FAQs

• What are American Depositary Receipts (ADRs)?
• What are the benefits of ADRs for an investor?
• What type of ADR facility does Rio Tinto plc provide?
• How do Rio Tinto ADRs Trade?
• How can I buy Rio Tinto ADRs?
• Who will vote the ADRs held at Rio Tinto's Annual General Meetings?
• When are dividends paid?
• What is the dividend record date?
• What is the ex-dividend date?

What are American Depositary Receipts (ADRs)?

American Depositary Receipts (ADRs) are negotiable US securities that represent a company's publicly traded equity or debt. ADRs are created when a broker purchases a non-US company's shares on the home stock market and delivers those to the depositary bank's local custodian bank, which then instructs the depositary bank to issue ADRs.

An ADR is a physical certificate evidencing ownership of one or more American Depositary Shares (ADSs). ADSs represent a company's ordinary shares and carry the rights attaching to them. The relationship between the number of ADRs and the number of a company's ordinary shares is typically referred to as the ADR ratio. The ADR certificate sets out the responsibilities of the Depositary Bank with respect to actions such as payment of dividends, voting at shareholder meetings, and handling of rights offerings.

ADRs may also be purchased in the US secondary trading market. ADRs may trade freely, just like any other security, either on an exchange or in the over-the-counter market.

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What are the benefits of ADRs for an investor?

Increasingly, investors aim to diversify their portfolios internationally. ADRs offer a number of advantages to particular investors including:

• Quotation and payment of dividends in US dollars
• Diversification without many of the difficulties investors have in purchasing and holding securities outside of their local market
• Elimination of global custodian safekeeping charges
• Familiar trade, clearance and settlement procedures
• Ability to acquire the underlying securities directly upon cancellation

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What type of ADR facility does Rio Tinto plc provide?

Rio Tinto plc is a sponsored Level II Depositary Receipt, which trades on The New York Stock Exchange. Level II Depositary Receipts are exchange-listed securities but do not involve raising new capital. Level II Depositary Receipt programmes require SEC registration and adherence to applicable requirements for US Generally Accepted Accounting Principles (GAAP).

One Rio Tinto plc ADR represents four ordinary Rio Tinto plc shares.

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How do Rio Tinto ADRs Trade?

Rio Tinto plc ADRs are issued by the Depositary Bank, JPMorgan Chase Bank NA, when the underlying shares are deposited in a local custodian bank, usually by a broker who has purchased the shares in the open market. Once issued Rio Tinto plc ADRs may be traded in the US on the New York Stock Exchange.

When the ADR holder sells, the ADR can either be sold to another US investor or it can be cancelled and the underlying shares can be sold to a non-US investor. In the latter case, the ADR is surrendered and the shares held with the local custodian bank would be released back into the home market and sold to the purchaser's broker.

A Rio Tinto ADR holder is able to request delivery of the underlying Rio Tinto shares at any time.

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How can I buy Rio Tinto ADRs?

or investment advisor. For Rio Tinto plc ADRs, JPMorgan Chase Bank NA (JPMC) operates a GLOBAL INVEST DIRECT programme, which allows first time and existing investors to purchase ADRs at reduced costs. All such investment are made through JPMC as transfer agent.

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Who will vote the ADRs held at Rio Tinto's Annual General Meetings?

Holders of Rio Tinto plc ADRs are entitled to instruct the Depositary Bank, JPMorgan Chase Bank NA, as to how to vote in relation to their shareholding at the respective annual general meetings. The voting rights are in relation to the number of Rio Tinto ordinary shares represented by the respective ADRs.

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When are dividends paid?

Rio Tinto pays dividends twice a year, as an 'interim' dividend and a 'final dividend'. When the financial results for the half year and full year are announced, the level of dividend to be paid to shareholders is also announced. The dividend is usually paid in April and September and is paid to everyone who holds shares on the 'record date'. The dividend payable is determined in US dollars by the directors and translated into sterling or Australian dollars at the exchange rate prevailing two days before the results are announced.

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What is the dividend record date?

This is the date the Registrars view the register to prepare the dividend payment. A shareholding must be registered on this date to receive the dividend. The record date normally falls about three weeks before the dividend is paid. The record date for the latest dividend can be found in the Investor calendar.

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What is the ex-dividend date?

The ex-dividend date is a specific date, occurring after the dividend has been declared after which buyers are no longer entitled to receive the last declared dividend. This is known as going 'ex-dividend' and before this date the shares are said to be 'cum-dividend'. If you buy shares before the ex-dividend date, you are entitled to the recently announced dividend. If you purchase shares on or after that date, the previous owner of the shares (and not you) is entitled to the dividend. The ex-dividend date for the latest dividend can be found in the Investor calendar.

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