Slide 1: Q1 2021 Results
do more feel better live longer Q1 2021 Results 28 April 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 Emma Walmsley, Q1 2021 progress Chief Executive Officer Luke Miels, President Global Pharmaceuticals Business update David Redfern, Chief Strategy Officer, Chairman of ViiV Brian McNamara, CEO GSK Consumer Healthcare Iain Mackay, Q1 2021 financial results Chief Financial Officer Q&A: Hal Barr
Slide 4: Emma Walmsley, CEO
Emma Walmsley, CEO 28 April 2021
Slide 5: On track to deliver strategic priorities
On track to deliver strategic priorities 2021 guidance reconfirmed with meaningful improvement in performance expected in 2022+ 2021 2022 Innovation ✔ Invest in pipeline New GSK ✔ Drive commercial execution Performance ✔ Optimise cost base ✔ ESG leadership Trust ✔ Prepare 2 new companies New Consume
Slide 6: Q1 strategic progress
Q1 strategic progress Financial results reflect year-on-year impact and disruption from COVID with recovery expected H2 Approvals of Pioneered LA HIV Phase 3 starts for Vir-7831 EUA & Innovation treatment with Rukobia and Jemperli & opinion RSV Vaccine and COVID-19 Vaccines Cabenuva launch ‘294 (LA
Slide 7: Focus on New GSK growth outlook and opportunities for shareholder value creation
Investor Update Focus on New GSK growth outlook and opportunities for shareholder value creation Update to include: Strategy Growth Capital Allocation ✔ New GSK purpose, ✔ Growth outlooks ✔ Priorities for capital strategy and culture (2022-2031) investment ✔ Target therapeutic ✔ Key growth d
Slide 8: Business update
Business update Luke Miels, President Global Pharmaceuticals David Redfern, Chief Strategy Officer, Chairman of ViiV Brian McNamara, CEO GSK Consumer Healthcare
Slide 9: Shingrix: confident in H2 recovery following US vaccination programme
Shingrix: confident in H2 recovery following rapid deployment of US pandemic vaccination programme Pandemic vaccination programme disrupted Expect majority of US adults age 50+ fully Shingrix performance in Q1 2021 vaccinated for COVID-19 by end of Q2 US TRx Trends 2020 vs 2021* 100 350,000 80 vacci
Slide 10: Recent launches and life cycle innovation driving growth
Recent launches and life cycle innovation driving growth Launch success builds for Blenrep Zejula market share gain continues post-PRIMA New Patients treated since launch (cumulative) 1 1L Ovarian Cancer Maintenance Setting – New Patients 2 Zejula 1200 80% 1000 Competitor A 60% 800 51% 40% Competito
Slide 11: HIV: momentum building behind Dovato; encouraging launch of Cabenuva
HIV: momentum continuing to build behind Dovato; encouraging launch of Cabenuva Dovato switch growth Positive reception for Cabenuva launch 30% • World’s first long-acting injectable for HIV treatment EU5 • Patent protection beyond 2030 20% US • Positive early signals from US prescribers: 10% • >700
Slide 12: Consumer Healthcare
Consumer Healthcare On track to create leading global consumer healthcare company Key milestones Q1 performance Divestment program complete - £1.1bn net proceeds Continuing sales1 Q1 -9% vs +14%2 Q1 20: Integration: commercial largely complete, ‒ pantry loading Q120 manufacturing progressing ‒
Slide 13: Q1 2021 results
Q1 2021 results Iain Mackay, CFO
Slide 14: Headline results
Headline results Reported Q1 2021 % £m AER CER Turnover 7,418 (18) (15) Total operating profit 1,693 (16) (8) Total EPS 21.5p (32) (25) Adjusted operating profit 1,881 (30) (23) Adjusted EPS 22.9p (39) (33) Free cash flow (3) >(100) n/a 14
Slide 15: Results reconciliation
Results reconciliation Q1 2021 Disposals, significant Total Intangible Intangible Major Transaction legal and Separation Adjusted results amortisation impairment restructuring related other costs results Turnover 7.4 7.4 (£bn) Operating 1.7 0.2 < 0.1 0.1 0.1 (0.3) < 0.1 1.9 profit (£bn) EPS 21.5 3.2
Slide 16: Sales and adjusted operating margins
Sales and adjusted operating margins Q1 2021 Sales Adjusted operating margin All figures £m Q1 2020 sales at ’20 rates 9,090 Q1 2020 margin 29.4% Pharma down -8% CER 349 COGS down 13% CER 0.7% Vaccines down -30% CER 543 SG&A down 15% CER 0.1% -2.9% CER Consumer down -16% CER 453 R&D up 3% CER 2.5% C
Slide 17: Adjusted operating profit to net income
Adjusted operating profit to net income Continued delivery of financial efficiency 1Q20 1Q21 £m £m Operating profit 2,675 1,881 Net finance expense (187) (190) Share of associates 9 16 Tax (342) (318) Tax rate 13.7% 18.6% Non-controlling interests (282) (246) Net income 1,873 1,143 17
Slide 18: Neutral free cash flow
Neutral free cash flow £m Key Drivers Q120 free cash flow 531 Higher CCL 6 Proceeds relating to profit on disposal of intangible assets, including cabozantinib Lower net Capex* 236 royalty stream Lower net operating cash** 589 Reduced operating profits, including adverse exchange impacts, and advers
Slide 19: Pharmaceuticals
Pharmaceuticals Q1 2021 Sales Operating profit & margin Sales factors All figures £m +280bps CER Dovato, Trelegy, Nucala, Benlysta, +190bps AER Zejula Q1 2021 Total : £3,882m: -8% CER; -12% AER 26.9% 28.8% Unfavourable comparator due to stock- -17% CER building in Q1 2020 -20% AER +3% CER Pandemic-r
Slide 20: Vaccines
Vaccines Q1 2021 Sales Operating profit & margin Sales factors All figures £m -30% CER -2,040bps CER Rapid deployment of COVID-19 mass -32% AER -2,250bps AER vaccination programmes 1,805 47.5% Ongoing pandemic impact 647 1,224 225 327 858 190 25.0% Operating profit factors 912 689 Operating leverage
Slide 21: Consumer Healthcare
Consumer Healthcare Q1 2021 Sales Operating profit & margin Sales factors All figures £m -290bps CER Continued innovation benefit, esp. -360bps AER Voltaren Rx to OTC switch in US Q1 2021 Total : £2,312m: -16% CER; -19% AER 26.8% Impact of divested brands -9% CER -13% AER Unfavourable comparator due
Slide 22: 2021 outlook
2021 outlook Reconfirm full year guidance Group Q2 considerations Group H2 expectations Group FY guidance Mid to high-single digit sales Group expectations for Reconfirm 2021 guidance*: growth stronger H2 performance remain unchanged, as Adjusted EPS to decline mid to SG&A to increase broadly in lin
Slide 23: Q&A
do more feel better live longer Q&A
Slide 24: Appendix
Appendix
Slide 25: Our R&D pipeline
Innovation Our R&D pipeline 19 vaccines and 40 medicines First time in human/POM (Phase 1/1b) Proof of concept (Phase 1b/2) Pivotal (Phase 2/3)/ Registration 3858279* (CCL17 inhibitor) OA pain 3640254 (maturation inhibitor) HIV Benlysta + Rituxan SLE Rx Vx 3745417 (STING agonist) cancer 3228836* (HB
Slide 26: 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 Zejula + dostarlimab 2L+ PROC (MOONSTONE) 4 Dostarlimab (PD-1) combo with CT 1L EC (RUBY) belantamab mafodotin (BCMA) 3L+ MM (DREAMM-3) sub
Slide 27: Changes in portfolio since Q4 2020
Innovation Changes in portfolio since Q4 2020 Changes to pipeline New to Phase I expansion/ New to Phase I New to Pivotal New to Registration Phase II GSK4362676 (Mat2A inhibitor) cancer Covid-19 (Sanofi) GSK4182136 (VIR-7831) emergency use GSK4182137 (VIR-7832) COVID-19 Covid-19 (SK Bioscience) aut
Slide 28: COVID-19 continues to impact ovarian cancer market
COVID-19 continues to impact ovarian cancer market Timing of delayed surgeries impacts number of patients moving to maintenance Ovarian cancer diagnoses down 15% from Oct US Newly Diagnosed Ovarian Cancer Patients 2500 7M 2236 New patient market share growing despite COVID impact 1921 2034 1921 1972
Slide 29: 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 £300-350m Dividend: investments, and restructuring benefits Net finance expense: Expect 80p for 2021 R&D investme