1.

Investment projects relate to strategic investments including [Solvency II].

1.

Other comprises estate agencies and housing related business conducted through our regulated mortgage network and business unit costs of £3m (2009: £3m) allocated to the Risk business. In July 2009, an insurance business transfer of Nationwide Life business was made to Legal & General Assurance Society Limited ([Society]). Operating profit associated with the business was included in Other prior to the transfer; post transfer operating profit is recorded in Protection.

1.

In 2010, project and development costs primarily relate to investment in the Group protection policy administration systems.

2.

The current tax credit principally relates to the utilisation of brought forward tax losses.

1.

Mortality/morbidity includes the release of £43m relating to reserving benefits within individual protection. This was offset by a £59m strengthening of the mortality assumptions within the annuity business.

2.

The negative expense assumption reflects a change in reserving basis for custodian fees of £11m.

3.

Other reflects the benefit from inflation modelling enhancement on deferred annuity business.

1.

The 2010 Household combined operating ratio reflects the impact of two periods of severe cold weather, which resulted in an additional £30m of weather related claims. If these events are excluded, the underlying combined ratio is 97%.

1.

Insured business (previously reported as Non profit Savings) includes non profit investment bonds and pensions (including SIPPs), Nationwide Life Savings business and International (Ireland). The Nationwide Life Savings business and the International (Ireland) business were previously reported in Other. Prior period comparatives have been amended.

2.

With-profits business operating profit is the shareholders’ share of total with-profits bonuses.

3.

Savings investments (previously reported as Retail investments) operating profit includes retail and institutional unit trusts, Suffolk Life and business unit costs allocated to the Savings segment of £1m (2009: £3m). The Institutional unit trust business was previously reported in the Investment management segment. Prior period comparatives have been amended. The impact has been to reduce Savings investments 2009 operating profit by £5m.

1.

In 2009, project and development costs related principally to continued investment in internal and other customer facing systems.

2.

The current tax credit principally relates to the utilisation of brought forward tax losses.

1.

In 2010, Other assumption changes includes £12m from the recognition of the benefit of tax exempt UK dividend income.

1.

In 2009, Other includes the elimination of £55m of sterling reserves following the adoption of PS06/14.

1.

Other non-pension includes institutional segregated mandates, private equity and property (both in the UK and overseas). The increase has been driven by an increase in the non-pension segregated mandates.

2.

Investment management operating profit no longer includes institutional unit trusts which are now included within the Savings segment. Prior period comparatives have been amended. The impact has been to increase Investment management 2009 operating profit by £5m.

1.

The reduction in the Netherlands' profit was driven by tougher trading conditions and a reduction in interest margins. The 2009 result had benefited from volatile bond markets which have since started to normalise.

2.

Other includes our joint venture operations in Egypt, the Gulf, India, and business unit costs of £5m (2009: £4m) allocated to the International segment.

3.

In 2010, the International division paid £44m (2009: £8m) of dividends to the Group.

1.

The longer term expected investment return of £187m (2009: £191m) reflects an average return of 5.8% (2009: 6.4%) on the average balance of invested assets of £3.2bn (2009: £3.0bn) held within Group capital and financing calculated on a monthly basis. The invested assets held within Group capital and financing amounted to £3.3bn (2009: £2.8bn).

2.

Interest expense excludes interest on non recourse financing (see Note 35).

1.

In 2010, Risk business investment variance reflects the positive experience of £180m, partly offset by changes to interest rates and changes to modelling of liability and asset data.

2.

Savings business investment variance includes the difference between IFRS deferred policyholder tax and the amount included within the unit linked life funds.

3.

The International investment variance includes a £28m (2009: £18m) benefit from the US Capital restructuring programme, which involved replacing the Triple X financing solution with an internal reinsurance structure. The benefit was the result of purchasing the Potomac Trust Capital Class A Money Market Securities (used to fund the Triple X solution) at a discount.

4.

Group capital and financing operating profit incorporates an assumed long term investment return. The asset related investment variance reflects the difference between the assumed return and actual return on Society shareholder capital and the Group's treasury assets.

5.

The Group manages its exposure to interest rate movements on debt issued with a series of interest rate swaps to lock into a fixed funding cost. The Group does not hold an active trading position in such derivative contracts. For contracts which have not been designated within hedge accounting relationships there is resulting short term income statement volatility which in 2010, primarily as a result of a decrease in the relevant long term interest rates, amounted to £(62)m (2009: £23m). In addition, the elimination of Legal & General debt owned by the Group is £(8)m (2009: £6m) and other small items have an impact of £(2)m (2009: £(14)m).

6.

The defined benefit pension scheme investment variance includes the actuarial gains and losses and valuation difference arising on annuity assets held by the defined benefit pension schemes that have been purchased from Legal & General Assurance Society Limited.

1.

Weighted average number of shares.