Slide 1: Q1 2019 results
Q1 2019 results Conference call and webcast for investors and analysts 26 April 2019
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, pe
Slide 3: Speakers
Speakers Pascal Soriot Dave Fredrickson Ruud Dobber Executive Director and Executive Vice President, Executive Vice President, Chief Executive Officer Oncology BioPharmaceuticals Marc Dunoyer Mene Pangalos José Baselga Executive Director and Executive Vice President, Executive Vice President, Chief
Slide 4: Agenda
Agenda Overview Oncology BioPharma, Emerging markets Finance Pipeline update, news flow Closing and Q&A 4
Slide 5: 2013 strategic priorities
2013 strategic priorities Achieve 1 Return 2 Be a great 3 scientific to growth place to work leadership 5
Slide 6: 2019 strategic priorities
2019 strategic priorities The new Deliver growth and therapy area leadership strategic priorities Accelerate innovative science Be a great place to work 6
Slide 7: Q1 2019: strong start
Q1 2019: strong start Double-digit sales growth; compelling operating leverage Business and financials Product sales up by 14% • Strong performance of new medicines1 (+83%); $0.9bn incremental sales vs. Q1 2018 • Oncology (+59%), New CVRM2 (+19%) and Respiratory (+14%) • Emerging markets (+22%) with
Slide 8: Q1 2019: continued pipeline progress
Q1 2019: continued pipeline progress Highlights from late-stage development Pipeline news Oncology • Lynparza breast cancer (BRCAm1) Regulatory approval (EU) Regulatory submission (CN) pancreatic cancer (BRCAm) Met primary endpoint • selumetinib NF12 Breakthrough Therapy Designation (US) New CVRM, •
Slide 9: Q1 2019: sales off to a strong start
Q1 2019: sales off to a strong start 14% sales growth; new medicines +83% Strong sales New medicines remain growth continued the key sales drivers $m Q1 2019: 400 +0.9bn Product sales growth, percent 300 incremental sales of new medicines compared to Q1 2018 Diabetes Alliance BMS 200 100 FY FY FY FY
Slide 10: Q1 2019: sales growth across all main therapy areas
Q1 2019: sales growth across all main therapy areas Diversified business across all therapy areas and geographies Q1 2019 % product % change $m sales Product sales 5,465 14 100 Oncology 1,892 59 35 New CVRM 1,033 19 19 Respiratory 1,283 14 23 Other medicines 1,257 (21) 23 Emerging markets 2,004 22 3
Slide 11: Oncology: strategy further evolved
Oncology: strategy further evolved A leading, diversified oncology business Lung cancer Multiple cancers Multiple cancers Blood cancers trastuzumab deruxtecan • Stage IV NSCLC1 • Unresectable, • Ovarian, breast • DS4 collaboration • First AstraZeneca T790Mm2 / Stage III NSCLC cancers • Next: HER25-p
Slide 12: Agenda
Agenda Overview Oncology BioPharma, Emerging markets Finance Pipeline update, news flow Closing and Q&A 12
Slide 13: Oncology: Establishing new standards of care
Oncology Establishing new standards of care Total Oncology sales New medicines Lynparza, Tagrisso, $m up by 59% in Q1 2019 Imfinzi and Calquence added $0.7bn 2,000 1,750 1,500 • Tagrisso: now the no.1 AstraZeneca medicine 1,250 1,000 • Imfinzi: continued US uptake; ex-US use increasing 750 500 • Lyn
Slide 14: Lung cancer: Tagrisso
Lung cancer: Tagrisso 1st-line standard of care in US, JP; EU + RoW launches continue Strong performance in all Worldwide approvals: 83 countries (2nd- $m markets: +92% in Q1 2019 line use) and 67 countries (1st-line use) 700 600 • US +76% • Europe +55% 60%+ adoption in new EGFR 1st-line launchesRed
Slide 15: Lung cancer: Imfinzi
Lung cancer: Imfinzi Opportunity outside the US starting to unfold in 2019 US peak sales are PACIFIC (unresectable, Stage III US patient infusions $m expected at >$1bn NSCLC) becoming new SoC1 continue to increase • 45 global approvals obtained 300 900 250 800 • US $231m Increasing CRT2 rates overal
Slide 16: Lynparza
Lynparza Leading PARP inhibitor treating more patients Seven quarters of strong Leading PARP inhibitor approved in 64 countries $m growth: +105% in Q1 2019 in ovarian and in 38 countries in breast cancer • US +80% • Europe +62% 250 Consolidating PARP-inhibitor BRCAm ovarian cancer; leadership in ova
Slide 17: BioPharma (New CVRM and Respiratory)
BioPharma (New CVRM and Respiratory) Improving business across all major medicines BioPharma sales Solid franchises $m up 16% in Q1 2019 with strong growth 2,500 • Farxiga: continued global growth in attractive class with 2,000 unique CV outcomes data. Heart failure trial upcoming 1,500 • Brilinta:
Slide 18: New CVRM
New CVRM Blockbusters Farxiga and Brilinta sustained strong performances Strong Diabetes growth, in particular Continued growth $m in Europe and Emerging markets $m in Brilinta sales 750 +17% Farxiga +23% • Brilinta +24%: growth across all • US (+3%) major regions; benefit of Chinese +4% SGLT2 class
Slide 19: Respiratory
Respiratory Sales growth 14%; Fasenra and Pulmicort pulling ahead Respiratory delivered Diverse performance Fasenra sales now $m strong performance across geographies annualising >$0.5bn 1,500 +14% US +28% US $93m 1,250 • Symbicort (-4%); market-share • Leading new-patient volume share +8% gain, vol
Slide 20: Emerging markets
Emerging markets 2018 year-end webcast on China and Emerging markets China consistently outperforming China continued very strongly (+28%) Sales continued to grow ahead of the long-term Ex-China growth (+13%) picking up ambition of mid to high single-digit growth 13% 22% 12% 12% 2 0 Emerging markets
Slide 21: Agenda
Agenda Overview Oncology BioPharma, Emerging markets Finance Pipeline update, news flow Closing and Q&A 21
Slide 22: Reported profit and loss
Reported profit and loss Q1 2019 % total % change $m revenue Product sales 5,465 14 100 Collaboration revenue 26 (86) - Total revenue 5,491 11 100 Gross margin 79.3% 2.8 pp1 - Operating expenses2 3,858 5 70 - R&D expenses 1,266 3 23 - SG&A expenses 2,514 7 46 Other operating income 593 27 11 Operati
Slide 23: Core profit and loss
Core profit and loss Q1 2019 % total % change $m revenue Product sales 5,465 14 100 Collaboration revenue 26 (86) - Total revenue 5,491 11 100 Gross margin 80.5% 2.4 pp - Operating expenses1 3,369 5 61 - R&D expenses 1,225 3 22 - SG&A expenses 2,066 6 38 Other operating income 594 n/m 11 Operating p
Slide 24: Finance priorities
Finance priorities Q1 results supportive Deleveraging / dividend growth Sales growth • Q2 2019: reduction in net debt anticipated +14% • As cash flow improves, growth in product deleveraging and progressive sales in Q1 2019 dividend policy Cash-flow growth Profit growth • Q1 2019: impacted by legacy
Slide 25: 2019 guidance confirms the growth outlook
2019 guidance confirms the growth outlook Product sales Core EPS A high single-digit percentage increase $3.50 to $3.70 Guidance at CER. 25
Slide 26: Agenda
Agenda Overview Oncology BioPharma, Emerging markets Finance Pipeline update, news flow Closing and Q&A 26
Slide 27: R&D productivity 2014-2018
R&D productivity 2014-2018 Progress to sustain sales growth ~10x increase in the number of high-impact1 papers published 33% 30 increase in the number projects with validated of Phase II projects proof of mechanism 50+ 23 regulatory designations regulatory approvals in major markets2 in 20183 1. Hig
Slide 28: Respiratory: Progress across portfolio; expanding Fasenra lifecycle programme
Respiratory Progress across portfolio; expanding Fasenra lifecycle programme Regulatory and Fasenra other milestones Strong efficacy in asthma - extensive lifecycle programme • Duaklir 28-51% Indication Phase Status - COPD: regulatory approval (US) Nasal polyps (by partner) reduction in the annual a
Slide 29: New CVRM: Farxiga anticipated to reach more patients and in new uses
New CVRM Farxiga anticipated to reach more patients and in new uses Regulatory Farxiga milestones Expanding on the DECLARE trial - extensive lifecycle programme • Farxiga Farxiga DECLARE trial • DAPA-HF trial - HFrEF - - T1D: regulatory approval (EU, Subgroup analysis: CV death/HHF1 anticipated data
Slide 30: 'What's next': roxadustat anaemia of CKD
‘What’s next’: roxadustat Overall safetyinprofile anaemia of CKD supports regulatory submission Pooled safety analysis is on track with data anticipated in Q2 2019 Q2 2019 Totality of evidence H2 2019 Pooled safety 3x trials in pre-dialysis Regulatory analysis 4x trials in dialysis submission 30
Slide 31: Oncology: Another successful quarter; preparing for a very busy H2 2019
Oncology Another successful quarter; preparing for a very busy H2 2019 Regulatory ASCO 2019 anticipated Very busy news milestones main data presentations flow in H2 2019 • Lynparza • Tagrisso • Imfinzi - breast cancer (BRCAm): - NSCLC (1L, EGFRm) - NSCLC 1L: POSEIDON, NEPTUNE regulatory approval (EU
Slide 32: 'What's next': breast cancer
‘What’s next’: breast cancer Strategic expansion well underway Trastuzumab deruxtecan (DS-8201) Differentiated antibody-drug conjugate 20.7 • Phase II - data from H2 2019 - DESTINY-Breast01 (3L HER2+) months duration of response w/Breakthrough Therapy Designation (US) 59.5% - DESTINY-Gastric01 (3L H
Slide 33: Late-stage pipeline events in the 2019, 2020 timeframe
Late-stage pipeline events in the 2019, 2020 timeframe Busy news flow continues; underpinning consistent sales growth Q2 2019 H2 2019 2020 Regulatory Tagrisso - NSCLC 1L EGFRm (CN) Imfinzi - unresectable, Stage III NSCLC (CN) Lynparza - breast cancer BRCAm (CN) Lynparza - ovarian cancer 1L BRCAm (SO
Slide 34: 'What's next': aiming for sustainable sales growth
‘What’s next’: aiming for sustainable sales growth Rich mid-stage pipeline; selected new molecular entities Oncology New CVRM Respiratory capivasertib (AKT1 inhibitor) breast, prostate cancers Phase III start in H1 2019 ✓ Phase III trastuzumab deruxtecan (HER2 ADC) - breast, gastric, other - Phase I
Slide 35: Agenda
Agenda Overview Oncology BioPharma, Emerging markets Finance Pipeline update, news flow Closing and Q&A 35
Slide 36: Q1 2019: strong start
Q1 2019: strong start Double-digit sales growth; compelling operating leverage Product sales up by 14% • Strong performance of new medicines (+83%); $0.9bn incremental sales vs. Q1 2018 • Oncology (+59%), New CVRM (+19%) and Respiratory (+14%) • Emerging markets (+22%) with China (+28%) Total revenu
Slide 37: Q&A
Q&A
Slide 38: Q1 2019: strong start
Q1 2019: strong start Double-digit sales growth; compelling operating leverage Product sales up by 14% • Strong performance of new medicines (+83%); $0.9bn incremental sales vs. Q1 2018 • Oncology (+59%), New CVRM (+19%) and Respiratory (+14%) • Emerging markets (+22%) with China (+28%) Total revenu
Slide 39: 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 availab
Slide 40: Q1 2019 results
Q1 2019 results Conference call and webcast for investors and analysts 26 April 2019