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32 nd Annual JP Morgan Healthcare Conference

32 nd Annual JP Morgan Healthcare Conference. Simon Dingemans, CFO January 14, 2014. 2013: A year of strategic delivery . Grow. a diversified global business. Multiple drivers of sales growth in place Significant pipeline filings & approvals Continued restructuring of operating costs

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32 nd Annual JP Morgan Healthcare Conference

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  1. 32nd Annual JP MorganHealthcare Conference Simon Dingemans, CFO January 14, 2014

  2. 2013: A year of strategic delivery Grow a diversifiedglobal business • Multiple drivers of sales growth in place • Significant pipeline filings & approvals • Continued restructuring of operating costs • Further financial efficiency gains • Strong cash generation and returns to shareholders Deliver more productsof value Simplify the operatingmodel 14 January 2014 32nd Annual JP Morgan Healthcare Conference

  3. Further strengthening of business mix Sales growth (ex disposals) 9 months YTD: +2%* (CER) • 67% • 9m YTD sales • +1%* • Sales growth 9m YTD • 13% • 9m YTD sales • -2%* • Sales growth for 9m YTD • +3%* • (ex Cervarix in Japan) • 20% • 9m YTD sales • +5%* • Sales growth 9m YTD Pharmaceuticals Vaccines Consumer *CER growth rates excluding disposals (Vesicare, OTC divestments, Australian Classic brands) 32nd Annual JP Morgan Healthcare Conference

  4. Continued rebalancing of geographies 38% of GSK’s overall business is outside the US & Europe Europe 29% 9m YTD sales +1%* Sales growth 9m YTD US Japan 33% 9m YTD sales +3%* Sales growth 9m YTD 7% 9m YTD sales -2%* Sales growth 9m YTD +5%* ex Cervarix in Japan EMAP 25% 9m YTD sales +1%* Sales growth 9m YTD Other regions represents the remaining 6% of turnover and principally represent Canada/ Puerto Rico; Australia and contract manufacturing *CER growth rates excluding disposals (Vesicare, OTC divestments, Australian Classic brands) 32nd Annual JP Morgan Healthcare Conference

  5. Significant R&D delivery of new products in 2013 Major additions to three core franchises: Respiratory, Oncology and HIV Date of 1st approval in a major market 29 May + Combination Indication9 Jan 2014 18 December 12 August 10 May 32nd Annual JP Morgan Healthcare Conference

  6. Continued progress in building a more sustainable pipeline Files currently with regulators Key Ph III data expected in 2014 • Arzerra (DLBCL, relapsed CLL, maintenance CLL) • darapladib (SOLID) • MAGE A3 (MAGRIT) • MEK + BRAF (v Zelboraf) • mepolizumab (steroid reduction, PhIII in severe asthma) • Tykerb (ALTTO) • albiglutide • Arzerra CLL first line • dolutegravir-Trii • ff mono • UMEC mono • Votrient Ovarian Cancer 32nd Annual JP Morgan Healthcare Conference

  7. GSK Financial Architecture ensuring focus on returns • Sales • growth • Operatingleverage • EPS • Focuson • returns • Focuson • returns • Returns to shareholders • Financialefficiency • Free Cash Flow • Cash flowgrowth 32nd Annual JP Morgan Healthcare Conference

  8. Continued delivery of restructuring benefits Manufacturing efficiencies Supply chain simplification and alignment New technologies Operational simplification Centralisation of support functions Improved capabilities: Finance, Procurement, IT Focus on R&D returns Common platforms and technologies Trial design & clinical capabilities • Sales • growth £2.7bn of annual savings delivered to date • Operatingleverage • Financialefficiency • Cash flowgrowth Releasing investment for launches & other growth opportunities Offsetting mix pressures and building leverage 32nd Annual JP Morgan Healthcare Conference

  9. Further financial efficiency gains • Sales • growth Operating profit • Funding rate reduced by 3% (vs 2010) • Target debt rating maintained: A1/P1 • Effective tax rate expected to be 24% or less for 2013 • Patent box and other benefits to come • Long-term share buyback programme continued • £1.5bn purchased in 2013 • £6.2bn purchased since 2011 restart • Operatingleverage • Financialefficiency • Cash flowgrowth EPS 32nd Annual JP Morgan Healthcare Conference 14 January 2014 9

  10. Continued focus on cash flow • 9m YTD Net cash from operations: £5.0bn +10%* • Sales • growth • Tighter control of receivables and payables • Supply chain initiatives driving inventory delivery • Working capital discipline • Operatingleverage • Investment behind launches and new technologies • Restructuring of supply chain and functional capability • Capital expenditure and restructuring • Financialefficiency • Over £2bn proceeds in 2013: • Lucozade & Ribena • Fraxiparine & Arixtra • Aspen shareholding • Active divestment programme • Cash flowgrowth *YTD growth ex legal 32nd Annual JP Morgan Healthcare Conference 14 January 2014 10

  11. Returns to shareholders • £5.2bn • Cash returned to shareholders 2013 • £23bn+ • Cash returned to shareholdersPast 5 years • £17bn • Dividends • £6bn • Buybacks • £3.7bn • Dividends • 9m YTD +6%* • £1.5bn • Buybacks *Interim dividends per share for first three quarters of 2013, up ~6%. 32nd Annual JP Morgan Healthcare Conference 14 January 2014 11

  12. 2013: A year of strategic delivery Grow a diversifiedglobal business • Multiple drivers of sales growth in place • Significant pipeline filings & approvals • Continued restructuring of operating costs • Further financial efficiency gains • Strong cash generation and returns to shareholders Deliver more productsof value Simplify the operatingmodel 32nd Annual JP Morgan Healthcare Conference 14 January 2014

  13. Thank you 13

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