During the second quarter of fiscal 2021, we revised the definitions of Adjusted EBIT and Adjusted EBITDA to exclude foreign exchange gains and losses on the revaluation of other assets and liabilities, including short-term deposits. and cash and cash equivalents. We consider that the modified alternative performance measure makes it possible to better measure the underlying operating profitability of the Group, and is consistent with the treatment of the revaluation of other balance sheet items such as debt and unrealized hedges. It also recognizes that we may use cash and / or derivatives to hedge on-balance sheet debt and / or working capital exposures and therefore it makes sense to present gains or losses on revaluation of all of these items. consistently, excluded from EBITDA. We present Adjusted EBIT and Adjusted EBITDA for all historical periods included in Exhibit 99.1 of this form. 6-K using the new definitions of these measures. We previously defined ?? Adjusted EBITDA ?? as profit before tax charge; exceptional items; financial charges (net of capitalized interest); financial income; gains / losses on debts and unrealized derivatives, gains / losses on derivatives entered into for debt hedging purposes, unrealized fair value gains / losses on investments; share of income from equity-accounted investments; depreciation and amortization. The new definition of ?? Adjusted EBITDA ?? is the profit before: tax expense; exceptional items; financial charges (net of capitalized interest) and financial income; gains / losses on debt and unrealized derivatives, realized derivatives entered into for debt hedging purposes and investments in equity or debt held at fair value; foreign exchange gains / losses on other assets and liabilities, including short-term deposits and cash and cash equivalents; share of income from equity-accounted investments; depreciation and amortization. We define ?? Adjusted EBIT ?? in adjusted EBITDA but including the share of income from equity-accounted investments, depreciation and amortization. We define ?? Adjusted EBIT margin ?? as adjusted EBIT divided by revenue. We previously defined “free cash flow”? as net cash generated by operating activities less net cash used in investing activities (excluding movements in short-term deposits), and after financial charges and commissions paid. During the second quarter of fiscal 2021, we revised the definition of “free cash flow”? exclude non-automotive investments and net investments in equity and debt securities held at fair value, which are considered to be investments of a more financial nature. The definition has also been changed to exclude foreign exchange gains / losses on short-term deposits and cash and cash equivalents, thus ensuring a more consistent treatment since the revaluation of other current assets and liabilities is already excluded. We believe that these changes should provide greater clarity of free cash flow and that these changes will result in measures that are closer to those of our competitors, thus providing better comparability for users of the alternative performance measures. We present free cash flow for all historical periods included in Exhibit 99.1 of this form. 6-K using the new definition of this measure. The new definition corresponds to the net cash generated by operating activities less the net cash used in automotive investment activities, excluding investments in consolidated entities and movements in financial investments, and after financial charges and commissions paid. Financial investments are those presented as cash and cash equivalents, short-term deposits and other investments, and investments in equity or debt securities held at fair value. We define ?? net cash / (debt) ?? in cash and cash equivalents plus short-term deposits minus total borrowings on the balance sheet, which includes secured and unsecured borrowings and factoring facilities. We define “total proceeds and other investments?” such as cash used in the purchase of property, plant and equipment, intangible assets, investments in equity-accounted investments and other commercial investments, the acquisition of subsidiaries and research and development costs expensed.

In Exhibit 99.1 of this form
6-K, We present Adjusted EBITDA, Adjusted EBIT, Adjusted EBIT Margin, Free Liquidity, Free Cash Flow, Net Cash / (Debt), Total Revenue and Other Investments and related ratios for Jaguar Land Rover Automotive plc and its consolidated subsidiaries. Adjusted EBITDA, Adjusted EBIT, Adjusted EBIT Margin, Free Liquidity, Free Cash Flow, Net Cash / (Debt), Total Income and Other Investments and the associated ratios should not be viewed in isolation and are not measures of our financial performance or liquidity under IFRS and should not be viewed as an alternative to profit for the period or any other derived performance measure under IFRS or as an alternative to related cash flows operating, investing or financing activities or any other derivative measure of our liquidity in accordance with IFRS. Adjusted EBITDA, Adjusted EBIT, Adjusted EBIT Margin, Free Liquidity, Free Cash Flow, Net Cash / (Debt), and Total Income and Other Investments do not necessarily indicate whether cash flows will be sufficient or available for cash flow purposes and may not be indicative of our results of operations. In addition, Adjusted EBITDA, Adjusted EBIT, Adjusted EBIT Margin, Free Liquidity, Free Cash Flow, Net Cash / (Debt) and Total Revenue and Other Investments, as we define them, may not be comparable to other metrics with the same name used by other companies. Please see ?? Summary of Consolidated Financial Data and Others ?? for a quantitative reconciliation of EBITDA adjusted to profit for the period, free cash flow to net cash generated by / (used in) operating activities, net cash / (debt) to cash and cash equivalents, and the total net cash income and other investments used in investing activities, in each case the closest comparable IFRS financial measure.

Adjusted EBITDA, Adjusted EBIT, Adjusted EBIT Margin, Free Liquidity and Free Cash Flow have limits as analytical tools, and you should not consider them in isolation. Some of these limitations on Adjusted EBITDA, Adjusted EBIT and Adjusted EBIT margin are as follows: (i) Adjusted EBITDA, Adjusted EBIT and Adjusted EBIT margin do not reflect our capital expenditures or capitalized product development costs, our future capital expenditure needs or our contractual commitments; (ii) Adjusted EBITDA, Adjusted EBIT and Adjusted EBIT margin do not reflect changes or cash requirements for our working capital requirements; (iii) Adjusted EBITDA, Adjusted EBIT and Adjusted EBIT margin do not reflect interest expense or cash requirements necessary to service interest or principal payments on our debt; (iv) although depreciation and amortization are cashless charges, impaired and amortized assets will often need to be replaced in the future and Adjusted EBITDA does not reflect the cash requirements that would be required for such replacements; and (v) Adjusted EBITDA, Adjusted EBIT and Adjusted EBIT margin exclude the impact of one-off items and non-recurring reserves and charges.



Source link

Leave a Reply

Your email address will not be published.