exceptional products
for everyday people
annual report 2003
international plc contents
01 highlights
02 chairman’ s message 
04 this is ssl international
06 chief executive’ s review 
08 operating review 
20 financial review 
24 group board 
26 corporate governance 
28 directors’ report 
29 remuneration report 
35 directors’ responsibilities 
35 independent auditors’ report 
to the members of ssl international 
36 consolidated profit and 
loss account 
37 consolidated and company
balance sheets 
38 consolidated cash flow statement
39 consolidated statement of
t otal recognised gains and losses 
39 reconciliation of movements 
in shareholders’ funds
40 notes to the financial statements
62 five y ear record
62 financial calendar
63 ssl directory
65 company information ssl international plc 
annual report 2003
01
we are committed to maximising shareholder value
from our strong portfolio of healthcare products
we shall continue to build on our skills and heritage 
to exploit the full potential of our global brands and
business strengths
highlights
new technology is behind the recent 
launch of nextgeneration products 
in the key corn and blister category 
of scholl
£m £m
2003 2002
turnover 6239 5924
operating profit 820 541
pretax profit 391 29
basic earnings per share 131p 70p
dividend per share
†
123p 123p
net debt 2920 3079
before exceptional items
† subject to approval of final dividend by shareholders at the agm
a rationalisation of the durex condom 
global portfolio has ensured greater
manufacturing productivity and
enhanced customer service
investment in stateoftheart 
manufacturing facilities continues to
maintain worldclass quality standards
t urnover
£m
£623 9
operating profit

£m
£820 ssl international plc 
annual report 2003
02
chairman’ s message
results
the results for the year show that
three key objectives were achieved
sales recovered as our decision to
cease trade loading was vindicated
costs were reduced in both the
product supply and group overhead
areas increasing preexceptional
operating profit by 52 per cent to
£82 million and significant free cash
flow was generated enabling the
dividend to be maintained and fully
covered for the first time since the
merger with scholl in 1 998
our sales in the year grew five per
cent to £624 million our gross
margin grew to 58 per cent and our
operating margin before exceptional
items achieved our target of over 
1 3 per cent earnings per share 
were 1 31 pence compared 
to a loss of 7 pence last year 
dividend
y our board is recommending 
an unchanged final dividend of 
84p making a total for the year  
also unchanged of 123p the final
dividend will be paid on 4 september
2003 to shareholders on the register
on 8 august 2003
strategic development
during the year  the board completed
a thorough review of the group’ s
operations its strengths and
weaknesses and its opportunities 
for delivering shareholder value
growth in the future on the basis 
of the review we concluded that
shareholder’ s interests would best 
be served by focusing resources on
our consumer healthcare businesses
which includes the durex and scholl
brands and by divesting our medical
business as well as our industrial
gloves business 
ian martin
chairman
03 131
02 70
01 135
basic earnings per share pence
03 123
02 123
01 123
dividend per share pence
we have now completed our second full year 
as a new management team and i am pleased 
to report excellent progress in returning the group 
to financial health and in developing our strategy 
for the future based on the strength of durex 
scholl and our other consumer healthcare brands ssl international plc 
annual report 2003
03
directors
in april andrew slater  who became 
a director in 1999 following the
merger with london international
group resigned from his position 
as managing director of the
european operations andrew 
had been with the group for nearly
21 years and has held a number 
of senior operational roles in the 
uk and overseas his contribution
and energy will be missed and we
wish him well in the future
in may  alain strasser our non
executive director resident in france
resigned from his nonexecutive post
recognising that a recent increase 
in his other international activities
meant that he could no longer give
sufficient time to his duties at ssl
alain’ s experience and counsel was 
of great value to the group and 
he goes with our best wishes 
for future success
outlook
the current year presents the twin
challenges of completing the major
disposals and driving forward the
profitability and growth of our
consumer business this will involve
both highly creative marketing and
selling and major cost reductions in
corporate overheads the new year
has begun satisfactorily and we are
confident that these challenges will
be met successfully  in both the
current year and into the future
ian martin chairman
4 june 2003
chairman’ s message continued
the medical portfolio includes 
regent surgical gloves hibi antiseptic
and the wound management
business collectively amounting 
to £1 82 million in sales in the year 
to 31 march 2003 this divestment
process is now well underway and
has generated a substantial level 
of interest
completion of these disposals will
give management the opportunity 
to focus on the consumer business
here there are encouraging signs
that the increased flow of new
products backed by strong
advertising is yielding results 
greater financial resources resulting
from the divestment will drive 
further development this coupled
with a continuing strong focus 
on cost control will we believe 
lead to significantly enhanced
shareholder value ssl international plc 
annual report 2003
04
this is ssl international
ssl international specialises in premium branded
healthcare products for consumer  community 
and hospital use products are distributed all over 
the world via ssl operations in 35 countries
t urnover by business area
01 consumer healthcare — 60
02 medical — 29
03 marigold — 8
04 other — 3
the transfer of hibi production 
from astrazeneca to ssl ’ s flagship
pharmaceutical factory at peterlee 
is now complete
simplified durex packaging worldwide 
has ensured instant consumer recognition
across the globe
customer service has been enhanced 
with a new user website for advice 
on glove performance in industrial
situations
medical division
the medical division includes 
regent biogel surgical gloves 
hibi both global brands and the 
uk wound management business 
new product development for
surgical gloves has focused on the
growing synthetic market segment
healthcare workers now wear gloves
for prolonged periods and the risk 
for some users of allergic reaction 
to natural rubber latex has been
known for a number of years ssl
launched biogel skinsense pi in
march of this year  this new glove 
is made from the synthetic material
polyisoprene and addresses the risk
of an allergic reaction by providing 
a nonlatex alternative to healthcare
workers with a known or suspected
allergy to natural rubber latex with
the same characteristics of strength
and sensitivity  
manufacture of hibi was transferred
to the pharmaceutical facility at
peterlee england from astrazeneca
during the course of the year  new
distinctive product packaging 
for hibi has been launched and
marketing initiatives to exploit 
new markets have commenced
marigold gloves
the marigold brand includes 
two distinct glove types marigold
industrial gloves which offers a
comprehensive product range
suitable for all types of requirements
and marigold housegloves
consumer healthcare
durex and scholl are the core 
global brands within the consumer
healthcare division both brands
enjoy strong market positions 
and combined represent 48 per cent
of group turnover in the year  new
product development and innovative
marketing have contributed to 
the development of these brands 
which is covered in more detail in 
the operating review
the otc portfolio consists of a wide
range of uk products including oral
analgesics eg syndol headlice
treatment eg full marks mousse
indigestion remedies eg remegel
and cough and cold treatments 
eg meltus in addition to this 
the sauber range of deodorants 
and hosiery and the mister baby 
range of baby products are sold
primarily in italy  
01
02
03
04 ssl international plc 
annual report 2003
05
asia pacific
the asia pacific division led by 
steve eastwood managing director 
is primarily consumer healthcare
focused across a wide geographical
area including the key markets 
of japan south east asia hong 
kong and australasia t urnover 
of the division represents 1 1 per cent 
of group sales and continues to show
solid growth in the core durex and
scholl brands 
americas
the divisional head office for 
the americas division is located 
in atlanta usa and is led by stuart
heap managing director  the division
represents 18 per cent of group sales
and is the group’ s largest market 
for surgical gloves in addition to 
the significant medical business 
the divisional team manages the
durex brand across the region and
the silipos polymer gel manufacturing
and commercial operations which 
are based in niagara falls usa
europe
the european division represents 
71 per cent of group sales and 
is geographically diverse having
operations in 22 countries other
than the uk which is established
within medical markets the division 
is predominantly focused on
consumer healthcare the
management of europe has recently
been placed under the control of
garry watts group finance director
with a strategy to focus on brand
contribution to maximise profitable
growth of the core consumer brands
t urnover by business area
01 consumer healthcare — 82
02 medical — 1 1
03 marigold — 2
04 other — 5
t urnover by business area
01 consumer healthcare — 67
02 medical — 22
03 marigold — 8
04 other — 3
t urnover by business area
01 consumer healthcare —23
02 medical — 70
03 marigold — 7
ssl manufacturing 
joint venture manufacturing 
in the european region there are seven 
manufacturing facilities in the uk
including the new pharmaceutical plant 
at peterlee these facilities manufacture 
a wide range of products from condoms
to scholl flight socks in addition other
manufacturing facilities are in spain which
manufactures condoms and in portugal
which manufactures industrial gloves 
the majority of latex based products 
being condoms surgical gloves and
industrial gloves are manufactured in 
this region at ssl ’ s own facilities and 
at others with joint venture partners
the silipos manufacturing facility is 
based in niagara falls and produces 
a gel which is used within a wide range 
of products including footcare and
prosthetic dressings
this is ssl international continued
01
02
03
01
02
03
04
03
04 01
02 ssl international plc 
annual report 2003
06
chief executive’ s review
a threepronged marketing strategy
is aiming first and foremost 
to capture today’ s youth – 16 –24
yearolds – recruiting new customers
as soon as they become sexually
active condom users retain brand
loyalty as long as the product quality
is exceptional – which is the case with
durex advertising has to appeal to
this group even if it unsettles older
generations novel marketing ideas
plus innovation in the area of
‘pleasureenhancing’ products 
will ensure the brand continues 
to evolve and attract consumers 
to use the brand
the second strand of our approach 
is to explore ways in which durex as 
a brand can be ‘stretched’ into other
related categories for instance our
previous disparate lubricants range 
is being repositioned as durex ‘play’
thirdly  we recognise the social
responsibility durex bears as world
leader in condoms we continue 
to develop an active social marketing
programme in developing countries
helping to eradicate sexually
transmitted diseases unwanted
pregnancies and aids besides 
the immediate support we can give
to such government or charity
sponsored education and health
awareness initiatives longerterm 
it creates awareness of durex in
developing marketplaces
scholl
for scholl there is a significant
opportunity to grow the business
from where we are today  by 
building on the brand’ s heritage 
rooted in dr scholl’ s expertise in 
care of the feet to make the brand
relevant to today’ s consumer needs
as we have made additional
investment in rd we have an 
increasingly healthy new product
development pipeline we have a
number of recent successes with
innovations in the areas of new
plasters for corns and blisters new
footcare implements toiletries and
improvements to our flight socks
range we will reestablish the clear
technological edge and passion for
foot care that initially drove scholl 
to the reputation it enjoys today  
as well as new products we will 
also be working to simplify the
current sometimes confusing 
range of products so that the 
choice of the right scholl product 
is clear and obvious
our medical businesses have
strong brands and talented
people however  we believe
that a choice is necessary and
that on balance the greater
expertise and potential in 
ssl ’ s case lies with the 
consumer business
the scholl and durex brands are
extremely well placed within the
consumer healthcare markets in
which they compete relative to
some other consumer categories 
the family planning and footcare
categories are quite small today 
and require specialist knowledge 
to be successful ssl already has the
leading share of these categories
across our territories as a whole and
in most individual markets we start
from a strong position and by being
focused believe we can deepen our
expertise further and deliver stronger
growth as a result 
durex
the condom category is fraught 
with taboos embarrassment and
innuendo and yet it is ultimately 
a category that is dealing with
incredibly serious issues such as
avoiding unwanted pregnancies 
and helping to avoid the transmission
of some of the most serious diseases
affecting the world today 
brian buchan
chief executive
in march of this year  we announced our intention 
to sell the medical businesses of ssl this will allow us
to refocus the group as a successful global consumer
business a business which includes two of the best
known brands in the world – scholl and durex  ssl international plc 
annual report 2003
07
we see markedly different
development of individual sub
categories within our scholl range 
in different geographic markets
insoles are very well developed 
in the uk deodorants in germany 
shoes in thailand capitalising upon
these differences and working 
to ensure that we bring all areas 
of the business up to bestinclass
levels provides us with plenty 
of scope for growth
while job number one is to develop
our ‘crown jewels’ ssl has the
potential to extend its expertise 
in carefully chosen fields our otc
portfolio will also be developed 
we are exploring new opportunities
within categories in which we excel
such as headlice treatment
analgesics and indigestion remedies
as circumstances allow we will look
to acquisitions to help develop
market share and extend our range
into new markets the sale of the
medical division will free the people
and financial resources needed 
to pursue these opportunities 
more aggressively 
looking beyond our brands 
we have continued to achieve our
groupwide targets in cost saving
our cost base has been reduced 
by £18 million over the course of 
the year  there will inevitably be
further significant reorganisation 
and restructuring ahead as a result 
of refocusing on the consumer
marketplace this will give rise 
to some understandable anxiety
amongst our employees and 
our thanks go to them for all their
undiminished efforts during these
times we are acting to provide
certainty where this can be done 
for example a new management
structure has already been 
announced and rationalisation 
is already underway in some 
other areas
our business systems – particularly 
it – have continued to be streamlined
and enhanced these systems will
ultimately form the basis of sustained
cash management improvement 
in areas such as inventory and 
trade receivables we together 
with peoplesoft have recently
brought online new software
modules in the uk business this
change was needed to start the
process of moving from the large
range of legacy systems the group
has inherited once fully bedded
down our plan over the next two
years is to rollout these new systems
throughout our european markets
we are well on the way to achieving
groupwide worldclass standards 
in environmental and quality
management in our manufacturing
processes we now have 26 of our
sites with iso 9001 registration and
12 with full iso 14001 compliance
t raining and development 
of employees continues at every 
level – creating multiskilled flexible
workforces in the factories and
creative entrepreneurial
management in every geographical
area of our business the sales 
and marketing initiatives around 
the world demonstrate that local
market knowledge and awareness 
of localised cultures is essential
the growth achieved by many of 
our markets in durex and scholl over
the past year plus the undoubted
potential that remains to be exploited
explains our confidence in the future
as a dedicated global consumer
company  ssl is the world authority
on condoms and footcare and 
we intend to exploit our skills and
heritage to the full
brian buchan chief executive
4 june 2003
chief executive’ s review continued
03 704
02 708
01 599
investment in advertising and 
promotion £m
03 130
02 116
01 93
investment in product development £m ssl international plc 
annual report 2003
08
operating review
building on the popularity of 
the new ‘easyon’ range launched 
in 2002 three new products over
the past year were launched based
upon extensive consumer research
the new product trio was developed
to ‘liven up safer sex’ durex
‘performa’ is a condom coated 
on the inside with benzocaine 
a mild anaesthetic to prolong love
making for ‘longerlasting pleasure’
durex ‘sensation’ has raised dots 
for greater stimulation and durex
‘close fit’ is a narrower condom
giving a firmer hold
t argeting the youth market – 
16 – 24yearolds – is a fundamental
element of the current marketing
strategy  recruiting new consumers
at the start of their sexual activity 
another key element is ‘adding fun’
– enhancing pleasure and building
on the ‘play’ aspect of lovemaking
more and more consumers are
moving into the enhanced pleasure
category  buying premium condoms
that offer far more than simple
barrier protection
an increasing amount of investment
is being put into the new product
development pipeline encouraging
innovation and creative flair to
differentiate durex from any other
condom competitor  among the
new products currently being
developed are a range of ‘play’
lubricants designed to revolutionise
the lubricant category – plus a
scintillating range of chocolate
flavoured condoms for added
sensory pleasure
durex marketing and promotion
complementing innovative new
product development the
marketing and promotional support
behind the durex range is highly
creative funfilled and successful 
in building sales and market share 
the ‘sperm character’ television 
and media advertising has won 
a wide variety of awards at uk 
and european level examples 
of localised marketing initiatives
include hong kong and t aiwan
organising celebritybacked durex
‘fun rides ‘sperm men’ characters
making public appearances in new
zealand and durexbranded ‘teen
wear’ merchandise for colleges 
and schools across the americas
durex
creative flair
durex is market leader in branded
condoms worldwide and we intend
to build on our expertise to ensure
durex becomes the ‘number one’
condom in every possible market
around the globe
the success of the ‘perfect 
product portfolio’ programme
which rationalised the global
product range in order to exploit
manufacturing synergies and ensure
brand recognition in every market
has given us renewed flexibility with
which to develop new products
durex sperm characters make striking 
appearances at a huge variety of
promotional events around the world
innovation
innovation is at the heart of every
aspect of our approach to business in
the 21st century – from new product
development to business systems and
market development
— this willingness to challenge
attitudes and procedures has
helped to sharpen our business
efficiency
— innovation in new product
development has played 
a key role in developing 
market share
top
creativity is crucial to the new product
development programme
bottom
wideranging expertise in research 
and development is a major strength 
of the group durex
as global brand leader in condoms
durex is not only consolidating 
its market penetration worldwide 
but also shows excellent potential 
for future development ssl international plc 
annual report 2003
10 operating review continued
making an eyecatching appearance 
at a carnival in china this condom 
character broadens the appeal to 
a younger generation
educating everybody
educating people about safe
responsible sex and the dangers 
of aids and sexually t ransmitted
infections sti’ s is a responsibility
faced by durex in a widespread
education programme global
programmes have been developed
such as the durexcom website 
and local initiatives such as the
‘askdurexcom’ website aimed 
at young people in america in
china where condom advertising 
is restricted a new chinese durex
website is not only providing
important educational information
but is a key element of product
marketing in a fastdeveloping
marketplace
durex social marketing
as the world’ s leading condom
maker  durex accepts its need 
to play a key part in stopping
unwanted pregnancies and
eliminating sexual disease in
developing countriesthe group 
is actively involved in a wide variety
of social marketing programmes
particularly an educational project 
in brazil where it has helped local
boys develop their own brand of
condom longterm such work will
help to raise the level of awareness
of durex and its qualities in
developing marketplaces
durex sex survey
this year’ s global sex survey – 
the seventh to date – was the most
successful ever  providing a wealth
of useful marketing information 
and a global platform for pr and
promotions for the first time 
the survey was carried out online
achieving a record number of 
replies – almost 50000 – from 
22 participating countries
worldwide some countries 
held cybercafe events in order to
encourage response carried out 
in tandem with the relaunch of 
the durexcom website this global
marketing initiative was a triumph
for all concerned the newlook
durex website is one of the largest
of its type in the world now
featuring 49 localised country 
and language variants
top
new packaging for biogel gloves
enhances the range’ s reputation 
for quality 
bottom
computercontrolled pharmaceutical
production meets tight regulatory
guidelines
shareholder v alue
we are committed to maximising
shareholder value – with a clear 
focus on continuous improvement 
of business fundamentals and fulfilling
the potential of our brand portfolio
— t aking cost out of the business is
boosting our operating margins
— marketing investment is driving
business growth for our key brands biogel
now wellestablished as the 
marketleading surgical glove 
biogel continues to evolve 
with pacesetting new product
developments setting global
standards in performance 
and quality  ssl international plc 
annual report 2003
12 operating review continued
the key footcare categories 
of blister and corn have seen the
launch of next generation plaster
technology  the new ‘hydragel’
plasters are transparent and 
discreet to wear  using ‘intelligent’
gel which creates the ideal healing
environment for blisters and softens
skin to aid corn removal providing
superior cushioning protection
scholl hydragel plasters offer
instant pain and pressure relief
in addition reengineered foot 
files offer ergonomic improvements 
in a stylish design for both the 
new scholl callous file and the 
new scholl smoothing file
scholl flight socks
scholl flight socks were a firstto
market launch for ssl developed 
in direct response to consumer
concern regarding the risks of 
deep vein thrombosis dvt 
on long haul flights and the 
need for preventative solutions
launched initially in the uk where 
it enjoyed immediate success the
product has also enjoyed similar
success throughout its global roll
out this year 
building on the success of creating
its own category  the brand now 
has a new generation ‘cottonfeel’
flight sock which was launched 
in march featuring new innovative
fibre technology  giving improved
look and feel with antimicrobial
action to keep feet fresh
the brand is also being extended
with the launch of a new knee
highs range which is specifically
positioned for the female consumer 
available in black and natural 
the new knee highs range
combines the appropriate level 
of compression with the design
features of female hosiery 
the scholl flightt ravel compression
brand is being supported by ssl ’ s
active involvement in a programme
of research and clinical studies into
the cause condition and prevention
of dvt  one of the most significant
studies so far  lonflit 4 concluded
that scholl flight socks reduce the
incidence of dvt and help control
oedema in lowmedium risk
subjects on long haul flights
continued marketing and
promotion of the brand will 
ensure sales growth worldwide 
as more consumers realise the
benefits of the concept
the ‘gelactiv’ range of scholl
footwear continues to win major
new listings in leading retail outlets
around the world australia has
enjoyed particular success recently
with a fashion promotion targeting
summer beachwear 
scholl
scholl innovation
scholl has an unrivalled heritage 
as the foot specialist now the
group is building on the global
brand’ s pedigree in treating foot
problems to develop a new range 
of consumers loyal to the brand 
for everyday footcare – for health
and beauty 
much of the existing scholl 
foot skincare range has been
relaunched three new products
complement the portfolio and
capitalise on the latest consumer
trend for ‘express’ footcare for the
woman in a hurry  scholl’ s launch 
of the ‘express’ lines for feet meets
the growing trend for convenient
‘multitasking’ solutions as seen
with other skincare categories 
the new scholl foot smooth
shower scrub is designed for use 
as part of a daily shower regime
backed by the new scholl express
conditioning foot spray  a light
moisturising lotion to soften the 
skin on the feet the new scholl 
deo compact spray is a handy
sized spray deodorant to target
women ‘on the go’
scholl’ s range of health and beauty 
products for feet is creating new 
business opportunities for the brand
top
scholl’ s popular product sampling
sessions during ladies’ day at 
royal ascot were a great success
bottom
ssl austria organised sponsorship of 
the vienna marathon with the muscle
embrocation product ‘diana’
brand building
creative flair in our marketing 
is going handinhand with a 
fresh impetus in new product
development creating new 
business opportunities in areas 
where we have renowned expertise
— continued investment in
marketing is showing excellent
returns through new sales growth
— our pedigree of research and
development skills is proving its
worth through an exciting new
product development pipeline
across the brands scholl 
building on a heritage of 
brand leadership in caring 
for foot problems scholl 
is creating exciting new 
benchmarks in everyday care 
for healthy  beautiful feet ssl international plc 
annual report 2003
14 operating review continued
organisational
strength
we have a stable and effective
management team with an 
excellent mix of skills and 
expertise for today’ s business 
needs new efficiencies and 
skills have been introduced to
strengthen the global operation
— business systems have been
overhauled to maximise
productivity for future growth
— manufacturing flexibility ensures
cost efficiency and excellent
customer service
building on the reputation of its
cuprofen brand ssl launched 
a new version of the ibuprofen
painkiller  specifically for children
this marks the group’ s entry into
one of the fastest growing otc
sectors – children’ s ibuprofen – 
with the aim of picking up 20 
per cent of the market sector  
a 150ml size was launched in
january  boosting sales still further 
and cuprofen for children has just
been declared the preferred brand
for dispensing by lloyds and moss
pharmacy chains in the uk –
boosting business across 2000
pharmacies on top of the brand’ s
success in retail 
in the headlice category  full marks
mousse is the number one brand
supported by a successful television
advertising campaign with sales 
up 214 per cent yearonyear  
£3 million ahead of its nearest rival 
ssl also has the number two brand
– derbac – plus the natruclear range
to maximise the wetcombing
technique for ongoing detection
this means the group can offer 
a complete headlice detection 
and treatment solution
remegel indigestion remedy and
resolve hangover cure continue 
to lead the way in these categories
supported by consumer advertising
and instore promotions remegel
which saw the successful launch 
of the summer fruit version in 
all major accounts is the only
traditional indigestion product
growing in the market resolve 
won the christmas battle to be 
the bestselling hangover cure 
for the second year running and 
is the fastest growing brand in the
stomach upsethangover market
meltus cough syrup received 
heavy promotion in the uk grocery
trade achieving over 1500 new
distribution points in the country’ s
largest stores as a result 
woodward’ s gripe water continues
to be the world’ s most popular
baby’ s gripe water and is a highly
successful global otc brand recent
examples of innovative promotion
include the far east capitalising 
on a hong kong movie ‘mighty
baby’ with instore promotions
competitions and appearances 
by movie actors
otc
the otc portfolio is being improved
developing new products for
categories where ssl has specialist
expertise and taking advantage of
acquisitions to build critical mass 
and expand overseas markets
particular successes have been 
in categories where ssl excels –
headlice treatment analgesics
indigestion remedies and 
cough syrups
in the painkiller category  ssl 
now has the two fastest growing
analgesic brands in the uk one 
of the strongest otc products on
the market is paramol which was
relaunched last april changing
shape from tablet to capsule to
make it easier to swallow sales 
have continued to grow since
syndol is a significant brand 
which is currently seeing success
following a second round of its
television advertising a pilot
campaign in october saw 
a 20 per cent increase in sales 
a fiveweek national television
campaign in marchapril this
year exceeded all expectations 
with sales in boots peaking at 
400 per cent growth
nationwide television advertising in the 
uk for painkiller syndol has seen sales
increase significantly 
ssl offers a comprehensive headlice 
treatment and prevention product portfolio
t raining programmes ensure best 
practice in management procedure resolve
just one of a growing portfolio 
of uk marketleading otc
medicines resolve continues 
to grow in value backed by 
creative marketing campaigns ssl international plc 
annual report 2003
16 operating review continued
people power
our employees are one of our 
best global assets we are committed
to training and developing individuals
to reach their full potential enabling
them to add value to the business
— factorybased training and
development has created a 
multiskilled workforce to
maximise site productivity 
— investment in management
training continues to create 
new generational skills for 
future business growth
hibi
the integration of hibi manufacturing
into peterlee from astrazeneca 
is now complete after a longer than
expected transition period which
involved regulatory procedures 
to bring the product licences up
todate a new range of distinctive
product packaging has been
launched with the group maximising
every opportunity to promote itself 
as the hand hygiene expert for the
health professional new medical
marketing teams have been
established in many countries
initiatives have included sponsoring
the firstever handwashing seminar 
in hong kong to promote hibiscrub
launching hibi towelettes for 
the health professional working 
in a domestic environment and
developing hibiderm handcream 
for health workers
a new regent antiseptics 
website has been developed 
for health professionals –
wwwregentantispeticscom – 
to inform and educate 
a global audience
wound management
sales of avance wound dressings 
and lyofoam have performed very
well over the past year  sales of
t ubifast – the bandage for wet
wrapping to control atopic eczema –
have also performed well thanks 
to new sizes of bandage and an
intensive marketing programme 
to develop a category that ssl has
made its own 
an exciting new development for
the t ubifast range has been the
recent launch of t ubifast garments –
a range of readytowear clothing
for children to enable parents to
avoid the hassle of trying to keep 
a child still for the time it takes to
wetwrap using bandages the
design concept was developed and
manufactured inhouse at oldham
which has the capability to make an
adult range of garments if required
marigold
the marigold brand comprises
housegloves sold through the
consumer distribution channels
alongside our consumer products
and also a comprehensive range 
of industrial gloves used for
protection of workers against
hazards such as heat and chemicals
regent infection control
biogel surgical gloves
sales of biogel surgical gloves have
continued to develop the european
markets helped by the recent
launch of three new products the
innovations are set to consolidate
the group’ s number one position 
in the global surgical glove
marketplace and have been
developed in direct response 
to market demand
biogel skinsense pi made 
from the latest synthetic material
polyisoprene is said to be ‘the
nearest there is to natural rubber
latex’ ideal for those with a known
or suspected allergy to natural
rubber latex
biogel optifit ‘super sensitive’ 
has a straight cuff for a tighter 
fit developed in response to 
cuff slippage and roll down 
from increased use of synthetic
surgical gowns
the third product is for the uk
market a straightfingered biogel
indicator underglove which is
preferred in the uk to the curved
finger format of the usa and
continental europe
awardwinning website consultancies 
are utilised to develop flagship product 
and service websites
top
ssl peterlee employees are 
experienced in hosting customer visits
bottom
inhouse expertise is nurtured 
and developed full marks
full marks mousse is the flagship
brand in a uk healthcare category
that ssl has made its own – the
treatment of headlice investment in
consumer promotions continues to
grow the brand and the category  ssl international plc 
annual report 2003
18 operating review continued
investment has included new
knitting machines at oldham 
to support the growth of t ubifast
bandages for the wetwrap
treatment of atopic eczema
elsewhere in the uk a new 
forum for uk engineering has 
been established to pool ideas 
and share expertise
commercial expansion
our commercial offices continue 
to develop and exploit new
opportunities ssl new zealand 
has celebrated its first birthday 
growing business for durex scholl
otc and medical a new ssl
business has opened in t aiwan
building on the success of the hong
kong subsidiary to exploit growing
consumer demand ssl poland has
doubled in size with new teams 
of sales and marketing personnel
replacing the old structure of
commission agents and ssl france
has seen great success from a
business reorganisation and
development of new channels 
to meet demand 
customer service
the uk and global customer 
service improvement programmes
have continued apace with notable
successes including reducing 
stock holding to justintime
requirements reducing lead times
and improving efficiencies from
rationalising the distribution
networks and haulage systems
environmental responsibility
all sites within the group are 
now operating to consistent 
worldclass standards on quality 
and environmental issues our 
latest annual environmental report
gives detailed accounts of some 
of the successes over the past 
12 months with local sites taking
ownership of their own
requirements and achievements 
to ensure international standards
are maintained our global
approach has simplified systems 
and procedures and avoids
duplication of effort
manufacturing
the group is committed to
maintaining the highest possible
standards of quality and
environmental responsibility at 
all its manufacturing sites and to
sourcing its manufacturing in order
to achieve maximum productivity
and efficiency 
an ongoing manufacturing review
ensures the best possible sources 
of manufacturing are maintained
providing the flexibility necessary 
to both maintain high standards 
of customer service and support
new product development
recent changes to achieve these
ends have included the closure 
of part of the avanti condom
manufacturing process at
cambridge in england transferring
production to ssl ’ s joint venture
condom manufacturer in india
which has just celebrated a 50 year
partnership with the group some
manufacturing rationalisation 
was also undertaken at oldham 
in england and production of the
indigestion remedy remegel is to be
transferred from the bootle factory –
which is closing – to ssl ’ s stateof
theart pharmaceutical factory in
peterlee which opened last year 
flexible manufacturing facilities 
maintain efficiency and high 
standards of customer service
top
a social marketing programme for
condoms in brazil is helping to reduce
unwanted pregnancies and disease
bottom
reducing latex waste in malaysia 
is a key element of our environmental
responsibility
advanced cleanroom facilities at ssl ’ s 
malaysian surgical glove manufacturing 
sites ensure enviable standards of quality 
and hygiene
socially
responsible
ssl embraces good corporate
governance and social awareness
taking seriously its responsibilities 
as an ethical global business
— we are committed to sharing 
our knowledge with likeminded
organisations in order to enhance
an individual’ s everyday life
— we set high standards of
governance across the
organisation exceeding 
minimum requirements 
wherever possible scholl flight socks
an excellent example of how 
to create a new market category 
scholl flight socks have been a
phenomenal business success 
to date and the product range 
is ripe for global development ssl international plc 
annual report 2003
20
the scholl footwear business
enjoyed a successful springsummer
2003 season with second half
footwear sales growing at 
51 per cent over the previous year
and at 31 per cent for the year as 
a whole the footwear category 
is a complicated business that is
beginning to benefit from improved
focus in range selection and
rationalisation of the supply chain
the market offers a significant
opportunity for expansion if these
initiatives can be maintained in
future seasons
the other consumer businesses
declined overall by 24 per cent to
£809 million gains of 28 per cent
in the uk otc business to £402
million and of six per cent in the
scholl medical compression business
to £11 million were outweighed 
by declines elsewhere notably 
in italy where the combination 
of strong competition and a weak
pharmacy market particularly in the
second half caused erosion of our
sauber and mister baby ranges
financial review
overall results
ssl ’ s results for the year ended 
31 march 2003 are laid out 
on page 36 sales of £6239 million
were achieved during the year
2002 £5924 million generating 
a preexceptional operating profit 
of £820 million 2002 £541 million 
the operating margin before
exceptional items was 1 3 1 per cent
of sales compared to 91 per cent
last year  profit before tax was £39 1
million a £42 million improvement
against last year and earnings per
share was 1 3 1 pence against a loss
of 70 pence last year  free cash flow
of £39 million 2002 £7 million
was generated and net debt at the
year end was £292 million 2002
£308 million 
sales
ssl ’ s sales for the year amounted 
to £6239 million five per cent 
ahead of last year’ s reported total 
after adjusting for the effects of
disposals currency fluctuations 
and customer inventory loading
underlying sales are estimated 
to be at the same level as last year 
gains in the consumer division
were offset by a decline in our hibi
marigold and other businesses 
our surgeons’ gloves and wound
management businesses were 
flat overall
within the consumer division
overall sales grew by three per cent 
on an underlying basis family
planning sales totalled £1438
million 64 per cent ahead of 
last year mainly as the result 
of successful new product
introductions under our durex
brand in european markets 
we have programmes in place to
leverage further the strength and
appeal of the durex brand to the
younger age group so as to support
growth in the future
scholl footcare sales grew by 
27 per cent as successful new
product introductions improved
marketing and the development 
of emerging markets outweighed
declines in our two principal
markets the uk and italy  
our continuing programme 
of category reinvigoration and 
new product development is 
aimed at accelerating the growth
rate across the group
garry watts
finance director
sales table
reported reported underlying underlying 
310303 310302 310302 growth
£m £m £m 
family planning 1438 1274 1352 64
footcare 779 728 758 27
footwear 747 710 724 31
other consumer 809 781 829 24
consumer 3773 3493 3663 30
surgical gloves 1013 845 996 17
hibi 227 261 257 116
other medical 578 522 593 25
continence care – 115 – –
medical 1818 1743 1846 15
other 648 688 725 106
t otal 6239 5924 6234 01
 reclassified for changes in business structure ssl international plc 
annual report 2003
21
the group’ s consumer business
continues to enjoy favourable
market dynamics in its principal
operating territories of uk italy 
france and for durex the usa
both durex and scholl compete 
in markets that are growing over
all and in which in almost all cases 
ssl is maintaining or growing 
its market share it is the group’ s
intention to continue to invest 
in new product development
innovative advertising and
marketing support programmes 
all aimed at delivering both top 
line growth and improved brand
contribution
sales in the medical division
amounted to £182 million
compared with £174 million 
last year  although the growth 
of 46 per cent is the result of 
the net effect of adjustments 
to the comparative number for
currency  disposals and customer
loading underlying medical sales
declined by an estimated 15 per
cent primarily due to the lower 
hibi sales resulting from the licence
transfer delays experienced in 
the first part of the year  we expect
hibi sales to recover from this low
level as we are once again able to
bid for contracts now that licence
approvals have been gained
surgeons’ glove sales in the 
us were flat on an underlying 
basis in the year as inmarket sales
growth of some six per cent arising
from volume gains of 11 per cent
offset by price decline of five per
cent was absorbed by wholesaler
and distributor inventory reductions
driven by healthcare cost
containment measures the
underlying switch from powdered
gloves continues to support our
future growth expectations as does
the successful introduction of our
latest generation of ‘latex free’
gloves this segment continues 
to expand at a rapid rate biogel 
has an estimated 60 per cent 
by value share of the powder 
free latex market and a 36 per cent 
by value share of the synthetic
market gradual price erosion
continues in both sectors but with
the synthetic sector maintaining an
approximate 30 per cent premium
to powderfree surgical gloves
elsewhere in the world surgical
glove sales grew by 32 per cent as
the result of growth in continental
european countries and a stable
market in the uk
the other medical businesses
comprising wound management
and silipos achieved sales of 
£578 million comfortably ahead 
of last year’ s number but
representing a decline of 25 per
cent on an underlying basis after
adjustment for customer inventory
loading the wound management
business continues to generate
good profitability and cash flows
from an extensive range of staple
products supplied to uk and
european hospitals and the silipos
business has benefited this year
from a significant contract with
beauty retail outlets in the us
gross margin
the group’ s gross margin improved
in the year by a pleasing 27
percentage points to 579 per cent
the improvement arose partly as 
the result of the increased sales in
the year  which the group estimates
generates a marginal gross return 
of approximately 80 per cent and
partly as the result of stringent 
cost control measures within the
supply chain we estimate that
approximately £9 million savings
have been generated in this area 
in the year 
market development
expenditure
group market development 
expenditure of £704 million has
been maintained at last year’ s
increased levels in pursuance of the
group’ s stated policy of growing
brand equity values particularly 
in durex and scholl the great
majority of the expense is inmarket
and aimed at directly influencing
consumer offtake as the success 
of this approach becomes
established it is the group’ s
intention to continue to invest 
in this area
brand contribution
the group is developing brand
contribution as a key performance
measure this is defined as gross
margin less advertising and
promotion and variable selling 
costs and is intended as a proxy
measure of brand equity value
which is a principal component 
of the corporate value of ssl 
brand contribution in the year was
£2506 million 16 per cent ahead
of last year and the group aims 
to continue growth ahead of the
rate of sales growth in the future
approximately 40 per cent of brand
contribution was generated by the
medical business and 60 per cent 
by the remainder 
research and development
expenditure
over the last two years the group
has shown a strong commitment 
to developing new products and
bringing them to market in the 
past year  we have introduced new
products across our major brands
including the performa condom
hydragel corn and blister plasters
and polyisoprene surgical gloves
rd expenditure for the year 
was £130 million compared 
to £116 million in 2002
financial review continued ssl international plc 
annual report 2003
22
operating profit
operating profit before exceptional
items amounted to £820 million
compared with £541 million last
year  an increase of 52 per cent
arising from a combination of
increased sales and cost reductions
the operating margin was 131 per
cent compared with 91 per cent
last year 
exceptional costs amounted 
to £20 million comprising the 
£18 million restructuring charge
announced at the beginning of 
the year and £2 million closure 
costs associated with the transfer 
of part of avanti manufacturing 
to india from cambridge as
anticipated this expenditure has
enabled us to eliminate £1 8 million
from our ongoing cost base 
as the group continues with its
efficiency programme and adjusts
its operations to reflect the sale of
the medical businesses it is likely
that further exceptional costs will 
be incurred in the current year 
profit before finance charges 
was £616 million compared 
with £227 million last year 
financing costs 
the net interest charge incurred 
in the year was £225 million 
2002 £256 million which 
is covered 36 times by operating
profit before exceptional items
2002 21 times and 275 
times after exceptional items 
2002 09 times 
taxation
the tax charge of £179 million 
before exceptional items represents
a rate of 30 per cent consistent
with the previous financial year 
exceptional costs generated a 
tax credit of £36 million 2002 
a charge of £16 million
earnings and dividends
profit after tax was £248 million
compared with a loss of £132
million last year which generated
earnings per share of 131 pence
2002 loss of 7 pence the
dividends proposed for the year 
are at the same level as last year  
a 39 pence interim and 84 pence
final which are covered 1 1 times 
by earnings
profit before exceptional items
amounted to £416 million and
generated earning of 22 pence
2002 104 pence which cover 
the dividend 18 times
cash flow and 
investing activities 
during the year  the group
generated an increased free cash
flow ie before payment of dividend
of £39 million compared with 
£7 million in its previous period
operating cash flow being the 
net of earnings before interest 
tax depreciation and amortisation
and working capital movements
amounted to £1042 million 2002
£1197 million capital expenditure
was £182 million 2002 £398
million the cash element of
exceptional items was £164 million
2002 £281 million and interest
and tax payments amounted to
£305 million 2002 £447 million
net working capital at 31 march
2003 was £1299 million compared
with £1279 million previously  it is
made up of receivables £1855
million 2002 £1812 million plus
inventories £1069 million 2002
£1107 million less payables 
£1625 million 2002 £164 million
and overall represents 208 per cent 
of sales an improvement over last
year 216 per cent but still behind
the group’ s stated target of 15 per
cent continued efforts to reduce
further the receivables days
outstanding 108 days versus 
1 12 days last year  are being 
made in pursuit of the target
cash flow after dividend payments
of £23 million was applied to reduce
net indebtedness at 31 march 2003
to £292 million from £308 million at
the previous year end
selling general and
administration sga costs
sga costs for the group
amounted to £1596 million
compared with £1521 million last
year and represented 256 per cent
of sales included in these costs 
are group it and insurance costs
amounting to £162 million in 
the year  £55 million or 51 per cent
ahead of last year  other sga
costs grew by around one per cent
which when compared with an
underlying salary inflation of four
per cent across the group as a
whole demonstrates an underlying
cost saving of some £4 million in 
the year in this category  the group
will continue to focus on efficiency
improvements in the future
particularly following the planned
disposal of the medical businesses
following disposal we estimate 
that approximately £10 million 
of sga costs included in the 
£52 million currently allocated 
to these businesses will not 
transfer as part of the disposal
financial review continued
03 820
02 541
01 1160
operating profit before 
exceptional items £m
03 131
02 91
01 179
operating margin before 
exceptional items 
03 391
02 71
01 309
free cash flow £m ssl international plc 
annual report 2003
23 financial review continued
03 2920
02 3079
01 3809
net debt £m
interest rate exposure
the aim of the boardapproved
policy relating to interest rate risk
management is to reduce the
impact of interest rate fluctuations
on the group’ s net interest expense
to acceptable levels this is achieved
through balancing the ratio of fixed
or hedged debt to those financial
liabilities with floating interest rates
boardapproved instruments
available to hedge this exposure
include interest rate swaps interest
rate options and forward rate
agreements details of the interest
rate analysis are given in note 31
liquidity risk
the primary objective of the group
t reasury policy is to ensure that 
the group is able at all times to
meet its financial commitments as
and when they fall due t o facilitate 
this the group t reasury department 
is responsible for the management 
of cash and liquid resources for 
the whole of the group and
ensures that the group has
sufficient headroom in its undrawn
facilities to meet any reasonable
change in funding requirements 
as detailed in note 31 the group’ s
central undrawn committed
facilities at 31 march 2003
amounted to £342 million 
garry watts finance director
4 june 2003
financial condition
profits retained after dividend
amounted to £15 million a 
£38 1 million improvement on the
previous year  shareholders’ funds 
at 31 march 2003 were £92 million
compared with £88 million at 
31 march 2002 
halfyear performance
sales in the second half of the year
were £315 million compared with
£311 million for the comparative
period operating profit before
exceptional items was £51 million
compared with £41 million sales
and operating profit for the first half
of the year were £309 million and
£31 million respectively 
litigation
in common with most suppliers 
of latex medical gloves the group 
is engaged in litigation in the usa 
in relation to allegations regarding
the development of sensitivity to
natural rubber latex the board has
confidence in both the high quality
of ssl ’ s surgical gloves and the
group’ s defences available against
allegations in recent months 
a number of cases have been 
settled for nominal amounts 
and there have been no new 
case filings recently 
the group is also defendant in a
number of other lawsuits incidental
to its operations and is involved in
investigations by certain regulatory
authorities in aggregate these are
not expected to have a material
adverse financial effect on the
group further details are given 
in note 28
capital structure and 
t reasury policy
financial reporting standard 13
frs 13 requires that certain
disclosures relating to financial
instruments are given in the
financial statements in order to
provide information on the impact
of such instruments on the group’ s
risk profile how this may affect the
group’ s performance and financial
position and how those risks are
being managed the impact of
financial instruments is considered 
in detail in note 31
foreign exchange risk
the nature of the group’ s trading
activities generates transactional
foreign exchange risks these arise
from the sourcing of raw materials
from different countries the
location of group production
facilities throughout the world and
the sale and distribution of finished
goods in many locations the
group’ s foreign exchange policy
requires that all trading related
exposures should be centralised 
in accordance with prescribed
procedures and timetables under
the direction of the group t reasury
function which hedges the major
exposures using forward contracts
and options usually for a period 
of 12 months ssl international plc 
annual report 2003
24
group board
executive directors
brian buchan
chief executive
chief executive since march 2001
previously an officer of procter 
gamble and president of its
feminine care global operations
brian has worked extensively in
europe the far east and north
america age 51
garry watts
group finance director and
managing director europe
group finance director since joining
the company in february 2001
garry also became managing
director for europe in april 2003 
he was previously an executive
director of celltech plc and finance
director of medeva plc garry was 
a member of the ministerial
advisory board of the medicines
control agency until march 2003
and has subsequently been
appointed as a nonexecutive
director of its successor body  
the medicines and healthcare
products regulatory agency  age 46
steven eastwood
group managing director 
asia pacific
joined scholl plc in 1983 having
held senior marketing positions 
in cadburys schweppes and
beechams steven became an
executive director of scholl in 
1995 and was appointed to the 
ssl board in april 2000 age 51
nonexecutive directors
ian martin
nonexecutive chairman
chairman since september 2001 
ian is also chairman of the
nomination committee he is
chairman of hlf insurance holdings
ltd and has held a number of
chairmanships including baxi
group plc and uniq plc and was
group managing director and
deputy chairman of grand
metropolitan plc age 68
eric anstee
nonexecutive director
joined the board in march 2002
eric a chartered accountant 
is chairman of the audit committee
he is chairman of mansell plc and 
a nonexecutive director of severn
t rent plc he is a member of the
icaew and a member of the uitf 
of the accounting standards 
board age 52 ssl international plc 
annual report 2003
25
bernd beetz
nonexecutive director
appointed in march 2001 bernd is
executive director and ceo of coty
inc based in new y ork prior to which
he was president and ceo of
parfums christian dior and before
that a regional vicepresident of
procter  gamble age 52
timothy howden
senior nonexecutive director
appointed a nonexecutive director
of scholl plc in 1994 and of ssl 
in 1998 tim is chairman of the
remuneration committee
previously ceo of albert fisher
europe and md of rank hovis
mcdougall plc he is currently a
nonexecutive director of finning
international inc canada hyperion
insurance group ltd and non
executive chairman of benchmark
dental laboratories ltd and
zwetsloots ltd age 66
peter read
nonexecutive director
appointed in march 2002 he is a
member of the board of the south
east of england development
agency and holds nonexecutive
directorships in celltech group plc
vernalis group plc and innogenetics
sa formerly a senior executive with
hoechst and past president of abpi
age 64
jonathan jowett
company secretary
appointed in june 1999 
qualified as a solicitor in 1989 and
has previously worked for avon
cosmetics and alumasc group plc
age 40
note
all nonexecutive directors sit on 
the audit remuneration and nomination
committees chaired by eric anstee 
tim howden and ian martin respectively 
group board continued ssl international plc 
annual report 2003
26
corporate governance
combined code
listed companies are required to
disclose how they have applied the
principles of section 1 of the combined
code on corporate governance which
is appended to the listing rules of 
the financial services authority the
combined code and whether they
have complied with the combined
code’ s provisions during the year 
the group has complied with the
combined code with exception of 
the provisions relating to directors’
service contracts this report together
with the remuneration report on pages
29 to 34 explain how the group has
complied with the combined code
the board
the board consists of three executive
directors the nonexecutive chairman
and four other nonexecutive directors
1

all of whom are considered independent
of management and free from any
business or other relationship which
could materially interfere with 
the exercise of their independent
judgement following rod sellers’
resignation on 16 july 2002 
tim howden became the senior
independent director biographical
details for all current directors and 
the company secretary are given 
on pages 24 and 25 there is a clear
division of responsibility between 
the chairman who leads the board 
and the chief executive who is
responsible for running the business
board meetings are scheduled for 
every other month and there is a 
formal schedule of matters reserved 
for its’ approval which include setting
strategy annual and interim results
annual budget and treasury policy
major acquisitions disposals capital
expenditure and the monitoring of
operational and financial performance
the board has adopted a code of
practice which governs the calling 
of meetings precirculation of papers
review of committee membership 
and terms of reference 
the mix of skills and experience of the
board ensures that matters are properly
debated and that no one director or
group dominates the board’ s decision
making process nonexecutive
directors are appointed for a specified
term all directors are subject to re
election at the first agm following 
their appointment and at least every
three years thereafter 
the company secretary ensures that
board procedures are followed and 
all directors have access to his advice
and services the company will also
arrange for appropriate training and
induction for new directors from 
time to time updates are provided
covering developments on company
law corporate governance and other
key areas
a procedure exists for directors to take
independent professional advice at the
company’ s expense in the furtherance
of their duties
board committees
the board has established four principal
committees t erms of reference for 
each committee have been agreed 
by the board the composition and 
role of each committee is as follows
the audit committee is chaired by 
eric anstee and comprises all the non
executive directors
1
 the company
secretary is committee secretary 
the chief executive group finance
director head of internal audit and
other senior members of the finance
function are also invited to attend
although the committee meets external
auditors at least once a year without
executives present this committee
ensures that financial information
supplied to shareholders provides a
balanced assessment of the group’ s
position and it reviews the system of
internal control and the effectiveness 
of the external and internal audit
process t o perform its’ function the
committee receives regular reports 
from both internal and external auditors 
the remuneration committee
comprises all the nonexecutive
directors
1
and is chaired by tim howden
it is responsible for determining
contractual terms and remuneration 
for the executive directors and certain
senior executives the group human
resources director attended as
secretary throughout the year 
the chief executive and company
secretary attended by invitation 
the company secretary is now
committee secretary
the remuneration report on pages 29
to 34 provides full details on the group’ s
policy on executive remuneration 
and directors’ packages throughout
the financial year the group complied
with the provisions on the design 
of performancerelated remuneration 
as set out in schedule a of the
combined code
the nomination committee comprises
the chief executive and all the non
executive directors
1
 the committee
advises on board appointments as
necessary and is chaired by ian martin
the risk management committee
rmc is chaired by the director of
group treasury with the head of
internal audit attending as secretary 
it comprises the executive directors 
and selected group and divisional
management the committee considers
strategic risks to which the group may
be exposed and proposes appropriate
mitigation strategies to management 
in addition it receives reports from 
the head of internal audit on the
effectiveness of the risk management 
of process at divisional level the 
audit committee receives a report on
the operational effectiveness of the
rmc and the chairman of the audit
committee has a standing invitation 
to attend meetings
in addition to the above the leadership
t eam which comprises the executive
directors and certain other senior
executives meets on a regular basis and
deals with daytoday management 
of the group including the review 
of monthly financial reports compared
to budget and taking any action 
where necessary
the number of scheduled board
meetings attended by each director
during the year was as follows 
board meetings
attnd non attnd
brian buchan 7 –
garry watts 7 –
steven eastwood 7 –
andrew slater 
resigned 300403 7 –
ian martin 7 –
eric anstee 6 1
bernd beetz 6 1
tim howden 7 –
peter read 7 –
alain strasser
resigned 160503 7 –
rod sellers
resigned 160702 2 –
internal control
the board is responsible for the
maintenance of internal controls and
reviewing its effectiveness this includes
financial operational and compliance
controls together with risk management
the controls are designed to manage
rather than eliminate the risk of failure
to achieve business objectives and can
only provide reasonable and not
absolute assurance against material
misstatement or loss the board has
established a process for internal control
which was in place throughout the
financial year under review and up 
to the date of approval of the annual
report and accounts ssl international plc 
annual report 2003
27
the board reviews the effectiveness 
of the system of internal control at least
annually and is confident that it
complies fully with the internal control
guidance for directors in the combined
code key elements of the review include
— reviewing the updated group and
divisional risk matrices from the
rmc assisted by an ongoing review
of internal controls by the internal
audit function in line with the audit
plan agreed by the audit committee
and group finance director
— ensuring group policies and
procedures are in place for 
all areas considered at risk
— requiring a ‘letter of assurance’
from all statutory business units
within the group stating
compliance with group policies
identification of business risks 
and internal control confirmation
— consideration of reports from
internal and external audit on the
system of internal and material
control weaknesses
— ensuring each business unit
completes an updated control risk
self assessment which are centrally
collated and reviewed and
— assessing the year end reporting
process throughout the group
including visits to selected locations
by the internal audit function 
to assist in year end close and 
issue resolution
corporate social responsibility csr
there is board level responsibility for
csr matters a csr working group 
has been established and reports 
to the leadership t eam
environment a separate environment
report is being sent to shareholders and
is available on the corporate website
health and safety the group is
committed to ensuring employees
operate in a health and safety conscious
environment the group health and
safety department works closely with
management staff and others
ethical a revised ethics policy was issued
in october 2001 and requires staff to
behave ethically to all stakeholders
examples of further progress in the
group’ s relationships with stakeholders
are given in the operating review
going concern
having made appropriate enquiries 
the board is satisfied that the group 
has adequate resources to continue 
in business for the foreseeable future
therefore the going concern basis
continues to be appropriate in preparing
the financial statements
shareholder relations
the board recognises the importance 
of open communications with
institutional and private shareholders
institutional shareholders fund
managers and analysts are briefed 
at presentations and regular meetings
with executive directors in addition 
the board responds continually to 
adhoc requests for information from 
all shareholders the agm provides 
an opportunity for shareholders to 
raise questions with the chairman 
and the board
the main source of information 
for the private investor is the annual
report and accounts further investor
information including copies of
previous annual reports and accounts
press releases analyst presentations
share price performance financial
results and answers to frequently asked
questions are available on the group’ s
website wwwsslinternationalcom
note
1 rod sellers and alain strasser 
who resigned as nonexecutive
directors on 16 july 2002 and 
16 may 2003 respectively were
members of the remuneration
audit and nomination committees
both directors were considered
independent ssl international plc 
annual report 2003
28
directors’ report
directors’ report
the directors present their annual report
and audited financial statements for the
year ended 31 march 2003
activities
the activities of the group are 
the manufacture and distribution 
of consumer healthcare products
medical products household and
industrial gloves
the chairman’ s message chief
executive’ s review and operating and
financial reviews on pages 2 to 23
report in more detail on the group’ s
activities during the year and likely
future developments notably 
the proposed disposals of the 
medical products and industrial 
gloves businesses
results and dividend
the group profit before tax was 
£82 million before exceptional 
items £616 million after exceptional
items an interim dividend of 39p 
per share was paid on 4 march 2003 
the directors recommend a final
dividend of 84p per share which
subject to approval by shareholders 
will be paid on 4 september 2003 
to shareholders on the register on 
8 august 2003 dividends on shares
held by the seton healthcare group
employee share ownership plan and 
the seton healthcare group qualifying
employee share ownership trust have
been waived
board of directors
the directors are listed on pages 24 
and 25 all of them served throughout
the year rod sellers and andrew slater
resigned as directors on 16 july 2002
and 30 april 2003 respectively alain
strasser resigned on 16 may 2003 brian
buchan and bernd beetz will stand for
reelection at the forthcoming annual
general meeting none of the non
executive directors has a service
contract further information about
directors is given in the remuneration
report on pages 29 to 34
share capital
details of shares issued during the year
and outstanding options are given in
note 20 to the financial statements
annual general meeting
the annual general meeting 
will be held at the insurance hall 
20 aldermanbury london ec2v 7hy 
at 1030am on 15 july 2003 
purchase of own shares
the company is authorised to purchase
its own shares in the market although
no such purchases have been made
during the year approval to renew 
this authority for a further year will 
be sought from shareholders at the
2003 agm
major interests
as at 30 may 2003 the company had
been notified of the following interests 
of three per cent or more in the issued
share capital of the company
employees and employment policies
the group’ s employment policies 
reflect its’ belief in recruiting and
developing high calibre employees
diversity in the work place is valued 
and the group strongly believes 
in equality of opportunity for all
employees this ensures that people
with disability are offered the same
opportunities for employment training
and career progression as others
employees the group would make
every effort to continue to employ 
staff who may become disabled while
employed providing appropriate
training and adapting facilities to allow
them to continue working wherever
possible the group has continued 
its programme of tailormade courses 
with insead in paris and manchester
business school in the uk
policies introduced during the previous
financial year such as ‘freetalk’ a 
groupwide communications channel
have encouraged a higher level of
employee involvement 
profitrelated bonus schemes were in
operation during the year for certain
employees and further offers were
made to eligible employees under 
the save as you earn share option 
and global sharesave schemes
creditor payment policy
the group does not follow any specific
external code or standard on payment
practice payments to suppliers are
made in accordance with agreed terms
the company itself had no trade
creditors at 31 march 2003
charitable and political donations
the group made charitable donations
of £01 million 2002 £01million 
no political donations were made
during the year 2002 £nil
auditors
kpmg audit plc has expressed its
willingness to remain in office as auditor
of the company and a resolution
proposing its reappointment will be put
to shareholders at the annual general
meeting after proper consideration
the audit committee is satisfied that
kpmg plc continues to be objective 
and independent of the group
by order of the board
jonathan jowett group secretary
4 june 2003
number of shares  of shares
f m r corp and 
its direct and indirect subsidiaries 27125553 1433
hbos plc 5701544 301
legal  general investment
management limited 6067552 32 ssl international plc 
annual report 2003
29
remuneration report
remuneration report
this report sets out the company’ s
remuneration policy and practice for
executive and nonexecutive directors
for the year ended 31 march 2003 
as determined by the remuneration
committee under power delegated 
to it by the board
it is now a requirement of the companies
act 1985 that certain parts of this report
are audited for the sake of clarity those
sections that have been audited are
marked as ‘audited information’
remuneration committee 
the remuneration committee the
‘committee’ determines remuneration
policies and practice with the aims of
securing the talent that the company
needs to meet its business aims and
encouraging superior performance 
the committee determines the
individual remuneration packages 
of the ‘leadership t eam’ comprising 
of the executive directors and certain
other senior executives
the committee also has oversight 
of the operation of all the company’ s
share and share option plans
the committee’ s overall objective when
carrying out its duties is to balance the
interests of shareholders the company
and its employees
the committee comprises all the non
executive directors of the company
namely
— tim howden – committee chairman
— eric anstee 
— bernd beetz
— ian martin
— dr peter read 
alain strasser was a member of the
committee until he resigned from the
board on 16 may 2003 rod sellers 
was also a committee member until 
his resignation on 16 july 2002 robert
dwyer group hr director served 
as committee secretary throughout 
the year brian buchan group chief
executive and jonathan jowett
company secretary attended 
by invitation jonathan jowett is 
now committee secretary and 
has also assumed responsibility 
for corporate hr
during the year the committee received
advice from the following external
remuneration consultants
— mercer human resource consulting
‘mercer’ – provided advice on
actuarial matters and pay and
pension provision for the leadership
t eam and
— ernst  young llp – provided 
advice on the group’ s employee
share schemes
no other services were provided 
to the company by external advisers 
to the committee
executive directors 
remuneration policy
remuneration policy is designed to
ensure that remuneration packages 
are competitive but not excessive 
by reference to the relevant market 
the committee reviews levels of
compensation against externally
sourced data from independent
consultants in the case of uk directors
the committee refers to data provided
by mercer and comparisons are made
against the ‘ids directors pay report’
published from time to time steve
eastwood’ s compensation is provided 
in aus  and is considered against 
the australian market place for senior
executives taking into account his 
asia pacific responsibilities 
in order to motivate executives to achieve
superior performance the committee
believes that a significant proportion 
of remuneration should be linked to
individual and company performance 
it is the remuneration committee’ s
intention to review remuneration policy
during 2003 to ensure all elements 
align with the revised business strategy
following the planned disposal of the
group’ s medical business
pending the outcome of this review 
the intention of the remuneration
committee for the year to 31 march
2004 is to grant options to certain 
key employees below leadership t eam
level in june no options or l tip interests
will be granted to members of the
leadership t eam until the policy review
is complete and the remuneration
committee has formulated a new 
longterm incentive policy for that group
remuneration constituents
basic salary basic salaries are
determined annually by reference 
to externallysourced data targeting 
a median to upper quartile market 
salary position 
annual bonus plan the committee
agrees annual bonus plan targets for 
the leadership t eam these targets 
have historically been based on the
company’ s budgeted performance 
for the year  specifically the company’ s
earnings per share performance organic
sales growth and working capital 
for the year to 31 march 2004 bonus
plan targets will be based upon a
combination of company divisional for
those executive directors with divisional
responsibility and personal targets
the maximum bonus payment for 
the chief executive is 60 per cent 
of basic salary for other executive
directors the maximum is 50 per cent 
of basic salary which would be paid
upon achieving 105 per cent of targets
for achieving targets a bonus of 35 
per cent of basic salary would be 
paid to the chief executive with 
the executive directors receiving 
30 per cent of basic salary pro rata
amounts would be paid for achieving 
a level of performance between the
maximum and minimum targets
in the event of a change of control 
the remuneration committee retains
absolute discretion as to what if any
bonuses are paid
longt erm incentives historically 
the company has made annual awards 
of both share options through the
executive share option schemes and
performance shares through deferred
bonus share matching within the long
t erm incentive plan ‘ltip’ in order 
to link rewards with real improvements
in longerterm financial performance 
of the company these awards were
also intended to encourage executive
directors to hold a significant amount 
of their remuneration in shares
no changes have been made to the
performance conditions of existing
grants or awards under the schemes
the company’ s historical longterm
incentive arrangements are as follows
ltip the leadership t eam and certain
other senior executives have been
eligible to participate in the ltip  under
the ltip  participants can elect to invest
up to 50 per cent of their annual cash
bonus into company shares ‘deferred
bonus shares’ and a conditional
matching award of company shares
‘performance shares’ is made by 
the company
the deferred bonus shares are held 
in trust for a period of three years 
after which they vest provided that 
the individual remains in employment 
with the company during this deferral
period the participant retains the voting
rights associated with the deferred
bonus shares and the trustees pay over
to the participant any dividends paid 
on those shares deferred bonus shares
are at risk should the individual leave 
the company during the deferral 
period at the discretion of the trustees
in practice deferred bonus shares are
normally released to ‘good leavers’
while participants who leave the
company other than for ‘good leaver’
reasons usually forfeit their deferred
bonus shares performance shares 
are normally forfeited in all cases
the committee determine the matching
level for the award of performance
shares on an annual basis their most
recent policy has been to match
deferrals on a onetoone basis the
performance shares vest at the end of
the threeyear deferral period subject 
to the satisfaction of a performance
condition performance shares awarded
in 2000 will not vest as the criteria have
not been achieved for the 2002 award
performance shares vest if the increase
in the earnings per share of ssl exceed
inflation plus two per cent per annum
over the threeyear deferral period
executive share option schemes
grants of options over shares with a
face value on the date of grant equal 
to one times basic salary were made 
to executive directors and other senior
executives during 2002 ‘standard
options’ following the amendment 
of the rules of the unapproved executive
share option scheme at the 2002 agm 
to incentivise the executive directors
additional grants of options over shares
with a face value equal to one times
salary were made and a lesser level 
to certain members of the leadership
t eam ‘additional options’
t o receive an issue of standard options 
in subsequent years the participant 
will be expected to retain 30 per cent 
of shares acquired on exercise
the executive’ s ability to exercise
standard options is subject to the
company meeting a performance
target see below with additional
options subject to more stringent
performance conditions
performance conditions were as follows
for awards made during 2002
for standard options the option may
only be exercised if over a period of
three years commencing on 1 april
2002 the percentage growth in
normalised earnings per share of 
the company exceeds the percentage
growth in the retail price index by 
at least an average of two per cent per
annum in respect of options granted 
in july 2002 and three per cent per
annum for options granted in
november 2002 these conditions 
may be waived by the directors in
exceptional circumstances if the
participant ceases to be in employment
if conditions have not been met in 
full after three years there will be no
retesting and the options will lapse ssl international plc 
annual report 2003
30 remuneration report continued
for additional options the option 
is subject to performance conditions 
that must be satisfied over initially a
threeyear period although this period
may be extended up to five years 
the performance conditions are 
in two parts
— the percentage growth in
normalised earnings per share 
of the company exceeds the
percentage growth in the retail 
price index by at least an average 
of three per cent per annum and
— the company’ s t otal shareholder
return shall when ranked against
the t otal shareholder return of
constituent companies of the
ftse250 have reached at least 
the sixth decile and thereafter 
as shown in the table above
limited retesting is allowed for a
further two years after the initial three
years to allow the executive to benefit
from driving up shareholder value 
the retesting is levered and executives 
will need to perform exceptionally 
well in years four or five to increase the
percentage vesting the options will
lapse unless exercised within seven years
on a change of financial control of the
company the performance conditions
attached to standard options fall away
and the options vest in full for additional
options the treatment depends on the
timing of the change of control relative
to the award of the options if the
change of control happens within 18
months of the award of the additional
options those options will not vest 
if the change of control happens more
than 18 months after the date of award
then the vesting of additional options 
is based on performance up to the date 
of the change of control against the
performance conditions attached to 
the option with the proportion vesting
calculated on a pro rata basis
on termination the vesting of 
longterm incentive interests is at 
the discretion of the remuneration
committee normal practice is as
follows unvested share options 
will lapse on the day that the director
ceases to be employed by the company 
‘good leavers’ will be entitled to
exercise mature options for a period 
of 12 months from date of leaving 
other benefits
the company provides competitive 
noncash benefits to executive directors
these include use of a company car 
or payment of a car allowance medical
insurance life assurance premiums and
permanent health insurance
the executive directors are also eligible
to take part in the company’ s all
employee share plans specifically 
the company’ s uk sharesave scheme
us stock purchase plan if a director
worked in the usa and global 
share savings plan in the case of 
steve eastwood 
director date of contract unexpired term notice period
brian buchan 1 march 2001 one year rolling reduced to 
one year with 
effect from 
12 march 2003
✝ garry watts 5 february 2001 one year rolling reduced to 
one year with 
effect from 
7 february 2003
✝ steve eastwood 1 april 2000 t wo year rolling t wo years
✝ in the event of a change of financial control the notice periods for brian buchan 
and garry watts will be increased to two years from the date of the change 
of control such increase remaining in effect for one year
vesting conditions for additional options
ranking of company tsr percentage of option which
vs ftse250 become exercisable
below sixth decile 0
sixth decile 50
between sixth decile and eighth decile prorata between 50 and 
100 on a straight line basis
eighth decile and above 100
pension
the company operates a contractedin
defined contribution scheme the ‘ssl
uk pension scheme’ for uk employees
for executive directors company policy
is to contribute 25 per cent of basic
salary which is subject to income tax
and inland revenue limits and the
individual pays five per cent of basic
salary the company investigated
introducing funded unapproved
retirement benefits schemes ‘furbs’
but none of the executives sought 
to implement such schemes instead 
they receive a cash payment in lieu 
of contribution to the furbs
brian buchan’ s pension arrangements
were finalised during the year  backdated
contributions were made on his behalf
to the ssl uk pension scheme and 
a cash payment was made in lieu of
contributions to the furbs
garry watts received a payment to 
a personal pension plan and a cash
payment in lieu of contributions 
to the furbs
andrew slater who resigned as a
director on 30 april 2003 in addition 
to being a member of the ssl uk
pension scheme is a member of the
london international group uk pension
scheme a defined benefit scheme 
in february 2001 this scheme was
closed to new entrants and the accrual
of future years’ benefits was linked 
to future salary growth based on
pensionable service to the date of
closure andrew retains preserved
benefits in this scheme
steve eastwood’ s pension contributions
are paid into a personal superannuation
scheme in australia
service contracts
it is intended that future appointments
to the board will generally be terminable
on one year’ s notice other than where 
a longer term may be required
the executive directors are subject 
to notice periods as described below ssl international plc 
annual report 2003
31
if the employment of brian buchan 
or garry watts is terminated following 
a change of financial control or if as a
result of such change their status and
duties materially diminish each will 
be entitled to receive the equivalent 
of 15 times the value of basic salary
bonus based on the average paid over
the preceding three years pension
benefits and any other benefits in kind
if the employment of an executive
director is terminated by the company
for any other reason the committee’ s
current policy is to calculate a termination
payment based upon an annualised
entitlement levels of mitigation 
would be determined by reference 
to the individual circumstances of the
executive director appropriate external
advice would also be obtained 
andrew slater resigned as a director 
on 30 april 2003 and left the company
on 31 may 2003 he had a contract 
of service with a twoyear notice period
a settlement agreement is currently
being negotiated but it is estimated
that andrew can receive a payment 
up to a maximum of £811800 which 
is equivalent to 24 months’ salary and
benefits under his service agreement
£50000 of this payment is being paid 
as consideration for andrew entering
into restrictive covenants of the
remainder 50 per cent is payable 
to andrew on leaving the company
although part of this payment would 
be paid into the company’ s pension
scheme to secure additional benefits 
for andrew under the proposed
settlement agreement andrew 
has a duty to mitigate his loss
accordingly entitlement to any further
payment from the company is only
payable after the first anniversary 
of his departure from the company 
and any remuneration he receives 
from subsequent employment will 
be setoff against it
nonexecutive directors’ fees
ian martin was appointed as non
executive chairman on 1 september
2001 for a term of three years 
this is terminable by 12 months notice
from the company and six months
notice from the chairman his letter 
of appointment entitles him to fees
totalling £175000 pa a company car
and fuel and the services of a driver 
to which he contributes 50 per cent 
of the cost
other nonexecutive directors 
receive a basic fee of £25000 with an
additional amount of £3000 awarded
to committee chairmen 
full details of all remuneration
shareholdings and interests in the
company’ s share option schemes 
are shown on pages 32 to 34
performance graph
the graph shows the company’ s total
shareholder return ‘tsr’ performance
compared with that of the ftse350
index the ftse350 index was selected
as an appropriate comparator index
because it is a broad equity market 
index of which ssl is a constituent
remuneration report continued
ftse350
index ssl
t otal shareholder return over last five years
140
120
100
80
60
40
20
0
mar 98 mar 99 mar 00 mar 01 mar 02 mar 03 ssl international plc 
annual report 2003
32 remuneration report continued
directors’ remuneration 
audited information
salaries annual 2003 2002
and fees bonuses benefits total total
note £’000 £’000 £’000 £’000 £’000 
current directors
nonexecutive chairman
i a martin 175 – 50 225 124
175 – 50 225 124
executive
b j buchan 3 439 52 228 719 499
s eastwood 155 45 19 219 189
a slater 265 7 19 291 363
g watts 4 291 28 72 391 401
1150 132 338 1620 1452
nonexecutive
e e anstee chairman of the audit committee 28 – – 28 –
b beetz 25–– 25 23
t  s howden chairman of the remuneration committee 28 – – 28 34
p  read 25–– 25 –
r h sellers to 160702 9–– 9 25
a strasser 25–– 25 23
140–– 140 105
former directors 5––– – 963
total 1465 132 388 1985 2644
notes
1 remuneration shown above only relates to the period for which each director served during the year
2 benefits include company cars or car allowance driver services fuel medical insurance and life assurance premiums
3 brian buchan’ s benefits include £189997 received as a payment in lieu of pension benefits covering the period from when he joined the company to 31 march 2003
4 garry watts’ benefits include £48650 2002 £61440 received as a payment in lieu of pension benefits
5 the former directors all left the company prior to 31 march 2002
directors’ pensions
audited information
the following director has entitlements under the london international group uk pension scheme the pension entitlement shown is that which would be paid annually 
on retirement based on service to 1 february 2001 when pensionable service for all members of the scheme ceased
transfer value of transfer value transfer value increase in
accrued pension of increase in of accrued transfer value net t otal accrued increase in t otal accrued
at 310302 accrued pension pension at contributions of directors pension at accrued pension pension at
net of inflation 310303 from director contribution 310302 during the year 310303
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
a slater 969 84 1209 – 240 110 10 120
note
1 no other director obtained pension entitlements in defined benefit schemes during the period
the following directors received contributions as detailed below
2003 2002
company company
contribution contribution
£’000 £’000
b j buchan 30 –
s eastwood 38 32
a slater 69 49
g watts 19 19
total 156 100
notes
1 brian buchan’ s pension arrangements were finalised during the year his contributions were paid into the ssl uk pension scheme
2 steve eastwood’ s pension contributions were paid into a personal superannuation scheme in australia
3 andrew slater’ s contributions were paid into the ssl uk pension scheme
4 garry watts’ pension contributions were paid to a personal pension plan
5 t otal contributions to defined contribution schemes for 2002 was £112000
6 during the year ended 31 march 2002 one director accrued benefits to both a defined benefit scheme and the company’ s defined contribution scheme and two further
directors accrued benefits to the company’ s defined benefit scheme ssl international plc 
annual report 2003
33 remuneration report continued
directors’ interests
audited information
shareholdings
the holdings of directors including those of their families in the ordinary share capital of the company at the period end were as follows
31 march 2003 31 march 2002
beneficial beneficial
shares shares
e e anstee 10418 –
b beetz – –
b j buchan 48000 40000
s eastwood 73733 61733
t  s howden 5816 5816
i a martin 8000 4000
p  read 3200 –
a slater 22198 15198
a strasser 20000 20000
g watts 40000 10000
note
1 no director held nonbeneficial shares
option schemes
audited information
directors’ interests in the group’ s share option schemes are as follows
as at granted in lapsed in as at exercise exercisable exercisable
note 310302 the period the period 310303 price p from to
b j buchan
1996 scheme 1 171664 – – 171664 4835 190304 190308
1 163869 – – 163869 5065 170704 170711
1 – 148474 – 148474 2950 180705 180712
2 – 175551 – 175551 2495 281105 281107
saye scheme 3727 – – 3727 4440 010407 011007
339260 324025 – 663285
s eastwood
1996 scheme 1 7 12000 – – 12000 7700 210602 210606
1 35000 – – 35000 7425 140603 140607
1 32000 – – 32000 5000 020704 020711
1 – 51771 – 51771 2950 180705 180712
2 – 61213 – 61213 2495 281105 281107
global share savings plan – 4279 – 4279 2080 280106 280706
79000 117263 – 196263
a slater
1991 scheme 2057 – 2057 –
6931 – 6931 –
2521 – – 2521 4138 151296 151203
105–– 105 3461 250797 250704
17042 – – 17042 3631 141297 141204
16650 – – 16650 5224 060299 060206
16264 – – 16264 7070 041299 041206
1996 scheme 1 7 14903 – – 14903 7835 040103 040107
1 51200–– 51200 5000 020704 020711
1 – 89406 – 89406 2950 180705 180712
2 – 105711 – 105711 2495 281105 281107
saye scheme 1584 – – 1584 4260 010406 011006
2236 – 2236 –
– 4543 – 4543 2080 010406 011006
131493 199660 11224 319929
g watts
1996 scheme 1 75698 – – 75698 4835 190304 190308
1 72260 – – 72260 5065 170704 170711
1 – 98305 – 98305 2950 180705 180712
2 – 116232 – 116232 2495 281105 281107
147958 214537 – 362495 ssl international plc 
annual report 2003
34 remuneration report continued
notes
1 under the 1996 scheme for those options marked 1 exercise is subject to not less than three consecutive years of growth in normalised earnings per share exceeding 
the growth in the retail price index by at least an average two per cent per annum for those marked 2 exercise is subject to performance conditions that must be satisfied 
over initially a threeyear period although this may be extended up to five years the exercise is subject to growth in normalised earnings per share exceeding the growth 
in the retail price index by at least an average of three per cent per annum and t otal shareholder return of the company when compared to t otal shareholder return 
of companies of the ftse250 reaching sixth decile for 50 per cent of the option to become exercisable between sixth and eighth for a prorate between 50 per cent 
and 100 per cent of the option to become exercisable and eighth decile and above for 100 per cent of the option to become exercisable
2 from february 1996 grants made under the 1991 scheme are conditional upon growth in earnings per share exceeding by two per cent per annum the growth 
in the retail price index over the period between grant and exercise
3 a slater’ s options over 2057 shares at 8220p lapsed on 24 june 2002 options over 6931 shares at 8730p lapsed on 8 december 2002 options over 2236 shares 
at 4440p lapsed on 17 january 2003 saye and options over 1584 shares at 4260p lapsed on 15 april 2003 saye 
4 no options were exercised in the period or the previous period
5 there are no performance criteria for exercise of options under the saye schemes
6 the market price of the company’ s shares was 166p on 31 march 2003 and ranged from 166p to 581p during the year 
7 these grants are exercisable subject to the performance conditions being met these conditions have not been met to date
ltip
audited information
outstanding awards under the ssl international longt erm incentive plan as at 31 march 2003 are as follows
performance performance performance deferred shares deferred shares deferred shares
shares as at shares awarded shares as at as at awarded in as at
31 march 2002 in the period 31 march 2003 31 march 2002 the period 31 march 2003
b j buchan – 7990 7990 – 7990 7990
s eastwood 3484 4041 7525 3484 4041 7525
a slater 4541 5194 9735 4541 5194 9735
notes
1 these awards were made in july 2000 and june 2002 for awards made in july 2000 the vesting of the performance shares is subject to the earnings per share increasing 
by inflation plus five per cent per annum over a continuous period of three years these shares will not vest as the criteria have not been achieved for awards made in july
2002 the vesting of the performance shares is subject to the earnings per share increasing by inflation plus two per cent per annum over a continuous period of three years
2 for awards made in july 2000 the market price on the date of award was 717p and for awards made in june 2002 the market price on date of award was 370p
3 deferred awards made in july 2000 vest on 4 july 2003 as do performance awards subject to the condition in note 1 deferred awards made in june 2002 vest on 17 june
2005 as do performance awards subject to the condition in note 1
there has been no change in directors’ interests between 31 march 2003 and 4 june 2003
approved by the board and signed on its behalf by
tim howden
chairman of the remuneration committee
4 june 2003 ssl international plc 
annual report 2003
35
directors’ responsibilities
independent auditors’ report 
to the members of ssl international plc
directors are required by uk company
law to prepare financial statements
which give a true and fair view of the
state of affairs at the end of the financial
year and of the result for the year the
financial statements must be prepared
in compliance with the companies act
1985 and in accordance with applicable
accounting standards
the directors are satisfied that the
group has adequate resources to
continue in operational existence in 
the foreseeable future for this reason
they continue to adopt the going
concern basis in preparing the financial
statements suitable accounting
policies consistently applied and
supported by reasonable and prudent
judgements and estimates have been
used in their preparation
it is the directors’ responsibility to
maintain proper accounting records
which disclose with reasonable accuracy
the financial position of the company
and which enable them to ensure that
the financial statements comply with
we have audited the financial
statements of ssl international plc
which comprise the profit and loss
account the balance sheet the cash
flow statement and the statement of
total recognised gains and losses and 
notes 1 to 32 we have also audited 
the information in the directors’
remuneration report that is described 
as having been audited
this report is made solely to the company’ s
members as a body in accordance with
section 235 of the companies act 1985
our audit work has been undertaken so
that we might state to the company’ s
members those matters we are required
to state to them in an auditor’ s report
and for no other purpose t o the fullest
extent permitted by law we do not
accept or assume responsibility to
anyone other than the company and the
company’ s members as a body for our
audit work for this report or for the
opinions we have formed
respective responsibilities of
directors and auditors
the directors are responsible for
preparing the annual report and the
directors’ remuneration report as
described in the statement of directors’
responsibilities this includes
responsibility for preparing the financial
statements in accordance with
applicable united kingdom law and
accounting standards our
responsibilities as independent
auditors are established in the united
kingdom by statute the auditing
practices board the listing rules of the
financial services authority and by our
profession’ s ethical guidance
we report to you our opinion as to
whether the financial statements give 
a true and fair view and whether the
financial statements and the part of the
directors’ remuneration report to be
audited have been properly prepared in
accordance with the companies act
1985 we also report to you if in our
opinion the directors’ report is not
consistent with the financial statements
if the company has not kept proper
accounting records if we have not
received all the information and
explanations we require for our audit 
or if information specified by law or the
listing rules regarding directors’
remuneration and transactions with the
group is not disclosed
we review whether the corporate
governance statement reflects the
company’ s compliance with the seven
provisions of the combined code
specified for our review by the listing
rules and we report if it does not 
we are not required to consider
whether the board’ s statements on
internal control cover all risks and
controls or form an opinion on the
effectiveness of the group’ s corporate
governance procedures or its risk and
control procedures
we read the other information
contained in the annual report and
consider whether it is consistent with
the audited financial statements this
other information comprises only the
directors’ report the chairman’ s
statement the operating and financial
review the unaudited part of the
directors’ remuneration report and the
corporate governance statement 
we consider the implications for our
report if we become aware of any
apparent misstatements or material
inconsistencies with the financial
statements our responsibilities do 
not extend to any other information
basis of audit opinion
we conducted our audit in accordance
with auditing standards issued by the
auditing practices board an audit
includes examination on a test basis 
of evidence relevant to the amounts 
and disclosures in the financial
statements and the part of the
directors’ remuneration report to be
audited it also includes an assessment
of the significant estimates and
judgements made by the directors in
the preparation of the financial
statements and of whether the
accounting policies are appropriate to
the group’ s circumstances consistently
applied and adequately disclosed
we planned and performed our audit 
so as to obtain all the information and
explanations which we considered
necessary in order to provide us with
sufficient evidence to give reasonable
assurance that the financial statements
and the part of the directors’
remuneration report to be audited are
free from material misstatement
whether caused by fraud or other
irregularity or error in forming our
opinion we also evaluated the overall
adequacy of the presentation of
information in the financial statements
and the part of the directors’
remuneration report to be audited
opinion
in our opinion
— the financial statements give a true
and fair view of the state of affairs 
of the company and the group 
as at 31 march 2003 and of the
profit of the group for the year 
then ended and
— the financial statements and the part
of the directors’ remuneration
report to be audited have been
properly prepared in accordance
with the companies act 1985
kpmg audit plc
chartered accountants
registered auditor
4 june 2003
notes
1 the maintenance and integrity of the
ssl international plc web site is the
responsibility of the directors the
work carried out by the auditors
does not involve consideration of
these matters and accordingly the
auditors accept no responsibility for
any changes that may have occurred
to the financial statements or audit
report since they were initially
presented on the web site
2 legislation in the united kingdom
governing the preparation and
dissemination of financial
statements may differ from
legislation in other jurisdictions
the companies act 1985 the directors
also have general responsibility for
taking such steps as are reasonably open
to them to safeguard the assets of the
company and the group and to prevent
and detect fraud and other irregularities ssl international plc 
annual report 2003
36
consolidated profit 
and loss account
for the year ended 31 march 2003
2003 2003 2002
exceptional before before 2002
2003 items exceptional exceptional exceptional 2002
t otal note 2 items items items total
note £m £m £m £m £m £m 
turnover 
continuing operations 3 6239 – 6239 5809 – 5809 
discontinued operations –– – 115 – 115 
t otal turnover 3 6239 – 6239 5924 – 5924 
cost of sales 4 2649 19 2630 2654 118 2772 
gross profit 4 3590 19 3609 3270 118 3152 
distribution costs 4 1955 53 1902 1906 44 1950 
administrative expenses 4 1066 138 928 848 198 1046 
operating profit 46 
continuing operations 569 210 779 505 366 139 
discontinued operations – – – 11 06 17 
group operating profit 569 210 779 516 360 156 
share of operating profit in associated undertakings 39 02 41 25 03 22 
t otal operating profit group and share of associates 608 212 820 541 363 178 
sale of fixed assets 23a 12 12 – – – – 
lossprofit on disposal of subsidiary undertakings 
businesses and brands 23b 04 04 – – 49 49 
profit on ordinary activities before finance charges 616 204 820 541 314 227 
finance charges net 7 225 – 225 256 – 256 
profitloss on ordinary activities before taxation 391 204 595 285 314 29 
t ax on profitloss on ordinary activities 8 143 36 179 87 16 103 
profitloss on ordinary activities after taxation 248 168 416 198 330 132 
equity minority interests 24 – – – 01 – 01 
profitloss for the financial year 248 168 416 197 330 133 
dividends paid and proposed on equity shares 9 233 – 233 233 – 233 
retained profitloss for the year 22 15 168 183 36 330 366 
earningsloss per share pence 10 
basic 131 – 220 104 – 70 
basic adjusted 162 – 251 133 – 01 
diluted 131 – 220 104 – 70 
the accompanying notes are an integral part of this consolidated profit and loss account  ssl international plc 
annual report 2003
37
group company 
2003 2002 2003 2002
note £m £m £m £m 
fixed assets 
goodwill 749 781 – –
brands trademarks  patents 756 736 – – 
intangible assets 11 1505 1517 – –
t angible assets 12 1582 1673 220 193 
investments 13 91 60 295 276 
investments in own shares 14 05 05 05 05 
3183 3255 520 474 
current assets 
stocks 15 1069 1107 – – 
debtors 16 1925 1898 14822 14768 
cash and deposits 700 562 297 168 
3694 3567 15119 14936 
creditors 
amounts falling due within one year 17 3273 3268 4041 3942 
net current assets 421 299 11078 10994 
t otal assets less current liabilities 3604 3554 11598 11468 
creditors 
amounts falling due after more than one year 18 2364 2352 2234 2216 
provisions for liabilities and charges 19 318 323 30 12 
net assets 922 879 9334 9240 
capital and reserves – equity 
called up share capital 20 189 189 189 189 
share premium account 21 403 400 403 400 
other reserves 22 1368 1368 7836 7836 
profit and loss account 22 1039 1079 906 815 
shareholders’ funds 921 878 9334 9240 
equity minority interests 24 01 01 – – 
t otal capital employed 922 879 9334 9240 
the financial statements on pages 36 to 61 were approved by the board of directors on 4 june 2003 and were signed on its behalf by
b buchan g watts 
director director 
the accompanying notes are an integral part of these balance sheets 
consolidated and company
balance sheets
as at 31 march 2003 ssl international plc 
annual report 2003
38
consolidated cash flow 
statement 
for the year ended 31 march 2003
2003 2002
note £m £m
net cash inflow from operating activities after exceptional items 25a 878 916 
dividends received from associated undertakings – 07 
returns on investments and servicing of finance 
interest received 09 20 
interest paid 236 281 
net cash outflow from returns on investments and servicing of finance 227 261 
taxation 78 186 
capital expenditure and financial investment 
purchase of intangible fixed assets 59 18 
purchase of tangible fixed assets 186 386 
purchase of fixed asset investments – 02 
sale of otc brands and assets 23b 01 131 
sale of tangible fixed assets 63 05 
sale of fixed asset investments – 03 
net cash outflow from capital expenditure and financial investment 181 267 
acquisitions and disposals 
investments in associated undertakings 01 – 
deferred consideration – 52 
sale of product rights businesses and brands – 795 
net cash outflowinflow from acquisitions and disposals 01 743 
equity dividends paid 232 232 
cash inflow before use of liquid resources and financing 159 720 
management of liquid resources 25c 17 76 
financing 
issue of ordinary share capital 03 07 
increase in loans 25c 641 52 
repayment of loans 25c 542 786 
repayment of capital element of finance leases 25c 06 07 
net cash inflowoutflow from financing 96 734 
increasedecrease in cash in the year 25c 272 90 
the accompanying notes are an integral part of this cash flow statement ssl international plc 
annual report 2003
39
consolidated statement of 
t otal recognised gains and losses
for the year ended 31 march 2003
2003 2002
note £m £m
profitloss for the financial year 248 133 
currency translation differences on foreign currency net investments 22 02 23 
t axation on gains and losses taken directly to reserves 23 –
t otal recognised gainslosses relating to the year 269 110 
reconciliation of movements
in shareholders’ funds
for the year ended 31 march 2003
group
2003 2002
note £m £m 
profitloss for the financial year 248 133 
dividends paid and proposed 9 233 233 
retained profitloss for the financial year 15 366 
other recognised lossesgains for the financial year 22 02 23 
t axation on gains and losses taken directly to reserves 22 23 –
share capital issued 21 03 07 
goodwill written back on disposals 23 04 740 
net addition to shareholders’ funds 43 404 
opening shareholders’ funds 878 474 
closing shareholders’ funds 921 878 
the accompanying notes are an integral part of these financial statements 
company
2003 2002
£m £m 
profit for the financial year 324 539 
dividends paid and proposed 233 233 
retained profit for the year 91 306 
share capital issued 03 07 
investment disposal – 4770 
net addition to shareholders’ funds 94 5083 
opening shareholders’ funds 9240 4157 
closing shareholders’ funds 9334 9240  ssl international plc 
annual report 2003
40
notes to the 
financial statements
1 accounting policies
the principal accounting policies are
summarised below they have all been
applied consistently throughout the
current and preceding year
a preparation of financial
statements
the financial statements have been
prepared under the historical cost
convention and in accordance with
applicable accounting standards
b basis of consolidation
the group accounts include the
accounts of the company and its
subsidiary undertakings made up 
to 31 march 2003 unless otherwise
stated the acquisition method of
accounting has been adopted under
this method the results of subsidiary
undertakings acquired or disposed of in
the year are included in the consolidated
profit and loss account from the date of
acquisition or up to the date of disposal 
an associate is an undertaking in which
the group has a longterm interest
usually from 20 per cent to 50 per cent
of the equity voting rights and over
which it exerts significant influence 
the group’ s share of results of its
associates is included in the consolidated
profit and loss account and its interest 
in their net assets is included in
investments in the consolidated 
balance sheet
in accordance with section 2304 
of the companies act 1985 the
company has elected not to present
its own profit and loss account 
the profit for the financial year dealt
with in the financial statements of the
parent company ssl international plc 
is disclosed in the reconciliation of
movement in shareholders’ funds
c acquisitions and disposals
goodwill arising on the acquisition 
of subsidiary undertakings and
businesses representing any excess 
of the fair value of the consideration
given over the fair value of the
identifiable assets and liabilities
acquired is capitalised as an intangible
asset and written off to the profit and
loss account on a straight line basis 
over its useful economic life up to 
a maximum of 20 years the useful
economic life is determined for 
each separate acquisition giving
consideration to the period over 
which the group expects to derive
economic benefit from the asset on 
the subsequent disposal or termination 
of a business acquired since 1 march
1998 the profit or loss on disposal 
or termination is calculated after
chargingcrediting the unamortised
amount of any related goodwill
negative goodwill
goodwill arising on acquisitions prior 
to 1 march 1998 was written off to 
the profit and loss reserve in accordance
with the accounting standard then 
in force as permitted by frs 10 the
goodwill previously written off to
reserves has not been reinstated in 
the balance sheet on disposal or
closure of a previously acquired
business the attributable amount 
of goodwill previously written off 
to reserves is included in determining
the profit or loss on disposal 
when the group has acquired shares 
in other companies by the issue of
shares and the requirements of section
131 of the companies act 1985 have
been satisfied the group has utilised 
the merger relief provisions available 
and the issue of shares has been
recorded at the nominal value 
any premium being credited to the
merger reserve
d intangible assets
intangible assets that are acquired and
which can be separately identified and
valued are capitalised and amortised
over their estimated useful economic
lives usually between 10 – 20 years 
in determining the useful economic life
each asset is reviewed separately and
consideration given to the period over
which the group expects to derive
economic benefit from the asset
acquired trade marks and patents
include the ownership of the scholl
trade name throughout the world 
with the exception of the americas 
the scholl trade name is held at cost 
and is subject to an annual impairment
review to identify any diminution in 
the recoverable amount of the acquired
rights the directors believe that the
scholl brand does not have a finite
economic life because of its proven
value over long periods and its position
in the market is sustainable for the
foreseeable future
intangible assets that are acquired 
and which cannot be measured
independently of goodwill and brands
are included and accounted for as 
part of goodwill
e t angible fixed assets
no fixed assets have been revalued
depreciation is provided to write
tangible fixed assets down to a residual
value over their estimated useful
economic lives at the following 
annual rates
— freehold land no depreciation 
is charged on freehold land
— freehold and long leasehold
buildings two per cent of cost 
or over the life of the lease if 
less than 50 years
provision is made at rates expected 
to be applicable when the liabilities 
or assets are likely to crystallise
k foreign currencies
transactions in foreign currencies are
recorded using the rate of exchange
ruling at the date of the transaction
unless sale proceeds are the subject 
of a forward sale for a predetermined
sum in sterling monetary assets and
liabilities denominated in foreign
currencies are translated using the rate
of exchange ruling at the balance sheet
date gains or losses on transactions are
included in the profit and loss account
to the extent that they are not matched
by binding forward trading contracts
profit and loss accounts of foreign
operations are translated into sterling 
at the average rate applicable to the
respective accounting period
assets and liabilities of foreign
operations are translated using the rate
of exchange ruling at the balance sheet
date gains or losses on translations 
of foreign operations and on foreign
currency borrowings to the extent they
hedge the group’ s investment in such
operations are included as a movement
on reserves
l leases
costs in respect of operating leases are
charged to the profit and loss account
on a straight line basis over the term 
of the lease
a finance lease is a lease that transfers
substantially all the risks and rewards 
of ownership of an asset to the lessee
assets acquired under hire purchase
contracts and finance leases are
capitalised and included in tangible
fixed assets the capital element of
future lease obligations is recorded 
as a liability amounts payable are
apportioned between the finance
element which is charged to the profit
and loss account as interest on a
reducing balance basis and the capital
element which reduces the outstanding
obligation for future instalments
m pension costs
the group continues to operate both
defined benefit and defined contribution
pension plans uk defined benefit
schemes are closed to new entrants
for defined contribution schemes 
costs are charged to the profit and 
loss account as incurred
— motor vehicles 25 per cent of cost or
net book value according to the type
of vehicle concerned
— plant and equipment seven per cent
to 25 per cent of cost or net book
value according to the circumstances
of the assets concerned and 
— assets under the course of
construction no depreciation 
is charged on assets under the
course of construction
f associated undertakings
all companies where the group 
has significant influence normally
evidenced by both board representation
and ownership of at least 20 to 50 per
cent of the voting rights on a longterm
basis are treated as associated
undertakings
the group’ s share of the results of
associated undertakings is included 
in the profit and loss account and the
group’ s share of net assets is shown 
in the consolidated balance sheet
g investments
unlisted investments are stated at 
cost less provisions for any impairment
in value
h stocks
stocks are stated at the lower of cost
and net realisable value using the fifo
method for work in progress and
finished goods cost is taken as
production cost which includes an
appropriate proportion of overheads
i research and development
expenditure on research and
development is written off against
profits in the period in which it is
incurred except for the development
expenditure on new or substantially
improved products which is capitalised
only when future recoverability is
reasonably assured provision is made
for any impairment in value
j t axation
the charge for taxation is based on 
the profit for the period and takes 
into account taxation deferred because
of timing differences between the
treatment of certain items for taxation
and accounting purposes
credit is taken for advance corporation
tax written off in previous years when 
it is recovered against corporation 
tax liabilities 
in accordance with frs 19 deferred 
tax is provided where a taxation liability
will arise as a result of transactions or
events which have occurred by the
balance sheet date deferred tax assets
are recognised to the extent that it is
regarded that they will be recovered ssl international plc 
annual report 2003
41 notes to the 
financial statements continued
for defined benefit schemes the cost 
of providing pensions and other post
retirement benefits is charged to the
profit and loss account on a systematic
and rational basis over the period 
during which benefit is derived from
employees’ service the difference
between the charges to the profit 
and loss account and the actual
contributions paid is included as an
asset or liability in the balance sheet
note 32 also contains additional
disclosures as required by frs 17
‘retirement benefits’
n turnover
turnover represents the invoiced value
of goods and services provided during
the year net of trade discounts value
added and sales taxes sales returns 
are recognised as a reduction to
turnover as they arise credit note
reserves are provided at the year end 
to account for management estimates
of customer returns
o derivative financial instruments
the group uses derivative financial
instruments to reduce exposure to
foreign exchange risk and interest rate
movements the group does not hold
or issue derivative financial instruments
for speculative purposes
for a forward foreign exchange 
contract to be treated as a hedge the
instrument must be related to actual
foreign currency assets or liabilities or to
a probable commitment it must involve
the same currency or similar currencies
as the hedged item and must also
reduce the risk of foreign currency
exchange movements on the group’ s
operations gains and losses arising 
on these contracts are deferred and
recognised in the profit and loss
account or as adjustments to the
carrying amount of fixed assets 
only when the hedged transaction 
has itself been reflected in the group’ s
financial statements
for an interest rate swap to be treated
as a hedge the instrument must be
related to actual assets or liabilities 
or a probable commitment and must
change the nature of the interest rate 
by changing the basis of calculation 
eg from fixed to floating rate interest
differentials under these swaps are
recognised by adjusting net interest
payable over the periods of the
contracts
if an instrument ceases to be accounted
for as a hedge for example because 
the underlying hedged position is
eliminated the instrument is marked 
to market and any resulting profit or 
loss recognised at that time
p employee share schemes
the group operates a number of
employee share schemes the cost 
to the company of making awards in 
the form of shares or rights to shares
under these schemes is charged to the
profit and loss account over the period
to which the employee’ s performance
relates no charge is taken to the profit
and loss account in respect of awards
made under saye schemes under 
the exemptions of uitf 17 ‘employee 
share schemes’
2 consolidated profit and loss
exceptional items discontinued
operations
exceptional items
the £204 million pretax exceptional
charge for the year includes business
processes review and associated
consultancy costs of £72 million net
manufacturing costs of £15 million and
professional fees and other charges of
£33 million including costs relating to
proposed disposals of part of the group
the exceptional charge also includes
£84 million of merger restructuring
and redundancy costs net of profit 
on disposal of fixed assets 
the prior year exceptional charge
related to restructuring costs £164
million elimination of trade loading
£119 million and a write off of an
intangible fixed asset £86 million 
profit on disposals of £49 million
partially offset these costs
discontinued operations
discontinued operations in the prior
year ended 31 march 2002 related 
to the group’ s continence care business
the profit on disposal of the business
was disclosed as exceptional see 
note 23b ssl international plc 
annual report 2003
42 notes to the 
financial statements continued
3 segmental analysis
a analysis of turnover by principal class of business
2003 2002
£m £m
continuing operations
consumer healthcare 3773 3493 
medical 1818 1628
household and industrial gloves 462 472 
other 186 216
6239 5809
discontinued operations
medical – 115
6239 5924
the classes of business are fully integrated into the group therefore the profit before finance charges and net assets have not been disclosed in the year ended 31 march 
2002 the continence care business was disclosed as discontinued prior year comparatives have been reclassified to reflect the fact that sauber and scholl medical 
compression hosiery are now reported in consumer healthcare
b analysis of turnover by principal region of origin
t otal sales interregion third party 
2003 2002 2003 2002 2003 2002
£m £m £m £m £m £m 
continuing operations
united kingdom and eire 4664 4611 2691 2719 1973 1892 
continental europe 2711 2507 260 267 2451 2240 
americas 1147 1056 17 17 1130 1039 
asia pacific and rest of the world 1224 1192 539 554 685 638 
9746 9366 3507 3557 6239 5809 
discontinued operations 
united kingdom and eire – 114 – 03 – 111 
asia pacific and rest of the world – 04 – – – 04 
9746 9484 3507 3560 6239 5924 
continental europe includes austria belgium the czech republic france germany greece hungary italy luxembourg the netherlands poland portugal romania 
russia scandinavia slovakia spain switzerland and turkey
c analysis of turnover by geographical destination
2003 2002
£m £m 
continuing operations
united kingdom and eire 1727 1468 
continental europe 2496 2427 
americas 1167 1055 
asia pacific and rest of the world 849 859 
6239 5809 
discontinued operations
united kingdom and eire – 105 
asia pacific and rest of the world – 10 
6239 5924 
d profit on ordinary activities before finance charges
2003 2002
2003 before before 2002
2003 exceptional exceptional exceptional exceptional 2002
total items items items items total
£m £m £m £m £m £m
continuing operations
united kingdom and eire 349 130 479 322 560 238
continental europe 99 62 161 130 23 107 
americas 09 09 18 87 28 59
asia pacific and rest of the world 159 03 162 165 44 121
616 204 820 530 599 69 
discontinued operations 
united kingdom and eire ––– 11 297 308 
asia pacific and rest of the world ––– – 12 12 
616 204 820 541 314 227  ssl international plc 
annual report 2003
43 notes to the 
financial statements continued
3 segmental analysis continued 
e net operating assets by principal region
2003 2002
£m £m
continuing operations
united kingdom and eire 2246 2387
continental europe 981 915
americas 420 474 
asia pacific and rest of the world 716 694 
4363 4470 
discontinued operations
united kingdom and eire – –
asia pacific and rest of the world – –
4363 4470
f reconciliation of net operating assets to total net assets
2003 2002
£m £m
net operating assets as above 4363 4470 
investments 96 65 
cash at bank and in hand 700 562 
t axation recoverable 20 33 
deferred tax asset 42 45 
assets held for disposal 07 07 
borrowings 3620 3641 
t axation on profits – creditors 202 180 
deferred consideration 07 – 
proposed dividends 159 159
provision for liabilities and charges 318 323
net assets 922 879 
4 analysis of continuing and discontinued operations
2003 2002
2003 before before 2002
2003 exceptional exceptional exceptional exceptional 2002
total items items items items total
£m £m £m £m £m £m 
cost of sales 
continuing operations 2649 19 2630 2587 124 2711 
discontinued operations – – – 67 06 61 
2649 19 2630 2654 118 2772 
gross profit 
continuing operations 3590 19 3609 3222 124 3098 
discontinued operations – – – 48 06 54 
3590 19 3609 3270 118 3152 
distribution costs 
continuing operations 1955 53 1902 1889 44 1933 
discontinued operations – – – 17 – 17 
1955 53 1902 1906 44 1950 
administrative expenses 
continuing operations 1066 138 928 828 198 1026 
discontinued operations – – – 20 – 20 
1066 138 928 848 198 1046 
share of operating profit in associated undertakings relates to continuing operations ssl international plc 
annual report 2003
44 notes to the 
financial statements continued
5 group operating profit
group operating profit is stated after charging
2003 2002
£m £m 
depreciation of tangible fixed assets 183 181 
amortisation of goodwill and intangible assets 59 131
research and development 130 116 
operating lease rentals 
— plant and machinery 34 36 
— other 55 54 
auditors’ remuneration 
— audit — group 07 06 
— company – –
— nonaudit 18 22
included within the 2003 nonaudit fees were £07million costs 2002 £17 million in respect of the investigation which commenced in 2001 see note 28 
6 staff costs
employee costs during the year amounted to
2003 2002
£m £m 
wages and salaries 913 963
social security costs 122 117 
other pension and health insurance costs 103 104 
1138 1184 
the average monthly number of employees including executive directors was as follows
2003 2002
manufacturing 4455 4818
marketing and selling 1444 1730
administration 1029 1106
6928 7654
full details of directors’ remuneration shares and options are set out in the remuneration committee report on pages 29 to 34
7 finance charges net 
investment income
2003 2002
£m £m 
income from shortterm investments 09 13 
other interest receivable and similar income – 05 
09 18 
interest payable and similar charges
2003 2002
£m £m 
bank loans and overdrafts 62 101 
loan notes 171 172 
finance leases 01 01 
234 274 
share of associated undertakings’ interest payable – – 
234 274 
finance charges net
2003 2002
£m £m 
interest payable and similar charges 234 274
less investment income 09 18
225 256
group 225 256 
associated undertakings – – 
225 256  ssl international plc 
annual report 2003
45 notes to the 
financial statements continued
8 t axation
a analysis of charge for the year
2003 2002
2003 before before 2002
2003 exceptional exceptional exceptional exceptional 2002 
total items items items items total
note £m £m £m £m £m £m 
current tax 
uk corporation t ax on profitloss for the year 75 28 103 57 15 72 
adjustments in respect of previous periods – – – 19 – 19 
advance corporation t ax recovered – – – 09 – 09 
overseas taxation including £nil in respect of prior periods
2002 £01million 40 08 48 37 01 38 
share of associated undertakings’ tax 09 – 09 03 – 03 
t otal current tax 8b 124 36 160 87 16 103 
deferred tax 
origination and reversal of timing differences 19 – 19 – – – 
t ax on profitloss on ordinary activities 143 36 179 87 16 103 
b factors affecting the tax charge for the year
2003 2002
total total 
note £m £m 
profitloss on ordinary activities before tax 391 29
profitloss on ordinary activities multiplied by the standard 
rate of corporation tax for the group of 30 per cent 117 08
effects of 
expenses not deductible for tax purposes 04 25
overseas losses not tax relievable 33 53
difference in tax rates on overseas earnings 24 61
asset write off not tax relievable 12 39
goodwill on disposals 01 58
adjustments to tax charge in respect of prior periods – 19
elimination of intragroup profit 02 43
capital allowances in excess of related depreciation 06 –
other timing differences 13 –
other 04 27
current tax charge for the year including associates tax 8a 124 103
the standard rate of corporation tax for the group has been calculated based on the uk rate of corporation tax
c factors which may affect future tax charges
deferred taxation in not provided in respect of liabilities which might arise on the distribution of unappropriated profits of overseas subsidiary undertakings
d t axation taken directly to the consolidated statement of recognised gains and losses 
2003 2002
£m £m 
t ax on foreign currency gains and losses 
treated as being as permanent as equity 23 – 
9 dividends
2003 2002
£m £m 
attributable to equity share capital 
— interim paid of 39p 2002 39p per ordinary share 74 74 
— final proposed of 84p 2002 84p per ordinary share 159 159 
t otal dividends 233 233 
dividends on shares owned by all employee share ownership trusts have been waived ssl international plc 
annual report 2003
46 notes to the 
financial statements continued
10 earningsloss per share
earningsloss per share has been calculated by dividing the profitloss attributable to ordinary shareholders by the weighted average number of ordinary shares in issue 
during the year
an adjusted earningsloss per share figure has been shown in order to achieve comparability year on year the calculation uses the basic weighted average number of shares
together with basic earnings loss adjusted to exclude the impact of amortisation of goodwill and intangibles
the profitloss attributable to ordinary shareholders is calculated as follows 
2003 2002
before before
exceptional exceptional 
2003 items items 2002
£m £m £m £m 
profitloss for the year 
for basic earningsloss per share 248 416 197 133 
amortisation of goodwill and intangibles 59 59 54 131 
for adjusted earningsloss per share 307 475 251 02 
the calculation of diluted earningsloss per share uses basic earningsloss as defined above and the basic weighted average number of ordinary shares in issue during 
the year adjusted as follows 
2003 2002
before before
exceptional exceptional 
2003 items items 2002
weighted average number of shares millions 
for basic earningsloss per share 1892 1892 1891 1891 
dilutive effect of share options 02 02 03 – 
for diluted earningsloss per share 1894 1894 1894 1891 
11 goodwill and intangible assets 
group
goodwill scholl brand other total 
£m £m £m £m
cost 
at 1 april 2002 868 598 365 1831
exchange adjustments 30 04 05 21
additions 35 – 31 66 
at 31 march 2003 873 602 401 1876 
amortisation 
at 1 april 2002 87 – 227 314 
exchange adjustments 04 – 02 02
charge for the year 41 – 18 59 
at 31 march 2003 124 – 247 371 
net book value 
at 31 march 2003 749 602 154 1505 
at 31 march 2002 781 598 138 1517 
the scholl brand has been subject to an impairment review in accordance with frs 11 there has been no impairment of book value during the year
goodwill additions in the year included goodwill relating to the purchase of eulactol cracked heel range other intangible additions include patents and technology agreements 
other intangible assets represent trademarks purchased knowhow product licenses and capitalised development costs  ssl international plc 
annual report 2003
47 notes to the 
financial statements continued
12 t angible fixed assets 
group 
plant 
equipment 
land and and motor 
buildings vehicles total
£m £m £m
cost 
at 1 april 2002 715 2187 2902
exchange adjustments 17 24 41
additions 27 158 185
disposals 67 120 187
at 31 march 2003 658 2201 2859
depreciation 
at 1 april 2002 111 1118 1229
exchange adjustments 01 03 04
charge for the year 15 168 183
disposals 27 104 131
at 31 march 2003 98 1179 1277
net book value 
at 31 march 2003 560 1022 1582
at 31 march 2002 604 1069 1673
company
plant 
equipment
land and and motor 
buildings vehicles total
£m £m £m
cost 
at 1 april 2002 28 224 252
additions – 100 100
disposals 28 09 37
at 31 march 2003 –315 315
depreciation
at 1 april 2002 02 57 59
charge for the year – 42 42
disposals 02 04 06
at 31 march 2003 – 95 95
net book value 
at 31 march 2003 – 220 220
at 31 march 2002 26 167 193 
the net book values of land and buildings are analysed as 
group company 
2003 2002 2003 2002
£m £m £m £m 
freehold property 302 354 – 26 
long leasehold property 93 105 – – 
short leasehold property 165 145 – – 
560 604 – 26 
the net book value of plant equipment and motor vehicles of the group and company includes an amount of £16 million 2002 £20 million in respect of assets held 
under finance leases depreciation charged during the year in respect of those assets amounted to £04 million 2002 £04 million
group assets held under the course of construction comprise £31 million 2002 £103 million of which £27 million 2002 £103 million is included within plant and 
machinery the remainder of assets held under the course of construction is £04 million in respect of land and buildings 2002 £nil  ssl international plc 
annual report 2003
48 notes to the 
financial statements continued
13 fixed asset investments
the group’ s investments are as follows 
group
share of 
associated unlisted
undertakings investments total
£m £m £m
cost at 1 april 2002 22 04 26 
additions 01 02 03
cost at 31 march 2003 23 06 29 
share of retained profit at 1 april 2002 38 – 38 
exchange adjustments 02 – 02
share of retained profit for the year 30 – 30 
share of retained profit at 31 march 2003 66 – 66
provisions at 1 april 2002 and 31 march 2003 – 04 04
net book value at 31 march 2003 89 02 91 
net book value at 31 march 2002 60 – 60
details of the principal group operating undertakings are set out in note 29
investments in subsidiary undertakings 
the company’ s investments are as follows
cost of shares in 
subsidiary 
undertakings 
£m 
cost and net book value at 1 april 2002 276 
additions 19 
cost and net book value at 31 march 2003 295 
net book value at 31 march 2002 276 
14 investments in own shares
group
seton 
seton group
quest esop total
£m £m £m
cost
at 1 april 2002 and 31 march 2003 02 03 05 
company
seton 
seton group
quest esop total
£m £m £m
cost
at 1 april 2002 and 31 march 2003 02 03 05
the seton healthcare group qualifying employee share ownership t rust quest purchases the company’ s shares in the open market these are held for employees 
participating in the company’ s sharesave scheme no shares were purchased during the year ended 31 march 2003 the scheme held 42722 shares as at 31 march 2003
the seton healthcare group employee share ownership plan esop purchases the company’ s shares in the open market these are held for employees participating in the
company’ s 1996 executive share option scheme and company share option scheme 2000 no shares were purchased during the year ended 31 march 2003 the scheme 
held 59055 shares as at 31 march 2003
in accordance with the requirements of uitf 13 ‘accounting for esop trusts’ the group has recognised the assets of each of the trusts as fixed assets of the group 
the shares in the esop and the quest are valued at 535p the original cost
in addition to the shares recognised by the group in accordance with uitf 13 shares are also held by the ssl international employee benefit trust ebt these shares are 
held by the ebt for those employees participating in the company’ s longterm incentive plan and have been purchased by the ebt in accordance with the conditions as set 
out in the remuneration committee report on pages 29 to 34 these shares have not been recognised as investments in own shares as the ownership of these shares vests 
with the directors and senior management to whom they have been awarded during the year 72952 shares have been subscribed for at a cost of 370p per share 
the share price as at 31 march 2003 was 166p  ssl international plc 
annual report 2003
49 notes to the 
financial statements continued
15 stocks 
group company 
2003 2002 2003 2002
£m £m £m £m 
raw materials and consumables 106 115 – – 
work in progress 66 63 – – 
finished goods and goods for resale 897 929 – – 
1069 1107 – – 
16 debtors
a amounts falling due within one year 
group company 
2003 2002 2003 2002
£m £m £m £m 
trade debtors 1671 1582 – – 
amounts owed by subsidiary undertakings – – 14812 14748 
t axation recoverable 20 33 – – 
other debtors 136 159 – – 
prepayments and accrued income 45 60 10 20 
assets held for disposal 07 07 – – 
1879 1841 14822 14768 
included within trade debtors are debts totalling £164 million which are subject to an invoice discounting agreement amounts received from the discounter in respect 
of these debts are included within other creditors and total £131 million at year end
b amounts falling due after more than one year 
group company 
2003 2002 2003 2002
£m £m £m £m 
other debtors 04 12 – – 
deferred tax asset 42 45 – –
46 57 – –
17 creditors amounts falling due within one year
group company 
2003 2002 2003 2002
£m £m £m £m 
obligations under finance leases 05 05 04 04 
bank loans and overdrafts 1256 1329 973 891 
loan notes 41 – 41 – 
trade creditors 690 718 – – 
amounts owed to subsidiary undertakings – – 2615 2774 
amounts owed to associated undertakings 24 – – – 
t axation on profits  – uk 184 168 11 12 
– overseas 18 07 – – 
other taxation and social security 69 78 – – 
other creditors and accruals 827 804 238 102 
proposed dividends 159 159 159 159 
3273 3268 4041 3942  ssl international plc 
annual report 2003
50 notes to the 
financial statements continued
18 creditors amounts falling due after more than one year 
group company 
2003 2002 2003 2002
£m £m £m £m 
obligations under finance leases 05 05 04 05 
bank loans and overdrafts 83 91 – – 
loan notes 2230 2211 2230 2211 
t axation on profits – overseas – 05 – – 
other creditors and accruals 39 40 – – 
deferred consideration 07 – – – 
2364 2352 2234 2216 
bank loans overdrafts and loan notes are repayable as follows
group company 
2003 2002 2003 2002
£m £m £m £m 
within one year or on demand 1297 1329 1014 891 
one to two years 120 70 82 37 
t wo to five years 291 276 246 218 
after five years 1902 1956 1902 1956 
3610 3631 3244 3102 
loan notes repayable by instalments amount to £525 million 2002 £473 million of which £162 million falls due after more than five years 2002 £218 million 
the loan notes comprise us 767 per cent guaranteed loan notes 2009 totalling us830 million which were issued in november 1999 and are repayable in 13 equal 
instalments commencing 2003 us 784 per cent guaranteed loan notes 2009 totalling us2620 million which were issued in november 1999 and will be repaid in
november 2009 and sterling 752 per cent guaranteed loan notes 2014 totalling £150 million which were issued in november 1999 and will be repaid in november 2014
obligations under finance leases are repayable as follows
group company 
2003 2002 2003 2002
£m £m £m £m 
within one year or on demand 05 05 04 04 
one to two years 04 05 03 05
t wo to five years 01 – 01 –
10 10 08 09 
t otal borrowings including finance leases are repayable as follows 
group company 
2003 2002 2003 2002
£m £m £m £m 
within one year or on demand 1302 1334 1018 895 
one to two years 124 75 85 42
t wo to five years 292 276 247 218
after five years 1902 1956 1902 1956
3620 3641 3252 3111
unsecured borrowings 3620 3641 3252 3111
19 provisions for liabilities and charges
group 
overseas merger
pensions integration logistics and
and similar deferred manufacturing and commercial business process
obligations taxation restructuring restructuring other review total
£m £m £m £m £m £m £m
at 1 april 2002 35 98 24 34 87 – 278 
charged to the profit and loss account 02 19 22 84 33 72 232 
released unused 01 – 07 – – – 08
utilised in the year – – 17 84 65 53 219
exchange adjustments 03 04 02 – 02 – 07
33 113 24 34 53 19 276 
included within debtors – 42 – – – – 42 
at 31 march 2003 33 155 24 34 53 19 318 
as at 31 march 2003 the deferred taxation provision included in debtors was £42 million 2002 £45 million t otal provisions at 1 april 2002 were £323 million 
this comprised £45 million deferred tax provision included within debtors plus £278 million of other provisions ssl international plc 
annual report 2003
51 notes to the 
financial statements continued
19 provisions for liabilities and charges continued
company 
deferred merger
taxation integration total
£m £m £m
at 1 april 2002 09 03 12
charged to the profit and loss account 01 63 64
released unused –––
utilised in the year – 46 46
at 31 march 2003 10 20 30
manufacturing restructuring 
costs charged this year from the manufacturing review relate to the closure of part of the avanti condom facility in cambridge the closing provisions relate to outstanding
costs from this announcement and some other remaining site exit costs from earlier years
merger integration
the group has continued during the year with its rationalisation and integration of commercial operations following the mergers of the late nineties during the year 
the group closed and sold its former head office t oft hall and restructured some of its european commercial operations including the disposal of a warehouse in holland
european logistics and related business processes review
costs incurred during the year relate to one off costs written off arising from the uk and france peoplesoft implementation and costs arising from the european supply 
chain and related business processes review which the group commenced during the year
other
other provisions relate to a number of premerger environmental provisions surplus property provisions and other obligations following previous acquisitions
costs charged this year relate to professional costs in connection with the proposed disposal of parts of the group and ongoing costs incurred in relation to the 
sfo and oft investigations see note 28
deferred taxation
the deferred taxation balance relates to
group company 
2003 2002 2003 2002
£m £m £m £m 
capital allowances in excess of related depreciation 136 130 10 09 
other timing differences 23 33 – – 
t ax losses carried forward – – – –
provision for deferred tax 113 97 10 09 
20 called up share capital 
group and company group and company 
2003 2003 2002 2002
shares number £m shares number £m 
authorised 
ordinary shares of 10p each 250000000 250250000000 250 
issued
ordinary shares of 10p each 189312954 189189206112 189 
during the year the company allotted 33890 shares with a nominal value of £3389 under share option schemes for an aggregate cash consideration of £92819 
a further 72952 shares with a nominal value of £7295 were issued and purchased for cash consideration of £269967 by the ssl international employee benefit trust ebt 
options outstanding at 31 march 2003 totalled 9020366 ordinary shares granted under share option schemes at prices between 208p and 940p per share exercisable
between 1 april 2003 and 18 july 2012 the directors’ interests in share options are disclosed in the remuneration report pages 29 to 34
21 share premium account 
group and company 
£m
at 1 april 2002 400
share options exercised and shares purchased by the ebt 03 
at 31 march 2003 403 ssl international plc 
annual report 2003
52 notes to the 
financial statements continued
22 reserves 
group 
profit and loss merger
account reserve total
note £m £m £m
at 1 april 2002 1079 1368 289
translation differences 02 – 02
t axation on gains and losses taken directly to reserves 23 – 23
goodwill on disposals previously written off to reserves 23 04 – 04
retained profit for the year 15 – 15
1039 1368 329
cumulative total of goodwill written off against group profit and loss reserves in respect of acquisitions prior to 1 march 1998 when frs 10 goodwill and intangible assets 
was adopted amounts to £152 million 2002 £1524 million in accordance with frs 10 goodwill on acquisitions post 1 march 1998 has been capitalised and amortised 
as outlined in note 1c
company 
non
profit and loss distributable
account reserves total
£m £m £m
at 1 april 2002 815 7836 8651
retained profit for the year 91 – 91
906 7836 8742
of the reserves of the company £906 million 2002 £815 million is regarded as distributable 
23a sale of fixed assets
an exceptional profit of £12 million was made relating to the the sale of a warehouse in holland proceeds of £18 million compared with a net book value of £06 million 
23b sale of business and brands
in the financial year ended 31 march 2002 the group disposed of the continence care business disclosed as discontinuing operations and some otc brands disclosed 
as continuing operations
during the year ended 31 march 2003 additional sales of otc brands were made
net assets disposed of and the related sales proceeds were as follows 
continuing continuing discontinued
operations operations operations
2003 2002 2002 2002
£m £m £m £m 
otc brands t otal otc brands continence
care
£m £m £m
intangible fixed assets – 55 – 55 
t angible fixed assets – 13 03 10 
current assets – 69 – 69 
creditors – – – – 
provisions for liabilities and charges – – – – 
net assets – 137 03 134 
related goodwill 04 740 358 382 
related expenses 01 09 04 05 
05 886 365 521 
lossprofit on sale 04 49 230 279 
sale proceeds 01 935 135 800 
satisfied by 
cash 01 935 135 800 
net cash inflows in respect of the sale comprised 
cash consideration 01 935 135 800 
expenses incurred – 09 04 05 
01 926 131 795  ssl international plc 
annual report 2003
53 notes to the 
financial statements continued
24 minority interests 
£m 
at 1 april 2002 01
share of profit after tax of sslttk limited –
at 31 march 2003 01 
the minority interests comprise equity shares in sslttk limited 2002 sslttk limited and pt scholindo nusantra the minority share of profit after tax for the year
was less than £01 million 2002 £01 million pt scholindo nusantra was put into liquidation at the end of the year ended 31 march 2002 
25 notes to the consolidated cash flow statement 
a reconciliation of operating profit to net cash inflow 
from operating activities 
2003 2002
£m £m
group operating profit preexceptional 779 516 
depreciation and amortisation 242 230 
profit on sales of tangible fixed assets 01 07 
exchange differences – 01 
decrease in stocks 27 04 
decrease in debtors 27 628 
decrease in creditors 29 186 
decrease in provisions 05 01 
net cash inflow from operating activities preexceptional items 1042 1197 
cash effect of exceptional items 164 281 
net cash inflow from operating activities after exceptional items 878 916 
exceptional cash charges of £164 million exclude the effect of proceeds from sale of fixed assets £56 million and otc brands £01 million  which were treated as 
exceptional items within the consolidated profit and loss account proceeds of £56 million from sale of tangible fixed assets are included within the £63 million disclosed 
within the consolidated cash flow statement proceeds from sale of otc brands of £01 million are disclosed separately within the consolidated cash flow statement 
the net exceptional cash outflow after taking into account disposal proceeds is £107 million 
b sale of product rights businesses and brands 
2003 2002
£m £m 
net assets sold 
intangible fixed assets – 55 
t angible fixed assets – 10 
stocks – 69 
– 134 
profitloss on disposal – 279 
goodwill written back on disposal – 382 
sale proceeds – 795 
satisfied by 
cash consideration net of expenses – 795 
in 2002 the sale of the continence care business was disclosed within net cash outflows from acquisitions and disposals in the consolidated cash flow statement 
in both 2002 and 2003 the sale of otc brands was disclosed within net cash flows from acquisition and disposals
c analysis of net debt 
other 
at 1 april noncash exchange at 31 march
2002 cash flow changes movement 2003
£m £m £m £m £m 
cash in hand and at bank 425 134 – 17 576 
overdrafts 297 138 – 05 164
128 272 – 12 412 
debt due within one year 1032 99 41 39 1133
debt due after one year 2302 – 41 52 2313
finance leases 10 06 05 01 10
liquid resources cash deposits 137 17 – 04 124 
net debt 3079 162 05 02 2920
cash for the purpose of the cash flow statement comprises cash in hand and at banks repayable on demand less overdrafts payable on demand
liquid resources are current asset investments which are disposable without curtailing or disrupting the business and are either readily convertible into known amounts 
of at or close to their carrying values or traded in an active market liquid resources comprise term deposits of less than one year other than cash government securities 
and investment in money market managed funds ssl international plc 
annual report 2003
54 notes to the 
financial statements continued
d reconciliation of net cash inflow to movement in net debt 
2003 2002
£m £m 
increasedecrease in cash in the year 272 90 
cash inflowoutflow from increasedecrease in debt 99 734 
cash outflow from payment of finance leases 06 07 
cash inflowoutflow from changes in liquid resources 17 76 
changes in net debt resulting from cash flows 162 727 
new finance leases 05 10 
exchange differences 02 13 
movement in net debt in the year 159 730 
net debt at 1 april 2002 3079 3809 
net debt at 31 march 2003 2920 3079 
26 capital commitments
group company 
2003 2002 2003 2002
£m £m £m £m 
contracted for but not provided 19 07 05 – 
27 leasing commitments
commitments in respect of noncancellable operating lease rentals due within one year of the balance sheet date analysed to the expiry date of the commitment are 
group
plant equipment 
land and buildings and motor vehicles 
2003 2002 2003 2002
£m £m £m £m 
within one year 06 10 10 06 
t wo to five years 21 26 25 26 
after five years 29 34 03 – 
56 70 38 32  ssl international plc 
annual report 2003
55 notes to the 
financial statements continued
28 contingent liabilities
provision has been made in the 
group financial statements for 
the environmental clean up costs 
in the usa based on the director’ s 
best estimates of such costs according 
to information currently available 
it is not possible to estimate with
certainty the extent of any further
liability that may arise
litigation
the group along with most other
suppliers of medical gloves is involved
in a number of lawsuits in the usa
alleging the development of sensitivities
to natural rubber latex the directors
have confidence in the highquality
gloves produced by the group and
believe it has defences available 
in conjunction with its insurers ssl
concluded a preliminary settlement 
of the majority of cases involving 
regent biogel surgical gloves this
settlement is not expected to have 
a negative impact on the profit and 
loss account
the group believes that a substantial
amount of any defence costs and
potential liability will be covered 
by insurance some insurers have
however reserved their rights ie
neither admitted nor denied coverage
and the group is currently asserting 
its allocation of lawsuits to policy years
in order that insurers can remove such
reservation plaintiffs have also alleged
successor liability in respect of claims
against aladan corporation for product
manufactured prior to the acquisition 
of a substantial portion of its assets 
by the group in may 1996 the group
purchased insurance coverage for a
threeyear period to cover such risk
which expired on 10 may 1999
at the annual renewal of lig’ s product
liability insurance cover in 1999 the
insurance market had withdrawn 
cover for first injuryfirst exposure 
latex allergy claims occurring after 
may 1999 however the group had
subsequently negotiated an option 
to take insurance for claims in the 
usa alleging sensitivities and reactions
caused by wearing latexglove products
manufactured by the group the
directors remain confident of product
quality and the option was allowed 
to lapse in 2002
a provision exists as at 31 march 2003 
in respect of the amount of the potential
selfinsured element of existing and
continuing claims the directors believe
the provision is adequate however
depending on the outcome of the
uncertainties described above the
group may incur costs in excess of 
the amount provided
the group is a defendant in an action
brought by allegiance healthcare
corporation in the usa alleging 
false advertising and unfair business
practices in connection with the sale 
of regent surgical gloves the group
has successfully defended its position 
at trial allegiance has appealed the
decision which was vigorously opposed
by the group the appeal court’ s
decision is expected in summer 2003
the legal defence cost funding
arrangement agreed with the 
group’ s insurers remains in place
in march 2003 the group’ s us subsidiary
was named along with other leading 
us condom suppliers in a lawsuit in the
united states which alleges loss suffered
by a class of persons arising out of 
the purchase of spermicidallytreated
condoms the claim is one of loss 
of bargain not personal injury and
results from findings by the who 
that the ingredient nonoxynol9 may 
in some instances increase the risk of
hivaids the company has adopted
increased warnings on packaging and 
is vigorously opposing the lawsuit
the group is also a defendant in a
number of other lawsuits incidental 
to its operations which in the aggregate
are not expected to have a material
adverse financial affect on the group
in june 2001 it was reported that 
sales and preexceptional profits for 
the 25 months ending 31 march 2000 
had been overstated by £22 million 
and £19 million respectively as a
consequence a report was sent to 
the serious fraud office which is 
now conducting its own investigation
into the facts which gave rise to 
the overstatements
the group has been assisting the
competition authority in the uk 
with investigations into aspects of the
group’ s condom pricing strategy an
investigation initiated in may 2002 by
the office of fair trading into condom
supply to the nhs has been successfully
resolved and the oft has confirmed 
that it will not be taking the matter
further the oft continues to enquire
into the group’ s uk pricing strategy 
the directors believe that the group’ s
pricing policies comply with the
appropriate legislation in addition
while the risk of an adverse finding
cannot be totally excluded this is
unlikely to lead to a material impact 
on the group
29 principal group operating undertakings
country of registration
trading incorporation and operation
ssl australia pty limited australia
ssl healthcare oesterreich gmbh austria
nv ssl healthcare belgium sa belgium
ssl do brasil ltda brazil
ssl canada inc canada
ssl czeska republika sro czech republic
ssl danmark as denmark
ssl products limited england
london international group limited england
lrc products limited england
scholl limited england
scholl consumer products limited england
tubifoam limited england
ssl healthcare france sa france
ssl healthcare deutschland gmbh  co kg germany
london international gmbh germany
seton scholl hellas sa greece
simco limited guernsey
ssl healthcare hong kong ltd hong kong
ssl magyarorszag kft hungary
sslttk limited india
ssl healthcare ireland limited ireland
seton scholl italia spa italy
hatu spa italy
ssl healthcare italia spa italy
ssl healthcare japan limited japan
ssl healthcare malaysia sdn bhd malaysia
lrc hospital products sdn bhd malaysia
lrc malaysia sdn bhd malaysia
scholl mexicana sa de cv  mexico
ssl mexico sa de cv  mexico
ssl healthcare nederland bv netherlands
ssl new zealand limited new zealand
ssl healthcare norge as norway
london international norway as norway
ssl healthcare polska sp zoo poland
franco manufactura de luvas lda portugal
lrc laboratorios lda portugal
ssl romania srl romania
ssl healthcare singapore pte limited singapore
ssl slovensko spol sro slovakia
ssl healthcare manufacturing sa spain
ssl healthcare brands sa spain
ssl sverige ab sweden
ssl healthcare suisse sa switzerland
ssl manufacturing thailand limited thailand
ssl healthcare thailand limited thailand
lrc products ticaret ve pazarlama limited sirketi turkey
ssl americas inc usa
ssl us manufacturing llc usa
silipos inc usa ssl international plc 
annual report 2003
56 notes to the 
financial statements continued
29 principal group operating undertakings continued
country of registration
trading incorporation and operation
lig china bv people’ s republic of china
seton scholl overseas investments limited england
seton scholl uk limited england
seton prebbles limited england
seton investments limited england
scholl investments limited england
scholl uk limited england
ssl healthcare gmbh germany
seton scholl ireland holdings limited ireland
seton scholl international ireland ireland
new bridge holdings bv netherlands
scholl european holdings bv netherlands
ssl holdings inc usa
lrc north america inc usa
the group holds 100 per cent of the equity capital of the above companies with the
exception of sslttk limited in which the group holds 51 per cent and ttklig holds
the remaining 49 per cent
country of registration
associated undertakings incorporation and operation
new bridge hong kong limited hong kong
quingdao london international
latex company limited people’ s republic of china
ttklig limited india
the group holds 50 per cent of the equity capital of both new bridge hong kong
limited and quingdao london international latex company limited and 4987 
per cent of ttklig limited
 shares are held directly by ssl international plc
30 related party transactions 
associated companies 
in accordance with frs 8 related party
transactions are reported only with
parties outside the consolidated group
the group holds a 4987 per cent
interest 2002 4961 per cent in the
1414300 2002 1414300 rs 10
issued subscribed called and paid 
up equity shares of ttklig limited
specific transactions with ttklig
limited which are considered 
material are as follows
— t echnology transfer agreements 
— marketing and managerial
assistance for development 
of new and existing markets 
for ttklig limited 
— during the year ended 31 march
2003 the group received royalty
payments for technological know
how supplied to ttklig limited 
of £01million 2002 nil and
— during the year ended 31 march
2003 the group purchased 
£129 million 2002 £117 million
of finished goods for resale from 
ttklig limited 
31 derivatives and other financial
instruments 
the group’ s policies with regard to
derivatives and financial instruments 
are set out in the financial review on
pages 20 to 23 the group does not
trade in financial instruments short
term debtors and creditors have been
omitted from all disclosures other 
than the currency exposures
a interest rate risk profile of financial assets and liabilities 
the group held the following financial assets 
31 march 31 march
2003 2002
£m £m 
cash deposits and liquid resources 
sterling 357 261 
us dollar 13 09 
euro 216 182 
other 114 110 
total 700 562 
the cash deposits and liquid resources comprise deposits placed at call and terms 
not exceeding three months  ssl international plc 
annual report 2003
57
31 derivatives and other financial instruments continued
the interest rate profile of the financial liabilities of the group at the year end was
fixed rate financial liabilities 
weighted 
floating rate fixed rate weighted average period
financial financial average for which
total liabilities liabilities interest rate rate is fixed
£m £m £m  years 
at 31 march 2003 
sterling 2655 1414 1241 77 73 
us dollar 28 28 – – – 
euro 735 735 – – – 
other 202 202 – – – 
total 3620 2379 1241 77 73 
at 31 march 2002
sterling 2016 775 1241 77 83 
us dollar 609 609 – – – 
euro 748 748 – – – 
other 268 268 – – – 
total 3641 2400 1241 77 83 
elements of fixed rate debt maturing in less than one year are treated as floating rate debt for interest rate risk purposes the above table takes account of the effect 
of interest rate swaps on the currency and interest rate nature of the group’ s exposure the interest rates on floating rate financial liabilities in material currencies are based 
upon libor
b currency exposures
the table below shows the group’ s transactional currency exposures that give rise to the net currency gains and losses recognised in the profit and loss account 
such exposures comprise the monetary assets and liabilities of the group that are not denominated in the functional currency of the relevant local operating company 
involved other than the nonsterling borrowings treated as hedges of net assets in overseas operations
net foreign currency monetary assetsliabilities in £m
sterling us dollar euro other total
£m £m £m £m £m
at 31 march 2003 
functional currency of group operations 
— sterling – – 03 03 06
— us dollar – – – – –
— other 02 06 – 10 18
total 02 06 03 13 24 
at 31 march 2002
functional currency of group operations 
— sterling – 01 19 04 14 
— other 01 09 – 07 17 
total 01 10 19 11 03
the amounts shown in the table above take into account the effect of any forward contracts and other derivatives entered into to manage these currency exposures 
c maturity of financial liabilities and borrowing facilities
the maturity profile of the group’ s financial liabilities other than shortterm creditors such as trade creditors and accruals was as follows
2003 2002
£m £m 
in one year or less or on demand 1302 1334 
in more than one year but less than two years 124 75 
in more than two years but less than five years 292 276 
in more than five years 1902 1956 
total 3620 3641 
the group has various borrowing facilities available to it the undrawn committed facilities available in respect of which all conditions precedent had been met 
at the balance sheet date were as follows
2003 2002
£m £m 
in more than one year but less than two years – 300 
in more than two years but less than five years 342 110 
total 342 410 
notes to the 
financial statements continued ssl international plc 
annual report 2003
58 notes to the 
financial statements continued
31 derivatives and other financial instruments continued
d fair values of financial assets and financial liabilities
set out below is a comparison by category of book values and fair values of the group’ s financial assetsliabilities the fair values of financial assetsliabilities
are the discounted amount of future cash flows based on the group’ s current incremental rate of borrowing for a similar financial assetliability
2003 2002 
book value fair value book value fair value
£m £m £m £m 
primary financial liabilities held or issued to finance the group’s operations
short term financial liabilities and current portion of longterm borrowings 1302 1302 1334 1334 
longterm borrowings 2318 2590 2306 2325 
cash deposits and liquid resources 700 700 562 562 
derivative financial instruments held or issued to hedge translational currency exposure 
crosscurrency interest rate swaps – 209 – 62 
forward foreign currency contracts – 03 – – 
derivative financial instruments held or issued to hedge transactional currency exposure 
forward foreign currency contracts – 18 – 01 
e hedges 
gains and losses on instruments for hedging are not recognised until the exposure that is being hedged is itself recognised unrecognised gains and losses on instruments 
used for hedging and the movements therein are as follows 
2003 2002 
t otal net gains t otal net gains 
gains losses losses gains losses losses 
£m £m £m £m £m £m 
unrecognised gains and losses on hedges at 1 april 2002 2001 – 63 63 37 – 37 
gains and losses arising in previous periods that were recognised 
in 2003 2002 – 10 10 08 – 08 
gains and losses arising before 1 april 2002 2001 that were not 
recognised in 2003 2002 – 53 53 29 – 29 
gains and losses arising in 2003 2002 that were not recognised in 2003 2002 212 35 247 29 63 92 
unrecognised gains and losses on hedges at 31 march 2003 2002 212 18 194 – 63 63 
of which 
gains and losses expected to be recognised in 2004 2003 42 18 24 – 10 10 
gains and losses expected to be recognised in 2004 2003 or later 170 – 170 – 53 53 
32 pension costs 
the group continues to operate both defined benefit and defined contribution pension plans both in the uk and overseas all uk defined benefit schemes are closed 
to new entrants
ssap24 disclosures
uk pensions
a defined contribution schemes
since 1995 the group has operated a contractedin defined contribution scheme which is open to uk employees it also operates defined contribution executive pension 
plans for senior executives employer contributions are charged to the profit and loss account in the period in which they are incurred
the total pension cost for the group in respect of uk defined contribution schemes was £17 million 2002 £19 million
b defined benefit schemes
the group continues to operate a number of defined benefit schemes following the mergers of seton healthcare group plc and scholl plc to form seton scholl in 1998 
and the subsequent merger of seton scholl and lig in 1999 all uk schemes have been closed to new entrants and for future service accrual although a link to final salary
remains the finances of all schemes are assessed regularly by independent actuaries and all assets of the schemes are held in separate trustee administered funds the schemes
have provided benefits for employees as outlined below
i seton
prior to 1995 the group operated a defined benefit scheme for employees accrual of further servicerelated benefits under this scheme ceased in august 1995 but existing
benefits at that date are being maintained the most recent valuation was made by independent actuaries at 28 february 2000 the assumptions which have the most 
significant effect on the results of the valuation are as follows
— return on investments per annum 8
— salary increases per annum 6
— pension increases per annum 375
the actuarial value of the scheme’ s assets were £110 million the valuation showed that the scheme’ s assets were sufficient to cover 1003 per cent of the benefits that had
accrued to members after allowing for expected future increases in earnings there was no pension charge for the year for this scheme 2002 nil and there is no pension
prepayment or provision in the balance sheet as at 31 march 2003 2002 £nil ssl international plc 
annual report 2003
59 notes to the 
financial statements continued
32 pension costs continued
ii scholl
accrual of further servicerelated benefits under this defined benefit scheme ceased in august 2000 but benefits accrued to 31 august 2000 continue to be provided from 
the scheme the most recent valuation by independent actuaries was at 5 april 2000 the assumptions which have the most significant effect on the results of the valuation 
are as follows
— return on investments per annum 530
— salary increases per annum 5
— pension increases — pensions accrued to 6 april 1997 — closed section 3
— open section 225
— pensions accrued from 6 april 1997 — closed section 325
— open section 275
the market value of the scheme’ s assets was £258 million the valuation showed that the scheme’ s assets were sufficient to cover 105 per cent of the benefits that had 
accrued to members after allowing for expected future increases in earnings the surplus is being reduced by a reduction in employer pension contributions the total 
credit to the group in respect of this scheme was £01 million 2002 £01 million an amount of £11 million 2002 £11 million is included in prepayments
iii lig
accrual of further servicerelated benefits under this defined benefit scheme ceased in january 2001 but benefits accrued to 31 january 2001 continue to be provided 
from the scheme the latest actuarial valuation of the scheme was at 1 april 2000 the actuarial assumptions that have the most significant effect on the results of the 
valuation are as follows
— return on investments per annum preretirement 675
— return on investments per annum postretirement 525
— salary increases per annum 425
— pension increases
— accrued before 6 april 1997 200
— accrued after 6 april 1997 275
the market value of the assets was £1015 million which was sufficient to cover 80 per cent of the benefits that had accrued to members after allowing for expected future
increased in earnings this represents a deficit of £255 million when compared with the scheme’ s liabilities the deficit is being charged to the profit and loss account over 
the assumed average service life of the members the pension cost to the group in respect of this scheme was £36 million 2002 £35 million which includes a variation 
charge of £35 million 2002 £33 million all of which has been charged against operating profit an accrual of £03 million 2002 £11 million is included in the balance 
sheet at 31 march 2003
overseas pensions and similar obligations
the group has a number of pension schemes in different countries both defined benefit and defined contribution defined benefit schemes are set up under separate trust 
funds and liabilities are generally assessed annually in accordance with the advice of independent actuaries
there are no other significant post retirement benefits payable by any group company
frs17 disclosures
whilst the group continues to account for pension costs in accordance with statement of standard accounting practice 24 ‘accounting for pension costs’ under frs 17
‘retirement benefits’ the following transitional disclosures are required for the three defined benefit schemes in the uk as disclosed above plans in other territories are 
not material
the most recent valuation for each scheme as at the dates disclosed above were updated for frs 17 purposes to 31 march 2003 by independent qualified actuaries 
the principal assumptions used by the actuaries in determining the present value of the liabilities were
31 march 2003 31 march 2002 
seton scholl lig seton scholl lig
rate of increase in salaries 375 375 375 425 425 425
pensions increases per annum 250 – – 275 – –
— pensions accrued to 6 april 1997 — closed section – 300 – – 300 –
— open section – 188 – – 206 –
— pensions accrued from 6 april 1997 — closed section – 325 – – 325 –
— open section – 250 – – 275 –
— preapril 1997 – – 175 – – 200
— postapril 1997 – – 250 – – 275
discount rate applied to scheme liabilities 550 550 550 600 600 600
inflation assumption 250 250 250 275 275 275 ssl international plc 
annual report 2003
60 notes to the 
financial statements continued
32 pension costs continued
the assets in the schemes and the expected rate of return as at 31 march 2003 and 31 march 2002 were
31 march 2003 31 march 2002
longterm seton scholl lig longterm seton scholl lig
rate of return £m £m £m rate of return £m £m £m
equities 710 70 95 392 775 125 136 496 
corporate bonds 550 17 – 148 600 – – 74 
government bonds 460 27 70 213 525 30 74 319 
cash 375 01 – 18 400 – – 13 
property 610 – 09 – 670 – 09 – 
other 375 – 06 – 475 – 04 – 
t otal market value 115 180 771 155 223 902 
present value of scheme liabilities 149 212 1343 131 206 1268
deficitsurplus in the scheme 34 32 572 24 17 366
irrecoverable surplus – – – 24 17 – 
related deferred tax asset 10 10 172 – – 110 
net pension liability 24 22 400 – – 256
if frs 17 had been fully adopted the amount of the net pension liability and consequential effects on reserves would have been
31 march 2003
seton scholl lig 
£m £m £m
deficit at 31 march 2002 – – 366
contributions paid – – 44 
current service cost –– – 
past service cost –– – 
settlement cost –– – 
curtailment cost –– – 
other finance incomecost 03 – 14
actuarial loss 37 32 236
deficit at 31 march 2003 34 32 572
if frs17 had been fully adopted the net effect on service costs and consequently operating profit would be nil for all three schemes
if frs 17 had been fully adopted in these financial statements the pension costs for these defined benefit schemes would have been
31 march 2003
seton scholl lig 
£m £m £m
analysis of amounts included in other finance incomecosts
expected return on pension scheme assets 11 12 60 
interest on pension scheme liabilities 08 12 74
03 – 14
analysis of amount recognised in the statement of total recognised gains and losses
actual return less expected return on scheme assets 45 43 179
experience gain arising on scheme liabilities – 05 – 
changes in assumptions underlying the present value of scheme liabilities 16 11 57
gain on change in irrecoverable surplus – 17 – 
actuarial lossgain recognised in the strgl 61 32 236
adjustment due to surplus cap 24 – 
net loss recognised 37 32 236
history of experience gains and losses
difference between expected return and actual return on scheme assets 
amount £m 45 43 179
percentage of year end scheme assets 391 239 232
experience gains and losses on scheme liabilities
amount £m – 05 – 
percentage of year end scheme present value of scheme liabilities 0 24 0
t otal amount recognised in the strgl
amount £m 37 32 236
percentage of year end scheme present value of scheme liabilities 248 151 176 ssl international plc 
annual report 2003
61 notes to the 
financial statements continued
32 pension costs continued
if frs17 had been adopted in the financial statements the group’ s net assets and profit and loss reserve at 31 march 2003 would be  
£m
net assets 
net assets excluding pension liability 922 
net pension liability 446 
net assets including pension liability 476 
£m
profit and loss reserve 
profit and loss excluding pension liability 1039 
net pension liability 446 
profit and loss including pension liability 1485  ssl international plc 
annual report 2003
62
five year record
1999 2000 2001 2002 2003
ssl ssl ssl ssl ssl
note £m £m £m £m £m
turnover 6139 6999 6493 5924 6239
operating profit before exceptional items 866 1305 1160 541 820
finance charges net 136 192 247 256 225
profit before taxation and exceptional items 730 1113 913 285 595
net cash inflow from operating activities 1 1140 1105 1063 1197 1042
capital expenditure 293 394 477 410 185
shareholders’ funds 870 548 474 878 921
cumulative goodwill written off 2620 2264 2264 1524 1520
operating profit on sales before exceptional items  141 186 179 91 131
adjusted earnings per share before exceptional items pence 2 298 456 389 133 251
dividends per share pence 110 120 123 123 123
dividend cover times 3 22 37 29 08 18
average number of employees number 7734 7491 7877 7654 6928
interest cover times 3 64 68 47 21 36
share price period end pence 8550 5540 4800 5410 1660
in 1999 the table reflects the results of ssl for the 12 months ended 28 february 1999 in 2000 the table reflects the results of ssl for the 13 months ended 31 march 2000 
in 2001 the table reflects the results of ssl for the 12 months ended 31 march 2001 in 2002 the table reflects the results of ssl for the 12 months ended 31 march 2002 
the 2002 results were restated for the effect of prior year adjustments in 2003 the table reflects the results of the 12 months ended 31 march 2003
notes 
1 net cash from operating activities is stated before exceptional cash flows exceptional cash flows in 2003 exclude disposal proceeds of £57million 
the net cash outflow relating to exceptional items after taking into account disposal proceeds is £107 million see note 25 a 
2 earnings per share for 1999 2000 2001 2002 and 2003 exclude the after tax effects of the exceptional items and amortisation of intangible fixed assets 
3 interest cover and dividend cover exclude the effect of the exceptional items 
financial calendar
2003
15 july 2003
annual general meeting
4 september 2003
dividend payment
subject to approval
november 2003
interim results
 exact dates to be confirmed
2004
march 2004
interim dividend payment
may 2004
preliminary results
july 2004
annual general meeting ssl international plc 
annual report 2003
63
ssl directory
commercial
uk and eire
ssl international plc
35 new bridge street 
london 
ec4v 6bw
ssl international plc
canute court
t oft road 
knutsford
cheshire 
wa16 onl
ssl international plc
greenwich house
80 union street
oldham 
ol1 1dt
ssl healthcare ireland limited
a10
calmont park
ballymount
dublin 12
continental europe
ssl healthcare deutschland
gmbhcokg
edisonstrasse 5
63477 maintal
germany
ssl healthcare oesterreich gmbh
hutteldorferstrasse 46
po box 21 1151 vienna
austria
ssl hellas sa
17 kim spata avenue
p o box 17
19004 spata atlikis
athens greece
nv ssl healthcare belgium sa
bosstraat 79
1702 groot bijgaarden
belgium
ssl healthcare nederland bv
p o box 14
4140 aa leerdam
the netherlands
ssl czeska republica sro
karlovo nam 7
120 00 praha 2
vinohrady
czech republic
ssl magyarorszag kft
ho 1139 budapest 
vaci ut 95
hungary
ssl healthcare danmark as
soborg hovedgarde 94b
2860 soburg
denmark
ssl healthcare italia spa
via marco
emilio lepido 1785
40132 bologna
italy
ssl healthcare france sa
49 avenue georges
pomidou
92503 levalloisperret
france
ssl sverige ab
box 1326 5th floor
solna t org 3
17126 solna
sweden
ssl healthcare brands sa
t orre mapre — planta 28
marina 16—18
08005 barcelona
spain
ssl healthcare norge as 
nils harsenvei 2
0667 oslo
norway
ssl healthcare schweiz agsuisse sa
sternenhofstrasse 15a postfach 332
ch4153
reinach bl1
switzerland
ssl healthcare polska sp zoo
al krakowska 110114
00—971 warszawa
poland
lrc products ticaret ve pazarlama ltd
sti
yanarsu sokak tutku kanutlari
no 32 d4
8060 istanbul
turkey
lrc laboratories lda
rua rodrigues sampaco 97—31
150 lisbon
portugal
ssl romania srl
sos dudesti partelimon
nr 42 sector 3
bucharest
romania
lrc products limited
moscow rep office
radisson slavjanskaya hotel
moscow business plaza
berezhkovskay naberezhnaya 2
room 724
moscow 121059
russia
ssl slovensko spol sro
varsavska 29
83103 bratislava
slovak republic
americas
ssl americas inc
3585 engineering drive 
suite 200
norcross
georgia 30092—2820
usa
ssl canada inc
100 courtland avenue
concord
ontario l4k 3t6
canada
ssl mexico sa de cv 
guadalupe 1 ramirez  655
col las peritas
delegacion xochimilco
mexico df 16020
silipos inc
366 madison avenue
1600
new york
ny 10017
usa
asia pacific and rest of the world
ssl australia pty limited
225 beach road
mordialloc
victoria 3195
australia
ssl international — rep office
graha satria 2nd floor
jln rs fatmawati no 5
jakarta 12430
indonesia
qingdao london international
latex company limited
103 t aidong 1st road
qingdao 
prc 266022
ssl healthcare japan limited
urd building 
4th and 5th floor
275 shibuya
shibuya — ku
t okyo 150
japan
ssl healthcare hong kong limited
unit 1201a
12th floor
t ower 1 admiralty centre
18 harcourt road
hong kong
ssl healthcare malaysia sdn bhd
level 5 wisma samudra
no 1 jalan kontraktor u114
seksyen u1
hicom glenmarie ind park
40150 shah alam
selargor darul ehsan
malaysia
sslttk limited
6 cathedral road
chennai 600 086 india
ssl new zealand limited
co ebos group
243—249 bush road
albany
auckland
new zealand
ssl healthcare singapore pte limited
co harpers trading s pte limited
34 boon leat t errace
singapore 119866
ssl healthcare asia pacific
10f no 19 sec 5
jung shiay e road
taipei
taiwan
ssl healthcare  thailand limited
14th floor ocean t ower 1
170—42 new ratchadaphisek road
klong t oey
bangkok 10110
thailand ssl international plc 
annual report 2003
64
manufacturing and distribution
uk and eire
ssl international plc
tubiton house
brook street
oldham 
ol1 3hs
ssl international plc
unit n dales manor business park 
grove road
sawston
cambridge 
cb2 4tj
ssl international plc
unit 17 barncose industrial estate
wilson way
redruth
cornwall 
tr14 3rq
ssl international plc
whitehouse ind park
traynor way 
off shotton lane
peterlee 
co durham 
sr8 2ru
ssl international plc
amberley drive
sinfin lane
derby 
de24 9re
simco limited
braye road industrial estate
guernsey 
gy3 5xa
ssl international plc
group distribution centre m3
heywood distribution park
heywood
lancashire 
ol10 2tt
ssl international plc
group distribution centre
51—52 stakehill distribution centre
finlan road
middleton 
m24 2sj
continental europe
franco manufactura de luvas lda
zona industrial apartado 41
3350 vila nova de poiares
portugal
ssl healthcare manufacturing sa
avenida can fatjo 151
08191 rubi
barcelona
spain
americas
silipos inc
7049 williams road
niagara falls
new york
usa
asia pacific and rest of the world
ssl manufacturing thailand limited
wellgrow industrial estate
100 moo 5 bangna — trad road
km36 bangsamak
bangpakong
chachoengsao 24180
thailand
ttklig limited
20 perali road
virudhunagar — 626 001
india
ttklig limited
35 old trunk road
pallavaram
chennai 600 043
india
lrc hospital products sdn bhd
p o box 52 lot 9
lorong perusahaan 4
kulim ind estate
0900 kulim
kedah
malaysia
lrc malaysia sdn bhd
p o box 7
kulim industrial estate
09000 kulim
kedah
malaysia
research  development
uk and eire
ssl international plc
tubiton house
brook street
oldham 
ol1 3hs
ssl international plc
205 cambridge science park
milton road
cambridge
cb4 4gz
americas
silipos inc
7049 williams road
niagara falls
new york
usa
asia pacific and rest of the world
lrc hospital products sdn bhd
p o box 52
lot 9 lorong perusahaan 4
kulim industrial estate
09000 kulim
kedah
malaysia 
ssl directory continued designed and produced by 
williams and phoa
printed in the uk on paper made 
from 50 per cent pulp 50 per cent
recycled fibres which is biodegradable
secretary and registered office
jonathan d jowett
35 new bridge street 
london 
ec4v 6bw
stockbrokers
cazenove  co
20 moorgate
london 
ec2r 6ba
credit suisse first boston
one cabot square
london 
e14 4oj
auditors
kpmg audit plc
8 salisbury square
london 
ec4y 8b3
solicitors
allen  overy
one new change
london 
ec4m 9qq
dla
101 barbirolli square
manchester 
m2 3dl
principal bankers
barclays bank plc
north west large 
corporate banking
51 mosley street
manchester 
m60 3dq
registrars
capita irg plc
the registry
34 beckenham road
beckenham
kent
br3 4tu
public relations advisers
the maitland consultancy
12th floor
orion house
5 upper st martins lane
london 
wc2h 9ea
the following are trade marks 
of the ssl group
avance avanti biogel cuprofen derbac
diana dr scholl’ s durex durex play 
durex sensation eulactol full marks
gelactiv hibi hibiderm hibiscrub 
hydragel indicator  lyofoam marigold
meltus mister baby  natraclear  optifit
paramol performa ralgex regent
remegel resolve sauber  scholl scholl
flight silipos socks syndol skinsense
super sensitive t ubifast t ubigrip
woodward’ s
company information address
ssl international plc
35 new bridge street
london
ec4v 6bw
telephone
44 020 7367 5760
facsimile
44 020 7367 5790
web
wwwsslinternationalcom
registration number
388828


Summary:
 ssl international plc 
annual report 2003
02
chairman’ s message
results
the results for the year show that
three key objectives were achieved
sales recovered as our decision to
cease trade loading was vindicated
costs were reduced in both the
product supply and group overhead
areas increasing preexceptional
operating profit by 52 per cent to
£82 million and significant free cash
flow was generated enabling the
dividend to be maintained and fully
covered for the first time since the
merger with scholl in 1 998
our sales in the year grew five per
cent to £624 million our gross
margin grew to 58 per cent and our
operating margin before exceptional
items achieved our target of over 
1 3 per cent earnings per share 
were 1 31 pence compared 
to a loss of 7 pence last year 
dividend
y our board is recommending 
an unchanged final dividend of 
84p making a total for the year  
also unchanged of 123p the final
dividend will be paid on 4 september
2003 to shareholders on the register
on 8 august 2003
strategic development
during the year  the board completed
a thorough review of the group’ s
operations its strengths and
weaknesses and its opportunities 
for delivering shareholder value
growth in the future on the basis 
of the review we concluded that
shareholder’ s interests would best 
be served by focusing resources on
our consumer healthcare businesses
which includes the durex and scholl
brands and by divesting our medical
business as well as our industrial
gloves business 
ian martin
chairman
03 131
02 70
01 135
basic earnings per share pence
03 123
02 123
01 123
dividend per share pence
we have now completed our second full year 
as a new management team and i am pleased 
to report excellent progress in returning the group 
to financial health and in developing our strategy 
for the future based on the strength of durex 
scholl and our other consumer healthcare brands ssl international plc 
annual report 2003
03
directors
in april andrew slater  who became 
a director in 1999 following the
merger with london international
group resigned from his position 
as managing director of the
european operations andrew 
had been with the group for nearly
21 years and has held a number 
of senior operational roles in the 
uk and overseas his contribution
and energy will be missed and we
wish him well in the future
in may  alain strasser our non
executive director resident in france
resigned from his nonexecutive post
recognising that a recent increase 
in his other international activities
meant that he could no longer give
sufficient time to his duties at ssl
alain’ s experience and counsel was 
of great value to the group and 
he goes with our best wishes 
for future success
outlook
the current year presents the twin
challenges of completing the major
disposals and driving forward the
profitability and growth of our
consumer business this will involve
both highly creative marketing and
selling and major cost reductions in
corporate overheads the new year
has begun satisfactorily and we are
confident that these challenges will
be met successfully  in both the
current year and into the future
ian martin chairman
4 june 2003
chairman’ s message continued
the medical portfolio includes 
regent surgical gloves hibi antiseptic
and the wound management
business collectively amounting 
to £1 82 million in sales in the year 
to 31 march 2003 this divestment
process is now well underway and
has generated a substantial level 
of interest
completion of these disposals will
give management the opportunity 
to focus on the consumer business
here there are encouraging signs
that the increased flow of new
products backed by strong
advertising is yielding results 
greater financial resources resulting
from the divestment will drive 
further development this coupled
with a continuing strong focus 
on cost control will we believe 
lead to significantly enhanced
shareholder value