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Notes to the financial statements

3. Reconciliation of Underlying earnings to Profit for the financial year attributable to equity shareholders of the Company

The table below analyses the contribution of each segment to the Group's operating profit (including attributable share of operating profit from associates) for the financial year and Underlying earnings, which the directors consider to be a useful additional measure of the Group's performance. A reconciliation from 'Profit for the financial year attributable to equity shareholders of the Company' to 'Underlying earnings for the financial year' is given in note 12.

Due to the portfolio and management structure changes announced in October 2009, the segments have changed from those reported at 31 December 2008. Comparatives have been reclassified to align with current year presentation.

Operating profit (including attributable share of operating profit from associates) is reconciled to 'Underlying earnings' and 'Profit for the financial year attributable to equity shareholders of the Company' in the table below:

  2009
US$ million Operating
profit/(loss)
before special
items and
remeasurements(1)
  Operating
profit/(loss)
after special
items and
remeasurements
Operating
special
items and
remeasurements(2)
  Net
profit on
disposals(2)
Financing
special
items and
remeasurements(2)
Net
interest,
tax and
minority
interests
Total
By segment                  
Platinum 32   (72) 104   323 - 12 44
Diamonds 64   (139) 203   20 - (154) (90)
Copper 2,010   2,114 (104)   - - (809) 1,201
Nickel 2   (86) 88   - - (15) (13)
Iron Ore and Manganese 1,489   350 1,139   6 - (918) 571
Metallurgical Coal 451   423 28   33 - (129) 322
Thermal Coal 721   715 6   21 - (204) 517
Exploration (172)   (172) -   10 - 5 (167)
Corporate Activities and Unallocated Costs (146)   (377) 231   - - (73) (219)
Core operations 4,451   2,756 1,695   413 - (2,285) 2,166
Other Mining and Industrial 506   361 145   1,219 - (103) 403
Total/Underlying earnings 4,957   3,117 1,840   1,632 - (2,388) 2,569(3)
Underlying earnings adjustments (1,840)   1,632 (135) 199 (144)
Profit for the financial year attributable to equity shareholders of the Company 2,425
  2008
US$ million Operating
profit/(loss)
before special
items and
remeasurements(1)
  Operating
profit/(loss)
after special
items and
remeasurements
Operating
special
items and
remeasurements(2)
  Net
profit on
disposals(2)
Financing
special
items and
remeasurements(2)
Net
interest,
tax and
minority
interests
Total
By segment                  
Platinum 2,169   2,150 19   106 - (913) 1,256
Diamonds 508   282 226   18 - (252) 256
Copper 1,892   1,825 67   142 - (848) 1,044
Nickel 123   (7) 130   (1) - (158) (35)
Iron Ore and Manganese 2,554   1,934 620   (4) - (1,404) 1,150
Metallurgical Coal 1,110   1,088 22   - - (346) 764
Thermal Coal 1,078   1,080 (2)   - - (324) 754
Exploration (212)   (162) (50)   - - 12 (200)
Corporate Activities and Unallocated Costs (219)   (305) 86   2 - (267) (486)
Core operations 9,003   7,885 1,118   263 - (4,500) 4,503
Other Mining and Industrial 1,082   843 239   764 - (348) 734
Total/Underlying earnings 10,085   8,728 1,357   1,027 - (4,848) 5,237(3)
Underlying earnings adjustments (1,357)   1,027 36 272 (22)
Profit for the financial year attributable to equity shareholders of the Company 5,215
(1)
Operating profit includes attributable share of associates' operating profit which is reconciled to 'Share of net income from associates' in note 2.
(2)
Special items and remeasurements are set out in note 7.
(3)
This represents Underlying earnings for the financial year and is equal to profit for the financial year attributable to equity shareholders of the Company before special items and remeasurements.

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Annual Report 2009