Use of non-IFRS measures (unaudited)
We use certain alternative performance measures to make financial, operating, and planning decisions
and to evaluate and report performance. We believe these measures provide useful information to
investors and as such, where clearly identified, we have included certain alternative performance measures
in this document to allow investors to better analyse our business performance and allow greater
comparability. To do so, we have excluded items affecting the comparability of period-over-period financial
performance. Adjusted Results and other non-IFRS measures may be considered in addition to, but not as
a substitute for or superior to, information presented in accordance with IFRS.
Adjusted Results
Adjusted results comprise adjusted gross profit, adjusted gross profit margin, adjusted selling, general and administration (SG&A), adjusted research and development (R&D), adjusted other operating income/(expense), adjusted operating profit, adjusted operating profit margin, adjusted income tax, adjusted effective tax rate, adjusted profit attributable to shareholders, adjusted diluted earnings per share. Adjusted results exclude net amortisation and impairment of intangible assets, restructuring costs, transaction-related costs, separation and admission costs, and disposals and others, in each case net of the impact of taxes (where applicable) (collectively the adjusting items).
Management believes that adjusted results, when considered together with the Group’s operating results as reported under IFRS, provide investors, analysts and other stakeholders with helpful complementary information to understand the financial performance and position of the Group from period to period and allow the Group’s performance to be more easily comparable.
Adjusting items
Adjusted results exclude the following items (net of the impact of taxes, where applicable):
Net amortisation and impairment of intangible assets
Net impairment of intangibles, impairment of goodwill and amortisation of acquired intangible assets, excluding computer software. These adjustments are made to reflect the performance of the business excluding the effect of acquisitions.
Restructuring costs
From time to time, the Group may undertake business restructuring programmes that are structural in nature and significant in scale. The cost associated with such programmes includes severance and other personnel costs, professional fees, impairments of assets, and other related items.
Transaction-related costs
Transaction-related accounting or other adjustments related to significant acquisitions including deal costs and other pre-acquisition costs, when there is certainty that an acquisition will complete. It also includes the costs of registering and issuing debt and equity securities and the effect of inventory revaluations on acquisitions.
