EX-7.2 3 d381842dex72.htm EX-7.2 EX-7.2

Exhibit 7.2

Alternative performance measures

EBITDA, Earnings before interest, tax, depreciation and amortization.

EBITDA provides an analysis of the operating results excluding depreciation and amortization and impairments, as they are non-cash variables which can vary substantially from company to company depending on accounting policies and the accounting value of the assets. EBITDA is an approximation to pre-tax operating cash flow and reflects cash generation before working capital variation. EBITDA is widely used by investors when evaluating businesses (multiples valuation), as well as by rating agencies and creditors to evaluate the level of debt, comparing EBITDA with net debt.

EBITDA is calculated in the following manner:

EBITDA = Operating results + Depreciation and amortization + Impairment charges/(reversals).

 

     For the year ended December 31,  
Millions of U.S. dollars    2016      2015  

Operating (loss) income

     (59      166  

Depreciation and amortization

     662        659  

Depreciation and amortization from discontinued operations

     (5      (5

Impairment

     —          400  
  

 

 

    

 

 

 

EBITDA

     598        1,219  

Net cash/(debt) position

This is the net balance of cash and cash equivalents, other current investments and fixed income investments held to maturity less total borrowings. It provides a summary of the financial solvency and liquidity of the company. Net cash / (debt) is widely used by investors and rating agencies and creditors to assess the company’s leverage, financial strength, flexibility and risks.

Net cash/(debt) position is calculated in the following manner:

Net cash/(debt) = Cash and cash equivalents + Other investments (Current) + Fixed income investments held to maturity – Borrowings (Current and Non-current).

 

     At December 31,  
Millions of U.S. dollars    2016      2015  

Cash and cash equivalents

     400        287  

Other current investments

     1,633        2,141  

Non-current fixed income investments held to maturity

     248        393  

Borrowings -current and non current-

     (840      (972
  

 

 

    

 

 

 

Net cash position

     1,441        1,849  


Free Cash Flow

Free cash flow is a measure of financial performance, calculated as operating cash flow less capital expenditures. FCF represents the cash that a company is able to generate after spending the money required to maintain or expand its asset base.

Free cash flow is calculated in the following manner:

Free cash flow = Net cash (used in) provided by operating activities – Capital expenditures.

 

     For the year ended December 31,  
Millions of U.S. dollars    2016      2015  

Net cash provided by operating activities

     864        2,215  

Capital expenditures

     (787      (1,132
  

 

 

    

 

 

 

Free cash flow

     77        1,083