Sales movement for continuing operations excluding the impact of acquisitions and disposals and movements in exchange rates.
| All figures in £ millions | 2010 |
|---|---|
| Underlying increase | 275 |
| Portfolio changes | 120 |
| Exchange differences | 128 |
| Total sales increase | 523 |
| Underlying increase | 5% |
| Constant exchange rate increase | 8% |
Reconciliation of the consolidated income statement to the adjusted numbers presented as non-GAAP measures in the financial statements.
| All figures in £ millions | 2010 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Statutory income statement | Discontinued operations | Other net gains and losses | Acquisition costs | Amortisation of acquired intangibles | Other net finance income/ costs |
Tax amortisation benefit | Tax loss recognition | Adjusted income statement | |
| Operating profit | 743 | 81 | (2) | 11 | 105 | – | – | – | 938 |
| Net finance costs | (73) | – | – | – | – | (12) | – | – | (85) |
| Profit before tax | 670 | 81 | (2) | 11 | 105 | (12) | – | – | 853 |
| Income tax | (146) | (31) | (1) | (4) | (35) | 3 | 36 | (37) | (215) |
| Profit for the year from continuing operations | 524 | 50 | (3) | 7 | 70 | (9) | 36 | (37) | 638 |
| Profit for the year from discontinued operations | 776 | (50) | (731) | – | 5 | – | – | – | – |
| Profit for the year | 1,300 | – | (734) | 7 | 75 | (9) | 36 | (37) | 638 |
| Non-controlling interest | (3) | – | (12) | – | (2) | – | – | – | (17) |
| Earnings | 1,297 | – | (746) | 7 | 73 | (9) | 36 | (37) | 621 |
| All figures in £ millions | 2009 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Statutory income statement | Discontinued operations | Other net gains and losses | Acquisition costs | Amortisation of acquired intangibles | Other net finance income/ costs |
Tax amortisation benefit | Tax loss recognition | Adjusted income statement | |
| Operating profit | 619 | 148 | – | – | 91 | – | – | – | 858 |
| Net finance costs | (96) | 1 | – | – | – | (2) | – | – | (97) |
| Profit before tax | 523 | 149 | – | – | 91 | (2) | – | – | 761 |
| Income tax | (146) | (52) | – | – | (33) | 1 | 36 | – | (194) |
| Profit for the year from continuing operations | 377 | 97 | – | – | 58 | (1) | 36 | – | 567 |
| Profit for the year from discontinued operations | 85 | (97) | – | – | 8 | – | 4 | – | – |
| Profit for the year | 462 | – | – | – | 66 | (1) | 40 | – | 567 |
| Non-controlling interest | (37) | – | – | – | (5) | – | (2) | – | (44) |
| Earnings | 425 | – | – | – | 61 | (1) | 38 | – | 523 |
Operating profit movement excluding the impact of acquisitions, disposals and movements in exchange rates.
| All figures in £ millions | 2010 |
|---|---|
| Underlying increase | 103 |
| Portfolio changes | 5 |
| Exchange differences | 39 |
| Total adjusted operating profit increase | 147 |
| Underlying increase | 14% |
| Constant exchange rate increase | 15% |
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 | 2010 | 2009 |
|---|---|---|
| Adjusted operating profit | 938 | 858 |
| Cash conversion | 113% | 106% |
| Operating cash flow | 1,057 | 913 |
| Operating tax paid | (85) | (103) |
| Net operating finance costs paid | (68) | (87) |
| Total operating free cash flow | 904 | 723 |
| Non operating tax paid | – | – |
| Total free cash flow | 904 | 723 |
| Weighted average number of shares in issue (millions) | 801.2 | 799.3 |
| Operating free cash flow per share | 112.8p | 90.5p |
| Total free cash flow per share | 112.8p | 90.5p |
| All figures in £ millions | Net invested capital | Gross invested capital | ||
|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | |
| Total adjusted operating profit | 938 | 858 | 938 | 858 |
| Amortisation of acquired intangibles | (113) | (103) | – | – |
| Operating tax paid | (85) | (103) | (85) | (103) |
| Return | 740 | 652 | 853 | 755 |
| Average goodwill and other intangibles | 5,362 | 5,152 | 7,341 | 7,194 |
| Average net operating assets | 974 | 1,310 | 974 | 1,310 |
| Average invested capital | 6,336 | 6,462 | 8,315 | 8,504 |
| Return on invested capital | 11.7% | 10.1% | 10.3% | 8.9% |
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.