Slide 1: Q1 Results 2012
Q1 Results 2012 David Brennan, CEO
Slide 2: Q1 2012
Q1 2012 • First quarter results reflect challenging revenue picture • Pipeline strengthened by: • Amgen collaboration on 5 clinical stage projects in inflammation • Agreement to acquire Ardea Biosciences Inc adds Phase III asset for treatment of gout • FORXIGATM: positive recommendation for approval
Slide 3: Q1 Results 2012 - Chief Financial Officer
Q1 Results 2012 Simon Lowth, Chief Financial Officer
Slide 4: Headline results Q1 2012
Headline results Q1 2012 2012 2011 Actual CER $m $m growth growth Revenue 7,349 8,292 -11% -11% Core Operating Profit 2,997 3,678 -19% -18% Core EPS $1.81 $ 2.23 -19% -19% Restructuring ($0.44) ($0.07) Merck & MedImmune amortisation ($0.09) ($0.08) Intangible impairments -- -- Legal provisions ($0.0
Slide 5: Regional revenue performance Q1 2012
Regional revenue performance Q1 2012 2012 CER CER $m growth $m Global Revenue 7,349 -11% (918) LOE -8pts; Astra Tech -1.7pts Gov’t interventions $370m US 2,920 -12% (384) Seroquel IR returns provision $223m Western Europe 1,775 -19% (427) Nexium, Arimidex, Merrem generics Established ROW 1,238 -9% (
Slide 6: Brand revenue performance Q1 2012
Brand revenue performance Q1 2012 2012 CER CER $m growth $m Global Revenue 7,349 -11% (918) Crestor 1,500 +2% 26 Symbicort 723 -3% (19) Seroquel XR 384 +14% 49 ONGLYZATM 72 +106% 37 Nexium 953 -18% (204) Seroquel IR 754 -25% (252) Seloken/Toprol-XL 224 -8% (19) Arimidex 144 -39% (90) Merrem 100 -40%
Slide 7: Crestor: US performance
Crestor: US performance TRx growth slightly ahead of market post atorvastatin In 18 wks post atorvastatin: Crestor TRx’s +2% vs Prior Yr Crestor Continuing Therapy Rx’s stable (94% of Total volume) Generic Atorvastatin November 30th +2% 94% +5% Source: IMS NPA (TRx), Data Week ending 03/30/12 Source
Slide 8: Crestor: US
Crestor: US Steady New to therapy (NTS) and Switch To volume… and Switch From trending favourably Crestor Dynamic Volumes Source: IMS NPA Market Dynamics, Data Week ending 03/30/12
Slide 9: Brilique: Germany
Brilique: GERMANY Hospital physicians reported Brilique on protocol in 79% of target hospitals through March 2012 Where on protocol in target hospitals, Brilique now leads in ACS hospital initiations Share of ACS initiations : BRILINTA “On Protocol “ Hospitals 70% 60% 50% 40% 37% 30% 33% 29% 20% 10%
Slide 10: Brilinta: US
Brilinta: US Progress in Q1 2012 • Hospital formulary access: 68% of top 400 hospitals (up from 46% in Q4) • On protocol in 20% of top 400 hospitals (up from 14% in Q4) • Trial rate among Interventional Cardiologists is 15.4% (up from 6% in Q4) • Managed markets: Unrestricted access for 61% of cover
Slide 11: Brilinta: US
Brilinta: US CV Mortality benefit gaining traction Inflection in TRx trend vs Q4 exit rate ICs ranking product above all competitors : “CV mortality reduction benefit” 18% 17% 16% 14% 12% 12% 11% 10% 9% 9% 8% 8% 8% 8% 7% 7% 6% 6% 6% 6% 5% 4% 4% 2% 0% Nov 2011 Dec 2011 Jan 2012 Feb 2012 Mar 2012 Clop
Slide 12: Core margin: Q1 2012
Core margin: Q1 2012 CER Delta vs $m % % sales PY CER Revenue 7,349 -11% - Core Gross Margin 6,029 -13% 82.0 -190 bps Distribution (76) -3% 1.0 -10 bps Core SG&A (2,138) -9% 29.1 -80 bps Core Other Income 267 +25% 3.6 +110 bps Core Pre-R&D Profit 4,082 -14% 55.5 -170 bps Core R&D (1,085) +2% 14.7 -1
Slide 13: Restructuring Programme: Phase 2012-14
Restructuring Programme: Phase 3 2012-14 • Total programme cost estimated at $2.1 billion; most to be taken in 2012 - $702 million charged in Q1 2012 • Cost of Sales: $55m • R&D: $445m • SG&A: $202m - Estimated annual benefits of $1.6 billion by end 2014
Slide 14: Q1 2012: Cash flow/distributions
Q1 2012: Cash flow/distributions Cash generated from operating activities $1.5 billion (Q1 2011 $1.9 billion) - Disciplined management of working capital partially offsets the reduction in operating profit and the $500 million pension fund contribution Total cash distributions: $3,417 million - $2,5
Slide 15: Guidance for 2012 (Core basis)
Guidance for 2012 (Core basis) Revenue Low to mid-teens decline at CER Gross Margin Below 2011, but above 80% Core Pre-R&D Margin Below 2011, but upper half of mid-term planning range Net Finance Expense In line with 2011 Other Operating Income Low double-digit decline vs 2011 Tax Rate Effective rep
Slide 16: Q1 Results 2012 - Chief Financial Officer
Q1 Results 2012 Simon Lowth, Chief Financial Officer