BT 2015 Annual Report Download - page 87

85
Overview
The Strategic Report
Purpose and strategy Delivering our strategy 0ur lines of business Group performance
Governance Financial statements Additional information

At
1 April
01
Term debt
issuance
aturities
ther
cash
ow
air value
ove-
ments
Foreign
echane
Transfer to
within one
year ther
At
1 arch
2015
ebt due within one eara1 111 9  1 1 0 1900
Debt due after one year 91 1   9 1 11 
pact of cross-currenc swapsb       
eoval of accrued interest and fair value adustentsc9      9 
Gross debt 9,496 (339) (39) (54) 10 9,074
ess
ash euivalents 9  1  0   
urrent assets investents 1  1    1 
eoval of accrued interestc112
1HWGHEW 7,028 (339) (1,534) (46) 10 5,119
a Including accrued interest and bank overdrafts.
b Retranslation of debt balances at swap rates where hedged by cross-currency swaps.
c5HPRYDORIDFFUXHGLQWHUHVWDSSOLHGWRUHƮHFWWKHHƪHFWLYHLQWHUHVWUDWHPHWKRGDQGUHPRYDORIIDLUYDOXHDGMXVWPHQWV
he table below shows the e coponents of our net debt and of the reduction this ear of 1909.
ver the last two ears we have reduced net debt b .bn as shown in the raph below.
eported free cash ow which includes specific ites and a 10
011  ta benefit fro pension deficit paents
was 011 11.
e spent 0 011 0 on our share bubac prorae
to help counteract the dilutive eect of our all-eploee share option
plans aturin. ercises of share options enerated proceeds of
01 011 .
ou can see a reconciliation fro the net cash inow fro operatin
activities the ost directl coparable  easure to noralised
free cash ow on pae 0.
1HWGHEW
e have reduced net debt to 119 down 1909 reectin
1.0bn raised fro the euit placin supportin our planned
acuisition of  as well as the stron cash eneration of the business.
e have achieved this while ain investents for the future
of our business includin in research and developent and sports
content supportin our pension fund and funding our share
bubac prorae. ndwe have paid proressive dividends to our
shareholders.
e continue to taret a aa1 credit ratin over the ediu ter.
e reularl review the liuidit of the roup and our fundin strate
taes account of ediu-ter reuireents includin the pension
deficit and share bubac. his ear we have also taen into account
thefundin reuireents for the planned acuisition of .
ross debt translated at swap rates at 1 arch 01 was 90.
his coprised ter debt of 1 finance leases of  and
other loans of .
e issued 1 of ter debt in the capital arets. he eective
terlin interest rate on this five ear bond was .1. his issuance
was partl to refinance aturin debt and also to ae sure we have
liuidit to refinance ter debt of 11 aturin in earl 011.
n une and ul 01 our 0 and 00 bonds atured resultin
in a cash outow of 111.
e have increased the level of our investents held in liuidit funds
and ter deposits b 1 reectin the cash eneration of the
business the issuance of ter debt and the 1.0bn raised fro the
euit placeent.
he ipact of forein echane on net debt includes the ipact of
translation on finance leases short-ter borrowins investents
and cash balances. It also includes the benefit of translating our debt
balances to terlin at swap rates.
he adustent to net debt to reove the ipact of fair value hede
accountin increased b . he adustent for the use of the
eective interest ethod decreased b 9. hese were principall
due to hiher terlin interest rates.
Movements in net debt
£m
At 1 April 2013 Normalised free cash ow ash ta benefit of pension deficit
pecific ites
pecific ites Share buyback Disposal and acquisitions At 31 March 2014 Non-cash movement Non-cash movement Proceeds from issue of own shares
Proceeds from issue of own shares
Dividends ension deficit payments Disposal and acquisitions Share buyback Dividends Normalised free cash ow ash ta benefit of pension deficit ension deficit payments
At 31 March 2015
2,500
3,500
4,500
5,500
6,500
7,500
8,500
7,797
2,450
75
77
325
778
302
50
356
22
7,028
1,201
36
5,119
2,830
106
10
154
876
924
320