EXHIBIT 12.2
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
HALF HALF
YEAR YEAR YEAR YEAR YEAR YEAR YEAR
1989 1990 1991 1992 1993 1993 1994
(Pounds) (Pounds) (Pounds) (Pounds) (Pounds)# (Pounds)# (Pounds)
-------- -------- -------- -------- --------- --------- --------
US GAAP
EARNINGS
Income from ordinary
activities before
taxation: UK GAAP...... 617 354 531 102 633 362 351
Adjustments to conform
with US GAAP:
Pension expense....... -19 -11 -23 -9 -33 -25 -25
Post Retirement
Benefits............. -5 -3 1
Purchase accounting
adjustments (goodwill
and intangibles)..... -40 -53 -42 -70 -48 -15 -10
Disposal of over the
counter
pharmaceuticals
business in the US... -210 210 -8
Other................. -6 6 7 1
---- --- --- --- --- --- ---
Income from ordinary
activities before
taxation: US GAAP...... 348 500 460 29 554 311 318
Adjustment to bring
associated undertakings
onto income received
basis.................. -1 -4 -2 -1 -2
Fixed Charges........... 329 281 300 271 163 105 45
---- --- --- --- --- --- ---
676 777 758 299 717 414 363
---- --- --- --- --- --- ---
FIXED CHARGES
Interest payable on long
term debt.............. 10 10 10 6 21 3 20
Interest payable on
short term borrowings
and other financing
costs.................. 28 23 31 25 30 13 20
Interest payable on
amounts due to the ICI
Group.................. 280 236 249 234 105 87 1
Interest element of
operating lease
charges................ 11 12 10 6 7 2 4
---- --- --- --- --- --- ---
329 281 300 271 163 105 45
---- --- --- --- --- --- ---
Ratio................... 2.1 2.8 2.5 1.1 4.4 3.9 8.1
# Restated for change in accounting policy. (UITF Abstract 6 "Accounting for
post-retirement benefits other than pensions" was adopted on January 1,
1994.)