GlaxoSmithKline Pharmaceuticals Limited · NSE:GLAXO
GlaxoSmithKline Pharmaceuticals — FY2008 Earnings Presentation
20 slides from GlaxoSmithKline Pharmaceuticals's earnings presentation, Feb 20, 2009
Slide 1: Performance 2008
Performance 2008 20th February 2009 Presentation by Dr. H B Joshipura Mr. M B Kapadia
Slide 2: Key Highlights
Key Highlights Net Sales growth at 10.1% – Priority products and Vaccines grow at 10% – Tykerb heralds entry in Oncology; 2 in-licensing deals signed for Olmesartan and Micafungin Focus on product mix, managing material cost escalations and tight expense control Trading Profit maintained at 35% PBT
Slide 3: What We Presented in February 2008…
What We Presented in February 2008…
Slide 4: What We Presented….. New Pharma Products
What We Presented….. New Pharma Products NCE India launch Key Differentiation 1st in Class. Dual mechanism Tykerb 2008 to cut of blood supply to the tumor Inlicensed - Cardio H1-2008 Cardiovascular Vascular Inlicensed - Critical 2009 Critical Care Care New corticosteoid in a novel 2009 device - work
Slide 5: What we Presented………. Vaccines
What we Presented………. Vaccines NCE India launch Key Differentiation Rotavirus - biggest Rotarix Q2-2008 cause of diarrhoea Cervical cancer vaccine Cervarix 2009 Infanrix Hexa 2009 DTPa + Hib + HB + IPV Strep-Pneumonia - Synflorix 2010 vaccine
Slide 6: Reorganisation of Business Units……
Reorganisation of Business Units…… Consolidate GSK strength in Primary care Enhance presence in growing therapy areas/specialties Improve penetration in Rural /extra urban markets Consolidate Presence in Hospitals Maximize resources for growth
Slide 7: Achievements to date…
Achievements to date… Rx Vaccines In Progress
Slide 8: Growth 2008
Growth 2008 In INR Mn Continuing Businesses Net Sales 16,604 10.1% Gross Margin 10,127 10.6% Staff costs 1,728 13.4% Other Opex 2,787 7.5% Operating Income 203 8.6% Operating Profit 5,816 11.3% Treasury Income 979 38.5% Other Income 4 PBT 6,799 14.6%
Slide 9: Financials – As Is basis
Financials – As Is basis Jan - Dec 07 Jan - Dec 08 Change % to % to Rs. % Rs. Lakhs Rs. Lakhs Sales Sales Lakhs Growth 1712,84 Sales 1751,56 135,70 Less: Excise Duty on Sales 91,15 1577,14 100 Net Sales 1660,41 100 83,27 5 19,03 Other Operating Income 20,27 1596,17 101 Income from Operations 1680,68
Slide 10: Financials – As Is basis
Financials – As Is basis Jan - Dec 07 Jan - Dec 08 Change % to % to Rs. % Rs. Lakhs Rs. Lakhs Sales Sales Lakhs Growth Operating Expenses 6,84 Excise Duty on stock/samples (4,88) 155,70 Employees cost 172,75 10 17,05 (11) 16,16 Depreciation 16,34 300,08 19 Other Expenditure 308,60 19 8,52 (3) (6,73)
Slide 11: Financials 2008
Financials 2008 Continuing Businesses Jan - Dec 07 Jan - Dec 08 Change % to % to % Rs. Lakhs Rs. Lakhs Rs. Lakhs Sales Sales Growth 1635,91 Sales 1751,56 127,60 Less: Excise Duty on Sales 91,15 1508,31 100 Net Sales 1660,41 100 152,10 10 18,70 Other Operating Income 20,27 1527,01 101 Income from Ope
Slide 12: Financials 2008
Financials 2008 Continuing Businesses Jan - Dec 07 Jan - Dec 08 Change % to % to % Rs. Lakhs Rs. Lakhs Rs. Lakhs Sales Sales Growth Operating Expenses 2,57 Excise Duty on stock/samples (4,88) 152,35 10 Employees cost 172,75 10 20,40 (13) 16,02 Depreciation 16,34 287,67 19 Other Expenditure 308,60 19
Slide 13: Net Sales
Net Sales In INR Mn Category FY 2007 FY 2008 Gr% Priority 10,025 10,879 Price Controlled 4,005 4,408 10%, Adjusted for ED reduction on purchased formulations which Rx Sales 14,048 15,318 9% is not reflected in Net Sales but reduces Consumption Exports/ Iodex 1,035 1,286 Net Sales 15,083 16,604 10% 2
Slide 14: Segmental Performance 2008
Segmental Performance 2008 In INR Mn Net Sales 15,318 593 694 16,604 16,604 (As is basis) Growth % 9 10 10 10 5 PBT margins 41% 39% 35% 35% 35% 35% 28% 27% 2008 2007 Businesses Exports Iodex Overall Pharma Continuing Treasury Income 979 Profit 5,388 102 196 5,820 6,799 (As is basis) Growth % 11 15 1
Slide 15: Other Income
Other Income In INR Mn 2008 2007 Operating income Service income 69 50 Others 133 137 203 187 Treasury income 279 254 Interest income 700 452 Other income 4 2
Slide 16: Exceptional Items
Exceptional Items In INR Mn 2008 2007 Profit on sale of Fine Chemicals business - 1,809 Profit on sale of HDFC shares 1,327 - Profit on sale / redemption Mutual Funds 145 Government grant for refund of octroi duty 30 - Voluntary Retirement Schemes - (8) Actuarial Gains/(Losses) (235) 44 Provision fo
Slide 17: Interest Rate Impact on Actuarial Valuations
Interest Rate Impact on Actuarial Valuations INR 3.5 Lakhs payable after 11 years Years Disc Rates 0 1 2 3 4 5 6 7 8 9 10 11 12 Outflow - - - - - - - - - - - 350,000 Inflows 5.95% 174,927 185,335 196,362 208,046 220,425 233,540 247,436 262,158 277,756 294,283 311,793 330,345 350,000 6.95% 156,278 16
Slide 18: Cash Flow
Cash Flow In INR Mn 31-Dec-08 31-Dec-07 Cashflow Cash and Bank balance as at 1st January 2008: 1,550 Add: Net Profit earned during the year 5,766 Adjustments for: Depreciation 163 Deferred tax (95) Profit on sale of investments / fixed assets (1,460) 4,374 Changes in Current Assets and Current Liabi
Slide 19: Financial performance
Financial performance EPS and Book Value per share 46.8 52.9 42.7 35.7 30.5 24.4 Book value 17.3 182 EPS ` 161 142 106 112 90 78 2002 2003 2004 2005 2006 2007 2008 PAT % to Sales Return on Net Worth % 25% 27% 32% 23% 29% 30% 29% 29% 21% 27% 19% 22% 18% 13% 2002 2003 2004 2005 2006 2007 2008 2002 200
Slide 20: GlaxoSmithKline
O GlaxoSmithKline Do more, feel better, live longer
GlaxoSmithKline Pharmaceuticals — FY2008 Earnings Presentation on 6ix