General PresentationGeneral Presentation

A il 2011April 2011

Contents

Page

1. Corporate Strategy

2. Q1 2011 Results & Product Performance

3

102. Q1 2011 Results & Product Performance

3. R&D Update

4 Strategy update & Planning assumptions 2011+

10

45

844. Strategy update & Planning assumptions 2011+

5. Key industry growth drivers

6 Ne s flo 2011

84

103

1216. News flow 2011

7. Investor Relations contacts8 Appendices

121

1238. Appendices 126

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

Integrated

Global

OUR VALUES

Biopharma

5

OUR VALUES

5Strategy

Strategic priorities

66Strategy

Business Growth

Strategic Initiatives

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

Planning assumptions2010-2014

• Revenue in the rangeq- Symbicort

• Successfully commercialise recent launchesand the next wave*

Revenue in the range of $28bn to $34bn per annum over the period

• Risk adjustedand the next wave- ONGLYZATM

- Brilinta- Vimovo

- Zibotentan- NKTR-118- TC-5214

• Risk adjusted contribution of $3bnto $5bn from recent launches, pipeline &

- Vandetanib- Dapagliflozin

- Zinforo (Ceftaroline)- CAZ104- Fostamatinib

in-licensing

• Revenue around the middle of range by

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

g y2014

7

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. 7Strategy

Business Shape

Strategic Initiatives

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

Planning assumptions2010-2014

Drive 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

8

Focus on working capital management

8Strategy

Cash generation & Investment

Business focus on cash flow generation

Reinvest 40 to 50% of after-tax pre-R&D cash

flow to drive future growth and value

Residual cash flow available for

• Achieving revenue and Core pre-R&D margins

growth and value

• Internal and external R&D

• Specific business needsp g

in planning range

• Delivering restructuring programmes

• Tangible assets and information technology

• Debt repayment

• Progressive dividendprogrammes

• Tight management of working capital, tax & interest

• Progressive dividend policy

• Share repurchasesinterest

99Strategy

Q1 2011 Results & Q 0 esu ts &Product Performance

Performance

Q1 2011 Summary

• Financial performance- Revenue $8.292m (-4% CER)

• Research & Development- Progress on R&D change programme

- Reflects anticipated generic competition as well as impact from government price interventionsCore EPS $2 23 (+10% CER)

- First launches for Brilique/Brilinta in Europe. - KombiglyzeTM XR launched in the- Vandetinib US FDA approved for the treatment of

- Core EPS $2.23 (+10% CER)- Strong growth of Crestor, Symbicort,

Seroquel XR- Emerging Markets revenue increased

advanced medullary thyroid cancer- Disappointments on Zibotentan –Study 15

discontinuedEmerging Markets revenue increased by 13% at CER

• Shareholder returns• Legal developments- Agreements reached between the UK and US

- Net cash distributions to shareholders in Q1 increased by 57% to $3,857 million through dividend payments of $2,646 million and net share repurchases of

Agreements reached between the UK and US Governments over certain tax matters which resulted in Core EPS in the first quarter 2011 benefited by $0.39. Company expects the full year effective tax rate on a reported basis to be lowered to around 21million and net share repurchases of

$1,211 million.on a reported basis to be lowered to around 21 percent.

1111Performance

Headline results Q1 2011

CERQ1 2011 ActualQ1 2010 CERgrowth

Q1 2011$m

Actualgrowth

Q1 2010$m

Revenue 8,292 8,576 -3% -4%, ,

Core Operating Profit 3,678 3,857 -5% -5%

Core EPS $2.23 $2.03 +10% +10%

Restructuring ($0 07) ($0 05)RestructuringMedImmune/Merck amortisation

($0.07)($0.08)

($0.05)($0.07)

Reported EPS $2.08 $1.91 +9% +10%

1212Performance

Regional revenue performance Q1 2011

CER

Gl b l R 8 292 4%

CER%

Q1 2011$m

US 3,304 -11%

Global Revenue 8,292 -4%

Western Europe 2,235 -7%

E t bli h d ROW 1 321 4%Established ROW 1,321 +4%

Emerging Markets 1,432 +13%

1313Performance

Key brand revenue summary Q1 2011

Q1 2011$m

CER%

Crestor 1,478 +12

Seroquel 1 345 +3Seroquel 1,345 +3Seroquel IR 1,006 -5Seroquel XR 339 +33

Nexium 1,161 -6

Symbicort 752 +8

1414Performance

Core margin: Q1 2011

$mCER

growth % salesDelta vsPY CER

Core Gross Margin 6,965 -1% 84.0 +300bps

Revenue 8,292 -4%

Distribution (80) - 1.0 -

Core SG&A (2,350) +1% 28.3 -140bps

Core Other Income 215 -21% 2.6 -60bps

Core Pre-R&D Profit 4,750 -2% 57.3 +100bps

Core R&D (1,072) +7% 12.9 -130bpsre

15

Operating Profit 3,678 -5% 44.4 -30 bps 15

Performance

Cash generation: Q1 2011Q1 2011

$mQ1 2010

$m

Opening net cash/(debt) 3,653 535

EBITDA* 3 927 4 044EBITDA 3,927 4,044

Movement in working capital* (864) (1,221)

Tax & interest paid* (1,043) (1,096)

Other non-cash movements (130) 12

1,890 1,739

Legal/Tax settlements* - -g

Net cash from operating activities 1,890 1,739

16* Adjusted for Legal/Tax settlements 16Performance

Debt and Capital Structure Q1 2011

Q1 2011 $m

Q4 2010 $m

Closing net cash/(debt) 1,486 3,653

Gross debt (9,594) (9,222)

Cash/Cash equivalents and STIs 11 080 12 875Cash/Cash equivalents and STIs 11,080 12,875

17Performance 17

2010 Strong Cash Generation - Use of Cash

37% reinvestment$bn

37% reinvestment

18* R&D includes internal R&D expenditures, net of tax and depreciation/amortisation,and externalisation. Source: AZ annual reportsPerformance 18

Shareholder Distributions

• Progressive dividend policyMaintain or grow dividend each year- Maintain or grow dividend each year

- 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)payout ratio) over the cycle, based on reported earnings (before restructuring)

• Dividend for 2010: $2.55 vs $2.30 2009 (+11%)

• Distribution policy and financial strategy to balance needs of business investment, financial creditors and shareholders

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

- 2010: $2.1 billion net share repurchases

- Target in 2011: net $4 billion

19

g

19Performance

Key Product PerformanceKey Product Performance

2020Performance

AZ has successful products or key late stage assets in 9 of the top 10 therapeutic categories globallythe top 10 therapeutic categories globally

Rank Therapeutic Category 2009 Category value ($50bn)

Current AZ Presencevalue ($50bn)

1 ONCOLOGY 50Arimidex, Casodex, Zoladex,

Faslodex, IressaCHOLESTEROL & TRIGLYCERIDE Crestor

2 REGULATION 31Crestor

3 ANTIULCERANTS 29Nexium & Prilosec

4 ANGIOTENSIN II INHIBITORS 24Atacand4 ANGIOTENSIN II INHIBITORS 24

5 ANTIPSYCHOTICS 23Seroquel & Seroquel XR

6ANTIDEPRESSANTS & MOOD Seroquel & Seroquel XR

TC 5214 in development6 STABILISERS 19 TC-5214 in development

7 ANTI-TNF PRODUCTS 17Fostamatinib being investigated in RA

ONGLYZA/KOMBIGLYZE XRD lifl i i d l t8 NON-INSULIN ANTI-DIABETIC AGENTS 16 Dapagliflozin in development

9 PLATELET AGGREGATION INHIBITORS 14Brilinta / Brilique - US awaiting

approval decision /launched in EU

21

10 HIV ANTIVIRALS 14-

ONGLYZA and dapagliflozin are being co-developed with Bristol Myers SquibbTC-5214 has been in-licensed from Targacept Fostamatinib has been in-licensed from RigelPerformance 21

CrestorQ1 2011 Sales: $1,478m +12%

1,200

1,400

EST ROW$346m +10%

EM ROW$161m +8%

• Crestor US TRx +9%• Statin market growth +3%

• Indications based on JUPITER support

800

1,000

W. EUR$289m +6%

growth• Strong brand position for patients at

elevated CV risk

400

600

US$682m +17%

0

200

1Q10 1Q111Q10 1Q11

US W EUR

EST ROW EM ROW

22

EST ROW EM ROW

Performance 22

CRESTOR US TRx Volume Growing The Fastest

20%

30%

ow

th

CRESTOR

0%

10%

We

ek

TR

x G

r

Generics

Lipitor

-20%

-10%

4-W Market Lipitor

-40%

-30% Vytorin

-50%

/8/1

0

2/8

/10

3/8

/10

4/8

/10

5/8

/10

6/8

/10

7/8

/10

8/8

/10

9/8

/10

0/8

/10

/8/1

0

2/8

/10

23

1 2 3 4 5 6 7 8 9

10

11

12

Source: IMS NPA – Data week ending 03/25/11

* Estimated based on weekly dataPerformance

Strong positioning is driving Crestor preference

Statin Would Recommend To Family1st T t t Ch i F At Ri k P ti t Statin Would Recommend To Family Member With Dyslipidemia

Among Total Physicians

1st Treatment Choice For At-Risk PatientAmong Total Physicians

Q2’10Q308Q3 ‘08 Q1 ‘10 Q2 ‘10

54%

Q2’10 (n=914)

31%

Q308(n=973)

Q3 ‘08(n=914)

Q1 ‘10(n=923)

Q2 ‘10(n=914)

CRESTOR 30% 51% 54%

28%38%Lipitor 39% 24% 24%

2%

15%

9%

19%

Vytorin 8% 3% 2%

Simvastatin 21% 19% 18%

24Note: Significance testing at the 95% confidence level.Q8c: Which product would you recommend to a member of your family diagnosed with dyslipidemia?

Source: Crestor Monthly ATU – June 2010

24Performance

GALAXY programme hypothesis

Effects on lipid profile STELLAR

P f d b fi h l iMETEOR

Profound benefits on atherosclerosis ASTEROIDSATURN*

Reductions in CV morbidity and mortality JUPITER

2525

* Reports in H2 2011Performance

Crestor: STELLAR study

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

26

*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 26Performance

Crestor – Proven to slow the progressionf th l iof atherosclerosis

•Label indication•Label indication- Approved in US Nov 2007- ‘Proven to slow the progression

f th l i ’of atherosclerosis’

2727Performance

JUPITER outcomes studyCurrent guidelines endorse statin therapy for patients with established vascular disease, diabetes,

and among those with hyperlidemia

However half of all heart attack and stroke events occur among apparently healthy men andHowever, half of all heart attack and stroke events occur among apparently healthy men and women with average or even low levels of cholesterol

Placebo

No history of CAD men ≥50 yrs

women ≥60 yrs

Rosuvastatin 20mg (n~7500)

run-inwomen ≥60 yrs

LDL-C <130 mg/dLCRP ≥2.0 mg/L

Placebo (n~7500)

1–6

2–4

30

413

Final3–4 y6-monthly

Visit:Week:

LipidsCRP

Randomisation LipidsCRP

Lead-in/eligibility

28Ridker PM. Circulation 2003; 108: 2292–2297

Tolerability Tolerability

CAD=coronary artery disease; LDL-C=low-density lipoprotein cholesterol; CRP=C-reactive protein; HbA1c=glycated haemoglobin

28Performance

JUPITER Primary Endpoint: MI St k UA/R CV D th

Placebo 251 / 8901HR 0.56, 95% CI 0.46-0.6908

MI, Stroke, UA/Revasc., CV Death

HR 0.56, 95% CI 0.46 0.69P < 0.00001

Number Needed to Treat (NNT5) = 2544 %06

0.

e - 44 %

40.

0

ve In

cide

nce

Rosuvastatin 142 / 8901

20.

04

Cum

ulat

iv0.

02

Number at Risk

0 1 2 3 4

0.00

Follow-up (years)

R t ti 8 901 8 631 8 412 6 540 3 893 1 958 1 353 983 544 157

29

RosuvastatinPlacebo

8,901 8,631 8,412 6,540 3,893 1,958 1,353 983 544 1578,901 8,621 8,353 6,508 3,872 1,963 1,333 955 534 174

29Performance

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

into a greater impact on atherosclerosisCoronary Artery Disease Patients

N~2900 screened

Hypercholesterolaemic

1300 Re-randomised

patients

Data expected H2 2011

Hypercholesterolaemic

Left main coronary artery: ≤50% reduction in lumen

diameter

Target coronary artery: <50%

RSV 20 mg Crestor 40 mg (n=650)

Target coronary artery: <50% reduction in lumen diameter

of ≥40 mm segment

18 75 years

ATV 40 mg atorvastatin 80 mg (n=650)18-75 years

Visit: 1 3 4 5 6 7 8 9 10 112

Pre-treatment

IVUSLipidsLipidsIVUS LipidsLipids Tolerability Tolerability

Week: –4 0 13 26 39 52 65 78 91 104–2

30CAD=coronary artery disease; IVUS=intravascular ultrasound

IVUSLipids

Tolerability

LipidsLipidsIVUSLipids

LipidsLipidsTolerability

Tolerability

Tolerability Tolerability

Tolerability

30Performance

Seroquel

1,400

Q1 2011 Sales: $1,345m +3%

EM ROW

1 000

1,200

,

W. EUR$246m +7%

EST ROW$74m -4%

EM ROW$94m +7% Seroquel IR: $1,006m -5%

Seroquel XR: $339m +33%

800

1,000 $246m +7%• Seroquel XR now 25% of global franchise

revenue• US: 19% of franchise

400

600US$930m +2%

• ROW: 39% of franchise

• Further launches in 2011

0

200

1Q10 1Q11

• Further launches in 2011• MDD in Europe (Launched March in UK,

Germany, Spain etc)• MDD and bipolar disorder in Emerging1Q10 1Q11 • MDD and bipolar disorder in Emerging

MarketsUS W EUR

EST ROW EM ROW

31

EST ROW EM ROW

Performance 31

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

32

1. IMS Longitudinal patient data

2. AZ SEROQUEL Clinical Development program

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

4. Datamonitor 32Performance

NexiumUS

1,200

Q1 2011 Sales: $1,161m, -6%US• Retail volume -3%

• US PPI market +4%*C t ff ti ti

1,000EST ROW$122m +5%

EM ROW$176m +20%

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

600

800W. EUR$263m -18%

• Digital• Customer service representatives• Telemarketing

200

400 US$600m -8%

ROW• Western Europe -18%

• Data exclusivity in 10yr markets expired

0

200 y y pin 2010

• Generics are available in 13 European markets incl France, Spain, Italy and G1Q10 1Q11 Germany

• Emerging Markets +20%• China +57%

1Q10 1Q11

US W EUR

EST ROW EM ROW

33

EST ROW EM ROW

Performance 33* Source IMS Extended Units TRx Q1 11 vs Q1 10

Nexium geographical dynamics

US Western Europe

• Predominantly generic PPI market• Brand equity and innovative sales and

marketing channels help drive profitability of Nexium

• Data exclusivity expired 2010• Generics are available in 13 European markets incl France, Spain, Italy and Germanyprofitability of Nexium Germany

• IP defence ongoing

Established ROW Emerging Markets

• Japan: Nexium filed for 1st time in 1Q 2010• Canada: Ongoing patent litigation

• Growth product • China: Nexium i.v. included in 2009

NRDL listing. Strong growth in Q1 g g g2011 +57% CER

3434Performance

SymbicortQ1 2011 Sales: $752m +8%

US800

• Symbicort TRx +14%• Fixed combination market -0.5%

• Symbicort NRx share increased to 20% in 600

700

800

EST ROW$95m +40%

EM ROW$114m +26%

March 2011• Up 0.5 percentage points since Dec 2010

400

500

W. EUR$346m -5%

$95m +40%

ROW• Established ROW +40%

• Continued strong performance in Japan200

300

$

g p p• Western Europe -5%

• Data exclusivity in 10yr markets expired in Aug 2010

0

100

1Q10 1Q11

US$197m +14%

g• Complex regulatory path for generics

• Emerging Markets +26%

1Q10 1Q11

US W EUR

EST ROW EM ROW

35

EST ROW EM ROW

Performance 35

Symbicort: Steady share growth in USi l hsince launch

3636Performance

Global growth of AZ’s key brands is strong relative to the market…

40%

AZ PRODUCT GROWTH

CLASS GROWTH

25%

30%

35%

25%23%

20%

25%

14%

10%9%10%

15%

2%1%

-5%

0%

5%

CRESTOR NEXIUM SEROQUEL SYMBICORT

-7%-10%

-5%

Data: End Dec 2009 End Dec 2010

37Source: IMS Health, Dollar Growth at Constant Exchange Rate. Growth = 12 Months Ending September 2010 vs. 12 Months Ending September 2009: IMS expressly reserves all rights, including rights of copying, distribution and replication. ATC codes used L2B3, C10A1+C10C, A2B2, N5A1+Symbyax (intrpd for Seroquel), R3F1 Source: IMS Health, Dollar Growth at Constant Exchange Rate. Growth = 12 Months Ending December 2010 vs. 12 Months Ending December 2009: IMS

expressly reserves all rights, including rights of copying, distribution and replication. ATC codes used L2B3, C10A1+C10C, A2B2, N5A1+Symbyax (intrpd for Seroquel), R3F1

Performance 37

Data: End Dec 2009- End Dec 2010

ONGLYZA – A new medication for diabetesi i lin a growing class

• Approved in 61 countries (US, Canada, Mexico, India, Brazil, Australia, Russia and all EU countries) and launched in 34.

• US: Launched in the in July 2009 - 2nd DPP-IV inhibitor on the US market- CV event study started in Q2 2010y- FDC of KOMBIGLYZE XR (ONGLYZA & metformin) on the

market Jan 2011. The first and only once-a-day DPP-4 plus metformin XR FDC

• EU: Launched in October 2009- 3rd DPP-IV inhibitor on the EU market- Fixed Dose Combination submitted in EU in 3Q 2010 and is

under review by EMA

38

•Onglyza and dapagliflozin are jointly developed and marketed by AstraZeneca and Bristol-Myers Squibb. 38Performance

ONGLYZA shows significant reductions in HbA1 FPG PPG f b li t W k 24HbA1c, FPG, PPG from baseline at Week 24

A1c(%)

Fasting Plasma Glucose( /dL)

Postprandial Glucose( i /dL)0 6 20 0 2000(%) (mg/dL) (mg min/dL)

0.190 2

0.4

0.6

10.0

15.0

20.0

-646.6

0

2000

0 2

0.0

0.2 6.06

0.0

5.0

-4000

-2000

-0.43 -0.460 540 6

-0.4

-0.2

-8.67-10.0

-5.0

-6868 -6896-8000

-6000

-0.54

1 0

-0.8

-0.6-14.53

-16.75

25 0

-20.0

-15.0 -8084

12000

-10000

Saxagliptin + Met

PBO + Met2.5 mg 5 mg 10 mg

-1.0 -25.0 -12000

39

PBO + Met2.5 mg 5 mg 10 mg

Phase 3 Study -011, ADA June 2008Onglyza and dapagliflozin are jointly developed and marketed by AstraZeneca and Bristol-Myers Squibb. 39Performance

ONGLYZA Franchise launch summaryUS• US

- Leading launch indicators solidO l ’ t k h b i t d b k t d i i ll th• Onglyza’s uptake has been impacted by market dynamics especially the slowing of the DPP4 market in the US and the penetration of the FDCs in the EU

• ONGLYZATM share of new prescriptions for DPP4 products in the US was p p p11.8 percent in March 2011. KOMBIGLYZE XR, the newly launched combination product, added a further 3.4 percent new prescription share to the franchise in the US in March.O l i ibl t 90% f ll d li f th li h h• Onglyza is accessible to 90% of all covered lives; of the lives who have access to Onglyza, 78% have access without prior authorizations providing relatively open access

• More than 1 in 4 of all new DPP4 starts are on ONGLYZA

• EU• Results in more recent launch markets – e.g. in Greece, Norway, and g , y,

Hungary, Patient Days of Therapy (PDOT) volume shares are above average• ROW

• LatAM: performance is good, with PDOT volume share in Mexico at 20.8%

40

and Brazil 13.7%.

Onglyza and dapagliflozin are jointly developed and marketed by AstraZeneca and Bristol-Myers Squibb. 40Performance

ONGLYZA Franchise - US market share performance

Onglyza / Kombiglyze

Note: New DPP4 patient share is based on patients who have

41Source: IMS NPA

Note: New DPP4 patient share is based on patients who have not received any DPP4 in the last 12 months.

Onglyza and dapagliflozin are jointly developed and marketed by AstraZeneca and Bristol-Myers Squibb. 41Performance

VimovoA d i US d EUApproved in US and EU

• Delayed release NSAID naproxen with immediate release esomeprazole• Delayed release NSAID naproxen with immediate release esomeprazole

• US – Sales promotion from Sept 2010- Q1 focused on continue building brand awareness and managed market access

- Growth has been steady. Share growth within targeted HCPs (those targeted with personal selling) is performing wellwith personal selling) is performing well

• Approval in 23 EU countries – October 2010- EU launch programme ongoing -approx half of EU launches to occur in late

1H11; remainder in 2H11- Launch will follow pricing and reimbursement procedure for each country

4242Performance

VimovoN d i US d EUNow approved in US and EU

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

Low Satisfaction GI RiskGI RiskM th 50% f OA ti tUp 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 are co prescribed a PPI3

Non-AdherenceNon-Adherence

and side effects2 are co-prescribed a PPI3

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

GPA5

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

GPA

43

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

43Performance

VimovoP 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

and 302, which demonstrated :

- Significant endoscopic gastric ulcer risk reduction vs EC

23.10% 24.30%

20%

25%

30%

ce

82% RR 71% RR

ulcer risk reduction vs. EC naproxen

- Gastric ulcers reduced even in 7.10%10%

15%

20%

GU

Inci

den

p<0.001 p<0.001

Gastric ulcers reduced even in presence of low dose aspirin

- Significantly lower rate of

4.10%7.10%

0%

5%

PN400218

EC-Nap216

PN400210

EC-Nap210

g ydiscontinuation due to UGI AEs (including DU) vs EC naproxen

n=218 n=216 n=210 n=210

PN400-301 PN400-302

4444Performance

R&D&

R&D

A changing landscape....requires continuous R&D l tiR&D evolution

• Challenges- Pricing and market accessPricing and market access- Tougher regulatory environment- Generic threat and patent expiry

• Opportunities- Breakthroughs in science- Ageing patient populations- Unmet medical needs

4646R&D

How are we addressing the R&D productivity h ll ?challenge?Leadership and operating 1 p p g

model1.

Attrition analysis and portfolioreview

2.e e

Organisational footprint3 Organisational footprint3.Ongoing

Capability build and external science

4.

47R&D 47

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

48R&D 48

2. Current therapy area focusBuild / Maintain Deprioritise

4949 49R&D

2. Criteria used for portfolio review

• Link between target / diseaseRight target engagementRight target engagement

Right tissue exposure

• Predictive biomarkers

• Bioavailability and tissue Right tissue exposure exposure• Human PK/PD prediction

Right safetyRight safety • Differentiating safety• Reactive metabolites

Right patientsRight patients

• Scientific evidence in lead indication

• Stratification of patient

Right commercialRight commercial

ppopulation

• Differentiated value

50

Right commercialRight commercial proposition• Embedded payer perspective

R&D 50

2. Significant changes to the pipeline

110

120

103

112423

14

1790

100103

9895 92

3410

10

11

9

25

24 17

60

70

8071

61

of p

roje

cts

20 31

34

325

25

25

40

50

60

Num

ber o

23

4134

4434

13186

10

20

30

17 23

0

10

FY2005 FY2006 FY2007 FY2008 FY2009 FY2010

51Phase 1 Phase 2 Phase 3/Reg LCMR&D 51

3. Our R&D footprintSmall moleculesBiologics

Sodertalje, SwedenMolndal, SwedenAlderley, UK

San Francisco, CAMontreal, Canada

Boston, MAWilmington, DE

Gaithersburg, MD

Cambridge, UK

Reims, France

Osaka, Japan

Bangalore, India

Shanghai, China

52l

52

4. Investing in capabilities to drive productivity

Clinical trial designand interpretation

Integrated payer strategy p

Personalised healthcare Predictive sciences

53R&D 53

Portfolio highlights 2010/2011

Launched/Approved Submitted New Indications Phase 3 Starts

EuropeEurope

TC-5214

JapanEurope

DapagliflozinE & USA E & USA

FostamatinibEurope

Europe, USA & China(500)

(PUB) China

Europe & USA Europe & USA

USANKTR-118

Vandetanib

Europe

Europe & USA

( )

Vandetanib

USAJapan

1st Line NSCLC Japan

p

Chi & E ( tf i IR FDC)Europe

Fluenz

54

China & Europe (metformin IR FDC)

R&D 54

Late stage Projects

5555R&D

Prevalence of Acute Coronary Syndromes (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

561. 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.

CVGI 56

Brilinta (ticagrelor) for ACSNext generation anti-platelet therapy• First reversibly binding oral ADP-receptor antagonist• Direct-acting; does not require metabolic activation• R id t ( ithi 30 i ) k l l l ithi 2 3 h

Next generation anti platelet therapy

• Rapid onset (within 30min); peak plasma levels within 2–3 hours• Greater & more consistent inhibition of ADP-induced platelet aggregation vs clopidogrel

Continued roll-out of strong clinical data• Compelling data seen in overall PLATO population (NEJM, Sept 2009) • Exciting data in patients undergoing invasive treatment for ACS (Lancet, Jan 2010) &

those undergoing CABG (ACC 2010)• ONSET & OFFSET studies - more rapid onset and offset along with greater platelet

inhibition than clopidogrel (Circulation 2009)• RESPOND study - consistent inhibition of platelet aggregation (Circulation 2009)

• The product has been approved in 32 countries, including in the EU, Iceland, and Norway, under the trade name Brilique and in Brazil and Malaysia under the trade name Brilinta. A il bl i G UK N D k d A t i It i tl d l t

Regulatory Status

Available in Germany, UK, Norway, Denmark and Austria. It is currently under regulatory review in 31 countries, including the US, China and India.

• Positive vote at FDA advisory committee meeting 28 July 2010. th

57

• PDUFA date 20th July 2011

57CVGI

Design of the pivotal 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

58

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 angina 58CVGI

Reduction in CV death, MI or stroke with ti lticagrelor

1211

13%

) 11.7Clopidogrel

10987ci

denc

e (% 9.8

Ticagrelor7654la

tive

inc

3210

Cum

u

HR 0.84 (95% CI 0.77–0.92), p=0.0003

Days after randomisation0 60 120 180 240 300 360

0

59K-M = Kaplan-Meier; HR = hazard ratio; CI = confidence interval 59CVGI

Brilinta Pegasus StudyF th i ti ti th t ti l f B ili tFurther 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:• Randomised, double-blind, parallel-group study• 21 000 patients worldwide21,000 patients worldwide.

In addition to ticagrelor or placebo, patients will take once-daily, concomitant

i i th (75 t 150 )aspirin 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.

months

60

g y

60CVGI

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, S i l d d P l

Diabetes growing rapidly in U.S. – current prevalence

rate 10.3%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 2030p

61Source: WHO 61CVGI

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

62Sources: 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 NIH 62CVGI

Dapagliflozin: an exciting new approach to di b tdiabetes

Submitted in US and EU i D 10

SGLT2 inhibition

Novel insulin independent mechanism

in Dec 10

pand site of action

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

Glucose excretionenabled throughSGLT2 inhibition

Effective at all stages of the disease and with widely used

63

widely usedanti-diabetic medications

Dapagliflozin is being jointly developed and marketed by AstraZeneca and Bristol-Myers Squibb.CVGI 63

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-on insulin +/- OAD

lozi

nud

ies*

with Metformin Add on SU• Add-on TZD• Add-on DPP4 (IIIb)

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

Dap

aglif

lcl

inic

al s

tu

• 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• Further phase 3 data to be presented during 2011

64* Studies in BOLD have been presentedOnglyza and dapagliflozin are jointly developed and marketed by AstraZeneca and Bristol-Myers Squibb.

64CVGI

Zibotentan ENTHUSE Phase III programme th f ll t f CRPCcovers the full spectrum of CRPC

Non Metastatic (M0)Asymptomatic or

Metastatic (M1)Asymptomatic or

Metastatic (M1c) Symptomaticy p

mildly symptomaticfor pain

Asymptomatic ormildly symptomatic

for pain

Sy pto at c

152,000 Patients per year 85,500 Patients per year79,500 Patients per year

Study 15Zibotentan vs

l b

Study 33Zibotentan + d t l

Study 14Zibotentan vs

l bplaceboCo-primary endpoints:PFS & OS( 1500)

docetaxel vsdocetaxel alone

Primary endpoint: OS

( 1044)

placeboPrimary endpoint:

OS(n=580)

(n=1500) (n=1044)

Stopped following the results of an early efficacy review by

Failed to meet primary endpoint

RecruitedData expected 2H 2011

ENTHUSE Phase III Programme

efficacy review by IDMC – unlikely to

meet primary endpoint

primary endpoint Data expected 2H 2011

65

g

65Oncology

Iressa – A new personalised healthcare h f l

alIn EGFR mutation-positive patients, Iressa reduces the risk of 1.01.0

approach for lung cancern

free

surv

iva progression by 52% vs. doublet chemotherapy

0.80.8

f Pro

gres

sion

Gefitinib EGFR M+ (n=132)Gefitinib EGFR M- (n=91)Carboplatin / paclitaxel EGFR M+ (n=129)Carboplatin / paclitaxel EGFR M- (n=85)0.4

0.6

0.4

0.6

Pro

babi

lity

o

Treatment by subgroup interaction test, p<0.0001

0.0

0.2

0.0

0.2

EU l f EGFR t ti iti NSCLC ll li f th

0 4 8 12 16 20 24Time from randomisation (months)

0.00 4 8 12 16 20 24

Time from randomisation (months)

0.0

EU approval for EGFR mutation positive NSCLC across all lines of therapy based on INTEREST, IPASS & full data review – July 09

NDA withdrawn in the US January 2011

66M+, mutation positive; M-, mutation negativePre-planned analysis of patients in which EGFR mutation status was available

Ongoing submissions across ROW

Oncology 66

The science behind PARP inhibitors leads to t t ti l th ti h itwo potential therapeutic mechanisms

Normal cellsCells with HR deficiency (e.g.

C )Cells with HR deficiency and Normal cells with drug-

Without PARP inhibition With PARP inhibition

Base-excision repair

Normal cells

Homologous recombination

PARP BRCA

cancer cells with BRCA mutation)

Homologous recombination

PARP BRCA

Base-excision repair

x

Base-excision repair

drug-induced PARP inhibition

Homologous recombination

BRCAx

Base-excision repair

induced PARP inhibition

Homologous recombination

BRCAPARP PARPxxPARP BRCA PARP BRCAx BRCAxBRCAPARP

Drug

PARP

Drug

xx

Repair RepairNo Repair

CELL DEATHRepair

Tumour-specific cell killing (monotherapy approach)

In cancer cells with HR deficiency, further prevention of DNA repair with a PARP inhibitor leads to cell death. Commercial opportunities from this mechanism include:

Chemotherapy (and radiation) regimens result in DNA damage in both tumours and normal tissues. PARP inhibition blocks

f th k h i f DNA i d h

Potentiation of chemotherapy (combination approach)1 2

from this mechanism include:• Tumours in patients with BRCA mutation (i.e. certain breast,

ovarian, prostate, pancreatic and endometrial tumours)• Tumours frequently associated with HR repair deficiency (e.g.

triple-negative breast cancer and serous ovarian)

one of the key mechanisms of DNA repair, and hence can potentiate the damage caused by these treatments. Cancer cells are particularly sensitive to PARP inhibition as PARP is frequentlyup-regulated. PARP inhibition should therefore enhance the

67

p g )• Tumours with other DNA repair defects

effect of the chemotherapy selectivelyon the tumour.

67Oncology

Olaparib: a potential new therapy for Serous iovarian cancer Positive Proof of Concept

in Ovarian cancer

160140120100

80asel

ine

(%)

The start of the Phase III

Start of Phase III trial in

80604020

0–20–40–60es

t cha

nge

from

b

Increasing tumour shrinkagegBRCA Ovarian CancerOlaparib

BRCA1

The start of the Phase III is planned for 2011

Start of Phase III trial in Serous Ovarian cancer contingent of reformulation

Serous & Non-Serous

–60–80

–100

Be BRCA1

BRCA2

100

80

60base

line

120

Ovarian Cancer

Serous BRCANon-serous BRCA

1st regulatory filingst d i 2015

–20

60

0

20

60

40

est

% c

hang

e fr

om b

–40

Serous non-BRCANon serous BRCA

Non-serous non-BRCA

expected in 2015–100

–60

Be

–80

6868Oncology

Vandetanib – FDA Approved for treatment of d d d ll th idadvanced medullary thyroid cancer

FDA l th 6th f A il 2011 l di i t i- FDA 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 USDesignation in the US

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

• Data presented at ASCO 2010p

- Regulatory submissions for MTC in EU filed in 3Q 2010

NSCLC:

- Based on phase 3 results, development in NSCLC terminated.

6969Oncology

MDD is a highly prevalent & debilitating disease ith i ifi t l l f t dwith significant levels of unmet need

illi l ld id ff t d b j43 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 23million globally 1

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

701 – 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 70

TC-5214: an exciting opportunity in MDD

TC-5214 Phase 2b adjunct study demonstrated clinical efficacy in MDD -Ongoing Phase 3

0

-2rom

t

PBO + CITTC-5214 + CIT

demonstrated clinical efficacy in MDD improving over duration of trial

g g

E iti Ph 2 lt

**

-4

-6

M-D

Sco

re fr

ed tr

eatm

ent

Impr

** p < 0.01P < 0.0001***

Exciting Phase 2 results

Phase 3 RENAISSANCE programme r nning to **

**

-8

-10

hang

e in

HA

Mof

rand

omis

e rovement

programme running to plan

Filings planned in the US**

***

-12

-

Mea

n ch

star

t oFilings planned in the US in 2012 and in the EU in 2015

*HAM-D = Hamilton depression Score

Week since randomisation1 2 4 6 814

-16

71Neuroscience 71

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

72

POINT

Neuroscience 72

NKTR-118 Addresses a significant medical need

• Constipation is a common and potentially debilitating adverse effecti t d ith i id l iassociated with opioid analgesic use.

- 230 million prescriptions for opioid analgesics in US alone in 20071

- Opioid-induced constipation (OIC) can occur in up to 90% of patients taking opioids2

- OIC significantly impacts patients’ quality of life and increases healthcare utilization• Patients with OIC visit a physician significantly more often than patients without OIC3,4

• NKTR-118 is designed to relieve constipation without affecting pain relief- It is a modified (PEGylated) mu-opioid antagonist that inhibits the effect of opioids

locally without preventing the CNS analgesic action

• Collaboration with Nektar Therapeutics announced 21st Sept 2009- AZ responsible for further development of NKTR-118 and NKTR-119

• Enrolment of the first patient in the Phase III clinical programme for NKTR-118 in March 2011

73

• Initial regulatory filings anticipated in 2013

1. IMS Health 2. Panchal et al. Int J Clin Pract. 2007;61(7):1181-1187. 3. Bell T, et al. J Pain. 2007;8(4):S71. Abstract 882.4. Bell T et al. J Pain. 2007;8(4):S75. Abstract 897.

73Neuroscience

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

Placebo NKTR-118 Placebo NKTR-118

5mg 25mg 50mg

74

P-values based on a log rank testWeek 1 of DB TreatmentP-values based on a Wilcoxon Test

Webster L et al. ACG 200974Neuroscience

Fostamatinib – Rheumatoid Arthritis• Fostamatinib is:

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

tissue degradation in RAtissue degradation in RA

• Phase IIb data (TASKi 2) published in the New England Journal of Medicine, demonstrated1Medicine, demonstrated- ‘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

• 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)( ), g ( )

751- 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 75Inflammation

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)

76

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 76

Fostamatinib opportunity in RA

Target Population

Patients who have an inadequate response to traditional disease-modifying anti-rheumatic

drug (DMARD) therapy

Target Population

drug (DMARD) therapy

Profile in phase II Improved patient QoLProfile in phase II

• Improved outcomes in RA patients with methotrexate background

Improved patient QoL

• Oral formulationt et ot e ate bac g ou d

treatment, as measured by ACR and DAS

• 36% of patients achieved a b 1 k

• No administration pain as associated with injected therapy

response by 1 week• Manageable safety and tolerability profile

• No need to visit hospital / physician office for infusions

77Inflammation 77

Fostamatinib demonstrates efficacy in RA patients with inadequate response to methotrexatewith inadequate response to methotrexate

Robust TASKi2 phase 2b trial reproduces ‘anti-TNF like’ efficacy seen in phase 2a

65

70

75

ACR20 ACR50 ACR70

45

50

55

60

65

% o

f pat

ient

s)

25

30

35

40

45

R re

spon

se ra

te (%

5

10

15

20

25

ACR

Placebo Fostamatinib 150 mg po qd Fostamatinib 100 mg po bid

0

5

1 4 8 12 16 20 24 1 4 8 12 16 20 24 1 4 8 12 16 20 24

Week

78Inflammation 78

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

th t tmethotrexate

NDA & MAA 2013FPI Sept 2010

MTX IR 12 monthMTX-IR, 12 month MTX 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

Japanese Phase I study

(US)

Japanese Phase I study

(US)

DMARD naiive and IR, n ~ 250(will begin Q1 2011)

79Inflammation

(US)(US)

79

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

Ceftazidime + NXL104

80Infection 80

Zinforo (ceftaroline): A late-stage, next ti h l i tibi tigeneration cephalosporin antibiotic

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

commonly implicated in cSSSI and CAPB, 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

8181Infection

Complicated skin and soft tissue infections ( SSTI) d it i d b t i l(cSSTI) and community acquired bacterial pneumonia (CABP)

cSSTI

8282Infection

Zinforo: next generation cephalosporin tibi tiantibiotic

Submitted in EU Dec 10 1o

Endpoint

D t t d d

Non-inferiority

-10 0 10 20

Response (% Difference)

Endpoint10% NI margin

Population

Demonstrated good efficacy inPhase 3 cSSTI and

CANVAS 1

cSSTI

Modified intent-to-treat

Clinically evaluable

Modified intent-to-treat 1.2

CAP

Differentiating attributes

CANVAS 2

FOCUS 1

Clinically evaluable

Clinically evaluable

Modified intent-to-treat

- extended spectrum coverage, incl. MRSA acttivity in skin, coupled

FOCUS 2

CAPClinically evaluable

Modified intent-to-treat

Clinically evaluable

with a favourable tolerability profile

Favours Zinforo

Favours Comparator

8383Infection

Strategy Update& Planning AssumptionsAssumptions2011+

Planning Assumptions84

AZN: Strong financial performance1999 20091999-2009

450

500CAGR

Core EPS +16%

C O P fit 15%

300

350

400 Core Op Profit +15%

150

200

250Sales +8%

50

100

150

01999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

85Source: AZ annual reports, implied core margins 85Planning Assumptions

Strong Operating Performance: 2006-2010

33 3 6 2

$6.71

5,630,4

33.3 6.2

9.8

$6.71

9,1

20 4

25,4

n 17 8

26.5

3,1$3 86

15,4

20,4

$b

17.8

4.2

13.6

11,8

8,7

$3.86

10,4

8,7

5,4Revenue COGs SG&A Pre R&D

Operating ProfitR&D Operating Profit EPS

8686Planning Assumptions * Graph illustrated as core measures. 2006 2010

Strong cash generation: 1999-2010

90

100($bn)

Reinvestment of 45% of Operating cash flow (excluding major acquisitions)

70

80

9028.0

50

60

100.0

14.0

14.5

30

403.3

22Div

0.50

10

20

2.217.7SBB

Div

3.65

Capex Acquisitions&

Disposals

MerckPayments

Distributedto

Shareholders

Other 2010 NetFunds

1999Net

Funds

Pre-R&DPost Tax

Cash Flow

After TaxR&D* -10

0

87* R&D includes internal R&D expenditures, net of tax and depreciation/amortisation,and externalisation. Source: AZ annual reports 87Planning Assumptions

Strategic priorities

Making the mostmeaningful difference to patient health through great

medicines

Business Growth

BusinessShape

Culture &BehaviourPipeline

medicines

• 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- Disease area focus

- Reduce site footprint

• Collaboration- Externalisation

Build stronger

Lean & agile

• Value orientation

the new products

• Drive growth in emerging markets

Sales & Marketingand G&A

• Focus Capexon productivity i t- Build stronger

relationship with payers

improvements

Our values

Manage for long-term shareholder value

8888Planning 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 continue,including US healthcare reformincluding US healthcare reform- No further “step-change” in evolution of these pressures

• AstraZeneca assumptions- No material M&A or disposals

- No premature loss of market exclusivity for key products- No material change in Fx rates for principal currencies vs average January

2010 rates2010 rates

8989Planning Assumptions

Guidance for 2011 (Core basis)

Revenue Flat to low single-digit decline at CER

Core Gross Margin Above 80% and broadly inline with 2010

Core Pre-R&D Margin 48-54%, Near top of mid-term planning range, but below 2010

$Net Finance Expense ~$500m

Other Operating Income <$800m

Tax Rate ~21% on reported basis

Core EPS Range $6.95 to $7.25 *

9090Planning Assumptions

* Increased the Core earnings per share target by $0.45 in conjunction with the announcement of

the tax settlement at the end of March. On 28th of April added a further $0.05 per share to the

target to recognise the one-off benefit from the patent settlement with PDL.

Currency basis for 2011 guidance

• Currency: January 2011 average rates:- $1 = £ 0.636

$1 = EUR 0 752- $1 = EUR 0.752- $1 = SEK 6.720- $1 = JPY 82.6

• Actual 2011 rates may differ materially from January 2011 rates upon which guidance is based

• 2011 currency sensitivity estimator is available atwww.astrazeneca.com

9191Planning Assumptions

Estimated impact of currency movementsl d ion sales and earnings

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

EUR 2 1% 3 5%

Sales Core earnings

EUR 2.1% 3.5%

GBP 0.3% -1.9%

SEK 0 1% -2 2%SEK 0.1% 2.2%

JPY 0.8% 0.7%

Other Currencies 2.4% 4.3%% %

TOTAL 5.7% 4.4%

9292Planning Assumptions

Planning Assumptions 2010-14: Update• Grow the Business

- Revenue in the range of $28bn to $34bn per annum over the periodRisk adjusted contribution from the pipeline lowered to the range of- Risk adjusted contribution from the pipeline lowered to the range of $3bn to $5bn

- Sustain double digit growth in emerging marketsR d th iddl f th b 2014- Revenue around the middle of the range by 2014

• Reshape the business- Maintain gross margin >80%- Core Pre-R&D operating margin in the range of 48-54 percent- Restructuring programmes on trackRestructuring programmes on track

• Cash generation and investmentAchieving revenues and margins within planning range will drive- Achieving revenues and margins within planning range will drive strong cash flow

- Reinvest 40 to 50% of after tax pre-R&D cash flow to drive future growth and value

93Planning Assumptions

growth and value- Cash returns to shareholders via progressive dividend and periodic

share repurchases 93

Business Growth

Strategic Initiatives

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

Planning assumptions2010-2014

• Revenue in the rangeq- Symbicort

• Successfully commercialise recent launchesand the next wave*

Revenue in the range of $28bn to $34bn per annum over the period

• Risk adjustedand the next wave- ONGLYZATM

- Brilinta- Vimovo

- Zibotentan - NKTR-118- TC-5214

• Risk adjusted contribution of $3bnto $5bn from recent launches, pipeline &

- Vandetanib- Dapagliflozin

- Zinforo (Ceftaroline)- CAZ104- Fostamatinib

in-licensing

• Revenue around the middle of range by

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

g y2014

94

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. 94StrategyStrategy

Business Shape

Strategic Initiatives

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

Planning assumptions2010-2014

Drive 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

95

Focus on working capital management

95Strategy

Cash generation & Investment

Business focus on cash flow generation

Reinvest 40 to 50% of after-tax pre-R&D cash

flow to drive future growth and value

Residual cash flow available for

• Achieving revenue and Core pre-R&D margins

growth and value

• Internal and external R&D

• Specific business needsp g

in planning range

• Delivering restructuring programmes

• Tangible assets and information technology

• Debt repayment

• Progressive dividendprogrammes

• Tight management of working capital, tax & interest

• Progressive dividend policy

• Share repurchasesinterest

9696Strategy

In summary….

Reinvest

Pre-R&D Marketed Products

Reinvest 40-50%

post tax cash flow

Revenue Pre R&D Margin Pre-R&D Other

Pre-R&DMargin48-54%

$28-34bn Margin48-54%

Pre R&D post tax

cash flowbusiness needs &

debt serviceWorking capital, Tax & interest management

Shareholder distribution

9797Strategy

Example: 2010 Strong Cash Generation - Use of C hCash

37% reinvestment$bn

37% reinvestment

98* R&D includes internal R&D expenditures, net of tax and depreciation/amortisation,and externalisation. Source: AZ annual reports 98Strategy

Restructuring Programme: Phase 1 complete 2007 20092007-2009

P C tHeadcount Impact Programme Cost2007-2009 $m

Headcount Impact2007-2009

Global Supply Chain 4,250 (1,003)

SG&A 6,750 (1,216)( )

R&D 1,600 (288)Annual benefits

2010 $m

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

99Strategy 99

Restructuring Programme 2010-2014

Programme Cost2010-2014 $m

Headcount Impact2010-2014

Global Supply Chain 2,240 (340)

SG&A 4,540 (600)( )

R&D 3,620 (1,060)*Annual benefits

2014 $m

Total 10,400 (2,000) 1,900

100* Of which 3500 related to new programme: balance from previously announced programmeStrategy 100

Net headcount developments: 2006-2010

GlobalSupply Chain SG&A R&D AstraTech Biologics

Emerging Markets

(2,000)

0

(6,000)

(4,000) Wave 112,600

-6,400

(10 000)

(8,000)

(12,000)

(10,000)

(16,000)

(14,000) Wave 22,600

1012006-2010 headcount movements are shown on a Full Time Equivalent basisand include AZ employees and contractors

101Strategy

Key Industry Growth Drivers

102

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

103Growth Drivers 103

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

104Source: Kotlikoff & Hagist, Dec 2005

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

104Growth Drivers

Worldwide, the top 10 pharmaceutical therapy t d t b $80b 2007 14areas are expected to grow by $80bn 2007-14

80 000$m

80,000

70,000

60 00060,000

50,0002007

2014

40,000

30,000

20,000

10,000

0

105Source: Evaluate Pharma 105Growth Drivers

Emerging market GDP set for further expansion…

G7 countries E7 countries

25,000

20,000

billio

ns)

15,000

al G

DP

(US

$

10,000Rea

-

5,000

106Source: Global Insight Quarterly

2007 2013-2038 ave.

106Growth Drivers

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

107Note: R2=0.8, N=63, United States outlier excluded from the regression analysis. Source: World Market Monitor; IMS.

GDP per capita US$, 2008

107Growth Drivers

Example - China is investing to improve h lth dhealthcare coverage and access

P l i d i i h h 3 h

China

Population covered increasing … … through 3 schemes

~1,400m 1. UBMI – Urban employees- On average 8% of payroll contributed

(~6% by employer)- Up to 400% of annual salary reimbursed

according to schedule- $42bn of funds collected for insurance in 2008

560m

$

2. UCMS – Urban residents not covered by UBMI- Subsidised by government

560m - Covers elderly, children, etc.- $2bn of funds collected for insurance in 2008

3. RCMS – Rural residence

20152006

- Subsidised by government- Covers rural families- $12bn of funds collected for insurance in 2008

108Source: MOH; China infobank; Literature research; AZ analysis

20152006

108Growth Drivers

Emerging markets are forecast to contribute 70% f h th i th t 5~70% of pharma growth in the next 5 years

Worldwide pharmaceutical sales

$955bn$130bnEmerging Markets 70%

$55bnEstablished Markets 30%

$765bn

2009E 2014E

Emerging markets projected to grow at a 12% CAGR from 2009-2014

1091 Emerging markets are all markets outside EU-15, Norway, Switzerland, Iceland; US, Canada, Japan,Australia, New Zealand. Source: IMS extrapolation. 109Growth Drivers

Exploding emerging market ‘middle-class’

BRIC population with household income above $5,000

+21% p.a.

2014E1,864 million

2009900 million

2004270 million

110

1,864 million900 million270 million

Source: Economist Intelligence Unit, 2010, China NSBA, Indian NFHS, RAND, Brazil PNAD 110Growth 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

111Source: IMS 111Growth 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 market growth rates 2003 2009 (%pts)Standard deviation of year-on-year market growth rates, 2003-2009 (%pts)

Portfolio of ~20 emerging

markets2.0

markets

Thai

land

Cze

chR

epub

lic

Sout

h A

fric

a

Phili

ppin

es

Indo

nesi

a

Alg

eria

audi

Ara

bia

Rom

ania

Hun

gary

Arg

entin

a

Taiw

an

Vene

zuel

a

Rus

sian

Fe

dera

tion

Pola

nd

Indi

a

Sout

h K

orea

Turk

ey

Mex

ico

Bra

zil

Chi

na

112Source: IMS

SPSaS

The variation of the portfolio is lower than almost all markets individually112Growth Drivers

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

2010 Sales12010 Sales1

Asia-Pacific

$1.9bnLatin America

CEEMEA2$1.4bn$1 9bn

113

$1.9bn1 Actual exchange rate. 2 Central and Eastern Europe, Middle East, and Africa (including Turkey); Source: AZ

113Growth Drivers

Both BRIC-MT and small and mid-sized emerging markets have contributed significantly to our growthmarkets have contributed significantly to our growth

AbsoluteCAGR

Absolute growth

$5.2bn 18%$3.3bn

2004-10 AZ emerging markets sales by brand1

$2 6b$3.6bn 15%$1 5bn$2.6bn

$1.9bn

$ 15%$1.5bn

Small and mid-sized EMs $2 6bn

$1.1bn

$1.9bn

22%$1 8bn

BRIC-MT$1.7bn

$2.6bn

$0.8bn

22%$1.8bn

1141 Actual exchange rate. Source: AZ internal

201020072004

114Growth Drivers

Brands dominate the market as brands are the b t f litbest proxy for quality

Emerging market sales1 2009 Ex-manufacturerEmerging market sales , 2009, Ex manufacturer

~$50bn

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

(~28%)

~$90bn(~50%)( 50%)

Branded i i l

Branded i

Commodity i

~$10bn (~5%)

TotalPatented i i loriginalsgenericsgenerics originals

1151 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. 115Growth Drivers

Across emerging markets we have a highly f l tf li f b dsuccessful portfolio of brandsAZ product sales in emerging markets, 2010

$608m

$619m

$391m

$608m

$372m

$352m

$342m

$307m

$305m

$249m

1161 Actual exchange rates. 2 Includes sales of AZ branded metoprolol succinate (e.g. Seloken ZOK) and metoprolol tartrate (e.g. Seloken). Source: AZ internal 116Growth Drivers

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

+27% $29m $22m$15

+12%$186m+18%

$16m$7m

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

201020072004201020072004 201020072004

>130 competitorsLOE1: 2001

~9 competitorsLOE1: 1999

~8 competitorsLOE1: 2001

1171 Loss of Exclusivity. Source: AZ; IMS; EvaluatePharma. 117Growth 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 2009 i i t bli h d k tindexed to 2009 margins in established markets

72%

65%

Our current emerging markets margins are similar to our Europe business5

55%5 years ago

200920072004

118Source: AZ internal 118Growth 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 geographicfoot-print by

increasing our

Broaden portfolioto selectively

include branded generics

involvement in high-growth small

and mid-size marketsmarkets

119119Growth Drivers

Our goal is to continue double-digit growth, with i k t b i 25% f AZ lemerging markets becoming ~25% of AZ sales

by 2014AZ emerging markets revenue goal

$12bn

$8bn

$4bn

20142009$0bn

120120Growth Drivers

Newsflow 2011e s o 0

Newsflow

2011 Newsflow

Brilinta/BriliqueMay Jun Jul Aug Sept Oct

DapagliflozinFurther Phase III data – ADA w/c 24th of June

US approval decision - PDUFA dateEU launches & ROW

20th Jul

24th JunFurther Phase III data ADA w/c 24 of JuneUS approval decision - PDUFA dateONGLYZAONGLYZA-metformin IR FDC EU approval decision

28th Oct

ZibotentanPhase 3 data (Study M1c)

decision

122122Newsflow

Investor Relations esto e at o sContacts

IR Contacts

Investor Relations Contacts

Investor Enquiries London:

Jonathan Hunt jonathan.hunt@astrazeneca.com +44 207 604 8122 mob: +44 7775 704032

Karl Hård karl.j.hard@astrazeneca.com +44 207 604 8123 mob: +44 7789 654364

Nicklas Westerholm nicklas.westerholm@astrazeneca.com +44 207 604 8124 mob: +44 7585 404950Nicklas Westerholm nicklas.westerholm@astrazeneca.com 44 207 604 8124 mob: 44 7585 404950

In estor Enq iries USInvestor Enquiries US:

Ed Seage edward.seage@astrazeneca.com +1 302 886 4065 mob: +1 302 373 1361

Jorgen Winroth jorgen.winroth@astrazeneca.com +1 212 579 0506 mob: +1 917 612 4043

124124IR Contacts

Cautionary Statement RegardingForward Looking StatementsForward-Looking Statements

In order to utilise the ‘Safe Harbor’ provisions of the United States Private SecuritiesLitigation Reform Act of 1995, AstraZeneca is providing the following cautionarystatement. This presentation contains forward-looking statements with respect tothe financial condition, results of operations and businesses of AstraZeneca. Bytheir nature forward-looking statements and forecasts involve risk and uncertaintytheir nature, forward looking statements and forecasts involve risk and uncertaintybecause they relate to events and depend on circumstances that will occur in thefuture.

There are a number of factors that could cause actual results and developments todiffer materially from that expressed or implied by these forward-lookingstatements. These factors include, among other things, the loss or expiration ofpatents marketing exclusivity or trade marks; exchange rate fluctuations; the riskpatents, marketing exclusivity or trade marks; exchange rate fluctuations; the riskthat R&D will not yield new products that achieve commercial success; the impactof competition, price controls and price reductions; taxation risks; the risk ofsubstantial product liability claims; the impact of any failure by third parties to supplymaterials or services; the risk of delay to new product launches; the difficulties ofobtaining and maintaining governmental approvals for products; the risk of failure toobserve ongoing regulatory oversight; the risk that new products do not perform aswe expect; and the risk of environmental liabilities

125

we expect; and the risk of environmental liabilities.

125

Appendicesppe d ces

Appendices

I d t R&D S d th30%

Industry R&D Spend growth

20%

25%

15%

10%

0%

5%

-5%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Market Growth yoy

Appendices

G y y

Source: EvaluatePharma Feb 2011 127

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 128