Final Results - part 2 of 3
AstraZeneca PLC
27 January 2005
Consolidated Profit & Loss Account For Continuing Operations
2004 2003
For the year ended 31 December $m $m
Sales 21,426 18,849
Cost of sales (5,150) (4,469)
Distribution costs (177) (162)
Research and development (3,803) (3,451)
Selling, general and administrative expenses (7,841) (6,856)
Other operating income 315 200
Operating profit before exceptional items 4,770 4,111
Exceptional items charged to operating profit - -
Operating profit 4,770 4,111
Profits on sale of interest in joint venture 219 -
Net interest and dividend income 96 91
Profit on ordinary activities before taxation 5,085 4,202
Profit on ordinary activities before taxation before exceptional 4,866 4,202
items
Exceptional items 219 -
Taxation (1,254) (1,143)
Profit on ordinary activities after taxation 3,831 3,059
Profit on ordinary activities after taxation before exceptional 3,545 3,059
items
Exceptional items 286 -
Attributable to minorities (18) (23)
Net profit for the year 3,813 3,036
Dividends to shareholders (1,555) (1,350)
Earnings per Ordinary Share before exceptional items $2.11 $1.78
Earnings per Ordinary Share $2.28 $1.78
Diluted earnings per Ordinary Share $2.28 $1.78
Weighted average number of Ordinary Shares in issue (millions) 1,673 1,709
Diluted average number of Ordinary Shares in issue (millions) 1,675 1,712
Consolidated Profit & Loss Account For Continuing Operations
2004 2003
For the quarter ended 31 December $m $m
Sales 5,799 4,875
Cost of sales (1,526) (1,057)
Distribution costs (45) (46)
Research and development (963) (1,042)
Selling, general and administrative expenses (2,030) (1,949)
Other operating income 84 68
Operating profit before exceptional items 1,319 849
Exceptional items charged to operating profit - -
Operating profit 1,319 849
Profits on sale of interest in joint venture - -
Net interest and dividend income 26 20
Profit on ordinary activities before taxation 1,345 869
Profit on ordinary activities before taxation before exceptional 1,345 869
items
Exceptional items - -
Taxation (370) (226)
Profit on ordinary activities after taxation 975 643
Profit on ordinary activities after taxation before exceptional 975 643
items
Exceptional items - -
Attributable to minorities (7) (8)
Net profit for the period 968 635
Dividends to shareholders (1,061) (914)
Earnings per Ordinary Share before exceptional items $0.59 $0.38
Earnings per Ordinary Share $0.59 $0.38
Diluted earnings per Ordinary Share $0.59 $0.38
Weighted average number of Ordinary Shares in issue (millions) 1,654 1,699
Diluted average number of Ordinary Shares in issue (millions) 1,656 1,701
Consolidated Balance Sheet
2004 2003
At 31 December $m $m
Fixed assets
Tangible fixed assets 8,083 7,536
Goodwill and intangible assets 2,826 2,884
Fixed asset investments 267 220
11,176 10,640
Current assets
Stocks 3,020 3,022
Debtors 6,274 5,960
Cash and short-term investments 5,146 3,951
14,440 12,933
Total assets 25,616 23,573
Creditors due within one year
Short-term borrowings and current instalments of loans (142) (152)
Other creditors (7,640) (7,543)
(7,782) (7,695)
Net current assets 6,658 5,238
Total assets less current liabilities 17,834 15,878
Creditors due after more than one year
Loans (1,030) (303)
Other creditors (78) (52)
Provisions for liabilities and charges (2,207) (2,266)
(3,315) (2,621)
Net assets 14,519 13,257
Capital and reserves
Shareholders' funds - equity interests 14,418 13,178
Minority equity interests 101 79
Shareholders' funds and minority interests 14,519 13,257
Statement of Total Recognised Gains & Losses
2004 2003
For the year ended 31 December $m $m
Net profit for the financial year 3,813 3,036
Foreign exchange adjustments on consolidation, net of tax 1,092 1,427
Translation differences on foreign currency borrowings - -
Tax on translation differences on foreign currency borrowings - -
Total recognised gains and losses for the financial year 4,905 4,463
Consolidated Cash Flow Statement
2004 2003
For the year ended 31 December $m $m
Cash flow from operating activities
Operating profit before exceptional items 4,770 4,111
Depreciation, amortisation and impairment 1,268 1,290
Increase in working capital (9) (1,101)
Other non-cash movements 40 317
Net cash inflow from operating activities before exceptional
items 6,069 4,617
Outflow related to exceptional items (8) (391)
Net cash inflow from operating activities 6,061 4,226
Returns on investments and servicing of finance 58 76
Tax paid (1,246) (886)
Capital expenditure and financial investment (1,296) (1,597)
Acquisitions and disposals 355 80
Equity dividends paid to Shareholders (1,378) (1,222)
Net cash inflow before management of liquid resources and
financing 2,554 677
Management of liquid resources
Net movement in short-term investments and fixed deposits (862) 771
Financing (1,383) (1,452)
Increase/(decrease) in cash in the year 309 (4)
Reconciliation of Cash Flow to Net Cash Funds
2004 2003
For the year ended 31 December $m $m
Net funds at 1 January 3,496 3,844
Net cash inflows before management of liquid resources and
financing and dividends 3,932 1,899
Net cash outflows from share issues and repurchases and dividends (3,488) (2,329)
Exchange 34 82
Net funds at 31 December 3,974 3,496
Notes to the Preliminary Announcement
1 BASIS OF PREPARATION AND ACCOUNTING POLICIES
The results for the full year ended 31 December 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
significant effect on net profit or shareholders' funds. The information
contained in Note 5 below updates the disclosures concerning legal proceedings
in the Company's Annual Report and Form 20-F Information 2003 and the Third
Quarter and Nine Months Results 2004.
The results for the year ended 31 December 2004 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 2004, 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 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 is required to adopt International Financial Reporting Standards
(IFRS) and International Accounting Standards (IAS) for financial reporting from
2005 onwards. The Group's first results reported under IFRS/IAS will be the
interim results for Q1 2005.
A reconciliation of the impact on profit on ordinary activities after taxation
and net assets is shown below.
Reconciliation of profit Net Assets
2004 2003 2004 2003
$m $m $m $m
UK GAAP 3,831 3,059 14,519 13,257
Share-based payments (167) (136) (1) 19
Employee benefits - (15) (1,435) (1,242)
Business combinations 49 59 106 57
Financial instruments (128) (16) 28 134
Income tax 66 82 128 (8)
Dividends - - 1,061 914
Other 19 3 112 78
IFRS/IAS 3,670 3,036 14,518 13,209
More details of the impact of IFRS/IAS on the Group's financial performance are
available at www.astrazeneca.com. Details of the impact on financial results
for 2003 and the first six months of 2004 were made available in October 2004.
3 RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
2004 2003
For the year ended 31 December $m $m
Shareholders' funds at beginning of year 13,178 11,172
Net profit for the year 3,813 3,036
Dividends to Shareholders (1,555) (1,350)
2,258 1,686
Issue of AstraZeneca PLC Ordinary Shares 102 47
Repurchase of AstraZeneca PLC Ordinary Shares (2,212) (1,154)
Foreign exchange adjustments on consolidation, net of tax 1,092 1,427
Net addition to Shareholders' funds 1,240 2,006
Shareholders' funds at end of year 14,418 13,178
4 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
2004 flow non-cash movements 2004
$m $m $m $m $m
Loans due after one year (303) (725) - (2) (1,030)
Current instalments of loans - - - - -
Total loans (303) (725) - (2) (1,030)
Short-term investments 3,218 862 - 11 4,091
Cash 733 296 - 26 1,055
Overdrafts (152) 13 - (1) (140)
Short-term borrowings - (2) - - (2)
3,799 1,169 - 36 5,004
Net cash funds 3,496 444 - 34 3,974
Issue of AstraZeneca PLC Ordinary Shares (102)
Repurchase of AstraZeneca PLC Ordinary
Shares 2,212
Net cash inflow before management of
liquid resources and financing 2,554
5 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 Third Quarter and Nine Months Results 2004.
Matters previously disclosed in respect of the third quarter of 2004
LosecTM / PrilosecTM (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.
PlendilTM (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 PlendilTM (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 case in 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 PlendilTM 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-XLTM (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-XLTM 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-XLTM 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-XLTM 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
PrilosecTM and NexiumTM at a regional Health Maintenance Organization (HMO) and
a national Pharmacy Benefits Manager (PBM). AstraZeneca intends to co-operate
fully with these document requests.
Matters disclosed in respect of the fourth quarter of 2004
NexiumTM (esomeprazole)
AstraZeneca entities have been sued in state courts in the US in purported
representative and class actions involving the marketing of NexiumTM
(esomeprazole). These actions generally allege that AstraZeneca's promotion and
advertising of NexiumTM to physicians and consumers is unfair, unlawful and
deceptive conduct, particularly as the promotion relates to comparisons of
NexiumTM with PrilosecTM. They also allege that AstraZeneca's conduct relating
to the pricing of NexiumTM was unfair, unlawful and deceptive. The plaintiffs
allege claims under various state consumer protection, unfair practices and
false advertising laws. The plaintiffs in these cases seek remedies that
include restitution, disgorgement of profits, damages, punitive damages,
injunctive relief, attorneys' fees and costs of suit.
In October 2004, the first action was brought in the Superior Court of the State
of California for the County of Los Angeles by the AFL-CIO, two unincorporated
associations and an individual on behalf of themselves, the general public and a
class of California consumers, third party payers, cash payers and those making
co-pay. A second action has been filed in the same court on behalf of a similar
putative class of consumers. Actions making similar allegations were filed on
behalf of a putative class of consumers in the Circuit Court of Searcy County,
Arkansas and on behalf of a putative class of third party payers in the Superior
Court of the State of Delaware in and for New Castle County.
In addition, in December 2004, AstraZeneca received a pre-litigation demand from
claimants in Massachusetts who allege similar claims under Massachusetts law on
behalf of themselves and a proposed class of NexiumTM purchasers in
Massachusetts.
AstraZeneca denies the allegations and is vigorously defending each of these
actions.
In October 2004, AstraZeneca LP filed suit in the US District Court for the
District of Delaware seeking declaratory judgement that its 'Better is Better'
campaign for NexiumTM (esomeprazole) is not false or misleading advertising in
violation of section 43(a) of the Lanham Act, a federal statute governing false
advertising claims. The action was taken in response to a letter from TAP
Pharmaceuticals, Inc. demanding that AstraZeneca immediately withdraw the
television commercial and other components of the NexiumTM direct-to-consumer
advertising campaign on the basis that they allegedly constitute violations of
the statute. In November 2004, TAP requested expedited consideration of the
case by filing a motion for a preliminary injunction. In December 2004, the
court held a hearing on this motion and denied the request for a preliminary
injunction. A trial date has been scheduled for April 2006.
PlendilTM (felodipine)
In November 2004, the District Court entered an order of dismissal in the patent
infringement proceedings with Zenith/IVAX described above, reflecting the
parties' agreement that AstraZeneca dismiss its claim of infringement and Zenith
/IVAX dismiss its counterclaim of invalidity.
Toprol-XLTM (metoprolol succinate)
In December 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 (ANDA) with
the FDA seeking approval to market a generic form of Toprol-XLTM in the 100mg
and 200mg doses.
As disclosed in the Company's Third Quarter and Nine Months Results 2004, all of
the patent litigation relating to Toprol-XLTM against KV, Andrx and Eon has been
consolidated for pre-trial discovery purposes and motion practice in the US
District Court for the Eastern District of Missouri. The defendants filed a
motion for summary judgement in December 2004 alleging that the Toprol-XLTM
patents are invalid due to double patenting. Briefing is ongoing. AstraZeneca
has decided to file a terminal disclaimer of the Toprol-XLTM patents-in-suit
over one of the other patents raised by the defendants, which will result in a
revision of the expiration date of the Toprol-XLTM patents-in-suit from March
2008 to September 2007. In any event, discovery and motion practice are
expected to be active through at least the first half of 2005. No trial date
has been set in the consolidated proceedings. Under the ANDA statute, the FDA
may not approve KV's product before September 2005, Andrx's product before June
2006 or Eon's product before August 2006, unless there is an earlier adverse
court decision.
AstraZeneca maintains that its patents are valid, enforceable and infringed by
these KV, Andrx and Eon products.
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.
6 FULL YEAR TERRITORIAL SALES ANALYSIS
% Growth
Full Year Full Year
2004 2003 Constant
$m $m Actual Currency
US 9,631 8,747 10 10
Canada 876 712 23 14
North America 10,507 9,459 11 10
France 1,597 1,454 10 (2)
UK 589 532 11 -
Germany 994 877 13 2
Italy 1,082 925 17 5
Sweden 298 304 (2) (12)
Europe others 3,089 2,617 18 8
Total Europe 7,649 6,709 14 3
Japan 1,430 1,189 20 11
Rest of World 1,840 1,492 23 17
Total 21,426 18,849 14 9
7 FOURTH QUARTER TERRITORIAL SALES ANALYSIS
% Growth
4th 4th
Quarter Quarter
2004 2003 Constant
$m $m Actual Currency
US 2,657 2,044 30 30
Canada 225 193 17 11
North America 2,882 2,237 29 29
France 389 396 (2) (9)
UK 157 138 14 5
Germany 277 254 9 2
Italy 273 245 11 4
Sweden 76 75 1 (4)
Europe others 816 738 11 4
Total Europe 1,988 1,846 8 1
Japan 412 356 16 14
Rest of World 517 436 19 18
Total 5,799 4,875 19 16
8 FULL YEAR PRODUCT SALES ANALYSIS
World US
Full Year Full Year Constant Full Year
2004 2003 Actual Currency 2004 Actual
$m $m Growth Growth $m Growth
% % %
Gastrointestinal:
Losec 1,947 2,565 (24) (30) 366 (58)
Nexium 3,883 3,302 18 15 2,716 10
Others 88 76 16 9 33 18
Total Gastrointestinal 5,918 5,943 - (4) 3,115 (8)
Cardiovascular:
Seloken/Toprol-XL 1,387 1,280 8 6 977 7
Zestril 440 478 (8) (15) 69 (29)
Atacand 879 750 17 10 252 (4)
Plendil 455 540 (16) (20) 166 (30)
Tenormin 368 342 8 - 35 84
Crestor 908 129 n/m n/m 543 n/m
Others 340 391 (13) (20) 14 (22)
Total Cardiovascular 4,777 3,910 22 17 2,056 28
Respiratory:
Pulmicort 1,050 968 8 4 576 13
Rhinocort 361 364 (1) (3) 260 (3)
Symbicort 797 549 45 32 - -
Accolate 116 107 8 6 84 18
Oxis 101 120 (16) (24) - -
Others 158 153 3 (5) - -
Total Respiratory 2,583 2,261 14 8 920 8
Oncology:
Casodex 1,012 854 19 11 232 9
Zoladex 917 869 6 (1) 152 (13)
Arimidex 811 519 56 48 300 52
Iressa 389 228 71 65 176 73
Faslodex 99 77 29 28 81 8
Nolvadex 134 178 (25) (31) 2 (95)
Others 14 18 (22) (28) - -
Total Oncology 3,376 2,743 23 16 943 18
Neuroscience:
Seroquel 2,027 1,487 36 33 1,504 33
Zomig 356 349 2 (3) 147 (10)
Diprivan 500 458 9 5 264 15
Local anaesthetics 542 466 16 8 131 24
Others 71 73 (3) (10) 20 11
Total Neuroscience 3,496 2,833 23 19 2,066 25
Infection and Other:
Merrem 423 346 22 15 68 8
Other Products 293 282 4 (3) 140 30
Total Infection and Other 716 628 14 7 208 21
Salick Health Care 304 281 8 8 304 8
Astra Tech 256 201 27 16 19 27
Marlow Foods - 49 - - - -
Total 21,426 18,849 14 9 9,631 10
n/m not meaningful
9 FOURTH QUARTER PRODUCT SALES ANALYSIS
World US
4th 4th Constant 4th
Quarter Quarter Actual Currency Quarter Actual
2004 2003 Growth Growth 2004 Growth
$m $m % % $m %
Gastrointestinal:
Losec 446 528 (16) (19) 79 (4)
Nexium 1,106 836 32 30 785 34
Others 24 23 4 - 11 10
Total Gastrointestinal 1,576 1,387 14 11 875 29
Cardiovascular:
Seloken/Toprol-XL 381 246 55 53 269 87
Zestril 113 136 (17) (20) 21 (34)
Atacand 240 207 16 12 63 (5)
Plendil 94 157 (40) (42) 26 (68)
Tenormin 97 96 1 (2) 9 80
Crestor 312 41 n/m n/m 196 n/m
Others 84 107 (21) (24) 2 (60)
Total Cardiovascular 1,321 990 33 30 586 73
Respiratory:
Pulmicort 313 294 6 4 188 17
Rhinocort 93 92 1 - 68 1
Symbicort 219 172 27 20 - -
Accolate 32 31 3 3 24 9
Oxis 25 29 (14) (17) - -
Others 40 43 (7) (14) - -
Total Respiratory 722 661 9 6 280 12
Oncology:
Casodex 276 207 33 29 63 152
Zoladex 242 239 1 (2) 34 (26)
Arimidex 233 147 59 54 83 89
Iressa 80 92 (13) (14) 17 (65)
Faslodex 26 21 24 24 19 (5)
Nolvadex 35 40 (13) (13) - (100)
Others 3 4 (25) (25) - -
Total Oncology 895 750 19 16 216 17
Neuroscience:
Seroquel 562 428 31 29 412 22
Zomig 89 104 (14) (17) 35 (34)
Diprivan 126 119 6 4 63 5
Local anaesthetics 144 122 18 14 37 76
Others 17 19 (11) (11) 5 -
Total Neuroscience 938 792 18 16 552 16
Infection and Other:
Merrem 113 104 9 5 14 (39)
Other Products 86 53 62 47 50 n/m
Total Infection and Other 199 157 27 19 64 100
Salick Health Care 78 81 (4) (4) 78 (4)
Astra Tech 70 57 23 16 6 50
Marlow Foods - - - - - -
Total 5,799 4,875 19 16 2,657 30
n/m not meaningful
Convenience Translation of Key Financial Information
2004 2003 2004 2003 2004 2003
For the quarter ended 31 December $m $m £m £m SEKm SEKm
Total Sales 5,799 4,875 3,010 2,737 38,357 35,067
Operating profit before
exceptional items (EI) 1,319 849 685 477 8,724 6,107
Profit before tax on continuing
operations before EI 1,345 869 698 488 8,896 6,251
Net profit for the period 968 635 502 356 6,403 4,568
Earnings per Ordinary Share pre EI $0.59 $0.38 £0.31 £0.21 SEK 3.90 SEK 2.73
2004 2003 2004 2003 2004 2003
For the year ended 31 December $m $m £m £m SEKm SEKm
Total Sales 21,426 18,849 11,122 10,581 141,720 135,585
Operating profit before
exceptional items (EI) 4,770 4,111 2,476 2,308 31,551 29,571
Profit before tax on continuing
operations before EI 4,866 4,202 2,526 2,359 32,186 30,226
Net profit for the year 3,813 3,036 1,979 1,704 25,221 21,839
Basic earnings per Ordinary Share $2.28 $1.78 £1.18 £1.00 SEK15.08 SEK12.80
Earnings per Ordinary Share pre EI $2.11 $1.78 £1.10 £1.00 SEK13.96 SEK12.80
Dividend per Ordinary Share $0.94 $0.795 50.3p 45.3p SEK 6.697 SEK5.980
Net cash inflow from operating
activities 6,061 4,226 3,146 2,372 40,083 30,398
Increase/(decrease) in cash 309 (4) 160 (2) 2,044 (29)
Shareholders' funds - equity
interests 31 December 14,418 13,178 7,484 7,397 95,366 94,792
Sterling (£) and Swedish krona (SEK) equivalents are shown for convenience and
have been calculated using the current period end rates of $1= £0.519090 and $1=
SEK 6.61440, 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 2003
Annual Report and Form 20-F.
2004 2003
$m $m
Income attributable to Shareholders
Net income for the year under UK GAAP 3,813 3,036
Adjustments to conform to US GAAP
Purchase accounting adjustments (including goodwill and intangibles)
- deemed acquisition of Astra
- amortisation and other acquisition adjustments (1,014) (952)
- others 49 59
Capitalisation, less disposals and amortisation of interest (1) 17
Deferred taxation
- on fair value of Astra 283 266
- others 90 (91)
Pension and other post-retirement benefits expense (52) (43)
Software costs capitalised 6 (18)
Share based compensation 11 (12)
Fair value of financial instruments (94) 10
Deferred income recognition - 14
In-process research and development (31) -
Unrealised losses on foreign exchange and others (9) (18)
Net income in accordance with US GAAP 3,051 2,268
Net income per Ordinary Share under US GAAP (basic) $1.82 $1.33
Net income per Ordinary Share under US GAAP (diluted) $1.82 $1.33
RECONCILIATION TO UNITED STATES ACCOUNTING PRINCIPLES
31 Dec 31 Dec
2004 2003
Shareholders' equity $m $m
Shareholders' equity under UK GAAP 14,418 13,178
Adjustment to conform to US GAAP
Purchase accounting adjustments (including goodwill and intangibles)
- deemed acquisition of Astra
- goodwill 15,099 14,311
- tangible and intangible fixed assets 6,988 7,661
- others 206 145
Capitalisation, less disposals and amortisation of interest 254 255
Deferred taxation
- on fair value of Astra (2,134) (2,313)
- others (92) (207)
Dividend 1,061 914
Pension and other post retirement benefits expense (573) (534)
Software costs capitalised 52 46
Fair value of financial instruments 2 109
Deferred income recognition - -
Others 33 89
Shareholders' equity in accordance with US GAAP 35,314 33,654
Shareholder Information
ANNOUNCEMENTS AND MEETINGS
Announcement of first quarter 2005 results 28 April 2005
Annual General Meeting 2005 28 April 2005
Announcement of second quarter and half year 2005 results 28 July 2005
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 preliminary announcement are trademarks
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
Single Inhaler Therapy Symbicort Tenormin Toprol-XL Zestril Zoladex Zomig
ADDRESSES FOR CORRESPONDENCE
Registrar and Depositary Registered Office Swedish Securities
Transfer Office for ADRs Registration Centre
The AstraZeneca Registrar JPMorgan Chase Bank 15 Stanhope Gate VPC AB
Lloyds TSB Registrars PO Box 43013 London PO Box 7822
The Causeway Providence W1K 1LN S-103 97 Stockholm
Worthing RI 02940-3013 UK Sweden
West Sussex US
BN99 6DA
Tel (in UK): 0870 600 3956 Tel (toll free in the US): Tel: +44 (0)20 7304 5000 Tel: +46 (0)8 402 9000
Tel (outside UK): +44 (0)121 415 888 697 8018
7033 Tel: +1 (781) 575 4328
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 Announcement 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 those
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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