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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 2005
Underlying increase 325
Portfolio changes 29
Exchange differences 46
Total sales increase 400
Underlying increase 9%
Constant exchange rate increase 10%
Adjusted income statement
Reconciliation of the Consolidated Income Statement to the adjusted numbers presented as non-GAAP measures in the financial statements.
All figures in £ millions 2005
Income Statement Re-analyse Discontinued operations Other gains and losses Amortisation of acquired intangibles Other net finance costs Adjusted Income Statement
Gross profit 2,074 27 - - - 2,101
Operating expenses (1,592) (30) - 11 - (1,611)
Other net gains and losses 40 306 (346) - - -
Share of results of joint ventures
and associates		 14 - - - 2 16
Operating profit 536 303 (346) 11 2 506
Net finance costs (70) - - - (14) (84)
Profit before tax 466 303 (346) 11 (12) 422
Income tax (124) (1) (2) (4) 3 (128)
Profit for the year from
continuing operations		 342 302 (348) 7 (9) 294
Profit for the year from
discontinued operations		 302 (302) - - - -
Profit for the year 644 - (348) 7 (9) 294
Minority interest (20) - - (2) - (22)
Earnings 624 - (348) 5 (9) 272
 
All figures in £ millions 2004
Income Statement Re-analyse Discontinued operations Other gains and losses Amortisation of acquired intangibles Other net finance costs Adjusted Income Statement
Gross profit 1,907 129 - - - 2,036
Operating expenses (1,520) (105) - 5 - (1,620)
Other net gains and losses 9 - (9) - - -
Share of results of joint ventures
and associates		 8 2 - - - 10
Operating profit 404 26 (9) 5 - 426
Net finance costs (79) 3 - - - (76)
Profit before tax 325 29 (9) 5 - 350
Income tax (63) (7) (36) (2) - (108)
Profit for the year from
continuing operations		 262 22 (45) 3 - 242
Profit for the year from
discontinued operations		 22 (22) - - - -
Profit for the year 284 - (45) 3 - 242
Minority interest (22) - - (1) - (23)
Earnings 262 - (45) 2 - 219
 
All figures in £ millions 2003
Income Statement Re-analyse Discontinued operations Other gains and losses Amortisation of acquired intangibles Other net finance costs Adjusted Income Statement
Gross profit 2,004 116 - - - 2,120
Operating expenses (1,594) (87) - 4 - (1,677)
Other net gains and losses (6) 12 (6) - - -
Share of results of joint ventures
and associates		 2 2 - - - 4
Operating profit 406 43 (6) 4 - 447
Net finance costs (93) 3 - - - (90)
Profit before tax 313 46 (6) 4 - 357
Income tax (61) (23) (31) (1) - (116)
Profit for the year from
continuing operations		 252 23 (37) 3 - 241
Profit for the year from
discontinued operations		 23 (23) - - - -
Profit for the year 275 - (37) 3 - 241
Minority interest (23) - 2 (1) - (22)
Earnings 252 - (35) 2 - 219
Adjusted operating profit - underlying and constant exchange rate movement
Operating profit movement excluding the impact of acquisitions and disposals and movements in exchange rates.
All figures in £ millions 2005
Continuing Discontinued Total
Underlying increase 88 - 88
Portfolio changes 9 (29) (20)
Exchange differences 12 - 12
Adjusted operating profit increase 109 (29) 80
Underlying increase 22% - 22%
Constant exchange rate increase 24% - 16%
Free cash flow per share
Operating cash flow for continuing and discontinued operations less tax, interest and integration costs paid, divided by the weighted average number of shares in issue.
All figures in £ millions 2003 2004 2005
Adjusted operating profit 447 426 506
Cash conversion 71% 98% 113%
Operating cash flow 318 418 570
Tax paid on operating profits (34) (55) (65)
Net finance costs (76) (85) (65)
Operating free cash flow 208 278 440
Non operating finance changes - - (7)
Non operating tax (paid)/received (10) 10 -
Integration costs (8) (4) (2)
Total free cash flow 190 284 431
Weighted average number of shares in issue (millions) 794.4 795.6 797.9
Operating free cash flow per share 26.2p 34.9p 55.1p
Total free cash flow per share 23.9p 35.7p 54.0p
Return on invested capital*
Adjusted operating profit less cash tax expressed as a percentage of gross invested capital.
All figures in £ millions 2003 2004 2005
Adjusted operating profit 447 426 506
Cash tax (15%) (67) (64) (76)
Return 380 362 430
Gross goodwill 5,295 5,150 5,663
Net operating assets 1,020 728 792
Invested capital 6,315 5,878 6,455
Return on invested capital 6.0% 6.2% 6.7%

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