Ardagh Glass Finance plc - Irish Stock Exchange

** Includes other income and expense for the period indicated.
*** IFRS non-cash stock adjustment—This adjustment arose as a result of the fair value exercise carried out in
accordance with IFRS 3 Business Combinations. This adjustment had the effect of writing up the value of the
inventory of the acquired glass division of Rexam plc, such that there was no profit element recognized when this
inventory was subsequently sold to customers post acquisition. The full stock uplift was released in the third quarter
of 2007 as all acquired inventory was sold in this period.
**** Net finance expense for the nine months ended September 30, 2009 includes an expense of A5.3 million. Due to the
partial prepayment of the Amended and Restated Anglo Irish Senior Secured Credit Facility, a portion of the
Group’s interest rate swaps were no longer classified as hedging instruments. IFRS requires that any previous
cumulative mark-to-market adjustments to the fair value of this derivative be removed from equity and charged
directly to the income statement with no net impact on shareholder funds.
(1) Working capital is made up of inventories, trade receivables, other receivables, prepayments, trade payables, other
tax and social security payable and recoverable, other payables and accruals (excluding interest payable), pallet
deposits, customer deposits and amounts owed to joint venture.
(2) Total borrowings includes all bank borrowings as well as vendor loan notes, subordinated loan notes and deferred
consideration loan notes.
(3) Gross margin is calculated as gross profit excluding other income and expense divided by Group revenues.
The reconciliation of gross profit is as follows:
Audited Consolidated Unaudited Consolidated
Nine months
Year ended
ended
Twelve months
December 31, September 30,
ended
September 30,
2008 2007* 2006 2009 2008 2009
(in E millions)
Gross profit ................................ 178.8 123.6 27.4 107.2 141.1 144.9
Add back IFRS non-cash stock adjustment ............ — 13.8 — — — —
Add back other income and expense ................ — — — 2.1 — 2.1
Gross profit excluding other items .................. 178.8 137.4 27.4 109.3 141.1 147.0
* The historical financial data for the year 2007 reflect the effects of the Rexam Acquisition only from June 21,
2007.
(4) EBITDA is operating profit before depreciation, amortization, other income and expenses and non-cash items.
EBITDA margin is calculated as EBITDA divided by Group revenues. EBITDA and EBITDA margin are presented
because we believe that they are frequently used by securities analysts, investors and other interested parties in
evaluating companies in the glass container industry. However, other companies may calculate EBITDA and
EBITDA margin in a different manner than we do. EBITDA and EBITDA margin are not measurements of
financial performance under IFRS and should not be considered an alternative to cash flow from operating activities
or as a measure of liquidity or an alternative to profit/(loss) on ordinary activities as indicators of operating
performance or any other measures of performance derived in accordance with IFRS.
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