Actually, CAPEX is in the P&L for AFL. At least that was the...

Actually, CAPEX is in the P&L for AFL. At least that was the point I was trying to make.

They are investing in growth. Part of this investment for growth is happening through the software development, digital markets, etc - all of which they call "AFL 2.0". The intent of these investments is to grow future revenue streams. While there are some benefits in the current financial year, most of the benefits will be accrued over time in the forward years. By increasing people's awareness of AFL in key markets, by increasing their ability to generate and follow up on leads, they will improve their market share via organic growth. This would fit under any description of 'growth CAPEX' imho.

But it's in their P&L statement. Those costs are expensed up front, not depreciated. As they are growing, they are also increasingly investing in these areas (e.g. 8% of revenue into marketing - a ridiculously high figure that eventually will plateau as they take market share). By expensing it in the P&L today, their profit looks abnormally low in the early years, but will improve much greater in the future years. At least, that's the theory as long as their "CAPEX" has decent return on investment (i.e. actually generate leads and results in sustainable organic growth).

Sometimes I feel there is an advantage to being an investor, not an accountant.