Gsk Plc · LSE:GSK
Gsk — GlaxoSmithKline — FY2005 Earnings Presentation
32 slides from Gsk's earnings presentation, February 2006
Slide 1: GlaxoSmithKline Full Year Results 2005
GlaxoSmithKline Full Year Results 2005 Presentation to the Media JP Garnier Chief Executive Officer
Slide 2: 2005: Excellent year for GSK...
2005: Excellent year for GSK... © Strong financial performance © Dynamic growth from key products © Significant pipeline progress
Slide 3: 2005 Earnings guidance delivered
2005 Earnings guidance delivered Reported Sales £21.7bn RR 8% Profit before tax £6.7bn ® 16% EPS 82.6p A 21% Strong financial performance CER 7% 13% 18%
Slide 4: 2005 Earnings guidance delivered (quarter)
2005 Earnings guidance delivered Quarter 4 Sales Profit before tax EPS Reported A 13% A 21% MAT% Strong financial performance
Slide 5: Very strong cash generation
Very strong cash generation er @ £4.7bn free cash flow (+26%) @ £1.1bn invested in vaccines business @ Net debt decrease £0.7bn ® 2005 dividend 44p (2004: 42p)
Slide 6: 2005: Excellent year for GSK...
2005: Excellent year for GSK... © Strong financial performance © Significant pipeline progress
Slide 7: 2005 sales growth strong in all regions
2005 sales growth strong in all regions; —— of key Pharma sales £18.7bn +8% ace
Slide 8: Slide 8
Slide 9: Strong growth from key pharma products
Strong growth from key pharma products
Slide 10: Strong growth from key pharma products
Slide 11: 2005 - Year of the Vaccine for GSK
Dynamic growth of key products 2005 - Year of the Vaccine for GSK Vaccine sales £1.4bn * 15% (2004: £1.2bn) GSK vaccines strengthened strategically: Dresden Marietta ID Biomedical
Slide 12: Pandemic influenza — the situation to date
Pandemic influenza — the situation to date 2004/5 Virus found ia ‘ in birds Migration season Starts - WHO pandemic alert heightened humans - Vietnam & i Thailand: Turkey bird cull 24 deaths 20 new deaths, >70 worldwide
Slide 13: Pandemic influenza — the situation to date
Pandemic influenza — the situation to date 2004/5 H5N1 Virus Virus found iid J in birds Migration season starts — WHO pandemic ai 15t cases in heightened humans - ietnam ji Thailand: Turkey Bird cull 24 deaths 20 new deaths, >70 worldwide Future Slight mutation Drastic mutation (within H5 family) (U
Slide 14: Producing a pandemic flu vaccine...
Producing a pandemic flu vaccine... @ 1998: prototype vaccine development started @ 2004: H5N1 virus identified @ 2005: works starts on prototype vaccine against H5N1 — Dresden expansion work starts — ID Biomedical acquired — EU “mock up’ file submitted Potential collaboration
Slide 15: Producing a pandemic flu vaccine...
Producing a pandemic flu vaccine... @ 2006: H5N1 pandemic vaccine trials start Q206 — Vaccine in production before end of 2006
Slide 16: In the meantime...
In the meantime... © Less resistance than Tamiflu? © Investing to increase capacity
Slide 17: 2005: Excellent year for GSK...
2005: Excellent year for GSK... © Strong financial performance © Dynamic growth from key products
Slide 18: GSK's pipeline of NCEs and vaccines has increased 76%
GSK’s pipeline of NCEs and vaccines has increased 76% Significant pipeline progress 150 5 111 100 +76% ap | [ij Phase Il/Filed ra [_] Phase I! 63 o 50 [_] Phase | | =i 25 45 29 0 ; 2001 2005
Slide 19: Projects in clinical development
146 Projects in clinical development 150 - 100 - 146 Significant pipeline progress [i Phase IlV/Filed [_] Phase Il [_]Phase! [] Pes
Slide 20: GSK: An industry leader in pipeline...
pipeline progress GSK: An industry leader in pipeline... 8 GSK Hy B74 a 36 3 = 357 — a 54) EU pharma Ava 3 {excluding GSK) 2 + + + + 4 Feb-02 Oct-02 Oct-03 Oct-04 Dec-05
Slide 21: GSK: An industry leader in pipeline...
GSK: An industry leader in pipeline... on progress Peak Sales 2004-10/ Sales 2005 5 rE NPV Pipeline/ R&D Spend EU pharma Ava JES {excluding GSK) AZN w 1 Feb-02 Oct-02 Oct-03 Oct-04 Dec-05 0x 1x nN
Slide 22: GSK: An industry leader in pipeline...
GSK: An industry leader in pipeline... on progress Peak Sales 2004-10/ Sales 2005 5 rE NPV Pipeline/ R&D Spend EU pharma Ava JES {excluding GSK) AZN w 1 Feb-02 Oct-02 Oct-03 Oct-04 Dec-05 0x 1x nN
Slide 23: Rotarix launched in countries...
Rotartx. Launched in 31 countries... ...Europe launch expected Q206
Slide 24: Key product filings
7 Key product filings 2006 Filings pee
Slide 25: Two major new opportunities to fight cancer
Two major new opportunities to fight cancer: “W Cervarix @ Prevention of cervical cancer @ Filing in Europe in March; USA before end 2006
Slide 26: Two major new opportunities to fight cancer
Two major new opportunities to fight cancer: e Lamy Cervarix Tykerb @ Prevention of ASCE" sure cervical cancer ® Breast cancer @ Filing in Europe in March; © Brain metastases USA before end 2006 Plus... @ Renal Cell Cancer @ Head & Neck Cancer
Slide 27: GSK's late-stage pipeline will significantly expand in 2006
GSK’s late-stage pipeline will significantly expand ("| ~~ in 2006: 8 new products entering phase III progress Other Phase Ill New/Entering Phase Ill in ‘06 vaccines LNs RS pazopanib
Slide 28: Dr Tachi Yamada, Dr Moncef Slaoui
Dr Tachi Yamada Dr Moncef Slaoui
Slide 29: Developing World pipeline: 2006 key milestones
Developing World pipeline: 2006 key milestones © Combination treatment (malaria) Ph Ill starts Feb 06 © Mosquirix Ph II trials expansion in 2006 ©@ HIV vaccine candidate Ph | data expected Q306 © TB vaccine candidate Ph Il endemic areas Q406
Slide 30: Positive Partnerships
Positive Partnerships PERSONS OF THE YEAR
Slide 31: 2005 Share price performance reflects increasing confidence in GSK's outlook
2005 Share price performance reflects increasing confidence in GSK’s outlook Positive outlook for GSK 430 GSK Share Price Performance Indexed from Year-end 2004 in GBP 120 5 110 5 hal 90 - 31/12/2004 =. 28/02/2005 30/04/2005 30/06/2005 3108/2005 31/10/2005 31/12/2005
Slide 32: GlaxoSmithKline
GlaxoSmithKline