AstraZeneca PLC — Earnings Release 2011

Dec 31, 2011

health

AstraZeneca 2011 In Brief

Improving health is one of the toughest challenges facing the world today. As a global biopharmaceutical company, AstraZeneca has a key contribution to make by providing innovative medicines for some of the world's most serious diseases.

connectsusall

We know that if we are to deliver medicines that people really need and value, we cannot do it in isolation. We work closely with all our stakeholders to understand their needs and challenges. We are committed to acting with integrity and high ethical standards in everything we do and our goal is always to improve health for patients and bring benefi t for our stakeholders, our business and society.

Our strategy

Mission

to make the most meaningful difference to health through great medicines that bring benefi t for patients and add value for our stakeholders and society

Strategy

to be a focused, integrated, innovation-driven, global, prescription-based biopharmaceutical business. Our priorities are to drive:

• World class productivity in R&D

• Increased external collaboration

• Our global orientation, refl ecting the growth in Emerging Markets

• Stronger customer orientation, particularly towards payers

• Operational effi ciency with a fl exible cost base

Strategic pillars

Pipeline	Deliver the	Business shape	People
discovery and	business	a reliable supply	a talented and diverse
development	sales and marketing	and manufacturing	workforce with the
of innovative,	activities undertaken	operation, and Lean	right capabilities
differentiated and	in the right way and	organisational	operating in a high
commercially	focused on the needs	infrastructure that	performance culture
attractive medicines	of our customers:	ensure our medicines
	patients, physicians,	are where they need
	and payers	to be when they
		are needed

Responsible business

committed to acting responsibly and to the sustainable development of our business

Values

principles that defi ne who we are and what is important to us as an organisation, that underpin our mission and our strategy, that demonstrate integrity and enhance trust:

• Integrity and high ethical standards

• Respect for the individual and diversity

• Openness, honesty, trust and support for each other

• Leadership by example at all levels

Our year in brief

Distributions to shareholders \$m	2011	2010	2009
Dividends	3,764	3,361	2,977
Share repurchases	6,0151	2,6042	–
Total	9,779	5,965	2,977

Dividend for 2011	\$	Pence	SEK	Payment date
First interim dividend	0.85	51.9	5.33	12 September 2011
Second interim dividend	1.95	123.6	13.21	19 March 2012
Total	2.80	175.5	18.54

1 Share repurchases in 2011, net of proceeds from the issue of share capital equal to \$409 million, were \$5,606 million.

2 Share repurchases in 2010, net of proceeds from the issue of share capital equal to \$494 million, were \$2,110 million.

healthinnovation

Delivering value through innovation

Innovation is at the heart of everything we do at AstraZeneca – from our research of effective new medicines to how we run our business. Our goal is always to improve health for patients and deliver the value that our stakeholders want and the world's healthcare systems need.

• The positive decision in Germany in favour of Brilique, our treatment for acute coronary syndromes, was the fi rst to be made under the new law for the mandatory pricing assessment for newly introduced drugs in their healthcare system.

• A groundbreaking agreement with the UK Medical Research Council (MRC) means a wide range of chemical compounds developed by AstraZeneca is to be made available free of charge to UK medical researchers. Sir John Savill, Chief Executive of the MRC said: "The initiative marks a new era in medical discovery, open innovation and public-private collaboration."

healthinnovation Reducing the number of heart-related deaths

Germany is proud of its healthcare system yet still has high mortality rates for coronary heart disease. 'Herzbewusst' (heart conscious) is a programme designed to help people help themselves in preventing acute coronary syndromes and, for the fi rst time in Germany, has included a variety of stakeholders from the outset.

healthinnovation Expanding access and affordability for our medicines

In Brazil, our 'Faz Bem' (Wellbeing) programme provides discounts to the cost of our medicines. It also provides additional incentives for those who adhere to treatment regimes and so helps improve health outcomes.

AstraZeneca at a glance

We are a global, innovation-driven biopharmaceutical business.

Our primary focus is the discovery, development and commercialisation of prescription medicines for six important areas of healthcare: Cardiovascular, Gastrointestinal, Infection, Neuroscience, Oncology, and Respiratory & Inflammation. We operate in over 100 countries and our innovative medicines are used by millions of patients worldwide.

We want AstraZeneca to be valued as a source of great medicines and trusted as a company that delivers business success responsibly. Our Responsible Business Plan provides the framework for ensuring that we operate with integrity and high ethical standards across all our activities.

Launch of our new Global External Interactions Policy reinforces our highest standards of sales

Around11,300

employees work in our R&D organisation and we have 14 principal R&D centres in 8 countries.

Russia: We invested \$150 million in a manufacturing plant near Moscow and announced plans to establish a new predictive science centre in St Petersburg.

Regional sales Western Europe

\$8,501m (-11%)

Around 57,200

Regional sales

\$13,426m

US

(-2%)

employees worldwide Americas: 17,450 (31%) Europe, Middle East and Africa: 26,600 (46%) Asia-Pacific: 13,150 (23%)

Brilinta/Brilique has been approved in 64 countries; it has been launched in 37 countries

Regional sales Emerging Markets \$5,763m (+10%)

Around 32,300

Sales and Marketing employees: numbers in Established Markets, such as the US, have fallen, whereas the numbers in Emerging Markets are increasing and now represent 47% of the total.

Our top 10 medicines by sales value in 2011 were:

Cardiovascular

Crestor for managing cholesterol levels

Seloken/Toprol-XL

for hypertension, heart failure and angina

Atacand

for hypertension and heart failure

Gastrointestinal Nexium for acid-reflux

Losec/Prilosec

for the treatment of acid related diseases

Infection

Synagis for RSV, a respiratory infection in infants

Neuroscience Seroquel IR

for schizophrenia and bipolar disorder

Seroquel XR

for schizophrenia, bipolar disorder and major depressive disorder

Oncology Zoladex

for prostate and breast cancer

Respiratory & Inflammation Symbicort

for asthma and chronic obstructive pulmonary disease

China: We announced our decision to invest \$200 million in a manufacturing facility in Taizhou, Jiangsu province and our agreement to acquire Guangdong BeiKang Pharmaceutical Company Limited.

employees work at our 23 Supply and Manufacturing sites in 16 countries.

Regional sales Established ROW \$5,901m

(+4%)

Our activities touch many people's lives and we are committed to working in a spirit of collaboration to achieve our goal of better health for patients:

• For patients and physicians, we provide medicines for some of the world's most serious diseases.

• For the people who pay for healthcare, we work to make sure that our medicines offer real value for money.

• For our employees, we provide a culture in which they can feel appreciated, energised and rewarded for their contribution.

• For our shareholders, we aim to deliver value through our continued focus on innovation and running our business efficiently.

• For the wider community, we want to be valued for the contribution our medicines make to society and trusted for the way in which we do business.

We work closely with all our stakeholders to understand their challenges and how we can combine our skills and resources to achieve a common goal: improved health.

Operational overview

79

79 projects in clinical development, including nine in Phase III or under regulatory review; 21 withdrawn during the year

1,150

In line with our commitment to transparency, by the end of 2011 we had published the results of over 1,150 clinical trials on public websites

-2%

Revenue in the US was down 2%

+10%

Emerging Markets revenue increased by 10%

\$1.8bn

Sold Astra Tech, our dental and healthcare products business, for approximately \$1.8 billion in cash

7%

Ranked in the top 7% in the sector in the Dow Jones Sustainability World and European Indexes, with our highest assessment score to date of 85%

Pipeline

• Brilinta approved in the US and Canada; Caprelsa (vandetanib) approved in the US and positive CHMP opinion in the EU; Axanum, Komboglyze™ and Fluenz approved in the EU; Nexium and Faslodex 500mg approved in Japan

• Complete Response Letter received from the US Food and Drug Administration for dapagliflozin in January 2012

• Recorded an impairment charge of \$435 million reflecting the decision not to progress olaparib into Phase III development and Phase III studies for TC-5214 which did not meet their primary endpoints

Deliver the business

• Strong double digit sales growth for Crestor, Seroquel XR and Symbicort

• Revenue performance reflected the loss of nearly \$2 billion of revenue from generic competition, as well as a further \$1 billion lost due to government price interventions

• Seroquel XR patent infringement actions settled against Handa and Accord

• New access to healthcare strategy provided platform for increasing access in a sustainable way

Business shape

• Restructuring programmes since 2007 are delivering planned savings; new initiatives are expected to deliver a further \$1.6 billion in annual benefits by 2014

• Expanded responsible procurement audit programme (727 suppliers in 55 countries in 2011; 42 suppliers in 2010)

People

• Improvement in employee engagement and senior leader communications

• Net reduction of nearly 4,000 employees since 2010 included recruitment of approximately 6,400 employees to replace leavers and drive our expansion in Emerging Markets

Responsible Business

Launched new Responsible Business Plan aligned with business strategy and created Responsible Business Council strengthening governance in this area

• Six of our nine Phase III products are the result of successful partnerships (67%).

• Following the acquisition of Novexel in 2010, we are collaborating with Forest on the co-development and commercialisation of two late stage antibiotic development programmes.

• AstraZeneca is one of four companies to have signed up to partner with TB Alliance and the World Health Organization in a six-way alliance through which the companies will share information about the tuberculosis (TB) compounds in their pipelines to quickly identify and collaborate to develop the most promising TB drug regimen, regardless of sponsor.

healthcollaboration

Finding solutions through collaboration

We believe that only by working together with all our stakeholders can real progress be made in healthcare. Collaboration is a way of life for us.

healthcollaboration Fighting the rise of cardiovascular disease

According to some studies, up to 50% of people in certain Gulf states are affected by high cholesterol. To fi ght this, we have launched a unique educational programme, called 'Safe @ Heart', designed to bring together all stakeholders to improve awareness and reduce cholesterol levels.

healthcollaboration Raising breast cancer awareness and improving treatment

Named after the Zulu word for 'rise' or 'uplifting', our Phakamisa partnership brings together different organisations to help raise breast cancer awareness, increase early diagnosis, and improve access to treatment and effective support networks in communities across South Africa.

healthintegrity

Earning trust through integrity

We want AstraZeneca to be valued as a source of great medicines and trusted as a company that delivers business success responsibly.

• Our core values sit at the heart of our culture: working with integrity and to high ethical standards; showing respect for the individual and diversity; being open and honest in all our interactions; and leading by example at all levels.

• Our Responsible Business Plan provides the framework for applying integrity and high ethical standards across all our activities.

• A member of the Dow Jones Sustainability Index since 2001, we achieved our highest ever assessment score of 85% in the 2011 World Index.

Further information

AstraZeneca 2011 In Brief

This document contains information, including financial information, extracted from the Annual Report and Form 20-F Information 2011 (Annual Report) for AstraZeneca PLC (the Company). The Company and its subsidiaries are variously referred to in this document as 'AstraZeneca', the 'Group', 'we', 'us' and 'our'. This information is provided solely for the convenience of current and future members of the Company and is only intended to introduce the information contained in the Annual Report. Consequently, it should not be read as a substitute for the Annual Report itself. It is not intended to satisfy any statutory and/or regulatory requirements in the UK or elsewhere. Accordingly, it should only be read in conjunction with the Annual Report. The Company, its subsidiaries, Directors and officers shall not be liable for the consequence of any action taken solely in reliance on the information contained in this document.

Website

A copy of the Annual Report is available on our website, astrazeneca.com/annualreport2011. It is also available by request from the Company Secretary.

Statement of dates

Except as otherwise stated, references to days and/or months in this document are references to days and/or months in 2011.

Trade marks

Trade marks of the Group appear throughout this document in italics. AstraZeneca, the AstraZeneca logotype and the AstraZeneca symbol are all trade marks of the Group.

Inclusion of reported performance, core financial measures and constant exchange rate growth rates

The following measures are referred to in this document:

• Reported performance. Reported performance takes into account all the factors (including those which we cannot influence, principally currency exchange rates) that have affected the results of our business as reflected in our Group Financial Statements prepared in accordance with International Financial Reporting Standards as adopted by the EU and as issued by the International Accounting Standards Board.

• Core financial measures. These are non-GAAP measures because unlike Reported performance they cannot be derived directly from the information in the Group's Financial Statements. These measures are adjusted to exclude certain significant items, such as charges and provisions related to our global restructuring programmes, amortisation and impairment of the significant intangibles relating to the acquisition of MedImmune in 2007, the amortisation and impairment of the significant intangibles relating to our current and future exit arrangements with Merck in the US and other specified items.

• Constant exchange rate (CER) growth rates. These are also non-GAAP measures. These measures remove the effects of currency movements (by retranslating the current year's performance at the previous year's exchange rates and adjusting for other exchange effects, including hedging). Throughout this document, growth rates are expressed at CER unless otherwise stated. AstraZeneca's determination of non-GAAP measures together with our presentation of them within our financial information may differ from similarly titled non-GAAP measures of other companies.

Defined terms

Unless otherwise defined in this document, defined terms used in this document shall have the meaning given to them in the Annual Report.

Registered office and corporate headquarters AstraZeneca PLC 2 Kingdom Street London W2 6BD UK

Tel: +44 (0)20 7604 8000 Fax: +44 (0)20 7604 8151

The Annual Report is also available on our website, astrazeneca.com/annualreport2011

Cautionary statement regarding forward-looking statements

shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed. In order, among other things, to utilise the 'safe harbour' provisions of the US Private Securities Litigation Reform Act of 1995 and the UK looking statements with respect to the operations, performance and financial condition of the Group. Forward-looking statements are statements relating to the future which are based on information available at the time such statements are be influenced by factors that could cause actual outcomes and results to be materially different from those expressed date of the preparation of this document and the Company undertakes no obligation to update these forward-looking those factors identified in the Principal risks and uncertainties section from page 130 of the Annual Report. Nothing in