KUWAIT SALES CONFERENCE

“Together We Exceed”

22nd – 23rd November 2009

Hilton Hotel
 Emerging Markets have significant
growth potential

Pharma market sales in EM will double by 2015

CAGR
12% 106

x2

48

2008 2015

18% of global pharma market by 2015

Source: Team analysis

 Emerging Markets growth will be strongly
supported by all three pillars of the business

Emerging Markets sales £bn, % % of sales

6.3 2009 2015

1.5
Vaccines* 18% 24%
5.0

1.2
3.7
2.1
0.8 Patent-protected 31% 33%
1.6
2.5
0.5 1.1

0.8
2.7 Non patent-protected 51% 43%
2.2
1.8
1.2

2009 2011 2013 2015

*Excluding GAVI sales aspiration of £577m for Emerging Markets in 2015

Source: Country workshops; team analysis
GNE - NET SALES

2007 2010
1m
£ £ 15
0 m 19 £
£7 7m 23
Egypt/ Pakistan 9m
Sudan /Iran
Turkey Turkey

5m
11% Egypt/ 14%
30% 22%

£ 15
North Africa Sudan
£ 91m

14% 14%

Saudia
GNE
GNE Arabia
Pakistan

m
/Iran 17%

£1
14% 16% North Africa

85
Saudi
m
£

77

£1
92

16

Arabia 18%
m
17%
m

£1

14%

£ 93m £ 185m

Turkey Pakistan Saudi Arabia Turkey GNE North Africa

GNE North Africa Egypt Saudia Arabia Egypt/Sudan Pakistan/Iran
GNE - OPERATING PROFIT

2007 2010

Egypt/
Egypt/
Sudan
Sudan
Pakistan
7%
Turkey /Iran 9% GNE
North Africa
32% 11% 23%
14%

North Africa
Saudi Arabia,
15%
14% Turkey
GNE
Saudi Arabia
Pakistan 22%
/Iran 18%
19%

15%

GNE Pakistan/ Iran Saudi Arabia Turkey Saudi Arabia North Africa

North Africa Egypt/ Sudan Turkey Pakistan/ iran Egypt/ Sudan GNE
 Gulf and Near East Vision 2008 – 2015

340
320 Rx Vx 311
300
UCB Iraq Vx 280
280
260
Iraq Rx Ox 254
240 Bx Gx 229
Turnover £m

220
202
200
180
166
160
140 136
120
101
100
80
60
40
20
0
2008 2009 2010 2011 2012 2013 2014 2015

Years
(Numbers in £ m)
To Market Achievement YTD Sept 2009

YTD Sept 2009 Gulf

£M Ach % Gr

TOTAL 69.3 33%

Vaccines 13.2 30%

Augmentin 10.3 8%

Seretide 3.7 -12%

Avandia family 1.1 -41%

CNS 2.2 11%

Zinnat 3.9 -19%

Oncology 1.8 -18%

UCB 9.2 -
Gulf – Pillars of Growth

People
Patent Protected products
Vaccines franchise
Oncology
UCB/ BMS portfolios
Stiefel
20/80 Project
Improve Access through
― tiered pricing
― local packaging options
― second brands
 Filling the gap

2009 £000's UAE KWT QATAR BAH YEMEN OMAN TOTAL

TOTAL 08 ACH 34,343 15,171 7,468 5,277 5,154 4,881 72,294
% OF CONT 48% 21% 10% 7% 7% 7%
AVANDIA FAMILY ACH 1,893 112 160 177 27 67 2,436
% OF CONT 78% 5% 7% 7% 1% 3%
SERETIDE ACH 2,802 2,403 910 412 - 410 6,937
% OF CONT 40% 35% 13% 6% 0% 6%
AUGMENTIN ACH 7,065 1,983 1,510 586 1,044 860 13,048
% OF CONT 54% 15% 12% 4% 8% 7%
ZINNAT ACH 3,106 1,122 820 450 381 272 6,151
% OF CONT 50% 18% 13% 7% 6% 4%
ANESTHESIA ACH 814 894 496 263 87 221 2,775
% OF CONT 29% 32% 18% 9% 3% 8%
LAMICTAL/KEPPRA ACH 1,447 1,931 316 304 100 302 4,400
% OF CONT 33% 44% 7% 7% 2% 7%
SEROXAT ACH 358 316 172 134 86 245 1,311
% OF CONT 27% 24% 13% 10% 7% 19%

Less by 1 or 2% Equal/More by 1 or 2%
Less by 3% or more Equal/More than 3%
 Filling the gap (contd.)

2009 £000's UAE KWT QATAR BAH YEMEN OMAN TOTAL

TOTAL 08 ACH 34,343 15,171 7,468 5,277 5,154 4,881 72,294
% OF CONT 48% 21% 10% 7% 7% 7%
VACCINES ACH 10,475 3,251 1,697 2,773 3,115 1,659 22,970
% OF CONT 46% 14% 7% 12% 14% 7%
ANTIVIRAL ACH 6,346 697 221 694 - 310 8,268
% OF CONT 77% 8% 3% 8% 0% 4%
GASTRO ACH 956 660 344 73 153 167 2,353
% OF CONT 41% 28% 15% 3% 7% 7%
FLIXONASE/AVAMYS ACH 1,526 644 190 157 13 50 2,580
% OF CONT 59% 25% 7% 6% 1% 2%
ONCOLOGY ACH 1,061 977 276 151 27 104 2,596
% OF CONT 41% 38% 11% 6% 1% 4%
BACTROBAN ACH 608 215 118 56 2 72 1,071
% OF CONT 57% 20% 11% 5% 0% 7%
AMOXIL ACH 830 102 128 65 443 276 1,844
% OF CONT 45% 6% 7% 4% 24% 15%
XYZAL/ZYRTEC ACH 1,827 1,869 520 143 209 220 4,788
% OF CONT 38% 39% 11% 3% 4% 5%

Less by 1 or 2% Equal/More by 1 or 2%
Less by 3% or more Equal/More than 3%
Incentives

Annual Incentive
Exceedership
Excellence Recognition Award
PAL Incentive
WOW
GNE Field Force Pay 4 Performance

2009

TotalCash TotalReward
 P4P Vision

• We have a number of incentive schemes

• Confusion and Consistency on eligibility and implementation

Go To
• Simple

• Key Differentiation for Excellent Performance

• Aligned with the GSK Global Bonus Plans & Commercial
targets
• Promoting Recognition that is not only Financial.
• Measures are both financial and behavioural
 GNE Field Force 2009
Pay for Performance (P4P)

Two elements to
the scheme

Annual Reward AllStars Reward

Annual Reward AllStars Reward

Reward based on performance
vs. targets Annual Incentive Trip
 Eligibility

• All Field Force Employees within the D band

• Field Force Employees who transfer between markets will be
assessed on their achievements in both markets and then an
overall rating and achievement will be confirmed.
• Any new employees starting after the 1st January will have their
targets set for the period that they have in role that year.
• Award year is 1st January to 31st December
 GNE Field Force Sales P4P - Annual Reward

• How much can a representative earn through the Primary Care Salesforce Annual Reward?

Vs Target (In Market Sales) Award

Level (base pay)

95% 2 weeks
98% 3 weeks
100% 4 weeks
105% 8 weeks
110% 12
weeks
115% 16
weeks
120% 18
weeks
125% 20
weeks
 ALLSTARS

The recognition incentive programme

 AllStars Event

P4P

Top 10 employees across GNE

Overseas Event hosted

by a member of the
Senior Management
Team
2 2 5
3 0 8
4 2 1

90%
Strategic priorities and plans

Strategic priorities Plans

1. Drive growth in Rx business in core markets

2. Deliver ambitious vaccines forecast
Grow a diversified, 3. Significantly grow consumer healthcare business
global business 4. Fulfil growth potential of emerging markets
5. Drive expansion of Japan business
6. Explore further growth enhancing opportunities

7. Increase flow, enhance quality, drive reimbursement

Deliver more 8. Significantly grow biopharm capability
products of value 9. Enhance productivity for Drug Discovery including externalisation
10. Simplifying Clinical R&D

11. Evolve commercial model to empower markets

12. Transforming GMS
Simplify the 13. Simplify support functions and fixed asset base
operating model 14. Simplify the planning process
15. Improve working capital

16. Create a culture of individual empowerment

Individual empowerment 17. Create a talent organisation

18. Create a sustainable licence to operate and adopt the

Build trust 'high ground' in how we conduct our business
Behaviours

Flexible Thinking
Continuous Improvement
Customer Driven

Developing People
Enable and Drive Change
Building Relationships
What Empowerment Is

Empowerment is trusting people to do their job,

by using good judgement, within a clearly
defined and understood framework of
responsibility.
For the individual it means demonstrating the
highest level of integrity, having clarity around
their role, and ensuring they are accountable for
their decisions.
For managers it means giving people the
confidence to make decisions by providing clear
direction, support and advice.
Thank you