Rio Tinto Plc · LSE:RIO
Rio Tinto — Non-Deal Roadshow (September 2015)
16 slides from Rio Tinto's roadshow presentation, Sep 7, 2015
Slide 1: Notice to ASX: Diamonds & Minerals investor roadshow
Notice to ASX Diamonds & Minerals investor roadshow For personal use only 7 September 2015 Attached is a presentation given today by Alan Davies, Rio Tinto chief executive Diamonds & Minerals as part of an investor roadshow commencing in Australia. The presentation will also be available on Rio Tint
Slide 2: Well positioned for consumer driven growth
September 2015 Sydney For personal use only Well positioned for consumer driven growth Alan Davies, chief executive, Diamonds & Minerals
Slide 3: Cautionary statement
2 Cautionary statement For personal use only This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited (“Rio Tinto”). By accessing/attending this presentation you acknowledge that you have read and understood the following statement. Forward-looking statements This document contains
Slide 4: Diamonds & Minerals: delivering strong margins
3 Diamonds & Minerals: delivering strong margins For personal use only Well positioned for consumer-driven growth Diamonds Borates Titanium Dioxide Salt & Uranium 42% FOB EBITDA 27% FOB EBITDA 26% FOB EBITDA 44% EBITDA margins margins margins margins in salt Argyle underground Stable borate demand r
Slide 5: Delivering on our promises
4 Delivering on our promises For personal use only Improve Strengthen Deliver Reducing Reducing Increasing free costs capex cash flow US$708 US$898 million million Year on year gross controllable operating, exploration & evaluation cost reductions Year on year capex reductions January January 2013 t
Slide 6: Well positioned for consumer-driven growth
5 Well positioned for consumer-driven growth For personal use only Mid-to-late cycle demand trajectories Driven by consumption Indexed 2015 Chinese urban households* (percentage) 3 200 Affluent 9 14 Upper 180 Middle Class 54 160 140 Poor & 83 Mass Middle 120 Class 38 100 2015 2020 2025 2030 2012 202
Slide 7: Strong market position in attractive industries
6 Strong market position in attractive industries For personal use only TiO2 feedstock demand and supply Zircon demand and supply ‘000 TiO2 units ‘000 tonnes 10,000 2,000 RT share of RT share of 9,000 1,750 2014 sales 2014 sales 8,000 1,500 High-grade 7,000 49% 1,250 20% chloride 6,000 1,000 High-gr
Slide 8: Maximising value through customer and market orientation
7 Maximising value through For personal use only customer and market orientation • Global marketer with integrated mine-to- market capabilities • Value-based pricing • Diversified geographic, customer and product mix • Commercial excellence driven by market insight • Creating new markets for our pro
Slide 9: Demand-led operating philosophy
8 Demand-led operating philosophy For personal use only TiO2 production Excludes Rutile Million tonnes. Data presented on a RT share basis 2.0 1.4mt • 2014 TiO2 feedstock production back to 1.5 1.0 to 1.1mt 2011 level. 1.0 • Aligning production to market demand 0.5 - − Two furnaces at Sorel taken of
Slide 10: Maximising ore value through product portfolio
9 Maximising ore value through product portfolio For personal use only Production breakdown, 2014 • Wide range of TiO2 feedstock options for Percentage of product tonnes - Multiple chloride and sulphate slags - Upgraded slag (UGS) - Rutile - Chloride Ilmenite 0% 20% 40% 60% 80% 100% TiO2 feedstocks
Slide 11: Cost and productivity improvements
10 Cost and productivity improvements For personal use only Diamonds & Minerals cash operating costs • Improving productivity and reliability: Indexed 2012 − System and process optimisation 100 33% 90 − Consistent and controlled operating 80 70 procedures 60 50 − Working capital optimisation across
Slide 12: Compelling project pipeline
11 Compelling project pipeline For personal use only Diamonds, Diavik A21 Titanium, Zulti South A21 is Diavik’s third dike and open pit An industry leading TiO2 resource with valuable zircon and rutile co-products • Development of the fourth kimberlite pipe at Diavik, • Work continues on the feasibi
Slide 13: Delivering Simandou feasibility study
12 Delivering Simandou feasibility study For personal use only • World-class, undeveloped high-grade iron ore deposit • Ratified Investment Framework establishes a robust investment regime − Separated the mine and infrastructure − Third party infrastructure consortium to be established • Feasibility
Slide 14: Extremely well positioned to continue delivering cash flow
13 Extremely well positioned to continue delivering For personal use only cash flow Mid-to-late cycle commodities driven by rising wealth and consumption Reshaping industries in which we operate Demand-led philosophy supported by a global customer and market oriented business model Cost and producti
Slide 15: Appendix
September 2015 Sydney For personal use only Appendix
Slide 16: RTIT product portfolio
RTIT product portfolio For personal use only QIT Madagascar Minerals Rio Tinto, Fer et Titane Richard Bay Minerals (QMM) (RTFT) (RBM) Rio Tinto ownership: 80% Rio Tinto ownership: 100% Rio Tinto ownership: 74% QMM- St Luce mine RTFT- Lac Tio mine RBM - Zulti North / Tisand mine Madagascar Havre-Sain