Rio Tinto Plc · LSE:RIO
Rio Tinto — Investor Day (November 2022)
104 slides from Rio Tinto's investor day presentation, Nov 30, 2022
Slide 1: Notice to ASX: Investor Seminar presentation
Notice to ASX 30 November 2022 For personal use only Investor Seminar presentation Attached is the presentation to be given at the investor seminar today in London at 8.00am (GMT) / 7.00pm (AEDT) by Rio Tinto Chief Executive Jakob Stausholm and other executives. The presentation slides and the live
Slide 2: Please direct all enquiries to
Please direct all enquiries to Contacts media.enquiries@riotinto.com For personal use only Media Relations, UK Media Relations, Australia Matthew Klar Matt Chambers M +44 7796 630 637 M +61 433 525 739 David Outhwaite Jesse Riseborough M +44 7787 597 493 M +61 436 653 412 Media Relations, Americas S
Slide 3: Investor Seminar 30 November 2022
For personal use only Investor Seminar 30 November 2022
Slide 4: Cautionary and supporting statements
Cautionary and supporting statements For personal use only This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited (together with their subsidiaries, Form 20-F filed with the United States Securities and Exchange Commission (the “SEC”) or Form 6-Ks “Rio Tinto”). By accessing/atten
Slide 5: Cautionary and supporting statements (cont.)
Cautionary and supporting statements (cont.) For personal use only Rio Tinto’s Iron Ore Mineral Resource and Ore Reserve estimates on Slide 47 were reported in Rio Tinto’s The Mineral Resource estimates for the Rhodes Ridge JV on Slide 54 were reported in Rio Tinto’s 2020 2021 Annual Report released
Slide 6: Agenda
Agenda For personal use only GMT AEDT Topic Presenter 08:00 – 08:10 19:00 – 19:10 Culture share Angela Bigg, President, Diavik Diamond Mine 08:10 – 08.20 19:10 – 19:20 Progressing with purpose Jakob Stausholm, Chief Executive Isabelle Deschamps, Chief Legal Officer Panel 1: Our culture journey 08:20
Slide 7: Culture share
Culture share For personal use only Angela Bigg, President, Diavik Diamond Mine Diavik Diamond Mine, Yellowknife 5
Slide 8: For personal use only
For personal use only ©2022, Rio Tinto, All Rights Reserved 6
Slide 9: For personal use only
For personal use only ©2022, Rio Tinto, All Rights Reserved 77
Slide 10: For personal use only
For personal use only ©2022, Rio Tinto, All Rights Reserved 8
Slide 11: For personal use only
For personal use only ©2022, Rio Tinto, All Rights Reserved 9
Slide 12: For personal use only
For personal use only ©2022, Rio Tinto, All Rights Reserved 10
Slide 13: For personal use only
For personal use only ©2022, Rio Tinto, All Rights Reserved 11
Slide 14: Progressing with purpose
Jakob Stausholm For personal use only Progressing with purpose Rio Tinto Iron and Titanium Quebec Operations – Sorel Tracey 12
Slide 15: Partnering for shared success; progressing projects; new approach
For personal use only Partnering for Progressing projects A new approach Deepening impact shared success to open up growth to cultural heritage of the Safe Production System 13
Slide 16: Best Operator, Impeccable ESG credentials, Excel in development
For personal use only Best Impeccable Excel in Operator ESG credentials development Social licence 14
Slide 17: Social licence
For personal use only Co-management of Country Modernising and rebuilding relationships Decarbonising our RTFT operations Relationship reset Yinhawangka Aboriginal Corporation New agreements with Yindjibarndi Aboriginal C$737 million partnership with the A new agreement with the Government co-design
Slide 18: Finding better ways to provide the materials the world needs
For personal use only Finding better ways to provide the materials the world needs 16
Slide 19: Panel session: Our culture journey
Panel session 1 For personal use only Our culture journey Isabelle Deschamps, Bold Baatar, Kellie Parker Moderated by James Martin 17
Slide 20: Transparency, Dialogue, Trust
For personal use only Transparency Dialogue Trust 18 ©2022, Rio Tinto, All Rights Reserved
Slide 21: Engagement scores improving
Engagement scores improving 1 For personal use only 73 72 71 71 Avg. prior 2 years Oct'21 Apr'22 Sept'22 ©2022, Rio Tinto, All Rights Reserved 1Percentage score for employee survey question regarding employee happiness in the workplace 19
Slide 22: Market fundamentals
Vivek Tulpule For personal use only Market fundamentals Tokyo, Japan 20
Slide 23: Global trends driving commodity demand
Global trends driving commodity demand For personal use only 2 Key drivers of global economy1 Total commodity demand by 2035 Recycling share of total demand <2°C scenario Current to 2035 (<2°C scenario) Copper 160 equivalent basis 140 Aluminium 28% to 35% 2035 120 Growth 100 2021 1.8-3.2% pa 80 Copp
Slide 24: Energy trilemma to energy tripod
Energy trilemma to energy tripod For personal use only A shift in the energy market paradigm is taking place… Low-cost renewables (needed to reach climate goals) will increase Energy energy security reducing scope for Security price disruption over time US Inflation Reduction Act provides ~$200 bill
Slide 25: Steel decarbonisation will affect the value of iron ores
Steel decarbonisation will affect the value of iron ores For personal use only Iron ore products – Steelmaking CO2 emissions (BF/BOF)1 Industry decarbonisation efforts are 2.6 focusing on direct reduction and liquid Higher value from liquid iron making in green transition CO2 intensity (tCO2/t steel
Slide 26: Hydro-based aluminium even more attractive
Hydro-based aluminium even more attractive For personal use only Chinese aluminium smelter cost sensitivities (Real US$/t 2021) Operating cost curve2 Over half of current Chinese RT Canada China smelting produces >14t CO2 per tonne aluminium vs. global average of 12t CO2 per 720 0% 50% 100% tonne of
Slide 27: Technology solutions
Nigel Steward For personal use only Technology solutions Hydropower, the Saguenay 25
Slide 28: A strong global R&D footprint
A strong global R&D footprint… For personal use only Kennecott Copper Aluminium Technology Laboratory Solutions (ATS France) US Borax RTIO Dampier labs ELYSIS Industrial Queensland Research Research and and Development Centre Development Center Aluminium Technology Bundoora Technical Solutions (ATS
Slide 29: Complemented by partnerships
…complemented by partnerships For personal use only ©2022, Rio Tinto, All Rights Reserved 27
Slide 30: Disciplined technology roadmap
Disciplined technology roadmap For personal use only Health & Safety ESG Growth Carbon Productivity 9 projects 19 projects 32 projects 21 projects 54 projects Reducing frontline Reducing water Discovering new Green steel and low Maximise value from exposure to hazards consumption orebodies carbon pr
Slide 31: Transition and the global energy mix
Transition and the global energy mix For personal use only Next 2030-2035 2035-2045 2045+ ~10 yrs Wind and solar Thermal and Breakthrough batteries Fusion mechanical energy and small modular storage for reactors renewables firming ©2022, Rio Tinto, All Rights Reserved 29
Slide 32: Firming and storage options
Firming and storage options For personal use only Mechanical Electrochemical Thermal 0.200 0.200 0.200 Levelised cost of energy supply ($/kWh) 0.180 0.180 0.180 0.160 0.160 0.160 0.140 0.140 0.140 0.120 0.120 0.120 0.100 0.100 0.100 0.080 0.080 0.080 0.060 0.060 0.060 0.040 0.040 0.040 0.020 0.020 0
Slide 33: Hydrogen requires abundant low-cost green energy and lower capital costs
Hydrogen requires abundant low-cost green energy and lower capital costs For personal use only 2500 Rio Tinto investment in Electric Hydrogen start-up to lower cost of hydrogen 2000 $579 Potential hydrogen uses: - Reductant for zero-carbon steel making Capital intensity ($/kW) 1500 67% - Ilmenite re
Slide 34: Fleet electrification will require time and technology breakthroughs
Fleet electrification will require time and technology breakthroughs For personal use only Battery pathways Current state Drill Charge Dozer Loader Truck Diesel fuel Trial stage 2024 2022-2035 Biodiesel and biofuels Early deployment 2026 2028-2045 At scale Electrification Diesel Cable power Battery
Slide 35: Breakthrough technologies create new revenue streams
Breakthrough technologies create new revenue streams For personal use only Green aluminium Processing waste Carbon mineralisation Rio Tinto Fer et Titane NutonTM technology pilot plant, Bundoora, Australia Tamarack, Minnesota Low carbon aluminium Critical minerals from waste Copper from waste Storin
Slide 36: Green steel pathways: range of potential technology options
Green steel pathways: range of potential technology options available For personal use only Estimated time to Commercial Scale CO2e (/tLS) Ore Suitability (using renewable power) Chemical 0 0.4 0.8 1.2 1.6 2.0 2.4 56 58 60 62 64 66 68 70 Current BF-BOF Optimisation 1-20 years Optimised Nat Gas DRI/H
Slide 37: Our technology journey
Our technology journey For personal use only - Creation of Chief Scientist’s - Growing capabilities in - Ramp-up of solar and wind - Providing firmed zero carbon Office – driving R&D battery materials deployment to meet an energy to support 24/7 integration and delivery increasing proportion of our
Slide 38: Decarbonisation – our pathway
Mark Davies and Alf Barrios For personal use only Decarbonisation – our pathway Kennecott, US 36
Slide 39: Processing accounts for the majority of our carbon footprint
Processing accounts for the majority of our carbon footprint Our scope 1 and 2 emissions For personal use only Electricity Anodes and Process Diesel Other2 (purchased and generated)1 reductants heat 2021 equity basis 8.8 31.1 Mt CO2e Mt CO2e 5.1 2.1 Mt CO2e 4.3 Mt CO2e ~80% processing ~20% mining Mt
Slide 40: Executing our ambitious plan towards net zero by 2050
Executing our ambitious plan towards net zero by 2050 For personal use only Six large abatement programmes… …with Nature-based Solutions part of the plan Pacific Operations repower Renewables 8.4 Biodiesel Electrified fleets Renewables 4.2 Process heat Diesel 4.2 2021 CO2e emissions equity ELYSIS2 s
Slide 41: Pursuing an abatement pathway to reach our 2030 target
Pursuing an abatement pathway to reach our 2030 target Mt CO2e emissions by major abatement programmes – equity share For personal use only 2018 CO2e emissions baseline 32.5 Emissions reductions to 2021 (1.4) 2021 CO2e emissions 31.1 0.0 Growth 1.0 5.8 Abatement programmes (13.4) 8.4 Other3 required
Slide 42: Path to 2030: select renewable and process heat projects underway
Path to 2030: select renewable and process heat projects already underway For personal use only Renewables Process heat Self-delivered Market-based Pilbara RBM Boyne Smelter RTFT QLD 3% of group 5% of group 13% of group 3% of group alumina assets emissions1 emissions emissions emissions 14% of group
Slide 43: Increased role of Nature-based Solutions
Increased role of Nature-based Solutions to support our ambitious targets For personal use only Two-pronged approach to secure high-quality credits Assessments show scale and favourable economics Development run-rate first four projects (preliminary) A Mt CO2e ~1.0 mt Developing Nature-based Solutio
Slide 44: Scaling up Nature-based Solutions close to our assets
We are scaling up Nature-based Solutions close to our assets For personal use only Generating carbon credits and positive outcomes for people and nature For example – a 500 hectare community-driven project: - 640,000 seedlings from local village nurseries - 2,300 community members involved - Tree sp
Slide 45: Supply chain emissions: scope 3
Supply chain emissions: scope 3 For personal use only Marine and 2021 Procurement Logistics Downstream customers equity basis 554 Mt CO2e Minerals Aluminium Iron Ore 22 9 523 Copper Partnering to Accelerating Supporting customers on decarbonise the transition to their decarbonisation journey end-sta
Slide 46: Supporting our customers in their decarbonisation journeys
Supporting our customers in their decarbonisation journeys For personal use only Multi-commodity, low-carbon and critical minerals Providing traceability to the end consumer - Prioritising growth in materials needed for the transition - Responding to customer traceability, transparency needs - Compr
Slide 47: Supporting our customers – steel decarbonisation
Supporting our customers - steel decarbonisation For personal use only 1 2 3 4 5 6 Blast Furnace Pilbara Beneficiation BioIronTM H2 DRI + Melter High-Grade DRI Iron Ore Portfolio Optimisation Optimising current Upgrading our Ironmaking with Ironmaking with Entry to high-grade Bringing high- technolo
Slide 48: Iron ore
Iron ore For personal use only Simon Trott Pilbara, Western Australia
Slide 49: A global portfolio with products for today and tomorrow
A global portfolio with products for today and tomorrow For personal use only Unrivalled global resource portfolio Strategic differentiators Resources for a compelling product suite Global Mineral Resources & Ore Reserves1 Billions of dry tonnes, published grades Pilbara Infrastructure Iron Ore Comp
Slide 50: Delivering in 2022
Delivering in 2022 For personal use only 2022 Outcomes Looking forward Record material movement. Strong H2 production Best operator Strong performance at IOC We approach 2023 with momentum Safe Production System delivering 120Mt of Pilbara mines commissioning Excel in Unlocked Western Range Project
Slide 51: Momentum building quarter on quarter
Momentum building quarter on quarter For personal use only Mine production ranges by quarter1 2023 focus areas Next 5 years (2019 to 2022, Mt/a) 360 2022 Ramp-up new mines Next tranche of mine Mines 340 Projected Drive productivity with SPS developments 2022 Asset reliability and pit health Low-cost
Slide 52: Performance uplift across early SPS deployments
Performance uplift across early SPS deployments For personal use only 6% Up to 46% at deployed sites improvement at deployed sites Employee satisfaction All Injury Frequency Rate Tom Price Brockman 4 19% 33% AHS equipment utilisation Weekly total material movement 14% 9% HG production daily rate Mon
Slide 53: Costs reflect investment in asset health and input prices
Costs reflect investment in improving asset health and mining sector input prices For personal use only 2022 Forecast vs 2021 Unit cost history Sector input prices Economic (US$/t FOB) 2x 12% Uncontrollable Pilbara Iron Ore Peers1 Diesel Exchange Rate 30 5 – 10% >7%2 Materials & Labour Inflation 26
Slide 54: Improved mine portfolio that maximises Pilbara Blend
We are delivering an improved mine portfolio that maximises Pilbara Blend For personal use only Mine Capital Intensity Shipments by Product (US$ / tpa) (%) $160 $140 26 26 20 $120 Western Range 5 6-12 $100 (Greater Paraburdoo) 9 Gudai-Darri $80 Hope Downs 1 Sustaining1 $60 Robe Valley Brockman 4 69
Slide 55: Western Range represents our first co-designed mine
Western Range represents our first co-designed mine with Traditional Owners For personal use only Strong ties with China’s leading steel maker Strengthen Pilbara Blend Tier 1 asset Agreed new Western Range JV with China 25Mt/a of Pilbara Blend process capacity through High grade 165Mt @ 62.0% Fe1, l
Slide 56: Rhodes Ridge will underpin our competitive position
Rhodes Ridge will underpin our competitive position for decades to come For personal use only Large, high grade and compact Perfect for Pilbara Blend Iron Ore Resources and Reserves1 Area Impurities (Billions of tonnes) (km2) Resources Including: Rhodes Rhodes Ridge 5.7Bt @ 62.3% Fe 6.7 1,800 km2 Ri
Slide 57: System outlook and guidance
System outlook and guidance For personal use only 360Mt 2023 Guidance1 Shipments: 320 – 335Mt (100% basis) 335Mt Unit costs: $21.0 - $22.5/t (0.70 A$:US$) 345Mt Sustaining capital: ~$1.8 billion Decarbonisation investment: $0.3 billion 320Mt Mid Term Guidance1 Shipments: 345 - 360Mt (100% basis) 202
Slide 58: Our journey
Our journey For personal use only Commissioned: Operational Performance: Operational Performance: Most valued Iron Ore Robe Valley & Gudai-Darri Strong system performance H2 Wider and deeper SPS rollout business: Early benefits of SPS Next tranche of replacement Best operator Partnerships: Ramp up p
Slide 59: For personal use only
RioTinto Ajuo asn feuosied 10)
Slide 60: Panel session: Best Operator
Panel session 2 For personal use only Best Operator Arnaud Soirat, Simon Trott, Kellie Parker Moderated by Isabelle Deschamps Weipa operations, Queensland
Slide 61: Safe Production System (SPS)
Safe Production System (SPS) For personal use only Best operator Strong, Front line stable customer- Building a lasting competitive advantage with our assets focused people. We want to empower them to safely run support assets that are in control, capable and performing better than any of our compet
Slide 62: Site-by-site progression: deployments in sites
Site-by-site progression: 30 deployments in 16 sites (end of November) For personal use only Tom Price Brockman 4 Yandi West Angelas Rail Marandoo Hope Downs Iron Ore sites deployed Amrun Grand Baie Arvida Laterriere Kitimat Bell Bay Yarwun Aluminium sites deployed Iron Ore Company Kennecott Canada
Slide 63: 2022 performance uplift at deployment sites
2022 performance uplift at deployment sites For personal use only Safety People 8% ↑ 3% ↑ Year on year People Survey scores improvement in AIFR higher than the rest of their site Equipment Variability utilisation ↓ 7% 5% ↑ Improved online time Process variability when compared to the reduction same
Slide 64: Improvements across safety, people and productivity
Improvements across safety, people and productivity For personal use only SPS impact Kennecott concentrator IOC concentrator Amrun fixed plant Safety AIFR AIFR AIFR Practices and training 42% improvement YTD 44% improvement YTD 29% improvement YTD have improved safety* performance compared to 2021 c
Slide 65: Performance uplift across early SPS deployments in Iron Ore
Performance uplift across early SPS deployments in Iron Ore For personal use only 6%1 Up to 46%1 at deployed sites improvement at deployed sites Employee satisfaction All Injury Frequency Rate Tom Price Brockman 4 19% 33% AHS equipment utilisation Weekly Total Material Movement 14% 9% HG production
Slide 66: Global priorities in 2023
Global priorities in 2023 For personal use only New sites Total Deployment sites 2021 2022 2023 Sites* Iron Ore 2 5 2-6 9-13 Aluminium 1 6 1 8 Copper 1 0 0 1 Minerals 1 0 1 2 Total 5 11 4-8 20-24 Priorities in 2023: - Rolling out at new sites and going - Identify key Kaizens (problem solving deeper
Slide 67: Aluminium
Ivan Vella For personal use only Aluminium Kemano tunnel, British Columbia
Slide 68: Positioned to meet customers' needs in energy transition
Positioned to meet customers' needs in energy transition For personal use only Energy transition demand Material innovation – Scandium Commercial value proposition Aluminium consumption from green applications Aluminium yield strength Mt Mega Pascals, for selected aluminium alloy series Strength 8.4
Slide 69: Privileged low-carbon hydro resources in North America
Privileged low-carbon hydro resources in North America For personal use only Global aluminum production by energy source 2023 global aluminium smelters energy cost curve Mt $/t Average carbon Other China Russia Rio Tinto intensity1 (t CO2/t Al) 2,500 Self gen Hydro 1.0 1.7 3.9 1.6 2 Grid Hydro2 6.0
Slide 70: Current market conditions are short term and cyclical
Current market conditions are short term and cyclical For personal use only Smelter operating margin and global inventories as Raw materials are high this cycle in relation to LME weeks of consumption Carbon materials and caustic soda costs as percentage of aluminium and 75th percentile smelter marg
Slide 71: Sustainable competitive advantage through the cycle
Sustainable competitive advantage through the cycle For personal use only Short-term and cyclical market conditions 1 2 Grow North America Repower Pacific low-carbon aluminium Aluminium smelters Four Lenses To think strategically and tactically about our 4 3 aluminium business Optimise integrated Ma
Slide 72: Best Operator focus to protect margins and unlock growth
Best Operator focus to protect margins and unlock growth For personal use only Alma Safe Production System Stable performance and continuous production creep Production Kt, Rio Tinto equity share 550 500 450 400 350 Grande Baie, Saguenay Lac Saint Jean 300 Implementation of best practice rituals foc
Slide 73: Returning Boyne and Kitimat to Best Operator
Returning Boyne and Kitimat to Best Operator For personal use only Boyne smelter Kitimat Production Production Kt, Rio Tinto equity share Kt, Rio Tinto equity share +23% 500 500 +148% 450 450 400 +7% 400 +9% 350 350 300 300 250 250 200 200 150 150 100 100 50 50 0 0 2022F 2023F 2024F 2022F 2023F 2024
Slide 74: Strengthening our green aluminum leadership
Strengthening our green aluminum leadership For personal use only Innovation and Partnerships Green energy AP60 VAP and recycling ELYSIS™ Repowering coal-based assets in Lowest carbon intensity technology Arvida and Laterriere recycling Assessing pathways to accelerate partnership with governments a
Slide 75: Playing a bigger role in North America's energy transition
Playing a bigger role in North America's energy transition For personal use only Largest mining and metal producer in North America Copper equivalent basis, 2021 actual production* Rio Tinto has the foundation to Rio Tinto grow in North America Freeport Nutrien Well-positioned industrial sites formi
Slide 76: Our aluminium journey
Our aluminium journey For personal use only Commissioned: Operational performance: Low-carbon growth: Industry leadership: Laterrière recycling furnace Kitimat and Boyne recoveries AP60 expansion Industry leader in providing the Alumina refineries stabilisation Unlocking green energy green aluminium
Slide 77: Panel session: Excel in Development
Panel session 3 For personal use only Excel in Development Mark Davies, Bold Baatar, Simon Trott Moderated by Kellie Parker Oyu Tolgoi underground, Mongolia
Slide 78: Strengthening our partnership in Mongolia
Strengthening our partnership in an attractive investment destination For personal use only • Mongolia remains highly prospective for resources, with a young, resilient and skilled population • January agreement delivered opportunity to reset relationship and commitment to continued dialogue and par
Slide 79: Supplying US-made copper and critical minerals
Supplying US-made copper and critical minerals For personal use only World-class producing assets Market leading low carbon, Advantaged exploration portfolio with significant growth pipeline low water leaching technology leveraging +100 years of fieldwork Focused on domestic US production An excitin
Slide 80: Capital allocation and financials
Peter Cunningham For personal use only Capital allocation and financials Brisbane Integrated Operations Centre
Slide 81: Disciplined allocation of capital remains at our core
Disciplined allocation of capital remains at our core For personal use only 1 Essential capex Integrity, Replacement, Decarbonisation Further cash Compelling 2 returns to Ordinary dividends growth shareholders 3 Iterative cycle of Debt management ©2022, Rio Tinto, All Rights Reserved 79
Slide 82: Disciplined investing for growth and decarbonisation
Disciplined investing for growth and decarbonisation For personal use only Capital expenditure profile (Rio Tinto share) $billion Lowered original 2022 guidance due to stronger ~9.0-10.0 US dollar and rephasing of decarbonisation ~9.0-10.0 and development projects ~8.0-9.0 7.4 ~7.0 Ambition to grow
Slide 83: Ambition to invest up to $3 billion in growth per year
Ambition to invest up to $3 billion in growth per year For personal use only Committed capex Advanced projects Rio Tinto share of growth capital Represents the Group’s economic Oyu Tolgoi Simandou investment in key growth projects ~45% through 2023-2025 Studies progressing towards approval in period
Slide 84: Building a portfolio of options
Building a portfolio of options For personal use only Exploration & Evaluation (E&E) spend $billion Expenditure rising in line with development of project portfolio 1.0 Includes $250 million per year of central 0.9 greenfield exploration 0.7 Fully expensed via the P&L Progressing studies on Rincon,
Slide 85: Energy transition drives additional long-term value
Energy transition drives additional long-term value For personal use only Total commodity demand by 2035* Key drivers of future scenarios Growth options <2°C scenario (up to $3bn / annum) Copper equivalent basis 2035 Li Cu - Rincon - Oyu Tolgoi 2021 - Other Lithium - Kennecott Growth - Resolution -
Slide 86: Robust and broad-based approach to decarbonisation
Robust and broad-based approach to decarbonisation For personal use only Our approach to decarbonisation evaluation Decarbonisation components 2030 CO2e $7.5bn emission abatement %1 Capex % 1. Commercial solutions ~40% 0% 2 3 - Repowering Pacific smelters Materiality Maturity - Grid connected renewa
Slide 87: Value accretive decarbonisation at a modest carbon price
Value accretive decarbonisation at a modest carbon price For personal use only Renewables Alumina process heat Pilbara: Phase 1 – solar plus on-grid battery storage QAL double digestion* – 200MW solar plus 200MWh of on-grid battery storage – Energy efficient digestion process solutions delivered 202
Slide 88: Attractive EBITDA margin and ROCE throughout the cycle
Attractive EBITDA margin and ROCE throughout the cycle For personal use only 60% 60% 40% 40% Net operating costs YoY change 20% 20% EBITDA margin / ROCE Revenue YoY change YoY change 0% 0% EBITDA margin -20% -20% ROCE -40% -40% -60% -60% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 20
Slide 89: Balance sheet is strong
Balance sheet is strong For personal use only $billion 2022 2021 Disciplined approach is unchanged, we intend to H1 FY maintain it throughout the cycle Balance sheet strength is an asset. Offers resilience and Net cash generated from operating activities1 22.2 25.3 creates optionality Capital expend
Slide 90: Attractive dividends remain paramount
Attractive dividends remain paramount For personal use only Shareholder returns1 of 40-60% of underlying earnings on average through the cycle Consistent six-year track record of Pay-out ratio (%) shareholder returns 100 Our second highest interim dividend ever in 2022 ($4.3 billion) 80 60% average
Slide 91: We will maintain our capital discipline
We will maintain our capital discipline For personal use only - Attractive return on capital - Replicate best demonstrated - Exceed best demonstrated - Best in class operating operating performance operating performance performance - Resilient cash flows through the cycle - Generate returns on R&D -
Slide 92: For personal use only
RioTinto Ajuo asn feuosied 10)
Slide 93: Appendix
For personal use only Appendix ©2022, Rio Tinto, All Rights Reserved 91
Slide 94: Product group level guidance
Product group level guidance For personal use only 2023 2023 Production Guidance Unit cost guidance3 Iron ore 320 – 335Mt1 Pilbara Iron ore ($/tonne) $21.0 – $22.5 shipments (100% basis) Copper Copper C1 (US cents/lb) 160 – 180 Mined Copper 550 – 600kt Refined Copper 180 – 210kt Aluminium Bauxite 54
Slide 95: Decarbonisation abatement programmes
Decarbonisation abatement programmes For personal use only Programme Description & Key Sites Funding mechanism Example project - Economics Pacific Operations Renewables: smelters - Long-term market contracts - Commercial solutions achieved through government partnerships and Repower Boyne | Tomago -
Slide 96: Rio Tinto Energy Development
Rio Tinto Energy Development is dedicated to developing and partnering for renewables For personal use only Isal 45 energy industry professionals recruited Kitimat to focus solely on delivering new Oyu IOC & Tolgoi renewable supply to Rio Tinto’s operations Saguenay Kennecott & Resolution Globally r
Slide 97: Industry cost headwinds offset by elements within our control
Industry cost headwinds are being offset by elements within our control For personal use only Increases in work effort is reducing as new mine capacity is introduced Material movement (Bt) Effective flat haul (km) Work index (Bt.km) 1.2 1.3 1.3 x 11 14 15 15 = 17 19 20 1.0 12 2018 2021 2022F 2024F 2
Slide 98: Sustaining investments are improving asset health
Sustaining investments are improving asset health For personal use only Sustaining capital by year Investment in our assets continues (US$bn) (US$bn) 0.3 Uplift in decarbonisation investment 1.8 1.7 Improved asset health lifts production 1.2 Facilities upgrades with improved safety and cost performa
Slide 99: Decarbonising through partnerships and innovation in Canada
We are decarbonising through partnerships and innovation in Canada For personal use only Partnering with the Government of Innovating to find new ways to deliver Canada to decarbonise RTFT and boost the emerging materials the world needs critical minerals processing C$737 million investment over eig
Slide 100: Iron Ore / Steel Global production & emissions
Iron Ore / Steel Global production & emissions 2021 Rio Tinto production & emissions (equity basis) Includes Pilbara iron ore and IOC operations For personal use only Total Upstream material moved Mining Shipping Ore-based steel Scrap-based steel PRODUCT 10,000Mt 2,400Mt 277Mt 55Mt CO2e 5.4Mt CO2e 1
Slide 101: Copper Global production & emissions
Copper Global production & emissions 2021 Rio Tinto production & emissions For personal use only Total Upstream material moved Mining Shipping Primary refined copper Secondary copper PRODUCT 12,000Mt 4,300Mt 100Mt 5Mt CO2e <0.1Mt CO2e 20.5Mt 0.2Mt 9.5Mt 600t / t Cu @0.6% Cu @0.6% Cu EMISSIONS 70Mt C
Slide 102: Aluminium Global production & emissions
Aluminium Global production & emissions 2021 Rio Tinto production & emissions For personal use only Total Secondary Upstream material moved Mining Shipping Alumina Primary Aluminium Aluminium PRODUCT 1,000Mt 360Mt 54Mt 15Mt CO2e 1.9Mt CO2e 130Mt 7.9Mt 67Mt 3.2Mt 26Mt 16t / t Al @47% Al2O3 @49% Al2O3
Slide 103: Common acronyms and definitions
Common acronyms Definitions AHS Automous Haulage System EC European Commission Mtpa Million tonnes per annum RTIO Rio Tinto Iron Ore Calculated The levelised marginal cost of For personal use only abatement abatement at a zero carbon price Marginal Abatement Cost carbon price AIFR All Injury Frequen
Slide 104: For personal use only
RioTinto Ajuo Ssn feuosied 10)