Gsk Plc · LSE:GSK
Gsk — Q1 2022 Earnings Presentation
31 slides from Gsk's earnings presentation, Apr 27, 2022
Slide 1: Q1 2022 results
Q1 2022 results 27 April 2022
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 Strong start to a landmark year Emma Walmsley Luke Miels Growth drivers Deborah Waterhouse Brian McNamara Financial results and 2022 guidance Iain Mackay Dr Hal Barron Q&A Roger Connor David Redfern 3
Slide 4: Strong start to a landmark year
Strong start to a landmark year Emma Walmsley 4
Slide 5: Q1 2022: delivering a step change in performance
Q1 2022: delivering a step change in performance Q1 2022 performance Key highlights Acquisition of Sierra Oncology Inc. Q1 2022 Reported % • Turnover: £9.8 billion (+32%), with continued R&D • Proposed acquisition aligns with strategy of £m AER CER delivery and strengthening pipeline building a stro
Slide 6: Excellent progress across all three strategic priorities
Excellent progress across all three strategic priorities Triumeq PD, dispersible Exciting pipeline of 64 Cabenuva every two and once-daily tablet vaccines and medicines, months approval; oral approved for children 21 in pivotal studies lead-in period optional Innovation living with HIV Sierra Oncolo
Slide 7: Significant R&D pipeline news flow continues
Significant R&D pipeline news flow continues 2022 2023 Regulatory Covifenz (COVID-19, Medicago) vaccine (CA5): H1 RSV2 older adults vaccine Priorix - MMR1 (US): H2 daprodustat - anaemia of CKD3 decisions Menveo liquid: H2 Blenrep - DREAMM-3, 3L+ MM4 Rotarix liquid (US): H2 COVID-19 (Medicago) vaccin
Slide 8: Growth drivers
Growth drivers Luke Miels Deborah Waterhouse Brian McNamara 8
Slide 9: Biopharma demonstrates continued strong performance
Biopharma demonstrates continued strong performance Specialty Medicines +15%1 Nucala +16% delivers strong growth and • Benlysta +18% - clear leader in lupus with continued double-digit growth; strengthened leadership in eosinophilic diseases LN2 in China and Japan driving new patient starts • Oncolo
Slide 10: Vaccines: Shingrix delivers record quarter of sales
Vaccines: Shingrix delivers record quarter of sales Q1 2022: Shingrix sales £698m, >100% Strong US growth and increased contributions from geographic expansion • US: good demand, large retail purchase and channel inventory >100% build vs favourable comparator 800 • EU: high demand in Germany and new
Slide 11: Current treatment options typically exacerbate anaemia
Anaemia is intrinsic to myelofibrosis Current treatment options typically exacerbate anaemia Transfusion is an independent prognostic Anaemia is frequent in newly diagnosed patients, factor of overall survival in myelofibrosis1 worsening with disease progression c.30% c.70% Transfusion required 100%
Slide 12: HIV: delivering on growth targets
HIV: delivering on growth targets Innovation sales accelerating growth Momentum building across portfolio 600 38% 40% • HIV: 14% sales growth benefitting from favourable tender phasing HIV Innovation sales as a % of total HIV 34% 500 35% and US stocking patterns 29% 27% 30% • Innovation sales: c.38%
Slide 13: Global leader in Consumer Healthcare
Global leader in Consumer Healthcare Q1 2022 +16% organic1 / +14% CER sales growthand final stages of executing separation Separation on track Performance • New Haleon brand introduced and Capital Markets Day delivered • Growth across categories • Six appointments to Designate Haleon Board • Strong
Slide 14: Q1 2022: strong consumer healthcare performance across all categories
Q1 2022: strong consumer healthcare performance across all categories Growth % £m AER CER Notes • Continued underlying brand strength Oral health 740 6 9 in Sensodyne and Parodontax • Denture care rebound • Over 30 per cent growth in Panadol Pain relief 639 17 17 and Advil • Double-digit growth acro
Slide 15: Q1 2022: attractive consumer healthcare growth across all regions
Q1 2022: attractive consumer healthcare growth across all regions1 Growth % GSK segment £m AER CER US 857 20 17 Europe 627 4 8 International 1,149 15 17 Total 2,633 14 14 £m AER Organic2 Notes North America 940 20 17 • Strong execution in face of rebounding markets APAC 630 16 15 • Double-digit grow
Slide 16: Financial results and 2022 guidance
Financial results and 2022 guidance Iain Mackay 16
Slide 17: Q1 2022: headline results and total to adjusted reconciliation
Q1 2022: headline results and total to adjusted reconciliation Q1 2022 Q1 2021 Turnover Operating EPS EPS Q1 2022 key financial highlights (£bn) profit (£bn) (pence) (pence) Turnover: £9.8bn, +32% CER, 32% AER Total results 9.8 2.8 35.9 21.5 Dynamics: Strong Shingrix Intangible HIV international ten
Slide 18: Q1 2022: turnover: £9.8bn, +32% CER, +32% AER
Q1 2022: turnover: £9.8bn, +32% CER, +32% AER Biopharma - Commercial Operations Consumer Healthcare Q1-21 sales 5,106 Q1-21 sales 2,312 HIV +14% CER 147 Oral health +9% CER 61 Oncology +15% CER 17 Pain relief +17% CER 94 II, respi & other +18% CER 77 +40% CER +14% CER Vaccines +36% CER 438 VMS +15%
Slide 19: Q1 2022: adjusted operating margin
Q1 2022: adjusted operating margin Key adj. operating profit dynamics Q1-21 margin 25.4% Increasing Specialty Medicines Higher Xevudy sales; modest increase in COGS +55% CER 5.3% and Vaccines mix (60% vs 55%1) commodity prices and freight costs Tight cost control and restructuring Increased investme
Slide 20: Q1 2022: adjusted operating profit to net income
Q1 2022: adjusted operating profit to net income Q1 2021 Q1 2022 Key commentary £m £m Operating profit 1,881 2,613 Increase due to adverse FX and newly Net finance expense (190) (202) issued Haleon bond debt Share of associates 16 (1) Tax (318) (431) Tax rate 18.6% 17.9% In-line with expectations fo
Slide 21: Q1 2022: free cash flow of £1.7bn
Q1 2022: free cash flow of £1.7bn £m Key free cash flow dynamics Q1 2021 free cash flow -3 Increased adjusted operating profit Lower CCL1 10 Upfront income from Gilead settlement Higher net operating cash2 2,166 Favourable timing of collections and profit share payments for Xevudy sales Higher net C
Slide 22: 2022 GSK guidance reconfirmed
2022 GSK guidance reconfirmed 2022 guidance Phasing considerations Sales1 Q2 20221 Between 5% to 7% growth Expect sales growth to be lower than Q1 Adj. operating profit1 H1 20221 Between 12% to 14% growth Expect sales growth to be slightly ahead of full-year expectations COVID-19 solutions: 2022 exp
Slide 23: Q&A
Q&A 23
Slide 24: Appendix
Appendix
Slide 25: R&D pipeline: 64 potential vaccines and medicines
R&D pipeline 64 potential vaccines and medicines Phase I Phase II Phase III/Registration C. difficile* vaccine Malaria (fractional dose)* vaccine Bexsero infants (US) vaccine Klebsiella pneumoniae* vaccine S. aureus* vaccine1 COVID-19 (Medicago)* vaccine Ɨ CMV vaccine Infectious Diseases Shigella* v
Slide 26: Significant R&D pipeline news flow continues
Significant R&D pipeline news flow continues 2022 2023 Regulatory Covifenz (COVID-19, Medicago) vaccine (CA5): H1 RSV2 older adults vaccine Priorix - MMR1 (US): H2 daprodustat - anaemia of CKD3 decisions Menveo liquid: H2 Blenrep - DREAMM-3, 3L+ MM4 Rotarix liquid (US): H2 COVID-19 (Medicago) vaccin
Slide 27: R&D pipeline: Changes in the portfolio since Q4 2021
R&D pipeline Changes in the portfolio since Q4 2021 New to Phase I New to Phase II New to Phase III New to Registration mRNA flu vaccine COVID-19 (Sanofi) vaccine mRNA COVID vaccine daprodustat (HIF-PHI5) anaemia of CKD Therapeutic HSV1 vaccine GSK4381562 (PVRIG2 antagonist) for cancer Removed from
Slide 28: 2022 GSK outlook considerations to support analyst modelling
2022 GSK outlook considerations to support analyst modelling Specialty Medicines turnover Vaccines turnover General Medicines turnover Increase approximately 10% for Specialty Increase low-teens %, excluding pandemic adjuvant Slight decrease Medicines, excluding Xevudy sales sales HIV to increase mi
Slide 29: Zejula: COVID-19 continues to impact ovarian cancer diagnosis and treatment
Zejula: COVID-19 continues to impact ovarian cancer diagnosis and treatment Ovarian cancer diagnoses down c.29% Debulking surgeries down c.19% below 2019 monthly average1,2 below 2019 monthly average1,2 US Newly Diagnosed Ovarian Cancer Patients2 US Ovarian Cancer Debulking Surgeries2 2,500 25M 2,15
Slide 30: Expected costs and savings under Major Restructuring Programmes & Consumer Separation
Expected costs and savings under Major Restructuring Programmes & Consumer Separation Q1 Cumulative 2022 2023 2024 Date 2022 £bn Actuals to Announced 2021 1 Total Actuals Projected Lifetime 2 Synergies 0.5 0.5 0.6 0.6 Consumer Dec-18 Total charges 0.8 - - 0.8 JV Cash payments 0.7 - - 0.7 2 Savings 0
Slide 31: Currency
Currency 2021 currency sales exposure 2022 adj. OP ready reckoner US $ 49% US $ 10 cents movement in average exchange rate for full year Euro € 19% impacts adj. OP by approx. +/- 7.0% Japanese ¥ 6% Euro € 10 cents movement in average exchange rate for full year Other* 26% impacts adj. OP by approx.