Slide 1: Full-Year and Q4 2015 Results
Full-Year and Q4 2015 Results 4 F ebruary 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: Highlights
Highlights • Total Revenue $24.7bn, +1% – Growth Platforms: Now 57% of total1, +11% • Core EPS $4.26, +7% – Underpinned by Core SG&A cost reduction;; 2% in FY 2015 and 11% in Q4 • Pipeline progress continued: Two approvals and two regulatory submissions in Q4 • 2016 Guidance (CER) – Total Revenue: A
Slide 5: Strong Q4 pipeline newsflow
Strong Q4 pipeline newsflow On track to deliver 7-8 potential regulatory submissions for new medicines in 2015-2016 Regulatory approvals ü CAZ AVI (CEPH/BLI) • Zurampic (lesinurad) - gout (US) serious infections • Tagrisso - lung cancer (US, EU) ü cediranib (VEGFR) ovarian cancer (EU) Regulato
Slide 6: Leveraging top-line growth down the P&L
Leveraging top-line growth down the P&L FY 2015 % % Total Q4 2015 % $m change Revenue $m change Total Revenue 24,708 +1 100 6,399 +2 Of which Growth Platforms 14,003 +11 57 3,588 +11 Core EPS $4.26 +7 - $0.94 +22 Absolute values at actual exchange rates. Growth rates at CER 6
Slide 7: Growth Platforms
Growth Platforms Luke Miels EVP, Global Product & Portfolio Strategy, Global Medical Affairs and Corporate Affairs
Slide 8: Strong performance across all areas
Strong performance across all areas FY 2015 % % Total Q4 2015 % $m change Revenue $m change Growth Platforms 13,885 +10 56 3,531 +10 Respiratory 4,987 +7 - 1,289 +4 Brilinta/Brilique 619 +44 - 174 +43 Diabetes 2,224 +26 - 585 +24 Emerging Markets 5,822 +12 - 1,428 +10 Japan 2,020 +4 - 541 +8 Ab
Slide 9: New Oncology further strengthens Growth Platforms
New Oncology further strengthens Growth Platforms Lynparza, Iressa (US), Tagrisso and future medicines FY 2015 % % Total Q4 2015 % $m change Revenue $m change Growth Platforms 14,003 +11 57 3,588 +11 Respiratory 4,987 +7 - 1,289 +4 Brilinta/Brilique 619 +44 - 174 +43 Diabetes 2,224 +26 - 585 +24
Slide 10: Respiratory: Strength in Emerging Markets
Respiratory: Strength in Emerging Markets Growth supported Expected growth of active diagnosed Particular strength by n ew medicines prevalent asthma cases (2010-2026) in Emerging Markets $m $m -15% 140% US +11% +7% +4% China - urban 5,000 • Symbicort +1%, driven by higher +5% 0% 1,200 -15% 140%
Slide 11: Brilinta/Brilique: Growth in all markets
Brilinta/Brilique: Growth in all markets US oral anti-platelet class market Global execution o f Consistent g rowth across markets share n ew-to-brand p rescriptions lifecycle management $m $m US +44% 11.7% +43% 12% • Launch of post-MI indication 600 +33% +33% +91% 10% 500 +86% 150 8.3% EU • CHM
Slide 12: Diabetes: Global franchise growth continues
Diabetes: Global franchise growth continues Quarterly g rowth Absolute F Y 2015 g rowth o f Strong g rowth in all markets continues at >20% Diabetes franchise b y g eography $m $m $m +26% +24% US +15% 600 +36% +34% 185 • Benefit from full suite of US 2,000 +76% +84% medicines, led by Farxiga 450 1,5
Slide 13: Emerging Markets: Continued high growth
Emerging Markets: Continued high growth Growth continued at double digits Broad-based performance Emerging Markets +14% • Strong growth driven by established portfolio +12% +12% +10% +8% • Balanced presence: ~40% China, ~60% ex- +4% China (Brazil +16%, Russia +21%) 2012 2013 FY 2014 FY 2015 Q4 201
Slide 14: Japan: Continued solid growth
Japan: Continued solid growth Growth supported b y n ew Established p roducts to b e Leading d ynamic p atient share products augmented b y n ew o pportunities $m $m • Strong market share, Product Sales +4% 600 2000 +8% 39% growth from key medicines despite 33% 31% challenging external environment 1
Slide 15: New Oncology: Fundamental to future growth
New Oncology: Fundamental to future growth Lynparza Tagrisso (ovarian cancer) (lung cancer) 3,000 Global cumulative patient starts 2015 1000 US cumulative patient starts since launch 750 2,000 500 1,000 250 0 0 Jan Mar May Jul Sep Nov 11/20 11/27 12/4 12/11 12/18 12/25 12/31 • Product Sales $19M (la
Slide 16: Finance
Finance Marc Dunoyer Chief F inancial Officer
Slide 17: FY 2015: Finance highlights
FY 2015: Finance highlights • Total Revenue $24.7bn, +1% – Growth Platforms: Now 57% of total1, +11% • Core R&D investment u nderpinned b y – Core Gross Margin on Product Sales up by 1% point – Core SG&A cost reduction of 2% and 11% in Q4 – Externalisation Revenue ~$1b;; Other Operating Income ~$1.5
Slide 18: Profit & Loss: Leveraging top-line resilience
Profit & Loss Leveraging top-line resilience FY 2015 % % Total Q4 2015 % $m change Revenue $m change Total Revenue 24,708 +1 100 6,399 +2 Product Sales 23,641 (1) 96 6,207 - Externalisation Revenue 1,067 +140 4 192 +490 Core Cost of Sales (4,119) (6) 17 (1,209) +3 Core Gross Profit 20,589 +2 831 5
Slide 19: R&D investment underpinned by strong Core Gross Profit
R&D investment underpinned by strong Core Gross Profit Core Gross Profit & Margin $bn 81.3% 82.6% 82.0% 20 • Manufacturing efficiencies • Focus on supply chain 15 • Evolving mix of Product Sales from pipeline 10 2013 2014 2015 $bn Core R&D investment 6 • Increasing focus on main therapy areas 29% 28
Slide 20: Continued focus on Core SG&A reduction
Continued focus on Core SG&A reduction 2015 Core SG&A cost reduction delivered Core SG&A commitment renewed $bn FY Core SM&M SG&A 3.5 G&A (2)% • The Company is committed to materially % of Total Revenue FY Core reducing Core SG&A costs in FY 2016 based 2.5 SG&A ratio on constant exchange rates FY 20
Slide 21: A year of challenges and opportunities
A year of challenges and opportunities $4.26 Core EPS Crestor Dilution Currency Growth Eight Increasing Cost platforms regulatory Externalisation discipline decisions Revenue and Other Operating Incomes EMBEDDED IN GUIDANCE FY 2015 21
Slide 22: FY 2016 guidance & capital-allocation priorities
FY 2016 guidance & capital-allocation priorities FY 2016 guidance (CER) Low to mid single-digit Capital allocation priorities Total Revenue percentage decline Strong, Low to mid single-digit Progressive Earnings- Core EPS Investment in investment- dividend accretive percentage decline the busin
Slide 23: Pipeline
Pipeline Sean Bohen EVP, Global Medicines Development & Chief Medical Officer
Slide 24: 2015: Delivering the late-stage pipeline
2015: Delivering the late-stage pipeline brodalumab saxa/dapa Iressa submission (US, EU) submission (EU) approval (US) Tagrisso saxa/dapa - submission cediranib CAZ AVI Complete Response - CHMP (EU) submission (EU) submission (EU) Letter (US) - approval (US) A great year for patients and science
Slide 25: Q4 late-stage pipeline highlights
Q4 late-stage pipeline highlights Respiratory, Inflammation & Cardiovascular & Metabolic Oncology Autoimmunity (RIA) Disease (CVMD) • Symbicort - asthma: LABA safety • Brilique - prior MI: CHMP positive • Lynparza - prostate cancer: trial positive opinion (EU) Breakthrough T herapy (US) • Zuramp
Slide 26: 2016 key pipeline newsflow
2016 key pipeline newsflow Regulatory d ecisions Key regulatory submissions Key d ata readouts H1 2016 H1 2016 H1 2016 • benralizumab - severe asthma • Zurampic - gout (EU) • Brilinta/Brilique - stroke • Brilinta/Brilique - stroke • PT003 - COPD (US) • saxa/dapa - type-2 diabetes (US) • Lynpa
Slide 27: Sustainable R&D productivity: Pipeline value unlocked
Sustainable R&D productivity Publications Phase III / Registration NMEs Unlocking p ipeline value 552 15 13 Pipeline value 11 unlocked 397 Pipeline value unlocked 7 7 6 2010 2015 2015 2010 2010 2011 2012 2013 2014 2015 High-impact publications Registration Phase III 2015 2016 2017 2018 Medium-impa
Slide 28: Closing
Closing Pascal Soriot Chief Executive Officer
Slide 29: Highlights
Highlights • Total Revenue $24.7bn, +1% – Growth Platforms: Now 57% of total1, +11% • Core EPS $4.26, +7% – Underpinned by Core SG&A cost reduction;; 2% in FY 2015 and 11% in Q4 • Pipeline progress continued: Two approvals and two regulatory submissions in Q4 • 2016 Guidance (CER) – Total Revenue: A
Slide 30: On track to deliver long-term goals
On track to deliver long-term goals >$45bn1 in 2023 2012-2014 2015-2017 2018+ Building strong Delivering on return Sustainable delivery foundations to growth and growth 1. Target is at constant exchange rates (2013) which i s equivalent to ~$40bn at today’s exchange rates 30
Slide 31: Full-Year and Q4 2015 Results
Full-Year and Q4 2015 Results 4 F ebruary 2016