Slide 1: 1Q Results 2013
1Q Results 2013 \> eoauazeusy
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements 2 2
Slide 3: 1Q Results 2013 - Simon Lowth, Chief Financial Officer
1Q Results 2013 Simon Lowth, Chief Financial Officer
Slide 4: 3 clear priorities
3 clear priorities Achieve 1 2 3 Return Be a great scientific to growth place to work leadership Business Development 5 Growth platforms Simplify/Productivity/Culture - Moderna Therapeutics - Brilinta - Fast start to Phase 4 - Karolinska Institutet - Diabetes franchise restructuring programme - Alph
Slide 5: Headline results 1Q 2013
Headline results 1Q 2013 2013 2012 Actual CER $m $m growth growth Revenue 6,385 7,349 -13% -12% Core Operating Profit 2,324 3,106 -25% -21% Core EPS $1.41 $1.87 -25% -21% Restructuring ($0.34) ($0.44) Intangible amortisation ($0.26) ($0.13) Intangible impairments - ($0.03) Legal provisions/other - -
Slide 6: Regional revenue performance 1Q 2013
Regional revenue performance 1Q 2013 2013 CER CER $m growth $m Global Revenue 6,385 -12% (891) US 2,445 -16% (475) Seroquel IR (535) Ex-Seroquel IR +3% Seroquel IR, Seroquel XR, Atacand & Europe 1,660 -16% (311) Nexium LOE Established ROW 950 -17% (212) Japan 549 +5% 27 Crestor , Nexium & Symbicort
Slide 7: Brand revenue performance 1Q 2013
Brand revenue performance 1Q 2013 2013 CER CER $m growth $m Global Revenue 6,385 -12% (891) Crestor 1,323 -11% (162) Canada (161); ex-Canada unchanged Symbicort 826 +14% 104 Iressa 168 +20% 29 Onglyza 90 +27% 19 Byetta/Bydureon 69 n/m 69 Brilinta/Brilique 51 n/m 43 Seroquel IR 127 -82% (622) Atacand
Slide 8: Brilinta/Brilique
Brilinta/Brilique Q1 2013 Sales: $51m $m 60 • Brilinta is now launched in 84 countries EM • US $4m 50 - Performance improvement continues EST ROW $2m 40 EUR 30 $30m 20 10 US $15m 0 Q1 12 Q1 13 US EUR EST ROW EM 8 8 8
Slide 9: Brilinta US: Performance improvement continues
Brilinta US: Performance improvement continues New to Brand Rx’s (4 week rolling average) Source: IMS Health NPA weekly: IMS Health NPA Market Dynamics (Retail only) 9 9
Slide 10: Brilique: ROW performance
Brilique: ROW performance Germany Italy OAP Retail Dynamic Market Share OAP Volume Market Share – Hospital & Retail UK Australia OAP Volume Market Share – Hospital & Retail OAP Volume Market Share – Hospital & Retail Market Share (DOT) Market Share (DOT) 10 10 10
Slide 11: Onglyza Franchise
Onglyza Franchise Q1 2013 Global Alliance Revenue: US $90m +27% CER • DPP4 market TRx’s +10% vs Q1 2012; $m Onglyza franchise +9% 100 EM • Onglyza franchise share of TRx’s was $8m +100% 90 EST ROW 16.1% in March, down 170 basis points vs 80 $5m +150% December 2012 EUR 70 $13m +18% • Decline in prefe
Slide 12: Diabetes franchise
Diabetes franchise Byetta/Bydureon • Q1 includes $69m share of alliance revenue • New to brand volumes for Bydureon up 15% since Alliance re-launch in October 2012; +1.5 points in NBRx share • Alliance assumes responsibility for exenatide ROW from April 2013 Forxiga • Q1 revenue of $1m reflects earl
Slide 13: Symbicort
Symbicort Q1 2013 Sales: $826m +14% CER $m EM 800 $72m +9% US EST ROW • Total prescriptions for Symbicort were +15% 700 $83m +21% compared to +3% in the market for fixed 600 combination products 500 • TRx share reached 23.3% in March 2013, +1 EUR percentage point since Dec 2012 400 $384m +4% • New p
Slide 14: Crestor
Crestor Q1 2013 Sales: $1,323m -11% CER US $m • TRx’s -7% 1,400 EM • Excluding prior year Medicare coverage $156m +16% gap adjustments, realised prices slightly 1,200 EST ROW lower $199m -41% 1,000 ROW EUR • ROW sales $671m; -16% 800 $316m -2% - Adj. for LOE in Canada: Q1 +5% 600 - No. 1 statin in J
Slide 15: Core margin: 1Q 2013
Core margin: 1Q 2013 CER Delta vs $m % % sales PY CER Revenue 6,385 -12% - Core Gross Margin 5,249 -11% 82.2 +90 bps Distribution (77) +1% 1.2 -20 bps Core SG&A (2,055) -2% 32.2 -320 bps Core Other Income 170 -36% 2.7 -100 bps Core Pre-R&D Profit 3,287 -18% 51.5 -350 bps Core R&D (963) -7% 15.1 -90
Slide 16: Phase 4 restructuring programme
Phase 4 restructuring programme Total cost Q1 13 $m $m R&D 1,380 291 SG&A 790 240 COGS 130 12 Total 2,300* 543 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 cash costs are ~$1,700m 1
Slide 17: 1Q 2013: Cash performance
1Q 2013: Cash performance Cash generated from operating activities $2.2 billion (1Q 2012 $1.5 billion) - Lower tax and interest payments partially offset lower operating profit - Pension contribution drove higher outflows in 1Q 2012 Shareholder distributions - Payment of second interim dividend from
Slide 18: Guidance (Core basis)
Guidance (Core basis) Revenue (CER) Mid to High-single digit decline Core Operating Costs (CER) Hold to a slight increase vs 2012 (R&D + SG&A) Core other income < $600 million Reported tax rate Around 23 percent Core EPS (CER) Decline significantly > than revenue decline 18 18
Slide 19: 1Q Results 2013
1Q Results 2013 \> eoauazeusy