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De|ivering growth
through Transformation
lTV plc Annual PeporI and AccounIs
Ior Ihe year ended 31 Decenber 2012
SIock code. lTV
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Directors' Peport
The DirecIors' PeporI explains in deIail how we have perIorned Ihis year and seIs ouI a Iair review oI Ihe business, a balanced and conprehensive analysis
oI our perIornance, Ihe use oI Inancial and non-Inancial key perIornance indicaIors Io explain how nuch progress we have nade, a descripIion oI Ihe
principal risks and uncerIainIies Iacing Ihe Conpany, and an indicaIion oI likely IuIure developnenIs.
The DirecIors' PeporI is prepared in line wiIh Ihe relevanI provisions oI Ihe Conpanies AcI 2006. ln preparing Ihe DirecIors' PeporI Ihe Conpany has had
regard Io Ihe guidance issued by Ihe AccounIing SIandards Board in iIs PeporIing SIaIenenI on narraIive reporIing. The DirecIors' PeporI is inIended Io
provide shareholders wiIh a greaIer undersIanding oI Ihe Conpany, oI iIs posiIion in Ihe narkeIs wiIhin which iI operaIes, and oI iIs prospecIs.
ln seIIing ouI Ihe Conpany's nain risks and uncerIainIies, an indicaIion oI likely IuIure developnenIs, and in oIher conIenI, Ihis reporI and accounIs conIains
sIaIenenIs which, by Iheir naIure, cannoI be considered indicaIions oI likelihood or cerIainIy. The sIaIenenIs are based on Ihe knowledge and inIornaIion
available aI Ihe daIe oI preparaIion oI Ihe DirecIors' PeporI, and whaI are believed Io be reasonable judgenenIs. A wide range oI IacIors nay cause Ihe
acIual ouIcones and resulIs Io diIIer naIerially Iron Ihose conIained wiIhin, or inplied by, Ihese various Iorward-looking sIaIenenIs. None oI Ihese
sIaIenenIs should be consIrued as a proII IorecasI.
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Look out for these icons
View nore content online Pead nore content wiIhin Ihis reporI
Corporate Website
We maintain a corporate website at www.itvp|c.com containing a
wide range of information of interest to institutiona| and private
investors inc|uding:
- laIesI news and press releases
- Annual reporIs and invesIor presenIaIions
Scan Ihe QP Code Io
Iake you direcIly Io our
corporaIe websiIe
See IurIher conIenI Ior Ihe
2012 Annual PeporI online
aI ar2012.itvp|c.com
licIured.
lronI Cover
Mr SelIridge
Cverview
Who We Are 02
Our lnvesIor lroposiIion 04
2012 Key lighlighIs 05
Chairnan's SIaIenenI 06
Directors' Peport
5trategy & Cperations
CL0 Peview 10
lerIornance Dashboard 14
5trategic Priority 1 16
5trategic Priority 2 20
5trategic Priority 3 24
5trategic Priority 4 2S

Performance & Financia|s
Key lerIornance lndicaIors 34
linancial and lerIornance Peview 36
Pisks and UncerIainIies 4S
Pesponsibi|ity
OperaIing Pesponsibly 52
Governance
Board oI DirecIors 5S
ManagenenI Board 60
Chairnan's Governance SIaIenenI 62
CorporaIe Governance 63
AudiI ConniIIee PeporI 70
PenuneraIion PeporI 75
OIher Governance and SIaIuIory Disclosures S9
SIaIenenI oI DirecIors' PesponsibiliIies 91
Financia| 5tatements
lndependenI AudiIor's PeporI 94
lnIroducIion and Table oI ConIenIs 95
ConsolidaIed lncone SIaIenenI 96
ConsolidaIed SIaIenenI oI
Conprehensive lncone 97
ConsolidaIed SIaIenenI oI linancial losiIion 9S
ConsolidaIed SIaIenenI oI Changes in LquiIy 99
ConsolidaIed SIaIenenI oI Cash llows 101
NoIes Io Ihe AccounIs 102
SecIion 1. Basis oI lreparaIion 102
SecIion 2. PesulIs Ior Ihe Year 107
SecIion 3. OperaIing AsseIs and liabiliIies 115
SecIion 4. CapiIal SIrucIure and linancing CosIs 136
SecIion 5. OIher NoIes 150
lTV plc Conpany linancial SIaIenenIs 152
NoIes Io Ihe lTV plc Conpany
linancial SIaIenenIs 153
Shareholder lnIornaIion 157
linancial Pecord 160
Glossary IBC
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UK 5hare of Broadcast
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|TV p|c: 5.8%
UK 5hare of Viewing (5CV)
|TV Fami|y: 22.3%
Tota| UK Advertising
TV: 28.1%
The lTV broadcasI neIwork is nade
up oI lTV Ihe largesI connercial
channel in Ihe UK and Ihe digiIal
channels lTV2, lTV3, lTV4 and ClTV.
lTV2 and lTV3 are Ihe largesI digiIal
channels in Ihe UK. The lTV lanily
oI channels aIIracIs Ihe largesI
audience oI any UK broadcasIer oIher
Ihan Ihe BBC, wiIh a 22.3% Share oI
Viewing, and has Ihe largesI share oI
Ihe UK Ielevision adverIising narkeI
aI 45.8%.
lor viewers, lTV conpeIes wiIh
Ihe BBC and oIher connercial
broadcasIers predoninanIly C4,
C5 and Sky. lor adverIising revenue,
lTV conpeIes wiIh connercial
broadcasIers and oIher adverIising
nedia, such as Ihe lnIerneI and
lress. Over Ihe lasI Iew years
Ielevision has broadly nainIained
iIs share oI IoIal adverIising spend,
whilsI Ihe lnIerneI, which is growing
rapidly, conIinues Io Iake share Iron
lress.
lTV also delivers progranning across
nulIiple plaIIorns eiIher Ihrough
lTV llayer which allows users Io
access caIch up services, Ior exanple
on Virgin and Sky, or Ihrough
conIenI deals, Ior exanple NeIIix
and loveliln. lTV conIenI is now
available on 15 plaIIorns. Online, lay
and lnIeracIive revenues are sourced
Ihrough adverIising and Ihrough pay
deals Ior eiIher our enIire schedule or
Ior selecIed progrannes wiIhin our
caIalogue.
* lncludes sales by Sky Ior non-Sky owned channels.
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lnIernaIional producIion bases.
lTV SIudios UK
lTV SIudios Anerica
lTV SIudios AusIralia
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lTV SIudios Gernany
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lTV SIudios is Ihe largesI
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producing over 3,000 hours
oI original conIenI each year IeaIuring
Drana, lacIual and LnIerIainnenI, and
has an archive oI around 35,000 hours.
lI conprises lTV's UK and lnIernaIional
producIion conpanies and Global
LnIerIainnenI lTV's inIernaIional
disIribuIion business. ln 2012 we nade
a nunber oI sIraIegic acquisiIions Io
sIrengIhen Ihese businesses.
lTV SIudios UK produces progranning
Ior lTV's own channels and Ior oIher
UK broadcasIers such as BBC, C4, C5
and Sky. lTV's lnIernaIional producIion
business has Ive bases US, AusIralia,
Gernany, lrance and Ihe Nordics, who
produce Ior local broadcasIers in Ihese
regions. Global LnIerIainnenI licenses
lTV's Inished progrannes and IornaIs
and Ihird parIy conIenI inIernaIionally.
ln Ihe UK and inIernaIionally we
conpeIe wiIh a large nunber oI
independenI producers, which range
in size Iron Ihe super-indies such
as lrenanIle and Lndenol, Io a
large nunber oI snall independenI
producers. They are largely privaIely
owned and do noI have Ihe advanIage
IhaI lTV has oI being an inIegraIed
producer broadcasIer.
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conIenI which we can nake Ianous
on our channels, beIore exploiIing iIs
value across nulIiple plaIIorns, Iree
and pay, in Ihe UK and inIernaIionally.
lTV operaIes in an evolving digiIal
narkeI in which advances in
Iechnology are changing Ihe way
people consune nedia. ln spiIe oI
Ihe rapid increase in online viewing,
linear viewing renains robusI. The
proliIeraIion oI enIerIainnenI
plaIIorns and Ihe increasingly
conpeIiIive naIure oI Ihe broadcasIing
indusIry is creaIing denand Ior qualiIy
and proven conIenI and IornaIs IhaI
Iravel. As an inIegraIed producer
broadcasIer, wiIh sIrong channel
brands and Ihe abiliIy Io creaIe
conIenI, we are in a unique posiIion Io
be able Io execuIe on our sIraIegy.
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Facts and Figures - 2012 vs 2011
3%
Increase in digita|
channe|'s 5hare of
Viewing (5CV)
26%
Increase in Cn|ine,
Pay and Interactive
revenue
22%
Growth in |ong form
video requests
16%
Increase in ITV
5tudio's revenues
Group externa| revenues
2,196m
(2011: 2,10m)
Adjusted profit before tax
6m
(2011: 398m)
Non-NAP revenues*
1,036m
(2011: 922m)
Adjusted EP5
9.2p
(2011: 7.9p)
EBITA before exceptiona|s
520m
(2011: 62m)
Net cashl(debt)
206m
(2011: 5m)
* Non-NAP revenues inc|ude a|| |TV revenues, both interna| and externa|, except net advertising revenues.
Peported proht before tax is 38 mi||ion Peported LP5 is 6.9p
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SIock code. lTV
G)0$*;0"H# 7(0(&;&"(
Archie Norman
Dear 5hareho|der
lI is now over Ihree years since
l joined lTV as Chairnan. Adan
Crozier Iook over as ChieI LxecuIive
shorIly aIIerwards and seI ouI Ihe
TransIornaIion llan Io nake lTV a
nore robusI, beIIer balanced business
wiIh longer Iern growIh poIenIial.
Since IhaI Iine, nuch has been
achieved, and Ihe plan is sIill as
relevanI Ioday as iI was Ihen and
Ihe IransIornaIion progranne is
Iar Iron over.
The business has delivered good
progress in proII, cash and shareholder
reIurns. This is clearly a resulI oI
beIIer operaIing perIornance, IighIer
nanagenenI oI cosIs and nore
eIIecIive execuIion. BuI perhaps even
nore inporIanIly, a new balance Io
Ihe business is energing wiIh sIrong
growIh in Ihe lTV SIudios UK and
inIernaIional conIenI business, and
Ihe developnenI oI a signiIcanI
growing online and pay business.
WhilsI Ihe IradiIional UK 'Iree Io air'
broadcasI business is looking nuch
nore robusI Ihan iI did Ihree years ago,
lTV is increasingly developing oIher
proII growIh opporIuniIies and is
less dependenI on Ihe UK adverIising
narkeI.
The changing nedia Iechnology
landscape neans iI is inperaIive
IhaI Ihe pace oI change conIinues.
AlIhough viewer appeIiIe Ior greaI
Ielevision is as sIrong as ever, Ihe
way in which people are waIching
has changed and will conIinue Io
change in years Io cone wiIh nore
caIch up", nore nobile viewing,
nore nulIi screen viewing and Ihe roll
ouI oI connecIed Ielevision. These
developnenIs presenI opporIuniIies
Ior exploiIing our conIenI in diIIerenI
?&4$:&*$"< <*,@()
Pictured:
laul O'Grady. lor Ihe love
oI Dogs (leII)
K/, )4* L/7* /< M/+& 8/(
N/&) >/.05', K'1)0'5
O()*,)'%(6*() .,/+,'66*
ct t|e 2013 N1/ cwcros
Our people
renain key Io
lTV and Io Ihe
delivery oI Ihe
TransIornaIion
llan
06
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ways as well as challenges Io
convenIional broadcasIing. Good
progress has been nade buI Ihere
renains nuch work Io be done Io
ensure lTV is well placed Io grow in Ihis
new landscape.
The sIrong progress in reshaping
Ihe business has been driven by
Iar reaching changes in people,
nanagenenI and organisaIion. lTV's
conpeIiIiveness depends on iIs abiliIy
Io aIIracI and inIegraIe sIrong creaIive
and connercial IalenI.
Over Ihe lasI Ihree years Ihe Iop Iean
has been greaIly sIrengIhened and Ihe
pace oI change conIinues IhroughouI
Ihe organisaIion. WiIh IhaI Ihere is
energing a new lTV culIure, nore
Iorward looking, nore One lTV" and
nore inIernaIional Ihan in Ihe pasI.
We have nade a nunber oI very
IargeIed acquisiIions, noIably Gurney
lroducIions in Ihe USA and we will
conIinue Io look aI selecIive
opporIuniIies in line wiIh our global
conIenI sIraIegy. Our approach Io
assessing wheIher Io acquire new
businesses is driven by boIh sIricI
Inancial criIeria and an assessnenI
oI Ihe creaIive pipeline poIenIial and
culIural II wiIh our organisaIion.
As a resulI oI Ihe inprovenenI in Ihe
operaIional perIornance oI lTV, cosI
reducIion and IighI cash nanagenenI,
our balance sheeI is unrecognisable
Iron Ihree years ago. Given Ihe
uncerIain UK adverIising narkeI and
Ihe poIenIial need Io invesI Io secure
IuIure growIh, we inIend Io reIain a
conservaIive balance sheeI. AI Ihe
sane Iine we are conniIIed Io driving
shareholder value. These consideraIions
inIorned Ihe Board's decision Io
increase subsIanIially Ihe dividend and
Io pay a special dividend Ihis year.
lTV is, aIIer Ihe BBC, Ihe UK's largesI
invesIor in original UK progranning
and a huge enployer and developer
oI creaIive IalenI. We are also one oI
Ihe UK's nosI regulaIed businesses. lI
is IhereIore very inporIanI IhaI Ihe
SecreIary oI SIaIe has announced
her inIenIion Io renew our licence Ior
anoIher Ien years. The growIh oI Ihe
inIerneI will pose nany challenges Io Ihe
IuIure regulaIion oI visual nedia in Ihe
UK buI iI is inporIanI IhaI Ihe licensing
and regulaIory Iranework Ior Ihe
exisIing business is now nore secure.
We conIinue Io develop Ihe Board.
l an keen Io ensure we keep a relaIively
snall, high calibre Board close Io Ihe
business, including boIh diversiIy oI
IalenI and Ihe parIicular skills and
experience required Io help provide
sIewardship Io our IransIornaIion
progranne. l an delighIed IhereIore
IhaI Poger laxon has joined us wiIh
his inIernaIional perspecIive and
experience oI Ihe digiIal IransIornaIion
in Ihe nusic indusIry, and his Irack
record in creaIive indusIries.
l would like Io Ihank all Ihe colleagues
in lTV Ior Iheir conIribuIion Io a year oI
greaI change and progress. And Inally
our shareholders Ior Iheir conIinuing
supporI during a renarkable Iew years.
Archie Norman
Chairnan
Pictured:
Lndeavour (above)
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5trategy & Operations
CLO Peview
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Adam Crozier
We have a clear, consisIenI sIraIegy
IhaI our people supporI and are driving
Iorward Ihrough our Iour prioriIies.
Over Ihe lasI Ihree years we have
consisIenIly grown our revenues,
delivered double digiI earnings growIh
and converIed IhaI earnings growIh
Io cash Io sIrengIhen our Inancial
posiIion. During IhaI Iine we have
increased our LBlTA beIore excepIional
iIens (LBlTA) by 157% Io 520n, our
adjusIed LlS by 411% Io 9.2p and we
have inproved our cash posiIion by
over 800n.
Our BroadcasI business is robusI
and growing and our Online, lay &
lnIeracIive revenue sIreans are now
a naIerial parI oI Ihe business wiIh
signiIcanI opporIuniIies as digiIal
nedia conIinues Io develop. Our Iocus
on creaIiviIy and conIenI is building
sIrong susIainable organic growIh
in our UK and lnIernaIional SIudios
business, which we are enhancing
Ihrough IargeIed acquisiIions and
parInerships in key creaIive narkeIs.
While Ihere is sIill nuch Io do Ihis is
clear evidence IhaI lTV is IransIorning
inIo a nore robusI, eIIcienI and
balanced conpany.
Our vision
Our vision renains Io creaIe world class
conIenI which we can nake Ianous
on our channels, and exploiI across
nulIiple plaIIorns, boIh Iree and pay,
in Ihe UK and inIernaIionally. As an
inIegraIed producer broadcasIer we
are in a unique posiIion Io be able Io
do Ihis. Our ain renains Io rebalance
Ihe business Io reduce our reliance
on adverIising. The progress we are
naking is now clearly evidenI in our
Inancial and operaIing resulIs.
2012 Group financia|
performance
ln 2012 we delivered anoIher sIrong
Inancial perIornance wiIh growIh
across all parIs oI Ihe business. Group
exIernal revenues were up 3% and IoIal
revenues up 5%. This, in line wiIh our
sIraIegy, was driven by growIh in non
neI adverIising (non-NAP) revenues.
These were up 114 nillion (12%) Io
1,036 nillion (2011. 922 nillion),
parIicularly in SIudios and Online, lay
& lnIeracIive. LBlTA increased 13% Io
520 nillion (2011. 462 nillion) and
adjusIed LlS was up 16% Io 9.2p (2011.
7.9p).
This builds on Ihe signiIcanI progress
we have already achieved since we
announced Ihe TransIornaIion llan.
- ToIal revenues have grown 19%
since 2009 Iron 2,141 nillion Io
2,546 nillion
- Non-NAP revenues have grown 22%
Iron 850 nillion Io 1,036 nillion
- LBlTA has grown 157% Iron
202 nillion Io 520 nillion
- AdjusIed LlS has grown 411% Iron
1.8p Io 9.2p.
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ln 2012 we nainIained our Iocus on
cash and cosIs and delivered 30
nillion oI cosI savings, 10 nillion
ahead oI our iniIial IargeI. Our proII
Io cash conversion renains high and
we ended Ihe year wiIh 206 nillion
oI neI cash, having been in a neI debI
posiIion oI 612 nillion in 2009.
The Board has proposed a Inal
dividend oI 1.8p (2011. 1.2p) giving
a Iull year dividend oI 2.6p (2011.
1.6p). The Board is conniIIed Io
a progressive dividend, Iaking inIo
accounI Ihe ouIlook Ior Ihe business,
while balancing Ihe need Io invesI and
Io nainIain a robusI Inancial posiIion
againsI Ihe backdrop oI an uncerIain
econonic environnenI.
ln addiIion Io Ihe Inal dividend, Ihe
Board is proposing a special dividend
oI 4p per share (156 nillion). Over
Ihe lasI Ihree years we have nade
signiIcanI progress in IransIorning Ihe
Group connercially, creaIively and
Inancially. While only parI way Ihrough
Ihe TransIornaIion llan, lTV is now
beconing a beIIer business, delivering
good revenue and proII growIh and
generaIing signiIcanI levels oI cash
which can be reinvesIed Io drive
growIh and deliver shareholder reIurns.
This cash disIribuIion reIecIs Ihe
signiIcanI progress nade and our need
Io reIain a conservaIive and Iexible
balance sheeI while conIinuing Io
invesI Io deliver Ihe TransIornaIion
llan. Going Iorward we will balance
capiIal discipline wiIh Ihe need Io
invesI Ior IuIure growIh and nainIain
IexibiliIy.
2012 5trategic and
operationa| performance
BroadcasI & Online revenues increased
14 nillion (1%) Io 1,834 nillion
(2011. 1,820 nillion) and LBlTA was
up 34 nillion (9%) Io 413 nillion
(2011. 379 nillion) in a broadly IaI
adverIising narkeI driven by Ihe good
growIh in our higher nargin non-NAP
revenues. We again ouIperIorned Ihe
Ielevision adverIising narkeI buI our
on-screen viewing perIornance was, as
expecIed, negaIively inpacIed by Ihe
exIraordinary year Ior UK Ielevision. ln
2012 Ihere were nany unique evenIs
such as Ihe Queen's Jubilee and Ihe
london Olynpics largely on Ihe BBC
which will noI reIurn in 2013. We do
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(2011: 922m)
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lell's KiIchen USA
lTV SIudios Anerica delivered iIs 10Ih
series oI lell's KiIchen Io lox in 2012, wiIh
connissions secured Ior an 11Ih and 12Ih
series.
The changing
nedia environnenI
highlighIs Ihe
inporIance oI
creaIing and owning
inIellecIual properIy.
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noI expecI Ihis perIornance Io inpacI
our adverIising share in 2013 and Ihe
deals we have done supporI Ihis view.
We are Iocused on growing our share
oI viewing in 2013.
BroadcasI & Online non-NAP revenues
were driven by our Online, lnIeracIive
and lay revenues which grew by 26%
Io 102 nillion (2011. 81 nillion). We
have IurIher inproved Ihe qualiIy
oI our online oIIering and nade iI
available on nore plaIIorns, which led
Io a 22% increase in long Iorn video
requesIs.
Our SIudios business delivered sIrong
organic growIh across all Ihree
divisions as we conIinue Io invesI in
Ihe creaIive pipeline. ToIal SIudios
revenues were up 100 nillion (16%)
Io 712 nillion (2011. 612 nillion)
and we delivered over 100 nillion oI
LBlTA Ior Ihe IrsI Iine in lTV's hisIory.
We have also nade a nunber oI snall
sIraIegic acquisiIions in Ihe UK and
inIernaIionally Io sIrengIhen our global
SIudios business.
We Irack our perIornance againsI a
nunber oI operaIing neIrics as well as
Ihe Inancial indicaIors, which are seI
ouI in nore deIail over Ihe Iollowing
pages. Over Ihe lasI Iew years, Ihe
signiIcanI progress we have nade is
evidenI.
We have.
- lncreased enployee engagenenI
each year oI Ihe llan,
- Delivered 90 nillion oI cosI savings
over Ihe lasI Ihree years,
- OuIperIorned Ihe Ielevision
adverIising narkeI each year since
we launched Ihe sIraIegy,
- SIabilised SOV aIIer years oI decline,
- Grown Online, lay and lnIeracIive
revenues by over 104% since 2009,
- Grown long Iorn video requesIs by
over 200% since 2009,
- Grown lTV SIudios' revenues by
alnosI 20% since 2009,
- Grown lTV SIudios' share oI lTV
ouIpuI Iron 50% in 2009 Io 58%
(including lTV BreakIasI) in 2012.
Our strategy is the right
strategy for the changing
media environment
The nedia environnenI in which we
operaIe is dynanic and we nusI ensure
IhaI we adapI wiIh iI. DigiIal nedia
conIinues Io grow rapidly wiIh nany
new ways oI waIching Ielevision and
being enIerIained, which presenIs
greaI opporIuniIies Ior conIenI owners
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such as lTV. DespiIe Ihe signiIcanI
growIh oI digiIal nedia, iI sIill renains
a relaIively snall parI oI IoIal viewing
aI less Ihan Iwo percenI and linear
Ielevision viewing renains robusI.
lI is IhereIore inperaIive IhaI while
we drive new revenue sIreans our
BroadcasI business renains sIrong.
The changing nedia environnenI
highlighIs Ihe inporIance oI creaIing
and owning inIellecIual properIy. All
new plaIIorns need qualiIy conIenI Io
be a success and we have over 35,000
hours oI new and archive conIenI Io
disIribuIe Io Ihen. We nusI ensure
IhaI we conIinue Io invesI in a healIhy
conIenI pipeline and Iake advanIage
oI our inIegraIed producer broadcasIer
nodel by naking Ihe progrannes
Ianous on our neIwork.
2013 and beyond
We renain Iocused on delivering Ihe
TransIornaIion llan and building
on Ihe nonenIun achieved over
Ihe lasI Ihree years. We will conIinue
Io inprove Ihe eIIciency oI Ihe
business, wiIh anoIher 20 nillion
oI non-NeIwork lrogranne BudgeI
(non-NlB) cosI savings. TogeIher wiIh
a sIrong balance sheeI Ihis gives us
Ihe sIrengIh and IexibiliIy Io invesI in
Ihe business. These savings will Iund
increnenIal non-NlB invesInenIs oI
20-25 nillion.
ln 2013 we will Iocus on inproving our
on-screen perIornance and we have
already had success wiIh progrannes
such as Mr SelIridge and Splash|.
We will reinvesI 20 nillion oI our
Chanpions league and lA Cup sporIs
righIs savings and IhereIore deliver a
saving on Ihe NlB oI 15 nillion. Our
objecIive renains Io ouIperIorn Ihe
Ielevision adverIising narkeI and look
aI ways Io IurIher increase Ihe value oI
Ihe 30-second spoI. We are cauIious
on Ielevision adverIising in 2013 buI
lTV lanily NAP in Q1 is expecIed Io be
up 5%.
We will conIinue Io exploiI
opporIuniIies in digiIal nedia as we
grow our Online, lay and lnIeracIive
revenues, using our advanIage as a
producer and owner oI inIellecIual
properIy. Key Io Ihis is a sIrong creaIive
pipeline and IhereIore iI is inperaIive
IhaI we conIinue Io sIrengIhen our UK
and inIernaIional producIion capabiliIy.
We will conIinue Io nake selecIed
acquisiIions or parInerships iI Ihey II
our sIraIegy and sIricI Inancial criIeria.
Delivering our sIraIegy is driving
inproved resulIs, enhanced
shareholder reIurns and IuIure growIh
prospecIs and we are Iocused on
building on Ihis progress in 2013.
Bui|d a strong $"0&/")0$-")1
*-"0&"0 business
Go Io pages 28 31
4
2)3$4$#& )5%$&"*& and /&.&"5&
#6)/& from our existing free-to-
air broadcast business
Go Io pages 20 22
22
Drive new revenue streams by
&371-$0$"8 our *-"0&"0 across
4510$71& 71)09-/4#, 9/&& and 7):
Go Io pages 24 26
3
Create a 1&)", */&)0$.&1:
%:")4$* and t-for-purpose
organisation
Go Io pages 16 18
1111
Transforming ITV
Our sIraIegy Io IransIorn lTV Iocuses on our Iour sIraIegic prioriIies.
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7(*,"< 10#) <&"&*0($,"
206m
(2011: 5m)
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5trategy & Operations
PeporIing progress againsI our Ive year TransIornaIion llan
>&*A,*;0"1& ?0#)M,0*%
Create a 1&)",
*/&)0$.&1: %:")4$*
and t-for-purpose
organisation
2)3$4$#& )5%$&"*&
and /&.&"5& #6)/&
from our existing
free-to-air broadcast
business
Drive new revenue
streams by &371-$0$"8
our *-"0&"0 across
4510$71& 71)09-/4#,
9/&& and 7):
Bui|d a strong
$"0&/")0$-")1
*-"0&"0 business
Mi|estones achieved
- Pecord enployee
engagenenI aI 88%
- Announced rebrand
- 30n cosI savings
- Driving value Iron
inIegraIed producer
broadcasIer nodel
- Third year double digiI
LBlTA growIh
- NeI cash 206n
- 15-year pension
Iunding plan agreed
Mi|estones achieved
- Again ouIperIorned
Ihe TV ad narkeI
- lncreased varieIy and
qualiIy oI schedule
- lTV2 and lTV3 renain
largesI digiIal channels
- Won 7 NTAs
- lnnovaIive
parInerships wiIh
adverIisers
- GovernnenI supporI
Ior licence renewal
Mi|estones achieved
- lnproved qualiIy oI lTV
llayer
- lTV conIenI available
on 15 plaIIorns
- long Iorn video
requesIs up 22%
- launched pay
proposiIion on lTV
llayer and Ihird parIy
pay deals
- lnnovaIive ad IornaIs
- Online, lay and
lnIeracIive revenues
over 100n
Mi|estones achieved
- SIrong organic revenue
growIh across all
businesses, up 100n
- LBlTA over 100n
- lTV SIudio's share oI
lTV ouIpuI 58%
- lnvesIing in creaIive
103 new connissions,
108 reconnissions
- CreaIing progrannes
IhaI Iravel
- SIraIegic acquisiIions
Focus for 2013
- Take beneIIs oI Ihe
rebrand Ihrough Ihe
business
- Drive conplexiIy ouI oI
Ihe business
- 20n cosI saving IargeI
- PelenIless Iocus on cash
- MainIain a robusI,
eIIcienI and Iexible
balance sheeI
Focus for 2013
- lnprove lTV Ianily SOV
- PeinvesI sone oI sporIs
righIs cosI savings
- Maxinise value oI large
audiences
- ObjecIive Io ouIperIorn
Ihe TV ad narkeI
- Drive IurIher value Iron
30 second spoI and
relaIed revenues
- linalise agreenenI Ior
new 10 year licence
Focus for 2013
- Growing online Iron
increased disIribuIion and
consuner behaviour
- Poll ouI pay VOD
opporIuniIies on nobile
- lncrease nunber oI Ihird
parIy pay deals and
renegoIiaIe exisIing deals
- Develop IurIher
innovaIive and IargeIed
adverIising opporIuniIies
Focus for 2013
- lnvesI in creaIive IalenI
and piloIs Io nainIain a
healIhy pipeline
- locus on long running
reIurnable series
- LxploiI progrannes IhaI
Iravel inIernaIionally
- lurIher sIrengIhen
inIernaIional producIion
capabiliIy
- Scale inIernaIional
disIribuIion business
- LBlTA beIore excepIional iIens - AdjusIed earnings per share - 'lroII Io cash' conversion - Non-NAP revenues
KP| - Financia|
- Lnployee LngagenenI - lTV lanily Share oI
Viewing (SOV)
- lTV lanily Share oI
Connercial lnpacIs (SOCl)
- lTV lanily Share oI
BroadcasI (SOB)
- ToIal long Iorn video
views
- Nunber oI new
connissions Ior lTV
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Making lTV a lean, creaIively dynanic
and II-Ior-purpose organisaIion was
a key prioriIy when we announced
Ihe TransIornaIion llan in 2010 and
iI renains so Ioday. We have nade
greaI sIrides in driving ouI wasIe and
conplexiIy in Ihe business, developing
our people, delivering culIural change
aI all levels oI Ihe organisaIion
and invesIing in our Iechnology,
inIrasIrucIure and brand.
One |TV
leople are aI Ihe hearI oI our success
and we conIinue Io invesI in Ihen and
Iheir developnenI Io help drive Ihe
TransIornaIion llan. We are pleased
Io see our engagenenI survey score
again rise in 2012 Io 88% (2011. 85%)
up Ior Ihe Ihird year in a row wiIh
conpany parIicipaIion in Ihe survey
over 80%.
We conIinue Io Iocus on sinpliciIy
wiIhin Ihe business working as
OnelTV Io nake iI easy Ior our people
Io do Iheir jobs, ensure IhaI businesses
do noI work in silos and IhaI exIernally
we are easy Io deal wiIh. Through
Ihis we can naxinise Ihe beneII
Iron being an inIegraIed producer
broadcasIer, driving revenue Iron all
our brands by naking our conIenI
Ianous on our channels beIore selling
iI inIernaIionally. This has helped us
drive sIrong revenue and earnings
growIh across all parIs oI Ihe business.
ln auIunn 2012 we began Ihe nove oI
our people aI Ihe ManchesIer oIIce Io
MediaCiIy. This provides new sIaIe-
oI-Ihe-arI oIIces and sIudio IaciliIies
and will be conpleIed wiIh Ihe nove
oI CoronaIion SIreeI in laIe 2013/early
2014.
|TV at the heart of popu|ar
cu|ture
ln January 2013 we rebranded lTV
Io beIIer reIecI lTV as a nodern
and uniIed conpany and Io inprove
our relaIionship wiIh our viewers.
Developed in-house by lTV CreaIive,
iI sIreIches across all our channels,
Online and SIudios businesses globally.
licIured.
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17
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Pe|ent|ess focus on efficiency
We need Io ensure IhaI we have
Ihe righI cosI base Ior Ihe Conpany,
balancing eIIciency wiIh Ihe need Io
invesI Ior Ihe long-Iern growIh oI
Ihe business. ln 2012 we achieved 30
nillion oI cosI savings which was 10
nillion ahead oI Ihe IargeI we seI aI
Ihe sIarI oI Ihe year. These savings
Iollow on Iron 60 nillion delivered
across 2010 and 2011.
This Iocus on cosIs and cash over Ihe
lasI Ihree years, along wiIh Ihe acIion
we have Iaken Io buy back debI, has
helped Io signiIcanIly sIrengIhen and
inprove Ihe eIIciency oI Ihe balance
sheeI and reIurns Io shareholders.
Our cash generaIion is sIrong and
wiIh a robusI balance sheeI Ihis gives
us IexibiliIy Io invesI in our sIraIegic
goals. We have also puI in place a new
pension agreenenI wiIh Ihe TrusIees
which gives us nore cerIainIy abouI
our pension conIribuIions over Ihe nexI
10 Io 15 years.
2013 and beyond
Our people will always be key Io our
success. ln 2012 enployee engagenenI
was aI record levels and we wanI Io
conIinue Io build on Ihis Io aIIracI and
reIain Ihe besI IalenI and skills aI lTV.
We will conIinue Io challenge how
we do Ihings across lTV Io drive ouI
conplexiIy and Iocus on eIIciencies.
We have idenIiIed a IurIher 20
nillion oI non-NlB cosI savings in 2013
and will deliver a 15 nillion reducIion
in NlB aIIer reinvesIing 20 nillion oI
sporIs cosI savings inIo Ihe schedule.
Our cosI savings will Iund 20-25
nillion oI increnenIal invesInenI in
2013. ln addiIion Io Ihis in January we
boughI our head oIIce Ihe london
Television CenIre, Io give us IexibiliIy
in our properIy sIraIegy as prior Io Ihe
acquisiIion we were locked inIo a 56
year lease. lI is essenIial IhaI while we
renain operaIionally and Inancially
II-Ior-purpose, we nusI balance cosI
and cash discipline wiIh Ihe need Io
invesI in Ihe business and Io drive
IuIure growIh and inprove shareholder
reIurns.
licIured.
l'n A CelebriIy . . . GeI Me OuI OI lere|
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ar2012.itvp|c.com
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Our BroadcasI business is core Io Ihe
TransIornaIion llan. As an inIegraIed
producer broadcasIer, lTV and our
digiIal channels provide a showcase Ior
lTV SIudios conIenI, on which we can
nake our progranning Ianous beIore
disIribuIing iI around Ihe world.
The BroadcasI business also drives
signiIcanI revenue, proII and cash,
which are essenIial Io Ihe delivery oI
Ihe plan and Io increasing shareholder
reIurns. MainIaining a healIhy
BroadcasI business, naxinising our
audience share oI Iree-Io-air Ielevision
viewing and our revenue share Iron iI
is IhereIore key Io Ihe delivery oI our
sIraIegy.
|TV again outperformed the
te|evision advertising market
Our core BroadcasIing business
renains robusI and has perIorned
well in a challenging narkeI. ln
2012 we have again ouIperIorned
Ihe Ielevision adverIising narkeI
wiIh lTV lanily NAP IaI againsI Ihe
Ielevision narkeI which, based on
our esIinaIes, was down around 1%.
We have ouIperIorned Ihe Ielevision
adverIising narkeI every year since
we launched Ihe TransIornaIion llan
and have grown our Share oI BroadcasI
(SOB) Iron 44.7% in 2009 Io 45.8% in
2012.
We have achieved Ihis Ihrough Ihe
increased varieIy and qualiIy oI our
schedule and Ihrough Ihe unrivalled
reach IhaI we oIIer. Our nain
channel, now rebranded lTV, is Ihe
UK's sIrongesI narkeIing plaIIorn
delivering nass audiences, which are
highly valued by adverIisers. Our digiIal
channels lTV2, lTV3 and lTV4 deliver
nore IargeIed denographics, which
IogeIher wiIh lTV ensures IhaI we
deliver boIh nass and IargeIed reach.
Our broadcasI perIornance has helped
drive a 9% growIh in BroadcasI &
Online LBlTA Io 413 nillion (2011.
379 nillion), which is a 272% increase
on 2009.
2012: an unprecedented year
for UK te|evision
lor on-screen viewing we conpeIe
wiIh oIher public service broadcasIers
and wiIh a large nunber oI digiIal
channels. Over Ihe lasI Iew years we
have sIabilised our Share oI Viewing
(SOV) aIIer years oI decline.
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lowever, 2012 was an unprecedenIed
year Ior UK Ielevision wiIh nany unique
evenIs including Ihe Queen's Jubilee
and Ihe london Olynpics, which was
broadcasI solely on Ihe BBC, and Ihe
laralynpics on Channel 4. ln IacI, 9
ouI oI Ihe Iop 10 progrannes aired
in 2012 will noI reIurn in 2013. The
exIraordinary naIure oI 2012 inpacIed
our viewing share wiIh lTV lanily Share
oI Viewing (SOV) down 3% and lTV
lanily Share oI Connercial lnpacIs
(SOCl) down by a sinilar anounI and
on Ihe nain lTV channel SOV and SOCl
were down 6% and 5% respecIively.
The lTV digiIal channels conIinued Io
grow well wiIh SOV up 3% and SOCl up
by 2%.
lTV had nany on-screen successes
in 2012. Based on series average, lTV
broadcasI Ihe highesI-raIing drana
in DownIon Abbey, Ihe highesI-
raIing soap in CoronaIion SIreeI and
in BriIain's GoI TalenI, Ihe highesI-
raIing enIerIainnenI show. ln 2012
lTV broadcasI 99% oI all connercial
audiences over 5 nillion.
New and reIurning drana in 2012 also
included Mrs Biggs, The BleIchley Circle,
A MoIher's Son, Vera and lewis. Many
oI our enIerIainnenI progrannes
conIinued Io deliver very signiIcanI
audiences, Ior exanple l'n A CelebriIy
. . . GeI Me OuI OI lere|, and while sone
saw Iheir audiences decline year on
year, Ior exanple The X lacIor, Ihey
renain a key parI oI our schedule and
we conIinually look aI ways Io reIresh
Ihese shows Io inprove Iheir on-screen
perIornance.
The soaps CoronaIion SIreeI and
Lnnerdale conIinue Io regularly
drive very large audiences. While year
on year Iheir perIornance was slighIly
down, Ihey ouIperIorned Iheir rivals
on oIher channels, wiIh Lnnerdale
celebraIing iIs 40Ih anniversary year
wiIh a live perIornance IhaI aIIracIed
a peak audience oI 10.7 nillion.
News, SporI and our DayIine
progrannes conIinue Io be inporIanI
parIs oI our schedule. Luro 2012 was
a greaI success Ior lTV in Ierns oI
viewing and adverIising perIornance.
We renain conniIIed Io providing
high qualiIy, inparIial news boIh
naIional and inIernaIional as well as
in Ihe naIions and regions. We have
reIreshed parI oI our DayIine schedule
wiIh Ihe relaunch oI Daybreak and This
Morning conIinues Io deliver sIrong
regular audiences. Our aIIernoon
schedule has perIorned very sIrongly,
in parIicular The Chase which regularly
delivers audiences oI over Ihree nillion.
ln 2012 we also saw Ihe successIul
reIurn oI our hard-hiIIing invesIigaIive
series, Lxposure, and our poliIics and
currenI aIIairs show, The Agenda.
lTV2 and lTV3 renain Ihe UK's Iwo
largesI digiIal channels and lTV4
conIinues Io grow well. We have
IurIher invesIed in brand deIning
conIenI Ior our digiIal channels, which
has helped Io drive valuable audiences
in key denographics. The Only Way
is Lssex and CelebriIy Juice boIh
delivered sIrong audiences on lTV2.
The Tour de lrance and lrench Open, as
well as Ihe Luropa league, lll CrickeI
and Ihe lsle oI Man TT drove good
audiences on lTV4.
Our progranning is ained aI Ihe hearI
oI popular culIure and IhereIore iI is
very encouraging IhaI aI Ihe NaIional
Television Awards, which are voIed Ior
by Ihe public, we won seven awards
including.
- BesI serial drana Ior CoronaIion
SIreeI
- BesI drana Ior DownIon Abbey
- BesI enIerIainnenI show Ior l'n a
CelebriIy
- BesI dayIine progranne Ior
This Morning
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AlIhough we had nany successes
on-screen, overall 2012's viewing
perIornance was below where we
would like iI Io be and we are working
Io inprove Ihis. ln 2013 we have
already achieved sone iniIial success
wiIh progrannes such as Splash| and
Mr SelIridge.
Te|evision broadcast industry
remains stab|e
While Ihe nedia environnenI conIinues
Io develop rapidly Ihe IradiIional linear
Television business nodel renains
robusI. Television adverIising as a share
oI UK IoIal adverIising is aI a sinilar
level Io 2009 aI 28.1% in 2012 as Ihe
lnIerneI Iakes share Iron lress and
direcI nail. levels oI linear viewing
renain relaIively IaI wiIh Ihe nunber
oI hours viewed in 2012 aI 28.1 hours
per week, aI a sinilar level Io 2009.
Online viewing is growing IasI, creaIing
signiIcanI opporIuniIies Ior us,
however, Ihis Iype oI viewing is currenIly
increnenIal Io linear viewing and
renains a relaIively snall percenIage oI
IoIal viewing aI less Ihan 2%.
|ncreasing the va|ue of the 30
second spot and driving re|ated
revenues
We conpeIe wiIh oIher connercial
broadcasIers Ior Ielevision adverIising
and wiIh oIher nedia across Ihe wider
narkeI Ior share oI IoIal adverIising.
We conIinue Io develop our connercial
oIIering across our BroadcasI & Online
business, looking aI ways Io sIrengIhen
and increase Ihe value oI our adverIising
and drive relaIed revenue sIreans
Io ensure we Iake as nuch share as
possible, Ior exanple wiIh sponsorship
and producI placenenI.
lTV Connercial has been working
nore closely wiIh clienIs and agencies
Io innovaIe and enhance Ihe value oI
Ihe IradiIional 30 second spoI. ln 2012
we reached an agreenenI wiIh audio
recogniIion provider Shazan Io be Ihe
exclusive UK disIribuIor Ior Shazan
IuncIionaliIy in broadcasI adverIising.
This enables us Io oIIer clienIs Ihe
chance Ior Iheir spoI ads Io becone
inIeracIive experiences where viewers
who have Ihe Shazan app on Iheir
snarIphones can inIeracI wiIh Ihe
enabled adverIs Io enIer conpeIiIions,
geI addiIional inIornaIion abouI a
brand or producI, view special conIenI
or download Iree nusic.
Pegu|ation
A key posiIive developnenI Iowards
Ihe end oI 2012 was Ihe announcenenI
by Ihe SecreIary oI SIaIe Ior CulIure,
Media and SporI IhaI Ihe GovernnenI
has agreed IhaI lTV's lublic Service
BroadcasIing licences should be
renewed Ior a Iull Ien year Iern Iron
Iheir expiry aI Ihe end oI 2014. This
decision paves Ihe way Ior Ihe Inal
phase oI Ihe renewal process, which is
overseen by OIcon, Io go ahead and
should be Inalised in 2013.
2013 and beyond
looking Io 2013 we will conIinue Io
Iocus on inproving our Share oI Viewing
and drive Ihrough Ihe beneIIs oI Ihe lTV
Pebrand in our channels and progranne
sIraIegy. We will reinvesI 20 nillion oI
our sporIs cosI savings and IhereIore
deliver a saving on Ihe progranne
budgeI oI around 15 nillion.
We do noI expecI our viewing
perIornance in 2012 Io inpacI our
adverIising perIornance in 2013 and
Ihe deals we have in place supporI
Ihis view. Our objecIive renains Io
ouIperIorn Ihe Ielevision adverIising
narkeI over Ihe Iull year. ln Q1 2013
lTV lanily NAP is expecIed Io be up
5%, again ouIperIorning Ihe Ielevision
adverIising narkeI, however, we
renain cauIious Ior Ihe Ielevision
adverIising narkeI over Ihe Iull year.
We also conIinue Io look aI ways oI
enhancing our broadcasIing revenues
Ihrough innovaIive ways oI working
wiIh our adverIisers, exIending Ihe
value oI our progranne brands and
growing oIher non-NAP revenues.
7(*0(&<$1 >*$,*$(= 1,"($"8&%
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28.1 hrs/wk
(2009: 26.3hrs/wk)
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56 0%:&*($#$"< #)0*& *&;0$"# M*,0%4= #(0M4&
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ar2012.itvp|c.com
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The explosion in new Iechnology
plaIIorns over Ihe lasI Iew years has
driven a rapid increase in Video on
Denand (VOD) viewing, nosI recenIly
driven by nobile viewing. VOD is
neasured separaIely Io linear viewing
and currenIly is increnenIal Io iI as
people are given nore opporIuniIies
Io waIch conIenI. The growIh in new
plaIIorns has nade iI clearer Ihan
ever IhaI Iheir success depends on
having conIenI wheIher currenI or
archive which people wanI Io waIch
whenever and wherever on a range
oI plaIIorns. This represenIs a huge
ongoing opporIuniIy Ior lTV as we have
highly denanded conIenI IhaI Ihese
plaIIorns need.
On|ine advertising
Over Ihe lasI Iew years we have
signiIcanIly increased Ihe disIribuIion
oI our conIenI, Iron Iwo plaIIorns
in 2009 Io 15 in 2012, including iOS,
Android, lS3, lreesaI and YouView
Iollowing iIs successIul launch Ihis
sunner. We have also enhanced Ihe
qualiIy and reliabiliIy oI our lTV llayer
and relaunched our News and SporIs
siIes as iIs becone clearer IhaI whaI
viewers wanI is video conIenI online
which is our sIrengIh. The invesInenI
in qualiIy and disIribuIion over Ihe lasI
Iew years has delivered rapid growIh in
long Iorn video requesIs, which were
up 22% year on year in 2012 Io 458
nillion, an increase oI over 200% since
2009. This has driven online revenues
up 40% in 2012.
Pay and |nteractive
Our lay and lnIeracIive revenues have
also grown as iI has now becone
clearer IhaI people wanI access Io
greaI conIenI anywhere, Ihrough
whichever device Ihey choose, wiIh
Ihe opIion oI inIeracIing wiIh Ihe
conIenI direcIly or Ihrough second
screen engagenenI. This growIh and
Ihe increase in online adverIising has
helped drive sIrong growIh in our IoIal
Online, lay and lnIeracIive revenues
up 21 nillion (26%) Io 102 nillion in
2012. This is now a naIerial revenue
sIrean Io lTV naking up around 10% oI
our non-NAP revenues.
?*$:& "&@ *&:&"8& #(*&0;# M=
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3"4$"&S >0= 2 !"(&*01($:& *&:&"8&#
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(2011: 81m)
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lay revenues are generaIed Iron
conIenI deals wiIh Ihird parIy plaIIorn
owners and in Ihe IuIure will cone
Iron online IransacIions direcIly wiIh
Ihe consuner Ihrough Ihe lTV llayer.
lay revenues grew again in 2012 wiIh
Ihe IrsI year's conIribuIion Iron Ihe
NeIIix, loveIln and Sky archive video
VOD deals, which launched early in Ihe
year, and Ihe caIch up deal wiIh Sky
which launched in Ihe auIunn.
ln AuIunn 2012 we successIully
rolled ouI our direcI-Io-consuner pay
proposiIion on lCs which is inIegraIed
inIo our lTV llayer. lI is early days and
we conIinue Io explore how Io develop
Ihese IransacIional VOD services
IurIher as we roll Ihen ouI across
nobile devices.
We conIinue Io look Ior new ways
IhaI viewers can inIeracI wiIh
our progrannes, deepening our
relaIionship wiIh Ihen, increasing
progranne loyalIy and driving value
Ior our adverIisers. We now have 4.4
nillion conIacIable enail addresses
and across Ihe oIIcial pages oI shows
broadcasI on lTV Ihere are over 22
nillion lacebook 'likes' as we IurIher
inIeracI wiIh our viewers Ihrough social
nedia.
Lnhancing the va|ue of our
on|ine offering
ln addiIion Io naking our IradiIional
linear spoI ads work harder Ihrough
deals such as Ihe one we signed wiIh
Shazan, we have also been running
an ad innovaIion progranne in which
we have Irialled and launched several
new online ad IornaIs Io nake VOD
adverIising nore engaging Ior our
viewers and nore valuable Ior our
adverIisers.
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Pequests
I*,@" M= ,:&* BCCO #$"1& BCCT
58m
(2011: 376m)
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4*!"#!567812353+9
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licIured.
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These include Ad llay, which poses
a nulIiple choice quesIion abouI
Ihe producI or brand, Ad Sync, which
provides a synchronised second screen
experience Ior broadcasI adverIisers
during our live enIerIainnenI shows,
and Ad Lxplore, which allows users Io
explore nore abouI Ihe adverIiser's
producI or service.
Deve|oping on|ine market
The way people are waIching digiIal
nedia is evolving. Mobile and IableI
viewing is growing Ihe IasIesI and
is closing Ihe gap on iIv.con as Ihe
largesI ad Iunded plaIIorn in Ierns
oI views. We are conIinuing Io explore
opporIuniIies Ior nobile viewing,
building on Ihe 7.1 nillion downloads oI
Ihe lTV llayer app since launch.
2013 and beyond
ln 2013 we will conIinue Io invesI in
our online oIIering Io IurIher drive
viewing and build adverIising revenues
in line wiIh increasing audiences. We
will also IurIher enhance Ihe value oI
our online adverIising and seek Io use
our increasing daIa knowledge Io build
IargeIed opporIuniIies.
We are plaIIorn agnosIic and Ihe key
renains Io deliver video conIenI Io Ihe
largesI and IasIesI growing plaIIorns
and Ihen eiIher serve adverIising Io
Ihen or develop our pay opporIuniIies
around Ihen. The conIenI deals we
have done Io daIe are largely non-
exclusive which give us IexibiliIy as we
renegoIiaIe currenI deals, allowing us
Io consider oIher pay opporIuniIies,
including pay channels.
26
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ar2012.itvp|c.com
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4
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Over Ihe lasI Iew years Ihere has
been increasing global denand Iron
BroadcasIers and plaIIorn owners
Ior proven conIenI, which provides
greaI opporIuniIies Ior lTV as a leading
conIenI creaIor and producer.
Since 2010 we have been IransIorning
lTV SIudios connercially and creaIively
in Ihe UK and overseas, invesIing in
creaIive IalenI and in Ihe progranne
pipeline Io exploiI Ihese opporIuniIies.
The progress we have nade is now
coning Ihrough in Ihe Inancial and
operaIing perIornance indicaIors.
We delivered sIrong organic growIh
across all Ihree businesses wiIhin
SIudios in 2012, wiIh IoIal revenue up
100 nillion (16%) Io 712 nillion and
LBlTA over 100 nillion Ior Ihe IrsI
Iine in lTV's hisIory. UK lroducIions
which produces conIenI Ior lTV and
oIher UK broadcasIers grew 18%,
lnIernaIional lroducIions which
produces conIenI in cerIain local
counIries, including local versions oI
UK IornaIs, grew 21%, and Global
LnIerIainnenI which disIribuIes
lTV's and Ihird parIy conIenI globally
grew 6%. Since 2009 revenues and
LBlTA have increased 19% and 18%
respecIively.

The invesInenI we have nade in a
sIrong and healIhy creaIive pipeline
is reIecIed in Ihe level oI new
connissions and reconnissions. ln
2012 we have again delivered over 100
new connissions while, crucially, Ihe
nunber oI reconnissions has grown
Iron 101 Io 108 as we Iocus on IornaIs
IhaI reIurn and deliver nore value.
This is also reIecIed in Ihe nunber oI
hours oI progranning delivered which
increased 10% in Ihe UK and 47%
inIernaIionally.
UK production
ln Ihe UK we have grown our revenues
on and oII lTV. We have increased
Ihe level oI conIenI we own Ihrough
Ihe growIh in lTV SIudios' share oI
lTV ouIpuI which increased again Io
58%, up Iron 50% in 2009 including
Ihe inpacI oI lTV BreakIasI. On lTV
we have delivered new connissions
including Surprise Surprise, lool
BriIannia, Mrs Biggs and TiIanic and
reconnissions oI Vera, lewis, The
Chase and The Agenda.
/8$4% 0 #(*,"< $"(&*"0($,"04
1,"(&"( M8#$"&##
/ strong |nternct|onc| content o0s|ness ||es ct t|e |ecrt oj o0r
&),')*+=3 C0, +/'5 %& )/ 1,*')* '(- /8( 6/,* /< /0, /8( 1/()*()A
6'9* %) <'6/0& %( )4* :; /( /0, 14'((*5& '(- *B.5/%) %) '1,/&&
605)%.5* .5')</,6& %( )4* :; '(- %()*,(')%/('55=3
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I*,@() 01*,## 044 %$:$#$,"#
712m
(2011: 612m)
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OII lTV our new connissions included
SheIland Ior BBC and Special Ops Cops
Ior Channel 5 and reconnissions such
as Cone Dine WiIh Me, CounIdown and
UniversiIy Challenge.
|nternationa| production
Our inIernaIional producIion business
is growing organically Ihrough our
producIion bases in Ihe US, AusIralia,
Gernany, lrance and Ihe Nordics wiIh
alnosI 50% nore hours delivered
in 2012. Many oI our UK IornaIs are
also being produced inIernaIionally,
Ior exanple May Ihe BesI louse Win,
Cone Dine WiIh Me, The Audience and
The Chase. ln IacI we have Ien IornaIs
IhaI are produced in Ihree or nore
IerriIories up Iron Iour in 2011. The
success oI 2012 is as a resulI oI growIh
across all our IerriIories buI parIicularly
in Ihe US where progrannes such as
lell's KiIchen and The Bill Cunninghan
Show have perIorned well and new
connissions such as KenIucky lried
AcIion and Car Brokers have been
secured.
G|oba| Lntertainment
The sIrong producIion growIh in Ihe
UK and inIernaIionally is sIrengIhening
Ihe caIalogue Ior inIernaIional sales
Ior our disIribuIion business, Global
LnIerIainnenI. ln 2012 Ihis was driven
parIicularly Ihrough Ihe sale oI TiIanic
Io 290 IerriIories and lrine SuspecI Io
213 IerriIories. This growIh nore Ihan
oIIseI Ihe decline in DVD sales and
delivered a 6% increase in revenues in
2012.
Acquisitions - bui|ding on our
strong organic growth
We have builI on our organic growIh as
we work in a varieIy oI ways Ihrough
acquisiIions, parInerships and joinI
venIures. ln 2012 we agreed Ierns
wiIh PesheI, Ihe lsraeli broadcasIer,
Io joinIly develop IornaIs and
progrannes Ior Iheir local neIwork
and Ihe inIernaIional narkeI whereby
lTV will Ihen disIribuIe Ihen globally.
Number of
New Commissions
2012: 103
(2011: 111)
Number of
Pecommissions
2012: 108
(2011: 101)
licIured.
Cone Dine WiIh Me
W/6* M%(* @%)4 N* 1/()%(0*& )/ +/ <,/6
&),*(+)4 )/ &),*(+)4 8%)4 )4* </,6') (/8 2*%(+
.,/-01*- %( UI 1/0(),%*&3
!!"#$%"& ##(#!(!"#! )*++, -.+
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Annual PeporI and AccounIs 2012
4*!"#!567812353+9
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:7*47;<= > ?1;*476+@A
7(*0(&<$1 >*$,*$(= 1,"($"8&%
ln Ihe second halI oI Ihe year we nade
a nunber oI acquisiIions in key creaIive
narkeIs wiIh conpanies IhaI produce
in genres IhaI Iravel and reIurn. These
acquisiIions were nade againsI sIricI
sIraIegic and Inancial criIeria including
a proven creaIive Irack record,
ownership oI ll, reIurn on capiIal
enployed and discounIed cash Iow.
We boughI Mediacircus and TarinaIalo
Io exIend lTV's presence in Ihe Nordic
region and we boughI So Television, Io
help build our enIerIainnenI capabiliIy
in Ihe UK. We have sIrucIured Ihe deals
in a way Io lock in creaIive IalenI and
align incenIives.
ln Decenber 2012 we acquired 61.5%
oI Gurney lroducIions, a US IacIual
enIerIainnenI conpany, Io build on
our sIrengIh and conplenenI lTV's
exisIing posiIion as a producer Ior
najor Ielevision neIworks in Ihe US.
There are puI and call opIions in place
over Ihe renaining 38.5%.
Given Ihe Iining oI Ihese acquisiIions
Ihey have noI had a naIerial inpacI on
Ihe 2012 resulIs.
Our content strategy
Our goal renains Io creaIe and produce
nore greaI conIenI in Ihe UK and
inIernaIionally and Io disIribuIe iI
Ihrough Global LnIerIainnenI. We will
Iocus on sIrong reIurning progranne
brands IhaI Iravel in genres such as
LnIerIainnenI, lacIual LnIerIainnenI
and Drana.
To enable us Io do Ihis we need Io
IurIher enhance our creaIive capabiliIy
by Iocusing our growIh and invesInenI
in Ihree areas where we believe we can
drive Ihe nosI value.
- Key creaIive narkeIs in Ihe UK and
US which have a Irack record Ior
creaIing ll,
- lroducIion cenIres, i.e. AusIralia,
Gernany, lrance and Ihe Nordics,
and,
- Lnerging creaIive narkeIs, e.g.
lsrael who have had sone early
successes in creaIing ll.
As we conIinue Io grow
inIernaIionally we are Iocused on
how we can opIinise value Iron our
qualiIy conIenI. We have diIIerenI
opporIuniIies depending on Ihe Iype
oI conIenI we produce. We sell dranas
such as TiIanic or Mr SelIridge Ihrough
Global LnIerIainnenI.
30
licIured.
Duck DynasIy
M019 M=('&)= /8(*- 2= X0,(*= >,/-01)%/(&A
w||c| we ccq0|reo |n Decemoer 2012, |s c0rrent|y
/(* /< )4* 2%++*&) 1'25* "# &4/8& %( )4* :?3
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% of ITV Cutput from
ITV 5tudios
G,"($"8&# (, <*,@ =&0* ," =&0*
58%
*
(2011: 55%)
WiIh IornaIs such as The Chase
or Cone Dine WiIh Me we can sell
Ihrough Global LnIerIainnenI eiIher as
a Inished progranne, or as a IornaI
which can Ihen be produced by a local
broadcasIer or producer. AlIernaIively
we can produce iI ourselves in IhaI
IerriIory Ior a local broadcasIer. The
nargins vary wiIh each opIion Ihe
percenIage nargin is highesI iI we sell
Ihe IornaI or Ihe Inished progranne
buI Ihe absoluIe nargin is higher iI we
produce iI locally.
2013 and beyond
ln 2013 we will IurIher invesI in our
creaIive IalenI and developnenI Io
nainIain a healIhy pipeline in Ihe
key genres IhaI Iravel Io ensure we
can Iake advanIage oI Ihe expecIed
increase in global denand Ior qualiIy
conIenI.
We will conIinue Io drive sIrong
organic growIh in Ihe UK and
inIernaIionally as well as build on our
growing sIrengIh and capabiliIy wiIh
selecIive parInerships, joinI venIures or
acquisiIions in key creaIive narkeIs.
Adam Crozier
ChieI LxecuIive
* lncludes lTV BreakIasI.
licIured.
Mrs Biggs
!"# ?)0-%/& .,/-01*- -,'6' N,& D%++& '14%*7*-
'( '7*,'+* '0-%*(1* /< V3F 6%55%/( 7%*8*,&
ccross |ts ve e|sooes
View Ihe Adan Crozier
inIerview online @
ar2012.itvp|c.coml
adamcrozierinterview
!!"#$%"& ##(#!(!"#! )*++, -.+
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Pictured:
Behind Ihe scenes oI TiIanic
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Performance & Financia|s
DirecIors' PeporI
!!"#$%"& ##(#!(!"#! )*++, -.+
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!""#$% '()*+, $"- !..*#",/ 0120
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!"#$%#&'()*+,&,-.
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E&= >&*A,*;0"1& !"%$10(,*#
We have deIned our Key lerIornance lndicaIors (Klls) Io align perIornance and accounIabiliIy Io Ihe TransIornaIion llan.
These Klls will be Ihe key neasures oI success over Ihe liIe oI Ihe TransIornaIion llan and cover all Iour sIraIegic prioriIies.
Pe|ated Priority KP| Performance
LB|TA before exceptiona| items
This is Ihe key proIIabiliIy neasure used across Ihe whole
business. Larnings beIore inIeresI, Iax and anorIisaIion
beIore excepIional iIens ('LBlTA') reIecIs our perIornance
in a consisIenI nanner and in line wiIh how Ihe business is
nanaged and neasured on a day-Io-day basis.
2012
520m
% Change
13%
2011
462m
13% is a 58 nillion increase in LBlTA and is prinarily due
Io a 3% increase in exIernal revenues, driven by non-
NAP revenues parIicularly high nargin Online, lay and
lnIeracIive revenues and 100 nillion increase in SIudios
revenue. This and Ihe delivery oI cosI savings has increased
proIIabiliIy.
Adjusted earnings per share
AdjusIed earnings per share represenIs Ihe adjusIed proII Ior
Ihe year aIIribuIable Io equiIy shareholders.
AdjusIed proII is deIned as proII Ior Ihe year aIIribuIable Io
equiIy shareholders beIore excepIional iIens, anorIisaIion
and inpairnenI oI inIangible asseIs acquired Ihrough
business conbinaIions, Inancing cosI adjusInenIs and prior
period and oIher Iax adjusInenIs.
lI reIecIs Ihe business perIornance oI Ihe Group in a
consisIenI nanner and in line wiIh how Ihe business is
nanaged and neasured on a day-Io-day basis.
2012
9.2p
% Change
16%
2011
7.9p
AdjusIed earnings per share has increased Io 9.2p, a 16%
increase, reIecIing Ihe inprovenenI in revenue and proIIs
and Ihe reducIion in adjusIed Inancing cosIs as we inprove
Ihe eIIciency oI Ihe balance sheeI.
'Proht to cash' conversion
'lroII Io cash' conversion represenIs Ihe proporIion oI
LBlTA beIore excepIional iIens converIed inIo a neasure
oI adjusIed cash Iow (deIned as cash generaIed Iron
operaIions beIore excepIional iIens less cash relaIed
Io Ihe acquisiIion oI properIy, planI and equipnenI and
inIangible asseIs).
A key prioriIy is Io keep IighI conIrol on cash and cosIs
and Ihis neasure prinarily reIecIs our working capiIal
nanagenenI and capiIal expendiIure conIrol. As such, iI
renains lTV's ain Io keep Ihis 'proII Io cash' conversion as
high as possible, and in excess oI 90% on a rolling Ihree-
year basis.
2012
95%
Abso|ute Change
(S)%
2011
103%
lroII Io cash conversion is again over our 90% rolling
Ihree-year IargeI despiIe Ihe sIep up in capex in 2012.
This denonsIraIes our conIinued Iocus on working
capiIal nanagenenI which has helped drive a signiIcanI
inprovenenI in our cash posiIion.
Lmp|oyee Lngagement
To Iurn lTV inIo a world class organisaIion IhaI is lean,
creaIively dynanic and II-Ior-purpose requires high qualiIy
enployees who are engaged in Ihe work IhaI Ihey do, and
are conniIIed Io Ihe TransIornaIion llan.
Lnployee engagenenI neasures pride in Ihe work we do,
pride in working Ior lTV and also whaI we say abouI our
progrannes and services.
2012
SS%
Abso|ute Change
3%
2011
S5%
Lnployee engagenenI has again inproved year on
year which indicaIes enployees' pride in lTV and Iheir
conniInenI Io supporIing change across Ihe business.
Conpany parIicipaIion in Ihe survey was also high aI 80%.
|TV Fami|y 5hare of Viewing (5OV)
SIraIegic prioriIy 2 ains Io naxinise audience share Iron
our exisIing Iree-Io-air broadcasI business, and lTV lanily
Share oI Viewing (SOV) is Ihe clearesI indicaIor oI Ihis. lTV
lanily SOV is lTV's share oI Ihe IoIal viewing audience
over Ihe year achieved by lTV's Ianily oI channels as a
proporIion oI IoIal Ielevision viewing, including Ihe BBC
Ianily. lTV ains Io aI leasI nainIain Ihe lTV lanily SOV.
2012
22.3%
% Change
(3)%
2011
23.1%
2012 was an exIraordinary year Ior Ielevision, wiIh nany
unique evenIs IhaI will noI reIurn, Ior exanple Ihe Queen's
Jubilee and Ihe london Olynpics. This inpacIed lTV lanily
SOV which was down 3% year on year.
The novenenI in SOV can be spliI beIween viewing
perIornance on each plaIIorn and Ihe change in usage oI
each oI Ihese plaIIorns during Ihe year ('plaIIorn nix').
Penoving Ihe inpacI oI change in plaIIorn nix, 2011's SOV
adjusIed Ior Ihe 2012 plaIIorn nix was 23.1%.
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Pe|ated Priority KP| Performance
|TV Fami|y 5hare of Commercia| |mpacts
(5OC|)
SIraIegic prioriIy 2 ains Io naxinise audience share
Iron our exisIing Iree-Io-air broadcasI business, and lTV
lanily Share oI Connercial lnpacIs (SOCl) is anoIher key
indicaIor oI Ihis. SOCl is Ihe Irading currency in Ihe Ielevision
adverIising narkeI, and since iI only covers connercial
Ielevision iI does noI include Ihe BBC. This is Ihe share oI
IoIal UK Ielevision connercial inpacIs which is delivered by
lTV's Ianily oI channels. An inpacI is one viewer waIching
one 30 second connercial. We ain Io naxinise our SOCl.
2012
3S.3%
% Change
(3)%
2011
39.5%
lTV lanily SOCl was down 3% year on year. lTV's SOCl
was down 5% year on year buI Ihis was parIly oIIseI by
2% growIh on Ihe digiIal channels. lTV's SOCl was also
inpacIed by Ihe exIraordinary year Ior UK Ielevision
viewing.
|TV Fami|y 5hare of Broadcast (5OB)
lTV's share oI UK Ielevision adverIising revenues is known
as iIs Share oI BroadcasI (SOB). To naxinise revenues
Iron our Iree-Io-air business, which is a key conponenI
oI sIraIegic prioriIy 2, we ain Io conIinue Io naxinise
our SOB and Io ouIperIorn Ihe UK Ielevision adverIising
narkeI.
2012
45.S%
Abso|ute Change
0.5%
2011
45.3%
ln 2012, we ouIperIorned Ihe Ielevision adverIising
narkeI again, increasing SOB Io 45.8%. This was due Io
sIrong perIornances by Ihe sales Iean and key shows
conIinuing Io deliver Ihe big audiences and brands IhaI are
nosI denanded by adverIisers. C4 losI share in 2012.
Tota| |ong form video requests
The TransIornaIion llan looks Io drive new revenue sIreans
by exploiIing our conIenI across nulIiple plaIIorns, and
long Iorn video requesIs are a key neasure oI Ihis.
long Iorn video requesIs are a neasure oI Ihe IoIal
nunber oI videos viewed across all plaIIorns (such as iIv.
con, Virgin and nobile devices).
A long Iorn video is a progranne IhaI has been broadcasI
on Ielevision and is available Io waIch online and on
denand in iIs enIireIy.
We have rearIiculaIed our video views Kll as 'video
requesIs'. This is sinply Io have a consisIenI Iern across
new plaIIorns where sone providers counI Ihe consuner
VOD requesIs raIher Ihan Ihe views. Our IoIal long Iorn
video requesIs in 2011 equalled our IoIal long Iorn video
views, so Ihere has been no change Io Ihe prior year
conparaIives.
2012
45Sm
% Change
22%
2011
376m
long Iorn video requesIs were up 22% Io 458 nillion
as we have inproved Ihe qualiIy oI Ihe lTV llayer and
increased Ihe disIribuIion oI our conIenI. lTV conIenI is
now available on 15 plaIIorns. GrowIh in long Iorn video
requesIs has been driven by nobile viewing.
Non-NAP revenues
Growing non-NAP revenues is key Io Ihe TransIornaIion
llan as we ain Io rebalance Ihe business away Iron our
reliance on Ielevision adverIising revenues. Non-NAP
revenues include all lTV revenues, boIh inIernal and
exIernal, excepI neI adverIising revenues (NAP).
2012
1,036m
% Change
12%
2011
922m
We now have over 1 billion non-NAP revenues. These
have grown by over 100 nillion in 2012 as we conIinue Io
rebalance Ihe business. Non-NAP growIh has been driven
by SIudios revenues parIicularly UK and lnIernaIional
lroducIions and Online, lay and lnIeracIive revenues.
Number of new commissions for |TV 5tudios
A key indicaIor oI Ihe creaIive renewal pipeline is Ihe
nunber oI new connissions won. This Igure includes
progrannes shown boIh on lTV and on oIher broadcasIers,
and boIh in Ihe UK and inIernaIionally.
2012
103
Abso|ute Change
(S)
2011
111
ln 2012 we again delivered over 100 new connissions. The IoIal
nunber is down year on year, buI Ihe nunber oI reconnissions
has increased as we Iocus on IornaIs IhaI reIurn.
Percentage of |TV* output from |TV 5tudios
This represenIs Ihe proporIion oI Ihe IoIal spend on
original connissions on lTV IransniIIed in Ihe year,
delivered by lTV SIudios. ln order Io build a sIrong
inIernaIional conIenI business, lTV SIudios needs Io
increase iIs supply oI progrannes Io lTV, where we ain Io
nake Ihen Ianous and Ihen sell Ihen around Ihe world.
* Lxcludes lTV2, 3 and 4.
2012
5S%
Abso|ute Change
3%
2011
55%
The percenIage oI lTV ouIpuI Iron lTV SIudios has
increased again in Ihe year Io 58%. This has beneIIed
Iron Ihe inclusion oI lTV BreakIasI, now IhaI Daybreak and
lorraine are produced by lTV SIudios. Lxcluding Ihe inpacI
oI lTV BreakIasI, iI was up aI 56%.
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Non-NAP revenue
1,036m
(2011: 922m)
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m
2011
n
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n
Change
%
Net Advertising Pevenue ('NAP') 1,510 1,510
Tota| non-NAP revenue 1,036 922 114 12
Tota| revenue 2,546 2,432 114 5
lnIernal supply (350) (292) (58) (20)
Tota| externa| revenue 2,196 2,140 56 3
EBITA before exceptiona| items 520 462 58 13
Adjusted earnings per share 9.2p 7.9p 1.3p 16
Dividend per share 2.6p 1.6p 1.0p 63
5pecia| dividend 4.0p
Net Cash as at 31 December 206 45 161 358
AdjusIed earnings per share represenI Ihe adjusIed proII Ior Ihe year aIIribuIable Io equiIy shareholders, adjusIed proII is
deIned as proII Ior Ihe year aIIribuIable Io equiIy shareholders, beIore excepIional iIens, inpairnenI and anorIisaIion oI
inIangible asseIs acquired Ihrough business conbinaIions, Inancing cosI adjusInenIs and prior year and oIher Iax adjusInenIs.
lisIorically, Ihe Inancial perIornance oI
lTV has been largely dependenI on Ihe
adverIising narkeI. WhilsI sIill incredibly
inporIanI, Ihese resulIs denonsIraIe
IhaI lTV can deliver sIrong proII growIh
even in a IaI adverIising narkeI.
Overall, we delivered exIernal revenue
growIh oI 3% and IoIal revenue growIh
oI 5%. This was driven by non-NAP
revenues, which were up 114 nillion
(12%) as we conIinued Io deliver on our
sIraIegy oI growing and rebalancing Ihe
business. lor Ihe IrsI Iine over 1 billion
oI our IoIal revenue is non-NAP.
SIudios revenues were up 100 nillion
(16%) and Online, lay and lnIeracIive
grew 21 nillion (26%). This good
revenue growIh, in parIicular
Iron higher nargin Online, lay
and lnIeracIive, IogeIher wiIh our
conIinued Iocus on cosIs enabled us
Io reporI a 13% increase in LBlTA and
16% growIh in adjusIed LlS.
We delivered 30 nillion oI cosI
savings in 2012, 10 nillion ahead oI
Ihe iniIial IorecasI. We are doing Ihis
by challenging our cosI base line by
line. These cosI savings have Iunded
Ihe 25 nillion oI invesInenI we
nade across Ihe business in Online,
Iechnology, Ihe rebrand and in
creaIives and Ihe creaIive pipeline, in
line wiIh our Iour sIraIegic prioriIies.
The Iocus on cosIs will renain in
2013 and we will once again expecI
savings Io Iund our invesInenIs in key
iniIiaIives aligned Io Ihe sIraIegy.
Managing our working capiIal
conIinues Io be a Iocus and even wiIh
increased capex we have delivered
proII Io cash conversion oI 95%. This
has led Io a IurIher inprovenenI in our
neI cash, Inishing Ihe year in a posiIive
neI cash posiIion oI 206 nillion.
lnIeresI cosIs conIinue Io reduce as we
inprove Ihe eIIciency oI our balance
sheeI wiIh Ihe bond buybacks in June
2012.
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520m
(2011: 62m)
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(2011: 1,820m)
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PeIail
LnIerIainnenI
& leisure
linance
lood
CosneIics
& ToileIries
TeleconnunicaIions
Cars & Car Dealers
lublishing &
BroadcasIing
Airlines, Travel & lolidays
lousehold SIores
OIher
CaIegory daIa based on IoIal lTV Sold.
The Board has proposed a Inal dividend
oI 1.8p (2011. 1.2p) giving a Iull year
dividend oI 2.6p (2011. 1.6p). The Board
is conniIIed Io a progressive dividend,
Iaking inIo accounI Ihe ouIlook Ior Ihe
business, while balancing Ihe need Io
invesI and Io nainIain a robusI Inancial
posiIion againsI Ihe backdrop oI an
uncerIain econonic environnenI.
ln addiIion Io Ihe Inal dividend, Ihe
Board is proposing a special dividend
oI 4p per share (156 nillion). Over
Ihe lasI Ihree years we have nade
signiIcanI progress in IransIorning Ihe
Group connercially, creaIively and
Inancially. While only parI way Ihrough
Ihe TransIornaIion llan, lTV is now
beconing a beIIer business, delivering
good revenue and proII growIh and
generaIing signiIcanI levels oI cash
which can be reinvesIed Io drive growIh
and deliver shareholder reIurns.
This cash disIribuIion reIecIs Ihe
signiIcanI progress nade and our need
Io reIain a conservaIive and Iexible
balance sheeI while conIinuing Io invesI
Io deliver Ihe TransIornaIion llan.
Going Iorward we will balance capiIal
discipline wiIh Ihe need Io invesI Ior
IuIure growIh and nainIain IexibiliIy.
The renainder oI Ihe linancial
and lerIornance review Iocuses
on Ihe adjusIed resulIs, which in
nanagenenI's view shows our business
perIornance in a nore neaningIul and
consisIenI nanner and reIecIs how
Ihe business is nanaged and neasured
on a daily basis. A reconciliaIion Io
Ihe sIaIuIory resulIs is seI ouI in Ihe
earnings per share secIion.
Broadcast & On|ine
2012
m
2011
n
Change
%
Net Advertising Pevenue ('NAP') 1,510 1,510
SDN exIernal revenues 62 59 5
Online, lay & lnIeracIive 102 81 26
OIher connercial incone 160 170 (6)
Broadcast & Cn|ine non-NAP revenue 324 310 5
Tota| Broadcast & Cn|ine revenue 1,S34 1,820 1
ToIal schedule cosIs (996) (1,004) 1
OIher cosIs (425) (437) 3
Tota| Broadcast & Cn|ine EBITA before
exceptiona| items 413 379 9
ToIal BroadcasI & Online revenues
grew 14 nillion (1%) Io 1,834 nillion
(2011. 1,820 nillion) even in a Ielevision
adverIising narkeI IhaI we esIinaIe
was down 1%. This growIh was driven by
non-NAP revenues, parIicularly Online,
lay and lnIeracIive.
lTV lanily NAP was IaI, again
ouIperIorning Ihe TV adverIising
narkeI. While Ihe Ielevision adverIising
narkeI renains broadly IaI, as iI has
done over Ihe lasI Iew years, Ihere
conIinues Io be volaIiliIy on a nonIh
by nonIh basis and beIween secIors
and we renain cauIious oI shorI-Iern
nonIhly narkeI connenIary.
ln 2012 Ihe caIegories IhaI saw growIh
included Inance, IeleconnunicaIions
and enIerIainnenI speciIcally
price conparison websiIes, online
enIerIainnenI and broadband secIors
which are driven by Iechnology and
increasing online usage by consuners.
PeIail in parIicular elecIrical,
supernarkeIs and Ihe high sIreeI
cosneIic & IoileIries, cars, airlines and
household sIores have all seen declines.
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6'('+*6*() '(-
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non-N/| reven0es
4'& *('25*- 0& )/
oe||ver c 9% |ncrecse
%( D,/'-1'&) E
On||ne F3|1/ w|t|
covert|s|ng jct
Moving Annua| Tota| of NAP Pevenues
Olynpics
Mar 2012 June 2012 SepI 2012 Dec 2012
-15%
-10%
-5%
-0%
5%
10%
15%
20%
MonIhly YOY 12 nonIhs YOY
Luros
SDN exIernal revenues grew by 5%
in line wiIh conIracIual increases as
Ihere were no new conIracIs in 2012.
lowever, we have creaIed a IwelIIh
video sIrean which wenI live in
January 2013.
Online, lay and lnIeracIive revenues
grew sIrongly, up 21 nillion (26%).
WiIhin Ihis, Online revenues have
grown aI around 40% as we have
conIinued Io drive increases in long
Iorn video requesIs Ihrough inproving
Ihe qualiIy oI iIv.con, widening
disIribuIion and enhancing iIs oIIering
wiIh Ihe launch oI Ihe News and SporIs
siIes.
lay revenues have grown signiIcanIly
wiIh Ihe archive deals wiIh NeIIix,
loveIln and Sky which launched
Iowards Ihe sIarI oI 2012 and Ihe caIch
up deal wiIh Sky which launched in
Ihe AuIunn. These build on Ihe deals
already in place wiIh Sky Ior lD versions
oI Ihe digiIal channels and caIch up and
archive deals wiIh BT and Virgin.
OIher connercial incone, which
includes sponsorship, ninoriIy
revenues and nedia sales, are
narginally down year on year.
Margins have conIinued Io inprove
as we nanage Ihe cosI base IighIly.
Schedule cosIs are broadly IaI year
on year and oIher cosIs are down 3%.
We conIinue Io challenge our cosIs
across Ihe business and during Ihe year
reorganised Ihe Online division. ln 2013
we expecI Io deliver IurIher eIIciencies
in our News operaIions.
Our IighI cosI nanagenenI and our
growIh in non-NAP revenues has
enabled us Io deliver a 9% increase in
BroadcasI & Online LBlTA.
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5tudios Pevenue
712m
(2011: 612m)
n
580
700
740
660
620
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|TV 5tudios
2012
m
2011
n
Change
%
UK lroducIions 40S 345 18
lnIernaIional lroducIions 171 141 21
Global LnIerIainnenI 133 126 6
Tota| Pevenue 712 612 16
ToIal SIudios cosIs (605) (529) 14
Tota| EBITA before exceptiona| items 107 83 29
Sales Iron lTV SIudios Io BroadcasI & Online 350 292 20
LxIernal Pevenue 362 320 13
Tota| Pevenue 712 612 16
ln 2012 lTV SIudios again delivered
sIrong organic growIh across all parIs
oI Ihe business. ToIal revenue grew
100 nillion Io 712 nillion (2011. 612
nillion) and LBlTA was 107 nillion.
This reIecIs Ihe invesInenIs nade in
creaIive IalenI over Ihe lasI couple oI
years.
UK lroducIion revenues grew 18% wiIh
growIh on and oII lTV. While Ihere
was good underlying growIh, inIernal
sales now include 33 nillion Iron Ihe
inclusion oI lTV BreakIasI. This reIecIs
Ihe IacI IhaI Daybreak and lorraine are
now produced by lTV SIudios.
On lTV, Ihe delivery oI progrannes
such as TiIanic, Mrs Biggs, Surprise
Surprise, Vera and The Chase drove Ihe
nunber oI new and reIurning drana
and enIerIainnenI connissions. The
nunber oI original hours delivered has
conIinued Io grow, up 23%. OII lTV, UK
revenues have grown wiIh Ihe delivery
oI new progrannes, Ior exanple
SheIland Ior BBC and Special Ops Cops
Ior C5.
lnIernaIional revenues grew very
sIrongly in 2012, up 21% Io 171 nillion
(2011. 141 nillion). All our producIion
bases delivered growIh buI iI was
parIicularly signiIcanI in Ihe US driven
by lell's KiIchen, The Bill Cunninghan
Show, Jereny Kyle and Anerica Now.
AusIralia and lrance also grew sIrongly.
The nunber oI hours oI original conIenI
delivered increased 47% wiIh shows
such as Cone DaIe wiIh Me in AusIralia,
and lour Weddings in lrance.
Global LnIerIainnenI revenues grew
7 nillion (6%) Io 133 nillion (2011.
126 nillion), driven by inIernaIional
Ielevision sales oI dranas such as
TiIanic and lrine SuspecI, which
nore Ihan oIIseI Ihe decline in DVD
sales. The sIrong growIh in UK and
lnIernaIional lroducIion is Ieeding
inIo revenue Ior Global LnIerIainnenI,
by inproving Ihe qualiIy oI Ihe
progranne caIalogue.
The najoriIy oI cosIs in Ihe SIudios
business vary wiIh Ihe levels oI
producIion and IhereIore have
increased in line wiIh acIiviIy. We
conIinue Io run all our producIions as
eIIcienIly as possible and nainIain
a IighI Iocus on overhead cosIs Io
inprove nargins even aIIer Ihe
invesInenI in creaIives we have nade.
This IighI Iocus on cosIs, Ihe change in
progranne nix and Ihe increase in Ihe
level oI reconnissioned progrannes
has helped increase LBlTA Io reach over
100 nillion Ihis year.
ln Ihe second halI oI 2012, lTV nade a
nunber oI acquisiIions aligned Io our
sIraIegy Io sIrengIhen our inIernaIional
SIudios business and build upon Ihe
good organic growIh already achieved.
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
0
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/0"1-".!2,0 4 5'2!2,'!+6
X$"0"1$04 0"% >&*A,*;0"1& L&:$&@ 1,"($"8&%
These acquisiIions were nade againsI
sIricI sIraIegic and Inancial criIeria
including ownership oI inIellecIual
properIy, reIurn on capiIal enployed
and discounIed cash Iow.
We boughI 100% oI Mediacircus AS in
Norway Ior 2 nillion upIronI cash and
TarinaIalo in linland Ior 1 nillion
upIronI cash Io exIend lTV's presence
in Ihe Nordic region. ln AugusI we
boughI So Television Ior 10 nillion Io
help build our enIerIainnenI capabiliIy
in Ihe UK. ln Decenber 2012 we
acquired 61.5% oI Gurney lroducIions,
a US IacIual enIerIainnenI conpany
Ior $40 nillion (25 nillion), Io build
on our sIrengIh and conplenenI
lTV's exisIing posiIion as a producer
Ior najor Ielevision neIworks. There
are puI and call opIions in place over
Ihe renaining 38.5% Iron years 3 Io 5
Iollowing Ihe acquisiIion. As parI oI
Ihe consideraIion Ior all Ihese
acquisiIions, we have agreed Io
IuIure paynenIs on Iop oI Ihe
iniIial consideraIion based upon Ihe
perIornance oI Ihe businesses over
a nunber oI years Io align incenIives
and lock in creaIive IalenI.
The IoIal naxinun consideraIion
is 96 nillion (undiscounIed) Ior all
Ihese acquisiIions which is dependenI
on Ihe IuIure growIh perIornance
oI Ihe business. This includes Ihe
iniIial consideraIion and all deIerred
consideraIion and earnouIs. Given Ihe
Iining oI Ihese acquisiIions, Ihey have
noI had a signiIcanI inpacI on Ihe
2012 resulIs.
Acquisitions
Conpany Geography Genre
lniIial
consideraIion
(n)
ToIal naxinun
consideraIion
(undiscounIed)
(n)
LxpecIed
laynenI
DaIe
Gurney lroducIions US lacIual LnIerIainnenI 25 69 2016-18
So TV UK Conedy and LnIerIainnenI 10 17 2016
Mediacircus Norway lacIual and LnIerIainnenI 2 4 2016
TarinaIalo linland lacIual LnIerIainnenI 1 6 2016
Tota| 38 96
Net financing costs
ln 2012 adjusIed Inancing cosIs were
6 nillion lower Ihan Ihe previous
year as a resulI oI Ihe Iull year inpacI
oI Ihe bonds boughI back in 2011 and
Ihe inpacI oI Ihe bonds boughI back
in June 2012. These savings have nore
Ihan oIIseI Ihe conIracIual sIep up
in Ihe raIe on our 2019 bilaIeral loan.
Cash-relaIed neI Inancing incone
has decreased by 5 nillion due Io a
reducIion in gross cash balance as a
resulI oI Ihe bond buybacks.
NeI Inancing cosIs are 24 nillion
higher prinarily due Io novenenIs in
swap valuaIions. ln 2011 lTV recorded a
16 nillion increase in Ihe value oI iIs
swaps prinarily reIecIing Ihe inpacI
oI lower inplied inIeresI raIes on Ihe
IoaIing raIe porIion oI Ihe swaps. ln
SepIenber 2011 lTV swapped Ihese Io
Ixed raIe swaps Ihereby noving Io a
100% Ixed raIe posiIion and locking in
a neI gain on iIs swaps porIIolio which
accrued during 2011 and previous
years. During 2012 Ihese gains parIially
unwound as cash was realised Iron Ihe
swaps and hence Iheir value reduced by
11 nillion as a resulI.
The losses on buybacks relaIe Io Ihe
excepIional loss on Ihe 275 nillion
bond buyback conpleIed in 2012. ln
2011 sinilar losses were incurred on Ihe
buyback oI cerIain bonds.

2012
m
2011
n
linancing cosIs direcIly aIIribuIable Io loans and bonds (3S) (45)
Cash-relaIed neI Iinancing incone 3 8
Cash-re|ated financing costs (35) (37)
AnorIisaIion oI bonds (9) (13)
Adjusted financing costs (44) (50)
Mark-Io-narkeI on swaps and Ioreign exchange (11) 16
lnpuIed pension inIeresI (9) (5)
losses on buybacks (36) (39)
OIher neI Iinancing cosIs 1 3
Net financing costs (99) (75)
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0 1.0 2.0 3.0p
11
!"
lnIerin Dividend
linal Dividend
!"# $"#
!#" $#%
Dividend
2.6p
(2011: 1.6p)
Tax
The eIIecIive raIe oI Iax applied Io adjusIed proIIs is lower Ihan Ihe sIaIuIory raIe. This is a resulI oI Ihe consisIenI
applicaIion oI our policy Io adjusI Ihe Iax charge Ior losses uIilised in Ihe year Io nore closely reIecI Ihe cash Iax paid in Ihe
year. The eIIecIive Iax raIe oI 23% in 2012 is lower Ihan Ihe sIandard Iax raIe oI 24.5% due Io adjusInenIs nade Ior prior
periods and Ihe recogniIion oI overseas deIerred Iax crediIs (2011. due Io seIIlenenI oI ouIsIanding naIIers in our overseas
business). The IoIal reporIed Iax charge is 80 nillion (2011. 79 nillion).
2012
m
2011
n
lroIiI beIore Iax as reporIed 34S 327
LxcepIional iIens (neI) 12 (1)
AnorIisaIion and inpairnenI oI inIangible asseIs* 49 47
AdjusInenIs Io neI Iinancing cosIs 55 25
Adjusted profit before tax 464 398
2012
m
2011
n
Tax charge as reporIed (S0) (79)
NeI charge Ior excepIional iIens (2)
Charge in respecI oI anorIisaIion and inpairnenI oI inIangible asseIs* (12) (12)
Charge in respecI oI adjusInenIs Io neI Iinancing cosIs (13) (7)
OIher Iax adjusInenIs 2 7
Adjusted tax charge (105) (91)
Effective tax rate on adjusted profits 23% 23%
* ln respecI oI inIangible asseIs arising Iron business conbinaIions.
Cash Iax paid oI 62 nillion (2011. 68 nillion) arises as a resulI oI naking
paynenIs Ior Iaxable proIIs, parIially oIIseI by Ihe use oI losses and Iax
IreaInenI oI allowable pension conIribuIions.
Dividend and shareho|der returns
The Board has proposed a Inal dividend oI 1.8p (2011. 1.2p) giving a Iull year dividend
oI 2.6p (2011. 1.6p). The Board is conniIIed Io a progressive dividend, Iaking inIo
accounI Ihe ouIlook Ior Ihe business, while balancing Ihe need Io invesI and Io
nainIain a robusI Inancial posiIion againsI Ihe backdrop oI an uncerIain econonic
environnenI.
ln addiIion Io Ihe Inal dividend, Ihe Board is proposing a special dividend oI 4p per
share (156 nillion).
!!"#$%"& ##(#!(!"#! )*++, -.+
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Larnings per share
AdjusIed earnings per share is 9.2p (2011. 7.9p). Basic earnings per share is 6.9p (2011.
6.4p). The nain diIIerences beIween reporIed and adjusIed earnings per share are
excepIional iIens, Ihe losses incurred in neI Inancing cosIs Iron Ihe bond buybacks,
adjusInenI Ior Ihe anorIisaIion oI inIangible asseIs acquired Ihrough business
conbinaIions and Ihe Iax eIIecIs oI Ihese.
Peconci|iation between reported and adjusted earnings
PeporIed
n
AdjusInenIs
n
AdjusIed
n
LBlTA beIore excepIional iIens 520 520
OperaIing excepIional iIens (7) 7
AnorIisaIion and inpairnenI oI inIangible
asseIs (60) 49 (11)
NeI Iinancing cosIs (99) 55 (44)
Share oI losses oI JVs and AssociaIes (1) (1)
loss on sale and inpairnenI oI non-currenI
asseIs (excepIional) (6) 6
Gain on sale and inpairnenI oI subsidiaries
and invesInenIs (excepIional) 1 (1)
Profit before tax 34S 116 464
Tax (80) (25) (105)
Profit after tax 26S 91 359
Non-conIrolling inIeresI (1) (1)
Earnings 267 91 35S
Nunber oI shares (nillion) 3,888 3,888
Earnings per share (pence) 6.9p 9.2p
The adjusInenIs shown above renove
Ihe inpacI oI Ihose iIens IhaI, in
nanagenenI's view, do noI show
Ihe perIornance oI Ihe business in a
consisIenI nanner and do noI reIecI how
Ihe business is nanaged and neasured
on a day Io day basis.
AnorIisaIion and inpairnenI oI
inIangible asseIs acquired Ihrough
business conbinaIions is noI included
wiIhin adjusIed earnings. AnorIisaIion
oI soIIware licences and developnenI
is included as nanagenenI considers
Ihese asseIs Io be core Io supporIing Ihe
operaIions oI Ihe business.
LxcepIional iIens are resIrucIuring
cosIs and acquisiIion relaIed expenses,
including proIessional Iees and
conIingenI consideraIion, in relaIion Io
Ihe sIraIegic acquisiIions we nade in
Ihe SIudios business. The Iax and neI
Inancing cosIs secIions oI Ihis review
show Ihe adjusInenIs Io Ihese balances.
! "#$ $#! %#$ &!#!'
&&
!" !"#$
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Adjusted Earnings
per 5hare
9.2p
(2011: 7.9p)
! "#! $#! %#! &#!'
((
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Basic Earnings
per 5hare
6.9p
(2011: 6.p)
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3 C/ D33 E33 4F3 GF3
Net cash tracker
206m
(2011: 5m)
Cash f|ow, working capita| management and positive net cash
Cash f|ow and working capita| management
2012
m
2011
n
EBITA before exceptiona| items ('profit') 520 462
Decrease in progranne righIs and oIher invenIory
and disIribuIion righIs 29
Decrease in receivables 17 52
Decrease in payables (45) (34)
Working capita| movement 1 18
DepreciaIion 27 26
Share-based conpensaIion 9 11
Cash f|ow generated from operations
before exceptiona| items 557 517
AcquisiIion oI properIy, planI and equipnenI
and inIangible asseIs (61) (43)
AdjusIed cash Ilow 496 474
'lroIiI Io cash' raIio 95% 103%
* BeIore excepIional iIens
Over Ihe lasI Ihree years IighI cash and
working capiIal nanagenenI has been
a real Iocus Ior lTV.
ln 2012 we generaIed 496 nillion
oI cash Iron 520 nillion oI LBlTA
beIore excepIional iIens, even aIIer a
signiIcanI increase in capex.
The 'proII Io cash' raIio oI 95% was
again ahead oI Ihe Kll IargeI oI
90% on a Ihree-year rolling basis
Ior Ihe Ihird year in a row. This
perIornance was prinarily Ihrough
IurIher inprovenenIs in invenIory
nanagenenI and a decrease in our
receivables balance. This is due Io
changes in Ihe Iining oI broadcasI
inIrasIrucIure paynenIs and revised
agreenenIs wiIh non-consolidaIed
licensees resulIing in a reducIion in
receivables. This was parIly oIIseI by a
decrease in payables Iron reducIion in
progranne and sporIs righIs crediIors
aI Ihe year end.
Cash spend on acquisiIion oI properIy,
planI and equipnenI and inIangible
asseIs was higher Ihis year due Io Ihe
invesInenI in Iechnology, parIicularly
Ihe deskIop reIresh, and noving Ihe
ManchesIer siIe Io MediaCiIyUK. lI was
noI as high as originally planned as we
negoIiaIed sone oI Ihe cash cosIs inIo
2013. As a resulI oI noving Ihese cash
paynenIs inIo 2013, Capex is likely Io be
aI a sinilar level Io 2012.
Free cash f|ow
2012
m
2011
m
AdjusIed cash Ilow 496 7
NeI cash inIeresI paid (33) (37)
Cash Iax (62) (68)
lension Iunding (72) (8)
lree cash Ilow 329 321
LxcepI where disclosed nanagenenI views Ihe acquisiIion
oI operaIing properIy, planI and equipnenI and inIangibles
as necessary ongoing invesInenI in Ihe business.
lree cash Iow beIore dividends
renains sIrong despiIe Ihe sIep up in
pension Iunding conIribuIions.
The Iree cash Iow reIecIs our
underlying cash generaIion and gives
us IexibiliIy Io invesI in Ihe business.
!!"#$%"& ##(#!(!"#! )*++, -.+
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!""#$% '()*+, $"- !..*#",/ 0120

!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
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X$"0"1$04 0"% >&*A,*;0"1& L&:$&@ 1,"($"8&%
Positive net cash and adjusted
net debt
We ended Ihis year in a posiIive neI
cash posiIion oI 206 nillion (2011. 45
nillion), as a resulI oI our sIrong Iree
cash Iow generaIion.
There is no llPS deIniIion oI neI debI
and our neI cash Igures represenI
our neasure oI Ihis neIric, which is
consisIenI wiIh previous years, Ihis can
be seen in secIion 4.1 oI Ihe linancial
SIaIenenIs.
We have our own deIniIion oI adjusIed
neI debI, along sinilar lines Io Ihe
raIing agencies. lI is an inporIanI
neasure oI Ihe healIh oI Ihe business
as iI capIures our neI cash posiIion
buI also oIher signiIcanI cash
conniInenIs we have Io seIIle aI
sone poinI in Ihe IuIure.
Our adjusIed neI debI is as Iollows.
Adjusted net debt
2012
m
2011
n
NeI cash 206 45
ConIingenI
consideraIion on
acquisiIions (5S)
lension deIiciI (551) (390)
OperaIing leases (51S) (569)
Adjusted net debt (921) (914)
The raIio oI adjusIed neI debI Io
adjusIed LBlTDA is 1.7x.
As can be seen Iron Ihe Iable adjusIed
neI debI includes Ihe naxinun IoIal
conIingenI consideraIion in relaIion
Io Ihe acquisiIions we have nade
in Ihe year (undiscounIed), lAS 19
pension deIciI and operaIing lease
conniInenIs (undiscounIed) Ior
Iransponder and properIy. OI Ihe
properIy lease conniInenIs, 82
nillion is in relaIion Io Ihe london
Television SIudios which no longer exisI
Iollowing our acquisiIion oI Ihe building
in January 2013 Ior 56 nillion.
Liquidity risk and funding
We have IurIher sIrengIhened and
inproved Ihe eIIciency oI our balance
sheeI in 2012. We have delivered
sIrong cash generaIion, we have puI in
place a revolving crediI IaciliIy and we
have boughI back nore bonds.
We conIinue Io look aI opporIuniIies Io
inprove Ihe eIIciency oI Ihe balance
sheeI while nainIaining IexibiliIy Io
invesI in Ihe TransIornaIion llan.
Given Ihe signiIcanI progress we have
already nade, iI is beconing harder.
lor lTV eIIciency is neasured by Ihe
diIIerence in Ihe reIurns we receive
Ior our cash on deposiI and Ihe cosI
oI inIeresI on gross debI ouIsIanding.
CurrenIly we are neI cash posiIive buI
have adjusIed Inancing cosIs oI 44
nillion. We have aIIenpIed Io address
Ihis wiIh 937 nillion oI bond buybacks
and early loan repaynenIs since
OcIober 2009 buI IurIher sIep changes
are beconing harder Io achieve.
Debt structure
ln June we boughI back 275 nillion
noninal oI bonds conprising t138
nillion oI Ihe 2014 bonds, 75 nillion
oI Ihe 2015 bonds and 89 nillion
oI Ihe 2017 bonds. The bonds were
repurchased aI prices above par,
resulIing in an excepIional inIeresI
charge oI 36 nillion, buI will inprove
adjusIed Inancing cosIs going Iorward.
ln 2013 we expecI adjusIed Inancing
cosIs Io be around 35 nillion.
Gross debI repayable is 496 nillion
aI 31 Decenber 2012, having reduced
prinarily as a resulI oI Ihe bond
repurchases.
ln July 2012 we inproved our Inancial
IexibiliIy Iollowing Ihe bond Iender
Ihrough obIaining a conniIIed
250 nillion Pevolving CrediI laciliIy,
provided by a handIul oI long-Iern
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Debt Instruments


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Debt Maturity Profi|e
relaIionship banks, which renains
undrawn. The IaciliIy has a Ihree-year
naIuriIy buI is, subjecI Io agreenenI
by Ihe banks, exIendible by a IurIher
Iwo years.
The IaciliIy conIains leverage and
inIeresI cover covenanIs as is nornal
Ior a IaciliIy oI Ihis naIure.
Financing
Our debI is Inanced using insIrunenIs
wiIh a range oI naIuriIies. Borrowings
aI 31 Decenber 2012 (neI oI currency
hedges and secured gilIs) are repayable
as Iollows.
AnounI repayable n MaIuriIy
t50 nillion Lurobond* 15 June 2014
78 nillion Lurobond 78 OcI 2015
135 nillion ConverIible bond 135 Nov 2016
161 nillion Lurobond 161 Jan 2017
200 nillion Bank loant 62 Mar 2019
linance leases 45 Various
Tota| repayab|e 496
* NeI oI Cross Currency Swaps.
t NeI oI 138 nillion (noninal) GilIs secured againsI Ihe loan.
There are no Inancial covenanIs on any oI Ihe debI insIrunenIs above.
Patings
ln 2012 our crediI raIings conIinued
Io inprove. ln March liIch, SIandard
& loor's ('S&l') and Moody's lnvesIors
Service ('Moody's') upgraded our
long-Iern crediI raIings Iron BB / Ba2
(SIable OuIlook) Io BB+ / Ba1 (SIable
OuIlook). ln AugusI Moody's changed
Ihe ouIlook on lTV's raIings Io posiIive
and in OcIober S&l also changed Ihe
ouIlook Io posiIive.
DespiIe inprovenenIs in Ihe crediI
raIings Iron all Ihree agencies, we
renain sub-invesInenI grade and
would require a noIch upgrade Iron
each agency in order Io resIore
invesInenI grade.
The IacIors IhaI are Iaken inIo accounI
in assessing our crediI raIing include
our degree oI operaIional gearing,
exposure Io Ihe econonic cycle, and
business and geographical diversiIy.
LxecuIing Ihe TransIornaIion llan
should see us conIinue Io sIrengIhen
our posiIion againsI all oI Ihese
neIrics.
Beconing invesInenI grade would
reduce Ihe coupon we paid on Ihe 2017
bond by around 2 nillion and nay
posiIively inpacI our abiliIy Io raise
capiIal in Ihe IuIure.
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IA5 19 Pension deficit
551m
(2011: 390m)
Pensions
|A5 19 - the accounting deficit
The aggregaIe lAS 19 deIciI on
our deIned beneII schenes aI
31 Decenber 2012 was 551 nillion
(31 Decenber 2011. 390 nillion). The
nosI signiIcanI reason Ior Ihe increase
was Ihe conIinued Iall in corporaIe
bond yields (discounI raIe) which
are used Io value Ihe liabiliIies. This
has added 240 nillion Io liabiliIies,
alIhough Ihis was parIly oIIseI by a
reducIion in Ihe raIe oI narkeI inplied
inIaIion.
The lAS 19 deIciI is sensiIive Io
changes in assunpIions, Ior exanple a
0.5% Iall in Ihe discounI raIe increases
liabiliIies by 290 nillion. Over Ihe lasI
Ihree years Ihe decline in Ihe discounI
raIe has added 681 nillion Io Ihe
deIciI, parIially oIIseI by a decrease in
Ihe raIe oI narkeI inplied inIaIion.
The value oI Ihe asseIs oI Ihe lTV
lension Schene ('Ihe Schene')
increased during Ihe year. This gain
has been reduced by Ihe inpacI oI Ihe
adjusInenI in relaIion Io Ihe longeviIy
swap, which is reIecIed as an acIuarial
loss on Ihe asseIs.
lensions conIinue Io be paid Iron Ihe
Schene based on acIual requirenenIs.
Pevised |A5 19 Accounting 5tandard
LIIecIive Iron 1 January 2013, lAS 19 has
been revised and Ihis has Iwo inpacIs.
lirsIly on Ihe service cosI, as Ihe revised
sIandard requires Ihe inclusion oI Ihe
TrusIee's adninisIraIion Iees oI 4.5
nillion and Ihis will be reIecIed in our
operaIing cosIs. Secondly iI inpacIs
Ihe expecIed pension charge reIecIed
in Inancing cosIs which is IorecasI
Io increase Iron 16 nillion in 2012
Io approxinaIely 21 nillion as Ihe
expecIed raIe oI reIurn applied Io
asseIs has been broughI in line wiIh Ihe
discounI raIe applied Io liabiliIies. As is
our currenI policy, Ihis will noI inpacI
adjusIed Inancing cosIs, as we adjusI
Ihis ouI Io Iocus on cash cosIs.
Actuaria| va|uations
lull acIuarial valuaIions are carried
ouI every Ihree years wiIh Ihe laIesI
conpleIe acIuarial valuaIions oI all
Ihree secIions oI Ihe nain deIned
beneII schene carried ouI as aI
1 January 2011 and, on Ihe bases
adopIed by Ihe TrusIee, Ihe conbined
Iunding deIciIs anounIed Io
587 nillion, oI which.
- SecIion A deIciI was 531 nillion or
20% oI Ihe liabiliIies in IhaI secIion,
- SecIion B deIciI was 17 nillion or
13% oI Ihe liabiliIies in IhaI secIion,
- SecIion C deIciI was 39 nillion or
11% oI Ihe liabiliIies in IhaI secIion.
Deficit funding contributions
The Group has agreed wiIh Ihe TrusIee
IhaI Ihe level oI conIribuIions Io Ihe
SecIion A oI Ihe lTV lension Schene
will be a conbinaIion oI Ixed and
perIornance relaIed paynenIs.
The Ixed paynenIs will be as Iollows.
BCDN Y BCDZ
35 nillion per annun plus an
addiIional 5 nillion iI Ihere are no
iniIiaIives in Ihe previous year which
naIerially reduce Ihe deIciI. This has
noI changed Iron Ihe previous Iunding
plan.
BCD[ Y BCDT
48 nillion per annun in 2015
increasing by 0.5 nillion per annun Io
50 nillion per annun in 2019.
BCBC Y BCB[
50 nillion per annun, buI nay be
reduced by Ihe inpacI oI addiIional
proII-relaIed conIribuIions (seI ouI
below).
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The perIornance relaIed conIribuIions
will be calculaIed as Iollows.
BCDB Y BCBC
lI Ihe Group's reporIed LBlTA pre-
excepIional iIens exceed 300
nillion, Ihe Group will increase Ihe
Ixed conIribuIions in Ihe Iollowing
year by an anounI represenIing 10%
oI LBlTA pre-excepIional iIens over
Ihe Ihreshold level. This is subjecI Io
an annual cap which averages Io 70
nillion per annun over Ihe period
2015-2020.
lI Ihe addiIional proII-relaIed
conIribuIions are paid aI Ihe expecIed
raIe Ihen Ihe 50 nillion per annun
Ixed conIribuIions scheduled Io be
paid beIween 2021 and 2025 (inclusive)
nay noI be required.
ln addiIion Io Ihe agreed deIciI
Iunding conIribuIions, Ihe SDN
parInership esIablished in 2010
provides an annual disIribuIion oI
11 nillion Io Ihis secIion oI Ihe
Schene Ior 12 years Iron 2011.
lollowing conpleIion oI acIuarial
valuaIions oI SecIions B and C as aI
1 January 2011 Ihe Group has agreed
wiIh Ihe TrusIee Io nake deIciI
Iunding conIribuIions oI 5.5 nillion
per annun in order Io elininaIe Ihe
deIciIs in Ihese secIions by 31 March
2021.
ln 2013 we expecI Io nake IoIal
deIciI Iunding conIribuIions oI 79
nillion, which is 7n higher Ihan 2012
reIecIing Ihe increase in LBlTA year on
year.
Post ba|ance sheet events
On 25 January 2013, we acquired
Ihe Ireehold oI london Television
CenIre Ior 56 nillion, Ihe Conpany's
headquarIers and sIudios in london. lI
Ihere is any subsIanIial redevelopnenI
oI Ihe siIe in Ihe nexI Ien years,
addiIional paynenIs up Io a naxinun
oI 6.5 nillion could be nade Io Ihe
sellers. lrior Io Ihe purchase, we were
locked inIo a 56 year lease wiIh no
breaks. The purchase gives us IexibiliIy
in our properIy sIraIegy as we conIinue
Io IransIorn and rebalance Ihe
Conpany.
|an Grifhths
Group linance DirecIor
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Pisk management process
lTV's risk nanagenenI approach is
dynanic and conIinues Io be reviewed
and developed.
Our approach covers risks aI all levels
oI Ihe organisaIion and exanines
business risks on boIh a Iop down
and boIIon up basis. The approach
considers risks in Ihree core groups.
- ligh lnpacI, low likelihood (llll)
risks oI low inherenI likelihood
buI where Ihere would be najor
consequences were Ihe risk Io
naIerialise,
- SIraIegic risks would inpacI Ihe
successIul execuIion oI Ihe sIraIegy,
and
- lrocess level risks enbedded
inIo everyday acIiviIy wiIhin Ihe
organisaIion.
The Board regularly reviews Ihe
risk nanagenenI Iranework, iIs
conIenI and iIs operaIions. The
Board is responsible Ior esIablishing
a robusI and appropriaIe process,
including regularly reviewing Ihe risks
Ihenselves. The AudiI ConniIIee
keeps Ihe eIIecIiveness oI Ihe risk
nanagenenI process under review.
The Board conIinues Io review Ihe
appropriaIe risk appeIiIe Ior cerIain
risk Iypes Io ensure lTV is carrying an
accepIable level oI risk.
The ManagenenI Board has overall
responsibiliIy Ior Ihe conIenI and
operaIion oI Ihe risk nanagenenI
Iranework and perIorns regular reviews
oI boIh sIraIegic and llll risks. Lach
sIraIegic risk has been napped Io
one oI Ihe Iour key sIraIegic prioriIies
and, where possible, assigned key risk
indicaIors. Where appropriaIe, Ihe key
risk indicaIors are aligned Io our key
perIornance indicaIors. All sIraIegic
risks are owned by a nenber oI Ihe
ManagenenI Board.
ln 2012 all Ihe llll and sIraIegic risks
were reassessed and reIned Io IurIher
inprove our risk nanagenenI. lrocess
level risks are subjecI Io ongoing review
by inIernal audiI.
lTV's risk noniIoring and niIigaIion
process is enbedded in Ihe running
and review oI Ihe business. Pisks
are prinarily conIrolled Ihrough Ihe
risk nanagenenI process in place.
MiIigaIing acIions have also been
idenIiIed Ior each oI Ihe risks.
L$#W# 0"% V"1&*(0$"($&#
High |mpact, Low Like|ihood risks
Pisk Theme Pisk
Financia| lTV loses iIs crediI sIaIus or lines oI Iunding wiIh exisIing lenders or Ihere is a collapse oI a najor bank
inpacIing Inancial arrangenenIs/availabiliIy oI crediI.
Financia| There is a najor collapse in invesInenI values leading Io a naIerial inpacI on Ihe pension deIciI.
Operationa| A signiIcanI evenI renoves key nanagenenI Iron Ihe business on a long-Iern or pernanenI basis.
Peputation An evenI wiIh public inIeresI IhaI causes signiIcanI repuIaIional and brand danage.
Peputation There is a najor healIh and saIeIy incidenI IhaI resulIs in a signiIcanI loss oI hunan liIe.
Peputation A najor incidenI resulIs in lTV being unable Io conIinue wiIh scheduled broadcasIing Ior a susIained period.
Peputation There is a signiIcanI or unexpecIed change in regulaIion or legislaIion.
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Pisk Theme Pisk 5trategic Priorities
The Market There is a najor decline in adverIising revenues and lTV does noI build
suIIcienI non-NAP revenue sIreans Ihereby signiIcanIly inpacIing lTV's
overall Inancial perIornance.
The Market The Ielevision narkeI noves signiIcanIly Iowards pay Ielevision as a preIerred
nodel, negaIively inpacIing lTV's Iree-Io-air revenues.
The Market A IasIer Ihan expecIed shiII Io Video on Denand, caIch up or oIher new
Iechnologies causes a susIained loss oI adverIising revenue.
Peop|e lTV lacks adequaIe nanagenenI capabiliIy and creaIive IalenI.
Peop|e lTV enployees are noI suIIcienIly engaged in Ihe business Io deliver Ihe
sIraIegy.
Peop|e The exIensive degree oI change IhaI Ihe business will undergo will overload a
snall nunber oI key people.
Organisation/5tructure/
Processes
The business conIinues Io work in silos, resulIing in sub-opIinal decisions being
nade which inpacIs execuIion oI Ihe sIraIegy.
Organisation/5tructure/
Processes
A signiIcanI and high proIle incidenI (e.g. a Iransnission incidenI/najor
regulaIory breach) causes signiIcanI repuIaIion danage Io lTV.
Organisation/5tructure/
Processes
There is a signiIcanI loss oI progranne righIs or lTV Iails Io idenIiIy and obIain
Ihe opIinal righIs packages.
Organisation/5tructure/
Processes
lTV Iails Io creaIe and own a suIIcienI nunber oI hiI progrannes/IornaIs.
Organisation/ 5tructure/
Processes
lTV Iails Io invesI in, develop or operaIe eIIecIively inIernaIional businesses.
Organisation/5tructure/
Processes
lTV loses a signiIcanI volune oI personal or sensiIive daIa due Io an inIernal
breach.
Techno|ogy laIe delivery oI new Iechnology plaIIorns, and heavy reliance placed on legacy
Iechnologies, negaIively inpacIs lTV's abiliIy Io achieve iIs sIraIegic ains.
Techno|ogy CurrenI Iechnological environnenI and business processes are noI suIIcienI Io
supporI Ihe growIh in Online, lay and lnIeracIive services.
Techno|ogy lTV Iails Io ensure appropriaIe business conIinuiIy planning and resilience
wiIhin iIs core sysIens, processes, plaIIorns and Iechnology inIrasIrucIure.
Techno|ogy There is a susIained cyber/viral aIIack causing prolonged sysIen denial or
najor repuIaIional danage.
Bui|d a strong $"0&/")0$-")1
*-"0&"0 business
4
2)3$4$#& )5%$&"*& and
/&.&"5& #6)/& from our existing
free-to-air broadcast business
22
Drive new revenue streams by
&371-$0$"8 our *-"0&"0 across
4510$71& 71)09-/4#, 9/&& and 7):
3 11
Create a 1&)", */&)0$.&1:
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organisation
Create a 1&)", */&)0$.&1:
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organisation
11
5trategic risks
The key sIraIegic risks are Ihose IhaI inpacI Ihe successIul execuIion oI Ihe sIraIegy and as a resulI require regular
ManagenenI Board noniIoring. All oI Ihe sIraIegic risks idenIiIed have been napped Io Ihe Iour sIraIegic prioriIies oI Ihe
TransIornaIion llan and have been grouped by key risk Ihenes.
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Pesponsibi|ity
DirecIors' PeporI
3
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Our CorporaIe PesponsibiliIy
sIraIegy ains Io grow our business
by sIrengIhening sIakeholder pride
and loyalIy in lTV, whilsI conIinuing
Io broadcasI and operaIe responsibly.
Our visibiliIy and reach cones wiIh
signiIcanI responsibiliIy and our
acIions inpacI Ihe lives oI nillions
oI viewers and users oI our services,
IhereIore iI is inperaIive IhaI we
operaIe responsibly as a conpany.
AI a nininun we ain Io conply wiIh
our regulaIors, IulIl our legal obligaIions
and our own policies and procedures.
lowever, as well as niIigaIing risks
Io Ihe business we are also looking
Ior opporIuniIies Io beneII our wider
connuniIy and conIribuIe Io Ihe
susIainabiliIy oI Ihe indusIry Ior lTV and
oIhers. We have an inIernal CorporaIe
PesponsibiliIy governance sIrucIure
and conpany wide policies Io provide a
sIraIegic and consisIenI approach Io our
responsibiliIies. SpeciIc perIornance
IargeIs and indicaIors are used alongside
exIernal benchnarking Iools Io review
progress.
Priorities
Our approach Io CorporaIe
PesponsibiliIy is Io uIilise our posiIion
in Ihe hearI oI our connuniIies Io
drive our key prioriIies.
Pesponsible reach.
- UIilising lTV's unique posiIion as a
regional and naIional broadcasIer
and Ihe repuIaIion oI well-known
progrannes as a vehicle Io raise
awareness and change consuner
behaviour, Ihrough naIional
canpaigns and regional sIories.
OperaIing responsibly.
- Being seen as a responsible indusIry
leader by denonsIraIing Ihe link
beIween responsibiliIy and a
susIainable IuIure. ln parIicular.
UIilising exIernal benchnark
Iools Io inprove lTV's posiIion
and working cross-indusIry Io
share besI pracIice,
SeIIing perIornance IargeIs
where Ieasible and ensuring
Iransparency on resulIs,
SupporIing new and diverse
IalenI and inproving access Io
Ihe indusIry, and
Pecognising and rewarding
enployees' individual
conIribuIions and inpacI on Ihe
connuniIy and environnenI.
lor inIornaIion denonsIraIing Ihe
inpacI oI our CorporaIe PesponsibiliIy
in Ihe year, Ihe drivers oI Ihese
prioriIies, and speciIc ains and
neasures around Ihe sIraIegy, please
visiI our CorporaIe PesponsibiliIy websiIe.
www.itvp|c.comlresponsibi|ity
Performance summary
We recognise Ihe inporIance oI
undersIanding and evaluaIing Ihe
inpacI our Conpany's operaIions have
on iIs people, cusIoners, suppliers,
Ihe connuniIy and Ihe environnenI.
Below is a brieI sunnary oI sone oI
our policies, perIornance indicaIors,
achievenenIs and inpacI in 2012.
lor IurIher deIails please see Ihe
CorporaIe PesponsibiliIy websiIe.
Peop|e and diversity
PeIaining and aIIracIing IalenI is
key Io Ihe success oI lTV and as such
iI is boIh a risk and a prioriIy. lI is
IhereIore inperaIive IhaI we provide
rewards and opporIuniIies Ior work
and developnenI as well as proIecIion
Iron harn and discrininaIion. By
naking our people Ieel proud oI lTV,
Ihey are ulIinaIely nore engaged and
conniIIed Io working Ior us.
O0r /ccess Serv|ces tecm, S|gn|ost, |cve oe||vereo
'( '8',- 8%((%(+ 8*2&%)* Y ?%+(*-?)/,%*&31/6A
6'9%(+ 2//9& '11*&&%25* )/ -*'< '(- 4*',%(+
14%5-,*(3
|n 2013's Work|cce Fq0c||ty |noex we remc|n |n t|e
)/. HGG %(-*B '(- <*')0,* '& )4* /(5= D,/'-1'&)*,3
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We conIinue Io neasure and lisIen
Io our people Ihrough our enployee
survey and enployee engagenenI has
increased again in 2012 Io 88% Iron
85% in 2011.
DiversiIy in skills, experience and in Ihe
nake-up oI our workIorce is essenIial
Io produce creaIive conIenI and qualiIy
progrannes IhaI appeal Io as wide an
audience as possible. lI is in our inIeresI
Io invesI in progranne naking ouIside
london and Io ensure we proacIively
seek Io build an inclusive workIorce
IhaI reIecIs our poIenIial viewership.
Our diversiIy policy reIecIs Ihe
LqualiIy AcI 2010 and ains Ior equaliIy
around gender, MariIal and Civil
larInership, race, religion and belieI,
disabiliIy, age, sexual orienIaIion and
gender reassignnenI. lTV is recognised
as a posiIive enployer, holding Ihe
'Two-Tick' disabiliIy synbol and
nainIaining iIs sIaIus as Ihe only
broadcasIer in SIonewall's Top 100
Workplace LqualiIy lndex.
#$%&'()*+ '%$-.(+ /01
!"#! 2011
LIhnic ninoriIy
enployees #"$% 9.1
Lnployees wiIh a
disabiliIy !$& 2.9
Lnployees aged
over 50 #' 15
lesbian, gay
and bisexual
enployees ($) 4.9
lercenIages based on Ihose who declared relevanI
inIornaIion (approxinaIely 75% oI workIorce).
2+)(34 )56 7)-+38
The lealIh and SaIeIy (l&S) oI
enployees, conIracIors and visiIors
aI lTV is always a high prioriIy. The
signiIcanI loss oI hunan liIe as Ihe
resulI oI a najor l&S incidenI has
been idenIiIed as a speciIc risk Io
Ihe organisaIion. The l&S Iean
conIinue Io use a nanagenenI
sysIen IhaI neeIs Ihe speciIc
risk proIle oI Ihe business which is
supporIed by a conprehensive Iraining
progranne and connunicaIed across
Ihe business.
2+)(34 )56 7)-+38 9 '+%-$%:)5*+
.56.*)3$%7
!"#! 2011
losI Iine accidenIs
reporIed under
PlDDOP* * 8
Major accidenIs (as
deIined by PlDDOP) + 2
laIal accidenIs " 0
* As oI ' -./01 !"#!, PlDDOP's over-Ihree-day injury
reporIing requirenenI changed Io over-seven-day
reporIing our Igures reIecI Ihis change.
lor nore deIail on lTV's Iraining and
new IalenI progrannes, diversiIy and
equal opporIuniIies acIiviIies, healIh
and saIeIy nanagenenI sysIen and
inplenenIaIion visiI Ihe CorporaIe
PesponsibiliIy websiIe.
!"# !%&' (%)*+%,%-. )./+#, *"*0121 3#0 -42 )%5-4
.2*0 0677%78 9 12/#7)-0*-%78 #60 &#//%-/27-
*0#671 (%)*+%,%-. %7 02&06%-/27- *71 :2#:,2;
!4%) .2*0 "2 "202 *"*0121 * <=%8 !%&'> +. =6)%72))
%7 -42 ?#//67%-. 3#0 #60 @#0' A7):%0*-%#7
:0#80*//2 3#0 .#678 :2#:,2;
licIured.
We |nvest s|gn|ccnt|y |n oort0n|t|es cno
12B2,#:/27- #3 72" -*,27-; CDE #3 A!F>)
*::027-%&2) "4# &#/:,2-21 -42%0 -0*%7%78 %7 DGHD
8*%721 2/:,#./27- "%-4 6)
ITV Annual Report 2013 - Front.indd 53 06/03/2013 08:48:33
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Customers
Our key cusIoners are our viewers
across various plaIIorns, our
adverIisers and oIher broadcasIers
who buy our conIenI.
We seek Io naxinise audience and
revenue share Iron our Iree-Io-air
business, as laid ouI in lrioriIy 2 oI Ihe
TransIornaIion llan. To nanage Ihe
risk and grow our revenue iI is essenIial
IhaI we undersIand our viewers,
neeI Iheir expecIaIions and deliver
naxinun value boIh Io Ihen and Ihe
adverIisers.
All UK progrannes conply wiIh Ihe
OIcon BroadcasIing Code in relaIion Io
Iheir conIenI and scheduling.
ln 2012 OIcon Iound 6 breaches oI
Ihe code conpared Io 12 in 2011. All
breaches are responded Io and where
breaches reveal shorIconings in our
ediIorial or conpliance processes we
will ensure changes are inplenenIed.
We conIinue Io use a Iornal approach
Io gaIhering Ieedback Ihrough a
Vision lanel and regional audience
panels. We also have a sIrucIured
viewer Ieedback process. All queries are
escalaIed Io Ihe person accounIable
and responded Io.
We conIinue Io deliver access services
across our Ianily oI broadcasI channels
beyond Ihe IargeIs seI by OIcon
Ior subIiIling, signing and audio
descripIion. lor nore inIornaIion
on our services, IargeIs and how lTV
has naxinised iIs in-house IaciliIy
SignlosI Io provide award-winning
connuniIy services, visiI Ihe CorporaIe
PesponsibiliIy websiIe.
Access services for |TV
(% of programmes)
2012 2011
SubIiIling 90% 98%
Audio descripIion 10% 19%
Signing 5% 6%
5upp|iers
We conducI business wiIh a large
varieIy oI suppliers and endeavour
Io do business on Ierns IhaI are
considered Iair and reasonable. To
ensure we Irade responsibly, we
draw up conIracIs wiIh suppliers,
which incorporaIe indusIry-sIandard
environnenIal and l&S sIandards.
lI is in Ihe Conpany's besI inIeresI
Io ensure we have IransparenI and
eIIecIive relaIionships wiIh
suppliers, in parIicular Ihose wiIh
whon we work regularly, such as
suppliers oI ouIsourced services and
key suppliers oI progranning and
broadcasIing progranne righIs.
Managing supplier relaIionships is
a key parI oI our business sIraIegy
and is Ihe responsibiliIy oI boIh Ihe
connissioning and connercial Ieans
and our cenIral procurenenI Iean.
We have a varieIy oI suppliers who are
key Io Ihe business. A nunber oI Ihe
Conpany's najor suppliers are involved
in Ihe broadcasI oI lTV's Ianily oI
channels and include Arqiva, SLS AsIra
and BT. OIher key suppliers include.
Mace Group, Gerald Lve lll, AccenIure
and Lricsson.
Key suppliers oI progranning and
broadcasIing progranne righIs include
lTN, who provide lTV's naIional news
progrannes, lrenanIle who produce
BriIain's GoI TalenI and The X lacIor
Ior lTV, Ihe looIball AssociaIion, NBC
Universal SIudios and Arena Television.
licIured.
TexI SanIa
"*B) ?'()' %& '5&/ ' ),0* *B'6.5* /< ZC(* !"#S 84*,*
!"# D,/'-1'&)A !"# ?)0-%/& '(- 1/55*'+0*& 1/6*
)/+*)4*, )/ 20%5- '8',*(*&& </, 1*,)'%( 14',%)%*& '(-
%(&.%,* &/1%'5 '1)%/( 8%)4%( /0, 1/660(%)=3
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Community and
Charitab|e giving
As a broadcasIer and producer oI
sone oI Ihe naIion's nosI popular
progrannes, we recognise Ihe power
oI our brand, our nass audience appeal
and our abiliIy Io chanpion issues on a
naIional level.
During 2012, our acIiviIies have ranged
Iron chariIable giving Io donaIions Ior
speciIc progrannes and canpaigns.
ln all, lTV has conIribuIed 1.7 nillion in
cash (2011. 1.5 nillion) and 3.3 nillion
in kind (2011. 3.4 nillion).
ln 2012, we have used our abiliIy Io
engage viewers Io help Io creaIe
visibiliIy, loyalIy and proIle Ior a
selecIed nunber oI chariIies who we
work in parInership wiIh. This helped Io
raise over 10.5 nillion Ior independenI
chariIies, Ihrough our call Io acIion
canpaigns such as TexI SanIa, which
we launched in 2011 , and Soccer Aid.
TexI SanIa is also a Irue exanple oI 'One
lTV' where lTV BroadcasI, lTV SIudios
and colleagues cone IogeIher Io build
awareness Ior cerIain chariIies and
inspire social acIion wiIhin our local
connuniIies.
More inIornaIion on acIiviIy wiIhin
Ihe connuniIy, chariIable giving,
donaIions raised and Ihe organisaIions
which we supporI can be Iound
on ourCorporaIe PesponsibiliIy
websiIe.
lI is Ihe Conpany's policy noI Io nake
cash conIribuIions Io any poliIical
parIy. lowever, wiIhin Ihe nornal
acIiviIies oI Ihe Group's naIional and
regional news-gaIhering operaIions
Ihere nay be occasions when an
acIiviIy nay Iall wiIhin Ihe broader
deIniIion oI 'poliIical expendiIure'
conIained wiIhin Ihe Conpanies AcI
2006. Shareholder auIhoriIy Ior such
expendiIure was given aI Ihe 2011
Annual General MeeIing. lowever,
during 2012 Ihe Group nade no
paynenIs Ialling wiIhin Ihis deIniIion
(2011. nil).
Lnvironment
Our oIIces and producIions have a direcI
inpacI on Ihe environnenI Ihrough
energy consunpIion, waIer use and
wasIe producIion. We are also indirecIly
responsible Ior Ihe environnenIal
inpacIs oI connissioned progrannes,
and oI Ihe suppliers IhaI provide us wiIh
goods and services.
ln conpliance wiIh Ihe GovernnenI's
Carbon PeducIion ConniInenI Lnergy
LIIciency Schene we are conniIIed
Io reducing our environnenIal
IooIprinI. Year on year our
environnenIal perIornance indicaIors
have inproved, excepI Ior our C0
2

enissions Iron business Iravel which
has increased as we have becone a
nore inIernaIional business.
Our ain is Io responsibly work Iowards
a nore susIainable IuIure, reducing cosI
and building our brand repuIaIion in
Ihis area. Our LnvironnenIal policy and
plans on how we are working Io achieve
our ain can be Iound on Ihe CorporaIe
PesponsibiliIy websiIe.
Lnvironmenta| performance indicators
1
2012 2011 2010 2009
ToIal CO
2
enissions Iron business Iravel
(Ionnes) 7,SS4 4,921 5,774 6,831
ToIal CO
2
enissions (Ionnes)
2
36,74S 43,051 44,427 46,383
ToIal wasIe (Ionnes) 1,256 1,724 1,807 2,195
ToIal wasIe recycled 72% 85% 60% 65%
ToIal waIer use (n
3
) 60,502 81,891 87,017 86,656
1
UK only, assisIance wiIh daIa conpleIion by UIilyx lId (independenI energy consulIanIs).
2
CalculaIed in accordance wiIh Ihe WPl/WBCSD Greenhouse Gas lroIocol neIhodology.
VisiI Ihe CorporaIe
PesponsibiliIy websiIe @
www.itvp|c.coml
responsibi|ity
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DirecIors' PeporI
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Chairnan
"--)&,.*',. .) .%' /)+#0
1 January 2010
"1' 58
2)**&..'' *'*3'#4%&-
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PenuneraIion
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narkeIing, inIernaIional business
and corporaIe Inance
98.'#,+: +--)&,.*',.4
- DirecIor oI TargeI lId (2011)
- Adviser Io WesIarners liniIed
(2009)
- DirecIor oI Coles Group (2007)
- lounder, Aurigo ManagenenI
larIners lll (2006)
- Senior Adviser Io lazard (2003)
- Governor, NaIional lnsIiIuIe oI
Lcononic and Social Pesearch
(1997)
;#'<&)=4 '8-'#&',$'
- Chairnan, lSS lire Services
Group (2007 - 2012)
- Chairnan, Lnergis
(20022005)
- Shadow SecreIary oI SIaIe Ior
DeparInenI oI LnvironnenI,
TransporI and Ihe Pegions
(20002001), Shadow MinisIer
Ior Lurope (19992000),
ChieI LxecuIive and DepuIy
Chairnan oI Ihe ConservaIive
larIy (19981999), Menber
oI larlianenI (19972005
lounder, lolicy Lxchange
(2001)
- ChieI LxecuIive (19911996)
and Chairnan (19962000),
ASDA Group plc
- linance DirecIor, KingIsher plc
(19861991)
- Chairnan, CharIwell land plc
(19871991)
- Non-execuIive direcIor oI
BriIish Pail (19921994),
PailIrack plc (19942000), and
GeesI plc (19881991)
- larIner, McKinsey and Co
(19791986)
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"1' 49
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5'6 +#'+4 )7 -#&)# '8-'#&',$'
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nanagenenI
98.'#,+: +--)&,.*',.4
- Non-execuIive direcIor oI G4S
plc (2013)
;#'<&)=4 '8-'#&',$'
- Non-execuIive direcIor oI
Debenhans plc (20062012)
- Group ChieI LxecuIive, Poyal
Mail Group (20032010)
- Non-execuIive direcIor oI
CaneloI Group plc (2007
2010)
- ChieI LxecuIive oI Ihe looIball
AssociaIion (20002002)
- Joined SaaIchi & SaaIchi
AdverIising in 1988, JoinI ChieI
LxecuIive (19951998)
?+, @#&77&.%4
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"--)&,.*',. .) .%' /)+#0
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"1' 46
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5'6 +#'+4 )7 -#&)# '8-'#&',$'
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resIrucIuring
98.'#,+: +--)&,.*',.4
None
;#'<&)=4 '8-'#&',$'
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Lnap plc (20052008)
- Senior linance roles held
wiIhin Lnap plc including
direcIor oI Inancial conIrol
(20002005) and head oI
Inance aI Lnap Business
ConnunicaIions (19952000)
- Manager in audiI and
corporaIe Inance, LrnsI &
Young (19881994)
A&B' 2:+4-'# 2/9
Senior lndependenI DirecIor
"--)&,.*',. .) .%' /)+#0
3 January 2006
"1' 59
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5'6 +#'+4 )7 -#&)# '8-'#&',$'
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nanagenenI
98.'#,+: +--)&,.*',.4
- Chairnan oI Which lId (2008)
- Governor oI PSC (2011)
;#'<&)=4 '8-'#&',$'
- Chairnan oI lM Pevenue &
CusIons (20082012)
- Menber oI Ihe lnvesIor Board
oI LMl Group (20072008)
- OperaIional nanaging direcIor
oI Terra lirna (2008)
- Menber oI Ihe NaIional
LnploynenI lanel (2006
2008)
- lounder nenber oI Ihe
CorporaIe leaders Group on
ClinaIe Change
- ChieI execuIive oI BAA plc
(20032006), depuIy chieI
execuIive oI BAA plc (2001
2003)
- lresidenI oI Global lone Care,
lrocIer & Ganble (19992001)
- Chairnan oI Ihe WesI london
ConsorIiun (20062011)
1 2 3 4
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developnenI oI business sIraIegy
and Inance
98.'#,+: +--)&,.*',.4
- DirecIor oI LMl Global Group
(2011)
- DirecIor oI The John lopkins
UniversiIy
- DirecIor oI Ihe SongwriIers
lall oI lane
;#'<&)=4 '8-'#&',$'
- ChieI LxecuIive OIIcer oI LMl
Group liniIed (20102012)
- Chairnan and CLO oI LMl
Music lublishing (20072010)
- DirecIor oI LMl Group llc
(20022008)
- 1994 Io 2007 various roles
aI LMl including Senior Vl,
Business DevelopnenI and
SIraIegy, lresidenI oI LMl
Music lublishing
- lrior Io 1994 held Inance,
operaIions and general
nanagenenI posiIions wiIh
SoIheby's, lucas lilns, Tri-
SIar and Colunbia licIures.
Overseas appoinInenIs
aI Music Choice (DigiIal
Cable Padio) (chairnan oI
PenuneraIion ConniIIee),
Ihe Anerican SocieIy oI
Conposers and AuIhors and
lanciI Media LnIerIainnenI
lId in Ihe US, Chairnan oI VlVA
Television in Gernany and a
direcIor oI Channel V NeIworks
in Asia
",06 E+4.'
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"--)&,.*',. .) .%' /)+#0
11 AugusI 2008
"1' 51
2)**&..'' *'*3'#4%&-
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(Chairnan)
5'6 +#'+4 )7 -#&)# '8-'#&',$'
lnIernaIional and energing
narkeIs, change nanagenenI,
resIrucIuring and business
Iurnaround
98.'#,+: +--)&,.*',.4
- Senior lndependenI DepuIy
Chairnan, Council oI lloyd's
(2012)
;#'<&)=4 '8-'#&',$'
- Group ChieI LxecuIive oI PSA
lnsurance Group plc (2003
2011)
- ChieI LxecuIive oI AXA Sun liIe
plc (19992003)
- DirecIor oI AXA UK plc (liIe and
pensions) (19992003)
- lresidenI and CLO, GL CapiIal
Global Consuner linance UK,
WesIern Lurope and LasIern
Lurope (19981999)
- CLO, GL CapiIal Global
Consuner linance UK
(19961998)
- lresidenI oI NaIional
WesIninsIer Bank US
Consuner CrediI Business
(19951996), senior vice-
presidenI and head oI US
Consuner loan lroducIs
Division (19921995)
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"1' 60
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connunicaIions, legal and
regulaIory issues
98.'#,+: +--)&,.*',.4
- Menber, lwC Advisory Board
(2013)
- lresidenI, Luro Connerce,
Brussels (2012)
- Menber oI Ihe CoaliIion
GovernnenI's LIIciency and
PeIorn Board (2010)
- Menber oI China-BriIain
Business Council (2007), UK-
lndia Business Council (2008)
- Menber oI UK Trade and
lnvesInenI SIraIegic Advisory
Group (2011)
- Governor, london Business
School
;#'<&)=4 '8-'#&',$'
- Non-execuIive direcIor, The
Carbon TrusI (2008-2013)
- LxecuIive DirecIor, CorporaIe
and legal AIIairs, Tesco plc
(20062013)
- DepuIy Chair, BriIish PeIail
ConsorIiun (19982012)
- Chairnan, Dobbies Garden
CenIres (20072011)
- Group DirecIor oI CorporaIe
AIIairs (19972006) and
Conpany SecreIary (2004
2006), Tesco plc
- DirecIor oI DeregulaIion
UniI, BlS and CabineI OIIce
(19951997)
- Menber oI lrine MinisIer's
lolicy UniI (19921994)
- MinisIry oI AgriculIure,
lisheries and lood (19731992)
J)%, K#*'#)0
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"--)&,.*',. .) .%' /)+#0
18 January 2008
"1' 64
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PenuneraIion
5'6 +#'+4 )7 -#&)# '8-'#&',$'
linancial experience, developing
sIraIegy and growIh
98.'#,+: +--)&,.*',.4
- Non-execuIive Chairnan oI
Tribal Group plc (2010, direcIor
Iron 2009)
- Non-execuIive direcIor and
chairnan oI audiI conniIIee
oI GenalIo NV (2006) and
ConpuIacenIer plc (2006)
;#'<&)=4 '8-'#&',$'
- Senior independenI direcIor
and chairnan oI audiI
conniIIee aI Misys plc
(20052012)
- TrusIee oI Ihe Design Museun
(20062012)
- Non-execuIive direcIor and
chairnan oI Merlin Clains
Services loldings liniIed
(20072010)
- Non-execuIive direcIor oI
NegaIive LquiIy lroIecIion
loldings liniIed (20072009),
Millen Group liniIed (2007
2009) and BMS AssociaIes
liniIed (20042008)
- Menber oI audiI and reIail risk
conIrol conniIIees and lBOS
plc (20052008)
- TrusIee oI The Poundhouse
TrusI (20032008)
- Chairnan oI Walbrook Group
(20042007)
- Chairnan oI audiI conniIIee,
TransporI Ior london
(20042006)
- lracIice senior parIner,
london, DeloiIIe & Touche
(20022004)
- Pegional nanaging parIner,
UK and lreland and senior
parIner, UK, ArIhur Andersen
(20012002)
- leld various posiIions wiIhin
ArIhur Andersen Iron 1970
S
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"--)&,.'0
January 2011
"1' 43
;#'<&)=4 '8-'#&',$'
laul joined lTV in 2011 having spenI Iwo years
in Malaysia as ChieI Technology OIIcer oI
AsIro, Asia's leading layTV operaIor and cross
nedia conpany. lrior Io AsIro laul was luIure
Media and Technology ConIroller Ior BBC
Vision and has held several roles during his 9
years aI BSkyB including Technology DirecIor
and DevelopnenI and OperaIions DirecIor.
2
",06 F)6:'
Group lP DirecIor
"--)&,.'0
January 2009
"1' 45
;#'<&)=4 '8-'#&',$'
Andy becane Group lP DirecIor in 2009,
having joined lTV as lP OperaIions DirecIor
in 2007. lrior Io joining lTV, Andy was lP
DirecIor oI Morrison plc and held a series oI
lP and general nanagenenI roles
in organisaIions experiencing signiIcanI
change, including UNlTL Group and Tricon
PesIauranIs lnIernaIional.
3
A+#6 D+1+,
Group ConnunicaIions and
CorporaIe AIIairs DirecIor
"--)&,.'0
January 2011
"1' 55
;#'<&)=4 '8-'#&',$'
Mary joined lTV Iron Ihe Poyal Mail Group,
where she was CorporaIe and GovernnenI
AIIairs DirecIor Iron Decenber 2003. A senior
CiIy and Business journalisI wiIh nore Ihan 20
years' experience, Mary's previous roles included
DepuIy CiIy LdiIor oI Ihe Sunday Telegraph,
lndusIrial CorrespondenI Ior Ihe lndependenI
and CiIy PeporIer aI Ihe Lvening SIandard.
1 2 3
4
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DirecIor oI Television, Channels and Online
"--)&,.'0
May 2008
"1' 56
;#'<&)=4 '8-'#&',$'
leIer joined lTV Iron Ihe BBC where he was
ConIroller oI BBC One. le began his career
in broadcasIing aI independenI producIion
conpany, Talkback lroducIions, where he
becane Managing DirecIor in 1986. ln 2001
Talkback lroducIions was sold Io lrenanIle
Media and in 2003 leIer becane ChieI
LxecuIive oI Ihe newly nerged conpany
TalkbackThanes.
5
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Group legal DirecIor and Conpany SecreIary
"--)&,.'0
Novenber 2007
"1' 46
;#'<&)=4 '8-'#&',$'
Andrew joined lTV as Group legal DirecIor
in 2007 and Iook on Ihe addiIional role oI
Conpany SecreIary in 2009. lreviously Andrew
was a larIner in Ihe corporaIe deparInenI oI
leBoeuI lanb's london oIIce. lrior Io joining
leBoeuI lanb, Andrew was Group General
Counsel and Conpany SecreIary aI Cable &
Wireless llC where he was a nenber oI Ihe
Group LxecuIive responsible Ior Global legal.
lrior Io IhaI he was Global lead oI legal and
DepuIy General Counsel oI PeuIers Group llc in
Ihe UK, and beIore IhaI, General Counsel Asia.
4 5
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Online and lnIeracIive
"--)&,.'0
AugusI 2010
"1' 49
;#'<&)=4 '8-'#&',$'
lrior Io joining lTV, lru was ChieI LxecuIive
oI GCap Media llc unIil iI was sold Io Global
Padio in 2008. ler previous posiIions include
ChieI LxecuIive oI Virgin Padio, Managing
DirecIor oI Yahoo UK and Luropean Connercial
DirecIor oI Yahoo Lurope.
7
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Managing DirecIor, lTV SIudios
"--)&,.'0
AugusI 2010
"1' 57
;#'<&)=4 '8-'#&',$'
BeIore joining lTV Kevin spenI nuch oI his
career aI Channel 4 nosI recenIly as DirecIor
oI Television and ConIenI which included
responsibiliIy Ior Channel 4 Group's porIIolio oI
channels. Kevin's previous roles include DirecIor
oI lrogrannes aI Channel 5 as well as a nunber
oI posiIions aI Ihe BBC, including lead oI
lndependenI Connissioning Ior LnIerIainnenI.
S
M&*), ;&..4
DirecIor oI SIraIegy and TransIornaIion
"--)&,.'0
January 2011
"1' 37
;#'<&)=4 '8-'#&',$'
Sinon joined lTV in 2000 and has held roles in
lTV's lublic AIIairs, PegulaIory and New Media
deparInenIs beIore joining Ihe SIraIegy Tean
in 2007. le was pronoIed inIo his currenI role
in January 2011, Ihe nain Iocus oI which is Io
nanage lTV's Ive year TransIornaIion llan
and run SDN, lTV's digiIal nulIiplex business.
lrior Io lTV, Sinon worked in Ihe Luropean
larlianenI in Brussels where he specialised in
nedia issues.
6 7 S
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@/24 A$24/$%BC/4D
The Board oI lTV believes IhaI corporaIe governance is
inporIanI in ensuring iIs eIIecIiveness. lI has an esIablished
Iranework oI policies and processes IhaI are regularly
reviewed againsI developnenIs in Ihe legislaIive, regulaIory
and governance landscape.
This governance reporI conprises Ihe Iollowing secIions.
- low Ihe Board works
- LIIecIiveness
- AccounIabiliIy
- PelaIions wiIh shareholders
- AudiI ConniIIee PeporI
- PenuneraIion PeporI
+$/ 4%B/ %E &$/ F%24C
The Board's nain role is Io work wiIh Ihe execuIive Iean,
providing supporI and advice Io conplenenI and enhance
Ihe work underIaken. The Board consisIenIly challenges
processes, plans and acIions in order Io pronoIe conIinuous
and susIained inprovenenI across Ihe business.
+$/ GH I%4J%42&/ 7%8/4929:/ I%C/
As a lisIed conpany, lTV is required Io reporI on how iI has
conplied wiIh Ihe principles oI governance seI ouI in The UK
CorporaIe Governance Code 2010 (Ihe Code).
l an pleased Io reporI IhaI lTV has conplied wiIh Ihe
provisions oI Ihe Code IhroughouI Ihe year ended
31 Decenber 2012.
K4:$L/ M%4N29
Chairnan
27 lebruary 2013
!"# %&'() *#+,#-#. /"'/
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We nainIain a corporaIe websiIe aI www.itvp|c.com
conIaining a wide range oI inIornaIion Ior insIiIuIional and
privaIe invesIors including.
- laIesI news and press releases
- Annual reporIs and invesIor presenIaIions
- Governance docunenIs
lurIher inIornaIion Ior shareholders is seI ouI on pages
157 Io 159.
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T34 4%B/
The Board as a whole is collecIively responsible Ior delivering
Ihe long-Iern success oI Ihe Conpany by.
- providing enIrepreneurial leadership wiIhin a Iranework
oI prudenI and eIIecIive conIrols which enable risk Io be
assessed and nanaged,
- supporIing Ihe execuIive Iean Io IornulaIe and execuIe
Ihe Conpany's long-Iern objecIives and sIraIegy,
ensuring IhaI Ihe necessary Inancial and oIher resources
are in place Ior Ihe Conpany Io neeI iIs objecIives, and
reviewing nanagenenI perIornance, and
- seIIing Ihe Conpany's values and sIandards and ensuring
IhaI iIs obligaIions Io iIs shareholders and oIhers are
undersIood and neI.
There is a schedule oI speciIc naIIers reserved Io Ihe Board
Ior decision which is available on our websiIe aI www.itvp|c.
comlaboutlgovernance.
T34 N//&L9U5
The nunber oI neeIings held during Ihe year and
aIIendance oI DirecIors is seI ouI in Ihe Iable on page
65. The Board agrees an annual schedule oI naIIers iI
wishes Io consider aI each oI iIs neeIings and Ihose oI iIs
conniIIees. The schedule ensures IhaI all relevanI naIIers
Ior Ihe Board are considered and receive appropriaIe
aIIenIion. MeeIings are nornally held aI one oI Ihe london
siIes and aI leasI once a year Ihey are held aI one oI Ihe
regional or inIernaIional oIIces. ln 2012 Ihe Board neI
colleagues in ManchesIer where Ihey were able Io see Ihe
developnenIs aI Media CiIy.
Board neeIings are sIrucIured around Ihe Iollowing areas.
- OperaIional and IuncIional updaIes
- linancial updaIes
- SIraIegy and risk
- lrogress againsI TransIornaIion llan prioriIies
- OIher reporIing and iIens Ior approval
- leedback Iron conniIIees
Senior execuIives and oIher colleagues are regularly inviIed
Io aIIend neeIings Ior speciIc iIens. ln addiIion Io Iornal
Board and ConniIIee neeIings, neeIings Iake place
beIween.
- Board nenbers and ManagenenI Board nenbers
- Chairnan and non-execuIive DirecIors (Ihe ChieI
LxecuIive is soneIines inviIed Io aIIend)
- Senior lndependenI DirecIor and non-execuIive DirecIors
(wiIhouI Ihe Chairnan presenI)
O$2& R/ $28/ C%9/ L9 ?=>?
Sone oI Ihe Ihings Ihe Board has Iocused on during 2012
include.
UK and inIernaIional conIenI sIraIegy
lay sIraIegy
lurIher review oI news sIraIegy
Pebrand
Succession planning
Governance and board perIornance
#B295 E%4 ?=>P
Sone oI Ihe Ihings Ihe Board is planning Ior 2013 include.
BroadcasI sIraIegy
Pisk appeIiIe, proIle and niIigaIion
live year plan review
F%24C I%NJ%5L&L%9
Executive
?!V
Non-executive
6!V
Pead nore on DiversiIy
;+1'4 NOI NP +,0 QRS
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The diagran above shows lTV's governance sIrucIure.
DeIails oI nenbership oI Ihe ManagenenI Board can be
Iound on pages 60 and 61X
The Board has approved a Iornal Iranework Ior Ihe
approval oI expendiIure wiIhin Ihe Conpany around Ihis
governance Iranework.
O$% L5 %9 %34 F%24C 29C $%R R/ R%4S 25 2 &/2N
2"18"-),)"/ #/% #88")/,1*/,-
DeIails oI Board nenbership during 2012 is seI ouI in Ihe
Iable on page 65.
ln OcIober 2012 Ihe Board appoinIed Poger laxon as a
non-execuIive DirecIor. Poger was selecIed Iron a nunber
oI poIenIial candidaIes. The Board IelI IhaI Poger's wealIh
oI experience in Ihe adapIaIion oI nedia and righIs
nanagenenI business Io Ihe digiIal world would be an
asseI Io Ihe Board and assisI wiIh Ihe execuIion oI Ihe
TransIornaIion llan. LxecuIive search Irn, JCA Group, were
engaged Io assisI wiIh Ihe rigorous selecIion process. JCA
Group have no oIher connecIion wiIh lTV.
Mike Clasper conpleIed seven years as a non-execuIive
DirecIor in January 2013 and has been asked by Ihe Board Io
conIinue in Ihis posiIion Ior a IurIher Iwelve nonIh period.
Archie Nornan has served as Chairnan oI lTV Ior Ihree years
and Ihe Board has agreed IhaI he should serve a IurIher
Ihree year Iern as Chairnan.
As reconnended by Ihe Code, Ihere will be resoluIions Io
re-elecI each oI Ihe DirecIors aI Ihe AGM in May 2013.
Non-execuIive DirecIors are expecIed Io conniI aI leasI
18 Io 20 days per annun Io Ihe Conpany and Ihe Board is
saIisIed IhaI each oI Ihe non-execuIive DirecIors conniIs
suIIcienI Iine Io Ihe business oI Ihe Conpany. An ouIline
oI Ihe Ierns oI engagenenI Ior Ihe non-execuIive DirecIors
can be Iound on our websiIe aI www.itvp|c.comlaboutl
governance.
79)::- #/% *;8*$)*/+*
Biographical deIails, including prior experience, Ior each oI
Ihe DirecIors are seI ouI on pages 58 and 59.
There are job descripIions in place Ior each oI Ihe Chairnan,
Ihe ChieI LxecuIive, and Ihe Senior lndependenI DirecIor
which have been agreed by Ihe Board.
T34 7%8/4929:/ 5&43:&34/
F%24C
Chairnan, Iwo LxecuIive DirecIors, Ive non-execuIive DirecIors
@L5:B%534/ I%NNL&&//
LxecuIive DirecIors and oIher
senior nanagenenI
7/9/42B #34J%5/
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LxecuIive DirecIors
Y292U/N/9& F%24C
Senior execuIives oI Group IuncIions
and divisional businesses
K3CL& I%NNL&&//
Three non-execuIive DirecIors
M%NL92&L%9 I%NNL&&//
Chairnan and non-execuIive
DirecIors
./N39/42&L%9 I%NNL&&//
Chairnan and Ihree non-execuIive
DirecIors
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SIudios Board and BroadcasI Board
LxecuIive DirecIors and senior
execuIives oI divisional businesses
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The Board has delegaIed cerIain responsibiliIies Io iIs
conniIIees. The Ierns oI reIerence Ior each conniIIee
are reviewed annually and Ihe currenI versions are available
on Ihe Conpany's websiIe aI www.itvp|c.comlaboutl
governance.
Audit Committee: see Ihe AudiI ConniIIee PeporI on
page 70.
Pemuneration Committee: see Ihe PenuneraIion PeporI
on page 75.
Nomination Committee: Ihe ConniIIee is conposed oI
Ihe non-execuIive DirecIors.
The role oI Ihe NoninaIion ConniIIee is Io.
- review Ihe sIrucIure, size, and conposiIion oI Ihe Board,
including skills, knowledge and experience,
- idenIiIy and noninaIe Ior board approval candidaIes Io
Ill Board vacancies,
- consider succession planning Ior DirecIors and oIher
senior execuIives, and
- consider and review any conIicIs oI inIeresI IhaI nay be
reporIed by Ihe DirecIors.
ln addiIion Io considering naIIers under iIs Ierns oI
reIerence, Ihe ConniIIee considered candidaIes Ior a
non-execuIive DirecIor appoinInenI. The ConniIIee also
reviewed a deIailed succession planning Iranework and
underIook an annual review oI conIicIs oI inIeresI.
lull deIails oI aIIendance aI ConniIIee neeIings can be
Iound in Ihe Iable above.
Genera| Purpose Committee: Ihe ConniIIee is conposed
oI Ihe LxecuIive DirecIors. The ConniIIee neeIs as
required Io conducI Ihe Conpany's business wiIhin Ihe
clearly deIned liniIs delegaIed by Ihe Board and subjecI Io
Ihose naIIers reserved Io Ihe Board.
Disc|osure Committee: Ihe ConniIIee is conposed oI
nenbers oI Ihe senior nanagenenI Iean. The IuncIion oI
Ihe ConniIIee, in accordance wiIh Ihe Conpany's lnside
lnIornaIion lolicy, is Io ensure conpliance wiIh conIinuing
obligaIions under Ihe Disclosure and Transparency Pules and
Ihe lisIing Pules.
The Board is sIill oI Ihe view IhaI Ihe non-execuIive DirecIors are independenI in boIh characIer and judgenenI. They
consIrucIively challenge and help develop proposals on sIraIegy, scruIinise Ihe perIornance oI nanagenenI in neeIing
agreed goals and objecIives and noniIor Ihe reporIing oI perIornance.
The Board works well IogeIher bringing sIrong, independenI, balanced judgenenI, knowledge, and experience Io Ihe
Board's deliberaIions. Lach non-execuIive DirecIor has appropriaIe skills and experience IhaI Iheir views carry signiIcanI
weighI in Ihe Board's decision naking.
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Scheduled neeIings shown in black and ad hoc neeIings shown in orange.
Board
NoninaIion
ConniIIee
PenuneraIion
ConniIIee
AudiI
ConniIIee
SIaIus
DaIe oI
appoinInenI
Io Ihe Board 9 1 1 2 4 3 4 4
Mike Clasper lndependenI SlD 3 January 2006 9 1 1 2 4 3 4 4
Adan Crozier LxecuIive 26 April 2010 9 1
Poger laxon lndependenI 31 OcIober 2012 1 0 1 2
lan GriIIiIhs LxecuIive 9 SepIenber 2008 9 1
Andy lasIe lndependenI 11 AugusI 2008 9 1 1 2 4 3 4 4
lucy Neville-PolIe lndependenI 3 SepIenber 2010 9 0 1 2
Archie Nornan lndependenI Chairnan 1 January 2010 9 1 1 2 4 1
John Ornerod lndependenI 18 January 2008 9 1 1 1 4 3 4 4
NoIes.
1
Poger laxon joined Ihe Board on 31 OcIober 2012. 8 oI Ihe 9 scheduled Board neeIings were held prior Io his appoinInenI.
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The Board has esIablished a process Ior Ihe annual
evaluaIion oI Ihe perIornance oI Ihe Board, iIs conniIIees,
and individual DirecIors. The DirecIors are nade aware
on appoinInenI IhaI Iheir perIornance will be subjecI
Io an annual evaluaIion and IhaI a DirecIor would noI be
puI up Ior re-elecIion aI an AGM unless Ihe Chairnan has
decided IhaI Ihey conIinue Io perIorn eIIecIively and show
conniInenI Io Ihe role.
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The evaluaIion oI DirecIors Iocuses on processes, roles and
responsibiliIies, culIure, balance oI skills and experience,
diversiIy and how Ihe Board works IogeIher. ln parIicular,
Ihe evaluaIion Iocuses on how eIIecIive Ihe DirecIors
are in assisIing Ihe execuIive Iean in achievenenI oI Ihe
TransIornaIion llan.
ln 2012 Ihe Board engaged YSC, a global Irn oI business
psychologisIs, Io conducI a deIailed board developnenI
review. YSC conducIed a series oI inIerviews wiIh DirecIors
and senior LxecuIives, reviewed key Board papers and
aIIended several Board and ConniIIee neeIings, boIh
Iornal and inIornal. A deIailed reporI was considered aI
Ihe Board neeIing in January 2013 and IurIher work will be
underIaken over Ihe nexI Iew nonIhs Io build on Ihis work
and creaIe a Board developnenI plan.
A3::/55L%9 JB299L9U 29C CL8/45L&)
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All DirecIors are required by Ihe Conpany's ArIicles oI
AssociaIion Io be elecIed by shareholders aI Ihe IrsI AGM
Iollowing Iheir appoinInenI by Ihe Board. SubsequenIly, all
DirecIors are subjecI Io re-elecIion by shareholders aI leasI
every Ihree years. lowever, as reconnended by Ihe Code,
all DirecIors will be subniIIed Ior re-elecIion aI Ihe AGM in
2013.
The charI below shows Ihe currenI balance oI Ihe Board.
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The Board has agreed a succession planning Iranework Io
ensure IhaI.
- board Ienure is appropriaIe and encourages Iresh Ihinking
and new ideas,
- Ihe Board is suIIcienIly diverse buI nosI inporIanIly has
Ihe appropriaIe nix oI generalisI and specialisI skills, and
- non-execuIive DirecIors have Ihe appropriaIe level oI
independence, Iron Ihe execuIive and each oIher.
When planning succession wiIhin Ihe Conpany
consideraIion is given Io energency cover IogeIher wiIh
nediun and long-Iern succession. There is parIicular
enphasis on growing Ihe inIernal leadership pipeline
Ihrough Ihe launch oI Ihe Iollowing key progrannes.
- LxecuIive DevelopnenI lrogranne Ior nexI generaIion
poIenIial board successors giving Ihen an opporIuniIy Io
develop Iheir nanagenenI poIenIial and gain a greaIer
undersIanding oI Ihe business
- Developing luIure leaders lrogranne Ior delegaIes
selecIed Iron across Ihe business idenIiIed as a resulI
oI Ihe perIornance review process. ConIenI includes
undersIanding whaI iI neans Io be a leader aI lTV, how
Io nanage perIornance eIIecIively, coaching skills and
change nanagenenI
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- GraduaIe lrogranne launched in SepIenber 2012
- ApprenIice lrogranne launched in Novenber 2012
A conprehensive porIIolio oI developnenI courses and
workshops Ior all colleagues which address connon
developnenI needs is in place.
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The Board is proud oI Ihe diversiIy wiIhin lTV as a whole.
DiversiIy wiIhin Ihe organisaIion is inIegral Io achieving our
business ains. PeIecIing Ihe denographics oI our cusIoners
assisIs in undersIanding Iheir needs and ensuring IhaI our
brand, services and producIs have relevance and a wide appeal.
The Conpany's ain is Io reIecI UK denographics boIh
represenIaIionally wiIhin Ihe organisaIion and on-screen.
Year-on-year progress has been achieved in working Iowards
Ihis IargeI. Key acIiviIy in 2012 included.
- Awareness Iraining Ior line nanagers, supervisors and
progranne nakers
- SusIaining progranne porIrayal noniIoring across 80%
oI our progrannes
- losiIive acIion wriIers schene Io aIIracI and reIain
ninoriIy IalenI
- Workshops across Ihe counIry Io supporI IuIure
generaIions oI diverse IalenI Iron BAML (Black, Asian,
MinoriIy LIhnics) and individuals wiIh disabiliIies
The Conpany is a nenber oI a nunber oI naIional and
secIor speciIc equaliIy and diversiIy organisaIions. ln
addiIion, a nunber oI joinI indusIry-wide acIiviIies have
been underIaken including a senior diversiIy nenIoring
progranne and LqualiIy AcI workshop Ior independenI
progranne suppliers. The Conpany is recognised as a
posiIive enployer and holds Ihe 'Iwo-Iick' disabiliIy synbol.
The Iable below seIs ouI diversiIy daIa Ior lTV including Ihe
lTV Senior leadership Tean (SlT) which conprises Ihe Iop
140 execuIives.
SlT
2012
OIher
2012
SlT
2011
OIher
2011
Average age 45 37 44 37
Average service (years) 9.3 7.5 8.0 7.8
Male 62% 48% 64% 51%
lenale 38% 52% 36% 49%
BAML 9.71% 10.80% 8% 9%
Declared DisabiliIy 1.36% 2.42% 1% 2%
The Board recognises IhaI diversiIy in board conposiIion
is inporIanI in ensuring iIs eIIecIiveness and considers
diversiIy Io exIend beyond gender alone Io incorporaIe
execuIive and oIher experience. When considering
new appoinInenIs iI is Ihe Board's policy Io give equal
consideraIion Io Ihese IacIors.
*9C3:&L%9 29C :%9&L93L9U J4%E/55L%92B C/8/B%JN/9&
The Conpany has a policy and progranne Ior inducIion
and conIinuing proIessional developnenI oI DirecIors. On
appoinInenI, each DirecIor Iakes parI in a conprehensive
inducIion progranne where Ihey.
- receive inIornaIion abouI Ihe Group in Ihe Iorn oI
presenIaIions by execuIives Iron all parIs oI Ihe business
and on Ihe regulaIory environnenI,
- neeI represenIaIives oI Ihe Conpany's key advisers,
- receive inIornaIion abouI Ihe role oI Ihe Board and Ihe
naIIers reserved Ior iIs decision, Ihe Ierns oI reIerence
and nenbership oI board conniIIees and Ihe powers
delegaIed Io Ihose conniIIees,
- receive inIornaIion abouI Ihe Conpany's corporaIe
governance pracIices and procedures and Ihe laIesI
Inancial inIornaIion abouI Ihe Group, and
- are advised oI Iheir legal and oIher duIies and obligaIions
as a direcIor oI a lisIed conpany.
This is supplenenIed by visiIs Io key locaIions, including
sIudios and regional siIes, and neeIings wiIh key senior
execuIives and wiIh najor shareholders where appropriaIe.
The key sIages oI Ihe inducIion progranne are.
5tage one Matters covered
lrovision oI docunenIs DuIies oI a DirecIor, board
procedures, board and sIraIegy
papers and corporaIe governance
5tage two Matters covered
MeeIing wiIh CLO and Group
linance DirecIor
Business overview, currenI Irading
and key connercial issues
MeeIings wiIh non-execuIive
DirecIors
Open discussion Ioruns
MeeIings wiIh ManagenenI
Board nenbers and oIher
senior execuIives
Connercial issues and projecIs
5tage three Matters covered
SiIe visiIs UndersIanding oI Ihe business
and operaIions
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During Iheir period in oIIce, Ihe DirecIors are conIinually
updaIed on Ihe Group's businesses and Ihe conpeIiIive and
regulaIory environnenIs in which Ihey operaIe. This is done
Ihrough.
- updaIes and papers which cover changes aIIecIing Ihe
Group and Ihe narkeI in which iI operaIes,
- neeIings wiIh senior execuIives across Ihe Group and key
advisers,
- regular updaIes on changes Io Ihe legal and governance
requirenenIs oI Ihe Group and in relaIion Io Iheir own
posiIion as DirecIors, and
- presenIaIions given aI board and conniIIee neeIings
on business naIIers and Iechnical updaIe sessions Iron
exIernal advisers where appropriaIe.
As parI oI Iheir proIessional developnenI LxecuIive
DirecIors nay accepI exIernal appoinInenIs as non-
execuIive direcIors oI oIher conpanies and reIain any
relaIed Iees paid Io Ihen. DeIails oI Iees received by
LxecuIive DirecIors during 2012 can be Iound in Ihe
PenuneraIion PeporI on 84.
I%9EBL:&5 %E L9&/4/5&
The Board has delegaIed Ihe auIhorisaIion oI conIicIs Io
Ihe NoninaIion ConniIIee and has adopIed a ConIicIs oI
lnIeresI lolicy.
The Board has considered in deIail Ihe currenI exIernal
appoinInenIs oI Ihe DirecIors which nay give rise Io a
siIuaIional conIicI and has auIhorised poIenIial conIicIs
where appropriaIe.
This auIhorisaIion can be reviewed aI any Iine buI will
always be subjecI Io annual review. The Board is conIdenI
IhaI Ihese procedures operaIe eIIecIively.
*953429:/ 29C L9C/N9L&L/5
The Conpany nainIains liabiliIy insurance Ior iIs direcIors
and oIIcers which is renewed on an annual basis. The
Conpany has also enIered inIo deeds oI indenniIy wiIh
iIs direcIors. A copy oI Ihe indenniIy can be Iound on our
websiIe aI www.itvp|c.comlaboutlgovernance.
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The Board periodically reviews naIerial inIernal conIrols
including Inancial, operaIional, and conpliance conIrols and
risk nanagenenI sysIens.
.L5S N292U/N/9&
DeIails oI our ligh lnpacI low likelihood (llll) and
sIraIegic risks and our approach Io risk nanagenenI are seI
ouI on pages 48 and 49.
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The Board has conducIed a review oI Ihe eIIecIiveness oI
Ihe Group's sysIens oI inIernal conIrols Ior Ihe year ended
31 Decenber 2012. ln Ihe opinion oI Ihe Board, Ihe Conpany
has conplied wiIh Ihe inIernal conIrol requirenenIs oI Ihe
Code IhroughouI Ihe year, nainIaining an ongoing process
Ior idenIiIying, evaluaIing, and nininising risk. lurIher
inIornaIion is seI ouI in Ihe AudiI ConniIIee PeporI on
page 73.
7%L9U I%9:/49
The going concern sIaIenenI is seI ouI on page 102.
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The Board aIIaches a high prioriIy Io eIIecIive
connunicaIion wiIh shareholders and has regular and
open dialogue wiIh our insIiIuIional invesIors. The Board
believes IhaI conIinued engagenenI wiIh our shareholders
is beneIcial Io boIh lTV and iIs sIakeholders as iI helps
Io build a greaIer undersIanding oI invesIors' views,
opinions and concerns. Adan Crozier, lan GriIIIhs and
our invesIor relaIions Iean neeI wiIh nany insIiIuIional
invesIors IhroughouI Ihe year Io keep Ihen updaIed on
Ihe Conpany's perIornance and Ihe TransIornaIion
llan. These range Iron one-Io-one neeIings Io group
presenIaIions including Ihe lull year and lnIerin resulIs and
Ihe AGM. SpeciIcally, Iollowing Ihe lull year and lnIerin
resulIs one-Io-one neeIings are held wiIh our largesI
insIiIuIional invesIors.
The Chairnan responds Io shareholder queries and holds
neeIings where appropriaIe.
The Conpany nainIains a progranne oI engagenenI
wiIh Ihe invesInenI connuniIy, including Ihe resulIs
presenIaIions, brieIngs Io brokers and oIher sales Iorces
and aIIendance aI a nunber oI invesIor conIerences.
lresenIaIions given Io Ihe invesInenI connuniIy are
available Io download Iron our websiIe aI www.itvp|c.coml
investors.
We regularly seek Ieedback on Ihe percepIion oI Ihe
Conpany anongsI shareholders and Ihe invesIor
connuniIy nore broadly via our corporaIe brokers. lnvesIor
connenIs are Ied back Io Ihe Board and iIs conniIIees
regularly.
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The Conpany considers annually wheIher iI is appropriaIe Io
connission an invesIor audiI. No audiI was underIaken
in 2012.
lrivaIe shareholders represenI nore Ihan 95% oI our
shareholders holding 3.29% oI our shares. We encourage
shareholders Io regisIer Iheir enail addresses Io receive
inIornaIion Iron us in a Iinely nanner.
K9932B 7/9/42B Y//&L9U [K7Y\
The AGM Ior 2013 will be held on 15 May 2013 (IurIher
deIails can be Iound on page 90). The NoIice oI MeeIing
seIs ouI Ihe resoluIions being proposed. The NoIice,
IogeIher wiIh any relaIed docunenIs, is nade available
Io shareholders aI www.itvp|c.comlinvestorslannua|-
genera|-meeting, or is nailed Io Ihen, iI Ihey have elecIed
Io receive hard copies, aI leasI 20 working days beIore Ihe
neeIing. lasI year all resoluIions were passed wiIh voIes
ranging Iron 90.03% Io 100%.
The neeIing is nornally aIIended by approxinaIely
200 shareholders. Shareholders are inviIed Io neeI Ihe
DirecIors prior Io and aIIer Ihe Iornal proceedings. AI Ihe
neeIing Ihe Chairnan and ChieI LxecuIive will review Ihe
Group's currenI Irading which is Iollowed by a quesIion and
answer session. SeparaIe resoluIions are proposed on each
subsIanIially separaIe issue and all resoluIions are Iaken on
a poll. The level oI voIes lodged on each resoluIion is nade
available on a regulaIory inIornaIion service and on Ihe
Conpany's websiIe aI www.itvp|c.com as soon as possible
aIIer Ihe neeIing.
Shareholders who are noI able Io aIIend Ihe neeIing can
voIe online in advance aI www.itvp|c.com or by conpleIing
and reIurning a Iorn oI proxy.
Save in excepIional circunsIances, all nenbers oI Ihe Board
will aIIend Ihe AGM.
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On Ihe Iollowing pages we seI ouI Ihe AudiI ConniIIee's
PeporI Ior 2012. The reporI conprises Iour secIions.
- low Ihe ConniIIee works
- WhaI we Iocused on in 2012
- lnIernal conIrols
- Our audiIors
Our principal ains have been Io ensure Ihe inIegriIy oI Ihe
Inancial inIornaIion provided Io our sIakeholders and
Io assisI Ihe Board Io noniIor and evaluaIe Ihe inIernal
conIrol environnenI. SIrong and eIIecIive risk nanagenenI
and conIrol procedures underpin our abiliIy Io execuIe our
TransIornaIion llan and inplenenI our sIraIegy.
ln 2012, Ihe ConniIIee has soughI Io widen iIs Iocus Io
include new and energing risk areas such as nergers and
acquisiIions and Ihe inplenenIaIion oI new Iechnologies,
which will underpin IuIure perIornance.
There is considerable debaIe around Ihe role oI audiI
conniIIees which we welcone, Iollow wiIh inIeresI and in
which we parIicipaIe where relevanI. We conIinue Io seek
Io inprove our reporI on Ihe acIiviIy oI Ihis ConniIIee
Io give shareholders a clearer picIure oI Ihe key issues we
consider and how we discharge our responsibiliIies. We are
open Io Ieedback and dialogue wiIh shareholders on audiI
conniIIee Iopics.
The lPC released iIs Guidance Ior AudiI ConniIIees in
SepIenber 2012 which is designed Io provide guidance
Io conpany boards in naking suiIable arrangenenIs Ior
audiI conniIIees. We have reviewed Ihis guidance and are
supporIive oI iIs ains Io enhance disclosure and increase
invesIor conIdence in Ihe audiI process and inIegriIy oI
conpany accounIs.
Who is on the Committee
The ConniIIee is conposed enIirely oI non-execuIive
DirecIors. The currenI nenbers are.
- John Ornerod (Chairnan)
- Mike Clasper
- Andy lasIe
lull deIails oI aIIendance aI ConniIIee neeIings can
be Iound in Ihe Iable on page 65.
ConsisIenI wiIh Ihese ains, in 2012 Ihe ConniIIee
conducIed a Iender Ior audiI services. We conpared Ihe
qualiIy and eIIecIiveness oI audiI services oIIered and
exanined Ihe qualiIcaIions, independence and experIise
oI Ihe Irns under consideraIion. The Iender process
is described on page 72. WhilsI we do noI propose Io
change Irn, Ihe Iender has been a valuable exercise. lI
has generaIed changes in Ihe audiI approach IhaI reIecI
Ihe changes in our business linked nore expliciIly Io Ihe
TransIornaIion llan and changing nedia landscape. Those
changes include greaIer depIh in inIernaIional coverage
and increased use oI Iechnology and any early Iocus on new
revenue sIreans. These changes are all designed Io supporI
a robusI audiI and provide clear relevanI Ieedback Io Ihe
ConniIIee.
]%$9 T4N/4%C
Chairnan, AudiI ConniIIee
27 lebruary 2013
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The ConniIIee nenbers have a wide range oI business
and Inancial experience beIween Ihen which enables
Ihe ConniIIee Io IulIl iIs Ierns oI reIerence in a robusI
and independenI nanner. The ConniIIee considers IhaI
John Ornerod has recenI and relevanI Inancial experience
Ior Ihe purposes oI Ihe Code. Biographical deIails oI Ihe
nenbers oI Ihe ConniIIee, including Iheir qualiIcaIions
and experience, are seI ouI on pages 58 and 59.
Menbers oI Ihe ManagenenI Board and oIher senior
nanagenenI regularly aIIend neeIings aI Ihe inviIaIion
oI Ihe Chairnan oI Ihe ConniIIee IogeIher wiIh Ihe lead
oI lnIernal AudiI (DeloiIIe) and Ihe exIernal audiIor (KlMG).
The ConniIIee as a whole neeIs privaIely wiIh Ihe inIernal
and exIernal audiIors prior Io neeIings on a regular basis.
ln addiIion, IhroughouI Ihe year Ihe Chairnan oI Ihe
ConniIIee neeIs inIornally and has open lines oI
connunicaIion wiIh Ihe Group linance DirecIor, lead oI
lnIernal AudiI and Ihe senior engagenenI Iean Iron Ihe
exIernal audiIors. This group generally neeIs ahead oI each
Iull AudiI ConniIIee neeIing Io prepare and idenIiIy key
areas Ior consideraIion by Ihe ConniIIee.
The ConniIIee works Io a sIrucIured progranne oI
acIiviIies wiIh agenda iIens Iocused Io coincide wiIh key
evenIs oI Ihe annual Inancial reporIing cycle, IogeIher wiIh
sIanding iIens IhaI Ihe ConniIIee is required Io consider
regularly under iIs Ierns oI reIerence. The agenda changes
Io respond Io key issues and plans in lTV and Ihe resulIs oI
Ihe ConniIIee's work are reporIed Io Ihe Board.
The ConniIIee works principally Iron a risk based agenda
by reviewing presenIaIions and reporIs Iron nanagenenI,
inIernal audiI and exIernal audiI. The ConniIIee raises
quesIions and, where appropriaIe, challenges inIornaIion in
Ihese reporIs and connunicaIes iIs views Io Ihe Board. The
ConniIIee nenbers also neeI inIornally wiIh nenbers oI
Ihe nanagenenI Iean.
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The role oI Ihe ConniIIee includes Io.
- noniIor Ihe inIegriIy oI Ihe published Inancial
inIornaIion oI Ihe Conpany,
- review and reporI Io Ihe Board on Ihe signiIcanI Inancial
reporIing issues and judgenenIs nade in connecIion wiIh
Ihe preparaIion oI Ihe Conpany's Inancial sIaIenenIs
(having regard Io naIIers connunicaIed by Ihe audiIor),
inIerin reporIs, prelininary announcenenIs and relaIed
Iornal sIaIenenIs,
- review Ihe eIIecIiveness oI Ihe inIernal conIrol and risk
nanagenenI sysIens,
- review Ihe arrangenenIs Ior enployees Io raise concerns,
in conIdence, abouI possible wrongdoing in Inancial
reporIing or oIher naIIers,
- noniIor and review Ihe eIIecIiveness oI Ihe inIernal audiI
IuncIion,
- review Ihe qualiIy and eIIecIiveness oI Ihe exIernal audiI
and Ihe procedures and conIrols designed Io ensure
audiIor independence, and
- consider and nake reconnendaIions Io Ihe Board
in relaIion Io Ihe appoinInenI, reappoinInenI,
replacenenI, and renuneraIion oI Ihe Conpany's
exIernal audiIor.
The ConniIIees Ierns oI reIerence can be accessed on Ihe
Conpany's websiIe aI www.itvp|c.comlaboutlgovernance.
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The ConniIIee receives deIailed reporIs on all key
judgenenIs and conIinues Io challenge audiIor
independence and Iees.
Sone oI Ihe key issues we considered during Ihe year include.
- Financia| reporting: Ihe ConniIIee reviewed Ihe
Inancial inIornaIion published by Ihe Conpany, including
Ihe annual Inancial sIaIenenIs and inIerin Inancial
reporI. To assisI iIs review Ihe ConniIIee received
reporIs Iron nanagenenI and Iron Ihe audiIors on
conpliance wiIh accounIing sIandards, key judgenenIs in
preparaIion oI Ihe Inancial sIaIenenIs and conpliance
oI Ihose sIaIenenIs wiIh besI pracIice and laid down
disclosure sIandards.
ln considering reporIs on 2012 Ihe ConniIIee has
considered judgenenIs applied in esIablishing provisions
Ior IaxaIion and pension obligaIions and accounIing Ior
nulIi-year broadcasIing righIs. JudgenenIs associaIed
wiIh inpairnenI and Ihe applicaIion oI Ihe going concern
basis were also considered. The signiIcance oI Ihese
judgenenIs has signiIcanIly dininished over recenI years
as Ihe Conpany's operaIing and Inancial perIornance
has sIrengIhened.
- Pisk management: Ihe ConniIIee conIinued Io
consider Ihe process Ior nanaging risk wiIhin Ihe
business. Pisk nanagenenI procedures inIroduced in
2011 were reviewed and Ihe ConniIIee noIed IhaI
Ihese procedures are now increasingly enbedded in Ihe
nanagenenI process. lurIher work Io increase Iheir
eIIecIiveness will be underIaken in 2013 and will be
reviewed by Ihe ConniIIee.
- Techno|ogy governance: as parI oI Ihe TransIornaIion
llan Ihe Conpany has underIaken and conIinues
Io underIake radical changes Io iIs Iechnology
inIrasIrucIure. The ConniIIee has Iocused on reviewing
and advising on Ihe governance sIrucIures Ior various
sysIens and processes.
- Audit tender: as KlMG had been Ihe Conpany's audiIor
since 2004, Ihe ConniIIee IelI IhaI iI was appropriaIe
and in keeping wiIh good governance Io conducI a
Iender Ior audiI services. ln response Io our sIaIenenI
oI inIenIion in lasI years' reporI Ihree Irns were shorI-
lisIed, each wiIh sIrengIhs and capabiliIies relevanI Io
lTV. AIIer careIul and Ihorough evaluaIion oI whaI each
Irn had Io oIIer, Ihe ConniIIee concluded IhaI KlMG's
approach and deIailed knowledge oI our business nade
Ihen Ihe besI Irn Io serve lTV. AlIhough we do noI
propose Io change audiIor, Ihe Iender was a valuable
process as iI generaIed posiIive change in Ihe audiI
approach.
- Mergers and acquisitions process: Ihe ConniIIee
reviewed Ihe nergers and acquisiIions guidelines
including due diligence and approvals. The guidelines are
in place Io ensure IhaI opporIuniIies are balanced wiIh
appropriaIe consideraIion oI risk and IhaI IransacIions
are aligned wiIh sIraIegy. PecenI naIerial acquisiIion
opporIuniIies have been considered againsI Ihese
guidelines.
- Bribery and Fraud: Ihe ConniIIee noniIored Ihe
sysIens and conIrols in place Ior Ihe prevenIion oI
bribery and Iraud.
- Whist|eb|owing: Ihe ConniIIee oversaw updaIes Io
lTV's whisIleblowing policy and procedures.
The ConniIIee also conducIed iIs annual review oI Ihe
Group insurance progranne and Ireasury policies.
K9932B ./8L/R
An annual review oI our perIornance was conducIed as
parI oI Ihe annual board evaluaIion process. ln addiIion
Io Ieedback Iron nenbers oI Ihe ConniIIee, inpuI was
soughI Iron Ihe Group linance DirecIor, KlMG, DeloiIIe and
Ihe Chairnan oI Ihe Board.
Overall, Ihe review concluded IhaI Ihe ConniIIee is
responding appropriaIely Io iIs Ierns oI reIerence. The
ConniIIee will conIinue Io shiII iIs Iocus Io consider
conIrols in new and developing areas such as inIernaIional
operaIions, Ihe inpacI oI newly acquired businesses, pay
Ielevision and progranne proIIabiliIy.
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The Board has overall responsibiliIy Ior Ihe Group's
sysIens oI inIernal conIrol and Ior regularly reviewing Ihe
eIIecIiveness oI Ihose sysIens. The ConniIIee assisIs Ihe
Board in reviewing Ihe Group's sysIens oI inIernal conIrol.
The prinary responsibiliIy Ior Ihe operaIion oI Ihese
sysIens is delegaIed Io nanagenenI. Such sysIens can
only provide reasonable and noI absoluIe assurance againsI
naIerial nissIaIenenI or loss. Key conIrol procedures are
designed Io nanage raIher Ihan elininaIe risk and can be
sunnarised as Iollows.
- 5trategy and nancia| reporting: Ihe sIraIegy is
reviewed and approved by Ihe Board. The Group perIorns
a conprehensive annual sIraIegy review and Ive-year
Inancial planning exercise. The Ive-year plan Ieeds
inIo Ihe annual budgeI cycle. The LxecuIive DirecIors
review Iornal IorecasIs, deIailed budgeIs, sIraIegies and
acIion plans and Ihe Board approves Ihe overall Group
budgeI as parI oI iIs nornal responsibiliIies. The resulIs oI
operaIing uniIs are reporIed nonIhly, wiIh acIual resulIs
conpared Io budgeI and IorecasIs and key Irends and
variances explained and analysed.
- Crganisationa| structure and authorisation procedures:
Ihe Group has an esIablished organisaIional sIrucIure
wiIh clearly sIaIed lines oI responsibiliIy, approval levels
and delegaIed auIhoriIies.
- Pisk assessment and management: nanagenenI is
responsible Ior idenIiIying Ihe risks Iacing Ihe business
and Ior esIablishing conIrols and procedures Io noniIor
and niIigaIe Ihose risks.

The Board is responsible Ior esIablishing a robusI risk
nanagenenI process and Ior regularly reviewing Ihe
idenIiIed risks. The ConniIIee keeps Ihe eIIecIiveness
oI Ihe process under regular review. DeIails oI Ihe
Conpany's key risks can be Iound on pages 48 and 49.
- Contro| environment: Inancial conIrols, policies, and
procedures are considered as parI oI Ihe Group's ongoing
risk assessnenI process. These conIrols are reviewed
Io ensure risks are idenIiIed and Ihe processes and
procedures are in accordance wiIh and aligned Io Ihe
sIraIegy. The inIernal audiI Iean provides objecIive
assurance as Io Ihe eIIecIiveness oI Ihe Group's sysIens
oI inIernal conIrol and risk nanagenenI, reporIing Io
boIh Ihe ManagenenI Board and Ihe ConniIIee.
- Peviewing and monitoring the effectiveness of
interna| contro|s: conIrols are noniIored by senior
nanagenenI, inIernal audiI and Ihe ConniIIee.
Penedial plans are puI in place where conIrols are weak
or Ihere are opporIuniIies Ior inprovenenI. Serious
conIrol weaknesses (iI any) are reporIed Io Ihe Board and
acIions Iaken as appropriaIe.
T34 23CL&%45
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The Group's inIernal audiI acIiviIy is ouIsourced Io DeloiIIe
who reporI direcIly Io Ihe ConniIIee. The ConniIIee keeps
under review Ihe inIernal audiI relaIionship wiIh DeloiIIe
and Ihe procedures Io ensure appropriaIe independence oI
Ihe inIernal audiI IuncIion is nainIained. ln parIicular, Ihe
ConniIIee has approved guidelines in relaIion Io oIher
advisory and consulIancy work IhaI DeloiIIe nay underIake
Ior Ihe Conpany (IurIher inIornaIion is provided in Ihe
PenuneraIion PeporI on page 76). An evaluaIion exercise is
underIaken annually Io review perIornance.
During Ihe year Ihe ConniIIee considered and approved
Ihe inIernal audiI plan and reviewed inIernal audiI reporIs,
Ihe acIions Iaken Io inplenenI Ihe reconnendaIions
nade in Ihe reporIs and Ihe sIaIus oI progress againsI
previously agreed acIions. The plan is developed on a risk
basis driven by overall assurance naps.
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The ConniIIee regularly noniIors Ihe oIher services
being provided Io Ihe Group by iIs exIernal audiIor, and has
developed a Iornal policy Io ensure Ihis does noI inpair
Iheir independence or objecIiviIy. The policy is based on
Ihe Ive key principles which underpin Ihe provision oI oIher
services by Ihe exIernal audiIor. These are IhaI Ihe audiIor
nay noI provide a service which.
- places Ihen in a posiIion Io audiI Iheir own work,
- creaIes a nuIualiIy oI inIeresI,
- resulIs in Ihe audiIor developing close personal
relaIionships wiIh lTV enployees,
- resulIs in Ihe audiIor IuncIioning as a nanager or
enployee oI lTV, or
- puIs Ihe audiIor in Ihe role oI advocaIe Ior lTV.
The policy is reviewed annually and is available in Iull on Ihe
Conpany's websiIe aI www.itvp|c.comlaboutlgovernance.
OIher Ihan in excepIional circunsIances nanagenenI and
Ihe ConniIIee do noI expecI non-audiI Iees Io be in excess
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oI Iees Ior audiI and audiI relaIed services and generally
less. The non-audiI Iees Ior 2012 were halI IhaI oI Ihe audiI
Iees. A reporI on Ihe level oI non-audiI work provided by Ihe
audiIor is given Io Ihe ConniIIee halI yearly.
DeIails oI Ihe relaIed audiI and oIher services are seI ouI in
secIion 2 on page 109. The signiIcanI engagenenIs relaIe
Io VAT and corporaIe Iax services, including Iax resIrucIuring
advice. SigniIcanI engagenenIs require Ihe prior approval
oI Ihe Chairnan oI Ihe AudiI ConniIIee.
The senior audiI parIner serves no nore Ihan Ive years
conIinuously and Ihe independenI review parIner serves
no nore Ihan seven years conIinuously. OIher key parIners
serve no longer Ihan seven consecuIive years. The
ConniIIee noniIors Ihe Ienure oI parIners and senior sIaII
as well as Iorner enployees working Ior Ihe Conpany. The
appoinInenI by Ihe Conpany oI Iorner senior enployees
oI Ihe exIernal audiIor would require approval oI Ihe
ConniIIee.
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During Ihe year Ihe ConniIIee considered Ihe perIornance
and audiI Iees oI Ihe exIernal audiIor, and Ihe level oI non-
audiI work underIaken, and reconnended Io Ihe Board
IhaI a resoluIion Ior Ihe reappoinInenI oI KlMG AudiI llc
Ior a IurIher year as Ihe Conpany's audiIor be proposed Io
shareholders aI Ihe AGM in May 2012. The resoluIion was
passed and KlMG AudiI llc was reappoinIed Ior a IurIher
year.
lollowing Ihe audiI Iender, Ihe ConniIIee has
reconnended Ihe reappoinInenI oI KlMG AudiI llc aI Ihe
AGM in May 2013.
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The ConniIIee perIorns a speciIc evaluaIion oI Ihe
perIornance oI Ihe exIernal audiIor annually, Ihrough
assessnenI oI Ihe resulIs oI quesIionnaires conpleIed by
Ihe execuIive DirecIors and relevanI senior nanagenenI
in addiIion Io conniIIee nenbers' own views oI audiIor
perIornance. The ConniIIee also reviews and discusses
wiIh Ihe audiIors Ihe reporIs on KlMG and oIher najor
Irns issued by Ihe AudiI lnspecIion UniI.
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The AudiI ConniIIee PeporI was approved by Ihe Board on
27 lebruary 2013 and signed on iIs behalI by John Ornerod.
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On Ihe Iollowing pages we seI ouI Ihe PenuneraIion PeporI
Ior 2012.
ln order Io achieve Ihe IransIornaIion oI lTV inIo a lean,
creaIively dynanic and II-Ior-purpose organisaIion, iI is
essenIial IhaI LxecuIive DirecIors, Ihe ManagenenI Board
and oIher senior LxecuIives (IogeIher Ihe Senior LxecuIive
Group) conIinue Io work IogeIher as an eIIecIive Iean
Iocused on delivering nediun-Iern shareholder value.
As you will see Iron Ihe annual reporI Ihe TransIornaIion
llan is working and conIinues Io drive Ihose changes
needed Io deliver susIainable growIh in shareholder value
over Ihe nediun Iern.
We believe IhaI Ihe currenI incenIive arrangenenIs
conIinue Io supporI Ihe TransIornaIion llan by placing an
enphasis on Ihe delivery oI sIraIegic change, co-operaIive
endeavour and Ihree Io Ive-year ouIcones aligned Io
shareholder value.
The ConniIIee would encourage shareholders Io noIe Ihe
Iollowing.
- we have again inplenenIed only nodesI salary increases
in line wiIh Ihose given Io Ihe wider organisaIion,
- 2012 has been anoIher successIul year Ior lTV and Ihis
has been considered when reviewing perIornance and
deIernining renuneraIion. A signiIcanI proporIion oI Ihe
Senior LxecuIive Group's renuneraIion is dependenI on
Ihe achievenenI oI sIreIching perIornance condiIions,
- beneIIs awarded Io Ihe Senior LxecuIive Group are
delivered wiIhin Ihe sane Iranework as Ior oIher lTV
colleagues,
- Ihe conpulsory deIerral period Ior parI oI Ihe annual
bonus conIinues Io be Ihree years and Ihe Senior
LxecuIive Group is encouraged Io hold long-Iern
personal invesInenI in lTV Io creaIe alignnenI wiIh Ihe
shareholder experience,
- Ihe ConniIIee has spenI sone Iine esIablishing a
reward policy Ior criIical IalenI Io ensure creaIive renewal
and IhaI we can conIinue Io aIIracI and reIain Ihe besI
people,
- Ihe ConniIIee has been acIively involved in Ihe BlS
consulIaIion process on execuIive renuneraIion
and supporIs Ihe principles ouIlined by BlS. We have
considered Ihe requirenenIs which will be eIIecIive
Ior Ihe 2013 reporI and have included sone oI Ihe new
requirenenIs early in Ihis reporI where appropriaIe, and
- we will be asking shareholders Io supporI Ihe Iechnical
renewal oI our share plans aI Ihe AGM in May as Ihey are
coning Io Ihe end oI Iheir Ien year liIe.
K9C) Q25&/
Chairnan, PenuneraIion ConniIIee
27 lebruary 2013
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Who is on the Committee
The ConniIIee is conposed enIirely oI Non-execuIive
DirecIors. The currenI nenbers are.
- Andy lasIe (Chairnan)
- Mike Clasper
- Archie Nornan
- John Ornerod
lull deIails oI aIIendance aI ConniIIee neeIings can
be Iound in Ihe Iable on page 65.
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The reporI is presenIed in Ive secIions.
- low Ihe ConniIIee works
- PenuneraIion policy
- Delivering renuneraIion policy
- Non-execuIive DirecIors
- DeIailed audiIed disclosures
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The ConniIIee obIains advice Iron various sources in order
Io ensure iI nakes inIorned decisions. The ConniIIee's
nain advisers are seI ouI below. Adan Crozier, ChieI
LxecuIive, is inviIed Io aIIend conniIIee neeIings as
appropriaIe. No individual is involved in decisions relaIing Io
Iheir own renuneraIion.
Adviser Area oI advice
Andy Doyle,
Group lP DirecIor
Main inIernal adviser, provides updaIes
on renuneraIion, enployee relaIions
and hunan resource issues.
DeloiIIe lll* lndependenI advisers on renuneraIion
policy and Ihe exIernal renuneraIion
environnenI.
* DeloiIIe are signaIories Io Ihe Code oI ConducI in relaIion Io LxecuIive PenuneraIion
ConsulIing in Ihe UK. During Ihe year DeloiIIe also provided Ihe Group wiIh advice on
Iax and corporaIe Inance, and acIed on a consulIancy basis Io provide inIernal audiI
supporI under separaIe engagenenI Ierns.
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The role oI Ihe ConniIIee is prinarily Io.
- review Ihe ongoing appropriaIeness, relevance and
eIIecIiveness oI Ihe Group renuneraIion policy including
in relaIion Io reIenIion and developnenI,
- approve Ihe renuneraIion policy and sIraIegy Ior Ihe
Senior LxecuIive Group,
- approve Ihe design oI Ihe Conpany's annual bonus
arrangenenIs and long-Iern incenIive plans (lTlls),
including Ihe perIornance IargeIs IhaI apply Ior Ihe
Senior LxecuIive Group, and
- deIernine individual award levels Ior Ihe Senior LxecuIive
Group based on perIornance againsI annual bonus
IargeIs and long-Iern incenIive perIornance condiIions.
The ConniIIee iniIiaIes dialogue wiIh shareholders where
developnenIs or changes are proposed and welcones
Ieedback aI oIher Iines.
O$2& R/ CLC L9 ?=>?
During 2012 our work was broadly in Iour areas.
A/&&L9U &24U/&5
- Ihe business and personal perIornance IargeIs Ior 2012
annual bonuses aligned wiIh Ihe business plan Ior Ihe
year and Ihe TransIornaIion llan,
- Ihe perIornance IargeIs IhaI would apply Io Ihe
lerIornance Share llan (lSl) awards nade in 2012, and
- a prelininary review oI 2013 execuIive conpensaIion and
bonus IargeIs.
./8L/RL9U %3&:%N/5
- Ihe annual bonus ouIcones and deIerred annual bonus
awards Ior 2011 and indicaIive 2012 ouIcones ahead oI
Inal approval in 2013, and
- approval oI Ihe perIornance payouI oI Ihe lTV
Turnaround llan, and Ihe 2009 awards under Ihe lTV
lerIornance Share llan.
./R24C E42N/R%4S
- base salaries Ior Ihe Senior LxecuIive Group wiIh eIIecI
Iron 1 January 2012 using Ihe sane process as applied Io
Ihe wider enployee group,
- renuneraIion packages Ior new appoinInenIs Io Ihe
Senior LxecuIive Group,
- developnenI oI a reward policy Ior criIical IalenI Io
ensure IhaI lTV can conIinue Io recruiI in an increasingly
conpeIiIive narkeI Io supporI Ihe TransIornaIion llan
whilsI conIrolling cosIs,
- Ihe Iranework oI incenIive awards Ior overseas
execuIives,
- Ihe conpensaIion Iranework Ior Ihe wider enployee group,
and
- reviewing Ihe perIornance nanagenenI Iranework and
pay pracIices across Ihe Group.
7%8/4929:/
- Ihe BlS proposals on execuIive pay and how Ihese would
be inIegraIed inIo IuIure renuneraIion sIraIegy,
- Ihe PenuneraIion PeporI Ior 2011, prior Io iIs approval
by Ihe Board, and approval by shareholders aI Ihe Annual
General MeeIing in May 2012, and
- Ihe process Ior Ihe renewal oI share schene rules and
relaIed shareholder consulIaIion.
The ConniIIee reporIs regularly Io Ihe Board on iIs work.
E*1</*$#,)"/ E*8"$, +"/,)/<*%
!!"#$%"& ##(#!(!"#! )*++, -.+
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K9932B ./8L/R
The ConniIIee's perIornance was reviewed as parI oI Ihe
Board evaluaIion process explained on page 66.
./N39/42&L%9 J%BL:)
The Conpany operaIes in Ihe parIicularly conpeIiIive nedia
narkeI. lTV ains Io balance Ihe need Io aIIracI and reIain
Ihe high qualiIy IalenI essenIial Io Ihe Conpany's success
wiIh Ihe need Io be cosI-eIIecIive and Io reward excepIional
perIornance. The ConniIIee has developed a renuneraIion
policy Ior Ihe Conpany which balances Ihese IacIors, while
Iaking inIo accounI prevailing besI pracIice and invesIor
expecIaIions.
A signiIcanI proporIion oI Ihe renuneraIion package is Iied
Io Ihe achievenenI oI sIreIching perIornance condiIions
which align renuneraIion wiIh our sIraIegy Io creaIe
shareholder value and deliver Ihe TransIornaIion llan.
The renuneraIion package is Iocused on rewarding
susIained long-Iern perIornance and aligning execuIives
wiIh Ihe shareholder experience.
lndividuals should be rewarded Ior success and perIornance
neasured over clear Iinescales. LxecuIives are encouraged
Io Iake acIion in line wiIh Ihe TransIornaIion llan, using
good business nanagenenI principles and appropriaIe risk
nanagenenI.
When developing renuneraIion policy, Ihe ConniIIee
obIains advice Iron Ihe key advisers ouIlined on page 76.
All colleagues parIicipaIe in a bonus schene and all UK
colleagues are inviIed Io join Ihe SAYL schene.
When deIernining renuneraIion Ior Ihe Senior LxecuIive
Group and all enployees oI lTV, Ihe ConniIIee also
considers any relevanI governance and social issues.
Key IeaIures oI Ihe renuneraIion policy are seI ouI in Ihe
Iable below.
H/) E/2&34/5 %E 4/N39/42&L%9 J%BL:)
FIXED
ELEMENT5
Purpose and
|ink to strategy Cperation Performance Metrics
Changes to
po|icy in
the year
Base 5a|ary
PeIlecI Ihe
individual's skills
and experience.
PeIlecI inIended
role and
responsibiliIies.
SeI conpeIiIively wiIh reIerence Io Ihe narkeI nedian
recognising Ihe need Ior an appropriaIe preniun Io aIIracI
and reIain superior IalenI.
leriodic reviews oI narkeI posiIioning.
Peviewed in Ihe conIexI oI Ihe wider enployee pay review.
laid nonIhly in cash.
Peviewed annually in January Iaking accounI oI personal
and Conpany-wide perIornance.
Any increase based on
individual perIornance,
change in role and Conpany
pay award.
DirecIors'
salaries
increased
by 2.5% in
January 2012
in line wiIh
Ihe average
increase given
across Ihe
Conpany.
Pension
lrovide a
Iranework Io save
Ior reIirenenI.
Peward susIained
conIribuIion.
lrovide narkeI conpeIiIive package.
All new colleagues, including nenbers oI Ihe Senior
LxecuIive Group, are oIIered nenbership oI a deIined
conIribuIion schene which is benchnarked periodically.
The najoriIy oI Ihe Senior LxecuIive Group are eiIher
nenbers oI Ihe lTV deIined conIribuIion schene or receive
a cash paynenI equivalenI Io Ihe enployer conIribuIion.
None None
Benefits lrovide Iinancial
proIecIion Ior
enployees and
Iheir Ianilies.
lrovide narkeI conpeIiIive beneIiIs including car
allowance, privaIe nedical insurance and oIher insurance
beneIiIs.
None None
!!"#$%"& ##(#!(!"#! )*++, -.+
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6;
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/-)0"1!1,0
E*1</*$#,)"/ E*8"$, +"/,)/<*%
VAPIABLE
ELEMENT5
Purpose and
|ink to strategy Cperation Cpportunity Performance Metrics
Changes to
po|icy in
the year
Annua|
Bonus
5cheme
(Bonus) and
Deferred
5hare Award
P|an (D5A)
lncenIivise
execuIives and
colleagues Io
achieve key
ouIcones on an
annual basis.
locus on key
Iinancial neIrics
and TransIornaIion
llan objecIives.
DeIerred elenenI
encourages long-
Iern shareholding
and alignnenI
wiIh shareholder
experience.
Maxinun awards seI broadly in line wiIh
lTSL 100 narkeI pracIice.
All colleagues parIicipaIe in a bonus,
Ihough levels vary according Io role and
senioriIy.
laid in March each year Iollowing Ihe year
end, once Ihe resulIs have been audiIed.
Awards nay be subjecI Io IorIeiIure in
cerIain circunsIances.
TargeI Bonus
opporIuniIies
are generally
60% oI Ihe
naxinun
award.
lerIornance IargeIs
are based on corporaIe
objecIives closely linked Io
Ihe sIraIegic prioriIies and
individual conIribuIion Io Ihe
TransIornaIion llan.
lor Ihe Senior LxecuIive
Group Ihe Bonus is paid.
- One-Ihird in cash.
- One-Ihird is conpulsorily
deIerred inIo shares
under Ihe DSA, which are
released aIIer Ihree years.
- Up Io one-Ihird can be
volunIarily deIerred inIo
shares under Ihe DSA
and released aIIer Ihree
years. This is naIched by
an addiIional award under
Ihe lSl on a 1.1 basis
subjecI Io perIornance
condiIions, wiIh Ihe
balance in cash.
None
Performance
5hare
P|an (P5P)
lncenIivise key
individuals over
Ihe longer Iern
aligned Io sIraIegy
and creaIion oI
shareholder value.
PeIain key
individuals.
Awards nade annually.
Awards nay be subjecI Io IorIeiIure in
cerIain circunsIances.
AggregaIe
lSl awards,
conbining
core and
naIching
elenenIs, do
noI exceed
150% oI base
salary.
lerIornance is neasured
againsI corporaIe IargeIs
closely linked Io Ihe
Conpany's Iinancial and
sIraIegic prioriIies as Iollows.
- 50% cunulaIive adjusIed
LlS
- 25% lanily SOV
- 25% non-NAP growIh
A GaIeway condiIion nusI be
achieved beIore any porIion
oI Ihe award vesIs.
None
Pecruitment
Awards
To aIIracI Ihe besI
candidaIe Ior Ihe
job.
To ensure IhaI Ihe besI candidaIe is
conpensaIed Ior any loss oI incenIives
earned buI noI paid by a previous enployer
due Io Ihe individual Iaking up a role
wiIh lTV.
Lach siIuaIion is considered on neriI, buI
awards do noI exceed Ihose IhaI would
have been paid by a previous enployer.
n/a None None
Termination
payments
To ensure no
reward received Ior
Iailure.
The Conpany reIains Ihe righI Io IerninaIe
enploynenI by naking paynenI in lieu oI
noIice.
SIeps are Iaken Io prevenI rewards Ior
Iailure and IerninaIion paynenIs Io
DirecIors will only reIecI conIracIual
obligaIions.
n/a n/a None
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F2B29:/ %E 4/N39/42&L%9
The balance beIween Ihe Ixed and variable elenenIs
oI Ihe IoIal renuneraIion package is dependenI on Ihe
perIornance ouIcones achieved. The charIs below show
Ihe renuneraIion ouIcone Ior each oI Ihe LxecuIive
DirecIors Ior below Ihreshold, IargeI and naxinun
perIornance levels. There is no bonus or lTl paynenI Ior
below Ihreshold perIornance.
8
!""#
$$# %&#
$'#
$(#
!'#
%$#
0
2,000,000
4,000,000
3,000,000
1,000,000
Adan Crozier
lixed pay
Annual bonus
lTls
!""# $(# '%#
$"#
$$#
!'#
%$#
lan GriIIIhs
B
e
l
o
w
T
h
r
e
s
h
o
l
d
T
a
r
g
e
I
M
a
x
i
n
u
n
B
e
l
o
w
T
h
r
e
s
h
o
l
d
T
a
r
g
e
I
M
a
x
i
n
u
n
@/BL8/4L9U 4/N39/42&L%9 J%BL:)
When seIIing Ihe policy Ior DirecIors' renuneraIion,
Ihe ConniIIee has regard Io Ihe pay and enploynenI
condiIions elsewhere wiIhin Ihe Group. ln parIicular, Ihe
ConniIIee is kepI inIorned on a regular basis on.
- Salary increases Ior Ihe wider organisaIion
- Conpany-wide beneII provision
- Overall spend on annual bonus
- larIicipaIion levels and ouIcones in Ihe annual bonus plan
F25/ 52B24)
>?@>
Base salary
Iron
1 January 2012
lncrease aI
1 January 2012
Adan Crozier 818,206 2.5%
lan GriIIiIhs 448,694 2.5%
WiIh eIIecI Iron 1 January 2012 Ihe LxecuIive DirecIors
boIh received a salary increase oI 2.5% in line wiIh Ihe
average increase given across Ihe Group.
>?@J
lollowing conpleIion oI Ihe 2013 salary review, Ihe Conpany
agreed a salary increase oI 2.75% Ior all colleagues earning
60,000 and below, wiIh any increase Ior Ihose earning above
60,000 being linked Io Iheir perIornance raIing Ior 2012.
The LxecuIive DirecIors boIh received a salary increase oI
2.75% Iron 1 January 2013 in line wiIh Ihe average increase
given across Ihe Group.
#/95L%9 (/9/EL&5
The najoriIy oI Ihe Senior LxecuIive Group are eiIher
nenbers oI Ihe lTV deIned conIribuIion schene or receive
a cash paynenI equivalenI Io Ihe enployer conIribuIion.
No DirecIors were nenbers oI noney purchase or deIned
conIribuIion schenes operaIed by Ihe Group.
Adan Crozier and lan GriIIIhs received cash paynenIs oI
9% and 15% oI base salary respecIively in lieu oI pension
conIribuIions. These paynenIs are included in Ihe
enolunenIs Iable on page 86.
*9:/9&L8/5
The incenIive Iranework used in 2012 will conIinue Io be
used in 2013. lI is based on Ihe Iollowing principles.
- sinple overall archiIecIure,
- shareholder aligned incenIives. reduced reliance on shorI-
Iern cash renuneraIion, increased long-Iern Iocus and
alignnenI wiIh Ihe shareholder experience,
- applicaIion oI sIraIegic change neIrics. linked Io boIh
sIraIegy and Inancial perIornance,
- supporI a culIure oI accounIabiliIy. valuing execuIion and
delivery, wiIh a clear connercial Iocus, and
- reward susIained perIornance over an exIended period.
LxecuIives are required Io deIer a signiIcanI proporIion oI
any annual bonus inIo shares in order Io achieve naxinun
award opporIuniIies under long-Iern incenIive awards.
73"$,K,*$1 )/+*/,)6*-
Annual incenIives are provided Ior Ihe Senior LxecuIive
Group Ihrough Ihe lTV Annual Bonus Schene (Bonus) and
Ihe DeIerred Share Award llan (DSA). The perIornance
condiIions IhaI apply are seI on an individual basis and are
closely linked Io Ihe Conpany's corporaIe, Inancial and
sIraIegic prioriIies.
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
;=
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/-)0"1!1,0
E*1</*$#,)"/ E*8"$, +"/,)/<*%
Y20LN3N F%935 %JJ%4&39L&L/5
% oI base salary Cash
Conpulsory
DeIerral
OpIional
DeIerral ToIal
Adan Crozier 60% 60% 60% 180% oI salary
lan GriIIiIhs 55% 55% 55% 165% oI salary
lor 2013 Ihe naxinun Bonus opporIuniIies will renain
unchanged Ior Adan Crozier and lan GriIIIhs aI 180% and
165% oI base salary respecIively.
?=>? F%935
lerIornance IargeIs Ior Ihe Senior LxecuIive Group in 2012
were seI Io ensure Ihey supporI boIh Ihe TransIornaIion
llan and delivery oI key operaIional ouIcones. The
ConniIIee ensured IhaI Ihe naxinun bonus opporIuniIy
could only be achieved Ior signiIcanI ouIperIornance oI
all corporaIe, Inancial and individual bonus ouIcones, wiIh
IargeI perIornance achieving a 60% payouI oI naxinun
bonus opporIuniIy.
2"$8"$#,* #/% ')/#/+)#: ,#$0*,-
The najoriIy oI Ihe bonus opporIuniIy (60%) was based
upon Ihe achievenenI oI corporaIe and Inancial IargeIs,
weighIed Io Ihe area oI Ihe business Ior which Ihe LxecuIive
has prinary responsibiliIy. Across Ihe Senior LxecuIive Group
Ihese IargeIs include.
TargeI TransIornaIion lrioriIy
lTV plc LBlTA
Divisional LBlTA
lroIiI Io Cash Conversion
lanily SOV
Online IargeIs
Pevenue IargeIs
ConIenI creaIion IargeIs
Delivery oI agreed cosI savings IargeIs
lTV's Inancial perIornance in 2012 has been sIrong, as
ouIlined in Ihe lerIornance & linancials SecIion. ln lighI
oI perIornance during Ihe year, Ihe Iollowing paynenI
levels againsI sone oI Ihe corporaIe Inancial IargeIs Ior Ihe
LxecuIive DirecIors have been approved.
TargeI
Achieved
2012
Bonus
layouI
2012
Achieved
2011
Bonus
layouI
2011
lTV plc LBlTA* (beIore
excepIional iIens) 112.6% 100% 103.9% 75.6%
lroIiI Io Cash Conversion 117.3% 100% 121% 100%
CosI savings 120.8% 100% 118.3% 100%
* The ConniIIee has ensured IhaI nanagenenI do noI beneII Iron or are penalised by
signiIcanI changes in Ihe UK adverIising narkeI by applying a raIcheI Io lTV plc LBlTA.
F/%)6)%<#: ,#$0*,-
The renainder oI Ihe bonus opporIuniIy (40%) was based
upon Ihe conIribuIion IhaI Ihe execuIive nakes Ioward Ihe
overall TransIornaIion llan Ihrough Ihe delivery oI speciIc
IargeIs. ln seIIing Ihese personal IargeIs consideraIion is
given Io Ihe progress required Io deliver Ihe nexI nilesIones
oI Ihe TransIornaIion llan and alignnenI across Ihe Senior
LxecuIive Group.
?=>P F%935
The ConniIIee has used a consisIenI approach Io seI
2013 perIornance IargeIs and neasures which conIinue Io
supporI boIh Ihe delivery oI Ihe TransIornaIion llan and
key operaIional ouIcones. TargeI perIornance will resulI in
a payouI oI 60% oI Ihe naxinun Bonus opporIuniIy.
The naxinun Bonus opporIuniIy can only be achieved Ior
signiIcanI ouIperIornance oI all corporaIe, Inancial and
individual IargeIs.
lor Adan Crozier and lan GriIIIhs 60% oI Ihe Bonus
opporIuniIy will be based upon Ihe achievenenI oI
corporaIe and Inancial IargeIs. The renaining 40% will be
based upon Ihe personal conIribuIion Ihey nake Iowards
Ihe overall TransIornaIion llan.
L"/0 ,*$1 )/+*/,)6*-
The lerIornance Share llan (lSl) conIinues Io be used as
Ihe only long-Iern incenIive plan.
Key IeaIures oI Ihe lSl, including Ihe naxinun
opporIuniIies and perIornance neasures, are seI ouI in Ihe
Iables on pages 82 and 83.
!!"#$%"& ##(#!(!"#! )*++, -.+
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ln order Io ensure IhaI LxecuIives are only rewarded iI value
is delivered Io shareholders, awards under Ihe lSl are
subjecI Io an iniIial cunulaIive adjusIed LlS perIornance
gaIeway. lI Ihis gaIeway is achieved, perIornance will Ihen
be assessed by reIerence Io condiIions deIailed in Ihe
Iable on pages 82 and 83, seI in line wiIh our key sIraIegic
objecIives.
These condiIions are key neasures oI success over Ihe
IransIornaIion period as Ihe Conpany reduces iIs reliance
on spoI adverIising revenues and generaIes greaIer
shareholder value Iron iIs inIegraIed producIion and
broadcasI businesses.
lanily SOV and non-NAP are boIh neasures oI perIornance
IhaI are inporIanI Io our business as IurIher explained in
Ihe lerIornance & linancials secIion.
The perIornance IesIs under successive lSl awards
have been increased in line wiIh Ihe progress under Ihe
TransIornaIion llan, as shown in Ihe graph below.
!"##
!"#"
#$ #% !" !# !! !& !' !( !) !$ !* !% &" &# &! && &'
+,-./-0
!"#"$%&'() %+,"-&)+ ./0
!"#!
!"#&
#*
DeIails oI ouIsIanding awards are seI ouI on page 87.
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
;?
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/-)0"1!1,0
E*1</*$#,)"/ E*8"$, +"/,)/<*%
7<11#$C "' I7I #B#$%-
2010 2011 2012 2013
Award Leve|
(p|an maximum)
150% 150% (90% Core Award and 60% MaIching Award)
Co-investment
requirements
None An award oI up Io 60% oI base salary nay be nade as a
naIch on volunIarily deIerred bonus.
Performance period 3 years 3 years
Performance
conditions
75% TSP
- Measured equally againsI Iwo disIincI
conparaIor groups drawn Iron Ihe lTSL
250 and a speciIc inIernaIional indusIry peer
group.
25% STPATLGlC
- Measured in equal proporIions againsI Iwo
IargeIs.
A GaIeway condiIion oI nininun cunulaIive adjusIed LlS over Ihree years nusI be reached beIore any porIion oI Ihe
award vesIs.
- 50% oI an award vesIs based on cunulaIive adjusIed LlS over Ihree years
- 25% oI an award vesIs based on lanily SOV growIh (2011 and 2012 plaIIorn adjusIed. 2013 no longer plaIIorn
adjusIed due Io digiIal swiIchover)
- 25% oI an award vesIs based on non-NAP growIh
5trategic target Thresho|d Maximum
CunulaIive
adjusIed LlS
18p 20p
lanily SOV MainIain aI
2009 levels
+2%
LlS cunulaIive years 2010 Io 2012
5trategic target
GaIeway
CunulaIive
adjusIed LlS
lanily SOV
Annual Non-NAP
growIh
Thresho|d Maximum
21p
21p 24p
MainIain aI
2010 levels
+2%
5% 10%
LlS cunulaIive years 2011 Io 2013
Thresho|d Maximum
26.15p
26.15p 28.76p
MainIain aI
2011 levels
+2%
5% 10%
LlS cunulaIive years 2012 Io 2014
Thresho|d Maximum
30.4p
30.4p 33.4p
23% +2%
5% 10%
LlS cunulaIive years 2013 Io 2015
!"#
$"#
!"# %&'
("# &)*+),-./
!"#
$!#
$!#
!"# %&'
(!# ')*
(!# +,+-./0
Vesting
75% TSP
- Median and below nil
- Upper quarIile 100%
- VesIing on a sIraighI-line basis in beIween.
25% STPATLGlC
- Threshold perIornance LlS. 30%, SOV. 50%
- Maxinun perIornance 100%
- VesIing on a proporIionaIe basis (SOV) and a
sIraighI-line basis (LlS) beIween Ihreshold and
naxinun.
50% cunulaIive adjusIed LlS
- Threshold perIornance 30%
- Maxinun perIornance 100%
- VesIing on a sIraighI-line basis in beIween.
25% lanily SOV
- Threshold perIornance 50%
- Maxinun perIornance 100%
- VesIing on a proporIionaIe basis beIween Ihreshold and naxinun.
25% non-NAP
- Threshold perIornance 30%
- Maxinun perIornance 100%
- VesIing on a sIraighI-line basis beIween Ihreshold and naxinun.
Exercise period As 2011 Io 2013 Once vesIed, awards can be exercised Ior 12 nonIhs, any porIion oI Ihe award IhaI does noI vesI or is noI exercised will
lapse.
Leavers As 2011 Io 2013 SIandard good leaver provisions apply (broadly relaIing Io conpassionaIe circunsIances) and include proraIing Ior
service. lI a parIicipanI ceases Io be enployed Ior any oIher reason, Ihe award will lapse unless deIernined oIherwise.
Change of contro| As 2011 Io 2013 OuIsIanding awards and opIions would nornally vesI and becone exercisable on a change oI conIrol, subjecI Io Ihe
saIisIacIion oI any perIornance condiIions. The proporIion IhaI vesIs nay be capped depending on Ihe Iine elapsed
since granI.
IB2R(2:S
There are clawback provisions builI inIo Ihe rules oI Ihe
Bonus, DSA and lSl, which allow Ior Ihe IorIeiIure and non-
paynenI oI incenIive awards IhaI are sIill Io be earned, sIill
Io vesI or have been deIerred, iI an LxecuIive's enploynenI
is IerninaIed.
A$24/$%BCL9U U3LC/BL9/5
Under Ihe renuneraIion policy, LxecuIives are required
Io build up a subsIanIial anounI oI renuneraIion IhaI
has been deIerred or renains subjecI Io perIornance
condiIions.
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The graph below shows Ihe TSP perIornance oI Ihe
Conpany againsI Ihe lTSL 100 and lTSL 250 index over
Ihe Ive-year period Io 31 Decenber 2012. BoIh indices have
been shown as Ihe Conpany has been a consIiIuenI oI boIh
over Ihe previous Ive years.
!
"!
#!
$!
%!
&!!
&"!
&#!
!"!"#$$% !"!"#$$& !"!"#$!$ !"!"#$!! !"!"#$!# !"!"#$!'
'() +(,- &!! +(,- ".!
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!"#$% $#'() *+,
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"
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+
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/

0
%
,
+
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+
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2
3
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4
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,
2
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5
%
1
%
6
7
8
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9
6
$
+
6
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:
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7<11#$C "' I7I #B#$%-
2010 2011 2012 2013
Award Leve|
(p|an maximum)
150% 150% (90% Core Award and 60% MaIching Award)
Co-investment
requirements
None An award oI up Io 60% oI base salary nay be nade as a
naIch on volunIarily deIerred bonus.
Performance period 3 years 3 years
Performance
conditions
75% TSP
- Measured equally againsI Iwo disIincI
conparaIor groups drawn Iron Ihe lTSL
250 and a speciIc inIernaIional indusIry peer
group.
25% STPATLGlC
- Measured in equal proporIions againsI Iwo
IargeIs.
A GaIeway condiIion oI nininun cunulaIive adjusIed LlS over Ihree years nusI be reached beIore any porIion oI Ihe
award vesIs.
- 50% oI an award vesIs based on cunulaIive adjusIed LlS over Ihree years
- 25% oI an award vesIs based on lanily SOV growIh (2011 and 2012 plaIIorn adjusIed. 2013 no longer plaIIorn
adjusIed due Io digiIal swiIchover)
- 25% oI an award vesIs based on non-NAP growIh
5trategic target Thresho|d Maximum
CunulaIive
adjusIed LlS
18p 20p
lanily SOV MainIain aI
2009 levels
+2%
LlS cunulaIive years 2010 Io 2012
5trategic target
GaIeway
CunulaIive
adjusIed LlS
lanily SOV
Annual Non-NAP
growIh
Thresho|d Maximum
21p
21p 24p
MainIain aI
2010 levels
+2%
5% 10%
LlS cunulaIive years 2011 Io 2013
Thresho|d Maximum
26.15p
26.15p 28.76p
MainIain aI
2011 levels
+2%
5% 10%
LlS cunulaIive years 2012 Io 2014
Thresho|d Maximum
30.4p
30.4p 33.4p
23% +2%
5% 10%
LlS cunulaIive years 2013 Io 2015
!"#
$"#
!"# %&'
("# &)*+),-./
!"#
$!#
$!#
!"# %&'
(!# ')*
(!# +,+-./0
Vesting
75% TSP
- Median and below nil
- Upper quarIile 100%
- VesIing on a sIraighI-line basis in beIween.
25% STPATLGlC
- Threshold perIornance LlS. 30%, SOV. 50%
- Maxinun perIornance 100%
- VesIing on a proporIionaIe basis (SOV) and a
sIraighI-line basis (LlS) beIween Ihreshold and
naxinun.
50% cunulaIive adjusIed LlS
- Threshold perIornance 30%
- Maxinun perIornance 100%
- VesIing on a sIraighI-line basis in beIween.
25% lanily SOV
- Threshold perIornance 50%
- Maxinun perIornance 100%
- VesIing on a proporIionaIe basis beIween Ihreshold and naxinun.
25% non-NAP
- Threshold perIornance 30%
- Maxinun perIornance 100%
- VesIing on a sIraighI-line basis beIween Ihreshold and naxinun.
Exercise period As 2011 Io 2013 Once vesIed, awards can be exercised Ior 12 nonIhs, any porIion oI Ihe award IhaI does noI vesI or is noI exercised will
lapse.
Leavers As 2011 Io 2013 SIandard good leaver provisions apply (broadly relaIing Io conpassionaIe circunsIances) and include proraIing Ior
service. lI a parIicipanI ceases Io be enployed Ior any oIher reason, Ihe award will lapse unless deIernined oIherwise.
Change of contro| As 2011 Io 2013 OuIsIanding awards and opIions would nornally vesI and becone exercisable on a change oI conIrol, subjecI Io Ihe
saIisIacIion oI any perIornance condiIions. The proporIion IhaI vesIs nay be capped depending on Ihe Iine elapsed
since granI.
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
;W
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/-)0"1!1,0
./9/R2B %E 5$24/ JB295
The lSl and SAYL schenes are approaching Ihe end oI Iheir Ien year liIe. A proposal Io renew Ihe schenes will be subniIIed
Io Ihe AGM in May 2013. No subsIanIive changes Io Ihe rules are proposed.
KBLU9N/9& RL&$ 5$24/$%BC/45
The ConniIIee conIinues Io recognise Ihe inporIance oI LxecuIive DirecIors beconing shareholders so as Io align Iheir
inIeresIs wiIh oIher shareholders. Shareholding guidelines are in place, which encourage LxecuIive DirecIors Io build up a
holding oI lTV plc shares, 50% oI Ihe requirenenI wiIhin Ihree years oI appoinInenI and Ihe renainder wiIhin Ive years as
Iollows.
lercenIage oI
base salary
lercenIage held
aI 1 January 2013
Adan Crozier 200% 62%
lan GriIIiIhs 150% 299%
OIher nenbers oI Ihe ManagenenI Board are required Io hold beIween 50% and 100% oI Iheir salary in line wiIh Iheir
individual annual bonus opporIuniIy.
DeIails oI Ihe LxecuIive DirecIors' currenI personal shareholdings are shown on page 88.
A/48L:/ :%9&42:&5
LxecuIive DirecIors have service conIracIs IhaI provide Ior 12 nonIhs' noIice on eiIher side. There are no special provisions
IhaI apply in Ihe evenI oI a change oI conIrol.
DaIe oI appoinInenI
NaIure oI
conIracI
NoIice period
Iron Conpany
NoIice period
Iron DirecIor
ConpensaIion
provisions Ior early
IerninaIion
Adan Crozier 26 April 2010 Polling 12 MonIhs 12 MonIhs None
lan GriIIiIhs 9 SepI 2008 Polling 12 MonIhs 12 MonIhs None
Z0/:3&L8/ @L4/:&%45_ 9%9`/0/:3&L8/ CL4/:&%45$LJ5
WiIh speciIc approval oI Ihe Board, LxecuIive DirecIors nay accepI exIernal appoinInenIs as non-execuIive direcIors oI
oIher conpanies and reIain any relaIed Iees paid Io Ihen.
During Ihe year, Adan Crozier reIained Iees Ior an exIernal non-execuIive direcIorship as seI ouI below.
Conpany
2012
000
Debenhans plc (resigned Iron 1 SepIenber 2012) 35
Adan Crozier becane a non-execuIive direcIor oI G4S plc wiIh eIIecI Iron 1 January 2013.
E*1</*$#,)"/ E*8"$, +"/,)/<*%
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M%9`/0/:3&L8/ @L4/:&%45
Lach Non-execuIive DirecIor has a conIracI oI service wiIh Ihe Conpany, IurIher deIails oI which can be Iound in Ihe
Governance secIion on page 64. lees paid Io Ihe Non-execuIive DirecIors are deIernined by Ihe Chairnan and LxecuIive
DirecIors based on narkeI inIornaIion, and in accordance wiIh Ihe resIricIions conIained wiIhin Ihe Conpany's ArIicles oI
AssociaIion.
The Iees are reviewed annually. There is no Iee Ior nenbership oI Ihe NoninaIion ConniIIee. lI has been agreed IhaI Iron
1 January 2013 Ihe basic Iee will increase by 2.75% Io 60,559 and Iees Ior nenbership oI Ihe AudiI and PenuneraIion
ConniIIee will also increase by 2.75% Io 5,137. The annual Iees payable in 2012 were as Iollows.
Non-execuIive DirecIors' Iees
Board nenber 58,938
AddiIional Iees Ior.
Senior lndependenI DirecIor 25,000
AudiI ConniIIee Chairnan 20,000
AudiI ConniIIee nenber 5,000
PenuneraIion ConniIIee Chairnan 15,000
PenuneraIion ConniIIee nenber 5,000
NoIe.
DeIails oI conniIIee nenbership can be Iound in Ihe Governance secIion on page 58 and 59.
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The Non-execuIive DirecIors are required Io use 25% oI Iheir annual Iees, aIIer sIaIuIory deducIions, Io acquire shares in Ihe
Conpany. The shares are purchased quarIerly and are held by a noninee on Iheir behalI. The shares release when Ihey reIire
Iron Ihe Board. DeIails oI Iheir shareholdings can be Iound on page 88.
I$2L4N29_5 E// 29C 5$24/ 2R24C
The Chairnan was appoinIed in 2010 Ior a Ihree-year-Iern on a Iee oI 300,000 per annun wiIh an award oI shares valued
aI 600,000 (1.2 nillion shares) aI IhaI Iine. These awards released in Ihree Iranches oI 400,000 shares over Ihe Ihree-year
Iern oI his iniIial appoinInenI. The IrsI Iranche was released on 23 May 2011, Ihe second Iranche on 31 Decenber 2011 and
Ihe Ihird Iranche on 31 Decenber 2012.
The Chairnan was reappoinIed Ior a IurIher Ihree-year Iern wiIh eIIecI Iron 1 January 2013 and conIinues Io receive an
annual Iee oI broadly Ihe sane value (500,000 per annun) oI which 200,000 per annun (40%) will be invesIed under Ihe
share acquisiIion policy seI ouI above. le receives no IurIher paynenI Ior nenbership oI conniIIees.
!!"#$%"& ##(#!(!"#! )*++, -.+
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!""#$% '()*+, $"- !..*#",/ 0120
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!"#$%#&'()*+,&,-.
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/-)0"1!1,0
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The Iollowing Iables provide deIails oI each oI Ihe DirecIors' enolunenIs, pension conIribuIions, righIs Io share opIions and
awards. All oI Ihese Iables have been audiIed by KlMG AudiI llc.
KUU4/U2&/ @L4/:&%45_ 4/N39/42&L%9
The IoIal anounIs oI DirecIors' renuneraIion Ior Ihe period 1 January 2012 Io 31 Decenber 2012 were as Iollows.
2012
000
2011
000
LnolunenIs 3,422 2,964
Gains on exercise oI share opIions 444
Gains on release oI resIricIed share awards 421 943
4,2S7 3,907
NoIes.
1
All share relaIed gains are valued pre-Iax on daIe oI exercise by or release Io parIicipanI.
2
DeIails oI gains on exercise oI share opIions and release oI resIricIed share awards can be Iound on page 87.
3
lurIher inIornaIion is conIained in Ihe Iable below.
@L4/:&%45_ /N%B3N/9&5
The DirecIors' enolunenIs Ior Ihe year ended 31 Decenber 2012 are seI ouI in Ihe Iable below.
Nane oI DirecIor SIaIus
Base salary/
Iees
000
BeneIiIs in
kind
1
000
lensions
conIribuIion
2
000
ShorI-Iern
incenIives
(cash)
4
000
Tota|
for the
year ended
31 December
2012
000
ToIal
Ior Ihe
year ended
31 Decenber
2011
000
Adan Crozier LxecuIive 818 19 74 897 1,S0S 1,524
lan GriIIiIhs LxecuIive 449 14 69 456 9SS 828
Mike Clasper Non-execuIive 94 94 93
Poger laxon
3
Non-execuIive 10 10
Andy lasIe Non-execuIive 79 79 78
lucy Neville-PolIe Non-execuIive 59 59 58
Archie Nornan Non-execuIive 300 300 300
John Ornerod Non-execuIive 84 S4 83
ToIal enolunenIs 1,893 33 143 1,353 3,422 2,964
NoIes.
1
This disclosure includes Ihe cosI oI privaIe nedical insurance and car relaIed beneIIs.
2
lension conIribuIions represenI cash paynenIs in lieu oI pension.
3
lees paid Iron appoinInenI on 31 OcIober 2012 Io 31 Decenber 2012.
4
ShorI-Iern incenIives. LxecuIive DirecIors will receive a bonus Ior 2012 as deIailed in Ihe Iable below, Ihe cash elenenI oI which is shown in Ihe Iable above.
lercenIage
oI naxinun
bonus
opporIuniIy
earned
ToIal value
oI 2012
Bonus
000
Value paid in cash
(shown in Ihe
enolunenIs Iable
above)
000
Value
conpulsorily
deIerred inIo
shares under
Ihe DSA
000
Value
volunIarily
deIerred inIo
shares under
Ihe DSA
000
Adan Crozier 91.33% 1,345 897 448
lan GriIIiIhs 92.30% 683 455 228
The percenIage oI naxinun bonus opporIuniIy earned Ior Adan Crozier was 95.56% on corporaIe and Inancial IargeIs and 85% on individual IargeIs and Ior lan GriIIIhs was 97.5% on
corporaIe and Inancial IargeIs and 84.5% on individual IargeIs.
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!!"#$%"& ##(#!(!"#! )*++, -.+
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@L4/:&%45_ L9&/4/5&5 L9 5$24/ 2R24C5
lnIornaIion given in Ihe Iable below is Ior Ihe period Iron 1 January 2012 Io 31 Decenber 2012.
Award daIe
AI
1 January
2012
Awarded
in year
VesIed
in year
lapsed
in year
At
31 Dec
2012
Share price
used Ior
award
(pence)
Lxercise
price
(pence)
DaIe oI
release/
exercise
in 2012
Share price
aI daIe oI
release
(pence)
MarkeI value
aI daIe oI
release
(pre-Iax)
VesIing daIe/
Lxercise period
Adam Crozier
Deferred 5hare Award P|an
28 March 2012 Conpulsory
DeIerral
1
477,112 477,112 88.60 Nil March 2015
28 March 2012 VolunIary
DeIerral
1
238,557 23S,557 88.60 Nil March 2015
8 March 2011 Conpulsory
DeIerral
2
276,314 276,314 91.38 Nil March 2014
8 March 2011 VolunIary
DeIerral
2
276,314 276,314 91.38 Nil March 2014
Ni|-cost Cption Award
26 April 2010
3
4,115,044 4,115,044 56.5 Nil
April 2013
April 2014
Performance 5hare Award
1 March 2012 Core Award 899,347 S99,347 81.88 Nil
March 2015
March 2016
28 March 2012 MaIching
Award 238,557 23S,557 88.60 Nil
March 2015
March 2016
8 March 2011 Core Award 786,196 7S6,196 91.38 Nil
March 2014
March 2015
8 March 2011 MaIching
Award 276,314 276,314 91.38 Nil
March 2014
March 2015
Ian Griffiths
Deferred 5hare Award P|an
28 March 2012 Conpulsory
DeIerral
1
234,406 234,406 88.60 Nil March 2015
28 March 2012 VolunIary
DeIerral
1
117,204 117,204 88.60 Nil March 2015
8 March 2011 Conpulsory
DeIerral
2
203,478 203,47S 91.38 Nil March 2014
8 March 2011 VolunIary
DeIerral
2
203,478 203,47S 91.38 Nil March 2014
Performance 5hare Award
1 March 2012 Core Award 493,192 493,192 81.88 Nil
March 2014
March 2015
28 March 2012 MaIching
Award 117,204 117,204 88.60 Nil
March 2014
March2015
8 March 2011 Core Award 431,140 431,140 91.38 Nil
March 2014
March 2015
8 March 2011 MaIching
Award 203,478 203,47S 91.38 Nil
March 2014
March 2015
26 March 2010
4
933,820 933,S20 56.89 Nil
March 2013
March 2014
1 June 2009
4,5
1,188,812 1,188,812 1,1SS,S12 35.75 Nil
June 2012
June 2013
Turnaround P|an
6
2 OcIober 2008 3,017,752 502,959 2,514,793 42.25 Nil 1 March 88.21 443,676
Dec 2011
Dec 2012
Archie Norman
Pestricted 5hare Award
17 March 2010
7
400,000 400,000 50.17 Nil 31 Dec 105.22 420,893 Dec 2012
!!"#$%"& ##(#!(!"#! )*++, -.+
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;;
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/-)0"1!1,0
NoIes.
1
An award over resIricIed shares Ior 2011 perIornance.
2
An award over resIricIed shares Ior 2010 perIornance.
3
An award over nil-cosI opIions subjecI Io Ihe sane provisions and perIornance
condiIions aIIaching Io Ihe awards nade under Ihe lSl in March 2010.
4
The porIion oI Ihis award subjecI Io TSP will be neasured equally againsI Iwo disIincI
conparaIor groups, Ihe consIiIuenIs oI Ihe lTSL 250 index (excluding conpanies
Iron Ihe basic naIerials, Inancial services, oil and gas and indusIrials indusIries), and
an indusIry secIor speciIc group oI 23 conpanies. BriIish Sky BroadcasIing Group,
Scripps NeIworks, Canal llus, Telecinco, CBS, TI1 (Tv.lse.1), Daily Mail & General TrusI,
Tine Warner, M6-MeIropole TV, TriniIy Mirror, MediaseI, Viacon DigiIal, Modern Tines
Group, Virgin Media, News CorporaIion, Vivendi, learson, Wll Group, lrenier AG, Yell
Group, lroseiben SaI 1 lI., Zon MulIinedia and PTl Group.
5
This award vesIed in Iull on 1 June 2012. lan GriIIIhs has unIil 31 May 2013 Io exercise
Ihe award and Ihe award was unexercised aI Ihe daIe oI Ihis reporI.
6
The Turnaround llan (Ihe llan) was inIroduced in 2007. No awards were nade under
Ihe llan aIIer 2008. An award in Ihe Iorn oI nil-cosI opIions was nade Io a nunber
oI key senior LxecuIives wiIh a naxinun value oI 550% oI Ihe individual's salary.
larIicipanIs were required Io acquire and reIain a nunber oI shares wiIh a value up
Io 100% oI annual base salary Ior Ihe duraIion oI Ihe perIornance period Io
31 Decenber 2011. 75% oI Ihe awards were subjecI Io perIornance over a Ive-year
period. Up Io 50% oI Ihe award subjecI Io TSP (25% oI Ihe IoIal award) was subjecI
Io perIornance over Ihe Ihree-year period Io 31 Decenber 2009 buI Ihis condiIion
was noI neI, and 25% oI Ihe IoIal award lapsed. The balance oI 75% oI Ihe award
was IesIed when Ihe 2011 Inal year resulIs were published againsI Ihe perIornance
condiIions lisIed below. 12.5% oI Ihe IoIal award subjecI Io SOCl vesIed and was
exercised by lan GriIIIhs as shown above. The renainder oI Ihe award lapsed.
TSP. Ihe balance oI Ihe award subjecI Io TSP perIornance neasured againsI
a conparaIor group selecIed Iron Ihe lTSL 100 (excluding cerIain indusIry secIors
IhaI are less relevanI as a benchnark oI perIornance). 25% oI Ihis porIion oI Ihe
award would have vesIed Ior nedian perIornance and sIraighI-line vesIing would
have occurred up Io Iull vesIing Ior upper quarIile perIornance. The conparaIor
conpanies were. BriIish Airways, BriIish Sky BroadcasIing Group, BT Group, CapiIa
Group, Carnival, Conpass Group, Diageo, DSG lnIernaIional, LnIerprise lnns, lone
PeIail Group, lnIerconIinenIal loIels Group, KingIsher, Marks & Spencer Group,
NexI, learson, Peed Llsevier, Thonson PeuIers, SABMiller, ScoIIish & NewcasIle,
VodaIone Group, Wll and Yell Group.
SIraIegic perIornance IargeIs. There were Iour sIraIegic IargeIs, each having an
equal weighIing. lor achieving Ihreshold perIornance, 25% oI Ihe award relaIing
Io each IargeI would have vesIed, wiIh Iull vesIing Ior achieving Ihe naxinun
IargeI. ln beIween Ihese poinIs, award vesIed on a sIraighI-line basis. SOCl (lTV
lanily) Ihreshold 36.6% and naxinun 38.5%, Pevenue GrowIh Ihreshold 2%
and naxinun 5% per annun, AdjusIed LlS Ihreshold 8p and naxinun 12p,
Share price Ihreshold 1.35 and naxinun 2.25 neasured as an average over any
28-day period wiIhin Ihe Inal Ihree years oI Ihe llan.
All vesIed awards under Ihis llan have been exercised and Ihe llan IerninaIed on
31 Decenber 2012.
7
One-oII award nade on joining lTV. The award released in Ihree Iranches oI 400,000
shares over Ihe iniIial Ihree-year appoinInenI Iern. WhilsI held under award Ihe
shares could noI be sold or IransIerred.
8
The IoIal narkeI value oI gains on share awards released or exercised during Ihe year
was 864,569 as shown in Ihe AggregaIe DirecIors' renuneraIion Iable on page 86.
@L4/:&%45_ L9&/4/5& L9 5$24/5
The Igures seI ouI below represenI shareholdings in Ihe
ordinary share capiIal oI lTV plc beneIcially owned by
DirecIors and Iheir Ianily inIeresIs.
There were no changes in DirecIors' inIeresIs in shares
beIween Ihe end oI Ihe Inancial year and 27 lebruary 2013.
DirecIor
31 December
2012
31 Decenber
2011
Mike Clasper 100,363 85,918
Adan Crozier 29S,25S 291,139
Poger laxon 0 0
lan GriIIiIhs SS1,S52 640,960
Andy lasIe 7S,05S 65,487
lucy Neville-PolIe 22,154 14,161
Archie Nornan 1,163,167 971,584
John Ornerod 122,7SS 109,960
A$24/ J4L:/ L9E%4N2&L%9
The narkeI price oI lTV plc ordinary shares aI 31 Decenber
2012 was 105.2 pence and Ihe range during Ihe year was
107.2 pence (on 24 Decenber 2012) and 69.45 pence (on
5 January 2012).
A$24/$%BC/4 8%&L9U
AI Ihe AGM in 2012 Ihe voIes received on Ihe proposal Io
agree Ihe PenuneraIion PeporI were as Iollows.
Nunber oI
shares
lercenIage oI
Ihe IoIal voIe
lor 2,438,591,932 99.28%
AgainsI 17,615,476 0.72%
AbsIenIions 49,961,994
KJJ4%82B
The PenuneraIion PeporI was approved by Ihe Board on
27 lebruary 2013 and signed on iIs behalI by Andy lasIe.
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A3(5&29&L2B 5$24/$%BCL9U5
As aI 31 Decenber 2012 Ihe Conpany had received
noIiIcaIions Iron Ihe Iollowing conpanies and insIiIuIions
oI Ihe voIing inIeresIs oI Ihenselves and Iheir clienIs in 3%
or nore oI Ihe issued ordinary share capiIal (carrying righIs
Io voIe in all circunsIances) oI Ihe Conpany (nunbers oI
shares and percenIage inIeresIs are as aI Ihe noIiIcaIion
daIes).
At 31 December 2012
5hares %
Sky loldings lId
1
291,684,730 7.46
Blackrock, lnc. 195,504,921 5.00
Brandes lnvesInenI larIners, l.l. 194,304,930 4.97
AXA S.A 170,580,317 4.36
legal and General lnvesInenI
ManagenenI lId 153,692,144 3.93
Majedie AsseI ManagenenI liniIed 195,687,610 5.00
NoIes.
1
Subsidiary oI BriIish Sky BroadcasIing Group plc.
2
A proIle oI shareholdings is seI ouI on page 157.
lollowing Ihe year end, a noIiIcaIion was received Iron AXA
S.A IhaI Iheir inIeresI had risen Io 5.06%.
A$24/ :2JL&2B
Issued: AI Ihe daIe oI Ihis reporI Ihere were 3,912,303,883
ordinary shares oI 10 pence each in issue, all oI which are
Iully paid up and quoIed on Ihe london SIock Lxchange.
Pights: The righIs aIIaching Io Ihe Conpany's ordinary
shares, as well as Ihe powers oI Ihe Conpany's DirecIors,
are seI ouI in Ihe Conpany's ArIicles oI AssociaIion. Unless
expressly speciIed Io Ihe conIrary, Ihe ArIicles nay only be
anended by special resoluIion oI Ihe shareholders. A copy
oI Ihe ArIicles can be obIained Iron Ihe Conpany's websiIe
aI www.itvp|c.comlaboutlgovernance or by wriIing Io Ihe
Conpany SecreIary.
Pestrictions: There are no resIricIions on Ihe IransIer oI
ordinary shares in Ihe capiIal oI Ihe Conpany oIher Ihan
Ihose which nay be inposed by law Iron Iine Io Iine. ln
accordance wiIh Ihe Disclosure and Transparency rules,
cerIain enployees are required Io seek approval Io deal in
lTV shares. The Conpany is noI aware oI any agreenenIs
beIween shareholders IhaI nay resulI in resIricIions on Ihe
IransIers oI securiIies and/or voIing righIs.
Purchase of own shares: The DirecIors have Ihe auIhoriIy
Io purchase up Io 389.2 nillion oI Ihe Conpany's ordinary
shares. The auIhoriIy renains valid unIil Ihe 2013 Annual
General MeeIing, or 9 AugusI 2013 iI earlier.
Trusts: The Conpany has a discreIionary IrusI Iunded
by loans Io acquire shares Ior Ihe poIenIial beneII oI
enployees oI Ihe Group. DeIails oI shares held by Ihe IrusI
aI 31 Decenber 2012 are seI ouI on page 149. During Ihe
year shares have been released Iron Ihe IrusI in respecI oI
share schenes Ior enployees.
I$29U/ %E :%9&4%B
No person holds securiIies in Ihe Conpany carrying special
righIs wiIh regard Io conIrol oI Ihe Conpany.
All oI Ihe Conpany's share schenes conIain provisions
relaIing Io a change oI conIrol. OuIsIanding awards and
opIions would nornally vesI and becone exercisable on
a change oI conIrol, subjecI Io Ihe saIisIacIion oI any
perIornance condiIions. CerIain oI Ihe Group's bonds/
borrowing IaciliIies have change oI conIrol clauses whereby
Ihe issuer can require lTV Io repay/redeen bonds in Ihe
evenI oI a change oI conIrol. The Conpany is noI aware oI
any oIher signiIcanI agreenenIs Io which iI is parIy IhaI
Iake eIIecI, alIer or IerninaIe upon a change oI conIrol oI
Ihe Conpany.
I4/CL&%4 J2)N/9& J%BL:)
The Conpany's policy, in relaIion Io all iIs suppliers, is Io
seIIle Ihe Ierns oI paynenI when agreeing Ihe Ierns oI
Ihe IransacIion, ensure awareness oI Ihe Ierns and Io abide
by Ihose Ierns provided IhaI iI is saIisIed IhaI Ihe supplier
has provided Ihe goods or services in accordance wiIh Ihe
agreed Ierns and condiIions. The Conpany does noI Iollow
any code or sIandard paynenI pracIice. The nunber oI days'
purchases ouIsIanding Ior paynenI by Ihe Conpany as aI
31 Decenber 2012 was nil days (2011. nil).
#/95L%95
The Group operaIes a pension schene which provides
reIirenenI and deaIh beneIIs Ior enployees oI lTV. The lTV
lension Schene (Ihe Schene) conprises Ihree secIions.
A, B and C. SecIion A includes Ihe deIned conIribuIion
(DC) secIion oI Ihe Schene. The DC secIion is open Io new
nenbers. The najoriIy oI deIned beneII (DB) secIions
were closed Io new nenbers in 2002 (wiIh Ihe lasI secIion
closing on 1 AugusI 2007) buI are sIill open Io IuIure accrual.
lTV lension Schene liniIed (Ihe TrusIee) nanages Ihe DB
and DC asseIs oI Ihe Schene, which are held under IrusI
separaIely Iron Ihose oI Ihe Group. lI is Ihe responsibiliIy
oI Ihe TrusIee Io have in place appropriaIe Iraining Ior iIs
direcIors, governance and eIIecIive conniIIees.
M,3*$ 5"6*$/#/+* #/% 7,#,<,"$C ()-+:"-<$*-
!!"#$%"& ##(#!(!"#! )*++, -.+
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!""#$% '()*+, $"- !..*#",/ 0120
<=
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/-)0"1!1,0
The TrusIee has Iour ConniIIees. lnvesInenI, AudiI and
OperaIions, DC and CorporaIe AIIairs. The CorporaIe AIIairs
ConniIIee is convened as and when appropriaIe Ior dealing
wiIh any corporaIe acIiviIies IhaI nay arise.
The TrusIee conprises nine direcIors Ihe TrusIee
Chairnan, IogeIher wiIh Iour direcIors appoinIed by Ihe
Conpany and Iour direcIors noninaIed by Ihe nenbers.
WiIh eIIecI Iron 31 Decenber 2012 and aIIer sone 20
years in Ihe role, Grahan larroII sIepped down as TrusIee
Chairnan and was replaced by Max Graesser. During 2012,
one oI Ihe nenber noninaIed direcIors resigned and will
be replaced by a new direcIor on conpleIion oI a selecIion
process.
The TrusIee board and each ConniIIee have a business
plan, which is reviewed and updaIed on an annual basis,
IogeIher wiIh Ihe associaIed budgeI. The TrusIee board also
has a risk regisIer, a conIicIs oI inIeresI policy and a regisIer
oI inIeresIs policy, all oI which are reviewed aI leasI annually.
TrusIee evaluaIions Iake place each year and are currenIly
being IurIher developed as parI oI a conIinuing TrusIee
board eIIecIiveness review. The TrusIee direcIors receive
regular Iraining IhroughouI Ihe year, a nininun oI Iwo
days' Iraining is expecIed Io be underIaken. Training
requirenenIs are idenIiIed by reIerence Io any skills gaps
and speciIc conniIIee roles and Iraining is delivered boIh
by aIIendance aI exIernal courses and wiIh IargeIed Iraining
Io supporI speciIc agenda iIens. During early 2012, Ihose
TrusIee direcIors who had noI conpleIed Ihe lension
PegulaIor's IoolkiI received Iraining on Ihe PegulaIor's
TrusIee Knowledge and UndersIanding scope guidance Io
assisI wiIh conpleIion oI Ihe IoolkiI.
All advisers and suppliers are appoinIed Ihrough a rigorous
Iender process and are noniIored Ihrough regular inIornal
review neeIings. There is a IineIable Ior conpleIing
a Iornal review oI advisers. The legal advisers, DC
adninisIraIors and annuiIy brokers were Iornally reviewed
in 2012. The legal advisers and DC adninisIraIors were
reappoinIed, an new annuiIy broker was appoinIed.
To encourage greaIer pension savings, Ihe GovernnenI has
inIroduced auIo enrolnenI. This requires enployers Io enrol
eligible enployees inIo a pension schene auIonaIically.
The requirenenI Io conply wiIh Ihe auIo enrolnenI
regulaIions is being phased in wiIh eIIecI Iron 1 OcIober
2012, wiIh larger enployers required Io conply IrsI and wiIh
nediun-sized and snaller enployers Iollowing aI a laIer
period. The size oI an enployer's largesI lAYL schene will
deIernine Ihe poinI aI which Ihe new duIies aIIecI Iheir
organisaIion (Ihe 'sIaging daIe'). lor lTV, Ihe sIaging daIe is
1 March 2013 and Ihe Conpany has underIaken a projecI in
order Io neeI Ihe requirenenIs wiIh eIIecI Iron IhaI daIe.
Pension 5cheme indemnities: QualiIying pension schene
indenniIy provisions, as deIned in secIion 235 oI Ihe
Conpanies AcI 2006, were in Iorce Ior Ihe Inancial year
ended 31 Decenber 2012 and renain in Iorce Ior Ihe beneII
oI each oI Ihe DirecIors oI lTV lension Schene liniIed, a
subsidiary oI lTV plc. These indenniIy provisions cover, Io Ihe
exIenI perniIIed by law, cerIain losses or liabiliIies incurred
as a direcIor or oIIcer oI lTV lension Schene liniIed.
K3CL&
The DirecIors who held oIIce aI Ihe daIe oI approval oI
Ihe DirecIors' PeporI conIrn IhaI, so Iar as Ihey are each
aware, Ihere is no relevanI audiI inIornaIion oI which Ihe
Conpany's audiIor is unaware, and each DirecIor has Iaken
all sIeps IhaI Ihey oughI Io have Iaken as a DirecIor in order
Io nake Ihenselves aware oI any relevanI audiI inIornaIion
and Io esIablish IhaI Ihe Conpany's audiIor is aware oI IhaI
inIornaIion.
As reconnended by Ihe AudiI ConniIIee, a resoluIion
Ior Ihe reappoinInenI oI KlMG AudiI llc as audiIor Io
Ihe Conpany will be proposed aI Ihe 2013 Annual General
MeeIing.
K9932B 7/9/42B Y//&L9U
The Annual General MeeIing will be held on Wednesday,
15 May 2013 aI 11.00 an aI Ihe Queen LlizabeIh ll
ConIerence CenIre, Broad SancIuary, WesIninsIer, london,
SW1l 3LL. The NoIice oI Ihe Annual General MeeIing
conIains an explanaIion oI special business Io be considered
aI Ihe neeIing. A copy oI Ihe NoIice will be available on Ihe
Conpany's websiIe aI www.itvp|c.com.
By order oI Ihe Board
K9C4/R 72424C
Conpany SecreIary
27 lebruary 2013
lTV plc
The london Television CenIre
Upper Ground
london
SL1 9lT
PegisIered nunber 4967001
M,3*$ 5"6*$/#/+* #/% 7,#,<,"$C ()-+:"-<$*- +"/,)/<*%
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The DirecIors are responsible Ior preparing Ihe Annual
PeporI and Ihe Group and parenI conpany Inancial
sIaIenenIs in accordance wiIh applicable law and
regulaIions.
Conpany law requires Ihe DirecIors Io prepare Group and
parenI conpany Inancial sIaIenenIs Ior each Inancial
year. Under IhaI law Ihey are required Io prepare Ihe Group
Inancial sIaIenenIs in accordance wiIh llPSs as adopIed by
Ihe LU and applicable law and have elecIed Io prepare Ihe
parenI conpany Inancial sIaIenenIs in accordance wiIh
UK AccounIing SIandards and applicable law (UK Generally
AccepIed AccounIing lracIice).
Under conpany law Ihe DirecIors nusI noI approve Ihe
Inancial sIaIenenIs unless Ihey are saIisIed IhaI Ihey give
a Irue and Iair view oI Ihe sIaIe oI aIIairs oI Ihe Group and
parenI conpany and oI Iheir proII or loss Ior IhaI period. ln
preparing each oI Ihe Group and parenI conpany Inancial
sIaIenenIs, Ihe DirecIors are required Io.
- selecI suiIable accounIing policies and Ihen apply Ihen
consisIenIly,
- nake judgenenIs and esIinaIes IhaI are reasonable and
prudenI,
- Ior Ihe Group Inancial sIaIenenIs, sIaIe wheIher Ihey
have been prepared in accordance wiIh llPSs as adopIed
by Ihe LU,
- Ior Ihe parenI conpany Inancial sIaIenenIs, sIaIe
wheIher applicable UK AccounIing SIandards have
been Iollowed, subjecI Io any naIerial deparIures
disclosed and explained in Ihe parenI conpany Inancial
sIaIenenIs, and
- prepare Ihe Inancial sIaIenenIs on Ihe going concern
basis unless iI is inappropriaIe Io presune IhaI Ihe Group
and Ihe parenI conpany will conIinue in business.
The DirecIors are responsible Ior keeping adequaIe
accounIing records IhaI are suIIcienI Io show and explain
Ihe parenI conpany's IransacIions and disclose wiIh
reasonable accuracy aI any Iine Ihe Inancial posiIion oI
Ihe parenI conpany and enable Ihen Io ensure IhaI iIs
Inancial sIaIenenIs conply wiIh Ihe Conpanies AcI 2006.
They have general responsibiliIy Ior Iaking such sIeps
as are reasonably open Io Ihen Io saIeguard Ihe asseIs
oI Ihe Group and Io prevenI and deIecI Iraud and oIher
irregulariIies.
Under applicable law and regulaIions, Ihe DirecIors are also
responsible Ior preparing a DirecIors' PeporI, PenuneraIion
PeporI and CorporaIe Governance SIaIenenI IhaI conply
wiIh IhaI law and Ihose regulaIions.
The DirecIors are responsible Ior Ihe nainIenance and
inIegriIy oI Ihe corporaIe and Inancial inIornaIion included
on Ihe Conpany's websiIe. legislaIion in Ihe UK governing
Ihe preparaIion and disseninaIion oI Inancial sIaIenenIs
nay diIIer Iron legislaIion in oIher jurisdicIions.
Lach oI Ihe DirecIors, Ihe nanes oI whon are seI ouI on
pages 58 and 59, conIrns IhaI Io Ihe besI oI his or her
knowledge.
- Ihe Inancial sIaIenenIs, prepared in accordance wiIh Ihe
applicable seI oI accounIing sIandards, give a Irue and
Iair view oI Ihe asseIs and liabiliIies, Inancial posiIion and
Ihe proII or loss oI Ihe Conpany and Ihe underIakings
included in Ihe consolidaIion Iaken as a whole, and
- Ihe DirecIors' PeporI includes a review oI Ihe
developnenI and perIornance oI Ihe business and
Ihe posiIion oI Ihe issue and Ihe underIakings included
in Ihe consolidaIion Iaken as a whole, IogeIher wiIh a
descripIion oI Ihe principal risks and uncerIainIies IhaI
Ihey Iace.
By order oI Ihe Board
K9C4/R 72424C
Conpany SecreIary
27 lebruary 2013
7,#,*1*/, "' ()$*+,"$-4 E*-8"/-)=):),)*- )/ E*-8*+, "'
,3* D//<#: E*8"$, #/% N)/#/+)#: 7,#,*1*/,-
!!"#$%"& ##(#!(!"#! )*++, -.+
/*!"#!012345606+7
!"#$% $#'() *+,
!"#$# &' ()$$ *+#,$-./0-123 *2)$4+2,
Pictured:
The Chase
!!"#$%"& ##(#!(!"#! )*++, -.+
/*!"#!012345606+7
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!!"#$%"& ##(#!(!"#! )*++, -.+
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/'0!0,'!+ 2(!(3.30(4
We have audiIed Ihe Group and larenI Conpany Iinancial
sIaIenenIs oI lTV plc Ior Ihe year ended 31 Decenber 2012
seI ouI on pages 96 Io 156.
The Iinancial reporIing Iranework IhaI has been applied
in Ihe preparaIion oI Ihe Group Iinancial sIaIenenIs
is applicable law and lnIernaIional linancial PeporIing
SIandards (llPSs) as adopIed by Ihe LU. The Iinancial
reporIing Iranework IhaI has been applied in Ihe
preparaIion oI Ihe larenI Conpany Iinancial sIaIenenIs is
applicable law and UK AccounIing SIandards (UK Generally
AccepIed AccounIing lracIice).
This reporI is nade solely Io Ihe Conpany's nenbers,
as a body, in accordance wiIh ChapIer 3 oI larI 16 oI Ihe
Conpanies AcI 2006. Our audiI work has been underIaken
so IhaI we nighI sIaIe Io Ihe Conpany's nenbers Ihose
naIIers we are required Io sIaIe Io Ihen in an audiIor's
reporI and Ior no oIher purpose. To Ihe IullesI exIenI
perniIIed by law, we do noI accepI or assune responsibiliIy
Io anyone oIher Ihan Ihe Conpany and Ihe Conpany's
nenbers, as a body, Ior our audiI work, Ior Ihis reporI, or Ior
Ihe opinions we have Iorned.
12,=27$5>2 +2,=#6,5&585$52, #? @5+27$#+, )6A
)4A5$#+
As explained nore Iully in Ihe SIaIenenI oI DirecIors'
PesponsibiliIies seI ouI on page 91, Ihe DirecIors are
responsible Ior Ihe preparaIion oI Ihe Iinancial sIaIenenIs
and Ior being saIisIied IhaI Ihey give a Irue and Iair view.
Our responsibiliIy is Io audiI, and express an opinion on, Ihe
Iinancial sIaIenenIs in accordance wiIh applicable law and
lnIernaIional SIandards on AudiIing (UK and lreland). Those
sIandards require us Io conply wiIh Ihe AudiIing lracIices
Board's (AlB's) LIhical SIandards Ior AudiIors.
97#=2 #? $"2 )4A5$ #? $"2 ?56)675)8 ,$)$2:26$,
A descripIion oI Ihe scope oI an audiI oI Iinancial
sIaIenenIs is provided on Ihe AlB's websiIe aI www.Irc.org.
uk/audiIscopeukprivaIe.
B=565#6 #6 ?56)675)8 ,$)$2:26$,
.6 #4+ #=565#6C
- Ihe Iinancial sIaIenenIs give a Irue and Iair view oI Ihe
sIaIe oI Ihe Group's and oI Ihe larenI Conpany's aIIairs
as aI 31 Decenber 2012 and oI Ihe Group's proIiI Ior Ihe
year Ihen ended,
- Ihe Group Iinancial sIaIenenIs have been properly
prepared in accordance wiIh llPSs as adopIed by Ihe LU,
- Ihe larenI Conpany Iinancial sIaIenenIs have been
properly prepared in accordance wiIh UK Generally
AccepIed AccounIing lracIice,
- Ihe Iinancial sIaIenenIs have been prepared in
accordance wiIh Ihe requirenenIs oI Ihe Conpanies AcI
2006, and, as regards Ihe Group Iinancial sIaIenenIs,
ArIicle 4 oI Ihe lAS PegulaIion.
B=565#6 #6 #$"2+ :)$$2+, =+2,7+5&2A &' $"2
D#:=)652, E7$ FGGH
.6 #4+ #=565#6C
- Ihe parI oI Ihe DirecIors' PenuneraIion PeporI Io be
audiIed has been properly prepared in accordance wiIh
Ihe Conpanies AcI 2006, and
- Ihe inIornaIion given in Ihe DirecIors' PeporI Ior Ihe
Iinancial year Ior which Ihe Iinancial sIaIenenIs are
prepared is consisIenI wiIh Ihe Iinancial sIaIenenIs.
()$$2+, #6 I"57" I2 )+2 +2J45+2A $# +2=#+$ &'
2372=$5#6
We have noIhing Io reporI in respecI oI Ihe Iollowing.
Under Ihe Conpanies AcI 2006 we are required Io reporI Io
you iI, in our opinion.
- adequaIe accounIing records have noI been kepI by Ihe
larenI Conpany, or reIurns adequaIe Ior our audiI have
noI been received Iron branches noI visiIed by us, or
- Ihe larenI Conpany Iinancial sIaIenenIs and Ihe parI oI
Ihe DirecIors' PenuneraIion PeporI Io be audiIed are noI
in agreenenI wiIh Ihe accounIing records and reIurns, or
- cerIain disclosures oI DirecIors' renuneraIion speciIied by
law are noI nade, or
- we have noI received all Ihe inIornaIion and explanaIions
we require Ior our audiI.
Under Ihe lisIing Pules we are required Io review.
- Ihe DirecIors' sIaIenenI, seI ouI on page 102, in relaIion
Io going concern,
- Ihe parI oI Ihe CorporaIe Governance SIaIenenI relaIing
Io Ihe Conpany's conpliance wiIh Ihe nine provisions
oI Ihe UK CorporaIe Governance Code speciIied Ior our
review, and
- cerIain elenenIs oI Ihe reporI Io shareholders by Ihe
Board on DirecIors' renuneraIion.
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Ior and on behalI oI KlMG AudiI llc, SIaIuIory AudiIor
CharIered AccounIanIs
15 Canada Square
london, L14 5Gl
27 lebruary 2013
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In this section . . .
The Iinancial sIaIenenIs have been presenIed in a sIyle which aIIenpIs Io nake Ihen less conplex and nore
relevanI Io shareholders. We have grouped noIes in secIions under Iive headings. 'Basis oI lreparaIion', 'PesulIs Ior Ihe
Year', 'OperaIing AsseIs and liabiliIies', 'CapiIal SIrucIure and linancing CosIs' and 'OIher NoIes'. Lach secIion seIs ouI
Ihe accounIing policies applied in producing Ihese noIes IogeIher wiIh any key judgenenIs and esIinaIes used. The
purpose oI Ihis IornaI is Io provide readers wiIh a clearer undersIanding oI whaI drives Iinancial perIornance oI Ihe
Group. TexI in boxes provides connenIary on each secIion in plain Lnglish.
Keeping it simp|e . . .
NoIes Io Ihe Iinancial sIaIenenIs provide addiIional inIornaIion required by sIaIuIe, accounIing sIandards or lisIing
Pules Io explain a parIicular IeaIure oI Ihe Iinancial sIaIenenIs. The noIes which Iollow will also provide explanaIions
and addiIional disclosure Io assisI readers' undersIanding and inIerpreIaIion oI Ihe annual reporI and Ihe Iinancial
sIaIenenIs.
D#6$26$, lage
Primary statements
ConsolidaIed lncone SIaIenenI 96
ConsolidaIed SIaIenenI oI Conprehensive lncone 97
ConsolidaIed SIaIenenI oI linancial losiIion 98
ConsolidaIed SIaIenenI oI Changes in LquiIy 99
ConsolidaIed SIaIenenI oI Cash llows 101
5ection 1 - Basis of Preparation 102
5ection 2 - Pesu|ts for the Year 107
2.1 lroIiI beIore Iax 107
2.2 LxcepIional iIens 110
2.3 TaxaIion 110
2.4 Larnings per share 113
5ection 3 - Cperating Assets and Liabi|ities 115
3.1 Working capiIal 115
3.2 lroperIy, planI and equipnenI 118
3.3 lnIangible asseIs 120
3.4 AcquisiIions 125
3.5 AsseIs held Ior sale and disposals 127
3.6 lrovisions 128
3.7 lensions 129
5ection 4 - Capita| 5tructure and Financing Costs 136
4.1 NeI cash/(debI) 136
4.2 Borrowings and held Io naIuriIy invesInenIs 138
4.3 DerivaIive Iinancial insIrunenIs 140
4.4 NeI Iinancing cosIs 142
4.5 linancial risk IacIors 143
4.6 lair value hierarchy 145
4.7 LquiIy 146
5ection 5 - Cther Notes 150
5.1 PelaIed parIy IransacIions 150
5.2 ConIingenI liabiliIies 151
5.3 SubsequenI evenIs 151
ITV p|c Company Financia| 5tatements 152
5hareho|der information 157
Financia| Pecord 160
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lor Ihe year ended 31 Decenber NoIe
2012
m
2011
n
Pevenue 2.1 2,196 2,140
OperaIing cosIs (1,743) (1,736)
Cperating profit 453 404
lresenIed as.
Earnings before interest, tax, amortisation (EBITA) before exceptiona| items 2.1 520 462
OperaIing excepIional iIens 2.2 (7) 1
AnorIisaIion and inpairnenI oI inIangible asseIs 3.3 (60) (59)
Cperating profit 453 404
linancing incone 4.4 151 196
linancing cosIs 4.4 (250) (271)
Net financing costs 4.4 (99) (75)
Share oI losses oI joinI venIures and associaIed underIakings 2.1 (1) (2)
loss on sale and inpairnenI oI non-currenI asseIs (excepIional iIens) 2.2 (6) (3)
Gain on sale and inpairnenI oI subsidiaries and invesInenIs (excepIional iIens) 2.2 1 3
Profit before tax 34S 327
TaxaIion 2.3 (S0) (79)
Profit for the year 26S 248
Profit attributab|e to:
Owners oI Ihe Conpany 267 247
Non-conIrolling inIeresIs 1 1
Profit for the year 26S 248
Earnings per share
Basic earnings per share 2.4 6.9p 6.4p
DiluIed earnings per share 2.4 6.7p 6.2p
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lor Ihe year ended 31 Decenber
2012
m
2011
n
Profit for the year 26S 248
Cther comprehensive income:
Lxchange diIIerences on IranslaIion oI Ioreign operaIions (1)
PevaluaIion oI available Ior sale Iinancial asseIs (1) 3
AcIuarial losses on deIined beneIiI pension schenes (227) (124)
lncone Iax crediI on oIher conprehensive incone 53 30
Cther comprehensive cost for the year, net of income tax (176) (91)
Tota| comprehensive income for the year 92 157
Tota| comprehensive income attributab|e to:
Owners oI Ihe Conpany 91 156
Non-conIrolling inIeresIs 1 1
Tota| comprehensive income for the year 92 157
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As aI 31 Decenber NoIe
2012
m
2011
n
Non-current assets
lroperIy, planI and equipnenI 3.2 156 167
lnIangible asseIs 3.3 932 934
lnvesInenIs in joinI venIures and associaIed underIakings 6 3
Available Ior sale Iinancial asseIs 3 2
leld Io naIuriIy invesInenIs 4.1 145 147
DerivaIive Iinancial insIrunenIs 4.3 99 110
DisIribuIion righIs 3.1.1 17 11
NeI deIerred Iax asseI 2.3 93 65
1,451 1,439
Current assets
lrogranne righIs and oIher invenIory 3.1.2 250 285
Trade and oIher receivables due wiIhin one year 3.1.4 365 370
Trade receivables due aIIer nore Ihan one year 3.1.4 14 26
Trade and oIher receivables 379 396
Cash and cash equivalenIs 4.1 690 801
1,319 1,482
AsseIs held Ior sale 3.5 25
1,344 1,482
Current |iabi|ities
Borrowings 4.2 (7) (9)
DerivaIive Iinancial insIrunenIs 4.3 (1) (1)
Trade and oIher payables due wiIhin one year 3.1.5 (614) (639)
Trade payables due aIIer nore Ihan one year 3.1.6 (30) (45)
Trade and oIher payables (644) (684)
CurrenI Iax liabiliIies (29) (36)
lrovisions 3.6 (25) (24)
(706) (754)
Net current assets 63S 728
Non-current |iabi|ities
Borrowings 4.2 (632) (912)
DerivaIive Iinancial insIrunenIs 4.3 (4S) (44)
DeIined beneIiI pension deIiciI 3.7 (551) (390)
OIher payables (14) (3)
lrovisions 3.6 (12) (9)
(1,257) (1,358)
Net assets S32 809
Attributab|e to equity shareho|ders of the parent company
Share capiIal 4.7.1 391 389
Share preniun 4.7.1 122 120
Merger and oIher reserves 4.7.2 2S3 300
TranslaIion reserve 13 14
Available Ior sale reserve 7 8
PeIained earnings/(losses) 1 (25)
Tota| equity attributab|e to equity shareho|ders of the parent company S17 806
Non-conIrolling inIeresIs 15 3
Tota| equity S32 809
.)6 Q+5??5$",
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AIIribuIable Io equiIy shareholders oI Ihe parenI conpany
lIens IhaI nay be
reclassiIied Io proIiI
or loss
NoIe
Share
capiIal
n
Share
preniun
n
Merger
and oIher
reserves
n
TranslaIion
reserve
n
Available
Ior sale
reserve
n
PeIained
(losses)/
proIiIs
n
ToIal
n
Non
conIrolling
inIeresIs
n
ToIal
equiIy
n
Balance aI 1 January 2012 3S9 120 300 14 S (25) S06 3 S09
Tota| comprehensive income for the year
lroIiI 267 267 1 26S
Cther comprehensive incomel(cost)
PevaluaIion oI available Ior sale Iinancial
asseIs (1) (1) (1)
Lxchange diIIerences on IranslaIion oI
Ioreign operaIions (1) (1) (1)
AcIuarial losses on deIined beneIiI
pension schenes 3.7 (227) (227) (227)
lncone Iax on oIher conprehensive incone 2.3 53 53 53
ToIal oIher conprehensive cosI (1) (1) (174) (176) (176)
Tota| comprehensive income for the year - - - (1) (1) 93 91 1 92
Transactions with owners, recorded
direct|y in equity
Contributions by and distributions
to owners
LquiIy dividends (78) (78) (1) (79)
LquiIy porIion oI Ihe converIible bond 4.1 (5) 5 -
MovenenIs due Io sharebased
conpensaIion 4.7.7 9 9 9
lurchase oI own shares via enployees'
beneIiI IrusI

4.7.7 (3) (3) (3)
lssue oI new shares 4.7.1 2 2 4 4
ToIal conIribuIions by and disIribuIions
Io owners 2 2 (5) (67) (68) (1) (69)
Change in ownership interest in
subsidiaries that do not resu|t in a |oss
of contro|
ToIal changes in ownership inIeresIs
in subsidiaries -
Tota| transactions with owners 2 2 (5) - - (67) (6S) (1) (69)
Changes in nonconIrolling inIeresIs
(a)
3.4 (12) (12) 12 -
Ba|ance at 31 December 2012 4.7 391 122 2S3 13 7 1 S17 15 S32
(a)
MovenenIs reporIed in nerger and oIher reserves include a puI opIion Ior Ihe acquisiIion oI nonconIrolling inIeresIs.
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AIIribuIable Io equiIy shareholders oI Ihe parenI conpany
lIens IhaI nay be
reclassiIied Io proIiI
or loss
NoIe
Share
capiIal
n
Share
preniun
n
Merger
and oIher
reserves
n
TranslaIion
reserve
n
Available
Ior sale
reserve
n
PeIained
losses
n
ToIal
n
Non-
conIrolling
inIeresIs
n
ToIal
equiIy
n
Balance aI 1 January 2011 3S9 120 304 14 5 (171) 661 2 663
Tota| comprehensive income for the year
lroIiI 247 247 1 24S
Cther comprehensive incomel(cost)
PevaluaIion oI available Ior sale Iinancial
asseIs 3 3 3
AcIuarial losses on deIined beneIiI
pension schenes 3.7 (124) (124) (124)
lncone Iax on oIher conprehensive incone 2.3 30 30 30
ToIal oIher conprehensive incone/(cosI) 3 (94) (91) (91)
Tota| comprehensive income for the year - - - - 3 153 156 1 157
Transactions with owners, recorded
direct|y in equity
Contributions by and distributions to
owners
LquiIy dividends (16) (16) (16)
LquiIy porIion oI Ihe converIible bond 4.1 (4) 4 -
MovenenIs due Io share-based
conpensaIion 4.7.7 11 11 11
lurchase oI own shares via enployees'
beneIiI IrusI 4.7.7 (6) (6) (6)
ToIal conIribuIions by and disIribuIions Io
owners (4) (7) (11) (11)
Change in ownership interest in
subsidiaries that do not resu|t in a |oss
of contro|
ToIal changes in ownership inIeresIs in
subsidiaries -
ToIal IransacIions wiIh owners (4) (7) (11) (11)
Ba|ance at 31 December 2011 4.7 3S9 120 300 14 S (25) S06 3 S09
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lor Ihe year ended 31 Decenber NoIe m
2012
m n
2011
n
Cash f|ows from operating activities
lroIiI beIore Iax 34S 327
Gain on sale and inpairnenI oI subsidiaries and invesInenIs
(excepIional iIens) 2.2 (1) (3)
loss on sale and inpairnenI oI noncurrenI asseIs (excepIional iIens) 2.2 6 3
Share oI losses oI joinI venIures and associaIed underIakings 2.1 1 2
NeI Iinancing cosIs 4.4 99 75
OperaIing excepIional iIens 2.2 7 (1)
DepreciaIion oI properIy, planI and equipnenI 3.2 27 26
AnorIisaIion and inpairnenI oI inIangible asseIs 3.3 60 59
Sharebased conpensaIion 4.7.7 9 11
Decrease in progranne righIs and oIher invenIory,
and disIribuIion righIs 29
Decrease in receivables 17 52
Decrease in payables (45) (34)
MovenenI in working capiIal 3.1.7 1 18
Cash generaIed Iron operaIions beIore excepIional iIens 557 517
Cash Ilow relaIing Io operaIing excepIional iIens.
NeI operaIing (loss)/ incone 2.2 (7) 1
lncrease/(decrease) in payables and provisions 5 (5)
Cash ouIIlow Iron excepIional iIens (2) (4)
Cash generaIed Iron operaIions 555 513
DeIined beneIiI pension deIiciI Iunding (72) (48)
lnIeresI received 42 48
lnIeresI paid on bank and oIher loans (72) (85)
lnIeresI paid on Iinance leases (3) (3)
NeI IaxaIion paid (62) (68)
(167) (156)
Net cash inf|ow from operating activities 3SS 357
Cash f|ows from investing activities
AcquisiIion oI subsidiary underIakings, neI oI cash and cash equivalenIs
acquired and debI repaid on acquisiIion 3.4 (3S) (14)
lroceeds Iron sale oI properIy, planI and equipnenI - 2
AcquisiIion oI properIy, planI and equipnenI (50) (35)
AcquisiIion oI inIangible asseIs (11) (8)
loans granIed Io associaIes and joinI venIures (9) (6)
loans repaid by associaIes and joinI venIures 3 2
lroceeds Iron sale oI subsidiaries, joinI venIures and available
Ior sale invesInenIs 4 2
Net cash (outf|ow)linf|ow from investing activities (101) (57)
Cash f|ows from financing activities
Bank and oIher loans anounIs repaid (309) (331)
CapiIal elenenI oI Iinance lease paynenIs (S) (5)
Dividend paid Io ninoriIy inIeresI (1)
lssue oI share capiIal 4
lurchase oI own shares via enployees' beneIiI IrusI (3) (6)
LquiIy dividends paid (7S) (16)
Net cash outf|ow from financing activities (395) (358)
Net (decrease)lincrease in cash and cash equiva|ents (10S) (58)
Cash and cash equiva|ents at 1 January 4.1 S01 860
LIIecIs oI exchange raIe changes and Iair value novenenIs (3) (1)
Cash and cash equiva|ents at 31 December 4.1 690 801
:+".+7*#9&$# ;&9&$2$"& +4 :9.0 =7+C.
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/'0!0,'!+ 2(!(3.30(4
The Iinancial sIaIenenIs consolidaIe Ihose oI lTV plc ('Ihe
Conpany') and iIs subsidiaries (IogeIher reIerred Io as 'Ihe
Group') and include Ihe Group's inIeresIs in associaIes and
joinIly conIrolled enIiIies. The Conpany is doniciled in Ihe
UniIed Kingdon.
As required by LU law (lAS PegulaIion LC 1606/2002) Ihe
Group's accounIs have been prepared in accordance wiIh
lnIernaIional linancial PeporIing SIandards as adopIed by
Ihe LU ('llPS'), and approved by Ihe DirecIors.
The Iinancial sIaIenenIs are principally prepared on Ihe
basis oI hisIorical cosI. Where oIher bases are applied Ihese
are idenIiIied in Ihe relevanI accounIing policy.
The Conpany has elecIed Io prepare iIs parenI conpany
Iinancial sIaIenenIs in accordance wiIh UK GAAl.
D+*"? 8+"8$,"
As a resulI oI Ihe Group's conIinued generaIion oI signiIicanI
Iree cash Ilows Ihrough eIIiciencies in Ihe balance sheeI Ihe
Group conIinued Io inprove iIs posiIive neI cash posiIion,
and has also conIinued Io inprove boIh iIs shorI-Iern and
nediun-Iern liquidiIy posiIion (see SecIion 4 Ior deIails on
capiIal sIrucIure and Iinancing).
The Group conIinues Io review IorecasIs oI Ihe Ielevision
adverIising narkeI Io deIernine Ihe inpacI on lTV's liquidiIy
posiIion and creaIe IurIher cash headroon. The Group's
IorecasIs and projecIions, Iaking accounI oI reasonably
possible changes in Irading perIornance, show IhaI Ihe
Group will be able Io operaIe wiIhin Ihe level oI iIs currenI
Iunding.
AIIer naking enquiries, Ihe DirecIors have a reasonable
expecIaIion IhaI Ihe Group has adequaIe resources Io
conIinue in operaIional exisIence Ior Ihe Ioreseeable IuIure.
Accordingly, Ihe Group conIinues Io adopI Ihe going concern
basis in preparing iIs consolidaIed Iinancial sIaIenenIs.
;)3.*#*9,*$.E F+*"& <$"&),$.E 9..+8*9&$. 9"#
.%$8*97 %),%+.$ $"&*&*$.
Subsidiaries are enIiIies IhaI are direcIly or indirecIly
conIrolled by Ihe Group. ConIrol exisIs where Ihe Group has
Ihe power Io govern Ihe Iinancial and operaIing policies oI
Ihe enIiIy in order Io obIain beneIiIs Iron iIs acIiviIies. ln
assessing conIrol, poIenIial voIing righIs IhaI are currenIly
exercisable or converIible are Iaken inIo accounI.
A joinI venIure is an enIiIy in which Ihe Group holds an
inIeresI under a conIracIual arrangenenI where Ihe Group
and one or nore oIher parIies underIake an econonic
acIiviIy IhaI is subjecI Io joinI conIrol. The Group accounIs
Ior iIs inIeresIs in joinI venIures using Ihe equiIy neIhod.
Under Ihe equiIy neIhod Ihe invesInenI in Ihe enIiIy is
sIaIed as one line iIen aI cosI plus Ihe invesIor's share oI
reIained posI-acquisiIion proIiIs and oIher changes in neI
asseIs.
An associaIe is an enIiIy, oIher Ihan a subsidiary or joinI
venIure, over which Ihe Group has signiIicanI inIluence.
SigniIicanI inIluence is Ihe power Io parIicipaIe in, buI
noI conIrol or joinIly conIrol, Ihe Iinancial and operaIing
decisions oI an enIiIy. These invesInenIs are also accounIed
Ior using Ihe equiIy neIhod.
A special purpose enIiIy (SlL) is a legal enIiIy which
Ihe Group nay esIablish Io IulIil a speciIic Irading
and invesInenI purpose. JudgenenI is required when
deIernining iI an SlL should be consolidaIed and involves
Ihe evaluaIion oI Ihe subsIance oI iIs relaIionships wiIh
Ihe Group and Ihe SlL's risks and rewards. Those SlLs
conIrolled by Ihe Group are esIablished under Ierns IhaI
inpose sIricI liniIaIions on Ihe decision-naking powers oI
Iheir nanagenenI and IhaI resulI in Ihe Group receiving Ihe
najoriIy oI Ihe beneIiIs relaIed Io Iheir operaIions and neI
asseIs, being exposed Io Ihe najoriIy oI risks incidenIal Io
Iheir acIiviIies and receiving Ihe najoriIy oI Ihe residual or
ownership risks relaIed Io Ihe SlLs or Iheir asseIs.
In this section . . .
This secIion seIs ouI Ihe Group's accounIing policies IhaI relaIe Io Ihe Iinancial sIaIenenIs as a whole. Where an
accounIing policy is speciIic Io one noIe, Ihe policy is described in Ihe noIe Io which iI relaIes. This secIion also shows
new LU endorsed accounIing sIandards, anendnenIs and inIerpreIaIions, wheIher Ihese are eIIecIive in 2012 or laIer
years. We explain how Ihese changes are expecIed Io inpacI Ihe Iinancial posiIion and perIornance oI Ihe Group.
;$8&*+" GH I9.*. +4 >,$%9,9&*+"
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CurrenI asseIs include asseIs held prinarily Ior Irading
purposes, cash and cash equivalenIs, and asseIs expecIed
Io be realised in, or inIended Ior sale or use in, Ihe course oI
Ihe Group's operaIing cycle. All oIher asseIs are classiIied as
non-currenI asseIs.
CurrenI liabiliIies include liabiliIies held prinarily Ior Irading
purposes, liabiliIies expecIed Io be seIIled in Ihe course oI
Ihe Group's operaIing cycle and Ihose liabiliIies due wiIhin
one year Iron Ihe reporIing daIe. All oIher liabiliIies are
classiIied as non-currenI liabiliIies.
:79..*4*89&*+" +4 4*"9"8*97 *".&,)2$"&.
The Iinancial asseIs and liabiliIies oI Ihe Group are classiIied
inIo Ihe Iollowing Iinancial sIaIenenI capIions in Ihe
sIaIenenI oI Iinancial posiIion in accordance wiIh lAS 39.
Iinancial insIrunenIs.
- 'loans and receivables' separaIely disclosed as cash and
cash equivalenIs (excluding gilIs over which unIunded
pension conniInenIs have a charge) and Irade and
oIher receivables,
- 'Available Ior sale Inancial asseIs' neasured aI Iair value
Ihrough oIher conprehensive incone. lncludes gilIs over
which unIunded pension conniInenIs have a charge
and equiIy securiIies IhaI do noI neeI Ihe deIniIion oI
subsidiaries, joinI venIures or associaIes,
- 'leld Io naIuriIy invesInenIs',
- 'linancial asseIs/liabiliIies aI Iair value Ihrough proII
or loss' separaIely disclosed as derivaIive Inancial
insIrunenIs in asseIs/liabiliIies, and
- 'linancial liabiliIies neasured aI anorIised cosI'
separaIely disclosed as borrowings and Irade and oIher
payables.
JudgenenI is required when deIernining Ihe appropriaIe
classiIicaIion oI Ihe Group's Iinancial insIrunenIs. DeIails
on Ihe accounIing policies Ior neasurenenI oI Ihe above
insIrunenIs are seI ouI in Ihe relevanI noIe.
/$8+?"*&*+" 9"# #$,$8+?"*&*+" +4 4*"9"8*97 9..$&. 9"#
7*93*7*&*$.
The Group recognises a Iinancial asseI or liabiliIy when iI
becones a parIy Io Ihe conIracI. linancial insIrunenIs are
no longer recognised in Ihe sIaIenenI oI Iinancial posiIion
when Ihe conIracIual cash Ilows expire or when Ihe Group
no longer reIains conIrol oI subsIanIially all Ihe risks and
rewards under Ihe insIrunenI.
:9.0 9"# 89.0 $A)*<97$"&.
Cash and cash equivalenIs conprise cash balances, call
deposiIs wiIh naIuriIy oI less Ihan or equal Io Ihree nonIhs
Iron Ihe daIe oI acquisiIion, cash held Io neeI cerIain
Iinance lease conniInenIs and gilIs over which unIunded
pension conniInenIs have a charge. The carrying value oI
cash and cash equivalenIs is considered Io approxinaIe Iair
value.
=+,$*?" 8),,$"8*$.
The prinary econonic environnenI in which Ihe Group
operaIes is Ihe UK. The consolidaIed Iinancial sIaIenenIs
are IhereIore presenIed in pounds sIerling ('').
Where Group conpanies based in Ihe UK IransacI in Ioreign
currencies, Ihese IransacIions are IranslaIed inIo pounds
sIerling aI Ihe exchange raIe on IhaI day. loreign currency
noneIary asseIs and liabiliIies are IranslaIed inIo pounds
sIerling aI Ihe year end exchange raIe. Where Ihere is a
novenenI in Ihe exchange raIe beIween Ihe daIe oI Ihe
IransacIion and Ihe year end, a Ioreign exchange gain or loss
nay arise. Any such diIIerences are recognised in Ihe incone
sIaIenenI. Non-noneIary asseIs and liabiliIies neasured
aI hisIorical cosI are IranslaIed inIo pounds sIerling aI Ihe
exchange raIe on Ihe daIe oI Ihe IransacIion.
The asseIs and liabiliIies oI Group conpanies ouIside oI
Ihe UK are IranslaIed inIo pounds sIerling aI Ihe year
end exchange raIe. The revenues and expenses oI Ihese
conpanies are IranslaIed inIo pounds sIerling aI Ihe
average nonIhly exchange raIe during Ihe year. Where
diIIerences arise beIween Ihese raIes, Ihey are recognised
in Ihe IranslaIion reserve wiIhin equiIy and oIher
conprehensive incone.
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
RG<
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
Lxchange diIIerences arising on Ihe IranslaIion oI Ihe
Group's inIeresIs in joinI venIures and associaIes are
recognised in Ihe IranslaIion reserve wiIhin equiIy and oIher
conprehensive incone.
ln respecI oI all Group conpanies ouIside oI Ihe UK only
Ihose IranslaIion diIIerences arising since 1 January 2004,
Ihe daIe oI IransiIion Io llPS, are presenIed as a separaIe
conponenI oI equiIy. On disposal oI an inIeresI in a joinI
venIure or an associaIe, Ihe relaIed IranslaIion reserve is
released Io Ihe incone sIaIenenI as parI oI Ihe gain or loss
on disposal.
(88+)"&*"? F)#?$2$"&. 9"# $.&*29&$.
The preparaIion oI Iinancial sIaIenenIs requires
nanagenenI Io exercise judgenenI in applying Ihe Group's
accounIing policies. lI also requires Ihe use oI esIinaIes and
assunpIions IhaI aIIecI Ihe reporIed anounIs oI asseIs,
liabiliIies, incone and expenses. AcIual resulIs nay diIIer
Iron Ihese esIinaIes.
LsIinaIes and underlying assunpIions are reviewed on an
ongoing basis, wiIh revisions recognised in Ihe period in
which Ihe esIinaIes are revised and in any IuIure periods
aIIecIed.
The areas involving a higher degree oI judgenenI or
conplexiIy are seI ouI below and in nore deIail in Ihe
relaIed noIes.
- Pevenue recogniIion (noIe 2.1)
- ClassiIcaIion oI Inancial insIrunenIs (included in
Ihis noIe)
- AcquisiIion accounIing (noIe 3.3 and noIe 3.4)
- ConsolidaIion oI special purpose enIiIies ('SlL's) (included
in Ihis noIe)
The areas involving Ihe nosI sensiIive esIinaIes and
assunpIions IhaI are signiIicanI Io Ihe Iinancial sIaIenenIs
are seI ouI below and in nore deIail in Ihe relaIed noIes.
- DeIned beneII pension schenes (noIe 3.7)
- TaxaIion (noIe 2.3)
- lrovisions (noIe 3.6)
- Lnployee beneIIs (noIe 4.7)
- Business conbinaIions (noIe 3.4)
- lnIangible asseIs (noIe 3.3)
- lnpairnenI oI asseIs (noIe 3.2 and noIe 3.3)
- lrogranne righIs and oIher invenIory (noIe 3.1)
- DisIribuIion righIs (noIe 3.1)
- Trade receivables (noIe 3.1)
;$8&*+" GH I9.*. +4 >,$%9,9&*+" 8+"&*")$#
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The Iable below represenIs new or anended LU endorsed accounIing sIandards relevanI Io Ihe Group's resulIs IhaI are
eIIecIive in 2012.
AccounIing SIandard PequirenenI lnpacI on Iinancial sIaIenenIs
lAS 12 lncone Iaxes The AnendnenI inIroduces an excepIion Io Ihe currenI
neasurenenI principles oI deIerred Iax asseIs and
liabiliIies arising Iron invesInenI properIy neasured
using Ihe Iair value nodel in accordance wiIh lAS
40 lnvesInenI lroperIy. The excepIion also applies
Io invesInenI properIies acquired in a business
conbinaIion accounIed Ior in accordance wiIh llPS
3 Business ConbinaIions provided Ihe acquirer
subsequenIly neasure Ihese asseIs applying Ihe Iair
value nodel.
The Group does noI consider Ihe anendnenI Io lAS 12
Io be applicable Io Ihe Iinancial sIaIenenIs Ior Ihe year
ended on Ihe basis IhaI Ihe Group does noI own, nor has
acquired, invesInenI properIies during Ihe period.
The DirecIors also considered Ihe inpacI on Ihe Group oI oIher new and revised accounIing sIandards, inIerpreIaIions
or anendnenIs on Ihe Group IhaI are currenIly endorsed buI noI yeI eIIecIive. LxcepI where noIed below, none are
considered relevanI Io Ihe Group's resulIs and are eIIecIive Ior periods beginning on or aIIer 1 January 2014.
AccounIing SIandard PequirenenI lnpacI on Iinancial sIaIenenIs
lAS 19 Pevised
Lnployee BeneIiIs
The lASB has issued nunerous anendnenIs Io lAS
19. These range Iron IundanenIal changes such as
renoving Ihe corridor nechanisn and Ihe concepI oI
expecIed reIurn on plan asseIs Io sinple clariIicaIions
and rewording.
The revised sIandard is eIIecIive Ior periods beginning
on or aIIer 1 January 2013, wiIh reIrospecIive
applicaIion.
The Group has reviewed Ihe anendnenIs Io lAS 19 and
does noI consider Ihere Io be any inpacI on Ihe 2012
neI asseIs.
The inpacI on Ihe incone sIaIenenI Ior 2012 would be
an increase in Iinance cosIs oI 7 nillion Io 16 nillion,
which is adjusIed Ior in calculaIing adjusIed proIiI, and
an addiIional 7 nillion in operaIing cosIs Io 15 nillion,
which will be included wiIhin LBlTA. The Iinance cosIs Ior
2013 under Ihe revised sIandard are expecIed Io be 21
nillion, and operaIing cosIs will be 13 nillion.
lAS 1 linancial
SIaIenenI
lresenIaIion
The anendnenIs Io lAS 1 change Ihe grouping oI iIens
presenIed in OCl. lIens IhaI could be reclassiIied Io
Ihe incone sIaIenenI aI a IuIure poinI in Iine would
be presenIed separaIely Iron iIens IhaI will never be
reclassiIied. The anendnenI is eIIecIive Ior periods
beginning on or aIIer 1 July 2012.
The anendnenI aIIecIs presenIaIion only and has
IhereIore no inpacI on Ihe Group's Iinancial posiIion or
perIornance.
llPS 7 linancial
lnsIrunenIs.
Disclosures
The AnendnenIs require addiIional disclosures abouI
IransIers oI Iinancial asseIs, e.g. securiIisaIions, and
should enable users Io undersIand Ihe possible eIIecIs
oI any risks IhaI nay renain wiIh Ihe IransIeror.
Also required is addiIional disclosures where a
disproporIionaIe anounI oI IransIer IransacIions Iake
place around Ihe end oI Ihe reporIing period.
The Group has reviewed Iheir disclosure oI Iinancial
insIrunenIs Io ensure Ihey are in conpliance wiIh Ihe
anendnenIs Io llPS 7.
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!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
AccounIing SIandard PequirenenI lnpacI on Iinancial sIaIenenIs
llPS 10 llPS 10 replaces a porIion oI lAS 27 ConsolidaIed and
SeparaIe linancial SIaIenenIs IhaI addresses Ihe
accounIing Ior consolidaIed Iinancial sIaIenenIs. lI
also includes Ihe issues raised in SlC-12 ConsolidaIion
Special lurpose LnIiIies.

llPS 10 esIablishes a single conIrol nodel IhaI applies
Io all enIiIies including special purpose enIiIies. The
changes inIroduced by llPS 10 will require nanagenenI
Io exercise signiIicanI judgenenI Io deIernine which
enIiIies are conIrolled and IhereIore are required
Io be consolidaIed by a parenI, conpared wiIh Ihe
requirenenIs IhaI were in lAS 27.
Based on Ihe prelininary analyses perIorned, llPS 10 is
noI expecIed Io have any inpacI on Ihe currenIly held
invesInenIs oI Ihe Group.
llPS 11 llPS 11 replaces lAS 31 lnIeresIs in JoinI VenIures and
SlC-13 JoinIly conIrolled enIiIies Non-noneIary
conIribuIions by VenIurers.

llPS 11 renoves Ihe opIion Io accounI Ior joinIly
conIrolled enIiIies (JCLs) using proporIionaIe
consolidaIion. lnsIead, JCLs IhaI neeI Ihe deIiniIion oI
a joinI venIure nusI be accounIed Ior using Ihe equiIy
neIhod.
Based on Ihe prelininary analyses perIorned, llPS 11 is
noI expecIed Io have any inpacI on Ihe currenIly held
invesInenIs oI Ihe Group.
llPS 12 llPS 12 includes all oI Ihe disclosures IhaI were
previously in lAS 27 relaIed Io consolidaIed Iinancial
sIaIenenIs, as well as all oI Ihe disclosures IhaI
were previously included in lAS 31 and lAS 28. These
disclosures relaIe Io an enIiIy's inIeresIs in subsidiaries,
joinI arrangenenIs, associaIes and sIrucIured enIiIies.
AlIhough a nunber oI new disclosures will be required,
Ihere is no inpacI expecIed on Ihe Group's Iinancial
posiIion or perIornance.
llPS 13 llPS 13 esIablishes a single source oI guidance under
llPS Ior all Iair value neasurenenIs. llPS 13 does noI
change when an enIiIy is required Io use Iair value, buI
raIher provides guidance on how Io neasure Iair value
under llPS when Iair value is required or perniIIed. The
sIandard is eIIecIive Ior periods beginning on or aIIer 1
January 2013.
The Group is currenIly assessing Ihe inpacI IhaI
Ihis sIandard will have on Ihe Iinancial posiIion and
perIornance, buI based on prelininary analyses, no
naIerial inpacI is expecIed.
;$8&*+" GH I9.*. +4 >,$%9,9&*+" 8+"&*")$#
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In this section . . .
This secIion Iocuses on Ihe resulIs and perIornance oI Ihe Group. On Ihe Iollowing pages you will Iind disclosures
explaining Ihe Group's resulIs Ior Ihe year, segnenIal inIornaIion, excepIional iIens, IaxaIion and earnings per share.
2.1 Proht before tax
Keeping it simp|e . . .
This secIion analyses Ihe Group's proIiI beIore Iax by reIerence Io Ihe acIiviIies perIorned by Ihe Group and an
analysis oI key operaIing cosIs.
Larnings beIore inIeresI, Iax, anorIisaIion (LBlTA) and beIore excepIional iIens renains Ihe Group's key proIiI
indicaIor. This reIlecIs Ihe way Ihe business is nanaged and how Ihe DirecIors assess Ihe perIornance oI Ihe Group.
E77#46$56T =#85752,
/$<$")$ ,$8+?"*&*+"
Pevenue is sIaIed exclusive oI VAT and conprises Ihe sale
oI producIs and services Io Ihird parIies. SelecIing Ihe
appropriaIe Iining and anounI oI revenue recognised
requires judgenenI. The key area oI judgenenI in respecI
oI recognising revenue is Ihe Iining oI recogniIion. Pevenue
Iron Ihe sale oI producIs is recognised when Ihe Group
has IransIerred boIh Ihe signiIicanI risks and rewards oI
ownership and conIrol oI Ihe producIs sold and Ihe anounI
oI revenue can be neasured reliably. Pevenue recogniIion
criIeria Ior Ihe Group's key classes oI revenue are recognised
on Ihe Iollowing bases.
Class oI revenue PecogniIion criIeria
AdverIising on Iransnission or display
Sponsorship on Iransnission oI Ihe sponsored
progranne or series
lrogranne producIion on delivery oI episode and
accepIance by Ihe cusIoner
lrogranne righIs when conIracIed and available Ior
exploiIaIion
larIicipaIion revenues
(inIeracIive & 'red buIIon'
services)
as Ihe service is provided
DigiIal revenue. Archive and
Video on Denand one-oII
and Iop-up conIenI
on delivery oI conIenI (one-oII)
or over Ihe conIracI period in a
nanner IhaI reIlecIs Ihe Ilow oI
conIenI delivered (Iop-up)
DigiIal revenue. CaIch-up on receipI oI Ihird parIy reporIs
showing revenue share calculaIion
(showing subscribers and hours
downloaded)
92T:26$)8 56?#+:)$5#6
OperaIing segnenIs, which have noI been aggregaIed, are
reporIed in a nanner IhaI is consisIenI wiIh Ihe inIernal
reporIing provided Io Ihe Board oI DirecIors, regarded as Ihe
chieI operaIing decision naker.
The Board oI DirecIors considers Ihe business prinarily Iron
a producI or acIiviIy perspecIive. The reporIable segnenIs
Ior Ihe years ended 31 Decenber 2012 and 31 Decenber
2011 are IhereIore 'BroadcasI & Online' and 'lTV SIudios', Ihe
resulIs oI which are ouIlined in Ihe Iollowing Iables.
Broadcast
& Cn|ine
2012
m
ITV 5tudios
2012
m
Conso|idated
2012
m
ToIal segnenI revenue 1,S34 712 2,546
lnIersegnenI revenue - (350) (350)
Pevenue Iron exIernal
cusIoners 1,S34 362 2,196
LBlTA beIore excepIional
iIens 413 107 520
Share oI losses oI joinI
venIures and associaIed
underIakings (1) - (1)
BroadcasI
& Online
2011
n
lTV SIudios
2011
n
ConsolidaIed
2011
n
ToIal segnenI revenue 1,820 612 2,432
lnIersegnenI revenue (292) (292)
Pevenue Iron exIernal
cusIoners 1,820 320 2,140
LBlTA beIore excepIional
iIens 379 83 462
Share oI losses oI joinI
venIures and associaIed
underIakings (2) (2)
lnIersegnenI revenue, which is carried ouI on arns'
lengIh Ierns, is generaIed Iron Ihe supply oI lTV SIudios
;$8&*+" NH /$.)7&. 4+, &0$ O$9,
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
RGP
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
progrannes Io BroadcasI & Online Ior Iransnission prinarily
on lTV. This revenue sIrean is a neasure which Iorns parI oI
Ihe Group's sIraIegic prioriIy oI building a sIrong inIernaIional
conIenI business and is included as a Kll.
ln preparing Ihe segnenI inIornaIion, cenIrally nanaged
cosIs have been allocaIed beIween reporIable segnenIs
consisIenIly on Ihe basis oI a neIhodology driven
principally by revenue and headcounI oI each segnenI.
This is consisIenI wiIh Ihe basis oI reporIing Io Ihe Board oI
DirecIors.
I,+9#89.& P Q"7*"$
This segnenI is responsible Ior connissioning and
scheduling progrannes on Ihe lTV channels, narkeIing
and progranne publiciIy and online righIs exploiIaIion.
BroadcasI & Online derives iIs revenue prinarily Iron Ihe
sale oI adverIising airIine and sponsorship. OIher sources
oI revenue are Iron parIicipaIion revenue, digiIal revenue,
online adverIising and Ihe digiIal IerresIrial nulIiplex SDN.
!56 ;&)#*+.
lTV SIudios is an inIernaIional producIions business. lI
conprises lTV SIudios UK (a connercial progranne
producIion business), inIernaIional producIion cenIres
in Ihe USA, Gernany, AusIralia, Sweden, Norway, linland
and lrance and lTV SIudios Global LnIerIainnenI, Ihe
disIribuIion and exploiIaIion business.
A signiIicanI porIion oI lTV SIudios' revenue is generaIed
when iI creaIes ideas IhaI are Ihen produced and sold as
progranning Io Ihe 'BroadcasI & Online' segnenI, prinarily
Ior lTV. This is shown in Ihe inIersegnenI revenue in Ihe
segnenIal analysis.
lTV SIudios Global LnIerIainnenI sells progranning,
exploiIs nerchandising and licensing worldwide, and is a
disIribuIor oI DVD enIerIainnenI prinarily in Ihe UniIed
Kingdon, boIh Ior lTV SIudios and Ihird parIies.
UV./E &2?#+2 2372=$5#6)8 5$2:,
The DirecIors assess Ihe perIornance oI Ihe reporIable
segnenIs based on a neasure oI LBlTA beIore excepIional
iIens. The DirecIors use Ihis neasurenenI basis as
iI excludes Ihe eIIecI oI non-recurring incone and
expendiIure. AnorIisaIion, invesInenI incone and share
oI proIiI/(losses) oI joinI venIures and associaIes are also
excluded Io reIlecI nore accuraIely how Ihe business is
nanaged and neasured on a day-Io-day basis. NeI Iinancing
cosIs are noI allocaIed Io segnenIs as Ihis Iype oI acIiviIy is
driven by Ihe cenIral Ireasury IuncIion, which nanages Ihe
cash posiIion and Iunding oI Ihe Group.
A reconciliaIion Iron LBlTA beIore excepIional iIens Io
proIiI beIore Iax is provided as Iollows.
2012
m
2011
n
LBlTA beIore excepIional iIens 520 462
OperaIing excepIional iIens (7) 1
AnorIisaIion and inpairnenI oI
inIangible asseIs (60) (59)
NeI Iinancing cosIs (99) (75)
Share oI losses oI joinI venIures and
associaIed underIakings (1) (2)
loss on sale and inpairnenI oI non-
currenI asseIs (excepIional iIens) (6) (3)
Gain on sale and inpairnenI oI
subsidiaries and invesInenIs
(excepIional iIens) 1 3
lroIiI beIore Iax 34S 327
WhilsI beconing nore inIernaIional, Ihe Group's principal
operaIions are in Ihe UniIed Kingdon. lIs revenue Iron
exIernal cusIoners in Ihe UniIed Kingdon is 1,895 nillion
(2011. 1,900 nillion), and IoIal revenue Iron exIernal
cusIoners in oIher counIries is 301 nillion (2011. 240
nillion).
There are Ihree nedia buying agencies acIing on behalI oI
a nunber oI cusIoners IhaI represenI Ihe Group's najor
cusIoners. These agencies are Ihe only cusIoners which
individually represenI over 10% oI Ihe Group's revenues.
Pevenues oI approxinaIely 486 nillion (2011. 480 nillion),
239 nillion (2011. 221 nillion) and 233 nillion (2011. 239
nillion) were derived Iron Ihese cusIoners. These revenues
are aIIribuIable Io Ihe 'BroadcasI & Online' segnenI.
B=2+)$56T 7#,$,
;&944 8+.&.
SIaII cosIs beIore excepIional iIens can be analysed as
Iollows.
2012
m
2011
n
Wages and salaries 236 220
Social securiIy and oIher cosIs 35 36
Share-based conpensaIion
(see noIe 4.7) 9 11
lension cosIs 20 20
300 287
There are 5 nillion oI sIaII cosIs wiIhin excepIional iIens
in 2012 (2011. nil) which principally relaIe Io redundancy
paynenIs as reorganisaIion in various parIs oI Ihe business
have Iaken place Io drive operaIional eIIiciency. ToIal sIaII
cosIs including excepIional iIens Ior Ihe year ended 31
Decenber 2012 are 305 nillion (2011. 287 nillion).
;$8&*+" NH /$.)7&. 4+, &0$ O$9, 8+"&*")$#
!!"#$%"& ##(#!(!"#! )*++, -.+
!
"
#
$
%
&
'
#
(
)

+
$
,
'
#
&
-
&
#
.
&
$
/
0

1

2
,
$
#
.
&
"
'
3
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4
$
#
5
'
#
6
.
3
%
$

1

7
"
3
.
3
%
"
.
8
(
+
$
(
,
'
3
(
"
9
"
8
"
&
0
:
'
;
$
#
3
.
3
%
$
RG;
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
!
"
#
$
#
%
"
$
&

(
)
$
)
*
+
*
#
)
,
-
.
*
/
.
"
*
0
The nunber oI Iull-Iine equivalenI enployees (excluding
shorI-Iern conIracIors and Ireelancers), calculaIed on a
weighIed average basis, during Ihe year was.
2012 2011
BroadcasI & Online 2,102 2,271
lTV SIudios 1,957 1,687
4,059 3,958
The increase in Iull-Iine equivalenI enployees in lTV SIudios
is prinarily driven by Ihe IransIer oI BreakIasI sIaII Iron
BroadcasI & Online Io lTV SIudios, as well as Ihe increase in
sIaII resulIing Iron Ihe Iour acquisiIions in Ihe year.
DeIails oI DirecIors' enolunenIs, share opIions, pension
enIiIlenenIs and long-Iern incenIive schene inIeresIs are
seI ouI in Ihe PenuneraIion PeporI.
R$%,$8*9&*+"
DepreciaIion in Ihe year was 27 nillion (2011. 26 nillion),
oI which 15 nillion (2011. 15 nillion) relaIes Io 'BroadcasI
& Online' and 12 nillion (2011. 11 nillion) Io 'lTV SIudios'.
Q%$,9&*"? 7$9.$.
The IoIal IuIure nininun lease paynenIs under non-
cancellable operaIing leases Iall due Ior paynenI as Iollows.
2012 Transponders Property Tota|
WiIhin 1 year 29 12 41
laIer Ihan 1 year and noI
laIer Ihan 5 years 137 29 166
laIer Ihan 5 years 220 91 311
3S6 132 51S
2011 (resIaIed) Transponders lroperIy ToIal
WiIhin 1 year 12 10 22
laIer Ihan 1 year and noI
laIer Ihan 5 years 153 31 184
laIer Ihan 5 years 275 88 363
440 129 569
The Group's operaIing leases relaIe Io Iransponder
asseIs and oIIice and sIudio properIies. The Group holds
Iransnission supply agreenenIs IhaI require Ihe use oI
speciIic Iransponder asseIs Ior a period oI up Io 12 years wiIh
paynenIs increasing over Iine, liniIed by speciIic Pll caps.
These supply agreenenIs are classiIied as operaIing leases,
in accordance wiIh Ihe Group's policy on leases deIailed in
SecIion 3.2. The Iransponder operaIing lease disclosures in
2011 have been resIaIed principally Io renove Ihe inpacI oI
discounIing Iron Ihe nininun IuIure paynenIs.
lncluded in 2012 properIy conniInenIs are IuIure nininun
lease paynenIs oI 82 nillion conIracIed on Ihe london
Television CenIre, a properIy which Ihe Group acquired
subsequenI Io year end in January 2013 (see noIe 5.3).
lroperIy leases Iypically run Ior a period oI beIween 3 and
15 years and nay have an opIion Io renew aIIer IhaI daIe.
lease paynenIs are generally subjecI Io narkeI review
every 5 years Io reIlecI narkeI renIals, buI because oI Ihe
uncerIainIy over Ihe anounI oI any IuIure changes, such
changes have noI been reIlecIed in Ihe Iable above. None oI
Ihe leases include conIingenI renIals.
The IoIal IuIure nininun sublease paynenIs expecIed Io
be received under non-cancellable subleases aI Ihe year end
is 4 nillion (2011. 4 nillion).
The IoIal operaIing lease expendiIure recognised during Ihe
year was 40 nillion (2011. 42 nillion) and IoIal sublease
paynenIs received was 2 nillion (2011. 4 nillion).
()#*& 4$$.
The Group engages KlMG AudiI llc ('KlMG') on assignnenIs
addiIional Io Iheir sIaIuIory audiI duIies where Iheir experIise
and experience wiIh Ihe Group are inporIanI. The Group's policy
on such assignnenIs is seI ouI in Ihe AudiI ConniIIee PeporI.
lees paid Io KlMG and iIs associaIes during Ihe year are seI
ouI below.
2012
m
2011
n
lor Ihe audiI oI Ihe Group's annual
accounIs 0.S 0.7
lor Ihe audiI oI subsidiaries oI Ihe
Group 0.1 0.1
AudiI-relaIed assurance services 0.1 0.1
ToIal AudiI and AudiI-PelaIed
assurance services 1.0 0.9
TaxaIion conpliance services 0.1 0.1
TaxaIion advisory services 0.3 0.7
Non-AudiI Services 0.4 0.8
1.4 1.7
There were no Iees payable in 2012 or 2011 Io KlMG and
associaIes Ior Ihe audiIing oI accounIs oI any associaIe oI Ihe
Group, inIernal audiI services, services relaIing Io corporaIe
Iinance IransacIions enIered inIo or proposed Io be enIered
inIo, by or on behalI oI Ihe Group or any oI iIs associaIes.
lees paid Io KlMG Ior audiI and oIher services Io Ihe
Conpany are noI disclosed in iIs individual accounIs as
Ihe Group accounIs are required Io disclose such Iees on a
consolidaIed basis.
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
RRG
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
FWF U372=$5#6)8 .$2:,
Keeping it simp|e . . .
LxcepIional iIens are naIerial and non-recurring iIens
excluded Iron nanagenenI's assessnenI oI proIiI
because by Iheir naIure Ihey could disIorI Ihe Group's
underlying qualiIy oI earnings. These are excluded Io
reIlecI perIornance in a consisIenI nanner and are in
line wiIh how Ihe business is nanaged and neasured
on a day-Io-day basis.
E77#46$56T =#85752,
LxcepIional iIens as described above are disclosed on Ihe
Iace oI Ihe incone sIaIenenI.
SubsequenI revisions oI esIinaIes Ior iIens iniIially
recognised as excepIional provisions are recorded as
excepIional iIens in Ihe year IhaI Ihe revision is nade. Gains
or losses on disposal oI non-core asseIs are also considered
excepIional due Io Iheir naIure and inpacI on Ihe Group's
underlying qualiIy oI earnings.
U372=$5#6)8 5$2:,
OperaIing and non-operaIing excepIional iIens are analysed
as Iollows.
(Charge)/crediI PeI.
2012
m
2011
n
OperaIing excepIional iIens.
PeorganisaIion and
resIrucIuring cosIs A (5)
Onerous properIy provision 1
AcquisiIion relaIed expenses B (2)
ToIal neI operaIing excepIional
iIens (7) 1
Non-operaIing excepIional
iIens.
loss on sale and inpairnenI
oI non-currenI asseIs C (6) (3)
Gain on sale and
inpairnenI oI subsidiaries
and invesInenIs D 1 3
ToIal non-operaIing
excepIional iIens (5)
ToIal excepIional iIens
beIore Iax (12) 1
( S /$+,?9"*.9&*+" 9"# ,$.&,)8&),*"? 8+.&.
There were 5 nillion oI excepIional resIrucIuring cosIs
in 2012 in relaIion Io resIrucIuring iniIiaIives Io drive cosI
eIIiciency in line wiIh Ihe sIraIegy (2011. no excepIional
reorganisaIion or resIrucIuring cosIs).
I S (8A)*.*&*+" ,$79&$# $T%$".$.
Charges oI 2 nillion principally relaIe Io proIessional Iees
(nainly Iinancial and legal due diligence) incurred on Ihe Iour
acquisiIions conpleIed during Ihe period (see noIe 3.4), and
expenses in Ihe period wiIh respecI Io posI-conbinaIion
renuneraIion cosIs accrued Io Iorner owners (2011. nil).
: S U+.. +" .97$ 9"# *2%9*,2$"& +4 "+"K8),,$"& 9..$&.
ln 2012 a 6 nillion (2011. 3 nillion) loss on sale and
inpairnenI oI non-currenI asseIs was incurred prinarily as a
resulI oI an inpairnenI on Ihe prenises in ManchesIer oI 5
nillion, arising Iron Ihe decision Io reclassiIy Ihe properIies
Io asseIs held Ior sale (see noIe 3.5).
R S D9*" +" .97$ 9"# *2%9*,2$"& +4 .)3.*#*9,*$. 9"#
*"<$.&2$"&.
The 1 nillion crediI relaIes Io a 3 nillion gain on Ihe sale
oI Screenvision US (Technicolor Cinena AdverIisers llC),
oIIseI by 2 nillion oI inpairnenI charges on invesInenIs
in lreesaI (UK) liniIed and Nolo liln and Television
liniIed. ln 2011 Ihe 3 nillion gain principally relaIed Io Ihe
sale oI Screenvision loldings (Lurope) liniIed.
FWS /)3)$5#6
Keeping it simp|e . . .
This secIion lays ouI Ihe Iax accounIing policies, Ihe
currenI and deIerred Iax charges or crediIs in Ihe year
(which IogeIher nake up Ihe IoIal Iax charge or crediI
in Ihe incone sIaIenenI), a reconciliaIion oI proIiI
or loss beIore Iax Io Ihe Iax charge or crediI and Ihe
novenenIs in deIerred Iax asseIs and liabiliIies.
E77#46$56T =#85752,
The Iax charge Ior Ihe period is recognised in Ihe incone
sIaIenenI and Ihe sIaIenenI oI conprehensive incone,
according Io Ihe accounIing IreaInenI oI Ihe relaIed
IransacIion. The Iax charge conprises boIh currenI and
deIerred Iax. The calculaIion oI Ihe Group's IoIal Iax charge
involves a degree oI esIinaIion and judgenenI in respecI
oI cerIain iIens whose Iax IreaInenI cannoI be Iinally
deIernined unIil a resoluIion has been reached by Ihe
relevanI Iax auIhoriIy.
;$8&*+" NH /$.)7&. 4+, &0$ O$9, 8+"&*")$#
!!"#$%"& ##(#!(!"#! )*++, -.+
!
"
#
$
%
&
'
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(
)

+
$
,
'
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&
-
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#
.
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/
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1

2
,
$
#
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#
5
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6
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$

1

7
"
3
.
3
%
"
.
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(
+
$
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9
"
8
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0
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3
.
3
%
$
RRR
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
!
"
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$
#
%
"
$
&

(
)
$
)
*
+
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)
,
-
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.
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0
CurrenI Iax is Ihe expecIed Iax payable or receivable on Ihe
Iaxable incone or loss Ior Ihe year and any adjusInenI in
respecI oI previous years. The currenI Iax charge is based on
Iax raIes IhaI are enacIed or subsIanIively enacIed aI Ihe
year end.
The Group recognises liabiliIies Ior anIicipaIed Iax issues
based on esIinaIes oI Ihe addiIional Iaxes IhaI are likely
Io becone due, which require judgenenI. AnounIs are
accrued based on nanagenenI's inIerpreIaIion oI speciIic
Iax law and Ihe likelihood oI seIIlenenI. Where Ihe Iinal
Iax ouIcone oI Ihese naIIers is diIIerenI Iron Ihe anounIs
IhaI were iniIially recorded, such diIIerences will inpacI
Ihe incone Iax and deIerred Iax provisions in Ihe period in
which such deIerninaIion is nade.
DeIerred Iax arises due Io cerIain Ienporary diIIerences
beIween Ihe carrying anounIs oI asseIs and liabiliIies
Ior Iinancial reporIing purposes and Ihose Ior IaxaIion
purposes. The Iollowing Ienporary diIIerences are noI
provided Ior.
- Ihe iniIial recogniIion oI goodwill,
- Ihe iniIial recogniIion oI asseIs or liabiliIies IhaI aIIecI
neiIher accounIing nor Iaxable proII oIher Ihan in a
business conbinaIion, and
- diIIerences relaIing Io invesInenIs in subsidiaries Io
Ihe exIenI IhaI Ihey will probably noI reverse in Ihe
Ioreseeable IuIure.
The anounI oI deIerred Iax provided is based on Ihe
expecIed nanner oI realisaIion or seIIlenenI oI Ihe
carrying anounI oI asseIs and liabiliIies. A deIerred Iax
asseI is recognised only Io Ihe exIenI IhaI iI is probable
IhaI suIIicienI Iaxable proIiI will be available Io uIilise Ihe
Ienporary diIIerence.
PecogniIion oI deIerred Iax asseIs, IhereIore, involves
judgenenI regarding Ihe Iining and level oI IuIure Iaxable
incone. DeIerred Iax asseIs and liabiliIies are disclosed neI
Io Ihe exIenI IhaI Ihey relaIe Io Iaxes levied by Ihe sane
auIhoriIy and Ihe Group has Ihe righI oI seI-oII.
/)3)$5#6 X .67#:2 ,$)$2:26$
The IoIal IaxaIion charge in Ihe incone sIaIenenI is
analysed as Iollows.
2012
m
2011
n
CurrenI Iax.
CurrenI Iax charge beIore
excepIional iIens (63) (60)
CurrenI Iax charge on excepIional
iIens (2)
(65) (60)
AdjusInenIs Ior prior periods 10 19
(55) (41)
DeIerred Iax.
OriginaIion and reversal oI
Ienporary diIIerences (30) (38)
AdjusInenIs Ior prior periods 5
(25) (38)
ToIal IaxaIion charge in Ihe incone
sIaIenenI (S0) (79)
ln order Io undersIand how, in Ihe incone sIaIenenI, a
Iax charge oI 80 nillion (2011. 79 nillion) arises on a
proIiI beIore Iax oI 348 nillion (2011. 327 nillion), Ihe
IaxaIion charge IhaI would arise aI Ihe sIandard raIe oI
UK corporaIion Iax is reconciled Io Ihe acIual Iax charge as
Iollows.
2012
m
2011
n
lroIiI beIore Iax 34S 327
TaxaIion charge aI UK corporaIion Iax
raIe oI 24.5% (2011. 26.5%) (S5) (87)
Non-Iaxable incone/non-deducIible
expenses (4) (7)
PecogniIion oI previously unrecognised
Ienporary diIIerences S 11
AdjusInenIs Ior prior periods 7 8
lnpacI oI changes in Iax raIe (3) (3)
OIher (3) (1)
ToIal IaxaIion charge in Ihe incone
sIaIenenI (S0) (79)
Non-deducIible expenses are expenses IhaI are noI
expecIed Io be allowable Ior Iax purposes. Sinilarly non-
Iaxable incone is incone IhaI will noI be Iaxed.
Tax losses broughI Iorward nay be uIilised againsI currenI
year proIiIs iI Ihe broughI Iorward losses and Ihe currenI
year proIiIs are oI Ihe sane Iype. Use oI Iax losses in Ihis
way leads Io a reducIion oI Ihe Iax charge.
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
RRF
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
A deIerred Iax crediI oI 8 nillion is recognised on overseas
Ienporary diIIerences in Ihe USA and Gernany. The
deIerred Iax crediI oI 11 nillion in 2011 was on Iinancing
losses linked Io previous invesInenIs ( 'loan relaIionship
deIiciIs') Iollowing Ihe successIul conclusion oI an enquiry
wiIh Ihe Iax auIhoriIies.
AdjusInenIs Ior prior periods prinarily arise where an
ouIcone is obIained on cerIain Iax naIIers which diIIers
Iron expecIaIions held when Ihe relaIed provision was
nade. Where Ihe ouIcone is nore Iavourable Ihan Ihe
provision nade, Ihe diIIerence is released, lowering
Ihe currenI year Iax charge. Where Ihe ouIcone is less
Iavourable Ihan our provision, an addiIional charge Io
currenI year Iax will occur.
The eIIecIive Iax raIe is Ihe Iax charge on Ihe Iace oI
Ihe incone sIaIenenI expressed as a percenIage oI Ihe
proIiI beIore Iax. ln Ihe year ended 31 Decenber 2012,
Ihe eIIecIive Iax raIe is lower Ihan Ihe sIandard raIe oI UK
corporaIion Iax prinarily because oI adjusInenIs Ior prior
periods and recogniIion oI overseas deIerred Iax asseIs. ln
Ihe year ended 31 Decenber 2011, Ihe eIIecIive Iax raIe
was lower Ihan Ihe sIandard raIe oI UK corporaIion Iax
prinarily due Io Ihe seIIlenenI oI ouIsIanding naIIers
in Ihe overseas business. As explained in Ihe linancial and
lerIornance Peview, Ihe Group uses an adjusIed Iax raIe Io
show Ihe cash Iax inpacI on iIs adjusIed earnings.
/)3)$5#6 X B$"2+ 7#:=+2"26,5>2 567#:2
WiIhin oIher conprehensive incone a Iax crediI IoIalling
53 nillion (2011. crediI oI 30 nillion) has been recognised
represenIing deIerred Iax. An analysis oI Ihis is included
below in Ihe deIerred Iax novenenI Iable.
Taxation - 5tatement of hnancia| position
The Iable below ouIlines Ihe deIerred Iax asseIs/(liabiliIies) IhaI are recognised in Ihe sIaIenenI oI Iinancial posiIion,
IogeIher wiIh Iheir novenenIs in Ihe year.
AI
1 January
2012
n
Pecognised in
Ihe incone
sIaIenenI
n
Pecognised
in equiIy
n
At
31 December
2012
m
lroperIy, planI and equipnenI 1 (7) (6)
lnIangible asseIs (49) 15 (34)
lrogranne righIs 1 1
lension schene deIiciIs 71 (27) 52 96
UK Iax losses 32 (15) 17
lnIeresI-bearing loans and borrowings, and derivaIives (1) 1 -
Share-based conpensaIion 8 1 9
Overseas 9 9
OIher 2 (1) 1
65 (25) 53 93
AI
1 January
2011
n
Pecognised in
Ihe incone
sIaIenenI
n
Pecognised
in equiIy
n
AI
31 Decenber
2011
n
lroperIy, planI and equipnenI 2 (1) 1
lnIangible asseIs (65) 16 (49)
lrogranne righIs 2 (1) 1
lension schene deIiciIs 76 (35) 30 71
UK Iax losses 50 (18) 32
lnIeresI-bearing loans and borrowings, and derivaIives (1) (1)
Share-based conpensaIion 7 1 8
OIher 2 2
73 (38) 30 65
;$8&*+" NH /$.)7&. 4+, &0$ O$9, 8+"&*")$#
!!"#$%"& ##(#!(!"#! )*++, -.+
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!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
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AI 31 Decenber 2012, IoIal deIerred Iax asseIs are 133
nillion (2011. 115 nillion) and IoIal deIerred Iax liabiliIies
are 40 nillion (2011. 50 nillion).
The deIerred Iax balance relaIes Io.
- properIy, planI and equipnenI Iining diIIerences arising
on asseIs qualiIying Ior capiIal allowances,
- Iining diIIerences on inIangible asseIs arising on
business conbinaIions,
- progranne righIs Iining diIIerences on inIerconpany
proIIs on sIock,
- pension schene deIciI Iining diIIerences on Ihe lAS
19 pension deIciI, addiIional conIribuIions resulIing
Iron Iunding Ihrough Ihe SDN pension parInership
(noI recognised as conIribuIions under lAS 19) and Ihe
spreading oI Iax relieI on one-oII large pension Iunding
paynenIs,
- UK Iax loss Iining diIIerences in receiving Ihe beneII oI
Ihe Group's Iax losses,
- inIeresI-bearing loans and borrowings and derivaIives
Iining diIIerences on hedging insIrunenIs,
- share-based conpensaIion Iining diIIerences on share
schenes,
- overseas Iining diIIerences on inIangible asseIs and neI
operaIing losses arising in Ihe US and Gernany, and
- oIher Iining diIIerences on niscellaneous iIens including
sale and leaseback arrangenenIs and various provisions.
Due Io Ihe change in Ihe sIaIuIory Iax raIe, deIerred Iax is
provided aI 23% (2011. 25%), which is Ihe raIe IhaI has been
subsIanIively enacIed Io apply Iron 1 April 2013. The inpacI
oI Ihe change in Ihe Iax raIe is 7 nillion (2011. 6 nillion),
oI which 3 nillion was recognised in Ihe deIerred Iax
charge and Ihe renainder recognised in equiIy Io reIlecI Ihe
novenenIs in Ihe pension deIiciI Iaken Io equiIy.
The deIerred Iax balance associaIed wiIh Ihe pension deIiciI
has been adjusIed Io reIlecI Ihe currenI Iax beneIiI obIained
in Ihe currenI year Iollowing Ihe enployer conIribuIions oI
82 nillion Io Ihe Group's deIined beneIiI pension schene.
The adjusInenI in equiIy Io Ihe deIerred Iax balance prinarily
relaIes Io Ihe acIuarial losses recognised in Ihe period.
A deIerred Iax asseI oI 513 nillion (2011. 558 nillion)
in respecI oI capiIal losses oI 2,230 nillion (2011. 2,230
nillion) has noI been recognised due Io uncerIainIies as
Io Ihe anounI and wheIher a capiIal gain will arise in Ihe
appropriaIe Iorn and relevanI IerriIory againsI which such
losses could be uIilised. lor Ihe sane reasons, deIerred Iax
asseIs in respecI oI overseas losses oI 13 nillion (2011. 9
nillion) IhaI Iine expire beIween 2017 and 2026 have noI
been recognised.
FW< U)+656T, =2+ ,")+2
Keeping it simp|e . . .
Larnings per share ('LlS') is Ihe anounI oI posI-Iax
proIiI aIIribuIable Io each share.
Basic LlS is calculaIed on Ihe Group proIiI Ior Ihe year
aIIribuIable Io equiIy shareholders oI 267 nillion
(2011. 247 nillion) divided by 3,888 nillion (2011.
3,883 nillion) being Ihe weighIed average nunber oI
shares in issue during Ihe year.
DiluIed LlS Iakes inIo accounI Ihe diluIive eIIecI oI all
share opIions being exercised and assunes IhaI Ihe
135 nillion converIible bond is converIed Io shares in
iIs enIireIy.
Basic LlS is adjusIed in order Io nore accuraIely show
Ihe business perIornance oI Ihe Group in a consisIenI
nanner and reIlecI how Ihe business is nanaged
and neasured on a day-Io-day basis. AdjusIed LlS
is adjusIed Ior excepIional iIens, inpairnenI oI
inIangible asseIs, anorIisaIion oI inIangible asseIs
acquired Ihrough business conbinaIions, neI Iinancing
cosI adjusInenIs and prior period and oIher Iax
adjusInenIs.
The calculaIion oI basic, diluIed and adjusIed LlS is seI ouI
below.
U)+656T, =2+ ,")+2 FGRF
PeI.
Basic
m
Di|uted
m
lroIiI Ior Ihe year aIIribuIable Io
equiIy shareholders oI lTV plc 267 275
WeighIed average nunber oI
ordinary shares in issue nillion 3,SSS 3,SSS
DiluIion due Io share opIions - 43
DiluIion due Io converIible bond A - 192
ToIal weighIed average nunber oI
ordinary shares in issue nillion 3,SSS 4,123
Earnings per ordinary share 6.9p 6.7p
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
RR<
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
EAY4,$2A 2)+656T, =2+ ,")+2 FGRF
PeI.
Adjusted
m
Di|uted
m
lroIiI Ior Ihe year aIIribuIable Io
equiIy shareholders oI lTV plc A 267 275
LxcepIional iIens B 10 10
Profit for the year before
exceptiona| items 277 2S5
AnorIisaIion and inpairnenI oI
acquired inIangible asseIs C 37 37
AdjusInenIs Io neI Iinancing cosIs D 42 42
OIher Iax adjusInenIs L 2 2
AdjusIed proIiI l 35S 366
ToIal weighIed average nunber oI
ordinary shares in issue nillion 3,SSS 4,123
Adjusted earnings per ordinary
share 9.2p S.9p
U)+656T, =2+ ,")+2 FGRR
PeI.
Basic
n
DiluIed
n
lroIiI Ior Ihe year aIIribuIable Io
equiIy shareholders oI lTV plc 247 255
WeighIed average nunber oI
ordinary shares in issue nillion 3,883 3,883
DiluIion due Io share opIions 36
DiluIion due Io converIible bond A 192
ToIal weighIed average nunber oI
ordinary shares in issue nillion 3,883 4,111
Larnings per ordinary share 6.4p 6.2p
EAY4,$2A 2)+656T, =2+ ,")+2 FGRR
PeI.
AdjusIed
n
DiluIed
n
lroIiI Ior Ihe year aIIribuIable Io
equiIy shareholders oI lTV plc 247 255
LxcepIional iIens B (1) (1)
lroIiI Ior Ihe year beIore
excepIional iIens 246 254
AnorIisaIion and inpairnenI oI
acquired inIangible asseIs C 35 35
AdjusInenIs Io neI Iinancing cosIs D 18 18
OIher Iax adjusInenIs L 7 7
AdjusIed proIiI l 306 314
ToIal weighIed average nunber oI
ordinary shares in issue nillion 3,883 4,111
AdjusIed earnings per ordinary share 7.9p 7.6p
The raIionale Ior deIernining Ihe adjusInenIs Io proIiI is
provided in Ihe linancial and lerIornance Peview. DeIails oI
Ihe adjusInenIs Io earnings are below.
A. DiluIed earnings per share are inpacIed by Ihe 135
nillion 2016 converIible Lurobond issued in Novenber
2009. DiluIed proIiI Ior Ihe year aIIribuIable Io equiIy
shareholders oI lTV plc includes an adjusInenI Ior
inIeresI and accreIion on Ihe converIible Lurobond
which would noI have been incurred iI Ihe bond had been
converIed Io equiIy in Ihe period.
B. The excepIional iIens deIailed in SecIion 2.2 are adjusIed
Io reIlecI proIiI Ior Ihe year beIore excepIional iIens.
A Iax crediI oI 2 nillion (2011. nil) is recognised on Ihe
operaIing excepIional iIens oI 7 nillion (2011. 1 nillion
crediI). There is no Iax crediI recognised on Ihe non-
operaIing excepIional iIens oI 5 nillion.
C. AnorIisaIion and inpairnenI oI acquired inIangible
asseIs oI 37 nillion (2011. 35 nillion) is calculaIed as
IoIal anorIisaIion and inpairnenI oI 60 nillion (2011.
59 nillion), less anorIisaIion oI soIIware licences
and developnenI oI 11 nillion (2011. 12 nillion). A
relaIed Iax crediI oI 12 nillion (2011. 12 nillion) is Ihen
recognised on Ihe neI anounI.
D. AdjusInenIs Io neI Iinancing cosIs oI 42 nillion (2011.
18 nillion) is calculaIed as Ihe gross adjusInenI oI 55
nillion (2011. 25 nillion), reduced by a Iax crediI oI 13
nillion (2011. 7 nillion). AdjusInenIs prinarily relaIe
Io nark-Io-narkeI novenenIs on swaps and Ioreign
exchange, losses on buybacks and inpuIed pension
inIeresI charges.
E. OIher Iax adjusInenIs reIlecI Ihe inpacI on Ihe deIerred
Iax charge oI Ihe decrease in Ihe sIaIuIory Iax raIe Iron
24.5% Io 23%. ln 2011, Ihe adjusInenI oI 7 nillion was
nade Io reIlecI Ihe reversal oI Ihe crediI arising Iron Ihe
recogniIion oI Ihe deIerred Iax asseI on cerIain losses,
which were parIially oIIseI by Ihose losses uIilised.
F. AdjusIed proIiI is deIined as proIiI Ior Ihe year beIore
excepIional iIens, anorIisaIion and inpairnenI oI
acquired inIangible asseIs, neI Iinancing cosI adjusInenIs
and oIher Iax adjusInenIs.
;$8&*+" NH /$.)7&. 4+, &0$ O$9, 8+"&*")$#
!!"#$%"& ##(#!(!"#! )*++, -.+
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!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
!
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#
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SWR Z#+K56T 7)=5$)8
Keeping it simp|e . . .
Working capiIal represenIs Ihe asseIs and liabiliIies
Ihe Group generaIes Ihrough iIs Irading acIiviIy. The
Group IhereIore deIines working capiIal as disIribuIion
righIs, progranne righIs and oIher invenIory, Irade
and oIher receivables and Irade and oIher payables.
CareIul nanagenenI oI working capiIal ensures
IhaI Ihe Group can neeI iIs Irading and Iinancing
obligaIions wiIhin iIs ordinary operaIing cycle.
Working capiIal is a driver oI Ihe 'proIiI Io cash'
conversion, a key perIornance indicaIor Ior Ihe Group.
The Group's IargeI 'proIiI Io cash' raIio on a rolling
Ihree-year basis is aI leasI 90%.
ln Ihe Iollowing secIion you will Iind IurIher
inIornaIion regarding working capiIal nanagenenI
and analysis oI Ihe elenenIs oI working capiIal.
VWGWG R*.&,*3)&*+" ,*?0&.
E77#46$56T =#85752,
'DisIribuIion righIs' are progranne righIs Ihe Group buys
Iron producers Io derive IuIure revenues principally Ihrough
licensing Io broadcasIers. These are classiIied as non-currenI
asseIs as Ihese righIs are used Io derive long-Iern econonic
beneIiI Ior Ihe Group.
DisIribuIion righIs are recognised iniIially aI cosI and
charged Ihrough operaIing cosIs in Ihe incone sIaIenenI
over a naxinun Iive-year period IhaI is dependenI on
eiIher cunulaIive sales and progranne genre, or based on
IorecasI IuIure sales. CerIain Iiln righIs are expensed over
a period oI up Io Ien years reIlecIing Ihe esIinaIed longer
period over which Ihese Iypes oI righIs can be exploiIed.
These esIinaIes are based on hisIorical experience wiIh
sinilar righIs as well as anIicipaIion oI IuIure evenIs.
Advances paid Ior Ihe acquisiIion oI disIribuIion righIs
are disclosed as disIribuIion righIs as soon as Ihey are
conIracIed. These advances are noI expensed unIil Ihe
progranne is available Ior disIribuIion. Up Io IhaI poinI
Ihey are assessed annually Ior inpairnenI Ihrough Ihe
reassessnenI oI Ihe IuIure sales expecIed Io be earned
Iron IhaI IiIle.
MovenenIs in disIribuIion righIs during Ihe year are shown
in Ihe Iable below.
2012
m
2011
n
CosI.
AI 1 January 125 111
AddiIions 15 14
AI 31 Decenber 140 125
Charged Io incone sIaIenenI.
AI 1 January 114 99
Charge Ior Ihe year 9 15
AI 31 Decenber 123 114
NeI book value 17 11
VWGWN >,+?,922$ ,*?0&. 9"# +&0$, *"<$"&+,B
E77#46$56T =#85752,
Where progranning, sporIs righIs and Iiln righIs are
acquired Ior Ihe prinary purpose oI broadcasIing, Ihese are
recognised wiIhin currenI asseIs.
AsseIs are recognised when Ihe Group conIrols Ihe
respecIive asseIs and Ihe risks and rewards associaIed wiIh
Ihen.
lor acquired progranne righIs, asseIs are recognised as
paynenIs are nade and are recognised in Iull when Ihe
progranne is available Ior Iransnission. lrogrannes
produced inIernally, eiIher Ior Ihe purpose oI broadcasIing
or Io be sold in Ihe nornal course oI Ihe Group's operaIing
cycle, are recognised wiIhin currenI asseIs aI producIion
cosI.
In this section . . .
This secIion shows Ihe asseIs used Io generaIe Ihe Group's Irading perIornance and Ihe liabiliIies incurred as a resulI.
liabiliIies relaIing Io Ihe Group's Iinancing acIiviIies are addressed in SecIion 4. DeIerred Iax asseIs and liabiliIies are
shown in SecIion 2.3.
On Ihe Iollowing pages Ihere are secIions covering working capiIal, non-currenI asseIs, acquisiIions and disposals,
oIher payables due aIIer nore Ihan one year, provisions and pensions.
;$8&*+" VH Q%$,9&*"? (..$&. 9"# U*93*7*&*$.
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
RRH
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
lrogranne cosIs and righIs, including Ihose acquired under
sale and leaseback arrangenenIs, are generally expensed
Io operaIing cosIs in Iull on IirsI Iransnission. liln righIs,
sporIs righIs and cerIain acquired progrannes are expensed
over a nunber oI Iransnissions reIlecIing Ihe paIIern in
which Ihe righI is consuned.
lrogranne cosIs and righIs noI yeI wriIIen oII are included
in Ihe sIaIenenI oI Iinancial posiIion aI Ihe lower oI cosI
and neI realisable value. ln assessing neI realisable value
Ior progrannes in producIion, judgenenI is required when
considering Ihe conIracIed sales price and esIinaIed cosIs
Io conpleIe. lor progranne sIock, sporIs righIs and Iiln
righIs, Ihe neI realisable value assessnenI is based on
esIinaIed airIine value, wiIh consideraIion given Io wheIher
Ihe nunber oI Iransnissions purchased can be eIIicienIly
played ouI over Ihe licence period. Any reversals oI wriIe-
downs Ior progranne cosIs and righIs are recognised as a
reducIion in operaIing cosIs.
lisIorically, lTV has enIered inIo sale and leaseback
agreenenIs in relaIion Io cerIain progranne IiIles. PelaIed
ouIsIanding sale and leaseback obligaIions, which conprise
Ihe principal and accrued inIeresI, are included wiIhin
borrowings. The Iinance relaIed elenenI oI Ihe agreenenI is
charged Io Ihe incone sIaIenenI over Ihe Iern oI Ihe lease
on an eIIecIive inIeresI basis. Sale and leaseback obligaIions
are secured againsI an equivalenI cash balance held wiIhin
cash and cash equivalenIs.
The progranne righIs and oIher invenIory aI Ihe year end
are shown in Ihe Iable below.
2012
m
2011
n
Acquired progranning 102 122
lroducIion 95 87
Connissions 24 36
SporIs righIs 2S 36
lrepaynenIs - 2
OIher 1 2
250 285
lroducIion invenIory conprises Ihe cosIs incurred by lTV
SIudios in producing a progranne, where Ihe progranne
is parI way Ihrough Ihe producIion process and noI yeI
available Ior delivery Io a broadcasIer. Connissions
prinarily conprise progrannes purchased based on
ediIorial speciIicaIion, over which Ihe Group has sone
conIrol.
lrogranne righIs and oIher invenIory wriIIen down in Ihe
year were 3 nillion (2011. 5 nillion). There have been no
reversals relaIing Io invenIory previously wriIIen down Io
neI realisable value (2011. nil).
VWGWV >,+?,922$ 8+22*&2$"&.
There are operaIing conniInenIs in respecI oI
progranning enIered inIo in Ihe ordinary course oI business
wiIh progranne suppliers, sporIs organisaIions and Iiln
disIribuIors in respecI oI righIs Io broadcasI on Ihe lTV
neIwork. ConniInenIs in respecI oI Ihese purchases, which
are noI reIlecIed in Ihe sIaIenenI oI Iinancial posiIion, are
due Ior paynenI as Iollows.
2012
m
2011
n
WiIhin one year 439 396
laIer Ihan one year and noI nore Ihan
Iive years 474 599
More Ihan Iive years 47 85
960 1,080
VWGWX 5,9#$ 9"# +&0$, ,$8$*<937$.
E77#46$56T =#85752,
Trade receivables are recognised iniIially aI Ihe value oI
Ihe invoice senI Io Ihe cusIoner and subsequenIly aI Ihe
anounIs considered recoverable (anorIised cosI). Where
paynenIs are noI due Ior nore Ihan one year, Ihey are
shown in Ihe Iinancial sIaIenenIs aI Iheir neI presenI value
Io reIlecI Ihe econonic cosI oI delayed paynenI. The Group
provides goods and services Io subsIanIially all iIs cusIoners
on crediI Ierns.
LsIinaIes are used in deIernining Ihe level oI receivables
IhaI will noI, in Ihe opinion oI Ihe DirecIors, be collecIed.
These esIinaIes include such IacIors as hisIorical
experience, Ihe currenI sIaIe oI Ihe UK and overseas
econonies and indusIry speciIic IacIors. A provision Ior
inpairnenI oI Irade receivables is esIablished when Ihere is
suIIicienI evidence IhaI Ihe Group will noI be able Io collecI
all anounIs due.
The carrying value oI Irade receivables is considered Io
approxinaIe Iair value.
;$8&*+" VH Q%$,9&*"? (..$&. 9"# U*93*7*&*$. 8+"&*")$#
!!"#$%"& ##(#!(!"#! )*++, -.+
!
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.
3
%
"
.
8
(
+
$
(
,
'
3
(
"
9
"
8
"
&
0
:
'
;
$
#
3
.
3
%
$
RRO
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
!
"
#
$
#
%
"
$
&

(
)
$
)
*
+
*
#
)
,
-
.
*
/
.
"
*
0
Trade and oIher receivables can be analysed as Iollows.
2012
m
2011
n
Due wiIhin one year.
Trade receivables 264 271
OIher receivables 43 22
lrepaynenIs and accrued incone 5S 77
365 370
Due aIIer nore Ihan one year.
Trade receivables 14 26
ToIal Irade and oIher receivables 379 396
278 nillion (2011. 297 nillion) oI IoIal Irade receivables
IhaI are noI inpaired are aged as Iollows.
2012
m
2011
n
CurrenI 274 277
Up Io 30 days overdue 2 4
BeIween 30 and 90 days overdue 2 5
Over 90 days overdue - 11
27S 297
As aI 31 Decenber 2012, Irade receivables oI 7 nillion
(2011. 11 nillion) were provided againsI. MovenenIs in Ihe
Group's provision Ior inpairnenI oI Irade receivables can be
shown as Iollows.
2012
m
2011
n
AI 1 January 11 8
Charged during Ihe year 3 8
Peceivables wriIIen oII during Ihe year
as uncollecIable (uIilisaIion oI provision) (4) (1)
Unused anounIs reversed (3) (4)
AI 31 Decenber 7 11
The 7 nillion provision Ior doubIIul debIs is aged as 4
nillion due in nore Ihan 90 days and 3 nillion due in up Io
30 days Iron Ihe reporIing daIe.
The Iable below shows Ihe Group's neI receivables relaIing
Io non-consolidaIed licensees in Ihe 'BroadcasI & Online'
segnenI, where Ihe Group has boIh supplier and cusIoner
relaIionships.
2012
m
2011
n
Trade receivables currenI 6 9
Trade receivables pasI due buI noI
inpaired 1 12
OIher receivables - 5
Trade and oIher payables (1) (4)
6 22
VWGWY 5,9#$ 9"# +&0$, %9B937$. #)$ C*&0*" +"$ B$9,
E77#46$56T =#85752,
Trade payables are recognised aI Ihe value oI Ihe invoice
received Iron a supplier.
The carrying value oI Irade payables is considered Io
approxinaIe Iair value.
Trade and oIher payables due wiIhin one year can be
analysed as Iollows.
2012
m
2011
n
Trade payables 34 69
Social securiIy 7 16
OIher payables 1S9 183
Accruals and deIerred incone 3S4 371
614 639
VWGWZ 5,9#$ %9B937$. #)$ 94&$, 2+,$ &09" +"$ B$9,
Trade payables due aIIer nore Ihan one year can be
analysed as Iollows.
2012
m
2011
n
Trade payables 30 45
This prinarily relaIes Io Iiln crediIors Ior which paynenI is
due aIIer nore Ihan one year.
VWGW[ \+,]*"? 89%*&97 29"9?$2$"&
Cash and working capiIal nanagenenI conIinues Io be a key
Iocus. During Ihe year Ihe cash inIlow Iron working capiIal
was 1 nillion (2011. 18 nillion) derived as Iollows.
2012
m
2011
n
Decrease in progranne righIs and
oIher invenIory and disIribuIion righIs 29
Decrease in receivables 17 52
Decrease in payables (45) (34)
Working capiIal inIlow 1 18
The decrease in progranne righIs and oIher invenIory is
largely driven by a reducIion in acquired Iilns and sporIs
righIs.
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
RRP
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
AgreenenIs wiIh non-consolidaIed licensees resulIed in a
reducIion in receivables. Changes Io Ihe Iining oI broadcasI
inIrasIrucIure paynenIs drove a reducIion in prepaynenIs
Iron Ihe prior year.
The decrease in payables prinarily relaIes Io Irade payables,
and resulIs Iron reducIions in progranne and sporIs righIs
crediIors.
SWF !+#=2+$'[ =8)6$ )6A 2J45=:26$
Keeping it simp|e . . .
The Iollowing secIion shows Ihe physical asseIs used
by Ihe Group Io generaIe revenues and proIiIs.
These asseIs include oIIice buildings and sIudios, as
well as equipnenI used in broadcasI Iransnission,
progranne producIion and supporI acIiviIies.
The cosI oI Ihese asseIs is Ihe anounI iniIially paid
Ior Ihen. A depreciaIion expense is charged Io Ihe
incone sIaIenenI Io reIlecI annual wear and Iear and
Ihe reduced value oI Ihe asseI over Iine. DepreciaIion
is calculaIed by esIinaIing Ihe nunber oI years Ihe
Group expecIs Ihe asseI Io be used (useIul econonic
liIe). lI Ihere has been a Iechnological change or
decline in business perIornance Ihe DirecIors review
Ihe value oI Ihe asseIs Io ensure Ihey have noI Iallen
below Iheir depreciaIed value. lI an asseI's value Ialls
below iIs depreciaIed value an addiIional one-oII
inpairnenI charge is nade againsI proIiI.
This secIion also explains Ihe accounIing policies
Iollowed by lTV and Ihe speciIic esIinaIes nade in
arriving aI Ihe neI book value oI Ihese asseIs.
E77#46$56T =#85752,
>,+%$,&BE %79"& 9"# $A)*%2$"&
lroperIy, planI and equipnenI are sIaIed aI cosI less
accunulaIed depreciaIion and inpairnenI losses. CerIain
iIens oI properIy, planI and equipnenI IhaI were revalued
Io Iair value prior Io 1 January 2004, Ihe daIe oI IransiIion
Io llPS, are neasured on Ihe basis oI deened cosI, being
Ihe revalued anounI less depreciaIion up Io Ihe daIe oI
IransiIion.
U$9.$.
linance leases are Ihose which IransIer subsIanIially all Ihe
risks and rewards oI ownership Io Ihe lessee. CerIain service
conIracIs involve Ihe use oI speciIic asseIs (e.g. Iransnission
or sIudio equipnenI) and IhereIore conIain an enbedded
lease.
DeIernining wheIher a lease is a Iinance lease requires
judgenenI as Io wheIher subsIanIially all oI Ihe risks and
beneIiIs oI ownership have been IransIerred Io Ihe Group.
LsIinaIes used by nanagenenI in naking Ihis assessnenI
include Ihe useIul econonic liIe oI asseIs, Ihe Iair value
oI Ihe asseI and Ihe discounI raIe applied Io Ihe IoIal
paynenIs required under Ihe lease. AsseIs held under such
leases are included wiIhin properIy, planI and equipnenI
and depreciaIed on a sIraighI-line basis over Iheir esIinaIed
useIul lives.
OuIsIanding Iinance lease obligaIions, which conprise
Ihe principal plus accrued inIeresI, are included wiIhin
borrowings. The Iinance elenenI oI Ihe agreenenIs is
charged Io Ihe incone sIaIenenI over Ihe Iern oI Ihe lease
on an eIIecIive inIeresI basis.
All oIher leases are operaIing leases, Ihe renIals on which
are charged Io Ihe incone sIaIenenI on a sIraighI-line basis
over Ihe lease Iern.
R$%,$8*9&*+"
DepreciaIion is provided Io wriIe oII Ihe cosI oI properIy,
planI and equipnenI less esIinaIed residual value, on a
sIraighI-line basis over Iheir esIinaIed useIul lives. The
annual depreciaIion charge is sensiIive Io Ihe esIinaIed
useIul liIe oI each asseI and Ihe expecIed residual value aI
Ihe end oI iIs liIe. The najor caIegories oI properIy, planI
and equipnenI are depreciaIed as Iollows.
AsseI class DepreciaIion policy
lreehold land noI depreciaIed
lreehold buildings up Io 60 years
leasehold properIies shorIer oI residual lease Iern
or 60 years
leasehold inprovenenIs shorIer oI residual lease Iern or
esIinaIed useIul liIe
Vehicles, equipnenI and IiIIings
1
3 Io 20 years
1
LquipnenI includes sIudio producIion and Iechnology asseIs.
!2%9*,2$"& +4 9..$&.
lroperIy, planI and equipnenI IhaI is subjecI Io
depreciaIion is reviewed Ior inpairnenI whenever evenIs or
changes in circunsIances indicaIe IhaI Ihe carrying anounI
nay noI be recoverable. lndicaIors oI inpairnenI nay
include changes in Iechnology and business perIornance.
;$8&*+" VH Q%$,9&*"? (..$&. 9"# U*93*7*&*$. 8+"&*")$#
!!"#$%"& ##(#!(!"#! )*++, -.+
!
"
#
$
%
&
'
#
(
)

+
$
,
'
#
&
-
&
#
.
&
$
/
0

1

2
,
$
#
.
&
"
'
3
(
4
$
#
5
'
#
6
.
3
%
$

1

7
"
3
.
3
%
"
.
8
(
+
$
(
,
'
3
(
"
9
"
8
"
&
0
:
'
;
$
#
3
.
3
%
$
RR;
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
!
"
#
$
#
%
"
$
&

(
)
$
)
*
+
*
#
)
,
-
.
*
/
.
"
*
0
!+#=2+$'[ =8)6$ )6A 2J45=:26$
lroperIy, planI and equipnenI can be analysed as Iollows.
lreehold land
and buildings
lnprovenenIs Io leasehold
land and buildings
Vehicles, equipnenI
and IiIIings ToIal
n
long
n
ShorI
n
Owned
n
linance leases
n n
Cost
AI 1 January 2011 52 52 20 225 15 364
AddiIions 5 39 44
AddiIions Iron acquisiIion 5 5
Disposals, reIirenenIs and reclassiIicaIions (1) 2 (2) (64) (1) (66)
At 31 December 2011 51 59 1S 205 14 347
AddiIions 18 33 2 53
PeclassiIicaIion Io inIangible asseIs (6) (6)
PeclassiIicaIion Io asseIs held Ior sale (37) (1) (8) (46)
Disposals and reIirenenIs (2) (21) (23)
At 31 December 2012 14 76 16 203 16 325
Depreciation
AI 1 January 2011 8 12 16 168 9 213
Charge Ior Ihe year 2 2 1 18 3 26
AccunulaIed depreciaIion Iron acquisiIion 5 5
Disposals, reIirenenIs and reclassiIicaIions (1) 1 (2) (61) (1) (64)
At 31 December 2011 9 15 15 130 11 1S0
Charge Ior Ihe year 1 2 1 20 3 27
lnpairnenI charge Ior Ihe year (see noIe 2.2) 5 5
PeclassiIicaIion Io asseIs held Ior sale (12) (1) (8) (21)
Disposals and reIirenenIs (1) (21) (22)
At 31 December 2012 3 16 15 121 14 169
Net book va|ue
At 31 December 2012 11 60 1 S2 2 156
AI 31 Decenber 2011 42 44 3 75 3 167
OI IoIal addiIions, 3 nillion relaIe Io acquisiIions nade in
Ihe year (2011. nil).
lncluded wiIhin Ihe book values above is expendiIure oI
38 nillion (2011. 27 nillion) on properIy, planI and
equipnenI IhaI are in Ihe course oI consIrucIion.
lncluded wiIhin disposals and reIirenenIs are neI
inpairnenIs oI nil (2011. 3 nillion) Io neI book value,
resulIing Iron a review oI Iangible asseIs Ior obsolescence
in Ihe period. The neI inpairnenI conprised 21 nillion oI
cosI and 21 nillion oI accunulaIed depreciaIion (2011. 67
nillion and 64 nillion respecIively) .
:9%*&97 8+22*&2$"&.
There are 10 nillion oI capiIal conniInenIs aI
31 Decenber 2012 (2011. 10 nillion) which prinarily relaIe
Io Ihe developnenI aI MediaCiIy, including Ihe new locaIion
Ior CoronaIion SIreeI, in ManchesIer.
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
RFG
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
;$8&*+" VH Q%$,9&*"? (..$&. 9"# U*93*7*&*$. 8+"&*")$#
SWS .6$)6T5&82 ),,2$,
Keeping it simp|e . . .
The Iollowing secIion shows Ihe non-physical asseIs
used by Ihe Group Io generaIe revenues and proIiIs.
These asseIs include brands, cusIoner conIracIs and
relaIionships, conIracIual arrangenenIs, licences,
soIIware developnenI, Iiln libraries and goodwill.
The cosI oI Ihese asseIs is Ihe anounI IhaI Ihe
Group has paid or, where Ihere has been a business
conbinaIion, Ihe Iair value oI Ihe speciIic inIangible
asseIs IhaI could be sold separaIely or which arise
Iron legal righIs. ln Ihe case oI goodwill, iIs cosI is Ihe
anounI Ihe Group has paid in acquiring a business over
and above Ihe Iair value oI Ihe individual asseIs and
liabiliIies acquired. The value oI goodwill is 'inIangible'
value IhaI cones Iron, Ior exanple, a uniquely sIrong
narkeI posiIion and Ihe ouIsIanding producIiviIy oI iIs
enployees.
The value oI inIangible asseIs, wiIh Ihe excepIion oI
goodwill, reduces over Ihe nunber oI years Ihe Group
expecIs Io use Ihe asseI, Ihe useIul econonic liIe,
via an annual anorIisaIion charge Io Ihe incone
sIaIenenI. Where Ihere has been a Iechnological
change or decline in business perIornance Ihe
DirecIors review Ihe value oI asseIs Io ensure Ihey
have noI Iallen below Iheir anorIised value. Should
an asseI's value Iall below iIs anorIised value an
addiIional one-oII inpairnenI charge is nade againsI
proIiI.
This secIion explains Ihe accounIing policies applied
and Ihe speciIic judgenenIs and esIinaIes nade by
Ihe DirecIors in arriving aI Ihe neI book value oI Ihese
asseIs.
E77#46$56T =#85752,
D++#C*77
Goodwill represenIs Ihe IuIure econonic beneIiIs IhaI
arise Iron asseIs IhaI are noI capable oI being individually
idenIiIied and separaIely recognised. The goodwill
recognised by Ihe Group has all arisen as a resulI oI business
conbinaIions.
Due Io changes in accounIing sIandards goodwill has been
calculaIed using Ihree diIIerenI neIhods depending on Ihe
daIe Ihe relevanI business was purchased.
Method 1: All business conbinaIions IhaI have occurred
since 1 January 2009 were accounIed Ior using Ihe
acquisiIion neIhod. Under Ihis neIhod, goodwill is
neasured as Ihe Iair value oI Ihe consideraIion IransIerred
(including Ihe recogniIion oI any non-conIrolling inIeresIs
oI Ihe business being boughI), less Ihe Iair value oI Ihe
idenIiIiable asseIs acquired and liabiliIies assuned,
all neasured aI Ihe acquisiIion daIe. Any conIingenI
consideraIion Io be IransIerred will be recognised aI Iair
value aI Ihe acquisiIion daIe. ConIingenI consideraIion
classiIied as an asseI or liabiliIy IhaI is a Iinancial insIrunenI
is neasured aI Iair value wiIh changes in Iair value
recognised in Ihe incone sIaIenenI. The deIerninaIion
oI Iair value is based on discounIed cash Ilows. The key
assunpIions Iake inIo consideraIion Ihe probabiliIy oI
neeIing each perIornance IargeI and Ihe discounI raIe.
Where less Ihan 100% oI a subsidiary is acquired, and call
and puI opIions are granIed over Ihe renaining inIeresI,
a non-conIrolling inIeresI is recognised in equiIy. A call
opIion is recognised as a derivaIive Iinancial insIrunenI,
carried aI Iair value. The puI opIion is recognised as a liabiliIy
wiIhin OIher payables, carried aI Ihe presenI value oI Ihe
puI opIion exercise price, and a corresponding charge is
included in Merger and OIher Peserves. Any subsequenI
reneasurenenI oI Ihe call opIion and Ihe puI opIion liabiliIy
is recognised wiIhin Iinance incone or cosI.
SubsequenI adjusInenIs Io Ihe Iair value oI neI asseIs
acquired can only be nade wiIhin 12 nonIhs oI Ihe
acquisiIion daIe, and only iI Iair values were deIernined
provisionally aI an earlier reporIing daIe. These adjusInenIs
are accounIed Ior Iron Ihe daIe oI acquisiIion.
AcquisiIions oI non-conIrolling inIeresIs are accounIed Ior
as IransacIions wiIh owners and IhereIore no goodwill is
recognised as a resulI oI such IransacIions. TransacIion cosIs
incurred in connecIion wiIh Ihose business conbinaIions,
such as legal Iees, due diligence Iees and oIher proIessional
Iees, are expensed as incurred.
!!"#$%"& ##(#!(!"#! )*++, -.+
!
"
#
$
%
&
'
#
(
)

+
$
,
'
#
&
-
&
#
.
&
$
/
0

1

2
,
$
#
.
&
"
'
3
(
4
$
#
5
'
#
6
.
3
%
$

1

7
"
3
.
3
%
"
.
8
(
+
$
(
,
'
3
(
"
9
"
8
"
&
0
:
'
;
$
#
3
.
3
%
$
RFR
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
!
"
#
$
#
%
"
$
&

(
)
$
)
*
+
*
#
)
,
-
.
*
/
.
"
*
0
Method 2: All business conbinaIions IhaI occurred beIween
1 January 2004 and 31 Decenber 2008 were accounIed
Ior using Ihe purchase neIhod in accordance wiIh llPS
3 'Business ConbinaIions (2004)'. Goodwill on Ihose
conbinaIions represenIs Ihe diIIerence beIween Ihe cosI
oI Ihe acquisiIion and Ihe Iair value oI Ihe idenIiIiable neI
asseIs acquired and did noI include Ihe value oI Ihe non-
conIrolling inIeresI. TransacIion cosIs incurred in connecIion
wiIh Ihose business conbinaIions, such as legal Iees, due
diligence Iees and oIher proIessional Iees, were included in
Ihe cosI oI acquisiIion.
Method 3: lor business conbinaIions prior Io 1 January
2004, goodwill is included aI iIs deened cosI, which
represenIs Ihe anounI recorded under UK GAAl aI IhaI
Iine less accunulaIed anorIisaIion up Io 31 Decenber
2003. The classiIicaIion and accounIing IreaInenI oI
business conbinaIions occurring prior Io 1 January 2004,
Ihe daIe oI IransiIion Io llPS, has noI been reconsidered as
perniIIed under llPS 1. Goodwill is sIaIed aI iIs recoverable
anounI being cosI less any accunulaIed inpairnenI losses
and is allocaIed Io cash-generaIing uniIs.
Q&0$, *"&9"?*37$ 9..$&.
OIher inIangible asseIs are Ihose which are idenIiIiable and
can be sold separaIely or which arise Iron legal righIs.
WiIhin lTV Ihere are Iwo Iypes oI inIangible asseIs. Ihose
acquired and Ihose IhaI have been inIernally generaIed
(such as soIIware licences and developnenI).
OIher inIangible asseIs acquired direcIly by Ihe Group
are sIaIed aI cosI less accunulaIed anorIisaIion. Those
separaIely idenIiIied inIangible asseIs acquired as parI oI a
business conbinaIion are shown aI Iair value aI Ihe daIe oI
acquisiIion less accunulaIed anorIisaIion.
The nain inIangible asseIs Ihe Group has valued are brands,
licences, conIracIual arrangenenIs, and cusIoner conIracIs
and relaIionships.
Lach class oI inIangible asseI's valuaIion neIhod on iniIial
recogniIion, anorIisaIion neIhod and esIinaIed useIul liIe
is seI ouI in Ihe Iable below.
Class oI inIangible asseI ValuaIion neIhod AnorIisaIion neIhod LsIinaIed useIul liIe
Brands Applying a royalIy raIe Io Ihe expecIed IuIure revenues
over Ihe liIe oI Ihe brand.
SIraighI-line up Io 11 years
CusIoner conIracIs
and relaIionships
LxpecIed IuIure cash Ilows Iron Ihose conIracIs and
relaIionships exisIing aI Ihe daIe oI acquisiIion are
esIinaIed. lI applicable, a conIribuIory charge is deducIed
Ior Ihe use oI oIher asseIs needed Io exploiI Ihe cash Ilow.
The neI cash Ilow is Ihen discounIed back Io presenI
value.
SIraighI-line up Io 6 years Ior
cusIoner conIracIs
5 Io 10 years Ior
cusIoner relaIionships
ConIracIual
arrangenenIs
LxpecIed IuIure cash Ilows Iron Ihose conIracIs exisIing aI Ihe
daIe oI acquisiIion are esIinaIed. lI applicable, a conIribuIory
charge is deducIed Ior Ihe use oI oIher asseIs needed Io exploiI
Ihe cash Ilow. The neI cash Ilow is Ihen discounIed back Io
presenI value.
SIraighI-line
up Io 10 years depending
on Ihe conIracI Ierns
licences SIarI-up basis oI expecIed IuIure cash Ilows exisIing aI
Ihe daIe oI acquisiIion. lI applicable, a conIribuIory charge is
deducIed Ior Ihe use oI oIher asseIs needed Io exploiI Ihe cash
Ilow. The neI cash Ilow is Ihen discounIed back Io presenI
value.
SIraighI-line 11 Io 17 years depending
on Iern oI licence
SoIIware licences and
developnenI*
lniIially aI cosI and subsequenIly aI cosI less accunulaIed
anorIisaIion.
SIraighI-line 1 Io 5 years
liln libraries lniIially aI cosI and subsequenIly aI cosI less accunulaIed
anorIisaIion.
Sun oI digiIs 20 years
* lnIernally generaIed soIIware developnenI cosIs in relaIion Io iIv.con are expensed as incurred.
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
RFF
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
;$8&*+" VH Q%$,9&*"? (..$&. 9"# U*93*7*&*$. 8+"&*")$#
DeIernining Ihe Iair value oI inIangible asseIs arising
on acquisiIion requires judgenenI. The DirecIors nake
esIinaIes regarding Ihe Iining and anounI oI IuIure cash
Ilows derived Iron exploiIing Ihe asseIs being acquired.
The DirecIors Ihen esIinaIe an appropriaIe discounI raIe
Io apply Io Ihe IorecasI cash Ilows. Such esIinaIes are
based on currenI budgeIs and IorecasIs, exIrapolaIed Ior
an appropriaIe period Iaking inIo accounI growIh raIes,
expecIed changes Io selling prices, operaIing cosIs and
Ihe expecIed useIul lives oI asseIs. JudgenenIs are also
nade regarding wheIher and Ior how long licences will be
renewed, Ihis drives our anorIisaIion policy Ior Ihose asseIs.
The DirecIors esIinaIe Ihe appropriaIe discounI raIe using
pre-Iax raIes IhaI reIlecI currenI narkeI assessnenIs oI Ihe
Iine value oI noney and Ihe risks speciIic Io Ihe asseIs or
businesses being acquired.
(2+,&*.9&*+"
AnorIisaIion is charged Io Ihe incone sIaIenenI over Ihe
esIinaIed useIul lives oI inIangible asseIs unless such lives
are judged Io be indeIiniIe. lndeIiniIe liIe asseIs, such as
goodwill, are noI anorIised buI are IesIed Ior inpairnenI aI
each year end.
!2%9*,2$"&
Goodwill is noI subjecI Io anorIisaIion and is IesIed
annually Ior inpairnenI and when circunsIances indicaIe
IhaI Ihe carrying value nay be inpaired.
OIher inIangible asseIs are subjecI Io anorIisaIion and are
reviewed Ior inpairnenI whenever evenIs or changes in
circunsIances indicaIe IhaI Ihe anounI carried in Ihe sIaIenenI
oI Iinancial posiIion is less Ihan iIs recoverable anounI.
DeIernining wheIher Ihe carrying anounI oI inIangible
asseIs has any indicaIion oI inpairnenI requires judgenenI.
Any inpairnenI is recognised in Ihe incone sIaIenenI.
An inpairnenI IesI is perIorned by assessing Ihe
recoverable anounI oI each asseI, or Ior goodwill, Ihe cash-
generaIing uniI (or group oI cash-generaIing uniIs) relaIed
Io Ihe goodwill. AsseIs are grouped aI Ihe lowesI levels Ior
which Ihere are separaIely idenIiIiable cash Ilows ('cash-
generaIing uniI' or 'CGU').
The recoverable anounI is Ihe higher oI an asseI's Iair value
less cosIs Io sell and 'value in use'. The value in use is based
on Ihe presenI value oI Ihe IuIure cash Ilows expecIed Io
arise Iron Ihe asseI.
GrowIh assunpIions derived Iron Ihe TransIornaIion llan
are noI included in Ihe esIinaIed IuIure cash Ilows used
as Ihe Group applies cauIious assunpIions Ior inpairnenI
IesIing.
LsIinaIes are used in deriving Ihese cash Ilows and Ihe
discounI raIe. Such esIinaIes reIlecI currenI narkeI
assessnenIs oI Ihe risks speciIic Io Ihe asseI and Ihe Iine
value oI noney. The esIinaIion process is conplex due Io
Ihe inherenI risks and uncerIainIies. lI diIIerenI esIinaIes
oI Ihe projecIed IuIure cash Ilows or a diIIerenI selecIion oI
an appropriaIe discounI raIe or long-Iern growIh raIe were
nade, Ihese changes could naIerially alIer Ihe projecIed
value oI Ihe cash Ilows oI Ihe asseI, and as a consequence
naIerially diIIerenI anounIs would be reporIed in Ihe
Iinancial sIaIenenIs.
lnpairnenI losses in respecI oI goodwill are noI reversed. ln
respecI oI asseIs oIher Ihan goodwill, an inpairnenI loss is
reversed iI Ihere has been a change in Ihe esIinaIes used Io
deIernine Ihe recoverable anounI. An inpairnenI loss is
reversed only Io Ihe exIenI IhaI Ihe asseI's carrying anounI
does noI exceed Ihe carrying anounI IhaI would have
been deIernined, neI oI depreciaIion or anorIisaIion, iI no
inpairnenI loss had been recognised.
!!"#$%"& ##(#!(!"#! )*++, -.+
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.6$)6T5&82 ),,2$,
lnIangible asseIs can be analysed as Iollows.
Goodwill
n
Brands
n
CusIoner
conIracIs
and
relaIionships
n
ConIracIual
arrangenenIs
n
licences
n
SoIIware
licences and
developnenI
n
liln libraries
and oIher
n
ToIal
n
Cost
AI 1 January 2011 3,365 173 328 121 54 79 4,120
AddiIions 14 10 24
Disposals (2) (2)
At 31 December 2011 3,379 173 32S 121 62 79 4,142
AddiIions 26 2 4 10 10 52
PeclassiIicaIion Iron Iangible asseIs 6 6
At 31 December 2012 3,405 175 332 10 121 7S 79 4,200
Amortisation and impairment
AI 1 January 2011 2,654 110 269 56 27 35 3,151
Charge Ior Ihe year 17 18 9 12 3 59
Disposals (2) (2)
At 31 December 2011 2,654 127 2S7 65 37 3S 3,20S
Charge Ior Ihe year 16 19 9 11 2 57
lnpairnenIs 3 3
At 31 December 2012 2,654 143 306 74 4S 43 3,26S
Net book va|ue
At 31 December 2012 751 32 26 10 47 30 36 932
AI 31 Decenber 2011 725 46 41 56 25 41 934
Goodwill, brands, cusIoner conIracIs and conIracIual
arrangenenIs have increased by 26 nillion, 2 nillion, 4
nillion and 10 nillion respecIively in 2012 Iollowing Ihe
acquisiIions oI Iour producIion conpanies, as deIailed in
noIe 3.4 (2011. 14 nillion increase due Io Ihe acquisiIion oI
Channel Television loldings liniIed, nil oIher inIangibles).
lncluded wiIhin Ihe book values above is expendiIure oI 6
nillion (2011. 10 nillion) on soIIware IhaI is in Ihe course oI
developnenI.
During Ihe year, conpuIer soIIware wiIh a value oI 6 nillion
was idenIiIied as being held wiIhin properIy, planI and
equipnenI and was subsequenIly reclassiIied Io inIangible
asseIs.
Q##AI588 5:=)5+:26$ $2,$,
The Iollowing CGUs represenI Ihe carrying anounIs oI
goodwill.
2012
m
2011
n
BroadcasI & Online 342 342
SDN 76 76
lTV SIudios 333 307
751 725
There has been no inpairnenI charge Ior Ihe year (2011. nil).
When assessing inpairnenI, Ihe recoverable anounI
oI each CGU is based on value in use calculaIions. These
calculaIions require Ihe use oI esIinaIes, speciIically. pre-Iax
cash Ilow projecIions, long-Iern growIh raIes, and a pre-Iax
narkeI discounI raIe.
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
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RF<
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
;$8&*+" VH Q%$,9&*"? (..$&. 9"# U*93*7*&*$. 8+"&*")$#
Cash Ilow projecIions are based on Ihe Group's currenI
Iive-year plan. Beyond Ihe Iive-year plan Ihese projecIions
are exIrapolaIed using an esIinaIed long-Iern growIh
raIe oI 1%2.5% (2011. 1%2.5%) depending on Ihe CGU.
The growIh raIes used are consisIenI wiIh Ihe long-Iern
average growIh raIes Ior Ihe indusIry and are appropriaIe
because Ihese are long-Iern businesses.
The discounI raIe has been revised Ior each CGU Io reIlecI
Ihe laIesI narkeI assunpIions Ior Ihe Pisk-lree raIe, Ihe
LquiIy Pisk lreniun and Ihe neI cosI oI debI. There is
currenIly no reasonably possible change in discounI raIe IhaI
would reduce Ihe headroon in any CGU Io zero.
I,+9#89.& P Q"7*"$
The goodwill in Ihis CGU arose as a resulI oI Ihe acquisiIion
oI broadcasIing businesses since 1999, Ihe largesI oI which
were Ihe acquisiIion by Granada oI UniIed News and Media's
broadcasI businesses in 2000 and Ihe nerger oI CarlIon and
Granada in 2004 Io Iorn lTV plc.
No inpairnenI charge arose in Ihe BroadcasI & Online CGU
during Ihe course oI 2012 (2011. nil).
The nain assunpIions on which Ihe IorecasI cash Ilow
projecIions Ior Ihis CGU are based include. Ihe share oI Ihe
Ielevision adverIising narkeI, share oI connercial inpacIs,
progranne and oIher cosIs, and Ihe pre-Iax narkeI
discounI raIe.
The key assunpIion in assessing Ihe recoverable anounI
oI BroadcasI & Online goodwill is Ihe size oI Ihe Ielevision
adverIising narkeI. ln Iorning iIs assunpIions abouI
Ihe Ielevision adverIising narkeI, Ihe Group has used a
conbinaIion oI long-Iern Irends, indusIry IorecasIs and
in-house esIinaIes, which place greaIer enphasis on recenI
experience. lndusIry consensus is IlaI Ior 2013 and 3.0% Ior
2014. The inpairnenI IesI also assuned IhaI lTV renews
iIs broadcasIing licences beIore 2014. No inpairnenI was
idenIiIied. Also as parI oI Ihe review, cauIious assunpIions
oI -5% were applied Ior boIh years Io Ihe indusIry consensus
Ior Ihe purposes oI Ihe inpairnenI IesI, again wiIh no
inpairnenI idenIiIied.
A pre-Iax narkeI discounI raIe oI 12.3% (2011. 11.6%) has
been used in discounIing Ihe projecIed cash Ilows.
The DirecIors believe IhaI currenIly no reasonably possible
change in Ihese assunpIions would reduce Ihe headroon in
Ihis CGU Io zero.
;RL
Goodwill was recognised when Ihe Group acquired SDN (Ihe
licence operaIor Ior DTT MulIiplex A) in 2005. lI represenIed
Ihe wider sIraIegic beneIiIs oI Ihe acquisiIion speciIic Io Ihe
Group, principally Ihe enhanced abiliIy Io pronoIe lreeview as
a plaIIorn, business relaIionships wiIh Ihe channels which are
on MulIiplex A and addiIional capaciIy available Iron 2010.
No inpairnenI charge arose on Ihe SDN goodwill during Ihe
course oI 2012 (2011. nil).
The nain assunpIions on which Ihe IorecasI cash Ilows
are based are incone Io be earned Iron nediun-Iern
conIracIs, Ihe narkeI price oI available nulIiplex video
sIreans in Ihe period up Io and beyond digiIal swiIchover
and Ihe pre-Iax narkeI discounI raIe. These assunpIions
have been deIernined by using a conbinaIion oI currenI
conIracI Ierns, recenI narkeI IransacIions and in-house
esIinaIes oI video sIrean availabiliIy and pricing.
A pre-Iax narkeI discounI raIe oI 14.4% (2011. 12.7%) has
been used in discounIing Ihe projecIed cash Ilows.
The DirecIors believe IhaI currenIly no reasonably possible
change in Ihe incone and availabiliIy assunpIions would
reduce Ihe headroon in Ihis CGU Io zero.
!56 ;&)#*+.
The goodwill Ior lTV SIudios arose as a resulI oI Ihe
acquisiIion oI producIion businesses since 1999, Ihe largesI
oI which were Ihe acquisiIion by Granada oI UniIed News
and Media's producIion businesses in 2000 and Ihe nerger
oI CarlIon and Granada in 2004 Io Iorn lTV plc.
No inpairnenI charge arose in Ihe lTV SIudios CGU during
Ihe course oI 2012 (2011. nil).
The key assunpIions on which Ihe IorecasI cash Ilows were
based include revenue (including Ihe lTV SIudios share oI
lTV ouIpuI, growIh in connissions and hours produced),
nargin growIh and Ihe pre-Iax narkeI discounI raIe. These
assunpIions have been deIernined by using a conbinaIion
oI exIrapolaIion oI hisIorical Irends wiIhin Ihe business,
indusIry esIinaIes and in-house esIinaIes oI growIh raIes in
all narkeIs.
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A pre-Iax narkeI discounI raIe oI 12.9% (2011. 12.4%) has
been used in discounIing Ihe projecIed cash Ilows.
The DirecIors believe IhaI currenIly no reasonably possible
change in Ihe incone and availabiliIy assunpIions would
reduce Ihe headroon in Ihis CGU Io zero.
SW< E7J45,5$5#6,
Keeping it simp|e . . .
The Iollowing secIion ouIlines whaI Ihe Group has
acquired in Ihe year.
E7J45,5$5#6,
During 2012 Ihe Group conpleIed Iour acquisiIions oI
which Gurney lroducIions llC ('Gurney') was Ihe nosI
signiIicanI. The Iollowing secIions provide a sunnary oI
each acquisiIion.
D),"$B >,+#)8&*+".
On 31 Decenber 2012, Ihe Group acquired 61.5% oI Ihe
nenbership inIeresI in Gurney, a US producIions conpany
specialising in IacIual enIerIainnenI. A non-conIrolling
inIeresI was recognised over Ihe renaining equiIy.
ConsideraIion oI 25 nillion ($40 nillion) was saIisIied in
cash, and a call and puI opIion granIed over Ihe renaining
38.5% equiIy. The Group's call opIion is exercisable aIIer
Ihe IinalisaIion oI Ihe 2015 accounIs, wiIh Ihe vendor's puI
opIions exercisable Iollowing Ihe close oI Ihe call period and
in 2018. The call opIion has been recognised aI nil since Ihe
exercise price would resulI in Ihe acquisiIion oI Ihe renaining
38.5% inIeresI aI Iair value. The discounIed puI opIion liabiliIy
('opIions') aI Ihe acquisiIion daIe was 12 nillion.
The naxinun consideraIion which Ihe Group could pay
Ior Ihe renaining 38.5% equiIy inIeresI is 44 nillion
($71 nillion, undiscounIed). linal paynenI will be enIirely
dependenI on IuIure perIornance oI Ihe business.
The addiIion oI Gurney IiIs wiIh Ihe Group's sIraIegy oI
building a sIrong inIernaIional conIenI business. lI is Ihe
Group's view IhaI Ihe acquisiIion will sIrengIhen and
conplenenI lTV's exisIing posiIion as a producer Ior najor
US Ielevision neIworks. The acquisiIion will Iorn parI oI
Ihe lTV SIudios operaIing segnenI. lnIangibles, being Ihe
value placed on brands, cusIoner conIracIs and conIracIual
arrangenenIs, oI 8 nillion were idenIiIied. Goodwill oI 20
nillion represenIs Ihe value placed on Ihe opporIuniIy Io
expand Ihe Group's progranne oIIering in Ihe UniIed SIaIes
and Ihe assenbled workIorce oI creaIive IalenI who will
develop IhaI conIenI. Goodwill is expecIed Io be deducIible
Ior Iax purposes.
The Group will consolidaIe all oI Gurney's earnings and
will reassess Ihe Iair value oI Ihe liabiliIy Io Ihe sellers aI
each reporIing daIe, wiIh changes in Iair value reporIed
wiIhin Iinancing cosIs on Ihe incone sIaIenenI, adjusIed
Ior in deIernining adjusIed proIiI. The opIions give rise Io
a IurIher 3 nillion has been IreaIed as posI-conbinaIion
renuneraIion and will be accrued over Ihe liIe oI Ihe
opIion and reporIed wiIhin excepIional iIens relaIing Io
acquisiIions in Ihe incone sIaIenenI.
;+ 5$7$<*.*+"
On 22 AugusI 2012, Ihe Group acquired 100% oI Ihe share
capiIal oI So Television liniIed ('So TV'), an enIerIainnenI
and conedy producIions conpany based in Ihe UK. lniIial
consideraIion oI 10 nillion was paid. The Group also agreed Io
IurIher perIornance-based consideraIion oI up Io a naxinun
oI 7 nillion (undiscounIed), which has been IreaIed as
posI-conbinaIion renuneraIion and will be accrued over Ihe
earnouI period and will be reporIed wiIhin excepIional iIens
relaIing Io acquisiIions in Ihe incone sIaIenenI.
So TV is anoIher acquisiIion IhaI IiIs wiIh Ihe Group's
sIraIegy Io creaIe world class conIenI Ior nulIiple
plaIIorns, Iree and pay, boIh in Ihe UK and inIernaIionally.
The acquisiIion will Iorn parI oI Ihe lTV SIudios operaIing
segnenI. lnIangibles, being Ihe value placed on key
conIracIual arrangenenIs, oI 8 nillion were idenIiIied.
Goodwill oI 3 nillion represenIs Ihe value placed on
Ihe opporIuniIy Io diversiIy and grow Ihe conIenI and
IornaIs produced by Ihe Group. The goodwill arising on Ihe
acquisiIion is noI expecIed Io be deducIible Ior Iax purposes.
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
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!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
1$#*98*,8). 9"# 59,*"9&97+
On 31 July and 8 OcIober 2012, Ihe Group acquired 100% oI
Ihe share capiIal oI Norwegian conpany Mediacircus AS and
linnish conpany TarinaIalo OY respecIively.
ln IoIal, consideraIion oI 3 nillion was paid in cash, and a
conIingenI consideraIion oI 1 nillion will be payable based
on Ihe IuIure perIornance oI Ihe businesses. The naxinun
undiscounIed consideraIion, which is based on perIornance
oI Ihe business, is 3 nillion. An esIinaIe based on projecIed
perIornance aI Ihe Iine oI acquisiIion, along wiIh Ihe
iniIial consideraIion paid, was included in Ihe acquisiIion
accounIing and calculaIion oI goodwill. SubsequenI revisions
Io Ihe conIingenI consideraIion will be reporIed wiIhin
Iinancing cosIs on Ihe incone sIaIenenI, and adjusIed Ior in
deIernining adjusIed proIiI.
lurIher perIornance-based consideraIion oI up Io a
naxinun oI 4 nillion has been accounIed Ior as posI-
conbinaIion renuneraIion as iI is considered Io be linked Io
enploynenI condiIions. CosIs accrued in relaIion Io Ihis will
be included in excepIional iIens relaIing Io acquisiIions in
Ihe incone sIaIenenI.
BoIh acquisiIions will exIend lTV SIudios' producIion
capaciIy in Ihe Nordics. lTV SIudios already has a presence
in Sweden and boIh conpanies will Iorn parI oI Ihe lTV
SIudios operaIing segnenI. lnIangibles, being Ihe value
placed on key conIracIual arrangenenIs, were idenIiIied.
The goodwill oI 3 nillion arising Iron Ihese acquisiIions
represenIs Ihe operaIional beneIiIs Io Ihe Group Iron
expanding iIs operaIions in Ihe Nordics, a key Iocus area Ior
lTV SIudios. The goodwill arising on Ihe acquisiIions is noI
expecIed Io be deducIible Ior Iax purposes.
AcquisiIion cosIs largely conprise legal and Iinancial
diligence Iees. ln 2012, 2 nillion oI cosIs relaIing Io Ihe
acquisiIion were expensed as excepIional iIens relaIing Io
acquisiIions in Ihe incone sIaIenenI (see noIe 2.2). OI Ihese
cosIs, 1 nillion relaIes Io Ihe acquisiIion oI Gurney.
U??27$ #? )7J45,5$5#6
The acquisiIions noIed above had Ihe Iollowing inpacI on
Ihe Group asseIs and liabiliIies.
n
Pecognised values on acquisiIion
Gurney OIher
2012
Tota|
2011
ToIal
Consideration
transferred:
lniIial consideraIion
(neI oI cash acquired) 25 13 3S
ConIingenI consideraIion 1 1
Tota| consideration 25 14 39
Fair va|ue of net assets
acquired (Note A):
lroperIy, planI and
equipnenI 3 3
lnIangible asseIs 8 8 16
Trade and oIher
receivables 7 3 10 2
Borrowings - (14)
Trade and oIher payables (1) (3) (4) (1)
CurrenI Iax liabiliIies - (1)
Fair va|ue of net assets 17 8 25 (14)
Non-conIrolling inIeresI
neasured aI Iair value 12 12
Goodwi|| 20 6 26 14
Cther information:
lresenI value oI Ihe
liabiliIy on opIions 12 12
lresenI value oI Ihe
expecIed renuneraIion
paynenI 3 6 9
Contributions to the
Group's performance:
Pevenue - acquisiIion Io
daIe 6 6
lroIiI aIIer Iax -
acquisiIion Io daIe -
Pevenue - January Io
Decenber 28 19 47 3
lroIiI aIIer Iax - January Io
Decenber 4 2 6 (2)
NoIe A. lrovisional deIails oI Iair value oI neI asseIs acquired are seI ouI in Ihe Iable above.
The analysis is provisional and anendnenIs nay be nade Io Ihese Igures in Ihe
12 nonIhs Iollowing Ihe daIe oI Ihe acquisiIion.
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lair value oI Ihe consideraIion IransIerred conprises Ihe
iniIial cash paid Io Ihe sellers and an esIinaIe Ior any IuIure
paynenIs Ihe Group nay be liable Io pay, based on IuIure
perIornance oI Ihe business. This laIIer anounI is classiIied
as conIingenI consideraIion.
The IoIal expecIed renuneraIion paynenI reIlecIs Ihe presenI
value oI Ihe IuIure anounI Ihe Group esIinaIes iI will have Io
pay Ihe sellers based on enploynenI condiIions seI ouI in Ihe
purchase agreenenI (separaIe Io any enploynenI conIracI).
This paynenI does noI Iorn parI oI Ihe calculaIion oI goodwill.
E7J45,5$5#6, 56 FGRR
On 22 Novenber 2011, Ihe Group acquired 100% oI Ihe
ordinary shares in Channel Television loldings liniIed,
holder oI Ihe Channel 3 licence in Ihe Channel lslands,
as parI oI Ihe sinpliIcaIion oI Ihe Group's neIwork
arrangenenIs. ConsideraIion oI 1 saIisIed in cash was paid
along wiIh repaynenI oI 14 nillion oI loans Io Ihe vendor.
Goodwill arising on acquisiIion represenIs Ihe operaIional
beneIIs Io Ihe Group Iron sinpliIying iIs neIwork
arrangenenIs.
SWN E,,2$, "28A ?#+ ,)82 )6A A5,=#,)8,
Keeping it simp|e . . .
The Iollowing secIion ouIlines whaI Ihe Group is eiIher
holding Ior sale or has disposed oI in Ihe year.
E77#46$56T =#85752,
Non-currenI asseIs or disposal groups are classiIied as held
Ior sale iI Iheir carrying anounI will be recovered principally
Ihrough sale, raIher Ihan conIinuing use, Ihey are available
Ior innediaIe sale, and Ihe sale is highly probable. A disposal
group consisIs oI asseIs IhaI are Io be disposed oI, by sale or
oIherwise, in a single IransacIion IogeIher wiIh Ihe direcIly
associaIed liabiliIies. The Group includes goodwill acquired
in a business conbinaIion iI Ihe disposal group is a cash-
generaIing uniI Io which goodwill has been allocaIed.
On iniIial classiIicaIion as held Ior sale, non-currenI asseIs
or conponenIs oI a disposal group are reneasured in
accordance wiIh Ihe Group's accounIing policies. ThereaIIer,
generally Ihe asseIs or disposal groups are neasured aI Ihe
lower oI Iheir carrying anounI and Iair value less cosIs Io
sell. Any inpairnenI on a disposal group is IirsI allocaIed Io
goodwill and Ihen Io renaining asseIs and liabiliIies on a pro
raIa basis, excepI Io progranning righIs and oIher invenIory,
Iinancial asseIs and deIerred Iax asseIs, which conIinue Io be
neasured in accordance wiIh Ihe Group's accounIing policies.
lnpairnenI on iniIial classiIicaIion as held Ior sale and
subsequenI gains or losses on reneasurenenI are recognised
in Ihe incone sIaIenenI. Gains are noI recognised in excess
oI any cunulaIive inpairnenI.
No anorIisaIion or depreciaIion is charged on non-currenI
asseIs (including Ihose in disposal groups) classiIied as
held Ior sale. AsseIs classiIied as held Ior sale are disclosed
separaIely on Ihe Iace oI Ihe sIaIenenI oI Iinancial posiIion
and classiIied as currenI asseIs or liabiliIies, wiIh disposal
groups being separaIed beIween asseIs held Ior sale and
liabiliIies held Ior sale.
@5,=#,)8,
There were no signiIicanI disposals during 2012.
On 25 March 2011 Ihe Group disposed oI iIs long leasehold
inIeresI in properIy aI BedIord Ior a IoIal consideraIion oI 2
nillion resulIing in an innaIerial gain on sale. This properIy
was included wiIhin asseIs held Ior sale in 2010 and 2011 up
Io Ihe poinI oI sale.
E,,2$, "28A ?#+ ,)82
The novenenI in asseIs held Ior sale since 1 January 2012 is
sunnarised in Ihe Iable below.
2012
m
AI 1 January 2012 -
Disposal oI properIies held Ior sale -
Property rec|assified to he|d for sa|e 25
At 31 December 2012 25
During Ihe year Ihe Group began acIively narkeIing cerIain
Ireehold properIies in ManchesIer. The reclassiIicaIion Io held
Ior sale Iollows Ihe Group's decision Io relocaIe Io a new siIe
aI Media CiIy. Disposal oI Ihe properIies is expecIed wiIhin
Ihe nexI 12 nonIhs. The properIies, and Iheir relaIed IiIIings,
were IransIerred Iron properIy, planI and equipnenI aI Iair
value oI 25 nillion, resulIing in an inpairnenI oI 5 nillion.
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
RFP
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
SWH !+#>5,5#6,
Keeping it simp|e . . .
A provision is recognised by Ihe Group where an
obligaIion exisIs, relaIing Io evenIs in Ihe pasI and iI is
probable IhaI cash will be paid Io seIIle iI.
A provision is nade where Ihe Group is noI cerIain how
nuch cash will be required Io seIIle a liabiliIy, so an
esIinaIe is required. The nain esIinaIes relaIe Io Ihe
cosI oI holding properIies IhaI are no longer in use by
Ihe Group, Ihe likelihood oI seIIling legal clains and
conIracIs Ihe Group has enIered inIo IhaI are now
unproIiIable.
E77#46$56T =#85752,
A provision is recognised in Ihe sIaIenenI oI Iinancial
posiIion when Ihe Group has a presenI legal or consIrucIive
obligaIion arising Iron pasI evenIs, iI is probable cash
will be paid Io seIIle iI and Ihe anounI can be esIinaIed
reliably. lrovisions are deIernined by discounIing Ihe
expecIed IuIure cash Ilows by a raIe IhaI reIlecIs currenI
narkeI assessnenIs oI Ihe Iine value oI noney and Ihe
risks speciIic Io Ihe liabiliIy. The unwinding oI Ihe discounI is
recognised as a Iinancing cosI in Ihe incone sIaIenenI. The
value oI Ihe provision is deIernined based on assunpIions
and esIinaIes in relaIion Io Ihe anounI and Iining oI acIual
cash Ilows which are dependenI on IuIure evenIs.
!+#>5,5#6,
The novenenIs in provisions during Ihe year are as Iollows.
ConIracI
provisions
n
PesIruc-
Iuring
provisions
n
lroperIy
provisions
n
OIher
provisions
n
ToIal
n
AI 1 January 2012 10 2 6 15 33
AddiIion 5 5 4 14
UIilised (5) (3) (2) (10)
At 31 December 2012 10 4 S 15 37
lrovisions oI 25 nillion are classiIied as currenI liabiliIies
(2011. 24 nillion). Unwind oI Ihe discounI is nil in 2012 and
2011.
ConIracI provisions conprise onerous sporIs righIs
conniInenIs IhaI are expecIed Io be uIilised over Ihe
renaining conIracI period. OIher conIracI provisions relaIe
Io onerous conniInenIs on Iransnission inIrasIrucIure.
lroperIy provisions principally relaIe Io onerous lease
conIracIs due Io enpIy space creaIed by Ihe ongoing
review and raIionalisaIion oI Ihe Group's properIy porIIolio.
UIilisaIion oI Ihe provision will be over Ihe anIicipaIed liIe oI
Ihe leases or earlier iI exiIed.
OIher provisions oI 15 nillion prinarily relaIe Io poIenIial
liabiliIies IhaI nay arise as a resulI oI Boxclever having been
placed inIo adninisIraIion, nosI oI which relaIe Io pension
arrangenenIs. On 21 Decenber 2011, Ihe DeIerninaIions
lanel oI The lensions PegulaIor deIernined IhaI linancial
SupporI DirecIions ('lSD') should be issued againsI cerIain
conpanies wiIhin Ihe Group in relaIion Io Ihe Boxclever
pension schene. The Group innediaIely lodged an appeal
againsI Ihis decision wiIh Ihe Upper Tribunal. An lSD would
require Ihe Conpany Io puI in place Iinancial supporI Ior Ihe
Boxclever schene, however, iI cannoI be issued during Ihe
period oI Ihe appeal. ln Spring 2012, Ihe Boxclever TrusIees
joined Ihe case as an inIeresIed parIy and subniIIed Iheir
sIaIenenI oI case. The Group subniIIed a reply in OcIober
2012. The appeal process is ongoing. While Ihere is a wide
range oI poIenIial ouIcones, Ihe DirecIors obIained leading
counsel's opinion and exIensive legal advice and conIinue Io
believe IhaI Ihe provision held is adequaIe.
;$8&*+" VH Q%$,9&*"? (..$&. 9"# U*93*7*&*$. 8+"&*")$#
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SWO !26,5#6,
Keeping it simp|e . . .
The Group has previously oIIered iIs enployees Ihe
opporIuniIy Io parIicipaIe in a nunber oI deIined beneIiI
schenes, Ihese are now closed Io new nenbers. The lTV
lension Schene (Ihe Schene) consisIs oI Ihree secIions,
A, B and C. SecIion A oI Ihe Schene is considerably larger
Ihan Ihe oIher secIions. The Group is required Io disclose
Ihe neI oI iIs deIined beneIiI pension asseIs and liabiliIies
in Ihe SIaIenenI oI linancial losiIion. ln Ihe evenI oI a
neI liabiliIy Ihe DirecIors are obliged Io deIernine how
Ihis deIiciI will be addressed.
The Group conIinues Io oIIer enployees deIined
conIribuIion pension schenes and where Iaken up
nakes paynenIs inIo Ihis schene on Iheir behalI.
ln Ihis secIion we explain Ihe accounIing policies
governing Ihe Group's pension schenes, Iollowed by
analysis oI Ihe deIiciI on Ihe deIined beneIiI pension
schene and how Ihis has been calculaIed. ln addiIion,
we have placed IexI boxes Io explain sone oI Ihe
Iechnical Ierns used in Ihe disclosure.
E77#46$56T =#85752,
R$4*"$# 8+"&,*3)&*+" .80$2$.
ObligaIions under Ihe Group's deIined conIribuIion schenes
are recognised as an operaIing cosI in Ihe incone sIaIenenI
as incurred.
R$4*"$# 3$"$4*& .80$2$.
The Group's obligaIion in respecI oI deIined beneIiI pension
schenes are calculaIed separaIely Ior each schene by
esIinaIing Ihe anounI oI IuIure beneIiI IhaI enployees
have earned in reIurn Ior Iheir service in Ihe currenI and
prior periods. ThaI beneIiI is discounIed Io deIernine iIs
presenI value and Ihe Iair value oI schene asseIs is Ihen
deducIed. The discounI raIe used is Ihe yield aI Ihe valuaIion
daIe on high qualiIy corporaIe bonds, IhaI exacIly naIch Ihe
Iining oI Ihe expecIed beneIiI paynenIs over IuIure years.
The Group Iakes advice Iron independenI acIuaries relaIing
Io Ihe appropriaIeness oI Ihe assunpIions which include
liIe expecIancy oI nenbers, expecIed salary and pension
increases, inIlaIion and Ihe reIurn on schene asseIs. lI is
inporIanI Io noIe IhaI conparaIively snall changes in
Ihe assunpIions used nay have a signiIicanI eIIecI on Ihe
incone sIaIenenI and sIaIenenI oI Iinancial posiIion.
The liabiliIies oI Ihe deIined beneIiI schenes are neasured
by discounIing Ihe besI esIinaIe oI IuIure cash Ilows Io
be paid using Ihe projecIed uniI neIhod. This neIhod is an
accrued beneIiIs valuaIion neIhod IhaI nakes allowance
Ior projecIed earnings. These calculaIions are perIorned by
a qualiIied acIuary.
AcIuarial gains and losses are recognised in Iull in Ihe
period in which Ihey arise Ihrough Ihe SIaIenenI oI
Conprehensive lncone.
An unIunded schene in relaIion Io previous DirecIors is
accounIed Ior under lAS 19. This is securiIised by asseIs held
ouIside oI Ihe lTV lension schene in Ihe Iorn oI gilIs and
included wiIhin cash and cash equivalenIs.
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
RSG
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
;$8&*+" VH Q%$,9&*"? (..$&. 9"# U*93*7*&*$. 8+"&*")$#
50$ D,+)%-. %$".*+" .80$2$.
Keeping it simp|e . . .
Under deIined conIribuIion schenes, Ihe Group pays Iixed conIribuIions inIo a separaIe Iund on behalI oI Ihe enployee
and has no IurIher obligaIions Io enployees. The risks and rewards associaIed wiIh Ihis Iype oI schene are assuned by Ihe
nenbers raIher Ihan Ihe Group. lI is Ihe nenber's responsibiliIy Io nake invesInenI decisions relaIing Io Iheir reIirenenI
beneIiIs.
ln a deIined beneIiI schene, nenbers receive cash paynenIs aI and in reIirenenI, Ihe value oI which is dependenI on
IacIors such as salary and lengIh oI service. The Group underwriIes invesInenI, norIaliIy and inIlaIion risks necessary Io
neeI Ihese obligaIions. ln Ihe evenI oI poor reIurns Ihe Group needs Io address Ihis Ihrough a conbinaIion oI increased
levels oI conIribuIion or by naking adjusInenIs Io Ihe schenes. Schenes can be Iunded, where regular cash conIribuIions
are nade by Ihe enployer inIo a Iund which is invesIed, or unIunded, where no regular noney or asseIs are required Io be
puI aside Io cover IuIure paynenIs.
The Group nakes conIribuIions Io Ihe lTV lension Schene, a separaIe IrusIee-adninisIered Iund IhaI is noI consolidaIed
in Ihese Iinancial sIaIenenIs, buI is reIlecIed on Ihe deIined beneIiI pension deIiciI line on Ihe sIaIenenI oI Iinancial
posiIion. lI is Ihe responsibiliIy oI Ihe TrusIee Io nanage and invesI Ihe asseIs oI Ihe schenes. The TrusIee is required Io
acI in Ihe besI inIeresI oI Ihe nenbers. The appoinInenI oI IrusIees is deIernined by Ihe schene's docunenIaIion.
ln Ihe unIunded schene Ihe Group is responsible Ior neeIing pension obligaIions as Ihey Iall due.
The Iollowing secIion ouIlines Ihe key elenenIs oI Ihe Group's deIined conIribuIion and deIined beneIiI schenes
during Ihe year and as aI 31 Decenber 2012.
Dehned contribution schemes
ToIal conIribuIions recognised as an expense in relaIion Io
deIined conIribuIion schenes during 2012 were 9 nillion (2011.
8 nillion). This is Ihe deIaulI schene Ior all new enployees.
Dehned beneht schemes
The Group's nain schene was Iorned Iron a nerger oI
a nunber oI schenes on 31 January 2006. The level oI
reIirenenI beneIiI is principally based on pensionable
salary aI reIirenenI. The Group's nain schene consisIs
oI Ihree secIions, A, B and C. The laIesI Iriennial valuaIions
oI secIions A, B and C were underIaken as aI 1 January
2011 by an independenI acIuary appoinIed by Ihe TrusIee oI
Ihe lTV lension Schene and agreed in 2012. The nexI Iriennial
valuaIion oI secIions A, B and C will be no laIer Ihan as aI
1 January 2014. The Group will noniIor Iunding levels annually.
50$ #$4*"$# 3$"$4*& %$".*+" #$4*8*&
The deIined beneIiI pension deIiciI aI 31 Decenber 2012
was 551 nillion (2011. 390 nillion).
The asseIs and liabiliIies oI Ihe schenes are recognised in
Ihe ConsolidaIed SIaIenenI oI linancial losiIion and shown
wiIhin non-currenI liabiliIies. The IoIals recognised in Ihe
currenI and previous years are.
2012
m
2011
n
2010
n
2009
n
2008
n
ToIal deIined beneIiI
schene obligaIions (3,244) (3,036) (2,746) (2,687) (2,339)
ToIal deIined beneIiI
schene asseIs 2,693 2,646 2,433 2,251 2,161
NeI anounI
recognised wiIhin
Ihe consolidaIed
sIaIenenI oI Iinancial
posiIion (551) (390) (313) (436) (178)
(##,$..*"? &0$ #$4*8*&
The sIaIuIory Iunding objecIive is IhaI a Iunded schene
has suIIicienI and appropriaIe asseIs Io pay iIs beneIiIs as
Ihey Iall due. This is a long-Iern IargeI. luIure conIribuIions
will always be seI aI leasI aI Ihe level required Io saIisIy Ihe
sIaIuIory Iunding objecIive. The general principles adopIed by
Ihe TrusIee are IhaI Ihe assunpIions used, Iaken as a whole,
will be suIIicienIly prudenI Ior pensions and beneIiIs already in
paynenI Io conIinue Io be paid, and Io reIlecI Ihe conniInenIs
which will arise Iron nenbers' accrued pension righIs.
The levels oI ongoing conIribuIions Io Ihe deIined beneIiI
schenes are based on Ihe currenI service cosIs (as assessed
by Ihe schene TrusIee) and Ihe expecIed IuIure cash Ilows
oI Ihe schenes. Nornal enployer conIribuIions in 2013
Ior currenI service are expecIed Io be in Ihe region oI 9
nillion (2012. 10 nillion) assuning currenI conIribuIion
raIes conIinue as agreed wiIh Ihe TrusIee. Based on Ihe
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agreenenIs currenIly in Iorce, Ihe Iollowing deIiciI Iunding
paynenIs are expecIed Ior IorIhconing years.
ln 2013 Ihe Group expecIs Io nake deIiciI Iunding
conIribuIions oI 79 nillion (72 nillion was paid in 2012)
conprised as Iollows.
- deIciI Iunding conIribuIion Io SecIion A oI 40 nillion,
- IoIal annual deIciI Iunding conIribuIions Io SecIions B
and C oI 5.5 nillion,
- 22 nillion, being 10% oI Ihe Group's LBlTA beIore
excepIional iIens IhaI exceeds Ihe 300 nillion Ihreshold,
- 11 nillion oI annual deIciI conIribuIions as a resulI oI
Ihe SDN pension parInership. Under Ihe parInership
arrangenenIs, Ihe Group has conniIIed Io naking a
paynenI Io Ihe nain secIion oI Ihe Schene oI up Io
200 nillion in 2022, iI and Io Ihe exIenI IhaI iI renains
in deIciI aI IhaI Iine.
The Group esIinaIes Ihe average duraIion oI iIs UK schene's
liabiliIies Io be 15 years (2011. 15 years).
The renaining secIions provide IurIher deIail oI Ihe value oI
schene asseIs and liabiliIies, how Ihese are accounIed Ior
and Ihe inpacI on Ihe incone sIaIenenI.
5+&97 #$4*"$# 3$"$4*& .80$2$ +37*?9&*+".
Keeping it simp|e . . .
The deIined beneIiI obligaIion (Ihe pension schene liabiliIies) nay change due Io Ihe Iollowing.
- CurrenI service cosI/(crediI) changes in Ihe presenI value oI Ihe obligaIion aIIribuIable Io Ihe nenbers' service in
Ihe currenI period. This is charged Io operaIing cosIs in Ihe incone sIaIenenI.
- CurIailnenI (losses)/gains Ihese occur when Ihe Conpany is denonsIrably conniIIed Io anend a schene so IhaI
Ihe beneIIs Ior IuIure services are reduced or elininaIed. A change in IuIure beneIIs is IreaIed as a curIailnenI and
recognised in operaIing cosIs in Ihe incone sIaIenenI raIher Ihan an acIuarial gain or loss recognised in equiIy, iI
Ihe eIIecI oI Ihe reneasurenenI is signiIcanI.
- lasI service cosIs/(crediIs) Ihese occur when Ihere is a change in Ihe presenI value oI Ihe obligaIion, in respecI oI
a nenber's prior period oI service. These can arise due Io changes in Ihe beneII enIiIlenenI oI nenbers and are
recognised Ihrough operaIing cosIs.
- SeIIlenenI gains Ihese occur when Ihe Conpany enIers inIo a IransacIion Io elininaIe all IurIher legal or
consIrucIive obligaIions Ior sone or all oI Ihe beneIIs provided by Ihe schenes. SeIIlenenI gains can arise Iron
enhanced IransIer values exercises, Iully insuring beneIIs or on business disposals.
- lncrease due Io inIeresI cosI Ihis is Ihe unwinding oI Ihe discounI on Ihe presenI value oI Ihe obligaIion. Broadly, iI
is deIernined by nulIiplying Ihe discounI raIe aI Ihe beginning oI Ihe period by Ihe presenI value oI Ihe obligaIion
during Ihe period. This is recognised Ihrough neI Inancing cosIs in Ihe incone sIaIenenI.
- AcIuarial losses/(gains) arise Iron diIIerences beIween Ihe acIual and expecIed ouIcone in Ihe valuaIion oI Ihe
obligaIion. These can be experience adjusInenIs, which are diIIerences beIween Ihe assunpIions nade and whaI
acIually occurred, or Ihey can resulI Iron changes in assunpIions. AcIuarial gains and losses are recognised Ihrough
reIained losses wiIhin equiIy.
- Cash conIribuIions/(beneIIs paid) cash conIribuIions by schene parIicipanIs will increase Ihe obligaIions by Ihe
schenes whereas any beneIiIs paid ouI by Ihe schenes will lower Ihe obligaIions oI Ihose schenes.
The novenenI in Ihe presenI value oI Ihe Group's deIined
beneIiI obligaIion is analysed below.
2012
m
2011
n
DeIined beneIiI obligaIion aI
1 January 3,036 2,746
CurrenI service cosI 7 7
lnIeresI cosI 140 145
NeI acIuarial loss 200 268
BeneIiIs paid (139) (130)
DeIined beneIiI obligaIion aI
31 Decenber 3,244 3,036
The presenI value oI Ihe deIined beneIiI obligaIion is
analysed beIween wholly unIunded and Iunded deIined
beneIiI schenes in Ihe Iable below.
2012
m
2011
n
DeIined beneIiI obligaIion in respecI oI
Iunded schenes 3,203 2,997
DeIined beneIiI obligaIion in respecI oI
wholly unIunded schenes 41 39
ToIal deIined beneIiI obligaIion 3,244 3,036
!!"#$%"& ##(#!(!"#! )*++, -.+
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!""#$% '()*+, $"- !..*#",/ 0120
RSF
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
Keeping it simp|e . . .
AssunpIions used Io calculaIe Ihe besI esIinaIe
oI IuIure cash Ilows Io be paid ouI by Ihe schenes
include. IuIure salary levels, IuIure pensionable salary
levels, Ihe esIinaIe oI increases in pension paynenIs,
Ihe liIe expecIancy oI nenbers, Ihe eIIecI oI inIlaIion
on all Ihese IacIors and ulIinaIely Ihe discounI raIe
used Io esIinaIe Ihe presenI day Iair value oI Ihese
obligaIions.
When deciding on Ihese assunpIions Ihe Group
Iakes independenI acIuarial advice relaIing Io Ihe
appropriaIeness oI Ihe assunpIions.
The principal assunpIions used in Ihe schenes' valuaIions aI
Ihe year end were.
2012 2011
DiscounI raIe Ior schene liabiliIies 4.2% 4.7%
lnIlaIion assunpIion 2.9% 3.0%
PaIe oI pensionable salary increases 0.9% 0.9%
PaIe oI increase in pension paynenI
(lll 5% pension increases) 2.S% 2.9%
PaIe oI increase Io deIerred
pensions (Cll) 2.2% 2.3%
lAS 19 requires IhaI Ihe discounI raIe used is deIernined by
reIerence Io high qualiIy Iixed incone invesInenIs in Ihe UK
IhaI naIch Ihe esIinaIed Iern oI Ihe pension obligaIions.
The basis oI esIinaIing Ihe discounI raIe is by using Ihe yields
available on AA raIed corporaIe bonds oI a Iern sinilar Io Ihe
liabiliIies.
The inIlaIion assunpIion has been seI by looking aI Ihe
diIIerence beIween Ihe yields on Iixed and index-linked
GovernnenI bonds. The inIlaIion assunpIion is used Io
calculaIe Ihe renaining assunpIions excepI where inIlaIion
caps have been inplenenIed.
ln esIinaIing Ihe liIe expecIancy oI pension schene nenbers,
Ihe Group has used lA92 year oI birIh Iables wiIh nediun
cohorI inprovenenIs, wiIh a 1% per annun underpin and a
one year age raIing (i.e. Iables are adjusIed so IhaI a nenber
is assuned Io be one year older Ihan acIual age). Using Ihese
Iables Ihe assuned liIe expecIaIions on reIirenenI are.
2012 2012 2011 2011
PeIiring Ioday aI age 60 65 60 65
Males 26.S 21.9 26.7 21.8
lenales 30.1 25.1 30.0 25.0
PeIiring in 20 years aI age 60 65 60 65
Males 2S.S 23.7 28.7 23.6
lenales 32.2 27.0 32.1 26.9
The Iables above reIlecI published norIaliIy invesIigaIion
daIa in conjuncIion wiIh Ihe resulIs oI invesIigaIions inIo Ihe
norIaliIy experience oI schene nenbers.
The sensiIiviIies regarding Ihe principal assunpIions used Io
neasure Ihe deIined beneIiI obligaIion are seI ouI below.
AssunpIion Change in assunpIion lnpacI on schene deIiciI
DiscounI raIe lncrease by 0.5% Decrease by 250 nillion
Decrease by 0.5% lncrease by 290 nillion
PaIe oI inIlaIion lncrease by 0.5% lncrease by 170 nillion
Decrease by 0.5% Decrease by 100 nillion
liIe expecIaIions lncrease by 1 year lncrease by 30 nillion
The sensiIiviIies above consider Ihe single change shown
wiIh Ihe oIher assunpIions assuned Io be unchanged.
ln pracIice, changes in one assunpIion nay be acconpanied
by oIIseIIing changes in anoIher assunpIion (alIhough Ihis
is noI always Ihe case).
The Group's neI pension deIiciI is Ihe diIIerence beIween
Ihe schenes' liabiliIies and Ihe schenes' asseIs. Changes in
Ihe assunpIions nay occur aI Ihe sane Iine as changes in
Ihe narkeI value oI schene asseIs.
These nay or nay noI oIIseI Ihe change in assunpIions. lor
exanple, a Iall in inIeresI raIes will increase Ihe schenes'
liabiliIies, buI nay also Irigger an oIIseIIing increase in Ihe
narkeI value oI cerIain asseIs so Ihere is no neI eIIecI on
Ihe Group's liabiliIy.
;$8&*+" VH Q%$,9&*"? (..$&. 9"# U*93*7*&*$. 8+"&*")$#
!!"#$%"& ##(#!(!"#! )*++, -.+
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!"#$% $#'() *+,
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5+&97 #$4*"$# 3$"$4*& .80$2$ 9..$&.
Keeping it simp|e . . .
The lension schene holds asseIs across a nunber oI diIIerenI classes, Ihese being equiIies, bonds and oIher
invesInenIs. These asseIs are nanaged by Ihe TrusIee, alIhough Ihe TrusIee is required Io consulI wiIh Ihe Group
on changes Io Iheir invesInenI policy. linancial insIrunenIs are in place which provide proIecIion againsI changes in
narkeI IacIors (inIeresI raIes and inIlaIion) which could acI Io increase Ihe pension deIiciI.
ln 2011 Ihe schene obIained proIecIion againsI Ihe eIIecI oI increases in Ihe liIe expecIaIion oI Ihe najoriIy oI
pensioner nenbers by IransacIing a longeviIy swap. Under Ihe swap, Ihe IrusIees oI Ihe schene agreed Io nake pre-
deIernined paynenIs in reIurn Ior paynenIs Io neeI Ihe speciIied pension obligaIions as Ihey Iall due, irrespecIive oI
how long Ihe nenbers and Iheir dependanIs live.
The diIIerence in Ihe presenI values oI Ihese Iwo sIreans oI paynenIs is reIlecIed in schene asseIs and energes as
an acIuarial loss on Ihe asseIs.
The liIe expecIancy assunpIions which Ihe Group nakes Ior iIs lAS 19 calculaIions are iIs besI esIinaIe oI Ihe
poIenIial ouIcone. The pre-deIernined swap paynenIs Iron Ihe TrusIee oI Ihe schene are based on a cauIious
esIinaIe oI liIe expecIancy as Ihey are being guaranIeed. This neans IhaI Ihe asseI adjusInenI in respecI oI Ihe
longeviIy swap increases when Ihe discounI raIe decreases or when Ihe inIlaIion assunpIion increases and vice-versa.
lension schene asseIs are neasured aI Iheir Iair value and can change due Io Ihe Iollowing.
- The expecIed reIurn on schene asseIs is deIernined based on Ihe narkeI expecIaIions aI Ihe beginning oI Ihe
year and calculaIed as Ihe expecIed percenIage reIurn nulIiplied by Ihe Iair value oI Ihe schene asseIs. This
expecIed reIurn on schene asseIs is recognised Ihrough neI Inancing cosIs in Ihe incone sIaIenenI.
- AcIuarial gains and losses arise Iron diIIerences beIween Ihe acIual and expecIed ouIcone in Ihe valuaIion oI
Ihe asseIs. These can be experience adjusInenIs, which are diIIerences beIween Ihe assunpIions nade and whaI
acIually occurred, or Ihey can resulI Iron changes in assunpIions. lor exanple, diIIerences in Ihe acIual asseI
perIornance versus Ihe expecIed perIornance would be an acIuarial gain/(loss). AcIuarial gains and losses are
recognised Ihrough reIained losses wiIhin equiIy.
- Lnployer's conIribuIions and cash conIribuIions by schene parIicipanIs are paid inIo Ihe schenes Io be nanaged
and invesIed.
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
RS<
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
;$8&*+" VH Q%$,9&*"? (..$&. 9"# U*93*7*&*$. 8+"&*")$#
The novenenI in Ihe Iair value oI Ihe deIined beneIiI
schene's asseIs is analysed below.
2012
m
2011
n
lair value oI schene asseIs aI
1 January 2,646 2,433
LxpecIed reIurn on asseIs 131 140
NeI acIuarial (loss)/gain (27) 144
Lnployer conIribuIions S2 59
BeneIiIs and expenses paid (139) (130)
lair value oI schene asseIs aI
31 Decenber 2,693 2,646
AI 31 Decenber 2012 Ihe schene's asseIs were invesIed in
a diversiIied porIIolio IhaI consisIed prinarily oI equiIy and
debI securiIies. The Iair value oI Ihe schene's asseIs are
shown below by najor caIegory.
Market va|ue
2012
m
MarkeI value
2011
n
MarkeI value oI asseIs
equiIy-Iype asseIs 76S 745
MarkeI value oI asseIs bonds 1,S67 1,782
MarkeI value oI asseIs oIher 176 195
longeviIy swap Iair value (11S) (76)
ToIal schene asseIs 2,693 2,646
The TrusIee enIered a longeviIy swap in 2011 Io renove
Ihe risk oI increases in pension liabiliIies IhaI would arise
iI a signiIicanI porIion oI Ihe schene's deIined beneIiI
pensioner populaIion were Io enjoy a longer liIe Ihan
currenIly expecIed. The recogniIion oI Ihe swap resulIs in a
reducIion Io Ihe schene's asseIs due Io iIs classiIicaIion as a
negaIive plan asseI.
Lxposure Ihrough Ihe diIIerenI asseI classes is obIained
Ihrough a conbinaIion oI execuIing swaps and invesIing in
asseIs.
The TrusIee has a subsIanIial holding oI equiIy-Iype
invesInenIs, nainly shares in lisIed and unlisIed conpanies.
The invesInenI reIurn relaIed Io Ihese is variable, and Ihey
are generally considered 'riskier' invesInenIs. lowever, iI
is generally accepIed IhaI Ihe yield on Ihese invesInenIs
will conIain a preniun Io conpensaIe invesIors Ior Ihis
addiIional risk. There is signiIicanI uncerIainIy abouI
Ihe likely size oI Ihis risk preniun. ln respecI oI overseas
equiIy invesInenIs Ihere is also a risk oI unIavourable
currency novenenIs which Ihe TrusIee nanage by hedging
broadly 60% oI Ihe overseas invesInenIs againsI currency
novenenIs.
The TrusIee also holds corporaIe bonds and oIher Iixed
inIeresI securiIies. The risk oI deIaulI on Ihese is assessed by
various raIing agencies. Sone oI Ihese bond invesInenIs are
issued by Ihe UK GovernnenI. The risk oI deIaulI on Ihese
is lower conpared Io Ihe risk oI deIaulI on corporaIe bond
invesInenIs, alIhough sone risk nay renain. The expecIed
yield on bond invesInenIs wiIh Iixed inIeresI raIes can be
derived exacIly Iron Iheir narkeI value.
The expecIed reIurn Ior each asseI class is weighIed based
on Ihe IargeI asseI allocaIion Ior 2013 Io develop Ihe
expecIed long-Iern raIe oI reIurn on asseIs assunpIion
Ior Ihe porIIolio. The benchnark Ior 2013 is Io hold broadly
47% equiIies and 53% bonds. The najoriIy oI Ihe equiIies
held by Ihe schenes are in inIernaIional blue chip enIiIies.
The ain is Io hold a globally diversiIied porIIolio oI equiIies,
wiIh a IargeI oI broadly 22% oI equiIies being held in Ihe UK
and 78% oI equiIies held overseas. WiIhin Ihe bond porIIolio
Ihe ain is Io hold 58% oI Ihe porIIolio in governnenI bonds
(gilIs) and 42% oI Ihe porIIolio in corporaIe bonds and oIher
Iixed inIeresI securiIies.
The expecIed raIes oI reIurn on Ihe schene's asseIs by
najor caIegory and IargeI allocaIions are seI ouI below.
Expected
|ong-term rate
of return
2013
% p.a.
P|anned asset
a||ocation
2013
% of assets
LxpecIed
long-Iern raIe
oI reIurn
2012
% p.a.
llanned asseI
allocaIion
2012
% oI asseIs
LquiIy and
properIy 6.9 47 7.0 47
Bonds 2.S-3.9 53 2.84.5 53
The acIual reIurn on Ihe schene's asseIs Ior Ihe year ended
31 Decenber 2012 was an increase oI 104 nillion (2011.
284 nillion).
The TrusIee is responsible Ior deciding Ihe invesInenI
sIraIegy Ior Ihe schene's asseIs, alIhough changes in
invesInenI policies require consulIaIion wiIh Ihe Group.
Varying reIurns Iron Ihe diIIerenI Iypes oI asseIs held by
Ihe schene have resulIed in TrusIee invesInenI decisions
IhaI have noved Ihe asseI allocaIion in Ihe schene's
porIIolio away Iron Ihe IargeI raIio oI bonds and equiIies. A
rebalancing oI Ihe porIIolio only occurs iI equiIy Iype asseIs
exceed Ihe IargeI allocaIion by 3%, buI is noI necessary iI
equiIy asseI Iypes Iall below Ihe IargeI allocaIion.
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!"#$%#&'()*+,&,-.
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(2+)"&. ,$8+?"*.$# &0,+)?0 &0$ *"8+2$ .&9&$2$"&
AnounIs recognised Ihrough Ihe incone sIaIenenI in Ihe
various capIions are as Iollows.
2012
m
2011
n
AnounI charged Io operaIing cosIs.
CurrenI service cosI (7) (7)
AnounI (charged)/crediIed Io neI
Iinancing cosIs.
LxpecIed reIurn on pension
schene asseIs 131 140
lnIeresI cosI (140) (145)
(9) (5)
ToIal charged in Ihe consolidaIed
incone sIaIenenI (16) (12)
(2+)"&. ,$8+?"*.$# &0,+)?0 &0$ 8+".+7*#9&$# .&9&$2$"& +4
8+2%,$0$".*<$ *"8+2$
The anounIs recognised Ihrough Ihe consolidaIed
sIaIenenI oI conprehensive incone are.
2012
m
2011
n
AcIuarial gains and (losses).
Arising on schene asseIs (27) 144
Arising on schene liabiliIies (200) (268)
(227) (124)
The 200 nillion acIuarial loss on Ihe schene's liabiliIies
was principally due Io Ihe Iall in Ihe discounI raIe parIially
oIIseI by Ihe reducIion in Ihe raIe oI narkeI inplied
inIlaIion.
The cunulaIive anounI oI acIuarial gains and losses
recognised Ihrough Ihe consolidaIed sIaIenenI oI
conprehensive incone since 1 January 2004 is an acIuarial
loss oI 603 nillion (2011. 376 nillion loss). lncluded wiIhin
acIuarial gains and losses are experience adjusInenIs as
Iollows.
2012
m
2011
n
2010
n
2009
n
2008
n
Lxperience adjusInenIs
on schene asseIs (27) 144 147 48 (438)
Lxperience adjusInenIs
on schene liabiliIies (1) 95 (3)
Lxperience adjusInenIs on Ihe schene's liabiliIies in 2011
arose prinarily Iron Ihe updaIe oI nenbership daIa as parI
oI Ihe 2011 Iriennial valuaIion process, Ior exanple, acIual
norIaliIy experienced in Ihe period since Ihe lasI valuaIion
conpared Io esIinaIes.
:09"?$. &+ &0$ !(;G^ 988+)"&*"? .&9"#9,#
AnendnenIs Io lAS 19 'Lnployee beneIiIs' changes a
nunber oI disclosure requirenenIs Ior posI enploynenI
arrangenenIs and resIricIs Ihe opIions currenIly available
on how Io accounI Ior deIined beneIiI pension plans. The
nosI signiIicanI change IhaI will inpacI Ihe Group is IhaI
Ihe anendnenI requires Ihe expecIed reIurns on pension
plan asseIs, currenIly calculaIed based on nanagenenI's
esIinaIe oI expecIed reIurns, Io be replaced by a crediI
on pension plan asseIs calculaIed aI Ihe liabiliIy discounI
raIe. The revised version oI lAS 19 applies Iron 1 January
2013, and has reIrospecIive applicaIion. The Group will be
adopIing Ihe revised sIandard Iron Ihis daIe. lad Ihese
anendnenIs been adopIed Ior Ihe year ended 31 Decenber
2012, Ihey would have resulIed in an addiIional charge oI 14
nillion in Ihe consolidaIed incone sIaIenenI. The change
is noI expecIed Io inpacI Ihe Group's neI asseIs. lor IurIher
deIails, see anendnenIs Io sIandards in SecIion 1.
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
RSH
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
E6)8',5, #? 62$ 7),"
The Iable below analyses novenenIs in Ihe conponenIs oI neI cash during Ihe year.
1 January
2012
n
NeI cash Ilow
and
acquisiIions
n
Currency and
non-cash
novenenIs
n
31 December
2012
m
Cash 705 (103) 602
Cash equivalenIs 96 (8) SS
ToIal cash and cash equivalenIs 801 (111) 690
leld Io naIuriIy invesInenIs 147 (2) 145
loans and loan noIes due wiIhin one year -
linance leases due wiIhin one year (9) 8 (6) (7)
loans and loan noIes due aIIer one year (868) 275 (1) (594)
linance leases due aIIer one year (44) 6 (3S)
ToIal debI (921) 283 (1) (639)
Currency conponenI oI swaps held againsI euro denoninaIed bonds 31 (6) 25
ConverIible bond equiIy conponenI (27) 5 (22)
AnorIised cosI adjusInenI 14 (7) 7
NeI cash/(debI) 45 172 (11) 206
In this section . . .
This secIion ouIlines how Ihe Group nanages iIs capiIal and relaIed Iinancing cosIs.
The DirecIors deIernine Ihe appropriaIe capiIal sIrucIure oI lTV, speciIically, how nuch is raised Iron shareholders
(equiIy) and how nuch is borrowed Iron Iinancial insIiIuIions (debI) in order Io Iinance Ihe Group's acIiviIies boIh now
and in Ihe IuIure.
The DirecIors consider Ihe Group's capiIal sIrucIure and dividend policy aI leasI Iwice a year ahead oI announcing resulIs
in Ihe conIexI oI iIs abiliIy Io conIinue as a going concern and deliver iIs business plan. The Board's Iocus during Ihe year
was on inproving Ihe eIIiciency oI Ihe balance sheeI Ihrough a bond Iender, and inproving Ihe Group's crediI raIing.
ln 2013 Ihe Board will IurIher review iIs policies on capiIal sIrucIure Io supporI Ihe TransIornaIion llan, any poIenIial
courses oI acIion will Iake inIo accounI Ihe Group's liquidiIy needs, IlexibiliIy Io invesI in Ihe business, pension deIiciI
iniIiaIives and inpacI on crediI raIings. The Board is nindIul IhaI equiIy capiIal cannoI be easily Ilexed and in parIicular
raising new equiIy would nornally be likely only in Ihe conIexI oI an acquisiIion. DebI can be issued and repurchased
nore easily buI Ihere are high IransacIion cosIs in IrequenI adjusInenI and debI holders are under no obligaIion Io
accepI any oIIer Io repurchase.
<WR \2$ 7),"-LA2&$M
Keeping it simp|e . . .
NeI cash/(debI) is Ihe Group's key neasure used Io evaluaIe IoIal ouIsIanding debI neI oI Ihe currenI cash resources. ln
deIning IoIal ouIsIanding debI Ihe DirecIors consider iI appropriaIe Io include Ihe Iollowing.
- Ihe currency inpacI oI swaps held againsI Ihose debI insIrunenIs,
- equiIy conponenIs oI debI insIrunenIs, and
- Ihe anorIised cosI adjusInenI which reIecIs Ihe increase in coupon raIes Ior speciIc bonds caused by Ihe
downgrade oI lTV's crediI sIaIus Io sub-invesInenI grade in AugusI 2008.
;$8&*+" XH :9%*&97 ;&,)8&),$ 9"# =*"9"8*"? :+.&.
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1 January
2011
n
NeI cash Ilow
and
acquisiIions
n
Currency and
non-cash
novenenIs
n
31 Decenber
2011
n
Cash 761 (52) (4) 705
Cash equivalenIs 99 (6) 3 96
ToIal cash and cash equivalenIs 860 (58) (1) 801
leld Io naIuriIy invesInenIs 148 (1) 147
loans and loan noIes due wiIhin one year (47) 47
linance leases due wiIhin one year (8) 8 (9) (9)
loans and loan noIes due aIIer one year (1,170) 308 (6) (868)
linance leases due aIIer one year (53) 9 (44)
ToIal debI (1,278) 363 (6) (921)
Currency conponenI oI swaps held againsI euro denoninaIed bonds 98 (63) (4) 31
ConverIible bond equiIy conponenI (31) 4 (27)
AnorIised cosI adjusInenI 15 (1) 14
NeI cash/(debI) (188) 242 (9) 45
:9.0 9"# 89.0 $A)*<97$"&.
lncluded wiIhin cash equivalenIs is 43 nillion (2011. 48
nillion), Ihe use oI which is resIricIed Io neeIing Iinance
lease conniInenIs under progranne sale and leaseback
conniInenIs, and gilIs oI 37 nillion (2011. 37 nillion)
over which Ihe unIunded pension conniInenIs have a
charge.
_$7# &+ 29&),*&B *"<$.&2$"&.
ln lebruary 2009 a neI 50 nillion was raised Ihrough a
200 nillion covenanI Iree loan wiIh a naIuriIy oI March
2019, secured againsI Ihe purchase oI 4.5% March 2019
gilIs wiIh a noninal value oI 138 nillion (Ior a cosI oI 150
nillion). The 200 nillion loan carries an inIeresI cosI oI
13.55%. As aI Decenber 2012 Ihis gilI has a carrying value oI
145 nillion (2011. 147 nillion).
U+9". 9"# 7+9" "+&$. #)$ C*&0*" +"$ B$9,
There were no repaynenIs oI loans and loan noIes due
wiIhin one year (2011. Ihe t54 nillion (47 nillion) Lurobond
was repaid).
U+9". 9"# 7+9" "+&$. #)$ 94&$, +"$ B$9,
ln June 2012 t138 nillion oI Ihe June 2014 bonds, 75
nillion oI Ihe OcIober 2015 bonds and 89 nillion oI Ihe
January 2017 bonds were repurchased (2011. all oI Ihe 110
nillion March 2013 bonds and 229 nillion oI Ihe 2015
bonds were repurchased).
:),,$"8B 8+2%+"$"&. +4 .C9%. 0$7# 9?9*".& $),+
#$"+2*"9&$# 3+"#.
As aI 31 Decenber 2012 Ihe currency elenenI oI Ihe cross
currency inIeresI raIe swaps is a 25 nillion asseI (2011. 31
nillion asseI) and Ihis oIIseIs Ihe exchange raIe novenenI
oI Ihe 2014 euro denoninaIed bonds.
:+"<$,&*37$ 3+"#
ln Novenber 2009 lTV issued a 135 nillion converIible
Lurobond wiIh a naIuriIy daIe oI Novenber 2016 and a
coupon oI 4%. As Ihe bond conIains an opIion Ior Ihe issuer
Io converI a porIion oI Ihe debI inIo lTV's equiIy (Iron
Novenber 2013), Ihe conponenIs are IreaIed as separaIe
insIrunenIs. The accounIing policy Ior Ihis conpound
insIrunenI is deIailed in noIe 4.2 (i.e. parIly debI and parIly
equiIy).
The debI porIion is 110 nillion (2011. 105 nillion) and is
included wiIhin loans and loan noIes due aIIer one year.
The eIIecIive inIeresI raIe on Ihe carrying value oI Ihe debI
conponenI is 9.4%. The equiIy conponenI oI 22 nillion
(2011. 27 nillion) is shown separaIely.
(2+,&*.$# 8+.& 9#F).&2$"&
The purpose oI Ihe anorIised cosI adjusInenI is Io
exclude Ihe inpacI oI Ihe coupon sIep-up on neI debI.
lTV's SIandard & loor's crediI raIing was lowered Io BB+
in AugusI 2008, resulIing in a coupon sIep-up in Ihe 2014
and 2017 bonds. The recalculaIion oI Ihe anorIised cosI
carrying values as required by lAS 39 resulIed in a non-
cash increase in neI debI oI 30 nillion as aI 31 Decenber
2008. The accounIing IreaInenI unwinds Ihis increase in
IuIure years as a reducIion in inIeresI expense, resulIing in a
balance oI 7 nillion (2011. 14 nillion) aI year end. As Ihis
adjusInenI has no inpacI on Ihe cash inIeresI paid, Ihe
inIeresI charged Io unwind Ihe adjusInenI is excluded Iron
adjusIed neI Iinancing cosIs as described in Ihe linancial
and lerIornance Peview.
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
RSP
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
<WF V#++#I56T, )6A "28A $# :)$4+5$'
56>2,$:26$,
Keeping it simp|e . . .
The Group borrows noney Iron Iinancial insIiIuIions
in Ihe Iorn oI bonds and oIher Iinancial insIrunenIs.
These generally have Iixed inIeresI raIes and are Ior a
Iixed Iern.
Sone Iinancial insIrunenIs are conplex in IhaI Ihey
have variable raIes oI inIeresI IhaI are driven by Ihe
perIornance oI an index, wiIh Iixed upper and lower
liniIs on Ihe cosI Io Ihe Group. Sone insIrunenIs
require Ihe Group Io hold an invesInenI oI a lesser
value wiIh a Iixed inIeresI raIe and a Iixed naIuriIy
daIe.
The inIeresI payable and receivable on Ihese
insIrunenIs is shown in Ihe neI Iinancing cosIs noIe in
SecIion 4.4.
E77#46$56T =#85752,
I+,,+C*"?.
Borrowings are recognised iniIially aI Iair value less
direcIly aIIribuIable IransacIion cosIs, wiIh subsequenI
neasurenenI aI anorIised cosI using Ihe eIIecIive inIeresI
raIe neIhod. Under Ihe anorIised cosI neIhod Ihe
diIIerence beIween Ihe anounI iniIially recognised and
Ihe redenpIion value is recorded in Ihe incone sIaIenenI
over Ihe period oI Ihe borrowing on an eIIecIive inIeresI
basis. Borrowings are reIerred Io in Ihis secIion using Iheir
redenpIion value when describing Ihe Ierns and condiIions.
The nechanisn used Io deIernine variable inIeresI raIes
on a loan is analysed when Ihe loan is iniIially Iaken ouI Io
deIernine iI iI is closely relaIed Io Ihe loan. lI Ihe variable
raIe nechanisn is closely relaIed Io Ihe loan iI is noI
valued separaIely buI cash Ilow esIinaIes are included in
Ihe eIIecIive inIeresI raIe on Ihe loan. This assessnenI
is noI revisiIed unless Ihe Ierns oI Ihe loan are changed
signiIicanIly.
:+2%+)"# 4*"9"8*97 *".&,)2$"&.
Conpound Iinancial insIrunenIs are insIrunenIs IhaI are
classiIied as parIly debI and parIly equiIy due Io Ihe Ierns oI
Ihe insIrunenI.
The Group has one conpound Iinancial insIrunenI which is
Ihe 2016 converIible noIe IhaI can be converIed Io share
capiIal aI Ihe opIion oI Ihe holder aI naIuriIy or earlier,
aI Ihe opIion oI Ihe issuer subjecI Io saIisIying cerIain
condiIions.
The liabiliIy conponenI oI a conpound Iinancial insIrunenI
is recognised iniIially aI Ihe Iair value oI a sinilar liabiliIy
IhaI does noI have an equiIy conversion opIion. The equiIy
conponenI is recognised iniIially aI Ihe diIIerence beIween
Ihe Iair value oI Ihe conpound Iinancial insIrunenI as a
whole and Ihe Iair value oI Ihe liabiliIy conponenI. Any
direcIly aIIribuIable IransacIion cosIs are allocaIed Io Ihe
liabiliIy and equiIy conponenIs in proporIion Io Iheir iniIial
carrying anounIs.
SubsequenI Io iniIial recogniIion, Ihe liabiliIy conponenI
oI a conpound Iinancial insIrunenI is neasured aI
anorIised cosI using Ihe eIIecIive inIeresI neIhod. The
equiIy conponenI oI a conpound Iinancial insIrunenI
is noI reneasured subsequenI Io iniIial recogniIion buI
is IransIerred Io reIained earnings over Ihe Iern oI Ihe
insIrunenI on an eIIecIive inIeresI raIe basis.
_$7# &+ 29&),*&B 9..$&.
Where Ihe Group has Ihe posiIive inIenI and abiliIy Io hold
Iinancial asseIs Io naIuriIy, Ihey are classiIied as held Io
naIuriIy. leld Io naIuriIy Iinancial asseIs are recognised
iniIially aI Iair value including any direcIly aIIribuIable
IransacIion cosIs. SubsequenI Io iniIial recogniIion, held Io
naIuriIy Iinancial asseIs are neasured aI anorIised cosI
using Ihe eIIecIive inIeresI neIhod, less any inpairnenI.
V#++#I56T, )6A "28A $# :)$4+5$' 56>2,$:26$,
The Iable below analyses Ihe Group's borrowings by when
Ihey Iall due Ior paynenI.
Loans and
|oan notes
m
Finance |eases
m
2012
m
Current
ln 1 year or less, or on
denand - 7 7
Non-current
ln nore Ihan 1 year buI
noI nore Ihan 2 years 39 23 62
ln nore Ihan 2 years buI
noI nore Ihan 5 years 355 15 370
ln nore Ihan 5 years 200 - 200
594 3S 632
Tota| 594 45 639
;$8&*+" XH :9%*&97 ;&,)8&),$ 9"# =*"9"8*"? :+.&. 8+"&*")$#
!!"#$%"& ##(#!(!"#! )*++, -.+
!
"
#
$
%
&
'
#
(
)

+
$
,
'
#
&
-
&
#
.
&
$
/
0

1

2
,
$
#
.
&
"
'
3
(
4
$
#
5
'
#
6
.
3
%
$

1

7
"
3
.
3
%
"
.
8
(
+
$
(
,
'
3
(
"
9
"
8
"
&
0
:
'
;
$
#
3
.
3
%
$
RS;
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
!
"
#
$
#
%
"
$
&

(
)
$
)
*
+
*
#
)
,
-
.
*
/
.
"
*
0
loans and
loan noIes
n
linance leases
n
2011
n
Current
ln 1 year or less, or on
denand 9 9
Non-current
ln nore Ihan 1 year buI
noI nore Ihan 2 years 8 8
ln nore Ihan 2 years buI
noI nore Ihan 5 years 407 34 441
ln nore Ihan 5 years 461 2 463
868 44 912
ToIal 868 53 921
U+9". 9"# 7+9" "+&$. ,$%9B937$ 3$&C$$" +"$ 9"# &C+ B$9,.
loans repayable beIween one and Iwo years as aI 31
Decenber 2012 include an unsecured t50 nillion Lurobond
(15 nillion neI oI cross currency swaps) which has a coupon
oI 10.0% naIuring in June 2014.
U+9". 9"# 7+9" "+&$. ,$%9B937$ 3$&C$$" &C+ 9"# 4*<$ B$9,.
loans repayable beIween Iwo and Iive years as aI
31 Decenber 2012 include an unsecured 78 nillion
Lurobond which has a coupon oI 5.375% naIuring in
OcIober 2015, an unsecured 135 nillion converIible
Lurobond which has a coupon oI 4.0% naIuring in
Novenber 2016, and an unsecured 161 nillion Lurobond
which has a coupon oI 7.375% naIuring in January 2017.
U+9". 9"# 7+9" "+&$. ,$%9B937$ 94&$, 4*<$ B$9,.
loans repayable aIIer Iive years include Ihe 200 nillion
covenanI Iree loan raised in lebruary 2009 wiIh a naIuriIy
oI March 2019. This loan is secured againsI Ihe 4.5% March
2019 gilIs wiIh a noninal value oI 138 nillion (Ior a cosI oI
150 nillion) described in secIion 4.1. lnIeresI on Ihe loan is
13.55%. lnIeresI on Ihe loan is oIIseI by 3.5% oI incone in
respecI oI Ihe 138 nillion gilIs. The lender has Ihe opIion Io
issue a IurIher 150 nillion loan IhaI would carry an inIeresI
raIe oI 7.34%.
=9*, <97)$ <$,.). 3++] <97)$
The Iables below provide Iair value inIornaIion Ior Ihe Group's borrowings and held Io naIuring invesInenIs.
AsseIs MaIuriIy
Book value lair value
2012
m
2011
n
2012
m
2011
n
leld Io naIuriIy invesInenIs Mar 2019 145 147 166 166
The Iair value oI held Io naIuriIy invesInenIs is based on quoIed narkeI bid prices aI Ihe year end.
liabiliIies MaIuriIy
Book value lair value
2012
m
2011
n
2012
m
2011
n
t50 nillion Lurobond (previously t188 nillion Lurobond) June 2014 39 149 4S 171
78 nillion Lurobond (previously 154 nillion Lurobond) OcI 2015 7S 153 S4 150
135 nillion ConverIible bond Nov 2016 110 105 223 167
161 nillion Lurobond (previously 250 nillion Lurobond) Jan 2017 167 261 17S 253
200 nillion loan Mar 2019 200 200 309 290
594 868 S42 1,030
lair value, which is deIernined Ior disclosure purposes, is
calculaIed based on Ihe presenI value oI IuIure principal and
inIeresI cash Ilows, discounIed aI Ihe narkeI raIe oI inIeresI
aI Ihe reporIing daIe.
MovenenIs in book values oI Ihe 2014, 2015 and 2017
bonds are Ihe resulI oI buybacks in Ihe period.
The Iair value oI Ihe 135 nillion converIible bond is based
upon Ihe par value, whereas Ihe bonds are accounIed Ior
parIly as debI and parIly as equiIy, neI oI issue cosIs, as
described in noIe 4.1. The increase is prinarily due Io Ihe
increase in Ihe Conpany's share price.
The Iair value oI Ihe 200 nillion loan increased during Ihe
year as a resulI oI lower inIeresI raIes and lower crediI cosIs.
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
R<G
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
E77#46$56T =#85752,
The Group uses a liniIed nunber oI derivaIive Iinancial
insIrunenIs Io hedge iIs exposure Io IlucIuaIions in inIeresI
and Ioreign exchange raIes. The Group does noI hold or issue
derivaIive insIrunenIs Ior speculaIive purposes and does
noI engage in hedge accounIing as deIined under llPS.
DerivaIive Iinancial insIrunenIs are iniIially recognised aI
Iair value and are subsequenIly reneasured aI Iair value wiIh
Ihe novenenI recorded in Ihe incone sIaIenenI wiIhin
neI Iinancing cosIs. DerivaIives wiIh posiIive Iair values are
recorded as asseIs and negaIive Iair values as liabiliIies.
The Iair value oI Ioreign currency Iorward conIracIs is
deIernined by using Ihe diIIerence beIween Ihe conIracI
exchange raIe and Ihe quoIed Iorward exchange raIe aI
Ihe reporIing daIe. The Iair value oI inIeresI raIe swaps
is Ihe esIinaIed anounI IhaI Ihe Group would receive
or pay Io IerninaIe Ihe swap aI Ihe reporIing daIe,
Iaking inIo accounI currenI inIeresI raIes and Ihe currenI
crediIworIhiness oI swap counIerparIies.
Third parIy valuaIions are used Io Iair value Ihe Group's
derivaIives. The valuaIion Iechniques use inpuIs such
as inIeresI raIe yield curves and currency prices/yields,
volaIiliIies oI underlying insIrunenIs and correlaIions
beIween inpuIs.
Where a derivaIive Iinancial insIrunenI is designaIed as a
hedge oI Ihe variabiliIy in cash Ilows oI a recognised asseI
or liabiliIy, or a highly probable IorecasI IransacIion, Ihe
eIIecIive parI oI any gain or loss on Ihe derivaIive Iinancial
insIrunenI is recognised direcIly in equiIy. Any ineIIecIive
porIion oI Ihe hedge is recognised innediaIely in Ihe
incone sIaIenenI.
lor Iinancial asseIs and liabiliIies classiIied aI Iair value
Ihrough proIiI or loss, Ihe novenenIs in Ihe year relaIing Io
changes in Iair value and inIeresI are noI separaIed.
Derivative hnancia| instruments
The Iollowing Iable shows Ihe Iair value oI derivaIive
Iinancial insIrunenIs analysed by Iype oI conIracI. lnIeresI
raIe swap Iair values exclude accrued inIeresI.
*56)672 82),2,
The Iollowing Iable analyses when Iinance lease liabiliIies are due Ior paynenI.
Minimum
|ease
payments
m
Interest
m
2012
Principa|
m
Mininun lease
paynenIs
n
lnIeresI
n
2011
lrincipal
n
ln 1 year or less 9 2 7 12 3 9
ln nore Ihan 1 year buI noI nore Ihan 5 years 39 1 3S 47 5 42
ln nore Ihan 5 years - - - 2 2
4S 3 45 61 8 53
linance leases principally conprise progrannes under sale and leaseback arrangenenIs and a conIracIual arrangenenI
relaIing Io Ihe provision oI news accounIed Ior as a lease. The neI book value oI Iangible asseIs held under Iinance leases aI
31 Decenber 2012 was 2 nillion (2011. 3 nillion).
.3 Derivative hnancia| instruments
Keeping it simp|e . . .
A derivaIive is a Iinancial insIrunenI used Io nanage risk. lIs value changes over Iine in response Io underlying
variables such as exchange raIes or inIeresI raIes and is Ior a Iixed period. ln accordance wiIh Board approved policies,
Ihe Group uses derivaIives Io nanage iIs exposure Io IlucIuaIions in inIeresI on iIs borrowings and Ioreign exchange
raIes. These policies are included wiIhin SecIion 4.5.
DerivaIive Iinancial insIrunenIs are iniIially recognised as eiIher asseIs or liabiliIies aI Iair value and are subsequenIly
reneasured aI Iair value aI each reporIing daIe. MovenenIs in insIrunenIs neasured aI Iair value are recorded in Ihe
incone sIaIenenI in neI Iinancing cosIs.
Analysis oI Ihese derivaIives and Ihe various neIhods used Io calculaIe Iheir respecIive Iair values is deIailed in Ihis
secIion.
;$8&*+" XH :9%*&97 ;&,)8&),$ 9"# =*"9"8*"? :+.&. 8+"&*")$#
!!"#$%"& ##(#!(!"#! )*++, -.+
!
"
#
$
%
&
'
#
(
)

+
$
,
'
#
&
-
&
#
.
&
$
/
0

1

2
,
$
#
.
&
"
'
3
(
4
$
#
5
'
#
6
.
3
%
$

1

7
"
3
.
3
%
"
.
8
(
+
$
(
,
'
3
(
"
9
"
8
"
&
0
:
'
;
$
#
3
.
3
%
$
R<R
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
!
"
#
$
#
%
"
$
&

(
)
$
)
*
+
*
#
)
,
-
.
*
/
.
"
*
0
Assets
m
2012
Liabi|ities
m
Current
lnIeresI raIe swaps Iair value Ihrough
proIiI or loss - (1)
Non-current
lnIeresI raIe swaps Iair value Ihrough
proIiI or loss 99 (4S)
99 (49)
AsseIs
n
2011
liabiliIies
n
Current
lnIeresI raIe swaps Iair value Ihrough
proIiI or loss (1)
Non-current
lnIeresI raIe swaps Iair value Ihrough
proIiI or loss 110 (44)
110 (45)
!"&$,$.& ,9&$ .C9% 9..$&.
The swap asseIs in relaIion Io Ihe t50 nillion 2014
Lurobond (see secIion 4.2) are as Iollows.
- Cross currency and inIeresI swaps wiIh a Iair value oI
29 nillion. The swaps receive a coupon oI 10% and
t50 nillion aI naIuriIy (Io naIch Ihe bond coupon and
principal repaynenI due Io bond holders) and pay 13.2%
on a noIional anounI oI 15.2 nillion and pays 15.2
nillion aI naIuriIy.
The renaining 70 nillion oI lnIeresI raIe swap asseIs relaIe
Io a nunber oI IloaIing raIe swaps naIched againsI Ihe
2015 and 2017 Lurobonds. The Iollowing swap asseIs are
naIched againsI Ihe 2015 Lurobond.
- 162.5 nillion swap wiIh a Iair value oI 18 nillion (Swap
AsseI A"). This swap receives 5.375% (Io naIch Ihe bond
coupon) and pays six-nonIh sIerling llBOP plus 0.3%.
- A porIIolio oI swaps IoIalling 162.5 nillion Iair valued aI
15 nillion (Swap AsseI B"). These swaps receive 5.375%
(Io naIch Ihe bond coupon) and pay a weighIed average
oI Ihree-nonIh sIerling llBOP plus 1.45%.
- A IurIher 120.5 nillion swap wiIh a Iair value aI 4
nillion (Swap AsseI C"). This swap receives 5.375% (Io
naIch Ihe bond coupon) and pays Ihe higher oI six-
nonIh sIerling llBOP plus 2.905% or six-nonIh US$
llBOP plus 2.105%, seI in arrears wiIh a cap on paynenI
oI 8%.
The swap asseIs naIched againsI Ihe 2017 Lurobond are as
Iollows.

- 125 nillion swap wiIh a Iair value oI 24 nillion (Swap
AsseI D"). This swap receives 6.125% (Io naIch Ihe original
bond coupon) and pays Ihree-nonIh sIerling llBOP plus
0.51% wiIh Ihe Ihree-nonIh sIerling llBOP capped aI
5.25% Ior raIes beIween 5.25% and 8.0%.
- A IurIher 125 nillion swap wiIh a Iair value aI 9 nillion
(Swap AsseI L"). This swap receives 7.375% (Io naIch Ihe
bond coupon) and pays Ihe higher oI six-nonIh sIerling
llBOP plus 4.52% or six-nonIh US$ llBOP plus 3.72%, seI
in arrears wiIh a cap on paynenI oI 10%.
!"&$,$.& ,9&$ .C9% 7*93*7*&*$.
lnIeresI raIe swap liabiliIies oI 49 nillion as aI 31 Decenber
2012 relaIe Io various Iixed and IloaIing raIe swaps naIched
againsI Ihe 2015 and 2017 Lurobonds. The Iollowing swap
liabiliIies are naIched againsI Ihe 2015 Lurobond and
naIure in OcIober 2015.
- A IurIher 162.5 nillion swap Iair valued aI nil. The swap
receives six-nonIh sIerling llBOP plus 0.3%, and pays Ihe
higher oI six-nonIh sIerling llBOP ninus 0.2% or six-
nonIh US$ llBOP ninus 1.0%, seI in arrears or in advance.
This swap naIches againsI Swap AsseI A.
- A porIIolio oI swaps IoIalling 162.5 nillion Iair valued aI
5 nillion. The swaps pay 5.375% and receive a weighIed
average oI six-nonIh sIerling llBOP plus 3.49% seI in
arrears. This swap naIches againsI Swap AsseI A.
- 162.5 nillion swap Iair valued aI 17 nillion. The swap
receives Ihree-nonIh sIerling llBOP and pays 4.35%. The
bank has Ihe righI Io cancel Ihe swap. This swap naIches
againsI Swap AsseI B.
- 120.5 nillion swap Iair valued aI 3 nillion, under which
iI receives six-nonIh llBOP plus 3.605% and pays 5.375%
seI in arrears. This swap naIches againsI Swap AsseI C.
The Iollowing swap liabiliIies are naIched againsI Ihe 2017
Lurobond and naIure in January 2017.
- 125 nillion swap valued aI 18 nillion, under which iI
receives Ihree-nonIh sIerling llBOP and pays 4.31%. The
bank has Ihe righI Io cancel Ihe swap. This swap naIches
againsI Swap AsseI D.
- 125 nillion swap valued aI 6 nillion, under which iI
receives six-nonIh sIerling llBOP plus 5.257% seI in
arrears and pays 7.375%. This swap naIches againsI Swap
AsseI L.
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
R<F
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
. Net hnancing costs
Keeping it simp|e . . .
This secIion deIails Ihe inIeresI incone generaIed on
Ihe Group's Iinancial asseIs and Ihe inIeresI expense
incurred on borrowings and oIher Iinancial asseIs
and liabiliIies. ln reporIing 'adjusIed proIiI', Ihe Group
adjusIs neI Iinancing cosIs Io exclude nark-Io-narkeI
novenenIs on swaps and Ioreign exchange, gains/
losses on bond buybacks, inpuIed pension inIeresI
and oIher Iinancing cosIs. Mark-Io-narkeI novenenIs
reIlecI Ihe value oI Ihese insIrunenIs aI a poinI in
Iine, iI is variable and assunes cash is received aI IhaI
daIe. The raIionale Ior adjusInenIs nade Io Iinancing
cosIs is provided in Ihe linancial and lerIornance
Peview.
The presenIaIion oI neI Iinancing cosIs in Ihis noIe
reIlecIs Ihe incone and expenses according Io Ihe
classiIicaIion oI Iinancial insIrunenIs, whereas Ihe
Iocus in Ihe linancial and lerIornance Peview is Io
presenI adjusIed Iinancing cosIs.
E77#46$56T =#85752,
NeI Iinancing cosIs conprise inIeresI incone on Iunds
invesIed, gains/losses on Ihe disposal oI Iinancial
insIrunenIs, changes in Ihe Iair value oI Iinancial
insIrunenIs, inIeresI expense on borrowings and Iinance
leases, unwinding oI Ihe discounI on provisions and liabiliIies
Io non-conIrolling inIeresI, Ioreign exchange gains/losses,
and inplied inIeresI on pension asseIs and liabiliIies. lnIeresI
incone and expense is recognised as iI accrues in proIiI or
loss, using Ihe eIIecIive inIeresI neIhod.
Net hnancing costs
NeI Iinancing cosIs can be analysed as Iollows.
2012
m
2011
n
Financing income:
lnIeresI incone 16 22
LxpecIed reIurn on deIined beneIiI
pension schene asseIs 131 140
Change in Iair value oI insIrunenIs
classiIied aI Iair value Ihrough proIiI
or loss - 30
loreign exchange gain 4 4
151 196
Financing costs:
Change in Iair value oI insIrunenIs
classiIied aI Iair value Ihrough proIiI
or loss (5)
lnIeresI expense on Iinancial
liabiliIies neasured aI anorIised cosI (60) (82)
lnIeresI on deIined beneIiI pension
schene obligaIions (140) (145)
losses on early seIIlenenI (36) (39)
OIher inIeresI expense (9) (5)
(250) (271)
NeI Iinancing cosIs (99) (75)
losses relaIing Io changes in Iair value oI insIrunenIs oI 5
nillion (2011. gains oI 30 nillion) relaIe principally Io Ihe
unwinding oI Ihe inIeresI raIe swaps asseIs as Ihey near
naIuriIy.
As deIailed in Ihe linancial and lerIornance Peview, losses
on early seIIlenenI oI 36 nillion (2011. 39 nillion) were
incurred as a resulI oI Ihe bond Iender in June. Bonds
were repurchased aI prices in excess oI par value prinarily
reIlecIing lower crediI spreads and lower inIeresI raIes.
The loss is prinarily due Io Ihe repaynenI on Ihe 2014 t50
nillion Lurobond, where a repurchase oI t138 nillion in
noninal debI resulIed in a loss oI 25 nillion.
;$8&*+" XH :9%*&97 ;&,)8&),$ 9"# =*"9"8*"? :+.&. 8+"&*")$#
!!"#$%"& ##(#!(!"#! )*++, -.+
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!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
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<WN *56)675)8 +5,K ?)7$#+,
Keeping it simp|e . . .
The Group's acIiviIies expose iI Io a varieIy oI Iinancial
risks. narkeI risks (including currency risk, inIeresI raIe
risk and price risk), crediI risk and liquidiIy risk. The
Group's overall risk nanagenenI progranne Iocuses
on Ihe unpredicIabiliIy oI Iinancial narkeIs and seeks
Io nininise poIenIial adverse eIIecIs on Ihe Group's
Iinancial perIornance. The Group uses derivaIive
Iinancial insIrunenIs wiIhin iIs policies described
below Io nininise cerIain risk exposures.
Treasury policies have been approved by Ihe Board
Ior nanaging each oI Ihese risks including levels oI
auIhoriIy on Ihe Iype and use oI Iinancial insIrunenIs.
TransacIions are only underIaken iI Ihey relaIe Io
underlying exposures. The Ireasury IuncIion reporIs
regularly Io Ihe AudiI ConniIIee and Ireasury
operaIions are subjecI Io periodic reviews.
()+K2$ +5,K
:),,$"8B ,*.]
The Group operaIes inIernaIionally and is IhereIore exposed
Io currency risk arising Iron novenenIs in Ioreign exchange
raIes, prinarily wiIh respecI Io Ihe US dollar and Ihe euro.
loreign exchange risk arises Iron. diIIerences in Ihe daIes
connercial IransacIions are enIered inIo and Ihe daIe
Ihey are seIIled, recognised asseIs and liabiliIies, and neI
invesInenIs in Ioreign operaIions.
The Group's Ioreign exchange policy is Io hedge naIerial
Ioreign currency denoninaIed cosIs aI Ihe Iine oI
conniInenI and Io hedge a proporIion oI Ioreign currency
denoninaIed revenues on a rolling 12-nonIh basis unless a
naIural hedge exisIs. The Group seeks Io naIch conIracIual
and IorecasI Ioreign currency cosIs and revenues. lor
any naIerial unnaIched porIion, Ihe Group hedges using
Iorward Ioreign exchange conIracIs Ior up Io Iwo years. The
Group also uIilises Ioreign exchange swaps Io naIch Ioreign
currency cash Ilow Iining diIIerences.
The Group ensures IhaI iIs neI exposure Io Ioreign
denoninaIed cash balances is kepI Io an accepIable level
by buying or selling Ioreign currencies aI spoI raIes when
necessary Io address shorI-Iern inbalances.
The euro denoninaIed inIeresI and principal paynenIs
under Ihe t50 nillion bonds have been Iully hedged by cross
currency inIeresI raIe swaps.
The Group's invesInenIs in subsidiaries are noI hedged as
Ihose currency posiIions are considered Io be long-Iern in
naIure.
AI 31 Decenber 2012, iI sIerling had weakened/sIrengIhened
by 10% againsI Ihe US dollar wiIh all oIher variables held
consIanI, posI-Iax proIiI Ior Ihe year would have been 6
nillion (2011. 3 nillion) higher/lower. LquiIy would have been
13 nillion (2011. 8 nillion) higher/lower.
AI 31 Decenber 2012, iI sIerling had weakened/sIrengIhened
by 10% againsI Ihe euro wiIh all oIher variables held consIanI,
posI-Iax proIiI Ior Ihe year would have been 6 nillion (2011.
4 nillion) higher/lower. LquiIy would have been 2 nillion
(2011. 2 nillion) higher/lower.
!"&$,$.& ,9&$ ,*.]
lnIeresI raIe risk is Ihe risk IhaI Ihe Group is inpacIed by
signiIicanI changes in inIeresI raIes. Borrowings issued aI or
swapped Io IloaIing raIes expose Ihe Group Io inIeresI raIe risk.
The Group's inIeresI raIe policy was changed in 2011 Io having
100% oI iIs borrowings aI Iixed raIes in order Io lock in low
inIeresI raIes. This policy has been nainIained IhroughouI 2012.
The Group uIilises Iixed and IloaIing raIe inIeresI swaps and
opIions in order Io achieve Ihe desired policy nix. As illusIraIed
in noIe 4.3, Ihese conIracIs naIch againsI underlying bonds or
oIher inIeresI-bearing insIrunenIs and swaps.
All oI Ihe Group's inIeresI raIe swaps are classiIied as Iair value
Ihrough proIiI or loss so any novenenI in Ihe Iair value goes
Ihrough Ihe incone sIaIenenI raIher Ihan equiIy.
AI 31 Decenber 2012, iI inIeresI raIes had increased/
decreased by 0.1%, posI-Iax proIiI Ior Ihe year would have
been unchanged (2011. unchanged).
>,*8$ ,*.]
lrice risk is Ihe risk IhaI Ihe Group's Iinancial insIrunenIs
change in value due Io novenenIs in narkeI prices. This
excludes novenenIs in inIeresI raIe or Ioreign exchange. The
Group is noI exposed Io any naIerial price risk.
D+2A5$ +5,K
CrediI risk is Ihe risk oI Iinancial loss Io Ihe Group iI a
cusIoner or counIerparIy Io a Iinancial insIrunenI Iails Io
neeI iIs conIracIual obligaIions. lI arises principally Iron
Ihe Group's receivables Iron cusIoners, cash and held Io
naIuriIy invesInenIs. There is also crediI risk relaIing Io Ihe
Group's own crediI raIing as Ihis inpacIs Ihe availabiliIy and
cosI oI IuIure Iinance.
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
R<<
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
5,9#$ 9"# +&0$, ,$8$*<937$.
The Group's exposure Io crediI risk is inIluenced nainly by
Ihe individual characIerisIics oI each cusIoner. The najoriIy
oI Irade receivables relaIe Io airIine sales conIracIs wiIh
adverIising agencies and adverIisers. CrediI insurance has
been Iaken ouI againsI Ihese conpanies Io nininise Ihe
inpacI on Ihe Group in Ihe evenI oI a possible deIaulI.
:9.0 9"# 0$7# &+ 29&),*&B *"<$.&2$"&.
The Group operaIes sIricI invesInenI guidelines wiIh
respecI Io surplus cash and Ihe enphasis is on preservaIion
oI capiIal. CounIerparIy liniIs Ior cash deposiIs are largely
based upon long-Iern raIings published by Ihe najor crediI
raIing agencies and perceived sIaIe supporI. DeposiIs
longer Ihan 12 nonIhs require Ihe approval oI Ihe AudiI
ConniIIee.
I+,,+C*"?.
lTV's crediI raIings wiIh SIandard & loor's and Moody's
lnvesIor Service are BB+/Ba1 respecIively have inproved
signiIicanIly since 2009 buI Ihey are sIill 'sub-invesInenI
grade' wiIh boIh agencies. lTV's crediI raIings, Ihe cosI
oI crediI deIaulI swap hedging and Ihe absoluIe level oI
inIeresI raIes are key deIerninanIs in Ihe cosI oI new
borrowings Ior lTV. The cosI oI exisIing borrowing renains
subjecI Io Ihe Ierns oI Ihe insIrunenI.
]5J45A5$' +5,K
liquidiIy risk is Ihe risk IhaI Ihe Group will noI be able Io
neeI iIs Iinancial obligaIions as Ihey Iall due. The Group's
Iinancing policy is Io Iund iIselI Ior Ihe long Iern by
using debI insIrunenIs wiIh a range oI naIuriIies. lI is
subsIanIially Iunded Iron Ihe UK and Luropean capiIal
narkeIs, supplenenIed wiIh bank IaciliIies (see below).
ManagenenI noniIors rolling IorecasIs oI Ihe Group's
liquidiIy reserve (conprising undrawn bank IaciliIies and
cash and cash equivalenIs) on Ihe basis oI expecIed cash
Ilows. This noniIoring includes Iinancial raIios Io assess
possible IuIure crediI raIings and headroon and Iakes inIo
accounI Ihe accessibiliIy oI cash and cash equivalenIs.
AI 31 Decenber 2012 Ihe Group has available 375 nillion
(2011. 125 nillion) oI undrawn conniIIed IaciliIies. The
Group has a 125 nillion IaciliIy which is provided by one bank
and which is secured on adverIising receivables. This IaciliIy
has no Iinancial covenanIs and naIures in SepIenber 2015.
The Group also has a 250 nillion Pevolving CrediI laciliIy
which is provided by a handIul oI relaIionship banks and which
naIures in July 2015. This IaciliIy, which is unsecured, can be
exIended by up Io a IurIher Iwo years subjecI Io agreenenI
by Ihe banks. The IaciliIy has leverage and inIeresI cover
Iinancial covenanIs nornal Ior such a IaciliIy.
Keeping it simp|e . . .
The Iable below analyses Ihe Group's Iinancial
liabiliIies and derivaIive Iinancial liabiliIies inIo
relevanI naIuriIy groupings based on Ihe period
renaining unIil Ihe conIracIual naIuriIy daIe. The
anounIs disclosed in Ihe Iable are Ihe conIracIual
undiscounIed cash Ilows (including inIeresI), so will noI
always reconcile wiIh Ihe anounIs disclosed on Ihe
sIaIenenI oI Iinancial posiIion.
;$8&*+" XH :9%*&97 ;&,)8&),$ 9"# =*"9"8*"? :+.&. 8+"&*")$#
!!"#$%"& ##(#!(!"#! )*++, -.+
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!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
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At 31 December 2012
Tota|
contractua|
cash f|ows
m
Less than
1 year
m
Between
1 and 2 years
m
Between
2 and 5 years
m
Cver
5 years
m
Non-derivative financia| |iabi|ities
Borrowings (909) (57) (112) (507) (233)
leld Io naIuriIy invesInenIs 17S 6 6 19 147
Trade and oIher payables (623) (593) (20) (9) (1)
OIher payables non-currenI (22) - - (S) (14)
Derivative financia| instruments
lnIeresI raIe swaps 62 7 37 1S -
(1,314) (637) (S9) (4S7) (101)
AI 31 Decenber 2011
ToIal
conIracIual
cash Ilows
n
less Ihan
1 year
n
BeIween
1 and 2 years
n
BeIween
2 and 5 years
n
Over
5 years
n
Non-derivative financia| |iabi|ities
Borrowings (1,371) (79) (85) (668) (539)
leld Io naIuriIy invesInenIs 220 11 11 33 165
Trade and oIher payables (684) (639) (28) (16) (1)
OIher payables non-currenI (3) (2) (1)
Derivative financia| instruments
lnIeresI raIe swaps 89 12 11 59 7
(1,749) (695) (93) (593) (368)
leld Io naIuriIy invesInenIs are included wiIhin Ihe Iable above as Ihe 138 nillion March 2019 gilIs are used as securiIy
againsI Ihe 200 nillion 2019 loan, and Ihe neI repaynenI in 2019 is 62 nillion.
<WH *)5+ >)842 "52+)+7"'
Keeping it simp|e . . .
The Iinancial insIrunenIs included on Ihe lTV sIaIenenI oI Iinancial posiIion are neasured aI eiIher Iair value or
anorIised cosI. The neasurenenI oI Ihis Iair value can in sone cases be subjecIive, and can depend on Ihe inpuIs
used in Ihe calculaIions. lTV generally uses exIernal valuaIions using narkeI inpuIs or narkeI values (e.g. exIernal
share prices) and does noI calculaIe iIs own Iair values. The diIIerenI valuaIion neIhods are called 'hierarchies' and are
described below.
The Iable below seIs ouI Ihe Iinancial insIrunenIs included on Ihe lTV sIaIenenI oI Iinancial posiIion aI 'Iair value'.
Fair va|ue
31 December
2012
m
Leve| 1
31 December
2012
m
Leve| 2
31 December
2012
m
Leve| 3
31 December
2012
m
Assets measured at fair va|ue
Available Ior sale Iinancial insIrunenIs
STV shares 3 3 - -
Available Ior sale gilIs 37 37 - -
linancial asseIs aI Iair value Ihrough proIiI or loss
lnIeresI raIe swaps 99 - 99 -
139 40 99 -
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
R<H
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
Fair va|ue
31 December
2012
m
Leve| 1
31 December
2012
m
Leve| 2
31 December
2012
m
Leve| 3
31 December
2012
m
Liabi|ities measured at fair va|ue
linancial liabiliIies aI Iair value Ihrough proIiI or loss
lnIeresI raIe swaps (49) - (49) -
(49) - (49) -
lair value
31 Decenber
2011
n
level 1
31 Decenber
2011
n
level 2
31 Decenber
2011
n
level 3
31 Decenber
2011
n
Assets measured at fair va|ue
Available Ior sale Iinancial insIrunenIs
STV shares 2 2
Available Ior sale gilIs 37 37
linancial asseIs aI Iair value Ihrough proIiI or loss
lnIeresI raIe swaps 110 110
149 39 110
lair value
31 Decenber
2011
n
level 1
31 Decenber
2011
n
level 2
31 Decenber
2011
n
level 3
31 Decenber
2011
n
Liabi|ities measured at fair va|ue
linancial liabiliIies aI Iair value Ihrough proIiI or loss
lnIeresI raIe swaps (45) (45)
(45) (45)
level 1
;$8&*+" XH :9%*&97 ;&,)8&),$ 9"# =*"9"8*"? :+.&. 8+"&*")$#
lair values neasured using quoIed prices (unadjusIed) in
acIive narkeIs Ior idenIical asseIs or liabiliIies.
level 2
lair values neasured using inpuIs, oIher Ihan quoIed prices
included wiIhin level 1, IhaI are observable Ior Ihe asseI or
liabiliIy eiIher direcIly or indirecIly.
lnIeresI raIe swaps and opIions are accounIed Ior aI Iheir
Iair value based upon IerninaIion prices. lorward Ioreign
exchange conIracIs are accounIed Ior aI Ihe diIIerence
beIween Ihe conIracI exchange raIe and Ihe quoIed
Iorward exchange raIe aI Ihe reporIing daIe.
level 3
lair values neasured using inpuIs Ior Ihe asseI or liabiliIy
IhaI are noI based on observable narkeI daIa.
<WO UJ45$'
Keeping it simp|e . . .
This secIion explains naIerial novenenIs recorded in
shareholders' equiIy IhaI are noI explained elsewhere
in Ihe Iinancial sIaIenenIs. The novenenIs in equiIy
and Ihe balance aI 31 Decenber 2012 are presenIed in
Ihe consolidaIed sIaIenenI oI changes in equiIy.
The Group uIilises share award schenes as parI oI iIs
enployee renuneraIion packages. The various lTV
Share-based conpensaIion schenes are explained in
Ihis secIion as Ihey are accounIed Ior Ihrough reIained
losses.
E77#46$56T =#85752,
(<9*7937$ 4+, .97$ ,$.$,<$
Available Ior sale asseIs are sIaIed aI Iair value, wiIh any
gain or loss recognised direcIly in Ihe available Ior sale
reserve in equiIy, unless Ihe loss is a pernanenI inpairnenI,
when iI is Ihen recorded in Ihe incone sIaIenenI.
!!"#$%"& ##(#!(!"#! )*++, -.+
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R*<*#$"#.
Dividends are recognised Ihrough equiIy on Ihe earlier
oI Iheir approval by Ihe Conpany's shareholders or Iheir
paynenI.
;09,$K39.$# 8+2%$".9&*+"
The Group operaIes a nunber oI share-based conpensaIion
schenes. The Iair value oI Ihe equiIy insIrunenI granIed is
neasured aI granI daIe and spread over Ihe vesIing period
via a charge Io Ihe incone sIaIenenI wiIh a corresponding
increase in equiIy.
The Iair value oI Ihe share opIions and awards is neasured
using eiIher a MonIe Carlo or BlackScholes nodel, as
appropriaIe, Iaking inIo accounI Ihe Ierns and condiIions
oI Ihe individual schene. Under Ihese valuaIion neIhods,
Ihe share price Ior lTV plc is projecIed Io Ihe end oI Ihe
perIornance period as is Ihe ToIal Shareholder PeIurn Ior
lTV plc and Ihe conpanies in Ihe conparaIor groups. Based
on Ihese projecIions, Ihe nunber oI awards IhaI will vesI
and Iheir presenI value is deIernined.
The valuaIion oI Ihese share-based paynenIs also requires
esIinaIes Io be nade in respecI oI Ihe nunber oI opIions
IhaI are expecIed Io be exercised.
VesIing condiIions are liniIed Io service condiIions and
perIornance condiIions. CondiIions oIher Ihan service
or perIornance condiIions are considered non-vesIing
condiIions. Non-narkeI vesIing condiIions are included
in assunpIions abouI Ihe nunber oI opIions IhaI are
expecIed Io vesI. AI each reporIing daIe, Ihe Group
revises iIs esIinaIes oI Ihe nunber oI opIions IhaI are
expecIed Io vesI. lI recognises Ihe inpacI oI Ihe revision Io
original esIinaIes, iI any, in Ihe incone sIaIenenI, wiIh a
corresponding adjusInenI Io equiIy.
XW[WG ;09,$ 89%*&97 9"# .09,$ %,$2*)2
The Group's share capiIal aI 31 Decenber 2012 oI 391
nillion (2011. 389 nillion) and share preniun oI 122
nillion (2011. 120 nillion) is Ihe sane as IhaI oI lTV plc.
DeIails oI Ihis are given in Ihe lTV plc Conpany Iinancial
sIaIenenIs secIion oI Ihis annual reporI.
XW[WN 1$,?$, 9"# +&0$, ,$.$,<$.
Merger and oIher reserves aI 31 Decenber 2012 include Ihe
Iollowing reserves which have noI noved Iron Ihe prior
year.
- nerger reserves arising on Ihe Granada/CarlIon nerger
and previous nergers oI 119 nillion,
- capiIal reserves oI 112 nillion,
- capiIal redenpIion reserves oI 36 nillion,
- revaluaIion reserves oI 6 nillion.
The balances on Ihe Iollowing reserves noved in Ihe year.
- 22 nillion (2011. 27 nillion) in respecI oI Ihe equiIy
elenenI oI Ihe 2016 converIible bond,
- 12 nillion debiI (2011. nil) in respecI oI Ihe liabiliIy on
Ihe opIions Ior Ihe acquisiIion oI Gurney.
XW[WV 5,9".79&*+" ,$.$,<$
The IranslaIion reserve conprises all Ioreign exchange
diIIerences arising on Ihe IranslaIion oI Ihe accounIs oI, and
invesInenIs in, Ioreign operaIions.
XW[WX (<9*7937$ 4+, .97$ ,$.$,<$
The available Ior sale reserve conprises all novenenIs
arising on Ihe revaluaIion and disposal oI asseIs accounIed
Ior as available Ior sale.
XW[WY /$&9*"$# $9,"*"?.
The reIained earnings reserve conprises proIiI Ior Ihe year
aIIribuIable Io owners oI Ihe Conpany oI 267 nillion (2011.
247 nillion) and oIher iIens recognised direcIly Ihrough
equiIy as presenIed on Ihe consolidaIed sIaIenenI oI
changes in equiIy.
The DirecIors oI lTV plc propose a Iinal dividend oI 1.8p per
share and a special dividend oI 4.0p per share.
XW[WZ L+"K8+"&,+77*"? *"&$,$.&.
ln 2012 1 nillion (2011. 1 nillion) oI proIiI was aIIribuIable
Io non-conIrolling inIeresIs.
XW[W[ ;09,$K39.$# 8+2%$".9&*+"
A IransacIion will be classed as a share-based IransacIion
where Ihe Group receives services Iron enployees and pays
Ior Ihese in shares or sinilar equiIy insIrunenIs. lI Ihe Group
incurs a liabiliIy whose anounI is based on Ihe price or value
oI Ihe Group's shares Ihen Ihis will also Iall under a share-
based IransacIion.
The Group operaIes a nunber oI share-based conpensaIion
schenes. A descripIion oI each Iype oI share-based
paynenI arrangenenI IhaI exisIed aI any Iine during Ihe
period, including Ihe general Ierns and condiIions oI each
arrangenenI, such as vesIing requirenenIs, Ihe naxinun
Iern oI opIions granIed, and Ihe neIhod oI seIIlenenI (e.g.
wheIher in cash or equiIy) are seI ouI in Ihe PenuneraIion
PeporI.
Lxercises oI share opIions granIed Io enployees can be
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
R<P
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
saIisIied by narkeI purchase or issue oI new shares. No new shares nay be issued Io saIisIy exercises under Ihe Ierns oI Ihe
DeIerred Share Award llan. During Ihe year all exercises were saIisIied eiIher by using shares purchased in Ihe narkeI and
held in Ihe lTV Lnployees' BeneIiI TrusI or by issuing new shares.
Share-based conpensaIion charges IoIalled 9 nillion in 2012 (2011. 11 nillion).
The Iable below sunnarises Ihe novenenIs in Ihe nunber oI share opIions ouIsIanding Ior Ihe Group and Iheir weighIed
average exercise price.
Number
of options
('000)
2012
Weighted
average
exercise price
(pence)
Nunber
oI opIions
('000)
2011
WeighIed
average
exercise price
(pence)
OuIsIanding aI 1 January S1,479 12.74 77,302 22.32
GranIed during Ihe year nil priced 19,1S4 - 16,333
GranIed during Ihe year oIher 6,21S 66.79 2,370 73.58
lorIeiIed during Ihe year (16,94S) 3.S0 (3,069) 60.25
Lxercised during Ihe year (1S,052) 14.52 (3,951) 27.02
Lxpired during Ihe year (3,494) 106.17 (7,506) 75.86
OuIsIanding aI 31 Decenber 6S,3S7 11.06 81,479 12.74
Lxercisable aI 31 Decenber 6,407 2.30 21,115 19.13
lor Ihose opIions exercised in Ihe year, Ihe average share price during 2012 was 84.03 pence (2011. 69.35 pence).
OI Ihe opIions sIill ouIsIanding, Ihe range oI exercise prices and weighIed average renaining conIracIual liIe oI Ihese
opIions can be analysed as Iollows.
Pange oI exercise prices (pence)
Weighted
average
exercise price
(pence)
Number
of options
('000)
2012
Weighted
average
remaining
contractua|
|ife
(years)
WeighIed
average
exercise price
(pence)
Nunber
oI opIions
('000)
2011
WeighIed
average
renaining
conIracIual
liIe
(years)
Nil - 54,61S 1.97 61,347 1.90
20.00 49.99 35.00 5,324 1.6S 31.50 13,265 1.86
50.00 69.99 65.76 6,59S 2.S7 58.46 1,487 1.05
70.00 99.99 73.69 1,S47 2.27 74.67 2,582 3.00
100.00 109.99 - - - 106.25 1,620 0.53
110.00 119.99 - - -
120.00 149.99 - - - 143.27 1,178 0.03
;09,$ .80$2$.
lurIher deIails oI Ihe lTV share plans and awards can be Iound in Ihe PenuneraIion PeporI.
Awards nade under Ihe Granada LxecuIive Share OpIion schene have reached Ihe end oI Iheir perIornance periods, and
have vesIed or lapsed accordingly. DeIails oI Ihe perIornance criIeria IhaI applied Io Ihese awards are seI ouI in Ihe noIes
Io previous Iinancial sIaIenenIs, and in previous renuneraIion reporIs and have noI been repeaIed in Ihese Iinancial
sIaIenenIs on Ihe grounds oI relevance. AlIhough awards renain vesIed buI unexercised under Ihese schenes, Ihey are noI
considered naIerial Ior Ihe purposes oI disclosure in Ihis noIe.
The awards nade under Ihe lTV lerIornance Share llan granIs prior Io 2011 include awards IhaI have narkeI based
perIornance condiIions IhaI are Iaken inIo accounI in Ihe Iair value calculaIion using a MonIe Carlo pricing nodel. The
BlackScholes nodel is used Io value Ihe SAYL Schenes as Ihese do noI have any narkeI perIornance condiIions. The lTV
SAYL schene is an lnland Pevenue Approved SAYL schene.
;$8&*+" XH :9%*&97 ;&,)8&),$ 9"# =*"9"8*"? :+.&. 8+"&*")$#
!!"#$%"& ##(#!(!"#! )*++, -.+
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!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
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AssunpIions nade relaIing Io granIs oI share opIions during 2012 and 2011 are as Iollows.
Schene nane DaIe oI granI
Share price
aI granI
(pence)
Lxercise price
(pence)
LxpecIed
volaIiliIy
%
LxpecIed liIe
(years)
Gross dividend
yield
%
Pisk-Iree raIe
%
lair value
(pence)
5ave As You Earn
lTV Ihree year 07 Apr 11 75.85 73.58 57.00% 3.25 2.02% 20.88
lTV Iive year 07 Apr 11 75.85 73.58 47.00% 5.25 2.81% 22.95
lTV Ihree year 04 Apr 12 85.25 68.81 43.00% 3.25 2.82% 0.65% 17.97
lTV Iive year 04 Apr 12 85.25 68.81 50.00% 5.25 2.82% 1.18% 22.36
lTV Ihree year 13 SepI 12 86.70 66.60 38.00% 3.25 2.82% 0.38% 17.46
lTV Iive year 13 SepI 12 86.70 66.60 50.00% 5.25 2.82% 0.81% 23.32
Performance 5hare P|an
lTV Ihree year 08 Mar 11 90.05 * 3.00 * * 90.05
lTV Ihree year 11 OcI 11 62.65 * 3.00 * * 62.65
lTV Ihree year 01 Mar 12 88.00 * 3.00 * * 88.00
lTV Ihree year 10 SepI 12 88.70 * 3.00 * * 88.70
* Awards do noI include narkeI based perIornance condiIions, IhereIore, MonIe Carlo or BlackScholes nodel noI required Io calculaIe Iair value.
The expecIed volaIiliIy Ior awards nade under Ihe SAYL schene reIlecIs Ihe hisIoric volaIiliIy oI lTV plc's share price and
equiIy narkeIs as a whole over Ihe preceding Ihree or Iive years, and depending on Ihe expecIed liIe oI Ihe award, prior Io
Ihe granI daIe oI Ihe share opIions awarded.
@2%7+B$$.- I$"$4*& 5,).&
The Group has invesInenIs in iIs own shares as a resulI oI shares purchased by Ihe lTV Lnployees' BeneIiI TrusI ('LBT').
TransacIions wiIh Ihe Group-sponsored LBT are included in Ihese Iinancial sIaIenenIs. ln parIicular, Ihe LBT's purchases oI
shares in lTV plc are debiIed direcIly Io equiIy.
The Iable below shows Ihe nunber oI lTV plc shares held in Ihe IrusI aI 31 Decenber 2012 and Ihe purchases/(releases)
Iron Ihe LBT nade in Ihe year Io saIisIy awards under Ihe Group's share schenes.
Schene. Shares held aI.
Nunber oI shares
(released)/
purchased
Noninal value

1 January 2012 7,354,694 735,469

lTV DeIerred Share Award llan (509,402)
lTV lerIornance Share llan (6,607,050)
lTV Turnaround llan (2,665,582)
PesIricIed Share Awards (139,190)
LxecuIive Share OpIion Schene (220,354)
lTV SAYL Schene (185,343)
SubscripIion Ior new issue shares 15,098,585
Shares purchased 2,723,057
31 December 2012 14,S49,415 1,4S4,942
The IoIal nunber oI shares held by Ihe LBT aI 31 Decenber 2012 represenIs 0.38% (2011. 0.19%) oI lTV's issued share capiIal.
The narkeI value oI own shares held aI 31 Decenber 2012 is 16 nillion (2011. 5 nillion).
The shares will be held in Ihe LBT unIil such Iine as Ihey nay be IransIerred Io parIicipanIs oI Ihe various Group share
schenes. PighIs Io dividends have been waived by Ihe LBT in respecI oI shares held which do noI relaIe Io resIricIed shares
under Ihe DeIerred Share Award llan. ln accordance wiIh Ihe TrusI Deed, Ihe TrusIees oI Ihe LBT have Ihe power Io exercise
all voIing righIs in relaIion Io any invesInenI (including shares) held wiIhin IhaI IrusI.
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
RNG
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
NWR 128)$2A =)+$' $+)6,)7$5#6,
Keeping it simp|e . . .
The relaIed parIies idenIiIied by Ihe DirecIors include
joinI venIures, associaIed underIakings, invesInenIs
and key nanagenenI personnel.
To enable users oI our Iinancial sIaIenenIs Io Iorn a
view abouI Ihe eIIecIs oI relaIed parIy relaIionships on
Ihe Group, we disclose Ihe relaIed parIy relaIionship
when conIrol exisIs, irrespecIive oI wheIher Ihere have
been IransacIions beIween Ihe relaIed parIies.
128)$2A =)+$' $+)6,)7$5#6,
5,9".98&*+". C*&0 F+*"& <$"&),$. 9"# 9..+8*9&$#
)"#$,&9]*"?.
TransacIions wiIh joinI venIures and associaIed
underIakings during Ihe year were.
2012
m
2011
n
Sales Io joinI venIures 11 10
Sales Io associaIed underIakings 9 1
lurchases Iron joinI venIures 24 26
lurchases Iron associaIed
underIakings 52 44
The IransacIions wiIh joinI venIures prinarily relaIe Io sales
and purchases oI digiIal nulIiplex services wiIh DigiIal 3&4
liniIed.
The purchases Iron associaIed underIakings relaIe Io Ihe
purchase oI news services Iron lTN. All IransacIions wiIh
associaIed underIakings and joinI venIures arise in Ihe
nornal course oI business on an arn's lengIh basis. None oI
Ihe balances are secured.
The anounIs owed by and Io Ihese relaIed parIies aI Ihe
year end were.
2012
m
2011
n
AnounIs owed by joinI venIures 1
AnounIs owed by associaIed
underIakings 6 7
AnounIs owed by pension schene 2 1
AnounIs owed Io associaIed
underIakings 2 1
AnounIs paid Io Ihe Group's reIirenenI beneIiI plans are
seI ouI in secIion 3.7.
5,9".98&*+". C*&0 ]$B 29"9?$2$"& %$,.+""$7
Key nanagenenI consisIs oI lTV plc LxecuIive and Non-
execuIive DirecIors and Ihe lTV ManagenenI Board. Key
nanagenenI personnel conpensaIion is as Iollows.
2012
m
2011
n
ShorI-Iern enployee beneIiIs S 6
Share-based conpensaIion 6 6
14 12
;$8&*+" YH Q&0$, L+&$.
!!"#$%"& ##(#!(!"#! )*++, -.+
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!"#$%#&'()*+,&,-.
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!+5675=)8 Y#56$ >26$4+2,[ ),,#75)$2A 46A2+$)K56T, )6A 56>2,$:26$,
The Conpany indirecIly held aI 31 Decenber 2012 Ihe Iollowing holdings in signiIicanI joinI venIures, associaIed
underIakings and invesInenIs.
Nane NoIe
Interest in
ordinary
share capita|
2012
%
lnIeresI in
ordinary
share capiIal
2011
% lrincipal acIiviIy
lreesaI (UK) liniIed a 50.00 50.00
lrovision oI a sIandard and high deIiniIion
enabled digiIal saIelliIe proposiIion
DigiIal 3&4 liniIed a 50.00 50.00
OperaIes Ihe Channel 3 and 4 digiIal IerresIrial
nulIiplex
YouView TV liniIed a 14.30 14.30 lnIerneI connecIed Ielevision plaIIorn
Noho liln and Television liniIed a 50.00 Television drana and Iiln producIion conpany
lndependenI Television News liniIed b 40.00 40.00
Supply oI news services Io broadcasIers
in Ihe UK and elsewhere
MannoIh Screen liniIed b 25.00 25.00 lroducIion oI Ielevision progrannes
lSAN UK liniIed b 25.00 25.00
OperaIes volunIary nunbering sysIen Ior Ihe
idenIiIicaIion oI audiovisual works
STV Group plc
1
c 6.79 6.79 Television broadcasIing in cenIral and norIh ScoIland
1
lncorporaIed and regisIered in ScoIland. a JoinI venIure.
b AssociaIed underIaking.
c Available Ior sale Iinancial asseI.
NWF D#6$56T26$ 85)&585$52,
Keeping it simp|e . . .
A conIingenI liabiliIy is a liabiliIy IhaI is noI suIIicienIly
cerIain Io qualiIy Ior recogniIion as a provision where
uncerIainIy nay exisI regarding Ihe ouIcone oI
IuIure evenIs.
There are conIingenI liabiliIies in respecI oI cerIain liIigaIion
and guaranIees, broadcasIing issues, and in respecI oI
warranIies given in connecIion wiIh cerIain disposals oI
businesses. None oI Ihese iIens are expecIed Io have a
naIerial eIIecI on Ihe Group's resulIs or Iinancial posiIion.
NWS 94&,2J426$ 2>26$,
Keeping it simp|e . . .
Where Ihe Group receives inIornaIion in Ihe period
beIween 31 Decenber 2012 and Ihe daIe oI Ihis reporI
abouI condiIions relaIed Io cerIain evenIs IhaI exisIed
aI Ihe year end, we updaIe our disclosures IhaI relaIe
Io Ihose condiIions in lighI oI Ihe new inIornaIion.
Such evenIs can be caIegorised as adjusIing or non-
adjusIing depending on wheIher Ihe condiIion exisIed
in 2012. lI non-adjusIing evenIs aIIer Ihe year end are
naIerial, non-disclosure could inIluence Ihe econonic
decisions IhaI users nake on Ihe basis oI Ihe Iinancial
sIaIenenIs.
Accordingly, Ior each naIerial caIegory oI non-
adjusIing evenI aIIer Ihe reporIing period we disclose
in Ihis secIion Ihe naIure oI Ihe evenI and an esIinaIe
oI iIs Iinancial eIIecI, or a sIaIenenI IhaI such an
esIinaIe cannoI be nade.
On 25 January 2013, Ihe Group acquired Ihe Ireehold and
leasehold aI Ihe london Television CenIre, Ihe siIe which is
currenIly Ihe headquarIers Ior Ihe Group. ToIal consideraIion
oI 56 nillion was seIIled in cash. lI is Ihe Group's inIenIion
Io capiIalise Ihe acquisiIion as parI oI non-currenI asseIs on
Ihe Group's balance sheeI in 2013.
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
RNF
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
D#:=)6' V)8)672 9"22$
As aI 31 Decenber NoIe
2012
m
2012
m
2011
n
2011
n
Fixed assets:
lnvesInenIs in subsidiary underIakings iii 1,646 1,646
leld Io naIuriIy invesInenIs 145 147
DerivaIive Iinancial insIrunenIs 99 110
1,S90 1,903
Current assets:
AnounIs owed by subsidiary underIakings 3,424 1,610
OIher debIors 4 4
Cash aI bank and in hand and shorI-Iern deposiIs 515 620
3,943 2,234
Creditors - amounts fa||ing due within one year:
AnounIs owed Io subsidiary underIakings (4,2S5) (2,143)
Accruals and deIerred incone (S) (13)
DerivaIive Iinancial insIrunenIs (1)
(4,294) (2,156)
Net current assetsl(|iabi|ities) (351) 78
Tota| assets |ess current |iabi|ities 1,539 1,981
Creditors - amounts fa||ing due after more than one year:
Borrowings v (594) (868)
DerivaIive Iinancial insIrunenIs (4S) (44)
(642) (912)
Net assets S97 1,069
Capita| and reserves:
Called up share capiIal vi 391 389
Share preniun vii 122 120
OIher reserves vii 5S 63
lroIiI and loss accounI vii 326 497
5hareho|ders' funds - equity S97 1,069
The accounIs were approved by Ihe Board oI DirecIors on 27 lebruary 2013 and were signed on iIs behalI by.
.)6 Q+5??5$",
DirecIor
!56 %78 :+2%9"B =*"9"8*97 ;&9&$2$"&.
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!"#$%#&'()*+,&,-.
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5 E77#46$56T =#85752,
V),5, #? =+2=)+)$5#6
These accounIs have been prepared in accordance wiIh UK
Generally AccepIed AccounIing lracIice (UK GAAl).
As perniIIed by secIion 408 (3) oI Ihe Conpanies AcI 2006,
a separaIe proIiI and loss accounI, dealing wiIh Ihe resulIs
oI Ihe parenI conpany, has noI been presenIed.
Under lPS 29 Ihe Conpany is exenpI Iron Ihe requirenenI
Io provide iIs own Iinancial insIrunenIs disclosures, on Ihe
grounds IhaI iI is included in publicly available consolidaIed
Iinancial sIaIenenIs which include disclosures IhaI conply
wiIh Ihe llPS equivalenI Io IhaI sIandard.
The Conpany has Iaken advanIage oI Ihe lPS 1 exenpIion
Iron Ihe requirenenI Io prepare and disclose a cash Ilow
sIaIenenI.
94&,5A5)+52,
Subsidiaries are enIiIies IhaI are direcIly or indirecIly
conIrolled by Ihe Conpany. ConIrol exisIs where Ihe
Conpany has Ihe power Io govern Ihe Iinancial and
operaIing policies oI Ihe enIiIy so as Io obIain beneIiIs Iron
iIs acIiviIies. The invesInenI in Ihe Conpany's subsidiaries
is recorded aI cosI, adjusIed Ior Ihe eIIecI oI UlTl 41
when iI was adopIed in prior years. Annual lPS 20 share-
based paynenI conpensaIion cosIs are recharged Io Ihe
subsidiaries Ihrough Ihe proIiI and loss accounI.
*#+25T6 74++267' $+)6,)7$5#6,
TransacIions in Ioreign currencies are IranslaIed inIo sIerling
aI Ihe raIe oI exchange ruling aI Ihe daIe oI Ihe IransacIion.
loreign currency noneIary asseIs and liabiliIies aI Ihe
balance sheeI daIe are IranslaIed inIo sIerling aI Ihe raIe oI
exchange ruling aI IhaI daIe. loreign exchange diIIerences
arising on IranslaIion are recognised in Ihe proIiI and loss
accounI. Non-noneIary asseIs and liabiliIies neasured
aI hisIorical cosI are IranslaIed inIo sIerling aI Ihe raIe oI
exchange on Ihe daIe oI Ihe IransacIion.
V#++#I56T,
Borrowings are recognised iniIially aI Iair value including
direcIly aIIribuIable IransacIion cosIs, wiIh subsequenI
neasurenenI aI anorIised cosI using Ihe eIIecIive inIeresI
raIe neIhod. The diIIerence beIween iniIial Iair value and
Ihe redenpIion value is recorded in Ihe proIiI and loss
accounI over Ihe period oI Ihe liabiliIy on an eIIecIive
inIeresI basis.
Derivatives and other hnancia| instruments
The Conpany uses a liniIed nunber oI derivaIive Iinancial
insIrunenIs Io hedge iIs exposure Io IlucIuaIions in inIeresI
and oIher Ioreign exchange raIes. The Conpany does
noI hold or issue derivaIive insIrunenIs Ior speculaIive
purposes.
DerivaIive Iinancial insIrunenIs are iniIially recognised aI
Iair value and are subsequenIly reneasured aI Iair value
wiIh Ihe novenenI recorded in Ihe proIiI and loss accounI
wiIhin neI Iinancing cosIs. DerivaIives wiIh posiIive Iair
values are recorded as asseIs and negaIive Iair values as
liabiliIies.
The Iair value oI Ioreign currency Iorward conIracIs is
deIernined by using Ihe diIIerence beIween Ihe conIracI
exchange raIe and Ihe quoIed Iorward exchange raIe aI
Ihe balance sheeI daIe. The Iair value oI inIeresI raIe swaps
is Ihe esIinaIed anounI IhaI Ihe Conpany would receive
or pay Io IerninaIe Ihe swap aI Ihe balance sheeI daIe,
Iaking inIo accounI currenI inIeresI raIes and Ihe currenI
crediIworIhiness oI swap counIerparIies.
Third parIy valuaIions are used Io Iair value Ihe Conpany's
derivaIives. The valuaIion Iechniques use inpuIs such
as inIeresI raIe yield curves and currency prices/yields,
volaIiliIies oI underlying insIrunenIs and correlaIions
beIween inpuIs.
Where a derivaIive Iinancial insIrunenI is designaIed as a
hedge oI Ihe variabiliIy in cash Ilows oI a recognised asseI
or liabiliIy, or a highly probable IorecasI IransacIion, Ihe
eIIecIive parI oI any gain or loss on Ihe derivaIive Iinancial
insIrunenI is recognised direcIly in equiIy. Any ineIIecIive
porIion oI Ihe hedge is recognised innediaIely in Ihe proIiI
and loss accounI.
lor Iinancial asseIs and liabiliIies classiIied aI Iair value
Ihrough proIiI or loss Ihe Iair value change and inIeresI
incone/expense are noI separaIed.
@5>5A26A,
Dividends are recognised Ihrough equiIy on Ihe earlier
oI Iheir approval by Ihe Conpany's shareholders or Iheir
paynenI.
55 U:=8#'22,
Two (2011. Iwo) DirecIors oI lTV plc were enployees oI Ihe
Conpany during Ihe year, boIh oI whon renain aI Ihe year
end. The cosIs relaIing Io Ihese DirecIors are disclosed in Ihe
PenuneraIion PeporI.
L+&$. &+ &0$ !56 %78 :+2%9"B =*"9"8*97 ;&9&$2$"&.
!!"#$%"& ##(#!(!"#! )*++, -.+
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!""#$% '()*+, $"- !..*#",/ 0120
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!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
555 .6>2,$:26$, 56 ,4&,5A5)+' 46A2+$)K56T,
The principal subsidiary underIakings are lisIed in noIe xi.
There was no novenenI on Ihe balance oI 1,646 nillion
in 2012.
5> E:#46$, #I2A L$#M-?+#: ,4&,5A5)+'
46A2+$)K56T,
The Conpany operaIes an inIer-group banking policy wiIh
cerIain 100% owned UK subsidiaries. The policy involves
Ihe daily closing cash posiIion Ior parIicipaIing subsidiaries
wheIher posiIive or negaIive, being cleared Io nil via daily
bank IransIers Io lTV plc. These daily IransacIions creaIe a
corresponding inIerconpany crediIor or debIor which can
resulI in signiIicanI novenenIs in anounIs owed Io and
Iron subsidiary underIakings in Ihe Conpany balance sheeI.
> V#++#I56T,
]#)6, +2=)')&82 )?$2+ :#+2 $")6 #62 '2)+
loans repayable aIIer nore Ihan one year as aI 31 Decenber
2012 include.
- an unsecured t50 nillion Lurobond (15 nillion neI
oI cross currency swaps) which has a coupon oI 10.0%
naIuring in June 2014,
- an unsecured 78 nillion Lurobond which has a coupon oI
5.375% naIuring in OcIober 2015,
- an unsecured 135 nillion converIible Lurobond which
has a coupon oI 4.0% naIuring in Novenber 2016,
- an unsecured 161 nillion Lurobond which has a coupon
oI 7.375% naIuring in January 2017, and
- a 200 nillion covenanI Iree loan raised in lebruary 2009
wiIh a naIuriIy oI March 2019. lnIeresI on Ihe loan is aI a
variable raIe, likely Io be 13.55%, depending in parI on Ihe
perIornance oI an inIeresI raIe algoriIhn.
>5 D)882A 4= ,")+2 7)=5$)8
2012
m
AuIhorised
2011
n
2012
m
AlloIIed,
issued
and Iully
paid
2011
n
Ordinary shares oI 10 pence
each
AuIhorised.
8,000,000,000
(2011. 8,000,000,000) S00 800
AlloIIed, issued and Iully paid.
3,912,026,854
(2011. 3,889,129,751) 391 389
ToIal S00 800 391 389
The Conpany's ordinary shares give shareholders equal
righIs Io voIe, receive dividends and Io Ihe repaynenI oI
capiIal. The Conpany issued 22.9 nillion new ordinary
shares during Ihe period, Ior IoIal consideraIion oI 4
nillion.
>55 127#67585)$5#6 #? :#>2:26$, 56
,")+2"#8A2+,^ ?46A,
Share
capiIal
n
Share
preniun
n
OIher
reserves
n
lroIiI
and loss
accounI
n
ToIal
n
AI 1 January 2011 389 120 67 32 608
MovenenI Ior year (4) 465 461
At 31 December 2011 3S9 120 63 497 1,069
PeIained proIiI Ior year
Ior equiIy shareholders (107) (107)
Share-based
conpensaIion 9 9
LxIernal dividend paid (78) (78)
LquiIy porIion oI Ihe
converIible bond (5) 5
lssue oI shares 2 2 4
At 31 December 2012 391 122 5S 326 S97
The loss aIIer Iax Ior Ihe year dealI wiIh in Ihe accounIs oI
lTV plc is 107 nillion (2011. proIiI oI 466 nillion).
The proIiI and loss accounI reserves oI 326 nillion aI
31 Decenber 2012 are all disIribuIable.
The Conpany received no dividends in 2012.
The DirecIors oI Ihe Conpany propose a Iinal dividend oI
1.8p per share and a special dividend oI 4.0p per share.
>555 D#6$56T26$ 85)&585$52,
Under a group regisIraIion, Ihe Conpany is joinIly and
severally liable Ior VAT aI 31 Decenber 2012 oI 33
nillion (31 Decenber 2011. 35 nillion). The Conpany has
guaranIeed cerIain Iinance and operaIing lease obligaIions
oI subsidiary underIakings.
L+&$. &+ &0$ !56 %78 :+2%9"B =*"9"8*97 ;&9&$2$"&. 8+"&*")$#
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There are conIingenI liabiliIies in respecI oI cerIain liIigaIion
and guaranIees, broadcasIing issues, and in respecI oI
warranIies given in connecIion wiIh cerIain disposals oI
businesses. None oI Ihese iIens are expecIed Io have a
naIerial eIIecI on Ihe Group's resulIs or Iinancial posiIion.
Where Ihe Conpany enIers inIo Iinancial guaranIee
conIracIs Io guaranIee Ihe indebIedness oI oIher conpanies
wiIhin iIs Group, Ihe Conpany considers Ihese Io be
insurance arrangenenIs, and accounIs Ior Ihen as such. ln
Ihis respecI, Ihe Conpany IreaIs Ihe guaranIee conIracI as
a conIingenI liabiliIy unIil such Iine as iI becones probable
IhaI Ihe Conpany will be required Io nake a paynenI under
Ihe guaranIee.
53 D)=5$)8 )6A #$"2+ 7#::5$:26$,
There are no capiIal conniInenIs aI 31 Decenber 2012
(2011. none).
3 128)$2A =)+$' $+)6,)7$5#6,
/+)6,)7$5#6, I5$" K2' :)6)T2:26$ =2+,#6628
Key nanagenenI consisIs oI lTV plc LxecuIive DirecIors.
Key nanagenenI personnel conpensaIion is as Iollows.
2012
m
2011
n
ShorI-Iern enployee beneIiIs 3 2
Share-based conpensaIion 4 2
7 4
35 !+5675=)8 ,4&,5A5)+' 46A2+$)K56T, )6A
56>2,$:26$,
!+5675=)8 ,4&,5A5)+' 46A2+$)K56T,
The principal subsidiary underIakings oI Ihe Conpany aI
31 Decenber 2012, all oI which are wholly owned (direcIly or
indirecIly) and incorporaIed and regisIered in Lngland and
Wales excepI where sIaIed, are.
Nane lrincipal acIiviIy
lTV BroadcasIing liniIed BroadcasI oI Ielevision progrannes
lTV NeIwork liniIed Scheduling and connissioning Ielevision progrannes
lTV2 liniIed OperaIion oI digiIal Ielevision channels
lTV DigiIal Channels liniIed OperaIion oI digiIal Ielevision channels
lTV BreakIasI liniIed lroducIion and broadcasI oI breakIasI Iine Ielevision under
naIional Channel 3 licence
lTV Consuner liniIed DevelopnenI oI plaIIorns, broadband, IransacIional and nobile services
SDN liniIed OperaIion oI lreeview MulIiplex A
lTV SIudios liniIed lroducIion oI Ielevision progrannes
lTV SIudios, lnc.
1
lroducIion oI Ielevision progrannes
lTV SIudios Gernany Gnbl
2
(Iornerly Granada
lrodukIion Ir liln und lernsehen Gnbl) lroducIion oI Ielevision progrannes
lTV SIudios AusIralia lIy liniIed (Iornerly Granada
Media AusIralia lIy liniIed)
3
lroducIion oI Ielevision progrannes
12 Yard lroducIions (lnvesInenIs) liniIed lroducIion oI Ielevision progrannes
lnago TV liln und lernsehprodukIion Gnbl
2, 4
lroducIion oI Ielevision progrannes
3sixIynedia liniIed
4
Supplier oI IaciliIies Ior Ielevision producIions
lTV Global LnIerIainnenI liniIed PighIs ownership and disIribuIion oI Ielevision progrannes and Iilns
lTV VenIures liniIed (Iornerly Granada VenIures liniIed) lroducIion and disIribuIion oI video and DVD producIs
lTV Global LnIerIainnenI, lnc
1
DisIribuIion oI Ielevision progrannes
lTV Services liniIed lrovision oI services Ior oIher conpanies wiIhin Ihe Group
CarlIon ConnunicaIions liniIed lolding conpany
Granada liniIed lolding conpany
lTV ScoIIish liniIed larInership
5
lolding conpany
lTV BreakIasI BroadcasIing liniIed BroadcasI oI Ielevision progrannes
Gurney lroducIions llC
1,6
lroducIion oI Ielevision progrannes
1
lncorporaIed and regisIered in Ihe USA.
2
lncorporaIed and regisIered in Gernany.
3
lncorporaIed and regisIered in AusIralia.
4
80% owned
5
99.9% owned SlL parInership wiIh Ihe renaining inIeresI held by Ihe lTV pension schene. lully consolidaIed in Ihe Group accounIs. lncorporaIed and regisIered in ScoIland holding
Ihe ownership inIeresI in SDN. The Group has Iaken advanIage oI Ihe exenpIion conIerred by PegulaIion 7 oI Ihe larInership (AccounIs) PegulaIions 2008 and has, IhereIore, noI
appended Ihe accounIs oI Ihis qualiIying parInership Io Ihese accounIs. SeparaIe accounIs Ior Ihe parInership are noI required Io be, and have noI been, Iled aI Conpanies louse.
6
61.5% owned
!!"#$%"& ##(#!(!"#! )*++, -.+
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!""#$% '()*+, $"- !..*#",/ 0120
RNH
!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
A lisI oI all subsidiary underIakings will be included in Ihe Conpany's annual reIurn Io Conpanies louse.
>,*"8*%97 F+*"& <$"&),$.E 9..+8*9&$# )"#$,&9]*"?. 9"# *"<$.&2$"&.
The Conpany indirecIly held aI 31 Decenber 2012 Ihe Iollowing inIeresIs in signiIicanI joinI venIures, associaIed
underIakings and invesInenIs.
Nane NoIe
Interest in
ordinary
share capita|
2012
%
lnIeresI in
ordinary
share capiIal
2011
% lrincipal acIiviIy
lreesaI (UK) liniIed a 50.00 50.00
lrovision oI a sIandard and high deIiniIion
enabled digiIal saIelliIe proposiIion
DigiIal 3&4 liniIed a 50.00 50.00
OperaIes Ihe Channel 3 and 4 digiIal IerresIrial
nulIiplex
YouView TV liniIed a 14.30 14.30 lnIerneI connecIed Ielevision plaIIorn
Noho liln and Television liniIed a 50.00 Television drana and Iiln producIion conpany
lndependenI Television News liniIed b 40.00 40.00
Supply oI news services Io broadcasIers
in Ihe UK and elsewhere
MannoIh Screen liniIed b 25.00 25.00 lroducIion oI Ielevision progrannes
lSAN UK liniIed b 25.00 25.00
OperaIes volunIary nunbering sysIen Ior Ihe
idenIiIicaIion oI audiovisual works
STV Group plc
1
c 6.79 6.79 Television broadcasIing in ScoIland
1
lncorporaIed and regisIered in ScoIland. a JoinI venIure.
b AssociaIed underIaking.
c Available Ior sale Iinancial asseI.
L+&$. &+ &0$ !56 %78 :+2%9"B =*"9"8*97 ;&9&$2$"&. 8+"&*")$#
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9")+2"#8A2+ =+#?582
lolders
Nunber %
Shares held
Millions %
Type of ho|der:
lnsurance conpanies 8 0.01 0 0
Banks and noninee conpanies 2,239 3.56 3,744 95.71
lndividuals 60,253 95.87 128 3.27
OIhers 352 0.56 40 1.02
ToIals 100.00 100.00
5ize of ho|ding:
1 100 9,804 15.60 354,179 0.01
101 200 8,552 13.61 1,282,312 0.03
201 500 16,563 26.35 5,342,690 0.14
501 1,000 10,455 16.63 7,662,671 0.20
1,001 2,000 8,056 12.82 11,556,272 0.30
2,001 5,000 5,443 8.66 16,790,265 0.43
5,001 10,000 1,786 2.84 12,759,878 0.33
10,001 50,000 1,307 2.08 26,257,282 0.67
50,001 100,000 172 0.27 12,163,481 0.31
100,001 500,000 301 0.48 74,706,235 1.91
500,001 1,000,000 118 0.19 85,152,790 2.18
1,000,001 5,000,000 197 0.31 447,954,072 11.44
5,000,001 10,000,000 34 0.05 227,725,241 5.82
10,000,001 50,000,000 48 0.08 964,033,478 24.64
50,000,001 and above 16 0.03 2,018,286,008 51.59
ToIals 100.00 100.00
lnIornaIion as aI 31 Decenber 2012.
;09,$0+7#$, !"4+,29&*+"
!!"#$%"& ##(#!(!"#! )*++, -.+
/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
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!"#$%#&'()*+,&,-.
!"#$% $#'() *+,
/'0!0,'!+ 2(!(3.30(4
12T5,$+)+, )6A $+)6,?2+ #??572
All adninisIraIive enquiries relaIing Io shareholdings and
requesIs Io receive corporaIe docunenIs should, in Ihe IirsI
insIance, be direcIed Io CapiIa PegisIrars, The PegisIry,
34 Beckenhan Poad, Beckenhan, BP3 4TU.
They can be conIacIed by Ielephone on 0S71 664 0300
(calls cosI 10 pence per ninuIe plus neIwork charges) Iron
Ihe UK and +44 20 S639 3399 Iron ouIside Ihe UK. lines
are open Monday Io lriday 8.30 a.n. Io 5.30 p.n.
AlIernaIively you could enail Ihen aI.
ssd@capitaregistrars.com
Shareholders who receive duplicaIe seIs oI Conpany
nailings because Ihey have nulIiple accounIs should wriIe
Io CapiIa Io have Ihe accounIs analganaIed.
By logging on Io www.capitashareporta|.com shareholders
can beneIiI Iron a nunber oI online services as Iollows.
- CasI your proxy voIe online,
- LlecI Io receive shareholder connunicaIion
elecIronically,
- View your holding balance, indicaIive share price and
valuaIion,
- View IransacIions on your holding and dividend paynenIs
you have received,
- UpdaIe your address or regisIer a bank nandaIe
insIrucIion Io have dividends paid direcIly Io your bank
accounI, and
- Access a wide range oI shareholder inIornaIion including
downloadable Iorns.
You will need your invesIor code (lVC) which can be Iound on
your share cerIiIicaIe(s) Io regisIer Io use Ihe Shareholder
lorIal.
9")+2 A2)856T ,2+>572,
The Conpany's shares can be Iraded Ihrough nosI banks,
building socieIies and sIockbrokers. AddiIionally, Ihe
Conpany's PegisIrars oIIer online and Ielephone dealing
Ior UK residenI shareholders Ihrough CapiIa lPG TrusIees
liniIed. To use Ihis service shareholders should conIacI
CapiIa.
Te|ephone: 0S71 664 0364 Iron Ihe UK (calls cosI 10 pence
per ninuIe plus neIwork charges) or 1 S90 946 375 Ior
lreland lo-call and +44(0) 203 367 26S6 Iron ouIside Ihe UK.
lines are open Monday Io lriday 8.00 a.n. Io 4.30 p.n.
www.capitadea|.com
9")+2Q5?$
ShareGiII is a chariIy share donaIion schene Ior
shareholders who nay wish Io dispose oI a snall quanIiIy oI
shares where Ihe narkeI value nakes iI unecononic Io sell
on a connission basis. The schene is adninisIered by Ihe
Orr MackinIosh loundaIion and IurIher inIornaIion can be
obIained by conIacIing Ihen.
020 7930 3737
www.sharegift.org
9")+2 =+572 56?#+:)$5#6
The currenI price oI lTV plc ordinary shares is available on
Ihe Conpany websiIe aI www.itvp|c.com.
_6,#8575$2A :)58
The Conpany is legally obliged Io nake iIs regisIer oI
nenbers available Io Ihe public. As a consequence oI
Ihis sone shareholders nighI receive unsoliciIed nail.
Shareholders wishing Io liniI Ihe anounI oI such nail
should wriIe Io Ihe Mailing lreIerence Service (MlS).
lPLLlOST 29 lON20771
london
W1L 0ZT
AlIernaIively you can regisIer online or requesI an
applicaIion Iorn by Ielephone or by enail. MlS will Ihen
noIiIy Ihe bodies IhaI supporI iIs service IhaI you do noI
wish Io receive unsoliciIed nail.
0S45 703 4599
mps@dma.org.uk
www.mpson|ine.org.uk
12T5,$2+2A #??572
The london Television CenIre
Upper Ground
london
SL1 9lT
020 7157 3000
Conpany regisIraIion nunber 4967001
;09,$0+7#$, !"4+,29&*+" 8+"&*")$#
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lnvesIor and shareholder relaIed inIornaIion can be Iound
on Ihe Conpany websiIe aI.
www.itvp|c.com
*56)675)8 7)826A)+
Annual General MeeIing 15 May 2013
lnIerin ManagenenI SIaIenenI May 2013
lalI year resulIs announcenenI July 2013
_6)4$"#+5,2A &+#K2+, LV#582+ 1##: 97):,M
Shareholders are advised Io be wary oI any unsoliciIed
advice, oIIers Io buy shares aI a discounI or oIIers oI Iree
conpany reporIs. These are Iypically Iron overseas based
brokers who IargeI UK shareholders oIIering Io sell Ihen
whaI oIIen Iurn ouI Io be worIhless or high risk shares in US
or UK invesInenIs. These operaIions are connonly known
as boiler roons.
lI you receive any unsoliciIed invesInenI advice.
- Make sure you geI Ihe correcI nane oI Ihe person and
organisaIion.
- Check IhaI Ihey are properly auIhorised by Ihe lSA beIore
geIIing involved by visiIing.
www.fsa.gov.uklpageslregister
- PeporI Ihe naIIer Io Ihe lSA eiIher by calling Iheir
Consuner lelpline 0845 606 1234 or by conpleIing an
online Iorn aI.
www.fsa.gov.uklpagesldoinglregu|atedl|awla|ertslform.shtm|
- lI Ihe calls persisI, hang up.
lI you deal wiIh an unauIhorised Iirn, you will noI be
eligible Io receive paynenI under Ihe linancial Services
ConpensaIion Schene.
DeIails oI any sharedealing IaciliIies IhaI Ihe Conpany
endorses will only be included in Conpany nailings.
Keep in nind IhaI iI is very unlikely IhaI an auIhorised Iirn
IhaI you have no relaIionship wiIh would conIacI you ouI
oI Ihe blue oIIering Io buy or sell shares or oIIer oIher
invesInenI opporIuniIies.
More deIailed inIornaIion can be Iound on Ihe lSA websiIe.
www.fsa.gov.uklfsaregisterluse
www.fsa.gov.uklpageslregisterluselprotect_yourse|f
.A26$5$' $"2?$
Tips Ior proIecIing your lTV plc shares.
- Lnsure all your cerIiIicaIes are kepI in a saIe place or hold
your shares elecIronically in CPLST via a noninee.
- Keep all correspondence Iron CapiIa in a saIe place, or
desIroy correspondence by shredding.
- lI you change address inIorn CapiIa in wriIing or via Ihe
Shareholder lorIal. lI you receive a leIIer Iron CapiIa
regarding a change oI address buI have noI recenIly
noved please conIacI Ihen innediaIely.
- Consider having your dividend paid direcIly inIo your bank.
This will reduce Ihe risk oI Ihe cheque being inIercepIed
or losI in Ihe posI.
- lI you change your bank accounI, inIorn CapiIa oI Ihe
deIails oI your new accounI. You can do Ihis via posI or
online using Ihe Shareholder lorIal. Pespond Io any
leIIers CapiIa sends you abouI Ihis.
- lI you are buying or selling shares only deal wiIh brokers
regisIered in your counIry oI residence or Ihe UK.
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/-0 123
!""#$% '()*+, $"- !..*#",/ 0120
RHG
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2012
m
2011
n
2010
n
2009
n
2008
n
Pesu|ts
Pevenue 2,196 2,140 2,064 1,879 2,029
Larnings beIore inIeresI, Iax and anorIisaIion (LBlTA) beIore
excepIional iIens 520 462 408 202 211
AnorIisaIion oI inIangible asseIs (57) (59) (63) (59) (66)
lnpairnenI oI inIangible asseIs (3) (2,695)
Share oI losses oI joinI venIures and associaIed underIakings (1) (2) (3) (7) (15)
lnvesInenI incone - 1
LxcepIional iIens (12) 1 19 (20) (108)
lroIiI/(loss) beIore inIeresI and Iax 447 402 361 116 (2,672)
NeI Iinancing cosIs (99) (75) (75) (91) (60)
lroIiI/(loss) beIore Iax 34S 327 286 25 (2,732)
TaxaIion (charge)/crediI (S0) (79) (16) 69 178
lroIiI/(loss) aIIer Iax 26S 248 270 94 (2,554)
Non-conIrolling inIeresIs (1) (1) (1) (3) (2)
lroIiI/(loss) Ior Ihe Iinancial year 267 247 269 91 (2,556)
Basic earnings/(loss) per share 6.9p 6.4p 6.9p 2.3p (65.9)p
AdjusIed earnings per share 9.2p 7.9p 6.4p 1.8p 1.8p
Dividend per share 2.6p 1.6p 0.675p
Special dividend per share 4.0p
Conso|idated statement of financia| position
Share capiIal 391 389 389 389 389
Peserves 426 417 272 (44) 137
ToIal equiIy aIIribuIable Io equiIy shareholders oI Ihe
parenI conpany S17 806 661 345 526
Non-conIrolling inIeresIs 15 3 2 1 8
NeI asseIs S32 809 663 346 534
PepresenIed by.
lroperIy, planI and equipnenI and inIangible asseIs 1,0SS 1,101 1,120 1,191 1,360
lnvesInenIs 9 5 5 6 71
DisIribuIion righIs 17 11 12 16 13
lnvenIory 250 285 284 388 516
Trade and oIher receivables (including asseIs held Ior sale and
derivaIive Iinancial insIrunenIs) 47S 475 511 565 528
DeIerred Iax asseI 93 65 73 50
ToIal asseIs 1,935 1,942 2,005 2,216 2,488
NeI cash/(debI) 206 45 (188) (612) (730)
DeIerred Iax liabiliIy - (55)
OIher liabiliIies (1,272) (1,145) (1,105) (1,182) (1,085)
lrovisions (37) (33) (49) (76) (84)
S32 809 663 346 534
=*"9"8*97 /$8+,#
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I4,##0*=
Ana|ogue switch off IerninaIion in 2012 oI Ihe analogue
IerresIrial Ielevision signal in Ihe regions in which iI is sIill broadcasI.
BBC1, BBC2, lTV, Channel 4 and Channel 5 were broadcasI in
analogue
Broadcasters' Audience Pesearch Board (BAPB) organisaIion
owned by broadcasIers and adverIisers providing daIa on Ielevision
viewing sIaIisIics in UK households
Catch up viewing non-live viewing oI recenIly broadcasI Ielevision
progrannes, eiIher via a recording device (oIIen called a lVP or
DTP) such as Sky+ or Ihrough a Video on Denand service such as lTV
llayer, BBC illayer, 4oD or Denand 5
Channe| 3 |icences Ihe 15 regional licences and one naIional
licence awarded Io IransniI Channel 3 across Ihe UK. All are owned
by lTV wiIh Ihe excepIion oI Ihree oI Ihe regional licences, Iwo oI
which are owned by STV and one by UTV
Contract Pights Penewa| (CPP) Ihe renedy agreed by CarlIon
and Granada in 2003 as a pre-condiIion oI Ihe nerger, which
governs Ihe way in which lTV airIine is sold by lTV Io iIs adverIising
cusIoners
Free-to-Air (FTA) te|evision viewing oI Ielevision Ihrough devices
noI requiring nonIhly subscripIions such as Ihe lreeview or lreesaI
services
High Denition (HD) channels or services broadcasI in
subsIanIially higher resoluIion Ihan sIandard, providing inproved
picIure qualiIy
Impact or Commercia| Impact one Connercial lnpacI is deIned
as one viewer waIching one 30-second Ielevision connercial
ITV Fami|y Ihe lTV lanily oI channels which includes lTV, lTV2,
lTV3, lTV4, ClTV, lTV BreakIasI, ClTV BreakIasI and all associaIed +1
and lD equivalenIs. Viewing Igures include Ihe whole oI Ihe lTV
neIwork. Pevenue Igures include only lTV plc operaIed regions
Long form video views video views are a neasure oI Ihe IoIal
nunber oI videos viewed across all plaIIorns (such as iIv.con, Virgin
and nobile devices). A long Iorn video is a progranne IhaI has
been broadcasI on Ielevision and is available Io waIch online and on
denand in iIs enIireIy
Media sa|es connission earned by lTV plc on sales oI airIine on
behalI oI Ihe non-consolidaIed licensees
Net Advertising Pevenues (NAP) Ihe anounI oI noney received
by a broadcasIer as paynenI Ior Ielevision spoI adverIising neI oI
any connission paid Io agencies
Network Programme Budget (NPB) Ihe budgeI spenI on
progranning broadcasI on Ihe lTV channel, excluding spend on
regional progranning and lTV BreakIasI
Non-conso|idated |icensees Ihe Ihree regional channel 3 licences
which lTV does noI own. These licences are owned by STV and UTV
and revenues received Iron Ihese licences Ior lTV progranning
conIenI are reIerred Io as ninoriIy revenues
Non-NAP revenues non-NAP revenues includes all lTV revenues,
boIh inIernal and exIernal, excepI neI adverIising revenues (NAP).
This includes inIer-segnenI revenues Iron Ihe sale oI lTV SIudios
shows Io Ihe lTV NeIwork
Non-spot advertising revenues adverIising revenues received
Ior services oIher Ihan IradiIional Ielevision connercials. lncludes
sponsorship and producI placenenI revenues
Cfcom Ihe regulaIor esIablished Io govern UK broadcasIing as
well as oIher areas oI Ihe nedia and Ielephony indusIry
Premium Pate 5ervices (PP5) revenue generaIed Iron voIes and
conpeIiIions run on broadcasI conIenI
Product p|acement Ihe inclusion oI, or reIerence Io, a producI or
service wiIhin a progranne in reIurn Ior paynenI or oIher valuable
consideraIion Io Ihe progranne naker or broadcasIer
5DN nulIiplex operaIor owned by lTV which operaIes one oI
Ihe six digiIal IerresIrial nulIiplex licences in Ihe UK IhaI nake up
lreeview
5hare of Broadcast (5CB) lTV's share oI UK Ielevision adverIising
revenues (NAP), a neasure oI narkeI share
5hare of Commercia| Impacts (5CCI) Ihe Iern used Io deIne Ihe
share oI IoIal UK Ielevision connercial inpacIs which is delivered by
one channel or group oI channels. This neasure excludes viewing oI
BBC channels as Ihey do noI generaIe connercial inpacIs. Unless
sIaIed oIherwise, SOCl Igures ciIed IhroughouI Ihis reporI are based
on BAPB daIa and are based on Ihe universe oI AdulIs (16+)
5hare of Viewing (5CV) Ihe share oI Ihe IoIal viewing audience
during a deIned period gained by a progranne or channel. This
neasure includes viewing oI BBC channels. Unless sIaIed oIherwise,
SOV Igures ciIed IhroughouI Ihis reporI are based on BAPB daIa
and are based on Ihe universe oI lndividuals
5ub-demographics subseIs oI individuals used Ior neasuring
parIicular audience Iypes. lor exanple, nen, wonen, 16 Io 34 year
olds and housewives
Tota| Va|ue exp|oitation approach Io connissioning and brand
exploiIaIion adopIed by lTV which inIends Io naxinise Ihe liIeIine
revenues Iron our sIrongesI brands
Video on Demand (VCD) Ihe abiliIy Io deliver video conIenI Io a
cusIoner's Ielevision seI, conpuIer or device when Ihe cusIoner
requesIs iI
YouView a joinI venIure (wiIh Ihe BBC, Channel 4, Channel 5,
BriIish Telecon, TalkTalk, and Arqiva) Io operaIe and pronoIe a
hybrid TV plaIIorn conbining lreeview channels wiIh caIch up and
on denand services.
This Annual PeporI is prinIed by an lSC

(loresI SIewardship
Council), cerIiIied prinIer using vegeIable based inks.
This reporI has been prinIed on NovaIech naII, a whiIe coaIed
paper and board using 100% LlC pulp.
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lTV plc
The london Television CenIre
Upper Ground
london
SL1 9lT
www.itv.com
lnvesIors.
www.itvp|c.com
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