4.1.1Financial Overview

Directional

IFRS

in US$ million

FY 2018

FY 2017

FY 2018

FY 2017

Revenue

1,703

1,676

2,240

1,861

Lease and Operate

1,298

1,501

1,302

1,554

Turnkey

406

175

938

307

EBITDA

995

596

838

612

Lease and Operate

824

954

761

919

Turnkey

278

21

184

73

Other

(107)

(380)

(107)

(380)

Underlying EBITDA

784

806

844

823

Lease and Operate

824

954

761

919

Turnkey

24

(86)

147

(34)

Other

(64)

(62)

(64)

(62)

Profit/(loss) attributable to shareholders

301

(203)

212

(155)

Underlying profit attributable to shareholders

113

80

247

151

General

The Company’s primary business segments are Lease and Operate and Turnkey plus ‘Other’ non-allocated corporate income and expense items. Revenue and EBITDA are analyzed by segment but it should be recognized that business activities are closely related.

The Company’s most recently awarded lease contracts have a longer duration and were systematically classified under IFRS as finance leases for accounting purposes, whereby the fair value of the leased asset is recorded as a Turnkey ‘sale’ during construction. For the Turnkey segment, this accounting treatment results in the acceleration of recognition of lease revenues and profits into the construction phase of the asset, whereas the asset becomes cash generating only after construction and commissioning activities have been completed, as that is the moment the Company is entitled to start receiving the lease payments. In the case of an operating lease, lease revenues and profits are recognized during the lease period, in effect more closely tracking cash receipts. Following the implementation of accounting standards IFRS 10 and 11 starting January 1, 2014, it has also become challenging to extract the Company’s proportionate share of results. To address these accounting issues, the Company discloses Directional reporting in addition to its IFRS reporting. Directional reporting treats all lease contracts as operating leases and consolidates all co-owned investees related to lease contracts on a proportional basis. Under Directional, the accounting results more closely track cash flow generation and this is the basis used by the Management Board of the Company to monitor performance and for business planning. Reference is made to 4.3.2 Operating Segments and Directional Reporting for further detail on the main principles of Directional reporting.

As the Management Board, as chief operating decision maker, monitors the operating results of its operating segments primarily based on Directional reporting, the financial information in this section 4.1 Financial Review is presented both under Directional and IFRS while the financial information presented in note 4.3.2 Operating Segments and Directional Reporting is presented under Directional with a reconciliation to IFRS. For clarity, the remainder of the financial statements are presented solely under IFRS, except where expressly stated.