Common use of Net Debt Clause in Contracts

Net Debt. + Net Pension Deficit to EBITDA ratio “Net Debt” = Bank overdrafts + Loans and borrowings + Finance leases + Deferred consideration payable – Cash and cash equivalents “Net Pension Deficit” = Retirement Benefit Obligations – Retirement Benefit Assets “EBITDA” = Operating profit + Depreciation charge + Amortisation charge The majority of the elements used to calculate the Net Debt + Net Pension Deficit to EBITDA Ratio should be shown on the face of the Balance sheet, Income statement and Statement of Cash Flows in a standard set of financial statements but will otherwise be found in the notes to the financial statements.