Consolidated Statement of Comprehensive Income

for the year ended 31 December

2020 2019 2018

Notes $m $m $m
Product Sales 1 25,890 23,565 21,049
Collaboration Revenue 1 727 819 1,041
Total Revenue 26,617 24,384 22,090
Cost of sales (5,299) (4,921) (4,936)
Gross profit 21,318 19,463 17,154
Distribution costs (399) (339) (331)
Research and development expense 2 (5,991) (6,059) (5,932)
Selling, general and administrative costs 2 (11,294) (11,682) (10,031)
Other operating income and expense 2 1,528 1,541 2,527
Operating profit 5,162 2,924 3,387
Finance income 3 87 172 138
Finance expense 3 (1,306) (1,432) (1,419)
Share of after tax losses in associates and joint ventures 11 (27) (116) (113)
Profit before tax 3,916 1,548 1,993
Taxation 4 (772) (321) 57
Profit for the period 3,144 1,227 2,050

176 AstraZeneca Annual Report & Form 20-F Information 2020 / Financial Statements
Consolidated Statement of Financial Position
at 31 December

2020 2019 2018

Notes $m $m $m
Assets
Non-current assets
Property, plant and equipment 7 8,251 7,688 7,421
Right-of-use assets 8 666 647 –
Goodwill 9 11,845 11,668 11,707
Intangible assets 10 20,947 20,833 21,959
Investments in associates and joint ventures 11 39 58 89
Other investments 12 1,108 1,401 833
Derivative financial instruments 13 171 61 157
Other receivables 14 720 740 515
Deferred tax assets 4 3,438 2,718 2,379
47,185 45,814 45,060
Current assets
Inventories 15 4,024 3,193 2,890
Trade and other receivables 16 7,022 5,761 5,574
Other investments 12 160 849 849
Derivative financial instruments 13 142 36 258
Income tax receivable 364 285 207
Cash and cash equivalents 17 7,832 5,369 4,831
Assets held for sale 18 – 70 982
19,544 15,563 15,591
Total assets 66,729 61,377 60,651
Liabilities
Current liabilities
Interest-bearing loans and borrowings 19 (2,194) (1,822) (1,754)
Lease liabilities 8 (192) (188) –
Trade and other payables 20 (15,785) (13,987) (12,841)
Derivative financial instruments 13 (33) (36) (27)
Provisions 21 (976) (723) (506)
Income tax payable (1,127) (1,361) (1,164)

Financial Statements
(20,307) (18,117) (16,292)
Non-current liabilities
Interest-bearing loans and borrowings 19 (17,505) (15,730) (17,359)
Lease liabilities 8 (489) (487) –
Derivative financial instruments 13 (2) (18) (4)
Deferred tax liabilities 4 (2,918) (2,490) (3,286)
Retirement benefit obligations 22 (3,202) (2,807) (2,511)
Provisions 21 (584) (841) (385)
Other payables 20 (6,084) (6,291) (6,770)
(30,784) (28,664) (30,315)
Total liabilities (51,091) (46,781) (46,607)
Net assets 15,638 14,596 14,044
Equity
Capital and reserves attributable to equity holders of the Company
Share capital 24 328 328 317
Share premium account 7,971 7,941 4,427
Capital redemption reserve 153 153 153
Merger reserve 448 448 448
Other reserves 23 1,423 1,445 1,440
Retained earnings 23 5,299 2,812 5,683
15,622 13,127 12,468
Non-controlling interests 26 16 1,469 1,576
Total equity 15,638 14,596 14,044

The Financial Statements from pages 176 to 237 were approved by the Board and were signed on its behalf by

Pascal Soriot Marc Dunoyer

Director Director
11 February 2021

AstraZeneca Annual Report & Form 20-F Information 2020 / Consolidated Statements 177
Consolidated Statement of Cash Flows
for the year ended 31 December

2020 2019 2018

Notes $m $m $m
Cash flows from operating activities
Profit before tax 3,916 1,548 1,993
Finance income and expense 3 1,219 1,260 1,281
Share of after tax losses of associates and joint ventures 11 27 116 113
Depreciation, amortisation and impairment 3,149 3,762 3,753
Increase in trade and other receivables (739) (898) (523)
Increase in inventories (621) (316) (13)
Increase/(decrease) in trade and other payables and provisions 1,721 868 (103)
Gains on disposal of intangible assets 2 (1,030) (1,243) (1,885)
Fair value movements on contingent consideration arising from business combinations 20 (272) (614) (495)
Non-cash and other movements 17 (276) 378 (290)
Cash generated from operations 7,094 4,861 3,831
Interest paid (733) (774) (676)
Tax paid (1,562) (1,118) (537)
Net cash inflow from operating activities1 4,799 2,969 2,618
Cash flows from investing activities
Payment of contingent consideration from business combinations 20 (822) (709) (349)
Purchase of property, plant and equipment (961) (979) (1,043)
Disposal of property, plant and equipment 106 37 12
Purchase of intangible assets (1,645) (1,481) (328)
Disposal of intangible assets 951 2,076 2,338
Movement in profit-participation liability 2 40 150 –
Purchase of non-current asset investments (119) (13) (102)
Disposal of non-current asset investments 1,381 18 24
Movement in short-term investments, fixed deposits and other investing instruments 745 194 405
Payments to associates and joint ventures 11 (8) (74) (187)
Interest received 47 124 193
Net cash (outflow)/inflow from investing activities (285) (657) 963
Net cash inflow before financing activities 4,514 2,312 3,581
Cash flows from financing activities

Financial Statements
Proceeds from issue of share capital 30 3,525 34
Issue of loans 2,968 500 2,971
Repayment of loans (1,609) (1,500) (1,400)
Dividends paid (3,572) (3,592) (3,484)
Hedge contracts relating to dividend payments (101) 4 (67)
Repayment of obligations under leases (207) (186) –
Movement in short-term borrowings 288 (516) (98)
Net cash outflow from financing activities (2,203) (1,765) (2,044)
Net increase in Cash and cash equivalents in the period 2,311 547 1,537
Cash and cash equivalents at the beginning of the period 5,223 4,671 3,172
Exchange rate effects 12 5 (38)
Cash and cash equivalents at the end of the period 17 7,546 5,223 4,671

AstraZeneca Annual Report & Form 20-F Information 2020 / Consolidated Statements 179
7 Property, plant and equipment
Assets in Total property,
Land and Plant and course of plant and
buildings equipment construction equipment
$m $m $m $m
Cost
At 1 January 2018 5,023 7,183 2,433 14,639
Capital expenditure 25 99 910 1,034
Transfer of assets into use 429 594 (1,023) –
Disposals and other movements 50 (427) (14) (391)
Exchange adjustments (161) (353) (129) (643)
At 31 December 2018 5,366 7,096 2,177 14,639
Capital expenditure 8 48 940 996
Transfer of assets into use 403 620 (1,023) –
Disposals and other movements (236) (324) (11) (571)
Exchange adjustments (9) (57) 3 (63)
At 31 December 2019 5,532 7,383 2,086 15,001
Capital expenditure 10 42 874 926
Transfer of assets into use 137 462 (599) –
Disposals and other movements (48) (615) (18) (681)
Exchange adjustments 220 466 135 821
At 31 December 2020 5,851 7,738 2,478 16,067
Depreciation and impairment
At 1 January 2018 2,231 4,793 – 7,024
Depreciation charge for the year 202 412 – 614
Impairment charge 150 98 43 291
Disposals and other movements 10 (336) (43) (369)
Exchange adjustments (89) (253) – (342)
At 31 December 2018 2,504 4,714 – 7,218
Depreciation charge for the year 209 438 – 647
Impairment (reversal)/charge (67) 14 – (53)
Disposals and other movements (120) (313) – (433)

Financial Statements
Exchange adjustments (21) (45) – (66)
At 31 December 2019 2,505 4,808 – 7,313
Depreciation charge for the year 227 462 – 689
Impairment (reversal)/charge (1) 2 12 13
Disposals and other movements (42) (606) (12) (660)
Exchange adjustments 137 324 – 461
At 31 December 2020 2,826 4,990 – 7,816
Net book value
At 31 December 2018 2,862 2,382 2,177 7,421
At 31 December 2019 3,027 2,575 2,086 7,688
At 31 December 2020 3,025 2,748 2,478 8,251

AstraZeneca Annual Report & Form 20-F Information 2020 / Notes to the Group Financial Statements 195
Notes to the Group Financial Statements
continued

15 Inventories
2020 2019 2018
$m $m $m
Raw materials and consumables 1,262 830 794
Inventories in process 1,331 1,272 1,450
Finished goods and goods for resale 1,431 1,091 646
Inventories 4,024 3,193 2,890

The Group recognised $3,110m (2019: $2,708m; 2018: $2,659m) of inventories as an expense within Cost of sales during the year.

Inventory write-offs in the year amounted to $149m (2019: $231m; 2018: $208m).

16 Current trade and other receivables

2020 2019 2018
$m $m  $m
Amounts due within one year
Trade receivables 3,829 3,606 3,033
Less: Amounts provided for doubtful debts (Note 27) (23) (21) (38)
3,806 3,585 2,995
Other receivables 1,278 1,083 1,143
Prepayments 1,735 865 871
Government grants receivable 53 – –
Accrued income 150 228 492
7,022 5,761 5,501
Amounts due after more than one year
Prepayments – – 73
– – 73
Trade and other receivables 7,022 5,761 5,574

204 AstraZeneca Annual Report & Form 20-F Information 2020 / Financial Statements