Slide 1: Sam Walsh, Chief executive
25 February 2013 2012 results Market Strategy Projects Sam Walsh Chief executive
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 statements
Slide 3: 2012 highlights
3 2012 highlights • Strong underlying earnings and cash flows from operations − Record iron ore volumes; recovery in copper grades during second half − Lower prices and price volatility across most commodities − Stronger currencies, input cost pressures especially in Australia • Net loss following a
Slide 4: Positive momentum in China to be sustained into 2013
4 Positive momentum in China to be sustained into 2013 China indicators remain positive • Some positive short term signals 103 54 − China recovery 102 52 101 100 50 − Shallower Eurozone recession 99 98 48 − Gradual recovery in the US 97 46 Mar 11 Sep 11 Nov 11 Mar 12 Sep 12 Nov 12 Jan 11 May 11 Jul
Slide 5: A consistent strategy
5 A consistent strategy • Maximise total shareholder return • Invest in and operate large, long-life, low-cost, expandable operations • Run the business as owners • Manage our capital wisely • Improve performance from our operations Bingham Canyon ©2013, Rio Tinto, All Rights Reserved
Slide 6: Pursuing greater value for shareholders
6 Pursuing greater value for shareholders Refocusing the organisation − Focus, discipline, accountability − Stronger systems Improving operations − $5 billion cumulative operating cost reduction over 2013 and 2014 − Productivity improvements Delivering approved growth projects Reinforcing capital al
Slide 7: Targeting $5 billion cumulative reduction in operating cash costs by end of 2014
7 Targeting $5 billion cumulative reduction in operating cash costs by end of 2014 Cash cost reduction target • Sustainable annual cash cost US$ billion, base = 2012 cash operating cost base decrease of $3 billion by end of 2014 4.0 − Assumes constant operating conditions 2.0 − Includes overhead red
Slide 8: Capital expenditure is being prioritised on the highest quality projects
8 Capital expenditure is being prioritised on the highest quality projects Approved capital expenditure • Capex programme managed within US$ billion boundaries of single A credit rating, 20 dividend policy and other returns to shareholders 15 • Average sustaining capex reduction of >$1 billion in 20
Slide 9: Our growth programme is across regions, products and brownfield/greenfield
9 Our growth programme is across regions, products and brownfield/greenfield Kitimat Oyu Tolgoi Utah Copper Resolution Simandou La Granja Coal Mozambique Yarwun 2 Escondida Pilbara Brownfield Greenfield ©2013, Rio Tinto, All Rights Reserved
Slide 10: Oyu Tolgoi: site overview
10 Oyu Tolgoi: site overview ©2013, Rio Tinto, All Rights Reserved
Slide 11: Oyu Tolgoi: progress towards first production
11 Oyu Tolgoi: progress towards first production Concentrator complex SAG-2 mill feed conveyer Regrind cyclone First copper concentrate stockpile ©2013, Rio Tinto, All Rights Reserved
Slide 12: Pilbara 360 expansion
12 Pilbara 360 expansion ©2013, Rio Tinto, All Rights Reserved
Slide 13: Pilbara expansion: acceleration of first ore from expansion to 290 Mt/a
13 Pilbara expansion: acceleration of first ore from expansion to 290 Mt/a Rio Tinto Pilbara iron ore shipping capacity (100% basis) Average Annualised Mt/a 380 360 First Ore 360 340 First Ore 340 320 290 First Ore 300 280 1H 260 4Q 240 3Q 220 200 2010 2011 2012 2013 2014 2015 2016 2017 ©2013, Rio T
Slide 14: Consistent strategy, clear priorities for 2013
14 Consistent strategy, clear priorities for 2013 • Core strategy remains unchanged • Greater focus, discipline and accountability • A clear agenda for 2013 − Improving performance at existing operations − Delivering approved growth projects − Reinforcing capital allocation discipline • Pursuing gre
Slide 15: Sam Walsh, Chief executive
25 February 2013 2012 results Market Strategy Projects Sam Walsh Chief executive