| _id | d1b2fe26a |
| title |  |
| text | Gross Profit
Year Ended December 31, 2019 Compared with the Year Ended December 31, 2018

Gross profit and margin decreased during the year ended December 31, 2019 compared to prior year primarily due to an increase in hosting migration costs, higher amortization of software development, recognition of previously deferred costs and the sale of OneContent business on April 2, 2018, which carried a higher gross margin compared with our other businesses. These were partially offset with an increase in organic sales for Veradigm and our acute solutions in 2019.

Year Ended December 31, 2018 Compared with the Year Ended December 31, 2017

Gross profit increased during the year ended December 31, 2018 compared with the year ended December 31, 2017 primarily due to acquisitions. From a revenue mix perspective, gross profit associated with our recurring revenue streams, which include the delivery of recurring subscription-based software sales, support and maintenance, and recurring client services improved as we continued to expand our customer base for these services, particularly those related to outsourcing and revenue cycle management.

to outsourcing and revenue cycle management. Gross profit associated with our non-recurring software delivery, support and maintenance revenue stream decreased primarily due to fewer perpetual software license sales of our acute and population health management solutions. Gross profit associated with our non-recurring client services revenue stream, which includes non-recurring project-based client services, decreased primarily driven by higher internal personnel costs, including those related to

personnel costs, including those related to incremental resources from recent acquisitions. Gross margin decreased primarily due to lower sales of higher margin perpetual software licenses and higher amortization of software development and acquisition-related assets driven by additional amortization expense associated with intangible assets acquired as part of recent acquisitions.

 |
| table | | Year Ended December 31, |             |           |                         |
--------------------- | ----------------------- | ----------- | --------- | ----------------------- | -----------------------
(In thousands)        | 2019                    | 2018        | 2017      | 2019 % Change from 2018 | 2018 % Change from 2017
Total cost of revenue | $ 1,058,097             | $ 1,025,419 | $ 864,909 | 3.2%                    | 18.6%
Gross profit          | $ 713,580               | $ 724,543   | $ 632,799 | (1.5%)                  | 14.5%
Gross margin %        | 40.3%                   | 41.4%       | 42.3%     |                         | |


| _id | d1a72a812 |
| title |  |
| text | Trade Receivables, Net
The carrying amounts reported in the Consolidated Balance Sheets for Trade receivables, net approximate their fair value because of their short-term nature.
A summary of Trade receivables, net of allowance for doubtful accounts is as follows (in millions):

In addition to the amounts above, we have unbilled receivables that we do not expect to collect within the next year included in Other non-current assets in our Consolidated Balance Sheets. Billings for these receivables are based on contractual terms. Refer to Note 11 — Other Non-Current Assets.

 |
| table | | December 31, |
------------------------------- | ------------ | ------
                                | 2019         | 2018
Trade receivables — billed      | $136.6       | $136.6
Trade receivables — unbilled    | 39.8         | 37.0
Trade receivables               | 176.4        | 173.6
Allowance for doubtful accounts | (1.3)        | (1.3)
Trade receivables, net          | $175.1       | $172.3 |


| _id | d1b350e7a |
| title |  |
| text | This section sets out the assets and liabilities subject to a committed plan to sell.
At 30 June 2019, assets held for sale includes Group properties (2018: assets and liabilities relating to the Petrol business, and other Group properties, have been classified as held for sale).

Assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, and financial assets which are specifically exempt from this measurement requirement.

An impairment loss is recognised for any initial or subsequent write-down of the asset to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset, but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the asset is recognised at the date of derecognition. Assets are not depreciated or amortised while they are classified as held for sale. Interest and

are classified as held for sale. Interest and other expenses attributable to the liabilities classified as held for sale continue to be recognised.

 |
| table | | 2019 | 2018
--------------------------------------------------------------- | ---- | ----
                                                                | $M   | $M
Property, plant and equipment                                   | 209  | 666
Other assets                                                    | 16   | 155
Total assets classified as held for sale                        | 225  | 821
Provisions                                                      | –    | 21
Total liabilities directly associated with assets held for sale | –    | 21 |


| _id | d1b335e72 |
| title |  |
| text | 3. REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenues and related costs on construction contracts are recognized as the performance obligations are satisfied over time in accordance with ASC 606, Revenue from Contracts with Customers. Under ASC 606, revenue and associated profit, will be recognized as the customer obtains control of the goods and services promised in the contract (i.e., performance obligations). The cost of uninstalled materials or equipment will generally be excluded from the Company’s recognition of profit, unless specifically

recognition of profit, unless specifically produced or manufactured for a project, because such costs are not considered to be a measure of progress.

The following table represents a disaggregation of revenue by customer type from contracts with customers for the years ended December 31, 2019 and 2018:

 |
| table | | Year Ended December 31, |
---------------------------------------------- | ----------------------- | -------
                                               | 2019                    | 2018
Agricultural, Commercial, and Industrial (ACI) | $28,940                 | $33,193
Public Works                                   | 12,128                  | 17,986
Residential                                    | 18,762                  | 19,786
Total                                          | 59,830                  | 70,965 |


| _id | d1b3177b0 |
| title |  |
| text | Net Pool Allocation: Net pool allocation decreased by $22.1 million, from a positive $17.8 million during the year ended December 31, 2018 to a negative $4.3 million during the year ended December 31, 2019. The decrease in net pool allocation was attributable to the movement in the adjustment of the net pool results generated by the GasLog vessels in accordance with the pool distribution formula for the total fleet of the pool, as well as GasLog’s vessels exiting the Cool Pool in June and July 2019. GasLog

the Cool Pool in June and July 2019. GasLog recognized gross revenues and gross voyage expenses and commissions of $45.3 million and $8.1 million, respectively, from the operation of its vessels in the Cool Pool during the year ended December 31, 2019 (December 31, 2018: $102.3 million and $10.2 million, respectively). GasLog’s total net pool performance is presented below:

Voyage Expenses and Commissions: Voyage expenses and commissions increased by 16.7%, or $3.4 million, from $20.4 million during the year ended December 31, 2018 to $23.8 million during the year ended December 31, 2019. The increase in voyage expenses and commissions is mainly attributable to an increase of $3.4 million in bunkers and voyage expenses consumed during certain unchartered and off-hire periods for the vessels trading in the spot market.

 |
| table | | For the year ended |
---------------------------------------------------------------------------------------- | ------------------ | -------
                                                                                | 2018               | 2019
Amounts in thousands of U.S. Dollars                                                     |                    |
Pool gross revenues (included in Revenues)                                               | 102,253            | 45,253
Pool gross voyage expenses and commissions (included in Voyage expenses and commissions) | (10,154)           | (8,086)
GasLog’s adjustment for net pool allocation (included in Net pool allocation)            | 17,818             | (4,264)
GasLog’s total net pool performance                                                      | 109,917            | 32,903 |


| _id | d1a73d426 |
| title |  |
| text | Customers and Markets

Our primary customers, in terms of our sales revenues, include premier integrated device manufacturers, such as Texas Instruments and Intel Mobile, plus leading fabless design companies, such as Broadcom, MediaTek, Realtek, Qualcomm and Novatek. Although we are not dependent on any single customer, a significant portion of our operating revenues has been generated from sales to a few customers. Our top ten customers accounted for approximately 51.3% of our operating revenues in 2019. Set forth below is a

operating revenues in 2019. Set forth below is a geographic breakdown of our operating revenues in 2017, 2018 and 2019 by the location of our customers.

 |
| table | |       | Years Ended December 31, |
--------------------------- | ----- | ------------------------ | -----
Region                      | 2017  | 2018                     | 2019
                            | %     | %                        | %
Taiwan                      | 32.8  | 36.4                     | 36.4
Singapore                   | 20.6  | 16.4                     | 16.2
China (including Hong Kong) | 12.7  | 12.2                     | 12.9
Japan                       | 3.2   | 3.9                      | 6.6
USA                         | 12.2  | 15.6                     | 13.5
Europe                      | 9.6   | 8.3                      | 4.7
Others                      | 8.9   | 7.2                      | 9.7
Total                       | 100.0 | 100.0                    | 100.0 |


| _id | d1b34823e |
| title |  |
| text | Export sales from the U.S. during the years ended December 31, 2019, 2018 and 2017 were $531.8, $578.0 and $512.5, respectively. In the year ended December 31, 2019, these exports were shipped primarily to Asia (33%), Europe (24%), Canada (18%), Middle East (13%) and other (12%).

Sales to customers outside the U.S. accounted for a significant portion of Roper’s revenues. Sales are attributed to geographic areas based upon the location where the product is ultimately shipped. Roper’s net revenues for the years ended December 31, 2019, 2018 and 2017 are shown below by region, except for Canada, which is presented separately as it is the only country in which Roper has had greater than 4% of total revenues for any of the three years presented:

 |
| table | | Application Software | Network Software & Systems | Measurement & Analytical MeasurementSolutions | Process Technologies | Total
----------------- | -------------------- | -------------------------- | --------------------------------------------- | -------------------- | ----------
2019              |                      |                            |                                               |                      |
Canada            | $   41.0             | $   71.1                   | $   81.4                                      | $   28.9             | $ 222.4
Europe            | 188.8                | 36.7                       | 307.2                                         | 113.8                | 646.5
Asia              | 3.5                  | 18.8                       | 185.0                                         | 108.0                | 315.3
Middle East       | 8.6                  | 37.5                       | 13.1                                          | 44.4                 | 103.6
Rest of the world | 25.8                 | 9.5                        | 45.3                                          | 55.2                 | 135.8
Total             | $ 267.7              | $ 173.6                    | $ 632.0                                       | $ 350.3              | $ 1,423.6
2018              |                      |                            |                                               |                      |
Canada            | $   38.5             | $   58.5                   | $   79.3                                      | $   35.0             | $    211.3
Europe            | 188.6                | 12.2                       | 361.7                                         | 117.5                | 680.0
Asia              | 3.2                  | 11.0                       | 220.3                                         | 115.4                | 349.9
Middle East       | 4.7                  | 48.6                       | 14.4                                          | 34.4                 | 102.1
Rest of the world | 29.5                 | 7.8                        | 42.5                                          | 55.0                 | 134.8
Total             | $  264.5             | $  138.1                   | $  718.2                                      | $  357.3             | $  1,478.1
2017              |                      |                            |                                               |                      |
Canada            | $   26.6             | $   52.9                   | $   72.9                                      | $   34.7             | $    187.1
Europe            | 176.5                | 11.0                       | 310.6                                         | 98.1                 | 596.2
Asia              | 2.4                  | 7.3                        | 205.9                                         | 109.8                | 325.4
Middle East       | 4.8                  | 58.8                       | 13.4                                          | 35.5                 | 112.5
Rest of the world | 23.2                 | 6.1                        | 42.0                                          | 48.7                 | 120.0
Total             | $  233.5             | $  136.1                   | $  644.8                                      | $  326.8             | $  1,341.2 |


| _id | d1a72e1ec |
| title |  |
| text | Revenue by geographic area are as follows (in thousands):
Revenues by geographic area are based upon the country of billing. The geographic location of distributors and OEM customers may be different from the geographic location of the ultimate end users of the products and services provided by us. No single non-U.S. country accounted for more than 10% of our revenue in fiscal years ended February 28, 2019, 2018 and 2017.

 |
| table | |         | Year Ended February 28, |
------------------------------ | ------- | ----------------------- | -------
                               | 2019    | 2018                    | 2017
United States                  | 268,453 | 265,613                 | 259,974
Europe, Middle East and Africa | 49,496  | 45,830                  | 49,918
South America                  | 15,134  | 20,699                  | 17,738
Canada                         | 9,815   | 14,958                  | 8,412
Asia and Pacific Rim           | 13,958  | 12,873                  | 8,967
All other                      | 6,944   | 5,939                   | 6,093
                               | 363,800 | 365,912                 | 351,102 |


| _id | d1b36001e |
| title |  |
| text | The average duration of the defined benefit obligation at the end of the reporting period is 6.8 years (2018: 6.3 years) which relates wholly to active participants.
The plan invests entirely in pooled superannuation trust products where prices are quoted daily. The asset allocation of the plan has been set taking into account the membership profile, the liquidity requirements of the plan, and risk appetite of the Group.
The percentage invested in each asset class is as follows:

 |
| table | | 2019  | 2018
------------------------- | ----- | -----
                          | %     | %
Equity instruments        | 53.9  | 58.5
Debt instruments          | 18.6  | 22.5
Real estate               | 10.8  | 3.5
Cash and cash equivalents | 3.7   | 3.0
Other                     | 13.0  | 12.5
Total                     | 100.0 | 100.0 |


| _id | d1b35ac18 |
| title |  |
| text | GasLog Ltd. and its Subsidiaries
Notes to the consolidated financial statements (Continued)
For the years ended December 31, 2017, 2018 and 2019
(All amounts expressed in thousands of U.S. Dollars, except share and per share data)
26. Derivative Financial Instruments
The fair value of the derivative assets is as follows:

 |
| table | | As of December 31, |
--------------------------------------------------------------------------------------- | ------------------ | -----
                                                                                | 2018               | 2019
Derivative assets carried at fair value through profit or loss (FVTPL)                  |                    |
Interest rate swaps                                                                     | 15,188             | 18
Forward foreign exchange contracts                                                      | —                  | 389
Derivative assets designated and effective as hedging instruments carried at fair value |                    |
Cross currency swaps                                                                    | —                  | 3,594
Total                                                                                | 15,188             | 4,001
Derivative financial instruments, current assets                                        | 6,222              | 429
Derivative financial instruments, non-current assets                                    | 8,966              | 3,572
Total                                                                                | 15,188             | 4,001 |


| _id | d1b33ea2c |
| title |  |
| text | 17. Called up share capital
Called up share capital is the number of shares in issue at their par value. A number of shares were allotted during the year in relation to employee share schemes.
Accounting policies
Equity instruments issued by the Group are recorded at the amount of the proceeds received, net of direct issuance costs.

Notes: 1 At 31 March 2019 the Group held 1,584,882,610 (2018: 2,139,038,029) treasury shares with a nominal value of €264 million (2018: €356 million). The market value of shares held was €2,566 million (2018: €4,738 million). During the year, 45,657,750 (2018: 53,026,317) treasury shares were reissued under Group share schemes. On 25 August 2017, 729,077,001 treasury shares were issued in settlement of tranche 1 of a maturing subordinated mandatory convertible bond issued on 19 February 2016. On 25

bond issued on 19 February 2016. On 25 February 2019, 799,067,749 treasury shares were issued in settlement of tranche 2 of the maturing subordinated mandatory convertible bond.

2 On 5 March 2019 the Group announced the placing of subordinated mandatory convertible bonds totalling £1.72 billion with a 2 year maturity date in 2021 and £1.72 billion with a 3 year maturity date due in 2022. The bonds are convertible into a total of 2,547,204,739 ordinary shares with a conversion price of £1.3505 per share.
3 Represents US share awards and option scheme awards.

 |
| table | |                | 2019  |                | 2018
----------------------------------------------------------------------------- | -------------- | ----- | -------------- | -----
                                                                              | Number         | €m    | Number         | €m
Ordinary shares of 2020⁄21 US cents each allotted, issued and fully paid:1, 2 |                |       |                |
1 April                                                                       | 28,814,803,308 | 4,796 | 28,814,142,848 | 4,796
Allotted during the year3                                                     | 454,870        | –     | 660,460        | –
31 March                                                                      | 28,815,258,178 | 4,796 | 28,814,803,308 | 4,796 |


| _id | d1b337236 |
| title |  |
| text | Consolidated Results
The table below sets forth for the fiscal years ended April 30, 2019 and 2018, the percentage of consolidated net sales represented by certain items in the Company’s consolidated statements of operations:

 |
| table | | 2019   | 2018
------------------------------------------------------ | ------ | -------
Revenues                                               |        |
FEI-NY                                                 | 76.9%  | 68.4%
FEI-Zyfer                                              | 24.7   | 38.8
Less intersegment revenues                             | (1.6)  | (7.2)
                                                       | 100.0  | 100.0
Cost of Revenues                                       | 68.1   | 86.9
Gross profit                                           | 31.9   | 13.1
Selling and Administrative expenses                    | 24.5   | 26.9
Research and Development expenses                      | 13.1   | 17.6
Operating Profit/(Loss)                                | (5.7)  | (31.4)
Other Income (Expenses), net                           | 0.7    | 2.8
Provision (Benefit) for Income Taxes                   | 0.1    | 28.4
Loss from continuing operations                        | (5.1)  | (57.0)
(Loss) Income from discontinued operations, net of tax | -      | (2.5)
Loss on sale of discontinued operations                | -      | (0.9)
Net Loss                                               | (5.1)% | (60.4)% |


| _id | d1b2fb63c |
| title |  |
| text | The amount of unrecognized tax benefits at December 31, 2019 increased by $387 million in 2019 to $7,146 million. A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:

The additions to unrecognized tax benefits related to the current and prior years were primarily attributable to U.S. federal and state tax matters, as well as non-U.S. tax matters, including transfer pricing, credits and incentives. The settlements and reductions to unrecognized tax benefits for tax positions of prior years were primarily attributable to U.S. federal and state tax matters, non-U.S. audits and impacts due to lapse of statute of limitations.

The unrecognized tax benefits at December 31, 2019 of $7,146 million can be reduced by $584 million associated with timing adjustments, U.S. tax credits, potential transfer pricing adjustments and state income taxes. The net amount of $6,562 million, if recognized, would favorably affect the company’s effective tax rate. The net amounts at December 31, 2018 and 2017 were $6,041 million and $6,064 million, respectively.

 |
| table | ($ in millions)                                                                           |        |         |
----------------------------------------------------------------------------------------- | ------ | ------- | ------
                                                                                | 2019   | 2018    | 2017
Balance at January 1                                                                      | $6,759 | $ 7,031 | $3,740
Additions based on tax positions related to the current year                              | 816    | 394     | 3,029
Additions for tax positions of prior years                                                | 779    | 1,201   | 803
Reductions for tax positions of prior years (including impacts due to a lapse of statute) | (922)  | (1,686) | (367)
Settlements                                                                               | (286)  | (181)   | (174)
Balance at December 31                                                                    | $7,146 | $ 6,759 | $7,031 |


| _id | d1a711fd8 |
| title |  |
| text | CAPITAL EXPENDITURES

Capital expenditures include costs associated with acquiring property, plant and equipment and placing it into service. The telecommunications business requires extensive and continual investments, including investment in new technologies and the expansion of capacity and geographical reach. Expenditures related to the acquisition of spectrum licences and additions to right-of-use assets are not included in capital expenditures and do not factor into the calculation of free cash flow or capital intensity.

of free cash flow or capital intensity. See “Managing Our Liquidity and Financial Resources”, “Key Performance Indicators”, and “Non-GAAP Measures and Related Performance Measures” for more information.

Capital expenditures are significant and have a material impact on our cash flows; therefore, our management teams focus on planning, funding, and managing them. We believe this measure best reflects our cost of property, plant and equipment in a given period and is a simpler measure for comparing between periods.

1 Includes additions to property, plant and equipment net of proceeds on disposition, but does not include expenditures for spectrum licences or additions to right-of-use assets. 2 As defined. See “Key Performance Indicators”.

WIRELESS The increase in capital expenditures in Wireless this year was a result of investments made to upgrade our wireless network to continue delivering reliable performance for our customers. We continued augmenting our existing LTE network with 4.5G technology investments that are also 5G-ready to prepare for the commercial launch of 5G in select markets in early 2020. In 2019, we acquired spectrum licences for $1,731 million, which is not included in the table above. See “Managing Our Liquidity and

the table above. See “Managing Our Liquidity and Financial Resources”.

CABLE The decrease in capital expenditures in Cable this year was a result of lower purchases of customer premise equipment and lower investments related to the initial launch of Ignite TV. We have continued upgrading our network infrastructure with additional fibre deployments, including increasing our fibre-to-the-home and fibre-to-the-curb distribution. These upgrades will lower the number of homes passed per node and incorporate the latest technologies to help deliver more bandwidth and an even more

to help deliver more bandwidth and an even more reliable customer experience as we progress in our Connected Home roadmap.

MEDIA The increase in capital expenditures this year was a result of higher investments in renovations at various Toronto Blue Jays facilities, partially offset by lower investment in our broadcast and IT infrastructure and the sale of our publishing business.
CORPORATE The increase in Corporate capital expenditures this year was a result of higher investments in IT and our various real estate facilities this year, including the impact of $25 million of proceeds from the sale of certain assets last year.

CAPITAL INTENSITY Capital intensity this year was in line with 2018.

 |
| table | (In millions of dollars, except capital intensity) | Years ended December 31 |       |
-------------------------------------------------- | ----------------------- | ----- | -------
                                                   | 2019                    | 2018  | %Chg
Capital expenditures 1                             |                         |       |
Wireless                                           | 1,320                   | 1,086 | 22
Cable                                              | 1,153                   | 1,429 | (19)
Media                                              | 102                     | 90    | 13
Corporate                                          | 232                     | 185   | 25
Capital expenditures 1                             | 2,807                   | 2,790 | 1
Capital intensity 2                                | 18.6%                   | 18.5% | 0.1 pts |


| _id | d1b3a3288 |
| title |  |
| text | 9. BALANCE SHEET DETAILS
Prepaid expenses and other assets consist of the following (in thousands):

 |
| table | | Fiscal year-end |
--------------------------------------- | --------------- | -------
                                        | 2019            | 2018
Prepaid and refundable income taxes     | $44,096         | $37,884
Other taxes receivable                  | 11,208          | 16,930
Prepaid expenses and other assets       | 22,689          | 30,266
Total prepaid expenses and other assets | $77,993         | $85,080 |


| _id | d1b3b15c2 |
| title |  |
| text | Operating income included the following:
(1) Represents the write-off of certain spare parts.
See discussion of operating income below under “Segment Results.”

 |
| table | |        | Fiscal
-------------------------------------------------------------------------------------- | ------ | -------------
                                                                                | 2019   | 2018
                                                                                |        | (in millions)
Acquisition-related charges:                                                           |        |
Acquisition and integration costs                                                      | $  27  | $  14
Charges associated with the amortization of acquisition related fair value adjustments | 3      | 8
                                                                                | 30     | 22
Restructuring and other charges, net                                                   | 255    | 126
Other items(1)                                                                         | 17     | —
Total                                                                                | $  302 | $  148 |


| _id | d1b3849b4 |
| title |  |
| text | The credit risk profile of trade receivables
Other than those disclosed above no other impairment losses on receivables and contract assets arising from contracts with customers have been recognised. Other than trade receivables there are no financial assets that are past their due date at 31st December 2019.
Payment terms across the Group vary dependent on the geographic location of each operating company. Payment is typically due between 20 and 90 days after the invoice is issued.

All contracts with customers do not contain a significant financing component.
The movement in the allowance for impairment in respect of trade receivables during the year was as follows:

 |
| table | | 2019  | 2018
------------------------------------ | ----- | -----
                                     | £m    | £m
Balance at 1st January               | 9.8   | 9.6
Additional impairment                | 8.6   | 2.8
Amounts written off as uncollectable | (1.2) | (0.7)
Amounts recovered                    | (0.6) | (0.5)
Impairment losses reversed           | (1.1) | (1.4)
Exchange differences                 | (0.7) | –
Balance at 31st December             | 14.8  | 9.8 |


| _id | d1b334aea |
| title |  |
| text | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except for share and per share data)
NOTE 3 — Accounts Receivable
The components of accounts receivable are as follows:

 |
| table | | As of December 31, |
------------------------------------- | ------------------ | -------
                                      | 2019               | 2018
Accounts receivable, gross            | $78,269            | $79,902
Less: Allowance for doubtful accounts | (261)              | (384)
Accounts receivable, net              | $78,008            | $79,518 |


| _id | d1a71f534 |
| title |  |
| text | Medical Segment Results
Below is a table summarizing results for the fiscal years ended:
Net Sales. The Medical segment had minimal net sales in both periods from newly launched products.
Gross Profit. Medical segment gross profit was a loss of $3.5 million in fiscal 2018 compared to a loss of $3.1 million in fiscal 2017. The increased loss primarily relates to the vertical manufacturing integration of some key components and research efforts to expand the product offerings.

Loss from Operations. Medical segment loss from operations increased $2.9 million to $11.4 million in fiscal 2018 compared to $8.5 million in fiscal 2017. The increased loss relates to higher outside professional fees, research and development and marketing expenses in fiscal 2018. Financial Condition, Liquidity and Capital Resources

 |
| table | (Dollars in Millions) | April 28, 2018 | April 29, 2017 | Net Change ($) | Net Change (%)
--------------------- | -------------- | -------------- | -------------- | --------------
Net Sales             | $ 0.3          | $ 0.2          | $ 0.1          | 50.0 %
Gross Profit          | $ (3.5)        | $ (3.1)        | $ (0.4)        | (12.9)%
Loss from Operations  | $ (11.4)       | $ (8.5)        | $ (2.9)        | (34.1)% |


| _id | d1b2ed898 |
| title |  |
| text | ALTERNATIVE PERFORMANCE MEASURES
Time Charter Equivalent (TCE) earnings:

TORM defines TCE earnings, a performance measure, as revenue after port expenses, bunkers and commissions incl. freight and bunker derivatives. The Company reports TCE earnings because we believe it provides additional meaningful information to investors in relation to revenue, the most directly comparable IFRS measure. TCE earnings is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company’s performance irrespective of changes in the mix of

performance irrespective of changes in the mix of charter types (i.e. spot charters, time charters and bareboat charters) under which the vessels may be employed between the periods. Below is presented a reconciliation from Revenue to TCE earnings:

 |
| table | USDm                                   | 2019   | 2018   | 2017
-------------------------------------- | ------ | ------ | ------
Reconciliation to revenue              |        |        |
Revenue                                | 692.6  | 635.4  | 657.0
Port expenses, bunkers and commissions | -267.7 | -283.0 | -259.9
TCE earnings                           | 424.9  | 352.4  | 397.1 |


| _id | d1b356974 |
| title |  |
| text | Capital and financial risk management
13 Capital risk management
The Group's objectives when managing capital are to safeguard its ability to continue as a going concern, so that it can continue to provide returns to its shareholders and benefits to its stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

In the future, the Directors may pursue funding options such as debt, sale and leaseback of assets, additional equity and various other funding mechanisms as appropriate in order to undertake its projects and deliver optimum shareholders’ return.
The Group intends to maintain a gearing ratio appropriate for a company of its size and growth.

The Group manages its capital structure by regularly reviewing its gearing ratio to ensure it maintains an appropriate level of gearing within facility covenants. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total interest bearing financial liabilities, less cash and cash equivalents. Total capital is calculated as equity, as shown in the Consolidated Balance Sheet, plus net debt.

 |
| table | | 30 June 2019 | 30 June 2018
------------------------------- | ------------ | ------------
                                | $'000        | $'000
Total borrowings and lease      | 867,177      | 302,954
Less: cash and cash equivalents | (398,999)    | (417,982)
Net debt (surplus cash)         | 468,178      | (115,028)
Total equity                    | 875,303      | 893,977
Total capital                   | 1,343,481    | 778,949
Gearing ratio                   | 35.0%        | -% |


| _id | d1b34ba24 |
| title |  |
| text | 14 Taxation
UK corporation tax for the year-ended 31 March 2019 is calculated at 19% (2018: 19%) of the estimated assessable loss for the period.

 |
| table | | Year-ended 31 March 2019 | Year-ended 31 March 2018 Restated See note 2
------------------------------------------------- | ------------------------ | --------------------------------------------
                                                  | $M                       | $M
Current income tax:                               |                          |
UK corporation tax                                | 1.3                      | 1.2
Adjustments in respect of previous years UK tax   | 0.3                      | 0.3
Overseas tax before exceptional items             | 22.2                     | 23.0
Adjustment in respect of previous years           | 13.1                     | 10.2
Total current tax charge                          | 36.9                     | 34.7
Deferred tax:                                     |                          |
Origination and reversal of temporary differences | 2.5                      | (16.7)
Impact of changes in US tax rate                  | -                        | 5.4
Adjustment in respect of previous years           | (12.7)                   | (3.5)
Total deferred tax credit                         | (10.2)                   | (14.8)
Total income tax charge                           | 26.7                     | 19.9 |


| _id | d1b2feb48 |
| title |  |
| text | Free cash flow generation
Bridge from operating income to free cash flow (illustrative)
Focus on delivering a high conversion of operating income to free cash flow of operating income to free cash flow
of operating income to free cash flow
Ongoing activities to reduce costs “below operating income”, including restructuring, financial net and tax
Striving to maintain working capital efficiency but fluctuations may impact cash flow

Planning assumption for capex is about 2% of net sales, while expected to remain above 2% in 2020 due to the new factory in the US
Ambition to over time maintain restructuring charges to around 1% of net sales
M&A will vary depending on strategic decisions but assumed to be around 1–2% of net sales
Operating margin excluding restructuring charges. All numbers are in relation to net sales.
1) Restructuring charges as reported in the income statement for each year.

 |
| table | | 2018   | 2019  | Ambition
------------------------------- | ------ | ----- | ---------
Operating margin                | 4.4%   | 5.0%  | >12%
financial net, tax and other    | -3.8%  | -2.5% | -4%
+ depreciation and amortization | +3.9%  | +2.9% | +3 to 4%
+ depreciation of leased assets | –      | +1.1% | +1%
± change in working capital     | +3.7%  | +1.0% | ±0
- capex                         | - 2.4% | -2.8% | -2%
- leasing payment               | -      | -1.3% | -1%
-  restructuring costs1)        | -3.8%  | -0.4% | -1%
Free cash flow (before M&A)     | 2.0%   | 3.4%  | >8%
- M&A                           | -0.6%  | -0.7% | ~1 to -2% |


| _id | d1a72fbe6 |
| title |  |
| text | GasLog Ltd. and its Subsidiaries
Notes to the consolidated financial statements (Continued)
For the years ended December 31, 2017, 2018 and 2019
(All amounts expressed in thousands of U.S. Dollars, except share and per share data)
19. Financial Income and Costs
An analysis of financial income and costs is as follows:

 |
| table | |         | For the year ended December 31, |
------------------------------------------------------------------------------------- | ------- | ------------------------------- | -------
                                                                                | 2017    | 2018                            | 2019
Financial Income                                                                      |         |                                 |
Interest income                                                                       | 2,650   | 4,784                           | 5,318
Total financial income                                                                | 2,650   | 4,784                           | 5,318
Financial Costs                                                                       |         |                                 |
Amortization and write-off of deferred loan/bond issuance costs/premium               | 12,398  | 12,593                          | 14,154
Interest expense on loans and realized loss on cash flow hedges                       | 85,813  | 111,600                         | 122,819
Interest expense on bonds and realized loss on CCSs                                   | 27,085  | 30,029                          | 34,607
Lease charge                                                                          | 10,875  | 10,520                          | 10,506
Loss arising on bond repurchases at a premium (Note 13)13)                            | 1,459   | —                               | 2,119
Other financial costs, including unrealized foreign exchange losses on cash and bonds | 1,551   | 1,885                           | 6,276
Total financial costs                                                                 | 139,181 | 166,627                         | 190,481 |


| _id | d1b2f1d3a |
| title |  |
| text | Note 16: Quarterly Results of Operations (Unaudited)
The following table sets forth certain quarterly information for fiscal years 2019 and 2018. This information, in the opinion of the Company’s management, reflects all adjustments (consisting only of normal recurring adjustments) necessary to present fairly this information when read in conjunction with the Consolidated Financial Statements and notes thereto included elsewhere herein (amounts in thousands except per share data):

(1) Operating income (loss) as a percentage of net sales fluctuates from quarter to quarter due to a number of factors, including net sales fluctuations, foreign currency exchange, restructuring charges, product mix, the timing and expense of moving product lines to lower-cost locations, the write-down of long lived assets, the net gain/loss on sales and disposals of assets and the relative mix of sales among distributors, original equipment manufacturers, and electronic manufacturing service providers.

 |
| table | Fiscal Year 2019 Quarters Ended |          |          |          |
------------------------------- | -------- | -------- | -------- | --------
                                | Jun-30   | Sep-30   | Dec-31   | Mar-31
Net sales                       | $327,616 | $349,233 | $350,175 | $355,794
Gross margin                    | 94,821   | 113,565  | 123,750  | 126,406
Operating income (1)            | 35,176   | 50,000   | 61,616   | 54,057
Net income                      | $35,220  | $37,141  | $40,806  | $93,420
Net income per basic share      | $0.61    | $0.64    | $0.70    | $1.60
Net income per diluted share    | $0.60    | $0.63    | $0.69    | $1.58 |


| _id | d1b33ad1e |
| title |  |
| text | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except for share and per share data)
NOTE 13 — Derivatives
The effect of derivative instruments on the Consolidated Statements of Earnings is as follows:

 |
| table | |        | Years Ended December 31, |
----------------------------------------------------------------------------------- | ------ | ------------------------ | ------
                                                                                | 2019   | 2018                     | 2017
Foreign Exchange Contracts:                                                         |        |                          |
Amounts reclassified from AOCI to earnings:                                         |        |                          |
Net sales                                                                           | $—     | $383                     | $(488)
Cost of goods sold                                                                  | 860    | (6)                      | 497
Selling, general and administrative                                                 | 92     | 107                      | 45
Total amounts reclassified from AOCI to earnings                                    | 952    | 484                      | 54
Loss recognized in other expense for hedge ineffectiveness                          | —      | —                        | (1)
Loss recognized in other expense for derivatives not designated as cash flow hedges | —      | —                        | (15)
Total derivative gain on foreign exchange contracts recognized in earnings          | $952   | $484                     | $38
Interest Rate Swaps:                                                                |        |                          |
Benefit recorded in interest expense                                                | $491   | $421                     | $37
Total gain                                                                          | $1,443 | $905                     | $75 |


| _id | d1a712ec4 |
| title |  |
| text | (1) Mr. Clark did not receive a FY19 EAIP payout.
(2) Pursuant to the terms of Mr. Noviello’s Transition Services Agreement dated January 31, 2019 (the ‘‘Transition Services Agreement’’), Mr. Noviello received 75% of his target FY19 EAIP amount under the Company’s Executive Severance Plan because it was greater than the amount that he would have earned under the FY19 EAIP irrespective of individual performance.

(3) Ms. Cappellanti-Wolf and Messrs. Kapuria and Taylor each earned an individual performance factor of 100%. In determining the appropriate individual performance factor for each of these executives, the Compensation Committee, with recommendation of the CEO, considered leadership, contributions to NortonLifeLock’s achievement of its goals, and strategic planning among other factors.
(4) The Compensation Committee did not exercise its discretion to reduce any payouts.

 |
| table | | FY19 EAIP NEO Payout Amounts |                             |                                 |                                   |
-------------------------- | ---------------------------- | --------------------------- | ------------------------------- | --------------------------------- | -------------------------------
NEO                        | Base Salary                  | Annual Incentive Target (%) | Company Performance Funding (%) | Individual Performance Factor (%) | Individual Payout Amount ($)(4)
Gregory S. Clark(1)        | 1,000,000                    | 150                         | n/a                             | n/a                               | 0
Nicholas R. Noviello(2)    | 650,000                      | 100                         | n/a                             | n/a                               | 487,500
Amy L. Cappellanti-Wolf(3) | 440,000                      | 70                          | 35.6                            | 100                               | 109,648
Samir Kapuria(3)           | 450,000                      | 100                         | 35.6                            | 100                               | 152,172
Scott C. Taylor(3)         | 600,000                      | 100                         | 35.6                            | 100                               | 213,600 |


| _id | d1b369218 |
| title |  |
| text | @ As a policy, N Chandrasekaran, Chairman, has abstained from receiving commission from the Company and hence not stated.
@@ In line with the internal guidelines of the Company, no payment is made towards commission to the Non-Executive Directors of the Company, who are in full time employment with any other Tata company and hence not stated.
* Relinquished the position of Independent Director w.e.f. July 10, 2018.
** Relinquished the position of Independent Director w.e.f. September 28, 2018.

*** Appointed as an Additional and Independent Director w.e.f. December 18, 2018.
**** Appointed as an Additional and Independent Director w.e.f. January 10, 2019.
^ Since the remuneration is only for part of the year, the ratio of their remuneration to median remuneration and percentage increase in remuneration is not comparable and hence, not stated.
^^ Remuneration received in FY 2019 is not comparable with remuneration received in FY 2018 and hence, not stated.
Particulars of employees

Particulars of employees
The information required under Section 197 of the Act read with Rule 5 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, are given below:
a. The ratio of the remuneration of each director to the median remuneration of the employees of the Company and percentage increase in remuneration of each Director, Chief Executive Officer, Chief Financial Officer and Company Secretary in the financial year:

b. The percentage increase in the median remuneration of employees in the financial year: 3.70 percent
c. The number of permanent employees on the rolls of Company: 424,285

d. Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:

The average annual increase was 6 percent in India. However, during the course of the year, the total increase is approximately 7.2 percent, after accounting for promotions and other event based compensation revisions. Employees outside India received a wage increase varying from 2 percent to 5 percent. The increase in remuneration is in line with the market trends in the respective countries.
Increase in the managerial remuneration for the year was 14.66 percent.

e. Affirmation that the remuneration is as per the remuneration policy of the Company:
The Company affirms that the remuneration is as per the remuneration policy of the Company.

f. The statement containing names of top ten employees in terms of remuneration drawn and the particulars of employees as required under Section 197(12) of the Act read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is provided in a separate annexure forming part of this report. Further, the report and the accounts are being sent to the Members excluding the aforesaid annexure. In terms of Section 136 of the Act, the said annexure is open for

136 of the Act, the said annexure is open for inspection at the Registered Office of the Company. Any Member interested in obtaining a copy of the same may write to the Company Secretary.

 |
| table | Name                         | Ratio to median remuneration | % increase in remuneration in the financial year
---------------------------- | ---------------------------- | ------------------------------------------------
Non-executive directors      |                              |
N Chandrasekaran@            | -                            | -
Aman Mehta                   | 51.55                        | 5.00
V Thyagarajan*               | ^                            | ^
Prof Clayton M Christensen** | ^                            | ^
Dr Ron Sommer                | 36.00                        | 4.76
O P Bhatt                    | 35.18                        | 7.50
Aarthi Subramanian@@         | -                            | -
Dr Pradeep Kumar Khosla      | 24.55                        | ^^
Hanne Sorensen***            | ^                            | ^
Keki Mistry***               | ^                            | ^
Don Callahan****             | ^                            | ^
Executive directors          |                              |
Rajesh Gopinathan            | 262.30                       | 28.31
N Ganapathy Subramaniam      | 190.01                       | 24.88
Chief Financial Officer      |                              |
Ramakrishnan V               | -                            | 22.58
Company Secretary            |                              |
Rajendra Moholkar            | -                            | 18.23 |


| _id | d1b2f7172 |
| title |  |
| text | We make contributions to our defined benefit plans as required under various pension funding regulations. We expect to make contributions of approximately
$1,420 to the international plans in fiscal 2020 based on current actuarial computations
Estimated future benefit payments are as follows:
Savings plans:
We sponsor retirement savings plans, which allow eligible employees to defer part of their annual compensation. Certain contributions by us are discretionary and

are determined by our Board of Directors each year. Our contributions to the savings plans in the United States for the fiscal years ended March 31, 2017, 2018 and 2019
were approximately $4,367, $4,421, and $4,913, respectively.
We also sponsor a nonqualified deferred compensation program, which permits certain employees to annually elect to defer a portion of their compensation until

retirement. A portion of the deferral is subject to a matching contribution by us. The employees select among various investment alternatives, which are the same as are
available under the retirement savings plans, with the investments held in a separate trust. The value of the participants’ balances fluctuate based on the performance of
the investments. The market value of the trust at March 31, 2018 and 2019 of $6,649 and $4,693, respectively, is included as an asset and a liability in our accompanying

balance sheet because the trust’s assets are both assets of the Company and a liability as they are available to general creditors in certain circumstances

 |
| table | Fiscal Year ended March 31, | US Plans | International Plans
--------------------------- | -------- | -------------------
2020                        | $2,295   | $7,055
2021                        | 2,333    | 7,197
2022                        | 2,353    | 7,337
2023                        | 2,371    | 7,624
2024                        | 2,388    | 7,624
2025-2029                   | 11,880   | 40,364 |


| _id | d1b349d0a |
| title |  |
| text | The following table summarizes information regarding common stock share awards granted and vested (in thousands, except per share award amounts):
As of December 31, 2019, there was $0.2 million of total unrecognized compensation costs, net of actual forfeitures, related to nonvested common stock share awards. This cost is expected to be recognized over a weighted average period of 0.8 years.

 |
| table | |        | Years Ended December 31, |
------------------------------------------------------ | ------ | ------------------------ | ------
                                                       | 2019   | 2018                     | 2017
Number of share awards granted                         | 34     | 34                       | 24
Weighted average grant-date fair value per share award | $25.41 | $27.68                   | $32.93
Fair value of share awards vested                      | $840   | $880                     | $850 |


| _id | d1b37fd6a |
| title |  |
| text | In connection with the asset-backed securitization programs, the Company recognized the following (in millions):
(1) The amounts primarily represent proceeds from collections reinvested in revolving-period transfers.
(2) Recorded to other expense within the Consolidated Statements of Operations.

(3) Excludes $650.3 million of trade accounts receivable sold, $488.1 million of cash and $13.9 million of net cash received prior to the amendment of the foreign asset-backed securitization program and under the previous North American asset-backed securitization program.

The asset-backed securitization programs require compliance with several covenants. The North American asset-backed securitization program covenants include compliance with the interest ratio and debt to EBITDA ratio of the five-year unsecured credit facility amended as of November 8, 2017 (“the 2017 Credit Facility”). The foreign asset-backed securitization program covenants include limitations on certain corporate actions such as mergers and consolidations. As of August 31, 2019 and 2018, the Company was

As of August 31, 2019 and 2018, the Company was in compliance with all covenants under the asset-backed securitization programs.

 |
| table | |         | Fiscal Year Ended August 31, |
--------------------------------------------------- | ------- | ---------------------------- | ------
                                                    | 2019(3) | 2018                         | 2017
Trade accounts receivable sold                      | $4,057  | $8,386                       | $8,878
Cash proceeds received(1)                           | $4,031  | $7,838                       | $8,300
Pre-tax losses on sale of receivables(2)            | $26     | $15                          | $9
Deferred purchase price receivables as of August 31 | $—      | $533                         | $569 |


| _id | d1b32b1f2 |
| title |  |
| text | 6.3 Changes in group structure
Discontinued operations
On 21 December 2018, the Group executed a share sale agreement to sell Infochoice Pty Ltd, a wholly owned subsidiary.

At 30 June 2019, Infochoice Pty Ltd was classified as a discontinued operation. The business of Infochoice Pty Ltd represented the Group’s financial services and products comparison operating segment. With Infochoice Pty Ltd being classified as a discontinued operation, its operating results are no longer presented in the segment note. The sale of Infochoice Pty Ltd was completed on 18 February 2019. The results of Infochoice Pty Ltd for the period are presented below:

 |
| table | | CONSOLIDATED   |
----------------------------------------------------- | -------------- | --------------
                                                      | JUN 2019 $’000 | JUN 2018 $’000
Revenue                                               | 426            | 1,208
Expenses                                              | (1,035)        | (989)
Operating income                                      | (609)          | 219
Interest revenue                                      | 5              | 9
Impairment of other intangible assets                 | (603)          | (16,902)
Profit/(loss) before tax from discontinued operations | (1,207)        | (16,674)
Tax benefit/(expense) related to current pre-tax loss | (1,150)        | (55)
Post-tax profit/(loss) of  discontinued operations    | (2,357)        | (16,729) |


| _id | d1b38ed06 |
| title |  |
| text | Fiscal 2018 Restructuring Plan

During Fiscal 2018 and in the context of our acquisitions of Covisint, Guidance and Hightail (each defined below), we began to implement restructuring activities to streamline our operations (collectively referred to as the Fiscal 2018 Restructuring Plan). The Fiscal 2018 Restructuring Plan charges relate to workforce reductions and facility consolidations. These charges require management to make certain judgments and estimates regarding the amount and timing of restructuring charges or recoveries. Our

of restructuring charges or recoveries. Our estimated liability could change subsequent to its recognition, requiring adjustments to the expense and the liability recorded. On a quarterly basis, we conduct an evaluation of the related liabilities and expenses and revise our assumptions and estimates as appropriate.

Since the inception of the plan, approximately $10.7 million has been recorded within "Special charges (recoveries)" to date. We do not expect to incur any further significant charges relating to this plan.
A reconciliation of the beginning and ending liability for the year ended June 30, 2019 and 2018 is shown below.

 |
| table | Fiscal 2018 Restructuring Plan                  | Workforce reduction | Facility costs | Total
----------------------------------------------- | ------------------- | -------------- | -------
Balance payable as at June 30, 2017             | $—                  | $—             | $—
Accruals and adjustments                        | 8,511               | 1,643          | 10,154
Cash payments                                   | (8,845)             | (489)          | (9,334)
Foreign exchange and other non-cash adjustments | 892                 | 11             | 903
Balance payable as at June 30, 2018             | $558                | $1,165         | $1,723
Accruals and adjustments                        | (20)                | 535            | 515
Cash payments                                   | (337)               | (928)          | (1,265)
Foreign exchange and other non-cash adjustments | (51)                | (286)          | (337)
Balance payable as at June 30, 2019             | $150                | $486           | $636 |


| _id | d1b337970 |
| title |  |
| text | Operating Revenues and Selected Operating Statistics
(1) Service and other revenues included in our Business segment amounted to approximately $27.9 billion and $28.1 billion for the years ended December 31, 2019 and 2018, respectively. Wireless equipment revenues included in our Business segment amounted to approximately $3.5 billion and $3.4 billion for the years ended December 31, 2019 and 2018, respectively. (2) As of end of period (3) Includes certain adjustments

Business revenues decreased $91 million, or 0.3%, during 2019 compared to 2018, primarily due to decreases in Global Enterprise and Wholesale revenues, partially offset by increases in Small and Medium Business and Public Sector and Other revenues.

Global Enterprise Global Enterprise offers services to large businesses, which are identified based on their size and volume of business with Verizon, as well as non-U.S. public sector customers. Global Enterprise revenues decreased $383 million, or 3.4%, during 2019 compared to 2018, primarily due to declines in traditional data and voice communication services as a result of competitive price pressures. These revenue decreases were partially offset by increases in wireless service revenue.

Small and Medium Business Small and Medium Business offers wireless services and equipment, tailored voice and networking products, Fios services, IP networking, advanced voice solutions, security and managed information technology services to our U.S.-based customers that do not meet the requirements to be categorized as Global Enterprise.

Small and Medium Business revenues increased $712 million, or 6.6%, during 2019 compared to 2018, primarily due to an increase in wireless postpaid service revenue of 11.7% as a result of increases in the amount of wireless retail postpaid connections.

These increases were further driven by increased wireless equipment revenue resulting from a shift to higher priced units in the mix of wireless devices sold and increases in the number of wireless devices sold, increased revenue related to our wireless device protection package, as well as increased revenue related to Fios services. These revenue increases were partially offset by revenue declines related to the loss of voice and DSL service connections.

Small and Medium Business Fios revenues totaled $915 million and increased $110 million, or 13.7%, during 2019 compared to 2018, reflecting the increase in total connections, as well as increased demand for higher broadband speeds.

Public Sector and Other Public Sector and Other offers wireless products and services as well as wireline connectivity and managed solutions to U.S. federal, state and local governments and educational institutions. These services include the business services and connectivity similar to the products and services offered by Global Enterprise, in each case, with features and pricing designed to address the needs of governments and educational institutions.

Public Sector and Other revenues increased $89 million, or 1.5%, during 2019 compared to 2018, driven by increases in networking and wireless postpaid service revenue as a result of an increase in wireless retail postpaid connections.

Wholesale Wholesale offers wireline communications services including data, voice, local dial tone and broadband services primarily to local, long distance, and wireless carriers that use our facilities to provide services to their customers. Wholesale revenues decreased $509 million, or 13.6%, during 2019 compared to 2018, primarily due to declines in core data and traditional voice services resulting from the effect of technology substitution and continuing contraction of market rates due to competition.

 |
| table | |          |          | (dollars in millions) Increase/ (Decrease) |
------------------------------------- | -------- | -------- | ------------------------------------------ | ------
Years Ended December 31,              | 2019     | 2018     | 2019 vs. 2018                              |
Global Enterprise                     | $ 10,818 | $ 11,201 | $ (383)                                    | (3.4)%
Small and Medium Business             | 11,464   | 10,752   | 712                                        | 6.6
Public Sector and Other               | 5,922    | 5,833    | 89                                         | 1.5
Wholesale                             | 3,239    | 3,748    | (509)                                      | (13.6)
Total Operating Revenues(1)           | $ 31,443 | $ 31,534 | $ (91)                                     | (0.3)
Connections (‘000):(2)                |          |          |                                            |
Wireless retail postpaid connections  | 25,217   | 23,492   | 1,725                                      | 7.3
Fios Internet connections             | 326      | 307      | 19                                         | 6.2
Fios video connections                | 77       | 74       | 3                                          | 4.1
Broadband connections                 | 489      | 501      | (12)                                       | (2.4)
Voice connections                     | 4,959    | 5,400    | (441)                                      | (8.2)
Net Additions in Period (‘000):(3)    |          |          |                                            |
Wireless retail postpaid              | 1,391    | 1,397    | (6)                                        | (0.4)
Wireless retail postpaid phones       | 698      | 625      | 73                                         | 11.7
Churn Rate:                           |          |          |                                            |
Wireless retail postpaid              | 1.24%    | 1.19%    |                                            |
Wireless retail postpaid phones       | 0.99%    | 0.98%    |                                            | |


| _id | d1b31ebd2 |
| title |  |
| text | Operational performance
A Leasing activity

We agreed 205 long-term leases in 2019, amounting to £26 million annual rent, at an average of 1 per cent above previous passing rent (like-for-like units) and in line with valuers’ assumptions. On a net effective basis (net of rent frees and incentives), rents were also 1 per cent ahead of previous rents. The upside from these new lettings added to like-for-like net rental income but was lower in magnitude than the negative impacts from administrations and CVAs and increased vacancy (see financial review

CVAs and increased vacancy (see financial review on pages 30 to 37).

Our customers continue to focus on increasing their space in prime, high footfall retail and leisure destinations. Significant activity in 2019 included:
—pureplay online brands starting to open stores to increase their physical presence. Morphe, the digital native cosmetics brand, opened three of its six UK stores at intu Victoria Centre, intu Eldon Square and Manchester Arndale, and AliExpress, the consumer platform of Alibaba, opened its first store in Europe at intu Xanadú

—Harrods taking its first shopping centre store, launching a new beauty concept, H Beauty, at intu Lakeside
—a new flagship store for Zara at St David’s, Cardiff, where it is moving into the centre from the high street. This follows the recent upsizing of stores at intu Trafford Centre and intu Lakeside

—leisure brands increasing their space with Puttshack to open its fourth venue at intu Watford, following its successful opening at intu Lakeside. Namco is expanding its range of attractions at intu Metrocentre with Clip ‘n Climb and the first Angry Birds Adventure Golf in the UK and Rock Up is taking space at intu Lakeside
—international fashion brands continuing to expand in the UK with Spanish brand Mango due to open at intu Watford a
B Investment by customers

B Investment by customers
In the year, 256 units opened or refitted in our centres (2018: 262 stores), representing around 8 per cent of our 3,300 units. Our customers have invested around £125 million in these stores, which we believe is a significant demonstration of their long-term commitment to our centres.
C Rent reviews
We settled 159 rent reviews in 2019 for new rents totalling £45 million, an average uplift of 6 per cent on the previous rents.
D Occupancy

D Occupancy
Occupancy was 94.9 per cent, in line with June 2019 (95.1 per cent), but a reduction against 31 December 2018 (96.7 per cent), impacted by units closed in the first half of 2019 from tenants who went into administration or through a CVA process in 2018. This had a 3.7 per cent negative impact on like-for-like net rental income in 2019 from both rents foregone and increased void costs.
E Weighted average unexpired lease term

E Weighted average unexpired lease term
The weighted average unexpired lease term was 6.3 years (31 December 2018: 7.2 years) illustrating the longevity of our income streams. The reduction against the prior year was primarily due to new lease terms on department stores that have been through a CVA or administration process.
F Footfall

F Footfall
Footfall in our centres increased by 0.3 per cent in the year. UK footfall was flat, significantly outperforming the Springboard footfall monitor for shopping centres which was down on average by 2.5 per cent. We believe this highlights the continued attraction of our compelling destinations against the wider market. In Spain, footfall was up by 3.5 per cent.
G Retailer sales

G Retailer sales
Estimated retailer sales in our UK centres, which totalled £5.2 billion in 2019, were down 1.6 per cent, impacted by some larger space users who have had difficulties and been through CVAs and those brands who operate successful multichannel models where in-store sales figures take no account of the benefit of the store to online sales. This compares favourably to the British Retail Consortium (BRC), where non-food retailer sales in-store were down 3.1 per cent on average in 2019.

The ratio of rents to estimated sales for standard units remained stable in 2019 at 12.0 per cent. This does not take into account the benefit to the retailer of their multichannel business, such as click and collect.
H Net promoter score
Our net promoter score, a measure of visitor satisfaction, ran consistently high throughout 2019 averaging 75, an increase of 2 over 2018. Visitor satisfaction is paramount to a shopper’s likelihood to visit, which in turn drives footfall and extended dwell time.

I Gross value of community investment
Gross value added, the measure of the economic contribution of intu to the local communities in the UK, remained stable in the year at £4.8 billion.
J Carbon emission intensity reduction

J Carbon emission intensity reduction
Annual reduction in carbon emission intensity has reduced in 2019. This is due to our continued focus on energy efficiency to reduce our overall energy demand each year, supported by the ongoing greening of the electricity grid as we become less reliant on coal and increase our renewable generation.

Our 2020 target was to reduce carbon emission intensity by 50 per cent, against a 2010 baseline. We reached this target three years ahead of plan and at the end of 2019, our reduction total was 69 per cent.

 |
| table | | Notes | 2019      | 201
--------------------------------------------------------- | ----- | --------- | --------
Leasing activity                                          | A     |           |
— number                                                  |       | 205       | 24
— new rent                                                |       | £26m      | £39m
— new rent relative to previous passing rent              |       | +1%       | +6%
Investment by customers                                   | B     | £125m     | £144m
Rental uplift on rent reviews settled                     | C     | +6%       | +7%
Occupancy (EPRA basis)                                    | D     | 94.9%     | 96.7%
— of which, occupied by tenants trading in administration |       | 2.8%      | 2.0%
Unexpired lease term                                      | E     | 6.3 years | 7.2 year
Footfall                                                  | F     | +0.3%     | –1.6%
Retailer sales                                            | G     | –1.6%     | –2.3%
Net promoter score                                        | H     | 75        | 7
Gross value added of community investment                 | I     | £4.8bn    | £4.8b
Carbon emission intensity reduction                       | J     | 15%       | 17% |


| _id | d1b3ad774 |
| title |  |
| text | Asset position of METRO AG
ASSETS

As of the closing date, METRO had total assets of €18,221 million, which are predominantly comprised of financial assets in the amount of €9,005 million, receivables from affiliated companies at €8,214 million and the usufructuary rights to the METRO and MAKRO brands which were recognised as an intangible asset (€883 million). Cash on hand, bank deposits and cheques amounted to €44 million. The financial assets predominantly consist of shares held in affiliated companies in the amount of €8,964 million

companies in the amount of €8,964 million which are essentially comprised of shares in the holding for wholesale companies (€6,693 million), in real estate companies (€1,278 million), in service providers (€470 million) and in other companies (€523 million). The financial assets account for 49.4% of the total assets. Receivables from affiliated companies amount to €8,214 million. This corresponds to 45.1% of the total assets. This position contains €6,117 million in receivables from a group-internal

million in receivables from a group-internal transfer of shares in affiliated companies at their carrying values and predominantly reflects the short-term financing requirements of the group companies as of the closing date.

 |
| table | € million                               | 30/9/2018 | 30/9/2019
--------------------------------------- | --------- | ---------
Non-current assets                      |           |
Intangible assets                       | 1,001     | 939
Tangible assets                         | 2         | 3
Financial assets                        | 9.157     | 9,005
                                        | 10.160    | 9,947
Current assets                          |           |
Receivables and other assets            | 6,882     | 8,218
Cash on hand, bank deposits and cheques | 335       | 44
                                        | 7,217     | 8,262
Deferred income                         | 12        | 12
                                        | 17,389    | 18,221 |


| _id | d1b3c88b2 |
| title |  |
| text | The following table presents the basic and diluted weighted-average number of shares of common stock (amounts in thousands, except per share data):
(1) Fiscal years ending March 31, 2018 and 2017 adjusted due to the adoption of ASC 606.

 |
| table | |          | Fiscal Years Ended March 31, |
------------------------------------------- | -------- | ---------------------------- | -------
                                            | 2019     | 2018                         | 2017
Numerator                                   |          |                              |
Net income (1)                              | $206,587 | $254,127                     | $47,157
Denominator:                                |          |                              |
Weighted-average common shares outstanding: |          |                              |
Basic                                       | 57,840   | 52,798                       | 46,552
Assumed conversion of employee stock grants | 1,242    | 2,291                        | 2,235
Assumed conversion of warrants              | —        | 3,551                        | 6,602
Diluted                                     | $59,082  | $58,640                      | $55,389
Net income per basic share (1)              | $3.57    | $4.81                        | $1.01
Net income per diluted share (1)            | $3.50    | $4.33                        | $0.85 |


| _id | d1b2f6e52 |
| title |  |
| text | Results of Operations
(2) Operating expenses include stock-based compensation expense as follows (in thousands):

 |
| table | |         | Year Ended December 31, |
-------------------------------------- | ------- | ----------------------- | ------
                                       | 2019    | 2018                    | 2017
Stock-based compensation expense data: |         |                         |
Sales and marketing                    | $2,075  | $1,196                  | $561
General and administrative             | 6,474   | 4,901                   | 2,638
Research and development               | 12,054  | 7,332                   | 4,214
Total stock-based compensation expense | $20,603 | $13,429                 | $7,413 |


| _id | d1b2ffb10 |
| title |  |
| text | Cogeco Communications is a subsidiary of Cogeco, which holds 31.8% of the Corporation's equity shares, representing 82.3% of the Corporation's voting shares.

Cogeco provides executive, administrative, financial and strategic planning services and additional services to the Corporation under a Management Services Agreement (the "Agreement"). On May 1, 2019, the Corporation and Cogeco agreed to amend the Agreement in order to replace the methodology used to establish the management fees payable by the Corporation to Cogeco, which was based on a percentage of the consolidated revenue of the Corporation, with a new methodology based on the costs incurred by Cogeco

methodology based on the costs incurred by Cogeco plus a reasonable mark-up. This cost-plus methodology was adopted to avoid future variations of the management fee percentage due to the frequent changes of the Corporation's consolidated revenue pursuant to business acquisitions and divestitures. Prior to this change, management fees represented 0.75% of the consolidated revenue from continuing and discontinued operations of the Corporation (0.85% for the period prior to the MetroCast acquisition on

the period prior to the MetroCast acquisition on January 4, 2018). Provision is made for future adjustment upon the request of either Cogeco or the Corporation from time to time during the term of the Agreement. For fiscal 2019 management fees paid to Cogeco amounted to $19.9 million, compared to $19.0 million for fiscal 2018.

Provision is made for future adjustment upon the request of either Cogeco or the Corporation from time to time during the term of the Agreement. For fiscal 2019 management fees paid to Cogeco amounted to $19.9 million, compared to $19.0 million for fiscal 2018.
The following table shows the amounts that the Corporation charged Cogeco with regards to the Corporation's stock options, ISUs and PSUs granted to these executive officers, as well as DSUs issued to Board directors of Cogeco:

 |
| table | Years ended August 31,             | 2019  | 2018
---------------------------------- | ----- | ----
(In thousands of Canadian dollars) | $     | $
Stock options                      | 1,046 | 915
ISUs                               | 61    | 1
PSUs                               | 981   | 990
DSUs                               | 631   | — |


| _id | d1b39d63a |
| title |  |
| text | Geographic Information

(1) Amounts by geography have been reclassified from prior year disclosure to reflect adjustments to our regional operating model. As of January 1, 2019, our geographic regions are: North America, EMEA, South America and APAC. Our North American operations include Canada, the United States, Mexico and Central America. Mexico and Central America were previously included in Latin America. Refer to Note 2, "Summary of Significant Accounting Policies and Recently Issued Accounting Standards," of the Notes to

Issued Accounting Standards," of the Notes to Consolidated Financial Statements.

(2) No non-U.S. country accounted for net sales in excess of 10% of consolidated net sales for the years ended December 31, 2019, 2018 or 2017 or long-lived assets in excess of 10% of consolidated long-lived assets at December 31, 2019 and 2018.
(3) Net sales to external customers within the U.S. were $2,501.6 million, $2,402.3 million and $2,280.0 million for the years ended December 31, 2019, 2018 and 2017, respectively.

(4) Total long-lived assets represent total assets excluding total current assets, deferred tax assets, goodwill, intangible assets and non-current assets held for sale.

 |
| table | |           | Year Ended December 31, |
--------------------------------- | --------- | ----------------------- | ---------
(In millions)                     | 2019      | 2018                    | 2017
Net sales(1)(2):                  |           |                         |
North America(3)                  | $ 2,828.1 | $ 2,734.9               | $ 2,591.5
EMEA                              | 1,010.4   | 1,038.5                 | 983.4
South America                     | 233.8     | 229.5                   | 231.8
APAC                              | 718.8     | 729.8                   | 654.9
Total                             | $ 4,791.1 | $ 4,732.7               | $ 4,461.6
Total long-lived assets(1)(2)(4): |           |                         |
North America                     | $ 919.3   | $ 740.5                 |
EMEA                              | 345.8     | 270.5                   |
South America                     | 50.2      | 52.8                    |
APAC                              | 248.3     | 211.8                   |
Total                             | $ 1,563.6 | $ 1,275.6               | |


| _id | d1b3202c0 |
| title |  |
| text | For 2019, we reported a net income of $1,032 million, compared to a net income of $1,287 million and $802 million for 2018 and 2017, respectively.
The 2019 net income represented diluted earnings per share of $1.14 compared to $1.41 and $0.89 for 2018 and 2017, respectively.

 |
| table | |        | Year Ended December 31, |
----------------------------------------- | ------ | ----------------------- | ----
                                          | 2019   | 2018                    | 2017
                                          |        | (In millions)           |
Net income attributable to parent company | $1,032 | $1,287                  | $802
As percentage of net revenues             | 10.8%  | 13.3%                   | 9.6% |


| _id | d1b39616e |
| title |  |
| text | Unearned Revenue
Unearned revenue as of the periods presented consisted of the following (table in millions):

Unearned subscription and SaaS revenue is generally recognized over time as customers consume the services or ratably over the term of the subscription, commencing upon provisioning of the service. Previously, unearned subscription and SaaS revenue was allocated between unearned license revenue and unearned software maintenance revenue in prior periods and has been reclassified to conform with current period presentation.

Unearned software maintenance revenue is attributable to VMware’s maintenance contracts and is generally recognized over time on a ratable basis over the contract duration. The weighted-average remaining contractual term as of January 31, 2020 was approximately two years. Unearned professional services revenue results primarily from prepaid professional services and is generally recognized as the services are performed.

Total billings and revenue recognized during the year ended January 31, 2020, were $8.1 billion and $6.4 billion, respectively, and did not include amounts for performance obligations that were fully satisfied upon delivery, such as on-premise licenses. During the year ended January 31, 2020, VMware assumed $154 million in unearned revenue in the acquisition of Carbon Black, Inc. (“Carbon Black”).

Total billings and revenue recognized during the year ended February 1, 2019, were $6.9 billion and $5.5 billion, respectively, and did not include amounts for performance obligations that were fully satisfied upon delivery, such as on-premise licenses.
Revenue recognized during the year ended February 2, 2018 was $4.8 billion and did not include amounts for performance obligations that were fully satisfied upon delivery, such as on-premise licenses.

 |
| table | | January 31, 2020 | February 1, 2019
-------------------------------------- | ---------------- | ----------------
Unearned license revenue               | $19              | $15
Unearned subscription and SaaS revenue | 1,534            | 916
Unearned software maintenance revenue  | 6,700            | 5,741
Unearned professional services revenue | 1,015            | 767
Total unearned revenue                 | $9,268           | $7,439 |


| _id | d1b38b976 |
| title |  |
| text | ALTERNATIVE PERFORMANCE MEASURES
Gross profit:
TORM defines Gross profit, a performance measure, as revenue less port expenses, bunkers and commissions, charter hire and operating expenses. The Company reports Gross profit because we believe it provides additional meaningful information to investors, as Gross profit measures the net earnings from shipping activities. Gross profit is calculated as follows:

 |
| table | USDm                                   | 2019   | 2018   | 2017
-------------------------------------- | ------ | ------ | ------
Reconciliation to revenue              |        |        |
Revenue                                | 692.6  | 635.4  | 657.0
Port expenses, bunkers and commissions | -267.7 | -283.0 | -259.9
Charter hire                           | -      | -2.5   | -8.5
Operating expenses                     | -173.0 | -180.4 | -188.4
Gross profit                           | 251.9  | 169.5  | 200.2 |


| _id | d1b382c04 |
| title |  |
| text | 12. RESTRICTED CASH AND SHORT-TERM DEPOSITS
Our restricted cash and short-term deposits balances are as follows:

(1) Restricted cash relating to the share repurchase forward swap refers to the collateral required by the bank with whom we entered into a total return equity swap. Collateral of 20% of the total purchase price is required and this is subsequently adjusted with reference to the Company's share price. In November 2019, we purchased 1.5 million shares underlying the total return equity swap that resulted in $54.7 million of restricted cash being released (see note 24).

(2) In November 2015, in connection with the issuance of a $400 million letter of credit by a financial institution to our project partner involved in the Hilli FLNG project, we posted an initial cash collateral sum of $305.0 million to support the performance guarantee.

Under the provisions of the $400 million letter of credit, the terms allow for a stepped reduction in the value of the guarantee over time and thus, conversely, a reduction in the cash collateral requirements. In 2017, the $400 million letter of credit and the cash collateral requirement was reduced to $300 million and $174.6 million, respectively, with no further reduction in 2018. In 2019, the letter of credit was reduced to $250.0 million and a contractual amendment further reduced the letter of credit

amendment further reduced the letter of credit to $125.0 million and the cash collateral to $76.0 million. There is no further contractual reduction expected until 2021.

In November 2016, after certain conditions precedent were satisfied by the Company, the letter of credit required in accordance with the signed LTA was re-issued and, with an initial expiry date of December 31, 2018, the letter of credit automatically extends, on an annual basis, until the tenth anniversary of the acceptance date of the Hilli by the charterer, unless the bank should exercise its option to exit from this arrangement by giving three months' notice prior to the annual renewal date.

(3) These are amounts held by lessor VIE entities that we are required to consolidate under U.S. GAAP into our financial statements as VIEs (see note 5).
(4) This refers to cash deposits required under the $1.125 billion debt facility (see note 18). The covenant requires that, on the second anniversary of drawdown under the facility, where we fall below a prescribed EBITDA to debt service ratio, additional cash deposits with the financial institution are required to be made or maintained.

(5) Collateral held against the Margin Loan facility is required to satisfy one of the mandatory prepayment events within the facility, with this having been triggered when the closing price of the Golar Partners common units pledged by us as security for the obligations under the facility fell below a defined threshold. If certain requirements are met, the facility allows for the release of the collateral (see note 18).

Restricted cash does not include minimum consolidated cash balances of $50.0 million (see note 18) required to be maintained as part of the financial covenants for our loan facilities, as these amounts are included in "Cash and cash equivalents".

 |
| table | (in thousands of $)                                                       | 2019      | 2018
------------------------------------------------------------------------- | --------- | ---------
Restricted cash relating to the total return equity swap (1)              | 55,573    | 82,863
Restricted cash in relation to the Hilli (2)                              | 75,968    | 174,597
Restricted cash and short-term deposits held by lessor VIEs (3)           | 34,947    | 176,428
Restricted cash relating to the $1.125 billion debt facility (4)          | 10,975    | 17,657
Collateral on the Margin Loan facility (5)                                | 10,000    | 33,413
Restricted cash relating to office lease                                  | 826       | 777
Bank guarantee                                                            | —         | 691
Total restricted cash and short-term deposits                             | 188,289   | 486,426
Less: Amounts included in current restricted cash and short-term deposits | (111,545) | (332,033) |


| _id | d1b31c670 |
| title |  |
| text | NOTE 4 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accounts payable and accrued expenses consist of the following at:
On October 1 2019, the Company entered into an agreement with a consultant for toxicology studies. The consultant quoted a commitment of approximately $988,000 as an
estimate for the study. 50% of the total price is to be paid upon the signing of the agreement, 35% of the total price is to be upon completion of the in-life study, and the

remaining 15% of the total price is to be paid upon the issuance of the report. If the Company cancels the study the Company will be required to pay a cancelation fee. If the
cancelation happens prior to the arrival of the test animals then the Company will need to pay between 20% and 50% of the animal fees depending on when the cancellation

happens. If the cancellation occurs after the animals arrive but before the study begins then the company will be responsible for paying 50% of the protocol price plus a fee of

$7,000 per room/week for animal husbandry until the animals can be relocated or disposed of. If the Company cancels the study after it has begun then the Company will need to pay any fees for procured items for the study and any nonrecoverable expenses incurred by the vendor. As of December 31, 2019, the Company has paid $0 and there is a balance of $493,905 due.

 |
| table | | December 31, 2019 | December 31, 2018
------------------------ | ----------------- | -----------------
Accounting               | $36,161           | $52,365
Research and development | 650,584           | 137,114
Legal                    | 15,273            | 32,161
Other                    | 163,029           | 10,048
Total                    | $865,047          | $231,688 |


| _id | d1b320716 |
| title |  |
| text | 27 Financial risk management (continued)
The table below summarises the Group’s exposure to foreign exchange risk as well as the foreign exchange rates applied:

The approximate impact of a 10 per cent appreciation in foreign exchange rates would be a positive movement of £50.0 million (2018: £63.4 million) to equity attributable to owners of the Group. The approximate impact of a 10 per cent depreciation in foreign exchange rates would be a negative movement of £40.9 million (2018: £51.9 million) to equity attributable to owners of the Group. There is no material income statement impact as these exchange differences are recognised in other comprehensive income.

As part of the strategy to mitigate the Group’s exposure to foreign exchange risk, the Group is able to borrow part of its RCF in euros, up to €100 million. The RCF borrowings denominated in euros have been designated as a hedging instrument (net investment hedge) against the Group’s net investment in Spain with the hedged risk being the changes in the euro/pounds sterling spot rate that will result in changes in the value of the Group’s net investments in Spain. At 31 December 2019, €100 million (2018:

Spain. At 31 December 2019, €100 million (2018: €100 million) was drawn in euros.

 |
| table | | 2019   | 2018   | 2019    | 2018
--------------------- | ------ | ------ | ------- | -------
                      | €m     | €m     | INRm    | INRm
Net exposure          | 468.9  | 555.7  | 5,072.4 | 6,274.5
Foreign exchange rate | 1.1825 | 1.1126 | 94.4586 | 88.3432 |


| _id | d1b2e87c6 |
| title |  |
| text | NOTE 7. INVENTORIES
The following table details the components of inventories (in thousands).

 |
| table | | December 31 |
-------------- | ----------- | -----
               | 2019        | 2018
Finished goods | $698        | $853
Raw materials  | 90          | 3
Packaging      | 110         | 102
Inventories    | $ 898       | $ 958 |