) has helped to keep hospitalisation and death rates far lower than in previous phases. We have also provided significant monetary and other support to accelerate vaccination rates, using our own health facilities and encouraging vaccination at the earliest opportunity, including in many host communities.

Recognising the link between employee health and broader community well-being, last year we completed community health improvement strategies for our operations in support of our Sustainable Mining Plan targets. Building on our extensive Covid-19 support, implementation of these strategies will start later this year.

We tackle the threats to health and well-being wherever we find them, with separate programmes for physical and mental health - including our Living with Dignity programme to help tackle gender-based and domestic violence; for creating a healthier working environment; and for encouraging healthy lifestyles. We are paying greater attention to psychological safety, intrinsic to embedding a safety-conscious mindset, establishing a steering group to investigate psychological safety issues, while also introducing the thinking into an array of other programmes.

People

Tightly linked to our safety imperative and our Values, we strive to create a workplace that places people even more at its heart. People are central to everything we do, and each individual has expectations of us. Workforce engagement is a priority for every leader at Anglo American and we aim to create safe, inclusive and diverse workplaces that encourage high performance and innovative thinking. We have zero tolerance for any form of bullying, harassment or victimisation and we know there is no room for complacency when it comes to culture in any

Anglo American plc Press Release 2022

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