Notes to the Pro Forma Financial Statements (37 kb) - Investis

Notes to the Pro Forma Financial Statements
for the year ended 31 December 2000
1 Basis of preparation of consolidated pro forma statements
The consolidated pro forma statements comprise the accounts of the Company and those companies which, following
the demerger of the Kidde Group (‘Kidde’), remain as subsidiaries. They have been prepared under the historical cost
convention and (save as mentioned below) in accordance with applicable accounting standards. Because of the nature
of pro forma statements, they cannot give a complete picture of the financial position of the Chubb Group.
Significant changes were made to the financing structure of the Group as part of the demerger making the Group
results difficult to compare year on year as they include Kidde and businesses sold for the full year in 1999 and only
up to demerger or dates of disposal in 2000 respectively. The pro forma statements therefore represent the Group results
as reported but after excluding Kidde and businesses sold and after having been adjusted to reflect the changes made
to the financing and taxation structure as part of the demerger, on the assumption that this structure had been in place
since 1 January 1999.
The Chubb Group pro forma statements do not comprise statutory accounts within the meaning of Section 240 of the
Companies Act 1985 and are unaudited. The audited Chubb plc financial statements, including Kidde to demerger and
other discontinued businesses, are shown on pages 32 to 58.
2 Business analysis
2000 1999
Net Net
operating operating
Turnover Profit assets Turnover Profit assets
£m £m £m £m £m £m
By business sector
Asia Pacific 530.8 50.0 308.2 491.1 55.8 232.1
UK, Ireland and Southern Africa 399.1 36.5 198.4 394.2 44.8 188.3
Continental Europe 270.0 27.1 174.8 227.5 26.0 104.3
Americas 62.3 11.0 43.2 47.3 8.7 17.4
Tesa Entry Systems 50.9 5.6 21.6 47.5 11.2 17.2
1,313.1 130.2 746.2 1,207.6 146.5 559.3
Tesa Hardware 67.9 9.2 51.9 65.2 10.7 43.9
1,381.0 139.4 798.1 1,272.8 157.2 603.2
Operating exceptional items – (17.9) – – – –
Acquisition reorganisation costs – (27.6) – – (17.1) –
Goodwill amortisation – (28.5) – – (15.6) –
1,381.0 65.4 798.1 1,272.8 124.5 603.2
By geographic origin
Asia Pacific 531.0 13.1 308.3 491.1 47.2 232.1
UK, Ireland and Southern Africa 399.5 17.4 198.7 394.2 32.1 188.3
Continental Europe 329.9 22.6 215.1 288.5 28.8 132.6
Americas 120.6 12.3 76.0 99.0 16.4 50.2
1,381.0 65.4 798.1 1,272.8 124.5 603.2
Profit by business sector has been shown before charging operating exceptional items and before allocating acquisition
reorganisation costs and goodwill amortisation to facilitate comparison of the underlying performance.
30 Chubb plc | Annual Report & Accounts Notes to the Pro Forma Financial Statements

3 Operating exceptional items
Notes to the Pro Forma Financial Statements
2000 1999
£m £m
Contract losses in China 8.9 –
Chubb Information Security (CIS) development costs 4.0 –
Provision in respect of debtors reduction programme 5.0 –
Total operating exceptional items 17.9 –
4 Finance charge
The pro forma finance charge includes an adjustment to reflect the post demerger capital structure as if the structure
had been in place since 1 January 1999. The adjustment has been calculated by reference to average indebtedness
that would have arisen from this revised capital structure at the average variable interest rate borne by the Chubb Group
on external borrowings.
5 Taxation
The pro forma tax charge reflects the impact of the adjusted finance charges and capital structure of the Chubb Group
following the demerger as if they had been in place since 1 January 1999, without the benefits of the previous Group’s tax
arrangements. The effective taxation rate implied by the pro forma charge is 32.5% (1999 32.5%).
6 Earnings per share
2000 1999
Basic Adjusted Basic Adjusted
£m £m £m £m
Profit on ordinary activities before tax 33.5 33.5 106.9 106.9
Contract losses in China – 8.9 – –
Development costs written off – 4.0 – –
Provision in respect of debtors reduction programme – 5.0 – –
Acquisition reorganisation costs – 27.6 .– 17.1
Goodwill amortisation – 28.5 .– 15.6
33.5 107.5 106.9 139.6
Tax charge (22.8) (22.8) (39.8) (39.8)
Tax on contract losses in China – (1.5) – –
Tax on provision in respect of debtors reduction programme – (1.6) – –
Tax on acquisition reorganisation costs – (9.0) .– (5.6)
Minority interest 2.8 (1.0) (5.0) (5.0)
13.5 71.6 62.1 89.2
Number of shares 828.5m 828.5m 828.5m 828.5m
Earnings per share 1.6p 8.6p 7.5p 10.8p
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