Astrazeneca Plc · LSE:AZN
Astrazeneca — FY2003 Earnings Presentation
25 slides from Astrazeneca's earnings presentation, 2004
Slide 1: Annual Results 2003
A Annual Results 2003 A Sir Tom McKillop Chief Executive Officer AstraZeneca 2003 Annual Results 1
Slide 2: Headline results FY 03
Headline results FY 03 2003 2002 Actual CER $m $m growth growth Sales 18,849 17,841 +6% - Operating profit 4,111 4,356 -6% -11% EPS (pre-excep) $1.78 $1.84 -3% -9% EPS $1.78 $1.64 +9% +3% Dividends $0.795 $0.70 Share repurchase $1,154m $1,190m A 2003 sales by Therapy Area CER % adj CER growth % grow
Slide 3: Strong sales performance offsets generic erosion
Strong sales performance offsets generic erosion $m reported 2000 1000 Others 0 Neuro- science Onc -1000 Resp CV -2000 Prilosec® Zestril® -3000 Nolvadex® GI -4000 A 2003 other highlights B Launch of Crestor® B First approval for Exanta® and regulatory submissions for key chronic indications B Seroqu
Slide 4: Successful portfolio transformation
Successful portfolio transformation Exanta® Crestor® 2001 2003 Iressa® Prilosec® Faslodex® Zestril® Symbicort® Base Plendil® Nexium® Expiry Nolvadex® Casodex® Arimidex® Growth Zomig® Seroquel® Atacand® $16.2 billion $18.8 billion +$2.6 billion A AstraZeneca strategy 1999 2004 2008+ Create A fast & e
Slide 5: Growth product performance
Growth product performance 9000 +45% 8000 7000 Crestor Faslodex 6000 Iressa Symbicort 5000 Nexium $m Arimidex 4000 Zomig Atacand 3000 Casodex Seroquel 2000 1000 0 FY 00 FY 01 FY 02 FY 03 A Relative share price performance 160 AstraZeneca Major international pharmaceutical companies* 150 140 130 120
Slide 6: AstraZeneca strategy
AstraZeneca strategy 1999 2004 2008+ Deliver Top-tier financial performance Full potential of growth portfolio Drive Platform for Productivity for competitive advantage growth Expand Next wave of development projects In-house discovery External collaboration Broaden Selective regional investment A A
Slide 7: 2004 priorities
AstraZeneca strategy 1999 2004 2008+ Deliver Top-tier financial performance Full potential of growth portfolio Drive Productivity for competitive Sustainable Platform for advantage growth for growth Expand long term Next wave of development projects In-house discovery External collaboration Broaden
Slide 8: Agenda
A Jon Symonds Chief Financial Officer Agenda B Headline results B Quarterly phasing of sales and profits B Margins B 2004 guidance B Growth product highlights A AstraZeneca 2003 Annual Results 8
Slide 9: Headline results FY 03 and 4Q 03
Headline results FY 03 2003 2002 Actual CER $m $m growth growth Sales 18,849 17,841 +6% - Operating profit 4,111 4,356 -6% -11% EPS (pre-excep) $1.78 $1.84 -3% -9% EPS $1.78 $1.64 +9% +3% Dividends $0.795 $0.70 Share repurchase $1,154m $1,190m A Headline results 4Q 03 2003 2002 Actual CER $m $m grow
Slide 10: Sales by quarter
Sales by quarter 5000 4800 4600 +4% +5% -8% $m 4400 2002 4200 2003 @ CER -4% 4000 3800 0 Q1 Q2 Q3 Q4 A R&D + SG&A up 5.8% CER 3000 +8% 2500 +7% +3% +4% 2000 $m 2002 1500 2003 @ at CER 1000 500 0 Q1 Q2 Q3 Q4 A AstraZeneca 2003 Annual Results 10
Slide 11: 2003 operating margin
2003 operating margin FY 02 FY 03 Delta: Delta: % % Actual CER Gross margin 74.7 76.3 +1.6 +1.0 B Merck +1.7% benefit B Underlying –0.7% R&D 17.2 18.3 +1.1 +0.7 SG&A 33.6 36.4 +2.8 +2.6 Op margin 24.4 21.8 -2.6 -2.6 A 2004 Outlook B Top-tier financial performance overriding objective • 2004 target E
Slide 12: US sales of Prilosec, Zestril and Nolvadex
US sales of Prilosec®, Zestril® and Nolvadex® $m 1200 1000 800 600 400 200 0 Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 A 2004 Outlook B Top-tier financial performance overriding objective • 2004 target EPS $2.00 - $2.15 B Sales • Mid-teen growth (including currency) B Costs and margins • Furth
Slide 13: Crestor
Growth product performance 9000 +45% 8000 7000 Crestor Faslodex 6000 Iressa Symbicort 5000 Nexium $m Arimidex 4000 Zomig Atacand 3000 Casodex Seroquel 2000 1000 0 FY 00 FY 01 FY 02 FY 03 A Crestor® B First launch in Feb 03 in the Netherlands B Crestor® profile • Lowers LDL-C by up to 63% across the
Slide 14: Crestor: early launch markets
Crestor®: early launch markets 9.0 Netherlands 7.7 8.2 8.0 7.9 7.0 6.4 6.9 6.1 5.7 5.6 Canada %TRx share 6.0 5.3 4.8 5.0 4.2 4.0 3.6 3.5 3.0 2.6 UK 2.3 2.9 2.1 2.6 1.9 2.0 1.4 2.4 1.0 1.7 1.9 1.0 0.5 1.4 1.0 0.2 0.6 0.0 0 Mth 1 Mth 2 Mth 3 Mth 4 Mth 5 Mth 6 Mth 7 Mth 8 Mth 9 Mth 10 Mth 11 Share of C
Slide 15: Crestor: US launch NRx
Crestor®: US launch NRx Number of NRx NRx share 40,000 5.0 4.5 35,000 4.0 30,000 3.5 25,000 3.0 20,000 2.5 2.0 15,000 1.5 10,000 1.0 5,000 0.5 0 0.0 26 k1 k3 k5 k7 k9 1 3 5 17 26 k1 k3 k5 k7 k9 1 3 5 7 k1 k1 k1 k1 k1 k1 k1 wk W W W W W wk k W W W W W W W W W W W W W Source: IMS Health, IMS NPA Plus
Slide 16: Crestor: US launch dynamic share
Crestor®: US launch dynamic share 50% Lipitor® Share of Dynamic Patient Opportunities 40% 30% 20% Zocor® Crestor® 13.7% 10% Lovastatin® Pravacho® All Others 0% k1 k3 k5 k7 k9 5 7 3 1 k1 k1 k1 k1 W W W W W W W W W Source: Verispan Instant VectorOne; Market = USC 32110 A Crestor®: US launch tracking B
Slide 17: Oncology products
US Crestor® NRx 4.6% Dynamic share 13.7% Initiations including samples 20%* *Source: Impact Rx A Oncology products B FY 03 sales up 8% to $2.7 billion (+26% ex. Nolvadex®) B Casodex® up 22% to $854 million • Early prostate cancer B Faslodex® sales $77 million • EU launches from 2Q 2004 B Iressa® FY
Slide 18: Arimidex: strong growth continues
Arimidex®: strong growth continues 50,000 45,000 Arimidex® 40,000 35,000 US$000’s 30,000 25,000 20,000 letrozole 15,000 10,000 exemestane 5,000 0 02 03 1 2 3 02 03 02 2 03 3 1 2 -0 -0 -0 r-0 r-0 -0 -0 n- n- g- g- b- b- ct ct ct ec ec Ap Ap Ju Ju Au Au Fe Fe O O O D D Source: IMS Health, IMS MIDAS Mo
Slide 19: Seroquel
Seroquel® B Full year sales $1,487 million; up 27% CER B The only leading (top 3) atypical antipsychotic to grow market share* *Source: IMS Health, IMS MIDAS 2003 A Seroquel®: US NRx in anti-psychotic market Market share 35% 30% Risperdal® 25% Zyprexa® Seroquel® 20% 15% 10% Abilify® 5% Geodon® 0% Ma
Slide 20: Nexium market share of PPIs global markets
Seroquel® B Full year sales $1,487 million; up 27% CER B The only leading (top 3) atypical antipsychotic to grow market share B Bipolar mania approved in US and EU *Source: IMS Health, IMS MIDAS 2003 A Nexium® market share of PPIs global markets 70.0 59.6 60.0 Market Share % (USD) PPIs 50.0 42.0 40.
Slide 21: Nexium US TRx PPI market share
Nexium® US TRx PPI market share 60% Total Prescription Market Share (PPI) 50% 40% 30% 20% 10% 0% Ja 0 Ja 1 Ja 2 03 M 0 01 02 03 M 0 M 1 M 2 M 3 Se 0 No 0 Se 1 No 1 Se 2 No 2 Se 3 No 3 0 1 2 3 -0 0 -0 0 -0 0 -0 l-0 0 l-0 0 l-0 0 l-0 0 0 -0 -0 -0 -0 v- v- v- v- n- n- n- n- p- p- p- p- ar ar ar ar ay a
Slide 22: Nexium: strong performance in a changing US market
Nexium®: strong performance in a changing US market 30 Nexium® 20 Prilosec® OTC launch 10 PPI TRx % ex omep growth 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr -10 ome- -20 prazole -30 -40 Source: IMS Health, IMS NPA Plus - Retail, Mail Order, and Long Term Care. Dec 2003 Data. A2B2 Proton Pump Inhibitors. Tot
Slide 23: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements In order to utilise the ‘Safe Harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995, AstraZeneca is providing the following cautionary statement. These presentations contain forward-looking statements with r
Slide 24: 4Q 03 operating margin
4Q 03 operating margin Delta: Delta: Q4 02 Q4 03 Actual CER % % Gross margin 74.4 78.3 +3.9 +3.6 R&D 18.2 21.4 +3.2 +2.6 SG&A 33.9 40.0 +6.1 +6.2 Operating margin 21.9 17.4 -4.5 -4.4 A Primary currency influences GBP SEK 3% 2% EUR 19% 19% 21% CAD 4% 12% 2% JPY 6% USD 4% 46% 39% Currency % of sales i
Slide 25: Primary currency movements for FY and Q4
Primary currency movements for FY 03 and Q4 03 GBP SEK +8% +17% EUR +8% +17% +16% CAD +16% +17% +11% JPY +11% +8% Currency Q4 2003 vs Q4 2002 currency movement – strengthening/ (weakening) against USD 2003 vs 2002 currency movement A Why it’s more complicated than this 1. Supply chain lag: It can ta