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Abbas Hussain

President, Emerging Markets

13th May 2010

an o mer caMerrill Lynch

HealthCareConference

1

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GSK 1Q 2010 Turnover 7.4bn +13%(6.6bn +4% excluding pandemic sales)

GSK 1Q 2010+9%

+4%

+13% Turnover

+16% EPS rowth

Rest ofPharma0.2bn

Consumer1.2bn

+45% -1%

USPharma1.9bn

Japan Pharma0.89bn

Euro e

EmergingMarkets Pharma

0.87bn

Pharma1.9bn

+(HIV)

0.4bn-7%

2CER growth rates; Business performanceBeginning in 2010, Stiefel sales allocated to regions and all ViiV Healthcare sales shown separately .

+16%

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GSK Emerging Markets business

>12,000 sales reps85 countries

CIS

India

China

MENA

Mexico

Latin

America

SSA

*

3

= 12% of GSK Group TurnoverSource: GSK 1Q10 reported turnover including pandemic. Excluding pandemic, turnover was 713m (+17%)

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GSKs pharma presence in Emerging Markets

CISEastern &Central Euro e

India

China

MENA

Mexico

Latin

America

SSA Asia Pac(excl Japan, Aus, NZ)

4

, , ,

= 1.3bn (+40%) 1Q10Source: GSK 1Q10 reported turnover including pandemic. Excluding pandemic, turnover was 1.1bn (+19%)

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GSKs total presence in Emerging Markets

+

0.4bn 1Q10+13%

1.3bn 1Q10+40%

.1Q10

524% of GSK Group Turnover

Source: GSK 1Q10 reported turnover including pandemic. Excluding pandemic, total turnover was 1.6m (+17%)

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GSK Emerging Markets 2009 turnover

2009 3.0bn (+20%)

By region Top markets

(+

24%)

450

500

SSA

16%)

%)

0%)

)

204m

461m983m 300

350

400China*

MENA

(+ (+

(+1

22%)

(+28%)

+56%)(+6

%

(+36%)

m

231m 200

250

CIS((

271m214m

50

100

South

China*

Turkey

India

Brazil

Mexico

SaudiArabia

Russia

Egypt

Pakistan

Latina

6*China includes HKSource: Turnover and growth is GSK 2009 as reported. Growth rates are CER. Rankings are IMS MAT Dec 09

GSK ranking #11 5 3 13 7 1 16 1 1

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History of EM sales growth

GSK is catching up with EM market growth25%

20%

20%

15%

10%

5%EM (IMS data)

GSK (IMS data)

0%

2003 2004 2005 2006 2007 2008 2009

repor e

7Source: IMS data (Dec MAT) and GSK reported.Note: IMS audits currently do not capture all activities e.g. vaccines, and therefore undervalues sales in EM, particularly for GSK.

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Emerging market characteristics

Large markets Pay out of pocket

Need for reater access Smaller roducts

Fast growing

programmes

8

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Growth in Pharmerging Markets

IMS Tier 1, 2, 3 Pharmerging MarketsIncremental Growth

2009-2013

Growth

+$5-15bn

Growth

+$1-5bnGDPPP

P

India

Turkey Pakistan Egypt

VenezuelaUkraine S. Africa

Growth

ThailandArgentinaMexico

9Vietnam Indonesia

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Need for greater access

Brazil India S. Africa

180m 1.2bn 49mTotal population

Egypt

82m

33% 1% 4% 2%

A

42% 45% 51% 38%C+

-

26% 51% 32% 58%

E

10

A/B: No problem paying for any prescription medicine can afford premium priced branded products (A: Senior managers in business or commerce, top civil servants; B Middle managers in large organisations, owners ofsmall businesses)C+: Have some problems paying for Rx medicines can usually afford some moderately priced brands or generics but run into cost difficulties if repeat medication is prescribed (Junior managers, owners of smallestablishments and all others in non-manual positions)C-: Have major problems paying for prescription medicines can only afford the least expensive medications and only shorter courses of treatment (Skilled manual workers, manual workers with responsibility for others)D/E: Cannot afford prescription medicines have major difficulties to afford medication of any kind (D: Semi-skilled and unskilled manual workers, apprentices and trainees; E: Unemployed, casual workers without regularincome, those dependent on the state)

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GSKs contribution to EM healthcare

Pre ClinicalPre Clinical ClinicalClinical NewNew PostPost HealthHealthR&DR&D R&DR&D

us nessModelsus nessModels

LaunchLaunch SystemsSystems

R&D PPPs R&D PPPs Tiered ricin Continuin 20% reinvestment

Knowledge Pool Open lab

Malaria screen

Knowledge Pool EM-focused R&D

Malaria vaccine

Price caps MIC Pricing

Branded enerics

MedicalEducation

Voluntary

LymphaticFilariasiselimination

TB, malaria

HIV

ViiV Healthcare

Brazil JV

African malariaPartnership

PHASE1

Commitment

and PAFC

Humanitarianrelief

111 PHASE = Personal Hygiene And Sanitation Education

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LDCs: Price reductions end Q1 2009 lead to morepatients affording IP products by end 2009

Francophone Sub Saharan Africa

Sales Volume

Average Price

Q1 Q2 Q3 Q4

12Average of Prices Vs Sum of sales volume of AVANDIA,FLIXONASE, FLIXOTIDE & SERETIDE across 4 quarters

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Avamys in Mexico:Optimal pricing delivers rapid uptake

IMSMonitor:Inhaled NasalSteroids% Weekl Market Share Units

45%

50%

30%31%

34%35%

40%

20%

27%27%

25%

30%

8% 8%

13%

10%

15%

0% 0% 0%

5% 5%

3%

0%

5%

13

w1 w2 w3 w4 w5 w6 w7 w8 w9 w10 w11 w12 w13 w14 w15 w16

AVAMYS2A(GSK) RINELON(ESX) UNICLAR(SMX) FLIXONASEAQUA(GSK) NASACORTAQ(S.A) RHINOCORT+AQUA(AZN)

Avamys launched Feb 2010

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Emerging Markets strategy

Scale up our

Build and capturethe Vaccines market

669m +30%

ass c ran sbusiness

1.3m +18%Pandemic

Drive ourInnovative brands

14Source: GSK 09 reported sales; CER growth rates

967m +17%

14

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Bolt-on acquisitions and partnerships

13 deals completed across the business will

Classic business

con r u e o e merg ng ar e s us ness

a s an

East

Algeria

Vaccines businessInnovative business Consumer

Walvax

15Dr Reddys (ex-India); Laboratoire Pharmaceutique Algrien (LPA Algeria); Walvax (Priorix in China); Neptunus (flu in China); Intercell (needle-free vaccine technology).Note: Lucozade China with Uni-President China Holdings, and Dong-A Pharmaceuticals are outside of GSKs Emerging Markets business.

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Scale up our Classic brands business

Our own portfolio Bolt-on acquisitions Portfolio deals

Egypt Oct 08 June 092007+12%

2009+20% Pakistan Dec 08

Near East July 09Licensing - July 08

45m sales 2009

EM/AP

>350 dossiers to befiled by end 2010

2007+5%

2009+11%

46m sales 2009

Mar 09Local Acquisitions

July 09

Total ClassicBusiness Growth

Brazil

16

2007

+5%

2009

+18% Algeria

Dec 09 Mexico

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Ventolin HFA in China:Increasing patient access drives expansion

Chinese government prioritized EDL as a key driver of new healthcare reform in April 2009

Salbutamol has been listed in NEDL since Oct 2009

Plans to expand Ventolin HFA penetration to low tier market

17

Reach 234 cities and over 10,000 hospitals vs current 100 cities & 6,473 hospitals

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Strategic Collaboration with Aspen

GSK acquired 19% stake (market value of 0.6bn)Establishes GSK Aspen Healthcare for Africa brand

r ngs a or a e me c nes o su - a aran r ca

Leverages GSKs infrastructure in SSA and Aspens local leadership

South AfricaDisposal of manufacturing site and tail brands simplify GSKsoperating model

Share of after tax rofits of associates and oint ventures 21m in 1Q10

18Transaction closed 30 November 2009; Market value as at 31 March 2010.

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Drive our Innovative business

Core portfolio2009 Turnover

New portfolio Future portfolio

New products:

276m (+21%) VotrientArzerradenosumabBenlysta

115m (+7%) Horizondarapladib

m Targeted R&Ddeveloping EM-

specific portfolio

51m (+11%)

y er or gas r cand H&N cancersLiver cancerMarket-specific

19

s

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Stiefel opportunity is greatest in EM

~80% of the EM derms market

110

sales by market

80

90

100 Stiefel Brands ($135m)

GSK Brands ($238m)

50

60

70

20

30

40

0

10

dia

azil

ico

tan

key

ela

udi

EM

20GSK revenues are for Calendar Year 2008, while Stiefelrevenues are for Financial Year 2008.

In Br

Mex

Pakis

Tur

Venezu

S

O

ther

Source: IMS

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Build and capture the Vaccines market

Significant market

market and is growing fastergrow po en a

Growing government attentionto ublic health a enda

Total EM vaccines market 20092.0bn (+22%)

Large birth cohorts forpaediatric vaccines

669m (+30%)GSK vaccines

growth potential

New geographies

Broad portfolio, well-positioned toprovide for spectrum of needs

21

Local partnership is critical

Source: GSK estimates for market; GSK reported sales. (2009 EM vaccines data)

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GSK has the broadest vaccine portfolio in EM

GSK Merck Sanofi Pfizer Novartis

DTPa combos

MMR / Varicella Hepatitis A Rotavirus Meningococcal dPneumococcal Influenza HPV Malaria d

22Dengue d d

= available in EM; d = Ph III / registration in EM

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Strong launches are building the vaccinesbusiness

Launched mid 2009 and already 26m in 1Q10

Mexico 3 year contract

Turkey 70% market shareHong Kong 70% market share

AMC 10 year contract for GAVI countries ($1.3bn)

23

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GSK Emerging Markets in 2015

IMS projects EM market growth Vaccines

of 13-15%1

Our objective is to grow faster Innovative

Classic

an e mar e

2009

Innovative

24

1 Source: IMS Prognosis through 2013, redefined for GSK EM region.2 including organic growth and bolt-on acquisition strategy.

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Operating profit margin

GSKs reported regional margins

2009 Operating

Profit Margin1(%)

US 66.2

exclude R&D and legal expenseswhich are heavily weightedtowards Europe and US

Europe 58.7 EM has been in investment modeEM margin expected to remain in

EM 35.3

AP/J 52.7

m - s range

251 Operating margin excluding R&D, legal and other unallocated pharmaceuticals costs, as well as profit from asset sales, andincluding pandemic.

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