Cockpit
Statements
Final Results 2009
Final results of the Obermatt Bonus Index 2009 will be published on April 19, 2010. Shareholder advisories such as Manifest (U.K.) and DSW (Germany) and the company receive their Bonus Index result within 10 days of published annual results.
First Estimate 2009 (based on half-year reporting)
I. Executive Summary
In the current Obermatt Bonus Index 78 executive boards of the FTSE 100 companies have managed to beat their global competitors. In other words, about 70% of UK listed companies have outperformed their international competitors with the Half Year Results 2009. For those companies a bonus multiple of 1 or more is justified. In comparison, only about 30% of the SMI/SPI companies listed in Switzerland and of the DAX 100 companies listed in Germany outperformed their global peers.
The Fine Chemical division of Johnson Matthey, followed by pharmaceutical company Shire, Aviva, Prudential and the software company Autonomy have performed best during the current economic downturn and Obermatt gave them a bonus multiple recommendation of 1.8 to 2.0. Top 10 rank was also achieved by publishing group Reed Elsevier, inspection company Intertek, construction and engineering company Petrofac, internet telephone provider Inmarsat and Vodafone with bonus multiples between 1.7 and 1.8. Other above average results were achieved by companies such as Aerospace & Defence company Rolls Royce (1.6), AstraZeneca (1.5), service group Serco (1.5) and BP (1.4). The best ranked banks are Standard Chartered and Barclays with bonus multiples of 1.5 each. At the other end of the spectrum companies such as Cadbury Schweppes and BT (both 0.6) and British Airways (0.5) underperformed compared with the global peers in their respective industries in the first half of 2009.
II. Method
1 Purpose
The purpose of the Obermatt Bonus Index is to calculate deserved bonuses based on indexed operating performance for public companies and their significant divisions (business segments). Indexed bonuses have the advantage that they pay appropriate bonuses that are neither too high nor too low. Traditional non-indexed bonus plans typically pay excessively high bonuses in up-cycles and bonuses that are too low in downturns. Indexed bonuses avoid this by assessing performance relative to peers, thereby measuring true operating performance only, not the economy’s performance (external factors such as business cycles, resource price changes, customer demand or market sentiment at the stock exchanges etc.).
This is why indexed bonuses stay fairer even in strong up or down-cycles. Indexed bonuses do not need pre-negotiated financial targets. Therefore, they can be assessed outside-in by the objectively derived Obermatt Bonus Index. Indexed bonuses for assessed companies or divisions are determined in a three stage process:
| 1. | Obermatt creates a peer universe of comparable companies which defines the relevant market of the assessed company. |
| 2. | Obermatt determines the actual performance of the assessed company as Operating Rank. |
| 3. | Based on the achieved Operating Rank |
2 Definition of the Peer Universe
Defining the industry sector and selecting an appropriate peer universe is paramount to the Bonus Index results. Peer selection involves selecting companies which are in the same line of business as the company or division being ranked. For this purpose, Obermatt uses the Standard Industrial Classification (SIC) and the Global Industry Classification Standard (GICS) to categorize the selected companies to their particular industry sector. Additionally, Obermatt performs a keyword and a manual search to narrow the peer universe to represent the company to be ranked as accurately as possible. Each peer universe ideally comprises around 30-200 companies. However, in some cases the peer universe can be smaller than 30 or even larger than 200 companies.
More information on www.obermatt.com/peer-universe.
3 Operating Rank
The Operating Rank converts the absolute values of performance measures to percentile rank values. Operating Rank shows the operating performance on any financial metric of a company against the performance of all peer companies for that same metric. The indexed performance is provided by showing the percentile ranks on a percentile rank chart called Operating Rank. Operating Rank is calculated using actual historic data or deltas of that data from one period to the next. Operating Rank is part of Obermatt's indexed operating performance approach to indexed performance management and investing.
More at www.obermatt.com/operating-rank.
4 Performance Metric
For the Bonus Index, actual performance is based on organic EBITDA or EBIT where EBITDA is not available. For financial institutions, EBITDA is replaced by Operating Income. Organic EBITDA (resp. Operating Income, not separately mentioned thereafter) is free from extraordinary effects, such as effects from mergers and acquisitions activity and restructuring. Obermatt uses organic EBITDA as reported by the Thomson Reuters Worldscope database. This database adjusts for non operational activities such as sales of divisions, one-off depreciation, restructuring costs and other special items. To further increase the quality and reliability of the Bonus Index, financial data of the 10% best performers were manually verified and, if necessary, adjusted. For Obermatt Bonus Index Inside customers, other financial metrics such as Delta Economic Profit or Sales Growth may be used in the Bonus Index. In such situations, peer data may not be derived from the Thomson Reuters Worldscope database but rather compiled manually by Obermatt.
Obermatt indexes EBITDA by calculating the Operating Rank of Delta EBITDA. This value is standardized by Sales or Invested Capital to make peers of different size comparable (Delta EBITDA ./. Sales or Delta EBITDA ./. Invested Capital). This figure is robust against influences by accounting decisions and not affected by base level effects of EBITDA and thus works for negative EBITDA levels as well. Increasing this metric always increases the theoretical enterprise value. Therefore, management can maximize this value in the long term because more EBITDA in the long term is always better than less. This is not the case for other financial ratios such as margins (EBIT Margin) or returns (RONOA, ROCE, etc.). For financial institutions, the Sales standardization is replaced by an Average Equity standardization.
5 Bonus Multiple
Since Operating Ranks are independent of external factors (including investor sentiment) and a standardized performance measure, deserved bonus levels are directly derived from the Operating Rank. The Bonus Index uses the following formula for calculating the Bonus Multiple.
Bonus Multiple = 2 * Operating Rank on Delta EBITDA (standardized by sales)
The Bonus Multiple is the factor by which individually agreed target bonuses (e.g. typically expected or average historic bonus levels) are multiplied to obtain the actually deserved indexed bonus. For instance, if the agreed target bonus is €10’000 and the Bonus Multiple is 1.2, the deserved actual bonus is €12’000 (1.2 times €10’000).
This bonus formula pays no bonus for the worst performance, average or expected (1.0 x bonus) bonuses when the Operating Rank is 50%, and 2.0 times bonus when the Operating Rank is 100%.
Bonus Index Inside customers may replace this formula with another previously agreed formula depending on their strategic goals and their compensation philosophy. For instance, a growth focused company may pay 100% bonus at an Operating Rank of 75%. Another company that pays bonuses only for outperformance might decide not to allocate a bonus below an Operating Rank of 50%. The bonus formula is typically determined by the board of directors at the beginning of the performance measurement period. In case it is desired by the company, this company specific indexing formula is used for calculating the bonus multiplier in the Obermatt Bonus Index.
The following graph illustrates how Operating Rank is converted into Bonus Multiples:
III. Bonus Index – First Estimate 2009
1 Sorted by Bonus Multiple
| Bonus Multiple |
Company Name | Ranked by Metric | Metric Value | Operating Index | Operating Alpha | Operating Rank | Peer Universe | Number of Peers |
| 2.0 | Johnson Matthey - Fine Chemicals & Catalyst | Delta EBIT | 9.50% | -3.50% | 13.00% | 98% | Fine Chemical | 110 |
| 1.8 | Shire | Delta EBITDA | 12.00% | 0.20% | 11.90% | 92% | Pharma large only | 113 |
| 1.8 | Aviva | Delta Operating Income | 13.00% | -1.30% | 14.30% | 91% | Multi-line Insurer Europe | 53 |
| 1.8 | Prudential | Delta Operating Income | 13.70% | -0.80% | 14.50% | 90% | Life Insurance | 131 |
| 1.8 | Autonomy | Delta EBITDA | 26.50% | 4.30% | 22.20% | 88% | Application Software | 107 |
| 1.7 | Reed Elsevier | Delta EBIT | 5.30% | -5.60% | 10.90% | 87% | Education & Media | 118 |
| 1.7 | Intertek | Delta EBITDA | 7.30% | 0.10% | 7.30% | 87% | Testing/Inspection/Verification | 123 |
| 1.7 | Petrofac | Delta EBITDA | 4.60% | 0.30% | 4.20% | 86% | Construction & Engineering Services | 163 |
| 1.7 | Inmarsat | Delta EBITDA | 7.10% | -0.10% | 7.20% | 85% | Internet Telephony / DSL Provider | 130 |
| 1.7 | Vodafone | Delta EBITDA | 10.10% | 1.40% | 8.70% | 85% | Internet / Telephone Communication | 254 |
| 1.7 | Whitbread | Delta EBITDA | 2.40% | -0.50% | 2.90% | 85% | Food Service | 104 |
| 1.7 | Cable & Wireless | Delta EBITDA | 5.70% | 0.60% | 5.10% | 85% | Telecommunication & Internet | 96 |
| 1.7 | Tui Travel | Delta EBIT | 7.80% | -3.50% | 11.30% | 84% | Tourism / Container Shipping | 278 |
| 1.7 | Fresnillo | Delta EBITDA | 3.90% | -22.70% | 26.60% | 84% | Metals & Mining | 110 |
| 1.7 | British Sky Broadcasting | Delta EBITDA | 6.20% | -1.90% | 8.00% | 83% | Television Channel Providers | 134 |
| 1.7 | Smiths - Specialty Engineered Products | Delta EBIT | 6.40% | -2.20% | 8.60% | 83% | Specialty Engineered Products | 93 |
| 1.7 | Kazakhmys | Delta EBITDA | 3.30% | -22.70% | 26.00% | 83% | Metals & Mining | 110 |
| 1.6 | Rolls Royce | Delta EBITDA | 5.30% | -0.10% | 5.40% | 82% | Aerospace & Defence | 118 |
| 1.6 | Reckitt Benckiser | Delta EBIT | 6.10% | 0.60% | 5.50% | 81% | Detergents | 80 |
| 1.6 | Experian | Delta EBITDA | 6.70% | 2.40% | 4.20% | 79% | Consumer Service | 85 |
| 1.6 | Legal & General Group | Delta Operating Income | 6.80% | -0.10% | 6.80% | 78% | Insurance | 256 |
| 1.5 | Standard Chartered | Delta Operating Income | 3.70% | -0.10% | 3.70% | 77% | Very Large Diversified Global Banks | 39 |
| 1.5 | Serco | Delta EBITDA | 2.00% | 0.00% | 2.00% | 77% | Service | 113 |
| 1.5 | Hammerson | Delta Operating Income | 0.60% | 0.00% | 0.50% | 76% | NonResidential Property Investment | 92 |
| 1.5 | AstraZeneca | Delta EBITDA | 6.20% | 0.20% | 6.00% | 76% | Pharma large only | 113 |
| 1.5 | Associated British Foods - Retail Store | Delta EBIT | 0.60% | -0.70% | 1.40% | 75% | Retail Store | 86 |
| 1.5 | Tesco | Delta EBITDA | 0.90% | 0.00% | 0.90% | 74% | Retailer | 180 |
| 1.5 | Barclays | Delta Operating Income | 2.70% | -0.10% | 2.80% | 74% | Very Large Diversified Global Banks | 39 |
| 1.5 | Pearson | Delta EBITDA | 1.40% | -6.60% | 8.00% | 74% | Education & Media | 118 |
| 1.5 | Carnival | Delta EBITDA | 2.00% | -2.10% | 4.10% | 74% | Leisure Travel | 109 |
| 1.5 | Scottish and Southern Energy | Delta EBITDA | 4.50% | 0.10% | 4.40% | 74% | Energy Generation /Distribution | 283 |
| 1.5 | Johnson Matthey | Divisional Average | -2.50% | -7.00% | 4.50% | 73% | Divisional Average | n/a |
| 1.4 | BG Group | Delta EBITDA | -7.30% | -27.20% | 19.80% | 72% | Petroleum & Gas | 155 |
| 1.4 | WPP | Delta EBITDA | 0.00% | -3.80% | 3.80% | 72% | Advertising & Media | 86 |
| 1.4 | Imperial Tobacco | Delta EBITDA | 9.00% | 0.30% | 8.70% | 71% | Tobacoo | 31 |
| 1.4 | Severn Trent | Delta EBIT | 1.60% | -1.00% | 2.60% | 71% | Waste Water Services | 118 |
| 1.4 | Alliance | Delta Operating Income | 0.40% | 0.10% | 0.30% | 71% | Investment Service | 188 |
| 1.4 | Smith & Nephew | Delta EBITDA | 6.10% | 0.70% | 5.40% | 71% | Medical Device | 96 |
| 1.4 | RBS | Delta Operating Income | 1.80% | -0.10% | 1.90% | 71% | Very Large Diversified Global Banks | 39 |
| 1.4 | Smith - Medical | Delta EBIT | 2.50% | -0.80% | 3.30% | 70% | Analytical Equipment | 177 |
| 1.4 | BP | Delta EBITDA | -8.40% | -27.20% | 18.80% | 69% | Petroleum & Gas | 155 |
| 1.4 | Standard Life | Delta Operating Income | -0.90% | -4.30% | 3.40% | 69% | Asset Management | 106 |
| 1.4 | Vedanta Resources | Delta EBITDA | -7.60% | -22.70% | 15.10% | 68% | Metals & Mining | 110 |
| 1.4 | Capita | Delta EBITDA | 1.70% | -0.60% | 2.30% | 68% | Management Consulting Service | 70 |
| 1.3 | BAE Systems | Delta EBITDA | 0.80% | -1.00% | 1.80% | 67% | Aerospace & Defense Service | 132 |
| 1.3 | Admiral | Delta Operating Income | 1.90% | -0.60% | 2.40% | 67% | Car Insurance | 112 |
| 1.3 | International Power | Delta EBITDA | 3.10% | 0.50% | 2.60% | 67% | Energy & Clean & Europe | 66 |
| 1.3 | British American Tobacco | Delta EBIT | 5.00% | 0.50% | 4.50% | 67% | Tobacoo | 31 |
| 1.3 | Johnson Matthey - Environmental Technologies | Delta EBIT | -2.50% | -7.00% | 4.50% | 65% | Environmental Technologies | 61 |
| 1.3 | ICAP | Delta Operating Income | -0.60% | -3.40% | 2.70% | 65% | Broker Services | 113 |
| 1.3 | F&C | Delta Operating Income | -1.50% | -4.30% | 2.90% | 64% | Asset Management | 106 |
| 1.3 | Associated British Foods - Sugar & Agriculture | Delta EBIT | 2.00% | 0.80% | 1.20% | 64% | Sugar Industry | 252 |
| 1.3 | Kingfisher | Delta EBITDA | -0.20% | -1.00% | 0.70% | 63% | Home Improvement | 139 |
| 1.2 | Smiths Group PLC (Division Average) | Divisional Average | 2.50% | -0.80% | 3.30% | 62% | Divisional Average | n/a |
| 1.2 | Associated British Foods PLC (Division Average) | Divisional Average | 0.60% | 0.60% | 0.00% | 62% | Divisional Average | n/a |
| 1.2 | Friends Provident | Delta Operating Income | 1.30% | -0.80% | 2.10% | 62% | Life Insurance | 131 |
| 1.2 | National Grid | Delta EBITDA | 1.20% | -0.30% | 1.50% | 61% | Electric | 129 |
| 1.2 | Associated British Foods - Grocery | Delta EBIT | 1.40% | 0.70% | 0.70% | 60% | Grocery | 108 |
| 1.2 | BHP Billiton | Delta EBITDA | -10.60% | -22.70% | 12.10% | 59% | Metals & Mining | 110 |
| 1.2 | GlaxoSmithKline | Delta EBITDA | 1.20% | 0.20% | 1.00% | 59% | Pharma large only | 113 |
| 1.2 | Land Securities | Delta Operating Income | -0.40% | -1.40% | 1.00% | 59% | Retail Estate Service | 150 |
| 1.2 | Invensys | Delta EBITDA | -1.40% | -4.40% | 3.00% | 58% | System Solutions | 126 |
| 1.2 | Balfour Beatty | Delta EBITDA | 1.00% | 0.30% | 0.60% | 58% | Construction & Engineering Services | 163 |
| 1.2 | United Utilities | Delta EBITDA | 0.70% | -0.40% | 1.10% | 58% | Waste Water Services | 118 |
| 1.2 | Sainsbury | Delta EBIT | 0.20% | 0.00% | 0.20% | 58% | Retailer | 180 |
| 1.1 | Johnson Matthey - Precious Metals | Delta EBIT | -1.10% | -2.70% | 1.60% | 57% | Precious Metals & Products | 31 |
| 1.1 | Bunzl Public | Delta EBITDA | 0.30% | -0.10% | 0.40% | 56% | Industrial Supplies | 50 |
| 1.1 | Intercontinental Hotels | Delta EBITDA | -4.80% | -6.90% | 2.10% | 55% | Hotels | 107 |
| 1.1 | Rio Tinto | Delta EBITDA | -13.50% | -22.70% | 9.30% | 55% | Metals & Mining | 110 |
| 1.1 | Pennon | Delta EBITDA | 0.30% | -0.40% | 0.70% | 54% | Waste Water Services | 118 |
| 1.1 | NEXT | Delta EBITDA | -0.70% | -0.90% | 0.20% | 54% | Clothing, Apparel and Shoes | 127 |
| 1.0 | Liberty International | Delta Operating Income | 0.10% | 0.00% | 0.00% | 52% | NonResidential Property Investment | 92 |
| 1.0 | Morrison | Delta EBITDA | 0.10% | 0.00% | 0.00% | 52% | Retailer | 180 |
| 1.0 | Centrica | Delta EBITDA | -0.30% | -0.30% | 0.00% | 51% | Electric | 129 |
| 1.0 | Associated British Foods - Ingredients | Delta EBIT | 0.60% | 0.60% | 0.00% | 50% | Bakery Producers | 115 |
| 1.0 | Xstrata | Delta EBITDA | -22.90% | -22.70% | -0.10% | 49% | Metals & Mining | 110 |
| 1.0 | Home Retail | Delta EBITDA | 0.10% | 0.20% | -0.10% | 48% | Merchandise Retailing | 100 |
| 0.9 | Schroders | Delta Operating Income | -5.30% | -4.30% | -1.00% | 47% | Asset Management | 106 |
| 0.9 | British Land Company | Delta Operating Income | -0.20% | 0.00% | -0.30% | 47% | NonResidential Property Investment | 92 |
| 0.9 | AMEC | Delta EBITDA | -0.30% | 0.30% | -0.60% | 45% | Construction & Engineering Services | 163 |
| 0.8 | RSA Insurance | Delta Operating Income | -2.30% | -0.80% | -1.50% | 42% | Life Insurance | 131 |
| 0.8 | Tullow Oil | Delta EBITDA | -48.70% | -27.20% | -21.50% | 40% | Petroleum & Gas | 155 |
| 0.8 | Randgold Resources | Delta EBITDA | 2.60% | 7.40% | -4.80% | 39% | Gold Ore | 153 |
| 0.8 | Old Mutual | Delta Operating Income | -3.00% | -0.80% | -2.20% | 38% | Life Insurance | 131 |
| 0.7 | G4S | Delta EBITDA | -1.10% | 0.90% | -2.00% | 35% | Security Service | 42 |
| 0.7 | Smiths - Detection | Delta EBIT | -4.70% | -3.40% | -1.40% | 34% | Industrial Conglomerates Large | 83 |
| 0.7 | Rexam | Delta EBITDA | -5.60% | -1.40% | -4.30% | 33% | Glass Packaging | 52 |
| 0.7 | Shell | Delta EBITDA | -18.90% | -13.10% | -5.80% | 33% | Exploration & Production | 57 |
| 0.7 | SABMiller | Delta EBIT | -0.30% | 1.70% | -1.90% | 33% | Breweries | 110 |
| 0.6 | Cadbury Schweppes | Delta EBITDA | -1.50% | 0.50% | -2.00% | 32% | Chocolate & Confectionery | 156 |
| 0.6 | ENRC | Delta EBITDA | -45.60% | -22.70% | -22.90% | 30% | Metals & Mining | 110 |
| 0.6 | Cairn Energy | Delta EBIT | -70.40% | -30.30% | -40.10% | 30% | Petroleum & Gas | 155 |
| 0.6 | BT Group | Delta EBITDA | -4.40% | -0.80% | -3.60% | 29% | Telecommunications | 98 |
| 0.6 | Antofagasta | Delta EBITDA | -59.10% | -22.70% | -36.30% | 29% | Metals & Mining | 110 |
| 0.5 | Anglo American | Delta EBITDA | -24.40% | -6.80% | -17.50% | 25% | Copper / Zinc Mining | 45 |
| 0.5 | British Airways | Delta EBITDA | -7.50% | -1.00% | -6.40% | 24% | Airline | 63 |
| 0.5 | Diageo | Delta EBITDA | -1.30% | 1.70% | -3.00% | 23% | Distillers | 58 |
| 0.3 | Lonmin | Delta EBITDA | -94.20% | -22.70% | -71.50% | 16% | Metals & Mining | 110 |
| 0.0 | Lloyds Banking | Delta Operating Income | -31.40% | -0.10% | -31.40% | 0% | Very Large Diversified Global Banks | 39 |
2 Sorted by Company
| Company Name | Ranked by Metric | Metric Value | Operating Index | Operating Alpha | Operating Rank | Bonus Multiple | Peer Universe | Number of Peers |
|
| Admiral | Delta Operating Income | 1.90% | -0.60% | 2.40% | 67% | 1.3 | Car Insurance | 112 | |
| Alliance | Delta Operating Income | 0.40% | 0.10% | 0.30% | 71% | 1.4 | Investment Service | 188 | |
| AMEC | Delta EBITDA | -0.30% | 0.30% | -0.60% | 45% | 0.9 | Construction & Engineering Services | 163 | |
| Anglo American | Delta EBITDA | -24.40% | -6.80% | -17.50% | 25% | 0.5 | Copper / Zinc Mining | 45 | |
| Antofagasta | Delta EBITDA | -59.10% | -22.70% | -36.30% | 29% | 0.6 | Metals & Mining | 110 | |
| Associated British Foods - Grocery | Delta EBIT | 1.40% | 0.70% | 0.70% | 60% | 1.2 | Grocery | 108 | |
| Associated British Foods - Ingredients | Delta EBIT | 0.60% | 0.60% | 0.00% | 50% | 1.0 | Bakery Producers | 115 | |
| Associated British Foods - Retail Store | Delta EBIT | 0.60% | -0.70% | 1.40% | 75% | 1.5 | Retail Store | 86 | |
| Associated British Foods - Sugar & Agriculture | Delta EBIT | 2.00% | 0.80% | 1.20% | 64% | 1.3 | Sugar Industry | 252 | |
| Associated British Foods PLC (Division Average) | Divisional Average | 0.60% | 0.60% | 0.00% | 62% | 1.2 | Divisional Average | n/a | |
| AstraZeneca | Delta EBITDA | 6.20% | 0.20% | 6.00% | 76% | 1.5 | Pharma large only | 113 | |
| Autonomy | Delta EBITDA | 26.50% | 4.30% | 22.20% | 88% | 1.8 | Application Software | 107 | |
| Aviva | Delta Operating Income | 13.00% | -1.30% | 14.30% | 91% | 1.8 | Multi-line Insurer Europe | 53 | |
| BAE Systems | Delta EBITDA | 0.80% | -1.00% | 1.80% | 67% | 1.3 | Aerospace & Defense Service | 132 | |
| Balfour Beatty | Delta EBITDA | 1.00% | 0.30% | 0.60% | 58% | 1.2 | Construction & Engineering Services | 163 | |
| Barclays | Delta Operating Income | 2.70% | -0.10% | 2.80% | 74% | 1.5 | Very Large Diversified Global Banks | 39 | |
| BG Group | Delta EBITDA | -7.30% | -27.20% | 19.80% | 72% | 1.4 | Petroleum & Gas | 155 | |
| BHP Billiton | Delta EBITDA | -10.60% | -22.70% | 12.10% | 59% | 1.2 | Metals & Mining | 110 | |
| BP | Delta EBITDA | -8.40% | -27.20% | 18.80% | 69% | 1.4 | Petroleum & Gas | 155 | |
| British Airways | Delta EBITDA | -7.50% | -1.00% | -6.40% | 24% | 0.5 | Airline | 63 | |
| British American Tobacco | Delta EBIT | 5.00% | 0.50% | 4.50% | 67% | 1.3 | Tobacoo | 31 | |
| British Land Company | Delta Operating Income | -0.20% | 0.00% | -0.30% | 47% | 0.9 | NonResidential Property Investment | 92 | |
| British Sky Broadcasting | Delta EBITDA | 6.20% | -1.90% | 8.00% | 83% | 1.7 | Television Channel Providers | 134 | |
| BT Group | Delta EBITDA | -4.40% | -0.80% | -3.60% | 29% | 0.6 | Telecommunications | 98 | |
| Bunzl Public | Delta EBITDA | 0.30% | -0.10% | 0.40% | 56% | 1.1 | Industrial Supplies | 50 | |
| Cable & Wireless | Delta EBITDA | 5.70% | 0.60% | 5.10% | 85% | 1.7 | Telecommunication & Internet | 96 | |
| Cadbury Schweppes | Delta EBITDA | -1.50% | 0.50% | -2.00% | 32% | 0.6 | Chocolate & Confectionery | 156 | |
| Cairn Energy | Delta EBIT | -70.40% | -30.30% | -40.10% | 30% | 0.6 | Petroleum & Gas | 155 | |
| Capita | Delta EBITDA | 1.70% | -0.60% | 2.30% | 68% | 1.4 | Management Consulting Service | 70 | |
| Carnival | Delta EBITDA | 2.00% | -2.10% | 4.10% | 74% | 1.5 | Leisure Travel | 109 | |
| Centrica | Delta EBITDA | -0.30% | -0.30% | 0.00% | 51% | 1.0 | Electric | 129 | |
| Diageo | Delta EBITDA | -1.30% | 1.70% | -3.00% | 23% | 0.5 | Distillers | 58 | |
| ENRC | Delta EBITDA | -45.60% | -22.70% | -22.90% | 30% | 0.6 | Metals & Mining | 110 | |
| Experian | Delta EBITDA | 6.70% | 2.40% | 4.20% | 79% | 1.6 | Consumer Service | 85 | |
| F&C | Delta Operating Income | -1.50% | -4.30% | 2.90% | 64% | 1.3 | Asset Management | 106 | |
| Fresnillo | Delta EBITDA | 3.90% | -22.70% | 26.60% | 84% | 1.7 | Metals & Mining | 110 | |
| Friends Provident | Delta Operating Income | 1.30% | -0.80% | 2.10% | 62% | 1.2 | Life Insurance | 131 | |
| G4S | Delta EBITDA | -1.10% | 0.90% | -2.00% | 35% | 0.7 | Security Service | 42 | |
| GlaxoSmithKline | Delta EBITDA | 1.20% | 0.20% | 1.00% | 59% | 1.2 | Pharma large only | 113 | |
| Hammerson | Delta Operating Income | 0.60% | 0.00% | 0.50% | 76% | 1.5 | NonResidential Property Investment | 92 | |
| Home Retail | Delta EBITDA | 0.10% | 0.20% | -0.10% | 48% | 1.0 | Merchandise Retailing | 100 | |
| ICAP | Delta Operating Income | -0.60% | -3.40% | 2.70% | 65% | 1.3 | Broker Services | 113 | |
| Imperial Tobacco | Delta EBITDA | 9.00% | 0.30% | 8.70% | 71% | 1.4 | Tobacoo | 31 | |
| Inmarsat | Delta EBITDA | 7.10% | -0.10% | 7.20% | 85% | 1.7 | Internet Telephony / DSL Provider | 130 | |
| Intercontinental Hotels | Delta EBITDA | -4.80% | -6.90% | 2.10% | 55% | 1.1 | Hotels | 107 | |
| International Power | Delta EBITDA | 3.10% | 0.50% | 2.60% | 67% | 1.3 | Energy & Clean & Europe | 66 | |
| Intertek | Delta EBITDA | 7.30% | 0.10% | 7.30% | 87% | 1.7 | Testing/Inspection/Verification | 123 | |
| Invensys | Delta EBITDA | -1.40% | -4.40% | 3.00% | 58% | 1.2 | System Solutions | 126 | |
| Johnson Matthey | Divisional Average | -2.50% | -7.00% | 4.50% | 73% | 1.5 | Divisional Average | n/a | |
| Johnson Matthey - Environmental Technologies | Delta EBIT | -2.50% | -7.00% | 4.50% | 65% | 1.3 | Environmental Technologies | 61 | |
| Johnson Matthey - Fine Chemicals & Catalyst | Delta EBIT | 9.50% | -3.50% | 13.00% | 98% | 2.0 | Fine Chemical | 110 | |
| Johnson Matthey - Precious Metals | Delta EBIT | -1.10% | -2.70% | 1.60% | 57% | 1.1 | Precious Metals & Products | 31 | |
| Kazakhmys | Delta EBITDA | 3.30% | -22.70% | 26.00% | 83% | 1.7 | Metals & Mining | 110 | |
| Kingfisher | Delta EBITDA | -0.20% | -1.00% | 0.70% | 63% | 1.3 | Home Improvement | 139 | |
| Land Securities | Delta Operating Income | -0.40% | -1.40% | 1.00% | 59% | 1.2 | Retail Estate Service | 150 | |
| Legal & General Group | Delta Operating Income | 6.80% | -0.10% | 6.80% | 78% | 1.6 | Insurance | 256 | |
| Liberty International | Delta Operating Income | 0.10% | 0.00% | 0.00% | 52% | 1.0 | NonResidential Property Investment | 92 | |
| Lloyds Banking | Delta Operating Income | -31.40% | -0.10% | -31.40% | 0% | 0.0 | Very Large Diversified Global Banks | 39 | |
| Lonmin | Delta EBITDA | -94.20% | -22.70% | -71.50% | 16% | 0.3 | Metals & Mining | 110 | |
| Morrison | Delta EBITDA | 0.10% | 0.00% | 0.00% | 52% | 1.0 | Retailer | 180 | |
| National Grid | Delta EBITDA | 1.20% | -0.30% | 1.50% | 61% | 1.2 | Electric | 129 | |
| NEXT | Delta EBITDA | -0.70% | -0.90% | 0.20% | 54% | 1.1 | Clothing, Apparel and Shoes | 127 | |
| Old Mutual | Delta Operating Income | -3.00% | -0.80% | -2.20% | 38% | 0.8 | Life Insurance | 131 | |
| Pearson | Delta EBITDA | 1.40% | -6.60% | 8.00% | 74% | 1.5 | Education & Media | 118 | |
| Pennon | Delta EBITDA | 0.30% | -0.40% | 0.70% | 54% | 1.1 | Waste Water Services | 118 | |
| Petrofac | Delta EBITDA | 4.60% | 0.30% | 4.20% | 86% | 1.7 | Construction & Engineering Services | 163 | |
| Prudential | Delta Operating Income | 13.70% | -0.80% | 14.50% | 90% | 1.8 | Life Insurance | 131 | |
| Randgold Resources | Delta EBITDA | 2.60% | 7.40% | -4.80% | 39% | 0.8 | Gold Ore | 153 | |
| RBS | Delta Operating Income | 1.80% | -0.10% | 1.90% | 71% | 1.4 | Very Large Diversified Global Banks | 39 | |
| Reckitt Benckiser | Delta EBIT | 6.10% | 0.60% | 5.50% | 81% | 1.6 | Detergents | 80 | |
| Reed Elsevier | Delta EBIT | 5.30% | -5.60% | 10.90% | 87% | 1.7 | Education & Media | 118 | |
| Rexam | Delta EBITDA | -5.60% | -1.40% | -4.30% | 33% | 0.7 | Glass Packaging | 52 | |
| Rio Tinto | Delta EBITDA | -13.50% | -22.70% | 9.30% | 55% | 1.1 | Metals & Mining | 110 | |
| Rolls Royce | Delta EBITDA | 5.30% | -0.10% | 5.40% | 82% | 1.6 | Aerospace & Defence | 118 | |
| RSA Insurance | Delta Operating Income | -2.30% | -0.80% | -1.50% | 42% | 0.8 | Life Insurance | 131 | |
| SABMiller | Delta EBIT | -0.30% | 1.70% | -1.90% | 33% | 0.7 | Breweries | 110 | |
| Sainsbury | Delta EBIT | 0.20% | 0.00% | 0.20% | 58% | 1.2 | Retailer | 180 | |
| Schroders | Delta Operating Income | -5.30% | -4.30% | -1.00% | 47% | 0.9 | Asset Management | 106 | |
| Scottish and Southern Energy | Delta EBITDA | 4.50% | 0.10% | 4.40% | 74% | 1.5 | Energy Generation /Distribution | 283 | |
| Serco | Delta EBITDA | 2.00% | 0.00% | 2.00% | 77% | 1.5 | Service | 113 | |
| Severn Trent | Delta EBIT | 1.60% | -1.00% | 2.60% | 71% | 1.4 | Waste Water Services | 118 | |
| Shell | Delta EBITDA | -18.90% | -13.10% | -5.80% | 33% | 0.7 | Exploration & Production | 57 | |
| Shire | Delta EBITDA | 12.00% | 0.20% | 11.90% | 92% | 1.8 | Pharma large only | 113 | |
| Smith - Medical | Delta EBIT | 2.50% | -0.80% | 3.30% | 70% | 1.4 | Analytical Equipment | 177 | |
| Smith & Nephew | Delta EBITDA | 6.10% | 0.70% | 5.40% | 71% | 1.4 | Medical Device | 96 | |
| Smiths - Detection | Delta EBIT | -4.70% | -3.40% | -1.40% | 34% | 0.7 | Industrial Conglomerates Large | 83 | |
| Smiths - Specialty Engineered Products | Delta EBIT | 6.40% | -2.20% | 8.60% | 83% | 1.7 | Specialty Engineered Products | 93 | |
| Smiths Group PLC (Division Average) | Divisional Average | 2.50% | -0.80% | 3.30% | 62% | 1.2 | Divisional Average | n/a | |
| Standard Chartered | Delta Operating Income | 3.70% | -0.10% | 3.70% | 77% | 1.5 | Very Large Diversified Global Banks | 39 | |
| Standard Life | Delta Operating Income | -0.90% | -4.30% | 3.40% | 69% | 1.4 | Asset Management | 106 | |
| Tesco | Delta EBITDA | 0.90% | 0.00% | 0.90% | 74% | 1.5 | Retailer | 180 | |
| Tui Travel | Delta EBIT | 7.80% | -3.50% | 11.30% | 84% | 1.7 | Tourism / Container Shipping | 278 | |
| Tullow Oil | Delta EBITDA | -48.70% | -27.20% | -21.50% | 40% | 0.8 | Petroleum & Gas | 155 | |
| United Utilities | Delta EBITDA | 0.70% | -0.40% | 1.10% | 58% | 1.2 | Waste Water Services | 118 | |
| Vedanta Resources | Delta EBITDA | -7.60% | -22.70% | 15.10% | 68% | 1.4 | Metals & Mining | 110 | |
| Vodafone | Delta EBITDA | 10.10% | 1.40% | 8.70% | 85% | 1.7 | Internet / Telephone Communication | 254 | |
| Whitbread | Delta EBITDA | 2.40% | -0.50% | 2.90% | 85% | 1.7 | Food Service | 104 | |
| WPP | Delta EBITDA | 0.00% | -3.80% | 3.80% | 72% | 1.4 | Advertising & Media | 86 | |
| Xstrata | Delta EBITDA | -22.90% | -22.70% | -0.10% | 49% | 1.0 | Metals & Mining | 110 |
The bonus multiple in the table is the multiplier by which individual target bonuses (typically expected bonuses or average historic bonuses) are multiplied to calculate the deserved indexed bonus for 2009.
IV. Notes
Obermatt has analyzed 100 FTSE companies.
Excluded are the following companies due to missing data:
- Compass Group
- London Stock Exchange Group
- Sage
- Thomas Cook Group
- Marks & Spencer
- Unilever
- Wolseley
- 3i
Excluded because Peer Universe definition in progress:
- MAN
Excluded because Organic profit growth difficult to establish:
- HSBC
Excluded is the following company due to unclear acquisition impacts:
- COBHAM
The following companies are adjusted from fiscal year to calendar year:
- British Airways
- Diageo
- BHP Billiton
- British Sky Broadcasting
- BT Group
- TUI Travel
The following companies are included in the Bonus Index with a fiscal half year from April to September (instead of January to June):
- Imperial Tobacco
- Experian
- Home Retail
- ICAP
- Cable & Wireless
- Vodafone
- Scottish & Southern Energy
- Land & Security
- Invensys
- National Grid
- Pennon
- Johnson Matthey
- Associated British Foods
- Lonmin
- Land Securities
- Sainsbury
- Vedanta Resources
V. General Public License
The intellectual property of this report belongs to Obermatt Inc., Zurich, Switzerland (www.obermatt.com). The content of this report including its graphs and tables may be used, copied and distributed provided it is free of charge to the end user and quoted as follows:
© www.obermatt.com or alternatively: Source: www.obermatt.com
Public quotes under the general public license are kindly requested to be notified to office@obermatt.com or +41 (43) 344 88 22.
VI. About Obermatt Inc.
Obermatt is an international financial research company focused on indexing corporate operating performance to measure rank and compare key financial ratios standardized and independent of external factors.
Obermatt helps corporations, private equity firms and investors add value for their shareholders and to their portfolios through products that make innovative use of indexed performance measurement. The company is employee owned and is headquartered in Zurich, Switzerland.
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