Ardagh Glass Finance plc - Irish Stock Exchange

Audited Pro forma
Year ended
December 31,
2008 2007
(in E millions)
Other data
Gross margin (1) .................................................. 13.2% 13.6%
EBITDA (2) ..................................................... 262.1 232.5
EBITDA margin (2) ................................................ 19.3% 17.3%
Depreciation (3) ................................................... 157.0 126.0
(1) Gross margin is calculated as gross profit divided by Group revenues.
(2) 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.
The reconciliation of operating profit to EBITDA is as follows:
Audited Pro forma
Year ended
December 31,
2008 2007
(in E millions)
Group operating profit/(loss) ..................................... 80.2 94.6
Add back depreciation and amortization ............................. 157.0 126.0
Add back other income and expenses ............................... 24.9 11.9
EBITDA ................................................... 262.1 232.5
(3) Depreciation less capital grant amortization.
Revenue
Group revenue increased by A16.6 million, or 1.2%, to A1,357.2 million in the year ended
December 31, 2008 from A1,340.6 million in the year ended December 31, 2007. Excluding the foreign
exchange effects, group revenue increased by 4.3%.
Eurozone. Eurozone revenue in 2008 was A732.8 million compared to A671.6 million in 2007, an
increase of A61.2 million or 9.1%. Within this segment, the Glass Technology business generated
revenue of A42.9 million, a decrease of A12.3 million, or 22.3%, compared to A55.2 million for the same
period in 2007. This reduction was due to reduced volumes on major technology projects. The glass
container business generated revenue of A689.9 million, an increase of A73.5 million or 11.9% over the
same period in 2007. The glass container business recorded volume and sales mix improvements of
A 6.9 million in 2008, or 1.1%, compared to 2007 revenues, while sales price increases accounted for
A66.6 million or 10.8%, of the year-on-year movement in this segment.
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