LONDON, UK--(Marketwire - August 1, 2007) -
Embargo: 07.00 Wednesday 1 August 2007
PRUDENTIAL PLC 2007 INTERIM RESULTS
- Total EEV operating profit from continuing operations GBP1,326
million, up 39%
- Total IFRS operating profit from continuing operations
GBP601 million, up 27%
- New business APE GBP1,334 million, up 12%; PVNBP GBP9.7
billion, up 4%
- New business profit GBP534 million, up 12%
- Asset management profit GBP180 million, up 45%
- EEV shareholders' funds GBP13.4 billion, up 13% (end 2006
GBP11.9 billion*)
- Interim dividend 5.7 pence per share, up 5% (2006: 5.42
pence per share)
All figures compared to 2006 constant exchange rates unless stated, *at reported
exchange rates
Commenting, Mark Tucker, Group Chief Executive said:
"The growth in operating profit of 39 per cent in the first half of the year
demonstrates the clear and continued momentum that we have within the Group. It
builds on the very strong operating performance in both 2005 and 2006 when we
grew operating profit by 36 per cent and 28 per cent respectively.
"Our strategy is focused on the growing global market for retirement savings and
income and our advantaged regional platforms and global capabilities place the
Group in an excellent and immensely strong position to capture a
disproportionate share of this opportunity.
"In Asia, growth across the region continues to be strong, with new business up
48 per cent to GBP619 million APE, and new business profit up 31 per cent to
GBP282 million. These strong first half results, and the continuing development
of our operations in the region, mean that we are very confident that we will
achieve our target of at least doubling 2005 EEV new business profits by 2009.
"In the US, we have one of the fastest growing variable annuity franchises in
the market - VA sales grew by 31 per cent in the first half to GBP2.2 billion,
continuing to gain profitable market share.
"In the UK, retail sales grew by 10 per cent in the first half of the year,
while our focus on value has kept margins on new business in the UK at 30 per
cent which remain high compared to the overall UK market. The Internal Rate of
Return (IRR) was 15 per cent against our target of 14 per cent.
"Our asset management businesses saw very strong growth in operating profit,
with M&G and Asia fund management up 40 per cent and 65 per cent respectively.
Retail net sales at M&G surpassed last year's record half-year net flows and in
Asia net flows remained strong at GBP1.7 billion, with a number of successful
fund launches in Taiwan and Korea, as well as ongoing strong net sales in India
and Japan.
"The Group is extremely well placed to continue to deliver real long-term
sustainable profit growth for shareholders."
Group Chief Executive's Review
Introduction
The Group has today announced a strong set of results.
Prudential's performance in the first half of the year demonstrates the real
shareholder value that we are delivering through consistent implementation of
our retirement-focused strategy. This strategy is generating both continued
excellent results and creating substantial longer term opportunities from our
advantaged regional platforms and global capabilities.
Capturing the Retirement Opportunity
Developments in the global retirement market represent one of the most
significant and important global trends in retail financial services. In the UK
and US alone, it is estimated that over the next five years, as much as GBP7
trillion of assets will be available for investment into the retirement savings
and retirement income market sectors. In Asia, the retirement opportunity is
also expanding rapidly driven by rising incomes, increasing longevity, and a
growing realisation among individuals of the need to save for retirement and to
protect their income.
Prudential's strategy focuses on capturing the ever-increasing revenue and value
from these material opportunities.
Prudential is well positioned - Capabilities and Geographic Coverage
While many financial institutions are moving to capture this opportunity,
Prudential has an outstanding combination of assets and capabilities to succeed:
- Sophisticated risk management
- Integrated solutions to address retirement needs
- Privileged access to retirement advisers
- Trusted brands which are strongly associated with retirement
- Financial strength and reliability
- Geographic reach
Moreover, Prudential has the additional advantage of being able to draw on
expertise and experience across international frontiers to advance product
innovation, distribution and the quality of customer service. These initiatives
transfer learning and value from one business to another, creating competitive
advantage above and beyond what each could individually achieve.
Group Performance
The operating performance of the Group was again very strong in the first half
of 2007. Group operating profit before tax from continuing operations, on the
European Embedded Value basis (EEV), was up 39 per cent, to GBP1,326 million
building on the momentum established in 2005 and 2006. On the statutory IFRS
basis, operating profit before tax on continuing operations was up 27 per cent
to GBP601 million.
The Group had a positive cashflow from operations in the period to 30 June 2007.
The benefit of a significant increase in the uptake of the scrip dividend helped
to achieve this. Our expectation remains that operations will provide a positive
cash flow in the 2008 full year.
The Group's cash balances also benefited by GBP527 million from the sale of Egg.
In addition, the already robust regulatory capital surplus of the Group was
improved by around GBP300 million from the sale of this business.
Regional Performance
As outlined earlier, Prudential's operations in Asia, the US and the UK are all
well-positioned to capitalise on the retirement opportunity, and each has
specific strategies in place to build on and strengthen our established market
positions.
Performance in all of our regional markets over the first half has been strong,
indicating that our approach to the market is delivering material financial
benefits.
Asia
Prudential's geographic spread in Asia, the strength and scale of our
distribution, and the recognition of and trust in the Prudential brand in the
region, continue to be key differentiating factors for the Group.
Agent numbers have reached 350,000 and at the same time, almost 30 per cent of
new business is being derived from non-agency sources.
In addition to capitalising on and further building these strengths, we are
increasing the focus on the fast emerging retirement opportunity by developing
and providing integrated protection and savings solutions to meet consumers'
increasingly sophisticated needs.
Work is progressing well on our initiatives to deepen our Health business and we
are putting in place the infrastructure to facilitate greater cross-selling and
up-selling to our established customer base of some 8.5 million in the region.
Growth across the region continues to be strong, with new business up 48 per
cent to GBP619 million APE in the half year. Compound annual growth in APE over
the last five years is 29 per cent. New business profit was up 31 per cent to
GBP282 million.
A significant contributor to this growth was the "What's my number?" retirement
campaign which has already seen great success in Korea and Hong Kong, and was
rolled out to Taiwan at the end of April. As a result, new business in Taiwan in
the second quarter was GBP106 million APE and half year new business was up 103
per cent. We will continue to identify other opportunities in retirement across
the region.
We are also making good progress in two additional areas; firstly we are
developing a regionwide infrastructure to support our approach to develop
systematic cross-selling and up-selling to our 8.5 million customers, with plans
already in place in three markets and with the first pilots due to begin later
this year. Secondly, on health products we saw a 62 per cent increase in the
first half. We launched a new product in Singapore in the second quarter and we
have recently launched a new product in India.
These strong first half results, and the continuing development of our
operations in the region, mean that we are very confident that we will achieve
our target of at least doubling 2005 EEV new business profits by 2009. The
outlook beyond 2009 also remains very positive.
US
In the US, our long-term strategy has been to position Jackson to meet the
retirement needs of the baby boomer generation pre and post retirement. We
recognised early on the central role of advice as the key source of success in
this market and Jackson has developed a very effective and hard to replicate
business model, with particular success in the independent broker channel - the
key channel for advice.
The Jackson brand is trusted to provide integrated retirement planning solutions
to financial professionals and their clients, including variable annuity
products that provide the most flexibility and customisation in the industry.
We are continuing to develop our variable annuity offering, adding a number of
new guaranteed minimum withdrawal benefits and a new guaranteed minimum
accumulation benefit. The total number of benefit combinations available is now
in excess of 2,100.
At Curian, our separately managed account platform, we also recently launched a
new proposal system which cuts the time required to open a separately managed
account by a factor of three. This is just one example of how we continue to
leverage Jackson's superior technological capabilities to enhance our efficiency
and effectiveness.
We have also continued to add to Jackson's distribution strength, increasing the
number of external wholesalers by 30 per cent. Over the last two years,
Jackson's wholesaling force has been one of the fastest growing in the market
whilst still growing productivity per producer and sales per territory. This
increase in numbers of wholesalers will allow us to take an even more granular
approach to our segmentation of the market.
Today, Jackson is already one of the fastest growing variable annuity franchises
in the market. Variable annuity sales grew by 31 per cent in the first half to
GBP2.2 billion, continuing to gain profitable market share. Our market share of
variable annuities reached 5.1 per cent at the end of the first quarter,
compared to 4.2 per cent in the first quarter of 2006, and share in the main
target Independent Broker Dealer channel was 11.7 per cent, up from 10.4 per
cent in the first quarter of 2006.
Overall margins on new business in the US remained strong at 41 per cent (2006:
41 per cent) with an IRR of 18 per cent.
UK
In the UK, our manufacturing capabilities in the retirement space, combined with
the Prudential brand - which is strongest among pre and post retirement age
groups - provides an excellent platform from which to develop the business.
In line with our stated plans we are exiting those product areas that are
structurally uneconomic and we are developing a new range of trail-based
commission products centred on the multi-asset investment capabilities. Our new
unit-linked product, for instance, will be launched later this month.
To further strengthen our distribution, we have entered into an agreement with
Barclays to be the preferred provider of conventional annuity products to retail
customers of Barclays in the UK. This is a five-year agreement which will take
effect from later in 2007.
UK retail sales grew by 10 per cent in the first half of the year. Momentum is
particularly strong in individual annuities, up 23 per cent, a market segment in
which we are a clear leader with 23 per cent market share in 2006. This is a
high growth, high return sector of the market where Prudential benefits from
significant and recurring internal flows of maturing pensions as well as flows
from both new and existing partnerships. All of this, combined with
sophisticated risk management and competitive pricing, is enabling us to deliver
good returns to shareholders.
In the bulk annuity market we reached an agreement in principle to acquire
Equitable Life's portfolio of in-force with-profits annuities, now estimated at
around GBP1.7 billion. This transaction remains on track to complete in the
fourth quarter and on its own represents almost 20 per cent growth on the bulk
annuities written by our UK business in the whole of 2006. We will continue to
exercise pricing discipline in this market, and to pursue specific opportunities
which play to our distinctive capabilities.
Margins on new business in the UK of 30 per cent (2006: 29 per cent) remain high
compared to the overall UK market and the Internal Rate of Return (IRR) was 15
per cent against our target of 14 per cent. This represents an attractive return
in both absolute and relative terms.
We remain confident of achieving our already-announced cost savings target of
GBP195 million by 2010. By the end of 2007 we will have taken all of the actions
to secure GBP115 million of the announced savings, and we are making good
progress in determining the approach we will take to deliver the remaining GBP80
million, whether that is through offshoring, outsourcing or a combination of the
two. We are on track to confirm our final decision by the middle of the fourth
quarter this year.
Prudential's main with-profit fund in the UK was the top performing life fund in
2006 in terms of gross investment return ranking first, in the WM Company's
survey of with-profit funds, over 1, 3, 5 and 10 years -an outstanding
performance. Investment performance has remained strong in the first half of
2007.
Our work on the Inherited Estate is progressing well and as previously
disclosed, if a decision is taken to proceed, a formal appointment of the
Policyholder Advocate could be expected to take place later this year. We will
only proceed if there are clear benefits to both policyholders and shareholders.
Asset Management
Our asset management businesses continue to both add value to our insurance
operations as well as growing their external funds under management.
Key to this is our ability to develop retirement savings and retirement income
products based on sophisticated asset allocation strategies which match
customers' risk profiles and strong investment performance.
This is clearly evidenced in the UK, where our strength in the with-profits
business - both bonds and annuities - has been driven by our multi-asset
allocation capabilities which can deliver the kind of cautious growth that
customers want. In the US, these capabilities enable us to deliver our fully
unbundled variable annuity proposition.
These capabilities also position us well in the emerging area of lifecycle
finance where we can create products that adapt to consumers changing
circumstances, risk appetites, and needs over different stages of the retirement
cycle. These products need to be underpinned by adaptable and creative asset
management.
Across the Group's asset management businesses net inflows were GBP5 billion and
at similar levels to those achieved in the first half of 2006. Retail net sales
at M&G surpassed last year's record half-year net flows and in Asia net flows
remained strong at GBP1.7 billion, with a number of successful fund launches in
Taiwan and Korea, plus ongoing strong net sales in India and Japan. External
funds under management increased to GBP63 billion.
This is contributing to very strong growth in operating profit from these
businesses, with M&G and Asia fund management up 40 per cent and 65 per cent
respectively.
Capital Efficiency
Prudential benefits from greater capital efficiency and an increased risk
appetite by actively managing its product and geographic diversification.
Prudential's economic capital modelling indicates that the capital requirements
of the businesses on a stand-alone basis would be GBP1.3 billion higher than for
the Group as a whole, as at 31 December 2006.
While the dialogue with both regulators and rating agencies continues to
develop, for example over the draft Solvency II Directive, it is already clear
that in future there will be material and enduring opportunities for greater
regulatory capital efficiency within broader-based groups.
Outlook
In summary:
- Our strategy is focused on the growing global market for
retirement savings and retirement income
- Our advantaged regional platforms and our global
capabilities place the Group in a strong position to capture
a disproportionate share of the retirement opportunity
around the world
- Delivery of that strategy is generating continuing excellent
short-term operating performance both in the regions and at
the Group level, which in turn is creating superior
shareholder value
- Our diversified geographic footprint across three regions
provides a strong and operationally efficient base for
future growth
- Prudential is extremely well placed to deliver real
long-term sustainable profit growth for its shareholders
ENDS
Enquiries:
Media Investors/Analysts
Jon Bunn 020 7548 3559 James Matthews 020 7548 3561
Carole Butcher 020 7548 3719 Marina Novis 020 7548 3511
Notes to Editor:
1. The results in this announcement are prepared on two bases, namely
International Financial Reporting Standards ('IFRS') and the European Embedded
Value ('EEV') basis. The IFRS basis results form the basis of the Group's
financial statements.
The EEV basis results have been prepared in accordance with the principles
issued by the CFO Forum of European Insurance Companies in May 2004. Where
appropriate the EEV basis results include the effects of IFRS.
References to 'operating profit' in this announcement are to operating profit
based on longer-term investment returns. Consistent with previous reporting
practice the Group analyses its EEV basis results, and provides supplementary
analysis of IFRS profit before tax attributable to shareholders, so as to
distinguish operating profit based on longer-term investment returns from other
constituent elements of total profit. On both the EEV and IFRS bases operating
profit based on longer-term investment returns excludes goodwill impairment
charges, short-term fluctuations in investment returns and the shareholders'
share of actuarial and other gains and losses on defined benefit pension
schemes. Under the EEV basis, where additional profit and loss effects arise,
operating profits based on longer-term investment returns also excludes the mark
to market value movement in core borrowings, the effect of changes in economic
assumptions, and changes in the time value of the cost of options and guarantees
arising from changes in economic factors.
'PVNBP' refers to the Present Value of New Business Premiums. PVNBPs are
calculated as equalling new single premiums plus the present value of expected
premiums of new regular premium business. In determining the present value,
allowance is made for lapses and other assumptions applied in determining the
EEV new business profit.
Period on period percentage increases are stated on a constant exchange rate
basis.
2. Annual premium equivalent (APE) sales comprise regular premium sales plus
one-tenth of single premium insurance sales.
3.The internal rate of return (IRR) is equivalent to the discount rate at which
the present value of the post-tax cash flows expected to be earned over the life
time of the business written in shareholder-backed life funds is equal to the
total invested capital to support the writing of the business. The capital
included in the calculation of the IRR is the initial capital in excess of the
premiums received required to pay acquisition costs and set up the statutory
capital requirement. The time value of options and guarantees are included in
the calculation.
4.There will be a conference call today for wire services at 7.30am (BST) hosted
by Mark Tucker, Group Chief Executive and Philip Broadley, Group Finance
Director. Dial in telephone number: +44 (0)20 8609 0793. Passcode: 155439#.
5. A presentation to analysts will take place at 9.30am (BST) at Governor's
House, Laurence Pountney Hill, London, EC4R 0HH. An audio cast of the
presentation and the presentation slides will be available on the Group's
website,
www.prudential.co.uk
6. There will be a conference call for investors and analysts at 2.30pm (BST)
hosted by Mark Tucker, Group Chief Executive and Philip Broadley, Group Finance
Director. Please call from the UK +44 (0)20 8609 0793 and from the US +1 866 793
4279. Passcode 487687#. A recording of this call will be available for replay
for
one week by dialling: +44 (0)20 8609 0289 from the UK or +1 866 676 5865 from
the US. The conference passcode is 160473#.
7. High resolution photographs are available to the media free of charge at
www.newscast.co.uk +44 (0) 208 886 5895.
8. An interview with Mark Tucker, Group Chief Executive, (in video/audio/text)
will be available on
www.cantos.com and
www.prudential.co.uk from 7.00am on 1
August 2007.
9. Financial Calendar 2007:
Ex-dividend date 15 August 2007
Record Date 17 August 2007
Payment of interim dividend 24 September 2007
Third Quarter 2007 New Business Figures 18 October 2007
Full Year 2007 New Business Figures 29 January 2008
Full Year 2007 results 14 March 2008
10. In addition to the financial statements provided with this press release,
additional financial schedules are available on the Group's website at
www.prudential.co.uk
11. Total number of Prudential plc shares in issue as at 30 June 2007 was
2,460,159,970.
About Prudential
Prudential plc is a company incorporated and with its principal place of
business in England, and its affiliated companies constitute one of the world's
leading financial services groups. It provides insurance and financial services
directly and through its subsidiaries and affiliates throughout the world. It
has been in existence for over 150 years and has GBP256 billion in assets under
management as at 30 June 2007. Prudential plc is not affiliated in any manner
with Prudential Financial, Inc, a company whose principal place of business is
in the United States of America.
Forward-Looking Statements
This statement may contain certain "forward-looking statements" with respect to
certain of Prudential's plans and its current goals and expectations relating to
its future financial condition, performance, results, strategy and objectives.
Statements containing the words "believes", "intends", "expects", "plans",
"seeks" and "anticipates", and words of similar meaning, are forward-looking. By
their nature, all forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances which are beyond
Prudential's control including among other things, UK domestic and global
economic and business conditions, market related risks such as fluctuations in
interest rates and exchange rates, and the performance of financial markets
generally; the policies and actions of regulatory authorities, the impact of
competition, inflation, and deflation; experience in particular with regard to
mortality and morbidity trends, lapse rates and policy renewal rates; the
timing, impact and other uncertainties of future acquisitions or combinations
within relevant industries; and the impact of changes in capital, solvency or
accounting standards, and tax and other legislation and regulations in the
jurisdictions in which Prudential and its affiliates operate. This may for
example result in changes to assumptions used for determining results of
operations or re-estimations of reserves for future policy benefits. As a
result, Prudential's actual future financial condition, performance and results
may differ materially from the plans, goals, and expectations set forth in
Prudential's forward-looking statements. Prudential undertakes no obligation to
update the forward-looking statements contained in this statement or any other
forward-looking statements it may make.
PRUDENTIAL PLC 2007 UNAUDITED INTERIM RESULTS
RESULTS SUMMARY
European Embedded Value (EEV) Basis Results*
Half Year Half Year Full Year
2007 2006 2006
GBPm GBPm GBPm
UK Insurance Operations 462 336 686
M&G 140 100 204
UK Operations 602 436 890
US Operations 351 350 718
Asian Operations 520 374 864
Other Income and Expenditure (147) (141) (298)
UK restructuring costs 0 (12) (41)
Operating profit from continuing 1,326 1,007 2,133
operations based on longer-term
investment returns*
Short-term fluctuations in investment 241 73 738
returns
Mark to market value movements on core 113 168 85
borrowings
Shareholders' share of actuarial gains 125 246 207
and losses on defined benefit pension
schemes
Effect of changes in economic 275 (20) 59
assumptions and time value of cost of
options and guarantees
Profit from continuing operations 2,080 1,474 3,222
before tax
Operating earnings per share from 39.4p 29.3p 62.1p
continuing operations after related tax
and minority interests*
Basic earnings per share 72.8p 43.8p 91.7p
Shareholders' equity, excluding GBP13.4bn GBP10.9bn GBP11.9bn
minority interests
International Financial Reporting Standards (IFRS) Basis Results*
Half Year Half Year Full Year
2007 2006 2006
Statutory IFRS basis results
Profit after tax attributable GBP715m GBP449m GBP874m
to equity holders of the
Company
Basic earnings per share 29.3p 18.7p 36.2p
Shareholders' equity, excluding GBP5.9bn GBP5.0bn GBP5.5bn
minority interests
Half Year Half Year Full Year
2007 2006 2006
Supplementary IFRS basis
information
Operating profit from GBP601m GBP498m GBP1,050m
continuing operations based on
longer-term investment returns*
Operating earnings per share 16.3p 14.0p 30.9p
from continuing operations
after related tax and minority
interests*
Half Year Half Year Full Year
2007 2006 2006
Dividends per share declared 11.72p 11.02p 16.44p
and paid in reporting period
Dividends per share relating to 5.70p 5.42p 17.14p
reporting period
Funds under management GBP256bn GBP238bn GBP251bn
* Basis of preparation
Results bases
The EEV basis results have been prepared in accordance with the European
Embedded Value Principles issued by the CFO Forum of European Insurance
Companies in May 2004. The basis of preparation of the statutory IFRS basis
results and supplementary IFRS basis information is consistent with that applied
for the 2006 full year results and financial statements.
Operating profit based on longer-term investment returns
Consistent with previous reporting practice, the Group analyses its EEV basis
results and provides supplementary analysis of IFRS profit before tax
attributable to shareholders, so as to distinguish operating profit based on
longer-term investment returns from other constituent elements of total profit.
On both the EEV and IFRS bases, operating earnings per share are calculated
using operating profits from continuing operations based on longer-term
investment returns, after tax and minority interests. These profits exclude
short-term fluctuations in investment returns and the shareholders' share of
actuarial gains and losses on defined benefit pension schemes. Under the EEV
basis, where additional profit and loss effects arise, operating profit based on
longer-term investment returns also excludes the mark to market value movements
on core borrowings and the effect of changes in economic assumptions and changes
in the time value of cost of options and guarantees arising from changes in
economic factors. After adjusting for related tax and minority interests, the
amounts for these items are included in the calculation of basic earnings per
share.
For half year 2007, the EEV basis operating profit from continuing operations
based on longer-term investment returns before tax of GBP1,326m includes a
credit of GBP92m that arises from including the benefits, grossed up for
notional tax, of altered corporate tax rates for the UK, Singapore and China.
Further details are explained in note 7 to the EEV basis supplementary
information.
Discontinued operations
The results for continuing operations shown above and throughout this
announcement exclude those in respect of discontinued banking operations. On 1
May 2007, the Company sold Egg Banking plc. Accordingly, the presentation of the
comparative results for half year and full year 2006 has been adjusted from
those previously published.
REVIEW OF OPERATING AND FINANCIAL RESULTS
RESULTS HIGHLIGHTS
Half Half
year year
CER
2007 2006 Change
GBPm GBPm %
Annual premium equivalent (APE) sales (1) 1,334 1,196 12%
Present value of new business premiums 9,681 9,300 4%
(PVNBP) (1)
Net investment flows 5,047 5,198 (3%)
External funds under management 63,222 50,376 26%
New business profit (NBP) (1) 534 476 12%
NBP Margin (% APE) (1) 40% 40%
NBP Margin (% PVNBP) (1) 5.5% 5.1%
EEV basis operating profit from long-term 1,293 979 32%
business
from continuing operations (2) (3)
Total EEV basis operating profit from 1,326 952 39%
continuing
operations (3)(5)
Total IFRS operating profit from 601 473 27%
continuing
operations(3)(5)
EEV basis shareholders' funds 13,412 10,726 25%
IFRS shareholders' funds 5,905 4,915 20%
Holding company cash flow 34 (94) 136%
Half
year
RER (4)
2006 Change
GBPm %
Annual premium equivalent (APE) sales (1) 1,255 6%
Present value of new business premiums (PVNBP) 9,761 (1%)
(1)
Net investment flows 5,304 (5%)
External funds under management 51,070 24%
New business profit (NBP) (1) 504 6%
NBP Margin (% APE) (1) 40%
NBP Margin (% PVNBP) (1) 5.2%
EEV basis operating profit from long-term 1,034 25%
business
from continuing operations (2) (3)
Total EEV basis operating profit from 1,007 32%
continuing
operations (3)(5)
Total IFRS operating profit from continuing 498 21%
operations(3)(5)
EEV basis shareholders' funds 10,932 23%
IFRS shareholders' funds 5,049 17%
Holding company cash flow (94) 136%
(1) The details shown include the effect of the bulk annuity transfer from the
Scottish Amicable Insurance Fund (SAIF) to Prudential Retirement Income Limited
in the first half of 2006, a shareholder owned subsidiary of the Group. SAIF is
a closed ring-fenced sub-fund of the PAC long-term fund established by a court
approved scheme of arrangement in September 1997, whose results are solely for
the benefit of SAIF policyholders.
(2) Long-term business profits after deducting Asia development expenses and
before restructuring costs.
(3) Based on longer term investment returns from continuing operations, as
explained in the basis of preparation section shown below.
(4) Reported exchange rate (RER).
(5) The restructuring costs and operating loss for Egg for 2006 and the period
of ownership in 2007, together with the profit on disposal, are included within
discontinued operations
In the Operating and Financial Review (OFR), year-on-year comparisons of
financial performance are on a constant exchange rate (CER) basis, unless
otherwise stated.
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