Full Year Results

3 March 2016

Solid performance in face of challenging market conditions; good progress with business priorities

Group Performance

Group summary

· Full year profit before tax of £252m in line with expectations set out at the half year

o impacted by low oil price, Bangladesh contract extension and slower payments in two of our markets

· Group revenue of £1.6bn, slightly down on the prior year

o sector and geographic diversity largely offsets impact of low commodity prices and lower emerging market growth

· Strong balance sheet from continued high cashflow generation and capital discipline whilst continuing to invest in fleet / technology

o net debt to EBITDA[5] maintained at 0.9 times

· Full year dividend maintained reflecting our continued confidence in the strength and prospects for the Group

· Good progress on our three business priorities of the customer, technology and efficiency

o initiatives underway covering account management, sales expertise and market & sector specific strategies

o more fuel efficient gas product will be in the fleet in H2 2016

o on target to deliver £80m cash savings by 2017 from reorganisation and procurement

· New, focused organisational structure and management team in place and working well

Business unit performance

Business unit highlights

Rental Solutions

· Sector diversity offsets 25% decline in oil & gas revenues

o 2015 revenue in line with 2014

o Eight out of twelve sectors grew, with particular strength in petrochemical & refining and events

· Strong growth in temperature control; successful acquisition of ICS, a specialist heating business

· Continue to generate good margins and returns, despite a challenging year

Power Solutions

Industrial

· Good growth in key markets and improving margins and returns

· Strong performances in the Middle East, Russia and Africa and successful delivery of the European Games

· Brazilian market remains challenging but we have taken further action to reduce our cost base

Utility

· Revenue decrease driven by Bangladesh and off-hiring of Panama contract

· Order intake of 640MW (2014: 757MW, including 170MW peak shaving) reflecting lower growth in emerging markets

· Year end order book over 40,000MW months, c.14 months' revenue at current run rate (2014: 8 months)

· Good progress with key extensions in Argentina, Ivory Coast, Japan and Bangladesh

· Payment challenges; in particular Yemen and Venezuela leading to $11m debtor provision increase

2016 Outlook

Our Power Solutions Utility business has started the year with a strong order book; a healthy prospect pipeline; 140MW of new orders; and the signing of a two year extension of our 148MW of diesel contracts in Japan. We expect the level of contracts off-hiring in the year to go back up to a more normal level, of around 30%. Due to the timing of contract start and end dates there will be a reduction in first half profits at a Group level. We continue to monitor the geopolitical situation in Yemen, Libya and Venezuela.

In our Power Solutions Industrial business we are seeing softer trading conditions in Singapore and some of our markets that are more exposed to the mining sectors. However year to date power volumes are up on the prior year, driven by continued good performances in the Middle East, Russia and Africa.

The Rental Solutions business unit, in particular our North American business, has had a slow start to 2016 following a lower run rate exiting 2015 than we had expected and we are cautious on our outlook for this part of our business.

At a Group level we anticipate investing around £250 million on fleet capex, focussing on investment in our more fuel efficient gas and diesel engines; as ever we will maintain our capital discipline and flex this spend according to market conditions. Overall, we expect profit before tax and exceptional items to be slightly lower than the prior year on a constant currency basis[6], in line with current consensus.

Chris Weston, Chief Executive Officer, commented:

"We have ended 2015 with a strong balance sheet, with net debt slightly down; as we continue to generate good levels of operating cashflow; and maintain discipline in our investment in new fleet. We have also maintained the full year dividend in line with last year, reflecting our continued confidence in the strength and prospects of the business which provides a much needed service to our customers. As we enter 2016 I am encouraged by the prospect pipeline we are seeing and pleased by the progress we are making with our business priorities."

Future Reporting

Enquiries

Analyst Presentation

A presentation will be held for analysts and investors today at 9am (GMT) at the London Stock Exchange. A live web-cast and a copy of the slides will be available on our website and investor relations app at www.aggreko.com/investors.

For a video of Chris Weston and Carole Cran discussing the 2015 results, please visit www.aggreko.com/investors.

OPERATING & FINANCIAL REVIEW

The trading results for the 12 months to 31 December 2015 are set out below. All numbers in this section are pre-exceptional items.

Group Trading Performance

Underlying Group revenue was down 3% on the prior year. Rental Solutions revenue was in line with last year with growth in the majority of our key sectors, particularly petrochemical & refining and events, offsetting the impact lower commodity prices had on our oil & gas and mining revenues. Power Solutions revenue was down 5%. Within this, our Industrial business grew strongly with revenues 10% higher driven by growth in our Middle East, Russian and African businesses. In contrast, trading conditions in Brazil remain difficult given the macro environment and we have taken steps to further reduce the cost base as a result. Power Solutions Utility revenue was down 11% driven by the renegotiation of our 325MW gas contract in Bangladesh and the off-hiring of our 104MW contract in Panama.

Overall, the Group trading margin was 17% (2014: 19%). Rental Solutions margin was down slightly on last year driven by North American pricing and volumes in the oil & gas sector. Power Solutions margin was down three percentage points overall. Within this, Industrial was up four percentage points, reflecting the incremental benefit we get from major events. Utility margin was down five percentage points due to the contract renegotiation in Bangladesh and a higher debtor provision driven by slower payments, particularly in Venezuela and Yemen. The lower margin, as well as a slight increase in net operating assets, impacted the Group return on capital employed, which was 16% (2014: 19%).

The movement in exchange rates in the period had the translational impact of increasing revenue by £22 million and trading profit by £6 million. This was driven by the strength of the US dollar against Sterling partially offset by the weakness of the majority of our other major currencies against Sterling.

Earnings and Dividends

The Group delivered profit before tax of £252 million (2014: £289 million). Diluted earnings per share (DEPS) was 71.68 pence, 13% lower than the prior year.

Reflecting our continued confidence in the strength and prospects of the business, the Group is proposing to maintain the final dividend at 17.74 pence per share. Subject to shareholder approval this will result in a full year dividend of 27.12 pence (2014: 27.12 pence) per ordinary share; this equates to dividend cover of 2.6 times (2014: 3.0 times).

Cashflow and Balance Sheet

During the year, we generated an operating cash inflow of £461 million (2014: £498 million). We continued to manage our capital expenditure tightly and to adjust the amount we spend up or down in response to market conditions, whilst investing sustainably for the future. Fleet capital expenditure was £237 million (2014: £226 million), of which £63 million was invested in our gas fleet and £29 million to refurbish our diesel fleet to the more fuel efficient, higher output G3+ engine, which now represents 13% of our Utility business diesel fleet.

Net debt was £489 million at 31 December 2015; £5 million lower than the prior year. This resulted in net debt to EBITDA of 0.9 times, maintaining it at the 2014 level.

Outlook

Our Power Solutions Utility business has started the year with a strong order book; a healthy prospect pipeline; 140MW of new orders; and the signing of a two year extension of our 148MW of diesel contracts in Japan. We expect the level of contracts off-hiring in the year to go back up to a more normal level, of around 30%. Due to the timing of contract start and end dates there will be a reduction in first half profits at a Group level. We continue to monitor the geopolitical situation in Yemen, Libya and Venezuela.

In our Power Solutions Industrial business we are seeing softer trading conditions in Singapore and some of our markets that are more exposed to the mining sectors. However year to date power volumes are up on the prior year, driven by continued good performances in the Middle East, Russia and Africa.

The Rental Solutions business unit, in particular our North American business, has had a slow start to 2016 following a lower run rate exiting 2015 than we had expected and we are cautious on our outlook for this part of our business.

At a Group level we anticipate investing around £250 million on fleet capex, focussing on investment in our more fuel efficient gas and diesel engines; as ever we will maintain our capital discipline and flex this spend according to market conditions. Overall, we expect profit before tax and exceptional items to be slightly lower than the prior year on a constant currency basis[7], in line with current consensus.

BUSINESS UNIT PERFORMANCE REVIEW

In June 2015 we announced a new organisation structure comprising the Rental Solutions and Power Solutions business units. This new structure took effect from 1 August 2015. The performance of these business units for the year ended 31 December 2015 is described below.

Rental Solutions

Despite the considerable impact of a lower oil price our Rental Solutions business delivered a solid performance with underlying revenue in line with the prior year and trading profit declining by 9%. Trading margin decreased by one percentage point to 16%.

Rental revenue decreased by 3% and services revenue increased by 6%. Within rental revenue power decreased by 7% and oil free air was down 8%. Offsetting this, we saw good growth in temperature control with revenues up 11%, reflecting our renewed focus on this adjacent product line.

Overall revenues in our North American business were in line with the prior year despite diesel and gas pricing and volume pressure in the oil & gas sector, where revenue was down 26% year on year. Offsetting this was growth in many of the other key sectors we serve, particularly in events, and in petrochemical & refining, now our largest sector in North America, where revenue was up 25%, and the lower oil price acted as a stimulus.

Our Australia Pacific business continued to face difficult market conditions driven by persistently lower commodity prices and the impact this has had on our mining sector revenues. However, the rate of decline has slowed, with revenue down 5% in the year compared to a decrease of 18% in the previous year. Our business in New Zealand grew, driven by emergency response work from the cyclones which hit the country and the ICC World Cup.

Across Europe all countries have seen growth year on year. Our Continental European business saw revenues increasing 11% aided by good growth in Romania, Germany, Italy and the Netherlands. The Northern European business had a solid year with revenue increasing 4%. Our business in Northern Europe also felt the impact of a lower oil price, however the reduction in oil & gas revenue was offset by increases in the manufacturing, shipping and construction sectors.

Rental Solutions trading margin was 16% with the slight reduction being driven by the pricing pressure on our North American oil & gas business, to which we have responded by reducing costs and capital expenditure.

Power Solutions

Overall our Power Solutions business saw revenues decline by 5% and trading profit decline by 17% on an underlying basis. Our Industrial business had a good year with underlying revenue up 10% and trading profit increasing 44%. Trading margin increased to 15% (2014: 11%). Our Utility business, however, had a challenging year with underlying revenue decreasing 11% and trading profit decreasing 28%. Trading margin was 5 percentage points lower at 22% (2014: 27%).

Underlying revenue in our Industrial business unit increased 10% with rental revenue up 12% and services revenue up 1%. On a geographic basis we saw strong growth in Africa where mining remains strong, and particularly in South Africa where the business is growing rapidly on the back of the worsening power outages and regular load shedding. In Russia, despite the lower oil price, we continue to see good growth, particularly with our gas product as we benefit from a structural shift towards outsourcing. In the Middle East we saw good growth in Saudi Arabia, Qatar, Oman and Turkey. However, revenue decreased in Kuwait and the UAE, whilst Iraq is a continued challenge from a security perspective. In Brazil, the economic environment remains difficult and elsewhere in Latin America the mining sector slowdown has impacted our businesses in Chile and Peru, although we did have a strong year in Argentina. In our Asia business we had a good performance in South Korea, however we faced more challenging conditions in Singapore and India.

We were also pleased to have successfully supplied power for the first European Games in Baku. In total, we provided 35MW of temporary power across the Games' fifteen venues and the International Broadcast Centre. The prior year comparatives include revenue from the World Cup in Brazil; excluding this from last year and revenue from the European Games in 2015, the year on year increase in revenue, in our Industrial business unit, was 7%.

Our Utility business saw underlying revenue decrease by 11% and trading profit by 28%. Trading margin decreased to 22% (2014: 27%). The decrease in revenue was driven by the renegotiation of our 325MW of gas contracts in Bangladesh where permanent power was brought on line; the off-hiring of our contract in Panama; and lower volumes on hire in Indonesia, Military and Yemen. The main reasons for the margin decline were the Bangladesh extension and a higher debtor provision driven by slower payment by a handful of customers, particularly in Venezuela and Yemen, partially offset by improved payments in Argentina.

Order intake for the year was 640MW (2014: 757MW); last year's comparative includes 170MW of lower rate, summer peak shaving work in Saudi Arabia and Oman, which did not repeat in 2015. New contracts in 2015 included 150MW in Argentina, 95MW in Myanmar and 40MW in each of the Bahamas and Guam. With regards to contract extensions, we are pleased to have extended our contracts in Argentina, Ivory Coast, Japan and Bangladesh. At the year end, our order book was over 40,000MW months, the equivalent of 14 months' revenue at the current run-rate (2014: 8 months) and the highest level in recent times.

FINANCIAL REVIEW

A summarised Income Statement for 2015 as well as related ratios are set out below.  

Currency Translation

The movement in exchange rates in the period had the translational impact of increasing revenue by £22 million and trading profit by £6 million. This was driven by the strength of the US dollar against Sterling, partially offset by the weakness of the majority of our other major currencies against Sterling compared to average rates in 2014 as shown in the table below. Currency translation also gave rise to a £68 million decrease in the value of net assets as a result of year on year movements in the exchange rates. Set out in the table below are the principal exchange rates which affected the Group's profits and net assets.

Reconciliation of Underlying Growth to Reported Growth 

The table below reconciles the reported and underlying revenue and trading profit growth rates:

Exceptional Items

The definition of exceptional items is contained within Note 1 of the 2015 Annual Report & Accounts. An exceptional charge of £26 million before tax was recorded in the year to 31 December 2015 in respect of the Group's reorganisation and business priorities review. These costs include professional fees, severance costs, relocation costs and travel & expenses directly related to the reorganisation. The cash cost in the year was £16 million.

Interest

The net interest charge of £23 million was £2 million higher than last year reflecting higher average net debt year on year, and arrangement fees included in the 2015 interest number for facilities refinanced during the year. Interest cover, measured against rolling 12-month EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation), remained strong at 24 times (2014: 27 times) relative to the financial covenant attached to our borrowing facilities that EBITDA should be no less than 4 times interest.

Taxation

Total Taxes

In 2015, Aggreko's worldwide operations resulted in direct and indirect taxes of £194 million (2014: £178 million) being paid to tax authorities. This amount represents all corporate taxes paid on operations, payroll taxes paid and collected, import duties, sales taxes and other local taxes.

Tax Charge

The Group's pre-exceptional effective corporation tax rate for the year was 27% (2014: 26%) based on a tax charge of £69 million (2014: £74 million) on a pre-exceptional profit before taxation of £252 million (2014: £289 million).

Further information, including a detailed tax reconciliation of the current year tax charge, is shown at Note 10 in the Annual Report and Accounts.

Capital Structure & Dividends

The objective of Aggreko's strategy is to deliver long-term value to its shareholders whilst maintaining a balance sheet structure that safeguards the Group's financial position through economic cycles. From an ordinary dividend perspective our objective is to provide a progressive, through cycle dividend, recognising the inherent lack of visibility and potential volatility of our business.

Subject to shareholder approval the proposed final dividend of 17.74 pence will result in a full year dividend of 27.12 pence (2014: 27.12 pence) per ordinary share, giving dividend cover (Basic EPS divided by full year declared dividend) of 2.6 times (2014: 3.0 times).

Cashflow

The net cash inflow from operations during the year totalled £461 million (2014: £498 million). This funded capital expenditure of £254 million; in line with the prior year. Of the £254 million, £237 million was spent on fleet of which £63 million was invested in our gas fleet and £29 million to refurbish our diesel fleet to the more fuel efficient, higher output G3+ engine.

Net debt of £489 million at 31 December 2015 was £5 million lower than the prior year. Net debt to EBITDA was maintained at 0.9 times, in line with our strategy of keeping financial leverage around one times.

There was a £80 million working capital outflow in the year (2014: £73 million outflow) mainly driven by an increase in accounts receivable balances, particularly in our Power Solutions Utility business, where debtor days increased to 123 days (2014: 110 days) and an increase in inventory at our Manufacturing facility due to the timing of next generation gas engine purchases. The Group monitors the risk profile and debtor position of all contracts regularly, particularly those in the Power Solutions Utility business, and deploys a variety of techniques to mitigate the risk of delayed or non-payment; these include securing advance payments, bonds and guarantees. The increase in debtor days reflects slower payments by our customers in Yemen and Venezuela. We have operated in both countries for a number of years and although neither customer contests that the debt is due the current security situation in the Yemen and the impact of a lower oil price in Venezuela has meant that payments have been slower. In response to this the Power Solutions Utility debtor provision at 31 December 2015 of £48 million was £10 million higher than at 31 December 2014. Our teams in both markets are working closely with the customers to resolve the issue.

Net Operating Assets

The net operating assets of the Group (including goodwill) at 31 December 2015 totalled £1,707 million, £17 million higher than 2014. The main components of net operating assets are:-

A key measure of Aggreko's performance is the return (expressed as operating profit) generated from average net operating assets (ROCE). The average net operating assets in 2015 were £1,682 million, up 3% on 2014. In 2015, the ROCE decreased to 16% compared with 19% in 2014. This decrease was mainly driven by the reduction in trading margin in our Power Solutions Utility business.

Property, Plant and Equipment

Rental fleet accounts for £1,049 million, or around 92%, of the net book value of property, plant and equipment used in our business. The great majority of equipment in the rental fleet is depreciated on a straight-line basis to a residual value of zero over 8 years, with some classes of non-power fleet depreciated over 10 years. The annual fleet depreciation charge of £259 million (2014: £243 million) relates to the estimated service lives allocated to each class of fleet asset. Asset lives are reviewed regularly and changed if necessary to reflect current thinking on their remaining lives in light of technological change, prospective economic utilisation and the physical condition of the assets.

Acquisition of ICS Group, Inc. (ICS)

On 2 September 2015, the Group acquired substantially all of the trade and assets associated with, and used in connection with, the equipment rental business of ICS Group, Inc. (ICS), a specialist heating business headquartered out of Western Canada. The total consideration was £18 million and in the twelve months to July 2015, ICS had revenues of £9 million.

Shareholders' Equity

Shareholders' equity increased by £37 million to £1,115 million, represented by the net assets of the Group of £1,604 million before net debt of £489 million. The movements in shareholders' equity are analysed in the table below:

The £183 million of post-tax profit (pre-exceptional items) in the year represents a return of 16% on Shareholders' equity (2014: 20%) which compares to an estimated Group weighted average cost of capital of 8%.

Pensions

Pension arrangements for our employees vary depending on best practice and regulation in each country. The Group operates a defined benefit scheme for UK employees, which was closed to new employees joining the Group after 1 April 2002. Most of the other schemes in operation around the world are varieties of defined contribution schemes.

Under IAS 19: 'Employee Benefits', Aggreko has recognised a pre-tax pension deficit of £2 million at 31 December 2015 (2014: £7 million) which is determined using actuarial assumptions. The decrease in the pension deficit is primarily driven by an increase in corporate bond yields resulting in a higher discount rate which has decreased the value placed on the liabilities of the scheme.

The main assumptions used in the IAS 19 valuation for the previous two years are shown in Note 30 of the Annual Report & Accounts. The sensitivities regarding these assumptions are shown in the table below.

Treasury

The Group's operations expose it to a variety of financial risks that include liquidity, the effects of changes in foreign currency exchange rates, interest rates, and credit risk. The Group has a centralised treasury operation whose primary role is to ensure that adequate liquidity is available to meet the Group's funding requirements as they arise, and that financial risk arising from the Group's underlying operations is effectively identified and managed.

The treasury operations are conducted in accordance with policies and procedures approved by the Board and are reviewed annually. Financial instruments are only executed for hedging purposes, and transactions that are speculative in nature are expressly forbidden. Monthly reports are provided to senior management and treasury operations are subject to periodic internal and external review.

Liquidity and funding

The Group maintains sufficient facilities to meet its funding requirements over the medium term. At 31 December 2015, these facilities totalled £891 million in the form of committed bank facilities arranged on a bilateral basis with a number of international banks and private placement lenders. The financial covenants attached to these facilities are that EBITDA should be no less than 4 times interest and net debt should be no more than 3 times EBITDA; at 31 December 2015, these stood at 24 times and 0.9 times respectively. The Group does not consider that these covenants are restrictive to its operations. The maturity profile of the borrowings is detailed in Note 18 in the Annual Report & Accounts.

Net debt amounted to £489 million at 31 December 2015 (2014: £494 million) and, at that date, un-drawn committed facilities were £385 million.

The Group's policy is to manage the exposure to interest rates by ensuring an appropriate balance of fixed and floating rates. At 31 December 2015, £321 million of the net debt of £489 million was at fixed rates of interest resulting in a fixed to floating rate net debt ratio of 66:34 (2014: 62:38).

The Group is subject to currency exposure on the translation into Sterling of its net investments in overseas subsidiaries. In order to reduce the currency risk arising, the Group uses direct borrowings in the same currency as those investments. Group borrowings are predominantly drawn down in the currencies used by the Group, namely US Dollar, Canadian Dollar, Mexican Peso, Brazilian Reals and Russian Ruble.

The Group manages its currency flows to minimise foreign exchange risk arising on transactions denominated in foreign currencies and uses forward contracts and forward currency options, where appropriate, in order to hedge net currency flows.

Cash deposits and other financial instruments give rise to credit risk on amounts due from counterparties. The Group manages this risk by limiting the aggregate amounts and their duration depending on external credit ratings of the relevant counterparty. In the case of financial assets exposed to credit risk, the carrying amount in the balance sheet, net of any applicable provision for loss, represents the amount exposed to credit risk.

Insurance

The Group operates a policy of buying cover against the material risks which the business faces, where it is possible to purchase such cover on reasonable terms. Where this is not possible, or where the risks would not have a material impact on the Group as a whole, we self-insure.

Principal Risks and Uncertainties

In the day to day operations of the Group, we face risks and uncertainties. Our job is to mitigate and manage these risks and the Board has developed a risk management framework which is described in the Annual Report and Accounts, alongside the principal risks and uncertainties which we believe could potentially impact the Group. These are summarised below:

· Macroeconomic activity;

· Market conditions;

· Change management relating to our new business priorities;

· Talent management and succession planning;

· Competition;

· Technology;

· Cyber security;

· Service delivery;

· Security;

· Health and safety;

· Failure to conduct business dealings with integrity and honesty;

· Exchange controls;

· Exchange rate fluctuations;

· Taxation;

· Failure to collect payments or to recover assets.

During 2015, we saw an increase in risk in relation to a number of these factors.

1 Unless otherwise stated all figures are pre-exceptional costs of £26 million. These exceptional costs relate to the Group reorganisation, details of which are explained in the Financial Review.

2 "Underlying" is defined as: adjusted for currency movements and pass-through fuel revenue from Power Solutions, where we provide fuel to our contracts in Mozambique on a pass-through basis. Pass-through fuel revenue in 2015 was £60m (2014: £48m) and the trading loss was £1m (2014: loss of £3m).

3 Trading profit represents operating profit before gain on sale of property, plant and equipment.

4 ROCE is calculated by taking the operating profit for the year and expressing it as a percentage of the average net operating assets at 1 January, 30 June and 31 December.

5 EBITDA is defined as Earnings Before Interest, Tax, Depreciation and Amortisation

6 The constant currency impact is a headwind of £16 million applying the end of January 2016 spot rates, including the step devaluation of the Argentinian peso. In relation to 2016 the Power Solutions Utility contracts in Argentina have contractual protection that offsets the impact of the devaluation.

7 The constant currency impact is a headwind of £16 million applying the end of January 2016 spot rates, including the step devaluation of the Argentinian peso. In relation to 2016 the Power Solutions Utility contracts in Argentina have contractual protection that offsets the impact of the devaluation.

8 "Underlying" is defined as: adjusted for currency movements and pass-through fuel revenue from Power Solutions, where we provide fuel to our contracts in Mozambique on a pass-through basis.

9 Underlying excludes currency

10 "Underlying" is defined as: adjusted for currency movements and pass-through fuel revenue, where we provide fuel to our contracts in Mozambique on a pass-through basis.

11 "Underlying" is defined as: adjusted for currency movements and pass-through fuel revenue from Power Solutions, where we provide fuel to our contracts in Mozambique on a pass-through basis.

12 Constant currency takes account of the impact of translational exchange movements in respect of our businesses which operate in currency other than sterling.

13 Reflects the final dividend for 2014 of 17.74 pence per share (2014: 17.19 pence) and the interim dividend for 2015 of 9.38 pence per share (2014: 9.38 pence) that were paid during the year.

GROUP INCOME STATEMENT

For the year ended 31 December 2015

GROUP STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 December 2015

GROUP BALANCE SHEET 

(COMPANY NUMBER: SC177553)

As at 31 December 2015

The financial statements on pages 17 to 32 were approved by the Board of Directors on 3 March 2016 and were signed on its behalf by:

GROUP CASH FLOW STATEMENT

For the year ended 31 December 2015

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

For the year ended 31 December 2015

GROUP STATEMENT OF CHANGES IN EQUITY

For the year ended 31 December 2015

As at 31 December 2015

GROUP STATEMENT OF CHANGES IN EQUITY

As at 31 December 2014

NOTES TO THE GROUP CASH FLOW STATEMENT

For the year ended 31 December 2015

(i) Cash generated from operating activities

In the cash flow statement, proceeds from sale of PPE comprise:

Profit on sale of PPE is shown within other income in the Income Statement.

NOTES TO THE ACCOUNTS

For the year ended 31 December 2015

Note 1

Segmental reporting

(a) Revenue by segment