Earnings per share*

Earnings per share show attributable profit earned per share to provide a basis for comparison between different companies. Xstrata’s growth in earnings per share is shown compared to the average for BHP Billiton, Anglo American and Rio Tinto (FTSE Diversifieds).

EBITDA*

Xstrata’s earnings before interest, tax, depreciation and amortisation (EBITDA) before exceptional items are shown compared to the average for the FTSE Diversified miners. This provides an indication of the rate of earnings growth achieved.

EBITDA* Margin

The EBITDA margin shows earnings before interest, tax, depreciation and amortisation (EBITDA) before exceptional items as a percentage of revenue. It is a measure of how efficiently revenue is converted into EBITDA.

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 the FTSE Diversifieds. Cost savings are shown as a percentage of net operating costs, based on contribution to EBIT variance.

*Xstrata EPS and EBITDA on statutory basis (i.e acquisitions included from date of transaction completion); EPS adjusted for rights issues. Weighted average for Anglo American, BHP Billiton and Rio Tinto; BHP Billiton adjusted to December financial year for comparison purposes

**Based on reported cost variance contribution to annual profit variance; FTSE Diversifieds adjusted to include mining inflation impact

†Compound annual growth rate (CAGR) 2002-2006

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, benchmarked against the FTSE100 index of the largest UK companies.

Employees

Employee turnover is a measure of our success in retaining our people. Turnover is shown below for Xstrata only (2005) and for the enlarged Xstrata Group in 2006, including the acquisitions from the date of completion. 2005 data is not available for the former Falconbridge businesses.

Health

Xstrata’s operations aim to identify, assess and control occupational health hazards and, where practicable, to eliminate work-related diseases. The bar charts below show the number of new occupational illness cases reported by Xstrata only (2005) and by the enlarged Xstrata Group in 2006, showing the contribution of the former Falconbridge business from the date of acquisition.

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. The total recordable frequency rate is reported per million hours worked. The data below shows Xstrata excluding Falconbridge, with the former Falconbridge Group reported separately.

Corporate Social Involvement

Xstrata sets aside 1% of annual Group profit before tax to fund initiatives that benefit local communities. This chart shows the amount set aside for initiatives in each geographic region in which Xstrata operates and by category. 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.

Xstrata also publishes a separate Sustainability Report, which includes a full set of indicators, using the Global Reporting Initiative G3 guidelines. The report is available from the Sustainability section or as a hard copy on request.

Greenhouse Gases

Greenhouse gas emissions (GHGs) are measured as CO2 equivalent tonnes. Xstrata’s main sources of GHGs are from electricity used and from methane found in underground coal seams in some regions. We seek to reduce greenhouse gas emissions through improved energy efficiency and by using coal-seam methane to generate power wherever possible.

Water

Effective water management and conservation is critical to Xstrata’s operations, a number of which are located in arid regions. Xstrata measures raw water used and water recycled. We seek to reduce raw water extracted and progressively increase the amount of water that is recycled.

Waste

Xstrata’s operations measure hazardous and non-hazardous waste. The figures reported exclude over-burden removed during mining activities. Every site is required to implement a full waste management plan, progressively decreasing the volume of waste sent to landfill. Waste is reported on a standalone basis for Xstrata excluding Falconbridge.

SO2 Emissions

Sulphur dioxide (SO2) is Xstrata’s primary air emission. SO2 emissions are predominantly generated from metallurgical operations. We seek to reduce SO2 emissions year on year at each relevant location.