Slide 1: H1 2020 results
H1 2020 results Conference call and webcast for investors and analysts 30 July 2020
Slide 2: Forward-looking statements disclaimer
Forward-looking statements disclaimer 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 sta
Slide 3: Speakers
Speakers Pascal Soriot Pam Cheng Dave Fredrickson Ruud Dobber Executive Vice President, Executive Director and Executive Vice President, Executive Vice President, BioPharmaceuticals Chief Executive Officer Operations & IT (for Q&A) Oncology Business Unit Business Unit Marc Dunoyer Leon Wang José Bas
Slide 4: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 4
Slide 5: H1 2020: performance underpins leading response to COVID19
H1 2020: performance underpins leading response to COVID19 Key highlights Total revenue up by 14%; modest benefit from COVID-191 stocking Strong revenue performance: new medicines (+45%)2; Oncology (+31%), New CVRM3 (+11%), Respiratory & Immunology (+7%) and Emerging markets (+15%) Core operating pr
Slide 6: Late-stage pipeline continued strongly
Late-stage pipeline continued strongly Major news items since Q1 2020 results update Medicine Indication (geography) Regulatory Lynparza ovarian cancer (1L1, HRD+2) (PAOLA-1) (US) approvals pancreatic cancer (1L, BRCAm3) (EU) prostate cancer (2L4, HRRm5) (US) Farxiga HF6 CVOT7 (US) Brilinta CAD8/T2D
Slide 7: H1 2020: total revenue +14%; new medicines leading
H1 2020: total revenue +14%; new medicines leading Increasing contribution from newest launch medicines bodes well Strong revenue New medicines growth continued drove growth $m 700 22% H1 2020: 18% 600 +$2.0bn 17% 14% 500 Total revenue growth, per cent 11% 11% incremental revenue of the new medicine
Slide 8: H1 2020: continued strong, diversified performance
H1 2020: continued strong, diversified performance 2020 guidance and a future of sustainable growth underpinned Q2 2020 change ratio H1 2020 change ratio $m % % $m % % Product sales 6,048 9 100 12,359 13 100 Oncology 2,609 24 43 5,111 28 41 New CVRM 1,153 12 19 2,251 10 18 Respiratory & 1,117 (8) 19
Slide 9: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 9
Slide 10: Tagrisso and Imfinzi
Tagrisso and Imfinzi Europe and EMs continued strong growth Tagrisso: 45% growth Imfinzi: 52% growth $m Approvals 86 (1L) and 89 (2L)1 $m Approvals 623 (NSCLC4), 83 (ES-SCLC), 173 (UC5) 1,000 • US +30% (36% of total) 500 • US +21% (60% of total) Low single-digit sequential Mature demand in NSCLC und
Slide 11: Lynparza
Lynparza Continued strong growth, global expansion $m Lynparza Approvals 75 (ovarian), 67 (breast), 38 Lynparza $m 60% growth (pancreatic) and 1 (prostate cancer) collaboration revenue 500 1,000 • US +55% (50% of total) 400 1st-line OC1 drove growth 800 • Europe +56% 300 600 SOLO-1 trial OC use drov
Slide 12: Calquence and Enhertu
Calquence and Enhertu Calquence inflection continued; Enhertu launch progressed Calquence Enhertu $m Approvals: 13 (CLL1) and 17 countries (MCL2) $m Approvals: US, Japan (mBC3 HER2+ 3L) 120 • Global $195m; US $193m 30 • US $36m $76m in-market sales by 100 Daiichi Sankyo; ~1/3 share • US CLL of patie
Slide 13: BioPharmaceuticals: New CVRM
BioPharmaceuticals: New CVRM Diabetes growth improved during Q2 (+8%) Diabetes: 5% growth driven by Farxiga Brilinta: growth $m SGLT21 class volume continues ahead of other T2D medicines $m continued globally 800 • Farxiga +21% • Brilinta +17%: growth in all regions; 700 majority of sales from acute
Slide 14: BioPharmaceuticals: Respiratory & Immunology
BioPharmaceuticals: Respiratory & Immunology Pulmicort hit by COVID-19; other Respiratory in solid growth Respiratory: Encouraging growth everywhere $m 7% growth except Pulmicort COVID-19 hit in China 1,600 • US +30% • Europe +8% 1,400 Symbicort (+46%); sustained volume Symbicort (+4%); regional per
Slide 15: BioPharmaceuticals: new launch medicines
BioPharmaceuticals: new launch medicines Portfolio of new medicines across uses and markets Fasenra - severe asthma Breztri Lokelma roxadustat Approvals 581 COPD Hyperkalaemia $m Anaemia in CKD • Europe $88m; Japan $46m • Emerging markets $9m • Global $28m; US $22m • Emerging markets $11m Leading bi
Slide 16: Emerging markets
Emerging markets Growth further diversified Total revenue EMs +15%, ex-China EMs +15%, China +14% Revenue continued to grow ahead of the long- Diversified growth: AP1 +7%, MEA2 +12%, LA3 +15%, Russia +67% term ambition of mid to high single-digit growth 15% 15% • New medicines +79% 12% 32% of total
Slide 17: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 17
Slide 18: Reported profit and loss
Reported profit and loss H1 2020 change % total Q2 2020 change % total $m % revenue $m % revenue Total revenue 12,629 14 100 6,275 11 100 - product sales 12,359 13 98 6,048 9 96 - collaboration revenue 270 107 2 227 116 4 Gross margin 80.5% (0.3) pp2 83.7% 1.0 pp Operating expenses1 8,322 3 66 4,128
Slide 19: Core profit and loss
Core profit and loss H1 2020 change % total Q2 2020 change % total $m % revenue $m % revenue Total revenue 12,629 14 100 6,275 11 100 - product sales 12,359 13 98 6,048 9 96 - collaboration revenue 270 107 2 227 116 4 Gross margin 81.1% (0.6) pp 84.3% 0.8 pp Operating expenses 7,256 7 57 3,656 6 58
Slide 20: Cash flow
Cash flow $0.7bn improvement in operating cash flow Net debt increased as a result of the March Key cash-flow metrics $bn payment of two-thirds of the annual dividend improved in H1 2020 • Net cash from operating activities 0.2 $1,179m versus $491m (H1 2019) 2.4 + improved underlying business perfor
Slide 21: Financial priorities
Financial priorities H1 2020 results support the strategic journey Deleveraging / dividend growth Revenue growth • As cash flow improves, deleveraging and progressive dividend policy +14% • Unchanged priorities for capital growth in total allocation revenue in H1 2020 Operating leverage • 57% ratio
Slide 22: 2020 guidance unchanged
2020 guidance unchanged Total revenue Core EPS Increase by a high single-digit to Increase by a mid- to a low double-digit percentage high-teens percentage Guidance is at CER. AstraZeneca recognises the heightened risks and uncertainties from the impact of COVID-19 referred to in the results announc
Slide 23: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 23
Slide 24: Oncology: recent highlights
Oncology: recent highlights Strong ASCO 2020 supports growth Tagrisso Enhertu Other ADAURA adjuvant NSCLC (EGFRm) • Gastric, NSCLC, colorectal cancer • highlights • DESTINY-Gastric01 • Imfinzi ORR1 42.9% ES-SCLC (CASPIAN) OS2 HR 0.59 (95% CI, 0.39-0.88) sustained final OS • DESTINY-Lung01 • Lynparza
Slide 25: Oncology: DS-1062 TROP2-targeting ADC
Oncology: DS-1062 TROP2-targeting ADC On-strategy, licensing collaboration with Daiichi Sankyo Potential best-in- Building on Further class medicine • legacy in NSCLC opportunities • 2nd-generation TROP21-targeting • Phase I/Ib NSCLC and TNBC3 trial ADC2 underway • Compelling efficacy in metastatic
Slide 26: Oncology: 'What's next'
Oncology: ‘What’s next’ Solid pipeline moving forward What’s next What’s now Phase I/II new medicines, selected Phase III new medicines monalizumab Phase III AZD9833 Phase III capivasertib (NKG2a1 mAb2) TBD ✓ (SERD3, oral) TBD ✓ breast cancer head & neck cancer breast cancer adavosertib Phase III ce
Slide 27: Leading response to COVID-19
Leading response to COVID-19 Focus on advancing a vaccine, antibody AZD1222 vaccine AZD7442 ChAdOx1 nCoV-19 neutralising mAB • Potential for strong • Combo of mAbs against the immune response SARS-CoV-2 spike protein • Simple manufacturing; • Proprietary half-life AZD1222 trial overview HEK-293 cell
Slide 28: BioPharmaceuticals: New CVRM
BioPharmaceuticals: New CVRM Potential leadership in cardio-renal complications 57th ERA-EDTA 80th ADA Virtual Farxiga DAPA-CKD Phase III trial Virtual Congress Scientific Sessions Primary, all secondary endpoints met • Lokelma • Farxiga Phase IIIb DIALIZE trial sub analysis Phase III DAPA-HF trial
Slide 29: 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 cotadutide MEDI3506 roxadustat PT027 (GLP-11/glucagon co-agonist) (IL338 mAb) anaemia in CKD asthma NASH2 COPD, AD9 AZD4831 New as of AZD1402 n
Slide 30: Late-stage pipeline events in the 2020-2021 timeframe
Late-stage pipeline events in the 2020-2021 timeframe Busy news flow continues; underpinning consistent revenue growth H2 2020 H1 2021 H2 2021 Regulatory Imfinzi - ES-SCLC (EU, JP) Lynparza - pancreatic (1L, BRCAm) (JP) - Lynparza - OC (1L) (PAOLA-1) (EU, JP); breast (BRCAm) (CN); Lynparza - prostat
Slide 31: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 31
Slide 32: AstraZeneca in summary
AstraZeneca in summary Pipeline-driven transformation Global presence Strong pipeline Improving financials Balanced specialty and 17 Phase III medicines and Nine blockbuster medicines primary-care franchises1 significant lifecycle projects Returned to sustainable Leading emerging markets Advancing e
Slide 33: Questions & Answers
“ar ne beat: Questions.” & Answers oe
Slide 34: Appendix: 'What's next' Next key milestone by project
Appendix: ‘What’s next’ Next key milestone by project Oncology BioPharmaceuticals Project Target Phase Indication Next milestone CVRM GLP-1/ monalizumab NKG2a II head & neck cancer Phase III start TBD cotadutide II NASH Phase IIb data 2021 glucagon AZD9833 SERD I/II breast cancer Phase III start TBD
Slide 35: Use of AstraZeneca conference call, webcast and presentation slides
Use of AstraZeneca conference call, webcast and presentation slides The AstraZeneca webcast, conference call and presentation slides (together the ‘AstraZeneca Materials’) are for your personal, non-commercial use only. You may not copy, reproduce, republish, post, broadcast, transmit, make availabl