AstraZeneca PLC · LSE:AZN
AstraZeneca — Debt Investor Presentation (July 2021)
40 slides from AstraZeneca's debt investor presentation, Jul 29, 2021
Slide 1: Fixed-income investor update
Fixed-income investor update 29 July 2021
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 2021 – growth profile enhanced FY 2021 financial guidance updated to include the contribution of Alexion in the year Maintaining innovation and pipeline delivery 22 Phase III medicines and lifecycle projects in addition to advancing early and mid-stage pipeline Alexion ac
Slide 5: Business update
Astrazeneca What science can do Business update
Slide 6: H1 2021: growth profile enhanced
H1 2021: growth profile enhanced Key highlights Total revenue +18%, incl. 9% from the pandemic COVID-191 vaccine. Total revenue excl. vaccine +9% Q2 growth 12% excl. vaccine Growth: Oncology +15% and New CVRM2 +16%. Respiratory & Immunology +6%. Emerging markets +21% Core operating profit +20%, supp
Slide 7: H1 2021: total revenue +18%
H1 2021: total revenue +18% Vaccine contributed 9% of growth Total revenue excl. pandemic COVID-19 vaccine New medicines the up by 9% in H1 2021 and by 12% in Q2 2021 major contributor $m +$1.7bn 550 450 incremental revenue of the new medicines compared to H1 20201 350 Total revenue growth, per cent
Slide 8: Oncology and New CVRM drove growth
H1 2021: growth profile enhanced Oncology and New CVRM drove growth Growth across Growth across disease areas geographies H1 ‘21 growth ratio Q2 ‘21 growth ratio H1 ‘21 growth ratio Q2 ‘21 growth ratio $m % % $m % % $m % % $m % % Oncology 6,360 15 41 3,337 14 41 EM1 5,459 21 35 2,868 32 35 New CVRM
Slide 9: Tagrisso and Imfinzi
Tagrisso and Imfinzi Growth improved across the lung cancer franchise Tagrisso: 17% growth to $2.5bn Imfinzi: 18% growth to $1.2bn $m Approvals 57 (adjuvant), 91 (1L), 91 (2L)1 $m Approvals 734 (NSCLC5), 574 (ES-SCLC6) 1,400 • US +18% (35% of total) 700 • US +4% (51% of total) Diagnoses started to r
Slide 10: Lynparza
Lynparza The globally-leading PARP1 inhibitor $m 34% growth in Approvals 84 (ovarian), 82 (breast), 63 Collaboration $m sales to $1.1bn (pancreatic) and 60 (prostate cancer) revenue 700 1,000 • US +29% (46% of total) 600 Growth primarily driven 800 500 by use in prostate cancer 400 • Europe +38% 600
Slide 11: Calquence and Enhertu
Calquence and Enhertu Launches continued ahead Calquence: 150% growth to $0.5bn Enhertu $m Approvals: 66 (CLL1) and 32 countries (MCL2)3 $m Approvals: US, EU, JP (mBC6); US, JP (mGC7) 350 • Global $490m; US $445m • Global $89m; US $75m $161m total US in-market 300 • US CLL sales by Daiichi Sankyo 25
Slide 12: BioPharmaceuticals: New CVRM
BioPharmaceuticals: New CVRM 16% growth driven by Farxiga and Renal New CVRM Farxiga $m 16% growth $m 53% growth - the fastest-growing SGLT2i globally 1,500 750 • US +27% Strong market share growth boosted 1,250 by HFrEF1 indication and CKD launch 1,000 500 • Europe +51% 750 Strong volume growth boo
Slide 13: BioPharmaceuticals: Respiratory & Immunology
BioPharmaceuticals: Respiratory & Immunology 6% growth with improved year-on-year performance in Q2 Respiratory Improved performance with new $m 6% growth medicines offsetting mature ones 1,750 • US +17% • EM +10% Symbicort (-5%); H1 2020 inventory Pulmicort ($405m, +2%); increased 1,500 and COVID-1
Slide 14: Emerging markets
Emerging markets Diverse and solid growth Emerging markets +21% Performance driven by new medicines $m EM excl. China +36%; China +11% up 29% (35% of total revenue; $1.8bn1) 3,000 • Oncology +6%: Tagrisso (+10%); March 2021 NRDL inclusion 2,500 New CVRM +28%: Forxiga (+77%); roxadustat ($92m) 2,000
Slide 15: Rare diseases: a new disease area in AstraZeneca
Rare diseases: a new disease area in AstraZeneca Consolidation and financial reporting to start from closing Alexion pre-acquisition stand- Future financial reporting alone H1 and Q2 2021 revenue • Alexion consolidated upon deal H1 2021 Q2 2021 closing on 21 July 2021 Total revenue $3,337m | +15% $1
Slide 16: Continuing response to COVID-19
Continuing response to COVID-19 Vaxzevria and AZD2816 Vaxzevria Global equitable supply AZD2816 (pandemic COVID-19 vaccine) (new variant vaccine) 92% >700m doses • Phase II/III trial launched effectiveness against hospitalisation released for global supply by the and death from the delta variant1 ex
Slide 17: Late-stage pipeline fuelling growth
Late-stage pipeline fuelling growth Milestones since the Q1’21 results update Medicine Indication (geography) Regulatory approval or Tagrisso adjuvant NSCLC1 (EGFRm2): approval (EU) other regulatory action Imfinzi ES-SCLC3: approval (CN) Lynparza prostate cancer (2nd line4) (BRCAm5): approval (CN) K
Slide 18: Late-stage pipeline events over the next 18 months
Late-stage pipeline events over the next 18 months News flow picks up; Phase III readouts increase into H2’21 H2 2021 H1 2022 H2 2022 - Regulatory Forxiga - CKD (EU, JP) Brilique - stroke (THALES) (EU, CN) roxadustat - anaemia in CKD (US) Forxiga - CKD (CN) decision anifrolumab - lupus (SLE) (US, EU
Slide 19: 2021 guidance updated
2021 guidance updated Alexion is now included Total revenue Core EPS increase by a low- faster growth to twenties percentage $5.05 to $5.40 Based on 1,418 million weighted average number of shares in issue during 2021 The guidance does not incorporate any revenue or profit impact from sales of the p
Slide 20: Alexion acquisition closed
Alexion acquisition closed Integration and synergies next Acquisition closed on 21 July 2021 Alexion delisted and the AstraZeneca share base expanded Strong strategic rationale - accelerate expansion into immunology and rare diseases - further-sustained, industry-leading double-digit revenue growth
Slide 21: Financial update
Astrazeneca What science can do
Slide 22: Reported profit and loss
Reported profit and loss H1 2021 change % total Q2 2021 change % total $m % revenue $m % revenue Total revenue 15,540 18 100 8,220 25 100 - product sales 15,302 19 98 8,045 27 98 - collaboration revenue 238 (12) 2 175 (23) 2 Gross margin 73.5% (6.1) pp4 72.8% (9.6) pp Operating expenses1 9,771 12 63
Slide 23: Core profit and loss
Core profit and loss H1 2021 change % total Q2 2021 change % total $m % revenue $m % revenue Total revenue 15,540 18 100 8,220 25 100 - product sales 15,302 19 98 8,045 27 98 - collaboration revenue 238 (12) 2 175 (23) 2 Gross margin 73.8% (6.4) pp 73.0% (9.9) pp Operating expenses 8,511 12 55 4,375
Slide 24: Analysis: core operating profit and net debt
Analysis: core operating profit and net debt Continued improvement in the operating profit mix Core operating profit mix improved Net debt reduced from improved $m Residual from product sales increased $bn EBITDA1, working capital reductions 2,750 2,500 0.2 2,250 2.5 4.6 0.6 2,000 0.5 0.9 1.3 12.1 1
Slide 25: Financial priorities
Financial priorities H1 2021 results underpinned the strategic journey Deleveraging/dividend growth Revenue growth • As cash flow improves, deleveraging and progressive dividend policy +9% growth in total revenue in • Unchanged priorities for capital H1 2021 excl. the pan- allocation demic COVID-19
Slide 26: Net debt position
Net debt position 30-Jun-21 31-Dec-20 $m $m Gross debt (27,495) (20,380) Cash & cash equivalents 15,567 7,832 Other investments 62 160 Net derivative financial instruments 145 278 Closing net debt1 (11,721) (12,110) 1. Net debt is a non-GAAP measure. The equivalent GAAP measure to net debt is ‘liabi
Slide 27: Liquidity, debt and rating summary
Liquidity, debt and rating summary • Strong liquidity at 30 June 2021 • Group cash and investments of $15.6bn • Undrawn $4.1bn committed bank facilities ($3.4bn of which mature in 2024) • Access to diverse sources of funding through US and European term debt and commercial paper programmes Utilisati
Slide 28: Smooth bond maturity profile with nine-year average life
Smooth bond maturity profile with nine-year average life Debt Maturity Profile at 30 June 2021 1 3,500 3,000 2,500 2,000 $m 1,500 1,000 500 0 2021 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
Slide 29: Summary
Astrazeneca What science can do
Slide 30: AstraZeneca in summary
AstraZeneca in summary Pipeline-driven transformation Global presence Strong pipeline Improving financials Balanced specialty and 22 Phase III medicines and Ten blockbuster medicines2,3 primary-care franchises1 significant lifecycle projects2 Returned to durable Leading emerging markets Advancing ea
Slide 31: Fixed-income investor update
Fixed-income investor update 29 July 2021
Slide 32: Appendix
AstraZeneca What science can do Appendix
Slide 33: Geographic growth
Geographic growth Strong performance in all major regions China 11% 21% of Total Revenue Europe 21% US 21% of 16% Japan 12% 31% of Total Revenue 9% of Total Revenue Total Revenue Other RoW 14% Emerging Markets 4% of (ex-China) Total Revenue 14% of 36% Total Revenue H1 2021 Regional Total Revenue as
Slide 34: Oncology: 'What's next'
Oncology: ‘What’s next’ Solid pipeline moving forward What’s next What’s now Phase III new medicines New Phase I/II new medicines, selected datopotamab deruxtecan lung cancer camizestrant breast cancer Phase III ✓ monalizumab capivasertib head & neck cancer breast, prostate cancer adavosertib cerala
Slide 35: BioPharmaceuticals: 'What's next'
BioPharmaceuticals: ‘What’s next’ Expanding pipeline, including immunology What’s next What’s now Phase I/II new medicines, selected Phase III new medicines MEDI3506 MEDI3506 roxadustat PT027 (IL331 mAb2) (IL33 mAb) anaemia in CKD asthma DKD3 COPD, asthma AD11, COVID-19 cotadutide AZD1402 Phase II P
Slide 36: Rare Diseases - 'What's next'
Rare Diseases - ‘What’s next’ Pipeline progress continued What’s next What’s now Phase III new medicines Phase I/II new medicines, selected ALXN1840 Wilson disease CAEL-101 AL-amyloidosis AG10 ALXN2040 ATTR3 PNH w/EVH4 ALXN1720 ALXN1830 (3rd-generation C5 inhibitor) (anti-FcRn) gMG gMG, WAIHA1 ALXN2
Slide 37: H1 2021 Reconciliation of Reported to Core Financial Measures
H1 2021 Reconciliation of Reported to Core Financial Measures Intangible Asset Diabetes Reported Restructuring Amortisation & Other1 Core2 Alliance Impairments $m $m $m $m $m $m Gross Profit 11,485 13 33 - - 11,531 Distribution Expense (202) - - - - (202) R&D Expense (3,542) 32 71 - - (3,439) SG&A E
Slide 38: Q2 2021 Reconciliation of Reported to Core Financial Measures
Q2 2021 Reconciliation of Reported to Core Financial Measures Intangible Asset Diabetes Reported Restructuring Amortisation & Other1 Core2 Alliance Impairments $m $m $m $m $m $m Gross Profit 6,029 6 16 - - 6,051 Distribution Expense (103) - - - - (103) R&D Expense (1,829) 19 8 - 1 (1,801) SG&A Expen
Slide 39: 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 40: Use of AstraZeneca conference call, webcast and presentation slides
Use of AstraZeneca conference call, webcast and presentation slides 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. Th