Modernising Agreements and Transition to Renewables slide image

Modernising Agreements and Transition to Renewables

We are in very robust financial health Strong balance sheet Net debt (cash) $bn 10.0 14.1 19.4 11.3 15.9 -19% 14.9 13.9 11.8 9.5 -11% 8.5 9.2 9.4 7.0 5.8 - ROCE (post-tax) – outperforming our peers Attractive cash flows $bn 26.6 30% 15% ■Operating cash flow ■Free cash flow 0% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2021* Jun-16 9.3 9.3 8.0 5.6 Dec-16 Jun-17 Dec-17 Jun-18 4.9 4.8 Dec-18 Jun-19 Dec-19 Jun-20 Pro-forma net debt* ** 1.6 Dec-20 Jun-21 -3.1 Investing consistently and with discipline through the cycle Maintain a strong balance sheet. Focus on "Single A" credit metrics We can grow and invest in decarbonisation whilst continuing to pay attractive dividends to shareholders - in line with our policy Peers: BHP, Vale, Anglo American and Glencore | *Consensus (Visible Alpha, 15 October 2021) | **Pro-forma net debt (cash) adjusts for the remainder of previously announced buy-backs from operations, lags in shareholder returns from disposal proceeds, Australian tax lag (December only) and disposal-related tax lag and the impact of IFRS 16 Leases accounting change for the prior periods. This lease accounting change is reflected in the June and December 2019 reported net debt Rio Tinto Peers ---Rio Tinto average - Peers average Rio Tinto ©2021, Rio Tinto, All Rights Reserved 66
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