Definition of Cash Profit

Cash Profit will be calculated as follows:

• Statutory/Headline Profit
  adjusted for
  • (+/-) Significant items and incremental integration costs
  • (+/-) AIFRS adjustments to bring prior periods to full comparable basis*
  • (+/-) Fair Value Hedge gains/losses**
• Equals Cash Profit

Focus will continue to be on Basic Earnings per Share

*Under AIFRS transitional provisions, for statutory reporting purposes prior period comparatives are not restated for a number of AIFRS standards (i.e. AASB 139, AASB 132, AASB 4). However, to ensure the greatest degree of comparability adjustments have been made to prior period numbers for these standards.

**AIFRS requires that derivatives in a hedging relationship be measured at fair value. The periodic revaluation of hedges is not considered part of underlying business activity. As hedges are closed any gain/loss will be reported in the P&L and included in cash profit.