AstraZeneca PLC · LSE:AZN
AstraZeneca — Debt Investor Presentation (July 2022)
35 slides from AstraZeneca's debt investor presentation, Jul 29, 2022
Slide 1: Fixed-income investor update
Fixed-income investor update 29 July 2022
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 HY 2022 – robust growth Increased Total Revenue guidance Maintaining innovation and pipeline delivery Continued investment in clinical stage pipeline Well positioned to deliver industry-leading growth 2025+ Longer-term growth fueled by existing portfolio and new innovative m
Slide 5: Business update
Business update 5
Slide 6: H1 2022: key updates
H1 2022: key updates Progress against our strategic objectives Robust growth Broad-based performance Science-led innovation Supported by diverse portfolio Delivering value to patients Key developments • Farxiga DELIVER Phase III data readout • Total Revenue $22.2bn (+48%) • Oncology $7.5bn (+22%) •
Slide 7: Q2 2022 Total Revenue performance
Q2 2022 Total Revenue performance Strength and resilience from diverse portfolio and broad revenue base across geographies Growth across disease areas Growth across geographies Total Revenue ($m) Total Revenue ($m) Q2 2022 | % Disease Area Q2 2022 | % Geography 12,000 12,000 10,000 10,000 Rare EM US
Slide 8: Strong 2022 outlook, well positioned for growth 2025+
AstraZeneca Strong 2022 outlook, well positioned to deliver industry-leading growth 2025+ Pipeline momentum Well positioned to deliver growth 2025+ Key upcoming Phase III readouts Industry-leading portfolio and pipeline H2 2022 Robust lifecycle Innovative late- Strategic business Attractive loss of
Slide 9: Investing efficiently to deliver long-term sustainable growth
AstraZeneca Investing efficiently to deliver long-term sustainable growth Unprecedented Data-driven expansion for Investment in discovery pipeline delivery high value opportunities and new technology In the year to date: • Dato-DXd • ADCs • 13 Phase III starts • Enhertu • Cell therapy • 5 positive p
Slide 10: Oncology: H1 2022
Oncology: H1 2022 Total Revenue $7.5bn, +22%, increasing product sales and collaboration revenue 4,000 H1 2022: key dynamics 3,500 • Tagrisso, Imfinzi and Lynparza double-digit Product Sales growth; Calquence 3,000 87% growth; Enhertu revenues >2x H1 2021 • Double-digit Product Sales growth across U
Slide 11: Oncology: Q2 2022 R&D highlights
Oncology: Q2 2022 R&D highlights Exceptional data at ASCO, new T-cell engager for haematology Enhertu capivasertib TNB-486 Phase III DESTINY-Breast04 Phase II FAKTION CD19xCD3 T-cell engager TNB-486 anti-CD3_F2B Flic Ab (CD19 x CD3_F2B) anti-CD19 UniAb • Establishes Enhertu as the new standard • In
Slide 12: Oncology: Q2 2022 R&D highlights
Oncology: Q2 2022 R&D highlights Showcasing the next advancement in lung cancer treatment at WCLC 2022 Tagrisso and Orpathys Dato-DXd Key upcoming news flow Phase II SAVANNAH Phase Ib TROPION-Lung02 2023 Tagrisso | EGFRm NSCLC 1L (FLAURA2) Tagrisso | NSCLC unresectable Stg. III (LAURA) Dato-DXd | NS
Slide 13: BioPharmaceuticals: H1 2022
BioPharmaceuticals: H1 2022 Farxiga’s second blockbuster quarter with $1.1bn revenues CVRM R&I V&I $4.6bn, +19% $3.0bn, +3% $2.8bn, >2x 2,500 1,800 2,500 1,600 2,000 2,000 Total Revenue ($m) 1,400 1,200 1,500 1,500 Total Revenue ($m) Total Revenue ($m) 1,000 800 1,000 1,000 600 500 400 500 200 0 0 0
Slide 14: BioPharmaceuticals: Q2 2022 R&D
BioPharmaceuticals: Q2 2022 R&D Positive Phase III trial results for Farxiga, eplontersen Key upcoming news flow H2 2022 Tezspire | severe asthma reg. decision (EU, JP) Farxiga: HFpEF (DELIVER) • Statistically significant and clinically meaningful reduction in CV mortality, nirsevimab | RSV reg. dec
Slide 15: Emerging Markets: H1 2022
Emerging Markets: H1 2022 Total Revenue $6.2bn, +16% including Vaxzevria1 Emerging Markets, +16%2 China, -5%; ex-China EM, +46% 4,000 • Oncology $1.8bn, +12%: Tagrisso +17%, Lynparza +32% 3,500 Q2 2022 | % EM Total Revenues Vaxzevria • CVRM $2.1bn, +12% pro forma: Farxiga +50% 3,000 7% 2,500 • R&I $
Slide 16: Rare Disease: H1 2022
Rare Disease: H1 2022 Strong initial demand for Ultomiris in gMG from both switch and naïve patients Rare Disease Q2 2022: key dynamics Total Revenue $3.5bn, +10% pro forma1 H1 2022 2,000 • Durable growth C5 franchise (Soliris + Ultomiris), +9%1 1,800 • Soliris, 2%1 slowing growth reflecting success
Slide 17: Rare Disease: R&D highlights
Rare Disease: R&D highlights Remarkable results from CHAMPION-NMO Phase III for Ultomiris in NMOSD Key upcoming news flow 2022 Koselugo | NF1-PN reg. decision (JP) Ultomiris | gMG reg. decision (EU, JP) Ultomiris | NMOSD reg. submission (US, EU, JP) Soliris | GBS (JP) 2023 Soliris | gMG reg. decisio
Slide 18: Q2 2022 ESG performance highlights
Q2 2022 ESG performance highlights Access to healthcare Environmental protection Ethics and transparency 6.3m 1st Top 50 lives saved during the first year of Vaxzevria of its kind ground source heat pump – which is companies for Diversity, as recognised by Diversity Inc., roll-out, more than any oth
Slide 19: 2022 guidance (CER)
2022 guidance (CER) Overall business strength, improved COVID-19 medicines outlook Total Revenue • Total Revenue from COVID-19 medicines anticipated to be broadly flat vs. 2021 “a high teens” “low twenties” % increase % increase • Core Operating Expense expected to increase by a mid-to- high teens p
Slide 20: Financial update
Financial update
Slide 21: Reported Profit and Loss
Reported Profit and Loss Continued strong top-line growth CER CER H1 2022 % total Q2 2022 % total change change $m revenue $m revenue % % Total Revenue 22,161 48 100 10,771 37 100 - Product Sales 21,610 47 98 10,630 38 99 - Collaboration Revenue 551 130 2 141 (20) 1 Gross margin 69.9% -4 pp 71.8% -2
Slide 22: Core Profit and Loss
Core Profit and Loss Continued operating leverage CER CER H1 2022 % total Q2 2022 % total change change $m revenue $m revenue % % Total Revenue 22,161 48 100 10,771 37 100 - Product Sales 21,610 47 98 10,630 38 99 - Collaboration Revenue 551 n/m 2 141 (20) 1 Gross margin 81.1% +6 pp 82.9% +8 pp Oper
Slide 23: Net debt and capital allocation priorities
Net debt and capital allocation priorities Continued improvement in cash flow from operations Net debt Capital allocation priorities $bn • Strong investment grade credit rating • Reinvestment in the business • Value-enhancing business development 1 • Progressive dividend policy3 Net Debt/EBITDA: 3.5
Slide 24: Net debt position
Net debt position 30-Jun-22 31-Dec-21 $m $m Gross debt (29,528) (30,781) Cash & cash equivalents 4,817 6,329 Other investments 70 69 Net derivative financial instruments (48) 61 Closing net debt 1 (24,689) (24,322) 1. Net debt is a non-GAAP measure. The equivalent GAAP measure to Net Debt is ‘liabil
Slide 25: Liquidity, debt and rating summary
Liquidity, debt and rating summary • Strong liquidity at 30 June 2022 • Group cash and investments of $4.9bn • Undrawn $4.9bn committed bank facilities which mature in 2025 • Access to diverse sources of funding through US and European term debt and commercial paper programmes Utilisation as at Prog
Slide 26: Smooth bond maturity profile with eight-year average life
Smooth bond maturity profile with eight-year average life Debt Maturity Profile at 30 June 2022 1 6,000 5,000 4,000 $m 3,000 2,000 1,000 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2037 2042 2045 2048 2050 2051 USD Commercial Paper Overdrafts, finance leases & bank collateral EUR GBP Term ba
Slide 27: Fixed-income investor update
Fixed-income investor update 29 July 2022
Slide 28: AstraZeneca: 2025+
AstraZeneca: 2025+ Delivering growth through innovation Robust life-cycle Innovative Strategic business Attractive management late-stage pipeline development LoE profile Supports durable, Continued investment in Recent clinical stage US LoE for growing revenue base clinical stage pipeline business d
Slide 29: AstraZeneca Chair Appointment
AstraZeneca Chair Appointment Michel Demaré to succeed Leif Johansson as AstraZeneca Chair effective April 2023 AstraZeneca Non-Executive Board footnote Member since 2019 • Audit Committee Member since 2019 • Renumeration Committee Chair since August 2020 • Chair ad hoc Advisory Committee on Vaxzevr
Slide 30: Appendix
Appendix
Slide 31: Pipeline catalysts for 2022 - 2023
APPENDIX | Pipeline Milestones since Q1 2022 Pipeline catalysts for 2022 - 2023 Oncology BioPharmaceuticals Rare Disease H2 2022 H1 2023 H2 2023 Tagrisso – NSCLC (adjuvant) (ADAURA) (JP) Lynparza – ovarian cancer (1L) (PAOLA-1) (CN) Soliris – gMG (CN) Imfinzi – biliary tract cancer (TOPAZ-1) Koselug
Slide 32: HY 2022 Reconciliation of Reported to Core Financial Measures
APPENDIX | Reported to Core reconciliation HY 2022 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 15,652 81 16 2,320 - 18,069 Distribution Expense (254) 1 - -
Slide 33: Q2 2022 Reconciliation of Reported to Core Financial Measures
APPENDIX | Reported to Core reconciliation Q2 2022 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 7,773 30 8 1,139 - 8,950 Distribution Expense (129) - - - - (
Slide 34: Prudent treasury risk-management policies
APPENDIX | Risk management 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 centrall
Slide 35: Use of AstraZeneca slides from conference calls and webcasts
Use of AstraZeneca slides from conference calls and webcasts 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 available to th