AstraZeneca PLC · LSE:AZN
AstraZeneca — Debt Investor Presentation (July 2023)
39 slides from AstraZeneca's debt investor presentation, Jul 28, 2023
Slide 1: H1 and Q2 2023 Results
H1 and Q2 2023 Results Fixed-income investor update 28 July 2023 1
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 of 1995, AstraZeneca (hereafter ‘the Group’) provides the following cautionary statement: This document contains certain forward-looking statements wit
Slide 3: Disclaimer and Non-GAAP measures
Disclaimer This presentation is neither an offer to sell nor a solicitation of an offer to buy any securities and shall not constitute an offer, solicitation, or sale in any jurisdiction in which an offer, solicitation, or sale is unlawful. Non-GAAP measures This presentation contains financial meas
Slide 4: Key messages
Key messages AstraZeneca H1 2023 – Strong commercial performance and financial execution FY 2023 guidance reiterated Maintaining innovation and pipeline delivery Leading late-stage pipeline, proven R&D execution Well positioned to deliver industry-leading growth 2025+ Longer-term growth fuelled by e
Slide 5: Business update
Business update 5
Slide 6: Benefitting from broad-based, diverse source of revenue
Benefitting from broad-based, diverse source of revenue Strong commercial performance Broad-based, diverse source of revenue and financial execution in H1 2023 Total Revenue | +4% Core EPS | +21% H1 2023 | % Total Revenue by therapy area Oncology CVRM R&I V&I Other Rare Disease 39% 24% 14% 3% 3% 17%
Slide 7: Strong ex-COVID-19 growth across regions, disease areas
Strong ex-COVID-19 growth across regions, disease areas Double-digit growth across Oncology, CVRM, R&I Double-digit growth in US, Emerging Market, EU and Rare disease H1 Total Revenues (USD millions) and Growth vs PY H1 Total Revenues (USD millions) and Growth vs PY +16% +22% +22% +20% Ex-China: +13
Slide 8: Demand for multiple medicines driving H1 growth
Demand for multiple medicines driving H1 growth H1 2023 Performance Total Revenue Growth vs. PY Growth vs. PY USD million USD million CER% Farxiga 2,834 729 40% Imfinzi 1,976 682 57% Ultomiris 1,364 511 64% Enhertu 580 376 >2x Calquence 1,185 282 33% Tagrisso 2,915 211 12% Breztri 307 128 76% Tezspi
Slide 9: Leading late-stage pipeline, proven R&D execution
Leading late-stage pipeline, proven R&D execution Robust late-stage pipeline comprised of both Continued pipeline momentum with 8 positive LCM and NME opportunities pivotal trials in H1 2023 and catalyst-rich H2 2023 Tagrisso ADAURA OS (Adj EGFRm NSCLC) >120 ongoing late-stage clinical trials across
Slide 10: Robust Phase III catalysts in H2 2023
Robust Phase III catalysts in H2 2023 Key trial readouts reinforce transformative pipeline potential Total Revenue ambition1: capivasertib Fasenra Dato-DXd low double-digit % 2021-2025 CAPItello-290 MANDARA TROPION-Breast01 (1L mTNBC) (EGPA) (2L+ HR+/HER2- mBC) Industry-leading growth 2025+ Extend b
Slide 11: Oncology – H1 and Q2 2023
Oncology – H1 and Q2 2023 Total Revenue +22% in H1 2023 fuelled by demand growth and launch momentum Oncology Q2 2023: key dynamics H1 2023 $8.8bn, +22% 5,000 • Tagrisso +10%, strong global demand growth underpinned by 4,500 ADAURA, slightly offset by NRDL price impact 4,000 • Lynparza PS +9%, doubl
Slide 12: Oncology – key Imfinzi opportunities in focus
Oncology – key Imfinzi opportunities in focus Strong launch uptake, robust LCM pipeline supporting continued IO leadership Imfinzi new launches continue to LCM HLRs in 2023 contribute to drive near-term growth sustained, mid-term Imfinzi growth HIMALAYA • First dual IO regimen AEGEAN (early resec. N
Slide 13: BioPharmaceuticals – H1 and Q2 2023
BioPharmaceuticals – H1 and Q2 2023 Double digit growth from CVRM and R&I CVRM R&I V&I H1 2023 $5.2bn, +20% H1 2023 $3.2bn, +10% H1 2023 $632m, -76% 1,800 2,500 3,000 1,600 2,500 1,400 2,000 1,200 2,000 1,500 Total Revenue ($m) 1,000 Total Revenue ($m) Total Revenue ($m) 1,500 800 1,000 1,000 600 40
Slide 14: Farxiga – strategic development
Farxiga – strategic development Redefined outcomes for patients, clear evidence of AstraZeneca’s core strength in CVRM Diverse source of Growth driven by HF and CKD1 Farxiga SGLT2i class leadership2 Total Revenues ERoW US Heart failure Type-2 Farxiga diabetes H1 2023 Split of Farxiga SGLT2i share To
Slide 15: BioPharmaceuticals – novel platforms
BioPharmaceuticals – novel platforms Disruptive biology to access next-generation therapeutics Oligonucleotides Advanced biologics Cell therapy RNA therapies Gene therapy eplontersen (TTR ASO), MEDI7352 (NGF/TNF), Familial hyper- – HF1 mRNA ATTRv-PN/CM – Phase III pain – Phase II cholesterolaemia (L
Slide 16: Rare Disease – H1 and Q2 2023
Rare Disease – H1 and Q2 2023 Continued expansion in neurology, growth beyond complement Rare Disease Q2 2023: key dynamics H1 2023 $3.8bn, +12% 2,500 Continued strength of C5 Franchise 2,000 • Ultomiris +66%, driven by growth in neurology, expansion into new markets and successful conversion from S
Slide 17: AI in Global Operations
AI in Global Operations Leveraging the power of AI throughout our end-to-end supply chain GLOBAL OPERATIONS | drug development, manufacturing and supply chain powered by AI Drug development Manufacturing Supply chain digital synthetic route design advanced analytics and optimisation digital twins fo
Slide 18: Progressing Ambition Zero Carbon
Progressing Ambition Zero Carbon Taking bold action to mitigate climate change through new and expanded initiatives AMBITION ZERO CARBON | on track to deliver absolute reductions in GHG emissions across our value chain Scope Decarbonisation AZ Forest Scopes Transition plan BIBP Scope BIBP 3 BIBP 1&2
Slide 19: Financial update
Financial update
Slide 20: H1 2023 – Reported profit and loss
H1 2023 – Reported profit and loss H1 2023 CER change % Total Q2 2023 CER change % Total $m % Revenue $m % Revenue Total Revenue 22,295 4 100 11,416 9 100 - Product Sales 21,448 3 96 10,882 5 95 - Alliance Revenue 627 >2x 3 341 >2x 3 - Collaboration Revenue 220 (15) 1 193 n/m 2 Product Sales Gross m
Slide 21: H1 2023 – Core profit and loss
H1 2023 – Core profit and loss H1 2023 CER change % Total Q2 2023 CER change % Total $m % Revenue $m % Revenue Total Revenue 22,295 4 100 11,416 9 100 - Product Sales 21,448 3 96 10,882 5 95 - Alliance Revenue 627 >2x 3 341 >2x 3 - Collaboration Revenue 220 (15) 1 193 n/m 2 Product Sales Gross margi
Slide 22: Cash Flow, Net Debt and 2023 Financial Guidance
Cash Flow, Net Debt and 2023 Financial Guidance Continued EBITDA improvement Net Debt bridge Reiterating 2023 Guidance (CER) $bn Total Revenue • Excluding COVID-19 medicines: low double-digit % growth BIBP low-to-mid single-digit % • Including COVID-19 medicines: growth Core EPS Net debt CFO Capex D
Slide 23: Net debt position
Net debt position 30-Jun-23 31-Dec-22 $m $m Gross debt (29,838) (29,232) Cash & cash equivalents 5,664 6,166 Other investments 148 239 Net derivative financial instruments 56 (96) Closing net debt 1 (23,970) (22,923) 1. Net debt is a non-GAAP measure. The equivalent GAAP measure to Net debt is ‘liab
Slide 24: Liquidity, debt and rating summary
Liquidity, debt and rating summary • Strong liquidity at 30 June 2023: • Group cash and investments of $5.8bn • Undrawn $6.9bn committed bank facilities: $2bn mature in February 2025 and $4.9bn mature in April 2026 • Access to diverse sources of funding through US and European term debt and commerci
Slide 25: Smooth debt maturity profile with eight-year average life
Smooth debt maturity profile with eight-year average life Debt Maturity Profile at 30 June 2023 1 5,000 4,500 4,000 3,500 3,000 $m 2,500 2,000 1,500 1,000 500 0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2037 2042 2045 2048 2050 2051 USD Overdrafts, finance leases & bank collateral EUR G
Slide 26: H1 and Q2 2023 Results
H1 and Q2 2023 Results Fixed-income investor update 28 July 2023 26
Slide 27: Appendix
Appendix
Slide 28: Delivering on science-led innovation
A PPE N D I X | Pipeline Highlights Delivering on science-led innovation Selected key pipeline highlights since Q1 2023 results Oncology BioPharmaceuticals Rare Disease 10 regulatory approvals in major markets, including: Lynparza (US) Farxiga (US) Soliris (EU) prostate cancer (1st-line) (PROpel) HF
Slide 29: AstraZeneca in Lung Cancer
A PPE N D I X | Oncology tumour maps AstraZeneca in Lung Cancer Ambition for >50% of lung cancer patients to be eligible for AZN medicine by 2030 metastatic resectable Stg. I-III unresectable Stg. I-II Stg. III 1L 2L+ Leading the future of Est. epi (G7) ~200K ~30K ~70K ~350K ~290K lung cancer treatm
Slide 30: AstraZeneca in Breast Cancer
A PPE N D I X | Oncology tumour maps AstraZeneca in Breast Cancer Ambition to eliminate breast cancer as a cause of death Early Metastatic established SoC Neoadjuvant Adjuvant 1st line 2nd line 3rd line 4th line + Est. epi (G7) 540k 125k 90k 65k 55k NST→ residual disease → HER2-positive Enhertu +/-
Slide 31: Oncology – R&D highlights
A PPE N D I X | R&D highlights Oncology – R&D highlights Eight positive pivotal trial readouts so far this year ASCO highlights 2023 FLAURA2 | 1L EGFRm advanced NSCLC Presidential plenary WCLC Tagrisso Tagrisso ADAURA final overall survival R 1:1 Tagrisso + carbo/cis + pemetrexed Tagrisso + pemetrex
Slide 32: Oncology – R&D highlights
A PPE N D I X | R&D highlights Oncology – R&D highlights TROPION-Lung01 reinforces importance of Dato-DXd in NSCLC and beyond Replace CTx as Further outcomes with Assess predictive value of TROPION-Lung01 monotherapy novel combinations TROP2 biomarker Dato-DXd in 2-3L advanced NSCLC TROPION-Lung01 T
Slide 33: Rare Disease – R&D highlights
A PPE N D I X | R&D highlights Rare Disease – R&D highlights Accelerating in ALXN2220 to Phase III for ATTR-CM ALXN2220 (NI006) | mAb IgG1 Complimentary mechanisms Phase Ib1 in ATTR-CM transforming ATTR-CM Representative images from scintigraphy after treatment with ALXN2220 pathophysiology medicine
Slide 34: Rare Disease – R&D highlights
A PPE N D I X | R&D highlights Rare Disease – R&D highlights Innovative delivery platforms expanding genomic research Furthering our Liver, + + + + genomic capabilities kidney gene editing sAAVyTM CRISPR non-viral ALXN2030 non-viral CRISPR AAV (C3 siRNA) + LNP accelerating genomic portfolio ambition
Slide 35: Geographic diversity and growth
A PPE N D I X | H1 2023 Financial Highlights Geographic diversity and growth China 14% of 9% Total Revenue Europe 13% US 20% of 16% 41% of Total Revenue Total Revenue Established 8% Emerging Markets RoW (ex-China) 11% of 14% of 38% Total Revenue Total Revenue H1 2023 Regional Total Revenue as report
Slide 36: H1 2023 Reconciliation of Reported to Core Financial Measures
A PPE N D I X | H1 2023 Financial Highlights H1 2023 Reconciliation of Reported to Core Financial Measures Intangible Asset Acquisition of Reported Restructuring Amortisation & Other1 Core2 Alexion Impairments $m $m $m $m $m $m Gross Profit 18,430 118 16 57 (3) 18,618 Distribution Expense (265) - -
Slide 37: Q2 2023 Reconciliation of Reported to Core Financial Measures
A PPE N D I X | H1 2023 Financial Highlights Q2 2023 Reconciliation of Reported to Core Financial Measures Intangible Asset Acquisition of Reported Restructuring Amortisation & Other1 Core2 Alexion Impairments $m $m $m $m $m $m Gross Profit 9,456 23 8 20 (5) 9,502 Distribution Expense (131) - - - -
Slide 38: Prudent treasury risk-management policies
A PPE N D I X | Treasury Policy Prudent treasury risk-management policies The Company operates with a centralised Treasury structure so that key Treasury risks are managed at a Group level. Liquidity Policy • Prudent level of available cash and unutilised credit facilities • Group funding centrally
Slide 39: Use of AstraZeneca slides from conference calls and webcasts
Use of AstraZeneca slides from conference calls and webcasts 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 available to th