27th Jan 2005 11:00
AstraZeneca PLC27 January 2005 Consolidated Profit & Loss Account For Continuing Operations 2004 2003For the year ended 31 December $m $m Sales 21,426 18,849 Cost of sales (5,150) (4,469)Distribution costs (177) (162)Research and development (3,803) (3,451)Selling, general and administrative expenses (7,841) (6,856)Other operating income 315 200 Operating profit before exceptional items 4,770 4,111Exceptional items charged to operating profit - - Operating profit 4,770 4,111Profits on sale of interest in joint venture 219 -Net interest and dividend income 96 91Profit on ordinary activities before taxation 5,085 4,202 Profit on ordinary activities before taxation before exceptional 4,866 4,202itemsExceptional items 219 -Taxation (1,254) (1,143) Profit on ordinary activities after taxation 3,831 3,059Profit on ordinary activities after taxation before exceptional 3,545 3,059itemsExceptional items 286 -Attributable to minorities (18) (23)Net profit for the year 3,813 3,036 Dividends to shareholders (1,555) (1,350) Earnings per Ordinary Share before exceptional items $2.11 $1.78Earnings per Ordinary Share $2.28 $1.78Diluted earnings per Ordinary Share $2.28 $1.78Weighted average number of Ordinary Shares in issue (millions) 1,673 1,709Diluted average number of Ordinary Shares in issue (millions) 1,675 1,712 Consolidated Profit & Loss Account For Continuing Operations 2004 2003For the quarter ended 31 December $m $m Sales 5,799 4,875 Cost of sales (1,526) (1,057)Distribution costs (45) (46)Research and development (963) (1,042)Selling, general and administrative expenses (2,030) (1,949)Other operating income 84 68 Operating profit before exceptional items 1,319 849Exceptional items charged to operating profit - -Operating profit 1,319 849Profits on sale of interest in joint venture - -Net interest and dividend income 26 20Profit on ordinary activities before taxation 1,345 869 Profit on ordinary activities before taxation before exceptional 1,345 869itemsExceptional items - -Taxation (370) (226)Profit on ordinary activities after taxation 975 643 Profit on ordinary activities after taxation before exceptional 975 643itemsExceptional items - -Attributable to minorities (7) (8)Net profit for the period 968 635 Dividends to shareholders (1,061) (914) Earnings per Ordinary Share before exceptional items $0.59 $0.38Earnings per Ordinary Share $0.59 $0.38Diluted earnings per Ordinary Share $0.59 $0.38Weighted average number of Ordinary Shares in issue (millions) 1,654 1,699Diluted average number of Ordinary Shares in issue (millions) 1,656 1,701 Consolidated Balance Sheet 2004 2003At 31 December $m $m Fixed assetsTangible fixed assets 8,083 7,536Goodwill and intangible assets 2,826 2,884Fixed asset investments 267 220 11,176 10,640 Current assetsStocks 3,020 3,022Debtors 6,274 5,960Cash and short-term investments 5,146 3,951 14,440 12,933Total assets 25,616 23,573 Creditors due within one year Short-term borrowings and current instalments of loans (142) (152)Other creditors (7,640) (7,543) (7,782) (7,695)Net current assets 6,658 5,238Total assets less current liabilities 17,834 15,878Creditors due after more than one yearLoans (1,030) (303)Other creditors (78) (52)Provisions for liabilities and charges (2,207) (2,266) (3,315) (2,621)Net assets 14,519 13,257 Capital and reservesShareholders' funds - equity interests 14,418 13,178Minority equity interests 101 79Shareholders' funds and minority interests 14,519 13,257 Statement of Total Recognised Gains & Losses 2004 2003For the year ended 31 December $m $mNet profit for the financial year 3,813 3,036 Foreign exchange adjustments on consolidation, net of tax 1,092 1,427Translation differences on foreign currency borrowings - -Tax on translation differences on foreign currency borrowings - -Total recognised gains and losses for the financial year 4,905 4,463 Consolidated Cash Flow Statement 2004 2003For the year ended 31 December $m $mCash flow from operating activities Operating profit before exceptional items 4,770 4,111Depreciation, amortisation and impairment 1,268 1,290Increase in working capital (9) (1,101)Other non-cash movements 40 317Net cash inflow from operating activities before exceptionalitems 6,069 4,617 Outflow related to exceptional items (8) (391) Net cash inflow from operating activities 6,061 4,226 Returns on investments and servicing of finance 58 76Tax paid (1,246) (886)Capital expenditure and financial investment (1,296) (1,597)Acquisitions and disposals 355 80Equity dividends paid to Shareholders (1,378) (1,222)Net cash inflow before management of liquid resources andfinancing 2,554 677Management of liquid resourcesNet movement in short-term investments and fixed deposits (862) 771Financing (1,383) (1,452)Increase/(decrease) in cash in the year 309 (4) Reconciliation of Cash Flow to Net Cash Funds 2004 2003For the year ended 31 December $m $m Net funds at 1 January 3,496 3,844 Net cash inflows before management of liquid resources andfinancing and dividends 3,932 1,899Net cash outflows from share issues and repurchases and dividends (3,488) (2,329)Exchange 34 82 Net funds at 31 December 3,974 3,496 Notes to the Preliminary Announcement 1 BASIS OF PREPARATION AND ACCOUNTING POLICIES The results for the full year ended 31 December 2004 have been prepared inaccordance with UK generally accepted accounting principles (UK GAAP). Theaccounting policies applied are those set out in AstraZeneca PLC's Annual Reportand Form 20-F Information 2003, except that, during the period, the Companyadopted UITF No. 38 "Accounting for ESOP Trusts". This adoption had nosignificant effect on net profit or shareholders' funds. The informationcontained in Note 5 below updates the disclosures concerning legal proceedingsin the Company's Annual Report and Form 20-F Information 2003 and the ThirdQuarter and Nine Months Results 2004. The results for the year ended 31 December 2004 presented in this preliminaryannouncement are extracted from, and are consistent with, those in the Group'saudited financial statements for the year ended 31 December 2004, and thosefinancial statements will be delivered to the Registrar of Companies followingthe Company's Annual General Meeting. Information in this preliminary announcement does not constitute statutoryaccounts of the Group within the meaning of Section 240 of the Companies Act1985. Statutory accounts for the year ended 31 December 2003 have been filedwith the Registrar of Companies. The auditor's report on those accounts wasunqualified and did not contain any statement under Section 237 of the CompaniesAct 1985. 2 INTERNATIONAL ACCOUNTING AstraZeneca is required to adopt International Financial Reporting Standards(IFRS) and International Accounting Standards (IAS) for financial reporting from2005 onwards. The Group's first results reported under IFRS/IAS will be theinterim results for Q1 2005. A reconciliation of the impact on profit on ordinary activities after taxationand net assets is shown below. Reconciliation of profit Net Assets 2004 2003 2004 2003 $m $m $m $mUK GAAP 3,831 3,059 14,519 13,257 Share-based payments (167) (136) (1) 19Employee benefits - (15) (1,435) (1,242)Business combinations 49 59 106 57Financial instruments (128) (16) 28 134Income tax 66 82 128 (8)Dividends - - 1,061 914Other 19 3 112 78 IFRS/IAS 3,670 3,036 14,518 13,209 More details of the impact of IFRS/IAS on the Group's financial performance areavailable at www.astrazeneca.com. Details of the impact on financial resultsfor 2003 and the first six months of 2004 were made available in October 2004. 3 RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS 2004 2003For the year ended 31 December $m $m Shareholders' funds at beginning of year 13,178 11,172 Net profit for the year 3,813 3,036Dividends to Shareholders (1,555) (1,350) 2,258 1,686Issue of AstraZeneca PLC Ordinary Shares 102 47Repurchase of AstraZeneca PLC Ordinary Shares (2,212) (1,154)Foreign exchange adjustments on consolidation, net of tax 1,092 1,427Net addition to Shareholders' funds 1,240 2,006Shareholders' funds at end of year 14,418 13,178 4 NET CASH FUNDS The table below provides an analysis of net cash funds and a reconciliation ofnet cash flow to movement in net cash funds. At 1 Jan Cash Other Exchange At 31 Dec 2004 flow non-cash movements 2004 $m $m $m $m $mLoans due after one year (303) (725) - (2) (1,030) Current instalments of loans - - - - - Total loans (303) (725) - (2) (1,030)Short-term investments 3,218 862 - 11 4,091Cash 733 296 - 26 1,055Overdrafts (152) 13 - (1) (140)Short-term borrowings - (2) - - (2) 3,799 1,169 - 36 5,004Net cash funds 3,496 444 - 34 3,974 Issue of AstraZeneca PLC Ordinary Shares (102)Repurchase of AstraZeneca PLC OrdinaryShares 2,212Net cash inflow before management ofliquid resources and financing 2,554 5 LEGAL PROCEEDINGS AstraZeneca is involved in various legal proceedings considered typical to itsbusiness, including litigation relating to employment matters, productliability, commercial disputes, infringement of intellectual property rights andthe validity of certain patents. The matters discussed below constitute themore significant developments since publication of the disclosures concerninglegal proceedings in the Company's Annual Report and Form 20-F Information 2003and Third Quarter and Nine Months Results 2004. Matters previously disclosed in respect of the third quarter of 2004 LosecTM / PrilosecTM (omeprazole) As disclosed in the Company's Annual Report and Form 20-F Information 2003,AstraZeneca has been involved in proceedings in Canada involving Apotex whichrelate to omeprazole capsules or omeprazole magnesium tablets and involvevarious patents. Following the launch by Apotex of a generic omeprazole capsuleproduct in April 2004, AstraZeneca launched judicial review proceedings seekingto quash Apotex's Notice of Compliance (marketing approval). In September 2004,the case was decided against AstraZeneca. AstraZeneca has appealed thedecision. PlendilTM (felodipine) In September 2004, the US Court of Appeals for the Federal Circuit issued adecision in AstraZeneca's patent infringement action against MutualPharmaceutical Co., Inc. commenced in 2000. As disclosed in the Company'sAnnual Report and Form 20-F Information 2003, Mutual had appealed againstdecisions of the US District Court for the Eastern District of Pennsylvaniawhich granted summary judgement to AstraZeneca as to both AstraZeneca'sinfringement and validity claims in respect of its patent covering the extendedrelease formulation of PlendilTM (felodipine) tablets. In September 2004, theFederal Circuit Court reversed the ruling by the District Court as toinfringement and held that Mutual's extended release felodipine tablets as amatter of law do not infringe AstraZeneca's formulation patent. However, theFederal Circuit Court upheld the District Court's decision as to validity,ruling that AstraZeneca's formulation patent is valid as a matter of law. In August 2004, the US District Court for the District of New Jersey issued anorder dismissing the case in the patent infringement action brought byAstraZeneca Pharmaceuticals LP against Zenith Goldline Pharmaceuticals Inc. (nowknown as IVAX Pharmaceuticals, Inc.). The patent infringement action againstZenith/IVAX, which AstraZeneca filed in July 2001, resulted from a May 2001letter to AstraZeneca wherein Zenith/IVAX declared its intention to market ageneric version of AstraZeneca's PlendilTM extended release tablets (felodipine)prior to the expiration of AstraZeneca's patent covering the extended releaseformulation. Zenith/IVAX filed counterclaims in the litigation allegingnon-infringement. The District Court's August 2004 order dismissed the case,without prejudice, pending the consummation of a settlement of the matter andgranting the parties the right upon motion and good cause shown, to re-open thelegal action if the settlement is not consummated within 60 days of the date ofthe order. The parties are jointly proposing, to the District Court, that the60 day period be extended by 30 days. Toprol-XLTM (metoprolol succinate) In July 2004, AstraZeneca filed proceedings against Andrx Pharmaceuticals in theUS District Court for the District of Delaware following Andrx's notificationthat it had filed an abbreviated new drug application with the US Food and DrugAdministration seeking approval to market a generic form of Toprol-XLTM in the25mg dose. In August 2004, AstraZeneca filed proceedings against KVPharmaceutical Company in the US District Court for the Eastern District ofMissouri following KV's notification that it had filed an abbreviated new drugapplication with the US Food and Drug Administration seeking approval to marketa generic form of Toprol-XLTM in the 50mg dose. AstraZeneca maintains that itspatents are valid and infringed by these Andrx and KV products. All of thepatent litigation related to Toprol-XLTM against Andrx, KV and Eon LabsManufacturing Inc. (the Eon proceedings having been disclosed in the Company'sHalf Year Results 2004) has been consolidated for pre-trial discovery purposesand motion practice in the US District Court for the Eastern District ofMissouri. These aspects of the proceedings will continue in the first half of2005. No trial date has yet been scheduled in the consolidated proceedings. Drug Importation Anti-trust Litigation In the Company's Half Year Results 2004, AstraZeneca disclosed pending,purported class action proceedings in Minnesota in which the plaintiffs allegethat AstraZeneca Pharmaceuticals LP and eight other pharmaceutical manufacturerdefendants conspired to prevent American consumers from purchasing prescriptiondrugs from Canada, "depriving consumers of the ability to purchase" drugs atcompetitive prices. The plaintiffs seek injunctive relief, restitution andother remedies. In August 2004, Californian retail pharmacy plaintiffs filed anaction in the Superior Court of California making similar allegations. Government Investigations into Drug Marketing Practices In October 2004, AstraZeneca received an additional subpoena from the USAttorney's Office in Boston, Massachusetts seeking documents relating tointeractions with physicians at a large, regional clinic and affiliated entitiesin north eastern Massachusetts. On October 15, AstraZeneca was informed that itwas going to receive a subpoena from the US Attorney's Office for the EasternDistrict of Pennsylvania seeking documents relating to the formulary status ofPrilosecTM and NexiumTM at a regional Health Maintenance Organization (HMO) anda national Pharmacy Benefits Manager (PBM). AstraZeneca intends to co-operatefully with these document requests. Matters disclosed in respect of the fourth quarter of 2004 NexiumTM (esomeprazole) AstraZeneca entities have been sued in state courts in the US in purportedrepresentative and class actions involving the marketing of NexiumTM(esomeprazole). These actions generally allege that AstraZeneca's promotion andadvertising of NexiumTM to physicians and consumers is unfair, unlawful anddeceptive conduct, particularly as the promotion relates to comparisons ofNexiumTM with PrilosecTM. They also allege that AstraZeneca's conduct relatingto the pricing of NexiumTM was unfair, unlawful and deceptive. The plaintiffsallege claims under various state consumer protection, unfair practices andfalse advertising laws. The plaintiffs in these cases seek remedies thatinclude restitution, disgorgement of profits, damages, punitive damages,injunctive relief, attorneys' fees and costs of suit. In October 2004, the first action was brought in the Superior Court of the Stateof California for the County of Los Angeles by the AFL-CIO, two unincorporatedassociations and an individual on behalf of themselves, the general public and aclass of California consumers, third party payers, cash payers and those makingco-pay. A second action has been filed in the same court on behalf of a similarputative class of consumers. Actions making similar allegations were filed onbehalf of a putative class of consumers in the Circuit Court of Searcy County,Arkansas and on behalf of a putative class of third party payers in the SuperiorCourt of the State of Delaware in and for New Castle County. In addition, in December 2004, AstraZeneca received a pre-litigation demand fromclaimants in Massachusetts who allege similar claims under Massachusetts law onbehalf of themselves and a proposed class of NexiumTM purchasers inMassachusetts. AstraZeneca denies the allegations and is vigorously defending each of theseactions. In October 2004, AstraZeneca LP filed suit in the US District Court for theDistrict of Delaware seeking declaratory judgement that its 'Better is Better'campaign for NexiumTM (esomeprazole) is not false or misleading advertising inviolation of section 43(a) of the Lanham Act, a federal statute governing falseadvertising claims. The action was taken in response to a letter from TAPPharmaceuticals, Inc. demanding that AstraZeneca immediately withdraw thetelevision commercial and other components of the NexiumTM direct-to-consumeradvertising campaign on the basis that they allegedly constitute violations ofthe statute. In November 2004, TAP requested expedited consideration of thecase by filing a motion for a preliminary injunction. In December 2004, thecourt held a hearing on this motion and denied the request for a preliminaryinjunction. A trial date has been scheduled for April 2006. PlendilTM (felodipine) In November 2004, the District Court entered an order of dismissal in the patentinfringement proceedings with Zenith/IVAX described above, reflecting theparties' agreement that AstraZeneca dismiss its claim of infringement and Zenith/IVAX dismiss its counterclaim of invalidity. Toprol-XLTM (metoprolol succinate) In December 2004, AstraZeneca filed proceedings against Andrx Pharmaceuticals inthe US District Court for the District of Delaware following Andrx'snotification that it had filed an Abbreviated New Drug Application (ANDA) withthe FDA seeking approval to market a generic form of Toprol-XLTM in the 100mgand 200mg doses. As disclosed in the Company's Third Quarter and Nine Months Results 2004, all ofthe patent litigation relating to Toprol-XLTM against KV, Andrx and Eon has beenconsolidated for pre-trial discovery purposes and motion practice in the USDistrict Court for the Eastern District of Missouri. The defendants filed amotion for summary judgement in December 2004 alleging that the Toprol-XLTMpatents are invalid due to double patenting. Briefing is ongoing. AstraZenecahas decided to file a terminal disclaimer of the Toprol-XLTM patents-in-suitover one of the other patents raised by the defendants, which will result in arevision of the expiration date of the Toprol-XLTM patents-in-suit from March2008 to September 2007. In any event, discovery and motion practice areexpected to be active through at least the first half of 2005. No trial datehas been set in the consolidated proceedings. Under the ANDA statute, the FDAmay not approve KV's product before September 2005, Andrx's product before June2006 or Eon's product before August 2006, unless there is an earlier adversecourt decision. AstraZeneca maintains that its patents are valid, enforceable and infringed bythese KV, Andrx and Eon products. General With respect to each of the legal proceedings described above, we are unable tomake estimates of the loss or range of losses at this stage. We also do notbelieve that disclosure of the amount sought by plaintiffs, if that is known,would be meaningful with respect to those legal proceedings. 6 FULL YEAR TERRITORIAL SALES ANALYSIS % Growth Full Year Full Year 2004 2003 Constant $m $m Actual Currency US 9,631 8,747 10 10 Canada 876 712 23 14 North America 10,507 9,459 11 10 France 1,597 1,454 10 (2) UK 589 532 11 - Germany 994 877 13 2 Italy 1,082 925 17 5 Sweden 298 304 (2) (12) Europe others 3,089 2,617 18 8 Total Europe 7,649 6,709 14 3 Japan 1,430 1,189 20 11 Rest of World 1,840 1,492 23 17Total 21,426 18,849 14 9 7 FOURTH QUARTER TERRITORIAL SALES ANALYSIS % Growth 4th 4th Quarter Quarter 2004 2003 Constant $m $m Actual Currency US 2,657 2,044 30 30 Canada 225 193 17 11 North America 2,882 2,237 29 29 France 389 396 (2) (9) UK 157 138 14 5 Germany 277 254 9 2 Italy 273 245 11 4 Sweden 76 75 1 (4) Europe others 816 738 11 4 Total Europe 1,988 1,846 8 1 Japan 412 356 16 14 Rest of World 517 436 19 18Total 5,799 4,875 19 16 8 FULL YEAR PRODUCT SALES ANALYSIS World US Full Year Full Year Constant Full Year 2004 2003 Actual Currency 2004 Actual $m $m Growth Growth $m Growth % % %Gastrointestinal: Losec 1,947 2,565 (24) (30) 366 (58)Nexium 3,883 3,302 18 15 2,716 10Others 88 76 16 9 33 18Total Gastrointestinal 5,918 5,943 - (4) 3,115 (8)Cardiovascular: Seloken/Toprol-XL 1,387 1,280 8 6 977 7Zestril 440 478 (8) (15) 69 (29)Atacand 879 750 17 10 252 (4)Plendil 455 540 (16) (20) 166 (30)Tenormin 368 342 8 - 35 84Crestor 908 129 n/m n/m 543 n/mOthers 340 391 (13) (20) 14 (22)Total Cardiovascular 4,777 3,910 22 17 2,056 28Respiratory:Pulmicort 1,050 968 8 4 576 13Rhinocort 361 364 (1) (3) 260 (3)Symbicort 797 549 45 32 - -Accolate 116 107 8 6 84 18Oxis 101 120 (16) (24) - -Others 158 153 3 (5) - -Total Respiratory 2,583 2,261 14 8 920 8Oncology:Casodex 1,012 854 19 11 232 9Zoladex 917 869 6 (1) 152 (13)Arimidex 811 519 56 48 300 52Iressa 389 228 71 65 176 73Faslodex 99 77 29 28 81 8Nolvadex 134 178 (25) (31) 2 (95)Others 14 18 (22) (28) - -Total Oncology 3,376 2,743 23 16 943 18Neuroscience:Seroquel 2,027 1,487 36 33 1,504 33Zomig 356 349 2 (3) 147 (10)Diprivan 500 458 9 5 264 15Local anaesthetics 542 466 16 8 131 24Others 71 73 (3) (10) 20 11Total Neuroscience 3,496 2,833 23 19 2,066 25Infection and Other:Merrem 423 346 22 15 68 8Other Products 293 282 4 (3) 140 30Total Infection and Other 716 628 14 7 208 21Salick Health Care 304 281 8 8 304 8Astra Tech 256 201 27 16 19 27Marlow Foods - 49 - - - -Total 21,426 18,849 14 9 9,631 10 n/m not meaningful 9 FOURTH QUARTER PRODUCT SALES ANALYSIS World US 4th 4th Constant 4th Quarter Quarter Actual Currency Quarter Actual 2004 2003 Growth Growth 2004 Growth $m $m % % $m %Gastrointestinal: Losec 446 528 (16) (19) 79 (4)Nexium 1,106 836 32 30 785 34Others 24 23 4 - 11 10Total Gastrointestinal 1,576 1,387 14 11 875 29Cardiovascular: Seloken/Toprol-XL 381 246 55 53 269 87Zestril 113 136 (17) (20) 21 (34)Atacand 240 207 16 12 63 (5)Plendil 94 157 (40) (42) 26 (68)Tenormin 97 96 1 (2) 9 80Crestor 312 41 n/m n/m 196 n/mOthers 84 107 (21) (24) 2 (60)Total Cardiovascular 1,321 990 33 30 586 73Respiratory:Pulmicort 313 294 6 4 188 17Rhinocort 93 92 1 - 68 1Symbicort 219 172 27 20 - -Accolate 32 31 3 3 24 9Oxis 25 29 (14) (17) - -Others 40 43 (7) (14) - -Total Respiratory 722 661 9 6 280 12Oncology:Casodex 276 207 33 29 63 152Zoladex 242 239 1 (2) 34 (26)Arimidex 233 147 59 54 83 89Iressa 80 92 (13) (14) 17 (65)Faslodex 26 21 24 24 19 (5)Nolvadex 35 40 (13) (13) - (100)Others 3 4 (25) (25) - -Total Oncology 895 750 19 16 216 17Neuroscience:Seroquel 562 428 31 29 412 22Zomig 89 104 (14) (17) 35 (34)Diprivan 126 119 6 4 63 5Local anaesthetics 144 122 18 14 37 76Others 17 19 (11) (11) 5 -Total Neuroscience 938 792 18 16 552 16Infection and Other:Merrem 113 104 9 5 14 (39)Other Products 86 53 62 47 50 n/mTotal Infection and Other 199 157 27 19 64 100Salick Health Care 78 81 (4) (4) 78 (4)Astra Tech 70 57 23 16 6 50Marlow Foods - - - - - -Total 5,799 4,875 19 16 2,657 30 n/m not meaningful Convenience Translation of Key Financial Information 2004 2003 2004 2003 2004 2003 For the quarter ended 31 December $m $m £m £m SEKm SEKm Total Sales 5,799 4,875 3,010 2,737 38,357 35,067 Operating profit beforeexceptional items (EI) 1,319 849 685 477 8,724 6,107Profit before tax on continuingoperations before EI 1,345 869 698 488 8,896 6,251Net profit for the period 968 635 502 356 6,403 4,568Earnings per Ordinary Share pre EI $0.59 $0.38 £0.31 £0.21 SEK 3.90 SEK 2.73 2004 2003 2004 2003 2004 2003 For the year ended 31 December $m $m £m £m SEKm SEKm Total Sales 21,426 18,849 11,122 10,581 141,720 135,585 Operating profit beforeexceptional items (EI) 4,770 4,111 2,476 2,308 31,551 29,571Profit before tax on continuingoperations before EI 4,866 4,202 2,526 2,359 32,186 30,226Net profit for the year 3,813 3,036 1,979 1,704 25,221 21,839 Basic earnings per Ordinary Share $2.28 $1.78 £1.18 £1.00 SEK15.08 SEK12.80Earnings per Ordinary Share pre EI $2.11 $1.78 £1.10 £1.00 SEK13.96 SEK12.80 Dividend per Ordinary Share $0.94 $0.795 50.3p 45.3p SEK 6.697 SEK5.980Net cash inflow from operatingactivities 6,061 4,226 3,146 2,372 40,083 30,398Increase/(decrease) in cash 309 (4) 160 (2) 2,044 (29)Shareholders' funds - equityinterests 31 December 14,418 13,178 7,484 7,397 95,366 94,792 Sterling (£) and Swedish krona (SEK) equivalents are shown for convenience andhave been calculated using the current period end rates of $1= £0.519090 and $1=SEK 6.61440, respectively. Dividend per Ordinary Share is shown as the actualamount payable using the rates at the date of declaration of the dividend. Information for US Investors RECONCILIATION TO UNITED STATES ACCOUNTING PRINCIPLES The Group profit and loss account and Group balance sheet set out on pages 11,12 and 13 are prepared in accordance with generally accepted accountingprinciples in the United Kingdom (UK GAAP) which differ in certain materialrespects from those generally accepted in the United States (US GAAP). Thedifferences as they apply to AstraZeneca PLC are explained in the Group's 2003Annual Report and Form 20-F. 2004 2003 $m $mIncome attributable to Shareholders Net income for the year under UK GAAP 3,813 3,036 Adjustments to conform to US GAAPPurchase accounting adjustments (including goodwill and intangibles) - deemed acquisition of Astra - amortisation and other acquisition adjustments (1,014) (952) - others 49 59Capitalisation, less disposals and amortisation of interest (1) 17Deferred taxation - on fair value of Astra 283 266 - others 90 (91)Pension and other post-retirement benefits expense (52) (43)Software costs capitalised 6 (18)Share based compensation 11 (12)Fair value of financial instruments (94) 10Deferred income recognition - 14In-process research and development (31) -Unrealised losses on foreign exchange and others (9) (18)Net income in accordance with US GAAP 3,051 2,268Net income per Ordinary Share under US GAAP (basic) $1.82 $1.33Net income per Ordinary Share under US GAAP (diluted) $1.82 $1.33 RECONCILIATION TO UNITED STATES ACCOUNTING PRINCIPLES 31 Dec 31 Dec 2004 2003Shareholders' equity $m $m Shareholders' equity under UK GAAP 14,418 13,178Adjustment to conform to US GAAPPurchase accounting adjustments (including goodwill and intangibles) - deemed acquisition of Astra - goodwill 15,099 14,311 - tangible and intangible fixed assets 6,988 7,661 - others 206 145Capitalisation, less disposals and amortisation of interest 254 255Deferred taxation- on fair value of Astra (2,134) (2,313)- others (92) (207)Dividend 1,061 914Pension and other post retirement benefits expense (573) (534)Software costs capitalised 52 46Fair value of financial instruments 2 109Deferred income recognition - -Others 33 89Shareholders' equity in accordance with US GAAP 35,314 33,654 Shareholder Information ANNOUNCEMENTS AND MEETINGS Announcement of first quarter 2005 results 28 April 2005 Annual General Meeting 2005 28 April 2005 Announcement of second quarter and half year 2005 results 28 July 2005 Announcement of third quarter 2005 results 27 October 2005 DIVIDENDS The record date for the first interim dividend paid on 20 September 2004 (in theUK, Sweden and the US) was 13 August 2004. Ordinary Shares traded ex-dividendon the London and Stockholm Stock Exchanges from 11 August 2004. ADRs tradedex-dividend on the New York Stock Exchange from the same date. The record date for the second interim dividend for 2004 payable on 21 March2005 (in the UK, Sweden and the US) will be 11 February 2005. Ordinary Shareswill trade ex-dividend on the London and Stockholm Stock Exchanges from 9February 2005. ADRs will trade ex-dividend on the New York Stock Exchange fromthe same date. The accelerated payment of the second interim dividend for 2004in March 2005 instead of April payment, as was previous practice, will result inthe Company making three dividend payments to shareholders in the UK 2004/2005tax year. Future dividends will normally be paid as follows: First interim Announced in July and paid in SeptemberSecond interim Announced in January and paid in March TRADEMARKS The following brand names used in this preliminary announcement are trademarksof the AstraZeneca group of companies: Accolate Arimidex Astra Tech Atacand Casodex Crestor Diprivan ExantaFaslodex Iressa Losec Merrem Nexium Nolvadex Oxis Plendil PrilosecPulmicort Pulmicort Respules Rhinocort Rhinocort Aqua Seloken SeroquelSingle Inhaler Therapy Symbicort Tenormin Toprol-XL Zestril Zoladex Zomig ADDRESSES FOR CORRESPONDENCE Registrar and Depositary Registered Office Swedish SecuritiesTransfer Office for ADRs Registration CentreThe AstraZeneca Registrar JPMorgan Chase Bank 15 Stanhope Gate VPC ABLloyds TSB Registrars PO Box 43013 London PO Box 7822The Causeway Providence W1K 1LN S-103 97 StockholmWorthing RI 02940-3013 UK SwedenWest Sussex USBN99 6DA Tel (in UK): 0870 600 3956 Tel (toll free in the US): Tel: +44 (0)20 7304 5000 Tel: +46 (0)8 402 9000Tel (outside UK): +44 (0)121 415 888 697 80187033 Tel: +1 (781) 575 4328 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS In order to utilise the 'Safe Harbor' provisions of the United States PrivateSecurities Litigation Reform Act of 1995, AstraZeneca is providing the followingcautionary statement. This Preliminary Announcement contains forward-lookingstatements with respect to the financial condition, results of operations andbusinesses of AstraZeneca. By their nature, forward-looking statements andforecasts involve risk and uncertainty because they relate to events and dependon circumstances that will occur in the future. There are a number of factorsthat could cause actual results and developments to differ materially from thoseexpressed or implied by these forward-looking statements. These factorsinclude, among other things, the loss or expiration of patents, marketingexclusivity or trade marks; exchange rate fluctuations; the risk that R&D willnot yield new products that achieve commercial success; the impact ofcompetition; price controls and price reductions; taxation risks; the risk ofsubstantial product liability claims; the impact of any failure by third partiesto supply materials or services; the risk of delay to new product launches; thedifficulties of obtaining and maintaining governmental approvals for products;and the risk of environmental liabilities. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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