30th annual j.p. morgan healthcare conference · 2017-01-13 · migalastat hcl (fabry’s ... le...
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30th Annual J.P. Morgan Healthcare Conference
Simon Dingemans, CFOJanuary 10, 2012y ,
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Underlying sales growth has been broadly sourcedy g g y
38% of GSK’s overall business is outside the US & Europe38% of GSK s overall business is outside the US & Europe
Pharma*67% f GSK C
Vaccines13% of GSK
+16% 9mths YTD
Europe: 31% of GSK-3% 9 months 2011
EMAP: 27% of GSK[+15%] 9 months 2011
Cx: 18% of GSK+5% in 2010
67% of GSK+3% 9mths YTD
Consumer20% of GSK
+5% 9mths YTD
2Group sales; CER growth rates; % of GSK excluding pandemic, Avandia and Valtrex* Excluding vaccines.
+7% in 2009
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Pipeline delivery and visibility continuesy y
Key phase III studies for 15 assets in 2011 and 2012; data in house for 8; >30 studies from 12 of these assets expected to report in 2012
Data Announced in 2011 Data Expected in 2012
1120212 (MEK inhibitor)
2118436 (BRAF i hibit )2118436 (BRAF inhibitor)
2402968 (DMD)
‘444+’719 (LABA+LAMA)
albiglutide (GLP-1 for T2D)
dolutegravir (HIV integrase)
IPX066 (Parkinson’s disease) EU filing strategy under review
MAGE-A3 (therapeutic vaccine)
migalastat HCl (Fabry’s)
Mosquirix (malaria vaccine)q ( )
otelixizumab (type I diabetes) Ph III not progressing
Promacta (hepatitis C) Data under review
Relovair (LABA+ICS for asthma/COPD)
3
Relovair (LABA+ICS for asthma/COPD)
Tykerb (cancer) Negative TEACH study
Votrient (cancer)
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GSK Financial Architecture: Driving Returnsg
Sales growth
Operating le erage EPSleverage
Returns toshareholders
Focus on
returns
Focus on
returnsFinancial efficiency Free Cash Flow
returns returns
Cash flow
4
growth
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GSK Financial Architecture: Driving Returnsg
Turnover
Sales growthFinance embedded in decision making
Operating le erage
Investing in IT systems to improve decisions
leverage Greater focus on procurement capabilities
Simplification of supply chainFinancial efficiency Globalisation of support functions
p pp y
Cash flow
Driving additional savings from OE program
5
growth Operating Profit & Margin
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GSK Financial Architecture: Driving Returnsg
Turnover
Sales growthFinance embedded in decision making
Operating le erage
Investing in IT systems to improve decisionsExpect margin*
t b ileverage Greater focus on procurement capabilities
Simplification of supply chain
to begin to improve gradually
Financial efficiency Globalisation of support functions
p pp yfrom 2012
Cash flow
Driving additional savings from OE program
6
growth Operating Profit & Margin
*Operating profit margin excluding legal and OOI
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GSK Financial Architecture: Driving Returnsg
Operating ProfitSales growth
Operating Profit
Continue to target
Operating le erage 2% d i i fi ( 2010) b 2013
Continue to target A-1 / P-1 short-term debt rating
leverage ~2% reduction in finance rate (vs 2010) by 2013
Reduction in income tax rate by 2014
Financial efficiency
Long-term share buyback program
(~2% to 25%)
Cash flow
g y p g
7
growth EPS
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GSK Financial Architecture: Driving Returnsg
EBITDASales growth
EBITDA
Operating le erage Improved project management through global functions
Reduction in restructuring charges
leverage Improved project management through global functions
End-to-end working capital discipline
Financial efficiency Consistent CFROI benchmarking of investments
Cash flow Free cash flow
8
growth
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Measurement and Reporting aligned to Financial ArchitectureArchitecture
Simplified turnover disclosurep– Business– Regional
Sales growth
Core EPSOperating leverage
EPSFocus
Focus on core operating profit and marginEnd of middle column
Greater visibility on R&D spendg
on returns
CFROIEnd of middle column Free Cash FlowCash Conversion
Financial efficiency
Free Cash Flow
CFROIIRR
Working Capital days & % Cash flow from operations
Cash flow growth
9
Cash flow from operations growth
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GSK Financial Architecture: Driving Returnsg
Sales growth
Operating le erage EPSleverage
Returns toshareholders
Focus on
returns
Focus on
returnsFinancial efficiency Free Cash Flow
returns returns
Cash flow
10
growth
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GSK todayy
Broadly sourced growth and sales momentum
Large and maturing late-stage pipeline
Operational leverage & financial efficiencies
Strong cash flowStrong cash flow
Rigorous capital allocation
Commitment to grow dividends
Long-term share buyback programLong term share buyback program
11
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Thank you