Slide 1: Q3 2023 results
01 November 2023 Q3 2023 results Conference call and webcast for investors and analysts gsk.com
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: Agenda
Agenda Strong and sustained performance heading into 2024 Emma Walmsley Innovation Dr Tony Wood Performance Luke Miels, Deborah Waterhouse and Julie Brown Summary Emma Walmsley Q&A Emma Walmsley, Tony Wood, Luke Miels, Deborah Waterhouse, Julie Brown, David Redfern 3
Slide 4: Strong and sustained performance heading into 2024
Strong and sustained performance heading into 2024 Emma Walmsley, Chief Executive Officer 4
Slide 5: Clear momentum driving strong year-to-date performance
Clear momentum Q3 2023 performance driving strong year-to- date performance Sales Adj. operating profit £8.1bn, +10% £2.8bn, +15% Delivered 13%1 sales growth, +16% +22% 1 1 14%1 adj. operating profit growth Profitable, resilient growth across portfolio: Adj. EPS Dividend per • Vaccines +21%1 50.4p,
Slide 6: Spotlight on prevention: Vaccines are a strong, durable growth business
Spotlight on prevention: Vaccines are a strong, durable growth business Launched world’s first RSV vaccine, Shingrix £825m +15% in Q3 £709m in Q3 • 100% efficacy in large, study in China • Approved in US, EU, • Partnership with Zhifei Canada, Japan expands potential in China • Positive data in 50–59
Slide 7: Trust: Delivering health impact sustainably
Trust: Delivering health impact sustainably For health impact, shareholder returns and thriving people Key highlights Six priority areas to build trust Global health and health security • New research published in Science showed that a naturally occurring bacterium discovered by GSK scientists could
Slide 8: Innovation
Innovation Dr Tony Wood, Chief Scientific Officer 8
Slide 9: Focused on core therapy areas
Focused on core therapy areas Two thirds of our R&D portfolio prevents and treats infectious diseases and HIV Infectious Respiratory/ HIV Oncology Diseases Immunology Arexvy Long-acting and ultra-long-acting depemokimab Ojjaara MenABCWY N6LS (bNAb1) camlipixant Jemperli Pneumococcal 24-valent 3rd ge
Slide 10: Delivering important new data to prevent infectious disease
Delivering important new data to prevent infectious disease Arexvy: phase III trial demonstrated non-inferiority in Shingrix: new data demonstrate 100% vaccine adults 50–59 compared to adults ≥60 years of age efficacy in the prevention of shingles in adults aged 50 and over in China Co-primary end p
Slide 11: Bepirovirsen a triple-action antisense oligonucleotide
Bepirovirsen a triple-action antisense oligonucleotide Providing patients with a potential functional cure for chronic hepatitis B Hepatitis B virus B-Together: positive phase IIb results >300 million demonstrated proof of concept All (N=108) Baseline HBsAg ≤3000 IU/mL (N=68) Baseline HBsAg ≤1000 IU
Slide 12: 67 assets in clinical development: upcoming pipeline catalysts
67 assets in clinical development: upcoming pipeline catalysts Infectious Diseases Respiratory/ Immunology Opportunity driven HIV Oncology H2 2023 H1 2024 H2 2024 Regulatory decision Jemperli3: RUBY, dMMR/MSI-H 1L EC4 EU Arexvy: 50-59 YoA1 US, EU, JP Ojjaara: MOMENTUM, myelofibrosis EU, JP Nucala: C
Slide 13: Performance: growth drivers
Performance: growth drivers Luke Miels, Chief Commercial Officer Deborah Waterhouse, CEO, ViiV Healthcare and President, Global Health 13
Slide 14: Delivering growth across portfolio
Delivering growth across portfolio Q3 2023: positive performance across Vaccines and Specialty Medicines and all regions Sales contribution by product area1 Sales contributions by region1 Vaccines Specialty Medicines General Medicines US Europe International 9,000 9,000 +16% +16% 8,000 8,000 +7% +7%
Slide 15: Vaccines: +34% with strong Arexvy launch contributing £709m
Vaccines: +34%1 with strong Arexvy launch contributing £709m • 83m adults age 60+ in US; 400m globally • Launches underway in US, Europe and Canada; approval in Japan • >60% US retail market share TRx (m) Arexvy US TRx since launch 1.4 • ~50% of doses co-administered with flu vaccines 1.2 1 • Availa
Slide 16: Vaccines: Strong Shingrix momentum driven by geographic expansion
Vaccines: Strong Shingrix momentum driven by geographic expansion Q3: £825m +15% • US: 33% market penetration; strategic targeting to access next tranche of customers 50% of Shingrix sales now ex-US • Now in 39 countries, most with <3% penetration 60% 50% 40% • China: Zhifei to co-promote Shingrix w
Slide 17: Specialty Medicines: +17% with durable growth drivers
Specialty Medicines: +17%1 with durable growth drivers Strong contributors across Ojjaara: line-agnostic label portfolio meets unmet need • Benlysta +20%: growth across all • First and only treatment indicated major markets; updated EULAR for myelofibrosis patients with guidelines recommend earlier
Slide 18: General Medicines: anticipate low to mid single-digit growth in 2023
General Medicines: anticipate low to mid single-digit growth in 2023 General Medicines -2% in line Trelegy: growth opportunity Trelegy Q3 2023 sales since launch with expectations remains for SITT class in US 600 M 500 M 400 M • Trelegy +23%: most prescribed SITT • Single inhaler triple therapy is t
Slide 19: HIV: 15% growth in Q3 driven by oral 2DR and long-acting regimens
HIV: 15% growth in Q3 primarily driven by oral 2DR1 and long-acting regimens Strong execution across HIV oral 2DR and Growth driven by oral 2DR and long-acting long-acting regimens portfolio regimens 60% • Sales: £1.6bn in Q3 with all regions driving growth Oral 2DR & LA sales as a % of total HIV sa
Slide 20: Performance: financial results
Performance: financial results Julie Brown, Chief Financial Officer 20
Slide 21: Investor roadmap to end of 2024
Investor roadmap to end of 2024 Q2 2023 Q3 2023 Q4 2023 H1 2024 H2 2024 Execution • Q2 and Half-year • Q3 and Year-to-date • Full-year and Q4 2023 • Q1 2024 results • Q3 and Year-to-date 2024 results 2023 results 2023 results results • Q2 and Half-year 2024 results • Full-year and Q4 2024 results •
Slide 22: Delivered a very strong Q3 2023 financial performance
Delivered a very strong Q3 2023 financial performance Q3’22 Q3’23 AER CER Key commentary Adjusted results £m £m % % Sales 7,829 8,147 4 10 Sales grew +16% excluding COVID-19 solutions Benefit from lower sales of lower margin Xevudy and Cost of sales (2,214) (2,073) (6) (4) favourable mix Gross profi
Slide 23: Improved Q3 2023 adj. operating margin by 170 bps at CER
Improved Q3 2023 adj. operating margin by 170 bps at CER Improved by 180 bps at CER excluding COVID-19 solutions +1.7% 1.7% 3.6% 35.0% 0.6% 0.4% 1.0% 34.0% 33.3% Q3’22 margin COGS SG&A R&D Royalties Q3’23 Currency Q3’23 margin at 22 margin at 23 FX FX Key Lower COGS due to Investment for growth Incr
Slide 24: Improved adj. earnings per share, with 17% CER growth
Improved adj. earnings per share, with 17% CER growth Q3 2022 Q3 2023 Key commentary £m £m Adj. operating profit (OP) 2,605 2,772 +15% at CER, +22% (at CER excluding COVID-19 solutions) Net finance expense (177) (156) Lower bond interest costs and higher interest income Share of associates (1) - Tax
Slide 25: 9M 2023 free cash flow of £1.3bn
9M 2023 free cash flow of £1.3bn Cash generated from operations of £4.4bn £m £m 9M 2022 9M 2023 Adj. operating profit 6,556 7,034 Decrease/(Increase) in working capital (667) (2,669) Key drivers of cash flow Gilead Science, Inc. settlement income 927 - Lower cash generated from operations, including
Slide 26: 2023 guidance at CER upgraded (excl. COVID-19 solutions)
2023 guidance at CER upgraded (excl. COVID-19 solutions) 2023 guidance 2023 sales guidance composition Vaccines Around 20% growth Sales 12% to 13% growth Previously 8% to 10% growth Speciality Medicines1 Low double-digit % growth Adj. operating profit 13% to 15% growth Previously 11% to 13% growth H
Slide 27: A focused global biopharma company with clear momentum that is delivering
A focused global biopharma company with clear momentum that is delivering Strategy focused on World leader in Highly attractive Innovation progress prevention and infectious disease with medium-term1 target underscores confidence treatment to get ahead a broader pipeline for sales and adjusted in ab
Slide 28: Q&A
Q&A 28
Slide 29: Appendix
Appendix 29
Slide 30: 2023 full year outlook considerations to support modelling
2023 full year outlook considerations to support modelling Vaccines turnover Specialty Medicines turnover General Medicines turnover Increase around 20%, excluding pandemic adjuvant Increase low double-digit % for Specialty Medicines, Increase low to mid single-digit % sales excluding Xevudy sales S
Slide 31: Q3 2023 Total to adjusted profit reconciliation
Q3 2023 Total to adjusted profit reconciliation Q3 2022 Q3 2023 Key commentary Operating profit Operating profit (£m) (£m) Total results 1,191 1,949 Intangible amortisation 198 182 Intangible impairment 17 129 Major restructuring 73 110 ViiV CCL1 movements, primarily related to improved sales Transa
Slide 32: Continuing operations basis for guidance
Continuing operations basis for guidance 2022 2023 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 YTD Including COVID-19 solutions Sales (£m) 7,190 6,929 7,829 7,376 29,324 6,951 7,178 8,147 22,276 Operating profit (£m) 1,943 2,008 2,605 1,595 8,151 2,092 2,170 2,772 7,034 Operating margin 27.0% 29.0% 33.3% 21.6% 27.8% 30
Slide 33: Currency
Currency 2022 currency sales exposure1 2023 adj. operating profit US $ 48% US $: 10 cents movement in the average exchange rate for full year impacts adj. operating profit by approx. +/- 8.0% Euro € 17% Euro €: 10 cents movement in the average exchange rate for full year impacts adj. operating profi
Slide 34: Capital allocation framework
Capital allocation framework The priority is to invest for growth, coupled with attractive shareholder returns Sustainable, profitable growth & cash generation 1 2 Invest for growth Shareholder distributions +17% +8% BD) Pipeline (organic & targeted Progressive dividend (40-60% pay-out ratio) New pr
Slide 35: Upcoming pipeline catalysts: 2023 and 2024
Infectious diseases Upcoming pipeline catalysts: 2023 and 2024 HIV (ViiV) Respiratory/Immunology Oncology Opportunity driven H2 2023 H1 2024 H2 2024 Regulatory decision Jemperli3: RUBY, dMMR/MSI-H 1L EC4 EU Arexvy: 50-59 YoA1 US, EU, JP Ojjaara: MOMENTUM, myelofibrosis EU, JP Nucala: CRSwNP2 JP Nuca
Slide 36: 67 potential new vaccines and medicines in pipeline: Phase III / Registration
Infectious diseases HIV (ViiV) Respiratory/Immunology 67 potential new vaccines and medicines in pipeline Oncology Opportunity driven Phase III / Registration – 17 assets Arexvy (RSV vaccine) Recombinant protein, adjuvanted* RSV older adults (50-59 YoA) gepotidacin (2140944) BTI inhibitor* Uncomplic
Slide 37: 67 potential new vaccines and medicines in pipeline: Phase II
Infectious diseases HIV (ViiV) Respiratory/Immunology 67 potential new vaccines and medicines in pipeline Oncology Opportunity driven Phase II – 27 assets 3437949 Recombinant protein, adjuvanted* Malaria fractional dose 4406371 Live, attenuated MMRV new strain 3536852 GMMA* Shigella 3528869 Viral ve
Slide 38: 67 potential new vaccines and medicines in pipeline: Phase I
Infectious diseases HIV (ViiV) Respiratory/Immunology 67 potential new vaccines and medicines in pipeline Oncology Opportunity driven Phase I – 23 assets 4429016 Bioconjugated recombinant protein, adjuvanted* K. pneumoniae 4077164 Bivalent GMMA* Invasive non-typhoidal salmonella** 3943104 Recombinan
Slide 39: Changes since Q2 2023
Infectious diseases HIV (ViiV) Respiratory/Immunology Changes since Q2 2023 Oncology Opportunity driven Changes on pipeline Achieved pipeline catalysts New to Phase I Regulatory decisions 3915393 – TG2 inhibitor, pulmonary fibrosis Arexvy – Adjuvanted recombinant protein, RSV older adults JP 4524101
Slide 40: Glossary
Glossary ADC Antibody drug conjugate EGPA Eosinophilic granulomatosis with polyangiitis NSCLC Non-small cell lung cancer AE Adverse event FVC Forced vital capacity OMV Outer membrane vesicle AESI Adverse event of special interest GC Urogenital gonorrhea ORR Overall response rate AUC Area under curve
Slide 41: Use of GSK conference call, webcast and presentation slides
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Slide 42: gsk.com
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