Table:
|  | 2019 | 2018 |
| --- | --- | --- |
|  | £m | £m |
| Adjusted operating profit | 282.7 | 264.9 |
| Depreciation and amortisation (excluding IFRS16 depreciation) | 34.3 | 32.9 |
| Cash payments to pension schemes in excess of charge to P&L | (5.2) | (4.6) |
| Equity settled share plans | 6.2 | 5.7 |
| Working capital changes | (21.4) | (22.5) |
| Cash generation | 296.6 | 276.4 |
Paragraphs:
2 Alternative performance measures continued
Cash generation
Cash generation is one of the Group’s key performance indicators used by the Board to monitor the performance of the Group and measure the successful implementation of our strategy. It is one of three financial measures on which Executive Directors’ variable remuneration is based.
Cash generation is adjusted operating profit after adding back depreciation and amortisation (excluding IFRS 16 depreciation), less cash payments to pension schemes in excess of the charge to operating profit, equity settled share plans and working capital changes.
Question:
How is cash generation calculated?
Answer: adjusted operating profit after adding back depreciation and amortisation (excluding IFRS 16 depreciation), less cash payments to pension schemes in excess of the charge to operating profit, equity settled share plans and working capital changes