> Glossary of terms

Net asset value per share
> equity attributable to owners of Imperial divided by total ordinary shares in issue net of shares repurchased (the deferred ordinary shares only participate to the extent of their par value of 0,04 cents).
Net debt (segment report)
> the aggregate of interest-bearing borrowings, non-redeemable, non-participating preference shares less cash resources.
Operating margin (%)  
> operating profit divided by revenue.
Pre-tax profits  
> calculated as profit before tax, impairment of goodwill, profit or loss on sale of investment in subsidiaries, associates and joint ventures and other businesses, and impairment losses on assets of disposal groups.
Return on invested capital (%)  
> this is the return divided by the invested capital.
> the return is calculated by reducing the operating profit by a blended tax rate, which is an average of the actual tax rates applicable in the various jurisdictions in which we operate, increased by the income from associates.
> the invested capital is a 12 month average of shareholders equity plus non-controlling interests (ignoring the put option debit) plus preference shares plus net interest bearing debt (long term and short term less long term loans receivable less non financial services cash resources).
> this is different to the prior year which has been restated to the new basis.
Weighted average cost of capital (WACC) (%)  
> calculated by multiplying the cost of each capital component by its proportional weight, therefore: WACC = (after tax cost of debt % multiplied by average debt weighting) + (cost of equity multiplied by average equity weighting).