REG - Rio Tinto - Rio Tinto 2014 preliminary final report <Origin Href="QuoteRef">RIO.L</Origin> - Part 3
12/02/2015 07:00
- Part 3: For the preceding part double click ID:nRSL7193Eb
of other comprehensive losses of equity accounted units, net of tax - (1)
Tax relating to components of other comprehensive income 215 (641)
(520) 1,618
Items that have been/may be reclassified subsequently to profit or loss:
Currency translation adjustment (2,004) (2,657)
Currency translation on companies disposed of, transferred to the income statement 53 81
Fair value movements:
- Cash flow hedge (losses)/gains (48) 195
- Cash flow hedge losses/(gains) transferred to the income statement 55 (92)
- Losses on revaluation of available for sale securities (36) (101)
- Gains on revaluation of available for sale securities transferred to the income statement 6 146
Share of other comprehensive loss of equity accounted units, net of tax (44) (44)
Tax relating to components of other comprehensive income (9) (56)
(2,027) (2,528)
Other comprehensive loss for the year, net of tax (2,547) (910)
Total comprehensive income for the year 3,952 169
- attributable to owners of Rio Tinto 4,322 3,261
- attributable to non-controlling interests (370) (3,092)
(a) The most significant components of the actuarial (losses)/gains are (i) the impact of changes in the financial
assumptions and (ii) the actual return on invested pension assets relative to the assumed return. In relation to the
financial assumptions, the average discount rate used for valuing the pension and other post-employment benefit obligations
fell during 2014 reflecting the lower yield on corporate bonds.
Group cash flow statement
Years ended 31 December
2014 2013
US$m US$m
Cash flows from consolidated operations (a) 18,896 19,531
Dividends from equity accounted units 298 600
Cash flows from operations 19,194 20,131
Net interest paid (981) (1,164)
Dividends paid to holders of non-controlling interests in subsidiaries (309) (191)
Tax paid (3,618) (3,698)
Net cash generated from operating activities 14,286 15,078
Cash flows from investing activities
Acquisitions of subsidiaries, joint ventures and associates - 4
Disposals of subsidiaries, joint ventures and associates (b) 887 1,896
Purchase of property, plant and equipment and intangible assets (8,162) (13,001)
Sales of financial assets 172 224
Purchases of financial assets (24) (75)
Other funding of equity accounted units (117) (88)
Other investing cash flows (c) 741 94
Cash used in investing activities (6,503) (10,946)
Cash flows before financing activities 7,783 4,132
Cash flows from financing activities
Equity dividends paid to owners of Rio Tinto (3,710) (3,322)
Proceeds from additional borrowings 442 3,954
Repayment of borrowings (3,476) (1,832)
Proceeds from issue of equity to non-controlling interests (d) 1,291 159
Other financing cash flows 17 107
Net cash flow from financing activities (5,436) (934)
Effects of exchange rates on cash and cash equivalents (156) (261)
Net increase in cash and cash equivalents 2,191 2,937
Opening cash and cash equivalents less overdrafts 10,209 7,272
Closing cash and cash equivalents less overdrafts (e) 12,400 10,209
Group cash flow statement (continued)
(a) Cash flows from consolidated operations
Profit for the year from continuing operations 6,499 1,079
Adjustments for:
- Taxation 3,053 2,426
- Finance items 3,008 4,407
- Share of profit after tax of equity accounted units (625) (698)
- Impairment charges net of reversals after tax of investments in equity accounted units (589) 216
- Net losses/(gains) on disposal and consolidation of interests in businesses 563 (787)
- Impairment charges less reversals 1,062 7,315
- Depreciation and amortisation 4,860 4,791
- Provisions (including exchange differences on provisions) 712 1,449
Utilisation of provisions (973) (871)
Utilisation of provision for post-retirement benefits (296) (635)
Change in inventories 937 (330)
Change in trade and other receivables 962 84
Change in trade and other payables (380) 803
Other items 103 282
18,896 19,531
(b) Disposals of subsidiaries, joint ventures and associates related primarily to the disposal of the Clermont Joint
Venture.
(c) Other investing cash flows in 2014 mainly relate to the disposal of the Group's St James's Square properties.
(d) The most significant movement relates to Turquoise Hill Resources' rights issue at the beginning of 2014, which
increased non-controlling interests by US$1,158 million. Refer to the 'Statement of changes in equity' on page 36, and to
'Acquisitions and disposals' on page 40.
(e) Closing cash and cash equivalents less overdrafts at 31 December 2014 differ from cash and cash equivalents on the
balance sheet as they include overdrafts of US$23 million (31 December 2013: US$7 million) reported within 'Borrowings and
other financial liabilities'.
Group balance sheet
At 31 December
2014 2013
US$m US$m
Non-current assets
Goodwill 1,228 1,349
Intangible assets 5,880 5,421
Property, plant and equipment 68,693 70,827
Investments in equity accounted units 4,868 3,957
Inventories 397 511
Deferred tax assets 3,540 3,555
Trade and other receivables 1,304 2,140
Other financial assets (including tax recoverable and loans to equity accounted units) 792 983
86,702 88,743
Current assets
Inventories 4,350 5,737
Trade and other receivables 3,623 4,667
Other financial assets (including tax recoverable and loans to equity accounted units) 417 710
Cash and cash equivalents 12,423 10,216
20,813 21,330
Assets of disposal groups held for sale (a) 312 952
Total assets 107,827 111,025
Current liabilities
Borrowings and other financial liabilities (2,684) (3,926)
Trade and other payables (7,437) (8,400)
Tax payable (800) (1,126)
Provisions including post retirement benefits (1,299) (1,738)
(12,220) (15,190)
Non-current liabilities
Borrowings and other financial liabilities (22,535) (24,625)
Trade and other payables (871) (576)
Tax payable (370) (468)
Deferred tax liabilities (3,574) (4,140)
Provisions including post retirement benefits (13,303) (12,343)
(40,653) (42,152)
Liabilities of disposal groups held for sale (a) (360) (181)
Total liabilities (53,233) (57,523)
Net assets 54,594 53,502
Capital and reserves
Share capital (b)
- Rio Tinto plc 230 230
- Rio Tinto Limited 4,535 4,911
Share premium account 4,288 4,269
Other reserves 11,122 12,871
Retained earnings 26,110 23,605
Equity attributable to owners of Rio Tinto 46,285 45,886
Attributable to non-controlling interests 8,309 7,616
Total equity 54,594 53,502
Group balance sheet (continued)
(a) Assets and liabilities held for sale as at 31 December 2014 comprise Rio Tinto's interests in the Blair Athol coal
project and South Gobi Resources Limited.
(b) At 31 December 2014, Rio Tinto plc had 1,414.1 million ordinary shares on issue and held by the public, and Rio Tinto
Limited had 435.8 million shares on issue and held by the public. No shares in Rio Tinto Limited were held by Rio Tinto plc
at 31 December 2014 (31 December 2013: nil). As required to be disclosed under the ASX Listing Rules, the net tangible
assets per share amounted to US$21.18 (31 December 2013: US$21.16).
Group statement of changes in equity
Year ended 31 December 2014
Attributable to owners of Rio Tinto
Share capital Share Other Retained Total Non-controlling Total
US$m premium reserves earnings US$m interests equity
US$m US$m US$m US$m US$m
Opening balance 5,141 4,269 12,871 23,605 45,886 7,616 53,502
Total comprehensive income - - (1,689) 6,011 4,322 (370) 3,952
for the year (a)
Currency translation arising on Rio Tinto Limited's share capital (376) - - - (376) - (376)
Dividends - - - (3,710) (3,710) (304) (4,014)
Own shares purchased from Rio Tinto shareholders to satisfy share options - - (129) (31) (160) - (160)
Treasury shares reissued and other movements - 19 - 3 22 - 22
Newly consolidated operations - - - - - 6 6
Change in equity held by Rio Tinto - - - 36 36 (29) 7
Equity issued to holders of non-controlling interests (b) - - - - - 1,291 1,291
Companies no longer consolidated - - - - - (18) (18)
Employee share options and other IFRS 2 charges taken to the income statement - - 69 196 265 117 382
Closing balance 4,765 4,288 11,122 26,110 46,285 8,309 54,594
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