Astrazeneca Plc · LSE:AZN
Astrazeneca — FY2004 Earnings Presentation
29 slides from Astrazeneca's earnings presentation, January 2005
Slide 1: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward- ANNUAL looking statements RESULTS 2004 In order to utilise the ‘Safe Harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995, AstraZeneca is providing the following cautionary statement. This presentation contains forward-looki
Slide 2: Headline results FY 04
Sir Tom McKillop Chief Executive Officer ANNUAL BUSINESS RESULTS REVIEW 2004 ANNUAL Headline results FY 04 RESULTS 2004 2004 2003 Actual CER $m $m growth growth Sales 21,426 18,849 +14% +9% Operating profit 4,770 4,111 +16% +15% EPS (pre-excep) $2.11 $1.78 +19% +18% EPS $2.28 $1.78 +28% +27% Dividen
Slide 3: Headline results 4Q 04 and 2004 sales by therapy area
ANNUAL Headline results 4Q 04 RESULTS 2004 2004 2003 Actual CER $m $m growth growth Sales 5,799 4,875 +19% +16% Operating profit 1,319 849 +55% +68% EPS $0.59 $0.38 +55% +68% ANNUAL 2004 sales by Therapy Area RESULTS 2004 Sales CER $m % growth GI 5,918 -4% CV 4,777 +17% Oncology 3,376 +16% Neuroscie
Slide 4: Growth portfolio momentum and share price performance
‘Growth’ portfolio showing ANNUAL strong momentum RESULTS 2004 12,000 +30% 10,000 8,000 $m 6,000 4,000 2,000 0 FY 00 FY 01 FY 02 FY 03 FY 04 SEROQUEL CASODEX ATACAND ZOMIG ARIMIDEX NEXIUM SYMBICORT FASLODEX IRESSA CRESTOR ANNUAL Share price performance - 2004 RESULTS 2004 110 2004 performance 105 10
Slide 5: 2004 priorities
ANNUAL 2004 priorities RESULTS 2004 2004 EPS target in range of $2.00 to $2.15 Continue to build Crestor® Drive Oncology portfolio Progress to US market leadership for Nexium® and Seroquel® First launches for Exanta® and register chronic claims Advance development projects Continuous improvement in
Slide 6: Crestor: continue to build
ANNUAL 2004 priorities RESULTS 2004 Continue to build Crestor® Approved in 67 markets; launched in 56 Sales $908 million ANNUAL Crestor® – TRx share non-US RESULTS 2004 12.1% Canada 10.3% Netherlands 8.0% Italy TRx 4.4% France Time since launch Share of C10A1, Statins Sources: Can, NL, It, Fr, UK -
Slide 7: Crestor US market share and safety
ANNUAL Crestor® US market share RESULTS 2004 9% 8% 7% Market Share 6% 5% 4% 3% 2% 1/2 1/16 1/30 2/13 2/27 3/12 3/26 4/9 4/23 5/7 5/21 6/4 6/18 7/2 7/16 7/30 8/13 8/27 9/10 9/24 10/8 10/22 11/5 11/19 12/3 12/17 12/31 1/14 NRx TRx Source: IMS Health, NPA Plus Weekly Jan. 2004 ANNUAL Crestor® Safety -
Slide 8: Oncology
ANNUAL 2004 priorities RESULTS 2004 Continue to build Crestor® Drive Oncology portfolio ANNUAL Oncology RESULTS 2004 Oncology sales $3,376 million, up 16 percent Casodex® sales $1,012 million, up 11 percent Sales outside US up 18 percent on use in early prostate cancer Faslodex sales $99 million; EU
Slide 9: Arimidex: strong growth continues
ANNUAL Arimidex® – Strong Growth Continues RESULTS 2004 80,000 70,000 60,000 50,000 s Sales, US$ 000' 40,000 30,000 20,000 10,000 0 Ju 2 Ju 3 Ju 4 No 02 De 2 No 3 De 03 No 04 04 M 02 Ju 2 Au 2 S e 02 Fe 3 M 03 Ju 3 Au 03 S e 03 Fe 4 M 04 Ju 4 Au 04 S e 04 Ap 2 Ja 2 M 3 Ap 3 Ja 3 M 4 Ap 4 O 2 O 3 O 4
Slide 10: Oncology and Iressa
ANNUAL Oncology RESULTS 2004 Oncology sales $3,376 million, up 16 percent Casodex® sales $1,012 million, up 11 percent Sales outside US up 18 percent on use in early prostate cancer Faslodex® sales $99 million; EU approved in March 04 Arimidex® sales $811 million, up 48 percent Iressa® sales $389 mi
Slide 11: Nexium
ANNUAL 2004 priorities RESULTS 2004 Continue to build Crestor® Drive Oncology portfolio Progress to US market leadership for Nexium® and Seroquel® ANNUAL Nexium® RESULTS 2004 Full year sales $3,883 million, up 15 percent US sales $2,716 million, up 10 percent Other markets $1,167 million, up 29 perc
Slide 12: Nexium US market share
ANNUAL Nexium® US TRx GE market share RESULTS 2004 GE TRx Market Share 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 1 2 2 3 3 4 4 01 1 02 2 03 3 04 4 1 2 3 4 02 03 04 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 n- n- n- n- b- b- b- ug ug ug ug pr pr pr ct ct ct ct ec ec ec ec Ju Ju Ju Ju Fe
Slide 13: PPI market growth trends and Seroquel
PPI Market - TRx Extended Units ANNUAL Growth Trends* RESULTS 2004 Q103 Q203 Q303 Q403 Q104 Q204 Q304 Q404 76% 70% TRx EU Growth % 56% 50% 47% 33% 31% 30% 26% 26% 22% 18% 17% 18% 16% 15% 15% 16% 14% 9% 11% 12% 9% 10% 3% 0% -3% -1% -10% -7% -30% -34% -40% -38% -42% -50% PPI omeprazole PPI ex-omep Nex
Slide 14: Seroquel: US NRx and market growth
ANNUAL Seroquel®: US NRx in anti-psychotic market RESULTS 2004 Market share 35% 30% Seroquel® 25% Risperdal® 20% Zyprexa® 15% 10% Abilify® 5% Geodon® 0% Symbyax® 0 1 2 3 4 0 1 2 3 4 0 1 2 3 4 00 04 02 03 04 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 l-0 l-0 l-0 l-0 l-0 n- n- n- n- n- ct ct ct ct ct pr pr pr pr p
Slide 15: Exanta
ANNUAL 2004 priorities RESULTS 2004 Continue to build Crestor® Drive Oncology portfolio Progress to US market leadership for Nexium® and Seroquel® First launches for Exanta® and register chronic claims ANNUAL Exanta® RESULTS 2004 Orthopaedic Surgery launch in 10 countries Registration in chronic ind
Slide 16: 2004 priorities
ANNUAL 2004 priorities RESULTS 2004 Continue to build Crestor® Drive Oncology portfolio Progress to US market leadership for Nexium® and Seroquel® First launches for Exanta® and register chronic claims Advance development projects ANNUAL 2004 priorities RESULTS 2004 Continue to build Crestor® Drive
Slide 17: 2004 in summary
ANNUAL 2004 in summary RESULTS 2004 Challenging market conditions for Crestor® Strong performances Oncology Nexium® Seroquel® Disappointments Exanta® and Iressa® Strong financial performance John Patterson Executive Director, Development ANNUAL BUSINESS RESULTS REVIEW 2004 AstraZeneca 2004 Annual Re
Slide 18: Lessons learned and priorities
ANNUAL Lessons learned RESULTS 2004 For breakthrough products, must get better at dealing with risk In depth project reviews to ensure risk recognition and management or mitigation Establish earlier, more effective relationships with key regulators Use science to underpin mechanisms Quality outcomes
Slide 19: Development priorities for 2005 and early pipeline
ANNUAL Development priorities for 2005 RESULTS 2004 Increase our Productivity Medium-term NCEs: Cerovive™; Galida™ Long-term Drive meaningful progression of the early portfolio Short-term Key products: Crestor®, Iressa®, Exanta® LCM : Seroquel®, Symbicort®, Nexium® ANNUAL Early Pipeline - progressin
Slide 20: Early stage pipeline and key products
ANNUAL Early Stage Pipeline RESULTS 2004 PC Phase I Phase II Totals 2002 22 9 9 40 2003 26 12 12 50 2004 31 17 17 65 ANNUAL Key products RESULTS 2004 Iressa® post-ISEL results AZ is collecting the full dataset to understand more about which patients benefit most In agreement with Health Authorities,
Slide 21: Key products and 2005/06 news flow
ANNUAL Key products RESULTS 2004 Seroquel® SR formulation Bipolar depression Bipolar maintenance Symbicort® Submit a new Symbicort single Inhaler Therapy package in Europe (13,000 patients) Submit NDA for Asthma pMDI with enhanced chemistry and manufacturing data on the device or a modified device E
Slide 22: Initial assessment
ANNUAL Initial assessment RESULTS 2004 Early pipeline vibrant, increasing R&D productivity ‘Development is where science has to get down to business’ Some exciting key projects, but full portfolio review including in-depth risk evaluation underway Key parts of Development organisation and operating
Slide 23: Agenda and 2004 financial scorecard
ANNUAL Agenda RESULTS 2004 2004 Highlights 2005 guidance and key trends Business priorities for 2005 and beyond ANNUAL 2004 Financial Scorecard RESULTS 2004 Outcome EPS target $2.00 - $2.15 $2.11 +18% Sales – mid-teen growth 14% (9% CER) (incl. currency) AstraZeneca 2004 Annual Results 23
Slide 24: 2004 sales momentum and financial scorecard
2004 Sales: Momentum maintained on ANNUAL growth products RESULTS 2004 At constant exchange rates 60% 50% 50% 40% Growth % 36% 30% 30% 22% 20% 15% 16% 11% 9% 10% 7% 0% -1% -10% Q1 Q2 Q3 Q4 FY Sales Growth Products ANNUAL 2004 Financial Scorecard RESULTS 2004 Outcome EPS target $2.00 - $2.15 $2.11 +1
Slide 25: R&D/SG&A growth and 2004 profit profile
R&D/SG&A: growth contained in the ANNUAL second half RESULTS 2004 16% 14% 14% 13% 12% 10% 8% 8% 7% 6% Growth = CER% 4% 4% 4% 3% 2% Nil -2% -4% -4% -6% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2004 ANNUAL 2004 profit profile RESULTS 2004 At constant exchange rates 45% 39% 40% 35% 30% 25% Growth % 20% 15% 15% 12% 9% 1
Slide 26: Other financial headlines and sales and costs trends
ANNUAL 2004 : Other financial headlines RESULTS 2004 Product provisions Iressa® : $85m inventory + US revenue recognition Exanta® : $151m assets and inventory Inventory management agreement impact on growth Reported Underlying Group +9% +11% US +10% +15% US Nexium +10% +20% Cash flow $500 million +
Slide 27: Transition to IFRS and 2005 outlook
ANNUAL Making the transition to IFRS RESULTS 2004 2004 2005 Guidance UK accounting policies $2.11 $2.40 – 2.55 IFRS $2.01 $2.35 – 2.50 ANNUAL 2005 Outlook - IFRS RESULTS 2004 EPS Target - IFRS $2.35 - $2.50 EPS Growth +17% - 24% Sales Mid single digits (CER) Operating Margin 23-24% Gross Margin + 1-
Slide 28: Productivity improvements across the value chain
Productivity improvements across ANNUAL the value chain RESULTS 2004 $m productivity Gross Margin Research & Development Sales & Marketing Infrastructure Productivity improvements across ANNUAL the value chain RESULTS 2004 Distribution chain from factory to patient Gross Margin Site costs per unit o
Slide 29: Dividend and distribution policy and 2005 priorities
ANNUAL Dividend and distribution policy RESULTS 2004 Maximise cash flow Free cash generation over next 3 years for distribution $3.9 billion generated in 2004 (including divestments) Dividend to grow in line with earnings Balance available for share buy back ANNUAL 2005 Priorities RESULTS 2004 Deliv