3rd Quarter Results (2 of 2)

AstraZeneca PLC 21 October 2004 Consolidated Profit & Loss Account 2004 2003 For the nine months ended 30 September $m $m Sales 15,627 13,974 Cost of sales (3,624) (3,412) Distribution costs (132) (116) Research and development (2,840) (2,409) Selling, general and administrative expenses (5,811) (4,907) Other operating income 231 132 Operating profit 3,451 3,262 Profit on sale of interest in joint venture 219 - Net interest and dividend income 70 71 Profit on ordinary activities before taxation 3,740 3,333 Profit on ordinary activities before taxation before exceptional 3,521 3,333 items Exceptional items 219 - Taxation (884) (917) Profit on ordinary activities after taxation 2,856 2,416 Profit on ordinary activities after taxation before exceptional 2,570 2,416 items Exceptional items 286 - Attributable to minorities (11) (15) Net profit for the period 2,845 2,401 Dividends to shareholders (494) (436) Profit retained for the period 2,351 1,965 Earnings per Ordinary Share before exceptional items $1.52 $1.40 Earnings per Ordinary Share $1.69 $1.40 Diluted earnings per Ordinary Share $1.69 $1.40 Weighted average number of Ordinary Shares in issue (millions) 1,679 1,713 Diluted average number of Ordinary Shares in issue (millions) 1,681 1,714 Statement of Total Recognised Gains & Losses 2004 2003 For the nine months ended 30 September $m $m Net profit for the period 2,845 2,401 Exchange adjustments on net assets (117) 823 Tax on foreign exchange adjustments 357 41 Total recognised gains and losses relating to the period 3,085 3,265 Consolidated Profit & Loss Account 2004 2003 For the quarter ended 30 September $m $m Sales 5,265 4,803 Cost of sales (1,259) (1,175) Distribution costs (46) (41) Research and development (917) (812) Selling, general and administrative expenses (1,843) (1,744) Other operating income 61 70 Operating profit 1,261 1,101 Profit on sale of interest in joint venture 219 - Net interest and dividend income 13 18 Profit on ordinary activities before taxation 1,493 1,119 Profit on ordinary activities before taxation before exceptional 1,274 1,119 items Exceptional items 219 - Taxation (278) (308) Profit on ordinary activities after taxation 1,215 811 Profit on ordinary activities after taxation before exceptional 929 811 items Exceptional items 286 - Attributable to minorities (4) (8) Net profit for the period 1,211 803 Dividends to shareholders - - Profit retained for the period 1,211 803 Earnings per Ordinary Share before exceptional items $0.55 $0.47 Earnings per Ordinary Share $0.72 $0.47 Diluted earnings per Ordinary Share $0.72 $0.47 Weighted average number of Ordinary Shares in issue (millions) 1,669 1,710 Diluted average number of Ordinary Shares in issue (millions) 1,671 1,711 Consolidated Balance Sheet 2004 2003 As at 30 September $m $m Fixed assets 10,474 10,058 Current assets 14,043 12,996 Total assets 24,517 23,054 Creditors due within one year (6,926) (7,095) Net current assets 7,117 5,901 Total assets less current liabilities 17,591 15,959 Creditors due after more than one year (1,092) (348) Provisions for liabilities and charges (2,115) (2,046) Net assets 14,384 13,565 Capital and reserves Shareholders' funds and minority interests 14,384 13,565 Consolidated Cash Flow Statement 2004 2003 For the nine months ended 30 September $m $m Cash flow from operating activities Operating profit 3,451 3,262 Depreciation and amortisation 915 900 Increase in working capital and other non-cash movements (561) (630) Net cash inflow from operating activities before exceptional items 3,805 3,532 Outflow related to exceptional items (8) (387) Net cash inflow from operating activities 3,797 3,145 Returns on investments and servicing of finance 76 49 Tax paid (1,011) (1,007) Capital expenditure and financial investment (917) (1,002) Acquisitions and disposals 308 80 Equity dividends paid to shareholders (1,378) (770) Net cash inflow before management of liquid resources and financing 875 495 Net purchase of shares (1,475) (501) Exchange and other movements (7) 65 (Decrease)/increase in net cash funds in the period (607) 59 Net cash funds at beginning of period 3,496 3,844 Net cash funds at end of period 2,889 3,903 Notes to the Interim Financial Statements 1 BASIS OF PREPARATION AND ACCOUNTING POLICIES The unaudited financial statements for the nine months ended 30 September 2004 have been prepared in accordance with UK generally accepted accounting principles (UK GAAP). The accounting policies applied are those set out in AstraZeneca PLC's Annual Report and Form 20-F Information 2003, except that, during the period, the Company adopted UITF No. 38 'Accounting for ESOP Trusts'. This adoption had no effect on net profit or shareholders' funds. The information contained in Note 4 below updates the disclosures concerning legal proceedings in the Company's Annual Report and Form 20-F Information 2003 and Half Year Results 2004. 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 2003 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. 2 International Accounting AstraZeneca's first results reported under International Accounting Standards and International Financial Reporting Standards (IAS/IFRS) will be the interim results for Q1 2005. On Monday, 25 October 2004, the Company will publish financial information in respect of 2003 and the first six months of 2004 under IAS/IFRS. The information to be published includes the accounting policies AstraZeneca will adopt under IAS/IFRS, the primary financial statements, a reconciliation to UK GAAP and a commentary to explain the changes. A conference call will be held on Monday, 25 October at 13:00 BST to discuss the re-statements. 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 2004 flow non-cash movements 2004 $m $m $m $m $m Loans due after 1 year (303) (734) - (1) (1,038) Current instalments of loans - - - - - Total loans (303) (734) - (1) (1,038) Short-term investments 3,218 219 - (2) 3,435 Cash 733 (67) - (4) 662 Overdrafts (152) (16) - - (168) Short-term borrowings - (2) - - (2) 3,799 134 - (6) 3,927 Net cash funds 3,496 (600) - (7) 2,889 Issue of AstraZeneca PLC Ordinary Shares (75) Repurchase of AstraZeneca PLC Ordinary Shares 1,550 Net cash inflow before management of liquid resources and financing 875 4 LEGAL PROCEEDINGS AstraZeneca is involved in various legal proceedings considered typical to its business, including litigation relating to employment matters, product liability, commercial disputes, infringement of intellectual property rights and the validity of certain patents. The matters discussed below constitute the more significant developments since publication of the disclosures concerning legal proceedings in the Company's Annual Report and Form 20-F Information 2003 and Half Year Results 2004. Losec(TM)/Prilosec(TM) (omeprazole) As disclosed in the Company's Annual Report and Form 20-F Information 2003, AstraZeneca has been involved in proceedings in Canada involving Apotex which relate to omeprazole capsules or omeprazole magnesium tablets and involve various patents. Following the launch by Apotex of a generic omeprazole capsule product in April 2004, AstraZeneca launched judicial review proceedings seeking to quash Apotex's Notice of Compliance (marketing approval). In September 2004, the case was decided against AstraZeneca. AstraZeneca has appealed the decision. Plendil(TM) (felodipine) In September 2004, the US Court of Appeals for the Federal Circuit issued a decision in AstraZeneca's patent infringement action against Mutual Pharmaceutical Co., Inc. commenced in 2000. As disclosed in the Company's Annual Report and Form 20-F Information 2003, Mutual had appealed against decisions of the US District Court for the Eastern District of Pennsylvania which granted summary judgement to AstraZeneca as to both AstraZeneca's infringement and validity claims in respect of its patent covering the extended release formulation of Plendil(TM) (felodipine) tablets. In September 2004, the Federal Circuit Court reversed the ruling by the District Court as to infringement and held that Mutual's extended release felodipine tablets as a matter of law do not infringe AstraZeneca's formulation patent. However, the Federal Circuit Court upheld the District Court's decision as to validity, ruling that AstraZeneca's formulation patent is valid as a matter of law. In August 2004, the US District Court for the District of New Jersey issued an order dismissing the patent infringement action brought by AstraZeneca Pharmaceuticals LP against Zenith Goldline Pharmaceuticals Inc. (now known as IVAX Pharmaceuticals, Inc.). The patent infringement action against Zenith/ IVAX, which AstraZeneca filed in July 2001, resulted from a May 2001 letter to AstraZeneca wherein Zenith/IVAX declared its intention to market a generic version of AstraZeneca's Plendil(TM) extended release tablets (felodipine) prior to the expiration of AstraZeneca's patent covering the extended release formulation. Zenith/IVAX filed counterclaims in the litigation alleging non-infringement. The District Court's August 2004 order dismissed the case, without prejudice, pending the consummation of a settlement of the matter and granting the parties the right upon motion and good cause shown, to re-open the legal action if the settlement is not consummated within 60 days of the date of the order. The parties are jointly proposing, to the District Court, that the 60 day period be extended by 30 days. Toprol-XL(TM) (metoprolol succinate) In July 2004, AstraZeneca filed proceedings against Andrx Pharmaceuticals in the US District Court for the District of Delaware following Andrx's notification that it had filed an abbreviated new drug application with the US Food and Drug Administration seeking approval to market a generic form of Toprol-XL(TM) in the 25mg dose. In August 2004, AstraZeneca filed proceedings against KV Pharmaceutical Company in the US District Court for the Eastern District of Missouri following KV's notification that it had filed an abbreviated new drug application with the US Food and Drug Administration seeking approval to market a generic form of Toprol-XL(TM) in the 50mg dose. AstraZeneca maintains that its patents are valid and infringed by these Andrx and KV products. All of the patent litigation related to Toprol-XL(TM) against Andrx, KV and Eon Labs Manufacturing Inc. (the Eon proceedings having been disclosed in the Company's Half Year Results 2004) has been consolidated for pre-trial discovery purposes and motion practice in the US District Court for the Eastern District of Missouri. These aspects of the proceedings will continue in the first half of 2005. No trial date has yet been scheduled in the consolidated proceedings. Drug Importation Anti-trust Litigation In the Company's Half Year Results 2004, AstraZeneca disclosed pending, purported class action proceedings in Minnesota in which the plaintiffs allege that AstraZeneca Pharmaceuticals LP and eight other pharmaceutical manufacturer defendants conspired to prevent American consumers from purchasing prescription drugs from Canada, 'depriving consumers of the ability to purchase' drugs at competitive prices. The plaintiffs seek injunctive relief, restitution and other remedies. In August 2004, Californian retail pharmacy plaintiffs filed an action in the Superior Court of California making similar allegations. Government Investigations into Drug Marketing Practices In October 2004, AstraZeneca received an additional subpoena from the US Attorney's Office in Boston, Massachusetts seeking documents relating to interactions with physicians at a large, regional clinic and affiliated entities in north eastern Massachusetts. On October 15, AstraZeneca was informed that it was going to receive a subpoena from the US Attorney's Office for the Eastern District of Pennsylvania seeking documents relating to the formulary status of Prilosec(TM) and Nexium(TM) at a regional Health Maintenance Organization (HMO) and a national Pharmacy Benefits Manager (PBM). AstraZeneca intends to cooperate fully with these document requests. General With respect to each of the legal proceedings described above, we are unable to make estimates of the loss or range of losses at this stage. We also do not believe that disclosure of the amount sought by plaintiffs, if that is known, would be meaningful with respect to those legal proceedings. 5 NINE MONTHS TERRITORIAL SALES ANALYSIS % Growth Nine Months Nine Months 2004 2003 Constant $m $m Actual Currency US 6,974 6,703 4 4 Canada 651 519 25 14 North America 7,625 7,222 6 5 France 1,208 1,058 14 - UK 432 394 10 (2) Germany 717 623 15 2 Italy 809 680 19 5 Sweden 222 229 (3) (14) Europe others 2,273 1,879 21 9 Total Europe 5,661 4,863 16 3 Japan 1,018 833 22 9 Rest of World 1,323 1,056 25 17 Total 15,627 13,974 12 6 6 THIRD QUARTER TERRITORIAL SALES ANALYSIS % Growth 3rd Quarter 3rd Quarter 2004 2003 Constant Actual $m $m Currency US 2,407 2,271 6 6 Canada 202 189 7 7 North America 2,609 2,460 6 6 France 361 370 (2) (6) UK 151 120 26 15 Germany 250 233 7 2 Italy 266 230 16 11 Sweden 69 77 (10) (14) Europe others 761 632 20 15 Total Europe 1,858 1,662 12 7 Japan 352 297 19 9 Rest of World 446 384 16 15 Total 5,265 4,803 10 7 7 NINE MONTHS PRODUCT SALES ANALYSIS World US Nine Nine Constant Nine Months Months Actual Currency Months Actual 2004 2003 Growth Growth 2004 Growth $m $m % % $m % Gastrointestinal: Losec 1,501 2,037 (26) (32) 287 (63) Nexium 2,777 2,466 13 10 1,931 2 Others 64 53 21 13 22 22 Total Gastrointestinal 4,342 4,556 (5) (10) 2,240 (17) Cardiovascular: Zestril 327 342 (4) (12) 48 (26) Seloken 1,006 1,034 (3) (5) 708 (7) Atacand 639 543 18 10 189 (4) Plendil 361 383 (6) (10) 140 (10) Tenormin 271 246 10 1 26 86 Crestor 596 88 n/m n/m 347 n/m Others 256 284 (10) (18) 12 (8) Total Cardiovascular 3,456 2,920 18 12 1,470 16 Respiratory: Pulmicort 737 674 9 4 388 11 Rhinocort 268 272 (1) (4) 192 (5) Symbicort 578 377 53 37 - - Accolate 84 76 11 8 60 22 Oxis 76 91 (16) (25) - - Others 118 110 7 (2) - - Total Respiratory 1,861 1,600 16 8 640 7 Oncology: Zoladex 675 630 7 (1) 118 (8) Casodex 736 647 14 5 169 (10) Nolvadex 99 138 (28) (35) 2 (95) Arimidex 578 372 55 45 217 42 Iressa 309 136 127 117 159 194 Faslodex 73 56 30 28 62 13 Others 11 14 (21) (28) - - Total Oncology 2,481 1,993 24 15 727 18 Neuroscience: Seroquel 1,465 1,059 38 35 1,092 37 Zomig 267 245 9 2 112 2 Diprivan 374 339 10 5 201 18 Local anaesthetics 398 344 16 7 94 11 Others 54 54 - (9) 15 15 Total Neuroscience 2,558 2,041 25 20 1,514 29 Infection and Other: Merrem 310 242 28 20 54 35 Other Products 207 229 (10) (16) 90 (9) Total Infection and Other 517 471 10 3 144 4 Salick Health Care 226 200 13 13 226 13 Astra Tech 186 144 29 16 13 18 Marlow Foods - 49 n/m n/m - n/m Total 15,627 13,974 12 6 6,974 4 n/m not meaningful 8 THIRD QUARTER PRODUCT SALES ANALYSIS World US 3rd 3rd Constant 3rd Quarter Quarter Actual Currency Quarter Actual 2004 2003 Growth Growth 2004 Growth $m $m % % $m % Gastrointestinal: Losec 430 631 (32) (34) 79 (62) Nexium 951 1,000 (5) (6) 651 (17) Others 26 18 44 44 11 57 Total Gastrointestinal 1,407 1,649 (15) (17) 741 (26) Cardiovascular: Zestril 105 116 (9) (12) 17 (23) Seloken 353 286 23 22 255 35 Atacand 214 185 16 13 64 7 Plendil 102 144 (29) (30) 34 (49) Tenormin 93 81 15 10 11 n/m Crestor 260 76 n/m n/m 162 n/m Others 81 96 (16) (19) 3 (25) Total Cardiovascular 1,208 984 23 20 546 37 Respiratory: Pulmicort 211 184 15 12 108 24 Rhinocort 87 86 1 - 65 (2) Symbicort 185 128 45 39 - - Accolate 31 20 55 55 24 118 Oxis 25 31 (19) (22) - - Others 35 36 (3) (6) - - Total Respiratory 574 485 18 15 197 20 Oncology: Zoladex 236 224 5 1 25 (41) Casodex 258 230 12 7 62 13 Nolvadex 30 38 (21) (26) - n/m Arimidex 221 136 63 58 87 67 Iressa 113 70 61 57 59 64 Faslodex 24 19 26 26 19 6 Others 3 5 (40) (40) - - Total Oncology 885 722 23 18 252 21 Neuroscience: Seroquel 529 345 53 51 398 59 Zomig 81 83 (2) (4) 29 (9) Diprivan 126 105 20 18 73 55 Local anaesthetics 128 121 6 4 34 6 Others 16 17 (6) (12) 5 67 Total Neuroscience 880 671 31 29 539 48 Infection and Other: Merrem 101 88 15 13 18 20 Other Products 71 88 (19) (22) 31 (38) Total Infection and Other 172 176 (2) (5) 49 (25) Salick Health Care 78 66 18 18 78 18 Astra Tech 61 50 22 16 5 25 Marlow Foods - - - - - - Total 5,265 4,803 10 7 2,407 6 n/m not meaningful Shareholder Information ANNOUNCEMENTS AND MEETINGS Announcement of fourth quarter and full year 2004 27 January 2005 results Announcement of first quarter 2005 results 28 April 2005 Annual General Meeting 2005 28 April 2005 Announcement of second quarter and half year 2005 28 July 2005 results Announcement of third quarter 2005 results 27 October 2005 DIVIDENDS The record date for the first interim dividend paid on 20 September 2004 (in the UK, Sweden and the US) was 13 August 2004. Ordinary Shares traded ex-dividend on the London and Stockholm Stock Exchanges from 11 August 2004. ADRs traded ex-dividend on the New York Stock Exchange from the same date. The record date for the second interim dividend for 2004 payable on 21 March 2005 (in the UK, Sweden and the US) will be 11 February 2005. Ordinary Shares will trade ex-dividend on the London and Stockholm Stock Exchanges from 9 February 2005. ADRs will trade ex-dividend on the New York Stock Exchange from the same date. The accelerated payment of the second interim dividend for 2004 in March 2005 instead of April payment, as was previous practice, will result in the Company making three dividend payments to shareholders in the UK 2004/2005 tax year. Future dividends will normally be paid as follows: First interim Announced in July and paid in September Second interim Announced in January and paid in March 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 Merrem Nexium Nolvadex Oxis Plendil Prilosec Pulmicort Pulmicort Respules Rhinocort Rhinocort Aqua Seloken Seroquel Symbicort Tenormin Toprol-XL 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 UK 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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