2. Sustainable business in Emerging Markets Jens Pii Olesen Head of Marketing International Operations

5. New opportunities in pharmaceuticals Slide no

6. WW pharmaceutical sales growth 70% of growth outside developed markets Slide no $955bn $130bn $55bn $765bn 2009E 2014E Developed Markets Other Markets Source: IMS. Developed markets: EU-15, Norway, Switzerland, Iceland; US, Canada, Japan, Australia, New Zealand. 30% 70%

7. N-11 some overlap but 7 others… Slide no

8. “ P” considerations Slide no

9. Portfolio Brands lives long in Emerging Markets Slide no l Source: IMS 2009: (BRIC + South Korea, Mexico, Poland, Taiwan, Hungary, Romania, Egypt, Algeria, Saudi Arabia, South Africa, Ukraine, UAE Branded originals ~$50bn (~28%) Branded generics ~$90bn (~50%) Commodity generics ~$10bn (~5%) ~$30bn (~17%) Total ~$180bn Patented originals

10. Pricing Prices are reasonable Slide no l Source: IMS 2009: (BRIC + South Korea, Mexico, Poland, Taiwan, Hungary, Romania, Egypt, Algeria, Saudi Arabia, South Africa, Ukraine, UAE Branded originals 70-100% Branded generics 50-80% Commodity generics Cost+ 100% EU prices Patented originals

11. Profit Lower prices are made up by lower costs Slide no 69 100 Sources: OM estimation using AZ (72%) and SA (66%) annual reports and IR reports. P re-R&D operating margin (excluding central costs), indexed to typical established markets. FTE cost analysis: Internal competitor analysis Typical emerging markets Typical established markets People cost index: US/EU: 100 Brazil: 40 Russia: 30 China: 25 India: 4