REED ELSEVIER PLC > NOTES TO THE FINANCIAL STATEMENTS Adjusted figures 9 82 REED ELSEVIER ANNUAL REPORTS & FINANCIAL STATEMENTS 2003 2003 2002 £m £m Profit before tax 267 146 Effect of tax credit equalisation on distributed earnings 8 7 Profit before tax based on 52.9% economic interest in the Reed Elsevier combined businesses 275 153 Adjustments: Amortisation of goodwill and intangible assets 235 279 Exceptional items 24 58 Adjusted profit before tax 534 490 Profit attributable to ordinary shareholders 169 89 Effect of tax credit equalisation on distributed earnings 8 7 Profit attributable to ordinary shareholders based on 52.9% economic interest in the  Reed Elsevier combined businesses 177 96 Adjustments: Amortisation of goodwill and intangible assets 237 271 Exceptional items (20) (6) Adjusted profit attributable to ordinary shareholders 394 361 2003 2002 pence pence Basic earnings per ordinary share 13.4 7.0 Effect of tax credit equalisation on distributed earnings 0.6 0.6 Earnings per share based on 52.9% economic interest in the Reed Elsevier combined businesses 14.0 7.6 Adjustments: Amortisation of goodwill and intangible assets 18.8 21.4 Exceptional items (1.6) (0.5) Adjusted earnings per ordinary share 31.2 28.5 2003 2002 2003 2002 pence pence £m £m Ordinary shares of 12.5 pence each Interim 3.3 3.2 42 41 Final (2003 proposed) 8.7 8.0 110 102 Total 12.0 11.2 152 143 Dividends  8 2003 2002 £m £m UK corporation tax  1 1 Share of tax arising in joint ventures: Before amortisation and exceptional items 139 128 On amortisation and exceptional items (42) (72) Total 98 57 Tax on profit on ordinary activities 7 UK corporation tax has been provided at 30% (2002: 30%). The share of tax arising in joint ventures as a proportion of the share of profit before tax is increased due to non tax-deductible amortisation and reduced due to exceptional tax credits. Adjusted profit and cash flow figures are used as additional performance measures. The adjusted figures are derived as follows: