GlaxoSmithKline Annual Report 2010
Business review P08–P57 Governance and remuneration P58–P101 Financial statements P102–P191 Shareholder information P192–P212
Business review 2010 Performance overview Research and development Pipeline summary Products, competition and intellectual property Regulation Manufacturing and supply World market GSK sales performance Segment reviews Responsible business Financial review 2010 Financial position and resources Financial review 2009 Risk factors Governance and remuneration Our Board Our Corporate Executive Team Governance and policy Dialogue with shareholders Internal control framework Committee reports Remuneration policy Director terms and conditions Director and Senior Management remuneration Directors’ interests Directors’ interests in contracts
08 10 12 14 18 19 20 21 22 29 34 41 47 53
Business review This discusses our ﬁnancial and non-ﬁnancial activities, resources, development and performance during 2010 and outlines the factors, including the trends and the principal risks and uncertainties, which are likely to affect future development. Governance and remuneration This discusses our management structures and governance procedures. It also sets out the remuneration policies operated for our Directors and Corporate Executive Team members. Financial statements The ﬁnancial statements provide a summary of the Group’s ﬁnancial performance throughout 2010 and its position as at 31st December 2010. The consolidated ﬁnancial statements are prepared in accordance with IFRS as adopted by the European Union and also IFRS as issued by the International Accounting Standards Board. Shareholder information This includes the full product development pipeline and discusses shareholder return in the form of dividends and share price movements.
58 60 64 69 71 74 84 91 94 96 101
Financial statements Directors’ statement of responsibilities Independent Auditors’ report Financial statements Notes to the ﬁnancial statements Financial statements of GlaxoSmithKline plc prepared under UK GAAP
102 103 104 109 188
Shareholder information Quarterly trend Five year record Product development pipeline Share price and dividends Nature of trading market Annual General Meeting Investor relations and Registrar Taxation information for shareholders Glossary of terms Index
192 200 203 207 208 208 208 210 211 212
Underlying sales growth excludes pandemic products, Avandia and Valtrex. See page 21. CER% represents growth at constant exchange rates. Sterling % or £% represents growth at actual exchange rates. See page 21. The calculation of results before major restructuring is described in Note 1 to the ﬁnancial statements, ‘Presentation of the ﬁnancial statements’.
GSK Annual Report 2010
We exist to improve the quality of human life by enabling people to do more, feel better and live longer. We work by respecting people, maintaining our focus on the patient and consumer whilst operating with both integrity and transparency. We are looking to deliver shareholder value through growth of a diversiﬁed and global business, by delivering more products of value, simplifying our operating model and by running our business responsibly. What follows is our report to shareholders for 2010. Progress we have made in the year can also be seen by visiting our website: www.gsk.com/corporatereporting
Notice regarding limitations on Director Liability under English Law Under the UK Companies Act 2006, a safe harbour limits the liability of Directors in respect of statements in and omissions from the Report of the Directors contained on pages 8 to 101. Under English law the Directors would be liable to the company, but not to any third party, if the Report of the Directors contains errors as a result of recklessness or knowing misstatement or dishonest concealment of a material fact, but would not otherwise be liable. Report of the...