AstraZeneca’s business performance, in the context of tough global economic conditions, has been better than anticipated. The strong first half performance is reflected in the increased Core EPS target for the full year and continued progress has been made on the pipeline.

Second quarter sales increased by 9 percent at constant exchange rates (CER) to $7,958 million.
-Crestor sales increased by 33 percent at CER. Quarterly sales exceed $1 billion for the first time.
-US sales of Toprol-XL, benefiting from withdrawal of generic products, accounted for 3 percent of global
sales growth at CER.
-Emerging Markets sales increased by 8 percent at CER; on track for double-digit growth for the full year.
Core operating profit in the second quarter increased by 37 percent at CER to $3,606 million on sales
growth, higher other income and operational efficiencies.
Core EPS in the second quarter increased by 37 percent at CER to $1.64.
Reported EPS in the second quarter increased by 10 percent at CER to $1.18.
-Provisions totalling $430 million have been taken in the second quarter with respect to various federal and
state investigations and civil litigation matters relating to drug marketing and pricing practices (see Note 4).
Strong cash flows have reduced net debt by $3 billion since 31 December 2008.
The Board has recommended a first interim dividend of $0.59, an increase of 7 percent.
Continued progress on the pipeline, including three regulatory submissions since the first quarter.
-Applications for regulatory approval submitted in the US for Certriad (lipid abnormalities) and Vimovo (pain
relief for arthritis); Zactima (lung cancer) submitted in the US and the European Union.
-Iressa approved in Europe for lung cancer treatment.
-New diabetes treatment ONGLYZATM recommended for approval by European CHMP.
Core EPS target for the full year increased to range of $5.70 to $6.00.

Financial Summary
Group 2nd Quarter 2009 $m 2nd Quarter 2008 $m Actual % CER % Half Year 2009 $m
Half Year 2008 $m Actual % CER %
Sales 7,958 7,956 - +9 15,659 15,633 - +8
Reported
Operating Profit 2,851 2,473 +15 +19 6,014 4,730 +27 +28
Profit before Tax 2,608 2,279 +14 +18 5,611 4,422 +27 +27
Earnings per Share $1.18 $1.11 +6 +10 $2.66 $2.14 +24 +24
Core*
Operating Profit 3,606 2,737 +32 +37 6,968 5,502 +27 +28
Profit before Tax 3,363 2,543 +32 +38 6,565 5,194 +26 +28
Earnings per Share $1.64 $1.25 +31 +37 $3.22 $2.53 +27 +28
* Core financial measures are supplemental non-GAAP measures which management believe enhances understanding of the
Company’s performance; it is upon these measures that financial guidance for 2009 is based. See page 10 for a definition of Core
financial measures and pages 10 and 11 for a reconciliation of Core to Reported financial measures.

David Brennan, Chief Executive Officer, said: “Our business performance, in the context of tough global economic conditions, has been better than we anticipated. Good operating execution as well as the Toprol-XL
benefit has led to a strong first half performance, which is reflected in our increased Core EPS target for the full year. Continued progress on the pipeline is evidenced by significant regulatory submissions and approvals
since our first quarter report.”

Business Highlights All narrative in this section refers to growth rates at constant exchange rates (CER) unless otherwise indicated Second Quarter
Sales in the second quarter increased by 9 percent at CER, but were flat on an actual basis as a result of the negative impact of exchange rate movements. Sales benefited from strong growth of the Toprol-XL franchise in
the US as a result of the market withdrawal by two generic competitors; adjusting for this, global sales increased by 6 percent. US sales were up 13 percent (6 percent excluding Toprol-XL). Group sales in the Rest
of World were also up 6 percent. Sales in Established Markets were up 5 percent. Emerging Markets sales growth was 8 percent, lower than recent quarters but broadly in line with the Company’s expectations. Doubledigit
sales growth in Emerging Markets is anticipated for the full year.
Core operating profit in the second quarter was up 37 percent to $3,606 million. Approximately 60 percent of the Core operating profit increase was driven by higher sales; the balance from operational efficiencies and
higher other income related to proceeds from the disposal of certain Nordic OTC products. Reported operating profit increased by 19 percent to $2,851 million; this growth rate was 18 percentage points lower than the
growth in Core operating profit, reflecting provisions totalling $430 million with respect to various federal and state investigations and civil litigation matters relating to drug marketing and pricing practices taken in the
second quarter 2009.
Core earnings per share in the second quarter were $1.64 compared with $1.25 in the second quarter 2008, a 37 percent increase at CER and in line with the growth in Core operating profit in the quarter. Reported earnings per share in the second quarter were up 10 percent to $1.18, after charging the legal provisions as well as higher restructuring and synergy costs.

Finance Income and Expense
Net finance expense was $403 million for the first half ($243 million for the quarter), versus $308 million ($194 million for the quarter) in 2008. The key drivers were the continued reversal of the fair value gain as described
below, reduced interest received due to lower interest rates, a higher net interest expense on pension obligations, partially offset by reduced interest payable on lower debt balances.
Net finance expense included a net fair value loss of $79 million for the quarter ($36 million loss in Q2 2008) and $100 million for the first half ($8 million gain in H1 2008) as credit spreads have reduced since the year
end. As outlined in the full year 2008 results, a net fair value gain of $130 million was recorded in 2008 mainly relating to two long-term bonds. These bonds are swapped to floating interest rates and accounted for using the
fair value option under IFRS. Under this accounting treatment both the bonds and the related interest rate swaps are measured at fair value, with changes in fair value reported in the income statement. The fair value of
each instrument reflects changes in market interest rates, which broadly offset, but the fair value of these bonds also reflects changes in credit spreads. If credit spreads continue to reduce, the 2008 gain will reverse further in 2009.

Taxation
The effective tax rate for the second quarter is 34.2 percent (2008 28.6 percent) and 31.2 percent for the first half (2008 29.1 percent). Excluding the impact of the $430 million legal provisions in the second quarter, the
effective tax rate for the second quarter would be 29.3 percent, and 29.0 percent for the first half. For the full year, the tax rate, excluding the impact of the $430 million legal provisions, is currently anticipated to be around 29.5 percent.

Cash Flow
Cash generated from operating activities was $5,334 million in the six months to 30 June 2009, compared with $4,292 million in the corresponding six month period in 2008. The improvement of $1,042 million is primarily
driven by the increase in cash generated from operations of $1,224 million, reflecting the strong underlying performance and improved working capital management, partially offset by higher tax payments of $186 million.
Net cash outflows from investing activities were $162 million in the six months compared with $3,199 million in the corresponding period in 2008. The movement of $3,037 million is due primarily to the payment of $2,630
million to Merck in 2008 as part of the partial retirement, and the proceeds from the disposal of the Abraxane® co-promotion rights of $269 million received in H1 2009.
Cash distributions to shareholders were $2,103 million through payment of the second interim dividend from 2008.

Debt and Capital Structure
As at 30 June 2009, outstanding gross debt (including loans, short-term borrowings and overdrafts) was $11,661 million (31 December 2008: $11,848 million). Of this debt, $1,498 million is due within one year (31
December 2008: $993 million), which we currently anticipate repaying from current cash balances of $7,195 million, without the need to refinance. Strong business cash flows have reduced net debt by $3,008 million since 31 December 2008 to $4,166 million.

Dividends and Share Repurchases
The Board has recommended a first interim dividend for 2009 of $0.59 per share (36.0 pence, 4.41 SEK), an increase of 7 percent, to be paid on 14 September 2009.
As announced in 2008, the Group’s share repurchase programme has been suspended. As a result, during the first six months, no shares were re-purchased. In the half year, 0.6 million shares were issued in consideration
of share option exercises for a total of $19 million.
The total number of shares in issue at 30 June 2009 was 1,448 million.

Related Party Transactions
There have been no significant related party transactions in the period.

Calendar
29 October 2009 Announcement of third quarter and nine months 2009 results
28 January 2010 Announcement of fourth quarter and full year 2009 results