Xstrata Plc: Company Profile and SWOT Analysis by ICDResearch

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									Xstrata Plc

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Xstrata Plc                                                                      Financial Snapshot

                                                                                 Operating Performance
Fast Facts
                                                                                 The company reported revenues of US$30,499.00
Headquarters Address                   Bahnhofstrasse 2, Zug, 6301,Switzerland
                                                                                 million during 2010, with a CAGR of 15.56% during
                                                                                 2006–2010. Its revenue grew at an annual rate of
Telephone                               + 41 41 7266070
                                                                                 34.17% over the previous fiscal year. In 2010, the
                                                                                 company recorded an operating margin of 23.20%, as
Fax                                     + 41 41 7266089                          against 8.26% in 2009.

Website                                www.xstrata.com
                                                                                 Revenue and Margins
Ticker Symbol, Stock Exchange          XTA, London Stock Exchange (LON)

Number of Employees                    38,561

Fiscal Year End                        December

Revenue (in US$ million)               30,499.00




SWOT Analysis

Strengths                              Weaknesses                                Return on Equity

Diversified geographical presence      Labor issues and strikes                  The company recorded a return on equity (ROE) of
                                                                                 11.64% for 2010, as compared to its peers, Vale S.A.
                                                                                 (Ticker: VALE5), BHP Billiton (Ticker: BHP) and Rio
Focus on safety                        Reduced liquidity position                Tinto Plc (Ticker: RIO), which recorded ROEs of
                                                                                 26.82%, 26.22% and 24.56% respectively. The
Improved operational profitability                                               company reported an operating margin of 23.20% in
                                                                                 2010.
Leading market position in various
metal segments
                                                                                 Return on Equity
Wide spectrum of business operations

Opportunities                          Threats
Growing demand for coal in Asian       New competitors from emerging
nations                                markets
Growing demand of nickel in Asia and
                                     Political and regulatory risk
Africa

Organic growth pipeline                Threat from substitutes

Rising prices of commodities



                                                                                 Liquidity Position

                                                                                 The company reported a current ratio of 1.29 in 2010,
                                                                                 as compared to its peers, Vale S.A., BHP Billiton and
                                                                                 Rio Tinto Plc, which recorded current ratios of 1.73,
                                                                                 1.93 and 1.96 respectively. As of December 2010, the
                                                                                 company recorded cash and short-term investments
                                                                                 of worth US$1,722.00 million, against US$2,306.00
                                                                                 million current debt. The company reported a debt to
                                                                                 equity ratio of 0.24 in 2010 as compared to its peers,
                                                                                 Vale S.A., BHP Billiton and Rio Tinto Plc, which
                                                                                 recorded debt to equity ratios of 0.39, 0.34 and 0.25
                                                                                 respectively.




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Xstrata Plc - SWOT Profile                                                                                               Page 1
Xstrata Plc

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................11
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................12
      2.2.4       Operational Efficiency ......................................................................................................................................13
      2.2.5       Solvency ..........................................................................................................................................................14
      2.2.6       Valuation ..........................................................................................................................................................15
    2.3       Competitive Benchmarking ..................................................................................................................................16
      2.3.1       Market Capitalization .......................................................................................................................................16
      2.3.2       Efficiency ..........................................................................................................................................................17
      2.3.3       Capital Expenditure ..........................................................................................................................................18
      2.3.4       Valuation ..........................................................................................................................................................19
      2.3.5       Turnover – Inventory and Asset .......................................................................................................................20
      2.3.6       Liquidity ............................................................................................................................................................21
3     Mergers & Acquisitions and Partnerships ........................................................................................... 22
    3.1       M&A and Partnerships Strategy ...........................................................................................................................22
4     Recent Developments ........................................................................................................................... 23
5     SWOT Analysis ...................................................................................................................................... 25
    5.1       SWOT Analysis - Overview ...........................................
								
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