REG - National Grid PLC - Results for the year ended 31 March 2015 <Origin Href="QuoteRef">NG.L</Origin> - Part 3
15/07/2015 18:44
- Part 3: For the preceding part double click ID:nRSU8507Nb
the Netherlands and England,
a 26% interest in the Millennium natural gas pipeline in New York State and a 20% interest in the Iroquois gas pipeline
between Long Island and the Canadian border.
National Grid's share of post-tax results of joint ventures for the year was £46m an increase of £18m compared with
2013/14. This reflected a significant increase in the contribution from the BritNed Interconnector reflecting increased
power price differentials between the Netherlands and the UK.
TECHNICAL GUIDANCE
National Grid provides technical guidance to aid consistency across a range of modelling assumptions of a technical, rather
than trading or core valuation, nature. The Company may provide appropriate updates to this information on a regular basis
as part of its normal reporting. The outlook and technical guidance contained in this statement should be reviewed,
together with the forward looking statements set out in this release, in the context of the cautionary statement.
UK regulated operations: Performance measures
Totex outperformance against regulatory target levels in UK Gas Distribution and UK Electricity Transmission is expected to
continue into 2015/16.
Other incentive performance is expected to reduce somewhat, reflecting the strong performance in 2014/15, particularly in
the Gas Transmission permit scheme which is not available going forward.
Contributions to Returns on Equity resulting from performance in previous price controls are expected to reduce
significantly in Gas Transmission, following the agreed profile determined by the RIIO regulatory outcome.
Investment in UK regulated operations is expected to continue at broadly similar levels to 2014/15. Combining investment
with the benefit of totex performance on the RAV, National Grid expects similar levels of real RAV growth in 2015/16 to the
levels in 2014/15.
UK regulated operations: Earnings Items
In November, Ofgem ran the financial models that calculate substantial elements of the revenue allowances for National
Grid's UK regulated businesses. The outcome of these model runs (known as the 'MOD adjustments') were in line with National
Grid's expectations.
The 'MOD adjustments' for UK Electricity Transmission in 2015/16 will reduce net revenues by approximately £130m compared
to Ofgem's original base case. This reflects, in part, sharing of an element of the significant efficiency savings
delivered in the first year of the UK RIIO price controls, with National Grid's performance providing immediate benefits to
customers. The reduction will be partially offset by other allowed revenue growth. As a result, excluding the impact of
timing and annual incentive performance (and the benefit of one off legal settlements in 2014/15), net revenues in UK
Electricity Transmission in 2015/16 are expected to reduce by approximately £50m compared to 2014/15.
On the same basis, the MOD adjustments in UK Gas Transmission should contribute to net revenues for 2015/16 that are in
line with those in 2014/15. UK Gas Distribution net revenues are expected to increase by approximately £50m including
increased revenue allowances relating to tax costs.
In addition, headline year on year net revenue movements are expected to be impacted by under and over recoveries of
revenue during 2014/15 and the recovery of some of the timing balances created in 2013/14. These balances relate to revenue
over and under recoveries, adjustments relating to incentive performance and some cost true ups resulting from regulatory
performance in 2013/14.
UK depreciation is expected to increase, reflecting the impact of continued high levels of capital investment.
US regulated operations: Performance measures
Overall US Return on Equity is expected to reflect a broadly flat level of operating profit compared to 2014 and also to be
affected by the 5% rate base growth delivered last year. As a result US Return on Equity is expected to be around 8% in
2015.
US regulated operations: Earnings measures
US regulated operating profit in 2013/14 was £1,134m, excluding the impact of timing. Increased revenue in 2015/16 from
existing rate plans and tracker mechanisms is expected to be broadly offset by increased costs and depreciation.
Other activities
Costs associated with US financial system and process implementation impacted the results for other activities in 2014/15
by £56m. These costs are not expected to recur in 2015/16.
Early indications for French Interconnector performance for 2015/16 are that the market remains similar to the favourable
conditions experienced in 2014/15.
Interest and Taxation
Net finance costs for 2015/16 are expected to be broadly consistent with those in 2014/15.
For the full year 2015/16, the effective tax rate is expected to be to be around 24%.
Investment, Growth and Net Debt
Overall Group capital expenditure for 2015/16 is expected to be of a similar order of magnitude as 2014/15.
Cash flow before capex and shareholder returns is expected to reduce slightly reflecting lower working capital inflows and
increased US pension contributions.
As a result, net debt is expected to increase by around £1.5bn during 2015/16, excluding the effect of any exchange rate
impacts or net scrip dividend dilution.
APPENDIX: BASIS OF PRESENTATION, DEFINITIONS AND METRIC CALCULATIONS
BASIS OF PRESENTATION
Adjusted and Statutory Results
Unless otherwise stated, all financial commentaries in this release are given on an adjusted basis at actual exchange
rates. Prior year earnings per share figures are restated to reflect the impact of additional shares issued as scrip
dividends (refer to note 6 on page 55).
'Adjusted' results are a key financial performance measure used by National Grid, being the results for continuing
operations before exceptional items and remeasurements. Remeasurements comprise gains or losses recorded in the income
statement arising from changes in the fair value of commodity contracts and of derivative financial instruments to the
extent that hedge accounting is not achieved or is not fully effective. Commentary provided in respect of results after
exceptional items and remeasurements is described as 'statutory'. Further details are provided in note 3 on page 51. A
reconciliation of business performance to statutory results is provided in the consolidated income statement on page 43.
DEFINITIONS
Constant currency
'Constant currency basis' refers to the reporting of the actual results against the results for the same period last year
which, in respect of any US$ currency denominated activity, have been translated using the average US$ exchange rate for
the year ended 31 March 2015, which was $1.58 to £1.00. The average rate for the year ended 31 March 2014, was $1.62 to
£1.00. Assets and liabilities as at 31 March 2014 have been retranslated at the closing rate at 31 March 2015 of $1.48 to
£1.00. The closing rate for the balance sheet date 31 March 2014 was $1.67 to £1.00.
Earnings per share
Prior year earnings per share figures are restated to reflect the impact of additional shares issued as scrip dividends.
Major storms
There were no storms categorised as 'Major storms' in 2014/15 or 2013/14. In 2012/13 Major storms were 'Superstorm' Sandy
in 2012 and the 'Nemo' snow storm in February 2013.
Other regulatory assets and liabilities
The revenues that National Grid's UK regulated businesses target to collect in any year are based on the regulator's
forecasts for that year. Under the new UK price control arrangements, revenues will be adjusted in future years to take
account of actual levels of collected revenue, costs and outputs delivered when they differ from those regulatory
forecasts. This includes adjustments designed to share performance efficiencies with customers. National Grid's estimate of
these future revenue adjustments are represented in the calculation of regulated financial performance and regulated
financial position as "other regulatory assets and liabilities". These include:
· Revenues associated with sharing under the totex incentive mechanism
· Adjustments for changes to customer output requirements on totex allowances
· True ups for pass through costs, actual RPI and pensions deficit repair costs
· Differences between allowed/targeted and recovered revenues
· Differences between revenues collected and earned under other incentive mechanisms
In addition, other regulatory assets and liabilities include balances relating to "phasing adjustments". Where expenditure
allowances have been awarded in one year but are associated with expenditure that is now expected to be incurred in a
different year National Grid applies "phasing adjustments" to better match the allowances to the year of expenditure. In
such cases, the revenues associated with these re-phased allowances are included in other regulated assets and liabilities
and reversed when the associated expenditure is incurred.
In the US, other regulatory assets and liabilities include regulatory assets and liabilities which are not included in the
definition of rate base within that jurisdiction, including working capital where appropriate.
Performance RAV
UK performance efficiencies are in part remunerated by the creation of additional RAV which is expected to result in future
earnings under regulatory arrangements. This is an addition to RAV above and beyond that associated with the remuneration
of actual expenditure and is termed "performance RAV".
Timing
Under the Group's regulatory frameworks, the majority of the revenues that National Grid is allowed to collect each year
are governed by a regulatory price control or rate plan. If a company collects more than this allowed level of revenue, the
balance must be returned to customers in subsequent years, and if it collects less than this level of revenue it may
recover the balance from customers in subsequent years. These variances between allowed and collected revenues give rise to
"over and under recoveries". In addition, a number of costs in both the UK and the US are pass-through costs (including
substantial commodity and energy efficiency costs in the US), and are fully recoverable from customers. Any timing
differences between costs of this type being incurred and their recovery through revenues are also included in over and
under-recoveries. In the UK, timing differences also include an estimation of the difference between revenues earned under
revenue incentive mechanisms and any associated revenues collected. UK timing balances and movements exclude any
adjustments associated with changes to controllable cost (totex) allowances or adjustments under the totex incentive
mechanism.
Identification of these timing differences enables a better comparison of performance from one period to another. Opening
balances of under and over-recoveries have been restated where appropriate to correspond with regulatory filings and
calculations.
Totex
Under the UK RIIO regulatory arrangements the Company is incentivised to deliver efficiencies against cost targets set by
the regulator. In total, these targets are set in terms of a regulatory definition of combined total operating and capital
expenditure, also termed "totex". The definition of totex differs from the total combined regulated controllable operating
costs and regulated capital expenditure as reported in this statement according to IFRS accounting principles. Key
differences are capitalised interest, capital contributions, exceptional costs, costs covered by other regulatory
arrangements and unregulated costs.
METRIC CALCULATIONS
Regulated financial performance (£m) 2014/15 2013/14
UKET UKGT UKGD US REG UKET UKGT UKGD US REG
Statutory operating profit 1,237 437 826 1,081 1,027 406 780 1,388
Exceptional items/remeasurements - - - 83 60 11 124 (263)
Adjusted operating profit 1,237 437 826 1,164 1,087 417 904 1,125
Depreciation and amortisation 376 172 286 452 343 172 271 419
EBITDA 1,613 609 1,112 1,616 1,430 589 1,175 1,544
Regulatory treatment adjustments
Movement in UK regulatory "IOUs" (130) (16) (28) - (19) (28) (59) -
US timing - - - (30) - - - (10)
Performance RAV created 77 (7) 41 - 30 (7) 28 -
Pensions deficit contributions (48) (49) (5) (92) (47) (46) (9) (120)
3% RAV Indexation 326 166 255 - 301 162 252 -
UK deferred taxation adjustment 88 85 60 - 53 12 85 -
Regulatory depreciation (728) (194) (434) (452) (680) (174) (420) (419)
Fast/slow money adjustment 34 54 (182) - (2) 44 (197) -
Regulated financial performance 1,232 648 819 1042 1,066 552 855 995
Group RoE calculation(year ended 31 March)
2015 2014 2013*
Regulated financial performance 3,741 3,468 3,696
Operating profit of other activities 199 131 62
Group financial performance 3,940 3,599 3,758
Share of post-tax results of joint ventures 46 28 18
Non-controlling interests 8 12 (1)
Adjusted group interest charge (945) (1,055) (1,057)
Group tax charge (695) (581) (665)
Tax on adjustments (14) 73 44
Group financial performance after interest and tax 2,340 2,076 2,097
Opening rate base/RAV 35,237 33,128 31,424
Opening NBV of non-regulated businesses 1,341 1,185 979
Joint Ventures 358 371 341
Opening Goodwill 4,856 5,028 4,776
Opening capital employed 41,792 39,712 37,520
Net Debt (21,974) (21,429) (19,597)
Opening Equity 19,818 18,283 17,923
Return on Equity 11.8% 11.4% 11.7%
* Impact of major US storms removed from the calculation as presented. Including storm costs, 2012/13 Group RoE was 11.2%.
Regulated financial position (£m - constant currency) 2014/15
UKET UKGT UKGD US REG
Opening RAV/rate base 10,854 5,529 8,495 10,988
In year movement 485 23 16 603
Closing RAV/ratebase 11,339 5,552 8,511 11,591
Opening other regulatory assets and liabilities 197 174 (55) 1,558
In year movement (130) (16) (28) 331
Closing other regulatory assets and liabilities 67 158 (83) 1,889
Closing regulated financial position 11,406 5,710 8,428 13,480
Total 2014/15 39,024
DESCRIPTION OF METRIC CALCULATIONS
Regulated financial performance
The regulated financial performance calculation provides a measure of the performance of the regulated operations before
the impacts of interest and taxation. It makes adjustments to reported operating profit to reflect the impact of the
businesses' regulatory arrangements when presenting financial performance. It reflects both the value realised on behalf of
providers of capital in the year and also an estimation of net value created, but not yet realised, that is reasonably
expected to be realised or returned to customers in future periods under the Group's regulatory arrangements.
The principal adjustments from reported operating profit to regulated financial performance are:
Adjustment Calculation
US timing & movement in UK regulatory "IOUs"Revenue related to performance in one year may be recovered in later years. Revenue may be recovered in one year but be required to be returned to customers in future years. US: As per US TimingUK: Movement in other regulated assets and liabilities
Performance RAVUK performance efficiencies are in part remunerated by the creation of additional RAV which is expected to result in future earnings under regulatory arrangements. In year totex outperformance multiplied by the appropriate regulatory capitalisation ratio and multiplied by the retained company incentive sharing ratio.
Pension adjustment Cash payments against pension deficits in the UK are recoverable under regulatory contracts. In US Regulated operations, US GAAP pension charges are generally recoverable through rates. Revenue recoveries are recognised under IFRS but payments are not UK: cash payments against the regulatory proportion of pension deficits in the UK regulated businessUS: the difference between IFRS and US GAAP pension charges.
charged against IFRS operating profits in the year.
3% RAV IndexationFuture UK revenues expected to be set using an asset base adjusted for inflation. UK RAV multiplied by 3%.
UK deferred taxation adjustmentFuture UK revenues are expected to recover cash taxation cost including the unwinding of deferred taxation balances created in the current year. The difference between 1. IFRS EBITDA less other regulatory adjustments and 2. IFRS EBITDA less other regulatory adjustments less current taxation (adjusted for interest tax shield) then grossed up at full UK statutory tax rate.
Regulatory depreciation US and UK regulated revenues include allowance for a return of regulatory capital in accordance with regulatory assumed asset lives. This return does not form part of regulatory profit. Regulatory depreciation.
Fast/slow money adjustment The regulatory remuneration of costs incurred is split between in year revenue allowances and the creation of additional RAV. This does not align with the classification of costs as operating costs and fixed asset additions under IFRS accounting Difference between IFRS classification of costs as operating costs or fixed asset additions and the regulatory classification.
principles.
Group RoE Calculation
The Group Return on Equity (RoE) calculation provides a measure of the performance of the whole Group compared with the
amounts invested by the Group in assets attributable to equity shareholders.
Calculation: Regulatory financial performance less adjusted interest and adjusted taxation divided by equity investment in
assets
· Adjusted interest removes interest on pensions, capitalised interest and release of provisions Adjusted taxation
adjusts the Group taxation charge for differences between IFRS profit before tax and regulated financial performance less
adjusted interest
· Equity investment in assets is calculated as the total opening UK regulatory asset value, the total opening US rate
base plus goodwill plus opening net book value of joint ventures and other activities; minus opening net debt as reported
under IFRS
US Regulated Return on Equity (nominal)
US Regulated Return on Equity is a measure of how a business is performing operationally against the assumptions used by
the regulator.
This US operational return measure is calculated using the assumption that the businesses are financed in line with the
regulatory adjudicated capital structure.
This is a post-tax US GAAP metric as calculated annually (calendar year to 31 December).
Calculation: Regulated net income divided by equity rate base:
· Regulated net income calculated as US GAAP operating profit less interest on the adjudicated debt portion of the rate
base (calculated at the actual rate on long term debt, adjusted where the proportion of long term debt in the capital
structure is materially different from the assumed regulatory proportion) less tax at the adjudicated rate
· Regulated net income is adjusted for earned savings in New York and Narragansett Electric and for certain material
specified items
· Equity rate base is the average rate base for the calendar year as reported to the Group's regulators or, where a
reported rate base is not available, an estimate based on rate base calculations used in previous rate filings multiplied
by the adjudicated equity portion in the regulatory capital structure
UK Regulated Return on Equity (nominal)
UK operational return is a measure of how a business is performing operationally against the assumptions used by the
regulator.
These returns are calculated using the assumption that the businesses are financed in line with the regulatory adjudicated
capital structure, at the cost of debt assumed by the regulator.
Calculation: Base allowed Return on Equity plus or minus the following items
· Additional allowed revenues/profits earned in the year from incentive schemes, less associated corporation tax
charge;
· Totex outperformance multiplied by the company sharing factor set by the regulator; and
· Revenues (net of associated depreciation and base allowed asset return) allowed in the year associated with incentive
performance earned under previous price controls but not yet fully recovered, less associated corporation tax charge
(excluding logging up or pensions recovery)
Divided by average equity RAV in line with regulatory assumed capital structure.
PROVISIONAL FINANCIAL TIMETABLE
4 June 2015 Ordinary shares go ex-dividend
5 June 2015 Record date for 2014/15 final dividend
11 June 2015 Scrip reference price announced
22 June 2015 Scrip election date for 2014/15 final dividend
21 July 2015 Annual General Meeting, ICC, Birmingham
5 August 2015 2014/15 final dividend paid to qualifying shareholders
10 November 2015 2015/16 half year results
26 November 2015 Ordinary shares go ex-dividend
27 November 2015 Record date for 2015/16 interim dividend
3 December 2015 Scrip reference price announced
11 December 2015 Scrip election date for 2015/16 interim dividend
13 January 2016 2015/16 interim dividend paid to qualifying shareholders
May 2016 2015/16 preliminary results
American Depositary Receipt (ADR) Deposit Agreement
The Company amended the deposit agreement under which the ADRs representing its ordinary shares are issued to allow a fee
of up to $0.05 per ADR to be charged for any cash distribution made to ADR holders, including cash dividends. ADR holders
who receive cash in relation to the 2014/15 final dividend will be charged a fee of $0.02 per ADR by the Depositary prior
to distribution of the cash dividend.
CAUTIONARY STATEMENT
This announcement contains certain statements that are neither reported financial results nor other historical information.
These statements are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include information with
respect to National Grid's financial condition, its results of operations and businesses, strategy, plans and objectives.
Words such as 'aims', 'anticipates', 'expects', 'should', 'intends', 'plans', 'believes', 'outlook', 'seeks', 'estimates',
'targets', 'may', 'will', 'continue', 'project' and similar expressions, as well as statements in the future tense,
identify forward-looking statements. These forward-looking statements are not guarantees of National Grid's future
performance and are subject to assumptions, risks and uncertainties that could cause actual future results to differ
materially from those expressed in or implied by such forward-looking statements. Many of these assumptions, risks and
uncertainties relate to factors that are beyond National Grid's ability to control or estimate precisely, such as changes
in laws or regulations, announcements from and decisions by governmental bodies or regulators (including the timeliness of
consents for construction projects); the timing of construction and delivery by third parties of new generation projects
requiring connection; breaches of, or changes in, environmental, climate change and health and safety laws or regulations,
including breaches or other incidents arising from the potentially harmful nature of its activities; network failure or
interruption, the inability to carry out critical non network operations and damage to infrastructure, due to adverse
seasonal and weather conditions including the impact of major storms as well as the results of climate change, due to
counterparties being unable to deliver physical commodities, or due to unauthorised access to or deliberate breaches of
National Grid's IT systems and supporting technology; performance against regulatory targets and standards and against
National Grid's peers with the aim of delivering stakeholder expectations regarding costs and efficiency savings, including
those related to investment programmes and internal transformation and remediation plans; and customers and counterparties
(including financial institutions) failing to perform their obligations to the Company. Other factors that could cause
actual results to differ materially from those described in this announcement include fluctuations in exchange rates,
interest rates and commodity price indices; restrictions and conditions (including filing requirements) in National Grid's
borrowing and debt arrangements, funding costs and access to financing; regulatory requirements for the Company to maintain
financial resources in certain parts of its business and restrictions on some subsidiaries' transactions such as paying
dividends, lending or levying charges; inflation or deflation; the delayed timing of recoveries and payments in National
Grid's regulated businesses and whether aspects of its activities are contestable; the funding requirements and performance
of National Grid's pension schemes and other post-retirement benefit schemes; the failure to attract, train or retain
employees with the necessary competencies, including leadership skills, and any significant disputes arising with National
Grid's employees or the breach of laws or regulations by its employees; and the failure to respond to market developments,
including competition from onshore transmission, and grow the Company's business to deliver its strategy, as well as
incorrect or unforeseen assumptions or conclusions (including unanticipated costs and liabilities) relating to business
development activity, including assumptions in connection with joint ventures. For further details regarding these and
other assumptions, risks and uncertainties that may impact National Grid, please read the Strategic Report section and the
'Risk factors' on pages 167 to 169 of National Grid's most recent Annual Report and Accounts, as updated by National Grid's
unaudited half-year financial information for the six months ended 30 September 2014 published on 7 November 2014. In
addition, new factors emerge from time to time and National Grid cannot assess the potential impact of any such factor on
its activities or the extent to which any factor, or combination of factors, may cause actual future results to differ
materially from those contained in any forward-looking statement. Except as may be required by law or regulation, the
Company undertakes no obligation to update any of its forward-looking statements, which speak only as of the date of this
announcement.
Consolidated income statement
for the years ended 31 March
2015 2014
Notes £m £m
Revenue 2(a) 15,201 14,809
Operating costs (11,421) (11,074)
Operating profit
Before exceptional items and remeasurements 2(b) 3,863 3,664
Exceptional items and remeasurements 3 (83) 71
Total operating profit 2(b) 3,780 3,735
Finance income 4 36 36
Finance costs
Before exceptional items and remeasurements 4 (1,069) (1,144)
Exceptional items and remeasurements 3 (165) 93
Total finance costs 4 (1,234) (1,051)
Share of post-tax results of joint ventures and associates 46 28
Profit before tax
Before exceptional items and remeasurements 2(b) 2,876 2,584
Exceptional items and remeasurements 3 (248) 164
Total profit before tax 2(b) 2,628 2,748
Tax
Before exceptional items and remeasurements 5 (695) (581)
Exceptional items and remeasurements 3 78 297
Total tax 5 (617) (284)
Profit after tax
Before exceptional items and remeasurements 2,181 2,003
Exceptional items and remeasurements 3 (170) 461
Profit for the year 2,011 2,464
Attributable to:
Equity shareholders of the parent 2,019 2,476
Non-controlling interests (8) (12)
2,011 2,464
Earnings per share1
Basic 6(a) 53.6p 65.7p
Diluted 6(b) 53.4p 65.4p
1. Comparative amounts have been restated to reflect the impact of additional shares issued as scrip dividends.
Consolidated statement of comprehensive incomefor the years ended 31 March
2015 2014
£m £m
Profit for the year 2,011 2,464
Other comprehensive (loss)/income
Items that will never be reclassified to profit or loss:
Remeasurements of net retirement benefit obligations (771) 485
Tax on items that will never be reclassified to profit or loss 299 (172)
Total items that will never be reclassified to profit or loss (472) 313
Items that may be reclassified subsequently to profit or loss:
Exchange adjustments 175 (158)
Net (losses)/gains in respect of cash flow hedges (154) 63
Transferred to profit or loss in respect of cash flow hedges 13 27
Net gains on available-for-sale investments 41 6
Transferred to profit or loss on sale of available-for-sale investments (8) (14)
Tax on items that may be reclassified subsequently to profit or loss 11 (2)
Total items that may be reclassified subsequently to profit or loss 78 (78)
Other comprehensive (loss)/income for the year, net of tax (394) 235
Total comprehensive income for the year 1,617 2,699
Attributable to:
Equity shareholders of the parent 1,624 2,711
Non-controlling interests (7) (12)
1,617 2,699
Consolidated statement of changes in equityfor the years ended 31 March Share capital Share premium account Retained earnings Other equity reserves Total share-holders' equity Non-controlling interests Total equity
Note £m £m £m £m £m £m £m
At 1 April 2013 433 1,344 13,133 (4,681) 10,229 5 10,234
Profit for the year - - 2,476 - ( 2,476 (12) 2,464
Total other comprehensive income/(loss) for the year - - 313 (78) 235 - 235
Total comprehensive income/(loss) for the year - - 2,789 (78) 2,711 (12) 2,699
Equity dividends 7 - - (1,059) - (1,059) - (1,059)
Scrip dividend related share issue1 6 (8) - - (2) - (2)
Issue of treasury shares - - 14 - 14 - 14
Purchase of own shares - - (5) - (5) - (5)
Other movements in non-controlling interests - - (4) - (4) 15 11
Share-based payment - - 20 - 20 - 20
Tax on share-based payment - - 7 - 7 - 7
At 31 March 2014 439 1,336 14,895 (4,759) 11,911 8 11,919
Profit for the year - - 2,019 - 2,019 (8) 2,011
Total other comprehensive (loss)/income for the year - - (472) 77 (395) 1 (394)
Total comprehensive income/(loss) for the year - - 1,547 77 1,624 (7) 1,617
Equity dividends 7 - - (1,271) - (1,271) - (1,271)
Scrip dividend related share issue1 4 (5) - - (1) - (1)
Purchase of treasury shares - - (338) - (338) - (338)
Issue of treasury shares - - 23 - 23 - 23
Purchase of own shares - - (7) - (7) - (7)
Other movements in non-controlling interests - - (3) - (3) 11 8
Share-based payment - - 20 - 20 - 20
Tax on share-based payment - - 4 - 4 - 4
At 31 March 2015 443 1,331 14,870 (4,682) 11,962 12 11,974
1. Included within share premium account are costs associated with scrip dividends.
Consolidated statement of financial positionas at 31 March
2015 2014
Notes £m £m
Non-current assets
Goodwill 5,145 4,594
Other intangible assets 802 669
Property, plant and equipment 40,723 37,179
Other non-current assets 80 87
Pension assets 121 174
Financial and other investments 330 284
Investments in joint ventures and associates 318 351
Derivative financial assets 9 1,539 1,557
Total non-current assets 49,058 44,895
Current assets
Inventories and current intangible assets 340 268
Trade and other receivables 2,836 2,855
Financial and other investments 9 2,559 3,599
Derivative financial assets 9 177 413
Cash and cash equivalents 9 119 354
Total current assets 6,031 7,489
Total assets 55,089 52,384
Current liabilities
Borrowings 9 (3,028) (3,511)
Derivative financial liabilities 9 (635) (339)
Trade and other payables (3,292) (3,031)
Current tax liabilities (184) (168)
Provisions (235) (282)
Total current liabilities (7,374) (7,331)
Non-current liabilities
Borrowings 9 (22,882) (22,439)
Derivative financial liabilities 9 (1,764) (824)
Other non-current liabilities (1,919) (1,841)
Deferred tax liabilities (4,297) (4,082)
Pensions and other post-retirement benefit obligations (3,379) (2,585)
Provisions (1,500) (1,363)
Total non-current liabilities (35,741) (33,134)
Total liabilities (43,115) (40,465)
Net assets 11,974 11,919
Equity
Share capital 443 439
Share premium account 1,331 1,336
Retained earnings 14,870 14,895
Other equity reserves (4,682) (4,759)
Shareholders' equity 11,962 11,911
Non-controlling interests 12 8
Total equity 11,974 11,919
Consolidated cash flow statementfor the years ended 31 March
2015 2014
Notes £m £m
Cash flows from operating activities
Total operating profit 2(b) 3,780 3,735
Adjustments for:
Exceptional items and remeasurements 3 83 (71)
Depreciation, amortisation and impairment 1,494 1,417
Share-based payment charge 20 20
Changes in working capital 301 (59)
Changes in provisions (41) (150)
Changes in pensions and other post-retirement benefit obligations (270) (323)
Cash flows relating to exceptional items (17) (150)
Cash generated from operations 5,350 4,419
Tax paid (343) (400)
Net cash inflow from operating activities 5,007 4,019
Cash flows from investing activities
Acquisition of investments - (4)
Purchases of intangible assets (207) (179)
Purchases of property, plant and equipment (3,076) (2,944)
Disposals of property, plant and equipment 9 4
Dividends received from joint ventures 79 38
Interest received 37 35
Net movements in short-term financial investments 1,157 1,720
Net cash flow used in investing activities (2,001) (1,330)
Cash flows from financing activities
Purchase of treasury shares (338) -
Proceeds from issue of treasury shares 23 14
Purchase of own shares (7) (5)
Proceeds received from loans 1,534 1,134
Repayments of loans (2,839) (2,192)
Net movements in short-term borrowings and derivatives 623 37
Interest paid (826) (901)
Exceptional finance costs on the redemption of debt (152) -
Dividends paid to shareholders (1,271) (1,059)
Net cash flow used in financing activities (3,253) (2,972)
Net decrease in cash and cash equivalents 8 (247) (283)
Exchange movements 24 (26)
Net cash and cash equivalents at start of year 339 648
Net cash and cash equivalents at end of year1 116 339
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