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things, statements about expected revenues, margins, earnings per share or other financial or other measures. Although we believe our expectations are based on
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anti-bribery and anti-corruption legislation; and the risk of failure of information technology and cybercrime. Nothing in this presentation / webcast should be construed
as a profit forecast.
2
Todays presenters
3
Agenda
Overview
Growth Platforms
Finance
4
Highlights
FY expectations met; pipeline-driven transformation continues
Business & Financials
Total Revenue primarily reflected Crestor generics, lack of US FluMist and the tail of the US Nexium loss of exclusivity
EPS supported by continued active cost management and sharper focus on three therapy areas
Core R&D up by 5%; continued pipeline investment and two recent acquisitions
Core SG&A down by 9%; in line with commitments
2017 guidance
Total Revenue: Low-to-mid single-digit percentage decline
Core EPS: Low-to-mid teens percentage decline
Growth rates at CER (Constant Exchange Rates) and for FY unless otherwise stated. Guidance at CER
5
Highlights; continued
FY expectations met; pipeline-driven transformation continues
Pipeline in Q4
Oncology Durvalumab - bladder cancer: Regulatory submission (US), Priority Review (US)
Tagrisso - lung cancer (AURA3 trial): Regulatory submissions (US, EU),
Priority Review (US)
Faslodex - breast cancer (1L): Regulatory submissions (US, EU)
Cardiovascular & Bydureon - type-2 diabetes: Positive Phase III trial DURATION-7 (with insulin)
Metabolic Diseases
6
Total Revenue: Inflection point approaching
New AstraZeneca is emerging from patent losses
$bn
30,000
25,000
US patent losses
(Crestor/Nexium/Seroquel)
20,000
Externalisation
15,000 Other out-of-patent medicines
(outside Emerging Markets) Emerging Markets
(established medicines)
10,000
Respiratory
+6% FY
5,000 Oncology
durvalumab /
Tagrisso
durva + treme
NSCLC 1L
NSCLC1 1L
FLAURA data
MYSTIC data
durvalumab
acalabrutinib
Lynparza
blood cancers
2012 2013 2014 2015 2016 2017E multiple cancers
fast-to-market
data readouts
opportunity
acalabrutinib PT010
blood cancers COPD / asthma
moxetumomab
leukaemia
selumetinib
thyroid cancer
Other
Lynparza2 anifrolumab
multiple cancers lupus
Tagrisso1,2 AZD3293
lung cancer Alzheimers disease
Overview
Growth Platforms
Finance
10
Growth Platforms: Stable performance overall
Emerging Markets improving; strong growth in Oncology
0% 0%
Brazil +2%
FY 2012 FY 2013 FY 2014 FY 2015 Q4 2016 FY 2016
China Challenging conditions in some markets
22%
25%
19%
12% 10% Saudi Arabia; Venezuela
20% 17% 10% 8%
15% New medicines/pipeline well positioned
8%
15%
6%
10% China approvals expected for Forxiga (H1 2017)
4%
5% and Tagrisso (H2 2017)
2%
0% 0%
FY 2012 FY 2013 FY 2014 FY 2015 Q4 2016 FY 2016
Sep-15
Oct-15
Nov-15
Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
Oct-16
Nov-16
3,000
800 -10% Europe -4%
-13% Volume growth with overall stable
600 2,000 Europe market share volume competitive environment
400 Symbicort Competitor Continued launches of new medicines
32.5%
1,000 40% Q4 growth 5%
200
20%
25.4% Emerging Markets +17%
0 0
Q4 2016 FY 2016 0% Increase in market uptake continues
Sep-15
Oct-15
Nov-15
Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
Oct-16
Nov-16
Pulmicort +21%
Symbicort Pulmicort Others Symbicort +10%
Absolute values at actual exchange rates. Growth rates at CER and for FY
unless otherwise stated Source: QuintilesIMS
14
Respiratory: Bevespi Aerosphere launched
First Pearl medicine available in the US for COPD1
1. Bevespi is indicated for the long-term, maintenance treatment of airflow obstruction in patients with COPD, including chronic bronchitis
and/or emphysema
2., 3., 4., 6. References available upon request
5. Improvements in lung function relative to its individual components and placebo in two 24-week pivotal trials
15
Diabetes
Global growth with focus on Farxiga
Farxiga largest AstraZeneca Farxiga global leader in
Growth in all regions
Diabetes medicine SGLT2 class by volume
$m
US +5%
700 3,000 Farxiga Competitor 1
Growing market, but intense
+3% Competitor 2 competition for market share
600 +11% 50%
2,500 41.8%
-22% 45% Farxiga +75% from improved
-19% 40%
500 -8%
2,000 0% 35% access and market-share gains
30% 24.6%
400 25%
-21% 1,500 20% Europe +15%
-6% 24.5%
300 15%
10%
Strong growth in focus medicine
200 +57%
1,000 5% Forxiga (+52%); and Bydureon
0%
+72% (+23%)
Sep-15
Oct-15
Nov-15
Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
Oct-16
Nov-16
500
100 Forxiga leading the SGLT2 class
0 0
Q4 2016 FY 2016 Emerging Markets +25%
Strong growth in Forxiga (+96%)
Farxiga Onglyza Bydureon Byetta
Absolute values at actual exchange rates. Growth rates at CER and for FY
unless otherwise stated Source: QuintilesIMS
16
Japan
Performance reduced by April price cuts; transformation underway
Q4 Product Sales reduced by Solid in-market performance Tagrisso starting to change
Crestor inventory reductions improved market-share rank the Japanese business
$m $m
#6
700 2,500 45
-3% 40
-5%
600 39
2,000 -5% 35
-8%
500
2016 AstraZeneca position in 30
Japan market company rankings
1,500 25 28
400
20
300 +7% 15
+27% 1,000
#12
-4% 15
200 +1% 10
500 5
100 -15% 0%
2012 AstraZeneca position in 0
Q1 2016
0 Q2 2016 Q3 2016 Q4 2016
0 0 Japan market company rankings
Q4 2016 FY 2016
Long-term target for Japan:
Crestor Nexium Symbicort Others Low single-digit growth
Absolute values at actual exchange rates. Growth rates at CER and for FY
unless otherwise stated Source: QuintilesIMS 1. NRDL = National Reimbursement Drug List
18
New Oncology
Launches progressing well
Tagrisso Tagrisso 2016 Lynparza
(lung cancer) key milestones (ovarian cancer)
$m $m
160
$423m 250
100
80
46 150
40
50
20
0
12,000 0
Q1 2016 Q2 2016 Q3 2016 Q4 2016 Number of patients treated with Tagrisso FY 2015 FY 2016
Overview
Growth Platforms
Finance
20
Reported Profit & Loss
Total Revenue
0
Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16
5% 4%
6,000
5,000
28%
FY 2017 Core R&D costs are expected
12% 29%
4,000
20% 28%
to be at a similar level to FY 2016
25%
3,000 24%
32%
23%
2,000
19%
43%
42%
1,000 37%
29%
0
2013 2014 2015 2016
Autoimmunity, neuroscience & infection Respiratory
Guidance at CER
26
Agenda
Overview
Growth Platforms
Finance
27
Q4 late-stage pipeline highlights
Main therapy areas
Cardiovascular &
Oncology Respiratory
Metabolic Diseases
Acalabrutinib Acalabrutinib
Phase I/II trial: Monotherapy in Phase I/II trial: Monotherapy in
patients intolerant to ibrutinib patients with Richters transformation
Tagrisso Durvalumab
Phase III AURA3 trial: 2L T790M Phase II ATLANTIC trial: 3L+
NSCLC metastatic NSCLC
Faslodex
Phase III FALCON trial: 1L hormone-
receptor positive advanced breast
cancer
29
Lung cancer: Tagrisso
First randomised Phase III trial to demonstrate superiority
AURA3 - 2L T790M NSCLC
Investigator assessment2 PFS by Tagrisso Chemo
investigator (N=279) (N=140)
Median PFS,
10.1 4.4
months (95%
(8.3; 12.3) (4.2; 5.6)
CI)
0.30 (0.23; 0.41)
HR (95% CI)
p<0.001
Tagrisso
US EU
Priority Review
PFS1 HR 0.30 (95% CI 0.23; 0.41), p<0.001; median PFS 10.1 vs. 4.4
months
1. PFS = Progression-Free Survival
2. Analysis of PFS by BICR was consistent with the investigator-based analysis: HR 0.28 (95% CI 0.20; 0.38), p<0.001; median PFS 11.0 vs. 4.2 months
Source: WCLC 2016, abstract PL03.03
30
Lung cancer: IO Phase III trials overview
Comprehensive programme across the disease
ADJUVANT PACIFIC MYSTIC NEPTUNE PEARL *NEW* ARCTIC
= fully recruited
Regulatory submission Lynparza - ovarian cancer (2L) Lynparza - breast cancer Lynparza - ovarian cancer (1L)
acalabrutinib - blood cancer (US)1 durvalumab - lung cancer (PACIFIC) (US) Tagrisso - lung cancer (1L)
Bydureon - autoinjector (US) durva +/- treme durva +/- treme
Bevespi - COPD (EU) - lung cancer (MYSTIC) - head & neck cancer (KESTREL)
benralizumab - severe, uncontrolled asthma (JP) - lung cancer (ARCTIC) - head & neck cancer (EAGLE)
- bladder cancer (DANUBE)
moxetumomab - leukaemia
selumetinib - thyroid cancer
Brilinta - T2D/CAD2
Bydureon - CVOT3
roxadustat - anaemia
tralokinumab - severe, uncontrolled asthma
Duaklir - COPD (US)
PT010 - COPD
Key Phase III/II* data Lynparza - breast cancer Lynparza - ovarian cancer (1L) durva +/- treme
durva +/- treme Tagrisso - lung cancer (1L) - lung cancer (NEPTUNE)
readouts - lung cancer (MYSTIC) (mid-2017) durvalumab - lung cancer (PACIFIC) - head & neck cancer (EAGLE)
- lung cancer (ARCTIC) durva +/- treme - head & neck cancer (KESTREL) - bladder cancer (DANUBE)
acalabrutinib - blood cancer*1 moxetumomab - leukaemia selumetinib - thyroid cancer
tralokinumab - severe, uncontrolled asthma Brilinta - T2D/CAD
Bydureon - CVOT
1. Potential fast-to-market opportunity ahead of randomised, controlled trials roxadustat - anaemia4
2. T2D/CAD = Type-2 diabetes/Coronary Artery Disease PT010 - COPD
3. CVOT = Cardio-Vascular Outcomes Trial anifrolumab - lupus
4. AstraZeneca-sponsored trials
33
Agenda
Overview
Growth Platforms
Finance
34
Pipeline-driven transformation on track
New AstraZeneca emerging from patent cliff
35
Q&A
36
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