3rd Quarter Results-Part 2

AstraZeneca PLC 24 October 2002 Part 2 Consolidated Profit & Loss Account For Continuing Operations 2002 2001 For the nine months ended 30 September (Restated) $m $m Sales 13,153 12,040 Cost of sales (3,480) (3,250) Distribution costs (102) (89) Research and development (2,177) (1,955) Selling, general and administrative expenses (4,337) (3,984) Other operating income 225 304 Operating profit before exceptional items 3,282 3,066 Exceptional items charged to operating profit - (126) Operating profit 3,282 2,940 Share of joint ventures' and associates' operating profits - - Profit on sale of fixed assets - 10 Net interest and dividend income 24 101 Profit on ordinary activities before taxation 3,306 3,051 Taxation (886) (864) Profit on ordinary activities after taxation 2,420 2,187 Attributable to minorities (12) (7) Net profit for the period 2,408 2,180 Dividends to Shareholders (398) (405) Profit retained for the period 2,010 1,775 Earnings per Ordinary Share before exceptional items $1.39 $1.28 Earnings per Ordinary Share $1.39 $1.23 Diluted earnings per Ordinary Share $1.39 $1.23 Weighted average number of Ordinary Shares in issue (millions) 1,736 1,762 Diluted average number of Ordinary Shares in issue (millions) 1,739 1,764 Consolidated Profit & Loss Account For Continuing Operations 2002 2001 For the quarter ended 30 September (Restated) $m $m Sales 4,350 3,950 Cost of sales (1,181) (1,064) Distribution costs (37) (29) Research and development (757) (614) Selling, general and administrative expenses (1,468) (1,324) Other operating income 14 96 Operating profit before exceptional items 921 1,015 Exceptional items charged to operating profit - (45) Operating profit 921 970 Share of joint ventures' and associates' operating profits - - Profit on sale of fixed assets - - Net interest and dividend income 2 23 Profit on ordinary activities before taxation 923 993 Taxation (242) (280) Profit on ordinary activities after taxation 681 713 Attributable to minorities (6) (2) Net profit for the period 675 711 Dividends to Shareholders - - Profit retained for the period 675 711 Earnings per Ordinary Share before exceptional items $0.39 $0.42 Earnings per Ordinary Share $0.39 $0.40 Diluted earnings per Ordinary Share $0.39 $0.40 Weighted average number of Ordinary Shares in issue (millions) 1,728 1,757 Diluted average number of Ordinary Shares in issue (millions) 1,730 1,759 Consolidated Balance Sheet 2002 2001 As at 30 September (Restated) $m $m Fixed assets 9,023 7,929 Current assets 11,557 11,137 Total Assets 20,580 19,066 Creditors due within one year (6,916) (6,391) Net current assets 4,641 4,746 Total assets less current liabilities 13,664 12,675 Creditors due after more than one year (491) (909) Provisions for liabilities and charges (1,596) (1,795) Net assets 11,577 9,971 Capital and reserves Shareholders' funds and minority interests 11,577 9,971 Consolidated Cash Flow Statement 2002 2001 For the nine months ended 30 September $m $m Cash flow from operating activities Operating profit before exceptional items 3,282 3,066 Depreciation and amortisation 700 633 Decrease/(increase) in working capital and other non-cash movements 153 (436) Net cash inflow from operating activities before exceptional items 4,135 3,263 Outflow related to exceptional items (74) (280) Net cash inflow from operating activities 4,061 2,983 Returns on investments and servicing of finance 42 137 Tax paid (678) (631) Capital expenditure and financial investment (1,034) (990) Acquisitions and disposals - (44) Equity dividends paid to Shareholders (820) (830) Net cash inflow before management of liquid resources and financing 1,571 625 Net (purchase)/issues of shares (871) (702) Exchange and other movements 56 (51) Increase/(decrease) in net cash funds in the period 756 (128) Net cash funds at beginning of period 2,867 3,605 Net cash funds at end of period 3,623 3,477 Notes to the Interim Financial Statements 1 BASIS OF PREPARATION AND ACCOUNTING POLICIES The unaudited financial statements for the nine months ended 30 September 2002 have been prepared in accordance with UK generally accepted accounting principles. The accounting policies applied are those set out in AstraZeneca PLC's 2001 Annual Report and Form 20-F except that, in the current period, AstraZeneca adopted Financial Reporting Standard No. 19 'Deferred Tax'. Prior periods have been restated and the effects of this restatement were to reduce profits for the nine months ended 30 September 2001 by $28m and reduce net assets at that date by $164m. On adoption net assets at 1 January 2002 were reduced by $193m. The table below illustrates the effect on EPS before exceptional items of this restatement. The statements do not constitute statutory accounts of the group within the meaning of Section 240 of the Companies Act 1985. Statutory accounts for the year ended 31 December 2001 have been filed with the Registrar of Companies. The auditor's report on those accounts was unqualified and did not contain any statement under Section 237 of the Companies Act 1985. 2001 TAXATION AND EARNINGS PER SHARE BEFORE EXCEPTIONAL ITEMS Q1 2001 Q2 2001 Q3 2001 Q4 2001 Year Tax charge before adoption of FRS 19 ($m) (316) (269) (286) (282) (1,153) Tax charge after adoption of FRS 19 ($m) (315) (289) (295) (315) (1,214) Published EPS before adoption of FRS 19 ($) 0.45 . 0.42 0.43 0.47 1.77 Adjusted EPS after adoption of FRS 19 ($) 0.45 0.41 0.42 0.45 1.73 2 JOINT VENTURES AND ASSOCIATES The group's share of joint ventures' sales for the nine months to 30 September 2002 amounted to $184m and $171m for the comparative period. Share of joint ventures' operating profits for the nine months to 30 September 2002, 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 movement in net cash funds. At 1 Jan Cash Other Exchange At 30 Sept 2002 flow non-cash movements 2002 $m $m $m $m $m Loans due after 1 year (635) 14 284 - (337) Current instalments of loans (107) 41 (284) (3) (353) Total loans (742) 55 - (3) (690) Short-term investments 3,118 596 - 32 3,746 Cash 705 (11)* - 22 716 Overdrafts (195) 48* - (1) (148) Short-term borrowings, excluding overdrafts (19) 12 - 6 (1) 3,609 645 - 59 4,313 Net cash funds 2,867 700 - 56 3,623 Issue of AstraZeneca PLC Ordinary Shares (25) Repurchase of AstraZeneca PLC Ordinary Shares 896 Net cash inflow before management of liquid resources and financing 1,571 * Movement of $37m on cash and overdrafts corresponds to increase in cash during period as defined under UK GAAP. 4 LEGAL PROCEEDINGS Further to note 36 to the Financial Statements found on page 94 in the AstraZeneca 2001 Annual Report and Form 20-F wherein reference is made to various investigations into drug marketing and pricing practices in the US, the US Department of Justice has been conducting an investigation into the sales and marketing of Zoladex (goserelin acetate implant). The Company has been informed that the investigation was prompted by the filing of a qui tam complaint by a private party and involves allegations of improper submission of claims to the Medicare program. The Company is cooperating with the investigation, which is ongoing. While it is not possible to predict the outcome of the investigation, management is of the opinion that the ultimate disposition should not have a material adverse effect on AstraZeneca's financial position or results. 5 NINE MONTHS TERRITORIAL SALES ANALYSIS % Growth Nine Months Nine Months 2002 2001 Constant $m $m Actual Currency USA 6,963 6,425 8 8 Canada 423 383 10 12 North America 7,386 6,808 8 8 France 826 701 18 15 UK 486 551 (12) (13) Germany 512 511 - (3) Italy 551 457 21 18 Sweden 210 199 6 5 Europe others 1,610 1,400 15 12 Total Europe 4,195 3,819 10 7 Japan 663 591 12 19 Rest of World 909 822 11 14 Total 13,153 12,040 9 9 6 THIRD QUARTER TERRITORIAL SALES ANALYSIS % Growth 3rd 3rd Quarter Quarter 2002 2001 Constant $m $m Actual Currency USA 2,244 2,166 4 4 Canada 150 129 16 16 North America 2,394 2,295 4 4 France 289 219 32 17 UK 156 181 (14) (20) Germany 177 163 9 (3) Italy 172 120 43 26 Sweden 72 57 26 10 Europe others 524 430 22 9 Total Europe 1,390 1,170 19 6 Japan 251 202 24 23 Rest of World 315 283 11 13 Total 4,350 3,950 10 6 7 NINE MONTHS PRODUCT SALES ANALYSIS World US Nine Nine Constant Nine Months Months Actual Currency Months Actual 2002 2001 Growth Growth 2002 Growth $m $m % % $m % Gastrointestinal: Losec 3,578 4,287 (17) (17) 2,221 (22) Nexium 1,323 295 n/m n/m 1,031 n/m Others 45 30 50 50 13 - Total Gastrointestinal 4,946 4,612 7 7 3,265 7 Cardiovascular: Zestril 748 832 (10) (10) 435 (12) Seloken 652 554 18 17 445 27 Atacand 413 289 43 41 155 48 Plendil 355 332 7 6 151 13 Tenormin 275 300 (8) (6) 42 (2) Others 270 314 (14) (15) 14 (70) Total Cardiovascular 2,713 2,621 4 4 1,242 6 Respiratory: Pulmicort 580 570 2 1 246 23 Rhinocort 226 194 16 15 160 26 Symbicort 194 34 n/m n/m - - Accolate 95 115 (17) (16) 66 (20) Oxis 91 94 (3) (5) - - Others 106 116 (9) (10) - - Total Respiratory 1,292 1,123 15 14 472 15 Oncology: Zoladex 595 519 15 16 163 6 Casodex 465 393 18 18 138 (18) Nolvadex 348 446 (22) (21) 244 (27) Arimidex 242 139 74 73 105 119 Iressa 26 - n/m n/m - - Faslodex 19 - n/m n/m 19 n/m Others 15 22 (32) (32) - - Total Oncology 1,710 1,519 13 13 669 (5) CNS: Seroquel 804 526 53 53 651 49 Zomig 237 209 13 12 128 8 Others 23 16 44 44 5 - Total CNS 1,064 751 42 42 784 40 Pain, Infection and Other Pharma: Diprivan 331 329 1 2 163 10 Merrem 218 162 35 35 53 43 Local anaesthetics 311 332 (6) (5) 76 (17) Other Pharma Products 205 280 (27) (27) 59 (31) Total Pain, Infection and Other Pharma 1,065 1,103 (3) (3) 351 (3) Salick Health Care 170 144 18 18 170 18 Astra Tech 108 90 20 19 8 60 Marlow Foods 85 77 10 9 2 - Total 13,153 12,040 9 9 6,963 8 n/m not meaningful 8 THIRD QUARTER PRODUCT SALES ANALYSIS World US 3rd 3rd Constant 3rd Quarter Quarter Actual Currency Quarter Actual 2002 2001 Growth Growth 2002 Growth $m $m % % $m % Gastrointestinal: Losec 1,223 1,421 (14) (16) 798 (18) Nexium 493 168 n/m n/m 378 n/m Others 15 9 67 67 4 - Total Gastrointestinal 1,731 1,598 8 6 1,180 6 Cardiovascular: Zestril 189 188 1 (3) 84 2 Seloken 206 204 1 (2) 139 (1) Atacand 132 93 42 33 38 31 Plendil 149 120 24 20 76 33 Tenormin 85 87 (2) (5) 5 (38) Others 89 94 (5) (14) 3 (79) Total Cardiovascular 850 786 8 3 345 4 Respiratory: Pulmicort 150 161 (7) (12) 52 (10) Rhinocort 80 64 25 22 60 30 Symbicort 72 20 n/m n/m - - Accolate 28 20 40 40 19 73 Oxis 30 29 3 (7) - - Others 34 35 (3) (12) - - Total Respiratory 394 329 20 13 131 14 Oncology: Zoladex 208 175 19 14 58 12 Casodex 191 149 28 22 73 3 Nolvadex 86 160 (46) (47) 51 (59) Arimidex 96 47 104 98 42 163 Iressa 26 - n/m n/m - - Faslodex 11 - n/m n/m 11 n/m Others 4 7 (43) (43) - - Total Oncology 622 538 16 12 235 (11) CNS: Seroquel 200 169 18 16 144 5 Zomig 69 55 25 18 30 67 Others 8 13 (38) (38) 2 - Total CNS 277 237 17 14 176 12 Pain, Infection and Other Pharma: Diprivan 105 114 (8) (10) 50 (18) Merrem 76 56 36 34 20 33 Local anaesthetics 155 136 14 12 43 2 Other Pharma Products 16 55 n/m n/m 3 n/m Total Pain, Infection and Other Pharma 352 361 (2) (4) 116 (17) Salick Health Care 57 49 16 16 57 16 Astra Tech 37 28 32 18 3 50 Marlow Foods 30 24 25 17 1 - Total 4,350 3,950 10 6 2,244 4 n/m not meaningful Shareholder Information ANNOUNCEMENTS AND MEETINGS Annual Business Review 7 November 2002 Announcement of fourth quarter and full year 2002 30 January 2003 results Announcement of first quarter 2003 results 30 April 2003 Annual General Meeting 2003 30 April 2003 Announcement of second quarter and half year 2003 24 July 2003 results Announcement of third quarter 2003 results 23 October 2003 DIVIDENDS The record date for the first interim dividend paid on 7 October 2002 (in the UK, Sweden and the US) was 23 August 2002. Ordinary Shares traded ex-dividend on the London and Stockholm Stock Exchange from 21 August 2002. ADRs traded ex-dividend on the New York Stock Exchange from the same date. The record date for the second interim dividend for 2002 payable on 7 April 2003 (in the UK, Sweden and the US) will be 21 February 2003. Ordinary Shares will trade ex-dividend on the London and Stockholm Stock Exchange from 19 February 2003. 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 Atacand HCT 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 Zomig ZMT 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, 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 and exposure to environmental liability. This information is provided by RNS The company news service from the London Stock Exchange

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