Return on Capital

Return on capital is calculated by dividing earnings before interest and tax (EBIT) before non-trading items† by capital employed and is an important measure of how effectively Xstrata earns profit from the money invested in its operations.

Real Cost Savings

Sustainable real cost savings are an important driver of value and a measure of our operational excellence. Xstrata's performance in achieving real cost savings is shown against the average for BHP Billiton, Anglo American and Rio Tinto (FTSE Diversifieds). Cost savings are shown as % of net operating costs, based on contribution to EBIT variance.

EBITDA Margin

Xstrata's EBITDA margin shows earnings before interest, tax, depreciation and amortisation (EBITDA) before non-trading items† as a percentage of Group revenue. It is a measure of how efficiently revenue is converted into EBITDA.

Total Shareholder Return

TSR calculates the total return from an investment in Xstrata, calculated from the growth in share price together with the dividend income from the shares, with dividend income assumed to be reinvested. The graph shows the total return for a £100 investment in Xstrata plc from initial public offering, benchmarked against the FTSE100 index of the largest UK companies.

Employees

We aim to attract and retain the very best people and provide them with the resources they require to achieve operational excellence. Employee turnover is a measure of our success in retaining our people.

Health

Xstrata's operations aim to identify, assess and control occupational health hazards and, where practicable, to eliminate work-related diseases. Every new case of occupational diseases is reported. This bar chart shows number of new diseases recorded by commodity business over the last two years.

Safety

We believe that every work-related incident, illness and injury is preventable. Total recordable injuries include lost time injuries, medical treatment injuries and restricted work injuries, providing a more complete measure of safety performance. We also report the lost time injury frequency rate, to provide a basis for comparison with our industry peers. Both frequency rates are reported per million hours worked.

Environment

Xstrata's operations report every environmental incident according to defined categories to indicate the scale of the incident. Category 1 represents a very minor incident with negligible environmental impact that is reversible; category 5 represents a major or critical incident which requires major remediation. We aim to limit the environmental impact of our operations, and, in particular, operate without any category 3, 4 or 5 incidents.

Environmental fines and penalties In 2005, Xstrata's operations incurred no environmental fines or penalties, compared to one fine for AUD1,500 in 2004, relating to the non-capture of two blasts at Ravensworth East coal mine, New South Wales.

No Category 4 or 5 incidents occurred in 2004 or 2005

Community and social

Xstrata sets aside 1% of annual Group profit before tax to fund initiatives that benefit communities associated with our operations and employees. This chart shows the amount set aside for initiatives in each geographic region in which Xstrata operates. Each operation, together with local communities, develops a social involvement plan to identify and support initiatives in the areas of health, education, environment, job creation and enterprise, community development and arts and culture.