ssl international plc
annual report and accounts 2007
ssl international plc  annual report and accounts 2007
registration number
—
388828
ssl international plc
35 new bridge street
london ec4v 6bw
t el 44 020 7367 5760
fax 44 020 7367 5790
wwwsslinternationalcom designed by pauffley
printed by royle corporate print a carbonneutral
®
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the paper used for this report contains up to  50 recovered
fibre which is biodegradable all pulps are sourced from fully
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credited with iso 14001 environmental management systems
whether it’s a new condom designed to
provide greater sensation a cream that
helps repair cracked heels or a pair of shoes
that make walking more comfortable we
strive to create better experiences for
people around the world
01 financial highlights
02 ssl at a glance
04 chairman’s message
05 chief executive’s review 
08 our brands
16 business review
—
our brands
—
our business processes
—
our people
24 corporate responsibility
28 financial review
32 board of directors
33 corporate governance
36 risks and uncertainties
38 directors’ report
39 remuneration report
46 statement of directors’ responsibilities
47 independent auditors’ report
48 consolidated income statement
49 consolidated balance sheet
50 consolidated statement of recognised 
income and expense
51 consolidated statement of cash flows 
52 notes to the consolidated financial statements
85 principal group undertakings 
86 company balance sheet
86 company statement of total recognised gains and losses
87 company accounting policies 
89 notes relating to the company accounts
94 ssl directory
96 company information
96 financial calendar meeting 
our targets
01
financial highlights
8 
sales growth
1
driven by durex 
and scholl footcare
19 
operating 
profit growth
2
double digit
percentage growth
£469m
profit before tax
increase of 31
47p 
final dividend
increase of 7 
making a total of 
68p for the year
sales
200607 adjusted
1
£m growth 
durex 187 1 17 5
scholl footcare 1000 62
scholl footwear 668 18
locally owned brands 723 04
t otal branded consumer 4262 88
other 54049
t otal sales 4802 84
17 1p
earnings per share
increase of 34
£89m
net debt
after £19m china
acquisition
1
adjusted sales growth is calculated after adjusting for currency movements and including durex sales in the final quarter 
from the china acquisition of £25 million
2
adjusted operating profit growth is calculated after adjusting for currency movements and including operating profit in 
the final quarter from the china acquisition of £14 million 02
—
03
ssl at a glance
a world 
of brands
ssl is a focused consumer brand
company with leading global brands 
—durex and scholl plus a diverse 
portfolio of local brands 
we operate in over 35 countries
worldwide and sell into over 100 different
markets our business is managed in
three commercial divisions—europe 
asia pacific and the americas
—
scholl cracked heel repair cream
—
durex play wand
—
durex play vibrations
—
scholl moisturising mousse
—
durex pleasuremax
—
scholl party feet
—
syndol
and scholl footwear sales by geography
1 europe 78
2 asia pacific 16
3 americas 6
durex continues to move forward
with its vision of becoming the
world’s number one authority on
sexual wellbeing and is dedicated to
inspiring people to have better sex 
durex condoms— with over 30 per cent
of the global branded condom market
making it the number one condom
brand in the world durex condoms
continue to go from strength to strength
with new product introductions such as
durex tingle and durex pleasuremax
durex play lubricants—designed to
enhance people’s sex lives by increasing
lubrication the range is widened to
include lubricants with warming and
tingling sensations
durex play devices—a range of
personal massagers including the new
durex play vibrations—an innovative
vibrating ring—are designed to help
people have happier healthier and
more fulfilling sex lives
specialist scientific and 
insightful scholl footcare products
and footwear ranges recognise 
that taking care of people’s feet
contributes to improving their
overall comfort and wellbeing
scholl footcare—by listening to
consumers to understand their needs
and developing new products to meet
these needs scholl footcare continues
its programme of consumerled
innovation recent additions to the
product range are cracked heel repair
cream—clinically proven to soothe
and rehydrate cracked heels within
seven days—and freeze verruca 
wart remover based on the latest
freezing technology
scholl footwear—traditionally sold 
in pharmacies throughout europe to
help solve foot and back problems 
with the core styles of pescura adapta
and gelactiv the footwear range is
expanding in a limited number of high
street retailers in partnership with
leading designer diego dolcini
ssl ’s range of local brands 
continues to play an important part
in achieving our operating profit
objectives by improving overall
sales and distribution efficiencies
in the uk the overthecounter ‘otc’
product portfolio includes an adult oral
analgesic range cuprofen paramol
and syndol as well as  a range of cough
and cold remedies such as meltus cough
mixture and the children’s analgesic
medised in italy  the local brand
portfolio includes mister baby  a range 
of mother and baby products and
sauber  a range of hosiery and other
beauty products
sales by brand
1 durex 39
2 scholl footcare 21
3 scholl footwear 14
4 locally owned brands 15
5 others 1 1
1
2
3
1
2
3
4
5 04
—
05
chairman’s message
chief executive’s review
“the board is recommending 
an increased final dividend 
of 47 pence”
gerald corbett
chairman
full year growth of 18 per cent this has been driven largely
by strong performance of our european business offset 
by weaker performance in japan and thailand where the
market is based on low prices and is subject to high levels 
of local competition in europe we have shown that we can
provide welldesigned stylish shoes that take care of feet
whilst also expanding distribution outside the traditional
pharmacy sector sales of our locally owned brands were
broadly the same as last year other sales grew by 49 per
cent on an underlying basis as a result of increased sales 
of unbranded condoms  
operating profit for the year was £561 million meeting the
target of double digit operating profit growth and as a result
basic earnings per share increased by almost 34 per cent 
to 17 1 pence
dividends
the board is recommending an increased final dividend of
47 pence 68 per cent ahead of last year the total dividend
for the year of 68 pence is covered 25 times the final
dividend will be paid on 6 september 2007 to shareholders
on the register on 10 august 2007 
outlook 
the new year has begun satisfactorily given our progress
over the last three years and the strength of our brands we
remain confident of meeting the financial target that the
group set last year of delivering annual double digit growth in
operating profit in each of the financial years to march 2009
we believe this can be achieved through a combination of
continued investment in our brands driving further sales
growth and tight control of overheads
on behalf of the board i would like to thank our ssl colleagues
throughout the world our success would not be possible
without their efforts
it has been a very encouraging year  we again increased
the investment behind our brands durex and scholl
our new product development programme kicked 
in successfully  w e saw strong earnings and revenue
growth and we successfully integrated our chinese
acquisition our cashflow performance was also
particularly satisfying
underlying sales excluding china grew 7 8 per cent and total
sales including china’s last quarter sales of £25 million grew
by 84 per cent this was driven by durex through continued
expansion of the play range and further excellent growth in
condom sales and scholl footcare where the successful new
product introductions of cracked heel repair cream and
freeze verruca  wart remover produced a strong result
currency adjusted sales from durex and scholl footcare
grew by 17 5 per cent and 62 per cent respectively
as expected sales of scholl footwear have shown modest garry watts
chief executive officer
which will enhance people’s sex lives and contribute to 
their general wellbeing the durex range has been extended
considerably over recent years and now includes premium
condoms such as performa and pleasuremax vibrators
such as the play vibrations vibrating ring and a range of
personal lubricants
q how are you driving the growth of scholl footcare
gw the strong performance by scholl footcare this year
comes from a combination of consumerled innovation
wellexecuted implementation and effective advertising
our new products are supported where appropriate by
strong clinical trial data for example freeze verruca  wart
remover which has been proved to be as successful as 
the freezing treatment used by healthcare professionals
also we took the decision this year to bring forward around 
£6 million of our advertising expenditure to the first half 
of the year to ensure we timed our advertising campaigns 
to get the most out of our investment
q slower growth has been reported for scholl footwear
than in your other global categories why is this
gw as we have said before our focus over the past two
years has been to develop our european footwear business
which represents the clear majority of the whole we are
seeing pleasing results in this division as sales in europe grew
by 57 per cent however we have seen a decline in japan
and thailand where there is a high level of competition and
low pricing
q y ou have embarked on a programme to
implement a new it system throughout europe 
why has this been necessary
gw the evolution of ssl has meant that it systems 
across the group whilst robust on a standalone basis 
are disparate thus creating complexity and a lack of visibility 
of information on a groupwide basis implementing sap
q are you satisfied with the progress you have made
this year
gw absolutely last year we set a new financial target 
after virtually achieving our previous target a year early our
new target is to achieve double digit operating profit growth
in each of the three years to 200809 and in this the first 
year we achieved operating profit growth of 19 per cent 
by continuing to invest in our brands and maintaining a tight
control of the cost base we fully expect that we will achieve 
our target in each of the next two financial years
q durex continues to show very strong growth 
what are the key drivers of this
gw the durex brand is evolving it is becoming the number
one authority on sexual wellbeing through consumer
studies and surveys such as the sexual wellbeing global
survey we have obtained indepth insight which gives us a
unique dataset about consumers’ sexual needs from this
base we can continue to innovate and launch new products
sales
0607
0506
0405
at constant exchange rates
£4802m
£443 1m
£4237m
operating profit
0607
0506
0405
at constant exchange rates
£56 1m
£47 2m
£400m 06
—
07
chief executive’s review continued
our strategy
“by continuing to invest in our
brands and maintaining a tight
control of the cost base we fully
expect that we will achieve our
target in each of the next two
financial years”
q y ou have continued to place investment in people 
as a priority for ssl why is this so important to you
gw ssl’s people are its greatest strength attracting
motivating and retaining them is key to our future  business
success we have considerable breadth and depth of
management expertise in ssl and we continue to invest 
in training and development programmes to help all our
people maximise their potential and their contribution 
to the business
creates a single stable it platform giving greater efficiency
increased responsiveness and more accurate information
t o date eight of our european markets have implemented
sap with good results and we expect the rollout across
europe to be complete by 2009 
q y ou have previously stated that you are keen to 
make acquisitions how is this progressing
gw in january this year we completed the acquisition 
of our joint venture in china for £192 million this is an
important step to ensure that we realise the full potential 
of durex and scholl in the rapidly expanding chinese
consumer market so far we have appointed distributors to
cover four major regions which together have a population
of around 117 million we have strengthened our local
management team we have established a sales and
marketing office in shanghai and have introduced scholl
party feet to the market we expect china to be a major
growth market for ssl over the next few years in addition
we continue to look for suitable acquisition opportunities 
in europe and elsewhere in asia pacific
q what is your attitude to returns to shareholders
gw three years ago having completed the disposal
programme we took the deliberate step to rebase the
dividend since then we have seen strong growth in
profitability and we have been very pleased to increase
dividends payable to shareholders over that time we are
proposing a final dividend for 200607 of 47 pence per
share a 7 per cent increase over last year  we believe we can achieve 
our targets through a
combination of
—
consumer insightled
innovation
—
cutting edge advertising
—
investing in efficient
business processes
—
the training and
development of our people
our strategy
ssl ’s business strategy
we aim to exploit the economic potential of both our brand
portfolio and our global operating assets by focusing on 
—
consumer insightled innovation
—
cutting edge advertising
—
efficient business processes
—
training and development of our people
ssl ’s culture
we are committed to our vision that ssl should become
and remain successful socially responsible and lively
through the application of our operating principles
—
attitude
—
behaviour
—
culture
ssl brands
ssl’s brands are innovative high quality and premium
products they have been developed and adapted in
response to consumer needs and 21st century lifestyles 
our international portfolio successfully blends the very best
of old and new building on the heritage and history of brands
like durex and scholl with stateoftheart technology  intensive
consumer research and creative marketing support 
for more information on our portfolio of brands and the
benefit they bring to our consumers please turn the page 08
—
09
our brands
—
durex
durex
durex has been making condoms of the highest quality
for nearly eighty years and has further strengthened 
its position as the global market leader over the past 
12 months
expanding the range
going from strength to strength the condom range has been
extended to include the increasingly high profile durex play
products—lubricants vibrators and a vibrating ring
this broader product portfolio is at the heart of durex’s
repositioning from a condom brand offering safer sex to 
a sexual wellbeing brand offering consumers the promise 
of better sex the challenge now is to ensure there are
products in the portfolio for people of all ages lifestyles 
and lifestages—an estimated 3 billion people are sexually
active worldwide
consumer insight
consumer insight is essential and has always been an
important way of adding to the brand’s body of knowledge
about consumers’ sexual needs and supporting new
product development ‘npd’ this year durex has invested
heavily in an online global sexual wellbeing study obtaining
responses from 26000 people in 26 countries about all
aspects of their sex lives  
we must tap into this major marketing opportunity by
making durex relevant to everyone consumers who want 
to practise safer sex can access the highest quality condoms
to give them confidence to have happier and healthier sex
lives and people who want to add fun and excitement to
lovemaking can buy a vibrator vibrating ring or one of our
range of lubricants
the aim has been to understand sexual wellbeing in a holistic
way supporting durex’s overall strategic development and
helping it to achieve its stated objective of becoming the
world’s number one sexual wellbeing brand quivering pleasure 
durex play vibrations
sales of the innovative new vibrating ring durex play
vibrations have really taken off in the last year now 
available in 35 countries across the globe play vibrations
has been a success story for ssl and has helped to 
pioneer the acceptance of sexual wellbeing products 
in mainstream outlets
last autumn saw highly successful tv advertising support
for play vibrations in a number of european countries
including poland hungary and the uk sales have been
further boosted by extremely positive coverage in magazines
ssl is continuing to invest in this product and an improved
next generation ring recently became  available in all markets
something for everyone from
condoms to lubricants to play
devices the durex range has it all 10
—
11
our brands
—
scholl footcare
scholl
footcare
while scholl footcare continues to take strides towards
its strategic vision of becoming the world’s leading 
foot health and wellbeing brand its ‘foot science 
made relevant’ philosophy lies at the heart of everything
scholl does
scholl offers a unique combination which ensures it still
leads the way in effective npd and brand building an
unmatched knowledge of the anatomy physiology and
pathology of the foot together with an indepth understanding
of consumers’ needs
new products and new markets
the reasons behind the brand’s recent success include
innovation across all the main product categories expansion
into new channels in key markets and strong abovetheline
support for hero product launches this year has seen
innovative product launches across a number of the 
core footcare categories starting with the unveiling of the 
new nonslip scholl party feet gel cushions which provide
invisible and secure cushioned comfort for high heel wearers  
on the pampering front scholl has launched two new
products an intensive moisturising mousse and scholl 
foot  nail cream—positioned as the ultimate everyday
moisturiser for hardworking feet
scholl freeze verruca  wart remover has been launched
successfully in many ssl markets this innovative product
which uses freezing technology to eliminate warts and
verrucas is clinically proven to be as effective as the freezing
treatment used by healthcare professionals freeze has 
also benefited from a strong investment in tv and print
advertising in many markets—as has another exciting new
product scholl cracked heel repair cream
moves into new distribution channels most notably a sales
drive into pharmacies across key european markets are 
also proving crucial for scholl’s continued sales success whether you want to repair tired or
damaged feet or dance in comfort all night
long—look no further than scholl footcare
love your feet
scholl cracked heel repair cream
now available in many ssl markets scholl cracked heel
repair cream was launched in spring 2006 following robust
clinical trials
fast results
clinically proven to repair dry rough and cracked heels in 
just seven days this innovative new formulation has been 
a major sales success in many countries and it certainly
lives up to its product claims with a significant number of
consumers calling the scholl consumer careline to confirm
how well and how quickly it works
already the market leader in italy and with significant sales 
in the uk scholl cracked heel repair cream has also helped
boost scholl sales and market shares elsewhere in europe
as the product has been rolled out into other ssl markets
significant investments have been made in promotional
campaigns ranging from tv advertising in the uk and france
to print advertising window displays and intensive pointof
sale activities in key pharmacy grocery and supermarket
outlets in other countries 12
—
13
our brands
—
scholl footwear
scholl
footwear
footwear has a key role to play in supporting the scholl
brand vision of becoming the world’s number one foot
health and wellbeing brand enabling people across the
globe to enjoy healthier  more comfortable and better
looking feet
optimising retail distribution is a key contributor to sales
success for scholl footwear and clear strategies have been
identified and implemented for each channel pharmacies
have long since been the heartland for this brand and with
outlets across europe accounting for the majority of sales
the marketing focus continues to be on protecting and
growing this channel
understanding consumers
consumers in this sector often have specific foot health 
and comfort needs one of the challenges for scholl is to
understand the needs of this unique consumer base 
ensure the footwear range provides solutions and brief 
the pharmacists so they can communicate the shoes’ 
key features and benefits this strategy will particularly 
help support new sales drives into the pharmacy sectors 
in countries like spain and germany
expanding distribution
and while pharmacy remains the brand’s most important
retail sector offering scholl products which provide support
and comfort expansion into shoe shops and fashion outlets
continues apace here the focus is on style and comfort
including a premium priced high fashion footwear range
backed by the designer credentials of diego dolcini
this new scholl footwear range has been designed to gain
entry into trendsetting shoe retailers around the globe paving
the way for more mainstream scholl designs to follow next
season for the pharmacy trade it’s the gelactiv range that
spearheads the springsummer 2007 collection featuring 
the innovative scholl gelactiv technology these products 
are the epitome of comfort pliable soothing and supportive shock absorbing
scholl gelactiv range
the scholl gelactiv range was relaunched for the
springsummer 2007  the range provides unique comfort
benefits with fresh styles appealing to women across all 
ages with different lifestyles
comfortably stylish
based on gel technology the gelactiv range of shoes has 
a special gel cushion placed in the heel area of the shoes
the gel cushion absorbs the shock generated from the
impact of walking and provides cushioning to the heel 
in addition thanks to the temperature control properties 
of the gel gelactiv footwear helps keep feet fresh
the range is sold in pharmacies in most european countries
and has also helped to reestablish the scholl footwear 
brand in high street stores in the uk and scandinavia the 
best selling gelactiv styles in springsummer 2007 were
jingle and groovy 
scholl shoes are designed to our own foot
health principles —without losing anything 
in style design or quality 14
—
15
our brands
—
local brands
local brands
our diverse portfolio of local brands is countryspecific
and ranges from woodward’s gripewater which is
popular in hong kong to sauber hosiery and beauty
products which are available in italy to a range of adult
and children’s analgesics sold in the uk 
developing the portfolio
in the uk otc products account for 40 per cent of ssl ’s 
sales and continue to be an integral and vital part of ssl ’s
portfolio paramol painkillers and medised pain and fever relief
for children are the fastest growing brands in their respective
markets while sales of syndol—a fast acting painkiller and
muscle relaxant—have grown by 38 per cent in the last four
years on the back of a highly effective advertising strategy 
and the role which local brands can play in making significant
contributions to overall growth is increasingly being 
recognised by other markets in particular the asia pacific
management team is focusing on how the business can 
be grown outside of the core durex and scholl brands 
with presentations and discussions concentrating on 
ssl’s smaller brands including eulactol woodward’s 
and coppertone they agreed how to maximise overall 
sales and profit potential a clear message was sent out 
achieving success with these brands can make the
difference between good and outstanding growth
local market leaders
back in the heart of europe italy is adding to its portfolio 
of local brands with the new realcheck home diagnostics
range in addition their well established local brands
continue to go from strength to strength with the focus 
here very much on the success of mister baby the
extensive portfolio of mister baby products designed to
satisfy the needs of new mums babies and toddlers has
historically been available exclusively in pharmacies but 
is now increasingly expanding into specialist stores and
mass market channels a unique range of otc 
products from painkillers 
to cough remedies to 
mother and baby products
child’s play
mister baby
after many years of success in italian pharmacies mister
baby has added still further to its image profile and sales 
in recent months by consolidating its presence in new
distribution channels
while pharmacy sales continue to grow the brand has also
moved into a range of specialist and mass market outlets
across the country and the next distribution challenge will
be ecommerce this multichannel strategy has been
designed to maximise opportunities and minimise risks
making the products more widely and easily available to
italian mothers and while differentiation is the key with
products and ranges being tailored to each sector positive
brand values and perceptions remain consistent across 
the board mister baby—well known expert reliable
successful and effective npd is also vital for the wellbeing 
of the brand and selected hero products continue to be
backed by tv and print advertising highly targeted sampling
website activity exhibition work and activities in partnership
with supportive paediatricians and obstetricians   16
—
17
business review
“the desire and drive for
innovation is central to 
ssl ’s growth strategy”
three core areas
one approach
our brands
investing in our brands—innovation and advertising 
the desire and drive for innovation is central to ssl’s growth
strategy and we recognise that the ability to innovate
successfully on a longterm basis will drive growth in 
the future with this in mind innovation begins with our
consumers and listening to what they require from our
brands to help them lead better lives—whether this is
enabling them to walk more comfortably with scholl
footcare and footwear or to enjoy happier and more 
fulfilled sex lives with durex products
bringing scientific experts closer to our consumers and
enabling them to fully understand their needs has contributed
greatly to the generation and development of a stream 
of new products this has meant that our new product
introductions are wellfounded on consumer insight have
high efficacy levels and where appropriate are supported
by strong clinical trial data
supporting the launch of new products by investing in
effective and targeted advertising is a key part of the
success of our brands specific marketing plans are
developed to reach customers and consumers through 
tv and print advertising pr promotional materials
sampling and merchandising—all of which increase
consumer awareness and help drive retail distribution 
over recent years we have invested around 15 per cent
of sales in our global and local brands which has helped 
drive our sales growth this means that our investment 
in advertising has increased in absolute terms going
forward we expect to maintain a similar level of investment 
in advertising and promotion as a percentage of sales
business review
t o exploit fully the economic potential of our brand
portfolio and our global operating assets we must focus
on and measure performance in three core areas
—
our brands growing sales through consumer insight
led innovation cutting edge advertising expanding
distribution in existing markets and further establishing 
our presence in developing markets
—
our business processes improving our business
processes through the implementation of a standard 
it system and seeking further operational efficiencies
throughout the supply chain to ensure we are meeting 
the needs of our customers whilst controlling cost 
—
our people our employees are one of our greatest assets
and through continued development programmes we 
aim to strengthen the expertise across our business and
provide an environment which cares for the health and
wellbeing of our people t op scholl freeze verruca  wart remover
tv advertising 
bottom durex play range print advertising
delivering winning products
in the development of one of our latest scholl footcare
products freeze verruca  wart remover we were able to
combine our approach to innovation and strong advertising
campaigns to deliver a winning product 
with a thorough understanding of the market we identified
an opportunity to provide an effective home treatment 
for the safe removal of verrucas and warts using the latest
available freezing technology scholl was able to launch
freeze verruca  w art remover in the uk france germany
and australia during the summer of 2006 in pharmacies 
and supermarkets clinical trials have proved that this
product is as effective as the freezing treatment used by
healthcare professionals 
supported by tv advertising targeted at mothers for
treatment of their children’s verrucas the launch was extremely
successful generating sales of £47 million w e plan to continue
the rollout of this product in other markets during 200708
expanding our distribution 
increasing distribution through existing channels and
developing new distribution opportunities underpins the
ability to grow sales through innovation and eff ective advertising
nationwide distribution
in october our japanese business entered into a
distribution agreement with schick part of energiser
holdings to provide full selling and distribution services 
in japan we are able to benefit from a well established
high calibre sales operation which has strong longterm
relationships with trade customers on a nationwide basis
pharmacy opportunities
as we continue to bring to market new and innovative
products it is imperative that we have the appropriate
awaiting image
awaiting image
advertising and promotion expenditure
0607
0506
0405
at constant exchange rates
£707m
£680m
£649m 18
—
19
business review
“the explosion of the chinese
consumer market represents 
a real and exciting opportunity
for durex and scholl”
t op garry watts chief executive 
interview in chinese consumer magazine
‘modern weekly’
bottom mark luscombe ssl’s general
manager in china presenting to employees
salesforce structure so that we can better analyse our
customer base focus the efforts of our salesforces and
expand distribution our french management team took the
decision that they could accelerate sales growth and launch
products more quickly by additional investment to increase
and strengthen their pharmacy salesforce by increasing 
the number of pharmacy field sales representatives they
have started a programme to achieve significant distribution
gains whilst also developing their major customer accounts
establishing our presence in developing markets 
the explosion of the chinese consumer market represents
a very real and exciting opportunity for ssl with a population
of 13 billion and an estimated 300 million consumers china
represents untapped potential for both the durex and 
scholl brands
we have successfully manufactured durex condoms in 
china since 1998 working with our former chinese joint venture
partner in that time together we have achieved market
leadership with durex and identified further opportunities to
increase sales growth more rapidly t o ensure that we realise
the full potential offered in china and with our experience and
knowledge of the market we decided to invest and to take full
control of the operations there in january this year  we acquired
the remaining 50 per cent of the business for £192 million 
full ownership gives ssl total control over marketing and
building the existing brands while working closely with our new
distribution partners initially  the focus will remain on developing
the durex brand as a key challenge is to manage the
distribution model and being independent we can ensure that
we introduce new products to the market more quickly  once
our distribution network across major cities and towns is more
established our objective is to introduce and develop scholl
footcare products on a much wider scale such that it follows in
the footsteps of durex to become a major brand in china t o coincide with chinese new year we celebrated our
acquisition with our employees in china introducing them
to ssl’s global organisation our culture and outlining the
major opportunities that lie ahead
our business processes
building a platform for growth 
a key element in our approach to improving the efficiency of
our business processes is the implementation of a standard
it platform ‘sap’ across all our commercial markets and
manufacturing facilities worldwide 
the history of ssl’s creation and evolution has resulted in 
a legacy of different and ageing it systems in many parts of
the business which are currently operating on a standalone
basis t o take ssl to the next level it is critical that our current
business processes are simplified it systems are fully
integrated and best practice is shared across the group
creating a single stable platform will provide the benefits 
of greater efficiency shorter delivery lead times increased
responsiveness and more accurate information this will
result in faster decisionmaking and improved customer
service and working capital management throughout 
the group—providing a platform for growth for ssl we
recognise the risks associated with the implementation of
any new it system and we are managing the process to
mitigate these risks as much as possible through careful
project management and a gradual rollout of the new system
the first phase of the project is to implement sap in
european commercial markets and to date we have
successfully gone live in eight countries we expect to
“a single it platform will provide
greater efficiency increased
responsiveness and more
accurate information”
t op ssl’s group it director peter
whitehurst and his team discuss the next
phase of sap implentation across europe
bottom european sap implementation plan
completed
—
holland belgium scandinavia
germany austria and switzerland
2007
—
uk and spain
2008
—
france italy greece and t urkey
2009
—
eastern europe 20
—
21
business review 
t op and bottom condom testing and
packing at ssl’s condom manufacturing
facility in thailand
complete this first phase by 2009 we are then extending 
the implementation of sap to our manufacturing facilities
worldwide and indeed have been able to bring forward
implementation in our indian joint venture factories to
summer 2007  the final phase will be implementation in 
our commercial businesses in asia pacific and the americas
supplying our customers 
efficient supply of high quality product is an essential 
part of ssl’s success the overall supply process must be
managed effectively adhering to international standards 
of manufacture and ensuring delivery of the correct order 
to our customers at the right time
the overall process starts and ends with the consumer 
who buys our products from our customers—the retailer
our commercial teams in all our markets work closely with
the retailers to obtain and interpret transactional information
using this data ssl’s commercial teams comprising 
sales marketing and logistics specialists work together to
develop sales forecasts and stock requirements taking into
consideration current stock levels future promotions and
advertising campaigns 
stock requirements from each market are consolidated 
at a global level and a sourcing plan is developed taking into
consideration such factors as available supply points third
party vs inhouse manufacture and existing demands on
factories from this information production and raw
material sourcing plans are developed and production
commences according to this plan
all products sold are tested rigorously so that they meet or
exceed the international standards regulating our products
once we are satisfied that the quality standards are met
products are dispatched to the warehouse of each local
market for delivery to their customers for sale to consumers  factory locations
europe
1 peterlee uk otc products
2 guernsey uk otc products
3 redruth uk compression 
hosiery products
4 rubi spain condoms
asia pacific
5 bangpakong thailand condoms
6 qingdao china condoms
7 pallavaram india condoms
8 puducheri india condoms
9 virudhunagar india condoms
10 irungattukottai india footcare
joint venture
1
3 2
4
10  9
7
8
5
6
consumer
retailer
ssl’s local commercial t eam
ssl’s central demand planning
ssl’s factorythird party supply
raw materials
raw materials
factorythird party supply
t ransport
ssl’s local warehouse
retailer
consumer
changes to inhouse manufacture
during 200607  we closed two uk factories—derby to
move the footcare packaging operations to a more cost
effective site in india and cambridge as avanti condoms
previously manufactured there have been replaced by an
alternative nonlatex condom which is sourced from the
manufacturing facility in spain  
flowchart of activities
information flow product flow 22
—
23
business review 
“by providing development
opportunities we can help
maximise the potential of 
our employees”
our people
training and development of our people is at the 
core of our approach to being a responsible employer 
by providing development opportunities which are
available to people throughout our organisation we 
can help ensure that we are maximising the potential 
of one of our greatest assets
during 200607 we have further strengthened existing
training programmes and introduced new opportunities 
for our people worldwide
t eamwork and sharing best practice
as a focused consumer brand company ssl must exploit
the full potential of our brands t o do this effectively it is
critical that our marketing teams are motivated and have 
the right tools and confidence to help fulfil their vital role 
in the future success of our business
in november 2006 50 marketeers from our european
business attended a residential course at the essec
business school in paris the objectives of the course 
were to enhance their business skills and to develop their
networking skills to promote the sharing of best practice
developing this marketing culture will allow ssl to deliver
brand performance through new ideas enthusiasm and
energy and a common way of working
balanced lifestyle
the ‘shaping your future’ programme was successfully
launched in the uk in 2006 the programme encourages
employees to take responsibility for their own personal
development it focuses on three key elements 
—
personal skills development to improve competence
within key skill areas eg learning the art of successful
negotiation managing people and teams more effectively
and improving presentation skills
—
business awareness to promote a wider understanding
of our business operations eg understanding the 
key drivers of business growth the regulations and legal
requirements surrounding product and quality management
and the interaction between the investor community and
our business operations
—
lifestyle to promote a healthy and balanced lifestyle 
by providing information on a variety of issues including
worklife balance personal finance and wellbeing
programmes
elements of this programme are being extended to our asia
pacific operations and during 200708 will be made available
to employees in targeted european commercial markets 1
2
focus on quality 
t o ensure that we meet international standards 
throughout our manufacturing processes continual training
programmes are essential both as part of the induction 
of new employees and as part of refreshing and updating
skills of current employees the training programmes 
are specific to the requirements of each manufacturing
location and cover areas such as gmp good manufacturing
practice and qa quality assurance as required by the
mhra continuous improvement health and safety and
environmental performance
global employee wellbeing programme
during 200607 we introduced an employee wellbeing
programme the programme provides employees with
information to educate to inform and to help them lead
healthier and more rewarding lives a wide range of issues
are covered which link directly to our business activities
such as world aids day on 1 december and also link to
international health promotion days such as world cancer
day to make the overall programme topical and relevant 
to all our employees
t op and bottom european marketing
managers attending a residential course 
at essec
employees by function
1commercial 41 2160
2manufacturing 59 3120
2
t otal 5280
1
1
headcount as at 31 march 2007
2
includes 1900 employees at our joint ventures in india
employees by geography
1 europe 37 1950
2 asia pacific 62 3280
2
3 americas 1 50
t otal 5280
1
1
headcount as at 31 march 2007
2
includes 1900 employees at our joint ventures in india
3
1
2 24
—
25
corporate responsibility
corporate responsibility
at ssl we aim to operate in a way which reflects 
our values while understanding and responding to
stakeholder views and connecting business decisions 
to ethical social and environmental concerns 
our approach to corporate responsibility helps us to
achieve our business objectives by
—
improving our ability to attract retain and motivate 
high quality people
—
fulfiling our obligation as the world’s largest and best known
condom brand to encourage good sexual health practices
across the globe 
—
contributing to economic development and 
—
improving the quality of life of our employees the local
communities where we operate and society at large 
two years ago we established our approach to corporate
responsibility through the ‘corporate responsibility
framework’ and are now in the process of developing this
further and will be able to expand upon our developments
next year
our people
we are creating a performancedriven culture that 
supports motivated successful people who are passionate
about our future we believe that to achieve our business
objectives we should encourage our employees to embrace
our operating principles — attitude — behaviour — culture —
and reflect these in the way they work we continue to 
focus our approach on four key areas resourcing reward
communication and development 
resourcing
the quality of our people is key to the continuing success 
of our business and we aim to recruit people of the highest
calibre we are committed to recognising and encouraging
diversity across the organisation and espouse the principle
of equality of opportunity for all employees regardless of
gender race or age we aim to give people with a disability or
who become disabled whilst in our employment the same
opportunities for career progression and training as other
employees
reward
ssl’s performancedriven reward strategy continues to
have a real impact on the business’ success in 200708 
we will build on this approach further aligning personal
objectives to overall business key performance indicators
last year we introduced t otal rewards statements ‘trs’ 
to our uk based employees to give them greater visibility 
and understanding of their individual reward package this
year trs has also been launched in france north america 
and canada and has been expanded further in the uk to 
provide employees a flexible benefits plan ‘my choices’
giving freedom choice and flexibility in the way in which
employees receive their benefits we anticipate that we 
will extend these initiatives further throughout the group
communication
open and honest communication is key to a successful
business and is a core value for ssl 
during the year garry watts chief executive visited 
most of our global operations to present to our employees
explaining business strategy and objectives these sessions
also provided our employees with the opportunity to
interact directly with him resulting in lively question and
answer sessions which were of benefit to everybody
ssl’s first global employee opinion survey gave all our “we are creating a performance
driven culture that supports
motivated successful people 
who are passionate about 
our future”
employees the opportunity to give their views to senior
management the feedback was very positive indicating 
high satisfaction and motivation levels throughout the
organisation however employees said that they were keen
to receive more training and development opportunities 
—this is something that we will act upon  
in addition we have commenced the launch of a new initiative
‘open door’ which provides employees with a way of voicing
concerns about business practices directly to senior managers
in confidence and without fear of recrimination we expect
to complete global rollout of this initiative by june 2007  
underpinning these new initiatives is our communication
toolbox of our global employee magazine ‘be inspired’
intranet ‘insight’ and poster campaigns supporting ssl’s
vision and values 
development
t raining and development of our employees remains an area
of focus and is clearly stated as one of ssl’s key business
objectives our approach to training and development and
illustrative examples are on pages 22 and 23
social marketing
durex  network—campaigning for good sexual health
it has been a successful year for the durex network—the
brand’s social marketing arm which works with politicians
healthcare organisations and charitable bodies worldwide 
to raise awareness of hivaids safer sex and consistent
condom use
the network received a commendation at the fifth annual
awards for business excellence for outstanding campaign
work on hivaids organised by the global business
coalition ‘gbc’ on hivaids tuberculosis and malaria
t op be inspired—ssl’s employee
magazine and my choices—a flexible
benefits plan
bottom open door scheme is 
in practice for global feedback to 
support whistleblowing policies 26
—
27
corporate responsibility
“durex network works 
with politicians healthcare
organisations and charitable
bodies worldwide to raise
awareness of hivaids 
safer sex and consistent
condom use”
t op ssl’s partnership with dance4life
bottom and opposite employees
in thailand assisting in the recovery
programme of a local primary school 
founding member of the gbc
ssl is a founder member of the gbc and the formation of
the durex network in november 2005 has brought the two
organisations even closer together recent joint research
and social intervention initiatives have led to praise from
gbc managing director joelle t anguy ‘organisations like
ssl have demonstrated tremendous leadership in this area
and the durex network is one of the global models we point
to when encouraging more action among our members’
dancing for life
another partnership which continues to grow in importance
is the network’s support of dance4life the youth arm of the
world aids campaign using dance and movement to raise
awareness of hivaids among teenagers the charity’s
biennial event to mark world aids day on 1 december
continued to gain momentum with 30000 young people in
ten countries dancing together via satellite link in a powerful
statement of hope and unity the ultimate aim is to have one
million dancers worldwide taking part in the 2012 event
continuing research
widely recognised as adding to the body of knowledge on
risk factors relating to unprotected sex ‘the face of global
sex’ research report led to invitations for the durex network
to present at high profile healthcare conferences during 
the year these included the 9th congress of the european
society of contraception 11th world congress on public
health and the 13th annual meeting of the american public
health association a peer reviewed manuscript was also
published in the march 2007 edition of the prestigious
european journal of contraception
community
ssl has operations in over 35 countries and employs 
around 5000 people worldwide we look to support the environment
this year we have exceeded our key environmental
objectives relating to reductions in water and energy
consumption and to reductions in waste produced 
in addition a further three manufacturing sites are now 
iso 14001 registered 
further information on our environmental performance
can be found in the environment report 200607 on ssl’s
website wwwsslinternationalcom
above ssl’s environmental logo
local communities in which our employees live and work 
by investing resources through charitable donations and
employees’ time and skills
social responsibility day in thailand
the damage and destruction to many houses and schools
caused by flooding in a number of provinces in thailand 
late in 2006 spurred our thai employees to hold a ‘social
responsibility day’ in december to assist in the recovery
programme of a primary school in the ayudhaya province
the social responsibility day was called ‘doing good things
for the king’ as 2006 was a very important year for all thai
people signifying the 60th anniversary celebration of the
king’s accession to the throne wat kradong thong school
was badly affected in the flood with classrooms playgrounds
learning tools and furniture damaged or destroyed the
project enabled ssl’s local management and employees 
to raise funds and donate much needed items to the school
such as furniture and learning tools plant trees and be
involved in voluntary work around the school
breast cancer awareness
our global employee wellbeing programme was piloted 
in the uk in october last year to link in with breast cancer
awareness month and was designed to encourage our
employees to become more health and body aware
employees at all our uk sites responded well to this programme
and organised and participated in different fund raising
events with all monies raised going towards research into
breast cancer prevention and cure
ftse4good
ssl continues to be a member of the ftse4good index which 
is designed to measure the performance of companies that
meet globally recognised corporate responsibility standards 28
—
29
financial review
profits up
margin improved
ssl ’s results for the year ended 31 march 2007 are set
out on page 48 t otal sales were £4802 million compared
with £443 1 million last year generating operating profit
before financing and after associates of £56 1 million
2006 £47 2 million the operating margin was up one
percentage point to 117 per cent 2006 107 per cent
pretax profit of £469 million compares to £357 million last
year basic earnings per share increased by 336 per cent to
17 1 pence from 128 pence
operating cash flow before restructuring was £609 million
compared to £406 million last year net debt at the year 
end was £887 million 2006 £915 million after the
acquisition of our former chinese joint venture in january 
for £192 million as part of this transaction cash of 
£56 million was also acquired
analysis of results
in the commentary on performance below comparatives
have been restated to exclude the effects of foreign currency
translation to aid understanding current year numbers
reflect the impact of the results of our chinese joint venture
post acquisition in january 2007 of £25 million of durex
sales and £14 million of operating profit
sales
sales of our total business were £4802 million 84 per cent
ahead of last year after excluding adverse foreign currency
movements of £7 5 million sales of our branded consumer
business comprising durex scholl footcare scholl footwear
and locally owned brands were £4262 million representing
growth of 88 per cent against last year sales are analysed 
in t able 1 on page 31
durex
durex sales were £187 1 million 17 5 per cent ahead of last
year on a currency adjusted basis and 160 per cent ahead
excluding the impact of the china acquisition with continued
growth particularly in iberia and eastern europe
durex continues to be developed as a brand which not 
only provides safe sex but focuses on sexual wellbeing our
product range is growing in all three core areas of condoms
personal lubricants and devices enabling people to enjoy
more fulfilled sex lives
sales of the durex play range more than doubled from 
£12 million last year to £27 million as the result of the
continued expansion of our range of personal lubricants 
and the wide distribution and consumer acceptance of play
vibrations the innovative vibrating ring launched last year
sales of durex condoms have increased by 88 per cent to
£1601 million as the premium range of condoms such as
mark moran
finance director pleasuremax with its warming variant and performa continue
to perform well with innovative advertising and promotion
supporting extended distribution
scholl footcare
sales of scholl footcare grew over 6 per cent to £100 million
on an underlying basis the growth has largely been driven by
the successful introduction of new innovative technically
advanced products such as cracked heel repair cream 
and freeze verruca  wart remover particularly in uk and
france and party feet line extensions throughout the rest 
of europe and asia pacific
in addition our decision to switch £6 million of marketing
expenditure from the second to the first half of the year to
support the new product launches during the key spring and
summer periods throughout europe has also helped drive
growth of scholl footcare
scholl footwear
underlying sales of scholl footwear grew by 18 per cent to
£668 million as the turnaround of the european business
continues european sales grew by 57 per cent to £56 0 million
whilst the japanese and thai businesses where the business
model differs from europe saw a decline 
the brand ideal of ‘foot science made relevant’ is now well
established within europe and underpins our strategy of
providing welldesigned stylish shoes that take care of feet
in addition we expect to achieve further growth in extended
distribution beyond our traditional channel of pharmacy into
high street footwear retailers
locally owned brands
sales from our portfolio of locally owned brands were 
£723 million marginally lower than last year as a result of 
the competitive retail environment in the uk as we reported
in the first half  however this decline was offset by a strong
performance from mister baby a range of mother and baby
products in italy 
other sales
sales of our other products were £540 million 49 per cent
above last year on an underlying basis as a result of higher
sales of our low margin unbranded condom business other
sales also include contract manufacturing and sales from
distribution of third party products  
gross margin
the gross margin for the group is 592 per cent which 
is 1 per cent down on last year after adjusting for foreign
currency movements this is mainly due to the growth in 
the durex play range and the third party sourcing of our 
new footcare products
market development expenditure
the group spent £707 million on market development 
in the year ended 31 march 2007  this reflects an increase 
of £27 million on the previous year currency adjusted 
as we continue to commit to investing in advertising our
consumer brands 
brand contribution
brand contribution is one of the group’s key measures 
for success it is defined as sales less cost of sales market
development expenditure and variable selling costs brand
contribution was £1840 million representing an increase 
of over £13 million compared to last year currency adjusted
and represents over 38 per cent of sales
selling general  administration costs ‘sga’
sga costs were £1297 million higher in absolute terms 
than last year but continuing to reduce as a percentage of
sales by more than 1 per cent to 27 per cent on a currency
operating expenses as a percentage of sales
0607
0506
0405
at constant exchange rates
27 0
283
302
basic earnings per share
0607
0506
0405
  200405 relates to normal business operations
17  1 pence
128 pence
95 pence 30
—
31
financial review
“our commitment to challenging
the cost base remains one of 
the fundamental elements in
achieving our operating profit
growth targets”
adjusted basis our commitment to challenging the cost
base remains one of the fundamental elements in achieving
our operating profit growth targets
operating profit
operating profit  including income from associates was 
£561 million up 189 per cent compared to last year 2006
£47 2 million currency adjusted driven by organic sales
growth combined with tight cost control currency adjusted
operating margin was up by 1 per cent to 117 per cent the
american business suffered a statutory operating loss of
£19 million compared to an operating profit of £13 million 
in 2006 largely as a result of an unsuccessful local 
product launch
financing costs and taxation
t otal net interest cost for the year was £92 million 2006
£134 million the net interest charge from financing has
remained fairly constant at £80 million 2006 £7 9 million
despite the acquisition of the remaining 50 per cent of our
former chinese joint venture in january for £192 million 
with cash acquired of £56 million the net interest charge
relating to ias 19 ‘employee benefits’ has reduced to £30
million mainly as a result of improved returns from assets
2006 £34 million the impact of ias 39 ‘financial
instruments’ has this year resulted in a noncash credit of
£18 million compared with a charge of £21 million in 2006
reflecting the movement of the us£ bond yield during 
the year 
the tax charge of £131 million represents a tax rate of 29 per
cent of operating profit preassociate income 2006 289
per cent 
earnings and financial condition
profit after tax and minority interests was £325 million
2006 £242 million which generated basic earnings per
12
operating margin up
one percentage point
£494m
strong operating 
cash flow share of 17 1 pence 2006 128 pence shareholders’ funds
at 31 march 2007 were £97 6 million 2006 £67 0 million
cash flow and investing activities
operating cash flow was £609 million compared to 
£406 million last year this is defined as cash generated
from operations of £494 million 2006 £320 million
before cash paid in respect of restructuring provisions 
of £115 million 2006 £86 million 
litigation
this is detailed in note 25
capital structure and treasury policy
international accounting standards 32 and 39
ias 32 and 39 require 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 managed the impact of those financial
instruments is considered in note 22
foreign exchange risk objective
the nature of the group’s trading activities generates
transactional foreign exchange rate 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 objective of the group’s foreign exchange
policy is to minimise the trade exposure to foreign exchange
rate fluctuations for the overseas entities and manage the
risk from the centre this requires that all tradingrelated
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
up to a period of 12 months
interest rate exposure objective
the interest rate risk management policy aims 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 board
approved 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 22
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 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 group and
ensures that the group has sufficient liquidity to meet any
reasonable change in funding requirements the group’s
liquidity as defined as the aggregate of the group’s cash
liquid resources and central undrawn committed facilities 
as at 31 march 2007  amounted to £2564 million 2006
£610 million
mark moran 
group finance director
21 may 2007
t able 1 as reported adjusted 
1
adjusted
31 mar 2007 31 mar 2006 growth
£m £m 
durex
2
1871 1592 175
scholl footcare 1000 942 62
scholl footwear 668 656 18
locally owned brands 723 726 04
t otal branded customer 4262 3916 88
other 540 515 49
t otal consumer 4802 4431 84
1
adjusted for currency movements
2
includes durex sales of £25 million in china following acquisition in january 2007  board of directors
executive directors
1 garry watts chief executive  50
appointed as chief executive on 1 april 2004 after joining as
group finance director in february 2001 he was previously
an executive director of celltech group plc and finance
director of medeva plc garry is a nonexecutive director of
the medicines and healthcare products regulatory agency
‘mhra’ and also of protherics plc 
2 mark moran group finance director 47
appointed as group finance director in june 2004 mark
was previously finance director of porvair plc
3 ian adamson managing director—europe 48
appointed as executive director in april 2004 ian also has
responsibility for group marketing and innovation and for the
americas he joined seton healthcare plc in 1991 as director
of marketing and has subsequently held a number of senior
sales marketing and general management positions within
the group he previously held sales and marketing positions
at johnson  johnson and w l gore 
nonexecutive directors
4 gerald corbett chairman 55
chairman since august 2005 gerald is also chairman of
britvic plc and a nonexecutive director of greencore group
plc he will be stepping down from the board of woolworths
group plc on 6 june 2007  having served as a director and
chairman since march 2001 previous executive positions
include chief executive of railtrack plc and group finance
director of both grand metropolitan plc and redland plc
whilst past nonexecutive directorships include mepc plc
and burmah castrol plc
5 peter read senior independent director 68
appointed in march 2002 peter is chairman of the
nomination and remuneration committees he is a 
nonexecutive director of vernalis plc and an independent
director of innogenetics nv previously peter was a senior
executive with hoechst and president of abpi a non
executive director of celltech group plc and a member 
of the board of the south east development agency
6 richard adam 49
appointed as a nonexecutive director and chairman 
of the audit committee in november 2003 richard is
currently group finance director of carillion plc prior to
this he was group finance director of associated british
ports holdings plc richard is a fellow of the institute of
chartered accountants of england and wales  
7  susan murray 50
appointed in january 2005 susan is currently chairman 
of fb raphael 1 limited the holding company of the farrow
and ball paint and wallpaper business and a nonexecutive
director of enterprise inns plc imperial t obacco plc wm
morrisons supermarkets plc and the advertising standards
authority previously susan was chief executive of
littlewoods stores limited
8 anna catalano 47
appointed in november 2004 anna has held senior global
marketing and sales positions in amoco including president
amoco orient oil company and was group vice president
marketing at bp plc she is a nonexecutive director of willis
group limited and the us company hercules incorporated 
9 antony mannion company secretary 46
appointed in september 2004 antony qualified as a
solicitor with freshfields in 1986 and has also worked 
as an investment banker with citicorp investment bank 
and standard chartered bank 
32
—
33
board of directors
corporate governance
12 3 4 5
67 8 9 corporate governance
introduction
the board is responsible for delivering value to shareholders and other
stakeholders by developing strategy and by leading the group ensuring
that the appropriate resources processes and controls are in place to
execute that strategy developing and maintaining high standards of
corporate governance is integral to the delivery of value 
this report explains ssl’s corporate governance arrangements and how
the group has applied the combined code on corporate governance 
the ‘code’
the board
there is a written schedule of matters reserved to the board this 
schedule includes
—
approvaldevelopment of the group’s longterm objectives and
commercial strategy
—
approval of annual operating and capital expenditure budgets and any
material changes to them
—
review of performance in the light of the group’s strategy objectives
business plans and budgets and ensuring that any necessary corrective
action is taken
—
approval of major capital projects including acquisitions
—
approval of contracts which are material strategically or by reason 
of size and
—
monitoring the system of internal control and corporate governance
t o ensure proper consideration at the appropriate time the board has 
a schedule of matters for each meeting these matters include
—
reports from the chief executive and finance director
—
health and safety
—
presentations from the heads of the business units
—
investor relations and
—
regulatory reviews
the board receives regular updates on relevant legal environmental and
regulatory matters as necessary between meetings
the schedule below sets out the number of scheduled board and
committee meetings held during the year and the attendance by directors
at those meetings
scheduled audit nomination remuneration
board committee committee committee
meetings meetings meetings meetings
g corbett 7 7 5 5 11
g watts 7 7 5 5
i adamson 7 7
m moran 7 7
p read 7 7 4 4 5 5 4 4
r adam 7 7 4 4 5 5 4 4
a catalano 6 7 3 4 3 4
s murray 7 7 4 4 4 4
m pilkington 7 7 
the figures in brackets indicate the maximum number of meetings in the period in which the
individual was a board member when directors are unable to attend meetings they receive
the relevant papers and are invited to comment in advance of the meeting
in addition there is an annual offsite meeting devoted solely to strategy
during the year under review the board continued to be led by the
chairman gerald corbett garry watts the chief executive is primarily
responsible for the effective running of the group’s business there is 
a clear written schedule on the division of responsibilities between the
chairman and the chief executive in addition to the chairman and 
chief executive there are four nonexecutive directors one of whom 
is the senior independent director ‘sid’ and two executive directors 
mike pilkington served as an executive director during the year until 
he resigned on 22 march 2007 
details of the chairman’s professional commitments are included in 
his biography the board is satisfied that the other commitments of 
the chairman do not interfere with the performance of his duties as
chairman the board considers that all of the nonexecutive directors 
are independent in character and judgement and by reference to the
combined code and that controls are in place to ensure that no single
director has unfettered powers of decision
the management of operational matters within the group is delegated to
the executive committee which comprises the executive directors and
certain other senior executives the executive committee meets monthly
board evaluation
during the year the board reviewed the process for the evaluation of the
performance of the board its committees and the individual directors
previously evaluations have been conducted internally and led by the sid
the board concluded that an internal evaluation remained appropriate 
but that the process be led by the chairman whilst the sid conducted the
evaluation of the chairman
all directors were required to complete a detailed questionnaire which
each director then discussed with the chairman and with the sid in relation
to responses about the chairman the results were presented and fully
discussed by the board overall the results were good recommendations
that are being implemented include a more detailed halfyear review on
strategy and greater focus on succession planning
the board considers the annual evaluation to be a valuable process 
which has contributed to fostering an environment within the board which
is challenging but supportive and encourages focus on the main issues
facing the group in 200506 the recommendations included improving
the board’s knowledge of the supply chain process regular updates on 
the supply chain are now presented to the board and consequently the
knowledge of the directors in this area has improved
dialogue with shareholders
the company has a comprehensive investor relations programme
involving existing and potential investors the chief executive finance
director and certain senior executives meet with institutional investors 
on a regular basis the chairman and sid make themselves available to
meet with institutional investors the sid attended the preliminary and
interim results presentations with investors and analysts an investor
relations report is presented and considered at each board meeting
the board uses the annual general meeting which all directors attend 
to communicate with investors and encourage their participation 
the directors are available to speak informally with shareholders after
the meeting corporate governance
continued
board committees
the board has established three committees each committee operates 
in accordance with formal terms of reference which are reviewed annually
and can be viewed on the company’s website wwwsslinternationalcom
committee meetings are generally held immediately prior to board
meetings and the committee chairmen report at the next meeting on 
the proceedings of the committee which they chair
34
—
35
corporate governance
chairman
members
attending by invitation
summary of principal activities 
during the year
audit
richard adam
anna catalano
susan murray
peter read
group chairman
chief executive
finance director
external auditor
head of business assurance
internal audit 
financial controller
company secretary
—
review of interim and annual
reports including a consideration
of the comments of the external
auditor thereon
—
review of risk management 
and internal control systems
—
review of the group’s internal
audit processes including
approval of the annual internal
audit plan 
—
monitoring the provision of
services by the external auditors
and an annual appraisal of their
effectiveness as auditors
nomination
peter read
richard adam
gerald corbett
garry watts
group hr director
company secretary
—
reviewing the size and
composition of the board
including the mix of skills 
and experience
—
consideration of succession 
issues
—
recommending the extension 
of the appointments of richard
adam and peter read as non
executive directors
remuneration
peter read
richard adam
anna catalano
gerald corbett
chief executive
group hr director
company secretary
—
reviewing the remuneration
policy for the executive directors
and the executive committee
—
agreeing the compensation
arrangements for mike pilkington
—
further information on the work
of this committee can be found 
in the remuneration report on
pages 39 to 45  policy on auditors’ independence
safeguarding the independence of the external auditors is paramount and
controls are in place to ensure their continued independence however
there are occasions when services can be more efficiently undertaken by
the external auditor and at no risk of impairment of their independence 
the audit committee has put in place a detailed policy on the provision 
of services by the external auditors which sets out the services which the
external auditors are allowed to carry out on behalf of the group and those
which are prohibited to them under this policy external auditors cannot 
be engaged to provide any of the following services
—
design or implementation of it systems
—
valuation
—
internal audit and
—
litigation support legal or corporate finance advice tax advice if on a
wholly or partly contingent fee basis recruitment executive compensation
advice accounting and actuarial valuation secondment of senior audit
staff to the company is also prohibited
under this policy it has been agreed that due to their understanding of 
the group’s business and therefore ensuring cost efficiency the external
auditors may be engaged for the following nonaudit services for which
there is a preagreed limit for fees not including va t which do not require
prior approval from the audit committee
—
auditrelated regulatory reporting including interim review covenant
reporting and other audit certificates £100000
—
further assurance including advice on accounting matters non
regulatory reporting on internal controls or corporate governance 
due diligence work and environmental audits £100000 and
—
t ax compliance and tax advisory services £300000
the chairman of the audit committee may approve urgent engagements
not covered by these categories subsequently notifying the audit
committee at its next meeting details of fees paid to the external auditor
during the year are set out in note 2 to the consolidated financial statements
internal control
the board is responsible for the group’s system of internal control and for
reviewing its effectiveness and this is monitored by the audit committee
key elements of this system include
—
regular board meetings with a formal schedule of matters reserved for
board discussion
—
clearly defined organisational structures and appropriate delegation of
authority adherence to which is kept under review
—
centralised treasury operations operating within defined limits
—
review of the group’s accounting manuals and procedures 
—
receipt of annual compliance statements from all statutory units within
the group stating compliance with group accounting manuals and
—
an effective internal audit function providing independent scrutiny of
internal control systems and risk management procedures
risk management is embedded within the daytoday activities of all
executives management of this area is now the responsibility of the 
global operating committee a significant element of this process is 
the maintenance of a group risk matrix the ‘matrix’ the matrix contains
both financial and nonfinancial risks identified through regular top down
and bottom up reviews
the board believes that the company operates an effective embedded
system of internal control and is confident that it complies with internal
control guidance for directors on the combined code the ‘t urnbull report’
further information about the risk management processes is given on
pages 36 and 37 
combined code compliance
during the year the company complied with the code except in the
following respect
a41 the nomination committee comprises the group chairman the 
chief executive the sid and a nonexecutive director whilst the board
considers the group chairman to be independent membership of this
committee does not consist of a majority of independent nonexecutive
directors as defined by the code
going concern
after making enquiries the directors believe that the group and the
company have adequate resources to operate for the foreseeable 
future for this reason they continue to adopt the going concern basis 
in preparing the financial statements risks and uncertainties
there are risks and uncertainties connected to the group’s businesses 
the factors listed below are among those that the group thinks could cause
the actual results to differ materially from expected and historical results
risk management is an important element of the system of internal control
this system is 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 loss during the previous financial year
a comprehensive review of the risk management process was undertaken
with the aim of further improving and strengthening the system and
embedding risk management within the operational and executive
management throughout the group overall responsibility for the risk
management process lies with the global operating committee ‘goc’
the risk management process involves making all managers within the
group responsible for risk management and for ensuring that a full
assessment of risks both financial and nonfinancial has been completed
this is achieved by a bottomup and topdown review of risks throughout
the group from this a group risk matrix has been developed and is actively
managed by the goc 
an overview of the process is presented below
36
—
37
risks and uncertainties
board of directors
audit committee business assurance
group risk register managed by goc external audit
unit risk register managed by unit management
divisional risk register managed 
by divisional management
goc
divisional management t eam
operating unit risk
disruption to the group supply chain
failure of new product development ‘npd’
commercial risks
inadequate succession planning
it system failure
failure to comply with regulatory matters 
including environmental and health and 
safety matters
description
—
failure eg at a factory by a third party supplier
or a failure at a warehouse
—
failure in npd pipeline resulting in loss of sales
and profits
—
unforseen competitor activity
—
increased margin pressure from large 
retail groups
—
geographic expansion into emerging markets
—
effects on financial performance of economic
downturn in a major market
—
recruiting and retaining key members of staff
—
failure of it system to support key business
processesfunctions resulting in loss of sales
and profits
—
major product liability claims
—
inability to supply products resulting from
failure to comply with regulatory demands
leading to financial loss and damaged 
brand reputation
—
impact on reputation resulting from negative
environmental or health and safety reports
mitigating action and management
—
dual sourcing and ability to switch production
—
follow up on recommendations from the
annual business interruption review
—
development and continuous review of
business continuity plans
—
defined methodology for controlling 
npd projects
—
steering committees chaired by the 
chief executive to monitor npd activities
—
continuous market surveillance to gather
information on competitor activity
—
npd process focused on delivering ‘value
added’ products to customers
—
groupwide management of key accounts
—robust financial and risk analysis of geographic
expansion including the use of external advisers
—
strong management reporting structures
ensure that emerging risks are identified quickly
—
continuous effort to spread revenue
generation across global operations
—
group hr continually reviews the talent pool in
the organisation and identifies succession risks
—
remuneration and hr policies to ensure that
the group employs highly motivated well
remunerated successoriented people
—
wideranging training opportunities to provide
continuous development opportunities
—
continuous testing of backup procedures 
and disaster recovery plans
—
group it provides system support in key markets
—
product liability insurance
—strong technical and quality assurance team
ensuring that all products comply with all
necessary regulations
—
key principle within the group to use regulation
as a competitive advantage
—
dedicated team conducting environmental
and hs audits in operating facilities
risk management is a standing agenda item at the goc meetings
additionally the goc conducts a thorough review of the group risk 
matrix at least twice a year  directors’ report
the directors present their report and financial statements for the
year ended 31 march 2007 
principal activities and business review
the principal activities of the ssl international plc and its subsidiaries
collectively the ‘group’ are the manufacture and distribution of
healthcare products sold into consumer markets worldwide more details 
of these activities together with the information about the business review
that is required to be disclosed pursuant to the companies act 1985
operating and financial review and directors’ report regulations 2005
are contained within this report and in the chairman’s message on page 4
the chief executive’s review on pages 5 to 7 and in the financial review on
pages 28 to 31
results and dividend
the group’s profit before tax was £469 million an interim dividend of 
21 pence per ordinary share was paid on 1 march 2007  the directors
recommend a final dividend of 47 pence per ordinary share which subject
to shareholder approval at the annual general meeting ‘agm’ on 25 july
2007 will be paid on 6 september 2007 to shareholders on the register on
10 august 2007  this will make a total dividend of 68 pence per ordinary
share 2006 64 pence
board of directors
the group board section on page 32 gives the biographical details of 
the current directors and the company secretary with the exception of 
mike pilkington all the directors served throughout the year mike pilkington
resigned as a director on 22 march 2007 
in accordance with the articles of association anna catalano and susan
murray will retire by rotation at the agm following a recommendation 
from the nomination committee and in line with the results of the board
evaluation the process for which is described in the corporate governance
report the board recommends to shareholders that these directors be
reappointed at the agm
the company has the authority under its memorandum and articles of
association to agree individual contracts of indemnity with its directors 
and others t o date no such contracts have been entered into
annual general meeting ‘agm’
the agm will be held at the cii insurance hall 20 aldermanbury london 
ec2v 7hy beginning at 10 am on 25 july 2007 
share capital
details of shares issued during the year and outstanding options are 
given in notes 18 and 19 to the consolidated financial statements
authority to purchase shares
the directors were authorised at the 2006 agm to purchase the
company’s own shares within certain limits although no such purchases
were made during the financial year the directors will seek approval to
renew this authority at the 2007 agm
as at 21 may 2007  the company had been notified of the following material
interests in accordance with the disclosure and t ransparency rules
number of shares percentage of issued
shareholder voting rights share capital
amvescap plc 1 6501145 866
ubs ag 1 3394989 698
fc asset management plc 1 2612264 662
aviva plc 1 1828618 621
blackrock investment  
management uk ltd 9529593 500
legal  general group plc 6507071 341
capital group international inc 5697249 300
employment policies
the group’s employment policies reflect its commitment to equality 
and diversity in all aspects of employment profit related bonus schemes
were in operation during the year for certain employees further details 
of policies and initiatives are given in the corporate responsibility review 
on pages 24 to 27 
creditor payment policy
the group does not follow any specific external code or standard on
payments practice payments to suppliers are made in accordance with
agreed terms the company itself had no trade creditors at 31 march 2007
or 31 march 2006
charitable and political donations
the group made charitable donations of £01 million 2006 £01 million 
no political donations were made in this or the previous year
disclosure of information to auditors
the directors who held office at the date of approval of this directors’
report confirm that so far as they are each aware there is no relevant 
audit information of which the company’s auditors are unaware and 
each director has taken all the steps that they ought to have taken as a
director to make themselves aware of any relevant audit information and 
to establish that the company’s auditors are aware of that information
auditors
kpmg audit plc has expressed its willingness to remain in office as 
auditor and a resolution will be put to shareholders at the 2007 agm 
after proper consideration the audit committee is satisfied that kpmg
audit plc continues to be objective and independent of the group
by order of the board
antony mannion
company secretary
21 may 2007
38
—
39
directors’ report
remuneration report remuneration report
dear shareholder
i submit the directors’ remuneration report for the year ended 
31 march 2007  
the remuneration committee’s aim is to establish a remuneration
framework which incentivises the senior team to outperform against
challenging targets selected to provide a clear link between the
underlying business performance and their reward we introduced a
new approach in 2005 and i am pleased to be able to report that this
policy has continued to contribute to the success of the ssl group
the remuneration committee reviews remuneration policy annually
to ensure that it is in line with the group’s performancedriven culture
and with investor guidelines for 200708 some changes have been
made to the performance conditions attaching to the annual bonus
and longterm incentives by incorporating an economic value added
performance condition the committee feels that this measure is
appropriate to the business and the rationale is contained in the
report other than these changes to performance measures the
committee believes that no other changes are required at the present
time a full explanation of the remuneration policy is given below
peter read
chairman remuneration committee
this report has been prepared in accordance with the companies act 1985
as amended by the directors’ report regulations 2002 the report also
explains how the company has applied the combined code in relation to
directors’ remuneration
remuneration committee the ‘committee’
composition of the committee
peter read
committee chairman and senior 
independent director
gerald corbett
group chairman and nonexecutive director
richard adam
nonexecutive director
anna catalano
nonexecutive director
susan murray
nonexecutive director
all members of the committee served throughout the year with the
exception of gerald corbett who was appointed to the committee on 
1 march 2007  prior to his appointment as a committee member the
group chairman attended committee meetings by invitation of the
committee with the exception of gerald corbett all of the above
individuals are independent nonexecutive directors gerald corbett 
was independent on his appointment as chairman of the company 
advisors to the committee
the chief executive company secretary and group human resources
director who are generally invited to attend committee meetings provide
advice andor services to the committee no executive participates in any
discussion concerning his or her own remuneration
the committee receives advice from independent consultants during 
the year the committee received advice from the following consultants
consultant advice provided to the committee
new bridge street consultants llp on the group’s medium and long
term incentive arrangements
ernst  young llp on the operation of the group’s
share schemes and the calculation
of the group’s t otal shareholder
return
watson wyatt limited benchmarking data in relation to 
the total reward packages of the
executive directors and the
executive committee
hammonds llp advice in relation to directors’
service contracts
with the exception of new bridge street holdings llp the above
consultants also provide advice to the company on the matters described
hammonds llp also acts as legal advisors to the company in addition
watson wyatt provides insurance broking and benefits advisory and
administrative services in the uk the committee is satisfied that the
provision of advice to the company does not result in a conflict of interests
activities of the committee
the committee which meets at least four times a year has a schedule of
the principal items to be discussed at each meeting the purpose of the
schedule is to ensure that all material matters are fully considered at the
appropriate time such matters include
—
a review of remuneration policy
—
consideration of benchmarking data in relation to executives’
remuneration packages
—
a review of performance measures for the group’s incentive schemes
the committee chairman reports to the board usually at the board meeting
which takes place immediately after the committee meeting on the
principal matters discussed at the committee copies of all committee
minutes are available to the directors
the committee’s terms of reference which are reviewed annually can be
viewed on the company’s website wwwsslinternationalcom
remuneration policy
the main objective of the policy is to attract retain and motivate those
people of the highest calibre who have the skills needed to lead the group
to achieve its objectives year on year
the principles of the policy which are unchanged from the previous 
year are
—
t o provide a truly motivational incentive scheme which drives individuals
to outperform against challenging targets
—
establishing that variable pay provides the material element to
executives’ total reward
—
ensuring that there is an appropriate balance between shortterm and
longterm targets with a significant proportion of the remuneration
subject to carefully considered longterm performance conditions
—
aligning the interests of executives with those of shareholders and
—
effectively using the company’s equity for the purposes of reward 
and retention remuneration report
continued
the structure of remuneration for executives is illustrated in the chart below
base salary salaries are reviewed annually and are determined by individual
performance and by reference to market salary levels obtained from
independent sources this is the only element of remuneration which is
pensionable base salary increases during the year ended 31 march 2007 
for executive directors were between 60 per cent and 7 8 per cent these
increases reflect the outstanding personal performance of the individual
directors and the resultant performance of the business
annual bonus plan this is a cash plan structured to drive individual
performance towards achieving the group’s targets and collectively benefit
shareholders and the individual executive 
bonus potential for the 200708 financial year is unchanged however 
the committee has reviewed the performance conditions for the 200708
annual bonus and has concluded that it is now appropriate to include an
additional performance measure for the executive directors the annual
bonus potential will be split so that onethird of bonus will be based on a
range of economic value added ‘eva’ targets and twothirds will be based
on a range of challenging earnings per share ‘eps’ targets  
when considering an additional performance measure the committee
wanted to ensure that such a measure would be an effective link between
improved underlying business performance and appropriate reward to 
the executive directors 
eva which is calculated as normalised operating profit after tax less the
cost of all capital employed to produce those earnings captures the three
basic generic strategies for creating value
—
t o increase economic return for capital employed
—
t o grow by investing in new products whose return more than
compensates for the risk taken and
—
t o curtail investment and divert capital from uneconomic activities
the potential payment of the annual bonus for both the eva and eps 
parts of the bonus will be as shown in the following table
performance vs target 95 100 105 115
 of salary for chief executive 10 50 100 115
 of salary for executive directors 7 5 37 5 75 100
proportion of fixed vs performancerelated remuneration 
chief executive officer
tar get
maximum
0 20 40 60 80 100
other directors
tar get
maximum
salary
pension
annual bonus
performance share plan
0 20 40 60 80 100
the threshold of 95 per cent of target represents an increase over the
actual 200607 eps and an improvement in eva over the prior year no
bonus would be payable on the achievement of results below 95 per cent 
of target a straight line sliding scale of payment will operate between the
points in the target range 
the annual bonus scheme is structured to drive complementary behaviours
across the senior executive population that aligns with the group’s goals
and collectively benefit shareholders the table illustrates the cascade of
targets for the year ended 31 march 2008 for certain key senior executives
currently approximately 35 employees typically individuals will be
bonused on two to three of these targets 
overall the committee is satisfied that the annual bonus plan has created
an excellent link between reward and company performance
performance share plan ‘psp’
executive directors and certain other executives are entitled to participate
in the psp which is the group’s only longterm incentive plan the psp was
approved by shareholders in 2005
other than in exceptional circumstances the value of the awards will not
exceed 100 per cent of base salary  subject to the satisfaction of performance
conditions awards will normally vest on the third anniversary of grant
performance conditions are determined annually by the committee
details of awards granted in 2005 and 2006 are given on page 45 
the committee has considered carefully the award levels and performance
conditions attached to the 200708 award for the reasons previously
explained in relation to the annual bonus the vesting of this award will be
subject to the achievement of a combination of eps onethird and eva
twothirds targets the committee has concluded that the current 
policy of basing performance conditions on the company’s financial
performance has created a very effective incentive the committee 
did consider alternative performance conditions such as comparing 
the company’s total shareholder return ‘tsr’ against other companies 
but this was felt to be less effective at linking underlying business
performance and reward to executives the committee will continue 
to monitor performance targets to ensure that such targets remain
sufficiently stretching and aligned to the interests of shareholders
40
—
41
remuneration report
performance measure
eps
eva
group brand
contribution
group management
operating profit
operating cash flow
regional operating
cash flow
regional brand
contribution
regional sales
customer service
category brand
contribution
personal 
performance
1
executive directors
including the chief
executive
executive directors
including the chief 
executive
2
executive 
committee
executive
committee
executive
committee
3
group management
team
group management
team
regional
commercial team
regional
commercial team
regional
commercial team
manufacturing 
and logistics team
manufacturing 
and logistics team
certain group 
commercial and
manufacturing roles
employee level the vesting schedule for the eps element of the award is as follows
average annual growth in eps over the
three financial years ending 2008 —2010 percentage of total award vesting
below rpi 7 none
rpi 7 ie 21 over three years 5
rpi 12 ie 36 over three years 167
rpi  17 ie 51 over three years 333
a straight line sliding scale of payment will operate between the points in the
target range
the committee recognises that the eps percentage growth targets are
lower than those set for the 2006 psp awards however for awards in 2007 
the base point from where eps will be measured will be significantly higher
therefore while the range of eps growth targets is lower than for last year’s
award the committee considers that the target range represents a clear
progression over the target range set last year
the vesting schedule for the eva element of the award is as follows
aggregate eva generated over the
three financial years ending 2008 —2010 percentage of total award vesting
below £90 million none
£90 million 10
£100 million 333
£110 million 667
a straight line sliding scale of payment will operate between the points in the
target range
eps and eva will be calculated by the company and achievement of targets
will be independently verified before the awards vest the committee is
satisfied that the target range for both measures is sufficiently stretching
and that their achievement would result in significant shareholder 
value creation
awards will not confer shareholder rights until the awards have vested and
participants have received their shares
participants will be entitled to receive a payment in cash andor shares on
or shortly following the vesting of their awards of an amount equivalent to
the dividends that would have been paid on those shares between the time
when the awards were granted and the time when they vest
shareholding guidelines
executive directors will be expected to retain at least 50 per cent of the
shares net of tax which vest to them under the psp until a shareholding
equivalent to 100 per cent of base salary is achieved
pension
the company operates a number of retirement benefit programmes
throughout the world such benefits reflect local competitive conditions
and legal requirements
in the uk the company operates three defined benefit schemes and a
contractedin defined contribution scheme the ssl uk pension scheme
the ‘ssl scheme’ for uk employees all uk defined benefit schemes are
closed to new entrants and future pension accrual
executive directors who participate in the ssl scheme contribute  5 per
cent of their base salary executive directors receive 25 per cent of base
salary in respect of retirement provision any contributions that are not
made in respect of retirement provision are paid as a salary supplement
ian adamson is also a member of one of the defined benefit schemes
garry watts is not a member of the ssl scheme but operates a personal
pension plan garry watts receives 25 per cent of base salary in respect 
of retirement provision any contributions that are not made in respect 
of retirement provision are paid as a salary supplement
other benefits
the company provides other benefits to the executive directors and
certain other executives namely a company car or car allowance life
assurance permanent health insurance and private medical insurance
service contracts
it is company policy that the notice period in executive directors’ contracts
should not exceed one year however the committee retains the discretion
to offer a service contract to a new executive director that contains an
initial notice period in excess of one year in exceptional circumstances
where this is considered necessary
the executive directors’ contracts have no fixed term but provide that
either the director or the company may terminate the employment by
giving one year’s notice
director date of contract
garry watts 5 february 2001
ian adamson 17 june 1996 
mark moran 28 may 2004
there are no express provisions for compensation payable in the event of
termination except that garry watts’ contract provides that if the company
terminates mr watts’ appointment with immediate effect in addition to his
contractual notice period mr watts shall be entitled to a payment equivalent
to the average of any bonus paid within the threeyear period prior to the
date of termination
if the employment of an executive director is terminated the committee’s
policy is to apply mitigation to compensation payments at a level determined
by reference to the individual circumstances of the executive director
appropriate external and human resource advice would be obtained in
each case
mike pilkington resigned as an executive director on 22 march 2007 
and will be leaving the company at the end of june 2007 after handing 
over his responsibilities mr pilkington is considered to be a good leaver 
and in determining mr pilkington’s compensation for loss of office the
committee applied the policy described above an agreement has been
reached which the committee believes is fair both to the company and 
mr pilkington details of the compensation are given in note 6 on page 42 
nonexecutive directors
save as disclosed below none of the nonexecutive directors has a 
service contract
gerald corbett was appointed a nonexecutive director and chairman 
of the company on 1 august 2005 for a term of three years terminable by 
12 months’ notice by either party mr corbett receives a fee of £180000 pa
the basic fee for nonexecutive directors is £36000 pa increased from
£30000 pa with effect from 1 april 2007 an additional fee of £5000 pa
is paid to committee chairmen in addition the senior independent
director peter read receives a further £5000 pa remuneration report
continued
42
—
43
remuneration report
details of the appointments of the other nonexecutive directors are shown below
nonexecutive director appointment letter date of appointment initial term comments
peter read 28 february 2002 21 march 2002 one year renewed annually currently expires 21 march 2008
richard adam 21 october 2003 13 november 2003 three years renewed for a further three years on 27 september 2006
anna catalano 29 october 2004 11 november 2004 three years nominated for reappointment at the forthcoming agm
susan murray 10 november 2004 1 january 2005 three years nominated for reappointment at the forthcoming agm
external appointments
the company recognises that executive directors may be invited to become nonexecutive directors of other companies these appointments can 
be beneficial to both the individual and the company in providing further experience and knowledge but the company’s consent is required before an
executive director can accept such an appointment fees are normally retained by the individual director garry watts is the only executive director holding
such directorships he is a nonexecutive director of protherics plc for which he receives a fee of £37 500 pa and of the medicines and healthcare products
regulatory agency for which he receives a fee of £7 000 pa
notes
1 remuneration shown above relates to the period for which each director
served during the year
2 for the 200607 financial year the performance target for the annual
bonus was eps of 148 pence representing growth of 156 per cent over
200506 eps with a range for threshold 1406 pence and maximum 
17 02 pence for superlative performance eps was 17 1 pence a growth 
of 336 per cent over the year therefore the chief executive will receive 
a cash bonus of £609000 and the other executive directors will each
receive £247 500 respectively these cash bonuses will be paid in 
june 2007 
3 the executive directors also received a payment under the deferred
share bonus plan established as a oneoff arrangement in the previous
year the full charge for the estimated bonus was taken to the income
statement in 200506 under the terms of this plan executive directors
received a deferred share bonus representing 100 per cent of salary for
the chief executive and 75 per cent of salary for the executive directors
this bonus was invested notionally in shares at a price of 32175 pence
the payments which are not included in the above table were made in 
april 2007 and were based upon the average share price during march
2007  which was 38211 pence the difference between the estimated and
actual payment has been charged to the income statement in 200607  
consequently the payments were as follows
g watts—£593799
i adamson—£205419
m moran—£205419
m pilkington—£205419
4 benefits include all taxable benefits arising from employment with the
company
5 during the year any contributions in respect of retirement provision that
were not made were paid as a salary supplement the amounts paid in the
year which are included in the above table under benefits were as follows
g watts—£132500
i adamson—£42521
m pilkington—£60447
6 m pilkington resigned as an executive director on 22 march 2007 and 
will be leaving the company at the end of june 2007 after handing over
his responsibilities he had a contract with a oneyear notice period
under the terms of his settlement agreement mr pilkington will receive
the amount is included in the table above £247 839 representing the
value of nine months of mr pilkington’s service contract and statutory
redundancy pay
directors’ emoluments audited information
compensation
for loss 2007 2006
salaries and fees bonus benefits of office total total
£’000 £’000 £’000 £’000 £’000 £’000
nonexecutive chairman
g corbett 180——— 18 0 12 0
executive
g watts 530 609 1 63 — 1 302 1 429
i adamson 248 248 62 — 558 577
m moran 248 248 1 8 — 514 566
nonexecutive
r adam 35 ——— 35 35
a catalano 30 ——— 30 30
s murray 30 ——— 30 30
p read 40 ——— 40 40
former director
m pilkington 242 206 79 248 775 580 directors’ pensions audited information
the following directors received contributions as detailed below
2007 2006
company contribution company contribution
£’000 £’000
g watts 20 26
i adamson 29 18
m moran 62 9
former director
m pilkington 18 15
i adamson
as noted mr adamson is a member of a defined benefit scheme details are given below
£
accrued benefit at 31 march 2006 61 60
accrued benefit at 31 march 2007 6335
increase in accrued benefits excluding inflation 48
increase in accrued benefits including inflation 17 5
t ransfer value of increase in accrued benefits excluding inflation —
t ransfer value of accrued benefits at 31 march 2006 6 1590
t ransfer value of accrued benefits at 31 march 2007 6 1822
increase in transfer value 232
notes
pension contributions were paid as follows
1 g watts—into a personal pension plan
2 i adamson—into the ssl uk pension scheme and a personal pension plan
3 m moran and m pilkington—into the ssl uk pension scheme
4 during the year the company contributed 10 per cent of any bonus 
sacrificed into the executive directors’ pension plan the amounts paid 
in the year included in the above table were as follows
g watts —£19545
i adamson—£10000
m pilkington—£18400
directors’ interests in shares audited information
shareholdings
the following table shows the beneficial interests of the directors who held office at the end of the year in the ordinary shares of the company
shareholdings shareholdings
as at as at
31 march 2007 31 march 2006
directors as at 31 march 2007
r adam 1500 1500
i adamson 1 5626 1 5626
a catalano 1500 1500
g corbett 32500 32500
m moran 1797 1797
s murray — — 
p read 5000 5000
g watts 50000 40000
note
no director held a nonbeneficial interest in any shares remuneration report
continued
44
—
45
remuneration report
option schemes
full details of the options over ordinary shares in the company held by executive directors who served during the year and any movements in those options
are shown below
as at lapsed in as at exercise exercisable exercisable
note 310306 the period 310307 price p from to
current directors
g watts
1996 scheme 11 2 6 75698 — 75698 4835 1 90304 1 90308
11 2 6 72260 — 72260 5065 1 70704 1 70711
12 2 98305 — 98305 2950 1 80705 1 80712
14 2 1 16232 — 1 16232 2495 281105 281109
saye scheme 3997 — 3997 2370 010408 011008
total 366492 — 366492
i adamson
1996 scheme 11 2 6 1 0000 1 0000 — 7700 210602 210606
11 2 6 20996 — 20996 7425 1 40603 1 40607
11 2 6 30000 — 30000 5000 020704 020708
12 2 54915 — 54915 2950 1 80705 1 80712
14 2 48697 — 48697 2495 281105 281109
saye scheme 5527 — 5527 2080 010408 011008
2091 — 2091 2370 010410 011010
total 1 72226 — 1 62226
m moran
1996 scheme 13 2 72815 — 72815 3090 1 10607 1 10614
14 2 72815 — 72815 3090 1 10607 1 10611
saye scheme 6972 — 6972 2370 010410 011010
total 1 52602 — 1 52602
former director
m pilkington
1996 scheme 12 2  62711 — 62711 2950 1 80705 1 80712
14 2  55611 — 55611 2495 281105 281109
saye scheme  7896 — 7896 2080 010408 011008
total 1 26218 — 1 26218
notes
11 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 2 per cent per annum this condition has 
not been met
12 exercise is subject to growth in normalised earnings per share for three
years commencing on 1 april 2002 exceeding the growth in the retail
price index by no less than 2 per cent per annum this condition has
been met
13 exercise is subject to growth in normalised earnings per share for 
three years commencing on 1 april 2004 exceeding the growth in the
retail price index by no less than 3 per cent per annum this condition 
has been met
14 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 3 per cent per annum and tsr of the company when
compared to tsr of companies of the ftse 250 reaching sixth decile 
for 50 per cent of the option to become exercisable between sixth and
eighth for a pro rata 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 the tsr condition has not been met
2 following the disposal of the group’s medical business and the
resultant reduction in earnings the committee reviewed the 
performance conditions attaching to options granted under the 
ssl 1996 executive share option scheme it was agreed that the
performance criteria should be rebased to fairly compare historical
earnings with those in the ongoing business but the rebased figures
should be no less stretching than the previous targets given the 
share price at the times of grants which  was in excess of 480 pence 
the committee determined that only earnings since the financial 
year ended 31 march 2002 would be reviewed consequently the
earnings per share figures for the financial years ended 2002 2003 
and 2004 were rebased the calculations to determine the new figures
have been independently checked by ernst  young llp although 
ernst  young llp express no opinion on the accuracy of the base 
data and the appropriateness of the underlying assumptions
3 no options were exercised in the period or the previous period
4 there are no performance criteria for exercise of options under the 
saye scheme
5 the market price of the company’s shares was 40025 pence on 31 march
2007 and ranged from 26200 pence to 41475 pence during the year 
6 these grants are exercisable subject to the performance conditions
being met 
7  no options were granted in the period
8 options marked  indicates the number of options up to date 
of leaving the board — 22 march 2007 in the case of m pilkington 
mr pilkington will have 12 months from his date of leaving to exercise 
any executive share options which have vested to him performance graph
the graph shows the company’s t otal shareholder return performance
compared with that of the ftse 350 index this index was selected as an 
appropriate comparator index because it is a broad equity market index 
of which ssl is a constituent
approved by the board and signed on its behalf by
peter read
chairman of the remuneration committee
21 may 2007
performance share plan
performance performance performance performance performance
shares as at shares awarded shares released shares lapsed shares as at
310306
1
in the period
2
in the period in the period 310307
current directors
g watts 1 71880 1 87876 — — 359756
i adamson 79279 87734 — — 1 67013
m moran 79279 87734 — — 1 67013
former director
m pilkington
3
79279 87734 — — 1 67013
notes
1 the vesting of this award is subject to the following earnings per share
growth over a period of three years commencing on 1 april 2005
average annual eps growth percentage of performance share award 
that vests
 rpi  15 per cent none
rpi  15 per cent ie 45 per cent over three years 15
rpi  30 per cent or more ie 90 per cent over three years 100
between the above points  between 15 and 100
the market price on date of award was 2915 pence the award price 
was 29090 pence being the average of the middle market quotations 
for an ssl share derived from the official list of the ukla for the five
consecutive dealing days immediately preceding the date of award
2 the vesting of this award is subject to the following earnings per share
growth over a period of three years commencing on 1 april 2006
average annual eps growth percentage of performance share award 
that vests
 rpi  10 per cent none
rpi  10 per cent ie 30 per cent over three years 15
rpi  20 per cent or more ie 60 per cent over three years 100
between the above points pro rata between 15 and 100
the market price on date of award was 2795 pence the award price 
was 2821 pence being the average of the middle market quotations 
for an ssl share derived from the official list of the ukla for the five
consecutive dealing days immediately preceding the date of award
3 this indicates the number of shares awarded up to date of leaving the
board—22 march 2007 in the case of m pilkington under the terms 
of his settlement agreement mr pilkington will receive a cash sum in
consideration of his entitlement to awards granted under the performance
share plan in 2005 and 2006 the terms of the psp allow for the early
release of awards to good leavers but scaled back to recognise the
shorter period of service than the awards were originally intended 
to cover mr pilkington will be entitled to the value of 80374 shares
calculated by reference to the average share price during june 2007  
this reflects a scaling back for the time served during each award period 
these amounts will be paid following mr pilkington’s departure from the
company in june 2007 
there has been no change in interests of serving directors between 31 march 2007 and 21 may 2007  
0
25
50
75
100
125
150
mar 02 mar 03 mar 04 mar 05 mar 06 mar 07
ssl international                             ftse 350 statement of directors’ responsibilities 
in respect of the annual report and the 
financial statements
the directors are responsible for preparing the annual report and the
group and parent company financial statements in accordance with
applicable law and regulations 
company law requires the directors to prepare group and parent 
company financial statements for each financial year under that law they
are required to prepare the group financial statements in accordance with
ifrss as adopted by the eu and applicable law and have elected to prepare
the parent company financial statements in accordance with uk accounting
standards and applicable law uk generally accepted accounting practice 
the group financial statements are required by law and ifrss as adopted
by the eu to present fairly the financial position and performance of the
group the companies act 1985 provides in relation to such financial
statements that references in the relevant part of that act to financial
statements giving a true and fair view are references to their achieving 
a fair presentation 
the parent company financial statements are required by law to give a true
and fair view of the state of affairs of the parent company
in preparing each of the group and parent company financial statements
the directors are required to 
—
select suitable accounting policies and then apply them consistently 
—
make judgements and estimates that are reasonable and prudent
—
for the group financial statements state whether they have been
prepared in accordance with ifrss as adopted by the eu 
—
for the parent company financial statements state whether applicable 
uk accounting standards have been followed subject to any material
departures disclosed and explained in the parent company financial
statements and 
—
prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the group and the parent company will
continue in business
the directors are responsible for keeping proper accounting records that
disclose with reasonable accuracy at any time the financial position of the
parent company and enable them to ensure that its financial statements
comply with the companies act 1985 they have general responsibility for
taking such steps as are reasonably open to them to safeguard the assets 
of the group and to prevent and detect fraud and other irregularities 
under applicable law and regulations the directors are also responsible 
for preparing a directors’ report directors’ remuneration report and
corporate governance statement that comply with that law and 
those regulations 
the directors are responsible for the maintenance and integrity of the
corporate and financial information included on the company’s website
legislation in the uk governing the preparation and dissemination of
financial statements may differ from legislation in other jurisdictions
46
—
47
statement of directors’ responsibilities
independent auditors’ report independent auditors’ report to 
the members of ssl international plc
we have audited the group and parent company financial statements 
the ‘financial statements’ of ssl international plc for the year ended 
31 march 2007 which comprise the consolidated income statement 
the consolidated and parent company balance sheets the consolidated
statement of cash flows the consolidated statement of recognised
income and expense and the related notes these financial statements
have been prepared under the accounting policies set out therein 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’ responsibilities for preparing the annual report and 
the group financial statements in accordance with applicable law and
international financial reporting standards ‘ifrss’ as adopted by the 
eu and for preparing the parent company financial statements and the
directors’ remuneration report in accordance with applicable law and 
uk accounting standards uk generally accepted accounting practice 
are set out in the statement of directors’ responsibilities on page 46
our responsibility is to audit the financial statements and the part of the
directors’ remuneration report to be audited in accordance with relevant
legal and regulatory requirements and international standards on auditing
uk and ireland
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 and as regards the
group financial statements article 4 of the ias regulation we also report 
to you whether in our opinion the information given in the directors’ report
is consistent with the financial statements the information given in the
directors’ report includes that information presented in the chairman’s
message chief executive’s review and financial review that is cross
referenced from the business review section of the directors’ report 
in additionwe report to you if  in our opinion 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
regarding directors’ remuneration and other transactions is not disclosed
we review whether the corporate governance statement reflects the
company’s compliance with the nine provisions of the 2003 combined
code specified for our review by the listing rules of the financial services
authority 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 
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 
we conducted our audit in accordance with international standards on
auditing uk and ireland 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 and company’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 group financial statements give a true and fair view in accordance 
with ifrss as adopted by the eu of the state of the group’s affairs as at 
31 march 2007 and of its profit for the year then ended
—
the group financial statements have been properly prepared in accordance
with the companies act 1985 and article 4 of the ias regulation
—
the parent company financial statements give a true and fair view in
accordance with uk generally accepted accounting practice of the 
state of the parent company’s affairs as at 31 march 2007
—
the parent company financial statements and the part of the directors’
remuneration report to be audited have been properly prepared in
accordance with the companies act 1985 and
—
the information given in the directors’ report is consistent with the
financial statements
kpmg audit plc 
chartered accountants 
registered auditor
8 salisbury square
london ec4y 8bb
21 may 2007 consolidated income statement
for the year ended 31 march 2007
2007 2006
total total
note £m £m
revenue
existing operations 4777 4506
acquisitions—acquisition of former associate 25 —
t otal revenue 6 4802 4506
cost of sales 1 957 1 770
gross profit 2845 2736
distribution expenses 1 449 1 422 
administrative expenses 853 844
operating profit
existing operations 529 470
acquisitions—acquisition of former associate 14 —
t otal operating profit 62 543 470
financial income 6 1 20 92
financial expenses 6 212 226
net financing costs 63 92 1 34
share of profit of associates net of tax 69 18 21
profit before taxation 469 357
income tax expense 46 1 31 97
profit for the financial year 6 338 260
attributable to
equity holders of the parent 325 242
minority interest 19 13 18
profit for the financial year 338 260
basic earnings per share pence 5 1 71 1 28
diluted earnings per share pence 5 1 70 1 27
48
—
49
consolidated income statement
consolidated balance sheet consolidated balance sheet
as at 31 march 2007
2007 2006
note £m £m
assets
property plant and equipment 7 628 699 
goodwill and intangible assets 8 992 817 
deferred tax assets 4 317 431 
investments in associates 9 — 25 
t rade and other receivables 11 27 27 
t otal noncurrent assets 1 964 1 999 
inventories 10 845 864 
t rade and other receivables 11 1 471 1 431 
current tax asset 10 07 
cash and cash equivalents 12 403 355 
t otal current assets 2729 2657 
t otal assets 4693 4656 
liabilities
t rade and other payables 13 1 1 74 1 1 16 
financial liabilities 15 554 473 
provisions 16 30 1 78 
current tax payable 14 56 35 
t otal current liabilities 1 814 1 802
financial liabilities 15 739 800 
deferred tax liabilities 4 86 92 
employee benefits 17 694 9 15
provisions 16 1 01 81 
t ax payable 1 87 1 89 
other payables 13 08 22
t otal noncurrent liabilities 1 815 2099
t otal liabilities 3629 3901 
net assets 1 064 755
equity
issued capital 19 1 90 1 90 
other reserves 19 1 800 1 783 
cumulative foreign exchange reserve 19 10 45 
retained earnings 19 1 004 1 348
t otal equity attributable to equity holders of the parent 976 670 
minority interest 19 88 85 
t otal equity 1 064 755 
the financial statements on pages 48 to 85 were approved by the board of directors on 21 may 2007 and were signed on its behalf by
m moran
director consolidated statement of recognised income and expense
for the year ended 31 march 2007
2007 2006
note £m £m
actuarial gainslosses on defined benefit plans 17 1 74 1 31
currency translation differences on foreign currency net investments 55 44
t axation on gains and losses recognised directly in equity 4 59 40 
income and expense recognised directly in equity 60 47
profit for the financial year 338 260 
t otal recognised income and expense for the year 19 398 213 
attributable to
equity holders of the parent 19 385 1 95 
minority interest 19 13 18 
398 213 
50
—
51
consolidated statement of recognised income and expense
consolidated statement of cash flows  consolidated statement of cash flows 
for the year ended 31 march 2007
2007 2006
note £m £m
cash flows from operating activities
profit for the financial year 338 260 
adjustments for
depreciation 7 1 02 1 11 
amortisation of intangibles 8 09 11 
impairment of goodwill 8 20 —
sharebased payment charge 18 23 16 
interest income 3 1 20 92
interest expense 3 212 226 
share of profit of associate 9 18 21
loss on sale of property plant and equipment 14 —
income tax expense 4 1 31 97 
operating profit before changes in working capital and provisions 711 608 
increasedecrease in trade and other receivables 85 39 
decreaseincrease in inventories 05 1 78
increase in trade and other payables 52 12 
decrease in provisions and employee benefits 1 89 1 61
cash generated from the operations 494 320 
interest paid 89 98 
income taxes paid 60 85 
dividend paid to minority interests 19 02 23 
net cash from operating activities 343 1 14 
cash flows from investing activities
proceeds from sale of plant and equipment 01 06 
interest received 08 12 
dividend received from associate — 33 
acquisition of property plant and equipment 55 57
acquisition of intangible assets 29 28
acquisition of subsidiary net of cash acquired 9 1 36 —
payment of deferred consideration 08 —
net cash from investing activities 219 34 
cash flows from financing activities
proceeds from issue of share capital 19 17 08 
increase inrepayment of borrowings 21 67 1 13 
payment of finance lease liabilities 21 07 09 
dividends 20 1 24 1 18 
net cash from financing activities 47 232
net increasedecrease in cash and cash equivalents 77 1 52
cash and cash equivalents and bank overdraft at start of year 208 352 
effect of exchange rate fluctuations on cash held 21 14 08 
cash and cash equivalents and bank overdraft at end of year 12 271 208 notes to the consolidated financial statements
financial and operating policies of an entity so as to obtain benefits from 
its activities the financial statements of subsidiaries are included in the
consolidated financial information from the date control commences until
the date that control ceases
associates
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 over
which it has the power to exert significant influence but not control over 
the financial and operating policy decisions the group’s share of results 
of its associates is included in the consolidated income statement on the
equity accounting basis from the date that significant influence commences
until the date that significant influence ceases the holding value of associates
in the group’s balance sheet is calculated by reference to the group’s cost
of investment plus postacquisition changes in the group’s share of the 
net assets of the entity less any impairment in value the carrying value of
investments in associates includes any acquired goodwill
where the reporting date of the associated undertaking differs from 
that of the group the group’s share of results included in the consolidated
income statement is based on rolled forward information which coincides
with the group’s reporting date
t ransactions eliminated on consolidation
intragroup balances and any unrealised gains and losses or income and
expenses arising from intragroup transactions are eliminated in preparing
the consolidated financial statements unrealised gains arising from
transactions with associates are eliminated to the extent of the group’s
interest in the entity unrealised losses are eliminated in the same way 
as unrealised gains but only to the extent that there is no evidence 
of impairment
c  use of estimates and judgements
the preparation of the financial statements requires management to make
judgements estimates and assumptions that affect the application of the
accounting policies and the reported amounts of assets liabilities income
and expenses actual results may differ from these estimates
estimates and underlying assumptions are reviewed on an ongoing basis
revisions to accounting estimates are recognised in the period in which 
the estimate is revised and in any future periods affected
in particular information about significant areas of estimation uncertainty
and critical judgements in applying accounting policies that have the most
significant effect on the amount recognised in the financial statements are
described in the following notes
note 4—income tax expense
note 8—goodwill and intangible assets
note 15—financial liabilities
note 16—provisions for liabilities and charges
note 17—postretirement benefits
note 18—employee costs and share option plans for employees
d  revenue
revenue represents the fair value of the consideration receivable 
being value of goods provided during the year net of trade discounts 
cash discounts retrospective and other rebates value added and sales
taxes revenue from the sale of goods is recognised upon transfer to the
customer of significant risks and rewards of ownership generally this 
will be when goods are dispatched to the customer credit note reserves 
are provided at each periodend to account for management estimates 
of customer returns and are deducted from revenue any returns in 
excess of the amount provided would also be deducted from revenue
1 group accounting policies
in the financial statements and related notes the term ‘company’ refers 
to ssl international plc a company incorporated in the uk the group
financial statements consolidate those of the company and its subsidiaries
together referred to as the ‘group’ or ‘ssl’ and equity account the group’s
interest in associates
a  basis of preparation
the consolidated financial statements are prepared on a going concern
basis in pounds sterling rounded to the nearest hundred thousand and 
are prepared on an historical cost basis modified to include revaluation 
to fair value of certain financial instruments as described below in
accordance with international financial reporting standards ‘ifrss’ as
adopted by the eu adopted ifrss the accounting policies set out below
have been applied consistently in dealing with items which are considered
material in relation to the financial statements except as noted below
in these financial statements the following new statements have been
adopted for the first time
an amendment to ias 21 ‘the effects of changes in foreign exchange rates
—net investment in a foreign operation’ was issued in december 2005 
and was endorsed by the eu in may 2006 it confirms that loans from other
entities within the group may form part of a net investment in a foreign
operation so long as settlement is not planned and not likely to occur 
within the foreseeable future it also broadens the range of currencies in
which loans can be denominated and still be considered part of the net
investment it is effective for all periods beginning on or after 1 january
2006 the adoption has no material impact upon the results or net assets
of ssl international plc
ifric 4 ’determining whether an arrangement contains a lease’ was 
issued in december 2004 and endorsed by the eu in november 2005 
it specifies the criteria under which an arrangement is or contains a lease
and therefore should be accounted for under ias 17 leases it is effective
for all periods beginning on or after 1 january 2006 the adoption has no
material impact upon the results or net assets of ssl international plc
ifric 6 ‘liabilities arising from participating in a specific market—waste
electrical and electronic equipment’ was issued in september 2005 and
endorsed by the eu in january 2006 it clarifies when certain producers 
of electrical goods are required to recognise a liability under ias 37 for 
the cost of waste management relating to the decommissioning of waste
electrical and electronic equipment supplied to private households it 
also clarifies the obligations of commercial users of waste electrical and
electronic equipment it is effective for all periods beginning on or after 
1 december 2005 the adoption has no material impact upon the results 
or net assets of ssl international plc
the parent company financial statements are prepared in accordance 
with uk generally accepted accounting practices the parent company
accounting policies are disclosed on pages 87 to 88
ssl’s management considers the following to be the most important
accounting policies in the context of the group’s operations
b  basis of consolidation
the group financial statements consist of the financial statements of 
the company entities controlled by the company its subsidiaries and 
the group’s share of interests in associates
subsidiaries
subsidiaries are entities controlled by the company control exists when
the company has the power either directly or indirectly to govern the
52
—
53
notes to the consolidated financial statements h  property plant and equipment
property plant and equipment assets are carried at cost less accumulated
depreciation and any recognised impairment in value depreciation is
provided to write property plant and equipment down to a residual value
over their estimated useful economic lives on a straightline basis at the
following annual rates 
freehold land no depreciation is charged on
freehold land
freehold and leasehold buildings 2 per cent of cost or over the life 
of the lease if less than 50 years 
motor vehicles 25 per cent of cost
plant equipment fixtures and fittings 7 per cent to 25 per cent of cost 
assets under the course of no depreciation is charged on assets 
construction under the course of construction
the residual value and estimated useful economic life for significant
property plant and equipment is reassessed annually 
i  leases
leases in terms of which the group assumes substantially all the risks and
rewards of ownership are classified as finance leases all other leases are
accounted for as operating leases
assets held under finance leases are capitalised and included within tangible
fixed assets at the lower of fair value and the present value of minimum lease
payments each asset is depreciated over the shorter of the lease term or
the asset’s useful life
the obligations related to finance leases net of finance lease charges in
respect of future periods are included within creditors the interest element
of the rental agreement is charged to the income statement over the term 
of the lease to reflect a constant rate of interest on the outstanding capital
amount payable
costs in respect of operating leases are charged to the income statement
on a straightline basis over the term of the lease lease incentives are
spread over the term of the lease 
 j foreign currency transactions
t ransactions in foreign currencies are recorded using the rate of exchange
ruling at the date of the transaction monetary assets and liabilities
denominated in foreign currencies are translated using the rate of exchange
ruling at the balance sheet date and the foreign exchange arising is taken 
to the income statement 
financial statement of foreign operations
income statements of foreign operations are translated into sterling 
at the average rate applicable to the respective accounting period as 
an approximation of the rate at the date the transactions took place 
assets and liabilities including goodwill of foreign operations are translated
using the rate of exchange ruling at the balance sheet date gains or losses
on translations of foreign operations are included as a movement on the
foreign exchange reserve on a subsequent disposal such gains or losses
will form part of the profitloss on disposal within the income statement
gains and losses prior to adoption of ifrs are deemed to be nil
net investment in foreign operations
the portion of the gain or loss on an instrument used to hedge a net
investment in a foreign operation that is determined to be an effective
hedge is included as a movement in the foreign exchange reserve on a
subsequent disposal such gains or losses will form part of the profitloss 
on disposal within the income statement any ineffective portion is
recognised immediately in profit or loss 
e  business combinations and goodwill
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 liabilities and contingent liabilities acquired
is capitalised and is subject to impairment review annually and when there is
any indication that the carrying value may not be recoverable 
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
charging the carrying value of any related goodwill 
prior to transition to ifrs goodwill was amortised in line with uk gaap 
on transition to ifrs the goodwill balance was frozen
the group’s policy up to and including the year ended 28 february 1998
was to write off goodwill arising upon acquisition against reserves under
ifrs 1 and ifrs 3 such goodwill will remain eliminated against reserves and
will not form part of any subsequent profitloss on disposal 
f  other intangible assets
intangible assets that are acquired which can be separately identified and
the cost of which can be measured reliably are capitalised and amortised
on a straightline basis over their estimated useful economic lives subject 
to any recognised impairment in value usually between 520 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 the useful economic life for
significant assets is reviewed annually
where an asset is deemed to have an indefinite useful economic life it is not
amortised but is instead subject to annual impairment review to ensure
the carrying value of the asset is supportable
g  impairment
the carrying value of the group’s nonfinancial assets other than inventories
and deferred tax assets are reviewed at each reporting date to determine
whether there is any indication of impairment if any such indication exists
then the asset’s recoverable amount is estimated f or goodwill and intangible
assets that have indefinite lives the recoverable amount is estimated at each
reporting date
an impairment loss is recognised if the carrying amount of an asset or its
cashgenerating unit exceeds its recoverable amount a cashgenerating
unit is the smallest identifiable asset group that generates cash flows that
are largely independent from other assets and groups impairment losses
are recognised in profit or loss impairment losses recognised in respect of
cashgenerating units are allocated first to reduce the carrying value of any
goodwill allocated to the units and then to reduce the carrying amount of
the other assets in the unit group of units on a pro rata basis
the recoverable amount of an asset or cashgenerating unit is the greater 
of its value in use and its fair value less costs to sell in assessing value in 
use the estimated future cash flows are discounted to their present value
using a pretax discount rate that reflects current market assessments 
of the time value of money and the risks specific to the asset
an impairment loss in respect of goodwill is not reversed in respect of other
assets impairment losses recognised in prior periods are assessed at each
reporting date for any indications that the loss has decreased or no longer
exists an impairment loss is reversed if there has been a change in estimates
used to determine the recoverable amount an impairment loss is reversed
only to the extent that the asset’s carrying amount does not exceed the
carrying amount that would have been determined net of depreciation 
or amortisation if no impairment loss had been recognised 54
—
55
notes to the consolidated financial statements
m research 
research expenditure is charged to income in the year in which it is incurred
n cash equivalents
cash equivalents are current asset investments which are disposable
without curtailing or disrupting the business and are either readily
convertible into known amounts of cash at or close to their carrying values
or traded in an active market cash equivalents comprise term deposits 
of less than three months other than cash government securities and
investment in money market managed funds
o inventories
inventories are stated at the lower of cost and net realisable value in
determining the cost of raw materials consumables and goods for resale
the fifo method is used and includes expenditure incurred in acquiring 
the inventories and bringing them to their existing location and condition
for work in progress and finished goods cost is taken as production cost
which includes an appropriate proportion of overheads based upon 
normal operating capacity
net realisable value is determined as estimated selling price less all
estimated costs of completion and costs to be incurred in marketing 
selling and distribution
p grant income
revenue grants are recognised in the income statement as a reduction in
the related expense
capital grants are shown in deferred income within the balance sheet 
and released to match the depreciation charge on the associated asset
q income tax
income tax on the profit or loss for the period comprises current and
deferred tax income tax is recognised in the income statement except 
to the extent that it relates to items recognised directly in equity in which
case it is recognised in equity
current tax is the expected tax payable on the taxable income for the year
using tax rates enacted or substantively enacted at the balance sheet date
and any adjustment to tax payable in respect of previous years
deferred tax is provided using the balance sheet liability method providing
for temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for taxation
purposes the amount of deferred tax provided is based upon the expected
manner of realisation or settlement of the carrying values of the assets or
liabilities using tax rates enacted or substantively enacted at the balance
sheet date
a deferred tax asset is recognised only to the extent that it is probable that
future taxable profits will be available against which the asset can be utilised
deferred tax assets are reduced to the extent that it is no longer probable
that sufficient taxable profits will be available to allow all or part of the asset
to be realised
r provisions
a provision is recognised in the balance sheet when the group has a
present legal or constructive obligation as a result of a past event and it is
probable that an outflow of economic benefits will be required to settle the
obligation if the effect is material provisions are determined by discounting
the expected future cash flows at a pretax rate that reflects current market
assessments of the time value of money and where appropriate the risks
specific to the liability
k postretirement benefits
defined contribution plans
obligations for defined contribution plans are recognised as an expense 
in the income statement when they are due
defined benefit plans
the group’s net obligation in respect of defined benefit pension plans is
calculated separately for each plan by estimating the amount of future
benefits that employees have earned in return for their service in the
current and prior periods that benefit is discounted to determine its present
value and any unrecognised past service costs and the fair value of any plan
assets are deducted the discount rate is the yield at the reporting date on
aa creditrated bonds that have maturity dates approximating the terms of
the group’s obligations the calculation is performed by a qualified actuary
using the projected unit credit method when the calculation results in a
benefit to the group the recognised asset is limited to the net total of any
unrecognised past service costs and the present value of any future
refunds from the plan or reductions in future contributions to the plan
when the benefits of a plan are improved the portion of the increased
benefit relating to past service by employees is recognised in the income
statement on a straightline basis over the average period until the 
benefits become vested t o the extent that the benefits vest immediately
the expense is recognised immediately in the income statement
l employee benefits
sharebased payment transactions
the group operates a number of employee share schemes the fair value
of employee share options granted is recognised as an employee expense
with a corresponding increase in equity as equity settled payments the 
fair value is measured at grant date using an appropriate valuation model
taking into account the terms and conditions upon which the share options
were granted these will include both performance and service conditions
the resulting cost is charged to the income statement over the vesting
period of the options at each balance sheet date the cumulative charge 
in respect of each option plan is adjusted to reflect expected and actual
levels of options vesting
the fair value of the amount payable to employees in respect of share
appreciation rights which are settled in cash is recognised as an expense
with a corresponding increase in liabilities over the period in which the
employees become unconditionally entitled to payment the liability is
remeasured at each reporting date and at settlement date any changes
in the fair value are recognised within the income statement as a 
personnel expense
for options granted before 7 november 2002 the recognition and
measurement principles of ifrs 2 have not been applied in accordance
with the transitional provisions in ifrs 1
overseas termination benefits
the group’s net obligation in respect of termination benefits other than
pension plans is the amount of future benefit that employees and agents
have earned in return for their service in current and prior periods that
benefit is discounted to determine the present value and the fair value of
any related asset is deducted the discount rate is the yield at the reporting
date on aa creditrated bonds that have maturity dates approximating the
terms of the group’s obligations the calculation is performed by a qualified
actuary using the projected unit credit method any actuarial gains or losses
are recognised directly in equity immediately
notes to the consolidated financial statements
continued
1 group accounting policies continued s financial instruments
the group uses derivative financial instruments derivatives to hedge its
exposure to foreign exchange and interest rate risks arising from operational
financing and investment activities the group does not hold or issue
derivative financial instruments for trading purposes
derivative financial instruments are recognised at fair value the fair value of
derivative financial instruments is determined by reference to discounted
cash flows or option valuation models where derivatives do not qualify for
hedge accounting any gains or losses on remeasurement are immediately
recognised in the income statement where derivatives qualify for hedge
accounting recognition of any resultant gain or loss depends on the nature
of the hedge relationship and the item being hedged the effectiveness 
of hedges is tested at each periodend to ensure that the hedge 
remains effective
interestbearing borrowings are initially at fair value less attributable
transaction costs subsequent to initial recognition interestbearing
borrowings are stated at amortised cost with any difference between cost
and redemption value being recognised in the income statement over the
period of the borrowings in an effective interest basis
fair value hedging
derivative financial instruments are classified as fair value hedges when
they hedge the group’s exposure to changes in the fair value of a recognised
asset or liability any gain or loss from remeasuring the hedging instrument 
is recognised immediately in the income statement any change in the fair
value of the hedged item attributable to the hedged risk is adjusted against
the carrying value of the hedged item and recognised immediately in the
income statement
t treasury shares
when share capital recognised as equity is repurchased the amount of the
consideration paid including directly attributable costs is recognised as a
change in equity repurchased shares are classified as treasury shares and
presented as a deduction from total equity
accounting standards issued but not adopted
ifrs 7 ‘financial instruments disclosures’ was issued in august 2005 and
endorsed by the eu in january 2006 ifrs 7 and the amendment to ias 2
require extensive disclosure about the significance of financial position 
and performance and qualitative and quantitive disclosures on the nature
and extent of risks it is effective for annual periods beginning on or after 
1 january 2007  the adoption will have no impact upon the results or net
assets of ssl international plc
ifric 8 ‘scope of ifrs 2 sharebased payment’ was issued in january 2006
and endorsed by the eu in september 2006 it provides guidance on
accounting for sharebased payment transactions when the fair value of
the identifiable goods or services received by an entity is less than the fair
value of the sharebased payment it is effective for all periods beginning 
on or after 1 may 2006 the adoption will have no impact upon the results 
or net assets of ssl international plc
ifric 9 ‘reassessment of embedded derivatives’ was issued in march 2006
and endorsed by the eu in september 2006 it states that reassessment of
whether an embedded derivative should be separated from the underlying
host contract should be made only when there are changes to the contract
it is effective for all periods beginning on or after 1 june 2006 the adoption
will have no impact upon the results or net assets of ssl international plc 2 operating profit
2007 2006 
note £m £m
operating profit 543 470
chargescredits included in the above
—for depreciation on owned assets 7 1 01 1 10 
—for depreciation on leased assets 7 01 01 
—for amortisation of intangibles 8 09 11 
—for impairment of goodwill 8 20 — 
research costs 88 82 
loss on sale of property plant and equipment 14 —
group and commercial restructuring 16 — 28 
foreign exchange gainslosses in profit or loss excluding financial instruments 07 24 
fair value movements of forward contract derivatives — 05 
fees payable to kpmg and its associates
—audit of these financial statements 02 02 
—audit of financial statements of subsidiaries 05 05 
—other services relating to taxation 03 03 
—all other services — 03 
t otal fees payable to kpmg and its associates 10 13 
fees payable to other audit firms 01 01
amounts paid to the company’s auditor in respect of services to the company other than the audit of the company’s financial statements have not been
disclosed as the information is required instead to be disclosed on a consolidated basis
3 financial income and expense
2007 2006
note £m £m
financial income
bank and deposit interest 08 12 
expected return on pension scheme assets 17 94 80
net gain on remeasurement of financial assets and liabilities at fair value through profit or loss 18 —
120 92 
financial expense
bank loans and overdraft 27 20
loan notes 60 70
finance leases 01 01
interest on pension scheme liabilities 17 1 24 1 14 
net loss on remeasurement of financial assets and liabilities at fair value through profit or loss — 21
212 226
net financing costs 92 1 34
56
—
57
notes to the consolidated financial statements
notes to the consolidated financial statements
continued 4 income tax expense
t axation recognised in the income statement is as follows 
2007 2006
t otal total
£m £m
current tax expense—continuing operations
current year corporation tax 39 52 
overseas taxation 55 60 
adjustments in respect of prior years 18 12 
76 1 00 
deferred tax expense—continuing operations
origination and reversal of temporary differences 67 25
adjustments in respect of prior years 12 28 
55 03 
t otal income tax expense in the income statement 1 31 97 
t axation has been provided at current tax rates on the profits earned for the year deferred tax income statement amounts in the year arise principally in
respect of the origination and reversal of temporary differences no deferred tax is recognised on the unremitted earnings of overseas subsidiaries and
associates as the earnings are continually reinvested by the group and no tax is expected to be payable on earnings in the foreseeable future
consolidated statement of recognised income and expense
amounts taken to the consolidated statement of recognised income and expense are analysed as follows
2007 2006
£m £m
current tax
t ax relating to defined benefit pension contributions — 1 2 
deferred tax
t ax movements in respect of defined benefit pension liability 59 28 
59 40 
factors affecting future tax charges
the group’s future tax charge depends on the levels and mix of profitability in different jurisdictions and the tax rates applied to those profits the table
below reconciles the current tax charge that would result from applying the uk rate of corporation tax to the group’s total profit before tax and associates 
to the total income tax charge
reconciliation of effective tax rate
2007 2006
£m £m
profit before tax from continuing business 469 357
share of profits of associates net of taxation 18 21 
t otal profit before tax 451 336 
notional taxation charge at uk corporation tax rate of 30 2006 30 1 35 1 00 
nondeductible expenses 05 02 
overseas losses not deductible 17 22 
effect of tax rates in foreign jurisdictions 07 05
elimination of intragroup profit 10 10 
adjustments in respect of prior years 30 40 
other 01 08
1 31 97  notes to the consolidated financial statements
continued
58
—
59
notes to the consolidated financial statements
balance sheet 
deferred taxation assetliability movement
the amounts of deferred taxation accounted for in the group balance sheet and the movements therein comprised the following deferred tax liabilities 
and assets 
balance recognised recognised balance 
1 april 2005 in income in equity 31 march 2006
£m £m £m £m 
deferred tax liabilities 
accelerated capital allowances 65 11 — 54 
deferred capital gains 38 — — 38 
103 11 — 92 
deferred tax assets 
defined benefit pension schemes 241 01 28 268
income tax losses carried forward 36 03 — 33 
capital losses carried forward 38 — — 38 
sharebased payments 03 09 — 12
intragroup profits in stock 37 01 — 38 
other shortterm timing differences 56 14 — 42 
411 08 28 431 
balance recognised recognised balance
1 april 2006 in income in equity 31 march 2007
£m £m £m £m
deferred tax liabilities 
accelerated capital allowances 54 06 
—
48 
deferred capital gains 38 — — 38
92 06 — 86 
deferred tax assets
defined benefit pension schemes 268 13 59 196 
income tax losses carried forward 33 33 — — 
capital losses carried forward 38 — — 38 
sharebased payments 12 03 06 21 
intragroup profits in stock 38 10 — 28 
other shortterm timing differences 42 08 — 34 
431 61 53 317 
unrecognised deferred tax assets 
deferred tax assets have not been recognised in respect of unused income tax losses of £1736 million 2006 £177 2 million and unused capital losses of 
£1494 million 2006 £1411 million the decrease in income tax losses in the year of £36 million is explained by a foreign currency retranslation difference 
of £152 million on losses carried forward at 2006 net of an increase in losses carried forward of £116 million
it is probable that future taxable profit will not be available against which the group can utilise the benefits therefrom included in the losses are us income
tax losses of us1030 million which are unlikely to be available for use due to the change of ownership restrictions
5 earnings per £0 10 ordinary share
earnings per share has been calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares 
in issue during the year
the profit attributable to ordinary shareholders is as follows
2007 2006
£m £m
profit for the year
for basic earnings per share 325 242 
4 income tax expense continued the calculation of diluted earnings per share uses basic earnings as defined above and the basic weighted average number of ordinary shares in issue during
the period adjusted as follows
2007 2006
weighted average number of shares millions 
number of ordinary shares at start of year 1 899 1 895 
effect of shares issued in the year—share options exercised 03 01 
for basic earnings per share 1 902 1 896 
dilutive effect of share options 07 08 
for diluted earnings per share 1 909 1 904 
6 segment information
segment information is presented in the consolidated financial statements in respect of the group’s geographical segments which by location of assets
are the primary basis for reporting the geographical segment reporting format reflects the group’s management and internal reporting structure
intrasegment pricing is determined on an arm’slength basis
segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis
geographical segments
the group is comprised of the following main geographical segments
—united kingdom and continental europe
—americas
—asia pacific and rest of the world
continental europe includes sales offices and manufacturing units within any countries within the european continent
americas includes sales offices within any countries within the north and south american continents
asia pacific and the rest of the world includes sales offices and manufacturing units within any countries that are not within the european north american
and south american continents
geographical segments
2007 2007 2006 2006
by location by location by location by location 
of assets of customers of assets of customers
£m £m £m £m
segment revenue
external
—united kingdom and continental europe 3716 3578 3462 3286
—americas 299 305 298 312 
—asia pacific and rest of the world 787 919 746 908 
4802 4802 4506 4506 
intrasegment 
—united kingdom and continental europe 1709 — 1652 —
—americas —— 03 —
—asia pacific and rest of the world 373 — 274 —
—eliminations 2082 — 1929 —
t otal revenue 4802 4802 4506 4506  notes to the consolidated financial statements
continued
60
—
61
notes to the consolidated financial statements
2007 2006
£m £m
segment result
—united kingdom and continental europe 439 362 
—americas 19 13 
—asia pacific and rest of the world 123 95 
operating profit 543 470 
consolidated segment result
share of profit of associates 18 21 
net financing costs 92 1 34 
income tax 1 31 97
profit for the financial year 338 260 
 share of profit of associates relates wholly to operations based in the asia pacific and rest of the world geographical segment
2007 2007 2006 2006
intangible intangible
property plant amortisation property plant amortisation
and equipment and and equipment and
depreciation impairment depreciation impairment
£m £m £m £m
segment noncash expenditure
—united kingdom and continental europe 89 29 99 11
—americas 01 — 01 —
—asia pacific and rest of the world 12 — 11 —
102 29 111 11 
there was no other significant noncash expenditure of the group
2007 2007 2006 2006
property plant property plant
and equipment intangible and equipment intangible
additions additions additions additions
£m £m £m £m
segment additions
—united kingdom and continental europe 34 33 37 28
—americas —— ——
—asia pacific and rest of the world 26 172 22 —
60 205 59 28 
2007 2006
£m £m
segment assets
—united kingdom and continental europe 3884 3834 
—americas 108 1 17 
—asia pacific and rest of the world 701 705
4693 4656 
segment liabilities
—united kingdom and continental europe 3395 3394
—americas 66 70 
—asia pacific and rest of the world 1 68 437 
3629 3901
consolidated net assets 1 064 755
6 segment information continued business segments
business segments are the group’s secondary basis of reporting the business segments reported reflect the group’s internal management 
reporting format
segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis
2007 2006
£m £m
segment revenue
external
—branded condoms lubricants and devices 1 871 1 623
—footwear 668 663
—footcare 1 000 958
—locally owned brands 723 734
—other consumer 418 402
— thirdparty supply 1 22 1 26 
t otal revenue 4802 4506
2007 2007 2006 2006
segment
segment capital assets capital
assets expenditure restated expenditure
£m £m £m £m
—branded condoms lubricants and devices 1318 27 1285 22 
—footwear 467 03 482 02 
—footcare 824 14 789 16 
—locally owned brands 727 12 716 16 
—other consumer 188 03 213 02 
— thirdparty supply 149 01 176 01 
3673 60 3661 59 
—unallocated 1020 — 995 —
t otal 4693 60 4656 59 
the comparative figures for segmental assets have been restated to be in line with the method of allocation used in the current year as this was considered
to be a more accurate method than that used in the prior year notes to the consolidated financial statements
continued
62
—
63
notes to the consolidated financial statements
7  property plant and equipment
plant
land and equipment and 
buildings motor vehicles total
note £m £m £m 
cost 
at 1 april 2005 335 1338 1 673
additions 24 35 59
t ransfers 05 05 —
disposals 01 26 27
exchange adjustments 04 21 25
at 31 march 2006 and 1 april 2006 367 1363 1 730
additions 06 54 60
acquisition of former associate 9 — 11 11
disposals 04 97 1 01 
exchange adjustments 06 23 29 
at 31 march 2007 363 1308 1671 
depreciation and impairment amounts 
at 1 april 2005 48 877 925
charge for the year 08 103 1 11
disposals 01 19 20 
exchange adjustments 01 14 15 
at 31 march 2006 and 1 april 2006 56 975 1 031
charge for the year 09 93 102 
disposals 02 69 71 
exchange adjustments 02 17 19 
at 31 march 2007 61 982 1043 
carrying amounts 
at 1 april 2005 287 461 748 
at 31 march 2006 and 1 april 2006 311 388 699
at 31 march 2007 302 326 628 
capital expenditure on plant equipment and motor vehicles in the year of £5 4 million comprised £02 million of capitalised finance leases 2006 £0 1 million 
included within plant equipment and motor vehicles are assets held under finance lease with a net book value of £02 million 2006 £01 million 
the carrying value of temporarily idle plant at the year end is £nil 2006 £nil 
group assets held under course of construction total £14 million 2006 £10 million of which £11 million 2006 £04 million is included in plant equipment
and motor vehicles the remainder of assets held under construction is £03 million 2006 £06 million in respect of land and buildings
the net book value of land and buildings is analysed as follows 
2007 2006
£m £m 
freeholds 1 38 1 44 
short leasehold 162 1 64
long leasehold 02 03 
302 311 
the charge for depreciation for the year is recognised as follows in the income statement 
2007 
£m 
cost of sales 47
distribution expenses 01 
administrative expenses 54
102  8 goodwill and intangible assets
note goodwill scholl brand other total
£m £m £m £m
cost
at 1 april 2005 201 602 307 1 1 10
additions 01 — 27 28
disposals ——— —
exchange adjustments — 01 — 01
at 31 march 2006 and 1 april 2006 202 603 334 1 1 39
goodwill arising on acquisition of former associate 9 1 72 — — 1 72
additions — — 33 33
exchange adjustments 01 01 01 01
at 31 march 2007 375 602 366 1 343 
amortisation and impairment losses
at 1 april 2005 72 — 237 309
charge for the year — — 11 11
exchange adjustments 01 — 01 02
at 31 march 2006 and 1 april 2006 73 — 249 322
charge for the year
—
— 09 09
impairment charge 20 — — 20
at 31 march 2007 93 — 258 351 
carrying amounts
at 1 april 2005 1 29 602 70 801
at 31 march 2006 1 29 603 85 817
at 31 march 2007 282 602 1 08 992 
amortisation and impairment charges are recognised within administrative expenses within the income statement 
for the purposes of impairment testing of goodwill the group is regarded as several cashgenerating units one for each component of goodwill recognised
at the balance sheet date and one for all other consumer products the cashgenerating units’ recoverable amounts are based on value in use using
projections of the group’s performance over 1015 years periods reflecting the directors’ best estimates of the cash flows a risk adjusted discount factor
of 68 per cent has been applied to the projections
the impairment charge in the year relates to the impairment of goodwill relating to the remegel locally owned brand an amount is also held within other
intangible assets in relation to this brand the recoverable amount was determined by discounting the future cash flows expected to be generated from 
the continued use of the brand t o determine cash flows budgeted sales of the remegel locally owned brand and operating results were used internal
business plan models were utilised to derive expected future revenue decline of 88 per cent per annum operating margins were expected to decline by 
2 per cent per annum results were projected forward over a period of 12 years and discounted to present value using a risk adjusted discount factor of 
68 per cent the resulting impairment was allocated to the goodwill with no impairment of the amount held within other intangible assets required 
the most significant factors affecting the valuation were the level of operating profit margin associated with the brand and the percentage sales decline 
if sales had been held constant in the valuation model with all other assumptions as described above the impairment charge would have been £10 million
lower an increase in initial operating margin percentage by five percentage points would have reduced the impairment by £04 million and an increase in
initial operating margin percentage by 10 percentage points would have reduced the impairment charge by £08 million
material assets
the scholl brand with a carrying value of £602 million at 31 march 2007  is not amortised the brand has been tested for impairment using the method
described below no charge for impairment was required in the year 
for the purposes of impairment testing of the scholl brand the group is regarded as two cashgenerating units that part relating to scholl branded 
products and that relating to all other consumer products the scholl brand’s recoverable amount was determined by discounting future cash flows
expected to be generated from continuing use of the brand using the following key assumptions
—cash flows for year one were based upon budgeted operating results 
—revenue growth was anticipated at 2 per cent per annum and operating results held at a constant percentage of revenue for a further period of nine years 
this is in line with experience in prior years 
—operating results were then held at the year 10 figures into perpetuity reflecting the directors’ assertion that the brand has an indefinite useful economic
life because of its proven value over long periods and its position in the market which is considered sustainable for the foreseeable future
—a risk adjusted discount factor of 68 per cent was applied to the projections notes to the consolidated financial statements
continued
64
—
65
notes to the consolidated financial statements
for the scholl brand to be impaired with all other assumptions held constant the risk adjusted discount factor would need to increase to 134 per cent
before the brand’s value in use calculation showed any impairment removing the revenue growth from the expected cash flows would decrease the
valuation by £150 million however the brand would still show no impairment a decrease in the operating margin percentage by one percentage point 
would reduce the valuation by £27 8 million however the brand would still show no impairment 
no impairment review has been carried out in the current year for goodwill of £17 2 million arising on the acquisition of the remaining 50 per cent of the
ordinary share capital of qingdao london durex company limited in january 2007 note 9 an impairment review of this goodwill will be carried out in 
the next year and annually thereafter
the remaining goodwill is made up of a number of balances none of which are significant with a total net book value of £110 million 
other intangible assets comprise a number of nonmaterial cashgenerating units 
9 acquisition of former associate
equity accounted shares
2007 2006
£m £m 
cost 
at beginning of year 20 20
acquisition of former associate 20 —
at end of year — 20 
share of postacquisition reserves less losses 
at beginning of year 05 —
retained profits less losses 18 21 
dividends 20 19 
exchange adjustments 02 03 
acquisition of former associate 01 —
at end of year — 05 
balance sheet value at end of year — 25 
balance sheet value at beginning of year 25 20 
 at the start of the year the group held 50 per cent of the ordinary share capital of qingdao london durex company limited incorporated in the peoples’ republic of china 
the principal activity of qingdao london durex company limited is the manufacture of healthcare products in january 2007 the group purchased the remaining 50 per cent of the
company for cash consideration of us 37 5 million following the acquisition the company contributed revenue of £25 million and operating profit £14 million if the acquisition had 
occurred on 1 april 2006 consolidated revenue for the group would have been £4882 million and profit for the year would have been £37 4 million
the acquisition had the following effect on the group’s assets and liabilities at the acquisition date
preacquisition recognised
carrying fair value value on
amounts adjustments acquisition 
£m £m £m 
property plant and equipment 11 — 11
inventories 09 — 09 
cash and cash equivalents 56 — 56 
t rade and other payables 35 — 35 
current tax payable —— 
net identifiable assets and liabilities 41 — 41
less amounts recognised as share of associate prior to acquisition 21 
goodwill on acquisition note 8 1 72 
consideration paid satisfied in cash 1 92 
less cash acquired 56 
net cash outflow 136 
 includes legal fees of £01 million
the excess of fair value of consideration over the fair value of the assets acquired has been attributed wholly to goodwill as the group supplies the brand 
and knowhow to the business and existing customer relationships were terminated as part of the sale and purchase agreement 
8 goodwill and intangible assets continued the goodwill acquired represents the benefits of securing control of the financial and operating policies of the business this is expected to lead to
increased profits as a result of the establishment of new distributor relationships at higher margins to those achieved previously and the opportunity to
establish the scholl brand alongside durex in this key market in time the acquisition will also provide synergies to the group’s manufacturing cost base 
by providing additional condom manufacturing capacity to support the group supply chain the group has not recognised as part of the acquisition an
asset in relation to the durex brand as the group already owned the brand worldwide prior to the acquisition 
qingdao london durex company limited has an annual reporting date of 31 december the group’s share of results included in the consolidated income
statement are derived from audited information as at 31 march 2007  
investments in associates 
financial information is given based on a 100 per cent holding for both years figures for 2007 show the position to the date of acquisition
2007 2006
£m £m 
assets 76 56
liabilities 35 06
equity 41 50 
revenues 80 98 
profit 36 42 
qingdao london durex company limited had no contingent liabilities at 31 march 2006 or at the date of acquisition 
10 inventories
2007 2006
£m £m 
raw materials and consumables 1 07 1 09 
inventories and work in progress 55 70 
finished goods and goods for resale 683 685 
at end of year 845 864 
t otal gross inventories 935 945 
inventory provision 90 81 
845 864 
analysis of inventory provision movements in the year
at beginning of year 81 1 11 
income statement charge 54 29 
amounts utilised 41 62 
exchange movements 04 03 
at end of year 90 81 
 the prior year disclosure of gross inventories and provisions has been restated to include all elements of the cost of inventory within the gross figure the provision movement for the 
prior year has been restated to reflect this change
amount of inventories recognised as an expense within cost of sales amounted to £177 7 million 2006 £1704 million  notes to the consolidated financial statements
continued
66
—
67
notes to the consolidated financial statements
11 trade and other receivables
2007 2006
£m £m 
current
gross trade receivables 1 378 1 403
less amounts provided for doubtful accounts 39 66 
1 339 1 337 
amount owed by associated undertakings 01 —
other prepayments and accrued income 62 33
other receivables 69 61 
1 471 1 431 
noncurrent 
other receivables 27 27 
1 498 1 458 
provision for doubtful debts
at beginning of year 66 63 
income statement charge 21 45 
amounts released in the year 07 —
amounts utilised and other movements 36 44 
exchange movements 05 02 
at end of year 39 66 
 the prior year disclosure of gross trade receivables and provisions for doubtful accounts have been restated to exclude rebate accruals from the provision figure and show them instead 
as a reduction in trade receivables this has no impact upon the net trade receivable number disclosed the provision movement for the prior year has been restated to reflect this change
current trade and other receivables include amounts due to be settled in sterling  euros us dollars chinese renminbi and other currencies noncurrent
receivables relate to sterling amounts due 
12 cash and cash equivalents 
2007 2006
note £m £m 
cash at bank 375 289 
shortterm deposits 28 66 
cash and cash equivalents per balance sheet 403 355
overdrafts 15 1 32 1 47 
cash and cash equivalents per cash flow statement 271 208 
 shortterm deposits had a maturity of three months or less on acquisition 
13 trade and other payables
2007 2006
£m £m 
current
t rade payables 525 445 
value added taxes payroll taxes and social security 37 51 
other payables and accruals 612 620 
1 174 1 116 
noncurrent
other payables 08 22 
 other payables includes £nil 2006 £nil of accrued government grant income sales agent termination benefits of £13 million in 2006 have been reclassed to provisions see note 16 
current trade and other payables include amounts due to be settled in sterling  euros us dollars thai baht malaysian ringgit chinese renminbi and 
other currencies noncurrent payables relate to sterling amounts due  14 current tax payable
the current tax payable of £56 million 2006 £35 million represents the amount of income taxes payable in respect of current and prior periods 
15 financial liabilities
2007 2006
£m £m 
current liabilities
overdrafts 1 32 1 47 
bank loans 373 279 
loan notes 31 33 
obligations under finance leases 02 07 
forward contract derivatives 03 03 
interest rate and currency swaps 13 04 
554 473 
noncurrent liabilities 
bank loans 02 02 
loan notes 641 746 
obligations under finance leases 01 02 
interest rate and currency swaps 95 50 
739 800 
t otal financial liabilities 1 293 1 273 
the financial instruments disclosures in note 22 detail the fair value hedge relationships between the group’s fixed rate loans and interest rate swaps 
loan notes interest rate and currency swaps held as a fair value hedge
the following table shows the carrying values of loan notes interest rate and currency swaps forming part of a fair value hedge relationship under ifrs
2007 2006
£m £m 
loan notes us 802 per cent guaranteed 81 1 19
currency swap us 802 per cent loan notes to euro 609 per cent fixed rate borrowing 18 15
interest rate swap euro 609 per cent fixed rate to euro variable rate borrowing 02 01 
97 1 33 
the loan notes interest rate and currency swaps held as a fair value hedge are carried at fair value under ifrs 
the notional amount of the us 802 per cent guaranteed loan notes is us152 million 2006 us203 million the us 802 per cent loan notes were
issued in november 1999 and are repayable in six further equal instalments maturing in november 2009 the loan notes are not secured on any assets 
of the group
the notional amount and payment terms of loan notes and swaps are equal the hedge effectiveness tested semiannually was 997 per cent effective
throughout the year in providing a hedge against fair value adjustments relating to interest rate changes the fair value charge in the year arising from
movements in interest rates was £nil 2006 £nil notes to the consolidated financial statements
continued
68
—
69
notes to the consolidated financial statements
other loan notes interest rate and currency swaps
2007 2006
£m £m 
loan notes sterling 7 87 per cent guaranteed 59 59 
loan notes us 819 per cent guaranteed 532 601 
currency swap us 819 per cent loan notes to sterling 7 69 per cent fixed rate borrowing 92 40 
683 700 
the sterling 7 87 per cent and us 819 per cent guaranteed loan notes are held at amortised cost retranslated at spot under ifrs the currency swap is
carried at fair value under ifrs 
the notional amount of the sterling 7 87 per cent loan notes is £59 million 2006 £59 million the notional amount of the us 819 per cent loan notes is
us1042 million 2006 us1042 million the sterling loan notes were issued in november 1999 and are repayable in full in november 2014 the us loan
notes were issued in november 1999 and are repayable in full in november 2009 the loan notes are not secured on any assets of the group
the fair value of the 7 87 per cent guaranteed loan notes held at amortised cost is £62 million 2006 £62 million the fair value of the 819 per cent also
held at amortised cost is £561 million 2006 £597 million 
the notional amount and payment terms of loan notes and swaps are equal the loans and swaps do not constitute a fair value hedge under ifrs
consequently the group is exposed to fair value changes from interest rate movements in the us and sterling these fair value changes have resulted 
in a credit of £18 million in the income statement for the year the group’s exposure to fair value changes is considered further in note 22 
other financial liabilities 
finance lease creditors are secured on the assets to which they relate 
loan maturities
2007 2006
£m £m 
bank loans and overdraft 
bank loans or instalments thereof are repayable 
from 1—2 years 02 02 
t otal due after more than one year 02 02
t otal due within one year 505 426
507 428
loan notes 
loan note or instalments thereof are repayable 
after 5 years from the balance sheet date 59 59 
from 3—4 years — 626
from 2—3 years 555 28 
from 1—2 years 27 33 
t otal due after more than one year 641 746
t otal due within one year 31 33 
672 779
15 financial liabilities continued 2007 2006
£m £m
obligations under finance lease see also note 23 
obligations under finance lease or instalments thereof are repayable
from 1—2 years 01 02
t otal due after more than one year 01 02 
t otal due within one year 02 07
03 09
forward contract derivatives 
forward contract derivatives are repayable
t otal due within one year 03 03
03 03
interest rate and currency swaps 
interest rate and currency swaps or instalments thereof are repayable
from 3—4 years — 39
from 2—3 years 84 06
from 1—2 years 11 05
t otal due after more than one year 95 50
t otal due within one year 13 04
1 08 54
t otal financial liabilities
loans or instalments thereof are repayable 
after 5 years from the balance sheet date 59 59
from 3—4 years — 665 
from 2—3 years 639 34 
from 1—2 years 41 42 
t otal due after more than one year 739 800
t otal due within one year 554 473
t otal financial liabilities 1 293 1 273
the aggregate amount of loans any instalment of which falls due after five years is £59 million 2006 £59 million  notes to the consolidated financial statements
continued
70
—
71
notes to the consolidated financial statements
16 provisions for liabilities and charges
overseas group and
termination manufacturing commercial
benefits disposals restructuring restructuring other total
£m £m £m £m £m £m
at 31 march 2005 32 158 108 42 72 412 
provisions made during the year 05 —  — 28 — 33 
provisions used during the year 08 82 23 46 24 1 83 
exchange and other movements 03 — — — — 03 
at 31 march 2006 26 76 85 24 48 259 
t ransferred from noncurrent payables 13 — — — — 13 
provisions made during the year 04 — — — — 04
provisions used during the year 03 61 47 20 12 1 43
provisions transferred during the year — — 34 — 34 — 
exchange and other movements 01 01 — 02 
at 31 march 2007 39 15 04 03 70 131 
current — 15 04 03 08 30 
noncurrent 39 — — — 62 101 
39 15 04 03 70 131 
 amounts payable to third party sales agents upon termination of their contracts have been reclassified from noncurrent payables to provisions to better reflect the nature of the liability
overseas termination benefits 
included with overseas termination benefits is an amount of £28 million 2006 £26 million for termination benefits payable to employees in a number of
overseas subsidiaries benefits accrue with service and are payable to employees upon departure from the group regardless of the reason for such departure
benefits may be calculated with reference to an average salary over the service life of the employee or the final salary of the employee differences arising
due to changes in assumptions in calculating the liability for employees are taken through reserves and are included above within exchange and other
movements the main assumptions underlying the calculation on a weighted average basis across the various schemes are salary increases of 20 per
cent an inflation rate of 20 per cent and a discount rate of 30 per cent the calculation of the provision is determined by contractual obligation and
therefore can be estimated reliably no terminations are expected in the next year
provision is also made for termination payments which may be required for sales agents at the year end an amount of £11 million was provided in the 
prior year an amount of £13 million was included with payables due after more than one year the amount provided is based upon payments which would 
be required under collective agreements to sales agents upon termination of their contracts by the group increases and decreases in the provision aside 
from utilisation are reflected within the income statement
disposals 
following the group’s disposal of the medical business in 2004 and 2005 a number of disposal provisions were created for the ongoing commitments of
the group in respect of the disposals the group has continued to utilise these provisions during the current year it is expected that all remaining provisions
will be utilised during the next year 
manufacturing restructuring 
during 2005 the group announced its decision to close the derby manufacturing plant and transfer production to india this process remains ongoing and
the amounts provided reflect the future expected costs of completing this transfer £34 million which relates to a provision for a noncancellable lease for
the derby site has been reclassified into ‘other’ during the year it is expected that all other remaining provisions will be utilised during the next financial year 
group and commercial restructuring 
the group has continued in the current year with its rationalisation and restructuring of commercial operations provisions brought forward in respect of
employee costs have been utilised in the year the remaining provision relates to additional costs not yet incurred it is expected that the provisions will be
utilised during the next financial year  other 
other provisions relate to a number of premerger environmental provisions of £07 million surplus property provisions of £62 million and any other
obligations following previous acquisitions of £01 million environmental provisions are provided for to the extent that a present obligation exists it is
probable such costs will be incurred and they can be estimated reliably no provision is made for possible additional costs that are not currently probable 
the surplus property provision relates to group commitments under noncancellable leases for sites which following historical restructuring exercises 
are no longer used by the group the obligation net of expected rental income has been provided for during the year £34 million has been transferred 
from the manufacturing restructuring provision in relation to surplus property costs arising from the noncancellable lease for the derby site
surplus property costs of £56 million and environmental provisions of £06 million have been included as noncurrent it is expected that all other 
provisions will be utilised during the next financial year 
17  postretirement benefits
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
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 £14 million 2006  £14 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 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 latest valuation of the scheme was at 5 april 2006 the group expects to make
contributions of £05 million into the scheme during the next financial year
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 recent valuation by independent actuaries was at 5 april 2006 the group expects to make contributions of 
£06 million into the scheme during the next financial year
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 31 march 2006 the group expects to make contributions of £82 million
into the scheme during the next financial year
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
the total pension cost for the group in respect of overseas defined contribution schemes was £19 million 2006 £13 million
details of the material overseas defined benefit schemes are given opposite
the most recent valuation for each scheme as at the dates disclosed above were updated for ias 19 purposes to 31 march 2007 by independent 
qualified actuaries notes to the consolidated financial statements
continued
72
—
73
notes to the consolidated financial statements
the principal assumptions used by the actuaries in determining the present value of the liabilities were
2007
seton scholl lig overseas
rate of increase in salaries 400 400 400 400
pensions increases per annum 300 — — 300
—pensions accrued to 6 april 1997 closed section — 300 — —
open section — 225 — —
—pensions accrued from 6 april 1997 closed section — 325 — —
open section — 300 — —
—pre april 1997 — — 210 —
—post april 1997 — — 300 —
discount rate applied to scheme liabilities 540 540 540 475
inflation assumption 300 300 300 300
2006 
seton scholl lig overseas
rate of increase in salaries 400 400 400 400
pensions increases per annum 300 — — 300
—pensions accrued to 6 april 1997 closed section — 300 — —
open section — 225 — —
—pensions accrued from 6 april 1997 closed section — 325 — —
open section — 300 — —
—pre april 1997 — — 210 —
—post april 1997 — 300 —
discount rate applied to scheme liabilities 500 500 500 500
inflation assumption 300 300 300 300
2005 
seton scholl lig overseas
rate of increase in salaries 400 400 400 400
pensions increases per annum 275 — — 275
—pensions accrued to 6 april 1997 closed section — 300 — —
open section — 206 — —
—pensions accrued from 6 april 1997 closed section — 325 — —
open section — 275 — —
—pre april 1997 — — 190 —
—post april 1997 — — 275 —
discount rate applied to scheme liabilities 550 550 550 550
inflation assumption 275 275 275 275
the mortality assumption in the current year has been updated to reflect the experience analysis conducted as part of the most recent uk scheme valuations
the change in the mortality assumption represents a decrease in the assumed life expectancy for a 65yearold male from 219 years as used in 2006 and
2005 to 212 years
the rate of return on government and corporate bonds is the yield rate at each year end date for long dated bonds the rate for cash is the same as that for
government bonds the equity rate of return is derived by adding a risk adjustment factor to the government bond rate the rate for insurance contracts
reflects the yield rate at the balance sheet date
17  postretirement benefits continued the assets in the schemes and the expected rate of return as at 31 march 2007   2006 and 2005 were
2007
longterm
rate of return seton scholl lig overseas  total
for forthcoming year £m £m £m £m £m
equities 780 81 161 628 04 874 
corporate bonds 500 15 10 1 12 02 1 39 
insurance contracts 475 — — — 68 68
government bonds 450 59 80 431 — 570
cash and other 450 — 10 12 — 22
t otal market value 155 261 1183 74 1673
present value of scheme liabilities 184 262 1810 111 2367
deficit in the scheme 29 01 627 37 694
2006
longterm
rate of return seton scholl lig overseas  total
for forthcoming year £m £m £m £m £m
equities 740 78 155 598 08 839 
corporate bonds 460 15 09 111 02 137
insurance contracts 475 — — — 58 58 
government bonds 420 60 79 434 — 573
cash and other 420 01 11 01 — 13 
t otal market value 154 254 1144 68 1620
present value of scheme liabilities 197 295 1948 95 2535
deficit in the scheme 43 41 804 27 915
2005
longterm
rate of return seton scholl lig overseas  total
for forthcoming year £m £m £m £m £m
equities 725 87 145 497 08 737
corporate bonds 550 26 — 67 02 95 
insurance contracts 475 — — — 52 52 
government bonds 475 27 57 365 — 449
cash and other 475 01 10 29 — 40 
property 620 — 06 — — 06
t otal market value 141 218 958 62 1379 
present value of scheme liabilities 177 258 1678 90 2203
deficit in the scheme 36 40 720 28 824
 assets had been netted off liabilities for a number of overseas schemes in prior years the figures for 2005 and 2006 have been restated to show the figures gross
of the closing deficit in 2007  £22 million is in relation to unfunded schemes 2006 £24 million the remaining deficit is all in relation to funded schemes
movement in postretirement scheme obligations
2007 2006
seton scholl lig overseas seton scholl lig overseas 
£m £m £m £m £m £m £m £m
present value of obligation at 
beginning of year 197 295 1948 95 177 258 1678 90
current service cost — — — 01 ————
benefits paid 08 12 78 04 15 09 63 02
other finance incomeexpense 10 14 95 05 09 13 91 01 
actuarial gainloss 15 35 155 17 26 33 242 05 
foreign exchange — — — 03 — — — 01
present value of obligation at end of year 1 84 262 1 810 1 11 1 97 295 1 948 95
current service costs are recognised within the income statement notes to the consolidated financial statements
continued
74
—
75
notes to the consolidated financial statements
movement in scheme assets
2007 2006
seton scholl lig overseas seton scholl lig overseas 
£m £m £m £m £m £m £m £m
at beginning of year 154 254 1144 68 141 218 958 62 
contributions paid by the employer 02 05 66 03 02 05 66 02
expected return on scheme assets 09 15 67 03 08 13 59 —
benefits paid 08 12 78 02 15 09 63 02 
actuarial lossgain 02 01 16 05 18 27 124 06
foreign exchange — — — 03 ————
at end of year 155 261 1183 74 154 254 1144 68 
analysis of amounts included in other finance incomecosts
2007 2006
seton scholl lig overseas seton scholl lig overseas 
£m £m £m £m £m £m £m £m
expected return on pension scheme assets09 15 67 03 08 13 59 —
interest on pension scheme liabilities 10 14 95 05 09 13 91 01
01 01 28 02 01 — 32 01
analysis of amount recognised in the statement of recognised income and expense
2007 2006
seton scholl lig overseas seton scholl lig overseas 
£m £m £m £m £m £m £m £m
actual return less expected return 
on scheme assets 02 01 16 05 18 27 124 06
experience gainloss arising on 
scheme liabilities 03 02 11 — ————
changes in assumptions underlying the 
present value of scheme liabilities 18 37 144 17 26 33 242 05
actuarial gainloss recognised in the sorie13 34 139 12 08 06 118 01 
t otal actuarial gains recognised in the sorie in the current year are £17 4 million 2006 loss of £131 million
history of experience gains and losses
2007
seton scholl lig overseas
£m £m £m £m
difference between expected return and actual return on scheme assets
—amount £m 02 01 16 05 
—percentage of year end scheme assets 1 0 1 7
experience gains and losses on scheme liabilities
—amount £m 18 37 155 17
—percentage of year end scheme present value of scheme liabilities 1 0 1 4 9 1 5
history of experience gains and losses
2006
seton scholl lig overseas
£m £m £m £m
difference between expected return and actual return on scheme assets
—amount £m 18 27 124 —
—percentage of year end scheme assets 12 1 1 11 0
experience gains and losses on scheme liabilities
—amount £m 26 33 242 05
—percentage of year end scheme present value of scheme liabilities 13 1 1 12 5
17  postretirement benefits continued history of experience gains and losses
2005
seton scholl lig overseas
£m £m £m £m
difference between expected return and actual return on scheme assets
—amount £m 06 10 19 01
—percentage of year end scheme assets 4 5 2 2
experience gains and losses on scheme liabilities
—amount £m 17 17 158 10
—percentage of year end scheme present value of scheme liabilities 1079 11
18 employee costs and share option plans for employees
employee costs
the average number of people employed by the group is set out in the table below in accordance with companies act 1985 this includes parttime employees
2007 2006
employees
average number of people employed by the group in
—united kingdom 1963 2057 
—americas 48 48 
—asia pacific and rest of the world 3087 2675 
5098 4780 
the total number of people employed by the group at the end of the year was 5286 2006 4626
the costs incurred during the year in respect of the continuing business employees were
2007 2006
£m £m
wages and salaries 753 716 
social security costs 1 07 1 04 
other pension and health insurance costs 52 39 
912 859
severance costs of £10 million 2006 £28 million are not included in the above
full details of directors’ remuneration shares and options are set out in the directors’ remuneration report on pages 39 to 45
the directors believe that together with the basic salary system the group’s employee incentive schemes provide competitive marketrelated packages 
to motivate employees they should also align the interests of employees with those of shareholders as a whole through longterm share ownership of 
the company 
group annual bonus scheme
this scheme is a performance bonus scheme for directors and senior employees both within the uk and overseas  annual bonuses are paid in cash and
reflect both corporate and individual performance measures maximum bonuses are paid upon achievement of 115 per cent of the target for directors and
105 per cent of the target for senior employees this reduces on a straight line to 50 per cent of the maximum for the achievement of the target for senior
employees the bonus further reduces in a straight line to 10 per cent of the maximum for reaching 95 per cent of the target no bonus is payable for
reaching less than 95 per cent of the target
local bonus schemes
individual countries run local bonus schemes for senior employees who fall outside the group annual bonus scheme performance targets are set locally
and payment of bonuses is at the discretion of local management
executive share option plans
the group has a number of executive share option schemes
london international group 1991 scheme
this scheme was open to senior executives of london international group prior to the merger with seton scholl healthcare plc in 1999 no further grants
may be made under this scheme all outstanding options have performance targets attached to them which have been met the outstanding options will
expire on 3 december 2007  76
—
77
notes to the consolidated financial statements
ssl 1990 share option scheme
this was a senior executive scheme approved in june 1990 for a period of 10 years as the scheme has now expired no further grants may be made through
it all outstanding options in the scheme will expire in june 2010 exercise of any grants made since june 1999 is subject to performance targets being met 
ssl 1996 share option scheme
this is a senior executive scheme approved in july 1996 for a period of 10 years no further grants were made after july 2006 prior to march 2005 grants
were made under this scheme annually following announcement of final results  since the development of the new performance share plan as detailed
below no grants have been made during the current year exercise of all grants is subject to performance targets being met 
long t erm incentive plan
this is a scheme approved in july 1999 for senior executives no further awards may be made under the plan after awards in respect of the year financial
year commencing in 2009 awards may be made of deferred shares funded by the sacrifice of up to 50 per cent of the executive’s annual bonus these
deferred shares are matched by performance shares the transfer of which is conditional upon certain performance targets being met dividends are
payable to the executives on the deferred shares awards were made under this scheme in july 2000 2001 and 2002 no subsequent awards have been
made the performance targets were not met for the 2000 and 2001 awards  but were met for the 2002 award
ssl international stock purchase plan
this is a scheme operating within the us business which was approved by the board in august 2001 no further offering may be made after august 2011 the
scheme was launched in the us in september 2001 employees may choose to save each month during a one year offering period at the end of the offering
period employees may purchase shares at a discount of 15 per cent on the lower of the first day or last day market price  no offers have been made since
january 2005
ssl sharesave scheme
this is an hm revenue  customs approved savingsrelated scheme approved by shareholders at the company’s agm in july 1996 no further grants may
be made under the scheme after july 2006 the last grants made under the scheme were in january 2005 
eligibility
uk resident employees are automatically eligible to participate in the scheme
grant of options
grants were made under this scheme following announcement of the group’s interim results 
options were only granted to employees who entered into hm revenue  customs approved savings contracts with the savings body nominated by 
the company savings of a fixed amount not less than £5 nor more than £250 are made over a period of three or five years the number of ordinary shares
over which an option was granted was such that the total amount payable on its exercise will be the proceeds on maturity of the related savings contract 
no payment was required for the grant of an option options are not transferable employees may choose to withdraw from the scheme at which point they
will receive their cash savings plus interest 
acquisition price
the price per ordinary share payable upon the exercise of an option was 80 per cent of the average of the middle market quotations for an ordinary
share on the london stock exchange on the dealing date prior to the date on which invitations to apply for options were issued
exercise of options
an option will normally be exercisable for six months commencing on the third or fifth anniversary of the start of the related savings contract options may
be satisfied by the issue of new shares or through the seton healthcare group qualifying employee share ownership t rust either by newly issued shares or
market purchases by the t rust 
options will normally lapse upon cessation of employment 
ssl international plc global share savings plan
this scheme was approved at the company’s agm in july 2001 and launched in september 2001 no grants may be made under the plan after july 2011
eligibility
the scheme has been launched to date in australia austria canada denmark france germany greece hong kong hungary indonesia ireland italy
japan malaysia netherlands new zealand norway poland portugal singapore spain sweden switzerland t aiwan thailand and t urkey
grant of options
the scheme operates in a similar way to the ssl uk sharesave scheme however savings are made with local banks in local currencies
acquisition price
the price per ordinary share payable upon the exercise of an option will be 80 per cent of the average of the middle market quotations for an ordinary share
on the london stock exchange on the dealing date prior to the date on which invitations to apply for options are issued
18 employee costs and share option plans for employees continued
notes to the consolidated financial statements
continued exercise of options
an option will normally be exercisable for six months commencing on the third anniversary of the start of the related savings contract options are satisfied
by the issue of new shares
deferred share bonus plan
this plan was in operation for the prior year only and was intended to provide a focused incentive upon achievement of shortterm financial objectives
under the scheme executives were awarded capped at 100 per cent of salary for the chief executive and 75 per cent of salary for executive directors 
a bonus upon achievement of eps targets 
the bonus earned was converted into an equivalent notional number of shares at a price  of 32175 pence and deferred until 30 march 2007  payment was
subject to the employee remaining in service at that point in time the amount paid in cash in april 2007 was the value of the notional number of shares
awarded multiplied by the average share price during march 2007 which was 38211 pence details of the amounts awarded to the chief executive and
executive directors are included within the remuneration report
performance share plan
this plan approved at the company’s agm in july 2005 is intended to be the company’s only active longterm incentive plan eligibility is restricted to the
chief executive and senior executives currently the top 35 employees annual grants do not exceed 100 per cent of base salary shares are awarded and
will vest after three years subject to performance conditions being met 
executive share option plans and share savings plans
the executive share option plans include executive options that have a tsr performance condition attached these options have been valued using the
monte carlo simulation model all other options have been valued using the black scholes formula
global share savings plan 
executive share option plans and uk sharesave scheme 
options waep options waep 
000 pence 000 pence 
at 1 april 2005
options outstanding 3241 407 1741 232
movements during 2006 
options exercised 20 250 379 208 
options lapsed 260 537 237 287 
at 31 march 2006 
options outstanding 2961 407 1125 232
movements during 2007
options exercised 295 290 335 208
options lapsed 663 554 117 262 
at 31 march 2007
options outstanding 2003 361 673 233
range of exercise prices 250p to 784p 208p to 444p 
weighted average remaining contractual life days 1800 566
options exercisable 1676 373 — —
 weighted average exercise price
the weighted average share price at the date of exercise for share options exercised during the year was 332 pence 2006 314 pence
the charge for sharebased payments in respect of share options is £0 4 million 2006 £06 million which is comprised entirely of equitysettled transactions
long t erm incentive plan
at the start of the year nil performance shares were still to be awarded subject to performance criteria being met 
shares wafv 
performance share plan 000 pence 
shares awarded in august 2005 1044 291
at 31 march 2006 1044 291
shares awarded in august 2006 1095 282
share award lapses — —
as at 31 march 2007 2139 286 
the fair value is based upon the share price at the date of grant of the notional share award the charge for the performance share plan during the current 
year is £19 million 2006 £10 million the charge in the current year reflects the fact that 167 013 shares awarded to a former director across the two years 
will not vest see remuneration report 78
—
79
notes to the consolidated financial statements
19 reserves
other reserves
share equity
share premium merger t ranslation retained holders of minority total
capital account reserve reserve earnings the parent interests equity
note £m£m£m£m£m £m £m £m
at 1 april 2005 190 407 1368 01 1397 569 84 653 
t otal recognised income and expense — — — 44 151 195 18 213
shares issued in the period — 08 — — — 08 — 08 
equity dividends 20 — — — — 118 1 18 — 1 18
exchange adjustments — — — — — — 06 06 
sharebased payments — — — — 16 16 — 16
dividends paid to 
minority interests — — — — — — 23 23 
at 31 march 2006 190 415 1368 45 1348 670 85 755 
at 1 april 2006 190 415 1368 45 1348 670 85 755 
t otal recognised income and expense — — — 55 440 385 13 398 
shares issued in the period — 17 — — 03 14 — 14 
own shares held issued for 
cash consideration ———— 02 02 02
equity dividends 20 — — — — 124 1 24 — 1 24
exchange adjustments — — — — — — 08 08
sharebased payments — — — — 23 23 — 23
t axation taken to reserves in 
respect of sharebased payments — — — — 06 06 — 06
dividends paid to 
minority interests — — — — — — 02 02 
at 31 march 2007 190 432 1368 10 1004 976 88 1064
t ranslation reserve
the translation reserve comprises all foreign exchange differences arising from the translation of foreign operations as well as from the translation of
liabilities that hedge the group’s net investment in foreign subsidiaries foreign exchange gains of £05 million on foreign currency borrowings were offset 
by losses of £05 million arising from retranslation of foreign assets designated as the hedging instrument the net investment hedge was 100 per cent
effective in the year
equity holders of the parent
included as a reduction in equity is £nil 2006 £04 million in respect of own shares held by the group  the group has an investment in own shares which
represents nil shares 2006 82858 acquired by the seton healthcare group qualifying employee share ownership t rust ‘quest’ and seton healthcare
group employee ownership plan ‘esop’ the shares were purchased on the open market and are held for employees participating in various share
schemes the shares held at the start of the year were issued to employees for cash consideration of £02 million following option exercises under the
sharesave and executive option schemes during the year further shares were issued into the trusts and issued to employees to satisfy option exercises
under the sharesave and executive option schemes this resulted in a reduction in retained earnings of £03 million
called up £0 10 ordinary share capital of the parent company
allotted allotted 
calledup and calledup and
authorised fully paid authorised fully paid
number number £m £m 
at 1 april 2005 250000000 189514644 250 190
employee share options schemes—options exercised — 403589 — —
at 31 march 2006 250000000 189918233 250 190 
employee share options schemes—options exercised — 546691 — — 
at 31 march 2007 250000000190464924 250 190
notes to the consolidated financial statements
continued 20 dividends
2007 2006 2007 2006
pence per £0 10 ordinary share £m £m
2006 final paid 7 september 2006 2005 final paid 8 september 2005 44 42 84 80
2007 interim paid 1 march 2007 2006 interim paid 1 march 2006 21 20 40 38
amounts recognised as distributions to equity holders in the year 65 62 1 24 1 18
the proposed final dividend for 2007 is 47 pence per ordinary share and £89 million in total 
the proposed 2007 final dividend will be submitted to the shareholders for confirmation at the annual general meeting and has not been recognised as 
a distribution to equity holder in these financial statements this will be payable subject to approval on 6 september 2007 to shareholders on the register 
on 10 august 2007 
21 analysis of net debt
financial liabilities
bank loans and loan notes interest rate swap derivatives t otal cash and cash
due after due within due after due within finance financial equivalents per
one year one year one year one year leases overdrafts liabilities balance sheet net debt
£m £m £m £m £m £m £m £m £m
at 1 april 2005 879 338 — — 17 56 1290 408 882 
t ransition adjustments on
adoption of ias 32 and ias 39110 01 92 08 — — 11 — 11 
cash flow 51 55 03 04 09 87 35 65 30 
other noncash changes 29 29 03 03 01 — 01 — 01 
exchange adjustments 62 01 61 03 — 04 03 12 09 
fair value changes arising from 
interest rates movements 03 — 25 — — — 22 — 22 
at 31 march 2006 748 312 50 04 09 147 1270 355 915 
cash flow — 73 — 06 07 10 50 67 17 
other noncash changes 27 27 13 13 01 — 01 — 01 
exchange adjustments 80 08 78 02 — 05 13 19 06 
fair value changes arising from 
interest rates movements 02 — 20 — — — 18 — 18 
at 31 march 2007 643 404 95 13 03 132 1290 403 887
22 financial instruments
exposure to credit interest rate and currency risks arise in the normal course of the group’s business derivative financial instruments are used to hedge
exposure to fluctuations in foreign exchange rates interest rates the group’s policies with regard to derivatives and financial instruments are set out in 
the financial review on pages 28 to 31 the group does not trade in financial instruments 
a interest rate risk profile of financial assets and liabilities 
financial assets
2007 2006
at floating at fixed at floating at fixed
interest interest interest interest
rates rates t otal rates rates t otal
£m £m £m £m £m £m
cash and cash equivalents
sterling 147 — 147 68 23 91
us dollar 20 — 20 21 — 21
euro 53 15 68 47 14 61
other 155 13 168 153 29 182
total 375 28 403 289 66 355
cash and cash equivalents at floating interest rates comprise cash at bank these are held at call and accrue interest at effective interest rates of less than
235 per cent cash and cash equivalents at fixed interest rates comprise shortterm bank deposits these are placed on terms not exceeding three months
the deposits accrue effective rates of interest of between 05 per cent and 103 per cent  80
—
81
notes to the consolidated financial statements
financial liabilities 
interest rate risk 
the group’s fixed rate financial derivatives and fixed rate borrowings are exposed to a risk of change in their fair value due to changes in interest rates 
the group’s variable rate financial derivatives and variable rate borrowings are exposed to a risk of change in cash flows due to changes in interest rates
hedging 
interest rate and currency swaps denominated in us dollars euros and sterling have been executed to hedge the group’s exposure to risks in accordance
with its interest rate policy these swaps are matched in maturity to the underlying debt at 31 march 2007  the group had interest rate and currency swaps
with a notional amount of £119 million 2006 £45 million 
interest rate swaps including those in effective fair value hedging relationships are measured at fair value under ias 39 
the fair value of interest and currency swaps recognised as hedges at 31 march 2007 is a net liability of £16 million comprising assets of £17 8 million and
liabilities of £194 million 2006 net liability of £14 million comprising assets of £251 million and liabilities of £265 million
from 1 april 2005 interest rate swaps designated as fair value hedges are fair valued through the income statement as part of net finance expense
underlying loans that form part of fair value hedge relationships are adjusted for fair value attributable to hedged risk through income statement to offset
any marktomarket arising on the interest rate swaps hedge documentation is prepared for all fair value hedges at inception and effectiveness is carried
out semiannually all designated hedges have remained effective throughout the current financial year
the maturity dates of all financial liabilities together with details of their fair values and carrying values are disclosed in note 15
effects of interest rate and currency swaps
the following reflects the effects of financial derivatives on the group’s borrowings at 31 march 2007  
before after
financial financial
derivatives derivatives
£m £m
sterling 421 1069 
us dollar 609 25
euro 143 239
japanese yen 05 05
other currencies 02 02
1180 1290
floating rate borrowings 507 604
fixed rate borrowings 673 686
1180 1290
the analysis above does not include the markingtomarket liabilities arising on forward contract derivatives 
notes to the consolidated financial statements
continued
22 financial instruments continued the following tables show the profile of the group’s fixed and floating rate borrowings after the effect of swaps for both the current and preceding periods 
2007
at floating at fixed 
interest interest
rates rates t otal
£m £m £m 
interest bearing loans and overdrafts
sterling 360 709 1069
us dollar — 25 25
euro 239 — 239
other 05 02 07 
t otal 604 686 1290
2006
at floating at fixed 
interest interest
rates rates t otal
£m £m £m
interest bearing loans and overdrafts
sterling 257 708 965
us dollar — — —
euro 291 — 291 
other 13 01 14 
t otal 561 709 1270
interest rates of the group’s borrowings 
floating rate financial liabilities in material currencies are based upon libor 
the following table shows the notional and effective rates of interest of the group’s fixed rate borrowings at 2007 after the effect of swaps
t otal 2007
fixed rate effective notional
borrowing interest interest
£m rates rates 
sterling guaranteed loans notes 59 802 787
currency swap us loan notes to sterling fixed rate borrowing 624 783 769
obligations under finance leases 03 770 770
t otalweighted average rate 686 785 771
the following table shows the average effective rates of interest of the group’s variable rate borrowings at 2007 after the effect of swaps 
2007
t otal average
variable effective
borrowing interest
£m rates 
sterling bank loans and overdrafts 360 553
currency swap euro fixed rate receivable to euro floating rate payable 96 512
euro bank loans and overdrafts 143 439
japanese yen bank loans and overdrafts 05 263
t otalweighted average rate 604 517 notes to the consolidated financial statements
continued
82
—
83
notes to the consolidated financial statements
b foreign currency risk 
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 financial assetsliabilities in £m
sterling us dollar euro other t otal 
at 31 march 2007 
functional currency of group operations 
sterling — — 01 — 01
other 07 — 07 — 14
t otal 07 — 08 — 15 
at 31 march 2006 
functional currency of group operations 
sterling — 03 08 05 16 
other 06 — 03 — 09 
t otal 06 03 11 05 25
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 
hedge of net investment in foreign operation 
the group’s euro denominated currency swap is designated as a hedge of the group investments in european operations denominated in euros the fair
value of the swap at 31 march 2007 was £96 million 2006 £132 million a gain of £04 million was recognised in the foreign currency reserve within equity
on the translation of the swap to sterling 2006 a loss of £01 million
d estimation of fair values 
the following summarises the major methods and assumptions used applied consistently in estimating the fair value of financial instruments reflected 
in the tables in section a
derivatives 
the fair value of all derivatives are estimated from discounted anticipated cash flows utilising a riskadjusted zero coupon yield curve valuation technique
based on rates prevailing at the year end in the relevant currencies
interest bearing loans and borrowings 
the fair value of all loans are estimated from discounted anticipated cash flows utilising a riskadjusted zero coupon yield curve valuation technique 
based on rates prevailing at the year end in the relevant currencies a credit spread is added to yield curves to obtain an accurate basis for fair value
t rade and other receivablespayables
for all other receivables and payables categorised as financial assets or liabilities under ias 39 but not presented within financial assets or liabilities in 
these financial statements the notional amount is deemed to reflect the fair value 
e credit risk 
surplus funds are invested in high quality liquid marketable investments investments are of a plain vanilla nature with no embedded derivatives
the group’s exposure to credit risk is controlled by setting a policy for limiting credit exposure to counterparties which is reviewed annually and reviewing
credit ratings and limiting individual aggregate credit exposures accordingly the group considers the possibility of material loss in the event of non
performance by a financial counterparty to be unlikely
at the balance sheet date there were no significant concentrations of credit risk the maximum exposure to credit risk is represented by the carrying value
of each financial asset including derivative financial instruments in the balance sheet
the notional amounts of financial instruments used in debt and currency management do not represent amounts exchanged by the parties and thus 
are not a measure of the credit risk to the group arising through use of these instruments the immediate credit exposure of financial instruments is
represented by those financial instruments with a positive carrying value at the balance sheet date 
the group deposits central funds when available with highly rated banks in line with group policy the central funds on deposit at the balance sheet 
date were £95 million 2006 £66 million
22 financial instruments continued f borrowing facilities
committed undrawn facilities available to the group in respect of which all conditions precedent had been met at that date were as follows
2007 2006
£m £m 
expiring in one year or less 700 255
expiring in more than two years 1461 —
t otal 2161 255
23 leases
2007 2006
£m £m 
t otal commitments to pay rentals under operating leases
minimum lease payments made during the year
—land and buildings 42 48 
—plant equipment and motor vehicles 15 29 
57 77 
utilisation of restructuring provision — 25
lease payments charged to income statement 57 52 
the future minimum lease commitments under leases are as follows 
operating leases finance leases 
2007 2006 2007 2006
£m £m £m £m 
rentals due within 1 year 22 66 02 07
from 1—2 years 21 50 01 03 
from 2—3 years 29 43 — —
from 3— 4 years 12 34 — —
from 4—5 years 09 33 — —
after 5 years from balance sheet date 08 96 — —
1 01 322 03 10
less amounts representing interest — 01
present value of net minimum lease payments 03 09
less current lease obligations 02 07
noncurrent lease obligations 01 02 notes to the consolidated financial statements
continued
84
—
85
notes to the consolidated financial statements
principal group undertakings
24 statutory and other information
related party transactions 
ssl ttk and ttklig minority interest 
in accordance with ias 24 ‘related party disclosures’ are reported only with parties outside the consolidated group
during the year the group has transacted with the minority interest holding group of ssl ttk and ttklig limited specific transactions which are
considered material are as follows
the group has made sales of £185 million to the minority group 
the group has paid packing charges of £05 million and logo charges of £04 million to the minority group
at the year end the group was owed £33 million from the minority interest holding group of ssl ttk and ttklig limited
qingdao london durex company limited
prior to the acquisition of the remaining 50 per cent of qingdao london durex company limited the group received royalties from the company of 
£09 million dividends of £20 million are also due to the group in relation to profits earned by the company prior to the group acquiring the remaining 
50 per cent of the company
key management personnel compensation
details of key management compensation as required by ias 24 ‘related party disclosures’ is disclosed in the remuneration report on pages 39 to 45
subsequent events
proposed dividends are disclosed in note 20
on 21 march 2007  it was announced that the standard rate of corporation tax was to be changed to 28 per cent and capital allowance legislation impacting
on the calculation of the deferred tax provision of the company will be introduced for taxable periods arising on or after 1 april 2008 for the purpose of 
the company accounts to 31 march 2007  the standard rate of corporation tax and capital allowance legislation applicable prior to 30 march 2008 has been
applied on the basis that these were enacted at 31 march 2007  the net effect of this would be a reduction in the deferred tax asset of approximately 
£08 million
there are no other events after the balance sheet date disclosable under ias 10 ‘events after the balance sheet date’ 
25 commitments and contingent liabilities
2007 2006
£m £m 
commitments for capital expenditure not provided for in these accounts 
contracts placed for future expenditure 11 —
contingent liabilities 
environmental 
provision has been made in the group financial statements for the environmental clean up costs for certain us properties currently and formerly owned 
by the group based on the directors’ 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 is a defendant in a small number of lawsuits incidental to its operations which in the aggregate are not expected to have a material adverse
effect on the group principal group undertakings
trading subsidiary undertakings country of registration incorporation and operation
ssl australia pty limited australia
ssl healthcare österreich gmbh austria
nv ssl healthcare belgium sa belgium
ssl canada inc canada
ssl czeska republika sro czech republic
ssl healthcare danmark as denmark
ssl products limited england
london international group limited england
lrc products limited england
scholl limited england
scholl consumer products limited england
scholl investments limited england
scholl uk limited england
sonet scholl overseas investments limited england
sonet scholl uk limited england
sonet prebbles limited  england
sonet investments limited  england
t ubifoam limited england
ssl healthcare france sa france
ssl healthcare gmbh germany
ssl healthcare deutschland gmbh  co kg germany
london international gmbh germany
ssl hellas sa greece
simco limited guernsey
ssl healthcare hong kong limited hong kong
ssl magyarorszag kereskedelmi kft hungary
ssl ttk limited india
ttklig limited india
seton scholl ireland holdings limited ireland
seton scholl international ireland ireland
ssl healthcare ireland limited ireland
ssl healthcare italia spa italy
ssl healthcare japan limited japan
new bridge holdings bv netherlands
seton scholl european holdings bv netherlands
ssl healthcare nederland bv netherlands
lig china bv netherlands
ssl new zealand limited new zealand
ssl healthcare norgeas norway
london international norway as norway
qingdao london durex company limited people’s republic of china
ssl healthcare polska sp zoo poland
ssl romania srl romania
ssl healthcare singapore pte limited singapore
ssl slovensko spol sro slovakia
ssl healthcare brands sa spain
ssl sverige ab sweden
ssl healthcare schweiz sa switzerland
ssl manufacturing thailand limited thailand
ssl healthcare thailand limited thailand
lrc products ticaret ve pazarlama limited sirketi t urkey
lrc north america inc usa
ssl americas inc usa
ssl holdings inc usa
the group holds 100 per cent of the equity capital of the above companies with the exception of ssl ttk limited in which the group holds 51 per cent 
and ttklig limited holds the remaining 49 per cent the group holds 4987 per cent of ttklig limited
ttklig limited is consolidated as the group exerts a dominant influence over the company
in january 2007  the group completed the purchase of the remaining 50 per cent of the shares it did not already own in its joint venture qingdao london
durex company limited for the purchase price of us37 5 million prior to this date the joint venture was accounted for as an associated undertaking of 
the group
 shares are held directly by ssl international plc company balance sheet
at 31 march 2007
86
—
87
company balance sheet
company statement of total recognised gains and losses
company accounting policies
2007 2006
note £m £m
fixed assets
intangible assets i 59 27
t angible assets ii 02 39
investments iii 5908 5908
5969 5974
current assets
debtors iv 734 1 73
cash 130 64
864 237
creditors due within one year
financial liabilities v 405 294
other creditors vi 4152 3946
4557 4240
net current liabilities 3693 4003
t otal assets less current liabilities 2276 1971
creditors due after more than one year
financial liabilities v 736 798
provisions for liabilities and charges vii 02 02
net assets 1538 1 1 71
capital and reserves
calledup share capital ix 190 1 90
share premium account x 432 416
other reserves x 455 326
profit and loss account x 461 239
shareholders’ funds—equity x 1538 1 1 71
see accompanying notes to the company financial statements
the financial statements on pages 86 to 93 were approved by the board of directors on 21 may 2007 and were signed on its behalf by
m moran
director
company statement of total recognised gains and losses
for the year ended 31 march 2007
the company has no other gains or losses in either year other than its profit 2006 loss in the year  company accounting policies
as used in the financial statements and related notes the term ‘company’ refers to ssl international plc the separate financial statements of the company
are presented as required by the companies act 1985 and under uk generally accepted accounting practices
a list of principal subsidiary undertakings is presented on page 85
basis of preparation
the separate financial statements of the company are presented as required by the companies act 1985 as permitted by the act the separate financial
statements have been prepared in accordance with uk generally accepted accounting practices ‘uk gaap’ the accounting policies under uk gaap 
are presented on pages  87 to 88
the financial statements have been prepared on the historical cost basis with the exception of financial instruments as described below the principal
accounting policies adopted are set out below 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 note x the company has taken the exemption to prepare a cash flow statement under the terms of frs 1 revised 1996 ‘cash flow statements’
the following paragraphs describe the main accounting policies these policies have been consistently applied to all the years presented
a t angible fixed assets
depreciation is provided to write tangible fixed assets down to a residual value over their estimated useful economic lives at the following annual rates
plant and equipment is depreciated on a straightline basis over a period of between 415 years
b intangible assets
software developments and licences capitalised are amortised on a straightline basis over a period of between 510 years
c investments
investments in subsidiaries are stated at cost less provisions for any impairment in value
the company has an investment in own shares which represent shares acquired by the seton healthcare group qualifying employee share ownership
t rust ‘quest’ and seton healthcare group employee share ownership plan ‘esop’ the shares are purchased on the open market and are held for
employees participating in various share schemes in accordance with uitf abstract 38 ‘accounting for esop t rusts’ the investment in these shares is shown
as a reduction in shareholders’ funds
d t axation
the charge for taxation is based on the lossprofit for the year 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 provision is made at rates expected 
to be applicable when the liabilities or assets are likely to crystallise
e foreign currencies
t ransactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction 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
f derivative financial instruments
the company uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements the company does not hold
or issue derivative financial instruments for speculative purposes
with the exception of derivative financial instruments and those hedged items forming part of a fair value hedge financial instruments are held at
amortised cost 88
—
89
company accounting policies
notes relating to the company accounts
company accounting policies
continued
hedge accounting
the accounting for the company’s various hedging activities is detailed below
i t ransaction exposure hedging
forward currency contracts hedging transaction exposures are fair valued through the income statement
ii fair value hedges
derivative financial instruments are classified as fair value hedges when they hedge the company’s exposure to changes in the fair value of a recognised
asset or liability any gain or loss from remeasuring the hedging instrument is recognised immediately in the profit and loss account any change in the fair
value of the hedged item attributable to the hedged risk is adjusted against the carrying value of the hedged item and recognised immediately in the
income statement
derivative financial instruments qualifying for fair value hedge accounting are principally foreign currency and interest rate swaps
discontinuance of hedge accounting
hedge accounting is discontinued prospectively when the hedging instrument expires or is sold terminated or exercised or no longer qualifies for 
hedge accounting
g sharebased payments
the company 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’
the company issues equity settled sharebased payments to certain employees equity settled sharebased payments are measured at fair value at the
grant date using the blackscholes option valuation model taking into account the terms and conditions precedent at the time of grant the impact of any
nonmarket vesting conditions is excluded
the total amount to be expensed over the vesting period is determined by reference to the fair value of the equity instruments granted and the number of
equity instruments which eventually vest at each balance sheet date the company revises its estimate of the number of instruments that are expected 
to vest it recognises the impact of the revision of original estimates if any in the income statement and a corresponding adjustment to equity over the
remaining period
h dividend income
dividend income from subsidiary undertakings is recognised within other income at the point the dividend has been declared dividends declared after 
the balance sheet date are not recognised in the profit and loss account notes relating to the company accounts
i intangible assets
software
development
and licences
£m
cost
at 1 april  2006 27
additions 33
at 31 march  2007 60
amortisation and impairment amounts
at 1 april  2006
—
charge for the year 01
at 31 march 2007 01
carrying amounts
at 31 march  2006 27
at 31 march 2007 59
the software development and licences have been brought into use in the latter part of the financial year and as such the amortisation charge for the year
reflects a charge for only part of the year
ii t angible assets
plant
equipment and
motor vehicles
£m
cost
at 1 april 2006 and 31 march 2007 268
depreciation and impairment amounts
at 1 april 2006 229
charge for the year 37
at 31 march 2007 266
net book value
at 31 march  2006 39
at 31 march 2007 02 90
—
91
notes relating to the company accounts
notes relating to the company accounts
continued
iii investments in subsidiary undertakings
the company’s investments are as follows
cost of shares
in subsidiary
undertakings
£m
cost and net book value at 31 march 2006 and 31 march 2007 5908
the company’s investments are listed on page 85
iv debtors
2007 2006
note £m £m
amounts due within one year
amounts owed by subsidiary undertakings 687 1 53
prepayments and accrued income 05 06
692 1 59
amounts due after more than one year
deferred tax viii 42 14
734 1 73
v  financial liabilities
2007 2006
£m £m
amounts due within one year
bank loans and overdrafts 356 248
loan notes 31 33
obligations under finance leases 02 06
forward contract derivatives 03 03
interest rate and currency swaps 13 04
405 294
amounts due after more than one year
loan notes 641 746
obligations under finance leases — 02
interest rate and currency swaps 95 50
736 798
t otal financial liabilities 1141 1 092 loan maturities
2007 2006
loan notes £m £m
loan note or instalments thereof are repayable
after five years from the balance sheet date 59 59
from three to four years — 626
from two to three years 555 28
from one to two years 27 33
t otal due after more than one year 641 746
t otal due within one year 31 33
672 779
obligations under finance lease
obligations under finance lease or instalments thereof are repayable
from one to two years — 02
t otal due after more than one year — 02
t otal due within one year 02 06
02 08
interest rate and currency swaps
interest rate and currency swaps or instalments thereof are repayable
from three to four years — 39
from two to three years 84 06
from one to two years 11 05
t otal due after more than one year 95 50
t otal due within one year 13 04
108 54
the aggregate amount of loans any instalment of which falls due after five years is £59 million 2006 £59 million
vi creditors
2007 2006
£m £m
amounts due within one year
amounts owed to subsidiary undertakings 4051 3842
corporate taxation 22 22
accruals 79 82
4152 3946
vii provisions for liabilities and charges
surplus
property
£m
at beginning of year 02
provisions made during the year —
provisions used during the year —
at end of year 02
current 01
noncurrent 01
02
the provisions  are expected to be utilised within eight years from the balance sheet date 92
—
93
notes relating to the company accounts
notes relating to the company accounts
continued
viii deferred tax
deferred
taxation
£m
at beginning of year 14
credited to the profit and loss account 22
credited to reserves in respect of sharebased payments 06
at end of year 42
2007 2006
the net deferred tax asset is analysed as follows £m £m
accelerated capital allowances 24 05
shortterm timing differences 03 03
sharebased payments 21 12
42 14
ix calledup share capital
calledup £010 ordinary share capital of the parent company
allotted allotted
calledup and calledup and
authorised fully paid authorised fully paid
number number £m £m
at 1 april 2005 250000000 1 8951 4644 250 1 90
employee share options schemes—options exercised — 403589 — —
at 31 march 2006 250000000 1 8991 8233 250 1 90
employee share options schemes—options exercised — 546691 — —
at 31 march 2007 250000000 190464924 250 190
details of share options exercised in the year and contingently issuable shares awarded in the year are given in the group financial statements in note 18
x share capital and reserves
share non profit and
share premium distributable loss total
capital account reserve account equity
£m £m £m £m £m
at 1 april 2006 1 90 4 16 326 239 1171
profit for the year — — — 447 447
reserve transfer 1 29 1 29 —
dividends — — — 1 24 124
sharebased payments ——— 23 23
t axation taken to reserves in respect of sharebased payments ——— 06 06
own shares held issued for cash consideration 02 02
shares issued in the year — 1 6 — 03 13
at 31 march 2007 190 432 455 461 1538
of the reserves of the company £461 million 2006 £239 million is regarded as distributable
 during the year the company received dividends from subsidiary companies of £129 million which are not considered to be distributable outside of the group these have been transferred
out of the profit and loss account to the nondistributable reserve
by virtue of section 230 of the companies act 1985 the company is exempt from preparing a profit and loss account
the shares issued during the year were issued to satisfy exercise of options under the various share schemes outlined in note 18 to the group accounts
equity holders of the parent
included as a reduction in equity is £nil  2006 £04 million in respect of own shares held by the group the group has an investment in own shares which
represents nil shares 2006 82858 acquired by the seton healthcare group qualifying employee share ownership t rust ‘quest’ and seton healthcare
group employee ownership plan ‘esop’ the shares were purchased on the open market and are held for employees participating in various share schemes
the shares held at the start of the year were issued to employees for cash consideration of £02 million to satisfy option exercises under the  sharesave and
executive option schemes during the year further shares were issued into the trusts and issued to employees to satisfy option exercises under the
sharesave and executive option schemes this resulted in a reduction in retained earnings of £03 million
for details on dividends paid and payable during the year see note 20 to the group accounts xi commitments and contingent liabilities
the company has no contracts for future expenditure that have not been provided for
guarantee contracts
the company has not adopted amendments to frs 26 in relation to financial guarantee contracts
where the company enters into financial guarantee contracts to guarantee the indebtedness of other companies within its group the company considers
these to be insurance arrangements and accounts for them as such in this respect the company treats the guarantee contract as a contingent liability until
such time as it becomes probable that the company will be required to make a payment under the guarantee
xii directors’ remuneration
information covering directors’ remuneration interests in shares share options and pension benefits is included in note 18 relating to the group accounts
and in the remuneration report on pages 39 to 45
the following directors are remunerated by the parent company
—g watts
—a catalano
—g corbett
—r adam
—p read
—s murray
xiii sharebased payments
information covering directors’ remuneration interests in shares share options and pension benefits is included in note 18 relating to the group accounts
and in the remuneration report on pages 39 to 45
the information as disclosed in the group accounts under ifrs 2 ‘sharebased payments’ is comparable with uk gaap ssl directory 
94
—
95
ssl directory
commercial
uk and eire
ssl international plc
head office 35 new bridge street london ec4v 6bw
ssl international plc
venus 1 old park lane t rafford park urmston manchester m41 7ha
ssl healthcare ireland limited
monarch industrial estate belgard road dublin 24
continental europe 
austria
ssl healthcare österreich gmbh kuefsteingasse 1519220a 
a1140 vienna austria
belgium
nv ssl healthcare belgium sa 64 koning albert 1 laan 1780 wemmel
belgium
czech republic
ssl czeska republica sro karlovo nam 7  120 00 prague 2 czech republic
denmark
ssl healthcare danmark as ringager 4 d dk2605 brøndby denmark
finland
ssl healthcare suomi oy harmaaparrankuja1 fin02200 espoo finland
france 
ssl healthcare france sa 23 allees de l’europe 92588 clichy cedex
france
germany
ssl healthcare deutschland gmbh  co kg edisonstrasse 5 
63477 maintal germany
greece
ssl hellas sa 17 kim spata avenue po box 17  19004 spata attikis 
athens greece
hungary
ssl magyarorszag kft ip west office building 1117 budapest 
budafoki út 9193 1st floor hungary
italy bologna
ssl healthcare italia spa via marco emilio lepido 1785 
40132 bologna italy
italy gallerate
ssl healthcare italia spa footwear development group via maino 4 
21013 gallarate va italy
netherlands
ssl healthcare nederland nv de weegschaal 14 5215 mns 
hertogenbosch netherlands
norway
ssl healthcare norge as strandveien 35 no1366 lysaker norway
poland
ssl healthcare polska spzoo ubc ll ulszturmowa 2a 
02678 warsaw poland
romania 
ssl romania srl blvd decebal nr1 blh2sc5et6ap 141143 sector 3
bucharest romania
spain
ssl healthcare brands sa c de la marina 1618 t orre mapfre planta 28
08005 barcelona spain
sweden
ssl sverige ab box 1326 5th floor solna t org 3 17126 solna sweden
switzerland
ssl healthcare schweiz ag rheinstrasse 81 4133 pratteln switzerland 
t urkey
lrc products ticaret ve pazarlama ltd sti oztopus cadessi demirel apt
8d5 ulus 34340 istanbul t urkey
americas
ssl canada inc
100 courtland avenue concord ontario l4k 3t6 canada
ssl americas inc
3585 engineering drive suite 200 norcross georgia 300929214 usa
ssl americas logistics operations center
1306 george albert lake road anderson south carolina 29624 usa
asia pacific and rest of the world 
australia
ssl australia pty ltd 225 beach road mordialloc victoria 3195 australia
china
qingdao london durex company limited 103 t aidong 1st road qingdao
266022 people’s republic of china
hong kong
ssl healthcare hong kong ltd rm 1201a admiralty centre t ower one
18 harcourt road hong kong
india
ssl ttk limited
6 cathedral road chennai 600 086 india
indonesia
ssl healthcare indonesia graha atrium building 6fl suite 602c jl senen
raya no135 jakarta pusat—10410 indonesia
japan
ssl healthcare japan ltd urd building 4th  5th floor 275 shibuya
shibuyaku t okyo 1500002 japan
malaysia
ssl healthcare malaysia sdn bhd level 5 wisma samudra 1 jalan
kontraktor u114 seksyen u1 hicomglenmarie industrial park 
40150 shah alam selangor darul ehsan malaysia new zealand
ssl new zealand ltd c54 carbine road mt wellington auckland 
new zealand
singapore
ssl healthcare singapore pte ltd 34 boon leat t errace singapore 119866
t aiwan
ssl healthcare t aiwan ltd 14 f no 102 songlong road sinyi district 
t aipei city 110 t aiwan
thailand
ssl healthcare thailand limited 14th floor ocean t ower 1 
17042 new ratchadaphisek road klongtoey bangkok 10110 thailand
manufacturing and distribution
uk and guernsey
simco limited
charwell house braye road industrial estate vale guernsey 
channel islands gy3 5xa
ssl international plc
barncoose industrial estate wilson way redruth cornwall tr15 3rq
ssl international plc
group distribution centre finlan road stakehill industrial estate
middleton m24 2sj
ssl international plc
whitehouse business park t raynor way off shotton lane peterlee
county durham sr8 2ru
continental europe
ssl healthcare manufacturing sa
poligono cova solera avda can fatjo 151 08191 rubi barcelona spain
asia pacific and rest of the world 
qingdao london international latex company limited
103 t aidong 1st road qingdao 266022 people’s republic of china
ttklig limited
35 old t runk road pallavaram chennai—600 043 india 
ttklig limited
20 perali road virudhunagar—626 001 t amilnadu state india
ttklig limited
652 653 632 k p natham road thiruvandar koil village mannadipet
commune puducheri india
ssl manufacturing thailand limited
wellgrow industrial estate 100 moo 5 bangna t rad rd km36 bangsamak
bangpakong chachoengsao 24180 thailand
research and development 
ssl international plc
205 cambridge science park milton road cambridge cb4 4gz 96
company information
financial calendar
company information trademarks
secretary and registered office
antony mannion
35 new bridge street london ec4v 6bw
stockbrokers
jpmorgan cazenove limited
20 moorgate london ec2r 6da
credit suisse
one cabot square london e14 4oj
auditors
kpmg audit plc
8 salisbury square london ec4y 8bb
solicitors
allen  overy
one bishop square london e1 6ao
hammonds
t rinity court 16 john dalton street manchester m60 8hs
principal bankers
barclays bank plc
7th floor 1 marsden street manchester m2 1hw
registrars
capita registrars
the registry 24 beckenham road beckenham kent br3 4tu
public affairs advisers
the maitland consultancy
12th floor orion house 5 upper st martins lane london wc2h 9ea
the following is a nonexhaustive list 
of the trademarks of the ssl group
adapta
avanti
cuprofen
derbac
diana
diocalm
dr scholl
due in uno
durex
durex sensation
eulactol
fresh step
full marks
gelactiv
hydragel
meltus
mister baby
natruclear
paramol
party feet
performa
pescura
play
pleasuremax
prosport
ralgex
realcheck
remegel
resolve
sauber
scholl
scholl flight socks
syndol
vibrations
woodward’s
month  year event
2007
25 july annual general meeting
6 september dividend payment subject to approval
november interim results
2008
march interim dividend payment
may preliminary results
july annual general meeting
 exact dates to be confirmed
financial calendar designed by pauffley
printed by royle corporate print a carbonneutral
®
company
the paper used for this report contains up to  50 recovered
fibre which is biodegradable all pulps are sourced from fully
sustainable forests and are produced without the use of
elemental chlorine both printer and manufacturing mill are
credited with iso 14001 environmental management systems
whether it’s a new condom designed to
provide greater sensation a cream that
helps repair cracked heels or a pair of shoes
that make walking more comfortable we
strive to create better experiences for
people around the world
01 financial highlights
02 ssl at a glance
04 chairman’s message
05 chief executive’s review 
08 our brands
16 business review
—
our brands
—
our business processes
—
our people
24 corporate responsibility
28 financial review
32 board of directors
33 corporate governance
36 risks and uncertainties
38 directors’ report
39 remuneration report
46 statement of directors’ responsibilities
47 independent auditors’ report
48 consolidated income statement
49 consolidated balance sheet
50 consolidated statement of recognised 
income and expense
51 consolidated statement of cash flows 
52 notes to the consolidated financial statements
85 principal group undertakings 
86 company balance sheet
86 company statement of total recognised gains and losses
87 company accounting policies 
89 notes relating to the company accounts
94 ssl directory
96 company information
96 financial calendar ssl international plc
annual report and accounts 2007
ssl international plc  annual report and accounts 2007
registration number
—
388828
ssl international plc
35 new bridge street
london ec4v 6bw
t el 44 020 7367 5760
fax 44 020 7367 5790
wwwsslinternationalcom


Summary:
 garry watts
chief executive officer
which will enhance people’s sex lives and contribute to 
their general wellbeing the durex range has been extended
considerably over recent years and now includes premium
condoms such as performa and pleasuremax vibrators
such as the play vibrations vibrating ring and a range of
personal lubricants
q how are you driving the growth of scholl footcare
gw the strong performance by scholl footcare this year
comes from a combination of consumerled innovation
wellexecuted implementation and effective advertising
our new products are supported where appropriate by
strong clinical trial data for example freeze verruca  wart
remover which has been proved to be as successful as 
the freezing treatment used by healthcare professionals
also we took the decision this year to bring forward around 
£6 million of our advertising expenditure to the first half 
of the year to ensure we timed our advertising campaigns 
to get the most out of our investment
q slower growth has been reported for scholl footwear
than in your other global categories why is this
gw as we have said before our focus over the past two
years has been to develop our european footwear business
which represents the clear majority of the whole we are
seeing pleasing results in this division as sales in europe grew
by 57 per cent however we have seen a decline in japan
and thailand where there is a high level of competition and
low pricing
q y ou have embarked on a programme to
implement a new it system throughout europe 
why has this been necessary
gw the evolution of ssl has meant that it systems 
across the group whilst robust on a standalone basis 
are disparate thus creating complexity and a lack of visibility 
of information on a groupwide basis implementing sap
q are you satisfied with the progress you have made
this year
gw absolutely last year we set a new financial target 
after virtually achieving our previous target a year early our
new target is to achieve double digit operating profit growth
in each of the three years to 200809 and in this the first 
year we achieved operating profit growth of 19 per cent 
by continuing to invest in our brands and maintaining a tight
control of the cost base we fully expect that we will achieve 
our target in each of the next two financial years
q durex continues to show very strong growth 
what are the key drivers of this
gw the durex brand is evolving it is becoming the number
one authority on sexual wellbeing through consumer
studies and surveys such as the sexual wellbeing global
survey we have obtained indepth insight which gives us a
unique dataset about consumers’ sexual needs from this
base we can continue to innovate and launch new products
sales
0607
0506
0405
at constant exchange rates
£4802m
£443 1m
£4237m
operating profit
0607
0506
0405
at constant exchange rates
£56 1m
£47 2m
£400m 06
—
07
chief executive’s review continued
our strategy
“by continuing to invest in our
brands and maintaining a tight
control of the cost base we fully
expect that we will achieve our
target in each of the next two
financial years”
q y ou have continued to place investment in people 
as a priority for ssl why is this so important to you
gw ssl’s people are its greatest strength attracting
motivating and retaining them is key to our future  business
success we have considerable breadth and depth of
management expertise in ssl and we continue to invest 
in training and development programmes to help all our
people maximise their potential and their contribution 
to the business
creates a single stable it platform giving greater efficiency
increased responsiveness and more accurate information
t o date eight of our european markets have implemented
sap with good results and we expect the rollout across
europe to be complete by 2009 
q y ou have previously stated that you are keen to 
make acquisitions how is this progressing
gw in january this year we completed the acquisition 
of our joint venture in china for £192 million this is an
important step to ensure that we realise the full potential 
of durex and scholl in the rapidly expanding chinese
consumer market so far we have appointed distributors to
cover four major regions which together have a population
of around 117 million we have strengthened our local
management team we have established a sales and
marketing office in shanghai and have introduced scholl
party feet to the market we expect china to be a major
growth market for ssl over the next few years in addition
we continue to look for suitable acquisition opportunities 
in europe and elsewhere in asia pacific
q what is your attitude to returns to shareholders
gw three years ago having completed the disposal
programme we took the deliberate step to rebase the
dividend since then we have seen strong growth in
profitability and we have been very pleased to increase
dividends payable to shareholders over that time we are
proposing a final dividend for 200607 of 47 pence per
share a 7 per cent increase over last year  we believe we can achieve 
our targets through a
combination of
—
consumer insightled
innovation
—
cutting edge advertising
—
investing in efficient
business processes
—
the training and
development of our people
our strategy
ssl ’s business strategy
we aim to exploit the economic potential of both our brand
portfolio and our global operating assets by focusing on 
—
consumer insightled innovation
—
cutting edge advertising
—
efficient business processes
—
training and development of our people
ssl ’s culture
we are committed to our vision that ssl should become
and remain successful socially responsible and lively
through the application of our operating principles
—
attitude
—
behaviour
—
culture
ssl brands
ssl’s brands are innovative high quality and premium
products they have been developed and adapted in
response to consumer needs and 21st century lifestyles 
our international portfolio successfully blends the very best
of old and new building on the heritage and history of brands
like durex and scholl with stateoftheart technology  intensive
consumer research and creative marketing support 
for more information on our portfolio of brands and the
benefit they bring to our consumers please turn the page