Gsk Plc · LSE:GSK
Gsk — Investor Day (May 2015)
13 slides from Gsk's investor day presentation, May 6, 2015
Slide 1: Financial outlook and guidance
Simon Dingemans Financial outlook and guidance 6 May 2015
Slide 2: Novartis transaction accelerates our strategy and delivers against our financial objectives
Novartis transaction accelerates our strategy and delivers against our financial objectives Better balanced and Sales broader range of growth drivers growth Significant synergy and Operating operating leverage EPS efficiencies leverage Returns to shareholders Sustained financial Financial Free cash
Slide 3: Better balanced and broader range of growth drivers
Better balanced and broader range of growth drivers Balanced segments* Balanced geographies* Balanced innovation** Vx 3 New products Cx US 25% Int 30% 41% Rx 8 Rx New products Vx 59% 16% EU 29% 10%+ Cx Innovation sales * 2014 sales restated to exclude Oncology and include 12 months of NVS sales. 64
Slide 4: Delivering medium term sales growth
Delivering medium term sales growth Vx Rx Cx Expected Expected Expected CAGR 2016-20* CAGR 2016-20 CAGR 2016-20 New segments 2019-2020 and beyond HIV Pregnant women Immediate growth driver with untapped potential Consumer and science based innovation Mid-to-high New products 2017-2018 Low FMCH talen
Slide 5: Enhanced operating leverage opportunities 2016-2020
Enhanced operating leverage opportunities 2016-2020 Vx Rx Cx 22% 32% 11% 2014 Core OPM* 2014 Core OPM* 2014 Core OPM* + Cost synergies + New launches + Cost synergies + Revenue opportunities + Restructuring benefits + Revenue opportunities + Pipeline & new launches + Supply chain improvement Pipelin
Slide 6: Restructuring and structural savings
Restructuring and structural savings Total expected benefits from all three programmes ~£3bn Major Change Global Pharma restructuring Novartis synergies Structural savings 2.9 Benefits delivery now accelerated £bn* 2.1 • Largely complete end 2017 0.9 • 20% reinvestment phased over ‘15-’17 1.4 0.6 Ca
Slide 7: Financial efficiency
Financial efficiency Net finance costs Sustained funding efficiency Profits from associates Not material post reduction of Aspen shares Tax rate No material change due to transaction: Maintain expectation of 20% for 2015 Longer term subject to external environment Minority interest Step up refle
Slide 8: Capital allocation and shareholder returns
Capital allocation and shareholder returns Post transaction capital allocation Shareholder returns review completed Maintain current credit ratings Prioritise cash flows to 80p dividend per share 2015-17 • Ordinary dividends • Investment to accelerate synergies Ensure flexibility to Special di
Slide 9: 2015 guidance
2015 guidance Further decline in Rx Significant margin shift Novartis transaction Respiratory transition, Novartis impact, mix, Sales step up for Vaccines inc US price & Oncology and Consumer US Advair price & exit offsetting new structural savings launches & ViiV Royalties Transaction impacts and L
Slide 10: NVS transaction impacts
NVS transaction impacts Impact on 2015 EPS growth* Synergy phasing Inherited cost base ~ -6% to -8% Regulatory divestments Revised capital return 2015 Core EPS: Expected decline of high teens % (CER)* 2016 Core EPS: Expected to reach double digit % growth (CER) * All growth rates CER. 2015 growth is
Slide 11: GSK reshaped: Delivering on our strategy and financial architecture
GSK reshaped: Delivering on our strategy and financial architecture Vx sales Low to mid single digit Core EPS expectations Mid-to-high single digit sales growth growth* 2016-2020 mid-to-high single digit growth CER* Improved operating Rx sales leverage Low single digit growth* Returns to shareholder
Slide 12: 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 13: Unaudited pro forma financial information
Unaudited pro forma financial information The unaudited pro forma financial information in this presentation has been prepared to illustrate the effect of (i) the disposal of the oncology assets, (ii) the Consumer Healthcare joint venture (i.e. the acquisition of the Novartis OTC Business), and (iii