Gsk Plc · LSE:GSK
Gsk — GlaxoSmithKline — Q1 2003 Earnings Presentation
22 slides from Gsk's earnings presentation, Apr 30, 2003
Slide 1: First Quarter Results 2003
First Quarter Results 2003 Presentation to Investors/Analysts 30th April 2003
Slide 2: CEO's Remarks
CEO’s Remarks JP Garnier Chief Executive Officer
Slide 3: Financial Results
Financial Results John Coombe Chief Financial Officer
Slide 4: Business Performance Results
Business Performance Results 1Q03 1Q02 % change £m £m CER Reported Sales 5,222 5,110 8 2 - Pharma Sales 4,466 4,361 9 2 Trading profit 1,807 1,615 23 12 Other operating expense (20) (5) Net interest expense (35) (34) Profit before tax 1,774 1,593 22 11 Tax rate 27.0% 27.0% Earnings 1,271 1,134 23 12
Slide 5: £/$ exchange rate
US $ Trends 1.70 1.65 2002 2003 1.60 £/$ exchange rate 1.55 1.50 1.45 1.40 1.35 1.30 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Slide 6: Performance by Operating Division
Performance by Operating Division 1Q03 1Q02 Growth £m £m CER % Sales Pharmaceuticals 4,466 4,361 9 Consumer Healthcare 756 749 6 Trading Profit Pharmaceuticals 1,700 1,521 23 Consumer Healthcare 107 94 23
Slide 7: Trading Profit Analysis
Trading Profit Analysis Q103 Q102 % change £m £m CER £ Sales 5,222 5,110 8 2 Cost of Goods (1,019) (1,075) 4 5 19.5% 21.0% Gross Profit 4,203 4,035 11 4 80.5% 79.0% % In Italics are % of Sales
Slide 8: Trading Profit Analysis
Trading Profit Analysis Q103 Q102 % change £m £m CER £ Sales 5,222 5,110 8 2 Cost of Goods (1,019) (1,075) 4 5 19.5% 21.0% SG&A (1,766) (1,770) (5) 0 33.8% 34.7% R&D (630) (650) (1) 3 12.1% 12.7% Trading Profit 1,807 1,615 23 12 34.6% 31.6% % In Italics are % of Sales
Slide 9: The Cash Flow Continues
The Cash Flow Continues……... 1Q 03/£m 1Q 02/£m Net Operating Cash Flow 1,663 1,449 Interest (99) (107) Taxation (490) (209) Capital Expenditure (153) (176) Dividends (527) (545) Purchase of Own Shares (241) (504) Other 131 (28) Decrease/(Increase) in Net Debt 284 (120) 31 Mar 03 31 Dec 02 Net Debt (
Slide 10: Pharmaceutical Sales
Pharmaceutical Sales David Stout President Pharmaceutical Operations
Slide 11: Pharmaceuticals - Sales by Region
Pharmaceuticals - Sales by Region £0.9bn (+9%) % share USA 53 £2.4bn Europe 28 (+12%) £1.2bn International 19 (+1%) Total Pharma Sales £4.5bn +9% Note: CER % growth - three months ended 31st March 2003
Slide 12: Broad Portfolio Drives Strong Growth
Broad Portfolio Drives Strong Growth Other £286m (-12%) Oncology & CV Respiratory £420m (+21%) £1.1bn (+19%) Vaccines £264m (+9%) Metabolic £270m (+21%) CNS £1.1bn (+19%) Anti-Bacterials Anti-Bacterials £467m (-25%) Total Pharma Sales Anti Virals £571m (+9%) £4.5bn +9% Note:% change is at constant e
Slide 13: GSK's No.1 Product
Seretide/Advair - £514m +48% Value Share of Global R3 Market 20 18 16 14 GSK’s 12 % 10 No.1 8 6 Product 4 2 0 1998 1999 2000 2001 2002 Seretide Singulair Symbicort Source: IMS Value Share (£000’s) of Global R3 Market MAT December 02
Slide 14: Mean Change in Albuterol Use (Puffs/day)
January Advair 100/50 vs. FP 250 2003* Inhaled Steroid Sparing Study Weeks 0 2 4 6 8 10 12 14 16 18 20 22 24 EP 0 Mean Change in Albuterol Use (Puffs/day) • Despite 60% reduction -0.1 in ICS dose: -0.2 – Asthma stability maintained -0.3 – Sustained reductions in albuterol use -0.4 -0.5 Advair100 FP2
Slide 15: US NRx Market Share %
Avandia Franchise - £226m +28% US Market Share of Oral Anti-Diabetic Market 10 9 US NRx Market Share % 8 7 6 5 Q102 Q103 Source: Scott Levin OAD Monthly NRx Market Share March 03
Slide 16: Change in FPG (mg/dL)
NEW Data Avandia + Metformin v High Dose Metformin Change in FPG 0 -5 Change in FPG (mg/dL) -10 -15 • Significantly more patients -20 -25 -19.9 -30 achieve HbA1c of < 7% -35 (ADA goal) with -40 -38.5 -45 Avandia/met* MET 2g RSG 8mg +MET 1g † 0.0 Change in HbA1c • Significantly fewer GI -0.1 Change i
Slide 17: Q103: Positive News for 3 Key Growth Drivers
Q103: Positive News for 3 Key Growth Drivers Approval to treat patients Post MI 4 Approval for suppression of recurrent genital herpes in HIV 4 patients New paediatric indication approved. Approvable for bipolar; 4 approval expected next few months
Slide 18: Continued Share Gains
Continued Share Gains 45% Weekly US Market Share of Generic & Branded Augmentin Market 40% 35% Augmentin ES & XR 3 0 %nchise 30% >entin fraES & XR m to 25% Aug tched swi 20% 15% Augmentin IR 10% 5% 0% 002 /2002 /2002 /2002 /2002 /2002 /2003 /2003 /2003 /2003 /2003 /2003 /2003 /2003 /10/2 10 11 11 12
Slide 19: Paxil NRx: % share converted to Paxil CR
Paxil NRx: % share converted to Paxil CR 0% 5% 10% 15% 20% 25% 30% 35% 19- Apr -02 10-M ay-0 2 31-M ay-0 2 21- Jun -02 12- Jul -02 02- Aug -02 23- Aug -02 13- Sep -02 Source: Scott Levin Paxil NRx Share (converted to Paxil CR) 04- Oct -02 25- Oct -02 15- Nov -02 06- Dec -02 27- Dec -02 17- Jan -03 0
Slide 20: Europe Launched March, US Launch H203
• Europe Launched March • US Launch H203
Slide 21: Launch H203
First & only once- daily antidepressant Launch with a low incidence ON TRACK H203 of sexual dysfunction and weight gain
Slide 22: GlaxoSmithKline
osk GlaxoSmithKline