Gsk Plc · LSE:GSK
Gsk — J.P. Morgan Healthcare Conference 2022
21 slides from Gsk's conference presentation, January 2022
Slide 1: New GSK: new ambitions for patients, shareholders and our people
New GSK: new ambitions for patients, shareholders and our people Emma Walmsley, CEO J.P.Morgan Healthcare Conference | January 2022
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: New GSK: new ambitions for patients, shareholders and our people
New GSK: new ambitions More than 5% sales and 10% adjusted operating profit CAGR 2021-26 Progressive dividend policy for patients, shareholders and Pipeline-driven growth to more than £33bn sales by 2031 our people Prioritise Vaccinesand Specialty Medicines, maximise scientific opportunities in prev
Slide 4: Delivering major strategic transformation and cultural change
Delivering major strategic transformation and cultural change 2017 focus areas Today Commercial Improved Strengthened Transformed R&D pipeline Innovation performance R&D commercial execution, and whilst and pipeline execution portfolio focus, productivity investing cost discipline in R&D Performance
Slide 5: Significant scale of change and delivery since 2017
Significant scale of change and delivery since 2017 Improved performance Strengthened R&D and Transformed whilst investing in R&D pipeline commercial execution 2017 2020 9M 2021 – 13 approvals since 2017 - top quartile – £10bn annual new and specialty sales Sales £30.2bn £34.1bn £24.6bn – R&D spend
Slide 6: Ready to separate, unlock the potential of both new businesses and maximise shareholder value
Ready to separate, unlock the potential of both new businesses and maximise 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
Slide 7: New world leader in Consumer Healthcare
New world leader in Consumer Healthcare #1 £10bn +4% 22.1% Overall Consumer Healthcare Annual 2020 Net sales 2020 Operating player globally Net Sales 1 growth 2020 2 Margin3 5 20 c. 100 23k Global categories Consumer Healthcare Markets Employees with #1 position4 brands >£100m sales served globally5
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 Strengthen New GSK balance sheet − Monetise up to 20% retained to strengthen New GSK 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 operating profit CAGR 2031 More than £33bn sales ambition With metrics and incentives strongly aligned to shareholder value creation All outlooks, targets, ambitions and expectations regarding future performance and the
Slide 11: Investing to drive a step-change in growth and business mix
Investing to drive a step-change in growth and business mix 2021-26 sales growth CAGR Changing sales mix Vaccines and Specialty Illustrative Medicines prioritised Vaccines: high single-digit % Specialty Medicines: double-digit % General Medicines optimised General Medicines: broadly stable 2017 2021
Slide 12: Maximising opportunities in prevention and treatment
Maximising opportunities in prevention and treatment Increasing number of …provides significant synergies across opportunity and advantage prevention and treatment… for New GSK – Immune dysfunction – R&D focus on the science of immune system, contributes human genetics and advanced technologies to p
Slide 13: Vaccines and Specialty high potential late-stage opportunities add to current growth drivers
Vaccines and Specialty high potential late-stage opportunities add to current growth drivers in key therapeutic areas Infectious Immunology / HIV Oncology Opportunity driven Diseases Respiratory Approved/marketed Shingrix Dovato Zejula Benlysta Bexsero Cabenuva Blenrep Nucala Menveo Apretude1 Jemper
Slide 14: 2021 late-stage pipeline news
2021 late-stage pipeline news Continued progress across medicines Shingrix Herpes zoster, immunocompromised Approval (US) Infectious Diseases Priorix Measles, mumps and rubella Regulatory submission (US) Menveo Liquid version Regulatory submission (US) Xevudy COVID-19 Emergency Use Authorization (US
Slide 15: Upcoming select late-stage R&D milestones
Upcoming select late-stage R&D milestones H1 2022 H2 2022 Regulatory decisions Cabenuva (8 weekly dosing) MMR - vaccine (US) Menveo liquid Regulatory Rotarix (liquid US) Blenrep - DREAMM-3 (3L+ multiple myeloma) daprodustat - ASCEND (anaemia due to chronic submissions kidney disease) Late-stage read
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 - dolutegravir + LA HIV combos + Cab PrEP + Blenre
Slide 17: Meaningful margin expansion from 2022
Meaningful margin expansion from 2022 Adjusted Operating Margin >30% by 2026 >30% More than 10% Adjusted Operating Profit CAGR 2021-26 Mid Cost initiatives: – £0.5bn restructuring savings 2018-21 20s % – £1.0bn Future Ready savings expected by 2023 – Approx. 1/3 of total savings reinvested in growth
Slide 18: Improved capital position supports growth investment
Improved capital position supports growth investment Capital allocation priorities Vaccines Strong operating Strengthen pipeline cash flow (incl. bolt-on and in-licensing business development) Product launches Specialty Medicines + Sustainability Strengthened balance General Medicines sheet Progress
Slide 19: ESG to deliver sustainable performance and contribute to long-term growth
ESG to deliver sustainable performance and contribute to long-term growth Health impact – #1 in Dow Jones Sustainability Index – #1 in Access to Medicines Index Trust for all stakeholders – Committed to targets of net zero on carbon and net positive on nature by 2030 Reduced risk to operations – New
Slide 20: New GSK: new ambitions for patients, shareholders and our people
New GSK: new ambitions More than 5% sales and 10% adjusted operating profit CAGR 2021-26 Progressive dividend policy for patients, shareholders and Pipeline-driven growth to more than £33bn sales by 2031 our people Prioritise Vaccinesand Specialty Medicines, maximise scientific opportunities in prev
Slide 21: Q&A
Q&A 21