Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 24

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 24
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 flow generation as we execute our strategy to deliver organic growth through our major projects, while continuing to drive for efficiencies across our existing assets. Free cash flow $ millions l l Definition Free cash flow is a non-IFRS measure defined as net cash generated from operating activities minus purchases of property, plant and equipment, intangibles, and payments of lease principal, plus proceeds from the sale of property, plant and equipment, and intangible assets. For more information and a reconciliation of free cash flow to the nearest comparable IFRS measure, see Alternative Performance Measures (pages 269 - 273 ). Relevance to strategy This KPI measures the net cash returned by the business after the expenditure of sustaining and growth capital. This cash can be used for shareholder returns, reducing debt and other investment. Link to executive remuneration Free cash flow is 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 Free cash flow decreased by $2.1 billion to $5.6 billion in 2024 , primarily due to increased capital expenditure as we ramp up several major growth projects, slightly offset by increased net cash generated from operating activities. We remain focused on our consistent cash flow generation as we execute our strategy to deliver organic growth through our major projects, while continuing to drive for efficiencies across our existing assets.

| Annual Report on Form 20-F 2024 | 14 | 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 |

Net (debt)/cash $ millions

l l Definition Net (debt)/cash is a non-IFRS measure defined as total borrowings plus lease liabilities less cash and cash equivalents and other liquid investments, adjusted for derivatives related to net (debt)/cash (see note 19 of the financial statements). For more information and a reconciliation of net (debt)/cash to the nearest comparable IFRS measure, see Alternative Performance Measures (pages 269 - 273 ). Relevance to strategy This KPI measures how we are managing our balance sheet and capital structure. A strong balance sheet gives us the flexibility to take advantage of opportunities as they arise and return cash to shareholders. Link to executive remuneration Net (debt)/cash is, in part, an