Rio Tinto Plc · LSE:RIO
Rio Tinto — Bernstein Strategic Decisions Conference 2019
18 slides from Rio Tinto's conference presentation, Oct 1, 2019
Slide 1: Notice to ASX/LSE: Bernstein Strategic Decisions Conference
EXHIBIT 99.15 Notice to ASX/LSE Bernstein Strategic Decisions Conference 25 September 2019 Rio Tinto chief financial officer Jakob Stausholm is presenting today at the Bernstein Strategic Decisions Conference in London. The presentation is attached and will also be available at riotinto.com/presenta
Slide 2: Contacts
Contacts media.enquiries@riotinto.com riotinto.com Follow @RioTinto on Twitter Media Relations, United Kingdom Media Relations, Australia Illtud Harri Jonathan Rose M +44 7920 503 600 T +61 3 9283 3088 M +61 447 028 913 David Outhwaite T +44 20 7781 1623 Matt Chambers M +44 7787 597 493 T +61 3 9283
Slide 3: Bernstein Strategic Decisions Conference
Bernstein Strategic Decisions Conference Jakob Stausholm, CFO London, 25 September 2019
Slide 4: Cautionary and supporting statements
Cautionary and supporting statements 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, including but n
Slide 5: Sustainable development in action
Sustainable development in action Running a safe, Collaborating to Pioneering responsible and enable long term materials for human profitable business economic benefits progress 0.41 Taxes paid report 4 released Additional aluminium assets AIFR in H1 2019 undergoing ASI certification ‘Contracts with
Slide 6: Stable Chinese indicators
Stable Chinese indicators Global GDP & IP 8% Global economic growth Forecast* 6% – Global growth tracking at 2015/16 cyclical lows 4% – Trade policy uncertainty weighing on global industrial growth YoY – Major economy central banks becoming more 2% accommodative 0% 1Q15 1Q16 1Q17 1Q18 1Q19 1Q20 Chin
Slide 7: Robust iron ore and steel fundamentals
Robust iron ore and steel fundamentals >1Btpa steel production in China Above-average iron ore offtake at Chinese ports 170 0.50 Million tonnes per annum 1,100 160 0.40 1,050 150 0.30 1,000 140 950 0.20 130 900 0.10 850 120 0.00 800 110 750 100 China port offtake - 3 week rolling average delta from
Slide 8: Strong iron ore prices partly offset by challenging aluminium and copper market conditions
Strong iron ore prices partly offset by challenging aluminium and copper market conditions Iron Ore* (55% increase YoY) Aluminium** (12% decrease YoY) Copper** (5% decrease YoY) $/t $/t c/lb 120 2700 500 340 450 100 400 80 2200 350 290 300 60 250 40 1700 200 240 Jan 18 May 18 Sep 18 Jan 19 May 19 Se
Slide 9: Strong financial results
Strong financial results ($bn) H1 2019 H1 2018 Comparison Gross revenue 21.8 21.2 + 3% Underlying EBITDA 10.3 9.2 + 11% EBITDA margin (%) 47% 43% + 4pp Cash flow from operations* 7.2 5.2 + 39% Free cash flow* 4.7 2.9 + 64% Underlying earnings 4.9 4.4 + 12% Net earnings 4.1 4.4 -6% ROCE (%) 23% 19% +
Slide 10: Disciplined investment of capital
Disciplined investment of capital Capital expenditure profile H1 2019 capex of $2.4 billion $ billion – Sustaining capex of $1.2 billion – Development capex of $1.2 billion ~6.5 ~6.5 ~6.0 Pilbara replacement capital 5.4 includes Koodaideri and Robe River Development capital delivers 2% CAGR (2019 –
Slide 11: A strong balance sheet
A strong balance sheet Net debt Increase in reported net debt reflects operating $ billion cash flows of $7.2* billion, net of: – Payment of dividends of $6.8 billion 15 14.1 13 – Share buy-back of $1.0 billion 12.9 11.3 11 10.0 – Capex of $2.4 billion 9.3 9.3 9 8.0 9.6 – Tax on divestments of $0.9
Slide 12: Delivering superior returns
Delivering superior returns 2019 cash returns paid to shareholders* Interim 2019 returns to shareholders of $3.5 billion $ billion announced Paid – Interim dividend of $2.5 billion or 151 US cents per Paid 1.0 12.0 share paid in September 2019 2.5 – Special dividend of $1.0 billion or 61 US cent
Slide 13: Strong base for future growth and profitability
Strong base for future growth and profitability Consistent Attractive growth financial discipline opportunities Safety is our #1 priority $12bn 2% CuEq Paid* to shareholders in 2019, Annual growth rate to cash generative assets and 2023 from broad pipeline strong balance sheet of growth opportunitie
Slide 14: Appendices
Appendices 25 September 2019
Slide 15: Delivering quality iron ore through system blending
Delivering quality iron ore through system blending Mines Port Terminals Products Mesa J RVL Cape RVF Mesa A Lambert HIY A Yandicoogina Silvergrass West Angelas HIY Cape PBL Lambert Hope Downs 1 PBF B Nammuldi Fe Alumina Marandoo Brockman 4 PBL Parker PBF Mt Tom Price Point Paraburdoo Silica Phospho
Slide 16: Improving Iron Ore system performance
Improving Iron Ore system performance Protecting the Pilbara Blend Product quality and Mine sequencing challenges and deficit in overburden removal customer relationships Additional waste movement programme – 2019 material movement increase – Expected cost of ~$80 million in 2019 Focus on rail capac
Slide 17: Critical infrastructure progresses at Oyu Tolgoi
Critical infrastructure progresses at Oyu Tolgoi Above ground Shafts & below ground 1 2 3 Mine development infrastructure hard infrastructure Mine dry building Load commissioning of Jaw Crusher Lateral mine footprint development Mine dry and control centre Shaft 5 sinking to 1.2km 24,470 eqm o
Slide 18: Schedule and cost ranges for Oyu Tolgoi are driven by four key factors
Schedule and cost ranges for Oyu Tolgoi are driven by four key factors Footprint development Location of ore Panel boundary 1 Mid access drives 2 3 4 productivity handling infrastructure transitions One of the best undeveloped copper resources in Shaft #4 the world Assessing a number of mine design
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