| FISCAL 2022 | FISCAL 2021 | ||
|---|---|---|---|
| Gearing ratio | Borrowings (1) – operating cash (2) | 28.7% | 46.6% |
| Shareholders’ equity and non-controlling interests | |||
| Net debt ratio | Borrowings (1) – operating cash (2) | 1.0 | 1.7 |
| Underlying EBITDA (underlying operating profit before Interest, Taxes, Depreciation and Amortization) (3) | |||
| Debt coverage | Borrowings | 4.6 years | 8 years |
| Operating cash flow | |||
| Financial independence | Long-term borrowings | 128.3% | 171.7% |
| Shareholders’ equity and non-controlling interests | |||
| Return on equity | Profit attributable to equity holders of the parent | 18.7% | 4.6% |
| Equity attributable to equity holders of the parent (before profit for the period) | |||
| ROCE (Return on capital employed) | Underlying operating profit after tax (4) | 17.2% | 9.9% |
| Average capital employed (5) | |||
| Interest cover | Operating profit | 13.9 | 4.1 |
| Net borrowing cost |
Financial ratios have been computed based on the following key indicators:
| (in million euros) | FISCAL 2022 | FISCAL 2021 | |
|---|---|---|---|
|
(1)Borrowings(1) |
Long-term borrowings | 5,709 | 5,453 |
| + Short-term borrowings | 35 | 635 | |
| - Derivative financial instruments recognized as assets | (2) | (17) | |
| BORROWINGS | 5,742 | 6,072 | |
| (2)Operating cash | Cash and cash equivalents | 3,225 | 3,539 |
| + Restricted cash and financial assets related to the Benefits & Rewards Services activity | 1,257 | 1,062 | |
| - Bank overdrafts | (8) | (7) | |
| OPERATING CASH | 4,474 | 4,594 | |
| (3)Underlying EBITDA | Underlying operating profit | 1,059 | 578 |
| + Depreciation and amortization | 477 | 537 | |
| - Lease payments | (225) | (260) | |
| UNDERLYING EBITDA (UNDERLYING OPERATING PROFIT BEFORE DEPRECIATION AND AMORTIZATION) | 1,311 | 854 | |
| (4)Underlying operating profit after tax | Underlying operating profit | 1,059 | 578 |
|
Underlying Effective tax rate(4) |
27.5% | 28.3% | |
| UNDERLYING OPERATING PROFIT AFTER TAX | 768 | 414 | |
|
(5) Average capital employed(2)
|
Property, plant and equipment | 485 | 513 |
| +Right-of-use assets relating to leases | 899 | 1,112 | |
| +Leases liabilities | (942) | (1,148) | |
| +Goodwill | 6,211 | 5,787 | |
| +Other intangible assets | 655 | 652 | |
| +Client investments | 614 | 568 | |
| +Working capital excluding restricted cash and financial assets of the Benefits & Rewards Services activity | (3,452) | (3,391) | |
|
+Impact of assets held for sale net of liabilities(3) |
3 | 78 | |
| AVERAGE CAPITAL EMPLOYED | 4,473 | 4,172 |
(1) The Group does not believe the accounting treatment introduced by IFRS 16 modifies the operating nature of its lease transactions. Accordingly, to ensure the Group’s performance measures continue to best reflect its operating performance, the Group considers repayments of lease liabilities as operating items impacting the Free cash flow, which integrates all lease payments (fixed or variable). Consistently, the lease liabilities are not included in Net debt.
(2) Average capital employed between the beginning and the end of the period.
(3) Reinstatement of the capital employed of Childcare activity which gave rise to classification in assets and liabilities held for sale.
(4) Below the underlying effective tax rate calculation:
