Gsk Plc · LSE:GSK
Gsk — Investor Presentation (June 2021)
25 slides from Gsk's investor presentation, Jun 23, 2021
Slide 1: New GSK: new ambitions for patients and shareholders
23 JUNE 2021 New GSK: new ambitions for patients and shareholders
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements All outlooks, targets, ambitions and expectations regarding future performance and the dividend Forward-looking statements are subject to assumptions, inherent risks and uncertainties, many of which should be read together with the section “B
Slide 3: New GSK: new ambitions for patients and shareholders
New GSK: More than 5% sales and 10% adjusted operating profit CAGR 2021-26 new ambitions Progressive dividend policy for patients and shareholders Pipeline drives growth through DTG LoE, more than £33bn sales by 2031 Prioritise Vaccines and Specialty Medicines, maximise scientific opportunities in p
Slide 4: Delivering major strategic transformation and cultural change
– Delivering major strategic transformation and cultural change – – – – – 2017 – key to address Today Commercial Improved Strengthened Transformed R&D pipeline Innovation performance R&D execution, commercial and whilst and pipeline execution portfolio focus, productivity investing cost discipline i
Slide 5: Significant scale of change and delivery 2017-20
Significant scale of change and delivery 2017-20 Improved performance Strengthened R&D and Transformed whilst investing in R&D pipeline commercial execution 2017 2020 – 11 approvals since 2017 - top quartile – £10bn annual new and specialty sales Sales £30.2bn £34.1bn – R&D spend per launch – Indust
Slide 6: Ready to separate and unlock shareholder value
Ready to separate and unlock shareholder value 2017-2021 New GSK Improved Strengthened Transformed performance R&D commercial whilst investing and pipeline execution in R&D Optimised Created new Leading ESG product world leader performance New Consumer Healthcare portfolio in Consumer and new cultur
Slide 7: New world leader in Consumer Healthcare
New world leader in Consumer Healthcare #1 £10bn * +4% ** 22.1% ^ Overall CH Annual 2020 Net sales 2020 Operating player globally Net Sales growth 2020 Margin Ɨ 5 Global categories 20 GSK CH brands ~ 100 Markets 23k Employees with #1 position^^ >£100M sales served globally 9 Power Brands *Sales incl
Slide 8: Separation on track for mid 2022
Separation on track for mid 2022 Objectives Mechanism for separation Unlock potential in New GSK and New GSK 68% ownership: Consumer Healthcare − At least 80% demerged mid 2022 − Monetise up to 20% retained to strengthen GSK Strengthen New GSK balance sheet new balance sheet Intended to be tax effic
Slide 9: New GSK
New GSK We unite science, talent and technology to get ahead of disease together Purpose Health impact + Shareholder returns + Thriving people We prevent and treat disease with vaccines, specialty and general medicines Strategy R&D focused on the science of the immune system, human genetics and adva
Slide 10: New commitments to growth
New commitments to growth More than 5% sales CAGR 2021-26 More than 10% adjusted OP CAGR 2031 More than £33 billion sales ambition With metrics and incentives strongly aligned to shareholder value creation All outlook and ambition statements are given on a constant currency basis and use 2021 foreca
Slide 11: From historical underperformance to ambitious top quartile growth
From historical underperformance to ambitious top quartile growth Company sales CAGR to 2026* 2010 – 2015 2016 - 2020 2021 - 2026 Company 1 Company 2 New GSK Company 4 Revenues Company 5 Company 6 Company 7 Company 8 Adj OP Company 9 Company 10 Company 11 Company 12 Company 13 R&D spend Company 14 C
Slide 12: Investing to drive step-change in growth and business mix
Investing to drive step-change in growth and business mix 2021-26 sales growth CAGR Changing business sales mix Vaccines and Specialty Illustrative Medicines prioritised Vaccines: high single-digit % Specialty Medicines: double-digit % General Medicines optimised General Medicines: broadly stable 20
Slide 13: Maximising opportunities in prevention and treatment
Maximising opportunities in prevention and treatment Increasing number of …provides significant synergies across prevention opportunity and advantage and treatment… for New GSK – Immune dysfunction contributes – R&D focus on science of immune system, to pathophysiology of many diseases human genetic
Slide 14: Focusing in key therapeutic areas
Focusing in key therapeutic areas Vaccines Specialty Medicines Resource allocation Innovation focus Capital investment Infectious Immunology / Opportunity HIV Oncology Diseases Respiratory Driven* Major unmet patient needs and significant growth opportunities High innovation potential and first-in-c
Slide 15: Vaccines and Specialty high potential late-stage assets add to current growth drivers
Vaccines and Specialty high potential late-stage assets add to current growth drivers Infectious Immunology / HIV Oncology Opportunity Driven Diseases Respiratory Marketed Shingrix Zejula Dovato Benlysta Bexsero Blenrep Cabenuva Nucala Menveo Jemperli# Late-stage RSV Zejula^ depemokimab (‘294) Men A
Slide 16: Portfolio and pipeline to secure growth over next 10 years
Portfolio and pipeline to secure growth over next 10 years Illustrative Vaccines Specialty Medicines More than General Medicines £33bn More than 5% CAGR + Shingrix + RSV + RSV + Next gen Flu + Meningitis + Men ABCWY + Men ABCWY + CD226 axis + Dovato + Cab PrEP - dolutegravir + Blenrep + LA HIV combo
Slide 17: Meaningful margin expansion from 2022
Meaningful margin expansion from 2022 Adjusted Operating Margin >30% by 2026 >30% More than 10% Adjusted OP CAGR 2021-26 Cost initiatives: – £0.5bn restructuring savings 2018-21 Mid – £1.0bn Future Ready savings expected by 20s % 2023 – Approx. 1/3 of total savings reinvested in growth – Major restr
Slide 18: Improved capital position supports growth investment
– Improved capital position supports growth investment – – Capital allocation priorities – Vaccines – Strong operating Strengthen pipeline cash flow (including bolt-on and in-licensing BD) Product launches Specialty Medicines + Sustainability Strengthened balance General Medicines sheet Progressive
Slide 19: ESG performance to deliver health impact and shareholder returns
– ESG performance to deliver health impact and shareholder returns – – – – – Sustainable performance and long-term growth Pricing / Access Global Health Trust for all stakeholders Inclusion & Diversity Environment Reduced risk to operations Product Governance Operating Standards Positive social impa
Slide 20: New GSK to positively impact the health of >2.5 bn people over 10 years
New GSK to positively impact the health of >2.5 bn people over 10 years Estimated patient impact Estimated global impact 1200 Vaccines* 1.3bn 1000 Number of unique patients (m) 800 Specialty Medicines* 40m 600 400 General Medicines 700m 200 Global Health** 1.2bn 0 Africa Asia & Europe Mid East & Nor
Slide 21: New GSK: new ambitions for patients and shareholders
New GSK: More than 5% sales and 10% adjusted operating profit CAGR 2021-26 new ambitions Progressive dividend policy for patients and shareholders Pipeline drives growth through DTG LoE, more than £33bn sales by 2031 Prioritise Vaccines and Specialty Medicines, maximise scientific opportunities in p
Slide 22: Appendix
Appendix
Slide 23: Basis of preparation, assumptions and cautionary statement
Basis of preparation, assumptions and cautionary statement Assumptions relating to the 2021-2026 sales and adjusted operating profit growth The Relevant Statements also factor in all divestments and product exits announced to date as well as outlooks, 2026 cash generated from operations outlook, 203
Slide 24: Basis of preparation, assumptions and cautionary statement
Basis of preparation, assumptions and cautionary statement Assumptions and cautionary statement regarding forward looking statements Forward-looking statements are subject to assumptions, inherent risks and uncertainties, many of which relate to factors that are beyond the Group’s control or precise
Slide 25: New GSK financial reporting considerations
New GSK financial reporting considerations IFRS income statement Operating segments Corporate / other / Commercial R&D adjusting items Revenue and Adjusted OP Adjusted OP OP Product Area Revenues Vaccines Specialty Medicines General Medicines Revenue and Revenue by key product 25