Annual General Meeting Thursday 6 May 2010

Andrew WittyChief Executive Officer

Strategic priorities

CER

Turnover

£m

% Change20082009

££m

Free Cash Flow

EPS

Results beforemajor restructuring

2009 performance summary

28,368 24,352 3 16

121.2p 104.7p 2 16

5,254 4,679 12

Commitment to grow dividend

2005 2006 2007 2008 2009

penc

e

Emerging Markets

VaccinesPharma

Walvax

Consumer

AZ Tika

Dr Reddy’s (ex-India); Laboratoire Pharmaceutique Algérien (LPA Algeria); Walvax (Priorix in China); Neptunus (flu in China); Intercell (needle-free vaccine technology); AZ Tika (Alvedon); Uni-President (Lucozade in China); Novamin (specialty oral care technology)

NearEast

Pakistan EM/AP

14 deals completed across the business in 2009

Algeria

Investments to grow and diversify GSK’s business

0%

10%

20%

30%

40%

2007 2008 2009

Return to sales growth…with a more diversified portfolio

Proportion of sales from ‘white pill/western markets’reduced 40% to <30%

2008 20092007

PandemrixHiberix

US US

Sales from 2007-09 launches; CER growth rates

Pipeline delivers: increasing new product contribution

Improving returns in pharmaceutical R&D

Shift R&D spend from early to late1

Increase Discovery2

externalisationGrow biopharm

pipeline

More rigorous focus on potential differentiation prior to

commit to full development

Drive efficiencies throughout R&D

Do more with the same or less cost

40%

50%

60%

2002 2009

% R

&D

late

-sta

ge sp

end

0

5

10

15

20

2002 2009

Num

ber o

f bio

phar

m p

roje

cts

0

10

20

30

40

50

60

70

80

2002 2009Num

ber

of D

isco

very

pro

ject

s or

igin

atin

g fr

omex

tern

al s

ourc

es

1. Early = pre-Commit to Medicines Development (C2MD); Late = post-C2MD2. Discovery = Start of Chemistry to C2MD

1. Early = pre-Commit to Medicines Development (C2MD); Late = post-C2MD2. Discovery = Start of Chemistry to C2MD