BT 2012 Annual Report Download - page 176

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Additional information
Financial and operational statistics
Financial statistics
2012 2011 2010 2009 2008
£m £m £m £m £m
Decrease in underlying revenue excluding transita(1.9)% (3.0)% (2.9)%
Adjusted EBITDAb,c 6,064 5,886 5,639 5,238 5,784
Free cash flowd
Adjustedb2,522 2,223 2,106 772 2,266
Reported 2,318 2,011 1,933 737 1,823
Net debte9,082 8,816 9,283 10,361 9,460
Operating costs excluding depreciation and amortisationb13,630 14,563 15,650 16,545 15,279
Expenditure on research and development
Research and development expense 285 389 444 590 532
Amortisation of internally developed computer software 536 444 491 431 325
821 833 935 1,021 857
Capital expenditure
Additions to property, plant and equipment comprised:
Land and buildings 37 20 29 23 33
Network infrastructure and other equipment
Transmission equipment 1,121 985 902 1,067 1,117
Exchange equipment 46 43 29 44 83
Other network equipment 794 851 753 899 1,060
Other
Computers and office equipment 95 92 115 140 181
Motor vehicles and other 43 87 33 73 50
Total additions to property, plant and equipment 2,136 2,078 1,861 2,246 2,524
(Decrease) increase in engineering stores (1) 12 43 3 (11)
Total additions 2,135 2,090 1,904 2,249 2,513
Computer software additions 459 500 629 839 826
Total capital expenditure 2,594 2,590 2,533 3,088 3,339
(Decrease) increase in payables (16) 55 (24) (6) (24)
Cash outflow on capital expenditure 2,578 2,645 2,509 3,082 3,315
aData not available for 2009 and 2008.
bBefore specific items.
cEBITDA is defined on page 167.
dFree cash flow is defined on page 168.
eNet debt is defined on page 169.
Financial ratios
Year ended 31 March 2012 2011 2010 2009 2008
Return on capital employeda
Adjustedb– % 20.6 18.7 16.0 14.5 17.7
Reported – % 19.5 16.9 13.3 2.3 14.4
Interest coverc
Adjusteda– times 4.5 3.4 2.9 2.5 3.6
Reported – times 6.0 2.8 1.8 0.5 6.2
Net debt to EBITDAb– times 1.5 1.5 1.6 2.0 1.6
Capital expenditure as a percentage of revenueb– % 13.4 12.9 12.1 14.4 16.1
aThe ratio is based on profit before taxation and net finance expense to average capital employed. Capital employed is represented by total assets less current liabilities (excluding corporation tax,
current borrowings, derivative financial liabilities and finance lease creditors) less deferred and current tax assets, retirement benefit asset, cash and cash equivalents, derivative financial assets and
investments.
bBefore specific items.
cThe number of times net finance expense is covered by operating profit.
Overview
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BusinessStrategy
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