GlaxoSmithKline : FY 2021 results slides PDF - 5.1MB

Full year and Q4 2021 results

9 February 2022

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 to historical or current facts. They use words such as 'anticipate', 'estimate',

'expect', 'intend', 'will', 'project', 'plan', 'believe', 'target' and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. In particular, these include statements relating to future actions, prospective products or product approvals, future performance or results of current and anticipated products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, dividend payments and financial results.

Other than in accordance with its legal or regulatory obligations (including under the Market Abuse Regulations, UK Listing Rules and the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority), the Group undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Investors should, however, consult any additional disclosures that the Group may make in any documents which it publishes and/or files with the US Securities and Exchange Commission (SEC). All investors, wherever located, should take note of these disclosures. Accordingly, no assurance can be given that any particular expectation will be met and investors are cautioned not to place undue reliance on the forward- looking statements.

Forward-looking statements are subject to assumptions, inherent risks and uncertainties, many of which relate to factors that are beyond the Group's control or precise estimate. The Group cautions investors that a number of important factors, including those in this presentation, could cause actual results to differ

materially from those expressed or implied in any forward-looking statement. Such factors include, but are not limited to, those discussed under Item 3.D 'Risk factors' in the Group's Annual Report on Form 20-F for FY 2020 and any impacts of the COVID-19 pandemic. Any forward-looking statements made by or on behalf of the Group speak only as of the date they are made and are based upon the knowledge and information available to the Directors on the date of this presentation.

A number of adjusted measures are used to report the performance of our business, which are non-IFRS measures. These measures are defined and reconciliations to the nearest IFRS measure are available in our full year and fourth quarter 2021 earnings release and Annual Report on Form 20-F for FY 2020.

All outlooks, targets, ambitions and expectations regarding future performance and the dividend should be read together with the section "Basis of preparation,

assumptions and cautionary statements" on pages 5-7 of our stock-exchange announcement relating to an update to investors dated 23 June 2021 and the "Guidance, assumptions and cautionary statements" on pages 62 and 63 of our full year and fourth quarter 2021 earnings release. All outlook and ambition statements are given on a constant currency basis and use 2021 actual exchange rates as a base, assuming a continuation of Q1 2021 closing rates. Compound annual growth rate is for the five years to 2026, using 2021 as the base year. Pipeline sales are risk-adjusted and include anticipated sales of new products and life-cycle innovation launched from 2021 onwards. Note: COVID-19 solutions are excluded from the above.

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Agenda

Accelerating progress

Growth drivers

Financial results and 2022 guidance

R&D update

Q&A

Emma Walmsley

Luke Miels

Deborah Waterhouse

Brian McNamara

Iain Mackay

Dr Hal Barron

Roger Connor

David Redfern

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Accelerating progress

Emma Walmsley

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2021: strong results and accelerating momentum

Full-year 2021 performance

		2021		Reported %
		£m		AER1	CER
Turnover	34,114	-	5
Total operating	6,201	(20)	(9)
profit
Total EPS	87.6p	(24)	(13)
Adj. operating
profit	8,806	(1)	9
Adj. EPS	113.2p	(2)	9
Free cash flow	4,437	(18)	n/a

Exceeded raised guidance:

Adj. EPS stable2,3

Key highlights

• Turnover: £34 billion (+5%), with targeted R&D investment, support for new and ongoing launches, and continued cost optimisation
• Strong business momentum: Pharmaceuticals +10% (incl. New and Specialty +26%), Vaccines +2%, Consumer +4%4
• Adj. operating profit: £9 billion (+9%)
• Adj. EPS: 113.2p (+9%)
• R&D pipeline: three major product approvals in 2021 with multiple late-stage milestones in 2022-23
• New Consumer Healthcare: Capital Markets Day on 28 February 2022 followed by demerger in mid-2022

2022: step change in growth for new GSK

Full-year 2022 guidance2,3

5-7% sales growth

12-14% adj. operating profit growth

Absolute values at actual exchange rates; changes at constant exchange rates (CER) and for the full year (FY) 2021, unless stated otherwise. 1. Actual exchange rate 2. Excluding COVID-19 solutions 3. At constant exchange rates or CER 4. Excluding brands divested/under review. All outlooks, targets, ambitions and expectations regarding future performance and the dividend should be read together with the section "Guidance, assumptions and cautionary statements" on pages 62 and 63 of our full year and fourth quarter 2021 earnings release. All outlook and ambition statements are

given on a constant currency basis and use 2021 actual exchange rates as a base, assuming a continuation of Q1 2021 closing rates. Compound annual growth rate is for the five years to 2026, using 2021 as the base year. Pipeline sales are risk-adjusted and include anticipated sales of new
products and life-cycle innovation launched from 2021 onwards. Note: COVID-19 solutions are excluded from the above.	5