Rio Tinto Plc · LSE:RIO
Rio Tinto — 2018 Global Metals, Mining & Steel Conference
14 slides from Rio Tinto's conference presentation, May 15, 2018
Slide 1: Delivering superior returns
Delivering superior returns J-S Jacques, chief executive 2018 Global Metals, Mining & Steel Conference Bank of America Merrill Lynch, 15 May 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: Continuing to deliver superior returns
3 Continuing to deliver superior returns EBITDA of $18.6 billion, margin of 44% in 2017 Reshaping the portfolio with divestment proceeds of $2.7 billion in 2017 - Further divestments of ~$5 billion announced to date in 2018 Investing in high-return growth: $2.5 billion in 2017 - Silvergrass co
Slide 4: Delivered ~50% of sector cash returns in 2017
4 Delivered ~50% of sector cash returns in 2017 2017 cash returns across the diversified miners4 Allocation of cash generated2 – 2017 US$bn Peer average3 <$8bn of total cash returns from peers 16% 1 49% 8.2 44% 4.4 23% 19% 16% 1.5 21% 1.0 0.6 12% Rio Tinto Peer 1 Peer 2 Peer 3 Peer 4 Sustaining cape
Slide 5: Supportive global macro, but with inflation and volatility
5 Supportive global macro, but with inflation and volatility PMIs remain elevated 65 60 55 50 45 US Eurozone China Japan 40 2016 Jan 2016 Jul 2017 Jan 2017 Jul 2018 Jan Increased volatility 40 30 20 10 0 2016 Jan 2016 Jul 2017 Jan 2017 Jul 2018 Jan CBOE Market Volatility Index Source: CEIC, Rio Tint
Slide 6: Safety and health come first
6 Safety and health come first Fatality at Iron & Titanium in April 2018 Continuing history of improvement in AIFR Focusing on fatality elimination in part through the Critical Rio Tinto ICMM (23 companies) Risk Management programme which continues across the 1.56 Group Reducing injuries through tar
Slide 7: Building strength across the business
7 Building strength across the business Resilient group EBITDA margins… … with ROCE1 that continues to outperform its peers 2 5 year average 2017 17% 13% 11% 8% Peer average3 Peer average3 4 5 5 Source: Rio Tinto, Company filings, Bloomberg, Metals Bulletin 1 Defined as tax adjusted EBIT / (consolid
Slide 8: Further value creation
8 Further value creation Delivering mine-to-market Investing in Tier 1 organic growth Active portfolio management productivity $1.5bn additional free cash 2% annual CuEq ~$11bn divestments1 flow per year from 2021 growth over next 5 years Disciplined acquisition strategy 1 Divestments announced sinc
Slide 9: A clearly defined productivity programme
9 A clearly defined productivity programme $1.5bn productivity opportunity in 2021 Productivity levers ($5bn cumulative, 2017-2021) Impact of productivity programme on ROCE1 20% Best practice 17% Partnering 11% with our suppliers Data & technology 3 Iron Ore 2017A 2017A 2017PF 2 Aluminium Energy & M
Slide 10: High-return growth optionality
10 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 11: Tier 1 growth within our world-class portfolio
11 Tier 1 growth within our world-class portfolio 2025 iron ore cost curve 2025 aluminium cost curve Grande Baie Kitimat Laterrière Alma Koodaideri 2030 copper cost curve 2025 bauxite cost curve Resolution Oyu Tolgoi Amrun Source: Rio Tinto (bauxite), Wood Mackenzie (all others). Koodaideri and Reso
Slide 12: Capital rotation is positioning Rio Tinto for the future
12 Capital rotation is positioning Rio Tinto for the future Continuous portfolio review c.$11bn of disposals – Focusing on higher long-term returns Cost curve position, scale and expandability announced since 2014 Core – Successful divestment programme portfolio – Exiting coal – European smelters Th
Slide 13: A disciplined capital allocation framework
13 A disciplined capital allocation framework 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 Reserv
Slide 14: Unrivalled platform for superior value creation
14 Unrivalled platform for superior value creation Delivering mine-to-market Investing in Tier 1 organic growth Active portfolio management productivity $1.5bn additional free cash 2% annual CuEq ~$11bn divestments1 flow per year from 2021 growth over next 5 years Disciplined acquisition strategy 1
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