Exhibit 12.1
BHP Billiton Combined
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
Half year ended 31 December 2006 | Year ended 30 June | |||||||||||||||||
2006 | 2005 | |||||||||||||||||
(US$ Millions) | ||||||||||||||||||
In accordance with IFRS | ||||||||||||||||||
Earnings | ||||||||||||||||||
Income before income taxes, excluding minority interest and equity in earnings of associates and JVs, after exceptional items | 6,282.0 | 10,472.0 | 7,153.0 | |||||||||||||||
add: | ||||||||||||||||||
Fixed charges | 326.4 | 618.2 | 392.9 | |||||||||||||||
Distributed income of equity method investees | 2,554.0 | 2,644.0 | 965.0 | |||||||||||||||
subtract: | ||||||||||||||||||
Capitalized interest | (145.0 | ) | (144.0 | ) | (78.0 | ) | ||||||||||||
Preference security dividend requirements of consolidated subsidiaries | (1.0 | ) | (17.0 | ) | (25.0 | ) | ||||||||||||
Total adjusted earnings | 9,016.4 | 13,573.2 | 8,407.9 | |||||||||||||||
Fixed Charges | ||||||||||||||||||
Interest costs (expensed and capitalized) | 264.0 | 522.0 | 294.0 | |||||||||||||||
Portion of rent expense representative of interest factor | 61.4 | 79.2 | 73.9 | |||||||||||||||
Pre-tax earnings required to cover any preferred stock dividend requirements | 1.0 | 17.0 | 25.0 | |||||||||||||||
Total fixed charges | 326.4 | 618.2 | 392.9 | |||||||||||||||
Ratio of Adjusted Earnings to Fixed Charges | 27.6 | 22.0 | 21.4 | |||||||||||||||
Year ended 30 June | ||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||
In accordance with US GAAP | ||||||||||||||||||
Earnings | ||||||||||||||||||
Income before income taxes, excluding minority interest and equity in earnings of associates and JV’s, after exceptional items | 9,692.0 | 6,971.0 | 3,140.0 | 2,261.0 | 2,235.0 | |||||||||||||
add: | ||||||||||||||||||
Fixed charges | 618.2 | 392.9 | 423.8 | 441.9 | 591.2 | |||||||||||||
Distributed income of equity method investees | 2,644.0 | 965.0 | 203.0 | 197.0 | 149.0 | |||||||||||||
subtract: | ||||||||||||||||||
Capitalized interest | (144.0 | ) | (78.0 | ) | (97.0 | ) | (103.0 | ) | (58.0 | ) | ||||||||
Preference security dividend requirements of consolidated subsidiaries | (17.0 | ) | (25.0 | ) | (23.0 | ) | (24.0 | ) | (39.0 | ) | ||||||||
Total adjusted earnings | 12,793.2 | 8,225.9 | 3,646.8 | 2,772.9 | 2,878.2 | |||||||||||||
Fixed Charges | ||||||||||||||||||
Interest costs | 522.0 | 294.0 | 344.0 | 376.0 | 477.0 | |||||||||||||
Portion of rent expense representative of interest factor | 79.2 | 73.9 | 56.8 | 41.9 | 75.2 | |||||||||||||
Pre-tax earnings required to cover any preferred stock dividend requirements | 17.0 | 25.0 | 23.0 | 24.0 | 39.0 | |||||||||||||
Total fixed charges | 618.2 | 392.9 | 423.8 | 441.9 | 591.2 | |||||||||||||
Ratio of Adjusted Earnings to Fixed Charges | 20.7 | 20.9 | 8.6 | 6.3 | 4.9 |