Andrew Witty
Chief Executive Officer

 

We are reducing risk by broadening and balancing our portfolio, diversifying into new product areas that show potential, while also fully capturing opportunities for our products across all geographic boundaries.

•		Drive growth in the pharmaceutical business in our core markets
•		Deliver our ambitious vaccines forecast
•		Fulfil the potential of emerging markets
•		Expand our business in Japan
•		Grow the Consumer Healthcare business

www.gsk.com/mission-strategy

 

We are striving to build one of the strongest pipelines in the industry. We are transforming R&D to ensure that we not only deliver the current pipeline but are also able to sustain the flow of products for years to come.

•		Focus on the best science
•		Diversify through externalisation
•		Re-personalise R&D
•		Focus on return on investment

www.gsk.com/mission-strategy

 

GSK is a complex organisation. We recognise that we need to simplify our operating model further, changing the way we work, removing unnecessary processes and structures which slow us down and distract us from our mission.

•		Evolve our commercial model
•		Re-shape manufacturing
•		Streamline our processes
•		Reduce working capital

www.gsk.com/mission-strategy

 

A year in numbers

£24bn		£4.7bn
Turnover		Free cash flow
88.6p		12
Total earnings		Products launched
per share		in 2008
57p		30
Dividend		Products in late stage
per share		development

 

Results and strategic priorities 2008

At a glance

•		Total Group turnover was £24.4 billion, down 3% CER*, up 7% in sterling terms
•		Pharmaceutical turnover was £20.4 billion, down 3% CER, Consumer Healthcare turnover up 3% CER to £4 billion
•		Emerging Markets sales up 12% CER to £2.3 billion
•		Vaccines sales up 15% CER to £2.5 billion
•		EPS before major restructuring 104.7p down 9% CER, up 6% in sterling terms

•		Excluding genericised products, Avandia and pre-pandemic preparations, our core pharmaceuticals business had turnover of £16.4 billion and grew by 10%
•		Continued market share growth in Oral healthcare and Nutritional healthcare but sales fell in OTC due to lower sales of smoking cessation products
•		Transactions with Aspen and BMS executed to build broader and more geographically diverse portfollio

•		12 key products launched, including Tyverb, Volibris and Avamys in Europe and Treximet, Entereg, Promacta, Kinrix and Rotarix in the USA.
•		Secured 17% of FDA approvals for new chemical entities and vaccines
•		Five new assets moved into phase III development during 2008
•		Created 35 Discovery Performance Units, small teams each with three-year funding in place
•		Entered or expanded 21 new drug discovery alliances

•		Restructuring programme expanded to deliver annual savings of £1.7 billion by 2011
•		Rescaled and redeployed US pharmaceuticals sales force
•		Delivered more than £500 million of cash flow benefits from the working capital reduction programme which started in September 2008

 

Results and strategic priorities 2008

 

 

The information in this document is only a summary of certain information contained in our Annual Report for the year ended 31 December 2008 and does not contain all the information needed to give as full an understanding of the results, state of affairs, risks and uncertainties of the company and the Group as is provided by the full financial statements, Directors’ Report, Remuneration Report and Auditors’ Report contained in the Annual Report.

The Annual Report and the Notice of Annual General Meeting are available at

www.gsk.com/annualreport

The GSK Annual General Meeting will be held at 2.30pm on Wednesday 20 May 2009 at:

The Queen Elizabeth II Conference Centre
Broad Sanctuary
Westminster
London SW1P 3EE

You may choose to receive future notifications from us by email by registering accordingly on www.shareview.co.uk.

You can request printed copies of our financial reports from:

•		Equiniti, the company’s registrar in the UK; and from
•		The Bank of New York Mellon, the company’s depository in the USA.

Security type		Contact address		Telephone
Ordinary shares,		Aspect House		0871 384 2991
administered by		Spencer Road		(inside the UK)
Equiniti Limited		Lancing BN99 6DA		+44(0) 121 415 7067
				(outside the UK)
ADRs, administered		BNY Mellon		1 877 353 1154
by The Bank of		Shareowner Services		(US toll free)
New York Mellon		PO Box 358516		+1 201 680 6825
		Pittsburgh, PA		(outside the USA)
		15252-8516

The Board has declared dividends for 2008:

						2008			2007
Dividend		Payment date				pence			pence
First interim		10 July 2008					13			12
Second interim		9 October 2008					13			12
Third interim		8 January 2009					14			13
Fourth interim		9 April 2009					17			16
Total							57			53

Quarter

Ex-dividend date

Record date

Payment date

Q4 2008

11 Feb 2009

13 Feb 2009

9 Apr 2009

Q1 2009

29 Apr 2009

1 May 2009

9 Jul 2009

Q2 2009

29 Jul 2009

31 Jul 2009

8 Oct 2009

Q3 2009

4 Nov 2009

6 Nov 2009

7 Jan 2010

Brand names appearing in italics throughout this publication are trademarks either owned by and/or licensed to GlaxoSmithKline group of companies, with the exception of Entereg, a trademark of Adolor Corporation in the USA, and Volibris, a trademark owned by Gilead, which are used in certain countries under licence by the Group.

Under the ‘safe harbor’ provisions of the US Private Securities Litigation Reform Act of 1995, the company cautions shareholders that any forward looking statements or projections made by the company, including those made in this Annual Summary, are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Factors that may affect the Group’s operations are described under ‘Risk factors’ in the ‘Business Review’ in the company’s Annual Report 2008.

The provision of the details on this page is not intended to be an invitation or inducement to engage in an investment activity. Advice on share dealing should be obtained from a stockbroker or independent financial adviser.