Overview
Record financial and operational performance
Strong financial performance
- Record underlying earnings of US$14.0 billion, 122 per cent above 2009
- Record cash flows from operations of US$23.5 billion, up 70 per cent
- Record underlying EBITDA of US$26.0 billion, up 82 per cent on 2009
- Net debt decreased from US$18.9 billion to US$4.3 billion at the end of 2010
Exceptional operational delivery
- 18 per cent decrease in all injury frequency rate from 2009
- Production at, or above, capacity at many operations
- Record annual production of iron ore
- Annual hard coking coal production up 20 per cent on 2009
- Bauxite production up nine per cent
Growth potential across the business
- US$11 billion of major capital approvals in 2010, with US$13 billion of capital expenditure expected in 2011
- US$5.6 billion committed in 2010 on Pilbara expansion (100 per cent basis) to grow production by more than 50 per cent
- The Oyu Tolgoi copper-gold project came under Rio Tinto’s management, with a pathway to increase ownership of Ivanhoe Mines Ltd to 49 per cent
- US$1 billion approved to modernise hydropower based aluminium portfolio in Canada
Continuing progress on sustainable development
- Reduced greenhouse gas (GHG) emissions intensity by 3.7 per cent from 2008
- 43 per cent decrease in the rate of new cases of occupational illness from 2009
- Community contributions of US$166 million, up 40 per cent on 2009
Dividend
| Dividend declared | 2010 | 2009 | 2008 | 2007 | 2006 |
|---|---|---|---|---|---|
| US cents | 108.00 | 45.00 | 111.22 | 111.23 | 85.07 |
| UK pence | 67.35 | 28.84 | 67.49 | 56.20 | 44.22 |
| Australian cents | 111.21 | 51.56 | 146.22 | 125.72 | 110.69 |
Operating cash flows(a)
US$ millions
- Dividends from equity accounted units
- Cash flow from consolidated operations
Gross sales revenue(a)
US$ millions
- Share of equity accounted units sales revenue
- Consolidated sales revenue
Note
- * All references in this report to net earnings and underlying earnings relate to profit attributable to equity shareholders of Rio Tinto. Underlying earnings is defined below and is reconciled to net earnings in note 2. EBITDA is earnings before interest, taxes, depreciation and amortisation. Underlying EBITDA excludes the same items that are excluded from underlying earnings. EBITDA and underlying EBITDA are reconciled to the income statement in the Financial information by business unit section of the financial statements.
Notes to the performance highlights charts
- (a) The accounting information in these charts is based on EU IFRS accounting information.
- (b) Underlying earnings is the key financial performance indicator which management uses internally to assess performance. It is presented here as an additional measure of earnings to provide greater understanding of the underlying business performance of the Group’s operations. Items excluded from net earnings to arrive at underlying earnings are explained in note 2 to the 2010 financial statements. Both net earnings and underlying earnings deal with amounts attributable to owners of Rio Tinto. However, EU IFRS requires that the profit for the year reported in the income statement should also include earnings attributable to non-controlling interests in subsidiaries.
