Rio Tinto Plc · LSE:RIO
Rio Tinto — Merrill Lynch Global Metals, Mining & Steel Conference 2008
28 slides from Rio Tinto's conference presentation, May 21, 2008
Slide 1: BHP Billiton: Resourcing the Future
Merrill Lynch Global Metals, Mining & Steel Conference BHP Billiton: Resourcing the Future Marius Kloppers, Chief Executive Officer 13 May 2008
Slide 2: Disclaimer
Disclaimer Slide 1 This document has been prepared by BHP Billiton Limited and BHP Billiton Plc (“BHP Billiton") and comprises the written materials/slides for a presentation concerning BHP Billiton's offers for Rio Tinto Limited and Rio Tinto plc (“Rio Tinto”). By reviewing/attending this presentat
Slide 3: Disclaimer (continued)
Disclaimer (continued) Slide 2 cause actual results, performance and achievements to differ materially from any expected future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements are based on numerous assumptions regarding BHP
Slide 4: Disclaimer (continued)
Disclaimer (continued) Slide 3 Information for US Holders of Rio Tinto Limited Shares BHP Billiton Limited is not required to, and does not plan to, prepare and file with the SEC a registration statement in respect of the Rio Tinto Limited Offer. Accordingly, Rio Tinto Limited shareholders should ca
Slide 5: Resourcing the future
Resourcing the future Industry outlook and growth Our strategy and management philosophy Growth drivers Conclusion Slide 4
Slide 6: Demand growth expected to continue
Demand growth expected to continue Slide 5 Finished steel consumption (kg/capita) Source: World Bank; Government Statistics for Taiwan; IISI GDP/Capita (Jan. 2008 Constant US Dollars) 1,000 1,200 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 China India Japan Korea, Rep. Unite
Slide 7: China's resource demand is not limited to steel
China's resource demand is not limited to steel China USA Other Slide 6 1,000 1,200 1,400 2,000 4,000 6,000 8,000 10,000 12,000 3,000 6,000 9,000 12,000 15,000 18,000 Copper consumption (kt) Nickel consumption (kt) Imported Iron ore (mt) Energy consumption (mtoe) Notes: Seaborne iron ore demand base
Slide 8: Risk that copper supply gap will widen
Risk that copper supply gap will widen Slide 7 Source: BHP Billiton; McKinsey analysis Includes projects classified by Brook Hunt as probable Demand at mine level Production from existing mines Additional probable brownfield production Demand unmet by brownfield Additional probable brownfields Conta
Slide 9: Significant price increases across all product groups
Significant price increases across all product groups Slide 8 552% 512% 337% Met. Coal Manganese Iron Ore 421% 228% 90% Copper Nickel Aluminium 491% 346% 163% Uranium Oil Energy Coal a) Hard coking coal based on Peak Downs/Goonyella/Hay Point FOB. JFY2008 forecast prices calculated based on 206-240%
Slide 10: Resourcing the future
Resourcing the future Industry outlook and growth Our strategy and management philosophy Growth drivers Conclusion Slide
Slide 11: Maintaining our commitment to our core strategy
Maintaining our commitment to our core strategy Slide • Focus on Tier 1 assets that are large, low-cost, expandable and consistently profitable • Upstream focus and export-oriented commodities • A deep inventory of growth options • Portfolio diversified by commodity, geography and customer • Overrid
Slide 12: We have a strong track record of growth and delivery
We have a strong track record of growth and delivery % Period Ended Total BHP Shareholder Return (b) Slide Production Growth 2001 – 2007 ( a ) ( Index : FY 2001 production = 100) BHP Billiton Ltd ( b ) ( Index : Jun - 2001 = 100) FY 0 5 FY 04 FY 03 FY 07 FY 02 FY06 BHP Billiton CAGR 8% Source: BHP B
Slide 13: To deliver our strategy at scale we need a simple, accountable organisation
Corporate Centre Business Units To deliver our strategy at scale we need a simple, accountable organisation with global talent Slide • Corporate centre focuses on the things that matter • Ensures delivery of key directives including Zero Harm, reputation & ethics • Monitors and measures business per
Slide 14: Our globally diversified workforce enables deep understanding of operating contexts
Our globally diversified workforce enables deep understanding of operating contexts Office location GMC Business Presidents Slide • …located in offices across the world • Our leadership team is diversified across a wide range of nationalities…
Slide 15: Resourcing the future
Resourcing the future Industry outlook and growth Our strategy and management philosophy Growth drivers Conclusion Slide
Slide 16: Our portfolio is diversified and balanced across high margin commodities
Our portfolio is diversified and balanced across high margin commodities Slide Underlying EBITDA (12 months, US$bn) Underlying EBITDA Margin (a) (CY2007, 12 months) Note: Historical financial information has been restated for comparative purposes per note 1 of BHP Billiton’s half-year financial repo
Slide 17: BHP Billiton: Resourcing the future
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Slide 21: Our Carbon Steel Materials assets are Tier 1
Our Carbon Steel Materials assets are Tier 1 27.4 103.5 62.5 1.1 0.6 3.0 Slide Source: BHP Billiton 2007 Annual Report, 2008 Interim Financial Results Announcement, Goldman Sachs JBWere Research Note: (a) Iron equivalent production based on coking coal and manganese production converted to iron ore
Slide 22: We are a significant independent petroleum player with a strong growth pipeline
We are a significant independent petroleum player with a strong growth pipeline Liquid Gas Slide Source: BHP Billiton estimates Key growth pipeline Project Stybarrow Genghis Khan Atlantis Zamzama Neptune Train 5 NWS LNG Shenzi Pyrenees Stage Online Online Online Online 2Q CY2008 Expansion late Start
Slide 23: The value of Tier 1 assets is the ability to expand production
The value of Tier 1 assets is the ability to expand production Slide 1,000 1,200 1,400 1,600 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 Escondida Norte + Sulphide Leach Phase IV + Laguna Seca Concentrator Oxide Plant Expansion Phase 3.5 + Oxide Plant Ph
Slide 24: Staged development of Olympic Dam will unlock significant value
180 150 190 190 730 Staged development of Olympic Dam will unlock significant value Copper kt p.a. 71 33 Gold koz p.a. Expansion stages 1.2&1.3 1.1 2.0 3.0 Today Full produc- tion Slide Staged development . . . 4.0 + 0.5 4.5 = 19 100 + = 800 (a) Does not include silvers approximate $1 per tonne Sour
Slide 25: BHP Billiton has an attractive growth profile of significant scale
BHP Billiton has an attractive growth profile of significant scale CAGR 6.9% Slide 2,000 4,000 6,000 8,000 10,000 12,000 14,000 CY 07 CY 08 CY 09 CY 10 CY 11 CY 12 Copper Equivalent Tonnes '000 Production in copper equivalent tonnes Source: BHP Billiton analysis. Similar methodology as per Rio Tinto
Slide 26: BHP Billiton's growth is focused on high margin commodities
BHP Billiton’s growth is focused on high margin commodities Slide 47% 37% 29% 64% 47% 37% 61% 14% Iron Ore Manganese Met Coal Copper Stainless Steel Materials Aluminium Petroleum Energy Coal Source: BHP Billiton analysis. EBIT margin excludes third party trading. Note: BHP Billiton margins are actua
Slide 27: Resourcing the future
Resourcing the future Industry outlook and growth Our strategy and management philosophy Growth drivers Conclusion Slide
Slide 28: Conclusion – Strength, stability and growth
Conclusion – Strength, stability and growth Slide • Strong pricing fundamentals due to increased demand and lagging supply • BHP Billiton’s strategy is unchanged - a diversified upstream portfolio of Tier 1, large, low-cost, expandable assets • BHP Billiton is well positioned to continue to create s
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