Strategic report report Governance and and remuneration remuneration Financial statements statements Investor information information Investor information In this section Quarterly trend 244 Pharmaceuticals turnover 246 Vaccines turnover 248 Five year record 249 Product development pipeline 255 Products, competition and intellectual property 258 Principal risks and uncertainties 261 Share capital and control 276 Dividends 278 Financial calendar 2021 279 Annual General Meeting 2021 279 Tax information for shareholders 280 Shareholder services and contacts 282 US law and regulation 284 Group companies 287 Glossary of terms 299 GSK Annual Report 2020 243 Financial record Quarterly trend An unaudited analysis of the Group results is provided by quarter in Sterling for the financial year 2020. Income statement – Total 12 months 2020 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Reported Pro-forma Reported Reported Reported Reported £m £% CER% CER% £m £% CER% £m £% CER% £m £% CER% £m £% CER% Turnover Pharmaceuticals 17,056 (3) (1) (1) 4,366 (4) (3) 4,192 (7) (3) 4,102 (5) (5) 4,396 6 6 Vaccines 6,982 (2) (1) (1) 2,012 15 16 2,032 (12) (9) 1,133 (29) (29) 1,805 19 19 Consumer Healthcare 10,033 12 14 (2) 2,360 (8) (7) 2,422 (4) 2 2,389 25 25 2,862 44 46 34,071 1 3 (2) 8,738 (1) – 8,646 (8) (3) 7,624 (2) (3) 9,063 18 19 Corporate and other unallocated turnover 28 1 – – 27 Total turnover 34,099 1 3 (2) 8,739 (2) (1) 8,646 (8) (3) 7,624 (2) (3) 9,090 19 19 Cost of sales (11,704) (1) – (3,171) (2) (2) (2,885) (11) (8) (2,449) (7) (7) (3,199) 17 18 Selling, general and administration (11,456) – 2 (3,162) (8) (6) (2,669) (8) (4) (2,709) 5 5 (2,916) 18 19 Research and development (5,098) 12 12 (1,470) 18 19 (1,140) (5) (2) (1,301) 17 15 (1,187) 18 18 Royalty income 318 (9) (9) 91 11 12 85 (28) (26) 75 (4) (10) 67 (8) (5) Other operating income/(expense) 1,624 34 (179) 1,610 159 Operating profit 7,78 3 12 15 1,061 (44) (44) 1,858 (13) (2) 2,850 92 90 2,014 41 42 Net finance costs (848) (234) (198) (228) (188) Share of after-tax profits/(losses) of associates and joint ventures 33 (6) 11 19 9 Profit before taxation 6,968 12 16 821 (52) (52) 1,671 (14) (2) 2,641 >100 >100 1,835 42 42 Taxation (580) 18 (241) (201) (156) Tax rate % 8.3% (2.2)% 14.4% 7.6% 8.5% Profit after taxation for the period 6,388 21 25 839 (45) (45) 1,430 (17) (5) 2,440 >100 >100 1,679 70 71 Profit attributable to non-controlling interests 639 162 186 177 114 Profit attributable to shareholders 5,749 677 1,244 2,263 1,565 Basic earnings per share (pence) 115.5p 23 26 13.6p (48) (48) 25.0p (20) (9) 45.5p >100 >100 31.5p 87 89 Diluted earnings per share (pence) 114.1p 13.4p 24.7p 45.0p 31.2p Income statement – Adjusted Total turnover 34,099 1 3 (2) 8,739 (2) (1) 8,646 (8) (3) 7,624 (2) (3) 9,090 19 19 Cost of sales (10,191) 1 2 (3) (2,792) (2) (2) (2,540) (9) (6) (2,249) – – (2,610) 18 20 Selling, general and administration (10,717) – 2 (3) (2,924) (6) (4) (2,477) (11) (7) (2,530) 4 4 (2,786) 16 18 Research and development (4,603) 6 7 6 (1,297) 11 12 (1,049) (10) (6) (1,171) 13 11 (1,086) 12 11 Royalty income 318 (9) (9) (9) 91 11 12 85 (28) (26) 75 (4) (10) 67 (8) (5) Operating profit 8,906 (1) 2 (3) 1,817 (2) (1) 2,665 (4) 4 1,749 (19) (21) 2,675 24 24 Net finance costs (844) (233) (197) (227) (187) Share of after-tax profits/(losses) of associates and joint ventures 33 (6) 11 19 9 Profit before taxation 8,095 (2) 1 1,578 (5) (5) 2,479 (5) 4 1,541 (21) (22) 2,497 23 23 Taxation (1,295) (220) (417) (316) (342) Tax rate % 16.0% 13.9% 16.8% 20.5% 13.7% Profit after taxation for the period 6,800 (2) 1 1,358 (6) (6) 2,062 (6) 3 1,225 (26) (27) 2,155 32 32 Profit attributable to non-controlling interests 1,031 195 287 267 282 Profit attributable to shareholders 5,769 1,163 1,775 958 1,873 Adjusted earnings per share (pence) 115.9p (6) (4) 23.3p (6) (5) 35.6p (8) 1 19.2p (37) (38) 37.7 p 25 26 The calculation of Adjusted results is described on page 51. 244 GSK Annual Report 2020 Strategic report Governance and remuneration Financial statements Investor information Financial record continued Quarterly trend Quarterly trend continued An unaudited analysis of the Group results is provided by quarter in Sterling for the financial year 2020. Income statement – Total 12 months 2020 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Reported Pro-forma Reported Reported Reported Reported £m £% CER% CER% £m £% CER% £m £% CER% £m £% CER% £m £% CER% Turnover Pharmaceuticals 17,056 (3) (1) (1) 4,366 (4) (3) 4,192 (7) (3) 4,102 (5) (5) 4,396 6 6 Vaccines 6,982 (2) (1) (1) 2,012 15 16 2,032 (12) (9) 1,133 (29) (29) 1,805 19 19 Consumer Healthcare 10,033 12 14 (2) 2,360 (8) (7) 2,422 (4) 2 2,389 25 25 2,862 44 46 34,071 1 3 (2) 8,738 (1) – 8,646 (8) (3) 7,624 (2) (3) 9,063 18 19 Corporate and other unallocated turnover 28 1 – – 27 Total turnover 34,099 1 3 (2) 8,739 (2) (1) 8,646 (8) (3) 7,624 (2) (3) 9,090 19 19 Cost of sales (11,704) (1) – (3,171) (2) (2) (2,885) (11) (8) (2,449) (7) (7) (3,199) 17 18 Selling, general and administration (11,456) – 2 (3,162) (8) (6) (2,669) (8) (4) (2,709) 5 5 (2,916) 18 19 Research and development (5,098) 12 12 (1,470) 18 19 (1,140) (5) (2) (1,301) 17 15 (1,187) 18 18 Royalty income 318 (9) (9) 91 11 12 85 (28) (26) 75 (4) (10) 67 (8) (5) Other operating income/(expense) 1,624 34 (179) 1,610 159 Operating profit 7,78 3 12 15 1,061 (44) (44) 1,858 (13) (2) 2,850 92 90 2,014 41 42 Net finance costs (848) (234) (198) (228) (188) Share of after-tax profits/(losses) of associates and joint ventures 33 (6) 11 19 9 Profit before taxation 6,968 12 16 821 (52) (52) 1,671 (14) (2) 2,641 >100 >100 1,835 42 42 Taxation (580) 18 (241) (201) (156) Tax rate % 8.3% (2.2)% 14.4% 7.6% 8.5% Profit after taxation for the period 6,388 21 25 839 (45) (45) 1,430 (17) (5) 2,440 >100 >100 1,679 70 71 Profit attributable to non-controlling interests 639 162 186 177 114 Profit attributable to shareholders 5,749 677 1,244 2,263 1,565 Basic earnings per share (pence) 115.5p 23 26 13.6p (48) (48) 25.0p (20) (9) 45.5p >100 >100 31.5p 87 89 Diluted earnings per share (pence) 114.1p 13.4p 24.7p 45.0p 31.2p Income statement – Adjusted Total turnover 34,099 1 3 (2) 8,739 (2) (1) 8,646 (8) (3) 7,624 (2) (3) 9,090 19 19 Cost of sales (10,191) 1 2 (3) (2,792) (2) (2) (2,540) (9) (6) (2,249) – – (2,610) 18 20 Selling, general and administration (10,717) – 2 (3) (2,924) (6) (4) (2,477) (11) (7) (2,530) 4 4 (2,786) 16 18 Research and development (4,603) 6 7 6 (1,297) 11 12 (1,049) (10) (6) (1,171) 13 11 (1,086) 12 11 Royalty income 318 (9) (9) (9) 91 11 12 85 (28) (26) 75 (4) (10) 67 (8) (5) Operating profit 8,906 (1) 2 (3) 1,817 (2) (1) 2,665 (4) 4 1,749 (19) (21) 2,675 24 24 Net finance costs (844) (233) (197) (227) (187) Share of after-tax profits/(losses) of associates and joint ventures 33 (6) 11 19 9 Profit before taxation 8,095 (2) 1 1,578 (5) (5) 2,479 (5) 4 1,541 (21) (22) 2,497 23 23 Taxation (1,295) (220) (417) (316) (342) Tax rate % 16.0% 13.9% 16.8% 20.5% 13.7% Profit after taxation for the period 6,800 (2) 1 1,358 (6) (6) 2,062 (6) 3 1,225 (26) (27) 2,155 32 32 Profit attributable to non-controlling interests 1,031 195 287 267 282 Profit attributable to shareholders 5,769 1,163 1,775 958 1,873 Adjusted earnings per share (pence) 115.9p (6) (4) 23.3p (6) (5) 35.6p (8) 1 19.2p (37) (38) 37.7 p 25 26 The calculation of Adjusted results is described on page 51. GSK Annual Report 2020 245 Financial record continued Pharmaceutical turnover by therapeutic area 2020 Total US Europe International 2020 2019 Growth 2020 Growth 2020 Growth 2020 Growth Therapeutic area/major products £m £m £% CER% £m £% CER% £m £% CER% £m £% CER% Respiratory 3,749 3,081 22 23 2,114 21 23 944 21 20 691 24 27 Ellipta products 2,755 2,313 19 20 1,516 18 19 706 22 22 533 19 22 Anoro Ellipta 547 514 6 8 327 1 2 142 18 17 78 11 17 Arnuity Ellipta 45 48 (6) (6) 37 (10) (7) – – – 8 14 – Incruse Ellipta 220 262 (16) (15) 117 (27) (27) 74 1 1 29 4 7 Relvar/Breo Ellipta 1,124 971 16 17 474 24 25 322 14 13 328 6 9 Trelegy Ellipta 819 518 58 59 561 47 48 168 65 65 90 >100 >100 Nucala 994 768 29 30 598 32 33 238 16 15 158 45 46 HIV 4,876 4,854 – 1 3,005 – 1 1,213 5 4 658 (5) (1) Dolutegravir products 4,702 4,633 1 2 2,941 – 1 1,163 7 6 598 (2) 3 Tivicay 1,527 1,662 (8) (7) 871 (11) (10) 368 (7) (8) 288 (1) 5 Triumeq 2,306 2,549 (10) (9) 1,454 (10) (9) 568 (9) (10) 284 (9) (6) Juluca 495 366 35 36 387 28 29 97 73 71 11 57 71 Dovato 374 56 >100 >100 229 >100 >100 130 >100 >100 15 >100 >100 Epzicom/Kivexa 31 75 (59) (59) 1 (67) (67) 9 (61) (61) 21 (57) (57) Selzentry 91 97 (6) (5) 47 (11) (11) 27 (7) (7) 17 13 20 Rukobia 11 – – – 11 – – – – – – – – Other 41 49 (16) (12) 5 (50) (40) 14 (22) (17) 22 5 5 Immuno-inflammation 727 613 19 20 612 14 16 56 22 20 59 84 91 Benlysta 719 613 17 19 612 14 16 56 22 20 51 59 66 Oncology 372 230 62 62 231 72 74 136 42 40 5 – – Zejula 339 229 48 48 206 54 55 128 35 33 5 – – Blenrep 33 – – – 25 – – 8 – – – – – Pharmaceuticals excluding established products 9,724 8,778 11 12 5,962 10 11 2,349 13 12 1,413 10 14 Established pharmaceuticals 7,332 8,776 (16) (15) 1,489 (25) (24) 1,755 (14) (15) 4,088 (14) (11) Established Respiratory 3,251 3,900 (17) (15) 1,048 (26) (25) 738 (9) (9) 1,465 (13) (10) Seretide/Advair 1,535 1,730 (11) (10) 434 (14) (13) 449 (11) (11) 652 (10) (7) Flixotide/Flovent 419 629 (33) (32) 183 (50) (50) 80 (9) (10) 156 (10) (5) Ventolin 785 938 (16) (14) 430 (21) (20) 116 (3) (4) 239 (12) (7) Avamys/Veramyst 297 324 (8) (6) – – – 66 (4) (4) 231 (10) (7) Other Respiratory 215 279 (23) (23) 1 >100 >100 27 (4)