UNBOUNCE - EXAMPLE PAGE-REPORT-ENTERPRISE DOCUMENT-KINGSPAN - Flipbook - Page 180
ALTERNATIVE PERFORMANCE MEASURES
Free cash flow
Free cash flow is the cash generated from operations after net capital expenditure, interest paid, income taxes paid and lease payments
and reflects the amount of internally generated capital available for re-investment in the business or for distribution to shareholders.
Financial Statements Reference
2021
€m
2020
€m
Net cash flow from operating activities
Consolidated Statement of Cash Flows
329.2
638.5
Additions to property, plant and equipment
Consolidated Statement of Cash Flows
(168.8)
(131.8)
Proceeds from disposals of property,
plant and equipment
Interest received
Lease payments
Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows
5.2
0.1
(38.6)
5.7
1.0
(33.7)
127.1
479.7
Free cash flow
Return on capital employed (ROCE)
ROCE is the operating profit before interest and tax expressed as a percentage of the net assets employed. The net assets employed
reflect the net assets, excluding net debt, at the end of each reporting period.
Financial Statements Reference
Net Assets
Net Debt
Consolidated Statement of Financial Position
Note 17
Operating profit before interest and tax
Consolidated Income Statement
Return on capital employed
2021
€m
2020
€m
2,959.3
756.1
3,715.4
2,397.6
236.2
2,633.8
725.3
484.7
19.5%
18.4%
Banking Covenants
The Net Debt:EBITDA and the EBITDA:Net Interest ratios disclosed in this report are calculated in accordance with the terms and
conditions of the covenants as set out in the Group's external borrowing arrangements. Therefore, EBITDA and Net Interest are adjusted
to exclude the impact of IFRS 16 - Leases for these calculations.
Net debt
Net debt represents the net total of current and non-current borrowings, current and non-current derivative financial instruments,
(excluding foreign currency derivatives which are used for transactional hedging), and cash and cash equivalents as presented in the
Consolidated Statement of Financial Position. Lease liabilities recognised due to the implementation of IFRS 16 and deferred contingent
consideration have also been excluded from the calculation of net debt. Consistent with the 2020 APMs, this definition is in accordance
with the terms and conditions of the covenants as set out in the Group’s external borrowing arrangements.
Financial Statements Reference
Net Debt
Note 17
2021
€m
2020
€m
756.1
236.2
Net Debt:EBITDA
Net debt as a ratio to 12 month EBITDA. For the purpose of this calculation, EBITDA is solely adjusted for the impact of IFRS 16 - Leases.
Financial Statements Reference
EBITDA
Lease liability payments
EBITDA (adjusted for the impact of IFRS 16)
176 - 177
Consolidated Statement of Cash Flows
2021
€m
2020
€m
893.2
(38.6)
630.2
(33.7)
854.6
596.5
