AstraZeneca Annual Report and Form 20-F Information 2008

Restructuring and synergy costs

In 2008 we continued the global restructuring and synergy programmes announced in 2007. Costs for the full year totalled $881 million (of which $219 million are non-cash items).

This annual total reflects an extension in the scope of the previously announced $1,975 million programme. New initiatives include further rationalisation of the global supply chain, additional restructuring of the sales and marketing organisation and business infrastructure.

When fully implemented, these and other new business reshaping activities, combined with revised estimates for the original 2007 programme, will result in the overall programme delivering a reduction of approximately 15,000 positions by 2013. Reductions in positions are subject to consultations with works councils, trade unions and other employee representatives and in accordance with local labour laws.

As a result of the expanded scope of these business reshaping programmes, total programme charges for restructuring and synergies are now estimated to reach $2,950 million. When fully implemented, programme benefits are now estimated to reach $2.5 billion per annum.