Slide 1: Tom Albanese Investor Briefing May 2012
Cape Lambert port, Western Australia Tom Albanese Investor Briefing May 2012 ©2012, Rio Tinto, All rights reserved
Slide 2: Cautionary statement
| 2 Cautionary statement This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited (“Rio Tinto”) and consisting of the slides for a presentation concerning Rio Tinto. By reviewing/attending this presentation you agree to be bound by the following conditions. Forward-looking statemen
Slide 3: Delivering exceptional operational and financial performance
| 3 Delivering exceptional operational and financial performance • Record underlying earnings, EBITDA and cash flows from operations in 2011 • Net earnings reduced by aluminium impairments • Industry leading organic growth programme underway • Acquisitions successfully completed creating further hig
Slide 4: Iron ore: Global growth options without equal
| 4 Iron ore: Global growth options without equal • Industry supply response to demand growth continues to be delayed • 283mtpa expansion progressing on budget and time for 2013 • Capital intensity in mid US$150s/t (mid US$130s/t equity share) for 353mtpa expansion • 353mtpa expansion includes 30mtp
Slide 5: Copper: recovery of copper grades expected second half of this year
| 5 Copper: recovery of copper grades expected second half of this year • Copper industry supply growth will remain challenging • Control of Ivanhoe secured with comprehensive financing plan • Oyu Tolgoi more than 70% complete with first commercial production in 2013 • Continued investment in brownf
Slide 6: Rio Tinto Alcan: clear pathway for transformation
| 6 Rio Tinto Alcan: clear pathway for transformation • Streamlining portfolio to a smaller but higher quality business • US$1bn of targeted EBITDA improvement • Focussed investment on the highest quality opportunities − Yarwun 2 refinery commissioning in mid 2012 Al − Kitimat smelter − South of Emb
Slide 7: Energy: recovery from significant weather events
| 7 Energy: recovery from significant weather events • Challenging operating conditions in Australia • Moatize Basin in Mozambique one of the largest undeveloped coking coal regions in the world • Phased development underway, with first coal from Benga to be exported this C quarter • Uranium an impo
Slide 8: Diamonds & Minerals: supply tightness reflected in price momentum
| 8 Diamonds & Minerals: supply tightness reflected in price momentum • Titanium dioxide fundamentals and outlook are strong • Steady growth in TiO2 earnings as long term contracts continue to unwind • Acquisition of 37% of Richards Bay Minerals • Diamonds strategic review underway Ti Titanium
Slide 9: Our strategy is consistent and unchanged
| 9 Our strategy is consistent and unchanged • To maximise total shareholder return by sustainably finding, developing, mining and processing natural resources • Invest in and operate large, long term, cost competitive mines and assets • Driven by the quality of each opportunity Change picture ©2012
Slide 10: Our belief in the long term demand story is unchanged
| 10 Our belief in the long term demand story is unchanged Demand for metals increases Global copper supply vs. demand outlook1 in line with increasing income (Mine output, kt Cu) 2011 population Expenditure per capita distribution World average US$ (2011 terms) 30000 income per capita 30% India 50
Slide 11: A sustainable strategy
| 11 A sustainable strategy • Increasing resource nationalism requires a new approach • Engagement and transparency are central to the way Rio Tinto works • Leadership in sustainable development is a competitive advantage Rehabilitation forests, Richard’s Bay, South Africa ©2012, Rio Tinto, All righ
Slide 12: Industry leadership through innovation
| 12 Industry leadership through innovation • Pioneering step-changes in technology • Planned expansion of driverless truck fleet from 10 to 150 trucks • Autonomous trains will be rolled out in the Pilbara • Tunnel boring system trials to commence at Northparkes in H2 2012 • NuWave™ sorting technolo
Slide 13: Balancing growth with returns to shareholders
| 13 Balancing growth with returns to shareholders • Strong balance sheet and regained single A credit rating Cash from operations • More than US$33bn of major capital projects underway • A rich portfolio of unapproved Investment Prudent project options in value balance Capital adding sheet returns
Slide 14: Executing our strategy
| 14 Executing our strategy • Strong balance sheet and sustainable long term progressive dividend • Delivering exceptional operational performance • Growing established operations • Identifying, acquiring and developing the next generation of tier one ore bodies • Leadership in exploration, innovati