Slide 1: 2007 Annual Results
2007 Annual Results 13 February 2008 a
Slide 2: Cautionary statement
Cautonary statement This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited (“Rio Tinto”) and comprises the slides for a presentation concerning Rio Tinto. By reviewing/attending this presentation you agree to be bound by the following conditions. Forward looking statements • This
Slide 3: Presentation outline
Presentaton outline Paul Skinner Highlights Tom Albanese Overview of performance Guy Elliott Financial results Tom Albanese Growth guidance and outlook Questions & answers 13 February 2008 Rio Tinto 2007 Full Year Results 3
Slide 4: Paul Skinner, Chairman
Paul Skinner Chairman
Slide 5: 2007 — records across the board
2007 — records across the board · Record underlying EBITDA of $13.9 billion, up 11% · Record underlying earnings of $7.4 billion, up 1% · Record cash flow from operations of $12.6 billion, up 15% · Record capital investment of $5.0 billion, up 25% · Record new capital commitments of $8 billion* anno
Slide 6: Rio Tinto's market outlook is positive
Ro Tinto’s market outlook is positive · Strong Chinese and Indian growth — largely unaffected by western markets · Reflects multi-decade trend towards stronger global minerals demand · Impact of unsettled credit markets likely to be limited in the sector · Strong China-led demand increases for most
Slide 7: Pre-conditional offer rejected on value grounds
Pre-conditional offer rejected on value grounds · Unsolicited and pre-conditional acquisition offer received from BHP given careful consideration and rejected on value grounds · Offer fails to recognise Rio Tinto’s outstanding prospects · Insufficient incentive to deviate from proven path to value c
Slide 8: Tom Albanese, Chief Executive Officer
Tom Albanese Chief Executive Officer
Slide 9: Safety is core to our business
Safety is core to our business Decline in injury frequency rates 1998 — 2007 ___ 5i • 80% improvement in AIFR • 78% improvement in LTIFR 4 - 3- All In jury Fre quenc / Rate 2- 1 - 0- Lost Time Injury Frequency Rate 98 99 00 01 02 03 04 05 06 07 Source: Rio Tinto. Data excludes Alcan. 13 February 200
Slide 10: Record underlying earnings and EBITDA
Record underlying earnings and EBITDA ¦ Underlying EBITDA ¦ Underlying earnings Rio Tinto 2007 Full Year Results 10 2006 $m 2007 $m o/ /o change Underlying EBITDA 12,524 13,920 +11% Underlying earnings 7,338 7,443 +1% Cash flow from operations 10,923 12,569 +15% · Earnings accelerate · Second half e
Slide 11: Copper: high quality assets continue to deliver
Copper High quality assets continue to deliver · Record EBITDA Copper, gold and molybdenum markets remain very strong Refined copper and gold sales at record levels By product credits reduce unit cash costs to less than zero Record investment in exploration and evaluation of $141 m (net of tax) as p
Slide 12: Iron ore: an outstanding mining business
Iron ore An outstanding mining business Record EBITDA and earnings Exceptionally strong demand outlook - Great backdrop to ongoing price negotiations Record shipments from record production Planning to treble output through greenfield and brownfield developments Projects delivered on time and on bud
Slide 13: Aluminium: premier assets in the industry
Aluminium Premier assets in the industry Record production and earnings Continued strong demand Recent power-related production cutbacks in China and southern Africa Stronger raw material costs and RMB appreciation supporting current pricing and outlook Mean acquisition has transformed the Aluminium
Slide 14: Energy: uranium earnings treble
Energy Uranium earnings treble Realised uranium prices strengthened in second half of 2007 Plans to double uranium production by 2015 Strong demand outlook for thermal and coking coal Queensland operations able to take up full port and rail allocation in today’s strong markets $1 billion Kestrel cok
Slide 15: Diamonds & Minerals: investing for future growth
Diamonds & Minerals Investing for future growth Record earnings and production at high margin Diavik mine $563m approval of Diavik underground development Argyle underground diamond project back on track Stronger revenues for borates and Ti0 2 from growing Asian markets Madagascar ilmenite project i
Slide 16: Guy Elliott, Chief Financial Officer
Guy Elliott Chief Financial Officer
Slide 17: Volumes and prices generate record underlying earnings
Volumes and prices generate record underlying earnings $m 8,000 — 7,338 1,364 (403) 516 (218) (140) (163) (82) (57) (201) (309) (202) 7,443 6,000 - 4,000 - 2006 Price Fx Vols CPI Mining infl’n Freight /Demurrage Energy Other Cash Costs Non Cash Expl’n Eval’n Tech Tax/ 2007 Other 1 1. Includes Alcan
Slide 18: Costs are under control
Costs are under control 1 Half on half cash cost movements < 1) 1 2.4% 1.6% Hi 2007 H2 2007 · IPT post tax earnings improvement in 2007 of $256 million · Inflation in mining inputs continues (2007 vs 2006), particularly in Australia ( 3 ) · Mining labour rates up 8% · Contract labour up 12% · Consum
Slide 19: Record cash flow supports our investments
Record cash flow supports our investments Cash flow ash flow Capital expcapitalexpenditure enditure 0 4 8 12 $bn 04 8 12 $bn 04 05 06 07 0 04 05 06 07 08 F 09 F Dividends from equity accounted units Cash flow from consolidated operations Sustaining Brownfield Greenfield Cash flow from consolidated o
Slide 20: Well balanced $40 billion loan facility
Well balanced $40 billion loan facility extending out five years Debt is competitively priced at US LIBOR +35 bps on average Floating USD LIBOR — each 0.5% movement in LIBOR will increase/decrease post tax annual interest cost by approximately $158m Facility 1 Amount Maturity Term Loan Facility A $1
Slide 21: Asset sales programme is underway
Asset sales programme is underway Greens Creek $750 million sale announced Assets with a value of approximately $30 billion under review Likely asset sales of $15 billion or more $10 billion targeted for 2008 Formal processes underway Rio Tinto Alcan Packaging Kintyre Rio Tinto Alcan Engineered Prod
Slide 22: Multi decade progressive dividend policy
Multi decade progressive dividend policy delivers higher cash returns to shareholders CD At least CO £Z co ^_ CD Q. O CO z> 200 ^+25% +20% — ^CAGR J At least +20% >140% 150 “+3t%” increase since 2005 100 50 0 2005* 2006 2007 2008 2009 *2005 excludes special dividend of $1.5 billion CAGR is compound
Slide 23: Tom Albanese, Chief Executive Officer
Tom Albanese Chief Executive Officer
Slide 24: China is the new force in commodity demand
China is the new force in commodity demand Source: AME for aluminium, copper and iron ore. 2001-2006 oil data source is BP Statistical Review of World Energy 2007 Note: Consumption data for aluminium, copper and iron ore represents “apparent” consumption rather than actual consumption and is determi
Slide 25: Direct trade effects on China from a US slowdown are expected to be small
Direct trade effects on China from a US slowdown are expected to be small Modelling suggests Chinese GDP would fall by less than 1 % if US demand were to slip to recessionary levels Domestic demand remains the primary contributor to GDP Source: Global Insight estimates, China Customs Statistics 13 F
Slide 26: Market outlook suggests stronger forward prices
Market outlook suggests stronger forward prices for aluminium and iron ore 160 150 140 130 Iron ore 120 110 Aluminium 100 Nickel Oil 90 Copper 80 0 5 10 15 20 25 30 35 Months forward Source: a) Iron ore — average of analyst prices, based on Australian fines FOB benchmark price to Asia b) Aluminium,
Slide 27: Outstanding position across aluminium, iron ore and copper
Rio Tinto has an outstanding position across aluminium, iron ore and copper Current Position Growth Position Cost Position a Industry Ranking b Projects a Reserves and resources a,c,e, Iron ore • First quartile costs • Number 2 in seaborne iron ore • Conceptual pathway to over • 16.6 billion tonnes
Slide 28: Advanced stage near term high quality projects
Advanced stage near term high quality projects 2008 2012 2011 2009 2010 Quebec QIT upgrade $500m Ore carriers Cape Lambert to 80mtpa Cape Lambert to 180mtpa Hope Downs South Hope Downs Hope Downs 4 Oyu Tolgoi* Mesa A PRC potash Cortez Hills Bingham ERA extension Argyle u/g Brockman 4 Rössing extensi
Slide 29: Strong forecast growth in total production
Strong forecast growth in total production Notes: · Production is total attributable production. Figures for each company are based on estimated yearly production levels multiplied by long term analyst consensus prices. Total production volume for each company is rebased to 100 for 2008. · Commoditi
Slide 30: Delivering today, strongly positioned for growth
Delvering today, strongly positioned for growth in the future · Record underlying earnings and cash flow · Record production levels in many key products · Alcan deal has created aluminium industry leader · Record investment in organic growth options · Outstanding pipeline of opportunities · Proven c
Slide 31: 2007 Annual Results
2007 Annual Results 13 February 2008
Slide 32: Iron Ore product group growth projects
HANDOUT SLIDE Iron Ore product group growth projects Pilbara operations All operations are estimated to be within the first quartile on the cost curve Investment Production * 77% represents the weighted average ownership based on production from Hope Downs and Yandicoogina. Rio Tinto operated expans
Slide 33: Aluminium product group growth projects
HANDOUT SLIDE Aluminium product group growth projects 49% 49% 46.7% 50% 60% 100% 100% 100% 80% 20% 51% 51% 50% 100% 10% 100% Guinea Ghana Madagascar Oman Quebec Alucam Alumar Kitimat Iceland Gove III Saudi Arabia Saudi Arabia Abu Dhabi Sarawak Coega Yarwun II CapEx $2.3bn CapEx $0.2bn CapEx $1.8bn C
Slide 34: Copper product group growth projects
HANDOUT SLIDE Copper product group growth projects 100% 100% 100% 55% 40% 10% 100% 10% 80% Rio Tinto Share Pebble Grasberg UG Resolution KUCC extension Sulawesi Oyu Tolgoi Northparkes Eagle La Granja 2014 2013 2012 2011 2010 2009 2008 Capex and production are on a 100% basis. Investment Production A
Slide 35: Iron ore expansions maintain momentum
HANDOUT SLIDE Iron ore expansons maintain momentum CAGR is compound annual growth rate. On an attributable basis the CAGR between 2008 and 2015 is 11.0% based on attributable production of 168Mt in 2008 and 348Mt in 2015. Source: Rio Tinto 2008 Annual Plan 13 February 2008 Rio Tinto 2007 Full Year R
Slide 36: Multiple growth options in bauxite and alumina
HANDOUT SLIDE Multple growth options in bauxite and alumina CAGR is compound annual growth rate Source: Rio Tinto 13 February 2008 Rio Tinto 2007 Full Year Results 36
Slide 37: Strong growth in aluminium to 2015
HANDOUT SLIDE Strong growth in aluminium to 2015 Source: Rio Tinto 13 February 2008 Rio Tinto 2007 Full Year Results 37
Slide 38: Copper projects deliver
HANDOUT SLIDE Copper projects delver CAGR is compound annual growth rate * Rio Tinto plans; ** Expansion case — assumes Rio Tinto exercises all options to 46% and that Mongolian Government takes a 34% stake; *** Northern Dynasty Minerals website Nov 07 presentation — Pebble West open pit production;
Slide 39: Modelling 2008 earnings
HANDOUT SLIDE Modelling 2008 earnings Copper 324c/lb +/-1 0c/lb 112 Aluminium 120c/lb +/-1 0c/lb 566 Iron ore — lump benchmark 88c/dltu +/-10% 457 A $84USc +/-10c 588 C $93USc +/-10c 218 US$ LIBOR +/-0.5% 158 Source: Rio Tinto 13 February 2008 Rio Tinto 2007 Full Year Results 39
Slide 40: Breakdown of price variance
HANDOUT SLIDE Breakdown of price variance 663 600- $m 400- 200- g2 155 138 137 g3 69 6 3 8 .99 50 -5 0- Source: Rio Tinto 13 February 2008 Rio Tinto 2007 Full Year Results 40
Slide 41: Breakdown of volume variance
HANDOUT SLIDE Breakdown of volume variance $m 500 400 300 200 100 0 Copper Aluminium* Gold Moly Iron ore Coal Diamonds Other Total 208 11 172 -72 136 11 53 -3 516 * Alcan earnings are not included in the volume variance Source: Rio Tinto 13 February 2008 Rio Tinto 2007 Full Year Results 41