EX-7 6 a15-12993_1ex7.htm EX-7

Exhibit 7

 

UNAUDITED COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

 

2014

 

 

2013

 

 

2012

 

 

2011

 

 

 

£m

 

 

£m

 

 

£m

 

 

£m

 

 

£m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing costs per consolidated income statement(2)

1,736

 

 

1,554

 

 

1,596

 

 

1,768

 

 

359

 

 

Financing costs – discontinued operations

-

 

 

-

 

 

56

 

 

23

 

 

70

 

 

One third of rental expense

768

 

 

718

 

 

601

 

 

585

 

 

629

 

 

Interest capitalized

142

 

 

3

 

 

8

 

 

25

 

 

138

 

 

Fixed charges

2,646

 

 

2,275

 

 

2,261

 

 

2,401

 

 

1,196

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit/(loss) before taxation from continuing operations

1,095

 

 

(5,270

)

 

(3,483

)

 

4,144

 

 

5,057

 

 

Share of profit in associates

63

 

 

(278

)

 

(575

)

 

(1,129

)

 

(548

)

 

Fixed charges

2,646

 

 

2,275

 

 

2,261

 

 

2,401

 

 

1,196

 

 

Dividends received from associates

583

 

 

4,897

 

 

5,539

 

 

4,916

 

 

1,424

 

 

Preference dividend requirements of a consolidated subsidiary

-

 

 

-

 

 

-

 

 

-

 

 

(89

)

 

Interest capitalized

(142

)

 

(3

)

 

(8

)

 

(25

)

 

(138

)

 

Earnings

4,245

 

 

1,621

 

 

3,734

 

 

10,307

 

 

6,902

 

 

Ratio of earnings to fixed charges

1.6

 

 

-

 

 

1.7

 

 

4.3

 

 

5.8

 

 

Deficiency between fixed charges and earnings

-

 

 

654

 

 

-

 

 

-

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes:

1.

All of the financial information presented in this exhibit is unaudited.

2.

Fixed charges include (1) interest expensed (2) interest capitalized (3) amortised premiums, discounts and capitalised expenses related to indebtedness, (4) an estimate of the interest within rental expense, and (5) preference security dividend requirements of a consolidated subsidiary. These include the financing costs of subsidiaries. Fixed charges include foreign exchange losses arising from net foreign exchange gains on certain intercompany loans of £526 million for the year ended 31 March 2015 (2014: £21 million gain, 2013: £91 million loss, 2012: £nil, 2011: £nil) and interest credit on settlement of tax issues of £4 million for the year ended 31 March 2015 (2014: £15 million credit, 2013: £91 million credit, 2012: £23 million expense, 2011: £826 million credit, 2010).