Strategic Report

We use certain alternative performance measures (“APMs”) in this Annual Report that are used by management to assess the underlying performance of the business and as information in recommending dividends. EBITDA, which is widely used in the industry, represents profit from operations plus depreciation and amortisation of productive assets (including the Group’s share in depreciation and amortisation of associates and joint ventures) adjusted for gain/(loss) on disposals of PPE and intangible assets and for share in associates’ and joint ventures’ non-operating income/(expenses).

A reconciliation of Operating Profit to EBITDA is set out in the Appendix. Free Cash Flow is used by the Board of Directors, in conjunction with Net Debt (being Total Debt Finance less Cash and Cash Equivalents) as a guide in recommending dividend payments. Free Cash Flow is determined as the aggregate amount of the following items: Net cash from operating activities from continuing operations, CAPEX, proceeds from disposal of PPE, interest received and dividends received. A reconciliation of Free Cash Flow to Net cash from operating activities is set out in the Appendix.