AstraZeneca PLC · LSE:AZN
AstraZeneca — Debt Investor Presentation (February 2024)
39 slides from AstraZeneca's debt investor presentation, Feb 8, 2024
Slide 1: FY and Q4 2023 Results
FY and Q4 2023 Results Fixed-income investor update 08 February 2024
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: Disclaimer and 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 4: Key messages
Key messages AstraZeneca FY 2023 – Strong commercial performance and financial execution Poised to deliver through the next decade Maintaining innovation and pipeline delivery Investing in new launches, near and mid-term pipeline Investing in new platforms and technologies Shaping the future of medi
Slide 5: Business update
Business update
Slide 6: Delivered on our growth ambition
Delivered on our growth ambition Total Revenue growth ambition to achieve Culture of science-led innovation unlocked >$45bn in 2023 set in 2014 a decade of industry-leading growth Follow the science Disciplined investment Focus Source: Total Revenue Growth ambition as shown in 2014 6 Appendix: Gloss
Slide 7: Poised to deliver through the next decade
Poised to deliver through the next decade On track for ambition of Delivered on our Continued investment to drive mid-30%s Operating margin upgraded 2023 guidance sustainable long-term growth in the mid-term Total Revenue to Driving near and mid-term increase by +6% 32% growth across geographies mid
Slide 8: Driving strong growth across geographies and therapy areas
Driving strong growth across geographies and therapy areas Broad-based, diverse source of +21% Total Revenue Strength across +18% FY 2023 | % Total Revenue by therapy area therapy areas +10% +12% FY 2023 | Total Revenue (71%) Oncology CVRM R&I V&I Other Rare Disease 1,357 40% 23% 14% 3% 3% 17% 18,47
Slide 9: Investing in new launches, near and mid-term pipeline
Investing in new launches, near and mid-term pipeline 4 new medicines approved1 and on track to deliver on ambition for at least 15 NME launches by 2030 27 Phase III trials initiated across 18 medicines • Approval in asthma • First-in-class inhaler >10 Phase III trials initiated with blockbuster pot
Slide 10: Industry-leading pipeline, significant catalysts in 2024
Industry-leading pipeline, significant catalysts in 2024 Strong near-term Phase III catalyst volume Upcoming select data readouts build select opportunities include: confidence in novel early-stage pipeline LAURA EGFRm NSCLC H1 2024 Tagrisso (unresectable Stg. III) IO Bispecifics DESTINY-Breast06 HE
Slide 11: Investing in new platforms and technologies
Investing in new platforms and technologies Shaping the future of medicine NOVEL Foundation in ADCs Six wholly owned ADCs Combo opportunities Oncology ADCS unique targets and warheads + bispecifics, + CTx Oncology CELL Internal THERAPY technologies BioPharma T-CELL Internal Oncology ENGAGERS technol
Slide 12: Oncology – FY and Q4 2023
Oncology – FY and Q4 2023 Total Revenue +21% in FY 2023 fuelled by strong global demand growth Oncology Q4 2023: key dynamics FY 2023 $18.4bn, +21% 5,000 • Tagrisso +6%, demand growth in US and EU, offset by JP pricing, ERoW rebate reclassification and hospital ordering dynamic in CN 4,000 • Lynparz
Slide 13: Oncology – R&D highlights
Oncology – R&D highlights Gracell acquisition furthers our position in CAR-T and haematology Gracell cell therapy potential best-in-class BCMA/CD19 manufacturing platform GC012F dual-targeted CAR-T Differentiated clinical activity in newly Shorter manufacturing time diagnosed multiple myeloma1 Incre
Slide 14: BioPharmaceuticals – FY and Q4 2023
BioPharmaceuticals – FY and Q4 2023 Double-digit growth from CVRM and R&I, strong Beyfortus launch in V&I CVRM R&I V&I FY 2023 $10.6bn, +18% FY 2023 $6.4bn, +10% FY 2023 $1.4bn, -71% 3,000 2,500 1,800 2,500 1,600 2,000 1,400 Total Revenue ($m) Total Revenue ($m) Total Revenue ($m) 2,000 1,200 1,500
Slide 15: BioPharmaceuticals
BioPharmaceuticals Pipeline success leads to multiple launches of differentiated medicines CVRM R&I V&I First-and-only self-admin auto- First-and-only rescue inhaler First-and-only RSV mAb injector for the treatment of that also reduces risk of approved for the broad ATTRv-PN asthma exacerbations in
Slide 16: BioPharmaceuticals
BioPharmaceuticals Future expansion of CVRM portfolio with numerous ongoing late-stage, early-stage trials Opportunity to enhance existing CVRM portfolio with ongoing late-stage trials baxdrostat u/r HTN ATTR-CM Phase III + zibotentan/ CKD w/ high dapagliflozin proteinuria balcinerone/ baxdrostat/ C
Slide 17: BioPharmaceuticals – R&D highlights
BioPharmaceuticals – R&D highlights Accelerating our ambition in immune-mediated diseases Innovative immunology portfolio Autologous CAR-T PHASE I PHASE II PHASE III MARKETED Phase I TULIP (Systemic lupus s.c. data in 2025 erythematosus) IRIS (Lupus nephritis) Autologous CAR-Tregs Preclinical NEW DA
Slide 18: Rare Disease – FY and Q4 2023
Rare Disease – FY and Q4 2023 Total Revenue +12% in FY 2023 driven by neurology and patient demand Rare Disease Q4 2023: key dynamics Ultomiris and Soliris FY 2023 $7.8bn, +12% Conversion1 and geographic expansion 2,000 100% 90% 1,800 Sustainable, durable growth of 80% 1,600 C5 Franchise 70% 1,400 •
Slide 19: Rare Disease – R&D
Rare Disease – R&D New Phase III trial starts with blockbuster potential ALXN2220 efzimfotase alfa (ALXN1850) Novel TTR depleter | ATTR-CM Next-gen enzyme replacement therapy| HPP DepleTTR-CM Q4W IV HICKORY Phase III | naïve patients (N = 114) Adolescent/adult N = 1000 (>12 yrs.) ~85% Composite prim
Slide 20: Financial update
Financial update
Slide 21: FY 2023 – Reported profit and loss
FY 2023 – Reported profit and loss FY 2023 CER change % Total Q4 2023 CER change % Total $m % Revenue $m % Revenue Total Revenue 45,811 6 100 12,024 8 100 - Product Sales 43,789 4 96 11,323 5 94 - Alliance Revenue 1,428 89 3 424 67 4 - Collaboration Revenue 594 (1) 1 277 74 2 Product Sales Gross Mar
Slide 22: FY 2023 – Core profit and loss
FY 2023 – Core profit and loss FY 2023 CER change % Total Q4 2023 CER change % Total $m % Revenue $m % Revenue Total Revenue 45,811 6 100 12,024 8 100 - Product Sales 43,789 4 96 11,323 5 94 - Alliance Revenue 1,428 89 3 424 67 4 - Collaboration Revenue 594 (1) 1 277 74 2 Product Sales Gross Margin
Slide 23: Track record and FY 2024 guidance (CER)
Track record and FY 2024 guidance (CER) Underlying business momentum drives strong Total Revenue and Core EPS growth Total Revenue growth Core EPS growth 2024 Guidance (CER) $bn 0.3 $7.26 Total Revenue 4.1 $6.66 • Low double-digit to 4.1 low-teens percentage increase $5.29 45.5 33.4 40.3 Core EPS •
Slide 24: Net debt and capital allocation
Net debt and capital allocation Delivered continued cash flow improvement Net debt bridge Capital allocation $bn Free cashflow post-Capex Maintain strong Value-enhancing Progressive BIBP investment-grade business BIBP dividend policy3 credit rating development Recent examples4 Net debt CFO Capex Dea
Slide 25: Net debt position
Net debt position 31-Dec-23 31-Dec-22 $m $m Gross debt (28,622) (29,232) Cash & cash equivalents 5,840 6,166 Other investments 122 239 Net derivative financial instruments 150 (96) Closing net debt 1 (22,510) (22,923) 1. Net debt is a non-GAAP measure. The equivalent GAAP measure to Net debt is ‘lia
Slide 26: Liquidity, debt and rating summary
Liquidity, debt and rating summary • Strong liquidity at 31 December 2023: • Group cash and investments of $6bn • Undrawn $6.9bn committed bank facilities: $2bn mature in February 2025 and $4.9bn mature in April 2029 • Access to diverse sources of funding through US and European term debt and commer
Slide 27: Smooth debt maturity profile with eight-year average life
Smooth debt maturity profile with eight-year average life Debt Maturity Profile at 31 December 2023 1 6,000 5,000 4,000 $m 3,000 2,000 1,000 0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2037 2042 2045 2048 2050 2051 USD Overdrafts, finance leases & bank collateral EUR GBP Term bank loans 1. N
Slide 28: Appendix & Glossary
Appendix & Glossary • Glossary • ESG – summary of sustainability progress in 2023 • Oncology tumour maps • Emerging markets • Financial highlights/Core reconciliation • Treasury Policy
Slide 29: Glossary – abbreviations (1 of 2)
GL O S S A RY | FY 2023 abbreviations Glossary – abbreviations (1 of 2) 1L = first line EGFRm = epidermal growth factor receptor mutation 2L = second-line EM = emerging markets ADCs = antibody drug conjugates ERoW = established rest of world AI = aromatase inhibitor ERT = estrogen replacement therap
Slide 30: Glossary – abbreviations (2 of 2)
GL O S S A RY | FY 2023 abbreviations Glossary – abbreviations (2 of 2) NRDL = national reimbursement drug list NSCLC = non-small cell lung cancer NST = neoadjuvant systemic treatment oGLP1 = oral glucagon-like receptor peptide 1 oPCSK9 = oral protein convertase subtilisin/kexin type 9 ORR = overall
Slide 31: Continued leadership in Sustainability
A PPE N D I X | Sustainability Highlights Continued leadership in Sustainability Accelerating bold, scalable action through collaboration Driving bold Demonstrating decarbonisation our commitment TASKFORCE on Early NATURE-RELATED to nature by bringing FINANCIAL in 2023: nature more prominently DISCL
Slide 32: Oncology – Truqap launch reinforces breast cancer leadership
A PPE N D I X | Oncology tumour maps Oncology – Truqap launch reinforces breast cancer leadership HR+ metastatic breast cancer Truqap poised to redefine 2L HR+, potential SoC for altered tumours 1st-line 2nd-line 3rd-line 4th-line+ 80k 65k 55k 50k ~28k patients diagnosed, treated with 2L HR+ disease
Slide 33: AstraZeneca in Lung Cancer
A PPE N D I X | Oncology tumour maps AstraZeneca in Lung Cancer Ambition for >50% of lung cancer patients to be eligible for AZN medicine by 2030 metastatic resectable Stg. I-III unresectable Stg. I-II Stg. III 1L 2L+ Leading the future of Est. epi (G7) ~200K ~30K ~70K ~350K ~290K lung cancer treatm
Slide 34: AstraZeneca in Breast Cancer
A PPE N D I X | Oncology tumour maps AstraZeneca in Breast Cancer Ambition to eliminate breast cancer as a cause of death established SoC Early Metastatic Neoadjuvant Adjuvant 1st line 2nd line 3rd line 4th line + Est. epi (G7) 540k 125k 90k 65k 55k Enhertu ± THP NST→ residual disease → HER2-positiv
Slide 35: AstraZeneca in Breast Cancer
A PPE N D I X | Oncology tumour maps AstraZeneca in Breast Cancer Ambition to eliminate breast cancer as a cause of death Early Metastatic Neoadjuvant Adjuvant 1st line 2nd line 3rd line 4th line + Est. epi (G7) 405k 80k 65k 55k 50k Current SoC drives Camizestrant to replace ET PIK3CA/AKT1/PTEN alte
Slide 36: Emerging Markets – FY 2023 Total Revenue
A P P E N D I X | FY 2023 Emerging Markets Emerging Markets – FY 2023 Total Revenue +9% at CER to $12.0bn, +20% at CER ex-COVID-19 medicines 4,000 3,500 3,000 2,500 Total Revenue ($m) 2,000 1,500 1,000 500 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 China Emerging Markets ex-China COVID-19 medicines
Slide 37: FY 2023 Reconciliation of Reported to Core Financial Measures
A PPE N D I X | FY 2023 Financial Highlights FY 2023 Reconciliation of Reported to Core Financial Measures Intangible Asset Acquisition of Reported Restructuring Amortisation & Other1 Core2 Alexion Impairments $m $m $m $m $m $m Gross Profit 37,543 109 32 119 (3) 37,800 Distribution Expense (539) - -
Slide 38: Q4 2023 Reconciliation of Reported to Core Financial Measures
A PPE N D I X | FY 2023 Financial Highlights Q4 2023 Reconciliation of Reported to Core Financial Measures Intangible Asset Acquisition of Reported Restructuring Amortisation & Other1 Core2 Alexion Impairments $m $m $m $m $m $m Gross Profit 9,716 (24) 8 37 1 9,738 Distribution Expense (145) - - - -
Slide 39: Prudent treasury risk-management policies
A PPE N D I X | Treasury Policy 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
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