Rio Tinto financial information by business unit

Financial statements

Rio Tinto financial information by business unit

Rio Tinto financial information by business unit (PDF 61 KB)

**Years ended 31 December**
	Gross revenue (a)			EBITDA (b)		Net earnings (c)
	Rio Tinto interest %	2008 US$m	2007 US$m	2008 US$m	2007 US$m	2008 US$m	2007 US$m
Iron Ore
Hamersley Iron (including HIsmelt®) (d)	100.0	11,006	6,155	7,038	3,427	4,642	2,151
Robe River (e)	53.0	2,728	1,640	1,983	991	1,062	503
Iron Ore Company of Canada	58.7	2,065	943	1,251	298	443	104
Rio Tinto Brasil	100.0	176	61	73	(1)	44	(12)
Dampier Salt	68.4	377	269	95	51	40	13
Product group operations		16,352	9,068	10,440	4,766	6,231	2,759
Evaluation projects/other		175	125	(228)	(98)	(214)	(95)
		16,527	9,193	10,212	4,668	6,017	2,664
Aluminium
Product group operations	(f)	23,795	7,309	4,224	1,729	1,255	1,119
Evaluation projects/other		44	50	(87)	(28)	(71)	(22)
		23,839	7,359	4,137	1,701	1,184	1,097
Copper & Diamonds
Kennecott Utah Copper	100.0	2,609	3,539	1,587	2,614	998	1,649
Escondida	30.0	2,402	3,103	1,464	2,510	836	1,525
Grasberg joint venture	(g)	53	461	38	296	4	159
Palabora	57.7	560	689	167	202	49	58
Kennecott Minerals	100.0	81	338	47	175	31	106
Northparkes	80.0	124	371	(1)	212	(12)	137
Diamonds	(h)	840	1,020	395	539	137	280
Product group operations		6,669	9,521	3,697	6,548	2,043	3,914
Evaluation projects/other		-	-	(403)	(212)	(285)	(163)
		6,669	9,521	3,294	6,336	1,758	3,751
Energy & Minerals
RTEA	100.0	1,869	1,560	397	331	147	132
Rio Tinto Coal Australia	(i)	5,142	2,272	2,900	510	1,721	246
Rössing	68.6	548	486	260	235	101	95
Energy Resources of Australia	68.4	418	303	352	135	141	38
Rio Tinto Iron and Titanium	(j)	1,919	1,673	755	471	295	164
Rio Tinto Minerals	(k)	1,061	965	183	176	86	71
Product group operations		10,957	7,259	4,847	1,858	2,491	746
Evaluation projects/other		41	144	395	(63)	396	(59)
		10,998	7,403	5,242	1,795	2,887	687
Other operations		44	55	(63)	30	(52)	15
		58,077	33,531	22,822	14,530	11,794	8,214
Other items		(12)	(13)	(355)	(635)	(337)	(526)
Exploration and evaluation				(150)	25	(124)	20
Net interest						(1,030)	(265)
Underlying earnings				22,317	13,920	10,303	7,443
Items excluded from underlying earnings				1,553	(309)	(6,627)	(131)
Total		58,065	33,518	23,870	13,611	3,676	7,312
Depreciation and amortisation in subsidiaries				(3,475)	(2,115)
Impairment charges				(8,030)	(58)
Depreciation and amortisation in equity accounted units				(414)	(310)
Taxation and finance items in equity accounted units				(718)	(973)
Profit before finance items and taxation				11,233	10,155

Business units have been classified according to the Group's management structure. Generally, this structure has regard to the primary product of each business unit but there are exceptions. For example, the Copper group includes certain gold operations.

The following changes have been made to the way Rio Tinto presents its financial information by business unit during 2008.
Industrial Minerals was combined with Energy to form the Energy & Minerals product group.
Diamonds was combined with Copper to form the Copper & Diamonds product group.
Dampier Salt was reclassified from the Minerals product group to the Iron Ore product group.
Information for 2007 has been reclassified accordingly.

**Years ended 31 December**
		Capital expenditure (l)		Depreciation & amortisation		Operating assets (m)		Employees (o)
	Rio Tinto interest %	2008 US$m	2007 US$m	2008 US$m	2007 US$m	2008 US$m	2007 US$m	2008 Number	2007 Number
Iron Ore
Hamersley Iron (including HIsmelt®) (d)	100.0	1,860	1,597	466	352	5,170	6,133	6,321	4,786
Robe River (e)	53.0	683	241	111	104	1,622	1,877	1,011	873
Iron Ore Company of Canada	58.7	256	163	83	78	482	869	2,094	1,939
Rio Tinto Brasil	100.0	146	30	14	9	207	135	841	657
Dampier Salt	68.4	27	20	21	21	154	273	394	376
Other		24	34	10	3	(3)	24	448	375
		2,996	2,085	705	567	7,632	9,311	11,109	9,006
Aluminium	(f)	2,671	612	1,858	618	35,730	43,885	39,326	11,428
Copper & Diamonds
Kennecott Utah Copper	100.0	316	282	246	251	1,750	1,694	1,915	1,854
Escondida	30.0	120	170	98	98	849	1,045	960	876
Grasberg joint venture	(g)	32	76	25	24	426	410	2,185	2,047
Palabora	57.7	40	27	57	41	123	84	2,116	2,072
Kennecott Minerals	100.0	71	84	4	24	30	236	46	457
Northparkes	80.0	105	55	15	22	187	151	210	208
Diamonds	(h)	652	525	175	181	1,340	1,241	1,401	1,291
Other		132	22	1	1	831	498	143	162
		1,468	1,241	621	642	5,536	5,359	8,976	8,967
Energy & Minerals
RTEA	100.0	204	226	150	131	1,090	1,163	2,477	2,435
Rio Tinto Coal Australia	(i)	449	226	194	165	1,134	1,755	3,206	2,832
Rössing	68.6	73	57	20	13	229	151	1,307	1,175
Energy Resources of Australia	68.4	144	80	51	50	212	296	448	365
Rio Tinto Iron and Titanium	(j)	563	494	118	119	2,122	2,202	4,105	3,854
Rio Tinto Minerals	(k)	63	51	68	61	792	892	2,580	2,512
Other		5	17	11	3	60	58	155	135
		1,501	1,151	612	542	5,639	6,517	14,278	13,308
Other operations		192	37	13	2	560	139	163	203
Net assets held for sale (n)		-	-	-	-	3,204	4,392	28,386	5,680
Other items		151	144	80	54	1,009	360	3,547	3,085
Less: equity accounted units		(491)	(302)	(414)	(310)	-	-	-	-
Total		8,488	4,968	3,475	2,115	59,310	69,963	105,785	51,677
Less: Net debt						(38,672)	(45,191)
Total Rio Tinto shareholders' equity						20,638	24,772

Notes

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Gross sales revenue includes 100 per cent of subsidiaries' sales revenue and the Group's share of the sales revenue of equity accounted units.
EBITDA of subsidiaries and the Group's share of EBITDA relating to equity accounted units represents profit before: tax, net finance items, depreciation and amortisation.
Net earnings represent profit after tax for the year attributable to the Rio Tinto Group. Earnings of subsidiaries are stated before finance items but after the amortisation of the discount related to provisions. Earnings attributable to equity accounted units include interest charges and amortisation of discount. Earnings attributed to business units do not include amounts that are excluded in arriving at Underlying earnings.
Includes Rio Tinto's interests in Hamersley Iron (100 per cent) and HIsmelt (60 per cent).
The Group holds 65 per cent of Robe River Iron Associates, of which 30 per cent is held through a 60 per cent owned subsidiary. The Group's net beneficial interest is therefore 53 per cent, net of amounts attributable to outside equity shareholders.
Includes the Alcan group, excluding Packaging which is shown as an 'Asset Held for Sale', acquired in 2007 together with the aluminium business previously owned by Rio Tinto.
Under the terms of a joint venture agreement, Rio Tinto is entitled to 40 per cent of additional material mined as a consequence of expansions and developments of the Grasberg facilities since 1998.
Diamonds includes Rio Tinto's interests in Argyle (100 per cent), Diavik (60 per cent) and Murowa (77.8 per cent).
Includes Rio Tinto's 75.7 per cent interest in Coal & Allied, which is managed by Rio Tinto Coal Australia, a 100 per cent subsidiary of Rio Tinto. The Group owns a 40 per cent interest in Bengalla and 80 per cent interest in Mount Thorley through 75.71 per cent investment in Coal & Allied, giving a beneficial interest to the Group of 30.3 per cent and 60.6 per cent, respectively.
Includes Rio Tinto's interests in QIT (100 per cent) and Richards Bay Iron and Titanium (Pty) Limited (50 per cent).
Includes Rio Tinto's interests in Rio Tinto Borax (100 per cent) and Luzenac Talc (100 per cent).
Capital expenditure comprises the net cash outflow on purchases less disposals of property, plant and equipment, capitalised evaluation costs and purchases less disposals of other intangible assets. The details provided include 100 per cent of subsidiaries' capital expenditure and Rio Tinto's share of the capital expenditure of equity accounted units. Amounts relating to equity accounted units not specifically funded by Rio Tinto are deducted before arriving at total capital expenditure for the Group.
Operating assets of subsidiaries comprise net assets before deducting net debt, less outside shareholders' interests which are calculated by reference to the net assets of the relevant companies (ie net of such companies' debt). For equity accounted units, Rio Tinto's net investment is shown.
On this line, operating assets deal with Alcan Packaging and other assets held for sale. The remaining data on this line relates only to Alcan Packaging.
Employee numbers, which represent the average for the year, include 100 per cent of employees of subsidiary companies. Employee numbers for proportionally consolidated and equity accounted units are proportional to the Group's interest. Average employee numbers include a part year effect for companies acquired or disposed of during the year. Part time employees are included on a full time equivalent basis. Temporary employees are included in employee numbers. People employed by contractors are not included. Rio Tinto Alcan's employees in 2007 are shown on a pro rata basis.

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