Gsk Plc · LSE:GSK
Gsk — GlaxoSmithKline — Q2 2003 Earnings Presentation
22 slides from Gsk's earnings presentation, Jul 23, 2003
Slide 1: Second Quarter Results Presentation to Investors/Analysts
Second Quarter Results Presentation to Investors/Analysts 23rd July 2003
Slide 2: CEO's Remarks
CEO’s Remarks JP Garnier Chief Executive Officer
Slide 3: Strong Earnings Track Record
Strong Earnings Track Record GSK EPS Growth Since Merger (Y/E 2000) Q1 2001 +13% Q2 2001 +13% Q3 2001 +18% Q4 2001 +14% Q1 2002 +18% Q2 2002 +13% Q3 2002 +15% Q4 2002 +9% Q1 2003 +26% Q2 2003 +15% % growth on business performance basis in CER terms
Slide 4: Financial Results
Financial Results John Coombe Chief Financial Officer
Slide 5: Business Performance Results 2Q 2003
Business Performance Results 2Q 2003 2Q03 2Q02 % change £m £m CER Reported Sales 5,375 5,415 3 (1) - Pharma Sales 4,566 4,613 3 (1) Trading profit 1,891 1,819 8 4 Other operating income 87 16 Net interest expense (37) (29) Profit before tax 1,969 1,827 13 8 Tax rate 27.9% 27.0% Earnings 1,394 1,305
Slide 6: Business Performance Results 1H 2003
Business Performance Results 1H 2003 1H03 1H02 % change £m £m CER Reported Sales 10,597 10,525 6 1 - Pharma sales 9,032 8,974 6 1 Trading profit 3,698 3,434 15 8 Profit before tax 3,743 3,420 18 9 Earnings 2,665 2,439 17 9 EPS 45.7p 40.9p 20 12
Slide 7: Currency Trends ($) 2002 vs 2003
Currency Trends ($) 2002 vs 2003 1.70 July 16th (1.59) 1.65 1.60 £/$ 1.55 2002 1.50 2003 1.45 1.40 1.35 1.30 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Slide 8: Performance by Operating Division
Performance by Operating Division Q203 Q202 Growth £m £m CER % Sales 5,375 5,415 3 Pharmaceuticals 4,566 4,613 3 Consumer Healthcare 809 802 3 Trading Profit 1,891 1,819 8 Pharmaceuticals 1,740 1,697 7 Consumer Healthcare 151 122 24
Slide 9: Trading Profit Analysis
Trading Profit Analysis Q203 Q202 % change £m £m CER £ Sales 5,375 5,415 3 (1) Cost of Goods (990) (1,052) (4) (6) 18.4% 19.4% SG&A (1,850) (1,950) (1) (5) 34.4% 36.0% R&D (644) (594) 12 8 12.0% 11.0% Trading Profit 1,891 1,819 8 4 35.2% 33.6% % In Italics are % of Sales
Slide 10: Cash Flow
Cash Flow Q2 03/£m Q2 02/£m Net Operating Cash Flow 1,694 2,101 Taxation (627) (427) Capital Expenditure (186) (232) Dividends (760) (719) Purchase of Own Shares (286) (1,084) Other 54 55 Increase in Net Debt (111) (306) 30 June 03 31 Mar 03 Net Debt (2,162) (2,051)
Slide 11: Pharmaceuticals
Pharmaceuticals David Stout President, Pharmaceutical Operations
Slide 12: Pharmaceuticals - Sales by Region
Pharmaceuticals - Sales by Region 3 months to June 2003 6 months to June 2003 International International £0.9bn £1.8bn (+9%) (+9%) USA USA £2.4bn £4.7bn (+2%) (+7%) Europe Europe £1.3bn £2.5bn (+2%) (+1%) Total Pharma Sales Total Pharma Sales £4.6bn +3% £9bn +6% Note: % growth is CER
Slide 13: Pharmaceuticals Portfolio
Pharmaceuticals Portfolio 6 months to June 2003 Other £603m -10% Oncology & CV Respiratory £871m +18% £2.2bn +14% Vaccines £549m +8% Metabolic £505m +12% Anti-Bacterials £886m -24% CNS £2.2bn +11% Anti Virals £1.2bn +10% Total Pharma Sales £9bn +6% Note: CER % growth - six months ended 30th June 200
Slide 14: Strong, sustained growth in US TRx
Strong, sustained growth in US TRx +59% +59% 1.2 MAT MAT 1.0 TRx (Millions) 0.8 0.6 0.4 0.2 3 03 02 2 02 02 2 03 03 02 02 -03 -03 r-0 l-0 t-0 g- n- n- p- c- n- b- v- ay Ju ar Ap Oc Au Ja De Ju Ju Se No Fe M M Source: Verispan US R3 Market Monthly TRx to Early Alert June 2003
Slide 15: Asthma Patient Segmentation of US market
Asthma Patient Segmentation of US market “Primary Care Perception”1 100% 90% % of consulting asthma patients Mild 80% 81% 70% 60% 50% 40% 30% 20% Moderate/ Advairshare share 10% Severe Advair 60% 19% 60% 0% Estimated US Asthma Population = 20 million3 Sources: 1. 2002 MDS . 2. Fuhlbrigge et al. Am J
Slide 16: Asthma Patient Segmentation of US market
Asthma Patient Segmentation of US market “Primary Care “Patient Morbidity Perception”1 Reality”2 100% 90% Mild % of consulting asthma patients Mild 81% 23% 80% 70% 60% Moderate/ 50% Severe 77% 40% 30% 20% Moderate/ Advairshare share 10% Severe Advair 60% 19% 60% 0% Estimated US Asthma Population = 2
Slide 17: US OAD Weekly NRx Market Share
US OAD Weekly NRx Market Share 10.5% 10.50% Avandamet Launch Avandia/Avandamet % 10.00% 9.50% 9.00% 9.1% Actos 8.50% 02 03 03 03 03 03 02 02 03 03 03 03 02 03 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /11 /01 /02 /03 /04 /06 /10 /12 /03 /05 /05 /07 /11 /01 01 03 14 07 18 20 11 13 28 09
Slide 18: Strong HIV portfolio continues to drive growth
Strong HIV portfolio continues to drive growth: £765m +12% (YTD) Top 10 US HIV patient regimens ALL contain a GSK brand Regimen Regimen %of % ofPatients Patients Combivir/Sustiva Combivir/Sustiva 12% 12% Trizivir Trizivir 11% 11% Combivir/Viracept Combivir/Viracept 7% 7% Combivir/Viramune Combivir/V
Slide 19: Coreg: The True Profile
Coreg: The True Profile CAPRICORN Coreg reduced mortality by Coreg reduced the risk of death 17% compared to metoprolol by 23% when added to ACE, aspirin and statin
Slide 20: First Ever Partnership
FIRST EVER PARTNERSHIP
Slide 21: Wellbutrin
Wellbutrin 65% of doctors* would prescribe more Wellbutrin if it was once daily dosing. Source: MMI - Treatment of Depression Study - Physicians, February 2003 *761 doctors response (primary care n=598; psychiatrists n=163) to Q: Reasons for not prescribing more Wellbutrin?
Slide 22: GlaxoSmithKline
osk GlaxoSmithKline