AstraZeneca Annual Report and Form 20-F Information 2008

Reported, constant exchange rate and core financial measures

Inclusion of reported, constant exchange rate and core financial measures
Throughout the Directors’ Report and in the Financial Highlights the following measures are referred to:

• Reported performance. Reported performance takes into account all the factors (including those which we cannot influence, principally currency exchange rates) that have affected the results of our business as reflected in our Group Financial Statements prepared in accordance with International Financial Reporting Standards as adopted by the European Union and as issued by the International Accounting Standards Board.
• Core financial measures. This is a non-GAAP measure because unlike reported performance it cannot be derived directly from the information in the Group’s Financial Statements. This measure is adjusted to exclude certain significant items, such as charges and provisions related to restructuring and synergy programmes, amortisation and the impairment of the significant intangibles arising from corporate acquisitions and those related to our current and future exit arrangements with Merck in the US, and other specified items. A reconciliation between reported performance and core performance is provided in the Financial Review section.
• Constant exchange rate (CER) growth rates. This is also a non-GAAP measure. This measure removes the effects of currency movements (by retranslating the current year’s performance at previous years’ exchange rates and adjusting for other exchange effects, including hedging). A reconciliation of reported results adjusted for the impact of currency movements is provided in the Financial Review section.

Throughout this Annual Report and Form 20-F Information, growth rates are expressed at CER unless otherwise stated.

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