Slide 1: Fixed-Income Investor Update June 2017
Fixed - Income Investor Update June 2017
Slide 2: Forward-looking statements cautionary statement
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 document contains certain forward - looking statements with respect to the operations, performance and financial
Slide 3: Registration statement and non-GAAP measures notice
We have filed a registration statement (including a prospectus supplement and accompanying prospectus) with the Securities and Exchange Commission for the offering to which this presentation relates. Before you invest, you should also read the prospectus in that registration statement, the prelimina
Slide 4: AstraZeneca at a glance
A global biopharmaceutical business delivering medicines to patients through innovative science and excellence in development and commercialisation 4 AstraZeneca at a glance US Emerging Markets Europe Established Rest of World 2016: $7,365m Product Sales 2015: $ 9,474m 2014: $ 10,120m 2016: $5,794m
Slide 5: Transaction highlights & key messages
Transaction highlights & key messages
Slide 6: Transaction highlights
• Issuer: AstraZeneca PLC • Type of offering: SEC Registered • Ranking: Senior Unsecured • Size: $ Benchmark • Tenor: 5 - year, 10 - year • Ratings: A3 (stable) / A - (negative) • Use of Proceeds: General Corporate Purposes, which may include the refinancing of existing indebtedness • Listing: New Y
Slide 7: Key messages
7 Key messages A Strategy For Growth - b ased on what science can do An Attractive Pipeline - on track in a busy period of newsflow Growth Platforms - underpinned by Emerging Markets Financial Policies - supporting capital - allocation priorities
Slide 8: AstraZeneca Strategy update
AstraZeneca What science can do Strategy update
Slide 9: Strategic priorities
9 Strategic priorities Achieve scientific leadership 1 Return to growth 2 Be a great place to work 3
Slide 10: Three therapy areas focused strategy
Three therapy areas 10 Focused strategy Respiratory Cardiovascular & Metabolic Diseases Oncology Commitment to further focus the portfolio
Slide 11: Late-stage pipeline by phase
Phase I Phase II Phase III 32 New Molecular Entities 25 New Molecular Entities 9 New Molecular Entities Small molecule Small molecule Small molecule Large molecule Large molecule Large molecule Applications Under Review 3 New Molecular Entities Large molecule Small molecule AZD0156 ATM solid tumours
Slide 12: Supporting on-going pipeline-driven transformation
Supporting on - going pipeline - driven transformation Key 2017 news flow from late - stage pipeline 2017: Encouraging year - to - date news flow for patients and company Siliq Psoriasis Approval (US) Qtern Type - 2 diabetes Approval (US) tralokinumab Severe, uncontrolled asthma Phase III negative T
Slide 13: Late-stage pipeline news flow 2017 & 2018
Unlocking and realising potential of new medicine 13 Late - stage pipeline news flow 2017 & 2018 1. CVOT = Cardiovascular Outcomes Trial. 2. AstraZeneca - sponsored trials. Status as of 27 April 2017. Q2 2017 / mid - 2017 H2 2017 2018 Regulatory decision Faslodex - breast cancer (1L ) (JP) durvaluma
Slide 14: AstraZeneca in non-small cell lung cancer
Patients with EGFR - mutated tumours ~15 - 20% of patients, but double in Asia Iressa EGFRm Tagrisso ADAURA (2021/2022) Tagrisso FLAURA (H2 2017) Tagrisso T790M Patients with no EGFR - or ALK - mutated tumours ~75 - 80% of patients PEARL (2020) NEPTUNE (2018) = Imfinzi + treme ADJUVANT (2020) PACIFI
Slide 15: Growth Platforms: Good start to 2017
Respiratory stable; growth in all other areas 15 Growth Platforms: Good start to 2017 1. New CVMD comprises Brilinta and Diabetes. 2. New Oncology comprises Lynparza , Iressa (US) and Tagrisso . 3. Total Product Sales for Growth Platforms adjusted to remove duplication on a medicine and regional bas
Slide 16: Geographic platform for growth: Emerging Markets
Geographic platform for growth 16 Emerging Markets US 35% of Product Sales Europe 24% of Product Sales Rest of World Established (ex - Japan) 4% of Product Sales Japan 10% of Product Sales Emerging Markets (ex - China) 15% of Product Sales China 12% of Product Sales 2016 Product Sales as reported.
Slide 17: Great place to work
Great place to work Headquarters Gothenburg, Sweden Gaithersburg, US Cambridge, UK Strategic R&D Centre Strategic R&D Centre 17
Slide 18: Realising company vision: Great place to work
Realising company vision Great place to work 1. A passion for people development 6. Access to medicines & social responsibility 5. Environmental sustainability 4. Energising sites and workplaces 3. Flawless technology and ways of working 2. Strong, supportive, leadership at all levels Values and Pur
Slide 19: AstraZeneca Financial update
AstraZeneca? What science can do Financial update
Slide 20: Reported profit & loss
Q1 2017 $m % change % Total Revenue Total Revenue 5,405 (10) 100 - Product Sales 4,843 (12) 90 - Externalisation Revenue 562 3 10 Gross Profit 4,511 (12) - Distribution Expenses (77) 6 1 R&D Expenses (1,453) 2 27 SG&A Expenses (2,300) (8) 43 Other Operating Income 236 n/m 4 Operating Profit 917 (23)
Slide 21: Core profit & loss
Q1 2017 $m % change % Total Revenue Gross Profit 4,578 (11) 100 Distribution Expenses (77) 6 1 R&D Expenses (1,338) (3) 25 SG&A Expenses (1,829) (12) 34 Other Operating Income 333 n/m 6 Operating Profit 1,667 (2) 31 Net Finance Expense (174) 15 3 Taxation (258) 5 EPS $0.99 (4) Core profit & loss Abs
Slide 22: Continued progress and focus on cost discipline
0.0 0.5 1.0 1.5 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 0.0 1.0 2.0 3.0 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 • Reduction in Core R&D costs • Q1 2017: Down by 3% • FY 2017: Core R&D costs are expected to be broadly in line
Slide 23: FY 2017 guidance and capital-allocation priorities
FY 2017 guidance and capital - allocation priorities Guidance Investment in the business Progressive dividend policy Strong, investment - grade credit rating Immediately earnings - accretive, value - enhancing opportunities Total Revenue 3 Low to mid single - digit percentage decline Core EPS 1,2 Lo
Slide 24: Net debt position
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Slide 25: Debt and credit ratings
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Slide 26: Prudent treasury risk-management policies
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Slide 27: AstraZeneca
AstraZeneca? What science can do
Slide 28: Key messages
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Slide 29: Appendix – Q1 2017 Reconciliation of Core to Reported performance
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Slide 30: Fixed-Income
Fixed - Income Investor Update June 2017