Rio Tinto Plc · LSE:RIO
Rio Tinto — Macquarie Australia Conference 2017
14 slides from Rio Tinto's conference presentation, May 4, 2017
Slide 1: Notice to ASX: Presentation to Macquarie Australia Conference 2017
Notice to ASX Presentation to Macquarie Australia Conference 2017 For personal use only 4 May 2017 Rio Tinto chief executive J-S Jacques is presenting today at the Macquarie Australia conference in Sydney. The presentation is attached and will also be available at riotinto.com/presentations. Steve A
Slide 2: Macquarie Conference
For personal use only Macquarie Conference J-S Jacques – chief executive 4 May 2017 Sydney
Slide 3: Cautionary statements
Cautionary statements For personal use only 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, includin
Slide 4: Our value proposition
Our value proposition For personal use only Capital discipline and Team and performance Long-term strategy Cash focus shareholder returns culture World-class assets Value over volume Strong balance sheet Safety first Delivering >2% CAGR1 CuEq growth $2 billion cost savings over 2016/17 40-60% return
Slide 5: Safety comes first
Safety comes first For personal use only A history of continual improvement in safety Continued focus on Fatality Prevention, Illness and AIFR per 200,000 hours worked Injury Reduction and Catastrophic Event Prevention 1.4 Critical Risk Management (CRM) Programme – More than 1.3 million verification
Slide 6: Strong results delivered in 2016
Strong results delivered in 2016 For personal use only Robust financial performance Capital allocation Positioning for the long-term Operating cashflow of $8.5 billion Full year 2016 dividend of $3.1 billion Oyu Tolgoi underground approved in May Underlying earnings of $5.1 billion Share buy-back of
Slide 7: World-class assets delivering value
World-class assets delivering value For personal use only Iron Ore Aluminium Copper & Diamonds Energy & Minerals 63% 28% 35% 30% Margins Pilbara operations FOB Integrated operations Operating EBITDA Operating FOB EBITDA EBITDA margin EBITDA margin margin margin Cash flows from operations Cash flows
Slide 8: We aim to deliver $5 billion of free cash flow in productivity improvements
We aim to deliver $5 billion of free cash flow in productivity improvements over five years For personal use only Value Chain Exploration Major projects Mining Asset Processing Infrastructure Marketing management Broadening our cost saving programme to include productivity Opportunity to Opportunity
Slide 9: Continuing to shape our portfolio
Continuing to shape our portfolio For personal use only $7.7 billion1 disposals announced since 2013 Value delivered through divestments ($bn) January announcement of Coal & Allied divestment for up to $2.45 billion Up to 2.45 Proceeds in 2017: – Lochaber second tranche of $0.2 billion – now 3,208 r
Slide 10: Investing in growth projects of >15% IRR
Investing in growth projects of >15% IRR For personal use only Silvergrass – delivering high-grade low, phosphorus iron ore, with system benefits, for the Pilbara Blend On track for H2 2017, ~20Mtpa capacity Amrun – high-quality greenfield bauxite project. Advancing to schedule, 22.8 Mt/a1 capacity,
Slide 11: Disciplined allocation of strong cash flow
Disciplined allocation of strong cash flow For personal use only Cash flow 2016 Disciplined allocation of capital ($ million) ($ billion) 10,000 761 9,580 354 8,465 1.7 8,000 Total cash from asset 3.9* 6,000 disposals of $1.1bn 1.3 4,000 2,000 2.7 0 Net cash generated Sales of PP&E Disposals Cash av
Slide 12: Strategy will deliver value through the cycle
Strategy will deliver value through the cycle For personal use only Superior cash generation World-class assets Operating excellence Capabilities Portfolio Performance People & Partners Disciplined capital allocation Balance sheet strength Superior shareholder returns Compelling growth 11 | © Rio Ti
Slide 13: Delivering on our promises
Delivering on our promises For personal use only Strong operating cash flow of $8.5 billion Portfolio optimisation with divestments announced of $1.3 billion Investing in our three major growth projects Balance sheet strength with net debt reduced to $9.6 billion Shareholder returns of $3.
Slide 14: Macquarie Conference May 2017
For personal use only Macquarie Conference 4 May 2017 Sydney