Glaxosmsc 5.25% Regulatory News (AG99)

Publication of GlaxoSmithKline Capital plc

Interim Management Report 2023

Today, 31 July 2023, GlaxoSmithKline Capital plc (the "Company") published on the GSK Group ("GSK") website, www.gsk.com *, its Interim Management Report in respect of the period ended 30 June 2023.

In compliance with Listing Rule 9.6.1 of the UK Financial Conduct Authority ("FCA"), copies of the Company's Interim Management Report, have been submitted to the UK Listing Authority's NSM submission portal via the Electronic Submission System (ESS). A copy can be viewed at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

In accordance with the FCA's Disclosure and Transparency Rules 4.2 and 6.3.5, Appendix A to this announcement contains the Company's Interim Management Report, which includes a description of the principal risks and uncertainties affecting it together with a responsibility statement.

V A WhyteCompany Secretary 31 July 2023

* https://www.gsk.com/en-gb/company/codes-standards-and-reports/#gsk-capital-plc-annual-reports

Cautionary statement regarding forward-looking statements

GSK cautions investors that any forward-looking statements or projections made by GSK, including those made in this announcement, are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Such factors include, but are not limited to, those described in the Company's Annual Report on Form 20-F for 2022, GSK's Q2 Results for 2023 and any impacts of the COVID-19 pandemic.

APPENDIX A

GlaxoSmithKline Capital plc

(Registered number: 02258699)

Interim Management Report

for the half year ended 30 June 2023

Registered office address:

980 Great West Road

Brentford

Middlesex

TW8 9GS

GlaxoSmithKline Capital plc

(Registered number: 02258699)

Interim Management Report

for the half year ended 30 June 2023

GlaxoSmithKline Capital plc

(Registered number: 02258699)

Results announcement and interim management report for the half year ended 30 June 2023

Performance

GlaxoSmithKline Capital plc (the "Company") is a member of the GSK Group (the "Group"). The principal activities of the Company during the financial year were the issuance of notes under the Group's European Medium Term Note programme and the provision of financial services to other companies within the Group.

The Directors do not envisage any change to the nature of the business in the foreseeable future.

Review of business

The Company made a profit for the half year ended 30 June 2023 of £5,408,000 (2022: £7,653,000), which will be transferred to reserves. The Directors are of the opinion that the current level of activity and the period end financial position are satisfactory and will remain so in the foreseeable future.

No dividend is proposed to the holders of ordinary shares in respect of the period ended 30 June 2023 (2022: £nil).

At 30 June 2023, the Company had in issue £8,277,153,000 European Medium Term Notes and £2,560,633,000 US Medium Term Notes (31 December 2022: £9,230,890,000 and £2,688,409,000 respectively), which mature at dates between 2023 and 2045. All notes currently in issue pay interest on a fixed rate basis.

In May 2023, the Company repaid a EUR 750 million 0.125% EUR Medium Term Note.

In addition, the Company further repurchased the following bond holdings on 13th February 2023:

• £75,783,000 of the GBP 1 billion 5.250% European Medium Term Note 2033

• £68,700,000 of the GBP 700 million 6.375% European Medium Term Note 2039

Principal risks and uncertainties

The Directors of GSK plc manage the risks of the Group at a group level, rather than at an individual statutory entity level. For this reason, the Company's Directors believe that a discussion of the Group's risks would not be appropriate for an understanding of the development, performance or position of the Company's business. The principal risks and uncertainties of the Group, which include those of the Company, are discussed in the Group's 2022 annual report which does not form part of this report.

Directors' responsibility statement

The Board of Directors approved this document on 27 July 2023.

The Directors confirm that, to the best of their knowledge, this unaudited condensed financial information for the six months ended 30 June 2023 has been prepared in accordance with Financial Reporting Standard 104 "Interim Financial Reporting" and that the interim management report herein includes a true and fair view of the information required by Disclosure and Transparency Rules (DTR) 4.2.7.

The Directors of the Company are:

Mrs J Brown

Edinburgh Pharmaceutical Industries Limited

Glaxo Group Limited

By order of the Board

Mr A Walker

For and on behalf of Glaxo Group Limited

Corporate Director

27 July 2023

Internet

This Announcement and other information about the GSK Group are available on the website at: http://www.gsk.com.

GlaxoSmithKline Capital plc

Income statement

for the half year ended 30 June 2023

GlaxoSmithKline Capital plc

Statement of comprehensive income

for the half year ended 30 June 2023

GlaxoSmithKline Capital plc

Balance sheet

as at 30 June 2023

GlaxoSmithKline Capital plc

Statement of changes in equity

for the half year ended 30 June 2023

GlaxoSmithKline Capital plc

Cash flow statement

for the half year ended 30 June 2023

GlaxoSmithKline Capital plc

Notes to the financial statements for the half year ended 30 June 2023

1. Accounting presentation and policies

This unaudited Results Announcement containing condensed financial information for the six months ended 30 June 2023 is prepared in accordance with Financial Reporting Standard 104 "Interim Financial Reporting" using the recognition and measurement requirements of Financial Reporting Standard 101 "Reduced Disclosure Framework" and in accordance with the Listing Rules of the UK Listing Authority. The same accounting policies and methods of computation are followed in the interim nancial statements as compared with the most recent annual nancial statements.

2. Operating profit

3. Finance income

4. Finance expense

5. Taxation

6. Trade and other receivables

Amounts due within one year are deposits with Group undertakings of £96,224,896 (2022: £94,201,000) which are unsecured, repayable within one year and earn a market rate of interest (based on benchmark risk-free rate applicable to each currency minus 0.025%) that is consistent with the Group's policy.

Amounts due within one year also include the net proceeds of bond issuances that have been advanced as loans to Group undertakings of £2,194,639,477 (2022: £2,142,436,000) which are unsecured with an interest rate charged between 0.10% and 3.40%.

Amounts due after more than one year include the net proceeds of bond issuances that have been advanced as loans to Group undertakings of £8,558,514,649 (2022: £9,691,844,000), which are unsecured with fixed interest charged between 1.17% and 6.50% per annum and repayable at maturity dates between 2024 and 2045.

Amounts due after more than one year also include a call account with GlaxoSmithKline Finance plc of £107,455,726 (2022: £102,209,000) which is unsecured, repayable on demand and earns a market rate of interest (based on benchmark risk-free rate applicable to each currency minus 0.05%) which is consistent with the Group's policy. The call account balance is classified as a non-current asset as the amounts are not expected to be settled within the year.

7. Prepayments and accrued income

Accrued income relates to interest on amounts owed by Group undertakings (see Note 6).

8. Borrowings

9. Accruals and deferred income

Accruals relates to interest payable on borrowings (see Note 9).

10. Fair value of financial assets and liabilities

The fair values of the financial assets and liabilities are included at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The following methods and assumptions were used to estimate the fair values:

· Cash and cash equivalents - approximates to the carrying amount;

· Borrowings (European and US Medium Term Notes) - based on quoted market prices (a level 1 fair value measurement); 

· Intercompany loans - approximates to the fair value of borrowings (European and US Medium Term Notes); and

· Receivables and payables - approximates to the carrying amount.

The carrying amounts and the fair values of the Company's financial assets and liabilities at 30 June 2023 and 31 December 2022 are illustrated below. 

The Company has no financial assets or liabilities measured at fair value through profit or loss.

Financial liabilities measured at amortised cost for which the fair value of £10,130,824,000 (31 December 2022: £11,355,127,000) as disclosed in the table above are categorised as Level 1, where quoted prices in active markets are used. Similarly, amounts owed by Group undertakings, which include the net proceeds of bond issuances advanced as loans, also approximate to the fair value of these financial liabilities. All other assets and liabilities approximate to the carrying amount.

11. Adjustments reconciling operating profit to operating cash flows

12. Called up share capital

13. Related party transactions

As a wholly owned subsidiary of the ultimate parent company, GSK plc, advantage has been taken of the exemption afforded by FRS 101 "Reduced Disclosure Framework" not to disclose any related party transactions within the Group. There are no other related party transactions.