Slide 1: Q1 2024 Results
1 May 2024 Q1 2024 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
Agenda Strong start to 2024 Emma Walmsley Performance: growth drivers Luke Miels and Deborah Waterhouse Q1 2024 performance and 2024 guidance Julie Brown Q&A Emma Walmsley, Tony Wood, Luke Miels, Deborah Waterhouse, Julie Brown, and David Redfern 3
Slide 4: Strong start to 2024 with continued pipeline progress
Strong start to 2024 with continued pipeline progress Emma Walmsley, Chief Executive Officer 4
Slide 5: Strong start to 2024 Q1 2024 performance
Strong start to 2024 Q1 2024 performance Delivered 13%1 sales growth, Sales Core operating profit 35%1 core operating profit growth £7.4bn, +10% £2.4bn, +27% +13% +35% 1 1 Sales growth across portfolio: • Vaccines +22%1 • Specialty Medicines +19%1 Core EPS Dividend per • General Medicines +1% 43.1p,
Slide 6: Strong pipeline progress
Strong pipeline progress R&D priorities focused across four therapy areas Infectious Respiratory/ HIV Oncology Diseases Immunology • gepotidacin: positive EAGLE-1 • Cabenuva: positive LATITUDE phase Aiolos Bio acquisition completed • Jemperli RUBY Part 1 & Part 2 phase III data III data; data presen
Slide 7: Delivering health impact sustainably
Delivering health impact sustainably For health impact, shareholder returns and thriving people Six priority areas to build trust Key highlights Access • Announced $35 per month cap on eligible US patient out-of-pocket costs for entire portfolio of asthma and COPD inhalers. • Announced resourcing of
Slide 8: Performance: growth drivers
Performance: growth drivers Luke Miels, Chief Commercial Officer Deborah Waterhouse, CEO, ViiV Healthcare and President, Global Health 8
Slide 9: Strong start to 2024 with growth in all product areas and regions
Strong start to 2024 with growth in all product areas and regions Sales contribution by product area1 Sales contribution by region1 Vaccines Specialty Medicines General Medicines US Europe International 8,000 8,000 +13% +13% 7,000 +10% 7,000 +10% 6,000 +22% 6,000 +14% Sales (£m) Sales (£m) 5,000 5,0
Slide 10: Vaccines: +22% led by Arexvy and record sales of Shingrix
Vaccines: +22%1 led by Arexvy and record sales of Shingrix 2024 guidance: high-single digit to low-double digit % growth1 RSV (Arexvy) £182m2 Sales contribution by disease area1 • Leading market share with 2/3 retail prescriptions RSV Shingles Meningitis Established vaccines Shingles (Shingrix) +18%
Slide 11: Arexvy performance
Arexvy performance >1.3m people vaccinated with Arexvy in Q1 20241, >7m people since launch International rollout Weekly TRx since launch1 • 68% market share in retail at the end of Q1 20241 • Majority of 2024 sales to be in the US, weighted to H2 450 100% • Launched in 24 markets to date 400 90% 80
Slide 12: Specialty Medicines: +19% with strong growth in all therapy areas
Specialty Medicines: +19%1 with strong growth in all therapy areas 2024 guidance: low-double digit % growth1 HIV +14% Sales contribution by disease area1 • Momentum in long-acting innovation HIV Respiratory/Immunology Oncology Respiratory/Immunology +11% • Nucala +13% reflecting high patient demand
Slide 13: Progress in oncology driven by Ojjaara launch and lifecycle innovation
Progress in oncology driven by Ojjaara launch and lifecycle innovation Ojjaara: fastest US launch uptake in value for a JAKi1 in MF2 Jemperli: a potential backbone IO8 therapy • Driven by strong execution • 1L4 dMMR9 EC10 new patient share up to ~33%11, nearly doubled vs Q4 202312 • US share in pati
Slide 14: General Medicines: +1% driven by Trelegy and EP in Emerging Markets
General Medicines: +1% driven by Trelegy and EP1 in Emerging Markets 2024 guidance: mid-single digit % decrease Respiratory +2% Sales contribution by disease area • Trelegy +33%: most prescribed SITT2 worldwide3, helping ~9.6 million patients since launch4 Respiratory Other General Medicines 2,500 2
Slide 15: HIV: Growing 14% in Q1 2024, with momentum in long-acting innovation
HIV: Growing 14% in Q1 2024, with momentum in long-acting (LA) innovation Positive momentum across LA portfolio Performance driven by continued momentum of LA portfolio and strong 400 17% 18% delivery on Dovato 16% HIV Long Acting sales as a % of total HIV 350 16% 13% 13% 14% • Q1 2024 global sales
Slide 16: Q1 2024 performance and 2024 guidance
Q1 2024 performance and 2024 guidance Julie Brown, Chief Financial Officer 16
Slide 17: Strong start to 2024
Strong start to 2024 Q1 2023 Q1 2024 AER CER Key commentary on CER basis Core results £m £m % % Sales 6,951 7,363 6 10 Sales grew +13% (excl. COVID-19 solutions) Cost of sales (1,752) (1,733) (1) - Mix benefits Gross profit 5,199 5,630 8 14 Gross profit margin 74.8% 76.5% +170 bps +250 bps Improved
Slide 18: Q1 2024 core operating margin significantly higher
Q1 2024 core operating margin significantly higher Excluding COVID-19 solutions +580 bps CER Including COVID-19 solutions +460 bps CER Margin benefits driven by SG&A and gross margin Margin benefits driven by SG&A and gross margin +460bps +580bps 0.6% 0.2% 0.7% 34.7% 0.6% 34.7% 1.5% 3.3% 33.2% 1.5%
Slide 19: Q1 2024 free cash flow of £0.3bn
Q1 2024 free cash flow of £0.3bn Cash generated from operations of £1.1bn £m £m Q1 2023 Q1 2024 Key drivers of cash flow Core operating profit 2,092 2,443 Q1 2024 £0.8bn increase in cash generated from operations, mainly Decrease/(Increase) in working capital (840) (311) driven by: Contingent consid
Slide 20: Capital deployment supports business growth and shareholder returns
Capital deployment supports business growth and shareholder returns -£0bn 0.1 0.6 1.0 £bn 15.0 15.0 1.0 0.8 0.2 31 Dec 2023 FCF ex-Capex 1 Capex - PP&E Business 2 Dividends to Other 3 Haleon stake 31 Mar 2024 Net debt development shareholders monetisation Net debt Invest for growth Shareholder distr
Slide 21: 2024 guidance at CER and excl. COVID-19 solutions
2024 guidance at CER and excl. COVID-19 solutions Upgraded guidance Sales1 Core operating profit1 Core earnings per share1 5-7% Towards upper part of range 9-11% (Previously 7-10%) 8-10% (Previously 6-9%) (Previously 5-7%) Modelling considerations • Sales growth benefits from new product launches, w
Slide 22: IR Roadmap 2024 to 2025
IR Roadmap 2024 to 2025 H1 2024 H2 2024* 2025 Execution • Full year 2023 results • Half-year 2024 results • Full-year 2024 results • Guidance 2024 • Q3 2024 results • Guidance 2025 • Q1 2024 results • Q1 2025 results • Half-year 2025 results • Q3 2025 results Pipeline • Ojjaara/Omjjara: • Arexvy, RS
Slide 23: Focused on prevention and changing the course of disease
Focused on prevention and changing the course of disease Ahead Together R&D based on science of Leaders in development of Products that improve the Strong momentum and the immune system and new Vaccines and health of millions of improving outlook for use of new platform and Specialty Medicines, for
Slide 24: Q&A
Q&A 24
Slide 25: Appendix
Appendix 25
Slide 26: 2024 full year outlook considerations to support modelling
2024 full year outlook considerations to support modelling 2023 growth 2021 – 2026 2021 – 2026 2024 Guidance 2024 Assumptions excl. Covid BIU 2021 BIU 2024 Turnover +14% 5-7% Towards upper part of the range >5% CAGR >7% CAGR - Vaccines +24% HSD – LDD HSD CAGR LDD CAGR - Specialty +15% LDD DD CAGR DD
Slide 27: Q1 Total to Core operating profit reconciliation
Q1 Total to Core operating profit reconciliation Q1 2023 Q1 2024 Key commentary on CER basis Operating profit Operating profit (£m) (£m) Total results 2,082 1,490 -18% at CER Intangible amortisation 169 196 Intangible impairment 16 54 Major restructuring 108 57 ~£1.1bn benefits to date1 Transaction-
Slide 28: Improved core earnings per share with +28% growth at CER
Improved core earnings per share with +28% growth at CER Q1 2023 Q1 2024 Key commentary on CER basis £m £m Core operating profit (OP) 2,092 2,443 +27% incl. COVID; +35% excl. COVID-19 solutions Net finance expense (170) (132) Lower bond interest costs and higher interest income Share of associates (
Slide 29: Quarterly summary of results
Quarterly summary of results 2023 2024 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Including COVID-19 solutions Sales (£m) 6,951 7,178 8,147 8,052 30,328 7,363 Operating profit (£m) 2,092 2,170 2,772 1,752 8,786 2,443 Operating margin 30.1% 30.2% 34.0% 21.8% 29.0% 33.2% Earnings per share (pence) post-share 37.0
Slide 30: Currency
Currency 2023 currency sales exposure1 2024 core operating profit3 US $ 52% US $: 10 cents movement in the average exchange rate for full year impacts core operating profit by approx. +/- 9.0% Euro € 19% Euro €: 10 cents movement in the average exchange rate for full year impacts core operating prof
Slide 31: Upcoming pipeline catalysts: 2024 and 2025
Infectious diseases Upcoming pipeline catalysts: 2024 and 2025 HIV (ViiV) Respiratory/Immunology Oncology Opportunity driven H1 2024 H2 2024 2025 Regulatory Arexvy: 50-59 YoA1 US Arexvy: 50-59 YoA1 EU, JP gepotidacin: EAGLE-2/3, uUTI6 US decision Omjjara: myelofibrosis JP Nucala: CRSwNP 2 JP gepotid
Slide 32: 72 potential new vaccines and medicines in pipeline: Phase III / Registration
Infectious diseases HIV (ViiV) Respiratory/Immunology 72 potential new vaccines and medicines in pipeline Oncology Opportunity driven Phase III / Registration – 18 assets Arexvy (RSV vaccine) Recombinant protein, adjuvanted* RSV older adults (50-59 YoA)^ gepotidacin (GSK2140944) BTI inhibitor* Uncom
Slide 33: 72 potential new vaccines and medicines in pipeline: Phase II
Infectious diseases HIV (ViiV) Respiratory/Immunology 72 potential new vaccines and medicines in pipeline Oncology Opportunity driven Phase II – 33 assets GSK3437949 Recombinant protein, adjuvanted* Malaria fractional dose GSK4406371 Live, attenuated MMRV new strain GSK3536852 GMMA* Shigella GSK3528
Slide 34: 72 potential new vaccines and medicines in pipeline: Phase I
Infectious diseases HIV (ViiV) Respiratory/Immunology 72 potential new vaccines and medicines in pipeline Oncology Opportunity driven Phase I – 21 assets GSK3536867 Bivalent conjugate* Salmonella (typhoid + paratyphoid A) GSK2556286 Mtb cholesterol dependent inhibitor* Tuberculosis GSK3494245 Protea
Slide 35: Changes since Q4 2023
Infectious diseases HIV (ViiV) Respiratory/Immunology Changes since Q4 2023 Oncology Opportunity driven Changes on pipeline Achieved pipeline catalysts New to Phase I Regulatory submission acceptances GSK5764227: ADC targeting B7-H3, solid tumors Arexvy: 50-59 YoA submission US Men ABCWY vaccine 1st
Slide 36: Glossary
Glossary ADC Antibody drug conjugate EGPA Eosinophilic granulomatosis with polyangiitis NSCLC Non-small cell lung cancer AE Adverse event FVC Forced vital capacity OMV Outer membrane vesicle AESI Adverse event of special interest GC Urogenital gonorrhea ORR Overall response rate AIR At increased ris
Slide 37: Assumptions and basis of preparation related to 2024 guidance
Assumptions and basis of preparation related to 2024 guidance In outlining the guidance for 2024, the Group has made certain assumptions about the healthcare sector (including regarding possible governmental legislative and regulatory reform), the different markets and competitive landscape in which
Slide 38: Use of GSK conference call, webcast and presentation slides
Use of GSK conference call, webcast and presentation slides The GSK plc webcast, conference call and presentation slides (together the ‘GSK materials’) are for your personal, non-commercial use only. You may not copy, reproduce, republish, post, broadcast, transmit, make available to the public, sel
Slide 39: gsk.com
gsk.com