Tesco 2015 Annual Report Download - page 157

Financial year end 2014/15 28 February 2015
Annual General Meeting/1Q interim management statement 26 June 2015
Half-year end 2015/16 29 August 2015
Interim results 7 October 2015
3Q and Christmas interim management statement 14 January 2016
Financial year end 2015/16 27 February 2016
Please note that these dates are provisional and subject to change, with the exception of the financial year end.
Capex % of sales
Capital expenditure as defined below, divided by Group sales including
VAT and excluding IFRIC 13.
Capital expenditure
The additions to property, plant and equipment, investment property and
intangible assets (excluding assets acquired under business combinations).
Constant tax rate
Using the prior year’s effective tax rate.
EBITDAR
Operating profit before depreciation, amortisation, rent and movements
in impairments of property, plant and equipment, investment property and
intangible assets.
Fixed charge cover
The ratio of EBITDAR (excluding Tesco Bank EBITDAR) divided by financing
costs (net interest including capitalised interest and excluding IAS 32 and 39
impacts and pension finance costs) plus operating lease expenses.
Free cash flow
Free cash flow is net cash generated from/(used in) operating activities less
capital expenditure on property, plant and equipment, investment property
and intangible assets.
Gearing
Net debt divided by total equity.
Growth in sales
The YoY% movement in sales for continuing operations excluding VAT
excluding PFS and excluding IFRIC 13 for 52 weeks at constant fx rates.
Growth in trading profit
The YoY% movement in trading profit for continuing operations for 52 weeks
at constant fx rates.
Loyal customers
Loyal customers are defined based on their frequency of spend and average
weekly spend in our stores and online shopping over eight weeks.
Net debt
Net debt excludes the net debt of Tesco Bank but includes that of the
discontinued operations. Net debt comprises bank and other borrowings,
finance lease payables, net derivative financial instruments, joint venture
loans and other receivables and net interest receivables/payables, offset by
cash and cash equivalents and short-term investments.
Net indebtedness
The ratio of total indebtedness divided by EBITDAR (excluding Tesco Bank
EBITDAR) from continuing operations.
Retail cash flow
Cash generated from/(used in) operations for retail activities.
Return on capital employed
Return divided by the average of opening and closing capital employed.
Return
Profit (excluding the impact of one-off items) before interest after tax
(applied at effective rate of tax).
Capital employed
Net assets (excluding the impact of one-off items) plus net debt plus
dividend creditor less net assets held for resale and discontinued operations.
Total indebtedness
Net debt plus the IAS19 deficit in the pension schemes (net of associated
deferred tax) plus the present value of future minimum rentals payable under
non-cancellable operating leases.
Total shareholder return
The notional annualised return from a share, measured as the percentage
change in the share price, plus the dividends paid with the gross dividends
reinvested in Tesco shares. This is measured over both a one and five-year
period. For example, five-year total shareholder return for 2013/14 is the
annualised growth in the share price from 2008/09 and dividends paid and
reinvested in Tesco shares, as a percentage of the 2008/09 share price.
Trading profit
Trading profit is an adjusted measure of operating profit and measures the
performance of each segment before profits/losses arising on property-related
items, the impact on leases of annual uplifts in rent and rent-free periods,
intangible asset amortisation charges and costs arising from acquisitions, and
goodwill impairment and restructuring and other one-off costs. The IAS 19
pension charge is replaced with the ‘normal’ cash contributions for pensions.
An adjustment is also made for the fair value of customer loyalty awards.
Underlying diluted earnings per share
Underlying profit less tax at the effective tax rate and non-controlling interest
divided by the diluted weighted average number of shares in issue during
the year.
Underlying net interest
Underlying net interest, as included in underlying profit, excludes net pension
finance costs and IAS 39 ‘Finance Instruments’ – fair value measurements.
Underlying profit before tax
Underlying profit before tax excludes the impact of non-cash elements of IAS
17, 19, 32 and 39 (principally the impact of annual uplifts in rents and rent-free
periods, pension costs, and the marking to market of financial instruments);
the amortisation charge on intangible assets arising on acquisition and
acquisition costs, and the non-cash impact of IFRIC 13. It also excludes profits/
losses on property-related items and restructuring and other one-off costs.
Glossary
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