GLAXOSMITHKLINE PLC
PROFIT AND LOSS ACCOUNT
Three months ended 31st March 2003
Merger, restructuring
and disposal of
businesses
Business performance Statutory
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2003 2002 Growth 2003 2002 2003 2002
£m £m CER% £m £m £m £m
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Turnover:
Pharmaceuticals 4,466 4,361 9 - - 4,466 4,361
Consumer Healthcare 756 749 6 - - 756 749
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TURNOVER 5,222 5,110 8 - - 5,222 5,110
Cost of sales (1,019) (1,075) (4) (91) (42) (1,110) (1,117)
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Gross profit 4,203 4,035 11 (91) (42) 4,112 3,993
Selling, general and administration (1,766) (1,770) 5 (10) (117) (1,776) (1,887)
Research and development (630) (650) 1 (4) (16) (634) (666)
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Trading profit:
Pharmaceuticals 1,700 1,521 23 (99) (165) 1,601 1,356
Consumer Healthcare 107 94 23 (6) (10) 101 84
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TRADING PROFIT 1,807 1,615 23 (105) (175) 1,702 1,440
Other operating income/(expense) (20) (5) - - (20) (5)
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Operating profit 1,787 1,610 22 (105) (175) 1,682 1,435
Product divestments - - - 12 - 12
Profits of associates 22 17 - - 22 17
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Profit before interest 1,809 1,627 (105) (163) 1,704 1,464
Net interest payable (35) (34) - - (35) (34)
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PROFIT BEFORE TAXATION 1,774 1,593 22 (105) (163) 1,669 1,430
Taxation (479) (430) 28 50 (451) (380)
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Profit after taxation 1,295 1,163 22 (77) (113) 1,218 1,050
Minority interests (20) (24) - - (20) (24)
Preference share dividends (4) (5) - - (4) (5)
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EARNINGS 1,271 1,134 23 (77) (113) 1,194 1,021
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EARNINGS PER SHARE 21.8p 19.0p 26 20.5p 17.1p
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Diluted earnings per share 20.4p 17.0p
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Weighted average number of shares 5,838 5,981 5,838 5,981
(millions) --- --- --- ---
SUMMARY STATEMENT OF CASH FLOW AND MOVEMENT IN NET DEBT
Three months ended 31st March 2003
Q1 2003 Q1 2002 2002
£m £m £m
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BUSINESS PERFORMANCE OPERATING PROFIT 1,787 1,610 6,583
Depreciation and other non-cash items 163 249 909
Increase in working capital (139) (242) (98)
(Decrease)/increase in net liabilities (61) (15) 530
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1,750 1,602 7,924
Restructuring/integration costs paid (87) (153) (669)
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NET CASH INFLOW FROM OPERATING ACTIVITIES 1,663 1,449 7,255
Dividends received from associates - - 2
Returns on investment and servicing of finance (99) (107) (237)
Taxation paid (490) (209) (1,633)
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FREE CASH FLOW 1,074 1,133 5,387
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Purchase of tangible fixed assets (153) (176) (1,044)
Sale of tangible fixed assets 14 8 59
Purchase of intangible fixed assets (37) (32) (182)
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(176) (200) (1,167)
Product divestments - - (1)
Proceeds from own shares for employee share options 1 27 58
Purchase of equity investments (9) (7) (75)
Sale of equity investments 42 9 65
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Capital expenditure and financial investment (142) (171) (1,120)
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Purchase of businesses - - (21)
Business disposals - - 6
Investment in joint ventures and associates - - (5)
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Acquisitions and disposals - - (20)
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Equity dividends paid (527) (545) (2,327)
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NET CASH INFLOW 405 417 1,920
Issue of ordinary share capital 7 18 56
Purchase of shares for cancellation (241) (504) (2,220)
Net non-cash funds of subsidiary acquired - - (4)
Other financing cash flows 63 (43) 135
Exchange movements 50 (8) (121)
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DECREASE/(INCREASE) IN NET DEBT IN PERIOD 284 (120) (234)
NET DEBT AT BEGINNING OF PERIOD (2,335) (2,101) (2,101)
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NET DEBT AT END OF PERIOD (2,051) (2,221) (2,335)
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BALANCE SHEET
Q1 2003 Q1 2002 2002
£m £m £m
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Goodwill 159 170 171
Intangible fixed assets 1,704 1,664 1,637
Tangible fixed assets 6,695 6,866 6,649
Investments 3,128 3,195 3,121
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FIXED ASSETS 11,686 11,895 11,578
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Equity investments 152 184 161
Stocks 2,165 2,144 2,080
Debtors 6,417 6,248 6,200
Liquid investments 1,327 1,364 1,256
Cash at bank 903 935 1,052
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CURRENT ASSETS 10,964 10,875 10,749
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Loans and overdrafts (1,327) (2,051) (1,551)
Other creditors (7,152) (7,463) (7,257)
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CREDITORS: amounts due within one year (8,479) (9,514) (8,808)
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NET CURRENT ASSETS 2,485 1,361 1,941
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TOTAL ASSETS LESS CURRENT LIABILITIES 14,171 13,256 13,519
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Loans (2,954) (2,469) (3,092)
Other creditors (220) (201) (206)
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CREDITORS: amounts due after one year (3,174) (2,670) (3,298)
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PROVISIONS FOR LIABILITIES AND CHARGES (3,032) (2,414) (2,833)
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NET ASSETS 7,965 8,172 7,388
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Called up share capital 1,500 1,536 1,506
Share premium account 231 187 224
Other reserves 1,911 1,874 1,905
Profit and loss account 3,541 3,741 2,946
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EQUITY SHAREHOLDERS' FUNDS 7,183 7,338 6,581
Non-equity minority interest 570 634 559
Equity minority interests 212 200 248
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CAPITAL EMPLOYED 7,965 8,172 7,388
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