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5Financial statements CONSOLIDATED FINANCIAL STATEMENTS 5.2.6. KEY MANAGEMENT RATIOS

Note Dec. 2011* Dec. 2011 Published**

Gearing (a) N/A

6% Adjusted Funds from Ordinary Activities/Adjusted Net Debt (b) 26.0%

25.7%

Return On Capital Employed (c) 13.9%

12.3%

Economic Value Added (EVA) (in million of euros) (d) N/A 108

Dec. 2012* 14.1% 28.5% 14.0% 164

* Based on continuing operations: i.e. excluding Groupe Lucien Barrière, the US Economy Hotels business and the Onboard Train Services business which in accordance with IFRS 5 were reclassified as discontinued operations.

** Based on continuing operations; i.e. excluding Groupe Lucien Barrière, which was deconsolidated in 2011, and the Onboard Train Services business, which in accordance with IFRS 5 was reclassified as a discontinued operation.

Note (a) Gearing corresponds to the ratio of net debt to equity (including minority interests).

Note (b) Adjusted Funds from Ordinary Activities/Adjusted Net Debt is calculated as follows, corresponding to the method used by the main rating agencies:

Note Dec. 2011*

Dec. 2012* Dec. 2011 Published**

NET DEBT AT END OF THE PERIOD (SEE NOTE 30) (1) 226 226

Less Economy Hotels US Debt due to other Group entities
reclassified in “Liabilities related to assets held for sale” (2) (142)

-Restatement of the debt of sold and acquired businesses prorated over the period (3) 251

207

AVERAGE NET DEBT 335 433

Rental commitments discounted at 7% (4) 3,144 3,495

TOTAL ADJUSTED NET DEBT 3,479 3,928

FUNDS FROM ORDINARY ACTIVITIES 670 737

Rental amortization 236 271

ADJUSTED FUNDS FROM ORDINARY ACTIVITIES 906 1,008

ADJUSTED FUNDS FROM ORDINARY ACTIVITIES/ADJUSTED
NET DEBT 26.0%

25.7%

421 -(177) 244 2,962 3,206 694 221 915 28.5%

* Based on continuing operations: i.e. excluding Groupe Lucien Barrière, which was deconsolidated in 2011, and the US Economy Hotels business and the Onboard Train Services business which in accordance with IFRS 5 were reclassified as discontinued operations.

** Based on continuing operations; i.e. excluding Groupe Lucien Barrière, which was deconsolidated in 2011, and the Onboard Train Services business, which in accordance with IFRS 5 was reclassified as a discontinued operation in 2011. Published rental commitments at December 31, 2011 were discounted at a rate of 8%.

  • (1) Net debt at December 31, 2012 does not include the €184.7 million the “prĂ©compte” dividend withholding tax refund that Accor was ordered to repay to the French State, following the Supreme Court of Appeal ruling in December 2012 in the dispute concerning this tax (see note 39).
  • (2) Net debt at December 31, 2011 does not include the debt due by the US Economy Hotels entities to other Group entities, which is presented as being due by external debtors, as for the calculation of Funds from Ordinary Activities presented above.
  • (3) Including €62 million in adjustments for disposals and €(239) million in adjustments for the acquisition of Mirvac and of Grupo Posadas’ South American hotel network.
  • (4) Rental commitments correspond to the amounts presented in note 6 C. They do not include any variable or contingent rentals. The 7% rate is the rate used by Standard & Poor’s in 2012. In prior periods, the rate was 8%.

Adjusted net debt at December 31, 2011 is based on rental Adjusted net debt at December 31, 2012 is based on rental commitments discounted at 8% (€3,495 million). If a discount commitments discounted at 7% (€2,962 million). rate of 7% had been applied and if the commitments of the US

Note (c) Return On Capital Employed (ROCE) is defined below.

Economy Hotels business had been excluded, adjusted debt at
December 31, 2011, would have been €3,144 million. Note (d) Economic Value Added (EVA).