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19. Non-GAAP measures of performance

Reconciliation of profit before interest and taxation to headline PBIT for the six months ended 30 June 2010

Reconciliation of profit before interest and taxation to headline PBIT for the six months ended 30 June 2010

 
 
 
Six months
ended
30 June
2010
£m
Six months
ended
30 June
2009
£m

Year ended
31 December
2009
£m
Profit before interest and taxation 362.5 218.5 818.7
Amortisation and impairment of acquired intangible assets 87.0 88.1 172.6
Goodwill impairment 10.0 40.0 44.3
Gains on disposal of investments (6.8) (8.4) (31.1)
Investment write-downs 2.2 4.3 11.1
Share of exceptional losses/(gains) of associates 0.4 (0.3) 1.6
Headline PBIT/Headline operating profit 455.3 342.2 1,017.2
Finance income 39.3 107.5 150.4
Finance costs (138.4) (197.5) (355.4)
  (99.1) (90.0) (205.0)
Interest cover on Headline PBIT 4.6 times 3.8 times 5.0 times

Calculation of Headline EBITDA

Calculation of Headline EBITDA

 
 
 
Six months
ended
30 June
2010
£m
Six months
ended
30 June
2009
£m

Year ended
31 December
2009
£m
Headline PBIT (as above) 455.3 342.2 1,017.2
Depreciation of property, plant and equipment 93.0 97.3 195.3
Amortisation of other intangible assets 12.5 16.2 30.5
Headline EBITDA 560.8 455.7 1,243.0

Reconciliation of profit before taxation to headline PBT and headline earnings for the six months ended 30 June 2010

Reconciliation of profit before taxation to headline PBT and headline earnings for the six months ended 30 June 2010

 
 
 
Six months
ended
30 June
2010
£m
Six months
ended
30 June
2009
£m

Year ended
31 December
2009
£m
Profit before taxation 243.9 179.3 662.6
Amortisation and impairment of acquired intangible assets 87.0 88.1 172.6
Goodwill impairment 10.0 40.0 44.3
Gains on disposal of investments (6.8) (8.4) (31.1)
Investments write-downs
2.2 4.3 11.1
Share of exceptional losses/(gains) of associates 0.4 (0.3) 1.6
Revaluation of financial instruments 19.5 (50.8) (48.9)
Headline PBT 356.2 252.2 812.2
Taxation (excluding net deferred tax credit in relation to the
amortisation of acquired intangible assets and other goodwill items)

(85.2)

(62.5)

(193.0)
Non-controlling interests (31.8) (29.9) (69.2)
Headline earnings 239.2 159.8 550.0
Ordinary dividends1 75.1 63.7 189.8
Dividend cover on headline earnings 3.2 times 2.5 times 2.9 times
Notes
1
For the six months ended 30 June 2010, ordinary dividends represent an estimate of the 2010 first interim dividend expected to be paid to share owners in November 2010, based on the number of shares in issue at 30 June 2010. The corresponding figure for the six months ended 30 June 2009 represents the 2009 first interim dividend paid in November 2009.

Headline PBIT margins before and after share of results of associates

Headline PBIT margins before and after share of results of associates

 
 
 

 
 
 
Margin (%)
Six months
ended
30 June
2010
£m

 
 
 
Margin (%)
Six months
ended
30 June
2009
£m
Revenue   4,440.9   4,288.7
Headline PBIT 10.3 455.3 8.0 342.2
Share of results of associates (excluding exceptional losses/gains)   2.7   19.5
Headline PBIT excluding share of results of associates 9.7 432.6 7.5 322.7

Reconciliation of free cash flow for the six months ended 30 June 2010

Reconciliation of free cash flow for the six months ended 30 June 2010

 
 
 
Six months
ended
30 June
2010
£m
Six months
ended
30 June
2009
£m

Year ended
31 December
2009
£m
Cash generated by operations 17.4 (14.5) 1,137.6
Plus:
Interest received 27.1 96.2 99.6
Investment income 1.0 0.4 1.4
Dividends received from associates 24.6 22.1 45.5
Share option proceeds 9.3 0.1 4.1
Movements in working capital
and provisions
555.7 481.9 102.1
Proceeds on disposal of property,
plant and equipment
1.5 2.1 9.2
Less:      
Interest and similar charges paid (134.1) (200.7) (248.7)
Purchases of property, plant and equipment (79.9) (113.0) (222.9)
Purchases of other intangible assets (including capitalised
computer software)

(9.9)

(16.1)

(30.4)
Corporation and overseas tax paid (95.7) (94.9) (216.6)
Dividends paid to non–controlling interest in subsidiary
undertakings

(33.3)

(31.3)

(63.0)
Free cash flow 283.7 132.3 617.9

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