Notes to the Pro Forma Consolidated Income Statement
The pro forma financial information has not been audited by Ernst & Young LLP. The 2006 Pro Forma Income Statement and segmental information for the Group is prepared to illustrate the effect the Falconbridge, Cerrejón and Tintaya acquisitions, rights issue, the May 2006 new shares issue and related debt draw downs, would have had if they had taken place on 1 January 2006. The pro forma information for 2006 excludes certain exceptional items relating to the Falconbridge acquisition, so as not to distort the results of the Group by these one off items. The exceptional items excluded include the goodwill impairment and certain restructuring costs.
Following the sale of the aluminium business unit in 2007, the results for aluminium have been reclassified to discontinued operations.
Reconciliation of Pro Forma and Statutory Consolidated Income Statements
| Statutory | Pro Forma | |||||
|---|---|---|---|---|---|---|
| US$m | Before exceptional items | Exceptional items | Total 2007 | Before exceptional items | Exceptional items | Total 2006 |
| Revenue | ||||||
| Statutory revenue | 29,084 | – | 29,084 | 17,632 | – | 17,632 |
| Cerrejón pre-acquisition revenue | – | – | – | 140 | – | 140 |
| Tintaya pre-acquisition revenue | – | – | – | 329 | – | 329 |
| Falconbridge Group pre-acquisition revenue | – | – | 8,776 | – | 8,776 | |
| Total | 29,084 | – | 29,084 | 26,877 | – | 26,877 |
| EBITDA | ||||||
| Statutory EBITDA | 11,008 | 263 | 11,271 | 7,107 | 29 | 7,136 |
| Cerrejón pre-acquisition EBITDA | – | – | – | 71 | – | 71 |
| Tintaya pre-acquisition EBITDA | – | – | – | 218 | – | 218 |
| Falconbridge Group pre-acquisition EBITDA | – | – | 2,957 | (601) | 2,356 | |
| Falconbridge fair value and pro forma adjustments | – | – | 88 | 651 | 739 | |
| Total | 11,008 | 263 | 11,271 | 10,441 | 79 | 10,520 |
| EBIT | ||||||
| Statutory EBIT | 8,881 | 263 | 9,144 | 5,863 | (1,795) | 4,068 |
| Cerrejón pre-acquisition EBIT | – | – | – | 45 | – | 45 |
| Tintaya pre-acquisition EBIT | – | – | – | 175 | – | 175 |
| Falconbridge Group pre-acquisition EBIT | – | – | – | 2,632 | (601) | 2,031 |
| Falconbridge fair value and pro forma adjustments | – | – | (375) | 2,475 | 2,100 | |
| Total | 8,881 | 263 | 9,144 | 8,340 | 79 | 8,419 |
| Profit | ||||||
| Statutory profit | 5,750 | 119 | 5,869 | 3,755 | (1,849) | 1,906 |
| Cerrejón pre-acquisition profit | – | – | – | 30 | – | 30 |
| Tintaya pre-acquisition profit | – | – | – | 136 | – | 136 |
| Falconbridge Group pre-acquisition profit | – | – | 1,619 | (403) | 1,216 | |
| Fund raising and cost of acquisitions adjustments | – | – | (167) | – | (167) | |
| Fair value and pro forma adjustments | – | – | – | (215) | 2,392 | 2,177 |
| Total | 5,750 | 119 | 5,869 | 5,158 | 140 | 5,298 |