Glaxosmithkline Pharmaceuticals Limited · NSE:GLAXO
Glaxosmithkline Pharmaceuticals — Investor Presentation (February 2005)
22 slides from Glaxosmithkline Pharmaceuticals's investor presentation, Feb 15, 2005
Slide 1: Presentation to Analysts
Presentation to Analysts 15th February 2005
Slide 2: GSK India
GSK India
Slide 3: Ranked #1 on corporate image by medical professionals in India
Ranked #1 on corporate image by medical professionals in India Company Rank Glax o SmithKline 1 Ranbaxy 2 Cipla 3 Dr. Reddy’s 4 Pfizer 5 Source : AC Nielsen ORG Marg Corporate Image Study 2003- 2004
Slide 4: Largest prescription generator in India
Largest prescription generator in India 2 out of top 3 are GSK brands Brand Rank Calpol (GSK) * 1 Rantac (JBC) 2 Zantac (GSK) * 3 Nise (DRL) 4 Combiflam (Aventis) 5 Ecosprin (USV) 6 Becosules (PFZ) 7 Folvite (WYT) 8 Aciloc (Cad) 9 Cetzine (Zyrtec) (GSK) * 10 Source : Cmarc Mar-Jun’04
Slide 5: GSK – Best in Class Sales Force
GSK –Best in Class Sales Force s y ear s t 25 o r la h ipf 7.0% ers 120 100 d Lea 6.0% 100 89 5.0% 62 57 73 80 4.0% 6.5% 4.8% 60 3.0% 4.5% 4.4% 3.9% 40 2.0% 20 1.0% 0.0% 0 GSK Co A Co B Co C Co D Market Share% Productivity Index Source: Source: IMS IMS June June MAT MAT 2004 2004
Slide 6: Leadership in major doctor segments
Leadership in major doctor segments Key Specialities GSK Rank General Practioner 1 Consulting Physician 1 Paediatricians 1 Gynaecologists 1 General Surgeons 1 Dermatologists 1 ENT 1 Oncologists 1 Cardiologists 2 Chest Physicians 2 Gastroenterologists 3 Diabetologists 3 Source : Cmarc MarJun’04.Rank
Slide 7: Financial Results 2004
— Financial Results 2004
Slide 8: 2004 Executive Summary
2004 Executive Summary Key Accomplishments • GSK Rx Sales grew at 8.7% (against Mkt growth 6.4%) driven entirely by volumes • “Power” Brands +14% driving topline • Govt enforced price reductions neutralised • Augmentin #1 Brand in the Pharma Market • GSK Vaccines achieved market leadership • CCM mos
Slide 9: Growth in 2004
Growth in 2004 PBT improvement % to Sales Sales YTD 2003 28.1 99 7.7 Gross Margin 63 8.8 + 0.5 Opex 2 0.5 + 2.0 EBIDTA 61 17.7 Int & Dep -19.6 -2 - 0.2 PBT 59 16.5 YTD 2004 30.4 Rs.crs. Growth %
Slide 10: Segmental Performance
Segmental Performance 32.0% 29.9% 30.4% 28.1% 26.8% 27.0% 23.3% 22.4% 21.6% 23.2% 22.0% 19.2% 17.9% 17.0% 12.0% 7.0% 2.0% -3.0% Pharma AFC QFC Exports Overall
Slide 11: Profit & Loss Account
2003 2004 Change Rs. Crs. % to Rs. Crs. % to Rs. Crs. % Sales Profit & Loss Account Sales 1390 Gross Sales 1480 113 Less: Excise Duty 104 1277 100.0 Net Sales 1376 100.0 99 7.7 28 Other Income 24 (4) 30 Interest income 27 (3) 1335 Total Income 1427 555 43.5 Materials 591 43.0 36 6.5 402 31.5 Operati
Slide 12: Cash flow
Cash flow Rs. Crs Cash from Operations 406 Treasury income (Net) 30 Working Capital 12 Capex (net) (8) Exceptional expenses paid (58) Tax Paid (140) Dividend paid (127) Increase in Cash / Investments 115 Excludes sale of Worli property
Slide 13: Strong financial performance
Strong financial performance EPS and Book Value per share 120.0 35.0 30.5 100.0 24.4 30.0 25.0 80.0 17.3 20.0 Book value 60.0 ` 105.8 15.0 EPS 89.6 40.0 77.8 10.0 20.0 5.0 0.0 0.0 2002 2003 2004 25.0% PAT % to Sales Return on Net Worth % 35.0% 20.0% 19.3% 30.0% 18.0% 28.8% 27.2% 15.0% 25.0% 13.4% 22
Slide 14: Trading profit growth – GSK & Biddle Sawyer
Trading profit growth – GSK & Biddle Sawyer 25.9% 28.7% 18.7% 10.2% 2001 2002 2003 2004
Slide 15: Significant Developments
Significant Developments • MRP based Excise Law will impact profits • VAT uncertainty likely to affect Q1 Primary Sales
Slide 16: Chronic Segments driving growth
Chronic Segments driving growth 2000 OAD Cagr = 26% 1600 CVS Cagr = 16% 1200 Index CNS Cagr = 14% 800 Mkt Cagr = 10% 400 0 1991 1993 1995 1997 1999 2001 2003 2004 Source : ORG IMS
Slide 17: Leverage GSK strengths to position as a partner of choice
Leverage GSK strengths to position as a partner of choice • Maximize opportunities through Strong Sales, Marketing & Distribution Access to about 100,000 doctors 300,000 Pharmacies across the country • Track record of successful India specific licensing deals
Slide 18: Track record of Successful partnerships
Track record of Successful partnerships • Farchim-Cetzine (Zyrtec)/ Cetzine LEs • Farchim-Levocetirizine (Vozet) • Fujisawa-Cefspan, Cefizox • Teva-Alpha D 3 • GNC-CCM ( Calcium Citrate Maleate ) • Novartis-Terbenafine (Lamicil) • Organon-Oral Contraceptives • PPI (Close to concluding deal) • Ongoin
Slide 19: GSK has a rich pipeline, patented products to enter only after 2007
GSK has a rich pipeline, patented products to enter only after 2007 Strategy till 2008 based on current business dynamics
Slide 20: Big bets likely launch schedule
Big bets likely launch schedule NCE Filing Year India launch Key Differentiation 572016 2006 2008 1st in Class. Dual m echanism to cut of (Dual kinase inhibitor) blood supply to the tum or 406381 2006 2008 Dual-action for 1st tim e - (Cox 2 inhibitor) Central & Peripheral Alvimopan 2005 2007 1st in
Slide 21: In Summary..
In Summary.. • Post-patent era a gradual but definite opportunity • Market dynamics will change • Portfolio must align to market trends; New skill sets , a new mindset • Exciting prospects in GSK pipeline – after 2007 • In-licensing a key opportunity • GSK ideally placed to maximise India opportunit
Slide 22: Thank You
Thank You
GlaxoSmithKline Pharmaceuticals — Investor Presentation (February 2005) on 6ix