Business Review | Key Performance Indicators
Xstrata’s Executive Committee and Board monitor a range of financial and non-financial key performance indicators, reported on a monthly or quarterly basis, to measure performance over time.
Earnings per share* | US¢
Earnings per share show attributable profit earned per share to provide a basis for comparison. Xstrata’s growth in earnings per share is shown compared to the average for Anglo American, BHP Billiton and Rio Tinto (FTSE Diversifieds).
EBITDA* | $m
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** | % of operating costs
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.
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.
*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) 2003-2007
Employees† | Turnover and Diversity %
Employee turnover is a measure of our success in retaining our people. Turnover includes voluntary resignations, redundancies and performance-related terminations. Turnover and diversity data is calculated as a percentage of total permanent employees (excluding contractors) and is shown for all available reporting periods.
Employees† | Training
Ongoing training and education is conducted both in the workplace and at external institutions. Both training hours and training spend are shown as an average per employee including contractors. Data is shown for all available reporting periods.
Health** | Occupational Health
Xstrata’s operations aim to identify, assess and control occupational health hazards and, where practicable, to eliminate work-related diseases. The charts show the number of new occupational illness cases reported by employees and contractors, together with 2007 illnesses by type.
Safety** | Injury Frequency Rates
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 injury frequency rate and lost time injury frequency rates are reported per million hours worked and include contractors.
Corporate Social Involvement** | $million
Xstrata sets aside a minimum of 1% of annual Group profit before tax to fund initiatives that benefit local communities. The charts show the amount set aside for initiatives in each geographic region in which Xstrata operates and by category.
*Includes 2007 acquisitions from date of acquisition: Eland, Anvill Hill and Tahmoor
**Includes 2006 acquisitions from date of acquisition: Falconbridge, Tintaya
†Includes 2006 acquisitions pro forma from 01.01.06: Falconbridge, Tintaya
††Restated due to revised total employee numbers
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 Sustainability section or as a hard copy on request.
Environmental incidents††
Xstrata’s operations record environmental incidents according to severity. Our target is to achieve zero category 3, 4 or 5 incidents, representing significant, serious or disastrous incidents. Category 3 incidents cause moderate, reversible environmental impact and require moderate remediation. No category 4 or 5 incidents have ever occurred.
Target: zero category 3, 4 or 5 incidents.
Greenhouse gases†† | CO2 equivalents million tonnes
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.
Target: 5% reduction in carbon intensity over 2004 by 2010*.
Water†† | megalitres
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.
Target: 5% reduction in fresh water intensity in water-scarce regions*.
Energy usage†† | petajoules
Efficiency and energy consumption reductions drive both cost savings and emissions reductions. The large increase in energy consumption during 2007 reflects the acquisitions made during 2006 and in particular the use of oil by the Falcondo operation.
Target: 3% reduction in energy intensity by 2012*.
*Group targets compiled from targets set at commodity business level
†Restated following further research into Xstrata’s carbon footprint and third-party verification
††2006 data excludes Falconbridge acquistion
