Slide 1: 2Q and Half Year Results 2013
2Q and Half Year Results 2013 1
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding F Forward-Looking d L ki Statements St t t In order, among other things, to utilise the 'safe harbour' provisions of the US Private Securities Litigation Reform Act 1995,, we are providing p g the following g cautionaryy statement: This ppresentation contains certain f
Slide 3: 2Q and Half Year Results - Pascal Soriot, CEO
2Q and Half Year Results 2013 P Pascal l Soriot, S i t Chief Chi f Executive E ti Officer Offi 3
Slide 4: 2Q highlights
2Q highlights • 2Q revenue down 4% CER: ~ $500m decline from loss of exclusivity • Good progression of our growth platforms: $400m $ (double-digit growth @ CER) • Growing late-stage pipeline: − 2 NDA submissions − 1 Phase 3 start − 3 late-stage projects added via business development 4 4
Slide 5: Headline results 2Q 2013
Headline results 2Q 2013 2013 2012 Actual CER $m $m growth growth Revenue 6,232 6,660 -6% -4% Core Operating Profit 2,056 2,334 -12% -10% Core EPS $1 20 $1.20 $1 57 $1.57 -23% 23% -21% 21% Restructuring ($0.18) ($0.12) Intangible amortisation ($0.27) ($0.13) Intangible impairments ($0.10) $ ($0.01)
Slide 6: Revenue impact from loss of exclusivity is moderating
Revenue impact from loss of exclusivity i moderating is d ti 500 232 142 152 128 Rest of Portfolio 0 CER growtth ($m) LOE -500 -479 C -1000 -1019 -1065 1065 -1388 -1500 3Q 12 4Q 12 1Q 13 2Q 13 6 6
Slide 7: 5 key growth platforms
5 key growth platforms 1. Brilinta 2. Diabetes 3. Emerging Markets 4. Respiratory 5 Japan 5. 7 7
Slide 8: Regional revenue performance 2Q 2013
Regional revenue performance 2Q 2013 2013 CER CER $m growth $m Global Revenue 6,232 -4% (247) US 2 252 2,252 -4% 4% (87) Ex-Seroquel IR & Toprol-XL: +4% Europe 1,546 -13% (231) Seroquel IR, Seroquel XR, Atacand & Nexium LOE Established ROW 1,059 -6% (83) Japan 657 +10% 72 Nexium, Crestor , & Symbico
Slide 9: Good performance in Emerging Markets
Good performance in Emerging Markets AZ Emerging Markets Quarterly Sales Growth Rates 14% (% at CER) 12% 12% 10% 9% Other Markets +9% 8% 8% 7% 6% 4% Supply chain issues China +21% 2% 2% 0% 0% 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 Source: AZ internal data 9 9
Slide 10: Brilinta/Brilique
Brilinta/Brilique 2Q 2013 Sales: $65m US • US – total TRx’s increased 33% vs. $m prior quarter 70 - Gained 9 points of preferred, EM unrestricted access in Medicare 60 $7m Part D plans, now >70% EST ROW $4m 50 - Delivering g acceleration plan, including g 200 Transition of Care nurses in field 40 1s
Slide 11: Brilinta US: Steady growth
Brilinta US: Steady growth Increasing New to Brand share in OAP market TRx growth +33% 2Q vs 1Q 2013 TRx Actuals 6.0% 8,000 5.7% 7,500 7,000 5.0% 4.8% 6,500 2Q TRx: 84,109 84 109 +33% 6,000 4.0% 5,500 3.8% 3.5% 5,000 4,500 1Q TRx: 63,288 3.0% 2.8% 4,000 3,500 2.1% 3,000 2.0% 2,500 2,000 1.0% 1,500 0
Slide 12: Brilinta: ROW Performance
Brilinta: ROW Performance OAP Volume Market Share – All Channels OAP Volume Market Share – All Channels Germany Italy 10.0% BRILINTA prasugrel 3.0% BRILINTA prasugrel DOT) Market Share e DOT) Market Share 8.0% 7.0% 2.2% 6.8% 2.0% 6.0% 2.0% 4 0% 4.0% OAP Volume (D OAP Volume (D 1.0% 2.0% 0.0% 0.0% OA
Slide 13: Diabetes Franchise
Diabetes Franchise 2Q 2013 Revenue: $200m $m Onglyza franchise 250 • US revenue: +29% - DPP4 Market growth: +6% TRx - Franchise TRx share 16.0% in June; stabilised Symlin 200 $10m - (-10bps from March) post formulary changes in 1Q Forxiga $3m • ROW revenue +23% Bydureon • SAVOR top line results $32m
Slide 14: Onglyza Family
Onglyza Family (5 we eek Rolling S Share) 14% 16% 18% 20% 22% 24% 18-May 25-May 1-Jun 8-Jun 15-Jun 22-Jun 29-Jun 6-Jul 13-Jul 20-Jul 27-Jul 3-Aug 10-Aug 17-Aug TRx Share 24-Aug 31-Aug Chart shows Rolling 5 weeks share of DPP4 Market 7-Sep 14-Sep Source: IMS APLD (Retail+Mail Order), IMS NPA(Un-equal
Slide 15: Bydureon/Byetta: US TRx trends
Bydureon/Byetta: US TRx trends GLP-1 Market TRx 70% 60% 50% 40% 30% 20% 10% 0% Byetta Bydureon Exenatide Victoza Source: IMS APLD Monthly Data May‘13. June TRx estimate based on weeklies in June. Please note the Exenatide NBRx share is Exenatide Family NBRx share and eliminates switches between the
Slide 16: Forxiga launch uptake – Germany and UK
Forxiga launch uptake – Germany and UK Brand PDOTs - Launch Uptake, Germany 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 Forxiga Januvia O Onglyza Brand PDOTs - Launch Uptake, UK 250,000 200,000 150,000 100 000 100,000 50,000 0 Forxiga Januvia Onglyza 16 Source
Slide 17: Symbicort
Symbicort 2Q 2013 Sales: $842m +8% CER US • Symbicort S bi t TRx’s TR ’ +16% 16% vs market k t +2% 2% $m • TRx share at 24.1% in June 2013, +1.8 pts since December 2012 EM 800 $78m +19% • New patient share 30.7% in June; new high EST ROW 700 $101m +2% 600 ROW 500 EUR • Symbicort sales in ROW were $5
Slide 18: Symbicort: US market share trend
Symbicort: US market share trend 31% 30 7% 30.7% NTC Share NRx Share TRx Share 29% nthly Shares s 27% 25.5% 25% 24.1% BICORT Mon 23% 21% SYMB 19% 17% 15% Source: TRx and NRx from IMS Monthly NPA Data 18 NTC from IMS Monthly NPA APLD Data 18
Slide 19: Achieve scientific leadership
Achieve scientific leadership 1 FOCUS on distinctive science in 3 core TAs Achieve PRIORITISE & ACCELERATE our pipeline scientific leadership TRANSFORM our innovation culture & model 19 19
Slide 20: Recent pipeline news
Recent pipeline news • Forxiga (dapagliflozin) NDA resubmitted in US; 11 January 2014 PDUFA • Moxetumomab Phase III start • Headline results for SAVOR study • Onglyza met its primary safety objective of non-inferiority and did not meet the h primary i efficacy ffi objective bj i off superiority i i
Slide 21: Growing late-stage pipeline
Growing late-stage pipeline Phase 1 - 25 NMEs Phase 2 - 23 NMEs Phase 3 / Reg - 8 NMEs Small molecule Large molecule Small molecule Large molecule Small molecule Large molecule AZD5363 MEDI0639 selumetinib MEDI-551 MEDI 551 Lesinurad moxetumomab AKT solid tumours DLL-4 solid tumours MEK solid tumour
Slide 22: Business development aligned with priority TAs
Business development aligned with priority TAs Early Stage CV/Metabolism Oncology Respiratory/Inflammation/ Autoimmune NGM enteroendocrine cells AccurinTM mRNA mRNA Diabetes/Obesity nanomedicine 3 preclinical projects ACP-501 Reverse cholesterol RDX5791 transport End stage renal disease & chronic ki
Slide 23: Cambridge Biomedical Campus: A vibrant innovation hub
Cambridge Biomedical Campus: A vibrant innovation hub Future site of New UK R&D Centre and Papworth Hospital Global Corporate Headquarters Addenbrooke’s Hospital The Rosie Hospital L b Laboratory t off School of Clinical Medicine Molecular Biology Cambridge Institute 23 23
Slide 24: 2Q and Half Year Results - Simon Lowth, CFO
2Q and Half Year Results 2013 Si Simon Lowth, L th Chief Chi f Financial Fi i l Officer Offi 24
Slide 25: Core margin: 2Q 2013
Core margin: 2Q 2013 CER Delta vs $m % % sales PY CER Revenue 6,232 -4% - g Core Gross Margin 5,127 , -2% 82.3 +110 bps p Distribution (76) +2% 1.2 -10 bps Core SG&A (2 173) (2,173) +6% 34 9 34.9 -320 320 bps Core Other Income 218 +19% 3.5 +60 bps Core Pre-R&D Profit 3,096 -6% 49.7 -160 bps Core R&D
Slide 26: Phase 4 restructuring programme
Phase 4 restructuring programme Total cost 1Q 13 2Q 13 $m $m $m R&D 1,380 291 62 SG&A 790 240 160 COGS 130 12 86 Total 2,300* 543 308 Phasing Costs: ~$1,300m in 2013; balance split broadly evenly between 2014/15; small residual in 2016 Benefits: ~$800m by end 2016, around ½ by end 2014 * Of which ca
Slide 27: 1H 2013: Cash flow/distributions
1H 2013: Cash flow/distributions Cash generated from operating activities $3.8 billion (1H 2012 $2.8 billion) • Lower tax and interest payments partially offset the lower operating profit in 2013 (which included higher non-cash costs) • A lump sum pension contribution drove higher g outflows in the
Slide 28: Guidance (Core basis)
Guidance (Core basis) Revenue (CER) Mid to High-single digit decline Core Operating Costs (CER) Revised: Now a low to mid single g digit g increase vs 2012 (R&D + SG&A) Core other income < $600 million (Pending resolution of Pulmicort Respules appeal) Reported tax rate Around 23 percent Core EPS (CE
Slide 29: 2Q and Half Year Results 2013
2Q and Half Year Results 2013 29