Universal Registration Document Fiscal 2025

4.3 Additional information and condensed Group organization chart

4.3.1 Financial ratios

		FISCAL 20255	FISCAL 2024
Gearing ratio	Gearing ratio Borrowings (A) – operating cash (B)	Gearing ratio FISCAL 20255 70.7%	Gearing ratio FISCAL 2024 68.5%
Gearing ratio	Shareholders’ equity and non-controlling interests	Gearing ratio FISCAL 20255 70.7%	Gearing ratio FISCAL 2024 68.5%
Net debt ratio	Net debt ratio Borrowings (A) – operating cash (B)	Net debt ratio FISCAL 20255 1.8	Net debt ratio FISCAL 2024 1.7
Net debt ratio	Underlying EBITDA (underlying operating profit before impairment, depreciation and amortization) (C)	Net debt ratio FISCAL 20255 1.8	Net debt ratio FISCAL 2024 1.7
Debt coverage	Debt coverage Borrowings	Debt coverage FISCAL 20255 4 years	Debt coverage FISCAL 2024 3.5 years
Debt coverage	Operating cash flow*	Debt coverage FISCAL 20255 4 years	Debt coverage FISCAL 2024 3.5 years
Financial independence	Financial independence Non-current borrowings	Financial independence FISCAL 20255 104.2%	Financial independence FISCAL 2024 105.6%
Financial independence	Shareholders’ equity and non-controlling interests	Financial independence FISCAL 20255 104.2%	Financial independence FISCAL 2024 105.6%
ROE (Return on equity)	ROE (Return on equity) Profit attributable to equity holders of the parent	ROE (Return on equity) FISCAL 20255 22.5%	ROE (Return on equity) FISCAL 2024 20.4%
ROE (Return on equity)	Shareholders' equity attributable to equity holders of the parent (before profit for the year)	ROE (Return on equity) FISCAL 20255 22.5%	ROE (Return on equity) FISCAL 2024 20.4%
ROCE (Return on capital employed)	ROCE (Return on capital employed) Underlying operating profit after tax	ROCE (Return on capital employed) FISCAL 20255 13.5%	ROCE (Return on capital employed) FISCAL 2024 12.9%
ROCE (Return on capital employed)	Average capital employed	ROCE (Return on capital employed) FISCAL 20255 13.5%	ROCE (Return on capital employed) FISCAL 2024 12.9%
Interest cover	Interest cover Operating profit	Interest cover FISCAL 20255 15.1	Interest cover FISCAL 2024 14.8
Interest cover	Net borrowing cost	Interest cover FISCAL 20255 15.1	Interest cover FISCAL 2024 14.8

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* Operating cash flow as defined in the activity report in note 3.3 (chapter 3 of URD) for Fiscal 2025 and 2024.

Financial ratios have been calculated based on the following key indicators:

(in millions of euros)		FISCAL 2025	FISCAL 2024
(A) Borrowings⁽¹⁾	(A) Borrowings ⁽¹⁾ Non current borrowings	(A) Borrowings ⁽¹⁾FISCAL 2025 3,962	(A) Borrowings ⁽¹⁾ FISCAL 2024 4,011
	(in millions of euros) + Current borrowings	819	FISCAL 2025 725
	(in millions of euros) - Derivative financial instruments recognized as assets	(4)	FISCAL 2025 (2)
	(in millions of euros) BORROWINGS	4,777	FISCAL 20254,734
(B) Operating cash	(B) Operating cash Cash and cash equivalents	(B) Operating cash FISCAL 2025 2,091	(B) Operating cash FISCAL 2024 2,137
	(in millions of euros) - Bank overdrafts	(1)	FISCAL 2025 (3)
	(in millions of euros) OPERATING CASH	2,090	FISCAL 20252,134
(C) Underlying EBITDA	(C) Underlying EBITDA Underlying operating profit	(C) Underlying EBITDA FISCAL 2025 1,139	(C) Underlying EBITDA FISCAL 2024 1,109
	(in millions of euros) + Impairment, depreciation and amortization	454	FISCAL 2025 434
	(in millions of euros) + Client investment amortization	131	FISCAL 2025 135
	(in millions of euros) - Lease payments	(214)	FISCAL 2025 (189)
	(in millions of euros) UNDERLYING EBITDA (UNDERLYING OPERATING PROFIT BEFORE IMPAIRMENT, DEPRECIATION AND AMORTIZATION)	1,510	FISCAL 20251,489
(D) Underlying operating profit after tax	(D) Underlying operating profit after tax Underlying operating profit	(D) Underlying operating profit after tax FISCAL 2025 1,139	(D) Underlying operating profit after tax FISCAL 2024 1,109
	(in millions of euros) Underlying effective tax rate⁽⁴⁾	25.0%	FISCAL 2025 26.0%
	(in millions of euros) UNDERLYING OPERATING PROFIT AFTER TAX	854	FISCAL 2025821
(E) Average capital employed⁽²⁾	(E) Average capital employed ⁽²⁾ Property, plant and equipment	(E) Average capital employed ⁽²⁾FISCAL 2025 562	(E) Average capital employed ⁽²⁾ FISCAL 2024 531
	(in millions of euros) + Right-of-use assets	645	FISCAL 2025 730
	(in millions of euros) + Lease liabilities	(696)	FISCAL 2025 (780)
	(in millions of euros) + Goodwill	5,484	FISCAL 2025 5,566
	(in millions of euros) + Other intangible assets	472	FISCAL 2025 442
	(in millions of euros) + Client investments	705	FISCAL 2025 700
	(in millions of euros) + Working capital excluding financial assets	(860)	FISCAL 2025 (916)
	(in millions of euros) + Impact of assets held for sale⁽³⁾	10	FISCAL 2025 79
	(in millions of euros) AVERAGE CAPITAL EMPLOYED	6,320	FISCAL 20256,352

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The Group does not believe the accounting treatment introduced by IFRS 16 modifies the operating nature of its leases. 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 with an impact on free cash flow, integrating all lease payments (fixed or variable). As a result, lease liabilities are excluded from borrowings.
Average capital employed between the beginning and the end of the Fiscal year.
Reinstatement of the capital employed of the entity Denali Universal, LLC in the United States which was reclassified in assets held for sale and related liabilities as of August 31, 2024.
The underlying effective tax rate is calculated as follows: