Chief Executive Officer's review
Three and a half years ago, we set out to fundamentally change GSK to create a more balanced business capable of addressing the market challenges we face, delivering sustainable financial performance and providing new value to patients and consumers.
Our record in 2011 demonstrates that we are succeeding. During the year we delivered underlying sales growth of 4%, strong cash generation, significant R&D progress and we were able to increase shareholder returns through ordinary dividend growth of 8%, plus a supplemental dividend of 5p and 2.2 billion of share buy backs. In total, we distributed 5.6 billion in cash to shareholders in 2011 - an increase of 75% versus 2010.
As we go into 2012, we are mindful of the potential pressures we face given the current global political and economic environment. However we continue to expect to drive further shareholder returns as we seek to grow sales across our broadly based business and improve operational leverage and financial efficiency to deliver strong cash generation. We will also continue to invest appropriately in the business to generate sustainable and profitable sales growth, using strict returns criteria.
We expect further delivery from our R&D organisation in 2012. I am pleased to confirm that of the 15 late-stage drugs and vaccines we highlighted last year, we have received some or all of the data on nine of them. Most importantly, one has already filed and we have three more ready to file. In addition, our quadrivalent flu vaccine, which was not included in the 15, has progressed very quickly and will also file very shortly. We expect Phase III development programmes to complete for a further six assets and indications this year. All this comes with increasing signs that we can replenish our pipeline on an ongoing basis.
