CONTACT INFORMATION REGISTERED OFFICE AND SWEDISH CENTRAL SECURITIES DEPOSITORY CORPORATE HEADQUARTERS Euroclear Sweden AB AstraZeneca PLC PO Box 7822 15 Stanhope Gate SE-103 97 Stockholm London W1K 1LN Sweden UK Tel: +46 (0)8 402 9000 Tel: +44 (0)20 7304 5000 Fax: +44 (0)20 7304 5151 US DEPOSITARY JPMorgan Chase & Co INVESTOR RELATIONS PO Box 64504 E-mail: St Paul [email protected] MN 55164-0504 UK: as above US Sweden: Tel (toll free in the US): AstraZeneca AB 800 990 1135 SE-151 85 Södertälje Tel (outside the US): Sweden +1 (651) 453 2128 Tel: +46 (0)8 553 260 00 E-mail: [email protected] Fax: +46 (0)8 553 290 00 US: ASTRAZENECA.COM Investor Relations AstraZeneca Pharmaceuticals LP This Annual Report and Form 20-F Information 1800 Concord Pike is also available online at astrazeneca.com/ PO Box 15437 annualreport2008 Wilmington DE 19850-5437 US Tel: +1 (302) 886 3000 Fax: +1 (302) 886 2972 REGISTRAR AND TRANSFER OFFICE Equiniti Limited Aspect House Spencer Road Lancing West Sussex BN99 6DA UK Tel (freephone in the UK): 0800 389 1580 Tel (outside the UK): +44 (0)121 415 7033 ASTRAZENECA ANNUAL REPORT AND FORM 20-F I ANNUAL REPORT ASTRAZENECA nformation ASTRAZENECA ANNUAL REPORT 2008 AND FORM 20-F Information 2008 INTRODUCTION 2 AstraZeneca and our year in brief 2 Financial highlights 2 Chairman’s statement 4 Chief Executive Officer’s review 5 directors’ report 8 directors’ report 8 Introduction 8 Business environment 9 Strategy, goals and performance measurement 12 > Measuring our performance 14 > Reporting our performance – Financial and Non-financial 15 Resources, skills and capabilities 16 > Medicines 16 > Research and development 17 > Development pipeline at 29 January 2009 22 > Sales and marketing 25 FINANCIAL statements 98 > Intellectual property 26 TRADE MARKS > Supply and manufacturing 27 Trade marks of the AstraZeneca group of companies appear throughout this document in italics. AstraZeneca, > People 28 the AstraZeneca logotype and the AstraZeneca Financial review 31 symbol are all trade marks of the AstraZeneca group > Measuring performance 31 of companies. Trade marks of companies other than AstraZeneca appear with a ® or ™ sign and include: > Business background and Abraxane®, a registered trade mark of Abraxis major events affecting 2008 32 BioScience, LLC.; Advair Diskus™, a trade mark > Results of operations – of GlaxoSmithKline group of companies; Aspirin™, a trade mark of Bayer AG; Avastin™, a trade mark of summary analysis of year ™ to 31 December 2008 33 Genentech, Inc.; BiTE , a trade mark of Micromet AG; Cubicin™, a trade mark of Cubist Pharmaceuticals, Inc.; > Financial position, including Captisol™, a trade mark of CyDex Pharmaceuticals Inc.; cash flow and liquidity – 2008 34 CytoFab™, a trade mark of Protherics, Inc.; Enbrel™, remuneration report 174 > Restructuring and synergy costs 36 a trade mark of Amgen group of companies; EvaluatePharma®, a trade mark of Evaluate PLC; > Capitalisation and shareholder return 37 Herceptin™, a trade mark of Genentech, Inc.; Humira™, > Future prospects 37 a trade mark of Abbott Biotechnology Ltd; Lean Sigma™, a trade mark of Smallpiece Enterprises Limited; > Results of operations – ™ summary analysis of year to Lipitor , a trade mark of Pfizer Ireland Pharmaceuticals; Onglyza™, a trade mark of the Bristol-Myers Squibb 31 December 2007 38 Company; Prinivil™, a trade mark of Merck & Co., Inc.; > Financial position, including Remicade™, a trade mark of Centocor, Inc.; Seretide™, cash flow and liquidity – 2007 40 a trade mark of GlaxoSmithKline group of companies; ™ ™ > Financial risk management 41 Taxotere , a trade mark of Aventis Pharma SA; TriCor , a trade mark of Fournier Industrie et Santé; Trilipix™, > Critical accounting policies a trade mark of Abbott Laboratories; Zocor™, a trade and estimates 43 mark of Merck & Co., Inc.; and Zyprexa™, a trade mark > Other accounting information 47 of Eli Lilly and Company. ADDITIONAL information 190 USE OF TERMS In this Annual Report and Form 20-F Information, unless the context otherwise requires, ‘AstraZeneca’, ‘the Group’, ‘we’, ‘us’ and ‘our’ refer to AstraZeneca PLC and its consolidated entities. IMPORTANT INFORMATION be materially different from those predicted. The Inclusion of reported, constant exchange rate FOR READERS OF THIS REPORT forward-looking statements reflect knowledge and and core financial measures information available at the date of the preparation Throughout the Directors’ Report and in the Financial Statements OF dates of this Annual Report and Form 20-F Information Highlights section on page 2 and 3 the following Except as otherwise stated, references to days Cautionary statement regarding forward-looking and the Company undertakes no obligation to measures are referred to: and/or months in this Annual Report and Form 20-F statements update these forward-looking statements. We Information are references to days and/or months The purpose of this Annual Report and Form 20-F identify the forward-looking statements by using the > Reported performance. Reported performance in 2008. Information is to provide information to the members words ‘anticipates’, ‘believes’, ‘expects’, ‘intends’ takes into account all the factors (including those of the Company. In order, among other things, to and similar expressions in such statements. which we cannot influence, principally currency utilise the ‘safe harbour’ provisions of the US Private Important factors that could cause actual results to exchange rates) that have affected the results of our Securities Litigation Reform Act 1995 and the UK differ materially from those contained in forward- business as reflected in our Group Financial Companies Act 2006, we are providing the following looking statements, certain of which are beyond our Statements prepared in accordance with cautionary statement: This Annual Report and Form control, include, among other things, those factors International Financial Reporting Standards as 20-F Information contains certain forward-looking identified in the Principal Risks and Uncertainties adopted by the European Union and as issued by statements with respect to the operations, section on pages 74 to 82 of this document. the International Accounting Standards Board. performance and financial condition of the Group. Nothing in this Annual Report and Form 20-F Although we believe our expectations are based on Information should be construed as a profit > Core financial measures. This is a non-GAAP measure reasonable assumptions, any forward-looking forecast. because unlike reported performance it cannot be statements, by their nature, involve risks and derived directly from the information in the Group’s uncertainties and may be influenced by factors Financial Statements. This measure is adjusted to that could cause actual outcomes and results to exclude certain significant items, such as charges Designed by Addison Corporate Marketing Limited. INTRODUCTION DIRECTORs’ Report FINANCIAL STATEMENTS REMUNERATION REPort ADDITIONAL INFORMATION 1 Geographical review 48 Consolidated statement of Principal subsidiaries 164 > North America 48 recognised income and expense Independent auditor’s report to > Rest of World 50 for the year ended 31 December 100 the members of AstraZeneca PLC 165 Therapy area review 53 Consolidated balance sheet Company balance sheet 166 > Cardiovascular 54 at 31 December 101 Accounting policies (Company) 167 > Gastrointestinal 57 Consolidated cash flow statement Notes to the Financial Statements for the year ended 31 December 102 > Infection 59 (Company) 168 Accounting policies 103 > Neuroscience 61 1 Fixed asset investments 168 > Basis of accounting and preparation 2 Non-trade creditors 168 > Oncology 64 of financial information 103 > Respiratory and Inflammation 67 3 Loans 168 Notes to the Financial Statements 4 Reserves 169 Other businesses 70 (Group) 108 5 Reconciliation of movement Environmental sustainability 71 1 Operating profit 108 In the global community 72 in shareholders’ funds 169 2 Finance income and expense 108 6 Share capital 170 Risk 74 3 Taxation 109 > Managing risk, principal risks 7 Litigation and 4 Earnings per $0.25 environmental liabilities 170 and uncertainties 74 Ordinary Share 111 > Principal risks and uncertainties 76 8 Statutory and other information 171 5 Segment information 111 Group financial record 172 Business organisation and 6 Product revenue information 113 Corporate governance 83 7 Property, plant and equipment 114 DIRECTORS’ REMUneratiON REPOrt 174 > Business organisation 83 8 Goodwill 115 > Board of Directors at 9 Intangible assets 116 31 December 2008 84 ADDITIONAL INFORMatiON 190 10 Other investments 118 > Chief Executive Officer, delegation of authority 11 Inventories 118 Shareholder information 190 and Senior Executive Team 86 12 Trade and other receivables 119 Corporate information 197 13 Cash and cash equivalents 119 Cross‑reference to Form 20‑F 198 FINANCIAL stateMENTS 98 14 Interest bearing loans Glossary 199 and borrowings 119 Preparation of the 15 Financial risk management Financial Statements and objectives and policies 120 Directors’ responsibilities 98 16 Financial instruments 122 > Directors’ responsibility 17 Trade and other payables 127 statement pursuant to DTR 4 98 18 Provisions for liabilities Directors’ responsibilities for, and charges 127 and report on, internal control 19 Capital and reserves 128 over financial reporting 98 20 Share capital of parent company 129 Auditor’s reports on the 21 Dividends to shareholders 129 Financial Statements