GlaxoSmithKline : Bernstein Consumer Healthcare & Nutrition Seminar, London

GSK Consumer Healthcare

Tobias Hestler

CFO, GSK Consumer Healthcare

June 2019

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 2018. 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 first quarter 2019 earnings release and Annual Report on Form 20-F for FY 2018.

All expectations and targets regarding future performance and the dividend should be read together with "Assumptions related to 2019 guidance and 2016-2020 outlook" on page 36 of our first quarter 2019 earnings release.

2

Creation of GSK and Pfizer Consumer Healthcare Joint Venture

•Creates new world leader in

Consumer Healthcare

•Offers significant opportunities for both cost synergies and growth

•Separation creates a new global company and investment proposition

3

Positive consumer healthcare industry trends

Increasing health awareness and self care

77%1of consumers want to take more control over decisions about their health

Emerging middle class

Almost 2.4 billion3more emerging middle class consumers by 2030 vs 2015

1. IPSOS Trend Survey 2017 2. UN DESA 3. Brookings Institution

Ageing population

1.4 billion2aged 60+ by 2030, an increase of 0.5 billion vs 2015

Innovation

Unmet consumer

needs(switches, products, formats, channels, devices)

4

Creation of a global leader in consumer healthcare

With scale and strong capabilities

Combined sales of approximately £9.8bn1

#1 in OTC

• Leadership positions in Pain Relief, Respiratory and VMS3

#1 position in Therapeutic Oral Health2

Strong geographic footprint

• #1 in US, #2 in China3
• 29% of sales in Emerging Markets1

Proven integration capability

Value creation

• £0.5bn cost synergy potential

1. Based on 2018 reported results. £GBP figure includes: Pfizer 2018 revenues reported under US GAAP translated at 1.33 $:£ and GSK JV sales reported under IFRS and

adjusted for perimeter changes that GSK will make to the business it contributes to the Joint Venture. Figure excludes any impact from potential future divestments.5 2. GSK analysis based on Nielsen, IRI and Euromonitor data; 3. Nicholas Hall's DB6 Global OTC Database, 2018

Category leading positions of combined portfolio

#1

#1

#1

#2

#1

#3

Digestive

Therapeutic

Pain Relief1

VMS1

Respiratory1

Skin Health1

Health1

Oral Health2

- vv

- x

6

1. Nicholas Hall's DB6 Global OTC Database, 2018. For Skin Health, share and ranking based on OTC derms category. 2. GSK analysis based on Nielsen, IRI and Euromonitor data

Our Consumer Healthcare strategy and priorities

Our purpose:

to help people do more, feel better, live longer

Our strategy:

meet the everyday healthcare needs of consumers by building consumer preferred and expert recommended brands, differentiated by science and insight-driven innovation

Our priorities:

Innovation			Performance			Trust
•Brilliant execution of launches		•	Sustained above market growth		•	Reliable supply
•Strong, differentiated pipeline of		•	Competitive cost structure,		•	Improved reputation
consumer-led,science-based			margin and cash flow		•	Highly engaged employees
innovation and claims

7

Deliver an industry leading margin

						New guidance for new JV
						Mid to high 20s%
						by 2022 1
				•Power brand mix	Guidance for existing GSK
				Consumer Healthcare
			19.8%	•Cost & cash discipline	Approaching mid 20s%
			by 2022 1
			•Strategic resource allocation
		17.7%		•Supply chain efficiency
	15.5%				+
				•	£0.5bn synergies
11.3%				•	Up to 25% reinvested
FY 2015	FY 2016	FY 2017	FY 2018			2022

1At 2017 constant exchange rates.Expected 20%+ operating margin by 2020 at 2015 constant exchange rates.	8
Historical margins shown for the GSK Consumer Healthcare segment are at respective actual rates

Q&A