Rio Tinto Plc · LSE:RIO
Rio Tinto — Bank of America Merrill Lynch Global Metals, Mining & Steel Conference 2019
16 slides from Rio Tinto's conference presentation, May 14, 2019
Slide 1: Bank of America Merrill Lynch Global Metals, Mining & Steel conference
Bank of America Merrill Lynch Global Metals, Mining & Steel conference J-S Jacques 14 May 2019, Barcelona
Slide 2: Cautionary and supporting statements
Cautionary and supporting 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 n
Slide 3: A 'New Era' of complexity…
A ‘New Era’ of complexity… Growing geopolitical Changing economic Technological Higher societal tensions development disruptions expectations Copyright of Julian Meehan 3 ©2019, Rio Tinto, All Rights Reserved
Slide 4: …creating challenges and opportunities for the industry
…creating challenges and opportunities for the industry - Trade and tariffs - Climate change - Resource nationalism - Environmental footprint - Cyber - Wealth distribution - People movement - Automation - ~3.5% global growth* - Carbon abatement - China ‘New Era’ - Data / AI - Asia / ASEAN / Africa 4
Slide 5: Our materials in a low carbon economy
Our materials in a low carbon economy Iron ore Copper Aluminium Minerals primary electrical conductor light, strong, flexible, critical elements of new fundamental building block of and contributing to corrosion-resistant and energy and battery industry and infrastructure electrification of transpor
Slide 6: Our strategy has delivered value through the cycle
Our strategy has delivered value through the cycle Superior cash generation World-class assets Operating and Commercial excellence Capabilities Portfolio Performance People & Partners Disciplined capital allocation Balance sheet strength Superior shareholder returns Compelling growth 6 ©2019, Rio Ti
Slide 7: A strong 2018
A strong 2018 Delivering $13.5 billion of cash returns Financial Balance Value performance sheet creation $18.1bn $0.3bn $13.5bn EBITDA* on margin of 42% Net cash at Dec-2018 Total shareholder cash returns – Adjusted net debt of $11.8bn $8.0 billion** – No bond maturities until $2.9bn Operating cash
Slide 8: Consistent, disciplined capital allocation
Consistent, disciplined capital allocation Investment and shareholder returns delivered from operating cash flow The most disciplined and balanced 50% of cash flow from operations $12bn $34bn allocation of cash* across the sector returned to shareholders Cash from Cash flow from disposals operations
Slide 9: A robust and high return portfolio
A robust and high return portfolio Our ROCE* continues to outperform our peers Resilient group EBITDA margins 3 year average** 2018 +4% +4% Peer average*** Peer average*** 9 Source: Rio Tinto, Company filings, Bloomberg, Metals Bulletin | * ROCE defined as tax adjusted EBIT / (consolidated book equi
Slide 10: Highly-valuable development opportunities
Highly-valuable development opportunities 2% Cu equivalent growth to 2023 Iron Ore Resolution Oyu Tolgoi Kennecott South Zulti South Jadar replacement Copper Underground Wall Pushback Mineral Sands (unapproved) mines (unapproved) $0.9bn development Additional $0.3bn** $5.3bn development $2.6bn Kooda
Slide 11: Industry-leading exploration, with early success in copper at Winu
Industry-leading exploration, with early success in copper at Winu Copper 64 Greenfield programmes Diamonds $231m 6 Brownfield spent on Iron Ore programmes exploration Bauxite in 2018 7 commodities Other 16 countries Latest success at Winu: – Copper-gold mineralisation intersected – Mineralisation c
Slide 12: A 'New Era' of complexity…
A ‘New Era’ of complexity… Growing geopolitical Changing economic Technological Higher societal tensions development disruptions expectations Copyright of Julian Meehan 12 ©2019, Rio Tinto, All Rights Reserved
Slide 13: Appendix
Appendix 13 ©2019, Rio Tinto, All Rights Reserved
Slide 14: Robust steel demand and iron ore supply disruptions providing attractive fundamentals
Robust steel demand and iron ore supply disruptions providing attractive fundamentals Significant iron ore supply disruptions in 2018 and 2019 Obstacles to China domestic iron ore supply response 0 Million tonnes USD/t 450 120 -20 400 100 -40 350 80 300 -60 60 250 200 40 -80 150 20 -100 2017 2018 20
Slide 15: 2019 operating cash flow of $16 billion at spot prices
2019 operating cash flow of $16 billion* at spot prices Iron Ore** Iron ore 95 Solid growth in global steel production continuing in 2019 YTD Disrupted seaborne supply continues 50 Jan 18 Mar 18 May 18 Jul 18 Sep 18 Nov 18 Jan 19 Mar 19 May 19 Aluminium*** Aluminium 2700 Robust global demand growth
Slide 16: Tailings storage facilities
Tailings storage facilities With active or inactive tailings storage Active or inactive, with an Rio Tinto Kennecott, Utah, US 32 facilities, including 3 non-managed operational sites and 4 legacy sites 100 additional 36 facilities closed or under rehabilitation operations facilities Construction ty
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