AstraZeneca PLC · LSE:AZN
AstraZeneca — Debt Investor Presentation (February 2022)
36 slides from AstraZeneca's debt investor presentation, Feb 11, 2022
Slide 1: Fixed-income investor update
Fixed-income investor update 11 February 2022
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 FY 2021 – robust growth Exceeded FY 2021 revenue guidance Maintaining innovation and pipeline delivery Continued investment in clinical stage pipeline Industry leading double-digit growth through 2025 Longer-term growth fueled by existing portfolio and new innovative medicin
Slide 5: Business update
Business update 5
Slide 6: Full year and Q4 2021: key updates
Full year and Q4 2021: key updates Continuing to deliver on our strategic objectives Robust growth Broad-based performance Science-led innovation Exceeded FY 2021 revenue guidance Delivering value to patients Strong Q4 2021 performance • Total Revenue $37.4bn (+38%) • Oncology $13.7bn (+17%) • Tezsp
Slide 7: Full year and Q4 2021: performance
Full year and Q4 2021: performance Oncology, CVRM, R&I and Rare Disease all delivered strong growth Growth Growth across disease areas across geographies (excluding Vaxzevria) CER CER CER CER FY 2021 Q4 2021 FY 2021 Q4 2021 growth growth growth growth $m $m $m $m % % % % 13,663 17 3,919 21 US 12,164
Slide 8: AstraZeneca: 2022-2025
AstraZeneca: 2022-2025 Industry leading double-digit growth Durable growth drivers through 2025 Diversification including multiple blockbuster-medicines of disease areas and geographies Q4 2021 Total Revenue1 Rare Oncology CVRM R&I V&I Disease Other 9% Est. RoW 13% Rare Oncology US 17% 38% Europe 38
Slide 9: Tagrisso and Imfinzi
Tagrisso and Imfinzi Increased reimbursement and launches offsetting COVID-19 impact on diagnosis Tagrisso: 13% growth to $5.0bn Imfinzi: 16% growth to $2.4bn Approvals/Reimbursements: 69/19 (adjuvant), 92/52 (1L), 92/68 (2L) Approvals/Reimbursements: 75/35 (NSCLC), 67/9 (ES-SCLC) $m $m 1,400 • US +
Slide 10: Lynparza
Lynparza The globally leading PARP inhibitor across four tumour types Product sales Growth in all regions Collaboration revenue1 30% growth to $2.3bn Approvals: 86 (OC), 84 (mBC), 70 (mCRPC) $3.5bn recorded, $4.2bn future potential $m $m 700 1,000 • US +24% 900 600 Growth driven by ovarian, prostate
Slide 11: Calquence and Enhertu
Calquence and Enhertu Strong launch trajectories continue Calquence: 136% growth to $1.2bn Enhertu: 123% growth to $214m Approvals/Reimbursements: 76/25 (CLL), 37/13 (MCL) Approvals/Reimbursements: 9/4 (mBC), 4/2 (GC) $m $m 450 • Global $1,238m; US $1,089m 80 • Global $214m; US $169m 400 • US CLL 70
Slide 12: BioPharmaceuticals: Cardiovascular, Renal and Metabolism
BioPharmaceuticals: Cardiovascular, Renal and Metabolism Total Revenue $8.0bn; growth +9% Farxiga: 49% growth to $3.0bn Lokelma Strong momentum continues, fastest growing SGLT2i globally Global sales of $175m $m 100% US branded K+ binder TRx share1 900 90% 80% 800 70% • US +29%, Europe +52% and EM 6
Slide 13: BioPharmaceuticals: Respiratory and Immunology
BioPharmaceuticals: Respiratory and Immunology Total Revenue $6.0bn; growth +9% Fasenra Breztri Saphnelo 31% growth to $1.3bn COPD launch progressing; sales of $203m SLE launch progressing $m 400 • Positive early market response, despite T8 triple FDCs brand share (DOT)2 300 13% COVID-19 headwinds 2
Slide 14: BioPharmaceuticals: R&D pipeline highlights
BioPharmaceuticals: R&D pipeline highlights Four NMEs approved in 2021: Saphnelo, Tezspire, Evusheld and Vaxzevria Evusheld Vaxzevria eplontersen Only long-acting antibody combination Clinical and real-world evidence ATTR shown to prevent and treat COVID-19 supports use as booster Collaboration with
Slide 15: Emerging Markets
Emerging Markets Total revenue $12.3bn (including Vaxzevria1 revenue) Emerging markets +10%2 Diversified growth across geographies $m China +4%; Ex-China EMs +21%2 Launches in ex-China Emerging Markets progressing well 4,000 • Oncology $3.2bn, +6%: Tagrisso $1.3bn, up 6% continued 3,500 impact from
Slide 16: Rare Disease
Rare Disease Total Revenue $3.1bn; +9% pro rata1 FY 2021 Growth across all regions Rare Disease performance Pro rata growth, 20211 C5 Franchise (Soliris + Ultomiris) +11% Q4; +8% pro rata FY 20212; +9%1 • Soliris: double-digit volume growth in +8% 3,500 Neurology; Q4 benefitted from tender 2,000 3,0
Slide 17: Late-stage pipeline delivery
Late-stage pipeline delivery Important milestones since Q3 2021 update Medicine Indication / Event Geography Regulatory Saphnelo systemic lupus erythematosus: CHMP positive opinion EU approvals or Tezspire severe asthma US other regulatory action Evusheld COVID-19 prophylaxis: emergency use authoris
Slide 18: AstraZeneca: 2025+
AstraZeneca: 2025+ Delivering growth through innovation Robust life-cycle Innovative Strategic business Attractive management late-stage pipeline development LoE profile Supports durable, Continued investment in Recent clinical stage US LoE for growing revenue base clinical stage pipeline business d
Slide 19: 2022 Guidance
2022 Guidance Continuing to drive innovation and growth Total revenue guidance Core EPS guidance Headwinds Tailwinds • Ongoing pricing pressure in China, Grow by high-teens % Grow by mid-to-high twenties % • First full year of Alexion ownership mid single-digit revenue decline $Bn $ anticipated 45 •
Slide 20: Financial update
Financial update
Slide 21: Reported profit and loss
Reported profit and loss FY 2021 CER change % total Q4 2021 CER change % total $m % revenue $m % revenue Total Revenue 37,417 38 100 12,011 63 100 - Product Sales 36,541 38 98 11,498 65 96 - Collaboration Revenue 876 20 2 513 29 4 Gross margin 66.0% (12.6) pp 59.8% (16.0) pp Operating expenses1 25,4
Slide 22: Core profit and loss
Core profit and loss Core EPS above FY 2021 guidance FY 2021 CER change % total Q4 2021 CER change % total $m % revenue $m % revenue Total Revenue 37,417 38 100 12,011 63 100 - Product Sales 36,541 38 98 11,498 65 96 - Collaboration Revenue 876 20 2 513 29 4 Gross margin 74.2% (4.7) pp 74.3% (1.9) p
Slide 23: Net debt and capital allocation priorities
Net debt and capital allocation priorities FY 2021 dividend increased to $2.87 (intended annualised dividend increase of $0.10) Net debt Capital allocation priorities Net debt: $24,322m; EBITDA1: $7,586m $bn • Strong investment grade credit rating • Reinvestment in the business • Value-enhancing bus
Slide 24: Net debt position
Net debt position 31-Dec-21 31-Dec-20 $m $m Gross debt (30,781) (20,380) Cash & cash equivalents 6,329 7,832 Other investments 69 160 Net derivative financial instruments 61 278 Closing net debt 1 (24,322) (12,110) 1. Net debt is a non-GAAP measure. The equivalent GAAP measure to Net Debt is ‘liabil
Slide 25: Liquidity, debt and rating summary
Liquidity, debt and rating summary • Strong liquidity at 31 December 2021 • Group cash and investments of $6.4bn • Undrawn $4.9bn committed bank facilities which mature in 2025 • Access to diverse sources of funding through US and European term debt and commercial paper programmes Utilisation as at
Slide 26: Smooth bond maturity profile with eight-year average life
Smooth bond maturity profile with eight-year average life Debt Maturity Profile at 31 December 2021 1 6,000 5,000 4,000 $m 3,000 2,000 1,000 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2037 2042 2045 2048 2050 2051 USD Commercial Paper Overdrafts, finance leases & bank collateral EUR GBP Ter
Slide 27: Fixed-income investor update
Fixed-income investor update 11 February 2022
Slide 28: AstraZeneca: the next chapter
AstraZeneca: the next chapter Industry-leading growth, best-in-class innovative pipeline Double-digit CAGR Differentiated, Financial Reinvestment in our through 2025 durable portfolio execution main disease areas ` Longer-term growth Attractive LOE Continued focus High-growth pipeline fueled by exis
Slide 29: Appendix
Appendix
Slide 30: Geographic growth
Geographic growth Strong performance in all major regions China 4% 16% of Total Revenue Europe 40% US 22% of 38% Japan 37% 33% of Total Revenue 9% of Total Revenue Total Revenue Other RoW 38% Emerging Markets 4% of (ex-China) Total Revenue 17% of 89% Total Revenue FY 2021 Regional Total Revenue as r
Slide 31: Pipeline catalysts for 2022 - 2023
Pipeline catalysts for 2022 - 2023 Industry leading news flow Oncology BioPharmaceuticals Rare Disease H1 2022 H2 2022 2023 Regulatory Lynparza – breast cancer (adjuvant) (US) Tagrisso – EGFRm NSCLC (adjuvant) (JP) Enhertu – HER2+ breast cancer (2L) (US) Imfinzi +/- tremelimumab – NSCLC (1L) decisio
Slide 32: Scope 1+2 emissions reduction targets
Scope 1+2 emissions reduction targets Absolute Scope 1+2 emissions reduction targets Target ranking Target temperature Company Rank alignment (°C)2 AstraZeneca <1.1 1 Novo Nordisk <1.1 2 Takeda <1.1 3 Thousand tonnes tCO2e Sanofi 1.15 4 GSK Merck & Co 1.15 5 Pfizer Roche 1.24 6 Sanofi Johnson & John
Slide 33: FY 2021 Reconciliation of Reported to Core Financial Measures
FY 2021 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 24,980 722 66 2,206 (1) 27,973 Distribution Expense (446) - - - - (446) R&D Expense (9,736) 223 1,496 28
Slide 34: Q4 2021 Reconciliation of Reported to Core Financial Measures
Q4 2021 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 7,386 501 19 1,157 (3) 9,060 Distribution Expense (124) - - - - (124) R&D Expense (2,584) 68 101 18 1 (2
Slide 35: Prudent treasury risk-management policies
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 managed Investment policy • Secu
Slide 36: 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
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