What science can do

Annual Report and Form 20-F
Information 2018

01

Overview

This Annual Report quick-read provides top-level information on our business and the progress we have made in 2018 in pushing the boundaries of science to deliver life-changing medicines and demonstrating what science can do.



Science can


Science can


Science can


Science can


Science can


02

Chairman & CEO




03

Financial Highlights

2018 marked our return to Product Sales growth with strong performance from Growth Platforms and New Medicines more than offsetting the continued impact from patent expiries.


Revenue and Cash


Total Revenue*
Down 2% to $22,090 million at actual rate of exchange (down 2% at constant exchange rates – CER), comprising Product Sales of $21,049 million (up 4%; 4% at CER) and Externalisation Revenue of $1,041 million (down 55%; 55% at CER)

$22.1bn


Net cash flow from operating activities
Down 27% at actual rate of exchange to $2,618 million




 

$2.6bn

// Denotes a scale break. All bar chart scales start from zero. We use a scale break where charts of a different magnitude, but the same unit of measurement, are presented alongside each other.

*Total Revenue consists of Product Sales and Externalisation Revenue.

 

Operating profit


Reported operating profit
Down 8% at actual rate of exchange to $3,387 million (down 7% at CER)
 

$3.4bn


Core operating profit
Down 17% at actual rate of exchange to $5,672 million (down 17% at CER)
 

$5.7bn

EPS


Reported EPS
Down 28% at actual rate of exchange to $1.70 (down 29% at CER)
 

$1.70


Core EPS
Down 19% at actual rate of exchange to $3.46 (down 19% at CER)
 

$3.46



04

At a Glance

We are a global science-led business delivering medicines to patients through innovative science and excellence in development and commercialisation.


Product Sales


Total Product Sales

$21,049m

2017: $20,152m
2016: $21,319m


By therapeutic area



By geography




Employees


64,600

employees

44.6%

of our senior roles are filled by women

102

manuscripts published by our scientists in high-impact peer-reviewed journals


Sustainability



Priority 1

Broadening access to healthcare

 



Priority 2

Furthering ethics and transparency

 



Priority 3

Protecting the environment

 




Dividend per Ordinary Share 2018



1st Interim Dividend

$0.90

Pence: 68.4
SEK: 7.92
Payment date: 10 September 2018
 


2nd Interim Dividend

$1.90

Pence:146.8
SEK: 17.46
Payment date: 27 March 2019
 


Total

$2.80

Pence: 215.2
SEK: 25.38

 


05

Strategy

We announced our strategy for returning to growth in 2013. The first phase in our journey was focused on rebuilding our pipeline. The second stage was crucial as we drove our Growth Platforms forward, continued to launch new medicines and made them available to patients. We returned to Product Sales growth in 2018 and, as we look ahead to 2020 and beyond, continued investment in our product launches and pipeline will keep us on track to deliver sustainable growth in line with our targets.

We are a ‘pure-play’, global, science-led pharmaceutical company. We are focused on the discovery, development and commercialisation of prescription medicines, primarily for the treatment of unmet medical need in three main therapy areas: Oncology; Cardiovascular, Renal and Metabolism (CVRM); and Respiratory. In 2018, our strategic priorities were focused under the three pillars listed below.



2018 Highlights


2018 Highlights


2018 Highlights


Therapy Area Highlights