Exhibit 12
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
IFRS
Six Months | ||||||||||||||||
ended | Year ended March 31, | |||||||||||||||
September 30, | ||||||||||||||||
2007 | 2007 | 2006 | 2005 | |||||||||||||
(in £ millions) | ||||||||||||||||
Earnings: | ||||||||||||||||
Income before taxes | 1,590 | 3,471 | 3,035 | 3,329 | ||||||||||||
Add: dividends received from associates and joint ventures | 1 | 6 | 1 | 2 | ||||||||||||
Less: minority interest | (1 | ) | (2 | ) | (1 | ) | 1 | |||||||||
Less: (Income)/loss from associates and joint ventures | 6 | (15 | ) | (16 | ) | 39 | ||||||||||
Add: fixed charges | 475 | 876 | 1,068 | 1,197 | ||||||||||||
Earnings | 2,071 | 4,336 | 4,087 | 4,568 | ||||||||||||
Fixed charges: | ||||||||||||||||
Interest payable | 1,424 | 2,618 | 2,746 | 2,777 | ||||||||||||
Less: interest on pension liabilities | (1,014 | ) | (1,872 | ) | (1,816 | ) | (1,720 | ) | ||||||||
Add: one third of rental expense | 65 | 130 | 138 | 140 | ||||||||||||
Fixed charges | 475 | 876 | 1,068 | 1,197 | ||||||||||||
Ratio of earnings to fixed charges | 4.4 | 5.0 | 3.8 | 3.8 | ||||||||||||
U.K. GAAP
Year ended March 31, | ||||||||
2004 | 2003 | |||||||
(in £ millions) | ||||||||
Earnings: | ||||||||
Income before taxes | 1,957 | 3,157 | ||||||
Add: dividends received from associates and joint ventures | 3 | 6 | ||||||
Less: minority interest | 8 | (12 | ) | |||||
Less: (Income)/loss from associates and joint ventures | 34 | (329 | ) | |||||
Add: fixed charges | 1,354 | 1,754 | ||||||
Earnings | 3,356 | 4,576 |
1
Year ended March 31, | ||||||||
2004 | 2003 | |||||||
(in £ millions) | ||||||||
Fixed charges: | ||||||||
Interest payable | 1,239 | 1,634 | ||||||
Less: interest on pension liabilities | — | — | ||||||
Add: one third of rental expense | 115 | 120 | ||||||
Fixed charges | 1,354 | 1,754 | ||||||
Ratio of earnings to fixed charges | 2.5 | 2.6 | ||||||
U.S. GAAP
Year ended March 31, | ||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Net income as adjusted for U.S. GAAP | 3,483 | 1,758 | 1,980 | 892 | 4,134 | |||||||||||||||
Add: Tax effect of U.S. GAAP adjustments | (92 | ) | (203 | ) | (240 | ) | (222 | ) | 132 | |||||||||||
Add: Tax on IFRS/U.K. GAAP profit | (72 | ) | 792 | 817 | 539 | 459 | ||||||||||||||
U.S. GAAP net income before tax | 3,319 | 2,347 | 2,557 | 1,209 | 4,725 | |||||||||||||||
Add: dividends received from associates | 3 | |||||||||||||||||||
and joint ventures | 6 | 1 | 2 | 6 | ||||||||||||||||
Less: (Income)/loss from associates and | 34 | |||||||||||||||||||
joint ventures | (15 | ) | (16 | ) | 39 | (239 | ) | |||||||||||||
Add: fixed charges | 1,238 | 817 | 952 | 1,439 | 2,653 | |||||||||||||||
Earnings | 4,548 | 3,149 | 3,550 | 2,685 | 7,145 | |||||||||||||||
Fixed charges: | ||||||||||||||||||||
Interest payable (IFRS/U.K. GAAP) | 2,618 | 2,746 | 2,777 | 1,239 | 1,634 | |||||||||||||||
Less: interest on pension liabilities | (1,872 | ) | (1,816 | ) | (1,720 | ) | — | — | ||||||||||||
Add: interest on leased property | 258 | 255 | 239 | 234 | 233 | |||||||||||||||
Add: financial instruments | 175 | (436 | ) | (415 | ) | (82 | ) | 731 | ||||||||||||
U.S. GAAP interest expense | 1,179 | 749 | 881 | 1,391 | 2,598 | |||||||||||||||
Add: one third of rental expense | 59 | 68 | 71 | 48 | 55 | |||||||||||||||
Fixed charges | 1,238 | 817 | 952 | 1,439 | 2,653 | |||||||||||||||
Ratio of earnings to fixed charges | 3.7 | 3.9 | 3.7 | 1.9 | 2.7 | |||||||||||||||
2