De Beers earnings reconciliat

RNS Number : 2543W

Anglo American PLC

24 July 2009

 



News Release

24 July 2009

Anglo American plc notification:  De Beers Société Anonyme interim results 2009

De Beers Société Anonyme ("De Beers") today reported profit before finance charges and taxation for the six months ended 30 June 2009 of US$140 million.

Anglo American plc ("Anglo American") arrives at its profit before finance charges and taxation in respect of De Beers by accounting for the interests arising from the ordinary shares it holds. Anglo American will therefore report an operating profit of US$4 million for the six months ended 30 June 2009 from its investment in De Beers, as reconciled in the table below:

US$ million	6 months ended 30.06.2009
De Beers profit before finance charges and taxation (100%)	140
Remeasurement gains on financial instruments (100%) net of asset disposals	(165)
Reclassification of joint venture retained income	29
Difference in IAS 19 accounting policy	4
De Beers profit before finance charges and taxation - AA plc basis (100%)	8
Contribution to Anglo American's operating profit (45%)	4

De Beers today reported net earnings of $3 million, after remeasurement gains net of asset disposals of $165 million.  After excluding the remeasurement gains and the adjustment for a difference of accounting policy and after including interest arising from the 10% preference shares, Anglo American will be reporting an underlying loss of $67 million.

In the six months ended 30 June 2009, Anglo American received a total of US$29 million in distributions from De Beers, consisting of US$24 million dividends on ordinary shares relating to FY 2008 and a US$5 million dividend representing payment on preference shares.  The dividend on ordinary shares was re-invested in De Beers as a capital loan.

Operating Profit and Underlying Earnings / (Loss) 

Operating Profit is revenue less operating costs before special items and remeasurements. Underlying Earnings is net profit / (loss) attributable to equity shareholders, adjusted for the effect of special items and remeasurements, and any related tax and minority interests.

Special items are those items of financial performance which are material by nature or amount and should therefore be separately presented. These principally relate to impairment and significant closure costs, exceptional legal provisions and profit or loss on disposals.

Remeasurements include (i) adjustments to ensure that the unrealised gains or losses on non-hedge derivative instruments are recorded in underlying earnings in the same period as the underlying transaction against which these instruments provide an economic, but not formally designated, hedge, (ii) foreign currency gains and losses arising on the retranslation of dollar denominated De Beers preference shares held by a rand functional currency subsidiary of the Group and (iii) foreign exchange impacts arising on certain deferred tax balances.

The above figures are unaudited.

Dealing Disclosure Requirements

Under the provisions of Rule 8.3 of the Takeover Code (the "Code"), if any person is, or becomes, "interested" (directly or indirectly) in 1% or more of any class of "relevant securities" of Anglo American or Xstrata plc ("Xstrata"), all "dealings" in any "relevant securities" of that company (including by means of an option in respect of, or a derivative referenced to, any such "relevant securities") must be publicly disclosed by no later than 3.30 pm (London time) on the London business day following the date of the relevant transaction. This requirement will continue until the date on which the offer becomes, or is declared, unconditional as to acceptances, lapses or is otherwise withdrawn or on which the "offer period" otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an "interest" in "relevant securities" of Anglo American or Xstrata, they will be deemed to be a single person for the purpose of Rule 8.3.

Under the provisions of Rule 8.1 of the Code, all "dealings" in "relevant securities" of either Anglo American or Xstrata by Anglo American or Xstrata, or by any of their respective "associates", must be disclosed by no later than 12.00 noon (London time) on the London business day following the date of the relevant transaction.

A disclosure table, giving details of the companies in whose "relevant securities" "dealings" should be disclosed, and the number of such securities in issue, can be found on the Takeover Panel's website at www.thetakeoverpanel.org.uk.

"Interests in securities" arise, in summary, when a person has long economic exposure, whether absolute or conditional, to changes in the price of securities. In particular, a person will be treated as having an "interest" by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities.

Terms in quotation marks are defined in the Code, which can also be found on the Takeover Panel's website. If you are in any doubt as to whether or not you are required to disclose a "dealing" under Rule 8, you should consult the Panel.

 

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