Slide 1: 3Q and Nine Months Results 2012
3Q and Nine Months Results 2012
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: 3Q and Nine Months Results 2012
3Q and Nine Months Results 2012
Slide 4: Pascal Soriot, Chief Executive Officer
3Q and Nine Months Results 2012 Pascal Soriot, Chief Executive Officer
Slide 5: Simon Lowth, Chief Financial Officer
3Q and Nine Months Results 2012 Simon Lowth, Chief Financial Officer
Slide 6: Headline results 3Q 2012
Headline results 3Q 2012 2012 2011 Actual CER $m $m growth growth Revenue 6,682 8,213 -19% -15% Core Operating Profit 2,632 3,177 -17% -14% Core EPS $1.51 $1.71 -12% -8% Restructuring ($0.15) ($0.12) MedImmune/Merck amortisation ($0.11) ($0.08) Intangible impairments - ($0.01) Legal provisions/other
Slide 7: Headline results 9Mo 2012
Headline results 9Mo 2012 2012 2011 Actual CER $m $m growth growth Revenue 20,691 24,935 -17% -15% Core Operating Profit 7,898 10,177 -22% -20% Core EPS $4.85 $5.67 -14% -11% Restructuring ($0.71) ($0.27) MedImmune/Merck amortisation ($0.29) ($0.24) Intangible impairments - ($0.01) Legal provisions/
Slide 8: Regional revenue performance 3Q 2012
Regional revenue performance 3Q 2012 2012 CER CER $m growth $m Global Revenue 6,682 -15% (1,207) Astra Tech/Aptium -1.8 pts US 2,573 -19% (614) Seroquel IR (750) Ex-Seroquel IR +6% Western Europe 1,461 -20% (415) Seroquel IR, Nexium, Atacand & Merrem generics Established ROW 1,211 -18% (272) Japan 7
Slide 9: Brand revenue performance 3Q 2012
Brand revenue performance 3Q 2012 2012 CER CER $m growth $m Global Revenue 6,682 -15% (1,207) Crestor 1,544 -3% (55) Canada (153); ex-Canada +7% Symbicort 785 +11% 84 Seroquel XR 373 +8% 29 Iressa 154 +11% 16 Faslodex 167 +28% 39 ONGLYZATM 84 +42% 25 Brilinta/Brilique 24 +100% 13 Nexium 995 -6% (62)
Slide 10: Crestor
Crestor 3Q 2012 Sales: $1,544m -3% US 1,800 • US TRx -3.3% 1,600 EM ROW - Statin market +0.9% 1,400 $162m +4% EST ROW • Crestor volumes stable post generic 1,200 $272m -36% atorvastatin 1,000 W. EUR $277m +4% 800 600 US 400 $833m +11% 200 0 3Q 2011 3Q 2012 US W EUR EST ROW EM ROW 10
Slide 11: Crestor: US net dynamic volume trend
Crestor : US net dynamic volume trend CRESTOR Dynamic Volumes1 35,000 Gx atorva Simva Warning Lipitor LOE Multi-Source June 8 Nov 30 May 30 30,000 25,000 20,000 15,000 10,000 5,000 0 -5,000 -10,000 -15,000 22-Jul 6-Jan 8-Jun 20-Jul 13-May 27-May 11-May 25-May 15-Apr 29-Apr 19-Aug 16-Sep 30-Sep 13-Ap
Slide 12: Crestor: US dynamic volume stable in Commercial and Part D segments
Crestor: US dynamic volume stable in Commercial and Part D segments, with erosion evident in Medicaid Commercial and Medicare Part D1 Medicaid FFS1 35,000 Gx atorva Simva Multi-Source label change Lipitor LOE May 30 11,000 30,000 Medicaid Contracting Decision 9,000 25,000 20,000 7,000 15,000 5,000 1
Slide 13: Crestor
Crestor 3Q 2012 Sales: $1,544m -3% US 1,800 • US TRx -3.3% 1,600 EM ROW - Statin market +0.9% 1,400 $162m +4% EST ROW • Crestor volumes stable post generic 1,200 $272m -36% atorvastatin 1,000 W. EUR $277m +4% 800 RoW 600 • RoW sales $711m; -15% US 400 $833m +11% - Adj. for LOE in Canada; +2% 200 0 3
Slide 14: Brilinta: US launch progress
Brilinta: US launch progress Steady increase in key indicators Performance trend in TRxs 4Q 1Q 2Q 3Q 2011 2012 2012 2012 3,400 Top 400: on Formulary 46% 68% 75% 79% 3,200 3,000 2,800 2,600 3Q TRx: 33,829 +55% vs2Q 2,400 Top 400: on Protocol 14% 20% 32% 34% 2,200 2,000 TRx Volume 1,800 1,600 2Q TRx:
Slide 15: Brilique: Strong Performance in Germany
Brilique: Strong Performance in Germany • Hospital physicians reported Brilique on protocol in 82% of target hospitals through September, with 82% of these physicians trialing Brilique Share of ACS initiations : OAP Retail Dynamic Share BRILINTA “On Protocol “ Hospitals Clopidogrel Prasugrel BRILIQU
Slide 16: Brilique: Performance in Nordic Region
Brilique: Performance in Nordic Region DENMARK: OAP Volume Market Share by Channel – Total NORWAY: OAP Volume Market Share by Channel – Total BRILIQUE prasugrel BRILIQUE prasugrel 9.0% 8.0% 8.0% 8.0% 7.0% 7.1% OAP DOT Mkt. Share OAP DOT Mkt. Share 7.0% 6.0% 6.0% 5.0% 5.0% 4.0% 3.7% 4.0% 3.0% 3.0% 2.
Slide 17: Brilique: Launch in Italy
Brilique: Launch in Italy • Hospital physicians reported Brilique on formulary in 61% of target hospitals through September, with 54% of these physicians trialing Brilique Target Hospital Cardiologist Perceived Share of ACS initiations: Formulary Listing BRILINTA “On Formulary” Hospitals BRILIQUE on
Slide 18: ONGLYZA
ONGLYZATM 3Q 2012 Revenue: $84m +42% 140 US • TRx for DPP4s up 21% in 3Q 120 • AZ franchise share: 17.7% (Sept 2012) 100 EM ROW $8m +100% - ONGLYZATM share: 11.8% 80 EST ROW $3m +50% - KOMBIGLYZE XRTM share: 5.9% W. EUR 60 $11m +22% 40 RoW US $62m +41% • RoW revenue $22 million, +47% 20 0 3Q 2011 3Q
Slide 19: Core margin: 3Q 2012
Core margin: 3Q 2012 CER Delta vs $m % % sales PY CER Revenue 6,682 -15% - Core Gross Margin 5,422 -15% 81.1 -10 bps Distribution (90) +2% 1.3 -20 bps Core SG&A (2,028) -12% 30.3 -100bps Core Other Income 416 +103% 6.2 +350 bps Core Pre-R&D Profit 3,720 -11% 55.7 +220 bps Core R&D (1,088) -3% 16.3 -
Slide 20: 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 1Q 2Q 3Q 9Mo Total 702 205 253 1,160 COGS 55 6 14 75 R&D 445 136 116 697 SG&A 202 63 123 388 Estimated annual benefits of $1.6 billion by end 2014 20
Slide 21: 9Mo 2012: Cash flow/distributions
9Mo 2012: Cash flow/distributions Cash generated from operating activities $4.1 billion (9Mo 2011 $4.8 billion) - Working capital management and lower tax payments, partially offset lower operating profit Shareholder distributions - Cash distributions $5.9 billion YTD - Net share repurchases • Net s
Slide 22: 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% 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; add back $250m for Nexium
Slide 23: 3Q and Nine Months Results 2012
3Q and Nine Months Results 2012