Gsk Plc · LSE:GSK
Gsk — Q1 2023 Earnings Presentation
39 slides from Gsk's earnings presentation, Apr 26, 2023
Slide 1: Q1 2023 results
26 April 2023 > Q1 2023 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
Slide 3: Agenda
> Agenda Strong start to 2023 Emma Walmsley Innovation Dr Tony Wood Performance Luke Miels, Deborah Waterhouse and lain Mackay Trust Emma Walmsley Q&A Emma Walmsley, Tony Wood, Luke Miels, Deborah Waterhouse, lain Mackay, David Redfern GSK
Slide 4: Strong start to 2023
> Strong start to 2023 Emma Walmsley, Chief Executive Officer GSK
Slide 5: Q1 2023 sales, operating profit, EPS and dividend
Sales Adj. operating profit 10%'!, -8% 5%, stable Adj. EPS Dividend per share 14%!, 7% Full year 2023 guidance affirmed!
Slide 6: Strong contributions from growth vaccines and medicines driving mix shift
> Strong contributions from growth vaccines and medicines driving mix shift Key growth products contributed 44% of Q1 2023 sales!:2 1.0 09 08 07 0.6 05 0.4 03 0.2 01 0.0 Sales (£bn)! Q1 2023 sales in Vaccines and Specialty Medicines o/ | 61% [J lJ l | | Q1 2023 sales from new a OG approvals since 20
Slide 7: 2023 pipeline delivering momentum
> 2023 pipeline delivering momentum World leader in infectious disease with a broader pipeline based on science of the immune system 7 7 Pipeline vaccines Pipeline highlights ici * RSV? older adult vaccine: US FDA advisory committee (VRBPAC)? voted positively to support and medicines efficacy and sa
Slide 8: Innovation
> Innovation Dr Tony Wood, Chief Scientific Officer GSK
Slide 9: Innovation: four focused therapeutic areas
> Innovation: four focused therapeutic areas Two thirds of our development portfolio comes from infectious diseases and HIV au we Infectious HIV Immunology/ Oncology diseases respiratory RSV OA! Apretude depemokimab momelotinib MenABCWY NOLS (bNAb)? Nucala(COPDy* Jemperli bepirovirsen 3 generation I
Slide 10: Significant developments in prevention and treatment of infectious diseases
> Innovation: significant developments in the prevention and treatment of infectious diseases RSV OA Q1 2023 progress * US FDA' VRBPAC? unanimously supported efficacy and voted 10-2 on safety evidence Upcoming data and regulatory events ° 3 May 2023: US FDA PDUFA * Q2 2023: Second season data expect
Slide 11: Long-acting injectable Cabenuva as effective as daily oral therapy
> Long-acting injectable Cabenuvais as effective as daily oral therapy! Cabenuva patients preferred longer-acting treatment after switching from daily oral treatment? 90% ° — Participants who switched to Cabenuva from bictegravir/emtricitabine/tenofovir alafenamide had significant improvement in tre
Slide 12: Camlipixant in phase III for refractory chronic cough
> Camlipixant, a potential best-in-class P2X3 antagonist in phase II| development for treatment of refractory chronic cough (RCC) SOOTHE phase IIb demonstrated * Comparable efficacy to other medicines in class ° Low incidence of taste disturbance associated with other medicines that broadly target t
Slide 13: Jemperli potential to redefine treatment in 1L EC
> Innovation: Jemperli demonstrated potential to redefine treatment in IL EC 72% reduction in the risk of disease progression or death in dMMR/MSI-H population Primary endpoint: PFS in Primary endpoint: OS dMMR/MSI-H Population in Overall Population 3 E ae a 5 oe = 63.5% 61.4% Dostarimab + CP = S 06
Slide 14: Select R&D events in 2023
> Select R&D events in 2023 Vaccine/medicine Event Catalyst RSV OA momelotinib (myelofibrosis) | Regulatory decision bepirovirsen (hepatitis B) Clinical data Blenrep(multiple myeloma) Clinical data Regulatory decision * 3 May 2023: US FDA PDUFA * H2 2023: regulatory decisions (EU, JP) Clinical data
Slide 15: Performance: growth drivers
> Performance: growth drivers Luke Miels, Chief Commercial Officer Deborah Waterhouse, CEO, ViiV Healthcare and President, Global Health GSK 15
Slide 16: Broad-based commercial execution driving growth
> Performance: broad-based commercial execution driving growth Balanced product group and regional growth Sales contribution by product group! Sales contributions by region! Vaccines ®SpecialtyMedicines _™ General Medicines US Europe International 8,000 8,000 7,000 7,000 6,000 6,000 = 5,000 & 5,000
Slide 17: Q1 2023 sales £6.8bn, +10%
> Performance: QI 2023 sales £6.8bn!, +10%! Continued strong performance across all product groups Vaccines 9%! GSK 100% 80% 60% 40% 20% 0% Strong growth in Shingrix +11% and meningitis +25% . Another record quarter for Shingrix with growing ex-US . demand; now in 31 markets Share of Shingrix sales
Slide 18: RSV vaccine anticipated regulatory approval is imminent
> Performance: RSV vaccine anticipated regulatory approval is imminent Ready for launch of new vaccine with multi-billion Shingrix-like sales potential Delivering clinical evidence in the most vulnerable adult populations Disease awareness campaign launched Efficacy in those with Efficacy in those R
Slide 19: HIV: 15% growth driven by oral 2DR and long-acting regimens
> HIV: 15% growth in Q1 2023 driven by oral 2DR' and long-acting regimens Strong commercial execution across HIV portfolio 1000 46% 47% 50% 900 A2% Le = 45% 800 36% Ser™ 40% 36% 28% 7 600 ra 30% 25% 26% Joe -o-o7 25% 400 20% 300 | | | | 18% Sales £m a Ss 8 10% 100 5% 0 0% QI 2021Q2 2021Q3 2021 Q4 Q1
Slide 20: Performance: financial results
> Performance: financial results lain Mackay, Chief Financial Officer GSK 20
Slide 21: Q1 2023 results and total to adjusted reconciliation
> Performance: Q1 2023 results and total to adjusted reconciliation Total results - Total Profit from discontinued operations Total results - Continuing operations Intangible amortisation Intangible impairment Major restructuring Transaction related Divestments, significant legal and other Adjusted
Slide 22: Q1 2023 adj. operating margin
> Performance: Q1 2023 adj. operating margin Improvement to 30.1% Q1’22 margin COGS -32% CER SG&A +10% CER R&D +6% CER Royalties +28% CER ue Q1’23 margin at 22 FX i] Currency 0.6% Q1’23 margin at 23 FX i] 30.1% Key dynamics © © © O99 OO Sales: growth across all product groups! COGS: lower sales of l
Slide 23: Adj. OP to adj. profit attributable to shareholders
> Performance: Q1 2023 adj. OP to adj. profit attributable to shareholders Operating profit (OP) Net finance expense Share of associates Tax Tax rate Non-controlling interests Profit attributable to shareholders GSK Q1 2022 Q1 2023 £m 2,092 (170) (2) (303) 15.8% (121) 1,496 Key commentary +8% at AER
Slide 24: Q1 2023 free cash outflow of £0.7bn
> Performance: Q1 2023 free cash outflow of £0.7bn Q1 2023 cash generated from operations of £0.3bn (-88%) Key dynamics Lower cash generated from operations, including: 0) QI 2022 upfront income (£0.9bn) from Gilead Science, Inc. settlement Unfavourable timing of profit share payments for Xevudy sal
Slide 25: 2023 guidance reconfirmed
> Performance: 2023 guidance reconfirmed Q) delivery affirms full year expectations 2023 guidance Phasing considerations! (ex-COVID-19 solutions’) Sales! Sales! Now expect H1 and H2 sales growth to be broadly similar. @ @ In Q2, expect de-stocking in HIV and General Medicines Between 6% to'8% growth
Slide 26: Trust: delivering health impact sustainably
> Trust: delivering health impact sustainably Emma Walmsley, Chief Executive Officer GSK 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 responsible business ae || Wa 3 Access Environment Global health and health security Diversity, equity and inclusion 3 lh Product governance Ethical standards GSK 1. Pre-expos
Slide 28: Strategy focused on prevention and treatment
Strategy focused on World leader in prevention and infectious disease with treatment to get ahead a broader pipeline of disease together based on science of the immune system 1. Medium-term is 2021-2026, excluding COVID-19 solutions _2. At constant exchange rates (CER) Highly attractive medium-term!
Slide 29: Q&A
Slide 30: Appendix
Appendix 30
Slide 31: Phase I – 34 assets, Phase II – 17 assets
Phase I – 34 assets Phase II – 17 assets 31
Slide 32: Phase III / Registration – 17 assets
Phase III / Registration – 17 assets 32
Slide 33: Upcoming pipeline catalysts: 2023 and 2024
lim Infectious Diseases > Upcoming pipeline catalysts: 2023 and 2024 ee ea tse lm Oncology IE Opportunity driven RSV older adults vaccine - 260 YoA, us Shingrix -1 8+ at increased risk of HZ JP momelotinib - MOMENTUM, myelofibrosis us daprodustat - ASCEND, anaemia of CKD EU RSV older adults vaccine
Slide 34: Q1 2023 changes since 2022
Infectious Diseases HIV (Viiv) Immunology / Respiratory Oncology Opportunity driven > Q1 2023 changes since 2022 Sma Changes on pipeline Achieved pipeline catalysts New to Phase | Regulatory submission & acceptances [BBN belantamab - anti-BCMA antibody - multiple myeloma (19) Nucata - severe asthma
Slide 35: 2023 full year outlook considerations to support modelling
> Performance: 2023 full year outlook considerations to support modelling Vaccines turnover Increase mid-teens %, excluding pandemic adjuvant sales Shingrixto deliver another record year for sales with double-digit % growth Flu to decrease low single-digit % Meningitis to increase mid-teens % Establ
Slide 36: Continuing operations basis for guidance
> Performance: continuing operations basis for guidance Historical financials, adjusted results 2022 2023 Ql Q2 Q3 Q4 FY Ql Including COVID-19 solutions Sales (£m) 7,190 6,929 7,829 7,376 29,324 6,951 Operating profit (Em) 1,943 2,008 2,605 1,595, 8,151 2,092 Earnings per share (pence) post- 323 347
Slide 37: Performance: currency
> Performance: currency 2022 currency sales exposure! 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. ope
Slide 38: Abbreviations
ADC Antibody drug conjugate CA Canada CKD Chronic Kidney Disease CN China COPD Chronic obstructive pulmonary disease cUTI Complicated urinary tract infection GC Urogenital Gonorrhea GMMA Generalised Modules for Membrane Antigens HBV Hepatitis B virus HZ Herpes Zoster MAPS Mulitple Antigen Presenting
Slide 39: gsk.com
gsk.com