Slide 1: 2020 Full Year Results
2020 Full Year Results 3 February 2021
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements This presentation may contain forward-looking statements. Forward-looking statements give the Group’s current expectations or forecasts of future events. An investor can identify these statements by the fact that they do not relate strictly t
Slide 3: Agenda
Agenda 2020 progress and priorities to separation Emma Walmsley, Chief Executive Officer 2020 results and 2021 guidance Iain Mackay, Chief Financial Officer Luke Miels, President Global Pharmaceuticals Commercial execution David Redfern, Chief Strategy Officer, Chairman ViiV Brian McNamara, CEO GSK
Slide 4: Emma Walmsley, CEO
Emma Walmsley, CEO 3 February 2021
Slide 5: Strong progress on our priorities in 2020
Strong progress on our priorities in 2020 Delivered 2020 guidance 9 major approvals Innovation Strengthened growth 9 new Phase 3 study driver performance starts Integrated Consumer JV >20 late-stage assets and Performance with Pfizer over 20 BD deals Advanced COVID Separation on track solutions Trus
Slide 6: High confidence in competitive growth outlook for new companies
High confidence in competitive growth outlook for 2 new companies Priorities to separation 2H 2022 Innovation New GSK: a leading • Strengthen and advance pipeline • Launch execution 23-24 June 2021 biopharma company with Biopharma investor update R&D focused on science of the to include outlook, imm
Slide 7: 2020 results and 2021 guidance
2020 results and 2021 guidance Iain Mackay, CFO
Slide 8: Headline results
Headline results Reported Pro forma 2020 % % £m AER CER CER Turnover 34,099 1 3 (2) Total operating profit 7,783 12 15 n/a Total EPS 115.5p 23 26 n/a Adjusted operating profit 8,906 (1) 2 (3) Adjusted EPS 115.9p (6) (4) n/a Free cash flow 5,406 7 n/a n/a 8
Slide 9: Results reconciliation
Results reconciliation 2020 Disposals, significant Total Intangible Intangible Major Transaction legal and Separation Adjusted results amortisation impairment restructuring related other costs results Turnover 34.1 34.1 (£bn) Operating 7.8 0.8 0.3 1.5 1.3 (2.8) < 0.1 8.9 profit (£bn) EPS 115.5 12.6
Slide 10: Pharmaceuticals
Pharmaceuticals 2020 Sales Operating profit & margin Sales All figures £m -150bps CER Dovato, Trelegy, Nucala, Juluca, Zejula, -160bps AER Benlysta 2020 Total : £17,056m: -1% CER; -3% AER 26.2% +12% CER Pandemic-related lower demand for 24.5% +11% AER antibiotics -15% CER -16% AER 9,724 8,778 8,776
Slide 11: Vaccines
Vaccines 2020 Sales Operating profit & margin Sales All figures £m -1% CER -190bps CER -2% AER -260bps AER Flu sales execution 7,157 6,982 41.4% Shingrix geographical expansion 541 733 38.9% Pandemic impact 1,810 1,989 1,018 1,029 2,966 2,713 Operating profit 3,788 3,231 Operating leverage from redu
Slide 12: Consumer Healthcare
Consumer Healthcare 2020 Sales Excluding brands divested/ Sales under review +4% CER Operating profit & margin All figures £m Total -2% CER +30bps CER VMS 10,468 22.3% CER Sensodyne strength 10,033 22.0% 1,152 522 22.1% AER 8,995 Voltaren OTC switch in US 9,316 9,511 1,098 20.8% 2,673 2,753 Cold and
Slide 13: Sales and Adjusted operating margins
Sales and Adjusted operating margins 2020 Sales Adjusted operating margin All figures £m 13
Slide 14: Adjusted operating profit to net income
Adjusted operating profit to net income Continued delivery of financial efficiency 2019 2020 £m £m 2021 Outlook* Operating profit 8,972 8,906 Net finance expense (810) (844) Between £850-900m Share of associates 74 33 Tax (1,318) (1,295) Tax rate 16.0% 16.0% Around 18% Non-controlling interests (787
Slide 15: Free cash flow of £5.4bn
Free cash flow of £5.4bn £m Key Drivers 2019 free cash flow 5,073 Favourable RAR and improved operating Lower CCL 8 profits, offset by increase in receivables, increased tax payments and adverse exchange impacts Higher net operating cash** 213 Proceeds relating to Consumer Lower net Capex* 748 dives
Slide 16: 2021 guidance and 2022 outlook
2021 guidance and 2022 outlook Building towards separation 2021 2022 Strategic Continued delivery of: separation readiness; strengthening and advancing pipeline; launch execution; strong growth priorities driver momentum; sustainably competitive operations and margin expansion Meaningful improvement
Slide 17: Commercial execution
Commercial execution Luke Miels, President Global Pharmaceuticals David Redfern, Chief Strategy Officer, Chairman ViiV Brian McNamara, CEO GSK Consumer Healthcare
Slide 18: Strong contribution from key respiratory growth drivers
Strong contribution from key respiratory growth drivers Trelegy: clear global leader in single inhaler triple therapy Nucala: global leader in IL-5 US Triple Therapy Market Share* Moving Quarterly Total (MQT) Market Share** Nucala 45% Trelegy 80% 73% Competitor 40% 70% 62% 63% 35% 56% 56% 56% 59% Sy
Slide 19: Benlysta: first and only biologic for SLE and LN
Benlysta: first and only biologic for SLE and LN Continued double-digit growth after 9+ years, further upside opportunity Significant unmet patient need remains FY 2020: £719m, +19% CER 330k SLE patients in the US Competitively differentiated: US approval in LN expands value proposition to r
Slide 20: Strong launches driving uptake in Oncology
Strong launches driving uptake in Oncology Zejula: Best-in-class PARP inhibitor with Blenrep: Establishing RRMM leadership to lead opportunity for continued strong growth way for earlier line combinations 1L Maintenance Setting – New + Continuing Patients* US Accounts Ordering Blenrep** New Accounts
Slide 21: Shingrix: strong underlying demand with likely short term pandemic disruption
Shingrix: strong underlying demand with likely short term pandemic disruption Q4 2020 reflected return to growth Expected disruption in the US for 2021 US TRx Trends 2019 vs 2020* 350,000 300,000 250,000 200,000 150,000 100,000 50,000 2019 2020 COVID-19 resurgence continuing into 2021 FY 2020: £
Slide 22: HIV: Dovato and Cabenuva to accelerate growth outlook
HIV: Dovato and Cabenuva to accelerate growth outlook Cabenuva**: unique Continued strong execution driving Dovato growth long-acting regimen US Switch/Add NBRx Share % (R4W)* 70% Non DTG STR US approval received January 2021 DTG Regimens 60% Dovato Differentiated approach: first and only once-
Slide 23: Integration update
Integration update Successful to date and firmly on track Key milestones Synergies Portfolio Commercial integration £500m 2022 annual synergy Transactions completed largely complete, target remains on track: delivering on £1 billion manufacturing integration - Delivered on guidance of proceeds
Slide 24: Consumer Healthcare FY20 Performance
Consumer Healthcare FY20 Performance Revenue +4%1, gaining share overall2 , with strong ecommerce growth Centrum, Emergen-C and Caltrate all up double digit, VMS proforma sales up high teens, ahead of the market Key highlights Strong emerging markets growth, particularly in China and retained bu
Slide 25: World class portfolio with category leading positions
World class portfolio with category leading positions Top 4 categories, additionally #1 positions in Digestive Health and Smoker’s health1 Therapeutic Vitamins, Minerals Pain Relief Respiratory Oral Health and Supplements Category position #1 #1 #1 #1 25 1 All categories ex Therapeutic Oral Health b
Slide 26: R&D update
R&D update Hal Barron, M.D., Chief Scientific Officer & President R&D
Slide 27: Building a sustainable pipeline of transformational vaccines and medicines
Building a sustainable pipeline of transformational vaccines and medicines 57 vaccines and medicines in our pipeline with >20 late-stage assets and >10 with blockbuster potential Significant progress in accelerating Oncology, with a focus on immunology – both IO and cell therapy Best in class Infect
Slide 28: 2020 delivered significant progress in strengthening and advancing our pipeline
2020 delivered significant progress in strengthening and advancing our pipeline Science Strengthened our pipeline • 9 major approvals: Blenrep multiple myeloma, Zejula 1L ovarian cancer, Trelegy asthma, Rukobia, Nucala HES, Benlysta LN, Tivicay (paediatric), Vocabria/Cabenuva (EU and Canada), Duvroq
Slide 29: Strong R&D pipeline
Strong R&D pipeline 17 vaccines and 40 medicines First time in human/POM (Ph1/1b) Proof of concept (Ph1b/2) Pivotal (Ph2/3)/ Registration Key: 3858279* (CCL17 inhibitor) OA pain 3640254 (maturation inhibitor) HIV Benlysta3 + Rituxan SLE Oncology 3745417 (STING agonist) cancer 3228836* (HBV ASO) HBV
Slide 30: High value late-stage pipeline; >10 potential blockbuster launches by 2026
High value late-stage pipeline; >10 potential blockbuster launches by 2026 2021 - 2022 2023 - 2026 Cabenuva Cabotegravir RSV gepotidacin HBV ASO IL-5 LA HIV LA PrEP HIV older adults uUTI hepatitis B asthma VIR-7831 otilimab feladilimab dostarlimab daprodustat bintrafusp COVID COVID* HNSCC/NSCLC comb
Slide 31: Innovative oncology portfolio
Innovative oncology portfolio 15 oncology assets in development (12 in I-O & cell therapy) Phase 1 Phase 2 Phase 2/3 Molecule (dose (FTIH) (pivotal) expansion) Zejula (niraparib) First line maintenance ovarian, other solid tumours under investigation Blenrep (belantamab mafodotin)† Multiple myeloma
Slide 32: Blenrep: opportunity in earlier lines of multiple myeloma
>US$1BN potential Blenrep: opportunity in earlier lines of multiple myeloma First BCMA targeted agent approved Development in earlier lines DREAMM-2 demonstrated clinically meaningful Studies ongoing to optimize dose for combinations with benefit in heavily pre-treated relapsed/refractory SoC and
Slide 33: Feladilimab, ICOS receptor agonist: several near-term catalysts anticipated
>US$1BN potential Feladilimab, ICOS receptor agonist: several near-term catalysts anticipated Novel I-O target, expected to modulate Clinical development approach T-cell dynamics for feladilimab (GSK’609) Initial development in 1L relapsed/metastatic HNSCC >500k people diagnosed globally/year IN
Slide 34: World leader in Infectious Diseases
World leader in Infectious Diseases 30 vaccines and medicines in development First time in human/POM (Phase 1) Proof of concept (Phase 1b/2) Pivotal (Phase 2/3 /Registration) Marketed 3186899* (CRK-12 inhibitor) visceral leishmaniasis 3640254 (maturation inhibitor) HIV cabotegravir LA HIV PrEP Caben
Slide 35: RSV older adults: major opportunity with high unmet need
>US$1BN potential RSV older adults: major opportunity with high unmet need Significant opportunity; first-in-class Phase 2: compelling antibody response potential and T cell restoration maternal Features pre-fusion antigen Antibody Response T-Cell Response combined with AS01 adjuvant Proven adju
Slide 36: VIR-7831: potential best-in-class COVID-19 antibody
>US$1BN potential VIR-7831: potential best-in-class COVID-19 antibody Improved lung Blocks viral entry into bioavailability3 healthy cells Dual action (neutralization)1,2 Clears infected cells Extended by recruiting the half-life1,2 immune system1,2 Low dose allows High barrier to resistance; for IM
Slide 37: Multiple important catalysts in 2021
Multiple important catalysts in 2021 Anticipated submissions Pivotal Proof of and approvals data concept VIR-7831 in COVID-19 otilimab in COVID-19 (OSCAR) Cabenuva (US) in HIV daprodustat in renal anaemia feladilimab in NSCLC* dostarlimab combo 1L EC (RUBY) cabotegravir LA PrEP in HIV NY-ESO in NS
Slide 38: High confidence in competitive growth outlook for new companies
High confidence in competitive growth outlook for 2 new companies Priorities to separation 2H 2022 Innovation New GSK: a leading • Strengthen and advance pipeline • Launch execution 23-24 June 2021 biopharma company with Biopharma investor update R&D focused on science of the to include outlook, imm
Slide 39: Q&A
do more feel better live longer Q&A
Slide 40: Appendix
Appendix
Slide 41: Our R&D pipeline
Innovation Our R&D pipeline 17 vaccines and 40 medicines First time in human/POM (Ph1/1b) Proof of concept (Phase 1b/2) Pivotal (Phase 2/3)/ Registration 3858279* (CCL17 inhibitor) OA pain 3640254 (maturation inhibitor) HIV Benlysta3 + Rituxan SLE Rx Vx 3745417 (STING agonist) cancer 3228836* (HBV A
Slide 42: Upcoming milestones that will inform our progress
Innovation Upcoming milestones that will inform our progress 2H 2020 1H 2021 2H 2021 1H 2022 2H 2022 Anticipated Nucala NP dostarlimab (PD-1) dMMR pan-tumor bintrafusp alfa (TGFβ trap/anti-PDL1) 2L BTC Dostarlimab (PD-1) combo with CT 1L EC (RUBY) belantamab mafodotin (BCMA) 3L+ MM (DREAMM-3) su
Slide 43: Changes in portfolio since Q3 2020
Innovation Changes in portfolio since Q3 2020 Changes to pipeline New to Phase I expansion/ New to Phase I New to Pivotal New to Registration Phase II GSK3915393 (TG2 inhibitor) celiac disease GSK3511294 (LA anti-IL5 antagonist) asthma* GSK2556286 (Mtb inhibitor) TB RSV Maternal GSK3729098 (Ethionam
Slide 44: 2021 outlook
2021 outlook Adjusted EPS/Dividend Operating costs Other Adjusted EPS guidance: SG&A and R&D: Royalties: Mid to high-single digit decline at CER Tight cost control, with targeted Between £350-400m Dividend: investments, and restructuring benefits Net finance expense: Expect 80p for 2021 R&D investme
Slide 45: Currency
Currency 2020 currency sales exposure 2021 Adjusted EPS ready reckoner US $ 43 % US $ 10 cents movement in average exchange rate for full year Euro € 19 % impacts Adjusted EPS by approx. +/- 6.0% Japanese ¥ 6% Other* 32 % Euro € 10 cents movement in average exchange rate for full year impacts Adjust
Slide 46: Expected costs and savings under Major Restructuring Programmes & Consumer Separation
Expected costs and savings under Major Restructuring Programmes & Consumer Separation Full Year £bn Cumulative 2021 2022 2023 Date 2020 Actuals to Announced 2020 Average Total 2019 Actuals Projected 1 Rates Lifetime Savings 2 0.2 0.3 0.5 0.5 2018 Restructuring Q2’18 Total charges 1.2 0.3 0.3 1.75 Pr
Slide 47: 2020 Quarterly Group Performance
2020 Quarterly Group Performance Sales (Pro Forma) Adjusted EPS Growth rates at CER % 26% 10% 1% Q1 Q2 Q3 Q4 FY -1% -2% -5% -5% -4% -10% -38% ETR: 13.7% ETR: 20.5% ETR: 16.8% ETR: 13.9% ETR: 16.0% ETR: Effective Tax Rate 47
Slide 48: Acronyms
Acronyms • AMR anti-microbial resistance • MM multiple myeloma • ATM Access to Medicine • MoA mechanism of action • COPD chronic obstructive pulmonary disease • NP nasal polyps • DTG dolutegravir • NRDL National Reimbursement Drug Listing • EGPA eosinophilic granulomatosis with polyangiitis • NSCLC