Astrazeneca Plc · LSE:AZN
Astrazeneca — IPO Roadshow (August 2020)
35 slides from Astrazeneca's IPO roadshow presentation, Aug 3, 2020
Slide 1: Fixed-income investor update, 3 August 2020
Fixed - income investor update 3 August 2020
Slide 2: Forward-looking statements cautionary statement
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 with respect to the operat
Slide 3: Non-GAAP measures and disclaimer
Non - GAAP measures This presentation contains financial measures that are not calculated in accordance with generally accepted accounting principles (“GAAP”) . These non - GAAP financial measures include net debt as well as our core financial measures and constant exchange rate (CER) growth rates .
Slide 4: Transaction highlights
AstraZeneca PLC 4 SEC - registered Senior, Unsecured $ Benchmark Long 5 year (April 2026), 10 year, 30 year A3 (stable) / BBB+ (stable) • Issuer: • Type of offering: • Ranking: • Size: • Tenor: • Expected ratings: • Use of Proceeds: General Corporate Purposes (which may include the refinancing of ex
Slide 5: Key messages
Another period of improving the top line, operating leverage and cash Continuing the focus on the pipeline and growth through innovation Financial priorities and guidance remain unchanged Balanced and diversified company – by geography, therapy area, specialty/primary 5 Key messages
Slide 6: Business update
AstraZeneca What science can do Business update
Slide 7: Key highlights H1 2020
Key highlights Total revenue up by 14%; modest benefit from COVID - 19 1 stocking Strong revenue performance : new medicines (+45%) 2 ; Oncology (+31%), New CVRM 3 (+11%), Respiratory & Immunology (+7%) and Emerging markets (+15%) Core operating profit up by 23% despite lower OOI 4 ( - 13%) Core EPS
Slide 8: Increasing contribution from newest launch medicines
Increasing contribution from newest launch medicines bodes well H1 2020: total revenue +14%; new medicines leading Strong revenue New medicines growth continued drove growth $m H1 2020: +$2.0bn incremental revenue of the new medicines compared to H1 2019 1 Oncology New CVRM Respiratory & Immunology
Slide 9: H1 2020: continued strong, diversified performance
Q2 2020 $m change % ratio % H1 2020 $m change % ratio % 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 & Immunology 1,117 (8) 19 2,668 7 22 Other medicines 1,169 (2) 19 2,329 (4) 19 Emerging markets 2,048 12 34 4,319 14 35 - EM 1
Slide 10: Tagrisso and Imfinzi
Tagrisso : 45% growth Approvals 86 (1L) and 89 (2L) 1 Europe and EMs continued strong growth Tagrisso and Imfinzi Imfinzi : 52% growth Approvals 62 3 (NSCLC 4 ), 8 3 (ES - SCLC), 17 3 (UC 5 ) $m $m US Europe Established Rest of World (RoW) Emerging markets Total revenue at actual exchange rates; cha
Slide 11: Lynparza: continued strong growth, global expansion
Lynparza Continued strong growth, global expansion Lynparza 60% growth Approvals 75 (ovarian), 67 (breast), 38 (pancreatic) and 1 (prostate cancer) • US +55% (50% of total) 1st - line OC 1 drove growth • Europe +56% SOLO - 1 trial OC use drove growth • Emerging markets +117% China: OC launch support
Slide 12: Calquence and Enhertu
Calquence inflection continued; Enhertu launch progressed Calquence and Enhertu • US $36m $77m in - market sales by Daiichi Sankyo; ~1/3 share of patients in 3L setting • Japan Launched; small royalty to AstraZeneca • Global $195m; US $193m • US CLL Now ~1/3 of new patient starts and ~70% of demand
Slide 13: BioPharmaceuticals: New CVRM
Diabetes growth improved during Q2 (+8%) BioPharmaceuticals: New CVRM • Brilinta +17% : growth in all regions; majority of sales from acute setting • Farxiga +21% US: - 12%; unfavourable price offset strong CVOT, HF volume growth Ex - US (72% of total) Europe: +29%; strong volume growth; #1 SGLT2 in
Slide 14: BioPharmaceuticals: Respiratory & Immunology
Pulmicort hit by COVID - 19; other Respiratory in solid growth BioPharmaceuticals: Respiratory & Immunology • Europe +8% Symbicort (+4%); regional performance driven by Fasenra (+102%) • Emerging markets - 17% Pulmicort ($371m, - 34%) hit by lower paediatric nebulisation use (~1/2 of market) in Chin
Slide 15: Emerging markets: growth further diversified
Growth further diversified Emerging markets Total revenue EMs +15%, ex - China EMs +15%, China +14% Diversified growth: AP 1 +7%, MEA 2 +12%, LA 3 +15%, Russia +67% • New medicines +79% 4 32% of total revenue; $0.7bn incrementally • Therapy areas Oncology +46%: Tagrisso ($595m) New CVRM +46%: Forxig
Slide 16: 2020 guidance unchanged
2020 guidance unchanged Total revenue Increase by a high single - digit to a low double - digit percentage Core EPS Increase by a mid - to high - teens percentage Guidance is at CER. AstraZeneca recognises the heightened risks and uncertainties from the impact of COVID - 19 referred to in the result
Slide 17: Regulatory approvals and submissions
Medicine Indication (geography) Regula t ory approvals Lynparza Farxiga Brilinta Bevespi Breztri ovarian cancer (1L 1 , HRD+ 2 ) (PAOLA - 1) (US) pancreatic cancer (1L, BRCAm 3 ) (EU) prostate cancer (2L 4 , HRRm 5 ) (US) HF 6 CVOT 7 (US) CAD 8 /T2D 9 CVOT (US) COPD 10 (CN) COPD (US) Regulatory subm
Slide 18: Late-stage pipeline events 2020-2021
Late - stage pipeline events in the 2020 - 2021 timeframe Busy news flow continues; underpinning consistent revenue growth H2 2020 H1 2021 H2 2021 R e gu l at o r y decision Imfinzi - ES - SCLC (EU, JP) Lynparza - OC (1L) (PAOLA - 1) (EU, JP); breast (BRCAm) (CN); prostate cancer (2L) (EU) Enhertu -
Slide 19: Financial update
Astrazeneca What science can do Financial update
Slide 20: Reported profit and loss
Reported profit and loss Absolute values at actual exchange rates; changes at CER. Gross margin reflects gross profit derived from product sales, divided by product sales. 1. Includes distribution expenses 2. Percentage points. 20 H1 2020 $m change % % total r e v en u e Q2 2020 $m change % % total
Slide 21: Core profit and loss
Core profit and loss Absolute values at actual exchange rates; changes at CER. Gross margin reflects gross profit derived from product sales, divided by product sales. 21 H1 2020 $m change % % total r e v en u e Q2 2020 $m change % % total r e v en u e Total revenue 12,629 14 100 6,275 11 100 - prod
Slide 22: Improvement in operating cash flow
$0.7bn improvement in operating cash flow Cash flow • Net cash from operating activities $1,179m versus $491m (H1 2019) + improved underlying business performance - working capital, incl. higher inventory • Cash before financing activities $1,336m versus - $298m + lower purchase of intangible assets
Slide 23: H1 2020 results support the strategic journey
H1 2020 results support the strategic journey Financial priorities Revenue growth +14% growth in total revenue in H1 2020 Operating leverage • 57% ratio of core operating expenses to total revenue (vs. 61% in H1 2019) • 23% growth in core operating profit • 29% core operating profit margin despite 1
Slide 24: Net debt position
Net debt position the Acerta Pharma put - option liability of $2,219m (31 December 2019: $2,146m) shown in non - current other payables. Further details are available in our H1 results announcement published on 30 July 2020. 24 1. Net debt is a non - GAAP measure. The equivalent GAAP measure to net
Slide 25: Liquidity, debt and rating summary
25 Liquidity, debt and rating summary • Strong liquidity at 30 June 2020 • Group cash and investments of $6.1bn • Undrawn $4.1bn committed bank facilities ($3.4bn of which mature in 2022) • Access to diverse sources of funding through US and European debt programme, Euro and USCP programme • The Boa
Slide 26: Smooth bond maturity profile
Smooth bond maturity profile with 9 ½ years average life 1. Notional bond values. FX converted at 30 June 2020 spot rates (USD/EUR 0.89; USD/GBP 0.81). Current portion of leases of $174m are included in 2020, whilst non - current Leases of $465m have been excluded from the chart. Debt Maturity Profi
Slide 27: Summary
AstraZeneca What science can do Summary
Slide 28: AstraZeneca in summary
AstraZeneca in summary Pipeline - driven transformation 1. In H1 2020, speciality - care medicines comprised 53% of total revenue 2. Cardiovascular, Renal and Metabolism. Improving financials Nine blockbuster medicines Returned to sustainable revenue and earnings growth Focus on operating leverage a
Slide 29: Fixed-income H1 2020 appendix
Fixed - income investor update - H1 2020 3 August 2020
Slide 30: AstraZeneca
AstraZeneca What science can do
Slide 31: Geographic growth
Geographic growth Strong performance in all major regions US 33% of Product Sales Europe 19% of Product Sales Japan 10% of Product Sales Emerging Markets (ex - China) 13% of Product Sales China 21% of Product Sales FY 2020 Regional Product Sales as reported. Growth rates for H1 2020 vs H1 2019 at CE
Slide 32: H1 2020 Reconciliation of Reported to Core Financial Measures
Reported Restructuring Intangible Asset Amortisation & Impairments Dia b e t es Alliance Othe r 1 Core 2 $m $m $m $m $m $m Gross Profit 10,225 35 33 - 5 10,298 Distribution Expense (191) - - - - (191) R&D Expense (2,777) 16 49 - - (2,712) SG&A Expense (5,354) 45 809 152 (5) (4,353) Other Operating I
Slide 33: Q2 2020 Reconciliation of Reported to Core Financial Measures
Reported Restructuring Intangible Asset Amortisation & Impairments Dia b e t es Alliance Othe r 1 Core 2 $m $m $m $m $m $m Gross Profit 5,291 16 16 - - 5,323 Distribution Expense (104) - - - - (104) R&D Expense (1,389) 5 7 - 1 (1,376) SG&A Expense (2,635) 20 360 85 (6) (2,176) Other Operating Income
Slide 34: Prudent treasury risk-management policies
Prudent treasury risk - management policies 34 The Company operates with a centralised Treasury structure so that key Treasury risks are managed at a Group level. Liquidity Policy • Substantial level of available cash and unutilised credit facilities • Group funding centrally managed Investment poli
Slide 35: Use of AstraZeneca conference call, webcast and presentation slides
Use of AstraZeneca conference call, webcast and presentation slides 35 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