Adjusted diluted earnings per share: Profit for the period attributable to ordinary shareholders, but amended to exclude the effect of adjusting items, divided by the weighted average number of shares in issue during the period adjusted for the potential dilutive effect of employee share schemes. Adjusted diluted earnings per share is also shown at constant rates of exchange as an additional measure to indicate the impact of the exchange rate movement on the Group’s results.
Adjusted earnings: Profit for the period attributable to owners of the parent amended to exclude the effect of adjusting items.
Adjusted profit from operations: Profit from operations after excluding adjusting items, such as restructuring and integration costs, amortisation of trademarks, etc from the profit from operations.
Adjusted share of post-tax results of associates and joint ventures: The Group’s share of the post-tax results of associates and joint ventures amended for the Group’s share of adjusting items net of tax.
Adjusting items: Adjusting items are significant items in the profit from operations, net finance costs, taxation and the Group’s share of the post-tax results of associates and joint ventures which individually or, if of a similar type, in aggregate, are relevant to an understanding of the Group’s underlying financial performance. While the disclosure of adjusting items is not required by IFRS, these items are separately disclosed either as memorandum information on the face of the income statement and in the segmental analysis, or in the notes to the accounts as appropriate. The adjusting items are used to calculate the non-GAAP measures of adjusted profit from operations, adjusted share of post-tax results of associates and joint ventures and adjusted diluted earnings per share.
Alternative cash flow: The IFRS cash flow statement includes all transactions affecting cash and cash equivalents, including financing; the alternative cash flow statement is presented to illustrate the cash flows before transactions relating to borrowings.
Amortisation: The systematic allocation of an asset’s depreciable amount (acquisition cost less residual value) over its useful economic life. In the case of intangible assets the term “amortisation” is generally used rather than “depreciation”.
Amortisation of trademarks and similar intangibles: The acquisitions of Protabaco, Bentoel, Tekel, ST and C N Creative Limited resulted in the capitalisation of trademarks and similar intangibles which are amortised over their expected useful lives, which do not exceed 20 years. The amortisation charge is included in depreciation, amortisation and impairment costs in the profit from operations.
American Depositary Receipt (ADR): British American Tobacco p.l.c. Ordinary Shares that are registered on the NYSE Amex; each ADR represents two Ordinary Shares.
Associates: Associates comprise investments in undertakings, which are not subsidiary undertakings or joint arrangements, where the Group’s interest in the equity capital is long term and over whose operating and financial policies the Group exercises a significant influence. They are accounted for using the equity method (a method of accounting whereby the Group recognises its share of the net assets and profit after tax of the investment).
Basic earnings per share: Profit for the period attributable to ordinary shareholders divided by the weighted average number of ordinary shares in issue during the period (excluding treasury shares).
CO2e: Carbon dioxide equivalent is a measure used to compare the emissions from various greenhouse gases based upon their global warming potential.
Constant rate: The Management Board, as the chief operating decision maker, reviews current and prior period adjusted segmental income statement information of subsidiaries and associates and joint ventures at constant rates of exchange which provides an approximate guide to performance in the current period had they been translated at the prior year’s rate of exchange. The constant rate comparison provided for reporting segment information is based on a retranslation, at prior year exchange rates, of the current period results of the Group’s overseas entities but other than in exceptional circumstances, does not adjust for the normal transactional gains and losses in operations which are generated by exchange movements. As an additional measure to indicate the impact of the exchange rate movement on the Group results, the principal measure of adjusted diluted earnings per share is also shown at constant rates of exchange.
Corporate Governance Code: The principal governance rules applying to UK companies listed on the London Stock Exchange are contained in the Combined Code on Corporate Governance adopted by the Financial Reporting Council. The Corporate Governance Statement in the Company’s Annual Report (the “Corporate Governance Statement”), explains how the Principles of the Code have been applied by the Company and confirms the Board’s assessment that the Company has complied with the Provisions of the Code.
Click & Roll: Product innovation for Lucky Strike using a small capsule in the filter to produce a boost of menthol on demand.
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