pioneering science 
lifechanging medicines
astrazeneca annual report and form 20f information 2013 we are a global innovationdriven 
biopharmaceutical business  
we push the boundaries of 
science to deliver medicines that 
transform the lives of people 
around the world
pioneering science  
lifechanging medicines
this annual report is also available on our website  
wwwastrazenecacomannualreport2013
important information for readers 
of this annual report for further 
information in relation to the inclusion 
of reported performance core financial 
measures and constant exchange  
rate cer growth rates as used in  
this annual report please refer to  
the financial review on page 74 
throughout this annual report growth 
rates are expressed at cer unless 
otherwise stated
definitions the glossary and the 
market definitions table from page 232  
are intended to provide a useful guide  
to terms and astrazeneca’s definitions 
of markets as well as to acronyms  
and abbreviations used in this  
annual report
use of terms in this annual report 
unless the context otherwise requires 
‘astrazeneca’ ‘the group’ ‘we’ ‘us’  
and ‘our’ refer to astrazeneca plc  
and its consolidated entities
cautionary statement regarding 
forwardlooking statements  
a cautionary statement regarding 
forwardlooking statements and other 
essential information relating to this 
annual report can be found on the 
inside back cover
directors’ report the following 
sections make up the directors’ report 
which has been prepared in accordance 
with the requirements of the companies 
act 2006 
 corporate governance report
 audit committee report
 development pipeline
 responsible business
 shareholder information 
 corporate information
strategic report the following 
sections make up the strategic 
report which has been prepared  
in accordance with the requirements 
of the companies act 2006
 astrazeneca at a glance
 chairman’s statement
 chief executive officer’s review
 strategy
 business review
 therapy area review
 resources review
 financial review strategic report
2  astrazeneca at a glance
6  chairman’s statement
8  chief executive officer’s review
1 0  strat egy
34 business review
48 therapy area review
66 resources review
7 4  financial review
corporate 
governance
88  corporate governance report
98 audit committee report
102 directors’ remuneration report
financial 
statements
128 auditor’s reports
1 3 2  c ons oli d a t e d s t a t e m e n t s 
136 group accounting policies
141  notes to the group financial 
statements
additional 
information
194 development pipeline
198 patent expiries
199 risk
214 geographical review
220 responsible business
222 financials prior year
225 shareholder information
230 corporate information
231 trade marks
232 glossary
235 index
welcome to the astrazeneca annual report  
and form 20f information 2013
what is in our strategic report
dear shareholder
our strategic report is designed to help you assess how the directors performed in 2013 
in promoting the success of your company for our collective benefit
it begins with an overview of our performance in 2013 and personal statements from your 
chairman and chief executive officer we also describe our business model explaining 
how each element helps deliver our strategic priorities and adds value
strategy
our purpose and strategic priorities and how 
they are brought to life by the way we work 
how we measure our success and the risks 
we might face
business model  
pioneering science  
lifechanging medicines 
our marketplace 
our strategic priorities  
key performance indicators 
risk overview 
governance and   
remuneration
board of directors and   
senior executive team
page 10
page 12
page 13
page 16
page 20
page 24
page 26
page 28
business review
how our activities span the entire lifecycle  
of a medicine
lifecycle of a medicine  
research and development  
sales and marketing  
manufacturing and supply  
page 34
page 36
page 40
page 43
therapy area review
the progress we made in our chosen therapy 
areas in 2013
overview 
cardiovascular and   
metabolic disease 
oncology  
respiratory inflammation   
and autoimmunity 
infection neuroscience   
and gastrointestinal
page 48
page 52
page 56
page 58
page 61
resources review
the resources we use to achieve our strategy 
employees  
our relationships  
intellectual property  
our infrastructure  
page 66
page 70
page 72
page 73
financial review
a full financial review of 2013  page 74
strategic report
1 astrazeneca annual report and form 20f information 2013
additional information financial statements corporate governance astrazeneca at a glance
we are a global innovationdriven biopharmaceutical business
 who data
astrazeneca is one of only a handful of pureplay biopharmaceutical 
companies to span the entire value chain of a medicine from 
discovery early and latestage development to manufacturing  
and distribution and the global commercialisation of primary care 
specialty careled and specialty care medicines that transform lives
our primary focus is on three important areas of healthcare 
cardiovascular and metabolic disease cvmd oncology and 
respiratory inflammation and autoimmunity ria we are also active 
in the infection neuroscience and gastrointestinal ing disease areas
we operate in more than 100 countries and our innovative medicines 
are used by millions of patients worldwide 
we want to be valued as a source of great medicines and trusted  
as a company that delivers business success responsibly we are 
committed to operating with integrity and high ethical standards 
across all our activities we push the boundaries of science to deliver 
lifechanging medicines 
our proposition to investors
a focused 
onmarket 
portfolio in three 
core therapy 
areas and  
a strong 
commercial 
presence…
…combined 
with a distinctive 
rd platform 
and a growing 
latestage 
pipeline…
…with 
disciplined 
capital 
allocation and  
a commitment 
to a progressive 
dividend
pureplay innovation
our 10 leading medicines by sales value are
cardiovascular and metabolic disease oncology
more people die annually from cardiovascular diseases than from any 
other cause – an estimated 17 3 million people in 2008 – representing 
30 of all global deaths worldwide 347 million people have diabetes 
cvmd medicines represented 34 of our sales in 2013
cancer is a leading cause of death worldwide and accounted for 
82 million deaths in 2012 cancer medicines represented 12 of 
our sales in 2013
crestor
for managing  
cholesterol levels 
2011 6622m 
2012 6253m
selokentoprolxl
for hypertension heart 
failure and angina 
2011 986m  
2012 918m
iressa 
for lung cancer 
2011 554m  
2012 611m
faslodex
for breast cancer 
2011 546m  
2012 654m
zoladex
for prostate and  
breast cancer
2011 1179m  
2012 1093m
2013
5622m 
8
2013
750m 
18
2013
647m 
11 
2013
681m 
6
2013
996m 
0
257 billion
sales down 6 at cer to 25711 million 
27 973 million in 2012
30 billion
net cash shareholder distributions 
decreased by 49 to 2979 million partly 
as a result of the cessation of the share 
repurchase programme 5871 million net 
cash shareholder distributions including 
2206 million net share repurchases in 2012
84 billion
core operating profit down 23 at cer 
to 8390 million 11159 million in 2012
37 billion
reported operating profit down 51 at cer 
to 3712 million 8148 million in 2012
505
core eps for the full year decreased by 
23 at cer to 505 683

 in 2012
204
reported eps for the full year decreased  
by 55 at cer to 204 495
†
 in 2012 
financial summary
 restated for new core definition as detailed on page 224
  restated for new core definition and adoption of ias 19 2011 
as detailed on pages 136 and 224
†  restated on adoption of ias 19 2011 as detailed on  
page 136
 who data
2 astrazeneca annual report and form 20f information 2013
strategic report respiratory inflammation and autoimmunity other leading medicines
some 235 million people suffer from asthma and an estimated 64 million 
people had copd in 2004 ria medicines represented 18 of our sales 
in 2013
pulmicort
for asthma and copd 
2011 892m  
2012 866m
symbicort
for asthma and copd  
2011 3148m 
2012 3194m 
nexium
for acidreflux  
2011 4429m 
2012 3944m
seroquel xr
for schizophrenia bipolar 
disorder and major  
depressive disorder
2011 1490m  
2012 1509m 
synagis
for rsv a respiratory 
infection in infants 
2011 975m  
2012 1038m
2013
867m 
1
2013
3483m 
10
2013
3872 
0
2013
1337m 
12
2013
1060m 
2
9000
employees work in rd 
 all figures are approximate
29600
employees work in sales and marketing 
8700
employees work in supply and 
manufacturing 
a global scienceled company
51500
 
employees worldwide
17900

employees in europe 
excluding russia  
348
5100

employees in asia pacific  
excluding china japan and russia  
99
8000

employees in china  
155
1300

employees in russia  
25
2100

employees in  
middle east and africa 
41
3100

employees in central 
and south america 
60
2800

employees in japan 
55
11200

employees in  
north america  
217 
additional information financial statements corporate governance strategic report
3 astrazeneca annual report and form 20f information 2013 financial overview
our year in brief
sales 
m 6
core operating profit 
m 22
core earnings per 
ordinary share  23
net cash flow from 
operating activities m
reported operating profit 
m 51
reported earnings per 
ordinary share  55
13 25711
12 27973
11 33591
13 8390
12 11159
11 13932
13 505
12 683
11 768
13 7400
12 6948
11 7821
13 3712
12 8148
11 12795
13 204
12 495
11 729
2013
january
changes to the senior executive 
team announced
march
australia federal court  
holds crestor patents invalid  
us litigation over crestor  
patent settled
announce strategy to return  
to growth and achieve  
scientific leadership as well  
as restructuring and investment  
in strategic rd centres in the  
us the uk and sweden
astrazeneca and moderna 
therapeutics announce exclusive 
agreement to develop pioneering 
messenger rna therapeutics 
astrazeneca and karolinska 
institutet announce intention to 
create integrated translational 
research centre
june
announce decision not to 
proceed with regulatory filings for 
fostamatinib in rheumatoid arthritis 
following topline results from 
phase iii oskira trials 
cambridge biomedical campus 
in the uk selected as location  
of new global rd centre and 
corporate headquarters 
topline results for savortimi 53 
cardiovascular outcomes trial  
of onglyza
july
astrazeneca and fibrogen agree 
to collaborate to develop and 
commercialise roxadustat 
fg4592 for anaemia in chronic 
kidney disease and endstage 
renal disease
september
astrazeneca ranks in top 3  
in the sector in the dow jones 
sustainability and world indexes 
with a score of 85
initiation of phase iii clinical 
programme for olaparib
october
initiation of phase iii for 
selumetinib for advanced  
or metastatic nonsmall  
cell lung cancer
operational overview
achieve scientific 
leadership
99 pipeline projects
  including 85 in clinical development 
and 14 either approved launched 
or filed
11 nmes in phase iii of development 
or under regulatory review 
  almost double compared with 2012 
and achieving our 2016 target volume 
almost three years ahead of schedule
4 nme progressions to phase iii 
  benralizumab selumetinib olaparib 
and moxetumomab pasudotox
33 projects successfully progressed 
  to the next stage of development 
including 14 projects entering first 
human testing
15 projects withdrawn
be a great place  
to work
  to drive accountability and improve 
decision making we made our 
organisational structure flatter seventy 
percent of employees are now within 
six management steps of the ceo 
compared to 40 of employees within 
six steps in 2012
  a ‘pulse’ survey showed 84 
employee belief in our strategy in line 
with the pharmaceutical sector norm
  employees are now able to connect 
wirelessly across our sites further 
it changes are under way to improve 
performance and enhance the security 
and privacy of our information
return to growth 
6 reduction in revenue
  revenue fell by 9 in the us  
9 in europe and 10 in established 
row revenue rose by 8 in 
emerging markets
22bn loss of exclusivity reduction
  some 22 billion of revenue decline 
was related to loss of exclusivity on 
brands such as arimidex atacand 
crestor nexium and seroquel ir
12bn revenue growth in our five 
growth platforms 
  brilinta diabetes emerging markets 
respiratory and japan 
8 growth in emerging markets 
  including 19 growth in china
18bn noncash noncore pretax 
impairment charge  
  incurred as a result of bydureon sales 
below commercial expectations
4
strategic report  astrazeneca at a glance
astrazeneca annual report and form 20f information 2013 benralizumab advances to 
phase iii for severe asthma
marc dunoyer appointed cfo 
and executive director on 
simon lowth’s departure from 
astrazeneca
us court of appeals for the 
federal circuit reverses trial 
court decision that generic 
defendants do not infringe a 
patent protecting pulmicort 
respules in the us but affirms 
that another patent is invalid 
november
announce plans to invest 
190 million in a new facility to 
produce zoladex at our global 
manufacturing site in macclesfield 
in the uk 
december
fluenz tetra is granted marketing 
authorisation by the ec
fda advisory committee 
recommends metreleptin for the 
treatment of paediatric and adult 
patients with generalised 
lipodystrophy but does not 
recommend for the treatment  
of partial lipodystrophy for the 
proposed indication 
announce topline results from 
phase iii monotherapy study  
of lesinurad in gout patients
announce agreement to  
acquire bms’s 50 interest in 
astrazeneca’s and bms’s joint 
diabetes business 
following performance below 
commercial expectations in 
relation to bydureon incur a 
noncash noncore pretax 
impairment charge of 
approximately 18 billion
january 2014
fda approves farxiga in the us 
for adults with type 2 diabetes 
ec approves xigduo in the eu  
for adults with type 2 diabetes
2014
shareholder distributions
distributions to shareholders m 
2013 2012 2011
dividends 3461 3665 3764
share repurchases
1
– 2635
2
6015
3
total 3461 6300 9779
dividend per ordinary share  
2013 2012 2011
dividend per ordinary share 280 280 280
dividend for 2013
 pence sek payment date
first interim dividend 090 592 592 16 september 2013
second interim dividend 190 1168 1241 24 march 2014
total 280 1760 1833
1
  the share repurchase programme was suspended effective 1 october 2012
2
  share repurchases in 2012 net of proceeds from the issue of share capital equal  
to 429 million were 2206 million
3
  share repurchases in 2011 net of proceeds from the issue of share capital equal  
to 409 million were 5606 million 
strategic rd centres
in 2013 we announced our intention to increase our proximity to bioscience clusters and colocate around three strategic sites
gaithersburg us cambridge uk mölndal sweden
connections to national institutes of health 
and johns hopkins university
connections to the university of cambridge 
and its worldclass bioscience community
connections to karolinska institutet and 
medicon valley
acquisitions
over the past three years we have completed more than 150 major business development transactions in 2013 we announced the 
following acquisitions 
alphacore – a biotech company focused 
on a novel approach to cvmd
amplimmune – a biologics company 
developing novel therapeutics in cancer 
immunology
omthera – a specialty company working 
on new therapies for dyslipidaemia 
pearl therapeutics – a company focused 
on respiratory disease
spirogen – a biotech company focused 
on antibodydrug conjugate technology 
for use in oncology 
acquisition of global diabetes business 
– purchase of bms’s 50 interest in 
astrazeneca’s and bms’s joint diabetes 
business 
see the therapy area review from page 48 for more information
additional information financial statements corporate governance strategic report
5 astrazeneca annual report and form 20f information 2013 chairman’s  
statement
“ as expected our financial 
performance in 2013 reflected 
the ongoing impact of the loss 
of exclusivity for several key 
brands with revenue down  
6 to 2571 1 million”
dear shareholder
one of the key responsibilities 
of a board of directors is to set  
a company’s strategy as the 
ceo outlines in his review on 
the following pages and as we 
seek to demonstrate throughout 
this annual report your board 
has chosen a very clear strategic 
route to follow it is rooted in our 
heritage as a company focused 
on innovative science to deliver 
great medicines and sets out our 
ambition to lead in science and 
return to growth
good governance
as your directors review our strategy and 
carry out their other duties it is my role  
as chairman to lead the board effectively 
to my mind good governance is at the 
heart of that so that you can easily see 
how we are governed we have provided 
a corporate governance overview on page 
26 of this annual report we also briefly 
describe how our governance structure 
supports the delivery of our business 
strategy you can find more detail in my 
full corporate governance report from 
page 88 on page 24 we have also 
provided an overview of the risks that 
might prevent us from achieving the full 
potential of our strategy
transparent reporting
hand in hand with good governance goes 
transparent reporting and this year we have 
made a number of other changes in the 
annual report intended to promote this 
some have been caused by changes in uk 
reporting regulations others by changes to 
the corporate governance code and some 
by everevolving reporting best practice 
significant changes include the introduction 
of a strategic report which starts by 
explaining our business model and goes 
on to describe how each element helps 
deliver our strategic goals the strategic 
report is introduced in more detail  
on page 1
this year the annual report also includes 
a revised directors’ remuneration report 
from page 102 which is introduced by the 
chairman of the remuneration committee 
john varley a separate audit committee 
report is introduced by the chairman of 
the audit committee rudy markham
all the changes we have made are also 
intended to reflect our greater than ever 
efforts to make this annual report fair 
balanced and understandable
challenging environment
any balanced review of astrazeneca 
needs to reflect the environment in which 
we operate the challenging conditions 
which i touched on last year continue 
the world pharmaceutical market is still 
growing and underlying demographic 
trends remain favourable to longterm 
industry growth however many of the 
drivers of demand and supply in the 
industry are under pressure
6 astrazeneca annual report and form 20f information 2013
strategic report  outlook 
as we look to the future we expect a 
lowtomid single digit percentage decline 
in revenue at cer for 2014 in percentage 
terms core eps for 2014 is expected to 
decline in the teens at cer following the 
acquisition of bms’s 50 interest in our 
joint diabetes business and as the diabetes 
business’s pipeline of new products is 
progressively launched we expect 2017 
revenues will be broadly in line with 2013 
revenues this expectation involves a 
number of assumptions including among 
other things nexium us generic launch  
in may 2014
appreciation
before closing and on behalf of the  
board i want to thank the employees 
of astrazeneca whose efforts helped  
us achieve so much in 2013 as we lay  
the foundations for leading in science  
and returning to growth in particular  
i want to express my appreciation to  
pascal and all the members of the set  
for the leadership they have shown  
and the inspiration they have provided  
to the organisation
finally i would like to thank all my fellow 
directors for the contribution they have 
made to our discussions throughout a 
busy 2013 we look forward to welcoming 
as many of you as possible to our annual 
general meeting in april
leif johansson 
chairman
core eps for 2013 were 505 down  
23 on 2012 this decline was greater  
than the decline in revenue primarily  
due to our investment in our key growth 
platforms and strengthened pipeline 
reported eps for the year was down  
55 to 204 the impairment of bydureon 
in the fourth quarter reduced reported  
eps by 110 resulting in a reported loss 
per share for the quarter of 042
a responsible company
i firmly believe that our commitment to 
good financial performance needs to be 
matched by a continued focus on being 
a responsible company by working with 
integrity and delivering sustainable business 
development i therefore fully support the 
decision we have made to focus our 
responsible business activities on access 
to healthcare diversity and reducing our 
environmental impact it is where i believe 
we are able to implement standards that 
will accelerate our business strategy and 
deliver wider benefits to society
it is also gratifying to see our current efforts 
recognised by again being listed in the dow 
jones sustainability world index in 2013 
with a recordequalling score and retaining 
our listing on the european index for the 
sixth year running
return to shareholders 
consistent with our progressive dividend 
policy to maintain or grow the dividend 
each year the board has recommended  
a second interim dividend of 190 this 
brings the dividend for the full year to 
280 1760 pence sek 1833 
the board regularly reviews our distribution 
policy and overall financial strategy to 
continue to strike a balance between the 
interests of the business our financial 
creditors and our shareholders having 
regard for business investment funding the 
progressive dividend policy and meeting 
our debt service obligations we currently 
believe it is appropriate to continue the 
suspension of the share repurchase 
programme which was announced in 
october 2012 we continue to target a 
strong investment grade credit rating
on the demand side we face increased 
competition from generic drugs as some  
of the world’s most successful medicines 
come off patent in addition securing 
recognition through reimbursement 
approval and reward for innovation 
through favourable pricing and sales 
is becoming more difficult in the face of 
intense pricing pressures particularly 
in established markets facing rising 
healthcare costs on the supply side the 
industry faces an ongoing rd productivity 
challenge rd costs have risen significantly 
over the past decade while industrywide 
probability of success of new medicines 
though showing some recent signs of 
improvement has not kept pace
loss of exclusivity
loss of exclusivity has had and continues 
to have a significant impact on astrazeneca 
in 2013 loss of exclusivity on brands such 
as arimidex atacand crestor nexium 
and seroquel ir in a number of markets 
accounted for a revenue decline of some 
22 billion over the coming years this 
trend will continue as medicines such as 
crestor nexium and seroquel xr continue 
to lose exclusivity in markets such as the 
us and europe
of course loss of exclusivity is a normal 
part of an innovative medicine’s lifecycle 
it comes at the end of the period when a 
new medicine is safeguarded from being 
copied so that we can generate returns  
on the investment we have made both to 
reinvest in the business and provide an 
appropriate return to you our owners a 
wellfunctioning intellectual property system 
of this type which rewards innovation is 
the principal economic safeguard in our 
industry it underpins our business model 
which we explore in more detail in the 
business model section from page 10
our performance in 2013 
as expected our financial performance in 
2013 reflected the ongoing impact of the 
loss of exclusivity for several key brands 
with revenue down 6 to 25711 million 
2012 27 973 million core operating 
profit fell by 22 to 8390 million 2012 
11159 million the decline in revenue was 
in part offset by our key growth platforms 
brilinta our diabetes franchise respiratory 
emerging markets and japan which 
delivered an incremental 12 billion of 
revenue in 2013 
additional information financial statements corporate governance strategic report
7 astrazeneca annual report and form 20f information 2013 chief executive 
officer’s review
dear shareholder
at our investor day in march 
2013 we set out our strategy  
to achieve scientific leadership 
return to growth and ensure 
astrazeneca is a great place  
to work a year on we’ve built 
momentum behind our strategic 
priorities in particular our 
objective of achieving scientific 
leadership and started to deliver 
on some of the targets we have 
set ourselves you can find more 
detail about the progress being 
made throughout this annual 
report together with some  
case studies indicating how  
our pioneering science has  
the potential to transform lives
achieving scientific leadership
accelerating and replenishing our portfolio 
in our three core therapy areas is central to 
our mission and vital to our success i’m 
really pleased by the progress made during 
2013 at the end of the year we had 99 
projects in our pipeline of which 85 were  
in the clinical phase of development and 14 
were approved launched or filed that total 
included 11 new molecular entities or 
nmes in phase iii of development or  
under regulatory review almost double  
the number we had at the end of 2012 
four nmes that progressed to phase iii 
came from our existing pipeline olaparib 
selumetinib and moxetumomab pasudotox 
are potential cancer treatments while 
benralizumab is for severe asthma a 
further two nmes came from transactions 
we undertook during the year pt003 for 
the treatment of copd came to us from 
the acquisition of pearl therapeutics and 
epanova a novel treatment for dyslipidaemia 
came from the acquisition of omthera
alongside this we submitted regulatory 
filings for naloxegol for opioidinduced 
constipation in the eu and us and 
olaparib in the eu our diabetes treatment 
farxiga was approved in the us in january 
2014 having been approved in the eu in 
2012 under the name forxiga xigduo also 
for diabetes was approved in the eu in 
january 2014
i am particularly excited about the  
progress we made with our earlystage 
pipeline in 2013 including the multiple  
trials that are now under way in our cancer 
immunotherapy portfolio collaborations 
and acquisitions further strengthened the 
progress being made including alphacore 
in cardiovascular and metabolic disease  
as well as amplimmune and spirogen  
in oncology 
of course there is no innovation without risk 
and we discontinued 15 projects during the 
year this included fostamatinib where the 
results of clinical trials meant we decided 
not to proceed with regulatory filings
we continue to redeploy resources to 
convert our promising latestage pipeline 
into medicines that will transform patients’ 
lives and fund our growth platforms our 
productivity and efficiency programmes  
are providing some of the headroom to 
make those investments possible 
platforms for growth 
as the chairman noted our five growth 
platforms delivered an incremental  
12 billion of revenue in 2013 while  
our focus on these platforms is beginning  
to bear fruit we have more work to do if 
they are to deliver to their full potential
brilintabrilique is a key product for  
us and it continues to grow globally 
however despite encouraging progress  
in the us there are challenges that are  
still to be overcome
our longterm commitment to diabetes  
was reinforced with the acquisition of 
bms’s 50 interest in our joint diabetes 
business the acquisition which was 
completed in february 2014 included the 
rights for the development manufacture 
and commercialisation of the business’s 
global diabetes assets we believe that 
consolidating ownership of this portfolio  
will allow us to serve the needs of people 
with diabetes better as a result of  
sales below expectations we incurred  
an impairment charge for bydureon 
acquired as part of the bms acquisition  
of amylin nevertheless we continue  
to have confidence in the commercial  
future of the product 
overall diabetes revenues grew globally 
last year and we are stepping up our 
investment and improving execution of  
our plans to take full advantage of our 
unique portfolio
in our respiratory franchise symbicort 
drove growth with a strong performance 
in the us japan and emerging markets 
in japan our second largest market 
growth was also helped by the performance 
of nexium emerging markets revenue 
growth of 8 meant we met our target 
of high single digit growth at cer with 
growth in china of 19 over the year
while our revenue continues to be 
impacted by the loss of exclusivity for key 
brands reducing by 22 billion in 2013 
the progress being made provides us with 
the confidence that our 2017 revenues 
will be broadly in line with what we achieved 
in 2013
8 astrazeneca annual report and form 20f information 2013
strategic report in simon’s place i am pleased to be able 
to welcome marc dunoyer who joined us in 
june 2013 and took over as chief financial 
officer in november 2013 while we look 
for permanent successors i am grateful to 
ruud dobber who assumed the portfolio 
strategy role and caroline hempstead  
who took over lynn’s role they are part  
of a strong set team that continues to 
provide inspirational leadership as we focus 
the organisation on the continued delivery 
of our goals
looking ahead
as i commented at the start of my review 
i am pleased with the momentum we built 
in 2013 against our strategic priorities 
particularly our objective of achieving 
scientific leadership i look forward to 
reporting on how our journey progresses in 
2014 as we seek to build on our successes 
and realise our ambition for astrazeneca
pascal soriot 
chief executive officer
helping improve collaboration as well  
as reducing complexity and eradicating 
unnecessary cost 
overall progress is reflected in surveys that 
have shown an increasing employee belief 
in our strategic course this is heartening 
not least because implementation of our 
strategic priorities has created uncertainty 
for many for my part i will continue to 
work to ensure that we undertake the 
necessary changes with respect for the 
individuals concerned
a great place to work needs great  
leaders and we welcomed many talented 
individuals at all levels in 2013 the year 
also saw two of our set members leave 
simon lowth left us at the end of october 
after nearly six years at astrazeneca he 
made a significant and lasting contribution 
to the business i will miss him and would 
like to wish him well in the next chapter  
of his career also stepping down during 
the year was lynn tetrault who did so  
on health grounds i wish her a speedy 
recovery to full health lynn also made  
a significant contribution throughout her 
long career
great place to work
our achievements are of course down 
to the people who work at astrazeneca 
as well as our partners and collaborators 
however i firmly believe that these efforts 
are more productive when we all share  
a common purpose that is why i attach 
such great importance to the work we did 
during the year both to define our purpose 
as a group – who we are and the unique 
contribution we make – as well as to define 
the values that describe our fundamental 
beliefs and bring our purpose to life
over 30000 employees registered for our 
‘culture jam’ an online conversation about 
what it means to push the boundaries of 
science to deliver lifechanging medicines 
and about what our values mean in 
practice it was a defining moment for 
astrazeneca that demonstrated the 
passion our employees have for the work  
they do 
alongside this i am pleased with the 
progress made following our decision 
to invest in three strategic rd centres 
including the creation of a new ukbased 
centre in cambridge this will bring teams 
together and closer to scientific partners 
“ i am pleased with the momentum  
we built in 2013 against our strategic 
priorities particularly our objective of 
achieving scientific leadership”
additional information financial statements corporate governance strategic report
9 astrazeneca annual report and form 20f information 2013 how we add value
in this section we describe our business model and the purpose 
ambition and values that drive what we do and how we do it
we outline how we add value our strategic priorities how we measure our success and the risks we face we also describe  
how we are governed and paid and how this supports our strategy
our business model
cash flow revenue
re
investment
return to shareholders
therapy areas
resources
strategic 
priorities
customers
lifecycle of a medicine
promoting and rewarding innovation
research and development
creation and acquisition of 
intellectual property through 
innovative rd
application for patents to protect 
the intellectual property assets 
developed in a potential medicine
clinical development programmes 
to determine the safety and efficacy  
of the potential medicine and 
generate further intellectual 
property rights and data for 
regulatory submissions
unmet  
medical  
need
improved 
health
10 astrazeneca annual report and form 20f information 2013
strategic report  strategy  business model sales and marketing
period of intellectual property 
protection for an innovative 
medicine which allows a return  
to be made on the investment 
undertaken
expiry of intellectual property rights 
and commoditisation of knowledge 
which typically sees generic 
versions of a medicine entering 
a market
unmet medical need 
we are living in a time when underlying 
demographic trends are favourable to 
longterm pharmaceutical industry 
growth and innovative scientific research 
continues to deliver new ways of satisfying 
unmet medical need however as the 
our marketplace section from page 13 
demonstrates the economic social and 
political environment in which we operate 
presents major challenges as well as 
opportunities our strategic priorities 
section from page 16 defines our response 
to this environment
resources 
in everything we do we seek to optimise 
the value of all our resources these include 
both our employees and the relationships 
we have with our partners collaborators 
and suppliers our assets also include our 
intellectual property our infrastructure and 
other physical assets see the resources 
review from page 66 for more information
lifecycle of a 
medicine 
we are one of very few pureplay 
biopharmaceutical companies that is not 
involved in consumer or animal healthcare 
diagnostics or medical devices to span 
the entire value chain of a medicine from 
research early and latestage development 
to manufacturing and distribution and the 
global commercialisation of primary care 
specialty careled and specialty care 
medicines that transform lives our 
lifecycle management process including 
line extensions is designed to ensure  
a medicine’s continued safe use and  
to explore its potential for treating other 
diseases or for extending its use into 
additional patient groups see the business 
review from page 34 for more on our 
activities across a medicine’s lifecycle 
the therapy area review from page 48 
describes our activities across our chosen 
therapy areas
return to 
shareholders
the revenue we earn from the sale of our 
medicines generates the cash flow that 
helps us fund business investment our 
progressive dividend policy and meet our 
debt service obligations we aim to strike 
a balance between the interests of the 
business our financial creditors and our 
shareholders see the financial review 
from page 74 for more information
improved health
we believe that continuous innovation 
in medical progress is vital to achieving 
sustainable healthcare it adds value by
  leading to better health outcomes 
and transforming patients’ lives 
  enabling healthcare systems to save 
costs and be more efficient
  delivering value beyond the medicines 
themselves by for example improving 
access to healthcare and healthcare 
infrastructure
  contributing to the development of the 
communities in which we operate via 
local employment and partnering
promoting and 
rewarding innovation
the creation and protection of our 
underlying intellectual property assets 
as outlined below are essential elements  
of our business model developing  
a new medicine is risky costly and  
time consuming it requires significant 
investment over 10 or more years before 
product launch with no guarantee of 
success for this to be viable the new 
medicine must be safeguarded from 
being copied with a reasonable amount 
of certainty and for an acceptable period 
of time so we can generate the returns 
to reinvest in the business and provide 
an appropriate return to shareholders
the loss of key product patents has 
affected sales significantly in recent years 
and will continue to do so a key goal  
for our planning process is to ensure we 
sustain the cycle of successful innovation 
and so continue to refresh our portfolio 
of patented products that transform lives 
and generate shareholder value
additional information financial statements corporate governance strategic report
11 astrazeneca annual report and form 20f information 2013 pioneering science  
lifechanging medicines
a company’s purpose defines its unique contribution to the world
purpose
we push the boundaries of science to deliver  
lifechanging medicines 
values
  we follow the science
  science is at the heart of our business and is the basis for everything we do we make 
decisions based on strong scientific evidence encourage curiosity and always look to 
push the boundaries
 we put patients first
  patients are why we come to work every day we always seek to understand and reflect 
their needs we watch the wider healthcare environment and look to apply knowledge and 
experience from the external environment into our work 
 we play to win
  expectations are high we challenge each other make courageous choices and set high 
standards across the board we work together and use the strengths and diversity both 
within and beyond astrazeneca
 we do the right thing
  we always take personal accountability for our actions and challenge those that are not in 
line with our values we approach every interaction with candour honesty and integrity
 we are entrepreneurial
  excellence isn’t always achieved first time sometimes persistence is required we seize 
opportunities act with urgency and take smart risks whether we succeed or fail there 
is always a valuable lesson
at astrazeneca we want the way we work 
as embodied in our strategy and values  
to bring our purpose to life that is why  
in a year when we refreshed our strategic 
priorities we also reassessed our purpose 
and values this was to make sure that we 
express clearly our purpose and values 
and the behaviours necessary to realise 
our strategic ambitions to achieve scientific 
leadership return to growth and be a 
great place to work
to bring our purpose to life for employees 
we also took a fresh look at the values that 
define our beliefs as a company guide our 
decision making and underpin our drive for 
business success following a review of 
our culture and need to deliver a redefined 
strategy we identified five values intended 
to build on our strengths and highlight 
areas for transformation senior leaders 
and management teams from across the 
business contributed to the development 
of these values we also held an online 
culture jam event in november 2013 
to enable an organisationwide virtual 
dialogue to share ideas and create 
understanding of what our refreshed 
values mean
each value has a corresponding set 
of behaviours that describe what 
is required at the individual level to 
demonstrate them they apply to all 
employees and are complemented with 
manager accountabilities which define 
what we expect from our managers
12 astrazeneca annual report and form 20f information 2013
strategic report  strategy  our marketplace
the pharmaceutical industry has doubled in value since 2000
world 
bn 25
us
bn 04
europe
bn 11
established row
bn 13
emerging markets
bn 107
13 842
12 821
11 799
13 329
12 331
11 329
13 205
12 202
11 204
13 116
12 115
11 113
13 189
12 170
11 151
world pharmaceutical market sales
introduction
the pharmaceutical industry has doubled  
in value since 2000 this growth was 
powered by a large number of fda 
approvals in the second half of the 1990s 
and the increased use of medicines around 
the world driven by the global economic 
growth of the time now many demand 
drivers in the industry are under pressure 
nonetheless as the figure above shows 
the world pharmaceutical market still grew 
by 25 in 2013 while average revenue 
growth was only 036 in established 
markets emerging markets revenue was 
30 times higher at 107 the top five 
pharmaceutical markets in the world 
remained the us japan germany france 
and china with the us representing 391 
of global sales 2012 403 2011 411
competition
the industry remains highly competitive 
our competitors are other large research
based pharmaceutical companies that 
discover develop and sell innovative 
patentprotected prescription medicines 
and vaccines as well as smaller 
biotechnology and vaccine businesses 
and companies that produce generic 
medicines while many of our peers are 
confronting similar challenges these 
challenges are being met in different ways 
for example while some companies have 
pursued a focused strategy others have 
diversified by acquiring or building branded 
generics businesses or consumer 
portfolios arguing that this enables them 
to better meet changing customer needs 
and smooth shareholder risk
while most organisations continued to 
pursue their existing strategies in 2013 
there were exceptions with some 
companies moving away from diversification 
key industry trends included ongoing 
efforts to improve rd innovation and 
productivity expansion of geographic 
scope especially in emerging markets 
and japan and the pursuit of operational 
efficiency business development and 
partnering increased at all stages of 
product development
there continued to be a shift away from 
the development of new primary care 
medicines towards oncology other 
specialty care drugs and orphan diseases 
as an illustration in 2013 just 30 of the 
new nmes approved by the fda were 
for primary care medicines 
growth drivers
expanding patient populations 
the world population is expected to rise 
from its current level of some seven billion 
to reach nine billion by 2050 in addition 
the number of people who can access 
healthcare continues to increase 
particularly among the elderly globally 
it is estimated that between 2000 and 
2050 the number of people aged 60 years 
and over will increase from 605 million to 
two billion
developing markets now represent 
approximately 85 of the world population 
and over 20 of the world’s pharmaceutical 
revenues fasterdeveloping economies 
such as china india and brazil offer  
new opportunities for the pharmaceutical 
industry to help many more patients  
benefit from innovative medicines in 2013 
pharmaceutical revenues rose in developing 
markets while those in established markets 
were broadly static as the estimated 
pharmaceutical sales and market growth 
– 2017 diagram overleaf shows we expect 
this trend to continue 
unmet medical need 
in most established markets ageing 
populations and certain lifestyle choices 
such as smoking poor diet and lack of 
exercise are increasing the incidence of 
noncommunicable diseases ncds such 
as cardiovascular and metabolic diseases 
cancer and respiratory diseases which 
require longterm management in 2008 
almost twothirds of deaths globally were 
from ncds with 80 of these in lower 
and middleincome countries by 2030 it is 
estimated that the number of people dying 
from cardiovascular diseases will reach 
233 million a year while deaths from 
cancer will continue rising to an estimated 
131 million annually
data based on world market sales using astrazeneca market 
definitions as set out in the market definitions on page 232 
source ims health ims midas quantum q3 2013 including 
us data reported values and growth are based at cer 
value figures are rounded to the nearest billion and growth 
percentages of total actual value are rounded to the 
nearest tenth 
additional information financial statements corporate governance strategic report
13 astrazeneca annual report and form 20f information 2013 cost base it does so at a time when 
regulators and those who pay for our 
medicines are demanding more and better 
evidence of comparative effectiveness of 
compounds which increases development 
times and costs 
the industry is using the full range of 
innovative technologies to achieve and 
accelerate product approvals additionally 
greater emphasis is being placed on 
demonstrating proof of concept which 
delivers data to show that candidate 
drugs result in a clinical change with 
an acceptable endpoint or surrogate 
in patients
regulatory requirements 
our industry continues to be highly 
regulated this reflects public demand for 
safe effective and highquality medicines 
that are responsibly tested manufactured 
and commercialised the nature and 
geographic scope of our business requires 
us to maintain important relationships 
worldwide with health authorities that 
assess the safety efficacy and quality  
of medicines these include the fda  
in the us the ema in the eu the pmda  
in japan and the cfda in china 
in 2013 the fda implemented aspects 
of the prescription drug user fee act 
which was reauthorised in 2012 and eu 
authorities continued to implement the 
new pharmacovigilance legislation also 
introduced in 2012 these measures share 
the common goals of protecting patient 
safety creating greater transparency in 
regulation throughout a product’s lifecycle 
and taking more account of the patient 
perspective in the regulatory process 
there is also a global trend to increase 
public access to the documentation 
companies submit to health authorities 
to support marketing authorisations
so far as the development of biosimilars is 
concerned health authorities continue to 
face the challenge of developing robust 
standards to ensure their safety efficacy 
and quality for further information on 
biosimilars see the patent expiries and 
genericisation section opposite
there are ongoing efforts to harmonise 
regulations and achieve global convergence 
yet the number of regulations and their 
impact continue to multiply clinical  
trials that support the registration of 
products in a regulatory jurisdiction  
must be relevant to a variety of patient 
demographics programmes using foreign 
clinical trial data also need to meet each 
health authority’s requirements and be 
relevant to their population meanwhile 
health authorities continue to redefine 
patientsafety assessment processes  
in addition in emerging pharmaceutical 
markets health authorities are developing 
their own individual requirements and  
safety initiatives 
the growing complexity and globalisation 
of clinical studies and the pressure on 
industry and healthcare budgets has  
led to an increase in consortia including 
industry academia and regulators these 
are driving innovation and streamlining 
regulatory processes as well as defining 
and clarifying approval requirements for 
new technology and approaches such  
as phc they are also accelerating the 
development of treatments that address 
public health priorities 
in another trend following regulatory 
approval the safety and efficacy data  
of most medicines are being increasingly 
scrutinised by health technology 
assessment andor reimbursement 
bodies at a national level 
advances in science and technology 
innovation is critical if we are to address 
unmet medical need existing drugs will 
continue to be important in meeting the 
growing demand for healthcare particularly 
with the increasing use of generic 
medication at the same time advances 
in the understanding of diseases and the 
application of new technologies will be 
required to deliver new medicines 
such approaches include personalised 
healthcare phc and predictive science  
as well as other new types of therapy 
advances in the technologies for the design 
and testing of novel compounds herald 
fresh opportunities for using innovative 
small molecules as new medicines the use 
of large molecules or biologics has also 
become an important source of innovation 
with biologics among the most commercially 
successful new products forecasts for 
2018 predict that of the world’s top 100 
pharmaceutical products 51 of sales will 
come from biologics this compares with 
only 39 in 2012 and 17 in 2004 most 
pharmaceutical companies now pursue 
rd in both small molecules and biologics
the challenges
rd productivity
improving rd productivity is a critical 
challenge for the pharmaceutical industry 
global investment in pharmaceutical rd 
reached an estimated 135 billion in 2013 
a 53 increase from 88 billion in 2004 
however the annual growth in rd spend 
has slowed in recent years in contrast to 
the increase in spending the fda approved 
27 nmes in 2013 2012 39 which was in 
line with the annual average of 26 approvals 
over the past 10 years
to ensure the industry delivers a sustainable 
return on rd investment it is working 
to increase the probability of success in 
developing commercially viable new drugs 
and is moving to a lower more flexible 
estimated pharmaceutical sales
1
 and market growth
2
 – 2017
  e s t i mat e d p h a r ma c e u t i c a l  
sales – 2017
1
  estimated pharmaceutical market  
growth – 2012 to 2017
2
 
1
  exmanufacturer prices at cer source ims health
2
 compound annual growth rate source ims health
391bn
23
north america
217bn
09
europe eu
214bn
129
south east  east asia
119bn
12
latin america
106bn
33
japan
36bn
95
cis
32bn
117
africa
31bn
122
indian subcontinent
21bn
26
europe non eu
14bn
02
oceania
middle east
23bn
73
14 astrazeneca annual report and form 20f information 2013
strategic report  strategy  our marketplace however when applications are supported 
by strong data and compelling benefitrisk 
propositions regulators continue to approve 
drugs that address unmet medical need 
pricing pressure 
pricing and reimbursement continues  
to be highly challenging in many markets 
most pharmaceutical sales are generated  
in highly regulated markets where 
governments and private payers such as 
insurance companies exert various levels 
of control on pricing and reimbursement 
costcontainment including limitations on 
pharmaceutical spending continues to be 
a focus a wave of austerity programmes 
following the recent global economic 
downturn are further constraining 
healthcare providers and tougher economic 
conditions constrain those patients who 
pay directly for medicines additional 
challenges may arise if suppliers and 
distributors face creditrelated difficulties 
at the same time pharmaceutical 
companies require significant extra 
resources to demonstrate to payers the 
economic as well as therapeutic value  
of medicines
in 2013 pressures on pricing were driven 
by the implementation of drug price control 
mechanisms and other regulatory reforms 
issued the previous year for example the 
royal decree in spain and the balduzzi 
decree in italy as well as price 
renegotiations due to budget pressures 
particularly in france and belgium
in the us the affordable care act has 
already had a direct impact on healthcare 
activities despite the fact that many of the 
healthcare coverage expansion provisions 
of the affordable care act do not take 
effect until 2014 for example in 2010 there 
was an increase in the mandatory medicaid 
rebates in addition the pharmaceutical 
industry including astrazeneca is making 
prescription drugs more affordable to 
medicare beneficiaries through for 
example helping to close the coverage gap 
in the medicare part d prescription drug 
programme the industry continues to work 
with policymakers and regulators to help 
ensure they strike a balance between 
containing costs improving outcomes and 
promoting an environment that fosters 
medical innovation
in august 2011 as part of the bipartisan 
agreement to raise the federal debt  
ceiling the us congress created the  
joint select committee on deficit 
reduction committee the committee 
was empowered to recommend a package 
of 12 trillion in cost savings with the 
requirement that if the committee failed  
to reach an agreement the savings  
would be achieved through across  
the board spending cuts sequestration 
the committee discussions ended without 
reaching an agreement and the president 
and congress were subsequently unable 
to reach agreement thus sequestration 
took effect in march 2013 and impacts 
most federal government healthcare 
programmes with broad reductions in 
federal government spending 
in europe governments have continued 
to implement legislation on mandatory 
discounts clawbacks and referencing rules 
driving prices down especially in distressed 
economies such as greece and portugal 
in germany europe’s largest pharmaceutical 
market manufacturers are now required to 
prove the additional benefit of their drugs 
over existing alternatives if the additional 
benefit is not shown the drug is transferred 
to the german reference pricing system 
where for each drug group a single 
reimbursement level or reference price 
is set
in china pricing practices are high on the 
agenda of regulatory authorities 2013 was 
impacted by the continuation of the triennial 
maximum retail drug price review which 
began in 2012 and more pressure is 
expected in japan biennial cuts are 
expected to continue in latin america 
pricing is increasingly controlled by 
governments for example in colombia  
and venezuela 
more about the impact of price controls 
and reductions and of healthcare reform in 
the us can be found in the principal risks 
and uncertainties section from page 200  
the principal aspects of price regulation  
in our major markets are described further 
in the geographical review from page 214
patent expiries and genericisation 
the patents on some of the biggestselling 
drugs ever produced are expiring as a 
consequence payers physicians and 
patients in established markets have 
increased access to lowprice generic 
alternatives in many important classes  
of primary care drugs for example for 
prescriptions dispensed in the us in 2013 
generics constituted 86 of the market 
by volume 2012 84 
patents only protect pharmaceutical 
products for a finite period and the expiry 
or early loss of patents often leads to the 
availability of generics generic versions of 
drugs are very competitive with significantly 
lower pricing than the innovator equivalents 
this is partly due to lower investment by 
generic manufacturers in rd and market 
development while generic competition 
has traditionally occurred when patents 
expire it can also happen where the validity 
of patents is disputed or successfully 
challenged before expiry such early 
challenges have increased with generics 
companies increasingly willing to launch 
products ‘at risk’ for example prior to the 
resolution of the relevant patent litigation 
this trend is likely to continue resulting in 
significant market presence for the generic 
version during the period in which litigation 
remains unresolved even though the 
courts may subsequently rule that the 
innovative product is properly protected 
by a valid patent the unpredictable nature 
of patent litigation has led innovators to 
seek to settle such challenges on terms 
acceptable to both innovator and generic 
manufacturer however some competition 
authorities have sought to challenge the 
scope andor availability of this type of 
settlement agreement 
biologics have to date sustained longer 
lifecycles than traditional small molecule 
pharmaceuticals and have faced less 
generic competition with limited 
experience to date the substitution of 
biosimilars for the original branded product 
has not followed the same pattern as 
generic substitution in small molecule 
products and as a consequence erosion 
of branded market share has not been as 
rapid this is also due to a more complex 
manufacturing process for biologics 
compared with small molecule medicines 
in addition it is due to the inherent 
difficulties in producing a biosimilar which 
as a biological equivalent rather than an 
exact chemical copy could require additional 
clinical trials however with regulatory 
authorities in europe and the us continuing 
to implement abbreviated approval 
pathways for biosimilar versions innovative 
biologics are likely to become increasingly 
subject to competition from biosimilars
building trust 
the pharmaceutical industry faces 
challenges in building and maintaining 
trust particularly with governments and 
regulators the past decade has seen 
a significant increase in the number of 
settlements between innovator companies 
and governmental and regulatory authorities 
for violating various laws companies are 
taking steps to address this reputational 
challenge by embedding a culture of ethics 
and integrity adopting higher standards 
of governance and improving relationships 
with employees shareholders and 
other stakeholders
in july 2013 it emerged that a number 
of companies including pharmaceutical 
businesses were under investigation by 
the china public security bureau following 
allegations of bribery and criminal offences 
investigations by the doj and sec under 
the foreign corrupt practices act are 
also continuing
additional information financial statements corporate governance strategic report
15 astrazeneca annual report and form 20f information 2013 our strategic priorities
our strategic priorities define how we are responding to the 
external environment and focusing our efforts and resources 
to ensure we can deliver our purpose 
we also have a strong position in china 
and other emerging markets we combine 
a global reach with local customer 
relationships and are pioneering new 
customerfocused commercial models
we need to build on these strong 
foundations we also have to address  
some key challenges astrazeneca is faced 
with a number of significant patent expiries 
in the coming years and we must improve 
our rd productivity by delivering more 
products successfully from our phase iii 
pipeline once medicines are approved for 
use we need to improve the way in which 
we launch products organisationally we 
need to reduce our costs change our 
culture and simplify and improve the way 
we work
innovation and growth
our strategic priorities are focused on 
innovation and returning to growth they 
are based on
  scienceled innovation
  a broad rd platform built on three  
core therapy areas
  a balanced portfolio of specialty and 
primary care products
  a global commercial presence with 
strength in emerging markets
strategic rd centres
in march 2013 as part of our strategy we 
announced plans to invest in strategic rd 
centres in gaithersburg maryland us in 
cambridge uk and in mölndal sweden 
our aim is to improve pipeline productivity 
and to establish astrazeneca as a global 
leader in biopharmaceutical innovation 
the centres are a major investment 
designed to locate more of our scientists 
close to globally recognised bioscience 
clusters bring teams together to improve 
collaboration and simplify our footprint 
and so reduce complexity and eliminate 
unnecessary cost
in june 2013 we confirmed that our new 
ukbased global rd centre and corporate 
headquarters will be located at the 
cambridge biomedical campus on the 
outskirts of the city the planned 
investment of around 515 million is 
expected to be completed by 2016
it is planned that rd work will no longer 
be carried out at our alderley park site in 
the uk over the next three years around 
1600 roles will relocate from alderley park 
with a significant majority going to the new 
centre in cambridge and the remainder  
to our nearby macclesfield facility or sites 
outside the uk at least 700 nonrd roles 
are expected to remain at alderley park  
we will explore all options to ensure 
alderley park has a successful future
in the us a number of roles have already 
relocated to our facility in gaithersburg 
while most of the others will move during 
2014 our site in wilmington delaware will 
remain our north america commercial 
headquarters
restructuring
since 2007  we have undertaken  
significant efforts to restructure and 
reshape our business to improve longterm 
competitiveness the first phase was 
completed in 2009 the second phase 
began in 2010 and the restructuring  
actions were completed in 2011
at our investor day we described how 
we were transforming the way we work 
to deliver our strategy by simplifying the 
organisation and its processes while 
creating an innovative environment  
we continue to drive productivity 
improvements across the organisation 
removing complexity creating additional 
headroom to invest in the pipeline and  
key growth platforms and ensuring  
returns to our shareholders
in march 2013 we announced a 
restructuring programme which was 
combined with the third phase of the 
programme announced in february 2012  
to create a combined phase 4 programme 
it initially entailed an estimated global 
headcount reduction of about 5050 over 
the 2013–2016 period the combined 
programme of changes was estimated to 
incur 23 billion in onetime restructuring 
charges of which 17 billion were 
expected to be cash costs in 2013 the 
company continued to implement the 
phase 4 programme incurring costs of 
14 billion and delivering approximately 
400 million of annualised benefits the 
overall phase 4 programme remains on 
track to deliver approximately 800 million 
anticipated annual benefits by the end of 
2016 total costs for this programme are 
now anticipated to be approximately 
200 million higher at 25 billion
we believe that biopharmaceuticals 
remains an attractive business with strong 
underlying drivers of demand expanding 
and ageing populations a growing chronic 
disease burden and increasing wealth 
through economic growth especially in 
emerging markets while the hurdles to 
adopting new products have increased 
people are still willing to pay for 
differentiated innovative medicines that 
transform lives
in response to these circumstances and as 
we announced at our investor day in march 
2013 we have made a clear set of choices 
we will
  focus our rd and commercial 
investments
  prioritise and accelerate promising 
assets and business development
  transform our innovation model and 
the way we work
we will do this through our strategic 
priorities which are to
1 achieve scientific leadership
2 return to growth
3 be a great place to work
the table from page 18 examines our 
strategic priorities in more detail explains 
what they mean and how we are 
implementing them
distinctive capabilities
our chosen priorities reflect our belief that 
astrazeneca has the skills and capabilities 
to take advantage of the opportunities 
that exist
pipeline and science few pharmaceutical 
companies can match our combination of 
capabilities in small molecules biologics 
immunotherapies and protein engineering 
these capabilities allow us to produce 
combination therapies such as drug 
antibody conjugates and customisable 
molecules targeted to specific patient 
populations we also have good underlying 
discovery science and strong disease 
knowledge research portfolios and related 
technology platforms in a number of areas
commercial presence over the past 
decade we have developed strong 
commercial franchises that address 
oncology cardiovascular metabolic and 
respiratory diseases we have a significant 
commercial capability in primary care 
16 astrazeneca annual report and form 20f information 2013
strategic report  strategy  the phase 4 programme has been 
expanded to include additional activities 
such as a transformation of our it 
organisation and infrastructure the exit of 
rd activities in bangalore india and the 
exit from branded generics in certain 
emerging markets to further reduce costs 
and increase flexibility when completed  
the expansion of the restructuring 
programme is expected to deliver a further 
300 million in annual benefits by the end of 
2016 bringing total anticipated annualised 
benefits of the phase 4 programme to 
1 1 billion total incremental programme 
costs from these new initiatives are 
estimated to be 700 million of which 
600 million is cash bringing the total 
anticipated cost of our phase 4 programme 
to 32 billion the expansion of the 
programme is estimated to affect 
approximately 550 positions bringing the 
total global headcount reduction under the 
phase 4 programme to around 5600 over 
the 2013–2016 period 
final estimates for programme costs 
benefits and headcount impact in all 
functions are subject to completion of  
the requisite consultation in the various 
areas many of which have already  
begun our priority as we undertake these 
restructuring initiatives is to work with  
our affected employees on the proposed 
changes acting in accordance with 
relevant local consultation requirements 
and employment law
outlook 
as outlined above our strategy is focused 
on innovation and returning to growth 
in support of this we have made some 
choices around our three strategic 
priorities we have also been explicit about 
our immediate priorities midterm goals 
and longterm aspirations 
as we experience a period of patent 
expiries and declining revenue our 
  immediate priorities are to drive our 
onmarket revenues through investment 
in our growth platforms and our portfolio 
of onmarket brands these include 
products in our three core therapy areas 
and a focus on the emerging markets 
and japan we are also pursuing 
business development and investment 
in rd we have already accelerated  
a number of projects and progressed  
them into phase iii development
  midterm goals to 2016 are to progress 
our phase ii pipeline and exploit the 
potential of our biologics portfolio 
  longterm aspirations to 2020 and 
beyond in line with our strategic ambition 
is to achieve scientific leadership and 
sustainable growth including the launch 
of two nmes annually 
financial expectations
in february 2014 we updated our financial 
expectations which superseded all 
previous guidance and planning 
assumptions
  we expect a lowtomid single digit 
percentage decline in revenue at cer 
for 2014 with a marginally lower core 
gross margin
  in percentage terms core eps for 2014 
is expected to decline in the teens at cer
  we expect revenues in 2017 will be 
broadly in line with 2013
these expectations involve a number  
of assumptions including among other 
things nexium us generic launch in  
may 2014
what differentiates astrazeneca
we believe that in implementing our strategic priorities we can achieve  
the following
  a differentiated strategy a pureplay innovationscience strategy combined 
with global commercial scale
  growth levers internal growth platforms brilinta emerging markets our 
diabetes portfolio our respiratory franchise and japan can return the company 
to growth accelerated by focused business development 
  pipeline potential we expect our promising phase ii pipeline to advance to  
a strong latestage portfolio by 2016
  refocused delivery refocusing efforts on three core therapy areas resources 
and business development efforts prioritised for growth and innovation 
  sustainability bold steps being taken to transform our rd innovation model 
culture and operating model
  shareholder returns productivity improvement and commitment to our 
progressive dividend policy
our strategic priorities are focused on 
innovation and returning to growth
they are to
1 achieve scientific leadership
2 return to growth
3 be a great place to work
the table overleaf examines our strategic priorities in 
more detail explains what they mean and how we are 
implementing them
additional information financial statements corporate governance strategic report
17 astrazeneca annual report and form 20f information 2013 1 achieve scientific leadership
what do we need to do how are we implementing this for more information
focus on distinctive 
science in three core 
therapy areas
we are focusing on cardiovascular and metabolic diseases oncology  
and respiratory inflammation and autoimmunity supplemented by  
an opportunitydriven approach to infection neuroscience and 
gastrointestinal diseases
we work across biologics small molecules immunotherapies and  
protein engineering
therapy area review 
from page 48
prioritise and 
accelerate our pipeline
we are accelerating and investing in key projects advancing promising 
projects from our phase ii pipeline with more than 20 nmes looking  
ahead we will focus our resources on our most promising assets 
our aim is for five to seven nme phase iii starts by the end of 2014 in the 
medium term we will target one or more nme launches annually and longer 
term two nmes annually 
our development 
pipeline section from 
page 194
transform our 
innovation and  
culture model
we have created two autonomous biotech units medimmune and 
innovative medicines and early development imed to drive science  
and innovation we are recruiting for these organisations we have also 
established a clinical development group called global medicines 
development gmd
research and 
development section 
from page 36
we are increasing our emphasis on novel science such as  
immunemediated therapy combinations and phc
research and 
development section 
from page 36
we are increasing our proximity to bioscience clusters and colocating around 
three strategic sites in gaithersburg maryland us cambridge uk and 
mölndal sweden
our strategic priorities 
section on page 16
2 return to growth
what do we need to do how are we implementing this for more information
focus on key  
growth platforms
brilinta – we are working to deliver brilinta’s potential to reduce the number 
of cardiovascular deaths with leadership plans for the us and markets 
globally and further clinical studies 
cardiovascular and 
metabolic disease 
section on page 52
diabetes – we are working to maximise the potential of our broad  
innovative noninsulin antidiabetic portfolio to become a leader in the 
treatment of diabetes
cardiovascular and 
metabolic disease 
section on page 52
emerging markets – we are refocusing our efforts on innovative medicines 
accelerating our investment in emerging market capabilities with a focus  
on china and 15 top markets broadening our reach through multichannel 
marketing and transforming our capabilities to support new products eg 
market access and patient affordability
sales and marketing 
section on page 40
respiratory – we are working to maximise the opportunity of our ‘endto
end’ strengths in medicines pipelines and devices to meet significant 
medical need and the opportunity for growth in asthma and copd
 r e s pi r a t or y  
inflammation and 
autoimmunity section 
on page 58
japan – we are building on our leading oncology franchise and working to 
maximise our success with launches across the diabetes portfolio and with 
symbicort brilinta nexium and crestor
sales and marketing 
section on page 40
accelerate through 
business development
we are seeking to accelerate growth through larger scale product 
inlicensing and partnerships and with bolton acquisitions
sales and marketing 
section on page 40
transform through 
specialty care and 
biologics
our development pipeline is now half small molecules and half biologics 
we need to convert our strong biologics pipeline into future launches and to 
create a specialty care product portfolio that balances our historic strength 
in primary care
therapy area review 
overview from  
page 48
18 astrazeneca annual report and form 20f information 2013
strategic report  strategy  our strategic priorities 3 be a great place to work
what do we need to do how are we implementing this for more information
focus on simplification 
of our business
we have introduced a flatter organisational structure to drive accountability 
and improve decision making and communication
we are developing simpler more efficient processes such as in  
business planning
employees section 
from page 66
drive continued 
productivity 
improvements
we are restructuring and reshaping to deliver our scienceled site strategy 
and improve longterm competitiveness
employees section 
from page 66
evolve our culture
we are engaging with employees to promote understanding and belief in 
our strategy
we will retain the best of our existing culture and change those aspects  
that hold us back by embedding our new values and behaviours in the 
organisation and in our performance management system
we are increasing our focus on talent and leadership development with 
tailored programmes for leaders throughout the organisation
employees section 
from page 66
we also need to
achieve our group financial targets
what do we need to do how are we implementing this for more information
drive onmarket value
we are investing in onmarket growth platforms to return to growth we aim 
to maintain sectorleading productivity by restructuring to create scope for 
investment and a flexible cost base 
financial review  
from page 74
maintain a progressive 
dividend
our dividend policy is to maintain or grow dividend per share financial review  
from page 74
maintain a strong 
balance sheet
we target a strong investment grade credit rating operational cash balance 
and periodic share repurchases
financial review  
from page 74
our work is supported by
accelerated business development
our focus is on strategically aligned valueenhancing business development notably 
  increasing earlystage research deals and academic alliances 
  exploring valuecreating peer collaborations 
  pursuing partnering inlicensing and bolton acquisitions to strengthen our core therapy area portfolios
our relationships 
section from  
page 70
doing business responsibly
we are committed to being a responsible company working with integrity and delivering sustainable 
business development we have identified three areas for special focus
  access to healthcare
  diversity
  environment
responsible business 
section from  
page 220
additional information financial statements corporate governance strategic report
19 astrazeneca annual report and form 20f information 2013 key performance indicators
how did we perform against the indicators by  
which we measure our success
kpi 2012 2013 commentary
achieve group financial targets
see the financial review from page 74 
for more information 
revenue 27 973 million 25711 million the key growth platforms brilinta the diabetes franchise respiratory 
emerging markets and japan delivered an incremental 12 billion of 
revenue this was more than offset by the impact of patent expiries 
which reduced revenue by 22 billion
cash flow from operating activities 6948 million 7 400 million lower tax and interest payments partially offset the lower operating 
profit in 2013 after adjusting for impairments and noncash costs while 
working capital movements and a oneoff pension fund contribution 
drove higher outflows in the prior year
core eps 683 505 the decline in eps was greater than the decline in revenue primarily  
due to the expenditure in the company’s key growth platforms and 
strengthened pipeline
dividend per share 280 280 met target of holding or growing dividend per share
achieve scientific leadership
see the research and development 
section from page 36 and therapy area 
review from page 48 for more 
information 
phase iii investment decisions lesinurad entered phase iii clinical 
development following the acquisition of 
ardea positive phase iii investment 
decisions achieved for moxetumomab 
pasudotox and brodalumab 
three positive decisions for benralizumab selumetinib  
and olaparib
on target to have five to seven projects in phase iii by the end of 2014 
decisions helped us achieve our 2016 target volume for our phase iii 
pipeline three years ahead of schedule
nme major submissions quadrivalent live attenuated influenza 
vaccine medi3250 maa nexium otc 
and dapagliflozinmetformin ir fdc eu 
casodex oral tablet nexium 
helicobacter pylori and arimidex oral 
dispersible film submitted japan
three submissions for olaparib eu and naloxegol  
us and eu
submissions contribute to meeting target of at least one nme launch 
per year by 20152016 and sustainable delivery of two nmes annually 
by 2020
external licensing andor acquisition 
opportunities in phase iii
seven opportunities through amgen 
amg181medi7183 amg557
medi5872 amg157medi9929 
amg139medi2070 gelesis inc 
attiva ardelyx inc azd1722 and  
isis pharmaceuticals inc azd9150
four opportunities through alphacore amplimmune 
pearl therapeutics pt010 and merck mk1775
azd1775
licensing andor acquisition opportunities contribute to meeting target 
of sustainable delivery of two nmes annually by 2020
latestage external licensing andor 
acquisition opportunities
five opportunities including amgen 
brodalumab ardea lesinurad amylin 
metreleptin and ironwood linaclotide
three opportunities through pearl therapeutics pt003 
omthera epanova and fibrogen roxadustatfg4592
licensing andor acquisition opportunities helped us achieve our 2016 
target volume for our phase iii pipeline three years ahead of schedule 
and contribute to meeting target of sustainable delivery of two nmes 
annually by 2020
nme phase ii startsprogressions eight starts – tralokinumab medi7183 
azd5847 azd5213 azd3241 
fostamatinib azd8931 and azd2115
eleven starts including azd1722 medi2070 azd4901 
tremelimumab azd2014 rdea3170 azd5069 
azd5213 medi8968 and two phase i expansion projects 
with patients dosed
phase ii starts and progressions contribute to meeting target of 
sustainable delivery of two nmes annually by 2020
 restated for new core definition and adoption of ias 19 2011 as detailed on pages 136 and 224
 first and second interim dividend for the year
20 astrazeneca annual report and form 20f information 2013
strategic report  strategy kpi 2012 2013 commentary
achieve group financial targets
see the financial review from page 74 
for more information 
revenue 27 973 million 25711 million the key growth platforms brilinta the diabetes franchise respiratory 
emerging markets and japan delivered an incremental 12 billion of 
revenue this was more than offset by the impact of patent expiries 
which reduced revenue by 22 billion
cash flow from operating activities 6948 million 7 400 million lower tax and interest payments partially offset the lower operating 
profit in 2013 after adjusting for impairments and noncash costs while 
working capital movements and a oneoff pension fund contribution 
drove higher outflows in the prior year
core eps 683 505 the decline in eps was greater than the decline in revenue primarily  
due to the expenditure in the company’s key growth platforms and 
strengthened pipeline
dividend per share 280 280 met target of holding or growing dividend per share
achieve scientific leadership
see the research and development 
section from page 36 and therapy area 
review from page 48 for more 
information 
phase iii investment decisions lesinurad entered phase iii clinical 
development following the acquisition of 
ardea positive phase iii investment 
decisions achieved for moxetumomab 
pasudotox and brodalumab 
three positive decisions for benralizumab selumetinib  
and olaparib
on target to have five to seven projects in phase iii by the end of 2014 
decisions helped us achieve our 2016 target volume for our phase iii 
pipeline three years ahead of schedule
nme major submissions quadrivalent live attenuated influenza 
vaccine medi3250 maa nexium otc 
and dapagliflozinmetformin ir fdc eu 
casodex oral tablet nexium 
helicobacter pylori and arimidex oral 
dispersible film submitted japan
three submissions for olaparib eu and naloxegol  
us and eu
submissions contribute to meeting target of at least one nme launch 
per year by 20152016 and sustainable delivery of two nmes annually 
by 2020
external licensing andor acquisition 
opportunities in phase iii
seven opportunities through amgen 
amg181medi7183 amg557
medi5872 amg157medi9929 
amg139medi2070 gelesis inc 
attiva ardelyx inc azd1722 and  
isis pharmaceuticals inc azd9150
four opportunities through alphacore amplimmune 
pearl therapeutics pt010 and merck mk1775
azd1775
licensing andor acquisition opportunities contribute to meeting target 
of sustainable delivery of two nmes annually by 2020
latestage external licensing andor 
acquisition opportunities
five opportunities including amgen 
brodalumab ardea lesinurad amylin 
metreleptin and ironwood linaclotide
three opportunities through pearl therapeutics pt003 
omthera epanova and fibrogen roxadustatfg4592
licensing andor acquisition opportunities helped us achieve our 2016 
target volume for our phase iii pipeline three years ahead of schedule 
and contribute to meeting target of sustainable delivery of two nmes 
annually by 2020
nme phase ii startsprogressions eight starts – tralokinumab medi7183 
azd5847 azd5213 azd3241 
fostamatinib azd8931 and azd2115
eleven starts including azd1722 medi2070 azd4901 
tremelimumab azd2014 rdea3170 azd5069 
azd5213 medi8968 and two phase i expansion projects 
with patients dosed
phase ii starts and progressions contribute to meeting target of 
sustainable delivery of two nmes annually by 2020
 restated for new core definition and adoption of ias 19 2011 as detailed on pages 136 and 224
 first and second interim dividend for the year
additional information financial statements corporate governance strategic report
21 astrazeneca annual report and form 20f information 2013 kpi 2012 2013 growth cer commentary
return to growth
see the geographical review from  
page 214 for more information 
brilinta 89 million 283 million sales of brilinta 216 brilinta continues to grow globally the us remains our priority for  
brilinta and there are challenges still to be overcome
diabetes franchise 451 million 787 million sales across 
diabetes franchise
75 diabetes revenues grew globally last year and we are stepping up our 
investment and improving execution of our plans
emerging markets 5095 million 5389 million sales in 
emerging markets
8 revenue growth met our ambition of high single digit growth at cer 
with growth in china of 19 over the year
respiratory 4415 million 4677 million sales across 
respiratory portfolio
7 symbicort drove growth with a strong performance in the us japan 
and emerging markets
japan 2904 million 2485 million sales in 
japan
4 growth at cer was helped by the performance of symbicort  
and nexium
be a great place to work
see the employees section from  
page 66 for more information 
organisational structure – percentage of 
employees within six management steps 
of ceo
40 70 this is a key indicator of our progress in driving accountability and 
improving decision making and communication
employee belief in company strategy 68
source global focus allemployee 
survey
84
source january 2014 pulse survey across a sample of 
the organisation
this is a key indicator of employee engagement belief level is in line  
with the pharmaceutical sector norm
responsible business
see the responsible business section 
from page 220 for more information 
dow jones sustainability index ranking top 7 of companies top 3 of companies met target of maintaining position in the dow jones sustainability and 
world indexes comprising the top 10 of the largest 2500 companies 
with a score of 85
confirmed breaches of external sales and 
marketing codes or regulations globally
10 confirmed breaches 11 confirmed breaches continue to report and learn lessons from confirmed breaches of 
external codes arising from external scrutiny and voluntary disclosure 
by astrazeneca
number of supplier audits conducted 482 audits 61 audits undertaking a riskbased programme of audits across all supplier 
categories and geographies ensures expectations of suppliers set  
down in our global responsible procurement standard are met
22 astrazeneca annual report and form 20f information 2013
strategic report  strategy  key performance indicators kpi 2012 2013 growth cer commentary
return to growth
see the geographical review from  
page 214 for more information 
brilinta 89 million 283 million sales of brilinta 216 brilinta continues to grow globally the us remains our priority for  
brilinta and there are challenges still to be overcome
diabetes franchise 451 million 787 million sales across 
diabetes franchise
75 diabetes revenues grew globally last year and we are stepping up our 
investment and improving execution of our plans
emerging markets 5095 million 5389 million sales in 
emerging markets
8 revenue growth met our ambition of high single digit growth at cer 
with growth in china of 19 over the year
respiratory 4415 million 4677 million sales across 
respiratory portfolio
7 symbicort drove growth with a strong performance in the us japan 
and emerging markets
japan 2904 million 2485 million sales in 
japan
4 growth at cer was helped by the performance of symbicort  
and nexium
be a great place to work
see the employees section from  
page 66 for more information 
organisational structure – percentage of 
employees within six management steps 
of ceo
40 70 this is a key indicator of our progress in driving accountability and 
improving decision making and communication
employee belief in company strategy 68
source global focus allemployee 
survey
84
source january 2014 pulse survey across a sample of 
the organisation
this is a key indicator of employee engagement belief level is in line  
with the pharmaceutical sector norm
responsible business
see the responsible business section 
from page 220 for more information 
dow jones sustainability index ranking top 7 of companies top 3 of companies met target of maintaining position in the dow jones sustainability and 
world indexes comprising the top 10 of the largest 2500 companies 
with a score of 85
confirmed breaches of external sales and 
marketing codes or regulations globally
10 confirmed breaches 11 confirmed breaches continue to report and learn lessons from confirmed breaches of 
external codes arising from external scrutiny and voluntary disclosure 
by astrazeneca
number of supplier audits conducted 482 audits 61 audits undertaking a riskbased programme of audits across all supplier 
categories and geographies ensures expectations of suppliers set  
down in our global responsible procurement standard are met
additional information financial statements corporate governance strategic report
23 astrazeneca annual report and form 20f information 2013 risk overview
what might challenge the delivery of our strategic priorities
context specific risks we face
possible  
impacts risk management actions
link to  
strategic priority
risk product pipeline
the development of any 
pharmaceutical product candidate is 
a complex risky and lengthy process 
involving significant financial rd 
and other resources 
each project may fail or be delayed  
at any stage of the process due to  
a number of factors
  failure to meet development targets
  difficulties in obtaining and maintaining regulatory approvals for new products 
  failure to obtain and enforce effective ip protection 
  delay to new product launches 
  strategic alliances and acquisitions may be unsuccessful
  reduced 
longterm 
growth revenue  
and profit
  diminished 
reputation rd 
capability
  focus on distinctive science in three core therapy areas with strong capabilities
  prioritise and accelerate our pipeline
  strengthen pipeline through rd licensing alliances and scientific partnering
  transform our innovation model and culture 
  focus on simplification 
  drive continued productivity improvements
  active management of ip rights
achieve scientific 
leadership 
return to growth
be a great place  
to work
achieve group  
financial targets
risk commercialisation and business execution
the successful launch of a new 
pharmaceutical product involves 
substantial investment in sales and 
marketing activities launch stocks 
and other items the commercial 
success of our new medicines is  
of particular importance to replace 
lost sales following patent expiry
we may ultimately be unable to 
achieve commercial success for  
any number of reasons
  challenges to achieving commercial  
success of new products
  illegal trade in our products 
  developing our business in emerging 
markets
  expiry or loss of or limitations to ip rights
  pressures resulting from generic  
competition
  negative effect of patent litigation  
in respect of ip rights
  price controls and reductions
  economic regulatory and political  
pressures
  abbreviated approval processes for 
biosimilars
  increasing implementation and 
enforcement of more stringent antibribery 
and anticorruption legislation
  any expected gains from productivity 
initiatives are uncertain
  changes in leadership failure to attract 
and retain key personnel and failure to 
successfully engage with our employees 
  failure of information technology and 
cybercrime
  failure of outsourcing
  reduction in 
market share and 
longterm growth
  diminished 
reputation and 
employee 
engagement
  loss of revenue 
profit and cash 
flows
  focus on key growth platforms
  accelerate through business development and strategic partnerships and alliances
  transform through specialty carebiologics
  focus on simplification 
  drive continued productivity improvements
  evolve our culture
  active management of ip rights
  reimbursement and pricing – demonstrating value of medicineshealth economics
  relocation to strategic science hubs
return to growth
be a great place  
to work
achieve group  
financial targets
risk supply chain and delivery
we may experience difficulties and  
delays in manufacturing our products 
particularly biologics and there  
may be a failure in supply from  
third parties
  manufacturing biologics
  difficulties and delays in manufacturing distribution and sale of our products
  reliance on third party goods
  delays in planned 
activities
  loss of sales  
and revenue
  quality management systems
  contingency plans including dual sourcing multiple suppliers and stock levels
  supplier audit programme
  business continuity initiatives disaster and crisis management continuity and data 
recovery and emergency response plans
return to growth
achieve group  
financial targets
risk legal regulatory and compliance
any failure to comply with applicable 
laws rules and regulations may  
result in civil andor criminal legal 
proceedings andor regulatory 
sanctions
  adverse outcome of litigation andor governmental investigations
  potentially significant product liability claims
  failure to adhere to applicable laws rules and regulations 
  environmental and occupational health and safety liabilities
  misuse of social media platforms and new technology
  diminished 
reputation
  reduction  
in profit
  strong ethical and compliance culture and infrastructure incorporating all elements 
of compliance framework
  code of conduct and global policies and standards provide controls for major risks
  training for all directorsemployees 
  management oversight compliance monitoring and audit programmes to assure 
compliance
  independent reporting channels for employees to voice any concerns confidentially
  robust investigation of alleged breaches followed by appropriate corrective actions
  due diligence reviews on acquisitions and integration plans
be a great place  
to work
achieve group  
financial targets
risk economic and financial
operating in over 100 countries  
we are subject to political  
socioeconomic and financial  
factors both globally and in individual 
countries
  adverse impact of a sustained economic downturn
  political and socioeconomic conditions 
  impact of fluctuations in exchange rates 
  limited third party insurance coverage
  taxation
  pensions
  financial expectations
  loss of revenue 
profit cash flows 
and ability to 
access funding
  strategicfinancial management actions eg monitoring and analysis of market 
conditions competitors and their strategies
  financial risk management 
achieve group  
financial targets
24 astrazeneca annual report and form 20f information 2013
strategic report  strategy we face a diverse range of risks and uncertainties that may adversely affect any one or more parts of our business and prevent 
us achieving our objectives our approach to risk management is designed to encourage clear decision making on which risks  
we take as a business and how we manage risk informed by an understanding of the commercial financial compliance legal  
and reputational implications
we outline below the main risks that could have a material adverse effect on the business or results of operations we have  
also listed how these risks link to our strategic priorities and some of the management actions taken in response for a more  
comprehensive description please see the risk section from page 199
context specific risks we face
possible  
impacts risk management actions
link to  
strategic priority
risk product pipeline
the development of any 
pharmaceutical product candidate is 
a complex risky and lengthy process 
involving significant financial rd 
and other resources 
each project may fail or be delayed  
at any stage of the process due to  
a number of factors
  failure to meet development targets
  difficulties in obtaining and maintaining regulatory approvals for new products 
  failure to obtain and enforce effective ip protection 
  delay to new product launches 
  strategic alliances and acquisitions may be unsuccessful
  reduced 
longterm 
growth revenue  
and profit
  diminished 
reputation rd 
capability
  focus on distinctive science in three core therapy areas with strong capabilities
  prioritise and accelerate our pipeline
  strengthen pipeline through rd licensing alliances and scientific partnering
  transform our innovation model and culture 
  focus on simplification 
  drive continued productivity improvements
  active management of ip rights
achieve scientific 
leadership 
return to growth
be a great place  
to work
achieve group  
financial targets
risk commercialisation and business execution
the successful launch of a new 
pharmaceutical product involves 
substantial investment in sales and 
marketing activities launch stocks 
and other items the commercial 
success of our new medicines is  
of particular importance to replace 
lost sales following patent expiry
we may ultimately be unable to 
achieve commercial success for  
any number of reasons
  challenges to achieving commercial  
success of new products
  illegal trade in our products 
  developing our business in emerging 
markets
  expiry or loss of or limitations to ip rights
  pressures resulting from generic  
competition
  negative effect of patent litigation  
in respect of ip rights
  price controls and reductions
  economic regulatory and political  
pressures
  abbreviated approval processes for 
biosimilars
  increasing implementation and 
enforcement of more stringent antibribery 
and anticorruption legislation
  any expected gains from productivity 
initiatives are uncertain
  changes in leadership failure to attract 
and retain key personnel and failure to 
successfully engage with our employees 
  failure of information technology and 
cybercrime
  failure of outsourcing
  reduction in 
market share and 
longterm growth
  diminished 
reputation and 
employee 
engagement
  loss of revenue 
profit and cash 
flows
  focus on key growth platforms
  accelerate through business development and strategic partnerships and alliances
  transform through specialty carebiologics
  focus on simplification 
  drive continued productivity improvements
  evolve our culture
  active management of ip rights
  reimbursement and pricing – demonstrating value of medicineshealth economics
  relocation to strategic science hubs
return to growth
be a great place  
to work
achieve group  
financial targets
risk supply chain and delivery
we may experience difficulties and  
delays in manufacturing our products 
particularly biologics and there  
may be a failure in supply from  
third parties
  manufacturing biologics
  difficulties and delays in manufacturing distribution and sale of our products
  reliance on third party goods
  delays in planned 
activities
  loss of sales  
and revenue
  quality management systems
  contingency plans including dual sourcing multiple suppliers and stock levels
  supplier audit programme
  business continuity initiatives disaster and crisis management continuity and data 
recovery and emergency response plans
return to growth
achieve group  
financial targets
risk legal regulatory and compliance
any failure to comply with applicable 
laws rules and regulations may  
result in civil andor criminal legal 
proceedings andor regulatory 
sanctions
  adverse outcome of litigation andor governmental investigations
  potentially significant product liability claims
  failure to adhere to applicable laws rules and regulations 
  environmental and occupational health and safety liabilities
  misuse of social media platforms and new technology
  diminished 
reputation
  reduction  
in profit
  strong ethical and compliance culture and infrastructure incorporating all elements 
of compliance framework
  code of conduct and global policies and standards provide controls for major risks
  training for all directorsemployees 
  management oversight compliance monitoring and audit programmes to assure 
compliance
  independent reporting channels for employees to voice any concerns confidentially
  robust investigation of alleged breaches followed by appropriate corrective actions
  due diligence reviews on acquisitions and integration plans
be a great place  
to work
achieve group  
financial targets
risk economic and financial
operating in over 100 countries  
we are subject to political  
socioeconomic and financial  
factors both globally and in individual 
countries
  adverse impact of a sustained economic downturn
  political and socioeconomic conditions 
  impact of fluctuations in exchange rates 
  limited third party insurance coverage
  taxation
  pensions
  financial expectations
  loss of revenue 
profit cash flows 
and ability to 
access funding
  strategicfinancial management actions eg monitoring and analysis of market 
conditions competitors and their strategies
  financial risk management 
achieve group  
financial targets
additional information financial statements corporate governance strategic report
25 astrazeneca annual report and form 20f information 2013 governance and remuneration
how does the way we are governed support the delivery  
of our strategy
governance
good governance is crucial to ensuring we are well managed and can deliver our strategic priorities
the board
chairman leif johansson  senior independent nonexecutive director john varley
all directors are collectively responsible for the success of astrazeneca in addition the nonexecutive directors are responsible 
for exercising independent and objective judgement and for scrutinising and challenging management
the board is responsible for setting our strategy and policies for oversight of risk and corporate governance and for monitoring 
progress towards meeting our annual plans it is accountable to our shareholders for the proper conduct of the business and our 
longterm success it represents the interests of all stakeholders
the board has delegated some of its powers to four principal committees and the ceo
members of the board and their biographies are shown on pages 28 to 29
further details from page 88
nomination and 
governance committee
audit committee remuneration 
committee
science committee
chairman leif johansson chairman rudy markham chairman john varley chairman nancy rothwell
talented people are critical  
to the delivery of the group’s 
strategy the nomination and 
governance committee’s 
role is to recommend new 
board appointments to  
the board and to consider 
more broadly succession 
planning to senior executive 
management and board 
positions the nomination 
and governance committee 
also advises the board on 
significant developments in 
corporate governance
to deliver the group’s 
strategy we must have sound 
financial and nonfinancial 
controls the audit 
committee is responsible  
for reviewing our financial 
reporting internal controls 
compliance with laws and  
our relationship with our 
external auditor as well as  
risk management
we seek to attract retain 
and develop the highest
calibre talent while paying  
no more than is necessary 
the group’s short and 
longterm incentive plans 
are closely linked to our 
strategic and financial  
goals and the delivery of 
sustainable shareholder 
value the remuneration 
committee is responsible  
for the group’s remuneration 
policy which supports the 
delivery of our strategy
achieving scientific 
leadership is key to our 
strategic success the 
science committee provides 
assurance to the board 
regarding the group’s rd 
activities by reviewing and 
assessing our approaches in 
our chosen therapy areas 
the scientific technology and 
rd capabilities we deploy 
the quality and development 
of our scientists and our 
decision making
further details from page 93 further details from page 92 further details from page 92 further details from page 93
ceo pascal soriot
the senior executive team set comprises
ceo cfo 9 executive vicepresidents general counsel chief compliance officer
the set is the body through which the ceo exercises the authority delegated to him by the board it considers major business 
issues and makes recommendations to the ceo and typically also reviews those matters which are to be submitted to the board 
for its consideration the ceo is responsible for establishing and chairing the set
biographies of the members of the set are shown on pages 30 to 31
26 astrazeneca annual report and form 20f information 2013
strategic report  strategy remuneration
we seek to create sustainable growth in shareholder value by developing and 
executing a remuneration strategy that supports the successful implementation  
of our business strategy
the progress and success of our strategy will be measured against three key  
areas achieve scientific leadership return to growth and achieve group financial 
targets during 2013 the remuneration committee reviewed the group’s short  
and longterm performance incentive plans for the executive directors and senior 
management to ensure that they supported the delivery of these goals
the key components of astrazeneca’s remuneration strategy for executive directors 
are set out below full details of the directors’ remuneration are outlined in the 
directors’ remuneration report from page 102
item policylink to strategyperformance measures
base pay to be sufficient but no more than necessary to attract 
retain and develop highcalibre talent to achieve our strategy
short term incentive 
sti plan annual 
bonus
the performance measures form a group scorecard which 
is closely aligned to our strategy and rewards commercial 
scientific and financial success the measures are 
considered by the remuneration committee and updated 
annually and may include metrics linked to the strategic 
objectives of achieve scientific leadership return to 
growth achieve group financial targets and be a great 
place to work
long term incentive 
lti plans
the variable lti arrangements comprise two plans the 
psp and the azip see below currently lti awards are 
granted with a split between the two plans in the ratio 75 
psp and 25 azip
astrazeneca 
performance share 
plan psp
the psp performance measures are designed to align  
to financial and strategic objectives over a threeyear 
performance period they include
  external financial metrics namely total shareholder 
return tsr performance 
  internal financial metrics namely cumulative free  
cash flow
  return to growth measures which are based on 
quantitative mediumterm sales targets relating to key 
products and territories
  achieve scientific leadership measures which reflect  
our ability to deliver innovation to the market
astrazeneca 
investment plan 
azip
the azip performance measures are designed to align 
senior management’s interests to the group’s longerterm 
financial performance over a fouryear performance period 
with a fouryear holding period they are
  dividend per share performance 
  dividend cover performance
gender split  
of directors
governance
good governance is crucial to ensuring we are well managed and can deliver our strategic priorities
the board
chairman leif johansson  senior independent nonexecutive director john varley
all directors are collectively responsible for the success of astrazeneca in addition the nonexecutive directors are responsible 
for exercising independent and objective judgement and for scrutinising and challenging management
the board is responsible for setting our strategy and policies for oversight of risk and corporate governance and for monitoring 
progress towards meeting our annual plans it is accountable to our shareholders for the proper conduct of the business and our 
longterm success it represents the interests of all stakeholders
the board has delegated some of its powers to four principal committees and the ceo
members of the board and their biographies are shown on pages 28 to 29
further details from page 88
nomination and 
governance committee
audit committee remuneration 
committee
science committee
chairman leif johansson chairman rudy markham chairman john varley chairman nancy rothwell
talented people are critical  
to the delivery of the group’s 
strategy the nomination and 
governance committee’s 
role is to recommend new 
board appointments to  
the board and to consider 
more broadly succession 
planning to senior executive 
management and board 
positions the nomination 
and governance committee 
also advises the board on 
significant developments in 
corporate governance
to deliver the group’s 
strategy we must have sound 
financial and nonfinancial 
controls the audit 
committee is responsible  
for reviewing our financial 
reporting internal controls 
compliance with laws and  
our relationship with our 
external auditor as well as  
risk management
we seek to attract retain 
and develop the highest
calibre talent while paying  
no more than is necessary 
the group’s short and 
longterm incentive plans 
are closely linked to our 
strategic and financial  
goals and the delivery of 
sustainable shareholder 
value the remuneration 
committee is responsible  
for the group’s remuneration 
policy which supports the 
delivery of our strategy
achieving scientific 
leadership is key to our 
strategic success the 
science committee provides 
assurance to the board 
regarding the group’s rd 
activities by reviewing and 
assessing our approaches in 
our chosen therapy areas 
the scientific technology and 
rd capabilities we deploy 
the quality and development 
of our scientists and our 
decision making
further details from page 93 further details from page 92 further details from page 92 further details from page 93
ceo pascal soriot
the senior executive team set comprises
ceo cfo 9 executive vicepresidents general counsel chief compliance officer
the set is the body through which the ceo exercises the authority delegated to him by the board it considers major business 
issues and makes recommendations to the ceo and typically also reviews those matters which are to be submitted to the board 
for its consideration the ceo is responsible for establishing and chairing the set
biographies of the members of the set are shown on pages 30 to 31
 male 9
 female 3
key roles
chairman
leadership operation and 
governance of the board 
ensuring board 
effectiveness
ceo
responsible to the  
board for the management 
development and 
performance of the 
business
senior independent 
nonexecutive director 
acts as a sounding board  
for the chairman and an 
intermediary for other 
directors and shareholders 
when necessary
additional information financial statements corporate governance strategic report
27 astrazeneca annual report and form 20f information 2013 1
7
3
9
2
8
board of directors
as at 31 december 2013
1 leif johansson 62
nonexecutive chairman of the board 
chairman of the nomination and  
governance committee and member  
of the remuneration committee 
elected as a director in april 2012 and became 
nonexecutive chairman of the board in june 
2012 leif johansson is also the chairman of 
global telecommunications company lm 
ericsson a position he has held since april  
2011 from 1997 until 2011 he was chief 
executive of ab volvo one of the world’s leading 
manufacturers of trucks buses construction 
equipment drive systems and aerospace 
components he spent a significant part of his 
early career at ab electrolux latterly as chief 
executive from 1994 to 1997  he was a 
nonexecutive director of bms from 1998 to 
september 2011 serving on the board’s audit 
committee and compensation and management 
development committee he is chairman of  
the european round table of industrialists and 
the international advisory board of the nobel 
foundation he holds board positions at 
svenska cellulosa aktiebolaget sca and 
ecolean ab he holds an msc in engineering 
from chalmers university of technology 
gothenburg and has been a member of the 
royal swedish academy of engineering 
sciences since 1994 he became chairman  
of the academy in 2012 
2 pascal soriot 54
executive director and chief executive 
officer 
appointed as a director and ceo in october 
2012 from 2010 to september 2012 he served 
as chief operating officer of roche ag’s 
pharmaceuticals division prior to that he was 
ceo of genentech a biologics business and 
led its successful merger with roche he joined 
the pharmaceutical industry in 1986 and has 
worked in senior management roles throughout 
the world in a number of major companies 
he brings to astrazeneca a significant breadth  
of experience in both established and emerging 
markets strength of strategic thinking a 
successful track record of managing change  
and putting strategy into operation and the 
ability to lead a diverse organisation having lived 
in australia japan the us and europe he is a 
doctor of veterinary medicine école nationale 
vétérinaire d’alfort maisonsalfort and holds  
an mba from hec paris
3 marc dunoyer 61 
executive director and chief financial 
officer 
appointed as a director and cfo in november 
2013 and served as executive vicepresident 
gpps from june to october 2013 he qualified 
as an accountant and joined astrazeneca 
during 2013 from gsk where he was global 
head of rare diseases and concurrently 
chairman gsk japan his career in 
pharmaceuticals which has included periods 
with roussel uclaf hoechst marion roussel as 
well as gsk has given him extensive experience 
of the industry including finance and accounting 
corporate strategy and planning research and 
development sales and marketing business 
reorganisation and business development he 
has an mba from hec paris and a bachelor of 
laws degree from paris university 
4 john varley 57
senior independent nonexecutive director 
chairman of the remuneration committee 
and member of the nomination and 
governance committee 
appointed as a director in july 2006 john 
varley was formerly group chief executive  
of the barclays group having held a number  
of senior positions with the bank during his 
career including that of group finance director 
he brings additional international executive 
business leadership experience to the board  
he is also a nonexecutive director of 
blackrock inc rio tinto plc and rio tinto 
limited as well as being chairman of business 
action on homelessness and of marie curie 
cancer care 
5 geneviève berger 58
nonexecutive director and member  
of the science committee 
elected as a director in april 2012 geneviève 
berger is chief science officer at unilever plc 
and a member of the unilever leadership 
executive she holds three doctorates – in 
physics human biology and medicine she was 
appointed professor of medicine at université 
pierre et marie curie paris in 2006 from 2003 to 
2008 she was professor and hospital practitioner 
at l’hôpital de la pitiésalpêtrière paris her 
previous positions include director of the biotech 
and agrifood department then head of the 
technology directorate at the french ministry of 
research and technology 19982000 director 
general centre national de la recherche 
scientifique 20002003 and chairman of the 
health advisory board of the eu commission 
20062008 she was a nonexecutive board 
member of unilever from 2007 to 2008 before 
being appointed to her current position and was 
a nonexecutive director of smith  nephew plc 
from 2010 to 2012
6 bruce burlington 65
nonexecutive director and member of the 
audit committee and the science committee 
appointed as a director in august 2010 bruce 
burlington is a pharmaceutical product 
development and regulatory affairs consultant 
and brings extensive experience in those areas  
to the board he is also a nonexecutive board 
member of cangene corporation and the 
international partnership for microbicides  
and a member of the scientific advisory boards  
of the international medica foundation and  
h lundbeck as previously he spent 17 years 
with the fda serving as director of its center  
for devices and radiological health as well as 
holding a number of senior roles in the center for 
drug evaluation and research after leaving the 
fda he served in a series of senior executive 
positions at wyeth now part of pfizer
28 astrazeneca annual report and form 20f information 2013
strategic report  4
10
6
12
5
11
7 graham chipchase 50
nonexecutive director and member  
of the audit committee 
elected as a director in april 2012 graham 
chipchase is the chief executive of global 
consumer packaging company rexam plc 
he was appointed to the position in 2010 after 
previous service at rexam as group director 
plastic packaging 20052009 and group 
finance director 20032005 before joining 
rexam he was finance director of aerospace 
services at global engineering group gkn plc 
from 2001 to 2003 after starting his career with 
coopers  lybrand deloitte he held a number 
of finance roles in the industrial gases company 
the boc group plc now part of the linde 
group 19902001 he is a fellow of the institute 
of chartered accountants in england and wales 
and holds an ma hons in chemistry from oriel 
college oxford
8 jeanphilippe courtois 53
nonexecutive director and member  
of the audit committee 
appointed as a director in february 2008 
jeanphilippe courtois has close to 30 years’ 
experience in the global technology industry 
he is president of microsoft international and 
a board member of planet finance previously 
he was chief executive officer and president of 
microsoft emea and has served as cochairman 
of the world economic forum’s global digital 
divide initiative task force and on the european 
commission information and communication 
technology task force in 2009 he served as 
an eu ambassador for the year of creativity 
and innovation and in 2011 was named one 
of ‘tech’s top 25’ by the wall street 
journal europe 
9 rudy markham 67
nonexecutive director chairman  
of the audit committee member of the 
remuneration committee and the 
nomination and governance committee 
appointed as a director in september 2008 
rudy markham takes a particular interest on 
behalf of the board in she assurance he has 
significant international business and financial 
experience having formerly held a number of 
senior commercial and financial positions 
worldwide with unilever culminating in his 
appointment as its chief financial officer he is 
currently chairman and nonexecutive director 
of moorfields eye hospital nhs foundation trust 
and a nonexecutive member of the boards of 
united parcel services inc standard chartered 
plc and legal  general plc he is also a 
nonexecutive member of the board of the uk 
foreign and commonwealth office a member 
of the supervisory board of csm nv a fellow 
of the chartered institute of management 
accountants and a fellow of the association 
of corporate treasurers he served as a 
nonexecutive director of the uk financial 
reporting council from 2007 to 2012
10 nancy rothwell 58
nonexecutive director chairman  
of the science committee member  
of the remuneration committee and the 
nomination and governance committee 
appointed as a director in april 2006 nancy 
rothwell oversees responsible business on 
behalf of the board as is described more fully  
in the responsible business section from page 
220 she is a distinguished life scientist and 
academic and is the president and vice
chancellor of the university of manchester  
she is also president of the society of biology 
and cochair of the prime minister’s council  
for science and technology previously she has 
served as president of the british neuroscience 
association and on the councils of the medical 
research council the royal society the 
biotechnology and biological sciences research 
council the academy of medical sciences and 
cancer research uk 
11 shriti vadera 51
nonexecutive director and member  
of the audit committee 
appointed as a director in january 2011  
shriti vadera has significant experience of 
emerging markets and knowledge of global 
finance and public policy she is a nonexecutive 
director of bhp billiton plc and bhp billiton 
limited she advises investors governments  
and companies and has recently undertaken  
a range of international assignments such as 
advising the republic of korea as chair of  
the g20 the government of dubai on the 
restructuring of dubai world temasek holdings 
singapore on strategy and a number of banks  
and investors on the eurozone crisis she  
was minister in the uk government from 2007  
to 2009 most latterly in the cabinet office  
and business department working on the 
government’s response to the financial crisis 
from 1999 to 2007  she was on the council of 
economic advisers hm treasury focusing on 
business and international economic issues 
before that she spent 14 years in investment 
banking with s g warburgubs in banking 
project finance and corporate finance 
specialising in emerging markets
12 marcus wallenberg 57 
nonexecutive director and member  
of the science committee 
appointed as a director in april 1999 
marcus wallenberg has international business 
experience across a broad range of industry 
sectors including the pharmaceutical industry 
from his directorship with astra prior to 1999 
he is the chairman of skandinaviska enskilda 
banken ab ab electrolux saab ab lkab and 
foundation asset management ab he is a 
member of the boards of investor ab stora 
enso oyj temasek holdings limited the knut 
and alice wallenberg foundation and eqt 
holdings ab
additional information financial statements corporate governance strategic report
29 astrazeneca annual report and form 20f information 2013 senior 
executive team
as at 31 december 2013
1 pascal soriot
chief executive officer 
see page 28
2 marc dunoyer 
chief financial officer from november 2013 
executive vicepresident gpps from june 
to october 2013
see page 28 
3 katarina ageborg
chief compliance officer 
katarina ageborg was appointed chief 
compliance officer in july 2011 and has overall 
responsibility for the design delivery and 
implementation of astrazeneca’s compliance 
responsibilities since joining astrazeneca in 
1998 she has held a series of senior legal roles 
supporting commercial and regulatory and 
most recently led the global ip function from 
2008 to 2011 before joining astrazeneca she 
established her own law firm in sweden and 
worked as a lawyer practising on both civil and 
criminal cases
4 ruud dobber
executive vicepresident europe 
interim executive vicepresident gpps 
from december 2013
ruud dobber was appointed as executive 
vicepresident europe in january 2013 and 
leads astrazeneca’s commercial operations 
in europe in this capacity ruud is responsible 
for sales marketing and commercial operations 
across astrazeneca’s businesses in the 27 eu 
member states he was also appointed interim 
executive vicepresident gpps in december 
2013 ruud joined astrazeneca in 1997 and 
has held a number of senior commercial 
roles including regional vicepresident of 
astrazeneca’s european middle east and 
african division and regional vicepresident 
for the group’s asia pacific region since 2012 
ruud has been an executive committee 
member of efpia in 2011 he was the chairman 
of the asia division of pharmaceutical research 
and manufacturers of america ruud began his 
career as a scientist researching in the field of 
immunology and ageing he holds a doctorate 
in immunology from the university of leiden in 
the netherlands 
5 caroline hempstead 
interim executive vicepresident human 
resources  corporate affairs from 
september 2013
caroline hempstead joined astrazeneca in 2007 
and was appointed interim executive vice
president human resources  corporate 
affairs in september 2013 in this role she leads 
the global human resources function as well as 
corporate affairs which includes internal and 
external communications government affairs 
community investment and sustainability after 
pursuing a commercial training early in her 
career caroline has held a number of senior 
corporate affairs roles at the london stock 
exchange inchcape plc and royal dutch shell 
plc caroline has a degree in french from the 
university of manchester caroline chairs the 
astrazeneca responsible business council and 
sits on the national advisory board of the uk 
charity career academies uk
6 paul hudson
executive vicepresident north america 
paul hudson was appointed executive 
vicepresident north america in january  
2013 and leads astrazeneca’s commercial 
operations in north america in this capacity  
he is accountable for driving growth and 
maximising the contribution of north america  
to astrazeneca’s global business paul joined 
astrazeneca in 2006 as vicepresident and 
primary care director uk paul’s most recent 
role with astrazeneca was as president of 
astrazeneca’s japanese business he has 
served as a standing board member of the 
japan pharmaceuticals manufacturers 
association and efpia in japan previously 
paul was president of astrazeneca’s business 
in spain before astrazeneca he worked for 
scheringplough where he held senior global 
marketing roles paul received a degree in 
economics from manchester metropolitan 
university and a dipm from the uk’s chartered 
institute of marketing
7 bahija jallal
executive vicepresident medimmune 
dr bahija jallal was appointed executive 
vicepresident medimmune in january 2013 
and is responsible for biologics research 
activities bahija is tasked with advancing  
the biologic pipeline of drugs she joined 
medimmune as vicepresident translational 
sciences in 2006 and has held roles of 
increasing responsibility prior to joining 
astrazeneca bahija worked with chiron 
corporation where she served as vicepresident 
drug assessment and development bahija 
received a master’s degree in biology from the 
université de paris vii and her doctorate in 
physiology from the université pierre et marie 
curie paris she conducted her postdoctoral 
research at the maxplanck institute of 
biochemistry in martinsried germany she is 
a member of the american association of 
cancer research the american association  
of science the pharmacogenomics working 
group and the board of directors of the 
association of women in science 
1
7
3
9
2
8
30 astrazeneca annual report and form 20f information 2013
strategic report 8 mark mallon
executive vicepresident international 
mark mallon was appointed as executive 
vicepresident international in january 2013 
and is responsible for the growth and 
performance of astrazeneca’s commercial 
businesses in regions including asia pacific 
russia latin america the middle east and 
africa since joining astrazeneca in 1994 mark 
has held a number of senior sales and marketing 
roles including regional vicepresident for asia 
pacific president of astrazeneca china and 
head of marketing sales and commercial 
operations for astrazeneca in japan mark 
has a degree in chemical engineering from the 
university of pennsylvania and an mba in 
marketing and finance from the wharton school 
of business 
9 briggs morrison
executive vicepresident gmd
dr briggs morrison was appointed executive 
vicepresident gmd in january 2013 and leads 
our global latestage development organisation 
for both small molecules and biologics he is 
also the company’s chief medical officer 
he joined astrazeneca in 2012 from pfizer 
where he was head of medical excellence 
overseeing development medical affairs safety 
and regulatory affairs for pfizer’s human health 
businesses briggs has a track record of 
successfully developing novel medicines in 
roles at both pfizer and merck he has a biology 
degree from georgetown university and a 
medical doctorate from the university of 
connecticut briggs has also undertaken an 
internship and residency in internal medicine 
at the massachusetts general hospital a 
fellowship in medical oncology at the dana
farber cancer institute and a postdoctoral 
research fellowship in genetics at harvard 
medical school
10 menelas pangalos
executive vicepresident imed 
menelas mene pangalos was appointed 
executive vicepresident imed in january 
2013 and leads astrazeneca’s small molecule 
discovery research and early development 
activities mene joined astrazeneca from pfizer 
where he was senior vicepresident and chief 
scientific officer of neuroscience research 
previously he held senior discovery and 
neuroscience roles at wyeth and gsk he 
completed his undergraduate degree in 
biochemistry at the imperial college of science 
and technology london and earned a doctorate 
in neurochemistry from the university of london 
he is a visiting professor of neuroscience at 
king’s college london in the uk mene sits on 
the medical research council and the innovation 
board for the association of the british 
pharmaceutical industry
11 jeff pott
general counsel
jeff pott was appointed general counsel in 
january 2009 and has overall responsibility for all 
aspects of astrazeneca’s legal and ip function 
he joined astrazeneca in 1995 and has worked 
in various litigation roles where he has had 
responsibility for ip  antitrust and product liability 
litigation before joining astrazeneca he spent 
five years at the us legal firm drinker biddle 
and reath llp  where he specialised in 
pharmaceutical product liability litigation and 
antitrust advice and litigation he received his 
bachelor’s degree in political science from 
wheaton college and his juris doctor degree 
from villanova university school of law
12 david smith
executive vicepresident operations  
information services 
david smith joined astrazeneca in 2006 as 
executive vicepresident operations he leads 
astrazeneca’s global manufacturing and supply 
organisation is responsible for the safety health 
and environment regulatory compliance 
procurement and engineering functions and 
also has overall responsibility for information 
services david spent his early career in 
pharmaceuticals initially with the wellcome 
foundation in the uk he subsequently spent 
nine years in the consumer goods sector 
working for estée lauder inc and timberland 
llc in senior supply chain roles in 2003 he 
returned to the pharmaceutical sector joining 
novartis in switzerland
4
10
6
12
5
11
additional information financial statements corporate governance strategic report
31 astrazeneca annual report and form 20f information 2013 more people  
surviving cancer
immunemediated therapies
lifechanging medicines 
every year 14 million people are diagnosed with  
cancer and more than eight million die from the disease 
cancer cases are projected to continue rising to more 
than 22 million estimated annually by 2035
since the 1970s astrazeneca has developed families of medicines such as hormonebased cancer  
treatments including nolvadex tamoxifen zoladex and faslodex as well as iressa a forerunner in the field 
of targeted therapies among other benefits these treatments have played a part in increasing the fiveyear 
survival rate for women with breast cancer from less than 70 50 years ago to around 90 today
astrazeneca annual report and form 20f information 2013 32
strategic report  pioneering science lifechanging medicines pioneering science
much of our scientific 
effort is focused on 
harnessing the  
power of patients’  
own immune system 
capabilities to  
fight cancer 
real lives
there remains a large unmet medical  
need in the treatment of lung cancer  
one female patient a nonsmoker 
was diagnosed with lung cancer and 
prescribed iressa when her disease 
progressed she enrolled onto the trial for 
azd9291 and recorded a partial response 
to the treatment her message to us was 
simple “keep doing what you are doing 
and be proud of what you do for me and 
thousands of other people astrazeneca’s 
research is really lifechanging”
we believe this approach – immune
mediated cancer therapies or imtcs –  
will become a cornerstone of cancer 
therapy in the future at medimmune 
our biologics arm scientists are working 
to develop imtcs to counter cancer’s 
immune system evading methods by 
restoring the body’s signals that activate 
and inhibiting the signals that restrain the 
immune system’s ability to fight cancer
it is likely that the best strategy for any 
one patient will involve a combination of 
imtcs possibly alongside other courses 
of treatment these parallel treatments 
include small molecule medicines 
being developed by our small molecule 
imed units
to support our imtc research  
capabilities we acquired amplimmune  
in 2013 amplimmune a biologics 
company focused on developing novel 
therapeutics in cancer immunology will 
bolster our oncology pipeline with multiple 
earlystage assets for our imtc portfolio
see the research and development section from page 36  
and the oncology section in the therapy area review from  
page 56 for more information
82 million
 
cancer is a leading cause of  
death worldwide and accounted  
for 82 million deaths in 2012 
more people  
surviving cancer
immunemediated therapies
 who data
additional information financial statements corporate governance strategic report
33 astrazeneca annual report and form 20f information 2013 lifecycle of a medicine
astrazeneca is one of only a handful of pureplay biopharmaceutical 
companies to span the entire value chain of a medicine from research 
early and latestage development to manufacturing and distribution 
and the global commercialisation of primary care specialty careled 
and specialty care medicines that transform lives
1
2 3 4 5 6
7
find potential 
medicine
identify unmet medical need  
that represents a potential 
market opportunity explore  
and conduct pioneering science 
on the biology of the disease  
to identify a potential medicine  
to address those needs  
and undertake laboratory 
research to find a medicine  
that should be potent selective 
and absorbed into and well 
tolerated by the body
begin the process of seeking 
patent protection for the  
potential medicine
collaborate with academia 
public research laboratories 
biotech companies and 
pharmaceutical peers to  
access the best external  
science and medical opinion
preclinical studies
undertake studies in the 
laboratory and in animals to 
understand if the potential 
medicine should be safe to 
introduce into humans and  
in what quantities
determine likely efficacy side 
effect profile and maximum 
tolerable dose estimate for 
humans
regulatory authorities are 
informed of the proposed trials 
that are to be conducted within 
the framework of regulations
phase i 
studies
studies designed to 
understand how the 
potential medicine is 
absorbed in the body 
distributed around it 
and excreted also 
identify side effects and 
determine what doses 
can be tolerated these 
studies typically take 
place in small groups  
of healthy human 
volunteers or in certain 
cases patients
as early as phase i 
begin to design a 
manufacturing  
route to ensure the 
manufacturing process 
is robust and cost 
efficient 
phase ii 
studies
studies designed to 
evaluate magnitude of 
effect and tolerability of 
the medicine typically 
using small or medium
sized groups of patients 
and to determine the 
optimal doses establish 
proof of concept
based on the phase ii 
results design a phase iii 
programme to deliver 
data required for 
regulatory approval  
and pricing andor 
reimbursement 
throughout the world
at an early stage 
incorporate payer 
considerations to help 
ensure the economic and 
therapeutic value of a 
medicine is understood
phase iii 
studies
studies typically in  
large groups of patients 
designed to confirm  
the efficacy and gather 
additional information  
on safety of the medicine 
and evaluate the overall 
benefitrisk profile in the 
specific disease and 
patient segments in 
which the medicine  
will be used
create appropriate 
branding for the new 
medicine in preparation 
for launch
regulatory 
submission  
and pricing
seek approval from regulatory 
authorities to manufacture 
market and sell the medicine
submit package of clinical data 
which demonstrates the safety 
profile and efficacy of a medicine 
to regulatory authorities
regulatory authorities decide 
whether to grant marketing 
authorisation based on the 
medicine’s safety profile 
effectiveness and quality
if there are gaps in 
understanding about the 
medicine at the time of marketing 
authorisation regulatory 
authorities may request further 
data collection increasingly in 
realworld clinical settings
launch new 
medicine
raise awareness of patient 
benefit and appropriate use 
market and sell medicine
clinicians begin to prescribe 
medicine and patients begin  
to benefit 
continuously monitor record  
and analyse reported side 
effects review need to update 
the side effect warnings to 
ensure that patients’ wellbeing  
is maintained
assess realworld effectiveness 
and opportunities to support 
patients and prescribers to 
achieve maximum benefit from 
the medicine
postlaunch research 
and development
studies to further understand the 
benefitrisk profile of the medicine  
in larger andor additional patient 
populations
lifecycle management activities  
to broaden understanding of a 
medicine’s full potential and work  
to consider additional diseases or 
aspects of disease which might be 
treated by the medicine or better 
ways of administering the medicine 
submit data packages with requests 
for line extensions to regulatory 
authorities for review and approval
patent expiry 
and generic 
entry
typically when patents 
protecting the medicine 
expire generic versions  
of the medicine enter  
the market
we focus on distinctive science in three 
core therapy areas cardiovascular and 
metabolic disease cvmd oncology 
and respiratory inflammation and 
autoimmunity ria
we believe that few other pharmaceutical 
companies if any can match the 
combination of capabilities that we  
have in small molecules biologics 
immunotherapies and protein engineering
we have created two autonomous biotech 
units medimmune and imed to drive 
science and innovation in research and 
early clinical development
research and 
development 
phases
1015 years
34 astrazeneca annual report and form 20f information 2013
strategic report  business review more information about our activities across  
the lifecycle of a medicine is contained in  
this business review
  research and development 
  sales and marketing 
  manufacturing and supply  
page 36
page 40
page 43
note this is a high level overview of a medicine’s lifecycle and 
is illustrative only it is neither intended to nor does it represent 
the lifecycle of any particular medicine or of every medicine 
discovered andor developed by astrazeneca or the probability 
of success or approval of any astrazeneca medicine
a single latestage development 
organisation – gmd – is responsible  
for all small and large molecule projects 
delivered by the two early clinical 
development organisations
we adopt a strategy of investing in  
the best science whether it originates 
internally or externally products are  
added to our pipeline at any stage  
of development through a mixture of 
collaboration inlicensing and acquisition
we are a truly global company with 
commercial activities in more than 
100 countries
launch phase 
510 years
20 years
1
2 3 4 5 6
7
find potential 
medicine
identify unmet medical need  
that represents a potential 
market opportunity explore  
and conduct pioneering science 
on the biology of the disease  
to identify a potential medicine  
to address those needs  
and undertake laboratory 
research to find a medicine  
that should be potent selective 
and absorbed into and well 
tolerated by the body
begin the process of seeking 
patent protection for the  
potential medicine
collaborate with academia 
public research laboratories 
biotech companies and 
pharmaceutical peers to  
access the best external  
science and medical opinion
preclinical studies
undertake studies in the 
laboratory and in animals to 
understand if the potential 
medicine should be safe to 
introduce into humans and  
in what quantities
determine likely efficacy side 
effect profile and maximum 
tolerable dose estimate for 
humans
regulatory authorities are 
informed of the proposed trials 
that are to be conducted within 
the framework of regulations
phase i 
studies
studies designed to 
understand how the 
potential medicine is 
absorbed in the body 
distributed around it 
and excreted also 
identify side effects and 
determine what doses 
can be tolerated these 
studies typically take 
place in small groups  
of healthy human 
volunteers or in certain 
cases patients
as early as phase i 
begin to design a 
manufacturing  
route to ensure the 
manufacturing process 
is robust and cost 
efficient 
phase ii 
studies
studies designed to 
evaluate magnitude of 
effect and tolerability of 
the medicine typically 
using small or medium
sized groups of patients 
and to determine the 
optimal doses establish 
proof of concept
based on the phase ii 
results design a phase iii 
programme to deliver 
data required for 
regulatory approval  
and pricing andor 
reimbursement 
throughout the world
at an early stage 
incorporate payer 
considerations to help 
ensure the economic and 
therapeutic value of a 
medicine is understood
phase iii 
studies
studies typically in  
large groups of patients 
designed to confirm  
the efficacy and gather 
additional information  
on safety of the medicine 
and evaluate the overall 
benefitrisk profile in the 
specific disease and 
patient segments in 
which the medicine  
will be used
create appropriate 
branding for the new 
medicine in preparation 
for launch
regulatory 
submission  
and pricing
seek approval from regulatory 
authorities to manufacture 
market and sell the medicine
submit package of clinical data 
which demonstrates the safety 
profile and efficacy of a medicine 
to regulatory authorities
regulatory authorities decide 
whether to grant marketing 
authorisation based on the 
medicine’s safety profile 
effectiveness and quality
if there are gaps in 
understanding about the 
medicine at the time of marketing 
authorisation regulatory 
authorities may request further 
data collection increasingly in 
realworld clinical settings
launch new 
medicine
raise awareness of patient 
benefit and appropriate use 
market and sell medicine
clinicians begin to prescribe 
medicine and patients begin  
to benefit 
continuously monitor record  
and analyse reported side 
effects review need to update 
the side effect warnings to 
ensure that patients’ wellbeing  
is maintained
assess realworld effectiveness 
and opportunities to support 
patients and prescribers to 
achieve maximum benefit from 
the medicine
postlaunch research 
and development
studies to further understand the 
benefitrisk profile of the medicine  
in larger andor additional patient 
populations
lifecycle management activities  
to broaden understanding of a 
medicine’s full potential and work  
to consider additional diseases or 
aspects of disease which might be 
treated by the medicine or better 
ways of administering the medicine 
submit data packages with requests 
for line extensions to regulatory 
authorities for review and approval
patent expiry 
and generic 
entry
typically when patents 
protecting the medicine 
expire generic versions  
of the medicine enter  
the market
additional information financial statements corporate governance strategic report
35 astrazeneca annual report and form 20f information 2013 research and 
development
we are transforming our organisation  
to drive science and innovation changing  
our culture and improving productivity
achieve scientific leadership 
as outlined in the our strategic priorities 
section from page 16 achieving scientific 
leadership is a critical component of our 
path to success 
during 2013 we
  focused on distinctive science in three 
core therapy areas 
  prioritised our portfolio and accelerated 
key programmes
  achieved our 2016 target volume for our 
phase iii pipeline three years ahead of 
schedule and improved the quality of  
our phase ii pipeline
achieving scientific leadership also requires 
us to change our culture and transform  
the way we work we need to access the 
best science whether inside or outside 
astrazeneca we have therefore developed 
a biotechstyle operating model with two 
autonomous research and early clinical 
development science units and a latestage 
development organisation we are 
collaborating across early and latestage 
development to tap into the best scientific 
research and develop medicines that 
transform lives our focus on increasing 
productivity and improving the quality of our 
pipeline is starting to benefit from our past 
investment in key capabilities such as 
payer partnering phc predictive science 
and clinical trial design 
transforming the way we work includes 
plans to colocate teams across small 
molecules and biologics at our strategic 
rd hubs – in gaithersburg maryland us 
cambridge uk and mölndal sweden to 
ensure seamless delivery of the portfolio 
from early to late development and into 
lifecycle management for more information 
see the strategic rd centres section  
on page 5 we have also reshaped our 
organisation reducing management  
layers and process complexity to improve 
decision making and empower employees 
this means our rd organisation is  
leaner and more efficient as outlined  
in the managing change section on  
page 69 we continue to support 
employees through these changes
research and early clinical 
development 
our two biotech units drive innovation in 
discovery research and early development 
innovative medicines and early development 
imed is our small molecule organisation 
while medimmune focuses on biologics 
both units comprise specialist disease 
arealed innovative medicines sections  
and are accountable for delivery of pipeline 
projects up to proof of concept stage 
when they move to our global medicines 
development gmd unit for latestage 
development as described opposite 
our way of working gives us a distinctive 
innovation platform comprising small 
molecules biologics therapeutic 
combinations and phc approaches 
scientific collaborations alliances and 
business development play a critical part 
in our innovation strategy 
working collaboratively
to enable us to build the strongest portfolio 
possible we are agnostic as to the source 
of scientific innovation with a significant 
proportion of our pipeline derived from 
external sources we have significantly 
enhanced our innovation capability by 
establishing numerous alliances and 
licensing opportunities and completed 
strategic bolton acquisitions
in oncology we forged new partnerships 
across our small molecule and biologics 
pipeline in september 2013 we signed a 
worldwide licensing agreement with merck 
for mk1775 their oral small molecule 
inhibitor of wee1 kinase mk1775 is 
currently being evaluated in phase iib 
clinical studies in combination with 
standardofcare therapies for treating 
patients with certain types of ovarian 
cancer in october 2013 we completed 
the acquisition of amplimmune a biologics 
company that develops novel therapeutics 
in cancer immunology and spirogen a 
biotechnology company specialising in 
antibodydrug conjugate technology for 
use in oncology 
choosing the right therapeutic technology 
is vital especially since many targets have 
proved intractable to traditional small 
molecule and protein approaches in 
march 2013 we entered into an exclusive 
agreement with moderna therapeutics 
to discover develop and commercialise 
pioneering messenger rna therapeutics 
for the treatment of serious cardiovascular 
metabolic and renal diseases and cancer 
messenger rna therapeutics are an 
entirely new treatment approach that 
enables the body to produce therapeutic 
protein in vivo opening up new treatment 
options for a wide range of diseases that 
cannot be addressed using existing 
technologies see the case study on 
page 46 for more information
“ our strategic approach 
means we are well 
positioned to take advantage 
of our integrated expertise in 
small molecules biologics 
immunotherapies and 
protein engineering” 
  b a hi j a j al l al 
evp  medimmune 
36 astrazeneca annual report and form 20f information 2013
strategic report  business review in 2013 we also progressed collaborations 
with several key biotech and research 
institutions to develop and access 
innovative technology for example we 
extended our collaboration with xchem 
inc and plan to use their highdiversity 
library and highly efficient screening 
platform to improve the rate and quality of 
small molecule discovery a collaboration 
with the wyss institute for biologically 
inspired engineering at harvard university 
will leverage the institute’s technologies  
to better predict the safety of drugs  
in humans 
innovative approaches
in oncology our distinctive innovation 
platform means we can combine small 
molecules with biologics known as 
immunemediated cancer therapies 
imtcs a promising therapeutic approach 
which harnesses the patient’s own immune 
system to fight cancer we believe that by 
developing novel combinations of imtcs 
with each other and with small molecules 
we can deliver significant improvements  
in overall survival see the case study on  
page 32 for more information
in january 2014 astrazeneca announced  
a research collaboration with immunocore 
under which both companies will research 
and develop immunocore’s immune 
mobilising monoclonal tcell receptor 
against cancer immtac technology
a growing appreciation and a deeper 
understanding of disease diversity is 
uncovering new therapeutic targets  
in oncology we work with major 
organisations such as the national cancer 
institute in the us cancer research uk 
and the nn petrov institute in russia to 
better understand disease and resistance 
mechanisms in 2013 we established the 
integrated cardio metabolic centre with  
the karolinska institutet in sweden to 
identify and validate novel targets within 
cardiometabolic diseases we also  
opened the previously announced 
manchester collaborative centre for 
inflammation research a unique 
precompetitive partnership between  
the university of manchester gsk and 
astrazeneca designed to establish a 
worldleading translational centre for 
inflammatory diseases
our personalised healthcare strategy
a greater understanding of disease 
mechanisms leads to more sophisticated 
diagnostic protocols for tailoring both novel 
and existing treatments to the needs of 
individual patients by the end of 2013 this 
phc strategy was applied to 64 of our 
pipeline phc aims to match medicines 
only to those patients who will benefit from 
them advances in science mean we can 
increasingly design and use tests to tell us 
how an individual patient is likely to respond 
to a particular medicine before prescribing 
it for them in 2013 we partnered with a 
number of diagnostic companies to 
codevelop diagnostics at the point of entry 
into clinical trials roche molecular systems 
for selumetinib azd5363 and azd9291 
myriad genetics for olaparib and abbott 
for volitinib we also entered into a master 
collaboration agreement with qiagen that 
includes continued support for iressa
one promising area for phc is asthma  
a heterogeneous group of conditions with 
closely related clinical features but diverse 
underlying causes and molecular 
phenotypes by using phc strategies early 
in the drug development process we can 
target these distinct asthma phenotypes  
to optimise treatments one example of this 
is benralizumab where we are targeting 
patients in our phase iii programme with  
a distinct asthma phenotype benralizumab 
is the first in a series of novel phcdriven 
biologic therapies in our portfolio that may 
represent a critical advance in the 
development of personalised asthma 
management 
“ we are creating a more 
porous research environment 
that will help us achieve 
scientific leadership by 
fostering collaboration 
between scientists both 
within and outside 
astrazeneca” 
  m en e l a s p a n galo s 
evp imed 
open innovation
the creation of a porous research 
environment where scientists share ideas 
more freely collaborate on projects and 
drive scientific innovation is key to our drive 
to achieve scientific leadership in october 
2013 building on our open innovation 
agreements with the medical research 
council in the uk and the us national 
institutes of health’s new national center 
for advancing translational sciences we 
announced an agreement with the national 
research program for biopharmaceuticals 
of taiwan to explore new therapeutic uses 
for 20 of our small molecule and biologic 
compounds we also progressed our 
previously announced open innovation 
partnership with the science for life 
laboratory based in sweden supporting 
10 joint collaborative research projects 
covering research in metabolic 
cardiovascular inflammatory cancer and 
regenerative medicine and hosted by the 
karolinska institutet and uppsala university 
latestage development 
our latestage development organisation 
gmd takes projects from the point when it 
is first decided to progress them through to 
phase iii development gmd designs and 
delivers drug programmes to support the 
approval launch and reimbursement of our 
latestage projects it also pursues lifecycle 
management opportunities for products on 
the market finding new indications for 
medicines so that more patients can 
benefit it is responsible for both the small 
molecule and biologics projects delivered 
by our two research and early clinical 
development units and works in 
partnership with other companies and 
organisations to codevelop new medicines 
which are inlicensed or part of a 
partnership agreement
prioritised pipeline
during 2013 we prioritised and in several 
cases accelerated latestage development 
of projects in those disease areas where  
we believe there is the greatest potential  
to meet patient need at the end of 2013 
there were 11 nme projects in latestage 
development 2012 six either in phase iii 
or under regulatory review including two 
from the acquisition of pearl therapeutics 
and omthera further information about  
our development pipeline is given in  
the development pipeline section from 
page 194
we have increased development 
collaborations with pharmaceutical partners 
and work closely with others including 
academic research organisations aros 
clinical research organisations cros and 
technology providers to deliver clinical trial 
programmes in the most efficient way while 
identifying rigorous and innovative means  
to expand understanding of the benefits 
and risks of our products throughout their 
lifecycle as described below
quality and efficiency
we continue to reshape our organisation 
and implement new operating models and 
processes to improve our efficiency and 
quality in delivering latestage clinical trials 
we are upgrading our it platforms and 
systems by for example introducing a  
new regulatory information management 
system using tools to provide realtime 
information about the progress of patients 
enrolled in studies and common platforms 
for sharing study information globally  
we are standardising processes for 
example by adopting common data 
standards for our clinical trials and through 
simpler designs for clinical trial protocols  
we are reducing the number of amendments 
we have adopted simpler ways of working 
for example by reducing management 
layers and creating broader roles we are 
cutting complexity and making 
accountabilities clearer
additional information financial statements corporate governance strategic report
37 astrazeneca annual report and form 20f information 2013 “  our passion is to ensure the 
swift and ethical development 
approval reimbursement 
and launch of medicines that 
transform people’s lives”
  b r ig g s mor r is on 
evp gmd
patients in global astrazeneca studies  
by geographical region in 2013 
we have grown our payer and realworld 
evidence capabilities and are providing the 
data analysis and insights to demonstrate 
the value of our medicines to patients and 
show how they help to reduce healthcare 
costs these studies use observational 
data such as electronic medical records 
and patient surveys to illustrate the impact 
of a medicine in the realworld setting 
for example they can show how a 
medicine can improve outcomes for 
patients compared to other treatment 
options or reduce demand on hospital 
stays or specialist services
delivery through collaboration
we want to make a difference in how we 
develop drugs not just for ourselves but 
to benefit the industry we do this through 
collaboration and partnership
in 2013 we were active partners in the 
transcelerate programme a collaboration 
of leading biopharmaceutical companies 
that have joined forces to solve common 
rd challenges reduce time and cost 
and improve quality the year also saw 
the introduction of a new pharmaceutical 
network to rapidly source highquality 
comparator drugs for clinical trials to speed 
up drug development reduce drug waste 
and costs and to continue to ensure the 
safety of patients in trials and meet all 
regulatory requirements in addition there 
have been initiatives to introduce common 
crossindustry processes associated with 
clinical trial site qualification and training
we continued to work with the european 
innovative medicines initiative which 
launched two new projects in february 
2013 under the ‘new drugs 4 bad bugs’ 
programme this advances research into 
a potential new treatment for gram
negative bacteria one of the toughest 
types of drugresistant bacteria to treat 
and tackles the economic hurdles of 
bringing new antibiotics to market
bioethics
†
we want to be recognised for the high 
quality of our science and the impact 
we make on serious diseases and to be 
trusted for the way we work our standards 
of bioethics are global and apply to all 
astrazeneca research activity in all 
locations whether conducted by us  
or on our behalf by third parties 
patient safety 
the safety of the patients who take our 
medicines is of fundamental importance 
to us our objective is to enhance 
pharmacovigilance awareness – including 
the use of collaborative programmes to 
share and use our knowledge and best 
practice in order to improve reporting and 
patient safety in developing countries
all drugs have potential side effects and 
we aim to minimise the risks and maximise 
the benefits of each of our medicines 
we continually monitor the use of all our 
medicines to ensure that we become aware 
of any side effects not identified during the 
development process this is known as 
pharmacovigilance and is core to our 
responsibility to patients we have 
comprehensive and rigorous systems in 
place for detecting and rapidly evaluating 
such effects including mechanisms for 
highlighting those that require immediate 
investment in capabilities
we continue to invest in core development 
capabilities to exploit science drive 
performance bring quality to our decision 
making and add value this includes 
capabilities such as therapy area and 
disease area expertise statistical 
modelling translational patient safety  
payer and realworld evidence and  
global medical affairs
we have also established leading  
capability and experience in delivering  
large outcomes trials which are extensive 
multicountry multisite studies involving 
many thousands of patients such trials 
often involve us collaborating with aros 
and cros to find the right patients in  
a timely way in 2013 we delivered the 
savor study to provide information on 
cardiovascular cv safety for onglyza a 
treatment for type 2 diabetes this large 
cv outcomes trial was completed and 
delivered two years ahead of schedule
we have strengthened our collaborations 
with aros with for example ongoing 
partnerships with the timi study group 
on the brilinta pegasus study and the 
duke clinical research institute and cpc 
clinical research an academic research 
organisation affiliate of the university of 
colorado on the brilinta euclid study
we have invested in ‘intelligent 
pharmaceuticals’ which explore how 
we can use science and technology such 
as mobile phones and other monitoring 
devices to provide services beyond a 
medicine for example to provide patients 
with targeted information about their 
treatment and reminders about their 
medication and physicians and other 
carers with alerts to prevent problems 
arising and to avoid the need for hospital 
or doctor visits pilot studies are under 
way to test new technology approaches
19 11
small molecule biologics
europe
25 39
uscanada
11 4
asia paciﬁc
27 28
centraleastern europe
2 3
japan
2
1
south africa
12 14
latin america
other
2
38 astrazeneca annual report and form 20f information 2013
strategic report  business review  research and development attention we also work to ensure that 
accurate wellinformed and uptodate 
information concerning the safety profile of 
our drugs is provided to regulators doctors 
other healthcare professionals and where 
appropriate patients 
the pharmacovigilance awareness 
programme that was developed in 2012 
has now been made available to marketing 
companies there are also initiatives under 
way in a number of countries where we are 
working closely with local health authorities 
to raise pharmacovigilance awareness 
we have an experienced inhouse team 
of clinical patient safety professionals 
dedicated to ensuring that we meet our 
commitment to patient safety at a global 
level every medicine in development 
and on the market is allocated a global 
safety physician and a team of patient 
safety scientists in each of our markets 
we have dedicated safety managers 
with responsibility for patient safety at 
a local level
our chief medical officer has overall 
accountability for the benefitrisk profiles 
of our products in development and on 
the market he provides medical oversight 
and ensures appropriate risk assessment 
processes exist to enable informed safety 
decisions to be made rapidly
clinical trials 
we conduct clinical trials at multiple sites 
in several different countriesregions as 
shown in the chart above a broad 
geographic span helps us ensure that 
those taking part in our studies reflect the 
diversity of patients around the world for 
whom the new medicine is intended this 
approach also helps identify the types of 
people for whom the treatment may be 
most beneficial 
our global governance process for 
determining where we locate clinical trials 
provides the framework for ensuring a 
consistent approach worldwide we take 
several factors into account including the 
availability of experienced and independent 
ethics committees and a robust regulatory 
regime as well as sufficient numbers of 
trained healthcare professionals and 
patients willing to participate
before a trial begins we work to make 
sure that those taking part understand the 
nature and purpose of the research and 
that the proper procedure for gaining 
informed consent is followed including 
managing any special circumstances such 
as different levels of literacy protecting 
participants throughout the trial process 
is a priority and we have strict procedures 
to ensure they are not exposed to any 
unnecessary risks 
all our clinical studies are conceptually 
designed and finally interpreted inhouse 
but a percentage are run for us by contract 
research organisations in 2013 around 
29 of patients in our small molecule 
studies and around 64 of those in our 
biologics studies were monitored by 
such organisations on our behalf we 
contractually require these partners to 
work to our global standards and conduct 
riskbased audits to monitor compliance
animal research 
we continue to promote and embed 
scientific and technical best practice in 
animal research
this includes our commitment to minimise 
the use of animals in our research without 
compromising the quality of the research 
data wherever possible we use 
nonanimal methods such as computer 
modelling that eliminate or reduce the need 
to use animals early in drug development 
we also work to refine our existing 
methods this replacement reduction 
and refinement of animal studies is known 
as ‘the 3rs’ to support our drive for 
continuous improvement we work within 
astrazeneca and with the wider scientific 
community to share good practice and 
3rs achievements
the number of animals we use will  
continue to vary because use depends  
on a number of factors including the 
amount of preclinical research we are 
doing the complexity of the diseases under 
investigation and regulatory requirements 
we believe that without our active 
commitment to the 3rs our animal use 
would be much greater in 2013 we used 
260930 animals inhouse 2012 304751 
in addition 19676 animals were used by 
external contract research organisations 
on our behalf 2012 14284 
the welfare of the animals we use is a top 
priority and our bioethics policy applies 
worldwide government authorities inspect 
our internal animal research facilities 
external organisations that conduct animal 
studies on our behalf are required to 
comply with our global standards and 
we undertake activities to ensure our 
expectations are being met during 2013 
we continued to implement our new good 
statistical practice global standard across 
our internal animal research and some of 
our external partners
†  further information on astrazeneca’s approach to  
responsible business can be found in the responsible 
business section from page 220 and on our website  
wwwastrazenecacomresponsibility
clinical trial transparency 
astrazeneca has a longstanding commitment to making information about  
our clinical research publicly available to enhance the scientific understanding  
of how our medicines work we have a commitment to be transparent to benefit  
the medical interest of patients and investigational research participants and the 
disclosure requirements set out in our bioethics policy exceed the current legal 
requirements by 31 december 2013 we had 2241 registered investigational clinical 
studies and in line with our policy or legal requirements had posted the results  
andor clinical study reports and synopses relating to more than half of these  
on a range of public websites including our own dedicated clinical trials website 
wwwastrazenecaclinicaltrialscom
since february 2013 we have voluntarily disclosed the research protocol for  
our clinical trials on wwwastrazenecaclinicaltrialscom once a manuscript  
relating to results of the relevant trial on an investigational or approved product is 
published in a peerreviewed medical journal the posted protocol includes key 
sections necessary for evaluating the study but proprietary information in the 
protocol is edited before posting this policy also applies to observational studies 
published in peerreviewed journals relevant to the efficacy or safety profile of an 
astrazeneca product
calls for ‘open access’ to clinical data raise complex practical legal and ethical 
issues around full disclosure of patient information decision makers as well as 
academia and industry have a duty to consider all the implications that could  
arise from such proposals these include ensuring scientific rigour safeguarding 
patient privacy and protecting innovation and medical progress we are in active 
discussions with stakeholders including regulators legislators industry and 
academia about proposals to routinely publish full clinical trial and patient data  
in order to identify globally recognised practicable solutions that deliver real  
benefits to medical science and to our patients
additional information financial statements corporate governance strategic report
39 astrazeneca annual report and form 20f information 2013 sales and marketing
we have a strong global commercial 
capability and are building on this so that 
we can better meet the needs of patients
organisation and approach 
if we are to change the lives of people 
around the world we need to ensure the 
right medicines are available and that 
patients have access to them to that end 
our sales and marketing teams which 
comprised around 29600 employees at  
the end of 2013 are active in more than 
100 countries in most countries our  
sales are made through whollyowned  
local marketing companies elsewhere  
we sell through distributors or local 
representative offices 
our products are marketed largely to 
primary care and specialist doctors we 
aim to meet their needs by having highly 
accountable local leaders who understand 
their customers and focus on business 
growth our activities are grouped into 
three commercial regions – north 
america europe and international – as well 
as japan our second largest market in 
addition our gpps organisation develops 
global product strategies and drives 
commercial excellence ensuring a strong 
customer focus and commercial direction  
in managing our pipeline and marketed 
products all our efforts are underpinned  
by a commitment to conducting sales  
and marketing activity in accordance with 
our values and to driving commercial 
success responsibly
increases in patient coinsurance or 
copayments are the primary drivers of 
increased generics use in 2013 86 of 
prescriptions dispensed in the us were 
generic while widespread adoption of a 
broad national pricecontrol scheme in the 
near future is unlikely increased focus on 
pharmaceutical prices and their impact on 
healthcare costs is likely to continue for the 
foreseeable future
for more information on our performance  
in north america see the geographical 
review from page 214
europe 
astrazeneca’s european business 
comprises western and eastern  
european markets which include france 
germany italy the uk spain and the 
nordicbaltic countries the total european 
pharmaceutical market was worth  
205 billion in 2013 we are the ninth 
largest pharmaceutical company with  
a 31 market share of prescription  
sales by value 
in 2013 our sales in europe were  
67 billion down by 9 from 2012  
the major external variables affecting  
sales were the macroeconomic 
environment increased government 
interventions for example price and volume 
interventions and increased trade across 
markets the austerity environment also 
continues in europe and is accelerating  
in some markets we continue to launch 
innovative medicines across europe for 
more information on our performance in 
europe see the geographical review  
from page 214
established rest of world row 
we are the 10
th
 largest pharmaceutical 
company in japan in terms of sales with an 
annual growth rate double that of the overall 
market and above any of the other top 10 
us 
astrazeneca is the third largest 
prescriptionbased pharmaceutical 
company in the us with a 51 market 
share of us pharmaceuticals by  
sales value
sales in the us in 2013 decreased by 9  
to 9691 million 2012 10655 million 
2011 13426 million as loss of exclusivity 
on seroquel ir in march 2012 as well as  
the impact of generic competition was  
only partially offset by performance across 
our growth platforms up 493 million or 
29 including brilinta symbicort and 
diabetes brands
the affordable care act which came  
into force in march 2010 has had and is 
expected to continue to have a significant 
impact on our us sales and the us 
healthcare industry as a whole in 2013 the 
overall reduction in our profit before tax for 
the year due to higher minimum medicaid 
rebates on prescription drugs discounts on 
branded pharmaceutical sales to medicare 
part d beneficiaries and an industrywide 
excise fee was 933 million 2012 858 
million see the geographical review  
from page 214 for more information 
currently there is no direct governmental 
control of prices for commercial 
prescription drug sales in the us however 
some publicly funded programmes such 
as medicaid and tricare department of 
veterans affairs have statutorily mandated 
rebates and discounts that have the effect 
of price controls for these programmes 
additionally pressure on pricing availability 
and use of prescription drugs for both 
commercial and public payers continues  
to increase this is driven by among other 
things an increased focus on generic 
alternatives budgetary policies within 
healthcare systems and providers including 
the use of ‘generics only’ formularies and 
“ we combine a global reach 
with strong local customer 
relationships we are 
committed to working 
ethically in accordance 
with our values” 
  r u u d d o bbe r  
evp europe  interim evp  gpps
40 astrazeneca annual report and form 20f information 2013
strategic report  business review businesses growth is driven by our main 
primary care brands crestor symbicort 
and nexium we share the promotion of 
these three brands with japanese partners 
who also provide distribution for nexium 
and symbicort we remain one of japan’s 
largest oncology businesses and to 
maintain this important franchise recently 
entered into an agreement to copromote 
janssen’s abiraterone for castration
resistant prostate cancer 
in canada provincial and territory payers 
who represent up to 55 of the market 
have developed a structure for pan
canadian product listings which could be 
the primary or only access method for new 
products into the public healthcare system 
private sector payers representing the 
remaining 45 are experimenting with 
tiered access programmes for large public 
and private employer groups access to 
reimbursement for new medicines is 
expected to remain reasonable but pricing 
pressure will continue to increase
astrazeneca’s sales in australia and new 
zealand declined by 18 in 2013 primarily 
due to the entry of generic rosuvastatin 
crestor and generic candesartan 
atacand into the australian market for 
more information on our performance in 
established row see the geographical 
review from page 214
emerging markets 
emerging markets as defined in the 
glossary on page 232 comprise a range  
of countries with the unifying characteristic 
of a dynamic growing economy as outlined 
in the our marketplace section on page 13 
demand drivers and strong economic 
fundamentals mean that these countries 
represent a major growth opportunity for 
the biopharmaceutical industry
emerging markets are however not 
immune to the impact of the prolonged 
economic downturn market volatility is 
higher than in established markets with 
venezuela for example currently beset  
by political and economic challenges 
regulatory and government interventions 
also typically present challenges in a 
number of markets at any one time
astrazeneca was the eighth largest 
multinational pharmaceutical company 
across the emerging markets in 2013 with 
revenue of 54 billion within emerging 
markets there are several particularly  
good growth opportunities within china 
russia africa parts of asia india malaysia 
indonesia and vietnam and latin america 
argentina and chile
to expand our presence in emerging 
markets we have established an 
international region whose 16100 
employees almost all of whom are  
located within their respective markets  
are focused on meeting customers’ needs 
the region’s platforms for growth include 
our new medicines notably brilinta as  
well as those for diabetes and our 
established portfolio of medicines for 
cancer respiratory cardiovascular and 
gastrointestinal diseases to provide 
information to physicians on this broad 
portfolio we are selectively investing  
in sales capabilities where we see 
opportunities from unmet patient need  
and expanding our reach through 
multichannel marketing 
we are also pursuing innovative 
collaboration opportunities this includes 
partnering with other biopharmaceutical 
companies to access products that 
complement our own portfolio for 
example the team in china works as part 
of our global collaboration with fibrogen  
to develop and commercialise roxadustat 
fg4592 a firstinclass oral compound  
in development for treating anaemia for 
more information on our performance in 
emerging markets see the geographical 
review from page 214
“ our customers and their 
needs are changing we are 
changing too – ensuring we 
reach and engage with our 
customers in ways that work 
best for them” 
  p a u l h uds o n  
evp  north america 
driving commercial success 
our global commercial excellence  
team delivers innovative commercial 
capabilities for the benefit of all our 
customers via a range of specialist teams 
one leverages data and analytics to identify 
opportunities to improve healthcare while  
a second builds on the success of our 
service inside sales and nurse educator 
teams to ensure we engage customers in 
innovative ways that work for them a digital 
team enhances the content and services 
we deliver online while a commercial 
learning academy seeks to deliver 
excellence across the range of our global 
commercial capabilities our commercial 
operations unit strives to deliver these 
capabilities across the organisation
in 2013 one area of focus was medical 
affairs where we engaged key opinion 
leaders in our clinical programmes and  
took a lead in evidence generation with 
greater numbers of patients involved in  
our interventional realworld evidence  
and investigatorsponsored studies 
pricing our medicines 
our challenge is to deliver innovative 
medicines that improve health for patients 
bring benefits to society and provide an 
appropriate return on our investment  
our global pricing policy provides the 
framework to ensure appropriate patient 
access while optimising the profitability of 
all our products in a sustainable way when 
setting the price of a medicine we take into 
consideration its full value to patients to 
those who pay for healthcare and to society 
in general we also pursue a flexible 
approach to the pricing of our medicines 
for example we support the concept  
of differential pricing provided that 
appropriate safeguards ensure lowerpriced 
products are not diverted from patients 
who need them to be sold and used in 
more affluent markets 
delivering value for payers 
our medicines play an important role in 
treating unmet medical need health is a 
fundamental value for patients and society 
and improving health brings economic as 
well as therapeutic benefits effective 
treatments can also help to lower 
healthcare costs by reducing the need  
for more expensive care such as hospital 
stays or surgery or through preventing 
people from developing more serious or 
debilitating diseases that are costly to  
treat they also contribute to increased 
productivity by reducing or preventing the 
incidence of diseases that prevent people 
from working 
as outlined in the pricing pressure section 
on page 15 there is continued downward 
pressure on drug pricing and in the current 
difficult economic environment payers 
expect us to define the value our medicines 
create we are acutely aware of the 
challenges facing those who pay for 
healthcare and are committed to delivering 
value which will allow us to bring our 
medicines to the patients who need them 
therefore we work with payers and 
providers to understand their priorities and 
requirements and generate evidence of 
how our products offer value and support 
costeffective healthcare delivery
increasing access to healthcare
†
 
astrazeneca is committed to increasing 
access to healthcare for underserved 
patient populations in a sustainable way 
this is a priority for our responsible 
business agenda 
our access to healthcare strategy 
comprises three strands 
  the first component represents the most 
important way in which we enable 
access to our medicines – through our 
mainstream business 
additional information financial statements corporate governance strategic report
41 astrazeneca annual report and form 20f information 2013 confirmed external breaches
breaches of external sales and marketing 
codes and regulations
2013 11 
2012 10
2011 17
corrective actions
in relation to breaches of code of conduct 
and global policies by commercial 
employees including contract staff
number of persons
action taken 2013 2012
removed from role
1
187 188
formal warning 568 685
guidance and coaching 1813 1808
total 2568 2681
1
  in the majority of cases this means dismissal or contract 
termination but it can include resignation and demotion
sales and marketing ethics
†
 
we are committed to delivering consistently 
high ethical standards of sales and 
marketing practice worldwide and to 
ensuring compliance with our ethical 
interactions policy we report publicly  
on the number of
  confirmed breaches of external sales  
and marketing codes 
  instances of failure to meet our standards 
by employees in our commercial 
regions including contract staff
  corrective actions for breaches of our 
code of conduct or supporting policies 
by commercial employees including 
contract staff
during 2013 we continued to provide 
training for employees on the global 
standards that govern the way we conduct 
our business around the world we have 
comprehensive processes for monitoring 
compliance with our code of conduct  
and global policies including dedicated 
compliance professionals who support  
our line managers locally in monitoring their 
staff activities we also have a network  
of nominated signatories who review our 
promotional materials against all applicable 
requirements in addition in 2013 audit 
professionals conducted compliance audits 
of a selection of our marketing companies
as shown in the confirmed external 
breaches chart above we identified 11 
confirmed breaches of external sales and 
marketing regulations or codes in 2013 
2012 10 there were 1773 instances of 
noncompliance with astrazeneca’s code 
of conduct global policies or related 
control standards in our commercial 
regions including contract staff and other 
third parties the majority of which were 
minor 2012 1932 we believe that the 
movement in this number reflects our 
continued management oversight
as shown in the corrective actions table 
above following these breaches and it is 
important to note that a single breach can 
involve more than one person failing to 
meet required standards we removed 187 
people from their role formally warned 568 
others and provided further guidance or 
coaching on our policies for 1813 more 
the most serious breaches are raised with 
the audit committee
us corporate integrity agreement and 
the physician payments sunshine act 
reporting
in april 2010 astrazeneca signed an 
agreement with the doj to settle an 
investigation relating to the sales and 
marketing of seroquel ir the requirements 
of the associated cia between 
astrazeneca and the office of the inspector 
general of the us department of health 
and human services oig include a 
number of active monitoring and 
selfreporting obligations that differ from the 
selfreporting required by authorities in the 
rest of the world to meet these obligations 
astrazeneca provides notices to the oig 
describing the outcomes of particular 
investigations potentially relating to 
violations of certain laws as well as a 
separate annual report to the oig 
summarising monitoring and investigation 
outcomes relevant to the cia requirements 
under the cia astrazeneca also discloses 
on a publicly available website certain 
payments to us physicians and institutions 
in addition with effect from march 2014 
astrazeneca will begin reporting to the us 
government detailed information relating  
to payments to physicians and teaching 
hospitals in the us as required by the 
physician payments sunshine act
†  further information on astrazeneca’s approach to  
responsible business can be found in the responsible 
business section from page 220 and on our website  
wwwastrazenecacomresponsibility
  the second strand captures how we  
are making it easier for more patients to 
afford our medicines particularly in the 
emerging middle class in emerging 
markets we will build on the experience 
of initiatives such as our ‘faz bem’ 
wellbeing programme in brazil which 
provides significant discounts on our 
medicines and provides other services 
for patients and our patient access card 
schemes in central and eastern europe 
for example faz bem expanded by  
29 in 2013 which led to us reaching 
290000 more brazilian patients
  the final area of focus is in strengthening 
healthcare capabilities particularly in 
developing economies where the price  
of a medicine may not be the most 
significant barrier to providing healthcare 
our ambition here is to considerably 
expand our efforts in africa to enable  
far greater access to hypertension 
medication and other essential services 
for patients who do not have access to 
medication or other forms of care in 
2014 we will evaluate how we can best 
do this and with whom we can partner 
most effectively we believe that working 
in partnership with different stakeholders 
is the most effective and sustainable way 
to increase access to healthcare
“ if we are to fulfil our potential 
to transform the lives of 
patients in emerging markets 
we need to develop 
sustainable ways of increasing 
access to healthcare” 
  m a rk m a l lo n  
evp  international
42 astrazeneca annual report and form 20f information 2013
strategic report  business review  sales and marketing manufacturing 
and supply
our programme of investment  
in continuous improvement helps  
us get our medicines to patients  
as efficiently as possible
our strategy is to balance innovative and 
efficient inhouse manufacturing capabilities 
with external manufacturing resources 
particularly in relation to the early stages of 
our production process where efficiencies 
can be achieved we continue to consider 
using outsourced production but our 
strategy is to retain the final stages of the 
production cycle inhouse this balance is 
designed to give us product integrity and 
quality assurance while affording us cost 
efficiency and volume flexibility
we progressed two key production facilities 
during 2013 in china taizhou our second 
facility in the country and in russia 
vorsino which will enable us to better 
supply our products to both markets locally 
these sites are intended to commence 
phased commercial production in 
20142015 in 2013 we also announced 
plans to invest 190 million to construct a 
new facility at our macclesfield uk facility 
by 2017  to continue production of zoladex 
the work is led by our global engineering 
group who put a strong focus on carrying 
out these projects fully in line with our 
ethical and safety standards 
regulation and compliance 
facilities and processes for manufacturing 
medicines must observe rigorous 
standards of quality they are subject to 
inspections by regulatory authorities to 
ensure compliance with prescribed 
standards regulatory authorities have the 
power to require improvements to facilities 
and processes halt production and impose 
conditions that must be satisfied before 
production can resume regulatory 
standards are not harmonised globally  
and evolve over time
we hosted 26 independent inspections 
from 10 different regulatory authorities  
in 2013 all observations from such 
inspections are reviewed along with the 
outcomes of internal audits and subsequent 
improvement actions are put in place as 
required to ensure ongoing compliance 
we are actively involved in providing  
input into evolving regulations both at 
national and international levels through  
our membership of industry associations  
we work actively for example with both 
efpia and pharmaceutical research and 
manufacturers of america on discussions 
around improving supply chain security  
and minimising drug shortages
our supply and manufacturing strategy is 
based on our commitment to maintaining 
the highest ethical standards while 
complying with internal policies and laws 
and regulations we achieve this by placing 
compliance responsibility with line 
managers who are supported by dedicated 
compliance teams independent assurance 
is provided by our ia function 
product quality and supply chain 
we are committed to delivering product 
quality that underpins the safety and 
efficacy of our medicines we have a 
comprehensive quality management 
system in place designed to assure the 
quality of our products in compliance  
with relevant regulations
continuous improvement
our continuous improvement programme 
allows us to improve our systems and 
minimise the impact of our activities on the 
environment we focus on what adds value 
to our customers and patients as well as 
waste elimination the programme has 
delivered significant benefits in recent 
years including reduced manufacturing 
lead times and lower average stock levels 
both of which improve our ability to respond 
to customer needs and reduce inventory 
costs all improvements are designed to 
ensure we maintain product quality safety 
and customer service
we have applied lean production business 
improvement tools and ways of working to 
improve the efficiency of our manufacturing 
plants for a number of years and in recent 
years have applied them to the whole  
of our supply chain this has led to 
improvements in quality lead times and 
overall equipment effectiveness in 2013 
we continued to establish more efficient 
processes with experts from our global 
supply chain organisation providing 
crossfunctional support throughout  
the business 
“  people who take our 
medicines rightly expect 
them to be safe and 
effective our quality 
management systems are 
designed to provide that 
assurance” 
  d a v i d s m i t h  
evp  operations  is 
additional information financial statements corporate governance strategic report
43 astrazeneca annual report and form 20f information 2013 working with suppliers
†
we are committed to integrating 
astrazeneca’s ethical standards into 
our procurement activities and decisions 
worldwide our objective is to monitor 
compliance through our ongoing 
assessment and programmes which 
focus on areas experiencing the greatest 
challenges we address challenges with 
our suppliers and promote improvement 
through collaboration
our global responsible procurement 
standard defines one of the key business 
processes for integrating our ethical 
standards into our procurement activity 
and decision making worldwide the same 
initial assessment process is used for all 
suppliers and more detailed focused 
assessments are then made relevant to the 
service provided since the programme 
began in 2009 we have completed 7 138 
assessments of new and existing suppliers 
which accounts for approximately 90 of 
our spend with suppliers
we categorise suppliers as high medium 
or low risk we focus our auditing efforts  
on high and medium risk rated suppliers 
but we also audit some suppliers that we 
consider to be lower risk to confirm our 
performance expectations across all 
suppliers in 2013 we continued our audit 
activity with 61 audits across 25 countries 
482 audits in 2012 as set out in the table 
above a full audit of all incumbent suppliers 
was completed in 2012 resulting in only 
new supplier and reassessment audits 
taking place in 2013 improvements to the 
earlier stages of supplier due diligence 
based on lessons learnt since 2009 have 
allowed an increased level of focus on 
suppliers categorised as ‘high risk’ 
fifty three percent of suppliers audited 
demonstrated standards that met our 
expectations with a further 41 
implementing improvements to address 
minor noncompliances none of the 
suppliers audited this year will require 
significant followup to confirm they will 
make the improvements we require we 
will not use suppliers who are unable or 
unwilling to meet our expectations in  
a timely way during 2013 we identified  
and rejected 48 prospective suppliers  
from consideration during our due  
diligence process 
environmental impact
†
our targets for 2013
‡
 included reducing 
  operational greenhouse gas footprint 
to 794 thousand tonnes co 2 eyr
  hazardous waste to 068 tonnesm 
sales and nonhazardous waste to 
051 tonnesemployee
  water use to 39 million m
3

we work to reduce our greenhouse  
gas emissions by among other things 
improving our energy efficiency and 
pursuing lowercarbon alternatives to fossil 
fuels at our sites we strive to ensure that 
our travel and transport activities are as 
efficient as possible our carbon footprint  
is also affected by some of our respiratory 
therapies specifically our pressurised 
metereddose inhalers that rely on 
hydrofluoroalkane hfa propellants  
to deliver the medicine to a patient’s 
airways while hfas have no ozone 
depletion potential and a third or less  
of the global warming potential than the 
chlorofluorocarbons cfcs they replace 
they are still greenhouse gases our target 
is to reduce our operational greenhouse 
gas footprint excluding emissions from 
patient use of our inhaler therapies by  
20 from our 2010 levels by 2015 in 2013 
our operational greenhouse gas footprint 
totalled 718 thousand tonnes a reduction 
of 20 from our 2010 baseline further 
information on carbon reporting is included 
in the responsible business section from 
page 220
managing risk
given our strategy to outsource the majority 
of api manufacturing we place particular 
importance on our global procurement 
policies and integrated risk management 
processes to ensure uninterrupted supply 
of highquality raw materials supplies are 
purchased from a range of suppliers  
we factor in a wide range of potential risks 
to global supply such as disasters that 
remove supply capability or the unavailability 
of key raw materials and work to ensure 
that these risks are effectively mitigated 
contingency plans include the appropriate 
use of dual or multiple suppliers and 
maintaining appropriate stock levels 
although the price of raw materials may 
fluctuate our global purchasing policies 
seek to avoid such fluctuations becoming 
material to our business
we also take into account reputational risk 
associated with our use of suppliers and 
are committed to working only with 
suppliers that embrace standards of ethical 
behaviour that are consistent with our own 
as part of our overall risk management we 
carefully consider the timing of investment 
with a view to ensuring that secure supply 
chains are in place for our products 
we also have a programme in place to 
provide appropriate supply capabilities 
for our new products
“ as a responsible business 
we will only work with those 
companies whose ethical 
standards are consistent with 
our own our supplier due 
diligence processes help 
provide confirmation that 
they meet our expectations” 
  k a t a rina a gebo r g  
chief compliance officer 
supplier audits
year
number of 
internal audits
number of 
external
audits
2013 30 31
2012 44 438
2011 64 687
number of audits by 
geographic region 2013
asia pacific 28
europe 20
americas 11
middle east  africa  2
total 61
44 astrazeneca annual report and form 20f information 2013
strategic report  business review  manufacturing and supply the management of waste is another  
key aspect of our commitment and we  
have a 2015 target of a 15 reduction in 
hazardous and nonhazardous waste from 
our 2010 levels our primary focus is waste 
prevention but where this is not practical 
we concentrate on waste minimisation  
and appropriate treatment or disposal  
to maximise the reuse and recycling of 
materials and minimise disposal to landfill 
in 2013 our total waste was 328 thousand 
tonnes with a tonnesm index of 13 our 
hazardous waste has been reduced by 
47 a reduction of 31 indexed to m 
revenues since 2010 principally due to 
changing production patterns and a major 
investment at our manufacturing site in the 
south west of the uk to enable recycling 
and reuse of solvent wastes our 
nonhazardous waste indexed against 
number of staff has not improved due  
to the significant reductions in our staff 
numbers since the baseline was set
we recognise the need to use water 
responsibly and where possible to 
minimise the use of water in our facilities  
to support the delivery of our target  
to reduce water use by 25 from our  
2010 levels by 2015 we now have water 
conservation plans at our largest sites  
in 2013 our water use was 37 million m
3
  
a reduction of 19 from our 2010 baseline 
water use indexed to revenues was 
140m
3
m 5 from 2010 baseline
we are also working to ensure that we 
measure and report the impact of our 
external manufacturing activity on the 
environment and that our suppliers have 
appropriate environmental improvement 
targets we believe we have captured  
data for more than 90 of the globally 
managed outsourced manufacture of key 
intermediates and apis formulation and 
packaging for our established brands  
the full data is available on our website 
wwwastrazenecacomresponsibility
our continued commitment to product 
stewardship is underpinned by our  
ongoing work to integrate environmental 
considerations into a medicine’s complete 
lifecycle from discovery and development 
through manufacturing commercialisation 
and to its ultimate disposal we follow a 
progressive programme designed to ensure 
that our manufacturing emissions of apis 
do not exceed our own internally defined 
standards we confirmed safe discharges 
at all of our own manufacturing sites in 2010 
and have a rolling programme to confirm 
ongoing compliance during 2013 we 
reassessed 12 of our sites to confirm safe 
discharges we also follow a progressive 
approach and internal process to ensure 
ongoing ecopharmacovigilance for our 
products this involves regular reviewing of 
emerging science and literature to identify 
any new information that might inform the 
environmental risk management plans for 
our products this is a novel initiative and 
we published our approach in the drug 
safety journal in july 2013 further 
information is available on our website 
wwwastrazenecacomresponsibility 
including environmental risk assessment 
data for our medicines
†  further information on astrazeneca’s approach to  
responsible business can be found in the responsible 
business section from page 220 and on our website  
wwwastrazenecacomresponsibility
‡  figures have been revised from those previously  
published to incorporate our biologics capabilities into  
our targets the operational greenhouse gas footprint  
figures have been revised to incorporate improved  
estimates of road freight and energy data our targets  
for 20112015 were set in 2010
13 718
12 739
11 870
operational greenhouse gas footprint 
emissions
‡
 thousand tonnes
13 328
12 436
11 496
waste production 
thousand tonnes
13 37
12 36
11 45
water
million m
3

additional information financial statements corporate governance strategic report
45 astrazeneca annual report and form 20f information 2013 making hearts  
beat longer
cardiac regeneration
pioneering science
we aim to develop 
medicines that will 
slow or stop cardiac 
disease progression 
or improve the 
function of a 
damaged heart 
our goal is to develop therapies for 
congestive heart failure patients by activating 
cardiac stem cells in the heart to regenerate 
the myocardium if successful this would 
offer a potential cure to patients who are 
dying of heart failure and create an entirely 
new treatment paradigm 
breakthrough science in heart regeneration 
indicates that specific powerful biological 
molecules also known as ‘paracrine  
factors’ play a major role in cardiac stem  
cell activation and the repair of damaged 
heart cells we are leveraging our biologics 
expertise in developing these potentially 
transformative new treatments
additionally in march 2013 astrazeneca  
and moderna therapeutics agreed to 
develop pioneering messenger rna 
therapeutics these have the potential  
to develop therapeutic protein in vivo  
and restore cardiac function in the body
then in june 2013 we announced an 
agreement with the karolinska institutet 
stockholm sweden to create an integrated 
centre for cardiovascular and metabolic 
diseases one of its priorities will be  
cardiac regeneration 
see the research and development section from page 36  
and the cardiovascular and metabolic disease section in the 
therapy area review from page 52 for more information
46 astrazeneca annual report and form 20f information 2013
strategic report  pioneering science lifechanging medicines 173 million 
more people die annually from cardiovascular 
diseases than from any other cause – an 
estimated 17 3 million people in 2008 
347 million 
people worldwide have diabetes
real lives
one young patient now 49 was 
diagnosed with heart failure in 2001 and 
10 years later received a heart transplant 
– the only option available to her she 
said “it got to a point where i could only 
take 15 steps at a time before sitting 
down to catch my breath and to me 
this was perfectly normal” most heart 
failure patients are not eligible for a heart 
transplant and her story emphasises 
the desperate need for new therapeutic 
approaches to reduce the burden of 
heart failure
lifechanging medicines
each year around 58 million people are 
diagnosed with heart failure in the us with 
more than 23 million diagnosed worldwide 
under the current standard of care 50 of patients will die within five years of 
diagnosis with 90 dying within 10 years
astrazeneca has a strong history of innovation in cardiac care more than three 
decades ago we revolutionised the treatment of heart failure by introducing 
betablockers this innovation has saved many lives worldwide our most recent 
contribution to cardiac care is brilinta 
making hearts  
beat longer
cardiac regeneration
 who data
additional information financial statements corporate governance strategic report
47 astrazeneca annual report and form 20f information 2013 overview
our business model section on page 10 demonstrates how we apply 
our resources and assets across the whole lifecycle of a medicine
these efforts were detailed in the business review in this therapy area review we describe how we 
apply those resources across our chosen therapy areas
fourteen projects inclusive of combination 
trials entered first human testing phase i 
during 2013 for further detailed information 
see our development pipeline table from 
page 194 
across the clinical portfolio 33 projects 
successfully progressed to their next 
phase this excludes two phase i studies 
expanded to include patients in 2013  
one progression within phase ii and one 
phase ii start in a new indication the 
pipeline delivery table opposite summarises  
the year’s key pipeline progressions  
four nmes commenced phase iii trials  
as a result of the acceleration of selected 
quality programmes fifteen projects  
were withdrawn in 2013 13 projects  
were withdrawn following poorer than 
anticipated safety or efficacy results  
one was withdrawn for economic reasons 
and one because of uncertainty in the 
scientific hypothesis 
the early clinical pipeline shows a shift 
toward specialty care with 80 of 
programmes in phase i and ii directed at 
such indications our latestage pipeline 
was strengthened during 2013 through  
a combination of internal acceleration  
of priority programmes and inlicences  
and acquisitions of externally originated 
compounds in our core therapy areas we 
believe that our investment in the quality of 
our science and strong governance will 
allow us to launch a rising number of 
firstinclass therapies in the next decade
our biologics pipeline has matured in 
recent years resulting in a 5050 balance of 
small molecule programmes and biologics 
in the clinical portfolio in specialty care we 
focus on specifically defined or biologically 
targeted populations determined by the 
scientific pathway of the disease and mode 
of action of the molecule an increasing 
number of specialty care products require  
a diagnostic test for patient eligibility or to 
achieve the best outcomes the diseases 
which specialty care products treat are 
generally more severe with the patient 
population concentrated under the care  
of a subset of doctors and in specialty 
healthcare facilities specialty care  
products generally command higher prices 
and must deliver higher value making them 
available to the right patients requires tight 
coordination between our commercial 
medical and supply chain teams 
for information about the risks inherent in 
the clinical phase of development please 
see the principal risks and uncertainties 
section from page 200 
our products 
while the focus of this therapy area review 
is on our key marketed products many of 
our other established products are crucial 
to certain markets within emerging markets 
and taken together represent an important 
part of astrazeneca’s business
for a list of all our potential new products 
and product lifecycle developments see 
the pipeline by therapy area table on page 
50 and the development pipeline table 
from page 194 for details of patent expiries 
of our key marketed products see the 
patent expiries section on page 198
indications for each product described  
in this therapy area review may vary  
from country to country local prescribing 
information should be referred to for 
countryspecific indications for any 
particular product
many of our products are subject to 
litigation information about material legal 
proceedings can be found in note 25 to  
the financial statements from page 176 
details of relevant risks are set out in the 
principal risks and uncertainties section 
from page 200
as outlined in the our strategic priorities 
section from page 16 a key element of our 
drive to achieve scientific leadership is our 
decision to focus on distinctive science in 
three core therapy areas cardiovascular 
and metabolic disease cvmd oncology 
and respiratory inflammation and 
autoimmunity ria we will do this by 
exploiting our unique combination of 
strengths in biologics and small molecules 
immunotherapies and protein engineering 
technologies our approach to infection 
neuroscience and gastrointestinal ing  
is opportunitydriven
this therapy area review reflects the 
range of our activities they are led by  
our gpps team but draw heavily on the 
expertise of the whole organisation so 
ensuring our science is connected with 
patients’ needs we embed these insights 
into our work based on our interactions  
with healthcare providers patients 
regulators and payers this approach  
helps us to prioritise resources and 
optimise our portfolio thereby delivering 
medicines that customers value and  
which meet their needs 
development pipeline 
data in this section is as at 31 december 
2013
our pipeline includes 99 projects of which 
85 are in the clinical phase of development 
as shown in the development projects 
table opposite we now have a total of 33 
projects in phase i 32 nmes 27 projects 
in phase ii 23 nmes 19 projects in 
latestage development either in phase iii 
or under regulatory review 11 nmes  
and are running 20 significant lifecycle 
management projects the 27 projects  
in phase ii include parallel indications for 
projects which have reached phase iii 
the 19 projects in latestage development 
either in phase iii or under regulatory  
review include
  11 nmes 
  four projects exploring additional 
indications for these molecules
  four molecules already approved or 
launched in at least one major market
strategic report  therapy area review
48 astrazeneca annual report and form 20f information 2013 phase i phase ii phase iii line extensions
33 27 19
1
20
2
29 25 11
3
19
4
29 24 7
5
32 9 17
44 11 14
23
6
34
34
2013
2012
2011
2010
2009
development projects 
1  
includes four projects that are either approved or launched in at least one market includes four projects that are filed in at least one market
2 
includes five projects that are either approved or launched in at least one market includes one project that is filed in at least one market
3
  included five projects that were either approved or launched in at least one market 
4  
included eight projects that were filed approved or launched in at least one market
5  
included six projects that were filed approved or launched in at least one market 
6  
included seven lifecycle management projects reintroduced from brazil russia india china mexico turkey and japan
sales by therapy area
2013 2012 2011
sales
m
reported
growth

cer
growth

sales
m
reported
growth

cer
growth

sales
m
cardiovascular and metabolic disease 8830 7 6 9531 7 4 10212
oncology 3193 9 2 3489 6 3 3705
respiratory inflammation and autoimmunity 4677 6 7 4415 1 2 4468
infection neuroscience and gastrointestinal 9011 14 13 10490  28 27 14596
other businesses – – – 48 nm nm 610
total 25711 8 6 27973 17 15 33591
 represents all other pharmaceutical product sales that are not in the above therapy areas
pipeline delivery
milestone product 2013 achievement
key pipeline progressions 
phase iii starts and first 
regulatory filings
metreleptin biologics license application accepted and priority review granted by the fda for metreleptin for the treatment 
of metabolic disorders associated with inherited or acquired lipodystrophy
naloxegol maa accepted by ema and fda for opioidinduced constipation
olaparib maa accepted by ema for maintenance treatment of patients with brca mutated platinumsensitive relapsed 
serous ovarian cancer
phase iii programmes commenced in 1
st
 line brcamutated ovarian cancer solo1 platinumsensitive 
relapsed brcamutated ovarian cancer solo2 and 2
nd
 line gastric cancer study gold
moxetumomab pasudotox phase iii programme has commenced for hairy cell leukaemia
selumetinib phase iii programme has commenced for 2
nd
 line treatment of locally advanced or metastatic kras mutation
positive nsclc
benralizumab phase iii programme has commenced for severe asthma
latestage licensing
acquisitions
epanova product obtained through acquisition of omthera
maa accepted by fda for treatment of severe hypertriglyceridaemia
pt003 product obtained through acquisition of pearl therapeutics
phase iii programme commenced for pt003 for copd
roxadustat fg4592 product obtained through strategic collaboration with fibrogen
programme in late stage but astrazeneca phase iii programme not dosed yet
major market approvals fluenz tetra influenza 
vaccine live intranasal
ema approval for the prevention of seasonal influenza in children this is the first and only intranasal fourstrain 
influenza vaccine available for children and adolescents from 24 months and up to 18 years of age in europe
2014 achievement
farxiga fda approval for farxiga dapagliflozin for the treatment of adult patients with type 2 diabetes 
xigduo ema approval for xigduo dapagliflozinmetformin hydrochloride for the treatment of adult patients with  
type 2 diabetes
additional information financial statements corporate governance strategic report
49 astrazeneca annual report and form 20f information 2013 phase i 32 nmes phase ii 23 nmes phase iii 7 nmes line extensions
small molecule large molecule small molecule large molecule small molecule large molecule small molecule
our growing latestage pipeline
pipeline by therapy area as of 31 december 2013
atm avi —
azd0914 
azd3293

 —
azd6423 
azd1208 —
azd5363

 —
azd9150

 —
volitinib

 —  
azd6094
azd8186 ➔
azd9291
2
 
azd6738 
azd8848

 —
azd7624 
azd4721 
azd1419 
pt010 
medi6012 —
medi550 —
medi559 —
prvv
medi4893 
medi9287 
medi0639

 —
medi3617

 —
medi4736
2
 —
medi565

 —
medi6469

 —
medi0680 
amp514
moxetumomab   
pasudotox

 pall
medi4736

  
 tremelimumab
medi4736

  
 dabrafenib  trametinib
medi551

 —
medi5872

 —
medi9929

 —
azd4901➔
roxadustat 
fg4592
azd1722

➔
azd5847 —
cxl

 —
azd3241 —
azd5213➔  
tourette’s syndrome
neuropathic pain
azd4547 —
olaparib —
breast cancer
selumetinib

 —  
azd6244 arry142886 
various cancers
azd2014 ➔
azd1775

 
azd2115

 —
azd5069
3
 —
rdea3170➔
medi551

 —
medi573

 —
tremelimumab 
benralizumab

 —  
copd
mavrilimumab

 —
medi546

 —
medi7183

 —
medi8968
4
 —
sifalimumab

 —
tralokinumab —  
asthmaipf
medi2070➔
brodalumab

 ➔  
asthmapsoriatic arthritis
  cardiovascular and metabolic disease cvmd
 oncology
  respiratory inflammation and autoimmunity ria
  infection neuroscience and gastrointestinal ing
  addition
 — no change
➔ progression
f new filing
✓ approvedlaunched
key – showing movements in 2013
strategic report  therapy area review
50 astrazeneca annual report and form 20f information 2013 phase i 32 nmes phase ii 23 nmes phase iii 7 nmes line extensions
small molecule large molecule small molecule large molecule small molecule large molecule small molecule
brilintabrilique✓
epanova

 f
farxigaforxiga✓
dapagliflozin
†
caz avi

 —
caz104 
serious infection
caz avi

➔  
caz104 hapvap
zinforo

 —
ceftaroline
naloxegol

 f
nktr118
caprelsa —  
medullary thyroid cancer
olaparib f
olaparib solo1➔
olaparib solo2➔
olaparib gold➔
selumetinib

 ➔ 
azd6244
lesinurad —
pt003 gff 
metreleptin f
moxetumomab➔
pasudotox

hcl
brodalumab

 —
copd
benralizumab

➔
severe asthma
brilintabrilique euclid —
brilintabrilique —
pegasustimi 54
brilintabrilique  
socrates
brilintabrilique themis 
bydureon exscel —
bydureon dual  f
chamber pen
bydureon weekly  
suspension
xigduo ✓
farxigaforxiga 
dapagliflozin 
declare
kombiglyze xr —
komboglyze fdc
1
saxagliptin — 
dapagliflozin fdc
onglyza savortimi 53 —
diprivan
 
—
entocort —
linaclotide

 
nexium —
pepticulcer bleeding
caprelsa ➔  
differentiated thyroid cancer
faslodex —  
1
st
 line advanced breast 
cancer
iressa —
treatment beyond 
progression
symbicort bai —
asthmacopd
 partnered product 
† farxiga in the us forxiga in the rest of world 
1
 kombiglyze xr in the us komboglyze fdc in the eu
2
 phase i study expanded to include patients in 2013
3
 progression within phase ii in 2013
4
 phase ii start in new indication of hidradenitis suppurativa hs in 2013
“ i’m really pleased by the progress made during 2013 at the end of the 
year we had 99 projects in our pipeline of which 85 were in the clinical 
phase of development and 14 were approved launched or filed”
 pascal soriot 
 chief executive officer
additional information financial statements corporate governance strategic report
51 astrazeneca annual report and form 20f information 2013 cardiovascular and  
metabolic disease
more people die annually from cv diseases than from any other 
cause – an estimated 17 3 million people representing 30 of 
the global total more than 80 of deaths take place in low and 
middleincome countries
cardiovascular cv disease
  atacand
1
 candesartan cilexetil is an 
angiotensin ii antagonist used for the 1
st
 line 
treatment of hypertension and symptomatic 
heart failure
  axanum acetylsalicylic acid asa and 
esomeprazole is a fixeddose combination 
indicated for prevention of cv events in 
highrisk cv patients in need of daily 
lowdose asa treatment and who are at  
risk of gastric ulcers
  brilintabrilique ticagrelor is an oral 
antiplatelet for the treatment of acute 
coronary syndromes acs 
  crestor
2
 rosuvastatin calcium is a statin 
used for the treatment of dyslipidaemia and 
hypercholesterolemia in some markets it  
is also indicated to slow the progression  
of atherosclerosis and to reduce the risk  
of first cv events
  plendil felodipine is a calcium antagonist 
used for the treatment of hypertension  
and angina 
  selokentoprolxl metoprolol succinate  
is a betablocker oncedaily tablet used  
for 24hour control of hypertension and for 
use in heart failure and angina
  tenormin atenolol is a cardioselective 
betablocker used for hypertension angina 
pectoris and other cv disorders
  zestril
3
 lisinopril dihydrate is an 
angiotensinconverting enzyme inhibitor 
used for the treatment of a wide range  
of cv diseases including hypertension
metabolic disease 
  byetta exenatide injection is an injectable 
medicine indicated to improve blood sugar 
glucose control along with diet and exercise 
in adults with type 2 diabetes mellitus
  bydureon exenatide extended release 
injectable suspension is an injectable 
medicine indicated to improve blood sugar 
glucose along with diet and exercise in 
adults with type 2 diabetes mellitus
  forxigafarxiga dapagliflozin is a 
selective inhibitor of human sodiumglucose 
cotransporter 2 sglt2 inhibitor used to 
improve glycaemic control in adult patients 
with type 2 diabetes mellitus
  kombiglyze xr saxagliptin and metformin 
xr combines saxagliptin onglyza and 
metformin extended release metformin 
metformin xr in a onceaday tablet for  
the treatment of type 2 diabetes mellitus 
  komboglyze saxagliptin and metformin  
hcl combines saxagliptin onglyza and 
metformin immediate release metformin ir 
in a twicedaily tablet for the treatment of 
type 2 diabetes mellitus 
  onglyza saxagliptin is an oral dipeptidyl 
peptidase 4 dpp4 inhibitor used for the 
treatment of type 2 diabetes mellitus
  symlin pramlintide acetate is an injected 
amylin analogue for the treatment of type 1 
and type 2 diabetes mellitus in patients  
with inadequate glycaemic control on 
mealtime insulin 
  xigduo dapagliflozin and metformin 
hydrochloride combines dapagliflozin 
forxiga an sglt2 inhibitor and metformin 
hydrochloride in a twicedaily tablet to 
improve glycaemic control in adult patients 
with type 2 diabetes mellitus who are 
inadequately controlled by metformin alone
our marketed products
 high blood pressure 47bn
 abnormal levels of blood cholesterol 299bn
 diabetes 435bn
 thrombosis 98bn
 other 396bn
therapy area world market  
matq313
1698bn
wordwide market value 
1
  licensed from takeda chemicals industries ltd
2
   licensed from shionogi in december 2013 astrazeneca  
and shionogi announced the extension of the global licence 
agreement for crestor and the modification of the royalty 
structure effective 1 january 2014
3
 licensed from merck
52 astrazeneca annual report and form 20f information 2013
strategic report  therapy area review  233 million
who estimates that the number of people 
who die from cv diseases mainly from 
heart disease and stroke will reach 
233 million by 2030 cv diseases are 
projected to remain the single leading 
cause of death
347 million people worldwide have diabetes 
who projects that diabetes will be the 
seventh leading cause of death in 2030
source who factsheets 2013 cv data from 2008 diabetes 
data from 2011
our strategic priorities
astrazeneca is a leader in the treatment  
of cardiovascular cv and metabolic 
diseases we aim to build on our strong 
position with a particular focus on 
thrombosis blood clotting atherosclerosis 
hardening of the arteries and metabolic 
diseases including diabetes and its 
complications despite improvements  
in the quality of diagnosis and treatment 
unmet medical need remains high these 
diseases together with their complications 
continue to grow worldwide both in 
established markets and emerging 
markets as a consequence of the  
spread of a westernised lifestyle we are 
developing potential new therapies using  
a variety of approaches including small 
molecules antibodies peptides and 
proteins to address this growing need
our strategy for our cv disease area is  
to maximise the benefits for patients from 
our existing portfolio of medicines such as 
our statin crestor and ensure we supply 
brilintabrilique our oral antiplatelet 
treatment to all those who can benefit from 
it we also want to optimise the potential  
of our research and clinical projects for the 
treatment of conditions such as heart and 
kidney diseases atherosclerosis and acute 
coronary syndromes acs in addition  
we are exploring ways to expand our  
core capabilities to deliver differentiated 
products such as research into cardiac 
regeneration see the case study on page 
46 for more information
finally we are searching for business 
development transactions that complement 
our activities for example in march  
2013 we cemented our longstanding 
collaboration with the karolinska institutet 
by announcing the creation of a research 
centre at the institutet’s site in stockholm 
sweden the centre will conduct 
preclinical and clinical studies to advance 
the understanding of cv and metabolic 
disease pathophysiology and assess  
new drug targets also in march 2013 we 
announced an exclusive agreement with 
moderna therapeutics to discover develop 
and commercialise pioneering messenger 
rna therapeutics for the treatment of 
serious cv metabolic and renal diseases
these transactions will also support our 
ambitions for our metabolic disease area 
with its focus on diabetes diabetic 
nephropathy and obesity we plan to 
continue building our base with existing 
brands and develop our research and 
clinical projects so we are best able to meet 
individual patients’ unique sets of medical 
needs and build a position of leadership  
in the area
cardiovascular disease 
hypertension high blood pressure and 
dyslipidaemia abnormal levels of blood 
lipids damage the arterial wall which may 
lead to atherosclerosis lipidmodifying 
therapy primarily statins is a cornerstone 
for the treatment of atherosclerosis
acs is an umbrella term for sudden chest 
pain and other symptoms due to insufficient 
blood supply ischaemia to the heart 
muscle acs is the acute manifestation of 
ischaemic heart disease and is associated 
with considerable subsequent mortality and 
morbidity there remains a significant need 
to improve patient outcomes and reduce 
the costs of treating acs
our 2013 focus
globally crestor gained market share  
by value after its launch in 2003 with  
its differentiated profile in managing 
cholesterol levels and its more recent label 
indications for slowing the progression of 
atherosclerosis and reducing the risk of cv 
events in some markets crestor is the only 
statin with an atherosclerosis indication  
in the us not limited by disease severity  
or restricted to patients with coronary heart 
disease a competitor to crestor  atorvastatin 
lipitor was available in generic form in the 
us from late 2011 and since may 2012 
several generic atorvastatin products have 
become available
fewer than half the people thought to  
have high levels of lowdensity lipoprotein 
cholesterol ldl c socalled ‘bad 
cholesterol’ are diagnosed and treated  
of treated patients only about half reach 
their doctors’ recommended cholesterol 
targets using existing treatments study 
data have shown that the usual 10mg 
starting dose of crestor is more effective  
at lowering ldl c and produces greater 
achievement of ldl c goals than 
commonly prescribed doses of other 
statins crestor also produces an increase 
in highdensity lipoprotein cholesterol 
hdl c socalled ‘good cholesterol’ 
across the dose range and has again been 
shown to reduce atherosclerotic plaque
crestor continues to face increasing 
challenges from generic products for 
instance competition resulting from the 
expiration of the crestor patent in canada 
had a significant negative impact on our 
2013 financial results patents protecting 
crestor have been subject to a number of 
challenges in different jurisdictions details 
of these matters are included in note 25 to 
the financial statements from page 176
while also subject to competition from 
generics atacand continues to be an 
important treatment option for patients  
with hypertension and symptomatic heart 
failure it is approved for the treatment of 
additional information financial statements corporate governance strategic report
53 astrazeneca annual report and form 20f information 2013 hypertension in more than 125 countries 
and for symptomatic heart failure in  
more than 70 countries atacand plus 
candesartan cilexetilhydrochlorothiazide  
is a fixeddose combination of atacand  
and the diuretic hydrochlorothiazide 
indicated for the treatment of hypertension 
in patients who require more than one 
antihypertensive therapy atacand plus  
is approved in 99 countries
brilintabrilique is an oral antiplatelet 
treatment for acs in a new chemical class 
called cyclopentyltriazolopyrimidines 
which are selective adenosine diphospate 
adp receptor antagonists that act on  
the p2y12 adpreceptor brilintabrilique 
remains under regulatory review in nine 
countries it has been approved in 100 
countries including the us canada  
and brazil under the trade name brilinta 
and in the eu iceland and norway  
under the trade name brilique additional 
marketing authorisations and regulatory 
submissions are planned for 2014 
epanova is a patentprotected novel 
ultrapure mixture of free fatty acids  
derived from fish oils including multiple 
longchain omega3 fatty acids that 
reduces triglycerides and improves other 
key lipid parameters epanova came  
into astrazeneca’s portfolio through the 
acquisition in july 2013 of omthera a 
specialty pharmaceutical company based 
in the us focused on the development  
and commercialisation of new therapies for 
dyslipidaemia in september 2013 the fda 
accepted an nda for epanova for review
clinical studies 
brilintabrilique is being investigated in  
a range of clinical trials under the 
parthenon programme parthenon  
is an astrazenecafunded comprehensive 
longterm and evolving global research 
initiative designed to address unanswered 
questions in atherothrombotic disease and 
to investigate the impact of brilintabrilique 
on reducing cv events and death the 
benefit of brilintabrilique on cv thrombotic 
events including cv mortality observed  
in patients who have had an acs event 
supports continued study in other areas  
of cv disease 
the current parthenon programme is 
designed to include around 80000 patients 
worldwide key clinical trials captured within 
the programme are described below
  pegasustimi 54 a 21000 patient 
study continues in more than 30 
countries the study examines the risk
benefit profile of brilintabrilique plus 
aspirin to prevent adverse cv events 
compared with aspirin alone in higherrisk 
patients who had experienced a heart 
attack at least one but not more than 
three years before the study
  euclid is a global clinical trial involving 
13500 patients with peripheral arterial 
disease pad a condition affecting 
approximately 27 million people in europe 
and north america it began enrolling 
patients in early 2013 and is evaluating 
the efficacy of brilintabrilique 
monotherapy compared to clopidogrel 
monotherapy in reducing a composite 
endpoint of cv death myocardial 
infarction mi or ischaemic stroke
  socrates is a global clinical trial 
planned to enrol 9600 patients who have 
experienced an acute ischaemic stroke 
or transient ischaemic attack tia 
annually 15 million people worldwide 
suffer a stroke ischaemic strokes and 
tias occur as a result of an obstruction  
of a vessel supplying blood to the brain 
the socrates study evaluates the 
efficacy of brilintabrilique monotherapy 
compared to aspirin in reducing major 
vascular events
  themis is a global clinical trial involving 
17 000 patients with type 2 diabetes 
mellitus at high risk of cardiovascular 
events the study compares the efficacy 
of longterm treatment with ticagrelor 
versus placebo for the prevention of major 
cardiovascular events in patients without 
a history of previous mi or stroke but with 
documented coronary atherosclerosis
in 2013 we announced plans to 
commence the strength trial planned  
to enrol 13000 patients into a phase iii 
doubleblind longterm outcomes study  
to assess statin residual risk reduction with 
epanova in high cardiovascular risk patients 
with hypertriglyceridaemia statin treated
metabolic disease
type 2 diabetes mellitus is a chronic 
progressive disease of epidemic scale 
affecting at least 90 of people with 
diabetes worldwide the disease continues 
to grow as a consequence of western 
lifestyles it increasingly affects people  
at a younger age with many patients 
requiring multiple medications to control 
their condition
there are a number of established oral 
generic and branded treatments available 
such as biguanides and sulfonylureas 
however newer classes such as dpp4 
inhibitors sglt2 inhibitors and 
glucagonlike peptide 1 glp1 agonists 
are successfully entering the market by 
offering effective blood sugar control  
the cv safety of these new classes  
has been given particular emphasis in 
recent regulatory reviews and guidance 
documents provided by the fda and  
other regulatory authorities
our 2013 focus
in 2013 astrazeneca continued its 
worldwide diabetes alliance with bms  
to codevelop and cocommercialise  
two compounds discovered by bms for  
the treatment of type 2 diabetes mellitus 
onglyza and forxiga in april 2013 
following the completion of bms’s 
acquisition of amylin in august 2012 
astrazeneca and bms assumed full  
global commercialisation rights of amylin’s 
portfolio of products related to diabetes 
and other metabolic diseases with a 
primary focus on a franchise of glp1 
agonists for the treatment of type 2 
diabetes mellitus the products include 
byetta bydureon and symlin the alliance 
was the first to offer products in the three 
newest and fastest growing classes  
of diabetes treatments dpp4 sglt2  
and glp1
in december 2013 we announced an 
agreement to acquire the entirety of  
bms’s 50 interest in the companies’  
joint diabetes business this secured 
astrazeneca the ip rights and other assets 
for the development manufacture and 
commercialisation of these diabetes  
assets which include onglyza kombiglyze 
komboglyze forxigafarxiga xigduo 
byetta bydureon metreleptin and symlin 
the acquisition which completed in 
february 2014 consolidated worldwide 
ownership of the diabetes business within 
astrazeneca allowing us to maximise our 
primary and specialty care capabilities and 
geographical reach in this area especially  
in emerging markets approximately 3900 
employees will transfer with the acquisition 
of this business the transaction reinforces 
our longterm commitment to diabetes  
a key platform for returning astrazeneca  
to growth
forxiga dapagliflozin is a firstinclass 
sglt2 inhibitor it was approved in the  
eu in november 2012 and in the us  
where it is called farxiga in january  
2014 forxigafarxiga is intended to be 
used as an adjunct to diet and exercise in 
combination with other glucoselowering 
medicinal products including insulin or  
as a monotherapy forxigafarxiga is  
now approved in 40 countries with six 
others under regulatory review additional 
submissions are planned for 2014
xigduo dapagliflozin and metformin 
hydrochloride was approved in january 
2014 in the eu for adults aged 18 and  
over with type 2 diabetes mellitus as an 
adjunct to diet and exercise to improve 
glycaemic control it is indicated in patients 
inadequately controlled on their current 
54 astrazeneca annual report and form 20f information 2013
strategic report  therapy area review  cardiovascular and metabolic disease metforminbased treatment regimen  
or who are currently being treated with  
the combination of dapagliflozin and 
metformin as separate tablets an nda for 
dapagliflozin and metformin hydrochloride 
extended release fixeddose combination 
in a oncedaily tablet was submitted to the 
fda in the fourth quarter of 2013
metreleptin is an investigational agent  
for the treatment of metabolic disorders 
associated with inherited or acquired 
lipodystrophy ld a rare disease estimated 
to affect a few thousand people around  
the world the fda has accepted and 
granted a priority review designation for  
the biologics license application bla  
for metreleptin and assigned a february 
2014 review deadline in december 2013 
the endocrinologic and metabolic drugs 
advisory committee reviewed the bla  
for it and voted 11 to one that there is 
substantial evidence that the benefits of 
metreleptin outweigh the risks for the 
treatment of paediatric and adult patients 
with generalised ld the committee did  
not recommend metreleptin in patients  
with partial ld for the indication currently 
proposed by a vote of two to 10 we 
remain committed to pursuing metreleptin 
for treatment in patients with metabolic 
disorders associated with partial ld work 
is ongoing to make metreleptin available 
outside the us
in the pipeline 
we continue to develop the delivery 
systems for bydureon including a dual 
chamber pen that will reduce the number  
of steps required to mix its components  
a supplemental new drug application 
snda was submitted to the fda in the 
third quarter of 2013 and we are expecting 
a sixmonth review we filed for approval  
of the dual chamber pen in the eu in the 
fourth quarter of 2013
we are also developing a onceweekly 
suspension of bydureon recruitment  
is complete for the exenatide weekly 
suspension phase iii programme and  
the studies are ongoing 
in july 2013 astrazeneca and fibrogen 
announced they had entered into a 
strategic collaboration to develop and 
commercialise roxadustat fg4592 a 
firstinclass oral compound in latestage 
development for the treatment of anaemia 
associated with chronic kidney disease 
ckd and endstage renal disease esrd 
the collaboration focuses on the us  
china and all major markets excluding 
japan europe the cis the middle east 
and south africa which are covered by  
an existing agreement between fibrogen 
and astellas
in phase ii clinical studies roxadustat  
met its primary objective of demonstrating 
anaemia correction in treatmentnaïve  
ckd patients not on dialysis as well as  
of maintenance of haemoglobin levels and 
anaemia correction in patients on dialysis 
this efficacy was combined with an 
acceptable safety profile in clinical trials  
an extensive roxadustat phase iii 
development programme for the us is 
planned along with initial phase iii trials  
in china with anticipated regulatory filings 
in china in 2015 and in the us in 2017 
clinical studies 
with the completion of the savortimi 53 
saxagliptin assessment of vascular 
outcomes recorded in patients with type 2 
diabetes mellitus trial in september 2013 
onglyza is now among the most extensively 
studied antidiabetic medications the trial 
involving 16500 adult patients with type 2 
diabetes mellitus with a history of 
established cv disease or multiple risk 
factors was also designed to fulfil a 
postmarketing requirement for the fda
within its clinically relevant high cv risk 
population savor met the primary safety 
objective demonstrating no increased  
risk for the primary composite endpoint  
of cv death nonfatal mi or nonfatal 
ischaemic stroke when added to a 
patient’s current standard of care with or 
without other antidiabetic therapies as 
compared to placebo onglyza did not 
meet the primary efficacy endpoint of 
superiority to placebo for the same 
composite endpoint patients treated with 
onglyza experienced improved glycaemic 
control and reduced development and 
progression of microalbuminuria over two 
years as assessed in exploratory analyses 
the large size of savor also allowed us  
to evaluate a broad range of other data of 
interest overall adverse events serious 
adverse events and discontinuations  
were similar to placebo and the rates of 
pancreatitis and pancreatic cancer were 
low and balanced between onglyza and 
placebo the major secondary composite 
endpoint of cv death nonfatal mi 
nonfatal ischaemic stroke or hospitalisation 
for heart failure unstable angina or 
coronary revascularisation was balanced 
across the two arms one component of 
the composite secondary endpoint 
hospitalisation for heart failure occurred 
more in the onglyza group compared to 
placebo there was no increased rate of 
hypoglycemia among patients treated with 
onglyza compared to placebo when added 
to metformin monotherapy and higher rates 
of hypoglycemia only in the onglyza group 
compared to the placebo group among 
patients taking sulfonylureas agents known 
to cause hypoglycemia at baseline 
in april 2013 we initiated declare  
a large ongoing cv outcomes trial to 
understand the impact of forxiga on  
cv riskbenefit the trial is working to 
determine whether forxiga 10mg  
when added to a patient’s current 
antidiabetes therapy is effective in 
reducing cardiovascular events such  
as mi ischaemic stroke and cvrelated  
death compared with placebo the  
trial is a randomised doubleblind  
placebocontrolled trial designed to  
enrol approximately 17 000 patients 
enrolment began in april 2013 with an 
anticipated completion date in 2019 
the exscel exenatide study of 
cardiovascular event lowering study  
is designed to determine if there are 
favourable cv effects of exenatide 
treatment using bydureon the exscel 
study started in 2010 and is planned to  
run until 2017  the study has enrolled 
patients during 2013 and is designed  
for 9500 patients 
additional information financial statements corporate governance strategic report
55 astrazeneca annual report and form 20f information 2013 oncology
cancer is a leading cause of death worldwide and  
accounted for 82 million deaths in 2012 about 70  
of deaths occurred in low and middleincome countries
our strategic priorities
we aim to build on our position as one of 
the world leaders in cancer treatment with 
established brands such as zoladex and 
arimidex growing brands such as faslodex 
and iressa and the successful introduction 
of novel therapeutic approaches currently in 
development our future growth will come 
about by targeting the right treatments at 
the right patients using both small 
molecules and biologics and taking 
advantage of cuttingedge science and 
innovative technologies 
our oncology pipeline includes a range of 
novel compounds focused on several areas 
critical to the development and progression 
of cancer in particular we are developing 
potential new cancer drugs using a variety 
of biologics approaches directed towards 
molecular targets with a strong role in 
cancer progression these have the 
potential to eliminate cancer cells in more 
effective ways we are also focused on 
targeting the genetic drivers of cancer  
and the resistance mechanisms to current 
therapies using companion diagnostics to 
identify the right patients this strategy is 
driving the continued growth of iressa and 
the rapid development of azd9291 a third 
generation epidermal growth factor 
receptor egfr inhibitor which could have 
the potential to address the most common 
resistance mechanism to first generation 
inhibitors such as iressa
our emphasis on triggering cancer cell 
death builds on our work in dna damage 
response with our olaparib programme  
to complement our dna damage portfolio 
we completed our inlicensing of mk1775 
azd1775 from merck in september 2013 
azd1775 is a wee1 kinase inhibitor which 
inhibits a key cell cycle checkpoint and is in 
early clinical development
in addition we aim to be a key player in 
developing immunemediated cancer 
therapies imtcs a clinically validated 
  arimidex anastrozole is an aromatase 
inhibitor used for the treatment of breast 
cancer
  caprelsa vandetanib is a kinase inhibitor 
indicated for the treatment of symptomatic 
or progressive medullary thyroid cancer 
mtc in patients with unresectable 
nonoperable locally advanced or 
metastatic disease
  casodex bicalutamide is an antiandrogen 
therapy used for the treatment of prostate 
cancer
  faslodex fulvestrant is an injectable 
estrogen receptor antagonist used for  
the treatment of hormone receptor 
positive advanced breast cancer for 
postmenopausal women whose disease 
has progressed following treatment with 
prior endocrine therapy
  iressa gefitinib is an epidermal growth 
factor receptortyrosine kinase egfrtk 
inhibitor that acts to block signals for  
cancer cell growth and survival in advanced 
egfrtk mutationpositive egfr m 
nonsmall cell lung cancer 
  nolvadex tamoxifen citrate remains a 
widely used breast cancer treatment outside 
the us
  zoladex goserelin acetate implant in one 
and three month depots
1
 is a luteinising 
hormonereleasing hormone lhrh agonist 
used for the treatment of prostate cancer 
breast cancer and certain benign 
gynaecological disorders
our marketed products
 chemotherapy 246bn
 hormonal therapies 86bn
 monoclonal antibodies 21bn
 small molecule tkis 102bn
therapy area world market  
matq313
1
 depots are subcutaneous or intramuscular injections
644bn
wordwide market value
56 astrazeneca annual report and form 20f information 2013
strategic report  therapy area review therapeutic approach that may lead to 
durable and prolonged response rates 
across a range of tumour types imtcs 
harness the power of the patient’s own 
immune system to fight cancer we are 
building a comprehensive programme in 
this area with a robust pipeline for more 
information see the imtc case study  
on page 32
in october 2013 we acquired 
amplimmune a biologics company  
that develops novel therapeutics in  
cancer immunology and spirogen  
a biotechnology company specialising  
in antibodydrug conjugate technology  
for use in oncology we also entered into  
a collaboration agreement with adc 
therapeutics to jointly develop two of its 
antibodydrug conjugate programmes in 
preclinical development and made an 
equity investment in the company
we aim to be a leader in identifying and 
developing combination therapies to exploit 
scientific and biological synergies with our 
expertise across both small molecule and 
biologics research and development we 
believe we are well positioned to explore 
novel combination therapies leading to 
better outcomes for cancer patients 
our 2013 focus
despite generic competition arimidex 
remains a leading global hormonal therapy 
for patients with earlystage breast cancer 
this success is largely based on the 
extensive longterm efficacy and safety 
results of the atac study which showed 
arimidex to be significantly superior to 
tamoxifen at preventing breast cancer 
recurrence during and beyond the fiveyear 
treatment course 
zoladex is approved in more than 120 
countries for the treatment of prostate 
cancer breast cancer and certain benign 
gynaecological disorders in nonmetastatic 
prostate cancer zoladex has been shown 
to improve overall survival both when used 
in addition to radical prostatectomy and to 
radiotherapy in breast cancer zoladex  
is widely approved for use in advanced 
breast cancer in premenopausal women 
in a number of countries zoladex is also 
approved for the adjuvant treatment of 
earlystage premenopausal breast cancer 
as an alternative to andor in addition to 
chemotherapy zoladex offers proven 
survival benefits for breast cancer patients 
with a favourable tolerability profile
casodex is used as a 50mg tablet for the 
treatment of advanced prostate cancer  
and as a 150mg tablet for the treatment  
of locally advanced prostate cancer it is 
subject to competition from generics
iressa was the first egfrtk inhibitor  
to be approved in advanced nonsmall  
cell lung cancer and is approved in 89 
countries iressa is the leading egfrtk 
inhibitor for patients with egfr m 
advanced nonsmall cell lung cancer in the 
european and asian markets iressa is 
currently not approved in the us egfr 
mutations can be identified by a number  
of diagnostic tests
faslodex 500mg is approved in 75 
countries including the eu member states 
the us and japan it offers an additional 
efficacious hormonal therapy option and  
is given by once monthly injections we are 
now exploring the efficacy and safety of 
faslodex 500mg compared to arimidex in 
the 1
st
 line advanced breast cancer setting 
hormonenaïve patients in the phase iii 
falcon trial
caprelsa fights cancer through two proven 
mechanisms by blocking the development 
of tumour blood supply by inhibiting the 
vascular endothelial growth factor pathway 
and by inhibiting the growth and survival of 
the tumour through egfr and rearranged 
during transfection ret pathways 
caprelsa was approved by the fda and 
granted orphan drug status in april 2011 
and by the eu in february 2012 for the 
treatment of medullary thyroid cancer in 
patients with unresectable locally advanced 
or metastatic disease caprelsa is also 
approved in canada and remains under 
review by other regulatory agencies around 
the world
in the pipeline 
in 2013 we advanced three compounds 
into phase iii clinical trials olaparib a poly 
adpribose polymerase parp inhibitor  
is currently in phase iii trials for 1
st
 line and 
platinumsensitive relapsed brca mutated 
ovarian cancer and 2
nd
 line gastric cancer 
additionally in september 2013 the ema 
accepted a maa for olaparib capsules  
for the maintenance treatment of patients 
with brca mutated platinumsensitive 
relapsed serous ovarian cancer selumetinib 
a potent mitogenactivated protein  
kinase mek inhibitor licensed from  
array biopharma inc is being studied in  
a phase iii trial in kras mutationpositive 
advanced nonsmall cell lung cancer 
moxetumomab pasudotox a cd22 
immunoconjugate is being studied in a 
phase iii trial in unresponsive or relapsed 
hairy cell leukaemia
our oncology research pipeline targets 
both solid tumour and hematologic 
cancers across our small molecule  
and biologics portfolio we have three 
investigational compounds in phase iii 
clinical trials six in phase ii clinical trials 
and 15 projects in phase i clinical trials 
additional drug candidates are expected  
to progress into clinical trials in 2014 
for more information on our oncology 
pipeline see the research and early clinical 
development section on page 36
14 million
it is expected that annual cancer cases  
will rise from 14 million to an estimated  
22 million within the next two decades
source who factsheet 2014 data from 2012
additional information financial statements corporate governance strategic report
57 astrazeneca annual report and form 20f information 2013 respiratory inflammation  
and autoimmunity
some 235 million people suffer from asthma  
with most asthmarelated deaths in low and  
lowermiddle income countries
our strategic priorities
we aim to build on our strong position in 
the respiratory area by delivering innovative 
inhaled and targeted therapies that address 
the evolving unmet medical needs of 
patients with asthma copd and idiopathic 
pulmonary fibrosis ipf
in the inflammation and autoimmunity 
therapy areas we intend to help improve 
the lives of patients by developing a 
rheumatology franchise establishing a 
foothold through our latestage programme 
in gout and employing a more opportunity
driven approach to dermatology
in addition to novel targeted therapies 
our respiratory strategy involves developing 
unique inhaled therapies 
we are also looking at ways to transform 
how respiratory diseases are managed 
we believe a better understanding of 
biology patient phenotypes and new drug 
combinations will help improve clinical 
outcomes for patients
asthma and copd 
asthma is a major cause of chronic 
morbidity and mortality there is evidence 
that it has become much more common 
over the past 20 years the number  
of patients whose asthma is not well 
controlled by current approved treatments 
remains a particular unmet medical need
currently fixeddose combinations of 
an inhaled corticosteroid ics with a 
longacting beta 2agonist laba for 
example symbicort help treat moderate 
to severe asthma however our rd efforts 
focus on targeted therapies to treat more 
severe refractory patients who experience 
severe or frequent exacerbations and a 
reduced quality of life additionally the 
population of asthma patients is highly 
heterogeneous and we are working to 
better understand patient subtypes and to 
tailor therapies to the different phenotypes 
please see the case study on page 64 
for more information
  accolate zafirlukast is an oral leukotriene 
receptor antagonist used for the treatment  
of asthma
  bricanyl turbuhaler terbutaline in a dry 
powder inhaler is a shortacting beta 2
agonist used for the acute treatment of 
bronchialobstructive symptoms in asthma 
and copd
  oxis turbuhaler formoterol in a dry 
powder inhaler is a fast onset longacting 
beta 2agonist used for the treatment of 
bronchialobstructive symptoms in asthma 
and copd
  pulmicort turbuhaler budesonide in a dry 
powder inhaler is an inhaled corticosteroid 
used for maintenance treatment of asthma 
  pulmicort respules budesonide inhalation 
suspension is a corticosteroid administered 
via a nebuliser for the treatment of asthma in 
both children and adults
  rhinocort budesonide is a nasal steroid 
used as a treatment for allergic rhinitis hay 
fever perennial rhinitis and nasal polyps
  symbicort pmdi budesonideformoterol  
in a pressurised metereddose inhaler is 
a combination of an inhaled corticosteroid 
and a fast onset longacting beta 2agonist 
used for maintenance treatment of asthma 
and copd including chronic bronchitis 
and emphysema in the us australia and  
in a number of other markets
  symbicort turbuhaler budesonide
formoterol in a dry powder inhaler is a 
combination of an inhaled corticosteroid and 
a fast onset longacting beta 2agonist used 
for maintenance treatment of asthma and 
copd in asthma it is also approved for 
symbicort maintenance and reliever 
therapy symbicort smart symbicort 
turbuhaler is used in most parts of the 
world outside the us
our marketed products
respiratory
 asthma 22bn
 copd 144bn
 idiopathic pulmonary fibrosis ipf 01bn
 other 254bn
therapy area world market  
matq313
inflammation and autoimmunity
 gout 137bn
 psoriasis 02bn
 psoriatic arthritis 09bn
  systemic lupus erythematosus  
sle 05bn
 rheumatoid arthritis 186bn
958bn
wordwide market value 
58 astrazeneca annual report and form 20f information 2013
strategic report  therapy area review copd is a serious lung disease that 
includes chronic bronchitis andor 
emphysema medication only has a small 
impact on the course of the disease and 
the prognosis for patients remains poor
the goal of copd treatment is to  
slow disease progression and control 
symptoms deterioration of lung function 
over time usually requires more aggressive 
treatment including introducing additional 
inhaled treatments in an attempt to  
manage symptoms better a new class of 
fixeddose combinations of a longacting 
muscarinic antagonist lama and a  
laba are being developed for copd  
and are likely to be positioned as 1
st
 line 
therapy for symptomatic mild to moderate 
copd patients who need effective 
bronchodilatation and are at lower risk of 
exacerbations with the acquisition of pearl 
therapeutics in june 2013 astrazeneca 
added a lamalaba combination to its 
pipeline icslaba combinations including 
symbicort are best suited for copd 
patients with exacerbations according to 
recently updated guidelines from the global 
initiative for chronic obstructive lung 
disease gold the gold guidelines 
encourage triple therapy of lamalaba
ics when symptoms persist despite 
treatment with an icslaba formulation 
and device technology acquired from pearl 
therapeutics will also allow us to develop a 
triple fixeddose combination in one device 
which we plan to accelerate into phase ii 
clinical development in 2014
our 2013 focus 
the range of symbicort products  
improves symptoms and provides a 
clinically important improvement in the 
health of many patients with asthma or 
copd by providing effective and rapid 
control of the symptoms with a longterm 
maintenance effect
pulmicort is one of the world’s leading 
ics products for treating asthma and is 
available in several forms such as respules 
teva has had an exclusive licence to sell a 
generic version of pulmicort respules in the 
us since 2009 pulmicort continues to face 
increasing challenge from generic products 
more information about litigation relating to 
pulmicort can be found in note 25 to the 
financial statements from page 176
in the pipeline 
as outlined above the acquisition of pearl 
therapeutics has added a lamalaba 
combination to our phase iii pipeline and  
a faster route to developing a triple therapy 
pt003 is being developed as a twicedaily 
fixeddose combination of components  
that are already approved and marketed  
in various formulations in many parts of  
the world – the lama glycopyrronium  
and laba formoterol a component of 
symbicort it is the only lamalaba being 
developed in a pressurised metereddose 
inhaler pmdi the most widely used 
inhalation delivery format phase iii trials 
began in may 2013 pt010 is a triple 
combination of lamalabaics given 
twicedaily from a pmdi device being 
developed for severe copd it is currently 
in phase i and has the potential to be 
among the first products to deliver the three 
separate therapeutic entities via one inhaler
benralizumab is a mab directed at the 
interleukin5 receptor il 5r and depletes 
eosinophils in the lung immune cells that 
have been shown to play an important  
role in asthma we have accelerated the 
initiation of the phase iii asthma programme 
and in october 2013 we initiated calima 
the first of five studies in the phase iii  
clinical development programme for 
benralizumab the calima study aims  
to determine whether benralizumab 
reduces the number of exacerbations in 
patients with severe asthma and elevated 
eosinophils who remain inadequately 
controlled despite treatment with inhaled 
andor oral corticosteroids 
other therapies in development for severe 
asthma include the biologic tralokinumab 
and the small molecule azd5069 
tralokinumab is a human antibody targeting 
il 13 a key cytokine involved in many 
aspects of asthma tralokinumab has 
completed phase ii studies in inadequately 
controlled asthma and is also currently in 
phase ii development for the treatment of 
mild to moderate ipf azd5069 is a cxcr2 
antagonist in phase ii development for 
asthma cxcr2 inhibition prevents the 
recruitment and activation of neutrophils  
a cell type thought to play a central role in 
asthma and copd 
inflammation and 
autoimmunity
gout is the most common form of 
inflammatory arthritis it occurs when  
high levels of uric acid in the blood known 
as hyperuricaemia lead to deposition of 
needlelike crystals in joints and soft tissues 
throughout the body causing inflammation 
hyperuricaemia results when the kidneys  
do not efficiently remove enough uric acid 
or when the body produces too much in 
2013 there were an estimated 153 million 
diagnosed cases of gout in major markets 
which include the us canada france 
germany italy spain the uk and japan 
this is forecast to increase to 17 7 million  
in 2021 
psoriasis is a chronic disease in which the 
immune system causes the skin cells to 
grow at an accelerated rate instead of 
being shed the skin cells pile up causing 
painful and itchy red scaly patches that 
can bleed up to 12 million patients are 
diagnosed with psoriasis across the us 
and europe each year despite various 
treatment options for moderate to severe 
plaque psoriasis many patients do not 
meet their therapeutic goals including the 
resolution of underlying inflammation 
clearing of symptoms and improvement  
64 million
an estimated 64 million people suffer 
from copd with more than 3 million 
people dying each year almost 90 
of copd deaths occur in low and  
middleincome countries
total deaths from copd are projected  
to increase by more than 30 in the  
next 10 years without interventions 
to cut risks
source who factsheets 2013 copd data from  
2004 and 2005
additional information financial statements corporate governance strategic report
59 astrazeneca annual report and form 20f information 2013 in quality of life biologics are currently used 
in moderate to severe cases where patients 
are candidates for or are unresponsive to 
phototherapy or systemic therapy 
current treatment of systemic lupus 
erythematosus sle focuses on 
suppressing symptoms and controlling 
disease flares and in the case of lupus 
nephritis preventing renal failure although 
a biologic medicine has recently been 
launched for sle most therapies used  
are offlabel and there remains significant 
unmet medical need most emerging 
biologic agents are likely to be used initially 
after failure of standard therapies including 
corticosteroids and immunosuppressants 
or in combination to provide incremental 
benefit prevent flares and allow reduction 
of highdose chronic steroid use
rheumatoid arthritis is currently treated with 
generic diseasemodifying antirheumatic 
agents and where the relevant criteria are 
met biologic disease modifiers novel 
effective treatments are needed as only 
about a third of patients treated with 
biologics achieve their treatment goals  
we anticipate that the rheumatoid arthritis 
market will experience modest annual 
growth over the next decade sales of  
the biologic tumour necrosis factor tnf 
alphablockers accounted for 72 of  
major market rheumatoid arthritis sales in 
2012 use of other biologic approaches is 
expected to increase due to new entrants 
new subcutaneous formulations and use 
earlier in the treatment pathway novel  
oral drugs targeting intracellular signalling 
pathways may provide antitnflike levels 
of efficacy and potentially more convenient 
dosing especially in patients who are not 
taking or are ineligible to take injectable 
biologic agents
in the pipeline 
in 2012 astrazeneca acquired ardea  
a san diegobased company ardea is 
developing lesinurad a selective uric acid 
reabsorption inhibitor suri that inhibits 
the urat1 transporter normalising uric 
acid excretion and reducing serum uric  
acid sua 
in december 2013 we announced topline 
results from light a phase iii study 
investigating the potential of lesinurad as a 
monotherapy in the small population of 
gout patients who are intolerant to or 
cannot take one or both xanthine oxidase 
inhibitors allopurinol and febuxostat in the 
trial lesinurad used as a monotherapy met 
the primary endpoint however patients in 
the study were more likely to experience 
serum creatinine elevations and renal 
adverse events including serious events 
compared to patients on placebo
the main phase iii trials in the lesinurad 
programme are investigating lesinurad in 
combination with allopurinol in patients not 
reaching target sua levels on allopurinol 
alone clear1 and clear2 and as a 
combination therapy with febuxostat in 
patients with tophaceous gout crystal 
we believe that combination therapy 
addressing both production xanthine 
oxidase inhibitors and excretion lesinurad 
of uric acid may be an effective way to  
treat gout patients who have not achieved 
target sua levels on xanthine oxidase 
inhibitors alone the results of the lesinurad 
combination therapy studies are expected 
in mid2014 and regulatory submissions in 
the us and eu are expected in the second 
half of 2014
in august 2013 we decided to progress 
rdea3170 as our lead gout molecule  
in asia including japan and china 
rdea3170 is a next generation suri and 
we have begun a programme of work to 
support submission in japan and other 
asian markets in preclinical and phase i 
clinical studies rdea3170 showed many  
of the same attributes as lesinurad but with 
significantly greater potency against the 
urat1 transporter it is being investigated 
as a potentially differentiated molecule that 
could be used earlier in the treatment of 
gout and in asymptomatic hyperuricaemia 
phase i studies in japan are complete and 
a phase ii study will begin in early 2014  
in addition a global phase ii monotherapy 
programme for rdea3170 began in august 
2013 and has completed recruitment ahead 
of schedule
in october 2013 together with amgen  
we announced the initiation of the phase iii 
programme for brodalumab in moderate  
to severe psoriasis the programme 
includes three phase iii studies evaluating 
treatment with brodalumab compared with 
ustekinumab andor placebo brodalumab 
is a human mab targeting the interleukin17 
il 17 receptor to treat moderate to severe 
psoriasis the phase ii data showed that 
the primary and secondary end points  
were met including many patients 
achieving and maintaining total skin 
clearance with continued brodalumab 
therapy brodalumab is also being 
investigated in phase ii studies for psoriatic 
arthritis and asthma brodalumab amg 827 
is one of five mabs from amgen’s clinical 
inflammation portfolio which the two 
companies have agreed to develop and 
commercialise jointly the other four 
compounds are amg 139 amg 157   
amg 181 and amg 557 
in 2013 we continued to invest in several 
novel multifunctional mabs in inflammatory 
and autoimmune conditions sifalimumab 
which targets interferonalpha continued 
clinical development with a phase iib study 
in patients with sle medi546 which 
targets the interferonalpha receptor 
continued in a phase iib study in patients 
with sle mavrilimumab which targets  
the alpha subunit of the granulocyte
macrophage colonystimulating factor 
receptor gmcsfr continues in phase iib 
for patients with rheumatoid arthritis and 
has completed enrolment
the results of the phase iii oskira 
programme for fostamatinib an oral spleen 
tyrosine kinase inhibitor in development as 
a treatment for rheumatoid arthritis did not 
measure up to the promising results seen 
earlier in development therefore in june 
2013 astrazeneca decided not to proceed 
with regulatory filings for fostamatinib and 
returned the rights to the compound to 
rigel pharmaceuticals
 
60 astrazeneca annual report and form 20f information 2013
strategic report  therapy area review  respiratory inflammation and autoimmunity infection neuroscience  
and gastrointestinal 
astrazeneca has a long history in the fields of infection neuroscience and gastrointestinal ing diseases 
which represent a high area of unmet medical need for patients around the world previously managed as 
three separate therapy areas in march 2013 we combined them into one area and are investing in them 
opportunistically we are developing or commercialising innovative therapies and are also seeking to 
optimise the potential of our existing medicines we seek to maximise the access all patients have to our 
therapies using innovative approaches in emerging and established markets
by making effective use of our structural 
and genomicbased discovery technologies 
and antibody platforms vaccines and 
continued small molecule and biologics 
research we plan to deliver novel approaches 
in areas of unmet medical need
influenza virus
influenza is the most common vaccine
preventable disease in the developed 
world according to who seasonal 
influenza results in three to five million  
cases of severe illness and up to half a 
million deaths each year primarily among 
the elderly rates of infection are however 
highest among children and schoolage 
children are the main transmitters of the 
flu virus vaccinating children can lower the 
burden of influenza both through direct 
immune protection and through blocking 
transmission or ‘herd immunity’ the laiv 
live attenuated influenza vaccine which 
we developed is recognised as the most 
effective paediatric influenza vaccine with 
studies showing a 50 superior efficacy 
over tiv trivalent influenza vaccine which 
is the standard of care recently published 
health economy models also show that 
vaccinating children with laiv could  
be the most costeffective influenza  
policy strategy 
the latest development in our influenza 
vaccines is the quadrivalent vaccine 
containing one additional bvirus strain  
for broader protection the who rationale 
for adding another bvirus strain into the 
vaccine is to reduce the risk of mismatch 
between the circulating virus strains and 
the annual vaccine which in turn could 
offer better overall protection the 
intranasal flumist quadrivalent laiv was 
the first quadrivalent vaccine to be 
approved globally by the fda in february 
our strategic priorities
infectious diseases are the second leading 
cause of death worldwide after heart 
disease we have one of the industry’s 
largest antibacterial pipelines and a 
leading position in the area of respiratory 
viruses based on this strong foundation 
we aim to bring innovative lifechanging 
treatments to market and help patients 
avoid the consequences of infections  
2012 in 2013 flumist quadrivalent was 
supplied to the us and israel markets and 
successfully replaced the trivalent flumist
in december 2013 the ec granted 
marketing authorisation for fluenz tetra 
equivalent to flumist quadrivalent for the 
prevention of seasonal influenza in eligible 
children and adolescents aged from two 
to 18 years fluenz tetra is the first and 
only intranasal fourstrain influenza 
vaccine available in europe fluenz tetra 
will replace fluenz from the 20142015 flu 
season onwards 
paediatric influenza prevention and laiv 
superiority over tiv was recognised in  
two major eu public programmes during 
2013 in august 2013 the german 
standing committee on vaccinations 
stiko recommended the use of laiv  
in children aged two to six years with 
underlying medical conditions as the 
preferred influenza vaccine fluenz is the 
only available laiv against seasonal 
influenza in germany and this is the first 
time that a single vaccine has received 
preferential recommendation by stiko  
in september 2013 immunisation with 
fluenz was rolled out in the uk following  
a 2012 decision by the joint committee  
of vaccination and immunisation the 
rollout is the first step in implementing the 
new nationwide paediatric flu vaccination 
programme which is expected to ultimately 
include all children from two to 16 years 
respiratory syncytial virus rsv 
approximately half of all infants worldwide 
are infected with rsv during the first year  
of life and nearly all children in the us 
have been infected by the time they reach 
their second birthday rsv is the leading 
cause of hospitalisations and admissions 
to paediatric intensive care units in the first 
year of life 
1
 licensed from cubist pharmaceuticals inc
2
  licensed from dainippon sumitomo pharmaceuticals co 
limited 
3
 licensed from forest
infection
our marketed products
respiratory syncytial virus rsv
  synagis palivizumab is a humanised 
mab used for the prevention of serious 
lower respiratory tract disease caused 
by rsv in paediatric patients at high 
risk of acquiring rsv disease
serious bacterial infections
  cubicin
1
 daptomycin is a cyclic 
lipopeptide antibacterial used for  
the treatment of serious infections  
in hospitalised patients
  merremmeronem
2
 meropenem  
is a carbapenem antibacterial used for 
the treatment of serious infections in 
hospitalised patients
  zinforo
3
 ceftaroline fosamil is a novel 
injectable cephalosporin used in 
communityacquired pneumonia cap 
and complicated skin and soft tissue 
infections cssti
influenza virus
  flumistfluenz influenza vaccine  
live intranasal is an intranasal live 
attenuated trivalent influenza vaccine
  flumist quadrivalentfluenz tetra 
influenza vaccine live intranasal is  
an intranasal live attenuated 
quadrivalent influenza vaccine
additional information financial statements corporate governance strategic report
61 astrazeneca annual report and form 20f information 2013 synagis is used for the prevention of 
serious lower respiratory tract disease 
caused by rsv in children at high risk of  
the disease with approval in 83 countries 
we continue to work with our worldwide 
partner abbvie to protect vulnerable infants 
from rsv synagis is currently the only mab 
approved for the immunoprophylaxis of 
rsv and is the global standard of care for 
rsv prevention 
we are developing a live intranasal vaccine 
for the prevention of lower respiratory tract 
illness caused by rsv in otherwise healthy 
infants the lead vaccine candidate in 
clinical development is in phase i
serious bacterial infections 
antibiotic or antimicrobial resistance amr 
has been recognised as one of the greatest 
threats to human health by world leaders 
and has recently taken a high position  
on the global health agenda as a result 
world demand for antibiotics and novel 
therapeutic approaches remains high  
and will continue to grow many bacterial 
infections currently have few satisfactory 
treatment options prompting demand for 
new and better therapies 
zinforo developed in collaboration with  
our partner forest is one of the latest 
antibiotics authorised in europe zinforo  
is the first antibiotic to be approved by the 
fda since the introduction of the infectious 
diseases society of america’s ‘10 x 20’ 
initiative and is one of only a handful of new 
antibiotics to have been approved by the 
ema and fda in the last five years zinforo 
is indicated for use as a monotherapy in the 
treatment of hospitalised adult patients with 
complicated skin and soft tissue infections 
cssti or communityacquired pneumonia 
it is the only cephalosporin with methicillin
resistant staphylococcus aureus mrsa 
efficacy that is approved for the treatment 
of cssti
merremmeronem remains the leading 
carbapenem antibacterial and is approved 
in most countries outside japan although  
it is subject to competition from generics  
in most major markets it has a growing 
share of the intravenous antibiotic market 
because of its activity against multiple drug 
resistant bacteria
our antibacterials portfolio is targeting the 
most serious indications and pathogens we 
continue to work with forest on joint global 
development programmes exploiting the full 
potential of avibactam including caz avi a 
combination of ceftazidime and avibactam 
cxl a combination of ceftaroline and 
avibactam and atm avi a combination of 
aztreonam and avibactam we are also 
developing therapies independent of our 
collaboration with forest 
our strategic priorities
in the neuroscience area we have a  
long history in anaesthesia and analgesia 
plus a sizeable business in psychiatry 
rooted in seroquel ir and seroquel xr  
we are now focused on developing new 
drug candidates primarily in alzheimer’s 
and parkinson’s diseases and pain control  
that have the potential to offer therapeutic 
advantages
while rapid progress is being made in 
understanding diseases of the brain some 
of these debilitating illnesses have few 
effective treatments and for others there 
continues to be major unmet medical need 
in response to this challenge astrazeneca 
created a neuroscience imed in 2012 a 
team of approximately 40 scientists based 
in cambridge massachusetts us and 
cambridge uk two locations strongly 
associated with neuroscience research 
the neuroscience imed conducts 
discovery and development externally 
through a network of partners in academia 
and industry it is designed to merge 
scientific advances within the biotechnology 
and academic worlds and to develop their 
potential through the scientific commercial 
and geographical reach of astrazeneca
neurology 
alzheimer’s disease remains one of the 
largest areas of unmet medical need 
product development in this therapy area  
is particularly difficult due in part to the 
challenges of establishing efficacy in clinical 
studies current treatments most of which 
face patent expiry by 2015 target the 
symptoms not the underlying cause  
of the disease slowing the course of 
disease progression through biologics 
andor small molecule treatments is the 
hope for alzheimer’s disease patients and 
for people with other neurodegenerative 
disorders such as parkinson’s disease
we have initiated multiple collaborations  
to help advance disease understanding 
and identify potential new drug targets  
in alzheimer’s disease we are working  
with the karolinska institutet sweden  
the banner alzheimer’s institute us the 
national institute of radiological sciences 
japan vanderbilt university us and  
an alliance of several academic centres 
known as ‘a5’ a new threeyear 
collaboration with tufts university us 
targets a range of diseases and disorders 
of the brain including alzheimer’s disease 
parkinson’s disease and autism spectrum 
disorders our collaboration with vanderbilt 
university focuses on psychosis and other 
neuropsychiatric symptoms associated with 
major brain diseases such as alzheimer’s 
disease and schizophrenia 
azd3241 is in phase ii of development  
and is a myeloperoxidase mpo inhibitor  
in development to delay progression of 
disability in patients with idiopathic parkinson’s 
disease or multiple system atrophy
neuroscience
our marketed products
psychiatry
  seroquel ir an immediate release 
formulation of quetiapine fumarate  
is an atypical antipsychotic generally 
approved for the treatment of 
schizophrenia and bipolar disorder 
mania depression and maintenance 
  seroquel xr an extended release 
formulation of quetiapine fumarate is 
generally approved for the treatment  
of schizophrenia bipolar disorder major 
depressive disorder mdd and on  
a more limited basis for generalised 
anxiety disorder gad 
analgesia and anaesthesia
  diprivan propofol is an intravenous 
general anaesthetic used in the 
induction and maintenance of general 
anaesthesia intensive care sedation 
and conscious sedation for surgical  
and diagnostic procedures
  emla lidocaine and prilocaine is a 
local anaesthetic for topical application 
cream and patch to prevent pain 
associated with injections and minor 
surgical procedures and to facilitate 
cleansingdebridement of leg ulcers
  naropin ropivacaine is a longacting 
local anaesthetic for surgical 
anaesthesia and acute pain 
management 
  vimovo
1
 naproxenesomeprazole 
magnesium is generally approved for 
symptomatic relief in the treatment of 
rheumatoid arthritis osteoarthritis and 
ankylosing spondylitis in patients at risk 
of developing nsaidassociated gastric 
andor duodenal ulcers 
  xylocaine lidocaine is a shortacting 
local anaesthetic for topical and 
regional anaesthesia
  zomig zolmitriptan is used for the 
acute treatment of migraine plus for  
the acute treatment of cluster headache 
in the eu zomig is available in three 
formulations oral tablet orally 
dispersible tablet and nasal spray
1
 licensed from pozen
62 astrazeneca annual report and form 20f information 2013
strategic report  therapy area review  infection neuroscience and gastrointestinal azd3293 is in phase i of development  
and is a betasite amyloid precursor protein 
cleaving enzyme bace inhibitor in 
development to slow the course of disease 
progression of alzheimer’s disease
psychiatry 
more than 450 million people worldwide  
are affected by mental neurological or 
behavioural health problems and more 
than 350 million people suffer from 
depression yet psychiatric illnesses remain 
underdiagnosed and undertreated 
conditions with a substantial social and 
economic burden 
both seroquel ir quetiapine fumarate 
launched in 1997  and seroquel xr 
quetiapine fumarate extended release 
launched in 2007  have been important 
treatment choices for millions of patients 
worldwide seroquel xr remains a key 
product in most markets the substance 
patent protecting the active ingredient 
quetiapine expired in march 2012 
however in the majority of european 
markets the formulation patent covering 
seroquel xr does not expire until 2017  
while we remain confident in our ip and  
are committed to vigorously defending the 
patent protecting seroquel xr it has been 
subject to a number of challenges and 
revocations details of litigation relating to 
seroquel xr are included in note 25 to the 
financial statements from page 176 
analgesia and anaesthesia
our established anaesthesia portfolio 
consists of a broad range of compounds 
including an intravenous general 
anaestheticsedative and local anaesthetics 
available in various formulations such as 
injectables creams gels sprays and 
suppositories although these compounds 
were developed between 20 and 65 years 
ago and most no longer benefit from  
patent protection they remain important 
medicines that meet a broad range of 
patient needs and continue to deliver 
significant value 
opioids are the current standard of care  
for managing moderate to severe pain in 
many countries in the five countries that 
represent approximately 80 of global 
opioid use us uk france germany and 
canada 45 million patients take them to 
manage chronic pain biologics are an 
emerging treatment option for pain control 
and we have an active interest in this area 
we are exploring treatments in focused 
pain areas where patients can be selected 
on the basis of symptomatic characteristics 
vimovo 3752050020mg codeveloped 
by astrazeneca and pozen is a fixeddose 
combination of entericcoated naproxen  
an nsaid and immediaterelease 
esomeprazole a stomach acidreducing 
proton pump inhibitor ppi during  
2013 we reviewed the investment to 
commercialise vimovo around the world 
given the significant market access and 
reimbursement challenges that affected the 
product’s overall performance we decided 
to continue to market vimovo in those 
markets where we believe it would be most 
responsive to commercial efforts such  
as canada and a number of countries  
in emerging markets we ceased sales 
promotion of vimovo in the us and all 
promotion in the majority of europe  
except spain and portugal from the 
second quarter of 2013 however we 
continue to make the product available  
to patients in the eu in november 2013  
we announced an agreement for horizon 
pharma to acquire all us rights of vimovo 
we retained the right to commercialise 
vimovo in the rest of the world 
naloxegol formerly nktr118 licensed 
from nektar therapeutics is an 
investigational peripherallyacting muopioid 
receptor antagonist pamora which has 
been studied in opioidinduced constipation 
oic in adult patients with chronic 
noncancer pain the most common side 
effect caused by chronic administration  
of prescription opioid pain medicines  
over 69 million people worldwide take 
opioids to help deal with chronic pain oic 
can affect up to 90 of these patients with 
only 4050 achieving desired treatment 
outcomes with current options such as 
otc and prescription laxatives if approved 
naloxegol will be an important new 
treatment option for patients struggling  
with oic and has the potential to be the  
first oncedaily oral pamora medication  
to treat the condition following topline 
results from two phase iii trials and one 
safety extension trial in patients with 
noncancer related pain and oic an nda 
and an maa for naloxegol have been 
accepted by the fda and ema respectively 
additional analyses and regulatory 
consultations are ongoing
azd5213 is in phase ii and is a histamine3 
receptor antagonist in development for 
neuropathic pain
our strategic priorities
nexium is marketed in more than 125 
countries and is available in oral tablet 
capsule and sachet for oral suspension 
and intravenous dosage forms for the 
treatment of acidrelated diseases nexium 
is also approved for use in children from the 
age of one month in the us and from one 
year in europe and other markets nexium 
capsules were launched in japan in 
september 2011 after a national 
development programme 
we aim to maximise the benefits for 
patients of our current gastrointestinal 
portfolio by focusing investment on  
nexium in japan and emerging markets 
including china 
nexium is generally subject to competition 
from generics in europe and we expect  
the first generic entry in the us in 2014 
patents protecting nexium have been 
subject to a number of challenges in different 
jurisdictions and details of these matters  
are included in note 25 to the financial 
statements from page 176 this includes 
consideration of hanmi’s us launch of its 
505b2 nda esomeprazole strontium 
product astrazeneca understands that  
this product is not abrated and is not 
automatically a substitute for nexium
in 2012 pfizer acquired the exclusive  
global rights to market nexium for otc 
indications worldwide the nda submission 
for nexium otc in the us was completed 
in mid 2013 in august 2013 the ec 
approved nexium control the marketed 
name for otc nexium in europe the 
commercial launch for otc nexium 20mg 
in the us and europe is planned for 2014 
subject to regulatory approval
gastrointestinal
our marketed products
  entocort budesonide is a locally 
acting corticosteroid used for the 
treatment of inflammatory bowel 
disease
  losecprilosec omeprazole is used 
for the short and longterm treatment 
of acidrelated diseases
  nexium esomeprazole magnesium is 
the first proton pump inhibitor ppi 
used for the treatment of acidrelated 
diseases to offer clinical improvements 
over other ppis and other treatments
additional information financial statements corporate governance strategic report
63 astrazeneca annual report and form 20f information 2013 helping people  
breathe easier
personalised asthma treatments 
real lives
the large number of patients whose 
respiratory disease is inadequately 
controlled by current treatments 
means there is a significant unmet 
medical need for improved treatments 
one patient aged 50 and prescribed 
accolate said “having asthma is so 
frightening it affects everything that 
you do i limit my life to a certain extent 
asthma is so unpredictable”
lifechanging medicines
asthma and chronic obstructive pulmonary 
disease copd are respiratory diseases caused 
by chronic inflammation that affect millions of lives 
in the g7 markets alone there are more than 100 million patients with asthma or copd 
worldwide total deaths from copd are projected to increase by more than 30 in the next  
10 years without further interventions to cut risks to health
in recent years we have introduced medicines such as symbicort and pulmicort for the 
treatment of respiratory diseases by developing innovative inhaled and targeted therapies  
as well as new devices to meet the needs of patients we continue to advance respiratory 
medicine and provide relief support and improved health in the easiest way possible
64 astrazeneca annual report and form 20f information 2013
strategic report  pioneering science lifechanging medicines 235 million
 
some 235 million people suffer  
from asthma
64 million 
an estimated 64 million people  
had copd in 2004
pioneering science
diseases such as asthma and copd  
are increasingly being recognised as  
a heterogeneous group of conditions 
they have closely related clinical features 
but diverse underlying causes pioneering 
science is allowing us to break them down 
into meaningful subgroups to enable  
a more targeted approach to treatment 
we are using personalised healthcare 
phc strategies early in the drug 
development process to target distinct 
asthma molecular phenotypes to optimise 
treatments one example of this is 
benralizumab where we are targeting 
patients in our phase iii programme with  
a distinct severe asthma phenotype 
benralizumab is the first in a series of  
novel phcdriven biologic therapies  
in our portfolio that may represent  
a critical advance in the development  
of personalised asthma management
we are also developing a number of small 
molecule projects in the respiratory therapy 
area for example azd5069 which is in 
phase ii trials aims to help uncontrolled 
persistent asthma patients by targeting 
neutrophils a type of white blood cell
see the research and development section from page 36  
and the respiratory inflammation and autoimmunity section  
in the therapy area review from page 58 for more information
 who data
additional information financial statements corporate governance strategic report
65 astrazeneca annual report and form 20f information 2013 “ a flatter organisational 
structure is driving 
accountability and improving 
decision making among 
employees while our culture 
jam and pulse survey results 
demonstrated the level of 
engagement our employees 
have with our purpose and 
strategic ambition” 
  c a r ol i n e h e m p s te a d  
interim evp  hr  corporate affairs 
employees
our ambition is to be a great place  
to work by maximising the potential  
of a talented and diverse workforce
we value the talents skills and capabilities 
that our global workforce of around 51500 
people in more than 100 countries brings  
to our business our people strategy which 
seeks to support astrazeneca’s overall 
goals and ambition to be a great place  
to work is built around a number of key 
areas these include
  acquiring and retaining key capabilities 
and talent
  developing leadership
  evolving our culture
  implementing a new set of values and 
behaviours 
another aim is to improve the strength  
and diversity of the talent pipeline and  
by driving belief in our strategic priorities  
to help build employee engagement 
astrazeneca’s leaders also direct 
considerable attention to managing change 
in our global team see the managing 
change section on page 69 we use a 
range of metrics to track our progress 
against these priorities many of which  
are reported regularly to the set 
acquiring and retaining key  
capabilities and talent
during 2013 we hired about 7 800 
permanent employees to support our 
growth platforms including building our 
business in emerging markets to continue 
to build the new capabilities required to 
implement our strategy successfully and  
to replace leavers we have successfully 
attracted talent to supplement critical 
capabilities across the business and to 
refresh our leadership pipeline in key areas
we focus considerable attention on 
emerging talent recruitment to secure  
and develop the longterm potential for  
the business for example we run a global 
programme to hire recent graduates for  
our procurement quality engineering it 
and supply chain functions in 2013 we 
launched a new graduate programme for 
imed to complement our established  
imed post doc programme that recruits 
postdoctoral researchers we invest  
in internships and thesis work opportunities 
globally as well as leading a scheme in 
china and japan for mba students
the composition of our global workforce 
continues to change to reflect our focus  
on emerging markets as shown in our 
sales and marketing workforce composition 
figure opposite for example in 2013 
3200 new recruits joined us in china  
we deploy a range of innovative approaches 
to help achieve our plans in emerging 
markets and to ensure we have an 
attractive employer brand and strong  
global reputation in 2013 astrazeneca 
was featured for the first time in linkedin’s 
indemand employer list of the most sought
after employers in the world 
the level of voluntary employee turnover 
increased to 81 in 2013 from 7 3 in 
2012 in a year of significant organisational 
change at senior level we also experienced 
higher than normal turnover among our 
high performers more broadly our voluntary 
employee turnover rate among our high 
performers in 2013 also increased we 
continued to invest significant management 
time in minimising the business risks of 
employee turnover particularly in volatile 
markets this included regular set reviews 
of resignation rates in total by set area  
by key markets and for significant sites in 
addition we took steps to retain key people 
and talent such as establishing regular risk 
assessments and retention plans
acquisition of bms’s diabetes interests
in december 2013 astrazeneca 
announced an agreement to purchase 
bms’s 50 interest in astrazeneca’s  
and bms’s joint diabetes business this 
acquisition completed in february 2014 
under the agreement approximately 3900 
bms and amylin employees will transfer  
to astrazeneca these employees are not 
included in the analysis described in this 
section or elsewhere in this annual report
employees by geographical area  
 europe 348
 north america 217
 central and south america 60
 middle east and africa 41
 asia pacific 334
  china 155
  japan 55
  russia 25 
  other asia pacific 99
66 astrazeneca annual report and form 20f information 2013
strategic report  resources review sales and marketing 
workforce composition  
emerging markets
established markets
53 47
48 52
43 57
58
15
42
85
2013
2012
2011
2010
2002
developing leadership 
we encourage and support our people  
in achieving their full potential by providing  
a range of learning and development ld 
programmes these aim to build the 
capabilities and encourage the behaviours 
needed to deliver our business strategy
we have a global approach supported  
by our global talent and development 
organisation to ensure high standards  
of ld practice across astrazeneca we 
continue to develop and deploy instructor
led and online development resources 
which we aim to make available to all 
employees to increase access to learning 
and support selfdevelopment
we recognise that good leadership plays  
a critical role in stimulating high levels of 
performance and engagement in 2013  
we initiated a groupwide leadership 
development strategy to strengthen our 
leadership and make it a differentiating 
factor in our success our ultimate vision  
is to offer all employees an appropriate 
globally consistent leadership development 
experience that helps inspire an enterprise
wide perspective in 2013 we launched a 
customised programme for our top 150 
leaders with harvard business school  
this will be followed by a programme for 
the next 600 leaders with the massachusetts 
institute of technology mit both 
programmes help leaders to consider the 
environment they create how open and 
inclusive it can be and how this can lead  
to opportunities for innovation 
changing our culture
our leadership development frameworks 
focus on the behaviours we believe are 
essential for strong and effective leadership 
such behaviours were defined in line with 
the work completed in 2013 to identify  
the astrazeneca values as outlined in the 
pioneering science lifechanging medicines 
section on page 12
each value has a corresponding set  
of required behaviours which describe  
what is required at the individual level  
to demonstrate the values these 
behaviours apply to all employees  
and are complemented with manager 
accountabilities which define what we 
expect from managers 
maximising our talent
the development of an internal pipeline  
of future global leaders is as high a priority 
as the judicious hiring of new leaders  
we identify individuals with the potential  
for senior and complex roles to provide 
succession candidates for leadership roles 
across astrazeneca we regard these 
individuals as key and proactively support 
them in reaching their potential through  
for example global talent development 
programmes and targeted development 
opportunities the changes to the set 
announced in january 2013 included  
the promotion of six internal candidates 
demonstrating our commitment to 
developing senior leaders
we remain committed to making full  
use of the talents and resource of all our  
people we have policies in place to avoid 
discrimination including on the grounds  
of disability our policies cover recruitment 
and selection performance management 
career development and promotion 
transfer training including retraining if 
needed for people who have become 
disabled and reward
improving the strength and diversity  
of the talent pipeline
†
 
our workforce has a diverse range of 
perspectives talents and ideas for a 
business founded on innovation this is  
a source of great strength understanding 
the different needs and perspectives of  
our stakeholders is central to how we do 
business and to how we create medicines 
which make a difference to patients’ lives 
we strive to reflect the diversity of the 
communities we serve in our workforce  
and leadership team as we continue to 
reshape our organisation and geographic 
footprint we aim to ensure diversity and 
inclusion are integrated in a meaningful way 
into our business and people strategies 
our objective is to accelerate diversity  
and inclusion in its broadest sense 
appropriately throughout the business  
to build accountability and track progress 
as shown in the gender diversity figure 
overleaf women make up 504 of  
our global workforce there are currently 
three women on our board 25 and 
below board level women account for  
40 of managers at global career level f 
and above 
our 2015 target is to improve female 
representation
  at global career level f and  
above the highest six bands of our 
employee population from 38 2010  
to 43 2015
  in the global talent pool from 33 2010 
to 38 2015 
we also track the countries of origin of  
our senior leaders and within our global 
talent pool to measure progress over the 
medium term 
our progress against these metrics is 
primarily overseen by the responsible 
business council made up of senior 
leaders from across astrazeneca  
and through business area people 
strategies and business strategies  
see the responsible business section  
from page 220 for more information
additional information financial statements corporate governance strategic report
67 astrazeneca annual report and form 20f information 2013 we continue to make progress against  
our diversity and inclusion strategy as 
demonstrated for example by the global 
insight exchange programme this aims  
to accelerate the development of our 
leadership culture and talent pipeline 
through sharing diversity of thought and 
experience the programme which is now 
in its second year launched a second 
cohort in 2013 consisting of 60 coaching 
pairs of individuals from different leadership 
levels functional areas and geographies 
our progress has been recognised 
externally in 2013 we received opportunity 
now’s ‘global excellence in practice 
award’ for work in asia to attract and  
retain local and global talent with emphasis 
on gender and local geography diversity  
in 2013 we were also included in the 
times’ ‘top 50 employers for women  
in the uk’ list for the first time and in the 
us based on data submitted in 20112012 
we were included in the top 10 of the 
national association for female executives’ 
list of top 50 companies for female 
executives in 2013
employee engagement 
we use a variety of global leadership 
communication channels to engage 
employees in our business strategy  
these include facetoface meetings video 
conferencing yammer a social media tool 
and regular global and businessspecific 
communication campaigns eg a week 
dedicated to communicating to employees 
about our scientific leadership ambitions 
and projects to encourage twoway 
dialogue to take place in 2013 we ran an 
online collaborative event called ‘culture 
jam’ to discuss and explore our culture and 
values the culture jam with over 30000 
registrations for the event was designed  
to be a fully inclusive way of providing 
employees the opportunity to engage 
directly with senior leaders as well as hold 
virtual discussions with colleagues globally 
locally facilitated offline sessions were  
run in parallel so that employees could 
participate in local languages as 
appropriate and without the need for 
computers the culture jam generated 
some 25000 employee questions stories 
and comments that will be used to further 
support and accelerate culture change 
within the organisation  
we did not hold a global employee survey 
focus in 2013 instead we ran two 
‘pulse’ surveys across a sample of the 
organisation a further survey was carried 
out in january 2014 the results rated 
employee understanding of our strategy at 
88 with employee belief in our strategy 
rising to 84 in parallel we ran indepth 
pulse surveys on employees affected by  
the site changes in the uk and the us  
we intend to conduct regular employee 
surveys during 2014 as well as reviewing 
the pulse survey results we also track key 
metrics such as retention rates to help 
assess levels of engagement 
a key element of our new culture and 
behaviours is a continued focus on 
performance by strengthening our focus 
on setting highquality objectives aligned  
to our business strategy and on ongoing 
coaching and feedback we strive so  
that performance at all levels delivers  
value the board is responsible for  
setting our high level strategic objectives 
and monitoring performance against  
them see the operation of the board 
section from page 88 managers are 
accountable for working with their teams  
to develop individual and team performance 
targets and for ensuring employees 
understand how they contribute to overall 
business objectives
we will continue to empower our leaders  
to drive performance hold our managers 
accountable for understanding and delivering 
against required standards and provide the 
tools to reward outstanding contributions
our focus on optimising performance is 
reinforced by performancerelated bonus 
and incentive plans astrazeneca also 
encourages our people to participate in 
various employee share plans some of 
which are described in the directors’ 
remuneration report from page 102 and 
also in note 24 to the financial statements 
from page 173
human rights
†
we are committed to respecting and 
promoting international human rights in  
our operations and our sphere of influence 
our objective is to ensure that human rights 
considerations are appropriately integrated 
into our policies processes and practices 
astrazeneca supports the principles set 
out in the un universal declaration of 
human rights and the international labour 
organization’s ilo standards on child 
labour and minimum wages and we are 
members of the united nations global 
compact on human rights as reported in 
2011 we have carried out labour reviews in 
106 countries in which we have employees 
these focused on ilo core areas including 
freedom of association and collective 
bargaining child labour discrimination 
working hours and wages the review 
framework was adapted from the 
employment section of the danish institute 
for human rights assessment tool for 
pharmaceutical companies which was 
developed with our industry’s help and 
launched in 2010 results showed that our 
practices are generally good and consistent 
across all countries based on our mandate 
that our global standards are applied when 
board of directors 
of the company 12
set 12 directors of the  
company’s subsidiaries 317
astrazeneca  
employees 51500
 male 75
 female 25
 male 75
 female 25
 male 76
 female 24
 male 496
 female 504
  for the purposes of section 414c8cii of the companies act 2006 ‘senior managers’ are the set the directors  
of all of the subsidiaries of the company and other individuals holding named positions within those subsidiaries
gender diversity
68 astrazeneca annual report and form 20f information 2013
strategic report  resources review  employees vehicle collisions 
year
collisions
per million km target
2015 560
2013 613 660
2012 743 710
lost time injuryillness
year
lost time injuryillness rate
per million hours worked target
2015 191
2013 188 226
2012 209 238
  2012 figure revised from 201 to 209 to include late  
reported data
external national standards do not  
meet our minimum requirements we 
review our policies procedures and 
practices against the united nations 
guiding principles on business and  
human rights and implement changes 
where and when appropriate 
managing change 
recruitment in emerging markets  
continues to be accompanied by 
headcount reductions in our established 
markets reflecting our strategic drive  
to improve efficiency and effectiveness 
reductions followed restructuring in  
rd supply and manufacturing enabling 
functions and sales and marketing  
the net effect of these changes since the  
end of 2006 has been to reduce our total 
headcount by some 15300 from 66800  
to 51500 the restructuring section on 
page 16 provides more information on  
our restructuring programme
in march 2013 as outlined in the our 
strategic priorities section from page 16  
we announced the results of our strategy 
review including plans to invest in three 
strategic rd centres establishing these 
centres is significantly affecting our existing 
site occupancy and will result in relocating 
employees willing to move to the new 
locations redundancy for those who 
cannot relocate associated outplacement 
support and recruitment to fill vacant 
positions we are committed to ensuring 
that our core values robust people policies 
consultation infrastructure and prior 
experience are integrated into this process 
of change trade unions and employee 
representative groups are and will continue 
to be involved throughout the restructuring 
process with the strong relationships built 
over recent years being of great value in 
executing this change
significant investment has been made  
in delivering enhanced relocation policies 
and practices to encourage employees  
to relocate as well as allowing as much 
flexibility as possible in the timing of moves
employee relations
we work to ensure a level of global 
consistency in managing employee 
relations while allowing enough flexibility  
to support local markets in building good 
relations with their workforces taking into 
account local laws and circumstances  
to that end relations with trade unions are 
nationally determined and managed locally 
in line with the applicable legal framework 
and standards of good practice however 
each change programme has its unique 
challenges and a standard solution may  
not always be appropriate where this is the 
case the appropriate solution is developed 
through consultation with employee 
representatives or where applicable trade 
unions with the aim of retaining key skills 
and mitigating job losses 
safety health and wellbeing
†
we are committed to promoting a safe 
healthy and energising work environment  
in which our people and those from third 
parties working with us are able to express 
their talents drive innovation and improve 
business performance
our targets for 2013 which were set in 
2011 for the years up to 2015 included
  no fatalities
  lost time injuryillness rate per million 
hours worked of 226
  66 collisions per million kilometres driven
in 2013 there were no fatal accidents 
involving astrazeneca employees 
contractors or members of the public 
our highest priority for improvement 
remains driver safety we focus on 
promoting driver safety among our sales 
forces which make up the largest group  
of employees who drive on astrazeneca 
business performance is monitored 
centrally to assess progress and identify 
areas for improvement in 2013 we 
improved on our annual target for collisions 
per million kilometres driven and are in  
a good position to meet our 2015 target
in 2013 the lost time injuryillness rate 
reduced by 10 from 2012 and we 
achieved our 2015 target of a 25 
reduction in the lost time injuryillness rate 
from the 2010 baseline two years early 
workrelated stress has been a particular 
focus for us in recent years in 2013 we 
achieved a 13 reduction in the number  
of reportable cases compared to 2012 we 
are continuing our efforts in this area using 
a riskbased approach including wellbeing 
risk assessment tools to identify highrisk 
areas and target interventions effectively
†  further information on astrazeneca’s approach to  
responsible business can be found in the responsible 
business section from page 220 and on our website  
wwwastrazenecacomresponsibility
additional information financial statements corporate governance strategic report
69 astrazeneca annual report and form 20f information 2013 our relationships
our employees are a critical resource in delivering our strategic 
priorities but to realise our full potential we also depend on  
the trust and confidence of a wider set of stakeholders 
our relationships with our partners  
exist over the full lifecycle of a medicine 
they include the patients and physicians  
for whom we provide medicines for some  
of the world’s most serious diseases  
and the universities and institutes that 
collaborate with our scientists they also 
include governments regulators those  
who pay for healthcare suppliers and 
commercial partners
the sales and marketing section from  
page 40 outlines our focus on customers 
and our efforts to communicate with  
them in a way which suits them best our 
research and development section from 
page 36 demonstrates how we work from 
an early stage in a medicine’s life with those 
who pay for our medicines to demonstrate 
their full value to patients
in the manufacturing and supply section 
from page 43 we examine the relationships 
we have with our suppliers and the 
commitment we have to working only with 
those that embrace standards of ethical 
behaviour consistent with our own this 
commitment also extends to joint venture 
and copromotion partners and research 
and licensing partners
partnering
as outlined in the our strategic priorities 
section from page 16 business development 
specifically partnering is an important 
supporting pillar that supplements and 
strengthens our pipeline and our efforts  
to achieve scientific leadership as noted 
in the research and development section 
from page 36 we are keen to access the 
best science whether it comes from within 
or outside our laboratories 
we partner with others around the  
world including academia governments 
industry scientific organisations and patient 
groups to access the best science to 
stimulate innovation and to accelerate  
the delivery of new medicines to target 
unmet medical need 
we are always looking for strategically 
aligned valueenhancing business 
development opportunities our current 
focus is on
  research transactions – increasing 
earlystage research transactions and 
academic alliances 
  peer collaborations – exploring 
valuecreating peer collaborations 
  inlicensing and bolton acquisitions – 
pursuing partnering inlicensing and 
bolton acquisitions to strengthen our 
core therapy area portfolios
over the past three years we have 
completed more than 150 major business 
development transactions including 51 in 
2013 twenty one of these were clinical or 
research collaborations 11 deals helped 
expand our capabilities in biologics and six 
were acquisitions these acquisitions were 
of alphacore pearl therapeutics omthera 
amplimmune spirogen and the acquisition 
of bms’s 50 interest in bms’s and 
astrazeneca’s joint diabetes business 
completed in february 2014 
see the research and development 
section from page 36 the therapy area 
review from page 48 and note 22 to the 
financial statements for more information 
on our partnership activity in 2013
community investment
† 
we are committed to meeting our 
responsibility as a global corporation to 
support the wider community maximising 
the benefit of our investment for all 
stakeholders through focused investment  
and embracing best practice 
in 2013 we spent 112 billion 2012 
118 billion on community investment 
sponsorships partnerships and charitable 
donations including our product donation 
and patient assistance programmes which 
make our medicines available free of 
charge or at reduced prices through  
our three patient assistance programmes  
in the us we donated products valued at 
an average wholesale price of more than 
105 billion 2012 112 billion we also 
donated products worth over 18 million 
valued at average wholesale prices to 
charitable organisations americares and 
direct relief international 
our global community investment strategy 
focuses on two key areas healthcare in the 
community and science in education 
in 2013 we continued to expand our  
young health programme yhp country 
programme and as the figure opposite 
shows have 18 programmes under way 
around the world with over 480000 young 
people directly reached with the skills and 
information they need to improve their 
health we have exceeded our target of 
reaching a minimum of 300000 young 
people by the end of 2013 this includes 
young people in communities across five 
continents over 4500 of these young 
people have been trained to share this 
health information with their peers and with 
the community and over 9000 frontline 
health providers have completed training 
programmes in adolescent health 
we are on track to meet our clinton global 
initiative commitment to reach 500000 
young people by the end of 2015 in 2013 
as part of yhp  our work with johns 
hopkins bloomberg school of public 
health jhsph included the publication  
of a special edition of the journal of 
adolescent health phase 1 findings  
from the wellbeing of adolescents in 
vulnerable environments wave study 
being undertaken by jhsph were also 
presented at the international association 
of adolescent health istanbul in june 
2013 phase 2 of wave is under way  
with a final report due in 2014
70 astrazeneca annual report and form 20f information 2013
strategic report  resources review our support for science education in  
the community takes a number of forms 
for example in 2011 we entered a three 
year partnership with career academies 
uk to support increased participation by  
16 to 19 yearolds in science technology 
engineering and maths stem subjects 
the target that onethird of career 
academies have a stem theme by the 
20142015 academic year was exceeded  
in the 20132014 academic year with  
54 career academies 35 having a  
stem theme 
disaster relief
the british red cross continues to act as 
our global disaster relief partner with the 
majority of our disaster relief donations 
channelled through it in response to the 
typhoon in the philippines in november 
2013 we donated 390000 via the british 
red cross to the philippines disaster 
appeal product donations with a 
wholesale average cost value of over 
350000 were also made to support  
the victims of the disaster
following the 2011 earthquake in japan 
we made a commitment of 1037 700  
to the japanese charity ashinaga to build  
sendai rainbow house a house for 
children orphaned by the disaster in 
accordance with agreed project milestones 
in october 2013 we made a final donation 
to ashinaga of 259425 completing  
our commitment completion of sendai 
rainbow house is expected in 2014
†  further information on astrazeneca’s approach to  
responsible business can be found in the responsible 
business section on page 220 and on our website  
wwwastrazenecacomresponsibility
 
young health programme  
country programmes
australia brazil india zambia
increasing life chances
through improving driver
licensing provision and 
knowledge of road safety 
issues
hygiene infection sexual 
reproductive health and 
broader health issues
canada south korea portugal 
sweden
china
improving the emotional and
mental wellbeing of vulnerable
adolescents
educating migrant youths
coming from rural areas
around water and air pollution
denmark germany the netherlands uk
physical activities among 
socially vulnerable young 
people
health issues of homeless 
adolescents
norway romania
health of young people from
immigrant families
cardiovascular risk prevention
spain turkey
sexual education healthy
eating habits and prevention
of drug addiction
improving communication
and social skills among
adolescents to help them
avoid violence
us
helping adolescents live
healthier lives through a
proactive focus on their
strengths and assets based
on the 40 developmental
assets model
additional information financial statements corporate governance strategic report
71 astrazeneca annual report and form 20f information 2013 intellectual property
a wellfunctioning system of ip rights underpins our business model 
discovering and developing a new 
medicine requires a significant investment 
of resources by researchbased 
pharmaceutical companies over 10 or more 
years for this to be a viable investment 
new medicines must be safeguarded from 
being copied with a reasonable amount of 
certainty for a reasonable period of time
our industry’s principal economic 
safeguard is a wellfunctioning patent 
system that recognises our efforts and 
rewards innovation with appropriate 
protection allowing time to generate the 
revenue we need to reinvest in new 
pharmaceutical innovation patent rights  
are limited by territory and duration and  
a significant portion of a patent’s duration 
can be spent on rd before it is possible 
to launch the protected product therefore 
we commit significant resources to 
establishing and defending our patent  
and related ip protections for inventions
patent process
we file applications for patent protection  
for our inventions to safeguard the large 
investment required to obtain approval of 
potential new drugs for marketing further 
innovation means we may seek additional 
patent protection as we develop a product 
and its uses we apply for patents via 
patent offices around the world which 
assess whether our inventions meet the 
strict legal requirements for a patent to be 
granted in some countries our competitors 
can challenge our patents in the patent 
offices and in all countries competitors 
can challenge our patents in the courts  
we can face challenges early in the patent 
application process and throughout a 
patent’s life these challenges can be to  
the validity of a patent andor its effective 
scope and are based on everevolving legal 
precedents there can be no guarantee  
of success for either party in patent 
proceedings for information about third 
party challenges to patents protecting our 
products see note 25 to the financial 
statements from page 176
the basic term of a patent is typically  
20 years from the filing of the patent 
application with the relevant government 
patent office however the product 
protected by a pharmaceutical patent  
may not be marketed for several years  
after filing due to the time required for 
clinical trials and the regulatory approval 
process to obtain marketing approval for 
the product patent term extensions pte 
are available in certain major markets 
including the eu and the us to compensate 
for these delays the term of the pte can 
vary from zero to five years depending on 
the time taken to obtain any marketing 
approval the maximum patent term  
when including pte cannot exceed  
15 years eu or 14 years us from the  
first marketing authorisation
the generic industry is increasingly 
challenging innovators’ patents at earlier 
stages almost all leading pharmaceutical 
products in the us have faced or are 
facing patent challenges from generic 
manufacturers patent challenges to our 
competitors’ products may lead to the 
availability of generics in the same product 
class as patented products we currently 
supply which may materially impact our 
business we are also experiencing 
increased challenges elsewhere in the 
world for example in europe canada  
asia and latin america further information 
about the risks relating to patent litigation 
and early loss and expiry of patents is 
contained in the principal risks and 
uncertainties section from page 200
patent expiries
the tables on page 198 set out certain 
patent expiry dates and sales for our key 
marketed products the expiry dates  
relate to a product’s basic substance  
patent unless indicated otherwise  
the expiry dates shown include any  
pte and paediatric exclusivity periods 
data exclusivity
in addition to patent protection regulatory 
data protection rdp or ‘data exclusivity’  
is an important ip right which arises in 
respect of data which is required to be 
submitted to regulatory authorities in  
order to obtain marketing approvals for  
our medicines significant investment  
is required to generate such data for 
example through conducting global clinical 
trials and this proprietary data is protected 
from use by third parties such as generic 
manufacturers for a number of years in a 
limited number of countries the period of 
such protection and the extent to which it 
is respected differs significantly between 
countries rdp is an important protection 
for our products and we believe in enforcing 
our rights to it particularly as patent rights 
are increasingly being challenged
the rdp period starts from the date of the 
first marketing approval from the relevant 
health authority and runs parallel to any 
pending patent protection rdp generally 
expires prior to patent expiry in all major 
markets if a product takes an unusually 
long time to secure marketing approval  
or if patent protection has not been secured 
has expired or has been lost then rdp 
may be the sole ip right protecting  
a product from copying as generic 
manufacturers should not be allowed to  
rely on astrazeneca’s data to support the 
generic product’s approval or marketing 
until the rdp right has expired 
compulsory licensing
compulsory licensing the overruling of 
patent rights to allow patented medicines to 
be manufactured and sold by other parties 
is increasingly part of the accessto
medicines debate we recognise the right 
of developing countries to use the 
flexibilities in the world trade organization’s 
agreement on traderelated aspects  
of intellectual property rights trips 
including the doha amendment in certain 
circumstances such as a public health 
emergency we believe this should apply 
only when all other ways of meeting the 
emergency needs have been considered 
and where healthcare frameworks and 
safeguards exist to ensure the medicines 
reach those who need them
“ investing in new medicines  
is risky successful medicines 
must be safeguarded from 
being copied for a reasonable 
period so that we can make 
an appropriate return on our 
significant investment” 
  jef f p o t t  
general counsel 
72 astrazeneca annual report and form 20f information 2013
strategic report  resources review our infrastructure
the group owns and operates numerous rd and production 
facilities and carries out sales and marketing activities in offices 
across the world these activities are supported by significant 
information technology and information services resources
rd resources 
we have approximately 9000 employees  
in our rd organisation across 11 principal 
sites in six countries our rd geographic 
footprint includes four main small molecule 
facilities in the uk alderley park and 
macclesfield sweden mölndal and the 
us waltham massachusetts we also 
have a clinical development facility in japan 
osaka our principal sites for biologics  
are in the us gaithersburg maryland and 
mountain view california and in the uk 
cambridge our wilmington delaware  
site in the us focuses on latestage 
development across the entire therapeutic 
portfolio our strategic expansion in 
emerging markets continues and includes 
the ongoing growth of our research facility 
in china shanghai in january 2014 we 
announced plans to close our rd site in 
india bangalore 
rd spend analysis 
2013 2012
2
2011
2
discovery  
and early 
development 
55 60 60
latestage 
development  
45 40 40
core rd  
costs
1
4269m 4241m 4479m
1
  reported expenditure in our rd organisation was  
48 billion 2012 52 billion 2011 55 billion
2
 restated for new core definition as detailed on page 224 
in 2013 there was core rd expenditure 
of 43 billion in our rd organisation 
2012 42 billion 2011 45 billion  
in addition 635 million was spent  
on acquiring product rights such as 
inlicensing 2012 5228 million 2011 
189 million and we invested approximately 
490 million on the implementation  
of our rd restructuring strategy 2012 
791 million 2011 468 million the 
allocations of spend by early development 
and latestage activities are presented in 
the rd spend analysis table above 
manufacturing and supply resources 
our principal small molecule manufacturing 
facilities are in the uk avlon and 
macclesfield sweden gärtuna and 
södertälje the us newark delaware and 
westborough massachusetts china  
wuxi and taizhou russia vorsino france 
reims and dunkerque japan maihara 
australia north ryde indonesia jakarta 
egypt cairo india bangalore puerto rico 
canóvanas germany wedel mexico 
lomas verdes brazil cotia and argentina 
buenos aires 
we currently operate sites for the 
manufacture of apis in the uk and 
sweden complemented by the efficient 
use of external sourcing our principal 
tablet and capsule formulation sites are  
in the uk sweden puerto rico and the 
us we also have major formulation sites 
for the global supply of parenteral andor 
inhalation products in sweden france 
australia and the uk 
for biologics our four principal commercial 
manufacturing facilities are in the us 
frederick maryland and philadelphia 
pennsylvania the uk speke and the 
netherlands nijmegen with capabilities  
in process development manufacturing 
and distribution of biologics including 
worldwide supply of mabs and influenza 
vaccines which enables efficient 
management of our combined small 
molecule and biologics pipeline 
at the end of 2013 approximately 9600 
people at 24 sites in 17 countries were 
working on the manufacture and supply  
of our products 
information technology and 
information services resources
at the end of 2013 our it organisation 
comprised approximately 1500 people 
across our sites centred in the uk alderley 
park and macclesfield sweden södertälje 
and mölndal and the us wilmington 
together with people based with internal 
customers across our rd and operations 
sites and our key marketing companies  
in november 2013 we announced a review 
of our it strategy to enable us to better 
support and enable astrazeneca’s 
business priorities for the future as part  
of our new strategy we will make a number 
of changes to our operating model and 
organisational structure to make us more 
efficient responsive and innovative
acquisition of bms’s diabetes interest
in december 2013 astrazeneca 
announced an agreement to purchase 
bms’s 50 interest in astrazeneca’s  
and bms’s joint diabetes business this 
acquisition completed in february 2014 
under the agreement approximately 3900 
bms and amylin employees will transfer  
to astrazeneca these employees are not 
included in the analysis described above  
or elsewhere in this annual report
additional information financial statements corporate governance strategic report
73 astrazeneca annual report and form 20f information 2013 financial review
“ in 2013 our financial performance 
was defined by significant revenue 
decline associated with loss of 
exclusivity 2013 was also a year of 
investment in business development 
with acquisitions in our three core 
therapy areas”
contents
74  introduction 
75   business background and 
results overview
76  measuring performance
77   results of operations 
– summary analysis of year  
to 31 december 2013
79  cash flow and liquidity 
80  financial position
82   capitalisation and shareholder 
return
82  future prospects
82  financial risk management
83  critical accounting policies  
and estimates
87  sarbanesoxley act section  
404
our financial performance in 2013 was 
defined by the significant revenue decline 
associated with the loss of exclusivity  
for several products seroquel ir alone 
declined by over 900 million in constant 
currency terms and regional losses of 
exclusivity for brands including atacand 
and crestor combined for a further 
negative impact of more than 1 billion  
the changing product mix also impacted 
on our gross margin percentage
as detailed in the our relationships section 
from page 70 2013 was a year of investment 
in business development the acquisitions 
we have made have been in our three  
core therapy areas with the intention of 
strengthening our pipeline or helping us  
gain access to cuttingedge science
our 7 increase in core sga costs  
at cer reflects our focus on investing in  
our growth platforms the excise fee 
imposed by the enactment of us healthcare 
reform measures amounted to 27 of 
core sga costs
we generated an incremental 12 billion  
of revenue at cer for our key growth 
platforms brilinta the diabetes franchise 
respiratory emerging markets and japan 
core rd expenditures were up only  
1 to 43 billion the group was able  
to contain rd costs despite increased 
business development activities in 2013 
this was possible due to strong cost 
control and flexibility in the reallocation  
of resources 
reported operating profit at 37 billion 
was adversely impacted by an impairment 
charge of 18 billion taken against bydureon
in march 2013 we announced the fourth 
phase of our restructuring programme 
transforming the way we work is crucial  
to delivering our strategy and we are 
committed to dramatically simplifying our 
organisation and processes while creating 
an innovative environment including 
through colocation on a more focused 
footprint further details on our restructuring 
programme are provided in the restructuring 
section from page 16 we continue to drive 
productivity improvements across the 
organisation removing complexity and 
creating additional headroom to invest in 
growing our business and ensuring returns 
to our shareholders 
marc dunoyer 
chief financial officer
74 astrazeneca annual report and form 20f information 2013
strategic report the purpose of this financial review is to 
provide a balanced and comprehensive 
analysis of the financial performance of the 
business during 2013 the financial position 
as at the end of the year and the main 
business factors and trends which could 
affect the future financial performance of 
the business
all growth rates in this financial review are 
expressed at cer unless noted otherwise
business background and results 
overview 
the business background is covered in  
the our marketplace section from page  
13 the therapy area review from page  
48 and the geographical review from  
page 214 and describes in detail the 
developments in both our products and the 
geographical regions in which we operate 
as described earlier in this annual report 
sales of our products are directly influenced 
by medical need and are generally paid for 
by health insurance schemes or national 
healthcare budgets our operating results 
can be affected by a number of factors 
other than the delivery of operating plans 
and normal competition such as
  the risk of competition from generics 
following loss of patent protection or 
patent expiry of one of our products or  
an ‘at risk’ launch by a competitor or  
the launch of a generic competitor in  
the same class as one of our products 
with the potential adverse effects on 
sales volumes and prices for example 
in 2013 our performance was affected 
by generic competition to atacand 
crestor nexium and seroquel ir further 
details of patent expiries for our key 
marketed products are included in the 
patent expiries section on page 198
  the adverse impact on pharmaceutical 
prices as a result of the macroeconomic 
and regulatory environment for instance 
although there is no direct governmental 
control on prices in the us action from 
federal and individual state programmes 
and health insurance bodies is leading to 
downward pressures on realised prices 
in other parts of the world there are a 
variety of price and volume control 
mechanisms and retrospective rebates 
based on sales levels that are imposed 
by governments 
  the timings of new product launches 
which can be influenced by national 
regulators and the risk that such new 
products do not succeed as anticipated 
together with the rate of sales growth and 
costs following new product launches 
  currency fluctuations our functional  
and reporting currency is the us dollar 
but we have substantial exposures to 
other currencies in particular the euro 
japanese yen pound sterling and 
swedish krona 
  macro factors such as greater demand 
from an ageing population and increasing 
requirements of emerging markets 
over the longer term the success of our 
rd is crucial and we devote substantial 
resources to this area the benefits of this 
investment are expected to emerge over 
the longterm and there is considerable 
inherent uncertainty as to whether and 
when it will generate future products
the most significant features of our financial 
results in 2013 are
  revenue was down 6 to 25711 million 
reported 8 due to competition from 
generics
  the key growth platforms of brilinta  
the diabetes franchise respiratory 
emerging markets and japan delivered 
an incremental 12 billion of revenue at 
cer in 2013 this was more than offset 
by the impact of patent expiries which 
reduced revenue by 22 billion at cer
  core operating profit was down 22 at 
cer reported 25 to 8390 million 
greater than the decline in our revenue 
primarily due to the higher expenditures 
associated with our key growth platforms 
and strengthened pipeline
  reported operating profit was down 51 
at cer reported 54 to 3712 million 
driven by impairment charges including 
1758 million for bydureon
  core operating margin of 33 of revenue 
was down 69 percentage points at  
cer reported 7 3 percentage points 
reported operating margin was 144 
of revenue
  core eps decreased by 23 reported 
26 to 505 reported eps was down 
55 reported 59 to 204 
  dividends paid decreased to  
3461 million 2012 3665 million 
there were no share repurchases in  
the year 2012 2635 million following 
the announcement in october 2012  
of the suspension of the group’s share 
repurchase programme
  total restructuring costs associated  
with the global programme to reshape  
the cost base of the business were 
1421 million in 2013 the fourth phase 
of restructuring is focused on the 
restructuring of rd into strategic 
research and development centres in  
the us the uk and sweden to improve 
pipeline productivity the programme  
has been expanded to include additional 
activities such as a transformation of the 
it organisation the exit of rd activities 
in bangalore india and the exit from 
branded generics in certain emerging 
markets to further reduce costs and 
increase flexibility total restructuring 
costs charged since the start of our 
restructuring programme in 2007 amount 
to 7 848 million 
additional information financial statements corporate governance strategic report
75 astrazeneca annual report and form 20f information 2013 the following measures are referred to  
in this financial review when reporting  
on our performance both in absolute  
terms but more often in comparison  
to earlier years
  reported performance reported 
performance takes into account all the 
factors including those which we cannot 
influence principally currency exchange 
rates that have affected the results of  
our business as reflected in our group 
financial statements prepared in 
accordance with ifrss as adopted  
by the eu and as issued by the iasb 
  core financial measures these are 
nongaap measures because unlike 
reported performance they cannot  
be derived directly from the information  
in the group’s financial statements 
these measures are adjusted to exclude 
certain significant items such as
 − amortisation and impairment of 
intangibles including impairment 
reversals but excluding any charges 
relating to it assets
 − charges and provisions related to  
our global restructuring programmes 
this will include such charges that 
relate to the impact of our global 
restructuring programmes on our 
capitalised it assets 
 − other specified items principally 
comprising legal settlements and 
acquisitionrelated costs which include 
fair value adjustments and the imputed 
finance charge relating to contingent 
consideration 
  in determining the adjustments to  
arrive at the core result we use a set 
of established principles relating to  
the nature and materiality of individual 
items or groups of items excluding  
for example events which i are 
outside the normal course of business 
ii are incurred in a pattern that is 
unrelated to the trends in the 
underlying financial performance  
of our ongoing business or iii are 
related to major acquisitions to ensure 
that investors’ ability to evaluate  
and analyse the underlying financial 
performance of our ongoing business 
is enhanced see the 2013 
reconciliation of reported results  
to core results table on the page 
opposite for a reconciliation of 
reported to core performance  
as detailed in our 2012 annual report 
we revised our definition of core 
performance measures in 2013 
further details of the restatement of 
prior year comparative values under 
our new core measure definition are 
included in the financials prior year 
section on page 222
  constant exchange rate cer growth 
rates these are also nongaap 
measures these measures remove  
the effects of currency movements  
by retranslating the current year’s 
performance at previous year’s exchange 
rates and adjusting for other exchange 
effects including hedging  
a reconciliation of the reported results 
adjusted for the impact of currency 
movements is provided in the 2013 
reported operating profit table on the 
page opposite 
  gross and operating profit margin 
percentages these measures set out 
the progression of key performance 
margins and illustrate the overall quality  
of the business 
  prescription volumes and trends for  
key products these measures can 
represent the real business growth  
and the progress of individual products 
better and more immediately than 
invoiced sales 
  net fundsdebt this represents our  
cash and cash equivalents current 
investments and derivative financial 
instruments less interestbearing loans 
and borrowings 
cer measures allow us to focus on the 
changes in sales and expenses driven  
by volume prices and cost levels relative  
to the prior period sales and cost growth 
expressed in cer allows management  
to understand the true local movement  
in sales and costs in order to compare 
recent trends and relative return on 
investment cer growth rates can be used 
to analyse sales in a number of ways but 
most often we consider cer growth by 
products and groups of products and by 
countries and regions cer sales growth 
can be further analysed into the impact of 
sales volumes and selling price similarly 
cer cost growth helps us to focus on the 
real local change in costs so that we can 
manage the cost base effectively
we believe that disclosing core financial 
and growth measures in addition to our 
reported financial information enhances 
investors’ ability to evaluate and analyse  
the underlying financial performance of  
our ongoing business and the related key 
business drivers the adjustments made  
to our reported financial information in 
order to show core financial measures 
illustrate clearly and on a yearonyear or 
periodbyperiod basis the impact upon 
our performance caused by factors such  
as changes in sales and expenses driven 
by volume prices and cost levels relative  
to such prior years or periods
as shown in the 2013 reconciliation  
of reported results to core results table  
on the page opposite our reconciliation  
of reported financial information to core 
financial measures includes a breakdown  
of the items for which our reported 
financial information is adjusted and a 
further breakdown by specific line item as 
such items are reflected in our reported 
income statement this illustrates the 
significant items that are excluded from 
core financial measures and their impact 
on our reported financial information  
both as a whole and in respect of specific 
line items
management presents these results 
externally to meet investors’ requirements 
for transparency and clarity core financial 
measures are also used internally in the 
management of our business performance 
in our budgeting process and when 
determining compensation
core financial measures are nongaap 
measures all items for which core financial 
measures are adjusted are included in our 
reported financial information as they 
represent actual costs of our business in 
the periods presented as a result core 
financial measures merely allow investors  
to differentiate between different kinds of 
costs and they should not be used in 
isolation you should also refer to our 
reported financial information in the 2013 
reported operating profit table on the page 
opposite our reconciliation of core financial 
measures to reported financial information 
in the reconciliation of reported results  
to core results table on the page opposite 
and to the results of operations – summary 
analysis of year to 31 december 2012 
section from page 222 for our discussion  
of comparative reported growth measures 
that reflect all factors that affect our 
business our determination of nongaap 
measures and our presentation of them 
within this financial information may differ 
from similarly titled nongaap measures  
of other companies
the set retains strategic management  
of the costs excluded from reported 
financial information in arriving at core 
financial measures tracking their impact  
on reported operating profit and eps with 
operational management being delegated 
on a casebycase basis to ensure clear 
accountability and consistency for each 
cost category
measuring performance
76 astrazeneca annual report and form 20f information 2013
strategic report  financial review results of operations – summary analysis of year to 31 december 2013 
2013 reported operating profit
2013 2012 percentage of sales 2013 compared with 2012
reported
m
cer
growth
m
growth
due to
exchange
effects
m
reported
m
reported
2013

reported
2012

cer
growth

reported
growth

revenue 25711 1701 561 27973 6 8
cost of sales 5261 9 123 5393 205 193 – 2
gross profit 20450 1692 438 22580 795 807 7 9
distribution costs 306 10 4 320 12 11 3 4
research and development 4821 411 11 5243 187 188 8 8
selling general and administrative costs 12206 2508 141 9839 475 352 25 24
other operating income and expense 595 379 4 970 23 35 39 39
operating profit 3712 4158 278 8148 144 291 51 54
net finance expense 445 502
profit before tax 3267 7646
taxation 696 1376
profit for the period 2571 6270
basic earnings per share  204 495
 restated on the adoption of ias 19 2011 as detailed in the group accounting policies section on page 136
2013 reconciliation of reported results to core results
2013
reported
m
restructuring
costs
m
intangible 
amortisation
m
net
intangible
impairments
m
legal 
provisions 
and other
m
2013 
core
m
core 2013 
compared with 2012
cer 
growth 

actual
growth

gross profit 20450 126 502 – – 21078 7 9
gross margin  795 820
distribution costs 306 – – – – 306 3 4
research and development 4821 490 30 50 18 4269 1 1
selling general and administrative costs 12206 805 902 1662 28 8865 7 6
other operating income and expense 595 – 157 – – 752 30 30
operating profit 3712 1421 1591 1712 46 8390 22 25
operating margin  144 326
taxation 696 302 256 364 7 1611
basic earnings per share  204 090 106 108 003 505
 each of the measures in the core column in the above table are nongaap measures
revenue for the year was down 6 on  
a cer basis and 8 on a reported basis 
the revenue decline was driven by a loss  
of exclusivity on brands including atacand 
crestor nexium and seroquel ir which 
reduced revenue by 22 billion at cer  
our key growth platforms of brilinta the 
diabetes franchise which benefited from  
a full year of amylinrelated product sales 
respiratory emerging markets and japan 
delivered an incremental 12 billion of 
revenue at cer in 2013 
revenue in the us was down 9 on a cer 
basis reported 9 with revenue in the 
rest of world down 4 at cer reported 
7 emerging markets sales increased by 
8 at cer reported 6 further details 
of our sales performance are contained in 
the geographical review from page 214
core gross margin was 820 05 
percentage points lower than last year at 
cer reported 04 percentage points 
driven by changes in our product mix to 
lower margin products when compared 
with 2012
core rd expense for the year was up  
1 at cer and reported as a result of 
absorbing higher costs from business 
development projects as well as investment 
in the growing number of latestage trials 
expenditures in core number of sga 
costs were 7 higher than last year at cer 
reported 6 as a result of increased 
levels of expenditure in support of our 
growth platforms of brilinta the diabetes 
franchise and emerging markets during  
the year sga costs also reflect a full year 
of costs associated with our expanded 
diabetes alliance with bms on amylin 
products entered into in 2012 the excise 
fee imposed by the enactment of us 
healthcare reform measures amounted  
to 27 2012 28 of core sga costs 
for the year
core other income for the year was  
down 30 at cer and reported with 
2012 benefiting from the sale of otc  
rights for nexium 
core operating profit for the year was down 
22 on a cer basis reported 25 to 
8390 million core operating margin was 
326 of revenue down 69 percentage 
points at cer reported 7 3 percentage 
points the decline in core operating profit 
was greater than the decline in revenue 
primarily due to expenditure associated 
with the group’s key growth platforms  
and strengthened pipeline
additional information financial statements corporate governance strategic report
77 astrazeneca annual report and form 20f information 2013 core eps was 505 down 23 compared 
with last year at cer reported 26 and 
broadly in line with the decline in core 
operating profit 
pretax adjustments to arrive at core 
amounted to 4678 million in 2013  
2012 3011 million excluded from  
core results were 
  restructuring costs totalling 1421 million 
2012 1558 million incurred as the 
group commenced the fourth phase of 
restructuring announced in march 2013 
  amortisation totalling 1591 million 
2012 1134 million relating to intangible 
assets except itrelated amortisation 
charges the increase was driven by  
a full year of amortisation arising from  
the amendment to the merck exit 
arrangements and the expansion of our 
diabetes alliance during 2012 as detailed 
in note 9 to the financial statements 
from page 150
  net intangible impairment charges of 
1712 million 2012 186 million 
including 1758 million against 
bydureon following sales performance 
below astrazeneca’s commercial 
expectations at the time of entering into 
the expanded diabetes alliance in 2012 
and 136 million following astrazeneca’s 
decision not to proceed with regulatory 
filings for fostamatinib partially offsetting 
these charges was the impairment 
reversal of 285 million following the 
commencement of the first of several 
phase iii clinical programmes for olaparib 
the full historic carrying value of the asset 
has been restored to our balance sheet 
further details relating to intangible asset 
impairments are included in note 9 to  
the financial statements from page 150
  legal provisions and other adjustments  
of 46 million income 2012 133 million 
charges including an 18 million 
adjustment to the fair value of contingent 
consideration payable arising on our 
business combinations completed in 
2013 as detailed in notes 16 and 22 to 
the financial statements on page 158 
and from page 166
reported operating profit for the year  
was down 51 at cer reported 54 to 
3712 million reported eps was down 
55 on a cer basis reported 59 to 
204 the larger declines compared with 
the respective core financial measures  
are mainly the result of the 1758 million 
impairment of bydureon as well as the  
full year amortisation related to the merck 
second option 
net finance expense was 445 million 
2012 502 million interest payable on 
defined benefit pension scheme liabilities 
fell by 14 million and there were fair value 
gains of 5 million recorded on longterm 
bonds in 2013 versus 10 million losses in 
2012 interest on longterm bonds for the 
year was 16 million lower than 2012
the reported taxation charge of  
696 million 2012 1376 million 
consisted of a current tax charge  
of 1398 million 2012 1677 million  
and a credit arising from movements  
on deferred tax of 702 million  
2012 301 million the current tax  
charge includes a prior period current  
tax charge of 46 million 2012 credit  
of 79 million
the reported tax rate for the year was 
213 compared with 180 for 2012  
the reported tax rate for the year ended 
31 december 2012 benefited from a  
230 million adjustment to deferred tax 
balances following substantive enactment 
of a reduction in the swedish corporation 
tax rate from 263 to 220 and a  
240 million adjustment in respect of  
prior periods following the settlement of  
a transfer pricing matter excluding these 
benefits the reported tax rate for 2012 
was 241 further details relating to 
movements in our taxation balances  
are included in note 4 to the financial 
statements from page 143
total comprehensive income for  
2013 decreased by 3947 million  
to 2458 million this was driven by  
the decrease in profit for the year of 
3699 million and a decrease of 
248 million in other comprehensive 
income which was principally due to  
effects of movements in exchange rates  
on our consolidated results 
78 astrazeneca annual report and form 20f information 2013
strategic report  financial review cash generated from operating  
activities was 7 400 million in the year  
ended 31 december 2013 compared  
with 6948 million in 2012 lower tax and 
interest payments partially offset the lower 
operating profit in 2013 after adjusting for 
impairments and noncash costs while 
working capital movements and a oneoff 
pension fund contribution drove higher 
outflows in the prior year 
investment cash outflows of 3112 million 
2012 5607 million included 1158 million 
on completion of the acquisitions of pearl 
therapeutics omthera amplimmune and 
spirogen and 1316 million for the 
purchase of other intangible assets  
the comparative period of 2012 included 
the cash outflows for the purchase of  
ardea 1187 million and intangible assets 
associated with our collaboration with  
bms on amylin 3358 million
net cash distributions to shareholders  
were 2979 million through dividends of 
3461 million partially offset by proceeds 
from the issue of shares of 482 million 
at 31 december 2013 outstanding  
gross debt interestbearing loans  
and borrowings was 10376 million  
2012 10310 million of the gross  
debt outstanding at 31 december 2013 
1788 million is due within one year 
2012 901 million 
net funds of 39 million have increased  
by 1408 million during the year as a result 
of the net cash inflow as described above
offbalance sheet transactions and 
commitments 
we have no offbalance sheet 
arrangements and our derivative activities 
are nonspeculative the table below sets 
out our minimum contractual obligations  
at the year end
payments due by period
less than 
1 year 
m 
13 years 
m 
35 years 
m
over
5 years 
m
2013
total
m
2012
total 
m 
bank loans and other borrowings
1
2210 1875 2433 10497 17015 17316
finance leases 34 64 21 – 119 101
operating leases 92 150 98 110 450 434
contracted capital expenditure 481 – – – 481 245
total 2817 2089 2552 10607 18065 18096
1
 bank loans and other borrowings include interest charges payable in the period as detailed in note 23 to the financial statements on page 169
cash flow and liquidity – 2013 
all data in this section is on a reported basis 
summary cash flows
2013
m
2012
m
2011
m
net debtfunds brought forward at 1 january 1369 2849 3653
earnings before interest tax depreciation amortisation and impairment ebitda 8295 10666 15345
profit on disposal of astra tech – – 1483
ebitda before profit on disposal of astra tech 8295 10666 13862
movement in working capital and shortterm provisions 166 706 897
tax paid 844 2043 3999
interest paid 475 545 548
noncash and other movements 258 424 597
net cash available from operating activities 7400 6948 7821
purchase of intangibles net 1281 3947 458
other capital expenditure net 673 473 737
acquisitions of business operations 1158 1187 – 
net cash received on disposal of astra tech – – 1772
investments 3112 5607 577
dividends 3461 3665 3764
net share proceedsrepurchases 482 2206 5606
distributions 2979 5871 9370
other movements 99 312 168
net fundsdebt carried forward at 31 december 39 1369 2849
net fundsdebt reconciliation
2013
m
2012
m
2011
m
cash and cash equivalents 9217 7701 7571
shortterm investments 796 823 4248
net derivative financial instruments 402 417 358
cash shortterm investments and derivatives 10415 8941 12177
overdraft and shortterm borrowings 992 879 221
finance leases 102 84 –
current instalments of loans 766 – 1769
loans due after one year 8516 9347 7338 
loans and borrowings 10376 10310 9328
net fundsdebt 39 1369 2849
additional information financial statements corporate governance strategic report
79 astrazeneca annual report and form 20f information 2013 in 2013 net assets decreased by 693 million 
to 23253 million the decrease in net 
assets is broadly as a result of the group 
profit of 2571 million being offset by 
dividends of 3499 million
property plant and equipment
property plant and equipment decreased 
by 271 million to 5818 million additions 
of 816 million 2012 772 million were 
offset by depreciation of 906 million  
2012 1023 million impairments of  
101 million 2012 nil and disposals  
of 82 million 2012 224 million
goodwill and intangible assets
the group’s goodwill of 9981 million 
2012 9898 million principally arose on 
the acquisition of medimmune in 2007 and 
the restructuring of our us joint venture  
with merck in 1998 goodwill of 77 million 
arising on our acquisitions of pearl 
therapeutics and amplimmune as detailed 
in note 22 to the financial statements from 
page 166 was capitalised in 2013
intangible assets amounted to 16047 
million at 31 december 2013 2012 
16448 million intangible asset additions 
were 3217 million in 2013 2012 
6916 million including product rights 
acquired in our acquisitions of pearl 
therapeutics 985 million omthera 
526 million amplimmune 534 million 
and spirogen 371 million amortisation  
in the year was 1779 million 2012 
1296 million impairment charges in the 
year amounted to 2082 million 2012 
199 million including a 1758 million 
charge on our diabetes product bydureon 
and a 136 million impairment charge 
following our decision not to proceed with 
regulatory filings for fostamatinib these 
impairment charges were partially offset by 
a 285 million impairment reversal following 
enrolment of the first patient in the first of 
several phase iii clinical programmes for 
olaparib an impairment provision previously 
having being taken against this compound 
in 2011 
further details of our additions to intangible 
assets and impairments recorded are 
included in note 9 to the financial 
statements from page 150 
receivables payables and provisions
trade receivables decreased by 
182 million to 5514 million in line  
with lower revenues in 2013 
prepayments and accrued income 
increased by 1988 million driven 
principally by an increase in prepayments 
following the modification of the royalty 
structure under our global licence 
agreement for crestor which now includes 
fixed minimum and maximum annual 
royalty payments to shionogi these  
future royalties have been recognised  
within payables and as a prepayment 
prepayments also increased due to 
payments made to moderna therapeutics 
and immunocore during the year on new 
research collaborations 
trade and other payables increased by 
2492 million in 2013 to 12714 million 
with increases in other payables of  
2277 million due to the recognition of 
future royalty payments on crestor as 
detailed above and contingent consideration 
of 532 million recognised on the acquisitions 
of pearl therapeutics 149 million 
omthera 62 million amplimmune  
153 million and spirogen 168 million
the increase in provisions of 45 million  
in 2013 includes 771 million of additional 
charges recorded in the year offset by 
681 million of cash payments included 
within the 771 million of charges for  
the year is 652 million for our global 
restructuring initiative and 23 million in 
respect of legal charges cash payments 
include 532 million for our global 
restructuring programme further details  
of the charges made against provisions  
are contained in notes 17 and 25 to the 
financial statements on page 158 and  
176 to 183 respectively
tax payable and receivable
net income tax payable has increased by 
523 million to 2582 million principally 
due to cash tax timing differences and an 
increase in accruals for tax contingencies 
the tax receivable balance of 494 million 
comprises tax owing to astrazeneca  
from certain governments expected to be 
received on settlements of transfer pricing 
audits and disputes see note 25 to the 
financial statements from page 176 and  
cash tax timing differences net deferred 
tax liabilities increased by 157 million  
in the year
retirement benefit obligations
net retirement benefit obligations 
decreased by 10 million in 2013 employer 
contributions to the pension scheme of 
369 million were offset by current and 
past service cost charges of 204 million 
net financing costs of 79 million and 
exchange movements 
approximately 97 of the group’s 
obligations are concentrated in the uk  
the us sweden and germany in recent 
years the group has undertaken several 
initiatives to reduce its net pension 
obligation exposure for the uk defined 
benefit pension scheme which is 
astrazeneca’s largest defined benefit 
financial position – 2013
all data in this section is on a reported basis
summary statement of financial position
2013
m
movement
m
2012
m
movement
m
2011
m
property plant and equipment 5818 271 6089 336 6425
goodwill and intangible assets 26028 318 26346 5504 20842
inventories 1909 152 2061 209 1852
trade and other receivables 9746 1765 7981 773 8754
trade and other payables 12714 2492 10222 862 9360
provisions 1389 45 1344 518 1862
net income tax payable 2582 523 2059 275 2334
net deferred tax liabilities 1622 157 1465 244 1221
retirement benefit obligations 2261 10 2271 409 2680
noncurrent other investments 281 82 199 2 201
net fundsdebt 39 1408 1369 4218 2849
net assets 23253 693 23946 480 23466
 restated on the adoption of ias 19 2011 as detailed in the group accounting policies section on page 136
80 astrazeneca annual report and form 20f information 2013
strategic report  financial review scheme these initiatives have included 
agreeing funding principles for cash 
contributions to be paid into the uk 
pension scheme to target a level of assets 
in excess of the current expected cost  
of providing benefits and in 2010 
amendments to the scheme to freeze 
pensionable pay at 30 june 2010 levels  
in addition to the cash contributions  
to be paid into the uk pension scheme 
astrazeneca makes contributions to an 
escrow account which is held outside the 
pension scheme the escrow account 
assets are payable to the fund in agreed 
circumstances for example in the event of 
astrazeneca and the pension fund trustee 
agreeing a change to the current longterm 
investment strategy 
further details of the group’s pension 
schemes are included in note 18 to the 
financial statements from page 159
commitments and contingencies
the group has commitments and 
contingencies which are accounted for in 
accordance with the accounting policies 
described in the financial statements in  
the group accounting policies section  
from page 136 the group also has 
taxation contingencies these are 
described in the taxation section in the 
critical accounting policies and estimates 
section on page 87 and in note 25 to the 
financial statements from page 176
research and development 
collaboration payments
details of future potential rd collaboration 
payments are also included in note 25  
to the financial statements from page 176  
as detailed in note 25 to the financial 
statements payments to our collaboration 
partners may not become payable due to 
the inherent uncertainty in achieving the 
development and revenue milestones linked 
to the future payments as part of our 
overall externalisation strategy we may 
enter into further collaboration projects  
in the future that may include milestone 
payments and therefore as certain 
milestone payments fail to crystallise due to 
for example development not proceeding 
they may be replaced by potential 
payments under new collaborations
investments divestments and capital 
expenditure 
the group has completed over 150 major 
business development transactions over 
the past three years five of which were 
accounted for as business acquisitions 
under ifrs 3 ‘business combinations’ 
being the acquisitions of pearl therapeutics 
omthera amplimmune and spirogen in 
2013 and ardea in 2012 and all others 
being inlicences strategic alliances and 
collaborations further details of our 
business acquisitions and disposals in the 
past three years are contained in note 22  
to the financial statements from page 166 
details of our significant externalisation 
transactions are given below
  in march 2013 astrazeneca signed an 
exclusive agreement with moderna 
therapeutics to discover develop and 
commercialise pioneering medicines 
based on messenger rna therapeutics 
for the treatment of serious cardiovascular 
metabolic and renal diseases as well  
as cancer under the terms of the 
agreement astrazeneca made an 
upfront payment of 240 million 
astrazeneca will have exclusive access 
to select any target of its choice in 
cardiometabolic and renal diseases  
as well as selected targets in oncology 
over a period of up to five years for 
subsequent development of messenger 
rna therapeutics in addition moderna 
therapeutics is entitled to an additional 
180 million for the achievement of  
three technical milestones through  
this agreement astrazeneca has the 
option to select up to 40 drug products 
for clinical development and moderna 
therapeutics will be entitled to 
development and commercial milestone 
payments as well as royalties on drug 
sales ranging from high single digits  
to low double digits for each product 
astrazeneca will lead the preclinical 
clinical development and commercialisation 
of therapeutics resulting from the 
agreement and moderna therapeutics 
will be responsible for designing and 
manufacturing the messenger rna 
therapeutics against selected targets
  in july 2013 astrazeneca entered into 
a strategic collaboration with fibrogen 
to develop and commercialise roxadustat 
fg4592 a firstinclass oral compound 
in latestage development for the 
treatment of anaemia associated with 
chronic kidney disease ckd and 
endstage renal disease esrd this 
broad collaboration focuses on the us 
china and all major markets excluding 
japan europe the cis the middle east 
and south africa which are covered  
by an existing agreement between 
fibrogen and astellas the astrazeneca
fibrogen joint effort will be focused on 
the development of roxadustat to treat 
anaemia in ckd and esrd and may be 
extended to other anaemia indications 
astrazeneca and fibrogen plan to 
undertake an extensive roxadustat phase 
iii development programme for the us 
and to initiate phase iii trials in china with 
anticipated regulatory filings in china in 
2015 and in the us in 2017  astrazeneca 
will pay fibrogen committed upfront and 
subsequent noncontingent payments 
totalling 350 million as well as potential 
future developmentrelated milestone 
payments of up to 465 million and 
potential future salesrelated milestone 
payments in addition to tiered royalty 
payments on future sales of roxadustat  
in the low 20 range additional 
development milestones will be payable 
for any subsequent indications which  
the companies choose to pursue 
astrazeneca will be responsible for  
the us commercialisation of roxadustat 
with fibrogen undertaking specified 
promotional activities in the esrd 
segment in this market the companies 
will also cocommercialise roxadustat in 
china where fibrogen will be responsible 
for clinical trials regulatory matters 
manufacturing and medical affairs and 
astrazeneca will oversee promotional 
activities and commercial distribution
  in april 2012 astrazeneca announced  
an agreement to jointly develop and 
commercialise five monoclonal 
antibodies from amgen’s clinical 
inflammation portfolio amg 139 amg 
157  amg 181 amg 557 and brodalumab 
amg 827 under the terms of the 
agreement astrazeneca made a  
50 million upfront payment and the 
companies share both costs and profits 
approximately 65 of costs for the  
2012 to 2014 period are funded by 
astrazeneca thereafter the companies 
will split costs equally in addition 
astrazeneca will make development 
milestone payments up to a maximum  
of 30 million up to launch on 
commercialisation amgen will retain a 
lowsingledigit royalty for brodalumab 
and a midsingledigit royalty for the rest 
of the portfolio after which the companies 
will share profits equally
  in january 2007  astrazeneca signed 
an exclusive codevelopment and 
copromotion agreement with bms for 
the development and commercialisation 
of onglyza a dppiv and farxigaforxiga 
a selective sodiumglucose co
transporter 2 sglt2 inhibitor both 
for the treatment of type 2 diabetes in 
august 2012 astrazeneca expanded its 
diabetes alliance with bms to incorporate 
the development and marketing of 
amylin’s portfolio of diabetes products 
the portfolio of collaboration products  
in amylin includes byetta exenatide 
injection and bydureon exenatide 
extendedrelease for injectable 
suspensionexenatide 2mg powder  
and solvent for prolonged release 
suspension for injection symlin 
pramlinitide acetate injection and 
metreleptin a leptin analogue astrazeneca 
expanded the alliance for a total 
consideration of 37 billion in december 
2013 astrazeneca announced an 
agreement under which astrazeneca 
additional information financial statements corporate governance strategic report
81 astrazeneca annual report and form 20f information 2013 capitalisation and shareholder return 
dividend for 2013
 pence sek payment date
first interim dividend 090 592 592 16 september 2013
second interim dividend 190 1168 1241 24 march 2014
total 280 1760 1833
summary of shareholder distributions 
shares 
repurchased 
million
cost 
m
dividend per
share

dividend 
cost 
m
shareholder
distributions
m
2000 94 352 070 1236 1588
2001 235 1080 070 1225 2305 
2002 283 1190 070 1206 2396 
2003 272 1154 0795 1350 2504 
2004 501 2212 094 1555 3767 
2005 677 3001 130 2068 5069 
2006 722 4147 172 2649 6796 
2007 799 4170 187 2740 6910 
2008 136 610 205 2971 3581 
2009 – – 230 3339 3339 
2010 537 2604 255 3604 6208
2011 1274 6015 280 3653 9668
2012 578 2635 280 3496 6131
2013 – – 280 3516
1
3516
total 6108 29170 24025 34608 63778
1
 total dividend cost estimated based upon number of shares in issue at 31 december 2013
acquired the entirety of bms’s interests 
in the companies’ diabetes alliance for  
an initial consideration of 27 billion  
on completion and up to 14 billion in 
regulatory launch and salesrelated 
payments astrazeneca has also agreed 
to pay various salesrelated royalty 
payments up until 2025 in addition 
astrazeneca may make payments up  
to 225 million when certain assets  
are subsequently transferred the 
business combination completed on  
1 february 2014 and provides 
astrazeneca with 100 ownership  
of the intellectual property and global 
rights for the development manufacture 
and commercialisation of the diabetes 
business further details of this business 
combination are included in note 28 to 
the financial statements from page 184 
the group determines the above business 
development transactions to be significant 
using a range of factors we look at the 
specific circumstances of the individual 
externalisation arrangement and apply 
several quantitative and qualitative criteria 
because we consider business development 
transactions to be an extension of our  
rd strategy the expected total value  
of development payments under the 
transaction and its proportion of our annual 
rd spend both of which are proxies for 
overall rd effort and cost are important 
elements of the significance determination 
other quantitative criteria we apply include 
without limitation expected levels of future 
sales the possible value of milestone 
payments and the resources used for 
commercialisation activities for example 
the number of staff qualitative factors we 
consider include without limitation new 
market developments new territories new 
areas of research and strategic implications
in aggregate payments capitalised under 
the group’s externalisation arrangements 
other than those detailed above amounted 
to 301 million in 2013 156 million in  
2012 and 123 million in 2011 the group 
recognised other income in respect of  
other externalisation arrangements totalling 
20 million in 2013 255 million in 2012 
including 250 million of income from an 
agreement with pfizer for otc rights for 
nexium and 18 million in 2011
capitalisation
the total number of shares in issue at 
31 december 2013 was 1257 million 
104 million ordinary shares were issued  
in consideration of share option exercises 
for a total of 451 million there were no 
share repurchases in 2013 shareholders’ 
equity decreased by 507 million to 
23224 million at the year end non
controlling interests decreased to 
29 million 2012 215 million mainly 
driven by changes in noncontrolling 
interests’ shareholdings in japan
dividend and share repurchases
the board has recommended a second 
interim dividend of 190 1168 pence 
1241 sek to be paid on 24 march 2014 
this brings the full year dividend to 280 
1760 pence 1833 sek
this dividend is consistent with the 
progressive dividend policy by which the 
board intends to maintain or grow the 
dividend each year
the board regularly reviews its distribution 
policy and its overall financial strategy to 
continue to strike a balance between the 
interests of the business our financial 
creditors and our shareholders having 
regard for business investment funding  
the progressive dividend policy and 
meeting our debt service obligations the 
board currently believes it is appropriate  
to continue the suspension of the share 
repurchase programme which was 
announced in october 2012
future prospects 
we believe challenging market conditions 
will persist in 2014 including continued 
government interventions on price the 
revenue impact from the loss of exclusivity 
will also continue to affect our performance 
including the anticipated nexium us first 
generic launch in may 2014
financial risk management
financial risk management policies
insurance
our risk management processes are 
described in the managing risk section from 
page 199 these processes enable us to 
identify risks that can be partly or entirely 
mitigated through the use of insurance  
we negotiate best available premium rates 
with insurance providers on the basis of our 
extensive risk management procedures  
in the current insurance market the level  
82 astrazeneca annual report and form 20f information 2013
strategic report  financial review of cover is decreasing while premium rates 
are increasing rather than simply paying 
higher premiums for lower cover we focus 
our insurance resources on the most critical 
areas or where there is a legal requirement 
and where we can get best value for 
money risks to which we pay particular 
attention include business interruption 
directors’ and officers’ liability and 
property damage insurance for product 
liability has not been available on 
commercially acceptable terms for several 
years and the group has not purchased in 
the market product liability insurance since 
february 2006
taxation
tax risk management forms an integrated 
part of the group’s risk management 
processes our tax strategy is to manage 
tax risks and tax costs in a manner 
consistent with shareholders’ best 
longterm interests taking into account 
both economic and reputational factors  
we draw a distinction between tax planning 
using artificial structures and optimising tax 
treatment of business transactions and we 
engage only in the latter
treasury
the principal financial risks to which the 
group is exposed are those arising from 
liquidity interest rate foreign currency  
and credit the group has a centralised 
treasury function to manage these risks  
in accordance with boardapproved 
policies specifically liquidity risk is 
managed through maintaining access  
to a number of sources of funding to  
meet anticipated funding requirements 
including committed bank facilities and 
cash resources interest rate risk is 
managed through maintaining a debt 
portfolio that is weighted towards fixed 
rates of interest accordingly the group’s 
net interest charge is not significantly 
affected by movements in floating rates  
of interest we do not currently hedge  
the impact on earnings and cash flow  
of changes in exchange rates with the 
exception of the currency exposure that 
arises between the booking and settlement 
dates on nonlocal currency purchases  
and sales by subsidiaries and the external 
dividend credit risk is managed through 
setting and monitoring credit limits 
appropriate for the assessed risk of  
the counterparty
our capital and risk management 
objectives and policies are described in 
further detail in note 23 to the financial 
statements from page 169 and in the risk 
section from page 199
sensitivity analysis of the group’s  
exposure to exchange rate and interest  
rate movements is also detailed in note 23 
to the financial statements from page 169
critical accounting policies and 
estimates
our financial statements are prepared  
in accordance with ifrss as adopted by 
the eu adopted ifrs and as issued by  
the iasb and the accounting policies 
employed are set out in the group 
accounting policies section in the financial 
statements from page 136 in applying  
these policies we make estimates and 
assumptions that affect the reported 
amounts of assets and liabilities and 
disclosure of contingent assets and 
liabilities the actual outcome could differ 
from those estimates some of these 
policies require a high level of judgement 
because the areas are especially subjective 
or complex we believe that the most 
critical accounting policies and significant 
areas of judgement and estimation are in
  revenue recognition 
  research and development 
  impairment testing of goodwill and 
intangible assets 
  litigation 
  postretirement benefits 
  taxation
revenue recognition
revenue is recorded at the invoiced 
amount excluding intercompany sales  
and valueadded taxes less movements  
in estimated accruals for rebates and 
chargebacks given to managedcare and 
other customers and product returns – a 
particular feature in the us the impact in 
the rest of the world is not significant it is 
the group’s policy to offer a credit note for 
all returns and to destroy all returned stock 
in all markets cash discounts for prompt 
payment are also deducted from sales 
revenue is recognised at the point of 
delivery which is usually when title passes 
to the customer either on shipment or  
on receipt of goods by the customer 
depending on local trading terms income 
from royalties and from disposals of ip  
brands and product lines is included in 
other operating income
rebates chargebacks and returns  
in the us
when invoicing sales in the us we estimate 
the rebates and chargebacks that we 
expect to pay these rebates typically  
arise from sales contracts with third party 
managedcare organisations hospitals 
longterm care facilities group purchasing 
organisations and various federal or state 
programmes medicaid ‘best price’ 
contracts supplemental rebates etc  
they can be classified as follows
  chargebacks where we enter into 
arrangements under which certain 
parties typically hospitals the 
department of veterans affairs public 
health service covered entities and the 
department of defense are able to buy 
products from wholesalers at the lower 
prices we have contracted with them 
the chargeback is the difference 
between the price we invoice to the 
wholesaler and the contracted price 
charged by the wholesaler chargebacks 
are paid directly to the wholesalers
  regulatory including medicaid and other 
federal and state programmes where we 
pay rebates based on the specific terms 
of agreements with the us department 
of health and human services and with 
individual states which include product 
usage and information on best prices 
and average market prices benchmarks
  contractual under which entities such as 
third party managedcare organisations 
longterm care facilities and group 
purchasing organisations are entitled  
to rebates depending on specified 
performance provisions which vary  
from contract to contract
the effects of these deductions on our  
us pharmaceuticals revenue and the 
movements on us pharmaceuticals 
revenue provisions are set out overleaf
accrual assumptions are built up on a 
productbyproduct and customerby
customer basis taking into account 
specific contract provisions coupled with 
expected performance and are then 
aggregated into a weighted average rebate 
accrual rate for each of our products 
accrual rates are reviewed and adjusted  
on a monthly basis there may be further 
adjustments when actual rebates are 
invoiced based on utilisation information 
submitted to us in the case of contractual 
rebates and claimsinvoices are received 
in the case of regulatory rebates and 
chargebacks we believe that we have 
made reasonable estimates for future 
rebates using a similar methodology to that 
of previous years inevitably however such 
estimates involve judgements on aggregate 
future sales levels segment mix and the 
customers’ contractual performance
managedcare and group purchasing 
organisation rebate charges increased by 
1321 million in 2013 2012 160 million 
2011 682 million mainly due to the  
higher contracted rates in the commercial 
and medicare part d segments due to 
pricing pressures and the impact of 2013 
price increases
cash discounts are offered to customers  
to encourage prompt payment accruals 
are calculated based on historical 
experience and are adjusted to reflect 
actual experience
additional information financial statements corporate governance strategic report
83 astrazeneca annual report and form 20f information 2013 gross to net sales – us pharmaceuticals
2013
m
2012
m
2011
m
gross sales 21345 20747 23613
chargebacks 2449 2261 1958
regulatory – us government and state programmes 1435 1426 2293
contractual – managedcare and group purchasing organisation rebates 6918 5597 5437
cash and other discounts 399 401 452
customer returns 112 182 72
other 341 273 276
net sales 9691 10607 13125
movement in provisions – us pharmaceuticals 
brought 
forward at 
1 january 
2013 
m
provision for
current year 
m 
adjustment in 
respect of 
prior years 
m 
returns and
payments 
m 
carried 
forward at 
31 december
2013
m
chargebacks 313 2439 10 2407 355
regulatory – us government and state programmes 825 1447 12 1476 784
contractual – managedcare and group purchasing organisation rebates 1348 6951 33 6552 1714
cash and other discounts 33 399 – 400 32
customer returns 211 99 13 101 222
other 45 341 – 312 74
total 2775 11676 22 11248 3181
brought 
forward at 
1 january 
2012 
m
provision for
current year 
m 
adjustment in 
respect of 
prior years 
m 
returns and
payments 
m 
carried 
forward at 
31 december
2012
m
chargebacks 395 2296 35 2343 313
regulatory – us government and state programmes 1290 1585 159 1891 825
contractual – managedcare and group purchasing organisation rebates 1600 5578 19 5849 1348
cash and other discounts 41 401 – 409 33
customer returns 121 117 65 92 211
other 80 273 – 308 45
total 3527 10250 110 10892 2775
brought 
forward at 
1 january 
2011 
m
provision for
current year 
m 
adjustment in 
respect of 
prior years 
m 
returns and
payments 
m 
carried 
forward at 
31 december
2011
m
chargebacks 523 2012 54 2086 395
regulatory – us government and state programmes 1122 2364 71 2125 1290
contractual – managedcare and group purchasing organisation rebates 1194 5452 15 5031 1600
cash and other discounts 41 452 – 452 41
customer returns 133 75 3 84 121
other 64 276 – 260 80
total 3077 10631 143 10038 3527
84 astrazeneca annual report and form 20f information 2013
strategic report  financial review industry practice in the us allows 
wholesalers and pharmacies to return 
unused stocks within six months of and  
up to 12 months after shelflife expiry  
the customer is credited for the returned 
product by the issuance of a credit note 
returned products are not exchanged for 
products from inventory and once a return 
claim has been determined to be valid  
and a credit note has been issued to the 
customer the returned products are 
destroyed at the point of sale in the us  
we estimate the quantity and value of 
products which may ultimately be returned 
our returns accruals in the us are based 
on actual experience our estimate is  
based on the preceding 12 months for 
established products together with 
marketrelated information such as 
estimated stock levels at wholesalers and 
competitor activity which we receive via 
third party information services for newly 
launched products we use rates based  
on our experience with similar products  
or a predetermined percentage
for products facing generic competition 
such as atacand and the toprolxl 
franchise in the us our experience is that 
we usually lose the ability to estimate the 
levels of returns from wholesalers with the 
same degree of precision that we can for 
products still subject to patent protection 
this is because we have limited or no 
insight into a number of areas the actual 
timing of the generic launch for example a 
generic manufacturer may or may not have 
produced adequate prelaunch inventory 
the pricing and marketing strategy of the 
competitor the takeup of the generic and 
in cases where a generic manufacturer has 
approval to launch only one dose size in a 
market of several dose sizes the likely level 
of switching from one dose to another 
under our accounting policy revenue is 
recognised only when the amount of the 
revenue can be measured reliably our 
approach in meeting this condition for 
products facing generic competition will 
vary from product to product depending  
on the specific circumstances
the closing adjustment in respect of  
prior years increased 2013 net us 
pharmaceuticals revenue by 02 2012 
increased revenue by 10 2011 increased 
revenue by 11 however taking into 
account the adjustments affecting both the 
current and the prior year 2012 revenue 
was reduced by 08 and 2011 revenue 
was reduced by 03 by adjustments 
between years
we have distribution service agreements 
with major wholesaler buyers which serve 
to reduce the speculative purchasing 
behaviour of the wholesalers and reduce 
shortterm fluctuations in the level of 
inventory they hold we do not offer any 
incentives to encourage wholesaler 
speculative buying and attempt where 
possible to restrict shipments to underlying 
demand when such speculation occurs
sales of intangible assets
a consequence of charging all internal rd 
expenditure to the income statement in the 
year in which it is incurred which is normal 
practice in the pharmaceutical industry  
is that we own valuable intangible assets 
which are not recorded on the balance 
sheet we also own acquired intangible 
assets which are included on the balance 
sheet as a consequence of regular reviews 
of product strategy from time to time we 
sell such assets and generate income 
sales of product lines are often accompanied 
by an agreement on our part to continue 
manufacturing the relevant product for a 
reasonable period often about two years 
while the purchaser constructs its own 
manufacturing facilities the contracts 
typically involve the receipt of an upfront 
payment which the contract attributes  
to the sale of the intangible assets and 
ongoing receipts which the contract 
attributes to the sale of the product we 
manufacture in cases where the 
transaction has two or more components 
we account for the delivered item for 
example the transfer of title to the 
intangible asset as a separate unit of 
accounting and record revenue on delivery 
of that component provided that we can 
make a reasonable estimate of the fair value 
of the undelivered component where the 
fair market value of the undelivered 
component for example a manufacturing 
agreement exceeds the contracted  
price for that component we defer  
an appropriate element of the upfront 
consideration and amortise this over the 
performance period however where  
the fair market value of the undelivered 
component is equal to or lower than the 
contracted price for that component we 
treat the whole of the upfront amount as 
being attributable to the delivered intangible 
assets and recognise that part of the 
revenue upon delivery no element of  
the contracted revenue related to the 
undelivered component is allocated to the 
sale of the intangible asset this is because 
the contracted revenue relating to the 
undelivered component is contingent on 
future events such as sales and so cannot 
be anticipated
research and development
our business is underpinned by our 
marketed products and development 
portfolio the rd expenditure on internal 
activities to generate these products  
is generally charged to profit in the year  
that it is incurred purchases of ip and 
product rights to supplement our rd 
portfolio are capitalised as intangible 
assets further details of this policy  
are included in the group accounting 
policies section of our financial statements 
from page 136 such intangible assets are 
amortised from the launch of the underlying 
products and are tested for impairment 
both before and after launch this policy  
is in line with practice adopted by major 
pharmaceutical companies
impairment testing of goodwill and 
intangible assets
we have significant investments in  
goodwill and intangible assets as a result of 
acquisitions of businesses and purchases 
of assets such as product development 
and marketing rights
details of the estimates and assumptions 
we make in our annual impairment testing 
of goodwill are included in note 8 to  
the financial statements on page 149  
the group including acquisitions is 
considered a single cashgenerating unit 
for impairment purposes no impairment  
of goodwill was identified
impairment reviews have been carried  
out on all intangible assets that are in 
development and not being amortised all 
major intangible assets acquired during the 
year and all intangible assets that have had 
indications of impairment during the year 
sales forecasts and specific allocated  
costs which have both been subject to 
appropriate senior management signoff 
are discounted using appropriate rates 
based on astrazeneca’s riskadjusted 
pretax weighted average cost of capital 
our weighted average cost of capital 
reflects factors such as our capital structure 
and our costs of debt and equity in 
building to the range of rates used in our 
internal investment appraisal of future 
projects and capital investment decisions 
we adjust our weighted average cost  
of capital for other factors which reflect 
without limitation local matters such as  
risk on a casebycase basis
additional information financial statements corporate governance strategic report
85 astrazeneca annual report and form 20f information 2013 a significant portion of our investments  
in intangible assets and goodwill arose  
from the restructuring of the joint venture 
with merck in 1998 the acquisition of 
medimmune in 2007  and the payments  
to partially retire merck’s interests in  
our products in the us in 2008 and  
2010 in addition our recent business 
combinations as detailed in note 22 to  
the financial statements from page 166 
have added significant product marketing 
and distribution intangible rights to our 
intangible asset portfolio as detailed  
earlier in this section of the annual report 
we recorded an impairment charge of 
1758 million against the intangible  
asset relating to bydureon in 2013 we  
also recorded an impairment reversal of 
285 million on our intangible asset for 
olaparib following commencement of the 
first of several phase iii clinical programmes 
for this asset we are satisfied that the 
carrying values of our intangible assets  
as at 31 december 2013 are fully justified 
by estimated future cash flows the 
accounting for our intangible assets 
including details of our arrangements  
with merck and our collaboration with  
bms on amylin products is fully explained 
in note 9 to the financial statements  
from page 150 
further details of the estimates and 
assumptions we make in impairment 
testing of intangible assets are included  
in note 9 to the financial statements 
litigation
in the normal course of business 
contingent liabilities may arise from 
productspecific and general legal 
proceedings from guarantees or from 
environmental liabilities connected with our 
current or former sites where we believe 
that potential liabilities have a less than 50 
probability of crystallising or where we are 
unable to make a reasonable estimate of 
the liability we treat them as contingent 
liabilities these are not provided for but  
are disclosed in note 25 to the financial 
statements from page 176
in cases that have been settled or 
adjudicated or where quantifiable fines  
and penalties have been assessed and 
which are not subject to appeal or other 
similar forms of relief or where a loss  
is probable more than 50 assessed 
probability and we are able to make a 
reasonable estimate of the loss we indicate 
the loss absorbed or the amount of the 
provision accrued
where it is considered that the group is 
more likely than not to prevail or in the rare 
circumstances where the amount of the 
legal liability cannot be estimated reliably 
legal costs involved in defending the claim 
are charged to profit as they are incurred 
where it is considered that the group has  
a valid contract which provides the right  
to reimbursement from insurance or 
otherwise of legal costs andor all or part  
of any loss incurred or for which a provision 
has been established and we consider 
recovery to be virtually certain then the 
best estimate of the amount expected  
to be received is recognised as an asset
assessments as to whether or not to 
recognise provisions or assets and of the 
amounts concerned usually involve a series 
of complex judgements about future events 
and can rely heavily on estimates and 
assumptions astrazeneca believes that  
the provisions recorded are adequate 
based on currently available information 
and that the insurance recoveries recorded 
will be received however given the 
inherent uncertainties involved in assessing 
the outcomes of these cases and in 
estimating the amount of the potential 
losses and the associated insurance 
recoveries we could in future periods incur 
judgments or insurance settlements that 
could have a material adverse effect on  
our results in any particular period
the position could change over time and 
there can therefore be no assurance that 
any losses that result from the outcome of 
any legal proceedings will not exceed the 
amount of the provisions that have been 
booked in the accounts
although there can be no assurance 
regarding the outcome of legal 
proceedings we do not currently expect 
them to have a material adverse effect  
on our financial position but they could 
significantly affect our financial results  
in any particular period
postretirement benefits
we offer postretirement benefit plans 
which cover many of our employees around 
the world in keeping with local terms and 
conditions most of these plans are ‘defined 
contribution’ in nature where the resulting 
income statement charge is fixed at a set 
level or is a set percentage of employees’ 
pay however several plans mainly in the 
uk which has by far the largest single 
scheme the us and sweden are defined 
benefit plans where benefits are based  
on employees’ length of service and final 
salary typically averaged over one three or 
five years the uk and us defined benefit 
schemes were closed to new entrants in 
2000 all new employees in these countries 
are offered defined contribution schemes 
as detailed in the group accounting 
policies section of the financial statements 
from page 136 the group adopted the 
amendments to ias 19 ‘employee benefits’ 
in 2013 we continue to recognise all 
actuarial gains and losses immediately 
through other comprehensive income 
investment decisions in respect of defined 
benefit schemes are based on underlying 
actuarial and economic circumstances with 
the intention of ensuring that the schemes 
have sufficient assets to meet liabilities as 
they fall due rather than meeting accounting 
requirements the trustees follow a strategy 
of awarding mandates to specialist active 
investment managers which results in a 
broad diversification of investment styles 
and asset classes the investment 
approach is intended to produce less 
volatility in the plan asset returns
in assessing the discount rate applied to 
the obligations we have used rates on  
aa corporate bonds with durations 
corresponding to the maturities of those 
obligations except in sweden where we 
have used rates on mortgage bonds as  
the market in high quality corporate bonds 
is insufficiently deep
86 astrazeneca annual report and form 20f information 2013
strategic report  financial review in all cases the pension costs recorded  
in the financial statements are assessed in 
accordance with the advice of independent 
qualified actuaries but require the exercise 
of significant judgement in relation to 
assumptions for longterm price inflation 
and future salary and pension increases
further details of our accounting for 
postretirement benefit plans are included 
in note 18 to the financial statements  
from page 159
taxation
accruals for tax contingencies require 
management to make judgements and 
estimates in relation to tax audit issues  
and exposures amounts accrued are 
based on management’s interpretation  
of countryspecific tax law and the 
likelihood of settlement tax benefits are  
not recognised unless the tax positions  
are probable of being sustained once 
considered to be probable management 
reviews each material tax benefit to assess 
whether a provision should be taken 
against full recognition of the benefit on  
the basis of potential settlement through 
negotiation andor litigation all such 
provisions are included in current liabilities 
any recorded exposure to interest on tax 
liabilities is provided for in the tax charge
astrazeneca faces a number of transfer 
pricing audits in jurisdictions around the 
world and in some cases is in dispute with 
the tax authorities these disputes usually 
result in taxable profits being increased  
in one territory and correspondingly 
decreased in another our balance sheet 
positions for these matters reflect 
appropriate corresponding relief in the 
territories affected
further details of the estimates and 
assumptions we make in determining our 
recorded liability for transfer pricing audits 
and other tax contingencies are included in 
the tax section of note 25 to the financial 
statements on page 183
sarbanesoxley act section 404
as a consequence of our nyse listing 
astrazeneca is required to comply with 
those provisions of the sarbanesoxley act 
applicable to foreign issuers section 404  
of the sarbanesoxley act requires 
companies annually to assess and make 
public statements about the quality and 
effectiveness of their internal control over 
financial reporting as regards sarbanes
oxley act section 404 our approach is 
based on the committee of sponsoring 
organizations coso 1992 framework 
our approach to the assessment has  
been to select key transaction and financial 
reporting processes in our largest operating 
units and a number of specialist areas 
such as financial consolidation and 
reporting treasury operations and taxation 
so that in aggregate we have covered a 
significant proportion of each of the key line 
items in our financial statements each of 
these operating units and specialist areas 
has ensured that its relevant processes and 
controls are documented to appropriate 
standards taking into account in particular 
the guidance provided by the sec we 
have also reviewed the structure and 
operation of our ‘entity level’ control 
environment this refers to the overarching 
control environment including structure  
of reviews checks and balances that are 
essential to the management of a 
wellcontrolled business
the directors have concluded that our 
internal control over financial reporting is 
effective at 31 december 2013 and the 
assessment is set out in the directors’ 
responsibilities for and report on internal 
control over financial reporting on page 
127  kpmg audit plc has audited the 
effectiveness of our internal control over 
financial reporting at 31 december 2013 
and as noted in the auditor’s reports  
on the financial statements and on  
internal control over financial reporting 
sarbanesoxley act section 404 on page 
128 their report is unqualified
strategic report
the strategic report which has been 
prepared in accordance with the 
requirements of the companies act 2006 
comprises the following sections
  astrazeneca at a glance
  chairman’s statement
  chief executive officer’s review
  strategy
  business review
  therapy area review
  resources review
  financial review
and has been approved and signed on 
behalf of the board 
a c n kemp 
company secretary 
6 february 2014
additional information financial statements corporate governance strategic report
87 astrazeneca annual report and form 20f information 2013 this corporate governance 
report describes how the group 
is organised including the overall 
structure and principal roles and 
responsibilities of the board its 
committees and the set
board composition
the membership of the board at  
31 december 2013 and information about 
individual directors is contained in the board 
of directors section on pages 28 and 29
corporate governance
we have prepared this annual report with 
reference to the uk corporate governance 
code published by the uk financial 
reporting council frc in september 
2012 this corporate governance report 
together with other sections of this annual 
report describes how we apply the main 
principles of good governance in the uk 
corporate governance code we have 
complied throughout the accounting period 
with the provisions of the uk corporate 
governance code which is available on  
the frc’s website wwwfrccouk
leadership and responsibilities
the roles of chairman and ceo are  
split leif johansson our nonexecutive 
chairman is responsible for leadership of 
the board our ceo pascal soriot leads 
the set and has executive responsibility for 
running our business the board comprises 
10 nonexecutive directors including the 
chairman and two executive directors 
– the ceo pascal soriot and the cfo  
marc dunoyer
all directors are collectively responsible for 
the success of the group in addition the 
nonexecutive directors are responsible  
for exercising independent objective 
judgement in respect of board decisions 
and for scrutinising and challenging 
management the nonexecutive directors 
also have various responsibilities concerning 
the integrity of financial information internal 
controls and risk management
the board conducts an annual review  
of the group’s overall strategy the ceo  
the cfo and the set take the lead in 
developing our strategy which is then 
reviewed constructively challenged and 
approved by the board
john varley who joined the board as  
a nonexecutive director in 2006 was 
appointed as our senior independent 
nonexecutive director in april 2012  
the role of the senior independent 
nonexecutive director is to provide a 
sounding board for the chairman and  
to serve as an intermediary for the other 
directors when necessary the senior 
independent nonexecutive director is  
also available to shareholders if they have 
concerns that contact through the normal 
channels of chairman or executive directors 
has failed to resolve or for which such 
contact is inappropriate 
there are four principal board committees 
the audit committee the remuneration 
committee the nomination and governance 
committee and the science committee 
the membership and work of these 
committees is described below in addition 
there may from time to time be constituted 
ad hoc board committees for specific 
projects or tasks in these cases the scope 
and responsibilities of the committee are 
documented the board provides adequate 
resources to enable each committee to 
undertake its duties
reserved matters and delegation  
of authority
the board maintains and periodically 
reviews a list of matters that are reserved  
to and can only be approved by the board 
these include the appointment termination 
and remuneration of any director approval 
of the annual budget approval of any item 
of fixed capital expenditure or any proposal 
for the acquisition or disposal of an 
investment or business which exceeds  
150 million the raising of capital or loans 
by the company subject to certain 
exceptions the giving of any guarantee  
in respect of any borrowing of the company 
and allotting shares of the company  
the matters that have not been expressly 
reserved to the board are either delegated 
by the board to its committees or to  
the ceo
the ceo is responsible to the board  
for the management development and 
performance of our business for those 
matters in respect of which he has been 
delegated authority from the board 
although the ceo retains full responsibility 
for the authority delegated to him by  
the board he has established and chairs 
the set which is the vehicle through which 
he exercises that authority in respect of  
our business
the roles of the board the board 
committees the chairman and the ceo 
are documented as are the board’s 
reserved powers and delegated authorities
operation of the board 
the board is responsible for setting our 
strategy and policies oversight of risk  
and corporate governance and monitors 
progress towards meeting our objectives 
and annual plans the board discharges 
these responsibilities through a programme 
corporate 
governance report
leif johansson 
chairman
88 astrazeneca annual report and form 20f information 2013
corporate governance board effectiveness
composition of the board  
succession planning and diversity
the nomination and governance 
committee and where appropriate the full 
board regularly review the composition of 
the board and the status of succession to 
both senior executive management and 
boardlevel positions directors have regular 
contact with and access to succession 
candidates for senior executive 
management positions
the board aims to maintain a balance  
in terms of the range of experience and 
skills of individual board members which 
includes relevant international business 
pharmaceutical industry and financial 
experience as well as appropriate scientific 
and regulatory knowledge the biographies 
of board members set out on pages 28  
and 29 give more information about current 
directors in this respect the board views 
as part of the business of each board 
meeting the ceo typically submits a 
progress report giving details of business 
performance and progress against the 
goals the board has approved to ensure 
that the board has good visibility of the  
key operating decisions of the business 
members of the set attend board meetings 
on a regular basis and board members 
meet other senior executives throughout the 
year the board also receives accounting 
and other management information about 
our resources and presentations from 
internal and external speakers on legal 
governance and regulatory developments 
at the end of board meetings the 
nonexecutive directors meet without the 
executive directors present to review and 
discuss any matters that have arisen during 
the meeting andor such other matters as 
may appear to the nonexecutive directors 
to be relevant in properly discharging their 
duty to act independently
of meetings that includes regular reviews of 
financial performance and critical business 
issues and the formal annual strategy 
review day the board also aims to ensure 
that a good dialogue with our shareholders 
is maintained and that their issues and 
concerns are understood and considered
the board held 11 meetings in 2013 
including its usual annual strategy review 
four of those meetings were telephone  
or in one case videoconference meetings 
some convened at short notice at which 
business development transactions were 
discussed and approved all of the meetings 
held in person took place in london uk 
with the exception of the meeting in july 
2013 which took place at medimmune’s 
site in cambridge uk and the meeting  
in september 2013 which took place  
at medimmune’s site in gaithersburg 
maryland us the board is currently 
scheduled to meet six times in 2014  
and will meet at such other times as  
may be required to conduct business
length of tenure of  
nonexecutive directors years
directors’ nationalities
  under 3 years 3 
leif johansson  
geneviève berger  
graham chipchase
  3 – 6 y e a r s  3 
shriti vadera 
bruce burlington  
rudy markham
  6–9 years 3 
jeanphilippe courtois  
john varley  
nancy rothwell 
  9 y ea r s  1 
marcus wallenberg
gender split  
of directors
 male 9
 female 3
 american 1
 british 5
 french 4
 swedish 2
additional information financial statements corporate governance strategic report
89 astrazeneca annual report and form 20f information 2013
“ it is my role as chairman to lead 
the board effectively to my mind 
good governance is at the heart 
of that”  gender nationality and cultural diversity 
among board members as important 
considerations when reviewing the 
composition of the board the board 
recognises in particular the importance  
of gender diversity currently 30 of the 
company’s nonexecutive directors are 
women and they make up 25 of the full 
board since the formation of astrazeneca 
in 1999 the proportion of female board 
members has been approximately 25 
although it has not set any specific 
measurable objectives the board intends  
to continue with its current approach to 
diversity in all its aspects while at the same 
time seeking board members of the highest 
calibre and with the necessary experience 
and skills to meet the needs of the company 
and its shareholders information about our 
approach to diversity in the organisation 
below boardlevel can be found in the 
employees section from page 66 
the following changes to the composition  
of the board have occurred during the 
period covered by this annual report
  simon lowth served as an executive 
director and cfo until 31 october 2013 
when he left the company 
  marc dunoyer was appointed as an 
executive director and as cfo with  
effect from 1 november 2013
independence of the nonexecutive 
directors
during 2013 the board considered the 
independence of each nonexecutive 
director for the purposes of the uk 
corporate governance code and the 
corporate governance listing standards  
of the nyse listing standards with the 
exception of marcus wallenberg the board 
considers that all of the nonexecutive 
directors are independent leif johansson 
was considered by the board to be 
independent upon his appointment as 
chairman in accordance with the uk 
corporate governance code the test of 
independence is not appropriate in relation 
to the chairman after his appointment
marcus wallenberg was appointed as  
a director of astra in may 1989 and 
subsequently became a director of the 
company in 1999 he is a nonexecutive 
director of investor ab which has a 409 
interest in the issued share capital of the 
company as at 31 january 2014 a number 
of wallenberg charitable foundations have 
connections to mr wallenberg and to 
investor ab for these reasons the board 
does not believe that he can be determined 
independent under the uk corporate 
governance code however the board 
believes that he has brought and continues 
to bring considerable business experience 
and makes a valuable contribution to the 
work of the board in april 2010 he was 
appointed as a member of the science 
committee reflecting his interest in 
innovation and rd knowledge of the 
history of the company and its scientific 
heritage and culture and his broad 
experience of other industries and 
businesses in which innovation and rd  
are important determinants of success
conflicts of interest
the articles enable the directors to 
authorise any situation in which a director 
has an interest that conflicts or has the 
potential to conflict with the company’s 
interests and which would otherwise be  
a breach of the director’s duty under section 
175 of the companies act 2006 the board 
has a formal system in place for directors to 
declare such situations to be considered  
for authorisation by those directors who 
have no interest in the matter being 
considered in deciding whether to 
authorise a situation the nonconflicted 
directors must act in the way they consider 
in good faith would be most likely to 
promote the success of the company and 
they may impose limits or conditions when 
giving the authorisation or subsequently  
if they think this is appropriate situations 
considered by the board and authorisations 
given are recorded in the board minutes 
and in a register of conflicts maintained  
by the company secretary and are 
reviewed annually by the board the board 
considers that this system continues to 
operate effectively
appointments to the board
the nomination and governance committee 
section on page 93 gives information about 
the appointment process for new directors
newly appointed directors are provided  
with comprehensive documentation 
containing information about the group  
and their role as nonexecutive directors 
they also typically attend tailored induction 
programmes that take account of their 
individual skills and experience
time commitment
our expectation is that nonexecutive 
directors should be prepared to commit  
15 days a year as an absolute minimum  
to the group’s business in practice board 
members’ time commitment exceeds this 
minimum expectation when all the work that 
90
corporate governance  corporate governance report
astrazeneca annual report and form 20f information 2013
board committee membership 
name audit remuneration
nomination 
and
governance science independent
1
geneviève berger 3 3
bruce burlington 3 3 3
graham chipchase 3 3
jeanphilippe courtois 3 3
marc dunoyer na
leif johansson 3 chair na
2
rudy markham chair 3 3 3
nancy rothwell 3 3 chair 3
pascal soriot na
shriti vadera 3 3
john varley chair 3 3
marcus wallenberg 3
1
 as determined by the board for uk corporate governance code purposes
2
  leif johansson was considered by the board to be independent upon his appointment as chairman in accordance with the uk corporate governance code the test of independence is not 
appropriate in relation to the chairman after his appointment discussion with the chairman their 
contribution to the work of the board  
and personal development needs were 
considered each director continues to 
perform effectively and to demonstrate 
commitment to their role in addition  
led by the senior independent non
executive director the other nonexecutive 
directors absent the chairman evaluated 
the performance of the chairman the 
chairmen of the audit and remuneration 
committees led reviews relating to their 
committees it was concluded that both 
committees are operating effectively
the board’s annual performance evaluation 
was last externally facilitated in 2011 the 
board intends to continue to comply with 
the uk corporate governance code 
guidance that the evaluation should be 
externally facilitated at least every three 
years and expects to commission an 
externallyfacilitated review in 2014
reelection of directors
in accordance with article 66 of the  
articles all directors retire at each agm  
and may offer themselves for reelection  
by shareholders accordingly all of the 
directors will retire at the agm in april 2014 
the notice of agm will give details of those 
directors seeking reelection
accountability
risk management and internal control
the board has overall responsibility for  
our system of internal controls and risk 
management policies and is also 
responsible for reviewing their effectiveness 
during 2013 the directors continued to 
review the effectiveness of our system of 
the company maintained directors’  
and officers’ liability insurance cover 
throughout 2013 the directors are also 
able to obtain independent legal advice  
at the expense of the company as 
necessary in their capacity as directors
the company has entered into a deed of 
indemnity in favour of each board member 
since 2006 these deeds of indemnity are 
still in force and provide that the company 
shall indemnify the directors to the fullest 
extent permitted by law and the articles  
in respect of all losses arising out of or  
in connection with the execution of their 
powers duties and responsibilities as 
directors of the company or any of its 
subsidiaries this is in line with current 
market practice and helps us attract and 
retain highquality skilled directors
performance evaluation
the board conducted an annual evaluation 
of its performance and that of individual 
directors in respect of 2013 the evaluation 
involved a series of discussions between  
the chairman and individual directors the 
themes arising from these discussions were 
considered at the board meeting held in 
february 2014 a number of areas were 
reviewed including the size and composition 
of the board board processes and support 
the content of board agendas and how the 
board approached strategy governance 
and succession planning some 
improvements to ways of working were 
proposed but overall the board was 
considered to be operating effectively  
as part of each director’s individual 
they undertake for the group is considered 
particularly in the case of the chairman of 
the board and the chairmen of the board 
committees as well as their work in relation 
to formal board and board committee 
meetings the nonexecutive directors  
also commit time throughout the year to 
meetings and telephone calls with various 
levels of executive management visits to 
astrazeneca’s sites throughout the world 
and for new nonexecutive directors 
induction sessions and site visits
on occasions when a director is 
unavoidably absent from a board or board 
committee meeting for example where  
a meeting clashes with his or her existing 
commitments he or she still receives and 
reviews the papers for the meeting and 
typically provides verbal or written input 
ahead of the meeting usually through the 
chairman of the board or the chairman  
of the relevant board committee so that  
his or her views are made known and 
considered at the meeting in addition  
given the nature of the business to be 
conducted some board meetings are 
convened at short notice which can make 
it difficult for some directors to attend due  
to prior commitments
information and support
the company secretary is responsible  
to the chairman for ensuring that all  
board and board committee meetings  
are properly conducted that the directors 
receive appropriate information prior  
to meetings to enable them to make an 
effective contribution and that governance 
requirements are considered and 
implemented
additional information financial statements corporate governance strategic report
91 astrazeneca annual report and form 20f information 2013
board and board committee meeting attendance in 2013 
name
board 
scheduled
board 
unscheduled
1
audit remuneration
2
nomination 
and 
governance science
geneviève berger 6 6 5 5 – – – 4 6
bruce burlington 6 6 4 5 5 5 – – 6 6
graham chipchase 6 6 2 5 5 5 – – –
jeanphilippe courtois 5 6 2 5 4 5 – – –
marc dunoyer
3
1 1 1 1 1 1 – – –
leif johansson 6 6 5 5 – 13 13 4 4 –
simon lowth
4
5 5 4 4 4 4 – – –
rudy markham 6 6 4 5 5 5 9 11 4 4 –
nancy rothwell 6 6 4 5 – 10 13 2 4 6 6
pascal soriot 6 6 5 5 3 5 – – –
shriti vadera 6 6 5 5 5 5 – – –
john varley 6 6 4 5 – 13 13 4 4 –
marcus wallenberg 6 6 5 5 – – – 5 6
note number in brackets denotes number of meetings during the year that board members were entitled to attend 
1
  the board held five unscheduled meetings during the year some convened at short notice at which business development transactions were discussed and approved
2
  the remuneration committee met 13 times during the year two of those meetings dealt only with remuneration arrangements for simon lowth rudy markham did not attend those meetings  
mr markham has always refrained from participating in discussions and decisions relating to mr lowth’s remuneration in the light of both he and mr lowth being nonexecutive directors at  
another company
3
 marc dunoyer was appointed to the board on 1 november 2013
4
 simon lowth left the board on 31 october 2013 controls risk management and our high 
level internal control processes these 
reviews have included an assessment of 
internal controls and in particular financial 
operational and compliance controls and 
risk management and their effectiveness 
supported by management assurance of 
the maintenance of controls reports from  
ia as well as the external auditor on matters 
identified in the course of its statutory audit 
work the system is designed to manage 
rather than eliminate the risk of failure to 
achieve business objectives and can only 
provide reasonable not necessarily 
absolute assurance of effective operation 
and compliance with laws and regulations
underpinning these reviews is an annual 
‘letter of assurance’ process by which 
responsible managers confirm the adequacy 
of their systems of internal financial and 
nonfinancial controls their compliance  
with group policies and relevant laws  
and regulations including the industry’s 
regulatory requirements and that they have 
reported any control weaknesses through 
our ‘continuous assurance’ process
the internal control framework was in 
operation throughout 2013 and continues  
to operate up to the date of the approval  
of this annual report the directors believe 
that the group maintains an effective 
embedded system of internal controls  
and complies with the frc’s guidance 
entitled ‘internal control revised guidance 
to directors’ formerly referred to as the 
turnbull report guidance and in the view 
of the directors no significant deficiencies 
have been identified in the system
further information about the ways in which 
we manage our business risks is set out in 
the risk section from page 199 which also 
contains a list of the principal risks and 
uncertainties that we face
remuneration
information about our approach to 
remuneration and the role and work of the 
remuneration committee including our 
policy on executive remuneration is set  
out in the governance and remuneration 
section from page 26 and in more detail  
in the directors’ remuneration report  
from page 102
relations with shareholders
in our financial and business reporting to 
shareholders and other interested parties by 
means of quarterly halfyearly and annual 
reports we aim to present a balanced and 
understandable assessment of our strategy 
financial position and prospects
we make information about the group 
available to shareholders through a range  
of media including our corporate website 
wwwastrazenecacom containing a  
wide range of data of interest to institutional 
and private investors we consider our 
website to be an important means of 
communication with our shareholders 
the company has been authorised  
by shareholders to place shareholder 
communications such as the notice  
of agm and this annual report on the 
corporate website in lieu of sending paper 
copies to shareholders unless specifically 
requested while recognising and 
respecting the fact that some of our 
shareholders may have different preferences 
about how they receive information from  
us we will continue to promote the benefits 
of electronic communication given the 
advantages that this has over traditional 
paperbased communications both in 
terms of the configurability and accessibility 
of the information provided and the 
consequent cost savings and reduction  
in environmental impact 
we have frequent discussions with 
institutional shareholders on a range  
of issues in december 2013 we held  
a meeting with a number of our major 
shareholders which was attended by the 
chairman of the board leif johansson  
the chairman of the audit committee  
rudy markham and the chairman of  
the remuneration committee and senior 
independent nonexecutive director  
john varley at the meeting we outlined our 
approach to some of the more substantive 
components of our remuneration policy and 
also had the opportunity to discuss matters 
of relevance to the audit committee  
in addition to holding discussions with 
groups of shareholders we also hold 
individual meetings with some of our largest 
institutional shareholders to seek their views 
board members are kept informed of any 
issues and receive regular reports and 
presentations from executive management 
and our brokers in order to assist them  
to develop an understanding of major 
shareholders’ views about the group  
from time to time we conduct an audit  
of institutional shareholders to ensure  
that we are communicating clearly with 
them and that a high quality dialogue  
is being maintained the results of this  
audit are reported to and discussed by  
the full board
we also respond to individual ad hoc 
requests for discussions from institutional 
shareholders and analysts our investor 
relations team acts as the main point of 
contact for investors throughout the year  
as discussed above the senior independent 
nonexecutive director john varley is  
also available to shareholders if they have 
concerns that contact through the normal 
channels of chairman ceo andor cfo 
has failed to resolve or in relation to  
which such contact is inappropriate all 
shareholders including private investors 
have an opportunity at the agm to put 
questions to members of the board about 
our operation and performance formal 
notification of the agm is sent to 
shareholders at least one month in advance 
the board ordinarily attends the agm to 
answer questions raised by shareholders  
in line with the uk corporate governance 
code details of proxy voting by shareholders 
including votes withheld are given at the 
agm and are posted on our website 
following the agm
audit committee 
the principal role of the audit committee  
is to provide assurance to the board in  
the following areas the integrity of our 
financial reporting and internal controls  
over financial matters our internal controls 
over nonfinancial matters compliance  
with laws and our code of conduct the 
company’s relationship with its external 
auditor and the appropriateness of the 
company’s risk management framework  
in each case with the ultimate aim of 
protecting our shareholders’ interests  
for more information please see the  
audit committee report from page 98
remuneration committee
the principal role of the remuneration 
committee is to consider and set on behalf 
of the board the remuneration including 
pension rights and compensation payments 
of executive directors and other senior 
executives it also considers and sets  
the remuneration of the chairman in 
conjunction with the senior independent 
nonexecutive director and in the absence 
of the chairman no director is involved in 
deciding his or her own remuneration  
more information is set out in the directors’ 
remuneration report from page 102
92
corporate governance  corporate governance report
astrazeneca annual report and form 20f information 2013 the science committee met two times  
in person in 2013 in mölndal sweden  
and in cambridge massachusetts us  
and held four other meetings the majority  
of which were by telephone to review 
specific business development or 
acquisition proposals 
the science committee’s terms of 
reference are available on our website 
wwwastrazenecacom
us corporate governance 
requirements
our adss are traded on the nyse and 
accordingly we are subject to the reporting 
and other requirements of the sec 
applicable to foreign private issuers section 
404 of the sarbanesoxley act requires 
companies to include in their annual report 
on form 20f filed with the sec a report  
by management stating its responsibility for 
establishing internal control over financial 
reporting and to assess annually the 
effectiveness of such internal control  
we have complied with those provisions  
of the sarbanesoxley act applicable to 
foreign private issuers the board continues 
to believe that the group has a sound 
corporate governance framework good 
processes for the accurate and timely 
reporting of its financial position and results 
of operations and an effective and robust 
system of internal controls we have 
established a disclosure committee  
further details of which can be found in the 
disclosure committee section overleaf
the directors’ assessment of the 
effectiveness of internal control over  
financial reporting is set out in the directors’ 
responsibilities for and report on internal 
control over financial reporting section  
in the financial statements on page 127 
we are required to disclose any significant 
ways in which our corporate governance 
practices differ from those followed by us 
companies under the listing standards  
in addition we must comply fully with the 
provisions of the listing standards relating 
to the composition responsibilities and 
operation of audit committees applicable  
to foreign private issuers these provisions 
incorporate the rules concerning audit 
committees implemented by the sec under 
the sarbanesoxley act we have reviewed 
the corporate governance practices 
required to be followed by us companies 
under the listing standards and our 
corporate governance practices are 
generally consistent with those standards
neither mwm consulting nor the zygos 
partnership has any other connection to  
the company spencer stuart undertakes 
executive search assignments for the 
company periodically
the individual attendance record of the 
nomination and governance committee’s 
members is set out on page 91
the nomination and governance 
committee’s terms of reference are available 
on our website wwwastrazenecacom
science committee
the science committee’s core role is to 
provide assurance to the board regarding 
the quality competitiveness and integrity  
of the group’s rd activities by way of 
meetings and dialogue with our rd 
leaders and other scientist employees  
visits to our rd sites throughout the world 
and review and assessment of 
  the approaches we adopt in respect  
of our chosen therapy areas 
  the scientific technology and rd 
capabilities we deploy 
  the decisionmaking processes for rd 
projects and programmes
  the quality of our scientists their career 
opportunities and talent development
  benchmarking against industry and 
scientific best practice where 
appropriate
the science committee periodically reviews 
important bioethical issues that we face 
and assists in the formulation of and agrees 
on behalf of the board appropriate policies 
in relation to such issues it may also 
consider from time to time future trends  
in medical science and technology the 
science committee does not review 
individual rd projects but does review  
on behalf of the board the rd aspects  
of specific business development or 
acquisition proposals and advises the  
board on its conclusions
during 2013 the members of the  
science committee all of whom have a 
knowledge of or an interest in life sciences 
were nancy rothwell chairman of the 
science committee geneviève berger 
bruce burlington and marcus wallenberg 
the evp  gmd the evp  imed and the 
evp  medimmune attended meetings  
of the science committee in 2013 the 
vicepresident imed operations acts  
as secretary to the science committee
nomination and governance 
committee
the nomination and governance 
committee’s role is to recommend to the 
board any new board appointments and  
to consider more broadly succession plans 
at board level it continually reviews the 
composition of the board using a matrix that 
records the skills and experience of current 
board members comparing this with the 
desired skills and experience it believes  
are appropriate to the company’s overall 
business and strategic needs both now 
and in the future any decisions relating to 
the appointment of directors are made by 
the entire board based on the merits of  
the candidates and the relevance of their 
background and experience measured 
against objective criteria with care taken  
to ensure that appointees have enough  
time to devote to our business 
the nomination and governance 
committee also advises the board 
periodically on significant developments in 
corporate governance and the company’s 
compliance with the uk corporate 
governance code
during 2013 the chairman of the 
nomination and governance committee 
was leif johansson the members  
of the nomination and governance 
committee were rudy markham  
nancy rothwell and john varley each  
of them is a nonexecutive director  
and considered independent by the  
board the company secretary acts  
as secretary to the nomination and 
governance committee
the nomination and governance 
committee considers both planned  
and unplanned unanticipated succession 
scenarios and met four times in 2013 
during the summer of 2013 the search  
firm spencer stuart was engaged to  
identify potential candidates for the  
position of executive director and cfo 
following simon lowth’s decision to  
leave the company a number of external 
candidates were identified although 
ultimately an internal candidate was 
preferred and the nomination and 
governance committee recommended  
to the board the appointment of marc 
dunoyer as an executive director and  
cfo this appointment took effect on 
1 november 2013
as part of routine succession planning 
during the year the nomination and 
governance committee also engaged 
mwm consulting and the zygos 
partnership to assist it with searches for 
new nonexecutive directors this work  
is continuing
additional information financial statements corporate governance strategic report
93 astrazeneca annual report and form 20f information 2013 business organisation
senior executive team
the ceo is responsible for establishing  
and chairs the set the set normally 
meets once a month or as otherwise 
required by business need to consider 
major business issues and makes 
recommendations to the ceo typically  
it also reviews in advance of submission  
to the board those matters which are  
to be submitted to the board for review  
and decision 
in addition to the ceo the cfo the  
general counsel and the chief compliance 
officer the set comprises nine evps 
representing imed medimmune gmd 
north america international europe gpps 
operations  information services and 
human resources  corporate affairs  
the company secretary acts as secretary 
to the set
early stage product committees 
espcs and late stage product 
committee lspc 
the espcs and lspc were established  
in 2013 replacing previous governance 
committees including the portfolio 
investment board 
early stage product committees 
the espcs are seniorlevel crossfunctional 
governance bodies with accountability for 
oversight of our early stage small molecule 
and biologics portfolio to proof of concept 
stage the evps of our two biotech units 
imed and medimmune chair our espcs 
the espcs seek to deliver a flow of 
products to gmd for phase iii development 
through to launch the espcs also seek  
to maximise the value of our internal and 
external rd investments through robust 
transparent and wellinformed decision
making that drives business performance 
and accountability 
specifically the espcs have responsibility 
for the following 
  approving earlystage investment 
decisions 
  prioritising the rd portfolio 
  licensing activity for products in phase i 
and earlier
  delivering internal and external 
opportunities
  reviewing allocation of rd resources
late stage product committee 
the lspc is also a seniorlevel governance 
body accountable for the quality of the 
portfolio postphase iii investment decision 
it was formed in early 2013 replacing three 
committees in a move to streamline 
development project governance jointly 
chaired by the evps of gmd and gpps 
members include as appropriate members 
of the set including the ceo and the cfo 
and members of the gmd and gpps 
leadership teams
the lspc seeks to maximise the value  
of our investments in the latephase 
portfolio also ensuring well informed  
and robust decision making specific 
accountabilities include
  approval of the criteria supporting  
proof of concept
  decision to invest in phase iii development 
based on agreement of commercial 
opportunity and our plans to develop  
the medicine
  evaluation of the outcome of the 
development programme and decision  
to proceed to regulatory filing
  decision to invest in lifecycle 
management activities for the late  
phase assets
  decision to invest in latephase business 
development opportunities
disclosure committee
our disclosure policy provides a framework 
for the handling and disclosure of inside 
information and other information of interest 
to shareholders and the investment 
community it also defines the role of the 
disclosure committee the members of  
the disclosure committee in 2013 were  
the cfo who chaired the disclosure 
committee the evp  gmd who is also  
the company’s chief medical officer  
the general counsel the vicepresident 
global communications the vicepresident 
investor relations and the vicepresident 
group financial planning and reporting 
the deputy company secretary acted  
as secretary to the disclosure committee 
the disclosure committee meets regularly 
to assist and inform the decisions of the 
ceo concerning inside information and  
its disclosure periodically it reviews our 
disclosure controls and procedures and  
its own operation as part of work carried  
out to enable management and the board 
to assure themselves that appropriate 
processes are operating for our planned 
disclosures such as our quarterly results 
announcements and scheduled investor 
relations events
disclosure of information to auditors 
the directors who held office at the date  
of approval of this annual report confirm 
that so far as they are each aware there  
is no relevant audit information of which  
the company’s auditors are unaware and 
each director has taken all the steps that  
he or she ought to have taken as a director 
to make himself or herself aware of any 
relevant audit information and to establish 
that the company’s auditors are aware of 
that information
compliance and internal audit services 
ia
the role of the global compliance function 
is to manage and maintain the compliance 
programme infrastructure and to help 
embed a culture of ethics and integrity  
in the group global compliance works 
closely with ia with whom it provides 
assurance reporting to the audit committee 
during 2014 the global compliance 
function will continue to focus on ensuring 
the delivery of an aligned approach to 
compliance that addresses key risk areas 
across the business further information 
can be found in the risk section from  
page 199
global compliance provides direct 
assurance to the audit committee on 
matters concerning compliance issues 
including the results of monitoring 
conducted by global compliance and  
an analysis of compliance breaches 
complementing this ia carries out a range 
of audits that include compliancerelated 
audits and reviews of the assurance 
activities of other group assurance 
functions the results from these activities 
are reported to the audit committee
ia is an independent appraisal function that 
derives its authority from the board through 
the audit committee its primary role is to 
provide reasonable and objective assurance 
to the directors regarding the adequacy and 
effectiveness of the group’s governance 
risk management and internal control 
processes in relation to the group’s defined 
goals and objectives
94
corporate governance  corporate governance report
astrazeneca annual report and form 20f information 2013 branches and countries in which the 
group conducts business 
in accordance with the companies act 
2006 we disclose below our subsidiary 
companies that have representative or 
scientific branchesoffices outside the uk
  astrazeneca uk limited albania algeria 
scientific office angola azerbaijan 
belarus bulgaria chile costa rica 
croatia cuba georgia ghana scientific 
office jordan kazakhstan macedonia 
nigeria romania russia saudi arabia 
scientific office serbia and montenegro 
slovenia syria and ukraine
  astrazeneca ab egypt scientific office 
slovakia and the united arab emirates
  astrazeneca singapore pte limited 
vietnam
distributions to shareholders –  
dividends for 2013
details of our distribution policy are set out 
in the financial review on page 82 and 
notes 20 and 21 to the financial statements 
on page 165 
the company’s dividends for 2013 of  
280 1760 pence sek 1833 per 
ordinary share amount to in aggregate  
a total dividend payment to shareholders  
of 3461 million two of our employee 
share trusts astrazeneca share trust 
limited and astrazeneca quest limited 
waived their right to a dividend on the 
ordinary shares that they hold and instead 
received a nominal dividend 
a shareholders’ resolution was passed at 
the 2013 agm authorising the company  
to purchase its own shares the company 
did not repurchase any of its own shares  
in 2013
going concern accounting basis 
information on the business environment  
in which astrazeneca operates including 
the factors underpinning the industry’s 
future growth prospects is included in the 
strategic report details of the product 
portfolio of the group are contained in both 
the strategic report in the therapy area 
review from page 48 and the directors’ 
report information on patent expiry dates 
for key marketed products is included in the 
patent expiries section from page 198 our 
approach to product development and our 
development pipeline are also covered in 
detail with additional information by therapy 
area in the strategic report
the code includes information on how  
to report possible violations including 
through the azethics telephone lines and 
wwwazethicscom anyone who raises  
a possible breach in good faith is fully 
supported by management we take  
all alleged compliance breaches and 
concerns extremely seriously and 
investigate them and report the outcome  
of such investigations to the audit 
committee as appropriate 
in 2013 149 reports of alleged compliance 
breaches or other ethical concerns were 
made via telephone the azethics website 
or the global compliance email or postal 
addresses described in the code in 2012 
the number of reports through equivalent 
channels was 194 this decrease is in  
the context of a significant increase in 
management and selfreporting of 
compliance incidents which can be seen  
as an indication that employees are more 
comfortable in raising their concerns with 
line managers local hr legal or 
compliance as recommended in the code 
and reinforced in the 2013 code training
our global policies supplement the code 
they provide clear and comprehensive 
guidance in key ethical compliance and 
corporate responsibility risk areas
other matters
corporate governance statement under 
the uk disclosure and transparency 
rules dtr
the disclosures that fulfil the requirements 
of a corporate governance statement under 
the dtr can be found in this section and in 
other parts of this annual report as listed 
below each of which is incorporated into 
this section by reference
  significant holders of the company’s 
shares 
  articles 
  amendments to the articles 
further information on the above can be 
found in the shareholder information section 
from page 225 and the corporate 
information section from page 230
subsidiaries and principal activities
the company is the holding company  
for a group of subsidiaries whose principal 
activities are described in this annual 
report principal subsidiaries and their 
locations are given in the principal 
subsidiaries section in the financial 
statements on page 186
ia seeks to discharge the responsibilities  
set down in its charter by reviewing 
  the processes for ensuring that key 
business risks are effectively managed
  the financial and operational controls that 
help to ensure the group’s assets are 
properly safeguarded from losses 
including fraud
  the controls that help to ensure the 
reliability and integrity of management 
information systems
  the processes for ensuring compliance 
with policies and procedures external 
legislation and regulation
in addition to fulfilling its primary remit of 
assurance to the audit committee ia  
may also evaluate specific operations  
at the request of the audit committee  
or management as appropriate 
code of conduct 
our code of conduct the code  
which is available on our website  
wwwastrazenecacom applies worldwide 
to all fulltime and parttime directors 
officers employees and temporary staff 
in all companies within our group a group 
finance code of conduct complements  
the code it applies to the ceo the cfo 
the group’s principal accounting officers 
including key finance staff in major 
overseas subsidiaries and all finance 
function employees this reinforces the 
importance of the integrity of the group’s 
financial statements the reliability of the 
accounting records on which they are 
based and the robustness of the relevant 
controls and processes
the code is at the core of our compliance 
programme it has been translated into over 
40 languages and employees have access 
to an electronic copy it provides clear 
direction as to how our commitment to 
honesty and integrity is to be realised in 
consistent actions across all areas of the 
business compliance with the code is 
mandatory and every employee receives 
training on it every employee is required to 
comply with local laws and regulations as 
well as applicable national and international 
codes we always seek to operate at the 
highest of these various standards the 
code is reviewed periodically and updated 
to take account of changing legal and 
regulatory obligations 
additional information financial statements corporate governance strategic report
95 astrazeneca annual report and form 20f information 2013 the financial position of the group its  
cash flows liquidity position and borrowing 
facilities are described in the financial 
review from page 74 in addition note 23  
to the financial statements from page 169 
includes the group’s objectives policies 
and processes for managing its capital  
its financial risk management objectives 
details of its financial instruments and 
hedging activities and its exposures to 
credit market and liquidity risk further 
details of the group’s cash balances and 
borrowings are included in notes 13 and 14 
to the financial statements from pages 155 
and 156
the group has considerable financial 
resources available as at 31 december 
2013 the group had 104 billion in financial 
resources cash balances of 92 billion  
and undrawn committed bank facilities of 
30 billion which are available until april 
2017  with only 18 billion of debt due within 
one year the group’s revenues are largely 
derived from sales of products that are 
covered by patents which provide a 
relatively high level of resilience and 
predictability to cash inflows although  
our revenue is expected to continue to  
be significantly impacted by the expiry of 
patents over the medium term in addition 
recent government price interventions in 
response to budgetary constraints are 
expected to continue to adversely affect 
revenues in many of our mature markets 
however we anticipate new revenue 
streams from both recently launched 
medicines and products in development 
and the group has a wide diversity of 
customers and suppliers across different 
geographic areas consequently the 
directors believe that overall the group  
is well placed to manage its business risks 
successfully despite the current uncertain 
economic outlook
after making enquiries the directors have  
a reasonable expectation that the company 
and the group have adequate resources  
to continue in operational existence for  
the foreseeable future accordingly they 
continue to adopt the going concern basis 
in preparing the annual report and 
financial statements
changes in share capital 
changes in the company’s ordinary  
share capital during 2013 including details 
of the allotment of new shares under  
the company’s share plans are given in  
note 20 to the financial statements from 
page 165
directors’ shareholdings 
the articles require each director to be  
the beneficial owner of ordinary shares  
in the company with an aggregate nominal 
value of 125 which currently represents  
at least 500 shares because each ordinary 
share has a nominal value of 025  
such holding must be obtained within  
two months of the date of the director’s 
appointment at 31 december 2013 all of 
the directors complied with this requirement 
and full details of each director’s interests  
in shares of the company are set out in the 
directors’ interests in shares section from 
page 110 information about the 
shareholding expectations of the 
remuneration committee in respect of 
executive directors and set members and 
the board in respect of nonexecutive 
directors is also set out in the directors’ 
interests in shares section from page 110
political donations 
neither the company nor its subsidiaries 
made any eu political donations or incurred 
any eu political expenditure in 2013 and 
they do not intend to do so in the future in 
respect of which shareholder authority is 
required or for which disclosure in this 
annual report is required under the 
companies act 2006 however to enable 
the company and its subsidiaries to 
continue to support interest groups or 
lobbying organisations concerned with  
the review of government policy or law 
reform without inadvertently breaching  
the companies act 2006 which defines 
political donations and other political 
expenditure in broad terms a resolution  
will be put to shareholders at the 2014  
agm similar to that passed at the 2013 
agm to authorise the company and its 
subsidiaries to 
  make donations to political parties or 
independent election candidates
  make donations to political organisations 
other than political parties
  incur political expenditure up to an 
aggregate limit of 250000
corporate political contributions in the  
us are permitted in defined circumstances 
under the first amendment of the us 
constitution and are subject to both federal 
and state laws and regulations in 2013  
the group’s us legal entities made 
contributions amounting in aggregate to 
1147 950 2012 1759450 to national 
political organisations statelevel political 
party committees and to campaign 
committees of various state candidates  
no corporate donations were made at the 
federal level and all contributions were made 
only where allowed by us federal and state 
law we publicly disclose details of our 
corporate us political contributions which 
can be found at wwwastrazenecauscom
responsibilitytransparency the annual 
corporate contributions budget is reviewed 
and approved by the deputy general 
counsel north america the us vice
president corporate affairs and the 
president of our us business to ensure 
robust governance and oversight us 
citizens or individuals holding valid green 
cards exercised decision making over  
the contributions and the funds were not 
provided or reimbursed by any nonus legal 
entity such contributions do not constitute 
political donations or political expenditure for 
the purposes of the companies act 2006 
and were made without any involvement  
of persons or entities outside the us 
significant agreements
there are no significant agreements to 
which the company is a party that take 
effect alter or terminate on a change of 
control of the company following a takeover 
bid there are no persons with whom we 
have contractual or other arrangements 
who are deemed by the directors to be 
essential to our business 
use of financial instruments 
the notes to the financial statements 
including note 23 from page 169 include 
further information on our use of financial 
instruments
annual general meeting 
the company’s agm will be held on  
24 april 2014 the meeting place will be  
in london uk a notice of agm will be sent 
to all registered holders of ordinary shares 
and where requested to the beneficial 
holders of shares
96 astrazeneca annual report and form 20f information 2013
corporate governance  corporate governance report external auditor 
a resolution will be proposed at the agm  
on 24 april 2014 for the appointment of 
kpmg llp as auditor of the company 
following a decision to wind down the 
company’s current external auditor kpmg 
audit plc as part of a kpmg group internal 
reorganisation the external auditor has 
undertaken various nonaudit work for us 
during 2013 more information about this 
work and the audit and nonaudit fees that 
we have paid are set out in note 27 to the 
financial statements on page 184 the 
external auditor is not engaged by us to 
carry out any nonaudit work in respect  
of which it might in the future be required 
to express an audit opinion as explained 
more fully in the audit committee section 
from page 98 the audit committee has 
established preapproval policies and 
procedures for audit and nonaudit work 
permitted to be carried out by the external 
auditor and has carefully monitored the 
objectivity and independence of the external 
auditor throughout 2013
directors’ report 
the directors’ report which has been 
prepared in accordance with the 
requirements of the companies act 2006 
comprises the following sections
  corporate governance report
  audit committee report
  development pipeline
  responsible business 
  shareholder information
  corporate information
and has been signed on behalf of the 
board
the board considers this annual report 
taken as a whole to be fair balanced  
and understandable and provides the 
necessary information for shareholders  
to assess astrazeneca’s performance 
business model and strategy
a c n kemp 
company secretary 
6 february 2014
 
additional information financial statements corporate governance strategic report
97 astrazeneca annual report and form 20f information 2013 98 astrazeneca annual report and form 20f information 2013
corporate governance 
audit committee 
report
rudy markham 
chairman of the audit committee
dear shareholder
the principal duties of the audit 
committee are to provide 
assurance to the board on 
  the integrity of our financial 
reporting and internal controls 
over financial matters
  our internal controls over 
nonfinancial matters 
compliance with laws and  
our code of conduct 
  the company’s relationship 
with its external auditor
  the role resources and 
effectiveness of the company’s 
internal audit function
  the effectiveness of the 
company’s risk management 
framework
in each case with the ultimate 
aim of protecting our 
shareholders’ interests 
in this audit committee report we describe 
the work of the audit committee during the 
year and highlight the significant issues it 
considered in 2013 our focus was on 
sound financial reporting and compliance 
with our code of conduct which are 
considered below
financial reporting
robust financial reporting is underpinned by 
well designed internal controls appropriate 
accounting practices and policies and 
good judgement the audit committee 
reviews at least quarterly the company’s 
significant accounting matters and where 
appropriate challenges management’s 
decisions in 2013 against a backdrop of 
revenue decline one of the significant issues 
at the forefront of the audit committee’s 
deliberations was revenue recognition  
in addition the annual impairment review  
of intangible assets was another significant 
matter which came before the audit 
committee considering the quantum and 
appropriateness of the partial impairment  
of our diabetes asset bydureon rights to 
which we acquired when we extended our 
diabetes collaboration with bms in 2012 
was a key aspect of our review the audit 
committee also requested and received 
information about the then current business 
case associated with the extended bms 
collaboration in order to understand more 
fully the initial acquisition business case and 
to test the robustness of the company’s 
processes in respect of investment 
decisions this review by the audit committee 
informed the board’s decision to support 
the acquisition of bms’s 50 share of  
the joint diabetes business which was 
announced at the end of the year and  
which was completed on 1 february 2014
in addition to ip litigation which is a  
feature of the pharmaceutical industry  
the group is involved in a number of 
government investigations and is a 
defendant in certain product liability actions 
the audit committee receives a regular 
update from the general counsel on the 
status of those litigation matters which 
might result in fines or damages awards 
against the group in order to assess 
whether provisions should be taken and  
if so when and in what amounts
compliance with the code of conduct
the audit committee has oversight of  
the company’s responsibilities under  
a corporate integrity agreement cia  
which is now in its fourth year in addition  
to receiving quarterly updates from the  
us compliance officer on our compliance  
with the cia in 2013 members of the  
audit committee visited our us business 
we met senior managers in sales and 
marketing compliance and internal audit to 
satisfy ourselves that a compliance culture 
has become embedded in our business
compliance with our code of conduct in 
our emerging markets particularly in russia 
and china has also been a focus for the 
audit committee in 2013 during the course 
of the year the audit committee received  
a report from the evp of our international 
region on the steps we are taking in those 
markets to ensure that we operate ethically 
and within the law this update was  
in addition to reports from the chief 
compliance officer on compliance in all 
areas of our business which we received 
and discussed with her each quarter
in december 2013 i joined our chairman 
and the chairman of the remuneration 
committee at a meeting with some of  
our major investors to hear their views  
on our remuneration policy and corporate 
governance generally we value dialogue 
with our shareholders and welcome your 
feedback on this audit committee report
yours sincerely
rudy markham 
chairman of the audit committee  audit committee membership  
and attendance
the members of the audit committee are 
rudy markham chairman of the audit 
committee bruce burlington graham 
chipchase jeanphilippe courtois and 
shriti vadera they are all nonexecutive 
directors the board considers each 
member to be independent under the uk 
corporate governance code and under  
the general guidance and specific criteria  
of the listing standards concerning the 
composition of audit committees applicable 
to nonus companies listed on the nyse  
in april 2013 we submitted the required 
annual written affirmation to the nyse 
confirming our full compliance with those 
standards for the purposes of the uk 
corporate governance code the board 
remains satisfied that at least one member 
of the audit committee has recent and 
relevant financial experience at its meeting 
in december 2013 the board determined 
that rudy markham and graham chipchase 
are audit committee financial experts for the 
purposes of the sarbanesoxley act for 
further information regarding the experience 
of the audit committee members see the 
board of directors section from page 28 
the deputy company secretary acts as 
secretary to the audit committee 
meetings of the audit committee are 
routinely attended by the cfo the general 
counsel the chief compliance officer  
the vicepresident ia the vicepresident 
group financial planning and reporting 
and our external auditor the ceo attends 
on an agendadriven basis in line with its 
normal practice the audit committee also 
held a number of private meetings without 
management present with the chief 
compliance officer the general counsel 
the vicepresident ia and the company’s 
external auditor these meetings were held 
between audit committee members and 
those individuals separately from the main 
sessions of the audit committee
number of meetings and attendance 
the audit committee held five scheduled 
meetings in 2013 the individual attendance 
record of members of the audit committee 
is set out in the board and board 
committee meeting attendance in 2013 
table on page 91 following each audit 
committee meeting the chairman of  
the audit committee reported to the board 
on the principal matters covered at the 
meeting and minutes of the meetings  
were circulated to all board members  
in addition the chairman of the audit 
committee held regular scheduled calls 
between audit committee meetings with 
each of the cfo the chief compliance 
officer the vicepresident ia and the  
lead partner of the external auditor
the audit committee is currently scheduled 
to meet five times in 2014 and will meet at 
such other times as may be required
terms of reference
the core terms of reference of the audit 
committee which are available on our 
website wwwastrazenecacom include 
reviewing and reporting to the board on
  matters relating to the audit plans of the 
external auditor and ia as well as 
oversight of the work of the global 
compliance function
  our overall framework for internal control 
over financial reporting and for other 
internal controls and processes
  our overall framework for risk 
management particularly financial risks
  our accounting policies and practices
  our annual and quarterly financial 
reporting including the critical estimates 
and judgements contained in our 
reporting 
  our internal control over financial reporting
  our code of conduct and whistleblower 
procedures
  compliance with our obligations under  
the cia
the audit committee is responsible for 
notifying the board of any significant 
concerns of the external auditor or the 
vicepresident ia arising from their audit 
work any matters that may materially  
affect or impair the independence of the 
external auditor any significant deficiencies 
or material weaknesses in the design  
or operation of our internal control over 
financial reporting or other internal controls 
and any serious issues of noncompliance 
and how the audit committee has 
discharged its responsibilities it oversees 
the establishment implementation and 
maintenance of our code of conduct  
and other related policies it monitors the 
company’s response to letters requesting 
information and investigations initiated by 
regulatory and governmental authorities 
such as the sec the doj and the uk 
financial reporting council pertaining  
to matters within the remit of the audit 
committee’s work it has established 
procedures for the receipt and handling  
of complaints concerning accounting or 
audit matters it recommends to the board 
the appointment of the external auditor 
subject to the approval of the company’s 
shareholders at a general meeting 
shareholders authorise the directors to fix 
the remuneration of the external auditor  
at a general meeting the audit committee 
reviews and approves the appointment and 
dismissal of the vicepresident ia 
activities of the audit committee  
in 2013
the audit committee has an annual 
calendar of topics developed from its  
terms of reference with standing items 
which it considers in accordance with its 
schedule at each quarterly meeting or in 
some cases annually
additional information financial statements corporate governance strategic report
99 astrazeneca annual report and form 20f information 2013
“  in 2013 our focus was on sound 
financial reporting and compliance 
with our code of conduct”  during 2013 and in february 2014 the audit 
committee considered and discussed the 
following standing items 
  the key elements of the financial 
statements and the estimates and 
judgements contained in our financial 
disclosures various accounting matters 
were considered these included the 
areas described in the financial review 
under the heading ‘critical accounting 
policies and estimates’ with a focus on 
accounting issues relevant to litigation 
and taxation matters and goodwill 
impairment from page 83 and discussion 
was supported by papers prepared by 
management and the external auditor 
  the reports received from the external 
auditor concerning their audit of the 
financial statements of the group and 
from management ia global 
compliance and the external auditor on 
the effectiveness of our system of internal 
controls and in particular our internal 
control over financial reporting this 
included review and discussion of the 
results of the group’s ‘continuous 
assurance’ and annual ‘letter of 
assurance’ processes the audit 
committee also reviewed quarterly 
activity reports of audit work carried out 
by ia and the status of followup actions 
with management as well as reports from 
global compliance
  the systems and processes that 
management has developed for risk 
identification classification and mitigation
  compliance with the applicable provisions 
of the sarbanesoxley act in particular 
the status of compliance with the 
programme of internal controls over 
financial reporting implemented pursuant 
to section 404 of the sarbanesoxley  
act the audit committee remained 
focused on it controls in the context  
of the changes to the group’s it 
environment described below further 
information about this is set out in  
the sarbanesoxley act section 404 
section on page 87  
  data about reports made by employees 
via the azethics helpline online facilities 
and other routes regarding potential 
breaches of the code of conduct 
together with the results of inquiries  
into those matters
  quarterly reports received from the us 
compliance officer responsible for 
monitoring the us business’ compliance 
with the cia for more information about 
the obligations imposed on the board by 
the cia see below
  reports from the group treasury function 
and in particular reports concerning the 
group’s liquidity and cash position and 
the appropriateness of its cash 
management policies in the context of  
the current economic situation
  going concern assessment and adoption 
of the going concern basis in preparing 
this annual report and the financial 
statements
  other reports on a quarterly basis 
concerning ia global compliance and 
finance including the internal audit plan 
and progress and plans of global 
compliance
  quarterly reports from the general 
counsel on the status of certain litigation 
matters and governmental investigations
  the amount of audit and nonaudit fees of 
the external auditor throughout 2013 the 
audit committee was satisfied throughout 
the year that the objectivity and 
independence of the external auditor 
were not in any way impaired by the 
nature of the nonaudit work undertaken 
by the external auditor during the year the 
level of nonaudit fees charged for such 
work or any other facts or circumstances 
further information about the audit and 
nonaudit fees for 2013 is disclosed in 
note 27 to the financial statements on 
page 184
  a review and assessment of the audit 
committee’s performance
in addition to its usual business as 
described above during 2013 members  
of the audit committee met individual 
managers or groups of managers on a 
number of occasions in order to gain a 
deeper insight into areas relevant to the 
audit committee’s work and to provide  
an opportunity to discuss specific areas  
of interest these included 
  receiving regular updates from  
the it team in connection with the  
transition from astrazeneca’s previous  
it infrastructure outsourcing provider  
to its new providers 
  considering a presentation on risk 
management in our supply chain 
particularly in emerging markets 
  receiving a report and presentation on 
sales and marketing compliancerelated 
activities in china and russia
  considering and debating a risk 
management update and an audit 
simplification initiative proposed by 
management
  understanding the nature of the cyber 
security threat to astrazeneca and our 
approach to mitigating that risk
  considering postinvestment reviews  
of a recent major business development 
transaction a capital expenditure project 
and a phase iii investment decision
in addition to the quarterly reporting 
stipulated by the cia as described above  
a number of other obligations required by 
the cia were discharged by members of  
the board and the audit committee during 
2013 for example all members of the 
board completed the annual ciarequired 
training addressing the code of conduct 
and the elements of the cia and the us 
compliance programme furthermore the 
board adopted a resolution signed by each 
board member in respect of the third  
12 month reporting period under the cia 
the resolution summarised the board’s 
oversight of the us compliance programme 
and stated that to the best of the board’s 
knowledge astrazeneca pharmaceuticals 
lp and astrazeneca lp astrazeneca’s 
principal us trading entities have 
implemented an effective us compliance 
programme to meet us federal healthcare 
programme fda and cia requirements 
significant issues considered by the 
audit committee in 2013
the audit committee determined that the 
significant issues considered during the  
year were
  revenue recognition
  impairment of intangible assets
  litigation and contingent liabilities
  pension accounting 
  tax accounting
revenue recognition
the us is our largest single market and 
sales accounted for 37 7 of our revenue  
in 2013 revenue recognition particularly  
in the us is impacted by rebates 
chargebacks cash discounts and returns 
for more information see the financial 
review from page 83 the audit committee 
pays particular attention to management’s 
estimates of these items their analysis  
of any unusual movements and their  
impact on revenue recognition informed  
by commentary from the external auditor 
impairment of intangible assets
the group has significant intangible assets 
arising from the acquisition of businesses 
and ip rights to medicines which are both  
in development and on the market in his 
quarterly report to the audit committee  
the cfo outlines the carrying value of the 
group’s intangible assets and in respect of 
those intangible assets which are identified 
as at risk of impairment the difference 
between the carrying value and 
management’s current estimate of 
discounted future cash flows for ‘at risk’ 
products the headroom products will  
be identified as at risk either because  
the headroom is limited or because for 
example in the case of a medicine in 
100 astrazeneca annual report and form 20f information 2013
corporate governance  audit committee report development a significant development 
milestone such as the publication of  
clinical trial results could significantly alter 
management’s forecasts for the product 
the audit committee questioned 
management on the robustness of the 
processes underpinning the cash flow 
projections and the timing of the  
impairment reviews
in december 2013 as part of the annual 
impairment review the audit committee 
reviewed the management processes  
for estimating future cash flows which 
resulted in the impairment of our diabetes 
product bydureon the audit committee 
was satisfied that those processes were 
sufficiently robust
litigation and contingent liabilities
litigation particularly that relating to the 
enforcement and defence of ip rights 
protecting medicines is a significant  
feature of the pharmaceutical industry  
in addition to ip litigation the group is 
involved in a number of government 
investigations and is a defendant in  
certain product liability actions the audit 
committee receives regular updates from 
the general counsel and is informed by 
commentary from the external auditor  
on the status of those litigation matters 
which might result in fines or damages 
awards against the company in order  
to assess whether provisions should be 
taken and if so when and in what amounts
pension accounting
pension accounting continues to be  
a significant area of focus in 2013 the  
audit committee considered the adjustments 
associated with the application of  
ias 19 2011 
tax accounting
although the audit committee recognised 
that there continues to be significant 
exposure associated with specific tax 
contingencies it noted that there were no 
significant developments in this exposure 
during the year
internal controls
at the february 2014 meeting the cfo 
presented to the audit committee the 
conclusions of the ceo and the cfo 
following the evaluation of the effectiveness 
of our disclosure controls and procedures 
required by item 15a of form 20f at 31 
december 2013 based on their evaluation 
the ceo and the cfo concluded that as  
at that date we maintain an effective system 
of disclosure controls and procedures
there was no change in our internal control 
over financial reporting that occurred during 
the period covered by this annual report 
that has materially affected or is reasonably 
likely to materially affect our internal control 
over financial reporting
appointing the auditor and safeguards 
on nonaudit services
we noted in our 2012 annual report that 
having reviewed the changes to the uk 
corporate governance code with regard  
to putting the external audit contract out  
to tender at least every 10 years and 
cognisant of the fact that the lead audit 
partner at kpmg rotated in 2013 the audit 
committee determined that the audit would 
be put out to tender by 2018 in accordance 
with the transitional guidance issued by the 
frc kpmg was first appointed as sole 
external auditor to astrazeneca in 2001 
following a competitive tender the new eu 
audit reform framework if approved would 
not impact upon the audit committee’s 
decision to put the audit out to tender  
by 2018
nonaudit services
the audit committee maintains a policy  
the nonaudit services policy and 
procedures for the preapproval of all audit 
services and permitted nonaudit services 
undertaken by the external auditor the 
principal purpose of which is to ensure that 
the independence of the external auditor is 
not impaired the policies and procedures 
cover three categories of work audit 
services auditrelated services and tax 
services the policies define the type of 
work that falls within each of these 
categories and the nonaudit services that 
the external auditor is prohibited from 
performing under the rules of the sec and 
other relevant uk and us professional and 
regulatory requirements the preapproval 
procedures permit certain audit audit
related and tax services to be performed  
by the external auditor during the year 
subject to fee limits agreed with the audit 
committee in advance the cfo supported 
by the vicepresident financial planning 
and reporting monitors the status of all 
services being provided by the external 
auditor the procedures also deal with 
placing nonaudit work out for tender where 
appropriate authority to approve work  
in excess of the preagreed fee limits is 
delegated to the chairman of the audit 
committee together with one other  
audit committee member in the first 
instance a standing agenda item at  
audit committee meetings covers the 
operation of the preapproval procedures 
and regular reports are provided to the  
full audit committee 
in 2013 nonaudit services provided  
to the company by kpmg included tax 
compliance services and audit services in 
relation to employee benefit funds in each 
case within the scope of the preapproved 
services set out in the nonaudit services 
policy the audit committee supports 
management’s decision to enter into an 
outsourcing arrangement for all tax and 
statutory accounts preparation work which 
once implemented during 20132014  
will result in such work currently undertaken 
by kpmg transitioning to another firm  
in addition for other nonaudit services 
management has determined that the 
company’s auditors should only be 
engaged where they are the only credible 
choice of service provider for a particular 
piece of work 
fees paid to the auditor for audit 
auditrelated and other services are 
analysed in note 27 to the financial 
statements on page 184 fees for  
nonaudit services amounted to 39  
of the fees paid to kpmg for audit 
auditrelated and other services in 2013 
assessing external audit effectiveness
in accordance with its normal practice  
the audit committee considered the 
performance of kpmg it also considered 
kpmg’s compliance with the independence 
criteria under the relevant statutory 
regulatory and ethical standards applicable 
to auditors and assessed its objectivity 
taking into account the level of challenge 
provided around the critical estimates  
and judgements involved in our financial 
reporting and the quality of our internal 
control over financial reporting having 
considered all these factors the audit 
committee unanimously recommended  
to the board that a resolution for the 
reappointment of kpmg as the company’s 
external auditor for the year ending  
31 december 2014 be proposed to 
shareholders at the agm in april 2014 
consistent with current market practice 
kpmg’s services to the company are 
provided pursuant to terms of engagement 
which are reviewed by the audit committee 
neither these terms of engagement nor any 
other agreement include any contractual 
obligations under which the board would  
be prevented from appointing a different 
audit firm were they to consider this to be  
in the best interests of the group the  
audit committee through management 
continues to maintain contact and dialogue 
with other major audit firms who are familiar 
with the group’s business for succession 
purposes as required 
additional information financial statements corporate governance strategic report
101 astrazeneca annual report and form 20f information 2013 102 astrazeneca annual report and form 20f information 2013
corporate governance 
tsr and free cash flow the remuneration 
committee determined that two additional 
measures should be added first the 
introduction of an achieve scientific 
leadership measure which for awards 
granted in 2013 comprised new molecular 
entities nme generation major lifecycle 
management approvals volume of nmes  
in phase iii peakyear sales to track the 
value of pipeline output and phase ii starts 
second we added a return to growth 
measure which for awards granted in 2013 
was based on quantitative mediumterm 
sales targets relating to the five growth 
platforms described in the strategy brilinta 
diabetes respiratory emerging markets 
and japan 
the remuneration committee also 
considered the performance conditions 
attaching to the astrazeneca incentive plan 
azip for 2013 the two azip fouryear 
performance hurdles were payment of a 
dividend equal to or greater than 280 
and a dividend cover floor of 15 times eps 
calculated on a core basis we believe that 
core eps provides the best indicator of 
cash cover for the dividend the azip award 
is structured such that the performance test 
will be failed if either the dividend per share 
falls below 280 or if the dividend cover 
falls below the floor in any of the years of 
the performance period
when pascal soriot joined us he forfeited  
a number of lti awards made to him by  
his previous employer the value of these 
awards was carefully quantified and an azip 
award made on his recruitment in october 
2012 formed part of the compensation for 
this loss this azip award was underpinned 
by the ‘old’ performance measures the 
remuneration committee wished to align 
mr soriot’s lti arrangements to the new 
strategy therefore the remuneration 
committee required mr soriot to forfeit his 
2012 azip award and substituted it with a 
2013 azip award based on the new metrics 
aligned to the new strategy as described 
above the 2013 award was over the same 
target being 250 you will see in the 
annual report on remuneration the 
implementation report that his base pay 
has been increased effective 1 january 
2014 by 3 in conformity with the base pay 
increase for the uk employee population 
and that his defined contribution pension 
funding has been increased from 24 of 
base pay per annum to 30 of base pay 
per annum which we believe to be more in 
line with current market practice for ftse30 
ceos we have granted marc dunoyer an 
annualised bonus award for 2013 of 129 
of base salary in respect of his service as 
cfo on appointment to which he became 
an executive director he has been granted 
an attarget lti award of 200 of base 
salary there is no change to his base salary 
or to his pension entitlement for 2014
whilst the outlook for 2014 in terms of 
scientific progress and pipeline strength  
is more promising the commercial and 
financial challenges facing the business  
are likely to persist these features have 
informed our setting of targets for 2014 
the remuneration committee recognises 
the need to be thoughtful in structuring 
performance measures so that they are 
sufficiently stretching to stimulate value 
creation for shareholders but not so 
stretching that incentivisation is weakened
key matters in 2013
in 2013 in light of our new strategy focused 
on scientific leadership and returning to 
growth the remuneration committee  
took the opportunity to review the lti 
arrangements for the company’s senior 
executives at the agm in april 2013  
and following consultation with our major 
shareholders i shared with you changes to 
astrazeneca’s lti programme which were 
developed in order more closely to align 
performance measures to the company’s 
strategy such that employees are rewarded 
for the delivery of the company’s key 
strategic priorities prior to these changes 
the performance share plan psp operated 
with two equal performance measures  
dear shareholder
we have sought in our 
deliberations and judgements 
throughout 2013 to take  
account of both the underlying 
performance of astrazeneca  
and the experience of our 
shareholders 
in march 2013 our new ceo pascal soriot 
set out his strategy for achieving scientific 
leadership and returning the company to 
growth during 2013 a number of key 
strategic milestones were achieved the 
acquisition of companies such as pearl 
therapeutics omthera amplimmune and 
spirogen has bolstered our pipeline and 
strengthened our capabilities in each of our 
core therapy areas they have also brought 
with them leading scientific innovations and 
talented scientists licensing agreements 
and strategic collaborations such as our 
collaboration with fibrogen have created 
further additions to the latestage portfolio 
however we recognise that these 
achievements must be considered in the 
context of financial performance in 2013 
below that of 2011 and 2012 whilst there 
has been growth across our five key 
commercial platforms revenue and core 
operating profit have declined with the loss 
of exclusivity on some of our principal 
marketed products as expected this has 
resulted in a fall in core eps our shortterm 
tsr performance however has improved 
including into 2014 
how has this performance fed through  
into remuneration outcomes for the 
executive directors we believe that  
the new leadership team is having a 
substantial impact on the actual and  
future performance of the company the 
remuneration committee awarded pascal 
soriot an annual bonus for 2013 of 170 of 
base salary and an above target longterm 
incentive lti award of 285 of base salary 
directors’ 
remuneration report
john varley 
nonexecutive director and chairman 
of the remuneration committee additional information financial statements corporate governance strategic report
103 astrazeneca annual report and form 20f information 2013
number of shares as the original award  
and the fouryear performance period and 
fouryear holding period will continue to 
apply which will result in mr soriot’s new 
award vesting one year later than the 
original award
looking forward
at our agm in april 2014 we will seek  
your approval to renew the psp plan rules 
which expire in april 2015 the original plan 
rules will remain substantially unchanged 
except for three important amendments 
which we hope will be welcomed by our 
shareholders first we propose to remove 
the remuneration committee’s discretion  
to vest an award at above 100 second 
we will introduce a twoyear holding period 
after the threeyear performance period this 
will apply to executive directors only this is 
in direct response to growing shareholder 
appetite for lti plans with a longer life 
finally we will include malus in relation to 
unvested awards and clawback in relation 
to vested awards provisions which can be 
exercised in circumstances that result in 
significant reputational damage to the 
company financial mismanagement or 
serious personal misconduct we will  
also add the same malus and clawback 
provisions to the other astrazeneca lti  
plan rules and the deferred bonus plan
senior leadership changes
given the senior leadership changes during 
2013 the remuneration committee gave 
careful consideration to a number of related 
remuneration matters in particular the 
departure of simon lowth as cfo and  
the appointment of marc dunoyer as his 
successor as mr lowth resigned he  
will not be paid a bonus for 2013 and his 
outstanding lti awards were forfeited in  
full he was an extremely talented cfo  
and provided strong leadership through 
uncertain times as interim ceo he gave 
excellent support to pascal soriot when  
he was first appointed as ceo and the 
remuneration committee felt it appropriate 
to exercise its discretion to allow mr lowth 
to retain his deferred bonus plan shares  
as these related to strong performance  
in prior years marc dunoyer joined 
astrazeneca in june 2013 as evp  gpps 
and was appointed cfo in november 2013 
mr dunoyer’s compensation arrangements 
are in line with the market and his ongoing 
remuneration arrangements are somewhat 
below those of his predecessor 
shareholder engagement
in october 2013 new directors’ reporting 
regulations came into effect requiring  
all uk listed companies to publish their 
remuneration policy the remuneration 
policy report page 114 and to explain  
how they implemented that policy in the 
implementation report page 104 at the 
company’s 2014 agm you will have a 
binding vote on the remuneration policy 
report and an advisory vote on the 
implementation report 
as a matter of course we have regular 
dialogue with a number of our major 
shareholders which in december 2013 
included a consultation meeting attended by 
the chairman of the board leif johansson 
the chairman of the audit committee  
rudy markham and me at this meeting  
we outlined our approach to some of the 
more substantive components of our 
remuneration policy this year our 
shareholders’ views and insights have been 
at the forefront of our minds as we have 
considered and proposed amendments  
to our existing remuneration policy in order 
to enable us to continue to attract and retain 
the best people it is proposed that our new 
remuneration policy will come into effect  
on 1 january 2015 and we intend that it  
will remain in place for three years we 
recognise the desire of our shareholders  
for transparency including in how we 
determine quantify and assess the outcome 
relative to performance measures and 
targets however we also recognise the 
targets’ commercial sensitivity accordingly 
we have disclosed in the implementation 
report a level of detail that provides 
transparency about astrazeneca’s 
approach to remuneration without detailing 
information we consider commercially 
sensitive generally our approach is to 
disclose performance measures and 
weightings in advance ie for the current 
performance period and outcomes  
against those targets in arrears ie for  
the past performance period while our 
remuneration policy will not come into 
effect until 1 january 2015 the 
remuneration committee intends to 
operate substantially within the policy  
during 2014
as you read our implementation and 
remuneration policy reports i hope you 
will see that in the judgements we have 
made during the year the remuneration 
committee has endeavoured to support  
the company by incentivising the senior 
leaders and all our employees to focus  
on the delivery of our strategy while also 
being careful to protect the interests of 
shareholders the remuneration committee 
seeks to ensure that on the one hand 
reward outcomes are not purely mechanistic 
but on the other that the exercise of its 
discretion is not seen by employees to be 
arbitrary or unfair our remuneration policy 
for which we seek your support through  
the binding vote is consistent with this 
approach we see remuneration resource 
as your resource and we attempt to spend  
it wisely and proportionately to increase the 
value of your shareholdings in astrazeneca 
we greatly value our ongoing dialogue with 
our shareholders and we welcome your 
feedback on this directors’ remuneration 
report 
yours sincerely
john varley 
chairman of the remuneration committee 
“ the remuneration committee’s core 
responsibility is to develop and execute  
a remuneration strategy that supports  
the successful implementation of the 
company’s business strategy” 104 astrazeneca annual report and form 20f information 2013
corporate governance  directors’ remuneration report
governance
remuneration committee membership
the remuneration committee members are john varley chairman of the remuneration committee leif johansson rudy markham 
and nancy rothwell mr johansson was considered by the board to be independent upon his appointment as chairman of the board  
in accordance with the uk corporate governance code the test of independence is not appropriate in relation to the chairman after  
his appointment all other members of the remuneration committee are independent nonexecutive directors the deputy company 
secretary acts as the secretary to the remuneration committee
how did the remuneration committee spend its time during 2013
the remuneration committee met 13 times in 2013 the individual attendance record of remuneration committee members is set out 
on page 91 at the invitation of the remuneration committee except where their own remuneration was being discussed the ceo the 
evp  human resources  corporate affairs the interim evp  human resources  corporate affairs the vicepresident people practices 
and services the executive compensation director and the company secretary attended one or more remuneration committee 
meetings in 2013 and provided advice and services that materially assisted the remuneration committee in addition all meetings of the 
remuneration committee were attended by one or both of carol arrowsmith and nicki demby each representing deloitte llp deloitte 
the remuneration committee’s independent adviser 
the work of the remuneration committee focused on the following principal matters in 2013 and february 2014 
  executive directors’ remuneration arrangements on appointment 
change of role and departure as described elsewhere in this 
directors’ remuneration report specifically the appointment of 
mr dunoyer as cfo and the termination of mr lowth’s 
employment with the company
  the terms of other senior executives’ remuneration packages on 
appointment promotion or termination
  the assessment of group and individual performance against 
performance targets to determine the level of annual bonuses for 
performance during 2012 and to set executive bonus targets 
during 2013
  the assessment of performance against targets to determine the 
level of vesting in 2013 under the psp  and the setting of psp and 
azip performance thresholds for awards made in 2013
  the determination of individual awards made to set members 
and other participants under the group’s main lti plans the psp  
the azip and the astrazeneca global restricted stock plan
  the determination of restricted share awards to a number of 
senior executives under the astrazeneca restricted share plan
  proposed changes to the performance measures for the 
shortterm and lti arrangements
  a review of a report providing an analysis of key aspects of 
reward across the wider group
  a benchmarking review of the remuneration committee’s 
activities and policies against institutional investor guidelines
  a review of the shareholding requirements for executive directors 
and the shareholding levels of other set members
  a review of the sources and robustness of market remuneration 
data provided to the remuneration committee
  a review of the pension entitlements of executive directors and 
other set members
  the determination of the executive directors’ and other set 
members’ remuneration in 2014
  a review of the process for a periodic review of fees for the 
nonexecutive directors including the chairman
  a review of the performance of deloitte the independent adviser 
to the remuneration committee
  a tender process for the appointment of the independent adviser 
to the remuneration committee
  the assessment of group and individual performance against 
performance targets to determine the level of annual bonuses for 
performance during 2013 and to set annual bonus targets for 
2014 and lti awards to be granted during 2014
  the annual review of the performance of the remuneration 
committee
  the preparation review and approval of this directors’ 
remuneration report
independent adviser to the remuneration committee
the remuneration committee retains deloitte represented by carol arrowsmith and nicki demby who report directly to the 
remuneration committee and its chairman and who provided independent advice on various matters considered by the remuneration 
committee in 2013 this service was provided to the remuneration committee on a time spent basis at a cost to the company of 
£145970 including vat during the year deloitte also provided taxation advice and other specific nonaudit services to the group  
the remuneration committee reviewed the potential for conflicts of interest and judged that there were no conflicts deloitte is a member 
of the remuneration consultants’ group which is responsible for the stewardship and development of the voluntary code of conduct in 
relation to executive remuneration consulting in the uk the principles on which the code is based are transparency integrity objectivity 
competence due care and confidentiality deloitte adheres to the code
during the year the remuneration committee conducted a tender process inviting five specialist firms to apply for the role of 
independent adviser to the committee the tender process which involved interviews with both the company’s management and  
the chairman of the remuneration committee concluded with the reappointment of deloitte as the independent adviser
annual report on remuneration the implementation report  additional information financial statements corporate governance strategic report
105 astrazeneca annual report and form 20f information 2013
shareholder context
at the company’s agm held in april 2013 the resolution to approve the directors’ remuneration report for the year ended 
31 december 2012 was passed with 9374 of the votes cast for the resolution and 626 of the votes cast against the resolution 
59068345 votes were withheld
resolution text votes for  for votes against  against total votes cast
 of issued share 
capital voted votes withheld
ordinary resolution to approve the 
directors’ remuneration report for 
the year ended 31 december 2012
768674510 9374 51291844 626 819966354 6555 59068345
basis of preparation of this directors’ remuneration report
this directors’ remuneration report has been prepared in accordance with the large and mediumsized companies and groups 
accounts and reports amendment regulations 2013 the regulations and meets the relevant requirements of the financial conduct 
authority’s listing rules as required by the regulations a resolution to approve this directors’ remuneration report will be proposed  
at the agm on 24 april 2014
terms of reference
a copy of the remuneration committee’s terms of reference is available on our website wwwastrazenecacom the remuneration 
committee conducted a review of its terms of reference during 2013 a small number of minor changes were recommended to the board 
principally to reflect the regulations and updated guidance issued by the association of british insurers during the year the changes 
were approved by the board in february 2014
what did we pay our directors
directors’ single total figure remuneration audited 
2013 
base 
salary 
and fees
1
£’000
2012 
base 
salary 
and fees
1
£’000
2013 
taxable 
benefits
2
£’000
2012 
taxable 
benefits
2
£’000
2013 
annual 
bonus
3
£’000
2012 
annual 
bonus
3
£’000
2013
longterm 
incentives 
vesting
£’000
2012 
longterm 
incentives 
vesting
4
£’000
2013 
pension 
benefits
5
£’000
2012 
pension 
benefits
5
£’000
2013
awards on 
recruitment
£’000
2012 
awards on 
recruitment
6
£’000
2013 
total
£’000
2012 
total
£’000
executive 
directors
pascal soriot 1100 275 110 26 1870 335 – – 264 66 – 2991 3344 3693
marc dunoyer 113 – 10 – 146 – – – 27 – – – 296 –
simon lowth 579 740 48 56 – 1034 – 1301 139 158 – – 766 3289
total 1792 1015 168 82 2016 1369 – 1301 430 224 – 2991 4406 6982
nonexecutive 
directors
leif johansson 540
7
318
7
– – – – – – – – – – 540 318
geneviève berger 85 58 – – – – – – – – – – 85 58
bruce burlington 105 105 – – – – – – – – – – 105 105
graham chipchase 95 65 – – – – – – – – – – 95 65
jeanphilippe 
courtois
95 95 – – – – – – – – – – 95 95
rudy markham 130 124 – – – – – – – – – – 130 124
nancy rothwell 107 107 – – – – – – – – – – 107 107
shriti vadera 95 95 – – – – – – – – – – 95 95
john varley 140 130 – – – – – – – – – – 140 130
marcus wallenberg 85 85 – – – – – – – – – – 85 85
total 1477 1182 – – – – – – – – – – 1477 1182
1
  mr soriot was appointed as ceo with effect from 1 october 2012 with an annual rate of base salary in 2012 and 2013 of £1100000 mr dunoyer was appointed as cfo with effect from 1 november 
2013 with an annualised base salary of £680000 the base salary for mr lowth’s position as cfo in 2013 increased from £660000 to £710000 with effect from 1 april 2013 mr lowth ceased to be 
a director on 31 october 2013 mr lowth received a temporary base salary increase of £20000 gross per month effective from june to september 2012 inclusive during his period as interim ceo 
creating an annualised base pay figure of £900000 this temporary base salary increase was not pensionable
2
   executive directors may select benefits within the company’s uk flexible benefits programme or can select to take all or any remaining allowance after the selection of benefits in cash in 2013  
the executive directors principally took the allowance in cash £102000 in respect of mr soriot £9000 in respect of mr dunoyer and £44000 in respect of mr lowth and selected other benefits 
including healthcare insurance deathinservice provision and tax preparation advice
3
  onethird of the pretax bonus is deferred into ordinary shares these will be held for three years before being released subject to continued employment the bonus is not pensionable
4
  for mr lowth for 2012 this sum is made up of a revised sum of £816000 being the market value of shares on the date of vesting in march 2013 in respect of the 2010 psp award threeyear 
performance period 20102012 which using an estimated market value based on the london stock exchange closing price on 30 january 2013 was reported as £771000 in our 2012 directors’ 
remuneration report £126000 being cash paid on the vesting of this psp award in respect of dividends accrued and £359000 being the intrinsic gain on share options awarded in 2009 on the 
date of vesting in march 2012
5
  equivalent to 24 of base salary taken as a cash alternative to participation in a defined contribution pension scheme
6
  for mr soriot for 2012 this sum is made up of £991000 being cash paid to compensate mr soriot in respect of his forfeited bonus opportunity for 2012 from his previous employer paid at his 
previous employer’s target bonus rate and prorated from 1 january 2012 to 30 september 2012 mr soriot was required to invest this sum after payment of income tax in astrazeneca shares  
and an award of £2000000 representing the value of an award of 69108 restricted ordinary shares at a price of 2894 pence per share by way of compensation for the loss of ltis from his previous 
employer 27644 shares representing 40 of the award vested on 31 october 2013 in accordance with the vesting schedule and the remaining 60 of the award will vest in equal proportions 
subject to the company’s closed trading periods on 1 october 2014 and 1 october 2015 the value and structure of the restricted share award mirrors the value and structure of the award that  
mr soriot forfeited on his departure from his former employer accordingly no performance conditions apply to the restricted share award made to mr soriot on his recruitment
7
 includes office costs of £40000 for 2013 and £19000 for 2012 106 astrazeneca annual report and form 20f information 2013
corporate governance  directors’ remuneration report
additional notes to the directors’ single total figure remuneration table
annual bonus
for 2013 the principal drivers of annual bonus opportunity were measures for achieve scientific leadership 30 return to growth 
30 and achieve group financial targets 40 together with individual performance details of which are set out below the ceo  
had a target annual bonus of 100 of base salary range 0180 and the cfo had a target annual bonus of 90 of base salary  
range 0150
onethird of the pretax bonuses earned for the year will be deferred into ordinary shares which will vest three years from the date of 
deferral subject to continued employment
the performance measures for the annual bonus opportunity the weighting actual performance during the year and level of award are 
detailed in the tables below
the precise targets or target ranges set at the beginning of the performance period are closely aligned to the company’s strategic 
priorities and in the judgement of the board disclosure of these would compromise the company’s competitive position versus its peers 
and therefore be prejudicial to the interests of the company and its shareholders as the annual bonus and psp performance measures 
are indicators of the company’s longerterm strategic priorities we believe that the targetstarget ranges are and will remain commercially 
sensitive our approach therefore is to disclose performance measures and weightings in advance ie for the current performance 
period and performance outcomes against those measures in arrears ie for the past performance period with an explanation of the 
reward consequences for the executive directors
the remuneration committee exercises its discretion in judging the annual bonus award for an individual executive director taking into 
account group and individual performance against targets in 2013 the remuneration committee determined that mr soriot’s annual 
bonus should amount to 170 of base salary representing 94 of the potential maximum the remuneration committee determined 
that mr dunoyer’s bonus should amount to 129 of base salary on an annualised basis representing 86 of the potential maximum  
the remuneration committee’s decisions recognise the impact the new leadership team is having on actual and future performance  
of the company including the outcome of the 2013 group scorecard
1 achieve scientific leadership
these measures reflect the company’s ability to deliver innovation to the market in 2013 we made significant progress towards achieving 
scientific leadership and exceeded each of our pipeline targets 
performance measures for 2013 weighting actual aggregate performance
phase iii investment decisions
6 of target bonus per measure exceeded target
nme major submissions 
external licensing opportunities in phase iii
latestage external opportunities
phase ii starts
pascal soriot level of award £823000 representing 44 of total annual bonus outcome
marc dunoyer level of award £64000 representing 44 of total annual bonus outcome
2 return to growth
these measures are based on quantitative sales targets for 2013 relating to the company’s five growth platforms brilinta diabetes 
respiratory emerging markets and japan in 2013 we did not in aggregate meet our return to growth targets however our five key 
growth platforms delivered an incremental 12 billion of revenue at cer 
performance measures for 2013 weighting actual aggregate performance
deliver brilinta target
6 of target bonus per measure below target
build diabetes franchise
deliver sales growth in emerging markets
deliver respiratory goals
deliver japan growth target
pascal soriot level of award £224000 representing 12 of total annual bonus outcome
marc dunoyer level of award £18000 representing 12 of total annual bonus outcome
3 achieve group financial targets
these are based on the company’s key financial measures in 2013 our financial performance was in line with market expectations and 
reflects the continuing impact of loss of exclusivity on several brands 
performance measures for 2013 weighting outcome actual performance
achieve cash flow from operating activities target 10 of target bonus  7400m exceeded target
achieve core eps target 20 of target bonus  505 met target 
achieve overall revenue target 10 of target bonus  25711m met target 
pascal soriot level of award £823000 representing 44 of total annual bonus outcome
marc dunoyer level of award £64000 representing 44 of total annual bonus outcome additional information financial statements corporate governance strategic report
107 astrazeneca annual report and form 20f information 2013
share interests awarded during the year audited
deferred bonus plan
pascal soriot simon lowth
1
interest awarded 3799 ordinary shares awarded on 25 february 2013 11728 ordinary shares awarded on 25 february 2013
description of interest onethird of the pretax annual bonus for executive directors is deferred into ordinary shares or adss typically  
the shares are acquired on the open market at the prevailing market price at the date of the vesting the number of 
shares acquired reflects the number of shares which would have been acquired at the prevailing market price on the 
award date
basis of award automatic deferral of onethird of annual bonus into ordinary shares or adss
face value of award £112000 based on a grant price of  
2939 pence per share
£345000
1
 based on a grant price of  
2939 pence per share
vesting level at threshold performance
2
100
end of performance period
3
25 february 2016
summary of performance measures and targets no performance conditions apply but vesting is ordinarily subject to continued employment
1
  mr lowth ceased to be a director of the company on 31 october 2013 the remuneration committee exercised its discretion by determining that mr lowth’s deferred bonus plan awards for 2010 
10281 shares 2011 9001 shares and 2012 11728 shares will vest on their predetermined vesting dates the 2010 award will vest on 25 february 2014 the 2011 award will vest on 24 february 
2015 and the 2012 award will vest on 25 february 2016
2
 no performance conditions apply under the deferred bonus plan other than continued employment
3
 as no performance conditions apply this date represents the end of the holding period
performance share plan psp
pascal soriot marc dunoyer simon lowth
1
interest awarded 125113 ordinary shares awarded on  
11 june 2013
90853 ordinary shares awarded on  
1 august 2013
67834 ordinary shares awarded on  
11 june 2013
description of interest the psp provides for the grant of awards over ordinary shares or adss the vesting date is the third anniversary of the date of the award subject 
to performance and continued employment
basis of award annual target award expressed as a percentage 
of base salary
when granting lti awards to mr soriot the 
remuneration committee applied a target 
expected value of 250 of base salary 
weighted 75 in favour of the psp and 25  
in favour of the azip  for the psp  we assume 
an expected value on vesting of 50 of the 
value of the award at grant which equates  
to an ontarget award at face value of 375  
of base salary
annual target award expressed as a 
percentage of annualised base salary in 
respect of mr dunoyer’s position as evp 
gpps and an additional award on recruitment 
to compensate mr dunoyer for the forfeiture  
of unvested lti awards from his previous 
employer
mr dunoyer did not receive any psp awards 
during the year in respect of his position  
as a director
annual target award expressed as a 
percentage of base salary
when granting lti awards to mr lowth the 
remuneration committee applied a target 
expected value of 210 of base salary 
weighted 75 in favour of the psp and 25 in 
favour of the azip for the psp we assume an 
expected value on vesting of 50 of the value 
of the award at grant which equates to an 
ontarget award at face value of 315 of mr 
lowth’s base salary at the time of the award
face value of award £4125000 based on a grant price of 3297 
pence per share
£3000000 based on a grant price of 3302 
pence per share
£2236000 based on a grant price of 3297 
pence per share
vesting level at 
threshold 
performance
25
end of performance 
period
31 december 2015
summary of 
performance 
measures  
and targets
a combination of measures focused on our scientific commercial and financial performance assessed over the relevant threeyear performance 
period
  twenty five percent of the award is based on the relative tsr performance of the company against a predetermined peer group of global 
pharmaceutical companies more information about the tsr performance of the company including the company’s peer group is set out in 
the total shareholder return section from page 110
  twenty five percent of the award is based on the achievement of a cumulative free cash flow target
  twenty five percent of the award is based on achieve scientific leadership measures covering five areas an nme target which reflects the 
company’s ability to deliver innovation to the market major lifecycle management approvals which represent a good proxy for neartomid 
term growth the volume of nmes in phase iii and their registration a target for peakyear sales to track the value of pipeline output and 
delivery from our research and early development organisation assessed by phase ii starts
  twenty five percent of the award is based on return to growth measures based on quantitative sales targets relating to the company’s five 
growth platforms brilinta diabetes respiratory emerging markets and japan
the precise targets or target ranges set at the beginning of the performance period are closely aligned to the company’s strategic priorities  
and in the judgement of the board disclosure of certain of these may compromise the company’s competitive position versus its peers  
and therefore be prejudicial to the interests of the company and its shareholders as the psp performance measures are an indicator of the 
company’s longerterm strategic priorities we believe that these targetstarget ranges are and will remain commercially sensitive 
more information about the psp’s performance measures is set out on page 118 of the remuneration policy report
1
  mr lowth ceased to be a director on 31 october 2013 and all outstanding lti awards made under the psp lapsed in accordance with the psp plan rules on the termination of his employment  108 astrazeneca annual report and form 20f information 2013
corporate governance  directors’ remuneration report
share interests awarded during the year audited continued
astrazeneca investment plan azip
pascal soriot marc dunoyer simon lowth
1
interest 
awarded
89960 ordinary shares awarded on  
11 june 2013
8176 ordinary shares awarded on  
1 august 2013
11305 ordinary shares awarded on  
11 june 2013
description  
of interest
the azip provides for the grant of awards over ordinary shares or adss the vesting date is the eighth anniversary of the start of the performance 
period being 1 january in any given year subject to performance and continued employment
basis of award the award comprises
  mr soriot’s regular 2013 award with a face 
value of 625 of base salary
  a previously announced award which replaces 
that originally made when mr soriot joined the 
company in october 2012 
the forfeiture and replacement of the azip  
award was determined by the remuneration 
committee to be in the interests of shareholders 
as it more closely aligns mr soriot’s lti 
arrangements to the strategy announced by  
the company in march 2013
when granting lti awards to mr soriot the 
remuneration committee applied a target 
expected value of 250 of base salary weighted 
25 in favour of the azip and 75 in favour of 
the psp for the azip we assume an expected 
value on vesting of 100 of the value of the 
award at grant which equates to an ontarget 
award at face value of 625 of base salary
annual target award expressed as a percentage 
of base salary in respect of mr dunoyer’s position 
as evp gpps and an additional award to 
compensate mr dunoyer for the forfeiture of 
unvested lti awards from his previous employer
mr dunoyer did not receive any azip awards 
during the year in respect of his position as  
a director
annual target award expressed as a percentage 
of base salary
when granting lti awards to mr lowth the 
remuneration committee applied a target 
expected value of 210 of base salary weighted 
25 in favour of the azip and 75 in favour of 
the psp for the azip we assume an expected 
value on vesting of 100 of the value of the 
award at grant which equates to an ontarget 
award at face value of 525 of base salary at 
the time of the award
face value  
of award
£2966000
2
 based on a grant price of 3297 
pence per share
£270000 based on a grant price of 3302 pence 
per share
£373000 based on a grant price of 3297 pence 
per share
vesting level  
at threshold 
performance
100
end of 
performance 
period
31 december 2016
summary of 
performance 
measures  
and targets
dividend and dividend cover hurdles assessed over the relevant fouryear performance period
  dividend per share of 280 maintained or increased over the performance period
  dividend cover of 15 maintained over the performance period calculated on the basis of core eps
both performance hurdles must be achieved in each year of the performance period for the award to vest
more information about the azip’s performance hurdles is set out on page 119 of the remuneration policy report
1
  mr lowth ceased to be a director on 31 october 2013 and all outstanding lti awards made under the azip lapsed in accordance with the plan rules on the termination of his employment
2  
the azip award of 89960 shares comprises 20852 shares awarded in the normal operation of the plan in 2013 and an award of 69108 shares as part of the previously announced commitment on 
recruitment when mr soriot joined the company in october 2012
restricted share plan rsp
marc dunoyer
interest awarded 65505 ordinary shares awarded on 1 august 2013
description of interest grant of award over ordinary shares the rsp award will vest as follows
  9103 shares will vest on 15 june 2014 subject to continued employment
  41472 shares will vest on 15 june 2015 subject to continued employment
  14930 shares will vest on 1 august 2016 subject to the same performance conditions as the psp  and continued 
employment
basis of award award of ordinary shares to compensate mr dunoyer for the forfeiture of unvested lti awards from his previous 
employer
face value of award £2163000 based on a grant price of 3302 pence per share
vesting level at threshold performance 25 in respect of those shares subject to the same performance conditions as the psp
100 in respect of those shares subject to continued employment
end of performance period
1
31 december 2015 for shares subject to the same performance conditions as the psp
for those shares subject to continued employment the vesting dates are as detailed above
summary of performance measures and targets continued employment and in respect of those shares subject to the same performance conditions as the psp 
the performance measures are as detailed in the psp table on page 118 
1
 for those shares for which no performance conditions apply this date represents the end of the holding period additional information financial statements corporate governance strategic report
109 astrazeneca annual report and form 20f information 2013
variable pay timeline
for 2013 performancerelated pay
performance period  annual bonus  performance share plan  astrazeneca incentive plan
vestingholding period  annual bonus deferred share element  performance share plan  astrazeneca incentive plan
grant date  
vesting date  
feb 2014 junaug 2013 junaug 2016 feb 2017
1 jan 2013 31 dec 2013 31 dec 2014 31 dec 2015 31 dec 2016 1 jan 2021
payments to past directors audited
no payments were made during 2013 to former directors 
payments for loss of office audited
mr lowth ceased to be a director of the company on 31 october 2013 mr lowth received his base salary and benefits up until the  
end of october 2013 and did not receive any payments for the remainder of his notice period mr lowth was not eligible to receive an 
annual bonus for 2013 and all outstanding lti awards made under the psp and azip lapsed in accordance with the plan rules on 
resignation the remuneration committee exercised its discretion by determining that mr lowth’s deferred bonus plan awards for 2010 
10281 shares 2011 9001 shares and 2012 11728 shares would vest on their predetermined vesting dates the 2010 award will vest 
on 25 february 2014 the 2011 award will vest on 24 february 2015 and the 2012 award will vest on 25 february 2016 
service contracts
the notice periods and unexpired terms of executive directors’ service contracts at 31 december 2013 are shown in the table below 
subject to the arrangements in respect of the first 12 months of mr dunoyer’s service which are described below either astrazeneca or 
the executive director may terminate the service contract on 12 months’ notice 
executive director date of service contract unexpired term at 31 december 2013 notice period
pascal soriot 27 august 2012 12 months 12 months
marc dunoyer 15 march 2013 18 months
1
reducing to 12 months
1
1
 the notice period in mr dunoyer’s service contract was 24 months initially which is reducing by one month for each month of service and will stabilise from june 2014 at a 12 month notice period
remuneration context and our past performance
statement of change in remuneration of ceo compared to other employees
percentage change of ceo against 2012 average percentage change for employees against 2012
salary 0
1
3
taxable benefits 6 3
annual bonus 39 17
1
  mr soriot was appointed as ceo with effect from 1 october 2012 with an annualised base salary of £1100000 no increase in base salary was awarded to mr soriot in 2013 david brennan who 
relinquished his responsibilities as a director and as ceo on 1 june 2012 was eligible to receive an annualised base salary of £997223 for 2012
the employee comparator group comprises employees in the uk us and sweden we consider this to be an appropriate comparator 
group because it is representative of the group’s major functions commercial rd manufacturing and supply and enabling functions 
and the employee populations are well balanced in terms of seniority and demographics to provide a meaningful comparison of salary 
increases a consistent employee comparator group is used by which the same individuals appear in the 2012 and 2013 group 
ceo total remuneration table 
year ceo
ceo single total figure 
remuneration 
£’000
annual bonus
£’000
annual bonus payout 
against maximum 
opportunity 

value of ltis 
at vest
£’000
lti vesting rates 
against maximum 
opportunity 

2013 pascal soriot 3344 1870 94 – –
2012 pascal soriot
1
3693
2
335 68 – –
simon lowth
3
3289 1034 86 1301
4
38
4
david brennan
5
4147
6
– –
7
2538 38
2011 david brennan 7863 1326 74 5386 62
2010 david brennan 9690 1583 90 6937 100
2009 david brennan 5767 1751 100 2795 62
1
 mr soriot was appointed ceo with effect from 1 october 2012
2
  this figure includes £991000 paid to compensate mr soriot in respect of his forfeited bonus opportunity for 2012 and an award of £2000000 to compensate him for his loss of lti awards from his 
previous employer
3
  mr lowth acted as interim ceo from june to september 2012 inclusive the figures in relation to mr lowth represent his total remuneration for 2012 as detailed in the directors’ single total figure 
remuneration table on page 105
4
 mr lowth’s lti awards which vested during 2012 were not awarded or received in respect of his performance as interim ceo
5
 mr brennan ceased to be a director on 1 june 2012
6
 this figure includes mr brennan’s pay in lieu of notice of £914000
7
  mr brennan informed the remuneration committee that he did not wish to be considered for a bonus in respect of that part of 2012 in which he was ceo the remuneration committee determined 
that no such bonus would be awarded and also that there should be no bonus award relating to his contractual notice period 110 astrazeneca annual report and form 20f information 2013
corporate governance  directors’ remuneration report
relative importance of spend on remuneration 
the table below shows the overall spend on employee remuneration and expenditure on shareholder distributions through dividends  
and the company’s share repurchase programme
each of the figures below has been calculated in accordance with the group accounting policies and has been drawn from either the 
company’s consolidated statement of comprehensive income on page 132 or its consolidated statement of cash flows on page 135 
further information on the group’s accounting policies can be found from page 136
2013
m
2012
m
difference in spend 
between years
m
difference in spend 
between years

total employee remuneration
1
5276 5743 467 813
distributions to shareholders 
– dividends paid 3461 3665 204 557
– share repurchases
2
– 2635 2635
1
 this figure includes the remuneration paid to all employees in the group including the executive directors but excluding the nonexecutive directors who are not employees
2
  the share repurchase programme was suspended with effect from 1 october 2012
total shareholder return tsr
the chart below compares the tsr performance of the company over the past five years with the tsr of the ftse100 index this graph 
is rebased to 100 at the start of the relevant fiveyear period we have also included a ‘pharmaceutical peers average’ which reflects the 
tsr of the current comparator group
the additional chart below shows how the company’s tsr performance has compared with the tsr for the relevant companies 
 in the comparator group from the first day in the threeyear performance period in respect of the psp award made during the year to  
31 december 2013 and how the company ranks against those other companies on this basis
to alleviate any shortterm volatility the return index is averaged in the tsr calculations for each company over the three months prior to 
the start of the relevant performance period as stipulated in the psp rules and for the purposes of the chart below over the last three 
months of 2013
key az astrazeneca av abbvie bms bristolmyers squibb  g sk glaxosmithkline jj johnson  johnson lly eli lilly mrk merck  
nov novartis pfi pfizer rh roche holding sa sanofiaventis
astrazeneca pharmaceutical peers
average
ftse 100
100
125
150
175
200
jan
14
jan
13
jan
12
jan
11
jan
10
jan
09
tsr over a ﬁveyear period
0
10
20
30
40
50
60
lly mrk sa gsk az nov pfi jj rh av bms
astrazeneca tsr vs comparator group
1 january 2013 to 31 december 2013 
directors’ interests in shares audited
under the company’s articles all directors must within two months of their appointment acquire a beneficial interest in at least  
500 shares in the company all of the directors fulfil this requirement at the date of this directors’ remuneration report
in addition to this mandatory requirement the board imposes minimum shareholding requirements on the executive directors and set 
members the ceo is required to build a shareholding and hold shares amounting to 300 of base salary and the cfo is required to 
hold shares amounting to 200 of base salary each within five years of their date of appointment at the date of this report mr soriot has 
fulfilled this requirement but in view of mr dunoyer’s recent appointment as cfo he does not yet fulfil the shareholding requirement  
all other set members are required to build a shareholding over time and hold 125 of base salary as shares while in office
the board also encourages each nonexecutive director to build up over a period of three years a shareholding in the company  
with a value approximately equivalent to the basic annual fee for a nonexecutive director £75000 or in the case of the chairman 
approximately equivalent to his basic annual fee £500000 geneviève berger graham chipchase and bruce burlington are building  
their shareholding in the company over time all of the other nonexecutive directors including the chairman had fulfilled this expectation 
as at 31 december 2013 additional information financial statements corporate governance strategic report
111 astrazeneca annual report and form 20f information 2013
the tables below show the interests of the directors including the interests of their connected persons as such term is defined in the 
financial services and markets act 2000 in ordinary shares as at 31 december 2013 or on the date that they ceased to be a director  
if earlier as well as details of any director’s interests in options over the company’s shares all such interests were beneficial except as 
otherwise stated no director or senior executive beneficially owns or has options over 1 or more of the issued share capital of the 
company nor do they have different voting rights from other shareholders none of the directors has a beneficial interest in the shares  
of any of the company’s subsidiaries between 31 december 2013 and 6 february 2014 there was no change in the interests in ordinary 
shares shown in the tables below
executive directors
shares held options held
executive director
beneficially 
held
value of shares held 
beneficially as 
percentage 
of base salary
1
shareholding requirement 
to be built up within  
5 years of date of 
appointment
subject to performance 
conditions
subject to 
deferral
vested but 
unexercised
exercised 
during the year total
pascal soriot 151581 493 300 215073 45263 – – 411917
marc dunoyer 500 3 200 113959 50575 – – 165034
simon lowth
2
76479 385 200 232527
3
31010
4
– 65131
5
340016
1
 based on the london stock exchange closing price of 35745 pence per ordinary share on 31 december 2013
2
 mr lowth ceased to be a director of the company on 31 october 2013
3
  this figure represents mr lowth’s outstanding lti awards made under the psp and azip which lapsed when he ceased to be a director of the company on 31 october 2013 in accordance with the 
plan rules on resignation
4
  the remuneration committee determined that mr lowth’s deferred bonus plan awards for 2010 10281 shares 2011 9001 shares and 2012 11728 shares will vest on their predetermined 
vesting dates
5
  on 26 april 2013 mr lowth exercised an option over 65131 ordinary shares at an exercise price of 2280 pence per share the market price on the exercise date was 3316 pence per share 
providing a pretax gain on exercise of £675000
nonexecutive directors
the nonexecutive directors are not eligible to receive shares in the company that are the subject of performance conditions
beneficial interest in ordinary 
shares at 31 december 2012 change to beneficial interest
beneficial interest in ordinary 
shares at 31 december 2013 
leif johansson 28509 – 28509
geneviève berger 900 – 900
bruce burlington 1553 – 1553
graham chipchase 1500 – 1500
jeanphilippe courtois 2635 – 2635
rudy markham 2452 – 2452
nancy rothwell 2405 238 2643
shriti vadera 3000 – 3000
john varley 5444 – 5444
marcus wallenberg 63646 – 63646
implementation of remuneration policy in 2014
the company’s remuneration policy the policy will be subject to a binding shareholder vote at the company’s agm which will be held  
in april 2014 it is intended that the policy will remain in force for three years unless earlier revision is required and will be effective from  
1 january 2015 the company will have regard to the proposed policy in determining remuneration practices in the intervening period 
the implementation report detailing the implementation of the company’s remuneration policy in the previous year will be subject to  
an advisory shareholder vote at the company’s agm each year 
effective from 1 january 2014 mr soriot’s base salary was increased in line with increases in the uk employee population by 3 to 
£1133000 mr soriot’s pension allowance will increase to 30 of base salary per annum with effect from 1 january 2014 in line with 
pension allowances provided in comparable roles in the ftse30 mr soriot’s target annual bonus opportunity will remain unchanged  
at 100 of salary and his lti plan target will remain unchanged at 250 of base salary however the remuneration committee has 
exercised its discretion to grant an abovetarget lti award for 2014 of 285 of base salary 
in view of the timing of mr dunoyer’s appointment as cfo on 1 november 2013 the remuneration committee expects his remuneration 
will next be reviewed in line with the policy at the end of 2014 accordingly for 2014 mr dunoyer’s annualised base salary will remain 
unchanged at £680000 his target annual bonus opportunity will remain unchanged at 90 of base salary and his lti plan target award 
will remain unchanged at 200 of base salary the remuneration committee awarded mr dunoyer an lti award for 2014 of 200 of 
base salary
the performance measures and weightings for 2014 in respect of the lti plans azip and psp will be consistent with those described in 
the long term incentives section in the remuneration policy report from page 117  the annual bonus measures and weightings for 2014 
will be consistent with those set in 2013 as described in the summary table overleaf individual performance for each of the directors will 
be assessed by reference to individual objectives in line with the company’s objectives for the year
further information on the performance measures and targets set in respect of the annual bonus for 2013 can be found in the additional 
notes to the directors’ single total figure remuneration table section from page 105 and further information on the performance measures  
in respect of the company’s lti plans in 2013 can be found in the share interests awarded during the year tables from page 107 
board and committee fees for the nonexecutive directors including the chairman will be reviewed in 2014 further information on the 
nonexecutive directors’ board and committee fees can be found on page 126 of the remuneration policy report 112 astrazeneca annual report and form 20f information 2013
corporate governance  directors’ remuneration report
summary of executive directors’ remuneration for 2014
executive directors’ remuneration opportunity
pascal soriot ceo marc dunoyer cfo
base salary £1133000 £680000
pension provision 30 of base salary 24 of base salary
annual bonus target 100 of base salary normal range 0180 90 of base salary normal range 0150
lti plan award 285 of base salary
1
200 of base salary
1
 lti plan target remains at 250 of base salary
 
annual bonus
achieve scientific leadership 
performance measures weighting
return to growth 
performance measures weighting
achieve group financial targets 
performance measures weighting
phase ii startsprogressions 
6 of target bonus 
per measure
deliver brilinta target
6 of target bonus 
per measure
achieve cash flow from 
operating activities target
10 of target bonus
phase iii investment decisions build diabetes franchise achieve core eps target 20 of target bonus
nme and major lifecycle 
management submissions 
deliver sales growth in 
emerging markets
achieve overall  
revenue target
10 of target bonus
nme and major lifecycle 
management approvals
deliver respiratory goals
clinical stage external licensing 
and partnering opportunities
deliver japan growth target
lti plans
performance measures
psp a combination of measures focused on scientific leadership revenue generation tsr and free cash flow assessed over the relevant threeyear 
performance period
azip dividend and dividend cover hurdles assessed over the relevant fouryear performance period
  dividend per share of 280 maintained or increased over the performance period
  dividend cover of 15 maintained over the performance period calculated on the basis of core earnings per share
both performance hurdles must be achieved for the award to vest 
additional information executive directors’ share plans
deferred bonus plan
as described on page 11 there is a requirement for executive directors and set members to defer a certain proportion of any shortterm 
bonus payments into ordinary shares or adss the interests of directors at 31 december 2013 in ordinary shares or adss that are the 
subject of awards under these arrangements are shown below
number of 
shares
award price
pence grant date
1
vesting date
1
pascal soriot
total at 1 january 2013 –
2013 award 3799 2939 250213 250216
total at 31 december 2013 3799
1
 uk date convention applies
performance share plan psp
the interests of directors at 31 december 2013 in ordinary shares that are the subject of awards under the psp are shown below
number of 
shares
award price
pence grant date
1
vesting date
1
performance period
1
pascal soriot
total at 1 january 2013 –
2013 share award 125113 3297 110613 110616 010113 – 311215
total at 31 december 2013 125113
marc dunoyer
total at 1 january 2013 –
2013 share award 90853 3302 010813 010816 010113 – 311215
total at 31 december 2013 90853
1
 uk date convention applies additional information financial statements corporate governance strategic report
113 astrazeneca annual report and form 20f information 2013
astrazeneca investment plan azip
the interests of directors at 31 december 2013 in ordinary shares that are the subject of awards under the azip are shown below
number of 
shares
award price
pence grant date
1
vesting date
1
performance period
1
pascal soriot
2012 share award
2
69108 2894 261012 010120 010112 – 311215
total at 1 january 2013 69108
forfeiture of 2012 share award
2
69108
2013 share award
2
89960 3297 110613 010121 010113 – 311216
total at 31 december 2013 89960
marc dunoyer
total at 1 january 2013 –
2013 share award 8176 3302 010813 010121 010113 – 311216
total at 31 december 2013 8176
1
 uk date convention applies
2  
the azip award of 89960 shares comprises a regular 2013 award of 20852 shares and a previously announced award which replaces that originally made when mr soriot joined the company in 
october 2012
restricted share award
on 26 october 2012 mr soriot was granted an award of 69108 restricted shares at an award price of 2894 pence per share when  
mr soriot joined astrazeneca he forfeited awards made to him by his previous employer the remuneration committee determined that  
it was appropriate to compensate him for the value of those forfeited awards astrazeneca received an independent assessment of their 
value the restricted shares vested or will vest subject to the company’s closed trading periods as follows
  27 644 vested on 31 october 2013
  20732 will vest on 1 october 2014
  20732 will vest on 1 october 2015
the interests of mr soriot at 31 december 2013 in ordinary shares that are the subject of awards under this arrangement are  
shown below
number of 
shares
award price
pence
price on 
vesting 
date 
pence grant date
1
vesting date
1
pascal soriot
2012 award 69108 2894 261012 variable
total at 1 january 2013 69108
partial vesting of 2012 award 27644
2
3330
total at 31 december 2013 41464
1
 uk date convention applies
2
 following certain mandatory tax deductions mr soriot became beneficially interested in a net number of 23981 ordinary shares
restricted share plan
on 1 august 2013 mr dunoyer was granted an award of 65505 restricted shares at an award price of 3302 pence per share when  
mr dunoyer joined astrazeneca as evp  gpps he forfeited awards made to him by his previous employer the remuneration committee 
determined that it was appropriate to compensate him for the value of those forfeited awards astrazeneca received an independent 
assessment of their value the restricted shares will vest as follows
  9103 shares will vest on 15 june 2014
  41472 shares will vest on 15 june 2015
  14930 shares will vest on 1 august 2016
the interests of mr dunoyer at 31 december 2013 in ordinary shares that are the subject of awards under this arrangement are  
shown below
number of 
shares
award price
pence grant date
1
vesting date
1
marc dunoyer
total at 1 january 2013 –
2013 award 65505 3302 010813 variable
total at 31 december 2013 65505
1
 uk date convention applies 114 astrazeneca annual report and form 20f information 2013
corporate governance  directors’ remuneration report
remuneration policy report
this section sets out the remuneration policy the policy that will be put forward for approval by shareholders at the company’s 
agm in april 2014 it is intended that the policy shall apply from 1 january 2015 for a period of three years and that remuneration 
paid in the period between the date of the agm and the effective date of the policy will be substantially in line with the policy 
setting the company’s policy
the remuneration committee is responsible for setting overall remuneration policy and makes decisions about specific remuneration 
arrangements in the broader context of employee remuneration throughout the group all roles within the organisation are 
benchmarked against comparable roles in similar organisations and in the employee’s local market to ensure the company is paying 
fairly at all levels executive directors’ remuneration arrangements are benchmarked against a global pharmaceutical peer group and 
the ftse30 each year the company actively engages with its employees either on a groupwide basis or in the context of smaller 
focus groups in order to solicit feedback generally and on a wide range of specified issues including pay 
while the remuneration committee did not consult with employees when determining the executive directors’ remuneration policy  
it does annually review group remuneration data including ratios of average pay to senior executive pay bonus data gender and 
geographical data in relation to base salaries and variable compensation and aggregate data about the shareholding levels of senior 
managers many employees are also shareholders in the company and therefore will have the opportunity to vote at the 2014 agm 
on this remuneration policy report in reviewing the base salaries of executive directors the remuneration committee considers 
the overall level of any salary increases being awarded to employees in the executive director’s local market in the relevant year 
in all aspects of its work the remuneration committee considers both the external environment in which the company operates and 
the guidance issued by organisations representing institutional shareholders it consults the company’s largest investors on general 
and specific remuneration matters and provides an annual opportunity for representatives of those investors to meet the chairman of 
the remuneration committee and other remuneration committee and board members major shareholders were consulted on the 
changes made to the lti performance measures in 2013 and it is the company’s policy to seek input from major shareholders on an 
ad hoc basis where significant changes to remuneration arrangements are proposed members of the remuneration committee met 
with major shareholders in december 2013 to discuss the more significant components of the policy as set out in this remuneration 
policy report the company’s shareholders are encouraged to attend the company’s agm and any views expressed will be 
considered by the remuneration committee’s members the remuneration committee works with the audit committee to ensure 
that the group’s remuneration policies and practices achieve the right balance between appropriate incentives to reward good 
performance managing risk and the pursuit of the company’s business objectives 
legacy arrangements
the remuneration committee may approve remuneration payments and payments for loss of office where the terms of the  
payment were agreed before the policy came into effect or at a time when the relevant individual was not a director of the company 
provided that in the opinion of the remuneration committee the agreement was not in consideration for the individual becoming  
a director of the company this includes the exercise of any discretion available to the remuneration committee in connection with 
such payments
for these purposes payments include the remuneration committee satisfying awards of variable remuneration including awards 
over shares on the basis of the terms agreed at the time the award is granted
minor amendments
the remuneration committee may make minor amendments to the arrangements for the directors as described in this 
remuneration policy report for regulatory exchange control tax or administrative purposes or to take account of a change  
in legislation additional information financial statements corporate governance strategic report
115 astrazeneca annual report and form 20f information 2013
remuneration policy for executive directors 
fixed elements of remuneration base salary benefits and pension
the company’s approach to determining and reviewing the salaries of the executive directors and the employee population as a 
whole is the same on an annual basis the salaries for individual roles are reviewed in the context of individual sustained performance 
and the external market astrazeneca participates in annual global compensation surveys which provide benchmarking data for all 
roles within the organisation ensuring a robust salary review process for all employees
the company seeks to provide an appropriate range of competitive benefits including pension to all employees including directors 
in the context of their local market
base salary
purpose and link to strategy operation maximum opportunity
base salary is intended to 
be sufficient but no more 
than necessary to attract 
retain and develop 
highcalibre individuals  
in order to deliver the 
company’s strategy
the remuneration committee determines base salary based on  
a number of factors including but not limited to
  recognition of the value of an individual’s sustained personal 
performance and contribution to the business
  the individual’s skills and experience 
  internal relativities
  conditions in the relevant external market
base salaries are normally reviewed annually to ensure they remain 
competitive with any change usually taking effect from 1 january 
there are no contractual provisions for clawback or malus of  
base salary
the current base salaries can be found on page 105 of the 
implementation report 
while there is no formal maximum annual base salary increases  
if any for the executive directors will normally be in line with the 
percentage increases awarded to the employee population within  
the individual’s country location 
higher increases may be made if the remuneration committee in its 
discretion considers it appropriate for example this may include
  increase in the scope andor responsibility of the individual’s role
  development of the individual within the role
benefits
purpose and link to strategy operation maximum opportunity
to provide market 
competitive benefits
noncash benefits are 
designed to be sufficient 
but no more generous 
than necessary to attract 
retain and develop 
highcalibre individuals 
in order to deliver the 
company’s strategy
ukbased executive directors are provided with a fund under the uk 
flexible benefits programme the fund value is based on a range of 
benefits including
  private medical insurance for partner and children
  life assurance
  permanent health insurance
  company car
  additional holidays
  other additional benefits made available by the company from time 
to time that the remuneration committee considers appropriate 
based on the executive director’s circumstances
a director may choose to take a proportion of or the entire fund  
as cash
nonuk based executive directors will receive a range of benefits  
or a fund of equivalent value comparable to those typically offered  
in their local market they can elect to take the fund as cash or  
elect one or more of these benefits and take the balance as cash
at its discretion for executive directors on an international 
assignment or relocating to take up other company duties the 
remuneration committee may consider support towards the 
reasonable costs of relocation 
at its discretion the remuneration committee may provide an 
allowance towards the reasonable fees for professional services such 
as legal tax property and financial advice the company may also 
fund the cost of a driver and car for executive directors
the company also provides directors’ and officers’ liability 
insurance and an indemnity to the fullest extent permitted by the law 
and the company’s articles 
there are no contractual provisions for clawback or malus of benefits
the current value of benefits available can be found on page 10  
of the implementation report 
the maximum value of the fund available under the uk flexible 
benefits programme will be equivalent to the cost to the company  
of the suite of benefits at the time 
the maximum value of the suite of benefits for nonuk based 
executive directors will be equivalent to the cost of the suite of 
benefits at the time 
the value of the support towards the costs of relocation will be the 
reasonable costs associated with the executive director’s particular 
circumstances
the value of the support towards the costs of professional fees and 
other costs will be the reasonable costs associated with the executive 
director’s particular circumstances
the maximum value of the directors’ and officers’ liability insurance 
and third party indemnity insurance is the cost at the relevant time 
while the remuneration committee has not set an overall level of 
benefit provision the remuneration committee keeps the benefit 
policy and benefit levels under review 
pension
purpose and link to strategy operation maximum opportunity
provision of retirement 
benefits to attract retain 
and develop highcalibre 
individuals in order to 
deliver the company’s 
strategy
company allocations for executive directors’ pensions will be a 
proportion of the individual’s base salary and is in line with local 
market practice
as part of the uk flexible benefits programme the company 
provides an allocation consisting of a percentage of the ukbased 
executive director’s base salary which the executive director can 
elect to pay into a pension scheme or take as cash the company  
will allocate an amount benchmarked to the local market 
there are no contractual provisions for clawback or malus of pension
currently the ceo and cfo receive an allocation equivalent to 30 
and 24 of their base salaries respectively as a contribution towards 
the cost of their pension provisions 
the maximum annual allocation that may be provided to ukbased 
executive directors is 35 of base salary
nonukbased executive directors will receive a fund for the purpose 
of providing retirement benefits in line with the local market practice 
the maximum value of that fund will be a sum equivalent to local 
market practice the executive director may elect to take some or all 
of the fund as cash 116 astrazeneca annual report and form 20f information 2013
corporate governance  directors’ remuneration report
variable elements of remuneration 
annual bonus
all employee bonuses are determined by reference to the group scorecard and an assessment of individual performance the group 
scorecard is designed to reflect the company’s strategy and the focus of its business activity and priorities in the performance year 
the performance measures are recommended by the ceo and determined by the remuneration committee at the beginning of 
each year they are designed to ensure that all eligible employees receive an element of reward based on the group’s overall financial 
and nonfinancial performance a scorecard approach ensures that all employees across functions and geographies are focused on 
the activities critical to delivering the business strategy the performance measures and weightings underlying the annual bonus plan 
will be disclosed in advance the outcomes against targets for reasons of commercial sensitivity will be disclosed in arrears the 
implementation report will identify in arrears the performance versus the objectives and the consequent levels of remuneration 
deemed appropriate by the remuneration committee 
for executive directors onethird of their pretax annual bonus is delivered in shares which are deferred for three years under the 
deferred bonus plan employees below set level receive a bonus in cash and are not required to defer a proportion in shares 
annual bonus cash
purpose and link to strategy operation and framework used to assess performance maximum opportunity
the annual cash bonus 
rewards shortterm 
performance against 
specific annual group  
and individual objectives
these objectives are 
designed to facilitate the 
delivery of the company’s 
shortterm strategy  
and thereby create value 
for our shareholders  
over time
the annual cash bonus is based on group and individual performance in the relevant performance year
scorecard measures and targets are set annually by the remuneration committee based on the key strategic 
objectives for the year payout levels are determined by the remuneration committee after the year end  
based on performance against targets the performance period is one year
the performance measures form a group scorecard which is closely aligned to business strategy and  
rewards scientific commercial and financial success while we expect the performance measures to be  
largely unchanged each year the remuneration committee believes it is inadvisable to commit to a fixed  
set of measures in advance in order to retain flexibility to align incentives with the focus of corporate strategy  
in the relevant year 
the greatest weighting is typically placed on the achievement of financial targets with an equal weighting 
between the scientific and commercial growth metrics reflecting the importance of both sales and rd 
success the actual annual weighting will depend on the strategic priorities for the performance year 
the group scorecard is made up of a number of separate metrics within each performance measure each 
metric has a payout range associated with it including a target which is intended to be stretching in relation  
to each metric a threshold level of performance is specified if performance falls below this level there will  
be no payout for that proportion of the award each metric has a different weighting if none of the metrics 
attributable to a performance measure is met then a bonus payout will not be made in respect of that 
performance measure if none of the metrics is met in any of the performance measures then no bonus  
payout will be made
the board will consider company performance against the group scorecard objectives as well as the 
executive director’s individual performance in order to determine the value of the bonus award individual 
performance will be assessed by the remuneration committee on the basis of objective criteria established  
by the chairman in the case of the ceo and by the ceo in the case of the cfo the remuneration committee 
has the discretion to move the theoretical award up or down subject to the annual bonus award being no 
greater than the maximum percentage of base salary applicable to that award in the year in question
the remuneration committee will use its discretion to ensure that a fair and balanced outcome is achieved 
taking into account the overall performance of the company and the experience of its shareholders
twothirds of the annual bonus is delivered in cash and onethird is delivered in shares which are deferred  
for three years as explained below 
the annual bonus including the deferred share element payable for target performance for the ceo is 
currently 100 of base salary and for the cfo is currently 90 of base salary 
for bonuses awarded in respect of 2015 and subsequent years the remuneration committee will have 
discretion for up to six years from the payment date to claw back from individuals some or all of the  
cash bonus award in certain circumstances including i material restatement of the results of the group  
ii significant reputational damage to the group or iii serious misconduct by the individual however  
in the case of i and ii the remuneration committee may only exercise its discretion for up to two years  
from the payment date 
the maximum annual 
amount payable to an 
executive director is 
250 of base salary 
if the remuneration 
committee ever  
felt that it would be  
in the interests of 
shareholders to grant 
an annual bonus of an 
amount exceeding the 
historical maximum 
opportunity of 180  
of base salary in the 
case of the ceo and 
150 of base salary  
in the case of the  
cfo it would consult  
major shareholders  
in advance
annual bonus deferred bonus plan
purpose and link to strategy operation and framework used to assess performance maximum opportunity
the deferred share 
element of the annual cash 
bonus under the deferred 
bonus plan is designed to 
align executive directors’ 
interests with those of 
shareholders 
executive directors are required to defer onethird of their pretax annual cash bonus into shares 
on vesting the cash value equivalent to dividends that would have been paid during the threeyear holding  
period will be paid subject to continued employment
directors must normally remain in employment for three years from grant for deferred shares to vest
once performance measures have been applied to determine the value of the total bonus no further 
performance measures apply to the deferred share element
for deferred share elements relating to bonuses awarded in respect of 2015 and subsequent years the 
remuneration committee has discretion 
  to reduce or cancel any portion of an unvested deferred bonus award in certain circumstances malus 
including i material restatement of the results of the group ii significant reputational damage to the group  
or iii serious misconduct by the individual 
  for up to six years from the vesting date to claw back from individuals some or all of the deferred bonus  
award in certain circumstances including i material restatement of the results of the group ii significant 
reputational damage to the group or iii serious misconduct by the individual however in the case of i and  
ii the remuneration committee may only exercise its discretion for up to two years from the vesting date 
the maximum deferred 
bonus for executive 
directors is onethird  
of the maximum pretax 
bonus as detailed in the 
annual bonus cash 
section above additional information financial statements corporate governance strategic report
117 astrazeneca annual report and form 20f information 2013
long term incentives ltis
overview an executive director’s target lti award is considered annually and set at a level which takes account of market analysis 
the remuneration committee has discretion to grant awards above or below target based on individual performance and potential 
the ceo’s current lti target is 250 of base salary on an expected value basis and the cfo’s current lti target is 200 of base 
salary on an expected value basis an illustration of the expected value basis can be found in the remuneration scenarios for 
executive directors section from page 121
the company’s variable longterm arrangements for executive directors currently comprise two lti plans the psp and the azip  
under each of these plans the maximum market value of shares that may be awarded is 500 of a participant’s base salary if the 
remuneration committee ever felt that it would be in the interests of shareholders to grant annual variable awards to an executive 
director with values exceeding the historical range of up to 500 in aggregate under the lti plans it would consult major 
shareholders in advance currently when lti awards are granted to executive directors the split between the two plans is weighted 
in the proportion 75 psp and 25 azip 
when granting lti awards the remuneration committee applies a target as a percentage of base salary on an expected value basis 
for the azip  the expected value on vesting is 100 of the value of the award at grant for the psp  the expected value on vesting is 
50 of the value of the award at grant 
the table overleaf explains the operation minimums and maximums payable under each of these lti plans
performance measures performance measures are recommended by the ceo and determined by the remuneration committee 
the performance measures in respect of the psp are designed to drive longterm performance against the company’s strategic 
objectives in terms of commercial scientific and financial success 
in respect of the azip  dividendbased performance hurdles motivate the generation of returns for shareholders on a sustainable 
basis over an extended period of time and will be set by the remuneration committee at a level it considers appropriate at the  
start of the performance period the combined eightyear performance and holding period is designed to reflect the development 
cycle of a medicine and therefore to align executive reward with successful product development
when setting the performance measures at the start of the performance period the remuneration committee will also determine an 
appropriate payout curve if any for each measure the remuneration committee will assess performance against the performance 
measures to determine the level of payout the remuneration committee may exercise its discretion to increase or decrease the 
payout should it consider it appropriate subject to the maximum percentage of base salary applicable in the year in question the 
intention of the remuneration committee is to exercise judgement appropriately in particular so that the experience of shareholders 
over time is taken into account as a matter of good practice certain major shareholders would be consulted before any material 
change to the performance measures for the psp or azip are implemented
the remuneration committee seeks to ensure that on the one hand reward outcomes are not purely mechanistic but on the other 
that in exercising its discretion that exercise is not seen by employees to be arbitrary or unfair the remuneration committee’s 
objective is to use reward arrangements to drive performance by employees which supports the creation of value for shareholders
cessation of employment and other circumstances the lti plans are governed by plan rules which define how individual 
awards should be treated upon termination of an executive director’s employment see principles of payment for loss of office for 
executive directors section on page 124 provision is also made for the treatment of awards in respect of corporate activity including 
rights issues sale of a business outside the group and a change of control the treatment of awards in these circumstances is also 
subject to remuneration committee discretion in the event of a change of control an award will vest pro rata to the time elapsed 
between the date of grant of the award and the date of the event to the extent that the performance measures have been met up to 
the date of the event subject to the remuneration committee’s discretion to make an alternative determination 
other employees other employees at mid to senior levels globally are eligible for lti awards in the form of psp andor restricted 
stock units the occupants of approximately 700 senior roles in the company are currently eligible for psp awards – these are the 
leaders who have the ability directly to influence the delivery of the company’s strategic goals awards under the azip are currently 
granted to set members only including the executive directors 118 astrazeneca annual report and form 20f information 2013
corporate governance  directors’ remuneration report
astrazeneca performance share plan psp
purpose and link to strategy operation and framework used to assess performance maximum opportunity
the psp is an lti plan 
designed to align the 
variable pay of our 
executive directors directly 
to the delivery of our 
mediumterm business 
strategy 
the psp provides for the grant of awards over ordinary shares or adss
vesting is dependent on the achievement of stretching threeyear performance targets and 
continued employment 
performance measures and targets under the psp are determined by the remuneration 
committee at the start of the relevant threeyear performance period and consist of a range of 
measures designed to incentivise performance in furtherance of the company’s business strategy 
the performance measures currently a combination of four measures tsr cumulative cash flow 
sales of medicines in key therapy areas and territories and innovation metrics are closely aligned 
to business strategy and reward commercial scientific and financial success
currently each of the four measures has an equal weighting when setting the performance 
measures at the start of the performance period the remuneration committee will allocate 
weightings to those measures as it considers appropriate taking into account strategic and 
business priorities
the threeyear performance period commences on 1 january in the year of the award the vesting 
date is the third anniversary of the date on which the award is granted a twoyear holding period 
commencing three years from the date of grant for executive directors will be included in the new 
psp rules which are being put to shareholders for approval at the agm in 2014 and if approved 
will be effective for awards made after the agm these awards will vest at the end of the holding 
period during the holding period no further performance measures will apply as performance has 
already been assessed
all the performance measures have a payout curve the payout curves are structured in different 
ways depending on the overall objective they are intended to measure typically performance 
measures are structured such that 25 of the award will vest for threshold level of performance 
the relationship between threshold target and outperformance will be determined by the 
remuneration committee at each grant of the psp and is dependent on whether the performance 
measure is science commercial or finance based an award will typically vest at 100 if the target 
usually set at upper quartile performance is achieved and threshold level of performance 
associated with any metric will be at or above a median level there will be other vesting points 
between the threshold and maximum of 100 vesting typically on a straightline basis where the 
performance measures permit 
the remuneration committee may acting fairly and reasonably adjust or waive a performance target 
if an event occurs that causes it to believe that the performance target is no longer appropriate
payouts can range from 0 to 100 of the original award
on vesting the cash value equivalent to dividends accrued during the vesting period will be paid
subject to shareholder approval of the renewal of the psp at the 2014 agm for awards granted 
under the psp after the agm and in subsequent years the remuneration committee will have 
discretion 
  to reduce or cancel any portion of an unvested award in certain circumstances malus including 
i material restatement of the results of the group ii significant reputational damage to the 
group or iii serious misconduct by the individual 
  for up to six years from the third anniversary of the date of grant to claw back from individuals 
some or all of the award in certain circumstances including i material restatement of the results 
of the group ii significant reputational damage to the group or iii serious misconduct by the 
individual however in the case of i and ii the remuneration committee may only exercise its 
discretion for up to two years from the third anniversary of the date of grant 
under the psp plan rules the 
maximum market value of shares  
that may be awarded at the date of 
grant in respect of any year is 500 
of a participant’s annual base salary 
if each aspect of all of the 
performance measures is met  
and exceeded the remuneration 
committee currently has the 
discretion to pay out a maximum  
of 125 of the value of the original 
award however the remuneration 
committee has determined that it will 
not exercise this discretion in relation 
to outstanding or future awards 
this feature has therefore been 
removed from the new psp rules 
which are being put to shareholders 
for approval at the agm in 2014 additional information financial statements corporate governance strategic report
119 astrazeneca annual report and form 20f information 2013
astrazeneca investment plan azip
purpose and link to strategy operation and framework used to assess performance maximum opportunity
the combined eightyear 
performance and holding 
periods of the azip are 
influenced by the group’s 
medicine development 
cycle reflecting the long 
term investment horizons 
that are a feature of the 
pharmaceutical industry 
the azip provides for the grant of awards over ordinary shares or adss
vesting is dependent on achievement of two performance measures over a fouryear performance 
period the award is then subject to a further fouryear holding period payout of the award is 
subject to continued employment 
performance measures and targets under the azip are determined by the remuneration 
committee at the start of the relevant fouryear performance period
currently two performance measures apply dividend level and dividend cover both measures 
must be achieved for the award to vest 
if an event occurs which causes the remuneration committee acting fairly and reasonably  
to consider that a performance measure is no longer appropriate it may adjust that measure
the azip is operated over a fouryear performance period with a subsequent fouryear holding 
period performance periods commence on 1 january in the year of the award holding periods 
run for a period of four years starting from the end of the performance period and end on the 
eighth anniversary of the start of the performance period during the holding period no further 
performance measures apply as performance has already been assessed 
if both measures are achieved in each year of the performance period the award will vest in full  
at the end of the holding period if either or both of the measures are not achieved the award  
will lapse
on vesting the cash value equivalent to dividends paid during the performance and holding 
periods will be paid
for awards granted under the azip prior to the agm in 2014 the company may reduce or cancel 
some or all of the shares that are the subject of a participant’s award at any time during the 
performance or the holding period if in the opinion of the remuneration committee acting fairly 
and reasonably this is warranted by the underlying performance of the company the occurrence 
of an event that causes or is very likely to cause reputational damage to the company or serious 
misconduct by the participant
in order to ensure consistency between our lti plans for awards granted under the azip on or 
after the agm and in subsequent years the remuneration committee will have discretion 
  to reduce or cancel any portion of an unvested award in certain circumstances malus including 
i material restatement of the results of the group ii significant reputational damage to the 
group or iii serious misconduct by the individual
  for up to six years from the end of the performance period to claw back from individuals some  
or all of the award in certain circumstances including i in the case of material restatement of the 
results of the group ii significant reputational damage to the group or iii serious misconduct 
by the individual however in the case of i and ii the remuneration committee may only 
exercise its discretion for up to two years from the end of the performance period 
under the azip plan rules the 
maximum market value of shares that 
may be awarded at the date of grant 
in respect of any year is 500 of a 
participant’s annual base salary 120 astrazeneca annual report and form 20f information 2013
corporate governance  directors’ remuneration report
restricted shares
in certain circumstances as part of the recruitment arrangements an executive director may be awarded restricted shares  
there are no performance measures attached to awards of restricted shares because typically they will be awarded for the purpose 
of compensating newly recruited executive directors for loss of entitlements on leaving a previous employment however the 
remuneration committee will consider whether the lost incentives were subject to performance measures and their likely vesting  
if foregone awards were subject to performance testing then the compensatory astrazeneca award will normally be granted under 
the psp andor azip in order to align the performance conditions attaching to the award to the delivery of the company’s strategy 
restricted share awards will generally be used only when the foregone compensation was not subject to performance testing
the remuneration committee may divide an award of restricted shares into tranches vesting at different points and may apply 
performance measures bespoke to the individual if it considers it appropriate if it decides to attach performance conditions the 
performance conditions and period will be defined at grant
in most instances there are no performance conditions attached to these awards they will therefore vest in full if the individual 
remains in office on the vesting date 
on vesting the cash value equivalent to dividends accrued during the vesting period will be paid
there are no contractual provisions for clawback or malus of awards of restricted shares
restricted shares may be used for the same purpose on the recruitment of other employees 
astrazeneca also operates another restricted share plan the astrazeneca global restricted stock plan to provide lti awards  
to eligible employees globally currently executive directors and other senior executives are not eligible to participate in this plan
award of restricted shares
purpose and link to strategy operation and framework used to assess performance maximum opportunity
in certain circumstances  
as part of recruitment 
arrangements an executive 
director may be made 
awards of restricted shares 
this would ordinarily be to 
compensate for loss of 
remuneration opportunities 
suffered on leaving previous 
employment 
see above there is no maximum value of an 
award which may be granted 
the remuneration committee will 
determine the value of the award at 
grant as it considers appropriate in 
all the circumstances
restricted share plan rsp
purpose and link to strategy operation and framework used to assess performance maximum opportunity
the rsp is a lti plan 
designed to align the 
variable pay of our key 
employees excluding 
executive directors 
directly to the delivery of 
our business strategy
the rsp provides for the granting of restricted share awards to key employees excluding 
executive directors
mr dunoyer who was appointed as an executive director subsequent to his appointment as evp 
gpps was granted an award of restricted shares to compensate for loss of entitlements as a 
result of leaving his previous employment 
under the rsp plan rules the 
maximum market value of shares that 
may be awarded at the date of grant 
in respect of any year is 500 of a 
participant’s annual base salary
the remuneration committee will 
determine the value of the award at 
grant as it considers appropriate in 
all the circumstances
in the case of mr dunoyer the 
maximum payable is 100 of the 
shares awarded 65505 shares
uk employee share plans
all ukbased employees including the executive directors are eligible to participate in the saye option scheme and share incentive 
plan which are hm revenue  customs hmrc approved plans
share incentive plan sip
purpose and link to strategy operation and framework used to assess performance maximum opportunity
encouraging share 
ownership
the company operates an hmrcapproved sip whereby uk employees including executive 
directors may save a regular amount over one year with which to purchase partnership shares 
and for which currently a matching share is granted for every four shares purchased
partnership shares up to £125 per 
month from pretax pay or such other 
maximum amount as determined by 
the company within the parameters 
of applicable legislation
saye option scheme saye
purpose and link to strategy operation and framework used to assess performance maximum opportunity
encouraging share 
ownership
the company operates an hmrcapproved save as you earn option scheme whereby uk 
employees including executive directors may save a regular amount over three or five years with 
which to purchase shares currently shares are acquired at a 10 discount to the market price 
prevailing at the date of the commencement of the scheme a maximum discount of 20 may be 
made available under the scheme
up to £250 per month from posttax 
pay or such other maximum amount 
as determined by the company within 
the parameters of applicable 
legislation additional information financial statements corporate governance strategic report
121 astrazeneca annual report and form 20f information 2013
remuneration scenarios for executive directors 
the charts below illustrate how much the current executive directors could receive under different performance scenarios in the first year 
of the policy assuming a constant share price 
in order to compile the charts below the following assumptions have been made
minimum 
remuneration
consists of the fixed elements of remuneration only base salary taxable benefits and pension
  base salary is latest known salary ie that applicable in 2014 as the remuneration committee will not determine 
base salaries for 2015 until the end of 2014 
  taxable benefits is taken from the corresponding figure in the directors’ single total figure remuneration table  
as set out on page 105 with such sum annualised in the case of mr dunoyer 
  pension measured as a cash payment equivalent to 30 of base salary in the case of the ceo and 24 of 
base salary in the case of the cfo
base salary 
£’000
taxable benefits 
£’000
pension 
£’000
total 
£’000
pascal soriot 1133 110 340 1583
marc dunoyer 680 60 163 903
remuneration  
for onplan 
performance 
target
based on what the executive director would receive if performance were in line with the company’s expectations
  ontarget annual bonus payout of 100 of base salary for the ceo and 90 for the cfo
  lti shares which vest at an expected value of 250 of base salary for the ceo 200 in the case of the cfo 
remuneration for 
outperformance 
above target
maximum
based on what the executive director would receive at stretch performance and maximum vesting of the 
performance shares
  an annual bonus payout of 180 of base salary for the ceo and 150 for the cfo
  maximum vesting of the awards made under the company’s lti plans representing 100 of the face value of the 
psp and azip awards where the psp has an expected value of 50 and the azip an expected value of 100
0 £’000 £’000 1000 2000 3000 4000 5000 6000 7000 8000 9000
out performance
on plan
minimum
fixed base pay pension and beneﬁts annual variable long term incentives
0 1000 2000 3000 4000 5000
out performance
on plan
minimum
£16m
£55m
£86m
100
29 20 51
18 24 58
£09m
£29m
£43m
100
32 21 47
21 24 55
marc dunoyer pascal soriot
the charts above also include the lti awards that could be granted in 2015 when granting lti awards the remuneration committee 
applies a target as a percentage of base salary on an expected value basis for the azip  the expected value on vesting is 100 of the 
value of the award at grant and for the psp  the expected value on vesting is 50 of the award at grant
when granting lti awards for the ceo we apply a target expected value of 250 of base salary weighted 25 in favour of the azip  
ie 625 of base salary which provides for an award at face value of 625 of base salary and 75 in favour of the psp ie 187 5  
of base salary which provides for an award at face value of 375 of base salary 
accordingly the combination of the azip and psp awards for the ceo at an expected value of 250 provides a maximum number  
of shares under the awards with a face value of 437 5 of base salary
when granting lti awards for the cfo we apply a target expected value of 200 of base salary weighted 25 in favour of the azip  
ie 50 of base salary which provides for an award at face value of 50 of base salary and 75 in favour of the psp ie 150 of base 
salary which provides for an award at face value of 300 of base salary 
accordingly the combination of the azip and psp awards for the cfo at an expected value of 200 provides a maximum number  
of shares under the awards with a face value of 350 of base salary 122 astrazeneca annual report and form 20f information 2013
corporate governance  directors’ remuneration report
approach to recruitment remuneration for executive directors
the company seeks to pay no more than necessary to recruit the best candidate available for a role as an executive director on the 
recruitment of a new executive director the company seeks to put in place a remuneration package which is broadly in line with the 
remuneration package applicable to relevant incumbent executive directors however in order to offer a competitive package to the most 
capable candidate the company may consider providing remuneration arrangements that exceed those of existing executive directors 
the remuneration committee may also agree to pay allowances to expatriates in line with the company’s international assignment policy 
which provides for support towards housing schooling and other relocation or assignment related costs 
the remuneration package offered to new recruits may include any element listed in the policy table above or any other element which 
the remuneration committee considers is appropriate given the particular circumstances with due respect to the interests of the 
company’s shareholders 
in considering which elements to include and in determining the approach for all relevant elements the remuneration committee will 
take into account a number of different factors including typical market practice existing arrangements for the other executive directors 
and internal relativities and market positioning 
the company may reimburse the costs of financial planning and tax advice to executive directors the company also provides  
directors’ and officers’ liability insurance and an indemnity to the fullest extent permitted by the law and the company’s articles to  
all executive directors
the company may find it necessary to compensate a new recruit for forfeiture of entitlements from a previous employer the value of 
such compensation cannot be anticipated and will depend upon a range of factors including the circumstances of the individual in 
question in such circumstances the company will seek to offer a package weighted towards equity in the company however the 
precise nature of the compensation package will depend on the type of entitlement that the recruit is foregoing and which the company 
will generally seek to compensate in kind the buyout might therefore comprise cash andor restricted shares andor lti the remuneration 
committee will obtain and take into account independent valuations of the entitlements to determine the appropriate level of 
compensation
shares which could be offered to the new recruit would be granted under lti plans available at the time or under a plan specific to that 
individual as permitted under the financial conduct authority’s listing rules performance measures may apply to such share awards 
the company’s policy seeks to link the performance of the executive director to the performance of the company in any given period 
the precise targets and measures will depend on the objectives of the company and the individual at that time and will be determined by 
the remuneration committee 
the company will not offer cash or shares to newly recruited executive directors as a bonus or ‘golden hello’ on joining other than to 
compensate for the loss of a previous remuneration opportunity where compensation is offered to a new recruit on his or her hire the 
company will explain the reasons for this to shareholders in a timely manner and will provide details of the payments 
ongoing annual variable remuneration will not exceed an award which comprises up to 250 of base salary under the annual bonus and 
up to 500 of base salary under the psp and up to 500 of base salary under the azip  if the remuneration committee ever felt that it 
would be in the interests of shareholders to grant annual variable awards to a new executive director with values exceeding the historical 
range of 0 – 680 of base salary comprising up to 180 under the annual bonus and up to 500 in aggregate under the lti plans  
it would consult major shareholders in advance
the company intends to honour all remuneration arrangements previously entered into in the case of group employees who are 
promoted to the position of an executive director  additional information financial statements corporate governance strategic report
123 astrazeneca annual report and form 20f information 2013
service contracts for executive directors
save as noted below it is not intended that service contracts for new executive directors will contain terms that are materially different 
from those summarised below or contained in the policy set out in this remuneration policy report the contractual obligations below  
are applicable to each of the current executive directors unless stated otherwise and to the executive directors only
notice period the company may terminate the employment of an executive director by giving not less than 12 months’ written 
notice the company may agree on the appointment of a new executive director that any notice given by the 
company will not expire prior to the second anniversary of the commencement date of the executive director’s 
appointment the company agreed to such a provision in the case of mr dunoyer 
an executive director may terminate his employment on 12 months’ written notice
payment in  
lieu of notice
the company may terminate an executive director’s contract at any time with immediate effect and pay him a sum 
in lieu of notice this sum will consist of i the base salary that the relevant executive director would have been 
entitled to receive during the notice period and ii the cost to the company of funding the executive director’s 
flexible benefit arrangements for this period including the company’s contribution in respect of pension 
the payment in lieu of notice may be paid as a lump sum or the company may decide to pay the first six months of the 
payment in lieu in equal monthly instalments with the balance paid within 30 days of the final instalment being paid 
garden leave if an executive director has given or been given notice of termination the company has the right to place the 
executive director on ‘garden leave’ 
summary 
termination
the company may terminate an executive director’s employment summarily in particular defined circumstances 
such as gross misconduct with no further payment
payments in  
lieu of holiday
if on termination the relevant executive director has exceeded his accrued holiday entitlement the value of this 
excess may be deducted by the company from any sums payable if the executive director has unused holiday 
entitlement the remuneration committee has discretion to require the executive director to take such unused 
holiday during any notice period or make a payment in lieu of it calculated in the same way as the value of any 
excess holiday
directors’ and 
officers’ liability 
insurance
directors’ and officers’ liability insurance and an indemnity to the fullest extent permitted by the law and the 
company’s articles is provided to the executive directors for the duration of their employment and for a minimum  
of five years following termination
deemed  
treatment  
under azip  
and restricted 
share award
in respect of awards made to compensate mr soriot for loss of remuneration opportunity at his previous employer  
if mr soriot gives notice of termination of his employment after the end of the performance period under the azip 
but before the end of the holding period the award under the azip will vest on the earlier of the end of the holding 
period and the end of the period of 24 months from the date of cessation of employment unless the remuneration 
committee determines otherwise if mr soriot’s employment is terminated by the company other than in the event 
of prescribed misconduct events his restricted share award will continue to subsist 124 astrazeneca annual report and form 20f information 2013
corporate governance  directors’ remuneration report
principles of payment for loss of office for executive directors
the company does not make additional payments for loss of office other than as appropriate payments in lieu of notice as described 
above or payments in respect of damages if the company terminates an executive director’s service contract in breach of contract  
taking into account as appropriate the director’s ability to mitigate his loss the remuneration committee has discretion to award 
payments in certain circumstances as set out below depending on the nature of the termination and the executive director’s 
performance the lti plans are governed by plan rules which define how individual awards under those plans should be treated upon 
termination of employment provision is also made for the treatment of awards in respect of corporate activity including sale of a business 
outside the group the treatment of awards in these circumstances may also be subject to remuneration committee discretion 
generally awards under lti plans will only be allowed to vest for those executive directors who leave the company by mutual agreement 
for example in circumstances of illhealth injury disability redundancy or retirement or where employment terminates by reason  
of the executive director’s death see the table opposite for further information in addition to any payment in lieu of notice the individual 
components of remuneration and other payments which may be payable on loss of office are set out below subject to the terms of any 
applicable bonus rules or share incentive plan rules
  annual bonus 
an executive director may receive a bonus for the performance year in which he leaves the company typically this sum will reflect  
an ontarget bonus prorated for the part of the year in which he worked this is at the discretion of the remuneration committee and 
will depend on the circumstances including an assessment of the executive director’s performance in the relevant period and the 
circumstances of his departure the deferred share element of previous bonuses granted and any deferred share element of the bonus 
awarded in respect of the departing year may still vest for the benefit of the departing executive director at the end of the period of 
deferral despite the fact that the executive director did not work for the entirety of this period the remuneration committee has  
the discretion to accelerate andor retain the deferral period and allow shares to vest for the benefit of the executive director on his 
departure andor in accordance with the vesting schedule as the case may be the remuneration committee will decide whether  
it is appropriate in the circumstances for these shares to vest for the benefit of the departing executive director 
  lti plans  
the rules of the lti plans envisage circumstances under which some all or none of an executive director’s shares held under lti plans 
will vest in connection with his departure the exact timing and number of shares vesting will depend on the circumstances including 
the executive director’s reason for leaving as set out in the table opposite and may be subject to remuneration committee discretion 
depending on what it considers to be fair and reasonable in the circumstances 
  restricted share awards and awards under the rsp 
the treatment on termination will depend upon the terms of the individual executive director’s awards on recruitment the remuneration 
committee has discretion to determine the treatment at the time of departure based on what it considers to be fair and reasonable in 
the circumstances
  nonstatutory redundancy payment 
executive directors are not entitled to nonstatutory redundancy payments
  pension contributions and other benefits 
pension contributions and other benefits for executive directors will be payable up to the termination date or as part of a payment in lieu 
of notice as described on page 123
  payments in relation to statutory rights 
the amount considered reasonable to pay by the remuneration committee in respect of statutory rights may be included in the overall 
termination payment
  payments required by law 
the company may pay damages awards fines or other compensation awarded to or in respect of an executive director by any 
competent court or tribunal or other payments required to be made on termination of employment by any applicable law regulator  
or collective labour agreement
  m i tig ati o n 
the departing executive director will be required to mitigate his loss by using reasonable efforts to secure new employment 
  professional fees 
the company may pay an amount considered reasonable by the remuneration committee in respect of fees for legal and tax advice 
and outplacement support for the departing executive director additional information financial statements corporate governance strategic report
125 astrazeneca annual report and form 20f information 2013
treatment of lti and deferred bonus plan awards on cessation of employment
plan
termination by mutual agreement broadly in circumstances of illhealth injury disability  
redundancy or retirement and in the case of death and certain corporate events eg sale of  
a business outside the group other leaver scenarios
deferred bonus 
plan annual 
bonus plan
awards will vest at the end of the relevant deferral period unless the remuneration 
committee decides otherwise
ordinarily awards will lapse unless the 
remuneration committee exercises its discretion 
to apply the treatment for leavers by mutual 
agreement
psp
where cessation of employment occurs within three years of the date of grant  
awards will vest pro rata to the time elapsed between the date of grant of the award 
and the date of cessation of employment at the end of the performance period after 
performance has been assessed to the extent that the performance targets measured 
over the performance period has been met 
where cessation of employment occurs during any holding period the award will vest in 
respect of all the shares that continue to be subject to the award as soon as practicable 
following the cessation of employment
however the remuneration committee has discretion to permit the award to vest 
immediately on cessation of employment where that cessation occurred as a result of 
one of the events mentioned above to the extent that the performance targets has  
in the opinion of the remuneration committee been satisfied from the date of grant  
to the date of cessation of employment 
however if the remuneration committee believes that exceptional circumstances 
warrant this it may exercise its discretion to vest the award on another basis
ordinarily awards will lapse unless the 
remuneration committee exercises its 
discretion to preserve all or part of an award 
and apply the default treatment for leavers by 
mutual agreement as described in this table
this discretion will not be exercised in the case 
of dismissal for gross misconduct 
azip
death illhealth injury or disability
  in the performance period the award will vest as soon as practicable following the 
cessation of employment prorated to take into account the period elapsed between 
the date of grant and the date of cessation of employment relative to the performance 
period and prorated to take into account the satisfaction of any performance 
measures as agreed by the remuneration committee 
  in the holding period the award will vest in respect of all the shares that continue  
to be subject to the award as soon as practicable following the cessation of 
employment
redundancy retirement or certain corporate events eg sale of a business outside  
the group
  in the performance period the award will vest at the later of the end of the 
performance period and the end of the period of 24 months from the date of 
cessation of employment to the extent any performance measures have been met  
by the end of the performance period and prorated to take into account the period 
elapsed between the date of grant and the date of cessation of employment relative 
to the performance period 
  in the holding period the award will vest in respect of all shares that continue to  
be subject to the award at the earlier of the end of the holding period and the end  
of the period of 24 months from the date of cessation of employment where the 
remuneration committee terminates an executive director’s employment other  
than for gross misconduct during the holding period the awards will vest on the 
same basis
in each case described above the remuneration committee has discretion to vest  
the award or part of the award on a different basis
ordinarily awards will lapse unless the 
remuneration committee exercises its 
discretion to apply the default treatment for 
leavers by reason of redundancy or retirement 
described in this table 
restricted 
shares and 
awards under  
the rsp
awards will lapse unless the remuneration committee exercises its discretion to 
preserve all or part of an award
in relation to awards granted on or after 3 february 2014 and where that award  
was granted at the time of the executive director’s recruitment to the company in 
compensation for any awards or bonuses forfeited at his previous employer the award 
will vest on the date his employment ceases prorated to take into account the period 
elapsed between the date of grant and the date of cessation of employment unless the 
remuneration committee decides not to prorate or to prorate on some other basis
ordinarily awards will lapse unless the 
remuneration committee exercises its 
discretion to preserve all or part of an award 126 astrazeneca annual report and form 20f information 2013
corporate governance  directors’ remuneration report
future remuneration policy for nonexecutive directors 
nonexecutive directors including the chairman receive annual board fees additional fees are also payable for membership and 
chairmanship of a board committee nonexecutive directors are not eligible for performancerelated bonuses or the grant of share 
awards or options no pension contributions are made on their behalf the annual board fees applicable to nonexecutive directors 
during 2013 are set out below fees applicable in future years will be set out in the corresponding year’s implementation report 
the remuneration of nonexecutive directors is determined by the chairman and the executive directors the remuneration of the 
chairman is determined by the other members of the remuneration committee and the senior independent nonexecutive director  
no director is involved in any decision relating to his or her own remuneration
annual board and committee fees
purpose and link to strategy operation maximum opportunity
the annual fees are 
intended to be sufficient 
but no more than 
necessary to attract 
retain and develop 
highcalibre individuals
nonexecutive directors including the chairman receive annual board fees and additional fees 
for membership and chairmanship of a board committee 
the individual fees paid to a nonexecutive director are subject to periodic review and may be 
increased in the future to ensure that they remain sufficient to attract highcalibre individuals while 
remaining fair and proportionate while nonexecutive directors currently receive their fees in 
cash the company reserves the right to award part or all of their fees in shares
there are no contractual provisions for clawback or malus of fees
nonexecutive director fees in 2013 
£
chairman’s fee 500000
basic nonexecutive director’s fee 75000
senior independent nonexecutive director 30000
membership of the audit committee 20000
membership of the remuneration committee 15000
chairman of the audit committee or the remuneration committee
1
20000
membership of the science committee 10000
chairman of the science committee
1
7000
1
 this fee is in addition to the fee for membership of the relevant committee
the maximum fees payable in 
aggregate to the nonexecutive 
directors may not exceed  
£2250000 per year under the 
company’s articles as approved  
by the company’s shareholders
benefits
purpose and link to strategy operation maximum opportunity
intended to attract and 
retain highcalibre 
individuals
the company also provides directors’ and officers’ liability insurance and an indemnity to the 
fullest extent permitted by the law and the company’s articles and may also reimburse the costs 
of financial planning and tax advice
the maximum amount payable in 
respect of these costs and cost of 
insurance will be the reimbursement 
of the directors’ benefits grossed up 
for any tax payable by the individual 
other costs and expenses
purpose and link to strategy operation maximum opportunity
intended to reimburse 
individuals for legitimately 
incurred costs and 
expenses
in addition to the chairman’s fee a proportion of the office costs of the chairman are reimbursed 
in 2013 this amounted to £40000 the amount of office costs to be reimbursed each year will be 
determined at the discretion of the remuneration committee based on an assessment of the 
reasonable requirements of the chairman the remuneration committee has the discretion to 
approve contributions by the company to office costs of other nonexecutive directors in 
circumstances where such payments are deemed proportionate and reasonable
the company will pay for all travel including travel to the company’s offices hotel and other 
expenses reasonably incurred by nonexecutive directors in the course of the company’s 
business for example professional fees such as secretarial support and reimbursement for 
domestic security arrangements such as lights and alarms following a security assessment
there are no contractual provisions for clawback or malus of other costs and expenses
the maximum amounts payable in 
respect of these costs and expenses 
will be the reimbursement of the 
directors’ costs and expenses 
grossed up for any tax payable by  
the individual
letters of appointment
none of the nonexecutive directors has a service contract but all have letters of appointment in accordance with the articles following 
their appointment all directors must retire at each agm and may present themselves for election or reelection the company is mindful 
of the independence provisions of the uk corporate governance code and in this regard it is anticipated that nonexecutive directors’ 
overall tenure will not normally exceed nine years the chairman may terminate his appointment at any time with three months’ notice 
none of the nonexecutive directors has a notice period or any provision in his or her letter of appointment giving him or her a right to 
compensation payable upon early termination of appointment
on behalf of the board
a c n kemp 
company secretary 
6 february 2014 financial statements 2013
astrazeneca annual report and form 20f information 2013 127
  for the parent company financial 
statements state whether applicable uk 
accounting standards have been followed 
subject to any material departures 
disclosed and explained in the parent 
company financial statements
  prepare the financial statements on 
the going concern basis unless it is 
inappropriate to presume that the 
group and the parent company will 
continue in business
the directors are responsible for keeping 
adequate accounting records that are 
sufficient to show and explain the parent 
company’s transactions and disclose 
with reasonable accuracy at any time the 
financial position of the parent company 
and enable them to ensure that its financial 
statements comply with the companies 
act 2006 they have general responsibility 
for taking such steps as are reasonably 
open to them to safeguard the assets of 
the group and to prevent and detect fraud 
and other irregularities
under applicable law and regulations 
the directors are also responsible for 
preparing a directors’ report strategic 
report directors’ remuneration report 
corporate governance report and audit 
committee report that complies with that 
law and those regulations
the directors are responsible for preparing 
this annual report and form 20f information 
and the group and parent company 
financial statements in accordance with 
applicable law and regulations
company law requires the directors to 
prepare group and parent company 
financial statements for each financial 
year under that law they are required to 
prepare the group financial statements 
in accordance with ifrss as adopted 
by the eu and applicable law and have 
elected to prepare the parent company 
financial statements in accordance with 
uk accounting standards and applicable 
law uk gaap
under company law the directors must not 
approve the financial statements unless 
they are satisfied that they give a true and 
fair view of the state of affairs of the group 
and parent company and of their profit or 
loss for that period in preparing each of 
the group and parent company financial 
statements the directors are required to
  select suitable accounting policies 
and then apply them consistently
  make judgements and estimates 
that are reasonable and prudent
  for the group financial statements 
state whether they have been prepared 
in accordance with ifrss as adopted 
by the eu
preparation of the financial statements  
and directors’ responsibilities
the directors are responsible for the 
maintenance and integrity of the corporate 
and financial information included on our 
website legislation in the uk governing the 
preparation and dissemination of financial 
statements may differ from legislation 
in other jurisdictions
directors’ responsibility statement 
pursuant to dtr 4
the directors confirm that to the best of 
our knowledge
  the financial statements prepared in 
accordance with the applicable set of 
accounting standards give a true and 
fair view of the assets liabilities financial 
position and profit or loss of the company 
and the undertakings included in the 
consolidation taken as a whole
  the directors’ report includes a fair review 
of the development and performance 
of the business and the position of the 
issuer and the undertakings included 
in the consolidation taken as a whole 
together with a description of the principal 
risks and uncertainties that they face
on behalf of the board of directors on 
6 february 2014
pascal soriot 
director
projections of any evaluation of effectiveness 
to future periods are subject to the risks 
that controls may become inadequate 
because of changes in conditions or that 
the degree of compliance with the policies 
or procedures may deteriorate
the directors assessed the effectiveness of 
astrazeneca’s internal control over financial 
reporting as at 31 december 2013 based 
on the criteria set forth by the committee of 
sponsoring organizations of the treadway 
commission in internal controlintegrated 
framework 1992 based on this assessment 
the directors believe that as at 31 december 
2013 the internal control over financial 
reporting is effective based on those criteria
kpmg audit plc an independent registered 
public accounting firm has audited the 
effectiveness of internal control over 
financial reporting as at 31 december 2013 
and as explained on page 126 has issued 
an unqualified report thereon
the directors are responsible for establishing 
and maintaining adequate internal control 
over financial reporting astrazeneca’s 
internal control over financial reporting is 
designed to provide reasonable assurance 
over the reliability of financial reporting and 
the preparation of consolidated financial 
statements in accordance with generally 
accepted accounting principles
due to its inherent limitations internal 
control over financial reporting may 
not prevent or detect misstatements 
directors’ responsibilities for and report on 
internal control over financial reporting
strategic report corporate governance additional information financial statements financial statements 
astrazeneca annual report and form 20f information 2013 128
opinions and conclusions arising  
from our audit
1 our opinion on the group financial 
statements is unmodified
we have audited the group financial 
statements of astrazeneca plc for the 
year ended 31 december 2013 set out  
on pages 132 to 186 in our opinion the 
group financial statements 
  give a true and fair view of the state of the 
group’s affairs as at 31 december 2013 
and of its profit for the year then ended 
independent auditor’s report to the members of astrazeneca plc only 
  have been properly prepared in 
accordance with international financial 
reporting standards ifrss as adopted 
by the european union eu and
  have been prepared in accordance with 
the requirements of the companies act 
2006 and article 4 of the ias regulation
2 separate opinion in relation to 
ifrss as issued by the international 
accounting standards board iasb
as explained in the group accounting 
policies section of the group financial 
statements set out on pages 136 to 140 
revenue recognition 25711m
refer to page 100 audit committee report page 137 accounting policy page 141 and 147 financial disclosures and page 83 
financial risk management
the risk our response
revenue recognition is one of the key 
judgemental areas for our audit particularly 
in respect of estimates made for rebates 
chargebacks and returns under contractual 
and regulatory requirements in the us which 
are deducted in arriving at revenue
our principal audit procedures included testing the group’s controls surrounding revenue 
recognition and key manual and systemsbased controls in the ordertocash transaction 
cycle including reconciliations between sales systems and the general ledger assessing 
whether appropriate revenue recognition policies are applied through comparison with 
accounting standards and performing testing over revenue at significant components 
which included analysis of product sales year on year corroborating movements compared 
with expectations and inspection of contracts with customers our audit work in respect 
of the accrual for us rebates chargebacks and returns involved testing key controls 
including the group’s review of claims credits and system accrual rates in addition we 
considered the accuracy and integrity of the accrual calculation corroborated inputs and 
key assumptions both to internal and independent sources and considered the historical 
accuracy of the accrual we also assessed the adequacy of the group’s disclosures of 
its revenue recognition policy and other related disclosures
the group in addition to complying with its 
legal obligation to apply ifrss as adopted 
by the eu has also applied ifrss as issued 
by the iasb
in our opinion the group financial 
statements comply with ifrss as issued 
by the iasb
3 our assessment of risks of 
material misstatement
in arriving at our audit opinion above on the 
financial statements the risks of material 
misstatement that had the greatest effect 
on our audit were as follows
kpmg audit plc has also reported separately 
on the company financial statements of 
astrazeneca plc and on the information 
in the directors’ remuneration report 
that is described as having been audited 
this audit report is set out on page 187
the report set out below is provided in 
compliance with international standards on 
auditing uk and ireland kpmg audit plc 
has also issued reports in accordance with 
standards of the public company accounting 
oversight board in the us which will be 
included in the annual report on form 20f 
to be filed with the us securities and 
exchange commission those reports are 
unqualified and include opinions on the 
group financial statements and on 
the effectiveness of internal control over 
financial reporting as at 31 december 2013 
sarbanesoxley act section 404 the 
directors’ statement on internal control over 
financial reporting is set out on page 127
auditor’s reports on the financial statements and on internal control 
over financial reporting sarbanesoxley act section 404 astrazeneca annual report and form 20f information 2013 129
carrying value of intangible assets 16047m
refer to page 100 audit committee report page 140 accounting policy page 150 financial disclosures and page 85 financial  
risk management
the risk our response
the group has significant intangible assets 
arising from the acquisition of products both 
launched and in development recoverability 
of these assets is based on forecasting and 
discounting future cash flows which are 
inherently judgemental for products in 
development the main risk is successful 
trial results and obtaining required regulatory 
approvals for launched products the key 
risk is the ability to successfully commercialise 
the individual product concerned 
in this area our principal audit procedures included evaluating the group’s assumptions 
used in assessing the recoverability of intangible assets in particular revenue and cashflow 
projections useful life and discount rates we also performed sensitivity analysis over 
individual intangible asset models where there was a higher risk of impairment for products 
in development a key assumption is the probability of obtaining the necessary clinical and 
regulatory approvals our procedures around such products in development included 
critically assessing the reasonableness of the group’s assumptions through consideration 
of trial readouts regulatory announcements and the group’s internal governance and 
approval process we also interviewed a range of key research and development personnel 
and compared assumptions with industry practice for launched products we challenged 
key assumptions including the size of the therapeutic area market the products’ projected 
share and expected pricing and associated costs our procedures also included holding 
discussions with relevant management personnel sensitivity analysis based on our experience 
in the sector and retrospective assessment of the accuracy of the group’s projections
we also assessed the adequacy of the group’s disclosures in respect of the carrying value 
of intangible assets
litigation and contingent liabilities provisions of 59m
refer to page 101 audit committee report page 139 accounting policy page 176 financial disclosures and page 86 financial  
risk management
the risk our response
in the normal course of business contingent 
liabilities may arise from productspecific and 
general legal proceedings from guarantees 
government investigations or from 
environmental liabilities connected with the 
group’s current or former sites the amounts 
involved are potentially material and the 
application of accounting standards to 
determine the amount if any to be provided 
as a liability is inherently subjective 
having made enquires of the directors to obtain their view on the status of significant legal 
matters our principal audit procedures included assessment of correspondence with the 
group’s external counsel on all significant legal cases and discussions with external counsel 
where necessary in addition we obtained formal confirmations from the group’s external 
counsel for all significant litigation used our own forensic and compliance specialists to 
assess the group’s compliance logs and reports to identify actual and potential non
compliance with laws and regulations both those specific to the group’s business and 
those relating to the conduct of business generally analysed correspondence with regulators 
and monitored external sources we also assessed whether the group’s disclosures detailing 
significant legal proceedings adequately disclose the potential liabilities of the group
tax provisioning 2576m
refer to page 101 audit committee report page 138 accounting policy page 183 financial disclosures and page 87 financial  
risk management
the risk our response
due to the group operating in a number of 
different tax jurisdictions and the complexities 
of transfer pricing and other international tax 
legislation accruals for tax contingencies 
require the directors to make judgements 
and estimates in relation to tax issues 
and exposures
in this area our principal audit procedures included assessment of correspondence with 
the relevant tax authorities and the use of our own local and international tax specialists 
to analyse and challenge the assumptions used to determine tax provisions based on our 
knowledge and experiences of the application of the relevant legislation by authorities and 
courts we also assessed the adequacy of the group’s disclosures in respect of tax and 
uncertain tax positions
postretirement benefits 2261m
refer to page 101 audit committee report page 138 accounting policy page 159 financial disclosures and page 86 financial  
risk management
the risk our response
significant estimates are made in valuing 
the group’s postretirement defined benefit 
plans small changes in assumptions and 
estimates used to value the group’s net 
pension deficit would have a significant 
effect on the group’s financial position
our principal audit procedures included the challenge of key assumptions being the 
discount rate inflation rate and mortalitylife expectancy supporting the valuation of the 
group’s retirement benefit obligations with the support of our own actuarial specialists 
this involved a comparison of these key assumptions used against externally derived data 
we obtained third party assurance reports on controls over the valuation of pension assets 
held by key custodians and compared asset values to third party confirmations we also 
assessed the adequacy of the group’s disclosures in respect of postretirement benefits 
strategic report corporate governance additional information financial statements financial statements  auditor’s reports
astrazeneca annual report and form 20f information 2013 130
group revenue components’ absolute protslosses group total assets
key components 66
shared service centre 22
not covered by audit work 
key components 66
shared service centre 23
not covered by audit work 
key components 88
shared service centre 6
not covered by audit work 
scoping and coverage
4 our application of materiality and 
an overview of the scope of our audit
the materiality for the group financial 
statements as a whole was set at 248m 
this has been determined with reference to 
a benchmark of group profit before taxation 
which we consider to be one of the principal 
considerations for members of the 
company in assessing the financial 
performance of the group materiality 
represents 7 6 of group profit before tax 
and 50 of group profit before tax 
adjusted for this year’s significant intangible 
asset impairment as disclosed in note 9
we agreed with the audit committee to 
report to it all corrected and uncorrected 
misstatements we identified through  
our audit with a value in excess of  
12m in addition to other audit 
misstatements below that threshold  
that we believe warranted reporting  
on qualitative grounds
audits for group reporting purposes were 
performed by component auditors at seven 
key reporting components in the following 
countries the uk the us sweden china 
japan germany and france in addition 
specified audit procedures predominantly 
the testing of transaction processing 
and review controls for group reporting 
purposes were performed at the group’s 
shared service centres both inhouse and 
outsourced in the uk malaysia romania 
and india the coverage achieved by 
these group procedures is shown in the 
charts below 
the audits undertaken for group reporting 
purposes at the key reporting components 
of the group were all performed to lower 
materiality levels set individually for each 
component which ranged from 8m up 
to 188m
detailed audit instructions were sent to all 
the auditors in key components and shared 
service centres these instructions covered 
the significant audit areas that should be 
covered by these audits which included 
the relevant risks of material misstatement 
detailed above and set out the information 
required to be reported back to the group 
audit team the group audit team visited 
the key locations in the following countries 
to discuss key risks and audit strategy 
the uk the us sweden and japan video 
and telephone conference meetings were 
also held with the auditors at these locations 
and all other key reporting components 
that were not physically visited in addition 
detailed specified procedures instructions 
were sent to all audit teams for work to be 
carried out at the shared service centre 
locations reporting by exception is also 
obtained from the majority of the other 
subsidiaries where a local statutory audit 
is required but are not included in scope 
for audit or specified audit procedures 
group reporting
proﬁt before tax plus 
signiﬁcant impairment materiality
248m whole ﬁnancial 
 statements materiality
188m range of materiality at 
 seven key components
 8m188m
12m misstatements reported 
 to the audit committee
4979m
materiality of the group financial statements astrazeneca annual report and form 20f information 2013 131
under the listing rules we are required 
to review 
  the directors’ statement set out on 
page 136 in relation to going concern and
  the part of the corporate governance 
report on pages 88 to 97 relating to the 
company’s compliance with the nine 
provisions of the 2010 uk corporate 
governance code specified for our review
we have nothing to report in respect of the 
above responsibilities
7 other matter – we have reported 
separately on the parent company 
financial statements
we have reported separately on the 
parent company financial statements 
of astrazeneca plc for the year ended 
31 december 2013 and on the information 
in the directors’ remuneration report that 
is described as having been audited
scope of report and responsibilities
as explained more fully in the directors’ 
responsibilities statement set out on page 
127  the directors are responsible for the 
preparation of the financial statements 
and for being satisfied that they give a true 
and fair view a description of the scope of 
an audit of financial statements is provided 
on the financial reporting council’s website 
at wwwfrcorgukauditscopeukprivate 
this report is made solely to the company’s 
members as a body and is subject to 
important explanations and disclaimers 
regarding our responsibilities published 
on our website at wwwkpmgcomuk
auditscopeukco2013b which are 
incorporated into this report as if set out 
in full and should be read to provide an 
understanding of the purpose of this report 
the work we have undertaken and the basis 
of our opinions
antony cates
senior statutory auditor
for and on behalf of kpmg audit plc 
statutory auditor 
chartered accountants
15 canada square
london
e14 5gl
6 february 2014
5 our opinion on the other matter 
prescribed by the companies act 2006 
is unmodified
in our opinion the information given in the 
strategic report and the directors’ report 
for the financial year for which the financial 
statements are prepared is consistent with 
the group financial statements 
6 we have nothing to report in respect 
of the matters on which we are required 
to report by exception 
under isas uk and ireland we are required 
to report to you if based on the knowledge 
we acquired during our audit we have 
identified other information in this annual 
report that contains a material inconsistency 
with either that knowledge or the financial 
statements a material misstatement of 
fact or that is otherwise misleading 
in particular we are required to report to 
you if 
  we have identified material inconsistencies 
between the knowledge we acquired 
during our audit and the directors’ 
statement that they consider that the 
annual report and financial statements 
taken as a whole are fair balanced 
and understandable and provides the 
information necessary for shareholders 
to assess the group’s performance 
business model and strategy or
  the audit committee report does 
not appropriately address matters 
communicated by us to the 
audit committee
under the companies act 2006 we are 
required to report to you if in our opinion 
  certain disclosures of directors’ 
remuneration specified by law are 
not made or 
  we have not received all the information 
and explanations we require for our audit
strategic report corporate governance additional information financial statements financial statements
astrazeneca annual report and form 20f information 2013 132
notes
2013
m
2012
restated
m
2011
restated 
m
revenue 1 25711 27973 33591
cost of sales 5261 5393 6026
gross profit 20450 22580 27565
distribution costs 306 320 346
research and development expense 2 4821 5243 5523
selling general and administrative costs 2 12206 9839 11161
profit on disposal of subsidiary 2 22 – – 1483
other operating income and expense 2 595 970 777
operating profit 2 3712 8148 12795
finance income 3 50 42 50
finance expense 3 495 544 562
profit before tax 3267 7646 12283
taxation 4 696 1376 2333
profit for the period 2571 6270 9950
other comprehensive income
items that will not be reclassified to profit or loss
remeasurement of the defined benefit liability 18 8 13 657
tax on items that will not be reclassified to profit or loss 4 82 65 164
74 78 493
items that may be reclassified subsequently to profit or loss
foreign exchange arising on consolidation 166 106 60
foreign exchange differences on borrowings designated in net investment hedges 58 46 24
fair value movements on derivatives designated in net investment hedges 111 76 –
amortisation of loss on cash flow hedge 1 1 2
net available for sale gains taken to equity 69 72 31
tax on items that may be reclassified subsequently to profit or loss 4 4 4 16
39 213 13
other comprehensive income for the period net of tax 113 135 480
total comprehensive income for the period 2458 6405 9470
profit attributable to
owners of the parent 2556 6240 9917
noncontrolling interests 15 30 33
total comprehensive income attributable to
owners of the parent 2470 6395 9428
noncontrolling interests 12 10 42
basic earnings per 025 ordinary share 5 204 495 729
diluted earnings per 025 ordinary share 5 204 494 725
weighted average number of ordinary shares in issue millions 5 1252 1261 1361
diluted weighted average number of ordinary shares in issue millions 5 1254 1264 1367
dividends declared and paid in the period 21 3499 3619 3752
 restatement on adoption of ias 19 2011 as detailed in group accounting policies
all activities were in respect of continuing operations
m means millions of us dollars
consolidated statement of comprehensive income
for the year ended 31 december astrazeneca annual report and form 20f information 2013 133
notes
2013
m
2012
restated
m
2011
restated 
m
assets
noncurrent assets
property plant and equipment 7 5818 6089 6425
goodwill 8 9981 9898 9862
intangible assets 9 16047 16448 10980
derivative financial instruments 15 365 389 342
other investments 10 281 199 201
other receivables 12 1867 352 –
deferred tax assets 4 1205 1111 1514
35564 34486 29324
current assets
inventories 11 1909 2061 1852
trade and other receivables 12 7879 7629 8754
other investments 10 796 823 4248
derivative financial instruments 15 40 31 25
income tax receivable 494 803 1056
cash and cash equivalents 13 9217 7701 7571
20335 19048 23506
total assets 55899 53534 52830
liabilities
current liabilities
interestbearing loans and borrowings 14 1788 901 1990
trade and other payables 16 10362 9221 8975
derivative financial instruments 15 2 3 9
provisions 17 823 916 1388
income tax payable 3076 2862 3390
16051 13903 15752
noncurrent liabilities
interestbearing loans and borrowings 14 8588 9409 7338
derivative financial instruments 15 1 – –
deferred tax liabilities 4 2827 2576 2735
retirement benefit obligations 18 2261 2271 2680
provisions 17 566 428 474
other payables 16 2352 1001 385
16595 15685 13612
total liabilities 32646 29588 29364
net assets 23253 23946 23466
equity
capital and reserves attributable to equity holders of the company
share capital 20 315 312 323
share premium account 3983 3504 3078
capital redemption reserve 153 153 139
merger reserve 433 433 433
other reserves 19 1380 1374 1379
retained earnings 19 16960 17955 17888
23224 23731 23240
noncontrolling interests 29 215 226
total equity 23253 23946 23466
 restatement on adoption of ias 19 2011 as detailed in group accounting policies
the financial statements from page 132 to 186 were approved by the board on 6 february 2014 and were signed on its behalf by
pascal soriot marc dunoyer
director  director
consolidated statement of financial position
at 31 december
strategic report corporate governance additional information financial statements financial statements 
astrazeneca annual report and form 20f information 2013 134
share
capital
m
share
premium
account
m
capital
redemption
reserve
m
merger
reserve
m
other
reserves
m
retained
earnings
m
total
attributable
to owners
m
non
controlling
interests
m
total
equity
m
at 1 january 2011 as previously stated 352 2672 107 433 1377 18272 23213 197 23410
restatement – – – – – 6 6 – 6
at 1 january 2011 352 2672 107 433 1377 18266 23207 197 23404
profit for the period – – – – – 9917 9917 33 9950
other comprehensive income – – – – – 489 489 9 480
transfer to other reserves
1
– – – – 2 2 – – –
transactions with owners
dividends – – – – – 3752 3752 – 3752
issue of ordinary shares 3 406 – – – – 409 – 409
repurchase of ordinary shares 32 – 32 – – 6015 6015 – 6015
sharebased payments – – – – – 37 37 – 37
transfer from noncontrolling interests to payables – – – – – – – 9 9
dividend paid by subsidiary to noncontrolling interests – – – – – – – 4 4
net movement 29 406 32 – 2 378 33 29 62
at 31 december 2011 323 3078 139 433 1379 17888 23240 226 23466
profit for the period – – – – – 6240 6240 30 6270
other comprehensive income – – – – – 155 155 20 135
transfer to other reserves
1
– – – – 5 5 – – –
transactions with owners
dividends – – – – – 3619 3619 – 3619
issue of ordinary shares 3 426 – – – – 429 – 429
repurchase of ordinary shares 14 – 14 – – 2635 2635 – 2635
sharebased payments – – – – – 79 79 – 79
transfer from noncontrolling interests to payables – – – – – – – 10 10
dividend paid by subsidiary to noncontrolling interests – – – – – – – 11 11
net movement 11 426 14 – 5 67 491 11 480
at 31 december 2012 312 3504 153 433 1374 17955 23731 215 23946
profit for the period – – – – – 2556 2556 15 2571
other comprehensive income – – – – – 86 86 27 113
transfer to other reserves
1
– – – – 6 6 – – –
transactions with owners
dividends – – – – – 3499 3499 – 3499
issue of ordinary shares 3 479 – – – – 482 – 482
sharebased payments – – – – – 57 57 – 57
transfer from noncontrolling interests to payables – – – – – – – 6 6
dividend paid by subsidiary to noncontrolling interests – – – – – – – 3 3
net acquisition of noncontrolling interests
2
– – – – – 97 97 165 68
net movement 3 479 – – 6 995 507 186 693
at 31 december 2013 315 3983 153 433 1380 16960 23224 29 23253
 restatement on adoption of ias 19 2011 as detailed in group accounting policies
1
 amounts charged or credited to other reserves relate to exchange adjustments arising on goodwill
2
 net acquisition of noncontrolling interests in 2013 includes acquisitions with cash payments of 110m due in 2014 and disposals with cash of 42m received in the year
consolidated statement of changes in equity
for the year ended 31 december astrazeneca annual report and form 20f information 2013 135
notes
2013
m
2012
restated
m
2011
restated
m
cash flows from operating activities
profit before tax 3267 7646 12283
finance income and expense 3 445 502 512
depreciation amortisation and impairment 4583 2518 2550
increasedecrease in trade and other receivables 383 755 1108
decreaseincrease in inventories 135 150 256
increasedecrease in trade and other payables and provisions 414 1311 467
profit on disposal of subsidiary 22 – – 1483
noncash and other movements 258 424 597
cash generated from operations 8719 9536 12368
interest paid 475 545 548
tax paid 844 2043 3999
net cash inflow from operating activities 7400 6948 7821
cash flows from investing activities
acquisitions of business operations 22 1158 1187 –
movement in shortterm investments and fixed deposits 130 3619 2743
purchase of property plant and equipment 742 672 839
disposal of property plant and equipment 69 199 102
purchase of intangible assets 1316 3947 458
disposal of intangible assets 35 – –
purchase of noncurrent asset investments 91 46 11
disposal of noncurrent asset investments 38 43 –
net cash received on disposal of subsidiary 22 – – 1772
dividends received – 7 –
interest received 114 145 171
payments made by subsidiaries to noncontrolling interests 10 20 16
payments received by subsidiaries from noncontrolling interests 42 – –
net cash outflow from investing activities 2889 1859 2022
net cash inflow before financing activities 4511 5089 5799
cash flows from financing activities
proceeds from issue of share capital 482 429 409
repurchase of shares – 2635 6015
repayment of obligations under finance leases 27 17 –
issue of loans – 1980 –
repayment of loans – 1750 –
dividends paid 3461 3665 3764
hedge contracts relating to dividend payments 36 48 3
movement in shortterm borrowings 5 687 46
net cash outflow from financing activities 3047 4923 9321
net increasedecrease in cash and cash equivalents in the period 1464 166 3522
cash and cash equivalents at the beginning of the period 7596 7434 10981
exchange rate effects 65 4 25
cash and cash equivalents at the end of the period 13 8995 7596 7434
 restatement on adoption of ias 19 2011 as detailed in group accounting policies
consolidated statement of cash flows
for the year ended 31 december
strategic report corporate governance additional information financial statements financial statements 
astrazeneca annual report and form 20f information 2013 136
the group has also adopted the 
amendments to ias 1 ‘presentation of 
items in other comprehensive income’ 
issued in 2011 resulting in a change to 
the presentation of items within other 
comprehensive income in addition effective 
1 january 2013 the group has adopted 
ifrs 10 ‘consolidated financial statements’ 
ifrs 11 ‘joint arrangements’ ifrs 12 
‘disclosure of interests in other entities’ and 
ifrs 13 ‘fair value measurement’ along 
with consequential amendments to ias 27 
‘separate financial statements’ and ias 28 
‘investments in associates and joint 
ventures’ amendments to ifrs 7 ‘financial 
instruments disclosures on offsetting 
financial assets and liabilities’ and 
amendments to ias 36 ‘recoverable amount 
disclosures for nonfinancial assets’ 
the adoption of these new standards and 
amendments has not had a significant 
impact on the group’s profit for the period 
net assets or cash flows
the company has elected to prepare 
the company financial statements in 
accordance with uk accounting standards 
these are presented on pages 188 to 192 
and the accounting policies in respect 
of company information are set out on 
page 189
the consolidated financial statements 
are presented in us dollars which is the 
company’s functional currency
in preparing their individual financial 
statements the accounting policies of some 
overseas subsidiaries do not conform 
with iasb issued ifrss therefore where 
appropriate adjustments are made in order 
to present the consolidated financial 
statements on a consistent basis
basis for preparation of financial 
statements on a going concern basis
information on the business environment 
astrazeneca operates in including the 
factors underpinning the pharmaceutical 
industry’s future growth prospects is 
included in the strategic report details 
of the product portfolio of the group 
including patent expiry dates for key 
marketed products our approach to 
product development and our development 
pipeline are covered in detail with additional 
information by therapy area in the strategic 
report and directors’ report
the financial position of the group its 
cash flows liquidity position and borrowing 
facilities are described in the financial review 
from page 74 in addition note 23 to the 
financial statements includes the group’s 
objectives policies and processes for 
managing its capital its financial risk 
management objectives details of its 
financial instruments and hedging activities 
and its exposures to credit market and 
liquidity risk further details of the 
group’s cash balances and borrowings 
are included in notes 13 and 14 to the 
financial statements
the group has considerable financial 
resources available as at 31 december 
2013 the group has 104bn in financial 
resources cash balances of 92bn and 
undrawn committed bank facilities of 30bn 
that are available until april 2018 with only 
18bn of debt due within one year the 
group’s revenues are largely derived from 
sales of products which are covered by 
patents which provide a relatively high level 
of resilience and predictability to cash 
inflows although our revenue is expected 
to continue to be significantly impacted 
by the expiry of patents over the medium 
term in addition recent government price 
interventions in response to budgetary 
constraints are expected to continue to 
adversely affect revenues in many of our 
mature markets however we anticipate new 
revenue streams from both recently launched 
medicines and products in development and 
the group has a wide diversity of customers 
and suppliers across different geographic 
areas consequently the directors believe 
that overall the group is well placed to 
manage its business risks successfully
after making enquiries the directors have 
a reasonable expectation that the company 
and the group have adequate resources 
to continue in operational existence for 
the foreseeable future accordingly they 
continue to adopt the going concern 
basis in preparing the annual report and 
financial statements
estimates and judgements
the preparation of the financial statements 
in conformity with generally accepted 
accounting principles requires management 
to make estimates and judgements that 
affect the reported amounts of assets 
and liabilities at the date of the financial 
statements and the reported amounts of 
revenues and expenses during the reporting 
period actual results could differ from 
those estimates
judgements include matters such as the 
determination of operating segments while 
estimates focus on areas such as carrying 
values and estimated useful lives
astrazeneca’s management considers 
the following to be the most important 
accounting policies in the context of the 
group’s operations
basis of accounting and preparation  
of financial information
the consolidated financial statements 
have been prepared under the historical cost 
convention modified to include revaluation 
to fair value of certain financial instruments 
as described below in accordance with 
the companies act 2006 and international 
financial reporting standards ifrss 
as adopted by the eu adopted ifrss 
in response to the ias regulation ec 
16062002 the consolidated financial 
statements also comply fully with ifrss 
as issued by the international accounting 
standards board
during the year the group adopted the 
amendments to ias 19 ‘employee benefits’ 
issued in 2011 under ias 19 2011 the 
group determines net interest on the net 
retirement benefit obligation by applying the 
discount rate used to measure the retirement 
benefit obligations at the beginning of the 
annual period taking account of any changes 
in the net retirement benefit obligation 
during the period as a result of contribution 
and benefit payments consequently 
the net charge to ‘finance expense’ now 
comprises interest cost on the defined 
benefit obligation and interest income on 
plan assets previously the group 
determined interest income on plan assets 
based on their longterm rate of expected 
return and recorded it as ‘finance income’ 
as a result of applying the discount rate as 
detailed above the net finance expense 
has been restated to reflect an increase 
of 72m for 2012 and 84m for 2011 
with an equal and opposite decrease 
recognised in other comprehensive 
income a consequential decrease to the 
taxation charge of 15m and 18m for 
2012 and 2011 respectively has been 
recorded with an equal and opposite 
increase recognised in the income tax 
recorded within other comprehensive 
income basic earnings per share for 2012 
have been restated from 499 to 495 
2011 733 to 729 diluted earnings per 
share for 2012 have also been restated from 
498 to 494 2011 7 30 to 725 the 
impact of adopting the amended standard 
in 2013 is to increase our net interest 
charge by approximately 115m along with 
consequential impacts as detailed above 
in addition to these adjustments to our 
consolidated statement of comprehensive 
income the group’s net assets for 2012 and 
2011 have reduced by 6m on adoption of 
the amendments to ias 19 as previously 
unrecognised past service costs which were 
recognised over the remaining service life 
of the employees are now recognised 
retrospectively in retained earnings
group accounting policies astrazeneca annual report and form 20f information 2013 137
research and development
research expenditure is recognised in 
profit in the year in which it is incurred
internal development expenditure is 
capitalised only if it meets the recognition 
criteria of ias 38 ‘intangible assets’ 
where regulatory and other uncertainties 
are such that the criteria are not met the 
expenditure is recognised in profit and 
this is almost invariably the case prior to 
approval of the drug by the relevant regulatory 
authority where however recognition 
criteria are met intangible assets are 
capitalised and amortised on a straightline 
basis over their useful economic lives from 
product launch at 31 december 2013 no 
amounts have met recognition criteria
payments to inlicence products and 
compounds from third parties for new 
research and development projects 
inprocess research and development 
generally taking the form of up front 
payments and milestones are capitalised 
where payments made to third parties 
represent future research and development 
activities an evaluation is made as to the 
nature of the payments such payments are 
expensed if they represent compensation for 
subcontracted research and development 
services not resulting in a transfer of 
intellectual property by contrast 
payments are capitalised if they represent 
compensation for the transfer of intellectual 
property developed at the risk of the third 
party since acquired products and 
compounds will only generate sales and 
cash inflows following launch our policy is 
to minimise the period between final approval 
and launch if it is within astrazeneca’s 
control to do so assets capitalised are 
amortised on a straightline basis over 
their useful economic lives from product 
launch under this policy it is not possible 
to determine precise economic lives for 
individual classes of intangible assets 
however lives do not exceed 20 years 
intangible assets relating to products in 
development both internally generated 
and externally acquired are subject to 
impairment testing annually all intangible 
assets are tested for impairment when 
there are indications that the carrying value 
may not be recoverable any impairment 
losses are recognised immediately in profit 
intangible assets relating to products 
which fail during development or for which 
development ceases for other reasons 
are tested for impairment at the point of 
termination and are written down to their 
recoverable amount which is usually zero
if subsequent to an impairment loss being 
recognised development restarts or other 
facts and circumstances change indicating 
that the impairment is less or no longer exists 
the value of the asset is reestimated 
and its carrying value is increased to the 
recoverable amount but not exceeding 
the original value by recognising an 
impairment reversal in profit
business combinations and goodwill
on the acquisition of a business fair values 
are attributed to the identifiable assets and 
liabilities and contingent liabilities unless 
the fair value cannot be measured reliably 
in which case the value is subsumed into 
goodwill where fair values of acquired 
contingent liabilities cannot be measured 
reliably the assumed contingent liability is 
not recognised but is disclosed in the 
same manner as other contingent liabilities
future contingent elements of consideration 
which may include development and launch 
milestones revenue threshold milestones 
and revenuebased royalties are fair valued 
at the date of acquisition using decisiontree 
analysis with key inputs including probability 
of success consideration of potential delays 
and revenue projections based on the 
group’s internal forecasts unsettled 
amounts of consideration are held at fair 
value within payables with changes in fair 
value recognised immediately in profit
goodwill is the difference between the 
fair value of the consideration and the fair 
value of net assets acquired
goodwill arising on acquisitions is capitalised 
and subject to an impairment review both 
annually and when there is an indication that 
the carrying value may not be recoverable 
between 1 january 1998 and 31 december 
2002 goodwill was amortised over its 
estimated useful life such amortisation 
ceased on 31 december 2002
the group’s policy up to and including 1997 
was to eliminate goodwill arising upon 
acquisitions against reserves under ifrs 1 
‘firsttime adoption of international financial 
reporting standards’ and ifrs 3 ‘business 
combinations’ such goodwill will remain 
eliminated against reserves
joint arrangements
the group has arrangements over which it 
has joint control and which qualify as joint 
arrangements under ifrs 11 the form of 
these arrangements are joint operations 
the group recognises its share of revenue 
that it earns from the joint operations and 
its share of expenses incurred the group 
also recognises the assets associated 
with the joint operations that it controls 
and the liabilities it incurs under the joint 
arrangement collaboration agreements
the accounting policy descriptions set out 
the areas where judgements and estimates 
need exercising the most significant of 
which are revenue recognition research and 
development including impairment reviews 
of associated intangible assets business 
combinations and goodwill litigation and 
environmental liabilities employee benefits 
and taxation
further information on estimates and 
critical judgements made in applying 
accounting policies including details of 
significant methods and assumptions 
used is included in notes 4 6 8 9 18 
22 and 25 to the financial statements 
financial risk management policies are 
detailed in note 23
revenue
revenues comprise sales and income 
under copromotion and codevelopment 
agreements
income under copromotion and co
development agreements is recognised 
when it is earned as defined in the contract 
and can be reliably estimated in general 
this is upon the sale of the copromoted
codeveloped product or upon the delivery 
of a promotional or developmental service
revenues exclude intercompany revenues 
and valueadded taxes and represent net 
invoice value less estimated rebates returns 
and settlement discounts revenues are 
recognised when the significant risks and 
rewards of ownership have been transferred 
to a third party in general this is upon 
delivery of the products to wholesalers 
in markets where returns are significant 
currently only in the us estimates of returns 
are accounted for at the point revenue is 
recognised in markets where returns are not 
significant they are recorded when returned
for the us market we estimate the quantity 
and value of goods which may ultimately 
be returned at the point of sale our returns 
accruals are based on actual experience 
over the preceding 12 months for established 
products together with marketrelated 
information such as estimated stock levels at 
wholesalers and competitor activity which we 
receive via third party information services 
for newly launched products we use 
rates based on our experience with similar 
products or a predetermined percentage
when a product faces generic competition 
particular attention is given to the possible 
levels of returns and in cases where the 
circumstances are such that the level of 
returns and hence revenue cannot be 
measured reliably revenues are only 
recognised when the right of return expires 
which is generally on ultimate prescription 
of the product to patients
strategic report corporate governance additional information financial statements financial statements  group accounting policies
astrazeneca annual report and form 20f information 2013 138
accruals for tax contingencies require 
management to make judgements and 
estimates of exposures in relation to tax 
audit issues tax benefits are not recognised 
unless the tax positions will probably be 
sustained once considered to be probable 
management reviews each material tax 
benefit to assess whether a provision 
should be taken against full recognition 
of that benefit on the basis of potential 
settlement through negotiation andor 
litigation all provisions are included in 
current liabilities any liability to interest 
on tax liabilities is provided for in the tax 
charge see note 25 to the financial 
statements for further details
sharebased payments
all plans are assessed and have been 
classified as equity settled the grant date 
fair value of employee share plan awards is 
calculated using a modified version of the 
binomial model in accordance with ifrs 2 
‘sharebased payment’ the resulting cost is 
recognised in profit over the vesting period 
of the awards being the period in which the 
services are received the value of the charge 
is adjusted to reflect expected and actual 
levels of awards vesting except where the 
failure to vest is as a result of not meeting 
a market condition cancellations of equity 
instruments are treated as an acceleration 
of the vesting period and any outstanding 
charge is recognised in profit immediately
property plant and equipment
the group’s policy is to write off the 
difference between the cost of each item 
of property plant and equipment and its 
residual value over its estimated useful life 
on a straightline basis assets under 
construction are not depreciated
reviews are made annually of the estimated 
remaining lives and residual values of 
individual productive assets taking 
account of commercial and technological 
obsolescence as well as normal wear and 
tear under this policy it becomes impractical 
to calculate average asset lives exactly 
however the total lives range from 
approximately 10 to 50 years for buildings 
and three to 15 years for plant and 
equipment all items of property plant and 
equipment are tested for impairment when 
there are indications that the carrying value 
may not be recoverable any impairment 
losses are recognised immediately in profit
borrowing costs
the group has no borrowing costs with 
respect to the acquisition or construction 
of qualifying assets all other borrowing 
costs are recognised in profit as incurred 
and in accordance with the effective interest 
rate method
leases
leases are classified as finance leases if 
they transfer substantially all the risks and 
rewards incidental to ownership otherwise 
they are classified as operating leases 
assets and liabilities arising on finance 
leases are initially recognised at fair value or 
if lower the present value of the minimum 
lease payments the discount rate used in 
calculating the present value of the minimum 
lease payments is the interest rate implicit 
in the lease finance charges under finance 
leases are allocated to each reporting period 
so as to produce a constant periodic rate 
of interest on the remaining balance of the 
finance liability rentals under operating 
leases are charged to profit on a straight
line basis
subsidiaries
a subsidiary is an entity controlled directly 
or indirectly by astrazeneca plc control 
is regarded as the exposure or rights to the 
variable returns of the entity when combined 
with the power to affect those returns
the financial results of subsidiaries are 
consolidated from the date control is 
obtained until the date that control ceases
inventories
inventories are stated at the lower of cost 
and net realisable value the first in first out 
or an average method of valuation is used 
for finished goods and work in progress 
cost includes directly attributable costs 
and certain overhead expenses including 
depreciation selling expenses and certain 
other overhead expenses principally central 
administration costs are excluded net 
realisable value is determined as estimated 
selling price less all estimated costs of 
completion and costs to be incurred in 
selling and distribution
writedowns of inventory occur in the general 
course of business and are recognised in 
cost of sales
trade and other receivables
financial assets included in trade and other 
receivables are recognised initially at fair 
value subsequent to initial recognition they 
are measured at amortised cost using the 
effective interest rate method less any 
impairment losses
trade and other payables
financial liabilities included in trade and 
other payables are recognised initially at 
fair value subsequent to initial recognition 
they are measured at amortised cost using 
the effective interest rate method
employee benefits
as detailed in the basis of accounting and 
preparation of financial information section 
the group accounts for pensions and other 
employee benefits principally healthcare 
under ias 19 2011 in respect of defined 
benefit plans obligations are measured at 
discounted present value while plan assets 
are measured at fair value the operating 
and financing costs of such plans are 
recognised separately in profit current 
service costs are spread systematically 
over the lives of employees and financing 
costs are recognised in full in the periods 
in which they arise remeasurements of 
the net defined pension liability including 
actuarial gains and losses are recognised 
immediately in other comprehensive income
where the calculation results in a surplus to 
the group the recognised asset is limited 
to the present value of any available future 
refunds from the plan or reductions in 
future contributions to the plan payments 
to defined contribution plans are recognised 
in profit as they fall due
taxation
the current tax payable is based on taxable 
profit for the year taxable profit differs 
from reported profit because taxable profit 
excludes items that are either never taxable 
or tax deductible or items that are taxable 
or tax deductible in a different period 
the group’s current tax assets and liabilities 
are calculated using tax rates that have been 
enacted or substantively enacted by the 
reporting date
deferred tax is provided using the balance 
sheet liability method providing for temporary 
differences between the carrying amounts 
of assets and liabilities for financial reporting 
purposes and the amounts used for taxation 
purposes deferred tax assets are recognised 
to the extent that it is probable that taxable 
profit will be available against which the asset 
can be utilised this requires judgements 
to be made in respect of the availability of 
future taxable income
no deferred tax asset or liability is recognised 
in respect of temporary differences 
associated with investments in subsidiaries 
and branches where the group is able to 
control the timing of reversal of the temporary 
differences and it is probable that the 
temporary differences will not reverse in 
the foreseeable future
the group’s deferred tax assets and 
liabilities are calculated using tax rates that 
are expected to apply in the period when the 
liability is settled or the asset realised based 
on tax rates that have been enacted or 
substantively enacted by the reporting date astrazeneca annual report and form 20f information 2013 139
bank and other borrowings
the group uses derivatives principally 
interest rate swaps to hedge the interest 
rate exposure inherent in a portion of its 
fixed interest rate debt in such cases the 
group will either designate the debt as fair 
value through profit or loss when certain 
criteria are met or as the hedged item 
under a fair value hedge
if the debt instrument is designated as 
fair value through profit or loss the debt is 
initially measured at fair value with direct 
transaction costs being included in profit 
as an expense and is remeasured to fair 
value at each reporting date with changes 
in carrying value being recognised in profit 
along with changes in the fair value of the 
related derivative such a designation has 
been made where this significantly reduces 
an accounting mismatch which would result 
from recognising gains and losses on 
different bases
if the debt is designated as the hedged item 
under a fair value hedge the debt is initially 
measured at fair value with direct transaction 
costs being amortised over the life of the 
bonds and is remeasured for fair value 
changes in respect of the hedged risk 
at each reporting date with changes in 
carrying value being recognised in profit 
along with changes in the fair value of the 
related derivative
other interestbearing loans are initially 
measured at fair value with direct transaction 
costs being amortised over the life of the 
bond and are subsequently remeasured to 
amortised cost using the effective interest 
rate method at each reporting date changes 
in carrying value are recognised in profit
derivatives
derivatives are initially measured at fair 
value with direct transaction costs being 
included in profit as an expense and are 
subsequently remeasured to fair value at 
each reporting date changes in carrying 
value are recognised in profit
foreign currencies
foreign currency transactions being 
transactions denominated in a currency 
other than an individual group entity’s 
functional currency are translated into the 
relevant functional currencies of individual 
group entities at average rates for the 
relevant monthly accounting periods 
which approximate to actual rates
monetary assets arising from foreign 
currency transactions are retranslated at 
exchange rates prevailing at the reporting 
date exchange gains and losses on loans 
and on shortterm foreign currency 
borrowings and deposits are included within 
finance expense exchange differences on 
all other foreign currency transactions are 
recognised in operating profit in the individual 
group entity’s accounting records
nonmonetary items arising from 
foreign currency transactions are not 
retranslated in the individual group entity’s 
accounting records
in the consolidated financial statements 
income and expense items for group entities 
with a functional currency other than us 
dollars are translated into us dollars at 
average exchange rates which approximate 
to actual rates for the relevant accounting 
periods assets and liabilities are translated 
at the us exchange rates prevailing at 
the reporting date exchange differences 
arising on consolidation are recognised in 
other comprehensive income
if certain criteria are met nonus dollar 
denominated loans or derivatives are 
designated as net investment hedges of 
foreign operations exchange differences 
arising on retranslation of net investments 
and of foreign currency loans which are 
designated in an effective net investment 
hedge relationship are recognised in other 
comprehensive income in the consolidated 
financial statements foreign exchange 
derivatives hedging net investments in 
foreign operations are carried at fair value 
effective fair value movements are recognised 
in other comprehensive income with 
any ineffectiveness taken to the income 
statement gains and losses accumulated 
in the translation reserve will be recycled to 
profit when the foreign operation is sold
litigation and environmental liabilities
through the normal course of business 
astrazeneca is involved in legal disputes 
the settlement of which may involve cost 
to the group provision is made where an 
adverse outcome is probable and associated 
costs including related legal costs can be 
estimated reliably in other cases appropriate 
disclosures are included
where it is considered that the group is 
more likely than not to prevail or in the rare 
circumstances where the amount of the 
legal liability cannot be estimated reliably 
legal costs involved in defending the claim 
are charged to profit as they are incurred
where it is considered that the group has 
a valid contract which provides the right to 
reimbursement from insurance or otherwise 
of legal costs andor all or part of any loss 
incurred or for which a provision has been 
established the best estimate of the amount 
expected to be received is recognised as 
an asset only when it is virtually certain
astrazeneca is exposed to environmental 
liabilities relating to its past operations 
principally in respect of soil and groundwater 
remediation costs provisions for these costs 
are made when there is a present obligation 
and where it is probable that expenditure 
on remedial work will be required and a 
reliable estimate can be made of the cost 
provisions are discounted where the effect 
is material
financial instruments
the group’s financial instruments 
include interests in leases trade and 
other receivables and payables and rights 
and obligations under employee benefit 
plans which are dealt with in specific 
accounting policies
the group’s other financial 
instruments include
  cash and cash equivalents
  fixed deposits
  other investments
  bank and other borrowings
  derivatives
cash and cash equivalents
cash and cash equivalents comprise cash 
in hand current balances with banks and 
similar institutions and highly liquid 
investments with maturities of three months 
or less when acquired they are readily 
convertible into known amounts of cash 
and are held at amortised cost
fixed deposits
fixed deposits principally comprising 
funds held with banks and other financial 
institutions are initially measured at fair 
value plus direct transaction costs and 
are subsequently remeasured to amortised 
cost using the effective interest rate method 
at each reporting date changes in carrying 
value are recognised in profit
other investments
where investments have been classified as 
held for trading they are measured initially 
at fair value and subsequently remeasured 
to fair value at each reporting date changes 
in fair value are recognised in profit
in all other circumstances the investments 
are classified as ‘available for sale’ initially 
measured at fair value including direct 
transaction costs and subsequently 
remeasured to fair value at each reporting 
date changes in carrying value due to 
changes in exchange rates on monetary 
available for sale investments or impairments 
are recognised in profit all other changes 
in fair value are recognised in other 
comprehensive income
impairments are recorded in profit when there 
is a decline in the value of an investment 
that is deemed to be other than temporary 
on disposal of the investment the cumulative 
amount recognised in other comprehensive 
income is recognised in profit as part of the 
gain or loss on disposal
strategic report corporate governance additional information financial statements financial statements  group accounting policies
astrazeneca annual report and form 20f information 2013 140
applicable accounting standards 
and interpretations issued but not 
yet adopted
ifrs 9 ‘financial instruments’ was reissued 
in october 2010 and amended in november 
2013 it is applicable to financial assets and 
financial liabilities for financial assets it 
requires classification and measurement 
in either the amortised cost or the fair value 
category for a company’s own debt held 
at fair value the standard requires the 
movement in the fair value as a result of 
changes in the company’s own credit risk to 
be included in other comprehensive income 
under the amendment issued in november 
2013 there is no mandatory effective date 
of ifrs 9 the standard has not yet been 
endorsed by the eu the adoption of ifrs 9 
is not expected to have a significant impact 
upon the group’s net results or net assets
the amendments to ias 32 on offsetting 
financial assets and liabilities and ias 39 
on novation of derivatives and continuation 
of hedge accounting are effective for 
accounting periods beginning on or after 
1 january 2014 ifric interpretation 21 
‘levies’ is also effective for periods beginning 
on or after 1 january 2014 the amendments 
to ias 19 employee contributions is effective 
for the period beginning on or after 1 july 
2014 none of the amendments or the 
interpretation are expected to have a 
significant impact upon the group’s net 
results net assets or disclosures the 
amendment to ias 32 was endorsed by 
the eu in 2012 and the amendment to 
ias 39 was endorsed by the eu in 2013 
the amendments to ias 19 and ifric 
interpretation 21 have yet to be endorsed 
by the eu
impairment
the carrying values of nonfinancial assets 
other than inventories and deferred tax 
assets are reviewed at least annually to 
determine whether there is any indication of 
impairment for goodwill intangible assets 
under development and for any other assets 
where such indication exists the asset’s 
recoverable amount is estimated based 
on the greater of its value in use and its fair 
value less cost to sell in assessing value 
in use the estimated future cash flows 
adjusted for the risks specific to each 
asset are discounted to their present value 
using a discount rate that reflects current 
market assessments of the time value of 
money and the general risks affecting the 
pharmaceutical industry for the purpose 
of impairment testing assets are grouped 
together into the smallest group of assets 
that generates cash inflows from continuing 
use that are largely independent of the cash 
flows of other assets impairment losses are 
recognised immediately in profit
international accounting transition
on transition to using adopted ifrss in  
the year ended 31 december 2005 the 
group took advantage of several optional 
exemptions available in ifrs 1 ‘firsttime 
adoption of international financial reporting 
standards’ the major impacts which are 
of continuing importance are detailed below
  business combinations – ifrs 3 ‘business 
combinations’ has been applied 
from 1 january 2003 the date of 
transition rather than being applied fully 
retrospectively as a result the combination 
of astra and zeneca is still accounted for 
as a merger rather than through purchase 
accounting if purchase accounting had 
been adopted zeneca would have been 
deemed to have acquired astra
  cumulative exchange differences – 
the group chose to set the cumulative 
exchange difference reserve at 
1 january 2003 to zero astrazeneca annual report and form 20f information 2013 141
1 product revenue information
2013
m
2012
m
2011
m
cardiovascular and metabolic
crestor 5622 6253 6622
atacand 611 1009 1450
selokentoprolxl 750 918 986
onglyza 378 323 211
plendil 260 252 256
tenormin 197 229 270
brilintabrilique 283 89 21
byetta 206 74 –
bydureon 151 37 –
forxiga 10 – –
others 362 347 396
total cardiovascular and metabolic 8830 9531 10212
oncology
zoladex 996 1093 1179
faslodex 681 654 546
iressa 647 611 554
arimidex 351 543 756
casodex 376 454 550
others 142 134 120
total oncology 3193 3489 3705
respiratory inflammation and autoimmunity
symbicort 3483 3194 3148
pulmicort 867 866 892
others 327 355 428
total respiratory inflammation and autoimmunity 4677 4415 4468
neuroscience
seroquel xr 1337 1509 1490
seroquel ir 345 1294 4338
local anaesthetics 510 540 602
vimovo 91 65 34
others 452 515 740
total neuroscience 2735 3923 7204
gastrointestinal
nexium 3872 3944 4429
losecprilosec 486 710 946
others 231 198 161
total gastrointestinal 4589 4852 5536
infection and other
synagis 1060 1038 975
merrem 293 396 583
flumist 245 181 161
other products 89 100 137
total infection and other 1687 1715 1856
astra tech – – 386
aptium oncology – 48 224
total 25711 27973 33591
notes to the group financial statements
strategic report corporate governance additional information financial statements financial statements  notes to the group financial statements
astrazeneca annual report and form 20f information 2013 142
2 operating profit
operating profit includes the following items
research and development expense
in 2013 research and development includes a reversal of the intangible asset impairment charge of 285m booked in 2011 for olaparib 
it also includes an impairment charge of 138m against bydureon following revised estimates for future sales performance below 
astrazeneca’s commercial expectations at the time of entering into our collaboration with bms on amylin products in 2012 and an 
impairment charge of 136m following astrazeneca’s decision not to proceed with regulatory filings for fostamatinib research and 
development in 2012 includes a 50m impairment following the decision by astrazeneca not to pursue a regulatory filing for tc5214 
in 2011 research and development includes a 285m impairment charge related to the termination of development of the investigational 
compound olaparib for the maintenance treatment of serous ovarian cancer and 150m impairment charge related to the intangible assets 
held in relation to tc5214 
selling general and administrative costs
in 2013 selling general and administrative costs includes an intangible asset impairment charge of 1620m against bydureon following 
revised estimates for future sales performance as detailed above selling general and administrative costs in 2012 includes net legal provisions 
of 72m in respect of net legal provision charges relating to ongoing seroquel franchise legal matters average wholesale price litigation 
in the us the toprolxl antitrust litigation and nexium commercial litigation in 2011 selling general and administrative costs included 
135m of net legal provision charges all of which were in respect of the ongoing seroquel franchise legal matters average wholesale 
price litigation in the us and the toprolxl antitrust litigation the current status of these matters is described in note 25 these provisions 
constituted our best estimate at that time of losses expected for these matters
further details of impairment charges and reversals for 2013 2012 and 2011 are included in notes 7 and 9
profit on disposal of subsidiary
the profit on disposal of subsidiary in 2011 of 1483m relates to the sale of the astra tech business to dentsply international inc 
further details are included in note 22
other operating income and expense
2013
m 
2012
m
2011
m
royalties
income 621 659 610
amortisation 157 92 51
net gain on disposal of noncurrent assets 13 8 33
gains on disposal of product rights 20 255 –
other income 120 140 226
other expense 22 – 41
other operating income and expense 595 970 777
royalty amortisation and impairment relates to income streams acquired with medimmune and from 2012 amounts relating to our 
arrangements with merck
restructuring costs
during 2013 the group announced the fourth phase of its restructuring programme as approved by the set the tables below show 
the costs that have been charged in respect of restructuring programmes by cost category and type severance provisions are detailed 
in note 17
2013
m
2012
m
2011
m
cost of sales 126 136 54
research and development expense 490 791 468
selling general and administrative costs 805 631 639
total charge 1421 1558 1161
2013
m
2012
m
2011
m
severance costs 632 819 403
accelerated depreciation and impairment 399 328 290
other 390 411 468
total charge 1421 1558 1161
other costs are those incurred in designing and implementing the group’s various restructuring initiatives including internal project costs 
external consultancy fees and staff relocation costs
financial instruments
included within operating profit are the following net gains and losses on financial instruments
2013
m
2012
m
2011
m
gainslosses on forward foreign exchange contracts 102 139 75
lossesgains on receivables and payables 136 153 68
gainslosses on available for sale current investments 13 12 22
total 21 2 29 astrazeneca annual report and form 20f information 2013 143
3 finance income and expense
2013
m
2012
restated
m
2011
restated
m
finance income
returns on fixed deposits and equity securities 9 18 9
returns on shortterm deposits 23 24 37
fair value gains on debt interest rate swaps and investments 18 – 4
total 50 42 50
finance expense
interest on debt and commercial paper 388 404 404
interest on overdrafts finance leases and other financing costs 25 22 29
net interest on postemployment defined benefit plan net liabilities 79 93 121
fair value charges on debt interest rate swaps and investments – 10 –
net exchange losses 3 15 8
total 495 544 562
net finance expense 445 502 512
financial instruments
included within finance income and expense are the following net gains and losses on financial instruments
2013
m
2012
m
2011
m
interest and fair value adjustments in respect of debt designated at fair value through profit or loss net of derivatives 4 18 6
interest and changes in carrying values of debt designated as hedged items net of derivatives 5 16 17
interest and fair value changes on fixed and shortterm deposits and equity securities 42 37 45
interest on debt overdrafts finance leases and commercial paper held at amortised cost 406 397 405
exchange losses on financial assets and liabilities 3 15 8
total 366 409 391
43m fair value losses 2012 22m fair value losses 2011 10m fair value gains on interest rate fair value hedging instruments and 42m 
fair value gains 2012 21m fair value gains 2011 9m fair value losses on the related hedged items have been included within interest 
and changes in carrying values of debt designated as hedged items net of derivatives all fair value hedge relationships were effective 
during the year
77m fair value losses 2012 27m fair value losses 2011 29m fair value gains on derivatives related to debt instruments designated 
at fair value through profit or loss and 82m fair value gains 2012 18m fair value gains 2011 26m fair value losses on debt instruments 
designated at fair value through profit or loss have been included within interest and fair value adjustments in respect of debt designated 
at fair value through profit or loss net of derivatives ineffectiveness on the net investment hedge taken to profit was nil 2012 nil 
2011 nil 
4 taxation
taxation restated for the impact of adoption of ias 19 2011 as detailed in the group accounting policy section of these financial 
statements recognised in the profit for the period in the consolidated statement of comprehensive income is as follows
2013
m
2012
restated
m
2011
restated
m
current tax expense
current year 1352 1756 2675
adjustment for prior years 46 79 102
1398 1677 2573
deferred tax expense
origination and reversal of temporary differences 699 165 154
adjustment to prior years 3 136 86
702 301 240
taxation recognised in the profit for the period 696 1376 2333
strategic report corporate governance additional information financial statements financial statements  notes to the group financial statements
astrazeneca annual report and form 20f information 2013 144
4 taxation continued
taxation relating to components of other comprehensive income is as follows
2013
m
2012
restated
m
2011
restated
m
current and deferred tax
items that will not be reclassified to profit or loss
remeasurement of the defined benefit liability 7 13 196
deferred tax impact of reduction in sweden and uk tax rates 92 84 53
sharebased payments 17 7 21
other – 1 –
total 82 65 164
items that may be reclassified subsequently to profit or loss
foreign exchange arising on consolidation 19 14 12
net available for sale gains recognised in other comprehensive income 16 18 –
other 1 8 4
total 4 4 16
taxation relating to components of other comprehensive income 78 61 180
taxation has been provided at current rates on the profits earned for the periods covered by the group financial statements the 2013 
prior period current tax adjustment relates mainly to an increase in provisions for tax contingencies partially offset by tax accrual to tax 
return adjustments the 2012 prior period current tax adjustment relates to a benefit of 259m arising from a number of tax settlements 
including settlement of a transfer pricing matter partially offset by an increase in provisions for other tax contingencies and tax accrual 
to tax return adjustments the 2011 prior period current tax adjustment relates to a benefit of 520m arising from a number of tax 
settlements partially offset by an increase in provisions for other tax contingencies and tax accrual to tax return adjustments the 2013 
prior period deferred tax adjustment relates to tax accrual to tax return adjustments the 2012 prior period deferred tax adjustment 
relates to a benefit of 102m arising from a number of tax settlements including settlements of a transfer pricing matter and tax accrual 
to tax return adjustments the 2011 prior period deferred tax adjustment relates mainly to tax accrual to tax return adjustments and a 
reclassification from deferred tax to current tax of amounts provided in relation to tax contingencies for prior periods
to the extent that dividends remitted from overseas subsidiaries joint ventures and associates are expected to result in additional taxes 
appropriate amounts have been provided for no deferred tax has been provided for unremitted earnings of group companies overseas 
as these are considered permanently employed in the business of these companies unremitted earnings may be liable to overseas 
taxes andor uk taxation after allowing for double tax relief if distributed as dividends the aggregate amount of temporary differences 
associated with investments in subsidiaries and branches for which deferred tax liabilities have not been recognised totalled approximately 
6196m at 31 december 2013 2012 8655m 2011 9155m
factors affecting future tax charges
as a group involved in worldwide operations astrazeneca is subject to several factors that may affect future tax charges principally the 
levels and mix of profitability in different jurisdictions transfer pricing regulations tax rates imposed and tax regime reforms in 2013 
the uk government has enacted legislation to reduce the main rate of uk statutory corporation tax to 20 by 2015 details of material 
tax exposures and items currently under audit and negotiation are set out in note 25
tax reconciliation to uk statutory rate
the table below reconciles the uk statutory tax charge to the group’s total tax charge
2013
m
2012
restated
m
2011
restated
m
profit before tax 3267 7646 12283
notional taxation charge at uk corporation tax rate of 2325 2012 245 2011 265 760 1873 3255
differences in effective overseas tax rates 29 80 336
deferred tax credit relating to reduction in sweden uk and other tax rates
1
59 271 53
unrecognised deferred tax asset 20 18 5
items not deductible for tax purposes 11 116 71
items not chargeable for tax purposes 10 29 32
nontaxable gain arising from the astra tech disposal – – 389
adjustments in respect of prior periods 43 215 188
total tax charge for the year 696 1376 2333
 restatement on adoption of ias 19 2011 as detailed in group accounting policies
1
 the 2013 item relates to the reduction in the uk statutory corporation tax rate from 23 to the rate of tax of 20 effective from 1 april 2015 the 2012 item relates to the reduction in the sweden 
statutory corporation tax rate from 263 to 22 effective 1 january 2013 and the uk statutory corporation tax rate from 25 the tax rate which was substantively enacted as effective from 
1 april 2012 as at 31 december 2011 to the tax rate of 23 effective from 1 april 2013 the 2011 item relates to the reduction in the uk statutory corporation tax rate from 27 the tax rate which 
was substantively enacted as effective from 1 april 2011 as at 31 december 2010 to the tax rate of 25 effective from 1 april 2012 astrazeneca annual report and form 20f information 2013 145
4 taxation continued
astrazeneca is domiciled in the uk but operates in other countries where the tax rates and tax laws are different to those in the uk 
the impact of differences in effective overseas tax rates on the group’s overall tax charge is shown above profits arising from our 
manufacturing operation in puerto rico are granted special status and are taxed at a reduced rate compared with the normal rate of 
tax in that territory under a tax incentive grant that expires in 2016
deferred tax
the movements in the net deferred tax balance during the year are as follows
property 
plant and 
equipment
6
m
intangible 
assets
6
m
pension 
and post 
retirement 
benefits
restated
m
inter
company
inventory
transfers
m
untaxed
reserves
1
m
accrued
expenses
m
share
schemes
m
deferred
capital
gains
m
losses and
tax credits
carried
forward
5
m
other
m
total
restated
m
net deferred tax balance at 1 january 2011 329 2320 679 970 1531 548 127 66 271 19 1670
taxation expense 191 248 124 40 36 57 16 5 129 4 240
other comprehensive income – – 146 – – – 9 – – 4 141
disposal of subsidiary undertaking
2
9 41 4 3 – 1 – – 5 – 37
exchange 3 1 6 8 34 21 – – 4 2 31
net deferred tax balance at 31 december 2011 132 2032 691 999 1533 625 102 61 133 13 1221
taxation expense 84 43 105 83 333 30 69 5 180 29 301
other comprehensive income – – 56 – – – 10 – – 5 61
additions through business combinations
3
– 527 – – – 2 30 – 98 – 397
exchange 21 17 23 5 84 3 4 3 – 3 87
net deferred tax balance at 31 december 2012 69 2619 553 921 1284 600 57 59 411 24 1465
taxation expense 73 368 26 154 183 142 13 8 81 12 702
other comprehensive income – – 90 – – – 10 – – 17 97
additions through business combinations
4
– 812 – – – – 5 – 81 – 726
exchange 2 3 21 31 13 7 – 1 – – 36
net deferred tax balance at 31 december 2013 2 3066 510 736 1114 735 59 52 573 5 1622
 restatement on adoption of ias 19 2011 as detailed in group accounting policies
1
 untaxed reserves relate to taxable profits where the tax liability is deferred to later periods
2
 the deferred tax adjustment of 37m relates to the astra tech disposal
3
 the deferred tax liability of 397m relates to the acquisition of ardea as detailed in note 22
4
 the deferred tax liability of 726m relates to the acquisition of pearl therapeutics 319m omthera 198m amplimmune 205m and spirogen 4m as detailed in note 22
5
 includes losses and tax credits carried forward which will expire within 13 to 20 years
6
 deferred tax assets relating to rd expenditure previously included within property plant and equipment are now classified in intangible assets to better reflect their nature and the comparatives have 
been restated accordingly 31 december 2012 reclassification 298m 31 december 2011 reclassification 352m
the net deferred tax balance before the offset of balances within countries consists of
property 
plant and 
equipment
1
m
intangible 
assets
1
m
pension 
and post 
retirement 
benefits
m
inter
company
inventory
transfers
m
untaxed
reserves
m
accrued
expenses
m
share
schemes
m
deferred
capital
gains
m
losses and
tax credits
carried
forward
m
other
m
total
1
m
deferred tax assets at 31 december 2011 86 53 699 1027 – 647 102 – 133 32 2779
deferred tax liabilities at 31 december 2011 218 2085 8 28 1533 22 – 61 – 45 4000
net deferred tax balance at 31 december 2011 132 2032 691 999 1533 625 102 61 133 13 1221
deferred tax assets at 31 december 2012 83 44 561 961 – 656 57 – 411 36 2809
deferred tax liabilities at 31 december 2012 152 2663 8 40 1284 56 – 59 – 12 4274
net deferred tax balance at 31 december 2012 69 2619 553 921 1284 600 57 59 411 24 1465
deferred tax assets at 31 december 2013 120 227 518 775 – 771 59 – 573 25 3068
deferred tax liabilities at 31 december 2013 118 3293 8 39 1114 36 – 52 – 30 4690
net deferred tax balance at 31 december 2013 2 3066 510 736 1114 735 59 52 573 5 1622
1
 deferred tax assets relating to rd expenditure previously included within property plant and equipment are now classified in intangible assets to better reflect their nature and the comparatives have 
been restated accordingly 31 december 2012 reclassification 298m 31 december 2011 reclassification 352m
analysed in the statement of financial position after offset of balances within countries as
2013
m
2012
m
2011
m
deferred tax assets 1205 1111 1514
deferred tax liabilities 2827 2576 2735
net deferred tax balance 1622 1465 1221
unrecognised deferred tax assets
deferred tax assets of 214m have not been recognised in respect of deductible temporary differences 2012 120m 2011 169m 
because it is not probable that future taxable profit will be available against which the group can utilise the benefits therefrom
strategic report corporate governance additional information financial statements financial statements  notes to the group financial statements
astrazeneca annual report and form 20f information 2013 146
5 earnings per 025 ordinary share
2013
2012
restated
2011
restated
profit for the year attributable to equity holders m 2556 6240 9917
basic earnings per ordinary share 204 495 729
diluted earnings per ordinary share 204 494 725
weighted average number of ordinary shares in issue for basic earnings millions 1252 1261 1361
dilutive impact of share options outstanding millions 2 3 6
diluted weighted average number of ordinary shares in issue millions 1254 1264 1367
 restatement on adoption of ias 19 2011 as detailed in group accounting policies
the earnings figures used in the calculations above are posttax
6 segment information
astrazeneca is engaged in a single business activity of biopharmaceuticals and the group does not have multiple operating segments 
our biopharmaceuticals business consists of the discovery and development of new products which are then manufactured 
marketed and sold all of these functional activities take place and are managed globally on a highly integrated basis we do not 
manage these individual functional areas separately 
the set established and chaired by the ceo is the vehicle through which he exercises the authority delegated to him from the board 
for the management development and performance of our business we consider that the set is astrazeneca’s chief operating decision 
making body as defined by ifrs 8 the operation of the set is principally driven by the management of the commercial operations rd 
and manufacturing and supply in addition to the ceo cfo the general counsel and the chief compliance officer the set comprises 
nine executive vicepresidents representing imed medimmune global medicines development north america europe international 
gpps operations  information services and human resources  corporate affairs all significant operating decisions are taken by the 
set while members of the set have responsibility for implementation of decisions in their respective areas operating decision making is 
at set level as a whole where necessary these are implemented through crossfunctional subcommittees that consider the groupwide 
impact of a new decision for example product launch decisions would be initially considered by the set and on approval passed to 
an appropriate subteam for implementation the impacts of being able to develop produce deliver and commercialise a wide range of 
pharmaceutical products drive the set decision making process
in assessing performance the set reviews financial information on an integrated basis for the group as a whole substantially in the 
form of and on the same basis as the group’s ifrs financial statements the high upfront cost of discovering and developing new 
products coupled with the relatively insignificant and stable unit cost of production means that there is not the clear link that exists in 
many manufacturing businesses between the revenue generated on an individual product sale and the associated cost and hence 
margin generated on a product consequently the profitability of individual drugs or classes of drugs is not considered a key measure 
of performance for the business and is not monitored by the set
resources are allocated on a groupwide basis according to need in particular capital expenditure inlicensing and rd resources 
are allocated between activities on merit based on overall therapeutic considerations and strategy under the aegis of the group’s early 
stage product committees and a single late stage product committee the group’s acquisitions in the biologics area including 
medimmune have been integrated into the existing management structure of astrazeneca both for allocation of resources and for 
assessment and monitoring of performance purposes as such biologics does not operate as a separate operating segment
geographic areas
the tables below show information by geographic area and for revenue and property plant and equipment material countries the figures 
show the revenue operating profit and profit before tax made by companies located in that areacountry together with segment assets 
segment assets acquired net operating assets and property plant and equipment owned by the same companies export sales and 
the related profit are included in the areacountry where the legal entity resides and from which those sales were made astrazeneca annual report and form 20f information 2013 147
6 segment information continued
revenue
2013
m
2012
m
2011
m
uk
external 1819 1843 1980
intragroup 5041 6939 9901
6860 8782 11881
continental europe
belgium 265 293 343
france 1303 1393 1799
germany 624 763 1121
italy 729 773 951
spain 497 506 688
sweden 404 466 964
others 1830 2003 2363
intragroup 4930 5067 5101
10582 11264 13330
the americas
canada 607 1069 1589
us 10198 11074 13745
others 1177 1326 1452
intragroup 2005 2353 2819
13987 15822 19605
asia africa  australasia
australia 811 1050 1166
japan 2403 2748 2905
china 1836 1511 1261
others 1208 1155 1264
intragroup 52 70 70
6310 6534 6666
continuing operations 37739 42402 51482
intragroup eliminations 12028 14429 17891
revenue 25711 27973 33591
export sales from the uk totalled 6192m for the year ended 31 december 2013 2012 8072m 2011 11056m intragroup pricing 
is determined on an arm’s length basis
operating lossprofit lossprofit before tax
lossprofit from
2013
m
2012
m
2011
m
2013
m
2012
restated
m
2011
restated
m
uk 171 397 2221 467 39 1750
continental europe
1
3055 3539 5210 3016 3502 5184
the americas 591 3705 4813 477 3678 4815
asia africa  australasia 237 507 551 241 505 534
continuing operations 3712 8148 12795 3267 7646 12283
noncurrent assets
2
total assets
2013
m
2012
m
2011
m
2013
m
2012
m
2011
m
uk 4525 2743 2941 16199 12316 15752
continental europe 4102 3673 3785 6924 6796 6811
the americas 24535 25767 20090 29146 30708 26673
asia africa  australasia 832 803 652 3630 3714 3594
continuing operations 33994 32986 27468 55899 53534 52830
assets acquired
3
net operating assets
4
 
2013
m 
2012
m
2011
m
2013
m 
2012
m
2011
m
uk 637 350 414 2400 2519 3361
continental europe 747 379 344 4168 4006 4113
the americas
5
2490 6760 314 21583 22940 18395
asia africa  australasia 236 229 177 2002 2328 2380
continuing operations 4110 7718 1249 30153 31793 28249
 restatement on adoption of ias 19 2011 as detailed in group accounting policies
1
 2011 includes profit on disposal of astra tech see note 22
2
 ‘noncurrent assets’ exclude deferred tax assets and derivative financial instruments
3
 included in ‘assets acquired’ are those assets that are expected to be used during more than one period property plant and equipment goodwill and intangible assets
4
 ‘net operating assets’ exclude shortterm investments cash shortterm borrowings loans derivative financial instruments retirement benefit obligations and nonoperating receivables and 
payables
5
 assets acquired in 2012 include those related to amylin and ardea see notes 9 and 22
strategic report corporate governance additional information financial statements financial statements  notes to the group financial statements
astrazeneca annual report and form 20f information 2013 148
6 segment information continued
property plant and equipment
2013
m 
2012
m
2011
m
uk 1226 1353 1387
sweden 1158 1183 1408
us 2048 2197 2309
rest of the world 1386 1356 1321
continuing operations 5818 6089 6425
geographic markets
the table below shows revenue in each geographic market in which customers are located
2013
m 
2012
m
2011
m
uk 685 668 866
continental europe 6521 7042 8896
the americas 11515 13075 16484
asia africa  australasia 6990 7188 7345
continuing operations 25711 27973 33591
revenue is recognised when the significant risks and rewards of ownership have been transferred to a third party in general this is upon 
delivery of the products to wholesalers transactions with one wholesaler 2012 two 201 1 two individually represented greater than 10 of 
total revenue the value of these transactions recorded as revenue was 3 166m 2012 3517m and 3 155m 201 1 4298m and 4 170m
7 property plant and equipment
land and
buildings
m
plant and
equipment
m
assets in course
of construction
m
total property
plant and
equipment
m
cost
at 1 january 2011 5699 9293 591 15583
capital expenditure 18 168 621 807
transfer of assets into use 261 294 555 –
disposals and other movements 62 738 10 686
reduction on disposal of subsidiaries 87 170 15 272
exchange adjustments 42 68 12 122
at 31 december 2011 5911 8779 620 15310
capital expenditure 37 229 502 768
additions through business combinations – 4 – 4
transfer of assets into use 123 391 514 –
disposals and other movements 370 1050 49 1469
exchange adjustments 149 292 17 458
at 31 december 2012 5850 8645 576 15071
capital expenditure 21 222 565 808
additions through business combinations 1 3 4 8
transfer of assets into use 67 295 362 –
disposals and other movements 275 773 7 1055
exchange adjustments 19 61 5 75
at 31 december 2013 5683 8453 771 14907
depreciation
at 1 january 2011 2274 6352 – 8626
charge for year 271 815 – 1086
disposals and other movements 62 542 – 604
reduction on disposal of subsidiaries 22 99 – 121
exchange adjustments 26 76 – 102
at 31 december 2011 2435 6450 – 8885
charge for year 280 743 – 1023
disposals and other movements 129 1116 – 1245
exchange adjustments 82 237 – 319
at 31 december 2012 2668 6314 – 8982
charge for year 331 575 – 906
impairment 7 94 – 101
disposals and other movements 73 900 – 973
exchange adjustments 19 54 – 73
at 31 december 2013 2952 6137 – 9089
net book value
at 31 december 2011 3476 2329 620 6425
at 31 december 2012 3182 2331 576 6089
at 31 december 2013 2731 2316 771 5818 astrazeneca annual report and form 20f information 2013 149
7 property plant and equipment continued
impairment charges in 2013 are attributable to strategy changes affecting manufacturing operations in china and the impact of 
restructuring our site footprint in the us
there were no impairment charges in 2012 or 2011
2013
m 
2012
m
2011
m
the net book value of land and buildings comprised
freeholds 2656 3122 3449
leaseholds 75 60 27
included within plant and equipment are information technology assets held under finance leases with a net book value of 86m 
2012 79m 2011 nil
8 goodwill
2013
m 
2012
m
2011
m
cost
at 1 january 10223 10186 10206
additions through business combinations 77 30 –
exchange and other adjustments 7 7 20
at 31 december 10307 10223 10186
amortisation and impairment losses
at 1 january 325 324 335
exchange and other adjustments 1 1 11
at 31 december 326 325 324
net book value at 31 december 9981 9898 9862
for the purpose of impairment testing of goodwill the group is regarded as a single cashgenerating unit
the recoverable amount is based on value in use using discounted riskadjusted projections of the group’s pretax cash flows over 10 
years which is considered by the board as a reasonable period given the long development and lifecycle of a medicine the projections 
include assumptions about product launches competition from rival products and pricing policy as well as the possibility of generics 
entering the market in setting these assumptions we consider our past experience external sources of information including information 
on expected increases and ageing of the populations in our established markets and the expanding patient population in newer markets 
our knowledge of competitor activity and our assessment of future changes in the pharmaceutical industry the 10 year period is covered 
by internal budgets and forecasts given that internal budgets and forecasts are prepared for all projections no general growth rates 
are used to extrapolate internal budgets and forecasts for the purposes of determining value in use no terminal value is included as 
these cash flows are more than sufficient to establish that an impairment does not exist the methods used to determine recoverable 
amounts have remained consistent with the prior year
in arriving at value in use we disaggregate our projected pretax cash flows into groups reflecting similar risks and tax effects for each 
group of cash flows we use an appropriate discount rate reflecting those risks and tax effects in arriving at the appropriate discount rate 
for each group of cash flows we adjust astrazeneca’s posttax weighted average cost of capital 7 0 for 2013 2012 and 2011 to reflect 
the impact of relevant industry risks the time value of money and tax effects the weighted average pretax discount rate we used was 
approximately 10 2012 10 2011 10
as a further check we compare our market capitalisation to the book value of our net assets and this indicates significant surplus at 
31 december 2013 and 31 december 2012 and 31 december 2011
no goodwill impairment was identified
the group has also performed sensitivity analysis calculations on the projections used and discount rate applied the directors have 
concluded that given the significant headroom that exists and the results of the sensitivity analysis performed there is no significant 
risk that reasonable changes in any key assumptions would cause the carrying value of goodwill to exceed its value in use
strategic report corporate governance additional information financial statements financial statements  notes to the group financial statements
astrazeneca annual report and form 20f information 2013 150
9 intangible assets
product 
marketing and
distribution rights
m
other
intangibles
m
software
development
costs
m
total
m
cost
at 1 january 2011 15804 2335 1399 19538
additions – separately acquired 189 14 239 442
reduction on disposal of subsidiaries – 152 – 152
exchange and other adjustments 94 9 4 107
at 31 december 2011 15899 2188 1634 19721
additions through business combinations 1464 – – 1464
additions – separately acquired 5228 12 212 5452
exchange and other adjustments 271 65 59 265
at 31 december 2012 22862 2135 1905 26902
additions through business combinations 2045 371 – 2416
additions – separately acquired 635 – 166 801
disposals 46 – – 46
exchange and other adjustments 57 7 19 69
at 31 december 2013 25553 2499 2090 30142
amortisation and impairment losses
at 1 january 2011 5088 1425 867 7380
amortisation for year 652 119 140 911
impairment 552 1 – 553
reduction on disposal of subsidiaries – 39 – 39
exchange and other adjustments 46 32 14 64
at 31 december 2011 6246 1474 1021 8741
amortisation for year 1039 95 162 1296
impairment 192 1 6 199
exchange and other adjustments 182 8 28 218
at 31 december 2012 7659 1578 1217 10454
amortisation for year 1498 93 188 1779
impairment 2025 – 57 2082
impairment reversals 285 – – 285
disposals 11 – – 11
exchange and other adjustments 58 11 7 76
at 31 december 2013 10944 1682 1469 14095
net book value 
at 31 december 2011 9653 714 613 10980
at 31 december 2012 15203 557 688 16448
at 31 december 2013 14609 817 621 16047
other intangibles consist mainly of licensing and rights to contractual income streams
amortisation charges are recognised in profit as follows
product 
marketing and
distribution rights
m
other
intangibles
m
software
development
costs
m
total
m
year ended 31 december 2011
cost of sales 129 – – 129
research and development expense – 27 – 27
selling general and administrative costs 523 24 140 687
other operating income and expense – 68 – 68
total 652 119 140 911
year ended 31 december 2012
cost of sales 325 – – 325
research and development expense – 25 – 25
selling general and administrative costs 673 13 162 848
other operating income and expense 41 57 – 98
total 1039 95 162 1296
year ended 31 december 2013
cost of sales 502 – – 502
research and development expense – 30 – 30
selling general and administrative costs 898 4 188 1090
other operating income and expense 98 59 – 157
total 1498 93 188 1779 astrazeneca annual report and form 20f information 2013 151
9 intangible assets continued 
impairment charges are recognised in profit as follows
product 
marketing and
distribution rights
m
other
intangibles
m
software
development
costs
m
total
m
year ended 31 december 2011
research and development expense 548 1 – 549
selling general and administrative costs 4 – – 4
total 552 1 – 553
year ended 31 december 2012
research and development expense 185 1 – 186
selling general and administrative costs 7 – 6 13
total 192 1 6 199
year ended 31 december 2013
research and development expense 335 – – 335
selling general and administrative costs 1690 – 57 1747
total 2025 – 57 2082
the impairment reversal of 285m booked in 2013 was recorded in research and development expense
impairment charges and reversals
in 2013 astrazeneca commenced enrollment of the first patient in the first of several phase iii clinical programmes for olaparib as a 
result of the initiation of this programme the impairment charge of 285m taken in 2011 as detailed below was reversed and the full 
historic carrying value of the asset restored to our balance sheet there are several indications currently under development for olaparib 
and at the date of the reversal of the impairment the recoverable value of the intangible asset relating to olaparib determined using 
value in use calculations as detailed below was estimated to be at least 650m above its carrying value the 2013 impairment charge 
of product marketing and distribution rights includes a charge of 1758m against the intangible asset for bydureon acquired as part of 
the 2012 collaboration with bms on amylin products as detailed below following revised estimates for future sales performance as part 
of the annual budgeting process that are below astrazeneca’s commercial expectations at that time of entering into the collaboration 
impairment charges also include 136m following astrazeneca’s decision not to proceed with regulatory filings for fostamatinib
the 2012 impairment of product marketing and distribution rights includes a charge of 50m following the decision by astrazeneca not 
to pursue a regulatory filing for tc5214 based on the final results of phase iii efficacy and tolerability studies of the compound as an 
adjunct therapy to an antidepressant in patients with major depressive disorder who do not respond adequately to initial antidepressant 
treatment the remaining 149m charge relates to the termination of other development projects during the year 
the 2011 impairment of product marketing and distribution rights includes a full impairment charge of 285m following the termination 
of development of the investigational compound olaparib for the maintenance treatment of serous ovarian cancer the 201 1 impairment of 
product marketing and distribution rights also includes an impairment of 150m reflecting a lower probability of success assessment 
for tc5214 based on the results of the first two of four phase iii efficacy and tolerability studies the remaining 117m charge relates 
to the termination of other development projects during the year
the write downs in value of intangible assets other than those arising from termination of rd activities were determined based  
on value in use calculations using discounted riskadjusted projections of the products’ expected posttax cash flows over a period 
reflecting the patentprotected lives of the individual products the full period of projections is covered by internal budgets and 
forecasts by their nature the value in use calculations are sensitive to the underlying methods assumptions and estimates 
consequently there is a significant risk that partial impairments recognised in this way may be subject to adjustments in future periods 
those adjustments may be material in arriving at the appropriate discount rate to use for each product we adjust astrazeneca’s 
posttax weighted average cost of capital 70 for 2013 2012 and 2011 to reflect the impact of risks and tax effects specific to the 
individual products the weighted average pretax discount rate we used was approximately 13 2012 14 2011 14
strategic report corporate governance additional information financial statements financial statements  notes to the group financial statements
astrazeneca annual report and form 20f information 2013 152
9 intangible assets continued 
significant assets
description
carrying value
m
remaining amortisation 
period
advance payment
1
product marketing and distribution rights 329 5 years
partial retirement
1
product marketing and distribution rights 548 114 years
first option
1
product marketing and distribution rights 1339 1317 years
second option
1
product marketing and distribution rights 961 23 years
intangible assets arising from the acquisition of cat
5
product marketing and distribution rights 216 2 and 7 years
rsv franchise assets arising from the acquisition of medimmune product marketing and distribution rights 3337 12 years
intangible assets arising from the acquisition of medimmune licensing and contractual income 341 56 years
intangible assets arising from the acquisition of medimmune product marketing and distribution rights 513 18 years
intangible assets arising from the collaboration with bms
2
product marketing and distribution rights 500 910 years
bydureon weekly asset arising from the amylin collaboration with bms
3
product marketing and distribution rights 761 17 years
other intangible assets arising from the amylin collaboration with bms
3
product marketing and distribution rights 559 917 years
intangible assets arising from the acquisition of novexel
4
product marketing and distribution rights 313 not amortised
intangible assets arising from the acquisition of ardea
4
product marketing and distribution rights 1464 not amortised
intangible assets arising from the acquisition of pearl therapeutics
4
product marketing and distribution rights 985 not amortised
intangible assets arising from the acquisition of omthera
4
product marketing and distribution rights 526 not amortised
intangible assets arising from the acquisition of amplimmune
4
product marketing and distribution rights 534 not amortised
intangible assets arising from the acquisition of spirogen research technology rights 362 10 years
1
 these assets are associated with the restructuring of the joint venture with merck
2
 these assets arise from the collaboration agreement with bms for onglyza and forxiga
3
 these assets arise from the collaboration agreement with bms for the related amylin products
4
 assets in development are not amortised but are tested annually for impairment
5
 cambridge antibody technology group plc
collaboration with bms on amylin products
on 8 august 2012 bms completed its acquisition of amylin on that date astrazeneca and bms entered into collaboration arrangements 
based substantially on the framework of the existing diabetes alliance regarding the development and commercialisation of amylin’s 
portfolio of products under the terms of the collaboration the companies jointly undertake the global selling and marketing activities in 
relation to the collaboration products bms undertook all manufacturing activities with astrazeneca receiving collaboration product at 
cost profits and losses arising from the collaboration were shared equally
the total consideration for astrazeneca’s participation in the collaboration was 37bn astrazeneca’s payment to bms for its participation 
in the collaboration primarily resulted in the purchase of intangible assets valued at 3358m related to the collaboration products 
byetta exenatide injection and bydureon exenatide extendedrelease for injectable suspensionexenatide 2mg powder and solvent for 
prolonged release suspension for injection that are approved for use in both the us and europe symlin pramlintide acetate injection 
that is approved for use in the us and metreleptin a leptin analogue currently under review at the fda for the treatment of diabetes andor 
hypertriglyceridaemia in patients with rare forms of inherited or acquired lipodystrophy in addition a prepayment of 04bn was recognised 
representing payments in advance for collaboration products
astrazeneca accounts for the collaboration as a joint operation and recognises its share of revenue costs assets and liabilities
as detailed in note 28 subsequent to the year end in february 2014 astrazeneca acquired bms’s interests in the diabetes alliance 
including acquiring 100 of the share capital of amylin
arrangements with merck
in 1982 astra set up a joint venture with merck  co inc now merck sharp  dohme corp a subsidiary of the new merck  co 
inc that resulted from the merger with scheringplough ‘merck’ for the purposes of selling marketing and distributing certain astra 
products in the us in 1998 this joint venture was restructured the ‘restructuring’ under the agreements relating to the restructuring 
the ‘agreements’ a us limited partnership the ‘partnership’ was formed in which merck is the limited partner and astrazeneca is 
the general partner and astrazeneca obtained control of the joint venture’s business subject to certain limited partner and other rights 
held by merck and its affiliates these rights provide merck with safeguards over the activities of the partnership and place limitations 
on astrazeneca’s commercial freedom to operate the agreements provide in part for 
  annual contingent payments 
  termination arrangements which cause merck to relinquish its interests in astrazeneca’s products and activities in stages some of 
which are mandatory and others optional 
the termination arrangements and payments include 
  the advance payment 
  the partial retirement 
  the trueup 
  the loan note receivable 
  the first option 
  the second option  astrazeneca annual report and form 20f information 2013 153
9 intangible assets continued 
astrazeneca considers that the termination arrangements described above represent the acquisition in stages of merck’s interests in 
the partnership and agreement products including merck’s rights to contingent payments once all payments are made astrazeneca 
will have unencumbered discretion in its operations in the us market astrazeneca anticipates that the benefits that accrue under all of 
the termination arrangements arise from 
  the substantial freedom over products acquired or discovered after the merger of astra and zeneca in 1999 and 
  enhanced contributions from and substantial freedom over those products that have already been launched for example prilosec 
nexium brilinta pulmicort symbicort rhinocort and atacand and those that are in development 
economic benefits include relief from contingent payments and other cost efficiencies together with the strategic advantages of increased 
freedom to operate 
the intangible assets relating to purchased product rights are subject to impairment testing and would be partially or wholly impaired if 
a product is withdrawn or if activity in any of the affected therapy areas is significantly curtailed 
annual contingent payments
astrazeneca makes ongoing payments to merck based on sales of certain of its products in the us the ‘contingent payments’ on the 
agreement products contingent payments in respect of prilosec and nexium will continue until the second option is exercised and 
consummated as discussed under second option below contingent payments on all other agreement products have ceased as 
discussed under first option below
advance payment 
the merger between astra and zeneca in 1999 triggered the first step in the termination arrangements merck relinquished all rights 
including contingent payments on future sales to potential astra products with no existing or pending us patents at the time of the merger 
as a result astrazeneca now has rights to such products and is relieved of potential obligations to merck and restrictions in respect of 
those products including annual contingent payments affording astrazeneca substantial freedom to exploit the products as it sees fit 
at the time of the merger the advance payment of 967m was made the advance payment has been accounted for as an intangible 
asset and is being amortised over 20 years although the rights obtained apply in perpetuity the period of amortisation of 20 years is 
used to reflect the typical timescale of development and marketing of a product 
partial retirement trueup and loan note receivable 
on 17 march 2008 astrazeneca made a net cash payment to merck of approximately 26bn in connection with the partial retirement 
the trueup and the loan note receivable this payment resulted in astrazeneca acquiring merck’s interests in certain astrazeneca 
products including pulmicort rhinocort symbicort and toprolxl astrazeneca ceasing contingent payments on these products and 
astrazeneca obtaining the ability to exploit these products and other opportunities in the respiratory therapy area intangible assets of 
994m were recognised at the time with the balance of the net payment 1656m representing payments on account for future product 
rights associated with the first option and the second option as detailed below these ‘nonrefundable deposits’ were classified as 
intangible assets 
first option 
on 26 february 2010 astrazeneca exercised the first option payment of 647m to merck was made on 30 april 2010 this payment 
resulted in astrazeneca acquiring merck’s interests in products covered by the first option including entocort atacand plendil and certain 
products in development at the time principally brilinta and lesogaberan development of lesogaberan was subsequently discontinued 
also on 30 april 2010 contingent payments on these products ceased with respect to periods after this date and astrazeneca obtained 
the ability to exploit these products and other opportunities in the cardiovascular and neuroscience therapy areas these rights were valued 
at 1829m and were recognised as intangible assets from 26 february 2010 1182m having been transferred from nonrefundable 
deposits to supplement the payment of 647m to merck of these rights 689m was allocated to contingent payment relief and 1140m 
to intangible assets reflecting the ability to fully exploit the products in the cardiovascular and neuroscience therapy areas the remaining 
nonrefundable deposits of 474m relate to benefits that would be secured upon astrazeneca exercising the second option
second option
the agreements provided that astrazeneca may exercise a second option to purchase merck’s interests in the merck affiliates that hold 
the limited partner and other rights referred to above exercise of the second option would result in the repurchase by astrazeneca of 
merck’s interests in prilosec and nexium in the us this option was exercisable by astrazeneca in may to october of 2012 or in 2017  
or if combined annual sales of the two products fell below a minimum amount 
on 26 june 2012 astrazeneca and merck agreed to amend certain provisions of the agreements with respect to the second option 
the principal areas covered by the amendments are a change in the timing for astrazeneca to exercise the second option and 
agreement on the valuation methodology for setting certain aspects of the option exercise price under the amended agreements 
merck has granted to astrazeneca a new second option exercisable by astrazeneca between 1 march 2014 and 30 april 2014 with 
closing on 30 june 2014 options exercisable in 2017 or if combined annual sales fall below a minimum amount also remain available 
to astrazeneca in addition to this revised timing for the second option astrazeneca and merck have also reached agreement on the 
valuation methodology for setting certain components of the option exercise price for a 2014 exercise in lieu of third party appraisals 
the valuation for a 2014 exercise is now a fixed sum of 327m based on a shared view by astrazeneca and merck of the forecasts for 
sales of nexium and prilosec in the us market the agreed amount that would be payable on 30 june 2014 is subject to a trueup in 
2018 that replaces a shared forecast with actual sales for the period from closing in 2014 to june 2018 in addition the exercise price 
for the second option also includes a multiple of ten times merck’s average 1 annual profit allocation in the partnership for the three 
years prior to exercise astrazeneca currently expects this amount to be around 80m the component of the exercise price of the 
second option that includes the net present value of up to 5 of future us sales of vimovo with the precise amount dependent on 
an annual sales threshold that has not yet been achieved and the timing of the option exercise will continue
strategic report corporate governance additional information financial statements financial statements  notes to the group financial statements
astrazeneca annual report and form 20f information 2013 154
9 intangible assets continued 
astrazeneca believes that the amendments provide a greater degree of certainty to the valuation of the second option that is preferable 
to the previous arrangements and barring unforeseen circumstances astrazeneca now intends to exercise the second option in 2014
under the amendments if astrazeneca exercises in 2014 merck’s existing rights to manufacture nexium and prilosec would cease upon 
closing in connection with the amendments merck also granted astrazeneca flexibility to exploit certain commercial opportunities with 
respect to nexium 
astrazeneca now considers that exercise of the second option is virtually certain this judgement is supported by management’s view 
that astrazeneca is fully committed to exercising the second option in 2014 barring unforeseen circumstances external announcements 
of that intention constructively oblige astrazeneca to exercise in 2014 barring unforeseen circumstances and the second option price 
is highly favourable giving economic compulsion for astrazeneca to exercise in 2014 as such astrazeneca has applied an accounting 
treatment to reflect the second option as if the date of exercise were 26 june 2012 the date of amendment of the agreements resulting 
in liabilities to merck of approximately 15bn 11bn of which will be paid by way of monthly contingent payments between 1 july 2012 
and 30 june 2014 and the balance as a lump sum on 30 june 2014 and a corresponding increase to intangible assets from that date 
these intangible assets and the 474m from the first option detailed above in aggregate reflect the value of the ability to exploit 
opportunities in the gastrointestinal therapy area and relief from contingent payments
10 other investments
2013
m 
2012
m
2011
m
noncurrent investments
equity securities available for sale 281 199 201
total 281 199 201
current investments
equity securities and bonds available for sale 735 748 296
equity securities held for trading 46 29 25
fixed deposits 15 46 3927
total 796 823 4248
the equity securities and bonds available for sale in current investments of 735m 2012 748m 2011 296m are held in an escrow 
account further details of this escrow account are included in note 18
impairment charges of 22m in respect of available for sale securities are included in other operating income and expense in profit 
2012 2m 2011 3m
equity securities and bonds available for sale and equity securities held for trading are held on the consolidated statement of financial 
position at fair value the fair value of listed investments is based on year end quoted market prices for unlisted investments cost is 
considered to approximate to fair value as detailed below fixed deposits are held at amortised cost with carrying value being a reasonable 
approximation of fair value given their shortterm nature
none of the financial assets or liabilities have been reclassified in the year
fair value hierarchy
the table below analyses financial instruments contained within other investments and carried at fair value by valuation method 
the different levels have been defined as follows
  level 1 quoted prices unadjusted in active markets for identical assets or liabilities
  level 2  inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly 
ie as prices or indirectly ie derived from prices
  level 3 inputs for the asset or liability that are not based on observable market data unobservable inputs
level 1
m
level 2
m
level 3
m
total
m
2011
equity securities and bonds available for sale 338 – 159 497
equity securities held for trading 25 – – 25
total 363 – 159 522
2012 
equity securities and bonds available for sale 809 – 138 947
equity securities held for trading 29 – – 29
total 838 – 138 976
2013 
equity securities and bonds available for sale 807 – 209 1016
equity securities held for trading 46 – – 46
total 853 – 209 1062 astrazeneca annual report and form 20f information 2013 155
10 other investments continued
equity securities available for sale that are analysed at level 3 represent investments in private biotech companies in the absence of 
specific market data these unlisted investments are held at cost adjusted as necessary for impairments which approximates to fair 
value movements in level 3 investments are detailed below
2013
m 
2012
m
2011
m
at 1 january 138 159 167
additions 70 17 8
transfers inout – 25 –
disposals 8 20 28
impairments and exchange adjustments 9 7 12
at 31 december 209 138 159
assets are transferred in or out of level 3 on the date of the event or change in circumstances that caused the transfer
11 inventories
2013
m 
2012
m
2011
m
raw materials and consumables 570 620 588
inventories in process 659 876 645
finished goods and goods for resale 680 565 619
inventories 1909 2061 1852
the group recognised 2981m 2012 3019m 2011 3447m of inventories as an expense within cost of sales during the year
inventory writeoffs in the year amounted to 91m 2012 120m 2011 51m
12 trade and other receivables
noncurrent other receivables
noncurrent other receivables of 1867m 2012 352m 2011 nil include a prepayment of 1276m 2012 nil 2011 nil which 
represents the longterm element of minimum contractual royalties payable to shionogi under the global licence agreement for crestor 
which was renegotiated in december 2013 the resulting modified royalty structure which now includes fixed minimum and maximum 
payments in years until 2020 has resulted in the company recognising liabilities and corresponding prepayments for the discounted 
value of total minimum payments the current portion of the prepayment is 350m and is reported in amounts due within one year 
noncurrent other receivables also include prepayments in relation to our joint operation with bms and our research collaboration with 
moderna therapeutics
current trade and other receivables
2013
m 
2012
m
2011
m
amounts due within one year
trade receivables 5578 5760 6696
less amounts provided for doubtful debts note 23 64 64 66
5514 5696 6630
other receivables 684 750 1172
prepayments and accrued income 1420 923 725
7618 7369 8527
amounts due after more than one year
other receivables 110 85 65
prepayments and accrued income 151 175 162
261 260 227
trade and other receivables 7879 7629 8754
all financial assets included within current trade and other receivables are held on the consolidated statement of financial position at 
amortised costs with carrying value being a reasonable approximation of fair value
13 cash and cash equivalents
2013
m 
2012
m
2011
m
cash at bank and in hand 1094 1304 1488
shortterm deposits 8123 6397 6083
cash and cash equivalents 9217 7701 7571
unsecured bank overdrafts 222 105 137
cash and cash equivalents in the cash flow statement 8995 7596 7434
the group holds 119m 2012 301m 2011 543m of cash and cash equivalents which is required to meet insurance solvency  
capital and security requirements and which as a result is not readily available for the general purposes of the group
cash and cash equivalents are held on the consolidated statement of financial position at amortised cost fair value approximates to 
carrying value
strategic report corporate governance additional information financial statements financial statements  notes to the group financial statements
astrazeneca annual report and form 20f information 2013 156
14 interestbearing loans and borrowings
repayment
dates
2013
m 
2012
m
2011
m
current liabilities
bank overdrafts on demand 222 105 137
finance leases 30 22 –
54 callable bond us dollars 2012 – – 1769
54 callable bond us dollars 2014 766 – –
other loans within one year 770 774 84
total 1788 901 1990
noncurrent liabilities
finance leases 72 62 –
54 callable bond us dollars 2014 – 805 834
5125 noncallable bond euros 2015 1035 990 969
59 callable bond us dollars 2017 1854 1895 1896
195 callable bond us dollars 2019 996 995 –
7 guaranteed debentures us dollars 2023 356 399 387
575 noncallable bond pounds sterling 2031 573 561 536
645 callable bond us dollars 2037 2717 2717 2716
4 callable bond us dollars 2042 985 985 –
total 8588 9409 7338
all loans and borrowings above are unsecured except for finance leases which are secured against the information technology assets 
to which they relate see note 7 
set out below is a comparison by category of carrying values and fair values of all the group’s interestbearing loans and borrowings at 
31 december 2013 31 december 2012 and 31 december 2011
instruments in a
fair value hedge
relationship
1
m
instruments
designated
at fair value
2
m
amortised
cost
3
m
total
carrying
value
m
fair
value
m
2011
overdrafts – – 137 137 137
loans due within one year 770 – 1083 1853 1891
loans due after more than one year 899 1221 5218 7338 8765
total at 31 december 2011 1669 1221 6438 9328 10793
2012
overdrafts – – 105 105 105
finance leases due within one year – – 22 22 22
finance leases due after more than one year – – 62 62 62
loans due within one year – – 774 774 774
loans due after more than one year 900 1204 7243 9347 10897
total at 31 december 2012 900 1204 8206 10310 11860
2013
overdrafts – – 222 222 222
finance leases due within one year – – 30 30 30
finance leases due after more than one year – – 72 72 72
loans due within one year – 766 770 1536 1536
loans due after more than one year 856 356 7304 8516 9296
total at 31 december 2013 856 1122 8398 10376 11156
1
 instruments designated as hedged items in fair value hedge relationships with respect to interest rate risk include a designated portion of the us dollars 59 callable bond repayable in 2017
2
 instruments designated at fair value through profit or loss include the us dollar 54 callable bond repayable in 2014 and the us dollar 7 guaranteed debentures repayable in 2023
3
 included within borrowings held at amortised cost are amounts designated as hedges of net investments in foreign operations of 1608m 2012 1551m 2011 1505m held at amortised cost 
the fair value of these borrowings was 1769m at 31 december 2013 2012 1808m 2011 1752m
the fair value of fixedrate publicly traded debt is based on year end quoted market prices the fair value of floating rate debt is nominal 
value as mark to market differences would be minimal given the frequency of resets the carrying value of loans designated at fair value 
through profit or loss is the fair value this falls within the level 1 valuation method as defined in note 10 for loans designated in a fair 
value hedge relationship carrying value is initially measured at fair value and remeasured for fair value changes in respect of the hedged 
risk at each reporting date all other loans are held at amortised cost fair values as disclosed in the table above are all determined using 
the level 1 valuation method as defined in note 10 with the exception of overdrafts and finance leases where fair value approximates to 
carrying values astrazeneca annual report and form 20f information 2013 157
14 interestbearing loans and borrowings continued
a gain of 5m was made during the year on the fair value of bonds designated at fair value through profit or loss due to increased credit 
risk a gain of 39m has been made on these bonds since designation due to increased credit risk changes in credit risk had no material 
effect on any other financial assets and liabilities recognised at fair value in the group’s financial statements the change in fair value 
attributable to changes in credit risk is calculated as the change in fair value not attributable to market risk the amount payable at maturity 
on bonds designated at fair value through profit or loss is 1037m
the interest rates used to discount future cash flows for fair value adjustments where applicable are based on market swap curves at 
the reporting date and were as follows
2013 2012 2011
loans and borrowings 03 to 32 06 to 20 09 to 23
15 derivative financial instruments
derivative financial instruments consist of interest rate swaps included in instruments designated at fair value if related to debt designated 
at fair value or instruments in a fair value hedge relationship if formally designated as in a fair value hedge relationship crosscurrency swaps 
included in instruments designated in net investment hedges and forward foreign exchange contracts included below in other derivatives
noncurrent 
assets
m
current 
assets
m
current 
liabilities
m
noncurrent
liabilities
m
total
m
designated in a fair value hedge 153 20 – – 173
related to instruments designated at fair value through profit or loss 189 – – – 189
other derivatives – 5 9 – 4
31 december 2011 342 25 9 – 358
noncurrent 
assets
m
current 
assets
m
current 
liabilities
m
noncurrent
liabilities
m
total
m
designated in a fair value hedge 151 – – – 151
related to instruments designated at fair value through profit or loss 162 – – – 162
designated as a net investment hedge 76 – – – 76
other derivatives – 31 3 – 28
31 december 2012 389 31 3 – 417
noncurrent 
assets
m
current
assets
m
current
liabilities
m
noncurrent
liabilities
m
total
m
designated in a fair value hedge 108 – – – 108
related to instruments designated at fair value through profit or loss 69 16 – – 85
designated as a net investment hedge 188 – – 1 187
other derivatives – 24 2 – 22
31 december 2013 365 40 2 1 402
all derivatives are held at fair value and fall within level 2 of the fair value hierarchy as defined in note 10 none of the derivatives have 
been reclassified in the year
the fair value of interest rate swaps and crosscurrency swaps is estimated using appropriate zero coupon curve valuation techniques 
to discount future contractual cash flows based on rates at current year end
the fair value of forward foreign exchange contracts is estimated by discounting the future contractual cash flows using appropriate yield 
curves based on market forward foreign exchange rates at the year end the majority of forward foreign exchange contracts for existing 
transactions had maturities of less than one month from year end 
the interest rates used to discount future cash flows for fair value adjustments where applicable are based on market swap curves at 
the reporting date and were as follows
2013 2012 2011
derivatives 03 to 32 06 to 20 09 to 23
strategic report corporate governance additional information financial statements financial statements  notes to the group financial statements
astrazeneca annual report and form 20f information 2013 158
16 trade and other payables
2013
m
2012
m
2011
m
current liabilities
trade payables 2499 2449 2155
value added and payroll taxes and social security 207 231 343
rebates and chargebacks 2853 2486 3285
accruals 3606 3200 2474
other payables 1197 855 718
total 10362 9221 8975
noncurrent liabilities
accruals 126 710 113
other payables 2226 291 272
total 2352 1001 385
with the exception of a payable of 514m 2012 nil 2011 nil held within other payables that arose on business combinations  
see note 22 and which is held at fair value within level 3 of the fair value hierarchy as defined in note 10 all other financial liabilities 
are held on the consolidated statement of financial position at amortised cost with carrying value being a reasonable approximation  
of fair value movements on level 3 financial liabilities are detailed below
2013
m
2012
m
2011
m
at 1 january – – 50
additions arising on business combinations 532 – –
settlements – – 50
revaluations 18 – –
at 31 december 514 – –
17 provisions for liabilities and charges
severance
m
environmental
m
employee 
benefits
m
legal
m
other 
provisions
m
total
m
at 1 january 2011 659 119 127 562 471 1938
charge for year 450 5 16 135 110 716
cash paid 377 32 17 153 78 657
reversals 55 – – – 85 140
exchange and other movements 13 – 16 4 6 5
at 31 december 2011 664 92 142 540 424 1862
charge for year 873 22 19 90 92 1096
cash paid 853 27 20 513 63 1476
reversals 65 – – 18 91 174
exchange and other movements 18 1 7 1 9 36
at 31 december 2012 637 88 148 100 371 1344
charge for year 652 27 20 23 49 771
cash paid 532 28 19 78 24 681
reversals 20 – – 5 78 103
exchange and other movements 34 – 3 19 2 58
at 31 december 2013 771 87 152 59 320 1389
2013
m
2012
m
2011
m
due within one year 823 916 1388
due after more than one year 566 428 474
total 1389 1344 1862
astrazeneca is undergoing a global restructuring initiative which involves rationalisation of the global supply chain the sales and 
marketing organisation it and business support infrastructure and rd employee costs in connection with the initiatives are recognised 
in severance provisions
details of the environmental and legal provisions are provided in note 25
employee benefit provisions include the deferred bonus plan further details are included in note 24
other provisions comprise amounts relating to specific contractual or constructive obligations and disputes
no provision has been released or applied for any purpose other than that for which it was established astrazeneca annual report and form 20f information 2013 159
18 postretirement benefits
pensions
background
the company and most of its subsidiaries offer retirement plans which cover the majority of employees in the group many of these plans 
are ‘defined contribution’ where astrazeneca’s contribution and resulting charge is fixed at a set level or is a set percentage of employees’ 
pay however several plans mainly in the uk the us sweden and germany are ‘defined benefit’ where benefits are based on employees’ 
length of service and average final salary typically averaged over one three or five years the major defined benefit plans apart from the 
collectively bargained swedish plan which is still open to employees born before 1979 have been closed to new entrants since 2000 
during 2010 following consultation with its uk employees’ representatives astrazeneca introduced a freeze on pensionable pay at 
30 june 2010 levels for defined benefit members of the uk pension fund
the major defined benefit plans are funded through legally separate fiduciaryadministered funds the cash funding of the plans which 
may from time to time involve special payments is designed in consultation with independent qualified actuaries to ensure that the assets 
together with future contributions should be sufficient to meet future obligations the funding is monitored rigorously by astrazeneca 
and appropriate fiduciaries specifically with reference to astrazeneca’s credit rating market capitalisation cash flows and the solvency 
of the relevant pension scheme
financing principles
97 of the group’s defined benefit obligations at 31 december 2013 are in schemes within the uk the us sweden or germany 
in these countries the pension obligations are funded with reference to the following financing principles
  the group has a fundamental belief in funding the benefits it promises to employees
  the group considers its pension arrangements in the context of its broader capital structure in general it does not believe in committing 
excessive capital for funding while it has better uses of capital within the business nor does it wish to generate surpluses
  the pension funds are not part of the group’s core business the group believes in taking some rewarded risks with the investments 
underlying the funding subject to a medium to longterm plan to reduce those risks if opportunities arise
  the group recognises that deciding to hold certain investments may cause volatility in the funding position the group would not wish 
to amend its contribution level for relatively small deviations from its preferred funding level because it is expected that there will be 
shortterm volatility but it is prepared to react appropriately to more significant deviations 
  in the event that local regulations require an additional level of financing the group would consider the use of alternative methods of 
providing this that do not require immediate cash funding but help mitigate exposure of the pension arrangement to the credit risk of 
the group
these principles are appropriate to astrazeneca’s business at the present date should circumstances change they may require review
astrazeneca has developed a funding framework to implement these principles this determines the cash contributions payable to the 
pension funds but does not affect the ias 19 2011 liabilities to reduce the risk of committing excess capital to pension funds liability 
valuations are based on the expected return on the actual pension assets rather than a corporate bond yield at present this puts a 
different lower value on the liabilities than ias 19 2011
uk
with regard to the group’s uk defined benefit fund the above principles are modified in light of the uk regulatory requirements summarised 
below and resulting discussions with the pension fund trustee 
role of trustees uk
the uk pension fund is managed by a corporate trustee which is legally separate from the company the trustee directors are composed 
of representatives appointed by both the employer and employees and include an independent professional trustee director the 
trustee directors are required by law to act in the interest of all relevant beneficiaries and are responsible in particular for the asset 
investment policy plus the day to day administration of the benefits they also are responsible for jointly agreeing with the employer the 
level of contributions due to the uk pension fund see below
funding requirements uk
uk legislation requires that pension schemes are funded prudently ie to a level in excess of the current expected cost of providing benefits 
the last funding valuation of the astrazeneca pension fund was carried out by a qualified actuary as at 31 march 2010 the latest funding 
valuation of the astrazeneca pension fund as at 31 march 2013 is underway within 15 months of each valuation the trustee and the 
company must agree the contributions required if any to ensure the fund is fully funded over time on a suitable prudent measure 
contributions agreed in this manner constitute a minimum funding requirement
in addition astrazeneca will make contributions to an escrow account which will be held outside of the uk pension fund the escrow 
account assets will be payable to the fund in agreed circumstances for example in the event of astrazeneca and the pension fund 
trustee agreeing on a change to the current longterm investment strategy at 31 december 2013 £446m 735m of escrow fund assets 
are included within other investments see note 10
under the current funding plan contributions of £264m 436m are required to be made towards the deficit no later than 31 january 2015 
in practice it is expected that these contributions will be made by transferring assets from the separate escrow account created for the 
purpose of managing funding of the uk pension fund under this plan the fund is expected to be fully funded by 31 march 2017  however 
this recovery plan is under review as part of the 31 march 2013 valuation
under the agreed funding principles used to set the statutory funding target the key assumptions as at 31 march 2010 were as follows 
longterm uk price inflation set at 38 per annum salary increases at 0 per annum as a result of pensionable pay levels being frozen 
in 2010 pension increases at 355 per annum and investment returns at 59 per annum the resulting valuation of the fund’s liabilities 
on that basis were £3950m 6100m compared to a market value of assets at 31 march 2010 of £3129m 4832m
strategic report corporate governance additional information financial statements financial statements  notes to the group financial statements
astrazeneca annual report and form 20f information 2013 160
18 postretirement benefits continued
under the governing documentation of the uk pension fund any future surplus in the fund would be returnable to astrazeneca by refund 
assuming gradual settlement of the liabilities over the lifetime of the fund as such there are no adjustments required in respect of ifric 14 
‘ias 19 – the limit on a defined benefit asset minimum funding requirements and their interaction’
regulation uk
the uk pensions market is regulated by the pensions regulator whose statutory objectives and regulatory powers are described on 
its website wwwthepensionsregulatorgovuk
rest of group
the ias 19 2011 positions as at 31 december 2013 are shown below for each of the other countries with significant defined benefit 
plans these plans account for 90 of the group’s defined benefit obligations outside of the uk the us and sweden pension funds are 
managed by fiduciary bodies with responsibility for the investment policies of those funds these plans are funded in line with the financing 
principles and contributions paid as prescribed by the funding framework
  the us defined benefits programme was actuarially revalued at 31 december 2013 when plan obligations were 1655m and plan 
assets were 1651m this includes obligations in respect of the nonqualified plan which is largely unfunded
  the swedish defined benefits programme was actuarially revalued at 31 december 2013 when plan obligations were estimated 
to amount to 1719m and plan assets were 1238m
  the german defined benefits programme was actuarially revalued at 31 december 2013 in accordance with practice in germany 
the plan has a low level of funding plan obligations amounted to 361m and plan assets were 23m 
on current bases it is expected that contributions excluding those in respect of past service cost during the year ending 31 december 
2014 to the four main countries will be 285m
postretirement benefits other than pensions
in the us and to a lesser extent in certain other countries astrazeneca’s employment practices include the provision of healthcare and 
life assurance benefits for retired employees as at 31 december 2013 some 3513 retired employees and covered dependants currently 
benefit from these provisions and some 8098 current employees will be eligible on their retirement astrazeneca accrues for the present 
value of such retiree obligations over the working life of the employee in practice these benefits will be funded with reference to the 
financing principles
the cost of postretirement benefits other than pensions for the group in 2013 was 16m 2012 16m 2011 12m plan assets were 
314m and plan obligations were 331m at 31 december 2013 these benefit plans have been included in the disclosure of postretirement 
benefits under ias 19 2011
financial assumptions
qualified independent actuaries have updated the actuarial valuations under ias 19 2011 of the major defined benefit schemes operated 
by the group to 31 december 2013 the assumptions used by the actuaries are chosen from a range of possible actuarial assumptions 
which due to the longterm nature of the schemes may not necessarily be borne out in practice these assumptions were as follows
2013 2012
uk rest of group uk rest of group
inflation assumption 35 22 31 22
rate of increase in salaries –
1
34 –
1
34
rate of increase in pensions in payment 33 11 29 11
discount rate 45 43 45 36
1
 pensionable pay frozen at 30 june 2010 levels following uk fund changes
demographic assumptions
the mortality assumptions are based on countryspecific mortality tables these are compared to actual astrazeneca experience and 
adjusted where sufficient data is available additional allowance for future improvements in life expectancy is included for all major schemes 
where there is credible data to support this continuing trend
the table below illustrates life expectancy assumptions at age 65 for male members retiring in 2013 and members expected to retire  
in 2033 2012 2012 and 2032 respectively
life expectancy assumption for a male member retiring at age 65
country 2013 2033 2012 2032
uk 236 253 231 248
us 202 216 201 215
sweden 205 224 204 224
germany 187 214 186 213 astrazeneca annual report and form 20f information 2013 161
18 postretirement benefits continued
risks associated with the company’s defined benefit pensions
the uk defined benefit plan accounts for 67 of the group’s defined benefit obligations and exposes the company to a number of 
risks the most significant of which are
risk description mitigation
volatile asset 
returns 
the defined benefit obligation dbo is calculated using 
a discount rate set with reference to corporate bond 
yields asset returns that differ from the discount rate 
will create an element of volatility in the solvency ratio 
the uk pension fund holds a significant proportion 
40 of its assets in growth assets such as equities 
which though expected to outperform corporate bonds 
in the long term create volatility and risk in the short 
term the allocation to growth assets is monitored to 
ensure it remains appropriate given the uk pension 
fund’s longterm objectives
the company and trustee have put in place an equity option 
hedging strategy for the uk pension fund to reduce the 
volatility of equity investment returns the hedging strategy 
protects against falls in equity markets of between 95 
and 84 by foregoing upside above 105 returns
the company and trustee have also hedged the uk 
pension fund equity investments against any changes to 
the us dollar the euro and the japanese yen for assets 
denominated in these currencies currently around 16  
of the fund assets are hedged against the us dollar 2 
against the euro and 1 against the japanese yen
changes in 
bond yields 
a decrease in corporate bond yields will increase the 
value placed on the dbo for accounting purposes 
although this will be partially offset by an increase in 
the value of the uk pension fund’s bond holdings
the uk pension fund also holds a substantial proportion of 
its assets 60 as corporate bonds which provide a 
significant hedge against falling bond yields falling yields 
which increase the dbo will also increase the value of the 
bond assets this interest rate hedge is further extended 
by the use of interest rate swaps so that overall the uk 
pension fund assets hedge 42 of the dbo exposure to 
changes in interest rates note that there are some 
differences in the credit quality of bonds held by the uk 
pension fund and the bonds analysed to decide the dbo 
discount rate such that there remains some risk should 
yields on different quality bondswap assets diverge
inflation risk a significant proportion of the dbo is indexed in line 
with price inflation specifically inflation in the uk retail 
price index and higher inflation will lead to higher 
liabilities although in most cases this is capped at an 
annual increase of 5
the uk pension fund holds some inflationlinked assets 
which provide a hedge against higherthanexpected 
inflation increases on the dbo this is augmented by 
inflation swaps such that overall the uk pension fund 
assets hedge 53 of the dbo exposure to changes in 
forward inflation
life expectancy the majority of the uk pension fund’s obligations are 
to provide benefits for the life of the member so increases 
in life expectancy will result in an increase in the liabilities 
the uk pension fund entered into a longevity swap during 
2013 which provides hedging against the longevity risk of 
around 10000 of the pension fund’s current pensioners 
and covers 38bn of the pension fund’s liabilities a one 
year increase in life expectancy will result in 178m increase 
in pension fund assets
other risks
there are a number of other risks of running the uk pension fund including operational risks such as paying out the wrong benefits 
and legislative risks such as the government increasing the burden on pension through new legislation
strategic report corporate governance additional information financial statements financial statements  notes to the group financial statements
astrazeneca annual report and form 20f information 2013 162
18 postretirement benefits continued
postretirement scheme deficit
the assets and obligations of the defined benefit schemes operated by the group at 31 december 2013 as calculated in accordance 
with ias 19 ‘employee benefits’ 2011 are shown below the fair values of the schemes’ assets are not intended to be realised in the 
short term and may be subject to significant change before they are realised the present value of the schemes’ obligations is derived 
from cash flow projections over long periods and is therefore inherently uncertain
2013 2012
uk
m
rest of group
m
total
m
uk
m
rest of group
m
total
m
scheme assets
equity global exc emerging markets 1520 959 2479 1804 1063 2867
equity emerging markets 401 18 419 487 35 522
equity emerging markets no quoted market price 22 – 22 – – –
government bonds global exc emerging markets 1134 330 1464 544 327 871
government bonds emerging markets 3 – 3 3 3 6
investment grade corporate bonds aaabbb global  
exc emerging markets 2888 1537 4425 2873 1314 4187
investment grade corporate bonds aaabbb emerging markets 272 12 284 257 21 278
other corporate bonds global exc emerging markets 23 35 58 22 31 53
other corporate bonds emerging markets – 67 67 – 56 56
other corporate bonds emerging markets no quoted market price 92 – 92 26 – 26
derivatives interest rate contracts 175 7 168 357 – 357
derivatives inflation rate contracts 68 – 68 86 – 86
derivatives foreign exchange contracts 85 1 86 97 10 107
derivatives other 59 – 59 63 – 63
derivatives longevity swap – – – na na na
investment funds private equity funds no quoted market price – 47 47 – 50 50
investment funds hedge funds 305 95 400 269 93 362
investment funds hedge funds no quoted market price 18 – 18 21 – 21
cash and cash equivalents 3 144 147 168 130 298
others 71 10 81 71 10 81
total fair value of scheme assets
1
7021 3248 10269 6850 3143 9993
scheme obligations
present value of scheme obligations in respect of
active membership 998 1645 2643 1286 1989 3275
deferred membership 2290 886 3176 1615 880 2495
pensioners 5115 1596 6711 4839 1655 6494
total value of scheme obligations 8403 4127 12530 7740 4524 12264
deficit in the scheme as recognised  
in the statement of financial position 1382 879 2261 890 1381 2271
1
 included in scheme assets is nil 2012 nil of the company’s own assets
fair value of scheme assets
2013 2012
uk
m
rest of group
m
total
m
uk
m
rest of group
m
total
m
at beginning of year 6850 3143 9993 5688 2831 8519
interest income on scheme assets 289 114 403 298 116 414
expenses 4 1 5 5 – 5
actuarial lossesgains 119 62 57 319 235 554
settlements – – – – 61 61
exchange adjustments 131 3 128 289 26 315
employer contributions 177 192 369 584 262 846
participant contributions 6 – 6 8 – 8
benefits paid 309 259 568 331 266 597
scheme assets’ fair value at end of year 7021 3248 10269 6850 3143 9993
the actual return on the plan assets was a gain of 346m 2012 gain of 968m astrazeneca annual report and form 20f information 2013 163
18 postretirement benefits continued
movement in postretirement scheme obligations
2013 2012
uk
m
rest of group
m
total
m
uk
m
rest of group
m
total
m
present value of obligation in scheme at beginning of year 7740 4524 12264 7042 4157 11199
current service cost 32 104 136 36 108 144
past service cost 42 26 68 77 30 107
participant contributions 6 – 6 8 – 8
benefits paid 309 259 568 331 266 597
interest expense on postretirement scheme obligations 326 156 482 343 164 507
actuarial lossesgains 373 438 65 224 343 567
settlements – – – – 91 91
exchange adjustments 193 14 207 341 79 420
present value of obligations in scheme at end of year 8403 4127 12530 7740 4524 12264
the obligations arise from the following plans
2013 2012
uk
m
rest of group
m
total
m
uk
m
rest of group
m
total
m
funded – pension schemes 8376 3302 11678 7709 3633 11342
funded – postretirement healthcare – 293 293 – 328 328
unfunded – pension schemes – 521 521 – 548 548
unfunded – postretirement healthcare 27 11 38 31 15 46
total 8403 4127 12530 7740 4524 12264
the weighted average duration of the postretirement scheme obligations in the uk is 17 years and 14 years in the rest of group
consolidated statement of comprehensive income disclosures
the amounts that have been charged to the consolidated statement of comprehensive income in respect of defined benefit schemes 
for the year ended 31 december 2013 are set out below
2013 2012
uk
m
rest of group
m
total
m
uk
m
rest of group
m
total
m
operating profit
current service cost 32 104 136 36 108 144
past service cost 42 26 68 77 30 107
settlements – – – – 30 30
expenses 4 1 5 5 – 5
total charge to operating profit 78 131 209 118 108 226
finance expense
interest income on scheme assets 289 114 403 298 116 414
interest expense on postretirement scheme obligations 326 156 482 343 164 507
net interest on postemployment defined benefit plan liabilities 37 42 79 45 48 93
charge before taxation 115 173 288 163 156 319
other comprehensive income
difference between the actual return and the expected return on 
the postretirement scheme assets 119 62 57 319 235 554
experience losses arising on the postretirement scheme obligations 11 31 20 12 147 159
changes in financial assumptions underlying the present value 
of the postretirement scheme obligations 493 407 86 212 196 408
changes in demographic assumptions 131 – 131 – – –
remeasurement of the defined benefit liability 492 500 8 95 108 13
included in total assets and obligations for the uk is 480m 2012 427m in respect of members’ defined contribution sections of the 
scheme group costs in respect of defined contribution schemes during the year were 241m 2012 249m past service cost relates 
predominantly to enhanced pensions on early retirement in the uk and sweden in addition 2012 includes a 25m curtailment credit 
recognised in sweden as a consequence of the södertälje site closure a settlement credit of 30m recognised in the us in 2012 arose 
where a proportion of deferred inactive participants who were not yet eligible for retirement elected to exchange their plan benefit for 
immediate cash lump sums
strategic report corporate governance additional information financial statements financial statements  notes to the group financial statements
astrazeneca annual report and form 20f information 2013 164
18 postretirement benefits continued
rate sensitivities
the following table shows the us dollar effect of a change in the significant actuarial assumptions used to determine the retirement benefits 
obligations in our four main defined benefit pension obligation countries
2013 2012
05 05 05 05
discount rate
uk m 612 677 527 574
us m 97 105 116 124
sweden m 174 190 204 225
germany m 32 37 33 36
total m 915 1009 880 959
2013 2012
05 05 05 05
inflation rate
1
uk m 457 434 433 408
us m 18 17 22 21
sweden m 183 168 211 192
germany m 22 21 22 21
total m 680 640 688 642
2013 2012
05 05 05 05
rate of increase in salaries
uk m – – – –
us m 14 13 17 16
sweden m 72 69 108 103
germany m 2 2 2 2
total m 88 84 127 121
2013 2012
1 year 1 year 1 year 1 year
mortality rate
uk m 271
2
262
3
200 194
us m 23 23 27 30
sweden m 100 95 108 103
germany m 13 12 13 12
total m 407 392 348 339
1
 rate of increase in pensions in payment follows inflation
2
 of the 271m increase 178m is covered by the longevity swap
3
 of the 262m decrease 174m is covered by the longevity swap
the sensitivity to the financial assumptions shown above has been estimated taking into account the approximate duration of the liabilities 
and the overall profile of the plan membership the sensitivity to the life expectancy assumption has been estimated based on the distribution 
of the plan cash flows astrazeneca annual report and form 20f information 2013 165
19 reserves
retained earnings
the cumulative amount of goodwill written off directly to reserves resulting from acquisitions net of disposals amounted to 679m 
2012 685m 2011 680m using year end rates of exchange at 31 december 2013 99341 shares at a cost of 2m have been 
deducted from retained earnings 2012 55555 shares at a cost of 4m 2011 36177 shares at a cost of 2m
there are no significant statutory or contractual restrictions on the distribution of current profits of subsidiaries undistributed profits of 
prior years are in the main permanently employed in the businesses of these companies the undistributed income of astrazeneca 
companies overseas might be liable to overseas taxes andor uk taxation after allowing for double taxation relief if they were to be 
distributed as dividends see note 4
2013
m
2012
m
2011
m
cumulative translation differences included within retained earnings
balance at beginning of year 1901 1760 1798
foreign exchange arising on consolidation 166 106 60
exchange adjustments on goodwill recorded against other reserves 6 5 2
foreign exchange differences on borrowings designated in net investment hedges 58 46 24
fair value movement on derivatives designated in net investment hedges 111 76 –
net exchange movement in retained earnings 119 141 38
balance at end of year 1782 1901 1760
other reserves
the other reserves arose from the cancellation of £1255m of share premium account by the company in 1993 and the redenomination 
of share capital 157m in 1999 the reserves are available for writing off goodwill arising on consolidation and subject to guarantees 
given to preserve creditors at the date of the court order are available for distribution 
20 share capital of the company
allotted calledup and fully paid
2013
m
2012
m
2011
m
issued ordinary shares 025 each 315 312 323
redeemable preference shares £1 each – £50000 – – –
at 31 december 315 312 323
the redeemable preference shares carry limited class voting rights and no dividend rights this class of shares is capable of redemption 
at par at the option of the company on the giving of seven days’ written notice to the registered holder of the shares
the movements in the number of ordinary shares during the year can be summarised as follows
no of shares
2013 2012 2011
at 1 january 1246779548 1292355052 1409023452
issues of shares 10390539 12241784 10739989
repurchase of shares – 57817288 127408389
at 31 december 1257170087 1246779548 1292355052
share repurchases
no ordinary shares were repurchased by the company in 2013 2012 57 8m ordinary shares at an average price of 2879 pence per share 
2011 1274m ordinary shares at an average price of 2932 pence per share repurchased shares were subsequently cancelled
share option schemes
a total of 104m ordinary shares were issued during the year in respect of share option schemes 2012 122m ordinary shares 
2011 107m ordinary shares details of directors’ interests in shares are shown in the directors’ remuneration report from page 102
shares held by subsidiaries
no shares in the company were held by subsidiaries in any year 
21 dividends to shareholders
2013
per share
2012
per share
2011
per share
2013
m
2012
m
2011
m
final 190 195 185 2372 2495 2594
interim 090 090 085 1127 1124 1158
total 280 285 270 3499 3619 3752
the second interim dividend to be confirmed as final is 190 per ordinary share and 2389m in total this will be payable on 
24 march 2014
on payment of the dividends exchange gains of 1m 2012 and 2011 gains of 3m arose these exchange gains are included in note 3
strategic report corporate governance additional information financial statements financial statements  notes to the group financial statements
astrazeneca annual report and form 20f information 2013 166
22 acquisitions and disposals
2013 acquisitions
pearl therapeutics
on 27 june 2013 astrazeneca completed the acquisition of pearl therapeutics pearl therapeutics is based in redwood city california 
and is focused on the development of inhaled small molecule therapeutics for respiratory disease astrazeneca acquired 100 of pearl 
therapeutics’ shares for an upfront consideration of 569m in addition consideration of up to 450m will become payable if specified 
development and regulatory milestones in respect of any triple combination therapies and selected future products that astrazeneca 
develops using pearl therapeutics’ technology platform are achieved salesrelated payments of up to a further 140m will become 
payable if preagreed cumulative sales thresholds are exceeded contingent consideration has been fair valued using decision tree 
analysis with key inputs including the probability of success and consideration of potential delays
goodwill of 44m is underpinned by a number of elements which individually cannot be quantified most significant among these is 
the synergistic benefit generated by acquiring pearl therapeutics’ workforce whose skills and knowhow are critical to the best and 
most efficient completion of the ongoing development programmes
pearl therapeutics’ results have been consolidated into the company’s results from 27 june 2013 for the period from acquisition to  
31 december 2013 pearl therapeutics’ revenues were immaterial in the context of the group’s revenue and its loss after tax was 49m
book value
m
fair value
adjustment
m
fair value
m
noncurrent assets
intangible assets – 985 985 
deferred tax assets – 60 60 
– 1045 1045 
current assets 12 – 12 
current liabilities 4 – 4
noncurrent liabilities
deferred tax liabilities – 379 379
total assets acquired 8 666 674 
goodwill 44 
fair value of total consideration 718 
less fair value of contingent consideration 149
total upfront consideration 569 
less cash and cash equivalents acquired 4
net cash outflow 565 
omthera pharmaceuticals
on 18 july 2013 astrazeneca completed the acquisition of omthera pharmaceuticals inc omthera is a specialty pharmaceutical company 
based in princeton new jersey focused on the development and commercialisation of new therapies for abnormal levels of lipids in the 
blood referred to as dyslipidaemia 
astrazeneca acquired 100 of omthera’s shares for an upfront consideration of 323m with up to 120m in future development and 
approval milestones contingent consideration has been fair valued using decision tree analysis with key inputs including the probability of 
success and consideration of potential delays
omthera’s results have been consolidated into the company’s results from 18 july 2013 for the period from acquisition to  
31 december 2013 omthera’s revenues were immaterial in the context of the group’s revenue and its loss after tax was 10m 
book value 
m
fair value 
adjustment 
m
fair value
m
noncurrent assets
intangible assets – 526 526 
deferred tax assets – 18 18 
– 544 544 
current assets 67 – 67 
current liabilities 10 – 10
noncurrent liabilities
deferred tax liabilities – 216 216
total assets acquired 57 328 385 
goodwill – 
fair value of total consideration 385 
less fair value of contingent consideration 62
total upfront consideration 323 
less cash acquired 63
net cash outflow 260 
in the period since acquisition the fair value of the contingent consideration has been reduced to 44m based on the group’s revised 
view of the likelihood of triggering certain approval milestones astrazeneca annual report and form 20f information 2013 167
22 acquisitions and disposals continued
amplimmune
on 4 october 2013 astrazeneca completed the acquisition of amplimmune a privatelyheld maryland usbased biologics company 
focused on developing novel therapeutics in cancer immunology under the terms of the agreement astrazeneca has acquired 100 
of amplimmune’s shares for an initial consideration of 225m and deferred consideration of up to 275m based on reaching predetermined 
development milestones contingent consideration has been fair valued using decision tree analysis with key inputs including the probability 
of success and consideration of potential delays
the acquisition bolsters astrazeneca’s oncology pipeline by obtaining multiple earlystage assets for its immunemediated cancer therapy 
imtc portfolio including amp514 an antiprogrammed cell death 1 pd1 monoclonal antibody mab other amplimmune assets 
include multiple preclinical molecules targeting the b7 pathways 
goodwill of 33m is underpinned by a number of elements which individually cannot be quantified but include amplimmune’s very 
early programmes of potential interest for oncology immunology and infectious diseases as well as research tools and animal models
amplimmune’s results have been consolidated into the company’s results from 4 october 2013 for the period from acquisition to 
31 december 2013 amplimmune’s revenues were immaterial in the context of the group’s revenue and its loss after tax was 5m 
book value
m
fair value
adjustment
m
fair value
m
noncurrent assets
intangible assets – 534 534 
property plant and equipment 7 – 7
deferred tax assets – 14 14 
7 548 555 
current assets 17 – 17 
current liabilities 8 – 8
noncurrent liabilities
deferred tax liabilities – 219 219
total assets acquired 16 329 345 
goodwill 33 
fair value of total consideration 378 
less fair value of contingent consideration 153
total upfront consideration 225 
less cash and cash equivalents acquired 17
less deferred upfront consideration 75
net cash outflow 133 
spirogen
on 15 october 2013 astrazeneca completed the acquisition of spirogen a privatelyheld biotech company focused on antibody drug 
conjugate technology for use in oncology astrazeneca acquired 100 of spirogen’s shares for an initial consideration of 200m and 
deferred consideration of up to 240m based on reaching predetermined development milestones existing outlicensing agreements 
and associated revenue streams are excluded from this acquisition contingent consideration has been fair valued using decision tree 
analysis with key inputs including the probability of success and consideration of potential delays
astrazeneca has also entered into a collaboration agreement with adc therapeutics to jointly develop two of adc therapeutics’ 
antibodydrug conjugate programmes in preclinical development astrazeneca has also made an equity investment in adc therapeutics 
which has an existing licensing agreement with spirogen
spirogen’s results have been consolidated into the company’s results from 15 october 2013 for the period from acquisition to 
31 december 2013 spirogen’s revenues were immaterial in the context of the group’s revenue and its loss after tax was immaterial 
book value
m
fair value
adjustment
m
fair value
m
noncurrent assets
intangible assets 1 370 371 
property plant and equipment 1 – 1
2 370 372
noncurrent liabilities
deferred tax liabilities – 4 4
total assets acquired 2 366 368 
goodwill – 
fair value of total consideration 368 
less fair value of contingent consideration 168
total upfront consideration 200 
less cash and cash equivalents acquired – 
net cash outflow 200 
strategic report corporate governance additional information financial statements financial statements  notes to the group financial statements
astrazeneca annual report and form 20f information 2013 168
22 acquisitions and disposals continued
acquisition costs arising on acquisitions in 2013 were immaterial
if the 2013 acquisitions had taken effect at the beginning of the reporting period 1 january 2013 on a pro forma basis the revenue of 
the combined group for 2013 would have been unchanged and the profit after tax would have been 2458m this pro forma information 
has been prepared taking into account any amortisation interest costs and related tax effects but does not purport to represent the 
results of the combined group that actually would have occurred had the acquisition taken place on 1 january 2013 and should not be 
taken to be representative of future results
2012 acquisitions
ardea
on 19 june 2012 astrazeneca completed the acquisition of ardea ardea is a us san diego california based biotechnology company 
focused on the development of small molecule therapeutics for the treatment of serious diseases astrazeneca acquired 100 of ardea’s 
shares for cash consideration of 1268m the acquisition strengthens our research and development capabilities in the respiratory 
inflammation and autoimmunity therapy area
in most business acquisitions there is a part of the cost that is not capable of being attributed in accounting terms to identifiable  
assets and liabilities acquired and is therefore recognised as goodwill in the case of the acquisition of ardea this goodwill is 
underpinned by a number of elements which individually cannot be quantified most significant among these is the premium 
attributable to a highlyskilled workforce and established experience in the field of gout 
ardea’s results have been consolidated into the group’s results from 20 june 2012 for the period from acquisition to 31 december 2012 
ardea’s revenues were immaterial in the context of the group’s revenue and its loss after tax was 43m if the acquisition had taken effect 
at the beginning of the reporting period 1 january 2012 on a pro forma basis the revenue of the combined group for 2012 would have 
been unchanged and the profit after tax would have been 6245m this pro forma information has been prepared taking into account 
any amortisation interest costs and related tax effects but does not purport to represent the results of the combined group that actually 
would have occurred had the acquisition taken place on 1 january 2012 and should not be taken to be representative of future results
book value
m
fair value
adjustment
m
fair value
m
noncurrent assets 
intangible assets – 1464 1464
other 4 – 4
4 1464 1468
current assets 199 – 199
current liabilities 31 1 32
noncurrent liabilities
deferred tax liabilities – 397 397
total assets acquired 172 1066 1238
goodwill 30
consideration 1268
less cash and cash equivalents acquired 81
net cash outflow 1187
acquisition costs arising on the acquisition of 12m were expensed within selling general and administrative costs in 2012
2011 disposals
astra tech
on 31 august 2011 the group completed the sale of the astra tech business to dentsply international inc on the loss of control 
the group derecognised the assets and liabilities of the subsidiary the surplus arising on the loss of control is recognised in profit 
astra tech’s results were consolidated for the period until disposal and contributed 386m in 2011 in revenue and 16m in 2011 in 
profit after tax
m
noncurrent assets 281
current assets 193
current liabilities 104
noncurrent liabilities 91
net book value of assets disposed 279
fees and other disposal costs 59
exchange recycled on disposal 26
profit on disposal 1483
consideration 1795
less cash held in disposed undertaking 23
net cash consideration 1772
the gain on disposal of astra tech is nontaxable astrazeneca annual report and form 20f information 2013 169
23 financial risk management objectives and policies
the group’s principal financial instruments other than derivatives comprise bank overdrafts finance leases loans current and noncurrent 
investments cash and shortterm deposits the main purpose of these financial instruments is to manage the group’s funding and liquidity 
requirements the group has other financial assets and liabilities such as trade receivables and trade payables which arise directly from 
its operations 
the principal financial risks to which the group is exposed are those of liquidity interest rate foreign currency and credit each of these 
is managed in accordance with boardapproved policies these policies are set out below
the group uses foreign currency borrowings foreign currency forwards crosscurrency swaps and interest rate swaps for the purpose 
of hedging its foreign currency and interest rate risks the group may designate certain financial instruments as either fair value hedges or 
net investment hedges in accordance with ias 39 key controls applied to transactions in derivative financial instruments are to use only 
instruments where good market liquidity exists to revalue all financial instruments regularly using current market rates and to sell options 
only to offset previously purchased options the group does not use derivative financial instruments for speculative purposes
capital management
the capital structure of the group consists of shareholders’ equity note 20 debt note 14 and cash note 13 for the foreseeable future 
the board will maintain a capital structure that supports the group’s strategic objectives through
  managing funding and liquidity risk
  optimising shareholder return
  maintaining a strong investmentgrade credit rating
funding and liquidity risk are reviewed regularly by the board and managed in accordance with policies described below
the board’s distribution policy comprises a regular cash dividend and subject to business needs a share repurchase component 
the board regularly reviews its shareholders’ return strategy and in 2012 decided to suspend share repurchases in order to retain 
strategic flexibility
the group’s net funds position loans and borrowings net of cash and cash equivalents current investments and derivative  
financial instruments has increased from a net debt position of 1369m at the beginning of the year to a net funds position of 39m at  
31 december 2013 as a result of increased cash inflows from operating activities offset by investment activities and dividends paid  
to shareholders in the year
liquidity risk
the board reviews the group’s ongoing liquidity risks annually as part of the planning process and on an ad hoc basis the board  
considers shortterm requirements against available sources of funding taking into account forecast cash flows the group manages 
liquidity risk by maintaining access to a number of sources of funding which are sufficient to meet anticipated funding requirements 
specifically the group uses us commercial paper committed bank facilities and cash resources to manage shortterm liquidity and 
manages longterm liquidity by raising funds through the capital markets the group is assigned shortterm credit ratings of p1 by 
moody’s and a1 by standard and poor’s the group’s longterm credit rating is a2 stable outlook by moody’s and aa negative outlook 
by standard and poor’s
in addition to cash and cash equivalents of 9217m fixed deposits of 15m less overdrafts of 222m at 31 december 2013 the  
group has committed bank facilities of 3bn available to manage liquidity at 31 december 2013 the group has issued 1608m under 
a euro medium term note programme and 7 674m under a secregistered programme the group regularly monitors the credit 
standing of the banking group and currently does not anticipate any issue with drawing on the committed facilities should this be necessary 
the committed facilities of 3bn mature in april 2018 and were undrawn at 31 december 2013
strategic report corporate governance additional information financial statements financial statements  notes to the group financial statements
astrazeneca annual report and form 20f information 2013 170
23 financial risk management objectives and policies continued 
the maturity profile of the anticipated future contractual cash flows including interest in relation to the group’s financial liabilities on an 
undiscounted basis and which therefore differs from both the carrying value and fair value is as follows
bank
overdrafts
and other
loans
m
bonds
m
finance
leases
m
trade
and other
payables
m
total
nonderivative
financial
instruments
m
interest
rate swaps
m
cross
currency
swaps
m
total
derivative
financial
instruments
m
total
m
within one year 226 2267 – 8975 11468 117 – 117 11351
in one to two years – 422 – 385 807 84 – 84 723
in two to three years – 1152 – – 1152 67 – 67 1085
in three to four years – 1352 – – 1352 49 – 49 1303
in four to five years – 332 – – 332 49 – 49 283
in more than five years – 9764 – – 9764 137 – 137 9627
226 15289 – 9360 24875 503 – 503 24372
effect of interest 5 6490 – – 6495 503 – 503 5992
effect of discounting fair values and 
issue costs – 308 – – 308 362 – 362 54
31 december 2011 221 9107 – 9360 18688 362 – 362 18326
bank
overdrafts
and other
loans
m
bonds
m
finance
leases
m
trade
and other
payables
m
total
nonderivative
financial
instruments
m
interest
rate swaps
m
cross
currency
swaps
m
total
derivative
financial
instruments
m
total
m
within one year 881 484 23 9221 10609 85 12 97 10512
in one to two years – 1214 23 1001 2238 67 12 79 2159
in two to three years – 1435 23 – 1458 49 12 61 1397
in three to four years – 393 21 – 414 49 12 61 353
in four to five years – 2143 11 – 2154 48 12 60 2094
in more than five years – 10766 – – 10766 90 96 186 10580
881 16435 101 10222 27639 388 156 544 27095
effect of interest 2 7340 17 – 7359 388 86 474 6885
effect of discounting fair values and 
issue costs – 252 – – 252 313 6 319 67
31 december 2012 879 9347 84 10222 20532 313 76 389 20143
bank
overdrafts
and other
loans
m
bonds
m
finance
leases
m
trade
and other
payables
m
total
nonderivative
financial
instruments
m
interest
rate swaps
m
cross
currency
swaps
m
total
derivative
financial
instruments
m
total
m
within one year 993 1217 34 10370 12614 70 16 86 12528
in one to two years – 1482 33 1044 2559 70 16 86 2473
in two to three years – 393 31 660 1084 51 16 67 1017
in three to four years – 2143 18 285 2446 51 16 67 2379
in four to five years – 290 3 230 523 51 15 66 457
in more than five years – 10497 – 1010 11507 77 229 306 11201
993 16022 119 13599 30733 370 308 678 30055
effect of interest 1 6872 17 – 6890 370 97 467 6423
effect of discounting fair values and 
issue costs – 132 – 885 753 193 24 169 922
31 december 2013 992 9282 102 12714 23090 193 187 380 22710
where interest payments are on a floating rate basis it is assumed that rates will remain unchanged from the last business day of each 
year ended 31 december
it is not expected that the cash flows in the maturity profile could occur significantly earlier or at significantly different amounts
market risk
interest rate risk
the group maintains a mix of fixed and floating rate debt the portion of fixed rate debt was approved by the board and any variation 
requires board approval a significant portion of the longterm debt entered into in 2007 in order to finance the acquisition of medimmune 
has been held at fixed rates of interest the group uses interest rate swaps and forward rate agreements to manage this mix
at 31 december 2013 the group held interest rate swaps with a notional value of 18bn converting the 54 callable bond maturing in 
2014 and the 7 guaranteed debentures payable in 2023 to floating rates and partially converting the 59 callable bond maturing in 2017 
to floating rates no new interest rate swaps were entered into during 2013 2012 or 2011 at 31 december 2013 swaps with a notional 
value of 075bn were designated in fair value hedge relationships and swaps with a notional value of 10bn related to debt designated 
as fair value through profit or loss designated hedges are expected to be effective and therefore the impact of ineffectiveness on profit 
is not expected to be material the accounting treatment for fair value hedges and debt designated as fair value through profit or loss is 
disclosed in the group accounting policies section from page 136 astrazeneca annual report and form 20f information 2013 171
23 financial risk management objectives and policies continued 
the majority of surplus cash is currently invested in us dollar liquidity funds earning floating rates of interest
the interest rate profile of the group’s interestbearing financial instruments as at 31 december 2013 31 december 2012 and 31 december 
2011 is set out below in the case of current and noncurrent financial liabilities the classification includes the impact of interest rate swaps 
which convert the debt to floating rate
2013 2012 2011
fixed rate
m
floating rate
m
total
m
fixed rate
m
floating rate
m
total
m
fixed rate
m
floating rate
m
total
m
financial liabilities
interestbearing loans and borrowings
current 30 1758 1788 22 879 901 999 991 1990
noncurrent 7376 1212 8588 7306 2103 9409 5215 2123 7338
total 7406 2970 10376 7328 2982 10310 6214 3114 9328
financial assets
fixed deposits – 15 15 – 46 46 – 3927 3927
cash and cash equivalents – 9217 9217 – 7701 7701 – 7571 7571
total – 9232 9232 – 7747 7747 – 11498 11498
in addition to the financial assets above there are 7 772m 2012 7 924m 201 1 87 47m of other current and noncurrent asset investments 
and other financial assets on which no interest is received 
foreign currency risk
the us dollar is the group’s most significant currency as a consequence the group results are presented in us dollars and exposures 
are managed against us dollars accordingly
translational
approximately 62 of group external sales in 2013 were denominated in currencies other than the us dollar while a significant proportion 
of manufacturing and research and development costs were denominated in pounds sterling and swedish kronor surplus cash 
generated by business units is substantially converted to and held centrally in us dollars as a result operating profit and total cash 
flow in us dollars will be affected by movements in exchange rates
this currency exposure is managed centrally based on forecast cash flows the impact of movements in exchange rates is mitigated 
significantly by the correlations which exist between the major currencies to which the group is exposed and the us dollar monitoring 
of currency exposures and correlations is undertaken on a regular basis and hedging is subject to preexecution approval 
where there is nonus dollar debt and an underlying net investment of that amount in the same currency the group applies net investment 
hedging as at 31 december 2013 55 of interestbearing loans and borrowings were denominated in pounds sterling and 100 of 
interestbearing loans and borrowings were denominated in euros exchange differences on the retranslation of debt designated as net 
investment hedges are recognised in other comprehensive income to the extent that the hedge is effective any ineffectiveness is taken 
to profit exchange differences on foreign currency borrowings not designated in a hedge relationship are taken to profit
in 2012 the group entered into a crosscurrency swap to convert 750m of the 195 2019 maturing bond into fixed japanese yen debt 
during 2013 the group entered into an additional crosscurrency swap to convert the remaining unhedged 250m of the 195 2019 
maturing bond into fixed japanese yen debt both these instruments were designated in net investment hedges against the foreign 
currency risk of the group’s japanese yen net assets
also in 2013 the group entered into a crosscurrency swap to convert 151m into fixed chinese renminbi debt maturing in 2018 
this instrument was designated in a net investment hedge against the foreign currency risk of the group’s chinese renminbi net assets 
fair value movements on the revaluation of the crosscurrency swaps are recognised in other comprehensive income to the extent that 
the hedge is effective any ineffectiveness would be taken to profit
transactional
one hundred percent of the group’s major transactional currency exposures on working capital balances which typically extend for up 
to three months are hedged where practicable using forward foreign exchange contracts against individual group companies’ reporting 
currency in addition the group’s external dividend which is paid principally in pounds sterling and swedish kronor is fully hedged 
from announcement to payment date foreign exchange gains and losses on forward contracts transacted for transactional hedging are 
taken to profit
sensitivity analysis 
the sensitivity analysis set out below summarises the sensitivity of the market value of our financial instruments to hypothetical changes 
in market rates and prices the range of variables chosen for the sensitivity analysis reflects our view of changes which are reasonably 
possible over a oneyear period market values are the present value of future cash flows based on market rates and prices at the valuation 
date for longterm debt an increase in interest rates results in a decline in the fair value of debt
the sensitivity analysis assumes an instantaneous 100 basis point change in interest rates in all currencies from their levels at 31 december 
2013 with all other variables held constant based on the composition of our longterm debt portfolio as at 31 december 2013 a 1 
increase in interest rates would result in an additional 30m in interest expense being incurred per year the exchange rate sensitivity 
analysis assumes an instantaneous 10 change in foreign currency exchange rates from their levels at 31 december 2013 with all other 
variables held constant the 10 case assumes a 10 strengthening of the us dollar against all other currencies and the 10 case 
assumes a 10 weakening of the us dollar
strategic report corporate governance additional information financial statements financial statements  notes to the group financial statements
astrazeneca annual report and form 20f information 2013 172
23 financial risk management objectives and policies continued 
each incremental 10 movement in foreign currency exchange rates would have approximately the same effect as the initial 10 detailed 
in the table below and each 1 change in interest rates would have approximately the same effect as the 1 detailed in the table below
31 december 2011
interest rates exchange rates
1 1 10 10
increasedecrease in fair value of financial instruments m 654 777 15 15
impact on profit lossgain m – – 190 190
impact on equity gainloss m – – 175 175
31 december 2012
interest rates exchange rates
1 1 10 10
increasedecrease in fair value of financial instruments m 853 1005 12 12
impact on profit lossgain m – – 231 231
impact on equity gainloss m – – 243 243
31 december 2013
interest rates exchange rates
1 1 10 10
increasedecrease in fair value of financial instruments m 669 839 12 12
impact on profit lossgain m – – 274 274
impact on equity gainloss m – – 262 262
there has been no change in the methods and assumptions used in preparing the above sensitivity analysis over the threeyear period
credit risk
the group is exposed to credit risk on financial assets such as cash balances including fixed deposits and cash and cash equivalents 
derivative instruments trade and other receivables the group is also exposed in its net asset position to its own credit risk in respect 
of the 2023 debentures and 2014 bonds which are accounted for at fair value through profit or loss
trade and other receivables
trade receivable exposures are managed locally in the operating units where they arise and credit limits are set as deemed appropriate 
for the customer the group is exposed to customers ranging from governmentbacked agencies and large private wholesalers to privately 
owned pharmacies and the underlying local economic and sovereign risks vary throughout the world where appropriate the group 
endeavours to minimise risks by the use of trade finance instruments such as letters of credit and insurance the group establishes 
an allowance for impairment that represents its estimate of incurred losses in respect of specific trade and other receivables where it is 
deemed that a receivable may not be recoverable when the debt is deemed irrecoverable the allowance account is written off against 
the underlying receivable 
in the us sales to three wholesalers accounted for approximately 77 of us sales 2012 three wholesalers accounted for approximately 
73 2011 three wholesalers accounted for approximately 75
the ageing of trade receivables at the reporting date was 
2013
m
2012
m
2011
m
not past due 5059 5322 6249
past due 090 days 330 288 177
past due 90180 days 78 41 82
past due  180 days 47 45 122
5514 5696 6630
2013
m
2012
m
2011
m
movements in provisions for trade receivables
at 1 january 64 66 81
income statement credit 5 – 10
amounts utilised exchange and other movements 5 2 5
at 31 december 64 64 66
the allowance for impairment has been calculated based on past experience and is in relation to specific customers given the profile 
of our customers including large wholesalers and governmentbacked agencies no further credit risk has been identified with the trade 
receivables not past due other than those balances for which an allowance has been made astrazeneca annual report and form 20f information 2013 173
23 financial risk management objectives and policies continued 
other financial assets
the group may hold significant cash balances as part of its normal operations with the amount of cash held at any point reflecting the 
level of cash flow generated by the business and the timing of the use of that cash the majority of excess cash is centralised within the 
group treasury entity and is subject to counterparty risk on the principal invested this risk is mitigated through a policy of prioritising 
security and liquidity over return and as such cash is only invested in high credit quality investments counterparty limits are set according 
to the assessed risk of each counterparty and exposures are monitored against these limits on a regular basis the majority of the group’s 
cash is invested in us dollar aaarated liquidity funds and shortterm bank deposits
the most significant concentration of financial credit risk at 31 december 2013 was 8409m invested in five us dollar aaarated liquidity 
funds the liquidity fund portfolios are managed by the related external third party fund managers to maintain the aaa rating no more 
than 15 of fund value is invested within each individual fund there were no other significant concentrations of financial credit risk at the 
reporting date
all financial derivatives are transacted with commercial banks in line with standard market practice the group has agreements with some 
bank counterparties whereby the parties agree to post cash collateral for the benefit of the other equivalent to the market valuation of 
the derivative positions above a predetermined threshold the carrying value of such cash collateral held by the group at 31 december 
2013 was 326m 2012 230m 2011 21m
24 employee costs and share plans for employees
employee costs
the average number of people to the nearest hundred employed by the group is set out in the table below in accordance with the 
companies act 2006 this includes parttime employees
2013 2012 2011
employees
uk 7200 7900 8700
continental europe 14000 16100 19200
the americas 14600 15300 18000
asia africa  australasia 15800 14200 13900
continuing operations 51600 53500 59800
geographical distribution described in the table above is by location of legal entity employing staff certain staff will spend some  
or all of their activity in a different location
the number of people employed by the group at the end of 2013 was 51500 2012 51700 2011 57 200
the costs incurred during the year in respect of these employees were
2013
m
2012
m
2011
m
salaries 3833 4192 4631
social security costs 622 664 783
pension costs 445 525 490
other employment costs 376 362 496
5276 5743 6400
severance costs of 653m are not included above 2012 846m 2011 431m
the directors believe that together with the basic salary system the group’s employee incentive schemes provide competitive and 
marketrelated packages to motivate employees they should also align the interests of employees with those of shareholders as a 
whole through longterm share ownership in the company the group’s current uk swedish and us schemes are described below 
other arrangements apply elsewhere
bonus plans
the astrazeneca uk performance bonus plan
employees of participating astrazeneca uk companies are invited to participate in this bonus plan which rewards strong individual 
performance bonuses are paid in cash the company also offers uk employees the opportunity to buy partnership shares ordinary 
shares employees may invest up to £1500 over a 12 month accumulation period and purchase partnership shares in the company 
with the total proceeds at the end of the period the purchase price for the shares is the lower of the price at the beginning or the end of 
the 12 month period in 2010 the company introduced a matching share element in respect of partnership shares the first award of which 
was made in 2011 partnership shares and matching shares are held in the hm revenue  customs hmrcapproved allemployee 
share plan at the company’s agm in 2002 shareholders approved the issue of new shares for the purposes of the allemployee 
share plan
the astrazeneca executive annual bonus scheme
this scheme is a performance bonus scheme for directors and senior employees who do not participate in the astrazeneca uk 
performance bonus plan annual bonuses are paid in cash and reflect both corporate and individual performance measures 
the remuneration committee has discretion to reduce or withhold bonuses if business performance falls sufficiently short of expectations 
in any year such as to make the payment of bonuses inappropriate
strategic report corporate governance additional information financial statements financial statements  notes to the group financial statements
astrazeneca annual report and form 20f information 2013 174
24 employee costs and share plans for employees continued
the astrazeneca deferred bonus plan
this plan was introduced in 2006 and is used to defer a portion of the bonus earned under the astrazeneca executive annual bonus 
scheme into ordinary shares in the company for a period of three years the plan currently operates only in respect of executive directors 
and members of the set awards of shares under this plan are typically made in february each year the first award having been made 
in february 2006
sweden
in sweden an allemployee performance bonus plan is in operation which rewards strong individual performance bonuses are paid 
50 into a fund investing in astrazeneca equities and 50 in cash the astrazeneca executive annual bonus scheme the astrazeneca 
performance share plan and the astrazeneca global restricted stock plan all operate in respect of relevant astrazeneca employees 
in sweden
us
in the us there are two allemployee shortterm or annual performance bonus plans in operation to differentiate and reward strong 
individual performance annual bonuses are paid in cash there is also one senior staff longterm incentive scheme under which 80 
participants may be eligible for awards granted as astrazeneca adss astrazeneca adss necessary to satisfy the awards are purchased 
in the market or funded via a share trust the astrazeneca performance share plan and the astrazeneca global restricted stock plan 
operate in respect of relevant employees in the us
share plans 
the charge for sharebased payments in respect of share plans is 156m 2012 139m 2011 153m the plans are equity settled
the astrazeneca performance share plan
this plan was approved by shareholders in 2005 for a period of 10 years generally awards can be granted at any time but not during 
a close period of the company the first grant of awards was made in june 2005 the main grant of awards in 2013 under the plan was 
in june with further smaller grants in august and november awards granted under the plan vest after three years and can be subject to the 
achievement of performance conditions for awards to all participants in 2013 except employees of medimmune vesting is subject to 
a combination of measures focused on scientific leadership revenue growth and financial performance a separate performance condition 
applies to employees of medimmune the remuneration committee has responsibility for agreeing any awards under the plan and for 
setting the policy for the way in which the plan should be operated including agreeing performance targets and which employees should 
be invited to participate further details of this plan can be found in the directors’ remuneration report from page 102
shares
’000
wafv
1 
pence
wafv
1 

shares awarded in march 2011 2964 1427 2309
shares awarded in august 2011 127 1421 2333
shares awarded in march 2012 3283 1403 2241
shares awarded in august 2012 38 1480 2350
shares awarded in june 2013 2867 1649 2573
shares awarded in august 2013 197 1649 2512
shares awarded in november 2013 30 1649 2638
1
 weighted average fair value
the astrazeneca investment plan
this plan was introduced in 2010 and approved by shareholders at the 2010 agm the main grant of awards in 2013 under the  
plan was in june with a further smaller grant in august awards granted under the plan vest after eight years and are subject to 
performance conditions measured over a period of between three and eight years for awards granted in 2013 the performance 
conditions relate to the annual dividend paid to shareholders and dividend cover over a four year performance period the awards are 
then subject to a fouryear holding period before they can vest the remuneration committee has responsibility for agreeing any 
awards under the plan and for setting the policy for the way in which the plan should be operated including agreeing performance 
targets and which employees should be invited to participate further details of this plan can be found in the directors’ remuneration 
report from page 102
shares
’000
wafv
 
pence
wafv
 

shares awarded in march 2011 95 2853 4618
shares awarded in august 2011 3 2841 na
shares awarded in march 2012 113 2805 4482
shares awarded in october 2012 69 2894 na
shares awarded in june 2013 157 3297 5145
shares awarded in august 2013 8 3302 na astrazeneca annual report and form 20f information 2013 175
24 employee costs and share plans for employees continued
the astrazeneca global restricted stock plan
this plan was introduced in 2010 the main grant of awards in 2013 under the plan was in march with further smaller grants in june and 
august this plan provides for the grant of restricted stock unit rsu awards to selected below setlevel employees and is used in 
conjunction with the astrazeneca performance share plan to provide a mix of rsus and performance shares awards typically vest on 
the third anniversary of the date of grant and are contingent on continued employment with the company the remuneration committee 
has responsibility for agreeing any awards under the plan and for setting the policy for the way in which the plan should be operated
shares
’000
wafv
 
pence
wafv
 

shares awarded in march 2011 2706 2853 4618
shares awarded in august 2011 54 2841 4665
shares awarded in march 2012 2916 2805 4482
shares awarded in august 2012 26 2959 4700
shares awarded in march 2013 1417 3254 4942
shares awarded in june 2013 986 3297 5145
shares awarded in august 2013 13 3206 5023
the astrazeneca restricted share plan
this plan was introduced in 2008 and provides for the grant of restricted share awards to key employees excluding executive directors 
awards are made on an ad hoc basis with variable vesting dates the plan has been used eight times in 2013 to make awards to 300 
employees the remuneration committee has responsibility for agreeing any awards under the plan and for setting the policy for the 
way in which the plan should be operated
shares
’000
wafv
 
pence
wafv
 

shares awarded in january 2011 2 2955 na
shares awarded in february 2011 136 3030 4855
shares awarded in march 2011 29 na 4637
shares awarded in may 2011 14 3052 5045
shares awarded in july 2011 21 3026 na
shares awarded in august 2011 27 2841 4665
shares awarded in november 2011 10 na 4902
shares awarded in february 2012 10 3067 4820
shares awarded in march 2012 371 2805 4482
shares awarded in july 2012 5 na 4694
shares awarded in august 2012 188 2959 4700
shares awarded in october 2012
1
69 2894 na
shares awarded in february 2013 2 3125 na
shares awarded in march 2013 144 na 4923
shares awarded in june 2013 25 na 5145
shares awarded in august 2013 119 3302 5023
shares awarded in september 2013 85 na 4921
shares awarded in november 2013 739 3297 5276
1
 this is an award of restricted shares granted to pascal soriot under an arrangement the details of which are identical to the rules of the astrazeneca restricted share plan
the fair values were determined using a modified version of the binomial model this method incorporated expected dividends but no 
other features into the measurements of fair value the grant date fair values of share awards disclosed in this section do not take account 
of service and nonmarket related performance conditions
strategic report corporate governance additional information financial statements financial statements  notes to the group financial statements
astrazeneca annual report and form 20f information 2013 176
25 commitments and contingent liabilities
2013
m
2012
m
2011
m
commitments
contracts placed for future capital expenditure on property plant and equipment 
and software development costs not provided for in these accounts 481 245 190
guarantees and contingencies arising in the ordinary course of business for which no security has been given are not expected to result 
in any material financial loss
research and development collaboration payments
the group has various ongoing collaborations including inlicensing and similar arrangements with development partners such collaborations 
may require the group to make payments on achievement of stages of development launch or revenue milestones although the group 
generally has the right to terminate these agreements at no cost the group recognises research and development milestones as 
intangible assets once it is committed to payment which is generally when the group reaches set trigger points in the development 
cycle revenuerelated milestones are recognised as intangible assets on product launch at a value based on the group’s longterm 
revenue forecasts for the related product the table below indicates potential development and revenuerelated payments that the 
group may be required to make under such collaborations
total
m
under 1 year
m
years 1 and 2
m
years 3 and 4
m
years 5 
and greater
m
future potential research and development milestone payments 5024 411 1015 838 2760
future potential revenue milestone payments 5788 158 – 329 5301
the table includes all potential payments for achievement of milestones under ongoing research and development arrangements 
revenuerelated milestone payments represent the maximum possible amount payable on achievement of specified levels of revenue as 
set out in individual contract agreements but exclude variable payments that are based on unit sales eg royaltytype payments which 
are expensed as the associated sale is recognised the table excludes any payments already capitalised in the financial statements for 
the year ended 31 december 2013
the future payments we disclose represent contracted payments and as such are not discounted and are not risk adjusted as detailed 
in the principal risks and uncertainties section from page 200 the development of any pharmaceutical product candidate is a complex and 
risky process that may fail at any stage in the development process due to a number of factors including items such as failure to obtain 
regulatory approval unfavourable data from key studies adverse reactions to the product candidate or indications of other safety concerns 
the timing of the payments is based on the group’s current best estimate of achievement of the relevant milestone
environmental costs and liabilities
the group’s expenditure on environmental protection including both capital and revenue items relates to costs which are necessary 
for implementing internal systems and programmes and meeting legal and regulatory requirements for processes and products
they are an integral part of normal ongoing expenditure for carrying out the group’s research manufacturing and commercial operations 
and are not separated from overall operating and development costs there are no known changes in legal regulatory or other requirements 
resulting in material changes to the levels of expenditure for 2011 2012 or 2013
in addition to expenditure for meeting current and foreseen environmental protection requirements the group incurs costs in investigating 
and cleaning up land and groundwater contamination in particular astrazeneca has environmental liabilities at some currently or formerly 
owned leased and third party sites
in the us zeneca inc andor its indemnitees have been named as potentially responsible parties prps or defendants at approximately 
18 sites where zeneca inc is likely to incur future environmental investigation remediation operation and maintenance costs under 
federal state statutory or common law environmental liability allocation schemes together us environmental consequences similarly 
stauffer management company llc smc which was established in 1987 to own and manage certain assets of stauffer chemical 
company acquired that year andor its indemnitees have been named as prps or defendants at 30 sites where smc is likely to incur 
us environmental consequences astrazeneca has also given indemnities to third parties for a number of sites outside the us these 
environmental liabilities arise from legacy operations that are not currently part of the group’s business and at most of these sites 
remediation where required is either completed or nearing completion
astrazeneca has made provisions for the estimated costs of future environmental investigation remediation operation and maintenance 
activity beyond normal ongoing expenditure for maintaining the group’s rd and manufacturing capacity and product ranges where 
a present obligation exists it is probable that such costs will be incurred and they can be estimated reliably with respect to such estimated 
future costs there were provisions at 31 december 2013 in the aggregate of 87m 2012 88m 2011 92m mainly relating to the us 
where we are jointly liable or otherwise have costsharing agreements with third parties we reflect only our share of the obligation where 
the liability is insured in part or in whole by insurance or other arrangements for reimbursement an asset is recognised to the extent that 
this recovery is virtually certain
it is possible that astrazeneca could incur future environmental costs beyond the extent of our current provisions the extent of  
such possible additional costs is inherently difficult to estimate due to a number of factors including 1 the nature and extent of claims 
that may be asserted in the future 2 whether astrazeneca has or will have any legal obligation with respect to asserted or unasserted 
claims 3 the type of remedial action if any that may be selected at sites where the remedy is presently not known 4 the potential for 
recoveries from or allocation of liability to third parties and 5 the length of time that the environmental investigation remediation and 
liability allocation process can take notwithstanding and subject to the foregoing we estimate the potential additional loss for future 
environmental investigation remediation remedial operation and maintenance activity above and beyond our provisions to be in 
aggregate between 50m to 90m 2012 50m to 90m 2011 50m to 90m which relates solely to the us astrazeneca annual report and form 20f information 2013 177
over the course of the past several years 
including in 2013 a significant number 
of commercial litigation claims in which 
astrazeneca is involved have been resolved 
particularly in the us thereby reducing 
potential contingent liability exposure 
arising from such litigation similarly in part 
due to patent litigation and settlement 
developments greater certainty has been 
achieved regarding possible generic entry 
dates with respect to some of our patented 
products at the same time like other 
companies in the pharmaceutical sector 
and other industries astrazeneca continues 
to be subject to government investigations 
around the world
patent litigation
atacand candesartan cilexetil 
patent proceedings in the us 
in march 2013 astrazeneca received 
a paragraph iv notice letter notice 
from sandoz inc related to atacand 
astrazeneca did not respond to the notice 
crestor rosuvastatin calcium 
us patent litigation 
in december 2012 the us court of appeals 
for the federal circuit court of appeals 
affirmed a lower court’s decision holding 
that the substance patent protecting crestor 
is valid and enforceable in january 2013 
defendants aurobindo pharma limited 
teva pharmaceuticals usa inc mylan 
pharmaceuticals inc sun pharmaceutical 
industries ltd and separately apotex 
corp filed petitions for rehearing and 
rehearing en banc of aspects of the 
decision in february and march 2013 
the court of appeals denied the petitions 
the defendants did not seek further review 
of the decision which is now final 
in april 2013 astrazeneca and apotex 
inc the canadian affiliate of apotex corp 
jointly requested the us district court 
in florida district court to enter a 
stipulated order dismissing the claims and 
counterclaims in the case against apotex 
inc in may 2013 pursuant to agreement 
by the parties the district court dismissed 
and closed the related litigation against 
apotex inc
in december 2012 a trial took place in 
the us district court for the district of 
delaware in which astrazeneca contended 
that a 505b2 nda for rosuvastatin zinc 
tablets infringes the substance patent for 
crestor tablets in march 2013 the parties 
entered into a settlement agreement 
resolving the litigation and the case was 
dismissed by consent judgment under the 
agreement watson laboratories inc and 
actavis inc together watson and egis 
pharmaceuticals plc conceded that the 
crestor substance patent is valid enforceable 
and would be infringed by watson’s 
rosuvastatin zinc product and its rosuvastatin 
calcium product the settlement agreement 
permits watson to begin selling its generic 
25 commitments and contingent 
liabilities continued
legal proceedings
astrazeneca is involved in various legal 
proceedings considered typical to its 
business including actual or threatened 
litigation andor actual or potential 
government investigations relating to 
employment matters product liability 
commercial disputes pricing sales and 
marketing practices infringement of ip 
rights the validity of certain patents and 
competition laws the more significant 
matters are discussed below
most of the claims involve highly complex 
issues often these issues are subject to 
substantial uncertainties and therefore the 
probability of a loss if any being sustained 
and an estimate of the amount of any loss 
is difficult to ascertain consequently for 
a majority of these claims it is not possible 
to make a reasonable estimate of the 
expected financial effect if any that will 
result from ultimate resolution of the 
proceedings in these cases astrazeneca 
discloses information with respect to the 
nature and facts of the cases
with respect to each of the legal proceedings 
described below other than those for 
which provision has been made we are 
unable to make estimates of the possible 
loss or range of possible losses at this 
stage other than as set forth in this section 
we also do not believe that disclosure of 
the amount sought by plaintiffs if known 
would be meaningful with respect to those 
legal proceedings this is due to a number 
of factors including 1 the stage of the 
proceedings in many cases trial dates have 
not been set and the overall length and 
extent of pretrial discovery 2 the entitlement 
of the parties to an action to appeal a 
decision 3 clarity as to theories of liability 
damages and governing law 4 uncertainties 
in timing of litigation and 5 the possible need 
for further legal proceedings to establish 
the appropriate amount of damages if any
however we have disclosed the amount of 
damages sought by plaintiffs in the nexium 
settlement antitrust litigation because of the 
extraordinarily high level of those claims 
notwithstanding that astrazeneca believes 
that the plaintiffs’ damages scenarios are 
speculative contrary to fact and without merit 
and are not a reasonable estimate of the 
expected financial effect if any that will result 
from ultimate resolution of the proceedings
while there can be no assurance regarding 
the outcome of any of the legal proceedings 
referred to in this note 25 based on 
management’s current and considered 
view of each situation we do not currently 
expect them to have a material adverse 
effect on our financial position this position 
could of course change over time not least 
because of the factors referred to above
in cases that have been settled or 
adjudicated or where quantifiable fines 
and penalties have been assessed and 
which are not subject to appeal or other 
similar forms of relief or where a loss 
is probable and we are able to make a 
reasonable estimate of the loss we indicate 
the loss absorbed or the amount of the 
provision accrued
where it is considered that the group is 
more likely than not to prevail legal costs 
involved in defending the claim are charged 
to profit as they are incurred
where it is considered that the group has 
a valid contract which provides the right 
to reimbursement from insurance or 
otherwise of legal costs andor all or part 
of any loss incurred or for which a provision 
has been established and we consider 
recovery to be virtually certain the best 
estimate of the amount expected to be 
received is recognised as an asset
assessments as to whether or not to 
recognise provisions or assets and of 
the amounts concerned usually involve a 
series of complex judgements about future 
events and can rely heavily on estimates 
and assumptions astrazeneca believes 
that the provisions recorded are adequate 
based on currently available information and 
that the insurance recoveries recorded will 
be received however given the inherent 
uncertainties involved in assessing the 
outcomes of these cases and in estimating 
the amount of the potential losses and the 
associated insurance recoveries we could 
in the future incur judgments or insurance 
settlements that could have a material 
adverse effect on our results in any 
particular period
ip claims include challenges to the group’s 
patents on various products or processes 
and assertions of noninfringement of 
patents a loss in any of these cases could 
result in loss of patent protection on the 
related product the consequences of any 
such loss could be a significant decrease 
in product sales which could have a material 
adverse effect on our results the lawsuits 
filed by astrazeneca for patent infringement 
against companies that have filed andas 
in the us seeking to market generic forms 
of products sold by the group prior to the 
expiry of the applicable patents covering 
these products typically also involve 
allegations of noninfringement invalidity 
and unenforceability of these patents by 
the anda filers in the event that the group 
is unsuccessful in these actions or the 
statutory 30month stay expires before a 
ruling is obtained the anda filers involved 
will also have the ability subject to fda 
approval to introduce generic versions of 
the product concerned
astrazeneca has full confidence in and will 
vigorously defend and enforce its ip 
strategic report corporate governance additional information financial statements financial statements  notes to the group financial statements
astrazeneca annual report and form 20f information 2013 178
of appeals affirmed the district court’s 
claim construction including that hanmi’s 
product would not infringe the patents 
at issue in january 2014 astrazeneca 
requested a rehearing in the court of 
appeals astrazeneca understands that 
hanmi’s 505b2 esomeprazole strontium 
product is not abrated and is not subject 
to automatic substitution with nexium
patent proceedings outside the us 
in australia in 2011 ranbaxy laboratories 
ltd and ranbaxy australia pty ltd 
together ranbaxy filed an application for 
the revocation on the basis of invalidity of two 
nexium patents australian patent no 676337 
and australian patent no 695966 with the 
federal court of australia astrazeneca 
crossclaimed for infringement of these 
patents and asserted infringement of a 
further nexium patent australian patent 
no 695774 in may 2013 the federal court 
of australia maintained the validity of each 
of the patentsinsuit and held that ranbaxy 
infringed the 676337 and 695966 patents but 
that the 695774 patent was not infringed 
ranbaxy appealed this decision and 
astrazeneca crossappealed in november 
2013 astrazeneca and ranbaxy entered 
into a settlement agreement under the 
terms of the agreement the appeal and 
crossappeal were discontinued
in australia in august 2013 astrazeneca 
commenced proceedings against 
alphapharm pty ltd for infringement 
of the 676337 and 695966 patents
in canada patent infringement proceedings 
against apotex inc continue a trial was 
held from september to november 2013 
the decision is under reserve
in canada in march 2013 the federal 
court prohibited ranbaxy pharmaceuticals 
canada inc ranbaxy from receiving a 
marketing authorisation for its esomeprazole 
magnesium product until june 2015 
ranbaxy appealed the decision in december 
2013 astrazeneca settled the proceeding 
with ranbaxy
in the uk in september 2010 astrazeneca 
initiated patent infringement proceedings 
against consilient health limited consilient 
and krka dd novo mesto krka consilient 
and krka had previously agreed not to 
launch their esomeprazole magnesium 
product pending the outcome of the patent 
infringement proceedings although this 
injunction was discharged in july 2011 
astrazeneca may remain liable for damages 
resulting from the injunction in 2012 
consilient and krka commenced damages 
proceedings a damages inquiry hearing 
took place in december 2013 and a 
finding of fact was issued in january 2014 
damages will be awarded to consilient and 
krka in due course the decision is under 
reserve a provision has been taken 
25 commitments and contingent 
liabilities continued
losecprilosec omeprazole
us patent litigation
in november 2008 astrazeneca 
commenced litigation to recover patent 
infringement damages against andrx 
pharmaceuticals inc andrx in october 
2013 the us district court for the southern 
district of new york entered a consent 
order and final judgment in favour of andrx 
awarding no damages to astrazeneca 
astrazeneca did not appeal the decision
astrazeneca continues litigation to recover 
patent infringement damages against 
apotex corp and apotex inc together 
apotex in december 2013 the us district 
court for the southern district of new york 
entered final judgment against apotex for 
approximately 104m apotex has appealed 
the decision
patent proceedings outside the us 
in canada the astrazeneca patent 
infringement proceeding against apotex inc 
regarding omeprazole capsules and tablets 
remains pending 
in may 2012 in canada the federal court 
found astrazeneca liable to apotex inc 
for section 8 damages arising from notice 
of compliance proceedings that had been 
finally dismissed in december 2003 in march 
2013 astrazeneca’s appeal was dismissed 
the actual amount of damages owing 
if any will be determined at a future date 
by a court reference procedure 
nexium esomeprazole magnesium 
us patent litigation 
in 2013 astrazeneca received four 
paragraph iv notice letters from companies 
seeking to market generic esomeprazole 
magnesium 20mg and 40mg delayed
release capsules in response to these 
notice letters and corresponding anda 
filings astrazeneca commenced separate 
patent infringement litigation against 
watson laboratories inc wockhardt usa 
llc aurobindo pharma ltd and kremers 
urban pharmaceuticals inc in the us 
district court for the district of new jersey 
all four litigation proceedings are in early 
stages and trial dates have not been set
in february 2011 astrazeneca commenced 
patent infringement litigation in the us 
district court for the district of new jersey 
district court against hanmi usa inc and 
affiliates hanmi in response to hanmi’s 
filing of an nda under 505b2 to market 
esomeprazole strontium delayedrelease 
capsules in june 2013 astrazeneca 
entered into a settlement agreement to 
expedite astrazeneca’s appeal of the 
district court’s december 2012 claim 
construction to the us court of appeals 
for the federal circuit court of appeals 
under a district court consent judgment 
hanmi conceded that astrazeneca’s 
two patents at issue are valid and 
enforceable in december 2013 the court 
version of crestor and its rosuvastatin zinc 
product beginning 2 may 2016 at a fee 
to astrazeneca of 39 of net sales 
of watson’s products until the end of 
paediatric exclusivity on 8 july 2016 
the entry date could be earlier and the 
fees eliminated in certain circumstances
astrazeneca is defending three patent 
infringement lawsuits in the us district 
court for the district of south carolina 
which among other things claim that 
astrazeneca’s crestor sales induce 
infringement of the plaintiffs’ patents 
the first was filed in april 2011 by plaintiff 
palmetto pharmaceuticals llc and the 
other two were filed in july and december 
2013 by coplaintiffs medical university of 
south carolina foundation for research 
development and charleston medical 
therapeutics inc
patent proceedings outside the us 
astrazeneca is engaged in proceedings in 
australia brazil malaysia mexico portugal 
south africa and taiwan regarding patent 
andor regulatory exclusivity for crestor 
generic drug manufacturers have 
commenced sales of generic rosuvastatin 
drug products in australia brazil malaysia 
mexico south africa and taiwan 
in australia in 2011 astrazeneca instituted 
proceedings against apotex pty ltd 
asserting infringement of various formulation 
and method patents for crestor in january 
2012 astrazeneca instituted similar 
proceedings against watson pharma pty 
ltd and actavis australia pty ltd in march 
2013 the federal court of australia held all 
three patents at issue invalid astrazeneca 
appealed the decision the appeal was 
heard in july 2013 and a decision has not 
yet been released
faslodex fulvestrant 
patent proceedings outside the us
in europe in 2008 the opposition division of 
the european patent office epo maintained 
a faslodex formulation patent ep 1250138 
following an opposition against the grant of 
this patent by gedeon richter plc which 
appealed this decision the board of appeal 
of the epo has called the parties to oral 
proceedings on 18 march 2014
in brazil in january 2013 astrazeneca 
instituted proceedings against eurofarma 
laboratorios sa eurofarma asserting 
infringement of a formulation patent for 
faslodex in may 2013 eurofarma were 
found to infringe the patent eurofarma 
appealed and legal proceedings are in 
progress in february 2013 eurofarma 
separately filed nullity actions against the 
formulation patent in the 31st specialized 
intellectual property federal court of rio 
de janeiro and in april 2013 at the 
brazilian patent office astrazeneca annual report and form 20f information 2013 179
25 commitments and contingent 
liabilities continued
generic versions of seroquel xr have been 
launched in austria denmark germany 
italy portugal romania the uk and 
elsewhere in europe while astrazeneca 
continues to have confidence in the patent 
protecting seroquel xr and will continue to 
take appropriate legal action additional 
generic launches and adverse court rulings 
are possible
symbicort budesonideformoterol 
us patent litigation
in october 2013 astrazeneca and accuhale 
llc accuhale executed a settlement 
agreement to resolve a lawsuit brought in 
the us district court for the eastern 
district of pennsylvania that alleged sales 
of symbicort infringed a patent purportedly 
owned by accuhale a provision has been 
taken this case has been dismissed 
vimovo fixeddose combination of 
naproxenesomeprazole
us patent litigation
in january 2014 astrazeneca and pozen 
inc commenced patent infringement actions 
in the us district court for the district of 
new jersey against two additional anda 
challengers seeking approval to market a 
generic copy of vimovo separately four 
patent infringement actions regarding 
generic versions of vimovo are pending in the 
same court no trial dates have been set
zestril lisinopril dehydrate
patentregulatory proceedings outside 
the us
in 1996 two of astrazeneca’s predecessor 
companies zeneca limited and zeneca 
pharma inc as licensees merck  co 
inc and merck frosst canada inc 
together merck group commenced a 
patent infringement action in canada 
against apotex inc apotex alleging 
infringement of merck group’s lisinopril 
patent in 2010 after having established 
apotex’s liability astrazeneca and the 
merck group initiated proceedings to 
recover damages and that damages claim 
remains pending
in september 2013 astrazeneca entered 
into an agreement with hexal ag a member 
of the sandoz group of companies hexal
sandoz to resolve more than 30 european 
disputes between astrazeneca and hexal
sandoz affiliates related to astrazeneca’s 
nexium patents and hexalsandoz’s version 
of esomeprazole magnesium the agreement 
resolves disputes in 20 countries 
astrazeneca is involved in many proceedings 
regarding patent andor regulatory exclusivity 
for nexium including in australia austria 
canada china denmark france italy the 
netherlands norway philippines poland 
portugal russia slovenia south africa 
switzerland taiwan and turkey there is 
generic entry in many european markets 
while astrazeneca continues to have 
confidence in the patents protecting nexium 
and will continue to take appropriate legal 
action additional generic launches and 
adverse court rulings are possible
pulmicort respules 
budesonide inhalation suspension 
us patent litigation 
in april 2013 the us district court for the 
district of new jersey district court ruled 
that astrazeneca’s us patent no 6598603 
the ‘603 patent is invalid and that the 
generic defendants involved in the litigation 
do not infringe a second patent us patent 
no 7 524834 the ‘834 patent in april 2013 
astrazeneca filed a notice of appeal and in 
may 2013 the us court of appeals for the 
federal circuit court of appeals enjoined 
the generic defendants from entering the 
market until its ruling on astrazeneca’s 
appeal in october 2013 the court of 
appeals reversed and remanded for further 
proceedings the district court’s decision 
that the generic defendants involved in 
the litigation do not infringe the ‘834 patent 
the court of appeals upheld however the 
district court’s decision that the ‘603 patent 
is invalid in december 2013 the district 
court granted astrazeneca’s motion and 
temporarily enjoined the generic defendants 
from entering the market until resolution 
of astrazeneca’s motion for a preliminary 
injunction also in december 2013 the 
court of appeals issued its mandate to 
the district court 
seroquel ir quetiapine fumarate 
us regulatory proceedings 
in april 2013 the us court of appeals for 
the district of columbia circuit court of 
appeals affirmed the trial court’s previous 
ruling that seroquel ir was not entitled to 
additional regulatory exclusivity in the us 
beyond march 2012 in may 2013 the 
court of appeals denied astrazeneca’s 
motion for reconsideration
seroquel xr quetiapine fumarate 
us patent litigationregulatory proceedings
in february 2013 the us court of appeals 
for the federal circuit affirmed the march 
2012 decision of the us district court for 
the district of new jersey that the seroquel 
xr formulation patent is valid and infringed
in february 2013 astrazeneca settled its 
patent infringement action against torrent 
pharmaceuticals limited and torrent 
pharma inc and in april 2013 settled its 
patent infringement action against lupin 
ltd in both cases astrazeneca granted a 
license to the seroquel xr product patent 
effective 1 november 2016 or earlier in 
certain circumstances
patent proceedings outside the us 
in march 2013 the federal court of canada 
dismissed astrazeneca’s application to 
prohibit the canadian minister of health from 
issuing a notice of compliance to teva 
canada limited teva for its generic 
quetiapine fumarate product relating to 
seroquel xr teva has launched its generic 
seroquel xr at risk and has filed an action 
seeking section 8 damages arising from 
these proceedings 
also in march 2013 astrazeneca 
discontinued its application to prohibit the 
canadian minister of health from issuing a 
notice of compliance to sandoz canada 
inc sandoz for its generic quetiapine 
fumarate product relating to seroquel xr 
in august 2013 astrazeneca and sandoz 
entered into a settlement agreement 
ending the ongoing patent litigation 
between the parties and allowing sandoz 
to launch generic seroquel xr immediately 
in the uk in march 2012 the uk high court 
found the seroquel xr formulation patent 
invalid in april 2013 the court of appeal 
in the uk denied astrazeneca’s appeal 
in december 2013 the uk supreme court 
decided not to hear an appeal of the court 
of appeal’s decision
in spain in october 2013 the barcelona 
court of appeal reversed the july 2012 
opinion by the commercial court in 
barcelona and found the seroquel xr 
formulation patent invalid astrazeneca 
has appealed the decision
in portugal there have been numerous 
challenges to the seroquel xr formulation 
patent there have been three arbitral panel 
decisions rendered in september october 
and november 2013 respectively all decided 
in astrazeneca’s favour there are other 
similar proceedings pending in portugal
in belgium in december 2013 the 
commercial court of antwerp found the 
seroquel xr formulation patent invalid 
astrazeneca intends to appeal this decision
strategic report corporate governance additional information financial statements financial statements  notes to the group financial statements
astrazeneca annual report and form 20f information 2013 180
plaintiffs in december 2013 522 of the 
1104 dismissed plaintiffs collectively 
moved the mdl court to have their claims 
reinstated astrazeneca has opposed 
this motion which remains pending on 
13 january 2014 the mdl court dismissed 
the claims of an additional 179 plaintiffs
seroquel ir quetiapine fumarate 
with regard to seroquel ir product liability 
litigation in the us astrazeneca is aware of 
approximately 10 cases in active litigation 
in various jurisdictions 
four putative class actions were initiated in 
canada in the provinces of alberta british 
columbia ontario and quebec alleging 
that astrazeneca failed to provide adequate 
warnings in connection with an alleged 
association between seroquel ir and the 
onset of diabetes class certification was 
denied in the quebec proceedings in 2011 
and in the ontario proceedings in 2012 both 
decisions were appealed in december 2012 
the quebec court of appeal approved the 
plaintiff’s motion to abandon the appeal of 
the lower court’s decision to deny class 
certification in february 2013 the ontario 
divisional court divisional court dismissed 
plaintiffs’ appeal in october 2013 the 
ontario superior court dismissed the action 
and approved a settlement in which plaintiffs 
agreed to abandon all further rights of appeal 
regarding the divisional court’s decision to 
deny class certification and astrazeneca 
agreed not to pursue its costs award 
associated with the decision the cases in 
alberta and british columbia remain stayed
with regard to insurance coverage for 
the substantial legal defence costs and 
settlements that have been incurred in 
connection with the seroquel ir product 
liability claims in the us related to alleged 
diabetes andor other related alleged injuries 
which now exceed the total amount of 
insurance coverage available disputes 
continue with insurers about the availability 
of coverage under certain insurance policies 
these policies have aggregate coverage 
limits of 300m 
astrazeneca commenced legal proceedings 
in the uk against two of the insurers in 
respect of policies with aggregate coverage 
limits of 200m and in february 2013 the 
high court issued a judgment on preliminary 
legal issues which ruled that astrazeneca 
was not entitled to recover under those 
policies astrazeneca appealed the decision 
but in december 2013 the court of appeal 
issued a judgment which upheld the high 
court’s ruling
an arbitration has commenced against 
another insurer in respect of a policy with 
a coverage limit of 50m 
astrazeneca has not recognised an 
insurance receivable in respect of these 
legal actions 
commercial litigation 
crestor rosuvastatin calcium
qui tam litigation
as disclosed in the government investigations 
section the us attorney’s offices and all 
states except for the state of texas have 
declined to intervene in the civil component 
of a previously disclosed investigation 
regarding crestor as a result astrazeneca 
has now been named as a defendant in 
a lawsuit filed in the us federal court in 
wilmington delaware under the qui tam 
whistleblower provisions of the federal false 
claims act and the florida whistleblower 
act alleging that astrazeneca directed 
certain employees to promote crestor 
offlabel astrazeneca intends to vigorously 
defend this matter
israel 
in november 2012 a motion to certify 
a claim as a class action and statement 
of claim were filed in israel in the district 
court in tel aviv jaffa against astrazeneca 
and four other pharmaceutical companies 
for alleged deception and failure to disclose 
material facts to consumers regarding 
potential adverse events associated with 
certain drugs including crestor in may 
2013 the court granted astrazeneca’s 
motion and dismissed the action as to 
all defendants in july 2013 an amended 
motion to certify a claim as a class action 
and statement of claim containing 
substantially similar allegations to those in 
the first action were filed in the same court 
against the same defendants 
nexium esomeprazole magnesium
consumer litigation 
currently there are no active cases among 
the various putative class actions filed in the 
us alleging that astrazeneca’s promotion 
advertising and pricing of nexium to 
physicians consumers and third party 
payers was unfair unlawful and deceptive 
in regard to the massachusetts state court 
case in august 2013 the court ordered final 
approval of the class settlement agreement 
and dismissal of the matter in regard to the 
delaware state court case an action that 
has been stayed since 2005 in december 
2013 the court denied astrazeneca’s 
motion to dismiss the matter for failure to 
prosecute astrazeneca anticipates that 
the stay of the case will be lifted in the first 
quarter of 2014 
settlement antitrust litigation 
astrazeneca is one of several defendants 
in a now consolidated mdl proposed class 
action and individual lawsuits alleging that 
astrazeneca’s settlements of certain 
patent litigation in the us relating to nexium 
violated us antitrust law and various state 
laws the lawsuits were first filed in august 
2012 astrazeneca firmly believes that 
plaintiffs’ allegations are without merit 
product liability litigation 
byettabydureon exenatide
amylin pharmaceuticals llc a wholly
owned subsidiary of astrazeneca is a 
defendant in 272 filed lawsuits in various 
federal and state courts in the us involving 
a total of 442 plaintiffs claiming physical 
injury from treatment with byetta or bydureon 
the lawsuits allege multiple types of injuries 
including pancreatitis pancreatic cancer and 
thyroid cancer a multidistrict litigation has 
been established in the us district court for 
the southern district of california in regard 
to the alleged pancreatic cancer cases 
in federal courts further a coordinated 
proceeding has been established in 
los angeles california in regard to the 
various lawsuits in california state courts 
a trial involving a single plaintiff alleging 
pancreatitis caused by byetta is scheduled 
for 18 february 2014 in the california state 
court coordinated proceeding
crestor rosuvastatin calcium
astrazeneca is defending 26 lawsuits in 
california state courts involving a total of 
708 plaintiffs claiming physical injury from 
treatment with crestor the lawsuits 
allege multiple types of injuries including 
diabetes mellitus various cardiac injuries 
rhabdomyolysis and liver and kidney 
injuries twenty one cases have been 
consolidated into one coordinated 
proceeding in los angeles california
iressa gefitinib 
between 2004 and 2008 seven claims were 
filed against astrazeneca in japan in the 
osaka and tokyo district courts district 
courts alleging that iressa caused a fatal 
incidence of interstitial lung disease in 
japanese patients in november 2011 and in 
may 2012 the tokyo and osaka high courts 
reversed the district courts’ decisions and 
ruled that neither astrazeneca nor the 
japanese ministry of health labour and 
welfare mhlw had any liability for any  
of the claims the plaintiffs appealed 
both decisions to the japanese supreme 
court supreme court in april 2013 the 
supreme court issued decisions to reject 
appeals against astrazeneca in all respects 
appeals against mhlw were also rejected 
by the supreme court
nexium esomeprazole magnesium
astrazeneca has been defending product 
liability lawsuits brought by approximately 
1900 plaintiffs who allege that nexium 
caused bone deterioration loss of bone 
density andor bone fractures approximately 
1700 of these plaintiffs’ claims have been 
consolidated for pretrial proceeding in the 
us district court for the central district of 
california through the multidistrict litigation 
mdl process in november 2013 the 
mdl court dismissed the claims of 1104 
25 commitments and contingent 
liabilities continued astrazeneca annual report and form 20f information 2013 181
on 10 december 2013 astrazeneca and 
the other defendants filed numerous motions 
for summary judgment and motions 
challenging certain of plaintiffs’ expert 
witnesses plaintiffs filed numerous motions 
challenging expert witnesses proposed by 
the defendants on 30 december 2013 the 
court issued an oral ruling striking certain 
experts subject to reconsideration prior to 
or at trial in january 2014 the court issued 
an oral ruling striking additional plaintiff 
expert witnesses and oral and written orders 
denying certain of the summary judgment 
motions several summary judgment motions 
remain under consideration a trial on certain 
factual issues in this matter is currently 
scheduled to commence in march 2014 
seroquel xr quetiapine fumarate
of the various state law claims brought 
by state attorneys general generally 
alleging that astrazeneca made false and
or misleading statements in marketing 
and promoting seroquel xr astrazeneca 
remains in litigation with the attorney general 
of mississippi 
synagis palivizumab
in september 2011 medimmune filed an 
action against abbvie inc abbvie formerly 
abbott international llc in the circuit court 
for montgomery county maryland seeking 
a declaratory judgment in a contract dispute 
abbvie’s motion to dismiss was granted 
in september 2011 abbvie filed a parallel 
action against medimmune in the illinois 
state court abbvie’s motion to hold the 
disputed funds in escrow was rejected 
in february 2012 the court denied 
medimmune’s motion to dismiss
toprolxl metoprolol succinate 
astrazeneca was defending antitrust 
claims in the us regarding the listing and 
enforcement of patents protecting toprolxl 
in march 2013 the us district court for the 
district of delaware entered an order and 
final judgment approving astrazeneca’s 
settlement agreement with the endpayers 
for which a provision was taken in 2012 
there are no further pending claims
other commercial litigation 
average manufacturer’s price  
qui tam litigation streck
astrazeneca is one of several manufacturers 
named as a defendant in a lawsuit filed in 
the us federal court in philadelphia under 
the qui tam whistleblower provisions of the 
federal and certain state false claims acts 
alleging inaccurate reporting of average 
manufacturer’s prices to the centers 
for medicare and medicaid services 
the action was initially filed in october 2008 
but remained under seal until may 2011 
following the us government’s decision 
not to intervene in the case with regard 
to certain manufacturers including 
astrazeneca as to astrazeneca the court 
dismissed plaintiffs’ claims both state and 
federal for all average manufacturer price 
submissions made before 1 january 2007 
but denied astrazeneca’s motion to dismiss 
all claims regarding submissions made 
after 1 january 2007
average wholesale price awp litigation
of the various lawsuits against astrazeneca 
and other pharmaceutical manufacturers 
involving allegations that by causing the 
publication of allegedly inflated wholesale 
list prices defendants caused entities to 
overpay for prescription drugs astrazeneca 
remains in litigation with the attorneys 
general of the states of utah and wisconsin
astrazeneca successfully appealed a 
20m jury verdict entered against it in 
litigation brought by the commonwealth of 
kentucky the kentucky supreme court 
declined to hear the commonwealth’s 
appeal in september 2013 the kentucky 
trial court entered final judgment in favour 
of astrazeneca
drug importation and antitrust litigation 
in august 2004 californian retail pharmacy 
plaintiffs filed an action in the superior 
court of california alleging a conspiracy 
by astrazeneca and other pharmaceutical 
manufacturer defendants to set the price 
of drugs sold in california at or above 
the canadian sales price for those drugs 
and otherwise restrict the importation of 
pharmaceuticals into the us in april 2013 
following the denial by the california 
supreme court to hear an appeal of the 
lower court’s decisions in astrazeneca’s 
favour the plaintiffs filed a writ of certiorari 
to the us supreme court seeking an 
appeal which was denied in june 2013
medco qui tam litigation schumann 
the us district court for the eastern district 
of pennsylvania district court dismissed a 
qui tam whistleblower lawsuit filed against 
astrazeneca that was based upon 
allegations that astrazeneca submitted 
false pricing information to the government 
and made improper payments intended to 
influence the formulary status of prilosec 
and nexium to medco and its customers 
in violation of the federal and certain state 
false claim acts in february 2013 
the plaintiff filed a notice of appeal to the 
us court of appeals for the third circuit 
regarding the district court’s decision to 
dismiss astrazeneca from the litigation 
with prejudice
shionogi arbitration crestor 
royalty calculation
in july 2012 shionogi  co ltd shionogi 
initiated arbitration proceedings to resolve 
issues relating to the treatment of certain 
excise taxes and other specific items in the 
calculation of royalties on crestor sales 
in december 2013 astrazeneca and 
shionogi announced the full resolution 
of the arbitration proceedings
and we are confident that our settlement 
agreements fully comply with applicable law 
astrazeneca will continue to vigorously 
contest plaintiffs’ factual allegations legal 
theories and assertion of damages
plaintiffs seek damages subject to trebling 
under federal law and some state laws 
based on the difference between the price 
the alleged classes paid for nexium and 
the price they claim they would have 
paid for generic esomeprazole beginning 
in april 2008 and several other later 
alternative dates to the present plaintiffs 
have indicated that based on certain factual 
assumptions they believe the range of 
possible damages for the proposed classes 
prior to trebling is in the range of 97bn 
to 271bn astrazeneca believes that 
the plaintiffs’ damages scenarios are 
speculative contrary to fact and without 
merit and are not a reasonable estimate 
of the expected financial effect if any 
that will result from ultimate resolution of 
the proceedings further legal procedural 
evidentiary and potentially dispositive 
rulings by the courts could significantly 
impact the range of possible damages 
plaintiffs ultimately may be able to seek 
if any no provision has been taken in 
respect of this matter
in september 2013 after having heard oral 
argument in april 2013 the us district court 
for the district of massachusetts the court 
which is hearing the consolidated mdl 
proceeding issued a memorandum and 
order denying defendants’ motion to dismiss 
with respect to certain of plaintiffs’ claims 
and granting in part and denying in part 
defendants’ motion to dismiss regarding 
other claims 
in november 2013 the court granted the 
endpayers’ motion for class certification 
and in december 2013 the court granted 
the direct purchasers’ motion for class 
certification astrazeneca and the other 
defendants have filed petitions seeking 
appellate review of both decisions 
in november 2013 the court denied 
astrazeneca and ranbaxy pharmaceuticals 
inc ranbaxy inc and ranbaxy laboratories 
ltd’s together ranbaxy motion for 
summary judgment on the grounds that 
the plaintiffs’ claims with respect to the 
2008 settlement agreement are barred 
by the fouryear statute of limitations 
on 4 december 2013 the court denied 
astrazeneca and ranbaxy’s motion for 
reconsideration of that decision astrazeneca 
has filed a petition seeking appellate review 
of the denial of this motion in connection with 
a review of the class certification rulings
25 commitments and contingent 
liabilities continued
strategic report corporate governance additional information financial statements financial statements  notes to the group financial statements
astrazeneca annual report and form 20f information 2013 182
government investigationsproceedings 
except as otherwise noted the precise 
parameters of the following inquiries are 
unknown and astrazeneca is not in a 
position at this time to predict the scope 
duration or outcome of these matters 
including whether they will result in any 
liability to astrazeneca
brilinta ticagrelor 
in october 2013 astrazeneca received 
a civil investigative demand from the us 
department of justice civil division seeking 
documents and information regarding plato 
a clinical trial about brilinta astrazeneca  
is cooperating with the inquiry
nexium esomeprazole magnesium
department of justiceattorney general 
of texas investigation
astrazeneca received a subpoena from the 
department of justice and a civil investigative 
demand issued by the attorney general of 
texas in connection with an investigation of 
the possible submission of false or otherwise 
improper pricing information for certain 
formulations of nexium to the centers for 
medicare and medicaid services in march 
2013 the federal case was dismissed with 
prejudice as to the relator with the consent 
of the government and without prejudice 
to the us government in addition the state 
case has been dismissed with prejudice as 
to the relator and without prejudice to the 
state of texas 
seroquel ir quetiapine fumarate and 
seroquel xr quetiapine fumarate
us attorney’s office investigations
in september 2013 astrazeneca received 
a subpoena duces tecum from the us 
attorney’s office in boston seeking 
documents and information related to the 
safety profile of seroquel astrazeneca is 
cooperating with this inquiry 
in july 2012 astrazeneca received a civil 
investigative demand from the office of 
the attorney general for the state of texas 
in connection with an investigation related 
to sales and marketing activities potentially 
involving seroquel astrazeneca is 
cooperating with this inquiry
the us department of justice is 
conducting an investigation related to sales 
and marketing activities involving seroquel 
xr in response to the filing of qui tam 
whistleblower lawsuits in january  
2014 astrazeneca was advised that  
the department of justice and all of the 
states except for the state of texas intend 
to file a notice of nonintervention in the 
federal case 
synagis palivizumab
in june 2011 medimmune received a 
demand from the us attorney’s office for 
the southern district of new york requesting 
certain documents related to the sales  
and marketing activities of synagis in july 
2011 medimmune received a similar court 
order to produce documents from the 
office of the attorney general for the state 
of new york medicaid and fraud control 
unit pursuant to what the government 
attorneys advised was a joint investigation 
medimmune has accepted receipt of these 
requests and is coordinating with the 
government offices to provide the 
appropriate responses and cooperate 
with any related investigation
in may 2012 medimmune received a 
subpoena duces tecum from the office of 
attorney general for the state of florida 
medicaid and fraud control unit requesting 
certain documents related to the sales and 
marketing activities of synagis medimmune 
has accepted receipt of the request and is 
coordinating with the florida government 
to provide the appropriate responses and 
cooperate with any related investigation 
astrazeneca is unaware of the nature or 
focus of the investigation however based 
on the nature of the requests it appears  
to be similar to the inquiries from the state 
of new york and department of justice 
which is described above
other us attorney’s offices investigations
the us attorney’s offices in alabama 
delaware and texas along with the us 
department of justice are conducting 
investigations related to sales and marketing 
activities involving crestor and seroquel 
in january 2014 astrazeneca was advised 
that the department of justice and all of the 
states except for the state of texas intend 
to file a notice of nonintervention in the 
federal case with regard to seroquel
with regard to the crestor investigation 
the us attorney’s offices and all states 
except for the state of texas have declined 
to intervene in the civil component of the 
investigation additional components of the 
investigation by the department of justice 
as well as an investigation by the texas 
office of attorney general continue
dutch national competition 
authority investigation
the dutch national competition 
authority now the acm formerly the 
nma investigation into alleged abuse of a 
dominant position is ongoing the file remains 
with the legal department of the acm and 
astrazeneca expects a decision in 2014
foreign corrupt practices act
in connection with an investigation into 
foreign corrupt practices act issues in  
the pharmaceutical industry astrazeneca 
has received inquiries from the us 
department of justice and the sec 
regarding among other things sales 
practices internal controls certain 
distributors and interactions with healthcare 
providers and other government officials  
in several countries astrazeneca is  
cooperating with these inquiries 
astrazeneca is investigating indications of 
inappropriate conduct in certain countries 
including china resolution of this matter 
could involve the payment of fines andor 
other remedies 
good manufacturing practices subpoena
in march 2013 astrazeneca received 
a subpoena duces tecum from the us 
attorney’s office in boston seeking 
documents and information relating to 
products manufactured or packaged at 
astrazeneca’s macclesfield facility in the uk 
astrazeneca is cooperating with this inquiry
india 
in february 2012 the indian central bureau 
of investigation cbi filed a first information 
report in the court in delhi against 
astrazeneca and public officials of the 
central procurement agency of the delhi 
directorate of health services dhs in 
connection with circumstances surrounding 
the submission by astrazeneca of an 
alleged false affidavit in relation to pricing 
as part of a tender for meronem entered 
into by astrazeneca with the dhs in 2009 
the cbi has now concluded its investigation 
and a charge sheet was filed with the court 
in august 2013 but neither astrazeneca 
nor any astrazeneca employee has been 
charged with any offence 
medco
the us attorney’s office for the district of 
delaware criminal division is conducting 
an investigation relating to astrazeneca’s 
relationship with medco and sales of nexium 
plendil prilosec and toprolxl in addition 
the us attorney’s office for the district of 
delaware and the department of justice 
are investigating potential civil claims 
relating to the same conduct 
serbia
in august 201 1 astrazeneca’s representative 
office in belgrade serbia the representative 
office was served with a criminal indictment 
alleging that local employees of astrazeneca 
and several other pharmaceutical companies 
made allegedly improper payments to 
physicians at the institute of oncology and 
radiology of serbia in december 2013 the 
representative office reached an agreement 
with the serbian prosecutor pursuant 
to which the prosecutor dismissed the 
indictment a provision has been taken
additional government inquiries
as is true for most if not all major 
prescription pharmaceutical companies 
operating in the us astrazeneca is currently 
involved in multiple us federal and state 
inquiries into drug marketing and pricing 
practices in addition to the investigations 
described above various federal and state 
law enforcement offices have from time 
to time requested information from the 
company there have been no material 
developments in those matters
25 commitments and contingent 
liabilities continued astrazeneca annual report and form 20f information 2013 183
25 commitments and contingent 
liabilities continued
may reduce in the future to the extent that 
any tax authority challenge is unsuccessful 
or matters lapse following expiry of the 
relevant statutes of limitation resulting in a 
reduction in the tax charge in future periods
other tax contingencies 
included in the tax accrual is 2053m 
relating to a number of other tax 
contingencies an increase of 207m mainly 
due to the impact of an additional year of 
transactions relating to contingencies for 
which accruals had already been established 
and exchange rate effects for these tax 
exposures astrazeneca does not expect 
material additional losses it is however 
possible that some of these contingencies 
may reduce in the future if any tax authority 
challenge is unsuccessful or matters lapse 
following expiry of the relevant statutes of 
limitation resulting in a reduction in the tax 
charge in future periods 
timing of cash flows and interest 
it is not possible to estimate the timing of 
tax cash flows in relation to each outcome 
however it is anticipated that a number of 
significant disputes may be resolved over 
the next one to two years included in the 
provision is an amount of interest of 344m 
2012 248m 2011 291m interest is 
accrued as a tax expense
tax contingencies require management to 
make estimates and judgements with respect 
to the ultimate outcome of a tax audit 
and actual results could vary from these 
estimates the international tax environment 
presents increasingly challenging dynamics 
for the resolution of transfer pricing disputes 
these disputes usually result in taxable 
profits being increased in one territory 
and correspondingly decreased in another 
our balance sheet positions for these 
matters reflect appropriate corresponding 
relief in the territories affected management 
considers that at present such corresponding 
relief will be available but given the challenges 
in the international tax environment will keep 
this aspect under careful review
management continues to believe that 
astrazeneca’s positions on all its transfer 
pricing audits and disputes are robust and 
that astrazeneca is appropriately provided 
for transfer pricing audits where astrazeneca 
and the tax authorities are in dispute 
astrazeneca estimates the potential for 
reasonably possible additional losses above 
and beyond the amount provided to be up 
to 529m 2012 522m 2011 375m 
however management believes that it is 
unlikely that these additional losses will arise 
it is possible that some of these contingencies 
tax
where tax exposures can be quantified 
an accrual is made based on best estimates 
and management’s judgement details of 
the movements in relation to material tax 
exposures are discussed below as accruals 
can be built up over a long period of time 
but the ultimate resolution of tax exposures 
usually occurs at a point in time and given 
the inherent uncertainties in assessing the 
outcomes of these exposures which 
sometimes can be binary in nature we could 
in future periods experience adjustments 
to these accruals that have a material 
positive or negative effect on our results in 
any particular period
transfer pricing and other international 
tax contingencies
the total net accrual included in the group 
financial statements to cover the worldwide 
exposure to transfer pricing audits is 523m 
an increase of 100m compared to 2012
astrazeneca faces a number of transfer 
pricing audits in jurisdictions around the 
world and in some cases is in dispute 
with the tax authorities the issues under 
discussion are often complex and can 
require many years to resolve accruals for 
26 operating leases
total rentals under operating leases charged to profit were as follows
2013
m
2012
m
2011
m
operating leases 188 197 215
the future minimum lease payments under operating leases that have initial or remaining terms in excess of one year at 31 december 
2013 were as follows
2013
m
2012
m
2011
m
obligations under leases comprise
not later than one year 92 102 92
later than one year and not later than five years 248 223 178
later than five years 110 109 122
total future minimum lease payments 450 434 392
strategic report corporate governance additional information financial statements financial statements  notes to the group financial statements
astrazeneca annual report and form 20f information 2013 184
27 statutory and other information
2013
m
2012
m
2011
m
fees payable to kpmg audit plc and its associates
group audit fee 22 22 24
fees payable to kpmg audit plc and its associates for other services
the audit of subsidiaries pursuant to legislation 50 50 55
auditrelated assurance services 26 22 24
tax compliance services 06 08 08
tax advisory services – 01 01
other assurance services 06 11 25
corporate finance services 05 – –
fees payable to kpmg audit plc in respect of the group’s pension schemes
the audit of subsidiaries’ pension schemes 04 05 06
119 119 143
auditrelated assurance services include fees of 17m 2012 17m 2011 19m in respect of section 404 of the sarbanesoxley act
related party transactions
the group had no material related party transactions which might reasonably be expected to influence decisions made by the users  
of these financial statements
key management personnel compensation
key management personnel are defined for the purpose of disclosure under ias 24 ‘related party disclosures’ as the members of the 
board and the members of the set
2013
’000
2012
’000
2011
’000
shortterm employee benefits 25029 19451 19973
postemployment benefits 2323 2137 2155
termination benefits 3855 1672 –
sharebased payments 16509 15304 16064
47716 38564 38192
total remuneration is included within employee costs see note 24 further details of directors’ emoluments are included in the directors’ 
remuneration report from pages 102 to 126
28 subsequent events
acquisition of bristolmyers squibb’s share of global diabetes alliance assets
on 1 february 2014 astrazeneca completed the acquisition of bms’s interests in the companies’ diabetes alliance the acquisition provides 
astrazeneca with 100 ownership of the intellectual property and global rights for the development manufacture and commercialisation 
of the diabetes business which includes onglyza saxagliptin kombiglyze xr saxagliptin and metformin hcl extended release 
komboglyze saxagliptin and metformin hcl farxiga dapagliflozin marketed as forxiga outside the us byetta exenatide bydureon 
exenatide extended release for injectable suspension metreleptin and symlin pramlintide acetate
the transaction consolidates worldwide ownership of the diabetes business within astrazeneca leveraging its primary and specialty care 
capabilities and its geographical reach especially in emerging markets the transaction included the acquisition of 100 of the share 
capital of amylin pharmaceuticals llc and the asset purchase of the additional intellectual property and global rights not already owned 
by astrazeneca for the development manufacture and commercialisation of onglyza kombiglyze xr komboglyze and farxiga in total 
approximately 3900 bms employees are expected to transfer as part of the acquisition this combination of intangible product rights 
and manufacturing assets with an established workforce and their associated operating processes principally those related to the 
global manufacturing and selling and marketing operations requires that the acquisition is accounted for as a business combination in 
accordance with ifrs 3 business combinations
upfront consideration for the acquisition of 27bn was paid on 1 february 2014 with further payments of up to 14bn being payable 
for future regulatorylaunch and salesrelated milestones astrazeneca has also agreed to pay various salesrelated royalty payments 
up until 2025 the amount of royalties payable under the agreement is inherently uncertain and difficult to predict given the direct link 
to future sales and the range of outcomes cannot be reliably estimated the maximum amount payable in each year is with reference 
to net sales and is therefore theoretically unlimited until royalties cease in 2025 astrazeneca may also make payments up to 225m 
when certain additional assets are subsequently transferred contingent consideration has been fair valued using decision tree analysis 
with key inputs including the probability of success and consideration of potential delays in accordance with ifrs 3 the fair value of 
contingent consideration including future royalties is recognised immediately as a liability
in addition to the acquired interests astrazeneca has entered into certain agreements with bms to maintain the manufacturing and 
supply chain of the full portfolio of diabetes products bms will also continue to deliver specified clinical trials in line with the ongoing 
clinical trial plan with an agreed number of rd and manufacturing employees dedicated to diabetes remaining with bms to progress 
the diabetes portfolio and support the transition for these areas these arrangements will be carried out over future periods and future 
payments by astrazeneca to bms in relation to these arrangements will be expensed as incurred no amounts have been recognised in 
the initial acquisition accounting in relation to these arrangements but have been separated at fair value from the business combination 
accounting in accordance with ifrs 3  astrazeneca annual report and form 20f information 2013 185
28 subsequent events continued
the terms of the agreement partially reflect settlement of the launch and salesrelated milestones under the preexisting onglyza and 
farxiga collaboration agreements which have been terminated in relation to the acquisition the expected value of those preexisting 
milestones is 03bn and has been recognised as a separate component of consideration and excluded from the business combination 
accounting in accordance with ifrs 3 separate intangible assets will be recognised
goodwill of 16bn is underpinned by a number of elements which individually cannot be quantified most significant among these are 
the synergies astrazeneca expect to be able to generate through more efficient manufacturing processes and the incremental value 
accessible through strategic and operational independence upon taking full control of the alliance 
the fair value of receivables acquired as part of the acquisition approximates the gross contractual amounts receivable there are no 
significant amounts which are not expected to be collected
the results from the additional acquired interests in the diabetes alliance will be consolidated into the company’s results from 
1 february 2014
if the acquisition had taken effect at the beginning of the reporting period 1 january 2013 on a pro forma basis the revenue of the 
combined group for 2013 would have been 26700m and the profit after tax would have been 1750m this pro forma information 
has been prepared taking into account any amortisation interest costs and related tax effects but does not purport to represent the 
results of the combined group that actually would have occurred had the acquisition taken place on 1 january 2013 and should not  
be taken to be representative of future results
given the proximity of the completion of the transaction to the date that the financial statements were approved the finalisation of  
the accounting entries for this transaction has yet to be completed our provisional assessment of the fair values of the assets and 
liabilities acquired and of the fair value of the consideration payable is detailed below our assessment will be completed in 2014
fair value
m
noncurrent assets
intangible assets 5762
tangible assets 490
6252
current assets 478
current liabilities 262
noncurrent liabilities 130
total assets acquired 6338
goodwill 1565
fair value of total consideration 7903
less fair value of contingent consideration 5205
total upfront consideration 2698
less cash and cash equivalents acquired –
net cash outflow 2698
acquisition related costs are expected to be immaterial
strategic report corporate governance additional information financial statements financial statements  notes to the group financial statements
astrazeneca annual report and form 20f information 2013 186
at 31 december 2013 country percentage of voting share capital held principal activity
uk
astrazeneca uk limited england 100 research and development manufacturing marketing
astrazeneca treasury limited england 100 treasury
continental europe
astrazeneca dunkerque production scs france 100 manufacturing
astrazeneca sas france 100 research manufacturing marketing
astrazeneca gmbh germany 100 development manufacturing marketing
astrazeneca holding gmbh germany 100 manufacturing marketing
astrazeneca spa italy 100 marketing
astrazeneca farmaceutica spain sa spain 100 marketing
astrazeneca ab sweden 100 research and development manufacturing marketing
astrazeneca bv netherlands 100 marketing
llc astrazeneca pharmaceuticals russia 100 marketing
the americas
astrazeneca do brasil limitada brazil 100 manufacturing marketing
astrazeneca canada inc canada 100 research marketing
az reinsurance limited cayman islands 100 insurance and reinsurance underwriting
ipr pharmaceuticals inc puerto rico 100 development manufacturing marketing
astrazeneca lp us 99 research and development manufacturing marketing
astrazeneca pharmaceuticals lp us 100 research and development manufacturing marketing
zeneca holdings inc us 100 manufacturing marketing
medimmune llc us 100 research and development manufacturing marketing
asia africa  australasia
astrazeneca pty limited australia 100 development manufacturing marketing
astrazeneca pharmaceuticals co limited china 100 research and development manufacturing marketing
az wuxi trading co limited china 100 marketing
astrazeneca kk japan 80 manufacturing marketing
all shares are held indirectly
the companies and other entities listed above are those whose results or financial position principally affected the figures shown in the 
group financial statements a full list of subsidiaries joint ventures and associates will be annexed to the company’s next annual return 
filed with the registrar of companies the country of registration or incorporation is stated alongside each company the accounting 
year ends of subsidiaries and associates are 31 december astrazeneca operates through 185 subsidiaries worldwide products are 
manufactured in 17 countries worldwide and are sold in over 100 countries the group financial statements consolidate the financial 
statements of the company and its subsidiaries at 31 december 2013
principal subsidiaries astrazeneca annual report and form 20f information 2013 187
opinions and conclusions 
arising from our audit
1 our opinion on the parent company 
financial statements is unmodified 
we have audited the parent company 
financial statements of astrazeneca plc 
for the year ended 31 december 2013 set 
out on pages 188 to 192 in our opinion  
the parent company financial statements 
  give a true and fair view of the 
state of the company’s affairs 
as at 31 december 2013
  have been properly prepared in 
accordance with uk accounting 
standards and 
  have been prepared in accordance 
with the requirements of the 
companies act 2006 
2 our opinion on other matters 
prescribed by the companies act 
2006 is unmodified 
in our opinion 
  the part of the directors’ remuneration 
report to be audited has been properly 
prepared in accordance with the 
companies act 2006 and
  the information given in the strategic 
report and the directors’ report 
for the financial year for which the 
financial statements are prepared is 
consistent with the parent company 
financial statements
3 we have nothing to report in respect 
of the matters on which we are required 
to report by exception 
the companies act 2006 requires us to 
report to you if in our opinion 
  adequate accounting records have not 
been kept by the parent company or 
returns adequate for our audit have not 
been received from branches not visited 
by us or 
  the parent company financial statements 
and the part of the directors’ remuneration 
report to be audited are not in agreement 
with the accounting records and returns or 
  certain disclosures of directors’ 
remuneration specified by law are 
not made or 
  we have not received all the information 
and explanations we require for our audit
we have nothing to report in respect of the 
above responsibilities
4 other matter – we have 
reported separately on the 
group financial statements 
we have reported separately on the group 
financial statements of astrazeneca plc 
for the year ended 31 december 2013 
scope and responsibilities 
as explained more fully in the directors’ 
responsibilities statement set out on 
page 127  the directors are responsible 
for the preparation of the parent company 
financial statements and for being 
satisfied that they give a true and fair view 
a description of the scope of an audit of 
financial statements is provided on the 
financial reporting council’s website at 
wwwfrcorgukauditscopeukprivate 
this report is made solely to the company’s 
members as a body and is subject to 
important explanations and disclaimers 
regarding our responsibilities published 
on our website wwwkpmgcomuk
auditscopeukco2013a which are 
incorporated into this report as if set out 
in full and should be read to provide an 
understanding of the purpose of this 
report the work we have undertaken 
and the basis of our opinions
antony cates
senior statutory auditor
for and on behalf of kpmg audit plc 
statutory auditor 
chartered accountants 
15 canada square london e14 5gl
6 february 2014
independent auditor’s report to the members of astrazeneca plc
strategic report corporate governance additional information financial statements financial statements
astrazeneca annual report and form 20f information 2013 188
astrazeneca plc
notes
2013
m
2012
m 
fixed assets
fixed asset investments 1 27269 25349
current assets
debtors – other 14 3
debtors – amounts owed by group undertakings 7713 6589
7727 6592
creditors amounts falling due within one year
nontrade creditors 2 957 956
interestbearing loans and borrowings 3 750 –
1707 956
net current assets 6020 5636
total assets less current liabilities 33289 30985
creditors amounts falling due after more than one year
amounts owed to group undertakings 3 283 283
interestbearing loans and borrowings 3 8052 8742
8335 9025
net assets 24954 21960
capital and reserves
calledup share capital 6 315 312
share premium account 4 3983 3504
capital redemption reserve 4 153 153
other reserves 4 2847 2904
profit and loss account 4 17656 15087
shareholders’ funds 5 24954 21960
m means millions of us dollars
the company financial statements from page 188 to 192 were approved by the board on 6 february 2014 and were signed on its 
behalf by
pascal soriot marc dunoyer
director  director
company’s registered number 2723534
company balance sheet
at 31 december astrazeneca annual report and form 20f information 2013 189
basis of accounting
the company financial statements are 
prepared under the historical cost convention 
in accordance with the companies act 
2006 and uk gaap  the group financial 
statements are presented on pages 132  
to 186 and have been prepared in 
accordance with ifrss as adopted by  
the eu and as issued by the iasb and in 
accordance with the group accounting 
policies set out on pages 136 to 140
the following paragraphs describe the 
main accounting policies under uk gaap 
which have been applied consistently
accounting standards issued 
but not yet adopted
frs 102 ‘the financial reporting standard 
applicable in the uk and the republic of 
ireland’ has been issued but not yet adopted 
by the company it is effective for accounting 
periods beginning on or after 1 january 2015
foreign currencies
profit and loss account items in foreign 
currencies are translated into us dollars at 
average rates for the relevant accounting 
periods assets and liabilities are translated 
at exchange rates prevailing at the date of 
the company balance sheet exchange 
gains and losses on loans and on short
term foreign currency borrowings and 
deposits are included within net interest 
payable exchange differences on all other 
transactions except relevant foreign currency 
loans are taken to operating profit
taxation
the charge for taxation is based on the 
result for the year and takes into account 
taxation deferred because of timing 
differences between the treatment of certain 
items for taxation and for accounting 
purposes full provision is made for the 
effects of these differences deferred tax 
assets are recognised where it is more 
likely than not that the amount will be 
realised in the future these estimates 
require judgements to be made including 
the forecast of future taxable income 
deferred tax balances are not discounted
accruals for tax contingencies require 
management to make judgements and 
estimates in relation to tax audit issues 
tax benefits are not recognised unless the 
tax positions will probably be sustained 
once considered to be probable 
management reviews each material tax 
benefit to assess whether a provision should 
be taken against full recognition of that 
benefit on the basis of potential settlement 
through negotiation andor litigation
any recorded exposure to interest on tax 
liabilities is provided for in the tax charge 
all provisions are included in creditors due 
within one year
investments
fixed asset investments including 
investments in subsidiaries are stated at 
cost less any provision for impairment
sharebased payments
the issuance by the company to employees 
of its subsidiaries of a grant of awards over 
the company’s shares represents additional 
capital contributions by the company to 
its subsidiaries an additional investment 
in subsidiaries results in a corresponding 
increase in shareholders’ equity the 
additional capital contribution is based on 
the fair value of the grant issued allocated 
over the underlying grant’s vesting period 
less the market cost of shares charged to 
subsidiaries in settlement of such share 
awards
financial instruments
loans and other receivables are held at 
amortised cost longterm loans payable 
are held at amortised cost
litigation
through the normal course of business 
astrazeneca is involved in legal disputes 
the settlement of which may involve cost  
to the company provision is made where 
an adverse outcome is probable and 
associated costs can be estimated reliably 
in other cases appropriate descriptions 
are included
company accounting policies
strategic report corporate governance additional information financial statements financial statements 
astrazeneca annual report and form 20f information 2013 190
1 fixed asset investments
investments in subsidiaries
shares
m
loans
m
total
m
at 1 january 2013 16327 9022 25349
additions – 2664 2664
transfer to current assets – 747 747
capital reimbursement 56 – 56
exchange – 56 56
amortisation – 3 3
at 31 december 2013 16271 10998 27269
a list of principal subsidiaries is included on page 186
2 nontrade creditors
2013
m
2012
m
amounts due within one year
shortterm borrowings unsecured 789 792
other creditors 161 158
amounts owed to group undertakings 7 6
957 956
3 loans
repayment
dates
2013
m
2012
m
amounts due within one year
interestbearing loans and borrowings unsecured
54 callable bond us dollars 2014 750 –
amounts due after more than one year
amounts owed to subsidiaries unsecured
72 loan us dollars 2023 283 283
interestbearing loans and borrowings unsecured
54 callable bond us dollars 2014 – 749
5125 noncallable bond euros 2015 1035 990
59 callable bond us dollars 2017 1746 1745
195 callable bond us dollars 2019 996 995
575 noncallable bond pounds sterling 2031 573 561
645 callable bond us dollars 2037 2717 2717
4 callable bond us dollars 2042 985 985
8052 8742
2013
m
2012
m
loans or instalments thereof are repayable
after five years from balance sheet date 5554 5541
from two to five years 1746 2735
from one to two years 1035 749
within one year 750 –
total unsecured 9085 9025
all loans are at fixed interest rates accordingly the fair values of the loans will change as market rates change however since the loans 
are held at amortised cost changes in interest rates and the credit rating of the company do not have any effect on the company’s 
net assets
notes to the company financial statements astrazeneca annual report and form 20f information 2013 191
4 reserves
share
premium
account 
m
capital
redemption
reserve 
m
other
reserves 
m
profit 
and loss
account 
m
2013
total 
m
2012
total 
m
at beginning of year 3504 153 2904 15087 21648 13073
profit for the year – – – 6067 6067 14467
dividends – – – 3499 3499 3619
amortisation of loss on cash flow hedge – – – 1 1 1
sharebased payments – – 57 – 57 79
share repurchases – – – – – 2621
issue of astrazeneca plc ordinary shares 479 – – – 479 426
at end of year 3983 153 2847 17656 24639 21648
distributable reserves at end of year – – 1841 17656 19497 16928
as permitted by section 4084 of the companies act 2006 the company has not presented its own profit and loss account
at 31 december 2013 17 656m 2012 15087m of the profit and loss account reserve was available for distribution included in other 
reserves is a special reserve of 157m arising on the redenomination of share capital in 1999 
included within other reserves at 31 december 2013 is 1006m 2012 1063m in respect of cumulative sharebased payment awards 
these amounts are not available for distribution
5 reconciliation of movement in shareholders’ funds
2013
m
2012
m
at beginning of year 21960 13396
net profit for the financial year 6067 14467
dividends 3499 3619
amortisation of loss on cash flow hedge 1 1
sharebased payments 57 79
issue of astrazeneca plc ordinary shares 482 429
repurchase of astrazeneca plc ordinary shares – 2635
net increase in shareholders’ funds 2994 8564
shareholders’ funds at end of year 24954 21960
details of dividends paid and payable to shareholders are given in note 21 to the group financial statements
6 share capital
allotted calledup and fully paid
2013
m
2012
m
issued ordinary shares 025 each 315 312
redeemable preference shares £1 each – £50000 – –
315 312
the redeemable preference shares carry limited class voting rights and no dividend rights this class of shares is capable of redemption 
at par at the option of the company on the giving of seven days’ written notice to the registered holder of the shares
the movements in share capital during the year can be summarised as follows
no of shares m
at 1 january 2013 1246779548 312
issues of shares 10390539 3
at 31 december 2013 1257170087 315
share repurchases
no ordinary shares were repurchased by the company in 2013 2012 57 8m ordinary shares at an average price of 2879 pence 
per share
share option schemes
a total of 104m ordinary shares were issued during the year in respect of share option schemes 2012 122m ordinary shares 
details of directors’ interests in options are shown in the directors’ remuneration report
shares held by subsidiaries
no shares in the company are held by subsidiaries
strategic report corporate governance additional information financial statements financial statements  notes to the company financial statements
astrazeneca annual report and form 20f information 2013 192
7 litigation and environmental liabilities
in addition to those matters disclosed below there are other cases where the company is named as a party to legal proceedings 
these include the seroquel ir product liability litigation and the nexium product liability litigation each of which are described more fully 
in note 25 to the group financial statements
foreign corrupt practices act
in connection with an investigation into foreign corrupt practices act issues in the pharmaceutical industry astrazeneca has received 
inquiries from the us department of justice and the sec regarding among other things sales practices internal controls certain 
distributors and interactions with healthcare providers and other government officials in several countries astrazeneca is cooperating 
with these inquiries astrazeneca is investigating indications of inappropriate conduct in certain countries including china resolution 
of this matter could involve the payment of fines andor other remedies 
dutch national competition authority investigation
the dutch national competition authority now the acm formerly the nma investigation into alleged abuse of a dominant position  
is ongoing the file remains with the legal department of the acm and astrazeneca expects a decision in 2014
other
the company has guaranteed the external borrowing of a subsidiary in the amount of 288m
8 statutory and other information
the directors were paid by another group company in 2013 and 2012 astrazeneca annual report and form 20f information 2013 193
for the year ended 31 december
2009
restated
2
m
2010
restated
2
m
2011
restated
2
m
2012
restated
2
m
2013
m
revenue and profits
revenue 32804 33269 33591 27973 25711
cost of sales 5775 6389 6026 5393 5261
distribution costs 298 335 346 320 306
research and development expense 4409 5318 5523 5243 4821
selling general and administrative costs 11329 10414 11161 9839 12206
profit on disposal of subsidiary – – 1483 – –
other operating income and expense 553 712 777 970 595
operating profit 11546 11525 12795 8148 3712
finance income 74 65 50 42 50
finance expense 858 660 562 544 495
profit before tax 10762 10930 12283 7646 3267
taxation 3255 2880 2333 1376 696
profit for the period 7507 8050 9950 6270 2571
other comprehensive income for the period net of tax 14 85 480 135 113
total comprehensive income for the period 7493 8135 9470 6405 2458
profit attributable to
equity holders of the company 7484 8022 9917 6240 2556
noncontrolling interests 23 28 33 30 15
earnings per share
earnings per 025 ordinary share basic 517 558 729 495 204
earnings per 025 ordinary share diluted 516 555 725 494 204
dividends 209 241 270 285 280
return on revenues
operating profit as a percentage of revenues 352 346 381 291 144
ratio of earnings to fixed charges 212 252 295 199 99
at 31 december
2009
restated
2
m
2010
restated
2
m
2011
restated
2
m
2012
restated
2
m
2013
m
statement of financial position
property plant and equipment goodwill and intangible assets 29422 28986 27267 32435 31846
other investments and noncurrent receivables 446 535 543 940 2513
deferred tax assets 1292 1475 1514 1111 1205
current assets 23760 25131 23506 19048 20335
total assets 54920 56127 52830 53534 55899
current liabilities 17640 16787 15752 13903 16051
noncurrent liabilities 16494 15936 13612 15685 16595
net assets 20786 23404 23466 23946 23253
share capital 363 352 323 312 315
reserves attributable to equity holders 20262 22855 22917 23419 22909
noncontrolling interests 161 197 226 215 29
total equity and reserves 20786 23404 23466 23946 23253
for the year ended 31 december
2009
m
2010
m
2011
m
2012
m
2013
m
cash flows
net cash inflowoutflow from
operating activities 11739 10680 7821 6948 7400
investing activities
1
2444 2226 2022 1859 2889
financing activities
1
3661 7334 9321 4923 3047
5634 1120 3522 166 1464
1
 investing activities and financing activities were restated in 2011 to reclassify cash paid in hedge contracts relating to dividend payments from investing activities to financing activities
2
 restatement on adoption of ias 19 2011 as detailed in group accounting policies
for the purpose of computing the ratio of earnings to fixed charges earnings consist of the income from continuing ordinary activities 
before taxation of group companies and income received from companies owned 50 or less plus fixed charges fixed charges 
consist of interest on all indebtedness amortisation of debt discount and expense and that portion of rental expense representative  
of the interest factor
group financial record
strategic report corporate governance additional information financial statements throughout the development process we strive to obtain patent protection consistent with our patent process as described in the 
intellectual property section from page 72 however until marketing approval in individual countries is obtained it is not possible to 
accurately predict the maximum period of product protection available from any such patents while the most significant uncertainties for 
development pipeline products progressing to launch are meeting development targets and obtaining regulatory marketing approvals as 
detailed in the risk section from page 199 the date and language of any actual marketing approval will crucially determine the length of 
patent term extension and the full range if any of pending patents that will protect the marketed product further details of possible 
periods of patent rdp and related ip protections which may protect pipeline products once marketed are included from page 198
line extensions
compound mechanism area under investigation
date 
commenced 
phase
estimated filing
us eu japan china
cardiovascular
brilintabrilique euclid adp receptor antagonist outcomes study in patients with 
peripheral artery disease
4q 2012 2016 2016 2016 2017 
brilintabrilique  
pegasustimi 54
adp receptor antagonist outcomes study in patients with prior 
myocardial infarction
4q 2010 2015 2015 2015 2017
brilintabrilique socrates
1
adp receptor antagonist outcomes study in patients with 
stroke or tia
1q 2014 2016 2016 2016 2017
brilintabrilique themis adp receptor antagonist outcomes study in patients with 
type 2 diabetes and cad but 
without a previous history of mi  
or stroke
2017 2017 2018 2018
bydureon dual 
chamber pen
glp1 receptor agonist diabetes filed filed 2q 2014
bydureon exscel glp1 receptor agonist outcomes study 2q 2010 2018 2018 2018
bydureon weekly  
suspension
glp1 receptor agonist diabetes 1q 2013 2015 2015
farxigaforxiga
2
  
declare
sglt2 inhibitor outcomes study 2q 2013 2020 2020
kombiglyze xr 
komboglyze fdc
3
dpp4 inhibitormetformin  
fdc
diabetes launched launched filed
onglyza savortimi 53 dpp4 inhibitor outcomes study 2q 2010 1q 2014 1q 2014 2015
saxagliptin 
dapagliflozin fdc 
dpp4 inhibitorsglt2  
inhibitor fdc
diabetes 2q 2012 2015 2015
xigduo sglt2 inhibitormetformin  
fdc
diabetes filed approved 
january 
2014
gastrointestinal
entocort glucocorticoid steroid crohn’s diseaseulcerative colitis launched launched 2015 †
linaclotide

gcc receptor peptide agonist irritable bowel syndrome with 
constipation ibsc
† † † 2015
nexium proton pump inhibitor peptic ulcer bleeding filed
4
launched † launched
neuroscience
diprivan

sedative and anaesthetic conscious sedation launched 2h 2014 launched
oncology 
caprelsa vegfregfr tyrosine kinase 
inhibitor with ret kinase activity
differentiated thyroid cancer 2q 2013 2016 2016 2016
faslodex oestrogen receptor antagonist 1
st
 line advanced breast cancer 4q 2012 2016 2016 2016 2016
iressa egfr tyrosine kinase inhibitor treatment beyond progression 1q 2012 2015 2015 2015
respiratory inflammation and autoimmunity
symbicort
5
inhaled steroidlongacting 
beta 2agonist
breath actuated inhaler asthma
copd
4q 2011
† a third party holds the ip to this molecule in this area
 partnered product
1
 first subject dosed in january 2014 for socrates
2
  farxiga in the us forxiga in rest of world
3
  kombiglyze xr in the us komboglyze fdc in the eu
4
 2
nd
 crl received from fda in 2011 astrazeneca response submitted to fda in december 2012 and application remains under fda review
5
 filing delayed pending evaluation of alternative device design
 
194 astrazeneca annual report and form 20f information 2013
additional information 
development pipeline
as at 31 december 2013 nmes 
phase iiiregistration
compound mechanism area under investigation
date 
commenced 
phase
estimated filing
us eu japan china
cardiovascular 
brilintabrilique adp receptor antagonist arterial thrombosis launched launched filed launched
epanova

omega3 free fatty acids hypertriglyceridaemia filed
farxigaforxiga
1
sglt2 inhibitor diabetes approved 
january 
2014
launched filed filed
metreleptin leptin analogue lipodystrophy filed 2015 †
infection
caz avi caz104

cephalosporinbeta  
lactamase inhibitor 
serious infections 1q 2012 † 4q 2014 2015 2016
caz avi caz104

cephalosporinbeta  
lactamase inhibitor
hospitalacquired pneumonia
ventilatorassociated pneumonia
2q 2013 † 2017 2017
zinforo ceftaroline

 extended spectrum cephalosporin 
with affinity to penicillinbinding 
proteins 
pneumoniaskin infections † launched † 1h 2014
neuroscience
naloxegol nktr118

oral peripherallyacting muopioid 
receptor antagonist
opioidinduced constipation filed filed
oncology 
caprelsa vegfregfr tyrosine kinase 
inhibitor with ret kinase activity
medullary thyroid cancer launched launched 3q 2014 filed
moxetumomab  
pasudotox

anticd22 recombinant  
immunotoxin
hairy cell leukaemia 2q 2013 2018 2018
olaparib parp inhibitor gbrcam psr ovarian cancer 1q 2014 filed
olaparib solo1 parp inhibitor 1
st
 line gbrcam ovarian cancer 3q 2013 2017 2017 2017 2017
olaparib solo2 parp inhibitor gbrcam psr ovarian cancer 3q 2013 2016 2016 2016 2016
olaparib gold parp inhibitor 2
nd
 line gastric cancer 3q 2013 2017 2018
selumetinib azd6244 
arry142886

mek inhibitor 2
nd
 line kras  nsclc 4q 2013 2017 2017
respiratory  inflammation and autoimmunity
benralizumab

antiil 5r mab severe asthma 4q 2013 2016 2016
brodalumab

antiil 17r mab psoriasis 3q 2012 2015 2015
lesinurad selective inhibitor of urat1 chronic management of 
hyperuricaemia in patients  
with gout
4q 2011 2h 2014 2h 2014 2017
pt003 gff lamalaba copd 2q 2013 2015 2016
† a third party holds the ip to this molecule in this area 
 partnered product
1
 farxiga in the us forxiga in rest of world 
nmes 
phases i and ii
compound mechanism area under investigation phase
date 
commenced 
phase
estimated filing
us eu japan china
cardiovascular
azd1722

nhe3 inhibitor esrdpi ckd with t2dm 
esrdfluid retention
ii 1q 2013
azd4901 nk3 polycystic ovarian syndrome ii 2q 2013
roxadustat fg4592

hypoxiainducible factor inhibitor anaemia in ckdesrd ii
1
 2018 † † 2016
medi6012 lcat acs i 1q 2012
infection
azd5847 oxazolidinone antibacterial 
inhibitor
tuberculosis ii 4q 2012
cxl

 beta lactamase inhibitor 
cephalosporin
mrsa ii 4q 2010
atm avi blbli targeted serious bacterial 
infections
i 4q 2012
azd0914 gyrar serious bacterial infections i 4q 2013
medi550 pandemic influenza virus vaccine pandemic influenza prophylaxis i 2q 2006
medi559 prvv paediatric rsv vaccine rsv prophylaxis i 4q 2008
medi4893 staph alpha toxin yte mab hospitalacquired pneumonia 
serious s aureus infection
i 1q 2013
medi9287
2
h7n9 vaccine avian influenza i 4q 2013
additional information financial statements corporate governance strategic report
195 astrazeneca annual report and form 20f information 2013 nmes 
phases i and ii continued
compound mechanism area under investigation phase
date 
commenced 
phase
estimated filing
us eu japan china
neuroscience
azd3241 myeloperoxidase mpo inhibitor parkinson’s disease ii 2q 2012
azd5213 histamine3 receptor antagonist tourette’s syndromeneuropathic 
pain
ii 4q 2013
azd3293

betasecretase alzheimer’s disease i 4q 2012
azd6423 nmda suicidal ideation i 3q 2013
oncology
azd1775

wee1 inhibitor ovarian cancer ii 4q 2012
azd2014 tor kinase inhibitor solid tumours ii 1q 2013
azd4547 fgfr tyrosine kinase inhibitor solid tumours ii 4q 2011
medi551

anticd19 mab haematological malignancies ii 1q 2012
medi573

 antiigf mab metastatic breast cancer ii 4q 2011
olaparib parp inhibitor breast cancer ii 1q 2012
selumetinib azd6244 
arry142886

mek inhibitor various cancers ii 4q 2008
tremelimumab antictla4 mab mesothelioma ii 2q 2013
azd1208 pim kinase inhibitor haematological malignancies i 1q 2012
azd5363

akt inhibitor solid tumours i 4q 2010
azd6738 atr cllhead  neck i 4q 2013
azd8186 pi3 kinase beta inhibitor solid tumours i 2q 2013
azd9150

 stat3 inhibitor haematological malignancies i 1q 2012
azd9291 epidermal growth factor inhibitor solid tumours i 1q 2013
medi565

anticea bite solid tumours i 1q 2011
medi0639

antidll 4 mab solid tumours i 2q 2012
medi0680 amp514 antipd1 mab solid tumours i 4q 2013
medi3617

antiang2 mab solid tumours i 4q 2010
medi4736

antipdl1 mab solid tumours i 3q 2012
medi4736

  
 tremelimumab
antipdl1 mab  antictla4 
mab
solid tumors i 4q 2013
medi4736

  dabrafenib  
 trametinib
3
antipdl1 mab  braf  
inhibitor  mek inhibitor
melanoma i 1q 2014
medi6469

murine antiox40 mab solid tumours i 1q 2006
moxetumomab  
pasudotox

anticd22 recombinant 
immunotoxin
pall i 3q 2008
volitinib

 azd6094 met inhibitor solid tumours i 1q 2012
respiratory  inflammation and autoimmunity
azd2115

maba copd ii 2q 2012
azd5069 cxcr2 asthma ii
4
4q 2010
benralizumab

antiil 5r mab copd ii 4q 2010
brodalumab

antiil 17r mab asthmapsoriatic arthritis ii 2q 2013
mavrilimumab

antigmcsfr mab rheumatoid arthritis ii 1q 2010
medi546

antiifnalphar mab sle ii 1q 2012
medi2070

antiil 23 mab crohn’s disease ii 1q 2013
medi7183

antia4b7 mab crohn’s diseaseulcerative colitis ii 4q 2012
medi8968

antiil 1r mab copdhs
5
ii 4q 2011
rdea3170 selective inhibitor of urat1 chronic management of 
hyperuricaemia in patients  
with gout
ii 3q 2013
sifalimumab

antiifnalpha mab sle ii 3q 2008
tralokinumab antiil 13 mab asthmaipf ii 1q 2008
azd1419 tlr9 asthma i 3q 2013
azd4721 cxcr2 copd i 3q 2013
azd7624 ip38i copd i 1q 2013
azd8848

inhaled tlr7 asthma i 2q 2012
medi551

anticd19 mab multiple sclerosis i 3q 2012
medi5872

antib7rp1 mab sle i 4q 2008
medi9929

antitslp mab asthma i 4q 2008
pt010 lamalabaics copd i 4q 2013
† a third party holds the ip to this molecule in this area
 partnered product
1
 inlicensed asset in latedevelopment but the phase iii astrazeneca programme has yet to randomise its first patient
2
 vaccine in development through a crada with niaid
3
 medimmunesponsored study in collaboration with gsk first patient dosed in january 2014
4
 progression within phase ii in 2013
5
 phase ii start in new indication of hidradenitis suppurativa hs in 2013
comments
submission dates shown for assets in phase iii and beyond
196
additional information  development pipeline
astrazeneca annual report and form 20f information 2013 discontinued projects between 1 january 2013 and 31 december 2013
nmeline extension compound reason for discontinuation area under investigation
infection
nme medi557 safetyefficacy rsv prevention in high risk adults copdchfother
neuroscience
nme azd1446 safetyefficacy alzheimer’s disease
nme azd3480

safetyefficacy alzheimer’s disease
nme azd5213 hypothesis risk alzheimer’s disease
nme azd6765 safetyefficacy major depressive disorder
nme medi5117 safetyefficacy oa pain
oncology
nme azd8330 arry424704

safetyefficacy solid tumours
nme fostamatinib

safetyefficacy haematological malignancies
nme medi575

safetyefficacy nsclc
respiratory inflammation and autoimmunity
nme azd5423

safetyefficacy copd
nme azd7594

safetyefficacy copd
nme fostamatinib

safetyefficacy rheumatoid arthritis
nme medi4212 safetyefficacy asthma
nme medi7814 economic copd
lcm tralokinumab safetyefficacy uc
 partnered product
completed projects
compound mechanism area under investigation
launch status
us eu japan china
cardiovascular
forxiga dapagliflozin sglt2 inhibitor diabetes – add on to dpp4 approved
forxiga dapagliflozin sglt2 inhibitor diabetes – add on to metformin 
longterm data
approved
forxiga dapagliflozin
1
sglt2 inhibitor diabetes – in patients with high cv risk – 
study 18 and 19 longterm data
forxiga dapagliflozin  sglt2 inhibitor diabetes – triple therapy dapametsu approved
infection
qlaiv flu vaccination live attenuated intranasal 
influenza virus vaccine 
quadrivalent
seasonal influenza approved approved
1
 studies 1819 complete no filing planned from this data
comments
as disclosure of compound information is balanced by the business need to maintain confidentiality information in relation to some 
compounds listed here has not been disclosed at this time
additional information financial statements corporate governance strategic report
197 astrazeneca annual report and form 20f information 2013 patent expiries for our key marketed products 
patents are or may be challenged by third parties generic products may be launched ‘at risk’ and our patents may be revoked 
circumvented or found not to be infringed see the principal risks and uncertainties section from page 200 many of our products are 
subject to challenges by third parties details of material challenges by third parties can be found in note 25 to the financial statements 
from page 176 additional patents relating to the products may have terms extending beyond the quoted dates a number of our products 
are subject to generic competition in one or more markets further information can be found in the geographical review from page 214
key marketed products
us revenue m
us patent expiry 2013 2012 2011
brilinta 2019 composition of matter
2021 crystalline form
2029 formulation 73 19 11
bydureon 2016
1
 method of treatment
2020 formulation
2
2025 formulation
3
2026 method of treatment
4
131 37 –
byetta 2016
1
 method of treatment
2020 formulation
152 74 –
crestor 2016 2912 3164 3074
faslodex 2021
5 
formulation 324 310 264
farxiga 2020 composition of matter – – –
iressa 2017
6 
– – –
kombiglyze xr 2023
1 
composition of matter –
7
–
7
–
7
nexium 2015
8 
2123 2272 2397
onglyza 2023
1 
composition of matter 265 237 156
pulmicort 2019
9 
respules
2018 flexhaler formulation
2019 flexhaler device 224 233 279
selokentoprolxl expired 131 320 404
seroquel xr 2017 formulation
10
743 811 779
symbicort 2014 combination 
2023 formulation
2026 pmdi device 1233 1003 846
synagis 2015 composition 
2023 formulation 
617 611 570
zoladex 2021 safety syringe 23 24 39
eu canada and japan revenue m
11
key marketed products eu patent expiry
12
canadian patent expiry japanese patent expiry 2013 2012 2011
brilique 2024
1
 composition of matter 2019 composition of matter 
2021 crystalline form
2019 composition of matter
2021 crystalline form
160 56 9
bydureon 2024
13
 formulation
14
2025 formulation 17 – –
byetta 2021
15
 formulation 2018 formulation 2020
1
 formulation 43 – –
crestor
16
2017
17
expired 2017 1779 2090 2534
faslodex 2021
18
 formulation 2021 formulation 2026
1 
formulation 270 268 219
forxiga 2027
19
 composition of matter
14 14
10  
iressa 2016
20
2016 2018
1
368 368 330
kombiglyze xr 2026
19
 composition of matter
14
– –
7
–
7
–
7
komboglyze 2026
19
 composition of matter 2021 composition of matter – –
7
–
7
–
7
losecprilosec expired expired expired 277 484 660
nexium 2014 2014 2018
21
699 648 1042
onglyza 2024
19
 composition of matter 2021 – 73 61 42
pulmicort 2018 respules 
2018 turbuhaler formulation
2018 respules 
2018 turbuhaler formulation
2018 respules 
2018 turbuhaler formulation
265 300 344
selokentoprolxl expired expired expired 132 139 163
seroquel xr 2017 formulation
22
2017 formulation
23
415 527 562
symbicort 2018 formulation 2018 formulation 2017 combination 1740 1728 1822
2019 turbuhaler device 2019 turbuhaler device 2018 formulation
2019 turbuhaler device
synagis 2015 composition 2015 composition 2015 composition 443 427 405
zoladex 2021 safety syringe 2021 safety syringe 2021 safety syringe 545 638 733
1
 date includes pte
2
 microparticle composition with defined features 
3
 formulation comprising a biocompatible polymer wherein the composition is free from 
additional ingredients that alter the release of polypeptide from the composition 
4
 method of treatment using poly lactidecoglycolide copolymer formulation to achieve  
a specified mean steady state plasma concentration 
5
 date includes paediatric exclusivity
6
 iressa not actively sold in the us date includes pte
7
 kombiglyze xrkomboglyze revenue is included in the onglyza revenue figure
8
 licence agreements with teva and ranbaxy pharmaceuticals inc allow each to launch  
a generic version in the us from may 2014 subject to regulatory approval
9
 date includes paediatric exclusivity a licence agreement with teva permits their ongoing  
sale in the us of a generic version from december 2009
10
 licence agreements with various generics companies allow launches of generic versions of 
seroquel xr in the us from 1 november 2016 or earlier upon certain circumstances subject  
to regulatory approval
11
 aggregate revenue for the eu canada and japan
12
 expiry in major eu markets
13
 sustained release composition comprising a biocompatible polymer wherein the composition 
has defined features
14
 product not approved in this country
15
 date includes pte – exact spc situation varies across countries eu data exclusivity to 2016
16
 crestor is covered by a range of patents including substance formulation and use patents 
crestor patent coverage is not uniform across countries granted ptes mean that a crestor 
substance patent remains in force in several major markets after the standard patent term 
expired in 2012 this substance patent is not in force in a number of countries such as  
australia brazil mexico russia and china
17
 a substance patent and pte with expiry in 2017 is in force in most major eu markets
18
 european patent was maintained after opposition before the european patent office epo  
the opponents appealed and a board of appeal of the epo is scheduled to hear the appeal  
in march 2014 see note 25 to the financial statements european regulatory data protection 
for faslodex expires in march 2014
19
 date includes spc term exact spc situation varies across europe
20
 there is data exclusivity for iressa in the eu to 2019
21
 includes pte reexamination period similar to data exclusivity ends july 2019
22
 astrazeneca is engaged in numerous patent revocation proceedings regarding seroquel xr 
patents and adverse court rulings such as those seen in germany the uk and elsewhere  
are possible
23
 rights licensed to astellas
198 astrazeneca annual report and form 20f information 2013
additional information
patent expiries in the strategy section on page 10 we 
provide an overview of the risks we face  
and what we are doing to address them  
in this section we describe in further detail 
our key risk management and assurance 
mechanisms and the principal risks and 
uncertainties which we consider to be 
material to our business as they may have  
a significant effect on our financial condition 
results of operations andor reputation 
specific risks and uncertainties are also 
discussed in the strategic report from  
page 2 where relevant 
managing risk
as an innovationdriven global prescription
based biopharmaceutical business we face 
a diverse range of risks and uncertainties 
that may adversely affect our business our 
approach to risk management is designed 
to encourage clear decision making as to 
which risks we take and how these are 
managed based on an understanding of 
the potential strategic commercial financial 
compliance legal and reputational 
implications of these risks
we work continuously to ensure that we 
have effective risk management processes 
in place to support the delivery of our 
strategic objectives the material needs of 
our stakeholders and our core values we 
monitor our business activities and external 
and internal environments for new emerging 
and changing risks to ensure that these  
are managed appropriately as they arise
the board believes that the processes  
and accountabilities which are in place 
described below provide it with adequate 
information on the key risks and uncertainties 
we face further information about these 
risks and uncertainties is set out in the 
principal risks and uncertainties section 
from page 200
risk management embedded in 
business processes 
we strive to ensure that sound risk 
management is embedded within our 
strategy planning budgeting and 
performance management processes  
the board has defined the group’s risk 
appetite expressing the acceptable levels  
of risk for the group using three key 
dimensions these are i earnings and 
cash flow ii return on investment and iii 
potential impact on our reputation this 
definition provides a clear statement by  
the board of its position on risk which 
enables the group in both quantitative  
and qualitative terms to judge the level of 
risk it is prepared to take so as to achieve  
its overall objectives 
annually the group develops a longterm 
business plan to support the delivery of its 
strategy which the board reviews to ensure 
that it conforms to its risk appetite our risk 
management approach is aligned to our 
strategy and business planning processes 
line managers are accountable for 
identifying and managing risks and for 
delivering business objectives in 
accordance with the group’s risk appetite 
each area for which a set member is 
responsible a set function is required  
to provide an assessment of its key risks 
annually identified risks are mapped to 
astrazeneca’s risk ‘taxonomy’ providing  
a structured disaggregation of the various 
potential risks facing the group set 
functions are required to provide quarterly 
updates identifying changes to the key risks 
their mitigation plans new or emerging 
significant risks and any key events that may 
have occurred the quarterly updates are 
then aggregated into a group risk report  
for set and audit committee review 
supporting tools are in place to assist the 
managers in this process and we continue 
to work on developing our risk management 
standards and guidelines
we develop business continuity plans to 
provide for situations where specific risks 
have the potential to severely impact our 
business these plans are supported by  
the provision of training and crisis simulation 
activities for business managers 
key responsibilities 
internal audit services ia 
ia is an independent assurance and 
advisory function that reports and is 
accountable to the audit committee 
ia’s budget resources and programme of 
audits are approved by the audit committee 
annually and the findings from its audit  
work are reported to and discussed at 
each audit committee meeting a core  
part of the audit work carried out by ia 
includes assessing how we are managing 
risk and reviewing the effectiveness of 
selected aspects of our risk control 
framework including the effectiveness  
of other assurance and compliance 
functions within the business 
global compliance 
our global compliance function has been 
established to drive and embed a culture of 
ethics and integrity within our organisation 
our key compliance priorities include
  focusing our efforts on important 
compliance risk areas 
  communicating clear policies to 
employees 
  improving compliance behaviours through 
effective training and support 
  ensuring employees can raise concerns 
and that those concerns will be properly 
addressed 
  ensuring fair and objective investigations 
of possible policy breaches 
  monitoring and auditing compliance with 
policies 
  providing key stakeholders with 
assurance and effective reporting of 
material issues
additional information financial statements corporate governance strategic report
199 astrazeneca annual report and form 20f information 2013
risk these priorities are closely aligned to the 
group’s strategy and reflect our drive to 
strengthen our efforts for oversight at all 
levels of our business including risk 
management relating to external parties and 
antibriberyanticorruption ia and global 
compliance work closely with one another 
and both separately provide assurance 
reporting to the audit committee through 
the group compliance council global 
compliance and ia work with a range  
of specialist compliance functions 
throughout our organisation to coordinate 
compliance activities
when a potential compliance breach is 
identified an internal investigation is 
undertaken by appropriate staff from our 
global compliance hr andor legal teams 
when appropriate external advisers are 
engaged to conduct andor advise on 
investigations should an investigation 
conclude that an actual breach has 
occurred management in consultation  
with our legal function will consider 
whether the group needs to make a 
disclosure andor to report the findings  
to a regulatory or governmental authority 
more information on ia and our overall risk 
management and control framework can be 
found in the corporate governance report 
from page 88 
management of risk
daytoday risk management is delegated 
from the board to the ceo and through the 
set to line managers set functions are 
accountable for establishing an appropriate 
line managementled process and for 
providing the resources for supporting 
effective risk management
line and project managers have primary 
responsibility within the context of their 
functional area for identifying and managing 
risk as well as for putting in place 
appropriate controls and procedures to 
monitor effectiveness
oversight and monitoring
the set is responsible for overseeing  
and monitoring the effectiveness of the risk 
management processes implemented by 
management the global compliance  
and finance functions together with ia 
support the set by advising on policy and 
standard setting monitoring and auditing 
communication and training as well  
as reporting on the adequacy of line 
management processes as they apply  
to managing our risk 
our compliance organisation is comprised 
of the global compliance function together 
with a wide range of specialist compliance 
functions further information about global 
compliance and the code of conduct can 
be found in the corporate governance 
report from page 88 
management reporting and assurance 
we provide quarterly risk reports to the  
set and to the board among other things 
these summarise our current assessment  
of the principal risks facing the group 
including environmental social and 
governance risks senior management 
accountability and our expected plans  
in order to address these risks to the  
extent possible
the audit committee comprises five 
nonexecutive directors it reviews and 
reports to the board following each  
audit committee meeting on the overall 
framework of risk management and internal 
controls and is responsible for promptly 
bringing to the board’s attention any 
significant concerns about the conduct 
results or outcomes of internal audits and 
other compliance matters the audit 
committee receives regular reports from 
our external auditor and the following 
business functions
  ia independent assurance reports  
on the group’s risk management and 
control framework
  global compliance reports on key 
compliance risks updates on key 
compliance initiatives and summaries  
of audits conducted by compliance 
functions compliance incidents and 
investigations including contact made by 
employees with azethics via our helplines
  financial control and compliance 
group reports on sarbanesoxley act 
compliance and the financial control 
framework
  management the grouplevel risk 
summary from the annual business 
planning process and reports on the 
performance management and 
monitoring processes
for further information on the audit 
committee see the audit committee 
report from page 98
principal risks and uncertainties 
operating in the pharmaceutical sector 
carries a number of inherent risks and 
uncertainties that may affect our business 
in the remainder of this section we describe 
the principal risks and uncertainties which 
we consider to be material to our business 
in that they may have a significant effect on 
our financial condition results of operations 
andor reputation 
these risks are not listed in any particular 
order of priority other risks unknown  
or not currently considered material could 
have a similar effect we believe that the 
forwardlooking statements about 
astrazeneca in this annual report identified 
by words such as ‘anticipates’ ‘believes’ 
‘expects’ and ‘intends’ and that include 
among other things the statements made  
in the chairman’s statement – outlook  
on page 7  and our strategic priorities – 
financial expectations on page 17  are 
based on reasonable assumptions 
however forwardlooking statements 
involve inherent risks and uncertainties such 
as those summarised below they relate to 
events that may occur in the future that may 
be influenced by factors beyond our control 
and that may have actual outcomes 
materially different from our expectations
200 astrazeneca annual report and form 20f information 2013
additional information  risk product pipeline risks
failure to meet development targets impact
the development of any pharmaceutical product candidate is a 
complex risky and lengthy process involving significant financial 
rd and other resources which may fail at any stage of the 
process due to a number of factors these include failure to 
obtain the required regulatory or marketing approvals for the 
product candidate or its manufacturing facilities unfavourable 
clinical efficacy data safety concerns failure of rd to develop 
new product candidates failure to demonstrate adequate 
costeffective benefits to reimbursement authorities and the 
emergence of competing products 
production and release schedules for biologics may be more 
significantly impacted by regulatory processes than other 
products this is due to more complex and stringent regulation 
on the manufacturing of biologics and their supply chain
a succession of negative drug project results and a failure to 
reduce development timelines effectively or produce new 
products that achieve commercial success could adversely 
affect the reputation of our rd capabilities and is likely to 
materially adversely affect our business or results of operations
difficulties of obtaining and maintaining 
regulatory approvals for new products 
impact
we are subject to strict controls on the commercialisation 
processes for our pharmaceutical products including their 
development manufacture distribution and marketing safety 
efficacy and quality must be established before a drug can be 
marketed for a given indication the criteria for establishing 
safety efficacy and quality may vary by country or region and  
the submission of an application to regulatory authorities may or 
may not lead to the grant of marketing approval regulators can 
refuse to grant approval or may require additional data before 
approval is given even though the medicine may already be 
launched in other countries approved products are also subject 
to regulations and a failure to comply can potentially result in 
losing regulatory approval to market our products
factors including advances in science and technology evolving 
regulatory science and changes in benefitrisk tolerance by 
health authorities the general public and other third party public 
interest groups influence the initial approvability of new drugs 
existing marketed products are also subject to these same 
forces and new data and metaanalyses have the potential to 
drive changes in the approval status or labelling recent years 
have seen an increase in postmarketing regulatory requirements 
and commitments and an increased call for third party access to 
regulatory and clinical trial data packages for independent 
analysis and interpretation 
the predictability of the outcome and timing of review processes 
remains challenging due to evolving regulatory science 
competing regulatory priorities and downward pressure on 
health authority resources
delays in regulatory reviews and approvals could impact patient 
and market access in addition the increase in postapproval 
activities requires increased resources and could impact the 
labelling and approval status of currently marketed products
failure to obtain and enforce effective  
ip protection
impact
our ability to obtain and enforce patents and other ip rights  
in relation to our products is an important element of our ability  
to protect our investment in rd and create longterm value  
for the business a number of the countries in which we operate 
are still developing their ip laws or may even be limiting the 
applicability of these laws to pharmaceutical inventions adverse 
political perspectives on the desirability of strong ip protection  
for pharmaceuticals in certain emerging and even developed 
markets may limit the scope for us to obtain effective ip 
protection for our products as a result certain countries may 
seek to limit or deny effective ip protection for pharmaceuticals
limitations on the availability of patent protection or the use of 
compulsory licensing in certain countries in which we operate 
could have a material adverse effect on the pricing and sales of 
our products and consequently could materially adversely affect 
our revenues from those products more information about 
protecting our ip is contained in the intellectual property section 
on page 72 information about the risk of patent litigation and the 
early loss of ip rights is contained in the expiry or loss of or 
limitations on ip rights risk on page 204
additional information financial statements corporate governance strategic report
201 astrazeneca annual report and form 20f information 2013 product pipeline risks continued
delay to new product launches impact
our continued success depends on the development and 
successful launch of innovative new drugs the anticipated 
launch dates of major new products have a significant impact on 
a number of areas of our business including investment in large 
clinical studies the manufacture of prelaunch product stocks 
investment in marketing materials prelaunch sales force training 
and the timing of anticipated future revenue streams from new 
product sales these launch dates are primarily driven by the 
development programmes that we run and the demands of the 
regulatory authorities in the approvals process as well as pricing 
negotiations delays to anticipated launch dates can result from  
a number of factors including adverse findings in preclinical or 
clinical studies regulatory demands price negotiation 
competitor activity and technology transfer
significant delays to anticipated launch dates of new products 
could have a material adverse effect on our financial condition 
andor results of operations for example for the launch of 
products that are seasonal in nature delays in regulatory 
approvals or manufacturing difficulties may delay launch to the 
next season which in turn may significantly reduce the return  
on costs incurred in preparing for the launch for that season  
in addition a delay in the launch may lead to increased costs if 
for example marketing and sales efforts need to be rescheduled 
or protracted for longer than expected
strategic alliances and acquisitions may  
be unsuccessful
impact
we seek technology licensing arrangements and strategic 
collaborations to expand our product portfolio and geographical 
presence as part of our business strategy 
such licensing arrangements and strategic collaborations are 
key enabling us to grow and strengthen the business the 
success of such arrangements is largely dependent on the 
technology and other ip we acquire rights to and the resources 
efforts and skills of our partners also under many of our 
strategic alliances we make milestone payments well in advance 
of the commercialisation of the products with no assurance  
that we will recoup these payments 
furthermore we experience strong competition from other 
pharmaceutical companies in respect of licensing arrangements 
strategic collaborations and acquisition targets and therefore 
we may be unsuccessful in implementing some of our  
intended projects 
we may also seek to acquire complementary businesses  
as part of our business strategy the integration of an acquired 
business could involve incurring significant debt and unknown  
or contingent liabilities as well as having a negative effect on  
our reported results of operations from acquisition related 
charges amortisation of expenses related to intangibles and 
charges for the implementation of longterm assets we  
may also experience difficulties in integrating geographically 
separated organisations systems and facilities and personnel 
with different organisational cultures 
if we fail to complete these types of collaborative projects in a 
timely manner on a costeffective basis or at all this may limit 
our ability to access a greater portfolio of products ip technology 
and shared expertise 
additionally disputes or difficulties in our relationship with our 
collaborators or partners may arise often due to conflicting 
priorities or conflicts of interest between parties which may 
erode or eliminate the benefits of these alliances 
the incurrence of significant debt or liabilities as a result of 
integration of an acquired business could cause deterioration  
in our credit rating and result in increased borrowing costs and 
interest expense 
further if following an acquisition liabilities are uncovered in the 
acquired business the group may suffer losses and may not 
have remedies against the seller or third parties the integration 
process may also result in business disruption diversion of 
management resources the loss of key employees and other 
issues such as a failure to integrate it and other systems 
202 astrazeneca annual report and form 20f information 2013
additional information  risk commercialisation and business execution risks
challenges to achieving commercial success of 
new products
impact
the successful launch of a new pharmaceutical product involves 
substantial investment in sales and marketing activities launch 
stocks and other items the commercial success of our new 
medicines is of particular importance to us in order to replace 
lost sales following patent expiry we may ultimately be unable  
to achieve commercial success for any number of reasons 
these include difficulties in manufacturing sufficient quantities  
of the product candidate for development or commercialisation 
in a timely manner the impact of price control measures 
imposed by governments and healthcare authorities the 
outcome of negotiations with third party payers erosion of ip 
rights including infringement by third parties and failure to show 
a differentiated product profile 
as a result we cannot be certain that compounds currently 
under development will achieve success and our ability to 
accurately assess prior to launch the eventual efficacy or safety 
of a new product once in broader clinical use can only be based 
on data available at that time which is inherently limited due to 
relatively short periods of product testing and relatively small 
clinical study patient samples 
the commercialisation of biologics is often more complex than 
for small molecule pharmaceutical products primarily due to 
differences in the mode of administration technical aspects of 
the product and rapidly changing distribution and reimbursement 
environments
if a new product does not succeed as anticipated or its rate of 
sales growth is slower than anticipated there is a risk that we 
may be unable to fully recoup the costs incurred in launching it 
which could materially adversely affect our business or results  
of operations 
due to the complexity of the commercialisation process for 
biologics the methods of distributing and marketing biologics 
could materially adversely impact our revenues from the sales  
of products such as synagis and flumistfluenz
illegal trade in our products impact
illegal trade covers the theft illegal diversion and counterfeiting of 
our products illegal trade in pharmaceutical products is estimated 
to exceed 75 billion per year and is generally considered by the 
industry nongovernmental organisations and governmental 
authorities to be increasing we suffer a commensurate financial 
exposure to illegal trade and there is also a risk to public health 
regulators and the public expect us to secure the integrity of our 
supply chain and to cooperate actively in the reduction of illegal 
trade in astrazeneca products through surveillance investigation 
and legal action against others engaged in illegal trade
public loss of confidence in the integrity of pharmaceutical 
products as a result of counterfeiting could materially adversely 
affect our reputation and financial performance in addition 
undue or misplaced concern about the issue may induce some 
patients to stop taking their medicines with consequential risks 
to their health there is also a direct financial loss where 
counterfeit medicines replace sales of genuine products and 
where genuine products are recalled following discovery of 
counterfeit stolen andor illegally traded products in an effort  
to regain control of the integrity of the supply chain
developing our business in emerging markets impact
the development of our business in emerging markets is a 
critical factor in determining our future ability to sustain or 
increase our global product revenues this poses various 
challenges including more volatile economic conditions 
competition from multinational and local companies with existing 
market presence the need to identify correctly and to leverage 
appropriate opportunities for sales and marketing poor ip 
protection inadequate protection against crime including 
counterfeiting corruption and fraud the need to impose 
developed market compliance standards the need to meet  
a more diverse range of national regulatory clinical and 
manufacturing requirements inadvertent breaches of local and 
international law not being able to recruit appropriately skilled 
and experienced personnel identification of the most effective 
sales channels and route to market and interventions by national 
governments or regulators restricting access to market andor 
introducing adverse price controls
the failure to exploit potential opportunities appropriately in 
emerging markets may materially adversely affect our reputation 
business or results of operations
additional information financial statements corporate governance strategic report
203 astrazeneca annual report and form 20f information 2013 commercialisation and business execution risks continued
expiry or loss of or limitations on ip rights impact
pharmaceutical products are only protected from being copied 
during the limited period of protection under patent rights andor 
related ip rights such as regulatory data protection or orphan 
drug status expiry or loss of these rights typically leads to the 
immediate launch of generic copies of the product in the country 
where the rights have expired or been lost see the patent 
expiries section on page 198 which contains a table of certain 
patent expiry dates for our key marketed products 
additionally the expiry or loss of patents covering other innovator 
companies’ products may also lead to increased competition  
for our own stillpatented products in the same product  
class due to the availability of generic products in that product 
class further there may be increased pricing pressure on  
our stillpatented products as a result of the lower prices of 
generic entrants
products under patent protection or within the period of 
regulatory data protection typically generate significantly higher 
revenues than those not protected by such rights our revenues 
financial condition and results of operations may be materially 
adversely affected upon expiry or early loss of our ip rights due 
to generic entrants into the market for the applicable product 
additionally the loss of patent rights covering major products of 
other pharmaceutical companies may materially adversely affect 
the growth of our stillpatented products in the same product 
class in that market
pressures resulting from generic competition impact
our products compete not only with other products approved  
for the same condition marketed by researchbased 
pharmaceutical companies but also with generic drugs 
marketed by generic pharmaceutical manufacturers these 
competitors may invest more of their resources into the 
marketing of their products than we do depending on the 
relative priority of these competitor products within their 
company’s portfolio generic versions of products are often sold 
at lower prices than branded products as the manufacturer 
does not have to recoup the significant cost of rd investment 
and market development the majority of our patented products 
including nexium crestor and seroquel xr are subject to price 
pressures as a result of competition from generic copies of these 
products and from generic forms of other drugs in the same 
product class for example generic forms of losecprilosec  
and lipitor  and generic forms of seroquel ir 
as well as facing generic competition upon expiry or loss of ip 
rights we also face the risk that generic drug manufacturers 
seek to market generic versions of our products prior to expiries 
of our patents andor the regulatory exclusivity periods for 
example we are currently facing challenges in the us from 
numerous generic drug manufacturers regarding our patents  
for nexium and pulmicort two of our key products generic 
manufacturers may also take advantage of the failure of certain 
countries to properly enforce regulatory data protection and 
may launch generics during this protected period this is a 
particular risk in some emerging markets where appropriate 
patent protection may be difficult to obtain or enforce 
if challenges to our patents by generic drug manufacturers 
succeed and generic products are launched or generic 
products are launched ‘at risk’ on the expectation that 
challenges to our ip will be successful this may materially 
adversely affect our financial condition and results of operations 
in 2013 us sales for nexium crestor and seroquel xr  
were 2123 million 2012 2272 million 2912 million  
2012 3164 million and 743 million 2012 811 million 
respectively furthermore if limitations on the availability  
scope or enforceability of patent protection are implemented  
in jurisdictions in which we operate generic manufacturers  
in these countries may be increasingly able to introduce 
competing products to the market earlier than they would  
have been able to had more robust patent or regulatory data 
protection been available
204 astrazeneca annual report and form 20f information 2013
additional information  risk effects of patent litigation in respect  
of ip rights
impact
any of the ip rights protecting our products may be asserted  
or challenged in ip litigation initiated against or by external 
parties such ip rights may also be the subject of validity 
challenges in patent offices we expect our most valuable 
products to receive the greatest number of challenges despite 
our efforts to establish and defend robust patent protection for 
our products we may not succeed in protecting our patents 
from such litigation or other challenges
where we assert our ip rights and allege infringement we bear 
the risk that courts may decide that third parties do not infringe 
our ip rights this may result in astrazeneca losing exclusivity 
andor erosion of revenues noninfringement defences are 
typically filed by third parties in response to patent infringement 
lawsuits including in socalled 505b2 cases in the us details 
of 505b2 actions can be found in note 25 to the financial 
statements from page 176 
where we assert our ip rights but are ultimately unsuccessful 
third parties may seek damages alleging for example that they 
have been inappropriately restrained from entering the market  
in such cases we bear the risk that we incur liabilities to those 
third parties
we also bear the risk that we may be found to infringe patents 
owned or licensed exclusively by third parties including 
researchbased and generic pharmaceutical companies and 
individuals infringement accusations may implicate for example 
our manufacturing processes product intermediates or use of 
research tools details of significant infringement claims against 
us by third parties enforcing ip rights can be found in note 25  
to the financial statements from page 176
if we are not successful in maintaining exclusive rights to market 
one or more of our major products particularly in the us where 
we achieve our highest revenue our revenue and margins could 
be materially adversely affected if we are ultimately unsuccessful 
in patent litigation we may incur liabilities to third parties for 
damages incurred after enforcing our ip rights
managing or litigating infringement disputes over socalled 
‘freedom to operate’ can be costly we may be subject to 
injunctions against our products or processes and be liable  
for damages or royalties we may need to obtain costly licences 
these risks may be greater in relation to biologics and vaccines 
where patent infringement claims may relate to discovery  
or research tools and manufacturing methods andor biological 
materials while we seek to manage such risks by for example 
acquiring licences foregoing certain activities or uses or 
modifying processes to avoid infringement claims and permit 
commercialisation of our products such steps can entail 
significant cost and there is no guarantee that they will  
be successful
price controls and reductions impact
most of our key markets have experienced the implementation of 
various cost control or reimbursement mechanisms in respect of 
pharmaceutical products
for example in the us realised prices are being depressed 
through restrictive reimbursement policies and cost control tools 
such as restricted lists and formularies which employ ‘generic 
first’ strategies andor require physicians to obtain prior approval 
for the use of a branded medicine where a generic alternative 
exists these mechanisms can be used by payers to limit the  
use of branded products and put pressure on manufacturers  
to reduce net prices in addition payers are shifting a greater 
proportion of the cost of branded medicines to the patient via 
outofpocket payments at the pharmacy counter the patient 
outofpocket spend is generally in the form of a copayment or  
in some cases a coinsurance which is designed principally  
to encourage patients to use generic medicines 
a summary of the principal aspects of price regulation and how 
price pressures are affecting our business in our most important 
markets is set out in the pricing pressure section from page 15 
and these economic pressures are also further discussed overleaf 
in the following risk factor
due to these pricing pressures there can be no certainty that  
we will be able to charge prices for a product that in a particular 
country or in the aggregate enable us to earn an adequate 
return on our product investment these pressures including  
the increasingly restrictive reimbursement policies to which we 
are subject as well as the continued potential of new legislation 
expanding the scope of permitted commercial importation of 
medicines into the us could materially adversely affect our 
business or results of operations 
we expect that these pressures on pricing will continue and  
may increase
additional information financial statements corporate governance strategic report
205 astrazeneca annual report and form 20f information 2013 commercialisation and business execution risks continued
economic regulatory and political pressures impact
we face continued economic regulatory and political pressures 
to limit or reduce the cost of our products 
in 2010 the us passed the affordable care act a 
comprehensive health reform package with provisions taking 
effect between 2010 and 2018 the law expands insurance 
coverage implements delivery system reforms and places a 
renewed focus on cost and quality in terms of specific provisions 
impacting our industry the law mandates higher rebates and 
discounts on branded drugs for certain medicare and medicaid 
patients as well as an industrywide excise fee implementation 
of several health system delivery reforms included in the law has 
commenced and will continue until 2018 
the affordable care act expands the patient population eligible 
for medicaid and will provide new insurance coverage for 
individuals through stateoperated and federaloperated health 
insurance exchanges from 2014 the pharmaceutical industry 
could be adversely impacted by such shifts if the health 
insurance exchanges do not offer a prescription drug benefit that 
is as robust as benefits historically provided by large employers 
we anticipate further government intervention in the us in 
connection with the recent initiative to contain federal spending 
for more information see the regulatory requirements and 
pricing pressure sections from page 14 and page 15 
respectively
in the eu efforts by the european commission to reduce 
inconsistencies and to improve standards in the disparate 
national pricing and reimbursement systems have met with  
little immediate success as member states guard their right  
to make healthcare budget decisions the industry continues  
to be exposed in europe to a range of ad hoc costcontainment 
measures and reference pricing mechanisms which impact 
prices this pressure is likely to continue for several years as  
the member states try to rebalance their sovereign debt levels 
concurrently many markets are adopting the use of health 
technology assessment hta to provide a rigorous evaluation  
of the clinical efficacy of a product at or post launch hta 
evaluations are also increasingly being used to assess the 
clinical as well as costeffectiveness of products in a particular 
health system this comes as payers and policymakers attempt 
to drive increased efficiencies in the use and choice of 
pharmaceutical products 
further information regarding these pressures is contained in  
the regulatory requirements and pricing pressure sections from 
page 14 and page 15 respectively
it is not possible to accurately estimate the financial impact  
of the potential consequences resulting from the affordable care 
act or related legislative changes when taken together with the 
number of other marketrelated and industryrelated factors that 
can also result in similar impacts while the overall reduction  
in our profit before tax for the year due to higher minimum 
medicaid rebates on prescription drugs discounts on branded 
pharmaceutical sales to medicare part d beneficiaries and an 
industrywide excise fee was 933 million this reflects only the 
limited number of known quantifiable and isolatable effects  
of these legislative developments other potential indirect or 
associated consequences of these legislative developments 
which continue to evolve and which cannot be estimated could 
have similar impacts these include broader changes in access 
to or eligibility for coverage under medicare medicaid or similar 
governmental programmes
these continued disparities in pricing systems could lead to 
marked price differentials between markets which by way of the 
implementation of existing or new reference pricing mechanisms 
increases the pricing pressure affecting the industry the 
importation of pharmaceutical products from countries where 
prices are low due to government price controls or other market 
dynamics to countries where prices for those products are 
higher is already prevalent and may increase in particular as 
discussed in the pricing pressure section on page 15 eurozone 
crisis countries such as greece and portugal have introduced 
particularly tough measures to lower healthcare spending 
including mandatory discounts clawbacks and price referencing 
rules which could have a material adverse effect on our business 
or results of operations
206 astrazeneca annual report and form 20f information 2013
additional information  risk abbreviated approval processes for biosimilars impact
while no application for a biosimilar has been made in relation  
to an astrazeneca biologic various regulatory authorities are 
implementing or considering abbreviated approval processes  
for biosimilars that would compete with patented biologics 
for example in 2010 the us enacted the biologics price 
competition and innovation act within the affordable care act 
which contains general directives for biosimilar applications the 
fda issued draft guidance in february 2012 on implementing an 
abbreviated biosimilar approval pathway however significant 
questions remain including standards for designation of 
interchangeability and data collection requirements to support 
extrapolation of indications in 2012 the fda also implemented 
user fee programmes to support biosimilar product review  
and policy development in europe the ema published final 
guidelines on similar biological medicinal products containing 
mabs and in may 2012 the first mab biosimilar application was 
made with recommendation for approval made by the ema 
notably a number of jurisdictions have adopted either the ema 
guidelines or those set forth by the who to enable biosimilars to 
enter the market after discrete periods of data exclusivity
the extent to which biosimilars would be differentiated from 
patented biologics on price is unclear however due to their 
complex nature it is uncertain whether biosimilars would have 
the same impact on patented biologics that generic products 
have had on patented small molecule products 
in addition it is uncertain when any such abbreviated approval 
processes may be fully realised particularly for more complex 
protein molecules such as mabs any such processes may 
materially and adversely affect the future commercial prospects 
for patented biologics such as the ones that we produce 
 
increasing implementation and enforcement of 
more stringent antibribery and anticorruption 
legislation
impact
there is an increasing global focus on the implementation and 
enforcement of antibribery and anticorruption legislation 
for example in the uk the bribery act 2010 came into force in 
july 201 1 it has extensive extraterritorial application implements 
significant changes to existing uk antibribery legislation and 
broadens the scope of statutory offences and the potential 
applicable penalties including organisational liability for any bribe 
paid by persons or entities associated with an organisation where 
the organisation failed to have adequate preventative procedures 
in place at the time of the offence in the us there has been 
significant enforcement activity in respect of the foreign corrupt 
practices act by the sec and doj against us companies and 
nonus companies listed in the us 
we are the subject of current anticorruption investigations  
and there can be no assurance that we will not from time to  
time continue to be subject to informal inquiries and formal 
investigations from governmental agencies in the context of our 
business governmental officials interact with us in a variety of roles 
that are important to our operations such as in the capacity of a 
regulator partner or healthcare payer reimburser or prescriber 
among others details of these matters are included in note 25  
to the financial statements from page 176
we devote significant resources to the considerable challenge  
of compliance with this legislation including in emerging and 
developing markets at considerable cost investigations from 
governmental agencies require additional resources despite 
taking significant measures to prevent breaches of applicable 
antibribery and anticorruption laws by our personnel and 
associated third parties breaches may result in the imposition  
of significant penalties such as fines the requirement to comply 
with monitoring or selfreporting obligations or debarment  
or exclusion from government sales or reimbursement 
programmes any of which could materially adversely affect  
our reputation business or results of operations
additional information financial statements corporate governance strategic report
207 astrazeneca annual report and form 20f information 2013 commercialisation and business execution risks continued
any expected gains from productivity initiatives 
are uncertain
impact
we continue to implement various productivity initiatives and 
restructuring programmes with the aim of enhancing the 
longterm efficiency of the business however anticipated cost 
savings and other benefits from these programmes are based  
on estimates and the actual savings may vary significantly in 
particular these cost reduction measures are often based on 
current conditions and cannot always take into account any 
future changes to the pharmaceutical industry or our operations 
including new business developments wage or price increases
if inappropriately managed the expected value of these  
initiatives could be lost through low employee engagement  
and hence productivity increased absence and attrition levels 
and industrial action 
our failure to successfully implement these planned cost 
reduction measures either through the successful conclusion  
of employee relations processes including consultation 
engagement talent management recruitment and retention  
or the possibility that these efforts do not generate the level of 
cost savings we anticipate could materially adversely affect  
our business or results of operations
failure to attract and retain key personnel  
and failure to successfully engage with  
our employees
impact
we rely heavily on recruiting and retaining talented employees 
with a diverse range of skills and capabilities to meet our 
strategic objectives for example the success of our science 
activities is particularly dependent on our ability to attract and 
retain sufficient numbers of high quality researchers and 
development specialists we face intense competition for well 
qualified individuals as the supply of people with specific skills 
and significant leadership potential or in specific geographic 
regions may be limited 
our ability to achieve high levels of employee engagement  
in the workforce and hence benefit from strong commitment 
and motivation is key to the successful delivery of our  
business objectives 
the inability to attract and retain highly skilled personnel in 
particular those in key scientific and leadership positions and in 
our talent pools may weaken our succession plans for critical 
positions in the medium term may materially adversely affect the 
implementation of our strategic objectives and could ultimately 
impact our business or results of operations 
failure to engage effectively with our employees could lead to 
business disruption in our daytoday operations reduce levels  
of productivity andor increase levels of voluntary turnover all of 
which could ultimately adversely impact our business or results 
of operations 
while we are committed to working on improving drivers of 
engagement such as increasing our employees’ understanding 
of our new strategy and our ongoing efforts to reduce 
organisational complexity our efforts may be unsuccessful
failure of information technology and 
cybercrime
impact
we are dependent on effective it systems these systems 
support key business functions such as our rd manufacturing 
supply chain and sales capabilities and are an important means 
of safeguarding and communicating data including critical or 
sensitive information the confidentiality and integrity of which we 
rely on the size and complexity of our it systems and those  
of our third party vendors including outsource providers with 
whom we contract has significantly increased over the past 
decade and makes such systems potentially vulnerable to 
service interruptions and security breaches from attacks by 
malicious third parties or from intentional or inadvertent actions 
by our employees or vendors
any significant disruption to these it systems including  
breaches of data centre security or cybersecurity or failure to 
integrate new and existing it systems could harm our reputation 
and materially adversely affect our financial condition or results  
of operations 
while we have invested heavily in the protection of our data and 
it we may be unable to prevent breakdowns or breaches in our 
systems that could adversely affect our business 
significant changes in the business footprint and the 
implementation of the new it strategy including the setting  
up of captive offshore global technology centres could lead  
to temporary loss of capability while the changes are being 
implemented
the inability to effectively backup and restore data could lead to 
permanent loss of data that could result in noncompliance with 
applicable laws and regulations
we and our vendors could be susceptible to third party attacks 
on our information security systems which attacks are of ever 
increasing levels of sophistication and are made by groups and 
individuals with a wide range of motives and expertise including 
criminal groups ‘hacktivists’ and others from time to time we 
experience malicious intrusions and computer viruses
208 astrazeneca annual report and form 20f information 2013
additional information  risk failure of outsourcing impact
we have outsourced a number of business critical operations  
to third party providers this includes certain rd processes  
it systems hr and finance and accounting services
a failure to successfully manage and implement the integration  
of it infrastructure services provided by our outsourcing 
providers could create disruption which could materially 
adversely affect our business or results of operations 
failure of outsource providers to deliver timely services and to 
the required level of quality and failure of outsource providers to 
cooperate with each other could materially adversely affect our 
financial condition or results of operations in addition such 
failures could adversely impact our ability to meet business 
targets maintain a good reputation within the industry and with 
stakeholders and result in noncompliance with applicable laws 
and regulations
supply chain and delivery risks
manufacturing biologics impact
manufacturing biologics especially in large quantities is complex 
and may require the use of innovative technologies to handle 
living microorganisms and facilities specifically designed and 
validated for this purpose with sophisticated quality assurance 
and control procedures
final market release of a biologic depends on a number of 
inprocess manufacturing and supply chain parameters to 
ensure the product conforms with its safety identity and strength 
requirements and meets its quality and purity characteristics 
biologics production facilities especially for drug substance 
manufacture are very specialised and can take years to develop 
and bring on line as licensed facilities predicting demand  
for certain classes of biologics especially prior to launch can  
be challenging
slight variations in any part of the manufacturing process  
or components may lead to a product that does not meet  
its stringent design specifications failure to meet these 
specifications may lead to recalls spoilage drug product 
shortages regulatory action andor reputational harm
difficulties and delays in the manufacturing 
distribution and sale of our products
impact
we may experience difficulties and delays in manufacturing our 
products such as i supply chain continuity including as a result 
of disruptions such as a natural or manmade disaster at one of 
our facilities or at a critical supplier or vendor ii delays related to 
the construction of new facilities or the expansion of existing 
facilities including those intended to support future demand for 
our products iii the seizure or recall of products or shutdown of 
manufacturing plants and iv other manufacturing or distribution 
problems including changes in manufacturing production sites 
limits to manufacturing capacity due to regulatory requirements 
changes in the types of products produced or physical 
limitations or other business interruptions that could impact 
continuous supply
manufacturing distribution and sales difficulties may result  
in product shortages and significant delays which may lead  
to lost sales
additional information financial statements corporate governance strategic report
209 astrazeneca annual report and form 20f information 2013 supply chain and delivery risks continued
reliance on third parties for goods impact
we increasingly rely on third parties for the timely supply of 
goods such as raw materials for example the api in some of 
our medicines equipment formulated drugs and packaging  
all of which are key to our operations 
unexpected events andor events beyond our control could 
result in the failure of the supply of goods for example suppliers 
of key goods we rely on may cease to trade in addition we may 
experience limited supply of biological materials such as cells 
animal products or byproducts furthermore government 
regulations in multiple jurisdictions could result in restricted 
access to use or transport of such materials 
third party supply failure could materially adversely affect our 
financial condition or results of operations this may lead to 
significant delays andor difficulties in obtaining goods and 
services on commercially acceptable terms 
loss of access to sufficient sources of key goods and biological 
materials may interrupt or prevent our research activities as 
planned andor increase our costs further information is 
contained in the managing risk section on page 44
legal regulatory and compliance risks
adverse outcome of litigation andor 
governmental investigations
impact
we may be subject to legal proceedings and governmental 
investigations litigation particularly in the us is inherently 
unpredictable and unexpectedly high awards for damages  
can result from an adverse verdict in many cases plaintiffs  
may claim compensatory punitive and statutory damages  
in extremely high amounts in particular the marketing 
promotional clinical and pricing practices of pharmaceutical 
manufacturers as well as the manner in which manufacturers 
interact with purchasers prescribers and patients are subject  
to extensive regulation litigation and governmental investigation 
many companies including astrazeneca have been subject to 
claims related to these practices asserted by federal and state 
governmental authorities and private payers and consumers 
which have resulted in substantial expense and other significant 
consequences note 25 to the financial statements from page 
176 describes the material legal proceedings in which we are 
currently involved
investigations for example the doj investigative demand 
 in relation to the brilinta plato trial described in further detail  
in note 25 to the financial statements from page 176 or legal 
proceedings regardless of their outcome could be costly divert 
management attention or damage our reputation and demand 
for our products unfavourable resolution of current and similar 
future proceedings against us could subject us to criminal 
liability fines penalties or other monetary or nonmonetary 
remedies require us to make significant provisions in our 
accounts relating to legal proceedings and could materially 
adversely affect our business or results of operations
substantial product liability claims impact
pharmaceutical companies have historically been subject to large 
product liability damages claims settlements and awards for 
injuries allegedly caused by the use of their products adverse 
publicity relating to the safety of a product or of other competing 
products may increase the risk of product liability claims 
substantial product liability claims that result in court decisions 
against us or in the settlement of proceedings could materially 
adversely affect our financial condition or results of operations 
particularly where such circumstances are not covered by 
insurance for more information see the limited third party 
insurance coverage risk on page 213
failure to adhere to applicable laws rules 
and regulations
impact
any failure to comply with applicable laws rules and regulations 
may result in civil andor criminal legal proceedings being filed 
against us or in us becoming subject to regulatory sanctions 
regulatory authorities have wideranging administrative powers 
to deal with any failure to comply with continuing regulatory 
oversight and this could affect us whether such failure is our 
own or that of our contractors or external partners
failure to comply with applicable laws including ongoing control 
and regulation could materially adversely affect our business  
or results of operations for example once a product has been 
approved for marketing by the regulatory authorities it is subject 
to continuing control and regulation such as the manner of its 
manufacture distribution marketing and safety surveillance for 
example if regulatory issues concerning compliance with current 
good manufacturing practice or safety monitoring regulations for 
pharmaceutical products often referred to as pharmacovigilance 
arise this could lead to loss of product approvals product recalls 
and seizures and interruption of production which could create 
product shortages and delays in new product approvals and so 
negatively impact patient access and reputation
210 astrazeneca annual report and form 20f information 2013
additional information  risk failure to adhere to laws rules and regulations 
relating to anticompetitive behaviour
impact
any failure to comply with laws rules and regulations relating  
to anticompetitive behaviour may expose us to regulatory 
sanctions or lawsuits from governmental authorities and private 
nongovernmental entities 
certain of our commercial arrangements with generics 
companies which have sought to settle patent challenges on 
terms acceptable to both innovator and generics manufacturer 
may be subject to challenge by competition authorities  
where a government authority investigates our adherence to 
competition laws or we become subject to private party lawsuits 
for example the us nexium settlement antitrust litigation 
described in more detail in note 25 to the financial statements 
from page 176 this may result in inspections of our sites or 
requests for documents and other information competition 
investigations or legal proceedings could be costly divert 
management attention or damage our reputation 
unfavourable resolution of such challenges investigations or 
legal proceedings against us could require us to make changes 
to our commercial practice and could subject us to fines and 
penalties and other sanctions these could materially adversely 
affect our business or results of operations
environmental and occupational health and 
safety liabilities
impact
we have environmental andor occupational health and 
safetyrelated liabilities at some currently and formerly owned 
leased and third party sites the most significant of which are 
detailed in note 25 to the financial statements from page 176 
while we carefully manage these liabilities if a significant 
compliance issue environmental occupational health or safety 
incident or legal requirement for which we are responsible were 
to arise this could result in us being responsible for compensation 
fines andor remediation costs in some circumstances such 
liability could materially adversely affect our business or results of 
operations in addition our financial provisions for any obligations 
that we may have relating to environmental or occupational 
health and safety liabilities may be insufficient if the assumptions 
underlying the provisions including our assumptions regarding 
the portion of waste at a site for which we are responsible  
prove incorrect or if we are held responsible for additional 
contamination or occupational health and safetyrelated claims
misuse of social media platforms and  
new technology
impact
we increasingly use the internet social media mobile applications 
and other forms of new technology to communicate internally 
and externally the accessibility and instantaneous nature of 
interactions with such media may facilitate or exacerbate the risk 
of data leakages from within astrazeneca or false or misleading 
statements being made about astrazeneca which may be 
damaging to our reputation as social media platforms expand it 
becomes increasingly challenging to identify new points of entry 
and to put structures in place to secure and protect information
inappropriate use of certain media vehicles could lead to misuse 
including public disclosure of sensitive information such as 
personally identifiable information on employees healthcare 
professionals or patients for example those enrolled in our 
clinical trials which may damage our reputation and expose  
us to legal risks as well as additional legal obligations similarly 
the involuntary public disclosure of commercially sensitive 
information such as trade secrets through external media 
channels or an information loss could adversely affect our 
business or results of operations in addition negative posts or 
comments on social media websites about us or for example 
the safety of any of our products could harm our reputation
additional information financial statements corporate governance strategic report
211 astrazeneca annual report and form 20f information 2013 economic and financial risks
adverse impact of a sustained economic 
downturn
impact
a variety of significant risks may arise from a sustained global 
economic downturn additional pressure from governments and 
other healthcare payers on medicine prices and volumes of sales 
in response to recessionary pressures on budgets may cause  
a slowdown or a decline in growth in some markets in some 
cases those governments most severely impacted by the 
economic downturn may seek alternative ways to settle their 
debts through for example the issuance of government bonds 
which might trade at a discount to the face value of the debt 
in addition our customers may cease to trade which may result 
in losses from writing off debts we are highly dependent on 
being able to access a sustainable flow of liquid funds due to  
the high fixed costs of operating our business and the long and 
uncertain development cycles of our products in a sustained 
economic downturn financial institutions with whom we deal 
may cease to trade and there can be no guarantee that we will 
be able to access monies owed to us without a protracted 
expensive and uncertain process if at all 
more than 95 of our cash investments are managed centrally 
and are invested in aaa credit rated institutional money market 
funds backed by institutions in the us and the eu which in turn 
invest in other funds including sovereign funds this means our 
credit exposure is a mix of us and eu sovereign default risk and 
financial institution default risk
while we have adopted cash management and treasury policies 
to manage this risk see the financial risk management policies 
section on pages 82 and 83 we cannot be certain that these will 
be as effective as they are intended to be in particular in the 
event of a global liquidity crisis in addition open positions where 
we are owed money and investments we have made in financial 
institution money market funds cannot be guaranteed to be 
recoverable additionally if we need access to external sources 
of financing to sustain andor grow our business such as the 
debt or equity capital financial markets this may not be available 
on commercially acceptable terms if at all in the event of a 
severe andor sustained economic downturn this may for 
instance be the case in the event of any default by the group  
on its debt obligations which may materially adversely affect  
our ability to secure debt funding in the future or our financial 
condition in general further information on debt funding 
arrangements is contained in the financial risk management 
policies section on page 83
political and socioeconomic conditions impact
we operate in over 100 countries across the world some of 
which may be subject to political and social instability there may 
be disruption to our business if there is instability in a particular 
geographic region including as a result of war terrorism riot 
unstable governments civil insurrection or social unrest
deterioration of or failure to improve socioeconomic conditions 
and situations andor resulting events depending on their 
severity could adversely affect our supply andor distribution 
chain in the affected countries and the ability of customers or 
ultimate payers to purchase our medicines this could adversely 
affect our business or results of operations
impact of fluctuations in exchange rates impact
as a global business currency fluctuations can significantly 
affect our results of operations which are reported in us dollars 
approximately 39 of our global 2013 sales were in the us 
which is expected to remain our largest single market for the 
foreseeable future sales in other countries are predominantly in 
currencies other than the us dollar including the euro japanese 
yen australian dollar and canadian dollar we have a growing 
exposure to emerging market currencies where some have 
exchange controls in place but for others the exchange rates are 
also linked to the us dollar major components of our cost base 
are located in the uk and sweden where an aggregate of 
approximately 23 of our employees are based
movements in the exchange rates used to translate foreign 
currencies into us dollars may materially adversely affect our 
financial condition or results of operations additionally some  
of our subsidiaries import and export goods and services in 
currencies other than their own functional currency and so  
the financial results of such subsidiaries could be affected by 
currency fluctuations arising between the transaction dates and 
the settlement dates for these transactions in addition there are 
foreign exchange differences arising on the translation of equity 
investments in subsidiaries see note 23 to the financial 
statements from page 169
212 astrazeneca annual report and form 20f information 2013
additional information  risk limited third party insurance coverage impact
in recent years the costs associated with product liability 
litigation have increased the cost of and narrowed the coverage 
afforded by pharmaceutical companies’ product liability 
insurance to contain insurance costs in recent years we have 
continued to adjust our coverage profile accepting a greater 
degree of uninsured exposure the group has not held any 
material product liability insurance since february 2006 in 
addition where claims are made under insurance policies 
insurers may reserve the right to deny coverage on various 
grounds for example product liability litigation cases relating  
to crestor and nexium in the us are not covered by third party 
product liability insurance see note 25 to the financial 
statements from page 176 for details
if we are found to have a financial liability as a result of product 
liability or other litigation in respect of which we do not have 
insurance cover or if an insurer’s denial of coverage is ultimately 
upheld this could materially adversely affect our business or 
results of operations 
for more information see the substantial product liability claims 
risk on page 210
taxation impact
the integrated nature of our worldwide operations can produce 
conflicting claims from revenue authorities as to the profits to be 
taxed in individual countries the majority of the jurisdictions in 
which we operate have double tax treaties with other foreign 
jurisdictions which provide a framework for mitigating the 
incidence of double taxation on our revenues and capital gains 
the resolution of these disputes can result in a reallocation  
of profits between jurisdictions and an increase or decrease  
in related tax costs and has the potential to affect our cash flows 
and eps claims regardless of their merits or their outcome  
are costly divert management attention and may adversely affect 
our reputation
if any of these double tax treaties should be withdrawn or 
amended especially in a territory where a member of the group 
is involved in a taxation dispute with a tax authority in relation to 
crossborder transactions such withdrawal or amendment could 
materially adversely affect our business or results of operations 
as could a negative outcome of a tax dispute or a failure by the 
tax authorities to agree through competent authority proceedings 
see the financial risk management policies section on page 83  
for tax risk management policies and note 25 to the financial 
statements on page 183 for details of current tax disputes
pensions impact
our pension obligations are backed by assets invested across 
the broad investment market our most significant obligations 
relate to the uk pension fund
sustained falls in these asset values will put a strain on pension 
fund solvency levels which may result in requirements for 
additional cash restricting cash available for strategic business 
growth similarly if the liabilities increase as a result of a 
sustained low interest rate environment this will reduce pension 
fund solvency ratios the likely increase in the ias 19 accounting 
deficit generated by any of these factors may cause the credit 
rating agencies to review our credit rating with the potential to 
negatively affect our ability to raise debt see note 18 to the 
financial statements from page 159 for further details of the 
group’s pension obligations
financial expectations impact
we may from time to time communicate targets or expectations 
regarding our future financial or other performance for example 
the expectations described in our strategic priorities – financial 
expectations from page 17 all such statements are of a 
forwardlooking nature and are based on assumptions and 
judgements we make all of which are subject to inherent risks 
and uncertainties including risks and uncertainties that we are 
unaware of andor that are beyond our control
there can be no guarantee that our financial targets or 
expectations will materialise actual results may deviate materially 
and adversely from any such target or expectation including  
if one or more of the assumptions or judgements underlying any 
such target or expectation proves to be incorrect in whole or  
in part
additional information financial statements corporate governance strategic report
213 astrazeneca annual report and form 20f information 2013 our financial performance
2013 2012 2011
sales
m
reported
growth 

cer
growth

sales
m
reported
growth 

cer 
growth

sales
m
us 9691 9 9 10655 21 21 13426
europe 6658 7 9 7143 23 15 9224
japan 2485 14 4 2904 5 5 3064
canada 637 42 40 1090 32 31 1604
other established row 851 22 18 1086 12 12 1233
emerging markets 5389 6 8 5095 1 4 5040
total 25711 8 6 27973 17 15 33591
cardiovascular and metabolic disease
world us europe established row emerging markets prior year
2013
sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

world
sales
m
crestor 5622 10 8 2912 8 1225 – 3 807 36 27 678 15 17 6253
atacand 611 39 39 72 52 225 51 52 71 50 49 243 5 1 1009
selokentoprolxl 750 18 18 131 59 130 2 5 24 20 7 465 7 8 918
onglyza 378 17 17 265 12 56 12 12 20 54 54 37 61 61 323
plendil 260 3 2 – 100 21 13 17 10 17 17 229 8 7 252
tenormin 197 14 7 15 50 51 4 6 77 27 13 54 10 7 229
brilintabrilique 283 218 216 73 284 163 186 179 17 nm nm 30 200 210 89
byetta 206 178 181 152 105 36 nm nm 11 nm nm 7 nm nm 74
bydureon 151 308 308 131 254 17 nm nm 1 nm nm 2 nm nm 37
forxiga 10 nm nm – – 10 nm nm – – – – – – –
others 362 4 4 50 100 164 2 5 25 24 15 123 1 2 347
total 8830 7 6 3801 6 2098 4 6 1063 34 25 1868 9 11 9531
world us europe established row emerging markets prior year
2012
sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

world
sales
m
crestor 6253 6 4 3164 3 1229 6 2 1269 24 23 591 2 5 6622
atacand 1009 30 27 150 18 461 40 36 142 33 33 256 10 6 1450
selokentoprolxl 918 7 4 320 21 133 14 6 30 21 21 435 12 15 986
onglyza 323 53 53 237 52 50 39 39 13 86 86 23 83 83 211
plendil 252 2 2 4 50 24 20 13 12 14 14 212 4 1 256
tenormin 229 15 13 10 9 53 15 8 106 15 15 60 13 8 270
brilintabrilique 89 324 348 19 73 57 nm nm 3 nm nm 10 nm nm 21
byetta 74 nm nm 74 nm – – – – – – – – – –
bydureon 37 nm nm 37 nm – – – – – – – – – –
others 347 12 8 25 150 168 17 11 32 15 15 122 15 10 396
total 9531 7 4 4040 5 2175 15 9 1607 23 23 1709 1 4 10212
214 astrazeneca annual report and form 20f information 2013
additional information
geographical review
this section contains further information about the performance of 
our products within the geographical areas in which our sales and 
marketing efforts are focused  oncology
world us europe established row emerging markets prior year
2013
sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

world
sales
m
zoladex 996 9 – 23 4 252 7 8 372 17 4 349 – 10 1093
faslodex 681 4 6 324 5 221 1 2 62 – 21 74 17 29 654
iressa 647 6 11 – – 177 14 11 202 9 9 268 15 14 611
arimidex 351 35 30 6 71 93 33 34 154 45 35 98 7 6 543
casodex 376 17 7 5 267 53 12 13 225 25 10 93 3 4 454
others 142 5 15 25 – 29 53 53 60 6 14 28 4 4 134
total 3193 9 2 383 2 825 4 6 1075 22 7 910 4 9 3489
world us europe established row emerging markets prior year
2012
sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

world
sales
m
zoladex 1093 7 5 24 38 271 16 11 448 9 9 350 8 12 1179
faslodex 654 20 24 310 17 219 2 6 62 nm nm 63 21 33 545
iressa 611 10 12 – 100 155 15 24 222 9 9 234 9 9 554
arimidex 543 28 26 21 50 138 52 48 279 9 9 105 13 12 756
casodex 454 17 16 3 nm 60 35 29 301 17 17 96 4 3 550
others 134 13 15 25 108 19 27 40 63 – – 27 7 4 121
total 3489 6 3 377 7 862 20 14 1375 4 4 875 4 7 3705
respiratory inflammation and autoimmunity 
world us europe established row emerging markets prior year
2013
sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

world
sales
m
symbicort 3483 9 10 1233 23 1502 3 1 423 5 7 325 15 17 3194
pulmicort 867 – 1 224 4 171 10 13 112 12 2 360 14 13 866
others 327 8 8 58 11 115 11 13 33 20 15 121 – 1 355
total 4677 6 7 1515 16 1788 – 2 568 7 4 806 12 13 4415
world us europe established row emerging markets prior year
2012
sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

world
sales
m
symbicort 3194 1 5 1003 19 1465 8 2 443 6 7 283 3 1 3148
pulmicort 866 3 1 233 16 191 20 15 127 1 1 315 27 27 892
others 355 17 14 65 21 129 19 15 40 5 5 121 14 13 428
total 4415 1 2 1301 8 1785 10 5 610 4 5 719 6 8 4468
infection neuroscience and gastrointestinal  
infection
world us europe established row emerging markets prior year
2013
sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

world
sales
m
synagis 1060 2 2 617 1 443 4 4 – – – – – – 1038
merremmeronem 293 26 24 11 71 49 41 42 5 72 72 228 11 8 396
flumistfluenz 245 35 35 199 14 42 nm nm 4 33 33 – 100 100 181
others 89 6 5 55 5 7 38 63 13 18 55 14 11 17 100
total 1687 1 1 882 – 541 3 3 22 31 19 242 12 9 1715
world us europe established row emerging markets prior year
2012
sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

world
sales
m
synagis 1038 6 6 611 7 427 5 5 – – – – – – 975
merremmeronem 396 32 29 38 7 83 61 58 18 66 66 257 7 2 583
flumistfluenz 181 12 12 174 9 3 200 200 3 nm nm 1 – – 161
others 100 31 28 58 25 8 27 18 16 20 20 18 41 24 137
total 1715 8 7 881 4 521 17 16 37 49 49 276 10 4 1856
additional information financial statements corporate governance strategic report
215 astrazeneca annual report and form 20f information 2013 neuroscience
world us europe established row emerging markets prior year
2013
sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

world
sales
m
seroquel xr 1337 11 12 743 8 416 17 19 71 27 25 107 6 12 1509
seroquel ir 345 73 72 17 nm 105 55 57 106 48 40 151 6 3 1294
local anaesthetics 510 6 2 – – 206 3 5 182 12 1 122 – 2 540
vimovo 91 40 42 20 20 32 45 41 20 43 50 19 375 400 65
others 452 12 9 33 18 113 23 25 97 28 16 209 1 3 515
total 2735 30 29 779 50 872 22 24 476 27 19 608 3 6 3923
world us europe established row emerging markets prior year
2012
sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

world
sales
m
seroquel xr 1509 1 4 811 4 500 7 – 97 9 10 101 19 23 1490
seroquel ir 1294 70 70 697 79 235 58 56 202 11 12 160 22 20 4338
local anaesthetics 540 10 7 – 100 212 16 10 206 – – 122 10 5 602
vimovo 65 91 97 25 19 22 214 243 14 133 133 4 400 400 34
others 515 30 28 28 84 149 37 33 134 12 12 204 14 19 740
total 3923 46 44 1561 64 1118 30 25 653 4 4 591 2 1 7204
gastrointestinal 
world us europe established row emerging markets prior year
2013
sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

world
sales
m
nexium 3872 2 – 2123 7 360 19 21 597 25 41 792 6 8 3944
losecprilosec 486 32 28 30 – 131 31 33 165 48 39 160 8 9 710
others 231 16 16 178 23 43 2 5 7 – – 3 – – 198
total 4589 5 3 2331 5 534 22 24 769 4 9 955 3 5 4852
world us europe established row emerging markets prior year
2012
sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

sales
m
reported
growth 

cer 
growth

world
sales
m
nexium 3944 11 10 2272 5 447 44 40 476 12 11 749 8 11 4429
losecprilosec 710 25 24 30 21 191 23 17 316 29 29 173 19 20 946
others 198 24 25 145 44 44 14 8 6 – – 3 – – 161
total 4852 12 11 2447 4 682 38 33 798 20 19 925 1 4 5536
216 astrazeneca annual report and form 20f information 2013
additional information  geographical review 2013 in brief
  astrazeneca is the third largest 
prescriptionbased pharmaceutical 
company in the us with a 51 market 
share of us pharmaceuticals by  
sales value
  astrazeneca is the ninth largest 
prescriptionbased pharmaceutical 
company in europe with a 28 market 
share of sales by value
  in the us sales were down 9 to  
9691 million 2012 10655 million 
2011 13426 million loss of exclusivity 
on seroquel ir in march 2012 as well  
as the impact of generic competition 
notably on crestor and toprolxl was 
only partially offset by strong performance 
across our growth platforms including 
brilinta symbicort and our diabetes 
franchise which increased by 225 million 
or 62 in 2013 our diabetes franchise 
included a full calendar year of revenue  
for bydureon byetta and symlin 
  sales in europe were down 9 to  
6658 million 2012 7 143 million 2011 
9224 million key drivers of the decline 
were the ongoing volume erosion on 
atacand seroquel ir nexium arimidex 
and meronem following entry of generic 
competition and the negative price and 
volume impacts primarily related to 
government interventions seroquel xr 
faced a difficult year with loss of market 
share lower pricing and generic entries 
these challenges were only partially 
offset by our growth platforms including 
brilique growth and the expansion of  
our diabetes offering through the amylin 
franchise as well as strong demand for 
fluenz particularly in the uk
  established rest of world sales were 
down 10 canada continues to be 
negatively impacted by generic erosion 
on crestor and nexium with total sales 
down 40 australian sales were also 
down as crestor faces competition from 
generics these trends were partially 
offset by growth in japan with sales up 
4 to 2485 million as a result of strong 
demand for nexium following the lifting  
of restrictions on length of prescriptions  
in october 2012
  emerging markets sales increased by 8 
to 5389 million 2012 5095 million 
with sales growth in china of 19
2012 in brief 
  astrazeneca was the fourth largest 
pharmaceutical company in the us  
with a 5 market share of us 
pharmaceuticals by sales value
  astrazeneca was the eighth largest 
prescriptionbased pharmaceutical 
company in europe with a 33 market 
share of sales by value
  in the us sales were down 21 to 
10655 million 2011 13426 million 
loss of exclusivity on seroquel ir in 
march 2012 as well as the impact of 
increased generic competition 
experienced by our other mature brands 
was partially offset by strong performance 
from our key brands brilinta crestor 
onglyza symbicort and faslodex 
  sales in europe were down 15 to  
7 143 million 2011 9224 million key 
drivers of the decline were the volume 
erosion on atacand seroquel ir nexium 
arimidex and meronem following entry  
of generic competition and the negative 
price and volume impact primarily related 
to government interventions particularly 
in greece italy portugal and spain  
this development was partially offset by 
revenue growth from brilique onglyza 
vimovo and iressa
  established row sales were down 14 
the entry of generic competition to 
crestor in canada and seroquel ir and 
arimidex in australia was partially offset 
by the successful first full year of launch  
of nexium and faslodex in japan
  emerging markets sales increased by 4 
to 5095 million 2011 5040 million 
with sales growth in china of 17 and 
also in russia of 17
for more information regarding our 
products see the therapy area review 
from page 48 details of material legal 
proceedings can be found in note 25 to the 
financial statements from page 176 and 
details of relevant risks are set out in the 
principal risks and uncertainties section 
from page 200 see the market definitions 
table on page 232 for information about 
astrazeneca’s market definitions sales 
figures in this geographical review are  
with reference to the customers’ location
us
astrazeneca is the third largest  
prescriptionbased pharmaceutical 
company in the us with a 51  
market share of us pharmaceuticals  
by sales value
sales in the us decreased by 9 to  
9691 million 2012 10655 million 2011 
13426 million as loss of exclusivity on 
seroquel ir in march 2012 as well as the 
impact of other generic competition was 
only partially offset by strong performance 
across our growth platforms including 
brilinta symbicort and our diabetes 
franchise our diabetes franchise increased 
by 225 million or 62 brilinta achieved 
sales of 73 million brilinta total prescription 
volume growth in 2013 is equivalent to 22 
times 2012 while the oral antiplatelet oap 
market has declined by 35 and all other 
branded oaps have lost volume brilinta’s 
newtobrand prescription share is 68 
versus 39 at the end of 2012 crestor 
achieved sales of 2912 million 2012 
3164 million 2011 3074 million and  
a total prescription share within the statin 
market of 106 in december 2013  
while crestor sales declined 8 on lower 
demand with volume decline contributing 
7 crestor continued to demonstrate 
resilience in the highly competitive statin 
market 86 of which is generic crestor’s 
existing patient base remained solid and 
continuing patients represented 95 of 
crestor’s volume crestor’s commercial
medicare preferred access was 84  
at the end of 2013 2012 87 2011 88 
in 2013 crestor was the second most 
prescribed branded pharmaceutical  
in the us 
symbicort pmdi continued to deliver  
strong growth in the us with sales up  
23 to 1233 million with volume increase 
contributing 17 2012 1003 million 2011 
846 million and prescription growth of 
164 versus 2012 it achieved a 262 
total prescription share in the month of 
december 2013 up 39 percentage points 
over the month of december 2012 in the 
inhaled corticosteroidlongacting 
beta
2agonist market 
onglyzakombiglyze revenues in the  
us were up 12 to 265 million 2012  
237 million 2011 156 million primarily 
driven by higher average net selling prices 
as volume remained stable over the prior 
year as the dpp4 market grew by 51  
in 2013 versus 2012
during 2013 following the completion  
of bms’s acquisition of amylin in 2012 
astrazeneca and bms developed and 
commercialised amylin’s portfolio of 
products related to diabetes and other 
metabolic diseases bydureon revenues in 
the us were 131 million as 2013 included  
a full calendar year of revenue bydureon 
captured more than one in five new glp1 
patient treatment decisions and achieved  
a 45 total prescription market share gain 
in 2013 with a total prescription market 
share of 17 5 of the rapidly growing  
glp1 market in december 2013 byetta 
achieved sales of 152 million and symlin 
sales of 42 million 
in 2013 sales of synagis were up 1 to 
617 million a key driver of the growth  
was the annual price increase which  
was partially offset by the continued 
implementation of a more restrictive payer 
policy and medicaid patient migration  
from fee for services to managed 
medicaid resulting in lower volume  
flumist quadrivalent launched in the us  
in 2013 as the first and only fdaapproved 
nasal spray flu vaccine to help protect 
against four strains of influenza flumist 
revenues in the us were up 14 to  
199 million 2012 174 million 2011  
160 million
additional information financial statements corporate governance strategic report
217 astrazeneca annual report and form 20f information 2013 nexium was the third most prescribed 
branded pharmaceutical in the us in the 
face of continuing generic otc and pricing 
pressures nexium sales declined 7 to 
2123 million 2012 2272 million 2011 
2397 million nexium remains the 
branded market leader retaining significant 
prescription market share and volume  
within the proton pump inhibitor class
the loss of exclusivity for seroquel ir in 
march 2012 and unfavourable reserve 
adjustments for medicaid liabilities and 
provisions taken on channel inventories 
resulted in negative sales for 2013 of   
17 million 2012 697 million 2011  
3344 million the presence of generic 
competition has also impacted the 
prescription volume of seroquel xr  
sales of seroquel xr were down 8  
to 743 million 2012 811 million 2011 
779 million driven by lower volume  
other drivers of the sales decline included 
additional generic competition affecting 
sales of toprolxl which were down to  
131 million 2012 320 million 2011  
404 million and the loss of exclusivity 
impact on atacand with sales down  
to 72 million 2012 150 million 2011  
182 million
in march 2010 the affordable care act 
came into force it has had and is expected 
to continue to have a significant impact on 
our us sales and the us healthcare industry 
as a whole in 2013 the overall reduction in 
our profit before tax for the year due to 
higher minimum medicaid rebates on 
prescription drugs discounts on branded 
pharmaceutical sales to medicare part d 
beneficiaries and an industrywide excise 
fee was 933 million 2012 858 million 
this amount reflects only those effects of 
the affordable care act that we know have 
had or will have a direct impact on our 
financial condition or results of operations 
and which we are therefore able to quantify 
based on known and isolatable resulting 
changes in individual financial items within 
our financial statements there are  
other potential indirect or associated 
consequences of the implementation of  
the affordable care act which continue to 
evolve and which cannot be estimated but 
could have similar impacts these include 
broader changes in access to or eligibility 
for coverage under medicare medicaid or 
similar government programmes these 
could indirectly impact our pricing or sales 
of prescription products within the private 
sector by their nature and the fact that 
these potentially numerous consequences 
are not directly linked to a corresponding 
and quantifiable impact on our financial 
statements it is not possible to accurately 
estimate the financial impact of these 
potential consequences of the affordable 
care act or related legislative changes when 
taken together with the number of other 
market and industryrelated factors that can 
also result in similar impacts further details 
on the impact of the affordable care act are 
contained in the pricing pressure section 
from page 15 and the principal risks and 
uncertainties section from page 200
currently there is no direct government 
control of prices for commercial prescription 
drug sales in the us however some 
publicly funded programmes such as 
medicaid and tricare department of 
veterans affairs have statutorily mandated 
rebates and discounts that have the effect 
of price controls for these programmes 
additionally pressure on pricing availability 
and utilisation of prescription drugs for both 
commercial and public payers continues  
to increase this is driven by among other 
things an increased focus on generic 
alternatives primary drivers of increased 
generic use are budgetary policies within 
healthcare systems and providers including 
the use of ‘generics only’ formularies  
and increases in patient coinsurance  
or copayments in 2013 86 of the 
prescriptions dispensed in the us were 
generic while it is unlikely that there  
will be widespread adoption of a broad 
national price control scheme in the near 
future there will continue to be increased 
attention to pharmaceutical prices and  
their impact on healthcare costs for the 
foreseeable future
rest of world
sales performance outside the us in 2013 
was down by 4 to 16020 million 2012 
17 318 million 2011 20165 million due  
to the ongoing impact of loss of exclusivity 
in 2012 of certain key products competition 
from generic products and the continuing 
challenging economic environment this 
trend was partially offset by delivery on  
our growth platforms with brilinta up to 
210 million 2012 70 million 2011  
10 million our diabetes franchise up  
to 197 million 2012 86 million 2011  
55 million and symbicort up by 4 to 
2250 million 2012 2191 million 2011 
2302 million emerging markets delivered 
a strong performance up 8 with sales  
of 5389 million 2012 5095 million  
2011 5040 million 
europe
astrazeneca is the ninth largest 
pharmaceutical company in europe  
with a 31 market share of prescription 
sales by value 
despite a slight improvement in conditions 
the macroeconomic situation remains 
challenging with the ongoing impact of 
austerity measures leading to increased 
pressure on healthcare budgets most 
governments in europe intervene directly  
to control the price volume and 
reimbursement of medicines several 
governments have imposed price 
reductions and increased the use of  
generic medicines as part of healthcare 
expenditure controls a number of  
countries are applying strict criteria for 
costeffectiveness evaluations of medicines 
which has delayed and reduced access  
to medicines for patients in areas of 
important unmet medical need these  
and other measures all contribute to an 
increasingly difficult environment for 
branded pharmaceuticals in europe 
total sales in europe were down 9 to 
6658 million 2012 7 143 million 2011 
9224 million volume erosion on seroquel 
ir seroquel xr nexium and atacand 
following generic entrants resulted in a 
decrease in sales of 34 to 1106 million 
2012 1643 million 2011 2660 million 
crestor sales declined 3 with a 2 
reduction in volumes and 1 reduction  
in prices as a result of increased statin 
pressure in a number of countries including 
france and italy government interventions 
continue to impact both price and volume 
negatively promotion of vimovo and 
axanum was discontinued and sales  
of 36 million 2012 23 million 2011  
7 million were achieved
our growth platform sales partially  
offset these trends brilique sales  
reached 163 million 2012 57 million 
2011 9 million our diabetes franchise 
generated sales of 119 million 2012  
50 million reflecting start of marketing  
the amylin portfolio respiratory sales 
included strong symbicort performance 
with sales reaching 1502 million 2012 
1465 million 201 1 1592 million as 
volumes grew by 3 while prices fell by 2
in germany sales fell by 18 to 657 million 
2012 775 million 2011 1189 million 
mainly driven by market entries of generic 
versions in 2012 of atacand sales declined 
to 69 million 2012 141 million 2011  
255 million and seroquel xr sales 
declined to 42 million 2012 93 million 
2011 151 million 
in the uk and ireland sales were broadly 
flat at 766 million 2012 764 million  
2011 987 million flumist experienced 
volume growth under a new government 
contract with sales increasing to 38 million 
2012 1 million 2011 nil the uk and 
ireland experienced ongoing volume 
erosion on seroquel ir and seroquel xr 
following generic entrants with sales 
declining to 30 million 2012 72 million 
2011 141 million 
sales in france decreased by 10 to 
1212 million 2012 1314 million 2011 
1740 million driven largely by volume 
erosion on nexium atacand and arimidex 
following generic entrants and subsequent 
government interventions increased 
pressure on the statin market has adversely 
affected crestor  with sales down 2 to 
428 million 2012 424 million 2011  
421 million france experienced launch 
218 astrazeneca annual report and form 20f information 2013
additional information  geographical review growth of seroquel xr in 2013 of 52  
with sales reaching 59 million 2012  
37 million 2011 5 million and brilique 
with 18 million of sales 2012 2 million 
2011 nil 
sales in spain and italy were down by  
3 to 507 million 2012 510 million 201 1 
708 million and by 12 to 792 million 
2012 876 million 2011 1113 million 
respectively mainly driven by generic 
entrants and the implementation of volume 
prescription controls associated with 
existing and new austerity measures
established row
established row sales decreased by  
10 to 3973 million 2012 5080 million 
2011 5901 million the entry of generic 
competition to crestor in canada and 
seroquel xr and arimidex in australia was 
partially offset by the successful first full year 
of launch of nexium and faslodex in japan 
the key products with sales growth in 2013 
were symbicort brilinta byetta bydureon 
faslodex and iressa
japan
sales in japan were 2485 million 
increasing by 4 at cer but negatively 
impacted on a reported basis by the 
revaluation of the japanese yen 2012 
2904 million 2011 3064 million strong 
launch performance from nexium and 
crestor was partially offset by declining 
losec and established oncology sales 
nexium achieved sales of 278 million 
2012 78 million 2011 90 million with 
sales accelerating following the lifting in 
october 2012 of the two week prescription 
limit imposed by the japanese ministry  
of health labour and welfare on new 
medicines during the first year from launch 
we saw losec sales declining as patients 
moved to the newer brand
crestor sales grew by 1 1 retaining its 
position as the number one brand in the 
statin market in japan symbicort sales grew 
by 9 achieving market share of 394 
our oncology business remains one of the 
leaders in japan based on the performance 
of established brands including iressa 
arimidex zoladex casodex and the more 
recently launched faslodex in october 
2013 we announced a copromotion 
agreement with janssen to promote an 
innovative oral therapy for the treatment of 
patients with prostate cancer to enhance 
our oncology offering in 2014
canada
due to the ‘at risk’ launch of a generic 
version of seroquel xr in canada in the first 
quarter of 2013 full year impact from the 
loss of exclusivity for crestor in april 2012 
and the continued impact of the ‘at risk’ 
launch of a generic version of nexium in 
2011 total canadian sales decreased by 
40 to 637 million 2012 1090 million 
2011 1604 million combined sales of 
crestor nexium symbicort seroquel ir 
and seroquel xr were 385 million  
742 million 2011 1171 million brilinta 
successfully achieved public reimbursement 
across almost all provinces 
other established row
sales in other established row declined 
by 18 to 851 million 2012 1086 million 
2011 1233 million australian sales 
declined by 18 to 817 million 2012 
1052 million 2011 1166 million following 
a legal challenge to the patent and entry  
of generic competitors to crestor in june 
2013 sales were also impacted by the 
generic erosion of atacand following patent 
expiry in july 2013 the respiratory franchise 
in australia was bolstered in december 
2013 by the launch of symbicort pmdi and 
we have seen steady growth of brilinta
emerging markets
in emerging markets sales increased by 
8 to 5389 million 2012 5095 million 
2011 5040 million which was principally 
driven by growth in china 
in many of the larger markets such as brazil 
and mexico patients tend to pay directly for 
prescription medicines and consequently 
these markets are at less risk of direct 
government interventions on pricing and 
reimbursement in other markets such as 
south korea taiwan and turkey where 
governments pay for medicines we are 
seeing continued efforts to reduce the cost 
of prescriptions in line with the systems in 
europe canada and australia we also 
experienced sales erosion from generics as 
our onmarket portfolio in emerging markets 
continued to age 
china
sales in china excluding hong kong  
grew by 19 to 1840 million 2012  
1512 million 2011 1261 million and 
astrazeneca remained the second largest 
multinational pharmaceutical company in 
china during 2013 we experienced some 
volatility in the chinese market during  
2013 partly as a result of increased market 
scrutiny following the allegations made 
against one of our competitors however 
overall we achieved a strong growth rate 
relative to our peers we saw strong sales  
of launch products crestor and symbicort 
with sales growth of 80 and 61 
respectively and nexium and pulmicort  
are also continuing to grow rapidly in 2013 
brilinta was launched in china and we  
have made positive progress on the  
listing of brilinta byetta and onglyza  
into key hospitals 
other emerging markets
we continued to build our presence in 
russia although sales remained broadly  
in line with 2012 at 310 million 2012  
314 million 2011 284 million impacted  
by generic entries and tender timings  
the russian market saw weak growth 
during 2013 with astrazeneca slightly 
outperforming the market as a result of 
growth in retail market share growth  
of crestor faslodex and symbicort was 
offset by declines across a number of  
older established products
the latin american pharmaceutical market 
continues to grow however in many 
countries growth is being predominantly 
captured by generics branded generics 
and private label product offerings 
astrazeneca sales were down 1 to  
1188 million 2012 1331 million 2011 
1455 million driven principally by declines 
in mexico down 18 with sales also 
slightly down by 1 in brazil mexico has 
been impacted by the increased penetration 
of generic products in the market and 
reduction of inventory held in the supply 
chain by a number of customers brazil has 
felt the effects of the loss of exclusivity on 
nexium which declined by 23 this was 
partially offset by argentina up 22 and 
sales growth in venezuela up 7
in the middle east and africa despite 
political challenges arising from the ‘arab 
spring’ revolutions of 2012 we continued  
to accelerate our growth with sales up 6 
the impact of government interventions has 
been less than expected with a delay in the 
implementation of reference pricing across 
a number of markets south africa algeria 
and egypt turkey saw a slight decline in 
sales of 3 with nexium impacted by 
generic erosion and a price reference 
reduction other key markets in this area 
include saudi arabia and the gulf states 
which grew at 9 and 10 respectively 
sales in the asia area increased by 8  
to 900 million 2012 829 million 2011  
883 million the increase was driven  
by south korea where sales grew 12  
to 280 million 2012 239 million 2011  
235 million due primarily to strong crestor 
growth sales in india grew 12 in 2013  
to 70 million 2012 67 million 2011  
110 million following supply limitations in 
2012 sales in thailand decreased by 12 
to 87 million 2012 97 million 2011  
106 million as a result of government 
interventions and strong generic penetration 
of crestor
launches in emerging markets in 2013 
included brilinta in china russia the 
caribbean ecuador and costa rica 
forxiga in mexico and kombiglyze in brazil 
and peru following our agreement with 
bms in 2012 from april 2013 a number  
of our international region’s markets began 
promotion of the amylin diabetes products
additional information financial statements corporate governance strategic report
219 astrazeneca annual report and form 20f information 2013 in this section we describe our  
approach to delivering business success 
responsibly summary information about  
our commitment and performance in  
key areas is integrated into the relevant  
sections of this annual report while  
further information about these and other 
areas is available on our website  
wwwastrazenecacomresponsibility
introduction
in the strategy section from page 10 we 
describe our approach to creating value 
across the lifecycle of a medicine our 
distinctive capabilities and our strategy  
all these efforts are underpinned by our 
commitment to operating responsibly  
to ensure the future sustainability of the 
company in a way that adds value for our 
stakeholders to that end our responsible 
business objectives are aligned to and 
support delivery of our business strategy 
our responsible business framework is the 
vehicle for managing commitments that are 
agreed across the group taking account of 
external stakeholder insights and internal 
reputational risk assessment 
the framework encompasses
  bioethics underpinning our accelerated 
drive for innovation with sound bioethics 
worldwide see page 38 
  access to healthcare as we expand our 
geographic footprint exploring ways of 
increasing access to healthcare for more 
people tailored locally to different patient 
needs see pages 41 and 42 
  diversity and inclusion working to ensure 
that diversity in its broadest sense is 
reflected in our leadership and people 
strategies see page 67 
  the environment managing our impact 
on the environment across all our 
operations with a particular focus on 
carbon emissions waste and water use 
see pages 44 and 45
  patient safety maintaining a strong focus 
on patient safety in everything we do 
minimising the risks and maximising the 
benefits of all our medicines throughout 
rd and after launch see pages 38  
and 39
  sales and marketing working to 
consistent global standards of ethical 
sales and marketing practices in all our 
markets as we work to restore growth 
see page 42
  human rights continuing to develop and 
embed a consistent approach to human 
rights across all our worldwide activities 
see pages 68 and 69
  employee safety health and wellbeing 
promoting the safety health and 
wellbeing of all our people worldwide as 
we continue to drive a high performance 
culture and achievement of our business 
goals see page 69
  working with suppliers only working  
with suppliers who have standards 
consistent with our own as we increase 
our outsourcing to drive business 
efficiency see page 44
  community investment making a positive 
contribution to our local communities 
around the world through community 
support programmes consistent with 
improving health and promoting science 
see pages 70 and 71 
while we monitor performance in each  
of these areas of our business we have 
identified three areas of special focus 
access to healthcare diversity and the 
environment in each case we believe  
that we have both the capability and the 
responsibility to implement standards that 
accelerate our business strategy while 
delivering wider benefits to society
a core element of our business strategy  
is valuecreating business development 
activity that strengthens our pipeline and 
accelerates growth this includes targeted 
acquisitions when we acquire companies 
we aim to work with them to align standards 
of responsible business and incorporate the 
companies into the setting of targets and 
measurement of performance
benchmarking
as expectations of stakeholders evolve  
we continue to engage with them and use 
the feedback to inform the development  
of our responsible business strategy and 
risk management planning
we also use the insights we gain from 
external surveys to develop our approach  
in line with global best practice a member 
of the dow jones sustainability index since 
2001 we were once again listed in the 2013 
world index the top 10 of the largest 
2500 companies we also retained our 
listing on the djsi stoxx – european index 
the top 20 of the 600 largest european 
companies for the sixth year running one  
of only four pharmaceutical companies to 
do so out of 14 assessed we achieved a 
total score of 85 2012 83 compared 
with a sector best score of 86 2012 
87 we increased individual scores for 
eight out of 22 criteria for 2013 compared 
to nine out of 22 criteria in 2012 including 
customer relationship management 
innovation management labour practice 
indicators and human rights social 
reporting occupational health and safety 
strategy to improve access to drugs or 
products health outcomes contribution  
and addressing cost burden while these 
scores are encouraging we lost ground  
in some areas including corporate 
governance environmental reporting 
environmental policymanagement  
system operational ecoefficiency  
climate strategy talent attraction and 
retention and stakeholder engagement  
to better understand these lower scores 
we commissioned an indepth external 
benchmark survey and the analysis will be 
used to inform our improvement planning
responsible business governance
the set is responsible for our responsible 
business framework and nonexecutive 
director nancy rothwell oversees 
implementation and reporting to the board 
senior managers throughout the group  
are accountable for operating responsibly 
within their areas taking into account 
national functional and site issues and 
priorities line managers are accountable 
for ensuring that their teams understand  
the requirements and that people are  
clear about what is expected of them  
as they work to achieve astrazeneca’s 
business goals
our responsible business council  
the council is chaired by our executive 
vicepresident human resources  
corporate affairs and members include 
senior leaders from each relevant set  
area its agenda is focused on driving 
longterm value creation by agreeing 
among other things
  responsible business priorities for the 
group in line with strategic business 
objectives
  managing and monitoring the annual 
process of setting responsible business 
objectives and targets recorded in the 
responsible business plan as well as 
reviewing performance against kpis 
  appropriate policy positions to support 
astrazeneca’s business objectives and 
reputation management
responsible business
220 astrazeneca annual report and form 20f information 2013
additional information the council is supported by a responsible 
business working group the working 
group of set area representatives  
among other things the working group 
continuously reviews external issues with 
the potential to impact astrazeneca and  
as appropriate prepares management  
and measurement proposals for the 
council’s consideration 
external assurance 
bureau veritas has provided external 
assurance to a limited level on the 
responsible business information contained 
within this annual report 
  patient safety pages 38 and 39
  clinical trials and clinical trial 
transparency page 39
  animal research page 39
  increasing access to healthcare  
pages 41 and 42
  sales and marketing ethics page 42
  working with suppliers page 44
  environmental impact page 44 and 45
  improving the strength and diversity  
of the talent pipeline pages 67 and 68
  human rights pages 68 and 69
  safety health and wellbeing page 69
  community investment pages 70  
and 71
  responsible business pages 220  
and 221
based on the evidence provided and 
subject to the scope objectives and 
limitations defined in the full assurance 
statement nothing has come to the 
attention of bureau veritas causing them  
to believe that the responsible business 
information contained within this annual 
report is materially misstated bureau 
veritas is an independent professional 
services company that has a long history  
of providing independent assurance 
services in environmental health safety 
social and ethical management
the assurance statement including scope 
methodology overall opinion and limitations 
and exclusions is available on our website at 
wwwastrazenecacomresponsibility 
carbon reporting 
the above table provides data on our global 
greenhouse gas emissions for 2013
we have reported on all of the emission 
sources required under the quoted 
companies greenhouse gas emissions 
directors’ reports regulations 2013 
these sources fall within our consolidated 
financial statements we do not have 
responsibility for any emission sources  
that are not included in our consolidated 
financial statements 
we have used the ghg protocol corporate 
accounting and reporting standard 
revised edition emission factors for 
electricity have been derived from the 
international energy agency and usepa 
egrid databases and for all other fuels  
and emission sources from the 2006  
ipcc guidelines for national greenhouse 
gas inventories
bureau veritas has undertaken a limited 
assurance on the 2013 ghg emissions data 
the assurance statement including scope 
methodology overall opinion and limitations 
and exclusions is available on our website at 
wwwastrazenecacomresponsibility 
 
carbon reporting 
global greenhouse gas emissions data for period 1 january 2013 to 31 december 2013
tonnes of co 2e
2013 2012 2011 2010
emissions from 
combustion of fuel and operation of facilities
1
 324600 318700 372900 396100
electricity heat steam and cooling purchased for own use 275100 277100 333700 359100
company’s chosen intensity measurement 
emissions reported above normalised to million us dollar revenue 233 213 210 227
supplemental information 
net electricity heat steam and cooling emissions after write down due to voluntary purchase of electricity 
supplied under certified low carbon supply contracts or carbon certificates
2
237800 250800 304100 329800
supply chain emissions 
upstream emissions from personnel air travel goods transport and waste incineration 155400 169800 193100 176600
downstream emissions from hfa propellants released during patient use of our inhaled medicines 352000 299600 236700 220600
1
  included in this section are greenhouse gases from direct fuel combustion process and engineering emissions at our sites and from fuel use in our vehicle fleet
2
  some electricity supplied to our uk sites has been provided under a green power contract and is backed up with an equivalent quantity of renewable energy guarantees of origin and some of the 
electricity consumed at our us sites is covered by purchase of renewable energy certificates
additional information financial statements corporate governance strategic report
221 astrazeneca annual report and form 20f information 2013 results of operations – summary analysis of year to 31 december 2012
2012 reported operating profit
2012 2011 percentage of sales 2012 compared with 2011
reported
m
cer 
growth
m
growth
due to
exchange
effects
m
reported
m
reported
2012

reported
2011

cer 
growth

reported 
growth

revenue 27973 4965 653 33591 15 17
cost of sales 5393 528 105 6026 193 179 9 11
gross profit 22580 4437 548 27565 807 821 16 18
distribution costs 320 16 10 346 11 10 5 8
research and development 5243 208 72 5523 188 165 4 5
selling general and administrative costs 9839 1134 188 11161 352 332 10 12
profit on disposal of astra tech – 1483 – 1483 – 44 na na
other operating income and expense 970 211 18 777 35 23 27 25
operating profit 8148 4351 296 12795 291 381 34 36
net finance expense 502 512
profit before tax 7646 12283
taxation 1376 2333
profit for the period 6270 9950
basic earnings per share  495 729
 restated on the adoption of ias 19 2011 as detailed in the group accounting policies section on page 136
2012 reconciliation of reported results to core results
core 2012 
compared with 2011
2012
reported
m
restructuring
costs
m
intangible 
amortisation 
m
intangible
impairments
m
legal 
provisions 
and other
m
2012 
core
m
cer 
growth 

actual
growth

gross profit 22580 136 325 – – 23041 15 17
gross margin  807 824
distribution costs 320 – – – – 320 5 8
research and development 5243 791 25 186 – 4241 4 5
selling general and administrative costs 9839 631 686 – 133 8389 13 15
other operating income and expense 970 – 98 – – 1068 29 26
operating profit 8148 1558 1134 186 133 11159 17 20
operating margin  291 399
taxation 1376 375 194 45 32 2022
basic earnings per share  495 094 075 011 008 683
 restated on the adoption of ias 19 2011 as detailed in the group accounting policies section on page 136
  each of the measures in the core column in the above table are nongaap measures core results for 2012 have been restated according to the group’s updated definition of core financial 
measures which has been implemented with effect from 2013 first quarter results reported and core results have also been restated to reflect the adoption of ias 19 2011 a reconciliation of our 
previous reported 2012 core numbers to our revised 2012 core numbers as included above is provided on page 224
2012 revenue decreased by 15 on a cer 
basis and 17 on a reported basis more 
than 13 percentage points of the decline at 
cer approximately 45 billion was related 
to loss of exclusivity on several brands in the 
portfolio seroquel ir revenues declined by 
3 billion and regional losses of exclusivity 
for atacand nexium and crestor combined 
for a further negative impact of more than 
1 billion the disposals of astra tech and 
aptium accounted for a further decrease of 
562 million or approximately 17 percentage 
points of the yearonyear revenue change 
at cer disruptions to our supply chain 
from the implementation of an enterprise 
resource planning it system in our plant in 
sweden early in 2012 negatively impacted 
revenues by approximately 1 2012 
revenue in the us was down 21 reported 
21 with revenue in the rest of world 
down 11 reported 14 emerging 
markets sales increased by 4  
reported flat further details of our  
sales performance are contained in the 
geographical review from page 214
core gross margin in 2012 of 824 
decreased 02 percentage points 
reported 02 percentage points in 2012 
benefits from the absence of the lower 
margin businesses of astra tech and 
aptium and from lower net expense related 
to our accounting for the amendments to 
the merck exit arrangements as detailed  
in note 9 to the financial statements from 
page 150 were more than offset by an 
unfavourable impact from product mix  
core gross margin in 2011 benefited from  
a 131 million settlement of a royalty  
dispute with pdl biopharma inc 
core rd expenditure in 2012 was  
4241 million 4 lower than 2011 
reported 5 higher costs from spending 
on inlicensed acquired or partnered 
projects including 151 million relating to 
amylin ardea and amgen were more than 
offset by reduced spend on other projects 
core sga costs of 8389 million in 2012 
were 13 lower than in 2011 reported 
15 as a result of spending discipline 
partially offset by amortisation expense 
related to the expansion of our diabetes 
alliance with bms and increased promotional 
costs in emerging markets the excise  
fee imposed by the enactment of us 
healthcare reform measures amounted  
to 28 2011 22 of core sga  
expense for 2012
222 astrazeneca annual report and form 20f information 2013
additional information
financials prior year core other income in 2012 of 1068 million 
was 223 million higher reported growth 
than 2011 principally as a result of  
250 million income from an agreement 
with pfizer for otc rights for nexium
2012 core operating profit was  
11159 million a decrease of 17 
reported 20 core operating margin  
in 2012 declined by 13 percentage  
points reported 16 percentage points  
to 399 as a result of an unfavourable 
impact from lower core gross margin 
combined with higher core rd and  
sga costs as a percentage of revenue 
being only partially mitigated by the 
increased core other income for 2012
core eps was 683 in 2012 down 8 
reported 11 lower than the decline  
in core operating profit as a result of the 
benefits from net share repurchases and  
a lower tax rate 
pretax adjustments to arrive at core 
amounted to 3011 million in 2012 
2011 1137 million excluded from  
2012 core results were 
  restructuring costs totalling 1558 million 
2011 1161 million incurred as the 
group commenced the third phase of 
restructuring announced in february 
2012 
  amortisation totalling 1134 million  
2011 771 million with the increase 
driven by the additional amortisation 
arising from the amendment to the merck 
exit arrangements during 2012 and  
our collaboration with bms on amylin 
products entered into in 2012 as detailed 
in note 9 to the financial statements  
from page 150
  186 million 2011 553 million of 
intangible asset impairments including 
50 million following the group’s decision 
not to pursue a regulatory filing for 
tc5214
  72 million 2011 135 million of legal 
provision charges in respect of ongoing 
seroquel franchise legal matters average 
wholesale price litigation in the us the 
toprolxl antitrust litigation and nexium 
commercial litigation in line with prior 
years these have been excluded from our 
core performance and full details of these 
matters are included in note 25 to the 
financial statements from page 176
  61 million 2011 nil of acquisition and 
transactionrelated expenses in relation  
to our ardea and new bms collaboration 
arrangements further details of these 
transactions are included in note 9 and 
note 22 to the financial statements
  in 2011 the profit on sale of our subsidiary 
astra tech of 1483 million was also 
excluded from core results further 
details of this disposal are included in 
note 22 to the financial statements  
on page 166 
2012 reported operating profit was down 
34 reported 36 at 8148 million 
reported eps was 495 in 2012 down 
29 reported 32 the larger declines 
compared with the respective core  
financial measures were the result of the 
1483 million benefit to reported other 
income in 2011 from the sale of astra tech 
together with higher restructuring and 
amortisation costs in 2012 compared  
with 2011 
net finance expense in 2012 was  
502 million in line with the 512 million 
expense recorded in 2011 net fair  
value losses on longterm debt and 
derivatives were 10 million in 2012  
versus 4 million gains in 2011 this was 
offset by reduced net finance cost on  
the group’s pension schemes 
the 2012 reported taxation charge of 
1376 million 2011 2333 million consists 
of a current tax charge of 1677 million 
2011 2573 million and a credit arising 
from movements on deferred tax of  
301 million 2011 240 million the 2012 
current year tax charge includes a prior 
period current tax credit of 79 million  
2011 102 million the reported tax rate 
for 2012 was 180 2011 190 the  
2012 reported tax rate benefited from  
a 230 million adjustment to deferred tax 
balances following substantive enactment  
in 2012 of a reduction in the swedish 
corporation tax rate from 263 to 22 
which was effective 1 january 2013 and  
a 240 million adjustment in respect of prior 
periods following the favourable settlement 
of a transfer pricing matter excluding these 
items the reported tax rate for 2012 would 
have been 241 this tax rate was applied 
to the taxable 2012 core adjustments to 
operating profit resulting in a core tax rate 
for 2012 of 190 the reported tax rate for 
2011 benefited from a nontaxable gain on 
the disposal of astra tech and a favourable 
adjustment to tax provisions of 520 million 
following the announcement in march 2011 
that hm revenue  customs in the uk and 
the us internal revenue service had agreed 
the terms of an advance pricing agreement 
regarding transfer pricing arrangements for 
astrazeneca’s us business for the period 
from 2002 to the end of 2014 and a related 
valuation matter excluding these benefits 
the reported tax rate for 2011 was 264
total comprehensive income for 2012 
decreased by 3065 million from 2011  
to 6405 million this was driven by  
the decrease in profit for the year of  
3680 million partially offset by an increase 
of 615 million in other comprehensive 
income which was principally due to the 
nonrecurrence in 2012 of 657 million of 
actuarial losses recorded in 2011 on our 
defined benefit schemes arising from lower 
discount rates applied to our longterm 
pension obligations reflecting external 
market conditions
cash flow and liquidity – 2012
all data in this section is on a reported 
basis 
cash generated from operating  
activities was 6948 million in the year  
to 31 december 2012 compared with 
7 821 million in 2011 the decrease  
of 873 million was primarily driven  
by lower operating profits offset by  
lower tax payments
investment cash outflows of 5607 million 
in 2012 included the purchases of ardea 
1187 million and intangible assets 
associated with our collaboration with  
bms on amylin 3358 million the 2011 
investment cash inflow of 577 million 
benefited from the sale of astra tech 
1772 million 
net cash distributions to shareholders 
decreased from 9370 million in 2011 to 
5871 million in 2012 the reduction driven 
by the suspension of our share repurchase 
programme in october 2012 included in 
2012 net cash distributions to shareholders 
were dividend payments of 3665 million 
2011 3764 million 
at 31 december 2012 outstanding gross 
debt interestbearing loans and borrowings 
was 10310 million 2011 9328 million  
of this gross debt 901 million was due 
within one year including 774 million of 
commercial paper borrowings 2011 nil 
with various shortterm maturities all within 
90 days in 2011 amounts due within one 
year included 1769 million relating to 
current instalments of loans 
during september 2012 the company 
issued 2 billion of new longterm debt in 
two tranches 1 billion maturing in 2019 
with a coupon of 195 and 1 billion 
maturing in 2042 with a coupon of 400 
net proceeds of 1980 million from the 
issue were used to repay a 175 billion 
bond with a coupon of 540 maturing  
in september 2012 and for general 
corporate purposes 
net debt was 1369 million at the end  
of 2012 decreased from net funds of 
2849 million at the end of 2011
financial position – 2012
all data in this section is on a reported 
basis
in 2012 net assets increased by  
480 million to 23946 million the  
increase in net assets was broadly as a 
result of the group profit of 6270 million 
offset by dividends of 3619 million and  
net share repurchases of 2206 million
property plant and equipment
property plant and equipment decreased 
by 336 million to 6089 million in 2012 
additions of 772 million 2011 807 million 
were offset by depreciation of 1023 million 
2011 1086 million and disposals of  
224 million 2011 233 million
additional information financial statements corporate governance strategic report
223 astrazeneca annual report and form 20f information 2013 goodwill and intangible assets
our goodwill of 9898 million at  
31 december 2012 2011 9862 million 
principally arose on the acquisition of 
medimmune in 2007 and the restructuring 
of our us joint venture with merck in 1998 
goodwill of 30 million arising on our 
acquisition of ardea as detailed in note 22 
to the financial statements on page 166  
was capitalised in 2012
intangible assets amounted to 16448 million 
at 31 december 2012 201 1 10980 million 
intangible asset additions were 6916 million 
in 2012 2011 442 million including  
1464 million arising on the acquisition  
of ardea 3358 million arising from the 
expansion of our diabetes alliance with bms 
and 1475 million in connection with our 
merck arrangements amortisation in  
2012 was 1296 million 2011 911 million 
and impairments totalled 199 million  
2011 553 million further details of  
our additions to intangible assets and 
impairments recorded are included in  
note 9 to the financial statements from 
page 150 
receivables payables and provisions
trade receivables decreased by  
934 million to 5696 million in line  
with lower revenues in 2012 
2012 other receivables decreased by  
402 million to 835 million as a result of 
monies being released from externally held 
settlement funds in relation to seroquel 
franchise legal matters prepayments and 
accrued income in 2012 increased by  
563 million driven principally by an 
increase in prepayments related to our 
amylin transaction see note 9 to the 
financial statements on page 150
trade and other payables increased by 
862 million in 2012 to 10222 million  
with increases in accruals of 1323 million 
due to our merck exit commitments  
as detailed in note 9 to the financial 
statements from page 150 being offset  
by a decrease in rebates and chargeback 
accruals of 799 million the 2012 decrease 
in rebates and chargebacks was principally 
driven by the reduction in us revenues 
recorded in 2012 further details of the 
movements on rebates and chargebacks 
are included from page 83
the reduction in provisions of 518 million  
in 2012 included 1096 million of additional 
charges recorded in 2012 offset by  
1476 million of cash payments included 
within the 1096 million of charges for  
2012 was 873 million for our global 
restructuring initiative and 90 million  
in respect of legal charges 2012 cash 
payments of 1476 million included a 
reduction in our seroquel franchiserelated 
provisions of 427 million following release 
of monies from our settlement funds as 
detailed above and 853 million for our 
global restructuring programmes
tax payable and receivable
net income tax payable in 2012 decreased 
by 275 million to 2059 million principally 
due to the settlement of a transfer pricing 
matter as detailed in note 4 to the financial 
statements from page 143 our 2012  
tax receivable balance of 803 million 
comprised tax owing to astrazeneca  
from certain governments expected to be 
received on settlements of transfer pricing 
audits and disputes see note 25 to the 
financial statements on page 183 and 
cash tax timing differences net deferred 
tax liabilities increased by 244 million  
in 2012
retirement benefit obligations
net retirement benefit obligations decreased 
by 409 million in 2012 driven by a lump 
sum payment of £300 million 463 million 
made into the uk defined benefit scheme 
revised core financial measures
as detailed in our 2012 annual report  
and form 20f on pages 97 and 98  
with effect from our first quarter results  
in 2013 the group updated its definition  
of core financial measures to exclude all 
intangible asset amortisation charges  
and impairments except those for itrelated 
intangibles 
our previous definition of core numbers 
excluded certain significant items such as 
charges and provisions related to our global 
restructuring programmes amortisation  
and impairment of the significant intangibles 
relating to our acquisition of medimmune in 
2007 and our exit arrangements with merck 
in the us and other specified items the 
items excluded from core results under our 
previous definition remain a constituent part 
of the new definition
as intangible assets acquired as a result  
of business development transactions 
become an increasing proportion of the 
group’s asset base our updated definition 
provides better clarity of the impact from 
amortisation and impairment charges 
included in reported results and in addition 
while recognising that nongaap measures 
differ between companies we consider that 
it aids comparability of our results versus 
our peers
further details of adjustments made to  
our reported performance in arriving at  
our revised core balances are included  
on page 76
the adjustments that have been made to 
our 2012 core numbers in transitioning from 
our previous core definition to our revised 
core definition are detailed in the table  
above these include the adjustment made 
to both our reported and core balances 
following the adoption of the amendments 
contained in ias 19 2011 as detailed on 
page 136
revised core additional
adjustments
2012 previous 
core definition 
as previously
disclosed
m 
amortisation
m
impairments
m
ias 19 2011 
adjustments
m
2012 
new core 
values
m 
revenue 27973 – – – 27973
cost of sales 5257 325 – – 4932
gross profit 22716 325 – – 23041
distribution costs 320 – – – 320
research and development 4452 25 186 – 4241
selling general and administrative costs 8541 152 – – 8389
other operating income and expense 1027 41 – – 1068
operating profit 10430 543 186 – 11159
taxation 1885 107 45 15 2022
basic earnings per share  641 035 011 004 683
224 astrazeneca annual report and form 20f information 2013
additional information  financials prior year shareholder information
astrazeneca plc share listings and prices
2009 2010 2011 2012 2013
ordinary shares in issue – millions 
at year end 1451 1409 1292 1247 1257 
weighted average for year 1448 1438 1361 1261 1252
stock market price – per ordinary share 
highest pence 2947 3385 3194 31115 3612
lowest pence 2147 2732 25435 2591 29095
at year end pence 29105 2922 2975 29095 35745
percentage analysis of issued share capital at 31 december 
by size of account 
number of ordinary shares
2009

2010

2011

2012

2013

1 – 250 05 05 06 06 05
251 – 500 07 06 07 07 06
501 – 1000 08 08 08 08 08
1001 – 5000 11 11 12 11 11
5001 – 10000 02 02 02 02 02
10001 – 50000 11 10 10 10 10
50001 – 1000000 130 128 138 126 123
over 1000000
1
826 830 817 830 835
1
 includes euroclear and adr holdings
at 31 december 2013 the company had 103411 registered holders of 1257 170087 ordinary shares there were 109767 holders  
of ordinary shares held under the euroclear services agreement representing 118 of the issued share capital of the company and 
approximately 250000 holders of adrs representing 134 of the issued share capital of the company the adrs each of which is 
equivalent to one ordinary share are issued by jpmorgan chase bank jpmorgan
in 1999 in connection with the merger between astra and zeneca through which the company was formed the company’s share capital 
was redenominated in us dollars on 6 april 1999 zeneca shares were cancelled and us dollar shares issued credited as fully paid  
on the basis of one dollar share for each zeneca share then held this was achieved by a reduction of capital under section 135 of the 
companies act 1985 upon the reduction of capital becoming effective all issued and unissued zeneca shares were cancelled and the 
sum arising as a result of the share cancellation credited to a special reserve which was converted into us dollars at the rate of exchange 
prevailing on the record date this us dollar reserve was then applied in paying up at par newly created us dollar shares
at the same time as the us dollar shares were issued the company issued 50000 redeemable preference shares for cash at par  
the redeemable preference shares carry limited class voting rights no dividend rights and are capable of redemption at par at the 
option of the company on the giving of seven days’ written notice to the registered holder of the redeemable preference shares
a total of 826 million ordinary shares were issued to astra shareholders who accepted the merger offer before the final closing date  
21 may 1999 the company received acceptances from astra shareholders representing 996 of astra’s shares and the remaining  
04 was acquired in 2000 for cash
since april 1999 following the merger of astra and zeneca the principal markets for trading in the shares of the company are the london 
stock exchange lse the stockholm stock exchange sse and the nyse the table below sets out for 2012 and 2013 the reported 
high and low share prices of the company on the following bases
  for shares listed on the lse the reported high and low middle market closing quotations are derived from the daily official list
  for shares listed on the sse the high and low closing sales prices are as stated in the official list
  for adss listed on the nyse the reported high and low sales prices are as reported by dow jones adr quotations
ordinary lse ordinary sse ads
high pence low pence high sek low sek high us low us 
2012 – quarter 1 31115 27785 3295 2945 4858 4418
– quarter 2 28670 25910 3093 2862 4622 4003
– quarter 3 30960 28820 3264 3073 4836 4501
– quarter 4 30425 27925 3263 3008 4890 4434
2013 – quarter 1 32995 29095 3239 2845 5006 4467
– quarter 2 35215 30525 3549 3174 5301 4722
– quarter 3 33350 31165 3362 3196 5208 4787
– quarter 4 36120 31130 3878 3215 5950 4972
– july 33350 31340 3317 3196 5086 4787
– august 33340 31780 3362 3243 5141 4921
– september 32570 31165 3341 3220 5208 4888
– october 33300 31130 3434 3215 5357 4972
– november 35135 32670 3761 3417 5719 5239
– december 36120 34470 3878 3679 5950 5622
additional information financial statements corporate governance strategic report
225 astrazeneca annual report and form 20f information 2013 major shareholdings
at 31 january 2014 the following had disclosed an interest in the issued ordinary share capital of the company in accordance with the 
requirements of rules 512 or 515 of the uk listing authority’s disclosure and transparency rules
shareholder 
number of 
ordinary shares
date of
disclosure to
company
1
percentage of
issued share
capital
blackrock inc 100885181 8 december 2009 801
invesco limited 72776277 6 october 2009 578
axa sa 56991117 3 february 2009 452
investor ab 51587810 2 february 2012 409
the capital group companies inc 37932044 23 january 2014 301
1
  since the date of disclosure to the company the interest of any person listed above in ordinary shares may have increased or decreased no requirement to notify the company of any increase or 
decrease would have arisen unless the holding moved up or down through a whole number percentage level the percentage level may increase on the cancellation of shares following a repurchase 
of shares under the company’s share repurchase programme or decrease on the issue of new shares under any of the company’s share plans
so far as the company is aware no other person held a notifiable interest in the issued ordinary share capital of the company
changes in the percentage ownership held by major shareholders during the past three years are set out below major shareholders do 
not have different voting rights
shareholder
31 january 
2014
31 january 
2013
2 february
 2012
27 january
 2011
blackrock inc 801 808 787 718 
invesco limited 578 583 567 518 
axa sa 452 457 444 406
investor ab 409 413 402 367
legal  general investment management limited  300 462 450 410
the capital group companies inc 301  300  300  300
adss evidenced by adrs issued by jpmorgan as depositary are listed on the nyse at 31 january 2014 the proportion of ordinary 
shares represented by adss was 1325 of the ordinary shares outstanding
number of registered holders of ordinary shares at 31 january 2014
  in the us 737
 total 102633
number of record holders of adrs at 31 january 2014
  in the us 2024
 total 2032
so far as the company is aware it is neither directly nor indirectly owned or controlled by one or more corporations or by any government
the company does not know of any arrangements the operation of which might result in a change in the control of the company
at 31 january 2014 the total amount of the company’s voting securities owned by directors and officers of the company was
title of class amount owned percentage of class
ordinary shares 443720 004 
related party transactions
during the period 1 january 2014 to 31 january 2014 there were no transactions loans or proposed transactions between the company 
and any related parties which were material to either the company or the related party or which were unusual in their nature or conditions 
see also note 27 to the financial statements on page 184
options to purchase securities from registrant or subsidiaries
a at 31 january 2014 options outstanding to subscribe for ordinary shares were
number of shares subscription price pence normal expiry date
7251738  1882 – 3335 2014 – 2019 
the weighted average subscription price of options outstanding at 31 january 2014 was 2502 pence all options were granted under 
company employee share schemes
b included in paragraph a are options granted to officers of the company as follows
number of shares subscription price pence normal expiry date
182324 1882 – 3335 2016 – 2019 
c at 31 january 2014 none of the directors of the company held options to subscribe for ordinary shares
during the period 1 january 2014 to 31 january 2014 no director exercised any options
226 astrazeneca annual report and form 20f information 2013
additional information  shareholder information dividend payments
for ordinary shares listed on the lse and 
the sse and adrs listed on the nyse the 
record date for the second interim dividend 
for 2013 payable on 24 march 2014 is  
21 february 2014 and the exdividend date 
is 19 february 2014
the record date for the first interim dividend 
for 2014 payable on 15 september 2014 is 
15 august 2014
future dividends will normally be paid  
as follows
  first interim announced in july and 
paid in september
  second interim announced in january 
and paid in march 
shareview
the company’s shareholders with  
internet access may visit the website  
wwwshareviewcouk and register their 
details to create a portfolio shareview is  
a free and secure online service from the 
company’s registrars equiniti limited 
which gives access to shareholdings 
including balance movements indicative 
share prices and information about  
recent dividends
sharegift
the company welcomes and values all  
of its shareholders no matter how many  
or how few shares they own however 
shareholders who have only a small number 
of shares whose value makes it uneconomic 
to sell them either now or at some stage in 
the future may wish to consider donating 
them to charity through sharegift an 
independent charity share donation 
scheme one feature of the scheme is  
that there is no gain or loss for uk capital 
gains tax purposes on gifts of shares 
through sharegift and it may now also  
be possible to obtain uk income tax relief 
on the donation further information about 
sharegift can be found on its website 
wwwsharegiftorg or by contacting 
sharegift on 020 7930 3737 or at  
17 carlton house terrace london  
sw1y 5ah sharegift is administered by 
the orr mackintosh foundation registered 
charity number 1052686 more information 
about the uk tax position on gifts of  
shares to sharegift can be obtained from 
hm revenue  customs on their website 
wwwhmrcgovuk 
the unclaimed assets register
the company supplies unclaimed dividend 
data to the unclaimed assets register 
uar which provides investors who  
have lost track of shareholdings with an 
opportunity to search the uar’s database 
of unclaimed financial assets on payment  
of a small fixed fee the uar donates part 
of the search fee to charity the uar can  
be contacted on 0870 241 1713 or at  
po box 9501 nottingham ng80 1wd
results
unaudited trading results of astrazeneca  
in respect of the first three months of 2014 
will be published on 24 april 2014 and 
results in respect of the first six months of 
2014 will be published on 31 july 2014
documents on display
the articles and other documents 
concerning the company which are referred 
to in this annual report may be inspected 
at the company’s registered office at  
2 kingdom street london w2 6bd 
taxation for us residents
the following summary of material uk and 
us federal income tax consequences of 
ownership of ordinary shares or adrs held 
as capital assets by the us resident holders 
described below is based on current uk 
and us federal income tax law including 
the usuk double taxation convention 
relating to income and capital gains which 
entered into force on 31 march 2003  
the convention this summary does not 
describe all of the tax consequences that 
may be relevant in light of the us resident 
holders’ particular circumstances and tax 
consequences applicable to us resident 
holders subject to special rules such as 
certain financial institutions entities treated 
as partnerships for us federal income  
tax purposes persons whose functional 
currency for us federal income tax 
purposes is not the us dollar taxexempt 
entities persons subject to alternative 
minimum tax persons subject to the 
medicare contribution tax on ‘net 
investment income’ or persons holding 
ordinary shares or adrs in connection  
with a trade or business conducted  
outside of the us us resident holders  
are urged to consult their tax advisers 
regarding the uk and us federal income  
tax consequences of the ownership and 
disposition of ordinary shares or adrs  
in their particular circumstances 
this summary is based in part on 
representations of jpmorgan as depositary 
for adrs and assumes that each obligation 
in the deposit agreement among the 
company jpmorgan and the holders  
from time to time of adrs and any  
related agreements will be performed in 
accordance with its terms the us treasury 
has expressed concerns that parties to 
whom adss are released before shares  
are delivered to the depositary prerelease 
or intermediaries in the chain of ownership 
between holders and the issuer of the 
security underlying the adss may be  
taking actions that are inconsistent with  
the claiming by us holders of adss of 
foreign tax credits for us federal income  
tax purposes such actions would also  
be inconsistent with the claiming of the 
reduced tax rates described below 
applicable to dividends received by certain 
noncorporate us resident holders 
accordingly the availability of the reduced 
tax rates for dividends received by certain 
noncorporate us resident holders could  
be affected by actions that may be taken by 
parties to whom adrs are prereleased
for the purposes of this summary the term 
‘us resident holder’ means a beneficial 
owner of ordinary shares or adrs that  
is for us federal income tax purposes  
a citizen or resident of the us a corporation 
or other entity taxable as a corporation 
created or organised in or under the laws  
of the us any state in the us or the district 
of columbia or an estate or trust the 
income of which is subject to us federal 
income taxation regardless of its source
this summary assumes that we are not 
and will not become a passive foreign 
investment company as discussed overleaf
additional information financial statements corporate governance strategic report
227 astrazeneca annual report and form 20f information 2013 uk and us income taxation  
of dividends
the uk does not currently impose a 
withholding tax on dividends paid by  
a uk company such as the company
for us federal income tax purposes 
distributions paid by the company to a us 
resident holder are included in gross income 
as foreign source ordinary dividend income 
to the extent paid out of the company’s 
current or accumulated earnings and 
profits calculated in accordance with us 
federal income tax principles the company 
does not maintain calculations of its earning 
and profits under us federal income tax 
principles and so it is expected that 
distributions generally will be reported to us 
resident holders as dividends the amount 
of the dividend will be the us dollar amount 
received by the depositary for us resident 
holders of adrs or in the case of ordinary 
shares the us dollar value of the pound 
sterling payments made determined at the 
spot pound sterlingus dollar rate on the 
date the dividend is received by the us 
resident holders regardless of whether the 
dividend is converted into us dollars and it 
will not be eligible for the dividends received 
deduction generally available to us 
corporations if the dividend is converted 
into us dollars on the date of receipt us 
resident holders of ordinary shares 
generally should not be required to 
recognise foreign currency gains or losses 
in respect of the dividend income they  
may have foreign currency gain or loss if the 
amount of such dividend is converted into 
us dollars after the date of its receipt
subject to applicable limitations and the 
discussion above regarding concerns 
expressed by the us treasury dividends 
received by certain noncorporate us 
resident holders of ordinary shares or adrs 
may be taxable at favourable us federal 
income tax rates us resident holders 
should consult their own tax advisers to 
determine whether they are subject to any 
special rules which may limit their ability to  
be taxed at these favourable rates
taxation on capital gains
under present english law individuals who 
are neither resident nor ordinarily resident in 
the uk and companies which are not 
resident in the uk will not be liable for uk 
tax on capital gains made on the disposal  
of their ordinary shares or adrs unless 
such ordinary shares or adrs are held  
in connection with a trade profession or 
vocation carried on in the uk through a 
branch or agency or other permanent 
establishment
a us resident holder will generally recognise 
us source capital gains or losses for us 
federal income tax purposes on the sale or 
exchange of ordinary shares or adrs in an 
amount equal to the difference between the 
us dollar amount realised and such holder’s 
us dollar tax basis in the ordinary shares or 
adrs us resident holders should consult 
their own tax advisers about the treatment 
of capital gains which may be taxed at 
lower rates than ordinary income for 
noncorporate us resident holders and 
capital losses the deductibility of which  
may be subject to limitation
passive foreign investment company 
pfic rules
we believe that we were not a pfic  
for us federal income tax purposes for  
the year ended 31 december 2013 
however since pfic status depends  
on the composition of our income and 
assets and the market value of our assets 
including among others less than 25 
owned equity investments from time to 
time there can be no assurance that we  
will not be considered a pfic for any 
taxable year if we were treated as a pfic 
for any taxable year during which ordinary 
shares or adrs were held certain adverse 
tax consequences could apply to us 
resident holders
information reporting and backup 
withholding
payments of dividends and sales proceeds 
that are made within the us or through 
certain usrelated financial intermediaries 
may be subject to information reporting  
and backup withholding unless i the us 
resident holder is a corporation or other 
exempt recipient or ii in the case of 
backup withholding the us resident holder 
provides a correct taxpayer identification 
number and certifies that it is not subject  
to backup withholding the amount of any 
backup withholding from a payment to  
a us resident holder will be allowed as  
a credit against the holder’s us federal 
income tax liability and may entitle the 
holder to a refund provided that the 
required information is timely supplied to  
the internal revenue service irs
certain us resident holders who are 
individuals and under proposed us 
treasury regulations certain entities  
may be required to report information 
relating to securities issued by nonus 
persons or foreign accounts through which 
the securities are held generally on irs 
form 8938 subject to certain exceptions 
including an exception for securities held  
in accounts maintained by us financial 
institutions us resident holders should 
consult their tax advisers regarding their 
reporting obligations with respect to the 
ordinary shares or adrs
uk inheritance tax
under the current double taxation estates 
convention the estate tax convention 
between the us and the uk ordinary 
shares or adrs held by an individual 
shareholder who is domiciled for the 
purposes of the estate tax convention in 
the us and is not for the purposes of the 
estate tax convention a national of the  
uk will generally not be subject to uk 
inheritance tax on the individual’s death or 
on a chargeable gift of the ordinary shares 
or adrs during the individual’s lifetime 
provided that any applicable us federal  
gift or estate tax liability is paid unless  
the ordinary shares or adrs are part  
of the business property of a permanent 
establishment of the individual in the uk or 
in the case of a shareholder who performs 
independent personal services pertain  
to a fixed base situated in the uk where 
the ordinary shares or adrs have been 
placed in trust by a settlor who at the  
time of settlement was a us domiciled 
shareholder the ordinary shares or  
adrs will generally not be subject to uk 
inheritance tax unless the settlor at the  
time of settlement was a uk national or  
the ordinary shares or adrs are part of  
the business property of a permanent 
establishment of the individual in the uk or 
in the case of a shareholder who performs 
independent personal services pertain  
to a fixed base situated in the uk in the 
exceptional case where the ordinary shares 
or adrs are subject to both uk inheritance 
tax and us federal gift or estate tax the 
estate tax convention generally provides  
for double taxation to be relieved by means 
of credit relief
228 astrazeneca annual report and form 20f information 2013
additional information  shareholder information uk stamp duty reserve tax and  
stamp duty
a charge to uk stamp duty or uk stamp 
duty reserve tax sdrt may arise on the 
deposit of ordinary shares in connection 
with the creation of adrs the rate of stamp 
duty or sdrt will generally be 15 of  
the value of the consideration or in some 
circumstances the value of the ordinary 
shares there is no 15 sdrt charge  
on the issue of ordinary shares or where  
it is integral to the raising of new capital  
the transfer of ordinary shares into the 
adr arrangement 
no uk stamp duty will be payable on the 
acquisition or transfer of existing adrs 
provided that any instrument of transfer or 
written agreement to transfer is executed 
outside the uk and remains at all times 
outside the uk an agreement for the 
transfer of adrs will not give rise to a liability 
for sdrt
a transfer of or an agreement to transfer 
ordinary shares will generally be subject  
to uk stamp duty or sdrt at 05 of  
the amount or value of any consideration 
provided in the case of stamp duty it is 
rounded to the nearest £5
transfers of ordinary shares into crest  
will generally not be subject to stamp duty 
or sdrt unless such a transfer is made for 
a consideration in money or money’s worth 
in which case a liability to sdrt will arise 
usually at the rate of 05 of the value  
of the consideration paperless transfers  
of ordinary shares within crest are 
generally liable to sdrt at the rate of 05 
of the value of the consideration crest  
is obliged to collect sdrt from the 
purchaser on relevant transactions  
settled within the system
exchange controls and other 
limitations affecting security holders
there are no governmental laws decrees  
or regulations in the uk restricting the 
import or export of capital or affecting the 
remittance of dividends interest or other 
payments to nonresident holders of 
ordinary shares or adrs
there are no limitations under english law  
or the articles on the right of nonresident  
or foreign owners to be the registered 
holders of or to exercise voting rights in 
relation to ordinary shares or adrs  
or to be registered holders of notes or 
debentures of zeneca wilmington inc  
or the company
exchange rates 
the following information relating to  
average and spot exchange rates used by 
astrazeneca is provided for convenience
sekus usgbp
average rates statement of comprehensive income statement of cash flows 
2011 65059 15996
2012 67782 15834
2013 65089 15621
end of year spot rates statement of financial position 
2011 69050 15443
2012 65176 16171
2013 64233 16502
additional information financial statements corporate governance strategic report
229 astrazeneca annual report and form 20f information 2013 corporate information
history and development of the 
company
astrazeneca plc was incorporated in 
england and wales on 17 june 1992  
under the companies act 1985 it is a 
public limited company domiciled in the  
uk the company’s registered number 
is 2723534 and its registered office is  
at 2 kingdom street london w2 6bd 
telephone 44 020 7604 8000 from 
february 1993 until april 1999 the 
company was called zeneca group plc 
on 6 april 1999 the company changed  
its name to astrazeneca plc
the company was formed when the 
pharmaceutical agrochemical and specialty 
chemical businesses of imperial chemical 
industries plc were demerged in 1993  
in 1999 the company sold the specialty 
chemical business also in 1999 the 
company merged with astra of sweden  
in 2000 it demerged the agrochemical 
business and merged it with the similar 
business of novartis to form a new 
company called syngenta ag
in 2007  the group acquired medimmune  
a biologics and vaccines business based  
in the us
the group’s corporate office is at  
2 kingdom street london w2 6bd
articles
objects
the company’s objects are unrestricted
any amendment to the articles requires  
the approval of shareholders by a  
special resolution at a general meeting  
of the company
directors
the board has the authority to manage  
the business of the company for example 
through powers to allot and repurchase  
its shares subject where required to 
shareholder resolutions subject to certain 
exceptions directors do not have power  
to vote at board meetings on matters in 
which they have a material interest
the quorum for meetings of the board is a 
majority of the full board of whom at least 
four must be nonexecutive directors in 
the absence of a quorum the directors do 
not have power to determine compensation 
arrangements for themselves or any 
member of the board
the board may exercise all the powers of 
the company to borrow money variation  
of these borrowing powers would require 
the passing of a special resolution of the 
company’s shareholders
all directors must retire from office  
at the company’s agm each year and  
may present themselves for election or 
reelection directors are not prohibited 
upon reaching a particular age from 
submitting themselves for election or 
reelection
within two months of the date of their 
appointment directors are required  
to beneficially own ordinary shares  
of an aggregate nominal amount of at  
least 125 which currently represents  
500 shares
rights preferences and restrictions 
attaching to shares
as at 31 december 2013 the company  
had 1257 170087 ordinary shares and 
50000 redeemable preference shares  
in issue the ordinary shares represent 
9997 and the redeemable preference 
shares represent 003 of the company’s 
total share capital these percentages  
have been calculated by reference to the 
closing midpoint usgbp exchange  
rate on 31 december 2013 as published  
in the london edition of the financial  
times newspaper
as agreed by the shareholders at the 
company’s agm held on 29 april 2010  
the articles were amended with immediate 
effect to remove the requirement for the 
company to have an authorised share 
capital the concept of which was abolished 
under the companies act 2006 each 
ordinary share carries the right to vote  
at general meetings of the company  
the rights and restrictions attaching to  
the redeemable preference shares differ 
from those attaching to ordinary shares  
as follows 
  the redeemable preference shares 
carry no rights to receive dividends
  the holders of redeemable preference 
shares have no rights to receive notices 
of attend or vote at general meetings 
except in certain limited circumstances 
they have one vote for every 50000 
redeemable preference shares held
  on a distribution of assets of the 
company on a windingup or other return 
of capital subject to certain exceptions 
the holders of redeemable preference 
shares have priority over the holders of 
ordinary shares to receive the capital 
paid up on those shares
  subject to the provisions of the 
companies act 2006 the company  
has the right to redeem the redeemable 
preference shares at any time on giving 
not less than seven days’ written notice
there are no specific restrictions on  
the transfer of shares in the company  
which is governed by the articles and 
prevailing legislation
the company is not aware of any 
agreements between holders of shares  
that may result in restrictions on the transfer 
of shares or that may result in restrictions  
on voting rights
action necessary to change the rights  
of shareholders
in order to vary the rights attached to any 
class of shares the consent in writing of  
the holders of threequarters in nominal 
value of the issued shares of that class or 
the sanction of an extraordinary resolution 
passed at a general meeting of such 
holders is required
general meetings
agms and other general meetings as  
from time to time may be required where  
a special resolution is to be passed or a 
director is to be appointed require 21 clear 
days’ notice to shareholders subject to  
the companies act 2006 other general 
meetings require 14 clear days’ notice
for all general meetings a quorum of  
two shareholders present in person or by 
proxy and entitled to vote on the business 
transacted is required unless each of  
the two persons present are corporate 
representatives of the same corporation  
or each of the two persons present are 
proxy of the same shareholder
shareholders and their duly appointed 
proxies and corporate representatives are 
entitled to be admitted to general meetings
limitations on the rights to own shares
there are no limitations on the rights to  
own shares
property
substantially all of our properties are held 
freehold free of material encumbrances  
and are fit for their purpose
230 astrazeneca annual report and form 20f information 2013
additional information  trade marks
astrazeneca the astrazeneca logotype and the astrazeneca symbol are all trade marks of the group 
the following brand names which appear in italics in this annual report are trade marks of the group 
trade mark
accolate entocort nolvadex symbicort turbuhaler
arimidex farxiga onglyza symlin
atacand faslodex oxis turbuhaler synagis
1
 
atacand plus fluenz plendil tenormin
axanum flumist prilosec toprolxl
bricanyl forxiga pulmicort turbuhaler
brilinta iressa pulmicort respules vimovo
brilique kombiglyze pulmicort turbuhaler xigduo
bydureon kombiglyze xr rhinocort xylocaine
byetta komboglyze seloken zestril
caprelsa losec seroquel zoladex
casodex meronem seroquel ir zomig
crestor merrem seroquel xr
diprivan naropin symbicort
emla nexium symbicort smart
1
 astrazeneca owns this trade mark in the us only abbott owns it in the rest of the world
the following brand names which appear in italics in this annual report are trade marks licensed to the group by the entities set out 
below
trade mark owner
cubicin cubist pharmaceuticals inc
epanova chrysalis pharma ag
zinforo forest laboratories inc
the following brand names which appear in italics throughout this annual report are not owned by or licensed to the group and are 
owned by the entities set out below
trade mark owner
lipitor pfizer ireland pharmaceuticals
messenger rna therapeutics moderna therapeutics inc 
additional information financial statements corporate governance strategic report
231 astrazeneca annual report and form 20f information 2013 glossary
market definitions
region country
us us
europe albania germany poland
austria greece portugal
belarus hungary romania
belgium iceland serbia and montenegro
bosnia and 
herzegovina 
ireland slovakia
bulgaria israel slovenia
croatia italy spain
cyprus kazakhstan sweden
czech republic latvia switzerland
denmark lithuania uk
estonia luxembourg ukraine
finland malta
france netherlands
georgia norway
established row australia
canada
japan
new zealand
emerging markets algeria costa rica iran nicaragua singapore uae
argentina cuba iraq oman south africa uruguay
aruba dominican republic jamaica other africa south korea venezuela
bahamas ecuador jordan pakistan sri lanka vietnam
bahrain egypt kuwait palestine sudan yemen
barbados el salvador lebanon panama syria
bermuda guatemala libya peru taiwan
brazil honduras malaysia philippines thailand
chile hong kong mexico qatar trinidad and tobago
china india morocco russia tunisia
colombia indonesia netherlands antilles saudi arabia turkey
 ims health ims midas quantum q3 2013 data is not available or astrazeneca does not subscribe for ims health quarterly data for these countries
the above table is not an exhaustive list of all the countries in which astrazeneca operates and excludes countries with revenue in 2013 
of less than 1 million
established markets means us europe and established row
other africa includes angola botswana ethiopia ghana kenya mauritius mozambique namibia nigeria swaziland tanzania 
uganda zambia and zimbabwe 
asia area comprises india indonesia malaysia philippines singapore south korea sri lanka taiwan thailand and vietnam
us equivalents
terms used in this annual report us equivalent or brief description 
accruals accrued expenses 
allotted issued 
calledup share capital issued share capital 
creditors liabilitiespayables 
debtors receivables and prepaid expenses 
earnings net income 
employee share schemes employee stock benefit plans 
fixed asset investments noncurrent investments 
freehold ownership with absolute rights in perpetuity 
interest payable interest expense 
loans longterm debt 
prepayments prepaid expenses 
profit income 
profit and loss account income statementconsolidated statement of comprehensive income 
share premium account premiums paid in excess of par value of ordinary shares 
shortterm investments redeemable securities and shortterm deposits 
232 astrazeneca annual report and form 20f information 2013
additional information glossary
the following abbreviations and expressions 
have the following meanings when used in  
this annual report
abbvie – abbvie inc 
adc therapeutics – adc therapeutics sàrl
adr – an american depositary receipt 
evidencing title to an ads
ads – an american depositary share 
representing one underlying ordinary share
affordable care act – the patient protection 
and affordable care act which was signed  
into law on 23 march 2010 as amended by the 
health care and education reconciliation act 
which was signed into law on 30 march 2010 
agm – an annual general meeting of the 
company
alphacore – alphacore pharma llc
amgen – amgen inc 
amplimmune – amplimmune inc
amylin – amylin pharmaceuticals llc formerly 
amylin pharmaceuticals inc
anda – an abbreviated new drug application 
which is a marketing approval application for a 
generic drug submitted to the fda
annual report – this annual report and form 
20f information 2013
api – active pharmaceutical ingredient
ardea – ardea biosciences inc 
articles – the articles of association of the 
company
astellas – astellas pharma inc
astra – astra ab being the company with 
whom the company merged in 1999 
astra tech – astra tech ab 
astrazeneca – the company and its 
subsidiaries
azip – astrazeneca investment plan
biologics – a class of drugs that are produced 
in living cells
biosimilars – a copy of a biologic that is 
sufficiently similar to meet regulatory 
requirements
bms – bristolmyers squibb company
board – the board of directors of the company
bureau veritas – bureau veritas uk limited
ceo – the chief executive officer of the 
company
cer – constant exchange rates
cfda – china food and drug administration
cfo – the chief financial officer of the 
company
cis – commonwealth of independent states
code of conduct – the group’s code of 
conduct
company or parent company – astrazeneca 
plc formerly zeneca group plc zeneca
complete response letter crl – a letter 
issued by the fda communicating its decision  
to a drug company that its nda or biological 
licensing application is not approvable as 
submitted the submitting drug company is 
required to respond to the complete response 
letter if it wishes to pursue an approval for  
its submission
copd – chronic obstructive pulmonary disease 
corporate integrity agreement cia –  
the agreement described in the us corporate 
integrity agreement reporting section on  
page 42
cvmd – cardiovascular and metabolic disease
director – a director of the company
doj – the united states department of justice
earnings per share eps – profit for the year 
after tax and noncontrolling interests divided  
by the weighted average number of ordinary 
shares in issue during the year
ec – european commission
efpia – european federation of pharmaceutical 
industries and associations
ema – european medicines agency
evp – executive vicepresident 
eu – the european union
fda – the us food and drug administration 
which is part of the us department of health 
and human services agency which is the 
regulatory authority for all pharmaceuticals 
including biologics and vaccines and medical 
devices in the us
fibrogen – fibrogen inc
forest – forest laboratories holdings limited
gaap – generally accepted accounting 
principles
gmd – global medicines development
gpps – global product and portfolio strategy 
gross margin – the margin as a percentage by 
which sales exceed the cost of sales calculated 
by dividing the difference between the two by 
the sales figure
group – astrazeneca plc and its subsidiaries
gsk – glaxosmithkline plc
g7 – the us japan france germany italy the 
uk and canada
horizon pharma – horizon discovery limited
hr – human resources
ia – the group’s internal audit services function
ias – international accounting standards
ias 19 – ias 19 employee benefits
ias 32 – ias 32 financial instruments 
presentation
ias 39 – ias 39 financial instruments 
recognition and measurement
iasb – international accounting standards 
board
ifrs – international financial reporting 
standards or international financial reporting 
standard as the context requires
ifrs 8 – ifrs 8 operating segments
imed – innovative medicines and early 
development
immunocore – immunocore limited
ip – intellectual property
ironwood – ironwood pharmaceuticals inc
is – information services
isas – international standards on auditing
it – information technology
janssen – janssen pharmaceutical kk and 
janssen pharmaceutica nv
kpi – key performance indicator
krona kronor or sek – references to the 
currency of sweden
lean – means enhancing value for customers 
with fewer resources 
lti – long term incentive in the context of 
share plan remuneration arrangements
maa – a marketing authorisation application 
which is an application for authorisation to place 
medical products on the market this is a 
specific term used in the eu and european 
economic area markets
mab – monoclonal antibody a biologic that is 
specific that is it binds to and attacks one 
particular antigen 
mat – moving annual total
medimmune – medimmune llc formerly 
medimmune inc
merck – merck sharp  dohme corp formerly 
merck  co inc
moderna therapeutics – moderna 
therapeutics inc
myriad genetics – myriad genetics 
laboratories inc
nda – a new drug application to the fda for 
approval to market a new medicine in the us
nme – new molecular entity
novartis – novartis pharma ag
nsaid – a nonsteroidal antiinflammatory drug
nyse – the new york stock exchange
nm – not meaningful
omthera – omthera pharmaceuticals inc 
operating profit – sales less cost of sales less 
operating costs plus operating income
ordinary share – an ordinary share of  
025 each in the share capital of the company
orphan drug – a drug which has been 
approved for use in a relatively lowincidence 
indication an orphan indication and has been 
rewarded with a period of market exclusivity  
the period of exclusivity and the available  
orphan indications vary between markets
otc – overthecounter
additional information financial statements corporate governance strategic report
233 astrazeneca annual report and form 20f information 2013 paediatric exclusivity – in the us a  
sixmonth period of exclusivity to market a  
drug which is awarded by the fda in return for 
certain paediatric clinical studies using that drug  
this sixmonth period runs from the date of 
relevant patent expiry analogous provisions  
are available in certain other territories  
eg european supplementary protection 
certificate spc paediatric extensions
patent term extension pte – an extension 
of up to five years in the term of a us patent 
relating to a drug which compensates for delays 
in marketing resulting from the need to obtain 
fda approval the analogous right in the eu  
is a spc
pearl therapeutics – pearl therapeutics inc
pfizer – pfizer inc
phase i – the phase of clinical research where  
a new drug or treatment is tested in small groups 
of people 20 to 80 to check that the drug can 
achieve appropriate concentrations in the body 
determine a safe dosage range and identify  
side effects this phase includes healthy 
volunteer studies
phase ii – the phase of clinical research  
which includes the controlled clinical activities 
conducted to evaluate the effectiveness of the 
drug in patients with the disease under study 
and to begin to determine the safety profile of the 
drug phase ii studies are typically conducted in 
small or medium sized groups of patients and 
can be divided into phase iia studies which tend 
to be designed to assess dosing requirements 
and phase iib studies which tend to assess 
safety and efficacy
phase iii – the phase of clinical research which 
is performed to gather additional information 
about effectiveness and safety of the drug often 
in a comparative setting to evaluate the overall 
benefitrisk profile of the drug phase iii studies 
usually include between several hundred and 
several thousand patients
phc – personalised healthcare
pmda – pharmaceuticals and medical devices 
agency of japan
pound sterling £ gbp pence or p – 
references to the currency of the uk
pozen – pozen inc
primary care – general healthcare provided  
by physicians who ordinarily have first contact 
with patients and who may have continuing  
care for them
proof of concept – data demonstrating that a 
candidate drug results in a clinical change on an 
acceptable endpoint or surrogate in patients with 
the disease
psp – astrazeneca performance share plan
qiagen – qiagen manchester limited
rd – research and development
redeemable preference share – a 
redeemable preference share of £1 each in the 
share capital of the company
regulatory data protection rdp – see the 
intellectual property section from page 72
regulatory exclusivity – any of the ip rights 
arising from generation of clinical data and 
includes regulatory data protection paediatric 
exclusivity and orphan drug status
rsv – respiratory syncytial virus
sarbanesoxley act – the us sarbanesoxley 
act of 2002
sec – the us securities and exchange 
commission the governmental agency that 
regulates the us securities industrystock 
markets
seroquel franchise – seroquel ir and 
seroquel xr
set – senior executive team
sga costs – selling general and 
administrative costs
she – safety health and environment
shionogi – shionogi  co ltd
spc – supplementary protection certificate
specialty care – specific healthcare provided 
by medical specialists who do not generally have 
first contact with patients
spirogen – spirogen sàrl
sti –short term incentive in the context of 
remuneration arrangements
teva – teva pharmaceuticals usa inc
tsr – total shareholder return being the total 
return on a share over a period of time including 
dividends reinvested
uk – united kingdom of great britain and 
northern ireland
uk corporate governance code – the uk 
corporate governance code published by the 
financial reporting council in september 2012 
that sets out standards of good practice in 
corporate governance for the uk
us – united states of america
us dollar us usd or  – references to the 
currency of the us
who – world health organization the united 
nations’ specialised agency for health
234 astrazeneca annual report and form 20f information 2013
additional information  glossary index
2013 performance summary 2
accounting policies 136 189
acquisitions and disposals 166
amgen 60 81
amylin 8 54 66 152
animals 39
annual general meeting 91 92 96 101 103 114  
ardea 60
articles of association 230
audit committee 92 98
biologics 5 14 15 16 33 34 36 48
bms 5 7 8 54 66 70 73 184
board 26 28
branches 95
business background and results overview 75
business model 10
capitalisation and shareholder return 82
cardiovascular and metabolic disease 46 52
cash and cash equivalents 76 139 155
chairman’s statement 6
chief executive officer’s review 8
clinical trials 39
code of conduct 92 95 98
commitments and contingent liabilities 176
community investment 70 71
company history 230
competition 13
compliance and internal audit services 94 199
consolidated statement of cash flows 135
consolidated statement of changes in equity 134
consolidated statement of comprehensive income 132
consolidated statement of financial position 133
corporate governance 26 88
corporate responsibility 220
diabetes 18 52
directors’ interest in shares 110
directors’ remuneration 26 102
directors’ responsibility statement 127
diversity 67 68 89
dividends 5 95 165 227 228 
earnings per ordinary share 4 146
emerging markets 18 41 69 203 214 221
employee costs and share plans for employees 173
employees 66
ethics 38 39 42 94 200 220
finance income and expense 143
financial instruments 139 142 143
financial position 2012 223
financial position 2013 80
financial risk management 82
financial summary 2
gastrointestinal 61 63
gender 67 68 89
glossary 232
goodwill 80 137 149
group financial record 193
group financial statements 127
growth platforms 4 18
health and safety 69 220
human rights 68
independent auditor’s report 128
infection 61 62
inflammation see respiratory inflammation and autoimmunity
intangible assets 80 85 100 150
intellectual property 72
interestbearing loans and borrowings 156
inventories 138 155
key performance indicators 20
leases 183
lifecycle of a medicine 34
litigation 177
manufacturing and supply 43
market definitions 232
neuroscience 61 62
nomination and governance committee 26 93
oncology 32 37 56
operating profit 77
operational overview 4
other investments 139 154
patent expiries 198
patents see intellectual property
patient safety 38
pharmaceutical industry 13
pipeline 4 4851 194
political donations 96
postretirement benefits 159
pricing 15 41 214
principal risks and uncertainties 200
product revenue information 141 214
property plant and equipment 80 138 148 223
provisions for liabilities and charges 158
regulatory requirements 14
related party transactions 184
relations with shareholders 92
remuneration committee 26 92 102
research and development 36
reserves 165
respiratory inflammation and autoimmunity 58
restructuring 16
results of operations 2012 222
results of operations 2013 77
revised core financial measures 224
risks 24 199
sales and marketing 40
sales by geographical area 214
sales by therapy area 214
science committee 26 93
segment information 146
senior management set 30
share capital 165 191
share repurchase 82 165
shareholder information 225
specialty care 2 48
statutory and other information 184
strategic priorities 16
subsidiaries 186
taxation 83 144 189 213
taxation information for shareholders 227 228 229
trade and other payables 138 158
trade and other receivables 138 155
trade marks 231
world pharmaceutical markets 13
additional information financial statements corporate governance strategic report
235 astrazeneca annual report and form 20f information 2013 cautionary statement regarding 
forwardlooking statements
the purpose of this annual report is to 
provide information to the members of the 
company the company and its directors 
employees agents and advisers do not 
accept or assume responsibility to any 
other person to whom this annual report  
is shown or into whose hands it may come 
and any such responsibility or liability is 
expressly disclaimed in order among  
other things to utilise the ‘safe harbour’ 
provisions of the us private securities 
litigation reform act of 1995 and the uk 
companies act 2006 we are providing the 
following cautionary statement this annual 
report contains certain forwardlooking 
statements with respect to the operations 
performance and financial condition of the 
group including among other things 
statements about expected revenues 
margins earnings per share or other 
financial or other measures forward
looking statements are statements  
relating to the future which are based  
on information available at the time such 
statements are made including information 
relating to risks and uncertainties although 
we believe that the forwardlooking 
statements in this annual report are  
based on reasonable assumptions the 
matters discussed in the forwardlooking 
statements may be influenced by factors 
that could cause actual outcomes and 
results to be materially different from those 
expressed or implied by these statements 
the forwardlooking statements reflect 
knowledge and information available at  
the date of the preparation of this annual 
report and the company undertakes no 
obligation to update these forwardlooking 
statements we identify the forwardlooking 
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 
forwardlooking statements certain of 
which are beyond our control include 
among other things those factors identified 
in the principal risks and uncertainties 
section from page 200 of this annual 
report nothing in this annual report 
should be construed as a profit forecast
inclusion of reported performance 
core financial measures and constant 
exchange rate growth rates
astrazeneca’s determination of nongaap 
measures together with our presentation  
of them within our financial information may 
differ from similarly titled nongaap 
measures of other companies
statements of competitive position 
growth rates and sales
in this annual report except as otherwise 
stated market information regarding  
the position of our business or products 
relative to its or their competition is based 
upon published statistical sales data  
for the 12 months ended 30 september 
2013 obtained from ims health a  
leading supplier of statistical data to  
the pharmaceutical industry unless 
otherwise noted for the us dispensed  
new or total prescription data and audited 
sales data are taken respectively from  
ims health national prescription audit  
and ims national sales perspectives for  
the 12 months ended 31 december 2013  
such data is not adjusted for medicaid and 
similar rebates at the time of production  
of this annual report astrazeneca 
understands that ims health intends  
to restate its published us sales data  
for the 12 months ended 30 september 
2013 with such restatement to take place in 
march 2014 while it has not been possible 
to revise the data in this annual report 
based on such restated data astrazeneca 
understands had it been possible that the 
impact on the market information included 
in this annual report would not have been 
significant or material except as otherwise 
stated these market share and industry 
data from ims health have been derived  
by comparing our sales revenue to 
competitors’ and total market sales 
revenues for that period except as 
otherwise stated growth rates are given  
at cer for the purposes of this annual 
report unless otherwise stated references 
to the world pharmaceutical market or 
similar phrases are to the 54 countries 
contained in the ims health database 
which amounted to approximately  
92 in value of the countries audited  
by ims health
astrazeneca websites
information on or accessible through our 
websites including wwwastrazenecacom 
wwwastrazenecaclinicaltrialscom and 
wwwmedimmunecom does not form  
part of and is not incorporated into this 
annual report
externalthird party websites
information on or accessible through any 
third party or external website does not 
form part of and is not incorporated into  
this annual report
figures
figures in parentheses in tables and in the 
financial statements are used to represent 
negative numbers
important information for readers of this annual report
236 astrazeneca annual report and form 20f information 2013
additional information  designed and produced by  
board set and portrait photography by marcus lyon
this annual report is printed on heaven 42 which is fsc
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corporate headquarters
astrazeneca plc
2 kingdom street
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uk
tel 44 020 7604 8000
fax 44 020 7604 8151
investor relations
irastrazenecacom
uk as above
us
investor relations
astrazeneca pharmaceuticals lp
1800 concord pike
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de 198505437
us
tel  1 302 886 3000
fax  1 302 886 2972
registrar
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aspect house
spencer road
lancing
west sussex bn99 6da
uk
tel freephone in the uk  
0800 389 1580
tel outside the uk  
44 0121 415 7033
swedish central securities 
depository
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po box 191
se101 23 stockholm
sweden
tel 46 08 402 9000
us depositary
jpmorgan chase  co
po box 64504
st paul
mn 551640504
us
tel toll free in the us  
800 990 1 135
tel outside the us  
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jpmorganadrwellsfargocom astrazeneca annual report and form 20f information 2013
this annual report is also 
available on our website  
wwwastrazenecacom
annualreport201 3


Summary:
 chairman’s  
statement
“ as expected our financial 
performance in 2013 reflected 
the ongoing impact of the loss 
of exclusivity for several key 
brands with revenue down  
6 to 2571 1 million”
dear shareholder
one of the key responsibilities 
of a board of directors is to set  
a company’s strategy as the 
ceo outlines in his review on 
the following pages and as we 
seek to demonstrate throughout 
this annual report your board 
has chosen a very clear strategic 
route to follow it is rooted in our 
heritage as a company focused 
on innovative science to deliver 
great medicines and sets out our 
ambition to lead in science and 
return to growth
good governance
as your directors review our strategy and 
carry out their other duties it is my role  
as chairman to lead the board effectively 
to my mind good governance is at the 
heart of that so that you can easily see 
how we are governed we have provided 
a corporate governance overview on page 
26 of this annual report we also briefly 
describe how our governance structure 
supports the delivery of our business 
strategy you can find more detail in my 
full corporate governance report from 
page 88 on page 24 we have also 
provided an overview of the risks that 
might prevent us from achieving the full 
potential of our strategy
transparent reporting
hand in hand with good governance goes 
transparent reporting and this year we have 
made a number of other changes in the 
annual report intended to promote this 
some have been caused by changes in uk 
reporting regulations others by changes to 
the corporate governance code and some 
by everevolving reporting best practice 
significant changes include the introduction 
of a strategic report which starts by 
explaining our business model and goes 
on to describe how each element helps 
deliver our strategic goals the strategic 
report is introduced in more detail  
on page 1
this year the annual report also includes 
a revised directors’ remuneration report 
from page 102 which is introduced by the 
chairman of the remuneration committee 
john varley a separate audit committee 
report is introduced by the chairman of 
the audit committee rudy markham
all the changes we have made are also 
intended to reflect our greater than ever 
efforts to make this annual report fair 
balanced and understandable
challenging environment
any balanced review of astrazeneca 
needs to reflect the environment in which 
we operate the challenging conditions 
which i touched on last year continue 
the world pharmaceutical market is still 
growing and underlying demographic 
trends remain favourable to longterm 
industry growth however many of the 
drivers of demand and supply in the 
industry are under pressure
6 astrazeneca annual report and form 20f information 2013
strategic report  outlook 
as we look to the future we expect a 
lowtomid single digit percentage decline 
in revenue at cer for 2014 in percentage 
terms core eps for 2014 is expected to 
decline in the teens at cer following the 
acquisition of bms’s 50 interest in our 
joint diabetes business and as the diabetes 
business’s pipeline of new products is 
progressively launched we expect 2017 
revenues will be broadly in line with 2013 
revenues this expectation involves a 
number of assumptions including among 
other things nexium us generic launch  
in may 2014
appreciation
before closing and on behalf of the  
board i want to thank the employees 
of astrazeneca whose efforts helped  
us achieve so much in 2013 as we lay  
the foundations for leading in science  
and returning to growth in particular  
i want to express my appreciation to  
pascal and all the members of the set  
for the leadership they have shown  
and the inspiration they have provided  
to the organisation
finally i would like to thank all my fellow 
directors for the contribution they have 
made to our discussions throughout a 
busy 2013 we look forward to welcoming 
as many of you as possible to our annual 
general meeting in april
leif johansson 
chairman
core eps for 2013 were 505 down  
23 on 2012 this decline was greater  
than the decline in revenue primarily  
due to our investment in our key growth 
platforms and strengthened pipeline 
reported eps for the year was down  
55 to 204 the impairment of bydureon 
in the fourth quarter reduced reported  
eps by 110 resulting in a reported loss 
per share for the quarter of 042
a responsible company
i firmly believe that our commitment to 
good financial performance needs to be 
matched by a continued focus on being 
a responsible company by working with 
integrity and delivering sustainable business 
development i therefore fully support the 
decision we have made to focus our 
responsible business activities on access 
to healthcare diversity and reducing our 
environmental impact it is where i believe 
we are able to implement standards that 
will accelerate our business strategy and 
deliver wider benefits to society
it is also gratifying to see our current efforts 
recognised by again being listed in the dow 
jones sustainability world index in 2013 
with a recordequalling score and retaining 
our listing on the european index for the 
sixth year running
return to shareholders 
consistent with our progressive dividend 
policy to maintain or grow the dividend 
each year the board has recommended  
a second interim dividend of 190 this 
brings the dividend for the full year to 
280 1760 pence sek 1833 
the board regularly reviews our distribution 
policy and overall financial strategy to 
continue to strike a balance between the 
interests of the business our financial 
creditors and our shareholders having 
regard for business investment funding the 
progressive dividend policy and meeting 
our debt service obligations we currently 
believe it is appropriate to continue the 
suspension of the share repurchase 
programme which was announced in 
october 2012 we continue to target a 
strong investment grade credit rating
on the demand side we face increased 
competition from generic drugs as some  
of the world’s most successful medicines 
come off patent in addition securing 
recognition through reimbursement 
approval and reward for innovation 
through favourable pricing and sales 
is becoming more difficult in the face of 
intense pricing pressures particularly 
in established markets facing rising 
healthcare costs on the supply side the 
industry faces an ongoing rd productivity 
challenge rd costs have risen significantly 
over the past decade while industrywide 
probability of success of new medicines 
though showing some recent signs of 
improvement has not kept pace
loss of exclusivity
loss of exclusivity has had and continues 
to have a significant impact on astrazeneca 
in 2013 loss of exclusivity on brands such 
as arimidex atacand crestor nexium 
and seroquel ir in a number of markets 
accounted for a revenue decline of some 
22 billion over the coming years this 
trend will continue as medicines such as 
crestor nexium and seroquel xr continue 
to lose exclusivity in markets such as the 
us and europe
of course loss of exclusivity is a normal 
part of an innovative medicine’s lifecycle 
it comes at the end of the period when a 
new medicine is safeguarded from being 
copied so that we can generate returns  
on the investment we have made both to 
reinvest in the business and provide an 
appropriate return to you our owners a 
wellfunctioning intellectual property system 
of this type which rewards innovation is 
the principal economic safeguard in our 
industry it underpins our business model 
which we explore in more detail in the 
business model section from page 10
our performance in 2013 
as expected our financial performance in 
2013 reflected the ongoing impact of the 
loss of exclusivity for several key brands 
with revenue down 6 to 25711 million 
2012 27 973 million core operating 
profit fell by 22 to 8390 million 2012 
11159 million the decline in revenue was 
in part offset by our key growth platforms 
brilinta our diabetes franchise respiratory 
emerging markets and japan which 
delivered an incremental 12 billion of 
revenue in 2013 
additional information financial statements corporate governance strategic report
7 astrazeneca annual report and form 20f information 2013