Blueprint
 
FORM 6-K
 
 
 
SECURITIES AND EXCHANGE COMMISSION

 
Washington D.C. 20549
 
 
 
Report of Foreign Issuer
 
 
 
Pursuant to Rule 13a-16 or 15d-16 of

 
the Securities Exchange Act of 1934 
 
 
 
For period ending 11 April 2017 
 
GlaxoSmithKline plc
 
(Name of registrant)

 
980 Great West Road, Brentford, Middlesex, TW8 9GS
 
(Address of principal executive offices)
 
 
 
Indicate by check mark whether the registrant files or
 
will file annual reports under cover Form 20-F or Form 40-F

 
 
 
 
 
Form 20-F x     Form 40-F

 
 
 
--

 
 
 
Indicate by check mark whether the registrant by furnishing the
 
information contained in this Form is also thereby furnishing the
 
information to the Commission pursuant to Rule 12g3-2(b) under the
 
Securities Exchange Act of 1934.

 
 
 
 
 
 
 
Yes      No x
 
 
 
 
 
11 April 2017, London, U.K.
 
GlaxoSmithKline plc
Change to financial reporting framework
 
 
 
GSK keeps its financial reporting framework under regular review to ensure that it remains current and in line with both the latest regulatory requirements and developing best practice within the Pharmaceutical industry. As a result of its latest review, GSK will be making the following change to its financial reporting from Q1 2017.
 
 
Core results will be renamed Adjusted results and will include 'ordinary course' legal charges
 
Treatment and reporting of legal charges
From Q1 2017, only Significant legal charges and expenses will be excluded in order to present Adjusted results. All other legal charges and expenses will be included in Adjusted results. Significant legal charges and expenses are those arising from the settlement of litigation or a government investigation that are not in the normal course and materially larger than more regularly occurring individual matters. They also include certain major legacy legal matters. Any new Significant legal matters excluded in order to present Adjusted results will be disclosed at the time.
 
Revised Adjusted results
The tables below set out revised reconciliations of Total to Adjusted results, the Adjusted profit and the segment profits for the quarters of 2016 and full year 2015 on the basis that the change described above had taken effect in those years. The impact of this change would have been to reduce the amount of legal charges excluded in arriving at the Adjusted pre-tax profit by £100 million in 2016 and £70 million in 2015.
 
Ongoing legal charges and expenses for the full year 2017 are expected to be at broadly similar levels to 2016 and 2015, and so this change is not expected to affect the Group's previously announced guidance for 2017 or the Group's outlook for the five-year period 2016-2020, provided to investors in May 2015.
 
Historic Adjusted results will be revised for this change to ensure comparability of future Adjusted results with prior periods. An Excel version of this data is available on www.gsk.com.
 
Presentation of Total and Adjusted results
GSK will continue to present Total results before Adjusted results and provide a reconciliation between the two. Charges and expenses arising from Significant legal matters will be aggregated into this reconciliation and reported in a new column, 'Divestments, Significant legal charges and other items'.
 
The Remuneration Committee will consider the impact of this change on outstanding and future incentive awards for senior executives, to ensure that performance continues to be assessed on a fair basis.
 
Adjusted results will now exclude the following items and their tax effects:
 
●            amortisation and impairment of intangible assets (excluding computer software) and goodwill;
●            major restructuring costs, including those costs following material acquisitions;
●            transaction-related accounting adjustments for significant acquisitions;
●            Significant legal charges (net of insurance recoveries) and expenses on the settlement of litigation and government investigations, and
●            other items, including disposals of associates, products and businesses, and other operating income other than royalty income.
 
 
 
 
 
 
Analyst/Investor enquiries:
Sarah Elton-Farr
+44 (0) 20 8047 5194
(London)
 
Gary Davies
+44 (0) 20 8047 5503
(London)
 
James Dodwell
+44 (0) 20 8047 2406
(London)
 
Sarah Webster
+44 (0) 20 8047 0246
(London)
 
Tom Curry
+1 215 751 5419
(Philadelphia)
 
Jeff McLaughlin
+1 215 751 7002
(Philadelphia)
 
 
This Announcement does not constitute statutory accounts of the Group within the meaning of sections 434(3) and 435(3) of the Companies Act 2006. The information for 2015 and 2016 has been derived from the full Group accounts published in the Annual Reports 2015 and 2016.
 
CER growth
In order to illustrate underlying performance, it is the Group's practice to discuss its results in terms of constant exchange rate (CER) growth. This represents growth calculated as if the exchange rates used to determine the results of overseas companies in Sterling had remained unchanged from those used in the comparative period.
 
 
Assumptions related to 2017 guidance and 2016-2020 outlook
In outlining the expectations for 2017 and the five-year period 2016-2020, the Group has made certain assumptions about the healthcare sector, the different markets in which the Group operates and the delivery of revenues and financial benefits from its current portfolio, pipeline and restructuring programmes.
 
For the Group specifically, over the period to 2020 GSK expects further declines in sales of Seretide/Advair. The introduction of a generic alternative to Advair in the US has been factored into the Group's assessment of its future performance.  The Group assumes no premature loss of exclusivity for other key products over the period. The Group's expectation of at least £6 billion of revenues per annum on a CER basis by 2020 from products launched since 2013 includes contributions from the current pipeline asset Shingrix.  This target is now expected to be met up to two years earlier. The Group also expects volume demand for its products to increase, particularly in Emerging Markets.
 
The assumptions for the Group's revenue and earnings expectations assume no material interruptions to supply of the Group's products and no material mergers, acquisitions, disposals, litigation costs or share repurchases for the Company; and no change in the Group's shareholdings in ViiV Healthcare or Consumer Healthcare. They also assume no material changes in the macro-economic and healthcare environment.
 
The Group's expectations assume successful delivery of the Group's integration and restructuring plans over the period 2016-2020. Material costs for investment in new product launches and R&D have been factored into the expectations given.  The expectations are given on a constant currency basis and assume no material change to the Group's effective tax rate.
 
Cautionary statement regarding forward-looking statements
The Group's reports filed with or furnished to the US Securities and Exchange Commission (SEC), including this document and written information released, or oral statements made, to the public in the future by or on behalf of the Group, may contain forward-looking statements. Forward-looking statements give the Group's current expectations or forecasts of future events. An investor can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as 'anticipate', 'estimate', 'expect', 'intend', 'will', 'project', 'plan', 'believe' and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. In particular, these include statements relating to future actions, prospective products or product approvals, future performance or results of current and anticipated products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, and financial results. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure and Transparency Rules of the Financial Conduct Authority), the Group undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The reader should, however, consult any additional disclosures that the Group may make in any documents that it publishes and/or files with the SEC. All readers, wherever located, should take note of these disclosures. Accordingly, no assurance can be given that any particular expectation will be met and shareholders and investors are cautioned not to place undue reliance on the forward-looking statements.
Forward-looking statements are subject to assumptions, inherent risks and uncertainties, many of which relate to factors that are beyond the Group's control or precise estimate. The Group cautions investors that a number of important factors, including those in this document, could cause actual results to differ materially from those expressed or implied in any forward-looking statement. Such factors include, but are not limited to, those discussed under 'Principal risks and uncertainties' on pages 253-262 of the GSK 2016 Annual Report. Any forward-looking statements made by or on behalf of the Group speak only as of the date they are made and are based upon the knowledge of and information available to the Directors on the date of this report.
 
 
 
 
 
 
 
 
Registered in England & Wales:
No. 3888792
 
Registered Office:
980 Great West Road
Brentford, Middlesex
TW8 9GS
 
 
 
 
Reconciliations between Total and Adjusted profit
 
The revised adjustments that reconcile Total operating profit, profit after tax and earnings per share to Adjusted results are as follows:
 
 
 
2016
 
Q4 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating
profit
£m
 
Profit
after tax
£m
 
Earnings
per share
p
 
Operating
profit
£m
 
Profit
after tax
£m
 
Earnings
per share
p
 
 
 
 
 
 
 
 
 
 
 
 
Total results
2,598 
 
1,062 
 
18.8 
 
595 
 
317 
 
5.3 
 
 
 
 
 
 
 
 
 
 
 
 
   Intangible asset amortisation
588 
 
458 
 
9.4 
 
144 
 
117 
 
2.4 
   Intangible asset impairment
20 
 
15 
 
0.3 
 
29 
 
21 
 
0.4 
   Major restructuring costs
970 
 
757 
 
15.6 
 
397 
 
296 
 
6.1 
   Legal costs*
62 
 
59 
 
1.2 
 
12 
 
12 
 
0.3 
   Transaction-related items
3,919 
 
3,480 
 
61.6 
 
862 
 
716 
 
11.6 
   Divestments and other*
(486)
 
(305)
 
(6.3)
 
(12)
 
(27)
 
(0.6)
 
 
 
 
 
 
 
 
 
 
 
 
 
5,073 
 
4,464 
 
81.8 
 
1,432 
 
1,135 
 
20.2 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted results
7,671 
 
5,526 
 
100.6 
 
2,027 
 
1,452 
 
25.5 
 
 
 
 
 
 
 
 
 
 
 
 
Previously reported core results
7,771 
 
5,615 
 
102.4 
 
2,062 
 
1,483 
 
26.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 9 months 2016
 
Q3 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating
profit
£m
 
Profit
after tax
£m
 
Earnings
per share
p
 
Operating
profit
£m
 
Profit
after tax
£m
 
Earnings
per share
p
 
 
 
 
 
 
 
 
 
 
 
 
Total results
2,003 
 
745 
 
13.5 
 
1,431 
 
885 
 
16.6 
 
 
 
 
 
 
 
 
 
 
 
 
   Intangible asset amortisation
444 
 
341 
 
7.0 
 
165 
 
121 
 
2.5 
   Intangible asset impairment
(9)
 
(6)
 
(0.1)
 
(9)
 
(6)
 
(0.1)
   Major restructuring costs
573 
 
461 
 
9.4 
 
151 
 
121 
 
2.4 
   Legal costs*
50 
 
47 
 
1.0 
 
46 
 
43 
 
1.0 
   Transaction-related items
3,057 
 
2,764 
 
50.0 
 
799 
 
722 
 
13.2 
   Divestments and other*
(474)
 
(278)
 
(5.7)
 
(285)
 
(189)
 
(3.9)
 
 
 
 
 
 
 
 
 
 
 
 
 
3,641 
 
3,329 
 
61.6 
 
867 
 
812 
 
15.1 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted results
5,644 
 
4,074 
 
75.1 
 
2,298 
 
1,697 
 
31.7 
 
 
 
 
 
 
 
 
 
 
 
 
Previously reported core results
5,709 
 
4,132 
 
76.3 
 
2,319 
 
1,714 
 
32.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 6 months 2016
 
Q2 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating
profit
£m
 
Profit
after tax
£m
 
Earnings
per share
p
 
Operating
profit
£m
 
Profit
after tax
£m
 
Earnings
per share
p
 
 
 
 
 
 
 
 
 
 
 
 
Total results
572 
 
(140)
 
(3.2)
 
(151)
 
(492)
 
(9.0)
 
 
 
 
 
 
 
 
 
 
 
 
   Intangible asset amortisation
279 
 
220 
 
4.6 
 
135 
 
105 
 
2.2 
   Intangible asset impairment
- 
 
- 
 
- 
 
- 
 
- 
 
- 
   Major restructuring costs
422 
 
340 
 
7.0 
 
234 
 
179 
 
3.7 
   Legal costs*
4 
 
4 
 
0.1 
 
13 
 
14 
 
0.2 
   Transaction-related items
2,258 
 
2,042 
 
36.8 
 
1,798 
 
1,629 
 
29.9 
   Divestments and other*
(189)
 
(89)
 
(1.8)
 
(207)
 
(131)
 
(2.7)
 
 
 
 
 
 
 
 
 
 
 
 
 
2,774 
 
2,517 
 
46.7 
 
1,973 
 
1,796 
 
33.3 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted results
3,346 
 
2,377 
 
43.5 
 
1,822 
 
1,304 
 
24.3 
 
 
 
 
 
 
 
 
 
 
 
 
Previously reported core results
3,390 
 
2,418 
 
44.3 
 
1,831 
 
1,312 
 
24.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 3 months 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating
profit
£m
 
Profit
after tax
£m
 
Earnings
per share
p
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total results
723 
 
352 
 
5.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Intangible asset amortisation
144 
 
115 
 
2.4 
 
 
 
 
 
 
   Intangible asset impairment
- 
 
- 
 
- 
 
 
 
 
 
 
   Major restructuring costs
188 
 
161 
 
3.3 
 
 
 
 
 
 
   Legal costs*
(9)
 
(10)
 
(0.2)
 
 
 
 
 
 
   Transaction-related items
460 
 
413 
 
6.9 
 
 
 
 
 
 
   Divestments and other*
18 
 
42 
 
0.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
801 
 
721 
 
13.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted results
1,524 
 
1,073 
 
19.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Previously reported core results
1,559 
 
1,106 
 
19.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating
profit
£m
 
Profit
after tax
£m
 
Earnings
per share
p
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total results
10,322 
 
8,372 
 
174.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Intangible asset amortisation
563 
 
402 
 
8.3 
 
 
 
 
 
 
   Intangible asset impairment
206 
 
156 
 
3.2 
 
 
 
 
 
 
   Major restructuring costs
1,891 
 
1,455 
 
30.1 
 
 
 
 
 
 
   Legal costs*
151 
 
147 
 
3.0 
 
 
 
 
 
 
   Transaction-related items
2,238 
 
1,886 
 
28.8 
 
 
 
 
 
 
   Divestments and other*
(9,712)
 
(8,373)
 
(173.1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(4,663) 
 
(4,327)
 
(99.7) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted results
5,659 
 
4,045 
 
74.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Previously reported core results
5,729 
 
4,098 
 
75.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*Going forward, charges arising from Significant legal matters will be aggregated into 'Divestments and other', which will become 'Divestments, Significant legal charges and other items', in the Total results to Adjusted results reconciliation.       
 
 
 
 
Adjusted operating profit and margin
 
 
 
Adjusted operating profit and earnings per share
 
 
2016
 
Q4 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
£m
 
% of
turnover
 
Growth
CER%
 
£m
 
% of
turnover
 
Reported
growth
CER%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Turnover
27,889 
 
100 
 
6
 
7,586 
 
100 
 
3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
(8,351)
 
(29.9)
 
5
 
(2,195)
 
(28.9)
 
(2)
 
Selling, general and administration
(8,797)
 
(31.6)
 
2
 
(2,464)
 
(32.5)
 
(1)
 
Research and development
(3,468)
 
(12.4)
 
3
 
(1,017)
 
(13.4)
 
6 
 
Royalty income
398 
 
1.4 
 
16
 
117 
 
1.5 
 
22 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating profit
7,671 
 
27.5 
 
14
 
2,027 
 
26.7 
 
15 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted profit before tax
7,024 
 
 
 
16
 
1,858 
 
 
 
18 
 
Adjusted profit after tax
5,526 
 
 
 
13
 
1,452 
 
 
 
10 
 
Adjusted profit attributable to   shareholders
4,889 
 
 
 
12
 
1,240 
 
 
 
9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted earnings per share
100.6p 
 
 
 
11
 
25.5p 
 
 
 
9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating profit by business
 
 
2016
 
Q4 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
£m
 
% of
turnover
 
Growth
CER%
 
£m
 
% of
turnover
 
Reported
growth
CER%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pharmaceuticals
7,951 
 
49.4 
 
6 
 
2,338 
 
51.1 
 
14
 
Pharmaceuticals R&D
(2,488)
 
 
 
6 
 
(741)
 
 
 
14
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Pharmaceuticals
5,463 
 
33.9 
 
6 
 
1,597 
 
34.9 
 
14
 
Vaccines
1,454 
 
31.7 
 
38 
 
284 
 
25.0 
 
41
 
Consumer Healthcare
1,116 
 
15.5 
 
42 
 
274 
 
14.6 
 
5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8,033 
 
28.8 
 
16 
 
2,155 
 
28.4 
 
16
 
Corporate & other unallocated costs
(362)
 
 
 
 
 
(128)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating profit
7,671 
 
27.5 
 
14 
 
2,027 
 
26.7 
 
15
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Previously reported Pharmaceuticals operating profit
7,979 
 
49.5 
 
6 
 
2,347 
 
51.3 
 
14
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Previously reported Corporate & other unallocated costs
(290)
 
 
 
 
 
(102)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating profit and margin
 
 
 
Adjusted operating profit and earnings per share
 
 
9 months 2016
 
Q3 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
£m
 
% of
turnover
 
Growth
CER%
 
£m
 
% of
turnover
 
Reported
growth
CER%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Turnover
20,303 
 
100 
 
7
 
7,542 
 
100 
 
8
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
(6,156)
 
(30.3)
 
7
 
(2,289)
 
(30.4)
 
6
 
Selling, general and administration
(6,333)
 
(31.2)
 
3
 
(2,186)
 
(28.9)
 
5
 
Research and development
(2,451)
 
(12.1)
 
2
 
(876)
 
(11.6)
 
8
 
Royalty income
281 
 
1.4 
 
13
 
107 
 
1.4 
 
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating profit
5,644 
 
27.8 
 
14
 
2,298 
 
30.5 
 
12
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted profit before tax
5,166 
 
 
 
16
 
2,144 
 
 
 
14
 
Adjusted profit after tax
4,074 
 
 
 
14
 
1,697 
 
 
 
13
 
Adjusted profit attributable to   shareholders
3,649 
 
 
 
13
 
1,540 
 
 
 
13
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted earnings per share
75.1p 
 
 
 
12
 
31.7p 
 
 
 
12
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating profit by business
 
 
 
9 months 2016
 
Q3 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
£m
 
% of
turnover
 
Growth
CER%
 
£m
 
% of
turnover
 
Reported
growth
CER%
 
 
 
 
 
 
 
 
 
 
 
 
Pharmaceuticals
5,613 
 
48.7 
 
4 
 
2,002 
 
49.3 
 
4 
Pharmaceuticals R&D
(1,747)
 
 
 
3 
 
(617)
 
 
 
11 
 
 
 
 
 
 
 
 
 
 
 
 
Total Pharmaceuticals
3,866 
 
33.5 
 
4 
 
1,385 
 
34.1 
 
1 
Vaccines
1,170 
 
33.9 
 
37 
 
647 
 
40.1 
 
30 
Consumer Healthcare
842 
 
15.8 
 
56 
 
301 
 
16.1 
 
28 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,878 
 
29.0 
 
16 
 
2,333 
 
30.9 
 
12 
Corporate & other unallocated costs
(234)
 
 
 
 
 
(35)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating profit
5,644 
 
27.8 
 
14 
 
2,298 
 
30.5 
 
12 
 
 
 
 
 
 
 
 
 
 
 
 
Previously reported Pharmaceuticals operating profit
5,632 
 
48.9 
 
4 
 
2,001 
 
49.3 
 
4
 
 
 
 
 
 
 
 
 
 
 
 
Previously reported Corporate & other unallocated costs
(188)
 
 
 
 
 
(13)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating profit and margin
 
 
 
Adjusted operating profit and earnings per share
 
 
 
6 months 2016
 
Q2 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
£m
 
% of
turnover
 
Growth
CER%
 
£m
 
% of
turnover
 
Reported
growth
CER%
 
 
 
 
 
 
 
 
 
 
 
 
Turnover
12,761 
 
100 
 
6
 
6,532 
 
100 
 
4 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
(3,867)
 
(30.3)
 
8
 
(1,931)
 
(29.6)
 
4 
Selling, general and administration
(4,147)
 
(32.6)
 
3
 
(2,062)
 
(31.5)
 
(3)
Research and development
(1,575)
 
(12.3)
 
(1)
 
(800)
 
(12.2)
 
4 
Royalty income
174 
 
1.4 
 
22
 
83 
 
1.2 
 
31 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating profit
3,346 
 
26.2 
 
14
 
1,822 
 
27.9 
 
16 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted profit before tax
3,022 
 
 
 
17
 
1,657 
 
 
 
21 
Adjusted profit after tax
2,377 
 
 
 
16
 
1,304 
 
 
 
19 
Adjusted profit attributable to   shareholders
2,109 
 
 
 
13
 
1,183 
 
 
 
19 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted earnings per share
43.5p 
 
 
 
12
 
24.3p 
 
 
 
18 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating profit by business
 
 
 
6 months 2016
 
Q2 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
£m
 
% of
turnover
 
Growth
CER%
 
£m
 
% of
turnover
 
Reported
growth
CER%
 
 
 
 
 
 
 
 
 
 
 
 
Pharmaceuticals
3,611 
 
48.4 
 
4 
 
1,928 
 
49.7 
 
5
Pharmaceuticals R&D
(1,130)
 
 
 
(1)
 
(583)
 
 
 
9
 
 
 
 
 
 
 
 
 
 
 
 
Total Pharmaceuticals
2,481 
 
33.2 
 
6 
 
1,345 
 
34.6 
 
4
Vaccines
523 
 
28.4 
 
47 
 
270 
 
28.1 
 
39
Consumer Healthcare
541 
 
15.7 
 
76 
 
238 
 
14.1 
 
>100
 
 
 
 
 
 
 
 
 
 
 
 
 
3,545 
 
27.8 
 
18 
 
1,853 
 
28.4 
 
16
Corporate & other unallocated costs
(199)
 
 
 
 
 
(31)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating profit
3,346 
 
26.2 
 
14 
 
1,822 
 
27.9 
 
16
 
 
 
 
 
 
 
 
 
 
 
 
Previously reported Pharmaceuticals operating profit
3,631 
 
48.6 
 
4 
 
1,931 
 
49.7 
 
5
 
 
 
 
 
 
 
 
 
 
 
 
Previously reported Corporate & other unallocated costs
(175)
 
 
 
 
 
(25)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating profit and margin
 
 
 
Adjusted operating profit and earnings per share
 
 
 
3 months 2016
 
 
 
 
 
 
 
 
 
£m
 
% of
turnover
 
Growth
CER%
 
 
 
 
 
 
 
 
Turnover
6,229 
 
100 
 
8
 
 
 
 
 
 
 
 
Cost of sales
(1,936)
 
(31.1)
 
12
 
Selling, general and administration
(2,085)
 
(33.4)
 
9
 
Research and development
(775)
 
(12.4)
 
(5)
 
Royalty income
91 
 
1.4 
 
16
 
 
 
 
 
 
 
 
Adjusted operating profit
1,524 
 
24.5 
 
12
 
 
 
 
 
 
 
 
Adjusted profit before tax
1,365 
 
 
 
13
 
Adjusted profit after tax
1,073 
 
 
 
12
 
Adjusted profit attributable to   shareholders
926 
 
 
 
6
 
 
 
 
 
 
 
 
Adjusted earnings per share
19.1p 
 
 
 
6
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating profit by business
 
 
 
3 months 2016
 
 
 
 
 
 
 
 
 
£m
 
% of
turnover
 
Growth
CER%
 
 
 
 
 
 
 
 
Pharmaceuticals
1,683 
 
46.9 
 
1 
 
Pharmaceuticals R&D
(547)
 
 
 
(9)
 
 
 
 
 
 
 
 
Total Pharmaceuticals
1,136 
 
31.7 
 
7 
 
Vaccines
253 
 
28.7 
 
56 
 
Consumer Healthcare
303 
 
17.2 
 
59 
 
 
 
 
 
 
 
 
 
1,692 
 
27.2 
 
20 
 
Corporate & other unallocated costs
(168)
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating profit
1,524 
 
24.5 
 
12 
 
 
 
 
 
 
 
 
Previously reported Pharmaceuticals operating profit
1,700 
 
47.4 
 
2 
 
 
 
 
 
 
 
 
Previously reported Corporate & other unallocated costs
(150)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating profit and margin
 
 
 
Adjusted operating profit and earnings per share
 
 
 
 
2015
 
 
 
 
 
 
 
 
 
 
 
£m
 
% of
turnover
 
 
 
 
 
 
 
 
 
Turnover
 
23,923 
 
100 
 
 
 
 
 
 
 
 
 
Cost of sales
 
(7,520)
 
(31.4)
 
 
Selling, general and administration
 
(7,977)
 
(33.3)
 
 
Research and development
 
(3,096)
 
(12.9)
 
 
Royalty income
 
329 
 
1.3 
 
 
 
 
 
 
 
 
 
Adjusted operating profit
 
5,659 
 
23.7 
 
 
 
 
 
 
 
 
 
Adjusted profit before tax
 
5,021 
 
 
 
 
Adjusted profit after tax
 
4,045 
 
 
 
 
Adjusted profit attributable to   shareholders
 
3,605 
 
 
 
 
 
 
 
 
 
 
 
Adjusted earnings per share
 
74.6p 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating profit by business
 
 
 
 
2015
 
 
 
 
 
 
 
 
 
 
 
£m
 
% of
turnover
 
 
 
 
 
 
 
 
 
Pharmaceuticals
 
6,443 
 
45.5 
 
 
Pharmaceuticals R&D
 
(2,168)
 
 
 
 
 
 
 
 
 
 
 
Total Pharmaceuticals
 
4,275 
 
30.2 
 
 
Vaccines
 
964 
 
26.4 
 
 
Consumer Healthcare
 
684 
 
11.3 
 
 
 
 
 
 
 
 
 
 
 
5,923 
 
24.8 
 
 
Corporate & other unallocated costs
 
(264)
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating profit
 
5,659 
 
23.7 
 
 
 
 
 
 
 
 
 
Previously reported Pharmaceuticals operating profit
 
6,466 
 
45.7 
 
 
 
 
 
 
 
 
 
Previously reported Corporate & other unallocated costs
 
(217)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SIGNATURES
 
 
 
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorised.

 
 
GlaxoSmithKline plc
 
(Registrant)
 
 
Date: April 11, 2017 
 
 
 
 
By: VICTORIA WHYTE
 
 
 
Victoria Whyte
 
Authorised Signatory for and on
 
behalf of GlaxoSmithKline plc