Peachtree 2012 Annual Report Download - page 26

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Key performance indicators (“KPIs”)
Measuring our progress…
Financial drivers
We monitor our nancial performance against a number of different benchmarks. These
are set in agreement with the Board and used to evaluate progress against our strategy.
Our nancial performance during 2012, including KPIs, is discussed in more depth in the
Financial review on pages 28 to 30.
Financial performance
We delivered a solid performance in the
context of a macroeconomic environment
which remained difcult and uncertain in
most of our markets. We have protected
margins at the same time as investing for
growth. The decline in EPS is due to an
increase in tax rate from 23% to 29% as a
result of one-off favourable tax settlements
in the prior year.
Organic# revenue growth Underlying EPS growth
4%
2%
Flat
-5%
3%
20122011201020092008
2%*
16%
14%
Flat
-2%
3%
EBITA† margin Cash generation from operations
27%
27%
25%
22%
23%
20122011201020092008
27%
111%
106%
117%
112%
114%
Net debt leverage Interest cover
0.1
0.4
0.5
1.2
1.6
20122011201020092008
0.4:1
27.5
32.5
32.5
21.3
10.1
Financial strength and
capital discipline
We continued to make progress towards
our net debt level of a minimum of
1x EBITDA through a combination of
our ongoing share buyback programme,
an increase in our total dividend and
a number of completed acquisitions.
# Organic gures exclude the contributions of current and prior year acquisitions, disposals and non-core products.
* Underlying gures neutralise the impact of foreign exchange movements and exclude amortisation of acquired intangible assets, acquisition-related items and imputed interest.
† EBITA is dened as earnings before interest, tax, amortisation of acquired intangible assets and acquisition-related items and is after neutralising the impact of foreign exchange movements.
^ Cash generation from operations represents cash ows from operating activities divided by EBITA. EBITA for cash generation purposes is after acquisition-related items.
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