Corporate and operating measures
Sales – underlying and constant exchange rate movement
Sales movement for continuing operations excluding the impact of acquisitions and disposals and movements in exchange rates.
| All figures in £ millions | 2009 |
|---|---|
| Underlying increase | 74 |
| Portfolio changes | 99 |
| Exchange differences | 640 |
| Total sales increase | 813 |
| Underlying increase | 2% |
| Constant exchange rate increase | 4% |
Adjusted income statement
Reconciliation of the consolidated income statement to the adjusted numbers presented as non-GAAP measures in the financial statements.
| 2009 | ||||||
|---|---|---|---|---|---|---|
| All figures in £ millions | Statutory income statement | Other net gains and losses | Amortisation of acquired intangibles | Other net finance income/costs | Tax amortisation benefit | Adjusted income statement |
| Operating profit | 755 | – | 103 | – | – | 858 |
| Net finance costs | (98) | – | – | (2) | – | (97) |
| Profit before tax | 660 | – | 103 | (2) | – | 761 |
| Income tax | (198) | – | (37) | 1 | 40 | (194) |
| Profit for the year from continuing operations | 462 | – | 66 | (1) | 40 | 567 |
| Profit for the year from discontinued operations | – | – | – | – | – | – |
| Profit for the year | 462 | – | 66 | (1) | 40 | 567 |
| Minority interest | (37) | – | (5) | – | (2) | (44) |
| Earnings | 425 | – | 61 | (1) | 38 | 523 |
| 2008 | ||||||
|---|---|---|---|---|---|---|
| All figures in £ millions | Statutory income statement | Other net gains and losses | Amortisation of acquired intangibles | Other net finance income/costs | Tax amortisation benefit | Adjusted income statement |
| Operating profit | 676 | – | 86 | – | – | 762 |
| Net finance costs | (91) | – | – | 3 | – | (88) |
| Profit before tax | 585 | – | 86 | 3 | – | 674 |
| Income tax | (172) | (7) | (31) | (1) | 33 | (178) |
| Profit for the year from continuing operations | 413 | (7) | 55 | 2 | 33 | 496 |
| Profit for the year from discontinued operations | (90) | 90 | – | – | – | – |
| Profit for the year | 323 | 83 | 55 | 2 | 33 | 496 |
| Minority interest | (31) | – | (3) | – | (2) | (36) |
| Earnings | 292 | 83 | 52 | 2 | 31 | 460 |
Adjusted operating profit – underlying and constant exchange rate movement
Operating profit movement excluding the impact of acquisitions, disposals and movements in exchange rates.
| All figures in £ millions | 2009 |
|---|---|
| Underlying increase | 13 |
| Portfolio changes | 14 |
| Exchange differences | 69 |
| Total adjusted operating profit increase | 96 |
| Underlying increase | 2% |
| Constant exchange rate increase | 4% |
Total free cash flow per share
Operating cash flow for continuing and discontinued operations before tax and finance charges, divided by the weighted average number of shares in issue.
| All figures in £ millions | 2009 | 2008 |
|---|---|---|
| Adjusted operating profit | 858 | 762 |
| Cash conversion | 106% | 104% |
| Operating cash flow | 913 | 796 |
| Operating tax paid | (103) | (89) |
| Net operating finance costs paid | (87) | (76) |
| Total operating and free cash flow | 723 | 631 |
| Weighted average number of shares in issue (millions) | 799.3 | 797.0 |
| Operating free cash flow per share | 90.5p | 79.2p |
| Total free cash flow per share | 90.5p | 79.2p |
Return on invested capital
| Net invested capital | Gross invested capital | |||
|---|---|---|---|---|
| All figures in £ millions | 2009 | 2008 | 2009 | 2008 |
| Total adjusted operating profit | 858 | 762 | 858 | 762 |
| Intangible amortisation | (103) | (86) | – | – |
| Cash tax paid | (103) | (89) | (103) | (89) |
| Return | 652 | 587 | 755 | 673 |
| Average goodwill and other intangibles | 5,152 | 4,352 | 7,194 | 6,058 |
| Average net operating assets | 1,310 | 1,279 | 1,310 | 1,279 |
| Average invested capital | 6,462 | 5,631 | 8,504 | 7,337 |
| Return on invested capital | 10.1% | 10.4% | 8.9% | 9.2% |
Return on invested capital is calculated using two methods:
Gross basis – total adjusted operating profit less operating cash tax paid expressed as a percentage of average gross invested capital. Gross invested capital includes the original unamortised goodwill and intangibles.
Net basis – total adjusted operating profit less intangible amortisation and operating cash tax paid expressed as a percentage of average net invested capital. Net invested capital includes the carrying value (after amortisation) of goodwill and intangibles.