GlaxoSmithKline Consumer Healthcare Ltd Analyst Presentation

Q 4 2011 Update

6th February 2012

AGENDA

Quarter highlights

Financial Performance

Working Capital

Market Performance

Quarter Highlights

Impressive Sales Growth at 19% • Driven by volume growth of 11% • Successful launch of OATS in South market

Investments behind brands continue ; A&P as % sales at 19%

Material cost higher by 40 bps • High Input costs • Mitigated by emphasis on Cost reduction initiatives

PBT grew by 22% Q on Q

PAT growth by 11% due to prior year adjustment (Intrinsic growth @ 23%)

Profitably Doubling Business 2007 - 2011

A vision crafted for the Organization in 2007….. Achieved in 2011

2007 2011

Sales (Rs cr) 1396

PBT (Rs cr)

2832

245 540

Business doubled in 2011

53

59

Q 4 10 Q 4 11

PAT

80

97

Q 4 10 Q 4 11

PBT

536

635

Q 4 10 Q 4 11

Sales (Gross)

Sustained Growth….

Rs in crs

508

602

Q 4 10 Q 4 11

Sales (Net)

Regional Split

% share to total sales

92%

8%

Domestic Exports

6%

36%

46%

4% 8%

North East South West Exports

8% 11%

Q on Q sales growth

Price

Volume Overall Growth

19%

Other Income growing fast….

Rs in crs

12

16

6

16

22

10

Business Auxillary Comm Interest Income Others

Q 4 10 Q 4 11

18

20

22

24

26

28

Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q 4 11

Malted Barley

High inflation continues 18%

-

5

10

15

20

25

30

35

40

45

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

Sugar

Inflationary trend in input costs

at all time high levels

Represents Q on Q inflation

3%

14 14 15 15 16 16 17 17 18 18

Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11

Wheat Flour

Remains flat Q on Q

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

SMP 30%

35%

24%

18%

12%

2%

36%

25%

19%

10%

2%

Material Other Costs A&P Employee Dep

Q 4 10 Q 4 11

Our Cost Structures…..

Cost as % to sales

Inflation hits RM

costs

Investment behind brands

continues

Sustained Negative Working Capital …..

43

(61) (69)

(118)

(65)

(160)

(108)

(211)

(102)

(203)

(176)

Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11

Net WC

Market Performance……

GSK outperforms Sensex and FMCG index

14091

596

Jan

-07

Fe

b-0

7

Mar

-07

A

pr-

07

M

ay-0

7

Jun

-07

Ju

l-0

7

Au

g-0

7

Sep

-07

O

ct-0

7

No

v-0

7

Dec

-07

Ja

n-0

8

Feb

-08

M

ar-0

8

Ap

r-0

8

May

-08

Ju

n-0

8

Jul-

08

A

ug-

08

Se

p-0

8

Oct

-08

N

ov-

08

D

ec-0

8

Jan

-09

Fe

b-0

9

Mar

-09

A

pr-

09

M

ay-0

9

Jun

-09

Ju

l-0

9

Au

g-0

9

Sep

-09

O

ct-0

9

No

v-0

9

Dec

-09

Ja

n-1

0

Feb

-10

M

ar-1

0

Ap

r-1

0

May

-10

Ju

n-1

0

Jul-

10

A

ug-

10

Se

p-1

0

Oct

-10

N

ov-

10

D

ec-1

0

Jan

-11

Fe

b-1

1

Mar

-11

A

pr-

11

M

ay-1

1

Jun

-11

Ju

l-1

1

Au

g-1

1

Sep

-11

O

ct-1

1

No

v-1

1

Dec

-11

Sensex FMCG GSK

15455

2541

4035

1906

Thank you