Gsk Plc · LSE:GSK

Gsk — 32nd Annual JP Morgan Healthcare Conference 2014

13 slides from Gsk's conference presentation, Jan 14, 2014

  1. Slide 1: 32nd Annual JP Morgan Healthcare Conference

    32nd Annual JP Morgan Healthcare Conference Simon Dingemans, CFO January 14, 2014

  2. Slide 2: 2013: A year of strategic delivery

    2013: A year of strategic delivery Grow a diversified  Multiple drivers of sales growth in place global business  Significant pipeline filings & approvals  Continued restructuring of operating costs Deliver more products  Further financial efficiency gains of value  Strong cash generation and r

  3. Slide 3: Further strengthening of business mix

    Further strengthening of business mix Sales growth (ex disposals) 9 months YTD: +2%* (CER) Pharmaceuticals Vaccines Consumer 67% 13% 20% 9m YTD sales 9m YTD sales 9m YTD sales +1%* -2%* +5%* Sales growth 9m YTD Sales growth for 9m YTD Sales growth 9m YTD +3%* (ex Cervarix in Japan) *CER growth rates

  4. Slide 4: Continued rebalancing of geographies

    Continued rebalancing of geographies 38% of GSK’s overall business is outside the US & Europe Europe 29% 9m YTD sales US Japan +1%* 33% Sales growth 9m YTD 9m YTD sales 7% 9m YTD sales +3%* EMAP Sales growth 9m YTD -2%* 25% Sales growth 9m YTD 9m YTD sales +5%* ex Cervarix in Japan +1%* Sales growth

  5. Slide 5: Significant R&D delivery of new products in 2013

    Significant R&D delivery of new products in 2013 Major additions to three core franchises: Respiratory, Oncology and HIV Date of 1st approval in a major market 10 May 29 May + 12 August 18 December Combination Indication 9 Jan 2014 32nd Annual JP Morgan 14 January 2014 5 Healthcare Conference

  6. Slide 6: Continued progress in building a more sustainable pipeline

    Continued progress in building a more sustainable pipeline Files currently with regulators Key Ph III data expected in 2014  albiglutide  Arzerra (DLBCL, relapsed CLL, maintenance CLL)  Arzerra CLL first line  darapladib (SOLID)  dolutegravir-Trii  MAGE A3 (MAGRIT)  ff mono  MEK + BRAF (v Ze

  7. Slide 7: GSK Financial Architecture ensuring focus on returns

    GSK Financial Architecture ensuring focus on returns Sales growth Operating EPS leverage Focus Focus Returns to on on shareholders returns returns Financial Free Cash efficiency Flow Cash flow growth 32nd Annual JP Morgan 14 January 2014 7 Healthcare Conference

  8. Slide 8: Continued delivery of restructuring benefits

    Continued delivery of restructuring benefits Sales £2.7bn of annual savings delivered to date growth  Manufacturing efficiencies  Supply chain simplification and alignment Operating  New technologies leverage  Operational simplification  Centralisation of support functions  Improved capabiliti

  9. Slide 9: Further financial efficiency gains

    Further financial efficiency gains Sales Operating profit growth  Funding rate reduced by 3% (vs 2010) Operating  Target debt rating maintained: A1/P1 leverage  Effective tax rate expected to be 24% or less for 2013  Patent box and other benefits to come Financial  Long-term share buyback progr

  10. Slide 10: Continued focus on cash flow

    Continued focus on cash flow 9m YTD Net cash from operations: £5.0bn +10%* Sales growth Working  Tighter control of receivables and capital payables discipline  Supply chain initiatives driving inventory delivery Operating leverage Capital  Investment behind launches and expenditure new technolog

  11. Slide 11: Returns to shareholders

    Returns to shareholders £5.2bn £23bn+ Cash returned to shareholders Cash returned to shareholders 2013 Past 5 years £3.7bn £1.5bn £17bn £6bn Dividends Buybacks Dividends Buybacks 9m YTD +6%* *Interim dividends per share for first three quarters of 2013, up ~6%. 32nd Annual JP Morgan 14 January 2014

  12. Slide 12: 2013: A year of strategic delivery

    2013: A year of strategic delivery Grow a diversified  Multiple drivers of sales growth in place global business  Significant pipeline filings & approvals  Continued restructuring of operating costs Deliver more products  Further financial efficiency gains of value  Strong cash generation and r

  13. Slide 13: Thank you

    Thank you 13

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