Debt investors

	FY11 ($m)	FY10 ($m)
EBITDA	817	733
Interest expense	(86)	(36)
Interest income	40	29
Net interest income/(expense)	(46)	(7)
Debt	(1,478)	(1,489)
Cash	2,359	3,229
Net cash/(debt)	881	1,740

Our debt structure currently consists of:

• $2,430 million committed syndicated bank facility (matures June 2012/13)
• $226 million (due August 2013) and €600 million (due February 2015) of senior unsecured fixed-rate notes, issued under our $3,000 million European Medium-Term Note (EMTN) programme
• $168 million subordinated floating rate notes (due September 2015)
• $231 million subordinated fixed rate notes (due August 2017)
• $300 million fixed-rate perpetual subordinated capital securities, which qualify as Tier 1 regulatory capital.

Our strategy is to continue to diversify our funding, both in terms of sources and tenor. To that end, we intend to use the EMTN programme to access the debt capital markets when opportunities arise, either through benchmark public issues or private placements.

We will also consider accessing the debt capital markets via alternative routes if there are appropriate opportunities. We are prepared to issue debt in a range of tenors and in both fixed and floating interest rates.

Our functional currency is the US dollar and, therefore, our preference is to issue debt denominated in US dollars. However, we are prepared to issue debt in other currencies and manage the exchange rate risk separately.

Current credit ratings for Man:

	Long term senior	Ratings report
Fitch	BBB
Moody's	Baa2
Standard and Poor's	BBB

Innovative Tier 1 Perpetual Subordinated Capital Securities
On 7 May 2008 Man issued $300 million US$ RegS Fixed Rate Perpetual Subordinated Capital Securities (Capital Securities). The Capital Securities have a perpetual maturity date with optional par redemption at Man’s discretion on 7 May 2013 and any coupon date thereafter. The interest rate is 11% per annum quarterly in arrears and is deferrable at the discretion of Man.

Floating Rate Notes
On 21 September 2005 Man issued $400 million fixed rate notes due September 2015 (the “2015 Subordinated Notes”). The 2015 Subordinated Notes have an interest rate of US dollar three-month LIBOR plus 1.65%, payable quarterly in arrears up to and including the maturity date. Man has the option to call the notes at par on any interest payment date. Of these 2015 Subordinated Notes, $168 million remain outstanding as a result of a liability management exercise (see 2017 Subordinated Notes below).

Euro Medium Term Note Programme
Under the U.S.$3,000,000,000 Euro Medium Term Note Programme (the Programme), Man may from time to time issue notes denominated in any currency agreed between the Issuer and the relevant Dealer. The maximum aggregate nominal amount of all Notes from time to time outstanding under the Programme will not exceed U.S.$3,000,000,000. On 1 August 2008 Man issued $250 million senior fixed rate notes due August 2013 (the “2013 Senior Notes”). Of these 2013 Senior Notes, $233 million remain outstanding. The coupon is 6.5% per annum payable semi-annually in arrears up to and including the maturity date. On 18 February 2010 Man issued €600 million senior fixed rate notes due August 2015 (the “2015 Senior Notes”). The 2015 Senior Notes have a fixed coupon of 6.0% per annum payable annually in arrears up to and including the maturity date. On 09 August 2010 Man issued $232 million subordinated fixed rate notes due August 2017 (the “2017 Subordinated Notes”). This was as a result of a liability management exercise in relation to the 2015 Subordinated Notes. The 2017 Subordinated Notes have a fixed coupon of 5.0% per annum payable annually in arrears up to and including the maturity date.