Rio Tinto Plc · LSE:RIO
Rio Tinto — Barclays Metals & Mining Conference 2015
11 slides from Rio Tinto's conference presentation, Mar 23, 2015
Slide 1: The world's best aluminium business
23 March 2015 Barclays Metals & Mining Conference 2015 The world’s best aluminium business Alf Barrios, chief executive, Aluminium
Slide 2: We are transforming our business…
2 We are transforming our business… Cost savings Restructured portfolio $806 million 25% 33% aluminium alumina capacity sold, curtailed Operating cost reductions achieved by 31 December 2014 vs 2012 or closed since 2009 Increased bauxite exports Improved smelter cost position 80% From 2015 12 to 23
Slide 3: …and increasing our margins
3 …and increasing our margins EBITDA margin vs. peers Percentage 40% Rio Tinto 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% FY 2011 Q2'12 Q4'12 Q2'13 Q4'13 Q2'14 Q4'14 Note: Rio Tinto Alcan internal benchmarking for upstream businesses which includes adjustments to externally reported EBITDA for trading,
Slide 4: Well positioned to benefit long-term outlook – continued volatility in the near-term
4 Well positioned to benefit long-term outlook – continued volatility in the near-term Primary aluminium demand Primary aluminium balance and prices Million tonnes Million tonnes US$ per tonne 3.5 3,000 3.0 2,500 2.5 45 2.0 2,000 1.5 30 1.0 1,500 27 24 0.5 1,000 0.0 -0.5 500 39 -1.0 26 27 28 -1.5 -
Slide 5: Clear focused strategy - bauxite and first quartile smelters are key pillars
5 Clear focused strategy - bauxite and first quartile smelters are key pillars Bauxite First quartile smelters Competitive Low-cost, renewable advantage Industry-leading bauxite position energy portfolio Strategic focus Market-paced growth Cash generation Alumina supply and security Key enablers Com
Slide 6: Leading bauxite position driving value-accretive growth
6 Leading bauxite position driving value-accretive growth Leading bauxite position Global bauxite resources / reserves (Billion tonnes)1 Unrivalled Tier 1 assets 3.5 Resources Reserves • Largest bauxite position with interests in three of the world’s major bauxite mines 3.0 • Well located to supply
Slide 7: South of Embley project is a Tier 1 investment opportunity
7 South of Embley project is a Tier 1 investment opportunity Production: Mining costs: 22.8mtpa First quartile (~12mtpa replaces Expansion: North of Weipa tonnes) Options to 50mtpa Wenlock Ownership: 100% Rio Tinto First Production: Scope: 2018 Mine, port, infrastructure Andoom East Weipa South of E
Slide 8: Low-cost smelting business driving cash generation
8 Low-cost smelting business driving cash generation Most modern, low-cost assets in industry Aluminium cost curves Operating cost (US$ per tonne) • 80% in first cost quartile on aluminium cost curve1 3000 • ~50% of power needs from self- generated, low-cost, long-life hydro assets • ~80% of power u
Slide 9: The world's best aluminium business
9 The world’s best aluminium business Tier 1 assets in bauxite and smelting Clear focused strategy for each business Market-paced bauxite growth Driving cash generation from smelting business Balanced alumina position providing competitive security of supply Delivering industry-leading performance t
Slide 10: Aluminium: exchange rates, strong price premiums and cost improvements more than doubled earnings
10 Aluminium:(1) exchange rates, strong price premiums and cost improvements more than doubled earnings Underlying earnings 2013 vs 2014 US$ million (post tax) 1,500 3 1,248 168 247 1,103 17 (43) 1,000 377 (78) 557 500 - 2013 Price Exchange Energy & Flexed 2013 Volumes Cash cost Exploration & Tax &
Slide 11: The world's best aluminium business
11 The world’s best aluminium business Clear focused strategy: Bauxite and first quartile smelters are key pillars Bauxite Alumina Aluminium Industry-leading bauxite Sector-leading primary metal Provides competitive security position 2014 EBITDA margin of 25% of supply for our smelters Third party s