Rio Tinto Plc · LSE:RIO

Rio Tinto — Investor Presentation (June 2018)

23 slides from Rio Tinto's investor presentation, Jun 4, 2018

  1. Slide 1: Cautionary statements

    Cautionary statements This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited (“Rio Tinto”). By accessing/attending this presentation you acknowledge that you have read and understood the following statement. Forward-looking statements This document, including but not limited to a

  2. Slide 2: Continuing to deliver superior returns

    ©2018, Rio Tinto, All Rights Reserved Continuing to deliver superior returns ✓ EBITDA of $18.6 billion, margin of 44% in 2017 ✓ Reshaping the portfolio with divestment proceeds of $2.7 billion in 2017 - Further divestments of ~$5 billion announced to date in 2018 ✓ Investing in high-return growth: $

  3. Slide 3: Delivered ~50% of sector cash returns in 2017

    ©2018, Rio Tinto, All Rights Reserved Delivered ~50% of sector cash returns in 2017 2017 cash returns across the diversified miners 4 Allocation of cash generated 2 – 2017

  4. Slide 4: <$8bn of total cash returns from peers

    <$8bn of total cash returns from peers Peer 2 Peer 3 Peer 4 J Ronin |

  5. Slide 5: Supportive global macro, but with inflation and volatility

    ©2018, Rio Tinto, All Rights Reserved Supportive global macro, but with inflation and volatility

  6. Slide 6: Source: CEIC, Rio Tinto, FactSet

    Source: CEIC, Rio Tinto, FactSet

  7. Slide 7: Safety and health come first

    ©2018, Rio Tinto, All Rights Reserved Safety and health come first Continuing history of improvement in AIFR

  8. Slide 8: Fatality at Iron & Titanium in April 2018

    Fatality at Iron & Titanium in April 2018 Focusing on fatality elimination in part through the Critical Risk Management programme which continues across the Group Reducing injuries through targeted hazard elimination campaigns Catastrophic event prevention through the identification and management o

  9. Slide 9: Building strength across the business

    ©2018, Rio Tinto, All Rights Reserved Building strength across the business Resilient group EBITDA margins with ROCE 1 that continues to outperform its peers

  10. Slide 10: EBITDA margin

    44% 44% 44% BEREEEEEEEEE , 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 EBITDA margin (%) 62% Iron Ore average price (Indexed)* ~~ LME Primary Aluminum average price (Indexed)° LME Copper average price (Indexed) >

  11. Slide 11: Footnotes and sources

    Source: Rio Tinto, Company filings, Bloomberg, Metals Bulletin 1 Defined as tax adjusted EBIT / (consolidated book equity + net debt) 2 Simple average of annual ROCE for 5 years 3 Simple average of peers comprising Anglo American, BHP, Glencore and Vale 4 2008 iron ore price data begins in May 5 3-m

  12. Slide 12: Further value creation

    ©2018, Rio Tinto, All Rights Reserved Further value creation

  13. Slide 13: A clearly defined productivity programme

    ©2018, Rio Tinto, All Rights Reserved A clearly defined productivity programme Productivity levers $1.5bn productivity opportunity in 2021 ($5bn cumulative, 2017-2021) Impact of productivity programme on ROCE 1

  14. Slide 14: High-return growth optionality

    1 ROCE defined as tax adjusted EBIT / (consolidated book equity + net debt) 2 ROCE proforma (PF) assumes incremental $1.5bn to numerator 3 Simple average of peers including Anglo American, BHP, Glencore and Vale High-return growth optionality Iron Ore Optimising the world’s premier iron ore business

  15. Slide 15: Tier growth within our world-class portfolio

    ©2018, Rio Tinto, All Rights Reserved Tier 1 growth within our world-class portfolio

  16. Slide 16: 2025 iron ore cost curve

    2025 iron ore cost curve Koodaideri

  17. Slide 17: 2025 aluminium cost curve

    2025 aluminium cost curve

  18. Slide 18: 2030 copper cost curve

    2030 copper cost curve Resolution Oyu Tolgoi

  19. Slide 19: Capital rotation is positioning Rio Tinto for the future

    Source: Rio Tinto (bauxite), Wood Mackenzie (all others). Koodaideri and Resolution projects remain unapproved by Rio Tinto. They remain subject to the completion of various studies and approvals Capital rotation is positioning Rio T into for the future

  20. Slide 20: Continuous portfolio review

    Continuous portfolio review – Focusing on higher long-term returns – Successful divestment programme – Exiting coal – European smelters Evaluation of acquisition opportunities – Rigorous and disciplined – Rio Tinto Ventures – Creates additional scope and capability Size of the bubbles represent repo

  21. Slide 21: A disciplined capital allocation framework

    ©2018, Rio Tinto, All Rights Reserved A disciplined capital allocation framework

  22. Slide 22: Superior cash generation

    Superior cash generation World-class assets Operating excellence Capabilities Portfolio Performance

  23. Slide 23: ©2018, Rio Tinto, All Rights Reserved

    ©2018, Rio Tinto, All Rights Reserved

Rio Tinto — Investor Presentation (June 2018) on 6ix