Rio Tinto
Annual review 2011

Summary financial information by business unit

At 31 December

This summary financial information by business unit section has been extracted from the full financial statements contained within the 2011 Annual report.

  Gross sales revenue(a) EBITDA(b) Net earnings(c)
  2011 US$m 2010 US$m 2011 US$m 2010 US$m 2011 US$m 2010 US$m
Iron Ore 29,909 24,024 20,930 16,605 12,853 10,189
Aluminium 12,159 11,313 1,763 1,888 442 611
Copper 7,634 7,797 3,394 4,499 1,932 2,530
Energy 7,327 5,652 2,232 2,299 1,074 1,187
Diamonds & Minerals 3,220 3,035 703 606 252 328
Other operations 8,246 10,151 411 757 (120) 237
Other (2,817) (2,758) (912) (676) (884) (1,095)
Underlying EBITDA/earnings     28,521 25,978 15,549 13,987
Share of equity accounted unit sales (5,085) (4,043)        
Items excluded from underlying earnings(d) (56) 115 575 (9,723) 251
Consolidated sales revenues/EBITDA/net earnings 60,537 55,171 28,636 26,553 5,826 14,238

  Capital expenditure(e) Depreciation & amortisation Operating assets(f)
  2011 US$m 2010 US$m 2011 US$m 2010 US$m 2011 US$m 2010 US$m
Iron Ore 4,757 1,716 1,203 993 13,368 11,628
Aluminium 1,957 963 1,098 1,062 26,204 30,815
Copper 3,784 990 538 568 12,094 7,718
Energy 1,327 685 520 367 8,164 3,694
Diamonds & Minerals 639 300 337 268 3,605 4,580
Other operations 729 570 535 587 3,830 7,160
Other (895) (671) (414) (408) (3,293) (1,977)
Total 12,298 4,553 3,817 3,437 63,972 63,618
Less: Net debt         (8,451) (4,071)
Less: EAU funded balances excluded from net debt         (2,982) (1,300)
Equity attributable to Rio Tinto’s shareholders         52,539 58,247

Business units have been classified according to the Group’s management structure. Generally, business units are allocated to product groups based on their primary product. The Aluminium group excludes Pacific Aluminium, Other Aluminium and the Cable division of Alcan Engineered Products which are included in “Other operations”.

  1. (a) Gross sales revenue includes 100 per cent of subsidiaries’ sales revenue and the Group’s share of the sales revenue of equity accounted units (after adjusting for sales to subsidiaries).
  2. (b) 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. Underlying EBITDA excludes the same items that are excluded from Underlying earnings.
  3. (c) Net earnings represent profit after tax for the period attributable to the owners of the Rio Tinto Group. Earnings of subsidiaries and equity accounted units are stated before finance items but after the amortisation of discount related to provisions. Earnings attributed to business units do not include amounts that are excluded in arriving at Underlying earnings.
  4. (d) Underlying earnings is the key financial performance indicator which management uses internally to assess performance. Underlying earnings is defined and reconciled to net earnings in note 2 of the 2011 financial statements.
  5. (e) 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.
  6. (f) Operating assets of subsidiaries comprise net assets excluding post retirement assets and liabilities, net of tax, and are before deducting net debt. Operating assets are less non-controlling interests, which are calculated by reference to the net assets of the relevant companies (ie net of such companies’ debt).