Tesco 2014 Annual Report Download - page 146

Financial year end 2013/14 22 February 2014
Final ex-dividend date 30 April 2014
Final dividend record date 2 May 2014
Q1 Interim Management Statement 4 June 2014
Annual General Meeting 27 June 2014
Final dividend payment date 4 July 2014
Half-year end 2014/15 23 August 2014
Interim Results 1 October 2014
Q3 Interim Management Statement 3 December 2014
Financial year end 2014/15 28 February 2015
Please note that these dates are provisional and subject to change.
The 2014/15 financial year will comprise of 53 weeks.
Adjusted net debt
Net debt plus the deficit in the pension schemes plus the present value of
future minimum rentals payable under non-cancellable operating leases
(discounted at 7%).
Capex % of sales
Capital expenditure as defined below, divided by Group sales including
VAT and excluding IFRIC 13.
Capital expenditure
The additions to property, plant and equipment, investment property and
intangible assets (excluding assets acquired under business combinations).
Colleagues being trained for their next role
The proportion of colleagues who are receiving training for their next role.
Colleague retention
The proportion of colleagues with over one year’s service who have worked
for Tesco in the UK throughout the year.
Constant tax rate
Using the prior year’s effective tax rate.
Donation of pre-tax profits to charities and good causes
Our contribution to charities and good causes through direct donations,
cause-related marketing, gifts-in-kind, staff time and management costs.
EBITDAR
Operating profit before depreciation, amortisation, rent and movements
in impairments of property, plant and equipment, investment property and
intangible assets.
Fixed charge cover
The ratio of EBITDAR (excluding Tesco Bank EBITDAR) divided by financing
costs (net interest including capitalised interest and excluding IAS 32 and 39
impacts and pension finance costs) plus operating lease expenses.
Gearing
Net debt divided by total equity.
Net debt
Net debt excludes the net debt of Tesco Bank but includes that of the
discontinued operations. Net debt comprises bank and other borrowings,
finance lease payables, net derivative financial instruments, joint venture
loans and other receivables and net interest receivables/payables, offset by
cash and cash equivalents and short-term investments.
Net indebtedness
The ratio of adjusted net debt divided by EBITDAR (excluding Tesco Bank
EBITDAR) from continuing operations.
Partner viewpoint
The partner viewpoint survey is our annual survey of suppliers. In this report
we have stated the percentage of positive scores from respondents when we
asked whether Tesco treats them with respect.
Reduction in CO2e emissions from existing stores and distribution centres
The year-on-year reduction in greenhouse gas emissions per square foot from
our stores and distribution centres across the Group against a 2006/07 baseline.
Return on capital employed
Return divided by the average of opening and closing capital employed.
Return: Profit (excluding the impact of one-off property and customer
redress charges) before interest after tax (applied at the effective rate of tax).
Capital employed: Net assets (excluding the impact of current year one-off
property and customer redress charges) plus net debt plus dividend creditor
less net assets held for resale and discontinued operations.
Return on capital employed (proforma)
In the year, a proforma return on capital employed has been presented as
defined below:
Return divided by the average of opening and closing capital employed.
Return: Profit (excluding the impact of one-off property and customer
redress charges) before interest after tax (applied at the effective rate of tax)
including Chinese operations (excluding fair value re-measurement
adjustments), excluding US operations.
Capital employed: Net assets (excluding the impact of current year one-off
property and customer redress charges) plus net debt plus dividend creditor
less net assets held for resale, including Chinese operations (excluding fair
value re-measurement adjustments), excluding US operations.
Total shareholder return
The notional annualised return from a share, measured as the percentage
change in the share price, plus the dividends paid with the gross dividends
reinvested in Tesco shares. This is measured over both a one and five-year
period. For example, five-year total shareholder return for 2013/14 is the
annualised growth in the share price from 2008/09 and dividends paid and
reinvested in Tesco shares, as a percentage of the 2008/09 share price.
Trading profit
Trading profit is an adjusted measure of operating profit and measures the
performance of each segment before profits/losses arising on property-related
items, the impact on leases of annual uplifts in rent and rent-free periods,
intangible asset amortisation charges and costs arising from acquisitions, and
goodwill impairment and restructuring and other one-off costs. The IAS 19
pension charge is replaced with the ‘normal’ cash contributions for pensions.
An adjustment is also made for the fair value of customer loyalty awards.
Underlying diluted earnings per share
Underlying profit less tax at the effective tax rate and minority interest divided
by the diluted weighted average number of shares in issue during the year.
Underlying profit before tax
Underlying profit before tax excludes the impact of non-cash elements of IAS
17, 19, 32 and 39 (principally the impact of annual uplifts in rents and rent-free
periods, pension costs, and the marking to market of financial instruments);
the amortisation charge on intangible assets arising on acquisition and
acquisition costs, and the non-cash impact of IFRIC 13. It also excludes profits/
losses on property-related items and restructuring and other one-off costs.
Other information
Governance Financial statementsStrategic report
Tesco PLC Annual Report and Financial Statements 2014 143
Financial calendar
Glossary