Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 22

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 22
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 environment. Rio Tinto outperformed the EMIX/S&P Global Mining Index and marginally underperformed against the MSCI World Index over the 5-year period. We will continue to focus on generating free cash flow from our operations. This allows us to return cash to shareholders (short-term returns) while investing in the business (long-term returns). Underlying return on capital employed (ROCE) % l l Definition Underlying ROCE is a non-IFRS measure defined as underlying earnings excluding net interest divided by average capital employed (operating assets). For more information and a reconciliation of underlying ROCE to the nearest comparable IFRS measure, see Alternative Performance Measures (pages 269 - 273 ). Relevance to strategy Our portfolio of low-cost, long-life assets delivers attractive returns throughout the cycle and has been reshaped significantly in recent years. Underlying ROCE measures how efficiently we generate profits from investment in our portfolio of assets. Link to executive remuneration In the near term, underlying ROCE is influenced by underlying EBITDA, which is included in the STIP. Underlying earnings as a component of ROCE influences TSR, which is included in the LTIP (see page 134 ). Our performance in 2024 and forward plan Underlying ROCE decreased by 2 percentage points to 18% in 2024, reflecting a decrease in underlying earnings, principally due to lower iron ore prices, combined with an increase in operating assets due to capital expenditure on key growth projects and maintaining our operating capacity. We remain focused on delivering our strategy to generate attractive shareholder returns over the long term as we diversify our growing business and invest with confidence in the long-term demand for materials crucial to the global energy transition. 1. The TSR calculation for each period is based on the change in the calendar-year average share prices for Rio Tinto plc and Rio Tinto Limited over the preceding 5 years. This is consistent with the methodology used for calculating the vesting outcomes for Performance Share Awards (PSA). The data presented in this chart accounts for the dual corporate structure of Rio Tinto.

| Annual Report on Form 20-F 2024 | 13 | riotinto.com |

Strategic report | Key performance indicators

Alignment to our 4 objectives and associated risks key

| l | Best Operator | l | Impeccable ESG | l | Excel in Development | l | Social Licence |

Underlying earnings and underlying EBITDA $ millions

| Underlying earnings |
| Underlying E