Question 7 Following is the consolidated results as presented in the annual report of Fortescue Metals Group Limited ( file C priyantha courses 202020 semseter 202 202020 FNCE2003 Assignment 201 Internal Fortescu 20Metals fy19 annual report including appendix 4e pdf ) Consolidated income statement For the year ended 30 June 2019 Note 2019 US$m 2018 US$m Operating sales revenue 3 9,965 6,887 Cost of sales 5 (5,115) (4,930) Gross profit 4,850 1,957 Other income 4 110 30 Other expenses 6 (138) (114) Profit before income tax and net finance expenses 4,822 1,873 Finance income 7 26 24 Finance expenses 7 (279) (652) Profit before income tax 4,569 1,245 Income tax expense 14 (1,382) (367) Profit for the year after income tax 3,187 878 Profit for the year is attributable to Equity holders of the Company 3,187 879 Non controlling interest (1) Profit for the year after income tax 3,187 878 Note Cents Cents Earnings per share attributable to the ordinary equity holders of the Company Basic earnings per share 8 103 1 28 2 Diluted earnings per share 8 102 9 28 1 What is your assessment about the performance of the company over the years (calculations are not necessary ) 2 marks In terms of Core business activities there is an increase in sales as well as a decrease in financial expense What more information you need to draw reasonable conclusion about the performance of the firm (calculations are not necessary ) 2 marks Consolidated income statement For the year ended 30 June 2011 2011 2010 Note US$m US$m Operating sales revenue 3 9,965 6,887 Cost of sales Ln (5,115) (4,930) Gross profit 4,850 1,957 Other income 4 110 30 Other expenses 6 (138) (114) Profit before income tax and net finance expenses 4,822 1,873 Finance income 7 26 24 Finance expenses (279) (652) Profit before income tax 4,569 1,2 45 Income tax expense 14 (1,382) (367) Profit for the year after income tax 3,187 878 Profit for the year is attributable to Equity holders of the Company 3,187 879 Non controlling interest (1) Profit for the year after income tax 3,187 878 Note Cents Cents Earnings per share attributable to the ordinary equity holders of the Company Basic earnings per share 8 103 1 28 2 Diluted earnings per share 8 102 9 28 1

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Question 7 Following is the consolidated results as presented in the annual report of Fortescue Metals Group Limited. ( file:///C:/priyantha/courses%202020/semseter%202-%202020/FNCE2003/Assignment%201/Internal/Fortescu%20Metals-fy19-annual-report-including-appendix-4e.pdf ). Consolidated income statement For

Question 7

Following is the consolidated results as presented in the annual report of Fortescue Metals Group Limited. (file:///C:/priyantha/courses%202020/semseter%202-%202020/FNCE2003/Assignment%201/Internal/Fortescu%20Metals-fy19-annual-report-including-appendix-4e.pdf).

Consolidated income statement

For the year ended 30 June 2019

Note

2019

US$m

2018

US$m

Operating sales revenue

9,965

6,887

Cost of sales

(5,115)

(4,930)

Gross profit

4,850

1,957

Other income

110

Other expenses

(138)

(114)

Profit before income tax and net finance expenses

4,822

1,873

Finance income

Finance expenses

(279)

(652)

Profit before income tax

4,569

1,245

Income tax expense

(1,382)

(367)

Profit for the year after income tax

3,187

878

Profit for the year is attributable to:

Equity holders of the Company

3,187

879

Non-controlling interest

(1)

Profit for the year after income tax

3,187

878

Note

Cents

Earnings per share attributable to the ordinary

equity holders of the Company:

Basic earnings per share

103.1

28.2

Diluted earnings per share

102.9

28.1

What is your assessment about the performance of the company

over the years (calculations are not necessary )? [2 marks]

In terms of Core business activities there is an increase in sales as well as a decrease in financial expense.

What more information you need to draw reasonable conclusion

about the performance of the firm (calculations are not necessary )? [2 marks]

Consolidated income statement For the year ended 30 June 2011 2011 2010 Note US$m US$m Operating sales revenue 3 9,965 6,887 Cost of sales Ln (5,115) (4,930) Gross profit 4,850 1,957 Other income 4 110 30 Other expenses 6 (138) (114) Profit before income tax and net finance expenses 4,822 1,873 Finance income 7 26 24 Finance expenses (279) (652) Profit before income tax 4,569 1,2 45 Income tax expense 14 (1,382) (367) Profit for the year after income tax 3,187 878 Profit for the year is attributable to: Equity holders of the Company 3,187 879 Non-controlling interest (1) Profit for the year after income tax 3,187 878 Note Cents Cents Earnings per share attributable to the ordinary equity holders of the Company: Basic earnings per share 8 103.1 28.2 Diluted earnings per share 8 102.9 28.1