Key financial data

US$ million (unless otherwise stated) 2007 2006(1) 2005(1) 2004(1)
Group revenue including associates 30,559 29,404 24,872 22,610
Less: Share of associates’ revenue (5,089) (4,413) (4,740) (5,429)
Group revenue 25,470 24,991 20,132 17,181
Operating profit including associates before special items and remeasurements 9,590 8,888 5,549 3,832
Special items and remeasurements (excluding financing special items and remeasurements) (227) 24 16 556
Net finance costs (including remeasurements), tax and minority interests of associates (434) (398) (315) (391)
Total profit from operations and associates 8,929 8,514 5,250 3,997
Net finance costs (including special items and remeasurements) (108) (71) (220) (385)
Profit before tax 8,821 8,443 5,030 3,612
Income tax expense (2,693) (2,518) (1,208) (765)
Profit for the financial year – continuing operations 6,128 5,925 3,822 2,847
Profit for the financial year – discontinued operations 2,044 997 111 1,094
Profit for the financial year – total Group 8,172 6,922 3,933 3,941
Minority interests (868) (736) (412) (440)
Profit attributable to equity shareholders of the Company 7,304 6,186 3,521 3,501
Underlying earnings(2)– continuing operations 5,477 5,019 3,335 2,178
Underlying earnings(2)– discontinued operations 284 452 401 506
Underlying earnings(2) – total Group 5,761 5,471 3,736 2,684
Earnings per share ($) – continuing operations 4.04 3.51 2.35 1.84
Earnings per share ($) – discontinued operations 1.54 0.70 0.08 0.60
Earnings per share ($) – total Group 5.58 4.21 2.43 2.44
Underlying earnings per share ($) – continuing operations 4.18 3.42 2.30 1.52
Underlying earnings per share ($) – discontinued operations 0.22 0.31 0.28 0.35
Underlying earnings per share ($) – total Group 4.40 3.73 2.58 1.87
Ordinary dividend per share (US cents) 124.0 108.0 90.0 70.0
Special dividend per share (US cents) 67.0 33.0
Weighted average number of shares outstanding (million) 1,309 1,468 1,447 1,434
EBITDA(3) – continuing operations 11,171 10,431 7,172 5,359
EBITDA(3) – discontinued operations 961 1,766 1,787 1,672
EBITDA(3) – total Group 12,132 12,197 8,959 7,031
EBITDA interest cover(4) – total Group 42.0 45.5 20.0 18.5
Operating margin (before special items and remeasurements) – total Group 28.4% 25.4% 18.5% 14.7%
Ordinary dividend cover (based on underlying earnings per share) – total Group 3.5 3.5 2.9 2.7
Balance sheet
Intangible and tangible assets 25,090 25,632 33,368 35,816
Other non-current assets and investments 8,952 7,819 5,375 5,375
Working capital 2,125 3,246 3,719 3,715
Other net current liabilities (877) (1,177) (1,492) (611)
Other non-current liabilities and obligations (6,261) (5,790) (8,399) (8,339)
Cash and cash equivalents and borrowings(5) (5,170) (3,244) (4,993) (8,243)
Net assets classified as held for sale 471 641
Net assets 24,330 27,127 27,578 27,713
Minority interests (1,869) (2,856) (3,957) (4,588)
Equity attributable to the equity shareholders of the Company 22,461 24,271 23,621 23,125
Total capital(6) 29,569 30,451 32,571 35,956
Cash inflows from operations – continuing operations 9,375 9,012 5,963 3,857
Cash inflows from operations – discontinued operations 470 1,045 1,302 1,434
Cash inflows from operations – total Group 9,845 10,057 7,265 5,291
Dividends received from associates and financial asset investments – continuing operations 311 251 468 380
Dividends received from associates and financial asset investments – discontinued operations 52 37 2 16
Dividends received from associates and financial asset investments – total Group 363 288 470 396
Return on capital employed(7) – total Group 37.8% 32.4% 19.2% 14.6%
EBITDA/average total capital(6) – total Group 40.4% 38.7% 26.0% 21.2%
Net debt to total capital(8) 20.0% 12.9% 17.0% 25.4%
US$ million (unless otherwise stated) 2003(9)(10)
Group turnover including share of joint ventures and associates 24,909
Less: Share of joint ventures’ turnover (1,060)
Share of associates’ turnover (5,212)
Group turnover – subsidiaries 18,637
Operating profit before exceptional items 2,892
Operating exceptional items (286)
Total operating profit 2,606
Non-operating exceptional items 386
Net interest expense (319)
Profit on ordinary activities before tax 2,673
Tax on profit on ordinary activities (749)
Tax on exceptional items 13
Equity minority interests (345)
Profit for the financial year 1,592
Underlying earnings(2) 1,694
Earnings per share ($) 1.13
Underlying earnings per share ($) 1.20
Dividend per share (US cents) 54.0
Basic number of shares outstanding (million) 1,415
EBITDA(3) 4,785
EBITDA interest cover(4) 9.3
Operating margin (before exceptional items) 11.6%
Dividend cover (based on underlying earnings) 2.2
Balance sheet
Intangible and tangible fixed assets 26,646
Investments 7,206
Working capital 1,903
Provisions for liabilities and charges (3,954)
Cash and cash equivalents and borrowings (8,633)
Equity minority interests (3,396)
Total shareholders’ funds (equity) 19,772
Total capital(6) 31,801
Net cash inflow from operating activities 3,184
Dividends received from joint ventures and associates 426
Return on capital employed(7) 10.7%
EBITDA/average total capital(6) 17.3%
Net debt to total capital(8) 32.0%

Years 2004, 2005, 2006 and 2007 are prepared under IFRS. 2003 is prepared under UK GAAP.

(1) Comparatives have been adjusted to reclassify amounts relating to discontinued operations where applicable.

(2) Underlying earnings is net profit attributable to equity shareholder s, adjusted for the effect of special items and remeasurements and any related tax and minority interests.

(3) EBITDA is operating profit before special items, operating remeasurements (2003: exceptional items), depreciation and amortisation in subsidiaries and joint ventures and share of EBITDA of associates.

(4) EBITDA interest cover is EBITDA divided by net finance costs, excluding other net financial income, exchange gains and losses on monetary assets and liabilities, amortisation of discounts on provisions, special items and financial remeasurements (2003: exceptional items), but including share of associates’ net interest expense.

(5) This differs to the Group’s measure of net debt as it excludes the net debt of Net assets classified as held for sale (2007: ($69) million; 2006: ($80) million), and excludes the impact of derivative instruments that provide an economic hedge of assets and liabilities in net debt (2007: $388 million; 2006: $193 million). For more detail see note 31 Consolidated cash flow analysis.

(6) Total capital is net assets excluding net debt (excluding the impact of derivative instruments).

(7) Return on capital employed is calculated as total operating profit before impairments for the year divided by the average of total capital less other investments and adjusted for impairments.

(8) Net debt to total capital is calculated as net debt (excluding the impact of derivative instruments) divided by total capital less investments in associates.

(9) 2003 has been restated to reflect the adoption of UITF abstract 38 Accounting for ESOP trusts.

(10) The 2003 UK GAAP numbers include all business segments. The results have not been adjusted to reclassify amounts relating to Gold and Paper and Packaging.