Slide 1: 2010 interim results
2010 interim results 5 August 2010 Shiploader, Cape Lambert
Slide 2: Cautionary statement
Cautionary statement This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited (“Rio Tinto”) and consisting of the slides for a presentation concerning Rio Tinto. By reviewing/attending this presentation you agree to be bound by the following conditions. Forward-looking statements T
Slide 3: Continued improvement in safety
Continued improvement in safety 5 August 2010 Rio Tinto 2010 interim results 3
Slide 4: First half 2010 highlights
First half 2010 highlights • Record underlying earnings from higher prices and volumes • Strong cash flows reduced net debt to $12 billion • Operations producing close to capacity • Capital expenditure set to rebound in second half following $3 billion of project approvals in 2010 • Growth projects
Slide 5: Prices and volumes drive iron ore earnings
Prices and volumes drive iron ore earnings 2010 first half highlights • Move to quarterly pricing amidst strong market environment • Pilbara operating close to nameplate capacity of 220mtpa • IOC pellet production at full capacity • Operations Centre fully active Exceptional growth path • Focus on r
Slide 6: Aluminium transformation continues
Aluminium transformation continues 2010 first half highlights • Further recovery in pricing • EBITDA breakeven of $1,530/t • Abnormally low rainfall in Saguenay to reduce H2 EBITDA by approx $100 million • Power outage at Laterrière – operating at 50% capacity – final tests for restart underway • Se
Slide 7: New growth projects announced for Copper
New growth projects announced for Copper 2010 first half highlights • Prices slip back from prior half but provide major boost from 2009 first half • Mined copper production impacted by lower grades at Kennecott Utah Copper and Grasberg • Earnings boosted by higher moly prices and volumes • Approval
Slide 8: Energy impacted by lower prices
Energy impacted by lower prices 2010 first half highlights • Continued strength in seaborne market for Australian coal • Australian thermal coal and ERA production impacted by bad weather • Increased coking coal production following equipment investment and operational improvements • First productio
Slide 9: Diamonds & Minerals markets continue to recover
Diamonds & Minerals markets continue to recover 2010 first half highlights • Recovery in prices and volumes • Late cycle commodity strength in first half • Strong growth in Chinese demand for diamonds • Continued progress in Madagascar • Diavik underground commenced production in March • Argyle deve
Slide 10: Price and volume drive earnings, offsetting cost pressure
Price and volume drive earnings, offsetting cost pressure Note: Exploration and evaluation variance includes $568 million net decrease in gain on undeveloped property sales (+$229 million gain in H1 2010 from sale of undeveloped coal properties compared with $797 million gain in H1 2009 from sale of
Slide 11: Outstanding cash flow generation
Outstanding cash flow generation 5 August 2010 Rio Tinto 2010 interim results 11
Slide 12: Further repayment of debt in first half
Further repayment of debt in first half Gearing defined as ratio of net debt to net debt plus total equity 5 August 2010 Rio Tinto 2010 interim results 12
Slide 13: A consistent approach to uses of cash flow
A consistent approach to uses of cash flow • Investment in value adding growth is top priority • Stable investment conditions a pre-requisite • Single A rating target provides flexibility in a volatile world • Current rating of BBB+ (positive outlook) / Baa1 (stable) • Interim dividend of US45 cents
Slide 14: Persistent economic imbalances may lead to medium term volatility
Persistent economic imbalances may lead to medium term volatility GDP growth forecasts 2009 2010 2011 US -2.4 3.3 2.9 Eurozone -4.1 1.0 1.3 Japan -5.2 2.4 1.8 China 9.1 10.5 9.6 India 5.7 9.4 8.4 Other Asia 1.7 6.4 5.5 Brazil -0.2 7.1 4.2 Middle East 2.4 4.5 4.9 World (PPP -0.6 4.6 4.3 weighted) Sou
Slide 15: Long term trends support significant growth momentum in Rio Tinto's markets
Long term trends support significant growth momentum in Rio Tinto’s markets Source: Global Insight 5 August 2010 Rio Tinto 2010 interim results 15
Slide 16: Rio Tinto's global project pipeline provides options to invest
Rio Tinto’s global project pipeline provides options to invest Key Mines and mining projects Smelters, refineries, power facilities and processing plants remote from mine Countries where Rio Tinto operates Aluminium Copper / nickel Diamonds Energy Iron ore Minerals 5 August 2010 Rio Tinto 2010 inter
Slide 17: $13 billion of capital investment expected over the next 18 months
$13 billion of capital investment expected over the next 18 months Simandou signing ceremony Oyu Tolgoi construction in progress Cape Lambert Kitimat modernisation 5 August 2010 Rio Tinto 2010 interim results 17
Slide 18: Focused on value adding growth
Focused on value adding growth • Outstanding first half earnings, EBITDA and operating cash flow • Net debt reduced to $12 billion • Operating at close to capacity • Key projects completed on time and on budget • Second wave of transformation at Aluminium underway • Strong balance sheet allows $13 F
Slide 19: 2010 interim results
2010 interim results 5 August 2010 Shiploader, Cape Lambert