BT 2016 Annual Report Download - page 96

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Overview The Strategic Report Governance Financial statements Additional information
101
Summarised cash ow statement
Year ended 31 March 2016 2015 2014
Before specific items £m £m £m
EBITDA 6,580 6,271 6,116
Capital expenditurea(2,459) (2,411) (2,346)
Net interest (541) (573) (608)
Taxationb(459) (415) (424)
Working capital movements (105)(220) (380)
Other non-cash and non-current
liabilities movements 82 178 92
Normalised free cash ow 3,098 2,830 2,450
Cash tax benefit of pension deficit
payments 203 106 77
Specific items (232) (154) (356)
Reported free cash ow 3,069 2,782 2,171
Pension deficit payments (880) (876) (325)
Dividends (1,075) (924) (778)
Disposals and acquisitions (3,379) 10 (22)
Share buyback programme (315) (320) (302)
Proceeds from issue of own shares 90 1,201 75
(Increase) reduction in net debt from
cash ows (2,490)1,873 819
Net debt at 1 April (5,119) (7,028) (7,797)
(Increase) reduction in net debt from
cash ows (2,490) 1,873 819
Non-cash movements (2,236) 36 (50)
Net debt at 31 March (9,845) (5,119) (7,028)
a Net of government grants.
b Excluding cash tax benefit of pension deficit payments.
Reported free cash ow, which includes specific item outows of
£232m (2014/15: £154m) and a £203m (2014/15: £106m)
tax benefit from pension deficit payments, was £3,069m
(2014/15: £2,782m).
We made pension deficit payments of £880m (2014/15:
£876m) and paid dividends to our shareholders of £1,075m
(2014/15: £924m).
Our acquisition of EE resulted in a net cash outow of £3,371m
which comprised the purchase consideration of £3,464m oset by
cash acquired of £93m.
We spent £315m (2014/15: £320m) on our share buyback
programme to help counteract the dilutive eect of our all‑
employee share option plans maturing. Exercises of share options
generated proceeds of £90m (2014/15: £201m). Last year
we also raised £1.0bn from an equity placing to support our
acquisition of EE. We expect to buy back around £200m of
shares in 2016/17 which is below the buyback we completed in
2015/16, reecting the lower number of shares that are expected
to be required for our share option plans.
Non‑cash movements within net debt primarily reect £2,107m
of net debt acquired with EE.
You can see a reconciliation to normalised free cash ow from
the net cash inow from operating activities, the most directly
comparable IFRS measure, on page 242.