Gsk Plc · LSE:GSK
Gsk — Q4 2022 Earnings Presentation
37 slides from Gsk's earnings presentation, Feb 1, 2023
Slide 1: Full year and Q4 2022 results
01 February 2023 Full year and Q4 2022 results Conference call and webcast for investors and analysts gsk.com
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 Full year 2022
Agenda Full year 2022 Emma Walmsley Innovation Dr Tony Wood Performance Luke Miels, Deborah Waterhouse and Iain Mackay Trust Emma Walmsley Q&A David Redfern 3
Slide 4: Full year 2022: delivered a landmark year
Full year 2022: delivered a landmark year Emma Walmsley, Chief Executive Officer 4
Slide 5: A focused global biopharma company with bold ambitions
A focused global biopharma company with bold ambitions Ambition and Purpose Growth Flexibility To unite science, Highly attractive medium-term1 Strengthened balance technology, and talent to target for sales and adjusted sheet, creating new get ahead of disease operating profit growth of >5% flexibi
Slide 6: Full year 2022: delivered a landmark year
Full year 2022 Delivered a landmark year Turnover1 Adj. operating profit1 +13% (+10%2) +14% (+17%2) Achieved double-digit turnover +10%, adj. operating profit growth +17%, excluding COVID-19 solutions £29.3bn £8.2bn Step change in commercial execution with growth across the portfolio: • Specialty Me
Slide 7: Delivering committed improvements in performance
Delivering committed improvements in performance Excluding COVID-19 solutions 2021-2026 outlook1 20222 Status 2023 outlooks3 Sales: >5% CAGR +10% ✓ 6-8% Vaccines: high-single digit % CAGR +17% ✓ Increase mid-teens % Specialty Medicines: double-digit % CAGR +15% ✓ Increase mid to high single-digit %
Slide 8: 2022 pipeline progress and momentum
2022 pipeline progress and momentum World leader in infectious disease based on science of the immune system Pipeline vaccines 2022 pipeline highlights Business Development and medicines Acquisition of Affinivax 69 • Apretude: launched first and only long- acting injectable for HIV prevention • Acce
Slide 9: Innovation
Innovation Dr Tony Wood, Chief Scientific Officer 9
Slide 10: Innovation: four focused therapeutic areas
Innovation: four focused therapeutic areas Two thirds of our development portfolio comes from infectious disease and HIV Infectious HIV Immunology/ Oncology Diseases Respiratory RSV OA1 Apretude depemokimab momelotinib MenABCWY N6LS (bNAb)2 Nucala (COPD)4 Jemperli bepirovirsen 3rd generation INSTI3
Slide 11: Innovation: 2022 in review
Innovation: 2022 in review Key milestones delivered Select clinical-stage readouts Select Business Development transactions Vaccine/Medicine Phase/Indication Status Late stage Shingrix Marketed (ZOSTER-049); shingles (herpes zoster) ✓ RSV OA vaccine (RSVPreF3) Phase III (AReSVi-006); respiratory syn
Slide 12: Bepirovirsen: a potential new era in the management of hep B
Innovation: bepirovirsen - a potential new era in the management of hep B Comprehensive clinical trial programme ongoing Trial Design bepirovirsen + nucleot(s)ides 12-24 weeks B-CLEAR Phase II Data presented: EASL1, AASLD2 NEJM3, 2022 B-CLEAR bepirovirsen + placebo 12-24 weeks bepirovirsen + nucleot
Slide 13: Gepotidacin: a potential novel antibiotic to treat uUTI
Innovation: gepotidacin – a potential novel antibiotic to treat uUTI1 Outpatient antibiotic resistance rates highlight need for new antibiotics Diminishing utility of existing antibiotic classes Annual incidence 40% of women feel in women c.12% symptoms restrict for uUTI6 daily activities 15m episod
Slide 14: Innovation: 2022-2024 key news flow
Innovation: 2022-2024 key news flow 2022 (Achieved) 2023 2024 Priorix – MMR1 (US) H1 daprodustat – ASCEND, anaemia of CKD (US, EU) Jemperli13 – RUBY11, 1L endometrial cancer (EU) Regulatory approvals or other regulatory action Vocabria/Rekambys – HIV (JP) momelotinib – MOMENTUM, myelofibrosis (US) m
Slide 15: Performance: growth drivers
Performance: growth drivers Luke Miels, Chief Commercial Officer Deborah Waterhouse, CEO, ViiV Healthcare and President, Global Health 15
Slide 16: Full year 2022 sales £29.3bn, +13%
Performance: Full year 2022 sales £29.3bn, +13% Strong commercial execution across all product groups • 10 products exceeded £1bn in sales 2021 sales 24,696 Specialty Medicines +15% CER 1,082 • Specialty Medicines: strong demand for Benlysta, Nucala and new HIV products. Oncology +17% Vaccines +17%
Slide 17: Vaccines +17%
Performance: Vaccines +17%1 Shingrix delivers record £3bn sales; meningitis exceeds £1bn • US: Higher retail and non-retail demand, strong commercial execution and favourable channel Shingrix sales by geography Shingrix inventory movements 3,500 800 3,000 700 • EU and International: Germany and Chin
Slide 18: Ongoing evolution to Specialty Medicines and Vaccines
Performance: ongoing evolution to Specialty Medicines and Vaccines Commercial excellence sharpened, with focus on newer, growing products Specialty Medicines and Vaccines Progress of priority growth drivers 20 70% 12 42% 62% 18 58% 58% 55% 60% 10 33% 16 50% 46% 50% 28% 14 8 Sales (£bn) Sales (£bn) 1
Slide 19: 12% HIV growth in 2022 driven by innovation portfolio
Performance: 12% HIV growth in 2022 driven by innovation portfolio Momentum building across portfolio Growth driven by Dovato and long-acting regimens 1,000 48% • Sales of £5.7bn in 2022 driven by two drug 800 41% 44% regimens and long-acting injectable portfolio 38% 34% • Innovation sales of £2.5bn
Slide 20: Performance: financial results
Performance: financial results Iain Mackay, Chief Financial Officer 20
Slide 21: 2022 results and total to adjusted reconciliation
Performance: 2022 results and total to adjusted reconciliation Turnover Operating 2022 EPS 2021 (£bn) profit (£bn) (pence) EPS (pence) Key dynamics Total results - Total 371.4 109.6 Profit from discontinued operations Profit from discontinued Gain on demerger (fair value less book value) (260.6) (26
Slide 22: 2022 adj. operating margin
Performance: 2022 adj. operating margin Improvement to 27.8% 2021 margin 26.3% Key dynamics COGS +18% CER 1.3% Sales: growth across all product groups COGS: increasing Specialty Medicines and Vaccines mix (62% vs 58%1) SG&A +15% CER 0.5% +0.3% SG&A: continued restructuring benefits and tight cost co
Slide 23: 2022 adj. operating profit to adj. profit attributable to shareholders
Performance: 2022 adj. operating profit to adj. profit attributable to shareholders1 2021 2022 Key commentary £m £m +26% at AER, +14% at CER (ex- Operating profit 6,493 8,151 pandemic2 +17% at CER) Net finance expense (752) (791) Sterling Notes repurchase in November Share of associates 33 (2) Tax (
Slide 24: 2022 free cash flow of £3.3bn
Performance: 2022 free cash flow of £3.3bn1 2022 cash generated from operations of £7.9bn1 Key dynamics Higher cash generated from operations, including: 2021 free cash flow 3,301 - Increased adj. operating profit - Upfront income from Gilead Science, Inc. settlement Higher CGFO2 695 - Favourable fo
Slide 25: 2023 guidance builds on 2022's step change in delivery
Performance: 2023 guidance builds on 2022’s step change in delivery Remain firmly on track to deliver on 2026 outlooks 2022 performance (ex-pandemic1) 2023 guidance (ex-pandemic1) Sales1 Sales1 Between 6% to 8% growth 10% growth Guidance: between 8 to 10% growth Adj. operating profit1 Between 10% to
Slide 26: Trust: delivering health impact sustainably
Trust: delivering health impact sustainably Emma Walmsley, Chief Executive Officer 26
Slide 27: Purpose: to get ahead of disease together
Purpose: to get ahead of disease together For health impact, shareholder returns and thriving people Six priority areas of To impact the health of >2.5 billion people over responsible business the next 10 years #1 position in the Access to Medicines Index for 8th consecutive year and a leading appro
Slide 28: A focused global biopharma company with bold ambitions
A focused global biopharma company with bold ambitions Strategy focused on the World leader in Highly attractive Confident in ability to prevention and infectious disease medium-term1 target sustain growth through treatment of disease based on science of the for sales and adjusted the decade and imm
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Slide 30: Appendix
Appendix 30
Slide 31: Innovation: 69 potential new vaccines and medicines
Innovation: 69 potential new vaccines and medicines Phase I Phase II Phase III/Registration 2904545* (recombinant protein) Ɨ C. difficile 3437949* (recombinant protein) Ɨ Malaria fractional dose Bexsero infants US (recombinant protein) MenB19 4429016* (bioconjugated, recombinant protein) Ɨ K. pneumo
Slide 32: Innovation: 2022-2024 key news flow
Innovation: 2022-2024 key news flow 2022 (Achieved) 2023 2024 Priorix – MMR1 (US) H1 daprodustat – ASCEND, anaemia of CKD (US, EU) Jemperli13 – RUBY11, 1L endometrial cancer (EU) Regulatory approvals or other regulatory action Vocabria/Rekambys – HIV (JP) momelotinib – MOMENTUM, myelofibrosis (US) m
Slide 33: Innovation: R&D pipeline changes since last quarter
Innovation: R&D pipeline changes since last quarter Phase I Phase II Phase III Registration 4348413 (GMMA) Gonorrhea 4406371 (live, attenuated) tebipenem pivoxil (antibacterial 4353001 (Sanofi) COVID-19 MMRVns carbapenem) cUTI 5251738 (TLR8 agonist) HBV Rotarix liquid US (live attenuated, 4106647 (p
Slide 34: 2023 full year outlook considerations to support modelling
Performance: 2023 full year outlook considerations to support modelling Specialty Medicines turnover Vaccines turnover General Medicines turnover Increase mid to high single-digit % for Specialty Increase mid-teens %, excluding pandemic adjuvant Slight decrease Medicines, excluding Xevudy sales sale
Slide 35: Continuing operations basis for guidance
Performance: continuing operations basis for guidance Historical financials, adjusted results 2021 2022 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Including COVID-19 solutions Sales (£m) 5,155 5,838 6,627 7,076 24,696 7,190 6,929 7,829 7,376 29,324 Operating profit (£m) 1,325 1,641 2,209 1,318 6,493 1,943 2,008
Slide 36: Currency
Performance: currency 2022 currency sales exposure1 2023 adj. operating profit US $ 48% US $: 10 cents movement in the average exchange rate for full year impacts adj. operating profit by approx. +/- 8.0% Euro € 17% Euro €: 10 cents movement in the average exchange rate for full year impacts adj. op
Slide 37: gsk.com
gsk.com