We have a wide range of measures and indicators by which the Board assesses performance compared to the Group’s strategy.
To ensure management’s focus is aligned with the interests of our shareholders, the Key Performance Indicators form the basis upon which the levels of incentives for the global organisation are decided.
1. Revenue growth
Revenue for 2007 grew by 3 per cent, compared to the long term target of growing revenue, on average over the medium to long term, by 3 to 3.5 per cent per annum.
This figure is calculated as the revenue of the Group after the deduction of any duties, excise and other taxes, as published in the Group Income Statement.
2. Global Drive Brand volume
A key strength of the Group is its diversified Global Drive Brands (GDBs) portfolio. The growth of the four GDBs – Dunhill, Kent, Lucky Strike and Pall Mall – is therefore a key driver of the Group strategy. In 2007, GDB overall volumes grew by 10 per cent to 161 billion, compared to 17 per cent growth in 2006. Our target is to achieve high single-figure growth.
GDB volumes are calculated as the total volumes of the four brands sold by our subsidiaries. More information about the GDBs and their individual performances, is provided under Growth.
3. Share of global volume amongst key players
The share of the Group subsidiaries amongst key players of global volumes, excluding China, grew by 0.2 per cent to 20.5 per cent. When the volumes of associate companies are included, the share grew by 0.1 per cent to 27.4 per cent. The target is to continue our growth of the share of global volume as compared to other global players.
Share of global volume is calculated as the volumes sold by all international players, namely Altria, Japan Tobacco, Imperial Group, Gallaher and Altadis. The information used in this calculation is based on publicly available information and internal company analysis.