Rio Tinto Plc · LSE:RIO
Rio Tinto — Shareholder Meeting (April 2012)
20 slides from Rio Tinto's shareholder meeting presentation, Apr 19, 2012
Slide 1: 2012 annual general meeting
2012 annual general meeting London | 19 April 2012
Slide 2: Jan du Plessis, Chairman
Jan du Plessis Chairman RioTinto
Slide 3: Highlights of 2011
Highlights of 2011 Underlying results • Record underlying earnings of US$ billions US$15.5bn 30 • Record cash flow from operations of 25 US$27.4bn 20 • Net earnings of US$5.8bn reduced 15 10 by aluminium impairment 5 • Dividend increased by 34% 0 2007 2008 2009 2010 2011 • US$7bn share buy-back comp
Slide 4: A sustainable strategy
A sustainable strategy • Invest in and operate, large, long- term, cost-competitive mines and businesses • Portfolio regularly under review to achieve the best value for our stakeholders • Sustainable development is core to what we do Rehabilitation forests, Richard’s Bay, South Africa
Slide 5: Outlook
Outlook • Short-term volatility but we are well prepared to weather any storms • Long-term growth fundamentals remain strong • Demand for many of our products is expected to double over the next 20 years Shanghai, China
Slide 6: In summary
In summary • An outstanding year for Rio Tinto • Well positioned to meet long-term growth in global demand • We are grateful to all of our stakeholders for their ongoing support Pilbara, Western Australia
Slide 7: Tom Albanese, Chief executive
Tom Albanese Chief executive
Slide 8: Safety
Safety Injury frequency rates 2002–2011 Per 200,000 hours worked 2.5 2 1.5 1 0.5 0 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 Lost time injury frequency rate All injury frequency rate Safety briefing
Slide 9: Our year
Our year • Record performance during challenging times • Ensuring business resilience by tackling rising costs and striving for productivity gains • A great track record of new project delivery and excellent operational performance Miners at Oyu Tolgoi, Mongolia
Slide 10: Iron ore: record production, shipments and earnings
Iron ore: record production, shipments and earnings • US$12.9bn underlying earnings • Production and shipment records in the Pilbara • Major expansion well underway • Solid progress at Simandou Fe Iron
Slide 11: Rio Tinto Alcan: second half margin squeeze
Rio Tinto Alcan: second half margin squeeze • US$442m underlying earnings • Industry margins impacted by lower prices and higher input costs • Focused strategy will reshape the business – on track to deliver cost and productivity improvements Al Aluminium
Slide 12: Copper: recovery of copper grades expected this year
Copper: recovery of copper grades expected this year • US$1.9bn underlying earnings • Copper market finely balanced and sensitive to supply disruptions • Lower volumes in 2011 from dip in grades at all three major operations • Investment in world-class copper projects Cu • New financing package for
Slide 13: Energy: recovery from significant weather events
Energy: recovery from significant weather events • US$1bn underlying earnings • Coal prices volatile with global disruptions to supply and demand • Coal and uranium operations in Australia impacted by weather • Successfully completed acquisitions of Riversdale in Mozambique and Hathor in Canada C Co
Slide 14: Diamonds & Minerals: supply tightness reflected in price momentum
Diamonds & Minerals: supply tightness reflected in price momentum • US$252m underlying earnings • Earnings from Iron & Titanium doubled in 2011 • Review of diamonds business due to scale • Signed potash joint venture and plan to double stake in RBM to 74% Ti Titanium
Slide 15: Consistent strategy
Consistent strategy • Sector leadership means superior returns and value for all our stakeholders • Unrivalled growth options and demonstrated track record of developing major projects Oyu Tolgoi, Mongolia
Slide 16: The future is growth
The future is growth • Our view of long-term demand remains positive • Billions of people are moving towards a metals-intensive stage of development • We are at the heart of the debates about resources, sustainability and growing expectations Growth in emerging economies
Slide 17: Industry leadership through innovation
Industry leadership through innovation • Pioneering step-changes in technology • Planned expansion of driverless truck fleet from 10 to 150 trucks • Further options for automation • Innovation is about real benefits to the bottom line Mine of the FutureTM
Slide 18: Sustainable development
Sustainable development • Central to the way we work, wherever we operate • Sustainable development is a competitive advantage • Global Health Award for furthering the prevention of malaria HIV/AIDS in Guinea • US$85m investment in education and training programme in Mongolia Simandou project
Slide 19: Conclusion
Conclusion • 2011 was an excellent year • Our advantages are many – exceptional performance – strong expansion options – leadership in innovation and sustainable development – consistent strategy delivering shareholder value
Slide 20: 2012 annual general meeting
2012 annual general meeting London | 19 April 2012