Slide 1: 2010 full year results
2010 full year results 10 February 2011 Cape Lambert port 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
Slide 2: Jan du Plessis, Chairman and Tom Albanese, Chief executive
Jan du Plessis Chairman Diavik Diamond Mine Tom Albanese Chief executive ISAL smelter, Iceland
Slide 3: Continued improvement in safety; 2010 highlights
Continued improvement in safety Decline in injury frequency rates 2002–2010 Per 200,000 hours worked 2.5 Lost time injury frequency rate All injury 2 frequency rate 1.5 1 0.5 0 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 10 February 2011 Rio Tinto 2010 full year results 5 2010 highlights • Record underlying
Slide 4: Increased risk of volatility in commodity prices
Increased risk of volatility in commodity prices Commodity market prices • Demand from developing (Daily spot price index (1 January 2009=100)) countries exceed expectations 380 Spot iron ore (62% Fe, fob) Prices at 31 January 2011 • Weather disruptions have Aluminium 340 Copper USc440/lb caused som
Slide 5: 50 per cent increase in Iron Ore capacity over next five years
50 per cent increase in Iron Ore capacity over next five years • Approvals of $5.6 billion to expand Car Dumpers (x2) Pilbara operations to 283mtpa by end of 2013 1.8 km • New production capacity 100% Existing Cape 2.5km Lambert Port owned • Proven track record to deliver on Tug harbour time and on
Slide 6: We are advancing our Copper growth projects
We are advancing our Copper growth projects Copper underlying results Highlights (US$bn) • Record copper prices driven by 6 supply disruptions • Earnings boosted by higher prices 5 but lower grades impacted volumes • Cornerstone expected to extend 4 KUC to 2028 3 • Increased evaluation spend on La G
Slide 7: Recovery in Diamonds & Minerals markets
Recovery in Diamonds & Minerals markets Diamonds & Minerals underlying results Highlights (US$bn) • Robust recovery in prices driven by 1.4 global economic conditions • Diamond demand from China and 1.2 India accelerates 1 • First production from Diavik 0.8 underground 0.6 • Argyle underground proje
Slide 8: Record earnings driven by strong markets
Record earnings driven by strong markets Underlying earnings 2009 vs 2010 ($m) 16,000 12,000 8,000 4,000 0 6,298 9,505 (1,171) 782 (253) (232) (445) (690) 193 13,987 2009 Price Exchange Volume Inflation Energy Cash Explor'n Interest, tax 2010 rates costs & eval'n & other Note: Exploration and evalua
Slide 9: Record cash flow generation
Record cash flow generation 2010 cash flows Cash flows from operations ($bn) ($bn) 30 25 20 Dividends from EAUs Cash flows from consolidated operations Reduction 20 in net debt: ($14.6bn) 15 Cash flows from operations: 15 $23.5bn Other: ($1.4bn) 10 Acquisitions: ($0.9bn) 10 Tax: ($4.1bn) Interest: (
Slide 10: Balancing growth with capital returns
Balancing growth with capital returns • Record cashflows have reduced net debt to $4 billion Cash from operations • Oyu Tolgoi fully consolidated – accounting change means 2011 capex now expected to be ~$13 billion • Small to medium-sized M&A – Investment in value Prudent balance Capital Riversdale
Slide 11: We are poised to capture growth associated with higher standards of living
We are poised to capture growth associated with higher standards of living The inflection point is yet to be reached for many of our products Percentage of saturation level* Nickel Titanium Dioxide Crude steel Aluminium Copper Diamonds Borates 2,000 10,000 18,000 26,000 34,000 42,000 50,000 58,000 W
Slide 12: Riversdale offer will expand our coking coal exposure
If successful, Rio Tinto’s offer for Riversdale will expand our coking coal exposure Riversdale tenements in Moatize Basin ROM Riversdale Date of 1st production ownership production Status Benga Stage 1 5.3 Mtpa 65% 2H 2011 Construction Benga Stage 2 & 3 14.7 Mtpa 65% Pre-feasibility study Zambeze 4
Slide 13: Record year and strong growth prospects
Record year and strong growth prospects • Record earnings, EBITDA and operating cash flow • $12 billion of capital approvals in value adding growth • 20 per cent increase in ordinary dividend and $5 billion capital management programme • Strong balance sheet • Excellent growth prospects Cape Lambert
Slide 14: Breakdown of price variance
Breakdown of price variance Earnings impact from price $9,496 million ($m) 7,000 Traded Non-traded 5,949 6,000 5,000 4,000 3,000 2,000 1,589 1,163 1,000 164 182 -7 164 97 86 90 26 -7 0 -1,000 Copper Aluminium Gold Moly Other Iron ore Th coal Met coal Uranium Ind mins Diamonds Other 10 February 2011
Slide 15: Reconciliation of underlying to net earnings
Reconciliation of underlying to net earnings $m 2010 Underlying earnings 13,987 Gain on consolidation of Oyu Tolgoi LLC 531 Profits less losses on disposal of interests in businesses 174 Net impairment charges (836) Exchange differences and gains/(losses) on derivatives 429 Other 39 Net earnings 14,
Slide 16: Our portfolio has a long history of diversified returns
Our portfolio has a long history of diversified returns Rio Tinto EBITDA by product Percentage of EBITDA 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Energy Copper Iron ore Diamonds & Minerals Aluminium 10 February 2011 Rio Tinto 2010 full year result