AstraZeneca PLC · LSE:AZN
AstraZeneca — Debt Investor Presentation (February 2021)
40 slides from AstraZeneca's debt investor presentation, Feb 11, 2021
Slide 1: Fixed-income investor update
Fixed-income investor update 11 February 2021
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 of 1995, AstraZeneca (hereafter ‘the Group’) provides the following cautionary statement: this document contains certain forward-looking statements wit
Slide 3: Forward-looking statements, proposed acquisition of Alexion
Forward-looking statements, proposed acquisition of Alexion Important additional information In connection with the proposed transaction, the Group intends to file a registration statement on Form F-4 with the SEC, which will include a document that serves as a prospectus of the Group and a proxy st
Slide 4: Disclaimer, Non-GAAP measures
Disclaimer This presentation is neither an offer to sell nor a solicitation of an offer to buy any securities and shall not constitute an offer, solicitation, or sale in any jurisdiction in which an offer, solicitation, or sale is unlawful. Non-GAAP measures This presentation contains financial meas
Slide 5: Key messages
Key messages Continuing double-digit revenue growth trajectory Increase in operating leverage and cash generation Maintaining innovation and pipeline delivery Financial priorities on track 5
Slide 6: Business update
Astrazeneca What science can do Business update
Slide 7: FY 2020: strong and resilient double-digit performance
FY 2020: strong and resilient double-digit performance Key highlights Total revenue up by 10%, continuing double-digit trajectory underpinned by focused R&D and SG&A investment Revenue growth: new medicines1 +33%. Oncology +24% and New CVRM2 +9%. Respiratory & Immunology stable and Emerging markets
Slide 8: FY 2020: total revenue +10%
FY 2020: total revenue +10% New medicines continued to grow Significant revenue recovery including New medicines the an anticipated Lynparza sales milestone major contributor $m 1,200 22% 14% 18% 17% +$3.5bn 1,000 incremental revenue of the new Total revenue growth, per cent 11% 11% 10% medicines co
Slide 9: FY 2020: diversified and double-digit growth
FY 2020: diversified and double-digit growth Oncology, US, Emerging markets drove performance Growth across Growth across therapy areas geographies Q4 2020 growth ratio FY 2020 growth ratio Q4 2020 growth ratio FY 2020 growth ratio $m % % $m % % $m % % $m % % Total revenue 7,410 10 100 26,617 10 100
Slide 10: Tagrisso and Imfinzi
Tagrisso and Imfinzi Global growth boosted by Europe and EMs Tagrisso: 36% growth to $4.3bn Imfinzi: 39% growth to $2.0bn 1 Approvals 674 (NSCLC5), 514 (ES-SCLC6) $m Approvals 5 (adjuvant), 87 (1st line) and 89 (2nd line) $m 1,200 • US +24% (36% of total) 600 • US +14% (58% of total) Growth despite
Slide 11: Lynparza
Lynparza The globally-leading PARP1 inhibitor $m Lynparza Approvals 78 (ovarian), 76 (breast), 55 Lynparza $m 49% sales growth to $1.8bn (pancreatic) and 49 (prostate cancer) collaboration revenue 600 1,000 • US +40% (49% of total) 500 1st-line OC2 growth supported 800 by new use in prostate cancer
Slide 12: Calquence and Enhertu
Calquence and Enhertu Calquence accelerated; Enhertu launch continued Calquence Enhertu $m Approvals: 51 (CLL1) and 23 countries (MCL2) $m Approvals: US, EU, Japan (mBC5); US, Japan (mGC6) 200 • Global $522m; US $511m 40 • Global $96m; US $93m $200m in-market US sales • US CLL by Daiichi Sankyo; no.
Slide 13: BioPharmaceuticals: New CVRM
BioPharmaceuticals: New CVRM Farxiga inflection point; strong progress Diabetes/HF: 9% growth driven by Farxiga, continued Brilinta: growth $m the fastest-growing SGLT21 in the fastest-growing T2D2 class3 $m impacted by COVID-19 1,000 • Farxiga +30% • Brilinta +2%: COVID-19 impact in all regions and
Slide 14: BioPharmaceuticals: Respiratory & Immunology
BioPharmaceuticals: Respiratory & Immunology Solid growth excluding the COVID-19 impact to Pulmicort Respiratory Encouraging growth everywhere $m stable1 except EMs; Pulmicort impact in China 2,000 • US +18% • EMs -18% Symbicort (+23%); market, volume Pulmicort ($798m, -33%) lower and price growth.
Slide 15: Emerging markets
Emerging markets Diverse and solid growth Emerging markets +10% Performance driven by new medicines +59% $m EMs ex China +9%; China +11% (33% of total revenue; $1.1bn1 incrementally) 2,500 • Oncology +36%: Tagrisso ($1.2bn); March 2021 NRDL inclusion 2,000 New CVRM +31%: Forxiga (+55%); Brilinta (+4
Slide 16: Continuing response to COVID-19
Continuing response to COVID-19 Advancing vaccine, antibody, other options COVID-19 Vaccine AZD7442 long-acting Other COVID AstraZeneca antibody (LAAB) combo efforts continue • Late-stage trials recruited; >55k • PROVENT and STORMCHASER • Farxiga participants Phase III trial in pre- and post- DARE-1
Slide 17: Strong progress in the late-stage pipeline
Strong progress in the late-stage pipeline Important milestones since the last results update Medicine Indication (geography) Regulatory Tagrisso adjuvant NSCLC1 (EGFRm2) (US) approvals Imfinzi new Q4W3 dosing (US, EU) Lynparza ovarian cancer (1st line4, HRD+5) (PAOLA-1) (EU, JP) prostate cancer (2n
Slide 18: Late-stage pipeline events in the 2021-2022 timeframe
Late-stage pipeline events in the 2021-2022 timeframe Busy news flow continues; Phase III readouts increase into 2021 H1 2021 H2 2021 2022 Regulatory Tagrisso - adjuvant NSCLC (EGFRm) (CN) Tagrisso - adjuvant NSCLC (EGFRm) (EU) Imfinzi - ES-SCLC (CN) Lynparza - breast cancer (BRCAm) (CN) Lynparza -
Slide 19: 2021 guidance
2021 guidance Total revenue Core EPS increase by a low faster growth to teens percentage $4.75 to $5.00 Guidance is at CER. The guidance does not incorporate any revenue or profit impact from sales of COVID-19 Vaccine AstraZeneca. The Company intends to report these sales separately from the next qu
Slide 20: Accelerating the expansion into immunology
Accelerating the expansion into immunology Alexion: immune-mediated rare disease global leader Compelling scientific complementarity and synergy Combination of two science- and patient-centric organisations Further-sustained, industry-leading double-digit revenue growth Improved profitability and st
Slide 21: 2021 and beyond: the acquisition of Alexion
2021 and beyond: the acquisition of Alexion Accelerating the strategic and financial development • Compelling scientific complementarity and synergy • Increased immunology presence: complement system platform, currently applied in rare diseases • Pipeline boosted with 11 molecules across 20+ program
Slide 22: Financial update
Astrazeneca What science can do
Slide 23: Reported profit and loss
Reported profit and loss FY 2020 change % total Q4 2020 change % total $m % revenue $m % revenue Total revenue 26,617 10 100 7,410 10 100 - product sales 25,890 11 97 7,011 11 95 - collaboration revenue 727 (11) 3 399 (4) 5 Gross margin 79.5% 0.5 pp4 78.2% 1.1 pp Operating expenses1 17,684 (2) 66 5,
Slide 24: Core profit and loss
Core profit and loss FY 2020 change % total Q4 2020 change % total $m % revenue $m % revenue Total revenue 26,617 10 100 7,410 10 100 - product sales 25,890 11 97 7,011 11 95 - collaboration revenue 727 (11) 3 399 (4) 5 Gross margin 80.0% 0.3 pp 78.6% 2.0 pp Operating expenses 15,633 6 59 4,654 8 63
Slide 25: Analysis: core operating profit and net debt
Analysis: core operating profit and net debt Increasing operating leverage and cash flow progress Core operating profit Net debt broadly stable reflecting $m Sources of profit continued to progress $bn continued improvement in EBITDA 2,250 2,000 0.3 1,750 3.6 8.3 1.2 1,500 1.0 11.9 12.1 2.9 0.4 1,25
Slide 26: Financial priorities
Financial priorities FY 2020 results underpinned the strategic journey Deleveraging/dividend growth Revenue growth • As cash flow improves, deleveraging and progressive dividend policy +10% • Unchanged priorities for capital growth in total allocation revenue in 2020 Operating leverage • 59% ratio o
Slide 27: Net debt position
Net debt position 31-Dec-20 31-Dec-19 $m $m Gross debt (20,380) (18,227) Cash & cash equivalents 7,832 5,369 Other investments 160 911 Net derivative financial instruments 278 43 Closing net debt1 (12,110) (11,904) 1. Net debt is a non-GAAP measure. The equivalent GAAP measure to net debt is ‘liabil
Slide 28: Liquidity, debt and rating summary
Liquidity, debt and rating summary • Strong liquidity at 31 December 2020 • Group cash and investments of $8.0bn • Undrawn $4.1bn committed bank facilities ($3.4bn of which mature in 2024) • In respect of AstraZeneca’s announcement on 12 December 2020 to acquire Alexion Pharmaceuticals, Inc., the Co
Slide 29: Smooth bond maturity profile with ten-year average life
Smooth bond maturity profile with ten-year average life Debt Maturity Profile at 31 December 2020 1 3,000 2,500 2,000 $m 1,500 1,000 500 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2037 2042 2045 2048 2050 USD EUR GBP Overdrafts, finance leases & bank collateral 29 1. Notional bond valu
Slide 30: Summary
Astrazeneca What science can do
Slide 31: AstraZeneca in summary
AstraZeneca in summary Pipeline-driven transformation Global presence Strong pipeline Improving financials Balanced specialty and 22 Phase III medicines and Eight blockbuster medicines primary-care franchises1 significant lifecycle projects Returned to durable Leading emerging markets Advancing earl
Slide 32: Fixed-income investor update
Fixed-income investor update 11 February 2021
Slide 33: Appendix
AstraZeneca What science can do Appendix
Slide 34: Geographic growth
Geographic growth Strong performance in all major regions China 11% 20% of Product Sales Europe 9% US 21% of 13% Japan 0% 33% of Product Sales 10% of Product Sales Product Sales Other RoW 23% Emerging Markets 3% of (ex-China) Product Sales 13% of 9% Product Sales FY 2020 Regional Product Sales as re
Slide 35: Oncology: 'What's next'
Oncology: ‘What’s next’ Solid pipeline moving forward What’s next What’s now Phase III new medicines Now PIII Now PIII Phase I/II new medicines, selected datopotamab deruxtecan lung cancer ✓ camizestrant (AZD9833) breast cancer ✓ monalizumab capivasertib head & neck cancer breast, prostate cancer ad
Slide 36: BioPharmaceuticals: 'What's next'
BioPharmaceuticals: ‘What’s next’ Expanding pipeline, including immunology What’s next What’s now Phase I/II new medicines, selected Phase III new medicines MEDI3506 Now PIIb MEDI3506 Now PII in roxadustat PT027 (IL331 mAb2) ✓ (IL33 mAb) asthma✓ anaemia in CKD asthma DKD3 asthma, COPD, AD11, COVID-1
Slide 37: FY 2020 Reconciliation of Reported to Core Financial Measures
FY 2020 Reconciliation of Reported to Core Financial Measures Intangible Asset Diabetes Reported Restructuring Amortisation & Other1 Core2 Alliance Impairments $m $m $m $m $m $m Gross Profit 21,318 53 66 - 5 21,442 Distribution Expense (339) - - - - (339) R&D Expense (5,991) 35 84 - - (5,872) SG&A E
Slide 38: Q4 2020 Reconciliation of Reported to Core Financial Measures
Q4 2020 Reconciliation of Reported to Core Financial Measures Intangible Asset Diabetes Reported Restructuring Amortisation & Other1 Core2 Alliance Impairments $m $m $m $m $m $m Gross Profit 5,885 9 16 - 1 5,911 Distribution Expense (109) - - - - (109) R&D Expense (1,719) 5 7 - - (1,707) SG&A Expens
Slide 39: Prudent treasury risk-management policies
Prudent treasury risk-management policies The Company operates with a centralised Treasury structure so that key Treasury risks are managed at a Group level. Liquidity Policy • Prudent level of available cash and unutilised credit facilities • Group funding centrally managed Investment policy • Secu
Slide 40: Use of AstraZeneca conference call, webcast and presentation slides
Use of AstraZeneca conference call, webcast and presentation slides This presentation is neither an offer to sell nor a solicitation of an offer to buy any securities and shall not constitute an offer, solicitation, or sale in any jurisdiction in which an offer, solicitation, or sale is unlawful. Th
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