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The Group provides alternative performance measures, including underlying operating profit and underlying profit before tax, to enable users to better understand the performance and earnings trends of the Group. The Group's alternative performance measures are not defined by IFRS and are therefore considered to be non-GAAP measures. The measures may not be comparable to similar measures used by other companies and they are not intended to be a substitute for, or superior to, measures defined under IFRS.

In order to facilitate understanding of the APMs used by the Group, and their relationship to reported IFRS measures, definitions and numerical reconciliations are set out below.

Alternative performance
measure ('APM')
Underlying operating profit (before JVs and associates)Operating profit before non-underlying items and the results of JVs and associates.Profit measure reflecting underlying trading performance of wholly owned subsidiaries.
Underlying profit before taxProfit before tax before non-underlying items.Profit measure widely used by investors and analysts.
Underlying basic earnings per share ('EPS')Underlying profit after tax divided by the weighted average number of shares in issue during the year.Underlying EPS reflects the Group's operational performance per ordinary share outstanding.
Net funds/(debt) (pre-IFRS 16)Balance drawn down on the Group's revolving credit facility, with unamortised debt arrangement costs added back, less cash and cash equivalents (including bank overdrafts) before IFRS-16 lease liabilities.Measure of the Group's cash indebtedness before IFRS-16 lease liabilities, which are excluded from the definition of net funds/(debt) in the Group's borrowing facilities. This measure supports the assessment of available liquidity and cash flow generation in the reporting period.
Operating cash conversionCash generated from operations after net capital expenditure (before interest and tax) expressed as a percentage of underlying operating profit (before JVs and associates) (see note 26).Measure of how successful we are in converting profit to cash through management of working capital and capital expenditure. Widely used by investors and analysts.
Return on capital employedUnderlying operating profit divided by the average of opening and closing capital employed.
Capital employed is defined as shareholders' equity excluding retirement benefit obligations (net of tax), acquired intangible assets and net funds (see note 22).
Measures the return generated on the capital we have invested in the business and reflects our ability to add shareholder value over the long term. We have an asset-intensive business model and ROCE reflects how productively we deploy those capital resources.
Economic value generated and distributedEconomic value generated reflects Group revenue.
Economic value distributed is operating costs, employee wages and benefits, payments to providers of capital, payments to government by country, and community investments.
A basic indication of how the Group has created wealth for its stakeholders and an important ESG measure.

Reconciliations to IFRS measures

Underlying operating profit (before JVs and associates)Note2023
Underlying operating profit (before JVs and associates)33,06726,881
Non-underlying operating items5(4,811)(5,424)
Share of results of JVs and associates151,8981,346
Operating profit30,15422,803
Underlying profit before taxNote2023
Underlying profit before tax32,47627,098
Non-underlying items5(5,369)(6,098)
Profit before tax27,10721,000
Underlying taxable profit2023
Underlying profit before tax32,47627,098
Share of results of JVs and associates(1,898)(1,346)
Underlying taxable profit30,57825,752
Non-underlying items(5,369)(6,098)
Taxable profit25,20919,654
Underlying basic earnings per shareNote2023
Underlying net profit attributable to equity holders of the parent Company1026,23822,303
Non-underlying items after tax5(4,672)(6,702)
Net profit attributable to equity holders of the parent Company21,56615,601
Weighted average number of ordinary shares10309,533,696308,834,123
Underlying basic earnings per share8.48p7.22p
Basic earnings per share6.97p5.05p
Net funds/(debt) (pre-IFRS 16)Note2023
Cash and cash equivalents11,338(3,974)
Unamortised debt arrangement costs321402
Net funds/(debt) (pre-IFRS 16)262,709(18,422)
IFRS 16 lease liabilities21(13,396)(11,640)
Net debt (post-IFRS 16)(10,687)(30,062)
Economic value generated and distributedNote2023
Economic value generated491,753403,563
Operating costs4463,497382,106
Non-underlying operating items5(4,811)(5,424)
Underlying operating costs458,686376,682
Payments to providers of capital73,1801,879
Non-underlying finance expense5(558)(674)
Underlying payments to providers of capital2,6221,205
Payments to government6,2384,795
Economic value distributed467,546382,682