Final Results - Part 2
AstraZeneca PLC
31 January 2002
PART 2.
Consolidated Profit & Loss Account For Continuing Operations
2001 2000
For the year ended 31 December $m $m
Sales 16,480 15,804
Cost of sales (4,456) (4,181)
Distribution costs (122) (210)
Research and development (2,687) (2,620)
Selling, general and administrative expenses (5,427) (5,032)
Other operating income 368 223
Operating profit before exceptional items 4,156 3,984
Exceptional items charged to operating profit (202) (322)
Operating profit 3,954 3,662
Share of joint ventures' and associates' operating profits - (149)
Profit on sale of fixed assets 10 -
Net interest and dividend income 113 138
Profit on ordinary activities before taxation 4,077 3,651
Profit before taxation before exceptional items 4,269 4,110
Exceptional items charged to profit before taxation (192) (459)
Taxation (1,099) (1,114)
Profit on ordinary activities after taxation 2,978 2,537
Attributable to minorities (11) (9)
Net profit for the year 2,967 2,528
Dividends to Shareholders (1,225) (1,236)
Earnings per Ordinary Share before exceptional items $1.77 $1.64
Earnings per Ordinary Share $1.69 $1.43
Diluted earnings per Ordinary Share $1.69 $1.43
Weighted average number of Ordinary Shares in issue (millions) 1,758 1,768
Diluted average number of Ordinary Shares in issue (millions) 1,761 1,770
Consolidated Profit & Loss Account For Continuing Operations
2001 2000
For the quarter ended 31 December $m $m
Sales 4,440 4,144
Cost of sales (1,206) (1,136)
Distribution costs (33) (42)
Research and development (732) (778)
Selling, general and administrative expenses (1,443) (1,317)
Other operating income 64 100
Operating profit before exceptional items 1,090 971
Exceptional items charged to operating profit (76) (100)
Operating profit 1,014 871
Share of joint ventures' and associates' operating profits - (156)
Profit on sale of fixed assets - -
Net interest and dividend income 12 82
Profit on ordinary activities before taxation 1,026 797
Profit before taxation before exceptional items 1,102 1,034
Exceptional items charged to profit before taxation (76) (237)
Taxation (263) (265)
Profit on ordinary activities after taxation 763 532
Attributable to minorities (4) 1
Net profit for the period 759 533
Dividends to Shareholders (820) (830)
Earnings per Ordinary Share before exceptional items $0.47 $0.42
Earnings per Ordinary Share $0.43 $0.30
Diluted earnings per Ordinary Share $0.43 $0.30
Weighted average number of Ordinary Shares in issue (millions) 1,750 1,766
Diluted average number of Ordinary Shares in issue (millions) 1,752 1,768
Consolidated Balance Sheet
2001 2000
At 31 December $m $m
Fixed assets
Tangible fixed assets 5,409 4,957
Goodwill and intangible assets 2,700 2,951
Fixed asset investments 23 11
8,132 7,919
Current assets
Stocks 2,402 2,105
Debtors 3,628 3,960
Cash and short-term investments 3,823 4,450
9,853 10,515
Total assets 17,985 18,434
Creditors due within one year
Short-term borrowings and current instalments of loans (321) (214)
Other creditors (6,159) (6,683)
(6,480) (6,897)
Net current assets 3,373 3,618
Total assets less current liabilities 11,505 11,537
Creditors due after more than one year
Loans (635) (631)
Other creditors (152) (296)
Provisions for liabilities and charges (896) (1,068)
(1,683) (1,995)
Net assets 9,822 9,542
Capital and reserves
Shareholders' funds - equity interests 9,786 9,521
Minority equity interests 36 21
Shareholders' funds and minority interests 9,822 9,542
Statement of Total Recognised Gains and Losses
2001 2000
For the year ended 31 December $m $m
Net profit for the financial year 2,967 2,538
Exchange adjustments on net assets (495) (1,038)
Translation differences on foreign currency borrowings 18 154
Tax on translation differences on foreign currency borrowings (6) (42)
Total recognised gains and losses for the financial year 2,484 1,612
Consolidated Cash Flow Statement
Continuing
Operations Total
2001 2000 2000
For the year ended 31 December $m $m $m
Cash flow from operating activities
Operating profit before exceptional items 4,156 3,986 4,330
Depreciation and amortisation 860 870 988
Increase in working capital (1,006) (429) (340)
Other non-cash movements 120 (84) 14
Net cash inflow from operating activities before exceptional
items 4,130 4,343 4,992
Outflow related to exceptional items (368) (731) (809)
Net cash inflow from operating activities 3,762 3,612 4,183
Returns on investments and servicing of finance 156 19 19
Tax paid (792) (497) (648)
Capital expenditure and financial investment (1,543) (1,277) (1,426)
Acquisitions and disposals (44) 604 (169)
Net repayment of debt by Zeneca Agrochemicals - - 909
Equity dividends paid to Shareholders (1,236) (1,220) (1,220)
Net cash inflow before management of liquid resources and
financing 303 1,241 1,648
Management of liquid resources
Movement in short-term investments and fixed deposits (net) 260 (608) (608)
Financing (959) (400) (400)
(Decrease)/increase in cash in the year (396) 233 640
Reconciliation of Cash Flow to Net Cash Funds
Total
2001 2000
For the year ended 31 December $m $m
Net funds at 1 January 3,605 2,169
Net cash flows before management of liquid resources and
financing 303 1,648
Net cash flows from share issues and repurchases (994) (334)
Acquisitions and disposals - 127
Other non cash changes - 48
Exchange (47) (53)
Net funds at 31 December 2,867 3,605
Notes to the Preliminary Announcement
1 BASIS OF PREPARATION AND ACCOUNTING POLICIES
The results for the year ended 31 December 2001 have been prepared in accordance
with UK generally accepted accounting principles. The accounting policies
applied are those set out in AstraZeneca PLC's 2000 Annual Report and Form 20-F.
In 2001, the continued standardisation of accounting treatments across
AstraZeneca has led certain subsidiaries to classify as cost of sales some
elements of expense recorded as distribution costs in previous periods. The
effect of this change in the year to 31 December 2001 is to reclassify
approximately $120m of costs. Previous periods have not been restated.
Continuing operations comprises the ongoing business of AstraZeneca and the
Comparative Profit and Loss Account figures for 2000 exclude the results of the
Agrochemicals business which was demerged on 13 November 2000. The full
comparative Profit and Loss Account for 2000 is detailed in Note 2 below.
The results for the year ended 2001 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 2001 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 2000 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 CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2000
Continuing Discontinued
Operations Operations Total
$m $m $m
Sales 15,804 2,299 18,103
Cost of sales (4,181) (1,299) (5,480)
Distribution costs (210) (76) (286)
Research and development (2,620) (222) (2,842)
Selling, general and administrative expenses (5,032) (399) (5,431)
Other operating income 223 43 266
Operating profit before exceptional items 3,984 346 4,330
Exceptional items charged to operating profit (322) - (322)
Operating profit 3,662 346 4,008
Share of joint ventures' and associates' operating losses (149) - (149)
Profits less losses on sale, closure or demerger of operations - (150) (150)
Net interest and dividend income 138 - 138
Profit on ordinary activities before taxation 3,651 196 3,847
Taxation (1,114) (185) (1,299)
Profit on ordinary activities after taxation 2,537 11 2,548
Attributable to minorities (9) (1) (10)
Net profit for the year 2,528 10 2,538
Dividends to Shareholders (2,905)
Loss retained for the year (367)
Earnings per Ordinary Share before exceptional items $1.64 $0.12 $1.76
Earnings per Ordinary Share $1.43 $0.01 $1.44
Diluted earnings per Ordinary Share $1.43 $0.01 $1.44
3 JOINT VENTURES AND ASSOCIATES
The Group's share of joint ventures' sales for the year ended 31 December 2001
amounted to $183m and $195m for the comparative period. Share of joint
ventures' operating profits for the year ended 31 December 2001 amounted to nil,
and for the comparative period $(149)m. The 2000 results reflect operational
losses of $12m, together with an exceptional charge of $88m to provide for
impairment of the 50% interest in the seed company Advanta, and write off of
related goodwill which had previously been taken to reserves.
4 ANALYSIS OF EXCEPTIONAL ITEMS CHARGED TO OPERATING PROFIT
The following are the components of the exceptional charges to operating profits
from continuing operations which relate to the integration and synergy programme
commenced after the AstraZeneca merger:
2001 2000
For the year ended 31 December $m $m
Cost of sales 34 11
Research and development 86 51
Selling, general and administrative expenses 82 260
Total exceptional items charged to operating profit 202 322
5 RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
2001 2000
For the year ended 31 December $m $m
Shareholders' funds at beginning of year 9,521 10,302
Net profit for the period - from continuing operations 2,967 2,528
- from discontinued operations - 10
Dividends to Shareholders (1,225) (2,905)
1,742 (367)
Issue of AstraZeneca PLC Ordinary Shares 86 19
Repurchase of AstraZeneca PLC Ordinary Shares (1,080) (353)
Goodwill written back - 862
Foreign currency adjustment (483) (926)
Minority interest buy out - (8)
Other movements - (8)
Net addition to Shareholders' funds 265 (781)
Shareholders' funds at end of year 9,786 9,521
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.
At 31 Dec Cash Other Exchange At 31 Dec
2000 flow non-cash movements 2001
$m $m $m $m $m
Loans due after 1 year (631) (11) 8 (1) (635)
Current instalments of loans (88) (17) (8) 6 (107)
Total loans (719) (28) - 5 (742)
Short-term investments 3,429 (260) - (51) 3,118
Cash 1,021 (299) - (17) 705
Overdrafts (113) (97) - 15 (195)
Short-term borrowings, excluding
overdrafts (13) (7) - 1 (19)
4,324 (663) - (52) 3,609
Net cash funds 3,605 (691) - (47) 2,867
Issue of AstraZeneca PLC Ordinary Shares (86)
Repurchase of AstraZeneca PLC Ordinary
Shares 1,080
Net cash inflow before management of
liquid resources and financing 303
7 YEAR END PRODUCT SALES ANALYSIS
World US
Constant
Actual Currency Actual
2001 2000 Growth Growth 2001 Growth
$m $m % % $m %
Gastrointestinal:
Losec 5,684 6,260 (9) (7) 3,694 (13)
Nexium 580 17 n/m n/m 456 n/m
Others 44 45 (2) 7 3 n/m
Total Gastrointestinal 6,308 6,322 - 2 4,153 (2)
Cardiovascular:
Zestril 1,097 1,188 (8) (6) 642 (7)
Seloken 722 577 25 28 440 47
Plendil 471 480 (2) 2 203 6
Atacand 414 293 41 46 154 29
Tenormin 404 471 (14) (7) 53 (21)
Imdur 86 94 (9) (3) 10 (29)
Others 343 374 (8) (3) 62 (3)
Total Cardiovascular 3,537 3,477 2 6 1,564 8
Respiratory:
Pulmicort 775 705 10 14 276 80
Rhinocort 269 221 22 25 181 38
Accolate 146 152 (4) (2) 102 (16)
Oxis 127 116 9 15 - -
Bricanyl 107 125 (14) (8) - -
Symbicort 83 - n/m n/m - -
Others 49 53 (8) 1 - -
Total Respiratory 1,556 1,372 13 17 559 38
Oncology:
Zoladex 728 734 (1) 5 207 9
Nolvadex 630 576 9 12 474 18
Casodex 569 433 31 37 241 27
Arimidex 191 156 22 27 61 15
Others 28 30 (7) 3 - -
Total Oncology 2,146 1,929 11 16 983 18
CNS:
Seroquel 700 424 65 67 568 51
Zomig 277 237 17 20 151 6
Others 22 24 (8) (8) 6 (45)
Total CNS 999 685 46 48 725 37
7 YEAR END PRODUCT SALES ANALYSIS (CONTINUED)
World US
Constant
Actual Currency Actual
2001 2000 Growth Growth 2001 Growth
$m $m % % $m %
Pain, Infection and Other
Pharma:
Diprivan 465 507 (8) (4) 217 (4)
Merrem 227 170 34 40 54 135
Xylocaine 212 238 (11) (5) 59 (6)
Marcaine 87 92 (5) - 31 (3)
Naropin 62 53 17 23 14 -
Other Pharma Products 458 563 (19) (9) 139 (14)
Total Pain, Infection and Other
Pharma 1,511 1,623 (7) - 514 (1)
Salick Health Care 194 176 10 10 194 10
Astra Tech 126 114 11 19 8 60
Marlow Foods 103 90 14 22 - -
Other - 16 n/m n/m - -
Total 16,480 15,804 4 8 8,700 7
n/m not meaningful
8 FOURTH QUARTER PRODUCT SALES ANALYSIS
World US
4th 4th Constant 4th
Quarter Quarter Actual Currency Quarter Actual
2001 2000 Growth Growth 2001 Growth
$m $m % % $m %
Gastrointestinal:
Losec 1,397 1,728 (19) (19) 848 (30)
Nexium 285 13 n/m n/m 238 n/m
Others 14 11 27 36 3 n/m
Total Gastrointestinal 1,696 1,752 (3) (3) 1,089 (10)
Cardiovascular:
Zestril 265 228 16 15 148 42
Seloken 168 172 (2) (3) 90 (10)
Plendil 139 127 9 10 69 21
Atacand 125 97 29 27 49 7
Tenormin 104 108 (4) (1) 10 100
Imdur 22 21 5 5 2 (33)
Others 93 89 4 2 23 77
Total Cardiovascular 916 842 9 9 391 19
8 FOURTH QUARTER PRODUCT SALES ANALYSIS (CONTINUED)
World US
4th 4th Constant 4th
Quarter Quarter Actual Currency Quarter Actual
2001 2000 Growth Growth 2001 Growth
$m $m % % $m %
Respiratory:
Pulmicort 205 193 6 4 76 29
Rhinocort 75 56 34 34 54 50
Accolate 31 21 48 48 19 46
Oxis 33 32 3 - - -
Bricanyl 27 31 (13) (13) - -
Symbicort 49 - n/m n/m - -
Others 13 15 (13) (6) - -
Total Respiratory 433 348 24 23 149 38
Oncology:
Zoladex 209 181 15 17 53 66
Nolvadex 184 171 8 9 139 12
Casodex 176 119 48 50 73 62
Arimidex 52 39 33 33 13 8
Others 6 8 (25) (12) - -
Total Oncology 627 518 21 23 278 31
CNS:
Seroquel 174 131 33 34 130 15
Zomig 68 59 15 15 33 3
Others 6 - n/m n/m 1 n/m
Total CNS 248 190 31 32 164 13
Pain, Infection and Other
Pharma:
Diprivan 136 114 19 20 69 57
Merrem 65 48 35 37 17 42
Xylocaine 57 63 (10) (7) 19 6
Marcaine 26 25 4 4 12 20
Naropin 19 14 36 36 5 25
Other Pharma Products 105 134 (22) (9) 29 (34)
Total Pain, Infection and Other
Pharma 408 398 3 8 151 14
Salick Health Care 50 41 22 22 50 22
Astra Tech 36 29 24 24 3 50
Marlow Foods 26 22 18 22 - -
Other - 4 n/m n/m - -
Total 4,440 4,144 7 8 2,275 5
n/m not meaningful
9 FULL YEAR TERRITORIAL SALES ANALYSIS
% Growth
2001 2000 Constant
$m $m Actual Currency
USA 8,700 8,153 7 7
Japan 851 825 3 16
France 967 886 9 15
Germany 693 699 (1) 4
Italy 638 555 15 21
Sweden 263 318 (17) (4)
UK 777 820 (5) 1
Rest of World 3,591 3,548 1 8
Total 16,480 15,804 4 8
10 FOURTH QUARTER TERRITORIAL SALES ANALYSIS
% Growth
4th 4th
Quarter Quarter
2001 2000 Constant
$m $m Actual Currency
USA 2,275 2,177 5 5
Japan 260 244 7 16
France 266 224 19 13
Germany 182 171 6 -
Italy 181 138 31 24
Sweden 64 76 (16) (7)
UK 226 217 4 3
Rest of World 986 897 10 13
Total 4,440 4,144 7 8
Convenience Translation of Key Financial Information
2001 2000* 2001 2000* 2001 2000*
For the three months ended 31 $m $m £m £m SEKm SEKm
December
Total Sales 4,440 4,265 3,062 2,941 46,806 44,962
Operating profit before
exceptional items (EI) 1,090 965 752 665 11,491 10,173
Profit before tax on continuing
operations before EI 1,102 1,034 760 713 11,617 10,900
Net profit for the year 759 331 523 228 8,001 3,489
Earnings per Ordinary Share pre
EI $0.47 $0.42 £0.32 £0.29 SEK4.95 SEK4.43
2001 2000* 2001 2000* 2001 2000*
For the year ended 31 December $m $m £m £m SEKm SEKm
Total Sales 16,480 18,103 11,364 12,484 173,732 190,842
Operating profit before
exceptional items (EI) 4,156 4,330 2,866 2,986 43,813 45,647
Profit before tax on continuing
operations before EI 4,269 4,110 2,944 2,834 45,004 43,328
Net profit for the year 2,967 2,538 2,046 1,750 31,278 26,756
Basic earnings per Ordinary
Share $1.69 $1.44 £1.17 £0.99 SEK17.82 SEK15.18
Earnings per Ordinary Share pre
EI $1.77 $1.76 £1.22 £1.21 SEK18.66 SEK18.55
Dividend per Ordinary Share $0.70 $0.70 49.3p 47.4p SEK7.45 SEK6.59
Net cash inflow from operating
activities 3,762 4,183 2,594 2,885 39,659 44,097
(Decrease)/increase in cash (396) 640 (273) 441 (4,175) 6,747
Shareholders' funds - equity
interests 31 December 9,786 9,521 6,748 6,566 103,164 100,370
* includes discontinued operations except for profit before tax on continuing
operations before EI.
Sterling (£) and Swedish Kronor equivalents are shown for convenience and have
been calculated using the current period end rates of $1=£0.689584 and $1=
SEK10.542000, 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 9,
10, 11 and 13 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). The
differences as they apply to AstraZeneca PLC are explained in the Group's 2000
Annual Report and Form 20-F. In the current year, AstraZeneca adopted SFAS No.
133 'Accounting for Derivative Instruments and Hedging Activities'. The
approximate effects on Group income and shareholders' equity of the GAAP
differences are shown below.
2001 2000
Income attributable to Shareholders $m $m
Net income for the year under UK GAAP 2,967 2,538
Adjustments to conform to US GAAP
Purchase accounting adjustments, (including goodwill and tangibles);
- deemed acquisition of Astra
- amortisation and other acquisition adjustments (1,514) (1,756)
- others - (20)
Capitalisation, less disposals and amortisation of interest 57 45
Deferred taxation
- on fair value of Astra 249 284
- others (259) (146)
Pension expense (33) (50)
Post-retirement benefits/plan amendment 4 4
Software costs capitalised (10) 98
Restructuring costs (22) (97)
Unrealised gains/(losses) on foreign exchange and others (74) (35)
Net income before cumulative effect of change in accounting policy 1,365 865
Cumulative effect of change in accounting policy, net of tax, on
adoption 32 -
of SFAS No. 133
Net income in accordance with US GAAP 1,397 865
Net income from continuing operations 1,397 907
Net income/(loss) from discontinued operations - (42)
Net income per Ordinary Share under US GAAP (basic) $0.79 $0.49
Net income per Ordinary Share under US GAAP (diluted) $0.79 $0.49
RECONCILIATION TO UNITED STATES ACCOUNTING PRINCIPLES
31 Dec 31 Dec
2001 2000
Shareholders' equity $m $m
Shareholders' equity under UK GAAP 9,786 9,521
Adjustment to conform to US GAAP
Purchase accounting adjustments, (including goodwill and tangibles);
- deemed acquisition of Astra
- goodwill 11,062 12,610
- tangible and intangible fixed assets 8,139 9,510
- others 31 31
Capitalisation, less disposals and amortisation of interest 192 135
Deferred taxation
- on fair value of Astra (2,313) (2,702)
- others (268) (278)
Dividend 820 830
Pension expense (162) (129)
Post-retirement benefits/plan amendment (28) (32)
Software costs capitalised 110 120
Restructuring costs - 22
Others 33 69
Shareholders' equity in accordance with US GAAP 27,402 29,707
Shareholder Information
ANNOUNCEMENTS AND MEETINGS
Announcement of First Quarter Results 2002 25 April 2002
Annual General Meeting 25 April 2002
Announcement of Half Year Results 2002 25 July 2002
Announcement of Third Quarter Results 2002 24 October 2002
Annual Business Review Week commencing 4 November 2002
DIVIDENDS
The record date for the first interim dividend paid on 5 October 2001 (in the
UK, Sweden and the US) was 24 August 2001. Ordinary Shares traded ex-dividend
on the London and Stockholm Stock Exchanges from 22 August 2001. ADRs traded
ex-dividend on the New York Stock Exchange from the same date.
The record date for the second interim dividend for 2001 payable on 8 April 2002
(in the UK, Sweden and the US) will be 22 February 2002. Ordinary Shares will
trade ex-dividend on the London and Stockholm Stock Exchanges from 20 February
2002. 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 end of July and paid in October.
Second interim Announced in January and paid in April.
TRADE MARKS
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 Atacand Plus Bricanyl
Casodex Crestor Diprivan Faslodex Imdur Iressa Losec Marcaine Merrem
Naropin Nexium Nolvadex Oxis Plendil Prilosec Pulmicort Pulmicort Respules
Rhinocort Rhinocort Aqua Seloken Seroquel Symbicort Tenormin Toprol-XL
Xylocaine Zestril Zoladex Zomig Zomig Rapimelt Zomig ZMT
ADDRESSES FOR CORRESPONDENCE
Registrar and Depositary Registered Office Swedish Securities Register Centre
Transfer Office for ADRs 15 Stanhope Gate VPC AB
The AstraZeneca Registrar Morgan Guaranty Trust London Box 7822
Lloyds TSB Registrars Company of New York W1K 1LN S-103 97 Stockholm
The Causeway ADR Service Center Sweden
Worthing PO Box 842006
West Sussex Boston, MA 02284-2006
BN99 6DA
Tel: (0870) 600 3956 Tel: (781) 575 4328 Tel: (020) 7304 5000 Tel: (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 Preliminary 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