Notes to the financial statements | Note 2

Turnover represents net sales to customers, excluding value added tax and other revenue and income from franchisees.

Cost of sales is calculated as the weighted average cost of inventory, including distribution costs incurred in bringing the inventory to the retail locations, net of rebate income and settlement discounts.

In the manufacturing divisions, cost of sales is inclusive of depreciation and employee costs as these are directly related to the cost of manufacture of inventories.

Cash comprises cash on hand and deposits held on call with banks. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Shares in Italtile Limited held by the entities and trusts controlled by the Group.