Reported results - 2006
Segment information - Interim

Segment information

Six months ended 30 June 2006

Primary reporting format - geographic segments : The Group is organised into four distinct, independently managed, geographic segments : United Kingdom ('UK'), Europe, Commonwealth of Independent States ('CIS') and Rest of World (principally comprising : Africa; Asia Pacific; the Baltics; the Middle East; Poland; and, Scandinavia).

	Six months ended 30 June 2006 US$m(1)		Six months ended 30 June 2006 £m		Six months ended 30 June 2005 £m		Year ended 31 Dec. 2005 £m
Sales
UK	3,245		1,754		1,758		3,658
Europe	3,500		1,892		1,853		3,794
CIS	463		250		211		476
Rest of World	244		132		124		286
	7,452		4,028		3,946		8,214
Duty
UK	2,725		1,473		1,485		3,086
Europe	2,045		1,105		1,096		2,247
CIS	122		66		54		120
Rest of World	133		72		63		158
	5,025		2,716		2,698		5,611
Total profit from operations
UK
- before amortisation of intangible assets and exceptional items	279		151		149		310
- amortisation of intangible assets	(4)		(2)		(2)		(4)
- exceptional items	(8)		(4)		(15)		(22)
	267		145		132		284
Europe
- before amortisation of intangible assets and exceptional items	244		132		127		259
- amortisation of intangible assets	(14)		(8)		(7)		(15)
- exceptional items	3		2		(14)		(10)
	233		126		106		234
CIS
- before amortisation of intangible assets	65		35		23		67
- amortisation of intangible assets	-		-		-		-
	65		35		23		67
Rest of World
- before amortisation of intangible assets and exceptional items	9		5		15		34
- amortisation of intangible assets	-		-		-		-
- exceptional items	(7)		(4)		-		(3)
	2		1		15		31
Total
- before amortisation of intangible assets and exceptional items	597		323		314		670
- amortisation of intangible assets	(18)		(10)		(9)		(19)
- exceptional items	(12)		(6)		(29)		(35)
	567		307		276		616

Share of post-tax results of associates and joint ventures is £12m (six months to 30 June 2005 : £7m; year ended 31 December 2005 : £17m) within the Europe segment. Operating profit of £295m (six months to 30 June 2005 : £269m; year ended 31 December 2005 : £599m) comprises total profit from operations less the share of post-tax results of associates and joint ventures.

Secondary reporting format – business segments : The Group's operations comprise two main business segments: the manufacture, marketing and selling of tobacco products ('tobacco'); and, the distribution of tobacco and non-tobacco products ('distribution'). The distribution operations are all within the Europe business segment.

	Six months ended 30 June 2006 US$m(1)		Six months ended 30 June 2006 £m		Six months ended 30 June 2005 £m		Year ended 31 Dec. 2005 £m
Sales
Tobacco	5,706		3,084		2,996		6,254
Distribution	1,746		944		950		1,960
	7,452		4,028		3,946		8,214
Duty
Tobacco	4,224		2,283		2,287		4,750
Distribution	801		433		411		861
	5,025		2,716		2,698		5,611
Total profit from operations
Tobacco
- before amortisation of intangible assets and exceptional items	538		291		284		605
- amortisation of intangible assets	(14)		(8)		(5)		(12)
- exceptional items	(12)		(6)		(28)		(25)
	512		277		251		568
Distribution
- before amortisation of intangible assets and exceptional items	59		32		30		65
- amortisation of intangible assets	(4)		(2)		(4)		(7)
- exceptional items	-		-		(1)		(10)
	55		30		25		48
Total
- before amortisation of intangible assets and exceptional items	597		323		314		670
- amortisation of intangible assets	(18)		(10)		(9)		(19)
- exceptional items	(12)		(6)		(29)		(35)
	567		307		276		616

Source : interim results 2006 news release