3rd Quarter & 9 Months Results - Part 2
ASTRAZENECA PLC
28 October 1999
Part 2
Consolidated Profit & Loss Account For Continuing Operations Before
Exceptional Items
3rd 3rd Nine Nine
Quarter Quarter Months Months
1999 1998 1999 1998
USDm USDm USDm USDm
------------------------------------ ----- ----- ----- -----
Sales 4,279 3,503 13,322 9,884
Cost of sales (1,437) (1,069) (4,205) (2,930)
Distribution costs (77) (75) (244) (233)
Research and development (664) (569) (1,976) (1,682)
Selling, general and administrative
expenses (1,193) (1,168) (3,971) (3,047)
Other income 41 24 126 112
------------------------------------ ----- ----- ----- -----
Group operating profit 949 646 3,052 2,104
Share of joint ventures' and
associates' operating profits (17) (5) 5 554
Net interest 9 3 (24) 41
------------------------------------ ----- ----- ----- -----
Profit on ordinary activities before
taxation 941 644 3,033 2,699
Taxation (282) (184) (906) (820)
------------------------------------ ----- ----- ----- -----
Profit on ordinary activities after
taxation 659 460 2,127 1,879
Attributable to minorities (2) (2) (4) 1
------------------------------------ ----- ----- ----- -----
Net profit for the period 657 458 2,123 1,880
------------------------------------ ----- ----- ----- -----
Earnings per Ordinary Share USD0.37 USD0.26 USD1.20 USD1.06
Diluted earnings per Ordinary Share USD0.37 USD0.26 USD1.20 USD1.06
------------------------------------ ----- ----- ----- -----
Weighted average number of Ordinary
Shares in issue (millions) 1,776 1,779 1,776 1,778
------------------------------------ ----- ----- ----- -----
Diluted average number of Ordinary
Shares in issue (millions) 1,780 1,783 1,780 1,782
------------------------------------ ----- ----- ----- -----
Consolidated Profit and Loss Accounts, including discontinued operations and
exceptional items, for the nine months ended September 1999 and 1998 are
provided on pages 17 and 19, respectively.
Consolidated Balance Sheet
30 September 31 December
1999 1998
USDm USDm
------------------------------------ ----- -----
Fixed assets
Tangible fixed assets 5,994 6,281
Goodwill and intangible assets 3,897 2,440
Fixed asset investments 226 353
------------------------------------ ----- -----
10,117 9,074
------------------------------------ ----- -----
Current assets
Stocks 1,993 2,029
Debtors 4,675 3,963
Cash and short-term investments 3,791 3,412
------------------------------------ ----- -----
10,459 9,404
------------------------------------ ----- -----
Total assets 20,576 18,478
------------------------------------ ----- -----
Creditors due within one year
Short-term borrowings and current
instalments of loans (382) (377)
Other creditors (5,869) (5,273)
------------------------------------ ----- -----
(6,251) (5,650)
------------------------------------ ----- -----
Net current assets 4,208 3,754
------------------------------------ ----- -----
Total assets less current
liabilities 14,325 12,828
------------------------------------ ----- -----
Creditors due after more than one
year
Loans (741) (761)
Other creditors (541) (40)
Provisions for liabilities and
charges (1,094) (1,045)
------------------------------------ ----- -----
(2,376) (1,846)
------------------------------------ ----- -----
Net assets 11,949 10,982
------------------------------------ ----- -----
Capital and reserves
Shareholders' funds - equity
interests 11,889 10,929
Minority equity interests 60 53
------------------------------------ ----- -----
Shareholders' funds and minority
interests 11,949 10,982
------------------------------------ ----- -----
Consolidated Cash Flow Statement
3rd 3rd Nine Nine
Quarter Quarter Months Months
1999 1998 1999 1998
USDm USDm USDm USDm
------------------------------------ ----- ----- ----- -----
Cash flow from operating activities
Operating profit before exceptional
items 945 674 3,119 2,210
Depreciation 174 183 552 494
Amortisation 87 33 229 90
Decrease/(increase) in working
capital 278 606 (575) (156)
Other non-cash movements (222) (89) (86) (139)
------------------------------------ ----- ----- ----- -----
Net cash inflow from operating
activities before exceptional items 1,262 1,407 3,239 2,499
Outflow related to exceptional items (114) (27) (1,111) (68)
------------------------------------ ----- ----- ----- -----
Net cash inflow from operating
activities 1,148 1,380 2,128 2,431
------------------------------------ ----- ----- ----- -----
Dividends received from joint
ventures and associates - - 3 262
------------------------------------ ----- ----- ----- -----
Returns on investments and servicing
of finance 21 25 (28) 81
------------------------------------ ----- ----- ----- -----
Tax paid (135) (240) (685) (520)
------------------------------------ ----- ----- ----- -----
Capital expenditure and financial
investment
Net cash expenditure on fixed assets (333) (291) (2,163) (1,004)
New fixed asset investments (6) - (6) (18)
------------------------------------ ----- ----- ----- -----
(339) (291) (2,169) (1,022)
------------------------------------ ----- ----- ----- -----
Acquisitions and disposals 2 (1,638) 1,947 (2,038)
------------------------------------ ----- ----- ----- -----
Equity dividends paid to
Shareholders - - (800) (772)
------------------------------------ ----- ----- ----- -----
Net cash inflow/(outflow) before
management of liquid resources and
financing 697 (764) 396 (1,578)
------------------------------------ ----- ----- ----- -----
Issues of shares 5 4 19 10
Cash included in acquisitions and
disposals - 392 12 392
Exchange movements 130 44 (15) 8
------------------------------------ ----- ----- ----- -----
Increase/(decrease) in net cash
funds in the period 832 (324) 412 (1,168)
Net cash funds at beginning of
period 1,834 2,027 2,254 2,871
------------------------------------ ----- ----- ----- -----
Net cash funds at end of period 2,666 1,703 2,666 1,703
------------------------------------ ----- ----- ----- -----
Notes to the Interim Financial Statements
1 BASIS OF PREPARATION AND ACCOUNTING POLICIES
The interim financial statements have been prepared using the merger
method of accounting in relation to the merger of Zeneca Group PLC and
Astra AB which became effective on 5 April 1999. Under merger
accounting, the results and cash flows of Zeneca Group PLC and Astra AB
are combined from the beginning of the financial period in which the
merger occurred and their assets and liabilities combined at the amounts
at which they were previously recorded after adjusting to achieve
consistency of accounting policies. Profit and loss account, balance
sheet and cash flow comparatives are restated on the combined basis.
Following completion of the merger, AstraZeneca has elected to report
its results in US dollars. Translations of key information into
sterling and Swedish Kronor are provided on page 20. AstraZeneca
PLC's share capital has been redenominated from sterling into US
dollars.
The unaudited results for the nine months ended 30 September 1999 have
been prepared in accordance with UK generally accepted accounting
principles. The accounting policies applied are those set out in
AstraZeneca PLC's (formerly Zeneca Group PLC) 1998 Annual Report and
Form 20-F, except that during the current period AstraZeneca adopted
Financial Reporting Standard No. 12 'Provisions, Contingent Liabilities
and Contingent Assets' (FRS 12). The adoption of FRS 12 had no impact
on the Group's net assets at 1 January 1999.
These unaudited statements do not comprise the statutory accounts of the
group. Statutory accounts for Zeneca Group PLC for the year ended 31
December 1998 have been filed with the Registrar of Companies. The
auditors' report on those accounts was unqualified and did not contain
any statement under Section 237 of the Companies Act 1985.
2 BASIS OF PRO FORMA FIGURES
In addition to presenting the comparative information on a combined
basis, year to date pro forma profit and loss and pro forma sales
information have been provided. The unaudited pro forma profit and loss
figures for 1998 and 1999 include two further adjustments to the
statutory figures to illustrate the effect on the sales and profits as
if the Astra Merck Restructuring and the merger related payments to
Merck had occurred at the beginning of 1998 (rather than July 1998 and
April 1999 respectively).
The pro forma figures incorporate sales of USD1,715m for 1998 related to
the Astra Merck joint venture which are excluded from the statutory
consolidation. Changes in the cost base which arise from the Astra
Merck restructuring have also been back dated to 1 January 1998. The
net effect of these pro forma adjustments is to reduce first nine months
1998 reported profits by USD55m, before tax relief of USD23m.
A pro forma amortisation cost of USD12m and notional interest cost of
USD21m per quarter on the payments due to Merck on completion of the
Merger have also been provided for the period 1 January 1998 to 5 April
1999. These charges are offset by tax relief of USD6m per quarter.
Further details on the basis of the pro forma adjustments are included
in the Merger Document and AstraZeneca's Circular to Shareholders
relating to the Merger, both dated 21 January 1999, and in
AstraZeneca's Registration Statement on Form F-4 filed with the US
Securities and Exchange Commission.
3 JOINT VENTURES AND ASSOCIATES
The group's share of joint ventures' sales for the nine months to 30
September 1999 amounted to USD197m and USD1,916m for the comparative
period. Share of joint ventures' and associates' operating profits for
the nine months to 30 September 1999 amounted to USD5m and USD1m
respectively, and for the comparative period USD555m and USD1m,
respectively. Prior to 1 July 1998, the operations of Astra Merck,
Inc. were accounted for as a joint venture.
4 EXCEPTIONAL ITEMS
3rd 3rd Nine Nine
Quarter Quarter Months Months
Exceptional items included in the 1999 1998 1999 1998
profit and loss account USDm USDm USDm USDm
------------------------------------ ----- ----- ----- -----
Integration and synergy costs (202) - (332) -
Astra Pharmaceuticals L.P.
restructuring costs (12) (9) (24) (9)
------------------------------------ ----- ----- ----- -----
Exceptional items included in
operating profits (214) (9) (356) (9)
------------------------------------ ----- ----- ----- -----
Gain on disposal of Specialties
business (after charging USD406m
of goodwill previously written
off to reserves) - - 237 -
Loss on closure of organophosphate
intermediates business - - - (46)
------------------------------------ ----- ----- ----- -----
Profit less losses on sale and
closure of operations - - 237 (46)
------------------------------------ ----- ----- ----- -----
Merck 'Trigger Event' payment - - (713) -
Other merger costs - - (204) -
------------------------------------ ----- ----- ----- -----
Merger costs - - (917) -
------------------------------------ ----- ----- ----- -----
Total exceptional items before
taxation (214) (9) (1,036) (55)
Net taxation credit 44 4 185 16
------------------------------------ ----- ----- ----- -----
(170) (5) (851) (39)
------------------------------------ ----- ----- ----- -----
Current period cash flow related to 3rd Nine
exceptional items and merger related Quarter Months
payments, before associated tax 1999 1999
charge/relief USDm USDm
------------------------------------ ----- -----
Merger and integration expenditure
Merck 'Trigger Event' payment - (713)
Other merger and integration costs (114) (398)
------------------------------------ ----- -----
Outflow related to exceptional items (114) (1,111)
Proceeds from the disposal of
Specialties business (included in
'Acquisitions and disposals') - 1,937
------------------------------------ ----- -----
Exceptional item cash flow (114) 826
------------------------------------ ----- -----
'First Option' payment to Merck
(included in 'Net cash expenditure
on fixed assets') - (967)
------------------------------------ ----- -----
Exceptional and Merger related cash
outflow (114) (141)
------------------------------------ ----- -----
5 SEGMENT ANALYSIS
3rd 3rd Nine Nine
Quarter Quarter Months Months
1999 1998 1999 1998
USDm USDm USDm USDm
------------------------------------ ----- ----- ----- -----
Sales by class of business
Healthcare 3,766 2,916 11,148 7,561
----------------------------------------------------------------------------
Pharmaceuticals 3,720 2,865 10,984 7,408
Salick Health Care 46 51 164 153
----------------------------------------------------------------------------
Agrochemicals 492 565 2,104 2,258
Other trading 21 22 70 65
------------------------------------ ----- ----- ----- -----
Continuing operations 4,279 3,503 13,322 9,884
------------------------------------ ----- ----- ----- -----
Operating profit/(loss) before
exceptional items
Healthcare 958 628 2,792 1,758
----------------------------------------------------------------------------
Pharmaceuticals 960 631 2,798 1,764
Salick Health Care (2) (3) (6) (6)
----------------------------------------------------------------------------
Agrochemicals (5) 28 278 364
Other trading (4) (10) (18) (18)
------------------------------------ ----- ----- ----- -----
Continuing operations 949 646 3,052 2,104
------------------------------------ ----- ----- ----- -----
Operating profit/(loss) before
exceptional items as a percentage
of sales % % % %
------------------------------------ ----- ----- ----- -----
Healthcare 25.4 21.5 25.0 23.3
----------------------------------------------------------------------------
Pharmaceuticals 25.8 22.0 25.5 23.8
Salick Health Care (4.3) (5.9) (3.7) (3.9)
----------------------------------------------------------------------------
Agrochemicals (1.0) 5.0 13.2 16.1
------------------------------------ ----- ----- ----- -----
Continuing operations 22.2 18.4 22.9 21.3
------------------------------------ ----- ----- ----- -----
6 PRODUCTS AND TERRITORIAL SEGMENT SALES ANALYSIS
Pro Forma
3rd 3rd Nine Nine Pro Forma
Quarter Quarter % Growth Months Months % Growth
1999 1998 Constant 1999 1998 Constant
Pharmaceuticals USDm USDm Currency USDm USDm Currency
------------------ ----- ----- ----- ----- ----- -----
Product Analysis
Gastrointestinal:
Losec 1,539 965 61% 4,387 3,433 29%
Others 12 12 17% 36 33 15%
------------------ ----- ----- ----- ----- ----- -----
Total
Gastrointestinal 1,551 977 61% 4,423 3,466 29%
------------------ ----- ----- ----- ----- ----- -----
Cardiovascular:
Zestril 322 268 21% 924 779 20%
Tenormin 121 116 4% 368 361 2%
Seloken 152 123 26% 409 328 25%
Plendil 112 73 56% 328 268 22%
Imdur 26 29 -10% 85 84 1%
Ramace 16 16 - 51 47 9%
Atacand 43 12 n/m 116 24 n/m
Others 84 85 4% 265 254 5%
------------------ ----- ----- ----- ----- ----- -----
Total
Cardiovascular 876 722 23% 2,546 2,145 19%
------------------ ----- ----- ----- ----- ----- -----
Respiratory:
Pulmicort 169 156 12% 539 494 10%
Accolate 35 50 -28% 109 124 -11%
Rhinocort 38 39 - 137 119 16%
Bricanyl 30 34 -6% 103 112 -6%
Oxis 22 11 109% 63 28 129%
Others 12 12 -17% 41 41 -2%
------------------ ----- ----- ----- ----- ----- -----
Total Respiratory 306 302 4% 992 918 9%
------------------ ----- ----- ----- ----- ----- -----
Oncology:
Zoladex 161 157 1% 492 458 6%
Nolvadex 142 126 11% 429 390 9%
Casodex 79 55 46% 245 171 44%
Arimidex 37 28 39% 100 86 18%
Others 6 4 50% 18 12 50%
------------------ ----- ----- ----- ----- ----- -----
Total Oncology 425 370 14% 1,284 1,117 14%
------------------ ----- ----- ----- ----- ----- -----
Specialist
/Hospital:
Diprivan 137 134 4% 464 457 3%
Xylocaine 56 58 -3% 184 174 4%
Marcaine 21 19 11% 63 59 7%
Naropin 11 8 51% 33 21 62%
Zomig 49 30 66% 135 62 120%
Seroquel 66 25 168% 161 44 n/m
Merrem 37 31 32% 114 96 28%
Other Products 158 165 -6% 503 492 2%
Astra Tech 27 24 13% 82 72 15%
------------------ ----- ----- ----- ----- ----- -----
Total Specialist
/Hospital 562 494 15% 1,739 1,477 19%
------------------ ----- ----- ----- ----- ----- -----
Total
Pharmaceuticals 3,720 2,865 31% 10,984 9,123 21%
------------------ ----- ----- ----- ----- ----- -----
n/m = not meaningful
6 PRODUCTS AND TERRITORIAL SEGMENT SALES ANALYSIS (CONTINUED)
Pro Forma
3rd 3rd Nine Nine Pro Forma
Quarter Quarter % Growth Months Months % Growth
1999 1998 Constant 1999 1998 Constant
Pharmaceuticals USDm USDm Currency USDm USDm Currency
---------------- ----- ----- ----- ----- ----- -----
Territorial
Analysis
US 1,937 1,213 60% 5,407 4,168 30%
Japan 164 126 7% 468 387 6%
France 201 169 25% 624 503 25%
Germany 194 212 -3% 643 629 3%
Italy 121 122 3% 438 377 17%
Sweden 79 78 6% 263 256 7%
UK 198 204 1% 590 570 6%
Rest of World 826 741 16% 2,551 2,233 17%
---------------- ----- ----- ----- ----- ----- -----
3,720 2,865 31% 10,984 9,123 21%
---------------- ----- ----- ----- ----- ----- -----
Pro Forma constant currency % growth has been calculated as if the Astra
Merck restructuring had occurred on 1 January 1998 and excluding the effects
arising from exchange rate movements.
3rd 3rd Nine Nine
Quarter Quarter % Growth Months Months % Growth
1999 1998 Constant 1999 1998 Constant
Agrochemicals USDm USDm Currency USDm USDm Currency
--------------- ----- ----- ----- ----- ----- -----
Product Analysis
Herbicides:
Non-Selective 164 181 -9% 533 550 -3%
Selective 100 129 -24% 590 735 -20%
---------------- ----- ----- ----- ----- ----- -----
Total
Herbicides 264 310 -16% 1,123 1,285 -13%
Insecticides 100 120 -16% 330 383 -14%
Fungicides 115 117 -1% 590 522 13%
Others 13 18 -28% 61 68 -13%
---------------- ----- ----- ----- ----- ----- -----
Total
Agrochemicals 492 565 -13% 2,104 2,258 -7%
---------------- ----- ----- ----- ----- ----- -----
Territorial
Analysis
North America 151 146 2% 727 825 -12%
Latin America 137 187 -25% 302 396 -23%
Europe 122 145 -13% 755 745 1%
Asia, Africa,
Australasia 82 87 -13% 320 292 7%
---------------- ----- ----- ----- ----- ----- -----
492 565 -13% 2,104 2,258 -7%
--------------- ----- ----- ----- ----- ----- -----
Constant currency % growth has been calculated excluding the effects arising
from exchange rate movements.
Consolidated Profit and Loss Account
Continuing Operations
Before
Exceptional Exceptional Discontinued
For the nine months ended Items Items Operations Total
30 September 1999 USDm USDm USDm USDm
--------------------------- ----- ----- ----- -----
Sales 13,322 - 630 13,952
Cost of sales (4,205) (15) (394) (4,614)
Distribution costs (244) - (29) (273)
Research and development (1,976) (17) (44) (2,037)
Selling, general and
administrative expenses (3,971) (324) (98) (4,393)
Other income 126 - 2 128
--------------------------- ----- ----- ----- -----
Group operating profit 3,052 (356) 67 2,763
Share of joint ventures'
and associates' operating
profits 5 - 1 6
Profits less losses on sale
and closure of operations - - 237 237
Merger costs - (917) - (917)
Net interest (24) - - (24)
--------------------------- ----- ----- ----- -----
Profit on ordinary
activities before
taxation 3,033 (1,273) 305 2,065
Taxation (906) 282 (121) (745)
--------------------------- ----- ----- ----- -----
Profit on ordinary
activities after taxation 2,127 (991) 184 1,320
Attributable to minorities (4) - - (4)
--------------------------- ----- ----- ----- -----
Net profit for the period 2,123 (991) 184 1,316
Dividends to Shareholders (408) - - (408)
--------------------------- ----- ----- ----- -----
Profit retained for the
period 1,715 (991) 184 908
--------------------------- ----- ----- ----- -----
Earnings per Ordinary Share
before exceptional items USD1.20 - USD0.02 USD1.22
Earnings per Ordinary Share USD1.20 USD(0.56) USD0.10 USD0.74
Diluted earnings per
Ordinary Share USD1.20 USD(0.56) USD0.10 USD0.74
--------------------------- ----- ----- ----- -----
Weighted average number of
Ordinary Shares in issue
(millions) 1,776
--------------------------- -----
Diluted average number of
Ordinary Shares in issue
(millions) 1,780
--------------------------- -----
Pro Forma* Consolidated Profit and Loss Account
Continuing Operations
Before
Exceptional Exceptional Discontinued
For the nine months ended Items Items Operations Total
30 September 1998 USDm USDm USDm USDm
--------------------------- ----- ----- ----- -----
Sales 11,599 - 974 12,573
Cost of sales (3,581) - (618) (4,199)
Distribution costs (241) - (46) (287)
Research and development (1,760) - (62) (1,822)
Selling, general and
administrative expenses (3,557) (9) (149) (3,715)
Other income 112 - 7 119
--------------------------- ----- ----- ----- -----
Group operating profit 2,572 (9) 106 2,669
Share of joint ventures'
and associates' operating
profits 18 - 2 20
Profits less losses on sale
and closure of operations - - (46) (46)
Net interest (45) - - (45)
--------------------------- ----- ----- ----- -----
Profit on ordinary
activities before taxation 2,545 (9) 62 2,598
Taxation (779) 4 (26) (801)
--------------------------- ----- ----- ----- -----
Profit on ordinary
activities after taxation 1,766 (5) 36 1,797
Attributable to minorities 1 - - 1
--------------------------- ----- ----- ----- -----
Net profit for the period 1,767 (5) 36 1,798
Dividends to Shareholders (220) - - (220)
--------------------------- ----- ----- ----- -----
Profit retained for the
period 1,547 (5) 36 1,578
--------------------------- ----- ----- ----- -----
Earnings per Ordinary Share
before exceptional items USD1.00 - USD0.04 USD1.04
Earnings per Ordinary Share USD1.00 USD(0.01) USD0.02 USD1.01
Diluted earnings per
Ordinary Share USD1.00 USD(0.01) USD0.02 USD1.01
--------------------------- ----- ----- ----- -----
Weighted average number of
Ordinary Shares in issue
(millions) 1,778
--------------------------- -----
Diluted average number of
Ordinary Shares in issue
(millions) 1,782
--------------------------- -----
* See Basis of Pro Forma Figures described in Note 2.
Consolidated Profit and Loss Account
Continuing Operations
Before
Exceptional Exceptional Discontinued
For the nine months ended Items Items Operations Total
30 September 1998 USDm USDm USDm USDm
--------------------------- ----- ----- ----- -----
Sales 9,884 - 974 10,858
Cost of sales (2,930) - (618) (3,548)
Distribution costs (233) - (46) (279)
Research and development (1,682) - (62) (1,744)
Selling, general and
administrative expenses (3,047) (9) (149) (3,205)
Other income 112 - 7 119
--------------------------- ----- ----- ----- -----
Group operating profit 2,104 (9) 106 2,201
Share of joint ventures'
and associates' operating
profits 554 - 2 556
Profits less losses on sale
and closure of operations - - (46) (46)
Net interest 41 - - 41
--------------------------- ----- ----- ----- -----
Profit on ordinary
activities before
taxation 2,699 (9) 62 2,752
Taxation (820) 4 (26) (842)
--------------------------- ----- ----- ----- -----
Profit on ordinary
activities after taxation 1,879 (5) 36 1,910
Attributable to minorities 1 - - 1
--------------------------- ----- ----- ----- -----
Net profit for the period 1,880 (5) 36 1,911
Dividends to Shareholders (220) - - (220)
--------------------------- ----- ----- ----- -----
Profit retained for the
period 1,660 (5) 36 1,691
--------------------------- ----- ----- ----- -----
Earnings per Ordinary Share
before exceptional items USD1.06 - USD0.04 USD1.10
Earnings per Ordinary Share USD1.06 USD(0.01) USD0.02 USD1.07
Diluted earnings per
Ordinary Share USD1.06 USD(0.01) USD0.02 USD1.07
--------------------------- ----- ----- ----- -----
Weighted average number of
Ordinary Shares in issue
(millions) 1,778
--------------------------- -----
Diluted average number of
Ordinary Shares in issue
(millions) 1,782
--------------------------- -----
Translation of key financial information
For the three months 1999 1998 1999 1998 1999 1998
ended 30 September USDm USDm GBPm GBPm SEKm SEKm
-------------------- ----- ----- ----- ----- ----- -----
Total Sales 4,294 3,805 2,611 2,313 35,078 31,083
Continuing
operations 4,279 3,503 2,601 2,130 34,955 28,616
Pharmaceuticals 3,720 2,865 2,262 1,742 30,389 23,404
-------------------- ----- ----- ----- ----- ----- -----
Operating profit
before exceptional
items (EI) 945 674 575 410 7,720 5,506
Continuing
operations before
EI 949 646 577 393 7,752 5,277
Pharmaceuticals
before EI 960 631 584 384 7,842 5,155
-------------------- ----- ----- ----- ----- ----- -----
Profit before tax on
continuing
operations before
EI 941 644 572 392 7,687 5,261
-------------------- ----- ----- ----- ----- ----- -----
Net profit for the
period 484 471 294 286 3,954 3,848
-------------------- ----- ----- ----- ----- ----- -----
Earnings per
Ordinary Share
before EI USD0.37 USD0.27 22.5p 16.4p SEK3.02 SEK2.21
-------------------- ----- ----- ----- ----- ----- -----
For the nine months 1999 1998 1999 1998 1999 1998
ended 30 September USDm USDm GBPm GBPm SEKm SEKm
-------------------- ----- ----- ----- ----- ----- -----
Total Sales 13,952 10,858 8,482 6,601 113,974 88,699
Continuing
operations 13,322 9,884 8,099 6,009 108,827 80,742
Pharmaceuticals 10,984 7,408 6,678 4,504 89,728 60,516
-------------------- ----- ----- ----- ----- ----- -----
Operating profit
before exceptional
items (EI) 3,119 2,210 1,896 1,344 25,479 18,053
Continuing
operations before
EI 3,052 2,104 1,855 1,279 24,932 17,188
Pharmaceuticals
before EI 2,798 1,764 1,701 1,072 22,857 14,410
-------------------- ----- ----- ----- ----- ----- -----
Profit before tax on
continuing
operations before
EI 3,033 2,699 1,844 1,641 24,777 22,048
-------------------- ----- ----- ----- ----- ----- -----
Net profit for the
period 1,316 1,911 800 1,162 10,750 15,611
-------------------- ----- ----- ----- ----- ----- -----
Basic earnings per
Ordinary Share USD0.74 USD1.07 45.0p 65.2p SEK6.05 SEK8.74
Earnings per
Ordinary Share
before EI USD1.22 USD1.10 74.3p 67.0p SEK9.97 SEK8.99
-------------------- ----- ----- ----- ----- ----- -----
Dividend per Ordinary
Share USD0.23 USD0.23 14.2p 14.0p SEK1.89 SEK1.82
-------------------- ----- ----- ----- ----- ----- -----
Net cash inflow from
operating
activities 2,128 2,431 1,294 1,478 17,384 19,859
Increase/(decrease)
in net cash funds 412 (1,168) 250 (710) 3,366 (9,541)
-------------------- ----- ----- ----- ----- ----- -----
Shareholders'
funds - equity
30 September 1999/
31 December 1998 11,889 10,929 7,228 6,644 97,121 89,279
-------------------- ----- ----- ----- ----- ----- -----
Sterling (GBP) and Swedish Kronor equivalents are shown for convenience and
have been calculated using the current period end rates of USD1=GBP0.6080 and
USD1=SEK 8.1690, respectively. Dividend per Ordinary Share is shown as the
actual amount payable using the rates at the date of declaration of the
dividend.
Shareholder Information
ANNOUNCEMENTS AND MEETINGS
----------------------------------------------------------------------------
Preliminary announcement of full year results
and announcement of second interim dividend 24 February 2000
(Provisional)
Annual General Meeting 26 May 2000
DIVIDENDS
----------------------------------------------------------------------------
The record date for the first interim dividend payable on 25 October 1999
(in the UK, Sweden and the US) was 10 September 1999. Ordinary Shares
traded ex-dividend on the London Stock Exchange from 6 September 1999 and
on the Stockholm Stock Exchange from 8 September 1999. ADSs traded
ex-dividend on the New York Stock Exchange from 8 September 1999.
Future dividends will normally be paid as follows:
First interim Announced in early August and paid in late October.
Second interim Announced in February and paid in late April.
TRADEMARKS
----------------------------------------------------------------------------
All product or brand names included in Note 6 of this Interim Statement and
the following names are trademarks of, or licensed to, AstraZeneca PLC or
its subsidiary companies:
Amistar Prilosec Rhinocort Aqua
For simplicity, sales are reported under the above lead brand names, whereas
some compounds are sold under several brand names to address separate market
niches.
ADDRESSES FOR CORRESPONDENCE
----------------------------------------------------------------------------
Registrar and Depositary Registered Office Swedish Securities
Transfer Office for ADRs Register Centre
The AstraZeneca Morgan Guaranty 15 Stanhope Gate Vardepapperscentralen
Registrar Trust Company London VPC AB
Lloyds TSB of New York W1Y 6LN Box 7822
Registrars 60 Wall Street S-103 97 Stockholm
The Causeway New York Sweden
Worthing New York 10260
West Sussex
BN99 6DA
Tel: (01903) Tel: (212) Tel: (0171) Tel: (8)
502 541 648 3208 304 5000 402 9000
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
----------------------------------------------------------------------------
In order to utilise the 'Safe Harbour' provisions of the United States
Private Securities Litigation Reform Act of 1995, AstraZeneca is providing
the following cautionary statement. This Interim Report contains certain
forward-looking statements about AstraZeneca. We intend to identify the
forward-looking statements in this Interim Report, by using the words
'anticipates,' 'believes,' 'expects,' 'intends,' and similar expressions in
such statements. Although we believe our expectations are based on
reasonable assumptions, our forward-looking statements are subject to
numerous risks and uncertainties and factors that could cause actual
outcomes and results to be materially different from those projected or
implied. Important factors that could cause actual results to differ
materially from those in our forward-looking statements, certain of which
are beyond our control, include, among other things: risk of loss or
expiration of patents or trademarks (in particular, the expiration in the
near future of patents covering Losec and Zestril); the difficulty of
integrating Zeneca's and Astra's large and complex businesses on a timely
basis and realising synergies; the risk that R&D will not yield new products
that achieve commercial success; the impact of competition, price controls
and price reductions; the difficulties of obtaining governmental regulatory
approvals for new products; the risk of substantial product liability
claims; exposure to fluctuations in exchange rates for foreign currencies;
exposure to US environmental liabilities and the impact on the Agrochemicals
business from the growing importance to agriculture of biotechnology and the
use of genetically modified crops. No assurances can be given that any of
the events anticipated by our forward-looking statements will transpire or
occur, or if any of them do so, what impact they will have on the results
of operations and financial condition of AstraZeneca.
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