Anglo American Annual Report 2012

OPERATING AND FINANCIAL REVIEW KEY PERFORMANCE INDICATORSMEASUREMENTAND TARGETSStrategic elementsINVESTINGIn world class assets in themost attractive commoditiesTurn to page 14ORGANISINGEfficiently and effectivelyTurn to page 18OPERATING (1)Safely, sustainablyand responsiblyTurn to page 22KPI targetsTotal shareholder return (TSR)Share price growth plus dividends reinvestedover the performance period. A performanceperiod of three years is used and TSR iscalculated annuallyReturn on capital employed (ROCE)Total underlying operating profit beforeimpairments for the year divided by the averagetotal capital less other investments and adjustedfor impairmentsIn two vital areas of our business – assetoptimisation (AO) and supply chain – we havebeaten our own expectations. By the end of 2011,we had exceeded our targets for both AO andsupply chain, each of which delivered more than$1 billion from core businesses since 2009. As aresult, we no longer report against Group-wideAO and supply chain targetsWork-related fatal injuryfrequency rate (FIFR)FIFR is calculated as the number of fatalinjuries to employees or contractors per200,000 hours workedLost-time injury frequency rate (LTIFR)The number of lost-time injuries (LTIs) per200,000 hours worked. An LTI is an occupationalinjury which renders the person unable toperform his/her regular duties for one full shiftor more the day after the injury was incurred,whether a scheduled workday or notEnergy consumptionMeasured in gigajoules (GJ)Greenhouse gas (GHG) emissionsMeasured in tonnes of CO 2equivalent emissionsCapital projects and investmentOptimise the pipeline of projects and ensurethat new capital is only committed to projectsthat deliver the best value to the Group on a riskadjusted net present value basisUnderlying earnings per shareUnderlying earnings are net profit attributableto equity shareholders, before special itemsand remeasurementsWe do, however, continue to deliver on bothprogrammes and examples of how our operationsare achieving and surpassing ‘industry benchmark’performance are detailed throughout this report.Further details on the AO and supply chainfunctions can be found on pages 18–21Total water useTotal water use includes only water used forprimary activities, measured in million m 3Corporate social investmentSocial investment as defined by the LondonBenchmarking Group includes donations, gifts inkind and staff time for administering communityprogrammes and volunteering in company timeand is shown as a percentage of profit before taxEnterprise developmentNumber of companies supported and numberof jobs sustained by companies supported byAnglo American enterprise development initiativesVoluntary HIV counselling and testing (VCT) (2)Percentage of employees in southern Africaundertaking voluntary annual HIV tests withcompulsory counselling and supportEMPLOYING (1)The best peopleTurn to page 32Voluntary labour turnoverNumber of permanent employee resignationsas a percentage of total permanent employeesGender diversityPercentage of women, and female managers,employed by the Group(1)With the exception of corporate social investment, which includes the results of De Beers from the date of acquisition,the results and targets for the Operating and Employing strategic elements include wholly owned subsidiaries andjoint ventures over which Anglo American has management control, and does not include De Beers or other majornon-managed operations such as Collahuasi, Cerrejón and Samancor. In addition, results for the Employing strategicelement exclude OMI – non-core operations.(2)2012 HIV/AIDS statistics exclude Scaw Metals South Africa.12 Anglo American plc Annual Report 2012