Agenda. Q progress (15 mins) Emma Walmsley, Chief Executive Officer. Q financial results (15 mins)

Transcription

1 Emma Walmsley, CEO

2 Agenda Q progress (15 mins) Q financial results (15 mins) Emma Walmsley, Chief Executive Officer Simon Dingemans, Chief Financial Officer Q&A (30 mins) Break (15 mins) R&D update (60 mins) Dr Hal Barron Chief Scientific Officer and President R&D Q&A (60 mins) Informal reception 2

3 Q&A panel David Redfern Chief Strategy Officer, Chairman of ViiV Luke Miels President, Global Pharmaceuticals Brian McNamara CEO, GSK Consumer Healthcare Luc Debruyne President Global Vaccines Axel Hoos Oncology Therapy Area Kim Smith Global Research and Medical Strategy, ViiV Gijs van den Brink Immunoinflammation R&D Emmanuel Hanon R&D Vaccines John Lepore Patrick VallanceR&D Pipeline President R&D Kevin Sin R&D Pharmaceuticals Business Development Kate Knobil Chief Medical Officer Tony Wood Platform Tech & Science Pauline Williams Global Health 3

4 3 long-term priorities for all 3 businesses Innovation Performance Trust Culture 4

5 CER Sales growth in all 3 businesses; improved Group operating margin Pharmaceuticals +1% Vaccines +16% Consumer Healthcare +3% New Respiratory products +37%* HIV sales +11%; dolutegravir +18% Shingrix reported sales of 167 million US vaccines sales +61% Meningitis sales -3% Wellness sales +1%; Oral health sales +5%; Nutrition sales +1%; Skin sales +8% Group sales growth of +4% 80bp improvement in Group Adjusted operating margin Adjusted EPS growth of +10% FCF of 492 million 2018 guidance upgraded All growth rates and margin changes at CER. The definitions and reconciliations for non-ifrs measures are set out on page 39 of our Q earnings release *New Respiratory includes the Ellipta portfolio and Nucala 5

6 Respiratory: successfully transitioning to new portfolio Strong Trelegy launch reflects commercial prioritisation Nucala building momentum in a growing market New Respiratory products continue to perform Increased investment in the market Strong uptake in Europe Q2 Sales m +37%* COLUMBA long term safety data presented at ATS; gaining traction with physicians Other indications offer upside potential: COPD, HES, NP Q Q COPD: chronic obstructive pulmonary disease; HES: hypereosinophilic syndrome; NP: nasal polyposis * All growth rates and margin changes at CER. New Respiratory includes the Ellipta portfolio and Nucala 6

7 TRx shares Portfolio performance on track with GEMINI studies building confidence in 2DR outlook Dolutegravir maintaining leadership position in STR/Core Agent market Non inferior virologic outcomes and no emergent resistance seen 30% 25% Weekly TRx Shares by Product (STR+Core agent) 28.0% GEMINI studies demonstrate non-inferior virologic outcomes for DTG + 3TC vs DTG + TDF/FTC at Week 48 20% 15% 10% 5% 0% 13.8% (Tivicay) 13.4% (Triumeq) 4.9% 0.8% Rates of virologic success were high regardless of baseline viral load No participant who experienced virologic failure developed treatment emergent resistance to NRTI or INSTI in either arm Drug related adverse events were low in both arms but favoured DTG+3TC Tivicay Triumeq DTG Total Juluca Competitor Regulatory submissions planned before end 2018 Source: IQVIA NPA w/e 13 Jul

8 Shingrix: continued strong demand Demand significantly higher than 2017 Building a new standard of prevention 160, , , ,000 80,000 60,000 40,000 20,000 - Weekly Shingrix TRx volume vs 2017 competitor (weekly pharmacy administered doses) Weekly Shingrix TRx's - Actual Weekly competitor TRx PY Recommendations driving market demand 99% of known US market share 1 Strong recommendation received in Canada during Q2 2 Q sales of 167 million Capacity strong and increasing More than 3m doses administered 3 in US since launch Supplies increased and accelerated to meet demand, with doses shipping on regular basis Capacity to vaccinate more patients in 2018 than the total vaccinated in 2017 Sales expectations for 2018 increased to m Source: IQVIA NPA weekly TRx data 1. IQVIA data, represents ~60% of the market 2. National Advisory Committee on Immunization (Canada): A Strong recommendation applies to most populations/individuals and should be followed unless a clear and compelling rationale for an alternative approach is present 3. Doses administered includes retail data from IQVIA reporting plus an estimate of non-retail use (~60 / 40 split) as of 29 June

9 Driving our growth outlook beyond 2020 Continuing growth drivers Tivicay and Triumeq Nucala and Ellipta portfolio Bexsero and Menveo Shingrix Trelegy Juluca tafenoquine Nucala (COPD) DTG+3TC CAB+RPV Trelegy (asthma) 916 (BCMA) fostemsavir (TLR4) 165 (agm-csf) 254 (HIV MI) 404/ 836 (HBV) 557 (PI3Kd) 595 (PRMT5 inhibitor) 609 (ICOS) 656 (leucyl trna) 672 (IBAT) 745 (TRPV4) 756 (CXCR2) 762 (BET inhibitor) 794 (NY ESO-1) 847 (IL33R) 863 (HIF-PHI) 944 (topoisomerase IV inhibitor) 998 (OX40) CAB PrEP (HIV) Benlysta+ rituximab (SLE) Base business portfolio optimisation; limited exposure to patent expiries Consumer Health power brands 9

10 Capital allocation framework Key priorities for capital Innovation Invest in the business 1. Pharma pipeline including BD 2. Consumer Put (buy out completed June 2018) 3. Vaccines capacity Performance Improved cash generation Shareholder returns 80p per share expected for 2018 Focus on rebuilding free cash flow cover over time Target 1.25x to 1.5x FCF cover before returning to dividend growth Trust M&A Strict discipline on returns 10

11 Funding future growth Delivering growth Investing in our business Improved operating leverage Stronger cash generation Financial efficiencies 11