Final Results - Part 2 of 2
AstraZeneca PLC
29 January 2004
Consolidated Profit & Loss Account For Continuing Operations
2003 2002
For the year ended 31 December $m $m
Sales 18,849 17,841
Cost of sales (4,469) (4,520)
Distribution costs (162) (141)
Research and development (3,451) (3,069)
Selling, general and administrative expenses (6,856) (5,998)
Other operating income 200 243
Operating profit before exceptional items 4,111 4,356
Exceptional items charged to operating profit - (350)
Operating profit 4,111 4,006
Net interest and dividend income 91 31
Profit on ordinary activities before taxation 4,202 4,037
Profit before taxation before exceptional items 4,202 4,387
Exceptional items charged to profit before taxation - (350)
Taxation (1,143) (1,177)
Profit on ordinary activities after taxation 3,059 2,860
Attributable to minorities (23) (24)
Net profit for the year 3,036 2,836
Dividends to Shareholders (1,350) (1,206)
Earnings per Ordinary Share before exceptional items $1.78 $1.84
Earnings per Ordinary Share $1.78 $1.64
Diluted earnings per Ordinary Share $1.78 $1.64
Weighted average number of Ordinary Shares in issue (millions) 1,709 1,733
Diluted average number of Ordinary Shares in issue (millions) 1,712 1,735
Consolidated Profit & Loss Account For Continuing Operations
2003 2002
For the quarter ended 31 December $m $m
Sales 4,875 4,901
Cost of sales (1,057) (1,253)
Distribution costs (46) (39)
Research and development (1,042) (892)
Selling, general and administrative expenses (1,949) (1,661)
Other operating income 68 18
Operating profit before exceptional items 849 1,074
Exceptional items charged to operating profit - (350)
Operating profit 849 724
Net interest and dividend income 20 7
Profit on ordinary activities before taxation 869 731
Profit before taxation before exceptional items 869 1,081
Exceptional items charged to profit before taxation - (350)
Taxation (226) (291)
Profit on ordinary activities after taxation 643 440
Attributable to minorities (8) (12)
Net profit for the period 635 428
Dividends to Shareholders (914) (808)
Earnings per Ordinary Share before exceptional items $0.38 $0.45
Earnings per Ordinary Share $0.38 $0.25
Diluted earnings per Ordinary Share $0.38 $0.25
Weighted average number of Ordinary Shares in issue (millions) 1,699 1,723
Diluted average number of Ordinary Shares in issue (millions) 1,701 1,725
Consolidated Balance Sheet
2003 2002
At 31 December $m $m
Fixed assets
Tangible fixed assets 7,536 6,597
Goodwill and intangible assets 2,884 2,807
Fixed asset investments 220 46
10,640 9,450
Current assets
Stocks 3,022 2,593
Debtors 5,960 4,845
Cash and short-term investments 3,951 4,688
12,933 12,126
Total assets 23,573 21,576
Creditors due within one year
Short-term borrowings and current instalments of loans (152) (516)
Other creditors (7,543) (7,699)
(7,695) (8,215)
Net current assets 5,238 3,911
Total assets less current liabilities 15,878 13,361
Creditors due after more than one year
Loans (303) (328)
Other creditors (52) (34)
Provisions for liabilities and charges (2,266) (1,773)
(2,621) (2,135)
Net assets 13,257 11,226
Capital and reserves
Shareholders' funds - equity interests 13,178 11,172
Minority equity interests 79 54
Shareholders' funds and minority interests 13,257 11,226
Statement of Total Recognised Gains and Losses
2003 2002
For the year ended 31 December $m $m
Net profit for the financial year 3,036 2,836
Foreign exchange adjustments on consolidation, net of tax 1,427 1,106
Translation differences on foreign currency borrowings - 6
Tax on translation differences on foreign currency borrowings - (2)
Total recognised gains and losses for the financial year 4,463 3,946
Consolidated Cash Flow Statement
2003 2002
For the year ended 31 December $m $m
Cash flow from operating activities
Operating profit before exceptional items 4,111 4,356
Depreciation and amortisation 1,290 960
(Increase)/decrease in working capital (1,101) 305
Other non-cash movements 317 65
Net cash inflow from operating activities before exceptional 4,617 5,686
items
Outflow related to exceptional items (391) (93)
Net cash inflow from operating activities 4,226 5,593
Returns on investments and servicing of finance 76 35
Tax paid (886) (795)
Capital expenditure and financial investment (1,597) (1,543)
Acquisitions and disposals 80 -
Equity dividends paid to Shareholders (1,222) (1,234)
Net cash inflow before management of liquid resources and 677 2,056
financing
Management of liquid resources
Net movement in short-term investments and fixed deposits 771 (806)
Financing (1,452) (1,272)
Decrease in cash in the year (4) (22)
Reconciliation of Cash Flow to Net Cash Funds
2003 2002
For the year ended 31 December $m $m
Net funds at 1 January 3,844 2,867
Net cash inflows before management of liquid resources and 677 2,056
financing
Net cash outflows from share issues and repurchases (1,107) (1,154)
Exchange 82 75
Net funds at 31 December 3,496 3,844
Notes to the Preliminary Announcement
1 BASIS OF PREPARATION AND ACCOUNTING POLICIES
The results for the full year ended 31 December 2003 have been prepared in
accordance with UK generally accepted accounting principles. The accounting
policies applied are those set out in AstraZeneca PLC's 2002 Annual Report and
Form 20-F.
The results for the year ended 31 December 2003 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 2003 and those
financial statements will be delivered to the Registrar of Companies following
the Company's Annual General Meeting.
Information in this preliminary announcement does 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 2002 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 JOINT VENTURES AND ASSOCIATES
The Group's share of joint venture's sales for the year ended 31 December 2003
amounted to $208 million and $191 million for the comparative period. Share of
joint venture's operating profits for the year ended 31 December 2003 and 2002
amounted to $nil.
3 ANALYSIS OF EXCEPTIONAL ITEMS CHARGED TO OPERATING PROFIT
2003 2002
$m $m
Accrual related to ZoladexTM investigations - 350
- 350
4 RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
2003 2002
For the year ended 31 December $m $m
Shareholders' funds at beginning of year 11,172 9,586
Net profit for the year 3,036 2,836
Dividends to Shareholders (1,350) (1,206)
1,686 1,630
Issue of AstraZeneca PLC Ordinary Shares 47 36
Repurchase of AstraZeneca PLC Ordinary Shares (1,154) (1,190)
Foreign exchange adjustments on consolidation, net of tax 1,427 1,110
Net addition to Shareholders' funds 2,006 1,586
Shareholders' funds at end of year 13,178 11,172
5 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 31 Dec
2003 flow non-cash movements 2003
$m $m $m $m $m
Loans due after one year (328) 25 - - (303)
Current instalments of loans (314) 320 - (6) -
Total loans (642) 345 - (6) (303)
Short-term investments 3,962 (771) - 27 3,218
Cash 726 (55) - 62 733
Short-term borrowings and overdrafts (202) 51 - (1) (152)
4,486 (775) - 88 3,799
Net cash funds 3,844 (430) - 82 3,496
Issue of AstraZeneca PLC Ordinary Shares (47)
Repurchase of AstraZeneca PLC Ordinary 1,154
Shares
Net cash inflow before management of 677
liquid resources and financing
6 FULL YEAR TERRITORIAL SALES ANALYSIS
% Growth
Full Year Full Year
2003 2002 Constant
$m $m Actual Currency
US 8,747 9,351 (6) (6)
Canada 712 570 25 14
North America 9,459 9,921 (5) (6)
France 1,454 1,140 28 9
UK 532 623 (15) (23)
Germany 877 699 25 6
Italy 925 765 21 2
Sweden 304 285 7 (10)
Europe others 2,617 2,183 20 4
Total Europe 6,709 5,695 18 2
Japan 1,189 977 22 14
Rest of World 1,492 1,248 20 18
Total 18,849 17,841 6 -
7 FOURTH QUARTER TERRITORIAL SALES ANALYSIS
% Growth
4th 4th
Quarter Quarter
2003 2002 Constant
$m $m Actual Currency
US 2,044 2,564 (20) (20)
Canada 193 147 31 12
North America 2,237 2,711 (17) (18)
France 396 320 24 6
UK 138 147 (6) (11)
Germany 254 196 30 11
Italy 245 214 14 (3)
Sweden 75 75 - (16)
Europe others 738 576 28 12
Total Europe 1,846 1,528 21 5
Japan 356 314 13 3
Rest of World 436 348 25 14
Total 4,875 4,901 (1) (8)
8 FULL YEAR PRODUCT SALES ANALYSIS
World US
Full Year Full Year Constant Full Year
2003 2002 Actual Currency 2003 Actual
$m $m Growth Growth $m Growth
% % %
Gastrointestinal:
Losec 2,565 4,623 (45) (49) 867 (70)
Nexium 3,302 1,978 67 62 2,477 62
Others 76 63 21 13 28 40
Total Gastrointestinal 5,943 6,664 (11) (16) 3,372 (23)
Cardiovascular:
Zestril 478 877 (45) (50) 97 (79)
Seloken 1,280 901 42 38 909 47
Atacand 750 569 32 21 263 28
Plendil 540 489 10 5 237 13
Tenormin 342 370 (8) (15) 19 (63)
Crestor 129 - n/m n/m 62 n/m
Others 391 363 8 (4) 18 38
Total Cardiovascular 3,910 3,569 10 3 1,605 3
Respiratory:
Pulmicort 968 812 19 12 509 41
Rhinocort 364 299 22 19 269 27
Symbicort 549 299 84 61 - -
Accolate 107 144 (26) (28) 71 (32)
Oxis 120 120 - (12) - -
Others 153 144 6 (6) - -
Total Respiratory 2,261 1,818 24 15 849 26
Oncology:
Zoladex 869 794 9 - 174 (18)
Casodex 854 644 33 22 212 18
Nolvadex 178 480 (63) (66) 41 (88)
Arimidex 519 331 57 46 197 47
Iressa 228 67 240 227 102 n/m
Faslodex 77 35 120 120 75 114
Others 18 18 - (6) - -
Total Oncology 2,743 2,369 16 8 801 (11)
Neuroscience:
Seroquel 1,487 1,145 30 27 1,134 22
Zomig 349 328 6 (1) 163 (8)
Diprivan 458 443 3 (2) 230 6
Local anaesthetics 466 432 8 - 106 (6)
Others 73 70 4 (7) 18 (14)
Total Neuroscience 2,833 2,418 17 12 1,651 14
Infection and Other:
Merrem 346 285 21 16 63 7
Other Products 282 220 28 18 108 77
Total Infection and Other 628 505 24 16 171 43
Salick Health Care 281 233 21 21 281 21
Astra Tech 201 151 33 12 15 36
Marlow Foods* 49 114 n/m n/m 2 n/m
Total 18,849 17,841 6 - 8,747 (6)
* Sales 2003 until disposal n/m not meaningful
9 FOURTH QUARTER PRODUCT SALES ANALYSIS
World US
4th 4th Constant 4th
Quarter Quarter Actual Currency Quarter Actual
2003 2002 Growth Growth 2003 Growth
$m $m % % $m %
Gastrointestinal:
Losec 528 1,115 (53) (58) 82 (88)
Nexium 836 686 22 17 585 12
Others 23 18 28 22 10 43
Total Gastrointestinal 1,387 1,819 (24) (29) 677 (44)
Cardiovascular:
Zestril 136 144 (6) (15) 32 (30)
Seloken 246 263 (6) (10) 144 (21)
Atacand 207 160 29 18 66 20
Plendil 157 139 13 8 81 29
Tenormin 96 95 1 (8) 5 (50)
Crestor 41 - n/m n/m 6 n/m
Others 107 93 15 2 5 (600)
Total Cardiovascular 990 894 11 3 339 (5)
Respiratory:
Pulmicort 294 237 24 17 161 34
Rhinocort 92 76 21 17 67 24
Symbicort 172 105 64 43 - -
Accolate 31 52 (40) (42) 22 (46)
Oxis 29 29 - (10) - -
Others 43 38 13 - - -
Total Respiratory 661 537 23 14 250 16
Oncology:
Zoladex 239 206 16 5 46 (16)
Casodex 207 184 13 2 25 (46)
Nolvadex 40 138 (71) (74) 1 (99)
Arimidex 147 92 60 47 44 38
Iressa 92 41 124 114 48 n/m
Faslodex 21 16 31 31 20 25
Others 4 4 - - - -
Total Oncology 750 681 10 1 184 (26)
Neuroscience:
Seroquel 428 357 20 17 338 16
Zomig 104 94 11 4 53 2
Diprivan 119 117 2 (3) 60 3
Local anaesthetics 122 121 1 (9) 21 (43)
Others 19 16 19 6 5 -
Total Neuroscience 792 705 12 7 477 7
Infection and Other:
Merrem 104 69 51 41 23 188
Other Products 53 61 (13) (24) 9 (40)
Total Infection and Other 157 130 21 10 32 39
Salick Health Care 81 63 29 29 81 29
Astra Tech 57 43 33 12 4 33
Marlow Foods* - 29 n/m n/m - n/m
Total 4,875 4,901 (1) (8) 2,044 (20)
* Sales 2003 until disposal n/m not meaningful
Convenience Translation of Key Financial Information
2003 2002 2003 2002 2003 2002
For the quarter ended 31 December $m $m £m £m SEKm SEKm
Total Sales 4,875 4,901 2,737 2,751 35,067 35,254
Operating profit before
exceptional items (EI) 849 1,074 477 603 6,107 7,725
Profit before tax on continuing
operations before EI 869 1,081 488 607 6,251 7,776
Net profit for the period 635 428 356 240 4,568 3,079
Earnings per Ordinary Share pre EI $0.38 $0.45 £0.21 £0.25 SEK 2.73 SEK 3.24
2003 2002 2003 2002 2003 2002
For the year ended 31 December $m $m £m £m SEKm SEKm
Total Sales 18,849 17,841 10,581 10,015 135,585 128,334
Operating profit before
exceptional items (EI) 4,111 4,356 2,308 2,445 29,571 31,334
Profit before tax on continuing
operations before EI 4,202 4,387 2,359 2,463 30,226 31,557
Net profit for the year 3,036 2,836 1,704 1,592 21,839 20,400
Basic earnings per Ordinary
Share $1.78 $1.64 £1.00 £0.92 SEK12.80 SEK 11.80
Earnings per Ordinary Share pre
EI $1.78 $1.84 £1.00 £1.03 SEK12.80 SEK13.24
Dividend per Ordinary Share $0.795 $0.70 45.3p 43.2p SEK 5.98 SEK 6.20
Net cash inflow from operating
activities 4,226 5,593 2,372 3,140 30,398 40,232
Decrease in cash (4) (22) (2) (12) (29) (158)
Shareholders' funds - equity
interests 31 December 13,178 11,172 7,397 6,271 94,792 80,362
Sterling (£) and Swedish krona (SEK) equivalents are shown for convenience and
have been calculated using the current period end rates of $1= £0.561340 and $1=
SEK 7.1932, 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 11,
12 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 2002
Annual Report and Form 20-F.
2003 2002
Income attributable to Shareholders $m $m
Net income for the year under UK GAAP 3,036 2,836
Adjustments to conform to US GAAP
Purchase accounting adjustments (including goodwill and intangibles)
- deemed acquisition of Astra
- amortisation and other acquisition adjustments (952) (864)
- others 59 55
Capitalisation, less disposals and amortisation of interest 17 46
Deferred taxation
- on fair value of Astra 266 239
- others (91) (99)
Pension and other post-retirement benefits expense (43) (46)
Software costs capitalised (18) (46)
Share based compensation (12) 33
Fair value of derivative financial instruments 10 93
Deferred income recognition 14 61
Unrealised losses on foreign exchange and others (18) (1)
Net income in accordance with US GAAP 2,268 2,307
Net income per Ordinary Share under US GAAP (basic) $1.33 $1.33
Net income per Ordinary Share under US GAAP (diluted) $1.33 $1.33
RECONCILIATION TO UNITED STATES ACCOUNTING PRINCIPLES
31 Dec 31 Dec
2003 2002
Shareholders' equity $m $m
Shareholders' equity under UK GAAP 13,178 11,172
Adjustment to conform to US GAAP
Purchase accounting adjustments (including goodwill and intangibles)
- deemed acquisition of Astra
- goodwill 14,311 12,692
- tangible and intangible fixed assets 7,661 7,707
- others 145 86
Capitalisation, less disposals and amortisation of interest 255 238
Deferred taxation
- on fair value of Astra (2,313) (2,305)
- others (207) (159)
Dividend 914 808
Pension and other post retirement benefits expense (534) (295)
Software costs capitalised 46 64
Fair value of derivative financial instruments 109 99
Deferred income recognition - (14)
Others 89 90
Shareholders' equity in accordance with US GAAP 33,654 30,183
Shareholder Information
ANNOUNCEMENTS AND MEETINGS
Announcement of first quarter 2004 results 29 April 2004
Annual General Meeting 2004 29 April 2004
Announcement of second quarter and half year 2004 results 22 July 2004
Annual Business Review 2004 6 October 2004
Announcement of third quarter and nine months 2004 21 October 2004
results
DIVIDENDS
The record date for the first interim dividend paid on 6 October 2003 (in the
UK, Sweden and the US) was 22 August 2003. Ordinary Shares traded ex-dividend
on the London and Stockholm Stock Exchanges from 20 August 2003. ADRs traded
ex-dividend on the New York Stock Exchange from the same date.
The record date for the second interim dividend for 2003 payable on 6 April 2004
(in the UK, Sweden and the US) will be 20 February 2004. Ordinary Shares will
trade ex-dividend on the London and Stockholm Stock Exchanges from 18 February
2004. 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 September
Second interim Announced in January and paid in March
TRADEMARKS
The following brand names used in this preliminary announcement are trademarks
of the AstraZeneca group of companies:
Accolate Arimidex Astra Tech Atacand Casodex Crestor Diprivan Exanta
Faslodex Iressa Losec Nexium Nolvadex Oxis Plendil Prilosec Pulmicort
Pulmicort Respules Rhinocort Rhinocort Aqua Seloken Seroquel Symbicort
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
UK
BN99 6DA
Tel: +44 (0)121 415 7033 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 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, 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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