Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 23

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 23
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BITDA   |

l Definition Underlying earnings and underlying EBITDA are non-IFRS measures. Underlying earnings represents net earnings attributable to the owners of Rio Tinto, adjusted to exclude items that do not reflect the underlying performance of the Group’s operations. For more information on these exclusions and a reconciliation to the nearest IFRS measures, refer to Alternative Performance Measures (pages 269 - 273 ) . Underlying EBITDA is a segmental performance measure and represents profit before taxation, net finance items, depreciation and amortisation, and adjusted for exclusions. Exclusions from underlying EBITDA and a reconciliation to the nearest IFRS measures can be found in note 1. Relevance to strategy These financial KPIs measure how well we are managing costs, increasing productivity and generating the most revenue from each of our assets. Link to executive remuneration Underlying EBITDA is reflected in the STIP. In the longer term, both measures influence TSR, which is the primary measure for the LTIP (see pages 130 - 134 ). Our performance in 2024 and forward plan Underlying earnings of $10.9 billion were $ 0.9 billion lower than in 2023 . Underlying EBITDA of $23.3 billion was $0.6 billion lower than in 2023 . The 2% decrease in underlying EBITDA was primarily due to lower iron ore prices, partly offset by higher prices for copper and aluminium, higher copper volumes and lower market-linked costs. We remain disciplined and focused on managing costs across our portfolio as we continue to generate consistent margins and maintain attractive shareholder returns. Net cash generated from operating activities $ millions l Definition This KPI refers to cash generated by our operations after tax and interest, including dividends received from equity accounted units and dividends paid to non-controlling interests in subsidiaries. Relevance to strategy This KPI measures our ability to convert underlying earnings into cash. Link to executive remuneration Net cash generated from operating activities influences the free cash flow measure included in the STIP. In the longer term, the measure influences TSR, which is included in the LTIP (see pages 130 - 134 ). Our performance in 2024 and forward plan Net cash generated from operating activities of $15.6 billion was 3% higher than 2023 . This was driven by improved working capital management and higher dividends from Escondida, partly offset by the impact of a lower iron ore price. We remain focused on our consistent cash