Slide 1: Full year and Q4 2021 results
Full year and Q4 2021 results 9 February 2022
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 Accelerating progress Emma Walmsley Luke Miels Growth drivers Deborah Waterhouse Brian McNamara Financial results and 2022 guidance Iain Mackay R&D update Dr Hal Barron Roger Connor Q&A David Redfern 3
Slide 4: Accelerating progress
Accelerating progress Emma Walmsley 4
Slide 5: 2021: strong results and accelerating momentum
2021: strong results and accelerating momentum Full-year 2021 performance 2021 Reported % Key highlights • Turnover: £34 billion (+5%), with targeted R&D 2022: step change in £m AER1 CER investment, support for new and ongoing launches, growth for new GSK and continued cost optimisation Turnover 34,
Slide 6: Excellent progress across all three strategic priorities
Excellent progress across all three strategic priorities Exciting pipeline of 64 Investment in mRNA1 Cabenuva, Apretude vaccines and medicines, capabilities and BD2 pioneer LA3 approach 22 in pivotal studies to strengthen pipeline to HIV4 medicine Innovation Xevudy c.£1bn FY Daprodustat met all Succ
Slide 7: Ready to unlock long-term value with the demerger in mid-2022
Ready to unlock long-term value with the demerger in mid-2022 On track to demerge world-leading A new GSK with new ambitions Step change in long-term growth Consumer Healthcare business Unlock potential in new GSK and We unite science, talent >5% new Consumer Healthcare and technology to get Strengt
Slide 8: Growth drivers
Growth drivers Luke Miels Deborah Waterhouse Brian McNamara 8
Slide 9: New and Specialty: strong double-digit growth (+26%, +14% ex-Xevudy)
New and Specialty: strong double-digit growth (+26%, +14% ex-Xevudy) Trelegy: £1,217m, +57% – Sustained momentum across year (+53% in Q4) Nucala: £1,142m, +22% – Leading IL-5 biologic for eosinophil-led diseases Share of US triple therapy patients (COPD1)2 60 % – Dual indication driving demand Marke
Slide 10: Vaccines: Shingrix poised for 2022 recovery
Vaccines: Shingrix poised for 2022 recovery Shingrix sequential growth3 in 2021 underpins 2021: Shingrix sales £1,721m, -9% recovery trajectory • US: strong sequential growth from Q2 to Q4 driven by increased +19% non-retail use following initial COVID-19 vaccination disruption 600 +70% • EU: driven
Slide 11: HIV: innovation medicines accelerating growth
HIV: innovation medicines1 accelerating growth Delivering on growth targets Dovato driving momentum across all regions 1,600 4.0 1,400 3.5 • Best-in-class two-drug regimen 1,200 3.0 • Sales more than doubled in 2021 to £787m, reaching Innovation sales (£m) 16% of total HIV sales HIV sales growth % 1
Slide 12: HIV: shifting the paradigm towards long-acting regimens
HIV: shifting the paradigm towards long-acting regimens Momentum building behind Cabenuva Encouraging launch for Apretude • US two-monthly dosing approved • 1st LA Injectable for PrEP1, dosed every two months • Treatment dosing days reduced from 365 to six • Approved by US FDA on 20 December 2021 •
Slide 13: Global leader in Consumer Healthcare
Global leader in Consumer Healthcare Full-year 2021 +4%1 sales growth despite -1% headwind from cold and flu Accelerating business momentum Strong category performance despite New Consumer Healthcare expects Q4 2021 +11%1 the adverse impact of COVID-19 on to deliver superior growth respiratory healt
Slide 14: Creating a world-leader in Consumer Healthcare
Creating a world-leader in Consumer Healthcare World-class portfolio, category-leading brands and global scale Strategy Growth Capital allocation New Consumer Healthcare Delivering superior growth and Focus on driving free cash flow purpose, strategy, and culture attractive sustainable returns Respo
Slide 15: Financial results and 2022 guidance
Financial results and 2022 guidance Iain Mackay
Slide 16: Headline results
Headline results Reported Reported Q4 2021 % % £m AER CER £m AER CER Turnover 9,527 9 13 34,114 - 5 Total operating profit 895 (16) 1 6,201 (20) (9) Total EPS 15.0p 10 31 87.6p (24) (13) Adj. operating profit 1,893 4 15 8,806 (1) 9 Adj. EPS 25.6p 9 22 113.2p (2) 9 Free cash flow 2,901 (7) n/a 4,437
Slide 17: Results reconciliation
Results reconciliation 2021 Disposals, significant Total Intangible Intangible Major Transaction legal and Separation Adjusted results amortisation impairment restructuring related other costs results Turnover 34.1 34.1 (£bn) Operating 6.2 0.8 0.3 0.6 1.2 (0.6) 0.3 8.8 profit (£bn) EPS 87.6 12.9 4.8
Slide 18: Group sales and adjusted operating margins
Group sales and adjusted operating margins 2021 Sales Adjusted operating margin All figures £m 2020 sales at ’20 rates 34,099 2020 margin 26.1% Pharma up +10% CER 1,664 COGS up +8% CER 0.8% Vaccines up +2% CER 129 SG&A down -1% CER 1.8% +0.9% CER Consumer flat CER 36 R&D up +8% CER 0.3% Corporate do
Slide 19: Adjusted operating profit to net income
Adjusted operating profit to net income 2020 2021 £m £m Operating profit 8,906 8,806 Net finance expense (844) (753) Share of associates 33 33 Tax (1,295) (1,415) Tax rate 16.0% 17.5% Non-controlling interests (1,031) (1,006) Net income 5,769 5,665 19
Slide 20: Free cash flow of £4.4bn
Free cash flow of £4.4bn £m Key drivers 2020 free cash flow 5,406 Increased adjusted operating profit at CER Lower CCL1 29 Lower dividends to Non-Controlling Interests Lower net operating cash2 500 Increased purchases of intangibles Higher net Capex3 1,100 Reduced proceeds following completion of Co
Slide 21: Pharmaceuticals
Pharmaceuticals 2021 Sales Operating profit and margin Sales factors All figures £m 2021 Total : £17,729m: +10% CER; +4% AER Q4 Total : £5,221m: +25% CER; +20% AER +330 bps CER New and Specialty growth +190 bps AER +26% CER Xevudy +20% AER 26.4% -6% CER 24.5% Favourable US return and rebate -11% AER
Slide 22: Vaccines
Vaccines 2021 Sales Operating profit and margin Sales factors All figures £m 2021 Total : £6,778m: +2% CER; -3% AER Q4 Total : £1,809m: -7% CER; -10% AER Pandemic adjuvant sales -480 bps CER -560 bps AER Shingrix -5% CER 38.9% -9% AER Unfavourable US return and rebate 6,982 33.3% adjustments 733 6,3
Slide 23: Consumer Healthcare
Consumer Healthcare 2021 Sales Operating profit and margin Sales factors All figures £m 2021 Total : £9,607m: Flat CER; -4% AER Good underlying performance across Q4 Total : £2,497m: +10% CER; +6% AER +200 bps CER portfolio, except Respiratory health +120 bps AER Historically weak cold and flu seaso
Slide 24: 2022 guidance and 2021-26 outlooks
2022 guidance and 2021-26 outlooks Step change in growth for new GSK 2022 guidance Dividend2 2021-26 outlooks1 New GSK sales1 GSK New GSK sales Between 5% to 7% growth 49p in 2022, comprised of 44p for new More than 5% CAGR GSK and 5p representing Consumer whilst part of the group New GSK adj. opera
Slide 25: R&D update
R&D update Dr Hal Barron
Slide 26: 2021: significant R&D progress across the pipeline
2021: significant R&D progress across the pipeline 3 first regulatory approvals Apretude Xevudy Jemperli Menveo liquid Apretude Zejula tablet 7 regulatory submissions Xevudy MMR US Medicago COVID vaccine Rotarix liquid 3 positive pivotal study readouts daprodustat Xevudy Medicago COVID vaccine liner
Slide 27: H2 2021: two major pipeline achievements demonstrate R&D momentum
H2 2021: two major pipeline achievements demonstrate R&D momentum Daprodustat: five positive phase III trials Apretude: first long-acting injectable for PrEP; for a potential best-in-class treatment superior efficacy vs standard of care6 • Daprodustat as effective as ESA1 in treating anaemia of CKD2
Slide 28: H1 2022: pivotal data expected for differentiated RSV vaccine candidate
H1 2022: pivotal data expected for differentiated RSV vaccine candidate RSV older adults: vaccine candidate with Antibody Response T-Cell Response best-in-class potential Young Older Young Older GMFs and 95% CIs for RSVPreF3 CD4+ T cells** • >1bn 60+ people globally exposed to RSV annually Adults Ad
Slide 29: Significant R&D pipeline news flow continues
Significant R&D pipeline news flow continues 2022 2023 Regulatory Rotarix (liquid US): H2 RSV older adults - vaccine decisions daprodustat - anaemia of chronic kidney disease Blenrep - DREAMM-3 (3L+ multiple myeloma) Regulatory daprodustat - ASCEND (anaemia of CKD): H1 RSV maternal - vaccine submiss
Slide 30: Q&A
Q&A 30
Slide 31: Appendix
Appendix
Slide 32: R&D pipeline: 64 potential vaccines and medicines
R&D pipeline 64 potential vaccines and medicines Phase I Phase II Phase III/Registration C. difficile* vaccine M alaria (fractional dose)* vaccine Bexsero infants (US) vaccine Klebsiella pneum oniae* vaccine S. aureus* vaccine 1 COVID-19 (M edicago)* vaccine Ɨ Infectious Diseases SAM (COVID-19 m ode
Slide 33: R&D pipeline: Achieved select late-stage milestones in 2021
R&D pipeline Achieved select late-stage milestones in 2021 H1 2021 H2 2021 Regulatory decisions Jemperli^ - dMMR/MSI-H2 2L endometrial cancer Shingrix - immuno-compromised Xevudy (sotrovimab) - US EUA3 in mild to moderate Jemperli^ - dMMR/MSI-H solid tumours COVID-19 Nucala - nasal polyposis Apretud
Slide 34: R&D pipeline: Upcoming select late-stage milestones
R&D pipeline Upcoming select late-stage milestones 2022 2023 Regulatory decisions Priorix (MMR US): H2 RSV older adults vaccine Menveo liquid: H2 daprodustat - anaemia of chronic kidney disease Rotarix (liquid US): H2 Blenrep - DREAMM-3 (3L+ MM5) Regulatory COVID-19 (Medicago) vaccine US: H1 RSV mat
Slide 35: R&D pipeline: Changes in the portfolio since Q3 2021
R&D pipeline Changes in the portfolio since Q3 2021 New to Phase I New to Phase II New to Phase III New to Registration GSK3884464* heart failure varicella new strain vaccine Rotarix (liquid US) vaccine GSK3888130 (IL7 ) multiple sclerosis COVID-19 (Medicago) vaccine GSK4532990* (ARO-HSD) non-alcoho
Slide 36: 2022 new GSK outlook considerations to support analyst modelling
2022 new GSK outlook considerations to support analyst modelling Specialty turnover Vaccines turnover General Medicines turnover Increase approximately 10% for Specialty, Increase low-teens %, excluding pandemic adjuvant Slight decrease excluding Xevudy sales sales HIV to increase mid single-digit %
Slide 37: Dividend policy
Dividend policy New GSK New Consumer Healthcare (CH) To be determined by new Board of CH1 Dividend policy No change to expected progressive dividend policy and pay-out ratio Expected 30% to 50% pay-out ratio 44p per share H1: N/A (included in current GSK group 27p per share) 2022 5p per share repres
Slide 38: Expected product groupings for New GSK to support analyst modelling
Expected product groupings for New GSK to support analyst modelling For reporting from Q1 2022 Specialty Vaccines General Medicines HIV Meningitis Respiratory Dolutegravir products Bexsero Anoro Ellipta Tivicay Menveo Arnuity Ellipta Triumeq Other Avamys/Veramyst Juluca Flixotide/Flovent Dovato Infl
Slide 39: Zejula: COVID-19 continues to impact ovarian cancer diagnosis and treatment
Zejula: COVID-19 continues to impact ovarian cancer diagnosis and treatment Ovarian cancer diagnoses down c.22% Debulking surgeries down c.17% below 2019 monthly averages1,2 below 2019 monthly averages1,2 US Newly Diagnosed Ovarian Cancer Patients2 US Ovarian Cancer Debulking Surgeries2 2, 500 7M 35
Slide 40: Expected costs and savings under Major Restructuring Programmes & Consumer Separation
Expected costs and savings under Major Restructuring Programmes & Consumer Separation Q4 FY Cumulative 2022 2023 2024 Date 2021 2021 £bn Actuals to Announced 2020 Total Actuals Actuals Projected 1 Lifetime 2 Savings 0.3 0.1 0.5 0.5 0.5 2018 Restructuring Q2’18 Total charges 1.5 - - 0.1 1.6 Programme
Slide 41: Illustrative timeline of key 2022 financial events
Illustrative timeline of key 2022 financial events Historical financial statements New GSK sales and adj. OP1 GSK group restatements for New Consumer Healthcare first for new GSK as continuing 2022 guidance with FY21 new GSK and CH segments standalone financial reporting business (e.g. P&L detail, r