3rd Qrt & 9 Mths Results-Pt.2

AstraZeneca PLC 25 October 2000 Part 2 Consolidated Profit and Loss Account Continuing Operations Discont- Total inued Oper- ations ------------------------ Oper- ations Ongoing to be Except- oper- discon- ional ations tinued items For the quarter ended 30 Sept. 2000 USDm USDm USDm USDm USDm ------------------------------------ ----- ----- ----- ----- ----- Sales 3,797 497 - - 4,294 Cost of sales (961) (301) - - (1,262) Distribution costs (48) (18) - - (66) Research and development (631) (71) (1) - (703) Selling, general and administrative expenses (1,242) (110) (42) - (1,394) Other operating income 52 12 - - 64 ------------------------------------ ----- ----- ----- ----- ----- Group operating profit 967 9 (43) - 933 Share of joint venture and associates' operating profits/(losses) (12) - - - (12) Net interest 22 - - - 22 ------------------------------------ ----- ----- ----- ----- ----- Profit on ordinary activities before taxation 977 9 (43) - 943 Taxation (287) (4) 12 - (279) ------------------------------------ ----- ----- ----- ----- ----- Profit on ordinary activities after taxation 690 5 (31) - 664 Attributable to minorities (5) - - - (5) ------------------------------------ ----- ----- ----- ----- ----- Net profit for the period 685 5 (31) - 659 Dividends to Shareholders - - - - - ------------------------------------ ----- ----- ----- ----- ----- Profit retained for the period 685 5 (31) - 659 ------------------------------------ ----- ----- ----- ----- ----- Earnings per Ordinary Share before exceptional items USD0.39 - - - USD0.39 Earnings per Ordinary Share USD0.39 - USD(0.02) - USD0.37 Diluted earnings per Ordinary Share USD0.39 - USD(0.02) - USD0.37 ------------------------------------ ----- ----- ----- ----- ----- Weighted average number of Ordinary Shares in issue (millions) 1,766 ------------------------------------ ----- Diluted average number of Ordinary Shares in issue (millions) 1,768 ------------------------------------ ----- Consolidated Profit and Loss Account Continuing Operations Discont- Total inued Oper- ations ----------------------- Oper- ations Ongoing to be Except- oper- discon- ional ations tinued items For the quarter ended 30 Sept. 1999 USDm USDm USDm USDm USDm ------------------------------------ ----- ----- ----- ----- ----- Sales 3,787 492 - 15 4,294 Cost of sales (1,145) (292) (5) (14) (1,456) Distribution costs (57) (20) - - (77) Research and development (589) (75) (12) (1) (677) Selling, general and administrative expenses (1,074) (119) (197) (4) (1,394) Other operating income 32 9 - - 41 ------------------------------------ ----- ----- ----- ----- ----- Group operating profit 954 (5) (214) (4) 731 Share of joint venture and associates' operating profits/(losses) (17) - - - (17) Profits less losses on sale and closure of operations - - - - - Merger costs - - - - - Net interest 9 - - - 9 ------------------------------------ ----- ----- ----- ----- ----- Profit on ordinary activities before taxation 946 (5) (214) (4) 723 Taxation (284) 2 44 1 (237) ------------------------------------ ----- ----- ----- ----- ----- Profit on ordinary activities after taxation 662 (3) (170) (3) 486 Attributable to minorities (1) (1) - - (2) ------------------------------------ ----- ----- ----- ----- ----- Net profit for the period 661 (4) (170) (3) 484 Dividends to Shareholders - - - - - ------------------------------------ ----- ----- ----- ----- ----- Profit/(loss) retained for the period 661 (4) (170) (3) 484 ------------------------------------ ----- ----- ----- ----- ----- Earnings per Ordinary Share before exceptional items USD0.37 - - - USD0.37 Earnings per Ordinary Share USD0.37 -USD(0.10) - USD0.27 Diluted earnings per Ordinary Share USD0.37 -USD(0.10) - USD0.27 ------------------------------------ ----- ----- ----- ----- ----- Weighted average number of Ordinary Shares in issue (millions) 1,776 ------------------------------------ ----- Diluted average number of Ordinary Shares in issue (millions) 1,780 ------------------------------------ ----- Consolidated Profit and Loss Account Continuing Operations Discont- Total inued Oper- ations ----------------------- Oper- ations Ongoing to be Except- oper- discon- ional For the nine months ended ations tinued items 30 Sept. 2000 USDm USDm USDm USDm USDm ------------------------------------ ----- ----- ----- ----- ----- Sales 11,660 2,178 - - 13,838 Cost of sales (3,045) (1,214) (3) - (4,262) Distribution costs (168) (72) - - (240) Research and development (1,842) (203) (26) - (2,071) Selling, general and administrative expenses (3,715) (370) (193) - (4,278) Other operating income 123 33 - - 156 ------------------------------------ ----- ----- ----- ----- ----- Group operating profit 3,013 352 (222) - 3,143 Share of joint venture and associates' operating profits 7 - - - 7 Net interest 56 - - - 56 ------------------------------------ ----- ----- ----- ----- ----- Profit on ordinary activities before taxation 3,076 352 (222) - 3,206 Taxation (892) (138) 43 - (987) ------------------------------------ ----- ----- ----- ----- ----- Profit on ordinary activities after taxation 2,184 214 (179) - 2,219 Attributable to minorities (10) (2) - - (12) ------------------------------------ ----- ----- ----- ----- ----- Net profit for the period 2,174 212 (179) - 2,207 Dividends to Shareholders (406) - - - (406) ------------------------------------ ----- ----- ----- ----- ----- Profit retained for the period 1,768 212 (179) - 1,801 ------------------------------------ ----- ----- ----- ----- ----- Earnings per Ordinary Share before exceptional items USD1.23 USD0.12 - - USD1.35 Earnings per Ordinary Share USD1.23 USD0.12USD(0.10) - USD1.25 Diluted earnings per Ordinary Share USD1.23 USD0.12USD(0.10) - USD1.25 ------------------------------------ ----- ----- ----- ----- ----- Weighted average number of Ordinary Shares in issue (millions) 1,769 ------------------------------------ ----- Diluted average number of Ordinary Shares in issue (millions) 1,771 ------------------------------------ ----- Consolidated Profit and Loss Account Continuing Operations Discont- Total inued Oper- ations ----------------------- Oper- ations Ongoing to be Except- oper- discon- ional For the nine months ended ations tinued items 30 Sept. 1999 USDm USDm USDm USDm USDm ------------------------------------ ----- ----- ----- ----- ----- Sales 11,218 2,104 - 630 13,952 Cost of sales (3,042) (1,163) (15) (394) (4,614) Distribution costs (173) (71) - (29) (273) Research and development (1,761) (215) (17) (44) (2,037) Selling, general and administrative expenses (3,566) (405) (324) (98) (4,393) Other operating income 98 28 - 2 128 ------------------------------------ ----- ----- ----- ----- ----- Group operating profit 2,774 278 (356) 67 2,763 Share of joint venture and associates' operating profits 4 1 - 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 2,754 279 (1,273) 305 2,065 Taxation (808) (98) 282 (121) (745) ------------------------------------ ----- ----- ----- ----- ----- Profit on ordinary activities after taxation 1,946 181 (991) 184 1,320 Attributable to minorities (2) (2) - - (4) ------------------------------------ ----- ----- ----- ----- ----- Net profit for the period 1,944 179 (991) 184 1,316 Dividends to Shareholders (408) - - - (408) ------------------------------------ ----- ----- ----- ----- ----- Profit retained for the period 1,536 179 (991) 184 908 ------------------------------------ ----- ----- ----- ----- ----- Earnings per Ordinary Share before exceptional items USD1.09 USD0.11 - USD0.02 USD1.22 Earnings per Ordinary Share USD1.09 USD0.11USD(0.56)USD0.10 USD0.74 Diluted earnings per Ordinary Share USD1.09 USD0.11USD(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 ------------------------------------ ----- Consolidated Balance Sheet 30 Sept 31 Dec 2000 1999 USDm USDm ------------------------------------ ----- ----- Fixed assets 9,281 9,902 Current assets 11,166 9,914 ------------------------------------ ----- ----- Total assets 20,447 19,816 Creditors due within one year (7,236) (7,019) ------------------------------------ ----- ----- Net current assets 3,930 2,895 ------------------------------------ ----- ----- Total assets less current liabilities 13,211 12,797 ------------------------------------ ----- ----- Creditors due after more than one year (1,169) (1,202) Provisions for liabilities and charges (1,216) (1,253) ------------------------------------ ----- ----- Net assets 10,826 10,342 ------------------------------------ ----- ----- Capital and reserves Shareholders' funds and minority interests 10,826 10,342 ------------------------------------ ----- ----- Consolidated Cash Flow Statement 2000 1999 For the nine months ended 30 September USDm USDm ------------------------------------ ----- ----- Cash flow from operating activities Operating profit before exceptional items 3,365 3,119 Depreciation and amortisation 773 781 Increase in working capital and other non-cash movements (186) (661) ------------------------------------ ----- ----- Net cash inflow from operating activities before exceptional items 3,952 3,239 Outflow related to exceptional items (623) (1,111) ------------------------------------ ----- ----- Net cash inflow from operating activities 3,329 2,128 Dividends received from joint ventures and associates - 3 Returns on investments and servicing of finance (10) (28) Tax paid (587) (685) Capital expenditure and financial investment (1,001) (2,169) Acquisitions and disposals - 1,947 Equity dividends paid to shareholders (820) (800) ------------------------------------ ----- ----- Net cash inflow before management of liquid resources and financing 911 396 Net (purchase)/issues of shares (340) 19 Exchange and other movements (159) (3) ------------------------------------ ----- ----- Increase in net cash funds in the period 412 412 Net cash funds at beginning of period 2,169 2,254 ------------------------------------ ----- ----- Net cash funds at end of period 2,581 2,666 ------------------------------------ ----- ----- 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 6 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. The unaudited results for the nine months ended 30 September 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 period under review AstraZeneca adopted Financial Reporting Standard No. 15 'Tangible Fixed Assets' (FRS15) and Financial Reporting Standard No. 16 'Current Tax' (FRS16). The adoption of FRS15 and FRS16 had no material impact on the Group's results or net assets. Continuing operations comprises principally the ongoing Healthcare operations and the Group's Agrochemicals business. The latter (excluding the Advanta joint venture) has been classified as 'Operations to be discontinued' following the announcement on 2 December 1999 to merge the business with the agrochemicals business of Novartis to form Syngenta AG. Discontinued operations comprise the Zeneca Specialties business sold on 30 June 1999. These interim financial statements do not comprise the statutory accounts of the Group. Statutory accounts for AstraZeneca PLC 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 nine months to 30 September 2000 amounted to USD185m and USD197m for the comparative period. Share of joint venture and associates' operating profits for the nine months to 30 September 2000 amounted to USD7m and nil respectively, and for the comparative period USD5m and USD1m, respectively. 3 EXCEPTIONAL ITEMS 3rd 3rd Nine Nine Quarter Quarter Months Months 2000 1999 2000 1999 Exceptional items included in the USDm USDm USDm USDm profit and loss account ------------------------------------ ----- ----- ----- ----- Integration and synergy costs (43) (202) (222) (332) Astra Pharmaceuticals L.P. restructuring costs - (12) - (24) ------------------------------------ ----- ----- ----- ----- Exceptional items included in operating profits (43) (214) (222) (356) ------------------------------------ ----- ----- ----- ----- Gain on disposal of Specialties business (after charging USD406m of goodwill previously written off to reserves) - - - 237 ------------------------------------ ----- ----- ----- ----- Profit less losses on sale and closure of operations - - - 237 ------------------------------------ ----- ----- ----- ----- Merck 'Trigger Event' payment - - - (713) Other merger costs - - - (204) ------------------------------------ ----- ----- ----- ----- Merger costs - - - (917) ------------------------------------ ----- ----- ----- ----- Total exceptional items before taxation (43) (214) (222) (1,036) Net taxation credit 12 44 43 185 ------------------------------------ ----- ----- ----- ----- (31) (170) (179) (851) ------------------------------------ ----- ----- ----- ----- 4 SEGMENT ANALYSIS 3rd 3rd Nine Nine Quarter Quarter Months Months 2000 1999 2000 1999 USDm USDm USDm USDm ------------------------------------ ----- ----- ----- ----- Sales by class of business Healthcare 3,774 3,766 11,580 11,148 Other trading 23 21 80 70 ------------------------------------ ----- ----- ----- ----- Ongoing operations 3,797 3,787 11,660 11,218 Agrochemicals (to be discontinued) 497 492 2,178 2,104 Specialties (discontinued) - 15 - 630 ------------------------------------ ----- ----- ----- ----- Group 4,294 4,294 13,838 13,952 ------------------------------------ ----- ----- ----- ----- Operating profit/(loss) before exceptional items Healthcare 975 958 3,033 2,792 Other trading (8) (4) (20) (18) ------------------------------------ ----- ----- ----- ----- Ongoing operations 967 954 3,013 2,774 Agrochemicals (to be discontinued) 9 (5) 352 278 Specialties (discontinued) - (4) - 67 ------------------------------------ ----- ----- ----- ----- Group 976 945 3,365 3,119 ------------------------------------ ----- ----- ----- ----- Operating profit/(loss) before exceptional items as a percentage of sales % % % % ------------------------------------ ----- ----- ----- ----- Healthcare 25.8 25.4 26.2 25.0 ------------------------------------ ----- ----- ----- ----- Ongoing operations 25.5 25.2 25.8 24.7 ------------------------------------ ----- ----- ----- ----- 5 PRODUCTS AND TERRITORIAL SEGMENT SALES ANALYSIS 3rd 3rd Nine Nine Quarter Quarter % Growth Months Months % Growth 2000 1999 Constant 2000 1999 Constant Healthcare USDm USDm Currency USDm USDm Currency ------------------ ----- ----- ----- ----- ----- ----- Gastrointestinal: Losec 1,565 1,539 4% 4,532 4,387 6% Nexium 4 - - 4 - - Others 12 12 - 34 36 -6% ------------------ ----- ----- ----- ----- ----- ----- Total Gastrointestinal 1,581 1,551 4% 4,570 4,423 6% ------------------ ----- ----- ----- ----- ----- ----- Cardiovascular: Zestril 299 322 -5% 960 924 6% Seloken 144 152 -2% 405 409 3% Tenormin 110 121 -7% 363 368 -1% Plendil 120 112 11% 353 328 11% Atacand 72 43 76% 196 116 80% Others 106 126 -9% 358 401 -6% ------------------ ----- ----- ----- ----- ----- ----- Total Cardiovascular 851 876 1% 2,635 2,546 7% ------------------ ----- ----- ----- ----- ----- ----- Respiratory: Pulmicort 159 169 - 512 539 1% Rhinocort 51 38 39% 165 137 25% Accolate 17 35 -48% 131 109 20% Bricanyl 28 30 - 94 103 -8% Oxis 28 22 41% 84 63 46% Others 12 12 - 38 41 - ------------------ ----- ----- ----- ----- ----- ----- Total Respiratory 295 306 2% 1,024 992 9% ------------------ ----- ----- ----- ----- ----- ----- Oncology: Zoladex 189 161 19% 553 492 13% Nolvadex 130 142 -8% 405 429 -7% Casodex 94 79 22% 314 245 31% Arimidex 35 37 - 117 100 22% Others 7 6 50% 22 18 45% ------------------ ----- ----- ----- ----- ----- ----- Total Oncology 455 425 9% 1,411 1,284 11% ------------------ ----- ----- ----- ----- ----- ----- Specialist/Hospital: Diprivan 109 137 -17% 393 464 -12% Xylocaine 58 56 6% 175 184 -4% Marcaine 22 21 15% 67 63 14% Seroquel 89 66 35% 293 161 83% Zomig 46 49 -2% 178 135 34% Merrem 44 37 22% 122 114 13% Other Products 152 169 -6% 492 536 -12% Astra Tech 27 27 7% 85 82 9% Salick Health Care 45 46 -2% 135 164 -18% ------------------ ----- ----- ----- ----- ----- ----- Total Specialist/ Hospital 592 608 - 1,940 1,903 3% ------------------ ----- ----- ----- ----- ----- ----- Total Healthcare 3,774 3,766 3% 11,580 11,148 7% ------------------ ----- ----- ----- ----- ----- ----- 5 PRODUCTS AND TERRITORIAL SEGMENT SALES ANALYSIS (CONTINUED) 3rd 3rd Nine Nine Quarter Quarter % Growth Months Months % Growth 2000 1999 Constant 2000 1999 Constant Healthcare USDm USDm Currency USDm USDm Currency ------------------ ----- ----- ----- ----- ----- ----- Territorial Analysis USA: Pharmaceuticals 1,921 1,937 -1% 5,841 5,407 8% Salick Health Care 45 46 -2% 135 164 -18% ------------------ ----- ----- ----- ----- ----- ----- Japan 207 164 16% 581 468 10% France 212 201 17% 662 624 19% Germany 175 194 18% 528 643 -7% Italy 98 121 -9% 417 438 5% Sweden 70 79 -10% 242 263 -6% UK 189 198 -2% 527 590 -7% Rest of World 857 826 8% 2,647 2,551 7% ------------------ ----- ----- ----- ----- ----- ----- Total Healthcare 3,774 3,766 3% 11,580 11,148 7% ------------------ ----- ----- ----- ----- ----- ----- Constant currency % growth has been calculated excluding the effects arising from exchange rate movements. 3rd 3rd Nine Nine Quarter Quarter % Growth Months Months % Growth 2000 1999 Constant 2000 1999 Constant Agrochemicals USDm USDm Currency USDm USDm Currency ------------------ ----- ----- ----- ----- ----- ----- Product Analysis Herbicides: Non-Selective 153 164 -4% 621 533 19% Selective 105 100 8% 555 590 -3% ------------------ ----- ----- ----- ----- ----- ----- Total Herbicides 258 264 1% 1,176 1,123 7% Insecticides 89 100 -7% 359 330 12% Fungicides 135 115 20% 592 590 5% Others 15 13 15% 51 61 -23% ------------------ ----- ----- ----- ----- ----- ----- Total Agrochemicals 497 492 4% 2,178 2,104 7% ------------------ ----- ----- ----- ----- ----- ----- Territorial Analysis North America 150 151 - 765 727 5% Europe 126 122 15% 726 755 6% Latin America 134 137 -3% 343 302 14% Asia, Africa, Australasia 87 82 8% 344 320 7% ------------------ ----- ----- ----- ----- ----- ----- Total Agrochemicals 497 492 4% 2,178 2,104 7% ------------------ ----- ----- ----- ----- ----- ----- Constant currency % growth has been calculated excluding the effects arising from exchange rate movements. Shareholder Information ANNOUNCEMENTS AND MEETINGS ---------------------------------------------------------------------------- Preliminary announcement of full year results and announcement of second interim dividend 8 February 2001 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 first interim dividend payable on 23 October 2000 (in the UK, Sweden and the US) was 8 September 2000. Ordinary Shares traded ex-dividend on the London Stock Exchange from 4 September 2000 and on the Stockholm Stock Exchange from 6 September 2000. ADSs traded ex-dividend on the New York Stock Exchange from 6 September 2000. 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 late April TRADEMARKS ---------------------------------------------------------------------------- All product or brand names included in Note 5 of this Interim Statement and the following names are trademarks of, or licensed to, AstraZeneca PLC or its subsidiary companies: Amistar Atacand Plus Gramoxone Prilosec Pulmicort Respules Rapimelt Rhinocort Aqua Symbicort Surpass Toprol-XL 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 Central Transfer Office for ADRs Securities The AstraZeneca Morgan Guaranty 15 Stanhope Gate Depositary Registrar Trust Company London VPC AB Lloyds TSB of New York W1K 1LN Box 7822 Registrars ADR Service S-103 97 Stockholm The Causeway Center Sweden Worthing PO Box 842006 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 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, exchange rate fluctuations, the risk that research and development will not yield new products that achieve commercial success, the impact of competition, price controls and price reductions, the risk of loss or expiration of patents or trade marks, difficulties of obtaining and maintaining governmental approvals for products, the risk of substantial product liability claims, exposure to environmental liability and the risks related to the difficulty of integrating Astra's and Zeneca's large and complex businesses on a timely basis and realising synergies.

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