H1 2017 Results Conference call and webcast for investors and - PowerPoint PPT Presentation

H1 2017 Results Conference call and webcast for investors and analysts 27 July 2017

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, performance and financial condition of the Group, including, among other things, statements about expected revenues, margins, earnings per share or other financial or other measures. Although we believe our expectations are based on reasonable assumptions, any forward-looking statements, by their very nature, involve risks and uncertainties and may be influenced by factors that could cause actual outcomes and results to be materially different from those predicted. The forward-looking statements reflect knowledge and information available at the date of preparation of this document and AstraZeneca undertakes no obligation to update these forward-looking statements. We identify the forward-looking statements by using the words 'anticipates', 'believes', 'expects', 'intends' and similar expressions in such statements. Important factors that could cause actual results to differ materially from those contained in forward-looking statements, certain of which are beyond our control, include, among other things: the loss or expiration of, or limitations to, patents, marketing exclusivity or trademarks, or the risk of failure to obtain and enforce patent protection; effects of patent litigation in respect of IP rights; the impact of any delays in the manufacturing, distribution and sale of any of our products; the impact of any failure by third parties to supply materials or services; the risk of failure of outsourcing; the risks associated with manufacturing biologics; the risk that R&D will not yield new products that achieve commercial success; the risk of delay to new product launches; the risk that new products do not perform as we expect; the risk that strategic alliances and acquisitions, including licensing and collaborations, will be unsuccessful; the risks from pressures resulting from generic competition; the impact of competition, price controls and price reductions; the risks associated with developing our business in emerging markets; the risk of illegal trade in our products; the difficulties of obtaining and maintaining regulatory approvals for products; the risk that regulatory approval processes for biosimilars could have an adverse effect on future commercial prospects; the risk of failure to successfully implement planned cost reduction measures through productivity initiatives and restructuring programmes; the risk of failure of critical processes affecting business continuity; economic, regulatory and political pressures to limit or reduce the cost of our products; failure to achieve strategic priorities or to meet targets or expectations; the risk of substantial adverse litigation/government investigation claims and insufficient insurance coverage; the risk of substantial product liability claims; the risk of failure to adhere to applicable laws, rules and regulations; the risk of failure to adhere to applicable laws, rules and regulations relating to anti- competitive behaviour; the impact of increasing implementation and enforcement of more stringent anti-bribery and anti-corruption legislation; taxation risks; exchange rate fluctuations; the risk of an adverse impact of a sustained economic downturn; political and socio-economic conditions; the risk of environmental liabilities; the risk of occupational health and safety liabilities; the risk associated with pensions liabilities; the impact of failing to attract and retain key personnel and to successfully engage with our employees; the risk of misuse of social medial platforms and new technology; and the risk of failure of information technology and cybercrime. Nothing in this presentation / webcast should be construed as a profit forecast. 2

Presenters Mark Mallon Pascal Soriot Jamie Freedman Executive Director and Executive Vice President, Executive Vice President and Chief Executive Officer Global Products & Portfolio Head, Oncology Business Unit Strategy, Global Medical Affairs, Corporate Affairs Marc Dunoyer Sean Bohen Executive Vice President, Executive Director and Global Medicines Development Chief Financial Officer and Chief Medical Officer 3

Agenda Overview Growth Platforms Oncology Finance Pipeline and news flow Antibody that blocks inhibitory signals from the tumour to cells of the immune Closing and Q&A system, resulting in enhanced anti- tumour immunity 4

Highlights H1 2017: In line with expectations Business & financials Total Revenue declined as anticipated, reflecting mainly the tail impact of Crestor ’s and Seroquel XR ’s US loss of exclusivity Sales from Growth Platforms increased • Emerging Markets: Up 6%, some impact from economic conditions in LatAm/MEA 1 – China: Up 8%; Tagrisso off to a strong start • Respiratory: Continued to be impacted by US Symbicort • New CVMD 2 : Supported by Brilinta (+28%) and Farxiga (+22%) • Japan: Up 6%, supported by lapping of price cuts and strength of Tagrisso • New Oncology: Boosted by Tagrisso ($403m) EPS growth underpinned by cost management and Other Operating Income 2017 guidance reiterated 1. LatAm/MEA = Latin America and Middle-East & Africa. 2. CVMD = Cardiovascular & Metabolic Diseases. Growth at Constant Exchange Rates (CER) and for H1 2017, unless otherwise stated. Guidance at CER. 5

Highlights, continued Pipeline news summary Pipeline • Imfinzi Oncology bladder cancer Approval (US) Phase III PACIFIC: Met PFS 1 primary endpoint lung cancer Stage III lung cancer 1L Phase III MYSTIC: Did not meet PFS primary endpoint • Tagrisso lung cancer 1L Phase III FLAURA: Met primary endpoint • Faslodex breast cancer 1L Approval (EU, JP) • Lynparza ovarian cancer 2L Regulatory submission acceptance (EU, JP) • Bydureon Cardiovascular & type-2 diabetes CVOT 2 Phase III EXSCEL: Met primary safety objec- Metabolic Diseases tive; did not meet primary efficacy objective • Bevespi Respiratory COPD Regulatory submission (EU) • tralokinumab severe, uncontrolled Phase III STRATOS 1: Did not meet primary asthma endpoint; results now inform STRATOS 2 • Kyntheum Other psoriasis Approval (EU; received by partner) • Jean-Charles Soria, SVP, Research and Early Development, from Gustave Roussy Cancer Centre New scientist joiners • Geoffrey Kim, Head of Oncology Strategic Combinations, from US FDA IO franchise 1. PFS = Progression-free survival. 2. CVOT = Cardiovascular outcomes trial. Status since the results announcement on 27 April 2017. 6

Total Revenue: An inflection point approaching New AstraZeneca emerging visibly from patent losses $m 14,000 12,000 US patent losses 10,000 ( Crestor / Nexlum/Seroquel ) 8,000 Externalisation Other out-of-patent medicines (outside Emerging Markets) Emerging Markets (established medicines) 6,000 Respiratory 4,000 +4% H1 2017 Oncology 2,000 New CVMD ( Brilinta & Diabetes) 0 H1 2012 H1 2013 H1 2014 H1 2015 H1 2016 H1 2017 Absolute values at CER. Change at CER and for H1 2017, unless otherwise stated. 7

2017: Becoming a defining year Some of the key news flow Launches of new medicines opportunities in 2017 ✓ PDUFA from main therapy areas ✘ Q4 2017 benralizumab Imfinzi ZS-9 benralizumab ✓ bladder cancer hyperkalaemia asthma reg. decision reg. decision reg. decision ✘ ✓ ✓ ✓ Imfinzi / Tagrisso Imfinzi Imfinzi + treme NSCLC 1L NSCLC Stage III NSCLC 1 1L ✓ FLAURA PACIFIC PFS MYSTIC PFS ✓ acalabrutinib Lynparza blood cancers 2012 2013 2014 2015 2016 2017E multiple cancers fast-to-market data readouts opportunity 1. NSCLC = Non-small cell lung cancer. 8

Lynparza affirmed as the globally-leading PARP inhibitor Merck collaboration expands potential, in particular for IO combos • Establishes Lynparza as the preferred PARP- inhibitor backbone of future PD-1/PD-L1 combinations • Accelerates Lynparza ’s development with the leading PD-1 inhibitor in clinical trials, Keytruda • Financially-attractive total deal value of up to $8.5bn 9

Agenda Overview Growth Platforms Oncology Finance Pipeline and news flow Antibody that blocks inhibitory signals from the tumour to cells of the immune Closing and Q&A system, resulting in enhanced anti- tumour immunity 10

Growth Platforms: Focus further strengthened Q2 2017 % % Total H1 2017 % % Total $m change Revenue $m change Revenue Growth Platforms 3,723 1 74 7,295 3 70 Emerging Markets 1,442 2 - 3,004 6 - Respiratory 1,099 (9) - 2,280 (4) - New CVMD 1 872 3 - 1,670 4 - Japan 617 8 - 1,067 6 - New Oncology 2 301 99 - 537 n/m - 1. New CVMD comprises Brilinta and Diabetes. 2. New Oncology comprises Lynparza , Tagrisso , Iressa US and Imfinzi . Absolute values at actual exchange rates. Change at CER. 11