Slide 1: Q2 2015 results
do more feel better live longer Q2 2015 results 29 July 2015
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: Balanced business, driven by new products and R&D innovation
Balanced business, driven by new products and R&D innovation Three world leading … with new product growth… … and significant further businesses*… potential from the pipeline Positively exposed in more than 150 markets to broad areas of Q2 highlights Q2 sales healthcare demand and growth c.40 NMEs (
Slide 4: Sustained delivery of innovation in 2015
Sustained delivery of innovation in 2015 H1 regulatory progress includes H2 milestones include R&D Event Nucala received Readout of FDA 3rd Nov will FDA AdCom Breo Strimvelis gene Positive CHMP decision on Part A of review data recommendation SUMMIT Phase III FDA approval for therapy filed in decisi
Slide 5: Earnings and returns to shareholders
Earnings and returns to shareholders 2015 earnings guidance and 2016 outlook … and delivery of returns to shareholders reiterated at second quarter 2015 Core EPS 2015 Q2 dividend Expected decline of high teens % * 19p per share declared 2015-2017 Dividends 2016 Core EPS Plan to pay annual ordinary d
Slide 6: Headline results from Q2 and H1
Headline results from Q2 and H1 Core results Q2 2015 Q2 Growth H1 2015 H1 Growth £m £m CER% £% £m CER% £% Turnover 5,888 7 6 11,510 4 3 Core operating profit 1,349 3 (4) 2,654 (6) (10) Core EPS 17.3p - (9) 34.6p (8) (14) Total results Q2 2015 Q2 Growth H1 2015 H1 Growth £m £m CER% £% £m CER% £% Turn
Slide 7: Reported results: Q2 2015 sales and core operating profit margin
Q2 2015 sales and core operating profit margin Sales Core operating profit margin Reported results 2014 Q2 reported sales £5.6bn 2014 Q2 reported OP 25.3% Pharma -6% Currency 1.4% Vaccines +11% 23.9% Consumer +51% COGS 2.6% Assets held for sale SG&A 0.2% 2015 Q2 Sales at 2014 FX £6.0bn +7% R&D 1.8%
Slide 8: Reported results: H1 2015 sales and core operating profit margin
H1 2015 sales and core operating profit margin Sales Core operating profit margin Reported results 2014 H1 reported sales £11.2bn 2014 H1 reported OP 26.3% Pharma -7% Currency 0.7% Vaccines +11% 25.6% Consumer +37% COGS 3.1% Assets held for sale SG&A 0.5% 2015 H1 Sales at 2014 FX £11.6bn +4% R&D 1.1
Slide 9: Restructuring on track
Restructuring on track Total expected benefits from all three programmes ~£3bn Major Change Global Pharma restructuring Novartis synergies Structural savings 2.9 £bn* 2.1 0.9 1.4 0.6 1.0 0.8 0.2 0.5 0.3 0.2 0.9 1.0 1.0 0.6 2014 2015 2016 2017 Incremental saving +0.6 +0.7 +0.8 * Expected phasing of a
Slide 10: Financial efficiency on track
Financial efficiency on track Net finance costs Sustained funding efficiency Profits from associates Not material post reduction of Aspen shares Tax rate No material change due to transaction: Maintain expectation of 20% for 2015 Longer term subject to external environment Minority interest Step
Slide 11: Currency
Currency 2014 currency sales exposure* 2015 core EPS ready reckoner US $ 32 % US $ Euro € 20 % 10 cents movement in average exchange rate for full year impacts EPS by approx. +/- 3% Japanese ¥ 7% Other* 41 % Euro € 10 cents movement in average exchange rate for full year * The other currencies that
Slide 12: Cash generation and net debt
Cash generation and net debt £m 6,831 546 302 2,035 14,377 750 210 1,836 9,553 Net debt Net Underlying Capex Minority Net interest Dividend Legal, Net debt 31/12/2014 disposals & cash flow** restructuring 30/06/2015 acquisitions* & other * Net disposals & acquisitions includes £511m tax payment on t
Slide 13: Thank you
Thank you