GROUP FINANCIAL RESULTS

PRESENTATION 2003For the year ended 30 June 2003

HARNESSING THE POWER OF THE EARTH

www.kumbaresources.com

2

CON FAUCONNIERCHIEF EXECUTIVE

3

KEY FINANCIALS

Revenue R 7 469 m

Net operating profit R 1 212 m

Headline earnings R 784 m

Headline earnings per share 264 cents

Dividend per share 60 centsHeadline EPS

Sound performance despite challenging environment

195

385

264

FY01 FY02 FY03

4

HIGHLIGHTS

Solid operating performance

Heavy Minerals

• Acquired controlling interest in Ticor Ltd

• Furnace #1 start-up

First venture into Chinese operations

Despite adverse market conditions, 60 cents dividend declared

Realising diversification strategy

5

RAND VOLATILITY EFFECT

• Currency impact: 10c R 45 m EBIT

• Unrealised currency translation impact R 73 m

• Ongoing cost focus

Bottom line impacted by exchange rate

0

4

8

12

16

R/US$

FY02 FY03

R10.18 R9.01

R10.37

R7.42

average realised:

6

HEAVY MINERALS

• Holding in Ticor Limited increased to 51.4%

• Ticor Limited now a subsidiary – results consolidated from 1 April 2003

• Ticor South Africa

• Mine & MSP performance

• First production of slag and pig iron

• First shipments

Diversification, control and growth …

7

STAKEHOLDER ISSUES

• Competition Tribunal

• Mineral and Petroleum Resources Development Act

• Mining Charter and Scorecard

• Royalties Bill

• Empowerment in Kumba

• Wage negotiations

• HIV/AIDS

8

MIKE KILBRIDEEXECUTIVE DIRECTOR OPERATIONS

HARNESSING THE POWER OF THE EARTH

9

SAFETY, HEALTH & ENVIRONMENT

• Fatalities reduced by 50%

• Lost time injuries sustained below industry average

• International environmental certifications at Sishen and Zincor

• Strategy to achieve international certification at all operations

Lost day injury frequency rate

Zero tolerance… key focus

0

1

2

3

4

5

FY

01

FY

02

FY

03

10

IRON ORE – MARKETS

• Strong international demand driven by China

• Kumba has 7.6% of Chinese imports

• Strong domestic sales

• 9% price increase

Total Chinese imports

Chinese market driving growth

Kumba Chinese exports

0

2

4

6

8

10

'98 '99 '00 '01 '02 '03

Mt

% Share

40

60

80

100

120Mt

FY

11

141618

20222426

2830

'99 '00 '01 '02 '03

Mt

Export sales Production

IRON ORE – OPERATIONS

• Total production 28.6 Mt

• Production record at Sishen 26.2 Mt

• Exports record 20.9 Mt

• Total tonnes mined +7%

• Focus on selective mining

Steady increase in output

28.6 Mt

20.9 Mt

12

10

15

20

25

30

'99 '01 '03 '05(T)

Mt

Kumba Other

IRON ORE - LOGISTICS

• Railage record 26.1 Mt

• 29 Mtpa expansion in progress

• Further expansion under investigation

Sishen-Saldanha rail performance

Expansion critical for further growth in exports

29

26.1

(Target)

13

COAL – MARKETS

• Strong demand from metals market

• High volumes to Matimba sustained - 13.1 Mt

• Record demand from Iscor - 2.8 Mt

• Improved sales mix

Eskom43%

Metals31%

Exports17%

Domestic9%

Coal revenue profile

Valuable earnings contributor

14

COAL – OPERATIONS

• Good operational performance

• Strong continuous improvement focus

• Threat from rail tariffs

Coal production volumes

10

12

14

16

18

20

'00 '01 '02 '03

Mt

Grootegeluk Leeuwpan

Tshikondeni Durnacol

15

Hydraulic mining

Primary Wet Plant

Mineral Separation

Plant

HMC

Furnaces

Sand tailingsSlimes Chloride slag

Sulphate slagZirconRutile

Process overview

crude ilmenite

Roaster / URIC

ROM ilmenite

Metal plant

Slag plant

• Mine/PWP and MSP have met all performance tests

• Furnace #1 ramp-up on schedule

• Slag plant in process of ramp-up

• Furnace #2 construction ahead of schedule

TICOR SA - PROCESS OVERVIEW

Pig iron

16

HEAVY MINERALS – OPERATIONS

Ticor SA (60%)

• Successful ramp-up

• Zircon production 53 kt

• Rutile production 20 kt

• Ilmenite production 91 kt

World no 3 in TiO2 units

Ticor Ltd (51.4%)

TiWest results:

• Zircon production 80 kt

• Rutile production 36 kt

• Synthetic rutile production 179 kt

• Pigment production 94 kt

17

BASE METALS - MARKETS

• Price remains depressed

• Rand price down 13%

• Lower treatment charges

Zinc metal price

700

800

900

1,000

1,100

1,200

1,300

FY00 FY01 FY02 FY03

US$

5,000

6,000

7,000

8,000

9,000

10,000ZAR

US$/t ZAR/t

18

BASE METALS - OPERATING RESULTS

• Record zinc metal production 115 kt

• Sales increased by 5%

• Record concentrate output from Rosh Pinah

Zn metal ‘000t

Rosh Pinah

103105 105

115

'00 '01 '02 '03

Zn conc. ‘000t

Zincor

72 72 7591

'00 '01 '02 '03

19

ZINC BUSINESS IMPROVEMENT

• Despite low cost operations, margin under pressure

• Initiative to target R 100 m improvement

Source: Brooke Hunt

Zn refinery cost curve

Zincor

0

5

10

15

20

25

30

35USc/lb

20

INDUSTRIAL MINERALS

• Record ferrosilicon production

• Good market share growth

• Record dolomite sales

Dolomite sales (Mt)

FeSi production

(t)

Strategically important

0.97 0.92

1.26 1.30 1.32

'99 '00 '01 '02 '03

4105 4518 4669 43335350

'99 '00 '01 '02 '03

21

Kumba continues to drive initiatives associated with the performance improvement programme

OPERATIONAL EXCELLENCE

2003 actuals 2004 targets

ThroughputIncreased sales tonnage to the value of R 429 m

Targeted increase in sales tonnage of 2% to the value of R 426 m

CostsContained production costs below inflation - R 29 m

Targeted reduction in real production costs of 2% to the value of R 123 m

22

DIRK VAN STADENEXECUTIVE DIRECTOR FINANCE

HARNESSING THE POWER OF THE EARTH

23

REVENUE

R million FY03 FY02 % Change

Iron ore 4 234 4 340 (2)

Coal 1 638 1 489 10)

Base metals 892 941 (5)

Heavy minerals 587 227 159)

Industrial minerals 78 57 37)

Other 40 128 (69)

Total 7 469 7 182 4)

5 year compound annual growth rate of 14%

24

OPERATING PROFIT / MARGIN

FY03 FY02 % Change

Rm) (%) Rm (%) in R-value

Iron ore 882) 21 1 221 28 (28)

Coal 279) 17 255 17 9)

Base metals 15) 2 102 11 (85)

Heavy minerals 59) 10 54 24 9)

Industrial minerals 21) 27 15 26 40)

Other (44) 36

Total EBIT 1 212) 16 1 683 23 (28)

Total EBITDA 1 744) 23 2 137 30 (18)

US$/R exchange rate realised 9.01) 10.18

Valuation rate at end of period 7.42) 10.37

5 year compound annual growth rate of 21%

25

EBIT COMPARISON

• Higher iron ore and heavy minerals volumes

• Lower iron ore prices

• Higher coal prices

• Stronger currency impact

• Higher production costs:

• volumes

• maintenance, stripping, environmental, insurance

1683

1212

483138 655

77

360

FY

02 E

BIT

Vol

ume

Pric

e

Tot

al e

xcha

nge

rate

impa

ct

Pro

duct

ion

cost

Dis

trib

utio

nco

st

FY

03 E

BIT

R million

Significant currency impact

26

CURRENCY IMPACT

R million FY03 FY02

EBIT 1 212) 1 683)

Unrealised translation loss/(gain) 73) (9)

Currency exchange movements 92)

Derivatives (19)

Realised exchange rate impact 573)

EBIT excluding exchange rate impact 1 858) 1 674)

Margin excl. exchange rate (%) 23) 23)

Rand appreciation reduces margin

27

EARNINGS

R million FY03 FY02 % Change

Net operating profit (EBIT) 1 212) 1 683) (28)

Net financing cost (244) (242) (1)

Goodwill and impairment (23) (75) 70)

Equity income 2) 83) (98)

Taxation (229) (465) 51)

Profit after taxation 718) 984) (27)

Outside shareholders’ interest -) (8)

Attributable earnings 718) 976) (26)

Adjustments 66) 122)

Headline earnings 784) 1 098) (29)

Headline earnings per share (cents) 264) 385) (31)

Excluding after tax currency impact 432) 383) 13)

Average number of shares in issue (million) 297) 285) 4)

HEPS 264 cents

28

CASH FLOW

R million FY03 FY02

Opening net debt (1 143) (2 541)

Net cash flow from operating activities 780) 2 175)

Net cash used in investing activities

Heavy minerals project capital (923) (631)

Other capital expenditure (463) (454)

Net impact of consolidation of Ticor Ltd (510)

Other 2) (25)

Other cash flow movements 349)

Non-cash flow movements in net debt (117) (16)

(Increase)/decrease in net debt (1 231) 1 398)

Closing net debt (2 374) (1 143)

Net debt / equity ratio 39%

29

DEBT STRUCTURE

R million Drawn Undrawn Maturity profile

Long term 2004 407

Corporate 1 403) 2005 697

Heavy minerals project finance 1 059) 60 2006 1 126

Ticor Ltd 746) 2007 273

3 208)

Short term 130) 1 820 After 2007 705

Total debt 3 338) 3 208

Cash and cash equivalents (964)

Net debt 2 374)

Post FY03 pre-tax divestment inflow: R 100 million

30

CAPITAL EXPENDITURE

R million FY04(E) FY03 FY02

Iron ore 241 211 254

Coal 205 125 99

Base metals 127 73 90

Heavy minerals - Ticor SA - Ticor Ltd

48032

92325

631-

Industrial minerals 4 5 3

Other 42 24 8

Total 1 131 1 386 1 085

31

TICOR LTD CONSOLIDATION IMPACT

R million Consolidated Group

Ticor Ltd effect

Revenue 7 469 275

EBIT 1 212 35

Equity income 2 57

Attributable earnings 718 49

Headline earnings 784 46

Net debt 2 374 432

32

RATIOS

R million FY03 FY02

Margin excluding captive arrangements

EBIT (%) 22 30

EBITDA (%) 28 35

Net financing cost cover

EBIT (times) 5.0 7.0

EBITDA (times) 7.1 8.8

Return on equity - attributable income (%) 15 20

Net debt / equity (%) 39 22

33

CON FAUCONNIERCHIEF EXECUTIVE

34

STRATEGY

• Strategic thrusts

• Empowerment

• Northern Cape iron ore industry

• Heavy minerals

• China opportunities

• RBCT Phase 5 expansion

• Review of non-core assets

• Mincor

• Safore

• AST

Focused portfolio with clear strategic direction

35

OUTLOOK

• Business climate remains challenging

• Strong Rand environment

• Pedestrian global growth

• High oil prices

• Continued domestic cost pressures

• Given these assumptions, earnings are likely to be adversely affected

• But, earnings will be underpinned by:

• Solid operational performance

• Higher iron ore prices

• Growing contribution from heavy minerals

• Continued strong focus on cost and operating efficiencies

THANK YOU.

HARNESSING THE POWER OF THE EARTH

www.kumbaresources.com

37

ADDITIONAL SLIDES

38

KEY DATES

Financial year end 30 June 2003

Dividend declaration 19 August 2003

Last date to trade cum dividend 18 September 2003

Ex dividend trade commences 19 September 2003

Record date 26 September 2003

Dividend payment 29 September 2003

Annual Report distribution 30 September 2003

Annual General Meeting 19 November 2003

39

CAPITAL EXPENDITURE

R million FY04 (E) FY03 FY02

Sustaining and environmental 394 264 308

Expansion

• Heavy minerals

- Ticor SA 480 923 631

- Ticor Ltd - - -

• Group (other) 257 199 146

1 131 1 386 1 085

40

DEPRECIATION PER SEGMENT

R million FY03 FY02

Iron ore 235 215

Coal 137 130

Heavy minerals 92 47

Base metals 41 29

Industrial minerals 6 6

Corporate 21 27

Total 532 454

41

EBIT CONTRIBUTION FY03

Iron ore70%

Base metals

1%

Industrial minerals

2%Heavy

minerals5%

Coal22%

42

COAL – PHYSICAL INFORMATION

Coal production volumesCoal sales volumes

0

5

10

15

20

'01 '02 '03

Mt

Export

Other domestic

Eskom

0

5

10

15

20

'01 '02 '03

Mt

Other

Coking coal

Steam coal

43

HEAVY MINERALS – MARKETS

• Strong Chinese demand for Zircon

• Flat US economic activity

Ilmenite4%

Rutile7%

Sulphate slag11%

LMPI15%

Zircon16%

Chloride slag47%

Indicative steady state Ticor SA revenue contribution

Will develop into second largest business