Slide 1: AstraZeneca 2013 Full Year Results
AstraZeneca 2013 Full Year Results 1
Slide 2: Cautionary statement regarding forward-looking statements
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 forward-looking statements
Slide 3: Agenda
Agenda Pascal Soriot 2013: Gaining momentum Marc Dunoyer 2013 financial performance and 2014 guidance Briggs Morrison Pipeline review Pascal Soriot Closing remarks 3
Slide 4: 2013: Gaining momentum
2013: Gaining momentum Pascal Soriot Chief Executive Officer, AstraZeneca
Slide 5: 2013 was an important step on our journey
2013 was an important step on our journey Acknowledged leaders in our core TAs Return to Rebuild the growth pipeline 2013 2014 2015 2016 2017 2018 2019 2020 Beyond 2020 5
Slide 6: 2013 financial results in line with our expectations
2013 financial results in line with our expectations Revenue $25,711m -6% (CER) Core EPS $5.05 -23% (CER) Dividend per share $2.80 6
Slide 7: 2013 global revenues in line with our expectations
2013 global revenues in line with our expectations 2013 CER $m growth Global Revenue 25,711 -6% US 9,691 -9% Europe 6,658 -9% Emerging Markets 5,389 +8% Japan 2,485 +4% Other established ROW 1,488 -29% 7
Slide 8: Good progress in 2013 across our strategic priorities
Good progress in 2013 across our strategic priorities Achieve 1 Return 2 Be a great 3 scientific to growth place to work leadership 8
Slide 9: Late stage pipeline almost doubled and core TAs strengthened
Late stage pipeline almost doubled and core Achieve 1 scientific TAs strengthened leadership 6 additions to late stage pipeline 1 • Oncology: Olaparib, selumetinib, moxetumomab • RIA: Benralizumab, PT003 • CVMD: Epanova Strengthened oncology and other core TAs Achieve Achieve • Immunocore, Spirogen,
Slide 10: Good progress in 2013 across our strategic priorities
Good progress in 2013 across our strategic priorities Achieve 1 Return 2 Be a great 3 scientific to growth place to work leadership 10
Slide 11: Growth platform revenues up 10% to $12.5bn
Growth platform revenues up 10% to $12.5bn Return 2 to growth 2013 CER $m growth % Growth drivers 12,471 10 Brilinta 283 216 Diabetes 787 75 Respiratory 4,677 7 Emerging Markets 5,389 8 Japan 2,485 4 11
Slide 12: Brilinta: Good progress Europe, International
Brilinta: Good progress Europe, International Return 2 to growth $m 300 EM $30m • 2013 Brilinta revenues up 216% 250 EST ROW $17m to $283m 200 • Leadership position achieved in some EUR 150 $163m European markets 100 • Making progress but more work needed in the US 50 US $73m 0 FY 12 FY 13 Note: Gro
Slide 13: Brilinta: US performance
Brilinta: US performance Return 2 to growth TRx Share NBRx Share 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 1.8% 2.0% 1.0% 0.8% 0.0% Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Source: IMS Health. Copyright 2014. All rights reserved. NPA. Monthly data
Slide 14: Brilinta: Investing to realise significant potential
Brilinta: Investing to realise significant potential Return 2 to growth Large untapped volume with active clinical trials to access opportunity % OAP Volume Clinical trial • Today: Investments made in Brilinta 100 promotion, access, affordability, 90 23% 23% Stroke Stroke SOCRATES scientific leaders
Slide 15: Diabetes: building the franchise
Diabetes: building the franchise Return 2 to growth $m Symlin 800 $42m Forxiga 700 $10m • Revenues growing to $787m Bydureon 600 $151m • Diabetes acquisition closed 1 February 500 Byetta $206m 400 • Onglyza stable 300 • Exenatide share growing 200 Onglyza $378m • Farxiga US launch 7 February 100 0 F
Slide 16: Diabetes: Bydureon gaining TRx & NBRx share in US
Diabetes: BYDUREON gaining TRx Return 2 to growth & NBRx share in US TRx Share NBRx Share Exit 40% Share Q1 Q2 Q3 Q4 FY Gains 35% TRx +2.0 +0.8 +0.8 +0.9 +4.5 NBRx -0.9 -2.1 +1.9 +0.9 -0.2 30% Bydureon GLP-1 Share 24.6% 25% 20% 17.5% 15% 10% 5% 0% Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb
Slide 17: Respiratory: Symbicort up 10%
Respiratory: Symbicort up 10% Return 2 to growth $m 3,500 EM $325m +17% 3,000 EST ROW • 2013 Symbicort revenues up 10% $423m +7% to $3,483m 2,500 • Symbicort NBRx market share was up 2,000 EUR $1,502m +1% 7 points in US 1,500 • Share growth in Japan, China and many 1,000 International markets US 500
Slide 18: Respiratory: US Symbicort Net Sales +23%
Respiratory: US SYMBICORT Net Sales +23% Return 2 to growth 2012 Share Growth 2013 Share Growth 36% 35.3% 34% +6.81 32% 30% +1.53 28% 26.2% 26% +3.85 24% 22% +2.08 20% 18% Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 NBRx TRx Share Source: IMS Health. Copyright
Slide 19: Emerging Markets: Up 8%, driven by China
Emerging Markets: Up 8%, driven by China Return 2 to growth AZ significantly outgrows MNC and total market in China Growth Rate by Month in China Hospital Market Growth% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 A
Slide 20: Japan: strong in-market growth
Japan: strong in-market growth Return 2 to growth Good performance Growth in brand volume market share (points) • AZKK up from 12th to 9th in ranking +4.3 pts • Growth +4% CER +2.8 pts • In-market growth +11% +11.5 pts 2010 2011 2012 2013 Dec Source: IMS Health. Copyright 2014. All rights reserved.
Slide 21: AstraZeneca 2013 Full Year Results
AstraZeneca 2013 Full Year Results 21
Slide 22: 2013 financial performance and 2014 guidance
2013 financial performance and 2014 guidance Marc Dunoyer, Chief Financial Officer
Slide 23: Headline results 2013
Headline results 2013 Q4 Q4 CER FY FY CER 2013 2012 2013 2012 Revenue 6,844 7,282 -4% 25,711 27,973 -6% Core Operating Profit 1,983 2,795 -26% 8,390 11,159 -22% Core EPS $1.23 $1.71 -25% $5.05 $6.83 -23% 23
Slide 24: Core margin FY 2013
Core margin FY 2013 CER % Delta vs $m growth sales PY CER Revenue 25,711 -6% Core Gross Margin 21,078 -7% 82.0 -50bps Distribution (306) -3% 1.2 0bps Core R&D (4,269) +1% 16.6 -110bps Core SG&A (8,865) +7% 34.5 -430bps Core Other Income 752 -30% 2.9 -100bps Core Operating Profit 8,390 -22% 32.6 -690
Slide 25: Restructuring update
Restructuring update March 2013 Additional activities Feb 2014 COSTS $2.3bn +$0.9bn $3.2bn CASH $1.7bn +$0.7bn $2.4bn ANNUAL BENEFITS ON COMPLETION $0.8bn +$0.3bn $1.1bn (2016) HEADCOUNT (5,050) (550) (5,600) (Gross FTEs) 25
Slide 26: Cash generation: FY 2013
Cash generation: FY 2013 2013 2012 $m $m EBITDA 8,295 10,666 Movement in working capital 166 (706) Tax & interest paid (1,319) (2,588) Other non-cash movements 258 (424) Net cash from operating activities 7,400 6,948 26
Slide 27: Cash application: FY 2013
Cash application: FY 2013 2013 $m Net cash from operating activities 7,400 Net capex (673) Dividends/share issues (2,979) Acquisitions and business development (2,273) Other movements (11) Net cash flow after distributions 1,464 27
Slide 28: Business development aligned with priority TAs
Business development aligned with priority TAs Early Stage CV/Metabolism Oncology Respiratory/Inflammation/ Autoimmune NGM enteroendocrine cells AccurinTM Diabetes/Obesity mRNA mRNA nanomedicine 3 preclinical projects ACP-501 Reverse cholesterol RDX5791 transport AMP-514 End stage renal disease & ch
Slide 29: Cash distributions
Cash distributions Dividend • FY 2013 dividend $2.80 per share Share • FY 2013: No share repurchases repurchases • FY 2014: No repurchases planned currently 29
Slide 30: Guidance
Guidance 2014 Revenue (CER) Low-to-mid single digit decline 2014 Core EPS (CER) Percentage decline in the teens Dividend Progressive dividend policy reconfirmed Above guidance assumes US Nexium generic end of May 2014 2017 Revenue (CER) Broadly in line with 2013 30
Slide 31: AstraZeneca 2013 Full Year Results
AstraZeneca 2013 Full Year Results 31
Slide 32: Pipeline review
Pipeline review Briggs Morrison, Executive Vice President Global Medicines Development 32
Slide 33: Pipeline review
Pipeline review 2013 Significant phase III & pipeline progression 2014 Exciting assets underpinning scientific leadership 33
Slide 34: We anticipated 5-7 NME Phase 3 starts 2013-2014
We anticipated 5-7 NME Phase 3 starts 2013-2014 2013 2014 benralizumab AZD6765 ATM AVI asthma depression serious infections olaparib sifalimumab/MEDI-546 AZD4547 solid tumours systemic lupus erythematosus gastric cancer moxetumomab pasudotox mavrilimumab AZD5069 hairy cell leukaemia rheumatoid arthr
Slide 35: Continuous news flow in 2013 as anticipated
Continuous news flow in 2013 as anticipated Product Milestone fostamatinib – rheumatoid arthritis naloxegol – opioid-induced constipation Phase III data Phase III data (KODIAC-08) moxetumomab pasudotox – hairy cell leukaemia Potential phase III start olaparib – solid tumours Potential phase III st
Slide 36: 2013 pipeline delivery
2013 pipeline delivery Regulatory Regulatory Phase III Pipeline approvals submissions starts progression Epanova (US) Olaparib in BRCAm AZD9291 Phase I data Farxiga (US) Ovarian Cancer Metreleptin (US) Moxetumomab in MEDI4736 (PD-L1) hairy cell leukaemia Phase I data Xigduo (dapagliflozin+metformin)
Slide 37: Number of NMEs in Phase 3 pipeline
Faster than anticipated pipeline progression & re-deployed R&D spend toward late development Target of 10 potential NMEs in Phase 3 Pipeline progression driving shift pipeline by 2016 achieved already in 2013 toward late development Number of NMEs in Phase 3 pipeline 11 Late 40% 10 Development 45% 5
Slide 38: A growing and accelerating late stage pipeline
A growing and accelerating late stage pipeline Phase 1 Phase 2 Phase 3 33 New Molecular Entities 27 New Molecular Entities 11 New Molecular Entities Small molecule Large molecule Small molecule Large molecule Small molecule Large molecule AZD5363 MEDI0639 AZD4547 MEDI-573 selumetinib moxetumomab AKT
Slide 39: 19 candidates for NME registration trial starts in 2014-15
19 candidates for NME registration trial starts in 2014-15 2014 2015 AZD9291 AZD4547 ATM AVI NSCLC gastric cancer serious infections MEDI4736 MEDI-573 RDEA 3170 solid tumours metastatic breast cancer gout tralokinumab MEDI-551 sifalimumab/MEDI-546 asthma CLL systemic lupus erythematosus roxadustat (
Slide 40: Potential NME registration trial starts in 2014
Potential NME registration trial starts in 2014 2014 AZD9291 NSCLC MEDI4736 solid tumours tralokinumab We anticipate 4-5 asthma roxadustat (FG4592) NME registration ESRD/CKD trials AZD3293 Alzheimer’s mavrilimumab rheumatoid arthritis 40
Slide 41: MEDI4736 (anti-PD-L1)
MEDI4736 (anti-PD-L1) Empowering the Immune System to Fight Cancer Novel approach, supporting multiple Encouraging level of clinical activity in combination opportunities Phase I dose-escalation1 • Validated pathway Change From Baseline (%) 100 75 • Strong scientific rationale for combinations 50 25
Slide 42: AZD9291 (3rd generation EGFR-TKI)
AZD9291 (3rd generation EGFR-TKI) A novel small molecule targeting key genetic segment in NSCLC Leading the way in area of high Encouraging evidence of unmet medical need monotherapy activity1 Best % change from baseline in target lesions, n=34 40 • Oral irreversible inhibitor of both EGFR D 40 D 30
Slide 43: Roxadustat/FG4592
Roxadustat/FG4592 Anaemia treatment beyond the boundaries of current ESA therapy First in Class oral HIF-PHD inhibitor Stimulates EPO production without need for CKD & ESRD for concomitant iron treatment • Potential first HIF-PHD inhibitor with filing in 2016 (China) and 2018 (US) • Potential use in
Slide 44: AZD3293 (BACE1 inhibitor)
AZD3293 (BACE1 inhibitor) Highly potent inhibitor of the first step in Aβ peptide production Highly promising approach to address AZD3293 has demonstrated significant dose unmet medical need in Alzheimer’s dependent reduction in CSF A in Phase 11 CSF A 42 Day 14 Mean Profiles AZD3293 (BACE) MAD Bas
Slide 45: Potential NME and LCM submissions 2014-2016
Potential NME and LCM submissions 2014-2016 Key: olaparib US PT003 benralizumab Oncology gBRCAm PSR ovarian cancer LABA/LAMA COPD IL-5R asthma lesinurad brodalumab AZD9291 RIA URAT1 gout IL-17R psoriasis EGFRm+ solid tumours CAZ AVI EU metreleptin EU roxadustat (FG4592) CH CVMD BLI/cephalosporin SBI
Slide 46: AstraZeneca 2013 Full Year Results
AstraZeneca 2013 Full Year Results 46
Slide 47: Closing remarks
Closing remarks Pascal Soriot Chief Executive Officer, AstraZeneca 47
Slide 48: Carrying momentum into 2014
Carrying momentum into 2014 Q1 Q2 Q3 Q4 Farxiga, Type 2 Diabetes Epanova, Severe Iressa, NSCLC PT-003, COPD FDA Approval Hypertriglyceridaemia Submission US P3 Results PDUFA, May 5 Dapagliflozin, Type 2 Diabetes Olaparib, Ovarian Cancer Platinum Brodalumab, Psoriasis Potential Approval Japan Benrali
Slide 49: Ruud Dobber, Bahija Jallal, Mene Pangalos,
Ruud Dobber, Bahija Jallal, Mene Pangalos, EVP, Europe & EVP Global EVP, MedImmune EVP, Innovative Medicines Portfolio & Product Strategy & Early Development (interim) 49
Slide 50: AstraZeneca 2013 Full Year Results
AstraZeneca 2013 Full Year Results 50