Slide 1: H1 2019 results
H1 2019 results Conference call and webcast for investors and analysts 25 July 2019
Slide 2: Forward-looking statements
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 document contains certain forward-looking statements with respect to the operations, pe
Slide 3: Presenters
Presenters Pascal Soriot Dave Fredrickson Ruud Dobber Executive Director and Executive Vice President, Executive Vice President, Chief Executive Officer Oncology Business Unit BioPharmaceuticals Business Unit Marc Dunoyer José Baselga Mene Pangalos Executive Director and Executive Vice President, Ex
Slide 4: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 4
Slide 5: H1 2019: continued strong sales growth, investing in sustainable growth
H1 2019: continued strong sales growth Investing in sustainable growth Business and financials Product sales up by 17%; 19% in the second quarter • Strong performance of new medicines1 (+77%); $2.0bn incremental sales vs. H1 2018 • Oncology (+58%), New CVRM2 (+16%) and Respiratory (+10%) • Emerging
Slide 6: Q2 2019: continued pipeline progress
Q2 2019: continued pipeline progress Highlights from the late-stage development Pipeline news Oncology • Imfinzi SCLC1 met Phase III primary endpoint Orphan Drug Designation (US) • Lynparza ovarian cancer (1st line, BRCAm2) regulatory approval (EU, JP) pancreatic cancer (BRCAm) regulatory submission
Slide 7: H1 2019: continued strong sales growth
H1 2019: continued strong sales growth 17% sales growth; new medicines +77% Strong sales New medicines remain growth continued the key sales drivers $m 19% H1 2019: 800 700 14% +$2.0bn 600 Product sales growth, percent 9% 8% incremental sales of new medicines compared to H1 2018 500 Diabetes Allianc
Slide 8: H1 2019: sales growth across all main therapy areas
H1 2019: sales growth across all main therapy areas Growth driven by new medicines and legacy medicines in EM Q2 2019 % product H1 2019 % product % change % change $m sales $m sales Product sales 5,718 19 100 11,183 17 100 Oncology 2,167 57 38 4,059 58 36 New CVRM 1,061 13 19 2,094 16 19 Respiratory
Slide 9: Leading in sustainability
Leading in sustainability AstraZeneca is the first pharmaceutical company to join the global EV100 initiative • Access to healthcare Healthy Heart Africa programme recently launched in Ghana • Environmental protection Shifting to electric Commitment to EV100 for company cars vehicles will save the s
Slide 10: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 10
Slide 11: Oncology: Establishing new standards of care
Oncology Establishing new standards of care Oncology up by New medicines Lynparza, Tagrisso, $m 58% in H1 2019 Imfinzi and Calquence added $1.5bn 2,250 2,000 • Tagrisso: continued global expansion into 1st-line use 1,750 1,500 • Imfinzi: US growth moderating; ex-US growth continued up 1,250 1,000 •
Slide 12: Lung cancer: Tagrisso
Lung cancer: Tagrisso 1st-line standard of care in US and JP; launches elsewhere continued Strong performance in all Worldwide approvals: 84 countries (2nd- $m markets: +92% in H1 2019 line use) and 74 countries (1st-line use) 900 800 • US +64% (40% of total) • Europe +64% Return to sequential growt
Slide 13: Lung cancer: Imfinzi
Lung cancer: Imfinzi Opportunity outside the US continues to be realised US peak sales are PACIFIC (unresectable, Stage III US patient infusions $m expected at >$1bn NSCLC1) becoming new SoC2 continued to increase 350 1,000 • Worldwide approvals: 49 countries 900 300 (and 10 countries in bladder can
Slide 14: Lynparza
Lynparza Leading PARP inhibitor treating more patients Eight quarters of strong Leading PARP inhibitor approved in 64 countries $m growth: +100% in H1 2019 in ovarian and in 40 countries in breast cancer 300 • US +76% (50% of total) • Europe +61% 250 Approval in 1st-line BRCAm ovarian Increased adop
Slide 15: BioPharmaceuticals: Continued growth across all major medicines
BioPharmaceuticals Continued growth across all major medicines BioPharmaceuticals Solid franchises $m up by 13% in H1 2019 with strong growth 2,500 • Farxiga: solid global position in growing class with unique CV outcomes data. Potential to expand beyond diabetes 2,000 • Brilinta: continued global g
Slide 16: BioPharmaceuticals: New CVRM
BioPharmaceuticals: New CVRM Blockbusters Farxiga and Brilinta continued global growth Steady Diabetes growth driven by Farxiga Continued growth $m SGLT21 the fastest-growing class of antidiabetics $m in Brilinta sales 750 1,500 • Farxiga +19% • Brilinta +26%: growth across all major +6% +11% US (+2
Slide 17: BioPharmaceuticals: Respiratory
BioPharmaceuticals: Respiratory Sales growth 10% and steady with Fasenra and Pulmicort leading Respiratory delivered Performance differentiated by Fasenra approved $m strong performance portfolio mix across geographies now in 47 countries +7% +10% 1,250 -13% 2,500 -3% • US +12% • US $208m Symbicort
Slide 18: Emerging markets: Strong performance across many markets
Emerging markets 2018 year-end webcast on China and Emerging markets Strong performance across many markets Performance boost by China growing ahead of recent trends Sales continued to grow ahead of the long-term Ex-China growth +10% with improvement since Q4 2018 ambition of mid to high single-digi
Slide 19: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 19
Slide 20: Reported profit and loss
Reported profit and loss H1 2019 % total Q2 2019 % total % change % change $m revenue $m revenue Product sales 11,183 17 99 5,718 19 98 Collaboration revenue 131 (57) 1 105 (12) 2 Total revenue 11,314 14 100 5,823 18 100 Gross margin 80.4% 1.8 pp2 81.4% 1.5 pp Operating expenses1 8,238 10 73 4,380 1
Slide 21: Core profit and loss
Core profit and loss H1 2019 % total Q2 2019 % total % change % change $m revenue $m revenue Product sales 11,183 17 99 5,718 19 98 Collaboration revenue 131 (57) 1 105 (12) 2 Total revenue 11,314 14 100 5,823 18 100 Gross margin 81.3% 1.3 pp 82.1% 0.8 pp Operating expenses1 6,922 5 61 3,553 5 61 -
Slide 22: Cash flow: Improvement in operating cash flow
Cash flow Improvement in operating cash flow Net debt Cash-flow $bn unchanged highlights • Net cash from operating activities $491m in H1 2019 versus -$75m in H1 2018 primarily due to 0.7 13.7 13.0 3.5 2.4 0.2 13.1 improvement in working capital and short-term provisions 1.7 offset by higher taxes p
Slide 23: Finance priorities
Finance priorities H1 results supportive Deleveraging / dividend growth Sales growth • As cash flow improves, deleveraging and progressive dividend policy +17% growth in product sales in H1 2019 Cash-flow growth Operating leverage • H1 2019: improvement in cash flow • 44% growth in core operating pr
Slide 24: 2019 guidance updated and confirms the growth outlook
2019 guidance updated and confirms the growth outlook Product sales Core EPS Now a low double-digit percentage increase1 $3.50 to $3.70 1. Previously, guidance for product sales was for a high single-digit percentage increase. Guidance at CER. 24
Slide 25: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 25
Slide 26: Oncology: A very successful ASCO 2019 annual meeting
Oncology A very successful ASCO 2019 annual meeting Metastatic pancreatic cancer (gBRCAm) 3rd-line ovarian cancer (BRCAm) Unresectable, Stage III NSCLC First positive Phase III Superior efficacy Three-year OS3 defines trial for a PARP inhibitor vs. chemotherapy new standard of care 2 The OS rate was
Slide 27: Oncology: Solid pipeline progress; preparing for a very busy H2 2019
Oncology Solid pipeline progress; preparing for a very busy H2 2019 Regulatory CASPIAN trial News flow milestones Imfinzi in SCLC in H2 2019 • Imfinzi • Tagrisso SCLC: met Phase III primary endpoint NSCLC (1L, EGFRm1) (final OS) • Lynparza Ovarian cancer (1L, BRCAm): regulatory • Imfinzi + treme app
Slide 28: Haematology: 'what's next?'
Haematology: ‘what’s next?’ Building on Calquence foundation, as CLL emerges Calquence in CLL • EHA presentation and ‘What’s front-line high-level results next?’ • ASCEND ASCEND hazard ratio 0.31 • AZD5991 (MCL1 inhibitor): novel Met Phase III primary endpoint in macrocyclic chemistry relapsed/refra
Slide 29: New CVRM: Continued progress across the board
New CVRM Continued progress across the board; Farxiga expanding patient benefit Regulatory and Farxiga other milestones Additional renal data from DECLARE Phase III trial presented at ADA 2019 • Forxiga Kaplan-Meier plots for the renal- • 47% reduction in the relative risk of T2D CVOT: positive opin
Slide 30: Respiratory: Progress across portfolio
Respiratory Progress across portfolio; expanding Fasenra lifecycle programme Regulatory and Fasenra received a positive EU CHMP opinion for both self-administration other milestones and the new Fasenra Pen, a pre-filled, single-use auto-injector • Bevespi Aerosphere COPD: regulatory approval (JP) IL
Slide 31: Late-stage pipeline events in the 2019, 2020 timeframe
Late-stage pipeline events in the 2019, 2020 timeframe Busy news flow continues; underpinning consistent sales growth H2 2019 H1 2020 H2 2020 Regulatory decision Tagrisso - NSCLC (1L, EGFRm) (CN) Lynparza - Imfinzi - unresectable, Stage III NSCLC (PACIFIC) (CN) - breast cancer (BRCAm) (CN) Lynparza
Slide 32: 'What's next': aiming for sustainable sales growth
‘What’s next’: aiming for sustainable sales growth Rich mid-stage pipeline; selected new molecular entities Oncology New CVRM Respiratory capivasertib (AKT1 inhibitor) breast, prostate cancers Phase III start in H1 2019 ✓ trastuzumab deruxtecan (HER2 ADC) - breast, gastric, other - Phase III/II Phas
Slide 33: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 33
Slide 34: H1 2019: continued strong sales growth, investing in sustainable growth
H1 2019: continued strong sales growth Investing in sustainable growth Business and financials Product sales up by 17%; 19% in the second quarter • Strong performance of new medicines1 (+77%); $2.0bn incremental sales vs. H1 2018 • Oncology (+58%), New CVRM2 (+16%) and Respiratory (+10%) • Emerging
Slide 35: Slide 35
Slide 36: H1 2019: continued strong sales growth, investing in sustainable growth
H1 2019: continued strong sales growth Investing in sustainable growth Business and financials Product sales up by 17%; 19% in the second quarter • Strong performance of new medicines1 (+77%); $2.0bn incremental sales vs. H1 2018 • Oncology (+58%), New CVRM2 (+16%) and Respiratory (+10%) • Emerging
Slide 37: Use of AstraZeneca conference call, webcast and presentation slides
Use of AstraZeneca conference call, webcast and presentation slides The AstraZeneca webcast, conference call and presentation slides (together the ‘AstraZeneca Materials’) are for your personal, non-commercial use only. You may not copy, reproduce, republish, post, broadcast, transmit, make availabl