| Fri 15 Feb 2002, 0:00 | | Anglo American Plc ("anglo American") Notification |
|
De Beers Societe Anonyme ("DBsa") announcement
Share code : ANAAL
ISIN Code : GB0004901517
Anglo American wishes to draw attention to DBsa's announcement of their
results for the 12 months to 31 December 2001, attached hereto.
Accounting note:
DBsa reported today pro forma headline earnings for the 12 months to 31
December 2001 of US$837 million. These headline earnings include De Beers'
diamond earnings for the 12 months to 31 December 2001 and De Beers' share
of Anglo American's headline earnings for the six months to 31 December
2000.
The implications for Anglo American's results for the 12 months to 31
December 2001 to be announced on 13 March 2002 are as follows:
* Headline diamond earnings:
Anglo American's headline diamond earnings can be arrived at after
eliminating De Beers' share of Anglo American's earnings for the six
months to 31 December 2000, being US$342 million, from the US$837 million
reported. Net of other minor adjustments, the headline diamond earnings
will amount to some US$234 million for the year.
* In addition, as reported in Anglo American's interim results to 30 June
2001, Anglo American will include in headline earnings for the year to 31
December 2001 an amount of $65 million, being its interest in De Beers'
share of Anglo American's headline earnings for the five months to 31 May
2001, the effective date of the elimination of the cross-holding between the
two companies.
The above figures as they relate to Anglo American are unaudited.
15 February 2002
For further information, contact:
Anglo American - London:
Nick von Schirnding
Tel: +44 20 7698 8540
DE BEERS Societe Anonyme
(formerly DB Investments)
(Incorporated under the laws of Luxembourg)
(DB Investments acquired 100% ownership of De Beers Consolidated Mines
Limited
and De Beers Centenary AG on 8 June 2001)
Friday 15 February 2002
PRO FORMA AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2001
An internal restructuring of shareholders' interests has taken place since
the year end. DB Investments, the holding company of De Beers Consolidated
Mines Limited (DBCM) and De Beers Centenary AG (DBCAG), has changed its name
to De Beers Societe Anonyme (DBsa) and a new company called DB Investments
has been created by the shareholders (Anglo American plc, Central Holdings
Limited and Debswana Diamond Company) to hold their interest in DBsa. The
restructuring will have no effect on the operations or the cash flows of the
De Beers Group.
2001 was a difficult year for the operations of De Beers and for the diamond
industry in general. The year began against the background of a weakening
global economy and an excess inventory of polished diamonds held mainly by
the US trade. The economic uncertainty was aggravated by the terrorist
attack on the US on 11th September. However, Christmas season retail sales
of diamond jewellery were above expectations; in the crucial American market
they appear to have been slightly better than Christmas 2000. Consequently,
the reduction in global retail sales in 2001 was less than had been feared.
On preliminary estimates it was some 5% down.
De-stocking by the retail trade and lower demand for diamond jewellery had a
negative impact on the rough diamond market in the form of downward pressure
on prices, shortage of liquidity and reduced profitability. In light of
these factors, sales of rough diamonds by the DTC, the marketing arm of De
Beers, were 21.5% lower than 2000 at $4,454 million.
The rough market has started the year in a more optimistic mood. Stocks of
rough diamonds in the cutting centres are low. Although there is still an
overhang of polished in the pipeline this is less than at the same time in
2001. DTC's sales prospects for 2002 will depend on the timing and extent of
any recovery in the world economy and the level of polished stocks that the
trade pipeline will be confident to carry.
During the past year, De Beers and LVMH received clearance from the European
Commission to proceed with their joint venture to launch the De Beers brand
at retail level. De Beers also made good progress with the European
Commission on its Supplier of Choice strategy.
In December, De Beers and the Russian diamond producer, Alrosa, signed a new
five year $4 billion trade agreement providing for annual sales to De Beers
of $800 million. Under European Competition rules, the agreement is being
notified to the European Commission for clearance.
Pro forma results for the year 2001 follow. However, because of the
acquisition of DBCM and DBCAG by DBsa in June 2001, the results are not
comparable with those of the previous year.
DE BEERS Societe Anonyme
(formerly DB Investments )
Pro forma Consolidated Income Statement
for the year ended 31 December 2001
(Abridged and audited)
US Dollar millions
Pro forma
12 months to 12 months to
31 December 31 December 2000
2001
Diamond sales
-DTC 4 454 5 670
-Other 413 420
Trade investment and other 639 681
income
5 506 6 771
Deduct:
Cost of sales 3 839 4 764
Depreciation and amortisation 198 115
(Note 1)
Sorting and marketing 453 406
Exploration and research 130 164
Net diamond account 886 1 322
Add:
Investment income (Note 2) 164 263
Net interest (paid) received (65) 69
Surplus on realisation of
fixed assets and investments 94 66
1 079 1 720
Deduct:
Corporate expenses (Note 3) 149 41
Net income before taxation 930 1 679
Taxation 280 370
Net income after taxation 650 1 309
Attributable to outside
shareholders in subsidiaries 8 20
Own earnings 642 1 289
Share of income of associated
companies and joint ventures 134 617
(Note 2)
Total net earnings 776 1 906
Headline earnings 837 1 707
Cash available from operating 638 2 237
activities
De Beers Societe Anonyme (DBsa) (formerly DB Investments) acquired 100%
ownership of De Beers Consolidated Mines Limited (DBCM) and De Beers
Centenary AG (DBCAG) on 8 June 2001. The results for DBsa shown above have
been prepared on a pro forma basis to include the results of DBCM and DBCAG
for the full twelve months ended 31 December 2001. The figures for 2000
reflect the previously published combined results of both DBCM and DBCAG.
Consolidated Balance Sheet
31 December 2001
(Abridged and audited)
US Dollar millions
31 December 2001
Shareholders' interests 3 578
Outside shareholders' interests 83
3 661
Provisions for liabilities and charges 224
Net interest bearing debt (Note 4) 3 152
7 037
Fixed assets (Note 1) 4 340
Investments and loans 42
Diamond stocks and other net assets 2 655
7 037
Notes and Comments
1. The goodwill arising on the acquisition of DBCM and DBCAG by DBsa of
$2.8 billion is being amortised over 20 years. An amount of $83 million ha
been expensed in the current period.
2. The reduction in investment income and share of income of associated
companies is mainly attributable to the distribution during the year of th
group's investment in Anglo American plc.
3. Corporate expenses include the cost in respect of the early redemption
of DBCAG's Sterling Bonds and non recurring fees relating to the acquisiti
of DBCM and DBCAG by DBsa.
4. Cash has been offset against interest bearing debt.
5. The $3,550 million Senior Debt facility has been drawn against in full.
The $1 billion revolving facility was not utilised during the period
under review.
Contacts:
De Beers London:
Lynette Hori +44 20 7430 3509/+44 7740 393260
Kate Evan-Jones +44 20 7430 3531/+44 7720 350234
De Beers South Africa
Tracey Peterson +27 11 374 7388/+27 83 408 7173
Pride Mogorosi +27 11 374 7155
Visit the official De Beers Group website for more information on the
company and where you can view and download a selection of images -
www.debeersgroup.com. As an additional resource for images, please visit
www.newscast-online.com.
