Slide 1: Full-year and Q4 2023 results
31 January 2024 Full-year and Q4 2023 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: Delivering commitments and upgrading outlooks
Agenda Delivering commitments and upgrading outlooks Emma Walmsley 2023 performance and guidance for 2024 Luke Miels, Deborah Waterhouse and Julie Brown Outlooks for 2026-2031 Emma Walmsley and Julie Brown Q&A Emma Walmsley, Tony Wood, Luke Miels, Deborah Waterhouse, Julie Brown, and David Redfern 3
Slide 4: Delivering commitments and upgrading outlooks
Delivering commitments and upgrading outlooks Emma Walmsley, Chief Executive Officer 4
Slide 5: Significant delivery and improved performance since 2021 commitments
Significant delivery and improved performance since 2021 commitments Sales growth1 Launches since 20211 Vaccines and Specialty1 • 2021: 1% • Arexvy 2023 Sales • 2021: 58% of sales • 2022: 10% • Apretude • 2022: 62% of sales • 2023: 14% • Cabenuva £2.3bn • 2023: 66% of sales • Jemperli • Ojjaara R&D
Slide 6: Strong 2023 performance
Strong 2023 performance Delivered 14%1 sales growth, 16%1 adj. operating profit growth Highlights Profitable growth across portfolio: Sales Adj. operating profit • Vaccines 24%1 £30.3bn, +5% £8.8bn, +12% • Specialty Medicines 15%1 +14% +16% 1 1 • General Medicines 5% New products launched since 2017
Slide 7: Delivering on our commitments and upgrading our outlooks
Delivering on our commitments and upgrading our outlooks 2024 Guidance 2021-2026 New Outlook 2026-2031 New Outlook • Sales growth: 5-7% • >7% Sales CAGR1 • >£38bn sales by 2031 • Adj. OP growth: 7-10% • Adj. EPS growth: 6-9% • >11% Adj. operating profit CAGR1 • Continued focus on margin • >31% Adj.
Slide 8: 2023 performance and guidance for 2024
2023 performance and guidance for 2024 Luke Miels, Chief Commercial Officer Deborah Waterhouse, CEO, ViiV Healthcare and President, Global Health 8
Slide 9: Strong growth in 2023 for all product areas and regions
Strong growth in 2023 for all product areas and regions Sales contribution by product area1 Sales contributions by region1 Vaccines Specialty Medicines General Medicines US Europe International 35,000 35,000 +14% +14% 30,000 30,000 +10% +10% 25,000 +24% 25,000 Sales (£m) Sales (£m) +16% 20,000 20,00
Slide 10: Vaccines: +24% with outstanding Arexvy launch
Vaccines: +24%1 with outstanding Arexvy launch Further progress expected for mRNA2, MAPS3, HSV, MenABCWY and Arexvy in 2024 RSV (Arexvy) £1,238m4 Sales contribution by disease area1 • 11% of 60+ population in US vaccinated against RSV; 68% vaccinated with Arexvy RSV Shingles Meningitis Influenza Est
Slide 11: Arexvy launch dynamics
Arexvy launch dynamics Success in 2023, continued growth in 2024 Weekly TRx since launch3 Total prescriptions (millions) 8.0 US sets up success for global expansion 6.0 • 94.6% efficacy in comorbid population resonating well 4.0 • ~2/3 of healthcare professionals prefer Arexvy1 2.0 • Strong position
Slide 12: Specialty: +15% with double-digit growth in all product areas
Specialty: +15%1 with double-digit growth in all product areas Depemokimab and Nucala COPD2 data in 2024 HIV +13% Sales contribution by disease area1 • 2023 growth driven by oral two-drug regimen and long-acting portfolio HIV Respiratory/Immunology Oncology Respiratory/Immunology +18% • Nucala +18%:
Slide 13: General Medicines: +5% driven by Trelegy in respiratory
General Medicines: +5% driven by Trelegy in respiratory Respiratory +6% Sales contribution by disease area • Trelegy +29%: Top-selling brand in asthma and COPD1 market worldwide; delivering >£2bn in 2023 Respiratory Other General Medicines 2,500 2,000 Sales (£m)2 1,500 1,000 12,000 500 +1% +5% 0 10,
Slide 14: HIV: 13% growth driven by oral 2DR and long-acting portfolio
HIV: 13% growth in 2023 driven by oral two-drug regimen (2DR) and long-acting (LA) portfolio Strong execution across portfolio Growth driven by oral 2DR and LA injectables 1,200 60% 53% 55% 51% • FY 2023 sales of £6.4bn driven by oral 2DR and LA HIV Innovation sales as a % of total HIV sales 1,000 4
Slide 15: 2023 performance and guidance for 2024
2023 performance and guidance for 2024 Julie Brown, Chief Financial Officer 15
Slide 16: Delivered a step-change in financial performance in 2023
Delivered a step-change in financial performance in 2023 2022 2023 AER CER Key commentary on CER basis Adjusted results £m £m % % Sales grew +14% (excl. COVID-19 solutions) with strong growth in Sales 29,324 30,328 3 5 Vaccines (Arexvy and Shingrix) and HIV Cost of sales (8,741) (7,716) (12) (11) Be
Slide 17: Improved 2023 adjusted operating margin
Improved 2023 adjusted operating margin Excluding COVID-19 solutions +60 bps CER Including COVID-19 solutions +180 bps CER Margin benefits driven by improved productivity Margin benefit driven by decline in lower margin and increased royalties Xevudy and increased royalties +60bps +180bps 1 29.1% 1.
Slide 18: 2023 free cash flow of £3.4bn
2023 free cash flow of £3.4bn Cash generated from operations of £8.1bn £m £m 2022 2023 Key drivers of cash flow Adj. operating profit 8,151 8,786 Full year Decrease/(Increase) in working Cash generated from operations increased despite annualising the 67 (1,233) capital Gilead Science, inc settlemen
Slide 19: Capital deployment supports business growth and shareholder returns
Capital deployment supports business growth and shareholder returns -£2.2bn 17.2 0.7 2.2 1.8 15.0 £bn 5.7 2.5 1.3 2022 FCF ex-Capex 1 Capex - PP&E Targeted BD 2 Dividends to Other 3 Haleon stake 2023 Net debt shareholders monetisation Net debt Invest for growth Shareholder distributions 1. Free Cash
Slide 20: 2024 guidance at CER (excl. COVID-19 solutions)
2024 guidance at CER (excl. COVID-19 solutions) 2024 modelling considerations Sales Guidance • Vaccines: high single- to low double-digit % increase • Specialty Medicines 1: low double-digit % increase • HIV: high single- to low double-digit % increase Sales: 5% to 7% growth • General Medicines: mid
Slide 21: Outlooks for 2026-2031
Outlooks for 2026-2031 Emma Walmsley, Chief Executive Officer Julie Brown, Chief Financial Officer 21
Slide 22: Delivering profitable growth 2026-2031
Delivering profitable growth 2026-2031 Build from existing strong performance momentum Marketed Growth Drivers ≥£2bn PYS 1 Arexvy Cabenuva/Apretude Innovation-led growth Shingrix Nucala Meningococcal vaccines2 Benlysta Oncology3 • Significant growth portfolio with increasing sales from Vaccines and
Slide 23: 2031 sales outlook: high potential and attractive risk profile
2031 sales outlook: high potential and attractive risk profile Early-stage pipeline + targeted BD Sales Non risk adjusted Vaccines Pipeline opportunity • 2031 sales outlook of >£38bn provided on risk Sales risk adjusted basis adjusted Infectious Diseases > £38bn HIV • More than 90% of sales supporti
Slide 24: Significant future pipeline value unlocks in 2024-2026
Significant future pipeline value "unlocks" in 2024-2026 Scale opportunities in all core product areas Launch year and NRA PYS1 potential of major launches 2026-31 Vaccines Specialty Medicines General Medicines 2025+ 2027+ MAPs - 2026+ HIV Q4M ULA 2026 camlipixant - 2025+ Anti-infectives2 MenABCWY/
Slide 25: Sustained focus on operating margin improvement
Sustained focus on operating margin improvement 2021 – 2026 2026 – 2031 >240 bps >31% Continued focus on margin improvement, +290 bps with broadly stable OP margin through 28.6% dolutegravir loss of exclusivity (2028-2030)1 25.6% Key drivers 2021 2023 2026 • HIV portfolio transition (~40% of HIV bus
Slide 26: Capital allocation framework to support investment and returns
Capital allocation framework to support investment and returns Priority is to invest for growth, coupled with attractive shareholder returns Sustainable, profitable growth and cash generation 1 2 Invest for growth Shareholder distributions +17% +8% BD) Pipeline (organic and targeted Progressive divi
Slide 27: 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 28: 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 Strong momentum and the immune system and new Vaccines and the health of millions of improving outlook for use of new platform and Specialty Medicines, for
Slide 29: 29
29
Slide 30: Appendix
Appendix 30
Slide 31: 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% >5% CAGR >7% CAGR - Vaccines +24% HSD – LDD HSD CAGR LDD CAGR - Specialty +15% LDD DD CAGR DD CAGR - HIV +13% HSD – LDD MSD CA
Slide 32: 2023 Total to adjusted operating profit reconciliation
2023 Total to adjusted operating profit reconciliation 2022 2023 Key commentary on CER basis Operating profit Operating profit (£m) (£m) Total results 6,431 6,745 +10% at CER Intangible amortisation 739 719 Intangible impairment 296 398 Major restructuring 321 382 ~£1.1bn benefits to date1 Transacti
Slide 33: Improved adj. earnings per share with +16% growth at CER
Improved adj. earnings per share with +16% growth at CER 2022 2023 Key commentary on CER basis £m £m Adj. operating profit (OP) 8,151 8,786 +12% incl. COVID; +16% excl. COVID-19 solutions Net finance expense (791) (669) Lower bond interest costs and higher interest income Share of associates (2) (5)
Slide 34: Quarterly summary of results
Quarterly summary of results 2022 2023 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Including COVID-19 solutions Sales (£m) 7,190 6,929 7,829 7,376 29,324 6,951 7,178 8,147 8,052 30,328 Operating profit (£m) 1,943 2,008 2,605 1,595 8,151 2,092 2,170 2,772 1,752 8,786 Operating margin 27.0% 29.0% 33.3% 21.6% 27.8%
Slide 35: Currency
Currency 2023 currency sales exposure 1 2024 adj. operating profit 3 US $ 52% US $: 10 cents movement in the average exchange rate for full year impacts adj. operating profit by approx. +/- 9.0% Euro € 19% Euro €: 10 cents movement in the average exchange rate for full year impacts adj. operating pr
Slide 36: Investor roadmap highlights progress of key events
Investor roadmap highlights progress of key events Q2 2023 Q3 2023 Q4 2023 H1 2024 H2 2024 Execution • Q2 and Half-year • Q3 and Year-to-date • Full-year and Q4 2023 • Q1 2024 results • Q3 and Year-to-date 2024 results 2023 results 2023 results results • Q2 and Half-year 2024 results • Full-year and
Slide 37: 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 Ojjaara/Omjjara: MOMENTUM, myelofibrosis JP Arexvy: 50-59 YoA10 US, EU, JP gepotidacin: EAGLE-2/3, uUTI11 US decision Nucala: CRSwNP1 JP gepoti
Slide 38: 12 major planned launches
Infectious diseases 12 major planned launches HIV (ViiV) Respiratory/Immunology Oncology Opportunity driven MenABCWY mRNA influenza Anti-infectives (gepotidacin, tebipenem and Brexafemme) MAPs 24v/30+v TH HSV (herpes simplex virus) bepirovirsen HIV PrEP HIV treatment depemokimab camlipixant Jemperli
Slide 39: 71 potential new vaccines and medicines in pipeline: Phase III
Infectious diseases HIV (ViiV) 71 potential new vaccines and medicines in pipeline Respiratory/Immunology Oncology Opportunity driven Phase III / Registration – 18 assets Arexvy (RSV vaccine) Recombinant protein, adjuvanted* RSV older adults (50-59 YoA)^ gepotidacin (2140944) BTI inhibitor* Uncompli
Slide 40: 71 potential new vaccines and medicines in pipeline: Phase II
Infectious diseases HIV (ViiV) 71 potential new vaccines and medicines in pipeline Respiratory/Immunology Oncology Opportunity driven Phase II – 30 assets 3437949 Recombinant protein, adjuvanted* Malaria fractional dose 4406371 Live, attenuated MMRV new strain 3536852 GMMA* Shigella 3528869 Viral ve
Slide 41: 71 potential new vaccines and medicines in pipeline: Phase I
Infectious diseases HIV (ViiV) 71 potential new vaccines and medicines in pipeline Respiratory/Immunology Oncology Opportunity driven Phase I – 23 assets 3536867 Bivalent conjugate* Salmonella (typhoid + paratyphoid A) 2556286 Mtb cholesterol dependent inhibitor* Tuberculosis 7 3186899 CRK-12 inhibi
Slide 42: Changes since Q3 2023
Infectious diseases HIV (ViiV) Changes since Q3 2023 Respiratory/Immunology Oncology Opportunity driven Changes on pipeline Achieved pipeline catalysts New to Phase I Regulatory decisions 4024484 – P. falciparum whole cell inhibitor, malaria Nucala – severe asthma CN 3862995 – Anti-IL33 antibody, CO
Slide 43: 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 AUC Area under curve
Slide 44: Assumptions and basis of preparation related to 2024 guidance and outlooks
Assumptions and basis of preparation related to 2024 guidance, 2021-26 and 2031 outlooks In outlining the guidance for 2024 and outlooks for the period 2021-2026 and for 2031, the Group has made certain assumptions about the macro-economic environment, the healthcare sector (including regarding exis
Slide 45: 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 46: gsk.com
gsk.com