Rio Tinto Plc · LSE:RIO
Rio Tinto — Shareholder Meeting (April 2013)
27 slides from Rio Tinto's shareholder meeting presentation, Apr 19, 2013
Slide 1: 2013 Annual general meeting
18 April 2013 Chairman Chief executive For personal use only 2013 Annual general meeting London
Slide 2: Jan du Plessis, Chairman
18 April 2013 Chairman Chief executive For personal use only Jan du Plessis Chairman
Slide 3: Strong underlying fundamentals
3 Strong underlying fundamentals For personal use only • Strong underlying earnings and cash $ billion 2011 2012 Movement flows from operations Underlying • Impacted by: earnings 15.5 9.3 -40% − Lower prices and price volatility Net earnings/ across most commodities 5.8 (3.0) -151% (loss) − Stronger
Slide 4: Pursuing greater value for our shareholders
4 Pursuing greater value for our shareholders For personal use only Aluminium rod, Saguenay-Lac-St-Jean, Canada ©2013, Rio Tinto, All Rights Reserved
Slide 5: Disciplined capital management
5 Disciplined capital management For personal use only • Disciplined and rigorous approach Cash from operations to capital allocation and divestment proceeds • Investment programme focused Disciplined Prudent Cash on highest quality opportunities investment in balance returns to highest value sheet
Slide 6: Other board focus areas in 2012
6 Other board focus areas in 2012 For personal use only Pilbara iron ore expansion, Western Australia Richards Bay Minerals, South Africa ©2013, Rio Tinto, All Rights Reserved
Slide 7: A consistent strategy
7 A consistent strategy For personal use only Pursuing greater value for shareholders Strategy Investing in and operating large, long-term, expandable, low-cost mines and businesses, driven by the quality of each opportunity in the most attractive industry sectors. ©2013, Rio Tinto, All Rights Reser
Slide 8: Volatility in commodity prices is set to continue
8 Volatility in commodity prices is set to continue For personal use only Iron ore prices – USD/t CFR China • Significant market volatility unlike anything % we have seen before 200 180 • Iron ore prices are illustrative of this 160 turbulence 140 120 100 80 60 40 20 0 Dec 08 Jun 08 Sep 08 Mar 09 De
Slide 9: Navigating through volatility
9 Navigating through volatility For personal use only We must maintain a strong balance sheet throughout the 1 economic cycle 2 We must be low cost operators ©2013, Rio Tinto, All Rights Reserved
Slide 10: Leading on transparency
10 Leading on transparency For personal use only Group’s 2012 total tax contribution of US $11.6bn Rossing, Namibia ©2013, Rio Tinto, All Rights Reserved
Slide 11: Positive long-term prospects
11 Positive long-term prospects For personal use only Oyu Tolgoi, Mongolia ©2013, Rio Tinto, All Rights Reserved
Slide 12: Sam Walsh, Chief executive
18 April 2013 Chairman Chief executive For personal use only Sam Walsh Chief executive
Slide 13: Pursuing greater value for shareholders
18 April 2013 Chairman Chief executive For personal use only Pursuing greater value for shareholders
Slide 14: Safety
14 Safety For personal use only Injury frequency rates 2003 – 2012 Per 200,000 hours worked 2 All injury 1.8 frequency rate 1.6 Lost time injury 1.4 frequency rate 1.2 1 0.8 0.6 0.4 0.2 0 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 Safety briefing, Gove Alumina Refinery, Australia ©2013, Rio Tinto, All
Slide 15: Strong operating performance
15 Strong operating performance For personal use only Delivering shareholder value in our iron ore business Record global shipments in 2012 (100 per cent basis) 247 million tonnes The Pilbara, Western Australia ©2013, Rio Tinto, All Rights Reserved
Slide 16: Investments in high value projects
16 Investments in high value projects For personal use only • Total capital expenditure in 2012 of US$17.4bn • Investments made in the high value areas of our business • A recovery plan in place to minimise the impact of the pit wall slide at our copper mine in Utah • Divesting assets that no longer
Slide 17: The year ahead
17 The year ahead For personal use only In 2013 we will: Reduce costs Strengthen Deliver growth Divest non-core 1 and improve performance 2 projects 3 capital allocation and discipline 4 assets Build a stronger, more focused, and accountable business ©2013, Rio Tinto, All Rights Reserved
Slide 18: The year ahead
18 The year ahead For personal use only We are delivering in each area: Pilbara expansion Strengthened 1 Targeting cumulative 2 plans on track 3 Investment Committee 4 Pursuing cost savings divestments controls of US$5bn for cash Oyu Tolgoi over the next proceeds due for first Reviewing all two year
Slide 19: Building a stronger, more focused and accountable business
19 Building a stronger, more focused For personal use only and accountable business • Streamlined the Executive committee from 11 to nine members • Bonus and reward structures more closely Must do this by remaining aligned to individual value delivery true to our values: • Delayering the organisatio
Slide 20: A clear direction
20 A clear direction For personal use only My vision is to build a company that is greatly admired and respected. A company that is attractive to investors; a company that customers, suppliers, governments and communities want to partner with; and a company employees and shareholders are proud to be
Slide 21: Delivering value for the next years
21 Delivering value for the next 140 years For personal use only Boron, US ©2013, Rio Tinto, All Rights Reserved
Slide 22: Pursuing greater value for shareholders
18 April 2013 Chairman Chief executive For personal use only Pursuing greater value for shareholders
Slide 23: Resolutions
23 Resolutions 1 - 17 For personal use only • Receipt of 2012 Annual report • Approval of 2012 Remuneration report • Re-election of directors • Re-appointment of auditors • Remuneration of auditors • Approval of Performance Share Plan 2013 ©2013, Rio Tinto, All Rights Reserved
Slide 24: Resolutions
24 Resolutions 18 - 21 For personal use only • General authority to allot shares • Disapplication of pre-emption rights • Authority to purchase Rio Tinto plc shares • Notice period for general meetings other than annual general meetings ©2013, Rio Tinto, All Rights Reserved
Slide 25: John Varley, Remuneration committee chairman
18 April 2013 Chairman Chief executive Remuneration committee For personal use only John Varley Remuneration committee chairman
Slide 26: Questions
18 April 2013 Chairman For personal use only Questions
Slide 27: 2013 Annual general meeting
18 April 2013 For personal use only 2013 Annual general meeting London