Reconciliation of Tesco Bank Income Statement from Tesco PLC ...

Reconciliation of Tesco Bank Income Statement from Tesco PLC Broker Pack to Tesco Personal Finance PLC Preliminary Results
Tesco Bank Income Statement 12 months ended 29 February 2012
Statutory Adjustments and
Reclassifications 2
Tesco PLC Broker Pack
Group Reporting
Adjustments
Tesco Personal Finance PLC
Preliminary Results
£m £m £m £m
Revenue
Interest receivable and similar income 438 (18) 6 426
Fees and commissions receivable 606 (4) (84) 518
1,044 (22) (78) 944
1
Direct costs
Interest payable (157) - (10) (167)
Fees and commissions payable (80) - - (80)
(237) - (10) (247)
Other income - - 5 5
Gross profit 807 (22) (83) 702
Other expenses: -
Staff costs (118) - 1 (117)
Premises and equipment (66) - (2) (68)
Other administrative expenses (285) 26 67 (192)
Depreciation and amortisation (45) - - (45)
(excluding amortisation of intangibles arising on acquisition) (514) 26 66 (422)
Trading profit before provisions for bad and doubtful debts 293 4 (17) 280
Provisions for bad and doubtful debts (125) - - (125)
Share of loss of joint ventures and associates - - 5 5
Trading profit 168 4 (12) 160
Deduct: Tesco Bank intangibles (15) 15 - -
Deduct: IAS 17 Leasing charge (2) - 2 -
Deduct: Management charges (1) - 1 -
Net finance costs (5) - 5 -
Share of profit/(loss) of joint ventures and associates 5 - (5) -
Restructuring and other one-off costs (10) - 10 -
Profit before tax 140 19 1 160
1 Comprising fair value release (£22m), ATM commission (£26m) and amortisation of acquisition intangible (£15m) .
2 Comprising statutory adjustments and reclassifications including IFRIC 13 (£65m) and legal entity structure (Tesco Compare).

Reconciliation of Tesco Bank Balance Sheet from Tesco PLC Broker Pack to Tesco Personal Finance PLC Preliminary Results
Tesco Bank Balance Sheet as at 29 February 2012
Group Reporting
Adjustments ¹
Statutory Adjustments and
Reclassifications
Non-current assets
£m £m £m £m
Intangible assets 383 (45) (1) 337
Property, plant and equipment 110 - - 110
Investments in joint ventures and associates 72 - - 72
Other investments 1,526 - 70 2,3
1,596
Loans and advances to customers 1,901 9 - 1,910
Derivative financial instruments 18 - - 18
Current assets
4,010 (36) 69 4,043
Loans and advances to customers 2,502 12 - 2,514
Loans and advances to banks - - 93 2
93
Trade and other receivables 537 - (39) 2,3
498
Derivative financial instruments 1 - - 1
Cash and cash equivalents 580 - (124) 2,5,6
Tesco PLC Broker Pack
Tesco Personal Finance PLC
Preliminary Results
456
3,620 12 (70) 3,562
Current liabilities
Trade and other payables (242) 28 (27) 4,5,6
(241)
Financial liabilities - -
- Borrowings - - - -
- Derivative financial instruments (8) - - (8)
Deposits by banks (78) - - (78)
Provisions (78) - - (78)
Customer deposits (5,087) - (3) 6
(5,090)
(5,493) 28 (30) (5,495)
Net current liabilities (1,873) 40 (100) (1,933)
Non-current liabilities
Financial liabilities
- Borrowings (198) - (330) 4
(528)
- Derivative financial instruments (63) - - (63)
Deferred tax liabilities (38) 6 3 (29)
Customer Deposits (300) - - (300)
Net assets 1,538 10 (358) 1,190
1 Comprising acquisition intangible (£45m), fair value provision (£21m), ATM commission (£26m), other payables (£2m) and deferred tax (£6m)
2 Cash and cash equivalents (£123m) are reported within other investments (£35m), loans and advances to banks (£93m), and other receivables (£(5m)) in the Tesco Personal Finance PLC Preliminary Results
3 Loan to associate (£34m) is reported within investment securities in the Tesco Personal Finance PLC Preliminary Results
4 Within the Tesco PLC Broker Pack the Tesco Bank balance sheet is presented excluding intra-group liabilities - other payables (£25m) and borrowings (£330m).
5 Arises as a result of Tesco Compare not being consolidated as part of the Tesco Personal Finance PLC Preliminary Results
6 Arises as a result of consolidation adjustments for the Tesco Personal Finance Group, not included as part of Tesco Personal Finance PLC Preliminary Results

Reconciliation of Tesco Bank Cashflow Statement from Tesco PLC Broker Pack to Tesco Personal Finance PLC Preliminary Results
Tesco Bank Cashflow Statement 12 months ended 29 February 2012
Tesco PLC Broker Pack
Group Reporting
Adjustments 1
£m £m £m £m
Profit before tax 140 19 1 160
ATM commission 26 (26) - -
Net finance costs 5 - (1) 4
Share of post-tax profits of joint ventures and associates (5) - - (5)
Operating profit 166 (7) - 159
Depreciation and amortisation 60 (15) - 45
Profit arising on sale of other investments (5) - - (5)
Share-based payments 2 - 5 7
Tesco Bank non-cash items included in profit before tax 166 22 5 193
Cashflow from operations excluding working capital 389 - 10 399
Decrease in working capital 241 - (11) 230
Cash generated from operations 630 - (1) 629
Interest paid (4) - 4 -
Corporation tax paid (18) - - (18)
Net cash generated from operating activities 608 - 3 611
Purchase of property, plant and equipment, and intangible assets (166) - - (166)
Net proceeds from sale of / (investments in) short-term investments (546) - - (546)
Net cash used in investing activities (712) - - (712)
Proceeds from issue of ordinary share capital 112 - - 112
Dividends paid to equity owners (100) - (9) (109)
Net repayment of borrowings (34) - 9 (25)
Interest paid - - (4) (4)
Net cash used in financing activities (22) - (4) (26)
Net decrease in cash and cash equivalents (126) - (1) (127)
Cash and cash equivalents at the beginning of the period 706 - - 706
Cash and cash equivalents at the end of the period 580 - (1) 579
1 Comprising ATM commission (£26m), amortisation of acquisition intangible (£15m) and fair value release (£22m).
Statutory Adjustments and
Reclassifications 2
Tesco Personal Finance PLC
Preliminary Results
2 Comprising statutory adjustments and reclassifications including cashflow presentational differences such as share based payment, interest paid and further detail on balance sheet movements and legal entity structure (Tesco Compare).