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Supplementary Information
The information below has been provided to enhance understanding of the terminology and performance
measures that have been used in the accompanying presentations.
Group measures
The following non-GAAP measures or associated adjustments are defined in Glossary on pages 27-29 of
our fourth-quarter 2016 results announcement:
• Adjusted effective tax rate.
• Replacement cost (RC) profit or loss for the group.
• Underlying RC profit or loss.
• Inventory holding gains and losses.
• Non-operating items.
• Fair value accounting effects.
• Net debt and net debt ratio.
• Capital expenditure on an accruals basis.
• Inorganic capital expenditure on an accruals basis.
• Organic capital expenditure on an accruals basis.
Cash costs or controllable cash costs are a subset of production and manufacturing expenses plus
distribution and administration expenses. They represent the substantial majority of the expenses in these
line items but exclude certain costs that are variable, primarily with volumes (such as freight costs). They
are the principal operating and overhead costs that management considers to be most directly under their
control although they include certain foreign exchange and commodity price effects.
Free cash flow is equal to operating cash flow less net cash used in investing activities, as presented in the
group cash flow statement.
Operating cash flow
The terms 'operating cash' and 'operating cash flow' are defined as 'net cash provided by (used in)
operating activities' as stated in the group cash flow statement. When used in the context of a segment
rather than the group, the terms refer to the segment's share thereof.
Organic free cash flow
Organic free cash flow is operating cash flow less organic capital expenditure as included in the group cash
flow statement. Organic free cash flow excludes any pre-tax impacts from the Gulf of Mexico oil spill.
Organic free cash flow per share
Organic free cash flow per share is organic free cash flow divided by the estimated number of shares in
issue as at the end of 2017.
Organic Sources and Uses of cash
Organic sources (or inflows) represents operating cash flow excluding any pre-tax impacts from the Gulf of
Mexico oil spill. Organic uses (or outflows) of cash are organic capital expenditure and cash dividend as
included in the group cash flow statement.
Organic cash balance/imbalance
Organic cash balance/imbalance is the difference between the organic sources of cash and the organic
uses of cash.
