Rio Tinto Plc · LSE:RIO
Rio Tinto — UBS Australasia Conference 2018
14 slides from Rio Tinto's conference presentation, Nov 12, 2018
Slide 1: Notice to ASX
Notice to ASX For personal use only UBS Australiasia conferece – presentation 12 November 2018 Attached is a presentation to be given by J-S Jacques, chief executive, at the UBS Australiasia conference in Sydney today. Page 1 of 2
Slide 2: Contacts
For personal use only Contacts media.enquiries@riotinto.com www.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 Jesse Riseborough T +44 20 7781 1623 T
Slide 3: Delivering superior returns
For personal use only Delivering superior returns J-S Jacques, chief executive UBS Australasia Conference, Sydney 12 November 2018
Slide 4: Cautionary statements
2 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, includ
Slide 5: Safety and health come first
3 Safety and health come first For personal use only Fatality at Rio Tinto Fer et Titane in April 2018 AIFR vs Industry Fatal assault on a security contractor at Richards Bay Rio Tinto ICMM (23 companies) Minerals in July 2018 2.78 Fatality at Iron Ore Paraburdoo mine in August 2018 All injury frequ
Slide 6: Global macro indicators remain supportive
4 Global macro indicators remain supportive For personal use only Global PMIs have eased but remain in expansion Chinese growth slowing very gradually 10 65 8 YoY ytd % real 60 6 PMI Index 4 55 2 50 0 US Eurozone China Japan Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 45 GDP Construction GDP Ma
Slide 7: China supply-side reform and tightening environmental policy have driven structural change
China supply-side reform and tightening environmental 5 policy have driven structural change For personal use only Supply side reform Environmental policies Driving structural change Improved productivity and Policies focused on restoring Environmental protection profitability of Chinese steel profi
Slide 8: Our strategy will deliver value through the cycle
6 Our 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 ©2018,
Slide 9: Delivering superior returns for shareholders
7 Delivering superior returns for shareholders For personal use only 2018 cash returns to shareholders Interim 2018 returns to shareholders of $3.2 billion $ billion announced on 1 August 3.2 12.5 New share buy-back programme of $3.2 billion from coal disposal proceeds announced on 20 September 0.1
Slide 10: Strong cash flow from world-class assets
8 Strong cash flow from world-class assets For personal use only Copper & Energy & Iron Ore Aluminium Diamonds Minerals 67% 35% 45% 36% Margins Pilbara operations FOB Integrated operations EBITDA margin EBITDA margin EBITDA margin EBITDA margin Cash flows from Cash flows from Cash flows from Cash fl
Slide 11: Further strengthening our world-class portfolio
9 Further strengthening our world-class portfolio For personal use only Successful divestment programme. Since 2017: – Exiting thermal coal and coking coal assets c.$8bn of disposals – Lease and sale of wharf and land in Kitimat for $576 announced since 2017 Cost curve position, scale and expandabil
Slide 12: Sustaining capital and compelling growth
10 Sustaining capital and compelling growth For personal use only Capital expenditure profile Maintained sustaining capital guidance of $2.0 to $2.5 $ billion billion per year, including: ~6.5 – Iron Ore sustaining capex of ~$1 billion per year ~6.0 ~5.5 Pilbara replacement capital of ~$2.7 billion
Slide 13: High-return growth optionality
11 High-return growth optionality For personal use only Iron Ore Aluminium Copper Industrial Minerals Optimising the world’s premier iron Building optionality into the lowest Building the largest and highest Extensive exploration programme ore business cost bauxite and aluminium business quality cop
Slide 14: Our strategy will deliver value through the cycle
12 Our 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 ©2018,