| Term used in Annual Report |
US equivalent or brief description |
| Allotted |
Issued |
| ADRs/ADSs |
American Depositary Receipts/American Depositary Shares. The Group uses the terms ADR and ADS interchangeably. One ADR/ADS represents five ordinary shares |
| Average net debt |
Average net debt is calculated as the average daily net bank borrowings of the Group, derived from the Group's automated banking system. Net debt at a period end is calculated as the sum of the net bank borrowings of the Group, derived from the cash ledgers and accounts in the balance sheet |
| Billings |
Billings comprise the gross amounts billed to clients in respect of commission-based/fee-based income together with the total of other fees earned |
| Called-up share capital |
Ordinary shares, issued and fully paid |
| Capital allowances |
Tax term equivalent to US tax depreciation allowances |
| Combined Code |
The 'Principles of Good Governance' and the provisions of the 'Code of Best Practice' issued by the Hampel Committee on Corporate Governance and the London Stock Exchange |
| Constant currency |
The Group uses US dollar-based, constant currency models to measure performance. These are calculated by applying budgeted 2007 exchange rates to local currency reported results for the current and prior year. This gives a US dollar-denominated income statement and balance sheet which exclude any variances attributable to foreign exchange rate movements |
| ESOP |
Employee share ownership plan |
| Estimated net new billings |
Net new billings represent the estimated annualised impact on billings of new business gained from both existing and new clients, net of existing client business lost. The estimated impact is based upon initial assessments of the clients' media budgets, which may not necessarily result in actual billings of the same amount |
| EURIBOR |
The euro area inter-bank offered rate for euro deposits |
| Finance lease |
Capital lease |
| Free cash flow |
Free cash flow is calculated as headline operating profit before non cash charges for share-based incentive plans, depreciation of property, plant and equipment and amortisation of other intangible assets, including dividends received from associates, interest received, investment income received, proceeds from the issue of shares, and proceeds from the disposal of property, plant and equipment, less corporation and overseas tax paid,interest and similar charges paid, dividends paid to minority shareholders in subsidiary undertakings, purchases of property, plant and equipment and purchases of other intangible assets |
| Freehold |
Ownership with absolute rights in perpetuity |
| Hampel Committee |
UK committee on corporate governance established in November 1995 toreview the implementation of the findings of the Cadbury and Greenbury Committees |
| Headline earnings |
Headline PBT less taxation and minority interests |
| Headline EBITDA |
Profit before finance income/costs, taxation, investment gains and write-downs, goodwill impairment and other goodwill write-downs, amortisation and impairment of intangible assets and depreciation of property, plant and equipment |
| Headline operating profit |
Operating profit before investment gains and write-downs, goodwill impairment and other goodwill write-downs, and amortisation and impairment of acquired intangible assets |
| Headline PBIT |
Profit before finance income/costs, taxation, investment gains and write-downs, goodwill impairment and other goodwill write-downs, and amortisation and impairment of acquired intangible assets and share of exceptional gains of associates |
| Headline PBT |
Profit before taxation, investment gains and write-downs, goodwill impairment and other goodwill write-downs, amortisation and impairment of acquired intangible assets, share of exceptional gains of associates and gains/losses arising from the revaluation of financial instruments |
| Higgs Report |
Report in the UK by Derek Higgs on the role and effectiveness of non- executive directors |
| IFRS/IAS |
International Financial Reporting Standard/International Accounting Standard |
| LIBOR |
The London inter-bank offered rate |
| Operating margin |
Headline PBIT as a percentage of revenue |
| Profit |
Income |
| Profit attributable to equity holders of the parent |
Net income |
| Pro forma ('like-for-like') |
Pro forma comparisons are calculated as follows: current year, constant currency actual results (which include acquisitions from the relevant date of completion) are compared with prior year, constant currency actual results, adjusted to include the results of acquisitions for the commensurate period in the prior year. The Group uses the terms 'pro forma' and 'like-for-like' interchangeably |
| Proposed dividend |
Dividend declared by directors but not yet approved by share owners |
| Provision against deferred tax assets |
Valuation allowance |
| Sarbanes-Oxley Act |
An Act passed in the US to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes |
| Share capital |
Ordinary shares, capital stock or common stock issued and fully paid |
| Share premium account |
Additional paid-in capital or paid-in surplus (not distributable) |
| Shares in issue |
Shares outstanding |
| Short leasehold |
A short lease is where the portion of the term remaining unexpired at the end of the financial year is less than 50 years |
| Smith Report |
Report in the UK by Sir Robert Smith on the role of audit committees |
| SORIE |
Consolidated statement of recognised income and expense |
| 2004 UK GAAP |
UK Generally Accepted Accounting Principles ('UK GAAP') extant in respect of 2004 – the basis of preparation of the Group's consolidated financial statements for the year ended 31 December 2004, as previously reported, prior to the implementation of International Financial Reporting Standards ('IFRS') |
| Turnbull Report |
Guidance issued by the Institute of Chartered Accountants in England & Wales on the implementation of the internal control requirements of the Combined Code on Corporate Governance at the request of the London Stock Exchange |
