Rio Tinto Plc · LSE:RIO
Rio Tinto — Shareholder Meeting (April 2010)
17 slides from Rio Tinto's shareholder meeting presentation, Apr 15, 2010
Slide 1: 2010 annual general meeting
2010 annual general meeting London 15 April 2010
Slide 2: Jan du Plessis, Chairman
Jan du Plessis Chairman
Slide 3: New directors
New directors Sam Walsh June 2009 Ann Godbehere February 2010 Robert Brown April 2010
Slide 4: 2009 – a year of two halves
2009 – a year of two halves First • Weak demand and low pricing • Large debt exposure in the downturn • Shareholders question Chinalco transaction Second • Rights issues raised US$14.8 billion • Binding agreements for iron ore production joint venture • Divestments for good value • More favourable m
Slide 5: 2009 – financial results
2009 – financial results • Underlying earnings a commendable US$6.3 billion • Net earnings were US$4.9 billion • Total dividends declared 45 US cents per share – (28.84 UK pence; 51.56 Australian cents) • Committed to a progressive dividend policy
Slide 6: Unchanged strategy
Unchanged strategy • Large, long life, low cost assets • Prudent balance sheet management • China relationship important to realise strategy • Commitment to sustainable development Yandicoogina iron ore, Australia
Slide 7: Our global outlook
Our global outlook • Strong market recovery in second half • Short term risks in Asia and OECD • China expected to grow at a rate of nine per cent in 2010 • Promise of long term demand from Asia still intact • Our business remains an attractive proposition (1) Coal, iron ore, oil and steel in 2008 S
Slide 8: Tom Albanese, Chief executive
Tom Albanese Chief executive
Slide 9: Safety is core to our business
Safety is core to our business
Slide 10: The balance sheet has been recapitalised
The balance sheet has been recapitalised Note: Debt maturity profile is as at 31 December 2009. $4 billion of the 2012 maturity was repaid in January and February 2010
Slide 11: Product group results
Product group results Underlying earnings (US$bn) Aluminium – significantly affected by downturn (0.6 billion) Copper – better costs, higher output 1.9 billion Diamonds & Minerals – adverse impact of markets 0.8 billion Energy – strong production and sales 1.4 billion Iron ore – another tonnage reco
Slide 12: Strong long term market environment
Strong long term market environment • Developing world commodity requirements unchanged • Consumption trends may double demand for iron ore, aluminium and copper • Expandable assets, core skills position us to help meet the challenge • Production joint venture with BHP Billiton to deliver more tonne
Slide 13: Strategic strengths
Strategic strengths • Core objective to maximise total shareholder return • Focus on Tier 1 assets: Bingham Canyon, Oyu Tolgoi, Simandou • Five business priorities play to our strengths to achieve our vision Bingham Canyon copper, US
Slide 14: Relationship with China
Relationship with China • Working hard to resolve difficult period • Link with Chinalco in Guinea • We are willing to develop further partnerships Chongqing, China
Slide 15: Growth pipeline
Growth pipeline • Clear pathway to 330mtpa in Pilbara • Yarwun alumina expansion targeted for 2012 • Coal and diamonds new production in 2010 • Oyu Tolgoi cleared for full construction • Chinalco understanding brings momentum to Simandou Simandou iron ore, Guinea
Slide 16: A focus on the future
A focus on the future • Emerged from testing year as a stronger company • Renewed confidence to pursue development options • Thank you for support of employees and shareholders Oyu Tolgoi copper-gold, Mongolia
Slide 17: 2010 annual general meeting
2010 annual general meeting 15 April 2010