REVIEWED GROUP INTERIM RESULTS For the twelve months ended 30 June 2004 PRESENTATION 2004 HARNESSING THE POWER OF THE EARTH .

REVIEWED GROUP INTERIM RESULTSFor the twelve months ended 30 June 2004

PRESENTATION 2004

HARNESSING THE POWER OF THE EARTH

www.kumbaresources.com

2

CON FAUCONNIERCHIEF EXECUTIVE

HARNESSING THE POWER OF THE EARTH

3

178152

82

207

112 113

FY02 FY03 12M04

1H 2H

KEY FINANCIALS

Revenue R8 454m

Net operating profit

R1 101m

Headline earnings R580m

Headline earnings (cps)

194.6

Interim dividend (cps)

35

Headline EPS (cps)385

264

195

Stronger second half

4

HIGHLIGHTS

• Record safety performance

• Good progress on HIV / AIDS programme

• Solid operating performance from all businesses

• Strong US$ commodity prices… but

Pleasing safety performance

5

RAND IMPACT

Continued Rand strength (24% appreciation y-o-y) mitigated by:

• Strong sales volumes

• Good hedging policy – contributing R81m

• Business improvement programme

Continued impact by strong Rand

4

5

6

7

8

9

10

11

12

13

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

R/US$ AU$/US$

9.01

6.86

(average realised)

2H02 1H03 2H03 1H04 2H04

6

BUSINESS IMPROVEMENT PROGRAMME

• To maintain an attractive return in a prolonged strong rand environment

• R800m EBIT contribution

• Cost and revenue focus

• Shared services optimisation

• Programme

• Detailed planning - 2004

• All improvements implemented during 2005

• Full financial benefits in 2006

Crucial in strong Rand environment

7

MIKE KILBRIDEEXECUTIVE DIRECTOR OPERATIONS

HARNESSING THE POWER OF THE EARTH

8

SAFETY & ENVIRONMENT

Safety

• Fatalities at all time low

• Lost Day Injury Frequency Rate (LDIFR) at record low level

Environment

• Environmental management programmes approved for all operations

ISO Certification

• 4 Business units certified ISO 14001

• 3 Business units certified OSHAS 18001

• All operations by December 2004

Zero tolerance… key focus

Fatalities

LDIFR

64

8

4

1

FY00 FY01 FY02 FY03 12M04

3.47 3.133.55

4.59

2.3

FY00 FY01 FY02 FY03 12M04

9

IRON ORE MARKETS

• Strong growth in global blast furnace output

• Continued growth in Chinese imports of iron ore (148 Mt last year)

• Price increase of 18.6% effective 1 April 2004

Global blast furnace output

Source: AME

0

200

400

600

800

1999 2001 2003 2005f

Mt

EU 15 China Japan Other

Kumba well positioned for blast furnace demand

10

IRON ORE OPERATIONS

• Total production exceeds 30 Mt

• New record at Sishen - 27.5 Mt

• Exports influenced by stock build-up

• Strong domestic sales

Continued growth in iron ore output

Total production and exports

8

10

12

14

16

1H02 2H02 1H03 2H03 1H04 2H04

Mt

Export sales Production

11

0

5

10

15

1H02 2H02 1H03 2H03 1H04 2H04

Mt

Kumba Other

IRON ORE EXPORT CHANNEL

• Record tonnage railed of 21.9 Mt

• Port expansion on track for completion by end of 2005

• Negotiations underway for further 12 Mtpa expansion by 2008

Sishen-Saldanha rail performance

Infrastructure expansion is key to future growth

12

COAL MARKETS

• Total sales to Eskom - 14.4 Mt

• Record sales to Matimba - 13.9 Mt

• Strong domestic and international demand

Thermal coal and coke prices (US$/t)

Sources: SA Coal Report, CRU

20

30

40

50

60

70

80

Ju

l 01

Jan

02

Jul 0

2

Jan

03

Jul 0

3

Jan

04

Jul 0

4

50

150

250

350

450

RBCT thermal coal FOB

Chinese market coke exports

13

COAL OPERATIONS

• Excellent safety results at each coal mine

• Total coal production exceeds 19 Mt

• Annual record production at Grootegeluk and Leeuwpan

Production volumes

5

6

7

8

9

10

1H02 2H02 1H03 2H03 1H04 2H04

Mt

Grootegeluk Leeuwpan

Tshikondeni

Solid operating performance at all mines

14

HEAVY MINERALS MARKETS

• Signs of recovery in pigment market

• Zircon, rutile and pig-iron in strong demand

• Titania slag market over-supplied

• First sales of slag and pig-iron

• Good sales of synthetic rutile

Zircon and pigment prices (US$/t)

Source: TZMI

360

380

400

420

440

460

480

Q4

01

Q2

02

Q4

02

Q2

03

Q4

03

1000

1200

1400

1600

1800

Zircon Pigment

15

• Excellent synthetic rutile and pigment production at Tiwest

• Good growth in slag and pig-iron production from SA operations

• Planned shut of furnace 2 for improvements and repair

Heavy minerals production

Good growth in production of key products

HEAVY MINERALS OPERATIONS

0

10

20

30

40

50

60

70

80

Rut

ile

Pig

men

t

Pig

-iron

Zirc

on

Syn

thet

icru

tile Sla

g

kt

1H 2H

16

ZINC MARKETS

• US$ zinc price recovery

• Depressed Rand price

• Low treatment charges prevail

Zinc metal price

Source: LME

Challenging market conditions persist

700

800

900

1000

1100

1200

1H022H02 1H03 2H031H04 2H04

US$/t

5000

6000

7000

8000

9000

10000R/t

17

BASE METALS OPERATING RESULTS

• Sustained record production at Rosh Pinah

• Chifeng refinery expansion on schedule

• Zincor metal production affected by concentrate quality

Zn metal

(kt)

Zn conc.

(kt)37 38 37

54 5467

1H02 2H02 1H03 2H03 1H04 2H04

Rosh Pinah

54 51 58 57 55 52

10 22

1H02 2H02 1H03 2H03 1H04 2H04

Zincor Chifeng

Refinery in China contributes to zinc metal output

18

INDUSTRIAL MINERALS

Dolomite sales

(Mt)

FeSi production

(t)• Good production levels maintained

• Solid financial contribution

0.66 0.650.67 0.65 0.66 0.67

1H02 2H02 1H03 2H03 1H04 2H04

19182415

2647 2671 28112703

1H02 2H02 1H03 2H03 1H04 2H04

19

DIRK VAN STADENEXECUTIVE DIRECTOR FINANCE

HARNESSING THE POWER OF THE EARTH

20

REVENUE

R million 12M04 FY03 % Change

Iron Ore 3 934 4 234 (7)

Coal 1 747 1 638 7)

Heavy Minerals - Ticor SA - Ticor Ltd

4021 189

312275

29)

Base Metals 1 087 892 22)

Industrial Minerals 87 78 12)

Other 8 40 (80)

Total 8 454 7 469 13)

R/US$ exchange rate realised 6.86 9.01

21

EBIT / MARGIN

12M04 FY03 % Change

Rm) (%) Rm) (%) (in Rand)

Iron Ore 673) 17 882) 21 (24)

Coal 310) 18 279) 17 11)

Heavy Minerals - Ticor SA - Ticor Ltd

(25)75) 6

24)38)

814 97)

Base Metals (45) (9)

Industrial Minerals 20) 23 21) 27 (5)

Other 93) (46)

Total EBIT 1 101) 13 1 189) 16 (7)

Total EBITDA 1 865) 1 744) 7)

22

EBIT COMPARISON

R million

Production cost

Sales growth and cost focus

1101251189 (67)192169(166)

262

975 (1082)

(240)(156)

1168

FY

03 E

BIT

Sal

es

Pric

e

Exc

hang

e ra

te

Infla

tion

Vol

ume

Dis

trib

utio

n co

st

Tic

or L

td

Cos

t sa

ving

s

Goo

dwill

"Cor

e" E

BIT

Non

-rec

urrin

g ite

ms

12M

04 E

BIT

23

CURRENCY IMPACT

R million 12M04 FY03

EBIT 1 101) 1 189)

Adjusted for:

Asset disposals (122) -)

Non-recurring items 189) -)

Price increases (809)

Unrealised translation loss/(gain) (7) 73)

Realised exchange rate impact 1 162)

Comparable EBIT 1514) 1 262)

Comparable EBIT margin 17) 17)

Rand appreciation reduces margin

24

EARNINGS

R million 12M04 FY03 % Change

EBIT 1 101) 1 189) (7)

Net financing cost (268) (244) (10)

Equity (loss)/income (29) 2)

Taxation (253) (229) (10)

Profit after taxation 551) 718) (23)

Minority interest (23)

Attributable earnings 528) 718) (26)

Attributable earnings per share (cents)

177) 242) (27)

Total dividend for the period 55 cps

25

HEADLINE EARNINGS

R million 12M04 FY03 % Change

Attributable earnings 528) 718) (26)

Post tax adjustments:

Impairment charges 98) 2)

Net surplus on asset disposals (103) (2)

Closure cost 24) -)

Goodwill and exceptionals 33) 66)

Headline earnings 580) 784) (26)

Headline earnings per share (cents) 195) 264) (26)

Average number of shares in issue (million)

298) 297)

HEPS 195 cps

26

CASHFLOW

R million 12M04 FY03

Opening net debt 2 374) 1 143)

Net cashflow from operating activities 818) 780

Net cash used in investing activities

New capacity (759) (1 122)

Other capital expenditure (314) (264)

Net impact of Ticor Ltd consolidation -) (559)

Asset disposals 208) 44)

Share issue 133) -)

Non cashflow movements 36) (110)

(Increase)/decrease in net debt 122) (1 231)

Closing net debt 2 252) 2 374)

Positive operational cashflow

27

RATIOS

12M04 FY03

Margin excluding captive arrangements

EBIT (%) 17 22

EBITDA (%) 25 28

Net financing cost cover

EBIT (times) 4.1 4.9

EBITDA (times) 7.0 7.1

Return on equity - attributable income (%) 11 15

Net debt / equity (%) 36 39

Solid financial metrics

28

CON FAUCONNIERCHIEF EXECUTIVE

HARNESSING THE POWER OF THE EARTH

29

STRATEGY

• Empowerment

• MPRDA - effective 1 May 2004 - Kumba well placed to conform

• Coordinating with Anglo on empowerment ownership process

• Iron ore growth

• Hope Downs

• Northern Cape expansion projects

• Coal growth

• Inyanda Coal JV

• Leeuwpan expansion

• Grootegeluk market coke project

• Heavy minerals: Fairbreeze

• Longer term potential

• Iron ore – Faleme (Senegal)

• Heavy minerals – Toliara Sands (Madagascar)

• Coking coal - Moranbah South (Australia)

Robust project pipeline

30

OUTLOOK

Positive factors

• Strong commodity markets

• Sustained excellent operating performance

• Business improvement initiatives

BUT: Rand strength and volatility poses major risk to the resource sector

• Strain on cash flow from operations

• Impact on new projects

Therefore, if the Rand stays at recent levels, we are unlikely to improve on earnings

THANK YOU.

HARNESSING THE POWER OF THE EARTH

www.kumbaresources.com

32

ADDITIONAL SLIDES

33

REVENUE CONTRIBUTION

FY0312M04

56%

1%1%12%

8%

22%

46%

21%

19%

13% 1%

Iron oreCoalHeavy mineralsBase metals

Industrial mineralsOther

34

EBIT CONTRIBUTION

FY0312M04

59%

8%2%

4%

27%

Iron oreCoalHeavy mineralsBase metals

Industrial mineralsOther

71%

2%5%

22%

35

IRON ORE PHYSICAL INFORMATION

Production volumes Sales volumes

0

2

4

68

10

12

14

16

1H02 2H02 1H03 2H03 1H04 2H04

Mt

Sishen Thabazimbi

0

2

4

6

8

10

12

14

16

1H02 2H02 1H03 2H03 1H04 2H04

Mt

Exports Local

36

COAL PHYSICAL INFORMATION

Production volumes Sales volumes

0

2

4

6

8

10

1H02 2H02 1H03 2H03 1H04 2H04

Mt

Eskom Domestic Export

0

2

4

6

8

10

1H02 2H02 1H03 2H03 1H04 2H04

Mt

Thermal Coal Coking Coal

Other

37

HEAVY MINERALS INFORMATION

Production volumes Sales volumes

0

100

200

300

400

500

Ilmen

ite

Zirc

on

Rut

ile

Pig

-iron

Chl

orid

e sl

ag

Sul

phat

e sl

ag

Syn

thet

ic r

utile

Pig

men

t

Ticor SA Ticor Ltd

0

20

40

60

80

100

Ilmen

ite

Zirc

on

Rut

ile

Pig

-iron

Chl

orid

e sl

ag

Sul

phat

e sl

ag

Syn

thet

ic r

utile

Ticor SA Ticor Ltd

38

DEPRECIATION PER SEGMENT

R million 12M04 FY03

Iron Ore 248 235

Coal 148 137

Heavy Minerals 191 92

Base Metals 45 41

Industrial Minerals 6 6

Corporate 6 21

Total 644 532

39

CAPITAL EXPENDITURE

R million 12M04 FY03

Sustaining and environmental 314 264

Expansion

• Ticor SA 485 923

• Group (other) 274 199

1 073 1 386

40

DEBT STRUCTURE

R million Drawn Undrawn Maturity profile

Long term 2004 472

Corporate 1 734) 319 2005 813

Ticor SA project finance 1 126) 92 2006 556

Ticor Ltd 630) 2007 1 023

3 490)

Short term -) 2 188 After 2007 626

Total debt 3 490) 3 490

Cash and cash equivalents (1 238)

Net debt 2 252)

41

PROJECT CAPITAL EXPENDITURE

ProjectImplementation

date (start)Estimated

capital cost

Hope Downs 2007 AU$1.7bn

Sishen Expansion Project (SEP) 2007 R2.4bn

Sishen South 2005 R2.0bn

Faleme 2010 US$950m

Leeuwpan expansion 2005 R91m

Inyanda Coal JV (50%) 2007 R186m

Grootegeluk market coke project

2005 R344m

Fairbreeze 2007 R516m