UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION
The unaudited pro forma condensed consolidated financial information in this exhibit presents the financial performance of the RGHL Group, as if Reynolds Consumer Products had been a discontinued operation for each of the three years ended December 31, 2019, 2018 and 2017. This unaudited pro forma condensed consolidated information also reflects the presentation of the reduction in interest expense on borrowings that have been repaid with (i) proceeds from the sale of the RGHL Group's previous closures operations in North America, Costa Rica and Japan, (ii) proceeds associated with the distribution and IPO of Reynolds Consumer Products and (iii) cash on-hand. The unaudited pro forma condensed consolidated financial information also illustrates the changes to the RGHL Group’s statement of financial position, as if the distribution of Reynolds Consumer Products, the Reynolds Consumer IPO and the related application of proceeds and repayment in borrowings described above had all occurred as of December 31, 2019.
The unaudited pro forma condensed consolidated financial information reflects certain assumptions and adjustments that management believes are reasonable under the circumstances and given the information available at this time. The unaudited pro forma condensed consolidated financial information reflects adjustments that, in the opinion of management, are necessary to present fairly the unaudited pro forma condensed consolidated financial information for the years ended December 31, 2019, 2018 and 2017, and as of December 31, 2019.
The information related to Reynolds Consumer Products presented in this exhibit differs from the historical segment presentation in the RGHL Group’s consolidated financial statements. These differences include the change in classification of sales from Pactiv Foodservice to Reynolds Consumer Products from inter-segment to external and the presentation of certain corporate overhead and other costs. Certain costs previously reported by Reynolds Consumer Products in the RGHL Group segment presentation have been excluded from the presentation of discontinued operations as such costs will continue to be incurred by the RGHL Group following the distribution of Reynolds Consumer Products. Other RGHL Group costs, such as a portion of the previously unallocated related party management fee, have been allocated to discontinued operations as these costs will not be incurred by the RGHL Group following the distribution of Reynolds Consumer Products. The information presented in this exhibit does not reflect any income that the RGHL Group will earn in respect of services that are expected to be provided to Reynolds Consumer Products under the transition services arrangement.
The unaudited pro forma condensed consolidated financial information does not, and is not intended to, comply with the requirements of pro forma financial information prepared in accordance with Article 11 of Regulation S-X. The unaudited pro forma condensed consolidated financial information has been provided for informational purposes only and does not purport to project the future financial position or operating results that the RGHL Group would have reported had the pro forma transactions been completed as of the dates set forth in this unaudited pro forma condensed consolidated financial information and is not necessarily indicative of the future consolidated results of operations or financial position. The actual results may differ significantly from those reflected in the unaudited pro forma condensed consolidated financial information for a number of reasons, including, but not limited to, differences between the assumptions used to prepare the unaudited pro forma condensed consolidated financial information and actual amounts.
The information presented in the Reynolds Consumer Products and Change in Cash and Borrowings columns in the unaudited pro forma condensed consolidated financial information was derived from the RGHL Group’s accounting records for the years ended December 31, 2019, 2018 and 2017 and reflects pro forma adjustments which are described in the accompanying notes.
The unaudited pro forma condensed consolidated financial information, including the notes thereto, should be read in conjunction with the RGHL Group’s audited consolidated financial statements and notes thereto included in its Annual Report on Form 20-F for the fiscal year ended December 31, 2019 which has been filed with the SEC.
Unaudited Pro Forma Summarized Financial Performance
For the Year Ended December 31, 2019
|
| | | | | | | | | | | | | | | | |
| (In $ million) | | As Reported (a) | | Reynolds Consumer Products | | Note | | Change in Cash and Borrowings | | Note | | As Adjusted |
| External revenue | | 9,716 |
| | (2,439 | ) | | (b) | | — |
| | | | 7,277 |
|
| | | | | | | | | | | | | |
| Gross profit | | 1,981 |
| | (872 | ) | | (c) | | — |
| | | | 1,109 |
|
| | | | | | | | | | | | | |
| Profit from operating activities | | 823 |
| | (551 | ) | | (c) | | — |
| | | | 272 |
|
| Financial income | | 145 |
| | — |
| | | | 11 |
| | (d) | | 156 |
|
| Financial expenses | | (651 | ) | | 3 |
| | (c) | | 207 |
| | (d) | | (441 | ) |
| Profit (loss) from continuing operations before income tax | | 317 |
| | (548 | ) | | (c) | | 218 |
| | | | (13 | ) |
| Income tax (expense) benefit | | (134 | ) | | 132 |
| | (e) | | — |
| | (e) | | (2 | ) |
| Profit (loss) from continuing operations | | 183 |
| | (416 | ) | | | | 218 |
| | | | (15 | ) |
| | | | | | | | | | | | | |
| Profit from operating activities | | 823 |
| | (551 | ) | | (c) | | — |
| | | | 272 |
|
| Depreciation and amortization | | 698 |
| | (106 | ) | | (c) | | — |
| | | | 592 |
|
| Earnings before interest, tax, depreciation and amortization (“EBITDA”) from continuing operations | | 1,521 |
| | (657 | ) | | (c) | | — |
| | | | 864 |
|
| Included in EBITDA: | | | | | | | | | | | | |
| Asset impairment charges, net of reversals | | 101 |
| | — |
| | | | — |
| | | | 101 |
|
| (Gain) loss on sale or disposal of businesses and non-current assets | | 30 |
| | — |
| | | | — |
| | | | 30 |
|
| Non-cash pension expense, net of settlement gain | | 58 |
| | — |
| | | | — |
| | | | 58 |
|
| Operational process engineering-related consultancy costs | | 29 |
| | (2 | ) | | (c) | | — |
| | | | 27 |
|
| Related party management fee | | 27 |
| | (10 | ) | | (c) | | — |
| | | | 17 |
|
| Restructuring costs, net of reversals | | 21 |
| | — |
| | | | — |
| | | | 21 |
|
| Strategic review costs | | 40 |
| | (36 | ) | | (c) | | — |
| | | | 4 |
|
| Unrealized (gain) loss on derivatives | | (13 | ) | | 9 |
| | (c) | | — |
| | | | (4 | ) |
| Other | | 11 |
| | — |
| | | | — |
| | | | 11 |
|
| Adjusted EBITDA from continuing operations | | 1,825 |
| | (696 | ) | | (c) | | — |
| | | | 1,129 |
|
See the accompanying notes to the unaudited pro forma summarized financial performance.
Unaudited Pro Forma Summarized Financial Performance
For the Year Ended December 31, 2018
|
| | | | | | | | | | | | | | | | |
| (In $ million) | | As Reported (a) | | Reynolds Consumer Products | | Note | | Change in Cash and Borrowings | | Note | | As Adjusted |
| External revenue | | 10,059 |
| | (2,469 | ) | | (b) | | — |
| | | | 7,590 |
|
| | | | | | | | | | | | | |
| Gross profit | | 1,973 |
| | (852 | ) | | (c) | | — |
| | | | 1,121 |
|
| | | | | | | | | | | | | |
| Profit from operating activities | | 797 |
| | (560 | ) | | (c) | | — |
| | | | 237 |
|
| Financial income | | 41 |
| | — |
| | | | — |
| | | | 41 |
|
| Financial expenses | | (865 | ) | | — |
| | | | 318 |
| | (d) | | (547 | ) |
| Profit (loss) from continuing operations before income tax | | (27 | ) | | (560 | ) | | (c) | | 318 |
| | | | (269 | ) |
| Income tax (expense) benefit | | (2 | ) | | 129 |
| | (e) | | — |
| | (e) | | 127 |
|
| Profit (loss) from continuing operations | | (29 | ) | | (431 | ) | | | | 318 |
| | | | (142 | ) |
| | | | | | | | | | | | | |
| Profit from operating activities | | 797 |
| | (560 | ) | | (c) | | — |
| | | | 237 |
|
| Depreciation and amortization | | 615 |
| | (90 | ) | | (c) | | — |
| | | | 525 |
|
| Earnings before interest, tax, depreciation and amortization (“EBITDA”) from continuing operations | | 1,412 |
| | (650 | ) | | (c) | | — |
| | | | 762 |
|
| Included in EBITDA: | | | | | | | | | | | | |
| Asset impairment charges, net of reversals | | 240 |
| | — |
| | | | — |
| | | | 240 |
|
| (Gain) loss on sale or disposal of businesses and non-current assets | | (8 | ) | | — |
| | | | — |
| | | | (8 | ) |
| Non-cash pension expense | | 56 |
| | — |
| | | | — |
| | | | 56 |
|
| Operational process engineering-related consultancy costs | | 14 |
| | — |
| | | | — |
| | | | 14 |
|
| Related party management fee | | 27 |
| | (10 | ) | | (c) | | — |
| | | | 17 |
|
| Restructuring costs, net of reversals | | 14 |
| | — |
| | | | — |
| | | | 14 |
|
| Unrealized (gain) loss on derivatives | | 22 |
| | (14 | ) | | (c) | | — |
| | | | 8 |
|
| Other | | (6 | ) | | 5 |
| | (c) | | — |
| | | | (1 | ) |
| Adjusted EBITDA from continuing operations | | 1,771 |
| | (669 | ) | | (c) | | — |
| | | | 1,102 |
|
See the accompanying notes to the unaudited pro forma summarized financial performance.
Unaudited Pro Forma Summarized Financial Performance
For the Year Ended December 31, 2017
|
| | | | | | | | | | | | | | | | |
| (In $ million) | | As Reported (a) | | Reynolds Consumer Products | | Note | | Change in Cash and Borrowings | | Note | | As Adjusted |
| External revenue | | 9,945 |
| | (2,315 | ) | | (b) | | — |
| | | | 7,630 |
|
| | | | | | | | | | | | | |
| Gross profit | | 2,205 |
| | (856 | ) | | (c) | | — |
| | | | 1,349 |
|
| | | | | | | | | | | | | |
| Profit from operating activities | | 1,176 |
| | (570 | ) | | (c) | | — |
| | | | 606 |
|
| Financial income | | 49 |
| | — |
| | | | (13 | ) | | (d) | | 36 |
|
| Financial expenses | | (739 | ) | | — |
| | | | 215 |
| | (d) | | (524 | ) |
| Profit from continuing operations before income tax | | 486 |
| | (570 | ) | | (c) | | 202 |
| | | | 118 |
|
| Income tax (expense) benefit | | (65 | ) | | 63 |
| | (e) | | — |
| | (e) | | (2 | ) |
| Profit from continuing operations | | 421 |
| | (507 | ) | | | | 202 |
| | | | 116 |
|
| | | | | | | | | | | | | |
| Profit from operating activities | | 1,176 |
| | (570 | ) | | (c) | | — |
| | | | 606 |
|
| Depreciation and amortization | | 628 |
| | (93 | ) | | (c) | | — |
| | | | 535 |
|
| Earnings before interest, tax, depreciation and amortization (“EBITDA”) from continuing operations | | 1,804 |
| | (663 | ) | | (c) | | — |
| | | | 1,141 |
|
| Included in EBITDA: | | | | | | | | | | | | |
| Asset impairment charges, net of reversals | | 44 |
| | — |
| | | | — |
| | | | 44 |
|
| Non-cash pension expense, net of settlement gain | | 58 |
| | — |
| | | | — |
| | | | 58 |
|
| Operational process engineering-related consultancy costs | | 15 |
| | (3 | ) | | (c) | | — |
| | | | 12 |
|
| Related party management fee | | 29 |
| | (10 | ) | | (c) | | — |
| | | | 19 |
|
| Restructuring costs, net of reversals | | 21 |
| | (5 | ) | | (c) | | — |
| | | | 16 |
|
| Unrealized (gain) loss on derivatives | | (1 | ) | | 4 |
| | (c) | | — |
| | | | 3 |
|
| Other | | 11 |
| | — |
| | | | — |
| | | | 11 |
|
| Adjusted EBITDA from continuing operations | | 1,981 |
| | (677 | ) | | (c) | | — |
| | | | 1,304 |
|
See the accompanying notes to the unaudited pro forma summarized financial performance.
Unaudited Pro Forma Condensed Consolidated Statement of Financial Position as of December 31, 2019
|
| | | | | | | | | | | | | | |
| (In $ million) | | As Reported (a) | | Reynolds Consumer Products (f) | | Change in Cash and Borrowings | | Note | | As Adjusted |
| Assets | | | | | | | | | | |
| Cash and cash equivalents | | 1,291 |
| | (31 | ) | | 381 |
| | (g) | | 1,641 |
|
| Trade and other receivables, net | | 993 |
| | (276 | ) | | — |
| | | | 717 |
|
| Inventories | | 1,312 |
| | (418 | ) | | — |
| | | | 894 |
|
| Current tax assets | | 9 |
| | (1 | ) | | — |
| | | | 8 |
|
| Assets held for sale | | 11 |
| | — |
| | — |
| | | | 11 |
|
| Derivatives | | 6 |
| | — |
| | — |
| | | | 6 |
|
| Other assets | | 93 |
| | (10 | ) | | — |
| | | | 83 |
|
| Total current assets | | 3,715 |
| | (736 | ) | | 381 |
| | | | 3,360 |
|
| Related party and other non-current receivables | | 415 |
| | — |
| | — |
| | | | 415 |
|
| Investments in associates and joint ventures | | 24 |
| | — |
| | — |
| | | | 24 |
|
| Deferred tax assets | | 27 |
| | — |
| | — |
| | | | 27 |
|
| Property, plant and equipment | | 3,277 |
| | (569 | ) | | — |
| | | | 2,708 |
|
| Intangible assets | | 8,561 |
| | (3,046 | ) | | — |
| | | | 5,515 |
|
| Derivatives | | 151 |
| | — |
| | — |
| | | | 151 |
|
| Other assets | | 87 |
| | (9 | ) | | — |
| | | | 78 |
|
| Total non-current assets | | 12,542 |
| | (3,624 | ) | | — |
| | | | 8,918 |
|
| Total assets | | 16,257 |
| | (4,360 | ) | | 381 |
| | | | 12,278 |
|
| Liabilities | | | | | | | | | | |
| Trade and other payables | | 975 |
| | (200 | ) | | (55 | ) | | (h) | | 720 |
|
| Borrowings | | 3,587 |
| | — |
| | (3,157 | ) | | (h) | | 430 |
|
| Lease liabilities | | 81 |
| | (9 | ) | | — |
| | | | 72 |
|
| Current tax liabilities | | 30 |
| | — |
| | — |
| | | | 30 |
|
| Derivatives | | 5 |
| | — |
| | — |
| | | | 5 |
|
| Employee benefits | | 187 |
| | (44 | ) | | — |
| | | | 143 |
|
| Provisions | | 42 |
| | (3 | ) | | — |
| | | | 39 |
|
| Total current liabilities | | 4,907 |
| | (256 | ) | | (3,212 | ) | | | | 1,439 |
|
| Non-current payables | | 36 |
| | — |
| | — |
| | | | 36 |
|
| Borrowings | | 7,053 |
| | — |
| | (20 | ) | | (h) | | 7,033 |
|
| Lease liabilities | | 295 |
| | (35 | ) | | — |
| | | | 260 |
|
| Deferred tax liabilities | | 1,025 |
| | (326 | ) | | — |
| | | | 699 |
|
| Employee benefits | | 895 |
| | (61 | ) | | — |
| | | | 834 |
|
| Provisions | | 69 |
| | (9 | ) | | — |
| | | | 60 |
|
| Total non-current liabilities | | 9,373 |
| | (431 | ) | | (20 | ) | | | | 8,922 |
|
| Total liabilities | | 14,280 |
| | (687 | ) | | (3,232 | ) | | | | 10,361 |
|
| Net assets | | 1,977 |
| | (3,673 | ) | | 3,613 |
| | | | 1,917 |
|
| Equity | | | | | | | | | | |
| Equity attributable to equity holder of the Group | | 1,974 |
| | (3,673 | ) | | 3,613 |
| | | | 1,914 |
|
| Non-controlling interests | | 3 |
| | — |
| | — |
| | | | 3 |
|
| Total equity | | 1,977 |
| | (3,673 | ) | | 3,613 |
| | | | 1,917 |
|
See the accompanying notes to the unaudited pro forma condensed consolidated statement of financial position.
NOTES TO THE UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION
| |
| (a) | “As Reported” represents amounts presented in the RGHL Group's consolidated financial statements as of and for the year ended December 31, 2019. |
| |
| (b) | This pro forma adjustment reflects the net impact of (i) the elimination of the external revenues reported by Reynolds Consumer Products of $2,881 million, $2,980 million and $2,807 million for the three years ended December 31, 2019, 2018 and 2017, respectively, and (ii) the reinstatement of previously eliminated intersegment revenues of $442 million, $511 million and $492 million for the three years ended December 31, 2019, 2018 and 2017, respectively, for sales by other segments of the RGHL Group to Reynolds Consumer Products. |
| |
| (c) | These pro forma adjustments reflect the elimination of the costs of Reynolds Consumer Products. These adjustments include certain costs incurred by the RGHL Group that are attributable to the revenue-producing activities of the discontinued operation and are not expected to continue being incurred by the RGHL Group after the distribution date, including transaction costs incurred by the RGHL Group in relation to the distribution of Reynolds Consumer Products. These adjustments do not reflect the allocation of any general corporate overhead costs to the Reynolds Consumer Products business. These amounts include a portion of the historical related party management fee attributable to the Reynolds Consumer Products business that will no longer be incurred by the RGHL Group. |
| |
| (d) | This pro forma adjustment reflects the elimination of financial expenses, net, associated with the repayment of certain borrowings, as described below. Other in the tables below represents the amortization of transaction costs and embedded derivatives. For the years ended December 31, 2019 and 2017, the change in fair value of embedded derivatives is an adjustment to financial income. |
The adjustment for the year ended December 31, 2019 comprises: |
| | | | | | | | | |
| | | Adjustment to financial expenses, net |
| (In $ million) | | Interest expense | Change in fair value of embedded derivatives | Other | Total |
| 6.875% Senior Secured Notes (i) | | 21 |
| 4 |
| — |
| 25 |
|
| Securitization Facility (ii) | | 1 |
| — |
| — |
| 1 |
|
| Credit Agreement (iii) | | 1 |
| — |
| — |
| 1 |
|
| Floating Rate Senior Secured Notes and 5.125% Senior Secured Notes (iv) | | — |
| — |
| — |
| — |
|
| 5.750% Senior Secured Notes (v) | | 180 |
| 7 |
| 4 |
| 191 |
|
| Adjustment to financial expenses, net | | | | | 218 |
|
The adjustment for the year ended December 31, 2018 comprises: |
| | | | | | | | | |
| | | Adjustment to financial expenses, net |
| (In $ million) | | Interest expense | Change in fair value of embedded derivatives | Other | Total |
| 6.875% Senior Secured Notes (i) | | 24 |
| 20 |
| — |
| 44 |
|
| Securitization Facility (ii) | | 1 |
| — |
| — |
| 1 |
|
| Credit Agreement (iii) | | 1 |
| — |
| — |
| 1 |
|
| Floating Rate Senior Secured Notes and 5.125% Senior Secured Notes (iv) | | — |
| — |
| — |
| — |
|
| 5.750% Senior Secured Notes (v) | | 180 |
| 88 |
| 4 |
| 272 |
|
| Adjustment to financial expenses, net | | | | | 318 |
|
The adjustment for the year ended December 31, 2017 comprises: |
| | | | | | | | | |
| | | Adjustment to financial expenses, net |
| (In $ million) | | Interest expense | Change in fair value of embedded derivatives | Other | Total |
| 6.875% Senior Secured Notes (i) | | 24 |
| 1 |
| — |
| 25 |
|
| Securitization Facility (ii) | | 1 |
| — |
| — |
| 1 |
|
| Credit Agreement (iii) | | — |
| — |
| — |
| — |
|
| Floating Rate Senior Secured Notes and 5.125% Senior Secured Notes (iv) | | — |
| — |
| — |
| — |
|
| 5.750% Senior Secured Notes (v) | | 186 |
| (14 | ) | 4 |
| 176 |
|
| Adjustment to financial expenses, net | | | | | 202 |
|
| |
| (i) | Represents the reduction in components of financial expenses, net associated with the repayment in November 2019 of the remaining $345 million of outstanding 6.875% Senior Secured Notes due 2021. |
| |
| (ii) | Represents the reduction in components of financial expenses, net associated with the repayment in January 2020 of $23 million of the Securitization Facility, in connection with Reynolds Consumer Products exiting this facility. |
| |
| (iii) | Represents the reduction in components of financial expenses, net associated with the repayment in January 2020 of $18 million of borrowings under the RGHL Group Credit Agreement. |
| |
| (iv) | Represents the reduction in components of financial expenses, net associated with the repayment in January 2020 of $1 million of outstanding Floating Rate Senior Secured Notes due 2021 and $1 million of 5.125% Senior Secured Notes due 2023. |
| |
| (v) | Represents the reduction in components of financial expenses, net associated with the repayment of the remaining $3,137 million of outstanding 5.750% Senior Secured Notes due 2020, comprising $18 million of principal repaid in January 2020 and $3,119 million of principal repaid in February 2020. |
| |
| (e) | This adjustment represents the estimated income tax effect of the pro forma adjustments. The tax effect of the pro forma adjustments was calculated using historical statutory tax rates and permanent differences attributable to Reynolds Consumer Products, in the relevant jurisdictions, for the periods presented. The estimated income tax effect for the year ended December 31, 2017 includes a tax benefit of $148 million in respect of the estimated benefit associated with remeasuring deferred taxes at December 31, 2017 as a result of the change in the U.S. Federal tax rate from 35% to 21%. The RGHL Group is subject to limitations on interest deductions, so no tax impact has been recognized in respect of the reduction in interest expense. The pro forma income tax effect adjustments do not consider the impact that the other pro forma adjustments would have on the computation of the interest deductibility limitation. |
| |
| (f) | These adjustments, except for the adjustment to cash and cash equivalents, represent the removal of the individual assets and liabilities of Reynolds Consumer Products, as if the business had been distributed as of December 31, 2019. The adjustment to cash and cash equivalents represents the cash retained by Reynolds Consumer Products at the time of its distribution on February 4, 2020. |
(g) The adjustment to cash and cash equivalents comprises:
|
| | | |
| (In $ million) | | Adjustment |
| Repayment of borrowings, comprising: | | |
| Credit Agreement repayment | | (18 | ) |
| Partial repayment of the 5.750% Senior Secured Notes due 2020 | | (18 | ) |
| Partial repayment of the Floating Rate Senior Secured Notes due 2021 | | (1 | ) |
| Partial repayment of the 5.125% Senior Secured Notes due 2023 | | (1 | ) |
| Partial repayment of the Securitization Facility | | (23 | ) |
| Proceeds received from Reynolds Consumer Products, prior to distribution, by way of settlement of intercompany loan balances | | 3,616 |
|
| Repayment of the remaining 5.750% Senior Secured Notes due 2020 | | (3,119 | ) |
| Interest payments related to repayment of debt | | (55 | ) |
| Net adjustment to cash | | 381 |
|
| |
| (h) | The following table presents details of the RGHL Group's outstanding borrowings as of December 31, 2019, on a pro forma basis after giving effect to the adjustments as a result of the repayments described in (d) above. |
|
| | | | | | | | | |
| (In $ million) | | As Reported | | Pro forma Adjustments | | As Adjusted |
| Principal amount of borrowings: | | | | | | |
| Securitization Facility | | 420 |
| | (23 | ) | | 397 |
|
| Credit Agreement | | 3,487 |
| | (18 | ) | | 3,469 |
|
| Reynolds Notes: | | | | | | |
| Reynolds Senior Secured Notes: | | | | | | |
| 5.750% Senior Secured Notes due 2020 | | 3,137 |
| | (3,137 | ) | | — |
|
| Floating Rate Senior Secured Notes due 2021 | | 750 |
| | (1 | ) | | 749 |
|
| 5.125% Senior Secured Notes due 2023 | | 1,600 |
| | (1 | ) | | 1,599 |
|
| Reynolds Senior Notes: | | | | | | |
| 7.000% Senior Notes due 2024 | | 800 |
| | — |
| | 800 |
|
| Pactiv Notes: | | | | | | |
| 7.950% Debentures due 2025 | | 276 |
| | — |
| | 276 |
|
| 8.375% Debentures due 2027 | | 200 |
| | — |
| | 200 |
|
| Other borrowings | | 15 |
| | — |
| | 15 |
|
| Total principal amount of borrowings | | 10,685 |
| | (3,180 | ) | | 7,505 |
|
| Transaction costs, embedded derivatives and original issue discounts, net of premiums | | (30 | ) | | 3 |
| | (27 | ) |
| Finance leases classified as lease liabilities | | (15 | ) | | — |
| | (15 | ) |
| Carrying value | | 10,640 |
| | (3,177 | ) | | 7,463 |
|
The adjustment to borrowings comprises a $3,157 million reduction in current borrowings and a $20 million reduction in non-current borrowings.
The adjustment to trade and other payables represents the payment of accrued interest in connection with the repayment of certain borrowings described in (d) above.
