Gsk Plc · LSE:GSK
Gsk — GlaxoSmithKline — Q1 2002 Earnings Presentation
21 slides from Gsk's earnings presentation, Apr 24, 2002
Slide 1: First Quarter Results Presentation to Investors/Analysts
First Quarter Results Presentation to Investors/Analysts 24th April 2002
Slide 2: Financial Results
Financial Results John Coombe Chief Financial Officer
Slide 3: Statutory Results
Statutory Results Business Exceptional Total Total Performance Items* 1Q02 1Q01 £m £m £m £m Sales 5,110 - 5,110 4,757 Trading profit 1,615 (175) 1,440 1,024 Profit before tax 1,593 (163) 1,430 1,042 EPS 19.0p (1.9p) 17.1p 11.3p * Costs associated with merger integration and manufacturing restructuri
Slide 4: Business Performance Results
Business Performance Results 1Q02 1Q01 % change £m £m CER Reported Sales 5,110 4,757 8 7 - Pharma Sales 4,361 3,982 10 10 Trading profit 1,615 1,369 19 18 Other operating (expense)/income (5) 24 Net interest expense (34) (20) Profit before tax 1,593 1,388 16 15 Tax rate 27.0% 26.8% Earnings 1,134 98
Slide 5: Performance by Operating Division
Performance by Operating Division 1Q02 1Q01 Growth £m £m CER % Sales Pharmaceuticals 4,361 3,982 10 Consumer Healthcare 749 775 -1 Trading Profit Pharmaceuticals 1,521 1,269 20 Consumer Healthcare 94 100 2 5
Slide 6: Trading Profit Analysis
Trading Profit Analysis 1Q02 1Q01 Change £m £m CER% Sales 5,110 4,757 8 Cost of goods 1,075 1,018 7 21.0 % 21.4 % S,G&A 1,770 1,784 0 34.7 % 37.5 % R&D 650 586 11 12.7 % 12.3 % Trading profit 1,615 1,369 19 31.6 % 28.8 % % % in in italics italics are are % % of of sales sales 6
Slide 7: Strong Cash Flow of £1.3bn
Strong Cash Flow of £1.3bn 1Q 02/£m 1Q01/£m Net Operating Cash Flow 1,286 793 Merger & restructuring (153) (205) Free Cash Flow 1,133 588 Capital expenditure (176) (194) Dividends paid (545) (163) Sale/Disposal of investments 9 22 Purchase of own shares (504) (101) Issue of shares 18 45 Purchase of
Slide 8: Consumer Healthcare Sales
Consumer Healthcare Sales Jack Ziegler President Consumer Healthcare
Slide 9: Consumer Healthcare 1Q02
Consumer Healthcare 1Q02 • Global sales -1% but estimated consumption +3% – US & Mexico negative on customer initiatives to reduce inventory • Near-term outlook – Sales growth to track consumption – Block integration going well – New NRT opportunity - Nicotine Lozenge – Trading profit growth 9
Slide 10: Consumer Healthcare Growth History
Consumer Healthcare Growth History • Large step increments – brand acquisitions (2001) – OTC switches Block Acquisition Global • Trading profit growth (1996) Sales OTC Smoking Control £3.3B (1995) Sterling Acquisition (1993) Global Rank: US MMD Partnership #2 OTC & #2 Oral Care (1992) £1.3B 10
Slide 11: Pharmaceutical Sales
Pharmaceutical Sales JP Garnier Chief Executive Officer
Slide 12: US reported growth +15% in Q102 in line with underlying growth
US reported growth +15% in Q102 was in line with underlying growth • Some products impacted by wholesaler buying patterns, e.g. : Reported Est. Underlying US Product Growth Growth Paxil (3%) +15% Augmentin (7%) +2% Avandia +21% +10% Imitrex +21% 0% Wellbutrin +41% +28% 12
Slide 13: Central Nervous System
Central Nervous System three months ended 31st March 2002 World USA Europe RoW % % % % £m chg £m chg £m chg £m chg Seroxat/Paxil 438 1 293 (3) 88 (1) 57 30 Wellbutrin 185 41 181 41 - - 4 21 Imigran/Imitrex 184 19 141 21 34 8 9 35 Lamictal 100 35 55 55 35 14 10 32 Total CNS 994 10 712 13 186 0 96 15
Slide 14: Paxil CR - The Power of Balance
Paxil CR - The Power of Balance Efficacy to get them there… Tolerability to keep them going ü Proven efficacy in depression and its associated anxiety ü Well tolerated in adult and elderly patients symptoms ü Significant improvement in depressed mood as early as ü Low dropout rate due to adverse eve
Slide 15: Paxil CR - Efficacy Plus Proven Tolerability
Paxil CR - Efficacy Plus Proven Tolerability Low incidence of patient dropout due to adverse events 50 Week 12 40 % of Patients 30 20 10 0 Paxil CR Placebo These data are pooled from 2 randomized, double-blind, placebo-controlled depression studies identical in design. Paxil CR dose ranged from 25mg
Slide 16: Anti-Viral
Anti-Viral three months ended 31st March 2002 World USA Europe RoW % % % % £m chg £m chg £m chg £m chg HIV 350 18 205 21 110 14 35 17 Valtrex 96 27 63 44 16 (12) 17 23 Zovirax 60 (14) 14 56 18 (26) 28 (22) Zeffix 30 37 3 >100 4 58 23 29 Total Anti-Viral 550 17 294 28 152 6 104 9 % change is at const
Slide 17: Anti-Bacterial
Anti-Bacterial three months ended 31st March 2002 World USA Europe RoW % % % % £m chg £m chg £m chg £m chg Augmentin 388 (4) 257 (7) 91 4 40 (4) Ceftin 69 (37) 13 (77) 33 (5) 23 (3) Other Anti-Bacterial 187 (2) 56 (6) 70 8 61 (8) Total Anti-Bacterial 644 (9) 326 (17) 194 6 124 (6) % change is at con
Slide 18: GI/Metabolic
GI/Metabolic three months ended 31st March 2002 World USA Europe RoW % % % % £m chg £m chg £m chg £m chg Avandia 196 28 167 21 10 52 19 >100 Other GI/Metabolic 157 (13) 25 4 56 (18) 76 (14) Total GI/Metabolic 353 5 192 19 66 (12) 95 (3) % change is at constant exchange rates 18
Slide 19: Vaccines
Vaccines three months ended 31st March 2002 World USA Europe RoW % % % % £m chg £m chg £m chg £m chg Hepatitis vaccines 118 10 55 24 45 9 18 (15) Infanrix 64 24 27 72 25 (3) 12 24 Other vaccines 62 29 - - 23 24 39 36 Total Vaccines 244 18 82 35 93 8 69 17 % change is at constant exchange rates 19
Slide 20: Respiratory
Respiratory three months ended 31st March 2002 World USA Europe RoW % % % % £m chg £m chg £m chg £m chg Seretide 363 >100 191 >100 141 69 31 >100 Flixotide/Flovent 200 (14) 101 (18) 56 (20) 43 9 Serevent 136 (25) 80 (26) 47 (25) 9 (8) Key asthma prd’s 699 37 372 60 244 13 83 35 Flixonase/Flonase 137
Slide 21: Building the Pipeline
Alvimopan Building the Pipeline April 02 October 2001 March 2002 Therapeutic area Compound Type Indication Phase Estimated filing dates Therapeutic area Compound Type Indication Phase Estimated filing dates Phase III 8 Phase III 12 Phase II 15 Phase II 19 Phase I 27 Phase I 25 50 NCEs 56 NCEs 21