- Information for the years 1998 to 2003 is stated under UK GAAP
and has not been restated except where indicated below.
- Figures for 1998, reported under UK GAAP, were restated following
the implementation of FRS 12 in 1999. Shareholders' funds for 2001
and prior years were restated following the implementation of FRS
19 in 2002.
- Information for the years 2004 to 2007 is stated under EU IFRS.
The Group implemented IAS 39 on 1 January 2005 without restatement
of comparatives.
- Adjustments have been made for 2002 and subsequent years to include
in sales revenue, certain amounts charged to customers for freight
and handling costs, which previously were deducted from operating
costs.
- Certain units that were equity accounted under UK GAAP are proportionally
consolidated under EU IFRS and vice-versa.
- Underlying earnings is an additional measure of earnings, which
is reported by Rio Tinto with its EU IFRS results to provide greater
understanding of the underlying business performance of its operations.
It is defined in Note 2 to
the Financial Statements. Underlying earnings
is similar but not identical to the Adjusted earnings measure that
Rio Tinto reported with its UK GAAP results. Adjusted earnings was
defined as excluding exceptional items of such magnitude that their
exclusion was necessary in order that adjusted earnings fulfilled
their purpose of reflecting the underlying performance of the Group.
Underlying profit before interest and tax (PBIT) and Adjusted PBIT
are similar to Underlying earnings and Adjusted earnings except that
they are stated before tax and interest.
- Finance costs include net interest and amortisation of discounts.
- Under EU IFRS, certain gains and losses on exchange and on revaluation
of derivatives are included in the Group's Net earnings. Under UK
GAAP, these did not have an impact on the income statement. These
items are excluded from Underlying earnings.
- Dividends per share are the amounts declared in respect of each
financial year. These usually include an Interim dividend paid in
the year, and a final dividend paid after the end of the year. The
Special dividend of 110 US cents per share paid in 2006 is not included
in the table.
- Fixed Assets include property, plant and equipment, intangible
assets, goodwill, and investments in and long term loans to equity
accounted units.
- Capital expenditure comprises purchases less disposals of property,
plant and equipment, capitalised evaluation costs and purchases less
disposals of other intangible assets plus direct funding provided
to equity accounted units for Rio Tinto's share of their capital
expenditure. The figures include 100 per cent of subsidiaries' capital
expenditure, but exclude that of equity accounted units except where
directly funded by Rio Tinto.
- Total cash flow from operations comprises Cash flow from consolidated
operations together with Dividends from equity accounted units. Exploration
and evaluation costs charged against income were previously included
in Cash used in investing activities but are now included within
Cash flow from operating activities. As a result, exploration and
evaluation costs expensed have been reclassified in the comparative
periods within the cash flow statement.
- Cash flow before financing activities is stated before deducting
dividends payable to Rio Tinto shareholders, which involved restatement
of 2003 and prior years.
- Operating margin is the percentage of Underlying/Adjusted PBIT,
after excluding tax on equity accounted units, to Gross sales revenue.
- Total capital comprises year end shareholders' funds plus net debt
and outside shareholders' interests.
- Underlying/Adjusted earnings: shareholders' funds represents Underlying
or Adjusted earnings expressed as a percentage of the mean of opening
and closing equity attributable to Rio Tinto shareholders.
- Interest cover represents the number of times interest payable
less receivable (excluding the amortisation of discount but including
capitalised interest) is covered by Underlying operating profit,
less amortisation of discount, plus dividends from equity accounted
units. Underlying operating profit is similar to Underlying earnings
but is stated before tax, interest and share of profit after tax
of equity accounted units.
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