AstraZeneca 2012
In Brief

Delivering value through innovation

AstraZeneca

Innovation is at the core of everything we do at AstraZeneca – from our research into effective new medicines to how we run our business.

Our goal is to improve health for patients, bring benefits for stakeholders and deliver long-term shareholder value through continued successful innovation.

Our innovation:

> Improves health outcomes for patients
> Delivers economic benefits for healthcare systems
> Adds value beyond the medicines
> Contributes to our local communities

In a world where the demand for healthcare continues to grow, the advances made through innovation are vital to address unmet medical need and deliver sustained improvement in healthcare worldwide.

Distributions to shareholders ⋅$m

	2012	2011	2010
Dividends	3,665	3,764	3,361
Share repurchases¹	2,635²	6,016²	2,604²
Total	6,300	9,779	5,965

Dividend for 2012

	$	Pence	SEK	Payment date
First interim dividend	0.90	58.1	6.26	10 September 2012
Second interim dividend	1.90	120.5	12.08	18 March 2013
Total	2.80	178.6	18.34

¹ The share repurchase programme was suspended effective 1 October 2012.
² Share repurchases in 2012, net of proceeds from the issue of share capital equal to $429 million, were $2,206 million.
³ Share repurchases in 2011, net of proceeds from the issue of share capital equal to $409 million, were $5,606 million.
⁴ Share repurchases in 2010, net of proceeds from the issue of share capital equal to $494 million, were $2,110 million.

Financial overview
Sales
$m (-15%)		Net cash flow from operating activities $m
12	27,973	12	6,948
11	33,591	11	7,821
10	33,269	10	10,680
Reported pre-R&D operating profit $m (-25%)		Core pre-R&D operating profit $m (-16%)
12	13,391	12	14,882
11	18,318	11	18,200
10	16,812	10	17,822
Reported operating profit $m (-34%)		Core operating profit $m (-18%)
12	8,148	12	10,430
11	12,795	11	13,167
10	11,494	10	13,603
Reported earnings per Ordinary Share $ (-29%)		Core earnings per Ordinary Share $ (-9%)
12	4.99	12	6.41
11	7.33	11	7.28
10	5.60	10	6.71

AstraZeneca 2012 In Brief 1

Operational overview

Pipeline

84 pipeline projects

84 pipeline projects including 71 in clinical development, of which 11 are in Phase III or under regulatory review; 19 withdrawn during the year

Believe in the business

15% reduction in revenue

Revenue fell by 21% in the US; 19% in Western Europe; and 14% in Established Rest of World. Revenue rose by 4% in Emerging Markets

15% reduction in revenue

12% reduction in SG&A

11% reduction in R&D expense

88 countries

Brillinta/Brilique has been approved in 88 countries, launched in 82 countries and remains under review in 23 countries. Global sales of $89 million in 2012

11% reduction in R&D expense

84.5bn loss of exclusivity reduction

Some $4.5 billion of revenue decline was related to loss of exclusivity on several brands in the portfolio. Seroquel IR declined by more than $3 billion; regional losses of exclusivity for Atacand, Nexium and Crestor had a further negative impact of more than $1 billion

12% reduction in SG&A

11% reduction in R&D expense

$600m revenue growth

8600 million of revenue growth

81% score

81%

Our employee engagement score in our annual FOCUS survey among all employees decreased by three percentage points compared with 2011

Business shape

$1.85bn in benefits

By the end of 2012, annual benefits of $1.85 billion had been realised from the phases of our restructuring programme announced in 2010 and 2012

12% reduction in SG&A

2 AstraZeneca 2012 In Brief

Innovation means

better health outcomes for patients

Our innovative medicines are playing a part in increasing survival rates and improving quality of life for patients in important areas of medical need.

For example, Brilinta/Brilique, our treatment for acute coronary syndromes, shows a 21% relative reduction in cardiovascular mortality against the current standard of care over a 12 month duration of therapy.

In the UK, the government has announced it is to extend the influenza vaccination programme to all children, recommending use of our nasal spray vaccine, Fluenz. Even with moderate vaccination uptake, the UK alone could see around a 40% drop in the number of people affected. That would mean at least 11,000 fewer hospitalisations as a result of influenza and around 2,000 fewer deaths a year.

AstraZeneca 2012 In Brief 3

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 are one of only a handful of companies to span the entire life-cycle of a medicine from discovery, early and late-stage development, to the global commercialisation of primary care, specialty care-led and specialty care medicines. Using these skills and capabilities we can make a real difference to the health of a broad range of patients by delivering great medicines in disease areas where there is unmet medical need.

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.

$10,655m

Regional sales US (-21%)

14,400*

employees in the Americas (27.9%)

30,200*

Sales and Marketing employees: numbers in Established Markets, such as the US, have fallen, whereas the numbers in Emerging Markets have increased and now represent 53% of the total

51,700*

employees worldwide

4 AstraZeneca 2012 In Brief

$6,486m

Regional sales Western Europe (-19%)

10,300*

employees work at our 22 Supply and Manufacturing sites in 16 countries

23,600*

employees in EMEA (45.6%)

$5,080m

Regional sales Established ROW (-14%)

13,700*

employees in Asia-Pacific (26.5%)

$5,752m

Regional sales Emerging Markets (+4%)

9,800*

employees work in our R&D organisation and we have 10 principal R&D centres in six countries

All figures are approximate.

AstraZeneca 2012 In Brief 5

Our medicines

Our 10 leading medicines by sales value are:

Cardiovascular Atacand for hypertension and heart failure 2010: $1,483m 2011: $1,450m	Crestor for managing cholesterol levels 2010: $5,691m 2011: $6,622m	Seloken/Toprol-XL for hypertension, heart failure and angina 2010: $1,210m 2011: $986m
2012 $1,009m (-27%)	2012 $6,253m (-4%)	2012 $918m (-4%)
Gastrointestinal Nexium for acid-reflux 2010: $4,969m 2011: $4,429m	Infection Synagis for RSV, a respiratory infection in infants 2010: $1,038m 2011: $975m
2012 $3,944m (-10%)	2012 $1,038m (+6%)
Neuroscience Seroquel IR for schizophrenia and bipolar disorder 2010: $4,148m 2011: $4,338m	Seroquel XR for schizophrenia, bipolar disorder and major depressive disorder 2010: $1,154m 2011: $1,490m	Oncology Zoladex for prostate and breast cancer 2010: $1,115m 2011: $1,179m
2012 $1,294m (-70%)	2012 $1,509m (+4%)	2012 $1,093m (-5%)
Respiratory & Inflammation Pulmicort for asthma and chronic obstructive pulmonary disease 2010: $872m 2011: $892m	Symbicort for asthma and chronic obstructive pulmonary disease 2010: $2,746m 2011: $3,148m
2012 $866m (-1%)	2012 $3,194m (+5%)

6 AstraZeneca 2012 In Brief

Innovation means benefits for healthcare systems

Healthcare systems around the world are under pressure, working with limited resources to meet the growing demand for healthcare.

Innovative medicines offer benefits that go beyond improving patient outcomes, helping to deliver economic efficiencies and supporting more effective allocation of scarce resources. For example, the introduction of antacid H₂-receptors followed by proton-pump inhibitors had an almost overnight impact on the cost of surgery by eliminating the need for many gastric operations and follow-up post-operative care. The redundancy of surgical intervention freed up resources to be invested more efficiently elsewhere. The decrease in costs associated with hospital care for cardiovascular diseases is estimated to be almost four times larger than the increase in costs of cardiovascular medicines that deliver improved patient outcomes and overall efficiencies for healthcare systems.

AstraZeneca 2012 In Brief 7

Our year in brief

| February > AstraZeneca announces an accelerated R&D transformation programme and the end of R&D activity at sites in Sweden (Södertälje) and Canada (Montreal) | March > AstraZeneca and Targacept decide not to pursue regulatory filing on TC-5214 due to inconclusive Phase III results

As anticipated, the Seroquel IR patent in the US expired, a number of generic products entered the market and our sales declined | April > Entered into agreement to acquire Ardea and its Phase III development product candidate, lesinurad, as a potential treatment for the chronic management of hyperuricaemia in patients with gout | June > David Brennan retires as CEO

Louis Schweitzer retires as Chairman of the Board and Leif Johansson starts as the new Chairman |
| --- | --- | --- | --- |

2012 F M A M J J

| March > AstraZeneca receives approval from the FDA for FluMist

Quadrivalent for the prevention of influenza. This marked the first four-strain influenza vaccine, and the only intra-nasal four-strain vaccine, approved by the FDA	April > AstraZeneca agrees with Amgen to jointly develop and commercialise five monoclonal antibodies from Amgen's clinical inflammation portfolio	June > AstraZeneca enhances its presence in Asia with the opening of the Zhangjiang Park Regional Hub Headquarters in Shanghai

8 AstraZeneca 2012 In Brief



August > Expansion of BMS diabetes alliance through inclusion of the Amylin product portfolio	October > Pascal Soriot starts as CEO > Suspension of share repurchase programme	November > Forxiga approved in Europe for the treatment of Type 2 diabetes
> EU gives marketing authorisation for Zinforo

AstraZeneca 2012 In Brief 9

Pharmaceutical sales and growth

Estimated pharmaceutical sales – 2016*

| North America
$371.8bn | Latin America
$117bn | Europe
(Non EU countries)
$21.8bn |
| --- | --- | --- |
| Europe
(EU countries)
$211.5bn | CIS
$35.5bn | Middle East
$18bn |
| South East
& East Asia
$194.1bn | Africa
$30.6bn | Oceania
$16.9bn |
| Japan
$127.4bn | Indian Subcontinent
$29.7bn | |

Ex-manufacturer prices at CER.

Source: IMS Health.

Estimated pharmaceutical market growth 2011 to 2016*

10 AstraZeneca 2012 In Brief

Innovation means benefits beyond medical advances

Our innovation takes many forms which offer significant benefits by adding value beyond the medicines themselves.

For example, we are exploring new ways of increasing access to healthcare which take account of the different barriers to healthcare around the world and which are tailored locally to different patient needs. Our broad market strategy in China means we are expanding the affordability of our medicines to reach an increasing number of physicians and hospitals in communities outside of the most affluent cities, which do not currently have regular access to healthcare and high quality medicines.

AstraZeneca 2012 In Brief 11

Further information

AstraZeneca 2012 In Brief

This document contains information, including financial information, extracted from the Annual Report and Form 20-F Information 2012 (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/annualreport2012. 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 2012.

Trade marks

Trade marks of, or licensed to, 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 Standard 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.

12 AstraZeneca 2012 In Brief

Innovation means benefits for the communities in which we work.

Our presence contributes to the economic development of the communities in which we work, building skills in these communities through local employment, contributions through wages and taxes, as well as capacity building through local procurement and collaborations with local partners.

For example, in Russia we were the first pharmaceuticals multinational to announce an investment in full-cycle manufacturing. The factory, currently being built and due to open in the Kaluga region in 2014, will manufacture a range of AstraZeneca's medicines. We are also committed to sharing our global R&D expertise with the Russian scientific community through research collaborations, support programmes and clinical trials. In support of this commitment, we opened our first Predictive Science Centre in Russia in St. Petersburg in 2012.

AstraZeneca 2012 In Brief 13

AstraZeneca PLC
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Cautionary statement regarding forward-looking statements

The purpose of this document is to provide information to the members of the Company. The Company and its Directors, employees, agents and advisers do not accept or assume responsibility to any other person to whom this document is 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 Companies Act 2006, we are providing the following cautionary statement. This document contains certain forward-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 made, including information relating to risks and uncertainties. Although we believe that the forward-looking statements in this document are based on reasonable assumptions, the matters discussed in the forward-looking statements may be influenced by factors that could cause actual outcomes and results to be materially different from those expressed or implied by these statements. The forward-looking statements reflect knowledge and information available at the date of the preparation of this document and the Company undertakes no obligation to update these forward-looking statements. We identify the forward-looking statements by using the words 'anticipates', 'balieves', 'expects', 'intends' and similar expressions in such statements. Important factors that could cause actual results to differ materially from those contained in forward-looking statements, certain of which are beyond our control, include, among other things, those factors identified in the Principal risks and uncertainties section from page 75 of the Annual Report. Nothing in this document or the Annual Report should be construed as a profit forecast.

AstraZeneca
Health Connects Us All

The Annual Report is also available on our website, astrazeneca.com/annuaireport2012

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AstraZeneca PLC Investor Presentation 2013

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Delivering value through innovation

Operational overview