Slide 1: Half year and Q2 2022 Results
27 July 2022 Half year and Q2 2022 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 Half year and Q2 2022
Agenda Half year and Q2 2022 Emma Walmsley Innovation Dr Hal Barron Performance Luke Miels, Deborah Waterhouse and Iain Mackay Trust Emma Walmsley Q&A Roger Connor and David Redfern 3
Slide 4: Half year and Q2 2022: Delivering a landmark year
Half year and Q2 2022 Delivering a landmark year Emma Walmsley, Chief Executive Officer 4
Slide 5: A new focused biopharma company
A new focused biopharma company Focus Growth Flexibility Ambition and purpose to unite Highly attractive medium-term1 Strengthened balance sheet, science, technology, and talent target for sales and adjusted creating new flexibility to invest to get ahead of disease operating profit growth of >5% in
Slide 6: Delivering a landmark year
Half year 2022 Delivering a landmark year Turnover1 Adj. operating profit1 +25% +26% Double-digit turnover (+12%1,2) and adj. operating profit (+27%1,2) growth, excluding COVID-19 solutions £14.1bn £4.0bn Strong commercial execution delivered sales growth3 across the portfolio: • Specialty Medicines
Slide 7: Q2 2022: turnover increased +13% (+10%)
Q2 2022: turnover increased +13% (+10%1) Q2 2022 Reported % Improving revenue mix, with £m AER CER disciplined cost control, supports Turnover 6,929 19 13 confidence in delivering long- term outlooks Specialty Medicines 2,704 44 352 • Specialty Medicines: growth across all Vaccines 1,715 9 33 therap
Slide 8: H1 2022: continued strengthening of late-stage R&D pipeline
H1 2022: continued strengthening of late-stage R&D pipeline Pipeline Strategic business development First to announce positive phase III results for RSV1 older adult vaccine, suggesting exceptional Proposed acquisition of Affinivax, Inc. protection • Building a strong portfolio of new vaccines Phase
Slide 9: Innovation
> Innovation Dr Hal Barron GSK
Slide 10: Innovation: pipeline progressing as planned
Innovation: pipeline progressing as planned Potential first- or Major lifecycle Medicine/Vaccine Indication Submission1 Current Status Best-in-class innovation cabotegravir HIV2 prevention ✓ ✓ 2021 Apretude launch (US) Pipeline daprodustat Anaemia in CKD3 ✓ 2022 Reg. submission acceptance (US4, EU)
Slide 11: Innovation: a potential new vaccine to prevent RSV
Innovation: a potential new vaccine to prevent respiratory syncytial virus (RSV) Positive pivotal phase III data in older adults, suggesting exceptional protection, with primary endpoints achieved: • Effective at reducing RSV-associated LRTD1 ✓ • Effective across RSV A and RSV B subtypes ✓ • Effecti
Slide 12: Innovation: bepirovirsen B-CLEAR phase II end of treatment data
Innovation: bepirovirsen B-CLEAR phase II end of treatment data Potentially transformative new treatment option for patients with chronic HBV1 300 million B-CLEAR phase II end of treatment; HBV DNA2 and HBsAg3 LLOQ4 living with HBV infection 120 100 100 900 thousand 80 HBV-related deaths per year Pa
Slide 13: Innovation: 2022 ASCO Annual Meeting abstracts
Innovation: 25 abstracts 2022 ASCO Annual Meeting 4 oral 6 poster discussions Research advances 10 posters demonstrate the strength 5 publications of the Oncology pipeline and portfolio Blenrep: DREAMM-5 clinical trial demonstrates synergy with GSI combination Jemperli: advancing research for patien
Slide 14: Innovation: Blenrep and Jemperli at ASCO 2022
Innovation: Blenrep and Jemperli at ASCO 2022 Potentially transformative data presented Blenrep: potential to move to earlier Jemperli: unparalleled response rate in lines of therapy neoadjuvant locally advanced rectal cancer Illustrative data Dose Ocular Trial Combination (mg/kg) Schedule Efficacy1
Slide 15: Innovation: 2022-2023 key news flow
Innovation: 2022-2023 key news flow 2022 2023 Regulatory approvals or Achieved Priorix - MMR1 (US) H1 daprodustat - ASCEND, anaemia of CKD (US, EU) other regulatory action Vocabria/Rekambys - HIV (JP) momelotinib - MOMENTUM, myelofibrosis (US) Cervarix - human papillomavirus (CN) RSV older adults va
Slide 16: Performance: growth drivers
Performance: growth drivers Luke Miels, Chief Commercial Officer Deborah Waterhouse, CEO, ViiV Healthcare 16
Slide 17: Performance: Vaccines +24%; Shingrix delivers strong performance
Performance: Vaccines +24%1; Shingrix delivers strong performance Q2 2022: Shingrix sales more than doubled to £731m • US: good demand, channel inventory build and strong Shingrix commercial execution 800 700 • EU (ex. US 40% of growth): high demand in Germany; 600 recent launches in Austria, Denmar
Slide 18: Specialty Medicines grew +13%; General Medicines +2%
Performance: Specialty Medicines grew +13%1; General Medicines +2% Q2 2022: growth across the portfolio and Trelegy in General Medicines Benlysta Double-digit growth across Specialty Medicines 350 Immuno-inflammation, respiratory and other +24% • Benlysta +29%: leading lupus medicine with continued
Slide 19: Performance: HIV growth accelerating
Performance: HIV1 growth accelerating Momentum driven by innovation sales Growth driven by Dovato and HIV innovation portfolio long-acting regimens 700 45% 41% 38% 40% 600 • Sales: H1 2022 +10%; Q2 2022 +7% 34% 35% 500 29% 30% • Innovation sales: represent >40% in Q2 2022, reflecting 27% 25% increas
Slide 20: Performance: financial results
Performance: financial results Iain Mackay, Chief Financial Officer 20
Slide 21: Q2 2022 results and total to adjusted reconciliation
Performance: Q2 2022 results and total to adjusted reconciliation Turnover Operating Q2 2022 Q2 2021 (£bn) profit (£bn) EPS EPS Key dynamics (pence) (pence) Total results - Total 20.8 34.8 Turnover: £6.9bn, 19% at AER, +13% at CER Profit from discontinued Shingrix demand recovery and market expansio
Slide 22: Q2 2022 turnover £6.9bn, +19% at AER, +13% at CER
Performance: Q2 2022 turnover £6.9bn, +19% at AER, +13% at CER Key dynamics Q2-21 sales 5,838 HIV +7% CER 83 Oncology +23% CER 27 HIV: strong demand for Dovato and Cabenuva II, respi & other +24% CER 125 Oncology: Zejula and Blenrep growth +13% CER Vaccines +24% CER 311 +19% AER Immunology, respirat
Slide 23: Q2 2022 adjusted operating margin
Performance: Q2 2022 adjusted operating margin Adjusted operating profit +7% at CER Q2-21 margin 28.1% Key dynamics COGS +31% CER 4.1% Sales: positive operating leverage COGS: increasing Specialty Medicines and Vaccines SG&A +16% CER 0.7% mix (61% vs 57%1) -1.5% SG&A: continued restructuring benefit
Slide 24: Q2 2022 adj. operating profit to net income
Performance: Q2 2022 adj. operating profit to net income1 Q2 2021 Q2 2022 Key commentary £m £m Operating profit 1,641 2,008 +22% at AER, +7% at CER Net finance expense (185) (181) Share of associates 16 (2) Tax (244) (277) Reflects timing of settlements with various Tax rate 16.6% 15.2% tax authorit
Slide 25: H1 2022 free cash flow of £1.7bn
Performance: H1 2022 free cash flow of £1.7bn1 Cash generated from operations £3.9bn1 Key dynamics H1 2021 free cash flow 137 Higher CCL2 -189 Increased adjusting operating profit Upfront income from Gilead Science, Inc. settlement Higher net operating cash3 2,282 Favourable foreign exchange Favoura
Slide 26: Increasing guidance for sales and adj. operating profit
Performance: increasing guidance for sales and adj. operating profit Strong first half performance and momentum into H2 2022 H1 2022 performance 2022 guidance H2 2022 outlook Sales1 Quarter 31 Sales1 Between 6% to 8% growth 12% growth Strong comparator; expect sales and Previous: between 5% to 7% gr
Slide 27: Trust: delivering health impact and shareholder returns
Trust: delivering health impact and shareholder returns Emma Walmsley, Chief Executive Officer 27
Slide 28: Trust: ESG is integral to GSK's overall strategy and performance
Trust: ESG is integral to GSK’s overall strategy and performance Delivering health impact and shareholder returns Environment Global health & health security Diversity, equity & inclusion Pricing access Product governance Operating standards 28
Slide 29: Trust: committed to delivering health impact at scale
Trust: committed to delivering health impact at scale £1bn to be invested in R&D ‘Vaccines for a sustainable Working with the Medicines over ten years to get ahead planet’ meeting to address Patent Pool for the voluntary of infectious diseases in the growing threat to human licensing of cabotegravir
Slide 30: Q&A
Q&A 30
Slide 31: Appendix
Appendix 31
Slide 32: Innovation: 68 potential new vaccines and medicines
Innovation: 68 potential new vaccines and medicines Phase I Phase II Phase III/Registration 2904545* (recombinant protein) Ɨ C. difficile 3437949* (recombinant protein) Ɨ Malaria fractional dose Bexsero infants US (recombinant protein) MenB 4429016* (bioconjugated, recombinant protein) Ɨ K. pneumoni
Slide 33: Innovation: R&D pipeline changes since last quarter
Innovation: R&D pipeline changes since last quarter Phase I Phase II Phase III Registration GSK4077164 (bivalent GMMA1) sanfetrinem cilexetil (serine momelotinib (JAK1/25 and Priorix (MMR7), approved (US) invasive non-typhoidal beta lactamase inhibitor), ACVR1/ALK26 inhibitor), Salmonella (S. Typhim
Slide 34: Full-year outlook considerations to support modelling
Performance: full-year outlook considerations to support modelling Specialty turnover Vaccines turnover General Medicines turnover Increase approximately 10% for Specialty, excluding Increase low to mid-teens %, excluding pandemic Slight decrease Xevudy sales adjuvant sales HIV to increase mid to hi
Slide 35: Continuing operations basis for 2022 guidance
Performance: continuing operations basis for 2022 guidance Historical financials, adjusted results 2021 2022 Q1 Q2 Q3 Q4 FY Q1 Q2 Including COVID-19 solutions Sales (£m) 5,155 5,838 6,627 7,076 24,696 7,190 6,929 Operating profit (£m) 1,325 1,641 2,209 1,317 6,492 1,943 2,008 Earnings per share (pen
Slide 36: Performance: currency
Performance: currency 2021 currency sales exposure1 2022 adj. operating profit US $ 49% US $: 10 cents movement in the average exchange rate for full- year impacts adj. operating profit by approx. +/- 7.0% Euro € 19% Euro €: 10 cents movement in the average exchange rate for full-year impacts adj. o
Slide 37: gsk.com
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