IFRS presentation to analysts and investors - About United Utilities

IFRS headlines – summary impactFull Year 2004/05IFRSUK GAAPMovementOperating profit£676m 1£692m 2(2%)Profit before tax£395m 1£408m 2(3%)Adjusted Basic EPS59.5p 361.4p 4(3%)Basic EPS36.5p46.8p(22%)As at 31 March 2005Net assets£2,144m£3,119m(31%)Net debt£4,279m£4,141m3%United Utilities PLC ParentCompany DistributableReserves£1,182m£1,194m(1%)1before intangibles previously classified as goodwill under UK GAAP and restructuring costs2 before goodwill and exceptional items3 before deferred tax and intangibles previously classified as goodwill under UK GAAP and restructuring costs4before deferred tax and goodwill and exceptional items8This slide shows the effect of IFRS on some of our key financial measures.The impact on operating profit and profit before tax is just 2 per cent and 3 percent, respectively.Earnings per share, on a pre-deferred tax basis, moves by around 3 per cent. Themovement in basic earnings per share is primarily attributable to the non-cashdeferred tax adjustment.Our net assets are affected by the requirement to make full provision for deferredtax, under IAS 12, and the recognition of pension scheme deficits under IAS 19.Net debt increases by £138 million due to the proportional consolidation of jointventure debt, which is typically non-recourse to the group. However, thedistributable reserves of United Utilities PLC parent company, from whichdividend payments are made, are largely unaffected.Martin will say more about the impacts of IAS 12 and IAS 19 later in thepresentation.