Annual Report 2017

"The Board believes the renewed focus on innovation will enable GSK to capitalise on the opportunities in our industry to drive long-term value for investors.”

Philip Hampton, Chairman 

Chairman's statement

Emma Walmsley GSK CEO

"Our ambition is to drive a high-performance culture putting science at the heart of GSK, remaining true to our values and purpose: to help people do more, feel better, live longer."

Emma Walmsley, Chief Executive Officer

CEO's statement

Our long-term priorities

In 2017 we set out three long-term priorities which we believe will deliver improved performance and better returns over the short and long term.

A strong patient and payer focused pipeline, with the most competitive claims and labels, and brilliant execution of our launches.


Sustained industry-leading growth with competitive costs, margin and cash flow.


Maximising our social impact, ensuring the reliable supply of our high-quality products to as many people as possible, and having highly engaged employees.


2017 Group performance*

  • £30.2bn

    Group turnover AER + 8% CER +3%

  • £4.1bn

    Total operating profit +57% CER +39%

  • £8.6bn

    Adjusted operating profit AER + 12% CER +5%

  • £6.7bn

    New product sales** AER + 51% CER +44%

  • 31.4p

    Total earnings per share AER +67% CER +36%

  • 111.8p

    Adjusted earnings per share AER +11% CER +4%

  • £6.9bn

    Net cash flow from operating activities

  • £3.4bn

    Free cash flow

  • £3.9bn

    Dividends declared for 2017

  • 80p

    Dividend per share

GSK at a glance

About us

Our purpose and goal

Our purpose is to help people do more, feel better and live longer.

Our goal is to be one of the world’s most innovative, best performing and trusted healthcare companies.

Our strategy

Bring differentiated, high-quality and needed healthcare products to as many people as possible, with our three global businesses, scientific and technical know-how and talented people.

Our values and expectations

Our values and expectations are at the heart of everything we do and form an important part of our culture. 

Our values are Patient focus, Transparency, Respect, Integrity. 

Our expectations are Courage, Accountability, Development, Teamwork.


Immune system T-cells attacking a cancer cell

Pharmaceuticals turnover: £17.3bn +7% AER, +3% CER (57% of Group turnover)

  • £7.0bn


  • £4.3bn


  • £0.4bn


  • £5.6bn

    Established Pharmaceuticals


Herpes zoster virus of shingles

Vaccines turnover: £5.2bn +12% AER, +6% CER (17% of Group turnover)

  • £0.9bn


  • £0.5bn


  • £22m


  • £3.8bn

    Established vaccines

Consumer Healthcare

Novamin, a key technology in Sensodyne Repair and Protect

Consumer Healthcare turnover: £7.8bn +8% AER, +2% CER (26% of Group turnover)

  • £4.0bn


  • £2.5bn

    Oral health

  • £0.7bn


  • £0.6bn

    Skin health


Adjusted exchange rate (AER) growth rates represent growth at actual exchange rates. We use a number of adjusted, non-IFRS, measures to report the performance of our business, as described on page 58 of the Annual Report, including Adjusted results, free cash flow and constant exchange rates (CER) growth rates. These measures are used by management for planning and reporting purposes and may not be directly comparable with similarly described measures used by other companies. Adjusted results exclude a number of items and are presented as management believes that Adjusted results allow the key trends and factors driving that performance to be more easily and clearly identified by shareholders. Non-IFRS measures may be considered in addition to, but not as a substitute for or superior to, information presented in accordance with IFRS. A reconciliation of total results to Adjusted results is set out on page 67 of the Annual Report.

** As defined in 2015, new products are as follows: Pharmaceuticals: Relvar/Breo Ellipta, Incruse Ellipta, Anoro Ellipta, Arnuity Ellipta, Eperzan/Tanzeum, Nucala, Tivicay, Triumeq. Vaccines: Menveo, Bexsero, Shingrix.

The information contained on this Annual Report 2017 summary page of is a summary of and contains extracts from the GSK Annual Report and Accounts 2017. The summary or extracts alone do not contain sufficient information to allow a full understanding of the results and state of affairs of GlaxoSmithKline PLC or the GSK Group. For further information the GSK Annual Report and Accounts 2017 should be consulted, including the cautionary statement on forward looking statements which can be found on the inside back cover.