Financial highlights
Year ended 31 December 2009

In financial terms, Pearson's goal is to achieve sustainable growth on three key financial goals – earnings, cash and return on invested capital – and reliable cash returns to our investors through healthy and growing dividends. In 2009, we reported underlying growth in sales and operating profit, in spite of the exceptionally difficult macroeconomic environment and against record 2008 results. We achieved significant profit growth in education, helping us to grow even though our markets in US school publishing, financial advertising and consumer books were especially challenging.

Business performance and Statutory results

	2009 £m	2008 £m	Headline growth	CER growth	Underlying growth
Business performance
Sales	5,624	4,811	17%	4%	2%
Adjusted operating profit	858	762	13%	4%	2%
Adjusted profit before tax	761	674	13%
Adjusted earnings per share	65.4p	57.7p	13%
Operating cash flow	913	796	15%
Total free cash flow	723	631	15%
Total free cash flow per share	90.5p	79.2p	14%
Return on invested capital	8.9%	9.2%	(0.3)%pts
Net debt	1,092	1,460	25%

Statutory results
Operating profit	755	676	12%
Profit before tax	660	585	13%
Basic earnings per share – continuing	53.2p	47.9p	11%
Cash generated from operations	1,012	894	13%
Dividend per share	35.5p	33.8p	5%

Note Throughout this document (unless otherwise stated), sales and adjusted operating profit growth rates are stated on a constant exchange rate (CER) basis. Where quoted, underlying growth rate exclude both currency movements and portfolio changes. The 'business performance' measures are non-GAAP measures and reconciliations to the equivalent statutory heading under IFRS are included in notes 2, 8 and 31 to the annual report. Adjusted operating profit is stated on a continuing basis.