Slide 1: Q1 2018 Results
Q1 2018 Results Conference call and webcast for investors and analysts 18 May 2018
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 Mark Mallon Executive Director and Executive Vice President, Executive Vice President, Chief Executive Officer Oncology Business Unit Global Products & Portfolio Strategy, Global Medical Affairs, Corporate Affairs Marc Dunoyer Sean Bohen Executive Director and
Slide 4: Agenda
Agenda Overview Oncology Pancreatic beta cells at different stages of regeneration: AstraZeneca is investing in research that could CVRM, Respiratory, EMs stimulate the regeneration of beta cells in the pancreas with the aim of stopping the progression of, or reversing, the course of diabetes. Finan
Slide 5: Encouraging launches underpin 2018 return to growth
Encouraging launches underpin 2018 return to growth The pipeline-driven transformation of AstraZeneca continues Business & financials Product Sales declined 2%, as anticipated • Strong performance by newer medicines (+66%) and China • Impact of EU/JP loss of Crestor exclusivity and divestments (~2%)
Slide 6: The pipeline continues to deliver
The pipeline continues to deliver Q1 highlights from late-stage pipeline Pipeline news Oncology • Lynparza ovarian cancer 2L; tablets Approval (EU) breast cancer Regulatory submission acceptance (EU) • Tagrisso lung cancer 1L Approval (US) CHMP positive opinion (EU) Priority review status (JP) • Imf
Slide 7: Product Sales growth
2018: return to growth on track Momentum to improve during the year Q1 impacted by Crestor EU/JP; divestments Medicines that are impacting Comparisons easing as the year progresses Product Sales growth in 2018 Lynparza Tagrisso Imfinzi ongoing launch of tablet in ongoing launch in ongoing launch in
Slide 8: Product Sales: Oncology and China were the key drivers
Product Sales: Oncology and China were the key drivers Overall performance impacted by Crestor EU / JP and divestments Q1 2018 % Product % change $m Sales Product Sales 4,985 (2) 100 Oncology 1,230 33 25 New CVRM 900 8 18 Respiratory 1,181 (6) 24 Other 1,674 (19) 34 Emerging Markets 1,765 8 35 -of w
Slide 9: Product Sales: newer medicines show strength
Product Sales: newer medicines show strength >$0.4bn in additional sales; growth of 66% in Q1 2018 $m >$0.4bn 160 140 Total additional sales from the 120 newer medicines versus Q1 2017 100 80 60 40 20 0 Bevespi Calquence Fasenra Brilinta Lynparza Imfinzi Farxiga Tagrisso Absolute values at CER. 9
Slide 10: Product launches: positive leading indicators
Product launches: positive leading indicators Imfinzi: strong uptake Bydureon BCise: market-share Fasenra: taking significant reflects patient benefit gain by the competitive device share due to competitive profile 8,000 New-to-brand Rx market share, US New-to-brand Rx market share, US Estimated pat
Slide 11: Agenda
Agenda Overview Oncology Pancreatic beta cells at different stages of regeneration: AstraZeneca is investing in research that could CVRM, Respiratory, EMs stimulate the regeneration of beta cells in the pancreas with the aim of stopping the progression of, or reversing, the course of diabetes. Finan
Slide 12: Oncology: New medicines drove strong performance
Oncology New medicines drove strong performance Oncology Strong performances from the new medicines $m Product Sales Lynparza, Tagrisso, Imfinzi and Calquence 1,400 • Oncology +33% and 25% of total Product Sales 1,200 1,000 • New medicines contributed $0.3bn in additional 800 sales vs. Q1 2017 600 •
Slide 13: Lynparza: Expanding benefits to more patients
Lynparza Expanding benefits to more patients Three quarters of strong Approved in >50 Busy, ongoing $m growth: +100% in Q1 countries worldwide launch activity 140 • US +144% • Launching in the US for breast 120 Growth accelerated due to tablet cancer 100 formulation, the broad label in ovarian cance
Slide 14: Lung cancer: Tagrisso
Lung cancer: Tagrisso Strong 2nd-line business; ready for 1st-line approvals Strong performance in Approved in >75 1st-line approvals will $m all markets: +89% in Q1 countries worldwide expand patient benefit 400 350 • US +63% • Unprecedented 1st-line Higher testing rates and general progression-fre
Slide 15: Lung cancer: Imfinzi
Lung cancer: Imfinzi Encouraging start in unresectable Stage III NSCLC US lung approval visible Encouraging Unresectable Stage III $m Q1 Product Sales: $62m launch in the US lung cancer status • Approved 19 February • EU 70 Label reflects PACIFIC trial data Regulatory decision expected H2 60 2018 •
Slide 16: Haematology: Calquence and moxetumomab
Haematology: Calquence and moxetumomab Emerging franchise; initially in smaller indications Calquence Moxetumomab pasudotox $m Encouraging US launch Priority review granted 10 • Approved 31 October 2017 • First AstraZeneca/MedImmune 2nd-line mantle cell lymphoma, a antibody-drug conjugate fast-to-ma
Slide 17: New CVRM
New CVRM Brilinta and Farxiga delivered strong results Brilinta Product Diabetes Product Continued success $m Sales and growth $m Sales and growth of newer medicines 800 2% Brilinta +24% 600 300 -11% Bydureon • Continued double-digit growth 400 -19% Onglyza across all regions 20% Emerging Markets 20
Slide 18: Respiratory
Respiratory Competitive market; strong Fasenra launch Respiratory Product Encouraging US competitive; new medicines, $m Sales and growth Symbicort volume Emerging Markets encouraging 1,500 Symbicort 36.8% US -23% US 5-week NBRx • Symbicort (-28%); volume growth market share -6% -1% Others in price-c
Slide 19: Respiratory: Fasenra
Respiratory: Fasenra Encouraging US weekly new-to-brand prescriptions Competitor Fasenra $21m Q1 2018 Product Sales Launched Fasenra is now launched in the US, Japan and the EU (incl. Germany, Austria, Denmark, The Netherlands and Sweden) Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Source: IQVI
Slide 20: Emerging Markets
Emerging Markets China continued strongly China continued very strongly (+22%) All three main therapy Ex-China growth (-7%) impacted by divestments areas performed well 9% 12% 12% 8% Emerging Markets Emerging Markets 8% 8% 6% • Mid to high single-digit growth continued 4% • Growth ex-China reduced b
Slide 21: Agenda
Agenda Overview Oncology Pancreatic beta cells at different stages of regeneration: AstraZeneca is investing in research that could CVRM, Respiratory, EMs stimulate the regeneration of beta cells in the pancreas with the aim of stopping the progression of, or reversing, the course of diabetes. Finan
Slide 22: Reported Profit & Loss
Reported Profit & Loss Q1 2018 % Total % change $m Revenue Total Revenue 5,178 (9) 100 - Product Sales 4,985 (2) 96 - Externalisation Revenue 193 (67) 4 Gross Margin 77.3% (4) pp1 - Operating Expenses 3,817 (5) 74 - R&D Expenses 1,279 (16) 25 - SG&A Expenses 2,457 2 47 Other Operating Inc. & Exp. 46
Slide 23: Core Profit & Loss
Core Profit & Loss Q1 2018 % Total % change $m Revenue Total Revenue 5,178 (9) 100 - Product Sales 4,985 (2) 96 - Externalisation Revenue 193 (67) 4 Gross Margin 78.8% (4) pp - Operating Expenses 3,349 (1) 65 - R&D Expenses 1,240 (12) 24 - SG&A Expenses 2,028 6 39 Other Operating Inc. & Exp. 124 (64
Slide 24: Externalisation Revenue
Externalisation Revenue Q1 lower due to Initial Revenue Q1 reduced by Main highlights $m lower Initial Revenue 1,600 1,400 • Initial Externalisation Revenue $102m from partnering 1,200 legacy medicines 1,000 800 • Ongoing Externalisation Revenue $91m, mainly from 600 Merck collaboration (Lynparza US
Slide 25: Total Core operating expenses declined by 1%
Total Core operating expenses declined by 1% Core R&D: benefit from productivity initiatives Total Core operating $m expenses declined by 1% 2,000 • Core R&D declined by 12% 1,000 • Maintained activity level; benefit from productivity 0 improvements and Merck collaboration • FY 2018: continue to ant
Slide 26: 2018 guidance reiterated; unchanged capital allocation
2018 guidance reiterated; unchanged capital allocation Product Sales Capital allocation A low single-digit percentage increase priorities Investment in the business Core EPS Progressive dividend policy Strong, investment- grade credit rating $3.30 to $3.50 Immediately earnings-accretive, value-enhan
Slide 27: Agenda
Agenda Overview Oncology Pancreatic beta cells at different stages of regeneration: AstraZeneca is investing in research that could CVRM, Respiratory, EMs stimulate the regeneration of beta cells in the pancreas with the aim of stopping the progression of, or reversing, the course of diabetes. Finan
Slide 28: Oncology: good progress in lifecycle management
Oncology: good progress in lifecycle management Data from Spring congresses highlight steady progress Regulatory and other SGO1 Annual Meeting on AACR3 Annual Meeting Development progress Women’s Cancer ELCC4 • Approvals • MEDIOLA trial: Lynparza + Imfinzi • Lynparza - breast cancer - OS - Lynparza
Slide 29: Oncology: ASCO 2018 highlights
Oncology: ASCO1 2018 highlights Key data accepted at the annual meeting DNA Damage Immuno- Haematology Response Oncology & Other • Lynparza + abiratertone - prostate • Imfinzi monotherapy • Calquence - Waldenstrom cancer - Phase II Study 8 trial - unresectable Stage III NSCLC - Macroglobulinemia (WM
Slide 30: CVRM: Lokelma first approval; Diabetes focus on Farxiga
CVRM Lokelma first approval; Diabetes focus on Farxiga Regulatory and other Farxiga’s CVD-REAL 2 study at ACC1 Development progress Consistent with CVD-REAL 1 in 2017 • >400,000 patients treated with • Treatment with SGLT2 inhibitors SGLT2 inhibitors; ~75% with associated with a lower risk2 of • App
Slide 31: Late-stage pipeline news flow in 2018 and 2019
Late-stage pipeline news flow in 2018 and 2019 Unlocking and realising the potential of new medicines Q2 2018 H2 2018 2019 Regulatory decision Tagrisso - lung cancer (EU) Lynparza - breast cancer (JP) Lynparza - breast cancer (EU) Lokelma - hyperkalaemia (US) Tagrisso - lung cancer (JP) Imfinzi - lu
Slide 32: Agenda
Agenda Overview Oncology Pancreatic beta cells at different stages of regeneration: AstraZeneca is investing in research that could CVRM, Respiratory, EMs stimulate the regeneration of beta cells in the pancreas with the aim of stopping the progression of, or reversing, the course of diabetes. Finan
Slide 33: Encouraging launches underpin 2018 return to growth
Encouraging launches underpin 2018 return to growth Financials on track - commercial execution - guidance reiterated • Financials on track • Product Sales as anticipated – Strong execution of launches; offset by tail of Crestor EU/JP and divestments • Total Revenue impacted by lower Initial External
Slide 34: Q&A
Q&A
Slide 35: Encouraging launches underpin 2018 return to growth
Encouraging launches underpin 2018 return to growth Financials on track - commercial execution - guidance reiterated • Financials on track • Product Sales as anticipated – Strong execution of launches; offset by tail of Crestor EU/JP and divestments • Total Revenue impacted by lower Initial External
Slide 36: Q1 2018 Results
Q1 2018 Results Conference call and webcast for investors and analysts 18 May 2018