EX-7 13 a16-10573_1ex7.htm EX-7

Exhibit 7

 

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

 

 

 

2016

 

2015

 

2014

 

2013

 

2012

 

 

 

£m

 

£m

 

£m

 

£m

 

£m

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing costs per consolidated income statement(2)

 

2,124

 

1,736

 

1,554

 

1,596

 

1,768

 

Financing costs — discontinued operations

 

—

 

—

 

—

 

56

 

23

 

One third of rental expense

 

772

 

768

 

718

 

601

 

585

 

Interest capitalized

 

179

 

142

 

3

 

8

 

25

 

Fixed charges

 

3,075

 

2,646

 

2,275

 

2,261

 

2,401

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss)/profit before taxation from continuing operations

 

(449

)

1,095

 

(5,270

)

(3,483

)

4,144

 

Share of results of equity accounted associates and joint ventures

 

(44

)

63

 

(278

)

(575

)

(1,129

)

Fixed charges

 

3,075

 

2,646

 

2,275

 

2,261

 

2,401

 

Dividends received from associates and joint ventures

 

—

 

583

 

4,897

 

5,539

 

4,916

 

Interest capitalized

 

(179

)

(142

)

(3

)

(8

)

(25

)

Earnings

 

2,403

 

4,245

 

1,621

 

3,734

 

10,307

 

Ratio of earnings to fixed charges

 

—

 

1.6

 

—

 

1.7

 

4.3

 

Deficiency between fixed charges and earnings

 

672

 

—

 

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) amortisation of premiums, discounts and capitalised expenses related to indebtedness, and (4) an estimate of the interest within rental expense. These include the financing costs of subsidiaries.  Fixed charges include net foreign exchange losses arising from net foreign exchange movements on certain intercompany loans of £433 million for the year ended 31 March 2016 (2015: £526 million gain, 2014: £21 million gain, 2013: £91 million loss, 2012: £nil), interest expense on settlement of tax issues of £15 million for the year ended 31 March 2016 (2015: £4m credit, 2014: £15 million credit, 2013: £91 million credit, 2012: £23 million expense) and equity put rights and similar arrangements of £nil for the year ended 31 March 2016 (2015: £11 million, 2014: £143 million, 2013: £136 million, 2012: £81 million).