Rio Tinto Plc · LSE:RIO
Rio Tinto — Non-Deal Roadshow (September 2015)
15 slides from Rio Tinto's roadshow presentation, September 2015
Slide 1: Well positioned for consumer driven growth
September 2015 Sydney Well positioned for consumer driven growth Alan Davies, chief executive, Diamonds & Minerals
Slide 2: Cautionary statement
2 Cautionary statement 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 certain forward-looki
Slide 3: Diamonds & Minerals: delivering strong margins
3 Diamonds & Minerals: delivering strong margins 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 as increased Asian Soft
Slide 4: Delivering on our promises
4 Delivering on our promises 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 to June 20151 2013 to J
Slide 5: Well positioned for consumer-driven growth
5 Well positioned for consumer-driven growth 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 2022E TiO2 feedstocks Dia
Slide 6: Strong market position in attractive industries
6 Strong market position in attractive industries TiO2 feedstock demand and supply RT share of Zircon demand and supply RT share of ‘000 TiO2 units 2014 sales ‘000 tonnes 2014 sales 10,000 2,000 9,000 High-grade 1,750 49% chloride 20% 8,000 1,500 7,000 High-grade 1,250 41% sulphate 6,000 ~4% CAGR 1,
Slide 7: Maximising value through customer and market orientation
7 Maximising value through 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 products e.g. Fashion jew
Slide 8: Demand-led operating philosophy
8 Demand-led operating philosophy TiO2 production1 Million tonnes (data presented on a RT share basis) 2.0 • 2014 TiO2 feedstock production back to 2011 1.4mt level 1.0 to 1.1mt 1.0 • Aligning production to market demand − Two furnaces at Sorel taken offline - 2011 2012 2013 2014 2015* − Furnaces ru
Slide 9: Maximising ore value through product portfolio
9 Maximising ore value through product portfolio 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 • Zircon and metallics make significant 0% 20% 40% 60% 80% 100
Slide 10: Cost and productivity improvements
10 Cost and productivity improvements Diamonds & Minerals cash operating costs • Improving productivity and reliability: Indexed 2012 100 -33% − System and process optimisation − Consistent and controlled operating 75 procedures 50 − Working capital optimisation across the supply chain 25 − LEAN imp
Slide 11: Compelling project pipeline
11 Compelling project pipeline 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 feasibility study A21, on bud
Slide 12: Delivering Simandou feasibility study
12 Delivering Simandou feasibility study • 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 study in progress ©2
Slide 13: Extremely well positioned to continue delivering cash flow
13 Extremely well positioned to continue delivering 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 productivity improvements will
Slide 14: Appendix
September 2015 Sydney Appendix
Slide 15: RTIT product portfolio
RTIT product portfolio 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-Saint-Pierre, Quebec, Cana