20% reinvestment Q&A 23 May 2011

GSK forms partnerships with leading NGOs to address the shortage of frontline healthcare workers in Least Developed Countries (LDCs)
Key messages GSK has formed a new partnership with three leading NGOs to improve health outcomes by supporting frontline healthcare workers who operate in the worlds poorest countries AMREF, CARE and Save the Children have been selected for their local expertise and ability to support frontline healthcare workers in LDCs This partnership builds on GSKs commitment to reinvest 20% of profits made in the LDCs back into projects that strengthen the healthcare infrastructure in these countries Each NGO will be responsible for establishing a regional Health Infrastructure Partnership (HIP) through which the projects will be selected and funding channelled, with the aim to implement a project in every profit-making LDC by 2012 Reinvesting a proportion of profits made in the LDCs provides a sustainable model and gives communities the assurance of a long-term funding commitment

Reactive Q&A 1. What is the partnership that you are announcing today? GSK has formed a new partnership with three leading NGOs with the aim to improve health outcomes in the worlds poorest countries by supporting frontline healthcare workers who operate in these countries. GSK will partner with AMREF in East and Southern Africa, CARE International in Asia Pacific and Save the Children in West Africa. These respected NGOs have been selected for their local expertise and ability to support frontline healthcare workers across the LDCs. This partnership builds on GSKs commitment in March 2009 to reinvest 20% of profits made in the LDCs back into projects to improve healthcare infrastructure. By partnering with respected NGOs, GSK can achieve more than it could on its own, to deliver solutions that can make a difference on the ground in the worlds poorest countries. 2. What is the aim of the partnership? There is a chronic shortage of healthcare workers worldwide, which is most severe in the poorest countries where they are most needed. The partnership aims to strengthen the healthcare workforce in LDCs, with a focus on frontline healthcare workers in the most rural and marginalised communities where the shortage is particularly acute. GSK and its partners recognise the crucial link between investing in the skills of community healthcare workers and improved health outcomes in LDCs. Through programmatic, learning and advocacy efforts, the partnership hopes to galvanise further national and international action to deliver the greatest impact.
Page 1 of 8

20% reinvestment Q&A 23 May 2011 It aims to maximise its reach, profile and advocacy opportunities, for example by leveraging existing relationships with peer NGOs and global alliances such as the Global Health Workforce Alliance (GWHA) and the Health Workforce Advocacy Initiative. Through shared learning, it also hopes to influence policy at local, national and international levels to encourage replication and ensure sustainable impact. 3. What outcome are you hoping to achieve? How will you measure success? The partners are working together to agree a common framework by which to assess and measure success for the partnership.

4. How will the partnerships work? GSK has committed to reinvesting 20% of profits made from its Pharmaceutical and Consumer Healthcare businesses in the LDCs back into projects to improve healthcare infrastructure in those countries. Investment will be targeted through appropriate interventions led by the NGO partners at the community-level, addressing health workforce issues including training, and supervision and support. Each agency is responsible for establishing a regional Health Infrastructure Partnership (HIP), including representatives from groups including local healthcare organisations, government officials and the WHO, through which the funding will be channelled and projects selected. 5. What is innovative or different about this approach? Sustainable: Reinvesting a proportion of profits made in the LDCs provides a sustainable model to grow our business and gives communities the assurance of a long-term funding commitment, not just for one year, but for years to come. Scalable: The projects can be scaled up according to the level of investment available. Addresses clear healthcare needs in these countries: the shortage of trained healthcare workers is particularly acute in rural and marginalised communities in LDCs. Engages external stakeholders in decision making: Each NGO will be responsible for establishing Health Infrastructure Partnerships through which the projects will be selected and funding channelled. These partnerships will include representatives from local healthcare organisations, government officials and the WHO. Replicable: The partnership aims to galvanise support to encourage both local and International oragnisations to make a similar commitment in LDCs. We hope to use our learning to influence policy at local, national and international levels to encourage replication and ensure sustainable impact. 6. Why is the partnership focusing on community healthcare workers?
Page 2 of 8

20% reinvestment Q&A 23 May 2011 Health workers are at the centre of any healthcare system. However there is a chronic shortage of trained healthcare workers which is particularly acute in rural and marginalised communities in LDCs. This shortage is recognized as one of the most fundamental constraints to achieving the Millennium Development Goals. We have chosen to focus on frontline healthcare workers as they can provide basic health and medical care to their own community. They can be trained and deployed relatively quickly, they understand the communitys health needs and they can provide basic healthcare and education in areas where there is often no access to formal healthcare, for example treating mothers and babies with malaria, helping tuberculosis (TB) patients to take their treatment correctly and educating communities on HIV prevention. 7. When do you expect projects to start? Projects are already underway in the Democratic Republic of Congo, Ethiopia and Rwanda. Funding for additional projects for 2011 has been authorised in Angola, Bangladesh, Cambodia, Nepal, Niger, Sierra Leone, Yemen and Zambia. The aim is that, by 2012, a project will be underway in every LDC where GSK makes a profit.

8. Why has GSK selected these partners? GSK wants to make a difference in all the countries that it operates in. AMREF, CARE International and Save the Children have been selected due to their expertise in accessing and supporting healthcare workers that operate in challenging rural and marginalised communities throughout the developing world. All partners bring unique perspectives and different experiences from the regions and countries where they operate. By working collectively, we can share ideas, learnings and best practice which we believe will create efficiencies and facilitate a much greater impact on increasing both the quantity and quality of healthcare workers in some of the worlds most challenging rural and marginalised communities. 9. How has GSK previously worked with these NGOs? GSK works in partnership with a number of NGOs to help improve health and education in under-served communities. We have previously partnered with Save the Children and AMREF on our PHASE (Personal Hygiene And Sanitation Education) programme a low-cost education programme helping to reduce diarrhoea-related disease by encouraging school children to wash their hands.
Page 3 of 8

20% reinvestment Q&A 23 May 2011 CARE International is a new partner for GSK, selected for their reach into Asia, their experience of working in this area, their reputation for working in partnership with business to deliver strong outcomes and for the different perspectives and experience that, as a new partner, CARE can bring. 10.How does the partnership aim to bring in more partners? No single organisation can produce a solution to make a meaningful difference to the health of the developing world. Responsibilities need to be shared across governments, multilateral organisations, the private sector, including the pharmaceutical industry, and society. Through programmatic, learning and advocacy efforts, our hope is to galvanise further national and international action to make the greatest impact. We also wish to collaborate closely with others who are seeking to address the global health worker crisis, such as the Global Health Worker Alliance (GHWA). 11.Which countries will be included in the partnership? GSK will partner with AMREF in East and Southern Africa, CARE International in Asia Pacific and Save the Children in West Africa. Through this partnership, we aim to make a difference in as many countries as possible, targeting our support where it will make the biggest difference and where the need is greatest, including fragile states, such as Democratic Republic of Congo, Somalia and Yemen. Below is the list of countries which qualify for reinvestment in 2011: West Africa Benin Burkina Faso Central African Republic Chad East and Southern Africa Angola Burundi Djibouti Lesotho Asia Pacific Afghanistan Bangladesh Cambodia Myanmar Latina America Haiti

Page 4 of 8

20% reinvestment Q&A 23 May 2011

Democratic Republic of Congo Guinea Mali Mauritania Niger Senegal Sierra Leone Sudan Togo Yemen

Madagascar Malawi Mozambique Rwanda Tanzania Uganda United Republic of Tanzania Zambia

Nepal

12. What about the very poor countries in Latin America? Why are they not covered by this partnership? This partnership is focused on reinvesting the profits made in LDCs back into those countries. Save the Children will be responsible for Haiti, the only LDC in the Latin America region. Due to the difficult conditions in Haiti, we are also focused on humanitarian relief. During 2010, we gave 250,000 to help the British Red Cross provide emergency safe water and sanitation facilities for thousands of people affected by the earthquake in Haiti. We also donated GSK medicines valued at $1.4 million though our non-profit partners. We also support a number of global and local programmes that seek to improve access to medicines and healthcare infrastructure through the Latina America region. Our programmes include strategic global initiatives, designed to tackle diseases of the developing world, such as Personal Hygiene and Sanitation Education (PHASE), a low-cost education programme helping to reduce diarrhoea-related disease by encouraging school children to wash their hands. PHASE currently operates in 16 countries, including Bolivia, Brazil, Mexico, Nicaragua, Peru, reaching more than one million children and their extended families. Additionally, we also support local programmes that are tailored to the specific needs and challenges of our many different markets

13.Exactly how much money will GSK be investing through the partnership? GSK currently makes some degree of profit in 30 of the 48 LDCs. The total amount for reinvestment in 2011 is approximately 2.5m. The amount available for investment in each country will be proportional to the amount of profit. As the profits vary from country to country, we have set a minimum investment of 10,000. In some countries, the investment will support existing initiatives, whilst countries with a higher funding level will generate new and innovative activities.
Page 5 of 8

20% reinvestment Q&A 23 May 2011 14.Why is GSK linking funding to investment? Reinvesting profits made in the LDCs provides a sustainable model to grow our business and gives communities the assurance of a long-term funding commitment, not just for one year, but for years to come.

15.What about LDCs where GSK doesnt make a profit? GSK currently operates in 37 of the 48 LDCs and makes a profit in 30. We are looking for opportunities to expand our presence into more countries in Africa, including fragile states, in partnership with NGOs and UN organisations. For example, we recently re-launched GSK in Angola and have established a reliable and sustainable supply chain to enable us to bring essential medicines to Somalia. In addition to the 20% reinvestment initiative, we support a number of other global and local programmes that seek to improve access to medicines and healthcare infrastructure in the developed and developing world. Our programmes include strategic global initiatives, designed to tackle diseases of the developing world, which include on lymphatic filariasis (LF) and malaria as well as diarrhoea-related disease in children. Additionally, we also support local programmes that are tailored to the specific needs and challenges of our many different markets. [see table 1] Our global community investment in 2010 was 222 million (147 from product donations). 16. How long is the partnership for?

This model provides for a sustainable and long term funding commitment. We have signed agreements with each of our partners for 5 years.

17. GSK announced that it would reinvest 20% of profits back into LDCs in March 2009. What have you been doing for the last two years? Since 2009, GSK has invested 20 per cent of the profits from sales of its pharmaceutical and consumer healthcare products in LDCs back into projects that strengthen the healthcare infrastructure in those countries. This has already generated some exciting projects, from providing motorcycle ambulances for pregnant women in Sudan, to expanding a business franchise model of nurse-run clinics to improve access to quality basic healthcare and essential medicines in Rwanda and a community-based health infrastructure and capacity building project in Ethiopia focussed on reducing maternal, neonatal and child mortality. [see table 1 below for full list of 20 per cent projects]. But we know we will be able to achieve more by partnering with world-class NGOs than we could on our own, to deliver solutions that make a meaningful difference to the health of the developing world.
Page 6 of 8

20% reinvestment Q&A 23 May 2011 18. Will you be investing in existing programmes or starting new?

The profits made, and therefore the amounts available for reinvestment, vary from country to country. In some countries, the investment will support existing initiatives, whilst countries with a higher funding level will generate new and innovative activities. 19.Why have you focused the 20% reinvestment initiative on LDCs? GSK is committed to playing its part in improving access to healthcare for people living in the poorest countries in the world which bear a disproportionately higher disease burden than the developed world and where the challenges are greatest. By reinvesting a proportion of profits made in the LDCs, we are providing a sustainable model to grow our business in these countries and give communities the assurance of a long-term funding commitment, not just for one year, but for years to come. 20.What are you doing to help the poorest people in LICs or MICs? We also recognise that challenges to accessing healthcare exist throughout the developing and developed world. In addition to the 20% reinvestment initiative, we support a number of other global and local programmes that seek to improve access to medicines and healthcare infrastructure in the developed and developing world. Our programmes include strategic global initiatives, designed to tackle diseases of the developing world, which include on lymphatic filariasis (LF) and malaria as well as diarrhoea-related disease in children. Additionally, we also support local programmes that are tailored to the specific needs and challenges of our many different markets. [see table 1] Our global community investment in 2010 was 222 million (147 from product donations). Table 1: full list of current 20 per cent projects Region/ Country Africa Ethiopia Programme scope Partner/ Programme Budget Federal Democratic Republic of Ethiopia, Ministry of Health Catholic Relief Services (CRS) HealthStore Foundation

Democratic Republic of Congo Rwanda

Community-based health infrastructure and capacity building support to reduce maternal, neonatal and child mortality Health infrastructure support to improve neonatal and child health Expanding a network of business format franchise nurse-run clinics to improve access to quality basic healthcare and essential medicines Motorcycle ambulances for pregnant

Sudan

Ministry of Health Sudan,

Page 7 of 8

20% reinvestment Q&A 23 May 2011 women (one-year programme to commence in 2010) Asia Myanmar Water sanitation programmes in the schools of suburban areas NGOs, UNFPA, WHO and community leaders

Cambodia

Cambodia

Primary Healthcare Infrastructure Project construction of health centre facilities Maternal and Child Survival RACHA Initiatives community based health infrastructure (clinical training centre for midwives)

Partenaires, Organisation de Solidarit Internationale Plan International

Page 8 of 8