Rio Tinto Plc · LSE:RIO
Rio Tinto — Shareholder Meeting (April 2009)
36 slides from Rio Tinto's shareholder meeting presentation, Apr 20, 2009
Slide 1: ASX cover letter for AGM presentation
Rio Tinto Limited 120 Collins Street Melbourne 3000 Australia Postal Address: GPO Box 384D Melbourne 3001 Australia T +61 (0) 3 9283 3333 F +61 (0) 3 9283 3707 For personal use only Company Announcements Office Australian Stock Exchange Limited SYDNEY NSW 2000 20 April 2009 Dear Sir/Madam The attach
Slide 2: Annual General Meeting London 15 April 2009, Sydney 20 April 2009
For personal use only Annual General Meeting London 15 April 2009 Sydney 20 April 2009
Slide 3: Chairman Paul Skinner
For personal use only Chairman Paul Skinner
Slide 4: New director
New director For personal use only Jan du Plessis, chairman designate September 2008 3
Slide 5: 2008 – a year of contrasts
2008 – a year of contrasts For personal use only US$ • Strong demand and prices until the fourth 350 quarter 300 • Rapid decline in economic activity towards the 250 end of the year 200 • Record underlying earnings of US$10 billion, up 38% 150 • Record cash flow from operations of US$20.7 100 billio
Slide 6: BHP Billiton pre-conditional offer
BHP Billiton pre-conditional offer For personal use only • Pre-conditional offer negated on value grounds • Offer withdrawn without pre-conditions being met • Chinalco 9% investment in 2008 supported our view on value Cape Lambert iron ore port, Australia 5
Slide 7: Strategic partnership with Chinalco
Strategic partnership with Chinalco For personal use only • Comprehensive solution to short/medium term financial challenges • Insurance against an extended downturn • Access to a major growth economy and its capital resources • Source of economic opportunity and value creation • Robust governance f
Slide 8: Rio Tinto Alcan – best assets in the sector
Rio Tinto Alcan – best assets in the sector For personal use only • Valuable low carbon energy generation • Integration synergies ahead of original targets • Outperforming competition in difficult markets • Well positioned for market recovery Shipshaw hydroelectric power, Quebec 7
Slide 9: A proven strategy
A proven strategy For personal use only • Maximising return from finding, mining and processing resources • Focus on large scale, long life, low cost assets of quality • Aim to be cash generative across the economic cycle • Ongoing portfolio rationalisation Hail Creek coal, Australia 8
Slide 10: Sustainable development
Sustainable development For personal use only • Central to our strategy • Careful management of social and environmental issues • Aim for zero harm to environment, communities and workplace • Sustainability remains important in economic downturn Promising future, Madagascar 9
Slide 11: Challenging global outlook
Challenging global outlook For personal use only • Difficult market conditions currently • Longer term fundamentals unchanged • China remains the key market driver • China’s stimulus package will drive investment • Global synchronised recovery will take time • Potential Chinalco partnership strength
Slide 12: Conclusion
Conclusion For personal use only • High quality assets, people and market position • Well positioned for future economic recovery 11
Slide 13: Tom Albanese, Chief executive
For personal use only Tom Albanese Chief executive
Slide 14: Safety is core to our business
Safety is core to our business For personal use only 5 4 • 80% improvement in AIFR • 74% improvement in LTIFR 3 All Injury Frequency Rate Per 200 000 hours worked 2 * 1 Lost Time Injury Frequency Rate 0 1998 2008 * Increase due to former Alcan sites reporting injuries in terms of Rio Tinto’s stricte
Slide 15: Results for 2008
Results for 2008 For personal use only • Underlying earnings up by 38% US$bn 10.3 10 • Underlying EBITDA up by 60% 7.3 7.4 • Maximising and conserving cash to pay down debt 5.0 5 • Project developments slowed • Taking extra time to optimise projects 2.3 1.4 0 '03 '04 '05 '06 '07 '08 Underlying earni
Slide 16: Product group results
Product group results For personal use only UNDERLYING EARNINGS • Aluminium - 12% higher in spite of Q4 price fall US$1.2 billion • Copper & Diamonds – lower prices, higher costs US$1.7 billion • Energy & Minerals – strong output, better prices US$2.9 billion • Iron ore – 146% higher for another rec
Slide 17: Strong footprint in Australia
Strong footprint in Australia For personal use only • Contribution to national wealth for more than 100 years • Base of significant operations • Invested about A$30 billion since 1998 • Large national benefit from China trade • Closer relationships can add greater value Pilbara Rail, Western Austral
Slide 18: Uncertain market outlook
Uncertain market outlook For personal use only US$ 350 • Prices at lowest levels in years 300 250 • Uncertainty driven by financial markets 200 • Chinese demand has weakened 150 100 • Economic stimulus may improve markets 50 0 • Rebuilding global trade critical January 2008 March 2009 Economist Meta
Slide 19: Divestments
Divestments For personal use only • US$3 billion from asset sales in 2008 • US$2.5 billion of divestments announced in 2009 • Continuing our established divestment programme Potash project, Argentina 18
Slide 20: Building for better times
Building for better times For personal use only • EXPLORATION: two major discoveries • TECHNOLOGY: leading the way to Mine of the Future™ • CARBON: investor in cleaner energy • PROJECT DEVELOPMENTS: remain vital to our future Resolution project, US 19
Slide 21: Major corporate developments
Major corporate developments For personal use only • Shareholder value paramount • Chinalco offers comprehensive solution • Protection against downside risk • Unlocking value from assets • While maintaining full control Chinalco aluminium smelter 20
Slide 22: A focus on the future
A focus on the future For personal use only • We have the right strategy for the times • Making the difficult decisions • Preserving options to resume growth • Making the right choices, in line with our strategy Uranium exploration, Namibia 21
Slide 23: Annual General Meeting 2009
Annual General Meeting 2009 For personal use only 20 April 2009 22
Slide 24: Resolution: receive financial statements and reports
Resolution 1 For personal use only To receive the financial statements and the reports of the directors and auditors for the full year ended 31 December 2008 23
Slide 25: Resolution: approval of the Remuneration report
Resolution 2 For personal use only Approval of the Remuneration report 24
Slide 26: Resolutions 3-7 Director elections
Resolutions 3-7 For personal use only Director elections 25
Slide 27: Resolution: election of Jan du Plessis
Resolution 3 For personal use only Election of Jan du Plessis as a director 26
Slide 28: Resolution: re-election of Sir David Clementi
Resolution 4 For personal use only Re-election of Sir David Clementi as a director 27
Slide 29: Resolution: re-election of Sir Rod Eddington
Resolution 5 For personal use only Re-election of Sir Rod Eddington as a director 28
Slide 30: Resolution: re-election of Andrew Gould
Resolution 6 For personal use only Re-election of Andrew Gould as a director 29
Slide 31: Resolution: re-election of David Mayhew
Resolution 7 For personal use only Re-election of David Mayhew as a director 30
Slide 32: Resolution: re-appointment of PricewaterhouseCoopers as auditors
Resolution 8 For personal use only Re-appointment of PricewaterhouseCoopers LLP as auditors of Rio Tinto plc and to authorise the Audit committee to set their remuneration 31
Slide 33: Resolution: non executive directors' fees
Resolution 9 For personal use only Non executive directors’ fees 32
Slide 34: Resolution: renewal of authority to buy back shares
Resolution 10 For personal use only Renewal of authority to buy back shares held by Rio Tinto plc 33
Slide 35: Resolution: constitution amendments and new articles of association
Resolution 11 For personal use only Amendments to the Rio Tinto Limited constitution and adoption of new Rio Tinto plc articles of association 34
Slide 36: Annual General Meeting 2009
Annual General Meeting 2009 For personal use only 20 April 2009 35