Normalizing Income Statements Strictly Confidential

Table of Contents

Expense Detail Example

Example 1
Example 2
Example 3
Example 4
Albertsons
Tesco

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 Expense Detail

All figures in USD millions unless stated

Year 1 Year 2 Year 3

Expense Detail:
Cost of Sales (47,888.2) (51,189.3) (52,365.1)
Labor Expense (1,522.3) (1,661.9) (1,642.5)
Utilities Expense (100.0) (200.0) (100.0)
Rent Expense (500.0) (600.0) (500.0)
Finance Expense (1,029.3) (1,480.1) (1,651.2)
Non-recurring Expense – – (933.2)
Total Expenses ### ### ###

Normalizing Income Statements Page 2 of 19

 Income Statement

All figures in USD millions unless stated

Year 1 Year 2 Year 3

Sales 71,887.0 77,649.7 79,237.7

Expenses (51,039.8) (55,131.3) (57,192.0)
Earnings Before Tax 20,847.2 22,518.4 22,045.7
Earnings Before Tax Margin (Reported) 29.0% 29.0% 27.8%

Taxes (5,211.8) (5,629.6) (5,511.4)

Effective Tax Rate 25.0% 25.0% 25.0%

Net Income 15,635.4 16,888.8 16,534.3

Net Income Margin (Reported) 21.7% 21.7% 20.9%

Expense Detail:

Non-recurring Expense – – 933.2

This is not expected to recur after Year 3

Expenses (51,039.8) (55,131.3) (57,192.0)

Non-recurring Expense – – 933.2
Normalized Expenses (51,039.8) (55,131.3) (56,258.8)

Sales 71,887.0 77,649.7 79,237.7

Normalized Expenses (51,039.8) (55,131.3) (56,258.8)
Earnings Before Tax 20,847.2 22,518.4 22,978.9
Earnings Before Tax Margin (Adjusted) 29.0% 29.0% 29.0%

Taxes (5,211.8) (5,629.6) (5,511.4)

Effective Tax Rate 25.0% 25.0% 24.0%

Net Income 15,635.4 16,888.8 17,467.5

Net Income Margin (Adjusted) 21.7% 21.7% 22.0%

Normalizing Income Statements Page 3 of 19

 Income Statement (Further Adjusted)

All figures in USD millions unless stated

Year 1 Year 2 Year 3

Non-recurring Expense – – 933.2

Taxes (5,211.8) (5,629.6) (5,511.4)

Tax Adjustment – – (233.3) Assumes a 25% tax rate.
Adjusted Taxes (5,211.8) (5,629.6) (5,744.7)

Sales 71,887.0 77,649.7 79,237.7

Normalized Expenses (51,039.8) (55,131.3) (56,258.8)
Earnings Before Tax 20,847.2 22,518.4 22,978.9
Earnings Before Tax Margin (Adjusted) 29.0% 29.0% 29.0%

Taxes (Adjusted) (5,211.8) (5,629.6) (5,744.7)

Effective Tax Rate 25.0% 25.0% 25.0%

Net Income 15,635.4 16,888.8 17,234.2

Net Income Margin (Adjusted) 21.7% 21.7% 21.8%

Normalizing Income Statements Page 4 of 19

 Income Statement (Reported)

All figures in USD millions unless stated

Year 1 Year 2 Year 3

Net Sales 71,887.0 77,649.7 79,237.7

Cost of Sales (51,164.6) (55,894.1) (57,192.0)
Gross Profit 20,722.4 21,755.6 22,045.7

Selling, General & Administrative 1

(18,300.5) (19,596.0) (19,932.9)
Other Operating Expense 15.0 147.5 (43.9)
Operating Income (EBIT) 2,436.9 2,307.1 2,068.9

Interest Expense (481.9) (404.6) (492.1)

Other Non-Operating Expense 144.5 33.0 12.2
Earnings Before Tax (EBT) 2,099.5 1,935.5 1,589.0

Income Tax (Expense) / Benefit (479.9) (422.0) (293.0)

Net Income 1,619.6 1,513.5 1,296.0

Includes Restructuring charges of 56.6, 78.3, 45.1 in Year 1, Year 2, and Year 3, respectively. ⁽¹⁾

Normalizing Income Statements Page 5 of 19

 Income Statement (Adjusted)

All figures in USD millions unless stated

Year 1 Year 2 Year 3

Net Sales 71,887.0 77,649.7 79,237.7

Cost of Sales (51,164.6) (55,894.1) (57,192.0)
Gross Profit 20,722.4 21,755.6 22,045.7

Selling, General & Administrative 1

(18,243.9) (19,517.7) (19,887.8)
Other Operating Expense 15.0 147.5 (43.9)
Operating Income (EBIT) 2,493.5 2,385.4 2,114.0

Interest Expense (481.9) (404.6) (492.1)

Other Non-Operating Expense 144.5 33.0 12.2
Earnings Before Tax (EBT) 2,156.1 2,013.8 1,634.1

Income Tax (Expense) / Benefit (479.9) (422.0) (293.0) Assumes no tax adjustment at this point.

Net Income 1,676.2 1,591.8 1,341.1

Excludes Restructuring charges of 56.6, 78.3, 45.1 in Year 1, Year 2, and Year 3, respectively. ⁽¹⁾

Normalizing Income Statements Page 6 of 19

 Income Statement (Further Adjusted)

All figures in USD millions unless stated

Year 1 Year 2 Year 3

Net Sales 71,887.0 77,649.7 79,237.7

Cost of Sales (51,164.6) (55,894.1) (57,192.0)
Gross Profit 20,722.4 21,755.6 22,045.7

Selling, General & Administrative 1

(18,243.9) (19,517.7) (19,887.8)
Other Operating Expense 15.0 147.5 (43.9)
Operating Income (EBIT) 2,493.5 2,385.4 2,114.0

Interest Expense (481.9) (404.6) (492.1)

Other Non-Operating Expense 144.5 33.0 12.2
Earnings Before Tax (EBT) 2,156.1 2,013.8 1,634.1

Income Tax (Expense) / Benefit (494.0) (441.6) (304.3) Assumes tax adjustment at 25%.

Net Income 1,662.1 1,572.2 1,329.8

Excludes Restructuring charges of 56.6, 78.3, 45.1 in Year 1, Year 2, and Year 3, respectively. ⁽¹⁾

Reconciliation:
Restructuring 56.6 78.3 45.1
Tax Rate 25% 25% 25%
Tax Adjustment (14.2) (19.6) (11.3)
Reported Taxes (479.9) (422.0) (293.0)
Adjusted Taxes (494.0) (441.6) (304.3)

Normalizing Income Statements Page 7 of 19

 Income Statement (Reported)

All figures in USD millions unless stated

Year 1 Year 2 Year 3

Net Sales 71,887.0 77,649.7 79,237.7

Cost of Sales (51,164.6) (55,894.1) (57,192.0)
Gross Profit 20,722.4 21,755.6 22,045.7

Selling, General & Administrative 1

(18,300.5) (19,596.0) (19,932.9)
Other Operating Expense 15.0 147.5 (43.9)
Operating Income (EBIT) 2,436.9 2,307.1 2,068.9

Interest Expense (481.9) (404.6) (492.1)

Other Non-Operating Expense 144.5 33.0 12.2
Earnings Before Tax (EBT) 2,099.5 1,935.5 1,589.0

Income Tax (Expense) / Benefit (479.9) (422.0) (293.0)

Net Income 1,619.6 1,513.5 1,296.0

Includes Restructuring charges of 56.6, 78.3, 45.1 in Year 1, Year 2, and Year 3, respectively.
Also includes Merger-related charges of 0, 56.5, 180.6 in Year 1, Year 2, and Year 3, respectively. ⁽¹⁾

Normalizing Income Statements Page 8 of 19

 Income Statement (Adjusted)

All figures in USD millions unless stated

Year 1 Year 2 Year 3

Net Sales 71,887.0 77,649.7 79,237.7

Cost of Sales (51,164.6) (55,894.1) (57,192.0)
Gross Profit 20,722.4 21,755.6 22,045.7

Selling, General & Administrative 1

(18,243.9) (19,461.2) (19,707.2)
Other Operating Expense 15.0 147.5 (43.9)
Operating Income (EBIT) 2,493.5 2,441.9 2,294.6

Interest Expense (481.9) (404.6) (492.1)

Other Non-Operating Expense 144.5 33.0 12.2
Earnings Before Tax (EBT) 2,156.1 2,070.3 1,814.7

Income Tax (Expense) / Benefit (479.9) (422.0) (293.0) Assumes no tax adjustment at this point.

Net Income 1,676.2 1,648.3 1,521.7

Excludes Restructuring charges of 56.6, 78.3, 45.1 in Year 1, Year 2, and Year 3, respectively.
Also excludes Merger-related charges of 0, 56.5, 180.6 in Year 1, Year 2, and Year 3, respectively. ⁽¹⁾

Normalizing Income Statements Page 9 of 19

 Income Statement (Further Adjusted)

All figures in USD millions unless stated

Year 1 Year 2 Year 3

Net Sales 71,887.0 77,649.7 79,237.7

Cost of Sales (51,164.6) (55,894.1) (57,192.0)
Gross Profit 20,722.4 21,755.6 22,045.7

Selling, General & Administrative 1

(18,243.9) (19,461.2) (19,707.2)
Other Operating Expense 15.0 147.5 (43.9)
Operating Income (EBIT) 2,493.5 2,441.9 2,294.6

Interest Expense (481.9) (404.6) (492.1)

Other Non-Operating Expense 144.5 33.0 12.2
Earnings Before Tax (EBT) 2,156.1 2,070.3 1,814.7

Income Tax (Expense) / Benefit (494.0) (455.7) (349.4) Assumes tax adjustment at 25%.

Net Income 1,662.1 1,614.6 1,465.3

Excludes Restructuring charges of 56.6, 78.3, 45.1 in Year 1, Year 2, and Year 3, respectively.
Also excludes Merger-related charges of 0, 56.5, 180.6 in Year 1, Year 2, and Year 3, respectively. ⁽¹⁾

Reconciliation:
Restructuring 56.6 78.3 45.1
Merger Charges – 56.5 180.6
Total Non-Recurring 56.6 134.8 225.7
Tax Rate 25% 25% 25%
Tax Adjustment (14.2) (33.7) (56.4)
Reported Taxes (479.9) (422.0) (293.0)
Adjusted Taxes (494.0) (455.7) (349.4)

Normalizing Income Statements Page 10 of 19

 Income Statement (Reported)

All figures in USD millions unless stated

Year 1 Year 2 Year 3

Net Sales 71,887.0 77,649.7 79,237.7

Cost of Sales (51,164.6) (55,894.1) (57,192.0)
Gross Profit 20,722.4 21,755.6 22,045.7

Selling, General & Administrative 1

(18,300.5) (19,596.0) (19,932.9)
Other Operating Expense 2 15.0 147.5 (43.9)
Operating Income (EBIT) 2,436.9 2,307.1 2,068.9

Interest Expense (481.9) (404.6) (492.1)

Other Non-Operating Expense 144.5 33.0 12.2
Earnings Before Tax (EBT) 2,099.5 1,935.5 1,589.0

Income Tax (Expense) / Benefit (479.9) (422.0) (293.0)

Net Income 1,619.6 1,513.5 1,296.0

Includes Restructuring charges of 56.6, 78.3, 45.1 in Year 1, Year 2, and Year 3, respectively.
Also includes Merger-related charges of 0, 56.5, 180.6 in Year 1, Year 2, and Year 3, respectively. ⁽¹⁾
Includes other non-recurring expense of 0, 0, 16.2 in Year 1, Year 2, and Year 3, respectively. ⁽²⁾

Normalizing Income Statements Page 11 of 19

 Income Statement (Adjusted)

All figures in USD millions unless stated

Year 1 Year 2 Year 3

Net Sales 71,887.0 77,649.7 79,237.7

Cost of Sales (51,164.6) (55,894.1) (57,192.0)
Gross Profit 20,722.4 21,755.6 22,045.7

Selling, General & Administrative 1

(18,243.9) (19,461.2) (19,707.2)
Other Operating Expense 2 15.0 147.5 (27.7)
Operating Income (EBIT) 2,493.5 2,441.9 2,310.8

Interest Expense (481.9) (404.6) (492.1)

Other Non-Operating Expense 144.5 33.0 12.2
Earnings Before Tax (EBT) 2,156.1 2,070.3 1,830.9

Income Tax (Expense) / Benefit (479.9) (422.0) (293.0) Assumes no tax adjustment at this point.

Net Income 1,676.2 1,648.3 1,537.9

Excludes Restructuring charges of 56.6, 78.3, 45.1 in Year 1, Year 2, and Year 3, respectively.
Also excludes Merger-related charges of 0, 56.5, 180.6 in Year 1, Year 2, and Year 3, respectively. ⁽¹⁾
Excludes other non-recurring expense of 0, 0, 16.2 in Year 1, Year 2, and Year 3, respectively. ⁽²⁾

Normalizing Income Statements Page 12 of 19

 Income Statement (Further Adjusted)

All figures in USD millions unless stated

Year 1 Year 2 Year 3

Net Sales 71,887.0 77,649.7 79,237.7

Cost of Sales (51,164.6) (55,894.1) (57,192.0)
Gross Profit 20,722.4 21,755.6 22,045.7

Selling, General & Administrative 1

(18,243.9) (19,461.2) (19,707.2)
Other Operating Expense 2 15.0 147.5 (27.7)
Operating Income (EBIT) 2,493.5 2,441.9 2,310.8

Interest Expense (481.9) (404.6) (492.1)

Other Non-Operating Expense 144.5 33.0 12.2
Earnings Before Tax (EBT) 2,156.1 2,070.3 1,830.9

Income Tax (Expense) / Benefit (494.0) (455.7) (353.5) Assumes tax adjustment at 25%.

Net Income 1,662.1 1,614.6 1,477.4

Excludes Restructuring charges of 56.6, 78.3, 45.1 in Year 1, Year 2, and Year 3, respectively.
Also excludes Merger-related charges of 0, 56.5, 180.6 in Year 1, Year 2, and Year 3, respectively. ⁽¹⁾
Excludes other non-recurring expense of 0, 0, 16.2 in Year 1, Year 2, and Year 3, respectively. ⁽²⁾

Reconciliation:
Restructuring 56.6 78.3 45.1
Merger Charges – 56.5 180.6
Other Non-Recurring Expense – – 16.2
Total Non-Recurring Charges 56.6 134.8 241.9
Tax Rate 25% 25% 25%
Tax Adjustment (14.2) (33.7) (60.5)
Reported Taxes (479.9) (422.0) (293.0)
Adjusted Taxes (494.0) (455.7) (353.5)

Normalizing Income Statements Page 13 of 19

 Income Statement (Reported)

All figures in USD millions unless stated Fiscal Fiscal Fiscal

2021A 2022A 2023A

Net Sales 71,887.0 77,649.7 79,237.7

Cost of Sales (51,164.6) (55,894.1) (57,192.0)
Gross Profit 20,722.4 21,755.6 22,045.7

Selling, General & Administrative (18,300.5) (19,596.0) (19,932.9)

Other Operating Income / (Expense) 15.0 147.5 (43.9)
Operating Income (EBIT) 2,436.9 2,307.1 2,068.9

Interest Expense (481.9) (404.6) (492.1)

Loss on Debt Extinguishment (3.7) – –
Other Non-Operating (Expense) / Income 148.2 33.0 12.2
Earnings Before Tax (EBT) 2,099.5 1,935.5 1,589.0

Income Tax (Expense) / Benefit (479.9) (422.0) (293.0)

Net Income 1,619.6 1,513.5 1,296.0

EBIT 2,436.9 2,307.1 2,068.9

Depreciation and Amortization 1,681.3 1,807.1 1,779.0
EBITDA 4,118.2 4,114.2 3,847.9

Normalizing Income Statements Page 14 of 19

 Adjustments

All figures in USD millions unless stated

Fiscal Fiscal Fiscal
Adjustments to Net Income 2021A 2022A 2023A

Net Income (Reported) 1,619.6 1,513.5 1,296.0

Gain on Swaps and Hedges (22.8) (8.4) (3.2)
Business Transformation 56.6 78.3 45.1
Equity-based Compensation 101.2 138.3 104.5
Gain / (Loss) on Sale of Assets and Impairments (15.0) (147.5) 43.9
LIFO Adjustment 115.2 268.0 52.0
Government-mandated COVID-19 Pay 57.9 10.8 –
Merger-related Costs – 56.5 180.6
Legal and Regulatory Settlements (31.0) 100.7 (6.7)
Amortization of Debt Discount and Deferred Financing 23.2 16.8 15.5
Loss on Debt Extinguishment 3.7 – –
Amortization of Acquired Intangible Assets 48.5 50.9 48.6
Combined Plan (106.3) (19.0) –
Miscellaneous (23.8) 52.1 41.4
Tax Impacts of Adjustments (46.0) (145.9) (124.0)
Adjusted Net Income 1,781.0 1,965.1 1,693.7
Implied Tax Rate on Adjustments 22.2% 24.4% 23.8%

Fiscal Fiscal Fiscal

Adjusted EBITDA 2021A 2022A 2023A

Adjusted Net Income 1,781.0 1,965.1 1,693.7

Tax Impacts of Adjustments 46.0 145.9 124.0
Income Tax Expense (Reported) 479.9 422.0 293.0
Amortization of Debt Discount and Deferred Financing (23.2) (16.8) (15.5)
Interest Expense 481.9 404.6 492.1
Amortization of Acquired Intangible Assets (48.5) (50.9) (48.6)
Depreciation and Amortization 1,681.3 1,807.1 1,779.0
Adjusted EBITDA 4,398.4 4,677.0 4,317.7

Normalizing Income Statements Page 15 of 19

 Analysis

All figures in USD millions unless stated

Fiscal Fiscal Fiscal
Margins 2021A 2022A 2023A

Net Sales 71,887.0 77,649.7 79,237.7

Net Income (Reported) 1,619.6 1,513.5 1,296.0
Net Profit Margin (GAAP) 2.3% 1.9% 1.6%

Net Sales 71,887.0 77,649.7 79,237.7

Adjusted Net Income (Non-GAAP) 1,781.0 1,965.1 1,693.7
Adjusted Net Profit Margin (Non-GAAP) 2.5% 2.5% 2.1%

Net Sales 71,887.0 77,649.7 79,237.7

EBITDA 4,118.2 4,114.2 3,847.9
EBITDA Margin 5.7% 5.3% 4.9%

Net Sales 71,887.0 77,649.7 79,237.7

Adjusted EBITDA 4,398.4 4,677.0 4,317.7
Adjusted EBITDA Margin 6.1% 6.0% 5.4%

Leverage and Coverage Ratios 2021A 2022A 2023A

Current Debt (incl. Finance Leases) 1,075.7 285.2

Long-Term Debt (incl. Finance Leases) 7,834.4 7,783.4
Cash (455.8) (188.7)
Net Debt 1 8,454.3 7,879.9
EBITDA 4,114.2 3,847.9
Leverage Ratio 2.1x 2.0x

Net Debt 8,454.3 7,879.9

Adjusted EBITDA 4,677.0 4,317.7
Leverage Ratio 1.8x 1.8x

EBITDA 4,118.2 4,114.2 3,847.9

Interest Expense (as Reported) 481.9 404.6 492.1
Coverage Ratio 8.5x 10.2x 7.8x

Adjusted EBITDA 4,398.4 4,677.0 4,317.7

Interest Expense (as Reported) 481.9 404.6 492.1
Coverage Ratio 9.1x 11.6x 8.8x

In this example, net debt is simply defined as current long-term debt (incl finance leases) and long-term debt (incl finance leases)
less cash and cash equivalents. ⁽¹⁾

Normalizing Income Statements Page 16 of 19

 Income Statement

All figures in GBP millions unless stated FYE 1

FYE 1

2023A 2024A
Before Adjusting IFRS Before Adjusting IFRS
Adjustments Items ReportedAdjustments Items Reported

Revenue from sale of goods and services 64,864.0 64,864.0 67,673.0 67,673.0
Insurance revenue 458.0 458.0 514.0 514.0
Total Revenue 65,322.0 – 65,322.0 68,187.0 – 68,187.0

Cost of sales (60,487.0) (1,029.0) (61,516.0) (62,832.0) (4.0) (62,836.0)

Insurance service expense (incl reinsurance costs held) (445.0) (445.0) (502.0) (502.0)
Gross Profit 4,390.0 (1,029.0) 3,361.0 4,853.0 (4.0) 4,849.0

Administrative expenses (1,881.0) (70.0) (1,951.0) (2,024.0) (4.0) (2,028.0)

Operating Income (EBIT) 2,509.0 (1,099.0) 1,410.0 2,829.0 (8.0) 2,821.0

Share of post-tax profits of JVs and associates 8.0 8.0 6.0 6.0
Finance income 87.0 87.0 267.0 267.0
Finance costs (650.0) 27 (623.0) (825.0) 20 (805.0)
Profit Before Tax from Continuing Operations 1,954.0 (1,072.0) 882.0 2,277.0 12.0 2,289.0

Taxation (419.0) 195.0 (224.0) (593.0) 68.0 (525.0)

Profit / (Loss) from Continuing Operations 1,535.0 (877.0) 658.0 1,684.0 80.0 1,764.0

Profit / (Loss) from Discontinued Operations 91.0 (13.0) 78.0 56.0 (628.0) (572.0)

Consolidated Profit / (Loss) 1,626.0 (890.0) 736.0 1,740.0 (548.0) 1,192.0

Attributable to Noncontrolling interest (1.0) (1.0) 4.0 – 4.0

Attributable to Tesco 1,627.0 (890.0) 737.0 1,736.0 (548.0) 1,188.0

EBIT (from Continuing Operations) 2,509.0 (1,099.0) 1,410.0 2,829.0 (8.0) 2,821.0
Depreciation and Amortization (from Continuing Operations) 1,589.0 76.0 1,665.0 1,619.0 75.0 1,694.0
EBITDA (from Continuing Operations) 4,098.0 (1,023.0) 3,075.0 4,448.0 67.0 4,515.0

FYE is a common abbreviation for Fiscal-Year Ending. ⁽¹⁾

Normalizing Income Statements Page 17 of 19

 Adjustments

Cost Admin Total adj Finance Adj. within Total

2024A Adjustments Detail of sales expenses within EBIT inc. / (cost) Taxation disc. op. Adj.
Property transactions 6.0 69.0 75.0 – (18.0) – 57.0
Disposal of China associate – 9.0 9.0 – 23.0 – 32.0
Net impairment (loss) / reversal 35.0 (7.0) 28.0 – 38.0 – 66.0
Restructuring (45.0) (5.0) (50.0) – 12.0 – (38.0)
Amortization of acquired intangible assets – (74.0) (74.0) – 18.0 – (56.0)
Disposal of subsidiary – 12.0 12.0 – – – 12.0
Banking operations disposal cost – (8.0) (8.0) – – – (8.0)
Net pension finance income / (cost) – – – (18.0) 5.0 – (13.0)
Fair value remeasurement of financial instruments – – – 38.0 (10.0) – 28.0
Total adjustments from continuing operations (4.0) (4.0) (8.0) 20.0 68.0 – 80.0

Total adjustments from discontinued operations – – – – – (628.0) (628.0)

Total adjusting items (4.0) (4.0) (8.0) 20.0 68.0 (628.0) (548.0)

Cost Admin Total adj Finance Adj. within Total

2023A Adjustments Detail of sales expenses within EBIT inc. / (cost) Taxation disc. op. Adj.
Property transactions 36.0 55.0 91.0 – 29.0 – 120.0
Net impairment (loss) / reversal (965.0) (17.0) (982.0) – 129.0 – (853.0)
Fair value less disposal cost on assets held for sale – (14.0) (14.0) – 1.0 – (13.0)
Restructuring (107.0) (25.0) (132.0) – 26.0 – (106.0)
Disposal of Asia operations – 2.0 2.0 – – – 2.0
ATM business rates refund 7.0 – 7.0 – (1.0) – 6.0
Release of onerous contract provision – 5.0 5.0 – – – 5.0
Amortization of acquired intangible assets – (76.0) (76.0) – 14.0 – (62.0)
Net pension finance income / (cost) – – – 80.0 (15.0) – 65.0
Fair value remeasurement of financial instruments – – – (53.0) 12.0 – (41.0)
Total adjustments from continuing operations (1,029.0) (70.0) (1,099.0) 27.0 195.0 – (877.0)

Total adjustments from discontinued operations – – – – – (13.0) (13.0)

Total adjusting items (1,029.0) (70.0) (1,099.0) 27.0 195.0 (13.0) (890.0)

Normalizing Income Statements Page 18 of 19

 Analysis

Margins 2023A 2024A

Revenue 64,864.0 67,673.0

Profit / (Loss) from Continuing Operations (Reported) 658.0 1,764.0
Profit / (Loss) from Cont. Ops Margin (Reported) 1.0% 2.6%

Revenue 64,864.0 67,673.0

Profit / (Loss) from Continuing Operations (Adjusted) 1,535.0 1,684.0
Profit / (Loss) from Cont. Ops Margin (Adjusted) 2.4% 2.5%

Revenue 64,864.0 67,673.0

EBITDA (from Continuing Operations) 3,075.0 4,515.0
EBITDA (from Continuing Operations) Margin 4.7% 6.7%

Revenue 64,864.0 67,673.0

Adjusted EBITDA (from Continuing Operations) 4,098.0 4,448.0
Adjusted EBITDA Margin 6.3% 6.6%

Leverage and Coverage Ratios 2023A 2024A

Current Borrowings 1,770.0 1,536.0

Long-Term Borrowings 5,581.0 5,683.0
Cash (2,465.0) (2,340.0)
Net Debt 1 4,886.0 4,879.0
EBITDA (from Continuing Operations) 3,075.0 4,515.0
Leverage Ratio 1.6x 1.1x

Net Debt 4,886.0 4,879.0

Adjusted EBITDA (from Continuing Operations) 4,098.0 4,448.0
Leverage Ratio 1.2x 1.1x

EBITDA (from Continuing Operations) 3,075.0 4,515.0

Finance Costs (as Reported) 623.0 805.0
Coverage Ratio 4.9x 5.6x

Adjusted EBITDA (from Continuing Operations) 4,098.0 4,448.0

Finance Costs (Adjusted) 650.0 825.0
Coverage Ratio 6.3x 5.4x

In this example, net debt is simply defined as current and non-current borrowings less cash and cash equivalents. ⁽¹⁾

Normalizing Income Statements Page 19 of 19