Foreign Exchange and Comparative Reporting

The Group has both a transaction and translation exposure to movements in foreign currency rates. The effective rate for the translation of results from foreign currency subsidiaries was €1:£0.85 (FY10: €1:£0.89) and the effective rate for the translation of foreign currency revenue/net revenue transactions was €1:£0.86 (FY10: €1:£0.82) resulting in an effective rate of €1:£0.88 (FY2010: €1:£0.82) at operating profit level.

The Group policy is to hedge an appropriate portion of its foreign currency transaction exposure for a period of up to 2 years ahead. The principal foreign currency forward contracts in place at 28 February 2011 are:

  2012
   
Sterling amount (m) 20.0
Average forward rate (Euro:Stg) 0.84

Comparisons for revenue, net revenue and operating profit for each of the Group’s operating segments are shown at constant exchange rates for transactions by subsidiary undertakings in currencies other than their functional currency and for translation in relation to the Group’s sterling denominated subsidiaries by restating the prior year at FY2011 effective rates. Applying the realised FY2011 foreign currency rates to the reported FY2010 revenue, net revenue and operating profit rebases the comparatives as follows:

  Year ended
28 Feb
2010 (i)
€m
FX
Transaction
€m
FX
Translation
€m
Year ended
28 Feb
2010
Constant
currency
comparative
€m
         
Revenue        
Cider – ROI 153.0 - - 153.0
Cider – GB 149.0 (7.1) 0.2 142.1
Cider – NI 18.5 - 0.7 19.2
Cider – Export 15.7 0.5 - 16.2
Tennent’s GB 70.7 - 3.5 74.2
Tennent’s Ireland 10.3 - 0.4 10.7
Third Party Brands 73.6 - 3.5 77.1
Total 490.8 (6.6) 8.3 492.5
         
Net revenue        
Cider – ROI 107.6 - - 107.6
Cider – GB 122.8 (6.2) 0.1 116.7
Cider – NI 15.1 - 0.6 15.7
Cider – Export 15.7 0.5 - 16.2
Tennent’s GB 31.1 - 1.5 32.6
Tennent’s Ireland 6.3 - 0.3 6.6
Third Party Brands 64.1 - 3.0 67.1
Total 362.7 (5.7) 5.5 362.5
         
Operating Profit –
before exceptional items
       
Cider – ROI 44.3 (0.1) - 44.2
Cider – GB 19.7 (4.0) - 15.7
Cider – NI 2.9 - 0.1 3.0
Cider – Export 1.5 - - 1.5
Tennent’s GB 2.2 - 0.1 2.3
Tennent’s Ireland 1.5 - 0.1 1.6
Third Party Brands 2.7 - 0.2 2.9
Total 74.8 (4.1) 0.5 71.2

(i) Continuing operations, i.e. excludes the Revenue, Net revenue and Operating Profit of the Group’s discontinued Spirits & Liqueurs business.

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