Financial KPIs

Relevant links

Xstrata’s Executive Committee and Board monitor a range of financial and non-financial key performance indicators (KPIs), 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).

Xstrata CAGR 80% bar chart for 2003 to 2008

FTSE Diversifieds CAGR 43% bar chart for 2003 to 2008

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.

Xstrata CAGR 59% bar chart for 2003 to 2008

FTSE Diversifieds CAGR 35% bar chart for 2003 to 2008

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.

Xstrata CAGR 10% bar chart for 2003 to 2008

FTSE Diversifieds CAGR 10% bar chart for 2003 to 2008

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.

Xstrata average 1% cost reduction bar chart for 2003 to 2008

FTSE Diversifieds average for 2% cost increase bar chart for 2003 to 2008

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 FTSE 100 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
^**Based on reported cost variance contribution to annual profit variance; adjusted to include mining inflation impact
^†Compound annual growth rate (CAGR) 2004-2008

Further information on the Group’s financial performance is given within the financial review.