BT 2015 Annual Report Download - page 204

202 BT Group plc
Annual Report 2015
Introduction
We assess the performance of the group using a variety of alternative performance measures. We principally discuss the group’s results on an
adusted basis. he rationale for usin adusted easures is eplained below. esults on an adusted basis are presented before specific ites.
e also eplain financial perforance usin easures that are not defined under  and are therefore tered non- easures.
henon- easures we use are the trend in underlin revenue ecludin transit and in underlin operatin costs ecludin transit
as well as in reported and adusted  reported and noralised free cash ow and net debt.  reconciliation fro these non- easures
to the nearest measure prepared in accordance with IFRS is presented below. The alternative performance measures we use may not be directly
comparable with similarly titled measures used by other companies.
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he roups incoe stateent and seental analsis separatel identif tradin results before specific ites. he directors believe that presentation
of the roups results in this wa is relevant to an understandin of the roups financial perforance as specific ites are identified b virtue of their
sie nature or incidence. his presentation is consistent with the wa that financial perforance is easured b anaeent and reported to the
Board and the
Operating Committee and assists in providing a meaningful analysis of the trading results of the group. In determining whether an
event or transaction is specific anaeent considers uantitative as well as ualitative factors such as the freuenc or predictabilit of occurrence.
aples of chares or credits eetin the above definition and which have been presented as specific ites in the current andor prior ears include
disposals of businesses and investments, regulatory settlements, historic insurance or litigation claims, business restructuring programmes, asset
impairment charges, property rationalisation programmes, net interest on pensions and the settlement of multiple tax years. In the event that other
ites eet the criteria which are applied consistentl fro ear to ear the are also treated as specific ites.
pecific ites are disclosed in note  to the consolidated financial stateents.
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Underlin revenue and underlin operatin costs are easures which see to reect the underlin perforance of the roup that will contribute
to lon-ter sustainable profitable rowth. s such the eclude the ipact of acuisitions or disposals forein echane oveents and
specific ites. e focus on the trends in underlin revenue and underlin operatin costs ecludin transit as transit trac is low-arin and
issinificantl aected b reductions in obile terination rates.
A reconciliation from the decrease in reported revenue and in reported operating costs, the most directly comparable IFRS measures, to the decrease
in underlying revenue and underlying operating costs excluding transit, is set out below.
Year ended 31 March
2015
%
2014
%
2013
%
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pecific ites 0. 1. 0.
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Transit revenue 0.6 1.0 1.3
Acquisitions and disposals –0.1 0.2
Foreign exchange movements 1.4 0.1 0.9
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Year ended 31 March
2015
%
2014
%
2013
%
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Depreciation and amortisation 0.3 1.2 0.
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pecific ites 1.0 1. .
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Transit costs 1.0 1.4 1.7
Acquisitions and disposals –0.1 0.2
Foreign exchange movements 1.5 –1.0
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