COMBINED FINANCIAL STATEMENTS Combined profit and loss account Adjusted figures, which exclude the amortisation of goodwill and intangible assets, exceptional items and related tax effects, are presented as additional performance measures, and are reconciled to the reported figures in note 10 to the combined financial statements. 42 REED ELSEVIER ANNUAL REPORTS & FINANCIAL STATEMENTS 2003 For the year ended 31 December 2003 2003 2002 2003 2002 Note £m £m € m € m Turnover Including share of turnover of joint ventures 5,006 5,094 7,259 8,099 Less: share of turnover of joint ventures (81) (74) (118) (117) 1 4,925 5,020 7,141 7,982 Continuing operations before acquisitions 4,845 5,020 7,025 7,982 Acquisitions 80 – 116 – Cost of sales 2 (1,764) (1,794) (2,558) (2,852) Gross profit 3,161 3,226 4,583 5,130 Operating expenses 2 (2,516) (2,736) (3,648) (4,351) Before amortisation and exceptional items (2,002) (2,113) (2,902) (3,361) Amortisation of goodwill and intangible assets (442) (524) (641) (833) Exceptional items 6 (72) (99) (105) (157) Operating profit (before joint ventures) 645 490 935 779 Continuing operations before acquisitions 659 490 955 779 Acquisitions (14) – (20) – Share of operating profit of joint ventures 16 17 23 27 Operating profit including joint ventures 1,5 661 507 958 806 Non operating exceptional items  Net profit/(loss) on disposal of businesses and fixed asset investments 6 26 (12) 37 (19) Profit on ordinary activities before interest 687 495 995 787 Net interest expense 7 (168) (206) (243) (327) Profit on ordinary activities before taxation 519 289 752 460 Tax on profit on ordinary activities 8 (183) (107) (265) (171) Profit on ordinary activities after taxation 336 182 487 289 Minority interests (2) (1) (3) (1) Profit attributable to parent companies’ shareholders 26 334 181 484 288 Equity dividends paid and proposed 9 (304) (282) (441) (448) Retained profit/(loss) taken to combined reserves 30 (101) 43 (160) 2003 2002 2003 2002 Note £m £m € m € m Adjusted operating profit 1,10 1,178 1,133 1,708 1,801 Adjusted profit before tax 10 1,010 927 1,465 1,474 Adjusted profit attributable to parent companies’ shareholders 10 744 682 1,079 1,084 Adjusted figures