Adjusted diluted earnings per share: 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 earnings: Profit for the period attributable to owners of the parent amended to exclude the effect of adjusting items.
Adjusted profit from operations: 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: The Group’s share of the post-tax results of associates and joint-ventures amended for the Group’s share of adjusting items net of tax.
Adjusting items: Significant items in the profit from operations, net interest or taxation which individually or, if of a similar type, in aggregate, are relevant to an understanding of the Group’s underlying financial performance. These items are separately disclosed either as memorandum information on the face of the income statement and in the segmental analyses, or in the notes as appropriate. The Group believes that these items are useful to the users of the Group’s financial statements in helping them understand the underlying business performance and are used to derive the Group’s principal non-GAAP measure which is adjusted diluted earnings per share.
Alternative cash flow: 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 of trademarks: The acquisitions of Protabaco, Bentoel, Tekel and ST resulted in the capitalisation of trademarks 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): British American Tobacco p.l.c. Ordinary Shares that are registered on the NYSE MKT; each ADR represents two Ordinary Shares.
Associates: Entities, which are not subsidiary undertakings or joint-ventures, where the Group's interest in the equity capital is long term and over whose operating and financial policies the Group exercises a significant influence.
Basic earnings per share: 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).
CO2e: Carbon dioxide equivalent is a measure used to compare the emissions from various greenhouse gases based upon their global warming potential.
Constant rate: The Management Board, as the chief operating decision maker, reviews current and prior period adjusted segmental income statement information of subsidiaries and associates and joint ventures at constant rates of exchange which provides an approximate guide to performance in the current period had they been translated at the prior year’s rate of exchange. The constant rate comparison provided for reporting segment information is based on a retranslation, at prior year exchange rates, of the current period results of the Group’s overseas entities but other than in exceptional circumstances, does not adjust for the normal transactional gains and losses in operations which are generated by exchange movements.
Corporate Governance Code: The principal governance rules applying to UK companies listed on the London Stock Exchange are contained in the UK Corporate Governance Code adopted by the Financial Reporting Council. The Corporate Governance Statement in the Company’s Annual Report (the “Corporate Governance Statement”), explains how the Principles of the Code have been applied by the Company and confirms the Board’s assessment that the Company has complied with the Provisions of the Code.
Click & Roll: Product innovation for Lucky Strike using a small capsule in the filter to produce a boost of menthol on demand.
Click On: Product innovation for Pall Mall using a small capsule in the filter to produce a boost of menthol on demand.
Convertibles: Product innovation for Kent using a small capsule in the filter to produce a boost of menthol on demand.