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Notes 6-10

For the half year ended 30 June 2008

9. Earnings per share

Basic EPS

The calculation of basic Reported and Headline EPS is as follows:

Six
months
ended
30 June
2008
Six
months
ended
30 June
2007
+/(-)% Constant
Currency
+/(-)%
Year
ended
31
December
2007
Reported earnings1(£m) 208.2 181.9     465.9
Headline earnings (£m)
(note 19)
258.8 225.8     563.8
Average shares used in
Basic EPS calculation (m)
1,144.0 1,189.5     1,176.9
Reported EPS 18.2p 15.3p 19.0 4.5 39.6p
Headline EPS 22.6p 19.0p 18.9 7.4 47.9p

1 Reported earnings is equivalent to profit for the period attributable to equity holders of the parent.

Diluted EPS

The calculation of diluted Reported and Headline EPS is set out below:

Six
months
ended
30 June
2008
Six
months
ended
30 June
2007
+/(-)% Constant
Currency
+/(-)%
Year
ended
31
December
2007
Diluted Reported
earnings (£m)
208.7 182.4     466.8
Diluted Headline
earnings (£m)
259.3 226.3     564.7
Shares used in diluted
EPS calculation (m)
1,174.4 1,242.8     1,227.1
Diluted Reported EPS 17.8p 14.7p 21.1 6.4 38.0p
Diluted Headline EPS 22.1p 18.2p 21.4 9.3 46.0p

Diluted EPS has been calculated based on the Reported and Headline Earnings amounts above. For the six months ended 30 June 2008 and the six months ended 30 June 2007 the $150 million Grey convertible bond was dilutive and earnings were consequently increased by £0.5 million.

A reconciliation between the shares used in calculating Basic and Diluted EPS is as follows:

Six months
ended
30 June
2008
m
Six months
ended
30 June
2007
m
Year ended
31 December
2007
m
Average shares used in
Basic EPS calculation
1,144.0 1,189.5 1,176.9
Dilutive share options outstanding 7.0 20.4 16.6
Other potentially issuable shares 14.5 24.0 24.7
$150 million Grey convertible bond 8.9 8.9 8.9
Shares used in Diluted
EPS calculation
1,174.4 1,242.8 1,227.1

At 30 June 2008 there were 1,174,251,830 ordinary shares in issue.