Haleon Plc · LSE:HLN
Haleon — GSK Consumer Healthcare — Exane BNPP European CEO Conference 2021
25 slides from Haleon's conference presentation, Jun 10, 2021
Slide 1: Introducing GSK Consumer Healthcare
Introducing GSK Consumer Healthcare Exane BNPP European CEO Conference 10 June 2021
Slide 2: Disclaimer
Disclaimer Over the Counter Medicines This presentation may contain forward-looking statements. Forward-looking statements give the GSK Group’s current expectations or forecasts of future events. An investor can identify these statements by the fact that they do not relate strictly to historical or
Slide 3: Brian McNamara
Brian McNamara CEO, GSK Consumer Healthcare 2016-2021 CEO, GSK Consumer Healthcare Member of GSK Corporate Executive Team 2015 Joined GSK following joint venture with Novartis 2004-2015 Head of Novartis OTC Member Novartis Corporate Executive Committee Joined Novartis to Head North American OTC 1988
Slide 4: Sector more relevant than ever
Sector more relevant than ever Supported by favourable underlying fundamentals Increased Emerging Ageing Increasing Unmet consumer middle class population pressure on consumer focus on health public needs and wellness healthcare systems
Slide 5: Global Consumer Healthcare a £130+ billion market
Global Consumer Healthcare a £130+ billion market GSK the market leader, in a market with annual growth of 3.6%1 Over the Counter Medicines Over-the-Counter Medicines Vitamins, Minerals, & Oral Care Supplements Pain Relief Resp. Health Digestive Health Market CAGR (%) 3.1% 4.8% 4.0% 2.0% 3.6% 2016-2
Slide 6: GSK Consumer Healthcare in a snapshot
GSK Consumer Healthcare in a snapshot 3 #1 £10bn +4% 22.1% 1 2 Overall CH Annual 2020 Net sales growth 2020 Operating player globally Net Sales 2020 Margin 5 20 100 5 Global categories GSK CH brands ~ Markets served 23k Employees with #1 position4 >£100M sales globally 9 Power Brands 1 Sales includi
Slide 7: We are different
We are different A 100% focused global leader in Consumer Healthcare
Slide 8: Our purpose
Our purpose: To deliver better everyday health with humanity
Slide 9: A unique competitive advantage
A unique competitive advantage Combining trusted science and human understanding Trusted Science Better Everyday Health Human Understanding ▪ Strong scientific capabilities ▪ Addressing real consumer health needs 4 ▪ Clinical trials and studies experience ▪ Educating on better health solutions ▪ Bes
Slide 10: Focused Strategy to drive sustainable growth and superior value
Focused Strategy to drive sustainable growth and superior value Sustainable growth Superior value creation ▪ Strong cost and cash control ▪ Drive focused Portfolio ▪ Building brilliant brands ▪ Strategic disciplined capital allocation and investment 4 Guided by our purpose ▪ ESG focus tackling barri
Slide 11: World class portfolio with category-leading positions
World class portfolio with category-leading positions Therapeutic Vitamins, Minerals and Pain Relief Respiratory Oral Health Supplements #1 Therapeutic Oral Health #1 #1 #1 (#3 overall Oral Health) Top 4 categories shown, additionally #1 position in Digestive Health 1 All categories ex Therapeutic O
Slide 12: Global scale, well positioned in key markets
Global scale, well positioned in key markets ▪ Industry’s strongest scale and growth footprint in Canada #2 OTC and VMS 13.7% MS Germany #1 5.1% MS Poland China #1 MNC US #1 UK #3 #1 MNC 3.2% MS ▪ #1 or #2 in 70% of market 9.6% MS 4.6% MS 8.9% globally, these represent MS Turkey #2 Italy #1 MNC 6.2%
Slide 13: Brand-building: Sensodyne and Centrum
Brand-building: Sensodyne and Centrum #1 sensitivity #1 selling multivitamin worldwide #1 enamel protection #1 selling multivitamin in >20 markets
Slide 14: Successfully innovating to drive top-line growth
Successfully innovating to drive top-line growth Market leader in Rx to OTC switch • Clinical studies and regulatory experience in house • Extensive R&D capabilities to support Diverse product innovations • Efficacy or speed of delivery • Packaging or format • Sustainability • Local relevance • Bran
Slide 15: Innovation: Voltaren and Pronamel
Innovation: Voltaren and Pronamel • Voltaren in OTC format without prescription • Launched Q1 2021 in US, Japan & Germany • FY20 c.80% of US Topical Pain relief • Early days, encouraging results to date category growth
Slide 16: Investment in digital driving growth and increasing consumer connectivity
Investment in digital driving growth and increasing consumer connectivity Investment in digital driving share gain E-commerce sales FY20 6% of sales U.S. - e-commerce >10% of sales1 Growing GSK digital China - e-commerce driving Caltrate commerce sales outperformance Digital media spend c. 50% globa
Slide 17: Winning route to market capabilities
Leading presence in mass retail Strong and effective pharmacy coverage Winning route to market capabilities Extensive expert network Extended coverage through distributors
Slide 18: ESG integral to all we do and essential to deliver on our purpose
Aligned with our purpose to deliver everyday health with humanity Ambitious commitments in 2025 and 2030 for a healthy planet ESG integral to all Carbon: Carbon Net Zero Scope 1 and 2, 100% renewable electricity, select brands Carbon Net Zero Scope 3 we do and essential Plastics and Packaging: 100%
Slide 19: Financial performance summary and outlook
Financial performance summary and outlook FY22 Guidance shared FY2020 Results by management in 2018 Revenue growth for FY20 +4%1 Margin mid- to high-20s% by 20222 7 of the 9 power brands gained or held Investment grade balance sheet share, increased share overall Leverage net debt/Adjusted EBITDA Op
Slide 20: GSK Consumer Healthcare separation from GSK expected mid-2022
GSK Consumer Healthcare separation from GSK expected mid-2022 2015 JV completed with Novartis 2018 Acquisition of Novartis stake in CH JV 2018 Pfizer JV announced and guided to GSK Consumer Healthcare separation 3 years from transaction closure (~ August 2022) April 2021 GSK Q1 2021 results confirme
Slide 21: Key messages
Key messages First 100% Consumer Healthcare-listed company in 2022 Unique competitive advantage: Trusted science and human understanding in an increasingly relevant sector Clear strategy to deliver sustainable growth and superior value creation, underpinned by purpose Focused portfolio of category-l
Slide 22: Thank you
Thank you
Slide 23: Appendix
Appendix
Slide 24: Formed through deliberate strategic divestment and targeted M&A
Formed through deliberate strategic divestment and targeted M&A Building a focused consumer healthcare portfolio Buy out 2012 2014 2016 2018 Full buy out of 2020 Novartis from JV for $13bn JV formation JV formation (£9.2bn) Divest: Divest Divest Exit non strategic Tail OTC to Aspen Exit of beverages
Slide 25: Consumer Healthcare overview of portfolio and geographic split
Consumer Healthcare overview of portfolio and geographic split Balanced growth and stability Full year 2020 turnover 2 by category Full year 2020 turnover 3 by geography Vitamins, Minerals and Oral Health Supplements 29% | £2.8bn 16% | £1.5bn International US 40% 34% Respiratory 13% | £1.2bn Digesti
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