Well positioned to respond 精准定位应对市场 10 th Annual TZMI Congress, Hong Kong, 8 th November 2016 Stéphane Leblanc Managing Director, Rio Tinto Iron & Titanium 总裁, 力拓钛铁公司
Cautionary statement 2 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 contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Rio Tinto Group. These statements are forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933, and Section 21E of the US Securities Exchange Act of 1934. The words intend, aim, project, anticipate, estimate, plan, believes, expects, may, should, will, target, set to or similar expressions, commonly identify such forward-looking statements. Examples of forward-looking statements include those regarding estimated ore reserves, anticipated production or construction dates, costs, outputs and productive lives of assets or similar factors. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors set forth in this presentation. For example, future ore reserves will be based in part on market prices that may vary significantly from current levels. These may materially affect the timing and feasibility of particular developments. Other factors include the ability to produce and transport products profitably, demand for our products, changes to the assumptions regarding the recoverable value of our tangible and intangible assets, the effect of foreign currency exchange rates on market prices and operating costs, and activities by governmental authorities, such as changes in taxation or regulation, and political uncertainty. In light of these risks, uncertainties and assumptions, actual results could be materially different from projected future results expressed or implied by these forward-looking statements which speak only as to the date of this presentation. Except as required by applicable regulations or by law, the Rio Tinto Group does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events. The Group cannot guarantee that its forward-looking statements will not differ materially from actual results. In this presentation all figures are US dollars unless stated otherwise. Disclaimer Neither this presentation, nor the question and answer session, nor any part thereof, may be recorded, transcribed, distributed, published or reproduced in any form, except as permitted by Rio Tinto. By accessing/ attending this presentation, you agree with the foregoing and, upon request, you will promptly return any records or transcripts at the presentation without retaining any copies. This presentation contains a number of non-ifrs financial measures. Rio Tinto management considers these to be key financial performance indicators of the business and they are defined and/or reconciled in Rio Tinto s annual results press release and/or Annual report.
Safety remains our core value 安全始终是我们的核心价值 All Injury Frequency Rates 总工伤率 Rio Tinto Iron & Titanium, Rio Tinto 4.50 3 4.00 3.50 Rio Tinto AIFR 力拓集团总工伤率 3.00 Rio Tinto Iron & Titanium AIFR 力拓钛铁总工伤率 2.50 2.00 1.50 1.00 0.50 0.00 Jan 01 Jan 02 Jan 03 Jan 04 Jan 05 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 15 Jan 16 Source: Rio Tinto 2014, 2016 2015, Rio Tinto, All Rights Reserved
Our business has global scale and reach 我们的业务遍布全球 4 Primary TiO 2 products 主要产品 60% TiO 2 QMM ilmenite 80% TiO 2 85% TiO 2 90% TiO 2 95% TiO 2 Sorelslag RBM chloride slag RTCS TM UGS Sales office 销售中心 Production location 生产基地 Warehouse 仓储地 Other products 其它产品 Zircon 锆英砂 Rutile 金红石 High purity iron 高纯铁 Metal powders 金属粉末 Steel 钢 Large, long-life, low-cost ore-bodies 规模庞大 可长期开采且低成本的矿山资源 Proprietary smelting technology, product development and customer support 自主知识产权的冶炼技术 产品开发以及客户支持 Reliable and flexible production base serving chloride and sulphate pigment, and welding and sponge industries 可靠并具有市场灵活性的生产基地, 为氯化法和硫酸法钛白粉 焊接钛铁以及海绵钛等行业供应原料 Multiple co-product streams deliver maximum value from ore-bodies 多种共生产品的组合以创造矿体的最大价值 Co-product upgrading to supply niche, high-margin markets 共生产品升级面向专业细分的高端市场 Titanium dioxide business well placed to supply consumption-driven demand growth 二氧化钛业务立足于供应由消费驱动的需求增长
5 RTIT has been resilient in spite of weak markets 在低迷的市场里力拓钛铁公司的业务仍保持稳健 RTIT EBITDA 力拓钛铁公司税息折旧及摊销前利润 USDm 百万美元 800 700 600 500 400 300 200 100 0 2013 2014 2015 2016 H1 TiO2 feedstock, pigment and zircon prices 二氧化钛原料, 钛白粉和锆英砂价格 USD/t FOB 美元 / 吨离岸价 3500 3000 2500 2000 1500 1000 500 World Pigment Rutile Zircon 全球钛白粉 金红石 锆英砂 0 Jun-12 Mar-13 Dec-13 Sep-14 Jun-15 Mar-16 TiO2 and zircon markets have seen weak demand growth, some new supply entrants and excess inventories 二氧化钛和锆英砂市场经历了低迷的需求增长, 新增产能以及过剩的库存 Prices have declined significantly in the past 4 years 在过去的四年里, 价格大幅下跌 RTIT s financial performance and contribution to RT group has been robust 力拓钛铁公司的财务状况以及对整个力拓集团的盈利贡献保持了稳健 Source: Rio Tinto, TZMI
A TiO 2 market recovery is underway, led by construction 在建筑业的驱动下, 全球 TiO 2 市场正在复苏 Chinese and US property market growth 中美房地产市场增长 % y/y growth, 3m MA 40% China floor space sold 30% US new home sales 20% 10% 0% -10% 中国住房销售面积美国新房销售 -20% Jan 14 Jul 14 Jan 15 Jul 15 Jan 16 Jul 16 Fixed asset investment and government stimulus have driven a recovery in the Chinese property market 在固定资产投资和政府刺激下, 中国房地产行业的复苏 Strength in the US housing market has also been a positive influence 稳健的美国的房地产市场也对需求复苏作出了贡献 6 Chinese sulphate ilmenite price 中国钛精矿价格 Panzhihua ilmenite 46% TiO2, RMB/t 攀枝花钛精矿 900 800 700 600 500 400 300 200 100 0 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Chinese ilmenite supply has declined leading to higher local prices and rising imports 中国国内的钛精矿产量下滑, 导致了国内价格和进口数量双双上升 Global excess feedstock inventories continue to wind down 全球的钛白粉原材料库存持续下降 Source: Bloomberg, Rio Tinto, CNFEOL
Zircon market has experienced a period of weakness 全球锆英砂市场已经经历了一段时期的疲软 7 Global zircon market balance 全球锆英砂供求平衡表 000t 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 RoW Demand China Demand Global Supply 全球其他国家需求量 中国需求量 全球供给量 2010 2011 2012 2013 2014 2015 Global zircon demand has declined due to weakness in China, and substitution and thrifting in the rest of the world 全球锆英砂需求下降, 主要归咎于中国需求的疲软, 以及全球其他国家替代品的使用, 以及配方的优化而导致的用量减少 New market entrants have contributed to market supply and excess inventories 新增的生产厂商造成了锆英砂库存的积压 RTIT is well positioned to meet future supply needs 力拓钛铁公司为应对未来需求的增长已经做好了充分的准备 Source: TZMI, Rio Tinto
Longer term fundamentals intact, but a volatile backdrop is likely to persist 长期需求增长的基本面保持不变, 但短期市场的波动将会持续 TiO 2 pigment regional s-curves 钛白粉地区需求曲线 kg of pigment, GDP per capita average (1995-2015; kg/cap, $2005 PPP) 4.0 3.5 3.0 2.5 2.0 1.5 钛白粉人均消耗量 ( 公斤 ), 人均 GDP North America China Other Asia 北美 中国 亚洲其他 JKT India Indicative S-Curve 需求曲线 日韩台 印度 Western Europe 西欧 Long term demand is linked to rising GDP levels 长期需求与 GDP 增长相关联 Volatility in GDP growth caused by economic shocks will lead to changes in short term pigment demand GDP 增长过程中出现的经济震荡将会导致钛白粉需求的短期调整 8 1.0 0.5 Industry needs to be able to react to changes 整个行业要能够应对这些调整 0.0 0 4 8 12 16 20 24 28 32 36 Source: Ruidow, TZMI, Rio Tinto, Global Insight,
RTIT assets well positioned to respond to changes in the market 力拓钛铁公司的资产配置能够很好地应对市场的变化 RTIT production, TiO 2 slag 力拓钛铁公司产量, 钛渣 Indexed, 指数 2012 = 100 120 100 80 60 40 20 0 2012 2013 2014 2015 2016* RTIT cash operating costs 力拓钛铁公司现金成本 (100% basis) Indexed 指数 2012 = 100 100 80 60 40 20-47% 2012 2013 2014 2015 2016* Continue to align production to meet demand 继续根据需求来调配产量 Capacity available to meet demand growth without relying on significant investment in new facilities 目前已有产能能够满足未来需求的增长, 而不必大量投资进行产能扩张 Assets benefitted from cost reductions, improved operational readiness and product development 通过成本缩减, 运营优化以及产品开发提高了资产竞争力 Targeted focus on increasing UGS and zircon volumes 将会集中提高 UGS 升级高钛渣和锆英砂的产量 9 Source: Rio Tinto * 2016 forecast data
RTIT can readily meet specific customer needs via product optionality and technical capability 力拓钛铁公司凭借多种产品选择以及技术能力能够满足不同客户的需求 Optionality between ilmenite, slag, UGS and rutile ensures flexible product mix that can meet customers requirements 通过钛精矿, 钛渣,UGS 升级高钛渣和金红石的各种组合能够满足不同客户的需求 Commenced QMM ilmenite sales to third party 已经开始 QMM 钛精矿对第三方的销售 Established UGS as preferred feedstock for new chloride pigment projects UGS 升级高钛渣已经成为一些新的氯化钛白项目的首选原料并获得了良好的口碑 World class technology and technical capability with continuous product development 持续的产品研发以及世界领先的工业技术和工艺能力 10
Low cost long life expandable assets ensure longer term supply certainty in TiO2 and zircon 低成本 长寿命 易于扩产的资产能够保证长期稳定的 TiO2 和锆英砂的供应 11 Work continues on the feasibility study for the Zulti South development at RBM ZultiSouth 的可行性研究继续进行 Maximises the use of installed smelting capacity 最大化利用已有的冶炼产能 Enables RBM to sustain current low-cost production rates for the next two decades 确保 RBM 在今后的二十年里仍能维持目前的低成本生产规模
Reliable supply from a portfolio of industry leading assets 立足行业领先的资产提供可靠的供应保障 12 Consumption-driven demand growth in the medium term is driven by strong macroeconomic fundamentals 强劲的宏观经济确保了中期由消费驱动的需求增长 Portfolio of strong assets positioned to supply into this demand growth 强健的资产组合能够为需求的增长提供优质的产品 Driving operating discipline to reduce costs and increase productivity 通过全方位的经营管理来降低成本并提高生产效率 Proprietary smelting technology and market insight provides a competitive advantage 我们的竞争优势来自于自主知识产权的冶炼技术和对市场的洞 察能力 Maximising the value of our assets through coproduct streams 通过共生品的生产和销售来实现资产价值最大化 Richards Bay Minerals, South Africa 理查兹湾, 南非 Well positioned for any market recovery 一旦市场复苏, 能够立即满足需求的增长