Slide 1: H1 2016 Results
Astrazeneca? What science can do H1 2016 Results 28 July 2016
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 1995, we are providing the following cautionary statement: This document contains certain forward-looking statements with respect to the operations,
Slide 3: Agenda
Agenda Overview Pascal Soriot Growth Platforms Luke Miels Finance Marc Dunoyer Pipeline Sean Bohen Closing Pascal Soriot 3
Slide 4: Q2 highlights: On track for the year; Oncology progressing very rapidly
Q2 highlights On track for the year;; Oncology progressing very rapidly Financials: On track with full-year guidance Total Revenue reflects patent expiries and phasing of Externalisation Revenue R&D investment stabilising and SG&A declining in line with commitments EPS impacted by FluMist inventory
Slide 5: Building a pure-play innovator in three therapy areas
Building a pure-play innovator in three therapy areas Focusing and slimming down portfolio to optimise resource allocation ü BACE inhibitor 1. Accessing ü Brodalumab Therapy Area (TA) ü Tralokinumab (AD1) capability / upside ü Durvalumab (haematology) Recurring • R&D investment revenue in main
Slide 6: Strong momentum in Immuno-Oncology
Strong momentum in Immuno-Oncology Unprecedented recruitment into IO clinical trials Urothelial bladder cancer Today Head and neck cancer DANUBE* Lung cancer HAWK First patient dosed CONDOR Last patient commenced dosing KESTREL* Data expected EAGLE* PACIFIC ADJUVANT* ARCTIC MYSTIC NEPTUNE* Q1 Q2 Q3
Slide 7: Growth Platforms
Growth Platforms Luke Miels EVP, Global Product & Portfolio Strategy, Global Medical Affairs and Corporate Affairs
Slide 8: Growth Platforms: Continuing progress
Growth Platforms: Continuing progress Now account for more than 60% of Total Revenue Q2 2016 % % Total H1 2016 % % Total $m change Revenue $m change Revenue Growth Platforms 3,744 8 67 7,179 7 61 Emerging Markets 1,448 9 - 2,913 7 - Respiratory 1,226 1 - 2,433 1 - Diabetes 645 13 - 1,223 18 -
Slide 9: Growth Platforms: Continuing progress
Growth Platforms: Continuing progress Now account for more than 60% of Total Revenue Q2 2016 % % Total H1 2016 % % Total $m change Revenue $m change Revenue Growth Platforms 3,744 8 67 7,179 7 61 Emerging Markets 1,448 9 - 2,913 7 - Respiratory 1,226 1 - 2,433 1 - Diabetes 645 13 - 1,223 18 -
Slide 10: Respiratory
Respiratory Emerging Markets offsetting performance in established regions Growth supported Symbicort now the leading inhaled US, Europe competitive by new medicines respiratory medicine globally Emerging Markets strength $m US -2% +1% • Overall solid volume growth offset by 2,500 45 +29% managed-
Slide 11: Brilinta: Ongoing strong growth
Brilinta Ongoing strong growth Consistent growth Brilinta now #1 US oral anti Global execution of across all markets platelet (total prescriptions) lifecycle management $m US 500 • New ACC/AHA guidelines (preferred 6% 4.80% over clopidogrel in ACS) supported +48% stronger growth 4% +106% 4.78% Europ
Slide 12: Diabetes: Global franchise growth
Diabetes Global franchise growth Farxiga now largest Farxiga global leader in Encouraging growth in all regions AstraZeneca Diabetes medicine SGLT2 class by volume $m US +9% 1,500 10% • Growing market with competition for market share +18% • Farxiga +82% from improved 19% -19% access 42% 1,000 +11%
Slide 13: Emerging Markets: Growth on track
Emerging Markets Growth on track Meeting the long-term target Broad-based performance Emerging Markets • Established portfolio benefiting from better diagnosis, +12% +12% 9% access and patient demographics/trends +8% 7% +4% • Balanced presence: Less than half of Product Sales in China. Brazil +13%
Slide 14: Japan: Performance recovering from April price cuts
Japan Performance recovering from April price cuts Returned to growth in Q2 despite Established medicines being Leading dynamic patient share biennial price cuts from April 2016 supported by New Oncology $m -3% • Improving market rank despite 1,000 39% competitive challenges;; now #6 33% 28% compan
Slide 15: New Oncology: Launches progressing well
New Oncology Launches progressing well Tagrisso Tagrisso patient numbers Lynparza (lung cancer) (ovarian cancer) $m Global Product Sales $m Global Product Sales 150 100 100 50 50 0 0 Q3 2015 Q4 2015 Q1 2016 Q2 2016 H1 2016 Q1 Q2 Q3 Q4 Q1 Q2 H1 H1 2015 2015 2015 2015 2016 2016 2015 2016 US Europe EM
Slide 16: Finance
Finance Marc Dunoyer Chief Financial Officer
Slide 17: Reported Profit & Loss
Reported Profit & Loss H1 2016 % Total Q2 2016 % Total % change % change $m Revenue $m Revenue Total Revenue 11,718 (3) 5,603 (10) Product Sales 11,034 (2) 94 5,469 (5) 98 Externalisation Revenue 684 (12) 6 134 (72) 2 Cost Of Sales (2,066) (11) 18 (1,062) (2) 19 Gross Profit 9,652 (1) 82 4,541 (12)
Slide 18: Core Profit & Loss
Core Profit & Loss Phasing of Externalisation Revenue;; cost discipline progressing H1 2016 % Total Q2 2016 % Total % change % change $m Revenue $m Revenue Total Revenue 11,718 (3) 5,603 (10) Product Sales 11,034 (2) 94 5,469 (5) 98 Externalisation Revenue 684 (12) 6 134 (72) 2 Cost Of Sales (1,980)
Slide 19: Continued progress and focus on cost discipline
Continued progress and focus on cost discipline Decline in Core R&D costs from Q4 2015 as committed $bn 1.5 • Consistent sequential declines in Core R&D costs • Investment reflected the number of potential medicines in pivotal trials 1.0 Q4 14 Q3 15 Q2 16 Core SG&A cost reduction being steadily deli
Slide 20: A year of challenges and opportunities
A year of challenges and opportunities $4.26 M&A Core EPS Crestor Dilution Growth Approvals Increasing Cost Currency Platforms Externalisation discipline Revenue and Other Operating Income FY 2016 GUIDANCE (CER) Low to mid single-digit Total Revenue percentage decline Low to mid single-digit Core
Slide 21: Capital-allocation priorities
Capital-allocation priorities Strong, Earnings- Investment in Progressive investment- accretive the business dividend policy grade credit opportunities rating 21
Slide 22: Debt profile and credit ratings
Debt profile and credit ratings $m 3,000 2,000 1,000 0 2016 2017 2018 2019 2020 2021 2023 2024 2025 2028 2031 2037 2042 2045 Overdraft + finance leases Commercial Paper GBP EUR USD – Moody’s: A3 Stable outlook – Standard & Poor’s: A- Stable outlook Foreign currency converted at June 2016 spot rates
Slide 23: Pipeline
Pipeline Sean Bohen EVP, Global Medicines Development & Chief Medical Officer
Slide 24: Q2 late-stage pipeline headlines
Q2 late-stage pipeline headlines Main therapy areas Cardiovascular & Respiratory & Autoimmunity Oncology Metabolic Diseases • benralizumab - severe asthma: • Brilinta - CV disease: Phase III • Faslodex - breast cancer: Positive Phase Two positive Phase III trials THEMIS trial fully recruited III
Slide 25: Benralizumab
Benralizumab Potential best-in-disease eosinophil-depleting antibody for severe asthma Exacerbation rate reduction Phase IIb trial ~10% of asthma cases • Reduction in eosinophils and are severe asthma exacerbation • Improvement in overall lung function ~40% of these cases • Simple, convenient dos
Slide 26: ASCO 2016 take-away messages
ASCO 2016 take-away messages Well-positioned with deep and broad pipeline Immuno-Oncology 1 Durvalumab: Strong data in 2nd line;; PDL1-positive bladder cancer Durva + treme: IO-IO combo supported by competitor data;; key newsflow from H1 2017 Lynparza and DNA Damage Response (DDR) 2 Lynparza: S
Slide 27: Immuno-Oncology: AstraZeneca's path to market
Immuno-Oncology: AstraZeneca’s path to market Key Phase III data coming soon;; H1 2017 key to success = durvalumab = durva + treme ✔ = fully recruited Bladder cancer DANUBE 1st-line bladder MYSTIC 1st line (PFS) ✔ MYSTIC 1st line (OS) ✔ Lung cancer ARCTIC 3rd line PD-L1 neg.✔ PACIFIC ✔ Stage III
Slide 28: Lynparza: Ovarian cancer
Lynparza: Ovarian cancer Early long-term survival in BRCA-mutated patients 100 BRCAm (n=136) Lynparza Placebo 90 (n=74) (n=62) • First PARP inhibitor to show Deaths, n (%) 47 (64) 48 (77) 80 long-term overall survival Median OS, months 34.9 30.2 data Overall survival (%) 70 HR=0.62 95% CI 0.41-0
Slide 29: DDR: Beyond Lynparza
DDR: Beyond Lynparza Advancing chemotherapy-free options, extending survival Launch AZD1775 (Wee1) monotherapy and combination Deliver next-generation DDR Expand Lynparza beyond medicines BRCA (AZD0156, AZD2811, AZD6738 and others) Establish Lynparza Launch Lynparza leadership as monotherapy combi
Slide 30: Pipeline newsflow in 2016 & 2017
Pipeline newsflow in 2016 & 2017 Realising potential of new medicines H2 2016 H1 2017 H2 2017 Regulatory decisions cediranib - ovarian cancer (EU) brodalumab - psoriasis (EU) - brodalumab - psoriasis (US) saxa/dapa - type-2 diabetes (US) ZS-9 - hyperkalaemia (EU) Regulatory submissions benra
Slide 31: Closing
Closing Pascal Soriot Chief Executive Officer
Slide 32: Pipeline-driven transformation on track
Pipeline-driven transformation on track • Financials on track - reconfirming guidance for the year • 14 new potential medicines in Phase III/under registration • Oncology pipeline progressing very rapidly, in particular IO-IO combination programmes • Strong newsflow over next 18 months 32
Slide 33: H1 2016 Results
Astrazeneca? What science can do H1 2016 Results 28 July 2016