Cautionary Statement Regarding

Forward Looking Statements

Forward-Looking

In order, among other things, to utilise the 'safe harbour' provisions of the US Private Securities Litigation Reform
Act 1995
1995, we e are pro
providing
iding the follo
following
ing ca
cautionary
tionar statement
statement: This presentation contains certain for
forward-looking
ard looking
statements with respect to the operations, performance and financial condition of the Group. Although we believe
our expectations are based on reasonable assumptions, any forward-looking statements, by their very nature,
involve risks and uncertainties and may be influenced by factors that could cause actual outcomes and results to
be materially different from those predicted.
predicted The forward-looking
forward looking statements reflect knowledge and information
available at the date of preparation of this presentation and AstraZeneca undertakes no obligation to update
these forward-looking statements. We identify the forward-looking statements by using the words 'anticipates',
'believes', 'expects', 'intends' and similar expressions in such statements. Important factors that could cause
actual results to differ materially from those contained in forward-looking statements, certain of which are beyond
our control, include, among other things: the loss or expiration of patents, marketing exclusivity or trade marks, or
the risk of failure to obtain patent protection; the risk of substantial adverse litigation/government investigation
claims and insufficient insurance coverage; exchange rate fluctuations; the risk that R&D will not yield new
products that achieve commercial success; the risk that strategic alliances or the integration of acquired
b i
businesses will
ill b
be unsuccessful;
f l th
the iimpactt off competition,
titi price
i controls
t l andd price
i reductions;
d ti ttaxation
ti risks;
i k th
the
risk of substantial product liability claims; the impact of any failure by third parties to supply materials or services;
the risk of failure to manage a crisis; the risk of delay to new product launches; the difficulties of obtaining and
maintaining regulatory approvals for products; the risk of failure to observe ongoing regulatory oversight; the risk
that new products do not perform as we expect; the risk of environmental or occupational health and safety
liabilities; the risks associated with conducting business in emerging markets or the failure to develop our
business in such markets; the risk of reputational damage; the risk of product counterfeiting; and the risk of failure
to successfully implement planned cost reduction measures through productivity initiatives and restructuring
programmes. Nothing in this presentation should be construed as a profit forecast.
AstraZeneca believes emerging
g g
markets are a sustainable
opportunity
Our goal is to continue double-digit growth, with
emerging markets becoming ~25% of AZ sales by 2014

AZ emerging
g g markets revenue g
goal

$12bn

$8bn

$4bn

$0bn
2009 2014
Our strategy in emerging markets has three elements

Emerging markets strategy

A B C
Continue to grow Extending our Broaden portfolio to
our presence in geographic foot- selectively include
the large BRIC-MT print by increasing branded generics
markets our involvement in
high-growth small
and mid-size
markets
Executing our strategy will create double-digit growth

C
B
A

2009 Growth in Growth in small Branded 2014

BRIC-MT and mid-sized generics
markets
We will grow our presence in the largest
emerging markets

A
G
Grow our strong
t portfolio
tf li off existing
i ti brands
b d
• Drive increased share
Continue to grow •E
Expandd our coverage
our presence in (geographic, customers & channels)
the large BRIC-MT
markets Launch AstraZeneca’s highly
g y relevant
pipeline products
Launch a highly selective portfolio of
b
branded
d d generics
i
Our highly relevant pipeline will be a large source of
growth in emerging markets

Examples
Lifecycle management on our core Crestor – JUPITER results
innovative brands Seroquel XR
Faslodex 500mg

Key AZ launches with emerging market relevance Brilinta / Brilique

Onglyza
Vimovo
Dapagliflozin

E
Emerging
i market
k t relevant
l t in-licensing
i li i Cubicin
C bi i
Ceftaroline
NXL104 combinations
Pi
Piperacillin
illi / tazobactam
t b t
Cimzia
NKTR-118
TC5214
Now let us consider two of our most important markets

Xudong Yin
Marketing Company President,
China
China

Rubens Pedrosa
Marketing Company President,
Brazil
Brazil
AstraZeneca believes emerging
g g
markets are a sustainable
opportunity
Emerging Markets
Investor Day
China
March 16, 2010
China is the single largest emerging market opportunity

China Rx market sales

Constant exchange rate ~$80bn

+20%
~$30bn

Sales rank among world ~$10bn

h
pharma markets
k t … 9th 5th 3d
3rd
2004 2009 2014

… and catching up to 8th 4th 2nd

Source: IMS Global Market Prognosis, June 2009

Reasons to believe in sustainable market growth

Economic g growth Growing

g health burden
and large increases
in middle class

Healthcare reform driving large Significant expansion

expansion of insurance coverage of medical infrastructure
AstraZeneca is the #2 pharma company in China

Rx market share,, 2009,, %

0 0.5 1.0 1.5 2.0 2.5

Pfizer/Wyeth
AstraZeneca hospital
demand sales in China
Bayer grew 31% from 2008
g
to 2009, outpacing
Sanofi-Aventis
market growth
Yangzijiang
Roche
Ke Lun
Shandong Qilu
Hengrui
Novartis
Source: IMS
AstraZeneca has seen consistent above-market
growth in China

AstraZeneca sales in China1

$811m

+32%
$437m

$203
$203m

2004 2007 2009

1 Actual exchange rates. Source: AZ internal data

AstraZeneca:
A strong culture of "In
In China,
China for China
China"

Yi X
Yin Xudong
d F d i k Ch
Fredrick Chu Sh h
Shuhwa Y
Yang
Marketing Company General Manager Finance, Commercial &
President Hong Kong Administration

Years with AZ: 7 Years with AZ: 3 Years with AZ: 5

Experience: Sales,
Sales Experience: Sales,
Sales Finance commercial
Finance,
Marketing, Strategy Marketing

Meade Zhang
Ingrid Zhang Human Resources
Sales & Marketing
Years with AZ: 2
Years with AZ: 6 Experience: HR
Experience: Sales,
Marketing, Strategy

Shan Guohong Allan Chan Wayne Shi

Primary Care Sales Commercial PC Marketing
Excellence Academy
Years with AZ: 7 Years with AZ: 8
Experience: Sales, Years with AZ: 20 Experience: Sales,
Marketing Experience: Sales,
Sales Marketing
Marketing, Strategy

Top commercial leaders are all Chinese and have been with AZ since 2004
I d
Industry l di staff
leading ff turnover rate ((a third
hi d llower than
h average))
We have a strong business presence across China

People Geographic coverage

• 2000+
000 sales
sa es reps
eps added • 5 Regions
eg o s
since 2003
• 22 Branches
• Rigorous semi-annual
• 45 Offices
talent review to
all 3,000+ employees • Covering 300 cities, with 200
being
g the focus
• Heavy investment in people
development including AZ Heilongjiang

Academy, EMBA/MBA, Inner Mongolia

Jilin

E t
Externall ttrainings,
i i Xinjiang
Beijing
Liaoning

International Assignments Hebei

Ningxia Shanxi
Qinghai Shandong
Gansu Jiangsu
Shaanxi Henan
Shanghai
Xizhang Hubei Anhui
Sichuan Chongqing
Zhejiang
Hunan Jiangxi
Fujian
Guizhou

Yunnan Guangdong
Guangxi

Hainan
We have supported this with investments in
manufacturing and R&D

Manufacturing • Additional $10 m invest-

ed to increase capacity
• New site opened • Further $35m • Plant approved for China • Further
in Wuxi following invested to meet and export to EU and $100m
investment of growing demand countries adopting EU expansion
$134m in China standards planned

2001 2006 2008 2010

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

2007

R&D • Innovation Centre • Focus is on benefit and

China (ICC) opened value of innovative
in Zhangjiang as part medicine for
of $100m R&D Chinese/Asian patients
investment in China • Initial work concentrates
on cancer in Chinese
patients, working with
l
local
l scientific
i tifi ttalent
l t
Our strategy going forward

Begin to establish leadership

Solidify leadership with new in “Broad Market”
Drive growth with current products • Capitalise on health
core brands • Additional sales force reforms with strategies to
• Increasing productivity capacity in top cities reach a greater share of the
• Improve coverage in • Leading marketing and Chinese patient population
100 additional cities
~100 sales capabilities
Key products entering
reimbursement list in 2009
1

New Products
Ceftaro- Dapag-
line liflozin

Vimovo

1 IV formulation 80
We have successfully boosted growth in the past
following NRDL listing

Sales

NRDL
listing

Ɩ Ɩ Ɩ Ɩ Ɩ Ɩ Ɩ

2003 04 05 06 07 08 2009

1 Oral formulation. Source: AZ

Our strategy going forward

Begin to establish leadership

Solidify leadership with new in “Broad Market”
Drive growth with current products • Capitalise on health
core brands • Additional sales force reforms with strategies to
• Increasing productivity capacity in top cities reach a greater share of the
• Improve coverage in • Leading marketing and Chinese patient population
100 additional cities
~100 sales capabilities
Key products entering
reimbursement list in 2009
1

New Products
Ceftaro- Dapag-
line liflozin

Vimovo

1 IV formulation 82
Our core portfolio has enjoyed high growth and still
has high growth potential driven by brand loyalty

AZ product growth Segment growth

Sales in China 2009* CAGR, 2004-09** CAGR, 2004-09**

$146m 19% 32%

$130m 22% 25%

$117m 24% 26%

$66m 73% 32%

$65m 34% 30%

$62m 55%1 36%

$56m 48% 40%

$24m 31% 28%

$22m 77%2 51%

$
$18m 54%
4% 3 %
37%
1 2005-09. 2 2006-09. Source: *AZ; **IMS 83
Industry leading customer segmentation and targeting
capability enables AZ to continue to increase productivity

Proprietary customer insights Industry leading productivity –

increasing at >10% a year

• We profiled 250,000 doctors out Sales rep productivity 1st half 2009
of 1.3m in China, building a Roche
valuable proprietary customer
Novo Nordisk
database
Bayer
• Using our database, we
rigorously segmented and
targeted the relevant physicians Pfizer
Novartis
• This has allowed us to continue
MSD
to boost the productivity of our
sales
l fforce Sanofi A entis
Sanofi-Aventis
GSK
Lilly
We are expanding our coverage into an additional
100 cities to extend the value of these core brands

Core coverage Increasing coverage

(~200 cities) (~100 cities)
• High frequency visits to doctors • Investing in sales force to increase
by sales reps coverage and sales rep frequency

Coupled with a holistic segmentation of physicians

and tailored promotional efforts
AZ China’s success will be enhanced by
newly reimbursed products

AZ has had success in getting Our products are in large markets

reimbursement for four key brands with high growth
• Update to National Reimbursement Total market 2009, $m
Drug List (NRDL) initiated in 2009
CAGR 04-09
by government
32% 30% 45% 25%
- Last update to NRDL in 2004
~$800m-
• Four AZ brands successfully 1,200m
added to NRDL
- Expected to get reimbursement
in provinces in 2010 ~$200m- ~$200m-
~$150m-
400m 400m
300m

PPIs Statins Asthma/ Beta-

COPD blockers

Source: IMS; AZ analysis

AZ has built capabilities to launch our new highly
relevant brands in China 1 1-2
2 years after major
established markets

Pipeline products Segment value1, Patient need

2009

$300 500
$300-500m >100m estimated to have heart disease in China

$300-500m 40m diabetics with further

20m pre-diabetic patients
Dapagliflozin

$350-700m ~5.2% of hospital patients in China have hospital-

acquired infections, with one of the highest rates
of antibiotic resistance
Ceftaroline

Vimovo $100-200m Surveys show 25-50% of adults over 50 in China

suffer from osteoarthritis

1Assumes the following IMS ATC classification: Brilinta (B1C), Onglyza (A10J, A10K, A10L, A10M, A10N), Cubicin (J1X), Ceftaroline (J1D, post-3rd generation
cephalosporins). Source: IMS, AZ analysis; China Daily; International Diabetes Foundation; National Nasocomial Infections Surveillance System; Journal of
Globalization and Health
Strong local customer insights allow us to launch new
products with maximum impact

AZ tailored its Symbicort strategy Symbicort share in China

based on China-specific insights Therapeutic segment sales, 2009
• Innovative and proprietary market
research approaches across
multiple cities and physician types: 16%
- Enabled a better physician and
patient segmentation and
identification of priority segments
- Supported differentiated 84%
messaging between
pulmonologists and paediatricians
((efficacy
y vs fast-control)) – a
Symbicort
S bi t held
h ld 16% share
h iin market,
k t
different distribution of messages
despite not having reimbursement –
vs. established markets
unlike key competitors
Healthcare reform is creating an opportunity in the
“Broad
Broad Market”
Market

The ggovernment is committed to investing

g$$125bn to support
pp healthcare
reform between 2009 and 2011, which includes
• $64bn to expand basic healthcare insurance
• $38bn to build and upgrade community / rural hospitals
These investments will help stimulate a new “broad market”

Source: MOH; China infobank; Literature research; AZ analysis 89

In part driven by government investment in insurance

Segment size
Annual funds collected for insurance
$154bn
+22%

$42bn
$21bn
UBMI (Urban employed)
Population covered 138m 200m 315m

+43%
$24bn
UCMS (Urban residents not $0bn $2bn
covered by UBMI)
Population covered 0m 117m 300m
Government
+45% funded
$40bn
$12bn
$1bn
RCMS (Rural residence)
Population covered 180m 815m 822m

2005 2008 2015

Source: MOH; China infobank; Literature research; AZ analysis 90

Our strategy in the “Broad Market” will enable us to
access more of the market

Core coverage Increasingg coverage

g Broad Market
(~200 cities) (~100 cities) (~360 cities)
• High frequency visits to • Investing in sales • AZ exploring best
doctors by sales reps force to increase operating model to
coverage and sales profitably participate
rep frequency
Our aspiration in China

• Drive g
growth with current core brands
• Solidify leadership position in China Rx with new products
• Establish profitable leadership position in the broad market
Emerging Markets
Investor Day
Brazil
March 16, 2010
Brazil is a high-growth market with strong fundamentals

Brazil market sales constant

~$25bn
$25b
exchange rate 8%+
Growth in the
~$17bn
$ prescription (ethical)
drug segment is
~$10bn expected to continue to
outpace
p overall market
growth through 2014
Sales rank among world
pharma markets … 11th 10th 9th
2004 2009 2014

… and catching up to
10th 9th 8th

Source: IMS Global Market Prognosis, June 2009

Reasons to believe in sustainable market growth

• GDP-growth
g boosting
g household incomes
and leading to middle class growth

• Primarily out
out-of-pocket
of pocket payment for medicines
with patients willing to pay for innovation,
quality, and services

• Targeted increases in government spend on

health care

• Ageing population is driving a disease profile

that favours chronic therapies and long
long-term
term
engagement with healthcare stakeholders
GDP growth fuelling expansion of the middle class

% of Households
30

15 to 20 million
new consumers
20
b
became middle
iddl
class during the
last decade
10
2010

2002
0
0 10 20 30 40 50 60 70
Household
ouse o d income
co e
$ '000
Source: Economist Intelligence Unit, 2010
AstraZeneca is the #7 multi-national pharmaceutical
company in Brazil but has significantly increased its rank
Rx market share, 2009, % Growth rate,
Local player
2004-09 %
2004-09,
0 1 2 3 4 5 6 7 8

Novartis 28%
EMS 38%
Sanofi-Aventis 19%
Roche 30%
Aché Labs 17%
Pfizer 14%
Medley 32%
Eurofarma 33%
Abbott 35%
Merck AstraZeneca has 10%
improved from #15 in 30%
Bayer Brazil in 2004 13%
GlaxoSmithKline 16%
Castro
Cas o Marques
a ques 28%
8%
Johnson & Johnson 18%
Source: IMS
AstraZeneca has seen consistent above-market
growth in Brazil

AstraZeneca sales in Brazil1

$457m
~30%
30% p.a.
$330m
We have grown
consistently at twice the
market, which averaged
10-12% growth per year
$134m
over the same period

2004 2007 2009

1 Actual exchange rate. Source: AZ internal

AstraZeneca Brazil has built a strong local organisation

Rubens Pedrosa Thomaz Bonatto Sergio Pompilio Jose E. Neves

Marketing Company President CFO Legal and Corporate Medical Director
Communications Director
Years with AZ: 3 Years with AZ: 13 Years with AZ: 12
Years with AZ: 2

Jerson Fibra Jeroen Christian Schneider Jorge Mazzei

Market Research, Training & Specialty Care BU Head Regulatory, Corporate Affairs
Business Support Director
Commissaris & Business Development
Primary Care BU Head
Years with AZ: 4 Director
Years with AZ: 10
Years with AZ: 6
Years with AZ: 4

Cecilia
Cec a Abe
be Miguel
gue Monzu
o u Daniela
a e a Cas
Castanho
a o
Compliance Officer Human Resources Director Operations Director

Years with AZ: 6 Years with AZ: 5 Years with AZ: 11

We have over 580 sales reps in
Brazil covering ~15 products
across ~10 therapeutic areas

AstraZeneca elected “Best

AstraZeneca recognized as one of
Pharmaceutical Company in
the “Great
Great Places to Work in Brazil”
Brazil
Brazil” due to distinguished
for 5 consecutive years (2005-09)
performance in 2008
Our strategy going forward

Launch selected
branded generics
Introduce AstraZeneca’s
and local in-licensed
new global launch
Grow our business in products
products
public reimbursement
Drive share and existing Branded
innovative brands Ceftaroline generics

Vimovo

Dapag-
liflozin
Our capabilities allow us to continue our momentum

We have improved our …to boost our sales of Crestor

segmentation and targeting…

Number of GPs Average details per Crestor sales

visited
i it d ffor C
Crestor
t visited
i it d GP per year

~9,000 +29% ~120 $67m

-25%
~90
90
~6,500
+208%
$22m
$

% of all Brazilian GPs visited,

visited 2009
16%
2006 2009

F th sales
Further l boost
b t possible
ibl lleveraging
i clinical
li i l ttrial
i l results
lt
Source: AstraZeneca
We have successfully entered the growing
public segment

The government is investing to cover …and AZ has already achieved success

a limited set of major diseases… positioning products for reimbursement
• Coverage for a targeted set of chronic • Positioned Seroquel for public
diseases including cancer and reimbursement in schizophrenia
schizophrenia
• Ongoing discussions for Crestor and
• 100% coverage of all health costs Brilinta
• G
Governmentt spendd projected
j t d to
t
increase further
Drug sales in public reimbursement Seroquel sales in public reimbursement
$45
$45m
$3.7bn

$2.2bn
$14m

2004 2009 2007 2009

Source: Ministry of Health, AstraZeneca

Our pipeline products are well-suited for patient
needs in Brazil

Pipeline products Segment value1, Patient need

2009

$150 200
$150-200m 32% of all deaths in Brazil attributable to
cardiovascular disease

$250-300m About 8 million people in Brazil have diabetes

diabetes.
An additional 1.5 million are pre-diabetic
Dapagliflozin

$200-250m Roughly 1.5 million hospital-associated infections

with several associated fatalities. Doctors are keen
for new therapeutic options with activity against
Ceftaroline MRSA and Gram
Gram-negative
negative pathogens

Vimovo $550m More than 5 million people affected by osteoarthritis

in Brazil with increasing role of NSAIDs that
present positive patient safety profiles

1Assumes the following IMS ATC classification: Brilinta (B1C), Onglyza/Dapagliflozin (A10J, A10K, A10L, A10M, A10N), Cubicin (J1X), Ceftaroline (J1D), Vimovo
(N2B). Source: IMS; British Journal of Medicine, International Diabetes Foundation, Globocan
AstraZeneca is also launching locally relevant in-
licenses and branded generics

Cimzia is an exciting local opportunity We are also launching a selective branded

in Brazil generics portfolio…
• AstraZeneca in-licensed Cimzia from UCB You will hear more detail on our branded
as a Brazil-specific opportunity generics strategy later in the presentation
• Cimzia will enter an ~$300m market for
rheumatoid arthritis and Crohn’s disease
• Ci
Cimzia
i h
has beneficial
b fi i l safety
f t and
d
simplicity of administration versus other
therapies available on the market
• AstraZeneca has a very strong record in
delivering technical content to medical
specialists that will be active in treatment
• AZ has capabilities to obtain public
reimbursement
Our aspiration in Brazil

• Enter the top 10 in the next 5 years

and continue to outgrow the market
• Drive increased share in our existing
brands
- Leverage our strong commercial
capabilities
- G
Grow our targeted
t t d access to
t public
bli
reimbursement
• Launch AZ’s new brands as well as
branded generics and local in-licenses
AstraZeneca believes emerging
g g
markets are a sustainable
opportunity
Our strategy in emerging markets has three elements

A B C
Continue to grow Extending our Broaden portfolio to
our presence in geographic foot- selectively include
the large BRIC-MT print by increasing branded generics
markets our involvement in
high-growth small
and mid-size
markets
Beyond BRIC-MT, AZ sees many important markets

2009 Rx market value

Market value CAGR 2004 09
2004-09
GDP per capita, 2009 (PPP)
Poland
$6.9bn Thailand
7.0% $3.0bn
$17,989 14.9%
$7,998
$ ,
Romania
$2.8bn Philippines
19.0% $2.3bn
$11,755 8.5%
Venezuela
V l $
$3,536
$4.8bn Algeria
24.2% $2.3bn Indonesia
$12,496 13.1% $2.5bn
$6 855
$6,855 9.5%
9 5%
Argentina
$4,149
$3.8bn
16.8% South Africa Saudi Arabia
$14,126 $2 0bn
$2.0bn $2 9bn
$2.9bn
9.4% 11.2%
$9,961 $23,388
Source: IMS; IMF World Economic Outlook
Small and mid-sized markets outside BRIC-MT are
material and could add $60bn in the 5 years

Emerging
g g markets incremental sales forecast 2009-14

+10-12% p.a. ~$150bn

~$90bn If growth continues at

historical rates (10-12%
(10 12% per
annum), small and mid-sized
markets will add $60bn in
Small and mid- sales byy 2014
sized markets
2009 2014

Source: IMS for 2009; AZ Projections for 2014 at historical growth

We believe we have significant upside potential in small
and mid-sized
mid sized markets

Middle East / North Africa

(MENA)
Maged Gobran
Area Vice President,
Middl E
Middle East/North
/N h AfAfrica
i
Emerging Markets
Investor Day
Middle East / North
Africa (MENA)
March 16, 2010
Middle East & North Africa (MENA)
– a collection of small and mid-sized
mid sized markets

Tunisia

Syria
Lebanon
Iraq
q
Morocco West Bank
Kuwait
Jordan Bahrain
Algeria Qatar
Libya
Egypt
gyp

UAE
Oman

Saudi Arabia

Yemen

17 markets, ~300 million population

Together small and mid-sized markets can contribute
significant growth

AstraZeneca sales in MENA1

$336m
• ~3 times market growth
+29% p.a.
• Fastest growing pharmaco
$210m i MENA
in
• ~$250m added 2004-09
$95
$95m

2004 2007 2009

1 Actual exchange rates. 17 markets as shown. Source: AZ internal data

Growth in small and mid-sized markets like MENA is
possible with empowered local leaders

Tarek Rabah Mohamed Makhlouf Mehdi Ferdjioui

j
President Gulf President Saudi Arabia Country Manager Algeria

Lebanese / Canadian Egyptian Algerian

Worked in Gulf and Brazil Worked in UAE, Egypt, Worked in Algeria
Saudi Arabia

Mehtap Arslan Issam Abu Ghaida Hicham Mirghani

HR Gulf Finance Middle East Marketing Maghreb

Turkish Palestinian / Austrian French / Sudanese

Worked in Turkey, UAE Worked in Austria, Worked in France,
Switzerland, Germany, Morocco
Saudi Arabia, Egypt

Rula Kassem Michel Bennaji Nibal Zarour

Marketing Company Legal Middle East Marketing Levant
President Levant
French / Tunisian Lebanese
Jordanian Worked in France, Worked in Lebanon
Worked in Jordan Belgium

Have added ~600

600 FTEs since 2004 (now at ~1
1,000)
000) while building quality
Our strategy going forward
Drive share in our currently
marketed pportfolio
Example – Saudi Arabia
Expand our market
coverage
Introduce AZ’s new
global launch products Example – Algeria
Example
p – Saudi Arabia
Saudi Arabia is an attractive market with high growth

Saudi Arabia

Saudi Arabia Rx market sales Key

y growth
g drivers
• Strong economic fundamentals
and natural resource wealth
$4.3-5.2bn
$4.3 5.2bn
• Increasing unmet medical need
– especially cardio-metabolic
$2.9bn • Growth in private insurance
coverage
$1 7bn
$1.7bn • IInvestments
t t to
t improve
i
healthcare quality and access
in public payers

2004 2009 2014E1

1 Projection based on sustained growth at 8-12% per annum. Source: IMS Global Market Prognosis, June 2009; AZ analysis
In Saudi Arabia, we have tailored our approach to the
three different segments of the market
Saudi Arabia

Traditional focus of
AZ Saudi Arabia Expanding our business in Saudi Arabia

Private physicians & clinics Institutions Ministry of Health

% of market value – 61% % of market value – 22% % of market value – 17%

We rapidly deployed resources and built capabilities to grow

across
ac oss a
all tthree
ee markets
a ets seg
segments
e ts
We have more than doubled our sales in Saudi Arabia

Saudi Arabia

AZ sales in Saudi Arabia

$97m
+20%

$39m

2004 2009

Source: AstraZeneca
Our major brands have significant momentum

Saudi Arabia

Sales in Saudi Arabia

of our top brands* AZ product growth Segment growth
2009 CAGR, 2004-09** CAGR, 2004-09**

$22
$22m 20% 15%

$22m 22% 20%

$10m 29% 14%

$9m 17% 16%

$8m 39%1 19%

1 2005-09 growth. Source: *AstraZeneca **IMS

Our pipeline products are well-suited to patient needs
across Saudi Arabia
Saudi Arabia

Pipeline Segment value1, Patient need

products 2009

$50 150
$50-150m 30% off d
deaths
th are related
l t d tto h
heartt
disease or atherosclerosis

$100-300m Out of the top 10 countries for diabetes

prevalence worldwide, six are in the
Dapagliflozin MENA region including Saudi Arabia

$100-200m ~4% of all Saudi Arabian hospital

patients are infected by MRSA
Ceftaroline

Vimovo $50-150m ~53% of men and ~61% of women in

Saudi Arabia suffer from Osteoarthritis

1 IMS ATC classification: Brilinta (B1C), Onglyza (A10J, A10K, A10L, A10M, A10N), Cubicin (J1X), Ceftaroline (J1D), Vimovo (N2B). Source: IMS
We have the infrastructure for growth

Field force targeting

g g Public p
payor
y teams
private market (MoH + Institutions)

Portfolio • Strong
g momentum in • Almost all p
products now
current portfolio on formulary
• Upcoming line extensions • New global product launches
• New global product launches

Coverage
g Increase in ppopulation
p covered Government improving
p g
by private insurers coverage through the Ministry
of Health for certain groups
(e.g. elderly and unemployed)

AstraZeneca has the infrastructure and capabilities

to capitalise on portfolio and coverage
Algeria is an attractive market with high growth

Algeria

Algerian
g Rx market sales Key
y growth
g drivers
• Large population (~35m) with
$3.3–4.0bn
$3.3 4.0bn
universal health care coverage
• Expected 4-5% GDP growth
supported by large oil and gas
reserves
$2.3bn
• However, clear government
policy
p y to reduce imports
p and
$1.2bn control health care spend

2004 2009 2014E1

1 Projection based on sustained growth at 8-12% p.a. Source: IMS Global Market Prognosis, June 2009
We are the #10 pharma company in Algeria despite
opening local organisation only 3 years ago

We have built a solid foundation in Algeria today with AZ sales in Algeria

a limited portfolio
• Established local office 2007
$34m
• Launched limited portfolio:
- Oncology products
- Atacand and Symbicort
- Select mature products
• Started building sales force
focusing on large cities
- 100 reps
- 10 FLSM
- 2 SLSM
• Grew to #10 pharma company with 30% YoY sales growth
2009

Source: AZ
In Algeria we continue to expand our local presence and
will be launching key products

AZ will now introduce 5-10 of Our products are in large markets

its large global brands in the with high growth
next 3 years
Total market 2009
Brands have seen very strong
performance in other markets CAGR 04-09

~$60m
$60m
E
Examples
l
~$45m
~$40m
~$30m

~$15m
24% 31% 14% 6% 25%

Anti- Statins Calcium- PPIs Hormone

psyschotics channel antagonists
blockers

Source: IMS
In Algeria we continue to expand our local presence and
organisation to support key product launches

Supported
pp with expanded
p Explore
p local manufacturing
g options
p
organisation
Expected benefits from local
Number of reps manufacturing presence
• Mitigate risk from import restrictions
+200 300+
• Simplify and accelerate registration
100+ procedure
• Reinforce negotiation position in pricing
2009 2014E and IP discussions

• Triple current sales force

• Develop local marketing and medical
teams (~15 people) to support
promotion activities

Source: AZ
MENA – an example of the potential of small and
medium sized markets
medium-sized

• Small and mid-size markets can

aggregate up to form a material business
• We have significant untapped potential
in some large markets
• We have a portfolio and pipeline that is
incredibly relevant to the MENA region
• A larger number of small markets
may reflect a higher level of complexity, but
can be managed effectively as a portfolio
AstraZeneca believes emerging
g g
markets are a sustainable
opportunity
Our strategy in emerging markets has three elements

A B C
Continue to grow Extending our Broaden portfolio to
our presence in geographic foot- selectively include
the large BRIC-MT print by increasing branded generics
markets our involvement in
high-growth small
and mid-size
markets
Brands dominate the market as brands are
the best proxy for quality

Emerging
g g market sales1, 2009,, Ex-manufacturer
~$30bn
(~17%) ~$180bn
~$50bn
(~28%)

~$90bn
( 50%)
(~50%)

~$10bn (~5%)

Commodity Branded Branded Patented

generics generics originals originals Total

1 Projected from 17 selected markets (China, Turkey, India, South Korea, Brazil, Mexico, Poland, Russia, Taiwan, Hungary, Romania, Egypt, Algeria, Saudi Arabia,

South Africa, Ukraine, UAE) to reflect total in emerging markets. Source: IMS; AZ analysis.
Why we believe we can succeed in branded generics

We are well p
positioned for success / profitability
p y
• We have the capabilities needed
- AstraZeneca is a world leader across emerging and established
markets at building brands
• We will follow a highly focused branded generics strategy
- Stringent criteria to select only markets and products where we
can achieve success
• Branded generics planned for:
~30 markets out of 100+ selected
~100 molecules out of 2,000+ originally profiled
Our strategy is focused on where we
can compete profitably

We focus on p
products where we can…
• Leverage AZ infrastructure, sales force, strength, and presence
• Focus on quality as a primary factor in customer product selection
• Differentiate our product through dosage, formulation, combinations,
etc…
• Create a ‘new’ market where products have demand but are not
promoted or are under promoted by the originator
• Strengthen AZ positioning across the portfolio in government tenders
without addition sales force resources
… and where we can obtain favourable pricing – e.g. similar to our
branded originals
We have chosen a highly selective initial portfolio of
~100 molecules

Molecules to be launched as branded g

generics,, number of
molecules by TA

~30-40

~20-30
~20-30
~15-25
15 25 ~10-20
~5-15

CNS CV1 Oncology GI Respiratory Other2

Aligned to areas of AstraZeneca expertise

1 Including Diabetes; 2 Most common drugs in this group are anticoagulants, painkillers and anti-infectives. Source: AZ Internal
We will expand our relationship with Torrent to support
the ramp-up
ramp up of our branded generics business

• Torrent has a p
proven ability
y to manufacture to AstraZeneca’s high
g
standards and a strong track record in a wide range of products
• We have a license and supply contract with Torrent for 18 products
in 9 markets
• AstraZeneca will expand the agreement to cover additional products and
markets to support the roll
roll-out
out of its branded generics business
• AstraZeneca and Torrent have agreed a “heads of terms” defining the
key
y pillars
p of a long-term
g strategic
g p partnering
g
Let us show you two examples
of our BGx country strategy

Jerzy Garlicki
Marketing Company President,
Poland
Poland

Ricardo Alvarez-Tostado
Marketing Company President,
Mexico
M i
Mexico
Emerging Markets
Investor Day
Branded Generics (BGx)
March 16, 2010
Poland is a growing market with the government serving
as the primary payer

Poland Rx market sales

Constant exchange rate ~$10bn
~10% p.a. • Government is the
primary
i payer
~$7bn • Patients make significant
co-pays
p y for drugs
g listed
~$5bn for reimbursement
• Physicians are largest
influencers in medicine /
Sales rank brand selection
among world 19th 18th 17th
pharma markets • Prescriptions written for
specific
f brands, with
limited switching
2004 2009 2014

Source: IMS Global Market Prognosis, June 2009

AstraZeneca has seen consistent above-market
growth in Poland

AstraZeneca sales in Poland1

$133m • AZ currently
tl ranked
k d
~14% p.a. as #9 MNC in Poland (2009),
up from #14 in 2004
• Largest products in Poland
$68m are Zoladex, Pulmicort,
Seloken and Symbicort
• Sales force of 300+
FTEs across ~10
therapeutic areas
2004 2009

1 Actual exchange rate. Source: AZ internal data

 Poland has a large BGx market estimated at ~$4.6bn

Total Rx sales1, 2009

Branded
generics

• ~75% of the market

37%
by value is branded
Commodity and d off-patent
ff t t
4% generics • Only 4% of the market
Patented 22%
% byy value is unbranded
originals

37%

Branded
originals

1 Categorisation based on Q1-Q2 2008 data; retail market only. Source: IMS, AZ analysis
Why AZ believes Poland provides a
sustainable BGx market

• Physicians
y strongly
gyp prefer branded p products;; p
preferences
unlikely to shift significantly in next 3-5 years

• Unprompted switching at pharmacies occurs rarely (<5%)

• BGx market expected to grow at 5-6% through 2015

• Branded generics are attractively priced, with discounts from

originator product prices typically limited to 5-30%

• Feasible for AZ to register branded BGx in ~18 months through

the EU Mutual Recognition Process
Our initial product portfolio of ~25 molecules over
2 years will represent a material uplift for AZ Poland
Number of
Therapy
py Area molecules Rationale

Anti-infectives
Support AZ’s Meronem positioning
for hospital tenders
AstraZeneca Poland 2014
revenues (%)
Cardiovascular
Build on AZ’s leadership in CV and
leverages CV salesforce
BGx

Leverages available capacity in 15-20%

Central nervous
CNS salesforce (Seroquel only
system
product)

Leverage AZ oncology reputation 80-85%

Oncology
and strengthens position in tenders
Core business

Respiratory Build on AZ’s leadership in

Respiratory with Symbicort

Source: AZ analysis
We have ‘proof of concept’ in Poland
Pliva had little success with a generic version
off T
Torasemide…
id
• Menarini first launched Trifas in 2000
in Poland
- Trifas is a branded version of torasemide,
a loop diuretic
• Pliva launched a commodity generic version
of torasemide in 2004
- Pliva supported the product with minimal
promotion or engagement with stakeholders
- Generic gained almost zero share
with Trifas maintaining almost constant share
…With success coming only after partnering with
AZ on a branded
b d d generic
i
• By 2006, market underdeveloped with Menarini
underpromoting Trifas
• AstraZeneca partnered with Pliva in
2006 to sell branded generic torasemide as
Diuver
- Product supported exclusively by AZ reps
• AstraZeneca successfully promoted the
product with no added infrastructure or
increase in sales force
- AZ leveraged existing coverage of target
customers (e.g. cardiologists) and strong
reputation in CV
Success of an AstraZeneca promoted branded
generic in Poland

Torasemide sales,, 2004-09,, $m

$

Diuver • Diuver is the leader in

Trifas Torasemide with 37%
sales share in therapeutic
AstraZeneca begins segment
exclusive promotion of
Diuver • Entire Torasemide market
has grown >5x since AZ
launch
• Have also launched
branded generics in
oncology (Pamisol –
pamidronic acid) and anti-
anti
Pliva launch generic infectives (Sumamed –
Torasemide
azithromycin IV)

Source: IMS
Emerging Markets
Investor Day
Branded Generics (BGx)
March 16, 2010
Mexico is a growing market with patients typically
self paying for medicines
self-paying

Mexico Rx market sales

Constant exchange rate
CAGR ~$13bn
~6% • Market primarily patient
out-of-pocket
t f k t paymentt
~10bn • Government spending on
health limited to p
poorest
~$7bn populations and social
security targeted to lower
income populations
Sales rank • Physicians largest influencers
among world 10th 13th 14th and prefer branded products
pharma markets
• Prescriptions rarely required
with patients preferring brands
2004 2009 2014

Source: IMS Global Market Prognosis, June 2009 144

AstraZeneca has been highly successful in Mexico

AstraZeneca sales in Mexico1 • AstraZeneca is the fastest growing

of the top 20 companies from 2001
to 2009 moving from rank #17 in
$334m 2001 to rank #8 in 2009
• AZ are leaders in key therapeutic
$261m segments including:
$206m − Losec and Nexium for PPIs
− Crestor in statins
− Tenormin and Seloken for
beta-blockers
− Pulmicort in inhaled
corticosteroids
2004 2007 2009
• Sales share of Seroquel XR in
Mexico is highest of any market
Dip in 2009 sales due to massive contraction in
worldwide
Mexico economy (-7% GDP growth, 2008-09) and
one-time
one time charge due to change in distribution model • Sales force total of ~600
600 FTEs
across ~15 therapeutic areas
1 Actual exchange rate. Source: AZ internal data 145
Mexico has the highest prices for branded generics
among large Emerging Markets

Retail p
price comparison
p across Emerging
g g Markets1, Index

Mexico

Russia

Brazil

Poland

Turkey

1 Sample size includes 19 large BGx products. Source: IMS; AZ analysis

Using the AZ criteria and approach, our initial BGx
portfolio will represent a material uplift for AZ Mexico

Number of
Th
Therapy A
Area molecules
l l R ti
Rationale
l

Cardiovascular Build on AZ’s leadership in CV

Leverage reputation and relationships
with GPs, Internal Medicine, and
Diabetes Endocrincologists to support market
development for Onglyza AstraZeneca Mexico 2014
revenues (%)
Build on AZ’s leadership
p in GI with
Gastro intestinal
Gastro-intestinal
Losec and Nexium
BGx
Build on AZ’s relationships with psychia-
Neurology trists and leverage additional CNS sales 10-20%
force capacity

Oncology Leverage AZ oncology reputation

Pain/ Support market development for 80-90%

inflammation Vimovo
Core business
Build on AZ’s leadership in Respiratory
Respiratory
with Symbicort

~30
Source: AZ
Example product
Diabetes fixed dose combination

Product overview Why AstraZeneca can win

• Diabetes product prescribed heavily • AstraZeneca has high recognition with
by GPs (~70% of all scripts) and GPs and internists due to strong
internists (~20%) primary care brands (e
(e.g.
g Nexium,
Nexium
Crestor, Seloken, Symbicort)
• Product has favourable clinical profile
and dosing versus key competitors, • Product can leverage existing sales
though captures low share due to lack force relationships and capacity to
of physician awareness of benefits ensure physicians are aware of
benefits vs competitors
• Physicians switching to fixed-dose
fixed dose
combinations due to improved • Will also help build AstraZeneca
patient compliance diabetes franchise
AstraZeneca
A t Z projects
j t that
th t it will
ill
capture 10-15% of this type of
combination by 2015

Source: Interviews; IMS; team analysis

Example product – We understand how to successfully
position branded generics
Mexico oral
anti-diabetics
Average unit
No. of price premium
Pricing Volume Value players in segment

High 8% 37% ~16

16 8-10x We can successfully y
and profitably position
Medium 13%
our branded generic
anti-diabetic in these
segments
22% ~16 3-5x

Low cost, highly

Low 79% 41% ~125 1x competitive
commoditised mass
market – (low priced
BGx, commodity Gx)

Source: IMS
Key takeaways on our branded generics plan

• We are taking
g a selective approach
pp in branded g
generics,, focused
on the markets and products where we can compete profitably

• Our plan will create a material business amounting to 10-15% of our

emerging markets business by 2014

• We have the capabilities required to successfully execute on our plans

• The business is ‘real’ – we are putting in place the partnerships to

source our initial 100 molecule portfolio
Our strategy in emerging markets has three elements

Emerging markets strategy

A B C
Continue to grow Extending our Broaden portfolio to
our presence in geographic foot- selectively include
the large BRIC-MT print by increasing branded generics
markets our involvement in
high-growth small
and mid-size
markets
Our goal is to continue double-digit growth, with
emerging markets becoming ~25% of AZ sales by 2014

AZ emerging
g g markets revenue g
goal

$12bn

$8bn

$4bn

$0bn
2009 2014
Emerging Markets
Investor Day
y

16 March 2010
Drivers of AstraZeneca success to date

We were 1st to invest in China,, the largest

g Emerging
g g Market opportunity
pp y

We have been successful at catching up quickly in other markets

We have built strong local organisations to successfully manage local

market dynamics

We support our local organisations with the best practice of our

global capabilities

We have a diverse portfolio of relevant products

Our strategy in emerging markets has three elements

Emerging markets strategy

A B C
Continue to grow Extending our Broaden portfolio to
our presence in geographic foot- selectively include
the large BRIC-MT print by increasing branded generics
markets our involvement in
high-growth small
and mid-size
markets
Emerging markets are forecast to contribute
~70% of pharma growth in the next 5 years

Worldwide pharmaceutical sales

$130bn $955bn
Emerging Markets 70%

$55bn
Established Markets 30%
$765bn

2009E 2014E
Emerging
g g markets projected
p j to grow
g at a 12% CAGR from 2009-2014

1 Emerging markets are all markets outside EU-15, Norway, Switzerland, Iceland; US, Canada, Japan, Australia, New Zealand. Source: IMS extrapolation.