GSK plc · LSE:GSK
GSK — Corporate Update (May 2009)
30 slides from GSK's corporate update, May 29, 2009
Slide 1: Consumer Healthcare Business Review
Consumer Healthcare Business Review 29 May 2009
Slide 2: Today's Agenda and Speakers
Today’s Agenda and Speakers Consumer Healthcare Business Background John M Clarke 1 and Strategy for Growth President Worldwide Consumer Healthcare Innovation Tim Wright Ken James Peter Harding 2 and Marketing Future Group R&D Aquafresh Excellence Ian McPherson Geographic Expansion and International
Slide 3: Innovation, Marketing Excellence, Geographic Expansion, New Business
Marketing Geographic New Innovation Excellence Expansion Business
Slide 4: GSK 2008 Turnover £24.4bn
GSK 2008 Turnover £24.4bn Respiratory £5.8bn Rest of Pharma £12.1bn Consumer Healthcare £4.0bn Vaccines £2.5bn
Slide 5: Consumer and Pharma Geographic Segmentation
Consumer and Pharma Geographic Segmentation Consumer Healthcare Pharma North America International International (Rest of World) (Rest of World) 24% 24% US 31% 44% Europe Europe 32% 45% 2008 Sales
Slide 6: Consumer Segmentation - Sales £4.0bn
Consumer Segmentation - Sales £4.0bn Category Consumer Healthcare Segmentation North Nutritionals America 20% International 24% (Rest of World) OTC 31% 49% Oral Care Europe 31% 45% 2008 Sales
Slide 7: OTC Strategic Position
OTC Strategic Position #2 % Market Share, Euromonitor 2008, AC Nielsen data & GSK analysis to update for Q1 2009
Slide 8: Oral Care Strategic Position
Oral Care Strategic Position #3 % Market Share, Euromonitor 2008 data
Slide 9: >50% of Sales From #1 Brands - £2bn
>50% of Sales From #1 Brands - £2bn #1 In Smoking Control #1 In Weight Management #1 In Denture Care #1 In Sensitive Toothpaste #1 In Analgesics Ex US #1 In UK Nutritional Beverages #1 India Nutritional Beverages 2008 Reported Sales, Market Shares - Euromonitor MSP and AC Nielsen Data
Slide 10: GSK Top 25 Brand Rank
GSK Top 25 Brand Rank £m £m 1 4,137 13 399 14 14 382 2 1,195 382 15 363 3 926 15 363 16 342 4 805 17 339 5 687 18 18 324 324 6 682 19 300 7 677 19 300 20 290 8 587 21 274 9 514 22 22 271 271 10 10 Concept Concept 452 452 23 266 11 442 24 263 12 433 25 237 2008 Reported Sales
Slide 11: Consumer Healthcare Products
Consumer Healthcare Products Number of years marketed 139 114 82 79 71 69 63 54 48 36 25 17 8 5 2
Slide 12: Consumer Healthcare Macro Trends
Consumer Healthcare Macro Trends 1 Lifestyle risks - obesity, smoking 2 Preventative healthcare and wellness 3 Emerging market growth 4 Aging population 5 Increasingly demanding lifestyles 6 Healthcare retail-isation
Slide 13: Global Consumer Healthcare Category Growth
Global Consumer Healthcare Category Growth % Growth 9.0 7.0 5.0 3.0 1.0 -1.0 -3.0 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar AC Nielsen and Local Market Data Sources
Slide 14: Sales CAGR 7%
Sales £bn +4% 4.1 +3% 3.9 +14% 3.7 3.5 3.3 +6% 3.1 +2% +2% 2.9 CAGR 7% 2.7 2.5 2004 2005 2006 2007 2008 Q1 2009
Slide 15: Q1 2009 Sales Performance vs Peers
Q1 2009 Sales Performance vs Peers % Growth +4 Consumer business only, excludes foreign exchange and one time benefit from acquisitions including Biotene for GSK and Adams for Reckitt
Slide 16: Innovation, Marketing Excellence, Geographic Expansion, New Business
Marketing Geographic New Innovation Excellence Expansion Business
Slide 17: Innovation
Marketing Geographic New Excellence Expansion Business Innovation
Slide 18: Innovation
Innovation Identify consumer need and scientific opportunity Tooth cross sections Hardened enamel in white Create technological platform Build compelling consumer claims Leverage our pharma DNA
Slide 19: Marketing Excellence
Marketing Geographic New Innovation Marketing Excellence Expansion Business Excellence
Slide 20: Marketing Excellence
Marketing Excellence Superior advertising Consumer Preferred, Expert Recommended 360 communications - multimedia digital marketing “Best Sales Forces In The World”
Slide 21: Cost Savings Fuels Growth
Cost Savings Fuels Growth £m Advertising +32% 150 100 50 0 2005 2006 2007 2008 Incremental Advertising* Savings * Incremental Base Business Advertising (excludes alli & CNS)
Slide 22: Geographic Expansion
Marketing Geographic New Innovation Geographic Excellence Expansion Business Expansion
Slide 23: Geographic Expansion
Geographic Expansion Investment footprint BRIC and satellite markets Global brand portfolio Invest in large proven brand concepts Go to market Price points Availability
Slide 24: Geographic Expansion Continued Growth
Geographic Expansion Continued Growth £bn 1.0 +15% +16% 0.9 0.8 +16% 0.7 2007 2008 Q1 2009 BRIC & Satellite Market MAT Sales & Growth @ CER
Slide 25: New Business
Marketing Geographic New Innovation Excellence Expansion New Business Business
Slide 26: New Business & Growth
New Business & Growth Geographic Expansion • Strengthen global brand platforms • Acquire brands with global potential Brand carriers for scientific innovation and claims Rx to OTC Switch
Slide 27: GSK acquires leading dry mouth brand
New Business GSK receives GSK acquires GSK strengthens OTC licence for leading dry analgesic alli across mouth brand business Europe
Slide 28: Slide 28
Slide 29: Key Messages
Key Messages Proven record of performance Powerful brand portfolio Superior science driven by consumer needs Global footprint and successful Geographic Expansion
Slide 30: Innovation, Marketing Excellence, Geographic Expansion, New Business
Marketing Geographic New Innovation Excellence Expansion Business