4th Quarter & Final Results - Part 3

AstraZeneca PLC 24 February 2000 PART 3 Notes to the Preliminary Announcement 1 BASIS OF PREPARATION AND ACCOUNTING POLICIES This preliminary announcement has 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. Profit and loss account, balance sheet and cash flow comparatives are restated on the combined basis. Following completion of the merger, AstraZeneca PLC's share capital has been redenominated from sterling into US dollars and AstraZeneca has elected to report its results in US dollars. Convenience translations of key information into sterling and Swedish kronor are provided on page 25. The results for the year ended 31 December 1999 have been prepared in accordance with UK generally accepted accounting principles. The accounting policies applied are those set out in AstraZeneca PLC's (formerly Zeneca Group PLC) 1998 Annual Report and Form 20-F, except that during the current period AstraZeneca adopted Financial Reporting Standard No. 12 'Provisions, Contingent Liabilities and Contingent Assets' (FRS 12). The adoption of FRS 12 had no impact on the group's net assets at 1 January 1999. The results for the year ended 1999 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 1999 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 1998 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 BASIS OF 1998 PRO FORMA FIGURES In addition to presenting the comparative information for 1998 on a statutory basis, pro forma profit and loss and pro forma sales information have been provided. The unaudited pro forma profit and loss figures for 1998 reflect two adjustments to the statutory figures to illustrate the effect on the sales and profits as if the Astra Merck Restructuring and the merger related payments to Merck had occurred at the beginning of 1998 (rather than July 1998 and April 1999 respectively). The pro forma figures incorporate sales of USD1,715m for 1998 related to the Astra Merck joint venture which are excluded from the statutory consolidation. Changes in the cost base which arise from the Astra Merck Restructuring have also been back dated to 1 January 1998. The net effect of these pro forma adjustments is to reduce 1998 reported profits by USD55m, before tax relief of USD23m. A pro forma amortisation cost of USD12m per quarter and notional interest cost of USD21m per quarter on the payments due to Merck on completion of the merger have also been provided for 1998. These charges are offset by tax relief of USD6m per quarter. Pro forma adjustments of this size would also apply to quarter one 1999, but because of their immaterial amount, in the context of the year as a whole, no pro forma figures have been presented for 1999. Further details on the basis of the pro forma adjustments are included in the Merger Document and AstraZeneca's Circular to Shareholders relating to the merger, both dated 21 January 1999, and in AstraZeneca's Registration Statement on Form F-4 filed with the US Securities and Exchange Commission. 3 JOINT VENTURES AND ASSOCIATES The group's share of joint ventures' sales for the year ended 31 December 1999 amounted to USD208m and USD1,080m for the comparative period. Share of joint ventures' and associates' operating (loss)/profits for the year to 31 December 1999 amounted to (USD9m) and USD2m respectively, and for the comparative period USD538m and USD1m, respectively. Prior to 1 July 1998, the operations of Astra Merck, Inc. were accounted for as a joint venture. 4 EXCEPTIONAL ITEMS 4th 4th Quarter Quarter Year Year Exceptional items included in the 1999 1998 1999 1998 profit and loss account USDm USDm USDm USDm ------------------------------------ ----- ----- ----- ----- Integration and synergy costs (532) - (864) - Astra Pharmaceuticals L.P. restructuring costs (4) (63) (28) (72) Salick Health Care impairment and rationalisation costs (145) - (145) - Agrochemicals restructuring costs (125) - (125) - Granting of US Imdur marketing rights - 163 - 163 ------------------------------------ ----- ----- ----- ----- Exceptional items included in operating profits (806) 100 (1,162) 91 ------------------------------------ ----- ----- ----- ----- Gain on disposal of Specialties business (after charging USD406m of goodwill previously written off to reserves) - - 237 - Loss on closure of organophosphate intermediates business - - - (46) Profit on sale of fixed assets - 17 - 17 ------------------------------------ ----- ----- ----- ----- Profit/(loss) on sale and closure of operations and assets - 17 237 (29) ------------------------------------ ----- ----- ----- ----- Merck 'Trigger Event' payment and related costs (96) - (809) - Other merger costs - - (204) - ------------------------------------ ----- ----- ----- ----- Merger costs (96) - (1,013) - ------------------------------------ ----- ----- ----- ----- Total exceptional items before taxation (902) 117 (1,938) 62 Net taxation credit 166 (20) 351 (4) ------------------------------------ ----- ----- ----- ----- (736) 97 (1,587) 58 ------------------------------------ ----- ----- ----- ----- Current period cash flow related 4th to exceptional items and merger Quarter Year related payments, before associated 1999 1999 tax charge/relief USDm USDm ----------------------------------------- ----- ----- Merck 'Trigger Event' payment - (713) Pharmaceuticals other merger, integration and synergy costs (129) (527) Salick Health Care rationalisation 12 12 Agrochemicals restructuring (20) (20) Costs relating to the disposal of Specialties business (338) (338) ----------------------------------------- ----- ----- Outflow related to exceptional charges (475) (1,586) Proceeds from the disposal of Specialties business (included in 'Acquisitions and disposals') 19 1,956 ----------------------------------------- ----- ----- Exceptional item cash flow (456) 370 ----------------------------------------- ----- ----- 'First Option' payment to Merck (included in 'Net cash expenditure on fixed assets') - (967) ----------------------------------------- ----- ----- Exceptional and merger related cash outflow (456) (597) ----------------------------------------- ----- ----- 5 RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS 1999 1998 USDm USDm ----------------------------------------- ----- ----- Shareholders' funds at beginning of year 10,929 9,552 ----------------------------------------- ----- ----- Net profit for the financial year 1,143 2,611 Dividends (1,242) (1,061) ----------------------------------------- ----- ----- (99) 1,550 Issues of AstraZeneca PLC Ordinary Shares 19 12 Repurchase of AstraZeneca PLC Ordinary Shares (183) - Astra AB minority interest buy out (142) - Foreign currency adjustments (630) (183) Goodwill written back 410 - Other movements (2) (2) ----------------------------------------- ----- ----- Net (reduction in)/addition to Shareholders' funds (627) 1,377 ----------------------------------------- ----- ----- Shareholders' funds at end of year 10,302 10,929 ----------------------------------------- ----- ----- 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 1999 flow posals ments ments 1999 USDm USDm USDm USDm USDm USDm --------------------------------------------------------------------------- Loans due after 1 year (761) (27) - 30 19 (739) Current instalments of loans (30) 28 - (30) (2) (34) Finance leases (20) 6 12 - - (2) --------------------------------------------------------------------------- Total loans and lease finance (811) 7 12 - 17 (775) --------------------------------------------------------------------------- Short-term investments 2,702 254 - - (97) 2,859 Cash 710 (249) - - (32) 429 Overdrafts (144) (31) - - 8 (167) Short-term borrowings, excluding overdrafts (203) 14 - - 12 (177) --------------------------------------------------------------------------- 3,065 (12) - - (109) 2,944 --------------------------------------------------------------------------- Net cash funds 2,254 (5) 12 - (92) 2,169 --------------------------------------------------------------------------- Net purchase of shares 164 Issue of shares by subsidiaries to minorities (3) --------------------------------------------------------------------------- Net cash inflow before management of liquid resources and financing 156 --------------------------------------------------------------------------- 7 SEGMENT ANALYSIS 4th 4th Quarter Quarter Year Year 1999 1998 1999 1998 USDm USDm USDm USDm ------------------------------------ ----- ----- ----- ----- Sales by class of business Healthcare 3,894 3,662 15,042 11,223 Pharmaceuticals 3,850 3,607 14,834 11,015 Salick Health Care 44 55 208 208 Other trading 22 30 92 95 ------------------------------------ ----- ----- ----- ----- Ongoing operations 3,916 3,692 15,134 11,318 ------------------------------------ ----- ----- ----- ----- Agrochemicals (to be discontinued) 553 532 2,657 2,790 ------------------------------------ ----- ----- ----- ----- Continuing operations 4,469 4,224 17,791 14,108 ------------------------------------ ----- ----- ----- ----- Specialties (discontinued) 24 320 654 1,294 ------------------------------------ ----- ----- ----- ----- Total Operations 4,493 4,544 18,445 15,402 ------------------------------------ ----- ----- ----- ----- Operating profit/(loss) before exceptional items Healthcare 803 815 3,595 2,573 Pharmaceuticals 805 823 3,603 2,587 Salick Health Care (2) (8) (8) (14) Other trading (7) (9) (25) (27) ------------------------------------ ----- ----- ----- ----- Ongoing operations 796 806 3,570 2,546 ------------------------------------ ----- ----- ----- ----- Agrochemicals (to be discontinued) (11) (5) 267 359 ------------------------------------ ----- ----- ----- ----- Continuing operations 785 801 3,837 2,905 ------------------------------------ ----- ----- ----- ----- Specialties (discontinued) 4 40 71 146 ------------------------------------ ----- ----- ----- ----- Total Operations 789 841 3,908 3,051 ------------------------------------ ----- ----- ----- ----- Operating profit/(loss) before exceptional items as a percentage of sales % % % % ------------------------------------ ----- ----- ----- ----- Healthcare 20.6 22.3 23.9 22.9 Pharmaceuticals 20.9 22.8 24.3 23.5 Salick Health Care (4.5) (14.5) (3.8) (6.7) Ongoing operations 20.3 21.9 23.6 22.5 ------------------------------------ ----- ----- ----- ----- Agrochemicals (to be discontinued) (2.0) (0.9) 10.0 12.9 ------------------------------------ ----- ----- ----- ----- Continuing operations 17.6 19.0 21.6 20.6 ------------------------------------ ----- ----- ----- ----- Specialties (discontinued) 16.7 12.5 10.9 11.2 ------------------------------------ ----- ----- ----- ----- Total Operations 17.6 18.5 21.2 19.8 ------------------------------------ ----- ----- ----- ----- 8 PRODUCT AND TERRITORIAL SEGMENT SALES ANALYSIS 4th 4th Pro Forma Pro Forma Quarter Quarter % Growth Year Year % Growth 1999 1998 Constant 1999 1998 Constant USDm USDm Currency USDm USDm Currency ------------------ ----- ----- ----- ----- ----- ----- Gastrointestinal: Losec 1,522 1,366 14% 5,909 4,799 24% Others 12 13 0% 48 46 11% ------------------ ----- ----- ----- ----- ----- ----- Total Gastrointestinal 1,534 1,379 14% 5,957 4,845 24% ------------------ ----- ----- ----- ----- ----- ----- Cardiovascular: Zestril 297 347 -12% 1,221 1,126 9% Tenormin 141 141 2% 509 502 2% Seloken 122 122 3% 531 450 19% Plendil 124 99 28% 452 367 24% Imdur 24 37 -30% 109 121 -8% Ramace 17 17 12% 68 64 9% Atacand 55 19 215% 171 43 312% Others 90 90 3% 355 344 4% ------------------ ----- ----- ----- ----- ----- ----- Total Cardiovascular 870 872 3% 3,416 3,017 14% ------------------ ----- ----- ----- ----- ----- ----- Respiratory: Pulmicort 191 197 4% 730 691 9% Accolate 47 28 72% 156 152 4% Rhinocort 30 39 -18% 167 158 8% Bricanyl 39 42 -2% 142 154 -5% Oxis 24 16 69% 87 44 107% Others 16 16 6% 57 57 - ------------------ ----- ----- ----- ----- ----- ----- Total Respiratory 347 338 10% 1,339 1,256 10% ------------------ ----- ----- ----- ----- ----- ----- Oncology: Zoladex 194 168 14% 686 626 9% Nolvadex 144 136 4% 573 526 7% Casodex 95 74 31% 340 245 41% Arimidex 40 35 20% 140 121 19% Others 7 8 0% 25 20 30% ------------------ ----- ----- ----- ----- ----- ----- Total Oncology 480 421 14% 1,764 1,538 15% ------------------ ----- ----- ----- ----- ----- ----- Specialist/Hospital: Diprivan 144 196 -25% 608 653 -6% Xylocaine 65 66 -4% 249 240 2% Marcaine 25 21 24% 88 80 11% Naropin 12 10 20% 45 31 48% Zomig 54 40 40% 189 102 88% Seroquel 71 22 223% 232 66 254% Merrem 39 32 31% 153 128 29% Other Products 180 182 0% 683 674 1% Astra Tech 29 28 15% 111 100 15% ------------------ ----- ----- ----- ----- ----- ----- Total Specialist/ Hospital 619 597 6% 2,358 2,074 15% ------------------ ----- ----- ----- ----- ----- ----- Total Pharmaceuticals 3,850 3,607 10% 14,834 12,730 18% ------------------ ----- ----- ----- ----- ----- ----- Salick Health Care 44 55 -20% 208 208 - ------------------ ----- ----- ----- ----- ----- ----- Total Healthcare 3,894 3,662 9% 15,042 12,938 17% ------------------ ----- ----- ----- ----- ----- ----- 8 PRODUCT AND TERRITORIAL SEGMENT SALES ANALYSIS (CONTINUED) 4th 4th Pro Forma Pro Forma Quarter Quarter % Growth Year Year % Growth 1999 1998 Constant 1999 1998 Constant USDm USDm Currency USDm USDm Currency ------------------ ----- ----- ----- ----- ----- ----- Territorial Analysis USA: Pharmaceut- icals 1,749 1,666 5% 7,156 5,834 23% Salick Health Care 44 55 -20% 208 208 - ------------------ ----- ----- ----- ----- ----- ----- Total USA 1,793 1,721 4% 7,364 6,042 22% Japan 242 181 13% 710 568 8% France 246 211 31% 870 714 27% Germany 207 232 - 850 861 2% Italy 141 135 18% 579 512 17% Sweden 96 92 13% 359 348 8% UK 229 238 -1% 819 808 3% Rest of World 940 852 19% 3,491 3,085 18% ------------------ ----- ----- ----- ----- ----- ----- Total Healthcare 3,894 3,662 9% 15,042 12,938 17% ------------------ ----- ----- ----- ----- ----- ----- Pro Forma constant currency % growth has been calculated as if the Astra Merck Restructuring had occurred on 1 January 1998 and excluding the effects arising from exchange rate movements. 4th 4th Quarter Quarter % Growth Year Year % Growth 1999 1998 Constant 1999 1998 Constant Agrochemicals USDm USDm Currency USDm USDm Currency ------------------ ----- ----- ----- ----- ----- ----- Product Analysis Herbicides: Non-Selective 138 120 13% 671 670 - Selective 163 139 21% 753 874 -13% ------------------ ----- ----- ----- ----- ----- ----- Total Herbicides 301 259 17% 1,424 1,544 -8% Insecticides 76 121 -35% 406 504 -19% Fungicides 154 129 24% 744 651 14% Others 22 23 - 83 91 -9% ------------------ ----- ----- ----- ----- ----- ----- Total Agrochemicals 553 532 6% 2,657 2,790 -5% ------------------ ----- ----- ----- ----- ----- ----- Territorial Analysis North America 95 108 -10% 822 933 -12% Latin America 151 154 -5% 453 550 -18% Europe 174 154 25% 929 899 5% Asia, Africa, Australasia 133 116 12% 453 408 8% ------------------ ----- ----- ----- ----- ----- ----- Total Agrochemicals 553 532 6% 2,657 2,790 -5% ------------------ ----- ----- ----- ----- ----- ----- 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 1999 1998 1999 1998 1999 1998 31 December USDm USDm GBPm GBPm SEKm SEKm ------------------ ----- ----- ----- ----- ----- ----- Total Sales 4,493 4,544 2,776 2,808 38,249 38,683 Ongoing operations 3,916 3,692 2,420 2,281 33,337 31,430 Healthcare 3,894 3,662 2,406 2,263 33,150 31,175 ------------------ ----- ----- ----- ----- ----- ----- Operating profit before exceptional items (EI) 789 841 487 520 6,717 7,159 Ongoing operations before EI 796 806 492 498 6,776 6,861 Healthcare before EI 803 815 496 504 6,836 6,938 ------------------ ----- ----- ----- ----- ----- ----- Profit before tax on ongoing operations before EI 802 797 496 492 6,827 6,785 ------------------ ----- ----- ----- ----- ----- ----- Net (loss)/profit for the period (173) 700 (107) 432 (1,473) 5,959 ------------------ ----- ----- ----- ----- ----- ----- Earnings per Ordinary Share before EI USD0.32 USD0.34 GBP0.20 GBP0.21 SEK2.72 SEK2.89 ------------------ ----- ----- ----- ----- ----- ----- For the year ended 1999 1998 1999 1998 1999 1998 31 December USDm USDm GBPm GBPm SEKm SEKm ------------------ ----- ----- ----- ----- ----- ----- Total Sales 18,445 15,402 11,397 9,517 157,022 131,117 Ongoing Operations 15,134 11,318 9,351 6,993 128,836 96,350 Healthcare 15,042 11,223 9,294 6,935 128,053 95,541 ------------------ ----- ----- ----- ----- ----- ----- Operating profit before exceptional items (EI) 3,908 3,051 2,415 1,885 33,269 25,973 Ongoing operations before EI 3,570 2,546 2,206 1,573 30,391 21,674 Healthcare before EI 3,595 2,573 2,221 1,590 30,604 21,904 ------------------ ----- ----- ----- ----- ----- ----- Profit before tax on ongoing operations before EI 3,556 3,127 2,197 1,932 30,272 26,620 ------------------ ----- ----- ----- ----- ----- ----- Net profit for the period 1,143 2,611 706 1,613 9,730 22,227 ------------------ ----- ----- ----- ----- ----- ----- Basic earnings per Ordinary Share USD0.64 USD1.47 GBP0.40 GBP0.91 SEK5.45 SEK12.51 Earnings per Ordinary Share before EI USD1.54 USD1.44 GBP0.95 GBP0.89 SEK13.11 SEK12.26 ------------------ ----- ----- ----- ----- ----- ----- Dividend per Ordinary Share USD0.70 n/a 43.3p n/a SEK5.90 n/a ------------------ ----- ----- ----- ----- ----- ----- Net cash inflow from operating activities 3,113 3,832 1,923 2,368 26,501 32,622 Decrease in cash (280) (186) (173) (115) (2,384) (1,583) ------------------ ----- ----- ----- ----- ----- ----- Shareholders' funds - equity 31 December 10,302 10,929 6,366 6,753 87,701 93,039 ------------------ ----- ----- ----- ----- ----- ----- Sterling (GBP) and Swedish Kronor equivalents are shown for convenience and have been calculated using the current period end rates of USD1=GBP0.6179 and USD1=SEK 8.5130, 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 13, 14 and 16 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 has been 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 has been recorded as goodwill. The in-process research and development and inventory step up have been taken as a one off charge to net income, together with additional amortisation and depreciation arising as a result of the fair value exercise. Pre-acquisition results of Astra are excluded from net income. Other differences as they apply to AstraZeneca PLC (formerly Zeneca Group 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. 1999 1998 Income attributable to Shareholders USDm USDm ----------------------------------------- ----- ----- Net income for the period under UK GAAP 1,143 2,611 Pre-acquisition results of Astra (413) (1,427) ----------------------------------------- ----- ----- 730 1,184 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 (759) - - others (61) (80) Divestment of Specialties business 284 - Impairment of Salick Health Care goodwill (308) - Capitalisation, less disposals and amortisation of interest 5 8 Deferred taxation - on fair value of Astra 547 - - other 117 (28) Pension expense (103) (53) Post-retirement benefits/plan amendment 4 5 Software costs capitalised 29 - Restructuring costs 119 - Unrealised losses on foreign exchange (2) - ----------------------------------------- ----- ----- Net (loss) income in accordance with US GAAP (3,539) 1,036 ----------------------------------------- ----- ----- Net (loss) income from continuing operations (4,071) 796 Net income from discontinued operations 108 240 Gain on disposal of Specialties business 424 - ----------------------------------------- ----- ----- Net (loss) income per Ordinary Share under US GAAP (basic) (2.26) 1.09 Net (loss) income per Ordinary Share under US GAAP (diluted) (2.25) 1.09 ----------------------------------------- ----- ----- In addition to the pre-acquisition results of Astra, net income from continuing operations in accordance with US GAAP is depressed by one off charges of USD3,315m to write off acquired in-process research and development and USD826m for the step up in inventory values at acquisition (USD3,800m in total after tax relief of USD341m). RECONCILIATION TO UNITED STATES ACCOUNTING PRINCIPLES (CONTINUED) 31 Dec 31 Dec 1999 1998 Shareholders' equity USDm USDm ----------------------------------------- ----- ----- Shareholders' equity under UK GAAP 10,302 10,929 Net assets of Astra before acquisition - (6,757) ----------------------------------------- ----- ----- 10,302 4,172 Adjustments to conform to US GAAP: Purchase accounting adjustments, (including goodwill and intangibles): - deemed acquisition of Astra - goodwill 14,202 - - tangible and intangible fixed assets 11,174 - - others 490 1,157 Capitalisation, less disposals and amortisation of interest 151 181 Deferred taxation - on fair value of Astra (3,172) - - others (247) (111) Dividend 834 442 Pension expense (172) (241) Post-retirement benefits/plan amendment (31) (42) Software costs captialised 29 - Restructuring costs 119 - Others 56 - ----------------------------------------- ----- ----- Shareholders' equity in accordance with US GAAP 33,735 5,558 ----------------------------------------- ----- ----- Shareholder Information ANNOUNCEMENTS AND MEETINGS --------------------------------------------------------------------------- Announcement of first quarter results 3 May 2000 Annual General Meeting 26 May 2000 DIVIDENDS --------------------------------------------------------------------------- The record date for the second interim dividend payable on 17 April 2000 (in the UK, Sweden and the US) is 10 March 2000. Ordinary Shares will trade ex- dividend on the London Stock Exchange from 6 March 2000 and on the Stockholm Stock Exchange from 8 March 2000. ADSs will trade ex-dividend on the New York Stock Exchange from 8 March 2000. Future dividends will normally be paid as follows: First interim Announced in early August 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: Amistar Iressa Karate Nexium Prilosec Rhinocort Aqua Surpass Symbicort Touchdown Turbuhaler Viozan 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 Centre The AstraZeneca Morgan Guaranty 15 Stanhope Gate Vardepapperscentralen Registrar Trust Company London VPC AB Lloyds TSB of New York W1Y 6LN Box 7822 Registrars 60 Wall Street S-103 97 Stockholm The Causeway New York Sweden Worthing New York 10260 West Sussex BN99 6DA Tel: (01903) Tel: (212) Tel: (0171) Tel: (8) 502 541 648 3208 304 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; exposure to US environmental liabilities and the impact on the Agrochemicals business from the growing importance to agriculture of biotechnology and the use of genetically modified crops. 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.

Companies

AstraZeneca (AZN)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today