Press
information
Pilkington plc: Philip
Webb Reference: PR/056/02
Tel:
01744 692184
Finsbury Limited: Rupert
Younger Date: 29/05/02
Charlotte
Festing
Tel: 020 7251 3801
PILKINGTON GROUP RESULTS
YEAR TO 31 MARCH 2002
Pilkington plc today announces results for the year to 31
March 2002.
Highlights:
·
Fourth
consecutive year of profit growth
·
Profit
before goodwill amortisation, exceptional items and taxation as reported £228 million
(2001 £222 million), equivalent to £234 million at constant exchange rates – an
increase of 5 per cent
·
North
American Step Change structural changes in place – focus now on operational
improvements
·
Major
growth initiative – full product launch in Europe and North America of world’s
first self-cleaning glass, Pilkington ActivÔ
·
Earnings
per share before exceptional items up 7 per cent to 9.5 pence
·
Final
dividend 3.25 pence, maintaining 5 pence in total
Chairman, Sir Nigel Rudd, commented:
“To deliver these results in the most challenging economic
conditions for some years was a tremendous performance. It is a measure of just how robust
Pilkington’s businesses have become. Although the trading environment continues
to be difficult, Pilkington’s increased resilience and competitiveness means
that we are well placed to benefit from any upturn in our markets.”
GROUP RESULTS FOR THE YEAR TO 31
MARCH 2002
Statement by the Chairman, Sir
Nigel Rudd
I am pleased
to report another year of progress by Pilkington. This performance has been achieved in the toughest market
conditions we have seen for many years.
It reflects the enormous performance improvement over the past five
years to transform Pilkington into a highly competitive world-class
company. Since 1997 Pilkington has
almost doubled its profits and its levels of profitability place it at the top
of the global glass industry. There is
still more to go for, but we know precisely what has to be done and we have
already put into place organisational and technical changes to bring this
about.
Pilkington
has been able to demonstrate resilience and maintain profitability in difficult
trading for a number of reasons. The
increasingly competitive position the Group has attained underpins the results,
with the delivery of benefits from the North American Step Change programme now
beginning to contribute. New products
such as Pilkington Activ™ self-cleaning glass, now in full production and on
sale in many of our key markets, confirm Pilkington’s position as the
undisputed industry leader in technical innovation. In addition, several of our most profitable businesses, including
our Automotive Glass Replacement businesses in Europe and North America, and our
processing and merchanting businesses in Europe, are proving to be less
susceptible to cyclical variations than others – a particular strength in an
economic downturn.
On 14 May
2002, we announced some significant changes to our management structure. The first is the appointment of Stuart
Chambers as Group Chief Executive, following the appointment of Paolo Scaroni
as Chief Executive of Enel, Italy's largest electricity group. The second is the departure of Warren
Knowlton and the appointment of Pat Zito to the Pilkington Board.
We are
enormously appreciative of the significant transformation that Paolo Scaroni
has achieved at Pilkington. In five
years he and his senior team have transformed the Group from a loose
confederation of under-performing glass businesses into a world leader in glass
manufacturing with a strong management. We are delighted that he has agreed to
stay on the Board as Deputy Chairman and look forward to his continued
involvement with the Group.
Stuart
Chambers, Pilkington Executive Director and President of Building Products
Worldwide, has worked closely with Paolo during the transformation of the Group
and the Board is delighted that he has agreed to become Group Chief Executive.
Following
reorganisation of our Automotive OE businesses and the resultant elimination of
Pilkington’s internal geographic reporting structure, the position of
President, Automotive Worldwide and President of Pilkington North America has
ceased to exist. As a consequence,
Warren Knowlton will leave the Group on 30 July 2002. I would like to take this
opportunity to thank Warren for all he has done for Pilkington during his five
years with the Group and to wish him every success for the future.
Pat Zito,
who has been appointed President of Pilkington’s global OE business unit
reporting direct to the Group Chief Executive, was responsible for the
integration and restructuring of Pilkington’s European Automotive OE operations
and the creation of a pan-European business and subsequently the merging of the
European and North American OE operations into a single business. I am confident that Pat’s experience will
enable him to make a very positive contribution to the work of the Board.
In January
2002, Iain Lough joined the Board as an executive director and was appointed
Group Finance Director succeeding Andrew Robb.
Iain has been with Pilkington since 1993, most recently as Chief
Financial Officer for Building Products Worldwide. Andrew remains an executive director, with responsibility for the
Group's relationships with its major partners and affiliates worldwide and
supporting the Group Chief Executive in the Group's growth initiatives. He is also responsible for the legal,
secretarial, corporate affairs, information systems and supply management
functions.
Financial results
Turnover from continuing operations, including joint ventures and
associates, was
£2.8 billion, unchanged from the previous year. Operating profit before exceptional items
and goodwill amortisation, including joint ventures and associates, was £293
million (2001 £294 million).
Profit before goodwill amortisation, exceptional items and
taxation was £228 million, an increase of three per cent. After deducting goodwill of £10 million
(2001 £6 million), profit before exceptional items and taxation was £218
million (2001 £216 million).
Exceptional items of £57 million were charged in the year
including £42 million of restructuring costs in Group subsidiaries. The profit before tax after charging
exceptional items was £161 million (2001 £172 million).
Earnings per share before exceptional items increased by seven per
cent to 9.5 pence (2001 - 8.9 pence as restated after the introduction of FRS
19). The Board is recommending a final
dividend of 3.25 pence per share, making a total for the year of 5.0 pence per
share, the same as last year. Subject
to approval by the shareholders at the Annual General Meeting, the final dividend,
with scrip alternative, will be paid on 1 August 2002 to shareholders on the
register at 14 June 2002.
The Group
has adopted the new Accounting Standard on Deferred Taxation – FRS19. Accordingly, the Group’s tax charge for the
year was £61 million, 38 per cent of pre-tax profits, reflecting the mix of
Group profits from different tax jurisdictions. Last
year's
comparatives have been restated following the adoption of this standard.
Certain
balance
sheet values have also been restated and, as a consequence, reserves
as at 31
March 2001 were reduced by £95 million. It is important to note that adoption
of the new standard has no effect on the Group's cash or borrowing position.
Operating
cash flow (profit before exceptional items plus depreciation and amortisation)
was £406 million (2001 £397 million) and the net cash flow before dividends and
management of liquid resources was £5 million outflow (2001 £6 million inflow).
Net borrowings at 31 March 2002 were £704 million (31 March
2001 £656 million). Cash interest cover
was seven times (2001 six times).
During the year the Group obtained stable investment
grade credit ratings and launched a successful debut Euro 350 million seven
year Eurobond in October – the first issue after 11 September. This provided strong confirmation of the
improved credit quality of the Group and was purchased by a wide range of
investors.
Strategy
Cost
consciousness remains our core focus as we continue to work to improve our
position as the most competitive glass company in the world. At the same time, we seek revenue growth
through the development and marketing of new products.
Pilkington
Activ™ self-cleaning glass has captured the imagination of both the glass trade
and consumers on either side of the Atlantic. Its unique dual-action performance
offers tremendous potential for commercial and residential applications.
Pilkington Automotive's solar control windscreens have gained wide market
acceptance. Our new intruder-resistant
glass has been launched on the new BMW 7 series and is expected to be adopted
on higher volume vehicles over the next few years.
Although
adopting a prudent approach to both acquisitions and the creation of new float
capacity in the current climate, Pilkington’s strong competitive stance places
it in a good position to seek out opportunities that may emerge from the
current downturn in the industry. Our
new float plant in north eastern France is now in full production greatly
strengthening our position in the French market. Our decision to postpone the planned joint venture second float
line in Poland was justified by subsequent developments in the European
market. Construction work has begun on
the fourth joint venture float in Brazil at Barra Velha in the south of the country,
which is on course to come on stream in 2003.
Review of operations
Building
Products
Sales,
including joint ventures and associates, were £1,464 million, up two per cent
on the previous year. Operating profits
improved by six per cent to £232 million. Our Building Products business is a
global leader in cost competitiveness with the most efficient group of plants
in the glass industry worldwide.
The
Building Products businesses have performed well throughout the year despite an
atypical decline of two per cent in industry demand for float glass in the
major markets we serve.
Europe
Sales in
the European Building Products business were marginally higher than last year
with operating profits ahead once more.
This business,
the largest in Pilkington, representing two thirds of the Group’s Building
Products sales, achieved better results in spite of mixed market conditions and
a significant decline in demand in the second half year. Our ongoing cost consciousness has meant
that despite tough market conditions, the manufacturing performance of our
European float glass plants continues to improve.
One of
the two float lines at Gladbeck, in Germany, was shut down for cold repair in
January 2002. The plant start-up after
the repair was originally planned for May 2002 but has been postponed until
market conditions improve. The float
tank at Porto Marghera (Venice) ceased production in April 2002 in readiness
for its cold repair. It is planned that
the second Gladbeck float will be repaired towards the end of this financial
year.
A new
integrated float and processing facility in France, involving a joint venture
partner, was completed ahead of schedule, in time to support Building Products
over the heavy European float repair programme in 2002. Its construction is a key component in the
Group’s European growth strategy.
A new
on-line coating facility was completed at Weiherhammer in Bavaria, to supply
the European launch of Pilkington ActivÔ
self-cleaning glass in March.
Production
of Pilkington PyrostopÔ,
the Group’s market-leading fire-protection range made at Gelsenkirchen,
Germany, was further expanded to meet continued strong growth in demand for
this high value-added product.
Growth in
other added-value products continued with demand for low emissivity Pilkington
K GlassÔ being
boosted in the United Kingdom, as a result of the revised building regulations
introduced by the Government in April 2002. These regulations, designed to
reduce heat loss, and thus energy consumption, in buildings, effectively
require
the use of low emissivity glass for windows for both new build and
refurbishment, bringing the United Kingdom in line with practice followed in
Germany and Scandinavia for some years.
In the
downstream Processing and Merchanting businesses, profits increased for the
third year running, despite a reduction in European glass consumption. Steady improvements in productivity, allied
to reductions in costs, were also achieved.
During
the year, acquisitions were completed in France and the United Kingdom and
selected branches within the European network were expanded.
All
Processing and Merchanting customers in Europe now have the opportunity to
place orders electronically. More than
ten per cent of customer orders are already placed using e-Commerce and this is
expected to grow substantially.
North America
Results
of the North American Building Products business, which accounts for
approximately 15 per cent of Building Products sales, improved during the year
due to further cost reduction initiatives and the absence of major float glass
repairs, following the repair programme of recent years.
The
highlight of the year in North America was the successful launch of Pilkington
ActivÔ self-cleaning
glass, which attracted widespread media and customer interest. Pilkington is
the first glass company in North America to bring such a product to market and
a large number of US fabricators and window manufacturers have now been
certified to market and sell it.
In
Mexico, Vitro Plan SA de CV (VVP), in which Pilkington has a 35 per cent stake,
increased its sales overall, largely due to
growth outside Mexico, following the acquisition of Cristal Glass in
Spain. Consolidation of Cristal Glass sales
offset the impact of the slowdown in the US and Mexican economies. Profits were restrained by the strength of
the Mexican peso since a significant amount of sales are invoiced in foreign
currencies.
South
American Building Products, with operations predominantly in Brazil, accounts
for about seven per cent of Group
Building Products sales. The region
continued to provide good results during the year, though sales volumes and
prices were affected by devaluations and the economic instability in Argentina.
All five
float lines in the region performed well during the year and high yields were
achieved. Cold repair of the Cebrace
joint venture float line in Caçapava, after twelve years in operation, started
in February and was completed in May.
Construction
of an additional float line in southern Brazil commenced in February. This facility will be built and operated by
Cebrace, the joint venture between Pilkington and Saint Gobain. The plant, which will have a sales capacity
of approximately 200,000 tonnes per year, is scheduled to start operations in
2003.
The
Australian housing market was very slow at the start of the year but
strengthened considerably as the year progressed. The results of the Australian Building Products business, which
represent eight per cent of Building Products sales, improved as a consequence.
The
Group’s associated company in China, Shanghai Yaohua Pilkington Glass Co Ltd
(SYP), continued to perform well. During the year SYP acquired control of
Guangdong Float Glass, which owns a float glass line in southern China.
Automotive Products
Sales during the year, including joint ventures and
associates, were £1,275 million, a reduction of six per cent on the previous
year. Operating profits reduced by 16
per cent to £79 million. Following the
structural changes completed within our North American Automotive Products
business, Pilkington has now combined its Original Equipment (OE) operations
into a single worldwide business unit. This enables the Group to serve its
global customers better and facilitates the implementation of best practice
across Automotive Products, paving the way for a significant improvement in
operational performance.
Europe
Although results
were affected by the economic downturn in continental Europe, the European
Automotive business, which accounts for nearly half of the Group’s automotive
glass sales, continued to drive through improvements in product quality and
manufacturing productivity.
Sales in
the OE business experienced a slowdown compared to the previous year, due to a
decline in demand in some markets, and a reduction in volume of some large
programmes as they approached the end of their model life. In addition, start-up of replacement models
was slower than anticipated. Sales are
expected to recover as the new model transitions are completed.
New
product development was again a key area and during the year an advanced
intruder-resistant, side glazing product was launched. With vehicle manufacturers increasingly
emphasising security features, this type of glazing should feature
significantly in future.
The
European Automotive Glass Replacement (AGR) business demonstrated further
profitable growth, assisted by reductions in both manufacturing and
distribution costs. The aftermarket was
strong, with some market gains, but the specialist, original equipment market
of buses, coaches and trucks was weak.
Complexity of these products continues to grow, helping to offset the
downturn in volumes.
North America
In the
North American Automotive business, which accounts for over 40 per cent of
automotive revenues, sales declined during the year following an overall fall
in light vehicle production and completion of a large short-term contract for
Ford, which had been anticipated for some time.
During
the year, structural changes to the North American Automotive business were
completed to schedule. This resulted in
the long planned closure of two automotive fabrication plants; at Sherman,
Texas, and Lathrop, California. Since
then, the emphasis has shifted to improving operational performance in the
remaining facilities and better levels of quality, productivity and higher
levels of efficiencies have already been achieved.
The AGR
business in North America has been successfully turned round from its
loss-making position of three years ago and is now making good returns.
The AGR
business model has been completely re-engineered, including pricing policy,
substantially improving the route delivery system, implementing best practices
and customising each service centre to the needs of its local market. In addition, its successful e-business
programme, through which 40 per cent of its sales are implemented, was expanded
to include a wide offering of glass products and accessory parts to customers,
with a seamless on-line ordering system, from product look-up through to
delivery.
In Mexico, the automotive division of Vitro Plan SA de
CV (VVP) experienced a reduction in demand in the OE market, which accounts for
16 per cent of its revenues, but increased its AGR sales. Profits were also adversely affected by a
decline in prices.
The South
American Automotive glass business was again able to produce good results,
despite a sharp reduction in demand in Argentina.
A new
plant to supply bus windscreens for local customers was opened in Brazil. Business continued to grow with a new
contract to supply windscreens and side glazings to Volkswagen.
Profitability
in Australia continued to rise, due to higher productivity and yields and a
further reduction in overhead costs. Demand remained stable with exports
exceeding 30 per cent of total sales.
In China,
plant operating and financial performance continued to improve. Strong sales growth continued, with 30 per
cent of output being exported to the USA and Europe.
Pilkington Aerospace
The
events of September 2001 had a significant adverse impact on the aviation
industry and its suppliers.
Nevertheless, Pilkington Aerospace was able to react quickly to the dip
in the civil aviation sector by securing long-term commitments in the business
jet market with Learjet, Cessna and Embraer.
Sales for
military aircraft increased as the US Defense Department augmented its spares
inventory. During the year Pilkington
Aerospace was selected by Lockheed Martin to supply the integrated transparency
system for the new Joint Strike Fighter, the largest military aircraft
programme in history. It has also been
chosen to supply the Saab Gripen JAS 39 aircraft.
Prospects
Pilkington
is operating in tough trading conditions for a second consecutive year and we
expect challenging markets for most of the coming year. Float prices in Europe are down but not
expected to deteriorate further. In
Automotive, production remains subdued, but prices are stable. Overall, we expect to see progress this year
in the United States and in Automotive, with some deterioration in Building
Products.
Pilkington
will continue to drive down its cost base, benchmarking across the Group to
achieve higher levels of productivity and efficiency. Demand for our products is increasingly driven by requirements
for sophisticated and added-value glass, and we will continue to invest in
their development. A competitive
manufacturing base and a strong portfolio of innovative products should ensure
that Pilkington remains resilient even in challenging times, consolidating its position
as the world's leading global glass company.
|
PILKINGTON
PLC: GROUP PROFIT AND LOSS ACCOUNT |
|||||||
|
|
2002 |
2001 |
|||||
|
|
Note |
Operations
|
Exceptionals (Note 6) |
Total
|
Operatios Restated |
Exceptionals Restated |
Total Restated |
|
|
|
£m |
£m |
£m |
£m |
£m |
£m |
Turnover
– continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group
turnover |
2 |
2,471 |
- |
2,471 |
2,507 |
- |
2,507 |
|
Share
of joint ventures’ and |
4 |
334 |
- |
334 |
313 |
- |
313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover including joint
ventures and associates |
|
2,805 |
- |
2,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit – continuing
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group
– before goodwill amortisation |
|
241 |
(42) |
199 |
241 |
(39) |
202 |
|
Group
– goodwill amortisation |
|
(10) |
- |
(10) |
(6) |
- |
(6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group operating profit – total |
2 |
231 |
(42) |
189 |
235 |
(39) |
196 |
|
Share
of joint ventures’ and associates’ |
4 |
52 |
(3) |
49 |
53 |
- |
53 |
|
|
|
|
|
|
|
|
|
|
Operating profit including
joint ventures and associates |
|
283 |
(45) |
238 |
288 |
(39) |
249 |
|
Non-operating
exceptional items: |
6 |
|
|
|
|
|
|
|
Loss
on disposal/termination of continuing |
|
|
(9) |
(9) |
|
|
|
|
Loss
on disposal of fixed assets and |
|
|
(3) |
(3) |
|
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before investment
income |
|
283 |
(57) |
226 |
288 |
(44) |
244 |
|
Investment
income |
|
1 |
- |
1 |
1 |
- |
1 |
|
Net
interest payable and similar charges |
7 |
(66) |
- |
(66) |
(73) |
- |
(73) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on ordinary activities
before taxation |
|
218 |
(57) |
161 |
216 |
(44) |
172 |
|
Taxation |
8 |
(75) |
14 |
(61) |
(84) |
16 |
(68) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation |
|
143 |
(43) |
100 |
132 |
(28) |
104 |
|
Minority
interests (including non-equity) |
|
(26) |
- |
(26) |
(27) |
- |
(27) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) attributable to shareholders
|
|
117 |
(43) |
74 |
105 |
(28) |
77 |
|
|
|
|
|
|
|
|
|
|
Dividends |
|
(62) |
- |
(62) |
(62) |
- |
(62) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained
profit/(loss) of the Group
|
|
55 |
(43) |
12 |
43 |
(28) |
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss)
per share
|
9 |
9.5p |
(3.5p) |
6.0p |
8.9p |
(2.4p) |
6.5p |
|
Fully diluted earnings/(loss)
per share |
9 |
9.4p |
(3.5p) |
5.9p |
8.7p |
(2.3p) |
6.4p |
Dividends
per share
|
13 |
|
|
5.0p |
|
|
5.0p |
SUMMARY GROUP BALANCE SHEET
|
|
|||
|
|
31st March £m |
|
31st
March Restated |
|
|
|||
|
|
|
|
|
|
Assets
employed |
|
|
|
Fixed
assets
|
|
|
|
|
Intangible
fixed assets |
163 |
|
174 |
|
Tangible
fixed assets |
1,498 |
|
1,585 |
|
Joint
ventures, associates and trade investments |
239 |
|
218 |
|
|
|
|
|
|
|
|
|
|
|
|
1,900 |
|
1,977 |
|
|
|
|
|
|
Current assets |
|
|
|
|
Stocks |
412 |
|
394 |
|
Debtors |
457 |
|
485 |
|
Investments
- marketable |
13 |
|
38 |
|
Cash
at bank and in hand |
44 |
|
49 |
|
|
|
|
|
|
|
|
|
|
|
|
926 |
|
966 |
|
|
|
|
|
|
Creditors
- amounts falling due within one year |
(652) |
|
(707) |
|
|
|
|
|
|
|
|
|
|
|
Net current assets |
274 |
|
259 |
|
|
|
|
|
|
|
|
|
|
|
Total assets less current
liabilities |
2,174 |
|
2,236 |
|
|
|
|
|
|
|
|
|
|
|
FINANCED BY |
|
|
|
Creditors
- amounts falling due after more than one year
|
626 |
|
618 |
|
Provisions for liabilities and
charges |
520 |
|
557 |
|
|
|
|
|
|
|
|
|
|
|
|
1,146 |
|
1,175 |
|
Deferred income |
20 |
|
19 |
|
|
|
|
|
|
|
|
|
|
|
|
1,166 |
|
1,194 |
|
Capital and reserves |
|
|
|
|
Called
up share capital |
627 |
|
617 |
|
Reserves |
80 |
|
105 |
|
|
|
|
|
|
|
|
|
|
|
Total equity shareholders'
funds |
707 |
|
722 |
|
Minority interests (including
non-equity) |
301 |
|
320 |
|
|
|
|
|
|
|
|
|
|
|
|
2,174 |
|
2,236 |
|
|
|
|
|
STATEMENT OF TOTAL RECOGNISED GAINS AND
LOSSES
|
|
|||
|
|
Year to
|
|
Year
to Restated |
|
|
|||
|
|
|
|
|
|
|
74 |
|
77 |
|
Other
recognised losses: |
|
|
|
|
Exchange
rate movements on foreign currency net investments |
(47) |
|
(2) |
|
|
|
|
|
|
|
|
|
|
|
Total
recognised gains/(losses) |
27 |
|
75 |
|
|
|
|
|
|
Prior
year adjustment |
(95) |
|
|
|
|
|
|
|
|
Total
losses recognised since last annual report |
(68) |
|
|
|
|
|
|
|
RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
|
|
|||
|
|
Year to
|
|
Year
to Restated |
|
|
|||
|
|
|
|
|
|
Profit
attributable to shareholders of Pilkington plc |
74 |
|
77 |
|
Dividends |
(62) |
|
(62) |
|
Exchange
rate movements on foreign currency net investments |
(47) |
|
(2) |
|
Shares
issued |
10 |
|
67 |
|
Premium
on shares issued |
10 |
|
60 |
|
|
|
|
|
|
|
|
|
|
|
Net
(decrease)/increase in shareholders' funds for the year |
(15) |
|
140 |
|
Shareholders'
funds at beginning of the year (originally £817 million before prior year
restatement of £95 million) |
722 |
|
582 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
funds at end of the year |
707 |
|
722 |
|
|
|
|
|
SUMMARY GROUP CASH FLOW STATEMENT
|
|
|||
|
|
Year to |
|
Year
to |
|
|
|||
|
|
|
|
|
|
Net cash inflow from operating
activities before exceptional items |
316 |
|
381 |
|
|
|
|
|
|
Exceptional
items - restructuring and disposal of operations |
(54) |
|
(60) |
|
|
|
|
|
|
|
|
|
|
Net
cash inflow from operating activities
|
262 |
|
321 |
|
|
|
|
|
|
Dividends
received from joint ventures and associates |
9 |
|
26 |
|
|
|
|
|
|
Net
cash outflow from returns on investments and |
(73) |
|
|
|
|
|
|
|
|
Taxation
paid |
(44) |
|
(38) |
|
|
|
|
|
|
Net
cash outflow from capital expenditure |
(154) |
|
(182) |
|
|
|
|
|
|
Net
cash outflow from acquisitions and disposals |
(5) |
|
(40) |
|
|
|
|
|
|
Net cash (outflow)/inflow
before dividends, |
(5) |
|
|
|
|
|
|
|
|
Equity
dividends paid by parent company |
(45) |
|
(47) |
|
|
|
|
|
|
Management
of liquid resources |
21 |
|
(22) |
|
|
|
|
|
|
Net
cash inflow from financing |
45 |
|
44 |
|
|
|
|
|
|
|
|
|
|
Increase/(decrease)
in cash
|
16 |
|
(19) |
|
|
|
|
|
RECONCILIATION OF NET CASH FLOW TO
MOVEMENT IN NET DEBT
|
|
|||
|
|
Year to |
|
Year
to |
|
|
|||
|
Net
debt at beginning of the year |
(656) |
|
(596) |
|
Increase/(decrease)
in cash in the year |
16 |
|
(19) |
|
Cash
(inflow)/outflow from management of liquid resources |
(21) |
|
22 |
|
Net
increase in loans |
(42) |
|
(66) |
|
Net
(increase)/decrease in obligations under finance leases |
(1) |
|
22 |
|
Exchange
rate adjustments |
- |
|
(19) |
|
|
|
|
|
|
|
|
|
|
|
Net
debt at end of the year (note 12) |
(704) |
|
(656) |
|
|
|
||