GSK Sir Andrew Witty, CEO JP Morgan Conference 12 January 2016 - PowerPoint PPT Presentation

GSK Sir Andrew Witty, CEO JP Morgan Conference 12 January 2016

Progress through 2015 positions GSK to respond to global changes and maximise opportunities Global leadership positions underpin future growth 3 growth businesses ^ Balanced geographies ^ - 2016 core EPS expected to reach double digit growth (CER)* - 2016 to 2020 outlook core EPS mid-to- high single digit CAGR growth (CER)** Cx US 26% Int Financial discipline Innovation strength 34% - Synergies and cost - Potential to file up to 39% savings 20 assets by 2020 Rx - R&D fixed cost - Focused and Vx 59% reduction sustainable R&D 15% platform EU 27% Dividend - 2015-17 continued expectation to pay an annual ordinary dividend of 80p per share - Special dividend planned to return ~£1bn (20p per share) with Q415 dividend ^ Based on 2015 9 month sales 2 * Per Q3 Results statement **Outlook presented on May 6 2015

Significant growth from new products New Pharma products** showing strong contribution New product growth* more than Q3 2015 sales offsets Advair decline 5.6% 4.1% 4.8% 4.4% 6.1% 14.0% 13.9% Q1 Q2 Q3 Q1 15 Q2 15 Q3 15 New £412m product £321m growth*^ £221m Seretide/ Advair £135m £141m decline^ £182m 86% 86% 94% 94% 95% 96% 96% GSK J&J Novartis Sanofi Pfizer Lilly AZN Other Pharma products New Pharma launches **New pharma products defined as products launched since Q1 2012 *New products defined as: Rx: Breo, Anoro, Incruse, Arnuity, Tanzeum, 3 GSK Includes GSK pharma and HIV products (ViiV). Comparison to companies with primary and secondary pharma Tivicay, Triumeq. Vx: Menveo, Bexsero and material new launches. Data source, company reports – GSK analysis. In some instances number don’t add to 100% due to ^Growth and the decline in the respective quarters on a Sterling basis rounding. No vaccines launches/sales included (except for J&J where is it not possible to separate but immaterial). Consumer, animal health, generics units excluded for all companies.

Select key 2015 milestones 3 part Novartis transaction completed in March Industry leading transformation of commercial operating model Integration and significant cost savings on track Key 11 new products on track to generate >£6bn annual sales by 2020* Substantial R&D progress on next wave of assets * Includes key recent and near-term launches plus late-stage assets. Rx: Breo, Anoro, Incruse, Arnuity, Tanzeum, Nucala, Tivicay, Triumeq, Vx: Menveo, Bexsero, Shingrix. 4

Pharma 2015: new Respiratory products gaining scale Breo Anoro and Incruse Significant improvement in US ICS/LABA Improving share of US LAMA market post new managed market share post asthma launch care coverage and Open Triple use in Q4 14% 30% 12% 25% Share of market Share of market 10% 20% 8% 15% 6% 10% 4% 5% 2% 0% 0% TRx NRx NBRx TRx NRx NBRx Source: Weekly IMS NPA 5

Pharma 2015: HIV growth acceleration Share of all dynamic patients vs competitor products Share of Naïve Patients (3rd Agent + STR) 35% 40% Total DTG 30% 29% 28.6% 25% 35% Total DTG 20% 33.4% 15% 30% 10% 26% 5% 25% 0% 20% Share of Switch Patients 45% 15% 40% Total DTG 35% 37.8% 10% 30% 25% 23.4% 5% 20% 15% 10% 0% 5% 0% Rolling three months Source: Ipsos Healthcare US HIV Therapy Monitor, November 2015 6

Pharma 2015: BMS transactions bolstering a leading pipeline with highly complementary assets Next generation* † agents with game changing potential Maturation Inhibitor* † w/ possible combinations with DTG and/or CAB Attachment Inhibitor* † for highly Search for remission and cure experienced patients Collaborations Long acting two drug regimens cabotegravir (744LAP) + RPV LA* Dolutegravir regimens Triumeq Prevention Advanced therapeutics cabotegravir (744LAP)* Tivicay Legacy ARV drug portfolio Two drug regimens DTG RPV (dolutegravir/rilpivirine)* DTG 3TC (dolutegravir/lamivudine)* *Investigational treatments 7 † Subject to appropriate validation by relevant regulatory authorities

Vaccines 2015: broad portfolio driving growth, realising benefits from integration and ongoing investments New meningitis portfolio Shingrix 90-97% efficacy against Proactive supply 9M global sales +63%* shingles in two Phase III studies network upgrades 100 140 enabled accelerated 90 Efficacy against shingles % delivery schedule of 120 Flu vaccines in 80 41 100 Q315 vs 2014 70 £ million 60 80 50 60 30 Established three 40 global R&D centres 40 81 30 in Rixensart, 20 43 20 Belgium; Siena, 7 10 Italy and Rockville, 11 0 0 Maryland Q1 Q2 Q3 70+ yrs 50-59 yrs 60-69 yrs Menveo Bexsero *Based on 2015 9 month pro forma (CER) for newly acquired meningitis portfolio 8 Q1 sales only includes 1 months of sales due to timing of the Novartis transaction

Consumer 2015: innovation and geographic position driving growth, focus on accelerating integration 9M sales +7%, core operating Competitive global footprint with profit +19%* opportunities for expansion* US 24% Flonase RxCx switch success Int contributed >50% of US Q3 growth 47% EU 29% Integration progress : - Made >6,300 appointments - Completed required divestments - Consolidation ~80% complete with 48 commercial sites consolidated *Based on 2015 9 month pro forma CER basis 9

R&D strategy: focus on long term sustainable innovation Focus where Accelerate Balance of internal Reduce fixed cost science is Discovery output vs external to drive ROI innovative • Now have 30 DPUs, of which 2/3’s are • Of the ~40 assets profiled, • 60% of NMEs* in the clinic • Balance discovery and development from the original 2009 set. Average 20% 80% of new molecules, are home-grown, 40% (pharma split 38% Discovery; 62% turnover every 3 year cycle biologicals and vaccines are partnered or in-licensed Development) potentially 1 st in class • 65% of NMEs* in the clinic were either • Divested marketed oncology discovered or worked on by the DPUs portfolio for $16bn Portfolio of innovation, focussed across six core areas of scientific research and development HIV/ Immuno- Rare Respiratory Infectious Oncology Vaccines Inflammation Diseases Diseases *NMEs: Phase I – III/submitted, per pipeline chart 10

Potential to file up to 20 assets by 2020 2014 2018 2021 to to to 2017 2020 2025 7 NMEs & 5 PLEs 11 NMEs & 5 PLEs 21 NMEs & 5 PLEs tarextumab † sirukumab GSK3008348 GSK525762 GSK3196165 RSV paediatric Nucala sirukumab mepolizumab GSK2398852+ (mepolizumab) IL-6 m Ab IL-5 m Ab Notch 2/3 m Ab GSK2315698 IL-6 m Ab Alpha V beta 6 BET inhibitor GM-CSF m Ab IL-5 m Ab SAP m Ab + SAP integrin Respiratory Rheumatoid Nasal Pancreatic depleter antagonist Therapy sy ncy tial virus Severe Asthma IPF Resistant RA RA, OA prophy laxis Severe Asthma Arthritis Poly posis Cancer, SCLC Amy loidosis mepolizumab GSK2696273 mepolizumab GSK525762 GSK2998728 † danirixin Long acting IL-5 GSK2330811 GSK2696277 †^ COPD  IL-5 m Ab Ex-vivo stem CGT IL-5 m Ab BET inhibitor TTR production CXCR2 m Ab (NBE) OSM m Ab Ex-vivo stem CGT Solid Tumours, inhibitor antagonist Haematological TTR Sy stemic Beta COPD ADA-SCID HES Malignancies Cardiomy opathy COPD Asthma, Others Sclerosis Thalassemia COPD vaccine mepolizumab GSK2696274 dolutegravir + GSK2879552 daprodustat* GSK2269557 IL5/13 bispecific GSK2618960 daprodustat* IL-5 m Ab Ex-vivo stem CGT lamivudine FDC LSD1 inhibitor Prolyl PI3 kinase delta antibody IL-7 receptor Prolyl Respiratory Integrase Acute My eloid hydroxylase inhibitor m Ab hydroxylase Sjogren’s Metachromatic inhibitor+NRTI Leukaemia, inhibitor inhibitor (topical) HIV / Inf ectious Diseases EGPA Leukody strophy HIV SCLC Anaemia of CKD COPD, Asthma Asthma Sy ndrome W ound Healing Immuno-Inflammation fluticasone GSK2696275 cabotegravir GSK3174998 MenABCWY GSK2862277 GSK2878175 GSK2831781 mepolizumab Oncology furoate+vilanterol Ex-vivo stem CGT Long acting OX40 agonist m Ab US filing TNFR1 dAb NS5B inhibitor LAG-3 m Ab IL-5 m Ab +umeclidinium integrase Solid tumours, Meningococcal Rare Diseases I CS/LABA/LAMA W iscott-Aldrich inhibitor Haematological Acute Lung Autoimmune Severe Atopic A,B,C,W and Y Sy ndrome COPD HIV, HIV PrEP Malignancies Injury HCV Diseases Dermatitis disease prophylaxis Other Pharma dolutegravir + GSK2998728 † gepotidacin GSK3377794 † # GSK2245035 GSK3228836 † GSK2982772 RSV maternal Vaccines rilpivirine TTR production Type 2 NY-ESO-1 TCR TLR7 agonist Antisense RIP1 kinase Integrase inhibitor inhibitor topoisom erase Sarcoma, Mult. oligonucleotide inhibitor Respiratory † Subject to exercise of option + NNRTI inhibitor My el., Melanoma Psoriasis, RA, sy ncy tial virus # Subject to collaborator agreement HIV FAP Bacterial Inf. Ovarian, NSCLC Asthma HBV UC prophy laxis ^ EU filing * USAN, INN approval pending GSK3359609 Benlysta Shingrix sirukumab GSK3191812 belimumab + GSK3050002 GBS maternal  Planned to be filed post 2025 Subcutaneous IL-6 m Ab ICOS agonist m Ab TSLP dAb CD20 CCL20 m Ab BLyS m Ab Solid tumours, BLyS+CD20 Group B Sjogren’s Haematological Herpes Zoster Giant Cell Psoriatic streptococcus Malignancies SLE prophy laxis Arteritis Asthma Sy ndrome Arthritis prophy laxis 11 See www.gsk.com for full clinical pipeline