Core therapeutic areas Platforms for growth Luke Miels, Executive Vice President, Global Portfolio & Product Strategy and Corporate Affairs Current business is led by core therapeutic areas Sales 9M 2014 Infection, Neuroscience, Gastrointestinal 31% 12% Oncology 19% RIA 69% CVMD 38% Note: RIA: Respiratory, Inflammation & Autoimmunity CVMD: Cardiovascular & Metabolic Disease 2 – Core therapeutic areas Broad geographical presence; Emerging Markets strength US 39% of sales Europe 25% of sales Emerging Markets (ex-China) 13% of sales Note: Sales 9M 2014 3 – Core therapeutic areas China 9% of sales Japan 9% of sales ROW Established (ex-Japan) 5% of sales Respiratory, Inflammation & Autoimmunity (RIA) Cardiovascular & Metabolic Disease (CVMD) Oncology 4 – Core therapeutic areas Respiratory: Unique position in bringing leading medicines to patients Large & small molecules with compelling science Diversity in formulation to enable unique combinations Leading devices & choice for patients 5 – Core therapeutic areas Respiratory: Unmet need remains in asthma and COPD Asthma COPD Active patients, millions, 2014 GINA step 4-5 1-3 1.8m severe, inadequately controlled despite compliance 60 44 GOLD-defined patients, millions, 2014 GOLD stage 3-4 1.6m severe, inadequately controlled despite compliance 1-2 44 38 24 19 Note: G7 markets = US, France, Germany, Italy, Spain, UK, Japan Source: Decision Resources; Adelphi DSP 2012; other 6 – Core therapeutic areas Poor control Treated Diagnosed 9 COPD prevalence Poor control Treated Diagnosed Asthma prevalence 11 COPD: Affects ~300 million* people; highest prevalence in developing countries Male smoking prevalence trends by region (2011) Lifetime male smoking prevalence: 60% and above 50-59.9% 40-49.9% 30-39.9% 20-29.9% Below 20% No Data * Global estimate of diagnosed and undiagnosed patients Source: Decision Resources; Adelphi DSP 2012; AZ internal analysis of G8 and ROW uplift 7 – Core therapeutic areas Symbicort & Pulmicort: Growth by EM / Japan, new indications & new devices Emerging Markets / Japan New indications New devices Market growth driven by:  COPD label updates  Intelligent device EU  Improving diagnosis  COPD exacerbations US  Symbicort pMDI EU  Improving access to drug treatment  Environmental factors and smoking  Asthma SMART labelling  Mild asthma: Ex-US ‘as needed’  Symbicort / PT001 ‘open triple’ Source: UN Population Database, IMS Midas, other forecasts 8 – Core therapeutic areas  Symbicort BAI  Symbicort Pearl co-suspension  Pulmicort nebuliser expansion and Pearl co-formulation Symbicort: Resilience driven by devices Negative impact of switch is well documented* Successful treatment Change in SABA dose Partially successful treatment Unsuccessful treatment Proportion of patients (%) 0.40 19.7 34.3 80 60 0.20 29.6 27.8 40 20 0.20 0.10 0 50.7 37.9 -0.10 -0.20 Mean 95% CI change in SABA daily dose 100 Device has a very strong impact on prescription decision**,*** 57-69% of healthcare providers rate device as having very significant impact 32% 23% 13% 11% 6% 0% 0% 1 2 2% 4% 3 4 5 9% 6 7 8 9 0 Switch (n=824) Non-switch (n=824) Healthcare providers switch device typically in <10% of consultations • Thomas M, Price D, Chrystyn H, et al. Inhaled corticosteroids for asthma: Impact of practice level device switching on asthma control. BMC Pulm Med 2009; 9: 1. ** Qual MR ; 70 HCP and 149 Patient Depth Interviews; Chn, Jpn, Ge, Sp & USA; Q1 2014 Fast Forward Research *** Quant MR; 882 Physician On-line survey; Chn Jpn, Ge, Sp & USA; Q1 2014 IPSOS 9 – Core therapeutic areas 10 Inflammation & Autoimmunity: Strategy Progressing pipeline of first-in-class, best-in-class medicines Rheumatology • Gout Dermatology Gastrointestinal • Co-development with Amgen • Co-development with Amgen • Psoriasis and psoriatic arthritis • Crohn’s disease • Lupus • Rheumatoid arthritis 10 – Core therapeutic areas • Ulcerative colitis Inflammation & Autoimmunity: Significant growth potential Global markets for rheumatoid arthritis, psoriasis, psoriatic arthritis, lupus, ulcerative colitis, Crohn’s disease and gout $bn 60 $50bn 50 40 30 $30bn 20 10 0 Now RA PsO&PsA Source: IMS, biologic and novel oral brand sales by indication; Decision Resources 11 – Core therapeutic areas Future Lupus UC&CD Gout Respiratory, Inflammation & Autoimmunity (RIA) Cardiovascular & Metabolic Disease (CVMD) Oncology 12 – Core therapeutic areas Diabetes: Significant T2D disease burden exists globally 380 million people with diabetes worldwide Anticipated to grow to 590 million by 2035 • 55% increase in prevalence • Lower T2D mortality • Significant increase in Emerging Markets Source: International Diabetes Foundation Atlas 6 edition, International Diabetes federation 2013 13 – Core therapeutic areas Diabetes: Non-insulin diabetes market to continue endemic growth Expected revenues for insulin and other diabetes products $bn 47.3 5.5 6.4 8.8 27.8 4.2 3.2 9.8 8.5 16.7 11.8 2013 Other 2022 SGLT-2 Source: Decision Resources (2014), Type 2 Diabetes Therapy 14 – Core therapeutic areas GLP-1 DPP-4 Insulin Diabetes: Innovative portfolio spanning all non-insulin classes Orals DPP-4 SGLT-2 Injectables FDC SGLT-2 / DPP-4 15 – Core therapeutic areas GLP-1 Amylin analogue saxa-dapa Brilinta: Strengthening momentum Ticagrelor also increases adenosine, augments vasodilation, coronary flow, inhibition of platelet function, and dyspnoea ATLANTIC “Ambulance as effective as Cath-Lab” ESC, ATLANTIC & APOLLO Europe label change Q3 2014 DOJ closure APOLLO: “~1 in 5 patients will suffer an MI, stroke or CV death within the first year after an MI” 16 – Core therapeutic areas PEGASUS headline Q4 2014 New AHA guidelines AHA Ticagrelor >clopidogrel for ischaemic guided and early invasive NSTE-ACS patients Respiratory, Inflammation & Autoimmunity (RIA) Cardiovascular & Metabolic Disease (CVMD) Oncology 17 – Core therapeutic areas Oncology: Cancer incidence a global healthcare challenge Breast cancer treated patients • Over 8.2m adults die each year from cancer 800,000 600,000 400,000 • Over 13m people are predicted to die from cancer in 2030 200,000 0 2015 2025 US NSCLC 1L treated patients JP CN Ovarian cancer 1L treated patients 1,200,000 100,000 1,000,000 80,000 800,000 EU5 60,000 600,000 40,000 400,000 20,000 200,000 0 0 2015 US 2025 EU5 JP CN Source: NSCLC: Kantar Health Patient Metrics (US, UK, Spain, Italy), AZ internal sources (France, Germany, Japan and China) Breast: Kantar Health Patient Metrics (US, EU5, Japan), AZ internal sources (China) Ovarian: Kantar Health Patient Metrics (US, EU5, Japan); Decision Resources (China, Urban) Global Incidence and Mortality Numbers: Globocan 2012 (IARC) Projection. Population forecasts taken from UN, World Populations Prospects (2012 revision) Forecast market size Decision Resources Pharmaview 18 – Core therapeutic areas 2015 US 2025 EU5 JP CN Increasing importance of specialty care Primary care vs specialty care sales over time Future Now Primary Care 19 – Core therapeutic areas Specialty Care Confidence in strategy 20 – Core therapeutic areas • Core therapeutic areas platform for growth • Broad geographical presence with strong EMs • Aligned with pipeline • Pipeline driving a balance of primary and specialty care Core therapeutic areas Platforms for growth Luke Miels, Executive Vice President, Global Portfolio & Product Strategy and Corporate Affairs