Gsk Plc · LSE:GSK
Gsk — Investor Day (May 2015)
12 slides from Gsk's investor day presentation, May 6, 2015
Slide 1: Consumer Healthcare business overview
Emma Walmsley Consumer Healthcare business overview 6 May 2015
Slide 2: The consumer healthcare opportunity
The consumer healthcare opportunity Growing Favourable consumer demographics healthcare • Ageing population market • Emerging market • ~4% sales growth1 consumer • Healthy gross margin* Increased Pharma + FMCG health = awareness FMCH capabilities • Digital • Consumer • Retailer 1 Euromonitor. * Vers
Slide 3: Our new portfolio strengthens category leadership positions
Our new portfolio strengthens category leadership positions £6.1bn sales1 OTC / Wellness – 49%2 FMCG – 51%2 Pain relief Specialist £14bn 3 #1 oral health #1 market £5bn 3 market Respiratory £22bn 4 #1 Nutrition £65bn #1 market market 5 India Gastro- Skin health intestinal #2 £8bn 3 #3 £10bn market 3
Slide 4: Competitive geographic footprint, sharper market focus
Competitive geographic footprint, sharper market focus Brands sold in Top 3 OTC in world’s Leader in OTC Brands sold in over over 160 largest healthcare in Germany 60,000 pharmacies in countries market in the US Russia 1 • 42%1 sales in 1 1 1 emerging markets 1 1 1 1111 No. 1 toothpaste in 1 11 1 1
Slide 5: 7 Power Brands & 12 Core Brands will drive 90% of growth
7 Power Brands & 12 Core Brands will drive 90% of growth 7 Power Brands Growth drivers • Penetration opportunity • Health care professional recommendation • Innovation • Emerging markets • Prioritised, high ROI 12 Core Brands A&P Theraflu includes carrier brands such as Beechams and Coldrex. 54
Slide 6: Track record of growth and innovation
Track record of growth and innovation +12% 1 +10% 1 +10% 1 CAGR CAGR CAGR • No. 1 dentist • Fastest growing OTC • Trusted brand recommended brand • Consumer access • Strong innovation: • Consumer insight: 12 • Distribution strength Repair & Protect / hour claims and Complete / True packaging White 1
Slide 7: Investing for long term innovation strength
Investing for long term innovation strength • Consumer and science led pipeline • 6 co-located hubs, top talent • Sensory, packaging, Shopper Science Lab • Innovation >10% sales1 1 Internal data. 56
Slide 8: Well placed to deliver sales growth
Well placed to deliver sales growth Expected CAGR 2016-20* Consumer and science based innovation FMCH talent and capability Mid single digit* Geographic footprint Across 150 markets & sharper prioritisation Categories and brands Global leadership & sharper prioritisation * Expected CAGR to 2020, usi
Slide 9: Clear drivers for margin improvement
Clear drivers for margin improvement 2020 Supply chain improvement programme SKU management, network consolidation Target 20%+ margin* (top quartile) Power Brand focus Transaction synergies: £400m by 2017 Headcount, procurement, standard processes * Versus comparable businesses. All expectations and
Slide 10: A global consumer healthcare leader for the long term
A global consumer healthcare leader for the long term Competitive Improved brand portfolio prioritisation Investing for FMCH talent & Simplification & and geographic and resource innovation capabilities cost reduction footprint allocation Integration accelerates strategy Strong prospects for revenue
Slide 11: 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 12: Unaudited pro forma financial information
Unaudited pro forma financial information The unaudited pro forma financial information in this presentation has been prepared to illustrate the effect of (i) the disposal of the oncology assets, (ii) the Consumer Healthcare joint venture (i.e. the acquisition of the Novartis OTC Business), and (iii