3rd Quarter Results

5 November 2015

Year-To-Date and Q3 2015 Results

Financial Summary

• Core EPS in the year to date up by 2% with Q3 Core EPS growth of 8% 
• Total Revenue stable in the year to date; Core Gross margin up by 1.0% points to 83.3%
• Resilient top-line performance underpinned continued investment in R&D. Core R&D costs up by 18% in Q3,  reflecting the recent start of key Oncology trials
  • Core SG&A costs declined by 3% in the third quarter; increased by 2% in the year to date
  • Upgraded FY 2015 Total Revenue and Core EPS guidance at constant exchange rates

YTD Commercial Highlights
Growth platforms grew by 10%, representing 57% of Total Revenue:
1.   Respiratory: +8%, including 38% Q3 sales growth in Emerging Markets
2.   Brilinta/Brilique: +44%; Q3 US growth of 73%
3.   Diabetes: +26%, including 73% sales growth in Emerging Markets
4.   Emerging Markets: +12%. China sales growth of 17% (Q3 2015: +11%)
5.   Japan: +3%, with Q3 sales growth of 6%

Achieving Scientific Leadership: Progress since the prior results announcement

Pascal Soriot, Chief Executive Officer, commenting on the results said:

"I'm pleased with our continued progress as we focus on executing our plans across our growth platforms and pipeline. While we have more work to do on the submission of saxagliptin/dapagliflozin combination in Diabetes, the significant label update for Brilinta was accompanied by submission acceptances and accelerated reviews in cancer, respiratory diseases and lupus. In particular, our exciting Oncology portfolio maintained its momentum with four Priority Review and Fast Track designations as well as supportive data at key congresses.

Our financial performance in the year to date, including an 8% increase in Core EPS in the third quarter, underpinned today's upgrade to full-year guidance. 2016 will be a pivotal year in our strategic journey as we face the impact of loss of exclusivity to Crestor in the US. Looking ahead however, the continued performance of our growth platforms and upcoming launches will combine with our increasing focus on costs and cash generation to help offset short-term headwinds and return AstraZeneca to sustainable growth."

FY 2015 Guidance

All guidance is shown at CER1.

Non-guidance information is also provided:
Based on average daily spot rates in the nine months to the end of September 2015, Total Revenue in FY 2015 is expected to decline by high single-digit percent, with Core EPS expected to be broadly in line with FY 2014. In addition, the majority of FY 2015 Externalisation Revenue is anticipated to have been realised in the first half of the year. Core R&D costs are expected to grow at a lower rate in the final quarter versus the year to date and the Company is committed to reducing Core SG&A costs in FY 2015 versus the prior year, both in terms of absolute value and relative to Total Revenue.

Pipeline: Forthcoming Major Newsflow

Notes
1.   All growth rates and guidance are shown at constant exchange rates (CER) unless specified otherwise.
2.   Total Revenue defined as Product Sales and Externalisation Revenue. For further details on the presentation of Total Revenue, see the announcement published by the Company in March 2015.
3.   See the Operating and Financial Review for a definition of Core financial measures and a reconciliation of Core to Reported financial measures.
4.   The performance shown in this announcement covers the nine and three month periods to 30 September 2015 (the year to date and the quarter respectively) compared to the nine and three month periods to 30 September 2014 (the prior year to date and the prior quarter respectively).

Results Presentation
A conference call for investors and analysts, hosted by management, will begin at midday GMT today. Details can be accessed via www.astrazeneca.com/investors.

Reporting Calendar
The Company intends to publish its full-year financial results on 4 February 2016.

About AstraZeneca
AstraZeneca is a global, innovation-driven biopharmaceutical business that focuses on the discovery, development and commercialisation of prescription medicines, primarily for the treatment of cardiovascular, metabolic, respiratory, inflammation, autoimmune, oncology, infection and neuroscience diseases. AstraZeneca operates in over 100 countries and its innovative medicines are used by millions of patients worldwide.

Contacts at AstraZeneca

Key: RIA - Respiratory, Inflammation & Autoimmunity, CVMD - Cardiovascular & Metabolic Disease,
ING - Infection, Neuroscience & Gastrointestinal

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