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Financial Statements

Notes 6-10

6 SEGMENT INFORMATION

The Group’s activities are in one business segment, pharmaceuticals. There are no other significant classes of business, either singularly or in aggregate.

Geographic areas

The tables below show information by geographic area and, for sales and property, plant and equipment, material countries. The figures show the sales, operating profit and profit before tax made by companies located in that area/country, together with segment assets, segment assets acquired, net operating assets and property, plant and equipment owned by the same companies; export sales and the related profit are included in the area/country from which those sales were made.

Sales
2007
$m
2006
$m
2005
$m
UK
External 1,981 1,686 1,388
Intra-Group 6,506 6,123 5,037
8,487 7,809 6,425
Continental Europe
Belgium 387 344 360
France 1,806 1,641 1,630
Germany 1,164 1,113 1,180
Italy 1,111 1,075 986
Spain 840 723 713
Sweden 985 843 767
Others 2,291 1,929 1,779
Intra-Group 4,123 4,314 3,852
12,707 11,982 11,267
The Americas
Canada 1,145 1,031 976
US 13,404 12,381 10,735
Others 872 673 523
Intra-Group 786 351 413
16,207 14,436 12,647
Asia, Africa & Australasia
Australia 631 481 502
Japan 1,585 1,433 1,453
China 403 224 198
Others 954 898 760
Intra-Group 56 49 41
3,629 3,085 2,954
Continuing operations 41,030 37,312 33,293
Intra-Group eliminations (11,471) (10,837) (9,343)
29,559 26,475 23,950

Export sales from the UK totalled $7,546m 31 December 2007 (2006 $7,012m, 2005 $5,716m). In the US, sales to three wholesalers accounted for approximately 82% of US sales (2006 three wholesalers accounted for approximately 80%, 2005 three wholesalers accounted for approximately 80%).

Intra-Group pricing is determined on an arm’s length basis.

Operating profit Profit before tax
Profit from 2007
$m
2006
$m
2005
$m
2007
$m
2006
$m
2005
$m
UK 2,060 1,852 1,526 1,828 1,936 1,560
Continental Europe 2,894 3,648 3,073 2,964 3,700 3,095
The Americas 2,734 2,437 1,628 2,781 2,627 1,743
Asia, Africa & Australasia 406 279 275 410 280 269
Continuing operations 8,094 8,216 6,502 7,983 8,543 6,667
Total assets
2007
$m
2006
$m
2005
$m
UK 12,003 13,346 10,694
Continental Europe 7,311 6,937 6,525
The Americas 24,175 6,334 5,686
Asia, Africa & Australasia 2,217 1,950 1,752
Income tax receivable 2,251 1,365 183
Continuing operations 47,957 29,932 24,840
Assets acquired 1 Net operating assets 2
2007
$m
2006
$m
2005
$m
2007
$m
2006
$m
2005
$m
UK 929 2,282 366 5,043 4,977 3,761
Continental Europe 624 440 380 4,972 4,820 4,703
The Americas 17,858 292 224 19,742 2,081 1,930
Asia, Africa & Australasia 48 50 38 1,510 1,270 1,228
Continuing operations 19,459 3,064 1,008 31,267 13,148 11,622

1Included in ‘assets acquired’ are those assets that are expected to be used during more than one period (property, plant and equipment, goodwill and intangible assets).

2Net operating assets exclude short term investments, cash, short term borrowings, loans, retirement benefit obligations and non-operating receivables and payables.

Property, plant and equipment
2007
$m
2006
$m
2005
$m
UK 2,490 2,508 2,276
Sweden 2,204 2,104 1,897
US 1,915 1,172 1,176
Rest of the world 1,689 1,669 1,636
Continuing operations 8,298 7,453 6,985

Geographic markets

The table below shows turnover in each geographic market in which customers are located.

2007
$m
2006
$m
2005
$m
UK 1,003 850 757
Continental Europe 9,138 8,053 7,706
The Americas 15,459 14,213 12,327
Asia, Africa & Australasia 3,959 3,359 3,160
Continuing operations 29,559 26,475 23,950
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