AstraZeneca PLC · LSE:AZN
AstraZeneca — FY2010 Earnings Presentation
24 slides from AstraZeneca's earnings presentation, 2011
Slide 1: Full Year Results 2010
Full Year Results 2010 Cautionary statement regarding forward-looking statements In order, among other things, to utilise the „safe harbour‟ provisions of the US Private Securities Litigation Reform Act 1995, we are providing the following cautionary statement: This presentation contains certain for
Slide 2: Our vision
Full Year Results 2010 David Brennan, CEO Our vision AstraZeneca is Focused Integrated Innovation-driven Global OUR VALUES 4 AstraZeneca Full Year Results 2010 2
Slide 3: Strategic priorities and Key Developments 2010
Strategic priorities Making the most meaningful difference to patient health through great medicines Pipeline Business Business Culture & Growth Shape Behaviour Our values 5 Key Developments 2010 • Resilient revenue performance - Revenue $33.3 billion, unchanged at CER - Absorbed $1.6 billion revenu
Slide 4: Key Developments 2010
Key Developments 2010 • Resilient revenue performance • Shareholder returns • Legal Developments - US court upholds US Crestor patent - Progress in Seroquel product liability 7 Key Developments 2010 • Resilient revenue performance • Shareholder returns • Legal Developments • Research & Development -
Slide 5: Headline results FY 2010
Headline results FY 2010 2010 2009 Actual CER $m $m growth growth Revenue 33,269 32,804 +1% - Core Operating Profit 13,603 13,621 - - Core EPS $6.71 $6.32 +6% +5% Restructuring ($0.62) ($0.32) MedImmune/Merck amortisation ($0.29) ($0.27) Intangible Impairments ($0.29) ($0.13) Legal provisions ($0.31
Slide 6: Regional and Key Brand revenue FY 2010
Regional revenue performance FY 2010 2010 CER $m growth Global Revenue 33,269 - US 13,727 -7% Western Europe 9,168 +2% Established ROW 5,176 +7% Emerging Markets 5,198 +16% 11 Key Brand revenue summary FY 2010 2010 CER $m growth Crestor 5,691 +24% Seroquel 5,302 +9% Nexium 4,969 - Symbicort 2,746 +2
Slide 7: Crestor and Seroquel
Crestor FY10 Sales: $5,691m +24% EM ROW • Crestor US TRx + 12% $608m +26% 5,000 • Statin market growth +3% EST ROW • New indications based on JUPITER support growth $1,332m +25% 4,000 • Strong brand position for patients at elevated CV risk W. EUR 3,000 $1,111m +20% 2,000 US 1,000 $2,640m +26% 0 FY0
Slide 8: Nexium and Symbicort
Nexium FY10 Sales: $4,969m, unchgd EM ROW $619m +18% US EST ROW • Retail volume -5% $453m +4% • US PPI market -0.5% W. EUR • Nexium market share steady (-0.9 pts in 2010) $1,202m +2% • Cost effective promotion • No direct detailing support • Effective use of new channels US • Digital $2,695m -5% • C
Slide 9: Arimidex and Brilique/Brilinta
Arimidex FY10 Sales: $1,512m -22% • US generics approvals in June 2010 • Exclusivity in major European markets expires in Feb 2011 EM ROW $151m -6% EST ROW $287m +2% W. EUR $580m -4% US $494m -44% FY09 FY10 US W EUR EST ROW EM ROW 17 Brilique/Brilinta • Approved in 30 countries - EU, Iceland, Norway
Slide 10: The ACS opportunity and 2011 commercial rollout
The ACS opportunity * Note BRILINTA is currently approved in the EU, Iceland, Norway & Brazil 19 Brilique/Brilinta: 2011 Commercial rollout • AstraZeneca have submitted a response to the FDA‟s CRL and await confirmation of timing of the FDA review • Launched in UK, Germany and Denmark in January • M
Slide 11: R&D Update
R&D Update Martin Mackay, President Research & Development Agenda R&D Strategy & Transformation Portfolio Performance 2010 Key Late Stage Projects 22 AstraZeneca Full Year Results 2010 11
Slide 12: Addressing the R&D productivity challenge
How are we addressing the R&D productivity challenge? Leadership and operating model Attrition analysis and portfolio review Capability build and external science Organisational footprint 23 Leadership Susan Galbraith Steve Yang Oncology iMed Asia/Emerging from BMS Markets Research from Pfizer Peter
Slide 13: One R&D organisation and portfolio review criteria
One R&D organisation Discovery and early development Late-stage Development Innovative Medicines Global Medicines Units Development Internal and Market external opportunities Innovative Medicines Units R&D Enabling functions 25 Criteria used for portfolio review • Link between target / disease Right
Slide 14: Significant changes to the pipeline
Significant changes to the pipeline 120 110 103 100 98 95 14 92 90 23 11 24 17 Number of projects 80 71 70 10 9 61 10 60 34 25 50 20 31 32 25 5 40 6 18 30 13 44 20 41 34 34 10 23 17 0 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 Phase 1 Phase 2 Phase 3/Reg LCM 27 Investing in capabilities to drive prod
Slide 15: Portfolio highlights 2010 and Brilinta CRL status
Portfolio highlights 2010 Launched/Approved Submitted New Indications Phase 3 Starts Europe TC-5214 Europe Europe Japan Europe Fostamatinib Dapagliflozin Europe & USA Europe & USA Europe, USA & China USA Vandetanib (500) Europe & USA (PUB) China Japan Europe & USA 1st Line NSCLC Japan China & Europe
Slide 16: Fostamatinib and TC-5214
Fostamatinib: oral spleen tyrosine kinase (SYK) inhibitor FPI Sept 2010 NDA & MAA 2013 Entered Phase 3 MTX-IR, 12 month MTX combination, n~ 900 DMARD-IR, 12month Next generation oral RA therapy DMARD combination, n ~ 900 Phase 2b data demonstrated a aTNF-IR, 6 month MTX combination, n~ 450 posit
Slide 17: Zinforo and Dapagliflozin
Zinforo: next generation cephalosporin antibiotic Submitted in EU 1o Endpoint 10% NI Non-inferiority margin Response (% Difference) Population -10 0 10 20 Demonstrated good efficacy in Modified intent-to-treat Phase 3 cSSTI and CAP CANVAS 1 Clinically evaluable cSSTI Differentiating attributes M
Slide 18: Summary
Summary Transformation of R&D Portfolio progression with some disappointments We have established a strong platform for future success 35 Full Year Results 2010 Simon Lowth, Chief Financial Officer AstraZeneca Full Year Results 2010 18
Slide 19: Headline results 4Q 2010 and core margin
Headline results 4Q 2010 2010 2009 Actual CER $m $m growth growth Revenue 8,617 8,945 -4% -3% Core Operating Profit 2,865 3,044 -6% -2% Core EPS $1.39 $1.42 -2% 1% Restructuring ($0.22) ($0.14) MedImmune/Merck amortisation ($0.07) ($0.07) Intangible Impairments ($0.29) ($0.10) Legal provisions ($0.0
Slide 20: Restructuring Programme 2007-2009 and 2010-2014
Restructuring Programme: Phase 1 complete 2007-2009 Headcount Impact Programme Cost 2007-2009 2007-2009 $m Global Supply Chain 4,250 (1,003) SG&A 6,750 (1,216) Annual benefits R&D 1,600 (288) 2010 $m Total 12,600 (2,506) 2,400 39 Restructuring Programme 2010-2014 Headcount Impact Programme Cost 2010
Slide 21: Net headcount developments and cash generation
Net headcount developments: 2006-2010 Global Emerging Supply Chain SG&A R&D AstraTech Biologics Markets 0 (2,000) -6,400 (4,000) (6,000) Wave 1 12,600 (8,000) (10,000) (12,000) (14,000) Wave 2 2,600 (16,000) 2006-2010 headcount movements are shown on a Full Time Equivalent basis and include AZ emplo
Slide 22: 2010 Use of Cash and cash generation
2010 Use of Cash 37% reinvestment * R&D includes internal R&D expenditures, net of tax and depreciation/amortisation and externalisation. Source: AZ annual reports 43 Cash generation: 2010 2010 2009 $m $m Closing net cash/(debt) 3,653 535 Gross debt (9,222) (11,063) Cash/Cash equivalents and STIs 12
Slide 23: Shareholder returns and planning assumptions
Shareholder returns • Progressive dividend policy - Aim to maintain or grow • Full year dividend increased by 11 percent to $2.55 • Share repurchases - 2010: $2.1 billion net share repurchases - 2011: Target net $4 billion 45 Key planning assumptions remain robust • Pharma sector can grow at least i
Slide 24: Planning Assumptions 2010-14 and Guidance for 2011
Planning Assumptions 2010-14: Update • Grow the Business - Revenue in the range of $28bn to $34bn per annum over the period - Risk adjusted revenue contribution from the pipeline lowered to the range of $3bn to $5bn - Sustain double digit growth in Emerging Markets - Revenue around the middle of the