Astrazeneca Plc · LSE:AZN
Astrazeneca — Debt Investor Presentation (July 2020)
34 slides from Astrazeneca's debt investor presentation, Jul 30, 2020
Slide 1: Fixed-income investor update - H1 2020
Fixed-income investor update - H1 2020 30 July 2020
Slide 2: Forward-looking statements disclaimer
Forward-looking statements disclaimer In order, among other things, to utilise the 'safe harbour' provisions of the US Private Securities Litigation Reform Act of 1995, AstraZeneca (hereafter ’the Group’) provides the following cautionary statement: this document contains certain forward-looking sta
Slide 3: Disclaimer and Non-GAAP measures
Disclaimer This presentation is neither an offer to sell nor a solicitation of an offer to buy any securities and shall not constitute an offer, solicitation, or sale in any jurisdiction in which an offer, solicitation, or sale is unlawful. Non-GAAP measures This presentation contains financial meas
Slide 4: Key messages
Key messages Another period of improving the top line, operating leverage and cash Continuing the focus on the pipeline and growth through innovation Financial priorities and guidance remain unchanged Balanced and diversified company – by geography, therapy area, specialty/primary 4
Slide 5: Business update
Astrazeneca What science can do Business update
Slide 6: H1 2020: performance underpins leading response to COVID19
H1 2020: performance underpins leading response to COVID19 Key highlights Total revenue up by 14%; modest benefit from COVID-191 stocking Strong revenue performance: new medicines (+45%)2; Oncology (+31%), New CVRM3 (+11%), Respiratory & Immunology (+7%) and Emerging markets (+15%) Core operating pr
Slide 7: H1 2020: total revenue +14%; new medicines leading
H1 2020: total revenue +14%; new medicines leading Increasing contribution from newest launch medicines bodes well Strong revenue New medicines growth continued drove growth $m 700 22% H1 2020: 18% 600 +$2.0bn 17% 14% 500 Total revenue growth, per cent 11% 11% incremental revenue of the new medicine
Slide 8: H1 2020: continued strong, diversified performance
H1 2020: continued strong, diversified performance 2020 guidance and a future of sustainable growth underpinned Q2 2020 change ratio H1 2020 change ratio $m % % $m % % Product sales 6,048 9 100 12,359 13 100 Oncology 2,609 24 43 5,111 28 41 New CVRM 1,153 12 19 2,251 10 18 Respiratory & 1,117 (8) 19
Slide 9: Tagrisso and Imfinzi
Tagrisso and Imfinzi Europe and EMs continued strong growth Tagrisso: 45% growth Imfinzi: 52% growth $m Approvals 86 (1L) and 89 (2L)1 $m Approvals 623 (NSCLC4), 83 (ES-SCLC), 173 (UC5) 1,000 • US +30% (36% of total) 500 • US +21% (60% of total) Low single-digit sequential Mature demand in NSCLC und
Slide 10: Lynparza
Lynparza Continued strong growth, global expansion $m Lynparza Approvals 75 (ovarian), 67 (breast), 38 Lynparza $m 60% growth (pancreatic) and 1 (prostate cancer) collaboration revenue 500 1,000 • US +55% (50% of total) 400 1st-line OC1 drove growth 800 • Europe +56% 300 600 SOLO-1 trial OC use drov
Slide 11: Calquence and Enhertu
Calquence and Enhertu Calquence inflection continued; Enhertu launch progressed Calquence Enhertu $m Approvals: 13 (CLL1) and 17 countries (MCL2) $m Approvals: US, Japan (mBC3 HER2+ 3L) 120 • Global $195m; US $193m 30 • US $36m $76m in-market sales by 100 Daiichi Sankyo; ~1/3 share • US CLL of patie
Slide 12: BioPharmaceuticals: New CVRM
BioPharmaceuticals: New CVRM Diabetes growth improved during Q2 (+8%) Diabetes: 5% growth driven by Farxiga Brilinta: growth $m SGLT21 class volume continues ahead of other T2D medicines $m continued globally 800 • Farxiga +21% • Brilinta +17%: growth in all regions; 700 majority of sales from acute
Slide 13: BioPharmaceuticals: Respiratory & Immunology
BioPharmaceuticals: Respiratory & Immunology Pulmicort hit by COVID-19; other Respiratory in solid growth Respiratory: Encouraging growth everywhere $m 7% growth except Pulmicort COVID-19 hit in China 1,600 • US +30% • Europe +8% 1,400 Symbicort (+46%); sustained volume Symbicort (+4%); regional per
Slide 14: Emerging markets
Emerging markets Growth further diversified Total revenue EMs +15%, ex-China EMs +15%, China +14% Revenue continued to grow ahead of the long- Diversified growth: AP1 +7%, MEA2 +12%, LA3 +15%, Russia +67% term ambition of mid to high single-digit growth 15% 15% • New medicines +79% 12% 32% of total
Slide 15: 2020 guidance unchanged
2020 guidance unchanged Total revenue Core EPS Increase by a high single-digit to Increase by a mid- to a low double-digit percentage high-teens percentage Guidance is at CER. AstraZeneca recognises the heightened risks and uncertainties from the impact of COVID-19 referred to in the results announc
Slide 16: Late-stage pipeline continued strongly
Late-stage pipeline continued strongly Major news items since Q1 2020 results update Medicine Indication (geography) Regulatory Lynparza ovarian cancer (1L1, HRD+2) (PAOLA-1) (US) approvals pancreatic cancer (1L, BRCAm3) (EU) prostate cancer (2L4, HRRm5) (US) Farxiga HF6 CVOT7 (US) Brilinta CAD8/T2D
Slide 17: Late-stage pipeline events in the 2020-2021 timeframe
Late-stage pipeline events in the 2020-2021 timeframe Busy news flow continues; underpinning consistent revenue growth H2 2020 H1 2021 H2 2021 Regulatory Imfinzi - ES-SCLC (EU, JP) Lynparza - pancreatic (1L, BRCAm) (JP) - Lynparza - OC (1L) (PAOLA-1) (EU, JP); breast (BRCAm) (CN); Lynparza - prostat
Slide 18: Financial update
Astrazeneca What science can do
Slide 19: Reported profit and loss
Reported profit and loss H1 2020 change % total Q2 2020 change % total $m % revenue $m % revenue Total revenue 12,629 14 100 6,275 11 100 - product sales 12,359 13 98 6,048 9 96 - collaboration revenue 270 107 2 227 116 4 Gross margin 80.5% (0.3) pp2 83.7% 1.0 pp Operating expenses1 8,322 3 66 4,128
Slide 20: Core profit and loss
Core profit and loss H1 2020 change % total Q2 2020 change % total $m % revenue $m % revenue Total revenue 12,629 14 100 6,275 11 100 - product sales 12,359 13 98 6,048 9 96 - collaboration revenue 270 107 2 227 116 4 Gross margin 81.1% (0.6) pp 84.3% 0.8 pp Operating expenses 7,256 7 57 3,656 6 58
Slide 21: Cash flow
Cash flow $0.7bn improvement in operating cash flow Net debt increased as a result of the March Key cash-flow metrics $bn payment of two-thirds of the annual dividend improved in H1 2020 • Net cash from operating activities 0.2 $1,179m versus $491m (H1 2019) 2.4 + improved underlying business perfor
Slide 22: Financial priorities
Financial priorities H1 2020 results support the strategic journey Deleveraging / dividend growth Revenue growth • As cash flow improves, deleveraging and progressive dividend policy +14% • Unchanged priorities for capital growth in total allocation revenue in H1 2020 Operating leverage • 57% ratio
Slide 23: Net debt position
Net debt position 30-Jun-20 31-Dec-19 $m $m Gross borrowings (19,747) (18,227) Cash & cash equivalents 5,673 5,369 Other investments 442 911 Net derivative financial instruments (18) 43 Closing net debt1 (13,650) (11,904) 1. Net debt is a non-GAAP measure. The equivalent GAAP measure to net debt is
Slide 24: Liquidity, debt and rating summary
Liquidity, debt and rating summary • Strong liquidity at 30 June 2020 • Group cash and investments of $6.1bn • Undrawn $4.1bn committed bank facilities ($3.4bn of which mature in 2022) • Access to diverse sources of funding through US and European debt programme, Euro and USCP programme Utilisation
Slide 25: Smooth bond maturity profile with 9 ½ years average life
Smooth bond maturity profile with 9 ½ years average life Debt Maturity Profile at 30 June 2020 1 4,000 3,500 3,000 2,500 $m 2,000 1,500 1,000 500 0 2020 2021 2022 2023 2024 2025 2027 2028 2029 2031 2037 2042 2045 2048 USD EUR GBP Commercial Paper Overdraft, leases, bank collateral 1. Notional bond v
Slide 26: Summary
Astrazeneca What science can do
Slide 27: AstraZeneca in summary
AstraZeneca in summary Pipeline-driven transformation Global presence Strong pipeline Improving financials Balanced specialty and 17 Phase III medicines and Nine blockbuster medicines primary-care franchises1 significant lifecycle projects Returned to sustainable Leading emerging markets Advancing e
Slide 28: Fixed-income investor update - H1 2020
Fixed-income investor update - H1 2020 30 July 2020
Slide 29: Appendix
AstraZeneca What science can do Appendix
Slide 30: Geographic growth
Geographic growth Strong performance in all major regions China 14% 21% of Product Sales Europe 20% US 19% of 13% Japan 2% 33% of Product Sales 10% of Product Sales Product Sales Other RoW 26% Emerging Markets 4% of (ex-China) Product Sales 13% of 15% Product Sales FY 2020 Regional Product Sales as
Slide 31: H1 2020 Reconciliation of Reported to Core Financial Measures
H1 2020 Reconciliation of Reported to Core Financial Measures Intangible Asset Diabetes Reported Restructuring Amortisation & Other1 Core2 Alliance Impairments $m $m $m $m $m $m Gross Profit 10,225 35 33 - 5 10,298 Distribution Expense (191) - - - - (191) R&D Expense (2,777) 16 49 - - (2,712) SG&A E
Slide 32: Q2 2020 Reconciliation of Reported to Core Financial Measures
Q2 2020 Reconciliation of Reported to Core Financial Measures Intangible Asset Diabetes Reported Restructuring Amortisation & Other1 Core2 Alliance Impairments $m $m $m $m $m $m Gross Profit 5,291 16 16 - - 5,323 Distribution Expense (104) - - - - (104) R&D Expense (1,389) 5 7 - 1 (1,376) SG&A Expen
Slide 33: Prudent treasury risk-management policies
Prudent treasury risk-management policies The Company operates with a centralised Treasury structure so that key Treasury risks are managed at a Group level. Liquidity Policy • Substantial level of available cash and unutilised credit facilities • Group funding centrally managed Investment policy •
Slide 34: Use of AstraZeneca conference call, webcast and presentation slides
Use of AstraZeneca conference call, webcast and presentation slides This presentation is neither an offer to sell nor a solicitation of an offer to buy any securities and shall not constitute an offer, solicitation, or sale in any jurisdiction in which an offer, solicitation, or sale is unlawful. Th