Financial statements

Financial summary 1999 - 2008

US$m	1999	2000	2001	2002	2003	2004	2005	2006	Restated (r) 2007	2008
Gross sales revenue (d)	9,310	9,972	10,438	11,119	12,119	14,530	20,742	25,440	33,518	58,065
Share of equity accounted units' sales revenue (e)	(2,113)	(2,097)	(2,286)	(2,404)	(2,551)	(1,576)	(1,709)	(2,975)	(3,818)	(3,801)
Consolidated sales revenue	7,197	7,875	8,152	8,715	9,568	12,954	19,033	22,465	29,700	54,264
Underlying/Adjusted PBIT (f)	2,329	2,912	3,102	2,696	2,266	3,224	7,301	9,912	10,517	17,683
Finance costs (g)	(298)	(403)	(404)	(291)	(298)	(207)	(207)	(193)	(570)	(1,706)
Exchange differences and derivatives (h)						224	(191)	83	253	(322)
Other exclusions from Underlying/ Adjusted earnings (f)	-	-	(715)	(1,094)	126	622	409	438	(364)	(6,477)
Profit before tax ('PBT')	2,031	2,509	1,983	1,311	2,094	3,863	7,312	10,240	9,836	9,178
Tax on Exclusions	-	-	132	42	-	57	33	(357)	60	988
Tax on Underlying/Adjusted PBT	(548)	(819)	(850)	(750)	(567)	(676)	(1,847)	(2,016)	(2,150)	(4,730)
Loss after tax from discontinued operations	-	-	-	-	-	-	-	-	-	(827)
Attributable to outside shareholders	(201)	(183)	(186)	48	(19)	53	(283)	(429)	(434)	(933)
Net earnings	1,282	1,507	1,079	651	1,508	3,297	5,215	7,438	7,312	3,676
Underlying/Adjusted earnings (f)	1,282	1,507	1,662	1,530	1,382	2,272	4,955	7,338	7,443	10,303
Earnings per share (basic) - continuing operations	93.6c	109.8c	78.5c	47.3c	109.5c	239.1c	382.3c	557.8c	568.7c	350.8c
Underlying/Adjusted earnings per share (basic) - continuing operations	93.6c	109.8c	120.9c	111.2c	100.3c	164.8c	363.2c	550.3c	578.9c	802.7c
Dividends per share: declared for year (i)
Rio Tinto shareholders (US cents)	55.00c	57.50c	59.00c	60.00c	64.00c	77.00c	80.00c	104.00c	136.00c	136.00c
Rio Tinto plc (pence)	34.23p	38.87p	41.68p	37.47p	37.13p	41.48p	45.10p	54.05p	68.72p	82.54p
Rio Tinto Limited (Aus. cents)	87.11c	102.44c	115.27c	105.93c	89.70c	103.82c	105.42c	135.32c	153.71c	178.83c
Net assets
Fixed Assets (j)	11,701	15,044	14,879	16,136	19,418	20,131	20,848	25,803	75,888	67,651
Other assets less liabilities	1,293	1,380	1,896	1,463	1,804	2,356	2,587	3,026	11,609	8,469
Provisions (including deferred tax)	(2,887)	(3,299)	(3,194)	(3,612)	(4,536)	(6,087)	(6,383)	(7,007)	(16,013)	(14,987)
Net debt	(2,429)	(5,050)	(5,711)	(5,747)	(5,646)	(3,809)	(1,313)	(2,437)	(45,191)	(38,672)
Outside shareholders' interests	(715)	(864)	(827)	(778)	(1,003)	(714)	(791)	(1,153)	(1,521)	(1,823)
Rio Tinto shareholders' funds	6,963	7,211	7,043	7,462	10,037	11,877	14,948	18,232	24,772	20,638
Capital expenditure (k)	(784)	(811)	(1,407)	(1,417)	(1,611)	(2,218)	(2,554)	(3,988)	(4,968)	(8,488)
Acquisitions	(326)	(3,332)	(958)	(106)	-	(3)	(2)	(303)	(37,539)	(9)
Disposals	47	141	299	233	405	1,510	323	24	13	2,572
Cash flow from operations (l)	2,879	3,304	3,285	3,619	3,359	4,265	8,031	10,923	12,569	20,668
Cash flow before financing activities (m)	1,538	(1,502)	213	977	1,024	2,799	4,460	3,714	(34,251)	8,702
Ratios
Operating margin (n)	25%	29%	30%	24%	19%	24%	37%	42%	34%	32%
Net debt to total capital (o)	24%	38%	42%	41%	34%	23%	8%	11%	63%	63%
Underlying/Adjusted earnings: shareholders' funds (p)	19%	21%	23%	21%	16%	22%	37%	44%	35%	45%
Interest cover (q)	12	11	11	13	11	20	59	89	20	10

Notes

Expand

Information for the years 1999 to 2003 is stated under UK GAAP and has not been restated except where indicated below. Shareholders' funds for 2001 and prior years were restated following the implementation of FRS 19 in 2002. Information for the years 2004 to 2008 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 discount. 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. The 31 December 2007 balance sheet has been restated for the revisions to Alcan's fair value accounting which was finalised in 2008. See note 41.

Back to top