Final Results Part 2 of 3

AstraZeneca PLC 01 February 2007 Consolidated Income Statement 2006 2005 For the year ended 31 December $m $m Sales 26,475 23,950 Cost of sales (5,559) (5,356) Distribution costs (226) (211) Research and development (3,902) (3,379) Selling, general and administrative costs (9,096) (8,695) Other operating income and expense 524 193 Operating profit 8,216 6,502 Finance income 888 665 Finance expense (561) (500) Profit before tax 8,543 6,667 Taxation (2,480) (1,943) Profit for the period 6,063 4,724 Attributable to: Equity holders of the Company 6,043 4,706 Minority interests 20 18 6,063 4,724 Basic earnings per $0.25 Ordinary Share $3.86 $2.91 Diluted earnings per $0.25 Ordinary Share $3.85 $2.91 Weighted average number of Ordinary Shares in issue (millions) 1,564 1,617 Diluted average number of Ordinary Shares in issue (millions) 1,570 1,618 Dividends declared in the period 2,649 2,068 Consolidated Income Statement 2006 2005 For the quarter ended 31 December $m $m Sales 7,154 6,286 Cost of sales (1,578) (1,388) Distribution costs (61) (56) Research and development (1,124) (873) Selling, general and administrative costs (2,511) (2,403) Other operating income and expense 123 70 Operating profit 2,003 1,636 Finance income 267 181 Finance expense (167) (128) Profit before tax 2,103 1,689 Taxation (658) (462) Profit for the period 1,445 1,227 Attributable to: Equity holders of the Company 1,432 1,224 Minority interests 13 3 1,445 1,227 Basic earnings per $0.25 Ordinary Share $0.93 $0.77 Diluted earnings per $0.25 Ordinary Share $0.93 $0.77 Weighted average number of Ordinary Shares in issue (millions) 1,540 1,590 Diluted average number of Ordinary Shares in issue (millions) 1,545 1,592 Consolidated Balance Sheet As at 31 December 2006 2005 $m $m ASSETS Non-current assets Property, plant and equipment 7,453 6,985 Intangible assets, including goodwill 4,204 2,712 Other investments 119 256 Deferred tax assets 1,220 1,117 12,996 11,070 Current assets Inventories 2,250 2,206 Trade and other receivables 5,561 4,778 Other investments 657 1,624 Income tax receivable 1,365 183 Cash and cash equivalents 7,103 4,979 16,936 13,770 Total assets 29,932 24,840 LIABILITIES Current liabilities Interest bearing loans and borrowings (136) (90) Trade and other payables (6,334) (5,466) Income tax payable (2,977) (1,283) (9,447) (6,839) Non-current liabilities Interest bearing loans and borrowings (1,087) (1,111) Deferred tax liabilities (1,559) (1,112) Retirement benefit obligations (1,842) (1,706) Provisions (327) (309) Other payables (254) (72) (5,069) (4,310) Total liabilities (14,516) (11,149) Net assets 15,416 13,691 EQUITY Capital and reserves attributable to equity holders of the Company Share capital 383 395 Share premium account 1,671 692 Other reserves 1,902 1,831 Retained earnings 11,348 10,679 15,304 13,597 Minority equity interests 112 94 Total equity 15,416 13,691 Consolidated Cash Flow Statement For the year ended 31 December 2006 2005 $m $m Cash flows from operating activities Profit before taxation 8,543 6,667 Finance income and expense (327) (165) Depreciation, amortisation and impairment 1,345 1,327 Decrease in working capital 108 332 Other non-cash movements 263 220 Cash generated from operations 9,932 8,381 Interest paid (70) (32) Tax paid (2,169) (1,606) Net cash inflow from operating activities 7,693 6,743 Cash flows from investing activities Acquisition of businesses* (1,148) - Movement in short term investments and fixed deposits* 1,120 (491) Purchase of property, plant and equipment (794) (810) Disposal of property, plant and equipment 35 87 Purchase of intangible assets (545) (157) Disposal of intangible assets* 661 - Purchase of non-current asset investments (17) (12) Disposal of non-current asset investments 68 - Interest received 352 206 Payments made by subsidiaries to minority interest (4) (5) Net cash outflow from investing activities (272) (1,182) Net cash inflow before financing activities* 7,421 5,561 Cash flows from financing activities Proceeds from issue of share capital 985 143 Repurchase of shares (4,147) (3,001) Dividends paid (2,220) (1,717) Movement in short term borrowings 16 3 Net cash outflow from financing activities (5,366) (4,572) Net increase in cash and cash equivalents in the period 2,055 989 Cash and cash equivalents at the beginning of the period 4,895 3,927 Exchange rate effects 39 (21) Cash and cash equivalents at the end of the period 6,989 4,895 Cash and cash equivalents consists of: Cash and cash equivalents 7,103 4,979 Overdrafts (114) (84) 6,989 4,895 Note: Free Cash Flow (*) of $6,788 million (2005: $6,052 million) is calculated as; net cash inflow before financing activities, adjusted for: acquisition of businesses, movements in short term investments and fixed deposits, and disposal of intangible assets. Consolidated Statement of Recognised Income and Expense For the year ended 31 December 2006 2005 $m $m Profit for the period 6,063 4,724 Foreign exchange and other adjustments on consolidation 922 (1,052) Available for sale losses taken to equity (20) (10) Actuarial loss for the period (108) (35) Tax on items taken directly to reserves 137 (25) 931 (1,122) Total recognised income and expense for the period 6,994 3,602 Attributable to: Equity holders of the Company 6,970 3,595 Minority interests 24 7 6,994 3,602 Notes to the Preliminary Announcement 1 BASIS OF PREPARATION AND ACCOUNTING POLICIES The preliminary announcement for the full year ended 31 December 2006 has been prepared in accordance with International Accounting Standards and International Financial Reporting Standards (collectively 'IFRS') as adopted by the European Union (EU) at 31 December 2006. Details of the accounting policies applied are those set out in AstraZeneca PLC's Annual Report and Form 20-F Information 2005. The annual financial information presented in this preliminary announcement for the year ended 31 December 2006 is based on, and is consistent with, that in the Group's audited financial statements for the year ended 31 December 2006, and those financial statements will be delivered to the Registrar of Companies following the Company's Annual General Meeting. The auditors' report on those financial statements is unqualified and does not contain any statement under Section 237 of the Companies Act 1985. 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 and the Third Quarter and Nine Months Results 2006. 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 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 31 December At 1 Jan Cash Non-cash Exchange 2006 2006 flow Acquisitions movements movements $m $m $m $m $m $m Loans due after 1 year (1,111) - - 24 - (1,087) Other investments - current 1,624 (1,120) 157 (15) 11 657 Cash and cash equivalents 4,979 2,084 - - 40 7,103 Overdrafts (84) (29) - - (1) (114) Short term borrowings (6) (16) - - - (22) 6,513 919 157 (15) 50 7,624 Net funds 5,402 919 157 9 50 6,537 Non-cash movements in the period consist of fair value adjustments under IAS 39. 3 LEGAL PROCEEDINGS and contingent liabilities 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 2005 and the Third Quarter and Nine Months Results 2006. Matters disclosed in respect of the fourth quarter of 2006 and January 2007. Legal proceedings DiprivanTM (propofol) As previously disclosed, in relation to a patent infringement action brought by AstraZeneca, the US District Court for the Southern District of New York issued an injunction against Mayne Pharma (USA) Inc. (the holder of the new Abbreviated New Drug Application) preventing the manufacture, use, sale and offering for sale in the US of Mayne's propofol product. Mayne filed an appeal against this and in November 2006 the US Court of Appeals for the Federal Circuit affirmed the decision of the District Court. In June 2006, the DiprivanTM NDA was sold to Abraxis BioScience Inc. as part of an Asset Purchase Agreement. LosecTM/PrilosecTM (omeprazole) AstraZeneca continues to be involved in numerous proceedings in Canada involving various generics and patents, including under the Patented Medicines (Notice of Compliance) Regulations, relating to omeprazole capsules or omeprazole magnesium tablets. As previously disclosed, Apotex Inc. launched a generic omeprazole capsule product in Canada in January 2004. Following this launch, AstraZeneca commenced judicial review proceedings seeking to quash Apotex's notice of compliance (marketing approval) and AstraZeneca sued Apotex in July 2004 alleging infringement of its formulation patents by Apotex's omeprazole capsules. In May 2005, the Canadian Federal Court of Appeal quashed Apotex's notice of compliance (marketing approval), overruling the first instance decision in September 2004, which went against AstraZeneca. In June 2005, the Canadian Federal Court of Appeal granted Apotex's motion for a stay of the Court's decision to quash the notice of compliance, pending an application by Apotex for leave to appeal to the Supreme Court of Canada. The Supreme Court of Canada granted Apotex leave to appeal and also continued the stay granted by the Federal Court of Appeal, thereby allowing Apotex to continue selling its omeprazole capsules pending a decision by the Supreme Court on Apotex's appeal. The appeal was heard in May 2006 and allowed in November 2006, with the result that Apotex can continue to sell omeprazole capsules pending the outcome of the patent infringement action. In January 2006, AstraZeneca Canada Inc. was served with a claim in the Federal Court of Canada for payment of an undetermined sum based on damages allegedly suffered by Apotex due to the delay from January 2002 to January 2004 in the issuance to Apotex of a notice of compliance (marketing approval) in Canada for its 20mg omeprazole capsule product. The claim was held in abeyance pending Apotex's appeal to the Supreme Court of Canada, and following the November 2006 allowance of that appeal, Apotex has indicated it will be advancing the damages claim. AstraZeneca believes the claim is without merit and intends to defend it and to pursue its already pending patent infringement actions against Apotex vigorously. Sandoz Canada Inc. served AstraZeneca Canada with a notice of allegation in connection with certain patents related to omeprazole capsules, on the basis that Sandoz was seeking a notice of compliance (marketing approval) in Canada based on a comparison with AstraZeneca's LosecTM capsules. In January 2007, AstraZeneca Canada Inc. discontinued long pending proceedings against Reddy-Cheminor Inc. in respect of patents relating to omeprazole capsules, following Reddy-Cheminor's withdrawal of its allegations. NexiumTM (esomeprazole magnesium) As disclosed in the Annual Report and 20-F Information 2005, AstraZeneca entities have been sued in various state and federal courts in the US in purported representative and class actions involving the marketing of NexiumTM (esomeprazole magnesium). 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 2006, the Circuit Court of the 11th Judicial Court in and for Miami-Dade County, Florida dismissed the plaintiff's complaint with prejudice and without leave to amend. The plaintiff has appealed the dismissal, and the opening appeal brief is due in February 2007. In December 2006 and January 2007, several lawsuits against AstraZeneca entities, including putative class actions, were filed in US District Court for the District of Columbia alleging claims of unlawful monopolisation relating to PrilosecTM and NexiumTM. Individual actions were filed on 7 December 2006 by Walgreen Co., Eckerd Corporation, Maxi Drug, Inc. d/b/a Brooks Pharmacy, The Kroger Co., New Albertson's Inc., Safeway, Inc., Hy-Vee, Inc., and American Sales Company, Inc. and on 8 December 2006 by Rite Aid Corporation, and Rite Aid Headquarters Corp. Putative class actions brought on behalf of direct purchasers were filed on 18 December 2006 by Meijer, Inc. and Meijer Distribution, Inc., on 19 December 2006 by Louisiana Wholesale Drug Co., Inc., and on 8 January 2007 by Burlington Drug Co., Inc., Dik Drug Co., Inc., and King Drug Co. of Florence, Inc. The plaintiffs seek treble damages, injunctive relief, and attorney fees. AstraZeneca denies the allegations and intends to defend each of the actions vigorously. In December 2006, the European Patent Office (EPO) ruled that one of the European substance patents for NexiumTM would be rejected, following an appeal from the German generic manufacturer ratiopharm. The original patent expiry for this patent was 2014. While disappointed with the EPO decision, AstraZeneca has confidence in the intellectual property portfolio protecting NexiumTM. This portfolio includes process, method of use and additional substance patents with expiration dates ranging from 2009 through to 2019. The process patent is under opposition with the EPO and an Opposition Division oral hearing is scheduled for October 2007 (postponed from the original hearing date in March 2007). In addition to these patents, NexiumTM has data exclusivity valid to 2010 in major European markets. The revocation of the AstraZeneca European substance patent relating to NexiumTM should not have any substantive impact on AstraZeneca's ability to uphold and enforce its NexiumTM patents in the United States. AstraZeneca has several US Patents covering NexiumTM, all of which can be differentiated from the European patent found to be invalid. SeroquelTM (quetiapine fumarate) In August 2003, Susan Zehel-Miller filed a putative class action against AstraZeneca PLC and AstraZeneca Pharmaceuticals LP on behalf of 'all persons in the US who purchased and/or used SeroquelTM'. Among other things, the class action alleged that AstraZeneca failed to provide adequate warnings in connection with an alleged association between SeroquelTM and the onset of diabetes. In 2004, the United States District Court for the Middle District of Florida denied class certification and the case was ultimately dismissed. Two additional putative class actions raising similar allegations have likewise been dismissed. There are no other US class actions relating to SeroquelTM; however, four putative class actions raising substantially similar allegations have been filed in Canada. Additionally, AstraZeneca Pharmaceuticals LP, either alone or in conjunction with one or more affiliates, has been sued in numerous individual personal injury actions involving SeroquelTM. In the overwhelming majority of these cases, the nature of the plaintiffs' alleged injuries is not clear. Although some plaintiffs contend that they developed diabetes or other related injuries as a result of taking SeroquelTM and/or other atypical antipsychotic medications, in most instances, little or no factual information regarding the alleged injury has been provided. As of 24 January 2007, AstraZeneca was defending 604 served or answered lawsuits involving approximately 7,450 plaintiff groups. These include a number of recently filed cases that include close to 1,000 plaintiff groups per case. The majority of the SeroquelTM cases are pending in federal court with clusters of state court activity in Delaware, New Jersey, New York and Missouri. AstraZeneca is also aware of over 600 additional cases that have been filed but not yet served and has not determined how many additional cases, if any, may have been filed. Some of the cases also include claims against other pharmaceutical manufacturers such as Eli Lilly, Janssen Pharmaceutica and/or Bristol-Myers Squibb. AstraZeneca intends to vigorously defend all of the SeroquelTM cases. As previously disclosed, in September 2005, AstraZeneca received a notice from Teva Pharmaceuticals USA that Teva had submitted an Abbreviated New Drug Application (ANDA) for quetiapine fumarate 25mg tablets containing a paragraph IV certification alleging invalidity, unenforceability, or non-infringement respecting AstraZeneca's US patent listed in the FDA's Orange Book with reference to SeroquelTM. In November 2005, AstraZeneca filed a lawsuit directed to Teva's 25mg ANDA tablets in the US District Court for the District of New Jersey for willful patent infringement. In February 2006, AstraZeneca received another notice from Teva Pharmaceuticals USA that Teva had amended its previously submitted ANDA for quetiapine fumarate 25mg tablets and added 100, 200 and 300mg tablets to its application to the US FDA. The amended ANDA submission contained a similar paragraph IV certification alleging invalidity, unenforceability, or non-infringement in respect of AstraZeneca's US patent listed in the FDA's Orange Book with reference to SeroquelTM. In March 2006, in response to Teva's amended ANDA and Teva's intent to market additional strengths of a generic version of SeroquelTM in the US prior to the expiration of AstraZeneca's patent, AstraZeneca filed an additional lawsuit against Teva in the US District Court for the District of New Jersey for patent infringement. The two lawsuits were consolidated in April 2006. However in March 2006, the US District Court had granted Teva's motion to strike AstraZeneca's added allegation of willfulness in its patent infringement claim in the first complaint directed to Teva's 25mg tablets. Therefore, in the consolidated action, in response to AstraZeneca's now-combined allegations of patent infringement directed to Teva's 25, 100, 200 and 300mg ANDA tablets, Teva alleges non-infringement and patent invalidity. On 16 January, 2007, Teva filed a motion seeking leave to amend its pleadings in the consolidated action to add allegations, defenses, and counter-claims directed to alleged inequitable conduct in the procurement of AstraZeneca's patent. Discovery in the consolidated case is proceeding. AstraZeneca continues to have full confidence in and will vigorously defend and enforce its intellectual property protecting SeroquelTM. Toprol-XLTM (metoprolol succinate extended release capsules) As previously disclosed, in the consolidated litigation brought against KV, Andrx and Eon, the AstraZeneca patents relating to Toprol-XLTM were found to be invalid and unenforceable by the US District Court for the Eastern District of Missouri in January 2006. AstraZeneca appealed the District Court decision to the US Court of Appeals for the Federal Circuit. The appeal was fully briefed in 2006 and was argued in December 2006. We await the decision of the Court of Appeals. In August 2006, Sandoz (formerly Eon) received final approval from the US Food and Drug Administration (FDA) on the 25 mg dose of metoprolol succinate and tentative approval on the 50, 100 and 200mg doses. In November 2006, Sandoz launched its 25mg metoprolol succinate product, which was followed by Par Pharmaceutical's launch of a 25mg generic metoprolol succinate under a distribution agreement by AstraZeneca. There is no longer a stay in effect on the approval of the ANDAs filed by KV and Andrx but neither has received FDA approval. ZestrilTM (lisinopril) In 1996, two of AstraZeneca's predecessor companies, Zeneca Limited and Zeneca Pharma Inc. (as licencees), Merck & Co., Inc. and Merck Frosst Canada Inc. commenced a patent infringement action in the Federal Court of Canada against Apotex Inc., alleging infringement of Merck's lisinopril patent. Apotex sold a generic version of AstraZeneca's ZestrilTM and Merck's PrinivilTM tablets. Apotex admitted infringement but has raised positive defences to infringement, including that it acquired certain quantities of lisinopril prior to issuance of the patent and that certain quantities were licensed under a compulsory licence. Apotex also alleged invalidity of the patent. Following a trial in early 2006, in April 2006 the Federal Court of Canada ruled in favour of AstraZeneca and Merck on the key issues and Apotex stopped selling lisinopril in May 2006. In October 2006, the Federal Court of Appeal in Canada upheld the lower court's decision and dismissed Apotex's appeal. In December 2006, Apotex sought leave to appeal to the Supreme Court of Canada and the application remains pending. Average wholesale price class action litigation In the Average Wholesale Price class action litigation pending in Boston, a trial against certain of the defendants, including AstraZeneca, began on 6 November 2006 and concluded on 26 January 2007. That trial involved two of the three classes of plaintiffs certified by the Court, consisting mainly of third-party insurers for certain self-administered drugs, including Zoladex (goserelin acetate implant). The Court has yet to render its decision. A separate jury trial, against AstraZeneca only, is scheduled for 30 April 2007, to resolve the claims of the remaining class of plaintiffs, the individual Medicare beneficiaries. The multiple Attorney General lawsuits filed in state courts are proceeding independently of the Boston proceeding. The first trials that potentially involve AstraZeneca are scheduled for November 2007 in the Alabama and Mississippi Attorney General cases. Anti-trust In July 2006, AstraZeneca Pharmaceuticals LP was named as a defendant, along with a number of other pharmaceutical manufacturers and wholesalers, in a complaint filed by RxUSA Wholesale, Inc. in the U.S. District Court for the Eastern District of New York. The complaint alleges that the defendants violated federal and state anti-trust laws by, among other things, allegedly refusing to deal with RxUSA and other 'secondary wholesalers' in the wholesale pharmaceutical industry. The plaintiff alleges a conspiracy among the manufacturers and seeks an injunction and treble damages. AstraZeneca vigorously denies the allegations and in November 2006 filed a motion to dismiss the complaint. Drug importation anti-trust litigation As previously disclosed, in May 2004, plaintiffs in a purported class action filed complaints in the US District Court for Minnesota and for New Jersey, alleging 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 New Jersey case was voluntarily dismissed in July 2004. In August 2005, the Minnesota District Court dismissed with prejudice the plaintiffs' federal anti-trust claims and declined to exercise supplemental jurisdiction in relation to the state statutory and common law claims, which claims were dismissed without prejudice. The plaintiffs appealed the District Court's decision to the United States Court of Appeals for the Eighth Circuit. In November 2006, the United States Court of Appeals for the Eighth Circuit affirmed the District Court's decision. As previously disclosed, in August 2004, Californian retail pharmacy plaintiffs filed an action in the Superior Court of California making similar allegations to the Minnesota action and also alleging a conspiracy by approximately fifteen pharmaceutical manufacturer defendants to set the price of drugs sold in California at or above the Canadian sales price for those same drugs. In July 2005, the court overruled in part and sustained in part, without leave to amend, the defendants' motion to dismiss the plaintiffs' third amended complaint in these proceedings. The Court overruled the defendants' motion in respect of conspiracy claims but sustained the motion in respect of the California Unfair Competition Law claims. In December 2006, the Court granted the defendants' motion for summary judgment and the case was subsequently dismissed. In January 2007, plaintiffs filed a Notice of Appeal with the Court of Appeal of the State of California. NolvadexTM (tamoxifen) As previously disclosed, AstraZeneca is a co-defendant with Barr Laboratories, Inc. in numerous purported class actions filed in federal and state courts throughout the US. All of the state court actions were removed to federal court and have been consolidated, along with all of the cases originally filed in the federal courts, in a federal multi-district litigation proceeding pending in the US District Court for the Eastern District of New York. Some of the cases were filed by plaintiffs representing a putative class of consumers who purchased tamoxifen. The other cases were filed on behalf of a putative class of 'third party payers' (including health maintenance organisations, insurers and other managed care providers and health plans) that have reimbursed or otherwise paid for prescriptions of tamoxifen. The plaintiffs allege that they paid ' supra-competitive and monopolistic prices' for tamoxifen as a result of the settlement of patent litigation between Zeneca and Barr in 1993. The plaintiffs seek injunctive relief, treble damages under the anti-trust laws, disgorgement and restitution. In April 2002, AstraZeneca filed a motion to dismiss the cases for failure to state a cause of action. In May 2003, the US District Court for the Eastern District of New York granted AstraZeneca's motion to dismiss. The plaintiffs appealed the decision. In November 2005, the US Court of Appeals for the Second Circuit affirmed the District Court's decision. The plaintiffs thereafter moved for re-hearing by the original panel of judges in the case and re-hearing by a panel of all of the judges on the US Court of Appeals for the Second Circuit. The plaintiffs' requests for re-hearing were denied in September 2006. In December 2006, plaintiffs filed a Petition for a writ of certiorari to the US Supreme Court seeking to have the Court hear an appeal of the Second Circuit's decision. 4 FULL YEAR TERRITORIAL SALES ANALYSIS % Growth Full Year Full Year 2006 2005 Constant $m $m Actual Currency US 12,449 10,771 16 16 Canada 1,031 976 6 (1) North America 13,480 11,747 15 14 France 1,642 1,654 (1) - UK 850 757 12 12 Germany 1,165 1,223 (5) (4) Italy 1,265 1,152 10 11 Sweden 308 295 4 5 Europe others 3,673 3,382 9 10 Total Europe 8,903 8,463 5 6 Japan 1,503 1,527 (2) 5 China 328 272 21 19 Rest of World 2,261 1,941 16 16 Total 26,475 23,950 11 11 5 FOURTH QUARTER TERRITORIAL SALES ANALYSIS % Growth 4th Quarter 4th Quarter 2006 2005 Constant $m $m Actual Currency US 3,390 2,907 17 17 Canada 263 257 2 (2) North America 3,653 3,164 15 15 France 423 389 9 2 UK 237 196 21 12 Germany 301 306 (2) (8) Italy 311 274 14 7 Sweden 80 63 27 16 Europe others 1,006 861 17 10 Total Europe 2,358 2,089 13 6 Japan 442 424 4 6 China 87 76 14 13 Rest of World 614 533 15 13 Total 7,154 6,286 14 11 6 FULL YEAR PRODUCT SALES ANALYSIS World US Full Year Full Year Actual Constant Full Actual 2006 2005 Growth Currency Year Growth Growth 2006 $m $m % % $m % Gastrointestinal: Nexium 5,182 4,633 12 12 3,527 13 Losec/Prilosec 1,371 1,652 (17) (16) 233 (12) Others 78 70 11 11 24 71 Total Gastrointestinal 6,631 6,355 4 4 3,784 11 Cardiovascular: Seloken/Toprol-XL 1,795 1,735 3 3 1,382 7 Crestor 2,028 1,268 60 59 1,148 57 Atacand 1,110 974 14 14 260 12 Tenormin 320 352 (9) (7) 24 (4) Zestril 307 332 (8) (7) 28 N/m Plendil 275 360 (24) (24) 24 (71) Others 283 311 (9) (9) 3 N/m Total Cardiovascular 6,118 5,332 15 15 2,869 21 Respiratory: Pulmicort 1,292 1,162 11 11 835 22 Symbicort 1,184 1,006 18 18 - - Rhinocort 360 387 (7) (7) 252 (9) Oxis 88 91 (3) (3) - - Accolate 81 72 13 13 59 28 Others 146 155 (6) (6) - - Total Respiratory 3,151 2,873 10 10 1,146 14 Oncology: Arimidex 1,508 1,181 28 29 614 29 Casodex 1,206 1,123 7 9 295 23 Zoladex 1,008 1,004 - 1 107 (9) Iressa 237 273 (13) (11) 16 (76) Others 303 264 15 16 121 27 Total Oncology 4,262 3,845 11 12 1,153 16 Neuroscience: Seroquel 3,416 2,761 24 24 2,486 24 Local anaesthetics 529 511 4 5 76 9 Zomig 398 352 13 13 168 39 Diprivan 304 369 (18) (17) 85 (42) Others 57 66 (14) (12) 15 (17) Total Neuroscience 4,704 4,059 16 16 2,830 20 Infection and Other: Merrem 604 505 20 19 113 33 Other Products 271 334 (19) (18) 139 (27) Total Infection and Other 875 839 4 4 252 (8) Aptium Oncology 374 335 12 12 374 12 Astra Tech 360 312 15 16 41 41 Total 26,475 23,950 11 11 12,449 16 7 FOURTH QUARTER PRODUCT SALES ANALYSIS World US 4th 4th Constant 4th Quarter Quarter Actual Currency Quarter Actual 2006 2005 Growth Growth 2006 Growth $m $m % % $m % Gastrointestinal: Nexium 1,430 1,247 15 13 992 17 Losec/Prilosec 347 411 (16) (18) 77 5 Others 24 19 26 21 10 67 Total Gastrointestinal 1,801 1,677 7 5 1,079 16 Cardiovascular: Seloken/Toprol-XL 387 455 (15) (16) 276 (20) Crestor 625 353 77 73 356 75 Atacand 301 247 22 17 68 28 Tenormin 82 90 (9) (10) 5 (38) Zestril 78 84 (7) (11) 7 (30) Plendil 65 73 (11) (15) 4 (33) Others 71 76 (7) (13) 2 N/m Total Cardiovascular 1,609 1,378 17 14 718 15 Respiratory: Pulmicort 400 338 18 16 271 28 Symbicort 323 264 22 15 - - Rhinocort 90 92 (2) (3) 63 - Oxis 23 22 5 - - - Accolate 22 17 29 29 17 55 Others 41 40 3 (5) - - Total Respiratory 899 773 16 12 351 23 Oncology: Arimidex 412 325 27 24 174 33 Casodex 327 283 16 13 82 37 Zoladex 272 252 8 5 27 17 Iressa 63 72 (13) (14) 4 (76) Others 83 69 20 16 36 44 Total Oncology 1,157 1,001 16 13 323 26 Neuroscience: Seroquel 912 755 21 19 663 20 Local anaesthetics 133 131 2 (1) 11 (50) Zomig 103 94 10 7 41 5 Diprivan 79 88 (10) (11) 22 (37) Others 13 16 (19) (19) 2 (60) Total Neuroscience 1,240 1,084 14 12 739 13 Infection and Other: Merrem 167 130 28 23 29 21 Other Products 81 72 13 12 42 17 Total Infection and Other 248 202 23 20 71 18 Aptium Oncology 98 88 11 11 98 11 Astra Tech 102 83 23 16 11 38 Total 7,154 6,286 14 11 3,390 17 Convenience Translation of Key Financial Information 2006 2005 2006 2005 2006 2005 For the quarter ended 31 December $m $m £m £m SEKm SEKm Total Sales 7,154 6,286 3,645 3,203 49,237 43,263 Operating profit 2,003 1,636 1,021 834 13,785 11,260 Profit before tax 2,103 1,689 1,072 861 14,474 11,624 Net profit for the period 1,445 1,227 736 625 9,945 8,445 Earnings per Ordinary Share $0.93 $0.77 £0.47 £0.39 SEK6.40 SEK5.30 2006 2005 2006 2005 2006 2005 For the year ended 31 December $m $m £m £m SEKm SEKm Total Sales 26,475 23,950 13,490 12,204 182,212 164,833 Operating profit 8,216 6,502 4,186 3,313 56,546 44,749 Profit before tax 8,543 6,667 4,353 3,397 58,796 45,885 Net profit for the year 6,063 4,724 3,089 2,407 41,728 32,512 Earnings per Ordinary Share $3.86 $2.91 £1.97 £1.48 SEK26.57 SEK20.03 Dividend per Ordinary Share $1.72 $1.30 £0.896 £0.737 SEK12.20 SEK10.01 Net cash inflow from operating 7,693 6,743 3,920 3,436 52,946 46,408 activities Increase in cash & cash 2,055 989 1,047 504 14,143 6,807 equivalents Capital and Reserves 15,304 13,597 7,798 6,928 105,328 93,580 Attributable to Equity Holders All Sterling (£) and Swedish krona (SEK) equivalents are shown for convenience and have been calculated using the current period end rates of $1= £ 0.509541 and $1= SEK 6.882400 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 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 except that, during the year, AstraZeneca adopted the provisions of SFAS No. 158 'Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans - an amendment of FASB Statements No. 87, 88, 106 and 132(R)'. The effect of adoption, which is prospective from 15 December 2006, is to recognise in full the actuarial gains and losses arising from post-retirement benefit plans. The effects on income and shareholders' equity of the GAAP differences are shown below. Full Year Full Year Income attributable to Shareholders 2006 2005 $m $m Net income for the period under IFRS 6,043 4,706 Adjustments to conform to US GAAP Purchase accounting adjustments: - amortisation and depreciation (1,017) (1,019) - in-process research and development (502) - Capitalisation less disposals and amortisation of interest (21) (13) Pension and other post-retirement benefits (128) (74) Financial instruments 7 (35) In-licensed development intangibles (193) (29) Deferred taxation 283 283 - on purchase accounting adjustments (101) 65 - others Other 21 - Net income in accordance with US GAAP 4,392 3,884 Net income per Ordinary Share in accordance with US GAAP - basic $2.81 $2.40 Net income per Ordinary Share in accordance with US GAAP - diluted $2.80 $2.40 RECONCILIATION TO UNITED STATES ACCOUNTING PRINCIPLES (CONTINUED) Shareholders' equity 31 December 31 December 2006 2005 $m $m Shareholders' equity under IFRS 15,304 13,597 Adjustments to conform to US GAAP Purchase accounting adjustments: - goodwill 14,712 13,562 - property, plant and equipment and intangible assets 4,655 5,229 - in-process research and development (605) - Capitalisation, less disposals and amortisation of interest 220 241 Pension and other post-retirement benefits (48) 1,483 Financial instruments - 18 In-licensed development intangibles (309) (112) Deferred taxation - on purchase accounting adjustments (1,322) (1,629) - others (153) (492) Other 13 (3) Shareholders' equity in accordance with US GAAP 32,467 31,894 Shareholder Information ANNOUNCEMENTS AND MEETINGS Announcement of first quarter 2007 results 26 April 2007 Annual General Meeting 26 April 2007 Announcement of second quarter and half year 2007 results 26 July 2007 Announcement of third quarter and nine months 2007 1 November 2007 results DIVIDENDS The record date for the first interim dividend paid on 18 September 2006 (in the UK, Sweden and the US) was 11 August 2006. Ordinary shares traded ex-dividend on the London and Stockholm Stock Exchanges from 9 August 2006. ADRs traded ex-dividend on the New York Stock Exchange from the same date. The record date for the second interim dividend for 2006 payable on 19 March 2007 (in the UK, Sweden and the US) will be 9 February 2007. Ordinary shares will trade ex-dividend on the London and Stockholm Stock Exchanges from 7 February 2007. 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 Losec MUPS Merrem Nexium Nolvadex Oxis Plendil Prilosec Pulmicort Pulmicort Respules Rhinocort Rhinocort Aqua Seloken Seroquel Seroquel SR Symbicort Symbicort SMART 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 JPMorgan 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: This preliminary announcement contains 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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