Slide 1: Year-to-date and Q3 2019 results
Year-to-date and Q3 2019 results Conference call and webcast for investors and analysts 24 October 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: Presenters
Presenters Pascal Soriot Dave Fredrickson Ruud Dobber Executive Director and Executive Vice President, Executive Vice President, Chief Executive Officer Oncology Business Unit BioPharmaceuticals Business Unit Marc Dunoyer José Baselga Mene Pangalos Executive Director and Executive Vice President, Ex
Slide 4: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 4
Slide 5: YTD and Q3 2019: repeated strong sales growth
YTD and Q3 2019: repeated strong sales growth Investing in sustainable growth continued in R&D, SG&A Business and financials Product sales up by 17%; 18% in the third quarter • Strong performance of new medicines1 (+72%); $3.0bn incremental sales vs. YTD 2018 • Oncology (+54%), New CVRM2 (+14%) and
Slide 6: Q3 2019: unprecedented, positive updates
Q3 2019: unprecedented, positive updates News-flow highlights from the late-stage pipeline Pipeline news Oncology • Tagrisso NSCLC1 (1st line, EGFRm2) regulatory approval (CN); met Phase III key secondary endpoint (OS3) • Imfinzi + treme NSCLC (1st line) (NEPTUNE) did not meet Phase III primary endp
Slide 7: YTD and Q3 2019: continued strong sales growth
YTD and Q3 2019: continued strong sales growth 17% sales growth YTD with new medicines growing at 72% Strong sales New medicines remain growth continued the key sales drivers $m YTD 2019: 1,200 14% 19% 18% +$3.0bn 1,000 incremental sales of new medicines 800 Product sales growth, percent 9% compared
Slide 8: YTD 2019: sales growth across all main therapy areas
YTD 2019: sales growth across all main therapy areas Double-digit growth across all therapy areas, Emerging markets % product % product Q3 2019 $m % change YTD 2019 $m % change sales sales Product sales 6,132 18 100 17,315 17 100 Oncology 2,334 48 38 6,393 54 37 New CVRM 1,113 11 18 3,207 14 19 Resp
Slide 9: Healthy Heart Africa has trained over 6,300 healthcare workers
Leader in sustainability Healthy Heart Africa’s fifth anniversary • Access to Healthcare: Healthy Heart Africa Since the launch in 2014, identified over two million elevated high blood-pressure readings Healthy Heart Africa has trained over 6,300 • 2019 Dow Jones Sustainability Indices Recognised as
Slide 10: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 10
Slide 11: Oncology: continuing to expand benefits to more patients
Oncology: continuing to expand benefits to increasingly more patients from a focused portfolio of standard-of-care medicines Growth of 54% New medicines Tagrisso, Imfinzi, Lynparza $m in YTD 2019 and Calquence added $2.3bn in YTD 2019 2,400 2,150 • Tagrisso: global expansion in 1st-line use continue
Slide 12: Lung cancer: Tagrisso
Lung cancer: Tagrisso 1st-line standard of care in US and JP; roll-out continued elsewhere Strong performance in all Worldwide approvals: 87 countries (2nd- $m markets: +86% in YTD 2019 line use) and 78 countries (1st-line use) 1,000 900 • US +57% (39% of total) • Europe +61% 800 Continued sequentia
Slide 13: Lung cancer: Imfinzi
Lung cancer: Imfinzi Continued US growth; progress outside US accelerated US peak sales are PACIFIC (consolidation treatment in US patient infusions $m expected at >$1bn p.a. unresectable, Stage III NSCLC) continued to increase becoming new SoC1 450 1,000 400 • Worldwide approvals: 53 countries 900
Slide 14: Lynparza
Lynparza The leading PARP inhibitor globally treating the most patients Eight quarters of strong Leading PARP inhibitor approved in 65 countries $m growth: +98% in YTD 2019 in ovarian and in 44 countries in breast cancer 350 • US +86% (51% of total) • Europe +61% 300 Growth driven by increasing use
Slide 15: BioPharmaceuticals: New CVRM and Respiratory
BioPharmaceuticals: New CVRM and Respiratory Increasing growth across all major medicines Growth of 13% Solid franchises $m in YTD 2019 with strong growth 2,500 • Farxiga: strong global position in growing class with unique CV data. Data obtained in HF will expand beyond diabetes 2,000 • Brilinta: g
Slide 16: BioPharmaceuticals: New CVRM
BioPharmaceuticals: New CVRM Blockbusters Farxiga and Brilinta continued global growth Steady Diabetes growth driven by Farxiga Continued growth $m SGLT21 the fastest-growing class of oral antidiabetics $m in Brilinta sales 800 • Farxiga +17% • Brilinta +26%: growth across all major 700 US (-6%): vo
Slide 17: BioPharmaceuticals: Respiratory
BioPharmaceuticals: Respiratory Sales growth 13% with Fasenra and Pulmicort leading Respiratory delivered Performance differentiated by Fasenra now approved in 50 $m strong performance portfolio mix across geographies countries, reimbursed in 32 with early-access programmes in 11 1,600 • US +15% • U
Slide 18: Emerging markets
Emerging markets Broad-based performance from diverse portfolio of countries Total EMs +26% - ex-China EMs +12% - China +37% Sales continued to grow ahead of the long-term Diversified growth: AP1 +9% - MEA2 +11% - LA3 +13% - Russia +53% ambition of mid to high single-digit growth 10% 15% • New medic
Slide 19: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 19
Slide 20: Reported profit and loss
Reported profit and loss YTD 2019 % total Q3 2019 % total % change % change $m revenue $m revenue Product sales 17,315 17 98 6,132 18 96 Collaboration revenue 405 6 2 274 278 4 Total revenue 17,720 17 100 6,406 22 100 Gross margin 79.5% 1.1 pp2 78.0% (0.1) pp Operating expenses1 12,871 15 73 4,633 2
Slide 21: Core profit and loss
Core profit and loss YTD 2019 % total Q3 2019 % total % change % change $m revenue $m revenue Product sales 17,315 17 98 6,132 18 96 Collaboration revenue 405 6 2 274 278 4 Total revenue 17,720 17 100 6,406 22 100 Gross margin 80.6% 0.8 pp 79.4% - pp Operating expenses1 10,537 6 59 3,615 9 56 - R&D
Slide 22: Cash flow
Cash flow Improvement in operating cash flow Net debt Cash-flow headlines $bn stable YTD 2019 vs. YTD 2018 • Net cash from operating activities $1,594m versus $394m primarily due to improvements in 0.7 13.7 13.0 3.5 3.6 0.1 13.3 working capital offset by higher taxes paid 4.5 1.9 • Cash before finan
Slide 23: Finance priorities
Finance priorities YTD results supportive Deleveraging / dividend growth Sales growth • As cash flow improves, deleveraging and progressive dividend policy +17% growth in product sales in YTD 2019 Cash-flow growth Operating leverage • YTD 2019: improvement in cash • 59% ratio of core operating expen
Slide 24: 2019 guidance updated and re-confirms the growth outlook
2019 guidance updated and re-confirms the growth outlook Product sales Core EPS Now a low to mid-teens percentage increase1 $3.50 to $3.70 1. Previously, guidance for product sales was for a low double-digit percentage increase. Guidance at CER. 24
Slide 25: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 25
Slide 26: Oncology: leadership in lung cancer
Oncology: leadership in lung cancer Tagrisso and Imfinzi saw continued success Tagrisso Imfinzi Phase III FLAURA with overall survival Phase III CASPIAN trial in SCLC3 Upcoming news flow Q4’19/2020 Phase III data readouts • NSCLC (1st line) (POSEIDON) (Q4) • Head & neck cancer (1st line) (H1) Time f
Slide 27: Oncology: leadership in DNA damage response
Oncology: leadership in DNA damage response Lynparza use to broaden in 1st-line ovarian cancer and prostate cancer Phase III PAOLA-1 trial in 1st-line ovarian cancer Phase III PROfound trial PFS primary endpoint in all-comers PFS by BRCAm/HRD1 status in prostate cancer ITT (inv) 16.6 22.1 BRCAm 21.7
Slide 28: BioPharmaceuticals: New CVRM
BioPharmaceuticals: New CVRM Breakthrough heart failure data for Farxiga Regulatory and Farxiga in T2D and non-T2D HF Roxadustat other milestones patients with more data to come Farxiga • Anaemia of CKD; NDD: regulatory CV death/HF hospitalisation/HF urgent visit approval (CN) • T2D CVOT (Phase III
Slide 29: BioPharmaceuticals: Respiratory
BioPharmaceuticals: Respiratory Recent progress in COPD and lupus (SLE) Regulatory and Breztri/PT010 Anifrolumab positive in 2nd other milestones in COPD Phase III lupus (SLE) trial Fasenra Phase III ETHOS trial • Statistically significant and clinically meaningful reduction in disease • Severe eosi
Slide 30: 'What's next': aiming for sustainable sales growth
‘What’s next’: aiming for sustainable sales growth Rich mid-stage pipeline; selected new molecular entities capivasertib (AKT1 inhibitor) ✓ Oncology trastuzumab deruxtecan (HER2 ✓ New CVRM cotadutide(GLP-111/glucagon co- New✓ Respiratory PT027 (SABA/ICS17) ✓ breast, prostate cancers ADC) - breast, g
Slide 31: Late-stage pipeline events in the 2019 to 2021 timeframe
Late-stage pipeline events in the 2019 to 2021 timeframe Busy news flow continues; underpinning consistent sales growth Q4 2019 H1 2020 H2 2020 2021 Regulatory Imfinzi - unresectable, Stage III NSCLC (PACIFIC) (CN) Lynparza - breast cancer (BRCAm) (CN) Lynparza - pancreatic cancer (1L, BRCAm) (EU) -
Slide 32: Agenda
Agenda Overview Oncology BioPharmaceuticals, Emerging markets Finance Pipeline update, news flow Closing and Q&A 32
Slide 33: YTD and Q3 2019: repeated strong sales growth
YTD and Q3 2019: repeated strong sales growth Investing in sustainable growth continued on R&D, SG&A Business and financials Product sales up by 17%; 18% in the third quarter • Strong performance of new medicines1 (+72%); $3.0bn incremental sales vs. YTD 2018 • Oncology (+54%), New CVRM2 (+14%) and
Slide 34: Q&A
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