Slide 1: Emma Walmsley, CEO
do more feel better live longer Emma Walmsley, CEO
Slide 2: Agenda
Agenda Q2 2018 progress Emma Walmsley, (15 mins) Chief Executive Officer Q2 2018 financial results Simon Dingemans, (15 mins) Chief Financial Officer Q&A (30 mins) Break (15 mins) Dr Hal Barron R&D update Chief Scientific Officer and (60 mins) President R&D Q&A (60 mins) Informal reception 2
Slide 3: Q&A panel
Q&A panel David Redfern Luke Miels Brian McNamara Luc Debruyne Chief Strategy Officer, President, Global CEO, GSK Consumer President – Global Chairman of ViiV Pharmaceuticals Healthcare Vaccines Axel Hoos Kim Smith Gijs van den Brink Emmanuel Hanon Oncology Therapy Global Research and Immunoinflamma
Slide 4: Long-term priorities for all businesses
3 long-term priorities for all 3 businesses Innovation Performance Trust Culture 4
Slide 5: CER Sales growth in all businesses; improved Group operating margin
CER Sales growth in all 3 businesses; improved Group operating margin Pharmaceuticals Group sales growth +1% New Respiratory products +37%* of +4% HIV sales +11%; dolutegravir +18% 80bp improvement in Group Adjusted operating margin Vaccines Shingrix reported sales of £167 million +16% US vaccines s
Slide 6: Respiratory: successfully transitioning to new portfolio
Respiratory: successfully transitioning to new portfolio Strong Trelegy launch reflects Nucala building momentum New Respiratory products commercial prioritisation in a growing market continue to perform Increased investment Q2 Sales £m in the market +37%* Strong uptake in Europe COLUMBA long term s
Slide 7: Portfolio performance on track with GEMINI studies building confidence in 2DR outlook
Portfolio performance on track with GEMINI studies building confidence in 2DR outlook Dolutegravir maintaining leadership position Non inferior virologic outcomes and in STR/Core Agent market no emergent resistance seen Weekly TRx Shares by Product (STR+Core agent) GEMINI studies demonstrate non-inf
Slide 8: Shingrix: continued strong demand
Shingrix: continued strong demand Demand significantly higher than 2017 Building a new standard of prevention Weekly Shingrix TRx volume vs 2017 competitor Recommendations driving market demand (weekly pharmacy administered doses) 99% of known US market share1 160,000 140,000 ‘Strong’ recommendation
Slide 9: Driving our growth outlook beyond 2020
Driving our growth outlook beyond 2020 2021-2026 ‘091 (TLR4) – 44‘756 (CXCR2) 2018-2020 ‘165 (aGM-CSF) ’254 (HIV MI) ‘762 (BET inhibitor) ‘794 (NY ESO-1) Continuing ‘404/’836 (HBV) ‘847 (IL33R) ‘557 (PI3Kd) ‘863 (HIF-PHI) growth drivers Shingrix Trelegy ‘595 (PRMT5 inhibitor) ‘944 (topoisomerase Jul
Slide 10: Capital allocation framework
Capital allocation framework Key priorities for capital Invest 1. Pharma pipeline including BD Innovation in the 2. Consumer Put (buy out completed June 2018) business 3. Vaccines capacity Improved 80p per share expected for 2018 Performance cash Shareholder Focus on rebuilding free cash flow cover
Slide 11: Funding future growth
Funding future growth Delivering growth Investing in Improved our business operating leverage Stronger Financial cash generation efficiencies 11