AstraZeneca Proforma

Astra AB Zeneca Group PLC Not for Release, Publication or Distribution, in whole or in part, in or into Canada, Australia or Japan AstraZeneca Pro Forma Combined 1998 Results The Boards of Astra AB and Zeneca Group PLC announced in December 1998 that they had agreed the terms of an all share merger of equals to form AstraZeneca PLC. The merger proposals will be put to an Extraordinary General Meeting of Zeneca Shareholders tomorrow, 18 February, and the share exchange offer is open to Astra Shareholders for an initial acceptance period ending 18 March. The unaudited pro forma combined results of AstraZeneca for the year ended 31 December 1998 are as follows: FINANCIAL HIGHLIGHTS Constant 1998 1997 Report Currency 1998 1997 1998 1997 $m* $m* ed % £m* £m* SEKm* SEKm* % Group Sales 17,234 15,831 + 9 +13 10,382 9,537 136,269118,189 Operating Profit before 3,513 3,504 - + 10 2,116 2,111 27,774 26,161 Exceptional Items Profit before Tax 3,458 3,440 + 1 + 10 2,083 2,072 27,340 25,678 & Exceptional Items Earnings per Share $1.36 $1.37 - + 9 82.0p 82.3p 10.76SE10.20SE (before K K Exceptional Items) Earnings per $1.39 $1.37 + 2 n/a 84.0p 82.3p 11.03SE10.20SE Share (FRS3) K K Return on 20.4% 22.1% Sales * See the following page for details of the exchange rates used. On a pro forma basis: Pharmaceuticals sales increased by 15 per cent, at constant currency, to $12,754 million (£7,683 million, SEK 100,843 million) US Pharmaceuticals sales were up 27 per cent Pharmaceuticals operating profit before Exceptional Items increased by 9 per cent, at constant currency; return on sales was 23.9 per cent (1997: 26.3 per cent) Pharmaceuticals Research & Development expenditure increased by 12 per cent to $2,183 million (£1,315 million, SEK 17,260 million) representing a 17.1 per cent expenditure to sales ratio At 31 December 1998 the combined group would have had an ungeared balance sheet and net cash funds of $533 million (£321 million, SEK 4,333 million) after providing for payment of $1.69 billion payable to Merck & Co., Inc. on consummation of the Merger, but before transaction costs arising from the Merger ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/02/17/19990217BIT00030/bit0001.doc http://www.bit.se/bitonline/1999/02/17/19990217BIT00030/bit0002.pdf