Final Results Part 2 of 2

AstraZeneca PLC 8 February 2001 Part 2 of 2 Consolidated Profit and Loss Account For Continuing Operations Before Exceptional Items 4th 4th Quarter Quarter Year Year 2000 1999 2000 1999 USDm USDm USDm USDm ------------------------------------ ----- ----- ----- ----- Sales 4,144 3,916 15,804 15,134 Cost of sales (1,136) (1,045) (4,181) (4,087) Distribution costs (42) (57) (210) (230) Research and development (778) (711) (2,620) (2,472) Selling, general and administrative expenses (1,317) (1,349) (5,032) (4,915) Other operating income 100 42 223 140 ------------------------------------ ----- ----- ----- ----- Group operating profit 971 796 3,984 3,570 Share of joint venture and associates' operating profits/ (losses) (19) (14) (12) (10) Net interest and dividend income 82 20 138 (4) ------------------------------------ ----- ----- ----- ----- Profit on ordinary activities before taxation 1,034 802 4,110 3,556 Taxation (300) (240) (1,192) (1,048) ------------------------------------ ----- ----- ----- ----- Profit on ordinary activities after taxation 734 562 2,918 2,508 Attributable to minorities 1 2 (9) - ------------------------------------ ----- ----- ----- ----- Net profit for the period 735 564 2,909 2,508 ------------------------------------ ----- ----- ----- ----- Earnings per Ordinary Share USD0.42 USD0.32 USD1.64 USD1.41 Diluted earnings per Ordinary Share USD0.42 USD0.32 USD1.64 USD1.41 ------------------------------------ ----- ----- ----- ----- Weighted average number of Ordinary Shares in issue (millions) 1,766 1,777 1,768 1,776 ------------------------------------ ----- ----- ----- ----- Diluted average number of Ordinary Shares in issue (millions) 1,768 1,779 1,770 1,779 ------------------------------------ ----- ----- ----- ----- Statutory Consolidated Profit and Loss Accounts including discontinued operations and exceptional items for the years ended 31 December 2000 and 1999 are provided on pages 10 and 11, respectively. Consolidated Profit and Loss Account Cont- Discont- inuing inued Except- oper- oper- ional ations ations items Total For the year ended 31 December 2000 USDm USDm USDm USDm ------------------------------------ ----- ----- ----- ----- Sales 15,804 2,299 - 18,103 Cost of sales (4,181) (1,299) (11) (5,491) Distribution costs (210) (76) - (286) Research and development (2,620) (222) (51) (2,893) Selling, general and administrative expenses (5,032) (399) (260) (5,691) Other operating income 223 43 - 266 ------------------------------------ ----- ----- ----- ----- Group operating profit 3,984 346 (322) 4,008 Share of joint venture and associates' operating profits/ (losses) (12) - (137) (149) Profits less losses on sale, closure, or demerger of operations - - (150) (150) Net interest and dividend income 138 - - 138 ------------------------------------ ----- ----- ----- ----- Profit on ordinary activities before taxation 4,110 346 (609) 3,847 Taxation (1,192) (135) 28 (1,299) ------------------------------------ ----- ----- ----- ----- Profit on ordinary activities after taxation 2,918 211 (581) 2,548 Attributable to minorities (9) (1) - (10) ------------------------------------ ----- ----- ----- ----- Net profit for the financial year 2,909 210 (581) 2,538 ------------------------------------ ----- ----- ----- Dividends to Shareholders Cash (1,236) Dividend in specie - demerger of Zeneca Agrochemicals (1,669) ------------------------------------ ----- Loss retained for the financial year (367) ------------------------------------ ----- Earnings per Ordinary Share USD1.64 USD0.12 USD(0.32) USD1.44 Diluted earnings per Ordinary Share USD1.64 USD0.12 USD(0.32) USD1.44 ------------------------------------ ----- ----- ----- ----- Weighted average number of Ordinary Shares in issue (millions) 1,768 ------------------------------------ ----- Diluted average number of Ordinary Shares in issue (millions) 1,770 ------------------------------------ ----- Consolidated Profit and Loss Account Cont- Discont- inuing inued Except- oper- oper- ional ations ations items Total For the year ended 31 December 1999 USDm USDm USDm USDm ------------------------------------ ----- ----- ----- ----- Sales 15,134 3,311 - 18,445 Cost of sales (4,087) (1,913) (37) (6,037) Distribution costs (230) (113) - (343) Research and development (2,472) (341) (110) (2,923) Selling, general and administrative expenses (4,915) (655) (1,015) (6,585) Other operating income 140 49 - 189 ------------------------------------ ----- ----- ----- ----- Group operating profit 3,570 338 (1,162) 2,746 Share of joint venture and associates' operating profits/ (losses) (10) 3 - (7) Profits less losses on sale and closure of operations - - 237 237 Merger costs - - (1,013) (1,013) Net interest (4) - - (4) ------------------------------------ ----- ----- ----- ----- Profit on ordinary activities before taxation 3,556 341 (1,938) 1,959 Taxation (1,048) (118) 351 (815) ------------------------------------ ----- ----- ----- ----- Profit on ordinary activities after taxation 2,508 223 (1,587) 1,144 Attributable to minorities - (1) - (1) ------------------------------------ ----- ----- ----- ----- Net profit for the financial year 2,508 222 (1,587) 1,143 ------------------------------------ ----- ----- ----- Dividends to Shareholders (1,242) ------------------------------------ ----- Loss retained for the financial year (99) ------------------------------------ ----- Earnings per Ordinary Share USD1.41 USD0.13 USD(0.90) USD0.64 Diluted earnings per Ordinary Share USD1.41 USD0.13 USD(0.90) USD0.64 ------------------------------------ ----- ----- ----- ----- Weighted average number of Ordinary Shares in issue (millions) 1,776 ------------------------------------ ----- Diluted average number of Ordinary Shares in issue (millions) 1,779 ------------------------------------ ----- Consolidated Balance Sheet 2000 1999 At 31 December USDm USDm ------------------------------------ ----- ----- Fixed assets Tangible fixed assets 4,957 5,981 Goodwill and intangible assets 2,951 3,736 Fixed asset investments 11 185 ------------------------------------ ----- ----- 7,919 9,902 ------------------------------------ ----- ----- Current assets Stocks 2,105 2,156 Debtors 3,960 4,470 Cash and short-term investments 4,450 3,288 ------------------------------------ ----- ----- 10,515 9,914 ------------------------------------ ----- ----- Total assets 18,434 19,816 ------------------------------------ ----- ----- Creditors due within one year Short-term borrowings and current instalments of loans (214) (378) Other creditors (6,683) (6,641) ------------------------------------ ----- ----- (6,897) (7,019) ------------------------------------ ----- ----- Net current assets 3,618 2,895 ------------------------------------ ----- ----- Total assets less current liabilities 11,537 12,797 ------------------------------------ ----- ----- Creditors due after more than one year Loans (631) (739) Other creditors (296) (463) Provisions for liabilities and charges (1,068) (1,253) ------------------------------------ ----- ----- (1,995) (2,455) ------------------------------------ ----- ----- Net assets 9,542 10,342 ------------------------------------ ----- ----- Capital and reserves Shareholders' funds - equity interests 9,521 10,302 Minority equity interests 21 40 ------------------------------------ ----- ----- Shareholders' funds and minority interests 9,542 10,342 ------------------------------------ ----- ----- Consolidated Cash Flow Statement Year Year 2000 1999 For the year ended 31 December USDm USDm ------------------------------------ ----- ----- Cash flow from operating activities Operating profit before exceptional items 4,330 3,908 Depreciation and amortisation 988 1,069 Increase in working capital (340) (219) Other non-cash movements 14 (59) ------------------------------------ ----- ----- Net cash inflow from operating activities before exceptional items 4,992 4,699 Outflow related to exceptional items (809) (1,586) ------------------------------------ ----- ----- Net cash inflow from operating activities 4,183 3,113 Dividends received from joint ventures and associates - 3 Returns on investments and servicing of finance 19 29 Tax paid (648) (1,020) Capital expenditure and financial investment (1,426) (2,731) Acquisitions and disposals (169) 1,978 Net repayment of debt by Zeneca Agrochemicals 909 - Equity dividends paid to Shareholders (1,220) (1,216) ------------------------------------ ----- ----- Net cash inflow before management of liquid resources and financing 1,648 156 ------------------------------------ ----- ----- Management of liquid resources Movement in short-term investments and fixed deposits (net) (608) (254) ------------------------------------ ----- ----- Financing (400) (182) ------------------------------------ ----- ----- Increase/(decrease) in cash in the period 640 (280) ------------------------------------ ----- ----- Statement of Total Recognised Gains and Losses 2000 1999 For the year ended 31 December USDm USDm ------------------------------------ ----- ----- Net profit for the financial year 2,538 1,143 Exchange adjustments on net assets (1,038) (740) Translation differences on foreign currency borrowings 154 132 Tax on translation differences on foreign currency borrowings (42) (22) ------------------------------------ ----- ----- Total recognised gains and losses for the financial year 1,612 513 ------------------------------------ ----- ----- Notes to the Preliminary Announcement 1 BASIS OF PREPARATION AND ACCOUNTING POLICIES The results for the year ended 31 December 2000 have been prepared in accordance with UK generally accepted accounting principles. The accounting policies applied are those set out in AstraZeneca PLC's 1999 Annual Report and Form 20-F, except that during the current period AstraZeneca adopted Financial Reporting Standard No. 15 'Tangible Fixed Assets' (FRS 15) and Financial Reporting Standard No. 16 'Current Tax' (FRS 16). The adoption of these standards had no material impact on the Group's results or net assets. On 13 November 2000 AstraZeneca demerged Zeneca Agrochemicals, which was merged with the agribusiness of Novartis to form Syngenta. The impact of the demerger on the AstraZeneca financial statements is shown in Note 3 below. The business, together with the Zeneca Specialties business, which was sold in 1999, is reported as discontinued in the financial statements. The results for the year ended 2000 presented in this preliminary announcement are extracted from, and are consistent with, those in the Group's audited financial statements for the year ended 31 December 2000 and those financial statements will be delivered to the Registrar of Companies following the Company's annual general meeting. The information in this preliminary announcement does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. Statutory accounts for the year ended 31 December 1999 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 JOINT VENTURES AND ASSOCIATES The Group's share of joint venture sales for the year ended 31 December 2000 amounted to USD195m and USD208m for the comparative period. Share of joint venture and associates' operating (loss)/profits for the year to 31 December 2000 amounted to USD(149)m and USDnil respectively, and for the comparative period USD(9)m and USD2m, respectively. Joint venture losses reflect operational losses of USD12m, together with an exceptional charge of USD88m to provide for impairment of the 50% interest in the seed company Advanta, and write-off of USD49m of related goodwill which had previously be taken to reserves. 3 ZENECA AGROCHEMICALS DEMERGER The contribution of Zeneca Agrochemicals to Syngenta was treated in the financial statements as a dividend in specie. Shares in Syngenta were distributed to shareholders on the basis of 1 Syngenta share for every 40.237651 AstraZeneca shares held. The impact of the demerger is set out below. USDm ------------------------------------ ----- Fixed assets 1,491 Current assets 2,130 Creditors due within one year (1,306) Creditors due after more than one year and provisions (246) ------------------------------------ ----- Book value of Zeneca Agrochemicals net assets disposed 2,069 Minority interest share of net assets (10) Goodwill previously charged to reserve written back 813 ------------------------------------ ----- 2,872 Repayment of debt by Zeneca Agrochemicals Net repayment of debt per Cash Flow Statement (909) Net financial liabilities demerged (294) (1,203) ------------------------------------ ----- ----- Dividend in specie 1,669 ------------------------------------ ----- 4 EXCEPTIONAL ITEMS 4th 4th Quarter Quarter Year Year Exceptional items included in the 2000 1999 2000 1999 profit and loss account USDm USDm USDm USDm ------------------------------------ ----- ----- ----- ----- Integration and synergy costs (100) (532) (322) (864) Astra Pharmaceuticals L.P. restructuring costs - (4) - (28) Salick Health Care impairment and rationalisation costs - (145) - (145) Agrochemicals restructuring costs* - (125) - (125) ------------------------------------ ----- ----- ----- ----- Exceptional items included in operating profits (100) (806) (322) (1,162) ------------------------------------ ----- ----- ----- ----- Impairment of investment in Advanta B.V. (after charging USD49m of goodwill previously written off to reserves) (137) - (137) - Costs related to the demerger of Zeneca Agrochemicals and formation of Syngenta* (150) - (150) - Gain on disposal of Specialties business (after charging USD406m of goodwill previously written off to reserves)* - - - 237 ------------------------------------ ----- ----- ----- ----- Profit/(loss) on sale and closure of operations and assets (287) - (287) 237 ------------------------------------ ----- ----- ----- ----- Merck 'Trigger Event' payment and related costs - (96) - (809) Other merger costs - - - (204) ------------------------------------ ----- ----- ----- ----- Merger costs - (96) - (1,013) ------------------------------------ ----- ----- ----- ----- Total exceptional items before taxation (387) (902) (609) (1,938) Net taxation (charge)/credit (15) 166 28 351 ------------------------------------ ----- ----- ----- ----- (402) (736) (581) (1,587) ------------------------------------ ----- ----- ----- ----- * These items relate to discontinued operations Current period cash flow related to exceptional items and merger Year Year related payments, before 2000 1999 associated tax charge/relief USDm USDm ------------------------------------ ----- ----- Merck 'Trigger Event' payment (93) (713) Merger, integration and synergy costs (532) (527) Salick Health Care rationalisation (11) 12 Agrochemicals restructuring (46) (20) Costs relating to the disposal of Specialties business (62) (338) Demerger of Zeneca Agrochemicals and formation of Syngenta (65) - ------------------------------------ ----- ----- Outflow related to exceptional charges (809) (1,586) Proceeds from the disposal of Specialties business (included in 'Acquisitions and disposals') - 1,956 Repayment of debt by Zeneca Agrochemicals 909 - ------------------------------------ ----- ----- Exceptional item cash flow 100 370 ------------------------------------ ----- ----- 'First Option' payment to Merck (included in 'Capital expenditure and financial investment') - (967) ------------------------------------ ----- ----- Exceptional and merger related cash flow 100 (597) ------------------------------------ ----- ----- 5 RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS 2000 1999 USDm USDm ------------------------------------ ----- ----- Shareholders' funds at beginning of year 10,302 10,929 ------------------------------------ ----- ----- Net profit for the financial year 2,538 1,143 Dividends - cash (1,236) (1,242) - dividend in specie (1,669) - ------------------------------------ ----- ----- (367) (99) ------------------------------------ ----- ----- Issues of AstraZeneca PLC Ordinary Shares 19 19 Repurchase of AstraZeneca PLC Ordinary Shares (353) (183) Astra AB minority interest buy out (8) (142) Goodwill written back 862 410 Foreign currency adjustments, net of tax (926) (630) Other movements (8) (2) ------------------------------------ ----- ----- Net reduction in Shareholders' funds (781) (627) ------------------------------------ ----- ----- Shareholders' funds at end of year 9,521 10,302 ------------------------------------ ----- ----- 6 NET CASH FUNDS The table below provides an analysis of net cash funds and a reconciliation of net cash flow to movement in net cash funds. Other Acquis- non- Exc- At itions* cash hange At 1 Jan Cash & dis- move- move- 31 Dec 2000 flow posals ments ments 2000 USDm USDm USDm USDm USDm USDm --------------------------------------------------------------------------- Loans due after 1 year (739) (28) 25 99 12 (631) Current instalments of loans (34) 25 11 (97) 7 (88) Finance leases (2) 2 - - - - --------------------------------------------------------------------------- Total loans and lease finance (775) (1) 36 2 19 (719) --------------------------------------------------------------------------- Short-term investments 2,859 608 (1) 46 (83) 3,429 Cash 429 613 - - (21) 1,021 Overdrafts (167) 27 - - 27 (113) Short-term borrowings, excluding overdrafts (177) 67 92 - 5 (13) --------------------------------------------------------------------------- 2,944 1,315 91 46 (72) 4,324 --------------------------------------------------------------------------- Net cash funds 2,169 1,314 127 48 (53) 3,605 --------------------------------------------------------------------------- Issue of shares (19) Repurchase of shares 353 --------------------------------------------------------------------------- Net cash inflow before management of liquid resources and financing 1,648 --------------------------------------------------------------------------- * Excluding cash and overdrafts 7 SEGMENT ANALYSIS 4th 4th Quarter Quarter Year Year 2000 1999 2000 1999 USDm USDm USDm USDm ------------------------------------ ----- ----- ----- ----- Sales by class of business Healthcare 4,118 3,894 15,698 15,042 Other trading 26 22 106 92 ------------------------------------ ----- ----- ----- ----- Continuing operations 4,144 3,916 15,804 15,134 ------------------------------------ ----- ----- ----- ----- Agrochemicals (discontinued) 121 553 2,299 2,657 ------------------------------------ ----- ----- ----- ----- Specialties (discontinued) - 24 - 654 ------------------------------------ ----- ----- ----- ----- Group 4,265 4,493 18,103 18,445 ------------------------------------ ----- ----- ----- ----- Operating profit/(loss) before exceptional items Healthcare 978 803 4,011 3,595 Other trading (7) (7) (27) (25) ------------------------------------ ----- ----- ----- ----- Continuing operations 971 796 3,984 3,570 ------------------------------------ ----- ----- ----- ----- Agrochemicals (discontinued) (6) (11) 346 267 ------------------------------------ ----- ----- ----- ----- Specialties (discontinued) - 4 - 71 ------------------------------------ ----- ----- ----- ----- Group 965 789 4,330 3,908 ------------------------------------ ----- ----- ----- ----- Operating profit/(loss) before exceptional items as a percentage of sales % % % % ------------------------------------ ----- ----- ----- ----- Healthcare 23.7 20.6 25.6 23.9 Continuing operations 23.4 20.3 25.2 23.6 ------------------------------------ ----- ----- ----- ----- 8 PRODUCT AND TERRITORIAL SEGMENT SALES ANALYSIS 4th 4th Quarter Quarter % Growth Year Year % Growth 2000 1999 Constant 2000 1999 Constant USDm USDm Currency USDm USDm Currency ------------------ ----- ----- ----- ----- ----- ----- Gastrointestinal: Losec/Prilosec 1,728 1,522 19% 6,260 5,909 9% Nexium 13 - - 17 - - Others 11 12 9% 45 48 2% ------------------ ----- ----- ----- ----- ----- ----- Total Gastrointestinal 1,752 1,534 20% 6,322 5,957 9% ------------------ ----- ----- ----- ----- ----- ----- Cardiovascular: Zestril 228 297 -17% 1,188 1,221 1% Seloken/Toprol-XL 172 122 50% 577 531 13% Tenormin 108 141 -16% 471 509 -4% Plendil 127 124 10% 480 452 11% Atacand 97 55 92% 293 171 82% Others 110 131 -7% 468 532 -6% ------------------ ----- ----- ----- ----- ----- ----- Total Cardiovascular 842 870 5% 3,477 3,416 6% ------------------ ----- ----- ----- ----- ----- ----- Respiratory: Pulmicort 193 191 13% 705 730 5% Rhinocort 56 30 97% 221 167 37% Accolate 21 47 -55% 152 156 -2% Bricanyl 31 39 -11% 125 142 -6% Oxis 32 24 58% 116 87 48% Others 15 16 13% 53 57 2% ------------------ ----- ----- ----- ----- ----- ----- Total Respiratory 348 347 11% 1,372 1,339 10% ------------------ ----- ----- ----- ----- ----- ----- Oncology: Zoladex 181 194 1% 734 686 10% Nolvadex 171 144 21% 576 573 1% Casodex 119 95 33% 433 340 31% Arimidex 39 40 10% 156 140 19% Others 8 7 14% 30 25 32% ------------------ ----- ----- ----- ----- ----- ----- Total Oncology 518 480 15% 1,929 1,764 12% ------------------ ----- ----- ----- ----- ----- ----- Specialist/Hospital: Diprivan 114 144 -15% 507 608 -14% Xylocaine 63 65 3% 238 249 -3% Marcaine 25 25 4% 92 88 8% Seroquel 131 71 89% 424 232 85% Zomig 59 54 18% 237 189 31% Merrem 48 39 33% 170 153 18% Other Products 148 192 -17% 640 728 -8% Astra Tech 29 29 17% 114 111 13% Salick Health Care 41 44 -7% 176 208 -15% ------------------ ----- ----- ----- ----- ----- ----- Total Specialist/ Hospital 658 663 5% 2,598 2,566 5% ------------------ ----- ----- ----- ----- ----- ----- Total Healthcare 4,118 3,894 13% 15,698 15,042 8% ------------------ ----- ----- ----- ----- ----- ----- 8 PRODUCT AND TERRITORIAL SEGMENT SALES ANALYSIS (CONT.) 4th 4th Quarter Quarter % Growth Year Year % Growth 2000 1999 Constant 2000 1999 Constant USDm USDm Currency USDm USDm Currency ------------------ ----- ----- ----- ----- ----- ----- Territorial Analysis USA: Pharmaceuticals 2,136 1,749 22% 7,977 7,156 12% Salick Health Care 41 44 -7% 176 208 -15% ------------------ ----- ----- ----- ----- ----- ----- Total USA 2,177 1,793 21% 8,153 7,364 11% Japan 244 242 3% 825 710 8% France 224 246 10% 886 870 16% Germany 171 207 -3% 699 850 -7% Italy 138 141 18% 555 579 9% Sweden 76 96 -2% 318 359 -4% UK 191 229 -3% 718 819 -7% Rest of World 897 940 6% 3,544 3,491 10% ------------------ ----- ----- ----- ----- ----- ----- Total Healthcare 4,118 3,894 13% 15,698 15,042 8% ------------------ ----- ----- ----- ----- ----- ----- Constant currency % growth has been calculated excluding the effects arising from exchange rate movements. Convenience Translation of Key Financial Information For the three months ended 31 2000 1999 2000 1999 2000 1999 December USDm USDm GBPm GBPm SEKm SEKm ------------------ ----- ----- ----- ----- ----- ----- Total Sales 4,265 4,493 2,858 3,010 40,684 42,859 Continuing operations 4,144 3,916 2,776 2,624 39,530 37,355 Healthcare 4,118 3,894 2,759 2,609 39,282 37,145 ------------------ ----- ----- ----- ----- ----- ----- Operating profit before exceptional items (EI) 965 789 647 529 9,205 7,526 Continuing operations before EI 971 796 651 533 9,262 7,593 Healthcare before EI 978 803 655 538 9,329 7,660 ------------------ ----- ----- ----- ----- ----- ----- Profit before tax on continuing operations before EI 1,034 802 693 537 9,863 7,650 ------------------ ----- ----- ----- ----- ----- ----- Net profit/(loss) for the period 331 (173) 222 (116) 3,157 (1,650) ------------------ ----- ----- ----- ----- ----- ----- Earnings per Ordinary Share pre EI USD0.42 USD0.32 GBP0.28 GBP0.21 SEK4.01 SEK3.05 ------------------ ----- ----- ----- ----- ----- ----- For the year ended 2000 1999 2000 1999 2000 1999 31 December USDm USDm GBPm GBPm SEKm SEKm ------------------ ----- ----- ----- ----- ----- ----- Total Sales 18,103 18,445 12,129 12,358 172,685 175,947 Continuing operations 15,804 15,134 10,589 10,140 150,754 144,363 Healthcare 15,698 15,042 10,518 10,078 149,743 143,486 ------------------ ----- ----- ----- ----- ----- ----- Operating profit before exceptional items (EI) 4,330 3,908 2,901 2,618 41,304 37,278 Continuing operations before EI 3,984 3,570 2,669 2,392 38,003 34,054 Healthcare before EI 4,011 3,595 2,687 2,409 38,261 34,293 ------------------ ----- ----- ----- ----- ----- ----- Profit before tax on continuing operations before EI 4,110 3,556 2,754 2,383 39,205 33,921 ------------------ ----- ----- ----- ----- ----- ----- Net profit for the period 2,538 1,143 1,700 766 24,210 10,903 ------------------ ----- ----- ----- ----- ----- ----- Basic earnings per Ordinary Share USD1.44 USD0.64 GBP0.96 GBP0.43 SEK13.74 SEK6.10 Earnings per Ordinary Share pre EI USD1.76 USD1.54 GBP1.18 GBP1.03 SEK16.79 SEK14.69 ------------------ ----- ----- ----- ----- ----- ----- Dividend per Ordinary Share USD0.70 USD0.70 46.9p 46.9p SEK6.68 SEK6.68 ------------------ ----- ----- ----- ----- ----- ----- Net cash inflow from operating activities 4,183 3,113 2,803 2,086 39,902 29,695 Increase/(decrease) in cash 640 (280) 429 (188) 6,105 (2,671) ------------------ ----- ----- ----- ----- ----- ----- Shareholders' funds - equity interests 31 December 9,521 10,302 6,379 6,902 90,821 98,271 ------------------ ----- ----- ----- ----- ----- ----- Sterling (GBP) and Swedish Kronor equivalents are shown for convenience and have been calculated using the current period end rates of USD1=GBP0.6700 and USD1=SEK 9.5390, respectively. Dividend per Ordinary Share is shown as the actual amount payable using the rates at the date of declaration of the dividend. Information for US Investors RECONCILIATION TO UNITED STATES ACCOUNTING PRINCIPLES The Group profit and loss account and Group balance sheet set out on pages 10, 11 and 12 are prepared in accordance with generally accepted accounting principles in the United Kingdom (UK GAAP) which differ in certain material respects from those generally accepted in the United States (US GAAP). For the purposes of US GAAP, the merger of Astra and Zeneca was regarded as a purchase accounting acquisition of Astra by Zeneca. Under purchase accounting, the cost of the investment is calculated at the market value of the shares issued together with other incidental costs and the assets and liabilities of the acquired entity are recorded at fair value. As a result of the fair value exercise, increases in the values of Astra's tangible fixed assets and inventory were recognised and values attributed to their in-process research and development, existing products and assembled work force, together with appropriate deferred taxation effects. The difference between the cost of investment and the fair value of the assets and liabilities of Astra was recorded as goodwill. In 1999 the in-process research and development and inventory step-up were taken as a one off charge to net income and pre-acquisition results of Astra were excluded. On an ongoing basis additional amortisation and depreciation arising as a result of the fair value exercise and goodwill are charged to net income less related tax. Other differences as they apply to AstraZeneca PLC are explained in the Group's 1999 Annual Report and Form 20-F. The approximate effects on Group income and shareholders' equity of the GAAP differences are shown below. 2000 1999 Income attributable to Shareholders USDm USDm ------------------------------------ ----- ----- Net income for the period under UK GAAP 2,538 1,143 Pre-acquisition results of Astra (413) ------------------------------------ ----- 730 Adjustments to conform to US GAAP Purchase accounting adjustments, (including goodwill and intangibles): - deemed acquisition of Astra - in-process research and development - (3,315) - inventory step-up - (826) - amortisation and other acquisition adjustments (1,756) (759) - others (20) (61) Divestment of Specialties business - 284 Impairment of Salick Health Care goodwill - (308) Capitalisation, less disposals and amortisation of interest 45 5 Deferred taxation - on fair value of Astra 284 547 - others (146) 117 Pension expense (50) (103) Post-retirement benefits/plan amendment 4 4 Software costs capitalised 98 29 Restructuring costs (97) 119 Unrealised gains/(losses) on foreign exchange and others (35) (2) ------------------------------------ ----- ----- Net income/(loss) in accordance with US GAAP 865 (3,539) ------------------------------------ ----- ----- Net income/(loss) from continuing operations 907 (4,071) Net income/(loss) from discontinued operations (42) 108 Gain on disposal of Specialties business - 424 ------------------------------------ ----- ----- Net income/(loss) per Ordinary Share under US GAAP (basic) 0.49 (2.26) Net income/(loss) per Ordinary Share under US GAAP (diluted) 0.49 (2.26) ------------------------------------ ----- ----- RECONCILIATION TO UNITED STATES ACCOUNTING PRINCIPLES (CONTINUED) 31 Dec 31 Dec 2000 1999 Shareholders' equity USDm USDm ------------------------------------ ----- ----- Shareholders' equity under UK GAAP 9,521 10,302 Adjustments to conform to US GAAP Purchase accounting adjustments, (including goodwill and intangibles): - deemed acquisition of Astra - goodwill 12,610 14,202 - tangible and intangible fixed assets 9,510 11,174 - others 31 490 Capitalisation, less disposals and amortisation of interest 135 151 Deferred taxation - on fair value of Astra (2,702) (3,172) - others (278) (247) Dividend 830 834 Pension expense (129) (172) Post-retirement benefits/plan amendment (32) (31) Software costs capitalised 120 29 Restructuring costs 22 119 Others 69 56 ------------------------------------ ----- ----- Shareholders' equity in accordance with US GAAP 29,707 33,735 ------------------------------------ ----- ----- Shareholder Information ANNOUNCEMENTS AND MEETINGS ---------------------------------------------------------------------------- Annual General Meeting 26 April 2001 Announcement of first quarter results 26 April 2001 Announcement of second quarter & half year results 26 July 2001 Announcement of third quarter & nine months results 24 October 2001 DIVIDENDS ---------------------------------------------------------------------------- The record date for the second interim dividend payable on 9 April 2001 (in the UK, Sweden and the US) is 23 February 2001. Ordinary Shares will trade ex-dividend on the London and Stockholm Stock Exchanges from 21 February 2001 and ADSs will trade ex-dividend on the New York Stock Exchange from the same date. Future dividends will normally be paid as follows: First interim Announced in July and paid in late October Second interim Announced in February and paid in April TRADEMARKS ---------------------------------------------------------------------------- All product or brand names included in Note 8 of this Preliminary Announcement and the following names are trademarks of, or licensed to, AstraZeneca PLC or its subsidiary companies: Crestor Faslodex Iressa Prilosec Pulmicort Respules Rhinocort Aqua Symbicort Toprol-XL Turbuhaler Viozan Zomig Rapimelt 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 The AstraZeneca Morgan Guaranty 15 Stanhope Gate Centre Registrar Trust Company London Vardepapperscentralen Lloyds TSB of New York W1K 1LN VPC AB Registrars ADR Service Box 7822 The Causeway Center S-103 97 Stockholm Worthing PO Box 842006 Sweden West Sussex Boston BN99 6DA MA 02284-2006 Tel: (01903) Tel: (781) Tel: (020) Tel: (8) 502 541 575 4328 7304 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 Preliminary Announcement contains certain forward-looking statements about AstraZeneca. We intend to identify the forward-looking statements in this Preliminary Announcement, 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 completing the integration of Zeneca's and Astra's large and complex businesses on a timely basis and realizing 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; and exposure to US environmental liabilities. 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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