Astrazeneca Plc · LSE:AZN
Astrazeneca — FY2002 Earnings Presentation
23 slides from Astrazeneca's earnings presentation, 2003
Slide 1: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements 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-looking statements with re
Slide 2: Introduction
A Tom McKillop Chief Executive Officer 3 Introduction b Headline results b Product / portfolio highlights b Financial review 4 2002 Annual Results A
Slide 3: Headline results and summary
Headline results 2002 2001 CER $m $m growth Sales* 17,841 16,222 +9% Operating profit 4,356 4,156 +5% EPS (pre-excep) $1.84 $1.73 +7% EPS $1.64 $1.65 Dividends $0.70 $0.70 Share repurchase $1,190m $1,080m *As adjusted for reclassification of cash discounts 5 Summary b 2002 results above expectations
Slide 4: Portfolio transformation
Portfolio transformation Exanta™ Crestor™ 2001 2003 Iressa™ Prilosec® Faslodex™ Zestril® Symbicort® Plendil® Nexium® Nolvadex® Casodex® Arimidex® Zomig® Seroquel® Atacand® 7 Current portfolio 2001 Prilosec® b Drive Zestril® growth Base Mature Nolvadex® products Plendil® b New launches Growers 8 2002
Slide 5: Drive the growth products: Seroquel
Drive the growth products 3500 3000 2500 Arimidex® 2000 Zomig® $m Atacand® 1500 Casodex® Seroquel® 1000 500 0 1999 2000 2001 2002 9 Seroquel® AstraZeneca’s Newest Megabrand 2002 sales $1.15bn 10 2002 Annual Results A
Slide 6: Seroquel market share by region
Seroquel® cash market share by region 25 20 15 % $ Share 10 5 0 AT /97 AT 97 AT /98 AT /98 AT /98 AT /98 AT 99 AT /99 AT 99 AT /99 AT /00 AT 00 AT /00 AT 00 AT /01 AT /01 AT 01 AT /01 AT /02 AT /02 02 4/ 1/ 3/ 2/ 4/ 3/ 3/ 3 1 2 3 4 2 4 1 3 1 2 4 1 2 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q AT M M M
Slide 7: Arimidex performance
Arimidex® performance 300 Arimidex® 250 200 Sales $m 150 Femara® 100 Aromasin® 50 Afema® 0 Lentaron® Q4/98 Q1/99 Q4/99 Q1/00 Q4/00 Q1/01 Q2/01 Q3/98 Q2/99 Q3/99 Q2/00 Q3/00 Q3/01 Q4/01 Q3/02 Q1/02 Q2/02 Source: IMS Health, IMS MIDAS 32 countries Rolling MAT's 13 Drive the growth products 3500 3000 2
Slide 8: New launches and Nexium growth prospects
New launches 2500 2000 Faslodex® 1500 Iressa® $m Symbicort® Nexium® 1000 500 0 2001 2002 15 Nexium® growth prospects b 2002 sales nearly $2bn 16 2002 Annual Results A
Slide 9: Nexium US TRx market share
Nexium® US TRx market share (PPI) 60% Total Prescription Market Share (PPI) 50% 40% 30% 20% 10% 0% 00 01 02 00 01 02 0 1 2 0 00 1 01 2 02 0 1 2 -0 -0 -0 l-0 l-0 l-0 -0 -0 -0 v- v- v- n- n- n- p- p- p- ar ar ar ay ay ay Ju Ju Ju No No No Ja Ja Ja Se Se Se M M M M M M Prilosec® Nexuim® Prevacid® omepr
Slide 10: PPI absolute US$ growth second to none
PPI absolute US$ growth “second to none” A2B2 ACID PUMP INHIBITORS +20% C10A1 HMG-COA REDUCTASE INHIB +15% N5A1 ATYPICAL ANTIPSYCHOTICS +27% B3C ERYTHROPOIETIN PRODUCTS +24% N6A ANTIDEPRESSANTS +10% N3A ANTI-EPILEPTICS +22% USD Growth R6A ANTIHISTAMINES SYSTEMIC +15% MAT Q3 2002 vs 2001 M1A3 COXIBS
Slide 11: US PPI market GE TRx share
US PPI market – GE TRx share 50.00% 45.00% 40.00% 35.00% GEs TRx Share 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 1 2 1 2 0 1 2 1 2 00 01 02 01 02 -0 -0 -0 -0 -0 -0 -0 l-0 l-0 p- n- p- n- p- ar ar ay ay ov ov ov Ju Ju Ja Ja Se Se Se M M M M N N N Prilosec® Nexium® Prevacid® omeprazole Aciphex® P
Slide 12: Symbicort and Iressa
Symbicort® $m 120 b COPD indication 100 pending in EU 80 b Single Therapy 60 submission 40 planned Q3 2003 20 b Phase III studies 0 Q1 01 Q2 01 Q3 01 Q4 01 Q1 02 Q2 02 Q3 02 Q4 02 underway in US 23 Iressa® b Recognition of therapeutic potential b Rapid uptake since launch in Japan b Reports of ILD –
Slide 13: Iressa
Iressa® $m 2002 sales $67m 18 16 14 12 10 8 6 4 2 0 July Aug Sept Oct Nov Dec 25 Iressa® b US – FDA discussions ongoing – PDUFA date now 5 May 2003 b Europe – NSCLC monotherapy submission planned Q1 2003 26 2002 Annual Results A
Slide 14: Faslodex and portfolio transformation
Faslodex® $m 18 b US sales $35m in 16 14 8 months EU submission 2nd 12 10 b 8 line advanced 6 breast cancer 4 planned Q1 2003 2 0 Q2 02 Q3 02 Q4 02 27 Portfolio transformation 6000 5000 Faslodex® 4000 Iressa® Symbicort® Nexium® 3000 Arimidex® Zomig® Atacand® 2000 Casodex® Seroquel® 1000 0 1999 2000
Slide 15: Portfolio transformation
Portfolio transformation 6000 b Absorb generic erosion 5000 b Fund the launches 4000 b 2003 EPS range 3000 $1.50 - $1.65 2000 1000 0 2002 29 Portfolio transformation Exanta™ b Absorb generic erosion Crestor™ Iressa™ b Fund the launch programme Faslodex™ b 2003 EPS range Symbicort® $1.50 - $1.65 Nexi
Slide 16: Headline results
A Jon Symonds Chief Financial Officer 31 Headline results 2002 2001 CER $m $m growth Sales* 17,841 16,222 +9% Operating profit 4,356 4,156 +5% EPS (pre-excep) $1.84 $1.73 +7% EPS $1.64 $1.65 Dividends $0.70 $0.70 Share repurchase $1,190m $1,080m *As adjusted for reclassification of cash discounts 32
Slide 17: Quarterly sales growth
Quarterly sales growth 30 30% 25 24% 23% 20% 20 19% Total % 15 13% Ex-Losec®/Prilosec® 10% 10 9% 8% 6% 5 0 FY02 Q1 Q2 Q3 Q4 33 Quarterly sales growth - US 55 45 35 % 25 Total Ex-Prilosec® 15 10% 5 FY02 Q1 Q2 Q3 Q4 -5 34 2002 Annual Results A
Slide 18: Prilosec US
Prilosec® b No impact of generics in 2002 b Sales decline in line with prescriptions b Wholesaler inventory <1 months supply b Recent prescription trends 35 US Prilosec® latest weekly TRx % Brand share of molecule 100 90 80 70 60 50 40 30 20 10 0 Week Week Week Week Week Week Week Week Week Week Wee
Slide 19: Cash discounts and profit growth rates
Cash discounts Q4 FY 2002 2002 Sales Before cash discounts 4,975 18,128 Cash Discounts ($m) 74 287 After cash discounts 4,901 17,841 Operating Margin Before cash discounts 21.6% 24.0% Cash Discounts ($m) 0.3% 0.4% After cash discounts 21.9% 24.4% 37 Profit growth rates 25 20 15 10 % 5 0 Q1 Q2 Q3 Q4
Slide 20: R&D / SG&A progression and FY2002 operating margins
R&D / SG&A progression 18 17 16 15 14 13 12 11 11 % Growth 10 10 8 7 6 4 4 2 0 Q1 Q2 Q3 Q4 Reported CER 39 FY 2002 operating margins FY01 FY02 Movement* Margin 25.6 24.4 -1.2 Other income 2.3 1.4 -0.9 COGS 25.9 25.3 +0.5 R&D 16.6 17.2 -0.6 -0.3 currency SG&A 33.5 33.6 -0.2 *includes roundings 40 200
Slide 21: Currency impact 2002 and other financial items
Currency impact 2002 Rates movement by Quarter versus prior year 20% % Movement (Strong Dollar=-ve) 15% 10% 5% 0% Q1 Q2 Q3 Q4 -5% -10% -15% GBP SEK JPY EUR 41 Other financial items b Taxation – Held at 26.8% for 2002 – Not expected to go below 27% b Cash flow 42 2002 Annual Results A
Slide 22: Cash flow and other financial items
Cash flow 6 5.7 5 4.1 4 3 2002 2001 2 1 0.9 0 Operating cash flow Tax Capex Dividend+share buyback Net cash flow -1 (0.9) 43 Other financial items b Taxation – Held at 26.8% for 2002 – Not expected to go below 27% b Cash flow b Dividends / share buy-back – Dividend policy reconfirmed – Remaining sha
Slide 23: Outlook
Outlook b Sales: low single digit decline (CER) – Momentum from growth products – Prilosec® – Currency effect positive b Margins lower overall – Investments in R&D and SG&A – Gross margin improvement – Currency impact negative b EPS range of $1.50 - $1.65 in 2003 b Strong sales and earnings growth f