Mark Cutifani, CEO, AngloGold Ashanti, video message to the 2009 Conference

Speaker A Hello everybody, and hello from sunny South Africa. I've been asked by the team to say a few words. The last time I participated in a Go conference, it was back in Toronto. We were operating at CBRD Inco. As Chief operating officer. And for those that were aware, we were reconstructing the business on Requisite principles and we were introducing some changes in terms of our processes at the operating level. Just to let you know the good news that in 2008 the Canadian operations within CBRD Inco delivered the best outcome in terms of safety, production, productivity, operating costs, and had the best development profile on a go forward basis compared to anything they had done in the previous 100 years. So it'd been a tremendous success. We were probably only about halfway through the implementation, so very pleased with what was achieved. And to Fred Stanford and his team, an exceptional job and certainly they'd set the business up on a long term basis. I know that today, as we speak, the operations are on strike. That is very disappointing to see. But I would take the counsel of those that have gone before me in saying that old leaders or past leaders should never comment on what's going on in old businesses as we speak today. So like to acknowledge the work of the team in delivering a great result. My focus today is to talk about the new Anglo Goldish Anti. I've been here for about two years. We've reworked the company. The company, if I can introduce it, is a global gold mining company. 60,000 employees. We're operating across 15 countries, ten in terms of operations and five on the exploration front. We're the world's third largest gold miner. Interestingly, in the last 15 months since we've been implementing requisite principles and rebuilding our business processes, we've been the highest performing mining stock in the global universe of the mining industry. We've obviously been advantaged by the improvements in gold price, but we've also been the highest performing gold company across the gold space. So we look and we're happy with the progress we've made. We've been focusing on the things you'd expect us to focus on balance sheets, hedge, book restructuring, portfolio management within the business. We've been introducing a new business model that we think is quite unique in the gold industry. But more importantly, we've been working within our communities influencing policy to help us as an industry and more importantly, ultimately helping societies in which we work create new futures in developing a new sustainability model. Which, obviously in terms of where we operate. 70% of our businesses in Africa is absolutely critical for the future of those communities and ultimately for the future of our business. And I think we've been making good progress. Although, if I can say it in a very simple way, we've been just scratching the surface in talking about the change that we've been introducing in our business. If I can take you back to the automobile industry. 50 years ago, there was a vision in Toyota that was looking and people articulated a vision to be the number one automobile company in the world. And I think in the last two years, toyota has finally realized that objective. In talking to that objective, the vision for the company, which was followed by the implementation of structural change and business process changes, was to create a total work experience whereby innovation, new approaches and ideas would ultimately be the catalyst in driving improving market share across the globe and ultimately to take them to the number one position. And I think as an example of businesses that have taken a long term view where capability has clearly been in play is the Toyota Manufacturing Company or the application of the Toyota manufacturing system. They really looked at the whole and produced a company that grew market share. If you compare the Toyota experience to those of GM or Ford that took a position where they bought market share or really never addressed the whole package, and where today you see in the US and Canada a 30% to 50% productivity differential on a like for lug basis, you really start to think about what makes Toyota difference in the mining industry. There is no company, and I mean no company and I mean that without exception that's been able to put the full package together. In my experience, the closest company that was able to do that was CRA. Back in the early eighty s. And for ten to almost 15 years, CRA was the most profitable and fastest growing international mining company in the world. We've learned from those experiences. We're implementing a total change program and if I can capture it in its essence from the outset and the words we use are people are the business, people are not assets, people are not debits and credits and the balance sheet. People are the business. And ultimately, and as a famous industrialist at the turn of the last century said you can take away the equipment, you can take away the factories, but if I have the people, I can rebuild the business. But if you take away my people, we have nothing. At Anglo Gold Ashanti, we are a team. It's not I. It's we. And together we're building, we think the leading mining company. We're building a whole new organization, structure and strategy. And within that we're designing operating processes, systems, structures that support people in doing their work. And at the same time, we're bringing the external community into the business. And we're taking the business into the community. We are changing the communities in which we work. We are helping them develop policies that will see those communities successful and build and grow over the next 100 years. And at the same time, we're looking at and building structures that link with those systems so that we're part and parcel of their future growth in the future. We have, and we've only really just started on that journey. We've made some significant advancements in terms of the design of the processes. And we will have some people at the conference with you can talk to some of those changes that we've made in terms of the organization structures and the processes and approaches. But again, I think we're developing a fully integrated change model that takes into account, I think, the whole package. We're very excited with what we're doing, again, focusing on people as the catalyst and the drivers of change. We wish you well in the conference and again, looking forward to the feedback that we receive to help us understand how we can continue and go forward in our designs in terms of our creating the leading mining company. Go well.