Ulric Adom, CFO – Growth & Innovation Division, Rio Tinto Presentation for CFO Summit 2019

1. ANZ CFO FORUM MARCH 2019
Automation:
Value capture and disruption
Ulric Adom | CFO Growth & Innovation Division
| Rio Tinto

3. As pioneers in mining and metals,
we produce materials essential
to human progress

4. © Rio Tinto 2019
A little bit about Rio Tinto
• Rio Tinto is a world leader in mining and metals
• We are 47,000 people working in around 35 countries
across six continents
• We supply the materials essential to modern life
• We put safety first in everything we do
• We operate with pioneering spirit, harnessing
innovation to help meet society’s needs in a changing
world
• We produce essential materials responsibly, and are
committed to minimising our environmental impact
• We partner for human progress, and share the
benefits of what we do with our stakeholders
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Employee, Grand-Baie works, Canada

5. © Rio Tinto 2019
Rio Tinto Finance value proposition
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Our Group strategy is to create superior value for shareholders by meeting our customers’ needs, maximising cash from our world class assets
and allocating capital with discipline.
Our Finance value proposition supports the strategy
As One Finance team we are at the heart of decision making:
We support and challenge performance with facts and analysis
We provide ideas and insights through deep expertise
We partner with the business to deliver value
We deliver reliable data with effective controls

6. © Rio Tinto 2019
Growth & Innovation Division
– Adding value throughout the asset lifecycle
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Rio Tinto Technical excellence horizontal
Geosciences, mining, processing, infrastructure, asset management, integrated operations
Enterprise-wide Information Systems & Technology (IS&T)
Enterprise-wise Internal management Consulting and Analytics Capabilities
G&I intellectual property & commercial strategy
Find Study Develop
Optimise
Close
Continue to
improve
engagement
with our people
2019
areas of focus for
G&I
Accelerate the
safe delivery of
growth options for
Rio Tinto
Support M2M
delivery and asset
life optimisation
Enable and
support the digital
transformation of
Rio Tinto
Optimise

7. © Rio Tinto 2019
Australian Resource Sector Productivity (Capital and Labour Indexed)
1st part of the equation: the Resource sector is at a
critical juncture….
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85
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100
105
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2005
-06
2015
-16
2013
-14
1995
-96
1989
-90
2011
-12
2001
-02
2007
-08
2017
-18
1997
-98
2009
-10
2003
-04
1999
-00
1993
-94
1991
-92
Low Price
Environment –
Significant
Productivity Gains
China Boom
Productivity Falls
Rio Tinto M2M
Programme
Kickoff
Industry
Slowing?
• Productivity fell dramatically across the
China ‘boom’ period
• Hard won and good progress has been
made over last four years in improving
productivity
• .. .but is the industry productivity
performance now plateauing?
Source: https://www.abs.gov.au/ausstats, Estimates of Industry Multifactor Productivity,
2017-18, (section: 5260.0.55.002)
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8. © Rio Tinto 2019
Control room, West Angelas operation, the Pilbara
2nd part of the equation: How to unlock and increase
potential value?
Time/cost/effort
Value/performance
Autonomous systems
Manned systems
Early stage
Optimisation
Mature
x
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9. © Rio Tinto 20199
Efficiency
Safe operating
Excellence
Benefits in mining Automation

10. © Rio Tinto 2019
Capturing the VALUE of automation in the value chain
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Drill & Blast Load & Haul Processing Rail to Port Shipping
FreeCashFlow
Physical Drivers Cash
Unconstrained
Physical
Automation
Technology
ADS
MAS Charge
AHS
MAS
RTVis
Authohaul
RTVis/MAS
Net Revenue
SOP
ROM
TMM
Fleet, FTE
Truck TMM
Drill Fleet, etc.
Cost
Cost
Cost
Cost
Cost
Cost
Operating costs
EBITDA
Tax & CAPEX
ABC
RTVis/MAS
MAS Blast

11. © Rio Tinto 201911
AutoHaul™ System
Health Safety and Environment:
a step change reduction in high risk light vehicle driving,
lower fuel consumption / emissions
Increase Capacity :
the AutoHaul® Project is a key element in achieving rail capacity
Improve Train Cycle Times:
reduction of delays associated with train driver change-over
Significant Improvement in Train Availability:
reduces the increasing challenges of managing rosters,
skills levels and human productivity issues
Speed improvement:
point to point speed improvement

12. © Rio Tinto 201912
• Largest fleet of driverless trucks in the industry. 130 autonomous trucks expected by 2019 end
• 13% reduction in load and haul operating costs
• In February 2018, our autonomous trucks surpassed hauling one billion tonnes of ore
Autonomous trucks

13. © Rio Tinto 201913
Autonomous Drilling System
• Fully automated hole pattern drilling without
human intervention.
• One single operator from a remote location to
operate up to four autonomous drill rigs
simultaneously.
• Much safer practice and has improved both
precision and equipment utilisation.
• Our Iron Ore business currently operates seven
fully autonomous rigs

14. © Rio Tinto 201914
• $2.6 billion investment in Koodaideri iron ore mine
• fully integrated mine automation and simulation
systems
• a digital replica of the processing plant
• accessible in real time by workers in the field
• advanced automation including an automated
workshop
• numerous data analytics capabilities and control
loops to optimise production and reduce downtime
Mine of the FutureTM – Koodaideri

15. © Rio Tinto 2019
Closing questions for reflection
1. What should be built internally and what should be outsourced?
2. Key strategic questions to ask
- Is this a key control point of the business
- Is it necessary to keep IP in-house?
- Is this where we need competitive differentiation?
3. As CFOs, do not forget
- What is the total cost of ownership?
- What is the cost of change?
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16. © Rio Tinto 201916

17. Questions and answers