AstraZeneca PLC · LSE:AZN
AstraZeneca — FY2001 Earnings Presentation
22 slides from AstraZeneca's earnings presentation, 2002
Slide 1: 2001 Annual Results
A 2001 Annual Results A Jon Symonds Chief Financial Officer 2001 Annual Results
Slide 2: Introduction and Headline results
Introduction b Headline results b Product highlights b Financial review Page 2 A Headline results 2001 2000 CER $m $m growth Sales 16,480 15,804 8% Operating profit 4,156 3,984 6% EPS $1.77 $1.64 11% Dividends $0.70 $0.70 - Share repurchase $1,080m $353m - Page 3 A 2001 Annual Results
Slide 3: Q4 headlines; Quarterly phasing 2001 operating profit
Q4 headlines % growth 20 18 16 14 12% 12 Q4 10 8% 8% FY 8 6% 6 4 2 0 Sales Op profit Page 4 A Quarterly phasing 2001: operating profit growth 14 12% 12% 12 10 8 6% 6 4 2 Q2 0 -2 Q1 Q3 Q4 -4 -4% -6 Page 5 A 2001 Annual Results
Slide 4: Q4 headlines; Sales by territory
Q4 headlines % growth 20 18% 18 16 14 12% 12 11% Q4 10 8% 8% FY 8 6% 6 4 2 0 Sales Op profit Group EPS Page 6 A Sales by territory % CER $m growth North America 9,225 7 USA 8,700 7 Europe 5,270 8 Japan 851 16 RoW 1,134 7 16,480 8 Page 7 A 2001 Annual Results
Slide 5: Sales by Therapeutic Area; Quarterly sales growth
Sales by Therapeutic Area % CER $m growth GI 6,308 2 CV 3,537 6 Oncology 2,146 16 Respiratory 1,556 17 +12% CNS 999 48 PAI 1,511 - Other 423 11 Page 8 A Quarterly sales growth % 16% 16 14 12% 12% 12 10% 10 9% 9% 8% 8% 8% Total 8 7% Non-PPI 6 4 2 0 FY01 Q1 Q2 Q3 Q4 Page 9 A 2001 Annual Results
Slide 6: GI sales; Nexium NRx market share
Sales by Therapeutic Area b GI sales: $6,308m +2% ! Nexium® $580m (US $456m) Page 10 A Nexium® NRx Market Share (PPI) 70% 60% 50% NRx Market Share (PPI) AZ PPI 40% Prevacid® 30% Prilosec® 20% Nexium® Protonix® 10% Aciphex® 0% Jan-99 Mar-99 May-99 Jul-99 Sep-99 Nov-99 Jan-00 Mar-00 May-00 Jul-00 Sep-
Slide 7: Nexium European share; Losec sales
In Europe Nexium® market share is increasing steadily on a monthly basis* 9% Nexium® share in 11 markets 8% 7% % Share of PPI market 6% 5% 4% 3% 2% 1% 0% Mar-01 May-01 Jan-01 Jun-01 Nov-01 Nov-00 Jul-01 Aug-01 Oct-00 Oct-01 Apr-01 Sep-00 Dec-00 Sep-01 Feb-01 Source: IMS constant US$ (*) All European
Slide 8: Cardiovascular and Respiratory sales
Sales by Therapeutic Area b Cardiovascular sales: $3,537m +6% ! Atacand® $414m +46% ! Seloken® / Toprol-XL® $722m +28% ! Zestril® $1,097m -6% Page 14 A Sales by Therapeutic Area b Respiratory sales: $1,556m +17% ! Pulmicort® $775m +14% ! Symbicort® $83m Page 15 A 2001 Annual Results
Slide 9: Symbicort take-off in Europe; Oncology sales
Symbicort® rapid take-off in Europe Symbicort® share of fixed combination market in 13 launch countries 20 18 16 Market Share % 14 12 10 8 6 4 2 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Months Source IMS Health/Local Pharmacy Market Data Nov 2001 : Excludes Luxembourg and Iceland Page 16 A Sales by T
Slide 10: CNS sales; Seroquel US NRx share
Sales by Therapeutic Area b CNS sales: $999m +48% ! Zomig® $277m +20% ! Seroquel® $700m +67% Page 18 A Seroquel®: US NRx in anti-psychotic market % Share 35 Risperdal® 30 Zyprexa® 25 20 Seroquel® 15 10 5 Clozaril® Geodon® 0 May-00 May-01 Nov-99 Mar-00 Nov-00 Mar-01 Nov-01 Apr-00 Apr-01 Jun-99 Jul-99
Slide 11: Seroquel cash market share; Pain, Anaesthesia, Infection sales
Seroquel® cash market share by region % 14 12 10 8 6 4 2 0 MAT Q3/98 MAT Q4/98 MAT Q1/99 MAT Q2/99 MAT Q3/99 MAT Q4/99 MAT Q1/00 MAT Q2/00 MAT Q4/97 MAT Q1/98 MAT Q2/98 MAT Q3/00 MAT Q4/00 MAT Q1/01 MAT Q2/01 MAT Q3/01 NORTH AMERICA EUROPE* JAPAN *Major launched markets (UK, Germany, Italy, Spain) S
Slide 12: Financial highlights; Operating margins full year
Financial highlights b Margins b Currency b Cash flow Page 22 A Operating margins: full year FY00 FY01* Movement* Margin 25.2 25.2 no change COGS 26.5 27.0 -0.5 Distribution 1.3 0.7 +0.6 R&D 16.6 16.3 +0.3 S,G&A 31.8 32.9 -1.1 Other income 1.4 2.2 +0.8 * Rounding difference on summation = 0.1 Page 2
Slide 13: 2002 margin trends; Currency impact
2002 margin trends b Investment to support portfolio to continue ! targeted launch costs ! post launch clinical trials b Realisation of value from non core products to continue Page 24 A Currency impact % Sales Profits EPS 0 -1 -1% -3% 2001 -2 -2% -2% 2000 -3 -3% -4 -4% -4% Page 25 A 2001 Annual Res
Slide 14: Currency effect on 2001; Cash flow
Currency effect on 2001 sales and costs Negative Positive Euro Sales Yen GBP Costs SEK -14 -10 -6 -2 2 6 10 14 % change Page 26 A Cash flow ($billions) 0.2 -0.4 4.1 -0.8 Interest Exceptionals -1.6 Tax -2.2 Capex -0.7 Operating cash flow Dividend + Net cash share buyback flow Page 27 A 2001 Annual Re
Slide 15: Cash management
Cash management b Dividend policy unchanged b Share buy-back ! initial programme will be completed early ! programme extended to end 2003 ! additional $2bn allocated Page 28 A A Tom McKillop Chief Executive Officer 2001 Annual Results
Slide 16: The Foundation; Current portfolio
The Foundation b Investments in new product development b Strengthened global sales and marketing b Delivery of synergies/disciplined resource prioritisation b Selective disposal of non-core products Two-year EPS growth +26% Top Tier total shareholders return Page 30 A Current portfolio Sales by Sal
Slide 17: Current portfolio; Drive the growth products
Current portfolio 2001 Prilosec® Zestril® b Drive Base growth Mature Plendil® products Nolvadex® b New Growers launches Page 32 A Drive the growth products Moving Annual Totals 2500 2000 Arimidex® Zomig® Atacand® 1500 Casodex® Seroquel® $m 1000 500 0 Q3 00 Q4 00 Q1 01 Q2 01 Q3 01 Q4 01 Page 33 A 200
Slide 18: Drive the growth products
Drive the growth products b Atacand®: SCOPE / CHARM / DIRECT b Zomig®: Fast Melt / Nasal Spray b Seroquel®: Sustained Release / Mania b Casodex®: Early Prostate Cancer b Arimidex®: Adjuvant fast track Page 34 A Drive the growth products 2500 2000 1500 Arimidex® $m Zomig® Atacand® Casodex® 1000 Seroq
Slide 19: Portfolio transformation; Timeline
Portfolio transformation Exanta™ 2001 Crestor™ 2003 Prilosec® Iressa™ Zestril® Faslodex™ Symbicort® Plendil® Nexium® Nolvadex® Casodex® Arimidex® Zomig® Seroquel® Atacand® Page 36 A Timeline Zestril® Possible Nolvadex® ? Generic Entry Prilosec® ? Plendil ® ? 2002 Q1 Q2 Q3 Q4 2003 Q1 Q2 Q3 Q4 Faslode
Slide 20: 2002 outlook
2002 outlook Market expectations: EPS range 2.80 2.60 2.40 2.20 $ 2.00 1.80 1.60 1.40 2001 2002 2003 2004 2005 Page 38 A Outlook b Strength of intellectual property b If Q2 generic omeprazole and fluoxetine-like erosion: Broadly flat sales for 2002 b Continued investment in R&D, and sales and market
Slide 21: 2004 and beyond
2004 and beyond Top tier Exanta™ financial performance Crestor™ Iressa™ Faslodex™ Nexium® Earnings Symbicort® Casodex® Margins Arimidex® Zomig® 2003 Foundation Seroquel® Sales Atacand® Page 40 A A 2001 Annual Results 2001 Annual Results
Slide 22: Disclaimer Notice
Disclaimer Notice Disclosure Notice: The preceding forward looking statements relating to expectations for earnings and business prospects for AstraZeneca PLC are subject to risks and uncertainties, which may cause results to differ materially from those set forth. These include, but are not limited