THIRD QUARTER AND NINE MONTHS RESULTS 2011

THIRD QUARTER AND NINE MONTHS RESULTS 2011

Revenue for the third quarter declined by 2 percent at constant exchange
rates (CER) to $8,213 million.

-Strong revenue growth for Crestor, Seroquel XR and Symbicort.

-Revenue performance reflects the loss of more than $350 million of
revenue from generic competition, as well as the impact of government
price interventions.

-Emerging Markets revenue increased by 7 percent at CER in the third
quarter; revenue was up 10 percent for the nine months.

Core operating profit in the third quarter was $3,177 million, down 2
percent at CER, in line with the decline in revenue.

-Core operating margin of 38.7 percent of revenue was down 0.3
percentage points at CER, as increased investment in Research and
Development was largely offset by higher gross margin and lower SG&A
expense as a percentage of revenue.

Core EPS in the third quarter was up 12 percent at CER to $1.71.

-Core EPS benefited from the lower number of shares outstanding
resulting from net share repurchases and a lower tax rate compared with
the third quarter last year.  

Reported EPS in the third quarter was up 140 percent at CER to $2.56.  

-Gain on the sale of Astra Tech, which was excluded from Core EPS,
amounted to $1.08 in the third quarter 2011. Third quarter 2010 included
legal provisions of $0.24, which also benefited the growth rate for
Reported EPS in the third quarter 2011.

Net cash distributions to shareholders for the nine months increased by
64 percent to $7,642 million.

Core EPS target for the full year increased to the range of $7.20 to
$7.40, largely on currency movements.

Financial Summary

Group               3rd Quarter  3rd Quarter  Actual  CER     9 Months 
9 Months  Actual  CER
                    2011         2010         %       %       2011     
2010      %       %
                    $m           $m                           $m       
$m
Revenue             8,213        7,898        +4      -2      24,935   
24,652    +1      -3
Reported
Operating Profit    4,262        2,406        +77     +78     10,628   
9,083     +17     +16
Profit before Tax   4,169        2,258        +85     +86     10,315   
8,694     +19     +18
Earnings per Share  $2.56        $1.08        +137    +140    $6.17    
$4.45     +39     +38
Core*
Operating Profit    3,177        3,231        -2      -2      10,177   
10,738    -5      -6
Profit before Tax   3,084        3,083        -       -1      9,864    
10,349    -5      -5
Earnings per Share  $1.71        $1.50        +14     +12     $5.67    
$5.32     +7      +6

*  Core financial measures are supplemental non-GAAP measures which
management believe enhance understanding of the Company's performance;
it is upon these measures that financial guidance for 2011 is based. See
pages 10 and 11 for a definition of Core financial measures and a
reconciliation of Core to Reported financial measures.

David Brennan, Chief Executive Officer, said: “We have delivered a third
quarter revenue and Core earnings performance in line with our
expectations, against the backdrop of anticipated generic competition
and government price interventions. Our disciplined execution continues
to generate strong cash returns, with dividends and net share
repurchases well ahead of last year. We have also increased our Core EPS
target for the full year.”
 

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