Haleon Plc · LSE:HLN
Haleon — Investor Day (February 2022)
179 slides from Haleon's investor day presentation, Feb 28, 2022
Slide 1: Consumer Healthcare Capital Markets Day
Consumer Healthcare Capital Markets Day 28 February 2022 1
Slide 2: Agenda
Agenda Introduction 12:30-12:35 Sonya Ghobrial, Consumer Healthcare Head of Investor Relations Delivering shareholder value 12:35-12:40 Emma Walmsley, Chief Executive Officer GSK Haleon: A global consumer healthcare leader delivering sustainable 12:40-13:10 above market growth and attractive returns
Slide 3: Disclaimer
DISCLAIMER NOT FOR RELEASE, PUBLICATION, DISTRIBUTION OR FORWARDING, IN WHOLE If any such securities are offered or sold in the future, they will not be offered or sold in OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO ANY JURISDICTION IN the United States absent registration under the US Securities
Slide 4: Disclaimer cont.
DISCLAIMER cont. Except where otherwise indicated in the Presentation, the information provided herein is Such forward-looking statements are not guarantees of future performances and no based on matters as they exist as of the date of preparation of the Presentation and not assurance can be given t
Slide 5: Disclaimer cont.
DISCLAIMER cont. Unless otherwise stated, statements of market position are on the basis of sales to Any product claims which appear in this Presentation are only intended for audiences in consumers in the relevant geographic market or product category in 2020, as reported the territories for which
Slide 6: Delivering shareholder value
Delivering shareholder value Emma Walmsley, CEO 6
Slide 7: Haleon built through progressive strategic M&A and divestment moves
Haleon built through progressive strategic M&A and divestment moves Focused consumer healthcare portfolio Significantly improved business performance 2018 2020 20144 20215 2012 JV formation Buy out Divest 20222 with Novartis Full buy out of Exit non strategic Divest categories, Horlicks1 Non-strateg
Slide 8: Delivering value for shareholders
Delivering value for shareholders • Unlocks value and strengthens prospects • Two highly focussed businesses • Two new distinctive equity investment options • Positive, global human-health impact • Compelling performance outlooks and attractive returns Target demerger date: July 2022 8
Slide 9: A global consumer healthcare leader delivering sustainable above market growth
A global consumer healthcare leader delivering sustainable above market growth and attractive returns Brian McNamara 28 February 2022
Slide 10: Global leader 100% focused on consumer healthcare with clear purpose
Global leader 100% focused on consumer healthcare with clear purpose Exceptional portfolio of category leading brands with attractive footprint and competitive capabilities Strategy to outperform and run a responsible business, integral to all we do 4-6% organic annual sales growth1, sustainable mod
Slide 11: Highly experienced management team
Highly experienced management team Brian McNamara Tobias Hestler Tamara Rogers Franck Riot Lisa Paley Keith Choy Filippo Lanzi Chief Executive Chief Financial Chief Marketing Head of Research Head of U.S. and North Head of Asia Pacific Head of EMEA and Officer Officer Officer and Development America
Slide 12: Exceptional brands
— Exceptional brands SENSODYNE /— Voltaren ef parodontax S |_ <A Advil DrBEST EXCEDRIN’ @ -AID wis Ei 12 Fenbid® HAL=ON
Slide 13: Deliver better everyday health with humanity
Deliver better everyday health with humanity 13
Slide 14: Track record of strong performance
Track record of strong performance Haleon portfolio revenue Adjusted operating margin (%) Underlying free cash flow (£bn)2 growth (%)1 4.9 22.8 21.0 1.6 3.9 1.4 19.5 0.8 2020 2021 2019 2020 2021 2019 2020 2021 4.4% CAGR1,3 despite -50bps impact of Synergy delivery > expectations High cash conversion
Slide 15: Clear approach to deliver growth ambitions
Clear approach to deliver growth ambitions World class Competitive Strategy to Growth portfolio capabilities outperform ambitions 4-6% organic annual sales growth1 Expanding margin2 while investing for growth High cash conversion3 Disciplined capital allocation 1 Organic annual sales growth (see app
Slide 16: Clear approach: World class portfolio
Clear approach to deliver growth ambitions World class portfolio Category-leading brands Attractive geographic footprint Growth sector 16
Slide 17: World class portfolio of category leading brands
World class portfolio of category leading brands Oral Health VMS Pain Relief Respiratory Health Digestive Health and other £2.7bn revenue 20211 £1.5bn revenue 20211 £2.2bn revenue 20211 £1.1bn revenue 20211 £2.0bn revenue 20211 #32 #14 # 14 # 14 # 14 Digestive Health #1 Therapeutic OH3 Power brands
Slide 18: Attractive geographic footprint, well placed for growth
Attractive geographic footprint, well placed for growth #1 Germany #1 or #2 OTC/VMS Poland position in 70% of markets1 #2 Canada UK #1 MNC #3 Turkey #2 MNC US #1 China #1 MNC Global #3 in Oral Health2 #1 Italy with leading position in Therapeutic Oral Health3 India Philippines #1 MNC #1 MNC Good bal
Slide 19: A £150bn+ sector with expected 3-4% annual medium term growth
A £150bn+ sector with expected 3-4% annual medium term growth Over-the-counter medicines (OTC)3 Vitamins, Oral Health2 Minerals, Pain Respiratory Digestive Health Supplements3 Relief Health and other Global Market £25bn £46bn £15bn £22bn £42bn Size (£bn) Expected 3-4% 4-5% 2-3% medium-term market gr
Slide 20: Clear approach: Competitive capabilities
Clear approach to deliver growth ambitions Competitive capabilities Human understanding + trusted science Proven brand-building and innovation Leading route-to-market Digital connectivity 20
Slide 21: Competitive advantage
Competitive advantage Combining human understanding and trusted science Human Understanding Trusted Science Addressing real consumer everyday Deep technical and scientific talent health needs World class regulatory and medical Educating on better health solutions 100% expertise focused on Deep under
Slide 22: Proven competitive capabilities
Proven competitive capabilities Brand building Innovation Route-to-market A&P investment 20% R&D investment 3%1 of Direct relationships with of revenue, competitive and revenue, industry top quartile c.3 million HCPs2 driving growth #1 pharmacy coverage Strong mass retail and e-commerce Data and dig
Slide 23: Clear approach: Strategy to outperform
Clear approach to deliver growth ambitions Strategy to outperform Household penetration New and emerging opportunities Strong execution and financial discipline Responsible business 23
Slide 24: Significant penetration growth headroom across categories
Significant penetration growth headroom across categories Nearly 1 in 3 9 out of 10 < 50% adults have experienced sensitive teeth, people suffer from pain, but only 1 in 3 of calcium intake vs recommended level but only 1 in 3 of them purchased a them treat their pain immediately2 but only c.17% tak
Slide 25: Proven approach to drive penetration-led growth
Category-driving innovation Proven approach to drive penetration-led growth Consistent outperformance of Sensodyne Meaningful Category- and distinctive driving brands innovation >10% CAGR 2011-20211 Commercial Expert2 excellence advocacy 1 Source: GSK Consumer Healthcare segment revenue growth, Sens
Slide 26: New and emerging growth: Channel expansion
New and emerging growth: Channel expansion E-commerce – a growing channel Strong position in key markets with meaningful opportunity for growth Global e-commerce % of total sales (%) E-commerce % of sales in key markets in 2021 (%) 20 15 2x mid-teens 13 12 8 4 3 2019 2021 2025E US China UK Germany R
Slide 27: New and emerging growth: Geographic expansion
New and emerging growth: Geographic expansion HALEON BRAND EXAMPLES Gum health a major condition Among the world's fastest growing toothpaste brands1 HALEON MARKET EXAMPLES MIDDLE EAST AND AFRICA INDIA Strong double digit growth #1 multivitamins globally2 Double digit growth over the last 2 years ov
Slide 28: New and emerging growth: Portfolio expansion
New and emerging growth: Portfolio expansion Rx-to-OTC switch Accelerating consumer trends: Naturals 4 switches in the US over last 8 years, Naturals growing faster than the sector average more than any competitor Significant demand from younger consumers 2 new deals agreed driving the Rx-to-OTC acr
Slide 29: Performance underpinned by strong execution and financial discipline
Performance underpinned by strong execution and financial discipline Quality and Marketing Commercial Cost and supply chain execution execution cash discipline Manufacturing sites from Increased reinvestment into Optimising strength in key Driving +325bps adjusted 41 in 2015 to 24 in 2021 A&P +£0.2b
Slide 30: Running a responsible business, integral to all we do
Running a responsible business, integral to all we do Our purpose and brands position us to have positive impact Health Environmental inclusivity commitment Environmentally strong foundation and structurally advantaged footprint to play a positive role Well positioned to make a difference in health
Slide 31: Structurally advantaged environmental footprint
Structurally advantaged environmental footprint 2020 carbon footprint scope 1-3 (mn tonnes CO2e) 2020 Carbon intensity scope 1-3 (kg CO2e / £ revenue) Comparison vs global household and personal care peers1 Comparison vs global household and personal care peers1 197.0 3.6 3.3 61.0 2.6 42.0 36.0 1.4
Slide 32: Clear approach to deliver growth ambitions
Clear approach to deliver growth ambitions Growth ambitions 4-6% organic annual sales growth1 Expanding margin2 while investing for growth High cash conversion3 Disciplined capital allocation 1 Organic annual sales growth (see appendix for definition), in the medium term 2 Adjusted operating margin,
Slide 33: Focused plan to deliver 4-6% organic annual sales growth
Focused plan to deliver 4-6% organic annual sales growth 4-6%3 Growth categories and geographies 4.4% CAGR2 driving increasing contribution Market growth at c.2% with the Strategic building blocks: pandemic impact1 Increased penetration and channel/geography/portfolio expansion Portfolio and geograp
Slide 34: Margin expansion while investing for growth
Margin expansion while investing for growth Medium-term trajectory1 Drivers Positive mix and pricing Gross Margin COGS efficiencies A&P spend ahead of sales growth A&P A&P efficiency and effectiveness R&D investment ahead of sales growth R&D Increased returns on R&D spend Other SG&A Continued effici
Slide 35: Sustainable model driving investment for growth and attractive returns
Sustainable model driving investment for growth and attractive returns Dividend and deleverage Sustainable moderate High cash margin conversion3 expansion2 Strong investment grade balance sheet 1 Organic annual sales growth (see appendix for definition), in the medium term 2 Adjusted operating margi
Slide 36: Growth focused disciplined capital allocation
Growth focused disciplined capital allocation 1 2 3 Reinvest in Dividend M&A business Focused reinvestment to Initial dividend expected to Where commercially drive sustainable growth be at the lower end of the compelling and consistent and attractive returns 30-50% payout range1, subject with compan
Slide 37: Global leader 100% focused on consumer healthcare with clear purpose
Global leader 100% focused on consumer healthcare with clear purpose Exceptional portfolio of category leading brands with attractive footprint and competitive capabilities Strategy to outperform and run a responsible business, integral to all we do 4-6% organic annual sales growth1, sustainable mod
Slide 38: Competitive capabilities to outperform in the market
Competitive capabilities to outperform in the market Tamara Rogers / Franck Riot 28 February 2022
Slide 39: World class portfolio addressing real consumer health needs
World class portfolio of category leading brands addressing real consumer health needs Competitive advantage combining human understanding and trusted science Leading innovation capabilities driving sustainable growth through penetration and new and emerging opportunities Proven brand building backe
Slide 40: World class portfolio of category leading brands
World class portfolio of category leading brands Oral Health VMS Pain Relief Respiratory Health Digestive Health and other £2.7bn revenue 20211 £1.5bn revenue 20211 £2.2bn revenue 20211 £1.1bn revenue 20211 £2.0bn revenue 20211 #32 #14 # 14 # 14 # 14 Digestive Health #1 Therapeutic OH3 Power brands
Slide 41: Our brands address real consumer health needs
Our brands address real consumer health needs, underpinning future growth Restoring the joy Helping humanity reclaim of movement life’s small pleasures Releasing the wonders of Building every body from Freedom from pain so the Fighting for a breathing well the inside out human spirit can shine flu-s
Slide 42: Significant penetration growth headroom across categories
Significant penetration growth headroom across categories 7 out of 10 1 in 3 c.2 out of 3 people in the US agree taking vitamin & people on average have gum problems, people experience nasal symptoms such mineral supplements helps them stay like spitting blood when they brush, as congestion, but in
Slide 43: Deep human understanding provides insight to address consumer health needs
Deep human understanding provides insight to address consumer health needs Social Media Health Hub Trend spotting Ethnography Insights 100% focused on Consumer Health Shopper Science HEALTH Lab MATTERS Healthcare Consumer closeness Sensory Lab Shopper Science Lab professionals 43
Slide 44: Competitive advantage
Competitive advantage 100% focused on consumer health Human understanding Trusted Science + 44
Slide 45: Trusted Science underpinned by leading R&D capabilities
Trusted Science underpinned by leading R&D capabilities Consumer science External partnerships Weybridge Oral Health Richmond All OTC and VMS Clinical and regulatory strategies Suzhou All categories Superior consumer experience Rx-to-OTC switch Global centres Local centres 45
Slide 46: Deep scientific expertise, with 1,400 highly skilled scientists
Deep scientific expertise, with 1,400 highly skilled scientists Microbiology Product chemistry Packaging Sensory labs Fast prototyping Stability Scale up and technical transfer Making the invisible, visible Imaging 46
Slide 47: Strong scientific track record with competitive investment
Strong scientific track record with competitive investment World-class regulatory medical expertise Robust peer review science 19,000 regulatory applications and approvals >65 clinical studies involving globally in last 3 years 6,000 participants1 Presence in 85+ trade associations 296 publications1
Slide 48: Innovation strategy to drive sustainable growth
Innovation strategy to drive sustainable growth Drive penetration Expand the portfolio Disruptive new Superior science Rx-to-OTC Switch Holistic health and integrated technology Consumer preferred formats Naturals Occasions and Regimes Beyond treatment Tailored to local market Digital services Trust
Slide 49: Growth through superior science
Drive penetration Growth through superior science Human understanding Trusted Science I want to enjoy the food + Novel Product technologies I love without that jolt of enabling deeper dentin excruciating pain tubule occlusion Deep repair for sensitive teeth 49
Slide 50: Innovation tailored to local market
Drive penetration Innovation tailored to local market Human understanding Trusted Science I want what’s right for + Tailored, scientifically- me and my body, not blended ingredient everybody combinations 50
Slide 51: Portfolio expansion with Rx-to-OTC switch
Expand the portfolio Portfolio expansion with Rx-to-OTC switch Deep understanding of Dedicated teams and Successful regulatory Strong partnerships consumer experience capabilities strategies Expertise in behavioural Cross-functional team of Close collaboration with Trusted relationships with studies
Slide 52: Portfolio expansion into naturals
Expand the portfolio Portfolio expansion into ‘naturals’ Human understanding Trusted Science I want the option to use + Green science1, leveraging medicated and natural the power of nature and products to take care of seeking sustainable solutions my holistic health Soothes and cools tense, Botanica
Slide 53: Expand the offering beyond treatment
Expand the portfolio Expand the offering beyond treatment Human understanding Trusted Science I feel stuffed up, + 100% natural blend mentally and physically, of isotonic seawater I just don’t feel myself and aloe vera 3-in-1 Daily Nasal Care solution clears, moisturises and soothes your irritated n
Slide 54: Disruptive new to capture future consumer trends
Disruptive new Disruptive New to capture future consumer trends 54
Slide 55: Significant consumer need; beyond physiological
Significant consumer need; beyond physiological of sensitivity sufferers of denture wearers in the USA 70% say it takes the pleasure 44% said they feel self-conscious if out of eating/drinking1 others know they wear one5 Gum health problems can leave 80% of workers were less focused people feeling u
Slide 56: We build brands with humanity
Proven Brand Building We build brands with humanity 56
Slide 57: Transformed brand building capabilities
Transformed brand building capabilities High calibre organisation In-house expertise Data-driven marketing Strong management bench, Creative Studios content and Digital Commerce (FCP) tools significant FMCG experience production Industry 1st Digital AI creative Co-located, global hubs: Experience De
Slide 58: Highly effective, award-winning marketing
Highly effective, award-winning marketing A&P spend1 >20% of revenue 1 Advertising and Promotion spend, excludes brands divested and FX movements, 2019 - 2020 58
Slide 59: Healthcare Professionals are significant and highly valuable partners
Healthcare Professionals are significant and highly valuable partners Healthcare Professionals (HCPs) Local, known, trusted community influences Up to 75% of patients with our conditions consult HCPs1 Approximately 10m relevant HCPs globally with 52bn recommendation opportunities per year2 Considera
Slide 60: Expert marketing to HCPs a key differentiator
Expert marketing to HCPs a key differentiator and competitive advantage Key differentiator Direct relationships Proprietary field Scientific Trusted partner with c.1/3 of the 10m force, digital portal engagement drives HCPs and channels trust 60
Slide 61: World class portfolio addressing real consumer health needs
World class portfolio of category leading brands addressing real consumer health needs Competitive advantage combining human understanding and trusted science Leading innovation capabilities driving sustainable growth through penetration and new and emerging opportunities Proven brand building backe
Slide 62: Delivering attractive growth in North America
Delivering attractive growth in North America, and building winning partnerships with mass retail Lisa Paley 28 February 2022
Slide 63: Significant growth region with attractive fundamentals
Significant growth region with attractive underlying fundamentals and favourable consumer trends A market leader with category leading brands, well placed to win Positioned to outperform: Accelerating growth in Oral Health and VMS to drive penetration and leveraging innovation with local strategic b
Slide 64: North America: attractive fundamentals with c.90% revenue from the US
North America: attractive fundamentals with c.90% revenue from the US Home to: 5% of the world’s population 27% World’s GDP; US highest GDP globally Source: World Bank, 2020 64
Slide 65: North America business review
North America business review Haleon 22% 14% revenue by category £3.5bn 4,700 1 Oral Health VMS revenue employees R&D centre 37% 2 5 21% 12% 31% of global markets manufacturing Haleon served sites revenue Pain Relief Respiratory Digestive Health Health & Other Key brands All data points sourced from
Slide 66: A leader in a c.£37bn market: US
A leader in a c.£37bn market: US Market size Haleon % of total share % Key Brands #1 Sensitive Toothpaste3 brand Oral Health1 £5bn #4 Sensodyne 13% 10% share #1 Denture Care brand Polident/Poligrip Vitamins Minerals £14bn #3 #1 Multivitamin Supplement brand Supplements (VMS)2 38% 3% share Centrum #1
Slide 67: North America 3% 2-year CAGR with net COVID headwind
North America 3% 2-year CAGR with net COVID headwind Haleon portfolio revenue1 Regional adjusted (£bn) operating margin %4 Pricing / volume mix 2021 +1pt / +0.2pts Power brands revenue +6% 2019-2021 CAGR, consistently gaining share 3.5 3.7 3.5 22.9% 23.7% 23.5% Strategic local brands contributing to
Slide 68: Strategy to outperform in North America
Strategy to outperform in North America Household penetration Strategy to Accelerating growth in Oral Heath and VMS outperform Driving innovation with local strategic brands New and emerging opportunities Portfolio expansion with Rx-to-OTC switch Elevate consumer experience with data and win with th
Slide 69: Accelerating growth in Oral Health: Sensodyne US
Household penetration Accelerating growth in Oral Health: Sensodyne US Share in market Sensodyne3 19.4% 20.5% 17.9% 18.6% 17.0% 2016 2017 2018 2019 2020 1/3 of US adults suffer from Successful innovation growing Revenue CAGR c.9% over last 5yrs sensitive teeth category and penetration +3.5pts market
Slide 70: Accelerating growth in VMS: Emergen-C
Household penetration Accelerating growth in VMS: Emergen-C Emergen-C leveraging immune health and applying new formats #1 Vitamin C/ Immune brand1 The human understanding The results Emergen-C plays an important 2 year CAGR +16%2 role in immune support +3.5m new consumers to category3 Younger consu
Slide 71: Driving innovation with local strategic brands: TUMS US
Household penetration Driving innovation with local strategic brands: TUMS US TUMS Chewy recruiting a new consumer group #1 Antacid brand in US1 The human understanding The results Millennial buyers growing Tums Chewy delivered 31% 3 year in spend CAGR2 High incidence amongst +3.8M consumers new to
Slide 72: Portfolio expansion with Rx-to-OTC switch
New and emerging opportunities Portfolio expansion with Rx-to-OTC switch Industry-leading Rx-to-OTC switch over Well positioned to win the last 8 years 8 out of 10 Top 10 US OTC products May 2014 Feb 2017 originate from switch 19% US OTC growth since 2010 from switch, with more than half from GSK sw
Slide 73: Portfolio expansion with Rx-to-OTC switch: Voltaren
New and emerging opportunities Portfolio expansion with Rx-to-OTC switch: Voltaren Successful Expanded Topical Improved Launch Analgesic Category consumer access Launched May 2020 Significantly increasing Rx Product category growth2 #1 OTC Pain Relief innovation in 10 years1 c.9m prescriptions for V
Slide 74: Data to elevate consumer experience and win with the Omni-Channel Consumer
New and emerging opportunities Data to elevate consumer experience and win with the Omni-Channel Consumer Increased consumer connectivity E-commerce Expansion of channels to connect with consumers Approx.+60M consumer data collected YTD1 Right Message, Right Person, Right Time Optimised content usin
Slide 75: Strategic partnerships with mass retail to win in categories
Execution and financial discipline Strategic partnerships with mass retail to win in categories Industry Awards & Category Captaincy Aisle Leadership Accolades Brand blocks & Education VMS section breaks and 2020 navigational signage Customer Focus Award 2020 Brand blocking & Digestive Vendor & Inno
Slide 76: Winning in mass retail driven by shopper insights: Walgreens
Execution and financial discipline Winning in mass retail driven by shopper insights: Walgreens Walgreens Promoting more agile collaboration and furthering consumer insight “SPARK Lab” - Sparking ideas that lead to ground-breaking shopper engagement Digital & Data Lab: Immersive environment to suppo
Slide 77: Demonstrating excellent launch capabilities: Advil Dual Action
Execution and financial discipline Demonstrating excellent launch capabilities in market: Advil Dual Action 1st major innovation in 25 years in the OTC oral pain relief category combining the top 2 internal analgesics ingredients Strong digital Effective retail Distinctive branding activation activa
Slide 78: Running a responsible business, integral in all we do
Responsible business Running a responsible business, integral in all we do Customer ESG Oak Hill plant – US No landfill waste partnership Packaging 100% renewable electricity At all manufacturing sites Partnerships to increase Plastic free packaging for health inclusivity specialist toothbrushes, To
Slide 79: Significant growth region with attractive fundamentals
Significant growth region with attractive underlying fundamentals and favourable consumer trends A market leader with category leading brands, well placed to win Positioned to outperform: Accelerating growth in Oral Health and VMS to drive penetration and leveraging innovation with local strategic b
Slide 80: Delivering attractive growth in Asia Pacific
Delivering attractive growth in Asia Pacific, and winning with digital in China Keith Choy 28 February 2022
Slide 81: Asia Pacific, highly attractive growth opportunity
Asia Pacific, highly attractive growth opportunity Market leader with a focused brand portfolio Positioned to outperform: Accelerating Oral Health and VMS growth, leadership in Pain Relief and leveraging local strategic brands and category-driving innovation to drive household penetration New and em
Slide 82: Asia Pacific: a diverse region with significant growth
Asia Pacific: a diverse region with significant growth Home to: 51% of the world’s population; largest region by population 36% of the world’s GDP; fastest growing region Source: World Bank, 2020 82
Slide 83: Asia Pacific business overview
Asia Pacific business overview Haleon revenue by 29% 29% £2.1bn 5,500 1 Revenue category revenue employees R&D centre 60% Emerging Oral Health VMS Markets 22% 5 6 40% of global Business Units manufacturing Developed Haleon serving sites Markets 20% 8% 14% revenue 22 markets Pain Relief Respiratory D
Slide 84: A leader in a c.£56bn high growth market: APAC
A leader in a c.£56bn high growth market: APAC Market size HALEON % of total share % Key Brands Oral Health £10bn #5 Sensitive Toothpaste brand3 18% 6% share #1 Sensodyne VMS £19bn #1 #1 Denture Care brand 34% 3% share Polident #1 Multivitamin brand Pain Relief £5bn #1 Centrum 9% 11% share #1 Calciu
Slide 85: Well placed for growth; particularly in China and India
Well placed for growth; particularly in key markets of China and India China India 20+ regional offices 4 million retail stores 2 manufacturing sites 1 customer centre Route-to-market largely through general trade and pharmacy 1 R&D centre Hindustan Unilever Commercial Varied route-to-market with ph
Slide 86: APAC 8.2% CAGR with margin expansion
APAC 8.2% CAGR with margin expansion HALEON portfolio revenue1 Regional adjusted operating (£bn) margin %3 2.1 Pricing / volume mix 2021 +2pts / +7pts 1.9 2.0 Consistent strong volume growth driven by VMS (Centrum/ Caltrate), Oral Care 21.5% (Sensodyne) and Pain (Panadol) 18.3% 18.4% Targeted A&P sp
Slide 87: Strategy to outperform in Asia Pacific
Strategy to outperform in Asia Pacific Household penetration Strategy to Accelerate growth in Oral Health and VMS outperform Solidify leadership in Pain Relief Extend leadership of local strategic brands Category-driving innovation New and emerging opportunities Channel expansion through ecommerce a
Slide 88: Accelerate growth in Oral Health: Sensodyne India
Household penetration Accelerate growth in Oral Health: Sensodyne India Delivering strong results Driving penetration through innovation and consumer focused campaigns Penetration over 8 years1 10.7% Meaningful and Category-driving distinctive brands innovation 4.9% driving sensitivity needs based i
Slide 89: Solidify leadership in Pain Relief: Panadol Australia
Household penetration Solidify leadership in Pain Relief: Panadol Australia Trusted leader in Pain Relief, Recommended by Culturally-relevant in market for >60 years Healthcare Professionals communication Five year CAGR (2017-2021) outpacing category +1.8%1 Post-Vaccination Care Australia's most Ext
Slide 90: Extend leadership of local brands: Caltrate China
Household penetration Extend leadership of local brands: Caltrate China, Total Mobility Solution Opportunity in Omni-channel Innovation bone & joint health brand building backed by science Calcium deficiency risk Award-winning Guqi Women Caltrate for gender: best selling rate c.97%1 campaign gender
Slide 91: Extend leadership of local brands: Eno India
Household penetration Extend leadership of local brands: Eno India, Rural Markets Continued growth to Targeted culturally Differentiated claims solidify leadership position relevant communication backed by science 2 Year CAGR Digital platforms and local Top of Mind Brand Recall 2019-21 +10%1 languag
Slide 92: Category-driving innovation: Centrum
Household penetration Category-driving innovation: Centrum Leveraging human understanding and trusted science Achieving multivitamin growth Enhanced benefits expansion Premiumisation & Personalisation Addressing specific consumer benefit needs Australia Benefits Blend Life-stage: +83% incremental to
Slide 93: Channel expansion through e-commerce and data in China
New and emerging opportunities Channel expansion through e-commerce and data-driven consumer connectivity in China Increasing Healthcare Professionals Accelerating e-commerce and Consumer connectivity 20% +41% Proprietary engagement platforms Omni-channel Consumer Relations Management E-commerce % s
Slide 94: Delivering integrated digital campaigns in China
New and emerging opportunities Delivering integrated digital campaigns in China 1st Sensodyne challenge Centrum precision Voltaren collab with leading on TikTok1 marketing2 social sports platform KEEP3 TikTok T-mall KEEP Posture APP – engagement & education Online & offline content & experience with
Slide 95: Commercial execution in the market to drive outperformance
Execution and financial discipline Commercial execution in the market to drive outperformance Net Revenue Customer Retail execution Strong go to market Management Management Optimise revenue for CH Partnerships with shopper Strong brand and category Maximising shopper reach and retailers and retaile
Slide 96: Running a responsible business, integral to all we do
Responsible business Running a responsible business, integral to all we do Suzhou manufacturing No Waste to landfill Recycled packaging Air purifiers site - China 50% lower water use At all manufacturing Sensodyne cartons using Installed air purifiers at in 2020 vs 20091 sites2 100% recycled board i
Slide 97: Asia Pacific, highly attractive growth opportunity
Asia Pacific, highly attractive growth opportunity Market leader with a focused brand portfolio Positioned to outperform: Accelerating Oral Health and VMS growth, leadership in Pain Relief and leveraging local strategic brands and category-driving innovation to drive household penetration New and em
Slide 98: Delivering attractive growth in EMEA & LATAM
Delivering attractive growth in EMEA & LATAM and leveraging leadership in Pharmacy Filippo Lanzi 28 February 2022
Slide 99: Leader in EMEA & LATAM, a region with compelling opportunities
Leader in EMEA & LATAM, a region with compelling opportunities for growth Attractive and balanced growth profile of Developed and Emerging Markets Positioned to outperform: Expanding Therapeutic Oral Health and increasing relevance of OTC brands to drive household penetration New and emerging opport
Slide 100: EMEA & LATAM: Scale, diversity and opportunity
EMEA & LATAM: Scale, diversity and opportunity Home to: 44% of the world’s population 37% of the world’s GDP Source: World Bank, 2020 100
Slide 101: EMEA & LATAM business overview
EMEA & LATAM business overview Haleon revenue by 34% 10% £3.9bn 10,600 1 Revenue category revenue employees1 R&D centre 44% Oral Health VMS Emerging c.150 Markets 41% markets served 13 56% of global manufacturing Developed 28% 14% 14% Haleon revenue 7 sites Markets Business Units Pain Relief Respira
Slide 102: A leader in a c.£56bn growing market: EMEA & LATAM
A leader in a c.£56bn growing market: EMEA & LATAM Market size Haleon % of total share % Key Brands Oral Health1 £10bn #3 Sensitive Toothpaste brand3 18% 15% share #1 Sensodyne VMS2 £13bn #3 #1 Denture Care brand 23% 4% share Polident #1 VMS brand Pain Relief2 £7bn #1 Centrum 12% 15% share #1 OTC br
Slide 103: EMEA & LATAM 3.9% 2-year CAGR with consistent margin expansion
EMEA & LATAM 3.9% 2-year CAGR with consistent margin expansion Haleon portfolio revenue1 Regional adjusted (£bn) operating margin %4 Pricing / volume mix 2021 +3pts / +1pt Pricing driven by net revenue 3.9 3.9 3.8 24.8% management initiatives 19.1% 21.1% Reshaped portfolio with 2019 2020 2021 2019 2
Slide 104: Strategy to outperform in EMEA & LATAM
Strategy to outperform in EMEA & LATAM Household penetration Strategy to Expand Therapeutic Oral Health by driving further category growth outperform Increase relevance of our OTC brands New and emerging opportunities Unlock VMS growth by leveraging scale and innovation Maximise the full potential o
Slide 105: Leading in Therapeutic Oral Health
Household penetration Leading in Therapeutic Oral Health, driving category growth in EMEA & LATAM Therapeutic driving growth in Toothpaste Haleon leading the Therapeutic growth £5bn1 £0.9bn1 Growing c. Driving c. Therapeutic 30% Therapeutic 81% Mainstream3 of the Therapeutic growth2 Mainstream 70% M
Slide 106: Expanding the Therapeutic Oral Health segment with Sensodyne
Household penetration Expanding the Therapeutic Oral Health segment with Sensodyne Penetration opportunity Proven approach to drive growth and penetration Significant opportunity Meaningful and Category-driving distinctive brands innovation Nearly 1 in 3 have experienced tooth driving sensitivity Of
Slide 107: Increasing relevance of our Pain Relief brands
Household penetration Increasing relevance of our Pain Relief brands Category highly relevant to consumers Haleon leading positions in key segments £6.7bn market1 £1bn+ revenue3 >90% 18+ experience pain in a year2 #1 Topical Pain Relief1 c.30% share in topical pain relief c.2x> #3 in total pain 1 in
Slide 108: Driving growth across demographics with Voltaren
Household penetration Driving growth across demographics and need states with Voltaren Penetration opportunity Proven approach to drive growth and penetration Across demographics Meaningful and Category-driving and need states distinctive brands innovation Current Voltaren share Across touchpoints i
Slide 109: Strong position in VMS with global and local brands
New and emerging opportunities Strong position in VMS with global and local brands #1 #1 #2 Tonics & cure alls, Vit B Brand, Italy1 Probiotics, Russia1 Germany1 #1 VMS EMEA & LATAM #1 #2 Calcium, Pakistan2 Minerals, Italy1 1 Source: N. Hall DB6 Consumer Healthcare database (MSP), store and internet
Slide 110: Unlocking VMS growth by leveraging scale and innovation
New and emerging opportunities Unlocking VMS growth by leveraging scale and innovation Leveraging scale across markets Innovating across formats and need states Centrum Local brands Top 5 markets Available in 1/3rd c.18% c.60% of of markets served 2019-2021 revenue CAGR2 revenue1 1 Haleon revenue 20
Slide 111: Maximise the full potential of our Emerging Markets presence
New and emerging opportunities Maximise the full potential of our Emerging Markets presence 4 out of 7 Focused Business Units Extensive supply network c.70% revenue from Power brands Selective leverage of local strategic brands OTC+VMS1 OH2 44% revenue GrandPa Bifiform ENO in Emerging Markets #1 OTC
Slide 112: MEA: Capitalising on leadership and potential
New and emerging opportunities MEA: Capitalising on leadership and potential A large and diverse Business Unit Outperforming Across channels Double digit revenue growth over the last 2 years2 growing 2X market3 >30 Countries c.£0.7bn revenue 20212 1.9bn Consumers1 >80% weighted distribution4 coverag
Slide 113: Leading positions and proven capabilities to leverage MEA portfolio
New and emerging opportunities Leading positions and proven capabilities to leverage MEA portfolio Strong positions #1 Pain Relief1 #1 Respiratory #2 Oral Health2 #2 VMS1 Health1 Portfolio leverage c.50% revenue Expanding the portfolio Leveraging local supply Strengthening route to drive innovation
Slide 114: Strong route-to-market and commercial excellence across all channels
Execution and financial discipline Strong route-to-market and commercial excellence across all channels Pharmacy Mass market E-commerce c.60% of revenue1 c.35% of revenue1 5% of revenue1 Haleon #1 Strong reach with Growing at c.30% per year1 >80% weighted distribution3 1 Company analysis based on ex
Slide 115: Leading in Pharmacy through continuous focus on commercial excellence
Execution and financial discipline Leading in Pharmacy through continuous focus on commercial excellence Haleon leader in Pharmacy, #1 channel c.60% of total revenue1 > 85% weighted distribution2 c.1.6x size of #2 OTC competitor2 Leading Account Management Strong Store Execution at Scale Distinctive
Slide 116: Running a responsible business, integral to all we do
Responsible business Running a responsible business, integral to all we do GSK CH 1st carbon Carbon Greener solutions Water neutral brush in Germany Sustainably sourced Sourcing model change Cape Town site water Plastic free packaging woodchips supply 77% in Turkey reducing CO2 consumption down and
Slide 117: Leader in EMEA & LATAM, a region with compelling opportunities
Leader in EMEA & LATAM, a region with compelling opportunities for growth Attractive and balanced growth profile of Developed and Emerging Markets Positioned to outperform: Expanding Therapeutic Oral Health and increasing relevance of OTC brands to drive household penetration New and emerging opport
Slide 118: Running a responsible business, integral to all we do
Running a responsible business, integral to all we do Teri Lyng 28 February 2022
Slide 119: Our purpose and brands position us to have positive impact
Our purpose and brands position us to have positive impact Environmentally strong foundation and structurally Environmental Health advantaged footprint to play a positive role commitment inclusivity Strongly positioned to make a difference in health inclusivity Supporting colleagues’ and communities
Slide 120: Our purpose
Our purpose: To deliver better everyday health with humanity Footer
Slide 121: Our brands position us to have positive impact
Our brands position us to have positive impact
Slide 122: Structurally advantaged environmental footprint
Structurally advantaged environmental footprint 2020 Carbon intensity scope 1-3 Plastic Packaging Footprint (KTonnes)1 Significantly lower carbon (kg CO2e / £ revenue)1 footprint and intensity (scope 1-3) versus peers 3.6 780 3.3 690 2.6 Significantly lower plastic packaging footprint 1.4 relative t
Slide 123: Tackling environmental issues impacting everyday health
Tackling environmental issues impacting everyday health Carbon Packaging Trusted ingredients, Operational Water sustainably sourced waste Solar power at 12 Key Oral Health brands 80% glycerine All sites achieved 29% reduction of 24 manufacturing in Europe packaged in (palm oil derived) zero to landf
Slide 124: Our Environmental Commitments
Our Environmental Commitments Tackling the environmental issues affecting everyday health Trusted ingredients, Carbon Packaging sustainably sourced Reduce our net Scope 1 & 2 carbon Reduce our use of virgin petroleum- Have all agricultural, forest and emissions by 100% by 2030 based plastic by 1/3rd
Slide 125: Embedding environmental sustainability across our business
Embedding environmental sustainability across our business Incorporating sustainability Amplifying positive impact into our brands through strategic partnerships 125
Slide 126: Tackling inclusivity barriers standing in the way of everyday health
Tackling inclusivity barriers standing in the way of everyday health Social exclusion: Self-care access: Bias and stigma Individuals increasingly prevent access to want to proactively better everyday health manage their own health Health inclusivity is Many feel ill-equipped or reducing globally lac
Slide 127: Our health inclusivity commitments
Our health inclusivity commitments We empower millions of people a year to be more included in opportunities for better everyday health 50 million people a year by 2025 Shaping policies, Educating and empowering Leveraging brands attitudes and beliefs to have a positive impact To help people be, and
Slide 128: Shaping policies: Inclusivity Health Index with The Economist Group
Shaping policies, attitudes and beliefs: Inclusivity Health Index with The Economist Group Key program elements New interactive inclusivity Accessible to investors health index launch in July and consumers Core Research Increase inclusivity Results to help shape Interactive Index Hub awareness and c
Slide 129: Educating and empowering people to take better self care
Educating and empowering people to take better self care Consumers Healthcare professionals Thought Leadership Brand programs HCP engagement to Active participation to drive to educate provide insights and tools increased knowledge 129
Slide 130: Leveraging our brands: Otrivin
Leveraging our brands To have a positive impact on everyday health: Otrivin Air pollution affects Supporting people almost everyone to breathe their best 130
Slide 131: Leveraging brands to have a positive impact
Leveraging brands to have a positive impact Fighting for a flu safe world 131
Slide 132: Committed to positively contributing to society
Committed to positively contributing to society Partnerships Supply Chain Our People Smile Train – Responsible sourcing Strong employee safety helping thousands capabilities across the organisation receive cleft treatment Increasing supply chain transparency and Ambitious targets for Inclusion, moni
Slide 133: Committed to building strong corporate governance
Committed to building strong corporate governance Board Reporting and Conduct Operational Governance Sir Dave Lewis, Chairman Preparing for best practice Business Performance and Designate announced, further reporting and disclosure Responsible Business Scorecards board and committee appointments un
Slide 134: Our purpose and brands position us to have positive impact
Our purpose and brands position us to have positive impact Environmentally strong foundation and structurally Environmental Health advantaged footprint to play a positive role commitment inclusivity Strongly positioned to make a difference in health inclusivity Supporting colleagues’ and communities
Slide 135: Committed to delivering attractive and sustainable growth
committed to delivering attractive and sustainable growth, maximising shareholder value Tobias Hestler 28 February 2022
Slide 136: Strongly positioned for growth: portfolio reshaped
Strongly positioned for growth: portfolio reshaped optimised operating model, lean cost base, capabilities improved delivering momentum while investing for growth Strong financial performance and sustainable model: strong medium term outlook: organic annual sales growth of 4-6%1 per annum sustainabl
Slide 137: Portfolio reshaped, well positioned for growth
Portfolio reshaped, well positioned for growth 2015 2021 Increase Contribution From % revenue from Power Brands 44% 58% Higher Growth Power Brands Exit Lower Growth Brands Divested £1bn 90% revenues1 divested brands had since 20191 negative growth2 % of revenue Higher Growth Categories in VMS 1% 16%
Slide 138: Optimised operating model, lean cost base and capabilities improved
Optimised operating model, lean cost base and capabilities improved Footprint Optimisation A&P Optimisation Operating model and capabilities Localisation of R&D 41 24 2x c.50% 68% c.800 20151 2021 Digital media spend2 % of total3 Realigned roles7 % of local project US8 Manufacturing sites “Fewer, Bi
Slide 139: Delivering momentum while investing for growth
Delivering momentum while investing for growth 20191 2020 2021 £ million Actual Actual Unaudited Revenue 8,480 9,892 9,545 Revenue2 CAGR 4.4% (CER) despite net COVID headwind Healthy balance of price and volume Haleon portfolio growth2 4.9% 3.9% Adjusted gross profit 5,273 6,173 6,002 Strong focus o
Slide 140: Sustainable model driving investment for growth and attractive returns
Sustainable model driving investment for growth and attractive returns Dividend and deleverage Sustainable moderate High cash margin1 conversion3 expansion Strong investment grade balance sheet 1 Organic annual sales growth (see appendix for definition), in the medium term 2 Adjusted operating margi
Slide 141: Focused plan to deliver 4-6% organic annual sales growth
Focused plan to deliver 4-6% organic annual sales growth 4-6%3 4.4% CAGR2 Market growth at c.2% with the Growth categories and geographies pandemic impact1 driving increasing contribution Portfolio and geographic footprint Strategic building blocks: reshaped and well positioned for growth Increased
Slide 142: Top line – outperforming the market growing by 4.4% CAGR
Top line – outperforming the market growing by 4.4% CAGR Haleon portfolio revenue growth (%)3 4.4% CAGR3,4 Growth in digital revenue +0.4bn 4.9 3.9 Disciplined and increasing A&P investment +0.2bn1 +2.2% price2 Healthy balance of price and volume +1.8% volume2 2020 2021 Market growth c.2% CAGR4 1 In
Slide 143: Outperformance in high growth categories drives momentum
Outperformance in high growth categories drives momentum 2021 2019-2021 2019-2021 COVID Haleon portfolio impact on total Performance revenue revenue growth1 revenue growth1 vs. market4 Oral Health £2.7bn 5.2% ~ + c.60bps VMS £1.5bn 11.5% Tailwind Pain Relief £2.2bn 6.3% ~ – c.110bps Respiratory Heal
Slide 144: Regional performance in high growth geographies drives momentum
Regional performance in high growth geographies drives momentum 2021 2019-2021 2019-2021 COVID revenue Haleon portfolio impact on region revenue growth1 revenue growth1 North America £3.5bn 3.0% (1%) APAC £2.1bn 8.2% +1% EMEA & LATAM £3.9bn 3.9% (1%) Total £9.5bn 4.4% - Emerging markets Developed ma
Slide 145: Growth opportunities across all categories
Growth opportunities across all categories Penetration, premiumisation and HCP engagement Oral health Continued innovation 2011-21 CAGR1: >10% Parodontax geographic expansion Penetration and momentum (US and China) VMS Centrum Brand innovation #1 Global Local growth Refocus on Centrum & local strate
Slide 146: Growing exposure to high growth digital channel
Growing exposure to high growth digital channel E-commerce – a growing channel Strong position in key markets with meaningful opportunity for growth Global e-commerce sales (£bn) E-commerce % of sales in key markets in 20211 (%) 0.8 20 15 0.6 13 12 0.4 c.3 2019 2020 2021 US China UK Germany Rest of
Slide 147: High level drivers of delivering medium term sales outlook
High level drivers of delivering medium term sales outlook Share of group Expected organic sales growth1 sales by 2025 Oral Health Category mid to high single digit c.50% and VMS Emerging Geography high single digit high 30s % markets Channel E-commerce double digit mid-teens % Rx-to-OTC Portfolio +
Slide 148: Sustainable model driving investment for growth and attractive returns
Sustainable model driving investment for growth and attractive returns Dividend and deleverage Sustainable moderate High cash margin conversion3 expansion2 Strong investment grade balance sheet 1 Organic annual sales growth (see appendix for definition), in the medium term 148 2 Adjusted operating m
Slide 149: Track record of delivering adjusted operating margin expansion
Track record of delivering adjusted operating margin expansion while investing for growth c.0.5% c.2% 22.8% c.5% Healthy balance of price & volume growth 19.5% c.1% c.2% A&P invested1 ahead Disciplined and increasing A&P investment £0.2bn1 of sales growth c.6% CAGR 2019-2021 Synergies & restructurin
Slide 150: Focused investment for top-line growth through margin efficiency
Focused investment for top-line growth through margin efficiency Key ongoing drivers of adjusted operating margin Continued investment in revenue growth Manufacturing, Net price and supply chain and product mix Cost discipline Re-investment in brands procurement optimisation efficiencies Favourable
Slide 151: Operating model driving modest annual margin expansion in the medium term
Operating model driving modest annual margin expansion in the medium term, in 2022 increased synergies largely offsetting standalone costs1 Favourable volume and mix A&P investment ahead of sales Operating leverage (power brand outperformance) growth (consistent with trend Pricing including full ben
Slide 152: Sustainable moderate margin expansion in medium term
Sustainable moderate margin expansion1 in medium term Medium-term 2021 trajectory1 Future drivers Positive mix, high margin Power Brands Gross Margin2 62.9% COGS efficiencies to partially offset cost inflation Pricing benefits & Net Revenue Management programs Reinvestment in A&P ahead of sales grow
Slide 153: Sustainable model driving investment for growth and attractive returns
Sustainable model driving investment for growth and attractive returns Dividend and deleverage Sustainable moderate High cash margin2 conversion3 expansion Strong investment grade balance sheet 1 Organic annual sales growth (see appendix for definition), in the medium term 153 2 Adjusted operating m
Slide 154: Strong cash flow supportive of capital allocation priorities
Strong cash flow supportive of capital allocation priorities Working capital discipline: Inventory and debtor day reduction since 2019 £bn, AER 2020 2021 Restructuring and separation costs £1.3bn largely Free cash flow 2.0 1.2 offset by proceeds from divestments of £1.1bn Less separation, restructur
Slide 155: Strong capital base with stable capex
Strong capital base with stable capex Capex spend per annum (£bn; 2019-2021) Capex as % of sales Ongoing investment in reduced manufacturing and R&D footprint with capacity to support future growth 2.9% 3.2% 3.1% Investment in automation and digitalisation 0.32 0.30 of the supply chain 0.24 Investme
Slide 156: Strong cash flow supporting capital allocation priorities
Strong cash flow supporting capital allocation priorities (£bn) 2020 2021 Future cash flow drivers Profit before 1.6 1.6 Interest & Tax 2021 more indicative for short term based on expected adjusted Cash Tax (0.6) (0.3) ETR of 22-23% Interest & NCIs1 (0.0) (0.0) Interest costs initially c.£0.2bn Pay
Slide 157: Sustainable model driving investment for growth and attractive returns
Sustainable model driving investment for growth and attractive returns Dividend and deleverage Sustainable moderate High cash margin2 conversion3 expansion Strong investment grade balance sheet 1 Organic annual sales growth (see appendix for definition), in the medium term 157 2 Adjusted operating m
Slide 158: Growth focused disciplined capital allocation
Growth focused disciplined capital allocation 1 2 3 Reinvest in Dividend M&A business Focused reinvestment to Initial dividend expected to Where commercially drive sustainable growth be at the lower end of the compelling and consistent and attractive returns 30-50% payout range1, subject with compan
Slide 159: Medium term outlook
Medium term Organic annual sales growth of 4-6%1, ahead of market outlook Sustainable moderate adjusted operating margin expansion2 per annum High and stable cash conversion Delivering net debt / EBITDA3 <3x by the end of 2024 Initial dividend expected to be at the lower end of the 30-50% payout ran
Slide 160: Strongly positioned for growth: portfolio reshaped
Strongly positioned for growth: portfolio reshaped optimised operating model, lean cost base, capabilities improved delivering momentum while investing for growth Strong financial performance and sustainable model: strong medium term outlook: organic annual sales growth of 4-6%1 per annum sustainabl
Slide 161: Thank you
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Slide 162: Appendix
Appendix HAL=ON 162
Slide 163: Assumptions and cautionary statement regarding forward-looking statements
Assumptions and cautionary statement and regarding forward-looking statements GSK cautions investors that any forward-looking statements or projections made by GSK, including those made in this announcement, are subject to risks and uncertainties that may cause actual results to differ materially fr
Slide 164: Haleon financial reporting considerations
Haleon financial reporting considerations1 IFRS Income Statement Reportable segments North EMEA & Corporate & America LatAm APAC Unallocated 2021 £m 2021 £m 2021 £m 2021 £m Revenue2 3,525 Revenue2 3,877 Revenue2 2,143 Adj. Op. Profit (77) Adj. Op. Margin 23.5% Adj. Op. Margin 24.8% Adj. Op. Margin 2
Slide 165: Comparison of Haleon to GSK segment financials
Comparison of Haleon to GSK segment financials Whilst a part of GSK, Haleon has historically been reported as an operating segment under IFRS 8 in GSK’s annual report and interim financial reporting (the “CH Segment”). The financial information presented above has been prepared in a manner consisten
Slide 166: Revenue Reconciliation
Revenue Reconciliation1 Haleon portfolio growth reflects the growth of Haleon’s brands during the track record period 2019 2020 2021 2020 2021 Revenue £bn 8.5 9.9 9.5 Revenue growth % 16.7% (3.5%) Growth % n/a 16.7% (3.5%) Organic growth adjustments of which: (16.6%) 2.7% Growth CER % n/a 19.3% 1.0%
Slide 167: IFRS and Adjusted Income Statement
IFRS and Adjusted Income Statement1 2020 (£m) 2021 (£m) Separation Net Intangible Separation Net Intangible Transaction and Amortisation Transaction and IFRS Amortisation Restructuring Related Admission Disposal Adjusted IFRS and Restructuring Related Admission Disposal Adjusted Result and Impairmen
Slide 168: Haleon divestments
Haleon divestments Brands divested 2019-20213 2019 Bialcol, Ceridal, Cibalgina, Eurax, Keri, Magnesia Bisurada4, Oilatum, Revenue of divested brands Polytar/Tarmed, Prevacid, Savlon, Tixylix (£bn; 2019-2021)1 2020 0.52 Alavert, Anbesol, Argus, Boost5, Breathe Right, Capent, Cetebe, Cholinex, Clindo,
Slide 169: Glossary
Glossary Adjusted Operating Profit is defined as operating profit less Adjusting Items as A number of Adjusted measures are used to report the performance of our defined above. business which are non-IFRS measures. Adjusted results, CER and other non-IFRS Compound Annual Growth Rate (CAGR) represent
Slide 170: Competitive capabilities to outperform in the market: Information sources
Competitive capabilities to outperform in the market Information sources Slide: Significant penetration growth headroom across categories Slide: Significant consumer need; beyond physiological 7 out of 10 people in the US agree taking vitamin and mineral supplements In clinical studies, 70% say sens
Slide 171: Competitive capabilities to outperform in the market: Information sources
Competitive capabilities to outperform in the market Information sources Slide: Health Care Professionals are significant and highly valuable partners ~75% of patients with our conditions consult HCPs Source: Insites-Consulting; RGM consumer surveys in 12 markets (Canada, USA, Brazil, UK, Germany, P
Slide 172: Executing portfolio strategy to build focused scale and leadership
Executing portfolio strategy to build focused scale and leadership 2015 2018 2020 2022 2 JV formation Buy out JV formation Divest Full buy out Exit of non- 2012 of Novartis strategic categories from JV to Unilever1 Divest Non-strategic OTC 2013 2019 2021 Divest Exit of beverages: Lucozade and Ribena
Slide 173: Favourable underlying sector growth fundamentals
Favourable underlying sector growth fundamentals Unmet consumer needs Increasing pressure on Ageing public healthcare population systems Emerging middle class Increased consumer focus on health and wellness 173
Slide 174: World class portfolio of category-leading brands
World class portfolio of category-leading brands Digestive Health Oral Health VMS Pain Relief Respiratory Health and other £2.7bn revenue 20211 £1.5bn revenue 20212 £2.2bn revenue 20212 £1.1bn revenue 20212 £2.0bn revenue 20212 #32 #14 #1 4 #1 4 #1 4 #1 Therapeutic OH3 Digestive Health Power brands
Slide 175: #1 in Therapeutic Oral Health
#1 in Therapeutic Oral Health Creating a premium, fast growing category The world’s leading Among the world’s The world’s leading sensitivity toothpaste1, fastest growing global denture care brand, and #2 overall toothpaste2 toothpaste brands3 sold across 60+countries2 1 Company analysis (2020) 2 So
Slide 176: #1 in Vitamins, Minerals and Supplements
#1 in Vitamins, Minerals and Supplements Enabling proactive everyday health The world’s leading and #1 vitamin C and Leading brand for the most clinically immunity bone and joint studied multivitamins1 supplement in the US supplements in China Source: N. Hall (2020) 1 Company analysis for “most clin
Slide 177: #1 in Pain Relief
#1 in Pain Relief Leader across ingredients and formats The world's leading The world’s #2 pain Leading systemic pain topical pain relief brand relief brand in the US relief brand outside and #3 largest OTC and #4 largest OTC the US – sold across brand globally brand globally over 90 countries Sourc
Slide 178: #1 in Respiratory Health
#1 in Respiratory Health Presence across key conditions Europe’s #2 and North The world's leading Leading allergy remedy America’s #3 oral cold topical decongestant in the USA and flu brand – in over 50 brand markets Source: N. Hall (2020) 178
Slide 179: #1 in Digestive Health
#1 in Digestive Health Well-loved brands and consumer preferred formats Leading OTC heartburn #1 OTC heartburn treatment treatment in the USA with in India and Brazil with more more than 90 years heritage than 100 years of heritage Source: N. Hall (2020) 179