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Notes 1-5

For the year ended 31 December 2007

2. Segment information

The Group is a leading worldwide communications services organisation offering national and multinational clients a comprehensive range of communications services. For management purposes, the Group is currently organised into four operating segments – Advertising and Media Investment Management; Information, Insight & Consultancy; Public Relations & Public Affairs; and Branding & Identity, Healthcare and Specialist Communications. These disciplines are the basis on which the Group reports its primary information. Operating segments are aggregated where they have similar economic characteristics, provide similar products and services and serve similar clients. The Group's operations are located in North America; the UK; Continental Europe; and Asia Pacific, Latin America, Africa & Middle East and the Group's performance has historically been linked with the economic performance of these regions. These geographic divisions are the basis on which the Group reports its secondary information.

Operating sectors

Segment information about these businesses is presented below:

  Revenue1 Operating
profit
Share of
result of
associates
Profit
before
interest and
taxation
Finance
income
Finance
costs
Profit
before
taxation
Taxation Profit for
the year
  £m £m £m £m £m £m £m £m £m
2007
Advertising and Media
Investment Management
2,871.3 384.4 28.1 412.5          
Information, Insight & Consultancy 905.4 99.2 3.9 103.1          
Public Relations & Public Affairs 641.4 101.7 2.1 103.8          
Branding & Identity, Healthcare
and Specialist Communications
1,767.8 219.4 7.3 226.7          
  6,185.9 804.7 41.4 846.1 139.4 (266.1) 719.4 (204.3) 515.1
 
2006
Advertising and Media
Investment Management
2,806.9 365.2 21.9 387.1          
Information, Insight & Consultancy 892.9 89.0 1.9 90.9          
Public Relations & Public Affairs 595.7 83.5 3.2 86.7          
Branding & Identity, Healthcare
and Specialist Communications
1,612.3 203.9 14.1 218.0          
  5,907.8 741.6 41.1 782.7 111.0 (211.7) 682.0 (199.4) 482.6
 
2005
Advertising and Media
Investment Management
2,606.4 334.0 16.1 350.1          
Information, Insight & Consultancy 810.4 69.4 6.9 76.3          
Public Relations & Public Affairs 534.4 72.1 2.1 74.2          
Branding & Identity, Healthcare
and Specialist Communications
1,422.5 177.3 8.8 186.1          
  5,373.7 652.8 33.9 686.7 87.6 (182.3) 592.0 (194.0) 398.0

Note

1 Intersegment sales have not been separately disclosed as they are not material.

  Headline
PBIT1
Headline
PBIT
margin %
Headline
PBIT1
Headline
PBIT
margin %
Headline
PBIT1
Headline
PBIT
margin %
  2007
£m
2007 2006
£m
2006 2005
£m
2005
Advertising and Media Investment Management 466.9 16.3 443.7 15.8 402.7 15.5
Information, Insight & Consultancy 104.3 11.5 98.7 11.1 83.4 10.3
Public Relations & Public Affairs 106.5 16.6 89.5 15.0 75.3 14.1
Branding & Identity, Healthcare and Specialist Communications 250.3 14.2 227.1 14.1 193.4 13.6
  928.0 15.0 859.0 14.5 754.8 14.0

Note

1 Headline PBIT is defined in note 31.

Other information Share-based
payments
Goodwill
additions
Acquired
intangibles
additions
Capital
additions1
Depreciation
and
amortisation
Goodwill
impairment &
write-downs
Interst in
associates
  £m £m £m £m £m £m £m
2007
Advertising and Media Investment Management 35.0 56.8 3.9 96.5 100.0 33.2 328.9
Information, Insight & Consultancy 7.4 39.3 2.3 19.9 18.1 90.8
Public Relations & Public Affairs 4.3 35.9 10.7 14.1 0.6 59.0
Branding & Identity, Healthcare and Specialist Communications 15.7 471.7 79.5 45.2 52.5 12.0 61.4
  62.4 603.7 85.7 172.3 184.7 45.8 540.1
 
2006
Advertising and Media Investment Management 43.7 60.9 4.5 105.8 114.3 28.7 257.1
Information, Insight & Consultancy 7.7 12.9 0.4 19.5 17.2 5.6 83.1
Public Relations & Public Affairs 4.7 55.5 6.0 15.1 13.8 0.9 18.7
Branding & Identity, Healthcare and Specialist Communications 14.8 78.3 9.4 44.1 40.6 9.1 52.5
  70.9 207.6 20.3 184.5 185.9 44.3 411.4
 
2005
Advertising and Media Investment Management 40.0 856.4 250.6 96.8 85.5 35.6 294.0
Information, Insight & Consultancy 8.6 20.7 2.4 17.6 17.8 7.1 96.8
Public Relations & Public Affairs 4.3 45.7 15.4 20.1 12.1 0.4 18.2
Branding & Identity, Healthcare and Specialist Communications 15.7 205.3 86.1 36.8 32.0 4.0 100.9
  68.6 1,128.1 354.5 171.3 147.4 47.1 509.9

Note

1 Capital additions include purchases of property, plant and equipment and other intangible assets (including capitalised computer software).

  Assets   Liabilities
Balance sheet Segment assets
Unallocated
corporate
assets1
Consolidated
total
assets
  Segment
liabilitie
Unallocated
corporate
liabilities1
Consolidated
total
liabilities
    £m £m   £m £m £m
2007
Advertising and Media Investment Management 8,963.4       (7,238.5)    
Information, Insight & Consultancy 1,008.9       (395.5)    
Public Relations & Public Affairs 1,307.2       (296.0)    
Branding & Identity, Healthcare and Specialist Communications 3,839.1       (1,031.1)    
  15,118.6 2,133.4 17,252.0   (8,961.1) (4,196.1) (13,157.2)
 
2006
Advertising and Media Investment Management 7,861.4       (5,912.7)    
Information, Insight & Consultancy 919.1       (373.9)    
Public Relations & Public Affairs 1,209.9       (246.3)    
Branding & Identity, Healthcare and Specialist Communications 2,906.5       (875.2)    
  12,896.9 1,799.0 14,695.9   (7,408.1) (3,369.4) (10,777.5)

Note

1 Included in unallocated corporate assets and liabilities are corporate income tax, deferred tax and net interest-bearing debt. The debt has not been allocated as it is held centrally and specifically allocating it to individual segments is not considered to be a fair representation of the net assets of those segments.

Contributions by geographical area were as follows:

  2007
£m
2006
£m
2005
£m
Revenue1
North America 2,266.7 2,291.1 2,106.9
UK 890.3 856.3 808.1
Continental Europe 1,657.4 1,532.9 1,410.3
Asia Pacific, Latin America,
Africa & Middle East
1,371.5 1,227.5 1,048.4
  6,185.9 5,907.8 5,373.7

 

  Margin   Margin   Margin  
Headline PBIT2
North America 17.3% 391.5 17.0% 389.0 16.6% 350.1
UK 12.0% 107.1 11.4% 97.9 10.5% 84.6
Continental Europe 13.5% 223.0 12.7% 194.3 12.5% 176.1
Asia Pacific, Latin America,
Africa & Middle East
15.0% 206.4 14.5% 177.8 13.7% 144.0
  15.0% 928.0 14.5% 859.0 14.0% 754.8


Segment Assets

 
North America   5,494.4   4,536.0   5,116.5
UK   1,691.4   1,693.8   1,357.3
Continental Europe   4,748.5   3,946.0   4,091.2
Asia Pacific, Latin America,
Africa & Middle East
  3,184.3   2,721.1   2,557.6
    15,118.6   12,896.9   13,122.6

 

Capital additions3

 
North America   74.8   90.1   80.5
UK   28.2   29.4   28.7
Continental Europe   31.2   28.7   31.1
Asia Pacific, Latin America,
Africa & Middle East
  38.1   36.3   31.0
    172.3   184.5   171.3

 

Notes

1Intersegment sales have not been separately disclosed as they are not material.
2Headline PBIT is defined in note31.
3Capital additions include purchases of property, plant and equipment and other intangible assets (including capitalised computer software).