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GSK Annual Report 2022 |
01 |
Key performance indicator attributable to continuing operations | Linked to executive remuneration. See pages 136 to 139 for more details |
02 |
GSK Annual Report 2022 |
Innovation sales (£bn) |
Innovative pipeline |
Phase III starts | ||||||
£12.7bn |
69 |
5 | ||||||
sales of products launched in the last five years including lifecycle innovation |
vaccines and specialty medicines based on the science of the immune system |
including for depemokimab in eosinophilic disease, and cobolimab for second-line non-small cell lung cancers | ||||||
>20 |
18 |
7 | ||||||
new approvals since 2017 |
in phase III/registration |
new collaborations and acquisitions including with Affinivax, Sierra Oncology and Spero Therapeutics |
Pipeline value and progress |
1st |
2nd |
13% | ||||||
in the Access to Medicine Index for 8th consecutive time |
in the pharmaceuticals industry for the S&P Global Corporate Sustainability Assessment, with a score of 86 (as at 17 February 2023) |
reduction in indirect scope 3 1 carbon emissions |
+ |
Read more on page 10 |
03 |
I was delighted by the seamless transition of Tony Wood into the Chief Scientific Officer role in August, replacing Hal Barron. Tony is an outstanding and highly respected scientist and has been a key architect in rebuilding our pipeline. 1 Compound annual growth rate |
04 |
GSK Annual Report 2022 |
05 |
Our strong momentum underpins our confidence in delivering the ambitious sales and profit outlooks we have set for 2026. At the same time, we continue to build a stronger portfolio and pipeline based on science of the immune system, to absorb the loss of revenues from future patent expirations, and to put us in a strong position to deliver growth through the decade and beyond. |
06 |
GSK Annual Report 2022 |
1 | Vaccine efficacy (VE) 94% (1 of 12,466 versus 17 of 12,494) |
07 |
69,400 |
>80 |
24,000 | ||
GSK people | countries worldwide | suppliers working directly | ||
with GSK | ||||
£5.5bn |
37 |
4 | ||
R&D investment in 2022 | manufacturing sites | global R&D centres | ||
up by 9% at AER, 4% at CER |
Vaccines |
Specialty Medicines |
General Medicines | ||
We deliver one and a half million doses of our vaccines every day; and around 40% of the world’s children receive a GSK vaccine each year. |
Our portfolio of specialty medicines prevent and treat diseases, from HIV and respiratory diseases, to immuno- inflammation diseases like lupus, to cancer. Many are first or best-in-class. |
Our portfolio of more than 150 products encompasses all of GSK’s primary care medicines, supplied in 112 countries worldwide. | ||
08 |
GSK Annual Report 2022 |
+ Our business model is supported by our ESG strategy, |
+ Our strategy is supported by a robust framework for | |
described on page 42 | monitoring and managing risk, described on pages 51 and 52 |
09 |
+ |
See The Code on gsk.com 1 |
1 | https://www.gsk.com/en-gb/company/governance/compliance/#the-code |
10 |
GSK Annual Report 2022 |
11 |
Rapid advances in science and technology are changing life sciences R&D. This is particularly evident in the expansion of artificial intelligence and machine learning (AI/ML), which has the potential to transform outcomes for patients by making R&D more precise and productive. Research has identified nearly 270 companies working in the AI-driven drug discovery industry.1 We’re investing in building our own AI/ML capabilities and forging partnerships to further strengthen our position. Other biopharma companies are also collaborating with AI organisations, with 46 partnerships struck in 2022, compared to 28 in 2016.2 The pivotal role of innovation in managing the COVID-19 pandemic |
underscored the potential of new technologies and approaches to improve patient outcomes. Growth areas include next-generation vaccines, where there has been a substantial increase in assets in development, driven by the advancement of mRNA and DNA vaccine technology. Greater use of new technologies and digital tools, as well as growth of decentralised trials, is accelerating a drive towards modernisation of clinical trial and regulatory processes. Governments and regulators are continuing to build on lessons learned from COVID-19 and expand international collaboration on complex trials and further develop policies and |
infrastructure for responsible access to public datasets. As AI/ML advances, different regulatory approaches on the use of AI in medicines are emerging. Collaboration is also needed to create common models and standards for AI regulation that support innovation and benefit patients. + Read about our focus on data and platform technologies on pages 18 and 19 |
Scientific and technological advances offer significant promise for patients. But geopolitical tensions are putting pressure on the systems needed to deliver this innovation. Rising nationalism and friction between countries, due to the conflict in Ukraine and tensions between the US and China, bring potential risk and disruption. In the face of these tensions, governments are taking more interventionist actions to protect their domestic economic competitiveness, strengthen national security, create domestic jobs and improve public health. There were notable examples of solidarity during the year. Constructive World Trade Organization discussions about reducing tariffs demonstrated |
that governments recognise the importance of minimising trade friction. But domestic interests remain the priority with governments encouraging companies to localise and shorten value chains 3 , prioritising strategic resilience over efficiency. Policies to restrict trade and secure access to essential items including medical goods have persisted. For example, in 2022, governments introduced over 150 harmful policy interventions affecting trade in pharmaceutical goods.4 In an environment defined by tensions, trade disruption and economic uncertainty, health and life sciences continue to be viewed as sectors of strategic importance for governments across advanced markets, including |
the US, Europe and the UK. In March 2022, the US enacted a new federal agency – Advanced Research Projects Agency for Health – to improve the government’s ability to speed biomedical and health research. Life sciences was earmarked as a key strength in the UK government’s new Growth Plan. 5 Given their potential to bolster economic productivity and protect lives, healthcare and life sciences are likely to be subject to more muscular industrial policy interventions such as additional support for R&D, as well as state scrutiny over supply chain resilience. | ||
1 AI in biopharma research: A time to focus and scale | McKinsey 10 October 2022 2 Deep Pharma Intelligence, Artificial Intelligence for Drug Discovery Landscape Overview Q3 2022 3 KPMG Singapore, six key trends impacting global supply chains in 2022 4 Global Trade Alert 5 HM Treasury, The Growth Plan 2022, September 2022 |
12 |
GSK Annual Report 2022 |
Lockdowns at the height of the pandemic weighed on economies worldwide and the outlook continued to weaken in 2022. Global growth was forecast to slow to 3.2% in 2022 6 amid surging inflation, heightened geopolitical uncertainty and tightening financial conditions. Energy prices soared across Europe due to increased demand and restricted supply, contributing to rising inflation. This has had immediate and challenging consequences for individuals and businesses.With energy prices climbing, governments have staged significant and costly interventions to protect households, seek alternative energy sources, and invest in renewable energy infrastructure. Government interventions on this scale risk growing fiscal deficits and put pressure on other areas of public spending, including healthcare. During the pandemic, healthcare spending increased as governments rolled out |
vaccination programmes. But spending is estimated to have fallen in real terms during 2022 as it failed to keep pace with inflation. 7 Medicines spending is expected to return to pre-pandemic growth rates by 2024, albeit with pricing and value under increasing scrutiny over the next few years due to economic pressures and geopolitical disruption.8 As governments meet economic headwinds, cost containment measures are on the rise, with healthcare budgets facing significant pressures in the UK, EU and other advanced markets. In August 2022, the US President signed into law the Inflation Reduction Act. This includes provisions to drive down US national debt through higher taxes, lowering energy costs, and lowering drug prices. Parts of the Act that focus on patients are welcome as they bring benefits to people who would otherwise face challenges accessing important vaccines. But there are |
concerns over negotiation provisions, allowing the federal health secretary to negotiate prices of certain expensive drugs each year for Medicare. This could potentially limit investment in innovation. As well as cost containment, we are also seeing more examples of innovative contracting to support prudent stewardship of healthcare spending. Companies and payers are continuing to explore innovative pricing models, which facilitate patient access and support payer confidence in the value of a medicine or vaccine at the time of launch. + Read more about pricing and access on page 43 |
The energy crisis has not only weakened economies, but also disrupted the green transition. Amid concerns over reliability, supply and affordability, policymakers face conflicting priorities. While energy transition is necessary to mitigate climate change, immediate energy needs are driving renewed investment in traditional fossil fuel energy sources. European countries announced plans to revert to higher coal usage to produce electricity, while the US has taken steps such as reopening oil and gas leasing on public lands. |
Investor sentiment, particularly in the US, has seen similar shifts as the ESG agenda becomes increasingly polarised and politicised. During the year, Florida and Texas implemented measures banning their pension funds from investing through any asset managers that have policies on excluding fossil fuels or taking ESG factors into account. Against this fractured backdrop, corporate net zero efforts remain in the spotlight with stakeholder expectations on credibility and transparency on net zero continuing to rise. But voluntary commitments and coalitions are being tested with, for example, the UN-backed Race to Zero dropping its explicit bar on support for new coal projects. |
Despite the disruption seen during 2022, getting ahead of climate change remains a long-term investor and societal expectation, and a government priority. This was reinforced by the $369 billion clean energy investment in the US Inflation Reduction Act. Any setback to the energy transition is likely to be time-limited, so companies must continue to demonstrate leadership on the issue and remain committed to cutting + Read more about climate and nature on pages 45 and 46 | ||
6 IMF, World Economic Outlook, October 2022 7 Economist Intelligence Unit, Healthcare outlook 2023 (eiu.com) 8 IQVIA, Global Use of Medicines 2023 |
13 |
+ |
See pages 43 to 45 for more on pricing and access, and global health and health security |
9 | Financial Times, COVID-19 vaccine tracker: the global race to vaccinate, as at 23 December 2022 |
14 |
GSK Annual Report 2022 |
69 |
> 20 |
2/3rds | ||
vaccines and medicines in the pipeline |
new approvals since 2017 |
of our pipeline comes from infectious diseases and HIV |
– Potential best-in-class – Shingrix 10-year data presented at ID Week 2022– Continued progress in development of long-acting HIV treatments; positive phase II data on N6LS broadly-neutralising antibody presented at HIV Glasgow – Pivotal phase III trials for gepotidacin antibiotic for uUTIs stopped early for efficacy – Positive phase IIb data for bepirovirsen, our investigational treatment for chronic hepatitis B, and started phase III study in early 2023 |
– Expansion of depemokimab phase III programme with trials for long-acting IL-5 inhibitor in three additional eosinophil-driven diseases– Business development including: acquisition of Affinivax giving access to disruptive MAPS technology and phase II next-generation vaccine for pneumococcal disease; acquisition of Sierra Oncology adding momelotinib for myelofibrosis patients with anaemia (regulatory submission EU, US); and exclusive licence with Spero Therapeutics giving access to tebipenem HBr, a late-stage antibiotic for cUTIs |
– | infectious diseases, see page 20 |
– | HIV, see page 23 |
– | immunology/respiratory, see page 24 |
– | oncology, see page 25 |
– | flawless execution of our late-stage pipeline and acceleration of our organically derived pipeline |
– | doubling down on technology to deliver further innovation faster |
– | finding new ways to help patients through lifecycle innovation |
– | targeted business development to push towards new discoveries |
16 |
GSK Annual Report 2022 |
– | data technology, which helps us to understand the patient and human biology, choose targets and design clinical trials. We have access to large, rich datasets thanks to our data-focused collaborations, including our recent collaboration with Tempus (see page 19) as well as established partnerships, for example with 23andMe, the UK Biobank, and the Laboratory of Genomic Research with the University of California (see page 18) |
– | platform technology, for the efficient design and development of new vaccines and medicines. We have access to a broad set of platform technologies, including an unrivalled suite within vaccines like mRNA, MAPS and adjuvant science, and a growing investment in oligonucleotides (see page 19) |
– | approval in the US for Boostrix |
– | FDA approval for a new, more convenient presentation of our Rotarix |
– | approval for Priorix |
– | approval of a two-dose regimen for Cervarix |
– | approval in China for Benlysta Benlysta |
– | continue to develop a new monoclonal antibody, depemokimab, under development for its high affinity and long-acting suppression of IL-5 function |
17 |
– | select novel targets that are genetically validated and so more likely to become approved medicines and vaccines |
– | design clinical trials to include the patients most likely to benefit from our potential medicines and vaccines |
– | recruit these patients faster, and accelerate the pace of our clinical trials |
18 |
GSK Annual Report 2022 |
– | PathAI, a global leader in AI-powered pathology, aimed at accelerating R&D in oncology and NASH. We’ll combine our predictive and data-driven approach to drug discovery and trials with PathAI’s models to build algorithms that uncover new insights. We’ll integrate these into trials to help us predict which patients will be impacted most |
– | Tempus, which enables access to their library of de-identified patient data. Tempus’ dataset draws from its work with over 40% of oncologists in the US at academic medical centres and community hospitals. We will work with Tempus to improve clinical trial design, speed up enrolment and identify drug targets, with an initial focus on oncology |
– | MAPS (multiple antigen presenting system), a novel and highly efficient vaccine technology platform that potentially enables broader coverage, generating higher antibody responses. MAPS has mainly been directed at preventing pneumococcal disease and has also shown promise in addressing other infectious disease pathogens, including those that cause hospital-acquired infections |
– | mRNA, which was validated by the launch of the COVID-19 vaccines in 2020 and could potentially be applied across a number of diseases. We’re progressing the development of the mRNA technology in-house, in parallel with our CureVac collaboration. We’re currently evaluating a second generation mRNA backbone, which we developed with CureVac, in a phase I trial featuring modified mRNA vaccine candidates targeting COVID-19 and flu. Based on the promising preliminary analysis of these studies, evaluating safety, reactogenicity and immunogenicity, we are preparing to move these candidates into late-stage clinical testing |
– | RNAi and oligonucleotides including: ARO-HSD, a phase II programme for NASH, in-licensed from Arrowhead in 2021, consisting of an RNA interference (RNAi) molecule against a genetically validated target; and bepirovirsen, an anti-sense oligonucleotide designed to recognise HBV DNA, in phase III, which we in-licensed from Ionis in 2019. We also announced a collaboration with Wave Life Sciences, which allows us to advance up to eight preclinical programmes using Wave’s PRISM oligonucelotide platform and includes the in-licensing of a novel RNA-editing oligonucleotide to treat liver and lung disease caused by alpha-1-antitrypsin |
– | monoclonal antibodies (mAbs) such as Xevudy COVID-19, co-developed with Vir Biotechnology, as well as other research programmes |
– | new ways to understand the biology and pharmacology of genetically validated targets and how best to intervene in their disease processes. Our Chemical Biology group has developed several such methods, including chemogenomic libraries, encoded libraries, and reactive fragments, in part in collaboration with the Francis Crick Institute. These novel technologies help find critical starting points for drug discovery projects |
– | natural products derived from the biosphere, such as the collaboration we started with LifeMine Therapeutics in 2022, which gives us access to its platform for proprietary evolutionary-derived genomic drug discovery |
– | bi-specific antibodies for multiple auto-immune diseases that are advancing through preclinical phases |
– | digitisation to optimise each phase of vaccine development and production. Working with Siemens and Atos, two of the world’s leading digital transformation and technology companies, we’ve developed a ‘digital twin’, a complete and real-time simulation of the vaccine manufacturing process. |
19 |
1 | VE 94.1% (1 of 12,466 versus 17 of 12,494); 94.6% (1 of 4,937 versus 18 of 4,861); VE 82.6% (7 of 12,466 versus 40 of 12,494) |
2 | VE 81.6% (52 cases in 32673.8 f/u years versus 283 cases* in 32673.8 f/u years); *cases for the placebo group are estimated from the ZOE-50/70 placebo groups to assess vaccine efficacy during ZOE-LTFU study; f/u: follow up; (95% confidence interval [CI]: 75.2–86.6) |
20 |
GSK Annual Report 2022 |
21 |
22 |
GSK Annual Report 2022 |
23 |
24 |
GSK Annual Report 2022 |
25 |
1 |
At the request of the FDA, in late 2022, we restricted the second-line ovarian cancer maintenance indication for Zejula |
26 |
GSK Annual Report 2022 |
27 |
Phase III/Registration |
Bexsero |
SKYCovione (SK Bioscience) 1 COVID-194 |
3536819 (conjugated, recombinant protein) MenABCWY 1st gen |
3844766 1 (recombinant protein)3 RSV older adults |
gepotidacin 1 (BTI inhibitor) uUTI and GC |
bepirovirsen 1 (HBV ASO) HBV |
tebipenem pivoxil 1 (antibacterial carbapenem) cUTI10 |
Xevudy 1 (sotrovimab/VIR-7831 monoclonal antibody) COVID-19 |
Blenrep 1 (anti-BCMA ADC) multiple myeloma |
Jemperli 1 (anti-PD-1) 1L endometrial cancer2 |
Zejula 1 (PARP inhibitor) ovarian, lung and breast cancer |
momelotinib 1 (JAK1, JAK2 and ACVR1 inhibitor) myelofibrosis |
cobolimab 1 (anti-TIM-3) NSCLC |
latozinemab 1 (AL001, anti-sortilin) frontotemporal dementia2,9 |
depemokimab 1 (LA anti- IL5) asthma2 |
Nucala |
daprodustat (HIF-PHI) anaemia of chronic kidney disease 12 |
linerixibat (IBAT inhibitor) cholestatic pruritus in primary biliary cholangitis |
Phase II |
3437949 1 (recombinant protein)3 malaria fractional dose |
4406371 (live, attenuated) MMRV new strain |
3536852 1 (GMMA) Shigella |
3528869 1 (viral vector with recombinant protein)3 therapeutic HBV6 |
4023393 (conjugated, recombinant protein) MenABCWY 2nd gen 6 |
4178116 (live, attenuated) varicella new strain |
5101955 1 (MAPS) pneumococcal 24-valent – paediatric |
5101956 1 (MAPS) pneumococcal 24-valent – adults |
4106647 1 (protein-adiuvant)3 HPV6 |
3036656 1 (leucyl t-RNA inhibitor) tuberculosis |
sanfetrinem cilexetil 1 (serine beta lactamase inhibitor) tuberculosis |
BVL-GSK098 1 (ethionamide booster) tuberculosis |
VIR-2482 1 (neutralising monoclonal antibody)5 influenza |
3640254 (maturation inhibitor) HIV 13 |
3810109 1 (broadly neutralising antibody) HIV |
4428859 1 (anti-TIGIT) cancer |
Benlysta 10 |
4532990 1 (HSD17B13 siRNA) non-alcoholic steatohepatitis10 |
Phase I |
2904545 1 (recombinant protein)3 C. difficile |
4429016 1 (bioconjugated, recombinant protein)3 K. pneumoniae |
3993129 (recombinant subunit) 3 CMV6 |
4382276 1 (mRNA) flu |
4396687 1 (mRNA) COVID-19 |
4077164 1 (bivalent GMMA) iNTS (typhimurium + enteritidis)2 |
3943104 1 (recombinant protein)3 Therapeutic HSV |
4348413 (GMMA) gonorrhoea 6 |
3536867 1 (bivalent conjugate) Salmonella (typhoid + paratyphoid A) |
2556286 1 (Mtb inhibitor) tuberculosis |
3186899 1 (CRK-12 inhibitor) visceral leishmaniasis7 |
3494245 1 (proteasome inhibitor) visceral leishmaniasis |
3772701 1 (P falciparum |
3882347 1 (FimH antagonist) uUTI |
3923868 (PI4k b |
4182137 1 (VIR-7832 monoclonal antibody) COVID-196 |
3965193 (PAPD5/7 inhibitor) HBV |
5251738 1 (TLR8 agonist) HBV |
3739937 (maturation inhibitor) HIV |
cabotegravir (400 mg/ml formulation) HIV |
4004280 (capsid protein inhibitor) HIV |
4011499 (capsid protein inhibitor) HIV |
4524184 1 (integrase inhibitor) HIV |
3745417 (STING agonist) cancer |
4074386 1 (anti-LAG3) cancer |
6097608 1 (anti-CD96) cancer |
4381562 1 (anti-PVRIG) cancer |
XMT-2056 1,11 (STING agonist ADC) cancer (wholly owned by |
Mersana Therapeutics) |
4527226 1 (AL101, anti-sortilin) neurodegenerative diseases |
3858279 1 (anti-CCL17) osteoarthritis pain |
1070806 (anti-IL18) atopic dermatitis |
3888130 1 (anti-IL7) multiple sclerosis |
4172239 1 (DNMT1 inhibitor) – sickle cell disease8 |
1 | In-licence or other alliance relationship with third party |
2 | Additional indications or candidates also under investigation |
3 | Adjuvanted |
4 | GSK contributing pandemic adjuvant |
5 | GSK has exclusive option to co-develop post phase II |
6 | In phase I/II study |
7 | Transition activities underway to enable further progression by partner |
8 | Imminent study start |
9 | Phase III trial in patients with progranulin gene mutation |
10 | Phase II or III study start expected in 2023 |
11 | GSK has an exclusive global license option to co-develop and commercialise the candidate |
12 | FDA approved in February 2023 |
13 | Will not progress to phase III |
28 |
GSK Annual Report 2022 Commercial operations Performance: Vaccines Our broad vaccines portfolio targets infectious diseases at every stage of life, helping to protect people from meningitis, shingles, flu, polio and many more. Herpes zoster virus (shingles) 29 |
Turnover |
Key products | |||||||
£7.9bn +17% AER, +11% CER |
Product |
Disease |
Total revenue |
Key information | ||||
Shingrix |
Herpes zoster (shingles) |
£2,958m +72% AER; +60% CER |
Record sales year. Now launched in 26 markets | |||||
Bexsero |
Meningitis group B |
£753m +16% AER; +12% CER |
Approved in France for National Immunisation Programme in 2022. Now available in 50 markets | |||||
Fluarix, FluLaval |
Seasonal influenza |
£714m +5% AER; -4% CER |
Joint first to market with Sanofi in US enabling vaccinations to begin in July 2022 | |||||
Boostrix |
Diphtheria, tetanus, acellular pertussis booster |
£594m +14% AER; +7% CER |
US approval for maternal immunisation indication in 2022 | |||||
Infanrix, Pediarix |
Diphtheria, tetanus, pertussis, polio, hepatitis B, haemophilus influenza type B |
£594m +9% AER; +3% CER |
Pediarix | |||||
Engerix, Twinrix, Havrix |
Hepatitis |
£571m +24% AER; +16% CER |
Travel and routine immunisation for hepatitis recovering as expected in 2022 | |||||
Rotarix |
Rotavirus |
£527m -3% AER;-3% CER |
Rotarix | |||||
Menveo |
Meningitis group A, C, W and Y |
£345m +27% AER; +18% CER |
Menveo | |||||
Synflorix |
Invasive disease, pneumonia, acute otitis media |
£305m -15% AER;-15% CER |
Affinivax acquisition for next-generation PCV of 24 valents and greater | |||||
Priorix, Priorix Tetra, Varilrix |
Measles, mumps, rubella and chickenpox |
£188m -28% AER;-29% CER |
US approval for Priorix | |||||
Cervarix |
Human papilloma virus |
£117m -15% AER;-20% CER |
China approval for a two-dose schedule in 2022 | |||||
30 |
GSK Annual Report 2022 |
31 |
32 |
GSK Annual Report 2022 Commercial operations Performance: Specialty Medicines We continue to be global leaders in HIV medicines, focus on pioneering treatments for immune-mediated conditions and respiratory diseases, and have an emerging portfolio of cancer medicines. HIV virus 33 |
Turnover |
Key marketed products | |||||||
£11.3bn +37% AER, +29% CER |
Product |
Disease |
Total revenue |
Key information | ||||
Xevudy |
COVID-19 treatment |
£2,309m >100% AER; >100% CER |
Monoclonal antibody treatment. Delivered more than two million doses to over 30 countries since approval | |||||
Triumeq |
HIV treatment |
£1,799m -4% AER; -11% CER |
Dolutegravir-based fixed dose combination tablets. Marketed in 67 countries | |||||
Nucala |
Respiratory eosinophil-driven diseases |
£1,423m +25% AER; +18% CER |
The only treatment to be indicated in the US and Europe for use across four eosinophil-driven diseases (see page 24) | |||||
Tivicay |
HIV treatment |
£1,381m flat% AER; -7% CER |
Dolutegravir tablet for use in combination with other antiretroviral agents. Marketed in 71 countries | |||||
Dovato |
HIV treatment |
£1,375m +75% AER; +65% CER |
Dolutegravir based two-drug regimen. Now launched in over 50 markets | |||||
Benlysta |
Lupus and lupus nephritis |
£1,146m +31% AER; +20% CER |
Only biologic approved to treat both SLE and LN, in the US, Europe and elsewhere | |||||
Juluca |
HIV treatment |
£636m +23% AER; +14% CER |
Dolutegravir based two-drug regimen. Marketed in 30 countries | |||||
Zejula |
Ovarian cancer |
£463m +17% AER; +12% CER |
PARP inhibitor commercially available in 1L maintenance in 29 markets and in 2L maintenance in 29 markets | |||||
Cabenuva (Vocabria + Rekambys in Europe and Japan) |
HIV treatment |
£340m >100% AER; >100% CER |
First and only complete long-acting injectable regimen (cabotegravir, rilpivirine). Launched in over 20 countries | |||||
Blenrep |
Blood cancer – multiple myeloma |
£118m +33% AER; +25% CER |
An antibody-drug conjugate commercially available in 19 countries for patients with relapsed or refractory multiple myeloma | |||||
Rukobia |
HIV treatment |
£82m +82% AER; +64% CER |
Extended-release tablets for people living with multi-drug resistant HIV-1 for use in combination with other antiretrovirals. Approved in the US, Canada and Europe | |||||
Apretude |
HIV prevention |
£41m |
First and only long-acting injectable (cabotegravir) for HIV prevention. Launched in the US in 2022 | |||||
Jemperli |
Endometrial cancer |
£21m >100% AER; >100% CER |
PD-1-blocking | |||||
34 |
GSK Annual Report 2022 |
– | Launched in 2019, our dolutegravir-based two-drug regimen, Dovato |
– | Our long-acting therapies are also central to our growth and are delivering results as they launch across our markets. |
– | In 2021 we launched the only long-acting treatment regimen, Cabenuva Vocabria Rekambys Non-inferior to daily anti-viral therapy and dosed once every two months, Cabenuva |
– | In January 2022 we launched Apretude two-monthly dosing. The launch was supported by a direct-to-consumer |
– | By 2026 we estimate our long-acting regimens Cabenuva Apretude |
– | Benlysta |
– | Nucala Nucala at-home use for adults. The evidence behind Nucala two-year data from REALITI-A, the real-world study with Nucala IL-5 inhibition in everyday practice can help to achieve treatment goals. Our pioneering work in IL-5 inhibition continues with the research into depemokimab, a monoclonal antibody specifically engineered with an increased affinity for IL-5 and a longer duration of action to allow longer periods of time between injections (see page 24) |
35 |
36 |
GSK Annual Report 2022 |
+ |
For information on product governance and data on recalls, regulatory inspections and audits, see pages 49 and 50 |
+ |
For details about the General Medicines supply chain, see page 40 |
37 |
GSK Annual Report 2022 |
Turnover |
Key marketed products | |||||||
£10.1bn +5% AER, +1% CER |
Product |
Disease |
Total revenue |
Key information | ||||
Trelegy Ellipta |
COPD, asthma |
£1,729m +42% AER; +32% CER |
Most prescribed single inhaler triple therapy worldwide, reaching an estimated 5.1 million patients since launch | |||||
Seretide/Advair |
Asthma, COPD |
£1,159m -15% AER; -17% CER |
One of the market-leading ICS/LABA 2 treatments worldwide | |||||
Relvar/Breo Ellipta |
Asthma, COPD |
£1,145m +2% AER; -2% CER |
One of the leading ICS/LABA treatments worldwide powered by its 24-hour, sustained efficacy and the convenience of the Ellipta | |||||
Ventolin |
Asthma, COPD |
£771m +7% AER; +2% CER |
Global market-leading SABA 3 reliever | |||||
Augmentin |
Common bacterial infections |
£576m +35% AER; +38% CER |
Global leader in oral antibiotics available in over 95 countries | |||||
Lamictal |
Epilepsy, bipolar disorder |
£511m +7% AER; +1% CER |
No. 1 brand by sales value in the global lamotrigine market | |||||
Anoro Ellipta |
COPD |
£483m -4% AER;-9% CER |
Global market leader in the LAMA/LABA 1 class approved in over 70 countries | |||||
Avodart & Duodart |
Benign prostatic hyperplasia (BPH) |
£330m -1% AER;-3% CER |
Market leaders by sales value in the global dutasteride and dutasteride+tamsulosin FDC 4 market respectively, approved in over 85 countries | |||||
Avamys/ Veramyst |
Allergic rhinitis |
£321m +8% AER; +6% CER |
Global leader in the inhaled corticosteroids prescription class | |||||
Dermovate, Betnovate, Cutivate, Eumovate |
Inflammatory skin conditions |
£200m 0%AER, +1% CER |
Global leader in topical corticosteroids across 60 markets globally | |||||
1 LABA/LAMA: long-acting beta agonists/long-acting muscarinic antagonists | ||||||||
2 ICS/LABA: inhaled corticosteroid/long-acting beta agonists | ||||||||
3 SABA: short-acting beta agonist |
||||||||
4 FDC: fixed dose combination |
||||||||
Key information source IQVIA |
39 |
+ |
For more about our global supply chain, which also covers Specialty Medicines, see pages 36 and 37 |
40 |
GSK Annual Report 2022 |
– | Access to healthcare |
– | Global health and health security |
– | Environment |
– | Diversity, equity and inclusion |
– | Ethical standards |
– | Product governance |
– | Are well defined to ensure we have a standardised approach |
– | Can be used consistently in future years |
– | Are ambitious and achievable |
– | Can be externally assured |
– | Are meaningful for stakeholders |
2022 ESG Performance Rating |
Our 2022 ESG Performance Rating is on track , based on 83% of all performance metrics being met or exceeded. |
Assessment of performance against our annual targets has been reviewed, and the overall ESG Performance Rating score has been externally assured for 2022. |
External benchmarking |
||
Detailed below is how we perform in key ESG ratings that we are frequently asked about by investors: – Access to Medicines: – S&P Corporate Sustainability Assessment: |
– FTSE4Good: – CDP: A- in Climate change, B in Water security, A- in Forests (palm oil) and B in Forests (timber)– Sustainalytics: – MSCI: – Moody’s ESG solutions: – ISS Corporate Rating: |
+ |
For full details of progress against our six focus areas, our latest materiality assessment and our ESG Performance Rating and 23 metrics, please see our ESG Performance Report |
42 |
GSK Annual Report 2022 |
– | Develop and externally publish pricing and access principles |
– | Progress towards our 2030 goal of reaching 1.3 billion people in lower income countries with our products |
1 | Industry averages are sourced from Drug Channels |
2 | The 73 million figure includes people reached with Synflorix Rotarix Cervarix Mosquirix |
43 |
+ |
For full details of our progress against our six focus areas, please see our ESG Performance Report |
– | Progress three Global Health pipeline assets to address priority WHO diseases |
44 |
GSK Annual Report 2022 |
+ |
For full details of our progress against our six focus areas, please see our ESG Performance Report |
– | Climate |
– | Operational emissions reduction (scope 1 and 2 market-based emissions) |
– | Industrialisation of green Ventolin non-clinical data available to support regulatory submissions |
– | Percentage of carbon offset volume in project pipeline |
– | Water |
– | Average of the percentage of GSK sites and suppliers compliant with wastewater active pharmaceutical ingredient limits and the percentage of suppliers that are compliant with the AMR Industry Alliance Common Antibiotic Manufacturing Framework and discharge limits |
– | Operational waste and material reduction at our sites |
– | Biodiversity |
– | Number of high-risk materials implementing sustainable sourcing roadmaps |
– | 80% reduction in carbon emissions and investment in nature-based solutions for the remaining 20% of our footprint by 2030 (all scopes) 2 |
– | 100% renewable electricity by 2025 (scope 2) |
– | Net zero emissions across our full value chain by 2045 (all scopes) 3 |
1 | Targets are measured against a 2020 baseline |
2 | Previously stated as net zero by 2030 |
3 | This is a new longer-term target, aligned to the SBTi Net-Zero Standard definition of net zero |
45 |
– | Achieve good water stewardship at 100% of our sites by 2025 2 |
– | Reduce overall water use in our operations by 20% by 2030 |
– | Be water neutral in our own operations and at key suppliers in water-stressed regions by 2030 2 |
– | Zero impact active pharmaceutical ingredient (API) levels for all sites and key suppliers by 2030 3 |
– | Zero operational waste, including eliminating single-use plastics, by 20304 |
1 | Targets are measured against a 2020 baseline |
2 | See our Environment Basis of reporting for definition |
3 | Zero impact against predicted no effect concentrations |
4 | Where regulatory obligations allow, and excluding plastics which are critical to product discovery and development and health & safety |
– | 25% environmental impact reduction for our products and packaging by 2030 |
– | 10% waste reduction from our supply chain by 2030 |
– | Positive impact on biodiversity at all sites by 2030 |
– | 100% agricultural, forestry and marine-derived materials sustainably sourced and deforestation free by 2030 |
+ |
For full details of our progress against our six focus areas, please see our ESG Performance Report |
46 |
GSK Annual Report 2022 |
– | 75% of phase III trials initiated in 2022 will have proactive plans in place designed to enrol appropriately diverse trial participants, consistent with disease epidemiology |
– | Performance towards 2025 aspirations through fair and equitable opportunities: |
– | have women hold at least 45% of VP-and-above |
– | have at least 30% ethnically diverse leaders in our roles at VP and above in the US, and increase the percentage of Black or African American, and Hispanic or Latinx VP-and-above |
– | have at least 18% ethnically diverse leaders in our roles at VP and above in the UK, and increase the percentage of Black VP-and-above |
– | Improve year-on-year US-based diverse-owned suppliers |
+ |
For full details of our progress against our six focus areas, please see our ESG Performance Report |
47 |
– | 100% of employees and complementary workers complete GSK’s 2022 mandatory training |
– | Percentage of employees who believe they ‘can and do Speak Up if things don’t feel right’ is above the general industry benchmark 1 |
– | Number of employees leaving GSK’s employment for misconduct in the last 12 months versus the three-year rolling average |
– | 80% of direct high-risk suppliers achieve GSK’s minimum EcoVadis score or have an improvement plan in place |
1 | The general industry benchmark is 65% according to 2022 research by KornFerry |
48 |
GSK Annual Report 2022 |
+ |
For full details of our progress against our six focus areas, please see our ESG Performance Report |
– | Average number of critical and major findings by FDA/ MHRA/EMA regulators 3 |
– | Percentage of inspections from all regulators with no critical findings or official action indicated |
– | Number of FDA warning letters |
– | Total number of Class I/II external product recalls across all markets |
– | Register and disclose all human subject research of GSK products. Specifically, register protocol summaries for studies initiated in 2022; and disclose results summaries for studies with results due in 2022 |
1 | Our EHS priority suppliers are API suppliers who are, or will be, medically-, R&D- or revenue-critical to GSK, or are high spend suppliers |
2 | The 600 supplier employees trained includes data from our previous Consumer Healthcare business |
3 | We consider any observations from the FDA as major |
49 |
+ |
For full details of our progress against our six focus areas, please see our ESG Performance Report |
1 | Critical finding from one inspection by the Chinese regulator of a third-party manufacturing facility used by GSK |
2 | Class I recalls are triggered by a reasonable probability that the use of or exposure to a violative product will cause serious adverse health consequences or death. Class II recalls address the use of or exposure to a violative product which may cause temporary or medically reversible adverse health consequences, or where the probability of serious adverse health consequences is remote. Class III recalls relate to the use of or exposure to a violative product which is not likely to cause adverse health consequences |
50 |
GSK Annual Report 2022 |
51 |
+ |
Viability statement, see page 64 |
+ |
ARC report, see page 124 |
+ |
Internal control framework, see page 125 |
+ |
Legal proceedings, see page 265 |
+ |
Environment, see page 45 |
+ |
Climate-related financial disclosures report, see page 55 |
52 |
GSK Annual Report 2022 |
Risk | Trend versus prior year |
Assessment and mitigation activities | ||
Patient safety |
External |
The external risk environment remains stable. The regulatory environment remains challenging, with recent examples of evolving regulatory requirements related to safety reporting for clinical trials. Also, there is a risk that external parties, including regulatory agencies and technology companies, may reach conclusions and communicate information about the safety of our products based on real-world evidence that is not available to us. This could inhibit our ability to make timely decisions and take appropriate action in relation to the safety of our products, or to confirm or refute conclusions asserted by external parties. | ||
GSK |
Our risk exposure remains stable. We continue to balance resources between change programmes while maintaining routine activities. In 2022, we’ve allocated resources to optimise pharmacovigilance operations, advance innovative solutions for safety case management, and simplify key safety processes. Change initiatives have the short-term potential to distract focus from our key business priorities. However, such changes will reduce our overall risk exposure by increasing workload capacity and organisational capability. | |||
Product quality |
External |
The external risk environment is stabilising and remains high following COVID-19, with regulators resuming multiple on-site inspections to check that product quality expectations are met. There continues to be a focus on data governance and data integrity requirements, and on evaluation of products for the presence of nitrosamines. The regulatory environment is evolving with respect to continued use of titanium dioxide in medicines, with the EMA due to make a decision on potential discontinuation in 2024. | ||
GSK |
Our risk exposure has stabilised as we return to pre-pandemic levels of health authority inspections. We continue with inspection readiness programmes to ensure full preparedness. We’ve continued to invest in technology and digital platforms to strengthen our controls around good data management practices. We’ve completed all nitrosamine product assessments in line with regulatory expectations. | |||
Financial controls and reporting |
External |
The external risk environment remains challenging due to political uncertainty, proposed increases in the obligations of directors and auditors, increasing threats of cyber attacks and fraud, and increasing ESG disclosure requirements. | ||
GSK |
Our risk exposure remains stable due to our ongoing focus on the resilience of personnel and the testing of our internal control framework. We implement optimal risk mitigation through transformational programmes, technology, centralised processes, and risk and control assessments, and maintain effective tax and treasury strategies. We continually strengthen our control frameworks and collaborate with external bodies on setting standards. | |||
Anti-bribery and corruption (ABAC) |
External |
The external risk environment remains stable. The enforcement of anti-corruption laws and regulations remains a priority in many countries, in particular the US and the UK, with a continued focus on investigating the use of third parties to bribe foreign public officials. As a result, rigorous anti-bribery and corruption controls are expected. Disruption to global supply chains and the commercial pressures caused by higher-than-usual inflation rates may increase the risks of bribery and corruption in certain contexts in the coming years. | ||
GSK |
Our risk exposure remains stable as we continuously improve our ABAC programme to make sure that our controls match evolving and emerging risks. We’ve enhanced our mandatory ABAC training for all employees, and we provide role- and risk-tailored ABAC training on an ongoing basis. We also impose stringent ABAC training requirements on certain third parties who provide services for or on our behalf. | |||
Commercial practices |
External |
The external risk environment has stabilised. Macroeconomic factors such as energy price increases, inflationary pressure, and ongoing effects of the COVID-19 pandemic contribute to a challenging environment for all stakeholders. Competitive pressure remains intense across therapy areas and market segments. Governments remain focused on initiatives to drive down medicine and vaccine costs for consumers. | ||
GSK |
Our risk exposure remains stable. We have a mature and robust control environment, which has evolved to match the competitive enhancements to our commercial practices, including higher volumes of engagement with healthcare professionals and strengthened sales force incentive schemes. |
53 |
Risk | Trend versus prior year |
Assessment and mitigation activities | ||
Scientific and patient engagement |
External |
The external risk environment remains stable. It continues to be characterised by complex, dynamic disease areas and treatments with increased patient-centric focus during all phases of the product lifecycle, increasing diversity of engagement platforms and more virtual engagements. | ||
GSK |
Our risk exposure remains stable. We continue to mitigate risk by modernising and adjusting our engagement practices and internal controls to the rapidly evolving environment. We have internal networks to foster collaboration and best practice sharing, as well as the identification of emerging risks associated with scientific and patient engagement activities. | |||
Data ethics and privacy |
External |
The external risk environment continues to increase as the global landscape of data protection, privacy and cyber laws develops. Given that the current pace of technology-focused innovation is expected to continue, companies need to be mindful of relevant potential legislation and regulations. The increasing trend for data sovereignty, initially affecting tech companies, could affect healthcare companies in their ability to drive medical innovation and to effectively operate internationally. | ||
GSK |
Our risk exposure is increasing in the context of an unstable privacy regulatory environment and our multinational footprint, as we re-align with our digital transformation and focus on data-driven science. Laws in our key markets such as the US, EU, UK, China and India continue to evolve, including those relating to international data transfer mechanisms. | |||
Research practices |
External |
The external risk environment remains stable. Research remains critical to the development of safe and effective products. Advances in technology, use of data, societal expectations and ethical considerations and new entrants to the sector continue to influence the environment. Global regulations and quality standards continue to evolve, and are particularly impactful when expectations change or there are country-specific requirements. | ||
GSK |
Our risk exposure remains stable, as laws and regulations are continually evolving. We continue to perform robust risk scanning and assessments that inform the evolution of our control framework in response to regulatory changes, ensuring clear accountabilities for actions. | |||
Environment, health and safety (EHS) |
External |
The external risk environment remains stable. Manufacturing sites are operating at full staffing levels. Work location arrangements have been made to maintain the safety and wellbeing of employees affected by the Ukraine conflict. | ||
GSK |
Our risk exposure remains stable. We’ve continued to focus on safety leadership training, embedding our Life Saving Rules, and adhering to our EHS standards. We’re introducing our Safety Leadership Experience across Global Supply Chain, and R&D operations. This programme trains leaders to take EHS accountability and make sure all our people understand the importance of adhering to our EHS standards. | |||
Information security |
External |
The external risk environment continues to rise as digital footprints increase and threats from hackers become more sophisticated. Growing geopolitical conflicts have significantly increased cyber risk to large corporations. Governments are tightening regulatory frameworks with regards to data and information, and we are seeing a rise in enforcement of them. | ||
GSK |
Our risk exposure continues to increase as we operate in an increasingly digital healthcare ecosystem and continue to expand our own digital footprint. In response, our cyber security maturity programme continues to improve our controls and governance to identify, protect, detect, respond to and recover from cyber incidents. | |||
Supply continuity |
External |
The external risk environment is increasing due to unpredictable external forces that put pressure on the resilience of our supply chains. These include geopolitical tensions and growing nationalistic approaches (including US-China decoupling). | ||
GSK |
Our risk exposure remains stable. Across our Medicines and Vaccines supply chains, we continue to focus on strategic materials planning parameters, adapting to changes in the external environment, including inventory strategies, safety stocks and hedging. We’re making a concerted effort to stabilise and accelerate newly acquired assets and we’re focusing on making sure we recruit the right people to support our future portfolio. |
54 |
GSK Annual Report 2022 |
– | discussed climate-related issues on three separate occasions with management, including: progress in delivering against our climate ambitions; implications of the geopolitical landscape; key milestones and decisions required to achieve net zero targets |
– | reviewed mid-year performance for key environmental metrics, including climate-related metrics, as part of reviewing GSK’s ESG Performance Rating |
– | approved GSK’s TCFD statement and public environmental reporting and disclosures |
– | received monthly performance dashboards covering key performance metrics and escalations of any potential concerns or issues |
– | held quarterly performance reviews across all areas of programme delivery and focused reviews of aspects of the programme such as the implementation of the sustainable sourcing strategy, and recommendations for refreshing GSK’s Science Based Target commitments. The Council reviews include decisions on interventions or support required to maintain progress towards 2030 targets |
– | reviewed insights on ESG trends and regulations |
– | approved the proposed Sustainability Data Strategy |
55 |
– | the programme to reduce the climate impact of metered dose inhalers which contribute to approximately 50% of GSK’s total GHG emissions by up to 90%, if the clinical trials are successful |
– | advocacy and engagement with regulators and policymakers |
– | industrialisation strategy and progress |
– | the Sustainability Programme Steering Team co-ordinates the sustainability programme and associated workstreams and has oversight for monitoring performance and progress of the enablers required to deliver the sustainability programme |
– | business unit sustainability councils meet quarterly to review business unit performance and delivery against the company sustainability ambition |
– | the Capital Allocations Board (CAB) which includes the CFO and Group Financial Controller reviews climate-related capital expenditure as part of its annual planning and capital allocation process |
– | the Finance Sustainability Network includes leaders from across Finance, Sustainability and Procurement and focuses on key financial enablers to deliver the sustainability programme |
– | maximising energy efficiency in our sites |
– | transitioning to 100% renewable electricity by 2025 |
– | increasing the use of electric vehicles by our sales fleet |
– | the Activate programme to help Active Pharmaceutical Ingredients (API) suppliers accelerate decarbonisation initiatives |
– | the Energize programme to encourage the use of renewable energy throughout the pharmaceutical sector’s supply chain |
– | the Manufacture 2030 initiative to encourage suppliers to measure, manage and reduce their emissions |
56 |
GSK Annual Report 2022 |
– | changes to regulations governing the supply of high global warming potential (GWP) substances by the EU, UK and US governments could restrict GSK’s ability to manufacture metered dose inhalers |
– | future regulatory policy responses to address climate change could lead to the imposition of carbon taxes by countries where GSK manufactures and sources goods from third parties |
– | increasing levels of water stress that could lead to interruptions to supply of water to GSK and third-party supply sites |
– | increasing frequency and impact of extreme weather events that could cause disruption to GSK and third-party supplier sites |
1 | IEA Net Zero emissions scenario, https://www.iea.org/reports/global-energy- and-climate-model/net-zero-emissions-by-2050-scenario-nze last accessed 17 November 2022 |
2 | IEA World Energy Outlook 2021, Chapter 2, p94, download report from https://www.iea.org/reports/world-energy-outlook-2021/overview, last accessed 17 November 2022 |
3 | IEA Announced Pledges, https://www.iea.org/reports/global-energy-and- climate-model/announced-pledges-scenario-aps last accessed 17 November 2022 |
57 |
Physical risk/ description |
GSK response |
Scenario | Potential financial impact/ timeframe |
Metrics | Targets | |||||||
The risk from increasing levels of water stress leading to interruptions to supply of water to GSK sites and third-party supply sites.GSK and its third-party suppliers use freshwater as the main source of water to manufacture medicines and vaccines. If water availability was restricted at a factory, then production operations would be interrupted. |
We have identified three water basins in water-stressed areas in Algeria, India and Pakistan where we have manufacturing sites, and where we aim to be water neutral. At our manufacturing facility in Nashik, India we have built plants for rainwater harvesting. The climate scenario analysis has identified a number of sites and supplier sites located in water basins that could become water stressed by 2040 which have been added to a watch list. We will monitor changes to the risk levels and update our site water risk assessments appropriately. |
Current trajectory |
Medium (£100m- £250)m/ Long term (> 10 years) |
Sites that have achieved water stewardship Total supplied water |
Achieve good water stewardship at 100% of our sites by 2025 Reduce overall water use in our operations by 20% by 2030 | |||||||
Breach of planetary boundaries |
Low (< £100m)/ long term (> 10 years) | |||||||||||
Increasing frequency of extreme weather events causing disruption to GSK and third-party supplier sites. Extreme weather events from any one of precipitation (rainfall), flood from precipitation, tidal flood, extreme wind, wildfire, extreme heat or extreme cold can result in short-term interruptions to manufacturing at GSK or supplier sites. |
The climate scenario modelling indicated that of the seven physical perils, flood from rainfall presents the highest likelihood of an acute interruption. However, the risk of flooding from rainfall and from the other extreme weather events is expected to remain very low. We have performed risk assessments for our manufacturing and other operations and have business continuity plans in place which are reviewed annually to respond to the impacts of extreme weather events including adopting appropriate mitigation plans. GSK has a well established loss prevention and risk engineering programme to identify a range of risks that could impact our sites and where flood risks exist, we have taken action to mitigate the risk. |
Low carbon scenario |
Low (< £100m)/ Long term (> 10 years) |
Business continuity plans are reviewed annually |
Where climate- related risks to business continuity are identified, we have taken action to mitigate the risk | |||||||
Current trajectory scenario |
||||||||||||
Breach of planetary boundaries scenario |
||||||||||||
Regulations governing the use of high global warming potential (GWP) substances are being updated in the EU and UK and were updated recently in the US. This could lead to increasing costs and restrict the ability to manufacture our metered dose inhaler (MDI) products that use a high GWP propellant (HFA134a). |
We are investing in an R&D programme to reduce greenhouse gas emissions from metered dose inhalers used to treat asthma and COPD and have made good progress towards reformulating an alternative gas that could potentially reduce the climate impact by up to 90%, if the clinical trials are successful. We already have a portfolio of Dry Powder Inhaler products that do not use propellants that are not impacted by this risk. |
Current trajectory scenario |
High (> £250m)/ medium (3-10 years) |
On/off track against delivery of key milestones on the R&D programme plan |
80% and 90% reduction in carbon emissions (all scopes) by 2030 and 2045, respectively | |||||||
58 |
GSK Annual Report 2022 |
Transitional risk/ description |
GSK response |
Scenario | Potential financial impact/ timeframe |
Metrics | Targets | |||||||
Future regulatory policy responses to address climate change could lead to the imposition of carbon taxes by countries where GSK manufactures and source goods from third parties. |
GSK is managing this risk by reducing Scope 1 and 2 emissions through the following: – GSK’s energy efficiency programme – Transitioning to 100% renewable electricity by 2025 – Investigating options for renewable heat technology – Transitioning sales fleet to electric vehicles by 2030 – Using shadow carbon pricing on capital investments of US$ 100 per tonne of GHG emissions GSK is managing this risk by reducing Scope 3 emissions through the following: – R&D programmes to reduce greenhouse gas emissions from metered dose inhalers – The new supply chain programme requiring our suppliers to take action on carbon, set targets aligned with 1.5°C and switch to renewable power and heat – Collaborating with sector peers in the Energize and Activate programmes and the Manufacture 2030 initiative – Joining the Sustainable Markets Initiative Health Systems Task Force to reduce healthcare supply chain emissions |
Net zero scenario |
Medium (£100-250m) in both medium (3-10 years) and long term (> 10 years) |
Scope 1 & 2 carbon emissions Scope 3 carbon emissions |
80% and 90% reduction in carbon emissions (all scopes) by 2030 and 2045, respectively | |||||||
Low carbon scenario Current trajectory scenario |
Medium (£100-250m) in the medium (3-10 year) term falling to low (< £100m) in the long term (> 10 years) Low (< £100)/ in the medium (3-10 years) and long term (> 10 years) | |||||||||||
Opportunities | GSK response |
Scenario | Potential profit impact/ timeframe |
Metrics | Targets | |||||||
At COP26 in November 2021, more than 50 countries around the world committed to provide low carbon healthcare systems. This could lead to increasing demand for low carbon medicines and vaccines. |
We are reducing our own Scope 1 & 2 carbon emissions which in turn reduces the Scope 3 footprint of our customers and suppliers; for example, at our site in Irvine in Scotland, a closed loop heat system has helped to drive reductions in operating costs, and onsite renewables and biogas will provide 85% of its energy. We have an Eco-design programme to reduce the impacts of all our products and packaging. We are investing in an R&D programme to reduce greenhouse gas emissions from metered dose inhalers used to treat asthma and COPD and have made good progress towards reformulating an alternative gas that could potentially reduce the climate impact by up to 90% if the clinical trials are successful. We have a portfolio of dry powder inhaler products that have low carbon footprints. |
Net zero scenario |
Low < £100m/ Long (> 10 years) |
Scope 1 & 2 and 3 carbon emissions Total waste and materials |
80% and 90% reduction in carbon emissions (all scopes) by 2030 and 2045, respectively Zero operational waste | |||||||
Low carbon scenario |
||||||||||||
Current trajectory scenario |
||||||||||||
There have been several reports exploring the impact of climate change and health showing that climate change affects water- and vector-borne diseases. This could lead to an increasing demand for new medicines and vaccines. |
In September 2022, GSK and Microsoft announced an innovative collaboration with the Centre for Health and Disease Studies (CHDS) Nepal. The pilot project, which will leverage Microsoft’s Premonition systems and GSK’s expertise in health and disease, will investigate how AI and robotics can support local community response to vector-borne diseases and climate change. In July 2022, GSK’s annual Palio conference explored the role of vaccines in finding solutions for global healthcare to protect people and the planet. |
Current trajectory scenario |
Long (> 10 years) |
Not applicable |
Not applicable | |||||||
59 |
60 |
GSK Annual Report 2022 |
a. Disclose the metrics used by the organisation to assess climate risks and opportunities in line with its strategy and risk management process |
GSK has considered the key metrics following the guidance of Tables A1.1 and A1.2 as well as the metrics consistent with cross-industry, climate-related metrics as described in TCFD. Based on that, our strategic metrics are: – Scope 1 & 2 emissions (market-based and location-based approach), described in the table below – Scope 3 emissions, described in the table below – % renewably sourced electricity, described in the table below – Total supplied water, described in the table below – Total waste and materials, described in the table below – ESG composite metric, as part of our senior leaders‘ remuneration policy see page 148 – Sites that have achieved water stewardship, described in the table below Our ESG Performance Report includes additional metrics used to support the strategic metrics listed above. | |
b. Disclose Scope 1, 2 and if applicable Scope 3 GHG emissions and related risks |
In Energy and carbon emissions, see table below – Scope 1 emissions from energy – Scope 1 from other sources – Scope 2 emissions (market-based) – Scope 2 emissions (location-based) – Scope 3 emissions metrics – Scope 1 & 2 emissions from intensity metrics Prioritised physical and transition risks are included in the Strategy Section on page 56. | |
c. Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets |
Our targets (measured against a 2020 baseline where applicable) are: – 80% reduction in carbon emissions and investment in nature-based solutions for the remaining 20% of our footprint by 2030 (all scopes) – 100% renewable electricity by 2025 (Scope 2) – Net zero emissions across our full value chain by 2045 (all scopes) – Achieve good water stewardship at 100% of our sites by 2025 – Reduce overall water use in our operations by 20% in 2030 – Zero operational waste by 2030. – Be water neutral in our own operations and at key suppliers in water-stressed regions by 2030 The performance against our targets can be found on pages 45 and 46. 1 |
1 | See Basis of Reporting 2022 in the ESG resources section of GSK.com |
(https://www.gsk.com/en-gb/responsibility/esg-resources/) for detailed |
methodologies for measuring and reporting all GSK environmental KPIs |
61 |
Carbon emissions ‘000 tonnes CO 2 e |
2022 | 2021 | 2020 | |||||||||
Scope 1 emissions (from energy) |
320 |
333 | 355 | |||||||||
Scope 1 emissions (other 3 ) |
306 |
300 | 358 | |||||||||
Scope 2 emissions (market-based) |
88 |
131 | 169 | |||||||||
Scope 2 emissions (location-based) |
265 |
285 | 309 | |||||||||
Scope 3 emissions 4 |
– |
8,624 | 9,949 | |||||||||
UK Scope 1 & 2 emissions |
111 |
126 | 138 |
Other metrics | 2022 | 2021 | 2020 | |||||||||
Scope 1 and 2 emissions from energy/sales revenue (tonnes CO 2 e/£m) |
13.9 |
18.8 | 21.5 | |||||||||
Scope 1 and 2 emissions from energy/FTE (tonnes CO 2 e/FTE) |
5.9 |
6.5 | 7.2 | |||||||||
Total energy used (GWh) |
2,759 |
2,871 | 3,085 | |||||||||
UK energy used (GWh) |
735 |
807 | 917 | |||||||||
% renewably sourced electricity |
73% |
63% | 46% | |||||||||
Total supplied water million m 3 |
7.5 |
7.9 | 9.7 | |||||||||
Total waste and materials ‘000 metric tonne |
57.2 |
63.1 | 63.0 | |||||||||
% sites that have achieved water stewardship |
100% |
100% | 89% |
1 | All data reported excludes our previous Consumer Healthcare business unless otherwise specified |
2 | Carbon emissions are calculated according to the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (revised edition). GSK uses market-based Scope 2 emissions for reporting purposes and reports Scope 3 emissions across all 15 categories in our ESG Performance Report. We ask external assurance providers, Deloitte, to provide limited assurance to ISAE 3000 for energy, Scope 1, 2 and selected Scope 3 carbon emission data, water and wastewater data. Methodologies for reporting and measurements are provided in the Basis of Reporting 2022 in the ESG resources section of gsk.com (https://www.gsk.com/en-gb/responsibility/esg-resources/) |
3 | ‘Other’ refers to emissions from sales force vehicles, propellant emissions released during manufacture of inhalers (the majority of propellant emissions, released during patient use, are included in Scope 3 carbon emissions), on-site waste, or wastewater treatment and refrigerant gas losses |
4 | We collect and publish Scope 3 data across 15 categories. The most recent Scope 3 data available is for 2021 as the process of compiling the 2022 data is not yet complete, except for 2022 Scope 3 emissions from patient use of inhalers which are disclosed in the ESG Performance Report. We will publish this data once it becomes available and it will be included in the 2023 ESG Performance Report |
62 |
GSK Annual Report 2022 |
Description of the business model |
||||
Business model | 08 | |||
Social matters |
||||
Access | 43 | |||
Global health and health security | 44 | |||
Employees |
||||
Our culture and people | 10 | |||
Employee engagement | 11 | |||
Diversity, equity and inclusion | 47 | |||
Wellbeing and development | 11 | |||
Gender pay gap | 47 | |||
Ethical standards | 48 | |||
Board diversity | 122 |
Human rights |
||||
Human rights | 48 | |||
Working with third parties | 48 | |||
Data and engagement | 49 | |||
Anti-bribery and corruption |
||||
Ethical standards | 48 | |||
Reporting and investigating concerns | 48 | |||
Environmental matters |
||||
Environment | 45 | |||
Climate-related financial disclosures | 55 | |||
Nature-related financial disclosure | 62 |
Policy, due diligence and outcomes |
||||
Risk management | 51 | |||
Principal risks and uncertainties | 285 | |||
Viability statement | 64 | |||
Audit & Risk Committee report | 124 | |||
Non-financial key performance indicators |
||||
2022 performance and key performance indicators | 03 | |||
Our policies |
||||
All of our public policies, codes and standards are available on gsk.com |
Male |
Female |
Total |
||||||||||
Board |
8 | 3 | 11 |
|||||||||
Management* |
8,318 | 8,201 | 16,519 |
|||||||||
All employees |
36,782 | 32,618 | 69,400 |
* | Senior managers as defined in the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 |
63 |
64 |
In this section |
||||||||
66 |
||||||||
68 |
||||||||
69 |
||||||||
81 |
||||||||
86 |
||||||||
87 |
||||||||
92 |
||||||||
93 |
||||||||
94 |
GSK Annual Report 2022 |
Full year 2022 £m |
Growth AER % |
Growth CER % |
Full year 2021 (1) £m |
Full year 2020 (1) £m |
||||||||||||||||
Turnover |
29,324 |
19 | 13 | 24,696 | 24,354 | |||||||||||||||
Total continuing operating profit (1) |
6,433 |
48 | 31 | 4,357 | 5,979 | |||||||||||||||
Total EPS (1) |
371.4p |
>100 | >100 | 109.6p | 144.4p | |||||||||||||||
Total continuing EPS (1) |
110.8p |
34 | 18 | 82.9p | 122.4p | |||||||||||||||
Total discontinued EPS (1) |
260.6p |
>100 | >100 | 26.7p | 22.0p | |||||||||||||||
Adjusted operating profit (1) |
8,151 |
26 | 14 | 6,493 | 6,656 | |||||||||||||||
Adjusted EPS (1) |
139.7p |
27 | 15 | 110.3p | 114.4p | |||||||||||||||
Cash generated from operations attributable to continuing operations (1) |
7,944 |
10 | 7,249 | 7,674 | ||||||||||||||||
Free cash flow |
3,348 |
1 | 3,301 |
3,683 |
(1) | The amounts presented above for continuing operations and Adjusted results excludes the Consumer Healthcare business discontinued operation. The amounts presented for discontinued EPS are for the demerger of the Consumer Healthcare business. The presentation of continuing and discontinued operations under IFRS 5 are set out on page 192. The 2021 and 2020 comparative results have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see page 238) and the impact of the Share Consolidation implemented on 18 July 2022 (see page 233). |
66 |
GSK Annual Report 2022 |
67 |
2022 |
2021 (1) |
Growth | ||||||||||||||||||||||
£m |
% of turnover |
£m | % of turnover |
£% | CER% | |||||||||||||||||||
Turnover |
29,324 |
100 |
24,696 | 100 | 19 | 13 | ||||||||||||||||||
Cost of sales |
(9,554 |
) |
(32.6 |
) |
(8,163 | ) | (33.1 | ) | 17 | 16 | ||||||||||||||
Gross profit |
19,770 |
67.4 |
16,533 | 66.9 | 20 | 12 | ||||||||||||||||||
Selling, general and administration |
(8,372 |
) |
(28.6 |
) |
(7,070 | ) | (28.6 | ) | 18 | 13 | ||||||||||||||
Research and development |
(5,488 |
) |
(18.7 |
) |
(5,019 | ) | (20.3 | ) | 9 | 4 | ||||||||||||||
Royalty income |
758 |
2.6 |
417 | 1.7 | 82 | 81 | ||||||||||||||||||
Other operating (expenses)/income |
(235 |
) |
(504 | ) | ||||||||||||||||||||
Operating profit |
6,433 |
21.9 |
4,357 | 17.6 | 48 | 31 | ||||||||||||||||||
Net finance costs |
(803 |
) |
(755 | ) | ||||||||||||||||||||
Loss on disposal of interest in associates |
– |
(36 | ) | |||||||||||||||||||||
Share of after-tax (losses)/profits of associates and joint ventures |
(2 |
) |
33 | |||||||||||||||||||||
Profit before taxation |
5,628 |
3,599 | 56 | 37 | ||||||||||||||||||||
Taxation |
(707 |
) |
(83 | ) | ||||||||||||||||||||
Profit after taxation from continuing operations for the year |
4,921 |
3,516 | 40 | 23 | ||||||||||||||||||||
Profit after taxation from discontinued operations and other gains from the demerger |
3,049 |
1,580 | ||||||||||||||||||||||
Remeasurement of discontinued operations distributed to shareholders on demerger |
7,651 |
– | ||||||||||||||||||||||
Profit after taxation from discontinued operations |
10,700 |
1,580 | >100 | >100 | ||||||||||||||||||||
Total profit after taxation for the year |
15,621 |
5,096 | >100 | >100 | ||||||||||||||||||||
Profit attributable to non-controlling interests from continuing operations |
460 |
200 | ||||||||||||||||||||||
Profit attributable to shareholders from continuing operations |
4,461 |
3,316 | ||||||||||||||||||||||
Profit attributable to non-controlling interests from discontinued operations |
205 |
511 | ||||||||||||||||||||||
Profit attributable to shareholders from discontinued operations |
10,495 |
1,069 | ||||||||||||||||||||||
15,621 |
5,096 | >100 | >100 | |||||||||||||||||||||
Total profit attributable to non-controlling interests |
665 |
711 | ||||||||||||||||||||||
Total profit attributable to shareholders |
14,956 |
4,385 | ||||||||||||||||||||||
15,621 |
5,096 | >100 | >100 | |||||||||||||||||||||
Earnings per share from continuing operations (p) |
110.8p |
82.9p | 34 | 18 | ||||||||||||||||||||
Earnings per share from discontinued operations (p) |
260.6p |
26.7p | >100 | >100 | ||||||||||||||||||||
Total earnings per share (p) |
371.4p |
109.6p | >100 | >100 | ||||||||||||||||||||
Earnings per ADS from continuing operations (US$) |
2.75 |
2.29 | ||||||||||||||||||||||
Earnings per ADS from discontinued operations (US$) |
6.46 |
0.73 | ||||||||||||||||||||||
Total earnings per ADS (US$) |
9.21 |
3.02 |
2022 |
2021 (1) |
Growth | ||||||||||||||||||||||
£m |
% of turnover |
£m | % of turnover |
£% | CER% | |||||||||||||||||||
Turnover |
29,324 |
100 |
24,696 | 100 | 19 | 13 | ||||||||||||||||||
Cost of sales |
(8,741 |
) |
(29.8 |
) |
(7,346 | ) | (29.7 | ) | 19 | 18 | ||||||||||||||
Selling, general and administration |
(8,128 |
) |
(27.7 |
) |
(6,749 | ) | (27.3 | ) | 20 | 15 | ||||||||||||||
Research and development |
(5,062 |
) |
(17.3 |
) |
(4,525 | ) | (18.3 | ) | 12 | 6 | ||||||||||||||
Royalty income |
758 |
2.6 |
417 | 1.6 | 82 | 81 | ||||||||||||||||||
Adjusted operating profit |
8,151 |
27.8 |
6,493 | 26.3 | 26 | 14 | ||||||||||||||||||
Adjusted profit attributable to shareholders |
5,625 |
4,415 | 27 | 15 | ||||||||||||||||||||
Adjusted profit attributable to non-controlling interest |
595 |
441 | ||||||||||||||||||||||
Adjusted profit after tax |
6,220 |
4,856 | 28 | 16 | ||||||||||||||||||||
Adjusted earnings per share (p) |
139.7p |
110.3p | 27 | 15 |
(1) | The 2021 comparative results have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see page 238) and the impact of the Share Consolidation implemented on 18 July 2022 (see page 233). |
68 |
GSK Annual Report 2022 |
– | amortisation of intangible assets (excluding computer software and capitalised development costs) |
– | impairment of intangible assets (excluding computer software) and goodwill |
– | Major restructuring costs, which include impairments of tangible assets and computer software, (under specific Board approved programmes that are structural, of a significant scale and where the costs of individual or related projects exceed £25 million) including integration costs following material acquisitions |
– | transaction-related accounting or other adjustments related to significant acquisitions |
– | proceeds and costs of disposals of associates, products and businesses; significant settlement income; significant legal charges (net of insurance recoveries) and expenses on the settlement of litigation and government investigations; other operating income other than royalty income, and other items |
69 |
2022 £m |
2021 (2) £m |
2020 (2) £m |
||||||||||
Total operating profit from continuing operations |
6,433 |
4,357 | 5,979 | |||||||||
Intangible amortisation |
739 |
761 | 724 | |||||||||
Intangible impairment |
296 |
347 | 200 | |||||||||
Major restructuring |
321 |
424 | 1,178 | |||||||||
Transaction-related items |
1,750 |
1,143 | 1,237 | |||||||||
Divestments, significant legal and other items |
(1,388 |
) |
(539 | ) | (2,662 | ) | ||||||
Adjusted results |
8,151 |
6,493 | 6,656 |
2022 £m |
2021 (2) £m |
2020 (2) £m |
||||||||||
Contingent consideration on former Shionogi-ViiV Healthcare JV (including Shionogi preferential dividends) |
1,431 |
1,026 | 1,114 | |||||||||
ViiV Healthcare put options and Pfizer preferential dividends |
85 |
48 | (52 | ) | ||||||||
Contingent consideration on former Novartis Vaccines business |
193 |
27 | 172 | |||||||||
Contingent consideration on acquisition of Affinivax |
17 |
– | – | |||||||||
Other adjustments |
24 |
42 | 3 | |||||||||
Transaction-related items |
1,750 |
1,143 | 1,237 |
(1) | Three year financial data is presented reflecting the restated results following the demerger of Consumer Healthcare business. The financial results of 2019 and 2018 are not restated and are not presented. |
(2) | The 2021 and 2020 comparative results have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see page 238). |
70 |
GSK Annual Report 2022 |
2022 £m |
2021 £m |
|||||||
Contingent consideration at beginning of the year |
5,559 |
5,359 | ||||||
Remeasurement through income statement and other movements |
1,431 |
1,026 | ||||||
Cash payments: operating cash flows |
(1,031 |
) |
(721 | ) | ||||
Cash payments: investing activities |
(69 |
) |
(105 | ) | ||||
Contingent consideration at end of the year |
5,890 |
5,559 |
2022 £m |
2021 £m |
|||||||
Pfizer put option |
1,093 |
1,008 |
71 |
72 |
GSK Annual Report 2022 |
• | Specialty Medicines products which includes GSK’s marketed products for HIV, oncology, immuno-inflammation, respiratory and other specialty medicines (including Nucala Xevudy |
• | Vaccines products, including sales of GSK’s AS03 adjuvant as part of the pandemic solutions; |
• | General Medicines products, which include products previously reported as Established Pharmaceuticals and sales of Trelegy Ellipta Anoro Ellipta |
2022 £m |
2021 (revised) £m |
Growth £% |
Growth CER% |
|||||||||||||
HIV |
5,749 |
4,777 | 20 | 12 | ||||||||||||
Oncology |
602 |
489 | 23 | 17 | ||||||||||||
Immuno-inflammation, respiratory and other | 2,609 |
2,027 | 29 | 20 | ||||||||||||
8,960 |
7,293 | 23 | 15 | |||||||||||||
Pandemic |
2,309 |
958 | >100 | >100 | ||||||||||||
Specialty medicines |
11,269 |
8,251 | 37 | 29 |
73 |
2022 £m |
2021 £m |
Growth £% |
Growth CER% |
|||||||||||||
Meningitis |
1,116 |
961 | 16 | 11 | ||||||||||||
Influenza |
714 |
679 | 5 | (4 | ) | |||||||||||
Shingles |
2,958 |
1,721 | 72 | 60 | ||||||||||||
Established Vaccines |
3,085 |
2,970 | 4 | – | ||||||||||||
7,873 |
6,331 | 24 | 17 | |||||||||||||
Pandemic Vaccines |
64 |
447 | (86 | ) | (86 | ) | ||||||||||
Vaccines |
7,937 |
6,778 | 17 | 11 |
74 |
GSK Annual Report 2022 |
2022 £m |
2021 (revised) £m |
Growth £% |
Growth CER% |
|||||||||||||
Respiratory |
6,548 |
6,048 | 8 | 3 | ||||||||||||
Other general medicines |
3,570 |
3,619 | (1 | ) | (2 | ) | ||||||||||
General medicines |
10,118 |
9,667 | 5 | 1 |
75 |
76 |
GSK Annual Report 2022 |
2022 £m |
2021 (1) £m |
Growth £% |
Growth CER% |
|||||||||||||
Total cost of sales |
(9,554 |
) |
(8,163 | ) | 17 | 16 | ||||||||||
Adjusted cost of sales |
(8,741 |
) |
(7,346 | ) | 19 | 18 |
(1) | The 2021 comparative results have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see page 238). |
2022 £m |
2021 (1) £m |
Growth £% |
Growth CER% |
|||||||||||||
Total selling, general and administration |
(8,372 |
) |
(7,070 | ) | 18 | 13 | ||||||||||
Adjusted selling, general and administration |
(8,128 |
) |
(6,749 | ) | 20 | 15 |
(1) | The 2021 comparative results have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see page 238). |
2022 £m |
2021 (1) £m |
Growth £% |
Growth CER% |
|||||||||||||
Total research and development |
(5,488 |
) |
(5,019 | ) | 9 | 4 | ||||||||||
Adjusted research and development |
(5,062 |
) |
(4,525 | ) | 12 | 6 |
(1) | The 2021 comparative results have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see page 238). |
77 |
78 |
GSK Annual Report 2022 |
Finance income |
2022 £m |
2021 (1) £m |
||||||
Interest and other income |
62 |
13 |
||||||
Fair value movements |
14 |
1 |
||||||
76 |
14 |
|||||||
Finance expense |
||||||||
Interest expense |
(789 |
) |
(735 |
) | ||||
Unwinding of discounts on provisions |
(7 |
) |
(2 |
) | ||||
Remeasurements and fair value movements |
(20 |
) |
(2 |
) | ||||
Finance expense on lease liabilities |
(30 |
) |
(27 |
) | ||||
Other finance expense |
(33 |
) |
(3 |
) | ||||
(879 |
) |
(769 |
) |
(1) | The 2021 comparative results have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see page 238). |
2022 £m |
2021 (1) £m |
|||||||
UK current year charge |
200 |
119 |
||||||
Rest of world current year charge |
1,351 |
593 |
||||||
Charge/(credit) in respect of prior periods |
(60 |
) |
219 |
|||||
Total current taxation |
1,491 |
931 |
||||||
Total deferred taxation |
(784 |
) |
(848 |
) | ||||
Taxation on total profits |
707 |
83 |
(1) | The 2021 comparative results have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see page 238). |
79 |
80 |
GSK Annual Report 2022 |
Adjusted results reconciliation 31 December 2022 |
Total results £m |
Profit from discon- tinued operations £m |
Intangible asset amortisation £m |
Intangible asset impairment £m |
Major restructuring £m |
Transaction- related £m |
Divestments, significant legal and other items £m |
Adjusted results £m |
||||||||||||||||||||||||
Turnover |
29,324 | 29,324 | ||||||||||||||||||||||||||||||
Cost of sales |
(9,554 | ) | 648 | 102 | 45 | 18 | (8,741 | ) | ||||||||||||||||||||||||
Gross profit |
19,770 | 648 | 102 | 45 | 18 | 20,583 | ||||||||||||||||||||||||||
Selling, general and administration |
(8,372 | ) | 180 | 13 | 51 | (8,128 | ) | |||||||||||||||||||||||||
Research and development |
(5,488 | ) | 91 | 296 | 39 | (5,062 | ) | |||||||||||||||||||||||||
Royalty income |
758 | 758 | ||||||||||||||||||||||||||||||
Other operating (expense)/income |
(235 | ) | 1692 | (1,457 | ) | – | ||||||||||||||||||||||||||
Operating profit |
6,433 | 739 | 296 | 321 | 1,750 | (1,388 | ) | 8,151 | ||||||||||||||||||||||||
Net finance costs |
(803 | ) | 2 | 10 | (791 | ) | ||||||||||||||||||||||||||
Share of after-tax losses of associates and joint ventures |
(2 | ) | (2 | ) | ||||||||||||||||||||||||||||
Profit before taxation |
5,628 | 739 | 296 | 323 | 1,750 | (1,378 | ) | 7,358 | ||||||||||||||||||||||||
Taxation |
(707 | ) | (150 | ) | (64 | ) | (87 | ) | (242 | ) | 112 | (1,138 | ) | |||||||||||||||||||
Tax rate |
12.6% |
15.5% |
||||||||||||||||||||||||||||||
Profit after taxation from continuing operations |
4,921 | 589 | 232 | 236 | 1,508 | (1,266 | ) | 6,220 | ||||||||||||||||||||||||
Profit after taxation from discontinued operations and other gains/(losses) from the demerger |
3,049 | (3,049 | ) | |||||||||||||||||||||||||||||
Remeasurement of discontinued operations distributed to shareholders on demerger |
7,651 | (7,651 | ) | |||||||||||||||||||||||||||||
Profit after taxation from discontinued operations |
10,700 | (10,700 | ) | |||||||||||||||||||||||||||||
Total profit after taxation for the year |
15,621 | (10,700 | ) | 589 | 232 | 236 | 1,508 | (1,266 | ) | 6,220 | ||||||||||||||||||||||
Profit attributable to non-controlling interests from continuing operations |
460 | 135 | 595 | |||||||||||||||||||||||||||||
Profit attributable to shareholders from continuing operations |
4,461 | 589 | 232 | 236 | 1,373 | (1,266 | ) | 5,625 | ||||||||||||||||||||||||
Profit attributable to non-controlling interest from discontinued operations |
205 | (205 | ) | |||||||||||||||||||||||||||||
Profit attributable to shareholders from discontinued operations |
10,495 | (10,495 | ) | |||||||||||||||||||||||||||||
15,621 | (10,700 | ) | 589 | 232 | 236 | 1,508 | (1,266 | ) | 6,220 | |||||||||||||||||||||||
Total profit attributable to non-controlling interests |
665 | (205 | ) | 135 | 595 | |||||||||||||||||||||||||||
Total profit attributable to shareholders |
14,956 | (10,495 | ) | 589 | 232 | 236 | 1,373 | (1,266 | ) | 5,625 | ||||||||||||||||||||||
15,621 |
(10,700 |
) |
589 |
232 |
236 |
1,508 |
(1,266 |
) |
6,220 |
|||||||||||||||||||||||
Earnings per share from continuing operations |
110.8p | 14.6p | 5.8p | 5.9p | 34.1p | (31.5)p | 139.7p | |||||||||||||||||||||||||
Earnings per share from discontinued operations |
260.6p | (260.6)p | ||||||||||||||||||||||||||||||
Total earnings per share |
371.4p | (260.6)p | 14.6p | 5.8p | 5.9p | 34.1p | (31.5)p | 139.7p | ||||||||||||||||||||||||
Weighted average number of shares (millions) |
4,026 | 4,026 |
81 |
Adjusted results reconciliation 31 December 2021 (1) |
Total results £m |
Profit from discon- tinued operations £m |
Intangible asset amortisation £m |
Intangible asset impairment £m |
Major restructuring £m |
Transaction- related £m |
Divestments, significant legal and other items £m |
Adjusted results £m |
||||||||||||||||||||||||
Turnover |
24,696 | 24,696 | ||||||||||||||||||||||||||||||
Cost of sales |
(8,163 | ) | 660 | 102 | 28 | 27 | (7,346 | ) | ||||||||||||||||||||||||
Gross profit |
16,533 | 660 | 102 | 28 | 27 | 17,350 | ||||||||||||||||||||||||||
Selling, general and administration |
(7,070 | ) | 277 | 9 | 35 | (6,749 | ) | |||||||||||||||||||||||||
Research and development |
(5,019 | ) | 101 | 347 | 45 | 1 | (4,525 | ) | ||||||||||||||||||||||||
Royalty income |
417 | 417 | ||||||||||||||||||||||||||||||
Other operating (expense)/income |
(504 | ) | 1,106 | (602 | ) | |||||||||||||||||||||||||||
Operating profit |
4,357 | 761 | 347 | 424 | 1,143 | (539 | ) | 6,493 | ||||||||||||||||||||||||
Net finance costs |
(755 | ) | 2 | 1 | (752 | ) | ||||||||||||||||||||||||||
Loss on disposal of interest in associates |
(36 | ) | 36 | – | ||||||||||||||||||||||||||||
Share of after-tax profits of associates and joint ventures |
33 | 33 | ||||||||||||||||||||||||||||||
Profit before taxation |
3,599 | 761 | 347 | 426 | 1,143 | (502 | ) | 5,774 | ||||||||||||||||||||||||
Taxation |
(83 | ) | (153 | ) | (81 | ) | (79 | ) | (179 | ) | (343 | ) | (918 | ) | ||||||||||||||||||
Tax rate |
2.3% |
15.9% |
||||||||||||||||||||||||||||||
Profit after taxation from continuing operations |
3,516 | 608 | 266 | 347 | 964 | (845 | ) | 4,856 | ||||||||||||||||||||||||
Profit after taxation from discontinued operations and other gains/(losses) from the demerger |
1,580 | (1,580 | ) | |||||||||||||||||||||||||||||
Profit after taxation from discontinued operations |
1,580 | (1,580 | ) | |||||||||||||||||||||||||||||
Total profit after taxation for the year |
5,096 | (1,580 | ) | 608 | 266 | 347 | 964 | (845 | ) | 4,856 | ||||||||||||||||||||||
Profit attributable to non-controlling interests from continuing operations |
200 | 241 | 441 | |||||||||||||||||||||||||||||
Profit attributable to shareholders from continuing operations |
3,316 | 608 | 266 | 347 | 723 | (845 | ) | 4,415 | ||||||||||||||||||||||||
Profit attributable to non-controlling interest from discontinued operations |
511 | (511 | ) | |||||||||||||||||||||||||||||
Profit attributable to shareholders from discontinued operations |
1,069 | (1,069 | ) | |||||||||||||||||||||||||||||
5,096 | (1,580 | ) | 608 | 266 | 347 | 964 | (845 | ) | 4,856 | |||||||||||||||||||||||
Total profit attributable to non-controlling interests |
711 | (511 | ) | 241 | 441 | |||||||||||||||||||||||||||
Total profit attributable to shareholders |
4,385 | (1,069 | ) | 608 | 266 | 347 | 723 | (845 | ) | 4,415 | ||||||||||||||||||||||
5,096 | (1,580 | ) | 608 | 266 | 347 | 964 | (845 | ) | 4,856 | |||||||||||||||||||||||
Earnings per share from continuing operations |
82.9p | 15.2p | 6.6p | 8.7p | 18.1p | (21.2)p | 110.3p | |||||||||||||||||||||||||
Earnings per share from discontinued operations |
26.7p | (26.7)p | ||||||||||||||||||||||||||||||
Total earnings per share |
109.6p | (26.7)p | 15.2p | 6.6p | 8.7p | 18.1p | (21.2)p | 110.3p | ||||||||||||||||||||||||
Weighted average number of shares (millions) |
4,003 | 4,003 |
(1) | The 2021 comparative results have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see page 238) and the impact of Share Consolidation implemented on 18 July 2022 (see page 233). |
82 |
GSK Annual Report 2022 |
Adjusted results reconciliation 31 December 2020 (1) |
Total results £m |
Profit from discon- tinued operations £m |
Intangible asset amortisation £m |
Intangible asset impairment £m |
Major restructuring £m |
Transaction- related £m |
Divestments, significant legal and other items £m |
Adjusted results £m |
||||||||||||||||||||||||
Turnover |
24,354 | 24,354 | ||||||||||||||||||||||||||||||
Cost of sales |
(7,929 | ) | 649 | – | 585 | 23 | – | (6,672 | ) | |||||||||||||||||||||||
Gross profit |
16,425 | 649 | – | 585 | 23 | – | 17,682 | |||||||||||||||||||||||||
Selling, general and administration |
(7,437 | ) | 2 | 395 | (1 | ) | 16 | (7,025 | ) | |||||||||||||||||||||||
Research and development |
(4,793 | ) | 75 | 198 | 198 | (4,322 | ) | |||||||||||||||||||||||||
Royalty income |
321 | 321 | ||||||||||||||||||||||||||||||
Other operating (expense)/income |
1,463 | 1,215 | (2,678 | ) | – | |||||||||||||||||||||||||||
Operating profit |
5,979 | 724 | 200 | 1,178 | 1,237 | (2,662 | ) | 6,656 | ||||||||||||||||||||||||
Net finance costs |
(842 | ) | 2 | 2 | (838 | ) | ||||||||||||||||||||||||||
Share of after-tax profits of associates and joint ventures |
33 | 33 | ||||||||||||||||||||||||||||||
Profit before taxation |
5,170 | 724 | 200 | 1,180 | 1,237 | (2,660 | ) | 5,851 | ||||||||||||||||||||||||
Taxation |
(67 | ) | (142 | ) | (38 | ) | (213 | ) | (231 | ) | (125 | ) | (816 | ) | ||||||||||||||||||
Tax rate |
1.3% |
13.9% |
||||||||||||||||||||||||||||||
Profit after taxation from continuing operations |
5,103 | 582 | 162 | 967 | 1,006 | (2,785 | ) | 5,035 | ||||||||||||||||||||||||
Profit after taxation from discontinued operations and other gains/(losses) from the demerger |
1,285 | (1,285 | ) | |||||||||||||||||||||||||||||
Profit after taxation from discontinued operations |
1,285 | (1,285 | ) | |||||||||||||||||||||||||||||
Total profit after taxation for the year |
6,388 | (1,285 | ) | 582 | 162 | 967 | 1,006 | (2,785 | ) | 5,035 | ||||||||||||||||||||||
Profit attributable to non-controlling interests from continuing operations |
230 | 251 | 481 | |||||||||||||||||||||||||||||
Profit attributable to shareholders from continuing operations |
4,873 | 582 | 162 | 967 | 755 | (2,785 | ) | 4,554 | ||||||||||||||||||||||||
Profit attributable to non-controlling interest from discontinued operations |
409 | (409 | ) | |||||||||||||||||||||||||||||
Profit attributable to shareholders from discontinued operations |
876 | (876 | ) | |||||||||||||||||||||||||||||
6,388 | (1,285 | ) | 582 | 162 | 967 | 1,006 | (2,785 | ) | 5,035 | |||||||||||||||||||||||
Total profit attributable to non-controlling interests |
639 | (409 | ) | 251 | 481 | |||||||||||||||||||||||||||
Total profit attributable to shareholders |
5,749 | (876 | ) | 582 | 162 | 967 | 755 | (2,785 | ) | 4,554 | ||||||||||||||||||||||
6,388 | (1,285 | ) | 582 | 162 | 967 | 1,066 | (2,785 | ) | 5,035 | |||||||||||||||||||||||
Earnings per share from continuing operations |
122.4p | 14.6p | 4.1p | 24.3p | 19.0p | (70.0)p | 114.4p | |||||||||||||||||||||||||
Earnings per share from discontinued operations |
22.0p | (22.0)p | ||||||||||||||||||||||||||||||
Total earnings per share |
144.4p | (22.0)p | 14.6p | 4.1p | 24.3p | 19.0p | (70.0)p | 114.4p | ||||||||||||||||||||||||
Weighted average number of shares (millions) |
3,981 | 3,981 |
(1) | The 2020 comparative results have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see page 238) and the impact of Share Consolidation implemented on 18 July 2022 (see page 233). |
83 |
2022 |
2021 (1) |
|||||||||||||||||||||||
Cash £m |
Non- cash £m |
Total £m |
Cash £m |
Non- cash £m |
Total £m |
|||||||||||||||||||
Separation preparation restructuring programme |
177 |
110 |
287 |
353 |
59 |
412 |
||||||||||||||||||
Significant acquisitions |
20 |
– |
20 |
– |
– |
– |
||||||||||||||||||
Legacy programmes |
9 |
5 |
14 |
32 |
(20 |
) |
12 |
|||||||||||||||||
206 |
115 |
321 |
385 |
39 |
424 |
(1) | The 2021 comparative results have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see page 238). |
2022 £m |
2021 (1) £m |
|||||||
Cost of sales |
102 |
102 | ||||||
Selling, general and administration |
180 |
277 | ||||||
Research and development |
39 |
45 | ||||||
Total Major restructuring costs from continuing operations |
321 |
424 |
(1) | The 2021 comparative results have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see page 238). |
– | Drive a common approach to R&D with improved capital allocation |
– | Align and improve the capabilities and efficiency of global support functions to support GSK |
– | Further optimise the supply chain and product portfolio, including the divestment of non-core assets |
84 |
GSK Annual Report 2022 |
Charge/(credit) |
2022 £m |
2021 (1) £m |
||||||
Contingent consideration on former Shionogi-ViiV Healthcare Joint Venture (including Shionogi preferential dividends) |
1,431 |
1,026 | ||||||
ViiV Healthcare put options and Pfizer preferential dividends |
85 |
48 | ||||||
Contingent consideration on former Novartis Vaccines business |
193 |
27 | ||||||
Contingent consideration on acquisition of Affinivax |
17 |
– | ||||||
Other adjustments |
24 |
42 | ||||||
Total transaction-related charges |
1,750 |
1,143 |
(1) | The 2021 comparative results have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see page 238). |
85 |
2022 £m |
2021 £m |
|||||||
Total net cash inflow from operating activities |
7,403 |
7,952 |
||||||
Total net cash (outflow) from investing activities |
(8,772 |
) |
(1,777 |
) | ||||
Total net cash inflow/(outflow) from financing activities |
823 |
(7,589 |
) | |||||
Decrease in cash and bank overdrafts |
(546 |
) |
(1,414 |
) | ||||
Cash and bank overdrafts at beginning of year |
3,819 |
5,262 |
||||||
Exchange adjustments |
152 |
(29 |
) | |||||
Decrease in cash and bank overdrafts |
(546 |
) |
(1,414 |
) | ||||
Cash and bank overdrafts at end of year |
3,425 |
3,819 |
||||||
Cash and bank overdrafts at end of year comprise: |
||||||||
Cash and cash equivalents |
3,723 |
4,274 |
||||||
Overdrafts |
(298 |
) |
(455 |
) | ||||
3,425 |
3,819 |
2022 £m |
2021 (1) £m |
|||||||
Net cash inflow from continuing operating activities |
6,634 |
6,277 |
||||||
Purchase of property, plant and equipment |
(1,143 |
) |
(950 |
) | ||||
Purchase of intangible assets |
(1,115 |
) |
(1,704 |
) | ||||
Proceeds from sale of property, plant and equipment |
146 |
132 |
||||||
Proceeds from sale of intangible assets |
196 |
641 |
||||||
Net finance costs |
(784 |
) |
(758 |
) | ||||
Dividends from joint ventures and associates |
6 |
9 |
||||||
Contingent consideration paid (reported in investing activities) |
(79 |
) |
(114 |
) | ||||
Contribution from non-controlling interests |
8 |
7 |
||||||
Distributions to non-controlling interests |
(521 |
) |
(239 |
) | ||||
Free cash inflow |
3,348 |
3,301 |
(1) | The 2021 comparative results have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see page 238). |
2022 £m |
2021 (1) £m |
|||||||
Free cash inflow |
3,348 |
3,301 |
(1) | The 2021 comparative results have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see page 238). |
86 |
GSK Annual Report 2022 |
2022 £m |
2021 £m |
|||||||
Assets |
||||||||
Non-current assets |
||||||||
Property, plant and equipment |
8,933 |
9,932 | ||||||
Right of use assets |
687 |
740 | ||||||
Goodwill |
7,046 |
10,552 | ||||||
Other intangible assets |
14,318 |
30,079 | ||||||
Investments in associates and joint ventures |
74 |
88 | ||||||
Other investments |
1,467 |
2,126 | ||||||
Deferred tax assets |
5,658 |
5,218 | ||||||
Derivative financial instruments |
– |
18 | ||||||
Other non-current assets |
1,194 |
1,676 | ||||||
Total non-current assets |
39,377 |
60,429 | ||||||
Current assets |
||||||||
Inventories |
5,146 |
5,783 | ||||||
Current tax recoverable |
405 |
486 | ||||||
Trade and other receivables |
7,053 |
7,860 | ||||||
Derivative financial instruments |
190 |
188 | ||||||
Current equity investments |
4,087 |
– | ||||||
Liquid investments |
67 |
61 | ||||||
Cash and cash equivalents |
3,723 |
4,274 | ||||||
Assets held for sale |
98 |
22 | ||||||
Total current assets |
20,769 |
18,674 | ||||||
Total assets |
60,146 |
79,103 | ||||||
Liabilities |
||||||||
Current liabilities |
||||||||
Short-term borrowings |
(3,952 |
) |
(3,601 | ) | ||||
Contingent consideration liabilities |
(1,289 |
) |
(958 | ) | ||||
Trade and other payables |
(16,263 |
) |
(17,554 | ) | ||||
Derivative financial instruments |
(183 |
) |
(227 | ) | ||||
Current tax payable |
(471 |
) |
(489 | ) | ||||
Short-term provisions |
(652 |
) |
(841 | ) | ||||
Total current liabilities |
(22,810 |
) |
(23,670 | ) | ||||
Non-current liabilities |
||||||||
Long-term borrowings |
(17,035 |
) |
(20,572 | ) | ||||
Corporation tax payable |
(127 |
) |
(180 | ) | ||||
Deferred tax liabilities |
(289 |
) |
(3,556 | ) | ||||
Pensions and other post-employment benefits |
(2,579 |
) |
(3,113 | ) | ||||
Other provisions |
(532 |
) |
(630 | ) | ||||
Derivative financial instruments |
– |
(1 | ) | |||||
Contingent consideration liabilities |
(5,779 |
) |
(5,118 | ) | ||||
Other non-current liabilities |
(899 |
) |
(921 | ) | ||||
Total non-current liabilities |
(27,240 |
) |
(34,091 | ) | ||||
Total liabilities |
(50,050 |
) |
(57,761 | ) | ||||
Net assets |
10,096 |
21,342 | ||||||
Total equity |
10,096 |
21,342 |
87 |
88 |
GSK Annual Report 2022 |
Maturity profile of bond debt |
2022 £m |
2021 £m |
|||||||
Liquid investments |
67 |
61 | ||||||
Cash and cash equivalents |
3,723 |
4,274 | ||||||
Short term borrowings |
(3,952 |
) |
(3,601) | |||||
Long term borrowings |
(17,035 |
) |
(20,572) | |||||
Net debt the end of the year |
(17,197 |
) |
(19,838) |
2022 £m |
2021 £m |
|||||||
Bank balances and deposits |
1,324 |
2,825 | ||||||
US Treasury and Treasury repo only money market funds |
146 |
54 | ||||||
Liquidity funds |
2,253 |
1,395 | ||||||
Cash and cash equivalents |
3,723 |
4,274 | ||||||
Liquid investments – government securities |
67 |
61 | ||||||
3,790 |
4,335 |
2022 £m |
2021 £m |
|||||||
Liquid investments |
67 |
61 | ||||||
Cash and cash equivalents |
3,723 |
4,274 | ||||||
Gross debt – fixed |
(19,214 |
) |
(23,167) | |||||
– floating |
(1,773 |
) |
(1,006) | |||||
Net debt | (17,197 |
) |
(19,838) |
2022 £m |
2021 £m |
|||||||
Total net debt at beginning of year |
(19,838 |
) |
(20,780) | |||||
Decrease in cash and bank overdrafts |
(7,597 |
) |
(2,504) | |||||
Decrease in liquid investments |
(1 |
) |
(18) | |||||
Net decrease in long-term loans |
569 |
– | ||||||
Net decrease of short-term loans |
4,053 |
2,003 | ||||||
Repayment of lease liabilities |
202 |
181 | ||||||
Debt of subsidiary undertaking acquired |
(24 |
) |
– | |||||
Exchange adjustments |
(1,531 |
) |
314 | |||||
Other non-cash movements |
(207 |
) |
(134) | |||||
Decrease/(increase) in net debt from continuing operations |
(4,536 |
) |
(158) | |||||
Decrease/(increase) in net debt from discontinued operations |
7,177 |
1,100 | ||||||
Total net debt at end of year |
(17,197 |
) |
(19,838) |
89 |
2022 £m |
2021 £m |
|||||||
Total equity at beginning of year |
21,342 |
20,808 | ||||||
Total comprehensive income for the year |
14,790 |
4,759 | ||||||
Non-cash distribution to non-controlling interests |
(2,960) |
– | ||||||
Deconsolidation of former subsidiaries |
(3,045) |
– | ||||||
Dividends to shareholders |
(3,467) |
(3,999) | ||||||
Ordinary shares issued |
25 |
21 | ||||||
Changes in non-controlling interests |
(20) |
– | ||||||
Non-cash dividends to shareholders |
(15,526) |
– | ||||||
Hedging gain/loss transferred to non-financial assets |
9 |
– | ||||||
Transaction with non-controlling interest |
– |
10 | ||||||
Share-based incentive plans |
357 |
367 | ||||||
Tax on share-based incentive plans |
(8) |
11 | ||||||
Contributions from non-controlling interests |
8 |
7 | ||||||
Distributions to non-controlling interests |
(1,409) |
(642) | ||||||
Total equity at end of year |
10,096 |
21,342 |
Total £m |
Under 1 yr £m |
1-3 yrs £m |
3-5 yrs £m |
5 yrs+ £m |
||||||||||||||||
Loans |
20,086 | 3,786 | 3,213 | 2,259 | 10,828 | |||||||||||||||
Interest on loans |
6,322 | 594 | 1,101 | 961 | 3,666 | |||||||||||||||
Finance lease obligations |
1,008 | 167 | 328 | 177 | 336 | |||||||||||||||
Future Finance Charges on leases |
146 | 25 | 41 | 28 | 52 | |||||||||||||||
Lease contracts that have not yet commenced |
396 | 18 | 42 | 68 | 268 | |||||||||||||||
Intangible assets |
10,659 | 317 | 590 | 1,616 | 8,136 | |||||||||||||||
Property, plant & equipment |
743 | 612 | 131 | – | – | |||||||||||||||
Investments |
138 | 51 | 71 | 13 | 3 | |||||||||||||||
Purchase commitments |
161 | 96 | 61 | 4 | – | |||||||||||||||
Pensions and post-retirement benefits |
345 | 345 | – | – | – | |||||||||||||||
Total |
40,004 | 6,011 | 5,578 | 5,126 | 23,289 |
90 |
GSK Annual Report 2022 |
Total £m |
Under 1 yr £m |
1-3 yrs £m |
3-5 yrs £m |
5 yrs+ £m |
||||||||||||||||
Guarantees |
12 | 8 | 3 | – | 1 | |||||||||||||||
Other contingent liabilities |
46 | 10 | – | 11 | 25 | |||||||||||||||
Total |
58 | 18 | 3 | 11 | 26 |
91 |
(1) | The 2021 comparative results have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see page 238). |
92 |
GSK Annual Report 2022 |
93 |
– | Turnover |
– | Taxation (Note 14) |
– | Legal and other disputes (Notes 47) |
– | Contingent liabilities (Note 35) |
– | Pensions and other post-employment benefits (Note 31) |
– | We have arrangements with certain indirect customers whereby the customer is able to buy products from wholesalers at reduced prices. A chargeback represents the difference between the invoice price to the wholesaler and the indirect customer’s contractual discounted price. Accruals for estimating chargebacks are calculated based on the terms of each agreement, historical experience and product growth rates |
– | Customer rebates are offered to key managed care and Group Purchasing Organisations and other direct and indirect customers. These arrangements require the customer to achieve certain performance targets relating to the value of product purchased, formulary status or pre-determined market shares relative to competitors. The accrual for customer rebates is estimated based on the specific terms in each agreement, historical experience and product growth rates |
– | The US Medicaid programme is a state-administered programme providing assistance to certain poor and vulnerable patients. In 1990, the Medicaid Drug Rebate Program was established to reduce state and federal expenditure on prescription drugs. In 2010, the Patient Protection and Affordable Care Act became law. We participate by providing rebates to states. Accruals for Medicaid rebates are calculated based on the specific terms of the relevant regulations or the Patient Protection and Affordable Care Act |
– | Cash discounts are offered to customers to encourage prompt payment. These are accrued for at the time of invoicing and adjusted subsequently to reflect actual experience |
– | We record an accrual for estimated sales returns by applying historical experience of customer returns to the amounts invoiced, together with market-related information such as stock levels at wholesalers, anticipated price increases and competitor activity |
2022 |
2021 | 2020 | ||||||||||||||||||||||
£m |
Margin % |
£m | Margin % |
£m | Margin % |
|||||||||||||||||||
Gross turnover |
29,814 |
100 |
24,432 | 100 | 24,570 | 100 | ||||||||||||||||||
Market-driven segments |
(8,275 |
) |
(28 |
) |
(6,875 | ) | (28 | ) | (7,004 | ) | (29 | ) | ||||||||||||
Government mandated and state programmes |
(6,218 |
) |
(21 |
) |
(5,134 | ) | (21 | ) | (5,710 | ) | (23 | ) | ||||||||||||
Cash discounts |
(536 |
) |
(2 |
) |
(438 | ) | (2 | ) | (453 | ) | (2 | ) | ||||||||||||
Customer returns |
(255 |
) |
(1 |
) |
(253 | ) | (1 | ) | (235 | ) | (1 | ) | ||||||||||||
Prior year adjustments | 780 |
3 |
855 | 4 | 540 | 2 | ||||||||||||||||||
Other items |
(768 |
) |
(2 |
) |
(673 | ) | (3 | ) | (560 | ) | (2 | ) | ||||||||||||
Total deductions |
(15,272 |
) |
(51 |
) |
(12,518 | ) | (51 | ) | (13,422 | ) | (55 | ) | ||||||||||||
Net turnover |
14,542 |
49 |
11,914 | 49 | 11,148 | 45 |
94 |
GSK Annual Report 2022 |
95 |
GSK Annual Report 2022 |
||||||
Corporate governance |
||||||
In this section |
||||||
97 |
||||||
103 |
||||||
107 |
||||||
110 |
||||||
112 |
||||||
117 |
||||||
130 |
||||||
96 |
GSK Annual Report 2022 |
Sir Jonathan Symonds, CBE Non-Executive Chair Age: Nationality: Appointed: |
Skills and experience Jon has extensive international financial, life sciences and governance experience. Jon served as an Independent Non-Executive Director of HSBC Holdings plc from April 2014, and as Deputy Group Chairman from August 2018, until his retirement from the Board in February 2020. He was previously Chairman of HSBC Bank plc, Chief Financial Officer of Novartis AG, Partner and Managing Director of Goldman Sachs, Chief Financial Officer of AstraZeneca plc, and a Partner at KPMG. His governance experience includes roles as Non-Executive Director and Chair of the Audit Committees of Diageo plc and QinetiQ Group plc, Non-Executive Chair of Proteus Digital Health Inc and Non-Executive Director of Rubius Therapeutics, Inc. Jon is a Fellow of the Institute of Chartered Accountants in England and Wales. External appointments Non-Executive Director, Genomics England Limited having previously served as its Chairman; Non-Executive Chair, Energy Aspects; Member, European Round Table for Industry; Senior Advisor to Chatham House. | |
Dame Emma Walmsley Chief Executive Officer Age: Nationality: Appointed: Chief Executive Officer from 1 April 2017 |
Skills and experience Prior to her appointment as GSK’s CEO, Emma was the CEO of GSK Consumer Healthcare, a Joint Venture between GSK and Novartis, from its creation in March 2015. Emma joined GSK in 2010 from L’Oreal, having worked for 17 years in a variety of roles in Paris, London, New York and Shanghai. Emma was previously a Non-Executive Director of Diageo plc. Emma holds an MA in Classics and Modern Languages from Oxford University. External appointments Independent director, Microsoft, Inc. | |
Iain Mackay Chief Financial Officer Age: Nationality: Appointed: Chief Financial Officer from 1 April 2019 |
Skills and experience Prior to joining GSK, Iain was Group Finance Director at HSBC Holdings plc, a position he held for eight years. A chartered accountant, Iain has lived and worked in Asia, the US and Europe and before HSBC was at General Electric, Schlumberger Dowell and Price Waterhouse. Iain was previously a Trustee of the British Heart Foundation and Chair of its Audit and Risk Committee. Iain holds an MA in Business Studies and Accounting and holds an Honorary Doctorate from Aberdeen University in Scotland. Iain is a member of the Institute of Chartered Accountants of Scotland. Iain will step down as CFO and Executive Director on 1 May 2023. He will continue as an employee and leave the company on 31 December 2023. External appointments Non-Executive Director, Chair of Audit & Risk Committee and member of Remuneration Committee, National Grid plc; Member, Court of the University of Aberdeen and Chair of its Remuneration Committee; Member, The 100 Group and Chair of its Stakeholder Communications and Reporting Committee. | |
Elizabeth (Liz) McKee Anderson Independent Non-Executive Director Age: Nationality: Appointed: |
Skills and experience Liz brings significant experience in commercial biopharmaceuticals and is a seasoned biotech board member. Her significant experience in commercial biopharmaceuticals, both operationally and at Board level, as well as her deep understanding of the biotechnology sector are invaluable to GSK as a pure biopharma company. Prior to her current roles, Liz served as Worldwide Vice President and commercial leader in infectious diseases and vaccines and also for immunology and oncology at Janssen Pharmaceuticals, and as Vice President and General Manager at Wyeth Vaccines. Liz was also previously a Board member of Bavarian Nordic A/S and of Huntsworth Plc. External appointments Board Member, BioMarin Pharmaceutical, Inc; Board Member, Revolution Medicines, Inc; Board Member, Insmed, Inc; Trustee, The Wistar Institute; Director, Aro Biotherapeutics Company. |
97 |
Charles Bancroft Senior Independent Non-Executive Director Age: Nationality: Appointed: Senior Independent Non-Executive Director from 18 July 2022 |
Skills and experience Charlie has a wealth of financial and management experience in global biopharma. Charlie retired from a successful career at Bristol Myers Squibb (BMS) in March 2020 where he held a number of leadership roles in commercial, strategy and finance. Beginning his career at BMS in 1984, he held positions of increasing responsibility within the finance organisation and had commercial operational responsibility for Latin America, Middle East, Africa, Canada, Japan and several Pacific Rim countries. He was appointed Chief Financial Officer in 2010, Chief Financial Officer and Executive Vice President, Global Business Operations in 2016 and Executive Vice President and Head of Integration and Strategy & Business Development in 2019. Charlie successfully steered BMS through a period of strategic transformation, including its $74 billion acquisition of Celgene. Charlie also served as a member of the Board of Colgate-Palmolive Company from 2017 until March 2020. External appointments Board Member, Kodiak Sciences Inc; Board Member, BioVector Inc; Advisory Board Member, Drexel University’s LeBow College of Business. The Board determined that Charlie has recent and relevant financial experience and agreed that he has the appropriate qualifications and background to be an audit committee financial expert. | |
Dr Hal Barron Non-Executive Director Age: Nationality: Appointed: Chief Scientific Officer and President, R&D from 1 April 2018 Transitioned to the role of Non-Executive Director on 1 August 2022 |
Skills and experience Hal joined GSK in 2018 as Chief Scientific Officer and President, R&D. On 1 August 2022, he transitioned to the role of Non-Executive Director, with additional responsibilities to support R&D. Prior to joining GSK, Hal was President, R&D at Calico LLC (California Life Company), an Alphabet-funded company that uses advanced technologies to increase understanding of lifespan biology. Prior to this, Hal was Executive Vice President, Head of Global Product Development, and Chief Medical Officer of Roche, responsible for all the products in the combined portfolio of Roche and Genentech. At Genentech, he was Senior Vice President of Development and Chief Medical Officer. Hal was a Non-Executive Director and Chair of the Science & Technology Committee at Juno Therapeutics, Inc until March 2018, when it was acquired by Celgene Corporation. Hal previously served as a Non-Executive Board Director of GRAIL, Inc and an Advisory Board Member of Verily Life Sciences LLC. External appointments CEO and Board Co-Chair, Altos Labs Inc; Associate Adjunct Professor, Epidemiology & Biostatistics, University of California, San Francisco. | |
Dr Anne Beal Independent Non-Executive Director Age: Nationality: Appointed: |
Skills and experience Anne brings extensive healthcare experience to the Board as a physician and entrepreneur combined with a passion for patient advocacy. She is a recognised health policy expert in the development of global and national programmes for improving healthcare access for all patient groups and in ensuring the voice of patients is reflected in research programmes. Prior to her current roles, Anne spent six years at Harvard Medical School and Massachusetts General Hospital, where she was an instructor in paediatrics. She has also held leadership roles at the Commonwealth Fund and the Aetna Foundation. Anne was previously Deputy Executive Director and Chief Engagement Officer for The Patient-Centered Outcomes Research Institute in the US and Chief Patient Officer and Global Head of Patient Solutions at Sanofi. External appointments Founder and CEO, AbsoluteJOI Skincare; Board Member, AcademyHealth; Board Member, Prolacta Bioscience. |
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Dr Harry (Hal) C Dietz Independent Non-Executive Directorand Scientific & Medical Expert Age: Nationality: Appointed: |
Skills and experience Hal brings extensive experience in the field of human genetics which is central to GSK’s approach to R&D. He is a former President of the American Society of Human Genetics and is recognised as the world’s leading authority on a genetic disorder known as Marfan Syndrome. He also brings experience in development of novel therapies, in particular in relation to disease-modifying treatments for fibrotic and neurodegenerative diseases. In total, Hal has authored 282 original publications in peer-reviewed journals across his career. As a physician scientist, he has dedicated his entire career to the care and study of individuals with heritable connective tissue disorders with primary perturbations of extracellular matrix homeostasis and function. His lab has identified the genes for many of these conditions, for which he uses model systems to elucidate disease mechanisms. Hal has received multiple prestigious awards including the Curt Stern Award from the American Society of Human Genetics, the Colonel Harland Sanders Lifetime Achievement Award in Medical Genetics, the Taubman Prize for excellence in translational medical science, the Harrington Prize from the American Society for Clinical Investigation and the Harrington Discovery Institute, the Pasarow Award in Cardiovascular Research, the InBev-Baillet Latour Health Prize from the country of Belgium, and the Research Achievement Award from the American Heart Association. He is an inductee of the American Society for Clinical Investigation, American Association for the Advancement of Science, Association of American Physicians, National Academy of Medicine, and National Academy of Sciences. External appointments Victor A. McKusick Professor of Paediatrics, Medicine, and Molecular Biology & Genetics in the Department of Genetic Medicine, The Johns Hopkins University School of Medicine; Investigator, Howard Hughes Medical Institute; Consultant and Chair of Scientific Advisory Board, Aytu Biopharma; Independent Chair, GSK’s Human Genetics Scientific Advisory Board; founded and previously Scientific Adviser to Blade Therapeutics. | |
Dr Jesse Goodman Independent Non-Executive Directorand Scientific & Medical Expert Age: Nationality: Appointed: |
Skills and experience Jesse brings scientific and public health expertise to the Board’s deliberations. He has a wealth of experience spanning science, medicine, vaccines, regulation and public health, and has a proven record in addressing pressing public health needs from both the academic and federal sectors. Jesse previously served in senior leadership positions at the US Food and Drug Administration (FDA), including most recently as the FDA’s Chief Scientist and previously as Deputy Commissioner for Science and Public Health and as Director of the Center for Biologics Evaluation and Research (CBER). Jesse played a leadership role in developing the FDA’s Regulatory Science and Medical Countermeasures Initiatives and has worked collaboratively with industry, academia, government and global public health and regulatory partners to prepare for and respond to major public health threats, including emerging infectious diseases, disasters and terrorism. He led the FDA’s response to West Nile Virus and to the 2009 H1N1 influenza pandemic and served on the Senior Leadership Team for the 2010 White House Medical Countermeasure Review. Jesse was previously a member of both the Scientific Advisory Committee and the Regulatory and Legal Working Group of the Coalition for Epidemic Preparedness Innovations (CEPI). External appointments Professor of Medicine and Attending Physician, Infectious Diseases, Georgetown University and directs the Georgetown University Center on Medical Product Access, Safety and Stewardship (COMPASS); Board Member (formerly President), United States Pharmacopeia (USP); Board Member, Scientific Counselors for Infectious Diseases, Centers for Disease Control and Prevention (CDC); Board Member, Intellia Therapeutics Inc; Member, US National Academy of Medicine; Board Member, Adaptive Phage Therapeutics, Inc. |
99 |
Urs Rohner Independent Non-Executive DirectorAge: Nationality: Appointed: |
Skills and experience Urs has a broad business, banking and legal background and extensive senior level experience at multinational companies. Urs has served as Chairman on a number of Boards, most recently for Credit Suisse Group from 2011 until April 2021. Prior to joining Credit Suisse in 2004, Urs served as Chairman of the Executive Board and CEO of ProSieben and ProSiebenSat.1 Media AG. This followed a number of years in private practice at major law firms in Switzerland and the US, having been admitted to the bars of the canton of Zurich in Switzerland in 1986 and the state of New York in the US in 1990. External appointments Member, International Advisory Board, Investcorp; Chair, Vega Cyber Associates AG. | |
Dr Vishal Sikka Independent Non-Executive DirectorAge: Nationality: Appointed: |
Skills and experience Vishal has a distinguished background in technology and particularly in the field of Artificial Intelligence (AI) and Machine Learning, which is central to GSK’s approach to R&D. He is the founder and CEO of Vianai Systems, Inc, a Silicon Valley-based company that provides advanced technological software and services in AI and Machine Learning to large enterprises around the world. Prior to founding Vianai Systems, Vishal served as CEO of Infosys Limited and as a member of the Executive Board of SAP SE. Vishal has a PhD in Artificial Intelligence from Stanford University and has co-authored several research abstracts related to AI, technology and database management.External appointments Founder and CEO, Vianai Systems, Inc; Board Member, Oracle Corporation; Member, Supervisory Board, BMW AG. |
Manvinder Singh (Vindi) Banga | 1 Sept 2016 to July 2022 | Retired from the Board on appointment to the Haleon plc Board effective on demerger | ||
Dame Vivienne Cox | 1 July 2016 to 18 July 2022 | |||
Lynn Elsenhans | 1 July 2012 to 18 July 2022 | Retired from the Board after nine years of service | ||
Dr Laurie Glimcher | 1 Sept 2017 to 10 Oct 2022 | Retired from the Board after over five years of service |
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GSK Annual Report 2022 |
Skills and experience | ||
Emma Walmsley Chief Executive Officer |
Emma joined GSK in 2010 and the GLT in 2011. See Board biographies on pages 97 to 100. | |
Iain Mackay 1 Chief Financial Officer |
Iain joined GSK and the GLT in 2019. See Board biographies on pages 97 to 100. | |
Diana Conrad Chief People Officer |
Diana was appointed Chief People Officer and member of the GLT in April 2019. She was previously Senior Vice President, HR, Pharmaceuticals R&D from 2016 where she played a key strategic role as leader of the R&D people and culture agenda to support its transformation. Diana joined GSK Canada’s HR team in 2000 where she held several roles of increasing responsibility before becoming Senior Vice President, HR for Consumer Healthcare in 2009. Prior to joining GSK, she held HR roles in companies including GE Capital, Gennum Corporation and Zenon Environmental Laboratories. Diana has an Honours Bachelor of Arts from McMaster University in Canada. | |
James Ford SVP and Group General Counsel, Legal and Compliance |
James joined the GLT in 2018, when he was appointed Senior Vice President and Group General Counsel, later taking responsibility for Compliance, Corporate Security and Investigations in 2021. He joined GSK in 1995 and has served as General Counsel Consumer Healthcare, General Counsel Global Pharmaceuticals, Vice President of Corporate Legal and was Acting Head of Global Ethics and Compliance. Prior to GSK, James was a solicitor at Clifford Chance and DLA. He holds a law degree from the University of East Anglia and a Diploma in Competition Law from King’s College. He is qualified as a solicitor in England and Wales and is an attorney at the New York State Bar. James is based in London and has practised law and lived in the US, Singapore and Hong Kong. James was co-chair of the US-based Civil Justice Reform Group 2019-2022, and is a director of the European General Counsel Association and the Association of Corporate Counsel. | |
Sally Jackson SVP, Global Communications and CEO Office |
Sally joined the GLT in March 2019 as Senior Vice President, Global Communications and CEO Office. She leads our Communications and Government Affairs function globally and is also the CEO’s Chief of Staff. Prior to this, Sally was Senior Vice President, Office of the CEO and CFO and she previously served as Head of Investor Relations. She joined GSK in 2001. Sally holds a degree in Natural Sciences from the University of Cambridge. | |
Luke Miels Chief Commercial Officer |
Luke joined GSK and the GLT in 2017. As Chief Commercial Officer he is responsible for our commercial portfolio of medicines and vaccines. Luke also co-chairs the Portfolio Investment Board with Tony Wood and is a member of the ViiV Healthcare Board. Outside of GSK, Luke is a member of the Singapore Economic Development Board.He previously worked for AstraZeneca as Executive Vice President of their European business and, prior to that, was Executive Vice President of Global Product and Portfolio Strategy, Global Medical Affairs and Corporate Affairs. Before that, he was head of Asia for Roche, based in Shanghai and then Singapore. Prior to that he held roles of increasing seniority at Roche and Sanofi-Aventis in the US, Europe and Asia. Luke holds a Bachelor of Science degree in Biology from Flinders University in Adelaide and a MBA from the Macquarie University, Sydney. | |
Shobie Ramakrishnan Chief Digital and Technology Officer |
Shobie joined the GLT in 2021 when she was appointed Chief Digital and Technology Officer. She joined GSK in 2018 and has deep and broad experience in both biotech and hi-tech companies and, most recently, has led Digital and Technology for GSK’s Global Commercial organisation, transforming the company’s capabilities in digital, data and analytics and playing a pivotal role in establishing a more agile commercial operating model. Before joining GSK, Shobie held senior technology leadership roles in organisations including AstraZeneca, Salesforce, Genentech and Roche. She is a former member of the board of directors at Remediant and is a member of the board of directors at SustainableIT.org.Shobie holds a Bachelor’s degree in Electronics Engineering from Vellore Institute of Technology, University of Madras, India. |
101 |
Skills and experience | ||
David Redfern President, Corporate Development |
David joined the GLT as Chief Strategy Officer in 2008 and is responsible for corporate development and strategic planning. Previously, he was Senior Vice President, Northern Europe with responsibility for GSK’s pharmaceutical businesses in that region and, before that, he was Senior Vice President for Central and Eastern Europe. He joined GSK in 1994. David was appointed Chairman of the Board of ViiV Healthcare Limited in 2011 and a Non-Executive Director of the Aspen Pharmacare Holdings Limited Board in 2015.He has a Bachelor of Science degree from Bristol University and is a Chartered Accountant. | |
Regis Simard President, Global Supply Chain |
Regis joined the GLT in 2018, when he became President, Pharmaceuticals Supply Chain. He is responsible for the manufacturing and supply of GSK’s medicines and vaccines. In addition, he leads Quality and Environment, Health, Safety and Sustainability at a corporate level. Regis joined GSK in 2005 as a Site Director in France, rising to become Senior Vice President of Global Pharmaceuticals Manufacturing before his current role. Previously, he held senior positions at Sony, Konica Minolta and Tyco Healthcare. He is a member of the Board of ViiV Healthcare. He is a mechanical engineer and holds an MBA. | |
Phil Thomson President, Global Affairs |
Phil joined the GLT in 2011. He was appointed President, Global Affairs in 2017, and has responsibility for the Group’s strategic approach to stakeholder engagement, reputation and policy development. Previously, Phil was Senior Vice President, Communications and Government Affairs. He joined Glaxo Wellcome as a commercial trainee in 1996. Phil is also Chair of The Whitehall & Industry Group and holds a degree in English, History and Russian Studies from Durham University. | |
Deborah Waterhouse CEO, ViiV Healthcare and President, GSK Global Health |
Deborah was appointed to the GLT in January 2020. She became Chief Executive Officer of ViiV Healthcare in April 2017. In addition to ViiV, Deborah also leads GSK’s Global Health organisation. Deborah joined GSK in 1996 and, prior to ViiV, was the Senior Vice President of Primary Care within GSK’s US business. She has a strong track record of performance in both specialty and primary care. Deborah led the HIV business in the UK before heading the HIV Centre of Excellence for Pharma Europe and held roles as General Manager of Australia and New Zealand and Senior Vice President for Central and Eastern Europe. Deborah is a Non-Executive Director of Schroders plc and holds a degree in Economic History and English Literature from Liverpool University. | |
Tony Wood Chief Scientific Officer |
Tony was appointed Chief Scientific Officer (CSO) designate on 19 January 2022 and became CSO, Head of R&D and a member of GLT on 1 August 2022. He joined GSK from Pfizer in 2017 as Senior Vice President, Medicinal Science and Technology, responsible for all science and technology platforms driving the delivery of new innovation. Tony has led large-scale global organisations in drug discovery and development in multiple therapeutic areas, including immunology, oncology and infectious diseases. During his time at Pfizer, Tony was responsible for the invention of a new antiretroviral medication used to treat HIV infection. He is a Fellow of the Academy of Medical Sciences, an Honorary Fellow of the Royal Society of Chemistry (RSC), the highest honour given by the RSC, and a Fellow of the Royal Society of Biology. Tony has a BSc in chemistry and PhD in organic synthesis from the University of Newcastle, and was a postdoctoral fellow at Imperial College, London. He is also currently a visiting professor at IMCM Oxford. |
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2022 Board activity Pre-demerger (1 January to 17 July) |
||||||
Routine |
Additional* | |||||
Board | 3 | 3 | ||||
Nominations & Corporate Governance | 3 | 1 | ||||
Science | 1 | 2 | ||||
Corporate Responsibility | 1 | 1 | ||||
Audit & Risk | 3 | 2 | ||||
Remuneration | 3 | 2 | ||||
Chairs’ | 0 | 5 |
– | Development and approval of demerger documentation and forecast |
– | Haleon plc (Haleon): Chair appointment and Board development |
– | GSK Remuneration policy development and investor approval |
– | GSK Board development and CSO succession |
– | Business development |
Post-demerger (18 July to 31 December) |
||||||
Routine |
Additional* | |||||
Board | 3 | 2 | ||||
Nominations & Corporate Governance | 2 | 0 | ||||
Science | 2 | 1 | ||||
Corporate Responsibility | 3 | 0 | ||||
Audit & Risk | 3 | 2 | ||||
Remuneration | 3 | 1 | ||||
Chairs’ | 0 | 1 |
– | CFO succession |
– | Zantac |
– | Business development |
2022 separation process – Disciplined Board approach to deliver demerger – Creation of world-leading consumer healthcare business with competitive long-term growth prospects and compelling financial proposition – Newly focused GSK with strengthened balance sheet for investment in pipeline/R&D – Both companies with clear targets for upper-quartile growth, set out at Investor Updates |
103 |
– | Sierra Oncology |
– | Affinivax |
– | a licensing agreement with Spero Therapeutics for tebipenem HBr, a late-stage antibiotic targeted to treat complicated urinary tract infections; a significant unmet medical need |
– | a collaboration with Wave Life Sciences, bringing together Wave’s oligonucleotide platform and GSK’s expertise in genetics and genomics |
– | a collaboration with Tempus to provide GSK with access to Tempus’ AI-enabled platform, including its library of de-identified patient data – one of the world’s largest sources of clinical and molecular data |
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GSK Annual Report 2022 |
– | Delivery of performance targets |
– | Execution of R&D pipeline and business development |
– | Long-term R&D strategy and approach |
– | People/Talent/Culture |
– | ESG Leadership |
– | Zantac |
– | Focus on shareholder value creation |
– | a review of our current ways of working, with recommendations for further improvement and establishing priorities for the Board agenda for the next three to five years |
– | an evaluation of the Board and its committees during 2022 |
– | ambitious for patients |
– | accountable for impact |
– | doing the right thing |
105 |
– | Dr Vishal Sikka |
– | Liz McKee Anderson |
– | Julie Brown |
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GSK Annual Report 2022 |
– | a clear division of responsibilities for individual and collective Board roles described on the next page |
– | the appropriate distribution of workload to the Board committee with the requisite focus and skills |
– | highly committed Board Directors motivated to discharge their roles and responsibilities for the success of the company |
Committee roles |
Committee | |||||
Committee |
Role and focus |
Membership |
report on page | |||
Chairs’ |
Acts on behalf of the Board between its scheduled meetings to take decisions on urgent matters in accordance with matters and authority delegated to it by the Board from time to time | Sir Jonathan Symonds (Company Chair) Senior Independent Director Chairs of the Board’s committees |
– | |||
Corporate Responsibility |
Considers GSK’s Trust priority and has oversight of our responsible business approach and ESG strategy, performance and reporting. This reflects the most important issues for responsible and sustainable business growth. It has oversight of the views and interests of our internal and external stakeholders and reviews issues that have the potential for serious impact upon GSK’s business and reputation | Dr Anne Beal (Chair) Dr Jesse Goodman Dr Vishal Sikka |
117-118 | |||
Science |
Supports the Board in its understanding of the key strategic themes, upon which the company’s R&D strategy is based, and of external transactions, by performing in-depth reviews of the underlying scientific assumptions to give the Board technical assurance. It also undertakes more in-depth risk oversight of R&D-related risks |
Dr Hal Dietz (Chair from 1 January 2023) Dr Jesse Goodman (Chair to 31 December 2022) Dr Hal Barron |
118-120 | |||
Nominations & Corporate Governance |
Reviews the structure, size and composition of the Board, the appointment of members to Board committees and the appointment of Corporate Officers. It makes recommendations to the Board as appropriate. It also plans and assesses orderly succession for Executive and Non-Executive Directors and reviews management’s Succession Plan to ensure its adequacyIs responsible for reporting to the Board, overseeing and monitoring corporate governance arrangements and for making recommendations to the Board to ensure the company’s standards and arrangements are consistent with existing corporate governance standards and emerging best practice. It also reviews Board and GLT conflicts of interest |
Sir Jonathan Symonds (Chair) Charles Bancroft Dr Anne Beal Urs Rohner |
120-124 | |||
Audit & Risk |
Reviews the financial reporting process, the integrity of the company’s financial statements, the external and internal audit process, the system of internal control and the identification and management of risks, and the company’s process for monitoring compliance with laws, regulations and ethical codes of practice. It also oversees ESG data reporting and assurance Initiates audit tenders, the selection and appointment of the external auditor, setting its remuneration and exercising oversight of its work |
Charles Bancroft (Chair) Elizabeth McKee Anderson Urs Rohner |
124-129 | |||
Remuneration |
Sets the company’s Remuneration policy having regard to GSK’s workforce remuneration so that GSK is able to recruit, retain and motivate its executives The Remuneration policy is regularly reviewed to ensure that it is consistent with the company’s scale and scope of operations, supports the business strategy and growth plans, is aligned to the wider workforce and helps drive the creation of shareholder value (The Chair and the CEO are responsible for evaluating and making recommendations to the Board on the remuneration arrangements and policy for the Non-Executive Directors) |
Urs Rohner (Chair) Charles Bancroft Dr Anne Beal Elizabeth McKee Anderson |
132-164 | |||
Each Board committee has written terms of reference which are approved by the Board and are reviewed at least annually to ensure that they comply with the latest legal and regulatory requirements and reflect best practice developments. The current full terms of reference of each Board committee are available on gsk.com. Board and committee meeting attendance for 2022 and oversight of the company’s policy on external appointments is set out on page 109. |
107 |
Leadership Chair Jonathan Symonds – leads and manages the business of the Board – provides direction and focus – ensures a clear structure for effective operation of the Board and its committees – maintains a dialogue with shareholders about the governance of the company – sets the Board agenda and ensures sufficient time is allocated to promote effective debate to support sound decision-making – ensures the Board receives accurate, timely and clear information – meets continuously with each Non-Executive Director to discuss individual contributions and performance, together with training and development needs – shares peer feedback that is provided as part of the Board evaluation process – meets regularly with all the Non-Executive Directors independently of the Executive Directors + The Chair’s role description is available on gsk.com Chief Executive Officer Emma Walmsley – is responsible for the management of the Group and its business – develops the Group’s strategic direction for consideration and approval by the Board – implements the agreed strategy – is supported by members of the GLT – maintains a continual and active dialogue with shareholders in respect of the company’s performance + The Chief Executive Officer’s role description is available on gsk.com |
Independent oversight and rigorous challenge Non-Executive Directors – provide a strong independent element to the Board – constructively support and challenge management and scrutinise its performance in achieving agreed deliverables – shape proposals on strategy and offer specialist advice to management – each has a letter of appointment setting out the terms and conditions of their directorship – devote such time as is necessary to the proper performance of their duties – are expected to attend all meetings as required Independence statement The Board considers all of its Non-Executive Directors who are identified on pages 97 to 100, with the exception of Dr Hal Barron, to be independent after being assessed against Provision 10 of the Financial Reporting Council's (FRC) UK Corporate Governance Code (Code). The independence and commitment of Dr Jesse Goodman and Urs Rohner, who have each served on the Board for over six years, has been subjected to a rigorous review. + GSK’s Non-Executive Director role description is available on gsk.com Senior Independent Director Charles Bancroft – acts as a sounding board for the Chair and a trusted intermediary for other Directors – together with the Non-Executive Directors, leads the annual review of the Chair’s performance, taking into account the views of the Executive Directors – discusses the results of the Chair’s effectiveness review with the Chair – leads the search and appointment process and makes the recommendation to the Board for a new Chair – acts as an additional point of contact for shareholders, maintains an understanding of the issues and concerns of major shareholders through meetings with investors and briefings from the Company Secretary and Investor Relations + GSK’s Senior Independent Non-Executive Director’s role description is available on gsk.com |
Company Secretary Victoria Whyte |
– is secretary to the Board and all Board committees – supports the Board and Committee Chairs in annual agenda planning – ensures information is made available to Board members in a timely fashion – supports the Chair in designing and delivering Board inductions – coordinates continuing business awareness and training requirements for the Non-Executive Directors – undertakes internal Board and committee evaluations at the request of the Chair – advises the Directors on Board practice and procedures, and corporate governance matters – chairs the Group’s Disclosure Committee – operates a Board-approved appointments policy that reflects the Board and external appointment requirements of the Code – is a point of contact for shareholders on all corporate governance matters |
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2022 Board and committee attendance |
||||||||||||||||||||||||||||||||||||||||||
Board |
Chairs’ |
Corporate Responsibility |
Science |
Nominations & Corporate Governance |
Audit & Risk |
Remuneration |
||||||||||||||||||||||||||||||||||||
Total number of routine meetings |
6 |
6 |
4 |
3 |
5 |
6 |
6 |
|||||||||||||||||||||||||||||||||||
Current members |
Attended |
Attended |
Attended |
Attended |
Attended |
Attended |
||||||||||||||||||||||||||||||||||||
Sir Jonathan Symonds |
6 | 6 | 5 | |||||||||||||||||||||||||||||||||||||||
Emma Walmsley |
6 | |||||||||||||||||||||||||||||||||||||||||
Iain Mackay |
6 | |||||||||||||||||||||||||||||||||||||||||
Elizabeth McKee Anderson |
1 (2) | 1 (2) | 1 (2) | |||||||||||||||||||||||||||||||||||||||
Dr Hal Barron |
6 | 2 (2) | ||||||||||||||||||||||||||||||||||||||||
Charles Bancroft |
6 | 5 | 5 | 6 | 3 (3) | |||||||||||||||||||||||||||||||||||||
Dr Anne Beal |
6 | 1 (3) | 4 | 2 (2) | 5 (5) | 3 (3) | ||||||||||||||||||||||||||||||||||||
Dr Harry C Dietz |
6 | 3 | ||||||||||||||||||||||||||||||||||||||||
Dr Jesse Goodman |
6 | 5 | 4 | 3 | ||||||||||||||||||||||||||||||||||||||
Urs Rohner |
6 | 6 | 5 | 3 (3) | 6 | |||||||||||||||||||||||||||||||||||||
Dr Vishal Sikka |
3 (3) | 2 (3) | ||||||||||||||||||||||||||||||||||||||||
Retired members |
||||||||||||||||||||||||||||||||||||||||||
Vindi Banga |
3 (3) | 4 (5) | 3 (3) | 3 (3) | 3 (3) | |||||||||||||||||||||||||||||||||||||
Dame Vivienne Cox |
3 (3) | 1 (1) | 3 (3) | |||||||||||||||||||||||||||||||||||||||
Lynn Elsenhans |
3 (3) | 2 (3) | 1 (1) | 3 (3) | 3 (3) | |||||||||||||||||||||||||||||||||||||
Dr Laurie Glimcher |
5 (5) | 2 (2) | 5 (5) | |||||||||||||||||||||||||||||||||||||||
Number of additional meetings |
5 |
– |
1 |
3 |
1 |
4 |
3 |
|||||||||||||||||||||||||||||||||||
The numbers in brackets denote the number of meetings which these individuals were eligible to attend. See Board and committee changes during 2022 on page 123. Details of committee members’ skills and experience are included in their biographies under ‘The Board’ on pages 97 to 100. |
109 |
Areas of focus in 2022 | ||||
Demerger and listing of Haleon |
The Board’s preparation for the demerger as a value-based process included: | |||
– | discussing strategy and plans for Consumer Healthcare for the period up to and beyond its separation as Haleon | |||
– | receiving regular performance reports | |||
– | scrutinising and overseeing the Consumer Healthcare Capital Markets Day approach and materials | |||
– | supporting appointments to the Haleon Board, including the transition of Vindi Banga and Dame Vivienne Cox to Haleon | |||
– | scrutinising and responding to an unsolicited proposal for the Consumer Healthcare business in advance of the demerger | |||
– | approving the GSK Shareholder Circular recommending the demerger and overseeing the Haleon Prospectus | |||
– | approval of the demerger and subsequent GSK share consolidation | |||
Build GSK as a pure biopharma business |
The Board’s oversight of the creation of GSK as a pure biopharma business and delivery of a step-change in performance included: | |||
– | regularly discussing and scrutinising transformation plans for GSK | |||
– | scutinising updates on R&D strategy, progress and progression of the company’s pipeline | |||
– | requesting the Remuneration Committee renew the Remuneration policy’s focus to incentivise overdelivery and reward a new performance culture | |||
– | Board and management succession planning, including approval of the appointment of a new Chief Scientific Officer, the transition of Dr Hal Barron to Non-Executive Director, and the appointment of two new independent Non-Executive Directors and a new Chief Financial Officer | |||
– | approval of Charles Bancroft as successor to Vindi Banga in the role of Senior Independent Director | |||
– | approval of a change in approach to workforce engagement | |||
Ahead Together – further strengthening the fundamentals of value creation |
The Board’s oversight of the fundamentals of commercial execution, cost base management, capital allocation, pipeline and culture included: | |||
– | setting and approving the Board’s 2022-24 priorities | |||
– | receiving regular progress updates and providing input into the company’s Vaccines mRNA strategy and plan | |||
– | receiving and discussing commercial strategy performance reports from Pharmaceuticals, Vaccines and ViiV Healthcare | |||
– | receiving updates on R&D strategy and pipeline progress | |||
– | approving business development transactions, acquisitions and strategic partnerships with third parties including: Sierra Oncology, Affinivax, Mersana Therapeutics, Spero Therapeutics, Wave Life Sciences and Tempus | |||
– | receiving quarterly reports from the CEO, CFO and CSO | |||
– | scrutinising the Group’s financial performance | |||
– | setting the company’s new name, purpose and simplified culture, through a new Code of Conduct | |||
Enhancing ESG leadership |
The Board’s oversight of our new culture and embedding ESG at our core: | |||
– | approving and supporting the new GSK culture | |||
– | approving the Responsible Business section of the Annual Report | |||
– | approving the Task Force on Climate-related Financial Disclosures section in the Annual Report | |||
– | final approval of our Pricing and Access Policy principles | |||
– | overseeing GSK’s overall response to the situation in Ukraine | |||
Regular corporate governance oversight |
The Board’s programme of governance included: | |||
– | reviewing the quarterly financial results, dividend proposals, earnings guidance, investor materials, results announcements and receiving reports from the external auditor | |||
– | approving the final 2021 Annual Report and Form 20-F | |||
– | setting the annual budget, and the forward-looking three-year plan | |||
– | conducting an annual review of the Board’s enterprise risk responsibility framework and enterprise-wide risks | |||
– | undertaking an annual Board evaluation and implementing its agreed outcomes | |||
– | reviewing and continuing to evolve the Board’s governance architecture | |||
– | evaluating the CEO’s 2021 performance, and setting her 2022 objectives | |||
– | reviewing the talent and succession plans annually | |||
– | receiving reports on Board committee work | |||
– | engaging with GSK’s stakeholders and the wider workforce to gather and understand their views on the company’s activities and operation | |||
– | reviewing the employee PULSE survey results | |||
– | receiving reports on wider corporate governance and regulatory developments, and the Company Secretary’s report | |||
– | approving the company’s modern slavery statement and gender pay gap positioning | |||
– | reviewing stakeholder perception research |
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GSK Annual Report 2022 |
– | Overall review of the Board |
– | Board organisation, agenda and information |
– | Board dynamics, challenge and input |
– | Future strategy development |
– | Performance delivery |
– | The key area of focus for the Board should continue to be R&D (organic and inorganic). Meeting the pipeline goals, and therefore delivering shareholder value, is seen by all as the top priority |
– | The importance of the Science Committee in working with the CSO to help optimise the pipeline |
– | Supporting the onboarding of the new CFO, Julie Brown |
– | Board succession planning would be progressed to ensure a broad range of diverse candidates for consideration as successor for the Remuneration Committee Chair |
– | The importance of optimising concise feedback by Committee Chairs to the full Board following each committee meeting |
– | Following agreement of the overall Board priorities and the Board agenda, Committee Chairs agreed to review the main areas of responsibility for their committees in line with the Board priorities and incorporate them into their committee programmes for 2023 |
– | In particular, the importance of the Science Committee in supporting organic and inorganic R&D and evolving the ways in which the committee works with the CSO and his team |
111 |
– | delivering the separation of Haleon from GSK with a strong focus on shareholder value (the Demerger) and |
– | building GSK as a pure biopharma company that is ambitious for patients, accountable for impact and does the right thing (new GSK) |
(a) Long-term results |
||||
The likely consequences of any decision in the long term At the end of May 2022, the Board assessed the company’s readiness to proceed with the Demerger and approved the GSK Circular and agreed the Haleon Prospectus to be sent to shareholders as the final stage of the Demerger. The Board exercised its Section 172 duties by reviewing the work of management and the Audit & Risk, Corporate Responsibility, Remuneration and Transformation & Separation committees in progressing the separation since mid-2020. This included;– extensive consultations held with the key stakeholders, and sharing the long-term growth ambitions at the investor events for GSK in June 2021 and Haleon in February 2022 – considering and rejecting the unsolicited, conditional and non-binding proposals received to acquire the Consumer Healthcare businessIn recommending these proposals to create two independent companies to most effectively serve their patients and customers respectively, the Board firmly believed that its decision would establish: |
– a newly independent global leader in consumer health with a focused strategy to drive penetration growth across its portfolio, capitalising on new and emerging growth opportunities, underpinned by strong execution and financial discipline. Haleon, as an independent company, would be able to deliver sustainable above-market growth, moderate sustainable adjusted operating margin expansion in the medium term with attractive returns to shareholders – new GSK, a pure biopharmaceuticals company with a portfolio focused on Vaccines, Specialty Medicines and General Medicines with clearly defined financial ambitions, a clear ambition to deliver large-scale and long-term positive human health impact and a strong balance sheet enabling a growth-oriented capital allocation policy and attractive shareholder returns The Board believed that the Demerger would unlock the potential of both businesses, strengthen the balance sheet of new GSK and its ability to invest in growth and maximise long-term return for shareholders. Shareholders duly approved the two resolutions proposed at the General Meeting held on 6 July 2022 and the Demerger was then effected on 18 July 2022. |
112 |
GSK Annual Report 2022 |
(b) Our workforce |
||||||||
The interests of the Group’s employees The Board had continual regard to the interests of our people who were either remaining with new GSK or departing to form Haleon. It achieved this by using various employee voice mechanisms described on pages 10, 11 and 115 to help explain the future shape of these companies, understand and assess the impact of these changes on the organisation and how they were being experienced by our people. Significant focus was dedicated in bringing to life new GSK’s Ahead Together purpose, strategy and culture for our people across the Group. A strong emphasis has been given to individual ownership of our new culture. This was formally launched in June 2022 with events held around the company’s locations globally. |
These were attended by GLT members and Non-Executive Board members including the Chair.In 2022, in addition to our annual bonus and long-term incentive structure, the Board also gave a special thank you to all our people (excluding GLT), allowing us to recognise what we had achieved together in preparation for the Demerger and the transformation of the company into a pure biopharma company. As a result, everyone received a one-off payment equivalent to a week’s salary in March, separate to our 2021 bonus pay-out. We also ensured that the treatment of awards or options held by GSK employees, and for departing Haleon employees, delivered a fair outcome in accordance with the rules of those share schemes as part of the Demerger and the GSK share consolidation. |
|||||||
(c) Our business relationships |
||||||||
The importance of developing the Group’s business relationships with suppliers, customers and others A key imperative for the Board of GSK as a responsible business is to ensure the company develops and monitors these partnerships to ultimately serve patients. The benefits of these relationships and how they can support the achievement of our ambitions are described in the pages of our strategic report, for example: – achieving our Ahead Together ambition to positively impact the health of 2.5 billion people by the end of 2030, requires the development of vaccines and medicines and making them available through responsible pricing, strategic access programmes and partnerships |
– ethical behaviour is promoted across our business by supporting our people to do the right thing and working with suppliers that share our standards and operate in a responsible way. Our new Code of Conduct seeks to set out expectations in this regard – our third parties are expected to meet our ABAC and labour rights standards and to comply with our standards on quality, health and safety, and the environment. Approximately 29% of our total emissions footprint comes from the goods and services that we buy. In September 2022, in support of our net zero carbon impact on climate ambition, we launched our Sustainable Procurement Programme. This will require our suppliers to, among other things, disclose emissions, set carbon reduction targets, and switch to renewable power and heat |
|||||||
(d) The community and the environment |
||||||||
The impact of the Group’s operations on the community and our environment Our approach to making a positive impact has been guided by extensive stakeholder engagement on the key issues relevant to new GSK and, prior to the demerger, Haleon’s respective industries and the nature of the companies themselves. The Board has sought to achieve this by: – in preparation for the Demerger, working with Haleon’s management team in developing its own distinctive responsible business approach and ESG framework bespoke to the needs of its customers and the communities it serves. This also involved scrutinising this framework and the proposed targets, including environmental sustainability targets. These were presented at Haleon’s investor update in February 2022 |
– establishing the six areas of ESG focus for new GSK as a global biopharma company that are fundamental to our DNA and success. These six areas, detailed on pages 42 to 50, directly contribute to long-term shareholder value by contributing to our health impact, supporting thriving people and reducing risk. The environment is one of our principal ESG focus areas. In 2022, an environmental scorecard measure was introduced into our long-term incentive plans to incentivise and reward progress on delivering against our net zero impact on climate and net positive impact on nature public ambitions by 2030 The Board has also been focused on new GSK’s Ahead Together ambition to impact the lives of 2.5 billion patients over the next ten years. Human capital is key to GSK and as such we are seeking to strengthen early STEM education investments to further support a long-term diverse talent pool and increase the positive impact of volunteering activities within the communities in which we serve. |
|||||||
113 |
(e) Our reputation |
||||||
Our desire to maintain our reputation for high standards of business conduct This duty guided the Board’s approach to the Demerger and the creation of new GSK. This was achieved by: – the transformation of the company, initially launched in early 2020. This included fundamentally reviewing our structure, cost base, ways of working and the effectiveness of both our biopharma and consumer healthcare businesses and implementing targeted enhancements in advance of the Demerger – choosing the optimal form of separation through a Demerger with the same listing location and structure for Haleon as GSK. As a result, Haleon should operate to the same premium listed, legal and corporate governance standards, in an environment with common business and ethical values to GSK – extensive legal and financial due diligence and engagement with key regulators, investors and other key stakeholders, which was undertaken in preparing the GSK Circular, the Haleon Prospectus and the Haleon 20-F |
– reaching an agreement with the trustees of the GSK UK Pension Schemes on a package of measures (including funding and protections) in relation to the Demerger and the GSK UK Pension Schemes’ triennial actuarial valuations – ensuring that GSK remained as one company in how we operated until the point of Demerger, with the overriding emphasis on driving top-line growth and improving margin– implementing plans for the six areas of ESG focus for new GSK, outlined to investors in June 2021 to help retain and develop further GSK’s reputation for ESG leadership and responsible business conduct – developing a distinctive and holistic responsible business case and ESG framework for Haleon which was outlined to investors in February 2022. This supported Haleon’s purpose, strategy and culture as a premium UK listed company, with a focus on the key responsible business issues – ensuring that the Board and our people in new GSK commit annually to our new Code of Conduct introduced in June 2022. This Code sets out our Board endorsed Ahead Together purpose and culture, as well as the performance commitments our people make so we can all deliver on the company’s ambitions in the right way |
|||||
(f) Fairness between our shareholders |
||||||
Our aim to act fairly as between members of the Group |
– each shareholder receiving a pro-rated shareholding in Haleon after the Demerger, with the receipt of one Haleon share for each GSK share held. Additionally, all Haleon shares from the inception of the Demerger had equal rights to participate in capital, dividend and profit distributions by Haleon– the GSK Share Consolidation achieved consistency in the GSK share price pre- and post-Demerger to enable comparability between the new GSK earnings per share and share price with previous periods. It also preserved, as far as reasonably possible, the value of share options and awards granted to our people after the Demerger |
|||||
It was of fundamental importance that the Board was able to ensure that shareholders were treated fairly up to, on and after the Demerger. This was demonstrated by: – deciding on the most appropriate capital structures required for the two companies to be competitive, on which stock exchanges Haleon should list, and whether, and to what extent, to distribute shares in Haleon to GSK’s shareholders and retain any stake in Haleon – each shareholder having a right to vote on a one vote for one share basis at the General Meeting for the Demerger and the new GSK share consolidation, and related party transactions resolutions. To ensure that as many shareholders as possible could participate in the meeting, shareholders were able to ask questions and vote either electronically or in person. Voting majorities in excess of 99% were recorded for each resolution |
114 |
GSK Annual Report 2022 |
– | the CEO’s Board Report |
– | a specific External Stakeholders’ Report. This provides strategic insights based on an analysis of key developments, achievements and risks impacting our reputation and the perceptions of all our external stakeholders |
– | a regular Investor Relations Report which summarises investor perceptions |
– | regular Board updates from our Chief People Officer and the CEO on culture and talent |
– | feedback from a range of pulse surveys of varying sizes of employee groups to help check sentiment and culture more quickly and frequently and provide valuable insights on the impact of major initiatives, events or communications |
– | direct engagement by the Board. Prior to the demerger, our designated Workforce Engagement Director, Dame Vivienne Cox, had a specific mandate to connect with our people |
– | Consumer Healthcare employees in April 2022 prior to their transfer to Haleon and |
– | Digital and Tech employees in June 2022 that were helping to ensure a strong and secure technology platform for both companies |
– | a return to direct in-person receptions with local employees, following COVID-19 restrictions during Board site visits. During the second half of 2022 these included: Stevenage, UK (as one of our two global R&D hubs), Boston, US, and our Global HQ in Brentford |
– | the Chair undertaking a range of site visits, including: Raleigh Durham, US, to meet with our ViiV employees, King’s Cross, London where he met with our Artificial Intelligence and Machine Learning team, as well as our Respiratory supply chain employees based in Ware, UK and Aranda, Spain |
– | the Chair and Corporate Responsibility Committee Chair meeting with leaders of our employee resource groups (ERGs) to discuss how they experience GSK as well as hearing their views on progress with our diversity, equity and inclusion (DEI) agenda and ambitions |
– | utilising a variety of bespoke engagements that have enabled a broad and open dialogue and facilitated first hand engagement discussions between the NEDs and our people individually and as part of small groups, encompassing perspectives on our strategy, purpose and Ahead Together culture, and DEI |
115 |
– | the execution of a clear plan for separation of Haleon from GSK with strong focus on shareholder value creation |
– | the creation of two attractive and viable businesses with compelling investment propositions |
– | building two highly-qualified Boards to complement the world class management teams |
– | re-architecting the GSK Board |
– | supporting the Haleon Board build |
– | the approval of a new binding Remuneration policy aligned to delivery of GSK’s public growth and ESG commitments announced at the Investor Update in June 2021 and |
– | continuous engagement with shareholders and other stakeholders |
116 |
GSK Annual Report 2022 |
– | how do we as a company and Committee know how we are performing across our ESG focus areas? |
– | can we challenge ourselves to further improve our performance? |
– | how we can best report to our key stakeholders on what we have done and the level of impact we have made? |
– | the impact value of GSK’s innovation in terms of economic benefit |
– | health equity within and between countries |
– | the importance of the supply network for access and |
– | that the Principles are sufficiently flexible to evolve over time and are subject to regular review |
117 |
– | Pipeline reviews: |
– | Scientific deep-dives: |
– | Business development: |
118 |
GSK Annual Report 2022 |
– | FDA approval of Boostrix |
– | FDA approval of Menveo |
– | FDA approval of Priorix |
– | Phase 1 Pipeline review |
– | RNA based therapeutics and vaccines |
– | Oncology |
119 |
– | delivering the demerger of Haleon from the Group as a key Board governance workstream and |
– | creating two attractive and viable businesses with compelling investment propositions, directed and overseen by highly capable boards |
– | supporting the shaping and creation of the Haleon Board; and |
– | restructuring the GSK Board with a new focus and expertise for a pure biopharma business |
120 |
GSK Annual Report 2022 |
– | Luke Miels, Chief Commercial Officer, assumed full accountability for strategic commercial product development of vaccines, alongside his current accountabilities for strategic product development in Specialty and General Medicines and the commercial performance of the GSK portfolio in markets |
– | Regis Simard, President Global Supply Chain, assumed accountability for both Vaccines and Medicines supply |
– | Deborah Waterhouse, Chief Executive Officer ViiV Healthcare, assumed overall accountability for GSK Global Health |
– | Roger Connor, President of Vaccines and Global Health, left GSK to progress a new role in healthcare, outside biopharma |
121 |
1 | Target female representation on Board is 40%. Data from GSK Annual Report published in the first quarter of each year. Current female representation is 27.2% at the date of publication. This is expected to rise to 36% in May 2023 post-CFO succession |
Board and GLT gender diversity |
||||||||
Diversity objective |
Status |
Performance |
||||||
At least 40% of Board positions held by women | Below objective | 27.2% | ||||||
At least one woman either in the Chair, SID role on the Board and/or one | Met objective | One Director (CEO) | ||||||
woman in the Chief Executive Officer or Finance Director role by the end of 2025 | ||||||||
At least 40% of GLT positions held by women | Met objective | 41.7% | ||||||
At least one Board Director is ethnically diverse | Exceed objective | Two Directors | ||||||
122 |
GSK Annual Report 2022 |
Director/GLT member |
Membership/Role |
Appointment date |
Retirement date | |||
Elizabeth McKee Anderson | Audit & Risk and Remuneration committees | 1 September | ||||
Dr Hal Barron | Science Committee (following transition to role of Non-Executive Director) |
1 August | ||||
Charles Bancroft | Science Committee | 8 February (stepped down after Dr Hal Dietz joined the Committee) | ||||
Senior Independent Director | 18 July | |||||
Remuneration Committee | 18 July | |||||
Vindi Banga | Audit & Risk, Nominations & Corporate Governance and Remuneration committees | 18 July | ||||
Senior Independent Director | ||||||
Dr Anne Beal | Corporate Responsibility Committee Chair | 4 May | ||||
Nominations & Corporate Governance and Remuneration committees | 18 July | |||||
Audit & Risk Committee | 25 October | |||||
Dame Vivienne Cox | Corporate Responsibility and Remuneration committees | 18 July | ||||
Dr Hal Dietz | Science Committee | 1 January | ||||
Science Committee Chair | 1 January 2023 | |||||
Lynn Elsenhans | Corporate Responsibility Committee Chair | 4 May | ||||
Audit & Risk, Corporate Responsibility and Nominations & Corporate Governance committees | 18 July | |||||
Dr Jesse Goodman | Science Committee Chair | 31 December | ||||
Dr Laurie Glimcher | Audit & Risk and Science committees | 10 October | ||||
Urs Rohner | Audit & Risk Committee | 18 July | ||||
Dr Vishal Sikka | Corporate Responsibility Committee | 18 July | ||||
Roger Connor | President, Global Vaccines | 1 December | ||||
Dr Tony Wood | Chief Scientific Officer and GLT member | 1 August | ||||
123 |
– | Korn Ferry: general recruitment, executive search and assessment services, coaching and other HR-related services |
– | Egon Zehnder: executive search, assessment and coaching services to specific senior executives |
– | Heidrick & Struggles: executive search services |
– | recommended to the Board approval of the planned separation of our Consumer Healthcare business in July 2022, based on the Committee’s awareness and review of the transaction and Haleon’s operational readiness, and the approval of final issuance of public documents and entry into associated legal agreements |
– | exercised oversight for the Zantac |
– | conducted a robust review process, together with the CFO, to select and appoint a replacement to the current lead audit partner, who under the five-year audit partner rotation rules, rotates off after the publication of this Annual Report. Further details are set out on page 128 |
124 |
GSK Annual Report 2022 |
125 |
126 |
GSK Annual Report 2022 |
Significant issues considered by the Committee in relation to the financial statements |
How the issue was addressed by the Committee | |
Going concern basis for the preparation of the financial statements |
The Committee considered the outcome of management’s half-yearly and year-end reviews of current and forecast net debt positions and the various financing facilities and options available to the Group. The Committee also considered management’s review of the impacts of the current economic environment and climate change impacts. Following consideration of these assessments, which included stress testing and viability scenarios, sources of liquidity and funding, forecasts and estimates, the Committee confirmed that the application of the going concern basis for the preparation of the financial statements continued to be appropriate. | |
Revenue recognition, including returns and rebates (RAR) accruals |
The Committee reviewed management’s approach to the timing of recognition of revenue and accruals for customer returns and rebates. The RAR accrual for US Commercial Operations was £5.9 billion at 31 December 2022 and the Committee reviewed the basis on which the accrual had been made and concurred with management’s judgements on the amounts involved. A fuller description of the process operated in US Commercial Operations in determining the level of accrual necessary is set out in ‘Critical accounting policies’ on pages 94 and 95. | |
Provisions for legal matters, including investigations into the Group’s commercial practices |
The Committee received detailed reports on actual and potential litigation from both internal and external legal counsel including the Zantac | |
Provisions for uncertain tax positions |
The Committee considered current tax disputes and areas of potential risk and concurred with management’s judgement on the levels of tax contingencies required. At 31 December 2022, a tax payable liability of £0.6 billion, including provisions for uncertain tax positions, was recognised on the Group’s balance sheet. | |
Impairments of intangible assets |
The Committee reviewed management’s process for reviewing and testing goodwill and other intangible assets for potential impairment. The Committee accepted management’s judgements on the intangible assets that required writing down and the resulting impairment charge of £402 million in 2022. See Note 20 to the financial statements, ‘Other intangible assets’ for more details. | |
Valuation of contingent consideration in relation to ViiV Healthcare |
The Committee considered management’s judgement that it was necessary to increase the liability to pay contingent consideration primarily as a result of updated exchange rate assumptions as well as increases in sales forecasts and the unwind of the discount. After cash payments of nearly £1.1 billion in the year, at 31 December 2022, the Groups’ balance sheet included a contingent consideration liability of £5.9 billion in relation to ViiV Healthcare. See Note 33 to the financial statements, ‘Contingent consideration liabilities’ for more details. | |
ViiV Healthcare put option |
The Committee reviewed and agreed the accounting for the Pfizer put option and concurred with management’s judgement on the valuation of the put option of £1.1 billion at 31 December 2022. | |
Consumer Healthcare demerger |
The Committee reviewed management’s process for presenting Consumer Healthcare as a discontinued operation and the subsequent demerger accounting. The gain on the demerger of £10.1 billion included significant values relating to the fair value of assets distributed and ownership in Haleon retained, the net assets and non-controlling interest distributed/de-recognised and the cumulative foreign exchange recycled. See Note 41 ‘Acquisitions and Disposals’ to the financial statements for more details. |
127 |
– | the overall quality of the audit |
– | the independence of Deloitte |
– | whether Deloitte exhibited an appropriate level of challenge and scepticism in its work |
– | effectiveness of the auditor’s challenge |
– | integrity of Deloitte |
– | transparency of its reporting to management and the Committee |
– | clarity of the auditor’s communications and ways of working |
– | alignment of the 2021 audit to the Group’s investment in Systems, Applications and Products (SAP) |
– | quality of the audit team’s leadership and |
– | skills and experience of the audit team |
– | auditor’s independence, qualifications, objectivity, expertise and resources |
External auditor appointment |
||
Last tender | May – December 2016 | |
Transition year | 2017 | |
First shareholder approval of current auditor | May 2018 | |
First audited Annual Report and 20-F |
Year ending 31 December 2018 | |
New lead audit engagement partner | 2023 | |
Next audit tender required by regulations | 2026 (to take effect from 2028) |
128 |
GSK Annual Report 2022 |
Process: |
All non-audit services over £50,000 are put to competitive tender with other financial services providers, in line with the Group’s procurement process, unless the skills and experience of the external auditor make it the only suitable supplier. | |||
Safeguards: |
Adequate safeguards are established so that the objectivity and independence of the Group audit are not threatened or compromised. | |||
Fee cap: |
The total fee payable for non-audit services should not exceed 50% of the annual audit fee, except in special circumstances where there would be a clear advantage in the auditor undertaking the additional work. | |||
Prohibitions: |
GSK’s policy includes a ‘whitelist’ of permitted non-audit services in line with the relevant regulations. Any service not on this list is prohibited. | |||
Pre-approval: |
All non-audit services require pre-approval as set out in the table below to ensure services approved are consistent with GSK’s non-audit policy for permissible services. This process ensures all services fall within the scope of services permitted and pre-approved by the Committee and does not represent a delegation of authority for pre-approval. | |||
Value More than £50,000 Between £25,000 and £50,000 Under £25,000 |
Pre-approver Committee Chair and CFO Group Financial Controller Designate of the Group Financial Controller |
129 |
– | becomes bankrupt |
– | ceases to be a Director by virtue of the Companies Act or the Articles |
– | suffers mental or physical ill health and the Board resolves that he or she shall cease to be a Director |
– | has missed Directors’ meetings for a continuous period of six months without permission and the Board resolves that he or she shall cease to be a Director |
– | is prohibited from being a Director by law |
– | resigns, or offers to resign and the Board accepts that offer |
– | is required to resign by the Board |
130 |
GSK Annual Report 2022 |
Content of the Directors’ report | ||
For the purposes of the UK Companies Act 2006, the Directors’ report of GSK plc for the year ended 31 December 2022 comprises: | ||
Directors’ report |
||
Section |
Pages | |
Corporate governance report | 96 to 131 | |
Employee engagement | 115 | |
Directors’ statements of responsibilities | 166 and 167 | |
Investor information | 273 to 314 | |
The strategic report sets out those matters required to be disclosed in the Directors’ report which are considered to be of strategic importance: | ||
Strategic report |
||
Section |
Pages | |
Risk management objectives and policies | 51 to 64 and 285 to 295 | |
Likely future developments of the company | 1 to 95 | |
Research and development activities | 15 to 28 | |
Business relationships | 49 and 50 | |
Diversity | 47 | |
Provision of information to and consultations with employees | 10, 11 and 47 | |
Carbon emissions | 45 and 46 | |
Section 172 statement | 112 to 114 and throughout 10 to 63 |
Location in Annual Report | ||
Interest capitalised | Financial statements, Notes 17 and 20 | |
Publication of unaudited financial information | Group financial review, page 65 | |
Details of any long-term incentive schemes | Remuneration report | |
Waiver of emoluments by a Director | Not applicable | |
Waiver of future emoluments by a Director | Not applicable | |
Non pre-emptive issues of equity for cash |
Not applicable | |
Non pre-emptive issues of equity for cash by any unlisted major subsidiary undertaking |
Not applicable | |
Parent company participation in a placing by a listed subsidiary | Not applicable | |
Provision of services by a controlling shareholder | Not applicable | |
Shareholder waiver of dividends | Financial statements, Notes 16 and 45 | |
Shareholder waiver of future dividends | Financial statements, Notes 16 and 44 | |
Agreements with controlling shareholders | Not applicable |
– | has been drawn up and presented in accordance with and in reliance upon English company law and the liabilities of the Directors in connection with that Report shall be subject to the limitations and restrictions provided by such law. |
– | was approved by the Board of Directors on 9 March 2023 and signed on its behalf by: |
131 |
In this section |
||||
133 |
||||
136 |
||||
158 |
GSK Annual Report 2022 |
2022 Remuneration policy engagement | ||||||||
Details of the extensive consultation by the Committee and company Chairs regarding the 2022 Remuneration policy prior to the 2022 AGM vote and continuing engagement with shareholders afterwards, are set out below. | ||||||||
Engagement events |
Dates |
Investor participation |
Share capital represented | |||||
Initial individual consultation meetings | October to | 5 of the largest | 12% | |||||
November 2021 | 15 shareholders | |||||||
2021 Annual Governance Meeting: | invitations | November 2021 | 60 investors | 50% | ||||
attendance | December 2021 | 13 investors | 15% | |||||
Follow-up letter after Annual Governance Meeting to non-attendees, setting out |
January to February | 30 investors | 35% | |||||
proposed Remuneration policy asking for input via meeting with the Remuneration | 2022 | |||||||
Committee and company Chairs | ||||||||
Letter circulated advising how feedback was incorporated into the final Remuneration | March 2022 | 40 investors | 45% | |||||
policy to be submitted to the 2022 Annual General Meeting for binding approval | ||||||||
Meetings held with shareholders prior to AGM | January to April 2022 | 11 investors | 16% | |||||
2022 Annual Governance Meeting: | invitations | November 2022 | 60 investors | 50% | ||||
attendance | December 2022 | 14 investors | 25% | |||||
Meetings held after the AGM to the publication of this Annual Report | May 2022 to February 2023 | 20 meetings | 35% | |||||
The principal proxy advisory firms were also consulted throughout the Remuneration policy process. This included invitations to the Annual Governance Meeting, receipt of engagement letters and meetings with the company and Remuneration Committee Chairs. |
133 |
134 |
GSK Annual Report 2022 |
– | new global minimum standards for parental leave and for care of a family member |
– | review of medical and insured benefits with a focus on equity for same sex couples wherever legally possible and |
– | new financial education support |
Consideration of potential windfall gains The Committee is aware of the guidance from investor bodies around considering a potential executive benefit arising from share award grants around the time of the stock market fall at the onset of the COVID-19 pandemic in March 2020.Our Remuneration Policy contains sufficient flexibility to reduce the vesting of awards if required. However, the Committee determined that no reduction is required in respect of the awards granted in March 2020. In making this determination, the Committee considered the share price at the following points: – The share price at the time of the February 2020 award of £16.81 – The share price over the final quarter of 2022 of £13.99 – The share price at the time of the March 2019 award (grant previous to the 2020 award) of £15.09 Whilst there have been upward and downward movements in GSK’s share price over the period, taking these above points into consideration the Committee was satisfied that there was no risk of windfall gains. |
135 |
Dr Hal Barron, former CSO | ||||||||||||||||||||
Emma Walmsley, CEO |
Iain Mackay, CFO |
(to 31 July 2022) (2) | ||||||||||||||||||
2022 |
2021 |
2022 |
2021 |
2022 |
2021 | |||||||||||||||
£000 |
£000 |
£000 |
£000 |
$000 |
$000 | |||||||||||||||
Fixed pay |
||||||||||||||||||||
Salary |
1,260 |
1,223 | 915 |
889 | 1,332 |
1,883 | ||||||||||||||
Benefits |
131 |
134 | 291 |
242 | 107 |
145 | ||||||||||||||
Pension |
253 |
245 | 183 |
178 | 190 |
651 | ||||||||||||||
Total fixed pay |
1,644 |
1,602 | 1,389 |
1,309 | 1,629 |
2,679 | ||||||||||||||
Pay for performance |
||||||||||||||||||||
Annual bonus (1) |
3,143 |
2,275 | 2,082 |
1,573 | 1,177 |
3,483 | ||||||||||||||
Vesting of PSP LTI awards (3) (4) |
3,666 |
4,326 | 1,854 |
2,408 | 4,381 |
6,371 | ||||||||||||||
Total pay for performance (5) |
6,809 |
6,601 | 3,936 |
3,981 | 5,558 |
9,854 | ||||||||||||||
Total remuneration |
£8,453 |
£8,203 | £5,325 |
£5,290 | $7,187 |
$12,533 |
Notes: | ||
(1) | The mandatory Deferred Annual Bonus Plan (DABP) bonus deferrals for 2022 and 2023 are set out on page 154. The payment shown for Dr Barron represents a pro-rated on-target payment in respect of 1 January 2022 to 31 July 2022, in lieu of an Annual Bonus opportunity. | |
(2) | Dr Barron transitioned from his role as CSO to Non-Executive Director on 1 August 2022. Salary above includes the basic salary earned for his time as CSO from 1 January to 31 July 2022 plus payment in lieu of accrued holiday not taken, in accordance with GSK’s standard all employee US holiday pay policy. His Non-Executive Director fees earned from 1 August to 31 December 2022 were $177,107. Please see page 153 for further details. | |
(3) | The PSP vesting figure for the CEO is inclusive of a top-up award (25% of salary) made in May 2020 following the vote in favour of the Remuneration policy at the company’s 2020 AGM. This award will not vest until May 2023 and the final actual value received for the 2020-22 PSP will be restated in the 2023 Annual Report. | |
(4) | The 2020 PSP was valued based on the vesting prices on 10 February 2023 of £14.78 and the ADS price of $35.727. The share and ADS prices on 14 February 2020, the main date of grant were £16.686 and $43.74. In respect of the top-up award for the CEO, the share price was £16.814. Of the vested amounts for the Executive Directors, nothing was attributable to share price appreciation over the performance period. The Committee did not exercise any discretion in relation to the vesting of the awards or share price changes. The value for Dr Hal Barron is illustrative as the award will not vest until August 2023 in accordance with the terms of the Executive and Senior Management Recoupment Policy. The actual value received will be restated in the 2023 Annual Report. | |
(5) | The Committee may in specific circumstances, and in line with stated principles, apply malus/clawback, as it determines appropriate. Following due consideration by the Committee, there has been no recovery of sums paid (clawback) or reduction of outstanding awards or vesting levels (malus) applied during 2022 in respect of any of the CEO, CFO or the former CSO. |
136 |
GSK Annual Report 2022 |
2022 effective date |
||||||||||
2022 % change |
Salary | |||||||||
2022 |
2021 | |||||||||
UK & US employees |
1 April | 3% | – | – | ||||||
Emma Walmsley |
£1,259,855 |
£1,223,160 | ||||||||
Iain Mackay |
1 January | 3% | £915,335 |
£888,675 | ||||||
Dr Hal Barron (1) |
$2,026,549 |
$1,967,523 |
(1) | With effect from 1 August 2022, Dr Barron transitioned to a Non-Executive Director role and has not received a salary since that date. He receives Non-Executive Director fees as described on page 153. Dr Barron’s 2021 base salary was increased by 8% from $1,821,781 to $1,967,523 with effect from 1 August 2021. See page 126 of the 2021 Annual Report for further details. |
– | Employee benefits |
– | Business-related services |
2022 Benefits |
2021 Benefits |
|||||||
£000 |
£000 |
|||||||
Emma Walmsley |
||||||||
Benefits available to employees |
66 |
71 | ||||||
Business-related services |
65 |
63 | ||||||
Total benefits |
131 |
134 | ||||||
Iain Mackay |
||||||||
Benefits available to employees |
156 |
131 | ||||||
Business-related services |
135 |
111 | ||||||
Total benefits |
291 |
242 | ||||||
Dr Hal Barron |
$000 |
$000 |
||||||
Benefits available to employees |
71 |
83 | ||||||
Business-related services |
36 |
64 | ||||||
Accommodation whilst on business travel (1) |
— |
(2 | ) | |||||
Total benefits |
107 |
145 |
Notes: |
(1) 2021 represents one-off refund of accommodation costs relating to 2020. |
137 |
Executive Director |
Member since |
Pension arrangements in 2022 | ||
Emma Walmsley |
2010 | Pension contributions of 20% of base salary and matching contributions of up to 5% on the first | ||
Iain Mackay |
2019 | £13,333 of salary, with a cash payment of 20% of base salary in lieu of pension on salary in excess of £13,333 in line with plan rates. | ||
Dr Hal Barron |
2018-July 2022 | Member of the 401(k) plan open to all US employees and the Executive Supplemental Savings Plan (ESSP), a savings scheme open to US executives to accrue benefits above the 401(k) plan limits. | ||
He received 38% of base salary, less a contribution to the 401(k) and ESSP equivalent to 5% of total base salary and bonus (net of the bonus deferred under the DABP). In addition, in line with the wider US workforce, from 1 January 2021, a combined contribution rate under the 401(k) and ESSP plans of 11% (7% core contribution plus a match of up to 4%) of total base salary and bonus (net of the bonus deferred under the DABP). |
Emma Walmsley |
Iain Mackay |
Dr Hal Barron |
||||||||||||||||||||||||||
2022 |
2021 |
2022 |
2021 |
Jan-Jul 2022 |
2021 |
|||||||||||||||||||||||
Pension remuneration values |
£000 |
£000 |
£000 |
£000 |
$000 |
$000 |
||||||||||||||||||||||
UK defined contribution |
3 |
3 | 3 |
3 | – |
– | ||||||||||||||||||||||
US defined benefit |
– |
– | – |
– | (134 |
) |
350 | |||||||||||||||||||||
Employer cash contributions |
250 |
242 | 180 |
175 | 324 |
301 | ||||||||||||||||||||||
Total pension remuneration value |
253 |
245 | 183 |
178 | 190 |
651 |
Accrued pension |
Pension remuneration | |||||||
31 July 2022 |
31 December 2021 |
value for 2022 | ||||||
Dr Hal Barron pension values |
$000 |
$000 |
$000 | |||||
US – Funded |
2 | 2 | (6) | |||||
US – Unfunded |
194 | 187 | (128) | |||||
Total |
196 | 189 | (134) |
138 |
GSK Annual Report 2022 |
2022 Bonus opportunity |
2022 Bonus outcome |
|||||||||||||||||||||||||||||||||||
Adjusted |
Strategic and |
|||||||||||||||||||||||||||||||||||
Total sales |
operating |
operational |
Total 2022 |
|||||||||||||||||||||||||||||||||
Target |
Maximum |
2022 |
growth |
profit growth |
measures |
ESG |
bonus |
Total 2022 |
||||||||||||||||||||||||||||
Bonus |
(% of salary) |
(% of salary) |
salary |
(% of salary) |
(% of salary) |
(% of salary) |
(% of salary) |
(% of salary) |
bonus |
|||||||||||||||||||||||||||
Emma Walmsley |
100 |
300 |
£ | 1,259,855 | 71 |
79 |
90 |
10 |
249.5 |
£ |
3,143,340 |
|||||||||||||||||||||||||
Iain Mackay |
£915,335 | 78 |
0 |
227.5 |
£ |
2,082,390 |
2022 Performance | ||||||||
Target |
Target |
Outcome |
Positioning | |||||
weighting |
growth rate |
growth rate |
achieved | |||||
Total sales growth |
30% | 6.5% |
9.9% |
+3.4% | ||||
Adjusted operating profit growth |
30% | 12.8% |
16.8% |
+3.9% |
Overview of performance against financial performance measures |
– | 2022 saw a step-change in commercial execution; earnings guidance was updated during the year as momentum grew. This was driven by strong sales growth across Specialty Medicines and Vaccines, exceeding guidance for sales and operating profit |
– | Delivered full-year reported Group sales of £29.3 billion (+19% AER, +13% CER) with Specialty growth of 37% AER, 29% CER with double-digit growth across all Specialty therapy areas and Vaccines growth of 17% AER, 11% with a record year for Shingrix COVID-19 solutions |
– | Adjusted Group operating profit of £8,151 million above target, driven by higher sales supported by prioritised investment and effective cost control. The outcome was adjusted to exclude the commercial benefit from COVID-19 solutions |
– | Adjusted EPS of 139.7p (+27% AER, +15% CER) was ahead of guidance excluding COVID-19 solutions |
139 |
Strategic and operational measures |
Performance achieved | |||
Emma Walmsley The Committee determined that the CEO clearly exceeded or met her individual objectives | ||||
Strengthen pipeline and build GSK’s reputation for Innovation |
– | 47 potential new medicines and 22 vaccine candidates in development, with 18 now in phase 3/registration. Two-thirds of pipeline now focused on infectious diseases | ||
– | Significant progress to strengthen pipeline and advance key assets (including RSV OA vaccine, bepirovirsen, gepotidican, daprodustat and depemokimab) more than offset termination decisions on otilimab and RSV maternal | |||
– | Continued progress in development of long-acting HIV treatments including launch of Apretude | |||
– | Successful business development to support future growth and focus in Vaccines and Specialty Medicines including Affinivax, Sierra Oncology and Spero Therapeutics | |||
Demonstrate continued commercial execution excellence |
– | Step-change in commercial execution, with double-digit sales growth across Specialty Medicines and Vaccines | ||
– | 10 products now exceeding £1 billion in annual sales, including Trelegy Nucala Benlysta Dovato | |||
– | Strong momentum for Shingrix | |||
Complete separation and unlocked value |
– | Haleon successfully demerged on schedule from GSK on 18 July 2022. Largest demerger in Europe for 20 years | ||
– | Meaningful progress in value recognition prior to impact of market uncertainty following Zantac | |||
Demonstrate strong Environmental, Social and Governance (ESG) credentials and build trust in future delivery |
– | Sustained leading ESG performance, with delivery against Global Health, Environment and Inclusion and Diversity commitments | ||
– | Maintained sector-leading rankings in key ESG indices. Ranked number 1 in Access to Medicines Index for the 8th consecutive time and 2nd in S&P Corporate Sustainability Assessment for the pharmaceutical industry | |||
Demonstrate strong culture and leadership |
– | Drove rapid ownership of new culture; launch and roll out of new internal GSK Code, Talent Management and Performance with Choice programmes | ||
– | Employee engagement up to 81% (versus 78% in 2021) | |||
– | Continued development and succession planning for leadership team, with Tony Wood appointed CSO and new Chief Financial Officer Designate appointed | |||
Iain Mackay The Committee determined that the CFO successfully met his individual objectives | ||||
Demonstrate financial leadership |
– | Group financial targets exceeded: total sales £29.3 billion (+19% AER, +13% CER, +10% excl COVID); adjusted operating margin 27.8%; adjusted operating profit growth +26% AER, +14% CER, +17% excl COVID | ||
– | Adjusted EPS 139.7p (+15% CER) | |||
Cost discipline and cash flow management |
– | Prioritised investment and cost discipline supported strong growth in operating profit and EPS. | ||
– | Transformation programme delivering £0.9 billion annual savings by end 2022, on track to deliver £1 billion by end 2023 | |||
– | Cash generated from operations £7.9 billion and free cash flow of £3.3 billion | |||
Complete separation and unlocked value |
– | Haleon successfully demerged on schedule from GSK on 18 July 2022. Largest demerger in Europe for 20 years | ||
– | Meaningful progress in value recognition prior to impact of market uncertainty following Zantac | |||
Demonstrate strong culture and leadership |
– | Finance and Tech engagement, confidence, culture and inclusivity employee survey scores all increased versus 2021 | ||
140 |
GSK Annual Report 2022 |
Outcome and vesting level |
||||||||||||||||||||||||||||||
Performance measures |
% of |
% of |
||||||||||||||||||||||||||||
and relative weighting |
Performance targets |
Outcome |
maximum |
award |
||||||||||||||||||||||||||
Pipeline progress (20%) |
The pipeline progress measure targets rewarding strengthening of our pipeline through progression of high quality assets into pivotal trials and the achievement of regulatory approvals in major markets. Points based on achievement are allocated to these two equally weighted elements. | |||||||||||||||||||||||||||||
LTI award |
Threshold |
Maximum |
16.5 points |
88% |
13.8% |
|||||||||||||||||||||||||
Measure |
% |
25% |
50% |
75% |
100% |
19 points |
50% |
|||||||||||||||||||||||
Pivotal Trial starts |
10 | 13 points | 14 points | 15 points | 18 points | |||||||||||||||||||||||||
Major regulatory |
10 | 18 points | 19 points | 20 points | 22 points | |||||||||||||||||||||||||
approval milestones |
||||||||||||||||||||||||||||||
Innovation sales (20%) |
The innovation sales measure recognises the importance of launching new products successfully and that driving their performance is key to our commercial success. This measure aggregates three-year sales for new innovative products launched in the three-year performance period and the preceding two years, ie 2018-22. |
£15.368 billion | 41% | 8.2% | ||||||||||||||||||||||||||
Innovation sales (billion) |
% vesting |
|||||||||||||||||||||||||||||
Maximum |
£18.132 | 100% | ||||||||||||||||||||||||||||
£16.484 | 75% | |||||||||||||||||||||||||||||
£15.660 | 50% | |||||||||||||||||||||||||||||
Threshold |
£14.836 | 25% | ||||||||||||||||||||||||||||
<£14.836 | 0% | |||||||||||||||||||||||||||||
Adjusted free cash flow (AFCF) performance (30%) |
In line with the company’s agreed principles, the AFCF figures included adjustments for a number of material distorting items, including legal settlements, exchange rate movements and special pension contributions. | £13.08 billion | 100% | 30% | ||||||||||||||||||||||||||
Original target (billion) |
Revised target (billion) (1) |
% vesting |
||||||||||||||||||||||||||||
Maximum |
£11.84 | £10.47 | 100% | |||||||||||||||||||||||||||
£11.33 | £10.01 | 75% | ||||||||||||||||||||||||||||
£10.30 | £9.10 | 50% | ||||||||||||||||||||||||||||
Threshold |
£9.99 | £8.83 | 25% | |||||||||||||||||||||||||||
<£9.99 | <£8.83 | 0% | ||||||||||||||||||||||||||||
(1) The revised target has been further adjusted since the 2021 Annual Report as noted overleaf. |
||||||||||||||||||||||||||||||
Relative TSR |
TSR ranking within comparator group (2) |
% vesting |
Ranked 9th |
0% |
0% |
|||||||||||||||||||||||||
performance |
Maximum |
1st, 2nd, 3rd | 100% | |||||||||||||||||||||||||||
(30%) |
4th | 70% | ||||||||||||||||||||||||||||
5th | 40% | |||||||||||||||||||||||||||||
Threshold (3) |
Median | 25% | ||||||||||||||||||||||||||||
6th to 10th | 0% | |||||||||||||||||||||||||||||
(2) TSR comparator group: AstraZeneca, Bristol-Myers Squibb, Eli Lilly, GSK, Johnson & Johnson, Merck & Co, Novartis, Pfizer, Roche Holdings and Sanofi. |
||||||||||||||||||||||||||||||
(3) The vesting schedule is based on delivering 25% vesting for median performance. In a comparator group of ten companies, median falls between two companies. |
||||||||||||||||||||||||||||||
Total vesting in respect of 2020 awards |
52% |
141 |
Granted |
Vested (1) |
Value of vested shares (1) | ||||||||
Emma Walmsley (2) |
410,090 | 248,018 | £3,666,163 | |||||||
Iain Mackay |
207,267 | 125,432 | £1,854,116 | |||||||
Dr Hal Barron – Pro-rated (3) |
203,981 | 122,634 | $4,381,400 |
(1) | The vested number of shares and the value it represented at vesting includes dividend reinvestments during the performance period. These are based on the vesting price of £14.78 and the closing ADS price of $35.727 on 10 February 2023. |
(2) | The shares granted for Emma Walmsley include the additional ‘top-up’ award made in May 2020 which will not vest until May 2023. The final actual value received and any amount attributable to share price appreciation over the performance period will be restated in the 2023 Annual Report. |
(3) | The PSP award for Dr Hal Barron will not vest until August 2023 under the terms of the Executive & Senior Manager Financial Recoupment Policy. |
– | Actual vesting levels will only be determined based on performance over the full three-year performance periods. The indications below should therefore not be regarded as predictions of the final vesting levels |
– | The AFCF measure target, threshold and associated vesting scales for the 2021 awards have been adjusted. The net overall impact is a decrease in the target of £3.02 billion to £5.64 billion for the 2021 award |
– | The adjustments took into account of the following items: the removal of the share of target cash flows relating to Consumer Healthcare in 2022 and 2023 following the demerger in 2022, revised phasing of the Future Ready programme restructuring cash payments, and revised timing of divestments |
– | There were no changes to other measures |
142 |
GSK Annual Report 2022 |
2022 DABP awards |
2022 PSP awards |
|||||||||||||||||||||||||||
2021 % of total bonus deferred |
Number of shares |
Face value of award (1) |
Award level as % of base salary |
Number of shares |
Face value of award (2)(3) |
|||||||||||||||||||||||
Emma Walmsley |
72,399 shares |
£1.138m | 575% | 461,059 shares |
£7.2m | |||||||||||||||||||||||
Iain Mackay |
50% | 50,056 shares |
£0.786m | 400% | 233,028 shares |
£3.7m | ||||||||||||||||||||||
Dr Hal Barron (4) |
40,617 ADS |
$1.741m | – | – |
– |
(1) | The face values of the DABP awards have been calculated based on a share price of £15.712 and an ADS price of $42.87, being the closing prices on 14 February 2022 (the day before grant). These are nil-cost options for the UK Executive Directors and restricted shares for the US Executive Director. No performance conditions are attached to the DABP awards, as they reflect the mandatory three-year deferrals in respect of the Annual Bonus for 2021. |
(2) | The face values of the PSP awards have been calculated based on a share price of £15.712, being the closing price on 14 February 2022 (the day before grant). These are conditional shares, based on the performance measures outlined above. Dr Barron did not receive a 2022 PSP award given his transition to a Non-Executive Director role on 1 August 2022. |
(3) | The performance period for the 2022 PSP awards is from 1 January 2022 to 31 December 2024. Awards vest at 25% of maximum for threshold performance. |
(4) | Dr Barron’s DABP award will vest as normal three years after the date it was granted. |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
|||||||||||||||||||||||||||||||
Relative TSR |
0 | 0 | 0 | 0 | 15 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||
Adjusted free cash flow |
13 | 0 | 0 | 0 | 21 | 26 | 33 | 33 | 33 | 30 | ||||||||||||||||||||||||||||||
Innovation sales (previously R&D new product) |
16 | 7 | 21 | 33 | 33 | 33 | 33 | 33 | 25 | 8.2 | ||||||||||||||||||||||||||||||
Pipeline progress |
13.8 | |||||||||||||||||||||||||||||||||||||||
Business diversification |
11 | 7 | 17 | |||||||||||||||||||||||||||||||||||||
Total vested % |
40 | 14 | 38 | 33 | 69 | 59 | 67 | 67 | 58 | 52 |
143 |
Element |
Wider workforce pay |
Comparison with Executive Director and GLT pay | ||
Salary |
– The market competitiveness of base salaries across the company is assessed at a local market level. The competitiveness of roles, which is measured against the external market and internal peers, is kept under regular review – Increases may also be made to reflect a change in scope of an individual’s role, responsibilities or experience |
– For our Executive Directors and the GLT, following a performance review, increases in base salaries are considered in line with market practice, the average increase for the wider employee population and other comparotor tools. – Increases may also be made to reflect a change in scope of an individual’s role, responsibilities or experience – In agreeing increases for Executive Directors and the GLT, the Committee is mindful of the multiplier effect on the individual’s total remuneration | ||
Pensions and benefits |
– The company seeks to provide an appropriate pension and benefits package that is aligned to competitive market practices in those countries in which the company operates and where our employees are based |
– Our Executive Directors and the GLT are eligible to receive benefits broadly in line with the policy for other employees, which may vary by location – Pension arrangements are structured in accordance with where the Executive Director or GLT member is expected to retire. Current and future Executive Directors’ pension arrangements have been aligned to the wider workforce in their location since 1 January 2023 | ||
Annual Bonus |
– With the exception of our sales force, who participate in separate arrangements, our wider workforce participates in a plan based on performance against four business and financial measures. These are structured to reflect the priorities of each specific business area – This plan is designed to reward our employees’ collective contribution to business achievement. Separate mechanisms are in place to recognise outstanding individual performance or to address under-performance |
– Our Executive Directors and the GLT participate in a plan based on an assessment of a combination of stretching financial/business, ESG: DEI and personal objectives – For Executive Directors, any bonus up to 200% of salary is paid 50% in cash and 50% in shares deferred for three years. Any bonus earned in excess of this (up to a maximum of 300% of salary) would be delivered fully in shares deferred for three years – For GLT members, any bonus up to 170% of salary is paid 75% in cash and 25% in shares deferred for three years. Any bonus earned in excess of this (up to a maximum of 255% of salary) would be delivered fully in shares deferred for three years – Clawback and/or malus provisions apply | ||
LTI plans |
– Our employees at Senior Vice President (SVP) and Vice President (VP) level participate in the same PSP as our Executive Directors and the GLT with the same performance targets and periods – Clawback and/or malus provisions apply – Our SVP and VP employees, together with Directors and Managers below the GLT, receive annual Share Value Plan awards of restricted shares |
– Our Executive Directors and the GLT are granted annual PSP awards with the same performance targets and periods as employees – Executive Directors are required to hold vested awards for an additional two-year period– Clawback and/or malus provisions apply – Executive Directors and the GLT do not receive Share Value Plan awards following appointment |
144 |
GSK Annual Report 2022 |
Financial year |
Lower quartile P25 |
Median P50 |
Upper quartile P75 | |||
2022 |
144:1 | 106:1 | 67:1 | |||
2021 |
154:1 | 108:1 | 67:1 | |||
2020 |
130:1 | 96:1 | 62:1 | |||
2019 |
160:1 | 119:1 | 73:1 |
2022 |
2021 |
2020 |
2019 |
2022 |
2021 |
2020 |
2019 |
2022 |
2021 |
2020 |
2019 | |||||||||||||
£ |
P25 |
P50 |
P75 |
|||||||||||||||||||||
Salary |
37,776 |
37,251 |
36,924 |
34,510 |
52,107 |
51,492 |
50,000 |
47,029 |
74,905 |
72,997 |
70,203 |
66,561 | ||||||||||||
Total pay and benefits |
58,883 |
53,151 |
54,133 |
50,467 |
79,428 |
76,234 |
73,340 |
68,200 |
126,594 |
122,852 |
113,830 |
110,638 |
Option A Methodology | ||||||
Financial year |
P25 |
P50 |
P75 | |||
2022 |
81:1 | 60:1 | 40:1 | |||
2021 |
73:1 | 51:1 | 34:1 | |||
2020 |
51:1 | 38:1 | 26:1 | |||
2019 |
65:1 | 48:1 | 32:1 |
Change % |
2022 £m |
2021 £m |
||||||||||
Total employee pay |
0.2 | 7,693 |
7,680 | |||||||||
Dividends paid in the year |
(13.3) | 3,467 |
3,999 |
145 |
European cross-industry comparator group | ||||
Roche Holding AG | Linde | Deutsche Telekom | ||
Novartis | Sanofi | Kering | ||
LVMH | AstraZeneca | Heineken | ||
Anheuser-Busch InBev | Diageo | BASF | ||
Unilever | Siemens | Vinci | ||
SAP | Christian Dior | Adidas | ||
L’Oreal | Inditex | Bayer | ||
Novo Nordisk A/S | BAT | Safran | ||
Airbus | Volkswagen | Reckitt Benckiser | ||
Global pharmaceutical comparator group |
||||
France Sanofi Switzerland Novartis Roche Holdings UK AstraZeneca |
US AbbVie (1) Amgen (1) Bristol-Myers Squibb Eli Lilly Johnson & Johnson Merck & Co Pfizer |
(1) | AbbVie and Amgen are included for remuneration benchmarking, but are not included in the relative TSR comparator group. |
* | This index comprises AstraZeneca, Bristol-Myers Squibb, Eli Lilly, Johnson & Johnson, Merck & Co, Novartis, Pfizer, Roche Holdings and Sanofi. |
Emma Walmsley |
£000 | |||||||||||||||||||||
2022 |
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||
Total remuneration |
8,453 |
8,203 | 7,031 | 8,094 | 5,887 | 4,883 (1) | ||||||||||||||||
% of maximum |
||||||||||||||||||||||
Annual Bonus award (2) |
83% |
93% | 49% | 79% | 93% | 77% | ||||||||||||||||
Vesting of LTI awards |
52% |
58% | 67% | 67% | 59% | 69% | ||||||||||||||||
Sir Andrew Witty |
£000 | |||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||||
Total remuneration |
715 (2) |
6,830 | 6,661 | 3,902 | 7,207 | |||||||||||||||||
% of maximum |
||||||||||||||||||||||
Annual Bonus award (2) |
0% (2) |
97% | 100% | 42% | 88% | |||||||||||||||||
Vesting of LTI awards |
0% (3) |
33% | 38% | 14% | 31% |
(1) | Emma Walmsley’s total remuneration includes her pay for the period 1 January to 31 March 2017, before she became CEO. |
(2) | Sir Andrew Witty received a pro-rata payment for 2017 in lieu of a variable bonus opportunity, in accordance with the 2014 Remuneration policy. |
(3) | PSP and DABP awards for Sir Andrew Witty granted in 2015 did not vest until April 2018, in accordance with the terms of the Executive financial recoupment policy. |
146 |
GSK Annual Report 2022 |
Base salary |
2023 |
% change |
||||||
Wider workforce (1) |
– | 5% | ||||||
Emma Walmsley |
£1,310,249 | 4% | ||||||
Iain Mackay (2) |
£915,335 | 0% |
(1) | Based on the average increase budget for employees below the level of GLT in the UK. |
(2) | As a known leaver on 31 December 2023, Mr Mackay is not eligible to receive a salary increase. |
2023 Pension contribution | ||
Emma Walmsley Iain Mackay |
– 7% of base salary contribution to defined contribution plan and a further 3% in matched contributions on the first £26,666 of salary in accordance with the terms of the plan and – 7% of base salary as a cash payment in lieu of pension contribution on salary in excess of £26,666, or – 7% of base salary as a cash payment in lieu of pension contribution |
Bonus opportunity % of salary |
||||||||
Target |
Maximum (1) |
|||||||
Emma Walmsley |
100 | 300 | ||||||
Iain Mackay |
(1) | 50% of the equivalent of the first 200% of salary is deferred, and any portion in excess of 200% is deferred in full. |
Weighting of performance measures % |
||||||||||||||||
Total sales growth |
Adjusted operating profit growth |
Strategic and operational measures |
ESG: diversity, equity and inclusion |
|||||||||||||
Emma Walmsley |
30 | 30 | 30 | 10 | ||||||||||||
Iain Mackay |
Total bonus deferred |
DABP awards |
|||||||
into shares % |
Shares |
|||||||
Emma Walmsley |
59.9 | 125,482 | ||||||
Iain Mackay |
56.0 | 77,751 |
% of salary |
Shares |
|||||||
Emma Walmsley |
575 | 501,927 |
LTI measure |
Measure |
Weighting |
||||
Innovation |
Pipeline progress | 20% | ||||
Performance |
Relative TSR | 30% | ||||
Total sales growth | 20% | |||||
Adjusted operating profit growth | 20% | |||||
Trust |
ESG: environment | 10% |
147 |
Performance level |
Points |
Payout |
||||||
Below Threshold |
<12 | Nil | ||||||
Threshold |
12 | 25% | ||||||
14 | 50% | |||||||
16 | 75% | |||||||
Maximum |
20 | 100% |
Performance level |
Points |
Payout |
||||||
Below Threshold |
<17 | Nil | ||||||
Threshold |
17 | 25% | ||||||
19 | 50% | |||||||
20 | 75% | |||||||
Maximum |
22 | 100% |
– | 3x Climate ambitions |
– | 3x Nature ambitions |
– | 75% vesting, all six measures must have met their 2025 targets |
– | 100% vesting, two of the six measures, at least one in Climate and one in Nature, must have exceeded their 2025 targets |
Value of holdings as % of salary |
||||||||||||||||
SOR % of salary |
3 March 2023 |
31 December 2022 |
||||||||||||||
Emma Walmsley |
650 | 1,292 | 1,031 | |||||||||||||
Iain Mackay |
300 | 406 | 228 |
148 |
GSK Annual Report 2022 |
Remuneration element |
Summary of treatment | |
Annual Bonus | Eligible to receive bonuses which will be determined by the Committee based on a combination of business and individual performance for his service during 2022 and 2023. | |
PSP | Not eligible to receive any further PSP awards. | |
Outstanding PSP and DABP awards | All existing LTI awards will be retained and PSP awards will be pro-rated for time. | |
DABP deferred bonus awards | Awards in respect of bonuses deferred in 2022 and prior years will vest at their normal vesting dates. |
Remuneration element |
Notes | |||
Salary | £951,948 | Ms Brown’s salary was preliminarily set in line with that of her predecessor in September 2022 (£915,335) and her salary upon joining will be 4% higher than this figure, in line with the increase agreed for the CEO. The comparator group for pay for the CFO remains the European cross-industry comparator group as set out on page 146. | ||
Annual Bonus | £951,948 | The on-target bonus would be 100%, with a maximum of 300% for incremental exceptional performance as for Mr Mackay. | ||
Award of Long Term Incentives (LTIs) |
£1,903,896 | This assumes an expected value of 50% of an award of performance shares under the PSP at a 4x multiple of base salary as for Mr Mackay. | ||
Share Ownership Requirement (SOR) |
300% of salary | This is in line with the 2022 Remuneration policy. | ||
Pension | Pension arrangements will be in line with those of the wider UK workforce in accordance with GSK’s commitment from 1 January 2023. | |||
Benefits | Benefits will be in line with GSK’s policy and arrangements for other executives to support them in undertaking their role. |
– | a sum (the Bonus Buyout) equivalent to Ms Brown’s on-target Burberry bonus for the period from 1 April 2022 to 31 March 2023, which she will forego on leaving Burberry |
– | a sum (the LTI Buyout) equivalent to the aggregate value of (i) her outstanding Burberry LTIs and SIP shares, which will be lost on leaving Burberry, at a price equivalent to the average price of such shares for the one-month period ended on 7 September 2022, and (ii) the value of any dividend equivalents accruing on those shares between their date of award and her departure from Burberry. Given that the Burberry LTIs are not subject to a performance measure, and only to a performance underpin, no discount will be applied to the value of the shares so calculated |
– | the Bonus Buyout and one-third of 85% of the LTI Buyout will be paid to her in the first payroll following the commencement of her employment with GSK |
– | one-third of 85% of the LTI Buyout will be paid to her in the first payroll following the first anniversary of the commencement of her employment and |
– | one-third of 85% of the LTI Buyout will be paid to her in the first payroll following the second anniversary of the commencement of her employment |
149 |
Total votes cast (billion) |
Total votes for (%) |
Total votes against (%) |
Votes withheld (million) |
|||||||||||||
2022 AGM |
||||||||||||||||
Remuneration report |
3.6 | 91.05 | 8.95 | 12.3 | ||||||||||||
Remuneration policy |
3.6 | 61.76 | 38.24 | 13.3 |
Date of contract |
Effective date |
Expiry date | ||||
Emma Walmsley |
29.03.17 | 01.04.17 | 30.06.34 | |||
Iain Mackay |
18.09.18 | 14.01.19 | n/a | |||
Julie Brown |
25.09.22 | 01.05.23 | n/a |
150 |
GSK Annual Report 2022 |
Committee focus during 2022 |
Items discussed | |||
Remuneration policy The Committee sets the Remuneration policy for shareholder approval and then determines the remuneration of the Executive Directors, the Chair and other corporate officers in line with that policy. |
– Prepared and agreed the proposed 2022 Remuneration policy – Remuneration impact of Consumer Healthcare demerger – Shareholder and advisory body engagement on new Remuneration policy. See page 133 for further details – Review and consideration of shareholder and proxy adviser feedback – Amendments to the proposed Remuneration policy following careful consideration of shareholder feedback – Continued engagement with shareholders | |||
Salary review The Committee periodically reviews and considers the remuneration environment for Executive Directors and GLT and approves, when appropriate, annual adjustments as necessary having regard to performance, market positioning and the remuneration of the wider workforce. |
– Executive Director and GLT benchmarking, competitiveness and GSK comparator groups – GLT and Company Secretary salary review and recommendations for 2022 – Executive Director salary review and recommendations for 2023 – Setting remuneration for Julie Brown, the new CFO – Review of company Chair’s fee | |||
Annual Bonus The Committee is responsible for setting specific performance measures for the Annual Bonus and for assessments of performance against these measures. |
– CEO, Executive Directors and GLT 2021 bonus recommendations and 2022 CEO and Executive Directors’ bonus objectives – Proposed new Annual Bonus performance measures aligned with June 2021 Investor Update commitments | |||
LTI plans The Committee is responsible for approving LTI plan rule changes, grants, assessments of performance, and the vesting of LTI awards for the Executive Directors, GLT and below (including interim awards). |
– LTI performance outcomes and award vesting for the CEO, Executive Directors, GLT and below – Confirmation of LTI grants for the CEO, Executive Directors, GLT and below – Proposed new performance conditions aligned with June 2021 Investor Update commitments | |||
Governance and other areas of focus The Committee adheres to a robust remuneration governance framework, ensuring alignment between internal actions and external reporting/compliance requirements. |
– Remuneration considerations and Committee programme for 2022 – Review of Terms of Reference – Committee evaluation annual review – 2021 Remuneration report – Confirmation of 2022 Group Budget for remuneration purposes – AGM and Remuneration report feedback, the external remuneration environment and performance target disclosure for incentive plans – 2022 Remuneration report disclosures, including CEO pay ratio – Annual Governance Meeting key Committee messages – Committee Chair consultation with employee representatives on setting pay and wider workforce pay practices – Remuneration adviser tender process |
151 |
Per annum |
||||
Standard annual fee |
£95,000 | |||
Supplemental fees |
||||
Chair of the Audit & Risk Committee |
£80,000 | |||
Senior Independent Director |
£50,000 | |||
Scientific & Medical Experts |
£30,000 | |||
Chairs of the Remuneration, Corporate Responsibility and Science committees and Workforce Engagement Director |
£40,000 | |||
Science Committee members undertaking significant additional responsibilities on behalf of GSK to support R&D |
Up to £200,000 | |||
Non-Executive Director undertaking intercontinental travel to meetings |
£7,500 per meeting |
152 |
GSK Annual Report 2022 |
2022 |
2021 |
|||||||||||||||||||||||||||||||||||
Non-Executive Directors’ |
Fixed fees |
Fixed fees |
||||||||||||||||||||||||||||||||||
emoluments (000) (audited) |
Cash |
Shares/ADS |
Benefits |
Total pay |
Cash |
Shares/ADS |
Benefits |
Total pay |
||||||||||||||||||||||||||||
Sir Jonathan Symonds |
£525 | £175 | £10 | £710 |
£525 | £175 | £3 | £703 | ||||||||||||||||||||||||||||
Elizabeth McKee Anderson |
$35 | $8 | – | $43 |
– | – | – | – | ||||||||||||||||||||||||||||
Charles Bancroft |
– | $287 | $10 | $297 |
– | $210 | $5 | $215 | ||||||||||||||||||||||||||||
Dr Hal Barron |
$150 | $16 | $11 | $177 |
– | – | – | – | ||||||||||||||||||||||||||||
Dr Anne Beal |
$138 | $46 | $15 | $199 |
$62 | $21 | – | $83 | ||||||||||||||||||||||||||||
Dr Hal Dietz |
$174 | $58 | $2 | $234 |
– | – | – | – | ||||||||||||||||||||||||||||
Dr Jesse Goodman |
$182 | $61 | $31 | $274 |
$164 | $55 | $23 | $242 | ||||||||||||||||||||||||||||
Urs Rohner |
£112 | £31 | £23 | £166 |
£101 | £34 | £11 | £146 | ||||||||||||||||||||||||||||
Dr Vishal Sikka |
– | $58 | – | $58 |
– | – | – | – | ||||||||||||||||||||||||||||
Retired Directors |
||||||||||||||||||||||||||||||||||||
Vindi Banga (1) |
£65 | £22 | £4 | £91 |
£109 | £36 | £1 | £146 | ||||||||||||||||||||||||||||
Dame Vivienne Cox (1) |
£55 | £18 | £1 | £74 |
£101 | £34 | £1 | £136 | ||||||||||||||||||||||||||||
Lynn Elsenhans (1) |
$74 | $25 | $23 | $122 |
$134 | $45 | $5 | $184 | ||||||||||||||||||||||||||||
Dr Laurie Glimcher (2) |
– | $136 | $20 | $156 |
– | $165 | $13 | $178 |
(1) | Retired from the Board on 18 July 2022. |
(2) | Retired from the Board on 13 October 2022. |
153 |
As at 31 December 2022 |
||||||||||||||||||||||||||||||
Unvested share plan interests |
||||||||||||||||||||||||||||||
Beneficial |
Subject to |
|||||||||||||||||||||||||||||
Total directors’ interests |
interests |
Not subject to performance |
performance |
|||||||||||||||||||||||||||
3 March 2023 (1) |
31 December 2022 (1) |
Shares/ADS (2) |
Shares/ADS (3,7) |
Options (4,7) |
Shares/ADS (5) |
|||||||||||||||||||||||||
Shares |
||||||||||||||||||||||||||||||
Emma Walmsley |
1,503,484 |
1,334,155 | 493,081 | 656,084 | 184,990 | 1,550,844 | ||||||||||||||||||||||||
Iain Mackay |
471,595 |
284,967 | – | 157,965 | 127,002 | 783,978 | ||||||||||||||||||||||||
ADS |
||||||||||||||||||||||||||||||
Dr Hal Barron |
552,499 |
547,374 | 306,004 | 241,370 | – | 348,459 |
1) | Total directors’ interests |
2) | Beneficial interests |
3) | Unvested shares/ADS not subject to performance two-year holding period. Unvested ADS not subject to performance for Dr Barron also represent bonus deferrals (as described in note 7 below). |
4) | Unvested options not subject to performance nil-cost options (as described in note 7 below). This figure excludes 790 options held by Emma Walmsley under the GSK Share Save plan. |
5) | Unvested shares/ADS subject to performance |
6) | Vested but unexercised options: |
7) | DABP: nil-cost options to Emma Walmsley and Iain Mackay. |
DABP (Bonus deferrals) |
3 March 2023 |
31 December 2022 |
1 January 2022 |
|||||||||
Shares |
||||||||||||
Emma Walmsley |
251,541 | 184,990 | 176,801 | |||||||||
Iain Mackay |
164,988 | 127,002 | 71,972 | |||||||||
ADS |
||||||||||||
Dr Hal Barron |
104,563 | 103,600 | 101,801 |
8) | Options exercised in 2022: nil-cost options under the DABP) exercised during 2022 by Executive Directors. Iain Mackay did not exercise any options during the year. |
Number of shares |
Date of |
Market price |
||||||||||||||||||||||
Type of award |
Date of grant |
under option |
exercise |
Grant price |
at exercise |
Gain on exercise |
||||||||||||||||||
Emma Walmsley |
||||||||||||||||||||||||
Deferral award – DABP |
13.02.2019 | 72,296 | 14.02.22 | £0.00 | £16.10 | £1,164,000 | ||||||||||||||||||
Share Save |
29.11.2018 | 744 | 25.02.22 | £12.09 | £15.82 | £2,775 |
154 |
GSK Annual Report 2022 |
Share allocation plan for Non-Executive Directors |
||||||||||||||||||||||||||||||||||||
Total directors’ interests as at (1) |
Number of shares/ADS |
|||||||||||||||||||||||||||||||||||
Beneficial |
||||||||||||||||||||||||||||||||||||
interests at |
||||||||||||||||||||||||||||||||||||
31 December |
31 December |
Dividends |
31 December |
Elected & |
||||||||||||||||||||||||||||||||
2022 |
2022 |
reinvested |
2022 or |
Adjustments |
allocated |
|||||||||||||||||||||||||||||||
3 March |
or date of |
or date of |
after |
date of |
for share |
during |
1 January |
|||||||||||||||||||||||||||||
2023 |
retirement |
retirement (2) |
year end |
retirement |
consolidation (4) |
the year (3) |
2022 |
|||||||||||||||||||||||||||||
Shares |
||||||||||||||||||||||||||||||||||||
Sir Jonathan Symonds |
69,045 |
68,316 |
33,925 | 728 | 34,391 | (8,598 | ) | 15,273 | 27,716 | |||||||||||||||||||||||||||
Vindi Banga (5) |
– |
93,391 |
57,440 | – | 35,951 | (8,987 | ) | 12,266 | 32,672 | |||||||||||||||||||||||||||
Dame Vivienne Cox (5) |
– |
12,252 |
– | – | 12,252 | (3,062 | ) | 4,767 | 10,547 | |||||||||||||||||||||||||||
Urs Rohner |
19,710 |
19,317 |
798 | 392 | 18,519 | (4,630 | ) | 6,722 | 16,427 | |||||||||||||||||||||||||||
ADS |
||||||||||||||||||||||||||||||||||||
Elizabeth McKee Anderson |
– |
– |
– | – | – | – | – | – | ||||||||||||||||||||||||||||
Charles Bancroft |
15,804 |
15,564 |
– | 240 | 15,564 | (2,617 | ) | 10,715 | 7,466 | |||||||||||||||||||||||||||
Dr Anne Beal |
1,800 |
1,777 |
– | 23 | 1,777 | (233 | ) | 1,507 | 503 | |||||||||||||||||||||||||||
Dr Hal Barron |
552,499 |
547,374 |
306,004 | – | – | – | – | – | ||||||||||||||||||||||||||||
Dr Hal Dietz |
1,593 |
1,575 |
– | 18 | 1,575 | (164 | ) | 1,739 | – | |||||||||||||||||||||||||||
Lynn Elsenhans (5) |
– |
47,692 |
800 | – | 46,892 | (11,722 | ) | 14,631 | 43,983 | |||||||||||||||||||||||||||
Dr Laurie Glimcher (6) |
– |
27,408 |
– | – | 27,408 | (6,430 | ) | 11,186 | 22,652 | |||||||||||||||||||||||||||
Dr Jesse Goodman |
12,614 |
12,375 |
– | 238 | 12,375 | (2,846 | ) | 4,999 | 10,222 | |||||||||||||||||||||||||||
Dr Vishal Sikka |
1,147 |
1,147 |
1,147 | – | – | – | – | – |
1) | Total directors’ interests |
2) | Beneficial interests |
3) | Notional shares/ADS allocated during the year |
4) | To align as closely as possible the treatment of Non-Executive Directors in respect of their NED plan allocations with those of shareholders on the demerger and share consolidation, NED plan allocations were adjusted as follows: (a) an amount equivalent to the value of the Haleon plc shares/ ADS attributable to the Non-Executive Directors’ notional holding of GSK plc shares/ADSs was reinvested so as to increase those notional allocations of GSK plc shares/ADS on 18 July 2022; and (b) all notional GSK share/ADS allocations in the NED plan, including allocations arising under (a), were consolidated at a ratio of four new notional GSK shares/ADS for every five notional GSK shares/ADS held as at 18 July 2022. |
5) | Vindi Banga, Dame Vivienne Cox and Lynn Elsenhans all retired from the Board on 18 July 2022. |
6) | Dr Laurie Glimcher retired from the Board on 13 October 2022. |
155 |
2022 percentage change |
2021 percentage change |
2020 percentage change |
||||||||||||||||||||||||||||||||||||||
Salary/fee % |
Benefits % |
Bonus % |
Salary/fee % |
Benefits % |
Bonus % |
Salary/fee % |
Benefits % |
Bonus % |
||||||||||||||||||||||||||||||||
UK employees (1) |
3.0 | 2.26 | 44.81 | 2.0 | 0.0 | 4.85 | 2.5 | 0.0 | 1.1 | |||||||||||||||||||||||||||||||
Executive Directors (2,3) |
||||||||||||||||||||||||||||||||||||||||
Emma Walmsley |
3.0 | (2.2 | ) | 38.2 | 2.0 | (5.0 | ) | 94.6 | 8.0 | (26.6 | ) | (33.4 | ) | |||||||||||||||||||||||||||
Iain Mackay |
3.0 | 20.2 | 32.4 | 2.0 | 56.1 | 94.2 | 5.6 | 11.5 | (31.6 | ) | ||||||||||||||||||||||||||||||
Dr Hal Barron (4) |
(29.2 | ) | (26.2 | ) | (66.2 | ) | 5.4 | 150.0 | 100.1 | 2.5 | (91.2 | ) | (34.9 | ) | ||||||||||||||||||||||||||
Non-Executive Directors(2,5,6) |
||||||||||||||||||||||||||||||||||||||||
Sir Jonathan Symonds |
0.0 | 233.3 | – | 0.0 | 50.0 | – | 201.7 | 0.0 | – | |||||||||||||||||||||||||||||||
Elizabeth McKee Anderson |
– | – | – | – | – | – | – | – | – | |||||||||||||||||||||||||||||||
Charles Bancroft |
36.7 | 100.0 | – | 156.1 | – | – | – | – | – | |||||||||||||||||||||||||||||||
Dr Hal Barron (4) |
– | – | – | – | – | – | – | – | – | |||||||||||||||||||||||||||||||
Dr Anne Beal |
121.7 | – | – | – | – | – | – | – | – | |||||||||||||||||||||||||||||||
Dr Hal Dietz |
– | – | – | – | – | – | – | – | – | |||||||||||||||||||||||||||||||
Dr Jesse Goodman |
11.0 | 34.8 | – | (5.6 | ) | 0.0 | – | (12.5 | ) | (65.2 | ) | – | ||||||||||||||||||||||||||||
Urs Rohner |
5.9 | 109.1 | – | (5.6 | ) | 175.0 | – | 16.3 | (69.2 | ) | – | |||||||||||||||||||||||||||||
Dr Vishal Sikka |
– | – | – | – | – | – | – | – | – | |||||||||||||||||||||||||||||||
Retired Non-Executive Directors(2,5,6) |
||||||||||||||||||||||||||||||||||||||||
Vindi Banga |
(40.0 | ) | 300.0 | – | (4.6 | ) | (50.0 | ) | – | 23.6 | (50.0 | ) | – | |||||||||||||||||||||||||||
Dame Vivienne Cox |
(45.9 | ) | 0.0 | – | (5.6 | ) | (50.0 | ) | – | 55.4 | (75.0 | ) | – | |||||||||||||||||||||||||||
Lynn Elsenhans |
(44.7 | ) | 360.0 | – | (7.3 | ) | (75.0 | ) | – | (12.3 | ) | (73.3 | ) | – | ||||||||||||||||||||||||||
Dr Laurie Glimcher |
(17.6 | ) | 53.8 | – | (8.3 | ) | (61.8 | ) | – | (18.2 | ) | (55.3 | ) | – |
(1) | This table is provided in accordance with Schedule 8 of The Companies (Directors’ Remuneration Policy and Directors’ Remuneration Report) Regulations 2019. The UK employee population was considered to be the most relevant comparison as it most closely reflects the economic environment encountered by the majority of the Executive Directors. |
(2) | Percentage changes have been calculated based on the 2022 Total remuneration table on page 136 for Executive Directors and the 2022 Total fees table on page 153 for Non-Executive Directors. Increases in benefits for Non-Executive Directors are due to increased travel costs following the return to in-person meetings post-COVID-19. |
(3) | Further information on Executive Directors’ salary and benefits can be found on page 137. |
(4) | Dr Hal Barron transitioned to a Non-Executive Director role on 1 August 2022. |
(5) | Fees of Non-Executive Directors include fees received as cash and in the form of shares or ADS under the terms of the NED plan. |
(6) | See page 123 for details of Non-Executive Director changes during the year. |
Remuneration for 2022 |
£ |
|||
Total compensation paid |
31,807,039 | |||
Aggregate decrease in accrued pension benefits (net of inflation) |
(19,550 | ) | ||
Aggregate payments to defined contribution schemes |
1,739,677 |
Awards |
Dividend reinvestment awards |
|||||||||||||||||
Awarded during 2022 |
Shares |
ADS |
Shares |
ADS |
||||||||||||||
Performance Share Plan |
1,973,531 | 52,484 | 317,026 | 32,823 | ||||||||||||||
Deferred Investment Awards (1,2) |
– | – | 17,352 | 419 | ||||||||||||||
Share Value Plan (2) |
16,380 | – | – | – |
1) | Notional shares and ADS. |
2) | Executive Directors are not eligible to receive Deferred Investment Awards or participate in the Share Value Plan. |
156 |
GSK Annual Report 2022 |
Interests at 3 March 2023 |
Shares |
ADS |
||||||
Owned |
2,533,721 | 409,464 | ||||||
Unexercised options |
3,160 | – | ||||||
Deferred Annual Bonus Plan |
842,660 | 118,293 | ||||||
Performance Share Plan |
7,084,743 | 617,307 | ||||||
Deferred Investment Awards (1,2) |
280,056 | 8,968 | ||||||
Share Value Plan (2) |
68,345 | 5,740 |
1) | Notional shares. |
2) | Executive Directors are not eligible to receive Deferred Investment Awards or participate in the Share Value Plan. |
157 |
Salary |
To provide a core reward for the role. Set at a level appropriate to secure and retain high calibre individuals needed to deliver the Group’s strategic priorities. |
Operation |
Opportunity | |
Individual’s role, experience, performance and independently sourced data for relevant comparator groups considered when determining salary levels. Salary increases typically take effect in the first quarter of each year. Salaries are normally paid in the currency of the Executive Director’s home country. |
There is no formal maximum limit and, ordinarily, salary increases will be broadly in line with the average increases for the wider GSK workforce. However, increases may be higher to reflect a change in the scope of the individual’s role, responsibilities or experience. Salary adjustments may also reflect wider market conditions in the geography in which the individual operates. Details of current salary levels are set out in the Annual report on remuneration. | |
Performance measures | ||
The overall performance of the individual is a key consideration when determining salary increases. |
Benefits |
Levels are set to recruit and retain high calibre individuals to execute the business strategy. |
158 |
GSK Annual Report 2022 |
Pension |
Pension arrangements provide a competitive level of retirement income. |
– | 20% of base salary contribution to defined contribution plan and further 5% in matched contributions subject to any relevant cap and in line with implementation principles for other members of the plan; and |
– | 20% of base salary as a cash payment in lieu of pension contribution for the portion above the relevant cap; |
or |
– | 20% of base salary as a cash payment in lieu of pension contribution. |
– | 7% of base salary contribution to defined contribution plan and further 3% in matched contributions subject to any relevant cap and in line with implementation principles for other members of the plan; and |
– | 7% of base salary as a cash payment in lieu of pension contribution for the portion above the relevant cap; |
or |
– | 7% of base salary as a cash payment in lieu of pension contribution. |
– | Supplemental Cash Balance pension plan, providing annual contribution of 38% of base salary, less 5% of total base salary and bonus (net of the bonus deferred under the DABP) (3). |
– | GSK 401(k) plan (1) and the ESSP(1) with core contributions of 7% of salary and bonus(2) and matched contributions of 4% of salary and bonus(2) . |
– | GSK 401(k) plan (1) and the ESSP(1) with core contributions of 7% of salary and bonus(2) and matched contributions of 4% of salary and bonus(2) . |
– | Eligible for appropriate equivalent arrangement not in excess of the US/UK arrangements. |
(1) |
In the event of any change to the plans operated in the US, a similar treatment would be provided under any successor arrangements introduced within the market |
(2) |
Less bonus deferred under the DABP |
(3) |
The 5% offset is equal to the contribution to the 401(k) and ESSP which was moved from the pension plans, in line with the wider US workforce, from 1 January 2021 |
Annual Bonus |
To incentivise and recognise execution of the business strategy on an annual basis. Rewards the achievement of stretching annual financial, strategic and operational measures. |
159 |
Performance Share Plan (PSP) |
To incentivise and recognise delivery of the longer term business priorities, financial growth and increases in shareholder value compared to other pharmaceutical companies. In addition, to provide alignment with shareholder interests, a retention element, to encourage long-term shareholding and discourage excessive risk taking. |
% of salary |
||||
CEO |
600 | |||
CFO |
400 | |||
Other Executive Directors |
500 |
160 |
GSK Annual Report 2022 |
Share Ownership Requirements No change |
||||||||
To align the interests of Executive Directors with those of shareholders, they are required to build and maintain significant holdings of shares in GSK over time. The requirements for each Executive Director are as follows: | As a minimum, Executive Directors are required to maintain 100% of their share ownership requirements to the end of the first year following retirement from the company and 50% to the end of the second year. | |||||||
% salary |
||||||||
CEO |
650 | |||||||
Other Executive Directors |
300 | |||||||
– | Salary and benefits (including pension) are tailored to the local market |
– | The Annual Bonus plan applies to the wider employee population and is based on business performance |
– | A combination of performance-related and restricted share plans apply to the wider employee population |
– | All-employee share plans are available to employees in the UK, including the HM Revenue & Customs approved UK Share Save and Share Reward plans |
161 |
Non-Executive Directors’ fees | ||||
Element |
Purpose and link to strategy |
Operation | ||
Chair’s fees |
To provide an inclusive flat rate fee that is competitive with those paid by other companies of equivalent size and complexity subject to the limits contained in GSK’s Articles of Association. | There is no formal maximum. However, fees are reviewed annually and set by reference to a review of the Chair’s performance and independently sourced market data. The Committee is responsible for evaluating and making recommendations to the Board on the fees payable to the Chair. The Chair does not participate in discussions in respect of their fees. | ||
Basic fees |
As above | There is no formal maximum. As with the Chair, fees are reviewed annually and set by reference to independently sourced data. The Chair and CEO are responsible for evaluating and making recommendations to the Board on the fees payable to the company’s Non-Executive Directors. | ||
Fee payment |
Alignment with shareholders | Fees are paid in cash. Non-Executive Directors (including the Chair) were required to invest at least 25% of their total net fees in shares or ADS of the company. The company has since replaced the 25% minimum investment requirement with a minimum share or ADS ownership requirement of at least one times the Non-Executive Director’s (or Chair’s) gross annual standard fees to be retained until their retirement from the Board. An administrative amendment to this section of the Remuneration policy is proposed for binding shareholder approval at the 2023 AGM as described on page 163. | ||
Supplemental fees |
To compensate Non-Executive Directors (other than the Chair) for taking on additional Board responsibilities or undertaking intercontinental travel. |
Additional fees for the Senior Independent Director, Committee Chairs, Scientific and Medical Experts, the Workforce Engagement Director role and intercontinental travel. The company has the authority to pay an additional fee, up to the equivalent of the Committee Chair supplement to a Non-Executive Director, should the company require significant additional time commitment in exceptional or unforeseen circumstances.The company has the authority to pay an additional fee of up to £200,000 to Non-Executive Directors (excluding the Chair) who are members of the Science Committee for undertaking additional responsibilities on behalf of GSK and to support R&D. | ||
Benefits |
To facilitate execution of responsibilities and duties required by the role. | Travel and subsistence costs for Non-Executive Directors are incurred in the normal course of business in relation to meetings on Board and Committee matters and other GSK-hosted events. For overseas-based Non-Executive Directors, this includes travel to meetings in the UK. In the event it is necessary for business purposes, whilst not normal practice, Non-Executive Directors may be accompanied by their spouse or partner to these meetings or events. The costs associated with the above are all met by the company and, in some instances, they are deemed to be taxable and therefore treated as benefits for the Non-Executive Director. |
Approach to recruitment remuneration |
Loss of office |
162 |
GSK Annual Report 2022 |
163 |
164 |
GSK Annual Report 2022 | ||||
Financial statements | ||||
In this section |
||||
166 |
||||
182 |
||||
186 |
||||
268 |
||||
165 |
– | select suitable accounting policies and then apply them consistently; |
– | make judgements and accounting estimates that are reasonable and prudent; |
– | state that the Group financial statements comply with IFRS, as issued by the IASB and in conformity with the requirements of the Companies Act 2006; |
– | state with regard to the parent company financial statements that applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the parent company financial statements; and |
– | prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Group and the parent company will continue in business. |
– | the Group financial statements, which have been prepared in accordance with IFRS, as issued by the IASB and in conformity with the requirements of Companies Act 2006, give a true and fair view of the assets, liabilities, financial position and profit of the Group; |
– | the Strategic report and risk sections of the Annual Report, which represent the management report, include a fair review of the development and performance of the business and the position of the company and the Group taken as a whole, together with a description of the principal risks and uncertainties that it faces; and |
– | the annual report and financial statement, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the company’s position and performance, business model and strategy. |
166 |
GSK Annual Report 2022 |
– | so far as he or she is aware, there is no relevant audit information of which the company’s auditor is unaware; and |
– | he or she has taken all the steps that he or she ought to have taken as a Director to make himself or herself aware of any relevant audit information and to establish that the company’s auditor is aware of that information. |
167 |
168 |
GSK Annual Report 2022 |
169 |
170 |
GSK Annual Report 2022 |
171 |
172 |
GSK Annual Report 2022 |
173 |
174 |
GSK Annual Report 2022 |
175 |
176 |
GSK Annual Report 2022 |
177 |
178 |
GSK Annual Report 2022 |
179 |
180 |
GSK Annual Report 2022 |
181 |
Notes |
2022 £m |
2021 (1) £m |
2020 (1) £m |
|||||||||||||
Turnover |
6 |
|||||||||||||||
Cost of sales |
( |
) |
( |
) |
( |
) | ||||||||||
Gross profit |
||||||||||||||||
Selling, general and administration |
( |
) |
( |
) |
( |
) | ||||||||||
Research and development |
( |
) |
( |
) |
( |
) | ||||||||||
Royalty income |
||||||||||||||||
Other operating (expense)/income |
7 |
( |
) |
( |
) |
|||||||||||
Operating profit |
8 |
|||||||||||||||
Finance income |
11 |
|||||||||||||||
Finance expense |
12 |
( |
) |
( |
) |
( |
) | |||||||||
Loss on disposal of interest in associates |
13 |
( |
) |
|||||||||||||
Share of after tax (loss)/profits of associates and joint ventures |
( |
) |
||||||||||||||
Profit before taxation |
||||||||||||||||
Taxation |
14 |
( |
) |
( |
) |
( |
) | |||||||||
Profit after taxation from continuing operations |
||||||||||||||||
Profit after taxation from discontinued operations and other gains/(losses) from the demerger |
||||||||||||||||
Re-measurement of discontinued operations distributed to shareholders on demerger |
||||||||||||||||
Profit after taxation from discontinued operations |
||||||||||||||||
Total profit after taxation for the year |
||||||||||||||||
Profit attributable to non-controlling interests from continuing operations |
||||||||||||||||
Profit attributable to shareholders from continuing operations |
||||||||||||||||
Profit attributable to non-controlling interests from discontinued operations |
||||||||||||||||
Profit attributable to shareholders from discontinued operations |
||||||||||||||||
Total profit attributable to non-controlling interests |
||||||||||||||||
Total profit attributable to shareholders |
||||||||||||||||
Basic earnings per share (pence) from continuing operations |
15 |
|||||||||||||||
Basic earnings per share (pence) from discontinued operations |
||||||||||||||||
Total Basic earnings per share (pence) |
||||||||||||||||
Diluted earnings per share (pence) from continued operations |
15 |
|||||||||||||||
Diluted earnings per share (pence) from discontinued operations |
||||||||||||||||
Total diluted earnings per share (pence) |
Notes |
2022 £m |
2021 (a) £m |
2020 (a) £m |
|||||||||||||
Total profit for the year |
||||||||||||||||
Other comprehensive income/(expense) for the year |
||||||||||||||||
Items that may be subsequently reclassified to continuing operations income statement: |
||||||||||||||||
Exchange movements on overseas net assets and net investment hedges |
38 |
( |
) |
( |
) | |||||||||||
Reclassification of exchange movements on liquidation or disposal of overseas subsidiaries and associates |
38 |
( |
) |
|||||||||||||
Fair value movements on cash flow hedges |
( |
) |
( |
) | ||||||||||||
Reclassification of cash flow hedges to income statement |
||||||||||||||||
Deferred tax on fair value movements on cash flow hedges |
( |
) |
( |
) | ||||||||||||
( |
) |
( |
) | |||||||||||||
Items that will not be reclassified to continuing operations income statement: |
||||||||||||||||
Exchange movements on overseas net assets of non-controlling interests |
38 |
( |
) |
( |
) |
( |
) | |||||||||
Fair value movements on equity investments |
( |
) |
( |
) |
||||||||||||
Tax on fair value movements on equity investments |
( |
) | ||||||||||||||
Remeasurement (losses)/gains on defined benefit plans |
( |
) |
( |
) | ||||||||||||
Tax on remeasurement losses/(gains) on defined benefit plans |
( |
) |
||||||||||||||
Fair value movements on cash flow hedges |
( |
) |
||||||||||||||
( |
) |
( |
) |
|||||||||||||
Other comprehensive expense for the year from continuing operations |
38 |
( |
) |
( |
) |
|||||||||||
Other comprehensive income for the year from discontinued operations |
||||||||||||||||
Total comprehensive income for the year |
||||||||||||||||
Total comprehensive income for the year attributable to: |
||||||||||||||||
Shareholders |
||||||||||||||||
Non-controlling interests |
||||||||||||||||
Total comprehensive income for the year |
(1) | The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see Note 41) and/or the impact of Share Consolidation (see Note 37). |
182 |
GSK Annual Report 2022 |
Notes | 2022 £m |
2021 £m |
||||||||||
Non-current assets |
||||||||||||
Property, plant and equipment |
17 | |||||||||||
Right of use assets |
18 | |||||||||||
Goodwill |
19 | |||||||||||
Other intangible assets |
20 | |||||||||||
Investments in associates and joint ventures |
21 | |||||||||||
Other investments |
23 | |||||||||||
Deferred tax assets |
14 | |||||||||||
Derivative financial instruments |
44 | |||||||||||
Other non-current assets |
24 | |||||||||||
Total non-current assets |
||||||||||||
Current assets |
||||||||||||
Inventories |
25 | |||||||||||
Current tax recoverable |
14 | |||||||||||
Trade and other receivables |
26 | |||||||||||
Derivative financial instruments |
44 | |||||||||||
Current equity investments |
22 | |||||||||||
Liquid investments |
30 | |||||||||||
Cash and cash equivalents |
27 | |||||||||||
Assets held for sale |
28 | |||||||||||
Total current assets |
||||||||||||
Total assets |
||||||||||||
Current liabilities |
||||||||||||
Short-term borrowings |
30 | ( |
) |
( |
) | |||||||
Contingent consideration liabilities |
33 | ( |
) |
( |
) | |||||||
Trade and other payables |
29 | ( |
) |
( |
) | |||||||
Derivative financial instruments |
44 | ( |
) |
( |
) | |||||||
Current tax payable |
14 | ( |
) |
( |
) | |||||||
Short-term provisions |
32 | ( |
) |
( |
) | |||||||
Total current liabilities |
( |
) |
( |
) | ||||||||
Non-current liabilities |
||||||||||||
Long-term borrowings |
30 | ( |
) |
( |
) | |||||||
Corporation tax payable |
14 | ( |
) |
( |
) | |||||||
Deferred tax liabilities |
14 | ( |
) |
( |
) | |||||||
Pensions and other post-employment benefits |
31 | ( |
) |
( |
) | |||||||
Other provisions |
32 | ( |
) |
( |
) | |||||||
Derivative financial instruments |
44 | ( |
) | |||||||||
Contingent consideration liabilities |
33 | ( |
) |
( |
) | |||||||
Other non-current liabilities |
34 | ( |
) |
( |
) | |||||||
Total non-current liabilities |
( |
) |
( |
) | ||||||||
Total liabilities |
( |
) |
( |
) | ||||||||
Net assets |
||||||||||||
Equity |
||||||||||||
Share capital |
37 | |||||||||||
Share premium account |
37 | |||||||||||
Retained earnings |
38 | |||||||||||
Other reserves |
38 | |||||||||||
Shareholders’ equity |
||||||||||||
Non-controlling interests |
( |
) |
||||||||||
Total equity |
183 |
Shareholders’ equity | ||||||||||||||||||||||||||||
Share capital £m |
Share premium £m |
Retained earnings £m |
Other reserves* £m |
Total £m |
Non-controlling interests £m |
Total equity £m |
||||||||||||||||||||||
At 31 December 2019 |
||||||||||||||||||||||||||||
Profit for the year |
||||||||||||||||||||||||||||
Other comprehensive (expense)/income for the year |
( |
) | ( |
) | ||||||||||||||||||||||||
Total comprehensive income for the year |
||||||||||||||||||||||||||||
Distributions to non-controlling interests |
( |
) | ( |
) | ||||||||||||||||||||||||
Contributions from non-controlling interests |
||||||||||||||||||||||||||||
Changes in non-controlling interests |
( |
) | ( |
) | ||||||||||||||||||||||||
Dividends to shareholders |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Realised profits after taxation on disposal of equity investments |
( |
) | ||||||||||||||||||||||||||
Share of associates and joint ventures realised profits on disposal of equity investments |
( |
) | ||||||||||||||||||||||||||
Shares issued |
||||||||||||||||||||||||||||
Shares acquired by ESOP Trusts |
( |
) | ||||||||||||||||||||||||||
Write-down of shares held by ESOP Trusts |
( |
) | ||||||||||||||||||||||||||
Share-based incentive plans |
||||||||||||||||||||||||||||
Tax on share-based incentive plans |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
At 31 December 2020 |
||||||||||||||||||||||||||||
Profit for the year |
||||||||||||||||||||||||||||
Other comprehensive (expense)/income for the year |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
Total comprehensive income for the year |
( |
) |
||||||||||||||||||||||||||
Distributions to non-controlling interests |
( |
) | ( |
) | ||||||||||||||||||||||||
Contributions from non-controlling interests |
||||||||||||||||||||||||||||
Dividends to shareholders |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Shares issued |
||||||||||||||||||||||||||||
Realised after tax profits on disposal of equity investments |
( |
) | ||||||||||||||||||||||||||
Share of associates and joint ventures realised profits on disposal of equity investments |
( |
) | ||||||||||||||||||||||||||
Write-down of shares held by ESOP Trusts |
( |
) | ||||||||||||||||||||||||||
Share-based incentive plans |
||||||||||||||||||||||||||||
Transaction with non-controlling interests |
||||||||||||||||||||||||||||
Tax on share-based incentive plans |
||||||||||||||||||||||||||||
At 31 December 2021 |
||||||||||||||||||||||||||||
Profit for the year |
||||||||||||||||||||||||||||
Other comprehensive (expense)/income for the year |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Total comprehensive income for the year |
( |
) |
||||||||||||||||||||||||||
Distributions to non-controlling interests |
( |
) | ( |
) | ||||||||||||||||||||||||
Non-cash distribution to non-controlling interests |
( |
) | ( |
) | ||||||||||||||||||||||||
Contributions from non-controlling interests |
||||||||||||||||||||||||||||
Changes to non-controlling interests |
( |
) | ( |
) | ||||||||||||||||||||||||
Deconsolidation of former subsidiaries |
( |
) | ( |
) | ||||||||||||||||||||||||
Dividends to shareholders |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Non-cash dividend to shareholders |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Realised after tax losses on disposal or liquidation of equity investments | ( |
) | ||||||||||||||||||||||||||
Share of associates and joint ventures realised profits on disposal of equity investments |
( |
) | ||||||||||||||||||||||||||
Shares issued |
||||||||||||||||||||||||||||
Write-down of shares held by ESOP Trusts |
( |
) | ||||||||||||||||||||||||||
Shares acquired by ESOP Trusts |
( |
) | ||||||||||||||||||||||||||
Share-based incentive plans |
||||||||||||||||||||||||||||
Tax on share-based incentive plans |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Hedging gain after taxation transferred to non-financial assets |
||||||||||||||||||||||||||||
At 31 December 2022 |
( |
) |
* | an analysis of Other reserves is presented as part of Note 38, ‘Movements in equity’. |
184 |
GSK Annual Report 2022 |
Notes | 2022 £m |
2021 (1) £m |
2020 (1) £m |
|||||||||||||
Cash flow from operating activities |
||||||||||||||||
Profit after taxation from continuing operations for the year |
||||||||||||||||
Adjustments reconciling profit after tax to operating cash flows |
42 | |||||||||||||||
Cash generated from operations attributable to continuing operations |
||||||||||||||||
Taxation paid |
( |
) |
( |
) | ( |
) | ||||||||||
Net cash inflow from continuing operating activities |
||||||||||||||||
Cash generated from operations attributable to discontinued operations |
||||||||||||||||
Taxation paid from discontinued operations |
( |
) |
( |
) | ( |
) | ||||||||||
Net operating cash flows attributable to discontinued operations |
||||||||||||||||
Total net cash inflows from operating activities |
||||||||||||||||
Cash flow from investing activities |
||||||||||||||||
Purchase of property, plant and equipment |
( |
) |
( |
) | ( |
) | ||||||||||
Proceeds from sale of property, plant and equipment |
||||||||||||||||
Purchase of intangible assets |
( |
) |
( |
) | ( |
) | ||||||||||
Proceeds from sale of intangible assets |
||||||||||||||||
Purchase of equity investments |
( |
) |
( |
) | ( |
) | ||||||||||
Purchase of businesses, net of cash acquired |
41 | ( |
) |
|||||||||||||
Proceeds from sale of equity investments |
||||||||||||||||
Contingent consideration paid |
( |
) |
( |
) | ( |
) | ||||||||||
Disposal of businesses |
41 | ( |
) |
( |
) | |||||||||||
Investments in associates and joint ventures |
41 | ( |
) |
( |
) | ( |
) | |||||||||
Proceeds from disposal of associates and joint ventures |
||||||||||||||||
Interest received |
||||||||||||||||
Decrease/(increase) in liquid investments |
( |
) | ||||||||||||||
Dividends from associates and joint ventures |
||||||||||||||||
Net cash outflow from continuing investing activities |
( |
) |
( |
) | ||||||||||||
Net cash investing cash flows attributable to discontinued operations |
( |
) |
( |
) | ||||||||||||
Total net cash (outflow)/inflow from investing activities |
( |
) |
( |
) | ||||||||||||
Cash flow from financing activities |
||||||||||||||||
Issue of share capital |
37 | |||||||||||||||
Repayment of long-term loans |
( |
) |
||||||||||||||
Issue of long-term notes |
||||||||||||||||
Repayment of short-term loans |
( |
) |
( |
) | ( |
) | ||||||||||
Increase in/(repayment of) other short-term loans |
( |
) | ||||||||||||||
Repayment of lease liabilities |
( |
) |
( |
) | ( |
) | ||||||||||
Interest paid |
( |
) |
( |
) | ( |
) | ||||||||||
Dividends paid to shareholders |
( |
) |
( |
) | ( |
) | ||||||||||
Distributions to non-controlling interests |
( |
) |
( |
) | ( |
) | ||||||||||
Contributions from non-controlling interests |
||||||||||||||||
Other financing items |
( |
) | ||||||||||||||
Net cash outflow from continuing financing activities |
( |
) |
( |
) | ( |
) | ||||||||||
Net financing cash flows attributable to discontinued operations |
( |
) | ( |
) | ||||||||||||
Total net cash inflow/(outflow) from financing activities |
( |
) | ( |
) | ||||||||||||
(Increase)/decrease in cash and bank overdrafts |
43 | ( |
) |
( |
) | |||||||||||
Cash and bank overdrafts at the beginning of year |
||||||||||||||||
Exchange adjustments |
( |
) | ( |
) | ||||||||||||
Increase/(Decrease) in cash and bank overdrafts in the year |
( |
) |
( |
) | ||||||||||||
Cash and bank overdrafts at the end of year |
||||||||||||||||
Cash and bank overdrafts at end of year comprise: |
||||||||||||||||
Cash and cash equivalents |
||||||||||||||||
Overdrafts |
( |
) |
( |
) | ( |
) | ||||||||||
(1) | The 2021 and 2020 comparative results have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see Note 41). |
185 |
– | Consolidated income statement |
– | Consolidated statement of comprehensive income |
– | Consolidated balance sheet |
– | Consolidated statement of changes in equity |
– | Consolidated cash flow statement |
– | Notes to the financial statements. |
– | the assets and liabilities, and the results and cash flows, of the company and its subsidiaries, including ESOP Trusts |
– | the Group’s share of the results and net assets of associates and joint ventures |
– | the Group’s share of assets, liabilities, revenue and expenses of joint operations. |
186 |
GSK Annual Report 2022 |
187 |
188 |
GSK Annual Report 2022 |
Freehold buildings |
||
Leasehold land and buildings |
||
Plant and machinery |
||
Equipment and vehicles |
189 |
190 |
GSK Annual Report 2022 |
191 |
(1) | The 2021 comparative results have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see page 238). |
192 |
GSK Annual Report 2022 |
(1) | The 2021 comparative results have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see page 238). |
193 |
2022 |
2021 | 2020 | ||||||||||
Average rates: |
||||||||||||
US$/£ |
||||||||||||
Euro/£ |
||||||||||||
Yen/£ |
2022 |
2021 | 2020 | ||||||||||
Period end rates: |
||||||||||||
US$/£ |
||||||||||||
Euro/£ |
||||||||||||
Yen/£ |
194 |
GSK Annual Report 2022 |
Turnover by segment |
2022 £m |
2021 (revised) £m |
2020 (revised) £m |
|||||||||
Commercial operations |
||||||||||||
Consumer Healthcare |
||||||||||||
Commercial Operations: |
2022 £m |
2021 (1) (revised) £m |
2020 (1) (revised) £m |
|||||||||
HIV |
||||||||||||
Oncology |
||||||||||||
Immuno-inflammation, respiratory and other |
||||||||||||
Pandemic |
||||||||||||
Specialty Medicines |
||||||||||||
Meningitis |
||||||||||||
Influenza |
||||||||||||
Shingles |
||||||||||||
Established Vaccines |
||||||||||||
Pandemic Vaccines |
||||||||||||
Vaccines |
||||||||||||
Respiratory |
||||||||||||
Other General Medicines |
||||||||||||
General Medicines |
||||||||||||
Total Commercial Operations |
||||||||||||
Total Consumer Healthcare |
(1) | The 2021 and 2020 comparatives have been revised to reflect the Commercial Operations segment. |
195 |
Segment profit |
2022 £m |
2021 (1) (revised) £m |
|
2020 (1) (revised) £m |
| |||||||
Commercial Operations |
||||||||||||
Research and development |
( |
) |
( |
) | ( |
) | ||||||
Consumer Healthcare |
||||||||||||
Segment profit |
||||||||||||
Corporate and other unallocated costs |
( |
) |
( |
) | ( |
) | ||||||
Other reconciling items between segment profit and operating profit |
( |
) |
( |
) | ( |
) | ||||||
Total Operating profit |
||||||||||||
Finance income |
||||||||||||
Finance costs |
( |
) |
( |
) | ( |
) | ||||||
Loss on disposal of interest in associates |
( |
) | ||||||||||
Share of after-tax profits/(losses) of associates and joint ventures |
( |
) |
||||||||||
Profit before taxation from continuing operations |
||||||||||||
Taxation |
( |
) |
( |
) | ( |
) | ||||||
Profit after taxation for the year from continuing operations |
Depreciation and amortisation by segment |
2022 £m |
2021 (a) (revised) £m |
|
2020 (a) (revised) £m |
| |||||||
Commercial Operations |
||||||||||||
Research and development |
||||||||||||
Segment depreciation and amortisation |
||||||||||||
Corporate and other unallocated depreciation and amortisation |
||||||||||||
Other reconciling items between segment depreciation and amortisation and total depreciation and amortisation |
||||||||||||
Total depreciation and amortisation |
(1) | The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see Note 41). |
196 |
GSK Annual Report 2022 |
PP&E, intangible asset and goodwill impairment by segment |
2022 £m |
2021 (1) (revised) (2) £m |
2020 (1) (revised) (2) £m |
|||||||||
Commercial Operations |
||||||||||||
Research and development |
||||||||||||
Segment impairment |
||||||||||||
Corporate and other unallocated impairment |
||||||||||||
Other reconciling items between segment impairment and total impairment |
||||||||||||
Total impairment |
||||||||||||
PP&E and intangible asset impairment reversals by segment |
||||||||||||
Commercial Operations |
( |
) |
( |
) |
( |
) | ||||||
Research and development |
( |
) |
( |
) |
( |
) | ||||||
Segment impairment reversals |
( |
) |
( |
) |
( |
) | ||||||
Corporate and other unallocated impairment reversals |
( |
) | ||||||||||
Other reconciling items between segment impairment reversals and total impairment reversals |
( |
) |
( |
) |
( |
) | ||||||
Total impairment reversals |
( |
) |
( |
) |
( |
) |
Net operating assets by segment |
2022 £m |
2021 (revised) (2) £m |
||||||||||
Commercial Operations |
|
|
| |||||||||
|
|
| ||||||||||
Research and development |
|
|
| |||||||||
|
|
| ||||||||||
Segment net operating assets |
|
|
| |||||||||
|
|
| ||||||||||
Corporate and other unallocated net operating assets |
|
|
| |||||||||
|
|
| ||||||||||
Discontinued operations |
|
|
| |||||||||
|
|
| ||||||||||
Net operating assets |
|
|
| |||||||||
|
|
| ||||||||||
Net debt |
( |
) |
( |
) |
|
|
| |||||
|
|
| ||||||||||
Investments in associates and joint ventures |
|
|
| |||||||||
|
|
| ||||||||||
Current Equity Investment |
|
|
| |||||||||
|
|
| ||||||||||
Derivative financial instruments |
( |
) |
|
|
| |||||||
|
|
| ||||||||||
Current and deferred taxation |
|
|
| |||||||||
|
|
| ||||||||||
Assets held for sale (excluding cash and cash equivalents) |
|
|
| |||||||||
|
|
| ||||||||||
Net assets |
|
|
|
Turnover by location of customer |
2022 £m |
2021 (1) (revised) (2) £m |
2020 (1) (revised) (2) £m |
|||||||||
UK |
||||||||||||
US |
||||||||||||
Rest of World |
||||||||||||
External turnover |
Non-current assets by location of subsidiary |
2022 £m |
2021 £m |
||||||||||
UK |
||||||||||||
US |
||||||||||||
Belgium |
||||||||||||
Switzerland |
||||||||||||
Rest of World |
||||||||||||
Non-current assets |
(1) | The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see Note 41). |
(2) | The 2021 and 2020 comparatives have been revised to reflect the new segments. |
197 |
2022 £m |
2021 (1) £m |
|
2020 (1) £m |
| ||||||||
Upfront settlement income (2) |
– | – | ||||||||||
Fair value remeasurements of equity investments |
( |
) | ||||||||||
Disposal of businesses and assets |
||||||||||||
Fair value remeasurements on contingent consideration recognised in business combinations |
( |
) |
( |
) | ( |
) | ||||||
Remeasurement of ViiV Healthcare put option liabilities and preferential dividends |
( |
) |
( |
) | ||||||||
Fair value adjustments on derivative financial instruments |
( |
) | ||||||||||
Other income |
||||||||||||
( |
) |
( |
) |
(1) |
(2) |
198 |
GSK Annual Report 2022 |
The following items have been included in operating profit: |
2022 £m |
2021 (1) £m |
2020 (1) £m |
|||||||||
Employee costs (Note 9) |
||||||||||||
Advertising |
||||||||||||
Distribution costs |
||||||||||||
Depreciation of property, plant and equipment |
||||||||||||
Impairment of property, plant and equipment, net of reversals |
||||||||||||
Depreciation of right of use assets |
||||||||||||
Impairment of right of use assets |
||||||||||||
Amortisation of intangible assets |
||||||||||||
Impairment of intangible assets, net of reversals |
||||||||||||
Impairment of intangible assets held for sale, net of reversals |
||||||||||||
Impairment of goodwill allocated to a disposal group, net of reversals |
||||||||||||
Net foreign exchange (gains)/losses |
( |
) |
||||||||||
Inventories: |
||||||||||||
Cost of inventories included in cost of sales |
||||||||||||
Write-down of inventories |
||||||||||||
Reversal of prior year write-down of inventories |
( |
) |
( |
) |
( |
) | ||||||
Short-term lease charge |
||||||||||||
Low-value lease charge |
||||||||||||
Variable lease payments |
||||||||||||
Fees payable to the company’s auditor and its associates in relation to the Group (see below) |
Fees payable to the company’s auditor and its associates: |
2022 £m |
2021 £m |
2020 £m |
|||||||||
Audit of parent company and consolidated financial statements including attestation under s.404 of Sarbanes-Oxley Act 2002 |
||||||||||||
Audit of the company’s subsidiaries |
||||||||||||
Total audit services |
||||||||||||
Audit-related and other assurance services |
||||||||||||
Total audit services, audit-related and other assurance services |
2022 £m |
2021 £m |
2020 £m |
||||||||||
Audit |
(1) | The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see Note 41). |
199 |
2022 £m |
2021 (1) £m |
2020 (1) £m |
||||||||||
Wages and salaries |
||||||||||||
Social security costs |
||||||||||||
Pension and other post-employment costs, including augmentations (Note 31) |
||||||||||||
Cost of share-based incentive plans |
||||||||||||
Severance and other costs from integration and restructuring activities |
||||||||||||
2022 £m |
2021 (1) £m |
2020 (1) £m |
||||||||||
Share Value Plan |
||||||||||||
Performance Share Plan |
||||||||||||
Share option plans |
||||||||||||
Cash settled and other plans |
||||||||||||
2022 Number |
2021 (1) Number |
2020 (1) Number |
||||||||||
Manufacturing |
||||||||||||
Selling, general and administration |
||||||||||||
Research and development |
||||||||||||
Total Continuing Operations |
||||||||||||
Discontinued Operations |
||||||||||||
Total |
2022 £m |
2021 (1) £m |
2020 (1) £m |
||||||||||
Wages and salaries |
||||||||||||
Social security costs |
||||||||||||
Pension and other post-employment costs |
||||||||||||
Cost of share-based incentive plans |
||||||||||||
(1) | The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see Note 41). |
200 |
GSK Annual Report 2022 |
– | Restructuring costs to prepare for separation of GSK into two companies |
– | Continued transformation of central functions, including GSK technology platforms and interfaces, to deliver greater digital synergies, simplification of applications and staff reductions |
– | The integration of acquisitions. |
2022 £m |
2021 (1) £m |
2020 (1) £m |
||||||||||
Increase in provision for Major restructuring programmes (see Note 32 ) |
||||||||||||
Amount of provision reversed unused (see Note 32) |
( |
) |
( |
) |
( |
) | ||||||
Impairment losses recognised |
||||||||||||
Other non-cash charges/(credit) |
( |
) |
||||||||||
Other cash costs |
||||||||||||
2022 |
||||||||||||
Cash £m |
Non-cash £m |
Total £m |
||||||||||
Separation Preparation programme |
||||||||||||
Significant acquisitions |
||||||||||||
Legacy programmes |
||||||||||||
2021 (a) |
||||||||||||
Cash £m |
Non-cash £m |
Total £m |
||||||||||
Separation Preparation programme |
||||||||||||
Legacy programmes |
( |
) |
||||||||||
(1) | The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see Note 41). |
201 |
2022 £m |
2021 (1) £m |
2020 (1) £m |
||||||||||
Cost of sales |
||||||||||||
Selling, general and administration |
||||||||||||
Research and development |
||||||||||||
2022 £m |
2021 (1) £m |
2020 (1) £m |
||||||||||
Finance income arising from: |
||||||||||||
Financial assets measured at amortised cost |
||||||||||||
Financial assets measured at fair value through profit or loss |
||||||||||||
Net gains arising from the forward element of forward contracts in net investment hedge relationships |
||||||||||||
Other finance income |
||||||||||||
2022 £m |
2021 (1) £m |
2020 (1) £m |
||||||||||
Finance expense arising on: |
||||||||||||
Financial liabilities at amortised cost |
( |
) |
( |
) |
( |
) | ||||||
Net losses arising from: |
||||||||||||
Financial instruments mandatorily measured at fair value through profit or loss |
( |
) |
||||||||||
Retranslation of loans |
( |
) |
( |
) | ||||||||
Reclassification of hedges from other comprehensive income |
( |
) |
( |
) |
( |
) | ||||||
Unwinding of discounts on provisions |
( |
) |
( |
) |
( |
) | ||||||
Finance expense arising on lease liabilities |
( |
) |
( |
) |
( |
) | ||||||
Other finance expense |
( |
) |
( |
) |
( |
) | ||||||
( |
) |
( |
) |
( |
) |
(1) | The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see Note 41). |
202 |
GSK Annual Report 2022 |
2022 £m |
2021 (1) £m |
2020 (1) £m |
||||||||||
Share of after-tax profits of associates |
||||||||||||
Share of after-tax losses of joint ventures |
( |
) |
( |
) |
||||||||
( |
) |
(1) | 2021 and 2020 comparatives have not been restated, as the demerged Consumer Healthcare business contained no associates or joint ventures. |
2021 £m |
2020 £m |
|||||||
Turnover |
||||||||
Profit after taxation |
||||||||
Total comprehensive income |
2022 £m |
2021 £m |
2020 £m |
||||||||||
Share of after-tax losses |
( |
) |
( |
) | ||||||||
Share of other comprehensive income/(expense) |
( |
) |
||||||||||
Share of total comprehensive income/(expense) |
( |
) |
203 |
Taxation charge based on profits for the year |
2022 £m |
2021 (1) £m |
2020 (1) £m |
|||||||||
UK current year charge |
( |
) | ||||||||||
Rest of World current year charge |
||||||||||||
Charge/(credit) in respect of prior periods |
( |
) |
||||||||||
Current taxation |
||||||||||||
Deferred taxation |
( |
) |
( |
) |
( |
) | ||||||
Reconciliation of taxation on Group profits |
2022 £m |
2022 % |
2021 (1) £m |
2021 % |
2020 (1) £m |
2020 % |
||||||||||||||||||
Profit before tax |
||||||||||||||||||||||||
UK statutory rate of taxation |
||||||||||||||||||||||||
Differences in overseas taxation rates |
||||||||||||||||||||||||
Benefit of intellectual property incentives |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
R&D credits |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
Permanent differences on disposals, acquisitions and transfers |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||
Other permanent differences |
( |
) |
( |
) |
||||||||||||||||||||
Re-assessments of prior year current tax estimates |
( |
) |
( |
) |
||||||||||||||||||||
Re-assessments of prior year deferred tax estimates |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
Changes in Tax Rates |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
Tax charge/tax rate |
(1) | The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see Note 41). |
204 |
GSK Annual Report 2022 |
Tax on items charged to equity and statement of comprehensive income |
2022 £m |
2021 (1) £m |
2020 (1) £m |
|||||||||
Current taxation |
||||||||||||
Share-based payments |
( |
) |
( |
) | ||||||||
Defined benefit plans |
( |
) | ||||||||||
Fair value movements on cash flow hedges |
||||||||||||
Fair value movements on equity investments |
||||||||||||
Deferred taxation |
||||||||||||
Share-based payments |
( |
) | ||||||||||
Defined benefit plans |
( |
) |
( |
) | ||||||||
Fair value movements on cash flow hedges |
( |
) |
||||||||||
Fair value movements on equity investments |
( |
) |
( |
) | ||||||||
( |
) |
|||||||||||
Total credit to equity and statement of comprehensive income |
( |
) |
(1) | The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see Note 41). |
205 |
Accelerated capital allowances £m |
Intangible assets £m |
Contingent consideration £m |
Intra-Group profit £m |
Pensions & other post employment benefits £m |
Tax losses £m |
Share option and award schemes £m |
Other net temporary differences £m |
Total £m |
||||||||||||||||||||||||||||
At 1 January 2021 |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Exchange adjustments |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Credit/(charge) to income statement |
( |
) | ||||||||||||||||||||||||||||||||||
Credit/(charge) to statement of comprehensive income | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Acquisitions/Disposals |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
R&D credits utilisation |
||||||||||||||||||||||||||||||||||||
At 31 December 2021 |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Exchange adjustments |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Credit/(charge) to income statement |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Credit/(charge) to statement of comprehensive income | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Acquisitions/Disposals | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
R&D credits utilisation |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Transfer of assets held for sale/distribution |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
At 31 December 2022 |
( |
) | ( |
) | |
|
2022 £m |
2021 £m |
|||||||
Deferred tax assets |
||||||||
Deferred tax liabilities |
( |
) |
( |
) | ||||
2022 |
2021 | |||||||||||||||
Unrecognised tax losses |
Tax losses £m |
Unrecognised deferred tax asset £m |
Tax losses £m |
Unrecognised deferred tax asset £m |
||||||||||||
Trading losses expiring: |
||||||||||||||||
Within 10 years |
||||||||||||||||
More than 10 years |
||||||||||||||||
Available indefinitely |
||||||||||||||||
At 31 December |
||||||||||||||||
Capital losses expiring: |
||||||||||||||||
Available indefinitely |
||||||||||||||||
At 31 December |
206 |
GSK Annual Report 2022 |
2022 pence |
2021 (1) pence |
2020 (1) pence |
||||||||||
Basic earnings per share from continuing operations |
||||||||||||
Basic earnings per share from discontinued operations |
||||||||||||
Total basic earnings per share |
||||||||||||
Diluted earnings per share from continuing operations |
||||||||||||
Diluted earnings per share from discontinued operations |
||||||||||||
Total diluted earnings per share |
|
|
(1) | The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see Note 41) and/or the impact of Share Consolidation (see Note 37). |
Weighted average number of shares in issue |
2022 millions |
2021 (2) millions |
2020 (2) millions |
|||||||||
Basic |
||||||||||||
Dilution for share options and awards |
||||||||||||
Diluted |
(2) | Restated to reflect the impact share consolidation (see N ote |
2022 |
2021 | 2020 | ||||||||||||||||||||||||||||
Paid/payable |
Dividend per share (pence) (3) |
Total dividend £m |
Paid | Dividend per share (pence) (3) |
Total dividend £m |
Paid | Dividend per share (pence) (3) |
Total dividend £m |
||||||||||||||||||||||
First interim |
||||||||||||||||||||||||||||||
Second interim |
||||||||||||||||||||||||||||||
Third interim |
||||||||||||||||||||||||||||||
Fourth interim |
* | |||||||||||||||||||||||||||||
Total |
* | The estimate for the fourth interim dividend for 2021 disclosed in the 2021 annual report was £ |
(3) | Dividends per share were retrospectively adjusted to reflect the Share Consolidation in all the periods presented. See details in Note 37. |
2022 £m |
2021 £m |
2020 £m |
||||||||||
Cash dividends to shareholders |
||||||||||||
Dividends in specie to shareholders in Haleon plc shares (Note 41) |
||||||||||||
207 |
Land and buildings £m |
Plant, equipment and vehicles £m |
Assets in construction £m |
Total £m |
|||||||||||||
Cost at 1 January 2021 |
||||||||||||||||
Exchange adjustments |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other additions |
||||||||||||||||
Capitalised borrowing costs |
– | – | ||||||||||||||
Disposals and write-offs |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Reclassifications |
( |
) | ( |
) | ||||||||||||
Transfer to assets held for sale/distribution |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Cost at 31 December 2021 |
||||||||||||||||
Exchange adjustments |
||||||||||||||||
Additions through business combinations |
||||||||||||||||
Other additions |
||||||||||||||||
Capitalised borrowing costs |
||||||||||||||||
Disposals and write-offs |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Reclassifications |
( |
) | ( |
) | ||||||||||||
Transfer to assets held for sale/distribution |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Cost at 31 December 2022 |
||||||||||||||||
Depreciation at 1 January 2021 |
( |
) | ( |
) | – | ( |
) | |||||||||
Exchange adjustments |
– | |||||||||||||||
Charge for the year |
( |
) | ( |
) | – | ( |
) | |||||||||
Disposals and write-offs |
– | |||||||||||||||
Transfer to assets held for sale/distribution |
– | |||||||||||||||
Depreciation at 31 December 2021 |
( |
) | ( |
) | – | ( |
) | |||||||||
Exchange adjustments |
( |
) | ( |
) | – | ( |
) | |||||||||
Charge for the year |
( |
) | ( |
) | – | ( |
) | |||||||||
Disposals and write-offs |
– | |||||||||||||||
Transfer to assets held for sale/distribution |
– | |||||||||||||||
Depreciation at 31 December 2022 |
( |
) | ( |
) | – | ( |
) | |||||||||
Impairment at 1 January 2021 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Exchange adjustments |
||||||||||||||||
Disposals and write-offs |
||||||||||||||||
Impairment losses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Reversal of impairments |
– | |||||||||||||||
Impairment at 31 December 2021 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Exchange adjustments |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Disposals and write-offs |
||||||||||||||||
Impairment losses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Reversal of impairments |
||||||||||||||||
Transfer to assets held for sale/distribution |
||||||||||||||||
Impairment at 31 December 2022 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Total depreciation and impairment at 31 December 2021 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Total depreciation and impairment at 31 December 2022 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net book value at 1 January 2021 |
||||||||||||||||
Net book value at 31 December 2021 |
||||||||||||||||
Net book value at 31 December 2022 |
208 |
GSK Annual Report 2022 |
Land and buildings £m |
Plant and equipment £m |
Vehicles £m |
Total £m |
|||||||||||||
Net book value at 1 January 2021 |
||||||||||||||||
Exchange adjustments |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Additions |
||||||||||||||||
Depreciation |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Disposals |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Impairments |
( |
) | – | – | ( |
) | ||||||||||
Net book value at 31 December 2021 |
||||||||||||||||
Exchange adjustments |
||||||||||||||||
Additions through business combinations |
||||||||||||||||
Other additions |
||||||||||||||||
Depreciation |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Transfer to assets held for sale/distribution |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Disposals |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Impairments |
( |
) | ( |
) | ||||||||||||
Net book value at 31 December 2022 |
209 |
2022 £m |
2021 £m |
|||||||
Cost at 1 January |
||||||||
Exchange adjustments |
( |
) | ||||||
Additions through business combinations (Note 41) |
– | |||||||
Other movements |
||||||||
Transfer to assets held for sale/distribution |
( |
) |
– | |||||
Cost at 31 December |
||||||||
Net book value at 1 January |
||||||||
Net book value at 31 December |
2022 £m |
||||
Commercial operations |
||||
Total R&D |
||||
Net book value at 31 December |
2021 £m |
||||
Pharmaceuticals |
||||
Vaccines |
||||
Consumer Healthcare |
||||
Net book value at 31 December |
Valuation basis |
||||||
Key assumptions |
Sales growth rates Profit margins Terminal growth rate Discount rate Taxation rate |
|||||
Determination of assumptions |
Growth rates are internal forecasts based on both internal and external market information. Margins reflect past experience, adjusted for expected changes. Terminal growth rates based on management’s estimate of future long-term average growth rates. Discount rates based on Group WACC, adjusted where appropriate. Taxation rates based on appropriate rates for each jurisdiction. | |||||
Period of specific projected cash flows |
||||||
Terminal growth rate and discount rate |
Terminal growth rate | Discount rate | ||||
2022 | ||||||
Commercial operations | ||||||
R&D | ||||||
2021 | ||||||
Pharmaceuticals | ||||||
Vaccines | ||||||
Consumer Healthcare |
210 |
GSK Annual Report 2022 |
Computer software £m |
Licences, patents, amortised brands etc. £m |
Indefinite life brands £m |
Total £m |
|||||||||||||
Cost at 1 January 2021 |
||||||||||||||||
Exchange adjustments |
( |
) | ( |
) | ( |
) | ||||||||||
Capitalised development costs |
– | – | ||||||||||||||
Other additions |
– | |||||||||||||||
Disposals and asset write-offs |
( |
) | ( |
) | – | ( |
) | |||||||||
Transfer to assets held for sale/distribution |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Reclassifications |
( |
) | ||||||||||||||
Cost at 31 December 2021 |
||||||||||||||||
Exchange adjustments |
||||||||||||||||
Capitalised development costs |
||||||||||||||||
Additions through business combinations |
||||||||||||||||
Other additions |
||||||||||||||||
Disposals and asset write-offs |
( |
) | ( |
) | ( |
) | ||||||||||
Transfer to assets held for sale/distribution |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Reclassifications |
( |
) | ||||||||||||||
Cost at 31 December 2022 |
||||||||||||||||
Amortisation at 1 January 2021 |
( |
) | ( |
) | – | ( |
) | |||||||||
Exchange adjustments |
– | |||||||||||||||
Charge for the year |
( |
) | ( |
) | – | ( |
) | |||||||||
Disposals and asset write-offs |
– | |||||||||||||||
Transfer to assets held for sale |
– | – | ||||||||||||||
Amortisation at 31 December 2021 |
( |
) | ( |
) | – | ( |
) | |||||||||
Exchange adjustments |
( |
) | ( |
) | – | ( |
) | |||||||||
Charge for the year |
( |
) | ( |
) | – | ( |
) | |||||||||
Disposals and asset write-offs |
– | |||||||||||||||
Transfer to assets held for sale/distribution |
– | |||||||||||||||
Amortisation at 31 December 2022 |
( |
) | ( |
) | – | ( |
) | |||||||||
Impairment at 1 January 2021 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Exchange adjustments |
– | – | ||||||||||||||
Impairment losses |
( |
) | ( |
) | – | ( |
) | |||||||||
Reversal of impairments |
– | |||||||||||||||
Disposals and asset write-offs |
– | |||||||||||||||
Impairment at 31 December 2021 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Exchange adjustments |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Impairment losses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Transfer to assets held for sale/distribution |
||||||||||||||||
Reversal of impairments |
||||||||||||||||
Disposals and asset write-offs |
||||||||||||||||
Impairment at 31 December 2022 |
( |
) | ( |
) | ( |
) | ||||||||||
Total amortisation and impairment at 31 December 2021 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Total amortisation and impairment at 31 December 2022 |
( |
) | ( |
) | ( |
) | ||||||||||
Net book value at 1 January 2021 |
||||||||||||||||
Net book value at 31 December 2021 |
||||||||||||||||
Net book value at 31 December 2022 |
211 |
Amortisation |
Net impairment losses |
|||||||||||||||||||
2022 £m |
2021 (a) £m |
2022 £m |
2021 (a) £m |
|||||||||||||||||
Cost of sales |
||||||||||||||||||||
Selling, general and administration |
||||||||||||||||||||
Research and development |
||||||||||||||||||||
(a) | The 2021 comparatives have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see Note 41). |
2022 £m |
2021 £m |
|||||||
Tesaro Assets |
||||||||
Meningitis portfolio |
||||||||
Momelotinib |
– | |||||||
Affinivax Assets |
– | |||||||
Dolutegravir |
||||||||
Benlysta |
||||||||
Alector Assets |
||||||||
iTeos Assets |
||||||||
Shingrix |
||||||||
Okairos |
||||||||
BMS Assets |
||||||||
Spero |
– | |||||||
Vir Assets |
||||||||
Fluarix/FluLaval |
||||||||
Stiefel trade name |
||||||||
CureVac Assets |
||||||||
Lamisil (a) |
||||||||
Others |
||||||||
(a) | Disposed of as part of the Consumer Healthcare demerger (Note 41). |
212 |
GSK Annual Report 2022 |
Joint ventures £m |
Associates £m |
2022 Total £m |
Joint ventures £m |
Associates £m |
2021 Total £m |
|||||||||||||||||||
At 1 January |
||||||||||||||||||||||||
Exchange adjustments |
– |
( |
) |
( |
) | |||||||||||||||||||
Additions |
– |
|||||||||||||||||||||||
Disposals |
– |
( |
) |
( |
) | |||||||||||||||||||
Distributions received |
( |
) |
( |
) |
– |
( |
) |
( |
) | |||||||||||||||
Net fair value movements through Other comprehensive income |
( |
) |
( |
) |
– |
|||||||||||||||||||
Impairment of interest in associates |
– |
( |
) |
( |
) | |||||||||||||||||||
Profit/(loss) after tax recognised in the consolidated income statement |
( |
) |
( |
) |
( |
) |
||||||||||||||||||
At 31 December |
Current |
Investments measured at FVTPL 2022 £m |
|||
At 1 January |
||||
Exchange adjustments |
||||
Additions |
||||
Net fair value movements through profit or loss |
||||
At 31 December |
213 |
Non-current |
Investments designated as measured at FVTOCI £m |
Investments measured at FVTPL £m |
2022 £m |
Investments designated as measured at FVTOCI £m |
Investments measured at FVTPL £m |
2021 £m |
||||||||||||||||||
At 1 January |
|
|||||||||||||||||||||||
Exchange adjustments |
– | |||||||||||||||||||||||
Additions |
||||||||||||||||||||||||
Net fair value movements through Other comprehensive income |
( |
) | – | ( |
) |
( |
) | – | ( |
) | ||||||||||||||
Net fair value movements through profit or loss |
– | – | ||||||||||||||||||||||
Disposals |
( |
) | – | ( |
) |
( |
) | ( |
) | ( |
) | |||||||||||||
At 31 December |
214 |
GSK Annual Report 2022 |
2022 £m |
2021 £m |
|||||||
Amounts receivable under insurance contracts |
||||||||
Pension schemes in surplus |
||||||||
Other receivables |
||||||||
2022 £m |
2021 £m |
|||||||
Raw materials and consumables |
||||||||
Work in progress |
||||||||
Finished goods |
||||||||
2022 £m |
2021 £m |
|||||||
Trade receivables, net of loss allowance |
||||||||
Accrued income |
||||||||
Prepayments |
||||||||
Interest receivable |
||||||||
Employee loans and advances |
||||||||
Other receivables |
||||||||
Loss allowance - trade receivables |
2022 £m |
2021 £m |
||||||
At 1 January |
||||||||
Exchange adjustments |
( |
) | ||||||
Charge for the year |
||||||||
Transfer to assets held for sale |
( |
) |
– | |||||
Subsequent recoveries of amounts provided for |
( |
) |
( |
) | ||||
Utilised |
( |
) |
( |
) | ||||
At 31 December |
215 |
GSK Annual Report 2022 |
2022 £m |
2021 £m |
|||||||
Cash at bank and in hand |
||||||||
Short-term deposits |
||||||||
2022 £m |
2021 £m |
|||||||
Property, plant and equipment |
||||||||
Other |
– | |||||||
216 |
GSK Annual Report 2022 |
2022 £m |
2021 £m |
|||||||
Trade payables |
||||||||
Wages and salaries |
||||||||
Social security |
||||||||
ViiV Healthcare put option |
||||||||
Other payables |
||||||||
Deferred income |
||||||||
Customer return and rebate accruals |
||||||||
Other accruals |
||||||||
Increase/(decrease) in financial liability and loss/(gain) in Income statement |
2022 £m |
2021 £m |
||||||
10% increase in sales forecasts* |
||||||||
15% increase in sales forecasts* |
||||||||
10% decrease in sales forecasts* |
( |
) |
( |
) | ||||
15% decrease in sales forecast* |
( |
) |
( |
) | ||||
1% (100 basis points) increase in discount rate |
( |
) |
( |
) | ||||
1.50% (150 basis points) increase in discount rate |
( |
) |
( |
) | ||||
1% (100 basis points) decrease in discount rate |
||||||||
1.50% (150 basis points) decrease in discount rate |
||||||||
10 cent appreciation of US Dollar |
||||||||
15 cent appreciation of US Dollar |
||||||||
10 cent depreciation of US Dollar |
( |
) |
( |
) | ||||
15 cent depreciation of US Dollar |
( |
) |
( |
) | ||||
10 cent appreciation of Euro |
||||||||
15 cent appreciation of Euro |
||||||||
10 cent depreciation of Euro |
( |
) |
( |
) | ||||
15 cent depreciation of Euro |
( |
) |
( |
) |
217 |
GSK Annual Report 2022 |
Listing exchange | 2022 £m |
2021 £m |
||||||||
Current assets: |
||||||||||
Liquid investments |
||||||||||
Cash and cash equivalents |
||||||||||
Short-term borrowings: |
||||||||||
Commercial paper |
( |
) |
( |
) | ||||||
Bank loans, overdrafts and other |
( |
) |
( |
) | ||||||
2.850% US$ US Medium Term Note 2022 |
New York Stock Exchange | ( |
) | |||||||
2.875% US$ US Medium Term Note 2022 |
New York Stock Exchange | ( |
) | |||||||
0.125% € European Medium Term Note 2023 |
London Stock Exchange | ( |
) |
|||||||
0.000% € European Medium Term Note 2023 |
London Stock Exchange | ( |
) |
|||||||
0.534% US$ Medium Term Note 2023 |
New York Stock Exchange | ( |
) |
|||||||
Lease liabilities |
( |
) |
( |
) | ||||||
( |
) |
( |
) | |||||||
Long-term borrowings: |
||||||||||
2.800% US$ US Medium Term Note 2023 |
New York Stock Exchange | ( |
) | |||||||
0.125% € Euro Medium Term Note 2023 |
London Stock Exchange | ( |
) | |||||||
3.375% US$ US Medium Term Note 2023 |
New York Stock Exchange | ( |
) | |||||||
0.000% US$ US Medium Term Note 2023 |
New York Stock Exchange | ( |
) | |||||||
0.000% € Euro Medium Term Note 2023 |
London Stock Exchange | ( |
) | |||||||
0.534% US$ US Medium Term Note 2023 |
New York Stock Exchange | ( |
) | |||||||
3.000% US$ US Medium Term Note 2024 |
New York Stock Exchange | ( |
) |
( |
) | |||||
1.375% € Euro Medium Term Note 2024 |
London Stock Exchange | ( |
) |
( |
) | |||||
4.000% € Euro Medium Term Note 2025 |
London Stock Exchange | ( |
) |
( |
) | |||||
3.625% US$ US Medium Term Note 2025 |
New York Stock Exchange | ( |
) |
( |
) | |||||
1.000% € Euro Medium Term Note 2026 |
London Stock Exchange | ( |
) |
( |
) | |||||
1.250% € Euro Medium Term Note 2026 |
London Stock Exchange | ( |
) |
( |
) | |||||
3.000% € Euro Medium Term Note 2027 |
London Stock Exchange | ( |
) |
|||||||
3.375% £ Euro Medium Term Note 2027 |
London Stock Exchange | ( |
) |
( |
) | |||||
3.875% US$ US Medium Term Note 2028 |
New York Stock Exchange | ( |
) |
( |
) | |||||
1.250% £ Euro Medium Term Note 2028 |
London Stock Exchange | ( |
) |
( |
) | |||||
3.375% US$ US Medium Term Note 2029 |
New York Stock Exchange | ( |
) |
( |
) | |||||
1.375% € Euro Medium Term Note 2029 |
London Stock Exchange | ( |
) |
( |
) | |||||
1.750% € Euro Medium Term Note 2030 |
London Stock Exchange | ( |
) |
( |
) | |||||
3.125% € Euro Medium Term Note 2032 |
London Stock Exchange | ( |
) |
|||||||
5.250% £ Euro Medium Term Note 2033 (1) |
London Stock Exchange | ( |
) |
( |
) | |||||
5.375% US$ US Medium Term Note 2034 |
London Stock Exchange | ( |
) |
( |
) | |||||
1.625% £ Euro Medium Term Note 2035 |
London Stock Exchange | ( |
) |
( |
) | |||||
6.375% US$ US Medium Term Note 2038 |
New York Stock Exchange | ( |
) |
( |
) | |||||
6.375% £ Euro Medium Term Note 2039 (1) |
London Stock Exchange | ( |
) |
( |
) | |||||
5.250% £ Euro Medium Term Note 2042 |
London Stock Exchange | ( |
) |
( |
) | |||||
4.200% US$ US Medium Term Note 2043 |
New York Stock Exchange | ( |
) |
( |
) | |||||
4.250% £ Euro Medium Term Note 2045 |
London Stock Exchange | ( |
) |
( |
) | |||||
Other long-term borrowings |
( |
) |
( |
) | ||||||
Lease liabilities |
( |
) |
( |
) | ||||||
( |
) |
( |
) | |||||||
Net debt |
( |
) |
( |
) |
(1) | Partially purchased and cancelled on 13 February 2023. |
218 |
GSK Annual Report 2022 |
2022 £m |
2021 £m |
|||||||
Rental payments due within one year |
||||||||
Rental payments due between one and two years |
||||||||
Rental payments due between two and three years |
||||||||
Rental payments due between three and four years |
||||||||
Rental payments due between four and five years |
||||||||
Rental payments due after five years |
||||||||
Total lease liabilities |
219 |
Pension and other post-employment costs |
2022 £m |
2021 (a) £m |
2020 (a) £m |
|||||||||
UK pension schemes |
||||||||||||
US pension schemes |
||||||||||||
Other overseas pension schemes |
||||||||||||
Unfunded post-retirement healthcare schemes |
( |
) | ||||||||||
Analysed as: |
||||||||||||
Funded defined benefit/hybrid pension schemes |
||||||||||||
Unfunded defined benefit pension schemes |
||||||||||||
Unfunded post-retirement healthcare schemes |
( |
) | ||||||||||
Defined benefit schemes |
||||||||||||
Defined contribution pension schemes |
||||||||||||
2022 £m |
2021 (a) £m |
2020 (a) £m |
||||||||||
Cost of sales |
||||||||||||
Selling, general and administration |
||||||||||||
Research and development |
||||||||||||
(a) | The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see Note 41). |
220 |
GSK Annual Report 2022 |
UK | US | |||||||||||||||
Male Years |
Female Years |
Male Years |
Female Years |
|||||||||||||
Current |
||||||||||||||||
Projected for 2042 |
UK | US | Rest of World | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 % pa |
2021 % pa |
2020 % pa |
2022 % pa |
2021 % pa |
2020 % pa |
2022 % pa |
2021 % pa |
2020 % pa |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rate of increase of future earnings |
n/a |
n/a |
n/a | n/a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected pension increases |
n/a |
n/a | n/a | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash balance credit/conversion rate |
n/a |
n/a | n/a | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inflation rate |
221 |
Pensions |
Post-retirement benefits |
|||||||||||||||||||
2022 |
UK £m |
US £m |
Rest of World £m |
Group £m |
Group £m |
|||||||||||||||
Amounts charged to operating profit |
||||||||||||||||||||
Current service cost |
||||||||||||||||||||
Past service cost |
||||||||||||||||||||
Net interest cost |
( |
) | ||||||||||||||||||
Gains from settlements |
( |
) | ( |
) |
||||||||||||||||
Expenses |
( |
) | ||||||||||||||||||
Remeasurement gains/(losses) recorded in the statement of comprehensive income (1) |
( |
) | ( |
) |
Pensions | Post-retirement benefits |
|||||||||||||||||||
2021 (2) |
UK £m |
US £m |
Rest of World £m |
Group £m |
Group £m |
|||||||||||||||
Amounts charged to operating profit |
||||||||||||||||||||
Current service cost |
||||||||||||||||||||
Past service cost/(credit) |
( |
) | ( |
) | ||||||||||||||||
Net interest (income)/cost |
||||||||||||||||||||
Gains from settlements |
( |
) | ( |
) | ||||||||||||||||
Expenses |
||||||||||||||||||||
Remeasurement gains/(losses) recorded in the statement of comprehensive income |
Pensions | Post-retirement benefits |
|||||||||||||||||||
2020 (2) |
UK £m |
US £m |
Rest of World £m |
Group £m |
Group £m |
|||||||||||||||
Amounts charged to operating profit |
||||||||||||||||||||
Current service cost |
||||||||||||||||||||
Past service cost/(credit) |
( |
) | ( |
) | ||||||||||||||||
Net interest (income)/cost |
||||||||||||||||||||
Gains from settlements |
( |
) | ( |
) | ||||||||||||||||
Expenses |
||||||||||||||||||||
( |
) | |||||||||||||||||||
Remeasurement losses recorded in the statement of comprehensive income |
( |
) | ( |
) | ( |
) | ( |
) |
(1) | These numbers do not include remeasurement gains/(losses) related to the demerged Consumer Healthcare business. |
(2) | The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see Note 41). |
222 |
GSK Annual Report 2022 |
2022 £m |
2021 £m |
2020 £m |
||||||||||
Recognised in Other non-current assets: |
||||||||||||
Pension schemes in surplus |
||||||||||||
Recognised in Pensions and other post-employment benefits: |
||||||||||||
Pension schemes in deficit |
( |
) |
( |
) | ( |
) | ||||||
Post-retirement benefits |
( |
) |
( |
) | ( |
) | ||||||
( |
) |
( |
) | ( |
) |
At 31 December 2022 |
UK £m |
US £m |
Rest of World £m |
Group £m |
||||||||||||||
Equities: |
– listed | |||||||||||||||||
– unlisted | – | – | ||||||||||||||||
Multi-asset funds |
– | – | ||||||||||||||||
Property: |
– listed | – | – | |||||||||||||||
– unlisted | ||||||||||||||||||
Corporate bonds: |
– listed | |||||||||||||||||
– unlisted | – | – | ||||||||||||||||
Government bonds: |
– listed | |||||||||||||||||
Insurance contracts |
– | |||||||||||||||||
Other (liabilities)/assets |
( |
) | ( |
) | ||||||||||||||
Fair value of assets |
||||||||||||||||||
Present value of scheme obligations |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Net surplus/(obligation) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Included in Other non-current assets |
– | |||||||||||||||||
Included in Pensions and other post-employment benefits |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Actual return on plan assets |
( |
) | ( |
) | ( |
) | ( |
) |
223 |
At 31 December 2021 |
UK £m |
US £m |
Rest of World £m |
Group £m |
||||||||||||||
Equities: |
– listed | |||||||||||||||||
– unlisted | – | – | ||||||||||||||||
Multi-asset funds |
– | – | ||||||||||||||||
Property: |
– listed | – | – | |||||||||||||||
– unlisted | ||||||||||||||||||
Corporate bonds: |
– listed | |||||||||||||||||
– unlisted | – | – | ||||||||||||||||
Government bonds: |
– listed | |||||||||||||||||
Insurance contracts |
– | |||||||||||||||||
Other (liabilities)/assets |
( |
) | ||||||||||||||||
Fair value of assets |
||||||||||||||||||
Asset ceiling restrictions |
– | – | ( |
) | ( |
) | ||||||||||||
Present value of scheme obligations |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Net surplus/(obligation) |
( |
) | ( |
) | ( |
) | ||||||||||||
Included in Other non-current assets |
– | |||||||||||||||||
Included in Pensions and other post-employment benefits |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
( |
) | ( |
) | ( |
) | |||||||||||||
Actual return on plan assets |
At 31 December 2020 |
UK £m |
US £m |
Rest of World £m |
Group £m |
||||||||||||||
Equities: |
– listed | |||||||||||||||||
– unlisted | – | – | ||||||||||||||||
Multi-asset funds |
– | – | ||||||||||||||||
Property: |
– listed | – | – | |||||||||||||||
– unlisted | ||||||||||||||||||
Corporate bonds: |
– listed | |||||||||||||||||
– unlisted | – | – | ||||||||||||||||
Government bonds: |
– listed | |||||||||||||||||
Insurance contracts |
– | |||||||||||||||||
Other (liabilities)/assets |
( |
) | ||||||||||||||||
Fair value of assets |
||||||||||||||||||
Present value of scheme obligations |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Net surplus/(obligation) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Included in Other non-current assets |
– | |||||||||||||||||
Included in Pensions and other post-employment benefits |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Actual return on plan assets |
224 |
GSK Annual Report 2022 |
Pensions |
Post-retirement benefits |
|||||||||||||||||||
Movements in fair values of assets |
UK £m |
US £m |
Rest of World £m |
Group £m |
Group £m |
|||||||||||||||
Assets at 1 January 2020 |
– |
|||||||||||||||||||
Exchange adjustments |
– | ( |
) | – |
||||||||||||||||
Interest income |
– |
|||||||||||||||||||
Expenses |
( |
) | ( |
) | – | ( |
) |
– |
||||||||||||
Settlements and curtailments |
– | – | ( |
) | ( |
) |
– |
|||||||||||||
Remeasurement |
– |
|||||||||||||||||||
Employer contributions |
||||||||||||||||||||
Scheme participants’ contributions |
– | |||||||||||||||||||
Benefits paid |
( |
) | ( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Assets at 31 December 2020 |
– |
|||||||||||||||||||
Exchange adjustments |
– | ( |
) | ( |
) |
– |
||||||||||||||
Interest income |
– |
|||||||||||||||||||
Expenses |
( |
) | ( |
) | – | ( |
) |
– |
||||||||||||
Settlements and curtailments |
– | – | ( |
) | ( |
) |
– |
|||||||||||||
Remeasurement |
– |
|||||||||||||||||||
Employer contributions |
||||||||||||||||||||
Scheme participants’ contributions |
– | |||||||||||||||||||
Benefits paid |
( |
) | ( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Assets at 31 December 2021 |
– |
|||||||||||||||||||
Exchange adjustments |
||||||||||||||||||||
Interest income |
||||||||||||||||||||
Expenses |
( |
) | ( |
) | ( |
) |
||||||||||||||
Settlements and curtailments |
( |
) | ( |
) |
||||||||||||||||
Remeasurement |
( |
) | ( |
) | ( |
) | ( |
) |
||||||||||||
Employer contributions |
||||||||||||||||||||
Scheme participants’ contributions |
||||||||||||||||||||
Transfer to assets held for sale/distribution |
( |
) | ( |
) |
||||||||||||||||
Benefits paid |
( |
) | ( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Assets at 31 December 2022 |
225 |
Scottish Limited Partnership | General Partner | Limited Partners | ||||
GSK (No. 1) Scottish Limited Partnership | GSK GP1 Ltd | GSK LP Ltd | Berkeley Square Pension Trustee Company Ltd acting on behalf of the GSK Pension Scheme | |||
GSK (No. 2) Scottish Limited Partnership | GSK GP1 Ltd | GSK LP Ltd | Berkeley Square Pension Trustee Company Ltd acting on behalf of the GSK Pension Fund | |||
GSK (No. 3) Scottish Limited Partnership | GSK GP2 Ltd | GSK LP Ltd | SmithKline Beecham Pension Plan Trustee Ltd acting on behalf of the SmithKline Beecham Pension Plan |
Pensions |
Post-retirement benefits |
|||||||||||||||||||
Movements in defined benefit obligations |
UK £m |
US £m |
Rest of World £m |
Group £m |
Group £m |
|||||||||||||||
Obligations at 1 January 2020 |
( |
) | ( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Exchange adjustments |
– | ( |
) | ( |
) |
|||||||||||||||
Disposals |
– | – | – | – |
||||||||||||||||
Service cost |
( |
) | ( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Past service cost |
( |
) | ( |
) | ( |
) |
||||||||||||||
Interest cost |
( |
) | ( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Settlements and curtailments |
– | – | ||||||||||||||||||
Remeasurement |
( |
) | ( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Scheme participants’ contributions |
( |
) | – | ( |
) | ( |
) |
( |
) | |||||||||||
Benefits paid |
||||||||||||||||||||
Obligations at 31 December 2020 |
( |
) | ( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Exchange adjustments |
( |
) | ||||||||||||||||||
Service cost |
( |
) | ( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Past service cost |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||||
Interest cost |
( |
) | ( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Settlements and curtailments |
||||||||||||||||||||
Remeasurement |
||||||||||||||||||||
Scheme participants’ contributions |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||||
Benefits paid |
||||||||||||||||||||
Obligations at 31 December 2021 |
( |
) | ( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Exchange adjustments |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||||
Service cost |
( |
) | ( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Past service cost |
( |
) | ( |
) |
||||||||||||||||
Interest cost |
( |
) | ( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Settlements and curtailments |
||||||||||||||||||||
Remeasurement |
||||||||||||||||||||
Scheme participants’ contributions |
( |
) | ( |
) |
( |
) | ||||||||||||||
Transfer to assets held for sale/distribution |
||||||||||||||||||||
Benefits paid |
||||||||||||||||||||
Obligations at 31 December 2022 |
( |
) | ( |
) | ( |
) | ( |
) |
( |
) |
226 |
GSK Annual Report 2022 |
2022 £m |
2021 £m |
2020 £m |
||||||||||
Funded |
( |
) |
( |
) |
( |
) | ||||||
Unfunded |
( |
) |
( |
) |
( |
) | ||||||
( |
) |
( |
) |
( |
) |
2022 £m |
2021 £m |
2020 £m |
||||||||||
At 1 January |
( |
) |
( |
) |
( |
) | ||||||
Exchange adjustments |
( |
) |
( |
) | ||||||||
Service cost |
( |
) |
( |
) |
( |
) | ||||||
Past service cost |
( |
) |
( |
) |
( |
) | ||||||
Interest cost |
( |
) |
( |
) |
( |
) | ||||||
Settlements and curtailments |
||||||||||||
Remeasurements: |
||||||||||||
Return on plan assets, excluding amounts included in interest |
( |
) |
||||||||||
(Loss)/gain from change in demographic assumptions |
( |
) |
||||||||||
Gain/(loss) from change in financial assumptions |
( |
) | ||||||||||
Experience (loss)/gain |
( |
) |
( |
) |
||||||||
Employer contributions |
||||||||||||
Transfer to assets held for sale/distribution |
( |
) |
||||||||||
Expenses |
( |
) |
( |
) |
( |
) | ||||||
At 31 December |
( |
) |
( |
) |
( |
) |
2022 £m |
2021 £m |
2020 £m |
||||||||||
Gain from change in demographic assumptions |
||||||||||||
Gain/(loss) from change in financial assumptions |
( |
) | ||||||||||
Experience gains |
( |
) |
||||||||||
( |
) |
2022 £m |
2021 (1) £m |
2020 (1) £m |
||||||||||
Active |
||||||||||||
Retired |
||||||||||||
Deferred |
||||||||||||
2022 £m |
2021 (1) £m |
2020 (1) £m |
||||||||||
Active |
||||||||||||
Retired |
||||||||||||
Deferred |
||||||||||||
2022 years |
2021 years |
2020 years |
||||||||||
Pension benefits |
||||||||||||
Post-retirement benefits |
(1) | Membership numbers are not restated as the disclosure relates to the post-retirement benefit obligations. |
227 |
0.25% increase £m |
0.25% decrease £m |
|||||||||||
Discount rate |
||||||||||||
(Decrease)/increase in annual pension cost |
( |
) | ||||||||||
Increase/(decrease) in annual post-retirement benefits cost |
( |
) | ||||||||||
(Decrease)/increase in pension obligation |
( |
) | ||||||||||
(Decrease)/increase in post-retirement benefits obligation |
( |
) |
0.75% increase £m |
0.75% decrease £m |
|||||||||||
(Decrease)/increase in annual pension cost |
( |
) | ||||||||||
Increase/(decrease) in annual post-retirement benefits cost |
( |
) | ||||||||||
(Decrease)/increase in pension obligation |
( |
) | ||||||||||
(Decrease)/increase in post-retirement benefits obligation |
( |
) |
0.25% increase £m |
0.25% decrease £m |
|||||||||||
Inflation rate |
||||||||||||
Increase/(decrease) in annual pension cost |
( |
) | ||||||||||
Increase/(decrease) in pension obligation |
( |
) |
0.75% increase £m |
0.75% decrease £m |
|||||||||||
Increase/(decrease) in annual pension cost |
( |
) | ||||||||||
Increase/(decrease) in pension obligation |
( |
) |
1 year increase £m |
||||
Life expectancy |
||||
Increase in annual pension cost |
||||
Increase in annual post-retirement benefits cost |
||||
Increase in pension obligation |
||||
Increase in post-retirement benefits obligation |
1% increase £m |
||||
Rate of future healthcare inflation |
||||
Increase in annual post-retirement benefits cost |
||||
Increase in post-retirement benefits obligation |
228 |
GSK Annual Report 2022 |
Legal and other disputes £m |
Major restructuring programmes £m |
Employee related provisions £m |
Other provisions £m |
Total £m |
||||||||||||||||
At 1 January 2022 |
||||||||||||||||||||
Exchange adjustments |
||||||||||||||||||||
Charge for the year |
||||||||||||||||||||
Reversed unused |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Unwinding of discount |
||||||||||||||||||||
Utilised |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Transfer to assets held for sale/distribution |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Additions through business combinations |
||||||||||||||||||||
Reclassifications and other movements |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Transfer to Pension obligations |
( |
) | ( |
) | ||||||||||||||||
At 31 December 2022 |
||||||||||||||||||||
To be settled within one year |
||||||||||||||||||||
To be settled after one year |
||||||||||||||||||||
At 31 December 2022 |
229 |
230 |
GSK Annual Report 2022 |
Shionogi- ViiV Healthcare £m |
Affinivax £m |
Novartis Vaccines £m |
Other £m |
Total £m |
||||||||||||||||
At 1 January 2020 |
– | |||||||||||||||||||
Remeasurement through income statement |
– | – | ||||||||||||||||||
Cash payments: operating cash flows |
( |
) | – | ( |
) | – | ( |
) | ||||||||||||
Cash payments: investing activities |
( |
) | – | ( |
) | ( |
) | ( |
) | |||||||||||
At 31 December 2021 |
– | |||||||||||||||||||
Remeasurement through income statement |
– | |||||||||||||||||||
Cash payments: operating cash flows |
( |
) | – | ( |
) | – | ( |
) | ||||||||||||
Cash payments: investing activities |
( |
) | – | ( |
) | – | ( |
) | ||||||||||||
At 31 December 2021 |
– | |||||||||||||||||||
Remeasurement through income statement |
( |
) | ||||||||||||||||||
Exchange movement through reserves |
– | – | – | |||||||||||||||||
Initial recognition from business combinations |
– | – | ||||||||||||||||||
Cash payments: operating cash flows |
( |
) | ( |
) | ( |
) | ||||||||||||||
Cash payments: investing activities |
( |
) | ( |
) | ( |
) | ||||||||||||||
At 31 December 2022 |
2022 |
2021 | |||||||||||||||||||
Increase/(decrease) in financial liability and loss/(gain) in Income statement |
Shionogi- ViiV Healthcare £m |
Affinivax £m |
Novartis Vaccines £m |
Shionogi- ViiV Healthcare £m |
Novartis Vaccines £m |
|||||||||||||||
10% increase in sales forecasts* |
n/a |
|||||||||||||||||||
15% increase in sales forecasts* |
n/a |
|||||||||||||||||||
10% decrease in sales forecasts* |
( |
) |
n/a |
( |
) |
( |
) | ( |
) | |||||||||||
15% decrease in sales forecasts* |
( |
) |
n/a |
( |
) |
( |
) | ( |
) | |||||||||||
1% increase in discount rate |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ||||||||||
1.5% increase in discount rate |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ||||||||||
1% decrease in discount rate |
||||||||||||||||||||
1.5% decrease in discount rate |
||||||||||||||||||||
10 cent appreciation of US Dollar |
||||||||||||||||||||
15 cent appreciation of US Dollar |
||||||||||||||||||||
10 cent depreciation of US Dollar |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ||||||||||
15 cent depreciation of US Dollar |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ||||||||||
10 cent appreciation of Euro |
n/a |
|||||||||||||||||||
15 cent appreciation of Euro |
n/a |
|||||||||||||||||||
10 cent depreciation of Euro |
( |
) |
n/a |
( |
) |
( |
) | ( |
) | |||||||||||
15 cent depreciation of Euro |
( |
) |
n/a |
( |
) |
( |
) | ( |
) | |||||||||||
10% increase in probability of milestone success |
n/a |
n/a | ||||||||||||||||||
10% decrease in probability of milestone success |
n/a |
( |
) |
( |
) |
n/a | ( |
) |
* | The sales forecast is for ViiV Healthcare sales only in respect of the Shionogi-ViiV Healthcare contingent consideration. |
231 |
2022 £m |
2021 £m |
|||||||
Accruals |
||||||||
Deferred income |
||||||||
Other payables |
||||||||
Contractual obligations and commitments |
2022 £m |
2021 £m |
||||||
Contracted for but not provided in the financial statements: |
||||||||
Intangible assets |
||||||||
Property, plant and equipment |
||||||||
Investments |
||||||||
Purchase commitments |
||||||||
Pensions and post-retirement benefits |
||||||||
Interest on loans |
||||||||
Future finance charges on leases |
||||||||
Lease contracts that have not yet commenced |
||||||||
232 |
GSK Annual Report 2022 |
Ordinary shares of 25p each pre-share consolidation Ordinary shares of 31 1 ⁄4 p each post-share consolidation |
Share premium |
|||||||||||
Number | £m | £m | ||||||||||
Share capital issued and fully paid: |
||||||||||||
At 1 January 2020 |
||||||||||||
Issued under employee share schemes |
– | |||||||||||
Ordinary shares acquired by ESOP Trusts |
– | – | ||||||||||
At 31 December 2020 |
||||||||||||
Issued under employee share schemes |
||||||||||||
Ordinary shares acquired by ESOP Trusts |
||||||||||||
At 31 December 2021 |
||||||||||||
Impact of share consolidation |
( |
) | – | – | ||||||||
Issued under employee share schemes |
||||||||||||
Ordinary shares acquired by ESOP Trusts |
||||||||||||
At 31 December 2022 |
Net translation exchange included in: | ||||||||||||||||
Retained earnings £m |
Fair value reserve £m |
Non- controlling interests £m |
Total translation exchange £m |
|||||||||||||
At 1 January 2020 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Exchange movements on overseas net assets and net investment hedges |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Reclassification of exchange movements on liquidation or disposal of overseas subsidiaries and associates |
– | – | ||||||||||||||
At 31 December 2020 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Exchange movements on overseas net assets and net investment hedges |
( |
) | ( |
) | ( |
) | ||||||||||
Reclassification of exchange movements on liquidation or disposal of overseas subsidiaries and associates |
( |
) | – | – | ( |
) | ||||||||||
At 31 December 2021 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Exchange movements on overseas net assets and net investment hedges |
( |
) | ||||||||||||||
Reclassification of exchange movements on liquidation or disposal of overseas subsidiaries and associates |
||||||||||||||||
Movement attributable to continuing operations |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Movement attributable to discontinued operations (a) |
– | |||||||||||||||
At 31 December 2022 |
( |
) | ( |
) | ( |
) |
233 |
GSK Annual Report 2022 |
2022 |
Retained earnings £m |
Other reserves £m |
Non- controlling interests £m |
Total £m |
||||||||||||
Items that may be subsequently reclassified to income statement: |
||||||||||||||||
Exchange movements on overseas net assets and net investment hedges |
||||||||||||||||
Reclassification of exchange movements on liquidation or disposal of subsidiaries and associates |
||||||||||||||||
Fair value movements on cash flow hedges |
( |
) |
( |
) | ||||||||||||
Tax on fair value movements on cash flow hedges |
||||||||||||||||
Reclassification of cash flow hedges to income |
||||||||||||||||
Items that will not be reclassified to income statement: |
||||||||||||||||
Exchange movements on overseas net assets of non-controlling interests |
( |
) |
( |
) | ||||||||||||
Fair value movements on equity investments |
( |
) |
( |
) | ||||||||||||
Tax on fair value movements on equity investments |
||||||||||||||||
Remeasurement on defined benefit plans |
( |
) |
( |
) | ||||||||||||
Tax on remeasurement defined benefit plans |
||||||||||||||||
Fair value movements on cash flow hedges |
( |
) |
( |
) | ||||||||||||
Other comprehensive (expense)/income for the year from continuing operations |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Other comprehensive (expense)/income for the year from discontinued operations |
( |
) |
||||||||||||||
Total other comprehensive (expense)/income for the year |
( |
) |
( |
) |
( |
) |
( |
) |
2021 |
Retained earnings £m |
Other reserves £m |
Non- controlling interests £m |
Total £m |
||||||||||||
Items that may be subsequently reclassified to income statement: |
||||||||||||||||
Exchange movements on overseas net assets and net investment hedges |
( |
) |
– |
– |
( |
) | ||||||||||
Reclassification of exchange movements on liquidation or disposal of subsidiaries and associates |
( |
) |
– |
– |
( |
) | ||||||||||
Fair value movements on cash flow hedges |
– |
– |
||||||||||||||
Tax on fair value movements on cash flow hedges |
– |
( |
) |
– |
( |
) | ||||||||||
Reclassification of cash flow hedges to income statement |
– |
– |
||||||||||||||
Items that will not be reclassified to income statement: |
||||||||||||||||
Exchange movements on overseas net assets of non-controlling interests |
– |
– |
( |
) |
( |
) | ||||||||||
Fair value movements on equity investments |
– |
( |
) |
– |
( |
) | ||||||||||
Tax on fair value movements on equity investments |
– |
– |
||||||||||||||
Remeasurement losses on defined benefit plans |
– |
– |
||||||||||||||
Tax on remeasurement defined benefit plans |
( |
) |
– |
– |
( |
) | ||||||||||
Other comprehensive (expense)/income for the year |
( |
) |
( |
) |
( |
) |
2020 |
Retained earnings £m |
Other reserves £m |
Non- controlling interests £m |
Total £m |
||||||||||||
Items that may be subsequently reclassified to income statement: |
||||||||||||||||
Exchange movements on overseas net assets and net investment hedges |
( |
) |
( |
) |
– |
( |
) | |||||||||
Reclassification of exchange movements on liquidation or disposal of subsidiaries and associates |
– |
– |
||||||||||||||
Fair value movements on cash flow hedges |
– |
( |
) |
– |
( |
) | ||||||||||
Tax on fair value movements on cash flow hedges |
– |
( |
) |
– |
( |
) | ||||||||||
Reclassification of cash flow hedges to income statement |
– |
– |
||||||||||||||
Items that will not be reclassified to income statement: |
||||||||||||||||
Exchange movements on overseas net assets of non-controlling interests |
– |
– |
( |
) |
( |
) | ||||||||||
Fair value movements on equity investments |
– |
– |
||||||||||||||
Tax on fair value movements on equity investments |
– |
( |
) |
– |
( |
) | ||||||||||
Remeasurement gains on defined benefit plans |
( |
) |
– |
– |
( |
) | ||||||||||
Tax on remeasurement defined benefit plans |
– |
– |
||||||||||||||
Other comprehensive (expense)/income for the year |
( |
) |
( |
) |
234 |
GSK Annual Report 2022 |
ESOP Trust shares £m |
Fair value reserve £m |
Cash flow hedge reserve £m |
Other reserves £m |
Total £m |
||||||||||||||||
At 1 January 2020 |
( |
) |
( |
) |
||||||||||||||||
Exchange adjustments |
– |
– |
– |
|||||||||||||||||
Transferred to retained earnings in the year on disposal of equity investments |
– |
( |
) |
– |
– |
( |
) | |||||||||||||
Net fair value movement in the year |
– |
– |
||||||||||||||||||
Ordinary shares acquired by ESOP Trusts |
( |
) |
– |
– |
– |
( |
) | |||||||||||||
Write-down of shares held by ESOP Trusts |
– |
– |
– |
|||||||||||||||||
At 31 December 2020 |
( |
) |
( |
) |
||||||||||||||||
Exchange adjustments |
( |
) |
– |
– |
– |
( |
) | |||||||||||||
Transferred to income and expenses in the year on impairments of equity investments |
||||||||||||||||||||
Transferred to retained earnings in the year on disposal of equity investments |
– |
( |
) |
– |
– |
( |
) | |||||||||||||
Net fair value movement in the year |
– |
( |
) |
– |
( |
) | ||||||||||||||
At 31 December 2021 |
( |
) |
( |
) |
||||||||||||||||
Exchange adjustments |
( |
) |
||||||||||||||||||
Transferred to retained earnings in the year on disposal of equity investments |
( |
) |
( |
) | ||||||||||||||||
Balances derecognised on demerger |
( |
) |
( |
) | ||||||||||||||||
Net fair value movement in the year |
( |
) |
( |
) | ||||||||||||||||
Ordinary shares acquired by ESOP Trusts |
( |
) |
( |
) | ||||||||||||||||
Write-down of shares held by ESOP Trusts |
||||||||||||||||||||
At 31 December 2022 |
( |
) |
( |
) |
( |
) |
2022 £m |
2021 £m |
2020 £m |
||||||||||
Turnover |
||||||||||||
Profit after taxation |
||||||||||||
Other comprehensive income/(expense) |
( |
) |
||||||||||
Total comprehensive income |
2022 £m |
2021 £m |
|||||||||||
Non-current assets |
||||||||||||
Current assets |
||||||||||||
Total assets |
||||||||||||
Current liabilities |
( |
) |
( |
) |
||||||||
Non-current liabilities |
( |
) |
( |
) |
||||||||
Total liabilities |
( |
) |
( |
) |
||||||||
Net liabilities |
( |
) |
( |
) |
2022 £m |
2021 £m |
2020 £m |
||||||||||
Net cash inflow from operating activities |
||||||||||||
Net cash outflow from investing activities |
( |
) |
( |
) |
( |
) | ||||||
Net cash outflow from financing activities |
( |
) |
( |
) |
( |
) | ||||||
Increase/(decrease) in cash and bank overdrafts in the year |
( |
) |
235 |
2022 £m |
2021 £m |
2020 £m |
||||||||||
Share of profit for the year attributable to non-controlling interest |
||||||||||||
Dividends paid to non-controlling interest |
||||||||||||
Non-controlling interest in the Consolidated balance sheet |
( |
) |
( |
) |
( |
) |
2021 £m |
||||
Non-current assets |
||||
Current assets |
||||
Total assets |
||||
Current liabilities |
( |
) | ||
Non-current liabilities |
( |
) | ||
Total liabilities |
( |
) | ||
Net assets |
2021 £m |
2020 £m |
|||||||
Non-controlling interest in the Consolidated balance sheet |
236 |
GSK Annual Report 2022 |
Sierra Oncology £m |
Affinivax £m |
Total £m |
||||||||||
Net assets acquired |
||||||||||||
Intangible assets |
||||||||||||
Property, plant and equipment |
||||||||||||
Right of use assets |
||||||||||||
Inventory |
||||||||||||
Trade and other receivables |
||||||||||||
Cash and cash equivalents |
||||||||||||
Lease liabilities |
( |
) |
( |
) |
( |
) | ||||||
Trade and other payables |
( |
) |
( |
) |
( |
) | ||||||
Taxation |
( |
) |
( |
) |
( |
) | ||||||
Goodwill |
||||||||||||
Total |
||||||||||||
Total cash |
||||||||||||
Fair value of contingent consideration |
237 |
2022 £m |
||||
Fair value of the Consumer Healthcare business distributed (54.5%) |
||||
Fair value of the retained ownership in Haleon plc (13.5%) |
||||
Total fair value |
||||
Carrying amount of the net assets and liabilities distributed/de-recognised |
( |
) | ||
Carrying amount of the non-controlling interest de-recognised |
||||
Gain on demerger before exchange movements and transaction costs |
||||
Reclassification of exchange movements and net investment hedge movements on disposal of overseas subsidiaries |
||||
Total gain on the demerger of Consumer Healthcare |
238 |
GSK Annual Report 2022 |
Total results |
2022 £m |
2021 £m |
2020 £m |
|||||||||
Turnover |
||||||||||||
Expense |
( |
) |
( |
) |
( |
) | ||||||
Profit before tax |
||||||||||||
Taxation |
( |
) |
( |
) |
( |
) | ||||||
Tax rate % |
||||||||||||
(Loss)/profit after taxation from discontinued operations: Consumer Healthcare |
||||||||||||
Other gains/(losses) on demerger |
||||||||||||
Remeasurement of discontinued operations distributed to shareholders on demerger |
||||||||||||
Profit after taxation on demerger of discontinued operations |
||||||||||||
Non-controlling interest in discontinued operations |
||||||||||||
Earnings attributable to shareholders from discontinued operations |
||||||||||||
Earnings per share from discontinued operations |
Cash flows |
Business acquisitions £m |
Business disposals - demerger £m |
Business disposals - other £m |
|||||||||
Cash consideration |
( |
) |
||||||||||
Net deferred consideration paid |
( |
) | ||||||||||
Cash and cash equivalents (divested)/acquired |
( |
) |
( |
) | ||||||||
( |
) |
( |
) |
( |
) | |||||||
Transaction costs paid |
( |
) |
( |
) |
||||||||
Cash (outflow)/inflow |
( |
) |
( |
) |
( |
) |
Total £m |
||||
Consideration: |
||||
Cash consideration including currency forwards, purchase adjustments and deferred consideration |
||||
Total |
||||
Net assets sold: |
||||
Property, plant and equipment |
||||
Cash and cash equivalents |
||||
Other net assets |
||||
Total |
||||
Costs: |
||||
Deal costs |
( |
) | ||
Reclassification of exchange from other comprehensive income |
||||
Gain on disposals in 2021 |
239 |
Business disposals £m |
Associates and joint ventures disposals £m |
|||||||
Cash consideration received |
||||||||
Net deferred consideration paid |
( |
) | ||||||
Transaction costs |
( |
) | ||||||
Cash and cash equivalents (divested)/acquired |
( |
) | ||||||
Cash (outflow)/inflow |
( |
) |
Total £m |
||||
Net assets acquired: |
||||
Intangible assets |
||||
Property, plant and equipment |
||||
Inventory |
||||
Trade and other receivables |
||||
Cash and cash equivalents |
||||
Trade and other payables |
( |
) | ||
Non-controlling interest |
( |
) | ||
Goodwill |
||||
Non-cash consideration (settlement of a promissory note) |
||||
Total consideration |
240 |
GSK Annual Report 2022 |
Horlicks divestment £m |
Other (1) £m |
Total £m |
||||||||||
Consideration: |
||||||||||||
Cash consideration receivable including currency forwards and purchase adjustments |
||||||||||||
Equity investment in Hindustan Unilever Limited |
||||||||||||
Total |
||||||||||||
Net assets disposed: |
||||||||||||
Goodwill |
||||||||||||
Intangible assets |
||||||||||||
Property, plant and equipment |
||||||||||||
Inventory |
||||||||||||
Cash and cash equivalents |
||||||||||||
Other net (liabilities)/assets |
( |
) |
( |
) | ||||||||
Total |
||||||||||||
Costs: |
||||||||||||
Transaction costs |
||||||||||||
Derivative |
||||||||||||
Reclassification of exchange from other comprehensive income |
||||||||||||
Total |
||||||||||||
Gain on disposals |
Cash flows |
Business acquisitions £m |
Business disposals £m |
Associates and joint ventures investments £m |
|||||||||
Cash consideration received/(paid) |
– |
( |
) | |||||||||
Net deferred consideration |
– |
( |
) |
– |
||||||||
Transaction costs |
( |
) |
( |
) |
– |
|||||||
Cash and cash equivalents acquired/(divested) |
( |
) |
– |
|||||||||
Cash (outflow)/inflow |
( |
) |
(1) | Other includes Consumer Healthcare disposals where the income statement impact is not restated. |
241 |
2022 £m |
2021 (1) £m |
2020 (1) £m |
||||||||||
Total profit after tax from continuing operations |
||||||||||||
Tax on profits |
||||||||||||
Share of after-tax profits of associates and joint ventures |
( |
) | ( |
) | ||||||||
Finance expense net of finance income |
||||||||||||
Depreciation |
||||||||||||
Amortisation of intangible assets |
||||||||||||
Impairment and assets written off |
||||||||||||
Profit on sale of businesses |
( |
) |
( |
) | ( |
) | ||||||
Profit on sale of intangible assets |
( |
) |
( |
) | ( |
) | ||||||
Loss on sale of investments in associates |
– | |||||||||||
Profit on sale of equity investments |
( |
) |
( |
) | ( |
) | ||||||
Changes in working capital: |
||||||||||||
Decrease/(increase)in inventories |
( |
) |
||||||||||
Increase in trade receivables |
( |
) |
( |
) | ( |
) | ||||||
Increase in trade payables |
||||||||||||
(Increase) in other receivables |
( |
) |
( |
) | ( |
) | ||||||
Contingent consideration paid (see Note 33) |
( |
) |
( |
) | ( |
) | ||||||
Other non-cash increase in contingent consideration liabilities |
||||||||||||
Increase in other payables |
( |
) |
||||||||||
Increase/(decrease) in pension and other provisions |
( |
) |
( |
) | ||||||||
Share-based incentive plans |
||||||||||||
Fair value adjustments |
( |
) |
( |
) | ||||||||
Other |
( |
) |
( |
) | ( |
) | ||||||
Operating cash flow from continuing operations |
||||||||||||
Operating cash flow from discontinued operations |
||||||||||||
Total cash generated from operations |
(1) | The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see Note 41). |
242 |
GSK Annual Report 2022 |
2022 £m |
2021 £m |
2020 £m |
||||||||||
Net debt, at beginning of year, as adjusted |
( |
) |
( |
) | ( |
) | ||||||
Increase in cash and bank overdrafts |
( |
) |
( |
) | ( |
) | ||||||
Increase/(decrease) in liquid investments |
( |
) |
( |
) | ||||||||
Increase in long-term loans |
( |
) |
– | ( |
) | |||||||
Repayment of short-term Notes |
||||||||||||
Repayment of/(increase in) other short-term loans |
( |
) |
( |
) | ||||||||
Repayment of medium term notes (MTNs) |
– | – | ||||||||||
Repayment of lease liabilities |
||||||||||||
Debt of subsidiary undertakings acquired |
( |
) |
– | – | ||||||||
Exchange adjustments |
( |
) |
( |
) | ||||||||
Other non-cash movements |
( |
) |
( |
) | ( |
) | ||||||
Decrease/(increase) in net debt from continuing operations |
( |
) |
( |
) | ||||||||
Decrease/(increase) in net debt from discontinued operations |
||||||||||||
Total net debt at end of year |
( |
) |
( |
) | ( |
) |
Analysis of changes in net debt |
At 1 January 2022 £m |
Exchange £m |
Other £m |
Interest expense £m |
Change in fair value £m |
Reclass- ifications £m |
Demerger £m |
Cash flow £m |
At 31 December 2022 £m |
|||||||||||||||||||||||||||
Liquid investments |
– | – | – | – | ( |
) | ||||||||||||||||||||||||||||||
Cash and cash equivalents |
– | – | – | ( |
) | |||||||||||||||||||||||||||||||
Overdrafts |
( |
) | – | – | – | – | ( |
) | ||||||||||||||||||||||||||||
Liquid investments attributed to continuing operations |
– | – | – | ( |
) | |||||||||||||||||||||||||||||||
Liquid investments attributed to discontinued operations |
– | – | – | ( |
) | – |
||||||||||||||||||||||||||||||
– | – | – | – | ( |
) | |||||||||||||||||||||||||||||||
Debt due within one year: |
||||||||||||||||||||||||||||||||||||
Commercial paper |
( |
) | ( |
) | – | – | – | – | – | ( |
) | ( |
) | |||||||||||||||||||||||
European/US MTN & Bank facilities |
( |
) | ( |
) | – | – | – | ( |
) | – | ( |
) | ||||||||||||||||||||||||
Lease liabilities |
( |
) | ( |
) | – | – | ( |
) | – | ( |
) | |||||||||||||||||||||||||
Other |
( |
) | ( |
) | ( |
) | – | – | – | ( |
) | ( |
) | |||||||||||||||||||||||
Debt due within one year attributed to continuing operations |
( |
) | ( |
) | ( |
) | – | – | ( |
) | – | ( |
) | |||||||||||||||||||||||
Debt due within one year attributed to discontinued operations |
( |
) | ( |
) | ( |
) | – | – | ( |
) | ( |
) | – |
|||||||||||||||||||||||
( |
) | ( |
) | ( |
) | – | – | ( |
) | ( |
) | |||||||||||||||||||||||||
Debt due after one year: |
||||||||||||||||||||||||||||||||||||
European/US MTN & Bank facilities |
( |
) | ( |
) | – | ( |
) | – | – | ( |
) | |||||||||||||||||||||||||
Lease liabilities |
( |
) | ( |
) | ( |
) | – | – | – | – | ( |
) | ||||||||||||||||||||||||
Debt due after one year attributed to continuing operations |
( |
) | ( |
) | ( |
) | ( |
) | – | – | ( |
) | ||||||||||||||||||||||||
Debt due after one year attributed to discontinued operations |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | – |
|||||||||||||||||||||||||
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
Net debt |
( |
) | ( |
) | ( |
) | ( |
) | – | ( |
) | ( |
) | |||||||||||||||||||||||
Interest payable |
( |
) | ( |
) | ( |
) | ( |
) | – | – | ( |
) | ||||||||||||||||||||||||
Derivative financial instruments |
( |
) | – | – | – | – | – | ( |
) | |||||||||||||||||||||||||||
Total liabilities from financing activities* |
( |
) | ( |
) | ( |
) | ( |
) | – | ( |
) | ( |
) |
* | Excluding cash and cash equivalents, overdrafts and liquid investments. |
243 |
Analysis of changes in net debt |
At 1 January 2021 £m |
Exchange £m |
Other £m |
Interest expense £m |
Change in fair value £m |
Reclass- ifications £m |
Cash flow £m |
At 31 December 2021 £m |
||||||||||||||||||||||||
Liquid investments |
– | – | – | – | ( |
) | ||||||||||||||||||||||||||
Cash and cash equivalents |
( |
) | ( |
) | – | – | – | ( |
) | |||||||||||||||||||||||
Overdrafts |
( |
) | – | – | – | – | – | ( |
) | |||||||||||||||||||||||
( |
) | ( |
) | – | – | – | ( |
) | ||||||||||||||||||||||||
Debt due within one year: |
||||||||||||||||||||||||||||||||
Commercial paper |
( |
) | – | – | – | – | ( |
) | ( |
) | ||||||||||||||||||||||
European/US MTN & Bank facilities |
( |
) | – | – | ( |
) | ( |
) | ||||||||||||||||||||||||
Lease liabilities |
( |
) | – | – | ( |
) | ( |
) | ||||||||||||||||||||||||
Other |
( |
) | ( |
) | – | – | – | ( |
) | ( |
) | |||||||||||||||||||||
( |
) | – | – | ( |
) | ( |
) | |||||||||||||||||||||||||
Debt due after one year: |
||||||||||||||||||||||||||||||||
European/US MTN & Bank facilities |
( |
) | – | ( |
) | – | – | ( |
) | |||||||||||||||||||||||
Lease liabilities |
( |
) | ( |
) | – | – | – | ( |
) | |||||||||||||||||||||||
( |
) | ( |
) | ( |
) | – | ( |
) | ||||||||||||||||||||||||
Net debt |
( |
) | ( |
) | ( |
) | – | – | ( |
) | ||||||||||||||||||||||
Interest payable |
( |
) | ( |
) | ( |
) | – | – | ( |
) | ||||||||||||||||||||||
Derivative financial instruments |
( |
) | – | – | – | – | ( |
) | ( |
) | ||||||||||||||||||||||
Total liabilities from financing activities* |
( |
) | ( |
) | ( |
) | – | ( |
) |
* | Excluding cash and cash equivalents, overdrafts and liquid investments. |
244 |
GSK Annual Report 2022 |
245 |
246 |
GSK Annual Report 2022 |
2022 |
AAA/Aaa £m |
AA/Aa £m |
A/A £m |
BBB/Baa £m |
BB+/Ba1 and below /unrated £m |
Total £m |
||||||||||||||||||
Bank balances and deposits |
– |
– |
||||||||||||||||||||||
US Treasury and Treasury repo only money market funds |
– |
– |
– |
– |
||||||||||||||||||||
Liquidity funds |
– |
– |
– |
– |
||||||||||||||||||||
Government securities |
– |
– |
– |
– |
||||||||||||||||||||
Third party financial derivatives |
– |
– |
– |
– |
||||||||||||||||||||
Total |
2021 |
AAA/Aaa £m |
AA/Aa £m |
A/A £m |
BBB/Baa £m |
BB+/Ba1 and below /unrated £m |
Total £m |
||||||||||||||||||
Bank balances and deposits |
– |
|||||||||||||||||||||||
US Treasury and Treasury repo only money market funds |
– |
– |
– |
– |
||||||||||||||||||||
Liquidity funds |
– |
– |
– |
– |
||||||||||||||||||||
Government securities |
– |
– |
– |
|||||||||||||||||||||
Third party financial derivatives |
– |
– |
– |
– |
||||||||||||||||||||
Total |
247 |
– | Other investments – equity investments traded in an active market determined by reference to the relevant stock exchange quoted bid price; other equity investments determined by reference to the current market value of similar instruments, recent financing rounds or the discounted cash flows of the underlying net assets |
– | Trade receivables carried at fair value – based on invoiced amount |
– | Interest rate swaps, foreign exchange forward contracts, swaps and options – based on the present value of contractual cash flows or option valuation models using market sourced data (exchange rates or interest rates) at the balance sheet date |
– | Cash and cash equivalents carried at fair value – based on net asset value of the funds |
– | Contingent consideration for business acquisitions and divestments – based on present values of expected future cash flows. |
– | Receivables and payables, including put options, carried at amortised cost – approximates to the carrying amount |
– | Liquid investments – approximates to the carrying amount |
– | Cash and cash equivalents carried at amortised cost – approximates to the carrying amount |
– | Long-term loans – based on quoted market prices (a level 1 fair value measurement) in the case of European and US Medium Term Notes; approximates to the carrying amount in the case of other fixed rate borrowings and floating rate bank loans |
– | Short-term loans, overdrafts and commercial paper – approximates to the carrying amount because of the short maturity of these instruments. |
248 |
GSK Annual Report 2022 |
2022 |
2021 | |||||||||||||||||||
Notes | Carrying value £m |
Fair value £m |
|
Carrying value £m |
|
Fair value £m |
| |||||||||||||
Financial assets measured at amortised cost: |
||||||||||||||||||||
Other non-current assets |
b | |||||||||||||||||||
Trade and other receivables |
b | |||||||||||||||||||
Liquid investments |
||||||||||||||||||||
Cash and cash equivalents |
||||||||||||||||||||
Financial assets measured at fair value through other comprehensive income (FVTOCI): |
||||||||||||||||||||
Other investments designated at FVTOCI |
a | |||||||||||||||||||
Trade and other receivables |
a,b | |||||||||||||||||||
Financial assets mandatorily measured at fair value through profit or loss (FVTPL): |
||||||||||||||||||||
Current equity investments and Other investments |
a | |||||||||||||||||||
Other non-current assets |
a,b | |||||||||||||||||||
Trade and other receivables |
a,b | |||||||||||||||||||
Held for trading derivatives that are not in a designated and effective hedging relationship |
a,d,e | |||||||||||||||||||
Cash and cash equivalents |
a | |||||||||||||||||||
Derivatives designated and effective as hedging instruments (fair value movements through Other comprehensive income) |
a,d,e | |||||||||||||||||||
Total financial assets |
||||||||||||||||||||
Financial liabilities measured at amortised cost: |
||||||||||||||||||||
Borrowings excluding obligations under lease liabilities: |
||||||||||||||||||||
– bonds in a designated hedging relationship |
d | ( |
) |
( |
) |
( |
) | ( |
) | |||||||||||
– other bonds |
( |
) |
( |
) |
( |
) | ( |
) | ||||||||||||
– bank loans and overdrafts |
( |
) |
( |
) |
( |
) | ( |
) | ||||||||||||
– commercial paper in a designated hedging relationship |
( |
) |
( |
) |
( |
) | ( |
) | ||||||||||||
– other commercial paper |
( |
) |
( |
) |
||||||||||||||||
– other borrowings |
( |
) |
( |
) |
( |
) | ( |
) | ||||||||||||
Total borrowings excluding lease liabilities |
f | ( |
) |
( |
) |
( |
) | ( |
) | |||||||||||
Trade and other payables |
c | ( |
) |
( |
) |
( |
) | ( |
) | |||||||||||
Other provisions |
d | ( |
) |
( |
) |
( |
) | ( |
) | |||||||||||
Other non-current liabilities |
c | ( |
) |
( |
) |
( |
) | ( |
) | |||||||||||
Financial liabilities mandatorily measured at fair value through profit or loss (FVTPL): |
||||||||||||||||||||
Contingent consideration liabilities |
a,c | ( |
) |
( |
) |
( |
) | ( |
) | |||||||||||
Held for trading derivatives that are not in a designated and effective hedging relationship |
a,d,e | ( |
) |
( |
) |
( |
) | ( |
) | |||||||||||
Derivatives designated and effective as hedging instruments (fair value movements through Other comprehensive income) |
a,d,e | ( |
) |
( |
) |
( |
) | ( |
) | |||||||||||
Total financial liabilities excluding lease liabilities |
( |
) |
( |
) |
( |
) | ( |
) | ||||||||||||
Net financial assets and financial liabilities excluding lease liabilities |
( |
) |
( |
) |
( |
) | ( |
) |
249 |
At 31 December 2022 |
Level 1 £m |
Level 2 £m |
Level 3 £m |
Total £m |
||||||||||||
Financial assets at fair value |
||||||||||||||||
Financial assets measured at fair value through other comprehensive income (FVTOCI): |
||||||||||||||||
Other investments designated at FVTOCI |
||||||||||||||||
Trade and other receivables |
||||||||||||||||
Financial assets mandatorily measured at fair value through profit or loss (FVTPL): |
||||||||||||||||
Current equity investments and Other investments |
||||||||||||||||
Other non-current assets |
||||||||||||||||
Trade and other receivables |
||||||||||||||||
Held for trading derivatives that are not in a designated and effective hedging relationship |
||||||||||||||||
Cash and cash equivalents |
||||||||||||||||
Derivatives designated and effective as hedging instruments (fair value movements through OCI) |
||||||||||||||||
Financial liabilities at fair value |
||||||||||||||||
Financial liabilities mandatorily measured at fair value through profit or loss (FVTPL): |
||||||||||||||||
Contingent consideration liabilities |
( |
) | ( |
) | ||||||||||||
Held for trading derivatives that are not in a designated and effective hedging relationship |
( |
) | ( |
) | ||||||||||||
Derivatives designated and effective as hedging instruments (fair value movements through OCI) |
( |
) | ( |
) | ||||||||||||
( |
) | ( |
) | ( |
) |
At 31 December 2021 |
Level 1 £m |
Level 2 £m |
Level 3 £m |
Total £m |
||||||||||||
Financial assets at fair value |
||||||||||||||||
Financial assets measured at fair value through other comprehensive income (FVTOCI): |
||||||||||||||||
Other investments designated at FVTOCI |
||||||||||||||||
Trade and other receivables |
||||||||||||||||
Financial assets mandatorily measured at fair value through profit or loss (FVTPL): |
||||||||||||||||
Other investments |
||||||||||||||||
Other non-current assets |
||||||||||||||||
Trade and other receivables |
||||||||||||||||
Held for trading derivatives that are not in a designated and effective hedging relationship |
||||||||||||||||
Cash and cash equivalents |
||||||||||||||||
Derivatives designated and effective as hedging instruments (fair value movements through OCI) |
||||||||||||||||
Financial liabilities at fair value |
||||||||||||||||
Financial liabilities mandatorily measured at fair value through profit or loss (FVTPL): |
||||||||||||||||
Contingent consideration liabilities |
( |
) | ( |
) | ||||||||||||
Held for trading derivatives that are not in a designated and effective hedging relationship |
( |
) | ( |
) | ||||||||||||
Derivatives designated and effective as hedging instruments (fair value movements through OCI) |
( |
) | ( |
) | ||||||||||||
( |
) | ( |
) | ( |
) |
250 |
GSK Annual Report 2022 |
2022 £m |
2021 £m |
|||||||
At 1 January |
( |
) |
( |
) | ||||
Exchange adjustments |
||||||||
Net losses recognised in the income statement |
( |
) |
( |
) | ||||
Net gains recognised in other comprehensive income |
||||||||
Contingent consideration related to business acquisitions in the period |
( |
) |
||||||
Settlement of contingent consideration liabilities |
||||||||
Additions |
||||||||
Disposals and settlements |
( |
) |
( |
) | ||||
Transfers from Level 3 |
( |
) | ||||||
At 31 December |
( |
) |
( |
) |
2022 |
2021 | |||||||||||||||||||||||||||||||||||||||||||||||
At FVTPL £m |
At FVTOCI £m |
Amortised cost £m |
Financial instruments £m |
Non- financial instruments £m |
Total £m |
At FVTPL £m |
At FVTOCI £m |
Amortised cost £m |
Financial instruments £m |
Non- financial instruments £m |
Total £m |
|||||||||||||||||||||||||||||||||||||
Trade and other receivables (Note 26) |
||||||||||||||||||||||||||||||||||||||||||||||||
Other non-current assets (Note 24) |
||||||||||||||||||||||||||||||||||||||||||||||||
251 |
2022 |
2021 | |||||||||||||||||||||||||||||||||||||||
At FVTPL £m |
Amortised cost £m |
Financial instruments £m |
Non- financial instruments £m |
Total £m |
At FVTPL £m |
Amortised cost £m |
Financial instruments £m |
Non- financial instruments £m |
Total £m |
|||||||||||||||||||||||||||||||
Trade and other payables (Note 29) |
( |
) | ( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Other provisions (Note 32) |
( |
) | ( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Contingent consideration liabilities (Note 33) |
( |
) | ( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Other non-current liabilities (Note 34) |
( |
) | ( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
( |
) | ( |
) | ( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
2022 Fair value |
2021 Fair value |
|||||||||||||||
Assets £m |
Liabilities £m |
Assets £m |
Liabilities £m |
|||||||||||||
Non-current |
||||||||||||||||
Cash flow hedges – Interest rate swap contracts (principal amount – £ |
( |
) | ||||||||||||||
Current |
||||||||||||||||
Cash flow hedges – Foreign exchange contracts (principal amount – £ |
( |
) | ||||||||||||||
Net investment hedges – Foreign exchange contracts (principal amount – £ |
( |
) |
( |
) | ||||||||||||
Derivatives designated and effective as hedging instruments |
( |
) |
( |
) | ||||||||||||
Non-current |
||||||||||||||||
Embedded and other derivatives |
||||||||||||||||
Current |
||||||||||||||||
Foreign exchange contracts (principal amount – £ |
( |
) |
( |
) | ||||||||||||
Embedded and other derivatives |
( |
) |
( |
) | ||||||||||||
Derivatives classified as held for trading |
( |
) |
( |
) | ||||||||||||
Total derivative instruments |
( |
) |
( |
) |
252 |
GSK Annual Report 2022 |
2022 |
||||||||||||||||||||
Hedging instruments |
Average exchange rate |
Foreign currency |
Notional value £m |
Carrying value £m |
Periodic change in value for calculating hedge ineffectiveness £m |
|||||||||||||||
Cash flow hedges |
||||||||||||||||||||
Foreign exchange contracts |
||||||||||||||||||||
Buy foreign currency: |
||||||||||||||||||||
Less than 3 months |
||||||||||||||||||||
3 to 6 months |
||||||||||||||||||||
Over 6 months |
||||||||||||||||||||
Sell foreign currency |
||||||||||||||||||||
Less than 3 months |
( |
) |
– |
– |
||||||||||||||||
253 |
2022 | ||||||||||||||||||||
Hedging instruments |
Average exchange rate |
Foreign currency |
Notional value £m |
Carrying value £m |
Periodic change in value for calculating hedge ineffectiveness £m |
|||||||||||||||
Net investment hedges |
||||||||||||||||||||
Foreign exchange contracts |
||||||||||||||||||||
Sell foreign currency: |
||||||||||||||||||||
Less than 3 months |
( |
) | ( |
) | ||||||||||||||||
( |
) | ( |
) | |||||||||||||||||
Over 6 months |
||||||||||||||||||||
Borrowings |
||||||||||||||||||||
Less than 3 months |
( |
) | ( |
) | ||||||||||||||||
3 to 6 months |
( |
) | ( |
) | ||||||||||||||||
Over 6 months |
( |
) | ( |
) | ||||||||||||||||
( |
) | ( |
) |
2022 | ||||||||||||
Hedged items |
Periodic change in value for calculating hedge ineffectiveness £m |
Cumulative balance in cash flow hedge reserve/foreign currency translation reserve for continuing hedges £m |
Balance in cash flow hedge reserve arising from hedging relationships for which hedge accounting is no longer applied £m |
|||||||||
Cash flow hedges |
||||||||||||
Variability in cash flows from a highly probable forecast transaction |
( |
) | ||||||||||
Variability in cash flows from foreign exchange exposure arising on Euro denominated coupon payments relating to debt issued |
( |
) | ||||||||||
Net investment hedges |
||||||||||||
Net investment in foreign operations |
( |
) |
2021 | ||||||||||||||||||||
Hedging instruments |
Average exchange rate |
Foreign currency |
Notional value £m |
Carrying value £m |
Periodic change in value for calculating hedge ineffectiveness £m |
|||||||||||||||
Cash flow hedges |
||||||||||||||||||||
Foreign exchange contracts |
||||||||||||||||||||
Buy foreign currency: |
||||||||||||||||||||
Less than 3 months |
( |
) | – | |||||||||||||||||
3 to 6 months |
( |
) | ( |
) | ||||||||||||||||
Over 6 months |
– | – | ||||||||||||||||||
( |
) | ( |
) |
2021 | ||||||||||||||||||||
Hedging instruments |
Average exchange rate |
Foreign currency |
Notional value £m |
Carrying value £m |
Periodic change in value for calculating hedge ineffectiveness £m |
|||||||||||||||
Net investment hedges |
||||||||||||||||||||
Foreign exchange contracts |
||||||||||||||||||||
Sell foreign currency: |
||||||||||||||||||||
Less than 3 months |
||||||||||||||||||||
– | – | |||||||||||||||||||
– | ||||||||||||||||||||
Borrowings |
||||||||||||||||||||
Less than 3 months |
( |
) | ||||||||||||||||||
Over 6 months |
( |
) | ||||||||||||||||||
( |
) |
254 |
GSK Annual Report 2022 |
2021 | ||||||||
Hedged items |
Periodic change in value for calculating hedge ineffectiveness £m |
Cumulative balance in cash flow hedge reserve/foreign currency translation reserve for continuing hedges £m |
||||||
Cash flow hedges |
||||||||
Variability in cash flows from foreign exchange exposure arising on Euro denominated coupon payments relating to debt issued |
( |
) | ||||||
Net investment hedges |
||||||||
Net investment in foreign operations |
( |
) | ( |
) |
2022 | ||||||||||||||||||||||||
Amount reclassified to profit or loss |
Amount reclassified to balance sheet | |||||||||||||||||||||||
Hedging gains/(losses) recognised in reserves £m |
Amount of hedge ineffectiveness recognised in profit or loss £m |
Line item in profit or loss in which hedge ineffectiveness is included |
Hedged future cash flows no longer expected to occur £m |
Due to hedged item affecting profit or loss £m |
Line item in profit or loss in which reclassification adjustment is included |
Due to hedged item affecting balance sheet £m |
Line item in balance sheet in which reclassification adjustment is included | |||||||||||||||||
Cash flow hedges |
||||||||||||||||||||||||
Variability in cash flows from a highly probable forecast transaction | ( |
) | – | assets | ||||||||||||||||||||
Variability in cash flows from foreign exchange exposure arising on Euro denominated coupon payments relating to debt issued | ( |
) | Finance income or expense |
– | ||||||||||||||||||||
Net investment hedges |
||||||||||||||||||||||||
Net investment in foreign operations | ( |
) | operations (1) |
– |
2021 | ||||||||||||||||||||||||
Amount reclassified to profit or loss |
Amount reclassified to balance sheet | |||||||||||||||||||||||
Hedging gains/(losses) recognised in reserves £m |
Amount of hedge ineffectiveness recognised in profit or loss £m |
Line item in profit or loss in which hedge ineffectiveness is included |
Hedged future cash flows no longer expected to occur £m |
Due to hedged item affecting profit or loss £m |
Line item in profit or loss in which reclassification adjustment is included |
Due to hedged item affecting balance sheet £m |
Line item in balance sheet in which reclassification adjustment is included | |||||||||||||||||
Cash flow hedges |
||||||||||||||||||||||||
Variability in cash flows from a highly probable forecast transaction | operating income/ (expense) | ( |
) | – | ||||||||||||||||||||
Variability in cash flows from foreign exchange exposure arising on Euro denominated coupon payments relating to debt issued | ( |
) | – | |||||||||||||||||||||
Net investment hedges |
||||||||||||||||||||||||
Net investment in foreign operations | ( |
) | – |
(1) |
Reclassified to the Consolidated income statement on demerger of the Consumer Healthcare business |
255 |
2021 |
||||||||||||||||
Change in |
||||||||||||||||
fair value for |
||||||||||||||||
Average |
Notional |
recognising |
Fair value |
|||||||||||||
contracted |
principal |
hedge |
assets/ |
|||||||||||||
fixed rate |
value |
ineffectiveness |
(liabilities) |
|||||||||||||
Hedging instruments |
% |
£m |
£m |
£m |
||||||||||||
5-10 years |
||||||||||||||||
10-30 years |
||||||||||||||||
More than 30 years |
2021 |
||||||||
Balance in |
||||||||
Change in |
cash flow |
|||||||
value used for |
hedge reserve |
|||||||
calculating |
for continuing |
|||||||
hedge |
hedges |
|||||||
ineffectiveness |
after tax |
|||||||
Hedged items |
£m |
£m |
||||||
Pre-hedging of long-term interest rate |
( |
) |
( |
) |
256 |
GSK Annual Report 2022 |
2022 | ||||||||||||||||||||||||
Amount reclassified to profit or loss | ||||||||||||||||||||||||
Hedging gains/(losses) recognised in reserves £m |
Amount of hedge ineffectiveness recognised in profit or loss £m |
Line item in profit or loss in which hedge ineffectiveness is included |
Due to hedged future cash flows no longer expected to occur £m |
Due to hedged item affecting profit or loss £m |
Line item in profit or loss in which reclassification adjustment is included |
|||||||||||||||||||
Cash flow hedges |
||||||||||||||||||||||||
Pre-hedging of long-term interest rates: |
income or expense |
|
income or expense |
| ||||||||||||||||||||
Matured in the past |
( |
) | ||||||||||||||||||||||
2021 | ||||||||||||||||||||||||
Amount reclassified to profit or loss | ||||||||||||||||||||||||
Hedging gains/(losses) recognised in reserves £m |
Amount of hedge ineffectiveness recognised in profit or loss £m |
Line item in profit or loss in which hedge ineffectiveness is included |
Due to hedged future cash flows no longer expected to occur £m |
Due to hedged item affecting profit or loss £m |
Line item in profit or loss in which reclassification adjustment is included |
|||||||||||||||||||
Cash flow hedges |
||||||||||||||||||||||||
Variability in cash flows |
( |
) | ||||||||||||||||||||||
income or | income or | |||||||||||||||||||||||
expense | expense | |||||||||||||||||||||||
Pre-hedging of long-term interest rates: |
||||||||||||||||||||||||
Matured in the past |
income or expense |
|
income or expense |
| ||||||||||||||||||||
5-10 years |
||||||||||||||||||||||||
10-30 years |
|
| ||||||||||||||||||||||
>30 years |
||||||||||||||||||||||||
At 31 December 2022 |
Gross financial assets/ (liabilities) £m |
Gross financial (liabilities)/ assets set off £m |
Net financial assets/ (liabilities) per balance sheet £m |
Related amounts not set off in the balance sheet £m |
Net £m |
|||||||||||||||
Financial assets |
||||||||||||||||||||
Trade and other receivables |
||||||||||||||||||||
Derivative financial instruments |
( |
) | ||||||||||||||||||
Financial liabilities |
||||||||||||||||||||
Trade and other payables |
( |
) | ( |
) |
( |
) | ||||||||||||||
Derivative financial instruments |
( |
) | ( |
) |
( |
) |
257 |
At 31 December 2021 |
Gross financial assets/ (liabilities) £m |
Financial (liabilities)/ assets offset £m |
Net financial assets/ (liabilities) £m |
Related amounts not offset £m |
Net balance £m |
|||||||||||||||
Financial assets |
||||||||||||||||||||
Trade and other receivables |
( |
) | ( |
) | ||||||||||||||||
Derivative financial instruments |
( |
) | ||||||||||||||||||
Financial liabilities |
||||||||||||||||||||
Trade and other payables |
( |
) | ( |
) |
( |
) | ||||||||||||||
Derivative financial instruments |
( |
) | ( |
) |
( |
) |
2022 |
2021 | |||||||
Total debt £m |
Total £m |
|||||||
Floating and fixed rate debt less than one year |
( |
) |
( |
) | ||||
Between one and two years |
( |
) |
( |
) | ||||
Between two and three years |
( |
) |
( |
) | ||||
Between three and four years |
( |
) |
( |
) | ||||
Between four and five years |
( |
) |
( |
) | ||||
Between five and ten years |
( |
) |
( |
) | ||||
Greater than ten years |
( |
) |
( |
) | ||||
Total |
( |
) |
( |
) | ||||
Original issuance profile: |
||||||||
Fixed rate interest |
( |
) |
( |
) | ||||
Floating rate interest |
( |
) |
( |
) | ||||
( |
) |
( |
) |
258 |
GSK Annual Report 2022 |
2022 |
2021 | |||||||
Income statement impact of non-functional currency foreign exchange exposures |
Increase/(decrease) in income £m |
Increase/(decrease) in income £m |
||||||
10 cent appreciation of the US Dollar |
||||||||
15 cent appreciation of the US Dollar |
||||||||
10 cent appreciation of the Euro |
( |
) |
( |
) | ||||
15 cent appreciation of the Euro |
( |
) |
( |
) | ||||
10 yen appreciation of the Yen |
||||||||
15 yen appreciation of the Yen |
( |
) |
2022 |
2021 | |||||||
Income statement impact of non-functional currency foreign exchange exposures |
Increase/(decrease) in income £m |
Increase/(decrease) in income £m |
||||||
10 cent depreciation of the US Dollar |
( |
) |
( |
) | ||||
15 cent depreciation of the US Dollar |
( |
) |
( |
) | ||||
10 cent depreciation of the Euro |
||||||||
15 cent depreciation of the Euro |
||||||||
10 yen depreciation of the Yen |
||||||||
15 yen depreciation of the Yen |
2022 |
2021 | |||||||
Equity impact of non-functional currency foreign exchange exposures |
Increase/(decrease) in equity £m |
Increase/(decrease) in equity £m |
||||||
10 cent appreciation of the Euro |
( |
) |
( |
) | ||||
15 cent appreciation in Euro |
( |
) |
( |
) |
2022 |
2021 | |||||||
Equity impact of non-functional currency foreign exchange exposures |
Increase/(decrease) in equity £m |
Increase/(decrease) in equity £m |
||||||
10 cent depreciation of the Euro |
||||||||
15 cent depreciation of the Euro |
259 |
2022 |
2021 | |||||||
Impact of foreign exchange movements on net debt |
(Increase)/decrease in net debt £m |
(Increase)/decrease in net debt £m |
||||||
10 cent appreciation of the US Dollar |
( |
) |
( |
) | ||||
15 cent appreciation of the US Dollar |
( |
) |
( |
) | ||||
10 cent appreciation of the Euro |
||||||||
15 cent appreciation of the Euro |
||||||||
10 yen appreciation of the Yen |
||||||||
15 yen appreciation of the Yen |
2022 |
2021 | |||||||
Impact of foreign exchange movements on net debt |
(Increase)/decrease in net debt £m |
(Increase)/decrease in net debt £m |
||||||
10 cent depreciation of the US Dollar |
||||||||
15 cent depreciation of the US Dollar |
||||||||
10 cent depreciation of the Euro |
( |
) |
( |
) | ||||
15 cent depreciation of the Euro |
( |
) |
( |
) | ||||
10 yen depreciation of the Yen |
( |
) |
( |
) | ||||
15 yen depreciation of the Yen |
( |
) |
( |
) |
2022 |
2021 | |||||||
Income statement impact of interest rate movements |
Increase/(decrease) in income £m |
Increase/(decrease) in income £m |
||||||
1% (100 basis points) increase in Sterling interest rates |
( |
) | ||||||
1.5% (150 basis points) increase in Sterling interest rates |
( |
) | ||||||
1% (100 basis points) increase in US Dollar interest rates |
( |
) |
||||||
1.5% (150 basis points) increase in US Dollar interest rates |
( |
) |
||||||
1% (100 basis points) increase in Euro interest rates |
( |
) |
||||||
1.5% (150 basis points) increase in Euro interest rates |
( |
) |
260 |
GSK Annual Report 2022 |
At 31 December 2022 |
Debt £m |
Interest on debt £m |
Lease liabilities £m |
Finance charge on lease liabilities £m |
Trade payables and other liabilities not in net debt £m |
Total £m |
||||||||||||||||||
Due in less than one year |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Between one and two years |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Between two and three years |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Between three and four years |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Between four and five years |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Between five and ten years |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Greater than ten years |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Gross contractual cash flows |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 December 2021 |
Debt £m |
Interest on debt £m |
Lease liabilities £m |
Finance charge on lease liabilities £m |
Trade payables and other liabilities not in net debt £m |
Total £m |
||||||||||||||||||
Due in less than one year |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Between one and two years |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Between two and three years |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Between three and four years |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Between four and five years |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Between five and ten years |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Greater than ten years |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Gross contractual cash flows |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
2022 |
2021 | |||||||||||||||||||||||||
Gross cash inflows |
Gross cash outflows |
Gross cash inflows | Gross cash outflows | |||||||||||||||||||||||
Forward starting interest rate swaps £m |
Foreign exchange forward contracts and swaps £m |
Forward starting interest rate swaps £m |
Foreign exchange forward contracts and swaps £m |
Forward starting interest rate swaps £m |
Foreign exchange forward contracts and swaps £m |
Forward starting interest rate swaps £m |
Foreign exchange forward contracts and swaps £m | |||||||||||||||||||
Less than one year |
( |
( |
( | |||||||||||||||||||||||
Between one and two years |
( |
– | ||||||||||||||||||||||||
Between two and three years |
– | ( |
– | |||||||||||||||||||||||
Between three and four years |
– | ( |
– | |||||||||||||||||||||||
Between four and five years |
– | ( |
– | |||||||||||||||||||||||
Greater than five years |
– | ( |
– | |||||||||||||||||||||||
Gross contractual cash flows |
( |
( |
( |
261 |
(1) | The 2021 and 2020 comparatives have been restated to reflect on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business. See Note 41. |
Number of shares and ADS issuable |
Shares (1) Number (000) |
Weighted fair value |
ADS (1) Number (000) |
Weighted fair value |
||||||||||||
At 1 January 2020 |
||||||||||||||||
Awards granted |
£ |
$ |
||||||||||||||
Awards exercised |
( |
) | ( |
) | ||||||||||||
Awards cancelled |
( |
) | ( |
) | ||||||||||||
At 31 December 2020 |
||||||||||||||||
Awards granted |
£ |
$ |
||||||||||||||
Awards exercised |
( |
) | ( |
) | ||||||||||||
Awards cancelled |
( |
) | ( |
) | ||||||||||||
At 31 December 2021 |
||||||||||||||||
Awards granted |
£ |
$ |
||||||||||||||
Awards exercised |
( |
) | ( |
) | ||||||||||||
Awards cancelled |
( |
) | ( |
) | ||||||||||||
At 31 December 2022 |
(1) | The 2021 and 2020 comparatives have been restated to reflect the demerger of the Consumer Healthcare business and aid year on year volume comparability of awards granted to GSK employees. |
262 |
GSK Annual Report 2022 |
2022 Grant |
2021 Grant | 2020 Grant | ||||||||||||
Risk-free interest rate |
( |
|||||||||||||
Dividend yield |
||||||||||||||
Volatility |
||||||||||||||
Expected life |
|
|
||||||||||||
Savings-related options grant price (including |
£ |
£ |
£ |
Options outstanding for the Share Save Plan |
Savings-related share option schemes |
|||||||||||||
Number 000 |
Weighted exercise price |
|||||||||||||
At 31 December 2022 |
£ |
|||||||||||||
Range of exercise prices on options outstanding at year end |
£ |
– £ |
||||||||||||
Weighted average market price on exercise during year |
£ |
|||||||||||||
Weighted average remaining contractual life |
Shares held for share award schemes |
2022 |
2021 | ||||||
Number of shares (000) |
||||||||
£m |
£m | |||||||
Nominal value |
||||||||
Carrying value |
||||||||
Market value |
Shares held for share option schemes |
2022 |
2021 | ||||||
Number of shares (000) |
||||||||
£m |
£m | |||||||
Nominal value |
||||||||
Carrying value |
||||||||
Market value |
263 |
% | ||||
(a) |
||||
(a) |
||||
% | ||||
(c) |
||||
(c) |
||||
(d) |
||||
% | ||||
Europe |
% | |||
(b) |
||||
(b) |
||||
|
|
Others |
% | |||
(a) | Directly held wholly-owned subsidiary of GSK plc. |
(b) | Tax resident in UK. |
(c) | GSK GP 1 Limited is a subsidiary undertaking of GSK plc and Berkeley Square Pension Trustee Company Limited and is the general partner of GSK (No.1) Scottish Limited Partnership and GSK (No.2) Scottish Limited Partnership. GSK GP 1 Limited’s share capital is |
(d) | GSK GP 2 Limited is a subsidiary undertaking of GSK plc and is the general partner of GSK (No.3) Scottish Limited Partnership. GSK GP 2 Limited’s share capital is |
264 |
GSK Annual Report 2022 |
265 |
266 |
GSK Annual Report 2022 |
267 |
Notes |
2022 £m |
2022 £m |
2021 £m |
2021 £m |
||||||||||||||||
Fixed assets – investments |
E |
22,881 |
54,995 |
|||||||||||||||||
Current assets: |
||||||||||||||||||||
Trade and other receivables |
F |
17,748 |
2,720 |
|||||||||||||||||
Cash at bank |
20 |
17 |
||||||||||||||||||
Total current assets |
17,768 |
2,737 |
||||||||||||||||||
Trade and other payables |
G |
(545 |
) |
(598 |
) | |||||||||||||||
Total current liabilities |
(545 |
) |
(598 |
) | ||||||||||||||||
Net current assets |
17,223 |
2,139 |
||||||||||||||||||
Total assets less current liabilities |
40,104 |
57,134 |
||||||||||||||||||
Provisions for liabilities |
H |
(13 |
) |
(12 |
) | |||||||||||||||
Other non-current liabilities |
I |
(645 |
) |
(458 |
) | |||||||||||||||
Net assets |
39,446 |
56,664 |
||||||||||||||||||
Capital and reserves |
||||||||||||||||||||
Share capital |
J |
1,347 |
1,347 |
|||||||||||||||||
Share premium account |
J |
3,440 |
3,301 |
|||||||||||||||||
Other reserves |
K |
1,420 |
1,420 |
|||||||||||||||||
Retained earnings: |
||||||||||||||||||||
At 1 January |
50,596 |
49,653 |
||||||||||||||||||
Profit/(loss) for the year |
710 |
4,942 |
||||||||||||||||||
Treasury shares transferred to the ESOP Trust |
1,089 |
– |
||||||||||||||||||
Dividends in specie |
(15,689 |
) |
– |
|||||||||||||||||
Dividends paid to shareholders |
(3,467 |
) |
(3,999 |
) |
||||||||||||||||
K |
33,239 |
50,596 |
||||||||||||||||||
Equity shareholders’ funds |
39,446 |
56,664 |
Share capital £m |
Share premium account £m |
Other reserves £m |
Retained earnings £m |
Total equity £m |
||||||||||||||||
At 1 January 2021 |
1,346 |
3,281 |
1,420 |
49,653 |
55,700 |
|||||||||||||||
Profit and Total comprehensive income attributable to shareholders |
– |
– |
– |
4,942 |
4,942 |
|||||||||||||||
Dividends to shareholders |
– |
– |
– |
(3,999 |
) |
(3,999 |
) | |||||||||||||
Shares issued under employee share schemes |
1 |
20 |
– |
– |
21 |
|||||||||||||||
At 31 December 2021 |
1,347 |
3,301 |
1,420 |
50,596 |
56,664 |
|||||||||||||||
Profit and Total comprehensive income attributable to shareholders |
– |
– |
– |
710 |
710 |
|||||||||||||||
Treasury shares transferred to the ESOP Trust |
1,089 |
1,089 |
||||||||||||||||||
Dividends to shareholders (Note D) |
– |
– |
– |
(3,467 |
) |
(3,467 |
) | |||||||||||||
Dividends in specie (Note D) |
– |
– |
– |
(15,689 |
) |
(15,689 |
) | |||||||||||||
Shares issued under employee share schemes |
– |
139 |
– |
– |
139 |
|||||||||||||||
At 31 December 2022 |
1,347 |
3,440 |
1,420 |
33,239 |
39,446 |
268 |
GSK Annual Report 2022 |
– | Paragraphs 45(b) and 46 to 52 of IFRS 2, ‘Share-based payment’ |
– | IFRS 7, ‘Financial Instruments – Disclosures’ |
– | Paragraphs 91-99 of IFRS 13, ‘Fair value measurement’ |
– | Paragraph 38 of IAS 1, ‘Presentation of financial statements’ comparative information requirements in respect of paragraph 79(a) (iv) of IAS 1 |
– | Paragraphs 10(d), 10(f), 16, 38(A), 38 (B to D), 40 (A to D), 111 and 134 to 136 of IAS 1, ‘Presentation of financial statements’ |
– | IAS 7, ‘Statement of cash flows’ |
– | Paragraph 30 and 31 of IAS 8, ‘Accounting policies, changes in accounting estimates and errors’ |
– | Paragraph 17 of IAS 24, ‘Related party disclosures’ and the further requirement in IAS 24 to disclose related party transactions entered into between two or more members of a Group. |
269 |
£m | ||||
Dividend in specie of Haleon plc shares distributed to external shareholders |
15,526 | |||
Dividend in specie of Haleon plc shares distributed to the ESOP Trusts |
163 | |||
15,689 |
2022 £m |
2021 £m |
|||||||
Shares in GlaxoSmithKline Services Unlimited |
637 |
637 | ||||||
Shares in GlaxoSmithKline Holdings (One) Limited |
18 |
18 | ||||||
Shares in GlaxoSmithKline Holdings Limited |
17,888 |
17,888 | ||||||
Shares in GlaxoSmithKline Consumer Healthcare Holdings Limited |
– |
34,800 | ||||||
Shares in GlaxoSmithKline Mercury Limited |
33 |
33 | ||||||
Shares in GSK LP Limited |
2,493 |
– | ||||||
21,069 |
53,376 | |||||||
Capital contribution relating to share-based payments |
1,139 |
1,139 | ||||||
Contribution relating to contingent consideration |
673 |
480 | ||||||
22,881 |
54,995 |
2022 £m |
2021 £m |
|||||||
Amounts due within one year: |
||||||||
UK Corporation tax recoverable |
– |
9 | ||||||
Other debtors |
2 |
– | ||||||
Amounts owed by Group undertakings |
17,422 |
2,319 | ||||||
17,424 |
2,328 | |||||||
Amounts due after more than one year: |
||||||||
Amounts owed by Group undertakings |
324 |
392 | ||||||
17,748 |
2,720 |
270 |
GSK Annual Report 2022 Notes to the company balance sheet – UK GAAP (including FRS 101 ‘Reduced Disclosure Framework’) continued |
2022 £m |
2021 £m |
|||||||
Amounts due within one year: |
||||||||
Other creditors |
396 |
457 |
||||||
Contingent consideration payable |
28 |
22 |
||||||
Corporation tax |
18 |
– |
||||||
Amounts owed to Group undertakings |
103 |
119 |
||||||
545 |
598 |
2022 £m |
2021 £m |
|||||||
At 1 January |
12 |
7 |
||||||
Charge for the year |
43 |
24 |
||||||
Utilised |
(42 |
) |
(19 |
) | ||||
At 31 December |
13 |
12 |
2022 £m |
2021 £m |
|||||||
Contingent consideration payable |
645 |
458 |
Ordinary shares |
Share premium account |
|||||||||||
Number |
£m |
£m |
||||||||||
Share capital issued and fully paid |
||||||||||||
At 1 January 2021 |
5,385,189,617 |
1,346 |
3,281 |
|||||||||
Issued under employee share schemes |
1,825,442 |
1 |
20 |
|||||||||
At 31 December 2021 |
5,387,015,059 |
1,347 |
3,301 |
|||||||||
Impact of share consolidation |
(1,077,403,011 |
) |
– |
– |
||||||||
Issued under employee share schemes |
1,731,293 |
– |
25 |
|||||||||
Ordinary shares acquired by ESOP Trust |
– |
– |
114 |
|||||||||
At 31 December 2022 |
4,311,343,341 |
1,347 |
3,440 |
271 |
272 |
In this section |
||||
274 |
||||
276 |
||||
278 |
||||
282 |
||||
285 |
||||
296 |
||||
298 |
||||
299 |
||||
299 |
||||
299 |
||||
302 |
||||
304 |
||||
307 |
||||
315 |
Total |
US |
Europe |
International |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 |
Growth | 2022 |
Growth | 2022 |
Growth | 2022 |
Growth | |||||||||||||||||||||||||||||||||||||||||||||||||||||
£m |
£% | CER% | £m |
£% | CER% | £m |
£% | CER% | £m |
£% | CER% | |||||||||||||||||||||||||||||||||||||||||||||||||
HIV |
5,749 |
20 |
12 |
3,756 |
30 |
17 |
1,310 |
10 |
10 |
683 |
- |
(3 |
) | |||||||||||||||||||||||||||||||||||||||||||||||
Dolutegravir products |
5,191 | 14 | 6 | 3,311 | 19 | 8 | 1,239 | 8 | 8 | 641 | - | (3 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Tivicay |
1,381 | – | (7 | ) | 823 | 8 | (3 | ) | 273 | (5 | ) | (4 | ) | 285 | (14 | ) | (19 | ) | ||||||||||||||||||||||||||||||||||||||||||
Triumeq |
1,799 | (4 | ) | (11 | ) | 1,217 | 2 | (8 | ) | 361 | (20 | ) | (19 | ) | 221 | (8 | ) | (9 | ) | |||||||||||||||||||||||||||||||||||||||||
Juluca |
636 | 23 | 14 | 494 | 26 | 13 | 127 | 14 | 15 | 15 | 15 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||
Dovato |
1,375 | 75 | 65 | 777 | 82 | 64 | 478 | 58 | 59 | 120 | >100 | >100 | ||||||||||||||||||||||||||||||||||||||||||||||||
Rukobia |
82 | 82 | 64 | 79 | 84 | 65 | 3 | 50 | 50 | – | – | – | ||||||||||||||||||||||||||||||||||||||||||||||||
Cabenuva |
340 | >100 | >100 | 294 | >100 | >100 | 40 | >100 | >100 | 6 | >100 | >100 | ||||||||||||||||||||||||||||||||||||||||||||||||
Apretude |
41 | – | – | 41 | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||||||||||||||
Others |
95 | (25 | ) | (29 | ) | 31 | (37 | ) | (45 | ) | 28 | (22 | ) | (22 | ) | 36 | (14 | ) | (17 | ) | ||||||||||||||||||||||||||||||||||||||||
Oncology |
602 |
23 |
17 |
313 |
14 |
3 |
253 |
30 |
31 |
36 |
80 |
75 |
||||||||||||||||||||||||||||||||||||||||||||||||
Zejula |
463 | 17 | 12 | 235 | 11 | – | 194 | 19 | 20 | 34 | 70 | 75 | ||||||||||||||||||||||||||||||||||||||||||||||||
Blenrep |
118 | 33 | 25 | 66 | 8 | (3 | ) | 52 | 86 | 86 | – | – | – | |||||||||||||||||||||||||||||||||||||||||||||||
Jemperli |
21 | >100 | >100 | 13 | >100 | >100 | 8 | >100 | >100 | – | – | – | ||||||||||||||||||||||||||||||||||||||||||||||||
Other |
– | – | – | (1 | ) | – | – | (1 | ) | – | – | 2 | – | – | ||||||||||||||||||||||||||||||||||||||||||||||
Immuno-inflamm. respiratory and other |
2,609 |
29 |
20 |
1,830 |
29 |
16 |
366 |
13 |
13 |
413 |
45 |
47 |
||||||||||||||||||||||||||||||||||||||||||||||||
Benlysta |
1,146 | 31 | 20 | 949 | 31 | 18 | 83 | 22 | 22 | 114 | 44 | 43 | ||||||||||||||||||||||||||||||||||||||||||||||||
Nucala |
1,423 | 25 | 18 | 881 | 28 | 15 | 300 | 17 | 17 | 242 | 24 | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other |
40 | >100 | >100 | – | – | – | (17 | ) | – | – | 57 | >100 | >100 | |||||||||||||||||||||||||||||||||||||||||||||||
Specialty Medicines excl. pandemic |
8,960 |
23 |
15 |
5,899 |
29 |
16 |
1,929 |
13 |
13 |
1,132 |
14 |
13 |
||||||||||||||||||||||||||||||||||||||||||||||||
Pandemic |
2,309 |
>100 |
>100 |
828 |
38 |
24 |
456 |
>100 |
>100 |
1,025 |
>100 |
>100 |
||||||||||||||||||||||||||||||||||||||||||||||||
Xevudy |
2,309 | >100 | >100 | 828 | 38 | 24 | 456 | >100 | >100 | 1,025 | >100 | >100 | ||||||||||||||||||||||||||||||||||||||||||||||||
Specialty Medicines |
11,269 |
37 |
29 |
6,727 |
30 |
17 |
2,385 |
34 |
35 |
2,157 |
69 |
70 |
||||||||||||||||||||||||||||||||||||||||||||||||
Meningitis |
1,116 |
16 |
11 |
573 |
26 |
14 |
362 |
2 |
3 |
181 |
18 |
20 |
||||||||||||||||||||||||||||||||||||||||||||||||
Bexsero |
753 | 16 | 12 | 333 | 32 | 19 | 337 | 3 | 4 | 83 | 20 | 23 | ||||||||||||||||||||||||||||||||||||||||||||||||
Menveo |
345 | 27 | 18 | 240 | 20 | 8 | 20 | (5 | ) | (10 | ) | 85 | 67 | 71 | ||||||||||||||||||||||||||||||||||||||||||||||
Other |
18 | (54 | ) | (54 | ) | – | – | – | 5 | – | – | 13 | (62 | ) | (62 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Influenza |
714 |
5 |
(4 |
) |
549 |
20 |
9 |
57 |
(44 |
) |
(44 |
) |
108 |
(11 |
) |
(16 |
) | |||||||||||||||||||||||||||||||||||||||||||
Fluarix/Flulaval |
714 | 5 | (4 | ) | 549 | 20 | 9 | 57 | (44 | ) | (44 | ) | 108 | (11 | ) | (16 | ) | |||||||||||||||||||||||||||||||||||||||||||
Shingles |
2,958 |
72 |
60 |
1,964 |
46 |
32 |
688 |
>100 |
>100 |
306 |
>100 |
>100 |
||||||||||||||||||||||||||||||||||||||||||||||||
Shringrix |
2,958 | 72 | 60 | 1,964 | 46 | 32 | 688 | >100 | >100 | 306 | >100 | >100 | ||||||||||||||||||||||||||||||||||||||||||||||||
Established vaccines |
3,085 |
4 |
– |
1,157 |
18 |
7 |
720 |
3 |
4 |
1,208 |
(7 |
) |
8 |
|||||||||||||||||||||||||||||||||||||||||||||||
Infanrix, Pediarix |
594 | 9 | 3 | 327 | 8 | (3 | ) | 131 | 13 | 13 | 136 | 10 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||
Boostrix |
594 | 14 | 7 | 360 | 33 | 20 | 138 | (1 | ) | (1 | ) | 96 | (14 | ) | (15 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Hepatitis |
571 | 24 | 16 | 343 | 28 | 15 | 142 | 30 | 31 | 86 | 5 | (1 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Rotarix |
527 | (3 | ) | (3 | ) | 95 | (14 | ) | (23 | ) | 122 | 3 | 5 | 310 | (1 | ) | 1 | |||||||||||||||||||||||||||||||||||||||||||
Synflorix |
305 | (15 | ) | (15 | ) | – | – | – | 34 | (24 | ) | (22 | ) | 271 | (13 | ) | (14 | ) | ||||||||||||||||||||||||||||||||||||||||||
Priorix, Priorix Tetra, Varilrix |
188 | (28 | ) | (29 | ) | 10 | – | – | 97 | (22 | ) | (22 | ) | 81 | (40 | ) | (43 | ) | ||||||||||||||||||||||||||||||||||||||||||
Cervarix |
117 | (15 | ) | (20 | ) | – | – | – | 22 | (12 | ) | (8 | ) | 95 | (16 | ) | (22 | ) | ||||||||||||||||||||||||||||||||||||||||||
Others |
189 | 26 | 26 | 22 | (8 | ) | (17 | ) | 34 | 55 | 45 | 133 | 28 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||
Vaccines excluding pandemic |
7,873 |
24 |
17 |
4,243 |
31 |
18 |
1,827 |
27 |
28 |
1,803 |
8 |
6 |
||||||||||||||||||||||||||||||||||||||||||||||||
Pandemic vaccines |
64 | (86 | ) | (86 | ) | – | (100 | ) | (100 | ) | 57 | – | – | 7 | (97 | ) | (97 | ) | ||||||||||||||||||||||||||||||||||||||||||
Pandemic adjuvant |
64 | (86 | ) | (86 | ) | – | (100 | ) | (100 | ) | 57 | – | – | 7 | (97 | ) | (97 | ) | ||||||||||||||||||||||||||||||||||||||||||
Vaccines |
7,937 |
17 |
11 |
4,243 |
22 |
10 |
1,884 |
31 |
32 |
1,810 |
(3 |
) |
(5 |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Respiratory |
6,548 |
8 |
3 |
3,209 |
10 |
(1 |
) |
1,384 |
3 |
3 |
1,955 |
10 |
9 |
|||||||||||||||||||||||||||||||||||||||||||||||
Arnuity Ellipta |
56 | 19 | 9 | 48 | 20 | 10 | – | – | – | 8 | 14 | – | ||||||||||||||||||||||||||||||||||||||||||||||||
Anoro Ellipta |
483 | (4 | ) | (9 | ) | 233 | (16 | ) | (24 | ) | 165 | 11 | 11 | 85 | 10 | 10 | ||||||||||||||||||||||||||||||||||||||||||||
Avamys/Veramyst |
321 | 8 | 6 | – | – | – | 65 | – | 2 | 256 | 10 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||
Flixotide/Flovent |
545 | 23 | 15 | 353 | 28 | 16 | 74 | 7 | 7 | 118 | 18 | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||
Incruse Ellipta |
196 | (4 | ) | (10 | ) | 104 | (5 | ) | (14 | ) | 64 | (9 | ) | (7 | ) | 28 | 8 | – | ||||||||||||||||||||||||||||||||||||||||||
Relvar/Breo Ellipta |
1,145 | 2 | (2 | ) | 498 | 2 | (8 | ) | 347 | 4 | 4 | 300 | – | 2 | ||||||||||||||||||||||||||||||||||||||||||||||
Seretide/Advair |
1,159 | (15 | ) | (17 | ) | 308 | (37 | ) | (43 | ) | 287 | (11 | ) | (11 | ) | 564 | 3 | 1 | ||||||||||||||||||||||||||||||||||||||||||
Trelegy Ellipta |
1,729 | 42 | 32 | 1,253 | 47 | 32 | 236 | 18 | 19 | 240 | 47 | 48 | ||||||||||||||||||||||||||||||||||||||||||||||||
Ventolin |
771 | 7 | 2 | 411 | 5 | (5 | ) | 116 | 7 | 8 | 244 | 11 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||
Other Respiratory |
143 | 4 | 6 | 1 | – | – | 30 | 11 | 7 | 112 | 2 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other General Medicines |
3,570 |
(1 |
) |
(2 |
) |
363 |
10 |
(1 |
) |
695 |
(14 |
) |
(13 |
) |
2,512 |
1 |
2 |
|||||||||||||||||||||||||||||||||||||||||||
Dermatology |
376 | (6 | ) | (5 | ) | (1 | ) | – | – | 107 | (18 | ) | (18 | ) | 270 | – | 1 | |||||||||||||||||||||||||||||||||||||||||||
Augmentin |
576 | 35 | 38 | – | – | – | 151 | 22 | 23 | 425 | 41 | 44 | ||||||||||||||||||||||||||||||||||||||||||||||||
Avodart |
330 | (1 | ) | (3 | ) | – | – | – | 107 | (9 | ) | (8 | ) | 223 | 5 | – | ||||||||||||||||||||||||||||||||||||||||||||
Lamictal |
511 | 7 | 1 | 265 | 14 | 3 | 109 | (3 | ) | (3 | ) | 137 | 2 | – | ||||||||||||||||||||||||||||||||||||||||||||||
Other |
1,777 | (10 | ) | (10 | ) | 99 | – | (9 | ) | 221 | (31 | ) | (31 | ) | 1,457 | (7 | ) | (6 | ) | |||||||||||||||||||||||||||||||||||||||||
General Medicines |
10,118 |
5 |
1 |
3,572 |
10 |
(1 |
) |
2,079 |
(3 |
) |
(3 |
) |
4,467 |
5 |
5 |
|||||||||||||||||||||||||||||||||||||||||||||
Total Commercial Operations |
29,324 |
19 |
13 |
14,542 |
22 |
10 |
6,348 |
18 |
19 |
8,434 |
14 |
14 |
274 |
GSK Annual Report 2022 |
Total |
US |
Europe |
International |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 |
Growth | 2021 |
Growth | 2021 |
Growth | 2021 |
Growth | |||||||||||||||||||||||||||||||||||||||||||||||||||||
£m |
£% | CER% | £m |
£% | CER% | £m |
£% | CER% | £m |
£% | CER% | |||||||||||||||||||||||||||||||||||||||||||||||||
HIV |
4,777 |
(2 |
) |
3 |
2,898 |
(4 |
) |
3 |
1,194 |
(2 |
) |
1 |
685 |
4 |
11 |
|||||||||||||||||||||||||||||||||||||||||||||
Dolutegravir products |
4,567 | (3 | ) | 2 | 2,774 | (6 | ) | – | 1,151 | (1 | ) | 1 | 642 | 7 | 14 | |||||||||||||||||||||||||||||||||||||||||||||
Tivicay |
1,381 | (10 | ) | (4 | ) | 763 | (12 | ) | (7 | ) | 286 | (22 | ) | (20 | ) | 332 | 15 | 24 | ||||||||||||||||||||||||||||||||||||||||||
Triumeq |
1,882 | (18 | ) | (14 | ) | 1,190 | (18 | ) | (13 | ) | 452 | (20 | ) | (18 | ) | 240 | (15 | ) | (12 | ) | ||||||||||||||||||||||||||||||||||||||||
Juluca |
517 | 4 | 10 | 393 | 2 | 8 | 111 | 14 | 18 | 13 | 18 | 27 | ||||||||||||||||||||||||||||||||||||||||||||||||
Dovato |
787 | >100 | >100 | 428 | 87 | 99 | 302 | >100 | >100 | 57 | >100 | >100 | ||||||||||||||||||||||||||||||||||||||||||||||||
Rukobia |
45 | >100 | >100 | 43 | >100 | >100 | 2 | >100 | >100 | – | – | – | ||||||||||||||||||||||||||||||||||||||||||||||||
Cabenuva |
38 | >100 | >100 | 32 | – | – | 5 | – | – | 1 | >100 | >(100 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Apretude |
– | – | – | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||||||||||||||
Others |
127 | (22 | ) | (18 | ) | 49 | (8 | ) | (4 | ) | 36 | (28 | ) | (26 | ) | 42 | (30 | ) | (23 | ) | ||||||||||||||||||||||||||||||||||||||||
Oncology |
489 |
31 |
37 |
274 |
19 |
26 |
195 |
43 |
46 |
20 |
>100 |
>100 |
||||||||||||||||||||||||||||||||||||||||||||||||
Zejula |
395 | 17 | 22 | 212 | 3 | 10 | 163 | 27 | 30 | 20 | >100 | >100 | ||||||||||||||||||||||||||||||||||||||||||||||||
Blenrep |
89 | >100 | >100 | 61 | >100 | >100 | 28 | >100 | >100 | – | – | – | ||||||||||||||||||||||||||||||||||||||||||||||||
Jemperli |
5 | >100 | >100 | 2 | – | – | 3 | >100 | >100 | – | – | – | ||||||||||||||||||||||||||||||||||||||||||||||||
Other |
– | – | – | (1 | ) | (>100 | ) | (>100 | ) | 1 | >100 | (>100 | ) | – | – | – | ||||||||||||||||||||||||||||||||||||||||||||
Immuno-Inflamm. respiratory and other |
2,027 |
18 |
25 |
1,417 |
17 |
25 |
325 |
11 |
13 |
285 |
31 |
41 |
||||||||||||||||||||||||||||||||||||||||||||||||
Benlysta |
874 | 22 | 29 | 727 | 19 | 26 | 68 | 21 | 25 | 79 | 55 | 67 | ||||||||||||||||||||||||||||||||||||||||||||||||
Nucala |
1,142 | 15 | 22 | 690 | 15 | 23 | 257 | 8 | 11 | 195 | 23 | 34 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other |
11 | 38 | 38 | – | – | – | – | – | – | 11 | 38 | 38 | ||||||||||||||||||||||||||||||||||||||||||||||||
Specialty Medicines excl. pandemic |
7,293 |
5 |
10 |
4,589 |
3 |
10 |
1,714 |
4 |
7 |
990 |
12 |
20 |
||||||||||||||||||||||||||||||||||||||||||||||||
Pandemic |
958 |
– |
– |
602 |
– |
– |
69 |
– |
– |
287 |
– |
– |
||||||||||||||||||||||||||||||||||||||||||||||||
Xevudy |
958 | – | – | 602 | – | – | 69 | – | – | 287 | – | – | ||||||||||||||||||||||||||||||||||||||||||||||||
Specialty Medicines |
8,251 |
18 |
25 |
5,191 |
17 |
24 |
1,783 |
9 |
11 |
1,277 |
45 |
55 |
||||||||||||||||||||||||||||||||||||||||||||||||
Meningitis |
961 |
(7 |
) |
(2 |
) |
453 |
5 |
11 |
354 |
(1 |
) |
2 |
154 |
(36 |
) |
(30 |
) | |||||||||||||||||||||||||||||||||||||||||||
Bexsero |
650 | – | 5 | 253 | (3 | ) | 3 | 328 | 1 | 4 | 69 | 5 | 20 | |||||||||||||||||||||||||||||||||||||||||||||||
Menveo |
272 | 3 | 9 | 200 | 16 | 23 | 21 | (19 | ) | (15 | ) | 51 | (23 | ) | (18 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Other |
39 | (66 | ) | (65 | ) | – | – | – | 5 | (17 | ) | (17 | ) | 34 | (69 | ) | (68 | ) | ||||||||||||||||||||||||||||||||||||||||||
Influenza |
679 |
(7 |
) |
(2 |
) |
456 |
(15 |
) |
(9 |
) |
101 |
3 |
6 |
122 |
22 |
28 |
||||||||||||||||||||||||||||||||||||||||||||
Fluarix/Flulaval |
679 | (7 | ) | (2 | ) | 456 | (15 | ) | (9 | ) | 101 | 3 | 6 | 122 | 22 | 28 | ||||||||||||||||||||||||||||||||||||||||||||
Shingles |
1,721 |
(13 |
) |
(9 |
) |
1,344 |
(20 |
) |
(15 |
) |
281 |
51 |
54 |
96 |
(25 |
) |
(23 |
) | ||||||||||||||||||||||||||||||||||||||||||
Shringrix |
1,721 | (13 | ) | (9 | ) | 1,344 | (20 | ) | (15 | ) | 281 | 51 | 54 | 96 | (25 | ) | (23 | ) | ||||||||||||||||||||||||||||||||||||||||||
Established vaccines |
2,970 |
(8 |
) |
(4 |
) |
977 |
(7 |
) |
(1 |
) |
700 |
(13 |
) |
(10 |
) |
1,293 |
(6 |
) |
(3 |
) | ||||||||||||||||||||||||||||||||||||||||
Infanrix, Pediarix |
543 | (14 | ) | (9 | ) | 303 | (3 | ) | 4 | 116 | (33 | ) | (32 | ) | 124 | (14 | ) | (10 | ) | |||||||||||||||||||||||||||||||||||||||||
Boostrix |
521 | 9 | 14 | 270 | 5 | 12 | 140 | – | 2 | 111 | 41 | 44 | ||||||||||||||||||||||||||||||||||||||||||||||||
Hepatitis |
460 | (20 | ) | (16 | ) | 269 | (19 | ) | (14 | ) | 109 | (22 | ) | (21 | ) | 82 | (20 | ) | (17 | ) | ||||||||||||||||||||||||||||||||||||||||
Rotarix |
541 | (3 | ) | 1 | 111 | (10 | ) | (4 | ) | 118 | (1 | ) | 2 | 312 | (2 | ) | 3 | |||||||||||||||||||||||||||||||||||||||||||
Synflorix |
357 | (11 | ) | (8 | ) | – | – | – | 45 | (15 | ) | (13 | ) | 312 | (11 | ) | (7 | ) | ||||||||||||||||||||||||||||||||||||||||||
Priorix, Priorix Tetra, Varilrix |
260 | – | 4 | – | – | – | 125 | (1 | ) | 2 | 135 | – | 5 | |||||||||||||||||||||||||||||||||||||||||||||||
Cervarix |
138 | (1 | ) | – | – | – | – | 25 | (17 | ) | (17 | ) | 113 | 4 | 5 | |||||||||||||||||||||||||||||||||||||||||||||
Others |
150 | (21 | ) | (19 | ) | 24 | (20 | ) | (13 | ) | 22 | 16 | 26 | 104 | (26 | ) | (26 | ) | ||||||||||||||||||||||||||||||||||||||||||
Vaccines excluding pandemic |
6,331 |
(9 |
) |
(5 |
) |
3,230 |
(13 | ) | (7 | ) | 1,436 |
– |
2 |
1,665 |
(10 | ) | (6 | ) | ||||||||||||||||||||||||||||||||||||||||||
Pandemic vaccines |
447 |
– |
– |
242 |
– |
– |
– |
– |
– |
205 |
– |
– |
||||||||||||||||||||||||||||||||||||||||||||||||
Pandemic adjuvant |
444 | – | – | 242 | – | – | – | – | – | 202 | – | – | ||||||||||||||||||||||||||||||||||||||||||||||||
Others |
3 | – | – | – | – | – | – | – | – | 3 | – | – | ||||||||||||||||||||||||||||||||||||||||||||||||
Vaccines |
6,778 |
(3 |
) |
2 |
3,472 |
(6 |
) |
– |
1,436 |
– |
2 |
1,870 |
1 |
5 |
||||||||||||||||||||||||||||||||||||||||||||||
Respiratory |
6,048 |
1 |
6 |
2,920 |
14 |
21 |
1,344 |
(7 |
) |
(5 |
) |
1,784 |
(11 |
) |
(5 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Arnuity Ellipta |
47 | 4 | 11 | 40 | 8 | 16 | – | – | – | 7 | (12 | ) | (13 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Anoro Ellipta |
504 | (8 | ) | (3 | ) | 278 | (15 | ) | (9 | ) | 149 | 5 | 8 | 77 | (1 | ) | 3 | |||||||||||||||||||||||||||||||||||||||||||
Avamys/Veramyst |
298 | – | 7 | – | – | – | 65 | (2 | ) | 2 | 233 | 1 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||
Flixotide/Flovent |
444 | 6 | 12 | 275 | 50 | 60 | 69 | (14 | ) | (11 | ) | 100 | (36 | ) | (32 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Incruse Ellipta |
205 | (7 | ) | (3 | ) | 109 | (7 | ) | (2 | ) | 70 | (5 | ) | (3 | ) | 26 | (10 | ) | (7 | ) | ||||||||||||||||||||||||||||||||||||||||
Relvar/Breo Ellipta |
1,121 | – | 5 | 488 | 3 | 9 | 334 | 4 | 6 | 299 | (9 | ) | (2 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Seretide/Advair |
1,357 | (12 | ) | (7 | ) | 486 | 12 | 19 | 322 | (28 | ) | (27 | ) | 549 | (16 | ) | (11 | ) | ||||||||||||||||||||||||||||||||||||||||||
Trelegy Ellipta |
1,217 | 49 | 57 | 854 | 52 | 62 | 200 | 19 | 21 | 163 | 81 | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||
Ventolin |
718 | (9 | ) | (4 | ) | 390 | (9 | ) | (3 | ) | 108 | (7 | ) | (5 | ) | 220 | (8 | ) | (3 | ) | ||||||||||||||||||||||||||||||||||||||||
Other Respiratory |
137 | (36 | ) | (31 | ) | – | – | – | 27 | – | – | 110 | (41 | ) | (36 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Other General Medicines |
3,619 |
(15 |
) |
(15 |
) |
331 |
(25 |
) |
(20 |
) |
807 |
(21 |
) |
(19 |
) |
2,481 |
(12 |
) |
(13 |
) | ||||||||||||||||||||||||||||||||||||||||
Dermatology |
399 | (6 | ) | (1 | ) | (1 | ) | >(100 | ) | >(100 | ) | 131 | (6 | ) | (4 | ) | 269 | (5 | ) | 2 | ||||||||||||||||||||||||||||||||||||||||
Augmentin |
426 | (13 | ) | (7 | ) | – | – | – | 124 | (14 | ) | (12 | ) | 302 | (12 | ) | (4 | ) | ||||||||||||||||||||||||||||||||||||||||||
Avodart |
332 | (29 | ) | (25 | ) | 1 | (80 | ) | (80 | ) | 118 | (25 | ) | (23 | ) | 213 | (30 | ) | (25 | ) | ||||||||||||||||||||||||||||||||||||||||
Lamictal |
478 | (11 | ) | (6 | ) | 232 | (14 | ) | (9 | ) | 112 | (7 | ) | (5 | ) | 134 | (9 | ) | (3 | ) | ||||||||||||||||||||||||||||||||||||||||
Other |
1,984 | (16 | ) | (19 | ) | 99 | (40 | ) | (36 | ) | 322 | (29 | ) | (27 | ) | 1,563 | (10 | ) | (16 | ) | ||||||||||||||||||||||||||||||||||||||||
General Medicines |
9,667 |
(6 | ) | (3 | ) | 3,251 | 8 | 15 | 2,151 | (13 | ) | (11 | ) | 4,265 | (11 | ) | (10 | ) | ||||||||||||||||||||||||||||||||||||||||||
Total Commercial Operations |
24,696 |
1 | 6 | 11,914 | 7 | 14 | 5,370 | (3 | ) | (1 | ) | 7,412 | (3 | ) | – |
275 |
Group turnover by geographic region |
2022 £m |
2021 (revised) (1) £m |
2020 (revised) (1) £m |
|||||||||
US |
14,542 |
11,914 |
11,148 |
|||||||||
Europe |
6,348 |
5,370 |
5,545 |
|||||||||
International |
8,434 |
7,412 |
7,661 |
|||||||||
29,324 |
24,696 |
24,354 |
Group turnover by product group |
2022 £m |
2021 (revised) (1) £m |
2020 (revised) (1) £m |
|||||||||
Specialty Medicines |
11,269 |
8,251 |
6,969 |
|||||||||
Vaccines |
7,937 |
6,778 |
6,982 |
|||||||||
General Medicines |
10,118 |
9,667 |
10,281 |
|||||||||
Consumer Healthcare (2) |
– |
– |
122 |
|||||||||
29,324 |
24,696 |
24,354 |
Specialty Medicines turnover |
2022 £m |
2021 (revised) (1) £m |
2020 (revised) (1) £m |
|||||||||
HIV |
5,749 |
4,777 |
4,876 |
|||||||||
Oncology |
602 |
489 |
372 |
|||||||||
Immuno-inflammation and other |
2,609 |
2,027 |
1,721 |
|||||||||
Pandemic |
2,309 |
958 |
– |
|||||||||
11,269 |
8,251 |
6,969 |
Vaccines turnover |
2022 £m |
2021 £m |
2020 £m |
|||||||||
Meningitis |
1,116 |
961 |
1,029 |
|||||||||
Influenza |
714 |
679 |
733 |
|||||||||
Shingles |
2,958 |
1,721 |
1,989 |
|||||||||
Established Vaccines |
3,085 |
2,970 |
3,231 |
|||||||||
Pandemic Vaccines |
64 |
447 |
– |
|||||||||
7,937 |
6,778 |
6,982 |
General Medicines |
2022 £m |
2021 £m |
2020 £m |
|||||||||
Respiratory |
6,548 |
6,048 |
6,006 |
|||||||||
Other General Medicines |
3,570 |
3,619 |
4,275 |
|||||||||
10,118 |
9,667 |
10,281 |
Financial results – Total |
2022 £m |
2021 (1) £m |
2020 (1) £m |
|||||||||
Turnover |
29,324 |
24,696 |
24,354 |
|||||||||
Profit after taxation from continuing operations |
4,921 |
3,516 |
5,103 |
|||||||||
Profit after taxation from discontinued operations and other gains/(losses) from the demerger |
3,049 |
1,580 |
1,285 |
|||||||||
Remeasurement of discontinued operations distributed to shareholders on demerger |
7,651 |
– |
– |
|||||||||
Profit after taxation from discontinued operations |
10,700 |
1,580 |
1,285 |
|||||||||
Profit after taxation for the year |
15,621 |
5,096 |
6,388 |
pence |
pence (3) |
pence (3) |
||||||||||
Basic earnings per share from continuing operations |
110.8p |
82.9p |
122.4p |
|||||||||
Basic earnings per share from discontinued operations |
260.6p |
26.7p |
22.0p |
|||||||||
Total basic earnings per share |
371.4p |
109.6p |
144.4p |
|||||||||
Diluted earnings per share from continuing operations |
109.2p |
81.8p |
120.9p |
|||||||||
Diluted earnings per share from discontinued operations |
257.0p |
26.4p |
21.7p |
|||||||||
Total diluted earnings per share |
366.2p |
108,2p |
142.6p |
(1) | GSK has revised its operating segments during the year. See Note 6 to the consolidated financial statements for more details. |
(2) | On 1 April 2020, GSK completed its divestment of Horlicks and other Consumer Healthcare nutrition products in India and a number of other countries (excluding Bangladesh) to Unilever and the merger of GSK’s Indian listed Consumer Healthcare entity with Hindustan Unilever, an Indian listed public company, GSK completed the divestment of Bangladesh on 30 June 2020. |
(3) | The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to reflect the demerger of the Consumer Healthcare business (see Note 41) and the impact of Share Consolidation (see Note 37) of the consolidated financial statements. |
276 |
GSK Annual Report 2022 |
Financial results – Adjusted |
2022 £m |
2021 (1) £m |
2020 (1) £m |
|||||||||
Turnover |
29,324 |
24,696 |
24,354 |
|||||||||
Continuing operating profit |
8,151 |
6,493 |
6,656 |
|||||||||
Continuing profit before taxation |
7,358 |
5,774 |
5,851 |
|||||||||
Continuing profit after taxation |
6,220 |
4,856 |
5,035 |
2022 £m |
2021 (1) £m |
2020 (1) £m |
||||||||||
Total continuing operating profit |
6,433 |
4,357 |
5,979 |
|||||||||
Intangible asset amortisation |
739 |
761 |
724 |
|||||||||
Intangible asset impairment |
296 |
347 |
200 |
|||||||||
Major restructuring |
321 |
424 |
1,178 |
|||||||||
Transaction-related items |
1,750 |
1,143 |
1,237 |
|||||||||
Divestments, significant legal and other items |
(1,388 |
) |
(539 |
) |
(2,662 |
) | ||||||
Adjusted continuing operating profit |
8,151 |
6,493 |
6,656 |
pence |
pence (1) |
pence (1) |
||||||||||
Total continuing earnings per share |
110.8p |
82.9p |
122.4p |
|||||||||
Intangible asset amortisation |
14.6p |
15.2p |
14.6p |
|||||||||
Intangible asset impairment |
5.8p |
6.6p |
4.1p |
|||||||||
Major restructuring |
5.9p |
8.7p |
24.3p |
|||||||||
Transaction-related items |
34.1p |
18.1p |
19.0p |
|||||||||
Divestments, significant legal and other items |
(31.5)p |
(21.2)p |
(70.0)p |
|||||||||
Adjusted continuing earnings per share |
139.7p |
110.3p |
114.4p |
% |
% |
% |
||||||||||
Return on capital employed |
n/m |
25.8 |
35.6 |
Balance sheet |
2022 |
2021 |
2020 |
|||||||||
Non-current assets |
39,377 |
60,429 |
60,184 |
|||||||||
Current assets |
20,769 |
18,674 |
20,247 |
|||||||||
Total assets |
60,146 |
79,103 |
80,431 |
|||||||||
Current liabilities |
(22,810 |
) |
(23,670 |
) |
(22,148 |
) | ||||||
Non-current liabilities |
(27,240 |
) |
(34,091 |
) |
(37,475 |
) | ||||||
Total liabilities |
(50,050 |
) |
(57,761 |
) |
(59,623 |
) | ||||||
Net assets |
10,096 |
21,342 |
20,808 |
|||||||||
Shareholders’ equity |
10,598 |
15,055 |
14,587 |
|||||||||
Non-controlling interests |
(502 |
) |
6,287 |
6,221 |
||||||||
Total equity |
10,096 |
21,342 |
20,808 |
|||||||||
Number of employees |
2022 |
2021 (1) |
2020 (1) |
|||||||||
US |
11,946 |
14,289 |
15,706 |
|||||||||
Europe |
31,800 |
38,809 |
40,711 |
|||||||||
International |
25,654 |
36,998 |
37,649 |
|||||||||
69,400 |
90,096 |
94,066 |
||||||||||
Manufacturing |
23,292 |
32,141 |
33,848 |
|||||||||
Selling |
26,310 |
34,846 |
36,391 |
|||||||||
Administration |
7,605 |
11,014 |
11,730 |
|||||||||
Research and development |
12,193 |
12,095 |
12,097 |
|||||||||
69,400 |
90,096 |
94,066 |
(1) | The employee numbers have not been restated for the purposes of the Consumer Healthcare demerger. |
277 |
Key |
† ^ |
In-license or other alliance relationship with third partyViiV Healthcare, a global specialist HIV company with |
EUA Phase I |
Emergency Use Authorisation Evaluation of clinical pharmacology, usually conducted in volunteers | ||||
GSK, Pfizer, Inc. and Shionogi Limited as shareholders, | ||||||||
is responsible for developing and delivering HIV medicines | Phase II | Determination of dose and initial evaluation of efficacy, | ||||||
BLA | Biological Licence Application | conducted in a small number of patients | ||||||
MAA | Marketing Authorisation Application (Europe) | Phase III | Large comparative study (compound versus placebo | |||||
NDA | New Drug Application (US) | and/or established treatment) in patients to establish | ||||||
A | Approved | clinical benefit and safety | ||||||
S | Submitted | |||||||
Achieved regulatory review milestones | ||||||||||
Compound |
Mechanism of Action/Vaccine Type |
Indication |
Phase |
MAA |
NDA/BLA | |||||
Oncology |
||||||||||
momelotinib † |
JAK1, JAK2 and ACVR1 inhibitor | myelofibrosis | Registration | S:Nov22 | S:Jun22 | |||||
Jemperli |
Anti-Programmed Cell Death protein 1 receptor | 1L endometrial cancer | III | |||||||
(dostarlimab) † |
(PD-1) antibody |
1L endometrial cancer combination with Zejula |
III | |||||||
Non-small cell lung cancer1 |
II | |||||||||
Zejula (niraparib) † |
Poly (ADP-ribose) polymerase (PARP) 1/2 inhibitor |
1L maintenance ovarian cancer combination with Jemperli |
III | |||||||
1L maintenance non small cell lung cancer (NSCLC) combination with pembrolizumab | III | |||||||||
Pre-metastatic, select biomarker population Breast Cancer |
III | |||||||||
Blenrep ( |
ADC targeting B-cell maturation antigen |
2L+ multiple myeloma combination with Pomalyst and dexamethasone | III | |||||||
mafodotin) † |
2L+ multiple myeloma combination with Velcade and dexamethasone | III | ||||||||
Multiple myeloma in combination with | II | |||||||||
anti-cancer treatments (platform study) | ||||||||||
1L multiple myeloma combination with Velcade, Revlimid and dexamethasone | I | |||||||||
cobolimab † |
Anti-T-cell domain-3 (TIM-3) antibody |
Non-small cell lung cancer combination with Jemperli |
III | |||||||
4428859 (EOS884448) † |
anti-TIGIT | Non-small cell lung cancer combination with Jemperli |
II | |||||||
4074386 † |
Anti-lymphocyte activation gene-3 (LAG-3) antibody |
Cancer | I | |||||||
4381562 † |
anti-PVRIG | Cancer | I | |||||||
3745417 | STING cytosolic DNA pathway agonist | Advanced solid tumors | I | |||||||
Myeloid malignancies | I | |||||||||
6097608 † |
anti-CD96 | Cancer | I | |||||||
XMT-2056 2 (wholly owned by Mersana Therapeutics) |
STING agonist ADC | Cancer | I | |||||||
HIV^ |
||||||||||
Apretude |
HIV integrase strand transfer inhibitor (long-acting) | HIV pre-exposure prophylaxis |
Approved | S:Jun22 | A: Dec21 | |||||
(cabotegravir) | HIV infection (400 mg/ml formulation) | I | ||||||||
3640254 | HIV maturation inhibitor | HIV infection | II 3 |
|||||||
3810109 † |
HIV broadly neutralising antibody | HIV infection | II | |||||||
3739937 | HIV maturation inhibitor | HIV infection | I | |||||||
4004280 | HIV capsid protein inhibitor | HIV infection | I | |||||||
4011499 | HIV capsid protein inhibitor | HIV infection | I | |||||||
4524184 † |
HIV integrase inhibitor | HIV infection | I |
1 | non-registrational |
2 | GSK has an exclusive global license option to co-develop and commercialize the candidate |
3 | will not progress to Phase 3 |
278 |
GSK Annual Report 2022 |
Achieved regulatory review milestones | ||||||||||
Compound |
Mechanism of Action/Vaccine Type |
Indication |
Phase |
MAA |
NDA/BLA | |||||
Infectious Diseases |
||||||||||
Xevudy † |
Anti-spike protein antibody | COVID-19 |
Approved | A:Dec21 | EUA: | |||||
May21 4 | ||||||||||
Priorix |
Live attenuated | Measles, mumps, rubella prophylaxis (US) | Approved | A: Jun22 | ||||||
Menveo |
Conjugated-liquid formulation | Meningococcal A, C, W, Y disease prophylaxis in adolescents | Approved | A: Oct22 | ||||||
Rotarix |
Live attenuated, PCV (Porcine circovirus) free | Rotavirus prophylaxis (US) | Approved | A: Nov22 | ||||||
VidPrevtyn Beta |
Recombinant protein-adjuvanted vaccine | COVID-19 |
Approved | A: Nov22 | ||||||
COVID-19 vaccine |
||||||||||
(Sanofi) † 5 |
||||||||||
3844766 (RSV vaccine) † |
Recombinant protein – adjuvanted vaccine | Respiratory syncytial virus prophylaxis in older adult population 60 years of age and older Respiratory syncytial virus prophylaxis in older adult population 50-59 years of age |
Registration III |
S:Oct22 | S: Oct22 | |||||
SKYCovione (SK Bioscience) † 5 |
Recombinant protein nanoparticle-adjuvanted vaccine | COVID-19 |
Registration 6 |
S:Jul22 | ||||||
gepotidacin † |
Triazaacenaphthylene bacterial type II | Uncomplicated urinary tract infection (uUTI) | III | |||||||
topoisomerase inhibitor | Urogenital gonorrhea (GC) | III | ||||||||
bepirovirsen † |
HBV antisense | Hepatitis B | III | |||||||
Hepatitis B sequential therapy with Pegylated Interferon | II | |||||||||
Bexsero |
Recombinant protein vaccine | Meningococcal B disease prophylaxis 2 months of age and older (US) | III | |||||||
3536819 (Men ABCWY vaccine) |
Recombinant protein – conjugated vaccine | Meningococcal A, B, C, W, Y disease prophylaxis in adolescents | III | |||||||
tebipenem pivoxil † |
Antibacterial carbapenem | Complicated urinary tract infection (UTI) 7 |
III | |||||||
3036656 † |
Leucyl t-RNA synthetase inhibitor |
Tuberculosis | II | |||||||
BVL-GSK098 † |
Ethionamide booster | Tuberculosis | II | |||||||
VIR-2482 † 8 |
Neutralizing monoclonal antibody | Influenza | II | |||||||
3437949 † (Malaria fractional dose) |
Recombinant protein – adjuvanted vaccine | Malaria prophylaxis ( Plasmodium falciparum |
II | |||||||
3536852 † |
Generalized Modules for Membrane Antigens (GMMA) vaccine | Shigella diarrhea prophylaxis | II | |||||||
3528869 † (Therapeutic HBV) |
Prime-boost with viral vector co- or sequentially administrated with adjuvanted recombinant proteins |
Treatment of chronic Hepatitis B infections – aims at functional cure by controlling and resolving the clinical sequelae of the infection and reducing the need for further treatment | II | |||||||
4023393 (Men ABCWY, 2nd Gen) |
Recombinant protein – conjugated vaccine | Meningococcal A, B, C, W, Y disease prophylaxis in adolescents and children 6 weeks and older | II | |||||||
4178116 (Varicella new strain) |
Live attenuated vaccine | Active immunization for the prevention of varicella in individuals from 12 months of age and older | II | |||||||
sanfetrinem cilexetil † |
Serine beta lactamase inhibitor | Tuberculosis | II | |||||||
4106647 † |
Recombinant protein-adjuvanted vaccine | Active immunization of girls and women, boys and men (9-45 years), for the prevention of cancer, genital warts and precancerous or dysplastic lesions (girls, boys AIN only) caused by Human papillomavirus (HPV) |
II |
4 | As of Apr22, sotrovimab is no longer authorized to treat COVID-19 in U.S. due to increases in the proportion of COVID-19 cases caused by the Omicron BA.2 sub-variant |
5 | GSK is contributing pandemic adjuvant to COVID-19 vaccines collaborations |
6 | Approved in South Korea (Jun22) |
7 | Phase 2 or 3 study start expected in 2023 |
8 | GSK has exclusive option to co-develop post Phase 2 |
279 |
Achieved regulatory review milestones | ||||||||||
Compound |
Mechanism of Action/Vaccine Type |
Indication |
Phase |
MAA |
NDA/BLA | |||||
Infectious Diseases continued |
||||||||||
4388067 (CHBV ASO combo) † |
Targeted Immunotherapy (viral vector; adjuvanted recombinant proteins) & Direct Acting Antiviral (GSK’s bepirovirsen) | Treatment of chronic Hepatitis B virus infection in individuals >18 years without decompensated cirrhosis | II | |||||||
5101955 † |
Vaccine using Multiple Antigen Presenting System (MAPS) platform | Prevention of pneumonia and invasive pneumococcal disease caused by the Streptococcus pneumoniae 24 serotypes included in the vaccine in children aged 6 weeks – 17 years. | II | |||||||
5101956 † |
Vaccine using Multiple Antigen Presenting System (MAPS) platform | Prevention of pneumonia and invasive pneumococcal disease caused by the Streptococcus pneumoniae 24 serotypes included in the vaccine in adults aged 18 years and older | II | |||||||
4406371 (MMRV new strain) |
Live attenuated vaccine | Active immunization for the prevention of measles, mumps, rubella, and varicella in children 12 months through 12 years of age | II | |||||||
3882347 † |
FimH antagonist | Uncomplicated urinary tract infection (uUTI) | I | |||||||
3186899 † 9 |
CRK-12 inhibitor |
Visceral leishmaniasis | I | |||||||
3494245 † |
Proteasome inhibitor | Visceral leishmaniasis | I | |||||||
2556286 † |
Mtb cholesterol dependent inhibitor | Tuberculosis | I | |||||||
4182137 (VIR-7832) † |
Anti-spike protein antibody | COVID-19 |
I | |||||||
3923868 | PI4K beta inhibitor | Viral COPD exacerbations | I | |||||||
2904545 † |
Recombinant protein – adjuvanted vaccine | Active immunization for the prevention of the primary C. difficile |
I | |||||||
4429016 † |
Recombinant protein – bioconjugated – adjuvanted vaccine | Klebsiella pneumoniae |
I | |||||||
3993129 | Recombinant subunit – adjuvanted vaccine | Cytomegalovirus (CMV) infection prophylaxis in females 16-49 years of age |
I | |||||||
4382276 † |
mRNA vaccine | Active immunization for the prevention of disease caused by influenza viruses in adults 18 years and older | I | |||||||
4396687 † |
mRNA vaccine | Active immunization to prevent COVID-19 disease caused by SARS-CoV-2 |
I | |||||||
3943104 † (Therapeutic HSV) |
Recombinant protein-adjuvanted | Active immunization to suppress recurrence of Genital Herpes in adults aged 18 years and older. | I | |||||||
4077164 † |
Bivalent Generalized Modules for Membrane Antigens (GMMA) vaccine | Invasive non-typhoidal salmonella |
I | |||||||
4077164 † |
Bivalent Generalized Modules for Membrane Antigens (GMMA) vaccine and typhoid conjugate vaccine (TCV) | Invasive non-typhoidal salmonella and typhoid fever |
I | |||||||
3536867 † |
Bivalent Typhoid and Paratyphoid A conjugate | Salmonella typhoid and paratyphoid (A) enteric fever | I | |||||||
3965193 | PAPD5/PAPD7 inhibitor | Hepatitis B | I | |||||||
5251738 † |
TLR8 agonist | Hepatitis B | I | |||||||
3772701 † |
P falciparum |
Malaria | I | |||||||
4348413 | Generalized Modules for Membrane Antigens (GMMA) vaccine | Active immunization to prevent gonorrhea in individuals age 16 years and older, regardless of previous gonorrhea infection history | I |
9 | Transition activities underway to enable further progression by partner |
280 |
GSK Annual Report 2022 |
Achieved regulatory review milestones | ||||||||||
Compound |
Mechanism of Action/Vaccine Type |
Indication |
Phase |
MAA |
NDA/BLA | |||||
Immunology and Respiratory |
||||||||||
Nucala |
Anti-IL5 |
COPD | III | |||||||
depemokimab † |
Anti-IL5 (long-acting) |
Asthma | III | |||||||
Chronic rhinosinusitis with nasal polyps (CRSwNP) | III | |||||||||
Eosinophilic granulomatosis with polyangiitis (EGPA) | III | |||||||||
Hypereosinophilic syndrome (HES) | III | |||||||||
latozinemab † |
Anti-Sortilin monoclonal antibody | Frontotemporal Dementia (FTD) due to | III | |||||||
Heterozygous Mutations in the Progranulin Gene Amyotrophic Lateral Sclerosis (ALS) | II | |||||||||
Frontotemporal Dementia (FTD) due to Mutations in the C9orf72 Gene | II | |||||||||
Benlysta (belimumab) |
B lymphocyte stimulator monoclonal antibody | Systemic sclerosis associated interstitial lung disease 7 |
II | |||||||
3858279 † |
Anti-CCL17 | Osteoarthritis pain | I | |||||||
4527226 (AL101) † |
Anti-sortilin monoclonal antibody | Neurodegenerative disease | I | |||||||
1070806 | Anti-IL18 | Atopic dermatitis | I | |||||||
3888130 † |
Anti-IL7 |
Multiple sclerosis (MS) | I | |||||||
Opportunity Driven |
||||||||||
Jesduvroq (daprodustat) |
Prolyl hydroxylase inhibitor | Anaemia of chronic kidney disease | Approved | S:Feb22 | A:Feb23 | |||||
linerixibat | Ileal bile acid transporter (IBAT) inhibitor | Cholestatic pruritus in PBC (primary biliary cholangitis) | III | |||||||
4532990 † |
HSD17B13 silencer | Non-alcoholic steatohepatitis (NASH)7 |
II | |||||||
4172239 † |
DNMT1 inhibitor | Sickle cell disease 10 |
I |
7 | Phase 2 or 3 study start expected in 2023 |
10 | Imminent study start |
281 |
Major |
Patent expiry dates 1 | |||||||||
Products |
Compounds |
Indication(s) |
competitor brands |
US |
EU | |||||
Respiratory |
||||||||||
Anoro Ellipta |
umeclidinium bromide/ vilanterol trifenatate | COPD | Spiolto/Stiolto Respimat, Utibron/Ultibro Breezhaler, Duaklir Genuair Bevespi Aerosphere, Brimica Genuair |
2027 (NCE) 2027-2030 (device) |
2029 (NCE) 2022-2026 (device) | |||||
Avamys/Veramyst |
fluticasone furoate | Allergic rhinitis | Dymista, Xhance, Nasonex, Fluticasone Gx | expired | expired | |||||
Relvar/Breo Ellipta |
fluticasone furoate/vilanterol trifenatate | Asthma, COPD | Symbicort, Foster, Budesonide/Formoterol Gx Sirdupla, Dulera | 2025 (NCE) 2027-2030 (device) |
2027 (NCE) 2022-2026 (device) | |||||
Seretide/Advair |
salmeterol xinafoate/ fluticasone propionate | Asthma, COPD | Symbicort, Foster, Budesonide/ Formoterol Gx Sirdupla, Dulera |
expired ( Diskus 2023-2026 (HFA-device) |
expired ( Diskus expired (HFA-device) | |||||
Trelegy Ellipta |
fluticasone furoate/vilanterol trifenatate umeclidinium bromide | COPD, asthma | Trimbow pMDI/ NEXThaler, Breztri Aerosphere, Trixeo Aerosphere, Enerzair Breezhaler |
2027 (NCE) 2027-2030 (device) |
2029 (NCE) 2022-2026 (device) | |||||
Ventolin HFA |
Salbutamol sulphate | Asthma, COPD | generic companies | 2023-2026 (HFA-device) |
expired (HFA-device) | |||||
Xevudy |
sotrovimab | Early treatment of COVID-19 |
REGEN-COV, bamlanivimab/ etesevimab, Evusheld |
2041 (NBE) |
NA | |||||
Central nervous system |
||||||||||
Lamictal |
lamotrigine | Epilepsy, bipolar disorder | Vimpat, Trokendi XR, Inovelon, Keppra | expired | expired | |||||
Keppra |
levetiracetam | Epilepsy | Briviact, Vimpat, Lamictal, Depakene, Depacon |
NA | NA | |||||
Cardiovascular and urogenital |
||||||||||
Avodart & Duodart |
dutasteride dutasteride + tamsulosin | Benign prostatic hyperplasia (BPH) | Generic products, Finasteride, Alpha Blockers |
expired | expired | |||||
Anti-bacterials |
||||||||||
Augmentin |
Amoxicillin trihydrate/potassium clavulanate | Common bacterial infections | Generic products (Clavam, Moxikind-CV, Enhancin, Curam, Calamox) Oral Cephalosporins – Cefuroxime axetil, Cefixime, Cefpodoxime, Cefdinir, Cephalexin Oral Macrolides – Azithromycin, Clarithromycin |
NA | expired |
1 | Includes Supplementary Protection Certificates which were granted in multiple countries in EU (including the UK) and patent term extensions granted in the US. |
282 |
GSK Annual Report 2022 |
Major |
Patent expiry dates 1 | |||||||||
Products |
Compounds |
Indication(s) |
competitor brands |
US |
EU | |||||
Dermatology |
||||||||||
Dermovate, Betnovate, Cutivate, Eumovate |
Clobetasol propionate, Betamethasone valerate, Fluticasone propionate, Clobetasone butyrate | Inflammatory skin conditions | Generic products, Other topical corticosteroids like Mometasone furoate, Methylprednisolone aceponate and Hydrocortisone. |
Not marketed in US |
Expired | |||||
Oncology |
||||||||||
Zejula |
niraparib | ovarian cancer | Lynparza, Rubraca | 2031 (NCE) |
2028 (NCE) | |||||
Blenrep |
belantamab mafodotin | relapsed/refractory multiple myeloma |
Sarclisa, Xpovio | 2032 | 2032 | |||||
Jemperli |
dostarlimab | dMMR recurrent or advanced endometrial cancer, solid tumours | Keytruda | 2034 (NBE) |
2034 (NBE) | |||||
Immuno-inflammation |
||||||||||
Benlysta, Benlysta (SC and IV) |
belimumab | systemic lupus erythematosus, lupus nephritis | Lupkynis, Saphnelo | 2025 | 2026 | |||||
Jesduvroq, Duvroq |
Daprodustat | anaemia of chronic kidney disease | Evrenzo (roxadustat), vadadustat | 2027 (NCE) |
2027 (NCE) | |||||
HIV |
||||||||||
Apretude |
Cabotegravir | HIV prevention | Descovy, Truvada | 2026 (NCE) |
2026 (NCE) | |||||
Cabenuva/Vocabria + Rekambys |
Cabotegravir, rilpivirine | HIV/AIDS | Descovy, Genvoya, Odefsey, Biktarvy |
2026 (NCE) |
2026 (NCE) | |||||
Rukobia |
Fostemsavir | HIV/AIDS | Trogarzo | 2025 (NCE) |
2025 (NCE) | |||||
Dovato |
Dolutegravir, lamivudine | HIV/AIDS | Descovy, Genvoya, Odefsey, Biktarvy |
2027 (NCE) |
2029 (NCE) | |||||
Juluca |
Dolutegravir, rilpivirine | HIV/AIDS | Descovy, Genvoya, Odefsey, Biktarvy |
2027 (NCE) |
2029 (NCE) | |||||
Triumeq |
Dolutegravir, lamivudine and abacavir | HIV/AIDS | Descovy, Genvoya, Odefsey, Biktarvy |
2027 (NCE) |
2029 (NCE) | |||||
Tivicay |
Dolutegravir | HIV/AIDS | Isentress, Prezista Symtuza, Reyataz, Biktarvy |
2027 (NCE) |
2029 (NCE) |
1 | See Note 47 to the financial statements, ‘Legal proceedings’. |
2 | Includes Supplementary Protection Certificates which were granted in multiple countries in EU (including the UK), and patent term extensions granted in the US. |
a | Related compounds/indications are measles, mumps and rubella vaccine/prophylaxisb. |
b | Related compound is varicella vaccine. |
283 |
Major |
Patent expiry dates 2 | |||||||||
Products |
Compounds |
Indication(s) |
competitor brands |
US |
EU | |||||
Bexsero |
meningococcal group-B vaccine |
Meningitis group B prevention | Trumenba | 2027 | 2028 | |||||
Boostrix |
diphtheria, tetanus, acellular pertussis | diphtheria, tetanus, acellular Pertussis booster vaccination | Adacel | expired | expired | |||||
Infanrix Hexa/Pediarix |
diphtheria, tetanus, pertussis, polio, hepatitis B, Haemophilus influenzae type B (EU) | Prophylaxis against diphtheria, tetanus, pertussis, polio, hepatitis B, Haemophilus influenzae type B (EU) | Pentacel, Pediacel, Pentaxim, Pentavac, Hexaxim, Hexyon Vaxelis | expired | expired | |||||
Cervarix |
HPV 16 & 18 virus like particles (VLPs), AS04 adjuvant (MPL + aluminium hydroxide) | human papilloma virus type 16 and 18 | Gardasil (Silgard) | 2028 | expired | |||||
Fluarix Tetra |
split inactivated influenza antigens (2 virus subtypes A and 2 subtype B) | seasonal influenza prophylaxis | Intenza, Flumist QIV, Vaxigrip QIV, Fluzone QIV, Fluzone High Dose | expired | expired | |||||
FluLaval |
split inactivated influenza antigens (2 virus subtypes A and 2 subtype B) | seasonal influenza prophylaxis | Vaxigrip, Mutagrip, Fluzone, Influvac, Aggripal, Fluad, Intenza, Flumist | expired | expired | |||||
Menveo |
meningococcal group A, C, W- 135 and Y conjugate vaccine | Meningitis group A, C, W-135 and Y prophylaxis |
Nimenrix, Menactra | 2025 | 2025 | |||||
Priorix, Priorix Tetra a,b Varilrixb |
live attenuated measles, mumps, rubella and varicella vaccine | measles, mumps, rubella and chickenpox prophylaxis | MMR II (M-M-RVaxPro) |
expired | expired | |||||
Rotarix |
Human rotavirus RIX4414 strain | Rotavirus prophylaxis | Rotateq | 2022 | 2026 | |||||
Synflorix |
conjugated pneumococcal polysaccharide | Prophylaxis against invasive disease, pneumonia, acute otitis media | Prevenar (Prevnar) | NA | 2026 | |||||
Shingrix |
zoster vaccine recombinant, adjuvanted | herpes zoster (shingles) | Zostavax | 2029 | 2031 |
1 | See Note 47 to the financial statements, ‘Legal proceedings’. |
2 | Includes Supplementary Protection Certificates which were granted in multiple countries in EU (including the UK), and patent term extensions granted in the US. |
a | Related compounds/indications are measles, mumps and rubella vaccine/prophylaxisb. |
b | Related compound is varicella vaccine. |
284 |
GSK Annual Report 2022 |
285 |
286 |
GSK Annual Report 2022 |
287 |
288 |
GSK Annual Report 2022 |
289 |
290 |
GSK Annual Report 2022 |
291 |
– | operating and improving the centralised global privacy control framework |
– | continuously assessing and providing relevant and proportionate controls and aid to non-deployed markets |
– | monitoring new, or changing, laws and adapting the privacy framework accordingly |
– | deploying a comprehensive training programme to drive greater awareness and accountability for managing personal information across the entire organisation |
292 |
GSK Annual Report 2022 |
293 |
294 |
GSK Annual Report 2022 |
– | Product shortages and product recalls |
– | Regulatory intervention |
– | Reputational harm |
– | Lost sales revenue |
295 |
31 December 2022 | 3 March 2023 | |||||||||||
No. of voting rights |
Percentage of total voting rights (1) |
No. of voting rights |
Percentage of total voting rights (1) | |||||||||
BlackRock, Inc |
231,975,400 (2) |
5.69% | 231,975,400 (2) |
5.69% | ||||||||
Dodge & Cox |
253,464,108 (3) |
5.04% | 253,464,108 (3) |
5.04% |
(1) | Percentage of total voting rights at the date of notification to the company. |
(2) | Comprising an indirect interest in 229,134,683 Ordinary Shares and a holding of 2,840,717 Qualifying Financial Instruments (Contracts for Difference). |
(3) | Comprising an indirect interest in 99,377,874 Ordinary Shares and 154,086,234 ADS. |
296 |
GSK Annual Report 2022 |
Share price |
2022 £ |
2021 £ |
2020 £ |
|||||||||
At 1 January |
16.25 |
13.42 | 17.79 | |||||||||
At 31 December |
14.38 |
16.07 | 13.42 | |||||||||
Increase/(decrease) |
(12)% |
20% | (24.6)% | |||||||||
High during the year |
18.31 |
16.19 | 18.46 | |||||||||
Low during the year |
12.96 |
11.91 | 12.92 |
Ordinary Shares |
ADS |
|||||||||||||||
UK£ per share | US$ per share | |||||||||||||||
High | Low | High | Low | |||||||||||||
March 2023* |
14.42 | 14.22 | 34.66 | 34.26 | ||||||||||||
February 2023 |
15.03 | 14.20 | 36.43 | 34.27 | ||||||||||||
January 2023 |
14.51 | 13.87 | 35.61 | 34.48 | ||||||||||||
December 2022 |
14.92 | 13.88 | 37.92 | 34.78 | ||||||||||||
November 2022 |
14.48 | 13.24 | 34.59 | 31.58 | ||||||||||||
October 2022 |
14.29 | 13.19 | 33.29 | 30.01 | ||||||||||||
September 2022 |
13.78 | 12.96 | 32.47 | 28.67 | ||||||||||||
Quarter ended 31 December 2022 |
14.92 | 13.20 | 37.92 | 30.00 | ||||||||||||
Quarter ended 30 September 2022 |
18.23 | 12.96 | 44.53 | 28.67 | ||||||||||||
Quarter ended 30 June 2022 |
18.31 | 16.72 | 47.70 | 41.98 | ||||||||||||
Quarter ended 31 March 2022 |
17.27 | 15.01 | 47.66 | 40.17 | ||||||||||||
Quarter ended 31 December 2021 |
16.19 | 13.80 | 44.44 | 38.13 | ||||||||||||
Quarter ended 30 September 2021 |
15.26 | 13.83 | 42.33 | 38.05 | ||||||||||||
Quarter ended 30 June 2021 |
14.36 | 12.78 | 40.66 | 35.82 | ||||||||||||
Quarter ended 31 March 2021 |
14.14 | 11.91 | 39.24 | 33.61 | ||||||||||||
Year ended 31 December 2021 |
16.19 | 13.80 | 44.44 | 38.13 | ||||||||||||
Year ended 31 December 2020 |
14.68 | 12.92 | 39.17 | 33.42 | ||||||||||||
Year ended 31 December 2019 |
18.19 | 14.36 | 47.32 | 37.83 | ||||||||||||
Year ended 31 December 2018 |
16.22 | 12.43 | 41.94 | 35.49 |
297 |
Number of accounts |
% of total accounts |
% of total shares |
Number of shares |
|||||||||||||
Holding of shares |
||||||||||||||||
Up to 1,000 |
48,487 | 75.32 | 0.34 | 14,478,112 | ||||||||||||
1,001 to 5,000 |
11,929 | 18.53 | 0.58 | 25,184,737 | ||||||||||||
5,001 to 100,000 |
2,944 | 4.57 | 1.24 | 53,490,777 | ||||||||||||
100,001 to 1,000,000 |
682 | 1.06 | 5.52 | 237,893,148 | ||||||||||||
Over 1,000,000 |
333 | 0.52 | 92.32 | 3,980,296,567 | ||||||||||||
64,375 | 100.00 | 100.00 | 4,311,343,341 | |||||||||||||
Held by |
||||||||||||||||
Institutional and Corporate holders |
2,383 | 3.70 | 61.71 | 2,660,734,974 | ||||||||||||
Individuals and other corporate bodies |
61,990 | 96.30 | 13.46 | 580,447,710 | ||||||||||||
Guaranty Nominees Limited (ADR Programme) |
1 | 0.00 | 19.79 | 853,035,897 | ||||||||||||
Held as Treasury shares by GSK |
1 | 0.00 | 5.04 | 217,124,760 |
Year | pence | US$ (1) | ||||
2022 |
61.25 | (2) |
– (3) | |||
2021 |
80 | 2.16 | ||||
2020 |
80 | 2.12 | ||||
2019 |
80 | 2.01 | ||||
2018 |
80 | 2.08 |
(1) | An annual fee of $0.03 per ADS (or $0.0075 per ADS per quarter) will be charged by the Depository. The amounts shown are the dividends paid per ADS before the annual fee is charged. |
(2) | Adjusted for the Share Consolidation (2022 only; prior years have not been adjusted). Dividends declared and paid in respect of 2022 were 14p per share for Q1 2022, 16.25p per share for Q2 2022 and 13.75p per share for Q3 2022. A dividend of 13.75p per share has been declared for Q4 2022. |
(3) | The Q4 2022 ordinary dividend receivable by ADS holders will be calculated based on the exchange rate on 13 April 2023. The cumulative dividend receivable by ADS holders for Q1, Q2 and Q3 2022 was $1.05. |
Quarter |
Ex-dividend date |
Record date | Payment date | |||||||||
Q4 2022 |
23 February 2023 | 24 February 2023 | 13 April 2023 | |||||||||
Q1 2023 |
18 May 2023 | 19 May 2023 | 13 July 2023 | |||||||||
Q2 2023 |
17 August 2023 | 18 August 2023 | 12 October 2023 | |||||||||
Q3 2023 |
16 November 2023 | 17 November 2023 | 11 January 2024 | |||||||||
Q4 2023 |
22 February 2024 | 23 February 2024 | 11 April 2024 |
298 |
GSK Annual Report 2022 |
Event | Date | |||
Quarter 1 Results announcement |
26 April 2023 | |||
Annual General Meeting |
3 May 2023 | |||
Quarter 2 Results announcement |
26 July 2023 | |||
Quarter 3 Results announcement |
1 November 2023 | |||
Preliminary/Quarter 4 Results announcement |
31 January 2024 | |||
Annual Report publication |
February/March 2024 | |||
Annual Report distribution |
March 2024 |
299 |
1. | Must be issued by a US corporation, a corporation incorporated in a US possession, or a corporation that is eligible for the benefits of a comprehensive income tax treaty deemed satisfactory, as published by the IRS. |
300 |
GSK Annual Report 2022 |
2. | The dividends are not of a type listed by the IRS as dividends that do not qualify. |
3. | The required dividend holding period has been met. The shares must have been owned by you for more than 60 days of the ‘holding period’ – which is defined as the 121-day period that begins 60 days before the ex-dividend date, or the day in which the stock trades without the dividend priced in. For example, if a stock’s ex-dividend date is 1 October, the shares must be held for more than 60 days in the period between 2 August and 30 November of that year in order to count as a qualified dividend. |
1. | Capital gains distributions |
2. | Dividends on bank deposits |
3. | Dividends held by a corporation in an Employee Stock Ownership Plan (ESOP) |
4. | Dividends paid by tax-exempt corporations. |
301 |
Service | What it offers | How to participate | ||
Dividend Reinvestment Plan (DRIP) |
As an alternative to receiving cash dividends you may choose to reinvest your dividends to buy more GSK shares. | A DRIP election form, Terms and Conditions and information on fees can be downloaded from www.shareview.co.uk or requested by contacting Equiniti. | ||
Dividend payment direct to your bank account (Bank Mandate) |
All dividends are paid directly into your bank or building society account. To receive your cash dividends, you must provide Equiniti with your bank or building society account details. This is a quick and secure method of payment. | A dividend bank mandate form can be downloaded from www.shareview.co.uk or requested by contacting Equiniti. | ||
Dividend payment direct to bank account for overseas shareholders (Overseas Payment Service) |
Equiniti can convert your dividend into your local currency and send it direct to your local bank account. The Overseas Payment Service is available in approximately 100 countries worldwide. | More information on the Overseas Payment Service (including information on fees) can be found at www.shareview.co.uk or by contacting Equiniti. | ||
Electronic communications |
Shareholders may elect to receive electronic notifications of company communications including our Annual Report, dividend payments, dividend confirmations and the availability of online voting for all general meetings. Each time GSK publishes shareholder documents you will receive an email containing a link to the document or relevant website. | Please register at www.shareview.co.uk. | ||
Shareview portfolio service |
This enables you to create a free online portfolio to view your share balance and movements, update your address and dividend payment instructions and register your votes for our general meetings. | Please register at www.shareview.co.uk. | ||
Deduplication of publications or mailings |
If you receive duplicate copies of mailings, you may have more than one account. Please contact Equiniti and they will arrange for your accounts to be merged into one for your convenience and to avoid waste and unnecessary costs. | Please contact Equiniti. | ||
Share dealing service † |
Shareholders may trade shares, either held in certificated form or in our Corporate Sponsored Nominee, online, by telephone or via postal dealing service provided by Equiniti Financial Services Limited. | More information on the share dealing service (including information on fees) can be found at www.shareview.co.uk/dealing For online transactions, please log on to: www.shareview.co.uk/dealing. For telephone transactions, please call: 0345 603 7037 (in the UK) or +44 (0)345 603 7037 (outside the UK). Lines are open from 8.00am to 4.30pm UK time, Monday to Friday (excluding UK public holidays). For postal transactions, please call: 0371 384 2991* to request a dealing form. | ||
Corporate Sponsored Nominee Account |
This is a convenient way to manage your shares without requiring a share certificate. The service provides a facility for you to hold your shares in a nominee account sponsored by the company. You will continue to receive dividend payments and can attend and vote at the company’s general meetings. Shareholders’ names do not appear on the publicly available share register and the service is free to join. | An application form can be requested from www.shareview.co.uk or by contacting Equiniti. | ||
Individual Savings Accounts (ISAs) † |
Equiniti Financial Services Limited provide the EQi Flexible ISA to hold GSK shares. | Details (including information on fees) are available from www.eqi.co.uk or can be requested by calling the Equiniti Customer Experience Team on 0345 0700 720. Lines are open 8:00am to 5:30pm, UK time Monday to Friday (excluding UK public holidays). |
* | Lines are open from 8.30am to 5.30pm, UK time Monday to Friday (excluding public holidays in England and Wales). Please use the country code when dialling from outside the UK. |
† |
The provision of share dealing details 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. |
302 |
GSK Annual Report 2022 |
† |
The provision of share dealing details 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. |
* | Lines are open from 8.00am to 6.00pm, UK time, Monday to Friday, except UK public holidays, and 9.00am to 1.00pm on Saturdays. |
303 |
– | they have each reviewed the annual report on Form 20-F; |
– | based on their knowledge, the annual report on Form 20-F contains no material misstatements or omissions; |
– | based on their knowledge, the financial statements and other financial information fairly present, in all material respects, the financial condition, results of operations and cash flows as of the dates, and for the periods, presented in the annual report on Form 20-F; |
– | they are responsible for establishing and maintaining disclosure controls and procedures that ensure that material information is made known to them, and have evaluated the effectiveness of these controls and procedures as at the year end, the results of such evaluation being contained in the annual report on Form 20-F; |
– | they are responsible for establishing and maintaining internal control over financial reporting that provides reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; and |
– | they have disclosed in the annual report on Form 20-F any changes in internal controls over financial reporting during the period covered by the annual report on Form 20-F that have materially affected, or are reasonably likely to affect materially, the company’s internal control over financial reporting, and they have disclosed, based on their most recent evaluation of internal control over financial reporting, to the external auditor and the ARC, all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to affect adversely the company’s ability to record, process, summarise and report financial information, and any fraud (regardless of materiality) involving persons that have a significant role in the company’s internal control over financial reporting. |
304 |
GSK Annual Report 2022 |
– | management is responsible for establishing and maintaining adequate internal control over financial reporting for the Group. Internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS; |
– | management conducted an evaluation of the effectiveness of internal control over financial reporting based on the framework, Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organisations of the Treadway Commission (COSO); |
– | there have been no changes in the Group’s internal control over financial reporting during 2022 that have materially affected, or are reasonably likely to materially affect, the Group’s internal control over financial reporting; |
– | management has assessed the effectiveness of internal control over financial reporting as at 31 December 2022 and its conclusion will be filed as part of the Group’s Form 20-F; and |
– | Deloitte LLP, which has audited the consolidated financial statements of the Group for the year ended 31 December 2022, has also assessed the effectiveness of the Group’s internal control over financial reporting under Auditing Standard 2201 of the Public Company Accounting Oversight Board (United States). Their audit report will be filed with the Group’s Form 20-F. |
305 |
306 |
GSK Annual Report 2022 |
Name | Security | Registered address | ||||
Wholly owned subsidiaries |
||||||
1506369 Alberta ULC | Common | 3500 855-2nd Street SW, Calgary AB T2P 4J8, Canada | ||||
Action Potential Venture Capital Limited | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
Adechsa GmbH (ii) | Ordinary | c/o PRV Provides Treuhandgesellschaft AG, Dorfstrasse 38, 6341, Baar, Switzerland | ||||
Affinivax Securities Corporation | Common | c/o Affinivax, Inc., 301 Binney Street, Cambridge MA 02142, United States | ||||
Affinivax, Inc. | Common | Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808, United States | ||||
Allen & Hanburys Limited (ii) | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
Allen & Hanburys Pharmaceutical Nigeria Limited | Ordinary | 49, Town Planning Way, Ilupeju, Lagos, Nigeria | ||||
Allen Pharmazeutika Gesellschaft m.b.H. | Ordinary | Wienerbergstraße 7, Wien, 1100, Austria, Austria | ||||
BEECHAM GROUP p.l.c | 5p Ordinary B; 20p Ordinary A |
980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
Beecham Pharmaceuticals (Pte) Limited | Ordinary | 38 Quality Road, Jurong Industrial Estate, Jurong, 618809, Singapore | ||||
Beecham Portuguesa-Produtos Farmaceuticos e Quimicos, Lda, | Quota | Rua Dr Antonio Loureiro Borges No 3, Arquiparque, Miraflores, 1495-131, Alges, Portugal | ||||
Beecham S.A. | Ordinary | Avenue Fleming 20, 1300 Wavre, Belgium | ||||
Biovesta Ilaçlari Ltd. Sti. (ii) | Nominative | Büyükdere Caddesi No. 173, 1.Levent Plaza B Blok, 1.Levent, Istanbul, 34394, Turkey | ||||
Cascan GmbH & Co. KG | Partnership Capital | Prinzregentenplatz 9, 81675, Munich, Germany | ||||
Cellzome GmbH | Ordinary | Meyerhofstrasse 1, 69117, Heidelberg, Germany | ||||
Cellzome Limited (in liquidation) | Ordinary | c/o BDO LLP, 5 Temple Square, Temple Street, Liverpool, L2 5RH, United Kingdom | ||||
Charles Midgley Limited (in liquidation) | Ordinary | c/o BDO LLP, 5 Temple Square, Temple Street, Liverpool, L2 5RH, United Kingdom | ||||
Clarges Pharmaceuticals Limited (in liquidation) | Ordinary; Preference |
c/o BDO LLP, 5 Temple Square, Temple Street, Liverpool, L2 5RH, United Kingdom | ||||
Clarges Pharmaceutical Trustees Limited (ii) (iv) | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
Colleen Corporation | Common | Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808, United States | ||||
Corixa Corporation | Common | Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808, United States | ||||
Dealcyber Limited | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
Desarrollo Energia Solar Alternativa S.L. | Ordinary | Severo Ochoa, 2, Parque Tecnologico de Madrid, Tres Cantos, 28760, Madrid, Spain | ||||
Duncan Pharmaceuticals Philippines Inc. | Common | 23rd Floor, The Finance Centre, 26th Street Corner 9th Avenue, Bonifacio Global City, Taguig City, 1634, Philippines | ||||
Etex Farmaceutica Ltda | Social Capital | Av. Andrés Bello 2457, Costanera Center, Torre 2, Piso 20, Providencia, Santiago, 7510689, Chile | ||||
Genelabs Technologies, Inc. | Common | Corporation Service Company, 2710 Gateway Oaks Drive, Suite 150N, Sacramento CA 95833, United States | ||||
Glaxo Group Limited | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
Glaxo Kabushiki Kaisha (ii) | Ordinary | 1-8-1 Minato-ku, Tokyo, Japan | ||||
Glaxo Laboratories (Nigeria) Limited (ii) | Ordinary | 82 Marine Road, Apapa, Lagos, Nigeria | ||||
Glaxo Laboratories Limited (In Liquidation) | Ordinary | 55 Baker Street, London, W1U 7EU, United Kingdom | ||||
Glaxo New Zealand Pension Plan Trustee Limited | Ordinary | Level 2 E.2, Generator at GridAKL, 12 Madden Street, Wynyard Quarter, Auckland, 1010, New Zealand | ||||
Glaxo Operations UK Limited | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
Glaxo Properties BV | Ordinary | Van Asch van Wijckstraat 55h, 3811 LP, Amersfoort, Netherlands | ||||
Glaxo Trustees Limited (in liquidation) | Ordinary | 55 Baker Street, London, W1U 7EU, United Kingdom | ||||
Glaxo Verwaltungs GmbH | Ordinary | Prinzregentenplatz 9, 81675, Munich, Germany | ||||
Glaxo Wellcome Farmaceutica, Limitada | Ordinary Quota | Rua Dr Antonio Loureiro Borges No 3, Arquiparque, Miraflores, 1495-131, Alges, Portugal | ||||
Glaxo Wellcome Manufacturing Pte Ltd | Ordinary | 1 Pioneer Sector 1, Jurong Industrial Estate, Jurong, 628413, Singapore | ||||
Glaxo Wellcome Production | Ordinary | 23 rue François Jacob, 92500, Rueil-Malmaison, France | ||||
Glaxo Wellcome Vidhyasom Limited (ii) | Ordinary | 12th Floor Wave Place, 55 Wireless Road, Lumpini, Pathumwan, Bangkok, 10330, Thailand |
307 |
Name | Security | Registered address | ||||
Wholly owned subsidiaries continued |
||||||
Glaxo Wellcome, S.A. | Ordinary | |
Poligono Industrial Allendeduero, Avenida de Extremadura, 3, Aranda de Duero, 09400, Burgos, Spain | |||
Glaxo, S.A. | Ordinary | Severo Ochoa, 2, Parque Tecnologico de Madrid, Tres Cantos, 28760, Madrid, Spain | ||||
Glaxo-Allenburys (Nigeria) Limited (ii) | Ordinary | 41 Creek Road, Apapa, Lagos, PMB 1401, Nigeria | ||||
Glaxochem Pte Ltd (iii) | Ordinary | 23 Rochester Park, 139234, Singapore | ||||
GlaxoSmithKline - Produtos Farmaceuticos, Limitada | Ordinary Quota | Rua Dr Antonio Loureiro Borges No 3, Arquiparque, Miraflores, 1495-131, Alges, Portugal | ||||
GlaxoSmithKline (Cambodia) Co., Ltd. | Ordinary | 5th Floor DKSH Building, No.797 Preah Monivong Boulevard (Co, Sangkat Phsar Deum Thakov, Khan Chamkarmon, Phnom Penh, Cambodia | ||||
GlaxoSmithKline (China) Investment Co Ltd | Ordinary | Room 901, 902, 903, 905, 908, 909 and 910, Unit 901, Floor 9, No. 56 Mid 4th East Ring Road, Chaoyang District, Beijing, China | ||||
GlaxoSmithKline (China) R&D Company Limited | Equity | F1-3, No.18 Building, 999 Huanke Road, Pilot Free Trade Zone, Shanghai, 201210, China | ||||
GlaxoSmithKline (GSK) S.R.L. | Ordinary | 1-5 Costache Negri Street, Opera Center One, 5th and 6th floors, Zone 1, District 5, Bucharest, Romania | ||||
GlaxoSmithKline (Ireland) Limited | Ordinary | 12 Riverwalk, Citywest Business Campus, Dublin 24, Ireland | ||||
GlaxoSmithKline (Israel) Ltd | Ordinary | 25 Basel Street, PO Box 10283, Petach-Tikva, 49002, Israel | ||||
GlaxoSmithKline (Malta) Limited | Ordinary | 1, First Floor, De La Cruz Avenue, Qormi, QRM2458, Malta | ||||
GlaxoSmithKline (Private) Limited (ii) | Ordinary | Unit 3, 20 Anthony Road, Msasa, Harare, Zimbabwe | ||||
GlaxoSmithKline (Thailand) Limited | Ordinary | 12th Floor Wave Place, 55 Wireless Road, Lumpini, Pathumwan, Bangkok, 10330, Thailand | ||||
GlaxoSmithKline AB | Ordinary | Hemvarnsg. 9, 171 54, Solna, Sweden | ||||
GlaxoSmithKline AG | Ordinary | Talstrasse 3-5, 3053 Muenchenbuchsee, Switzerland | ||||
GlaxoSmithKline Angola Unipessoal Limitada | Quota | Luanda, Bairro Petrangol, Estrada de Cacuaco n ° 288, Angola | ||||
GlaxoSmithKline Argentina S.A. | Ordinary | Tucumán 1, piso 4, Buenos Aires, C1049AAA, Argentina | ||||
GlaxoSmithKline AS | Ordinary | Drammensveien 288, Oslo, NO-0283, Norway | ||||
GlaxoSmithKline Australia Pty Ltd | Ordinary | 1061 Mountain Highway, Boronia Victoria VIC 3155, Australia | ||||
GlaxoSmithKline B.V. | Ordinary | Van Asch van, Wijckstraat 55h, 3811 LP Amersfoort, The Netherlands, Netherlands | ||||
GlaxoSmithKline Beteiligungs GmbH | Ordinary | Prinzregentenplatz 9, 81675, Munchen, Germany | ||||
GlaxoSmithKline Biologicals Kft. | Ordinary | 2100 Gödöllõ, Homoki Nagy István utca 1, Hungary | ||||
GlaxoSmithKline Biologicals S.A.S. | Ordinary | 637 Rue des Aulnois, Saint-Amand Les Eaux, 59230, France | ||||
GlaxoSmithKline Biologicals SA | Ordinary; Preference | Rue de l’Institut 89 B-1330 Rixensart, Belgium | ||||
GlaxoSmithKline Brasil Limitada | Quotas | Estrada dos Banderiantes, 8464, Rio de Janeiro, 22783-110, Brazil | ||||
GlaxoSmithKline Capital Inc. | Common | Wilmington Trust SP Services, Inc., 1100 N. Market Street, 4th Floor, Wilmington DE 19890, United States | ||||
GlaxoSmithKline Capital plc | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
GlaxoSmithKline Caribbean Limited | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
GlaxoSmithKline Chile Farmaceutica Limitada | Social Capital | Av Andrés Bello 2457, Torre 2, piso 20, Providencia, Santiago, Región Metropolitana, Chile | ||||
GlaxoSmithKline Colombia S.A. | Ordinary | Avenida El Dorado, #69B-45/Piso 9, Bogota, Colombia | ||||
GlaxoSmithKline Consumer Holding B.V. (ii) | Ordinary | Van Asch van Wijckstraat 55h, 3811 LP, Amersfoort, Netherlands | ||||
GlaxoSmithKline d.o.o Sarajevo – u likvidaciji (In Liquidation) | Quotas | Zmja od Bosne broj 7-7a, Sarajevo, 71000, Bosnia and Herzegovina | ||||
GlaxoSmithKline d.o.o. | Equity Capital | Ulica Damira Tomljanovica Gavrana 15, Zagreb, Croatia | ||||
GlaxoSmithKline doo Beograd-Novi Beograd – U LIKVIDACIJI (In liquidation) | Ordinary | Milutin Milankovic, 1J, Novi Beograd, Belgrade, 11070, Serbia | ||||
GlaxoSmithKline Ecuador S.A. | Ordinary | Av 10 De Agosto N36-239, y Naciones Unidas, Edificio Electroectuatoriana, 2do piso, Quito, Ecuador | ||||
GlaxoSmithKline El Salvador S.A. de C.V. | Ordinary | Municipio de San Salvador, Departamento de San Salvador, El Salvador | ||||
GlaxoSmithKline EOOD | Ordinary | 16 Nedelcho Bonchev str., Sofia, 1592, Bulgaria | ||||
GlaxoSmithKline Export Limited | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
GlaxoSmithKline Export Panama S.A. | Ordinary | Panama City, Republic of Panama, Panama | ||||
GlaxoSmithKline Far East B.V. | Ordinary | Van Asch van Wijckstraat 55h, 3811 LP, Amersfoort, Netherlands | ||||
GlaxoSmithKline Finance plc | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
GlaxoSmithKline GmbH & Co. KG | Partnership Capital | Prinzregentenplatz 9, 81675, Munchen, Germany | ||||
GlaxoSmithKline Guatemala S.A. | Ordinary | 3ra. Av. 13-78 Zona 10, Torre Citibank, Nivel 8, Guatemala City, Guatemala | ||||
GlaxoSmithKline Holding AS | Ordinary | Drammensveien 288, Oslo, NO-0283, Norway | ||||
GlaxoSmithKline Holdings (Americas) Inc. | Common | Wilmington Trust SP Services Inc., 1100 North Market Street, 4th Floor, Wilmington, Delaware, 19890 | ||||
GlaxoSmithKline Holdings (One) Limited (i) | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
GlaxoSmithKline Holdings Limited (i) | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England |
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Name | Security | Registered address | ||||
Wholly owned subsidiaries continued |
||||||
GlaxoSmithKline Holdings Pty Ltd | Ordinary | 1061 Mountain Highway, Boronia Victoria VIC 3155, Australia | ||||
GlaxoSmithKline Honduras S.A. | Ordinary | Tegucigalpa, MDC, Honduras | ||||
GlaxoSmithKline IHC Limited | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
GlaxoSmithKline Ilaclari Sanayi ve Ticaret A.S. | Nominative | Büyükdere Caddesi No. 173, 1.Levent Plaza B Blok, 1.Levent, Istanbul, 34394, Turkey | ||||
GlaxoSmithKline Inc. | Class A Common; Class C Preference |
100 Milverton Drive, Suite 800 , Mississauga ON L5R 4H1, Canada | ||||
GlaxoSmithKline Insurance Ltd. | Ordinary | c/o Trinity Corporate Services Ltd., Trinity Hall, 43 Cedar Avenue, Hamilton, Hamilton, HM12, Bermuda | ||||
GlaxoSmithKline Intellectual Property (No.2) Limited | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
GlaxoSmithKline Intellectual Property Development Limited | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
GlaxoSmithKline Intellectual Property Holdings Limited | A Ordinary; B Ordinary |
980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
GlaxoSmithKline Intellectual Property Limited | Deferred; Ordinary |
980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
GlaxoSmithKline Intellectual Property Management Limited | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
GlaxoSmithKline Investigación y Desarrollo, S.L. | Ordinary | Severo Ochoa 2 Parque Tecnológico de Madrid, Tres Cantos, 28760, Madrid, Spain | ||||
GlaxoSmithKline Investments Pty Ltd | Ordinary | 1061 Mountain Highway, Boronia Victoria VIC 3155, Australia | ||||
GlaxoSmithKline K.K. | Ordinary | 1-8-1 Minato-ku, Tokyo, Japan | ||||
GlaxoSmithKline Korea Limited | Ordinary | 9F LS Yongsan Tower, 92 Hangang-daero, Yongsan-gu, Seoul, 04386, Korea, Republic of | ||||
GlaxoSmithKline Latin America, S.A. | Ordinary | Panama City, Republic of Panama, Panama | ||||
GlaxoSmithKline Lietuva UAB | Ordinary | Ukmerges st. 120, Vilnius, LT-08105, Lithuania | ||||
GlaxoSmithKline Limited | Ordinary | 23/F., Tower 6, The Gateway, 9 Canton Road, Tsimshatsui, Kowloon, Hong Kong | ||||
GlaxoSmithKline Limited (ii) | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
GlaxoSmithKline LLC | LLC Interests | Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808, United States | ||||
GlaxoSmithKline Manufacturing SpA | Ordinary | Viale dell’Agricoltura 7, 37135, Verona, Italy | ||||
GlaxoSmithKline Maroc S.A. | Ordinary | 42-44 Angle Bd, Rachidi et Abou Hamed El Glaza, Casablanca, Morocco | ||||
GlaxoSmithKline Medical and Healthcare Products Limited | Ordinary | H-1124, Csorsz utca 43, Budapest, Hungary | ||||
GlaxoSmithKline Mercury Limited (i) | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
GlaxoSmithKline Mexico S.A. de C.V. | Ordinary A; Ordinary B |
Av. Real Mayorazgo 130 Piso 20, Colonia Xoco, Alcaldia Benito Juárez, Ciudad de Mexico, 03330, Mexico | ||||
GlaxoSmithKline NZ Limited | Ordinary | Level 2 E.2, Generator @GridAKL, 12 Madden Street, Wynyard Quarter, Auckland, 1010, New Zealand | ||||
GlaxoSmithKline Oy | Ordinary | Piispansilta 9A, P.O. Box 24, Espoo, FIN-02230, Finland | ||||
GlaxoSmithKline Peru S.A. | Ordinary | Av. Víctor Andrés Belaúnde N°147, Vía Principal N°133, Piso 7, Distrito de San Isidro, Lima, Lima, Perú | ||||
GlaxoSmithKline Pharma A/S | Ordinary | Vallensbæk Company House III , Delta Park 37, DK-2665, Valle, Denmark | ||||
GlaxoSmithKline Pharma GmbH | Ordinary | Wienerbergstraße 7, Wien, 1100, Austria, Austria | ||||
GlaxoSmithKline Pharmaceutical Kenya Limited | Ordinary | Likoni Road, Nairobi, 78392 - 00507, Kenya | ||||
GlaxoSmithKline Pharmaceutical Nigeria Limited | Ordinary | 1 Industrial Avenue, Ilupeju, Ikeja, Lagos, PM B 21218, Nigeria | ||||
GlaxoSmithKline Pharmaceutical Sdn Bhd | Ordinary | HZ.01, Horizon Penthouse, 1 Powerhouse, 1, Persiaran Bandar Utama, Bandar Utama, 47800 Petaling Jaya, Selangor, Malaysia | ||||
GlaxoSmithKline Pharmaceuticals (Pvt) Ltd | Ordinary | 121 Galle Road, Kaldemulla, Moratuwa, Sri Lanka | ||||
GlaxoSmithKline Pharmaceuticals Costa Rica S.A | Ordinary | Autopista Florencia del Castillo, kilómetro siete, Oficentro TerraCampus, edificio uno, cuarto piso, San Diego, Cartago, 30302, Costa Rica | ||||
GlaxoSmithKline Pharmaceuticals SA | Ordinary | Site Apollo, Avenue Pascal 2-4-6, | ||||
GlaxoSmithKline Pharmaceuticals Ukraine LLC | Chartered Capital | Pavla Tychyny avenue, 1-V, Kiev, 02152, Ukraine | ||||
GlaxoSmithKline Philippines Inc | Ordinary | 23rd Floor, The Finance Centre, 26th Street Corner 9th Avenue, Bonifacio Global City, Taguig City, 1634, Philippines | ||||
GlaxoSmithKline Pte Ltd | Ordinary | 23 Rochester Park, 139234, Singapore | ||||
GlaxoSmithKline Puerto Rico, Inc. | Common | Corporation Service Company Puerto Rico Inc., c/o RVM Professional Services, LLC, A4 Reparto Mendoza, Humacao, 00791, Puerto Rico | ||||
GlaxoSmithKline Republica Dominicana S.A. | Ordinary | Blue Mall Tower, Floor 23 Ave., Winston Churchill 95, Santo Domingo, Dominican Republic | ||||
GlaxoSmithKline Research & Development Limited | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
GlaxoSmithKline S.A. | Ordinary | Severo Ochoa, 2, Parque Tecnologico de Madrid, Tres Cantos, 28760, Madrid, Spain | ||||
GlaxoSmithKline S.p.A. | Ordinary | Viale dell’Agricoltura 7, 37135, Verona, Italy | ||||
GlaxoSmithKline s.r.o. | Ordinary | Hvezdova 1734/2c, Prague, 4 140 00, Czech Republic | ||||
GlaxoSmithKline Services GmbH & Co. KG | Partnership Capital | Prinzregentenplatz 9, 81675, Munchen, Germany |
309 |
Name | Security | Registered address | ||||
Wholly owned subsidiaries continued |
||||||
GlaxoSmithKline Services Unlimited (i) | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
GlaxoSmithKline Single Member A.E.B.E. | Ordinary | 266 Kifissias Avenue, Halandri, Athens, 152 32, Greece | ||||
GlaxoSmithKline SL LLC | LLC Interests | Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808, United States | ||||
GlaxoSmithKline SL LP (ii) (viii) | Partnership | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
GlaxoSmithKline Slovakia s.r.o., v likvidácii (In Liquidation) | Ordinary | KPMG Slovensko Advisory k.s., Dvořákovo nábrežie 10, 811 02 Bratislava, Slovakia | ||||
GlaxoSmithKline South Africa (Pty) Limited | Ordinary | Flushing Meadows Building, The Campus, 57 Sloane Street, Bryanston 2021, South Africa | ||||
GlaxoSmithKline Trading Services Limited (iii) | Ordinary | 12 Riverwalk, Citywest Business Campus, Dublin 24, Ireland | ||||
GlaxoSmithKline Tunisia S.A.R.L. | Ordinary | Immeuble REGUS, Lot B17, Centre Urbain Nord, Tunis, Tunisia | ||||
GlaxoSmithKline UK Limited | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
GlaxoSmithKline Uruguay S.A. | Registered Provisory Stock | Salto 1105, CP 11.200 Montevideo, Uruguay | ||||
GlaxoSmithKline US Trading Limited | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
GlaxoSmithKline Venezuela C.A. | Ordinary | Calle Altagracia, edificio P&G, piso Mezzanina, torre Torre Sur, Urbanizacion Sorokaima, La Trinidad, Caracas, 1080, Venezuela, Bolivarian Republic of | ||||
GlaxoSmithKline Vietnam Limited Liability Company (ii) | Equity Capital | The Metropolitan, 235 Dong Khoi Street, District 1, 7th Floor Unit 701, Ho Chi Minh City, Vietnam | ||||
GlycoVaxyn AG | Common; Preferred A; Preferred B; Preferred C |
Grabenstrasse 3, 8952 Schlieren, Switzerland | ||||
Groupe GlaxoSmithKline | Ordinary | 23 rue François Jacob, 92500, Rueil-Malmaison, France | ||||
GSK (No.3) Scottish Limited Partnership (x) | Partnership | 50 Lothian Road, Festival Square, Edinburgh, Scotland, EH3 9WJ, United Kingdom | ||||
GSK Biopharma Argentina S.A. | Nominative Non Endorseable Ordinary | Tucumán 1, piso 4, Buenos Aires, C1049AAA, Argentina | ||||
GSK Business Service Centre Sdn Bhd | Ordinary | Level 6, Quill 9, 112 Jalan Prof. Khoo Kay Kim, Petaling Jaya,, 46300 Selangor, Malaysia | ||||
GSK Capital K.K. | Ordinary | 1-8-1 Minato-ku, Tokyo, Japan | ||||
GSK Commercial Sp. z o.o. | Ordinary | ul. Rzymowskiego 53, 02-697, Warsaw, Poland | ||||
GSK d.o.o., Ljubljana | Ordinary | Ameriška ulica 8,, Ljubljana, 1000, Slovenia | ||||
GSK Enterprise Management Co, Ltd | Ordinary | Floor 4, 18 Lane 999 Huanke Road, No. 1358 Zhongke Road, Shanghai, China | ||||
GSK Equity Investments, Limited | Units | Corporation Service Company, 2595 Interstate Drive, Suite 103, Harrisburg PA 17110, United States | ||||
GSK Finance (No 2) Limited | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
GSK Finance (No 3) plc | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
GSK India Global Services Private Limited | Equity | Level 1, 2 & 3 Luxor North Tower, Bagmane Capital Business Park Outer Ring Road, Bangalore, Karnataka, 560037, India | ||||
GSK International Holding and Finance BV | Ordinary | Van Asch van Wijckstraat 55h, 3811 LP, Amersfoort, Netherlands | ||||
GSK Kazakhstan LLP | Participation interest | 273, Furmanov Street, Almaty, Medeu District, 050059, Kazakhstan | ||||
GSK Pharma India Private Limited | Equity | 1, Battery House, Bhulabhai Desai Raod, Mumbai, Maharashtra, 400026, India | ||||
GSK Pharma Vietnam Company Limited | Chartered Capital | Unit 702/703 7th Floor, The Metropolitan Tower, 235 Dong Khoi Street, Ben Nghe Ward, District 1, Ho Chi Minh, Vietnam | ||||
GSK Pharmaceutical Trading S.A. (ii) | Ordinary | Bucharest, 1-5 Costache Negri Street, Opera Center One, 5th floor, discussions room 01, District 5, Romania | ||||
GSK PSC Poland sp. z o.o. | Equal and indivisible shares | ul. Grunwaldzka 189, Poznań, 60-322, Pol | ||||
GSK Services Sp z o.o. | Ordinary | Ul. Grunwaldzka 189, 60-322, Poznan, Poland | ||||
GSK Vaccines BV | Ordinary | Hullenbergweg 85, 1101 CL, Amsterdam, Netherlands | ||||
GSK Vaccines GmbH | Ordinary | Emil-von-Behring-Str.76, | ||||
GSK Vaccines Institute for Global Health S.r.l. | Quotas | Via Fiorentina 1, 53100, Siena, Italy | ||||
GSK Vaccines S.r.l. | Quotas | Via Fiorentina 1, 53100, Siena, Italy | ||||
GSK Vaccines Vertriebs GmbH | Ordinary | Rudolf-Diesel-Ring 27, 83607, Holzkirchen, Germany | ||||
Human Genome Sciences, Inc. | Common | Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808, United States | ||||
ID Biomedical Corporation of Quebec | Common | 2323, boul. Du Parc Technologique, Québec Québec G1P 4R8, Canada | ||||
Instituto Luso Farmaco, Limitada (ii) | Quotas | Rua Dr Antonio Loureiro Borges No 3, Arquiparque, Miraflores, 1495-131, Alges, Portugal | ||||
InterPharma Dienstleistungen GmbH (ii) | Quotas | Wienerbergstraße 7, Wien, 1100, Austria, Austria | ||||
J&J Technologies, LC (ii) | LLC Interests | Corporation Service Company, 100 Shockoe Slip, 2nd Floor, Richmond VA 23219, United States | ||||
JSC GlaxoSmithKline Trading | Ordinary | Leningradskiy Prospect 37A, Building 4, Floor 3, Premises XV, Room 1, 125167, Moscow, Russian Federation |
310 |
GSK Annual Report 2022 |
Name | Security | Registered address | ||||
Wholly owned subsidiaries continued |
||||||
Laboratoire GlaxoSmithKline | Ordinary | 23 rue François Jacob, 92500, Rueil-Malmaison, France | ||||
Laboratoire Pharmaceutique Algérien LPA Production SPA | Ordinary | Zone Industrielle Est, Boudouaou, Boumerdes, Algeria | ||||
Laboratoire Pharmaceutique Algérien SPA | Ordinary | Zone Industrielle Est, Boudouaou, Boumerdes, Algeria | ||||
Laboratoires Paucourt (ii) | Ordinary | 23 rue François Jacob, 92500, Rueil-Malmaison, France | ||||
Laboratoires Saint-Germain (ii) | Ordinary | 23 rue François Jacob, 92500, Rueil-Malmaison, France | ||||
Laboratorios Dermatologicos Darier, S.A de C.V. | Ordinary A; Ordinary B |
Av. Real Mayorazgo 130 Piso 20, Colonia Xoco, Alcaldia Benito Juárez, Ciudad de Mexico, 03330, Mexico | ||||
Laboratorios Farmaceuticos Stiefel (Portugal) LTDA (ii) | Ordinary | Rua Dr Antonio Loureiro Borges No 3, Arquiparque, Miraflores, 1495-131, Alges, Portugal | ||||
Laboratorios Stiefel de Venezuela SA | Ordinary | Calle Altagracia, Edificio P&G, Nivel Mezzanina, Piso Mezzanina, local Torre Sur, Urbanizacion Sorokaima, La Trinidad, Caracas, 1080, Venezuela, Bolivarian Republic of | ||||
Laboratorios Stiefel Ltda. | Ordinary | Rua Professor Joao Cavalheiro Salem, no.1077, Bairro de Bonsucesso, Municipality of Guarulhos, Sao Paulo, CEP 07243-580, Brazil | ||||
Laboratorios Wellcome De Portugal Limitada (ii) | Quotas | Rua Dr Antonio Loureiro Borges No 3, Arquiparque, Miraflores, 1495-131, Alges, Portugal | ||||
Montrose Pharma Company Limited (ii) | Ordinary Quota | H-1124, Csorsz utca 43, Budapest, Hungary | ||||
PT Glaxo Wellcome Indonesia | Class A; Class B |
JL. Pulobuaran Raya Kav.III/DD 2,3,4 KWS. Industri, Pulogadung, Jatinegara, Cakung, Jakarta Timur, Indonesia | ||||
Setfirst Limited | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
Sierra Oncology Australia Pty Ltd | Ordinary | c/o Maddocks Lawyers, Angel Place, Level 27, 123 Pitt Street Sydney 2000, Australia | ||||
Sierra Oncology Canada ULC | Common | 355 Burrard Street, Suite 1000, Vancouver, British Columbia V6C 2G8, Canada | ||||
Sierra Oncology Canada, LLC | LLC Interests | Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808, United States | ||||
Sierra Oncology, LLC | Common Stock | Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808, United States | ||||
Sitari Pharma, Inc. | Common Stock | Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808, United States | ||||
Smith Kline & French Portuguesa-Produtos Farmaceuticos, LDA (ii) | Ordinary | Rua Dr Antonio Loureiro Borges No 3, Arquiparque, Miraflores, 1495-131, Alges, Portugal | ||||
SmithKline Beecham (Bangladesh) Private Limited (ii) | Ordinary | House-2/A, Road-138,Gulshan-1, | ||||
SmithKline Beecham (Cork) Limited | Ordinary | 12 Riverwalk, Citywest Business Campus, Dublin 24, Ireland | ||||
SmithKline Beecham (Manufacturing) Limited (In Liquidation) | Ordinary | 12 Riverwalk, Citywest Business Campus, Dublin 24, Ireland | ||||
SmithKline Beecham Egypt L.L.C. | Quotas | Amoun Street, El Salam City, Cairo, Egypt | ||||
SmithKline Beecham Farma, S.A. | Ordinary | Severo Ochoa, 2, Parque Tecnologico de Madrid, Tres Cantos, 28760, Madrid, Spain | ||||
SmithKline Beecham Limited | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
SmithKline Beecham Legacy H Limited | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
SmithKline Beecham Pension Plan Trustee Limited (ii) | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
SmithKline Beecham Pension Trustees Limited (In Liquidation) | Ordinary | 55 Baker Street, London, W1U 7EU, United Kingdom | ||||
SmithKline Beecham Pharma GmbH & Co KG | Partnership Capital | Prinzregentenplatz 9, 81675, Munchen, Germany | ||||
SmithKline Beecham Pharma Verwaltungs GmbH | Ordinary | Prinzregentenplatz 9, 81675, Munchen, Germany | ||||
SmithKline Beecham Pharmaceuticals (Pty) Limited (ii) | Ordinary | Flushing Meadows Building, The Campus, 57 Sloane Street, Bryanston 2021, South Africa | ||||
SmithKline Beecham Pharmaceuticals Co. | Common | Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808, United States | ||||
SmithKline Beecham Senior Executive Pension Plan Trustee Limited (ii) | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
Stiefel GmbH & Co. KG | Partnership Capital | Prinzregentenplatz 9, 81675, Munchen, Germany | ||||
Stiefel Laboratories Legacy (Ireland) Limited | Ordinary | Unit 2 Building 2500, Avenue 2000 Cork Airport Business Park, Cork, Ireland | ||||
Stiefel Laboratories Limited (In liquidation) | Ordinary | c/o BDO LLP, 5 Temple Square, Temple Street, Liverpool, L2 5RH, United Kingdom | ||||
Stiefel Laboratories Pte Limited | Ordinary | 1 Pioneer Sector, 628413, Singapore | ||||
Stiefel Laboratories, Inc. | Common | Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808, United States | ||||
Stiefel Maroc SARL | Ordinary | 275 Boulevard Zerktouni, Casablanca, Morocco | ||||
Stiefel Research (Australia) Holdings Pty Ltd | Ordinary | 1061 Mountain Highway, Boronia Victoria VIC 3155, Australia | ||||
Stiefel Research Australia Pty Ltd | Ordinary | 1061 Mountain Highway, Boronia Victoria VIC 3155, Australia | ||||
Stiefel West Coast LLC | LLC Interests | Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808, United States | ||||
Strebor Inc. | Common | Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808, United States |
311 |
Name | Security | Registered address | ||||
Wholly owned subsidiaries continued |
||||||
Tesaro Bio GmbH (In Liquidation) | Ordinary | Poststrasse 6, 6300 Zug, Switzerland | ||||
Tesaro Bio Netherlands B.V | Ordinary | Joop Geesinkweg 901, 1114 AB, Amsterdam-Duivendrecht, Netherlands | ||||
Tesaro Development, Ltd. | Ordinary | Clarendon House, 2 Church Street, Hamilton HM11, Bermuda | ||||
Tesaro, Inc. | Common | Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808, United States | ||||
The Sydney Ross Co. (ii) | Ordinary | Corporation Service Company, Princeton South Corporate Center, Suite 160, 100 Charles Ewing Blvd, Ewing NJ 08628, United States | ||||
UCB Pharma Asia Pacific Sdn Bhd (ii) | Ordinary | 12th Floor, Menara Symphony, No. 5, Jalan Prof. Khoo Kay Kim,, Seksyen 13, 46200 Petaling Jaya, Malaysia | ||||
Wellcome Consumer Healthcare Limited (ii) | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
Wellcome Consumer Products Limited (In Liquidation) | Ordinary | c/o BDO LLP, 5 Temple Square, Temple Street, Liverpool, L2 5RH, United Kingdom | ||||
Wellcome Limited | Ordinary | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | ||||
Name | Security | Effective % Ownership |
Registered address | |||
Subsidiaries where the effective interest is less than 100% |
||||||
Amoun Pharmaceutical Industries Co. S.A.E. | New Monetary Shares (99.5%) | 90.71% | El Salam City 11491, PO Box 3001, Cairo, Egypt | |||
Biddle Sawyer Limited | Equity | 75.00% | 252 Dr Annie Besant Road, Mumbai, 400030, India | |||
British Pharma Group Limited | Capital (50%) | 50.00% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | |||
Galvani Bioelectronics Inc. | Common | 55.00% | Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808, United States | |||
Galvani Bioelectronics Limited | A Ordinary; B Ordinary (0%) |
55.00% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | |||
Glaxo Saudi Arabia Limited | Ordinary | 75.00% | PO Box 22617, Area No 56 to 73, Warehouse City, First Stage Al Khomrah, Jeddah 21416, Saudi Arabia | |||
GlaxoSmithKline (Tianjin) Co. Ltd | Ordinary | 90.00% | No. 65, the Fifth Avenue, Tai Feng Industrial Park, Tianjin Economic and Technolog, Tianjin, 300457, China | |||
GlaxoSmithKline Algérie S.P.A. | Ordinary | 99.99% | Zone Industrielle Est, Boudouaou, Wilaya de Boumerdes, Algeria | |||
GlaxoSmithKline Consumer Nigeria plc | Ordinary | 46.42% | 1 Industrial Avenue, Ilupeju, Ikeja, Lagos, PM B 21218, Nigeria | |||
GlaxoSmithKline Pakistan Limited | Ordinary | 82.59% | The Sykes Building, 35 Dockyard Road, West Wharf, Karachi, 74000, Pakistan | |||
GlaxoSmithKline Pharmaceuticals Limited | Equity | 75.00% | 252 Dr Annie Besant Road, Mumbai,, 400030, India | |||
GlaxoSmithKline S.A.E. | Ordinary | 91.20% | Boomerang Office Building - Land No. 46, Zone (J) - 1st District, Town Center - 5th Tagammoe, New Cairo City, Egypt | |||
GSK (No.1) Scottish Limited Partnership (ix) | Partnership | – | 50 Lothian Road, Festival Square, Edinburgh, Scotland, EH3 9WJ, United Kingdom | |||
GSK (No. 2) Scottish Limited Partnership (ix) | Partnership | – | 50 Lothian Road, Festival Square, Edinburgh, Scotland, EH3 9WJ, United Kingdom | |||
Laboratorios ViiV Healthcare, S.L. | Ordinary | 78.30% | Severo Ochoa, 2, Parque Tecnologico de Madrid, Tres Cantos, 28760, Madrid, Spain | |||
Modern Pharma Trading Company L.L.C. | Quotas | 91.20% | Amoun Street, PO Box 3001, El Salam City, Cairo, 11491, Egypt | |||
PHIVCO-1 LLC |
LLC Interests | 78.30% | Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808, United States | |||
PHIVCO-2 LLC |
LLC Interests | 78.30% | Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808, United States | |||
Shionogi-ViiV Healthcare LLC (ii) | Common Interests | 78.30% | Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808, United States | |||
SmithKline Beecham-Biomed O.O.O. | Participation Interest | 97.00% | Leningradskiy Prospect 37A, Building 4, Floor 2, Premises XIV, Room 42, 125167, Moscow, Russian Federation | |||
Stiefel Egypt LLC (ii) | Quotas | 99.00% | Amoun Street, PO Box 3001, El Salam City, Cairo, 11491, Egypt | |||
ViiV Healthcare (South Africa) (Proprietary) Limited | Ordinary | 78.30% | Flushing Meadows Building, The Campus, 57 Sloane Street, Bryanston 2021, South Africa | |||
ViiV HealthCare BV | Ordinary | 78.30% | Van Asch van, Wijckstraat 55h, 3811 LP Amersfoort, The Netherlands, Netherlands | |||
ViiV Healthcare Company | Common | 78.30% | Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808, United States | |||
ViiV Healthcare Finance 1 Limited (In liquidation) | Ordinary | 78.30% | c/o BDO LLP, 5 Temple Square, Temple Street, Liverpool, L2 5RH, United Kingdom | |||
ViiV Healthcare Finance 2 Limited | Ordinary | 78.30% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | |||
ViiV Healthcare Finance Limited | Ordinary; Redeemable Preference |
78.30% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | |||
ViiV Healthcare GmbH | Ordinary | 78.30% | Prinzregentenplatz 9, 81675, Munchen, Germany | |||
ViiV Healthcare GmbH | Ordinary | 78.30% | Talstrasse 3-5, 3053 Muenchenbuchsee, Switzerland |
312 |
GSK Annual Report 2022 |
Name | Security | Effective % Ownership |
Registered address | |||
Subsidiaries where the effective interest is less than 100% continued | ||||||
ViiV Healthcare Hong Kong Limited | Ordinary | 78.30% | 23/F Tower 6, The Gateway, 9 Canton Road, Harbour City, Tsimshatsui, Kowloon, Hong Kong | |||
ViiV Healthcare K.K. | Ordinary | 78.30% | 1-8-1 Minato-ku, Tokyo, Japan | |||
ViiV Healthcare Limited | A Ordinary; B Ordinary; C Ordinary; D1 Preference; D2 Ordinary; Deferred; E 5% Cumulative Preference |
78.30% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | |||
ViiV Healthcare Pty Ltd | Ordinary | 78.30% | 1061 Mountain Highway, Boronia Victoria VIC 3155, Australia | |||
ViiV Healthcare Puerto Rico, LLC | LLC Interests | 78.30% | Corporation Service Company Puerto Rico Inc., c/o RVM Professional Services, LLC, A4 Reparto Mendoza, Humacao, Puerto Rico, 00791 | |||
ViiV Healthcare S.r.l. | Quotas | 78.30% | Viale dell’Agricoltura 7, 37135, Verona, Italy | |||
ViiV Healthcare SAS | Ordinary | 78.30% | 23 rue François Jacob, 92500, Rueil-Malmaison, France | |||
ViiV Healthcare sprl | Ordinary | 78.30% | Site Apollo, Avenue Pascal 2-4-6, | |||
ViiV Healthcare Trading LLC (ii) | Participation Interest | 78.30% | Leningradskiy Prospect 37A, Building 4, Floor 2, Premises XIV, Room 28, 125167, Moscow, Russian Federation | |||
ViiV Healthcare Trading Services UK Limited | Ordinary | 78.30% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | |||
ViiV Healthcare UK (No.3) Limited | Ordinary | 78.30% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | |||
ViiV Healthcare UK (No.4) Limited | Ordinary | 78.30% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | |||
ViiV Healthcare UK (No.5) Limited | Ordinary | 78.30% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | |||
ViiV Healthcare UK (No.6) Limited | Ordinary | 78.30% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | |||
ViiV Healthcare UK (No.7) Limited | Ordinary | 78.30% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | |||
ViiV Healthcare UK Limited | Ordinary | 78.30% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | |||
ViiV Healthcare ULC | Common | 78.30% | 3500 855-2nd Street SW, Calgary AB T2P 4J8, Canada | |||
ViiV Healthcare Venture LLC | LLC Interest | 78.30% | Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808, United States | |||
ViiVHIV Healthcare Unipessoal Lda | Quota | 78.30% | Rua Dr Antonio Loureiro Borges No 3, Arquiparque, Miraflores, 1495-131, Alges, Portugal | |||
Winster Pharmaceuticals Limited | Ordinary | 46.42% | 2A Association Avenue, Ilupeju Industrial Estate, Lagos, PO Box 3199, Nigeria | |||
Name | Security | Effective % Ownership |
Registered address | |||
Associates |
||||||
GlaxoSmithKline Landholding Company, Inc | Common | 39.93% | 23rd Floor, The Finance Centre, 26th Street Corner 9th Avenue, Bonifacio Global City, Taguig City, 1634, Philippines | |||
Index Ventures Life VI (Jersey) LP | Partnership Interest (25%) | 25.00% | 44 Esplanade, St Helier, Jersey, JE4 9WG, Channel Islands | |||
Kurma Biofund II FCPR | Partnership Interest (32.06%) | 32.06% | 24 rue Royale, 5th Floor, 75008, Paris, France | |||
Longwood Fund I, LP | Partnership Interest (35%) | 35.00% | The Prudential Tower, Suite 1555, 800 Boylston Street, Boston, MA 02199 | |||
Medicxi Ventures I LP | Partnership Interest (26.19%) | 26.19% | 44 Esplanade, St Helier, Jersey, JE4 9WG, Channel Islands | |||
Joint Ventures |
||||||
Chiron Panacea Vaccines Private Limited | Equity Shares | 50.00% | 708/718, 7th Floor, A Wing, Sagar Tech Plaza, Saki Naka, Andheri East, Mumbai, Maharashtra, 400072, India | |||
Qualivax Pte. Limited | Ordinary | 50.00% | 80 Robinson Road, #02-00, 068898, Singapore | |||
Qura Therapeutics, LLC | Units | 39.15% | Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808, United States | |||
Other significant holdings |
||||||
Axon Therapies, Inc | Common (3.39%); Series A Preference (16.10%) |
20.03% | 315 west 36th street, New York 10018, USA | |||
Alpheus Medical, Inc. | Series A Preference (13.8%) Series A-1 Preference (7.29%) |
21.09% | 3510 Hopkins Place, North Oakdale, Minnesota 55128, USA | |||
Global Farm S.A. | A Shares (0%) B Shares (0%) C Shares (100%) |
20.00% | Mendoza 1259, Ciudad Autónoma de Buenos Aires, Argentina | |||
Longwood Fund II, LP | Partnership Interest (20.03%) | 20.03% | The Prudential Tower, Suite 1555, 800 Boylston Street, Boston, MA 02199 | |||
Sanderling Ventures VII, L.P. A63 | Partnership Interest (25.25%) | 25.25% | 400 S. El Camino Real, Suite 1200, San Mateo, CA 94402 | |||
SR One Capital Fund I-B, LP |
Partnership Interest (44%) | 44.00% | Corporation service company, 251 Little Falls Drive, City of Wilmington, County of New Castle, Delaware 19808 |
313 |
Name | Security | Effective % Ownership |
Registered address | Company Number | ||||
UK registered subsidiaries exempted from audit | ||||||||
Burroughs Wellcome International Limited | Ordinary | 100.00% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 543757 | ||||
Domantis Limited | Ordinary | 100.00% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 3907643 | ||||
Edinburgh Pharmaceutical Industries Limited (ii) | Ordinary; Preference; | 100.00% | Shewalton Road, Irvine, Ayrshire, KA11 5AP, United Kingdom | SC005534 | ||||
Eskaylab Limited | Ordinary | 100.00% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 99025 | ||||
Glaxo Wellcome UK Limited | Ordinary | 100.00% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 480080 | ||||
Glaxo Wellcome International B.V. (iii) | Ordinary | 100.00% | Huis ter Heideweg 62, 3705 LZ, Zeist, Netherlands | 30150600 | ||||
Glaxochem (UK) Unlimited | Ordinary; Ordinary B; Ordinary C |
100.00% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 4299472 | ||||
GlaxoSmithKline Intellectual Property (No.3) Limited | Ordinary | 100.00% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 11480952 | ||||
GlaxoSmithKline Intellectual Property (No.4) Limited | Ordinary | 100.00% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 11721880 | ||||
GlaxoSmithKline Intellectual Property (No.5) Limited | Ordinary | 100.00% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 11959399 | ||||
GlaxoSmithKline International Limited | Ordinary | 100.00% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 2298366 | ||||
GSK Capital B.V. (iii) (v) | Ordinary | 100.00% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 81761198 | ||||
GSK GP 1 Limited (iv) | A Shares; B Shares (0%) |
99.00% | 50 Lothian Road, Festival Square, Edinburgh, Scotland, EH3 9WJ, United Kingdom | SC721605 | ||||
GSK GP 2 Limited (iv) | Ordinary | 100.00% | 50 Lothian Road, Festival Square, Edinburgh, Scotland, EH3 9WJ, United Kingdom | SC721606 | ||||
GSK LP Limited (iv) | Ordinary | 100.00% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 13879411 | ||||
Montrose Fine Chemical Company Ltd. | Ordinary | 100.00% | Shewalton Road, Irvine, Ayrshire, KA11 5AP, United Kingdom | SC190635 | ||||
PHIVCO UK II Limited | Ordinary | 78.30% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 6944229 | ||||
PHIVCO UK Limited | Ordinary | 78.30% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 6944223 | ||||
Smith Kline & French Laboratories Limited | Ordinary | 100.00% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 52207 | ||||
SmithKline Beecham (Export) Limited | Ordinary | 100.00% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 2860752 | ||||
SmithKline Beecham (H) Limited | Non-cumulative Non-redeemable; Ordinary |
100.00% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 3296131 | ||||
SmithKline Beecham (Investments) Limited | Ordinary | 100.00% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 302065 | ||||
SmithKline Beecham Marketing and Technical Services Limited | Ordinary | 100.00% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 494385 | ||||
SmithKline Beecham Nominees Limited | Ordinary | 100.00% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 503868 | ||||
SmithKline Beecham Overseas Limited | Ordinary | 100.00% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 2552828 | ||||
Stiefel Laboratories (U.K.) Ltd | Ordinary | 100.00% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 831160 | ||||
Tesaro UK Limited | Ordinary | 100.00% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 7890847 | ||||
The Wellcome Foundation Limited | Ordinary | 100.00% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 194814 | ||||
ViiV Healthcare Overseas Limited | Ordinary | 78.30% | 980 Great West Road, Brentford, Middlesex, TW8 9GS, England | 7027385 |
(i) | Directly owned by GSK plc. |
(ii) | Dormant entity. |
(iii) | Tax resident in the UK. |
(iv) | Exempt under Regulation 7 of the Partnership (Accounts) Regulations 2008 from the requirement to deliver to the registrar financial statements of the qualifying partnership(s) of which the entity is a member in accordance with the Companies Act. |
(v) | Incorporated in the Netherlands |
(vi) | Consolidated as a subsidiary in accordance with Section 1162 (4)(a) of the Companies Act 2006 on the grounds of dominant influence. |
(vii) | Principal business address in Puerto Rico. |
(viii) | Exempt from the provisions of Regulations 4-6 of the Partnership (Accounts) Regulation 2008, in accordance with the exemptions noted in Regulation 7 of that Regulation. |
(ix) | GSK GP 1 Limited is a subsidiary undertaking of GSK plc and Berkeley Square Pension Trustee Company Limited and is the general partner of GSK (No.1) Scottish Limited Partnership and GSK (No.2) Scottish Limited Partnership. GSK GP 1 Limited’s share capital is 99% indirectly owned by GSK plc and 1% owned by Berkeley Square Pension Trustee Company Limited. |
(x) | GSK GP 2 Limited is a subsidiary undertaking of GSK plc and is the general partner of GSK (No.3) Scottish Limited Partnership. GSK GP 2 Limited’s share capital is 100% indirectly owned by GSK plc. |
314 |
GSK Annual Report 2022 |
Terms used in the Annual Report |
US equivalent or brief description | |
Accelerated capital allowances | Tax allowance in excess of depreciation arising from the purchase of fixed assets that delay the charging and payment of tax. The equivalent of tax depreciation. | |
American Depositary Receipt (ADR) | Receipt evidencing title to an ADS. Each GSK ADR represents two Ordinary Shares. | |
American Depositary Shares (ADS) | Listed on the New York Stock Exchange; represents two Ordinary Shares. | |
Basic earnings per share | Basic income per share. | |
Called up share capital | Ordinary Shares, issued and fully paid. | |
CER growth | Growth at constant exchange rates. | |
The company | GSK plc. | |
Currency swap | An exchange of two currencies, coupled with a subsequent re-exchange of those currencies, at agreed exchange rates and dates. | |
Defined benefit plan | Pension plan with specific employee benefits, often called ‘final salary scheme’. | |
Defined contribution plan | Pension plan with specific contributions and a level of pension dependent upon the growth of the pension fund. | |
Derivative financial instrument | A financial instrument that derives its value from the price or rate of some underlying item. | |
Diluted earnings per share | Diluted income per share. | |
Employee Share Ownership Plan Trusts | Trusts established by the Group to satisfy share-based employee incentive plans. | |
Equity Shareholders’ funds | Shareholders’ equity. | |
Finance lease | Capital lease. | |
Freehold | Ownership with absolute rights in perpetuity. | |
The Group | GSK plc and its subsidiary undertakings. | |
GSK | GSK plc and its subsidiary undertakings. | |
Hedging | The reduction of risk, normally in relation to foreign currency or interest rate movements, by making off-setting commitments. | |
Intangible fixed assets | Assets without physical substance, such as computer software, brands, licences, patents, know-how and marketing rights purchased from outside parties. | |
Ordinary share | A fully paid up ordinary share in the capital of the company. | |
Profit | Income. | |
Profit attributable to shareholders | Net income. | |
Share capital | Ordinary Shares, capital stock or common stock issued and fully paid. | |
Share option | Stock option. | |
Share premium account | Additional paid-up capital or paid-in surplus (not distributable). | |
Shares in issue | The number of shares outstanding. | |
Subsidiary | An entity in which GSK exercises control. | |
Treasury share | Treasury stock. | |
Turnover | Revenue. | |
UK Corporate Governance Code | As required by the UK Listing Authority, the company has disclosed in the Annual Report how it has applied the best practice corporate governance provisions of the Financial Reporting Council’s UK Corporate Governance Code. |
315 |
2022 Remuneration policy summary |
133 | |||
Access |
43 | |||
Accounting principles and policies |
186 | |||
Acquisitions and disposals |
237 | |||
Adjustments reconciling Total profit after tax to operating cash flows |
242 | |||
Annual General Meeting 2023 |
299 | |||
Approach to tax |
92 | |||
Assets held for sale |
216 | |||
Associates and joint ventures |
203 | |||
Audit & Risk Committee Report |
124 | |||
Business model |
08 | |||
Cash and cash equivalents |
216 | |||
Cash generation and conversion |
86 | |||
CEO’s statement |
06 | |||
Chair’s statement |
04 | |||
Chair’s Governance statement |
103 | |||
Chair’s Remuneration annual statement |
133 | |||
Climate-related financial disclosure |
55 | |||
Commitments |
232 | |||
Consolidated balance sheet |
183 | |||
Consolidated cash flow statement |
185 | |||
Consolidated income statement |
182 | |||
Consolidated statement of changes in equity |
184 | |||
Consolidated statement of comprehensive income |
182 | |||
Contingent consideration liabilities |
231 | |||
Contingent liabilities |
232 | |||
Corporate governance |
96 | |||
Corporate Responsibility Committee Report |
117 | |||
Critical accounting judgements and key sources of estimation uncertainty |
192 | |||
Critical accounting policies |
94 | |||
Data and engagement |
49 | |||
Demerger of Consumer Healthcare business |
238 | |||
Directors and senior management |
156 | |||
Directors’ interests in shares |
154 | |||
Directors’ report |
130 | |||
Directors’ statement of responsibilities |
166 | |||
Dividends |
207 | |||
Donations to political organisations and political expenditure |
306 | |||
Earnings per share |
207 | |||
Employee costs |
200 | |||
Employee share schemes |
262 | |||
Environment |
45 | |||
Ethical standards |
48 | |||
Exchange rates |
194 | |||
Finance expense |
202 | |||
Finance income |
202 | |||
Financial calendar 2023 |
299 | |||
Financial instruments and related disclosures |
245 | |||
Financial performance |
68 | |||
Financial position and resources |
87 | |||
Financial statements of GSK plc, prepared under UK GAAP |
268 | |||
General Medicines |
38,75 | |||
Glossary of terms |
215 | |||
Goodwill |
210 | |||
Group companies |
307 | |||
Group financial review |
65 | |||
GSK Leadership Team |
101 | |||
Independent Auditor’s report |
168 | |||
Innovation |
09 | |||
Inventories |
215 | |||
Investments in associates and joint ventures |
213 | |||
Investor relations |
303 |
Key performance indicators |
02 | |||
Legal proceedings |
265 | |||
Major restructuring costs |
201 | |||
Movements in equity |
233 | |||
Net debt |
218 | |||
New accounting requirements |
194 | |||
Nominations Committee Report |
120 | |||
Non-controlling interests |
235 | |||
Non-controlling interests in ViiV Healthcare |
71 | |||
Non-Executive Directors’ fees |
152 | |||
Non-financial information statement |
63 | |||
Notes to the financial statements |
186 | |||
Operating profit |
199 | |||
Other intangible assets |
211 | |||
Other investments |
214 | |||
Other non-current assets |
215 | |||
Other non-current liabilities |
232 | |||
Other operating income/(expense) |
198 | |||
Other provisions |
229 | |||
Our culture |
10 | |||
Our external environment |
12 | |||
Our long-term priorities |
09 | |||
Pensions and other post-employment benefits |
220 | |||
Performance |
02 | |||
Pharmaceutical products, competition and intellectual property |
281 | |||
Pipeline |
278 | |||
Post balance sheet events |
267 | |||
Presentation of the financial statements |
269 | |||
Principal Group companies |
264 | |||
Principal risks and uncertainties |
285 | |||
Property, plant and equipment |
208 | |||
Reconciliation of net cash flow to movement in net debt |
243 | |||
Registrar |
302 | |||
Related party transactions |
236 | |||
Reliable supply |
17 | |||
Remuneration governance |
150 | |||
Remuneration report |
132 | |||
Reporting framework |
69 | |||
Responsible business |
42 | |||
Right of use assets |
209 | |||
Risk management |
51 | |||
Science and technology |
16 | |||
Science Committee report |
118 | |||
Section 172 statement |
112 | |||
Share capital and control |
296 | |||
Share capital and share premium account |
233 | |||
Share Consolidation |
233 | |||
Shareholder information |
296 | |||
Shareholder services and contacts |
302 | |||
Specialty Medicines |
33,73 | |||
Stakeholder engagement |
112 | |||
Task Force on Climate-related Financial Disclosures |
55 | |||
Taxation |
204 | |||
Tax information for shareholders |
299 | |||
Three-year selected financial data |
276 | |||
The Board |
97 | |||
Trade and other payables |
217 | |||
Trade and other receivables |
215 | |||
Treasury policies |
93 | |||
Trust |
09 | |||
Turnover and segment information |
195 | |||
US law and regulation |
304 | |||
Vaccines |
29,74 | |||
Vaccine products, competition and intellectual property |
284 | |||
Viability statement |
64 |
316 |
GlaxoSmithKline plc was incorporated as an English public limited company on 6 December 1999. We were formed by a merger between Glaxo Wellcome plc and SmithKline Beecham plc. GSK acquired these two English companies on 27 December 2000 as part of the merger arrangements. Effective 15 May 2022 GlaxoSmithKline plc changed its name to GSK plc. On 18 July 2022, GSK plc, separated its Consumer Healthcare business from the GSK Group to form Haleon, an independent listed company. Our shares are listed on the London Stock Exchange and the New York Stock Exchange. www.gsk.com |
Brand names appearing in italics throughout this report are trade marks either owned by and/or licensed to GSK or associated companies. All other trade marks are the property of their respective owners. Printed sustainably in the UK by Pureprint, a CarbonNeutral ® company with FSC® chain of custody and an ISO 14001 certified environmental management system recycling over 99% of all dry waste.Printed on Arena ECO 50 EW Smooth, a wood free uncoated paper, ECF with FSC certification and made from 50% recycled fibre. Download PDFs: – Annual Report 2022 – Form 20-F – ESG Performance Report 2022 |
Head Office and Registered Office GSK plc 980 Great West Road Brentford, Middlesex TW8 9GS United Kingdom Tel: +44 (0)20 8047 5000 Registered number: 3888792 |