Business Overview

Financial Highlights

Volumes	2009¹	Change	2008¹
Cigarettes²	322.2bn	+10%	294.1

Financial Highlights – adjusted basis³	2009	Change	2008
Adjusted profit from operations	£2,933m	+32%	2,230
Adjusted profit before tax	£2,233m	+39%	1,607
Adjusted earnings per share	161.8p	+18%	136.9

Financial Highlights – unadjusted basis	2009	Change	2008
Revenue	£26,517m	+29%	20,528
Profit from operations	£2,337m	+59%	1,471
Profit before tax	£945m	+52%	621
Basic earnings per share	65.5p	+29%	50.6
Diluted earnings per share	65.3p	+30%	50.4
Dividend per share	73.0p	+16%	63.1

Results for 2009 include a full 12 months’ contribution from Altadis, whereas 2008 comparatives include the Altadis contribution since completion of the acquisition on 25 January 2008.
Our 2008 cigarette volumes have been restated to include third party manufacturing and distribution arrangements in certain countries.
Management believes that these non-GAAP measures provide a useful comparison of business performance and reflect the way in which the business is controlled. Definitions are included in our accounting policies within the notes to the financial statements. Reconciliations between adjusted and reported measures are also included in the relevant notes.

The Annual Report contains certain forward-looking statements with respect to the operations, performance and financial condition of the Company and the Group as a whole. By their nature, these statements involve uncertainties since future events and circumstances can cause actual results to differ materially from those anticipated. The forward-looking statements reflect knowledge and information available at the date of preparation of this Annual Report and the Company undertakes no obligation to update these forward-looking statements. Nothing in this Annual Report should be construed as a profit forecast.