Slide 1: Year-to-date and Q3 2022 Results
02 November 2022 Year-to-date and Q3 2022 Results Conference call and webcast for investors and analysts gsk.com
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 Year-to-date and Q3 2022
Agenda Year-to-date and Q3 2022 Emma Walmsley Innovation Dr Tony Wood Performance Luke Miels, Deborah Waterhouse and Iain Mackay Trust Emma Walmsley Q&A David Redfern 3
Slide 4: Year-to-date and Q3 2022: Delivering a landmark year
Year-to-date and Q3 2022 Delivering a landmark year Emma Walmsley, Chief Executive Officer 4
Slide 5: Year-to-date 2022: Delivering a landmark year
Year-to-date 2022 Delivering a landmark year Turnover1 Adj. operating profit1 +19% +16% Double-digit turnover and adj. operating profit growth £21.9bn £6.6bn Strong commercial execution with growth3 across the portfolio: • Specialty Medicines +49% (+13% excl. Adj. EPS1 Free cash flow1 Xevudy) • Vacc
Slide 6: Q3 2022 results highlights
Q3 2022 Sales growth +9%1 (+7%2) Improving revenue mix, with prioritised Turnover1 Adj. operating profit1 investment in growth and disciplined cost control, supports confidence in delivering +9% +4% £7.8bn £2.6bn medium-term outlooks • Specialty Medicines: growth across all therapy areas • Vaccines:
Slide 7: Year-to-date 2022: late-stage R&D pipeline momentum
Year-to-date 2022: late-stage R&D pipeline momentum Pipeline Strategic business development Potential best-in-class profile for novel RSV-OA1 candidate vaccine: • 94.1% reduction in severe RSV disease Acquisition of Affinivax, Inc. in older adults • Completed 15 August 2022 • 82.6% overall vaccine e
Slide 8: Innovation
> Innovation Dr Tony Wood GSK
Slide 9: A focused biopharma company
A focused biopharma company Uniting science, technology and talent to get ahead of disease together Science of the immune system, human genetics and advanced technologies Execution Technology Culture Focus on pipeline acceleration Using platform and data Building a culture that is and complementary
Slide 10: Innovation: four focused therapeutic areas
Innovation: four focused therapeutic areas Two thirds of our development portfolio comes from infectious disease and HIV Infectious HIV Immunology/ Oncology Diseases Respiratory RSV OA1 Apretude depemokimab momelotinib MenABCWY N6LS (bNAb)2 Nucala (COPD)4 Jemperli bepirovirsen 3rd generation INSTI3
Slide 11: Potential best-in-class RSV vaccine in the most vulnerable adults
Innovation: potential best-in-class RSV vaccine in the most vulnerable adults Demonstrated consistent and sustained high efficacy Reduction in severe Efficacy in those with Efficacy in those aged disease1 comorbidities2 70-79 years3 94.1% 94.6% 93.8% Key risk factors are age and comorbidities • Olde
Slide 12: Innovation: scientific momentum
Innovation: scientific momentum Advancing the next-generation of potential new vaccines and medicines Infectious Disease HIV • Shingrix data at IDWeek 2022 • Positive proof-of-concept showed sustained protection of findings for N6LS, an up to 10 years after vaccination investigational, broadly neutr
Slide 13: Innovation: 2022-2023 key news flow
Innovation: 2022-2023 key news flow Regulatory approvals or Achieved Priorix - MMR1 (US) H1 2023 daprodustat - ASCEND, anaemia of CKD (US, EU) other regulatory action Vocabria/Rekambys - HIV (JP) momelotinib - MOMENTUM, myelofibrosis (US) Cervarix - human papillomavirus (CN4) RSV older adults vaccin
Slide 14: Performance: growth drivers
Performance: growth drivers Luke Miels, Chief Commercial Officer Deborah Waterhouse, CEO, ViiV Healthcare 14
Slide 15: Q3 2022 turnover £7.8bn, +9%
Performance: Q3 2022 turnover £7.8bn, +9% Strong commercial execution across all product groups • Specialty Medicines: strong demand for Benlysta, Q3-21 sales 6,627 Nucala and new HIV products. Continued Oncology progress Specialty Medicines +11% CER 202 Vaccines +9% CER 194 • Vaccines: Broad-based
Slide 16: Vaccines +9%; Shingrix delivers record performance
Performance: Vaccines +9%1; Shingrix delivers record performance Q3 2022: £760m Shingrix sales • US: higher retail and non-retail demand, partly offset by unfavourable wholesaler inventory movements Shingrix 800 • EU and International: 38% of Q3 sales; post- 700 pandemic rebound, new launches and st
Slide 17: HIV momentum driven by innovation sales
Performance: HIV1 momentum driven by innovation sales Growth led by Dovato and LA2 regimens HIV innovation portfolio 44% 800 41% 38% • Sales: YTD 2022 +9%; Q3 2022 +7% 700 34% 600 29% • Innovation portfolio: >40% sales, reflecting increased 27% Sales (£ millions) 500 25% confidence in Dovato and LA
Slide 18: Performance: financial results
Performance: financial results Iain Mackay, Chief Financial Officer 18
Slide 19: Q3 2022 results and total to adjusted reconciliation
Performance: Q3 2022 results and total to adjusted reconciliation Turnover Operating (£bn) profit (£bn) Q3 2022 EPS Q3 2021 EPS Key dynamics (pence) (pence) Total results - Total 255.9 29.2 Profit from discontinued operations Profit from discontinued Gain on demerger (fair value less book value) (23
Slide 20: Q3 2022 adjusted operating margin
Performance: Q3 2022 adjusted operating margin Stable margin of 33.3%, at AER Q3-21 margin 33.3% Key dynamics COGS +21% CER 3.0% Sales: growth across all product groups COGS: increasing Specialty Medicines and Vaccines mix (65% vs 62%1) SG&A +12% CER 0.6% -1.6% SG&A: continued restructuring benefits
Slide 21: Q3 2022 adj. operating profit to net income
Performance: Q3 2022 adj. operating profit to net income1 Q3 2021 Q3 2022 Key commentary £m £m Operating profit 2,209 2,605 +18% at AER, +4% at CER Increased interest income from higher Net finance expense (190) (177) interest rates and larger cash balances following the demerger Share of associates
Slide 22: Year-to-date 2022 free cash flow of £2.5bn
Performance: Year-to-date 2022 free cash flow of £2.5bn1 Year-to-date 2022 cash generated from operations of £5.8bn1 Key dynamics Q3 YTD 2021 free cash flow 957 Higher cash generated from operations, including: - Increased adjusted operating profit Higher CGFO2 1,923 - Upfront income from Gilead Sci
Slide 23: Increasing guidance for sales and adj. operating profit
Performance: increasing guidance for sales and adj. operating profit Strong Q3 2022 and year-to-date performance YTD 2022 performance 2022 guidance Sales1 Sales1 Between 8% to 10% growth 10% growth to £19.8bn Previous: between 6% to 8% growth Adj. OP1 Adj. OP1 16% growth to £6.2bn Between 15% to 17%
Slide 24: Trust: delivering health impact sustainably
Trust: delivering health impact sustainably Emma Walmsley, Chief Executive Officer 24
Slide 25: Purpose: to get ahead of disease together
Purpose: to get ahead of disease together For health impact, shareholder returns and thriving people Building trust Launched Sustainable Achieved leadership Granted WHO Procurement Programme ranking in S&P Corporate prequalification for first for suppliers to support Sustainability Assessment approv
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Slide 27: Appendix
Appendix 27
Slide 28: Innovation: 65 potential new vaccines and medicines
Innovation: 65 potential new vaccines and medicines Phase I Phase II Phase III/Registration 2904545* (recombinant protein) Ɨ C. difficile 3437949* (recombinant protein) Ɨ Malaria fractional dose Bexsero infants US (recombinant protein) MenB 4429016* (bioconjugated, recombinant protein) Ɨ K. pneumoni
Slide 29: R&D pipeline changes since last quarter
Innovation: R&D pipeline changes since last quarter Phase I Phase II Phase III Registration GSK3772701 (P falciparum whole GSK5101955A (MAPS) cobolimab (anti-TIM-3) NSCLC Menveo (conjugated liquid cell inhibitor) malaria Pneumococcal 24-Valent – formulation) MenACWY Paediatric letetresgene-autoleuce
Slide 30: Full-year outlook considerations to support modelling
Performance: full-year outlook considerations to support modelling Specialty Medicines turnover Vaccines turnover General Medicines turnover Increase low double-digit % for Specialty, excluding Increase mid to high-teens %, excluding pandemic Broadly flat Xevudy sales adjuvant sales Previous: slight
Slide 31: Continuing operations basis for 2022 guidance
Performance: continuing operations basis for 2022 guidance Historical financials, adjusted results 2021 2022 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Including COVID-19 solutions Sales (£m) 5,155 5,838 6,627 7,076 24,696 7,190 6,929 7,829 Operating profit (£m) 1,325 1,641 2,209 1,317 6,492 1,943 2,008 2,605 Earnings
Slide 32: Performance: currency
Performance: currency 2021 currency sales exposure1 2022 adj. operating profit US $ 49% US $: 10 cents movement in the average exchange rate for full- year impacts adj. operating profit by approx. +/- 7.0% Euro € 19% Euro €: 10 cents movement in the average exchange rate for full-year impacts adj. o
Slide 33: Robust capital allocation framework unchanged
Performance: robust capital allocation framework unchanged Strengthened balance sheet supports priorities Research & Development (including BD) Continued investment in innovation and productivity Value creating bolt-on acquisitions and strategic collaborations to strengthen the pipeline SG&A (Commer
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