Slide 1: 2023 Third Quarter Trading Statement
2023 Third Quarter Trading Statement November 2023
Slide 2: Disclaimer
Disclaimer This presentation contains certain statements that are, or may be These forward-looking statements and views may be based on a number deemed to be, “forward-looking statements” (including for purposes of of assumptions and, by their nature, involve known and unknown risks, the safe harbor
Slide 3: Tobias Hestler, CFO
Tobias Hestler CFO J
Slide 4: Strong third quarter performance demonstrating strength and diversity of portfolio
Strong third quarter performance demonstrating strength and diversity of portfolio 5.0% organic growth with +6.6% price and (1.6)% volume mix Adjusted operating profit +8.8% constant currency reflecting positive operational leverage Adjusted operating margin of 24.6%, +90bps constant currency bringi
Slide 5: Q3 key financials
Q3 key financials Revenue Adjusted operating profit1 £2.8bn 5.0% £689m 24.6% Revenue Organic revenue Adjusted Adjusted growth operating profit 1 operating profit margin1 (5.0)% (50)bps 6.6% (1.6)% AER & AER & Price Volume/mix +8.8 % +90bps CER CER 1. Reconciliation of IFRS to Adjusted results can be
Slide 6: Q3 2023 revenue growth
Q3 2023 revenue growth Strong organic growth driven by pricing £m +5.0% Organic revenue growth (8.3)% 6.6% 2,798 0.0% 2,892 (1.6)% Translational Price Acquisitions, foreign Volume / mix disposals and exchange MSA Includes c. +1% impact from Argentina and Significant impact from Turkey yoy movement o
Slide 7: Good growth across categories
Good growth across categories Continued strength in Oral Health Q3 Organic revenue Revenue growth1 Strong performance across all three Power Brands £m 9m Q3 Oral Health 790 10% 9% Centrum up double digit underpinned by innovation VMS 410 -% 1% partly offset by double digit decline in Emergen-C Pain
Slide 8: Strong emerging market growth
Strong emerging market growth Q3 Revenue North North America America Asia Pacific (1.5)% OSG 1 £1,018m (Q3 2022: £1,101m) EMEA & LATAM EMEA & LATAM 10.8% OSG 1 £1,155m (Q3 2022: £1,136m) Asia Pacific Developed markets1 Emerging markets1,2 5.9% OSG 1 £625m (Q3 2022: £655m) 1.8% 11.4% 1. Refers to Org
Slide 9: North America
North America Strength in Oral Health offset by retailer inventory adjustments in Digestive Health £1,018m Oral Health VMS Digestive Health Q3 23 Sales High-single digit growth Low single digit growth and Other in Sensodyne with double digit growth Decline driven by retailer (1.5) % 2.6 % (4.1) % un
Slide 10: EMEA & LATAM
EMEA & LATAM Strong performance with volume/mix weakness in Latin America £1,155m Oral Health Double digit growth in VMS Down low single digit Respiratory Up mid-single digit with Q3 23 Sales Sensodyne and Denture with Centrum up strength in Theraflu Care with high single double digit offset by a un
Slide 11: Asia Pacific
Asia Pacific Balanced price and volume/mix growth £625m Oral Health High single digit growth VMS Low-single digit growth Pain Relief Mid-single digit growth with Q3 23 Sales driven by Sensodyne supported by double strong growth in Panadol across Japan, India and digit growth in and Voltaren partly o
Slide 12: Q3 Adjusted operating profit growth
Q3 Adjusted operating profit growth +8.8% at constant exchange rates;+60bps operating leverage £m 54 (100) 10 789 Adjusted operating margin up 90bps Standalone Operating constant currency, down 50bps at 725 leverage Translational costs 689 actual rates FX Operating leverage of +60bps from organic gr
Slide 13: Outlook
Outlook for full year 2023 Organic revenue growth1 7-8% Adjusted operating profit growth1 9-11% constant currency Net interest expense c. £350m Adjusted effective tax rate 23-24% 1. Definitions of adjusted measures can be found in the Appendix 13
Slide 14: Strong third quarter performance demonstrating strength and diversity of portfolio
Strong third quarter performance demonstrating strength and diversity of portfolio 5.0% organic growth with +6.6% price and (1.6)% volume mix Adjusted operating profit +8.8% constant currency reflecting positive operational leverage Adjusted operating margin of 24.6%, +90bps constant currency bringi
Slide 15: 2023 Third Quarter Trading Statement Q&A
2023 Third Quarter Trading Statement Q&A November 2023
Slide 16: Appendix
Appendix
Slide 17: Glossary
Glossary A number of Adjusted measures are used to report the performance of our business which are These gains and losses are not directly attributable to the sale of the Group’s products and vary non-IFRS measures. Adjusted results, CER and other non-IFRS measures may be considered in from period
Slide 18: Growth focused disciplined capital allocation
Growth focused disciplined capital allocation Investing Strengthen Shareholder M&A for growth balance sheet returns • Brand investment • De-lever to <3x net • Bolt-on M&A • Ordinary dividend debt/Adjusted EBITDA • R&D • Commercially • Return surplus capital during 2024 compelling to shareholders • S
Slide 19: FY Translational currency impact
FY Translational currency impact FY 2022 currency as % Average Average Average Spot Currency of total revenue 2022 9m 2022 9m 2023 30.09.23 Estimated unfavourable USD 33% 1.24 1.26 1.24 1.23 translational foreign EUR 16% 1.17 1.18 1.15 1.16 exchange impact CNY 8% 8.31 8.27 8.75 8.96 • c. (3.5)% on r
Slide 20: Q3/9m Translational currency rates
Q3/9m Translational currency rates Average Average Average Average Spot Currency Q3 2022 Q3 2023 9m 2022 9m 2023 30.09.23 USD 1.16 1.26 1.26 1.24 1.23 EUR 1.16 1.16 1.18 1.15 1.16 CNY 8.03 9.13 8.27 8.75 8.96 CAD 1.53 1.69 1.61 1.67 1.65 AUD 1.72 1.92 1.78 1.87 1.89 JPY 161 184 160 173 183 RUB 70 12
Slide 21: Reconciliation of organic growth
Reconciliation of organic growth Product categories Digestive Respiratory Health and Q3 2023 vs Q3 2022 (%) Oral Health VMS Pain Relief Health Others Total Revenue Growth 0.4 (6.2) (1.9) (3.9) (7.1) (3.3) Organic Adjustments - - 0.2 - (0.2) - of which: Effect of Acquisitions - - - - - - Effect of Di
Slide 22: Reconciliation of organic growth
Reconciliation of organic growth Product categories Digestive Respiratory Health and 9m 2023 vs 9m 2022 (%) Oral Health VMS Pain Relief Health Others Total Revenue Growth 6.9 (2.2) 7.6 12.1 2.9 5.6 Organic Adjustments - (0.1) 0.2 - (0.1) - of which: Effect of Acquisitions - (0.1) (0.2) - - (0.1) Eff
Slide 23: Reconciliation of quarterly organic growth
Reconciliation of quarterly organic growth North America EMEA & LatAm 2023 vs 2022 (%) Q1 2023 Q2 2023 Q3 2023 9m 2023 2023 vs 2022 (%) Q1 2023 Q2 2023 Q3 2023 9m 2023 Revenue Growth 14.0 4.4 (7.5) 3.0 Revenue Growth 13.3 11.2 1.7 8.5 Organic Adjustments - - - Organic Adjustments 0.4 0.1 0.2 of whic
Slide 24: Reconciliation of quarterly organic growth
Reconciliation of quarterly organic growth APAC Group 2023 vs 2022 (%) Q1 2023 Q2 2023 Q3 2023 9m 2023 2023 vs 2022 (%) Q1 2023 Q2 2023 Q3 2023 9m 2023 Revenue Growth 13.7 6.0 (4.6) 4.9 Revenue Growth 13.7 7.5 (3.3) 5.6 Organic Adjustments (0.6) 0.2 0.1 (0.1) Organic Adjustments - 0.1 - - of which:
Slide 25: IFRS and Adjusted results
IFRS and Adjusted results Unaudited Q3 2023 Net amortisation and impairment Separation IFRS of intangible Restructuring Transaction and admission Disposals Adjusted £m results assets1 costs2 related costs3 costs4 and others5 results Revenue 2,798 - - - - - 2,798 Operating profit 584 7 60 1 34 3 689
Slide 26: IFRS and Adjusted results
IFRS and Adjusted results Unaudited 9m 2023 Net amortisation and impairment Separation IFRS of intangible Restructuring Transaction and admission Disposals Adjusted £m results assets1 costs2 related costs3 costs4 and others5 results Revenue 8,536 - - - - - 8,536 Operating profit 1,725 30 90 8 94 13
Slide 27: Historic quarterly organic revenue growth performance
Historic quarterly organic revenue growth performance 2022 organic revenue growth1 2023 organic revenue growth1 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 9M Category Oral Health 7.9% 2.0% 6.7% 5.3% 5.6% 6.6% 15.4% 9.4% 10.3% VMS 14.9% 9.0% -1.4% -0.7% 5.0% -3.7% 2.7% 1.4% 0.2% Pain Relief 18.9% 4.9% 3.6% 8.9% 8.9% 11
Slide 28: 2023 Third Quarter Trading Statement
2023 Third Quarter Trading Statement Sonya Ghobrial Rakesh Patel Emma White Head of Investor Relations Director Director Sonya.x.Ghobrial@Haleon.com Rakesh.x.Patel@Haleon.com Emma.x.White@Haleon.com +44 7392 784784 +44 7552 484646 +44 7823 523562