Slide 1: Q3 2024 Results
30 October 2024 Q3 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 Q3 2024 continued momentum and R&D progress Emma Walmsley Performance: growth drivers Luke Miels and Deborah Waterhouse Q3 2024 performance and 2024 guidance Julie Brown Summary and Q&A Emma Walmsley, Luke Miels, Deborah Waterhouse, Julie Brown, Tony Wood and David Redfern 3
Slide 4: Q3 2024 continued momentum and R&D progress
Q3 2024 continued momentum and R&D progress Emma Walmsley, Chief Executive Officer 4
Slide 5: YTD 2024 performance and Q3 2024 performance
YTD 2024 performance Q3 2024 performance Delivered 9%1 YTD sales growth, Sales Core operating profit 19%1 core operating profit growth £8.0bn £2.8bn YTD portfolio performance: • Vaccines 0%1 +2% +5% • Specialty Medicines +20%1 Core EPS Dividend per • General Medicines +7% 49.7p share YTD cash genera
Slide 6: Pipeline delivering momentum across therapy areas
Pipeline delivering momentum across therapy areas Q3 data and regulatory catalysts support portfolio progress Pipeline of 67 vaccines Recent pipeline progress and medicines with • depemokimab: late-breaking phase III data at ERS1: 54% reduction in severe asthma exacerbations; positive phase III in c
Slide 7: Trust: delivering health impact sustainably
Trust: delivering health impact sustainably For health impact, shareholder returns and thriving people Six priority areas to build trust Key highlights Access • ViiV Healthcare committed to make at least two million doses of CAB LA for PrEP1 available for procurement to meet growing demand in low-an
Slide 8: Strong momentum underpins confidence in future profitable growth
Strong momentum underpins confidence in future profitable growth Full-year 2024 guidance1 2021-2026 outlook1 2031 outlook Sales growth Sales CAGR2 2031 sales3 7-9% >7% >£38 billion Core operating profit growth Core operating profit CAGR2 11-13% >11% Core EPS growth Core operating profit margin 10-12
Slide 9: Performance: growth drivers
Performance: growth drivers Luke Miels, Chief Commercial Officer Deborah Waterhouse, CEO, ViiV Healthcare and President, Global Health 9
Slide 10: Specialty Medicines growth led performance as our largest product area
Specialty Medicines growth led performance as our largest product area Group sales +2% in Q3, +9% YTD1 Sales contribution by product area1 Sales contribution by region1 Vaccines Specialty Medicines General Medicines US Europe International 9,000 9000 +16% +2% +16% +2% 8,000 8000 7,000 7000 -15% Sale
Slide 11: Vaccines: -15% in Q3, broadly stable YTD
Vaccines: -15% in Q3, broadly stable YTD1 with strong market shares maintained 2024 guidance: now low single digit decline1 Sales contribution by disease area1 RSV2 (Arexvy) Shingles (Shingrix) • Tightened ACIP3 recommendations • Opportunity for geographic expansion still RSV2 Shingles Meningitis ah
Slide 12: Vaccines: looking ahead
Vaccines: looking ahead PYS1 maintained, innovative pipeline to support future growth Arexvy • Best-in-class data (high efficacy, long duration, strong safety profile) • Revaccination expected over time (not assumed in 2025) • >£3bn PYS1 potential underpinned by revaccination, age cohort expansion a
Slide 13: Specialty: +19% in Q3, +20% YTD
Specialty: +19% in Q3, +20% YTD1, largest product area with new launches ahead 2024 guidance: increased to high-teens % growth1 HIV +12% Sales contribution by disease area1 • Performance driven by continued momentum of LAI2 portfolio HIV Respiratory/Immunology Oncology and strong delivery on Dovato
Slide 14: Oncology
Oncology Strong growth with YTD sales >£1bn Ojjaara +>100% Jemperli quarterly sales • Driven by US volume growth and new launches • US maintains fastest launch uptake (in value) for JAKi1 in US Europe International myelofibrosis • Positive early experience and increased educational efforts 140 suppo
Slide 15: General Medicines: +7% in Q3, +7% YTD
General Medicines: +7% in Q3, +7% YTD 2024 guidance: increased to mid-single digit % growth Respiratory +11%, Other General Medicines 0% Sales contribution by disease area Trelegy +16% Respiratory Other General Medicines • #1 brand in asthma and COPD1 globally2 • Strong growth across all regions ref
Slide 16: HIV: Growing 12% in Q3 2024, with strong performance in long-acting
HIV: Growing 12% in Q3 2024, with strong performance in long-acting 2024 guidance: maintained low-double digit % Positive momentum across LAI1 portfolio Performance driven by continued momentum of LAI1 portfolio and strong delivery on Dovato 400 20% • Q3 2024 global sales of £1.8bn driven by a conti
Slide 17: Q3 2024 performance and 2024 guidance
Q3 2024 performance and 2024 guidance Julie Brown, Chief Financial Officer 17
Slide 18: Q3 YTD revenue growth
Q3 YTD Specialty Medicines contributed >70% of YTD revenue revenue growth growth YTD Revenue excluding COVID-19 solutions, £m +9% Specialty Medicines +5% 23,258 22,102 Vaccines HIV Specialty General YTD 24 FX YTD 24 Medicines Medicines CER AER ex HIV 18
Slide 19: Continued strong momentum in Q3 2024
Continued strong momentum in Q3 2024 Q3 2023 Q3 2024 AER CER Key commentary on CER basis Core results £m £m % % Sales 8,147 8.012 (2) 2 Sales grew +2% Product mix, pricing benefits, and favourable inventory provision Cost of sales (2,073) (1,921) (7) (5) comparator Gross profit 6,074 6,091 - 5 Gross
Slide 20: Q3 2024 core operating margin improved, despite royalty headwind
Q3 2024 core operating margin improved, despite royalty headwind Operating margin, % of sales +100bps 0.0% 1.0% ( 1.8%) 35.0% 1.9% (0.6%) 34.5% 34.0% Q3 23 Margin COGS SG&A R&D Royalties Q3 24 Margin Currency Q3 24 margin at 23 FX at 24 FX Note: Charts may not sum due to rounding 20
Slide 21: 2024 YTD free cash flow of £1.9bn
2024 YTD free cash flow of £1.9bn Cash generated from operations of £5.3bn £m £m 9m 2023 9m 2024 Key drivers of cash flow Core operating profit 7,034 7,717 YTD 2024 Decrease/(Increase) in working capital (2,669) (1,669) Contingent consideration paid (853) (924) • CGFO improved by £0.9bn, mainly due
Slide 22: Capital deployment supports business growth and shareholder returns
Capital deployment supports business growth and shareholder returns -£2.2bn 15.0 0.6 1.8 2.3 £bn 3.7 1.6 12.8 0.9 31 Dec 2023 FCF ex-Capex 1 Capex - PP&E Business Dividends to FX and Haleon stake 30 Sept 2024 2 Net debt development shareholders Other 3 monetisation Net debt Invest for growth Shareho
Slide 23: 2024 Guidance confirmed (excluding COVID)
2024 Guidance confirmed (excluding COVID)1 Expect to deliver broadly around the middle of the existing ranges Sales1 Core operating profit1 7-9% 11-13% Product group sales growth guidance1,2 Vaccines: decline low single digits % Core earnings per share1 10-12% Specialty Medicines: grow high teens %
Slide 24: IR Roadmap 2024 to 2025
IR Roadmap 2024 to 2025 H1 2024 H2 2024 H1 2025 H2 2025 Execution • Full-year 2023 results • Half-year 2024 results • Full-year 2024 results and 2025 • Half-year 2025 results • Guidance 2024 • Q3 2024 results guidance • Q3 2025 results • Q1 2024 results • Q1 2025 results Pipeline1 • Ojjaar
Slide 25: Focused on prevention and changing the course of disease
Focused on prevention and changing the course of disease Ahead Together On track to deliver sales Progress made in Strong momentum and Delivering scale health and profit guidance for strengthening pipeline with improving outlook for impact and attractive 2024 preparations underway for 5 sustained gr
Slide 26: Q&A
Q&A Emma Walmsley Julie Brown Dr Tony Wood Chief Executive Officer Chief Financial Officer Chief Scientific Officer Luke Miels Deborah Waterhouse David Redfern Chief Commercial Officer CEO, ViiV Healthcare and President Corporate President, Global Health, GSK Development 26
Slide 27: Appendix
Appendix 27
Slide 28: 2024 group sales guidance of 7-9% at CER and excl. COVID-19 solutions
2024 group sales guidance of 7-9% at CER and excl. COVID-19 solutions Product group sales guidance Vaccines1 Specialty Medicines1 General Medicines1 Low single digit Increase high- Increase to mid- decline % teens % single-digit % (Previously increase low to mid (Previously increase mid to high (Pre
Slide 29: 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% 7-9% >5% CAGR >7% CAGR - Vaccines +24% -LSD% HSD CAGR LDD CAGR - Specialty +15% HT % DD CAGR DD CAGR - HIV +13% LDD % MSD CAGR 6-8
Slide 30: Q3 Total to Core operating profit reconciliation
Q3 Total to Core operating profit reconciliation Q3 2023 Q3 2024 Key commentary on CER basis Operating profit Operating profit (£m) (£m) Total results 1,949 189 -86% at CER Intangible amortisation 182 415 Intangible impairment 129 17 Major restructuring 110 100 Transaction-related 577 361 Primarily
Slide 31: Improved core profit with +5% growth at CER
Improved core profit with +5% growth at CER Q3 2023 Q3 2024 Key commentary on CER basis £m £m Core operating profit (OP) 2,772 2,761 +5% incl. & excl. COVID-19 solutions Net finance expense (156) (114) Share of associates - (1) Tax (404) (461) Tax rate 15.4% 17.4% Broadly in-line with guidance of 17
Slide 32: Quarterly summary of core results
Quarterly summary of core 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 7,884 8,012 Operating profit (£m) 2,092 2,170 2,772 1,752 8,786 2,443 2,513 2,761 Operating margin 30.1% 30.2% 34.0% 21.8% 29.0% 33.2% 31.9% 34.5% Ea
Slide 33: Currency
Currency 2023 currency sales exposure1 2024 core operating profit Currency sensitivity US $ 52% US $: 10 cents movement in the average exchange rate for full year If exchange rates were to hold at the closing rates impacts core operating profit by approx. +/- 9.0% on 30 September 2024 ($1.34/£1, €1.
Slide 34: Upcoming pipeline catalysts: 2024 and 2025
Infectious disease Infectious diseases Upcoming pipeline catalysts: 2024 and 2025 HIV (ViiV) Respiratory/Immunology Oncology Opportunity driven H2 2024 H1 2025 H2 2025 Regulatory Arexvy: 50-59 YoA1 AIR2 JP MenABCWY vaccine 1st Gen US gepotidacin: EAGLE-1, GC13 US decision 1 2 Shingrix: 18+ YoA AIR C
Slide 35: 67 potential new vaccines and medicines in pipeline: Phase III / Registration
Infectious diseases HIV (ViiV) Respiratory/Immunology 67 potential new vaccines and medicines in pipeline Oncology Opportunity driven Phase III / Registration Arexvy (RSV vaccine) Recombinant protein, adjuvanted* RSV adults (50-59 YoA AIR)^1** 18 gepotidacin (GSK2140944) BTI inhibitor* Uncomplicated
Slide 36: 67 potential new vaccines and medicines in pipeline: Phase II
Infectious diseases HIV (ViiV) Respiratory/Immunology 67 potential new vaccines and medicines in pipeline Oncology Opportunity driven Phase II GSK3437949 Recombinant protein, adjuvanted* Malaria fractional dose 29 GSK4406371 Live, attenuated MMRV new strain GSK3536852 GMMA* Shigella GSK3528869 Viral
Slide 37: 67 potential new vaccines and medicines in pipeline: Phase I
Infectious diseases HIV (ViiV) Respiratory/Immunology 67 potential new vaccines and medicines in pipeline Oncology Opportunity driven Phase I GSK3536867 Bivalent conjugate* Salmonella (typhoid + paratyphoid A) 20 GSK2556286 Mtb cholesterol dependent inhibitor* Tuberculosis GSK3772701 P. falciparum w
Slide 38: Changes since Q2 2024
Infectious disease Infectious diseases HIV (ViiV) Respiratory/Immunology Changes since Q2 2024 Oncology Opportunity driven Changes on pipeline Achieved pipeline catalysts New to Phase I Regulatory decisions GSK4527363: B-cell modulator, Systemic lupus erythematosus Arexvy: RSV adults (50-59 YoA2 AIR
Slide 39: 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 40: 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 41: 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 42: gsk.com
gsk.com