Adjusted EBITDA

Reconciliation of income before tax to Adjusted EBITDA for the twelve months ended:

31 December
2012
30 September
2012
30 June 2012 31 March 2012 31 December
2011
в млн долл.
Income before tax405497442539544
Depreciation and amortisation326322327335336
Finance costs, net275265263274271
Impairment of assets/(Reversal of impairment of assets)8(72)(72)(68)(68)
Loss/(gain) on changes in fair value of derivative financial instrument70(27)(53)(45)
Foreign exchange (gain)/loss, net (23) (21) 29 3 1
Loss/(gain) on disposal of property, plant and equipment17138(16)(17)
Movement in allowances and provisions2428211928
Other non-cash items00000
Adjusted EBITDA1,0401,0339911,0341,050
31 December
2012
30 September
2012
30 June 2012 31 March 2012 31 December
2011
в млн долл.
Income before tax405497442539544
Depreciation and amortisation326322327335336
Finance costs, net275265263274271
Impairment of assets/(Reversal of impairment of assets)8(72)(72)(68)(68)
Loss/(gain) on changes in fair value of derivative financial instrument70(27)(53)(45)
Foreign exchange (gain)/loss, net (23) (21) 29 3 1
Loss/(gain) on disposal of property, plant and equipment17138(16)(17)
Movement in allowances and provisions2428211928
Other non-cash items00000
Adjusted EBITDA1,0401,0339911,0341,050

Adjusted EBITDA is not a measure of our operating performance under IFRS and should not be considered as an alternative to gross profit, net profit or any other performance measures derived in accordance with IFRS or as an alternative to cash flow from operating activities or as a measure of our liquidity. In particular, Adjusted EBITDA should not be considered to be a measure of discretionary cash available to invest in our growth. Adjusted EBITDA has limitations as analytical tool, and potential investors should not consider it in isolation, or as a substitute for analysis of our operating results as reported under IFRS. Some of these limitations include:

  • Adjusted EBITDA does not reflect the impact of financing or finance costs on our operating performance, which can be significant and could further increase if we were to incur more debt;
  • Adjusted EBITDA does not reflect the impact of income taxes on our operating performance;
  • Adjusted EBITDA does not reflect the impact of depreciation and amortisation on our operating performance. The assets that are being depreciated and/or amortised will have to be replaced in the future and such depreciation and amortisation expense may approximate the cost to replace these assets in the future. By excluding this expense from Adjusted EBITDA, it does not reflect our future cash requirements for these replacements; and
  • Adjusted EBITDA does not reflect the impact of other non-cash items on our operating performance, such as foreign exchange (gain)/loss, impairment/(reversal of impairment) of non-current

We compensate for these limitations by relying primarily on our IFRS operating results and using Adjusted EBITDA only supplementally.

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