Gsk Plc · LSE:GSK

Gsk — GlaxoSmithKline — Q3 2002 Earnings Presentation

18 slides from Gsk's earnings presentation, Oct 23, 2002

  1. Slide 1: Third Quarter Results Presentation to Investors/Analysts

    Third Quarter Results Presentation to Investors/Analysts 23rd October 2002

  2. Slide 2: CEO's Remarks

    © a CEO’s Remarks JP Garnier

  3. Slide 3: Financial Results

    Financial Results John Coombe Chief Financial Officer

  4. Slide 4: Statutory Results

    Statutory Results Business Exceptional Total Total Performance Items* 3Q02 3Q01 £m £m £m £m Sales 5,019 - 5,019 4,994 Trading profit 1,555 (284) 1,271 1,058 Profit before tax 1,388 (278) 1,110 690 EPS 16.7p (3.3p) 13.4p 6.1p * Costs associated with merger integration and manufacturing restructuring

  5. Slide 5: Business Performance Results

    Business Performance Results 3Q02 3Q01 % change £m £m CER Reported Sales 5,019 4,994 6 1 - Pharma Sales 4,222 4,184 6 1 Trading profit 1,555 1,416 17 10 Other operating income/(expense) (145) (59) Profit of associate 20 19 Net interest expense (42) (27) Profit before tax 1,388 1,349 12 3 Tax rate 27

  6. Slide 6: Performance by Operating Division

    Performance by Operating Division 3Q02 3Q01 Growth £m £m CER % Sales Pharmaceuticals 4,222 4,184 6 Consumer Healthcare 797 810 4 Trading Profit Pharmaceuticals 1,410 1,272 18 Consumer Healthcare 145 144 8

  7. Slide 7: Trading Profit Analysis

    Trading Profit Analysis 3Q02 3Q01 Change £m £m CER% Sales 5,019 4,994 6 Cost of goods 1,041 1,071 1 20.7% 21.4% S,G&A 1,782 1,867 2 35.5% 37.4% R&D 641 640 3 12.8% 12.8% Trading profit 1,555 1,416 17 31.0% 28.4% % % in in italics italics are are % % of of sales sales

  8. Slide 8: Strong Cash Flow

    Strong Cash Flow 3Q02/£m 3Q01/£m Net Operating Cash Flow 2,143 1,698 Interest (49) (23) Taxation (494) (404) Capital expenditure (227) (258) Dividends paid (536) (547) Purchase of own shares (Cancellation/ESOT) (353) (326) Other (57) 162 Decrease in net debt 427 302 30 Sep 02 30 Jun 02 Net Debt (2,1

  9. Slide 9: Pharmaceutical Sales

    Pharmaceutical Sales Robert Ingram Chief Operating Officer

  10. Slide 10: Pharmaceuticals - Sales by Region

    Pharmaceuticals - Sales by Region CER % growth - three months ended 30th September 2002 £836m (+6%) % share USA 54 £2,279m Europe 26 (+9%) £1,107m International 20 (+2%) Total Pharma Sales £4,222m +6%

  11. Slide 11: US Reported Growth in Line With Underlying Growth

    US Reported Growth +9% in Q302 is in Line With Underlying Growth • Some products impacted by wholesaler buying patterns, e.g. : US Product Reported Growth Est. Underlying Growth Augmentin (40%) (25%) Avandia (32%) 6% Coreg 66% 31% Wellbutrin 53% 21%

  12. Slide 12: Sales by Therapy Area

    Sales by Therapy Area % growth - 3 months ended 30th September 2002 £367m (-1%) £231m £1,124m % share (+13%) (+21%) CNS 27 £297m (+26%) Respiratory 22 £289m Anti-Virals 13 (-23%) Anti-Bacterials 10 Metabolic/GI 7 £434m £922m (-15%) (+11%) Vaccines 7 £558m Oncology 5 (+11%) Others 9 Total Pharma Sale

  13. Slide 13: Augmentin: Generic Erosion

    Augmentin: Generic Erosion % TRx Share of Total branded and generic Augmentin 100% 5% 80% 40% 42% Generic 60% 86% 82% Augmentin IR 47% 43% 40% Augmentin ES 20% 14% 13% 13% 15% 0% Jun-02 Jul-02 Aug-02 Sep-02 Source: Verispan SPA

  14. Slide 14: Augmentin XR Amoxicillin levels

    Augmentin XR >60% Increase in Anti-Bacterial Activity vs Regular Augmentin Augmentin® XR Amoxicillin levels (µg/mL) 20 Augmentin® 875 mg tablets 15 10 5 0 6 12 Time after dose (hr)

  15. Slide 15: US Paxil Sales

    Q302: US Paxil Sales £347m +27% Paxil CR already 24% of Paxil NRxs + DTC started End of Sept 24% 22% 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 16 -02 21 02 05 2 -02 30 02 13 02 -02 02 24 02 2 02 02 -02 11 2 -02 -0 l-0 -0 - - - ct- l- - ug pr un un pr ug ug ay ep ep ay -Ju -Ju -O -A -A -A -J -J -A -A -M

  16. Slide 16: Oral Diabetes Market

    Oral Diabetes Market Patient Usage One pill to target insulin resistance and glucose reduction 4 Significant glycemic control 58% 42% 4 Durability 4 Compliance benefit 4 Flexible dosing 25% growth of Combination combination therapy Monotherapy over 12 months1 1. NDC research January 2002

  17. Slide 17: Sustained growth in US market share

    Sustained growth in US market share 25 20 % 15 10 5 1 2 n- 01 -01 -01 l-0 p- 01 v-0 1 n- 02 -02 -02 l-0 a ar ay Ju e o a ar ay Ju J M M S N J M M ADVAIR SINGULAIR Source: IMS data August 2002 Monthly Share of R3 market by Value

  18. Slide 18: GlaxoSmithKline

    osk GlaxoSmithKline

GlaxoSmithKline — Q3 2002 Earnings Presentation on 6ix