Slide 1: AstraZeneca 1Q 2014 Results
AstraZeneca 1Q 2014 Results 1
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding 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 presentation contains certain forward-looking statements
Slide 3: Agenda
Agenda Pascal Soriot First quarter 2014 overview Briggs Morrison Pipeline update Marc Dunoyer First quarter 2014 financial performance Pascal Soriot Closing remarks 3 3
Slide 4: 1Q 2014: Continued momentum
1Q 2014: Continued momentum Pascal Soriot, Chief Executive Officer
Slide 5: 1Q 2014: Highlights
1Q 2014: Highlights Returning to growth 1Q revenue up 3% at CER Good progression of the 5 growth platforms Farxiga launch encouraging in the US Achieving scientific leadership Olaparib Priority Review accepted by FDA AZD9291 granted Breakthrough Therapy designation by FDA 4 Phase III inv
Slide 6: 1Q 2014: Positive revenue growth
1Q 2014: Positive revenue growth 1Q 14 CER $m growth % Global Revenue 6,416 3 US 2,513 3 Europe 1,637 (4) Emerging Markets 1,421 11 China 584 22 Japan 537 13 Core EPS $1.17 (11) 6 6
Slide 7: Continued good progress in 1Q on our strategic priorities
Continued good progress in 1Q on our strategic priorities 1 2 3 Achieve Return Be a great place scientific to growth to work leadership 7 7
Slide 8: Growth platform revenue up 15% to $3.3bn
2 Growth platform revenue up 15% to $3.3bn Return to growth 1Q 14 CER $m growth % Growth drivers 3,297 15* Brilinta 99 94 Diabetes 347 106* Respiratory 1,271 12 Emerging Markets 1,421 11 Japan 537 13 8 *Diabetes growth rate includes 2 months of revenue in 1Q14 of assets owned by BMS in 1Q13 8
Slide 9: Brilinta: Continued good progress in Europe and International
2 Brilinta: Continued good progress in Return to growth Europe and International $m 120 100 EM 1Q Brilinta revenue up 94% to $99m $13m 80 EST ROW $6m Leadership position maintained in 60 EUR several European markets $52m 40 20 Awaiting DOJ resolution in the US US $28m 0 1Q 13 1Q 14 Note: Growt
Slide 10: Brilinta: Market share uptake in Europe
2 Brilinta: Market share uptake in Europe Return to growth OAP Volume Market Share by Channel OAP Volume Market Share by Channel – Total (Hospital + Retail) – Total (Hospital + Retail) BRILINTA BRILINTA 3.0% 8.0% 7.7% OAP DOT Mkt. Share 2.6% OAP DOT Mkt. Share 6.0% 2.0% 4.0% 1.0% 2.0% 0.0% 0.0% 0 2
Slide 11: Brilinta: US performance
2 Brilinta: US performance Return to growth Market Share TRx Share NBRx Share 8% 6.8% 7% 6% 6.1% 5% 4.6% 4% 3.7% 3% 2.1% 2% 1.8% 0.9% 1.0% 1% 0.8% 0.1% 0% Aug-11 Nov-11 Feb-12 May-12 Aug-12 Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 11 Source: IMS Health. Copyright 2014. All rights reserved 11
Slide 12: Diabetes: Growing the franchise
2 Diabetes: Growing the franchise Return to growth $m 350 Others $27m 300 Bydureon Revenue growing to $347m $80m 250 Farxiga US launch progressing well Byetta 200 $78m Onglyza US share 0.7% decline 1Q 150 100 Bydureon US share growing Onglyza $162m 50 BMS integration on track 0 1Q 13 1Q 14
Slide 13: Diabetes: Farxiga trialists new to SGLT-2 class
2 Diabetes: 2 out of 5 Farxiga trialists new to Return to growth SGLT-2 class 25,000 27% growth in 20,000 SGLT-2 Class over trend NRx (Absolute) 15,000 10,000 5,000 - Actual SGLT-2 NRx Trend SGLT-2 NRx (pre-Farxiga Launch) Actual Farxiga NRx New actual SGLT-2 NRx 13 Source: IMS Health. Copyright 201
Slide 14: Diabetes: Farxiga uptake exceeding recent NIAD launches
2 Diabetes: Farxiga uptake exceeding recent Return to growth NIAD* launches 6,000 5,000 NBRx (Absolute) 4,000 Farxiga 3,000 2,000 1,000 0 *NIAD: non-insulin anti-diabetics 14 Source: IMS Health. Copyright 2014. All rights reserved. 14
Slide 15: Respiratory: Symbicort up 13%
2 Respiratory: Symbicort up 13% Return to growth $m 1,000 EM 900 $83m 1Q Symbicort revenue up 13% to 800 EST ROW $928m $115m 700 600 500 EUR Symbicort new to combination market $386m share up 3.7 points in US 400 300 US 200 $344m Share growth in US, Japan, China 100 and many International mark
Slide 16: Respiratory: Strong Symbicort US share performance
2 Respiratory: Strong Symbicort US share Return to growth performance 2012 Share 2013 Share +3.7 Growth Growth 37.6% 38% 33.9% +1.7 +5.8 +3.5 33% 29.8% 28.1% 28% 26.3% +2.2 +3.9 22.4% 23% 18% NTC Share TRx Share 16 Source: IMS Health. Copyright 2014. All rights reserved. 16
Slide 17: Emerging Markets: AstraZeneca continues to outpace the market in China
2 Emerging Markets: AstraZeneca continues Return to growth to outpace the market in China MAT Value Hospital Market 26% 24% 22% 20% 18% 16% 14% 12% 10% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 14-Jan 14-Feb Total China MNC AZ *MNC: multi national companies 17 Source: IMS Health March 2014. Co
Slide 18: Japan: Continued strong performance, Nexium #1 PPI in value
2 Japan: Continued strong performance, Return to growth Nexium #1 PPI in value 40% 35% Nexium 1Q Growth +13% CER 28.4 30% 25% PPI Value MS In-market growth +15% 20% 15% Continued share growth for Crestor, 10% Symbicort & Nexium 5% 0% Forxiga approved in March 18 Source: IMS Health. Copyright
Slide 19: 1Q 2014: Pipeline update
1Q 2014: Pipeline update Briggs Morrison, Executive Vice President Global Medicines Development 19
Slide 20: 19 candidates for NME registration trial starts in 2014-15
1 19 candidates for NME registration trial Achieve scientific starts in 2014-15 leadership We anticipate 4-5 NME Phase lll starts in 2014 2014 2015 AZD9291 AZD4547 ATM AVI NSCLC gastric cancer serious infections MEDI4736 MEDI-573 RDEA3170 solid tumours metastatic breast cancer gout tralokinumab MEDI
Slide 21: 2014: Continued momentum in late stage pipeline
1 2014: Continued momentum in late stage Achieve scientific pipeline leadership AZD3293 (BACE) Alzheimer’s disease AZD1722 (NHE3) ESRD anifrolumab (IFN-αR) SLE sifalimumab (IFN-α) SLE NMEs tralokinumab (IL-13) mavrilimumab (GMCSFR) severe asthma rheumatoid arthritis AZD9291 (EGFR) AZD5069 (CXCR2) 2L
Slide 22: 2014: Continued momentum in late stage pipeline
1 2014: Continued momentum in late stage Achieve scientific pipeline leadership AZD3293 (BACE) Alzheimer’s disease AZD1722 (NHE3) ESRD anifrolumab (IFN-αR) SLE sifalimumab (IFN-α) SLE NMEs tralokinumab (IL-13) mavrilimumab (GMCSFR) severe asthma rheumatoid arthritis AZD9291 (EGFR) AZD5069 (CXCR2) 2L
Slide 23: AZD9291: Achieving FDA Breakthrough Designation
1 AZD9291: Achieving FDA Breakthrough Achieve scientific Designation leadership Best % change from baseline in target lesions, n=34 Source: Ransom M, et al. Data presented at a mini-oral session at the 15th World Conference of Lung Cancer, Sydney, Australia, 27-30 October 2013 23 Further data update
Slide 24: 1Q 2014: Continued momentum in late stage pipeline
1 1Q 2014: Continued momentum in late stage Achieve scientific pipeline leadership Regulatory milestones Compound Indication Milestone Farxiga/Forxiga type 2 diabetes US, JP approval Bydureon Dual Chamber Pen type 2 diabetes US approval Xigduo type 2 diabetes EU approval Myalept generalised lipodyst
Slide 25: 2014: Key data readouts
1 2014: Key data readouts Achieve scientific leadership Compound Indication Milestone Quarter 2 brodalumab psoriasis Ph III topline results saxagliptin/dapagliflozin type 2 diabetes Ph III (ADA1) MEDI4736 solid tumours Ph I (ASCO2) AZD9291 NSCLC Ph I (ASCO2) Quarter 3 lesinurad gout Ph III topline r
Slide 26: 2014: Regulatory milestones
1 2014: Regulatory milestones Achieve scientific leadership Compound Indication Milestone Quarter 2 Epanova hypertriglyceridaemia US approval (PDUFA 5 May) Bydureon Dual Chamber Pen type 2 diabetes JP filing Quarter 3 Iressa EGFRm NSCLC US filing naloxegol OIC US approval (PDUFA 16 Sep) Brilinta ACS
Slide 27: 2Q 2014: Data readouts at congresses
1 2Q 2014: Data readouts at congresses Achieve scientific leadership ATS – San Diego, May 16-20 benralizumab (IL-5R) Ph II asthma and COPD tralokinumab (IL-13) Ph II asthma MEDI9929 (TSLP) Ph I asthma Analyst meeting: Tuesday May 20, 2014 ASCO – Chicago, May 30-June 3 AZD9291 Ph I NSCLC
Slide 28: Potential NME & LCM submissions 2014-16
1 Potential NME & LCM submissions 2014-16 Achieve scientific leadership PT003 LABA/LAMA COPD PT001 LAMA COPD Oncology olaparib US brodalumab* benralizumab PARP PSR BRCAm ovarian cancer IL-17R psoriasis IL-5R asthma RIA lesinurad metreleptin EU AZD9291 SURI gout lipodystrophy EGFR T790M NSCLC CVMD CA
Slide 29: 1Q 2014: Financial performance
1Q 2014: Financial performance Marc Dunoyer, Chief Financial Officer 29
Slide 30: Headline results: 1Q 2014
Headline results: 1Q 2014 1Q 1Q CER 2014 2013 growth % Revenue 6,416 6,385 3 Core Operating Profit 1,952 2,324 (11) Core EPS $1.17 $1.41 (11) $1.17 $1.41 (11) 30 30
Slide 31: Revenue Fx impact -2.1% in 1Q
Revenue Fx impact -2.1% in 1Q $m 6,700 +0.7% -1.9% 6,600 +43 -122 +0 6,500 6,554 -0.9% -59 6,553.00 6,553.00 6,400 6,416 6,416.00 6,300 1Q CER US Europe Est. RoW Emerging Markets 1Q Reported 31 31
Slide 32: Core margin: 1Q 2014
Core margin: 1Q 2014 CER % $m growth % sales Revenue 6,416 3 Core Gross Margin 5,223 2 81.4 Distribution (72) (5) 1.1 Core SG&A (2,317) 14 36.1 Core R&D (1,098) 13 17.1 Core Other Income 216 29 3.3 Core Operating Profit 1,952 (11) 30.4 32 32
Slide 33: Core SG&A and R&D trends
Core SG&A and R&D trends 3,000 +14% 2,500 +14% -2% 2,000 1Q 12 1Q 13 4Q 13 1Q 14 $ (millions) 1,500 +2% +13% 1,000 -7% 1Q 12 1Q 13 4Q 13 1Q 14 500 0 SG&A R&D 33 33
Slide 34: Cash generation: 1Q 2014
Cash generation: 1Q 2014 1Q 2014 1Q 2013 $m $m EBITDA 1,548 2,048 Movement in working capital 30 290 Tax & interest paid (598) (527) Other non-cash movements 207 387 Net cash from operating activities 1,187 2,198 34 34
Slide 35: Cash application: 1Q 2014
Cash application: 1Q 2014 1Q 2014 $m Net cash from operating activities 1,187 Net capex (671) Dividends/share issues (2,228) Acquisitions and business development (3,068) Other movements (92) Net cash flow after distributions (4,872) 35 35
Slide 36: Guidance for 2014 (maintained)
Guidance for 2014 (maintained) 2014 Revenue (CER) Low-to-mid single digit decline 2014 Core EPS (CER) Percentage decline in the teens Dividend Progressive dividend policy maintained Above guidance assumes US Nexium generic end of May 2014 36 36
Slide 37: 1Q 2014: Closing remarks
1Q 2014: Closing remarks Pascal Soriot, Chief Executive Officer 37
Slide 38: Closing remarks
Closing remarks 1Q revenue growth driven by all 5 growth platforms Strong momentum in late stage Pipeline Rich news flow expected in 2014 38 38
Slide 39: AstraZeneca 1Q 2014 Results
AstraZeneca 1Q 2014 Results 39