Deutsche Bank Brics Metals And Mining Conference 10 Nov 09

Deutsche Bank BRICS Metals & Mining Conference Guy Elliott, chief financial officer 10 November 2009

[object Object],[object Object],[object Object],[object Object],[object Object],Cautionary Statement

Outline Introduction Economic update and longer term outlook Rio Tinto’s strategy Financial update Summary

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],We have strengthened the business Progress in 2009

Cyclical upturn in the developed world but short term recovery may not be strong Source: ISM Factory (US), Nomura JM (Japan), Markit (Eurozone) Purchasing manager indicators suggest recovery … ,[object Object],[object Object],[object Object],[object Object],.. but a number of ‘headwinds’

percent yoy Growth in China is already back close to average since 2000 but elsewhere it remains well below Change in GDP US Japan China has been leading the global economic recovery Source: Reuters Ecowin, Consensus Economics China Germany

Metals demand will double over the next fifteen to twenty years requiring a significant supply response ,[object Object],[object Object],[object Object],[object Object],Global consumption of leading Rio Tinto commodities Indexed, 2000=100 Note: cf trend of 3-6 percent growth per annum for most other metals. Aluminium Iron Ore Copper Brook Hunt Estimates CRU Estimates

China and other emerging nations will drive steel consumption growth Source: WSA, RTIO analysis * Charts show steel consumption (Mt)

China increasingly reliant on lower-cost iron ore imports Apparent consumption of domestic iron ore (Mt) 2008 Source: China Customs, CRU, Bloomberg, Clarkson’s, RTIO internal estimates, RTIO Analysis 2008

China will struggle to maintain domestic aluminium market balance ,[object Object],[object Object],[object Object],[object Object],[object Object],Sources: IAI (International Aluminium Institute); Rio Tinto Alcan – Industry Analysis 0 5 10 15 20 25 30 35 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Aluminium Mt History Forecasts 13 Mt 18.5 Mt 31.5 Mt Chinese aluminium consumption Chinese aluminium production

Rio Tinto’s strategy is to maximise long term return to shareholders ,[object Object],[object Object],[object Object]

The balance sheet has been recapitalised ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Net debt ($bn) at end of period $16.8b 1 $5.8 billion subject to adjustment to achieve 1 July 2009 effective date

Good value achieved from divestments Cloud Peak Energy IPO 349 Alcan Engineered Products Composites 2,025 binding offer Alcan Packaging global pharma, tobacco, food Europe and Asia not disclosed 56% of Alcan Engineered Products Cable 1,200 Alcan Packaging Food Americas  764 Jacobs Ranch  1,600 Corumbá and potash assets  325 Ningxia, sundry exploration properties  2,940 Greens Creek, Cortez, Kintyre Completed Price (US$m) Asset

Good progress being made against operating cost reduction targets ,[object Object],[object Object],[object Object],[object Object],[object Object],Movement in A$ and C$ relative to US$

Continued investment in 2009 has allowed us to retain our growth pipeline ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Recapitalised balance sheet allows disciplined investment in value adding growth ,[object Object],[object Object],[object Object],[object Object],[object Object],Cash from operations Investment in value adding growth Strengthen the balance sheet Return cash to shareholders

Copper Bauxite Coal Alumina Nickel Aluminium Uranium Alumina Copper / Gold / Molybdenum Uranium Copper / Gold Iron ore Copper A diversified business with tier one growth options Feasibility & development Brownfield Greenfield Copper / Gold Aluminium Iron ore Aluminium Source: Rio Tinto Aluminium Nickel Coal Copper

Chinese growth is set to continue ,[object Object],[object Object],[object Object],[object Object],[object Object],Chongqing city, western China

A stronger business, well-positioned for improving market conditions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Deutsche Bank BRICS Metals & Mining Conference Guy Elliott, Chief Financial Officer 10 November 2009

Deutsche Bank Brics Metals And Mining Conference 10 Nov 09

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