糖心探花

Glossary of terms

Glossary of terms

Glossary of terms

Helpful financial definitions

A


Adjusted diluted earnings per share:听
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鈥檚 results.

Adjusted earnings:听Profit for the period attributable to owners of the parent amended to exclude the effect of adjusting items.

Adjusted profit from operations:听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:听The Group鈥檚 share of the post-tax results of associates and joint ventures amended for the Group鈥檚 share of adjusting items net of tax.

Adjusting items:听Adjusting items are significant items in the profit from operations, net finance costs, taxation and the Group鈥檚 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鈥檚 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:听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:听The systematic allocation of an asset鈥檚 depreciable amount (acquisition cost less residual value) over its useful economic life. In the case of intangible assets the term 鈥渁mortisation鈥 is generally used rather than 鈥渄epreciation鈥.

Amortisation of trademarks and similar intangibles:听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):听糖心探花 p.l.c. Ordinary Shares that are registered on the NYSE Amex; each ADR represents one Ordinary Share.

Associates:听Associates comprise investments in undertakings, which are not subsidiary undertakings or joint arrangements, where the Group鈥檚 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).

B

Basic earnings per share:听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).

C

Cigarette volumes:听Quantities of cigarettes sold during the reporting period by 糖心探花Group companies, including the volumes of joint operations not already recognised by Group subsidiaries, but excluding the volumes of associates and joint ventures.

Click & Roll:听Product innovation for Lucky Strike using a small capsule in the filter to produce a boost of menthol on demand.

Click On:听Product innovation for Pall Mall using a small capsule in the filter to produce a boost of menthol on demand.

CO2e:听Carbon dioxide equivalent is a measure used to compare the emissions from various greenhouse gases based upon their global warming potential.

Constant rate:听The Management Board, as the chief operating decision maker, reviews current and prior year segmental adjusted profit from operations of subsidiaries and joint operations, and adjusted post tax results of associates and joint ventures, at constant rates of exchange. This allows comparison of the current year results of the Group鈥檚 overseas entities, including intercompany royalties payable in foreign currency to UK entities, had they been translated at the previous year鈥檚 rates of exchange. Other than in exceptional circumstances, which will be fully disclosed, the Group does not adjust for the normal transactional gains and losses in operations that are generated by exchange movements. As an additional measure to indicate the impact of the exchange rate movements on the Group results, the principal measure of adjusted diluted earnings per share is also shown at constant rates of exchange.

Convertibles:听Product innovation for Kent using a small capsule in the filter to produce a boost of menthol on demand.

Corporate Governance Code:听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鈥檚 Annual Report (the 鈥淐orporate Governance Statement鈥), explains how the Principles of the Code have been applied by the Company and confirms the Board鈥檚 assessment that the Company has complied with the Provisions of the Code.

D


Depreciation:听
The systematic allocation of an asset鈥檚 depreciable amount (acquisition cost less residual value) over its useful economic life. In the case of intangible assets the term 鈥渁mortisation鈥 is generally used rather than 鈥渄epreciation鈥.


Diluted earnings per share:听
Profit for the period attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period adjusted for the potential dilutive effect of employee share schemes.


Dividend:听
The amount paid to shareholders in cash or shares from the Company's profits after tax, commonly expressed in pence per share. UK listed companies usually announce a final and an interim dividend during the financial year.


Dividend cover (adjusted):听
Adjusted diluted earnings per share divided by the declared dividend per Ordinary Share.

DSS:听Direct store sales.

E

Earnings:听Profit for the period attributable to ordinary shareholders of the parent entity.

Earnings per share:

  1. Basic:听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).
  2. Diluted:听Profit for the period attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period adjusted for the potential dilutive effect of employee share schemes.
  3. Adjusted diluted:听As for 鈥楨arnings per share 鈥 diluted鈥, but amended to exclude the effect of adjusting items, allowing EPS to be measured on a comparable basis with previous periods. Adjusted diluted earnings per share is shown at both current and constant rates of exchange to indicate the impact of the exchange rate movement on the Group鈥檚 results.
  4. Headline:听The presentation of headline earnings per share, as an alternative measure of earnings per share, is mandated under the JSE Listing Requirements.听 It is calculated in accordance with Circular 2/2013 鈥楬eadline Earnings鈥, as issued by the South African Institute of Chartered Accountants.

EBITDA:听Profit on ordinary activities before interest and tax, adjusted for goodwill impairment, depreciation and amortisation.

Effective tax rate:听The tax charge expressed as a percentage of profit before tax.

Employee Share Ownership Trust (ESOT):听Holds 糖心探花 p.l.c. shares purchased in the market, to provide for share options granted to 糖心探花 employees.

Enterprise value (EV):听Market capitalisation, plus net debt and the market value of the non-controlling interests.

EV / EBITDA:听This ratio compares companies using all the capital employed, including debt. It is a useful means of comparing companies that are domiciled in different countries with different tax and accounting conventions.

Ex-dividend date:听The date from which shares are traded without the right to the next dividend payment.

F

FCTC:听The Framework Convention on Tobacco Control, issued by the World Health Organization (WHO).

Final dividend:听The dividend a company pays after the end of its financial year.

FMCG:听Fast moving consumer goods.

Free cash flow:听An additional non-GAAP measure used by companies and investors as a performance target, generally taken to mean the amount of cash a business generates after accounting for capital expenditure / reinvestment in the business, and provides a measure of how much cash is available for additional reinvestment in the business and for acquisitions, or available for return to shareholders. The Group prepares an alternative cash flow, which includes a measure of 鈥榝ree cash flow鈥, to illustrate the cash flows before dividends, share buy-backs and investing activities and highlight the effect of restructuring costs, tax, and dividends to non-controlling interests, while excluding the distorting effects of borrowings-related cash flows.

G

GAAP:听Generally accepted accounting principles.

Global Drive Brands (GDBs):听From 2014 our five leading international cigarette brands - Dunhill, Kent, Lucky Strike, Pall Mall and Rothmans.

Goodwill:听Goodwill represents the excess of the cost of acquisition of a subsidiary, associate or joint venture over the Group鈥檚 share of the fair value of identifiable net assets acquired. Goodwill arising on acquisitions is capitalised and is considered to have an indefinite life subject to impairment reviews. Any impairment of goodwill is recognised immediately in the income statement and is not subsequently reversed.

Group:听糖心探花 p.l.c. and all its businesses throughout the world.

Gross turnover:听Group turnover before deducting the effects of duty, excise and other taxes. Group revenue is turnover less duty, excise and other taxes.

H

Headline earnings:听Due to the secondary listing of the ordinary shares of 糖心探花 p.l.c. on the main board of the JSE Limited (JSE) in South Africa, the Group is required to present headline earnings per share and diluted headline earnings per share, as alternative measures of earnings per share, calculated in accordance with Circular 2/2013 鈥楬eadline Earnings鈥 issued by the South African Institute of Chartered Accountants.

I

IFRS:听International Financial Reporting Standards as adopted by the European Union, comprising:

  1. International Financial Reporting Standards issued by the International Accounting Standards Board (IASB), and interpretations issued by IFRS Interpretations Committee (IFRIC);
  2. International Accounting Standards originally issued by the International Accounting Standards Committee (IASC), which were subsequently adopted and amended by the IASB, and interpretations originally issued by the IASC鈥檚 Standing Interpretations Committee (SIC).

The Group has prepared its annual consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.

Impairment loss:听The amount by which the carrying amount of an asset exceeds its recoverable amount.

Interest cover:听EBITDA excluding the effect of adjusting items divided by net finance costs.

Interim dividend:听A dividend paid part way through a company's financial year.

J

Joint arrangements:听Comprise contractual arrangements where two or more parties have joint control and where decisions regarding the relevant activities of the entity require unanimous consent.

Joint operations:听Comprise jointly-controlled arrangements where the parties to the arrangement have rights to the underlying assets and obligations for the underlying liabilities relating to the arrangement. The Group accounts for its share of the assets, liabilities, income and expenses of any such arrangement.

Joint ventures:听entities comprise jointly-controlled arrangements where the parties to the arrangement have rights to the net assets of the arrangement. They are accounted for using the equity method (like associates).

N

Net debt:听The Group defines net debt as borrowings including related derivatives, less cash and cash equivalents and current available-for-sale investments.

Non-controlling interests:听The share of profit after tax and accumulated capital and reserves attributable to shareholders of subsidiaries not wholly directly owned by the Company or indirectly by its subsidiaries.

Non-GAAP measures:听In the reporting of financial information, the Group uses certain measures that are not required under IFRS, the generally accepted accounting principles (GAAP) under which the Group reports.听 The Group believes that these additional measures, which are used internally, are useful to users of the financial information in helping them understand the underlying business performance. The principal non-GAAP measures which the Group uses are adjusted profit from operations and adjusted diluted earnings per share, which are reconciled to profit from operations and diluted earnings per share.

Number of institutions holding shares:听The number of all reporting institutions that are holding shares of this stock.

O

Operating margin:听Group adjusted profit from operations (operating profit excluding adjusting items), divided by revenue, multiplied by 100 per cent.

Organic growth:听Organic growth is the growth after adjusting for mergers and acquisitions and discontinued activities.听 Adjustments are made to current and prior period numbers based on the current Group position.

P

Profit from operations:听Profit earned from operating activities i.e. before net finance costs, the share of post-tax results of associates and joint ventures, and tax. Adjusted profit from operations excludes the adjusting items.

Proposed dividend:听Dividend proposed by the Board of Directors but not yet approved by the shareholders at the Annual General Meeting.

R

Related parties:听The Group has a number of transactions and relationships with related parties, as defined in IAS 24听Related Party Disclosures听, all of which are undertaken in the normal course of business, typically with associates.

Reloc:听Resealable cigarette pack exclusive to Dunhill.

Restructuring costs:听Costs incurred as a result of initiatives to improve the effectiveness and the efficiency of the Group as a globally integrated enterprise.听 These initiatives include a review of the Group鈥檚 manufacturing operations, supply chain, overheads and indirect costs, organisational structure and systems and software used.

Revenue:听Revenue principally comprises sales of cigarettes and other tobacco products to external customers. Revenue excludes duty, excise and other taxes and is after deducting rebates, returns and other similar discounts. Revenue is recognised when the significant risks and rewards of ownership are transferred to a third party.

S

Segments:听The four geographic regions are the reportable segments for the Group as they form the focus of the Group鈥檚 internal reporting systems and are the basis used by the chief operating decision maker, identified as the Management Board, for assessing performance and allocating resources. The Management Board reviews current and prior period segmental revenue, adjusted profit from operations of subsidiaries and adjusted post-tax results of associates and joint ventures at constant rates of exchange.

Share option scheme:听A right granted to employees to purchase shares in a company at a fixed price for a set period of time.

Subsidiary undertaking:听A subsidiary is an entity controlled by the Group. The group controls an entity when the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. This is often evidenced by directly or indirectly holding more than 50 per cent of the voting capital.

T

Taxation:听Taxation is income tax chargeable on the profits for the period, together with deferred taxation. The current income tax charge is calculated on the basis of tax laws enacted or substantially enacted at the balance sheet date in the countries where the Group鈥檚 subsidiaries, associates and joint ventures operate and generate taxable income. Deferred taxation is provided in full using the liability method for temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amount used for taxation purposes.

Total shareholder return:听Dividends combined with share price appreciation relative to the FTSE 100 Index and also to the Fast Moving Consumer Goods (FMCG) peer group. The FMCG comparator group is reviewed annually to ensure that it remains both relevant and representative. TSR is measured according to the return index calculated by Datastream, on the basis of all companies鈥 dividends being reinvested in their shares. The return is the percentage increase in each company鈥檚 index over a three year period.

Total tobacco volume:听Total tobacco volume is measured with cigarette sticks as the basis, with usage levels applied to other tobacco products to calculate the equivalent number of cigarette units.

Trade loading:听Where retailers and wholesalers order additional products in advance, usually ahead of an anticipated price increase.

Treasury shares:听Previously issued shares of the Company, reacquired by buying them on the market through the share buyback programme or through employee share option schemes.

U

Underlying tax rate:听The adjusted tax charge expressed as a percentage of adjusted profit before tax excluding the results of associates.

V

Volumes:听Quantities of cigarettes sold during the reporting period by 糖心探花Group companies, including the volumes of joint operations not already recognised by Group subsidiaries, but excluding the volumes of associates and joint ventures. Total tobacco volume is measured with cigarette sticks as the basis, with usage levels applied to other tobacco products to calculate the equivalent number of cigarette units.

W

Weighted average cost of capital:听The cost of capital for the Group, i.e. the return that the providers of the Group鈥檚 capital (both borrowings and equity) require, weighted by the proportions of borrowings and equity and the different rates of return for each.

Weighted average number of shares in issue:听The average number of shares in issue during the period, weighted for the period of time they were in issue.