Interim Results - Part 2 of 2
AstraZeneca PLC
27 July 2006
Consolidated Income Statement
2006 2005
For the six months ended 30 June $m $m
Sales 12,805 11,875
Cost of sales (2,642) (2,723)
Distribution costs (112) (104)
Research and development (1,816) (1,725)
Selling, general and administrative costs (4,405) (4,236)
Other operating income 277 84
Operating profit 4,107 3,171
Finance income 400 316
Finance expense (254) (252)
Profit before tax 4,253 3,235
Taxation (1,227) (968)
Profit for the period 3,026 2,267
Attributable to:
Equity holders of the Company 3,024 2,259
Minority interests 2 8
3,026 2,267
Basic earnings per $0.25 Ordinary Share $1.92 $1.38
Diluted earnings per $0.25 Ordinary Share $1.91 $1.38
Weighted average number of Ordinary Shares in issue (millions) 1,577 1,634
Diluted average number of Ordinary Shares in issue (millions) 1,581 1,634
Dividends declared in the period 1,453 1,061
Consolidated Income Statement
2006 2005
For the quarter ended 30 June $m $m
Sales 6,625 6,132
Cost of sales (1,391) (1,313)
Distribution costs (58) (54)
Research and development (955) (860)
Selling, general and administrative costs (2,290) (2,229)
Other operating income 200 42
Operating profit 2,131 1,718
Finance income 199 197
Finance expense (121) (166)
Profit before tax 2,209 1,749
Taxation (607) (525)
Profit for the period 1,602 1,224
Attributable to:
Equity holders of the Company 1,599 1,219
Minority interests 3 5
1,602 1,224
Basic earnings per $0.25 Ordinary Share $1.02 $0.75
Diluted earnings per $0.25 Ordinary Share $1.01 $0.75
Weighted average number of Ordinary Shares in issue (millions) 1,575 1,628
Diluted average number of Ordinary Shares in issue (millions) 1,580 1,628
Consolidated Balance Sheet
As at As at As at
30 June 31 December 30 June
2006 2005 2005
$m $m $m
ASSETS
Non-current assets
Property, plant and equipment 7,269 6,985 7,355
Intangible assets, including Goodwill 4,609 2,712 2,696
Other investments 125 256 221
Deferred tax assets 1,405 1,117 1,174
13,408 11,070 11,446
Current assets
Inventories 2,211 2,206 2,663
Trade and other receivables 5,471 4,778 4,725
Other investments 1,020 1,624 398
Income tax receivable 273 183 201
Cash and cash equivalents 6,076 4,979 5,451
15,051 13,770 13,438
Total assets 28,459 24,840 24,884
LIABILITIES
Current liabilities
Interest bearing loans and borrowings (85) (90) (150)
Trade and other payables (6,572) (5,466) (5,496)
Income tax payable (1,748) (1,283) (1,151)
(8,405) (6,839) (6,797)
Non-current liabilities
Interest bearing loans and borrowings (1,046) (1,111) (1,163)
Deferred tax liabilities (1,775) (1,112) (1,163)
Retirement benefit obligations (1,582) (1,706) (1,803)
Provisions (317) (309) (306)
Other payables (325) (72) (82)
(5,045) (4,310) (4,517)
Total liabilities (13,450) (11,149) (11,314)
Net assets 15,009 13,691 13,570
EQUITY
Capital and reserves attributable to equity holders of
the Company
Share capital 392 395 404
Share premium account 1,433 692 584
Other reserves 1,851 1,831 1,892
Retained earnings 11,234 10,679 10,597
14,910 13,597 13,477
Minority equity interests 99 94 93
Total equity 15,009 13,691 13,570
Consolidated Cash Flow Statement
For the six months ended 30 June 2006 2005
$m $m
Cash flows from operating activities
Profit before taxation 4,253 3,235
Finance income and expense (146) (64)
Depreciation and amortisation 588 630
(Increase)/decrease in working capital (352) 131
Other non-cash movements 115 45
Cash generated from operations 4,458 3,977
Interest paid (30) (13)
Tax paid (1,007) (810)
Net cash inflow from operating activities 3,421 3,154
Cash flows from investing activities
Acquisition of business (213) -
Movement in short term investments and fixed deposits 701 776
Purchase of property, plant and equipment (373) (411)
Disposal of property, plant and equipment 16 73
Purchase of intangible assets (331) (38)
Purchase of non-current asset investments (15) (6)
Disposal of non-current asset investments 54 -
Interest received 154 88
Dividends paid by subsidiaries to minority interest (4) (5)
Net cash (outflow)/inflow from investing activities (11) 477
Net cash inflow before financing activities 3,410 3,631
Cash flows from financing activities
Proceeds from issue of share capital 746 34
Repurchase of shares (1,627) (1,182)
Dividends paid (1,442) (1,079)
Movement in short term borrowings - 10
Net cash outflow from financing activities (2,323) (2,217)
Net increase in cash and cash equivalents in the period 1,087 1,414
Cash and cash equivalents at the beginning of the period 4,895 3,927
Exchange rate effects 16 (28)
Cash and cash equivalents at the end of the period 5,998 5,313
Cash and cash equivalents consists of:
Cash and cash equivalents 6,076 5,451
Overdrafts (78) (138)
5,998 5,313
Consolidated Statement of Recognised Income and Expense
For the six months ended 30 June 2006 2005
$m $m
Profit for the period 3,026 2,267
Foreign exchange adjustments on consolidation 454 (968)
Available for sale (losses)/gains taken to equity (20) 14
Actuarial gain/(loss) for the period 119 (125)
Tax on items taken directly to reserves 23 38
Total recognised income and expense for the period 3,602 1,226
Attributable to:
Equity holders of the Company 3,597 1,226
Minority interests 5 -
3,602 1,226
Independent review report to AstraZeneca PLC
Introduction
We have been instructed by the Company to review the financial information
comprising the consolidated income statement, balance sheet, cash flow statement
and statement of recognised income and expense for the six months ended and as
at 30 June 2006 and notes 1 to 4 (set out on pages 12, 14 to 16 and 18 to 21,
respectively). We have read the other information contained in the interim
report and considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.
This report is made solely to the Company in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the Listing
Rules of the Financial Services Authority. Our review has been undertaken so
that we might state to the Company those matters we are required to state to it
in this report and for no other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the Company for
our review work, for this report, or for the conclusions we have reached.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the Directors. The Directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the UK. A review consists
principally of making enquiries of group management and applying analytical
procedures to the financial information and underlying financial data and, based
thereon, assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit performed in
accordance with International Statements on Auditing (UK and Ireland) and
therefore provides a lower level of assurance than an audit. Accordingly, we do
not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2006.
KPMG Audit Plc
Chartered Accountants
8 Salisbury Square, London
27 July 2006
Notes to the Interim Financial Statements
1 BASIS OF PREPARATION AND ACCOUNTING POLICIES
The unaudited financial statements for the six months ended 30 June 2006 have
been prepared in accordance with International Accounting Standards and
International Financial Reporting Standards (collectively 'IFRS') as adopted by
the European Union (EU). Details of the accounting policies applied are those
set out in AstraZeneca PLC's Annual Report and Form 20-F Information 2005.
The information contained in Note 3 updates the disclosures concerning legal
proceedings and contingent liabilities in the Company's Annual Report and Form
20-F Information 2005.
These interim financial statements do not constitute statutory accounts of the
Group within the meaning of Section 240 of the Companies Act 1985. Statutory
accounts for the year ended 31 December 2005 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 NET CASH FUNDS
The table below provides an analysis of net cash funds and a reconciliation of
net cash flow to the movement in net cash funds.
At 1 Jan Cash Acquisitions Non-cash Exchange At 30 June
2006 flow $m movements movements 2006
$m $m $m $m $m
Loans due after 1 year (1,111) - - 65 - (1,046)
Other investments - current 1,624 (701) 157 (58) (2) 1,020
Cash and cash equivalents 4,979 1,081 - - 16 6,076
Overdrafts (84) 6 - - - (78)
Short term borrowings (6) - - - (1) (7)
6,513 386 157 (58) 13 7,011
Net funds 5,402 386 157 7 13 5,965
Non-cash movements in the period consist of fair value adjustments under IAS 39.
3 LEGAL PROCEEDINGS AND COMMITMENTS
AstraZeneca is involved in various legal proceedings considered typical to its
businesses, including litigation relating to employment matters, product
liability, commercial disputes, infringement of intellectual property rights,
the validity of certain patents and securities law. The matters discussed below
constitute the more significant developments since publication of the Company's
Annual Report and Form 20-F Information 2005.
Matters previously disclosed in respect of the first quarter of 2006
LosecTM / PrilosecTM (omeprazole)
In February 2006, in the legal proceedings in Canada involving Apotex described
in AstraZeneca's Annual Report and Form 20-F Information 2005, the Canadian
Federal Court of Appeal upheld a lower court decision that precludes the
issuance of a notice of compliance (marketing approval) in Canada for Apotex's
generic omeprazole magnesium tablet product until the expiry of an AstraZeneca
formulation patent relating to omeprazole in December 2008. This decision does
not affect the continuing proceedings in the Supreme Court of Canada in which
Apotex is appealing a lower court decision to quash Apotex's notice of
compliance (marketing approval) for its generic omeprazole capsule product, nor
does it affect the stay allowing Apotex to continue selling its omeprazole
capsules in Canada pending a decision by the Supreme Court on Apotex's appeal.
NexiumTM (esomeprazole)
As previously disclosed, in March 2006 AstraZeneca commenced wilful infringement
patent litigation in the US District Court for the District of New Jersey
against IVAX Corporation and its affiliates in response to an Abbreviated New
Drug Application filed by IVAX with the US Food and Drug Administration
regarding IVAX's intent to market a generic version of NexiumTM in the US prior
to the expiration of five AstraZeneca patents: 5,714,504; 5,877,192; 6,369,085;
6,428,810; and 6,875,872. The expiration dates for these patents range from
2014 through to 2019.
AstraZeneca has full confidence in and will continue vigorously to defend and
enforce its intellectual property rights protecting NexiumTM.
SeroquelTM (quetiapine fumarate)
Since 2003, AstraZeneca has been served with approximately 130 lawsuits in the
US in which plaintiffs have alleged that they developed diabetes or other
allegedly related injuries, and in some cases pancreatitis, as a result of
taking SeroquelTM and/or other atypical anti-psychotics made by other
pharmaceutical companies. Many of these cases were filed in Missouri in August
2005, days before Missouri's tort reform laws became effective. Eli Lilly, the
maker of olanzapine, is a defendant in the majority of the cases served on
AstraZeneca. Janssen Pharmaceutica and Bristol-Myers Squibb, the makers of other
atypical anti-psychotics, are also defending a number of them.
AstraZeneca has also been served with a putative nationwide class action
complaint, which was filed in federal court in the Southern District of
Illinois. It is very similar in form and content to the complaint filed in the
US District Court for the Middle District of Florida in 2003 (Susan Zehel-Miller
et al. v. AstraZenaca (sic), AstraZenaca Pharmaceuticals LP, (sic)) that sought
certification of a nationwide class of SeroquelTM users and others, including
individuals who were alleged to have developed diabetes as a result of using
SeroquelTM. The federal court in Florida denied certification of the class in
the Zehel-Miller case. In early 2005, after the plaintiffs' efforts in that case
to secure appellate relief failed, the plaintiffs agreed to a voluntary
dismissal of all of their claims with prejudice.
AstraZeneca is also aware of approximately 360 other cases involving SeroquelTM
(and in many instances, other atypical anti-psychotics) and allegations of
diabetes or other allegedly related injuries that have been filed in various
states, but these have not been served.
Recently, two consortia of plaintiffs' lawyers filed motions with the Judicial
Panel on Multidistrict Litigation seeking centralisation of all of the federal
court cases alleging that SeroquelTM caused diabetes or other allegedly related
injuries. AstraZeneca has opposed this motion. The Panel's decision is not
expected before the end of May 2006.
AstraZeneca intends to defend vigorously all of the pending cases relating to
SeroquelTM.
Toprol-XLTM (metoprolol succinate)
Following issuance of the summary judgement decision that the Toprol-XLTM
patents are invalid and unenforceable, AstraZeneca has been served with several
putative class action complaints filed in the US District Court for the District
of Delaware, one such action filed in the US District Court for the District of
Massachusetts and one such action filed in the US District Court for the
Southern District of Florida alleging that AstraZeneca monopolised the market
for metoprolol succinate by filing patent litigation against KV Pharmaceutical
Company, Andrx Pharmaceuticals LLC and Eon Labs Manufacturing Inc. asserting
invalid and unenforceable patents in violation of US anti-trust laws. The
complaints include those by plaintiffs purporting to represent the class of
distributors who purchased Toprol-XLTM directly from AstraZeneca at allegedly
supracompetitive prices and those by plaintiffs purporting to represent the
class of consumers and third party payers who are indirect purchasers of
Toprol-XLTM at allegedly supra-competitive prices. AstraZeneca has appealed the
underlying judgment that the patents are invalid and unenforceable to the US
Court of Appeals for the Federal Circuit. AstraZeneca also denies the
allegations of the anti-trust complaints and will vigorously defend them.
Matters disclosed in respect of the second quarter of 2006
NexiumTM (esomeprazole)
As previously disclosed, AstraZeneca LP filed suit in October 2004 in the US
District Court for the District of Delaware seeking declaratory judgement that
its 'Better is Better' campaign for NexiumTM is not false or misleading
advertising in violation of section 43(a) of the Lanham Act, a federal statute
concerning 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
direct-to-consumer advertising campaign for NexiumTM on the basis that they
allegedly violated the statute. Having denied TAP's request for a preliminary
injunction in December 2004, the court dismissed all of the claims for damages
asserted by TAP in its counterclaims in May 2006 and dismissed most of TAP's
claims for injunctive relief in June 2006.
SeroquelTM (quetiapine fumarate)
In the litigation involving atypical anti-psychotics including SeroquelTM
referred to above, AstraZeneca has now been served with approximately 350
lawsuits in total in the US since 2003 in which plaintiffs have alleged that
they developed diabetes or other allegedly related injuries, and in some cases
pancreatitis, as a result of taking SeroquelTM and/or other atypical
anti-psychotics made by other pharmaceutical companies. AstraZeneca is also
aware of approximately 70 other cases involving SeroquelTM (and in many
instances, other atypical anti-psychotics) and allegations of diabetes or other
allegedly related injuries that have been filed in various states, but these
have not been served.
In July 2006, the Judicial Panel on Multidistrict Litigation agreed to
plaintiffs' requests to consolidate the federal court cases involving Seroquel
TM, selecting the judge recommended by AstraZeneca, Judge Anne Conway, Middle
District of Florida.
Two putative class action complaints involving SeroquelTM and allegations of
diabetes or other allegedly related injuries were recently filed against
AstraZeneca Canada Inc., as well as various affiliates, in the provinces of
Quebec and British Columbia.
AstraZeneca intends to defend vigorously all of the pending cases relating to
SeroquelTM.
ZestrilTM (lisinopril)
In April 2006, the Federal Court of Canada ruled in favour of AstraZeneca and
Merck & Co., Inc. in the patent infringement case brought against Apotex, Inc.
alleging infringement of Merck's lisinopril patent in Canada. The judgment has
been appealed and the appeal is scheduled to be heard in September 2006.
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.
Arrangements with Merck
As described in more detail in the Annual Report and Form 20-F Information 2005,
AstraZeneca has significant arrangements with Merck & Co., Inc. relating to
certain of our products and development compounds. These arrangements include
exit provisions from 2008 onwards and we regularly monitor the value of the
benefits we expect to receive.
The exit provisions are subject to a minimum overall net payment of $3.3 billion
and will offer AstraZeneca unencumbered discretion in its operations in the US
market (except in respect of PrilosecTM and NexiumTM) without the restrictions
of various contractual obligations that are currently imposed as a result of
Merck's interests, together with relief from contingent payment obligations. The
projected value of the benefits to be obtained in 2008 depends on a number of
factors including the future contributions from products that have already been
launched, those that are due to be launched in the US and those that are in
development, together with the further value that AstraZeneca can extract from
greater freedom to operate in the US.
4 HALF YEAR TERRITORIAL SALES ANALYSIS
% Growth
1st Half 1st Half
2006 2005 Constant
$m $m Actual Currency
US 5,959 5,243 14 14
Canada 513 488 5 (2)
North America 6,472 5,731 13 12
France 834 874 (5) 2
UK 400 380 5 12
Germany 580 621 (7) -
Italy 660 609 8 16
Sweden 156 162 (4) 5
Europe others 1,797 1,716 5 12
Total Europe 4,427 4,362 1 8
Japan 691 736 (6) 4
China 156 135 16 14
Rest of World 1,059 911 16 16
Total 12,805 11,875 8 11
5 SECOND QUARTER TERRITORIAL SALES ANALYSIS
% Growth
2nd 2nd
Quarter Quarter
2006 2005
$m $m
Constant
Actual Currency
US 3,077 2,743 12 12
Canada 263 240 10 1
North America 3,340 2,983 12 11
France 419 423 (1) 3
UK 207 192 8 13
Germany 301 306 (2) 2
Italy 346 324 7 11
Sweden 78 82 (5) -
Europe others 904 870 4 8
Total Europe 2,255 2,197 3 7
Japan 387 399 (3) 5
China 84 73 15 12
Rest of World 559 480 16 17
Total 6,625 6,132 8 10
6 HALF YEAR PRODUCT SALES ANALYSIS
World US
1st 1st Actual Constant 1st Half Actual
Half Half Growth Currency Growth
Growth
2006 2005 2006
$m $m % % $m %
Gastrointestinal:
Nexium 2,472 2,259 9 11 1,656 9
Losec/Prilosec 700 865 (19) (16) 100 (24)
Others 33 36 (8) (5) 5 (17)
Total Gastrointestinal 3,205 3,160 1 3 1,761 7
Cardiovascular:
Seloken/Toprol-XL 934 843 11 12 732 20
Crestor 867 590 47 48 491 45
Atacand 530 489 8 12 122 -
Tenormin 161 175 (8) (3) 13 30
Zestril 153 165 (7) (3) 13 N/m
Plendil 142 205 (31) (30) 11 (82)
Others 143 160 (11) (6) 2 -
Total Cardiovascular 2,930 2,627 12 14 1,384 21
Respiratory:
Pulmicort 629 590 7 9 399 19
Symbicort 585 502 17 24 - -
Rhinocort 187 204 (8) (8) 131 (11)
Oxis 44 46 (4) - - -
Accolate 39 41 (5) (5) 27 -
Others 72 81 (11) (7) - -
Total Respiratory 1,556 1,464 6 9 557 9
Oncology:
Arimidex 714 553 29 34 284 27
Casodex 580 564 3 8 140 19
Zoladex 481 494 (3) 2 52 (15)
Iressa 112 140 (20) (16) 8 (78)
Faslodex 91 64 42 45 51 16
Nolvadex 45 60 (25) (20) 2 (33)
Others 6 6 - - - -
Total Oncology 2,029 1,881 8 13 537 10
Neuroscience:
Seroquel 1,656 1,300 27 29 1,210 30
Local anaesthetics 272 262 4 9 49 58
Zomig 196 172 14 17 86 56
Diprivan 161 205 (21) (19) 51 (41)
Others 29 35 (17) (14) 8 (20)
Total Neuroscience 2,314 1,974 17 19 1,404 26
Infection and Other:
Merrem 284 258 10 13 51 6
Other Products 133 189 (30) (26) 65 (42)
Total Infection and Other 417 447 (7) (4) 116 (28)
Aptium Oncology 181 165 10 10 181 10
Astra Tech 173 157 10 17 19 36
Total 12,805 11,875 8 11 5,959 14
7 SECOND QUARTER PRODUCT SALES ANALYSIS
World US
2nd 2nd Actual Constant 2nd Actual
Quarter Quarter Growth Currency Quarter Growth
2006 2005 % Growth 2006 %
$m $m % $m
Gastrointestinal:
Nexium 1,283 1,204 7 8 865 5
Losec/Prilosec 356 438 (19) (17) 45 (38)
Others 15 19 (21) (21) 2 (33)
Total Gastrointestinal 1,654 1,661 - 1 912 2
Cardiovascular:
Seloken/Toprol-XL 478 435 10 11 378 19
Crestor 480 317 51 51 271 47
Atacand 276 254 9 11 64 (3)
Tenormin 85 92 (8) (4) 6 (14)
Zestril 78 78 - 3 7 N/m
Plendil 70 112 (38) (38) 5 (88)
Others 73 82 (11) (7) 1 -
Total Cardiovascular 1,540 1,370 12 13 732 20
Respiratory:
Pulmicort 301 276 9 10 190 17
Symbicort 308 255 21 25 - -
Rhinocort 102 112 (9) (9) 70 (14)
Oxis 22 23 (4) (4) - -
Accolate 21 13 62 62 15 150
Others 37 39 (5) (5) - -
Total Respiratory 791 718 10 12 275 10
Oncology:
Arimidex 379 297 28 31 156 28
Casodex 306 287 7 11 74 32
Zoladex 250 263 (5) (2) 28 (3)
Iressa 62 59 5 8 4 (43)
Faslodex 47 35 34 37 26 8
Nolvadex 24 32 (25) (22) 1 (67)
Others 3 3 - - - -
Total Oncology 1,071 976 10 13 289 20
Neuroscience:
Seroquel 849 667 27 28 620 30
Local anaesthetics 140 135 4 7 25 79
Zomig 103 104 (1) 1 46 -
Diprivan 72 98 (27) (25) 17 (59)
Others 14 18 (22) (22) 4 (20)
Total Neuroscience 1,178 1,022 15 16 712 22
Infection and Other:
Merrem 143 127 13 14 22 16
Other Products 65 92 (29) (25) 32 (42)
Total Infection and Other 208 219 (5) (3) 54 (27)
Aptium Oncology 93 82 13 13 93 13
Astra Tech 90 84 7 11 10 25
Total 6,625 6,132 8 10 3,077 12
Information for US Investors
RECONCILIATION TO UNITED STATES ACCOUNTING PRINCIPLES
The consolidated income statement and balance sheet set out on pages 12 and 14
are prepared in accordance with IASs and IFRSs (collectively 'IFRS') as adopted
by the European Union (EU), which differ in certain material respects from those
accounting principles generally accepted in the United States (US GAAP). The
differences as they apply to AstraZeneca PLC are explained in the Annual Report
and Form 20-F Information 2005. The effects on income and shareholders' equity
of the GAAP differences are shown below.
1st Half 1st Half
Income attributable to Shareholders 2006 2005
$m $m
Net income for the period under IFRS 3,024 2,259
Adjustments to conform to US GAAP
Purchase accounting adjustments:
- amortisation and depreciation (500) (530)
- in-process research and development (504) -
Capitalisation less disposals and amortisation of interest (11) (7)
Pension and other post-retirement benefits (36) (39)
Financial instruments (50) 40
In-licensed development intangibles (97) (5)
Deferred taxation
- on purchase accounting adjustments 139 147
- others (31) 71
Other 32 -
Net income in accordance with US GAAP 1,966 1,936
Net income per Ordinary Share in accordance with US GAAP - basic $1.25 $1.19
Net income per Ordinary Share in accordance with US GAAP - diluted $1.24 $1.19
Shareholders' equity 30 June 30 June
2006 2005
$m $m
Shareholders' equity under IFRS 14,910 13,477
Adjustments to conform to US GAAP
Purchase accounting adjustments:
- goodwill 14,221 13,676
- property, plant and equipment and intangible assets 5,003 5,790
- in-process research and development (426) -
Capitalisation, less disposals and amortisation of interest 230 247
Pension and other post-retirement benefits 1,328 1,528
Financial instruments (44) 69
In-licensed development intangibles (212) (92)
Deferred taxation
- on purchase accounting adjustments (1,575) (1,781)
- others (495) (575)
Other 27 (1)
Shareholders' equity in accordance with US GAAP 32,967 32,338
Shareholder Information
ANNOUNCEMENTS AND MEETINGS
Announcement of third quarter and nine months 2006 26 October 2006
results
Announcement of fourth quarter and full year 2006 results 1 February 2007
DIVIDENDS
The record date for the first interim dividend payable on 18 September 2006 (in
the UK, Sweden and the US) is 11 August 2006. Ordinary shares will trade
ex-dividend on the London and Stockholm Stock Exchanges from 9 August 2006.
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/February and paid in March
TRADEMARKS
The following brand names used in these interim financial statements are
trademarks of the AstraZeneca Group of companies:
Accolate Arimidex Astra Tech Atacand Casodex Crestor Diprivan Faslodex
Iressa Losec Merrem Nexium Nolvadex Oxis Plendil Prilosec Pulmicort
Pulmicort Respules Rhinocort Rhinocort Aqua Seloken Seroquel 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 JP Morgan Service Center London PO Box 7822
The Causeway PO Box 3408 W1K 1LN SE-103 97 Stockholm
Worthing South Hackensack UK Sweden
West Sussex NJ 07606-3408
BN99 6DA US
UK Tel: +44 (0)20 7304 5000 Tel: +46 (0)8 402 9000
Tel (freephone in UK): Tel (toll free in US):
0800 389 1580 888 697 8018
Tel (outside UK): Tel: +1 (201) 680 6630
+44 (0)121 415 7033
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
In order to utilise the 'safe harbour' provisions of the US Private Securities
Litigation Reform Act 1995, we are providing the following cautionary statement:
These interim financial statements contain certain forward-looking statements
about AstraZeneca. Although we believe our expectations are based on reasonable
assumptions, any forward-looking statements may be influenced by factors that
could cause actual outcomes and results to be materially different from those
predicted. We identify the forward-looking statements by using the words '
anticipates', 'believes', 'expects', 'intends' and similar expressions in such
statements. These forward-looking statements are subject to numerous risks and
uncertainties. Important factors that could cause actual results to differ
materially from those contained in forward-looking statements, certain of which
are beyond control, 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; the risk of failure to observe ongoing regulatory oversight; the
risk that new products do not perform as we expect; 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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