Annual report and accounts 2008

Other information
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	2008
Underlying increase	130
Portfolio changes	199
Exchange differences	320
Total sales increase	649
Underlying increase	3%
Constant exchange rate increase	8%

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	2008
	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

All figures in £ millions	2007
	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	574	15	45	—	—	634
Net finance costs	(106)	—	—	21	—	(85)
Profit before tax	468	15	45	21	—	549
Income tax	(131)	(14)	(19)	(6)	25	(145)
Profit for the year from continuing operations	337	1	26	15	25	404
Profit for the year from discontinued operations	(27)	27	—	—	—	—
Profit for the year	310	28	26	15	25	404
Minority interest	(26)	—	(4)	—	(2)	(32)
Earnings	284	28	22	15	23	372

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	2008
Underlying increase	32
Portfolio changes	35
Exchange differences	76
Total adjusted operating profit increase	143
Underlying increase	5%
Constant exchange rate increase	11%

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	2008	2007
Adjusted operating profit	762	634
Cash conversion	104%	108%
Operating cash flow	796	684
Operating tax paid	(89)	(61)
Net operating finance costs paid	(76)	(90)
Operating free cash flow	631	533
Non-operating tax paid	—	(26)
Special pension contribution	—	(100)
Total free cash flow	631	407
Weighted average number of shares in issue (millions)	797.0	796.8
Operating free cash flow per share	79.2p	66.9p
Total free cash flow per share	79.2p	51.1p

Return on invested capital (re-stated)

Total adjusted operating profit less cash tax expressed as a percentage of average gross invested capital.

All figures in £ millions	2008	2007
Total adjusted operating profit	762	634
Cash tax paid	(89)	(61)
Return	673	573
Average gross goodwill and other intangibles	6,058	5,352
Average net operating assets	1,279	1,071
Average invested capital	7,337	6,423
Return on invested capital	9.2%	8.9%

The return on invested capital (ROIC) calculation has been re-stated for all years to reflect the updated methodology used internally by management. The return is calculated as adjusted operating profit less actual operating cash tax paid in each year (rather than a notional 15% cash tax deduction) and the invested capital is the average monthly amount throughout the year rather than the year end balance.