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EMI Group PLC (EMI)

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Tuesday 21 May, 2002

EMI Group PLC

Final Results - Part 2

EMI Group PLC
21 May 2002


PART 2


ATTACHMENTS

EMI GROUP PLC FINANCIAL STATEMENTS


(a)           Financial highlights for the year ended 31 March 2002.
(b)-(c)       Consolidated profit and loss account for the year ended 31 March 2002.
(d)           Consolidated balance sheet at 31 March 2002.
(e)           Statement of total recognised gains and losses for the year ended 31 March 2002.
(e)           Reconciliation of movements in shareholders' funds for the year ended 31 March 2002.
(f)-(g)       Consolidated cash flow statement for the year ended 31 March 2002.
(h)-(o)       Notes to the financial statements for the year ended 31 March 2002.



                                  Attachment (a)


                                 EMI Group plc

                              FINANCIAL HIGHLIGHTS

                        for the year ended 31 March 2002



                                                                                  2002                  2001
                                                                                                   (Restated)
                                                                                    £m                    £m
Group turnover                                                                 2,445.8               2,672.7
EBITDA (i)                                                                       241.9                 389.5
Group operating profit before operating exceptional items and
amortisation (EBITA)                                                             190.9                 332.5
Profit before taxation, exceptional items and amortisation (ii)                  153.3                 259.5
                                                                                 
Adjusted diluted earnings per share (iii)                                        11.8p                 21.9p
Dividend per share                                                                8.0p                 16.0p
Return on sales (iv)                                                              7.8%                 12.4%
Interest cover (v)                                                                4.0x                  5.2x

(i)         EBITDA is Group operating profit before operating exceptional items, depreciation and
            amortisation of goodwill and music copyrights.

(ii)        Profit before taxation, exceptional items and amortisation is before both operating and
            non-operating exceptional items and amortisation of goodwill and music copyrights.

(iii)       Adjusted diluted earnings per share is before both operating and non-operating exceptional items
            and amortisation of goodwill and music copyrights.

(iv)        Return on sales is defined as Group operating profit before operating exceptional items and
            amortisation of goodwill and music copyrights as a percentage of turnover.

(v)         Interest cover is defined as the number of times Group EBITDA is greater than Group finance
            charges.




                                 Attachment (b)


                                 EMI Group plc

                      CONSOLIDATED PROFIT AND LOSS ACCOUNT

                        for the year ended 31 March 2002



                                                                     Year ended 31.03.02            Year ended 31.03.01
                                                                        EMI Group (excl.  EMI Group (excl.
                                                                          HMV Media Grp)    HMV Media Grp)
                                                                 Total      Before excep      Before excep        Total
                                                                          items & amortn    items & amortn
                                                                                                (Restated)
                                                                    £m                £m                £m           £m
TURNOVER:
      Total (including joint venture)                          3,153.7           2,445.8           2,672.7      3,335.3
      Less: joint venture turnover                             (707.9)                 -                 -      (662.6)

Group turnover (note 2)                                        2,445.8           2,445.8           2,672.7      2,672.7
Cost of Sales                                                (1,726.5)         (1,592.7)         (1,696.6)    (1,739.2)
Gross profit                                                     719.3             853.1             976.1        933.5
Distribution costs                                             (127.5)           (119.9)           (136.9)      (136.9)
Administration expenses                                        (708.9)           (577.4)           (556.1)      (608.5)
Other operating income, net                                       16.1              35.1              49.4         49.4

Group operating profit (loss) (note 2)                         (101.0)             190.9             332.5        237.5

       Share of operating profit in joint venture before          44.6                 -                 -         34.4
       exceptional items
       Share of operating exceptional items in joint            (10.3)                 -                 -            -
       venture

Share of operating profit in joint venture                        34.3                 -                 -         34.4
Share of operating losses in associated undertakings             (2.9)             (1.1)             (3.8)        (5.5)

Total operating (loss) profit                                   (69.6)             189.8             328.7        266.4
Non-operating exceptional items (note 3)                             -                 -                 -            -

(Loss) profit before finance charges                            (69.6)             189.8             328.7        266.4

FINANCE CHARGES:
      Group (including associates)                              (60.4)            (60.4)            (74.3)       (74.3)
           Joint venture before exceptional items               (20.7)                 -                 -       (29.3)
           Joint venture - exceptional items                     (2.1)                 -                 -            -
      Joint venture                                             (22.8)                 -                 -       (29.3)

Total finance charges (note 4)                                  (83.2)            (60.4)            (74.3)      (103.6)

(Loss) profit on ordinary activities before taxation           (152.8)             129.4             254.4        162.8
                                                               
Adjusted profit before tax - HMV Group                                              23.9               5.1
Profit before tax, exceptional items and amortisation                              153.3             259.5




                                        Attachment (c)


                                 EMI Group plc

                 CONSOLIDATED PROFIT AND LOSS ACCOUNT continued

                        for the year ended 31 March 2002



                                                                 Year ended 31.03.02             Year ended 31.03.01
                                                                    EMI Group (excl.  EMI Group (excl.
                                                                      HMV Media Grp)    HMV Media Grp)
                                                             Total      Before excep      Before excep         Total
                                                                      items & amortn    items & amortn
                                                                                            (Restated)
                                                                £m                £m                £m            £m
(Loss) profit on ordinary activities before taxation       (152.8)             129.4             254.4         162.8
Taxation on profit on ordinary activities (note 5)          (38.2)            (38.6)            (69.5)        (70.9)
(Loss) profit on ordinary activities after taxation        (191.0)              90.8             184.9          91.9
Minority interests (equity)                                  (8.5)            (15.2)            (16.8)        (12.7)
(Loss) profit attributable to members of the holding       (199.5)              75.6             168.1          79.2
company
Dividends (equity) (note 6)                                 (62.2)                                           (125.2)
Transfer from profit & loss reserve                        (261.7)                                            (46.0)




                                        Attachment (d)


                                 EMI Group plc

                           CONSOLIDATED BALANCE SHEET

                                at 31 March 2002


                                                                                           2002            2001
                                                                                                     (Restated)
                                                                      Notes                  £m              £m
FIXED ASSETS
Music copyrights                                                                          518.2           546.8
Goodwill                                                                                   34.0            61.1
Tangible fixed assets                                                                     277.3           306.8
Investments: associated undertakings                                                        7.1            26.0
Other fixed asset investments                                                              22.4            22.6
Investments: own shares                                                                    13.1            14.4
                                                                                          872.1           977.7
CURRENT ASSETS
Stocks                                                                                     43.0            46.1
Debtors: amounts falling due within one year                                              763.7           868.9
Debtors: amounts falling due after more than one year                                     133.8           115.4
Deferred taxation                                                                          17.1            20.4
Investments: liquid funds                                               8                   0.7             0.7
Cash at bank & in hand & cash deposits                                  8                  85.7           136.9
                                                                                        1,044.0         1,188.4
CREDITORS: amounts falling due within one year
Borrowings                                                              8               (771.0)         (662.9)
Other creditors                                                                       (1,297.1)       (1,358.1)
                                                                                      (2,068.1)       (2,021.0)

NET CURRENT LIABILITIES                                                               (1,024.1)         (832.6)

TOTAL ASSETS LESS CURRENT LIABILITIES                                                   (152.0)           145.1

CREDITORS: amounts falling due after more than one year
Borrowings                                                              8               (373.3)         (467.5)
Other creditors                                                                          (27.4)          (28.9)
                                                                                        (400.7)         (496.4)
PROVISIONS FOR LIABILITIES AND CHARGES
Deferred taxation                                                                         (3.4)           (3.6)
Other provisions                                                        10              (173.1)         (116.7)
Investments: joint venture (HMV Media Group)                                            (159.9)         (168.3)
                                                                                        (336.4)         (288.6)
                                                                                        (889.1)         (639.9)
CAPITAL AND RESERVES
Called-up share capital                                                                   110.4           110.4
Share premium account                                                                     445.8           445.6
Capital redemption reserve                                                                495.8           495.8
Other reserves                                                                            256.0           256.0
Profit & loss reserve                                                                 (2,338.2)       (2,084.0)

Equity shareholders' funds                                                            (1,030.2)         (776.2)

MINORITY INTERESTS (EQUITY)                                                               141.1           136.3
                                                                                        (889.1)         (639.9)



                                       Attachment (e)


                                 EMI Group plc

                 STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

                        for the year ended 31 March 2002



                                                                    2002         2002         2001           2001
                                                                                                       (Restated)
                                                                      £m           £m           £m             £m
(Loss) profit for the financial year
    Group                                                                     (202.0)                        82.3
    Joint venture                                                                 4.1                         3.7
    Associates                                                                  (1.6)                       (4.0)
(Loss) profit for the financial year - as reported                            (199.5)                        82.0
Currency translation - Group*                                      (6.5)                    (11.2)
Currency translation - joint venture and associates                  0.5                     (0.6)
Other recognised losses                                                         (6.0)                      (11.8)
Total recognised gains and losses relating to the year                        (205.5)                        70.2
Prior year adjustment                                                            12.2                           -
Total gains and losses since last Annual Report                               (193.3)                        70.2

*Net currency gains of £1.5m (2001: £13.6m) which relate to foreign currency 
borrowings to finance investment overseas and the related tax charge of £nil 
(2001: £5.5m), have been included within the Group currency translation movement 
on reserves.



               RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

                        for the year ended 31 March 2002

                                                                    2002          2002        2001           2001
                                                                                                       (Restated)
                                                                      £m            £m          £m             £m

Opening shareholders' funds - as reported                                      (788.4)                    (727.6)

Prior year adjustments                                                            12.2                       15.0

Opening shareholders' funds (restated)                                         (776.2)                    (712.6)
(Loss) profit for the financial year                             (199.5)                      82.0
Prior year adjustment to profit                                        -                     (2.8)
Dividends (equity) (note 6)                                       (62.2)                   (125.2)
Other recognised (losses) gains                                    (6.0)                    (11.8)
Goodwill adjustments                                                 9.9                     (4.4)
Share of joint venture reserves adj.                                 3.6                     (2.4)
Shares issued                                                        0.2                       1.0

Net decrease in shareholders' funds for the year                               (254.0)                     (63.6)

Closing shareholders' funds                                                  (1,030.2)                    (776.2)





                                       Attachment (f)


                                 EMI Group plc

                        CONSOLIDATED CASH FLOW STATEMENT

                        for the year ended 31 March 2002


                                                                                         2002             2001
                                                                                           £m               £m

Net cash inflow from operating activities                                               211.9            314.8
Dividends received from associated undertakings                                           0.7              0.3

RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Net interest paid                                                                      (58.7)           (75.6)
Dividends paid to minorities                                                            (3.3)           (25.2)
Net cash outflow from returns on investments and servicing of finance                  (62.0)          (100.8)
Tax paid                                                                               (22.3)           (48.5)

CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
Purchase of music copyrights                                                           (10.6)            (6.4)
Purchase of tangible fixed assets                                                      (39.2)           (42.8)
Sale of tangible fixed assets                                                            10.1             17.8
Purchase of investments: own shares                                                     (1.9)            (1.2)
Purchase of other fixed asset investments                                                   -            (1.2)
Sale of other fixed asset investments                                                     0.1              0.4
Purchase of associated undertakings                                                     (3.6)            (0.8)
Loans repaid by (made to) associated undertakings                                         0.8           (11.2)
Disposal of associated undertakings                                                       1.9                -
Net cash outflow from capital expenditure and financial investment                     (42.4)           (45.4)

ACQUISITIONS AND DISPOSALS
Purchase of businesses net of cash acquired                                            (22.6)           (10.8)
Deferred consideration paid                                                             (1.4)            (3.9)
Net cash outflow from acquisitions and disposals                                       (24.0)           (14.7)
Equity dividends paid                                                                 (125.3)          (125.2)
Net cash outflow before management of liquid resources and financing                   (63.4)           (19.5)
Issue of Ordinary Share capital                                                           0.2              1.0
Management of liquid resources (note 9)                                                   5.1             38.9
Financing (note 9)                                                                        0.6           (73.6)

Net cash inflow (outflow) from management of liquid resources and financing               5.9           (33.7)

Decrease in cash (note 9)                                                              (57.5)           (53.2)




                                  
                                        Attachment (g)


                                 EMI Group plc

                   CONSOLIDATED CASH FLOW STATEMENT continued

                        for the year ended 31 March 2002


Reconciliation of Group operating (loss) profit to net cash inflow from
operating activities:
                                                                                    2002                  2001
                                                                                      £m                    £m

Group operating (loss) profit                                                    (101.0)                 237.5

Depreciation charge                                                                 51.0                  57.0

Amortisation charge:
      Music copyrights                                                              43.5                  42.6
      Goodwill                                                                       6.0                   9.5

Fixed asset write-down                                                               1.1                     -
Goodwill write-down - subsidiaries                                                  29.3                     -
Goodwill write-down - associates                                                     8.5                     -
Associate write-down                                                                 7.0                     -
Amounts provided (note 10)                                                         107.2                  14.1
Provisions utilised (note 10):
      Disposals and fundamental reorganisations                                   (12.5)                 (7.4)
      Other                                                                       (16.9)                (23.6)
(Increase) decrease in working capital:
      Stock                                                                          2.6                 (4.6)
      Debtors                                                                       63.9               (104.6)
      Creditors                                                                     22.2                  94.3

Net cash inflow from operating activities                                          211.9                 314.8


                                 
                                  

                                         Attachment (h)


                                 EMI Group plc

                             NOTES TO THE ACCOUNTS

                        for the year ended 31 March 2002



NOTE 1 - BASIS OF PREPARATION

The consolidated financial statements are prepared under the historical cost
convention and in accordance with applicable accounting standards. The results
for the years ended 31 March 2002 and 31 March 2001 represent continuing
operations.

The financial statements have been prepared on the basis of the accounting
policies set out in the Group's financial statements for the year ended 31 March
2002.

This announcement does not constitute the Group's financial statements for the
year ended 31 March 2002. The financial statements for the year ended 31 March
2002 have not yet been delivered to the registrar however the auditors have
issued an unqualified audit report on the financial statements for this year.


NOTE 2 - SEGMENTAL ANALYSES
                                                             2002           2002           2001           2001
                                                                                     (Restated)     (Restated)
                                                                       Operating                     Operating
                                                         Turnover         Profit       Turnover         Profit
                                                               £m             £m             £m             £m
BY CLASS OF BUSINESS:
     Recorded Music                                       2,029.4           83.1        2,282.0          227.5
     Music Publishing                                       416.4          107.8          390.7          105.0

Group*                                                    2,445.8          190.9        2,672.7          332.5

Operating exceptional items and amortisation**                           (291.9)                        (95.0)
Group operating profit*                                                  (101.0)                         237.5

BY ORIGIN:
     United Kingdom                                         338.9           59.4          338.8           43.1
     Rest of Europe                                         732.0           98.7          753.4          113.6
     Latin America                                           88.1          (2.8)          132.1           12.3
     North America                                          826.3          (2.1)          886.5           76.5
     Asia Pacific                                           439.8           33.6          539.9           81.7
     Other                                                   20.7            4.1           22.0            5.3

Group*                                                    2,445.8          190.9        2,672.7          332.5

BY DESTINATION:
     United Kingdom                                         337.4                         356.3
     Rest of Europe                                         726.9                         721.6
     Latin America                                           88.9                         132.0
     North America                                          828.6                         889.3
     Asia Pacific                                           440.6                         540.0
     Other                                                   23.4                          33.5

Group*                                                    2,445.8                       2,672.7

*Group turnover and operating profit excludes the Group's share of amounts
relating to the joint venture (HMV Media Group) and associated undertakings.

**Comprises operating exceptional items of £(242.4)m (2001: £(42.9)m) and
amortisation of goodwill and music copyrights of £(49.5)m (2001: £(52.1)m. The
split of operating exceptional items and amortisation of goodwill and music
copyrights by class of business is as follows: Recorded Music £(235.1)m (2001:
£(49.1)m, Music Publishing £(56.8)m (2001: £(45.9)m. The split of operating
exceptional items and amortisation of goodwill and music copyrights by origin is
as follows: United Kingdom £(19.2)m (2001: £(9.1)m); Rest of Europe £(53.3)m
(2001: £(15.4)m); Latin America £(22.2)m (2001: £(2.3)m); North America
£(176.0)m (2001: £58.4)m; Asia Pacific £(19.0)m (2001: £(9.3)m; Other £(2.2)m
(2001: £(0.5)m).                                                                
             


                                        Attachment (i)


                                 EMI Group plc

                        NOTES TO THE ACCOUNTS continued

                        for the year ended 31 March 2002



NOTE 2 - SEGMENTAL ANALYSES continued
                                                         2002             2002            2001             2001
                                                                                    (Restated)       (Restated)
                                                    Operating          Average       Operating          Average
                                                       Assets        Employees          Assets        Employees
                                                           £m              No.              £m              No.
BY CLASS OF BUSINESS:
     Recorded Music                                      44.4            8,644           224.4            9,388
     Music Publishing                                   453.9              626           516.9              608
     Other (HMV Media Group)                          (162.9)              n/a         (168.3)              n/a

Group                                                   335.4            9,270           573.0            9,996

BY ORIGIN:
     United Kingdom                                   (113.1)            1,423          (53.2)            1,557
     Rest of Europe                                    (13.1)            2,765             6.6            2,790
     Latin America                                        3.1              422            20.1              567
     North America                                      333.7            2,923           486.3            3,138
     Asia Pacific                                       118.6            1,522           108.8            1,717
     Other                                                6.2              215             4.4              227

Group                                                   335.4            9,270           573.0            9,996


The reconciliation of operating assets to net liabilities is as follows:

                                                                                          2002             2001
                                                                                                     (Restated)
                                                                                            £m               £m

Operating assets                                                                         335.4            573.0
Tax, dividends and net interest payable                                                (166.6)          (220.1)
Capital employed                                                                         168.8            352.9
Net borrowings                                                                       (1,057.9)          (992.8)
Net liabilities                                                                        (889.1)          (639.9)




                                        Attachment (j)

                                 EMI Group plc

                        NOTES TO THE ACCOUNTS continued

                        for the year ended 31 March 2002



NOTE 3 - EXCEPTIONAL ITEMS

(i) Operating exceptional items
                                                                                      2002                2001
                                                                                        £m                  £m
Restructuring and reorganisation costs
    Headcount reduction                                                             (93.7)                   -
    Roster reduction#                                                               (69.4)                   -
Impact of economic downturn in Latin America*                                       (16.7)                   -
Restructuring of satellite label activity##                                         (40.5)                   -
Asset impairment and other**                                                        (22.1)                   -
Proposed merger with Warner Music Group - deal costs                                     -              (42.9)
Total operating exceptional items                                                  (242.4)              (42.9)

# Includes £39.3m relating to the termination of the recording contact with 
  Mariah Carey.
* Resulted in significantly increased returns and bad debts.
##Including goodwill (£23.6m) and associate investment (£15.5m) write-offs.
**Including goodwill (£5.7m) and relocation and other costs (£16.4m).
The attributable taxation credit relating to operating exceptional items 
is £7.8m (2001: £nil).

(ii) Non-operating exceptional items
Non-operating exceptional items are £nil (2001: £nil).



NOTE 4 - FINANCE CHARGES

                                                         2002             2002            2001             2001
                                                           £m               £m              £m               £m
Interest payable on:
     Bank overdrafts and loans                           55.9                             76.4
     Other                                               15.0                              8.0
                                                                          70.9                             84.4
Interest receivable on:
     Bank balances                                      (2.7)                            (6.4)
     Other                                              (7.8)                            (3.7)
                                                                        (10.5)                           (10.1)

Group finance charges (incl associates)                                   60.4                             74.3

Joint venture (HMV Media Group)                                           22.8                             29.3

Total finance charges                                                     83.2                            103.6

Finance charges for associates are £nil (2001: £nil).



                                        Attachment (k)

                                 EMI Group plc

                        NOTES TO THE ACCOUNTS continued

                        for the year ended 31 March 2002



NOTE 5 - TAXATION
                                                                                     2002                 2001
                                                                                                    (Restated)
                                                                                       £m                   £m
Current tax:
     UK corporation tax                                                              10.8                 14.4
     Advance corporation tax written back on ordinary activities                   (20.6)               (12.0)
     Double taxation relief                                                         (6.7)                (7.5)
                                                                                   (16.5)                (5.1)
      Withholding tax                                                                12.1                 15.6
      Other foreign tax                                                              36.4                 58.5
      Adjustment in respect of prior periods                                        (4.3)                (4.2)
     Joint venture                                                                    7.4                  1.4
      Total current tax                                                              35.1                 66.2
Deferred tax:
      Origination and reversal of timing differences                                  2.6                  4.5
Others:
      Associate undertaking                                                           0.5                  0.2
Tax on profit on ordinary activities                                                 38.2                 70.9
There is a tax credit on exceptional items of £7.8m (2001: £nil).



NOTE 6 - DIVIDENDS (EQUITY)
                                                          2002             2001            2002            2001
                                                     per share        per share              £m              £m
Ordinary dividends (net):
     Interim                                             4.25p            4.25p            33.5            33.5
     Adjustment to 2002 and 2001 interim                     -                -           (0.2)           (0.3)
     Proposed final                                      3.75p           11.75p            29.6            92.7
     Adjustment to 2001 and 2000 final                       -                -           (0.7)           (0.7)
                                                         8.00p           16.00p            62.2           125.2

The final dividend of 3.75p per share will be paid on 1 October 2002 to
shareholders on the register at the close of business on 6 September 2002.



                                                                                                                        
                                        Attachment (l)


                                 EMI Group plc

                        NOTES TO THE ACCOUNTS continued

                        for the year ended 31 March 2002



NOTE 7 - EARNINGS PER ORDINARY SHARE
                                                                                     2002                       2001
                                                                                                          (Restated)
Basic earnings per Ordinary Share is calculated as follows:
        Earnings                                                                £(199.5)m                     £79.2m
        Weighted average number of Ordinary Shares in issue                        782.8m                     782.3m
        Earnings per Ordinary Share                                               (25.5)p                      10.1p

Diluted earnings per Ordinary Share is calculated as follows:
        Earnings                                                                £(199.5)m                     £79.2m
        Adjusted weighted average number of Ordinary Shares                        783.6m                     783.1m
        Earnings per Ordinary Share                                               (25.5)p                      10.1p

Adjusted basic earnings per Ordinary Share is calculated as follows:
        Adjusted earnings                                                          £92.1m                    £171.8m
        Weighted average number of Ordinary Shares in issue                        782.8m                     782.3m
        Adjusted earnings per Ordinary Share                                        11.8p                      22.0p

Adjusted diluted earnings per Ordinary Share is calculated as follows:
        Adjusted earnings                                                          £92.1m                    £171.8m
        Adjusted weighted average number of Ordinary Shares                        783.6m                     783.1m
        Adjusted earnings per Ordinary Share                                        11.8p                      21.9p

Adjusted earnings are included as they provide a better understanding of the
underlying trading performance of the Group on a normalised basis.


RECONCILIATION OF ADJUSTED EARNINGS
                                                                                 2002                           2001

                                                                                                            Restated
                                                                   £m       Per Share              £m      Per Share

Earnings/basic EPS                                            (199.5)         (25.5)p            79.2          10.1p

Adjustments:
     Operating exceptional items                                242.4           31.0p            42.9           5.5p
     Non-operating exceptional items                                -               -               -              -
     Share of operating exceptions in joint venture              10.3            1.3p               -              -
     Share of exceptional finance charges in joint                2.1            0.3p               -              -
     venture
     Amortisation of goodwill and music copyrights               51.3            6.5p            53.8           6.9p
     Attributable taxation                                      (7.8)          (1.0)p               -              -
     Minority interest (re music copyright                      (4.3)          (0.5)p           (4.1)         (0.5)p
     amortisation)
     Minority interest (re operating exceptional)               (5.3)          (0.7)p               -              -
     Minority interest (re attributable taxation)                 2.9            0.4p               -              -

Adjusted earnings/adjusted EPS                                   92.1           11.8p           171.8          22.0p

Adjusted dilution impact                                          n/a               -             n/a         (0.1p)

Adjusted earnings/adjusted diluted EPS                           92.1           11.8p           171.8          21.9p

The adjusted weighted average number of Ordinary Shares used in the diluted
earnings per share calculations, 783.6m (2001: 783.1m) is the weighted average
number of Ordinary Shares in issue 782.8m (2001: 782.3m) plus adjustments for
dilutive share options, 0.8m (2001: 0.8m).





                                         Attachment (m)


                                 EMI Group plc

                        NOTES TO THE ACCOUNTS continued

                        for the year ended 31 March 2002



NOTE 8 - BORROWINGS
                                                                                         2002             2001
                                                                                           £m               £m
LONG-TERM BORROWINGS
Loans                                                                                   374.1            467.5
Finance leases                                                                            2.0              2.6
Less: repayable within one year                                                         (2.8)            (2.6)
Total long-term borrowings                                                              373.3            467.5
SHORT-TERM BORROWINGS
Loans and overdrafts                                                                    767.4            659.0
Finance leases                                                                            0.8              1.3
Short-term element of long-term loans                                                     2.8              2.6
Total short-term borrowings                                                             771.0            662.9
Total borrowings                                                                      1,144.3          1,130.4
Liquid funds:
      Investments: liquid funds                                                         (0.7)            (0.7)
      Cash at bank and in hand and cash deposits                                       (85.7)          (136.9)
Net borrowings                                                                        1,057.9            992.8


Long-term borrowings include £18.4m (2001: £111.5m) of borrowings repayable
within one year, which are drawings under long-term committed facilities and,
therefore, have been classified as such. 

Under their banking arrangements, overdraft and cash balances of the Company and
of certain subsidiaries are pooled or offset and cross-guaranteed. Such pooling
and offsets are reflected in the Group balance sheet as appropriate.

Group borrowings include £2.8m (2001: £3.9m) which is secured on assets held
under finance leases and £350.8m proceeds from US $500m of 10-year Guaranteed
Notes in August 1999.

The Group has cash balances of £11.9m held with banks within the UK and £74.5m
held with banks outside, but freely transferrable to, the UK. 

Maturity analysis of long-term borrowings:
                                                                                         2002             2001
                                                                                           £m               £m
Amounts falling due after more than one year are repayable as follows:
      Between one and two years                                                           2.8            115.0
      Between two and five years                                                         19.7              1.9

      After five years:
           By instalments                                                                   -                -
           Other                                                                        350.8            350.6
                                                                                        373.3            467.5

The amount of debt, any of which falls due for payment after more than five
years, is £350.8m (2001: £350.6m).

The group has taken a number of steps to refinance these bank facilities. In
April 2002 a new £1.3bn multi-currency revolving credit facility, with
maturities up to three years, was drawn to repay and cancel most of the existing
short-term bank facilities. In May 2002 it issued a £250m six-year bond, which
refinanced part of the revolving credit facility.


                                           Attachment (n)


                                 EMI Group plc

                        NOTES TO THE ACCOUNTS continued

                        for the year ended 31 March 2002




NOTE 9 - CASH, LIQUID RESOURCES AND FINANCING

The following definitions have been used:

CASH: Cash in hand and deposits repayable on demand if available within 24 hours 
without penalty and including overdrafts.

LIQUID RESOURCES: Investments and deposits, other than those included as cash, 
which are readily convertible into known amounts of cash.

FINANCING: Borrowings, less overdrafts, which have been treated as cash.
Analysis of movement in the Group's net borrowings in the year ended 31 March 2002:


                                                                     Acquisitions/       Exchange
                                                        Cash flow        disposals       movement
                                          At 1.4.01                                                   At 31.3.02
                                                 £m            £m               £m             £m             £m

Cash at bank and in hand                      130.4        (43.4)                -          (2.6)           84.4

Overdrafts                                   (25.6)        (14.1)            (1.0)              -         (40.7)

Cash                                          104.8        (57.5)            (1.0)          (2.6)           43.7

Debt due after more than one year           (464.9)          93.3                -            0.3        (371.3)
Debt due within one year                    (636.0)        (95.0)                -            1.5        (729.5)
Finance leases                                (3.9)           1.1                -              -          (2.8)

Financing                                 (1,104.8)         (0.6)                -            1.8      (1,103.6)
Investments: liquid funds                       0.7             -                -              -            0.7
Cash deposits                                   6.5         (5.1)                -          (0.1)            1.3
Liquid resources                                7.2         (5.1)                -          (0.1)            2.0

Total                                       (992.8)        (63.2)            (1.0)          (0.9)      (1,057.9)

Cash flow on financing of £(0.6)m is split between new loans of £(460.3)m, loans 
repaid of £458.6m and capital element of finance leases repaid of £1.1m.


The Group's net borrowings at 31 March 2002 comprised:

                                                                           Liquid resources &
                                                                                    financing    Net borrowings

                                                                      Cash
                                                                        £m                 £m                £m

Investments: liquid funds                                                -                0.7               0.7
Cash at bank and in hand and cash deposits                            84.4                1.3              85.7
Borrowings due within one year                                      (40.7)            (730.3)           (771.0)
Borrowings due after more than one year                                  -            (373.3)           (373.3)

At 31 March 2002                                                      43.7          (1,101.6)         (1,057.9)

At 31 March 2001                                                     104.8          (1,097.6)           (992.8)




                                         Attachment (o)


                                 EMI Group plc

                        NOTES TO THE ACCOUNTS continued

                        for the year ended 31 March 2002


NOTE 10 - OTHER PROVISIONS FOR LIABILITIES AND CHARGES
                                                                       Disposal & Acquisition and
                                                                      fundamental     integration

                                                        Pensions          reorg'n                      Total
                                           Trading
                                                £m            £m               £m              £m         £m

At 31 March 2001                              26.4          37.0             16.5            36.8      116.7
Currency retranslation                       (0.2)         (0.5)                -             0.5      (0.2)
Provisions utilised                          (7.7)         (8.9)           (12.5)           (0.3)     (29.4)
Charged against:
     Operating profit                        102.2           5.0                -               -      107.2
     Exceptional items                           -             -                -               -          -

Acquisition (disposal) of businesses             -             -                -          (21.6)     (21.6)
Reclassification                               0.4             -                -               -        0.4

31 March 2002                                121.1          32.6              4.0            15.4      173.1

The pension provisions arise in overseas companies in respect of state schemes
and employees covered by the Group's unfunded schemes.

Trading provisions include royalty audit and other trading provisions charged
through operating profit before exceptional items, and restructuring and
reorganisation provisions charged through operating exceptional items.

Provisions utilised relating to disposals and fundamental reorganisations in the
cash flow include £12.5m spent against disposal provisions set up in previous
years.



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