Rio Tinto Plc · LSE:RIO
Rio Tinto — Bernstein Pan European Strategic Decisions Conference 2018
12 slides from Rio Tinto's conference presentation, Sep 26, 2018
Slide 1: Delivering superior returns
Delivering superior returns J-S Jacques, chief executive Bernstein Pan European Strategic Decisions Conference; London, 26 September 2018
Slide 2: Cautionary statements
2 Cautionary 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 not limited to
Slide 3: Safety and health come first
3 Safety and health come first 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 frequency rate per 200,000
Slide 4: Global macro indicators remain supportive
4 Global macro indicators remain supportive Global PMIs have eased but remain in expansion Chinese growth slowing very gradually 65 10 8 YoY ytd % real 60 6 PMI Index 55 4 2 50 US Eurozone China Japan 0 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 45 Aug-17 Nov
Slide 5: 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 Supply side reform Environmental policies Driving structural change Improved productivity and Policies focused on restoring Environmental protection profitability of Chinese steel profitability and reducing
Slide 6: Our strategy will deliver value through the cycle
6 Our strategy will deliver value through the cycle 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, Rio Tinto, All Rights
Slide 7: Delivering superior returns for shareholders
7 Delivering superior returns for shareholders 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 1.0 Paid 0.6 2.2 Total c
Slide 8: Strong cash flow from world-class assets
8 Strong cash flow from world-class assets 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 flows from operations: $
Slide 9: Productivity programme offsetting cost headwinds
9 Productivity programme offsetting cost headwinds Post-tax mine-to-market (M2M) productivity programme $ billion (free cash flow) 1.1 $0.3 billion mine-to-market free cash flow (net of cost headwinds) delivered in H1 2018 – Cost headwinds from Aluminium and Energy & (0.2) Minerals raw materials (ca
Slide 10: Sustaining capital and compelling growth
10 Sustaining capital and compelling growth 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 includes Koodaideri de
Slide 11: High-return growth optionality
11 High-return growth optionality 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 copper development and hi
Slide 12: Our strategy will deliver value through the cycle
12 Our strategy will deliver value through the cycle 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, Rio Tinto, All Rights
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