Consolidated Income Statement

For the year ended 31st March

	Notes	2005 € m	2004 € m
Sales	1	3 717	3 375
Cost of sales		(1 325)	(1 283)
Gross profit		2 392	2 092
Net operating expenses	2	(1 887)	(1 796)
Operating profit		505	296
Exceptional item	5	81	-
Profit before net investment income		586	296
Net investment income	6	2	6
Profit before taxation		588	302
Taxation	7	(92)	(64)
Profit after taxation		496	238
Minority interests		(2)	-
Share of results of associated undertaking	8	491	82
Net profit		985	320

Earnings per unit	9	€	€
Earnings per unit on a reported basis - basic		1.798	0.582
Earnings per unit on a reported basis - fully diluted		1.775	0.578

A summary of net profit, adjusted to exclude the effects of goodwill amortisation and exceptional items, is set out below:


	Notes	2005 € m	2004 € m
Net profit as reported		985	320
Goodwill amortisation in respect of associated undertaking	8	222	196
Exceptional item reported by Group	5	(81)	-
Exceptional items reported by associated undertaking	8	(245)	144
Net profit on an adjusted basis		881	660
Earnings per unit	9	€	€
Earnings per unit on an adjusted basis - basic		1.608	1.200
Earnings per unit on an adjusted basis - fully diluted		1.588	1.193

The above summary of adjusted profit is supplementary to the requirements of Swiss generally accepted accounting principles.