Rio Tinto Plc · LSE:RIO
Rio Tinto — Shareholder Meeting (April 2003)
34 slides from Rio Tinto's shareholder meeting presentation, Apr 17, 2003
Slide 1: Annual General Meeting
Annual General Meeting 17 April 2003
Slide 2: 2002 market conditions
2002 market conditions • Most markets flat • Second highest earnings • Record cash flow
Slide 3: Consistently strong earnings
Consistently strong earnings Adjusted earnings Earnings - by commodity (2002) US$ millions Other 1% Diamonds 3% Copper & Gold 2000 20% 1,662 Industrial Minerals 1,507 1,530 17% 1600 1,282 1,220 1200 1,070 1,103 Aluminium 800 15% 400 Coal 18% 0 Iron Ore 96 97 98 99 00 01 02 26%
Slide 4: China's share of world demand
China’s share of world demand % of total world demand 30 Aluminium Copper Traded iron ore 25 20 15 10 5 0 1990 1996 2002 Source: Rio Tinto
Slide 5: A consistent and successful strategy
A consistent and successful strategy Maximisation of shareholder value Emphasis on Large scale, Excellence in quality of long life, low mining the cost opportunity Rigorous capital appraisal process Existing and future asset base Note that past performance cannot be relied upon as a guide to future
Slide 6: Sustainable development
Sustainable development • Global Mining Initiative • International Council on Mining and Metals • World Summit on Sustainable Development • Performance measurement • Updated statement of business practice
Slide 7: Annual General Meeting
Annual General Meeting 17 April 2003
Slide 8: Contribution to earnings by product group
Contribution to earnings by product group US$m US$1,912 m US$1,788 m 2,000 Diamonds & Gold 1,750 +8% 1,500 Aluminium -18% 1,250 Copper +11% 1,000 Industrial Minerals -11% 750 Energy -6% 500 250 Iron Ore -9% 0 2001 2002
Slide 9: Improving performance
Improving performance • Hamersley – productivity doubled since 1996 • Blair Athol – productivity doubled since 1997 • Focus in 2003 on KUC and IOC
Slide 10: Margins strong across all the product groups
Margins strong across all the product groups EBIT Margin % 50 40 Industrial Minerals Iron Ore Diamonds & Gold 30 Energy 20 Aluminium 10 Copper 0 EBIT $m 0 200 400 600 800 1000 Bubble size represents turnover. All data is for year ended 31 December 2002
Slide 11: Pilbara iron ore operations
Pilbara iron ore operations ! Dampier Cape Lambert Hamersley Robe Mesa J Brockman Marandoo Yandicoogina Tom Price !!!!! 50km Paraburdoo West Angelas
Slide 12: Copper - production flexibility at Escondida
Copper - production flexibility at Escondida
Slide 13: Diavik - ahead of time and on budget
Diavik - ahead of time and on budget
Slide 14: Hail Creek – good progress
Hail Creek — good progress <a ae E= eee —| 5 has | i . = 4
Slide 15: Comalco alumina refinery – on track for 2005
Comalco alumina refinery – on track for 2005
Slide 16: Iron ore – growth options
Iron ore – growth options • Robe River JV – West Angelas ramp up to 20mtpa • Hamersley Iron – Rail and port capacity expansion – Yandicoogina expansion – Reserve extension programme
Slide 17: Annual General Meeting
Annual General Meeting 17 April 2003
Slide 18: Rio Tinto's performance is superior to sector peers
Rio Tinto’s performance is superior to sector peers Ranking of Rio Tinto plc vs 15 other resource Current comparator stocks on a Total Shareholder Return basis over companies 4 year rolling periods Alcan Q1 Alcoa Anglo American Barrick Gold Q2 BHP Billiton Limited Freeport Grupo Mexico Q3 INCO MIM N
Slide 19: Rio Tinto relative to HSBC Global Mining Index
Rio Tinto relative to HSBC Global Mining Index total return basis Index 1990 = 100 300 Compound outperformance = 7.4% per annum 250 200 150 100 50 90 91 92 93 94 95 96 97 98 99 00 01 02 Note that past performance cannot be relied upon as a guide to future performance
Slide 20: Outlook
Outlook • Geo-political tensions • Potential for slow recovery in developed world • Growth of China • Exchange rate volatility
Slide 21: Annual General Meeting
Annual General Meeting 17 April 2003
Slide 22: Resolution: to authorise directors to allot shares
Resolution 1 to authorise directors to allot shares
Slide 23: Resolution: allot shares for cash and disapply pre-emption rights
Resolution 2 to authorise directors to allot shares for cash and to disapply pre-emption rights
Slide 24: Resolution: renew authority to purchase Rio Tinto plc shares
Resolution 3 to renew authority for the purchase of Rio Tinto plc ordinary shares
Slide 25: Annual General Meeting
Annual General Meeting 17 April 2003
Slide 26: Resolution: to elect Mr AFJ Gould
Resolution 4 to elect Mr AFJ Gould
Slide 27: Resolution: to elect Mr DC Clementi
Resolution 5 to elect Mr DC Clementi
Slide 28: Resolution: to re-elect Mr R Adams
Resolution 6 to re-elect Mr R Adams
Slide 29: Resolution: to re-elect Mr LA Davis
Resolution 7 to re-elect Mr LA Davis
Slide 30: Resolution: to re-elect Mr DL Mayhew
Resolution 8 to re-elect Mr DL Mayhew
Slide 31: Resolution: to re-appoint PricewaterhouseCoopers LLP
Resolution 9 to re-appoint PricewaterhouseCoopers LLP
Slide 32: Resolution: to approve the remuneration report
Resolution 10 to approve the remuneration report
Slide 33: Resolution: receive directors' and auditors' reports and financial statements
Resolution 11 to receive the directors’ and auditors’ reports and financial statements for 2002
Slide 34: Annual General Meeting
Annual General Meeting 17 April 2003