Rio Tinto Plc · LSE:RIO
Rio Tinto — FY2011 Earnings Presentation
20 slides from Rio Tinto's earnings presentation, February 2012
Slide 1: 2011 full year results
2011 full year results February 2012 Analyst Handout RioTinto © 2012, Rio Tinto, All Rights Reserved
Slide 2: Cautionary statement
©2011, Rio Tinto, AlRights Reserved 2 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 co
Slide 3: Underlying earnings 2010 vs 2011
Underlying earnings 2010 vs 2011 ©2011, Rio Tinto, AllRights Reserved 3 Record underlying earnings $ millions 25,000 20,000 Le = 15,000 10,000 5,000 0 13,987 6,675 (998) (502) (376) (249) (2,096) (796) (96) 15,549 2010 Price Exchange Volume — Inflation Energy Cashcosts_ Explor'n& Interest, Tax 2011
Slide 4: Net earnings reduced by impairment
©2011, Rio Tinto, AllRights Reserved 4 Net earnings reduced by impairment Reconciliation of underlying to net earnings $ millions 18,000 16,000 14,000 12.000 40,000 8,000 6,000 4,000 2,000 0 r T + 15,549 (9,290) 187 (67) (342) (201) 5,626 Underlying Impairment Profits on disposal Net exchange & Defe
Slide 5: Cash cost performance driven by rising input prices, lower grades and weather
©2011, Rio Tinto, AllRights Reserved § Cash cost performance was driven by rising input prices, lower grades and weather events Breakdown of cash cost variance $ millions Other Input production prices and and one- other inflation $514 M offs $330 M Site transition and readiness $546 M Weather relate
Slide 6: 2011 Cash flows
2011 Cash flows US$ billions 40 35 increase Other: ($1.66 Espo Not ineSrost ($6.6bn) ° ee Tax: ($6.2bn) 25 Dividends: ($2.2bn) Buy-back: ($5.5bn) 20 ay o Acquisitions: 1s operations: ($6.1bn) $27.4bn 10 Capex: ($12.3bn) 5 o Inflow Outfiow Record cash flow generation ©2011, Rio Tinto, AllRights Reser
Slide 7: Iron ore
©2011, Rio Tinto, AIRights Reserved 7 Iron ore Movement in underlying earnings 2010 vs 2011 $US millions (274) 187 1) es Te) ay as 12,853 10,189 FY, 2010 Price Fx Vols CPI Energy Other cash = Expl'n Eval'n Other FY,2011 * Record global iron ore shipments of 239mt/a despite first half of year weather
Slide 8: Aluminium
Aluminium ©2011, Rio Tinto, AllRights Reserved 8 Movement in underlying earnings 2010 vs 2011 $US millions : 574 aS § (27) (20) a2 “FY,2010 "Price Fx Vols CPI Energy | Othercash ExplnEvalin Other | —-FY,2014 Tight physical markets offset by macroeconomic concerns resulted in average prices rising by
Slide 9: Copper
©2011, Rio Tinto, AllRights Reserved Copper Movement in underlying earnings 2010 vs 2011 $US millions > oe (45) 168) (660) 0) (182) 2,530 a 4,932 FY.2010 Price Fx Vols CPI Energy | Other cash Expln Evan’ Other | -FY,2011 + Lower grades at Kennecott Utah Copper, Escondida and Grasberg as previously a
Slide 10: Energy
Energy ©2011, Rio Tinto, AlRights Reserved 10 Movement in underlying earnings 2010 vs 2011 $US millions rs 2A} —_ ‘ my (20) » —=— rT) 1,187 1.074 FY,2010 "Price | Fx ~—Vols.—~—SsCOPL Energy | Other cash ExplnEvaln Other | FY.2011_— Lower volumes following adverse weather conditions in the first half
Slide 11: Diamonds & Minerals
Diamonds & Minerals ©2011, Rio Tinto, All Rights Reserved 11 Movement in underlying earnings 2010 vs 2011 $US millions 1) (72) (39) __ FY, 2010 Price Fx Vols CPI Energy Othercash ExplnEvaln — Other FY.2011 Higher prices and improved market conditions for all products TiO, pricing reflects existing m
Slide 12: Other
Other ©2011, Rio Tinto, ARights Reserved 12 Interest, FX Sales Cash Ept'n Non tax& $millions FY, 2010 _ price Inflation Vols Energy Costs Aval'n Cash other FY,2011 Intersegment (15) Bs = = = = as — 55 40 Other operations 237 72 44 (21) (83) (99) = = (240) (120) Central exploration (net) (52) (1) = =
Slide 13: Additional Information
Additional Information RioTinto © 2012, Rio Tinto, All Rights Reserved 13
Slide 14: Reconciliation of underlying earnings to net earnings
©2011, Rio Tinto, AllRights Reserved 14 Reconciliation of underlying earnings to net earnings $m Underlying earnings Impairment charges net of reversals 2014 2010 15,549 13,987 (9,290) (739) Profits on disposal of interests in businesses 167 174 Gain on consolidation of Oyu Tolgoi - 445 Loss after t
Slide 15: Earnings reconciliations
Earnings reconciliations ©2011, Rio Tinto, AllRights Reserved 15 2011 Energy Resources of Australia US$m Earnings per ERA press release (A$54m) (56) Increase depreciation of closure asset (14) Tax and unwinding of discount 1 Less: Minority interests 24 Other (8) Underlying earnings as reported by Ri
Slide 16: Breakdown of price variance
©2011, Rio Tinto, AlRights Reserved 16 Breakdown of price variance Earnings impact from price variance $6,675 million $US million 4,000 5 3,784 Traded Non-traded 3,500 4 3,000 2,500 + 2,000 + 1,500 4 1,000 4 663 500 386 gia: of a Copper Aluminium — Gold Other Ironore = Theoal = Metcoal_ Uranium = In
Slide 17: Breakdown of volume variance
Breakdown of volume variance Earnings impact from volumes $502 million $US millions 300 -300 -400 181 36 ©2011, Rio Tinto, AlRights Reserved 17 -333 Copper Aluminium 246 Gold Moly Iron ore 7” Coal 12 37 Industrial Diamonds Other minerals RioTinto 17
Slide 18: Provisional pricing
Provisional pricing Open Provisional shipments pricing effect (million Ibs) (US$m) 31 341 Dec Dec 2011 2010 2011 2010 146 217 (58) 132 33 24 (2) 12 2 29 (1) (1) 181 270 (61) 143 ©2011, Rio Tinto, AllRights Reserved 18 * 2010: driven by the 28% increase in copper 3 month forward price between the end
Slide 19: Variance analysis methodology
Variance analysts methodology ©2011, Rio Tinto, All Rights Reserved 19 + Price = Change in commodity price x prior year sales volumes « Exchange = (Change in exchange rates x Prior year cost of sales) + Relative movements in exchange gains and losses on working capital * Inflation = Inflation rate x
Slide 20: Modelling earnings
Modelling earnings ©2011, Rio Tinto, All Rights Reserved 20 2011 average Impact on full year underlying earnings Earnings sensitivity price/rate 10% Change ($m) Copper 400c/lb +/-40c/lb 340 Aluminium $2,395/t +/-$240/t 510 Gold $1,571/oz +/-$157/oz 70 Iron ore +/-10% 1,720 Coal* +/-10% 280 AS 103 Us