Debt investors

"We always look to the long-term in the business. Our responsibility is to strike the right balance between building our balance sheet strength, investing in the future of the business, and the level of Partnership Bonus paid to Partners."

Patrick Lewis, Group Finance Director, 2017 Annual Report and Accounts

Financial sustainability and KPIs

Financial sustainability is one of the three strands of our Partnership strategy.  We measure our financial sustainabilty through three KPIs; Return on invested capital, Profit per average FTE and Debt ratio.

Debt ratio – Total indebtedness to Adjusted FFO

Total indebtedness as a multiple of adjusted funds from operations (Adjusted FFO). Total indebtedness represents the total borrowings of the Partnership including net debt adjusted for an estimate of non-liquid cash, the IAS 19 pension deficit net of deferred tax, and the present value of future rentals payable under operating leases. Adjusted FFO is cash generated from operations before Partnership Bonus less spend on tax and total finance costs, which includes implied interest on operating leases.

Debt ratio graph

Return on invested capital (ROIC) %

Post tax profit, adjusted for non-operating and exceptional items as a proportion of average operating net assets, adjusted to reflect a deemed capital value for property lease rentals

Return on invested capital (ROIC) %

Partnership profit per average FTE £000

Profit before Partnership Bonus, tax and exceptional items, divided by the average number of full time equivalent.

Partnership profit per average FTE £000
 
 
Further information on our Financial Sustainability strategy can be found in the John Lewis Partnership Annual Report and Accounts 2017.

The John Lewis Partnership holds three corporate bonds which are listed on the stock exchange. This section holds information which will be relevant and helpful to our bondholders, as well as our Partners.

Issuing Company Issued Date Maturity Date Issued Amount Coupon Minimum Denominations Listed
John Lewis Plc Apr 09 Apr 19 £275m 8.375% £75,000 London Stock Exchange
John Lewis Plc Jul 10 Jan 25 £300m 6.125% £50,000 London Stock Exchange
John Lewis Plc Dec 14 Dec 34 £300m 4.250% £100,000 London Stock Exchange