Anglo American Annual Report 2012

We organise our business efficiently andeffectively to outperform our competitionthroughout our value chain.DRIVING VALUE THROUGHCOMMERCIAL EXCELLENCEDuring 2012, we introduced a more globallycoordinated and strategic approach to theway we manage our commercial activities,aimed at delivering substantial additional valuefor the Group.A key element of the new approach is the locationof business units’ export sales and marketingactivities in Singapore and London, to enable usto be closer to our customers in the Asia-Pacificand European markets, and be more agile andresponsive to their needs.The new Singapore hub opened in July 2012,with Metallurgical Coal, Thermal Coal andPlatinum establishing a base there during theyear and others, including Iron Ore and Copper,following in 2013.New global competence centres will alsosupport value creation by driving excellenceand innovation in areas such as logistics,shipping and market intelligence.For instance, all our global shipping activitieshave now been consolidated into a singlefreight book, with an increasing proportionof cargo deliveries arranged by us rather thanthe buyer. Consolidating our freight bookimproves our purchasing power and enablesus to be more efficient in managing shipmentsthrough our loading facilities. Sharing vesselsand coordinating deliveries will also makebetter use of global shipping routes, reducingfreight costs and turnaround times.50 MtGROUP’S FREIGHT PORTFOLIOTARGET BY 2015.2012 REVENUE GENERATED BY CUSTOMERS IN CHINA (1)$5.9 bn$3.5 bn$5.1 bn$6.4 bn2009 2010 2011 2012(1)The Group’s revenue including attributable share of revenue from associates.$5.9 bn01Operating and financial review“This new approach brings us closerto our customers, enabling us to bemore responsive to their needs. Wecan also create significant additionalcommercial value by coordinatingour approach globally, improving ourproduct mix, enhancing our logistics,and using more sophisticatedmarketing tools and techniques.”Dr Alexander SchmittGroup Head,Commercial CoordinationMain and 02 Therecently openedAnglo Americansales and marketinghub, in Singapore.01 Iron ore fromKumba’s Sishenmine, 861 kilometresaway, is transferredfrom rail wagons atthe dedicated exportport of Saldanha onSouth Africa’sAtlantic coast.02c.57 MtYEAR-ON-YEAR INCREASE IN IRONORE IMPORTS TO CHINA IN 2012.Source: MySteel and Anglo American data574 vesselsIRON ORE VESSELS INTO QINGDAOPORT, CHINA IN 2012.Anglo American plc Annual Report 2012 19