astrazeneca 2011

General PresentationGe e a ese tat o

February 2012

ContentsPPage

1. Corporate Strategy 3

2 FY 2011 Fi i l P f 72. FY 2011 Financial Performance 7

3. FY 2011 Key Product Performance 15

4 R&D U d t 454. R&D Update 45

5. Strategy update & Planning assumptions 2012+ 81

6 N fl 2011 996. News flow 2011 99

7. AZN - Historic performance & Shareholder returns 101

8 K i d t th d i 1068. Key industry growth drivers 106

9. Q4 Financial & Key Product Performance 124

10 I R l i 13610. Investor Relations contacts 136

11. Appendices 139

22

Corporate StrategyCo po ate St ategy

Strategy

Industry outlook

• Increasing and ageing populations• Expanding populations in new markets• Significant unmet medical need• Continued scientific and technological advance

Growth SectorGrowth Sector

• Decline in R&D productivityPressures onPressures on p y• Established market price pressure• Patent expiries and genericisation

Pressures on returns

Pressures on returns

• Increased R&D productivity opportunities• Adapting sales and marketing model

Leading players will continue toLeading players will continue to Adapting sales and marketing model

• Further cost reduction potential• Improved investment discipline

will continue to earn attractive

returns

will continue to earn attractive

returns

44Strategy

Our vision

AstraZeneca is

Focused

Innovation-driven

Global

Integrated

Global

Biopharma

OUR VALUES

55Strategy

Corporate Strategic priorities Making the

most meaningful difference to patient healththrough great medicines

Increase output • Innovation• Growth of current

Deliver the business

• Implement asset

BusinessShape

PeoplePipeline

• Increase output

• Drive productivity& efficiency- Disease area focus

Innovation

• Accountability

• Lean & agile

Growth of current products

• Successfully launch the new products

Implement asset strategy & LEAN

• Drive efficiencies in Sales & Marketing

d G&A- Reduce site footprint

• Collaboration- Externalisation- Build stronger

l ti hi

• Value orientation• Drive growth in emerging markets

• Develop innovative

and G&A

• Focus Capexon productivity improvements

relationshipwith payers

Manage for long term shareholder value

pchannels to meet customer needs

p

Our values

Manage for long-term shareholder value

666Strategy

FY 2011 Financial 0 a c aPerformance

Financial Performance

FY 2011 Summary

Financial performance• Revenue $33,591m (-2% CER)

Research & Development• Further approvals and launches of Brilique/BRILINTA

• Reflects loss of nearly $2bn from generic competition & further $1bn lost to the impact from government price interventions

• Core EPS $7 28 (+7% CER)

now approved in 64 counties and launched in 37• Nexium and Faslodex approved in Japan• Announced full results from SATURN

• Core EPS $7.28 (+7% CER)• Strong performance of Crestor, Symbicort,

Seroquel XR

• Market authorisation received in EU for KOMBOGLYZE™ in Q4

• On 19th of Jan 2012 FDA issued a complete response letter regarding the NDA for dapagliflozin

Shareholder returns• Dividend 2011 $2.80 (+10%)• Net cash distributions to shareholders

letter regarding the NDA for dapagliflozin• TC-5214 phase III studies, RENAISSANCE 3 & 2,

did not meet their primary endpoints• Announced the decision to discontinue olaparib’s Net cash distributions to shareholders

2011 +71% to $9.4bn vs. 2010 through net share repurchases of $5.6bn & $3.8bn through the payment of the second interim dividend from 2010 and the first dividend

development in serous ovarian cancer Other developments• Disposal of Astra Tech business to DENTSPLY

for appro imatel $1 8bn in cash completed in A g stdividend from 2010 and the first dividend from 2011

for approximately $1.8bn in cash completed in August 2011. Net proceeds added to share repurchases

88PerformanceFinancial Performance

Headline results FY 2011

FY 2011$m

FY 2010$m

CERActual

Revenue 33,591 33,269 +1% -2%

Core Operating Profit 13 167 13 603 -3% -4%Core Operating Profit 13,167 13,603 -3% -4%

Core EPS $7.28 $6.71 +9% +7%

R t t i ($0 63) ($0 62)Restructuring ($0.63) ($0.62)MedImmune/Merck amortisation ($0.32) ($0.29) Intangible Impairments ($0.01) ($0.29)Legal provisions ($0.07) ($0.39) E l B fit $0 40Employee Benefits - $0.40Astra Tech sale $1.08

Reported EPS $7.33 $5.60 +31% +29%Reported EPS $7.33 $5.60 31% 29%


Regional revenue performance FY 2011

CERFY 2011 CER

Global Revenue 33 591 -2% -599

CER%

FY 2011$m

CER$m

Global Revenue 33,591 2% 599

US 13,426 -2% -302

Western Europe 8,501 -11% -1,047

Established RoW 5 901 +4% +229Established RoW 5,901 +4% +229

Emerging Markets 5,763 +10% +521


Key brand revenue summary FY 2011

CERFY 2011

Crestor 6 622 +13%

CER%

FY 2011$m

Crestor 6,622 +13%

Seroquel 5,828 +8%Seroquel IR 4 338 +3%Seroquel IR 4,338 +3%Seroquel XR 1,490 +27%

Nexium 4,429 -12%Nexium 4,429 12%

Symbicort 3,148 +11%


Core margin: FY 2011

$mCER

growth % salesDelta vsPY CER

Core Gross Margin 27,619 0% 82.2 +130bps

Revenue 33,591 -2%

Distribution (346) -1% 1.0 0bps

C SG&A (9 918) 2% 29 5 10Core SG&A (9,918) -2% 29.5 -10bps

Core Other Income 845 -8% 2.5 -20bps

Core Pre-R&D Profit 18,200 0% 54.2 +100bps

Core R&D (5 033) +15% 15 0 -220bpsCore R&D (5,033) +15% 15.0 220bps

Operating Profit 13,167 -4% 39.2 -120bps


Cash generation: FY 2011

2011$m

2010$m

Opening net cash/(debt) 3,653 535

EBITDA 15 345 14 235EBITDA 15,345 14,235

Movement in working capital (897) 82

Tax & interest paid* (3,164) (2,612)

Other non-cash movements** (2,080) (463)

9,204 11,242

Tax settlements (1,383) (562)( , ) ( )

Net cash from operating activities 7,821 10,680

131313* Adjusted for Tax settlements, ** Including $1483 million from AstraTech disposal PerformanceFinancial Performance

Cash application: FY 2011

2011$m

Opening net cash/(debt) 3,653

Net cash from operating activities 7,821Net capex (1,195)Astra Tech Disposal Proceeds 1,772Dividends/Net share buy-back (9,370)Other movements 168Other movements 168

Closing net cash/(debt) 2,849

Gross debt (9,328)Cash/Cash equivalents and STIs 12,177


FY 2011 Key ProductFY 2011 Key Product Performance

Product Performance

Crestor FY 2011 Sales: $6,622m +13% CER • Global volume growth 2x statin market (12% vs

6%)

5,000

6,000

EST ROW$1,662m +15%

EM ROW$661m +8%

• Crestor US TRx +4%- Statin market +1%- Generic atorvastatin launched end

3 000

4,000

,

W. EUR$1,225m +5%

November- Crestor TRx volume stable

• Western Europe sales +5%

2,000

3,000

US$3,074m +16%

Western Europe sales 5%• Double-digit growth in France and Spain

• Established ROW sales +15%Japan accounts for half of the increase

0

1,000

FY 10 FY 11

• Japan accounts for half of the increase• Emerging Markets sales +8%

• Good growth in Emerging Europe & ChinaFY 10 FY 11

US W EUR

EST ROW EM ROW

• Generics in Brazil

161616

EST ROW EM ROW

Product Performance

Crestor TRx volume stable post generic t t tiatorvastatin

Generic Atorvastatin

Growth vs prior year8 weeks pre vs 8 weeks post600 000 Atorvastatin

November 30th8 weeks pre vs 8 weeks post

+2% / +2% *Pre/Post

600,000

500,000

400,000

300 000

+6% / +1% *Pre/Post

300,000

200,000

+4% / -10% **Pre/Post100,000

0

09/0

2/11

09/0

9/11

09/1

6/11

09/2

3/11

09/3

0/11

10/0

7/11

10/1

4/11

09/0

2/11

10/2

8/11

11/0

4/11

11/1

1/11

11/1

8/11

11/2

5/11

12/0

2/11

12/0

9/11

12/1

6/11

12/2

3/11

12/3

0/11

TRx NRx NBRx

1/6/

112

1/13

/12

1/20

/12

171717* Source: IMS NPA Market Dynamics, Data Week ending 01/20/12 (TRx, NRx)

** Source: IMS NPA Market Dynamics, Data Week ending 01/13/12 (NBRx)Product Performance

Crestor: STELLAR studyLDL C l i th d

LDL-C: LS mean change from baseline at week 6

LDL-C lowering across the dose range

20mg

40mg

0 -10 20 -30 -40 -50 -60-5 -15 -25 -35 -45 -55

10mg CRESTORmg mg

80mg

40mg

mg

10mg

20mg

CRESTOR

Atorvastatin^^^*** ^^^

10mg

20mg

40mg

80mg

*** *** ^^^***Simvastatin

CRESTOR 10

*** *** ^^^***

10mg

20mg

40mg

*** *** ***

Pravastatin

CRESTOR 20mg (-52%)

CRESTOR 10mg (-46%)

DATA ON FILE

181818

*p<0.002 vs atorvastatin 10 mg; simvastatin 10, 20, 40 mg; pravastatin 10, 20, 40 mg†p<0.002 vs atorvastatin 20, 40 mg; simvastatin 20, 40, 80 mg; pravastatin 20, 40 mg‡p<0.002 vs atorvastatin 40 mg; simvastatin 40, 80 mg; pravastatin 40 mg

Adapted from Jones PH et al. Am J Cardiol 2003;92:152–160 Product Performance

SATURN: IVUS study vs LipitorHypothesis: the greater impact of Crestor on LDL-C & HDL-C will translate

Coronary Artery Disease Patients

1300 Re randomised

Hypothesis: the greater impact of Crestor on LDL-C & HDL-C will translateinto a greater impact on atherosclerosis

Disease Patients N~2900 screened

Hypercholesterolaemic

Left main coronary artery: RSV 20 mg Crestor 40 mg (n=650)

Re-randomised patients

≤50% reduction in lumen diameter

Target coronary artery: <50% reduction in lumen

diameter of

ATV 40 mg atorvastatin 80 mg (n=650)

diameter of ≥40 mm segment

18-75 yearsVisit:Week:

1–4

30

413

526

639

752

865

978

1091

11104

2–2

Pre-treatment

IVUSLipids

Tolerability

LipidsLipidsIVUSLipids

LipidsLipidsTolerability

TolerabilityTolerability Tolerability

Tolerability

Headlines Results:Treatment with Crestor (rosuvastatin) or atorvastatin for two years resulted in statistically significant regressionin the primary efficacy measure, change from baseline in percent atheroma volume (PAV) in a ≥40 mm segment ofthe targeted coronary artery as assessed by intravascular ultrasound (IVUS). Crestor 40mg demonstrated a numerically greater reduction versus atorvastatin 80mg, but did not reach statistical significance (-1.22% vs. -0.99%; p=0.17).For the secondary efficacy measure of normalized total atheroma volume (TAV) Crestor demonstrated a

191919

CAD=coronary artery disease; IVUS=intravascular ultrasound•Data and analyses presented by the study’s academic investigators at AHA in Nov 2011

and published in NEJM the 15th of Nov. ref 10.1056/NEJMMoa1110874

For the secondary efficacy measure of normalized total atheroma volume (TAV), Crestor demonstrated astatistically significant reduction compared with atorvastatin (-6.39 mm3 vs. -4.42 mm3; p=0.01).

Product Performance

Seroquel Seroquel IR: $4,338m +3%Seroquel XR: $1,490m +27%

6,000

FY 2011 Sales: $5,828m +8% CERGlobal• Seroquel franchise value market share at

5,000

W EUR

EST ROW$317m 1%

EM ROW$352m -1%

Seroquel franchise value market share at 27.8%*

US• Market share for Seroquel franchise was a

3,000

4,000W. EUR$1,036m +7%

• Market share for Seroquel franchise was a market leading 29.8% at end of Dec

• Seroquel IR were $3,344m, up 8%ROW

1 000

2,000US$4,123m +10%

ROW• Seroquel IR declined by 8% in Western

Europe to $546m• Seroquel franchise sales in Emerging Markets

0

1,000

FY 10 FY 11

• Seroquel franchise sales in Emerging Markets were down 1%, where a 41% increase for Seroquel XR was more than offset by declines for Seroquel IR in Brazil following loss of FY 10 FY 11 q gexclusivity

• Seroquel XR now 26% of global franchise revenue

US W EUR

EST ROW EM ROW

202020

- US: 19% of franchise- ROW: 42% of franchise

EST ROW EM ROW

Product Performance*IMS MAT Nov 2011

Seroquel XRFY 2011 Sales: $1,490m +27% CER

Global

1,200

1,400

W EUR

EST ROW$89m +34%

EM ROW$132m +41%

• Seroquel XR is the fastest growing branded atypical in value globally

US

800

1,000W. EUR$490m +30% • US sales for Seroquel XR +22% to $799

million.ROW

400

600 US$779m +22%

• Sales of Seroquel XR in ROW increased by 32%, accounting for 42% of franchise sales outside the US

0

200

FY 10 FY 11

• Emerging markets: Strong growth of Seroquel XR +41%

• Further launches in Emerging markets planned in 2012FY 10 FY 11 planned in 2012

US W EUR

EST ROW EM ROW

212121

EST ROW EM ROW

Product Performance

Seroquel XR: new indications to drive growth…

SCHIZOPHRENIAHigh dose

Smaller market

BIPOLARMedium dose

Medium market

MDD (DEPRESSION)Low dose

Large marketAveragedose

Smaller market Medium market Large market

Si e ofSize of Patient

population

600m

g3

400m

g3

150m

g2

Average treatment duration

9 months1 7-8 months1 4-8 months1

222222

1. IMS Longitudinal patient data

2. AZ SEROQUEL Clinical Development program

3. US 2005 Patient Record Dosing Study (Gallagher Research)

4. Datamonitor Product Performance

SymbicortFY 2011 Sales: $3,148m +11% CER

Global• Growing 6 times faster than Seretide/Advair

globally (in volume)US2,500

3,000

EST ROW$418m +35%

EM ROW$450m +19%

• Gaining market share continuously in the US (+2.2 pts) despite a declining market and the launch of a 3rd competitor

1 500

2,000

W. EUR$1,434m +0%

$418m +35%

• Symbicort share of total prescriptions reaching 20.3% in December 2011

ROW1,000

1,500 $ ,

• Gaining share in Japan with value share now reaching 32% two years post launch

• Fast growth in emerging markets (e.g. Russia 41% d Chi 27%)

0

500

FY 10 FY 11

US$846m +17%

+41% and China +27%)• Still growing (volume) in Europe more than 11

years after launch

FY 10 FY 11

US W EUR

EST ROW EM ROW

232323

EST ROW EM ROW

Product Performance

Symbicort: Steady share growth in USi l hsince launch

25%

20.26%

21.53%

20%

15%

ket S

hare

(%)

10%

ymbi

cort

Mar

k

5%

Sy

0%May/07 Oct/07 Mar/08 Aug/08 Jan/09 Jun/09 Nov/09 Apr/10 Sep/10 Feb/11 Jul/11 Dec/11

242424

TRx Share NRx Share

Product Performance

NexiumUS

5,000

FY 2011 Sales: $4,429m, -12% CERUS• Generic penetration have significant impact

on PPI market - decline in branded product prescription demand

3 500

4,000

4,500

EM ROW$730m +20%

p p• Cost effective promotion

- No direct detailing support- Effective use of new channels

2,500

3,000

3,500

W. EUR$762m -39%

EST ROW$540m +10%

Effective use of new channels• Digital• Customer service representatives• Telemarketing

1,000

1,500

2,000

US$2,397m -11%

• TelemarketingROW• Emerging Markets +00%

Chi 38%

0

500- China +38%

• Launched in Japan in September 2011 (PPI market in Japan was $2bn in 2010)W t E 39%FY 10 FY 11 • Western Europe -39%

- Generics are available in the majorityof the European markets including UK, France Spain Italy and Germany

FY 10 FY 11

US W EUR

EST ROW EM ROW

252525

France, Spain, Italy and GermanyEST ROW EM ROW

Product Performance

Nexium geographical dynamics

US Western Europe

• Predominantly generic PPI market

• Brand equity and innovative salesand marketing channels help drive

• Data exclusivity expired 2010

• Generics are available in all majorEuropean markets incl France,

profitability of Nexium Spain, Italy, UK and Germany

Established ROW Emerging Markets

• Japan: Nexium – Launched in Sept 2011

• Canada: Ongoing patent litigation

• Growth product

• China: Nexium i.v. included in 2009 NRDL listing Strong growth in 2011NRDL listing. Strong growth in 2011 +38% CER

2626Product Performance

Iressa FY 2011 Sales: $554m +32% CER

400

500 EM ROW$221m +34%

• Western Europe +147%• Strong launch uptake• 80% of all 1st line EGFR M+ advanced

300

400

EST ROW

NSCLC patients receiving IRESSA• Emerging Markets +34%

• Including a 42% increase in China

100

200

W EUR

EST ROW$204m +2%

g• 1st line EGFR M+ approvals has been

granted in majority of Asian countries

0

100

FY 10 FY 11

W. EUR$127m +147%

US*$2m -50%

• Established ROW• 1st line EGFR M+ approval received in

Japan Q4FY 10 FY 11

US W EUR

EST ROW EM ROW

Japan Q4

272727

EST ROW EM ROW

*NDA withdrawn in the US Jan 2011Product Performance

FaslodexFY 2011 Sales: $546m +55% CER

Gl b l

400

500EST ROW$6m +100%

EM ROW$83m +28%

• Global• Value market share 60% (advanced

breast cancer hormonal market)

300

400W. EUR$193m +48%

• Faslodex 500mg now approved in 60 countries

• The conversion to the 500mg dose has been consistently successful across

100

200 US$264m +71%

been consistently successful across markets

• US & Western Europe together delivered 89% of global growth in 2011

0

FY 10 FY 11

of global growth in 2011• Established ROW

• Launched in Japan in Nov 2011FY 10 FY 11

US W EUR

EST ROW EM ROW

282828

EST ROW EM ROW

Product Performance

ONGLYZA Franchise: A new medication for type 2 di b t i i DPP4 l2 diabetes in a growing DPP4 class

• Approved in 68 countries (>45 launched) – US, Canada, China, Mexico, India, Brazil, Australia, Russia and all EU

• US: Launched July 2009 - 2nd to US market- Kombiglyze XR (Onglyza & metformin) launched Jan 2011- First once-a-day DPP4 plus metformin XR FDC

• EU: Launched October 20093 d DPP4 i hibit th EU k t- 3rd DPP4 inhibitor on the EU market

- Komboglyze (Onglyza & metformin IR FDC) – received marketing authorisation in Nov 2011

• Est ROW / EM: Further Launches in ROW during 2012

2929Onglyza and dapagliflozin are jointly developed and marketed by AstraZeneca and Bristol-Myers Squibb.Product Performance

DPP4 class growing globally and have now surpassed TZDs – DPP4's are now the leading BRANDED classTZDs DPP4 s are now the leading BRANDED classby value(~$6bn*) and volume

NIAD Class Global Volume NIAD Class Global Value (PDOT) Share (USD) Share

Metformin (MET), Sulfonylurea drugs (SU), thiazolidendiones (TZD), Dipeptidyl peptidase-4 inhibitors

303030Source: AstraZeneca and Bristol-Myers Squibb.

* Source: IMS Health MDART/MIDAS 3Q 2011 MAT.

( ), y g ( ), ( ), p p y p p(DPP4), alpha glucosidase inhibitors (AGI), Meglitinides (Glinide), Glucagon-like peptide-1 (GLP-1)

Product Performance

ONGLYZA FranchiseFY 2011 Global Alliance Revenue:

$211m +206% CEREM ROW

US• The ONGLYZA Franchise grew by 6.5 TRx share

points during 2011200

W. EUR$34m +240%

EST ROW$7m +250%

EM ROW$14m +367%

points during 2011• ~30% of US DPP4 market is FDC and ~ 1/3 of

new patients receiving a DPP4 & metformin FDC are given Kombiglyze XRK bi l XR h lift d O l

100

150$34m +240% • Kombiglyze XR success has lifted Onglyza

franchise share of new patients to ~25% in the DPP4 class

50

100EU

• Later launches stronger – e.g. in Greece, Norway, and Hungary, Patient Days of Therapy (PDOT)

l h b

0FY 10 FY 11

US$156m +189%

volume shares are above average

Est ROW / EM• LatAM: launch performance goodFY 10 FY 11

US W EUR

EST ROW EM ROW

p g• Launched in China Q4 2011 as the first DPP4

inhibitor

F th l d l h

313131

EST ROW EM ROW • Further approvals and launchesexpected during 2012

Product Performance

ONGLYZA Franchise – US market share performance

18%

Total Rx Share

16 45%

14%

16%16.45%

11 79%

17.20%

10%

12%

Rx

Shar

e

11.79%

11.67%

4%

6%

8%TR

5.53%

0%

2%

4% 4.66%

0%

01-0

1-11

02-0

1-11

03-0

1-11

04-0

1-11

05-0

1-11

06-0

1-11

07-0

1-11

08-0

1-11

09-0

1-11

10-0

1-11

11-0

1-11

12-0

1-11

Onglyza Kombiglyze XR Onglyza Family

323232

Source: IMS NPA Monthly data ending Dec 2012Onglyza jointly developed and marketed by AstraZeneca and Bristol-Myers Squibb.Product Performance

VimovoA d i US d EUApproved in US and EU

• Delayed release NSAID naproxen with immediate release esomeprazole

• Overall – 71 Regulatory Submissions, 41 Regulatory Approvals and 28 launches (US, UK, Netherlands (RMS), Canada, Bulgaria, Ireland, Latvia, Estonia Lithuania Finland Slovakia Sweden Switzerland PhilippinesEstonia, Lithuania, Finland, Slovakia, Sweden, Switzerland, Philippines, New Zealand, Belgium, Spain, Austria, Italy and others) for Vimovo.

• Global revenue of $34m in 2012• Global revenue of $34m in 2012

• US- VIMOVO performance to date reflects the challenges of launching aVIMOVO performance to date reflects the challenges of launching a

branded product into a highly genericised US market• EU

- Majority of launches occurred in 2011Majority of launches occurred in 2011- Launch will follow pricing and reimbursement procedure for each

country • Row

3333

- New launches during 2012 in Brazil, Mexico, Russia and Australia

Product Performance

VimovoA d i US d EUApproved in US and EU

Over 151 Million People Suffer From Osteoarthritis Pain1Over 151 Million People Suffer From Osteoarthritis Pain1

Low Satisfaction GI RiskUp to 30% of OA patients

switch or augment therapy in a year, mainly due to efficacy

d id ff 2

More than 50% of OA patients on chronic NSAIDs are at GI Risk4

~1 in 4 OA patients on NSAIDs

Non Adherence

and side effects2 are co-prescribed a PPI3

Non-AdherenceUp to 60% of patients are non-compliant with co-Rx

1W ld H lth O i ti Gl b l B d f A th iti 2004

pGPA5

343434

1World Health Organisation, Global Burden of Arthritis, 20042Adelphi Arthritis US VI DSP, 20093Adelphi Arthritis US VI DSP, 20064Sources: Us, EU4, Canada & Mexico Rxs, MAT 06/09. US Data: IMS LRx model, EU4 data: Cegedim EMR longitudinal data, Mexico & Canada – IMS Detailed Medical Database, Midas5Sturkenboom 2003

Product Performance

Vimovo P OA i li f ith b ilt i t t tiProven OA pain relief with built-in gastroprotection

• Approval based on studies 301 and 302, which demonstrated :

Demonstrated Significant Risk Reduction in Endoscopic GUs at 6 Months

302, which demonstrated :

- Significant endoscopic gastric ulcer risk reduction vs. EC

23.10% 24.30%

20%

25%

30%

ce

82% RR 71% RR

naproxen

- Gastric ulcers reduced even in 7.10%10%

15%

20%

GU

Inci

den

p<0.001 p<0.001

presence of low dose aspirin

- Significantly lower rate of

4.10%7.10%

0%

5%

PN400218

EC-Nap216

PN400210

EC-Nap210discontinuation due to UGI AEs

(including DU) vs EC naproxenn=218 n=216 n=210 n=210

PN400-301 PN400-302


BRILINTA/Prevalence of Acute Coronary Syndromes (ACS)(ACS)

~3 5 million >1 4 million About every 3.5 million >1.4 million episodes of ACS reported in the

Hospitalisationsfor ACS in the US

y26 seconds, an

American will suffera coronary eventp

major 7 markets (EU*, US, Japan) in

2005

CS USin 2005

About every minute, an American will diean American will die

from a coronary event

363636

1. Decision Resources Pharmacor Reports (STEMI, July 2006; NSTEMI/UA, July 2005).2. Rosamond W, et al. Circulation. 2008;117:e25-146.

*France, Germany, Italy, Spain, and United Kingdom.

Product Performance

The ACS opportunity

373737

Source: Kantar Health EpiDatabase except for Germany, which sources from Decision Resources. 2011 estimates of incidence

BRILINTA – Launch & Regulatory Status

Approved in 64 Markets Under Review in >30 MarketsLaunched* in 37 Markets* commercially available


As of 31st of Jan

y

Reimbursement in 20 Markets (+4 patient pay markets)

BRILINTA – Launch & Regulatory Status

Regulatory Approvals

Commercial Launch

Pricing & Reimbursement

Formulary / Protocol Access

BRILINTA BRILINTA BRILINTA BRILINTA BRILINTA regulatory

approval in 64 countries with

labels reflective of

BRILINTA commercial

launches in 37markets

reimbursement in 20 markets and 4

patient pay markets

formulary/protocol access varies by

country

the PLATO trial.

Provides access to 58% of global incident ACS



Provides access to 12% of global incident ACS incident ACS

population population population population


As of 31st of Jan

BRILINTA PLATO study

(N 18 624)UA/NSTEMI (moderate–high risk); STEMI (if primary PCI)

(N=18,624)All receiving ASA; clopidogrel-treated or naïve;randomised within 24 h of index event

ClopidogrelIf pretreated, no additional ld;if naïve standard 300-mg ld

AZD6140 (BRILINTA)180-mg ld, thenif naïve, standard 300-mg ld,

then 75-mg od maintenance;(additional 300 mg allowed pre-PCI)

90-mg bd maintenance(additional 90 mg allowed pre-PCI)

Primary end point: CVD/MI/stroke – patients intended for invasive management

6-12-month exposure

Primary end point: CVD/MI/stroke patients intended for invasive managementSecondary end point: CVD/MI/stroke/recurrent ischaemia/TIA/other arterial

thrombotic events

404040

PLATO = A Study of PLATlet Inhibition and Patient Outcomes.

ASA = acetylsalicylic acid; bd = twice daily; CVD = cardiovascular disease; ld = loading dose; MI = myocardial infarction; NSTEMI = non-ST-segment elevation MI; od = once daily; STEMI = ST-segment elevation MI; UA = unstable anginaProduct Performance

BRILINTA – Reduction in CV death, MI or stroke

4141

K-M = Kaplan-Meier Source: AZ US promotion material based on Plato studyProduct Performance

BRILINTA – Reduction in CV death


Source: AZ US promotion material based on Plato study

BRILINTA - Primary Efficacy Outcome ASA M i t D

16 Tic: ASA High

Maintenance Dose

14

12

e (%

)

Cl ASA Hi h10

8mate

d r

ate Clop: ASA High

Tic: ASA Low

Clop: ASA Low

8

6

Meie

r esti

m

4

2

ASA L ( 300 )

Kap

lan

-M

0 60 120 180 240 300 360

0ASA Low (< 300 mg) : HR (95% CI), 0.79 (0.71, 0.88)

HR (95% CI), 1.45 (1.01, 2.09)ASA High (> 300 mg) :

434343

Days from randomisation

0 60 120 180 240 300 360

Product Performance Source: Plato study

BRILINTA Pegasus StudyF th i ti ti th t ti l f BRILINTAFurther investigating the potential of BRILINTA• Current treatment guidelines for acute coronary syndrome (ACS) patients recommend

dual anti-platelet therapy for up to twelve months post-eventdual anti-platelet therapy for up to twelve months post-event• The PEGASUS-TIMI 54 study will examine the long-term efficacy and safety of ticagrelor

in patients who have sustained a heart attack from one to three years prior to enrolment • Trial Design:• Trial Design:

- Randomised, double-blind, parallel-group study- 21,000 patients worldwide

In addition to ticagrelor or placebo, patients will take once-daily, concomitant aspirin therapy (75 to 150 mg)therapy (75 to 150 mg)

Minimum treatment duration of 12 months

• The primary efficacy endpoint will be time to first occurrence of any cardiovascular event including CV death, non-fatal myocardial infarction or non-fatal stroke

• Data expected 2014

4444

Data expected 2014

Product Performance

R&D&

R&D

How are we addressing the R&D productivity h ll ?challenge?

Leadership and operating model1 Leadership and operating model1.

Attrition analysis and portfolio review2.

Organisational footprint3 Ongoing*Organisational footprint3.

Ongoing

Ongoing

Capability build and external science4.

4646R&D * Further restructuring announced 2nd of Feb

1. One R&D organisation

Di d l d l t L t t D l tDiscovery and early development Late-stage Development

Internal and

Global Medicines

Development

Innovative MedicinesInnovative MedicinesUnitsUnits

Marketand

external opportunities

InnovativeInnovative

p

Innovative Innovative MedicinesMedicines

UnitsUnits

R&D Enabling functions

474747R&D

2. Changing therapy area focusBuild / Maintain Deprioritise

484848R&D

2. Stringent Selection Criteria

• Link between target / disease• Predictive biomarkers

Right target engagementRight target engagement

Right tissue exposure • Bioavailability and tissue exposureH PK/PD di ti• Human PK/PD prediction

• Differentiating safetyRight safetyRight safety

Differentiating safety• Reactive metabolites

Right patientsRight patients • Scientific evidence in lead indication• Stratification of patient population

Right commercialRight commercial• Differentiated value proposition• Embedded payer perspective

494949R&D

2. Significant changes to the pipeline

sof

pro

ject

sN

umbe

r

505050R&D The AstraZeneca pipeline now includes [86] projects, of which 79 are

in the clinical phase of development and 7 are either launched or approved.

Small moleculesBiologics

3. Our R&D 2011 footprintBiologics

*Sodertalje, Sweden

Molndal, SwedenAlderley, UKSt Petersburg, Russia

San Francisco, CA*Montreal, Canada

Boston, MAWilmington, DE

Gaithersburg, MD

,Cambridge, UK

Reims, France

Osaka, Japan

Bangalore, India

Shanghai, China

• Global R&D Network

• Reducing Geographical footprint & Headcount

515151

l

g g p p

• Broader Technology baseR&D *Announcement 2nd of Feb-Exit all R&D operations

4. Investing in new capabilities to enhance productivity

Clinical trial designand interpretation

Integrated payerstrategy

Personalisedhealthcare

Predictivesciences

5252R&D

Portfolio highlights 2010/2011Launched/Approved Submitted New Indications Phase 3/LCM Starts

JapanEurope Europe

TC-5214

F t ti ib

Further Markets

Europe, USA, Japan& China. (500 mg)

Europe

Dapagliflozin Europe & USA

Fostamatinib

NKTR-118US, CAN, Brazil

Europe & USA(PUB) China

Europe & USUS

CAZ- AVI

1st Line NSCLC Japan

US & Europe Japan

Russia

PegasusLCM1 Line NSCLC Japan

EuropeEurope

LCM

MEDI-3250

US

5353R&D

China & other MarketsEU

Late stage Projectsate stage ojects

R&D

Pipeline FY 2011- NCEs Phase III/RegistrationCompound Mechanism Area Under

InvestigationPhase Estimated Filing

CardiovascularBrilinta/Brilique ADP receptor antagonist arterial thrombosis III Launched Launched 1H 2013 LaunchedDapagliflozin# SGLT2 inhibitor diabetes III Filed** Filed 1H 2013 Filed

InvestigationUS EU Japan Emerging

TC-5214# neuronal nicotinic channel modulator

major depressive disorder (adjunct)

III 3Q 2012 2015

NKTR-118# oral peripherally-acting opioid antagonist

opioid-induced constipation

III 2H 2013 2H 2013

Neuroscience

opioid antagonist constipation

Oncology

Caprelsa(vandetanib)

VEGFR/EGFR tyrosine kinase inhibitor with RET kinase activity

medullary thyroid cancer

III Launched Filed 2014 Filed

Infection

kinase activityRanmark#

(denosumab)anti-RANKL Mab bone disorders

stemming from bonemetastasis

III Approved

Q-LAIV Flu Vac(MEDI-3250*)

live, attenuated, intranasal influenza virus vaccine(quadrivalent)

seasonal influenza III Filed 4Q 2012

Zinforo#

(ceftaroline)extended spectrum cephalosporin with affinity to penicillin binding

pneumonia/skin infections

III Filed 3Q 2011

Respiratory & Inflammation

to penicillin- binding proteins

CAZ-AVI#

(CAZ-104)beta lactamase inhibitor/cephalosporin

serious infections III 2014 2014 2014

5555#Partnered product, *sBLA in US, MAA in EU, ** CRL received in Jan 2012R&D

Fostamatinib# spleen tyrosine kinase(SYK) inhibitor

rheumatoid arthritis III 2H 2013 2H 2013 2H 2013

Diabetes: A growing global problemType 2 Diabetes prevalence expected to grow from 285m to 438m by 2030

50-70% of patients are not controlled

Europe prevalence is 6.9% with highest rates (>11%) in

Germany, Austria,

Diabetes growing rapidly in U.S. – current prevalence

rate 10.3% y, ,Switzerland, and Portugal

Brazil’s prevalence will increase by two-

thirds by 2030

India and China will comprise nearly 33% of the world’s total patients with diabetes in 2030y patients with diabetes in 2030

565656Source: WHOCVGI

The progressive nature of Type 2 Diabetes lti t l h l di tiultimately overwhelms medications

Glycemic Control in an Illustrative Patient

Potential treatment

Goal*

changeFirst

Agent

Goal*A1c=<7

Goal**

HbA

1c

Normal***

A1c=<6.5

A1c=5%~30 Years

575757

Sources: ADOPT, UKPDS (*) According to the ADA; (**) according to the AACE/ACE; (***) according to the NIH(*) According to the ADA; (**) according to the AACE/ACE; (***) according to the NIHCVGI

Dapagliflozin: new approach to diabetes

Submitted in US and EU SGLT2 i hibiti

N l i li i d d t

Submitted in US and EU in Dec 10

SGLT2 inhibition

• Novel insulin independent mechanism and site of action

• Potential benefit in uncontrolled patients with type 2 diabetes who require HbA1c reduction and the additional benefit of weight loss

• Effective at all stages of thedisease and with widely usedanti-diabetic medications

Glucose excretionenabled throughSGLT2 inhibition

anti-diabetic medications

5858Dapagliflozin is being jointly developed and marketed by AstraZeneca and Bristol-Myers Squibb.CVGI

Dapagliflozin – Regulatory statusDapagliflozin FDA advisory committee outcome in July• Dapagliflozin FDA advisory committee outcome in July 2011, 6 Yes and 9 No, but acknowledged the need for new treatment options

• In Oct 2011, FDA extended the Prescription Drug User Fee Act (PDUFA) date for dapagliflozin by three months to January 28, 2012

• A complete Response Letter was issued 19th of Jan by the FDA regarding the New Drug Application for dapagliflozin

• The complete response letter requests additional clinical data to allow a better assessment of the benefit-risk profile for dapagliflozin. This includes clinical trial data from ongoing studies and may require information from newongoing studies and may require information from new clinical trials

• AstraZeneca and Bristol-Myers Squibb will work closely y ywith the FDA to determine the appropriate next steps for the dapagliflozin application and are in ongoing discussions with health authorities in Europe and other countries as part of the application procedures

5959

countries as part of the application procedures

Dapagliflozin is being jointly developed and marketed by AstraZeneca and Bristol-Myers Squibb.CVGI

Dapagliflozin: A comprehensive phase 3

Diet and exerciseent

m

programme

Monotherapy Oral anti-diabetic medication(s)

Oral anti-diabetic medication plus insulin

Insulin alone

T2D

trea

tme

para

digm

• Monotherapy• Initial combination

with Metformin

• H2H vs. SU • Add-on Metformin• Add-on SU

Add TZD

• Add-on insulin +/- OAD

ifloz

inst

udie

s

• Add-on TZD• Add-on DPP4 (IIIb)

• Special Patient Populations (Renal/CV) & Special Investigations (body composition)

Dap

agli

clin

ical

s

• 6-month data from the monotherapy (study 13) and add-on to metformin(study 14) studies presented 2009

• Study 6 (add-on to insulin) presented at ADA 2010• Data from 2 further studies (H2H vs SU add on to SU) presented at EASD 2010• Data from 2 further studies (H2H vs. SU, add-on to SU) presented at EASD 2010• Phase III data from Studies 4, 14 and 21/34 presented at ADA in June 2011• 12 dapagliflozin abstracts presented at the EASD in Sept 2011 Annual Meeting,

including: eight primary clinical data presentations.

606060

• FDA advisory committee held on the 19th of July 2011

Onglyza and dapagliflozin are jointly developed and marketed by AstraZeneca and Bristol-Myers Squibb.CVGI

Major Depressive Disorder (MDD) is a highly prevalent & debilitating disease with significantprevalent & debilitating disease with significant levels of unmet need

million people worldwide affected by major depressive disorder143

2nd leading cause of disability in ages 15 to 44 2

18 million patients are treated with drugs from a18 p gdiagnosed population of 23 million globally 1

don’t achieve remission after two sequential medications over a six months period344%

616161

1 – Decision Resource Cognos Report August 2009 , 2 - WHO website key facts on Depression, 3 – Ref 2. Rush et al, Am J Psychiatry 2006; 163:1905–1917 Derived from steps 1 and 2, 56.1 patients (36.8+19.3)

are remitters; 43.9 are non-remitters (44%)Neuroscience

TC-5214: opportunity in MDD

Phase 3 RENAISSANCE i

TC-5214 Phase 2b adjunct study demonstrated clinical efficacy in MDD -programme ongoing

• Exciting Phase 2 results where

0

-2rom

t

PBO + CITTC-5214 + CIT

demonstrated clinical efficacy in MDD improving over duration of trial

TC-5214 demonstrated clinical efficacy in MDD

• The Phase 3 RENAISSANCE **

-4

-6

M-D

Sco

re fr

ed tr

eatm

ent

Impr

** p < 0.01P < 0.0001***

clinical program will sequentially readout from Q4 2011 untilQ2 2012

**

**

-8

-10

hang

e in

HA

Mof

rand

omis

e rovement

• Filings planned in the US in 2H 2012 and in the EU in 2015

*****

-12

-

Mea

n ch

star

t o

*HAM-D = Hamilton depression Score

Week since randomisation1 2 4 6 814

-16

6262Neuroscience

TC-5214 Key Milestones 2011 2012 2013 2014 2015

USMDD Adjunct

PLANNED

H2

Renaissance 2 (Flex)

Renaissance 3 (Flex)

Renaissance 4 (Fixed)PLANNED

SUBMISSION Renaissance 5 (Fixed)

Renaissance 7 (LTS)

EU/RoWMDD Adjunct

Additional studies to meet EU regulatory requirements:Long term efficacy, Elderly PLANNED

SUBMISSIONSUBMISSION

Monotherapy Phase II trial H2PHASE III DECISION

636363

POINT

Neuroscience

TC-5214: Phase 3 RENAISSANCE ProgramRENAISSANCE 2 RENAISSANCE 3 RENAISSANCE 4 RENAISSANCE 5 RENAISSANCE 7

S fStudy design Flexible dosing Flexible dosing Fixed dosing Fixed dosing Long term safety

Geographic location US and India Europe US and India Global

(no US or India) US

Planned number of patients to be screened

940 940 2234 2236 2000

Target number of evaluable patients 288 288 684 684

At least 300 for 6 months & 100 for

1 year

Dose

1-4mg TC-5214 BID or placebo 1-4mg TC-5214

BID or placebo0.5 mg, 2 mg or 4 mg TC-5214 BID or placebo

0.1 mg, 1 mg or 4 mg TC-5214 BID or placebo

1-4mg TC-5214 BID or placebo

ClinicialTrials.gov identifier NCT01157078 NCT01180400 NCT01153347 NCT01197508 NCT01152554

RENAISSANCE 3 & 2: Top line data announced on the 8th of Nov and 20th of Dec

6464

RENAISSANCE 3 & 2: Top line data announced on the 8 of Nov and 20 of Dec.The studies did not meet their primary endpoints of change on the Montgomery-Åsberg Depression Rating Scale (MADRS) after eight weeks of treatment with TC-5214 as compared to placebo

Fostamatinib – Rheumatoid Arthritis• Fostamatinib is:

- the first oral spleen tyrosine kinase inhibitor in development as a potential treatment for RA- thought to reversibly block signaling in multiple cell types involved in inflammation and tissue

degradation in RA

• Phase IIb data (TASKi 2) published in the New England Journal of Medicine, demonstrated1

- ‘anti-TNF like’ levels of efficacy- Main adverse events of interest are GI tolerability, AST/ALT changes and raised blood

pressure all of which appeared to be manageable at doses being investigated in phase 3

- TASKi3 study in patients who failed biologic therapies failed to meet primary endpoint in phase 2

• Believed to be due to technical issues with the study design• Believed to be due to technical issues with the study design

• Fostamatinib long term extension (LTE) study presented at ACR in Nov• Fostamatinib is in Phase III development for the treatment of RA in patients

with an inadequate response to disease modifying anti-rheumatic drugs (DMARDs), including methotrexate (MTX)

• Initial regulatory filings anticipated in 2013 in US & EU

6565

1- The New England Journal of Medicine, An Oral Spleen Tyrosine Kinase (Syk) Inhibitor for Rheumatoid Arthritis, Weinblatt ME, Kavanaugh A, Genovese MC, et al. September 30, 2010; 363:1303-1312Inflammation

Rheumatoid Arthritis is a prevalent & debilitating di ith i ifi t l l f t ddisease with significant levels of unmet need

illi l ld id ff d b RA120 million people worldwide affected by RA1209 Million RA patients treated with disease-modifying therapy

(traditional and biologic)2,3

7 Million RA patients (approx. 80%) do not achieve remission with a traditional disease modifying anti-rheumatic drug (DMARD)

Million RA patients are treated with biologic therapy following

7 alone4

3Million RA patients are treated with biologic therapy following inadequate response to a DMARD (accounting for $12 bn in sales, approx. 90% of the RA market2,3)

6666

1 WHO report: The global burden of rheumatoid arthritis in the year 2000 http://www.who.int/healthinfo/statistics/bod_rheumatoidarthritis.pdf2 Decision Resource Pharmacor 2010 , 3 IMS Health MIDAS sales database4 Blumberg SN, Fox DA. Rheumatoid arthritis: guidelines for emerging therapies. Am J Manag Care 2001 ; 7 (6): 617 -26Inflammation

Fostamatinib opportunity in RA

Target PopulationTarget PopulationPatients who have an inadequate response to traditional disease-modifying anti-rheumatic drug

(DMARD) therapy

Profile in phase III d i RA i i h

Improved patient QoL• Improved outcomes in RA patients with

methotrexate background treatment, as measured by ACR and DAS

• Fast onset of action - 36% of patients

• Oral formulation

• No administration pain as associated withpachieved a response within 1 week

• Initial evidence of preventing further bone and cartilage damage

No administration pain as associated with injected therapy

• No need to visit hospital / physiciansffi f i f i• Manageable safety and tolerability profile office for infusions

676767Inflammation

Fostamatinib demonstrates efficacy in RA patients with inadequate response to methotrexateinadequate response to methotrexateRobust TASKi2 phase 2b trial reproduces ‘anti-TNF like’ efficacy seen in phase 2a

Placebo Fostamatinib 150 mg po qd Fostamatinib 100 mg po bid

686868

acebo osta at b 50 g po qd osta at b 00 g po b d

InflammationRef: The New England Journal of Medicine, An Oral Spleen Tyrosine Kinase (Syk) Inhibitor for Rheumatoid Arthritis, Weinblatt ME, Kavanaugh A, Genovese MC, et al. September 30, 2010; 363:1303-1312

Fostamatinib phase 3 development planThe phase III programme, OSKIRA, is designed to investigate fostamatinib as a treatment

for RA in patients with an inadequate response to DMARDs, including methotrexate

NDA & MAA 2013FPI Sept 2010

MTX-IR, 12 month MTX combination, n~ 900MTX combination, n 900

DMARD-IR, 12month DMARD combination, n ~ 900

aTNF-IR, 6 month MTX combination, n~ 450

LONG-TERM EXTENSION n~ 2100 (incl. 500 ex PhII)( )

Monotherapy (Phase IIb), 6 monthDMARD naiive and IR, n ~ 250

(began Q1 2011)

Japanese Phase I study

(US)

Japanese Phase I study

(US)

( g Q )

696969Inflammation * First data available late 2012 / early 2013

NKTR-118: Opioid Induced Constipation (OIC)OIC is a common and potentially debilitating adverse effect associated withopioid analgesic use

250 illi i id i ti itt f t t t f t d h i i- 250 million opioid prescriptions were written for treatment of acute and chronic painin 2010 in the United States alone1

- For those patients who take opiates for long term pain management, approximately 40 50 percent will develop constipation240-50 percent will develop constipation2

- Only about 40-50 percent of those patients experience effective relief from the current treatment options that include prescription and over-the-counter laxatives and stool softeners3,4,5.softeners .

• NKTR-118 is an oral peripheral mu-opioid antagonist , under investigation for the treatment of opioid-induced constipation (OIC). It is designed to relieve OIC without impacting pain reliefimpacting pain relief.

NKTR-118 is part of the exclusive worldwide license agreement announced on September 21, 2009, between AstraZeneca and Nektar Therapeutics.2009, between AstraZeneca and Nektar Therapeutics.

1 IMS MAT. December 2010.2 Thomas, J. Opioid-Induced Bowel Dysfunction. Journal of Pain and Symptom Management. 2008;35(1):103-113.3 Bell T et al OBD symptoms impair quality of life and daily activities regardless of frequency and duration of opioid treatment:

707070

3 Bell, T et al. OBD symptoms impair quality of life and daily activities, regardless of frequency and duration of opioid treatment:results of a U.S. patient survey (PROBE survey). Poster presented at The 25th Annual Scientific Meeting of the AmericanPain Society.San Antonia, TX, USA.

4 Pappagallo, M. Incidence, prevalence, and management of opioid bowel dysfunction. Am J Surg. 2001:182;S11-S18.5 Fakata, K. Peripheral Opioid Antagonists: A Therapeutic Advance for Optimizing Opioid Gastrointestinal Tolerability. The Journal of

Family Practice. 2007;56:S1-S12.Neuroscience

NKTR-118 significantly increases the frequency f t b l t d dof spontaneous bowel movements and reduces

time to first SBM in phase 2 studiesChange from Baseline in Spontaneous

Bowel Movements (SBMs/week)Median Time (hrs)

to First SBM

548.6

44.950

60

SBM

P < 0.002P = 0.001NS

(SE)

P = NS P = 0.002 P = 0.0001

2 6

3.64.4

2

3

4

5

28.2

20

30

40

(hrs

) to

Firs

t S

hang

e in

SB

M

1.8 1.9 1.92.6

0

1

2

6.2 6.62.9

0

10

20

5 25 50Ti

me

(Ch

5mg 25mg 50mg 5 mg 25 mg 50 mg

P-values based on a log rank test

Placebo NKTR-118 Placebo NKTR-118

Week 1 of DB Treatment

5mg 25mg 50mg

717171

gP-values based on a Wilcoxon Test

Webster L et al. ACG 2009Neuroscience

NKTR-118: KODIAC - Ongoing Phase 3 Program

• The Global Phase 3 Program* Commenced ingMarch 2011- Two 12-week, randomized, placebo-controlled efficacy

studies (N=630 per trial) with One 12-week Extensionstudies (N 630 per trial) with One 12 week Extension study (N=633)

- An open-label, randomized, long term safety studywith a usual care comparator arm (N=1135)with a usual care comparator arm (N=1135)

- One efficacy study in patients with cancer related pain (N=340)

• AZ responsible for the full development of NKTR-118 including clinical, regulatory, CMC and commercialization activities

• Health Authority filings planned by AZ in 2013

727272

*Clinicaltrials.gov ref: NCT01323790 , NCT01309841, NCT01384292, NCT01336205, NCT01395524

Neuroscience

Caprelsa (vandetanib) –Approved for treatment f d d d ll th idof advanced medullary thyroid cancer

• Thyroid cancer is a rare form of cancer. MTC represents 5 to 10% of total thyroid cancer cases About half of MTC patients have locally advanced and/or metastaticcancer cases. About half of MTC patients have locally advanced and/or metastatic MTC (aMTC).

- US - estimated 45,000 new thyroid cancer cases each year, up to 2000 new MTC patients a year

- Europe - thyroid cancer affects approximately 48,000 individuals annually, with an estimated mortality rate of 6,300 patients each year (GloboCan 2008)

• FDA approval on the 6th of April 2011 - only medicine to receive FDA approvalFDA approval on the 6th of April 2011 only medicine to receive FDA approval specifically for use in patients with advanced medullary thyroid cancer and brought to market under Orphan Drug Designation in the US

• Caprelsa significantly improved progression free survival in patients with medullary thyroid cancer (MTC) in the ZETA phase 3 trial

- Data presented at ASCO 2010p

• Received a positive opinion from the Committee for Medicinal Products for Human Use (CHMP) in Q4 2011

7373Oncology

Anti-Infective portfolio that coversb d t f t itia broad spectrum of opportunities

R i t t G + G + R i t t GG

Spectrum of Activity

Resistant Gram+ Gram+ Resistant Gram–Gram–

MRSA S i H. influenzae ESBL PMRSAMDRSP

S. pneumoniaeS. aureus

H. influenzaeE. coli

K. pneumoniaeProducing

Gram–

P. aeruginosa

Ceftaroline

Ceftaroline + NXL104

CAZ AVI

747474Infection

Zinforo (ceftaroline): A next generation h l i tibi ticephalosporin antibiotic

• Phase III programme targeting:- Complicated skin and soft tissue infections (cSSTI)- Community-acquired pneumonia (CAP)- Community-acquired pneumonia (CAP)- Demonstrates bactericidal activity against a broad range of pathogens

commonly implicated in cSSSI and CAP, including methicillin-resistant Staph aureus (MRSA) and penicillin-resistant Strep pneumoniae (PRSP)Staph. aureus (MRSA) and penicillin resistant Strep. pneumoniae (PRSP)

• Collaboration with Forest Laboratories started August 2009- AstraZeneca to co-develop and commercialize in all markets outside

US/Canada/Japan- Financial terms not disclosed

7575Infection

Complicated skin and soft tissue infections ( SSTI) d it i d i(cSSTI) and community acquired pneumonia (CAP)

cSSTI CAP

767676Infection

Zinforo: A next generation cephalosporin tibi tiantibiotic

Submitted in EU Dec 10 1o

Endpoint

• Demonstrated good

Non-inferiority

-10 0 10 20

Response (% Difference)

Endpoint10% NI margin

Population

efficacy in Phase 3 cSSTI and CAP

• Differentiating attributes

CANVAS 1

cSSTI

Modified intent-to-treat

Clinically evaluable

Modified intent-to-treat 1.2• Differentiating attributes- extended spectrum coverage, incl. MRSA activity in skin, coupled

CANVAS 2

FOCUS 1




activity in skin, coupled with a favourable tolerability profile FOCUS 2

CAPClinically evaluable



Favours Zinforo

Favours Comparator

7777Infection

CAZ AVI: to overcome antibiotic-resistance and treat the increasing number of infections resistant to existingincreasing number of infections resistant to existing therapies• Globally over 1m patients a year suffer from infections known or suspected toGlobally, over 1m patients a year suffer from infections known or suspected to

be resistant to cephalosporins which are routinely used to treat Gram-negative infections. This figure is expected to grow by >25% over the next decadeCAZ AVI combines a broad spectrum cephalosporin (ceftazidime) and a novel• CAZ-AVI combines a broad-spectrum cephalosporin (ceftazidime) and a novel beta-lactamase inhibitor (avibactam, formerly NXL104)

• AstraZeneca and Forest will initiate Phase III programme for CAZ AVI to treat serious Gram-negative bacterial infections including Complicated Intra-Abdominal Infections (cIAI) and Complicated Urinary Tract Infections (cUTI)

• The trial programme is designed to support global regulatory filings in 2014 p g g pp g g y gand will include five Phase III trials, based on positive results from twoPhase II trials

• In the collaboration development costs will be shared between AstraZenecaIn the collaboration, development costs will be shared between AstraZeneca and Forest

• Forest will have the rights to commercialise CAZ AVI in North America,AZ has rights to commercialise CAZ AVI in rest of world

7878

AZ has rights to commercialise CAZ AVI in rest of world

Infection

Phase 3 development decisions

Area under investigationAssets

AZD1981 (CRTh2 t t i t)

Breast cancer/Solid tumours

Asthma / COPDAZD1981 (CRTh2 receptor antagonist)

AZD8931 (erbB kinase inhibitor)

NSCLC / S lid t

Severe sepsis

AZD6244 – Selumetinib

AZD9773 (anti-TNF-alpha polyclonal antibody)

NSCLC / Solid tumours

Polymicrobial infections

(MEK inhibitor)

CXL(beta lactamase inhibitor and cephalosporin)

Solid tumours

Glioblastoma

MEDI1123 – Tremelimumab(CTLA-4 monoclonal antibody)

MEDI575 (anti PDGFR alpha mAb) Glioblastoma

New target Follower

MEDI575 (anti-PDGFR-alpha mAb)

7979R&D

Phase 3 development decisions: 1 example

Assets

AZD1981 (CRTh2 t t i t) Unmet medical needAZD6244 – selumetinibAZD1981 (CRTh2 receptor antagonist)

AZD8931 (erbB kinase inhibitor)

Unmet medical need

Asthma with allergic component

Non-small cell lung cancer

MEK i hibit

AZD6244 – Selumetinib

AZD9773 (anti-TNF-alpha polyclonal antibody)

Breast cancer

Asthma with allergic component• MEK inhibitor• Leading cause of cancer mortality• 25% have KRAS mutation and poor

prognosis(MEK inhibitor)

CXL(beta lactamase inhibitor and cepholasporin)

Breast cancer

Severe sepsis

prognosis• Phase 2: Significant improvement in

Progression-free survival • Trend for improvement in overall survival

MEDI1123 – Tremelimumab(CTLA-4 monoclonal antibody)

MED575 (anti PDGFR alpha mAb)KRAS mutation non-small cell lung

p• Trend for improvement in overall survival

New target Follower

MED575 (anti-PDGFR-alpha mAb)

8080R&D

Strategy Update & Planning Assumptions 2012+

Planning Assumptions81

Corporate Strategic priorities Making the

most meaningful difference to patient healththrough great medicines

Increase output • Innovation• Growth of current


• Implement asset

BusinessShape

PeoplePipeline

• Increase output

• Drive productivity& efficiency- Disease area focus

Innovation

• Accountability

• Lean & agile

Growth of current products

• Successfully launch the new products

Implement asset strategy & LEAN

• Drive efficiencies in Sales & Marketing

d G&A- Reduce site footprint

• Collaboration- Externalisation- Build stronger

l ti hi

• Value orientation• Drive growth in emerging markets

• Develop innovative

and G&A

• Focus Capexon productivity improvements

relationshipwith payers

Manage for long term shareholder value

pchannels to meet customer needs

p

Our values

Manage for long-term shareholder value

828282Planning Assumptions

Key planning assumptions remain robust

• Pharma sector can grow at least in line with real GDP,hi h ill th l i h iwhich will grow over the planning horizon

• Downward pressures from government interventions in the marketplace increased in 2011increased in 2011- Do not, as yet, represent a sustained “step-change” in evolution of these

pressures

• AstraZeneca assumptions- No material M&A or disposals

• Astra Tech sale in Q3 2011Astra Tech sale in Q3 2011- No premature loss of market exclusivity for key products- No material change in Fx rates for principal currencies vs average

January 2010 ratesy• Euro has significantly weakened vs USD


Guidance for 2012 (Core basis)

Revenue Low double-digit decline at CER

Gross Margin Below 2011, but above 80%

Core Pre-R&D Margin Below 2011, but upper half of mid-term planning range (48%-54%)

Net Finance Expense In line with 2011

Other Operating Income Low double-digit decline vs 2011

Tax Rate Reported tax rate around 24%

Core EPS Range $6.00 to $6.30


Currency basis for 2012 guidance

• Currency: January 2012 average rates:- $1 = £ 0.645

$1 = EUR 0 775- $1 = EUR 0.775- $1 = SEK 6.849- $1 = JPY 76.923

• Actual 2012 rates may differ materially from January 2012 rates upon which guidance is based

• 2012 currency sensitivity estimator is available atwww.astrazeneca.com


Estimated impact of currency movementsl d ion sales and earnings

Estimated impact of a 10% appreciation of the respective currency against the USD

EUR 1 9% 3 5%

Sales Core earnings

EUR 1.9% 3.5%

GBP 0.2% -2.2%

SEK 0 1% -2 6%SEK 0.1% 2.6%

JPY 1.1% 1.4%

Other Currencies 2.7% 4.9%% %

TOTAL 6.0% 5.0%


Planning Assumptions 2010-14: UpdateG th B i• Grow the Business

- Revenue in the range of $28bn to $34bn per annum over the period• Centre of gravity lower half of range going forwardg y g g g

- Risk adjusted revenue contribution from the recently launched and pipeline products lowered to the range of $2bn to $4bn

• Reshape the business- Maintain gross margin >80%

C & f- Core Pre-R&D operating margin in the range of 48-54 percent- Restructuring programmes on track. Phase 3 announced 2 Feb 2012

• Cash generation and investment- Achieving revenues and margins within planning range will drive

strong cash flowstrong cash flow- Reinvest 40 to 50% of after tax pre-R&D cash flow to drive future

growth and valueC h t t h h ld i i di id d d i di


- Cash returns to shareholders via progressive dividend and periodic share repurchases


Planning assumptions2010-2014Strategic Initiatives

• Grow market share of key brands that retain exclusivity:- Crestor- Seroquel XR

• Revenue in the range $28bn-$34bn per

th i dq

- Symbicort

• Successfully commercialise recent launchesand the next wave*

annum over the period

• Centre of gravity lower half of the range going and the next wave

- ONGLYZATM

- BRILINTA- Vimovo

- NKTR-118- TC-5214- Zinforo (ceftaroline)

g g gforward

• Risk adjusted contribution of $2bn-

- Caprelsa (vandetanib)- Dapagliflozin

( )- CAZ AVI- Fostamatinib

contribution of $2bn-$4bn from the recently launched and pipeline products

• Sustain double digit growth in emerging markets- Drive growth and new launch portfolio- Broaden portfolio to include branded generics

• Emerging Markets business ~25% of revenue in 2014

888888

Broaden portfolio to include branded generics

* Updated to reflect recent pipeline changesOnglyza and dapagliflozin are jointly developed and marketed by AstraZeneca and Bristol-Myers Squibb.Strategy

Business shape

Strategic Initiatives Planning assumptions2010-2014

• Maintain gross margin >80%- Complete asset strategy & API outsourcing- Drive LEAN SigmaDrive LEAN Sigma

• Improve Sales & Marketing effectiveness and efficiency- New channels and approaches

Core pre-R&D operating margin in the range of

48-54%

pp- Technology investment- Quality initiatives

• Increase G&A cost efficiency and flexibility- Process improvement and automation- Consolidation & selective outsourcing

• Procurement savings across all functions

• Focus on working capital management

898989

Focus on working capital management

Strategy

Driving ROI from R&D

Returns periodInvestment period

• Function costs

• Site footprint

• Supply chain capacity

• Sales and Marketing (mature markets)

N t f i l

Reduce

• Non-customer facing roles

• New talent • New commercial channels

Invest/Innovate

New talent

• Critical capabilities

New commercial channels

• Emerging Markets- Sales and Marketing

Manufacturing

9090

• Externalisation- Manufacturing

Cash generation & Investment

B i f hReinvest 40 to 50% of

ft t R&D h fl R id l h flBusiness focus on cash flow generation

after-tax pre-R&D cash flow to drive future growth

and value

Residual cash flowavailable for

• Specific business needs

• Debt repayment

• Internal and external R&D

• Tangible assets and information technology

• Achieving revenue and Core pre-R&D margins in planning range

• Progressive dividend policy

• Share repurchases

information technology• Delivering restructuring

programmes

• Tight management ofTight management of working capital, tax & interest

919191Strategy

2010-2014 in summary…

Reinvest 40 50%

Pre-R&D post tax

Marketed Products 40-50%

Pre-R&D

pcash flow

Revenue$28-34bn

Pre R&D Margin48 54%

Pre-R&D post tax

Other business

Margin48-54%

$ 48-54% post tax cash flow

W ki it l T &

business needs &

debt service

Working capital, Tax & interest management

Shareholder distribution


2011 Strong Cash Generation: Use of Cash

$bn, Act RoX

1840% Reinvestment Rate $9.4bn Return

1.8AstraTech

14

16

183.3

1.1

to Shareholders

11.110

12

1.13.8

6

85.6

3.7

2

42.8

8.3

02011

Opening Net Cash

Pre R&D Post tax

cash flow

After tax R&D*

Capex Dividends Net SBB 2011 Closing

Net Cash

9393

93 * R&D includes internal R&D expenditures, net of tax and depreciation/amortisation,and externalisation.

Shareholder Distributions• Progressive dividend policy

- Maintain or grow dividend each year

Annual dividend to reflect earnings prospects over entire cycle not just one year in isolation &- Annual dividend to reflect earnings prospects over entire cycle, not just one year in isolation & cover may vary, with target of an average of 2-times cover (ie 50% payout ratio) over the cycle, based on reported earnings (before restructuring)

• Dividend for 2011: $2 80 vs $2 55 2010 (+10%)• Dividend for 2011: $2.80 vs $2.55 2010 (+10%)- Second interim dividend 2011 $1.95

• Distribution policy and financial strategy to balance needs of business i t t fi i l dit d h h ldinvestment, financial creditors and shareholders

• The Board to keep under review the opportunity to return surpluscapital via periodic share repurchases

- 2011: $5.6bn net share repurchases. Original target in 2011: $4bn net augmented by net proceeds from the sale of Astra Tech.

- 2012 target: $4.5bn net, subject to business needs

• Net cash distributions to shareholders 2011 - Increased by +71% to $9.4bn through net share repurchases of $5.6bn & $3.8bn through the

payment of the second interim dividend from 2010 and the first dividend from 2011


Restructuring Programme: Phase 1 Complete 2007 20092007-2009

ProgrammeCost

2007-2009 $m

HeadcountImpact

2007-2009

Annualbenefits2010 $m

Global Supply Chain 4,250 (1,003)

SG&A 6,750 (1,216)

R&D 1,600 (288)

Total 12,600 (2,506) 2,400

959595Strategy

Restructuring Programme: Phase 2 Complete 2010 20112010-2011

HeadcountImpact

ProgrammeCost

Annualbenefits

Global Supply Chain 1,700 (198)

p2010-2012* 2010-2011 $m 2014 $m


SG&A 3,430 (782)

R&D 3,730 (1,122)

Total 8,860 (2,102) 1,900

• Programme cost: $1.2 billion was charged in 2010, and $0.9 billion in 2011

• Benefits: Realised $1 0 billion through end of 2011 and are on track to deliverBenefits: Realised $1.0 billion through end of 2011, and are on track to deliver about [two thirds] of the remaining benefits by end 2012, with the remainder by 2014

969696Strategy

*Headcount Impact: Some employees for which charges relate remain with the business at Dec 31st 2011 but will leave in 2012

Net headcount developments: 2006-2011

GlobalSupply Chain SG&A R&D AstraTech R&D

Reinvestment†Emerging Markets

Other Reinvestment

(3,000)

Wave 1 & 2-9,600 Net

(8,000)

Wave 1 & 220,500*

(13,000)

(18,000)

(23,000)

Headcount Dec 31st 2006 (66,800) Headcount Dec 31st 2011 (57,200)

9797

*Some Employees affected by the Wave 2 programme are still employed at Dec 31st 2011† Includes the acquisition of MedImmune

Strategy

Restructuring Programme: Phase 3 2012-2014

HeadcountImpact

ProgrammeCost †

Annualbenefits


p2012-2014* 2012-2014 $m** 2014 $m


SG&A 3,750 (800)

R&D 2,200 (800)

Total ~ 7,300 (2,100) 1,600

*Subject to completion of requisite consultation process.

** We charged $261 million of this $2.1 billion Phase 3 restructuring charge during fourth quarter 2011[Headcount Impact: Some employees for which charges relate remain with the business at Dec 31st 2011 but will leave in 2012.]

† [Includes roughly $200m of demolition costs.]/[Cash vs non cash]

989898Strategy

Newsflow 2011e s o 0

Newsflow

Q1 2012- Q2 2013 NewsflowBRILINTA/B ili

Q1 Q2 Q3 Q4 Q1 13 Q2 13

Dapagliflozin

BRILINTA/BriliqueEU launches & ROWFurther submissions/approvals

CHMP decision

ONGLYZA/KOMBIGLYZEFurther submissions/approvals/launchesZinforoZinforoFurther submissions in ROWEU decision TC 5214Sequential read out of further Phase III dataSequential read out of further Phase III dataRENAISSANCE 4 and 5Second interim dividend 2011Ex dividend date 15th FebAstraZeneca quarterly results and AGM

26th AprFostamatinib

26th Jul 25th Oct

Initial data from OSKIRA programNKTR-118Initial data from KODIAC program

100100100Newsflow

AstraZeneca –st a e ecaHistoric performance & Shareholder returns

History

AZN: Strong financial performance 1999-2011

Cost controlOperating leverageOperating leverage

500

550CAGR

Core EPS +14%

300

350

400

450

Core Op Profit +12%

150

200

250

300

Sales +7%

0

50

100

150

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

102102History Source: AZ annual reports, implied core margins

Strong cash generation: 1999-2011

90

100($bn)

Reinvestment of 44% of Operating cash flow (excluding major 31

70

80

90( g jacquisitions)

15

50

60 111 3 13

30

40 26Div

0

10

20

2 3

23SBB 1

Capex MerckPayments

Acquisitions&

Disposals

Distributedto

Shareholders

Other 2011 NetFunds

1999Net

Funds

Pre-R&DPost Tax

Cash Flow

After TaxR&D* -10

0

103103* R&D includes internal R&D expenditures, net of tax and depreciation/amortisation,and

externalisation. Source: AZ annual reportsPlanning AssumptionsHistory

Total Shareholder return AZ vs. Peers since 2006

160%ra

te (%

)

140%

150%

AZN Total Return

al g

row

th

110%

120%

130% FTSE 100 Average Total Return

Peer Average Total Return

dex

Ann

ua

90%

100%

110%

In

80%

Note: Peers line data represents an average of the total shareholder return for (including AZ) those companies which AZ classifies as its

104104104History

peers Abbott, BMS, Eli Lilly, GSK, J&J, Merck, Novartis, Pfizer, Roche and Sanofi

Source: Morgan Stanley

AZ 10 year dividend growth vs. peers

400%e

(%)

300%

350%

grow

th ra

te

200%

250% AZN

Peer average

x An

nual

g

150%

200%GSK

Inde

x

100%

Note: Peers line data represents an average of dividend growth for (including AZ) those companies which AZ classifies as its peers Abbott,

105105105

BMS, Eli Lilly, GSK, J&J, Merck, Novartis, Pfizer, Roche and Sanofi

History Source: Bloomberg

Key Industry Growth Drivers

106

Growth Drivers

Pharmaceutical industry growth drivers

Emergence of expanded populations inpopulations innew markets Continued unmet

medical need

Increasing andageing populations

Continued scientific andtechnological advance

ageing populations

technological advance

107107107Growth Drivers

The global population is ageing, with older patients consuming more healthcare than younger patientsconsuming more healthcare than younger patients

Global population aged 65 and older millions

Ratio of healthcare costs of older patients relative to 50-64 age group

US

and older, millions patients relative to 50 64 age group65-69

70-74

977 75-79

80-100

65-69

Canada477

65 69

70-74

75-79

80-100

65-69

70 74 UK2005 2030

70-74

75-79

80-100

108108108Source: Kotlikoff & Hagist, Dec 2005

Source: World Population Prospects: The 2005 Revision http://esa.un/unpp0x 2x 4x 6x 8x 10x 12x

Growth Drivers

Worldwide, the top 10 pharmaceutical therapy t d t b $100b 2010 16areas are expected to grow by $100bn 2010-16

120,000

Emergence of expanded populations in

100,000

populations innew markets Continued unmet

medical need60,000

80,000

Increasing andageing populations20,000

40,000 2016

2011


ageing populations0


109109109Growth Drivers Source: Evaluate Pharma

Emerging market GDP set for further iexpansion…

G7 countries E7 countries

Emergence of expanded populations in

20,000

25,000

) populations innew markets Continued unmet

medical need10 000

15,000

(US

$ bi

llions

Increasing andageing populations5,000

10,000

Rea

l GD

P


ageing populations-


110110110Growth Drivers Source: Global insight quarterly

2010 2016-2042 ave.

GDP growth drives growth in h ti l dpharmaceuticals spend

Ph d

United States (off scale)GDP/cap 47,369 Pharma spend/cap 954

700

Pharma spendper capitaUS$, 2008

Pharma spend/cap 954

France

500

600

Germany

Japan

Spain

300

400Emerging markets

United KingdomItaly

100

200

MexicoTurkey

Brazil

00 10,000 20,000 30,000 40,000 50,000 60,000 70,000

GDP per capita US$ 2008

Russian Federation

IndiaChina

111111111Note: R2=0.8, N=63, United States outlier excluded from the regression analysis. Source: World Market Monitor; IMS.

GDP per capita US$, 2008

Growth Drivers

Emerging markets are forecast to contribute ~70% of pharma growth during 2010-201570% of pharma growth during 2010 2015


Exploding emerging market ‘middle-class’

BRIC population with household income above $5,000

+21% p.a.

2014E1,864 million

2009900 million

2004270 million

113113113

1,864 million900 million270 million

Source: Economist Intelligence Unit, 2010, China NSBA, Indian NFHS, RAND, Brazil PNADGrowth Drivers

The emerging market opportunity is distributed l b f k tacross a large number of markets

Emerging market pharma sales, 2009g g p ,

Brazil, Russia, India,Mexico & Turkey ~$60bn

(~33%)Small & mid-sized EMs

~$90bn(~50%)

$30b

( 33%)

China

~$30bn(~17%)

There is a lot more than BRIC-MT

114114Source: IMSGrowth Drivers

While individual markets have ups and downs,th ‘ tf li f k t ’ id t dthe ‘portfolio of markets’ provides steady,strong growthStandard deviation of year-on-year GDP growth rates 2004-2010 (%pts)

8.6

Standard deviation of year-on-year GDP growth rates, 2004-2010 (%pts)

5.3 5.3

2.6

3.7

4.9

1 9

3.8

2.8 3.6 3.7

3.2

2.3 2 02.4

1.7 1.9 1.5 1.7

0.7

2.0 1.8

Portfolio of ~20 emerging

markets

2.0

markets

115115Source: IMS

The variation of the portfolio is lower than almost all markets individually

Growth Drivers

AstraZeneca has built a truly global emerging k t i ti d b imarkets prescription drug business

2011 Sales12011 Sales1

Asia-Pacific

$2.2bnLatin America

CEEMEA2$1.5bn$2 1bn

116116116

$2.1bn1 Actual exchange rate. 2 Central and Eastern Europe, Middle East, and Africa (including Turkey); Source: AZ

Growth Drivers

Both BRIC-MT and small and mid-sized emerging k t h t ib t d i ifi tl t thmarkets have contributed significantly to our growth

CAGRAbsolute growth2004-11 AZ emerging markets sales CAGRgrowth

$5.8bn 17%$3.9bn

2004 11 AZ emerging markets sales

$2.9bn$3.6bn 15%$1.8bn

$1.9bn$1.9bn

Small and mid-sized EMs $2.9bn

$1.1bn

$

20%$2.1bn

BRIC-MT

201120072004

$1.7bn$0.8bn

1171171171 Actual exchange rate. Source: AZ internal

201120072004

Growth Drivers

Brands dominate the market as brands are the b t f litbest proxy for qualityEmerging market sales1, 2009, Ex-manufacturer

~$50bn(~28%)

~$30bn(~17%) ~$180bn

( %)

~$90bn(~50%)

$10bn ( 5%)

Branded originals

Branded generics

Commodity generics

~$10bn (~5%)

TotalPatented originals

118118

1 Across 17 selected markets (China, Turkey, India, South Korea, Brazil, Mexico, Poland, Russia, Taiwan, Hungary, Romania, Egypt, Algeria, Saudi Arabia, South Africa, Ukraine, UAE). Source: IMS; AZ analysis. Growth Drivers

Across emerging markets we have a highly f l tf li f b dsuccessful portfolio of brandsAZ product sales in emerging markets, 2011

$661m

$730m

$459m

$450m

$352m

$384m

$324m

$310m$310m

$298m


$219m

Brand lifecycles are fundamentally different th i t bli h d k tthan in established markets

Despite expiry of key patents in most markets, product growth can be sustainedp p y y p , p gExample: Sales by country, % value growth p.a.

China – LosecBrazil – Diprivan Turkey – Pulmicort

+25% $33m $23m$15

+11%$158m+13%

$16m$7m

$15m$11m$91m$69m

201120072004201120072004 201120072004

>130 competitorsLOE1: 2001

~9 competitorsLOE1: 1999

~8 competitorsLOE1: 2001

1201201 Loss of Exclusivity. Source: AZ; IMS; EvaluatePharma.Growth Drivers

We have delivered improving profitability across i k temerging markets

AZ pre-R&D emerging markets operating margin (excluding central costs), i d d t 2011 i i t bli h d k tindexed to 2011 margins in established markets

73%

65%

Our current emerging markets margins are similar to our Europe business6 7

55%6-7 years ago

2004 2007 2011

121121121Source: AZ internalGrowth Drivers

Our strategy in emerging marketsh th l thas three elements

Emerging markets strategy

Continue to grow Extending our Broaden portfolio

A B CContinue to grow our presence in

the large BRIC-MT markets

Extending our geographicfootprint by

increasing our

Broaden portfolioto selectively

include branded generics

involvement in high-growth small

and mid-size marketsmarkets


Our goal is to continue double-digit growth,ith i k t b i 25% fwith emerging markets becoming ~25% of

AZ sales by 2014AZ emerging markets revenue goal

$12bn

$8bn

$4bn

20142009$0bn


Q4 Financial & KeyQ4 Financial & Key Product Performance

Product Performance

Headline results Q4 2011

CERQ4 2011 ActualQ4 2010 CERgrowth

Q4 2011$m

Actualgrowth

Q4 2010$m

Revenue 8,656 8,617 0% 0%Revenue 8,656 8,617 0% 0%

Core Operating Profit 2,990 2,865 +4% +1%

Core EPS $1.61 $1.39 +16% +12%Core EPS $1.61 $1.39 +16% +12%

Restructuring ($0.36) ($0.22) MedImmune/Merck amortisation ($0.08) ($0.07) L l d Oth ($0 01) $0 05Legal and Other ($0.01) $0.05

Reported EPS $1.16 $1.15 0% -5%


Regional revenue performance Q4 2011

CERQ4 2011 CER

Global Revenue 8 656 0% +19

CER%

Q4 2011$m

CER$m

Global Revenue 8,656 0% +19

US 3,643 +5% +189

Western Europe 2,005 -15% -350

Established RoW 1 600 +3% +45Established RoW 1,600 +3% +45

Emerging Markets 1,408 +10% +135


Key brand revenue summary Q4 2011

CERQ4 2011

Crestor 1 771 +11%

CER%

Q4 2011$m

Crestor 1,771 +11%

Seroquel 1,546 +15%Seroquel IR 1 148 +12%Seroquel IR 1,148 +12%Seroquel XR 398 +27%

Nexium 1,067 -13%Nexium 1,067 13%

Symbicort 839 +13%


Core margin: Q4 2011

$mCER

growth % salesDelta vsPY CER

Core Gross Margin 7,080 +1% 81.8 +90bps

Revenue 8,656 0%

Distribution (85) -1% 1.0 0bps

C SG&A (2 546) 12% 29 5 390Core SG&A (2,546) -12% 29.5 +390bps

Core Other Income 233 0% 2.7 0bps

Core Pre-R&D Profit 4,681 +10% 54.1 +480bps

Core R&D (1 692) +31% 19 5 -460bpsCore R&D (1,692) +31% 19.5 460bps

Core Operating Profit 2,990 +1% 34.5 +20 bps


Crestor

1,800

Q4 2011 Sales: $1,771m +11% CER• Crestor US TRx +4%

Statin market flat

1,400

1,600

1,800

EST ROW$465m +15%

EM ROW$158m +8%

- Statin market flat- Share of total prescriptions in Dec 12.3%- Generic atorvastatin launched end

November

800

1,000

1,200

W. EUR$305m +5%

November- Crestor TRx volume stable

• Western Europe were up 5 percent, largely on d bl di it th i F d S i

400

600

800

US$843m +12%

double-digit growth in France and Spain• Established Rest of World were up 15 percent,

with Japan accounting for half of the increaseE i M k t 8 t h

0

200

Q4 10 Q4 11

• Emerging Markets were up 8 percent, where good growth in Emerging Europe and China was partially offset by generic erosion in Brazil

• Strong brand position for patients at elevatedQ4 10 Q4 11

US W EUR

EST ROW EM ROW

• Strong brand position for patients at elevated CV risk

129129129

EST ROW EM ROW

Product Performance

Seroquel franchiseQ4 2011 Sales: $1,546m +15% CER Seroquel IR: $1,148m +12%

Seroquel XR: $398m +27%

1,200

1,400

W EUR

EST ROW$86m 19%

EM ROW$81m -6% US

• Seroquel IR were $910 million, up 18%

800

1,000W. EUR$255m +3% • Market share for Seroquel franchise was a

market leading 29.8% at end of Dec• Total prescriptions for the US antipsychotic

400

600 US$1,124m +20%

p p p ymarket were flat in the fourth quarter

ROW• Seroquel franchise sales in the Rest of World

0

200

Q4 10 Q4 11

qwere $422 million in the fourth quarter, a 3% increase

• Seroquel XR now 26% of global franchise Q4 10 Q4 11 revenue

- US: 19% of franchise- ROW: 44% of franchise

US W EUR

EST ROW EM ROW

130130130

EST ROW EM ROW

Product Performance

Seroquel XR

400

Q4 2011 Sales: $398m +27% CER US• Seroquel XR were up 31 percent to $214

300

350

W EUR

EST ROW$23m +16%

EM ROW$34m +37%

million.• US Seroquel XR TRx +8% vs a flat market

200

250W. EUR$127m +19% ROW

• Sales of Seroquel XR in ROW increased by 22%, accounting for 44% of franchise sales

100

150 US$214m +31%

outside the US• Emerging markets: Strong growth of Seroquel

XR 37%

0

50

Q4 10 Q4 11

• Further launches completed in 2011- MDD in Europe (Launched H1 in UK,

Germany, Spain)Q4 10 Q4 11

- MDD and bipolar disorder in Emerging Markets

- Xeroquel in France in BPD and US W EUR

EST ROW EM ROW

131131131

schizophrenia in NovEST ROW EM ROW

Product Performance

SymbicortUS• Symbicort TRx +9%

- Fixed combination market -2%

Q4 2011 Sales: $839m +13% CER

Fixed combination market 2%• Symbicort TRx share increased to 20.3% in

December 2011• New patient share 26%

700

800

EST ROW$123m +26%

EM ROW$115m +19%

New patient share 26%

ROW• Established ROW +26%400

500

600

W. EUR$359m +1%

$123m +26%

• Established ROW +26%- Fuelled by strong growth in Japan (up 56

percent) • Western Europe 1%

200

300

400 $

• Western Europe 1%- Data exclusivity in 10yr markets expired

in Aug 2010Complex regulatory path for generics

0

100

Q4 10 Q4 11

US$242m +26%

- Complex regulatory path for generics• Emerging Markets +19%

- China +40%

Q4 10 Q4 11

US W EUR

EST ROW EM ROW

132132132

EST ROW EM ROW

Product Performance

Nexium US• Retail volume -8 5%

Q4 2011 Sales: $1,067m, -13% CER• Retail volume -8.5%

- Generic penetration have significant impact on PPI market - decline in branded product prescription demand

1,000

1,200

EM ROW$176m +24%

- low single digit decline in average selling prices was largely due to the impact of US healthcare reform

C t ff ti ti

600

800W. EUR$145m -50%

EST ROW$132m +5%

• Cost effective promotion- No direct detailing support- Effective use of new channels

400 US$614m -8%

• Digital• Customer service representatives• Telemarketing

0

200 ROW• Western Europe -50%

- Generics are available all major European Q4 10 Q4 11 j pmarkets where France accounting for more than half of the decline

• Launched in Japan in September

Q4 10 Q4 11

US W EUR

EST ROW EM ROW

133133133

• Emerging Markets +24%- China +36%

EST ROW EM ROW

Product Performance

Iressa Q4 2011 Sales: $149m +25% CER

Strong growth in Western Europe and

120

140EM ROW$55m +38%

g g pEmerging Markets each accounting for about half of the sales increase

• Emerging Markets +38%

80

100

EST ROW

- Including a 41% increase in China- 1st line EGFR M+ approvals

• Established ROW

40

60

W EUR

EST ROW$60m +2%

Established ROW- 1st line EGFR M+ approval received in

Japan Q4

0

20

Q4 10 Q4 11

W. EUR$34m +70%

US*$0m -100%

Q4 10 Q4 11

US W EUR

EST ROW EM ROW

134134134

EST ROW EM ROW

*NDA withdrawn in the US Jan 2011Product Performance

ONGLYZA FranchiseQ4 2011 Global Alliance Revenue:

$ 71m + 122% CER80

US• TRx growth of 1ppt in Q4

60

70

80

EST ROW$3m +200%

EM ROW$5m +150%

• Franchise share reached 16.5% at end of Dec• Kombiglyze XR success has lifted Onglyza

franchise share of new patients to ~25% in the DPP4 class

40

50W. EUR$10m +100%

DPP4 class

EU• Komboglyze received marketing authorisation

20

30in EU in Q4

Est ROW / EM• Launched in China Q4 2011 as the first DPP4

0

10

Q4 10 Q411

US$53m +121%

Launched in China Q4 2011 as the first DPP4 inhibitor

• Further approvals and launches expectedQ4 10 Q411

US W EUR

EST ROW EM ROW

during 2012

135135135

EST ROW EM ROW

Product Performance

Investor Relations esto e at o sContacts

IR Contacts

Investor Relations Contacts

Investor Enquiries London

James Ward-Lilley [email protected] +44 207 604 8122

Karl Hård [email protected] +44 207 604 8123mob: +44 7789 654364

Nicklas Westerholm [email protected] +44 207 604 8124mob: +44 7585 404950

Investor Enquiries US

Ed Seage [email protected] +1 302 886 4065mob: +1 302 373 1361

Jörgen Winroth [email protected] +1 212 579 0506g j g @mob: +1 917 612 4043

137137IR Contacts

Cautionary Statement Regarding F d L ki St t tForward-Looking Statements

In order, among other things, to utilise the 'safe harbour' provisions of the US Private Securities Litigation Reform A t 1995 idi th f ll i ti t t t Thi t ti t i t i f d l kiAct 1995, we are providing the following cautionary statement: This presentation contains certain forward-looking statements with respect to the operations, performance and financial condition of the Group. 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 y p g gavailable at the date of preparation of this presentation 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 patents marketing exclusivity or trade marksour control, include, among other things: the loss or expiration of patents, marketing exclusivity or trade marks,or the risk of failure to obtain patent protection; the risk of substantial adverse litigation/government investigation claims and insufficient insurance coverage; exchange rate fluctuations; the risk that R&D will not yield new products that achieve commercial success; the risk that strategic alliances and acquisitions will be unsuccessful; the impact of competition, price controls and price reductions; taxation risks; the risk of substantial product li bilit l i th i t f f il b thi d ti t l t i l i th i k f f il tliability claims; the impact of any failure by third parties to supply materials or services; the risk of failure to manage a crisis; the risk of delay to new product launches; the difficulties of obtaining and maintaining regulatory approvals for products; the risk of failure to observe ongoing regulatory oversight; the risk that new products do not perform as we expect; the risk of environmental liabilities; the risks associated with conducting business in emerging markets; the risk of reputational damage; the risk of product counterfeiting; the risk of failure to g g g gsuccessfully implement planned cost reduction measures through productivity initiatives and restructuring programmes; the risk that regulatory approval processes for biosimilars could have an adverse effect onfuture commercial prospects; and the impact of increasing implementation and enforcement of more stringentanti-bribery and anti-corruption legislation. Nothing in this presentation should be construed as a profit forecast.

138138

Appendicesppe d ces

Appendices

Industry R&D spend growth

25%

30%

20%

10%

15%

5%

5%

0%

-5%1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Market Growth yoy

Appendices Source: EvaluatePharma July 2011 140

Healthcare MNC Headcount Trend1,000,000

Healthcare MNC - Headcount Trend

950,000

900,000

850,000

Healthcare MNC - Headcount Trend

800,000

750,0002006 2007 2008 2009 2010

Appendices Source: EvaluatePharma Feb 2011 & Annual reports 141

astrazeneca 2011

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