3rd Quarter Results -Part 2/2
AstraZeneca PLC
23 October 2003
Consolidated Profit & Loss Account
For the nine months ended 30 September 2003 2002
$m $m
Sales 13,974 12,940
Cost of sales (3,412) (3,267)
Distribution costs (116) (102)
Research and development (2,409) (2,177)
Selling, general and administrative expenses (4,907) (4,337)
Other operating income 132 225
Operating profit 3,262 3,282
Net interest and dividend income 71 24
Profit on ordinary activities before taxation 3,333 3,306
Taxation (917) (886)
Profit on ordinary activities after taxation 2,416 2,420
Attributable to minorities (15) (12)
Net profit for the period 2,401 2,408
Dividends to shareholders (436) (398)
Profit retained for the period 1,965 2,010
Earnings per Ordinary Share $1.40 $1.39
Diluted earnings per Ordinary Share $1.40 $1.39
Weighted average number of Ordinary Shares in issue (millions) 1,713 1,736
Diluted average number of Ordinary Shares in issue (millions) 1,714 1,739
Consolidated Profit & Loss Account
For the quarter ended 30 September 2003 2002
$m $m
Sales 4,803 4,282
Cost of sales (1,175) (1,113)
Distribution costs (41) (37)
Research and development (812) (757)
Selling, general and administrative expenses (1,744) (1,468)
Other operating income 70 14
Operating profit 1,101 921
Net interest and dividend income 18 2
Profit on ordinary activities before taxation 1,119 923
Taxation (308) (242)
Profit on ordinary activities after taxation 811 681
Attributable to minorities (8) (6)
Net profit for the period 803 675
Dividends to shareholders - -
Profit retained for the period 803 675
Earnings per Ordinary Share $0.47 $0.39
Diluted earnings per Ordinary Share $0.47 $0.39
Weighted average number of Ordinary Shares in issue (millions) 1,710 1,728
Diluted average number of Ordinary Shares in issue (millions) 1,711 1,730
Consolidated Balance Sheet
2003 2002
As at 30 September $m $m
Fixed assets 10,058 9,023
Current assets 12,996 11,557
Total assets 23,054 20,580
Creditors due within one year (7,095) (6,916)
Net current assets 5,901 4,641
Total assets less current liabilities 15,959 13,664
Creditors due after more than one year (348) (491)
Provisions for liabilities and charges (2,046) (1,596)
Net assets 13,565 11,577
Capital and reserves
Shareholders' funds and minority interests 13,565 11,577
Consolidated Cash Flow Statement
2003 2002
For the nine months ended 30 September $m $m
Cash flow from operating activities
Operating profit 3,262 3,282
Depreciation and amortisation 900 700
(Increase)/decrease in working capital and other non-cash
movements (630) 153
Net cash inflow from operating activities before exceptional
items 3,532 4,135
Outflow related to exceptional items (387) (74)
Net cash inflow from operating activities 3,145 4,061
Returns on investments and servicing of finance 49 42
Tax paid (1,007) (678)
Capital expenditure and financial investment (1,002) (1,034)
Acquisitions and disposals 80 -
Equity dividends paid to shareholders (770) (820)
Net cash inflow before management of liquid resources and
financing 495 1,571
Net purchase of shares (501) (871)
Exchange and other movements 65 56
Increase in net cash funds in the period 59 756
Net cash funds at beginning of period 3,844 2,867
Net cash funds at end of period 3,903 3,623
Notes to the Interim Financial Statements
1 BASIS OF PREPARATION AND ACCOUNTING POLICIES
The unaudited financial statements for the nine months ended 30 September 2003
have been prepared in accordance with UK generally accepted accounting
principles. The accounting policies applied are those set out in AstraZeneca
PLC's 2002 Annual Report and Form 20-F.
These interim financial statements do not constitute statutory accounts of the
group within the meaning of Section 240 of the Companies Act 1985. Statutory
accounts for the year ended 31 December 2002 have been filed with the Registrar
of Companies. The auditor's report on those accounts was unqualified and did
not contain any statement under Section 237 of the Companies Act 1985.
As part of AstraZeneca's objective to align with best accounting practice, cash
discounts arising from prompt payments of invoices were reclassified from cost
of sales to sales for the year ended 31 December 2002. Comparatives were
reclassified and additional detail at product and territorial level are
available on the AstraZeneca website. Both sales and cost of sales were reduced
by $213m in the first nine months of 2002. Neither profits nor assets were
affected.
2 JOINT VENTURES AND ASSOCIATES
The group's share of joint ventures' sales for the nine months to 30 September
2003 amounted to $189m and $184m for the comparative period. Share of joint
ventures' operating profits for the nine months to 30 September 2003 and for the
comparative period, were $nil.
3 NET CASH FUNDS
The table below provides an analysis of net cash funds and a reconciliation of
net cash flow to the movement in net cash funds.
At 1 Jan Cash Other Exchange At 30 Sept
2003 flow non-cash movements 2003
$m $m $m $m $m
Loans due after 1 year (328) 18 - 6 (304)
Current instalments of loans (314) 319 - (5) -
Total loans (642) 337 - 1 (304)
Short-term investments 3,962 (490) - 38 3,510
Cash 726 28 - 28 782
Overdrafts (202) 119 - (2) (85)
4,486 (343) - 64 4,207
Net cash funds 3,844 (6) - 65 3,903
Issue of AstraZeneca PLC Ordinary
Shares (31)
Repurchase of AstraZeneca PLC
Ordinary Shares 532
Net cash inflow before management
of liquid resources and financing 495
4 NINE MONTHS TERRITORIAL SALES ANALYSIS
% Growth
Nine Months Nine Months
2003 2002 Constant
$m $m Actual Currency
USA 6,703 6,787 (1) (1)
Canada 519 423 23 15
North America 7,222 7,210 - (1)
France 1,058 820 29 9
UK 394 476 (17) (25)
Germany 623 503 24 5
Italy 680 551 23 4
Sweden 229 210 9 (8)
Europe others 1,879 1,607 17 1
Total Europe 4,863 4,167 17 -
Japan 833 663 26 18
Rest of World 1,056 900 17 18
Total 13,974 12,940 8 2
5 THIRD QUARTER TERRITORIAL SALES ANALYSIS
% Growth
3rd 3rd
Quarter Quarter
2003 2002 Constant
$m $m Actual Currency
USA 2,271 2,190 4 4
Canada 189 150 26 12
North America 2,460 2,340 5 4
France 370 287 29 8
UK 120 151 (21) (29)
Germany 233 174 34 12
Italy 230 172 34 12
Sweden 77 72 7 (10)
Europe others 632 523 21 5
Total Europe 1,662 1,379 21 3
Japan 297 251 18 14
Rest of World 384 312 23 17
Total 4,803 4,282 12 5
6 NINE MONTHS PRODUCT SALES ANALYSIS
World US
Nine Nine Constant Nine
Months Months Actual Currency Months Actual
2003 2002 Growth Growth 2003 Growth
$m $m % % $m %
Gastrointestinal:
Losec 2,037 3,508 (42) (46) 785 (64)
Nexium 2,466 1,292 91 86 1,892 88
Others 53 45 18 9 18 38
Total Gastrointestinal 4,556 4,845 (6) (10) 2,695 (15)
Cardiovascular:
Zestril 342 733 (53) (58) 65 (85)
Seloken 1,034 638 62 58 765 76
Atacand 543 409 33 23 197 30
Plendil 383 350 9 4 156 7
Tenormin 246 275 (11) (17) 14 (67)
Crestor 88 - n/m n/m 56 n/m
Others 284 270 5 (7) 13 (7)
Total Cardiovascular 2,920 2,675 9 2 1,266 5
Respiratory:
Pulmicort 674 575 17 10 348 44
Rhinocort 272 223 22 19 202 29
Symbicort 377 194 94 69 - -
Accolate 76 92 (17) (19) 49 (22)
Oxis 91 91 - (12) - -
Others 110 106 4 (7) - -
Total Respiratory 1,600 1,281 25 16 599 30
Oncology:
Zoladex 630 588 7 (1) 128 (18)
Casodex 647 460 41 30 187 40
Nolvadex 138 342 (60) (62) 40 (83)
Arimidex 372 239 56 46 153 50
Iressa 136 26 n/m n/m 54 n/m
Faslodex 56 19 195 195 55 189
Others 14 14 - (7) - -
Total Oncology 1,993 1,688 18 10 617 (5)
CNS:
Seroquel 1,059 788 34 31 796 25
Zomig 245 234 5 (2) 110 (12)
Others 20 23 (13) (26) - n/m
Total CNS 1,324 1,045 27 23 906 18
Pain, Infection and Other
Pharma:
Diprivan 339 326 4 (1) 170 8
Merrem 242 216 12 8 40 (22)
Local anaesthetics 344 311 11 4 83 9
Other Pharma Products 263 190 38 29 114 100
Total Pain, Infection and Other
Pharma 1,188 1,043 14 8 407 19
Salick Health Care 200 170 18 18 200 18
Astra Tech 144 108 33 13 11 38
Marlow Foods 49 85 (42) (47) 2 -
Total 13,974 12,940 8 2 6,703 (1)
n/m not meaningful
Other Pharma Products include contract manufacturing for Prilosec OTC
7 THIRD QUARTER PRODUCT SALES ANALYSIS
World US
3rd 3rd Constant 3rd
Quarter Quarter Actual Currency Quarter Actual
2003 2002 Growth Growth 2003 Growth
$m $m % % $m %
Gastrointestinal:
Losec 631 1,200 (47) (52) 206 (74)
Nexium 1,000 481 108 102 786 114
Others 18 15 20 13 7 75
Total Gastrointestinal 1,649 1,696 (3) (8) 999 (13)
Cardiovascular:
Zestril 116 187 (38) (44) 22 (73)
Seloken 286 201 42 37 189 39
Atacand 185 131 41 29 60 62
Plendil 144 147 (2) (7) 67 (9)
Tenormin 81 85 (5) (12) 1 (80)
Crestor 76 - n/m n/m 56 -
Others 96 89 8 (5) 4 33
Total Cardiovascular 984 840 17 9 399 18
Respiratory:
Pulmicort 184 149 23 14 87 71
Rhinocort 86 79 9 6 66 12
Symbicort 128 72 78 54 - -
Accolate 20 27 (26) (30) 11 (39)
Oxis 31 30 3 (10) - -
Others 36 34 6 (6) - -
Total Respiratory 485 391 24 14 164 28
Oncology:
Zoladex 224 206 9 - 44 (21)
Casodex 230 189 22 12 55 (23)
Nolvadex 38 85 (55) (59) 4 (92)
Arimidex 136 95 43 32 52 27
Iressa 70 26 169 165 36 n/m
Faslodex 19 11 73 73 18 64
Others 5 3 67 67 - -
Total Oncology 722 615 17 9 209 (9)
CNS:
Seroquel 345 196 76 71 251 79
Zomig 83 68 22 12 32 10
Others 5 8 (38) (51) (2) n/m
Total CNS 433 272 59 52 281 64
Pain, Infection and Other
Pharma:
Diprivan 105 104 1 (5) 47 (4)
Merrem 88 75 17 9 15 (21)
Local anaesthetics 121 155 (22) (28) 32 (26)
Other Pharma Products 100 10 n/m n/m 55 n/m
Total Pain, Infection and Other
Pharma 414 344 20 12 149 32
Salick Health Care 66 57 16 16 66 16
Astra Tech 50 37 35 16 4 33
Marlow Foods - 30 n/m n/m - n/m
Total 4,803 4,282 12 5 2,271 4
n/m not meaningful
Other Pharma Products include contract manufacturing for Prilosec OTC
Shareholder Information
ANNOUNCEMENTS AND MEETINGS
Announcement of fourth quarter and full year 2003 results 29 January 2004
Announcement of first quarter 2004 results 29 April 2004
Annual General Meeting 2004 29 April 2004
Announcement of second quarter and half year 2004 results 22 July 2004
Announcement of third quarter 2004 results 21 October 2004
DIVIDENDS
The record date for the first interim dividend paid on 6 October 2003 (in the
UK, Sweden and the US) was 22 August 2003. Ordinary Shares traded ex-dividend
on the London and Stockholm Stock Exchanges from 20 August 2003. ADRs traded
ex-dividend on the New York Stock Exchange from the same date.
The record date for the second interim dividend for 2003 payable on 6 April 2004
(in the UK, Sweden and the US) will be 20 February 2004. Ordinary Shares will
trade ex-dividend on the London and Stockholm Stock Exchanges from 18 February
2004. ADRs 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 October
Second interim Announced in January and paid in April
TRADEMARKS
The following brand names used in this interim report are trade marks of the
AstraZeneca group of companies:
Accolate Arimidex Astra Tech Atacand Casodex Crestor Diprivan Exanta
Faslodex Iressa Losec Marcaine Merrem Nexium Nolvadex Oxis Plendil
Prilosec Pulmicort Pulmicort Respules Pulmicort Turbuhaler Rhinocort Rhinocort
Aqua Seloken Seroquel Symbicort Tenormin Toprol-XL Xylocaine Zestril
Zoladex Zomig
ADDRESSES FOR CORRESPONDENCE
Registrar and Depositary Registered Office Swedish Securities Register Centre
Transfer Office for ADRs VPC AB
The AstraZeneca Registrar JPMorgan Chase Bank 15 Stanhope Gate PO Box 7822
Lloyds TSB Registrars PO Box 43013 London S-103 97 Stockholm
The Causeway Providence W1K 1LN Sweden
Worthing RI 02940-3013 UK
West Sussex US
BN99 6DA
Tel: +44 (0)121 433 8000 Tel: +1 (781) 575 4328 Tel: +44 (0)20 7304 5000 Tel: +46 (0)8 402 9000
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
In order to utilise the 'Safe Harbor' provisions of the United States Private
Securities Litigation Reform Act of 1995, AstraZeneca is providing the following
cautionary statement. This Interim Report contains forward-looking statements
with respect to the financial condition, results of operations and businesses of
AstraZeneca. By their nature, forward-looking statements and forecasts involve
risk and uncertainty because they relate to events and depend on circumstances
that will occur in the future. There are a number of factors that could cause
actual results and developments to differ materially from that expressed or
implied by these forward-looking statements. These factors include, among other
things, the loss or expiration of patents, marketing exclusivity or trade marks;
exchange rate fluctuations; the risk that R&D will not yield new products that
achieve commercial success; the impact of competition; price controls and price
reductions; taxation risks; the risk of substantial product liability claims;
the impact of any failure by third parties to supply materials or services; the
risk of delay to new product launches; the difficulties of obtaining and
maintaining governmental approvals for products; and the risk of environmental
liabilities.
This information is provided by RNS
The company news service from the London Stock Exchange
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